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: September 30, 2004
Date of reporting period: March 31, 2004
ITEM 1. REPORT TO SHAREHOLDERS
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[LOGO]
WELLS
FARGO
FUNDS
Wells Fargo STOCK FUNDS
SEMI-ANNUAL REPORT
WELLS FARGO DIVERSIFIED EQUITY FUND
WELLS FARGO DIVERSIFIED SMALL CAP FUND
WELLS FARGO EQUITY INCOME FUND
WELLS FARGO EQUITY INDEX FUND
WELLS FARGO GROWTH FUND
WELLS FARGO GROWTH EQUITY FUND
WELLS FARGO INDEX FUND
WELLS FARGO INTERNATIONAL EQUITY FUND
WELLS FARGO LARGE CAP APPRECIATION FUND(SM)
WELLS FARGO LARGE CAP VALUE FUND
WELLS FARGO LARGE COMPANY GROWTH FUND
WELLS FARGO MONTGOMERY EMERGING MARKETS FOCUS FUND(SM)
WELLS FARGO MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND(SM)
WELLS FARGO MONTGOMERY MID CAP GROWTH FUND(SM)
WELLS FARGO MONTGOMERY SMALL CAP FUND(SM)
WELLS FARGO SIFE SPECIALIZED FINANCIAL SERVICES FUND
WELLS FARGO SMALL CAP GROWTH FUND
WELLS FARGO SMALL CAP OPPORTUNITIES FUND
WELLS FARGO SMALL COMPANY GROWTH FUND
WELLS FARGO SMALL COMPANY VALUE FUND
WELLS FARGO SPECIALIZED HEALTH SCIENCES FUND(SM)
WELLS FARGO SPECIALIZED TECHNOLOGY FUND(SM)
MARCH 31, 2004
WELLS FARGO STOCK FUNDS
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TABLE OF CONTENTS
LETTER TO SHAREHOLDERS.................................................... 1
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PERFORMANCE AT A GLANCE
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DIVERSIFIED EQUITY FUND................................................ 2
DIVERSIFIED SMALL CAP FUND............................................. 4
EQUITY INCOME FUND..................................................... 6
EQUITY INDEX FUND...................................................... 8
GROWTH FUND............................................................ 10
GROWTH EQUITY FUND..................................................... 12
INDEX FUND............................................................. 14
INTERNATIONAL EQUITY FUND.............................................. 16
LARGE CAP APPRECIATION FUND............................................ 18
LARGE CAP VALUE FUND................................................... 20
LARGE COMPANY GROWTH FUND.............................................. 22
MONTGOMERY EMERGING MARKETS FOCUS FUND................................. 24
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND......................... 26
MONTGOMERY MID CAP GROWTH FUND......................................... 28
MONTGOMERY SMALL CAP FUND.............................................. 30
SIFE SPECIALIZED FINANCIAL SERVICES FUND............................... 32
SMALL CAP GROWTH FUND.................................................. 34
SMALL CAP OPPORTUNITIES FUND........................................... 36
SMALL COMPANY GROWTH FUND.............................................. 38
SMALL COMPANY VALUE FUND............................................... 40
SPECIALIZED HEALTH SCIENCES FUND....................................... 42
SPECIALIZED TECHNOLOGY FUND............................................ 44
PORTFOLIO OF INVESTMENTS
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DIVERSIFIED EQUITY FUND................................................ 46
DIVERSIFIED SMALL CAP FUND............................................. 47
EQUITY INCOME FUND..................................................... 48
EQUITY INDEX FUND...................................................... 49
GROWTH FUND............................................................ 64
GROWTH EQUITY FUND..................................................... 67
INDEX FUND............................................................. 68
INTERNATIONAL EQUITY FUND.............................................. 69
LARGE CAP APPRECIATION FUND............................................ 73
LARGE CAP VALUE FUND................................................... 74
LARGE COMPANY GROWTH FUND.............................................. 75
MONTGOMERY EMERGING MARKETS FOCUS FUND................................. 76
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND......................... 78
MONTGOMERY MID CAP GROWTH FUND......................................... 82
MONTGOMERY SMALL CAP FUND.............................................. 85
SIFE SPECIALIZED FINANCIAL SERVICES FUND............................... 89
SMALL CAP GROWTH FUND.................................................. 91
SMALL CAP OPPORTUNITIES FUND........................................... 95
SMALL COMPANY GROWTH FUND.............................................. 100
SMALL COMPANY VALUE FUND............................................... 101
SPECIALIZED HEALTH SCIENCES FUND....................................... 102
SPECIALIZED TECHNOLOGY FUND............................................ 104
FINANCIAL STATEMENTS
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STATEMENT OF ASSETS AND LIABILITIES.................................... 108
STATEMENT OF OPERATIONS................................................ 112
STATEMENT OF CHANGES IN NET ASSETS..................................... 116
FINANCIAL HIGHLIGHTS................................................... 128
NOTES TO FINANCIAL HIGHLIGHTS.......................................... 142
NOTES TO FINANCIAL STATEMENTS............................................. 143
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MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS
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DISCIPLINED GROWTH PORTFOLIO........................................... 159
EQUITY INCOME PORTFOLIO................................................ 162
INDEX PORTFOLIO........................................................ 165
INTERNATIONAL EQUITY PORTFOLIO......................................... 180
LARGE CAP APPRECIATION PORTFOLIO....................................... 184
LARGE CAP VALUE PORTFOLIO.............................................. 188
LARGE COMPANY GROWTH PORTFOLIO......................................... 192
OVERSEAS PORTFOLIO..................................................... 194
SMALL CAP INDEX PORTFOLIO.............................................. 199
SMALL COMPANY GROWTH PORTFOLIO......................................... 216
SMALL COMPANY VALUE PORTFOLIO.......................................... 222
FINANCIAL STATEMENTS
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STATEMENT OF ASSETS AND LIABILITIES.................................... 228
STATEMENT OF OPERATIONS................................................ 230
STATEMENT OF CHANGES IN NET ASSETS..................................... 232
FINANCIAL HIGHLIGHTS................................................... 238
NOTES TO FINANCIAL STATEMENTS............................................. 241
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OTHER INFORMATION (UNAUDITED)............................................. 245
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LIST OF ABBREVIATIONS..................................................... 247
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NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
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THIS PAGE IS LEFT INTENTIONALLY BLANK --
SHAREHOLDER LETTER WELLS FARGO STOCK FUNDS
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DEAR VALUED SHAREHOLDER,
We are pleased to provide you with this Wells Fargo Stock Funds
semi-annual report for the six-month period ended March 31, 2004. 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: A MODERATE, JOBLESS RECOVERY
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The economic recovery continued during the past six months. Strong
consumer spending and positive performance by the housing and manufacturing
sectors supported the expansion and helped counter the lack of job creation.
Increased tax refunds and gains in household wealth from the past year's stock
market rally also helped bolster consumer spending. Lower mortgage rates made
housing more affordable and increased household cash flow. Finally, domestic
spending, solid growth of exports amid the global economic recovery, and the
weaker dollar's positive impact on U.S. competitiveness helped the manufacturing
sector.
The Federal Reserve Board (the Fed) kept short-term interest rates at 1%
during the period, the lowest level in more than 45 years. The Fed maintained
the low rates, as the economy continued to experience a moderate, jobless
recovery and little threat of inflation. Business confidence also improved and
corporate earnings continued to grow, signaling an increase in capital spending
and the possibility of employment growth by the end of the reporting period.
Unfortunately, this initial optimism dimmed by the close of the six-month
period, as concerns over disappointing job gains put somewhat of a damper on the
stock market.
STOCKS: UPWARD MOMENTUM
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Stocks turned in a positive performance during the reporting period, with
the S&P 500 Index finishing with a 14.07% gain. In eight of the ten S&P 500
sectors, over two-thirds of the stocks surpassed old market highs (technology
and telecommunications were the exceptions). As consumer confidence improved and
investors became more willing to assume risk, small cap stocks outperformed
large cap stocks. In addition, international stocks outperformed domestic stocks
due to the U.S. dollar's steep decline in the currency market.
ECONOMIC RECOVERY DAMPENS THE BOND MARKET
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Bond returns continued to lag behind stock returns, as the period finished
with a 2.98% gain for the Lehman Brothers Aggregate Bond Index. An improving
economy, generally a positive sign for stocks, is typically more challenging for
bonds because interest rates often rise as the economy strengthens. Looking
ahead, increasing federal budget deficits are a major concern, since massive
U.S. Government borrowing could exert upward pressure on interest rates.
LOOKING AHEAD: CONTINUING GROWTH?
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Presidential election years have historically witnessed positive gains in
the stock market. Continuing economic growth, gradually rising employment rates,
low inflation and higher corporate profits could carry the stock market's
momentum well into this presidential election year. The potential for increased
interest rates and rising inflation could propel large cap stocks into the
forefront and negatively affect bond returns in the near term. Despite the fact
that consumer confidence and business spending are rising, investors continue to
seem unconvinced about the economic recovery, which could affect the recovery's
sustainability.
During all market conditions, we believe successful investing includes
taking a balanced approach, maintaining a portfolio that is diversified among
stocks and bonds, and keeping a long-term perspective. While diversification may
not prevent losses in a market downturn, it may help reduce them and keep you on
track to reach your financial goals. You may wish to review your portfolio with
an investment professional.
Thank you for choosing WELLS FARGO FUNDS(R). We appreciate your confidence
in us. Through each market cycle, we are committed to helping you meet your
financial needs. If you have any questions about your investment, 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 STOCK FUNDS PERFORMANCE AT A GLANCE
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WELLS FARGO DIVERSIFIED EQUITY FUND
INVESTMENT OBJECTIVE
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The Wells Fargo Diversified Equity Fund (the Fund) seeks long-term capital
appreciation with moderate annual return volatility by diversifying its
investments among different equity investment styles.
ADVISER MASTER PORTFOLIO SUB-ADVISERS
Wells Fargo Funds Management, Wells Capital Management
LLC Incorporated
Cadence Capital Management
LSV Asset Management
Peregrine Capital Management,
Inc.
Smith Asset Management, LP
Systematic Financial
Management, L.P.
FUND MANAGERS INCEPTION DATE
Collectively Managed 12/31/88
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund's Class A shares returned 14.94%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the S&P 500
Index(2), which returned 14.07%. The Fund's Class A shares distributed $0.26 per
share in dividend income and no capital gains during the period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
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The primary reason for the Fund's strong performance during the period was
the growth in corporate profits worldwide, the low interest rate environment,
and the fact that the Fund is so broadly diversified. Fortune Brands, a U.S.
conglomerate with subsidiaries engaged in the manufacture of home products,
spirits and wine, golf equipment and office products, was one of the Fund's
positive contributors to performance for the six-month period. The stock
appreciated based on anticipation that the company's first quarter results would
be higher than most analysts expected. Microsoft, on the other hand, detracted
significantly from the Fund's performance over the period, based on news of an
unfavorable antitrust ruling in Europe.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
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The Fund is a blend of several investment styles, including international
equity, large company growth, large company value, small company growth and
small company value. Rather than making major shifts in investment styles as the
economy changes, it remains highly diversified and continues to invest in most
of the equity categories.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
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We expect to continue to manage the Fund using a blended approach in which
some investment categories will benefit--and others will decline--depending upon
how the economic scenario plays out. For example, if the economy stumbles, then
stocks that usually benefit from such a scenario, such as food and beverage
stocks, could appreciate in value. If overseas economies continue to recover,
then investors in this Fund would likely benefit from its overseas investments.
While we are not dependent upon economic predictions to make our investment
decisions, we believe it is possible that the U.S. and international economies
will continue to improve and interest rates may rise. Of course, the threat of
global terrorism continues to hang over the markets.
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The views expressed are as of March 31, 2004, 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 Diversified Equity Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway blended Fund that invests all of its assets in two or
more master portfolios of Master Trust in varying proportions. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for the Class A, Class B, Class C and Institutional Class
shares of the Wells Fargo Diversified Equity Fund for periods prior to November
8, 1999, reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Diversified Equity 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 of the Fund prior to May 2, 1996, reflects the
performance of the Institutional Class shares of the Fund, adjusted for Class A
sales charges and expenses. Performance shown for the Class B shares of the Fund
prior to May 6, 1996, reflects the performance of the Institutional Class shares
of the Fund, adjusted for Class B sales charges and expenses. Performance shown
for the Class C shares of the Fund prior to October 1, 1998, reflects the
performance of the Institutional Class shares of the Fund, adjusted for Class C
sales charges and expenses. Performance of the Institutional Class shares of the
Fund prior to November 11, 1994, reflects the performance of a collective
investment fund, adjusted to reflect Institutional Class expenses. Wells Fargo
Bank, N.A., formerly Norwest Bank Minnesota, N.A., managed the collective
investment fund with an investment objective and principal investment strategy
that were substantially similar to those of the Fund. The collective investment
fund's performance was adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 ("1940 Act") nor subject to certain investment
limitations, diversification requirements or other restrictions imposed by the
1940 Act or the Internal Revenue Code, which, if applicable, may have adversely
affected that fund's performance results.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
2
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
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AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
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Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Diversified Equity Fund - Class A 8.33 30.81 (0.68) 9.73 14.94 38.79 0.51 10.38
Wells Fargo Diversified Equity Fund - Class B 9.52 32.77 (0.65) 9.56 14.52 37.77 (0.25) 9.56
Wells Fargo Diversified Equity Fund - Class C 13.48 36.76 (0.26) 9.58 14.48 37.76 (0.26) 9.58
Wells Fargo Diversified Equity Fund -
Institutional Class 15.07 39.16 0.66 10.46
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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.PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD.INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
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Microsoft Corporation 2.10%
Pfizer Incorporated 2.06%
American International Group Incorporated 1.94%
Intel Corporation 1.66%
General Electric Company 1.63%
Cisco Systems Incorporated 1.54%
Exxon Mobil Corporation 1.53%
Citigroup Incorporated 1.50%
JP Morgan Chase & Company 1.30%
eBay Incorporated 1.28%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
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[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 12%
Consumer Staples 7%
Energy 4%
Financial Services 17%
Health Care 10%
Industrials 9%
Information Technology 18%
Basic Materials 3%
Telecommunications Services 2%
Utilities 2%
International 15%
Cash 1%
CHARACTERISTICS(4) (as of March 31, 2004)
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Beta** 0.86
Price to Earnings Ratio (trailing 12 months) 20.89x
Price to Book Ratio 3.17x
Median Market Cap ($B) $24.68
Portfolio Turnover 18%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
WELLS FARGO DIVERSIFIED WELLS FARGO DIVERSIFIED
EQUITY FUND - CLASS A EQUITY FUND - CLASS I S&P 500 Index
----------------------- ----------------------- -------------
3/31/1994 9425 10000 10000
4/30/1994 9528 10109 10128.2
5/31/1994 9614 10200 10293.3
6/30/1994 9303 9871 10041
7/31/1994 9608 10195 10370.8
8/31/1994 10088 10692 10796
9/30/1994 9897 10501 10532
10/31/1994 10077 10692 10768.6
11/30/1994 9700 10292 10376.5
12/31/1994 9830 10430 10530.3
1/31/1995 9938 10544 10803.2
2/28/1995 10248 10873 11223.8
3/31/1995 10579 11225 11554.5
4/30/1995 10862 11525 11894.5
5/31/1995 11198 11881 12369
6/30/1995 11548 12253 12656
7/31/1995 12055 12790 13075.5
8/31/1995 12095 12833 13108.3
9/30/1995 12562 13328 13661.2
10/31/1995 12346 13100 13612.4
11/30/1995 12763 13542 14209.3
12/31/1995 12872 13657 14483
1/31/1996 13239 14046 14975.5
2/29/1996 13487 14310 15114.7
3/31/1996 13666 14500 15259.8
4/30/1996 14048 14905 15484.2
5/31/1996 14373 15245 15882.1
6/30/1996 14321 15195 15942.4
7/31/1996 13625 14456 15237.8
8/31/1996 13903 14751 15559.3
9/30/1996 14646 15539 16433.8
10/31/1996 14744 15644 16887.3
11/30/1996 15671 16627 18162.3
12/31/1996 15506 16447 17802.7
1/31/1997 16257 17249 18915.4
2/28/1997 16253 17244 19062.9
3/31/1997 15592 16543 18281.3
4/30/1997 16248 17239 19370.9
5/31/1997 17356 18409 20548.6
6/30/1997 18168 19272 21469.2
7/31/1997 19423 20608 23176
8/31/1997 18430 19554 21878.2
9/30/1997 19518 20709 23074.9
10/31/1997 18725 19867 22304.2
11/30/1997 19219 20386 23336.9
12/31/1997 19489 20677 23738.3
1/31/1998 19712 20915 23999.4
2/28/1998 21105 22392 25729.8
3/31/1998 22029 23368 27047.1
4/30/1998 22355 23713 27323
5/31/1998 21882 23217 26853
6/30/1998 22583 23961 27943.3
7/31/1998 22192 23546 27647.1
8/31/1998 18919 20073 23652.1
9/30/1998 19890 21103 25168.2
10/31/1998 21221 22516 27214.3
11/30/1998 22482 23853 28863.5
12/31/1998 23845 25300 30526.1
1/31/1999 24534 26025 31802.1
2/28/1999 23824 25277 30813
3/31/1999 24670 26174 32045.6
4/30/1999 25588 27149 33285.7
5/31/1999 25181 26717 32500.2
6/30/1999 26559 28179 34303.9
7/31/1999 26011 27598 33233
8/31/1999 25724 27293 33068.5
9/30/1999 25056 26579 32162.1
10/31/1999 26272 27869 34197.9
11/30/1999 27028 28677 34892.1
12/31/1999 28720 30472 36947.3
1/31/2000 27496 29168 35092.5
2/29/2000 27491 29162 34429.3
3/31/2000 29800 31613 37796.4
4/30/2000 29084 30852 36658.8
5/31/2000 28433 30168 35907.3
6/30/2000 29221 30999 36794.2
7/31/2000 28781 30531 36220.2
8/31/2000 30351 32203 38469.5
9/30/2000 29062 30829 36438.3
10/31/2000 29117 30888 36285.2
11/30/2000 27331 28999 33426
12/31/2000 28178 29892 33589.8
1/31/2001 28634 30375 34782.2
2/28/2001 26338 27945 31613.5
3/31/2001 24503 25999 29612.4
4/30/2001 26465 28087 31910.3
5/31/2001 26520 28158 32124.1
6/30/2001 25846 27443 31343.5
7/31/2001 25457 27037 31036.3
8/31/2001 24218 25728 29096.6
9/30/2001 22068 23447 26748.5
10/31/2001 22633 24053 27259.4
11/30/2001 24242 25767 29350.2
12/31/2001 24606 26166 29608.4
1/31/2002 24230 25767 29176.2
2/28/2002 23756 25269 28613
3/31/2002 24779 26363 29688.9
4/30/2002 23854 25380 27889.8
5/31/2002 23546 25059 27686.2
6/30/2002 22166 23592 25714.9
7/31/2002 20010 21305 23711.7
8/31/2002 20096 21403 23865.8
9/30/2002 17866 19025 21274
10/31/2002 19215 20473 23144
11/30/2002 20300 21633 24504.9
12/31/2002 19163 20420 23066.4
1/31/2003 18532 19754 22464.4
2/28/2003 18143 19345 22127.4
3/31/2003 18229 19437 22339.8
4/30/2003 19725 21040 24180.7
5/31/2003 20869 22267 25452.6
6/30/2003 21209 22629 25778.3
7/31/2003 21802 23269 26232.1
8/31/2003 22229 23731 26743.6
9/30/2003 22013 23507 26460.1
10/31/2003 23360 24951 27955.1
11/30/2003 23614 25228 28201.1
12/31/2003 24734 26429 29678.8
1/31/2004 25132 26862 30224.9
2/29/2004 25487 27241 30645
3/31/2004 25300 27048 30182.3
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(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Diversified Equity
Fund Class A and Institutional Class shares for the most recent ten years with
the S&P 500 Index. The chart assumes a hypothetical investment of $10,000 in
Class A and Institutional Class shares and reflects all operating expenses
and, for Class A shares, assumes the maximum initial sales charge of 5.75%.
3
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
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WELLS FARGO DIVERSIFIED SMALL CAP FUND
INVESTMENT OBJECTIVE
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The Wells Fargo Diversified Small Cap Fund (the Fund) seeks long-term
capital appreciation with moderate annual return volatility by
diversifying its investments across different small-capitalization equity
investment styles.
ADVISER MASTER PORTFOLIO SUB-ADVISERS
Wells Fargo Funds Management, Wells Capital Management
LLC Incorporated Peregrine Capital
Management, Inc.
FUND MANAGERS INCEPTION DATE
Collectively Managed 12/31/97
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
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The Fund returned 19.85%(1) for the six-month period ended March 31, 2004,
underperforming the Russell 2000(R) Index(2), which returned 21.69%. The Fund
distributed no dividend income and $0.08 per share in capital gains during the
period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
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The strong growth evident in the second half of 2003 continued into 2004,
spurred by low interest rates and tax cuts that boosted mortgage refinancing and
consumer spending. The Fund's strongest small cap performers for the six-month
period were holdings in the financial services sector, which were helped by
lower interest rates. Higher oil prices benefited energy stocks, which also
contributed to Fund performance during the reporting period. The Fund's exposure
to small-cap growth stocks, such as Asyst Technologies and McDermott
International, hurt performance, while the Fund's exposure to small-cap value
stocks, such as Joy Global and GrafTech International, helped performance, as
value investing was more in favor during the six-month period.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
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Within the small cap value portion of the portfolio, we began to see
weakness in the financial services sector, primarily in the regional bank area,
as valuations neared their highs. We also de-emphasized the utilities sector, as
these stocks had been pushed higher after the recent dividend tax cuts took
effect and investors actively sought higher-yielding stocks. The Fund emphasizes
technology and cyclical companies, areas that are most sensitive to and likely
to be impacted by the economic recovery.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Corporate earnings could surpass expectations because, since the market
peak of 2000, both corporate managers and Wall Street analysts have been
conservative in their forecasts. Uncertainty about how noneconomic factors such
as the presidential election and the risk of terrorist strikes, however, may
negatively impact corporate earnings this year. The Fund is invested in
companies, identified through our bottom-up research process, that are
characterized by encouraging growth prospects or underutilized assets.
Importantly, these companies are selling at a discount to what we estimate to be
their fair value, giving them significant upside potential.
There are additional risks associated with investments in smaller and/or
newer companies because their shares tend to be less liquid than securities of
larger companies. Further, shares of small and new companies are generally more
sensitive to purchase and sale transactions and changes in the issuer's
financial condition and, therefore, the prices of such stocks may be more
volatile than those of larger company stocks.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Diversified Small Cap Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway blended Fund that invests all of its assets in two or
more master portfolios of Master Trust in varying proportions. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for the Institutional Class shares of the Wells Fargo
Diversified Small Cap Fund for periods prior to November 8, 1999, reflects
performance of the Institutional Class shares of the Norwest Advantage
Diversified Small Cap 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.
(2) The Russell 2000(R) Index is an unmanaged index that measures the
performance of the 2,000 companies that are between the 1000th and 3000th
largest in the market. You cannot invest directly in an index.
4
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Excluding Sales Charge
-----------------------------------------
6-Month* 1-Year 5-Year Life of Fund
-------- ------ ------ ------------
Wells Fargo Diversified Small Cap Fund - Institutional Class 19.85 59.05 12.60 6.42
Benchmark
Russell 2000(R) Index 21.69 63.83 9.66 6.26
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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 MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE - WWW.
WELLSFARGOFUNDS. COM.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
CKE Restaurants Incorporated 0. 62%
Gaylord Entertainment Company 0. 61%
URS Corporation 0. 58%
THQ Incorporated 0. 58%
NBTY Incorporated 0. 57%
Joy Global Incorporated 0. 55%
WCI Communities Incorporated 0. 54%
Steel Dynamics Incorporated 0. 53%
Brink's Company 0. 53%
Massey Energy Company 0. 51%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 19%
Consumer Staples 3%
Energy 4%
Financial Services 16%
Health Care 12%
Industrials 17%
Information Technology 19%
Basic Materials 6%
Utilities 2%
Cash 2%
CHARACTERISTICS(4) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.06
Price to Earnings Ratio (trailing 12 months) 18.97x
Price to Book Ratio 2.2x
Median Market Cap ($B) $ 0.76
Portfolio Turnover 37%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Diversified
Small Cap Fund - Class I Russell 2000 Index
------------------------ ------------------
12/31/97 10000 10000
1/31/98 9880 9842
2/28/98 10690 10569.3
3/31/98 11170 11004.8
4/30/98 11220 11065.3
5/31/98 10520 10468.9
6/30/98 10450 10490.9
7/31/98 9660 9641.11
8/31/98 7600 7768.81
9/30/98 7970 8377.1
10/31/98 8320 8718.89
11/30/98 8750 9175.76
12/31/98 9140 9743.74
1/31/99 9040 9873.33
2/28/99 8260 9073.59
3/31/99 8150 9215.14
4/30/99 8720 10040.8
5/29/99 8990 10187.4
6/30/99 9500 10647.9
7/31/99 9450 10356.1
8/31/99 9070 9972.95
9/30/99 9020 9974.95
10/31/99 9020 10015.8
11/30/99 9370 10613.8
12/31/99 10040 11815.3
1/31/00 9570 11625
2/29/00 10400 13544.3
3/31/00 10760 12651.8
4/30/00 10690 11890.1
5/31/00 10350 11196.9
6/30/00 10810 12173.3
7/31/00 10520 11781.3
8/31/00 11440 12680.2
9/30/00 11180 12307.5
10/31/00 11090 11758.5
11/30/00 10180 10550.9
12/31/00 11219 11457.3
1/31/01 11475 12054.2
2/28/01 11016 11263.4
3/31/01 10516 10712.7
4/30/01 11261 11550.4
5/31/01 11507 11834.5
6/30/01 11805 12242.8
7/31/01 11549 11580.5
8/31/01 11208 11206.4
9/30/01 9781 9698.04
10/31/01 10143 10265.4
11/30/01 10890 11059.9
12/31/01 11452 11742.3
1/31/02 11560 11620.2
2/28/02 11506 11301.8
3/31/02 12411 12210.5
4/30/02 12691 12321.6
5/31/02 12239 11774.5
6/30/02 11776 11190.5
7/31/02 10020 9500.72
8/31/02 10095 9476.97
9/30/02 9373 8796.52
10/31/2002 9621 9078.89
11/30/2002 10149 9888.73
12/31/2002 9786 9337.92
1/31/2003 9449 9079.26
2/28/2003 9144 8805.07
3/31/03 9275 8918.65
4/30/03 10036 9764.14
5/31/03 10993 10811.8
6/30/03 11275 11007.5
7/31/03 12015 11696.6
8/31/03 12569 12232.3
9/30/03 12308 12006
10/31/03 13254 13014.5
11/30/03 13657 13476.5
12/31/03 14084 13750.1
1/31/04 14467 14346.9
2/29/04 14599 14476
3/31/04 14752 14610.6
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Diversified Small Cap
Fund Institutional Class shares for the life of the Fund with the Russell
2000(R) Index. The chart assumes a hypothetical investment of $10, 000 in
Institutional Class shares and reflects all operating expenses.
5
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO EQUITY INCOME FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Equity Income Fund (the Fund) seeks long-term capital
appreciation and above-average dividend income.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
David L. Roberts, CFA 03/31/89
Gary J. Dunn, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 16.88%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the S&P 500
Index(2), which returned 14.07% and underperforming the Russell 1000 Value(R)
Index(3), which returned 17.65%. The Fund's Class A shares distributed $0.23 per
share in dividend income and $1.40 per share in capital gains during the period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The consumer sectors, both discretionary and staples, made the largest
positive contribution to Fund performance. A number of the Fund's holdings in
consumer stocks had returns in the range of 20% to 40% over the past six months.
May Department Stores continued to recover from a difficult retail environment.
Target benefited from strong fourth quarter results, as well as the potential
spin-off of their Mervyn's and Marshall Fields divisions. McDonald's renewed its
focus on its core businesses, leading to significant improvement in operating
results. Fortune Brands pre-announced first quarter results would be much higher
than expected, up at least 19%. PepsiCo had a great fourth quarter, increased
the outlook for their first quarter and full year of 2004, and increased their
dividend 44%. Motorola shares jumped nearly 50% as operating results improved.
The Fund's weaker sectors were health care and materials. The decision to
discontinue further development of two major drugs negatively impacted Merck's
performance. The somewhat slower than expected economic recovery affected
materials companies.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
In an effort to improve diversification, as well as reduce risk, we
established initial positions in the following stocks: Allstate, ConocoPhillips,
FPL Group, Kimberly-Clark, Nokia, Wachovia and Microsoft. We eliminated
positions in Sears Roebuck and Duke Energy over concerns about the companies'
growth prospects. We also sold our holding of Schlumberger due to its
appreciated stock price that had reached the high end of our valuation range.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe that the Fund remains attractive on a fundamental basis. The
current dividend yield is about 50% higher than the market as a whole.
Valuations are still reasonable despite a nearly 40% advance over the past year.
We believe that the Fund's focus on large cap, high quality dividend paying
stocks could provide investors competitive total returns with potentially less
risk.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Equity Income Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Performance shown for Class A, Class B, Class C and Institutional Class
shares of the Wells Fargo Equity Income Fund for periods prior to November 8,
1999, reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Income Equity Fund (the accounting
survivor of a merger of the Norwest Advantage Income Equity Fund and the
Stagecoach Diversified Equity 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 A and Class B shares of the Fund prior to May 2, 1996, reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class A and Class B sales charges and expenses, respectively. Performance shown
for the Class C shares of the Fund prior to October 1, 1998, reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class C sales charges and expenses. Performance of the Institutional Class
shares of the Fund prior to November 11, 1994, reflects the performance of a
collective investment fund, adjusted to reflect Institutional Class expenses.
Wells Fargo Bank, N.A., formerly Norwest Bank Minnesota, N.A., managed the
collective investment fund with an investment objective and principal investment
strategy that were substantially similar to those of the Fund. The collective
investment fund's performance was adjusted to reflect the Fund's 1994 estimate
of its expense ratio for the first year of operations as a mutual fund,
including any applicable sales load (without giving effect to any fee waivers or
expense reimbursements). The collective investment fund was not registered under
the Investment Company Act of 1940 ("1940 Act") nor subject to certain
investment limitations, diversification requirements or other restrictions
imposed by the 1940 Act or the Internal Revenue Code, which, if applicable, may
have adversely affected the performance results.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The Russell 1000 Value Index(R) measures the performance of those Russell
1000 companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an index.
6
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Equity Income Fund - Class A 10.16 30.36 (0.36) 10.88 16.88 38.31 0.83 11.53
Wells Fargo Equity Income Fund - Class B 11.44 32.26 (0.34) 10.70 16.44 37.26 0.07 10.70
Wells Fargo Equity Income Fund - Class C 15.43 36.30 0.08 10.70 16.43 37.30 0.08 10.70
Wells Fargo Equity
Income Fund - Institutional Class 17.02 38.62 1.04 11.65
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 11.68
Russell 1000 Value(R) Index 17.65 40.82 3.89 12.61
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGE ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Fortune Brands Incorporated 3.86%
Pepsico Incorporated 3.78%
JP Morgan Chase & Company 3.75%
Hewlett-Packard Company 3.64%
Exxon Mobil Corporation 3.62%
International Business Machines Corporation 3.46%
US Bancorp 3.28%
American Express Company 3.19%
Emerson Electric Company 3.18%
Sara Lee Corporation 2.98%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Staples 12%
Consumer Discretionary 13%
Energy 10%
Financial Services 24%
Health Care 7%
Industrials 10%
Information Technology 11%
Basic Materials 5%
Telecommunications Services 4%
Utilities 4%
CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.84
Price to Earnings Ratio (trailing 12 months) 17.4x
Price to Book Ratio 2.9x
Median Market Cap ($B) $57.4
Portfolio Turnover 8%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Equity Wells Fargo Equity S&P 500 Russell 1000
Income Fund - Class A Income Fund - Class I Index Value Index
--------------------- --------------------- ------- ------------
3/31/94 9425 10000 10000 10000
4/30/94 9559 10142 10128.2 10192
5/31/94 9805 10403 10293.3 10310.2
6/30/94 9572 10156 10041 10062.8
7/31/94 9839 10439 10370.8 10375.7
8/31/94 10479 11119 10796 10674.6
9/30/94 10307 10936 10532 10321.2
10/31/94 10509 11150 10768.6 10464.7
11/30/94 10204 10827 10376.5 10043
12/31/94 10331 10961 10530.3 10159.5
1/31/95 10634 11283 10803.2 10472.4
2/28/95 11092 11768 11223.8 10887.1
3/31/95 11389 12084 11554.5 11126.6
4/28/95 11737 12453 11894.5 11478.2
5/31/95 12183 12926 12369 11960.3
6/30/95 12266 13014 12656 12121.8
7/31/95 12580 13348 13075.5 12543.6
8/31/95 12641 13412 13108.3 12720.5
9/29/95 13302 14114 13661.2 13180.9
10/31/95 13242 14049 13612.4 13050.4
11/30/95 13964 14816 14209.3 13710.8
12/29/95 14301 15173 14483 14054.9
1/31/96 14806 15709 14975.5 14493.4
2/29/96 14890 15798 15114.7 14603.6
3/31/96 15064 15983 15259.8 14851.8
4/30/96 15281 16213 15484.2 14908.3
5/31/96 15644 16598 15882.1 15094.6
6/30/96 15814 16773 15942.4 15106.7
7/31/96 15182 16108 15237.8 14535.7
8/31/96 15387 16326 15559.3 14951.4
9/30/96 16066 17046 16433.8 15546.5
10/31/96 16369 17368 16887.3 16148.1
11/30/96 17520 18595 18162.3 17318.9
12/31/96 17196 18245 17802.7 17097.2
1/31/97 18046 19141 18915.4 17926.4
2/28/97 18305 19421 19062.9 18189.9
3/31/97 17728 18810 18281.3 17535.1
4/30/97 18300 19416 19370.9 18271.6
5/31/97 19149 20317 20548.6 19292.9
6/30/97 19968 21180 21469.2 20120.6
7/31/97 21290 22583 23176 21633.7
8/31/97 20259 21489 21878.2 20863.5
9/30/97 21284 22583 23074.9 22123.7
10/31/97 20624 21883 22304.2 21506.4
11/30/97 21608 22927 23336.9 22457
12/31/97 22023 23360 23738.3 23112.7
1/31/98 22053 23398 23999.4 22784.5
2/28/98 23531 24966 25729.8 24317.9
3/31/98 24770 26281 27047.1 25806.2
4/30/98 24997 26516 27323 25979.1
5/31/98 24632 26129 26853 25594.6
6/30/98 25024 26544 27943.3 25922.2
7/31/98 24310 25793 27647.1 25466
8/31/98 21257 22548 23652.1 21676.6
9/30/98 22429 23797 25168.2 22920.9
10/31/98 24024 25483 27214.3 24697.2
11/30/98 25153 26681 28863.5 25848.1
12/31/98 25946 27530 30526.1 26727
1/31/99 25873 27452 31802.1 26940.8
2/28/99 25934 27510 30813 26560.9
3/31/99 26947 28585 32045.6 27110.7
4/30/99 28337 30066 33285.7 29642.9
5/29/99 28264 29982 32500.2 29316.8
6/30/99 29422 31217 34303.9 30167
7/31/99 28640 30387 33233 29283.1
8/31/99 28163 29875 33068.5 28196.7
9/30/99 27088 28734 32162.1 27212.6
10/31/99 27836 29528 34197.9 28780.1
11/30/99 28045 29756 34892.1 28555.6
12/31/99 28091 29810 36947.3 28692.7
1/31/00 26675 28313 35092.5 27757.3
2/29/00 24635 26156 34429.3 25694.9
3/31/00 27098 28780 37796.4 28829.7
4/30/00 26966 28645 36658.8 28495.3
5/31/00 27407 29115 35907.3 28794.5
6/30/00 26765 28438 36794.2 27478.6
7/31/00 26228 27873 36220.2 27822.1
8/31/00 27700 29444 38469.5 29369
9/30/00 27404 29135 36438.3 29639.1
10/31/00 28135 29919 36285.2 30368.3
11/30/00 27146 28874 33426 29241.6
12/31/00 28553 30377 33589.8 30706.6
1/31/01 28533 30362 34782.2 30823.3
2/28/01 27694 29477 31613.5 29966.4
3/31/01 26142 27829 29612.4 28908.6
4/30/01 27882 29689 31910.3 30325.1
5/31/01 28382 30221 32124.1 31007.4
6/30/01 27552 29348 31343.5 30319.1
7/31/01 27251 29035 31036.3 30255.4
8/31/01 26670 28423 29096.6 29042.2
9/30/01 24947 26585 26748.5 26997.6
10/31/01 25256 26928 27259.4 26765.4
11/30/01 26622 28381 29350.2 28320.5
12/31/01 26933 28722 29608.4 28988.9
1/31/02 26540 28310 29176.2 28765.6
2/28/02 26692 28479 28613 28811.7
3/31/02 27570 29425 29688.9 30174.4
4/30/02 26707 28504 27889.8 29139.5
5/31/02 26686 28489 27686.2 29285.2
6/30/02 25265 26983 25714.9 27604.2
7/31/02 22940 24499 23711.7 25037
8/31/02 23043 24617 23865.8 25227.3
9/30/02 19998 21365 21274 22422
10/31/2002 21474 22942 23144 24083.5
11/30/2002 22740 24311 24504.9 25600.7
12/31/2002 21575 23069 23066.4 24489.7
1/31/2003 20907 22354 22464.4 23897
2/28/2003 20262 21671 22127.4 23259
3/31/2003 20301 21718 22339.8 23298.5
4/30/03 21931 23464 24180.7 25348.8
5/31/03 23219 24842 25452.6 26986.3
6/30/03 23685 25354 25778.3 27323.6
7/31/03 24105 25812 26232.1 27733.5
8/31/03 24212 25927 26743.6 28166.1
9/30/03 24023 25727 26460.1 27890.1
10/31/03 25388 27200 27955.1 29597
11/30/03 25657 27496 28201.1 29999.5
12/31/03 27186 29130 29678.8 31847.5
1/31/04 27660 29647 30224.9 32408
2/29/04 28399 30449 30645 33101.5
3/31/04 28079 30105 30182.3 32810.2
- --------------------------------------------------------------------------------
(4) The ten largest equity holdings are calculated based on the market
value of the Master Trust portfolio securities allocable to the Fund
divided by total market value of the portfolio of investments of the Fund.
See Notes to the Financial Statements for a discussion of the Master Trust.
(5)Sector distribution and portfolio characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Equity Income
Fund Class A and Institutional Class shares for the most recent ten years
with the S&P 500 Index and the Russell 1000 Value(R) Index. The chart
assumes a hypothetical investment of $10,000 in Class A and Institutional
Class shares and reflects all operating expenses and, for Class A shares,
assumes the maximum initial sales charge of 5.75%.
7
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO EQUITY INDEX FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Equity Index Fund (the Fund) seeks to approximate to the
extent practicable the total rate of return of substantially all common
stocks comprising the S&P 500 Index(1) before fees and expenses.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Laurie R. White 01/25/84
Gregory T. Genung, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 13.69%(2) for the six-month period
ended March 31, 2004, excluding sales charges, underperforming the S&P 500
Index(1) (the Index), which returned 14.07% during the period. The Fund's Class
A shares distributed $0.50 per share in dividend income and $1.31 per share in
capital gains during the period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's goal is to approximate the total rate of return of the Index
less expenses. The Fund was positively affected by the low interest rate
environment, low inflation and positive economic growth. Overall equity
performance, however, was hindered by the lagging economic recovery. During the
reporting period, the Index overcame a setback in March 2004 to post its fourth
straight quarterly gain.
The best-performing sectors within the Index tended to be those that would
typically benefit from accelerating economic growth. During the second half of
the period the more stable, "defensive" sectors of the market led the way, a
pattern that may continue if interest rates begin a more sustained rise later
this year. The consumer staples sector turned in a strong performance, while
higher oil prices and lower interest rates provided good support to energy and
financial services stocks, respectively. Broadly speaking, small cap stocks
outperformed mid cap stocks, which, in turn, outperformed the large cap stocks
that comprise the Index.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Earnings of stocks within the Index may continue to grow throughout 2004,
as economic fundamentals are falling into place for a more sustained stock rally
in the months ahead. Upbeat economic reports have lent support to analysts'
double-digit growth forecast for corporate profits through late 2004. We believe
that exports, inventory building and other investment spending could add
support, benefiting from a slow but steady improvement in business pricing
power. This could negatively impact the economy, however, because of its
potential to contribute to inflation and worsen the outlook on interest rates
later this year. Any future rise in interest rates this year may be gradual by
historic standards, reflecting solid but unspectacular growth and only a gradual
turn toward higher inflation.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Equity Index Fund.
(1) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(2) The Fund's Adviser has committed through January 31, 2005, 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 Class B shares of the Wells Fargo Equity
Index Fund for periods prior to November 8, 1999, reflects performance of the
Class A and Class B shares of the Stagecoach Equity Index 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 Class A shares for periods prior to December 12, 1997, reflects
performance of the Stagecoach Corporate Stock Fund, a predecessor portfolio with
the same investment objectives and policies as the Fund. Performance shown for
the Class B shares prior to February 17, 1998, reflects performance of the Class
A shares, adjusted for Class B sales charges and expenses.
8
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Equity Index Fund - Class A 7.15 26.50 (3.00) 10.12 13.69 34.21 (1.84) 10.77
Wells Fargo Equity Index Fund - Class B 8.26 28.22 (3.03) 10.03 13.26 33.22 (2.58) 10.03
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE FOR CLASS B SHARES IS 5.00%. PERFORMANCE
INCLUDING SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING
TIME PERIOD.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
General Electric Company 2.85%
Exxon Mobil Corporation 2.50%
Microsoft Corporation 2.47%
Pfizer Incorporated 2.45%
Citigroup Incorporated 2.44%
Wal-Mart Stores Incorporated 2.37%
American International Group Incorporated 1.70%
Intel Corporation 1.62%
Cisco Systems Incorporated 1.48%
International Business Machines Corporation 1.43%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Staples 11%
Consumer Discretionary 11%
Energy 6%
Financial Services 21%
Health Care 13%
Industrials 10%
Information Technology 17%
Basic Materials 3%
Telecommunications Services 3%
Utilities 3%
Cash 2%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.00
Price to Earnings Ratio (trailing 12 months) 20.10x
Price to Book Ratio 3.03x
Median Market Cap.($B) $9.40
5-Year Earnings Growth (historic) 7.88%
Portfolio Turnover 1%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Equity
Index Fund - Class A S&P 500 Index
-------------------- -------------
9/30/93 10000 10000
3/31/94 9426 10000
4/30/94 9540 10128.2
5/31/94 9686 10293.3
6/30/94 9445 10041
7/31/94 9746 10370.8
8/31/94 10133 10796
9/30/94 9882 10532
10/31/94 10093 10768.6
11/30/94 9722 10376.5
12/31/94 9858 10530.3
1/31/95 10102 10803.2
2/28/95 10488 11223.8
3/31/95 10787 11554.5
4/28/95 11093 11894.5
5/31/95 11524 12369
6/30/95 11779 12656
7/31/95 12159 13075.5
8/31/95 12181 13108.3
9/29/95 12679 13661.2
10/31/95 12629 13612.4
11/30/95 13165 14209.3
12/29/95 13406 14483
1/31/96 13849 14975.5
2/29/96 13968 15114.7
3/31/96 14092 15259.8
4/30/96 14287 15484.2
5/31/96 14637 15882.1
6/30/96 14682 15942.4
7/31/96 14025 15237.8
8/31/96 14304 15559.3
9/30/96 15095 16433.8
10/31/96 15497 16887.3
11/30/96 16646 18162.3
12/31/96 16309 17802.7
1/31/97 17304 18915.4
2/28/97 17425 19062.9
3/31/97 16699 18281.3
4/30/97 17679 19370.9
5/31/97 18736 20548.6
6/30/97 19569 21469.2
7/31/97 21087 23176
8/31/97 19896 21878.2
9/30/97 20964 23074.9
10/31/97 20251 22304.2
11/30/97 21163 23336.9
12/31/97 21510 23738.3
1/31/98 21736 23999.4
2/28/98 23288 25729.8
3/31/98 24462 27047.1
4/30/98 24695 27323
5/31/98 24253 26853
6/30/98 25237 27943.3
7/31/98 24954 27647.1
8/31/98 21342 23652.1
9/30/98 22696 25168.2
10/31/98 24507 27214.3
11/30/98 25978 28863.5
12/31/98 27462 30526.1
1/31/99 28587 31802.1
2/28/99 27686 30813
3/31/99 28773 32045.6
4/30/99 29871 33285.7
5/29/99 29148 32500.2
6/30/99 30739 34303.9
7/31/99 29769 33233
8/31/99 29607 33068.5
9/30/99 28782 32162.1
10/31/99 30591 34197.9
11/30/99 31180 34892.1
12/31/99 32987 36947.3
1/31/00 31310 35092.5
2/29/00 30702 34429.3
3/31/00 33664 37796.4
4/30/00 32631 36658.8
5/31/00 31942 35907.3
6/30/00 32704 36794.2
7/31/00 32202 36220.2
8/31/00 34177 38469.5
9/30/00 32359 36438.3
10/31/00 32202 36285.2
11/30/00 29649 33426
12/31/00 29783 33589.8
1/31/01 30820 34782.2
2/28/01 28022 31613.5
3/31/01 26232 29612.4
4/30/01 28262 31910.3
5/31/01 28436 32124.1
6/30/01 27726 31343.5
7/31/01 27439 31036.3
8/31/01 25705 29096.6
9/30/01 23613 26748.5
10/31/01 24054 27259.4
11/30/01 25883 29350.2
12/31/01 26097 29608.4
1/31/02 25700 29176.2
2/28/02 25196 28613
3/31/02 26126 29688.9
4/30/02 24525 27889.8
5/31/02 24334 27686.2
6/30/02 22580 25714.9
7/31/02 20822 23711.7
8/31/02 20944 23865.8
9/30/02 18657 21274
10/31/02 20293 23144
11/30/02 21468 24504.9
12/31/02 20201 23066.4
1/31/03 19662 22464.4
2/28/03 19357 22127.4
3/31/03 19533 22339.8
4/30/03 21132 24180.7
5/31/03 22230 25452.6
6/30/03 22504 25778.3
7/31/03 22887 26232.1
8/31/03 23316 26743.6
9/30/03 23058 26460.1
10/31/03 24346 27955.1
11/30/03 24548 28201.1
12/31/03 25817 29678.8
1/31/04 26280 30224.9
2/29/04 26629 30645
3/31/04 26215 30182.3
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
(4) Sector distribution and Fund characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Equity Index Fund
Class A shares for the most recent ten years with the S&P 500 Index. The chart
assumes a hypothetical investment of $10,000 in Class A shares and reflects all
operating expenses while assuming the maximum initial sales charge of 5.75%.
9
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Growth Fund (the Fund) seeks long-term capital
appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Deborah Meacock, CFA 08/02/90
Stephen M. Kensinger, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 11.75%(1) for the six-month period
ended March 31, 2004, excluding sales charges, under performing the S&P 500
Index(2), which returned 14.07%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund lagged behind the broader market primarily because value stocks
continued to outperform growth stocks. Evidence of economic strength finally
appeared during the period, as corporate profits exhibited strong growth,
non-farm payroll rose for the first time in eight months, retail same-store
sales rose nearly 6%--the best in 18 months--and third quarter Gross Domestic
Product growth came in at 8.2%, the fastest since 1984. Positive news continued
to be reported through February 2004, as corporate profit reports met or
exceeded expectations. However, in March, the market lost steam with worries
over whether the economic recovery could continue without significant job
creation.
The most significant contributors to Fund performance were holdings from a
diverse array of industries including biotechnology, financial services, oil and
restaurants. In particular, Boston Scientific benefited from the approval and
immediate successful launch of its cardiac stent device; Starbucks benefited
from the company's phenomenal sales growth; Suncor Energy benefited from the
spike in oil prices; and Goldman Sachs was a major beneficiary of the pickup in
merger and acquisition activity.
The largest detractors from Fund performance were Amgen, the large
biotechnology company, whose stock price fell following good performance earlier
in 2003, and Microsoft, which remains under a cloud of unresolved
anti-competitive issues in Europe and is experiencing delays in its next
generation of software.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Fund made changes to its portfolio holdings by reducing its investment
in financial stocks, particularly those most likely impacted by rising interest
rates, which we believe may happen later in the year. In addition, the Fund
increased its holdings in innovative health care companies, selective retailers
and multinational industrial companies that may benefit from the weak U.S.
dollar.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We continue to believe that market leadership will be with strong, global
industrial companies, technology and health care. If strength continues into the
second half of 2004, we would need to be watchful for inflation and rising
interest rates. A rising rate environment would favor high-quality, stable
companies over smaller, riskier businesses.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Growth Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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 Growth Fund for periods prior to November 8, 1999,reflects
performance of the Class A, Class B and Institutional Class shares of the
Stagecoach Growth Fund (the accounting survivor of a merger of the Stagecoach
Growth Fund and the Norwest Advantage ValuGrowth Stock 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 B shares of the Fund for the period from January 1, 1992, to
January 1, 1995,reflects performance of the Class A shares of the Fund, with
expenses of the Class A shares adjusted to reflect Class B sales charges and
expenses. Performance shown for the Institutional Class shares of the Fund prior
to September 6, 1996, reflects performance of the Fund's Class A shares.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
10
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Growth Fund - Class A 5.31 18.31 (6.91) 6.27 11.75 25.55 (5.80) 6.90
Wells Fargo Growth Fund - Class B 6.40 19.77 (7.02) 6.19 11.40 24.77 (6.49) 6.19
Wells Fargo Growth Fund - Institutional Class 11.87 25.92 (5.67) 6.99
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. PERFORMANCE
INCLUDING SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING
TIME PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
General Electric Company 4.02%
Boston Scientific Corporation 3.66%
Intel Corporation 3.24%
Pfizer Incorporated 3.01%
Cisco Systems Incorporated 2.90%
Medtronic Incorporated 2.75%
Starbucks Corporation 2.62%
Goldman Sachs Group Incorporated 2.61%
Citigroup Incorporated 2.53%
Apollo Group Incorporated Class A 2.44%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 14%
Consumer Staples 10%
Energy 3%
Financial Services 10%
Health Care 27%
Industrials 9%
Information Technology 24%
Basic Materials 2%
Cash 1%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.85
Price to Earnings Ratio (trailing 12 months) 29.10x
Price to Book Ratio 4.66x
Median Market Cap.($B) $31.79
Portfolio Turnover 30%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Wells Fargo
Growth Fund - Class A Growth Fund - Class I S&P 500 Index
--------------------- --------------------- --------------
3/31/94 9428 10000 10000
4/30/94 9541 10120 10128.2
5/31/94 9534 10113 10293.3
6/30/94 9318 9884 10041
7/31/94 9605 10188 10370.8
8/31/94 9913 10514 10796
9/30/94 9788 10382 10532
10/31/94 9869 10467 10768.6
11/30/94 9567 10147 10376.5
12/31/94 9753 10344 10530.3
1/31/95 9801 10396 10803.2
2/28/95 10271 10895 11223.8
3/31/95 10490 11127 11554.5
4/28/95 10643 11289 11894.5
5/31/95 11135 11811 12369
6/30/95 11404 12096 12656
7/31/95 11738 12450 13075.5
8/31/95 11919 12642 13108.3
9/29/95 12328 13076 13661.2
10/31/95 11944 12669 13612.4
11/30/95 12419 13173 14209.3
12/29/95 12571 13334 14483
1/31/96 12848 13628 14975.5
2/29/96 13343 14153 15114.7
3/31/96 13373 14184 15259.8
4/30/96 13847 14687 15484.2
5/31/96 14211 15074 15882.1
6/30/96 13903 14746 15942.4
7/31/96 13041 13832 15237.8
8/31/96 13446 14262 15559.3
9/30/96 14137 14968 16433.8
10/31/96 14587 15446 16887.3
11/30/96 15542 16457 18162.3
12/31/96 15302 16199 17802.7
1/31/97 16262 17215 18915.4
2/28/97 15810 16743 19062.9
3/31/97 15247 16153 18281.3
4/30/97 15914 16863 19370.9
5/31/97 16963 17982 20548.6
6/30/97 17348 18386 21469.2
7/31/97 18836 19967 23176
8/31/97 17714 18781 21878.2
9/30/97 18434 19543 23074.9
10/31/97 17845 18924 22304.2
11/30/97 18123 19226 23336.9
12/31/97 18217 19328 23738.3
1/31/98 18542 19663 23999.4
2/28/98 19600 20788 25729.8
3/31/98 20531 21785 27047.1
4/30/98 20680 21936 27323
5/31/98 20355 21592 26853
6/30/98 21363 22663 27943.3
7/31/98 21223 22520 27647.1
8/31/98 18208 19321 23652.1
9/30/98 19077 20239 25168.2
10/31/98 20670 21933 27214.3
11/30/98 22048 23400 28863.5
12/31/98 23540 24979 30526.1
1/31/99 24427 25928 31802.1
2/28/99 23616 25067 30813
3/31/99 24778 26311 32045.6
4/30/99 25502 27085 33285.7
5/29/99 24680 26213 32500.2
6/30/99 26140 27756 34303.9
7/31/99 25394 26973 33233
8/31/99 25426 27002 33068.5
9/30/99 24713 26248 32162.1
10/31/99 26162 27796 34197.9
11/30/99 26685 28350 34892.1
12/31/99 28506 30291 36947.3
1/31/00 27193 28900 35092.5
2/29/00 27032 28721 34429.3
3/31/00 29460 31312 37796.4
4/30/00 28295 30078 36658.8
5/31/00 27527 29270 35907.3
6/30/00 28555 30359 36794.2
7/31/00 28246 30033 36220.2
8/31/00 30042 31952 38469.5
9/30/00 28270 30067 36438.3
10/31/00 27391 29136 36285.2
11/30/00 24405 25972 33426
12/31/00 24556 26128 33589.8
1/31/01 24958 26562 34782.2
2/28/01 22470 23917 31613.5
3/31/01 20755 22083 29612.4
4/30/01 22563 24015 31910.3
5/31/01 22609 24071 32124.1
6/30/01 21790 23189 31343.5
7/31/01 21234 22615 31036.3
8/31/01 19518 20782 29096.6
9/30/01 18019 19186 26748.5
10/31/01 18498 19690 27259.4
11/30/01 19920 21216 29350.2
12/31/01 19920 21216 29608.4
1/31/02 19194 20446 29176.2
2/28/02 18607 19816 28613
3/31/02 19317 20586 29688.9
4/30/02 18437 19634 27889.8
5/31/02 18328 19536 27686.2
6/30/02 17308 18445 25714.9
7/31/02 15377 16388 23711.7
8/31/02 15438 16444 23865.8
9/30/02 14511 15464 21274
10/31/2002 15346 16346 23144
11/30/2002 15500 16513 24504.9
12/31/2002 14681 15660 23066.4
1/31/2003 14434 15380 22464.4
2/28/2003 14341 15296 22127.4
3/31/2003 14635 15604 22339.8
4/30/03 15361 16388 24180.7
5/31/03 15902 16961 25452.6
6/30/03 15902 16961 25778.3
7/31/03 16458 17563 26232.1
8/31/03 16876 18025 26743.6
9/30/03 16443 17563 26460.1
10/31/03 17540 18739 27955.1
11/30/03 17617 18809 28201.1
12/31/03 18081 19326 29678.8
1/31/04 18328 19592 30224.9
2/29/04 18421 19690 30645
3/31/04 18375 19648 30182.3
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
securities divided by total market value of the Fund.
(4) Sector distribution and Fund characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Growth Fund Class A
and Institutional Class shares for the most recent ten years with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
11
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO GROWTH EQUITY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Growth Equity Fund (the Fund) seeks a high level of
long-term capital appreciation with moderate annual return volatility by
diversifying its investments among different equity investment styles.
ADVISER MASTER PORTFOLIO SUB-ADVISERS
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
LSV Asset Management
Peregrine Capital
Management, Inc.
Smith Asset Management, LP
FUND MANAGERS INCEPTION DATE
Collectively Managed 04/30/89
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 15.62%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the S&P 500
Index(2), which returned 14.07%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Internationally, the recovery in corporate profits throughout many
important sectors led the way to higher capital spending and further profit
expansion. Strong relative results in the final months of 2003 gave way to
weaker results in the first quarter of 2004. The international component of the
Fund was a positive contributor to performance, particularly the Japanese
financial sector where corporate restructuring and ties to the economic recovery
led to strong stock gains. UFJ Holdings and Mitsubishi-Tokyo Financial Group
were the two largest contributors to the Fund's positive performance.
Domestically, one of the Fund's top contributors was eBay, which posted a
return of over 26% for the period. On the other hand, one of the Fund's weaker
performers was Microsoft, which detracted significantly from Fund performance
over the period, because of news of an unfavorable antitrust ruling in Europe.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Fund is a blend of several investment styles, including international
equity, large company growth, small company growth and small company value.
Rather than making major shifts in investment style as the economy changes, it
remains highly diversified and continues to invest in most of the equity
categories.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We expect to continue to manage the Fund using a blended approach in which
some investment categories will benefit--and others will decline--depending upon
how the economic scenario plays out. For example, if the economy continues to
improve, then stocks that usually benefit from such a scenario, such as
technology, could appreciate in value. If overseas economies continue to
recover, then investors in this Fund may benefit from its overseas investments.
While we are not dependent upon economic predictions to make our investment
decisions, we believe that it is likely that the U.S. and international
economies will continue to improve, and that it is possible that interest rates
may rise as the demand for credit increases.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Growth Equity Fund.
(1) The Fund's Adviser has committed through January 31, 2005, 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.
The Fund is a gateway blended Fund that invests all of its assets in two or
more master portfolios of Master Trust in varying proportions. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for the Class A, Class B, Class C and Institutional
Class shares of the Wells Fargo Growth Equity Fund for periods prior to November
8, 1999,reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Growth Equity 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 of the Fund prior to May 2, 1996,reflects the performance
of the Institutional Class shares of the Fund, adjusted for Class A sales
charges and expenses. Performance shown for the Class B shares of the Fund prior
to May 6, 1996, reflects the performance of the Institutional Class shares of
the Fund, adjusted for Class B sales charges and expenses. Performance shown for
the Class C shares of the Fund prior to October 1, 1998, reflects the
performance of the Institutional Class shares of the Fund, adjusted for Class C
sales charges and expenses. Performance of the Institutional Class shares of the
Fund, prior to November 11, 1994, reflects the performance of a collective
investment fund, adjusted to reflect Institutional Class expenses. Wells Fargo
Bank, N.A., formerly Norwest Bank Minnesota, N.A., managed the collective
investment fund with an investment objective and principal investment strategy
that were substantially similar to those of the Fund. The collective investment
fund's performance was adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 ("1940 Act") nor subject to certain investment
limitations, diversification requirements or other restrictions imposed by the
1940 Act or the Internal Revenue Code, which, if applicable, may have adversely
affected the Fund's performance results.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
12
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Growth Equity Fund - Class A 8.98 36.65 1.52 8.64 15.62 44.99 2.73 9.28
Wells Fargo Growth Equity Fund - Class B 10.20 38.90 1.58 8.47 15.20 43.90 1.95 8.47
Wells Fargo Growth Equity Fund - Class C 14.21 42.90 1.95 8.55 15.21 43.90 1.95 8.55
Wells Fargo Growth
Equity Fund - Institutional Class 15.79 45.37 2.96 9.40
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004,THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (as of March 31, 2004)
- --------------------------------------------------------------------------------
eBay Incorporated 2.10%
Intel Corporation 1.93%
Cisco Systems Incorporated 1.82%
Microsoft Corporation 1.82%
Medtronic Incorporated 1.71%
Goldman Sachs Group Incorporated 1.66%
American International Group Incorporated 1.61%
First Data Corporation 1.46%
Pfizer Incorporated 1.37%
Paychex Incorporated 1.33%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 13%
Consumer Staples 2%
Energy 1%
Financial Services 11%
Health Care 10%
Industrials 8%
Information Technology 21%
International 30%
Basic Materials 2%
Utilities 1%
Cash 1%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.82
Price to Earnings Ratio (trailing 12 months) 21.71x
Price to Book Ratio 3.05x
Median Market Cap. ($B) $17.15
Portfolio Turnover 24%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Growth Wells Fargo Growth
Equity Fund - Equity Fund -
Class A Class I S&P 500 Index
------------------ ------------------ -------------
3/31/94 9425 10000 9564
4/30/94 9542 10124 9686.61
5/31/94 9462 10040 9844.5
6/30/94 9093 9648 9603.21
7/31/94 9387 9960 9918.58
8/31/94 9859 10460 10325.2
9/30/94 9705 10297 10072.8
10/31/94 9832 10432 10299.1
11/30/94 9422 9996 9924.03
12/31/94 9605 10191 10071.2
1/31/95 9517 10098 10332.2
2/28/95 9775 10371 10734.5
3/31/95 10124 10741 11050.7
4/28/95 10355 10986 11375.9
5/31/95 10559 11204 11829.7
6/30/95 11039 11713 12104.2
7/31/95 11772 12490 12505.4
8/31/95 11837 12559 12536.7
9/29/95 12155 12897 13065.5
10/31/95 11763 12480 13018.9
11/30/95 11990 12721 13589.8
12/29/95 11993 12725 13851.6
1/31/96 12211 12956 14322.5
2/29/96 12543 13308 14455.7
3/31/96 12765 13544 14594.5
4/30/96 13339 14152 14809
5/31/96 13624 14456 15189.6
6/30/96 13353 14167 15247.4
7/31/96 12570 13337 14573.4
8/31/96 12978 13770 14880.9
9/30/96 13624 14456 15717.2
10/31/96 13521 14346 16151
11/30/96 14205 15072 17370.4
12/31/96 14246 15115 17026.5
1/31/97 14720 15618 18090.7
2/28/97 14538 15425 18231.8
3/31/97 13920 14770 17484.3
4/30/97 14260 15125 18526.3
5/31/97 15547 16496 19652.7
6/30/97 16342 17339 20533.2
7/31/97 17342 18400 22165.6
8/31/97 16677 17689 20924.3
9/30/97 17787 18872 22068.8
10/31/97 16945 17974 21331.7
11/30/97 16940 17974 22319.4
12/31/97 17107 18151 22703.3
1/31/98 17374 18429 22953
2/28/98 18627 19764 24607.9
3/31/98 19315 20488 25867.9
4/30/98 19662 20862 26131.7
5/31/98 19054 20211 25682.3
6/30/98 19582 20777 26725
7/31/98 19139 20307 26441.7
8/31/98 15966 16941 22620.8
9/30/98 16622 17636 24070.8
10/31/98 17534 18604 26027.8
11/30/98 18665 19804 27605.1
12/31/98 19930 21146 29195.1
1/31/99 20536 21789 30415.5
2/28/99 19511 20701 29469.6
3/31/99 20015 21236 30648.4
4/30/99 20729 21994 31834.4
5/29/99 20497 21747 31083.2
6/30/99 21789 23112 32808.3
7/31/99 21545 22860 31784
8/31/99 21216 22511 31626.7
9/30/99 20871 22138 30759.8
10/31/99 21800 23130 32706.9
11/30/99 22837 24230 33370.8
12/31/99 25043 26584 35336.4
1/31/00 24187 25675 33562.5
2/29/00 25599 27181 32928.1
3/31/00 26992 28673 36148.5
4/30/00 26175 27806 35060.5
5/31/00 25089 26661 34341.7
6/30/00 26476 28139 35190
7/31/00 26077 27722 34641
8/31/00 27483 29221 36792.2
9/30/00 26090 27743 34849.6
10/31/00 25782 27431 34703.2
11/30/00 23892 25419 31968.6
12/31/00 24966 26565 32125.2
1/31/01 25456 27093 33265.7
2/28/01 22986 24465 30235.2
3/31/01 21199 22570 28321.3
4/30/01 23071 24572 30519
5/31/01 22947 24440 30723.5
6/30/01 22636 24119 29976.9
7/31/01 22100 23559 29683.1
8/31/01 20943 22323 27827.9
9/30/01 18542 19770 25582.2
10/31/01 19335 20626 26070.8
11/30/01 20849 22241 28070.5
12/31/01 21359 22796 28317.5
1/31/02 21077 22488 27904.1
2/28/02 20491 21873 27365.5
3/31/02 21696 23163 28394.5
4/30/02 21254 22702 26673.8
5/31/02 20732 22138 26479.1
6/30/02 19655 20993 24593.7
7/31/02 17339 18524 22677.9
8/31/02 17364 18558 22825.3
9/30/02 15675 16755 20346.5
10/31/2002 16704 17858 22134.9
11/30/2002 17701 18917 23436.4
12/31/2002 16720 17882 22060.7
1/31/2003 16093 17215 21484.9
2/28/2003 15740 16839 21162.7
3/31/2003 15796 16899 21365.8
4/30/03 17130 18335 23126.4
5/31/03 18264 19549 24342.8
6/30/03 18593 19908 24654.4
7/31/03 19413 20788 25088.3
8/31/03 20016 21438 25577.6
9/30/03 19807 21215 25306.4
10/31/03 21134 22643 26736.2
11/30/03 21447 22985 26971.5
12/31/03 22348 23951 28384.8
1/31/04 22693 24327 28907.1
2/29/04 22870 24523 29308.9
3/31/04 22902 24566 28866.4
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund.See Notes to the
Financial Statements for a discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Growth Equity Fund
Class A and Institutional Class shares for the most recent ten years with the
S&P 500 Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
13
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO INDEX FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Index Fund (the Fund) seeks to replicate the total
rate of return of the S&P 500 Index(1), before fees and expenses.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Laurie R. White 01/31/87
Gregory T. Genung, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund returned 13.90%(2) for the six-month period ended March 31, 2004,
underperforming the S&P 500 Index(1) (the Index), which returned 14.07%. The
Fund distributed $0.58 per share in dividend income and no capital gains during
the six-month period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's goal is to approximate the total rate of return of the Index
less expenses. The Fund was positively affected by the low interest rate
environment, low inflation and positive economic growth. Overall equity
performance, however, was hindered by the lagging economic recovery. During the
reporting period, the Index overcame a setback in March 2004 to post its fourth
straight quarterly gain.
The best-performing sectors within the Index tended to be those that would
typically benefit from accelerating economic growth. During the second half of
the period, the more stable, "defensive" sectors of the market led the way, a
pattern that may continue if interest rates begin a more sustained rise later
this year. The consumer staples sector turned in a strong performance, while
higher oil prices and lower interest rates provided good support to energy and
financial services stocks, respectively. Broadly speaking, small cap stocks
outperformed mid cap stocks, which, in turn, outperformed the large cap stocks
that comprise the Index.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Earnings of stocks within the Index may continue to grow throughout 2004,
as economic fundamentals are falling into place for a more sustained stock rally
in the months ahead. Upbeat economic reports have lent support to analysts'
double-digit growth forecast for corporate profits through late 2004. We believe
that exports, inventory building and other investment spending could add
support, benefiting from a slow, but steady improvement in business pricing
power. This could negatively impact the economy, however, because of its
potential to contribute to inflation and worsen the outlook on interest rates
later this year. Any future rise in interest rates this year may be gradual by
historic standards, reflecting solid, but unspectacular growth and only a
gradual turn toward higher inflation.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Index Fund.
(1) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility, and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(2) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Performance shown for Institutional Class shares of the Wells Fargo Index
Fund for periods prior to November 8, 1999 reflects performance of the
Institutional Class shares of the Norwest Advantage Index 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 Institutional Class shares of the Fund, prior to November 11, 1994,
reflects performance of a collective investment fund adjusted to reflect
Institutional Class expenses. Wells Fargo Bank, N.A., formerly Norwest Bank,
N.A., managed the collective investment fund with an investment objective and
principal investing strategy that were substantially similar to those of the
Fund. The collective investment fund's performance was adjusted to reflect the
Fund's 1994 estimate of its expense ratio for the first year of operations as a
mutual fund, including any applicable sales load (without giving effect to any
fee waivers or expense reimbursements). The collective investment fund was not
registered under the Investment Company Act of 1940 ("1940 Act") nor subject to
certain investment limitations, diversification requirements, or other
restrictions imposed by the 1940 Act or the Internal Revenue Code which, if
applicable, may have adversely affected the performance results.
14
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Excluding Sales Charge
-----------------------------------
6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ -------
Wells Fargo Index Fund-Institutional Class 13.90 34.75 (1.32) 11.31
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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 MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
General Electric Company 2.83%
Exxon Mobil Corporation 2.48%
Microsoft Corporation 2.45%
Pfizer Incorporated 2.43%
Citigroup Incorporated 2.42%
Wal-Mart Stores Incorporated 2.35%
American International Group Incorporated 1.69%
Intel Corporation 1.60%
Cisco Systems Incorporated 1.47%
International Business Machines Corporation 1.42%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Staples 11%
Consumer Discretionary 11%
Energy 6%
Financial Services 21%
Health Care 13%
Industrials 10%
Information Technology 17%
Telecommunication Services 3%
Basic Materials 3%
Utilities 3%
Cash 2%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.00
Price to Earnings Ratio (trailing 12 months) 20.10x
Price to Book Ratio 3.03x
Median Market Cap ($B) $ 9.40
Portfolio Turnover 1%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVEATMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Index Fund - Class I S&P 500 Index
-------------------------------- -------------
3/31/94 10000 10000
4/30/94 10121 10128
5/31/94 10267 10293
6/30/94 10024 10041
7/31/94 10351 10371
8/31/94 10775 10796
9/30/94 10514 10532
10/31/94 10734 10769
11/30/94 10339 10376
12/31/94 10485 10530
1/31/95 10751 10803
2/28/95 11159 11224
3/31/95 11464 11555
4/28/95 11789 11895
5/31/95 12245 12369
6/30/95 12531 12656
7/31/95 12929 13076
8/31/95 12958 13108
9/29/95 13482 13661
10/31/95 13419 13612
11/30/95 14001 14209
12/29/95 14259 14483
1/31/96 14744 14975
2/29/96 14863 15115
3/31/96 15007 15260
4/30/96 15220 15484
5/31/96 15602 15882
6/30/96 15666 15942
7/31/96 14972 15238
8/31/96 15275 15559
9/30/96 16127 16434
10/31/96 16568 16887
11/30/96 17816 18162
12/31/96 17434 17803
1/31/97 18535 18915
2/28/97 18677 19063
3/31/97 17913 18281
4/30/97 18978 19371
5/31/97 20130 20549
6/30/97 21048 21469
7/31/97 22694 23176
8/31/97 21430 21878
9/30/97 22592 23075
10/31/97 21833 22304
11/30/97 22832 23337
12/31/97 23218 23738
1/31/98 23473 23999
2/28/98 25159 25730
3/31/98 26438 27047
4/30/98 26704 27323
5/31/98 26234 26853
6/30/98 27298 27943
7/31/98 27004 27647
8/31/98 23088 23652
9/30/98 24559 25168
10/31/98 26551 27214
11/30/98 28147 28864
12/31/98 29795 30526
1/31/99 30984 31802
2/28/99 30020 30813
3/31/99 31214 32046
4/30/99 32408 33286
5/29/99 31630 32500
6/30/99 33384 34304
7/31/99 32345 33233
8/31/99 32194 33068
9/30/99 31313 32162
10/31/99 33290 34198
11/30/99 33950 34892
12/31/99 35930 36947
1/31/00 34116 35093
2/29/00 33470 34429
3/31/00 36736 37796
4/30/00 35628 36659
5/31/00 34893 35907
6/30/00 35740 36794
7/31/00 35201 36220
8/31/00 37376 38469
9/30/00 35402 36438
10/31/00 35248 36285
11/30/00 32474 33426
12/31/00 32624 33590
1/31/01 33768 34782
2/28/01 30726 31614
3/31/01 28784 29612
4/30/01 31016 31910
5/31/01 31220 32124
6/30/01 30453 31343
7/31/01 30150 31036
8/31/01 28258 29097
9/30/01 25976 26748
10/31/01 26464 27259
11/30/01 28487 29350
12/31/01 28732 29608
1/31/02 28313 29176
2/28/02 27762 28613
3/31/02 28801 29689
4/30/2002 27055 27890
5/31/2002 26848 27686
6/30/2002 24927 25715
7/31/2002 23018 23712
8/31/2002 23168 23866
9/30/2002 20640 21274
10/31/2002 22480 23144
11/30/2002 23800 24505
12/31/2002 22404 23066
1/31/2003 21800 22464
2/28/2003 21469 22127
3/31/2003 21673 22340
4/30/03 23446 24181
5/31/03 24686 25453
6/30/03 24998 25778
7/31/03 25430 26232
8/31/03 25919 26744
9/30/03 25640 26460
10/31/03 27083 27955
11/30/03 27318 28201
12/31/03 28740 29679
1/31/04 29255 30225
2/29/04 29654 30645
3/31/04 29204 30182
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Index Fund
Institutional Class shares for the most recent ten years with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Institutional
Class shares and reflects all operating expenses.
15
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO INTERNATIONAL EQUITY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo International Equity Fund (the Fund) seeks total return,
with an emphasis on capital appreciation, over the long term, by investing
primarily in equity securities of non-U.S. companies.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Josephine Jimenez, CFA 09/24/97
Sabrina Yih, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 17.77%(1) for the six-month period
ended March 31, 2004, excluding sales charges, underperforming the MSCI/EAFE
Index(2) (the Index), which returned 22.16%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The largest contributor to the Fund's performance was the Japanese
financial sector, in which corporate restructuring and ties to the economic
recovery led to strong stock gains. UFJ Holdings and Mitsubishi-Tokyo Financial
Group were the two largest contributors to the Fund's positive performance.
Energy companies in the Fund benefited from strong earnings and sustained high
oil prices.
The Fund's holdings in industrial, information technology and consumer
discretionary stocks, particularly in Europe, underperformed the Index. In
addition, small cap stocks outperformed large cap stocks, although the Fund was
geared more towards large cap stocks. One of the Fund's worst performers was
Vodafone Holdings (formerly Japan Telecom), primarily because it did not offer
the right handset products to compete effectively.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
First, we added attractively priced stocks that we believe may benefit
from an increase in consumer discretionary spending, with particular focus on
European luxury goods companies. Second, we increased exposure to materials
companies that benefit from demand in the emerging markets as well as in
developed countries. Third, we added select telecommunications equipment
companies that are focused on wireless technology.
We believe that the Fund is positioned for global recovery in both
continental Europe and in Japan. The Fund has an overweight position in Japan as
compared to the Index, based on the belief that both a domestic- and export-led
recovery are occurring.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe that we remain positioned for global growth driven by further
demand from China and from the economic recovery of the U.S., Japan and Europe
after several years of slow growth. Within that scenario, we are searching for
companies that we believe may benefit from the recovery of consumer spending,
higher capital expenditure spending and exports to high-growth economies.
Investing in foreign securities presents certain risks that may not be
present in domestic securities. For example, investments in foreign and emerging
markets present special risks including currency fluctuation, the potential for
diplomatic and political instability, regulatory and liquidity risks, foreign
taxation and differences in auditing and other financial standards.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 International Equity Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class C shares of the Wells
Fargo International Equity Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Class C shares of the Stagecoach
International Equity 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
for periods prior to April 1, 1998, reflects performance of the Class B shares
of the Stagecoach Fund, adjusted for Class C sales charges and expenses.
Performance shown for the Institutional Class shares for periods prior to
November 8, 1999, reflects performance of the Class A shares, adjusted to
reflect the expenses of the Institutional Class shares.
(2) The Morgan Stanley Capital International/Europe, Australasia and Far East
(MSCI/EAFE) Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia and
the Far East. You cannot invest directly in an index.
16
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
-------------------------------------- --------------------------------------
6-Month* 1-Year 5-Year Life of Fund 6-Month* 1-Year 5-Year Life of Fund
-------- ------ ------ ------------ -------- ------ ------ ------------
Wells Fargo International Equity Fund - Class A 11.03 36.60 (0.35) 1.98 17.77 45.27 0.84 2.91
Wells Fargo International Equity Fund - Class B 12.41 38.80 (0.35) 2.14 17.41 43.80 0.05 2.14
Wells Fargo International Equity Fund - Class C 16.32 42.73 0.04 2.13 17.32 43.73 0.04 2.13
Wells Fargo International Equity Fund -
Institutional Class 17.90 45.28 1.05 3.08
Benchmark
MSCI/EAFE Index 22.16 57.54 0.52 2.19
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Total SA 3.27%
Vodafone Group plc 2.75%
Nomura Holdings Incorporated 2.60%
BHP Billiton Limited 2.59%
Mitsubishi Tokyo Financial Group Incorporated 2.34%
Koninklijke (Royal) Philips Electronics
NV NY Shares 2.30%
Canon Incorporated 2.06%
Novartis AG 1.92%
Toyota Motor Corporation 1.90%
UBS AG 1.86%
PORTFOLIO COMPOSITION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Continental Europe 44%
United Kindgdom 18%
Australia 4%
Southeast Asia 3%
Emerging Markets 2%
Japan 25%
Canada 2%
Cash 2%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.97
Price to Earnings Ratio (trailing 12 months) 25.0x
Price to Book Ratio 2.3x
Median Market Cap.($B) $21.6
Portfolio Turnover 22%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT5 (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo International Wells Fargo International
Equity Fund - Class A Equity Fund - Class I MSCI EAFE Index
------------------------- ------------------------- ---------------
9/24/97 9425 10000 10000
9/30/97 9510 10090 10000
10/31/97 8954 9500 9231
11/30/97 9029 9580 9136.84
12/31/97 9116 9672 9216.33
1/31/98 9323 9892 9637.52
2/28/98 9955 10562 10256.2
3/31/98 10417 11052 10572.1
4/30/98 10605 11252 10655.7
5/31/98 10596 11242 10603.5
6/30/98 10746 11402 10684
7/31/98 10869 11532 10791.9
8/31/98 9135 9692 9454.82
9/30/98 8823 9362 9164.56
10/31/98 9606 10192 10119.5
11/30/98 10162 10782 10637.6
12/31/98 10577 11222 11057.8
1/31/99 10756 11412 11024.6
2/28/99 10567 11212 10762.2
3/31/99 10897 11562 11211
4/30/99 11312 12002 11665.1
5/31/99 10926 11592 11064.3
6/30/99 11548 12252 11495.8
7/31/99 11906 12632 11837.3
8/31/99 11802 12522 11881.1
9/30/99 11972 12702 12001.1
10/31/99 12670 13442 12451.1
11/30/99 14065 14933 12883.2
12/31/99 15988 17002 14040.1
1/31/00 15310 16286 13148.5
2/29/00 16638 17697 13502.2
3/31/00 16839 17922 14026.1
4/30/00 15807 16828 13288.3
5/31/00 14822 15774 12964.1
6/30/00 15606 16613 13471
7/31/00 15291 16286 12906.6
8/31/00 15568 16582 13018.8
9/30/00 14564 15518 12384.8
10/31/00 14172 15099 12092.5
11/30/00 13408 14291 11639.1
12/31/00 13878 14792 12052.3
1/31/01 14220 15169 12046.2
2/28/01 13106 13977 11142.8
3/31/01 12208 13026 10399.5
4/30/01 12813 13674 11122.3
5/31/01 12706 13559 10729.7
6/30/01 12315 13151 10290.8
7/31/01 11983 12785 10103.6
8/31/01 11524 12304 9847.94
9/30/01 10255 10945 8850.34
10/31/01 10635 11364 9076.91
11/30/01 11085 11834 9411.85
12/31/01 11329 12106 9467.38
1/31/02 10782 11531 8964.66
2/28/02 10635 11364 9027.41
3/31/02 11173 11949 9515.8
4/30/02 11173 11959 9578.6
5/31/02 11075 11855 9700.25
6/30/02 10567 11311 9314.18
7/31/02 9463 10120 8394.87
8/31/02 9356 10005 8375.56
9/30/02 8262 8844 7476.03
10/31/02 8624 9231 7877.49
11/30/02 9073 9712 8235.13
12/31/02 8692 9306 7958.43
1/31/03 8174 8762 7626.56
2/28/03 7989 8563 7451.15
3/31/03 7823 8385 7305.11
4/30/03 8477 9097 8021.01
5/31/03 8946 9599 8507.08
6/30/03 9073 9736 8712.95
7/31/03 9190 9830 8923.8
8/31/03 9444 10112 9138.87
9/30/03 9649 10332 9420.34
10/31/03 10255 10981 10007.2
11/30/03 10479 11232 10229.4
12/31/03 11197 12003 11028.3
1/31/04 11187 11992 11183.8
2/29/04 11325 12140 11442.2
3/31/04 11364 12182 11506.2
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Portfolio composition and characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo International Equity
Fund Class A and Institutional Class shares for the life of the Fund with the
MSCI/EAFE Index. The chart assumes a hypothetical investment of $10,000 in Class
A and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
17
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO LARGE CAP APPRECIATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO LARGE CAP APPRECIATION FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Cadence Capital Management
FUND MANAGERS INCEPTION DATE
William B. Bannick, CFA 08/31/01
Robert L. Fitzpatrick, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 12.89%(1) for the six-month period
ended March 31, 2004, excluding sales charges, underperforming the S&P 500
Index(2), which returned 14.07%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund's holdings of airline stocks lagged during the period, as rising
fuel prices and competitive pressures forced fare reductions that affected the
sector. Microsoft also had a negative impact on Fund performance -- the
performance of the stock has stayed flat as the company seeks to find its way
during what BUSINESS WEEK magazine recently called a "midlife" crisis. In
addition, the Fund had very little exposure to consumer staples, some of which
did very well during the period, especially beverages and tobacco.
The Fund's strongest performers during the six-month period were DR
Horton, a homebuilder; Qualcomm, a manufacturer of digital wireless
telecommunications products; and Coach, a designer of women's and men's
accessories and leather outerwear. DR Horton has benefited from historically low
interest rates, Qualcomm has seen signs of improvement in the wireless industry
and Coach has benefited from expansion of its franchise in Japan.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- ---------------------------------------------------------------------------
The two most noteworthy changes in the Fund's holdings since September 30,
2003, were a decrease in technology holdings and an increase in financial
services holdings. Although the portfolio remains overweight relative to the
benchmark in its technology holdings, we have closed the gap substantially, as
some segments have cooled off and others have presented opportunities. While the
environment is still tough for many segments of the financial services sector,
we have increased exposure to the sector, tilting a bit more toward capital
markets and property and casualty insurance companies.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- ---------------------------------------------------------------------------
We believe the economic recovery will continue through the year, and
corporate earnings growth should follow. In addition, there have been
indications recently that we may finally see some job recovery to accompany the
improving economic picture. Because our investment process is closely tied to
the fundamental operating performance of the companies in the portfolio, we
believe the Fund's performance could benefit from these positive trends.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 LARGE CAP APPRECIATION FUND.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
18
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
-------------------------------- --------------------------------
6-Month* 1-Year Life of Fund 6-Month* 1-Year Life of Fund
-------- ------ ------------ -------- ------ ------------
Wells Fargo Large Cap
Appreciation Fund - Class A 6.40 23.58 (2.00) 12.89 31.12 0.27
Wells Fargo Large Cap
Appreciation Fund - Class B 7.41 25.04 (1.69) 12.41 30.04 (0.51)
Wells Fargo Large Cap
Appreciation Fund - Class C 11.40 29.17 (0.47) 12.40 30.17 (0.47)
Wells Fargo Large Cap
Appreciation Fund - Institutional Class 13.06 31.39 0.50
Benchmark
S&P 500 Index 14.07 35.11 1.42
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGE ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Pfizer Incorporated 3.07%
General Electric Company 3.03%
Cisco Systems Incorporated 2.20%
Citigroup Incorporated 2.02%
JP Morgan Chase & Company 1.63%
Merrill Lynch & Company Incorporated 1.58%
Allstate Corporation 1.57%
Goldman Sachs Group Incorporated 1.50%
UnitedHealth Group Incorporated 1.40%
Schlumberger Limited 1.33%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 14%
Consumer Staples 4%
Energy 7%
Financial Services 22%
Health Care 14%
Industrials 10%
Information Technology 24%
Basic Materials 2%
Utilities 1%
Cash 2%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.1
Price to Earnings Ratio (trailing 12 months) 23x
Price to Book Ratio 3.5x
Median Market Cap ($B) $17.60
Portfolio Turnover 84%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Large Cap Wells Fargo Large Cap
Appreciation Fund - Appreciation Fund - S&P 500
Class A Class I Index
--------------------- --------------------- -------
8/31/01 9425 10000 10000
9/30/01 8982 9530 9193
10/31/01 8944 9500 9368.59
11/30/01 9340 9910 10087.2
12/31/01 9500 10090 10175.9
1/31/02 9378 9960 10027.4
2/28/02 9114 9670 9833.83
3/31/02 9444 10030 10203.6
4/30/02 9123 9690 9585.24
5/31/02 8982 9540 9515.27
6/30/02 8454 8980 8837.78
7/31/02 7681 8160 8149.32
8/31/02 7710 8190 8202.29
9/30/02 7097 7550 7311.52
10/31/2002 7474 7950 7954.2
11/30/2002 7568 8050 8421.91
12/31/2002 7238 7700 7927.55
1/31/2003 7163 7620 7720.64
2/28/2003 7088 7550 7604.83
3/31/2003 7238 7710 7677.83
4/30/03 7653 8150 8310.49
5/31/03 8077 8610 8747.62
6/30/03 8143 8680 8859.59
7/31/03 8313 8860 9015.52
8/31/03 8539 9100 9191.32
9/30/03 8407 8960 9093.89
10/31/03 8954 9540 9607.7
11/30/03 9029 9630 9692.24
12/31/03 9218 9830 10200.1
1/31/04 9321 9950 10387.8
2/29/04 9491 10120 10532.2
3/31/04 9491 10130 10373.2
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the Fund. See Notes to the Financial Statements for the
discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Large Cap Appreciation
Fund Class A and Institutional Class shares for the life of the Fund with the
S&P 500 Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares,assumes the maximum initial sales charge of 5.75%.
19
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO LARGE CAP VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Large Cap Value Fund (the Fund) seeks long-term
capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Systematic Financial
Management, L.P.
FUND MANAGERS INCEPTION DATE
D. Kevin McCreesh, CFA 08/29/03
Ronald M. Mushock, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 16.14%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the S&P 500
Index(2), which returned 14.07% for the same period. The Fund's Class A shares
distributed $0.01 per share in dividend income and no capital gains during the
period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The stock market generally performed well during the six-month period,
except for the first three weeks of March when markets reacted negatively to a
disappointing employment report, geopolitical/terrorist activity and a
subsequent drop in consumer confidence. Fortunately, this activity was
short-lived and investors began refocusing on fundamentals by the end of the
reporting period. Stocks with positive earnings surprises and upward profit
estimates outperformed, and the Fund contained a large number of stocks with
those attributes.
The Fund's best performing holdings for the period included Amdocs, which
provides billing software to the telecommunications industry and Friedman,
Billings, Ramsey Group, an investment banking firm specializing in real estate.
Amdocs has the potential to gain more business as a result of the merger of AT&T
Wireless and Cingular, since Cingular and Amdocs are owned in part by the same
company. Friedman, Billings, Ramsey Group benefited from strong capital markets,
especially from the increased volume of initial public offerings.
The biggest detractor from Fund performance was AMR, the parent company of
American Airlines, which faced high fuel costs, increased terrorism
worries and ongoing competitive pressure from low-cost carriers.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
As a result of our bottom-up stock selection process, the Fund's sector
weighting increased in consumer discretionary and decreased in health care,
materials, utilities, financial, industrials and telecommunication services. The
Fund is currently overweighted in the information technology, materials, health
care and consumer discretionary sectors. It is underweighted in financial,
telecommunications services, energy and consumer staples.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe that the pace of the economic recovery may gain strength and
continue to benefit corporate earnings. Shorter-term risks that could affect the
rate of this recovery include the lack of a meaningful rebound in employment and
further global violence from terrorist activities. We will continue to focus on
stock-specific fundamental analysis, with an emphasis on attractive valuation,
such as low price-to-earnings ratios, positive earnings and revenue surprises,
and upward estimate revisions.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Large Cap Value Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the Fund. See Notes to the Financial Statements for the
discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Large Cap Value Fund
Class A and Institutional Class shares for the life of the Fund with the S&P 500
Index. The chart assumes a hypothetical investment of $10,000 in Class A and
Institutional Class shares and reflects all operating expenses and, for Class A
shares, assumes the maximum initial sales charge of 5.75%.
20
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------ ------------------------
6-Month* Life of Fund* 6-Month* Life of Fund*
-------- ------------- -------- -------------
Wells Fargo Large Cap Value Fund - Class A 9.47 7.50 16.14 14.05
Wells Fargo Large Cap Value Fund - Class B 10.80 8.60 15.80 13.60
Wells Fargo Large Cap Value Fund - Class C 14.70 12.50 15.70 13.50
Wells Fargo Large Cap Value Fund - Institutional Class 16.38 14.28
Benchmark
S&P 500 Index 14.07 12.86
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGE ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Citigroup Incorporated 4.38%
JP Morgan Chase & Company 3.05%
Bank Of America Corporation 2.79%
Exxon Mobil Corporation 2.47%
Black & Decker Corporation 2.47%
Marathon Oil Corporation 2.00%
ChevronTexaco Corporation 1.97%
Verizon Communications Incorporated 1.97%
Corning Incorporated 1.96%
Bellsouth Corporation 1.94%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 16%
Consumer Staples 5%
Energy 9%
Financial Services 29%
Health Care 5%
Industrials 6%
Information Technology 11%
Basic Materials 6%
Telecommunications Services 4%
Utilities 4%
Cash 5%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.02
Price to Earnings Ratio (trailing 12 months) 21.30x
Price to Book Ratio 2.80x
Median Market Cap ($B) $10.40
Portfolio Turnover 67%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Large Cap Wells Fargo Large Cap
Value Fund - Class A Value Fund - Class I S&P 500 Index
--------------------- --------------------- -------------
8/31/03 9425 10000 10000
9/30/03 9255 9820 9894
10/31/03 9689 10280 10453
11/30/03 10028 10650 10545
12/31/03 10438 11088 11097.6
1/31/04 10618 11278 11301.8
2/29/04 10910 11599 11458.8
3/31/04 10750 11428 11285.8
21
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO LARGE COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Large Company Growth Fund (the Fund) seeks long-term
capital appreciation by investing primarily in large, domestic
companies that we believe have superior growth potential.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Peregrine Capital Management,
Inc.
FUND MANAGERS INCEPTION DATE
John S. Dale, CFA 12/31/82
Gary E. Nussbaum, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 8.14%(1) for the six-month period ended
March 31, 2004, excluding sales charges, underperforming the S&P 500 Index(2),
which returned 14.07% during the period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
During the past six months, the lowest quality, highest risk assets
performed the best. Small cap stocks outperformed large cap stocks. Large-cap
value stocks outperformed large-cap growth stocks. The Fund was and continues to
be focused on the high-quality, fast-earnings growth companies. This
high-quality focus helped in the 2000-2002 timeframe, but hindered performance
during the current reporting period, especially in the fourth quarter of 2003,
as value stocks outperformed growth stocks.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The changes we made to the Fund's portfolio were designed to sustain the
Fund's rapid earnings growth profile. For example, we initiated a position in
Genentech, a leader in the biotechnology arena that has a diverse product base
and substantial pipeline of new drugs that should allow the company to grow
earnings over the next several years. We also purchased Linear Technology, a
leader in the analog semiconductor market that is highly profitable and growing
revenue and earnings in excess of 20% per year. Finally, we added Franklin
Resources to the portfolio, a company that has a good asset management business
and is likely to grow assets and earnings at a mid-teens long-term rate, well
ahead of the industry. We sold the Fund's positions in IMS Health and DST
Systems, two well-managed companies that were likely to grow future earnings,
but at the low end of our growth criteria. These moves should help maintain the
Fund's average long-term earnings growth rate at two to three times the average
company.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Corporate management currently faces an intensely competitive, global
arena. This extremely competitive environment means that there is not much in
the way of profits left over for anyone but those who are first in their
industry. We will seek to invest in rare, high-quality growth companies that are
the dominant, low-cost industry leaders.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Large Company Growth Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Performance shown for the Class A, Class B and Institutional Class shares
of the Wells Fargo Large Company Growth Fund for periods prior to November
8, 1999, reflects performance of the Class A, Class B and Institutional Class
shares of the Norwest Advantage Large Company Growth 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 of the Fund prior to October 1, 1998, reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class A sales charges and expenses. Performance shown for the Class B shares of
the Fund prior to October 1, 1998, reflects the performance of the Institutional
Class shares of the Fund, adjusted to reflect Class B sales charges and
expenses. Performance shown for the Class C shares for periods prior to November
8, 1999, reflects performance of the Class B shares, adjusted for Class C sales
charges and expenses. Performance of the Institutional Class shares of the Fund,
prior to November 11, 1994, reflects the performance of a collective investment
fund, adjusted to reflect Institutional Class expenses. Wells Fargo Bank, N.A.,
formerly Norwest Bank Minnesota, N.A., managed the collective investment fund
with an investment objective and principal investment strategy that were
substantially similar to those of the Fund. The collective investment fund's
performance was adjusted to reflect the Fund's 1994 estimate of its expense
ratio for the first year of operations as a mutual fund, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 ("1940 Act") nor subject to certain investment
limitations, diversification requirements or other restrictions imposed by the
1940 Act or the Internal Revenue Code, which, if applicable, may have adversely
affected the Fund's performance results.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others,industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable to the Fund divided by total
market value of the portfolio of investments of the Fund. See Notes to the
Financial Statements for a discussion of the Master Trust.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Large Company Growth
Fund Class A and Institutional Class shares for the most recent ten years with
the S&P 500 Index. The chart assumes a hypothetical investment of $10,000 in
Class A and Institutional Class shares and reflects all operating expenses and,
for Class A shares, assumes the maximum initial sales charge of 5.75%.
22
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Large Company
Growth Fund - Class A 1.93 22.76 (4.98) 10.61 8.14 30.25 (3.85) 11.27
Wells Fargo Large Company
Growth Fund - Class B 2.73 24.26 (4.91) 10.54 7.73 29.26 (4.42) 10.54
Wells Fargo Large Company
Growth Fund - Class C 6.77 28.29 (4.40) 10.56 7.77 29.29 (4.40) 10.56
Wells Fargo Large Company
Growth Fund - Institutional Class 8.31 30.48 (3.64) 11.40
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%.FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
eBay Incorporated 6.58%
Intel Corporation 5.51%
Medtronic Incorporated 5.35%
Goldman Sachs Group Incorporated 5.19%
Microsoft Corporation 5.14%
Cisco Systems Incorporated 5.12%
American International Group Incorporated 5.05%
First Data Corporation 4.56%
Paychex Incorporated 4.15%
Charles Schwab Corporation 3.80%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 18%
Consumer Staples 2%
Financial Services 17%
Health Care 15%
Industrials 6%
Information Technology 41%
Cash 1%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.30
Price to Earnings Ratio (trailing 12 months) 23.00x
Price to Book Ratio 4.60x
Median Market Cap ($B) $35.60
Portfolio Turnover 9%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Large Company Wells Fargo Large Company
Growth Fund - Growth Fund -
Class A Class I S&P 500 Index
------------------------- ------------------------- -------------
3/31/94 9425 10000 9564
4/30/94 9368 9940 9686.61
5/31/94 9459 10036 9844.5
6/30/94 8922 9467 9603.21
7/31/94 9367 9939 9918.58
8/31/94 9776 10373 10325.2
9/30/94 9601 10187 10072.8
10/31/94 9819 10418 10299.1
11/30/94 9404 9977 9924.03
12/31/94 9504 10084 10071.2
1/31/95 9698 10290 10332.2
2/28/95 9941 10547 10734.5
3/31/95 10235 10860 11050.7
4/28/95 10504 11145 11375.9
5/31/95 10830 11491 11829.7
6/30/95 11615 12324 12104.2
7/31/95 12184 12927 12505.4
8/31/95 12294 13044 12536.7
9/29/95 12816 13597 13065.5
10/31/95 12421 13179 13018.9
11/30/95 12673 13447 13589.8
12/29/95 12282 13032 13851.6
1/31/96 12606 13376 14322.5
2/29/96 13196 14002 14455.7
3/31/96 13345 14160 14594.5
4/30/96 13892 14740 14809
5/31/96 14334 15208 15189.6
6/30/96 14143 15005 15247.4
7/31/96 13356 14171 14573.4
8/31/96 13499 14323 14880.9
9/30/96 14754 15654 15717.2
10/31/96 14636 15530 16151
11/30/96 15567 16517 17370.4
12/31/96 15366 16304 17026.5
1/31/97 16598 17611 18090.7
2/28/97 16223 17213 18231.8
3/31/97 15072 15992 17484.3
4/30/97 16250 17242 18526.3
5/31/97 17476 18543 19652.7
6/30/97 18398 19521 20533.2
7/31/97 20096 21322 22165.6
8/31/97 18987 20146 20924.3
9/30/97 20310 21549 22068.8
10/31/97 19544 20737 21331.7
11/30/97 20144 21373 22319.4
12/31/97 20491 21742 22703.3
1/31/98 21029 22313 22953
2/28/98 22697 24082 24607.9
3/31/98 23281 24702 25867.9
4/30/98 23889 25347 26131.7
5/31/98 23119 24530 25682.3
6/30/98 25226 26766 26725
7/31/98 25278 26821 26441.7
8/31/98 21058 22344 22620.8
9/30/98 23038 24444 24070.8
10/31/98 24727 26237 26027.8
11/30/98 27076 28737 27605.1
12/31/98 30321 32179 29195.1
1/31/99 32792 34811 30415.5
2/28/99 31412 33347 29469.6
3/31/99 33360 35420 30648.4
4/30/99 33499 35577 31834.4
5/29/99 32330 34333 31083.2
6/30/99 35174 37367 32808.3
7/31/99 33454 35552 31784
8/31/99 33538 35640 31626.7
9/30/99 32258 34290 30759.8
10/31/99 35041 37247 32706.9
11/30/99 36321 38617 33370.8
12/31/99 40314 42865 35336.4
1/31/00 39278 41778 33562.5
2/29/00 40012 42563 32928.1
3/31/00 44723 47584 36148.5
4/30/00 42992 45743 35060.5
5/31/00 40126 42705 34341.7
6/30/00 43214 46000 35190
7/31/00 43351 46148 34641
8/31/00 45948 48923 36792.2
9/30/00 42741 45518 34849.6
10/31/00 42718 45498 34703.2
11/30/00 39101 41655 31968.6
12/31/00 38776 41314 32125.2
1/31/00 39388 41973 33265.7
2/28/00 33412 35607 30235.2
3/31/00 29906 31883 28321.3
4/30/01 33113 35307 30519
5/31/01 32807 34994 30723.5
6/30/01 31884 34015 29976.9
7/31/01 31313 33409 29683.1
8/31/01 28475 30389 27827.9
9/30/01 25707 27434 25582.2
10/31/01 26895 28713 26070.8
11/30/01 30044 32085 28070.5
12/31/01 30332 32398 28317.5
1/31/02 30142 32196 27904.1
2/28/02 28129 30050 27365.5
3/31/02 29381 31400 28394.5
4/30/02 27085 28947 26673.8
5/31/02 26260 28067 26479.1
6/30/02 24536 26227 24593.7
7/31/02 22131 23664 22677.9
8/31/02 22390 23945 22825.3
9/30/02 19910 21296 20346.5
10/31/2002 22177 23723 22134.9
11/30/2002 23694 25353 23436.4
12/31/2002 21767 23292 22060.7
1/31/2003 20983 22457 21484.9
2/28/2003 20787 22255 21162.7
3/31/2003 21052 22555 21365.8
4/30/03 22944 24571 23126.4
5/31/03 24028 25738 24342.8
6/30/03 24305 26038 24654.4
7/31/03 25557 27382 25088.3
8/31/03 26041 27910 25577.6
9/30/03 25355 27173 25306.4
10/31/03 26889 28830 26736.2
11/30/03 26774 28713 26971.5
12/31/03 27529 29528 28384.8
1/31/04 27824 29848 28907.1
2/29/04 27795 29828 29308.9
3/31/04 27420 29430 28866.4
23
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO MONTGOMERY EMERGING MARKETS FOCUS FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO MONTGOMERY EMERGING MARKETS FOCUS FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Josephine Jimenez, CFA 12/31/97
Frank Chiang
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 24.31(1) for the six-month period ended
March 31, 2004, excluding sales charges, underperforming the MSCI EMF Index(2),
which returned 29.26%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Emerging markets continued to perform well through the end of 2003 and
into 2004. The Fund held positions in companies in Asia, Eastern Europe and
Latin America, which continued to benefit from low interest rates, improved
earnings and strong basic materials prices. The economies of China, Mexico and
Brazil continued to grow, benefiting from their ties to the U.S. economy, while
the stock markets of Korea, Taiwan, Argentina and Russia registered double-digit
gains by the end of the reporting period. The recovery in corporate profits
throughout many important sectors, including consumer discretionary and
industrials, in these countries contributed significantly to Fund performance.
The Brazilian government's very strict monetary policy put downward
pressure on the country's stocks, which detracted from the Fund's performance in
recent months. After contributing strong gains to performance in the fourth
quarter of 2003, the Fund's holdings in Thailand suffered from concerns over
terrorism and avian influenza, or "bird flu."
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We reduced the Fund's exposure to Brazil at the end of the reporting
period but continued to maintain an overweight position, as we remain positive
about its leadership in the region's economic recovery. We increased the Fund's
exposure to Mexico with companies experiencing strong profits growth and added
to the Fund's positions in Chile and Indonesia, based on our positive outlook
for basic materials demand. We also increased the Fund's exposure to India, as
the country's agricultural and software sectors continue to grow. Because we
believe that higher oil prices and increasing political stability continue to
benefit Russia, we increased the Fund's exposure to the country. On a sector
basis, we added slightly to the Fund's positions in consumer staples, financial,
and telecommunication services.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We remain optimistic that inflation will not dampen growth significantly,
but are cautious about the potential for rising interest rates to negatively
impact growth in emerging markets. We anticipate continued strong demand for
basic materials, higher energy prices and a continued recovery in capital
spending, but will watch carefully the economic impact of coming elections in
many countries. Within this investment backdrop, we remain focused on
fundamentals and overall security valuation within the Fund's portfolio.
Investing in foreign securities entails additional risks that may not be
present in domestic securities, including currency fluctuation, political and
diplomatic instability, regulatory and liquidity risks, foreign taxation and
differences in auditing and other financial standards. In addition to the
greater exposure to the risks of foreign investing, emerging markets present
considerable additional risks, including potential instability of emerging
market countries and the increased susceptibility of emerging market economies
to financial, economic and market events.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 MONTGOMERY EMERGING MARKET FOCUS FUND.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class A, Class B, Class C and Institutional Class
shares of the Wells Fargo Montgomery Emerging Markets Focus Fund for periods
prior to June 9, 2003, reflects the performance of the Class A, Class B, Class C
and Class R shares, respectively, of the Montgomery Emerging Markets Focus Fund
(the accounting survivor of a merger of the Montgomery Emerging Markets Focus
Fund and Montgomery Emerging Markets Fund with the Wells Fargo Montgomery
Emerging Markets Focus Fund), its predecessor fund, adjusted to reflect
applicable sales charges. Effective at the close of business on June 6, 2003,
certain of the Montgomery Funds were reorganized into certain of the WELLS FARGO
FUNDS. Performance shown for the Class A, Class B and Class C shares of the Fund
for periods prior to October 31, 2001, reflects the performance of the
predecessor fund's Class R shares, adjusted to reflect each Class's fees and
expenses. Performance shown for the Institutional Class shares of the Fund prior
to June 9, 2003, reflects the performance of the predecessor fund's Class R
shares.
(2) The Morgan Stanley Capital International Emerging Markets Free Index (MSCI
EMF) is a free, float-adjusted market capitalization index designed to measure
the equity market performance in the global emerging markets. The Index is
currently comprised of approximately 26 emerging market country indices. You
cannot invest directly in an index.
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Portfolio composition and characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Montgomery Emerging
Markets Focus Fund Class A and Institutional Class shares for the life of the
Fund with the MSCI EMF Index. The chart assumes a hypothetical investment of
$10,000 in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
24
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
Life of Life of
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Montgomery Emerging
Markets Focus Fund - Class A 17.16 72.78 16.96 12.93 24.31 83.32 18.35 14.01
Wells Fargo Montgomery Emerging
Markets Focus Fund - Class B 19.05 77.40 17.86 13.77 24.05 82.40 18.06 13.77
Wells Fargo Montgomery Emerging
Markets Focus Fund - Class C 22.92 81.24 17.27 12.91 23.92 82.24 17.27 12.91
Wells Fargo Montgomery Emerging
Markets Focus Fund - Institutional Class 24.53 84.01 18.70 14.40
Benchmark
MSCI EMF Index 29.26 82.16 10.08 5.00
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75% AND A 2.00%
REDEMPTION FEE IS ASSESSED ON CLASS A SHARES REDEEMED OR EXCHANGED WITHIN THREE
MONTHS AFTER PURCHASE. THE MAXIMUM CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR
CLASS B SHARES IS 5.00%. FOR CLASS C SHARES, THE MAXIMUM CDSC IS 1.00%.
EFFECTIVE FEBRUARY 1, 2004, THE 1.00% FRONT-END SALES CHARGE FOR CLASS C SHARES
WAS ELIMINATED. PERFORMANCE INCLUDING SALES CHARGES ASSUMES THE MAXIMUM SALES
CHARGE FOR THE CORRESPONDING TIME PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD
WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Samsung Electronics Company Limited 5.40%
Cemex SA de CV 4.81%
Companhia Siderurgica Nacional SA 4.62%
JSC MMC Norilsk Nickel ADR 4.45%
State Bank Of India GDR 4.31%
Taiwan Semiconductor Manufacturing Company Limited 4.20%
Caemi Mineracao e Metalurgica SA Preferred 3.54%
Yukos ADR 3.52%
Companhia Energetica de Minas Gerais ADR 3.48%
Cheung Kong Holdings Limited 3.43%
PORTFOLIO COMPOSITION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Brazil 20%
Hong Kong 4%
India 5%
Indonesia 4%
South Korea 10%
Mexico 17%
Poland 3%
Russia 9%
Taiwan 10%
Thailand 3%
U.S. 3%
Cash 12%
CHARACTERISTICS(4) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.99
Price to Earnings Ratio (trailing 12 months) 13.90x
Price to Book Ratio 1.95x
Median Market Cap.($B) $ 4.59
Portfolio Turnover 122%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Montgomery Emerging Wells Fargo Montgomery Emerging
Markets Focus Fund - Class A Markets Focus Fund - Class I MSCI EMF Index
------------------------------- ------------------------------- --------------
12/31/97 9425 10000 10000
01/31/98 8921 9470 9216
02/28/98 9963 10580 10178
03/31/98 10768 11440 10619
04/30/98 11281 11990 10504
05/31/98 9743 10360 9064
06/30/98 8780 9340 8113
07/31/98 9029 9610 8371
08/31/98 6518 6940 5950
09/30/98 7210 7680 6328
10/31/98 7769 8280 6994
11/30/98 7972 8500 7576
12/31/98 7429 7924 7466
01/31/99 7780 8302 7346
02/28/99 7672 8190 7417
03/31/99 9207 9834 8395
04/30/99 10226 10927 9433
05/31/99 10690 11427 9378
06/30/99 12556 13429 10443
07/31/99 12455 13327 10159
08/31/99 11543 12356 10251
09/30/99 11405 12214 9904
10/31/99 12057 12918 10115
11/30/99 14701 15757 11022
12/31/99 16434 17623 12424
01/31/00 16465 17664 12498
02/29/00 16584 17799 12663
03/31/00 17619 18918 12725
04/30/00 15845 17021 11519
05/31/00 14989 16109 11043
06/30/00 15976 17177 11432
07/31/00 15410 16576 10844
08/31/00 16337 17581 10897
09/30/00 14992 16140 9945
10/31/00 14350 15456 9224
11/30/00 12958 13963 8418
12/31/00 13530 14586 8621
01/31/01 14778 15938 9808
02/28/01 13933 15033 9040
03/31/01 12983 14014 8152
04/30/01 13632 14721 8555
05/31/01 14117 15252 8657
06/30/01 13466 14555 8480
07/31/01 12412 13422 7944
08/31/01 12233 13235 7865
09/30/01 10393 11249 6648
10/31/01 10917 11821 7060
11/30/01 12002 13006 7798
12/31/01 13052 14039 8417
01/31/02 13633 14678 8702
02/28/02 13952 14982 8845
03/31/02 14513 15611 9377
04/30/02 14784 15904 9438
05/31/02 15084 16239 9287
06/30/02 14029 15108 8590
07/31/02 13333 14354 7937
08/31/02 13110 14113 8059
09/30/02 11552 12447 7190
10/31/02 12278 13243 7656
11/30/02 12742 13746 8183
12/31/02 12329 13298 7912
01/31/03 12087 13057 7877
02/28/03 11739 12680 7665
03/31/03 11661 12596 7447
04/30/03 13452 14545 8111
05/31/03 14090 15237 8693
06/30/03 14777 15986 9188
07/31/03 15765 17062 9763
08/30/03 16887 18285 10418
09/30/03 17197 18612 10494
10/31/03 18726 20278 11387
11/30/03 19190 20784 11527
12/31/03 21116 22882 12363
01/31/04 20894 22640 12802
02/29/04 21358 23156 13393
03/31/04 21377 23178 13565
25
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND (the
Fund) seeks long-term capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Josephine Jimenez, CFA 12/17/93
Frank Chiang
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund returned 29.93(1) for the six-month period ended March 31, 2004,
outperforming the MSCI EMF Index(2), which returned 29.26%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Emerging markets continued to perform well through the end of 2003 and
into 2004. The Fund held positions in companies in Asia, Eastern Europe and
Latin America, which continued to benefit from low interest rates, improved
earnings and strong basic materials prices. The economies of China, Mexico and
Brazil continued to grow, benefiting from their ties to the U.S. economy, while
the stock markets of Korea, Taiwan, Argentina and Russia registered double-digit
gains by the end of the reporting period. The recovery in corporate profits
throughout many important sectors, including consumer discretionary and
industrials, in these countries contributed significantly to Fund performance.
The Brazilian government's very strict monetary policy put downward
pressure on the country's stocks, which detracted from the Fund's performance in
recent months. After contributing strong gains to performance in the fourth
quarter of 2003, the Fund's holdings in Thailand suffered from concerns over
terrorism and avian influenza, or "bird flu."
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We reduced the Fund's exposure to Brazil at the end of the reporting
period but continued to maintain an overweight position, as we remain positive
about its leadership in the region's economic recovery. After reducing our
exposure in the fourth quarter of 2003, in 2004 we increased the Fund's exposure
to Mexico with companies experiencing strong profits growth and added to the
Fund's positions in Chile and Indonesia, based on our positive outlook for basic
materials demand. We also increased the Fund's exposure to India, as the
country's agricultural and software sectors continued to grow. We capitalized on
Russia's strong performance over the past several quarters and reduced the
Fund's exposure, though higher oil prices and increasing political stability
continue to benefit the country. On a sector basis, we added slightly to the
Fund's consumer discretionary and industrials holdings while reducing positions
in consumer staples, financial, and telecommunication services.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We remain optimistic that inflation will not dampen growth significantly,
but are cautious about the potential for rising interest rates to negatively
impact growth in emerging markets. We anticipate continued strong demand for
basic materials, higher energy prices and a continued recovery in capital
spending, but will watch carefully the economic impact of coming elections in
many countries. Within this investment backdrop, we remain focused on
fundamentals and overall security valuation within the Fund's portfolio.
Investing in foreign securities entails additional risks that may not be
present in domestic securities, including currency fluctuation, political and
diplomatic instability, regulatory and liquidity risks, foreign taxation and
differences in auditing and other financial standards. In addition to the
greater exposure to the risks of foreign investing, emerging markets present
considerable additional risks, including potential instability of emerging
market countries and the increased susceptibility of emerging market economies
to financial, economic and market events.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND.
(1) The Fund's Adviser has committed through January 31, 2005 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 Select Class shares of the Wells Fargo Montgomery
Institutional Emerging Markets Fund for periods prior to June 9, 2003, reflects
the performance of the single class of shares of the Montgomery Institutional
Series: Emerging Markets Portfolio (the accounting survivor of a merger of the
Montgomery Institutional Series: Emerging Markets Portfolio and the Wells Fargo
Montgomery Institutional Emerging Markets Fund), its predecessor fund. Effective
at the close of business on June 6, 2003, certain of the Montgomery Funds were
reorganized into certain of the WELLS FARGO FUNDS.
(2) The Morgan Stanley Capital International Emerging Markets Free (MSCI EMF)
Index is a free, float-adjusted market capitalization index designed to measure
the equity market performance in the global emerging markets. The Index is
currently comprised of approximately 26 emerging market country indices. You
cannot invest directly in an index.
26
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Excluding Sales Charge
------------------------------------
6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ -------
Wells Fargo Montgomery Institutional Emerging Markets Fund - Select Class 29.93 85.69 11.64 2.48
Benchmark
MSCI EMF Index 29.26 82.16 10.08 2.08
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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 MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
SELECT CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Samsung Electronics Company Limited 5.74%
Petroleo Brasileiro SA ADR 3.89%
Companhia Siderurgica Nacional SA 3.16%
State Bank of India GDR 2.81%
Taiwan Semiconductor Manufacturing Company Limited 2.77%
ABSA Group Limited 2.56%
Hyundai Motor Company Limited 2.19%
Cemex SA de CV 2.13%
Anglo American plc 1.93%
Shinhan Financial Group Company Limited 1.84%
PORTFOLIO COMPOSITION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Argentina 1%
Brazil 14%
Chile 1%
China 4%
Greece 1%
Hong Kong 1%
Hungary 2%
India 6%
Indonesia 3%
South Korea 14%
Malaysia 3%
Mexico 9%
Russia 5%
South Africa 8%
Taiwan 14%
Thailand 4%
U.S. 5%
Cash 4%
Others 1%
Argentina 1%
Brazil 14%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.02
Price to Earnings Ratio (trailing 12 months) 19.38x
Price to Book Ratio 2.79x
Median Market Cap.($B) $4.49
Portfolio Turnover 50%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENTS (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Montgomery Institutional
Emerging Markets Fund - Select Class MSCI EMF Index
------------------------------------ --------------
3/31/1994 10000 10000
4/30/1994 9982 9800
5/31/1994 10304 10135
6/30/1994 9703 9856
7/31/1994 10291 10469
8/31/1994 11412 11768
9/30/1994 11561 11902
10/31/1994 11525 11687
11/30/1994 10875 11080
12/31/1994 10227 10190
1/31/1995 9101 9106
2/28/1995 9130 8872
3/31/1995 9070 8928
4/30/1995 9235 9329
5/31/1995 9850 9825
6/30/1995 9905 9854
7/31/1995 10187 10076
8/31/1995 9792 9838
9/30/1995 9714 9791
10/31/1995 9397 9417
11/30/1995 9145 9249
12/31/1995 9498 9659
1/31/1996 10161 10346
2/29/1996 9950 10181
3/31/1996 10105 10260
4/30/1996 10647 10671
5/31/1996 10825 10623
6/30/1996 10910 10689
7/31/1996 10243 9959
8/31/1996 10547 10214
9/30/1996 10636 10302
10/31/1996 10414 10027
11/30/1996 10634 10195
12/31/1996 10738 10241
1/31/1997 11609 10940
2/28/1997 12007 11409
3/31/1997 11728 11109
4/30/1997 11737 11129
5/31/1997 12177 11447
6/30/1997 13140 12060
7/31/1997 13583 12240
8/31/1997 12186 10682
9/30/1997 12638 10978
10/31/1997 10464 9177
11/30/1997 10116 8842
12/31/1997 10527 9055
1/31/1998 9364 8345
2/28/1998 9999 9216
3/31/1998 10274 9616
4/30/1998 10420 9511
5/31/1998 9092 8208
6/30/1998 8139 7347
7/31/1998 8527 7580
8/31/1998 5977 5388
9/30/1998 6212 5730
10/31/1998 6610 6333
11/30/1998 7179 6860
12/31/1998 6844 6760
1/31/1999 6647 6651
2/28/1999 6482 6716
3/31/1999 7367 7601
4/30/1999 8206 8542
5/31/1999 8028 8492
6/30/1999 8933 9456
7/31/1999 8727 9199
8/31/1999 8750 9283
9/30/1999 8446 8968
10/31/1999 8725 9159
11/30/1999 9710 9981
12/31/1999 11420 11250
1/31/2000 11458 11317
2/29/2000 11772 11467
3/31/2000 11682 11522
4/30/2000 10592 10430
5/31/2000 10343 9999
6/30/2000 10757 10351
7/31/2000 10258 9819
8/31/2000 10677 9867
9/30/2000 9580 9006
10/31/2000 8914 8353
11/30/2000 7936 7622
12/31/2000 8286 7806
1/31/2001 9262 8881
2/28/2001 8382 8186
3/31/2001 7623 7382
4/30/2001 7991 7747
5/31/2001 8380 7839
6/30/2001 8071 7678
7/31/2001 7458 7193
8/31/2001 7328 7122
9/30/2001 6261 6020
10/31/2001 6668 6393
11/30/2001 7484 7061
12/31/2001 7968 7621
1/31/2002 8215 7879
2/28/2002 8294 8009
3/31/2002 8753 8491
4/30/2002 8797 8546
5/31/2002 8682 8410
6/30/2002 7943 7779
7/31/2002 7343 7187
8/31/2002 7379 7298
9/30/2002 6620 6510
10/31/2002 7084 6933
11/30/2002 7564 7410
12/31/2002 7305 7164
1/31/2003 7292 7133
2/28/2003 7062 6940
3/31/2003 6881 6743
4/30/2003 7646 7344
5/31/2003 8172 7871
6/30/2003 8555 8320
7/30/2003 9109 8841
8/31/2003 9690 9434
9/30/2003 9834 9503
10/31/2003 10610 10311
11/30/2003 10854 10438
12/31/2003 11830 11195
1/31/2004 11999 11592
2/29/2004 12599 12127
3/31/2004 12778 12283
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Portfolio composition and characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Montgomery
Institutional Emerging Markets Fund Select Class shares for the most recent 10
years with the MSCI EMF Index. The chart assumes a hypothetical investment of
$10,000 in the Select Class shares and reflects all operating expenses.
27
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO MONTGOMERY MID CAP GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO MONTGOMERY MID CAP GROWTH FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, Wells Capital Management
LLC Incorporated
FUND MANAGERS INCEPTION DATE
Jerome "Cam" Philpott, CFA 12/30/94
Stuart Roberts
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 20.43%(1) for the six-month period
ended March 31, 2004, excluding sales charges. The Fund's Class A shares
underperformed the Russell 2000(R) Index(2), which returned 21.69%, and
outperformed the Russell Midcap(R) Growth Index(3), which returned 17.58%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The Fund outperformed the Russell Midcap(R) Growth Index but not the
Russell 2000(R) Index, which is a blend of value and growth stocks. That
suggests that value stocks outperformed growth stocks during the six-month
period, as investors remained cautious about the economy and global tensions.
Still, strong corporate earnings were the central force for positive stock
price performance for the period. As the six-month period drew to a close, stock
price valuations were compressed by concerns over higher interest rates,
political uncertainty and international terrorism.
The best performing Fund holdings for the six-month reporting period were
Countrywide Financial, a consumer finance company, Ask Jeeves, an Internet
search provider and Brunswick, famous for its bowling equipment. The Fund's
worst performing holdings for the period were all health care related:
Pharmaceutical Resources, MedImmune and Biovail.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We reduced the Fund's weighting in the consumer discretionary and energy
sectors while adding to the Fund's holdings in the technology, industrials and
financial services sectors. Upbeat economic reports would seem to favor the
latter group, as analysts forecast double-digit growth in corporate profits
through late 2004. The stock market's mini-correction in March made technology
and other cyclically sensitive areas of the market appear more attractive.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We continue to be optimistic regarding corporate earnings as well as
equity performance. However, we believe that the markets will continue to be
volatile and trade in a range as investors digest uncertainties regarding the
Presidential election, terrorism and higher interest rates. Overall, though, we
believe that strong company fundamentals will overcome these issues.
Stocks of medium-sized companies may be more volatile and less liquid, in
part because the issuers may be more vulnerable to adverse business or economic
events, than the stocks of larger, more established companies. In particular,
medium-sized companies may have limited product lines, markets and financial
resources, and may depend upon a relatively small management group. Some of the
medium-sized companies in which we invest may have more aggressive capital
structures, including higher debt levels, or are involved in rapidly growing or
changing industries, and/or new technologies.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 MONTGOMERY MID CAP GROWTH FUND.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class A, Class B and Class C shares of the Wells
Fargo Montgomery Mid Cap Growth Fund for periods prior to June 9, 2003, reflects
the performance of the Class R shares of the Montgomery Mid Cap Fund (the
accounting survivor of a merger of the Montgomery Mid Cap Fund and the Wells
Fargo Montgomery Mid Cap Growth Fund), its predecessor fund. Effective at the
close of business on June 6, 2003, certain of the Montgomery Funds were
reorganized into certain of the WELLS FARGO FUNDS. Performance shown for the
Class A shares reflects the performance of the predecessor fund's Class R
shares, adjusted to reflect applicable sales charges. Performance shown for the
Class B and Class C shares reflects the performance of the predecessor fund's
Class R shares, adjusted to reflect each Class's fees and expenses.
(2) The Russell 2000(R) Index measures performance of the 2,000 smallest
companies in the Russell 3000 Index, which represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index. You cannot directly
invest in an index.
(3) The Russell Midcap(R) Growth Index measures the performance of those Russell
Midcap companies with higher price-to book ratios and higher forecasted growth
values. You cannot invest directly in an index.
28
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ----------------------- -------------
Life of Life of
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund
-------- ------ ------ ------- -------- ------- ------ -------
Montgomery Mid Cap Growth Fund - Class A 13.51 43.92 4.06 9.05 20.43 52.70 5.30 9.75
Montgomery Mid Cap Growth Fund - Class B 14.84 46.65 4.19 8.94 19.84 51.65 4.53 8.94
Montgomery Mid Cap Growth Fund - Class C 19.08 50.65 4.53 8.94 20.08 51.65 4.53 8.94
Benchmarks
The Russell 2000(R) Index 21.69 63.83 9.66 11.23
Russell Midcap(R) Growth Index 17.58 49.63 2.29 11.03
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD.
TEN LARGEST EQUITY HOLDINGS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Alliance Data Systems Corporation 3.52%
Marvel Enterprises Incorporated 2.82%
Corinthian Colleges Incorporated 2.80%
United Online Incorporated 2.53%
Andrx Corporation 2.51%
Pharmaceutical Resources Incorporated 2.49%
Countrywide Financial Corporation 2.43%
NII Holdings Incorporated Class B 2.30%
Yahoo! Incorporated 2.15%
GTECH Holdings Corporation 2.12%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 25%
Energy 2%
Financial Services 10%
Health Care 9%
Industrials 15%
Information Technology 32%
Telecommunications Services 5%
Cash 2%
CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.78
Price to Earnings (trailing 12 months) 31.9x
Price to Book Ratio 3.6x
Median Market Cap. ($B) $2.92
Portfolio Turnover 84%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Montgomery
Mid Cap Growth Russell 2000 Russell Midcap
Fund - Class A Index Growth Index
---------------------- ------------ --------------
12/30/1994 9425 10000 10000
12/31/1994 9425 10000 10000
1/31/1995 9504 9874 10120
2/28/1995 9621 10285 10659
3/31/1995 9951 10462 11081
4/30/1995 10069 10694 11175
5/31/1995 10171 10878 11450
6/30/1995 10799 11442 11971
7/31/1995 11389 12101 12724
8/31/1995 11585 12352 12864
9/30/1995 11758 12573 13150
10/31/1995 11365 12011 12818
11/30/1995 11849 12516 13390
12/31/1995 12126 12846 13398
1/31/1996 12055 12832 13634
2/29/1996 12404 13232 14150
3/31/1996 12809 13502 14261
4/30/1996 13904 14224 14951
5/31/1996 14928 14785 15256
6/30/1996 14142 14177 14795
7/31/1996 12690 12940 13646
8/31/1996 13269 13691 14384
9/30/1996 13745 14227 15297
10/31/1996 13707 14008 15118
11/30/1996 14011 14585 16009
12/31/1996 14445 14967 15739
1/31/1997 15094 15266 16435
2/28/1997 14215 14897 16074
3/31/1997 13659 14194 15165
4/30/1997 13608 14233 15537
5/31/1997 15146 15818 16929
6/30/1997 16231 16496 17398
7/31/1997 17136 17263 19063
8/31/1997 17973 17658 18877
9/30/1997 19246 18951 19832
10/31/1997 18622 18119 18839
11/30/1997 18298 18001 19037
12/31/1997 18353 18316 19287
1/31/1998 18407 18027 18940
2/28/1998 19835 19359 20721
3/31/1998 20675 20157 21589
4/30/1998 20666 20268 21882
5/31/1998 19853 19175 20982
6/30/1998 19762 19215 21576
7/31/1998 18398 17659 20652
8/31/1998 15633 14230 16710
9/30/1998 16356 15344 17974
10/31/1998 17431 15970 19297
11/30/1998 18434 16807 20599
12/31/1998 19810 17847 22732
1/31/1999 18843 18084 23414
2/28/1999 17121 16620 22269
3/31/1999 17207 16879 23509
4/30/1999 18078 18391 24580
5/31/1999 17791 18660 24264
6/30/1999 18958 19503 25958
7/31/1999 18365 18969 25132
8/31/1999 17561 18267 24870
9/30/1999 17743 18270 24659
10/31/1999 18575 18345 26565
11/30/1999 20384 19441 29316
12/31/1999 23541 21641 34393
1/31/2000 22378 21293 34386
2/29/2000 25617 24808 41615
3/31/2000 26530 23173 41657
4/30/2000 25182 21778 37614
5/31/2000 24030 20509 34872
6/30/2000 27008 22297 38572
7/31/2000 25845 21579 36129
8/31/2000 30182 23226 41578
9/30/2000 29312 22543 39545
10/31/2000 27986 21537 36839
11/30/2000 24421 19325 28834
12/31/2000 26979 20986 30352
1/31/2001 26767 22079 32086
2/28/2001 23523 20631 26536
3/31/2001 21094 19622 22738
4/30/2001 23425 21156 26528
5/31/2001 23914 21677 26403
6/30/2001 23833 22424 26417
7/31/2001 22561 21211 24636
8/31/2001 21257 20526 22850
9/30/2001 18600 17763 19074
10/31/2001 18633 18802 21079
11/30/2001 19741 20258 23348
12/31/2001 20521 21508 24236
1/31/2002 19400 21284 23449
2/28/2002 18822 20701 22119
3/31/2002 20142 22365 23807
4/30/2002 19726 22569 22547
5/31/2002 18695 21567 21874
6/30/2002 17520 20497 19460
7/31/2002 15441 17402 17570
8/31/2002 15513 17358 17508
9/30/2002 14609 16112 16117
10/31/2002 15115 16629 17366
11/30/2002 15766 18113 18725
12/31/2002 14663 17104 17594
1/31/2003 14428 16630 17421
2/28/2003 14175 16128 17270
3/31/2003 14591 16336 17591
4/30/2003 15857 17884 18789
5/31/2003 17050 19803 20597
6/30/2003 17338 20162 20891
7/31/2003 17919 21424 21637
8/31/2003 18973 22405 22829
9/30/2003 18501 21991 22386
10/31/2003 19918 23838 24190
11/30/2003 20318 24684 24838
12/31/2003 20245 25185 25109
1/31/2004 21372 26278 25938
2/29/2004 21808 26515 26373
3/31/2004 22281 26761 26323
- --------------------------------------------------------------------------------
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
(5) Sector distribution and portfolio characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Montgomery Mid Cap
Growth Fund Class A shares for the life of the Fund with the Russell 2000(R)
Index and the Russell Midcap(R) Growth Index. The chart assumes a hypothetical
investment of $10,000 in Class A shares and reflects all operating expenses and
assumes the maximum initial sales charge of 5.75%.
29
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO MONTGOMERY SMALL CAP FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO MONTGOMERY SMALL CAP FUND (the Fund) seeks long-term
capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Jerome "Cam" Philpott, CFA 7/13/90
Stuart Roberts
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 24.58%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the Russell 2000(R)
Index(2), which returned 21.69%, and outperforming the Russell 2000 Growth(R)
Index(3), which returned 18.97% over the same period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Strong corporate earnings were the central force behind the positive
performance for the six-month period. Small-cap stocks posted significant gains,
although stock prices declined in March due to concerns over higher interest
rates and international terrorism.
Stocks in the technology, industrial and telecommunications sectors were
the most notable contributors to the Fund's performance, while health care
stocks underperformed. The Fund's best performing holdings for the period were
Nextel Partners, a provider of digital mobile communications services; Ask
Jeeves, an Internet search engine; and GTECH Holdings, a global information
technology company.
In the health care sector, Accredo Health, a specialty distributor, was a
strong stock on both earnings growth and a strategic joint venture with Medco
Health Solutions, a pharmacy benefit manager. We sold the Fund's entire position
when the shares achieved our price target. Covance, a clinical research
organization, also had good earnings, and we continue to see accelerating demand
for its services as large pharmaceutical companies outsource research to
specialized providers.
Fund holdings that were the poorest performers included Advisory Board,
Inspire Pharmaceuticals and Pharmaceutical Resources. Pharmaceutical Resources,
a generic drug company, was a poor stock for the portfolio because investors
were concerned that one of its key drugs will face increased generic
competition. We continue to hold the shares in the Fund's portfolio because we
believe that competition is further away than broadly perceived, and we believe
that the company has pending product approvals that should offset earnings
pressure from competitive entrants.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We reduced the Fund's weighting in the consumer discretionary and energy
sectors while adding to the Fund's holdings in the technology, industrials and
materials sectors. The industrial sector includes a wide variety of companies,
especially business services. For example, Sirva Inc., a leading corporate
relocation company, reported strong earnings as the company was able to
significantly increase operating margins.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We are generally optimistic that corporate profits will continue to exceed
expectations and will be the primary contributor to equities' performance. The
central issues that we believe will create tension are uncertainties regarding
potentially higher interest rates, the Presidential race, terrorism and energy
prices. While we cannot control these macroeconomic events, we can control
careful stock selection and will continue to do so.
There are additional risks associated with investments in smaller and/or
newer companies because their shares tend to be less liquid than securities of
larger companies. Further, shares of small and new companies are generally more
sensitive to purchase and sale transactions and changes in the issuer's
financial condition and, therefore, the prices of such stocks may be more
volatile than those of larger company stocks.
- --------------------------------------------------------------------------------
(1) The Fund's Adviser has committed through January 31, 2005 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 Class A, Class B, Class C and Institutional Class
shares of the WELLS FARGO MONTGOMERY SMALL CAP FUND for periods prior to June 9,
2003, reflects the performance of the Class R shares of the Montgomery Small Cap
Fund (the accounting survivor of a merger of the Montgomery Small Cap Fund's
Class P and Class R and the Wells Fargo Montgomery Small Cap Fund's Class A),
its predecessor fund. Effective at the close of business on June 6, 2003,
certain of the Montgomery Funds were reorganized into certain of the WELLS FARGO
FUNDS. Performance shown the Class A shares reflects the performance of the
predecessor fund's Class R shares, adjusted to reflect applicable sales charges.
Performance shown for the Class B and Class C shares of the Fund for periods
prior to June 9, 2003, reflects the performance of the predecessor fund's Class
R shares, adjusted to reflect each Class's fees and expenses. Performance shown
for the Institutional Class shares of the Fund for periods prior to June 9,
2003, reflects the performance of the predecessor fund's Class R shares, and
includes expenses that are not applicable to the Institutional Class shares.
(2) The Russell 2000(R) Index measures performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index. You cannot invest
directly in an index.
(3) The Russell 2000 Growth(R) Index measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an index.
(4) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
(5) Sector distribution and portfolio characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Montgomery Small Cap
Fund Class A and Institutional Class shares for the most recent 10 years with
the Russell 2000(R) Index and Russell 2000 Growth(R) Index. The chart assumes a
hypothetical investment of $10,000 in Class A and Institutional Class shares and
reflects all operating expenses and, for Class A shares, assumes the maximum
initial sales charge of 5.75%.
30
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Montgomery Small Cap Fund -
Class A 17.41 54.59 3.04 6.51 24.58 64.02 4.27 7.14
Wells Fargo Montgomery Small Cap Fund -
Class B 19.12 57.69 3.12 6.34 24.12 62.69 3.48 6.34
Wells Fargo Montgomery Small Cap Fund -
Class C 23.20 61.97 3.51 6.36 24.20 62.97 3.51 6.36
Wells Fargo Montgomery Small Cap Fund -
Institutional Class 24.68 64.16 4.28 7.15
Benchmarks
Russell 2000(R) Index 21.69 63.83 9.66 10.44
Russell 2000 Growth(R) Index 18.97 63.16 2.31 6.45
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Alliance Data Systems Corporation 3.45%
Kroll Incorporated 2.91%
Marvel Enterprises Incorporated 2.74%
United Online Incorporated 2.49%
Andrx Corporation 2.46%
Pharmaceutical Resources Incorporated 2.42%
NII Holdings Incorporated Class B 2.24%
GTECH Holdings Corporation 2.04%
PerkinElmer Incorporated 1.91%
Radio One Incorporated Class D 1.78%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 15%
Energy 1%
Financial Services 6%
Health Care 15%
Industrials 21%
Information Technology 36%
Basic Materials 1%
Telecommunications Services 3%
Cash 2%
CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.84
Price to Earnings Ratio (trailing 12 months) 40.8x
Price to Book Ratio 3.6x
Median Market Cap.($B) $ 1.3
Portfolio Turnover 77%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Montgomery Wells Fargo Montgomery Russell 2000 Russell 2000
Small Cap Fund - Class A Small Cap Fund - Class I Growth Index Index
------------------------ ------------------------ ------------ ------------
3/31/1994 9425 10000 10000 10000
4/30/1994 9425 10000 10015 10059
5/31/1994 8950 9496 9792 9946
6/30/1994 8464 8980 9370 9608
7/31/1994 8721 9253 9504 9766
8/31/1994 9509 10089 10202 10310
9/30/1994 9391 9964 10246 10276
10/31/1994 9297 9864 10357 10236
11/30/1994 8877 9419 9937 9822
12/31/1994 8889 9432 10173 10086
1/31/1995 8877 9419 9966 9959
2/28/1995 9192 9753 10426 10374
3/31/1995 9430 10005 10731 10552
4/30/1995 9412 9986 10893 10786
5/31/1995 9596 10182 11036 10972
6/30/1995 10167 10787 11796 11541
7/31/1995 10791 11449 12715 12206
8/31/1995 11290 11979 12872 12459
9/30/1995 11504 12205 13137 12682
10/31/1995 10915 11581 12490 12115
11/30/1995 11275 11963 13041 12624
12/31/1995 12011 12744 13331 12957
1/31/1996 11992 12723 13220 12943
2/29/1996 12458 13218 13823 13346
3/31/1996 13030 13825 14097 13619
4/30/1996 13831 14675 15179 14347
5/31/1996 14626 15519 15958 14912
6/30/1996 14160 15024 14921 14300
7/31/1996 13161 13964 13099 13051
8/31/1996 13660 14494 14068 13810
9/30/1996 14383 15261 14793 14349
10/31/1996 14070 14929 14155 14128
11/30/1996 14439 15320 14549 14711
12/31/1996 14256 15126 14832 15096
1/31/1997 14528 15414 15203 15398
2/28/1997 13699 14534 14285 15025
3/31/1997 12591 13359 13276 14316
4/30/1997 12281 13030 13122 14356
5/31/1997 14187 15052 15095 15954
6/30/1997 15124 16047 15606 16638
7/31/1997 15969 16943 16405 17412
8/31/1997 16070 17050 16898 17811
9/30/1997 17735 18817 18246 19115
10/31/1997 17208 18258 17149 18275
11/30/1997 17092 18135 16741 18157
12/31/1997 17658 18736 16751 18474
1/31/1998 16849 17877 16529 18183
2/28/1998 18683 19823 17988 19526
3/31/1998 19735 20939 18742 20331
4/30/1998 19501 20691 18856 20443
5/31/1998 18126 19232 17485 19341
6/30/1998 18638 19775 17664 19381
7/31/1998 16984 18020 16189 17811
8/31/1998 12390 13145 12452 14352
9/30/1998 12605 13374 13715 15476
10/31/1998 13423 14242 14431 16108
11/30/1998 14673 15568 15551 16952
12/31/1998 16259 17250 16958 18001
1/31/1999 16356 17353 17721 18240
2/28/1999 14942 15854 16100 16763
3/31/1999 15244 16174 16673 17024
4/30/1999 16215 17205 18145 18550
5/31/1999 16312 17308 18174 18821
6/30/1999 17866 18956 19132 19671
7/31/1999 17909 19002 18541 19132
8/31/1999 17834 18922 17847 18424
9/30/1999 17197 18246 18192 18428
10/31/1999 19236 20410 18657 18504
11/30/1999 20660 21921 20629 19608
12/31/1999 25332 26878 24266 21828
1/31/2000 24955 26477 24041 21477
2/29/2000 29357 31148 29635 25022
3/31/2000 27350 29018 26520 23373
4/30/2000 24113 25584 23842 21966
5/31/2000 20564 21818 21753 20686
6/30/2000 23962 25424 24564 22490
7/31/2000 22268 23627 22459 21765
8/31/2000 25084 26615 24821 23426
9/30/2000 24685 26191 23588 22737
10/31/2000 21869 23203 21672 21723
11/30/2000 17888 18979 17737 19492
12/31/2000 18965 20122 18822 21167
1/31/2001 18822 19971 20345 22269
2/28/2001 17603 18677 17556 20809
3/31/2001 16353 17350 15960 19791
4/30/2001 17778 18862 17913 21339
5/31/2001 18537 19668 18329 21864
6/30/2001 18759 19903 18851 22618
7/31/2001 17667 18745 17243 21394
8/31/2001 16305 17300 16166 20703
9/30/2001 14216 15083 13556 17917
10/31/2001 14564 15452 14861 18965
11/30/2001 15704 16662 16101 20433
12/31/2001 16566 17577 17103 21693
1/31/2002 15352 16289 16495 21468
2/28/2002 14250 15119 15427 20879
3/31/2002 15640 16594 16768 22558
4/30/2002 15688 16645 16406 22763
5/31/2002 14553 15441 15446 21753
6/30/2002 13755 14594 14136 20674
7/31/2002 11806 12526 11964 17552
8/31/2002 11838 12560 11958 17508
9/30/2002 11454 12153 11094 16251
10/31/2002 12013 12746 11656 16773
11/30/2002 12524 13289 12811 18269
12/31/2002 11678 12390 11928 17251
1/31/2003 11342 12034 11604 16773
2/28/2003 11262 11950 11294 16267
3/31/2003 11454 12153 11465 16477
4/30/2003 12588 13356 12550 18039
5/31/2003 13739 14577 13965 19974
6/30/2003 14266 15153 14234 20336
7/31/2003 14969 15882 15310 21609
8/31/2003 15608 16560 16132 22598
9/30/2003 15080 16000 15724 22180
10/31/2003 16614 17645 17082 24044
11/30/2003 17157 18221 17639 24897
12/31/2003 17269 18340 17718 25403
1/31/2004 18275 19407 18649 26505
2/29/2004 18260 19390 18620 26744
3/31/2004 18787 19950 18707 26992
31
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SIFE SPECIALIZED FINANCIAL SERVICES FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo SIFE Specialized Financial Services Fund (the Fund) seeks
long-term capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGER INCEPTION DATE
Michael J. Stead 07/02/62
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 15.11%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the S&P 500
Index(2), which returned 14.07%. The Fund's Class A shares distributed $0.01 per
share in dividend income and $0.85 in capital gains during the period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Our main concern going into the six-month period was the absence of growth
in corporate lending, combined with a slowdown in mortgage refinancing activity.
This was one reason the Fund had an overweight position in the broker/dealer
sector, where cost cutting, combined with increased trading revenues and
investment banking fee income, provided acceptable earnings growth. The Fund
also continued to hold an overweight position in the credit card finance
sub-sector with considerable success.
Fund holdings that were top performers included Capital One Financial
(credit cards) and Banc One, which has a merger pending with J.P. Morgan Chase.
In addition to credit cards, Capital One Financial is involved in unsecured
installment lending and automobile financing. Fund holdings that detracted from
performance included Union Bank of California and Zions Bancorp, a community
banking concern.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Although we expanded the Fund's holdings to invest in broker/dealers and
credit card finance, the Fund's largest position remained in the regional
banking sector, where merger and acquisition activity was heating up.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The Fund's holdings have been selected based on our belief that they will
produce above-average earnings growth rates and, ultimately, share price
appreciation. In addition, the Fund continues to hold smaller community banks
that should benefit from the continued consolidation in the financial services
sector, and we are cautiously expanding the Fund's exposure to the insurance
sub-sector.
The Wells Fargo SIFE Specialized Financial Services Fund focuses in the
financial services sector. Because of the Fund's focus in the financial services
sector, it will be more susceptible than Funds that do not concentrate their
investments to market and other conditions affecting a single group of
industries. The financial services sector involves additional risks because the
sector may be more impacted by changing interest rates and/or economic
conditions and is generally subject to greater regulation than other industries
in the overall stock markets.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 SIFE Specialized Financial Services Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class C shares of the Wells
Fargo SIFE Specialized Financial Services Fund for periods prior to February 25,
2002, reflects performance of the Class A, Class B and Class C of the SIFE Trust
Fund, its predecessor fund. Effective at the close of business on February 22,
2002, the SIFE Trust Fund was reorganized into the WELLS FARGO FUNDS.
Performance shown for the Class A shares prior to February 25, 2002, reflects
the performance of the predecessor portfolio's Class A-1 shares. Performance
shown for the Class B and Class C shares of the Fund for the period form May 1,
1997, to February 22, 2002, reflects the performance of the Class A shares
adjusted to reflect each Class's fees and expenses.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The ten largest holdings are calculated based on the market value of the
securities divided by total market value of the Fund.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo SIFE Specialized
Financial Services Fund Class A shares for the most recent ten years with the
S&P 500 Index. The chart assumes a hypothetical investment of $10,000 in Class A
shares and reflects all operating expenses and assumes the maximum initial sales
charge of 5.75%.
32
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo SIFE Specialized Financial
Services Fund - Class A 8.49 31.92 3.68 12.89 15.11 39.97 4.91 13.56
Wells Fargo SIFE Specialized Financial
Services Fund - Class B 9.75 34.35 3.64 12.56 14.75 39.35 3.99 12.56
Wells Fargo SIFE Specialized Financial
Services Fund - Class C 13.81 38.17 3.95 12.52 14.81 39.17 3.95 12.52
Benchmark
S&P 500 Index 14.07 35.11 (1.20) 11.68
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGE ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Citigroup Incorporated 6.12%
Southtrust Corporation 5.94%
Capital One Financial Corporation 5.71%
Fleetboston Financial Corporation 5.15%
American International Group Incorporated 5.11%
Wachovia Corporation 5.05%
Bank Of America Corporation 5.03%
US Bancorp 4.83%
JP Morgan Chase & Company 4.51%
Merrill Lynch & Company Incorporated 4.16%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Cash 4%
Financial Services 96%
CHARACTERISTICS(4) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.69
Price to Earnings Ratio (trailing 12 months) 15.5x
Price to Book Ratio 2.4x
Median Market Cap.($B) $7.9
Portfolio Turnover 81%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo SIFE Specialized Financial Services
Fund - Class A S&P 500 Index
----------------------------------------------- -------------
3/31/94 9425 10000
4/30/94 9802 10128
5/31/94 10233 10293
6/30/94 10066 10041
7/31/94 10224 10371
8/31/94 10553 10796
9/30/94 10125 10532
10/31/94 9943 10769
11/30/94 9308 10376
12/31/94 9243 10530
1/31/95 9735 10803
2/28/95 10426 11224
3/31/95 10524 11555
4/28/95 10818 11895
5/31/95 11403 12369
6/30/95 11653 12656
7/31/95 12229 13076
8/31/95 12761 13108
9/29/95 13129 13661
10/31/95 12961 13612
11/30/95 13671 14209
12/29/95 13857 14483
1/31/96 14126 14975
2/29/96 14546 15115
3/31/96 14779 15260
4/30/96 14630 15484
5/31/96 14938 15882
6/30/96 14843 15942
7/31/96 14791 15238
8/31/96 15504 15559
9/30/96 16188 16434
10/31/96 16931 16887
11/30/96 18101 18162
12/31/96 17649 17803
1/31/97 18588 18915
2/28/97 19467 19063
3/31/97 18286 18281
4/30/97 19158 19371
5/31/97 19957 20549
6/30/97 20614 21469
7/31/97 22511 23176
8/31/97 21964 21878
9/30/97 23770 23075
10/31/97 23440 22304
11/30/97 24199 23337
12/31/97 25554 23738
1/31/98 24366 23999
2/28/98 26107 25730
3/31/98 27337 27047
4/30/98 27615 27323
5/31/98 26768 26853
6/30/98 27444 27943
7/31/98 27405 27647
8/31/98 21347 23652
9/30/98 22464 25168
10/31/98 24659 27214
11/30/98 25617 28864
12/31/98 26867 30526
1/31/99 26395 31802
2/28/99 26574 30813
3/31/99 26445 32046
4/30/99 28552 33286
5/29/99 27330 32500
6/30/99 27848 34304
7/31/99 26296 33233
8/31/99 25423 33068
9/30/99 24817 32162
10/31/99 28147 34198
11/30/99 26543 34892
12/31/99 24597 36947
1/31/00 23936 35093
2/29/00 21129 34429
3/31/00 24209 37796
4/30/00 23261 36659
5/31/00 25175 35907
6/30/00 22891 36794
7/31/00 24081 36220
8/31/00 26786 38469
9/30/00 27216 36438
10/31/00 27264 36285
11/30/00 26746 33426
12/31/00 29749 33590
1/31/00 30313 34782
2/28/00 29150 31614
3/31/00 28224 29612
4/30/01 28584 31910
5/31/01 30110 32124
6/30/01 30265 31343
7/31/01 30368 31036
8/31/01 29001 29097
9/30/01 27605 26748
10/31/01 26416 27259
11/30/01 28144 29350
12/31/01 28888 29608
1/31/02 28941 29176
2/28/02 28815 28613
3/31/02 30858 29689
4/30/02 30696 27890
5/31/02 30603 27686
6/30/02 29579 25715
7/31/02 27262 23712
8/31/02 27887 23866
9/30/02 25147 21274
10/31/2002 25486 23144
11/30/2002 25961 24505
12/31/2002 24933 23066
1/31/2003 24456 22464
2/28/2003 23979 22127
3/31/03 24014 22340
4/30/03 26477 24181
5/31/03 28051 25453
6/30/03 28324 25778
7/31/03 29145 26232
8/31/03 29145 26744
9/30/03 29200 26460
10/31/03 31119 27955
11/30/03 31256 28201
12/31/03 32202 29679
1/31/04 33045 30225
2/29/04 34056 30645
3/31/04 33612 30182
33
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SMALL CAP GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Small Cap Growth Fund (the Fund) seeks long-term capital
appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management
Incorporated
FUND MANAGERS INCEPTION DATE
Jerome "Cam" Philpott, CFA 11/01/94
Allen J. Ayvazian
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 25.44%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the Russell 2000(R)
Index(2), which returned 21.69%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Strong corporate earnings were the central force behind the Fund's
positive performance for the six-month period. Stock prices declined in March,
however, due to concerns over higher interest rates and international terrorism.
Stock prices showed muted upside when earnings gains soundly beat expectations
and greater than expected losses on even modest earnings disappointments.
The best performing Fund holdings for the six-month reporting period were
Nextel Partners, Ask Jeeves and GTECH Holdings. Nextel Partners provides digital
mobile communications services using the Nextel brand name. Ask Jeeves offers
advanced Internet search technology to the public through advertiser-supported
sites on the Web. GTECH Holdings is a global information technology company
providing software, networks and professional services that facilitate
transaction processing.
The worst performing holdings were all health care related: Advisory
Board, Inspire Pharmaceuticals and Pharmaceutical Resources.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We reduced the Fund's weighting in the consumer discretionary and energy
sectors while adding to the Fund's holdings in the technology, industrials, and
materials sectors. The industrials sector includes a wide variety of companies,
especially business services. Sirva Inc., a leading corporate relocation
company, reported strong earnings, as the company was able to significantly
increase operating margins. Resources Connection, a staffing company, posted
strong results from increased demand for its services in an improving economy.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We are generally optimistic that corporate profits will continue to come
in ahead of expectations. The central issues that we believe will create tension
are uncertainties regarding potentially higher interest rates, the presidential
election race, terrorism and energy prices.
There are additional risks associated with investments in smaller and/or
newer companies because their shares tend to be less liquid than securities of
larger companies. Further, shares of small and new companies are generally more
sensitive to purchase and sale transactions and changes in the issuer's
financial condition and, therefore, the prices of such stocks may be more
volatile than those of larger company stocks.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Small Cap Growth Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class A, Class B, Class C and Institutional Class
shares of the Wells Fargo Small Cap Growth 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 Small Cap Fund (the accounting survivor of a
merger of the Stagecoach Small Cap Fund, the Stagecoach Strategic Growth Fund
and the Norwest Advantage Small Company Stock 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 of the Fund for periods prior to September 16, 1996,
reflects performance of the shares of the Small Capitalization Growth Fund for
BRP Employee Retirement Plans (an unregistered bank collective investment fund),
a predecessor portfolio with the same investment objective and policies as the
Fund. Performance shown for the Class B shares of the Fund for periods prior to
September 16, 1996, reflects performance of the shares of the predecessor
portfolio, with expenses adjusted to reflect Class B sales charges and expenses.
Performance shown for the Class C shares of the Fund for periods prior to
December 15, 1997, reflects the performance of the Class B shares, which as
discussed above, reflects performance of the shares of the predecessor portfolio
for periods prior to September 16, 1996, adjusted for Class C sales charges and
expenses.
34
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
Life of Life of
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Small Cap Growth Fund - Class A 18.24 55.69 1.95 10.37 25.44 65.18 3.17 11.07
Wells Fargo Small Cap Growth Fund - Class B 19.96 59.04 2.03 10.30 24.96 64.04 2.40 10.30
Wells Fargo Small Cap Growth Fund - Class C 23.90 63.00 2.38 10.28 24.90 64.00 2.38 10.28
Wells Fargo Small Cap Growth Fund -
Institutional Class 25.62 65.71 3.43 11.65
Benchmark
Russell 2000(R) Index 21.69 63.83 9.66 10.84
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Alliance Data Systems Corporation 3.61%
Kroll Incorporated 2.96%
Marvel Enterprises Incorporated 2.81%
United Online Incorporated 2.53%
Pharmaceutical Resources Incorporated 2.48%
Andrx Corporation 2.48%
NII Holdings Incorporated Class B 2.29%
Sylvan Learning Systems Incorporated 2.16%
GTECH Holdings Corporation 2.07%
PerkinElmer Incorporated 2.01%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 15%
Energy 1%
Financial Services 6%
Health Care 15%
Industrials 21%
Information Technology 36%
Basic Materials 1%
Telecommunications Services 4%
Cash 1%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.08
Price to Earnings Ratio (trailing 12 months) 41.10x
Price to Book Ratio 3.51x
Median Market Cap. ($B) $1.28
Portfolio Turnover 85%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Small Cap Wells Fargo Small Cap
Growth Fund - Class A Growth Fund - Class I Russell 2000 Index
--------------------- --------------------- ------------------
1/11/1994 9425 10000 10000
11/30/94 9548 10120 9596
12/31/94 9943 10560 9853
1/31/95 9972 10590 9729
2/28/95 10518 11170 10134
3/31/95 11074 11770 10307
4/30/95 11385 12100 10536
5/31/95 11631 12370 10717
6/30/95 12856 13670 11273
7/31/95 14260 15170 11923
8/31/95 14288 15200 12169
9/30/95 15174 16150 12387
10/31/95 14703 15650 11834
11/30/95 16098 17150 12331
12/31/95 16814 17910 12656
1/31/96 17144 18260 12642
2/29/96 18134 19320 13037
3/31/96 18963 20210 13303
4/30/96 21489 22910 14014
5/31/96 23148 24680 14566
6/30/96 21404 22830 13968
7/31/96 18266 19490 12748
8/31/96 20217 21580 13489
9/30/96 20649 22450 14016
10/31/96 19260 20930 13801
11/30/96 19711 21430 14369
12/31/96 20327 22110 14746
1/31/97 20631 22440 15041
2/28/97 18773 20430 14677
3/31/97 17457 19010 13984
4/30/97 16519 18000 14023
5/31/97 20134 21940 15584
6/30/97 21771 23730 16252
7/31/97 22636 24690 17008
8/31/97 23353 25470 17397
9/30/97 25873 28230 18671
10/31/97 24016 26210 17851
11/30/97 23151 25280 17735
12/31/97 22582 24668 18046
1/31/98 22211 24275 17761
2/28/98 23704 25921 19073
3/31/98 25668 28078 19859
4/30/98 25598 28013 19968
5/31/98 23574 25812 18892
6/30/98 24295 26618 18931
7/31/98 22111 24243 17398
8/31/98 16571 18174 14019
9/30/98 17893 19634 15117
10/31/98 17893 19645 15734
11/30/98 19246 21138 16558
12/31/98 21233 23339 17583
1/31/99 22371 24588 17817
2/28/99 19977 21973 16374
3/31/99 21656 23834 16629
4/30/99 23693 26084 18119
5/29/99 24267 26732 18384
6/30/99 26769 29501 19215
7/31/99 27094 29890 18688
8/31/99 26791 29548 17997
9/30/99 28416 31410 18000
10/31/99 32338 35769 18074
11/30/99 37032 40968 19153
12/31/99 46438 51390 21321
1/31/00 47053 52072 20978
2/29/00 58399 64642 24442
3/31/00 50721 56150 22831
4/30/00 44273 48996 21457
5/31/00 39292 43489 20206
6/30/00 49478 54774 21968
7/31/00 46426 51403 21260
8/31/00 52637 58273 22882
9/30/00 51442 56961 22210
10/31/00 44308 49061 21219
11/30/00 33151 36709 19040
12/31/00 35597 39407 20675
1/31/01 35799 39644 21753
2/28/01 28440 31505 20326
3/31/01 24364 26988 19332
4/30/01 28253 31302 20843
5/31/01 28284 31336 21356
6/30/01 28922 32047 22093
7/31/01 27133 30084 20898
8/31/01 24939 27664 20223
9/30/01 20583 22825 17501
10/31/01 23026 25549 18525
11/30/01 24862 27580 19958
12/31/01 26806 29729 21190
1/31/02 25437 28240 20969
2/28/02 23150 25702 20395
3/31/02 25142 27918 22035
4/30/02 23990 26649 22235
5/31/02 22528 25008 21248
6/30/02 20505 22775 20194
7/31/02 16585 18426 17145
8/31/02 16507 18341 17102
9/30/02 15122 16819 15874
10/31/02 16289 18088 16383
11/30/02 17549 19492 17845
12/31/02 16351 18155 16851
1/31/03 15620 17360 16384
2/28/03 15293 16988 15889
3/31/03 15325 17022 16094
4/30/03 16927 18815 17620
5/31/03 18343 20389 19511
6/30/03 19058 21184 19864
7/31/03 20008 22250 21107
8/31/03 20879 23231 22074
9/30/03 20179 22453 21666
10/31/03 22201 24720 23486
11/30/03 22964 25583 24319
12/31/03 23181 25820 24813
1/31/04 24597 27394 25890
2/29/04 24582 27394 26123
3/31/04 25313 28206 26366
- --------------------------------------------------------------------------------
(2) The Russell 2000(R) Index is an unmanaged, market value weighted index that
measures the performance of the 2,000 companies that are between the 1000th and
3000th largest in the market. You cannot invest directly in an index.
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Small Cap Growth Fund
Class A and Institutional Class shares for the life of the Fund with the Russell
2000(R) Index. The chart assumes a hypothetical investment of $10,000 in Class A
and Institutional Class shares and reflects all operating expenses and, for
Class A shares, assumes the maximum initial sales charge of 5.75%.
35
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SMALL CAP OPPORTUNITIES FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Small Cap Opportunities Fund (the Fund) seeks long-term
capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Schroder Investment Management
North America Inc.
FUND MANAGER INCEPTION DATE
Jenny B. Jones 08/01/93
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund returned 21.85%(1) for the six-month period ended March 31, 2004,
outperforming the Russell 2000(R) Index(2), which returned 21.69%. The Fund
distributed no dividend income and $0.96 per share in capital gains during the
period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Consumer staples, technology, health care, automobiles, and
transportation, consumer discretionary and producer durables outperformed, due
primarily to good stock selection. The Fund underperformed in integrated oils,
materials and processing, other energy, utilities and financial services, due to
less advantageous stock selection.
The Fund's best performing holdings were NBTY, a manufacturer and retailer
of nutritional supplements; Network Associates, a supplier of computer security
solutions; and Autodesk, a design software company serving customers in building
design, civil engineering and other industries.
A poor performer for the Fund was Petco Animal Supplies, a specialty
retailer of pet food, supplies and services that has consistently exceeded
profit forecasts. When the retailer's 2003 same-store sales number merely met
expectations, the stock declined. We remain confident about the company's
business prospects.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
We added about 50 companies to the portfolio during the period from a wide
variety of industries and sectors. Examples include California Pizza Kitchen,
Corrections Corp. of America and Renal Care Group. The Fund focuses in the
mid-to-higher end of the market capitalization range in companies that have
sound fundamentals and generate earnings.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Looking further ahead to when the Russell 2000(R) Index changes
composition in June, we see that the median market capitalization will likely be
moving up and away from those smaller stocks that were strong performers in
2003. We believe that this trend bodes well for the Fund, which is concentrated
in larger, fundamentally sound small-cap stocks rather than micro-cap holdings.
The Fund will continue to seek companies that we believe are otherwise
misunderstood or under-followed, and possess strong fundamentals and drivers for
price appreciation.
There are additional risks associated with investments in smaller and/or
newer companies because their shares tend to be less liquid than securities of
larger companies. Further, shares of small and new companies are generally more
sensitive to purchase and sale transactions and changes in the issuer's
financial condition and, therefore, the prices of such stocks may be more
volatile than those of larger company stocks.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Small Cap Opportunities Fund.
(1) The Fund's Adviser has committed through January 31, 2005, 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 Institutional Class shares of the Wells Fargo Small
Cap Opportunities Fund for periods prior to November 8, 1999, reflects
performance of the Institutional Class shares of the Norwest Advantage Small Cap
Opportunities Fund, its predecessor fund. Effective at the close of business
November 5, 1999, the Norwest Advantage Funds were reorganized into the WELLS
FARGO FUNDS.
(2) The Russell 2000(R) Index is an unmanaged index that measures the
performance of the 2,000 companies that are between the 1000th and 3000th
largest in the market. You cannot invest directly in an index.
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Small Cap
Opportunities Fund Institutional Class shares for the most recent ten years with
the Russell 2000(R) Index. The chart assumes a hypothetical investment of
$10,000 in Institutional Class shares and reflects all operating expenses.
36
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Excluding Sales Charge
------------------------------------
6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ -------
Wells Fargo Small Cap Opportunities Fund - Institutional Class 21.85 54.95 17.05 16.07
Benchmark
Russell 2000(R) Index 21.69 63.83 9.66 10.44
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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 MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Network Associates Incorporated 2.79%
Fisher Scientific International Incorporated 2.68%
Amphenol Corporation Class A 2.34%
Platinum Underwriters Holdings Limited 2.32%
Reinsurance Group Of America Incorporated 2.28%
Millipore Corporation 1.91%
NBTY Incorporated 1.90%
Davita Incorporated 1.89%
Stage Stores Incorporated 1.65%
Acxiom Corporation 1.48%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 16%
Consumer Staples 3%
Energy 8%
Financial Services 15%
Health Care 16%
Industrials 12%
Information Technology 18%
Utilities 2%
Telecommunications Services 1%
Basic Materials 3%
Cash 6%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.05
Price to Earnings Ratio (trailing 12 months) 22.60x
Price to Book Ratio 2.56x
Median Market Cap.($B) $ 1.00
Portfolio Turnover 62%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Small Cap
Opportunities Fund - Russell
Class I 2000 Index
--------------------- ----------
3/31/94 10000 10000
4/30/94 10144 10059
5/31/94 10108 9946
6/30/94 9928 9608
7/31/94 10045 9766
8/31/94 10619 10310
9/30/94 10395 10276
10/31/94 10601 10236
11/30/94 10144 9822
12/31/94 10426 10086
1/31/95 10473 9959
2/28/95 11031 10374
3/31/95 11366 10552
4/30/95 11664 10786
5/31/95 11925 10972
6/30/95 12437 11541
7/31/95 13470 12206
8/31/95 13973 12459
9/30/95 14457 12682
10/31/95 14094 12115
11/30/95 14866 12624
12/31/95 15543 12957
1/31/96 15469 12943
2/29/96 15893 13346
3/31/96 16739 13619
4/30/96 17797 14347
5/31/96 18855 14912
6/30/96 18231 14300
7/31/96 16855 13051
8/31/96 17374 13810
9/30/96 18369 14349
10/31/96 18242 14128
11/30/96 18845 14711
12/31/96 19061 15096
1/31/97 19453 15398
2/28/97 19453 15025
3/31/97 18732 14316
4/30/97 18796 14356
5/31/97 21009 15954
6/30/97 22227 16638
7/31/97 23296 17412
8/31/97 23805 17811
9/30/97 25435 19115
10/31/97 24271 18275
11/30/97 24091 18157
12/31/97 24287 18474
1/31/98 23788 18183
2/28/98 25394 19526
3/31/98 26967 20331
4/30/98 27000 20443
5/31/98 25622 19341
6/30/98 25654 19381
7/31/98 23885 17811
8/31/98 19197 14352
9/30/98 19685 15476
10/31/98 20413 16108
11/30/98 21639 16952
12/31/98 22013 18001
1/31/99 21578 18240
2/28/99 20187 16763
3/31/99 20198 17024
4/30/99 21546 18550
5/31/99 22284 18821
6/30/99 23751 19671
7/31/99 23404 19132
8/31/99 22198 18424
9/30/99 22274 18428
10/31/99 22339 18504
11/30/99 23588 19608
12/31/99 25055 21828
1/31/00 24849 21477
2/29/00 26750 25022
3/31/00 29673 23373
4/30/00 29684 21966
5/31/00 28488 20686
6/30/00 30270 22490
7/31/00 29966 21765
8/31/00 33052 23426
9/30/00 32563 22737
10/31/00 31433 21723
11/30/00 29618 19492
12/31/00 32799 21167
1/31/01 33404 22269
2/28/01 32265 20809
3/31/01 31138 19791
4/30/01 33404 21339
5/31/01 34733 21864
6/30/01 35493 22618
7/31/01 35149 21394
8/31/01 34389 20703
9/30/01 31435 17917
10/31/01 32574 18965
11/30/01 34722 20433
12/31/01 37044 21693
1/31/02 36532 21468
2/28/02 35820 20879
3/31/02 37980 22558
4/30/02 37743 22763
5/31/02 36956 21753
6/30/02 34334 20674
7/31/02 30374 17552
8/31/02 30624 17508
9/30/02 28351 16251
10/31/02 29550 16773
11/30/02 31498 18269
12/31/02 30028 17251
1/31/03 29513 16773
2/28/03 28390 16267
3/31/03 28641 16477
4/30/03 29988 18039
5/31/03 32776 19974
6/30/03 33674 20336
7/31/03 35524 21609
8/31/03 37360 22598
9/30/03 36422 22180
10/31/03 38945 24044
11/30/03 40200 24897
12/31/03 41107 25403
1/31/04 43206 26505
2/29/04 44024 26744
3/31/04 44379 26992
37
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SMALL COMPANY GROWTH FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Small Company Growth Fund (the Fund) seeks to provide
long-term capital appreciation by investing in smaller domestic
companies.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Peregrine Capital Management,
Inc.
FUND MANAGERS INCEPTION DATE
Robert B. Mersky, CFA 12/31/82
Paul E. von Kuster, CFA
Daniel J. Hagen, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 18.38%(1) for the six-month period
ended March 31, 2004, excluding sales charges, underperforming the Russell
2000(R) Index(2), which returned 21.69%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
After performing well in the final months of 2003, the Fund lost some
ground in the first quarter of 2004 as value stock outperformed growth stocks
for the six-month period. As a result, the Fund trailed the gains of the Russell
2000(R) Index, which is comprised of both value and growth stocks. In addition,
the Fund's gains were constrained in part by the weak performance of its
technology holdings.
Concerns about the state of the economy and the risk of terrorism
overwhelmed the strong earnings reports and the improving outlook for many of
the Fund's holdings. While the majority of the Fund's stocks met or exceeded
earnings growth expectations during the reporting period, they showed muted
upside movement even though earnings gains soundly beat expectations. Inversely,
the Fund's holdings showed greater than expected losses on even modest earnings
disappointments.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
Purchases and sales during the six-month period followed our disciplined
bottom-up process, and resulted in only minor changes to the Fund's overall
sector weightings, growth prospects and valuation profile. At the end of the
period, 52% of the Fund's assets were invested in small, rapidly growing,
"discovery phase" companies, with the balance in "overlooked stocks"
characterized by rapid near-term earnings gains or undervalued assets. The
Fund's largest sector exposure was in consumer at 22%, followed by health care,
business services, technology and financial services. The Fund's companies had
22% forecast earnings growth and were selling for 18 times forward earnings,
characteristics consistent with our historical average and disciplined
investment approach.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Corporate earnings could outperform expectations during the next year
because both corporate managers and sell-side analysts have been conservative in
their forecasts since the market peak. Non-economic factors could be considered
a bigger than usual wild card this year, particularly the presidential election
and the risk of terrorist strikes, both here and abroad. While these larger
issues impact the overall direction of the stock market, the relative
attractiveness of individual companies ultimately dictates investment success.
As always, we will continue to seek to capitalize on the information in
efficiencies surrounding individual companies that may lead to attractive buying
opportunities.
There are additional risks associated with investments in smaller and/or
newer companies because their shares tend to be less liquid than securities of
larger companies. Further, shares of small and new companies are generally more
sensitive to purchase and sale transactions and changes in the issuer's
financial condition and, therefore, the prices of such stocks may be more
volatile than those of larger company stocks.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Small Company Growth Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a single
master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Performance shown for Class A, Class B and Class C shares of the Wells
Fargo Small Company Growth Fund for periods prior to January 30, 2004, reflects
the performance of the Institutional Class shares of the Fund, adjusted to
reflect applicable sales charges and expenses. Performance shown for the
Institutional Class shares of the Fund for periods prior to November 8, 1999,
reflects performance of the Institutional Class shares of the Norwest Advantage
Small Company Growth 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 Institutional Class
shares of the Fund prior to November 11, 1994, reflects the performance of a
collective investment fund adjusted to reflect Institutional Class expenses.
Wells Fargo Bank, N.A., formerly Norwest Bank Minnesota, N.A., managed the
collective investment fund with an investment objective and principal investment
strategy that were substantially similar to those of the Fund. The collective
investment fund's performance was adjusted to reflect the Fund's 1994 estimate
of its expense ratio for the first year of operations as a mutual fund,
including any applicable sales load (without giving effect to any fee waivers or
expense reimbursements). The collective investment fund was not registered under
the Investment Company Act of 1940 ("1940 Act") nor subject to certain
investment limitations, diversification requirements or other restrictions
imposed by the 1940 Act or the Internal Revenue Code, which, if applicable, may
have adversely affected the Fund's performance results.
(2) The Russell 2000(R) Index is an unmanaged index that measures the
performance of the 2,000 companies that are between the 1000th and 3000th
largest in the market. You cannot invest directly in an index.
(3) Portfolio turnover rate represents the activity from the Fund's investment
in a single Master Portfolio.
(4) The ten largest equity holdings are calculated based on the market value of
the Master Portfolio securities allocable to the Fund divided by total market
value of the Fund. See Notes to the Financial Statements for a discussion of the
Master Trust.
38
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Small Company
Growth Fund - Class A 11.57 48.85 6.50 8.98 18.38 57.93 7.77 9.63
Wells Fargo Small Company
Growth Fund - Class B 12.96 51.79 6.67 8.82 17.96 56.79 6.97 8.82
Wells Fargo Small Company
Growth Fund - Class C 16.92 55.74 6.97 8.81 17.92 56.74 6.97 8.81
Wells Fargo Small Company
Growth Fund - Institutional Class 18.48 58.25 8.03 9.90
Benchmark
Russell 2000(R) Index 21.69 63.83 9.66 10.44
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. PERFORMANCE INCLUDING SALES CHARGES ASSUMES
THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD. INSTITUTIONAL CLASS
SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Brink's Company 1.60%
Polo Ralph Lauren Corporation 1.52%
Cephalon Incorporated 1.43%
Boise Cascade Corporation 1.39%
CSK Auto Corporation 1.36%
Ingram Micro Incorporated Class A 1.36%
Neurocrine Biosciences Incorporated 1.30%
CNet Networks Incorporated 1.29%
Quiksilver Incorporated 1.26%
NBTY Incorporated 1.22%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 18%
Consumer Staples 2%
Energy 4%
Health Care 19%
Financial Services 7%
Industrials 14%
Information Technology 31%
Basic Materials 2%
Cash 3%
CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.30
Price to Earnings Ratio (trailing 12 months) 18.00x
Price to Book Ratio 2.7x
Median Market Cap ($B) $ 0.80
Portfolio Turnover(3) 77%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Small Company Wells Fargo Small Company Russell 2000
Growth Fund - Class A Growth Fund - Class I Index
------------------------- ------------------------- -------------
3/31/94 9425 10000 10000
4/30/94 9568 10154 10059
5/31/94 9272 9842 9946
6/30/94 8850 9396 9608
7/31/94 9126 9691 9766
8/31/94 9730 10334 10310
9/30/94 9669 10272 10276
10/31/94 9678 10283 10236
11/30/94 9247 9827 9822
12/31/94 9694 10305 10086
1/31/95 9675 10287 9959
2/28/95 10227 10876 10374
3/31/95 10513 11182 10552
4/28/95 10672 11354 10786
5/31/95 10775 11466 10972
6/30/95 11632 12380 11541
7/31/95 12785 13610 12206
8/31/95 13262 14121 12459
9/29/95 13551 14432 12682
10/31/95 13069 13921 12115
11/30/95 13454 14334 12624
12/29/95 13488 14374 12957
1/31/96 13504 14394 12943
2/29/96 13949 14871 13346
3/31/96 14248 15193 13619
4/30/96 15369 16392 14347
5/31/96 15846 16904 14912
6/30/96 14892 15890 14300
7/31/96 13891 14825 13051
8/31/96 14977 15987 13810
9/30/96 15564 16617 14349
10/31/96 15220 16254 14128
11/30/96 15778 16853 14711
12/31/96 16121 17222 15096
1/31/97 16671 17814 15398
2/28/97 15996 17095 15025
3/31/97 15251 16302 14316
4/30/97 15124 16170 14356
5/31/97 16700 17860 15954
6/30/97 17895 19141 16638
7/31/97 19250 20595 17412
8/31/97 19558 20928 17811
9/30/97 21007 22484 19115
10/31/97 20476 21920 18275
11/30/97 19924 21333 18157
12/31/97 19645 21039 18474
1/31/98 19514 20903 18183
2/28/98 20975 22473 19526
3/31/98 22048 23628 20331
4/30/98 22177 23770 20443
5/31/98 20387 21857 19341
6/30/98 19972 21415 19381
7/31/98 18739 20098 17811
8/31/98 13964 14980 14352
9/30/98 15043 16141 15476
10/31/98 16092 17270 16108
11/30/98 17020 18269 16952
12/31/98 17812 19123 18001
1/31/99 18351 19706 18240
2/28/99 16368 17580 16763
3/31/99 16258 17466 17024
4/30/99 17433 18732 18550
5/29/99 18158 19514 18821
6/30/99 19305 20752 19671
7/31/99 19281 20730 19132
8/31/99 18093 19458 18424
9/30/99 17871 19223 18428
10/31/99 18020 19386 18504
11/30/99 19470 20951 19608
12/31/99 21164 22779 21828
1/31/00 20948 22551 21477
2/29/00 24669 26562 25022
3/31/00 24869 26783 23373
4/30/00 24072 25929 21966
5/31/00 22898 24670 20686
6/30/00 24438 26334 22490
7/31/00 22829 24606 21765
8/31/00 24816 26754 23426
9/30/00 23888 25758 22737
10/31/00 23323 25154 21723
11/30/00 20028 21605 19492
12/31/00 21606 23313 21167
1/31/01 22663 24458 22269
2/28/01 21429 23131 20809
3/31/01 19656 21222 19791
4/30/01 21462 23176 21339
5/31/01 22468 24267 21864
6/30/01 23212 25076 22618
7/31/01 22568 24385 21394
8/31/01 21907 23676 20703
9/30/01 18270 19750 17917
10/31/01 19409 20986 18965
11/30/01 20733 22422 20433
12/31/01 21687 23458 21693
1/31/02 21052 22776 21468
2/28/02 19855 21486 20879
3/31/02 21413 23176 22558
4/30/02 20712 22422 22763
5/31/02 19977 21631 21753
6/30/02 18806 20368 20674
7/31/02 15723 17032 17552
8/31/02 15862 17187 17508
9/30/02 14551 15769 16251
10/31/02 14958 16214 16773
11/30/02 15970 17314 18269
12/31/02 15229 16514 17251
1/31/03 14890 16151 16773
2/28/03 14695 15942 16267
3/31/03 14968 16242 16477
4/30/03 15945 17305 18039
5/31/03 17667 19177 19974
6/30/03 18199 19759 20336
7/31/03 19341 21004 21609
8/31/03 20258 22004 22598
9/30/03 19969 21695 22180
10/31/03 21546 23413 24044
11/30/03 22035 23949 24897
12/31/03 22841 24830 25403
1/31/04 23764 25839 26505
2/29/04 23748 25821 26744
3/31/04 23639 25703 26992
- --------------------------------------------------------------------------------
(5) Sector distribution and portfolio characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Small Company Growth
Fund Class A and Institutional Class shares for the most recent ten years with
the Russell 2000(R) Index. The chart assumes a hypothetical investment of
$10,000 in Class A and Institutional Class shares and reflects all operating
expenses and, for Class A shares, assumes the maximum initial sales charge of
5.75%.
39
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SMALL COMPANY VALUE FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Small Company Value Fund (the Fund) seeks to provide
long-term capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Peregrine Capital Management,
Inc.
FUND MANAGERS INCEPTION DATE
Tasso H. Coin, Jr., CFA 06/01/97
Douglas G. Pugh, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 20.33%(1), excluding sales charges, for
the six-month period ended March 31, 2004, underperforming the Russell 2000(R)
Index(2), which returned 21.69% during the same period. The Fund's Class A
shares distributed no dividend income and $0.48 per share in capital gains
during the period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Small cap stocks that had higher growth and lower quality characteristics
were market leaders during the reporting period. The Fund's materials and
processing stocks were the top performers for the six months. Strong commodity
pricing helped earnings growth and subsequently, stock prices in this sector.
The Fund's consumer discretionary holdings also performed well during the
period, as consumer purchasing remained strong. On a relative basis, the Fund's
utilities holdings were the star performers, due to strong individual stock
selection.
The Fund's performance lagged that of its benchmark, primarily because of
our decision to underweight the more speculative corner of the financial
services sector. We believed that a recovering economy would eventually push
interest rates higher and put pressure on these financial stocks.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
The Fund is underweight primarily in the regional banks industry in the
financial services sector, as valuations are near their highs. The Fund is also
underweight in the utilities sector, as these stocks have been pushed higher
after the dividend tax cuts legislation took effect and investors actively
sought higher-yielding stocks. The Fund is overweight in technology and cyclical
companies, areas that are most sensitive and exposed to the economic recovery.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We believe that the economy will continue to improve and that the job
market will follow this recovery. Though valuations have moved to more normal
levels given the price recovery in stocks, valuations do remain below that of
the peak last seen in 1998. We believe that stocks may continue to move higher,
barring a slowdown in the economy or a major terror event. We continue to
believe that financial services' stock price performance is not sustainable, as
company fundamentals are not sufficiently strong to support it. Therefore, we
remain underweight in this sector.
There are additional risks associated with investments in smaller and/or
newer companies because their shares tend to be less liquid than securities of
larger companies. Further, shares of small and new companies are generally more
sensitive to purchase and sale transactions and changes in the issuer's
financial condition and, therefore, the prices of such stocks may be more
volatile than those of larger company stocks.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Small Company Value Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a single
master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
Performance shown for the Wells Fargo Small Company Value Fund Class A,
Class B and Institutional Class shares prior to January 31, 2002 and Class C
shares prior to August 31, 2002 in the average annual total return table
reflects the performance of the Wells Fargo Small Company Value Master
Portfolio, a master portfolio in which the Fund invests, adjusted to reflect the
fees and expenses of each share class of the Fund. The Wells Fargo Small Company
Value Master Portfolio, which incepted on June 1, 1997, has a substantially
identical investment objective and investment strategy as the Fund.
(2) The Russell 2000(R) Index is an unmanaged index that measures the
performance of the 2,000 companies that are between the 1000th and 3000th
largest in the market. You cannot invest directly in an index.
(3) Portfolio turnover rate represents the activity from the Fund's investment
in a single Master Portfolio.
(4) The ten largest equity holdings are calculated based on the market value of
the Master Portfolio securities allocable to the Fund divided by the total
market value of the Fund. See Notes to the Financial Statements for a discussion
of the Master Trust.
(5) Sector distribution and portfolio characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Small Company Value
Fund Class A and Institutional Class shares for the life of the Fund with the
Russell 2000(R) Index. The chart assumes a hypothetical investment of $10,000 in
Class A and Institutional Class shares and reflects all operating expenses and,
for Class A shares, assumes the maximum initial sales charge of 5.75%.
40
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
-------------------------------------- --------------------------------------
6-Month* 1-Year 5-Year Life of Fund 6-Month* 1-Year 5-Year Life of Fund
-------- ------ ------ ------------ -------- ------ ------ ------------
Wells Fargo Small Company Value Fund - Class A 13.41 54.24 16.02 11.92 20.33 63.65 17.41 12.89
Wells Fargo Small Company Value Fund - Class B 14.88 57.26 16.30 12.04 19.88 62.26 16.51 12.04
Wells Fargo Small Company Value Fund - Class C 18.79 61.33 16.50 12.03 19.79 62.33 16.50 12.03
Wells Fargo Small Company Value Fund -
Institutional Class 20.36 63.87 17.60 13.07
Benchmark
Russell 2000(R) Index 21.69 63.83 9.66 8.00
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST EQUITY HOLDINGS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
CKE Restaurants Incorporated 1.88%
Joy Global Incorporated 1.67%
WCI Communities Incorporated 1.63%
URS Corporation 1.57%
Tech Data Corporation 1.51%
Intergraph Corporation 1.45%
Arrow International Incorporated 1.43%
Graftech International Limited 1.39%
Steel Dynamics Incorporated 1.36%
Technitrol Incorporated 1.33%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 20%
Energy 3%
Consumer Staples 3%
Financial Services 25%
Health Care 4%
Industrials 18%
Information Technology 11%
Basic Materials 9%
Telecommunications Services 1%
Utilities 2%
Cash 4%
CHARACTERISTICS(3), (5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.87
Price to Earnings Ratio (trailing 12 months) 18.40x
Price to Book Ratio 1.65x
Median Market Cap ($B) $ 0.80
Portfolio Turnover(3) 24%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Small Company Wells Fargo Small Company
Value Fund - Class A Value Fund - Class I Russell 2000 Index
------------------------- ------------------------- ------------------
1/6/1997 9425 10000 10000
6/30/97 10112 10730 10000
7/31/97 10667 11320 10429
8/31/97 10847 11512 10914
9/30/97 11620 12334 11164
10/31/97 11249 11942 11981
11/30/97 11370 12072 11455
12/31/97 11783 12512 11381
1/31/98 11621 12342 11580
2/28/98 12409 13181 11397
3/31/98 12921 13726 12239
4/30/98 13115 13934 12743
5/31/98 12502 13284 12813
6/30/98 12392 13169 12123
7/31/98 11672 12406 12148
8/31/98 9584 10188 11164
9/30/98 9995 10626 8996
10/31/98 10137 10778 9701
11/30/98 10473 11137 10096
12/31/98 10671 11349 10625
1/31/99 10435 11100 11283
2/28/99 9807 10433 11433
3/31/99 9674 10293 10507
4/30/99 10487 11159 10671
5/29/99 11049 11759 11627
6/30/99 11327 12056 11797
7/31/99 11186 11907 12330
8/31/99 10925 11631 11992
9/30/99 10567 11251 11548
10/31/99 10453 11132 11551
11/30/99 10345 11018 11598
12/31/99 10718 11416 12291
1/31/00 9945 10595 13682
2/29/00 9906 10555 13462
3/31/00 10787 11494 15684
4/30/00 10867 11581 14651
5/31/00 10965 11687 13769
6/30/00 10927 11648 12966
7/31/00 11216 11957 14096
8/31/00 12139 12943 13643
9/30/00 11978 12773 14683
10/31/00 11961 12757 14252
11/30/00 11910 12704 13616
12/31/00 13558 14464 12218
1/31/01 13805 14729 13267
2/28/01 13804 14730 13959
3/31/01 13610 14524 13043
4/30/01 14163 15117 12405
5/31/01 14826 15826 13375
6/30/01 15408 16450 13704
7/31/01 15093 16117 14177
8/31/01 15178 16209 13410
9/30/01 13177 14074 12977
10/31/01 13534 14458 11230
11/30/01 14661 15664 11887
12/31/01 15307 16356 12807
1/31/02 15506 16570 13597
2/28/02 16343 17465 13456
3/31/02 17894 19139 13087
4/30/02 18343 19603 14139
5/31/02 17956 19205 14268
6/30/02 17413 18608 13635
7/31/02 14358 15344 12958
8/31/02 14048 15029 11002
9/30/02 13071 13985 10974
10/31/02 13568 14515 10186
11/30/02 14715 15742 10513
12/31/02 14319 15319 11451
1/31/03 13668 14639 10813
2/28/03 12969 13893 10514
3/31/03 13187 14125 10196
4/30/03 14490 15518 10328
5/31/03 15886 17010 11307
6/30/03 16212 17374 12520
7/31/03 17530 18784 12747
8/31/03 18322 19646 13544
9/30/03 17934 19231 14165
10/31/03 19128 20524 13903
11/30/03 19733 21154 15071
12/31/03 20516 22,011 15606
1/31/04 20838 22355 15922
2/29/04 21064 22596 16613
3/31/04 21579 23147 16763
16919
41
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SPECIALIZED HEALTH SCIENCES FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO SPECIALIZED HEALTH SCIENCES FUND (the Fund) seeks
long-term capital appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Dresdner RCM Global Investors
LLC
FUND MANAGER INCEPTION DATE
Selena A. Chaisson, M.D. 04/02/01
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 14.09%(1) for the six-month period
ended March 31, 2004, excluding sales charges, outperforming the S&P 500
Index(2), which returned 14.07%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
A major legislative concern has cast a long shadow over the health care
sector, particularly pharmaceuticals and biotechnology. After much anticipation,
however, Congress passed a Medicare drug benefit, the Medicare Drug Reform plan,
and most of the health care industry actually saw itself benefiting from the
bill's provisions. Indeed, the fourth quarter of 2003 brought a boost to "big
pharma," which saw an 8% increase in their valuations as news of the bill's
passage emerged.
By early 2004, the Fund's holdings in biotechnology proved beneficial for
the Fund, the most influential example being Biogen-Idec, which jumped more than
50% in price. The company announced positive research data from a drug that
treats multiple sclerosis, a disease that up to now has had limited treatment
options.
We continued to emphasize the managed care industry, which reported
better-than-expected profit results early in 2004. Another factor that boosted
the managed care industry was investor reaction to higher reimbursement rates, a
provision of the Medicare Drug Reform plan. Benefactors in the Fund's portfolio
included Aetna, United Healthcare and Wellpoint Health Networks.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
During the reporting period, following the release of positive trial data
showing the significant benefit of certain devices for heart failure patients,
we increased the Fund's holdings of larger medical technology companies that
specialize in these cardiovascular products. We also selectively purchased small
cap medical technology names in the faster growing segments of orthopedics and
lab diagnostics and equipment. We reduced the Fund's holdings in larger-cap
profitable biotechnology stocks that were more mature, as well as drug
distributors that were holding large inventories.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We are optimistic about the biotechnology industry, both in terms of
research breakthroughs as well as the potential for consolidation, which will
particularly benefit small cap biotechnology firms with one or two promising
drugs in their pipelines.
Medical technology continues to be among our favorite sub-sectors, as
demand for orthopedics and cardiovascular services boom. Unlike the big cap
pharmaceutical companies, which face long and risky paths to new product
approvals, the major medical technology companies have been able to introduce
premium-priced, high- quality technology products at a relatively rapid rate.
The WELLS FARGO SPECIALIZED HEALTH SCIENCES FUND is a non-diversified fund
and entails additional risks. Non-diversified funds are more susceptible to
financial, market and economic events affecting the particular issuers and
industry sectors in which they invest. The health sciences sector involves
additional risks because the sector is rapidly changing and may be impacted by
such factors as government regulation, uncertain demand and the risk that
products may become obsolete. Foreign securities involve additional risks
including currency fluctuations, economic and political instability and market
illiquidity.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 SPECIALIZED HEALTH SCIENCES FUND.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
- --------------------------------------------------------------------------------
42
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
-------------------------------- --------------------------------
6-Month* 1-Year Life of Fund 6-Month* 1-Year Life of Fund
-------- ------ ------------ -------- ------ ------------
Wells Fargo Specialized Health
Sciences Fund - Class A 7.53 24.71 0.75 14.09 32.32 2.75
Wells Fargo Specialized Health
Sciences Fund - Class B 8.84 26.31 1.02 13.84 31.31 1.99
Wells Fargo Specialized Health
Sciences Fund - Class C 12.83 30.27 2.02 13.83 31.27 2.02
Benchmark
S&P 500 Index 14.07 35.11 0.63
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGE ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Pfizer Incorporated 8.01%
Medtronic Incorporated 4.75%
Wyeth 4.55%
Anthem Incorporated 4.38%
Aventis SA 3.49%
Amgen Incorporated 3.43%
Genentech Incorporated 3.34%
Biogen Idec Incorporated 3.18%
St Jude Medical Incorporated 3.01%
Eli Lilly & Company 2.98%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Health Care 99%
Cash 1%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.89
Price to Earnings Ratio (trailing 12 months) 38.00x
Price to Book Ratio 4.84x
Median Market Cap. ($B) $46.80
Portfolio Turnover 96%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Specialized Health
S&P 500 Index Sciences Fund - Class A
------------- ------------------------------
1/4/2001 10000 9425
4/30/01 10776 9991
5/31/01 10848 10481
6/30/01 10585 10283
7/31/01 10481 9943
8/31/01 9826 9670
9/30/01 9033 9142
10/31/01 9205 9500
11/30/01 9911 9925
12/31/01 9999 10028
1/31/02 9853 9538
2/28/02 9663 9406
3/31/02 10026 9614
4/30/02 9418 8973
5/31/02 9350 8671
6/30/02 8684 7983
7/31/02 8007 7559
8/31/02 8059 7597
9/30/02 7184 7361
10/31/02 7816 7568
11/30/02 8275 7597
12/31/02 7789 7417
1/31/03 7586 7531
2/28/03 7472 7436
3/31/03 7544 7729
4/30/03 8166 8030
5/31/03 8595 8718
6/30/03 8705 9180
7/31/03 8858 9284
8/31/03 9031 8973
9/30/03 8935 8963
10/31/03 9440 9076
11/30/03 9523 9302
12/31/03 10022 9557
1/31/04 10207 9915
2/29/04 10349 10188
3/31/04 10192 10226
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Specialized Health
Sciences Fund Class A shares for the life of the Fund with the S&P 500 Index.
The chart assumes a hypothetical investment of $10,000 in Class A shares and
reflects all operating expenses and assumes the maximum initial sales charge of
5.75%.
43
WELLS FARGO STOCK FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO SPECIALIZED TECHNOLOGY FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
THE WELLS FARGO SPECIALIZED TECHNOLOGY FUND (the Fund) seeks long-term
capital appreciation by investing in domestic and foreign equity
securities of technology companies.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC RCM Capital Management LLC
FUND MANAGERS INCEPTION DATE
Walter C. Price, Jr., CFA 09/18/00
Huachen Chen, CFA
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 11.96%1 for the six-month period ended
March 31, 2004, excluding sales charges, underperforming the S&P 500 Index(2),
which returned 14.07%.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The latter part of 2003 was a period of strong performance for large cap
stocks, with Intel and Cisco Systems performing particularly well. Although the
Fund owned both Intel and Cisco, it did not have the same substantial
allocations as its peers, and thus underperformed on a relative basis.
The Fund's underweight position in semiconductor companies during the
fourth quarter also hurt relative performance for the six-month period.
Initially, during the early months of 2004, there was euphoria over the strong
results that were reported in January; but by the end of the reporting period,
there were again serious doubts about the durability and strength of the
recovery. Traders sold many of their technology stocks, and negative comments
and skepticism about the continuation of the technology stock surge were common.
We made up some lost ground for the Fund during early 2004 with such stock
selections as Yahoo! Japan and Softbank, two very successful Internet companies.
We reduced the Fund's holdings in Yahoo! Japan significantly, taking substantial
profits, as it has become one of the most valuable Internet companies in the
world.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
After the rally in technology stocks in late March, we have become
cautious about the sector in spite of the fact that business generally has been
good for most companies. We believe that the rates of gain for the economy and
for technology orders are unsustainably high, and will transition to more
moderate levels in the next six months. During the reporting period, we closely
examined the Fund's semiconductor holdings and pared back somewhat in the midst
of strong orders, because we believed that the industry may be peaking.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
As the year progresses, we believe that investors will once again find
technology stocks attractive because the capital spending cycle is just getting
started and the rebound to normal levels could continue for many years. Over
half of capital spending is for technology products that improve productivity,
and the net level of capital spending is lower than it has been in 50 years.
The WELLS FARGO SPECIALIZED TECHNOLOGY FUND is a non-diversified fund and
entails additional risks. Non-diversified funds are more susceptible to
financial, market and economic events affecting the particular issuers and
industry sectors in which they invest. Technology stocks involve additional
risks because such companies are subject to extreme price and volume fluctuation
and investing in the securities of smaller, "start-up" technology companies can
result in significant losses because they may have more limited trading markets.
Foreign securities involve additional risks, including currency fluctuations,
economic and political instability and market illiquidity. Our active trading
investment strategy results in a higher-than-average portfolio turnover ratio
and increased trading expenses, and may generate higher short-term capital
gains.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 SPECIALIZED TECHNOLOGY FUND.
(1) The Fund's Adviser has committed through January 31, 2005 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.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing,among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
44
PERFORMANCE AT A GLANCE WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year Life of the Fund 6-Month* 1-Year Life of the Fund
-------- ------ ---------------- -------- ------ ----------------
Wells Fargo Specialized Technology Fund - Class A 5.52 69.88 (22.06) 11.96 80.33 (20.74)
Wells Fargo Specialized Technology Fund - Class B 6.17 73.33 (22.96) 11.17 78.33 (21.36)
Wells Fargo Specialized Technology Fund - Class C 10.20 76.92 (21.41) 11.20 77.92 (21.41)
Benchmark
S&P 500 Index 14.07 35.11 (5.34)
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT-DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES,THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGE ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD.
TEN LARGEST EQUITY HOLDINGS(3) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Red Hat Incorporated 5.61%
Yahoo! Incorporated 3.99%
Cisco Systems Incorporated 3.52%
Samsung Electronics - GDR 3.50%
Comverse Technology Incorporated 3.26%
National Semiconductor Corporation 3.11%
Network Associates Incorporated 2.96%
Symantec Corporation 2.95%
NCR Corporation 2.91%
Sina Corporation 2.41%
SECTOR DISTRIBUTION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 2%
Cash 24%
Industrials 4%
Information Technology 70%
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.42
Price to Earnings Ratio (trailing 12 months) 55.6x
Price to Book Ratio 4.74x
Median Market Cap.($B) $4.02
Portfolio Turnover 117%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 INVESTMENT(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Specialized
Technology Fund - Class A S&P 500 Index
------------------------- -------------
9/18/00 9425 10000
9529 9945
8426 9903
6909 9123
6437 9168
6795 9493
5014 8628
3/31/01 4326 8082
4637 8709
4373 8768
4232 8554
3827 8471
3327 7941
2846 7300
3261 7440
3789 8010
3968 8081
3817 7963
3252 7809
3/31/02 3582 8103
3167 7612
2950 7556
2686 7018
2432 6472
2375 6514
2102 5806
2432 6317
2714 6688
2328 6295
2337 6131
2319 6039
3/31/03 2300 6097
2573 6600
3025 6947
3205 7036
3421 7159
3648 7299
3704 7222
4090 7630
4053 7697
4015 8100
4298 8249
4156 8364
3/31/04 4147 8238
- --------------------------------------------------------------------------------
(3) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
(4) Sector distribution and portfolio characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Specialized Technology
Fund Class A shares for the life of the Fund with the S&P 500 Index. The chart
assumes a hypothetical investment of $10,000 in Class A shares and reflects all
operating expenses and assumes the maximum initial sales charge of 5.75%.
45
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.05%
N/A WELLS FARGO DISCIPLINED GROWTH PORTFOLIO $ 73,245,938
N/A WELLS FARGO EQUITY INCOME PORTFOLIO 290,861,824
N/A WELLS FARGO INDEX PORTFOLIO 362,500,980
N/A WELLS FARGO INTERNATIONAL EQUITY PORTFOLIO 164,230,553
N/A WELLS FARGO LARGE CAP APPRECIATION PORTFOLIO 36,497,280
N/A WELLS FARGO LARGE CAP VALUE PORTFOLIO 72,871,164
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO 253,093,741
N/A WELLS FARGO OVERSEAS PORTFOLIO 55,073,819
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO 49,118,250
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 48,932,805
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 49,353,042
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $1,062,267,460) 1,455,779,396
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,062,267,460) 100.05% $1,455,779,396
OTHER ASSETS AND LIABILITIES, NET (0.05) (680,797)
------ --------------
TOTAL NET ASSETS 100.00% $1,455,098,599
====== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.05%
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO $142,418,435
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 142,618,759
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 143,079,767
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $362,145,962) 428,116,961
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $362,145,962) 100.05% $428,116,961
OTHER ASSETS AND LIABILITIES, NET (0.05) (229,012)
------ ------------
TOTAL NET ASSETS 100.00% $427,887,949
====== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
47
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.01%
N/A WELLS FARGO EQUITY INCOME PORTFOLIO $1,233,381,348
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $1,220,132,801) 1,233,381,348
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,220,132,801) 100.01% $1,233,381,348
OTHER ASSETS AND LIABILITIES, NET (0.01) (78,853)
------ --------------
TOTAL NET ASSETS 100.00% $1,233,302,495
====== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 97.74%
AMUSEMENT & RECREATION SERVICES - 0.20%
4,273 HARRAH'S ENTERTAINMENT INCORPORATED $ 234,545
13,316 INTERNATIONAL GAME TECHNOLOGY 598,687
833,232
----------
APPAREL & ACCESSORY STORES - 0.48%
34,396 GAP INCORPORATED 753,961
13,055 KOHLS CORPORATION+ 630,948
18,719 LIMITED BRANDS 374,380
5,277 NORDSTROM INCORPORATED 210,552
1,969,841
----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.13%
4,850 JONES APPAREL GROUP INCORPORATED 175,328
4,190 LIZ CLAIBORNE INCORPORATED 153,731
4,149 VF CORPORATION 193,758
522,817
----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.11%
10,561 AUTONATION INCORPORATED+ 180,065
3,350 AUTOZONE INCORPORATED+ 288,000
468,065
----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
2,491 RYDER SYSTEM INCORPORATED 96,476
----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 0.16%
4,751 CENTEX CORPORATION 256,839
1,792 KB HOME 144,794
4,815 PULTE HOMES INCORPORATED 267,714
669,347
----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 1.26%
87,360 HOME DEPOT INCORPORATED 3,263,769
30,193 LOWE'S COMPANIES INCORPORATED 1,694,733
5,597 SHERWIN-WILLIAMS COMPANY 215,093
5,173,595
----------
BUSINESS SERVICES - 6.58%
9,149 ADOBE SYSTEMS INCORPORATED 360,745
4,331 AUTODESK INCORPORATED 136,946
22,650 AUTOMATIC DATA PROCESSING INCORPORATED 951,300
8,644 BMC SOFTWARE INCORPORATED+ 168,990
38,690 CENDANT CORPORATION 943,649
6,301 CITRIX SYSTEMS INCORPORATED+ 136,228
22,345 COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED 600,187
7,202 COMPUTER SCIENCES CORPORATION+ 290,457
14,759 COMPUWARE CORPORATION+ 109,955
5,501 CONVERGYS CORPORATION+ 83,615
49
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
1,940 DELUXE CORPORATION $ 77,794
24,803 EBAY INCORPORATED+ 1,719,592
11,476 ELECTRONIC ARTS INCORPORATED+ 619,245
18,444 ELECTRONIC DATA SYSTEMS CORPORATION 356,891
5,340 EQUIFAX INCORPORATED 137,879
34,078 FIRST DATA CORPORATION 1,436,728
7,472 FISERV INCORPORATED+ 267,273
9,194 IMS HEALTH INCORPORATED 213,852
15,928 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 244,973
7,621 INTUIT INCORPORATED+ 342,030
3,456 MERCURY INTERACTIVE CORPORATION+ 154,829
414,467 MICROSOFT CORPORATION 10,349,241
4,338 MONSTER WORLDWIDE INCORPORATED+ 113,656
3,632 NCR CORPORATION+ 160,026
14,454 NOVELL INCORPORATED+ 164,487
7,295 OMNICOM GROUP INCORPORATED 585,424
200,721 ORACLE CORPORATION+ 2,410,659
10,232 PARAMETRIC TECHNOLOGY CORPORATION+ 46,249
13,974 PEOPLESOFT INCORPORATED+ 258,379
6,574 ROBERT HALF INTERNATIONAL INCORPORATED+ 155,278
19,040 SIEBEL SYSTEMS INCORPORATED+ 219,150
126,205 SUN MICROSYSTEMS INCORPORATED+ 525,013
11,031 SUNGARD DATA SYSTEMS INCORPORATED+ 302,249
11,950 SYMANTEC CORPORATION+ 553,285
12,739 UNISYS CORPORATION+ 181,913
16,417 VERITAS SOFTWARE CORPORATION+ 441,781
25,539 YAHOO! INCORPORATED+ 1,240,940
27,060,888
-----------
CHEMICALS & ALLIED PRODUCTS - 10.79%
60,036 ABBOTT LABORATORIES 2,467,480
8,726 AIR PRODUCTS & CHEMICALS INCORPORATED 437,347
3,456 ALBERTO-CULVER COMPANY CLASS B 151,615
49,529 AMGEN INCORPORATED+ 2,881,102
4,241 AVERY DENNISON CORPORATION 263,833
9,038 AVON PRODUCTS INCORPORATED 685,713
74,531 BRISTOL-MYERS SQUIBB COMPANY 1,805,886
7,200 CHIRON CORPORATION+ 316,872
8,069 CLOROX COMPANY 394,655
20,450 COLGATE PALMOLIVE COMPANY 1,126,795
35,780 DOW CHEMICAL COMPANY 1,441,218
38,313 DU PONT (E.I.) DE NEMOURS & COMPANY 1,617,575
2,970 EASTMAN CHEMICAL COMPANY 126,760
9,876 ECOLAB INCORPORATED 281,762
43,147 ELI LILLY & COMPANY 2,886,534
14,122 FOREST LABORATORIES INCORPORATED+ 1,011,418
8,606 GENZYME CORPORATION+ 404,826
38,665 GILLETTE COMPANY 1,511,801
50
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
1,942 GREAT LAKES CHEMICAL CORPORATION $ 46,317
3,596 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 127,658
9,258 KING PHARMACEUTICALS INCORPORATED+ 155,905
9,504 MEDIMUNE INCORPORATED+ 219,352
85,406 MERCK & COMPANY INCORPORATED 3,774,091
10,195 MONSANTO COMPANY 373,851
292,775 PFIZER INCORPORATED 10,261,764
6,574 PPG INDUSTRIES INCORPORATED 383,264
12,485 PRAXAIR INCORPORATED 463,443
49,623 PROCTER & GAMBLE COMPANY 5,204,460
8,549 ROHM & HAAS COMPANY 340,592
56,488 SCHERING-PLOUGH CORPORATION 916,235
2,662 SIGMA-ALDRICH CORPORATION 147,315
4,145 WATSON PHARMACEUTICALS INCORPORATED+ 177,365
51,136 WYETH 1,920,157
44,324,961
-----------
COMMUNICATIONS - 4.43%
11,982 ALLTEL CORPORATION 597,782
30,468 AT&T CORPORATION 596,259
104,606 AT&T WIRELESS SERVICES INCORPORATED+ 1,423,688
16,302 AVAYA INCORPORATED+ 258,876
70,324 BELLSOUTH CORPORATION 1,947,271
5,537 CENTURYTEL INCORPORATED 152,212
23,636 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 1,000,985
86,427 COMCAST CORPORATION CLASS A+ 2,483,912
42,218 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 1,044,051
67,814 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 292,278
127,002 SBC COMMUNICATIONS INCORPORATED 3,116,629
34,708 SPRINT CORPORATION-FON GROUP 639,668
39,743 SPRINT CORPORATION-PCS GROUP+ 365,636
12,382 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+ 408,730
106,033 VERIZON COMMUNICATIONS INCORPORATED 3,874,446
18,202,423
-----------
DEPOSITORY INSTITUTIONS - 10.56%
13,479 AMSOUTH BANCORPORATION 316,891
55,636 BANK OF AMERICA CORPORATION 4,505,403
29,712 BANK OF NEW YORK COMPANY INCORPORATED 935,928
42,988 BANK ONE CORPORATION 2,343,706
20,987 BB&T CORPORATION 740,841
8,548 CHARTER ONE FINANCIAL INCORPORATED 302,257
197,774 CITIGROUP INCORPORATED 10,224,916
6,733 COMERICA INCORPORATED 365,737
21,691 FIFTH THIRD BANCORP 1,201,031
4,819 FIRST TENNESSEE NATIONAL CORPORATION 229,866
41,079 FLEETBOSTON FINANCIAL CORPORATION 1,844,447
5,833 GOLDEN WEST FINANCIAL CORPORATION 653,004
51
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (continued)
8,807 HUNTINGTON BANCSHARES INCORPORATED $ 195,427
79,026 JP MORGAN CHASE & COMPANY 3,315,141
16,093 KEYCORP 487,457
4,578 M&T BANK CORPORATION 411,333
8,694 MARSHALL & ILSLEY CORPORATION 328,720
16,519 MELLON FINANCIAL CORPORATION 516,880
23,268 NATIONAL CITY CORPORATION 827,876
5,823 NORTH FORK BANCORPORATION INCORPORATED 246,429
8,460 NORTHERN TRUST CORPORATION 394,151
10,645 PNC FINANCIAL SERVICES GROUP 589,946
8,530 REGIONS FINANCIAL CORPORATION 311,516
12,683 SOUTHTRUST CORPORATION 420,568
12,877 STATE STREET CORPORATION 671,278
10,834 SUNTRUST BANKS INCORPORATED 755,238
11,586 SYNOVUS FINANCIAL CORPORATION 283,278
7,240 UNION PLANTERS CORPORATION 216,114
73,717 US BANCORP 2,038,275
50,486 WACHOVIA CORPORATION 2,372,842
34,531 WASHINGTON MUTUAL INCORPORATED 1,474,819
64,968 WELLS FARGO & COMPANY++ 3,681,737
3,450 ZIONS BANCORPORATION 197,340
43,400,392
-----------
EATING & DRINKING PLACES - 0.52%
6,328 DARDEN RESTAURANTS INCORPORATED 156,871
48,446 MCDONALD'S CORPORATION 1,384,102
4,374 WENDY'S INTERNATIONAL INCORPORATED 177,978
11,294 YUM! BRANDS INCORPORATED+ 429,059
2,148,010
-----------
EDUCATIONAL SERVICES - 0.14%
6,762 APOLLO GROUP INCORPORATED CLASS A+ 582,276
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.09%
23,909 AES CORPORATION+ 203,944
4,875 ALLEGHENY ENERGY INCORPORATED+ 66,836
12,295 ALLIED WASTE INDUSTRIES INCORPORATED+ 163,646
6,985 AMEREN CORPORATION 321,939
15,166 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 499,265
15,862 CALPINE CORPORATION+ 74,076
11,752 CENTERPOINT ENERGY INCORPORATED 134,325
6,837 CINERGY CORPORATION 279,565
10,921 CITIZENS COMMUNICATIONS COMPANY+ 141,318
6,186 CMS ENERGY CORPORATION+ 55,365
8,677 CONSOLIDATED EDISON INCORPORATED 382,656
6,422 CONSTELLATION ENERGY GROUP INCORPORATED 256,559
12,456 DOMINION RESOURCES INCORPORATED 800,921
6,483 DTE ENERGY COMPANY 266,775
34,846 DUKE ENERGY CORPORATION 787,520
52
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (continued)
14,466 DYNEGY INCORPORATED CLASS A+ $ 57,285
12,510 EDISON INTERNATIONAL 303,868
24,612 EL PASO CORPORATION 174,991
8,785 ENTERGY CORPORATION 522,707
12,641 EXELON CORPORATION 870,586
12,664 FIRSTENERGY CORPORATION 494,909
7,078 FPL GROUP INCORPORATED 473,164
6,107 KEYSPAN CORPORATION 233,410
4,731 KINDER MORGAN INCORPORATED 298,148
1,690 NICOR INCORPORATED 59,539
10,077 NISOURCE INCORPORATED 214,136
1,430 PEOPLES ENERGY CORPORATION 63,849
16,087 PG&E CORPORATION+ 466,040
3,504 PINNACLE WEST CAPITAL CORPORATION 137,882
6,808 PPL CORPORATION 310,445
9,409 PROGRESS ENERGY INCORPORATED 442,976
9,068 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 426,015
8,724 SEMPRA ENERGY 277,423
28,113 SOUTHERN COMPANY 857,446
7,211 TECO ENERGY INCORPORATED 105,497
12,436 TXU CORPORATION 356,416
22,149 WASTE MANAGEMENT INCORPORATED 668,457
19,896 WILLIAMS COMPANIES INCORPORATED 190,405
15,313 XCEL ENERGY INCORPORATED 272,724
12,713,028
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 9.75%
30,970 ADC TELECOMMUNICATIONS INCORPORATED+ 89,813
13,384 ADVANCED MICRO DEVICES INCORPORATED+ 217,222
14,542 ALTERA CORPORATION+ 297,384
7,623 AMERICAN POWER CONVERSION CORPORATION 175,405
14,351 ANALOG DEVICES INCORPORATED 688,992
6,097 ANDREW CORPORATION+ 106,698
11,931 APPLIED MICRO CIRCUITS CORPORATION+ 68,603
11,627 BROADCOM CORPORATION CLASS A+ 455,430
18,236 CIENA CORPORATION+ 90,633
7,403 COMVERSE TECHNOLOGY INCORPORATED+ 134,290
3,534 COOPER INDUSTRIES LIMITED CLASS A 202,074
16,194 EMERSON ELECTRIC COMPANY 970,345
391,569 GENERAL ELECTRIC COMPANY 11,950,686
248,963 INTEL CORPORATION 6,771,794
65,251 INTERNATIONAL BUSINESS MACHINES CORPORATION 5,992,652
7,679 JABIL CIRCUIT INCORPORATED+ 225,993
55,137 JDS UNIPHASE CORPORATION+ 224,408
7,537 KLA-TENCOR CORPORATION+ 379,488
11,990 LINEAR TECHNOLOGY CORPORATION 443,870
14,554 LSI LOGIC CORPORATION+ 135,934
163,566 LUCENT TECHNOLOGIES INCORPORATED+ 672,256
53
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
12,594 MAXIM INTEGRATED PRODUCTS INCORPORATED $ 593,051
3,016 MAYTAG CORPORATION 95,215
23,396 MICRON TECHNOLOGY INCORPORATED+ 390,947
7,310 MOLEX INCORPORATED 222,151
89,872 MOTOROLA INCORPORATED 1,581,747
6,836 NATIONAL SEMICONDUCTOR CORPORATION+ 303,724
13,249 NETWORK APPLIANCE INCORPORATED+ 284,191
5,887 NOVELLUS SYSTEMS INCORPORATED+ 187,148
6,226 NVIDIA CORPORATION+ 164,927
6,633 PMC-SIERRA INCORPORATED+ 112,562
3,197 POWER-ONE INCORPORATED+ 35,359
3,638 QLOGIC CORPORATION+ 120,090
30,913 QUALCOMM INCORPORATED 2,053,241
6,854 ROCKWELL COLLINS INCORPORATED 216,655
19,920 SANMINA-SCI CORPORATION+ 219,319
5,856 SCIENTIFIC-ATLANTA INCORPORATED 189,383
32,116 SOLECTRON CORPORATION+ 177,601
15,948 TELLABS INCORPORATED+ 137,631
66,517 TEXAS INSTRUMENTS INCORPORATED 1,943,627
2,244 THOMAS & BETTS CORPORATION+ 48,964
2,674 WHIRLPOOL CORPORATION 184,158
13,237 XILINX INCORPORATED+ 503,006
40,058,667
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 0.33%
3,150 FLUOR CORPORATION 121,874
5,713 MOODY'S CORPORATION 404,480
14,495 PAYCHEX INCORPORATED 516,022
3,978 QUEST DIAGNOSTICS INCORPORATED 329,498
1,371,874
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.53%
2,163 BALL CORPORATION 146,608
2,281 CRANE COMPANY 75,273
5,600 FORTUNE BRANDS INCORPORATED 429,128
11,830 ILLINOIS TOOL WORKS INCORPORATED 937,291
17,372 MASCO CORPORATION 528,630
2,237 SNAP-ON INCORPORATED 72,345
2,189,275
-----------
FINANCIAL SERVICES - 0.04%
9,240 JANUS CAPITAL GROUP INCORPORATED 151,351
-----------
FOOD & KINDRED PRODUCTS - 3.82%
1,397 ADOLPH COORS COMPANY CLASS B 97,022
31,283 ANHEUSER-BUSCH COMPANIES INCORPORATED 1,595,433
24,880 ARCHER-DANIELS-MIDLAND COMPANY 419,726
15,783 CAMPBELL SOUP COMPANY 430,402
93,889 COCA COLA COMPANY 4,722,617
54
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (continued)
17,621 COCA COLA ENTERPRISES INCORPORATED $ 425,900
20,615 CONAGRA FOODS INCORPORATED 555,368
14,392 GENERAL MILLS INCORPORATED 671,818
4,258 HERCULES INCORPORATED+ 48,882
4,996 HERSHEY FOODS CORPORATION 413,919
13,519 HJ HEINZ COMPANY 504,123
15,833 KELLOGG COMPANY 621,287
5,273 MCCORMICK & COMPANY INCORPORATED 176,751
9,970 PEPSI BOTTLING GROUP INCORPORATED 296,607
65,667 PEPSICO INCORPORATED 3,536,168
30,378 SARA LEE CORPORATION 664,063
8,633 WM WRIGLEY JR COMPANY 510,383
15,690,469
-----------
FOOD STORES - 0.34%
14,088 ALBERTSON'S INCORPORATED 312,049
28,606 KROGER COMPANY+ 476,004
15,210 STARBUCKS CORPORATION+ 574,177
5,443 WINN-DIXIE STORES INCORPORATED+ 41,367
1,403,597
-----------
FORESTRY - 0.13%
8,440 WEYERHAEUSER COMPANY 552,820
-----------
FURNITURE & FIXTURES - 0.10%
7,369 LEGGETT & PLATT INCORPORATED 174,719
10,536 NEWELL RUBBERMAID INCORPORATED 244,435
419,154
-----------
GENERAL MERCHANDISE STORES - 1.00%
4,489 BIG LOTS INCORPORATED+ 65,090
12,940 DOLLAR GENERAL CORPORATION 248,448
6,609 FAMILY DOLLAR STORES INCORPORATED 237,594
6,941 FEDERATED DEPARTMENT STORES INCORPORATED 375,161
10,483 JC PENNEY COMPANY INCORPORATED 364,599
11,080 MAY DEPARTMENT STORES COMPANY 383,146
8,559 SEARS ROEBUCK & COMPANY 367,695
34,996 TARGET CORPORATION 1,576,220
19,324 TJX COMPANIES INCORPORATED 474,597
4,092,550
-----------
HEALTH SERVICES - 0.63%
12,578 BIOGEN IDEC INCORPORATED+ 699,337
17,147 CAREMARK RX INCORPORATED+ 570,138
19,025 HCA INCORPORATED 772,795
9,327 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 216,480
3,430 MANOR CARE INCORPORATED 121,045
17,846 TENET HEALTHCARE CORPORATION+ 199,161
2,578,956
-----------
55
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HOLDING & OTHER INVESTMENT OFFICES - 0.43%
3,592 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A $ 111,675
15,349 EQUITY OFFICE PROPERTIES TRUST 443,432
10,695 EQUITY RESIDENTIAL 319,246
7,033 PLUM CREEK TIMBER COMPANY 228,432
6,952 PROLOGIS 249,368
7,345 SIMON PROPERTY GROUP INCORPORATED 429,242
1,781,395
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.35%
11,456 BED BATH & BEYOND INCORPORATED+ 478,403
12,466 BEST BUY COMPANY INCORPORATED 644,741
8,084 CIRCUIT CITY STORES INCORPORATED 91,349
6,301 RADIO SHACK CORPORATION 208,941
1,423,434
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.23%
14,567 HILTON HOTELS CORPORATION 236,714
8,833 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 375,844
7,838 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 317,439
929,997
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.88%
30,088 3M COMPANY 2,463,304
2,773 AMERICAN STANDARD COMPANIES INCORPORATED+ 315,429
14,196 APPLE COMPUTER INCORPORATED+ 384,002
64,562 APPLIED MATERIALS INCORPORATED+ 1,380,335
12,856 BAKER HUGHES INCORPORATED 468,987
3,012 BLACK & DECKER CORPORATION 171,503
13,332 CATERPILLAR INCORPORATED 1,054,161
263,890 CISCO SYSTEMS INCORPORATED+ 6,206,693
1,643 CUMMINS INCORPORATED 96,033
9,349 DEERE & COMPANY 647,979
98,311 DELL INCORPORATED+ 3,305,216
7,801 DOVER CORPORATION 302,445
92,859 EMC CORPORATION+ 1,263,811
14,377 GATEWAY INCORPORATED+ 75,911
6,733 INGERSOLL-RAND COMPANY CLASS A 455,487
4,933 LEXMARK INTERNATIONAL INCORPORATED+ 453,836
4,827 PALL CORPORATION 109,525
4,552 PARKER HANNIFIN CORPORATION 257,188
8,969 PITNEY BOWES INCORPORATED 382,169
3,112 STANLEY WORKS 132,820
8,877 SYMBOL TECHNOLOGIES INCORPORATED 122,503
20,049,337
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.90%
10,715 ACE LIMITED 457,102
12,041 AON CORPORATION 336,064
56
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE AGENTS, BROKERS & SERVICE (continued)
6,224 HUMANA INCORPORATED+ $ 118,381
5,416 JEFFERSON-PILOT CORPORATION 297,934
20,359 MARSH & MCLENNAN COMPANIES INCORPORATED 942,622
10,378 MEDCO HEALTH SOLUTIONS INCORPORATED+ 352,852
29,187 METLIFE INCORPORATED 1,041,392
11,367 UNUMPROVIDENT CORPORATION 166,299
3,712,646
-----------
INSURANCE CARRIERS - 4.94%
5,887 AETNA INCORPORATED 528,182
19,690 AFLAC INCORPORATED 790,357
27,014 ALLSTATE CORPORATION 1,228,056
4,102 AMBAC FINANCIAL GROUP INCORPORATED 302,646
100,174 AMERICAN INTERNATIONAL GROUP INCORPORATED 7,147,415
5,309 ANTHEM INCORPORATED+ 481,208
7,210 CHUBB CORPORATION 501,383
5,412 CIGNA CORPORATION 319,416
6,159 CINCINNATI FINANCIAL CORPORATION 267,609
11,186 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 712,548
11,108 JOHN HANCOCK FINANCIAL SERVICES INCORPORATED 485,308
6,834 LINCOLN NATIONAL CORPORATION 323,385
7,120 LOEWS CORPORATION 420,507
5,534 MBIA INCORPORATED 346,982
3,780 MGIC INVESTMENT CORPORATION 242,789
12,316 PRINCIPAL FINANCIAL GROUP INCORPORATED 438,819
8,329 PROGRESSIVE CORPORATION 729,620
20,753 PRUDENTIAL FINANCIAL INCORPORATED 929,319
5,320 SAFECO CORPORATION 229,664
8,754 ST PAUL COMPANIES INCORPORATED 350,248
4,345 TORCHMARK CORPORATION 233,718
38,581 TRAVELERS PROPERTY CASUALTY CORPORATION CLASS B 666,294
24,028 UNITEDHEALTH GROUP INCORPORATED 1,548,364
5,955 WELLPOINT HEALTH NETWORKS INCORPORATED+ 677,203
5,270 XL CAPITAL LIMITED CLASS A 400,731
20,301,771
-----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.11%
9,741 GEORGIA-PACIFIC CORPORATION 328,174
4,065 LOUISIANA-PACIFIC CORPORATION 104,877
433,051
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.94%
18,257 AGILENT TECHNOLOGIES INCORPORATED+ 577,469
5,038 ALLERGAN INCORPORATED 423,998
7,922 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 156,697
2,013 BAUSCH & LOMB INCORPORATED 120,720
23,433 BAXTER INTERNATIONAL INCORPORATED 723,845
9,702 BECTON DICKINSON & COMPANY 470,353
57
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (continued)
9,822 BIOMET INCORPORATED $ 376,772
31,452 BOSTON SCIENTIFIC CORPORATION+ 1,332,936
1,991 C.R. BARD INCORPORATED 194,401
5,909 DANAHER CORPORATION 551,723
11,003 EASTMAN KODAK COMPANY 287,949
11,960 GUIDANT CORPORATION 757,905
46,544 MEDTRONIC INCORPORATED 2,222,476
1,874 MILLIPORE CORPORATION+ 96,286
4,870 PERKINELMER INCORPORATED 100,760
15,981 RAYTHEON COMPANY 500,845
7,180 ROCKWELL AUTOMATION INCORPORATED 248,931
6,624 ST JUDE MEDICAL INCORPORATED+ 477,590
7,659 STRYKER CORPORATION 678,051
3,254 TEKTRONIX INCORPORATED 106,438
7,346 TERADYNE INCORPORATED+ 175,055
6,359 THERMO ELECTRON CORPORATION+ 179,833
4,662 WATERS CORPORATION+ 190,396
30,629 XEROX CORPORATION+ 446,265
9,285 ZIMMER HOLDINGS INCORPORATED+ 685,047
12,082,741
-----------
METAL MINING - 0.33%
7,527 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 294,231
16,589 NEWMONT MINING CORPORATION 773,545
3,561 PHELPS DODGE CORPORATION+ 290,791
1,358,567
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.05%
3,904 VULCAN MATERIALS COMPANY 185,206
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.90%
5,836 EATON CORPORATION 327,925
6,699 HASBRO INCORPORATED 145,703
117,136 HEWLETT-PACKARD COMPANY 2,675,386
3,542 ITT INDUSTRIES INCORPORATED 270,361
113,954 JOHNSON & JOHNSON 5,779,747
16,506 MATTEL INCORPORATED 304,371
5,630 TIFFANY & COMPANY 214,897
76,789 TYCO INTERNATIONAL LIMITED 2,200,005
11,918,395
-----------
MISCELLANEOUS RETAIL - 3.30%
17,588 COSTCO WHOLESALE CORPORATION+ 660,605
15,220 CVS CORPORATION 537,266
3,199 DILLARDS INCORPORATED CLASS A 61,293
2,977 EXPRESS SCRIPTS INCORPORATED+ 222,054
11,924 OFFICE DEPOT INCORPORATED+ 224,410
19,172 STAPLES INCORPORATED 486,777
8,196 TOYS R US INCORPORATED+ 137,693
58
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL (continued)
166,171 WAL-MART STORES INCORPORATED $ 9,918,747
39,352 WALGREEN COMPANY 1,296,648
13,545,493
-----------
MOTION PICTURES - 1.20%
174,814 TIME WARNER INCORPORATED+ 2,947,364
78,620 WALT DISNEY COMPANY 1,964,714
4,912,078
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.74%
43,352 UNITED PARCEL SERVICE INCORPORATED CLASS B 3,027,704
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.55%
49,388 AMERICAN EXPRESS COMPANY 2,560,768
8,866 CAPITAL ONE FINANCIAL CORPORATION 668,762
7,069 COUNTRYWIDE FINANCIAL CORPORATION 677,917
37,308 FANNIE MAE 2,773,850
26,434 FREDDIE MAC 1,561,192
49,058 MBNA CORPORATION 1,355,473
11,143 PROVIDIAN FINANCIAL CORPORATION+ 145,973
17,310 SLM CORPORATION 724,423
10,468,358
-----------
OIL & GAS EXTRACTION - 1.61%
9,662 ANADARKO PETROLEUM CORPORATION 501,071
12,443 APACHE CORPORATION 537,164
6,112 BJ SERVICES COMPANY+ 264,466
7,595 BURLINGTON RESOURCES INCORPORATED 483,270
8,929 DEVON ENERGY CORPORATION 519,221
4,418 EOG RESOURCES INCORPORATED 202,742
16,820 HALLIBURTON COMPANY 511,160
3,872 KERR-MCGEE CORPORATION 199,408
5,628 NABORS INDUSTRIES LIMITED+ 257,481
5,155 NOBLE CORPORATION+ 198,055
14,903 OCCIDENTAL PETROLEUM CORPORATION 686,283
3,998 ROWAN COMPANIES INCORPORATED+ 84,318
22,602 SCHLUMBERGER LIMITED 1,443,138
12,282 TRANSOCEAN INCORPORATED+ 342,545
9,942 UNOCAL CORPORATION 370,638
6,600,960
-----------
PAPER & ALLIED PRODUCTS - 0.66%
4,079 BEMIS COMPANY INCORPORATED 106,054
3,349 BOISE CASCADE CORPORATION 116,043
18,448 INTERNATIONAL PAPER COMPANY 779,612
19,257 KIMBERLY-CLARK CORPORATION 1,215,117
7,721 MEADWESTVACO CORPORATION 218,427
6,037 PACTIV CORPORATION+ 134,323
2,100 TEMPLE-INLAND INCORPORATED 133,014
2,702,590
-----------
59
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PERSONAL SERVICES - 0.15%
6,567 CINTAS CORPORATION $ 285,599
6,845 H & R BLOCK INCORPORATED 349,300
634,899
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.11%
3,450 AMERADA HESS CORPORATION 225,216
2,668 ASHLAND INCORPORATED 124,035
41,074 CHEVRONTEXACO CORPORATION 3,605,476
26,270 CONOCOPHILLIPS 1,833,908
251,786 EXXON MOBIL CORPORATION 10,471,780
13,064 MARATHON OIL CORPORATION 439,865
2,965 SUNOCO INCORPORATED 184,957
16,885,237
-----------
PRIMARY METAL INDUSTRIES - 0.43%
33,416 ALCOA INCORPORATED 1,159,201
3,096 ALLEGHENY TECHNOLOGIES INCORPORATED 37,462
4,817 ENGELHARD CORPORATION 143,980
3,006 NUCOR CORPORATION 184,809
4,345 UNITED STATES STEEL CORPORATION 161,938
3,318 WORTHINGTON INDUSTRIES INCORPORATED 63,606
1,750,996
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.41%
2,573 AMERICAN GREETINGS CORPORATION CLASS A+ 58,587
3,131 DOW JONES & COMPANY INCORPORATED 150,006
10,407 GANNETT COMPANY INCORPORATED 917,273
3,067 KNIGHT-RIDDER INCORPORATED 224,658
7,348 MCGRAW-HILL COMPANIES INCORPORATED 559,477
1,926 MEREDITH CORPORATION 97,379
5,754 NEW YORK TIMES COMPANY CLASS A 254,327
8,225 RR DONNELLEY & SONS COMPANY 248,806
12,677 TRIBUNE COMPANY 639,428
67,164 VIACOM INCORPORATED CLASS B 2,633,500
5,783,441
-----------
RAILROAD TRANSPORTATION - 0.40%
14,283 BURLINGTON NORTHERN SANTA FE CORPORATION 449,915
8,217 CSX CORPORATION 248,893
15,013 NORFOLK SOUTHERN CORPORATION 331,637
9,938 UNION PACIFIC CORPORATION 594,491
1,624,936
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.28%
2,835 COOPER TIRE & RUBBER COMPANY 57,125
6,731 GOODYEAR TIRE & RUBBER COMPANY+ 57,483
10,103 NIKE INCORPORATED CLASS B 786,721
2,261 REEBOK INTERNATIONAL LIMITED 93,492
3,262 SEALED AIR CORPORATION+ 162,219
1,157,040
-----------
60
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES
- - 2.27%
3,981 BEAR STEARNS COMPANIES INCORPORATED $ 349,054
52,088 CHARLES SCHWAB CORPORATION 604,742
4,172 FEDERATED INVESTORS INCORPORATED CLASS B 131,126
9,576 FRANKLIN RESOURCES INCORPORATED 533,192
18,557 GOLDMAN SACHS GROUP INCORPORATED 1,936,423
10,645 LEHMAN BROTHERS HOLDINGS INCORPORATED 882,151
37,255 MERRILL LYNCH & COMPANY INCORPORATED 2,218,908
42,119 MORGAN STANLEY 2,413,419
4,832 T ROWE PRICE GROUP INCORPORATED 260,106
9,329,121
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.14%
51,753 CORNING INCORPORATED+ 578,599
-----------
TOBACCO PRODUCTS - 1.14%
78,585 ALTRIA GROUP INCORPORATED 4,278,953
3,249 RJ REYNOLDS TOBACCO HOLDINGS INCORPORATED 196,565
6,368 UST INCORPORATED 229,885
4,705,403
-----------
TRANSPORTATION BY AIR - 0.32%
4,740 DELTA AIR LINES INCORPORATED+ 37,541
11,456 FEDEX CORPORATION 861,033
30,309 SOUTHWEST AIRLINES COMPANY 430,691
1,329,265
-----------
TRANSPORTATION EQUIPMENT - 2.66%
32,347 BOEING COMPANY 1,328,491
3,595 BRUNSWICK CORPORATION 146,784
5,712 DANA CORPORATION 113,440
21,513 DELPHI CORPORATION 214,270
70,318 FORD MOTOR COMPANY 954,215
7,610 GENERAL DYNAMICS CORPORATION 679,801
21,578 GENERAL MOTORS CORPORATION 1,016,324
6,679 GENUINE PARTS COMPANY 218,537
4,515 GOODRICH CORPORATION 126,736
11,633 HARLEY-DAVIDSON INCORPORATED 620,504
32,974 HONEYWELL INTERNATIONAL INCORPORATED 1,116,170
7,239 JOHNSON CONTROLS INCORPORATED 428,187
17,312 LOCKHEED MARTIN CORPORATION 790,120
2,645 NAVISTAR INTERNATIONAL CORPORATION+ 121,273
7,165 NORTHROP GRUMMAN CORPORATION 705,179
6,720 PACCAR INCORPORATED 377,933
5,288 TEXTRON INCORPORATED 281,057
19,799 UNITED TECHNOLOGIES CORPORATION 1,708,654
10,947,675
-----------
61
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION SERVICES - 0.03%
5,379 SABRE HOLDINGS CORPORATION $ 133,453
------------
WATER TRANSPORTATION - 0.26%
24,189 CARNIVAL CORPORATION 1,086,328
------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.83%
4,309 AMERISOURCEBERGEN CORPORATION 235,616
4,659 BROWN-FORMAN CORPORATION CLASS B 222,048
16,702 CARDINAL HEALTH INCORPORATED 1,150,768
11,175 MCKESSON CORPORATION 336,256
16,982 SAFEWAY INCORPORATED+ 349,489
5,160 SUPERVALU INCORPORATED 157,586
24,754 SYSCO CORPORATION 966,644
3,418,407
------------
WHOLESALE TRADE-DURABLE GOODS - 0.05%
5,019 VISTEON CORPORATION 48,032
3,503 WW GRAINGER INCORPORATED 168,144
216,176
------------
TOTAL COMMON STOCK (COST $224,728,566) 401,688,763
------------
COLLATERAL FOR SECURITIES LENDING - 12.17%
COLLATERAL FOR SECURITY LENDING 50,036,796
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $50,036,796) 50,036,796
------------
RIGHTS - 0.00%
12,100 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS - 2.16%
MUTUAL FUND - 1.99%
8,182,306 WELLS FARGO MONEY MARKET TRUST~ 8,182,306
------------
62
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
US TREASURY BILLS - 0.17%
$ 50,000 US TREASURY BILL^ 0.87% 05/13/2004 $ 49,949
155,000 US TREASURY BILL^ 0.90 05/13/2004 154,837
505,000 US TREASURY BILL^ 0.97 08/12/2004 503,191
707,977
------------
TOTAL SHORT-TERM INVESTMENTS (COST $8,890,283) 8,890,283
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $283,655,645)* 112.07% $460,615,842
OTHER ASSETS AND LIABILITIES, NET (12.07) (49,626,545)
------ ------------
TOTAL NET ASSETS 100.00% $410,989,297
====== ============
+ NON-INCOME EARNING SECURITIES.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $865,951.
^ 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.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
63
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.25%
AMUSEMENT & RECREATION SERVICES - 0.61%
24,140 INTERNATIONAL GAME TECHNOLOGY $ 1,085,334
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 2.88%
46,910 HOME DEPOT INCORPORATED 1,752,558
60,580 LOWE'S COMPANIES INCORPORATED 3,400,355
5,152,913
-----------
BUSINESS SERVICES - 9.74%
62,720 EBAY INCORPORATED+ 4,348,377
64,710 ELECTRONIC ARTS INCORPORATED+ 3,491,752
39,920 INTUIT INCORPORATED+ 1,791,610
150,118 MICROSOFT CORPORATION 3,748,446
60,090 SYMANTEC CORPORATION+ 2,782,167
48,210 VERITAS SOFTWARE CORPORATION+ 1,297,331
17,459,683
-----------
CHEMICALS & ALLIED PRODUCTS - 13.45%
74,410 AMGEN INCORPORATED+ 4,328,430
24,990 ELI LILLY & COMPANY 1,671,831
19,650 GENENTECH INCORPORATED+ 2,079,363
48,850 GILEAD SCIENCES INCORPORATED+ 2,724,364
154,181 PFIZER INCORPORATED 5,404,044
34,640 PROCTER & GAMBLE COMPANY 3,633,043
41,730 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 2,646,099
43,270 WYETH 1,624,789
24,111,963
-----------
COMMUNICATIONS - 0.75%
42,670 INTERACTIVECORP+ 1,347,945
-----------
DEPOSITORY INSTITUTIONS - 3.49%
87,841 CITIGROUP INCORPORATED 4,541,380
31,020 FIFTH THIRD BANCORP 1,717,577
6,258,957
-----------
EDUCATIONAL SERVICES - 2.44%
50,830 APOLLO GROUP INCORPORATED CLASS A+ 4,376,971
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 14.73%
37,250 ANALOG DEVICES INCORPORATED 1,788,373
236,420 GENERAL ELECTRIC COMPANY 7,215,538
213,650 INTEL CORPORATION 5,811,280
60,180 LINEAR TECHNOLOGY CORPORATION 2,227,864
49,400 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,326,246
71,740 NETWORK APPLIANCE INCORPORATED+ 1,538,823
32,510 QUALCOMM INCORPORATED 2,159,314
58,960 TEXAS INSTRUMENTS INCORPORATED 1,722,811
42,690 XILINX INCORPORATED+ 1,622,220
26,412,469
-----------
64
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 3.16%
35,510 COCA COLA COMPANY $ 1,786,153
37,140 PEPSICO INCORPORATED 1,999,989
31,910 WM WRIGLEY JR COMPANY 1,886,519
5,672,661
-----------
FOOD STORES - 2.62%
124,620 STARBUCKS CORPORATION+ 4,704,405
-----------
GENERAL MERCHANDISE STORES - 0.79%
31,300 TARGET CORPORATION 1,409,752
-----------
HEALTH SERVICES - 1.17%
63,290 CAREMARK RX INCORPORATED+ 2,104,393
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 2.64%
56,640 BED BATH & BEYOND INCORPORATED+ 2,365,286
45,700 BEST BUY COMPANY INCORPORATED 2,363,604
4,728,890
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 8.40%
42,790 3M COMPANY 3,503,217
221,613 CISCO SYSTEMS INCORPORATED+ 5,212,338
81,284 DELL INCORPORATED+ 2,732,768
265,780 EMC CORPORATION+ 3,617,266
15,065,589
-----------
INSURANCE CARRIERS - 3.06%
34,881 AMERICAN INTERNATIONAL GROUP INCORPORATED 2,488,759
26,290 WELLPOINT HEALTH NETWORKS INCORPORATED+ 2,989,699
5,478,458
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 12.80%
155,010 BOSTON SCIENTIFIC CORPORATION+ 6,569,324
20,300 DANAHER CORPORATION 1,895,411
19,570 GUIDANT CORPORATION 1,240,151
103,230 MEDTRONIC INCORPORATED 4,929,232
42,620 ST JUDE MEDICAL INCORPORATED+ 3,072,902
21,150 STRYKER CORPORATION 1,872,410
45,660 ZIMMER HOLDINGS INCORPORATED+ 3,368,795
22,948,225
-----------
METAL MINING - 1.53%
58,740 NEWMONT MINING CORPORATION 2,739,046
-----------
MISCELLANEOUS RETAIL - 3.85%
69,440 WAL-MART STORES INCORPORATED 4,144,874
83,590 WALGREEN COMPANY 2,754,290
6,899,164
-----------
65
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.00%
69,230 AMERICAN EXPRESS COMPANY $ 3,589,576
------------
OIL & GAS EXTRACTION - 1.44%
59,776 APACHE CORPORATION 2,580,530
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.24%
81,490 SUNCOR ENERGY INCORPORATED 2,228,752
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.47%
67,216 VIACOM INCORPORATED CLASS B 2,635,539
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES -
2.61%
44,830 GOLDMAN SACHS GROUP INCORPORATED 4,678,011
------------
WHOLESALE TRADE NON-DURABLE GOODS - 2.38%
29,240 CARDINAL HEALTH INCORPORATED 2,014,636
57,830 SYSCO CORPORATION 2,258,262
4,272,898
------------
TOTAL COMMON STOCK (COST $146,188,048) 177,942,124
------------
COLLATERAL FOR SECURITIES LENDING - 16.58%
COLLATERAL FOR SECURITY LENDING 29,725,174
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $29,725,174) 29,725,174
------------
SHORT-TERM INVESTMENTS - 0.86%
MUTUAL FUND - 0.86%
1,539,748 WELLS FARGO MONEY MARKET TRUST~ 1,539,748
------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,539,748) 1,539,748
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $177,452,970)* 116.69% $209,207,046
OTHER ASSETS AND LIABILITIES, NET (16.69) (29,924,931)
------ ------------
TOTAL NET ASSETS 100.00% $179,282,115
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.05%
N/A WELLS FARGO DISCIPLINED GROWTH PORTFOLIO $ 28,093,886
N/A WELLS FARGO INTERNATIONAL EQUITY PORTFOLIO 126,349,412
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO 166,765,575
N/A WELLS FARGO OVERSEAS PORTFOLIO 42,560,291
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO 66,045,568
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 65,686,460
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 66,468,179
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $347,761,720) 561,969,371
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $347,761,720) 100.05% $561,969,371
OTHER ASSETS AND LIABILITIES, NET (0.05) (264,778)
------ ------------
TOTAL NET ASSETS 100.00% $561,704,593
====== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
67
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.02%
N/A WELLS FARGO INDEX PORTFOLIO $1,062,200,960
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $730,420,425) 1,062,200,960
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $730,420,425) 100.02% $1,062,200,960
OTHER ASSETS AND LIABILITIES, NET (0.02) (178,499)
------ --------------
TOTAL NET ASSETS 100.00% $1,062,022,461
====== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
68
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.32%
AUSTRALIA - 4.11%
291,400 AMCOR LIMITED (RUBBER & MISCELLANEOUS PLASTICS
PRODUCTS) $ 1,779,759
1,066,300 BHP BILLITON LIMITED (OIL & GAS EXTRACTION) 9,980,484
456,200 NEWS CORPORATION LIMITED (PRINTING, PUBLISHING &
ALLIED INDUSTRIES) 4,102,819
15,863,062
-----------
AUSTRIA - 0.27%
7,000 ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG
(DEPOSITORY INSTITUTIONS) 1,047,755
-----------
BRAZIL - 0.53%
84,100 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR
(DEPOSITORY INSTITUTIONS) 2,057,927
-----------
CANADA - 2.25%
90,000 CANADIAN NATIONAL RAILWAY COMPANY (RAILROAD
TRANSPORTATION) 3,508,922
44,200 ENCANA CORPORATION (OIL & GAS EXTRACTION) 1,906,561
69,001 LOBLAW COMPANIES LIMITED (FOOD STORES) 3,286,637
8,702,120
-----------
DENMARK - 0.52%
280 A P MOLLER - MAERSK A S (LOCAL & SUB-TRANSIT &
INTERURBAN HIGHWAY PASS TRANSPORTATION) 1,996,616
-----------
FINLAND - 2.34%
302,300 NOKIA OYJ (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT
& COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 6,196,529
227,500 STORA ENSO OYJ (PAPER & ALLIED PRODUCTS) 2,862,831
9,059,360
-----------
FRANCE - 11.11%
44,200 ACCOR SA (METAL MINING) 1,790,835
91,400 ALCATEL SA (COMMUNICATIONS)+ 1,442,200
135,200 ARCELOR SA (PRIMARY METAL INDUSTRIES) 2,452,321
36,450 AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 2,801,813
180,700 AXA (INSURANCE CARRIERS) 3,770,598
77,700 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 4,748,471
58,400 BOUYGUES SA (ENGINEERING CONSTRUCTION) 2,009,487
35,200 BUSINESS OBJECTS SA ADR (BUSINESS SERVICES)+ 1,003,200
9,120 CASINO GUICHARD-PERRACHON SA (FOOD STORES) 874,746
81,500 CREDIT AGRICOLE SA (DEPOSITORY INSTITUTIONS) 2,128,290
133,690 FRANCE TELECOM SA (COMMUNICATIONS) 3,420,535
25,900 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER
SERVICES)+ 1,903,335
38,400 PEUGEOT SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE
STATIONS)+ 1,956,478
68,800 TOTAL SA (OIL & GAS EXTRACTION) 12,631,455
42,933,764
-----------
GERMANY - 6.18%
12,700 ALTANA AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 785,654
68,690 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS)+ 2,793,217
225,900 DEUTSCHE TELEKOM AG (COMMUNICATIONS)+ 4,058,616
47,100 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 3,102,416
36,730 SAP AG (BUSINESS SERVICES) 5,806,909
74,980 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) 5,534,997
69
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (continued)
72,300 T-ONLINE INTERNATIONAL AG (BUSINESS SERVICES)+ $ 861,836
50,800 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 943,908
23,887,553
-----------
GREECE - 0.69%
86,200 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 2,654,622
-----------
HONG KONG - 0.59%
248,700 SUNG HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 2,274,374
-----------
IRELAND - 1.37%
117,500 ANGLO IRISH BANK CORPORATION PLC (DEPOSITORY 1,877,135
INSTITUTIONS)
170,039 BANK OF IRELAND PLC (DEPOSITORY INSTITUTIONS) 2,123,032
8,300 DEPFA BANK PLC (DEPOSITORY INSTITUTIONS) 1,305,577
5,305,744
-----------
ITALY - 3.36%
163,900 BANCO POPOLARE DI VERONA E NOVARA SCRL
(DEPOSITORY INSTITUTIONS) 2,666,744
348,800 ENI SPA (OIL & GAS EXTRACTION) 7,012,520
120,987 MEDIASET SPA (COMMUNICATIONS) 1,342,582
411,600 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 1,962,553
12,984,399
-----------
JAPAN - 24.43%
153,000 CANON INCORPORATED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 7,926,852
123,600 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING
CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 1,577,746
213 EACCESS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT)+ 945,893
39,600 FANUC LIMITED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 2,485,587
820 JAPAN TELECOM HOLDINGS COMPANY LIMITED
(COMMUNICATIONS) 2,017,782
162,200 JFE HOLDINGS INCORPORATED (PRIMARY METAL INDUSTRIES) 4,435,613
86,800 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,985,716
21,400 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 5,216,552
1,026,300 KOMATSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY
& COMPUTER EQUIPMENT) 6,510,866
75,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 1,017,206
912 MITSUBISHI TOKYO FINANCIAL GROUP INCORPORATED
(DEPOSITORY INSTITUTIONS) 9,029,269
174,500 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 2,195,612
618,400 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 6,924,939
551,300 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY
BROKERS, DEALERS, EXCHANGES & SERVICES) 10,041,943
1,760 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 3,890,998
47,300 RINNAI CORPORATION (BUILDING MATERIALS, HARDWARE,
GARDEN SUPPLY & MOBILE HOME DEALERS) 1,270,760
234,600 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 4,192,064
87,600 SHIN-ETSU CHEMICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 3,688,066
198,200 SHINSEI BANK LIMITED (DEPOSITORY INSTITUTIONS) 1,571,731
8,600 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY
& COMPUTER EQUIPMENT) 1,025,866
196,800 TOYOTA MOTOR CORPORATION (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 7,339,684
1,082 UFJ HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS) 6,885,029
64,600 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS
& ALLIED PRODUCTS) 2,222,983
94,398,757
-----------
70
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEXICO - 0.81%
29,760 AMERICA MOVIL SA DE CV ADR SERIES L (COMMUNICATIONS) $ 1,150,224
66,319 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE
PRODUCTS) 1,977,633
3,127,857
-----------
NETHERLANDS - 4.91%
123,700 ASML HOLDING NV (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 2,266,531
38,900 EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY
(TRANSPORTATION BY AIR) 838,959
117,500 ING GROEP NV (FINANCIAL SERVICES) 2,581,783
306,400 KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS NV NY SHARES
(ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 8,879,472
92,800 ROYAL DUTCH PETROLEUM COMPANY (PETROLEUM REFINING
& RELATED INDUSTRIES) 4,407,698
18,974,443
-----------
PORTUGAL - 0.42%
574,100 ELECTRICIDADE DE PORTUGAL SA (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,622,668
-----------
SOUTH KOREA - 0.68%
6,500 SAMSUNG ELECTRONICS (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)++ 953,923
2,030 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC &
OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 1,012,831
4,453 SAMSUNG ELECTRONICS COMPANY LIMITED GDR (ELECTRONIC &
OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 642,345
2,609,099
-----------
SPAIN - 1.76%
440,400 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY
INSTITUTIONS) 4,789,663
96,200 REPSOL YPF SA (OIL & GAS EXTRACTION) 1,993,182
6,782,845
-----------
SWEDEN - 1.80%
77,600 AB SKF CLASS B (PRIMARY METAL INDUSTRIES) 2,809,171
78,500 HENNES & MAURITZ AB CLASS B (APPAREL & OTHER FINISHED
PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS) 2,113,097
733,900 TELEFONAKTIEBOLAGET LM ERICSSON CLASS B
(COMMUNICATIONS)+ 2,033,935
6,956,203
-----------
SWITZERLAND - 10.51%
36,200 COMPAGNIE FINANCIERE RICHEMONT AG (GENERAL MERCHANDISE
STORES) 972,972
86,800 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT
INSTITUTIONS)+ 3,007,870
40,160 HOLCIM LIMITED (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 2,147,721
26,700 NESTLE SA (FOOD & KINDRED PRODUCTS) 6,807,515
174,500 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 7,410,585
44,800 ROCHE HOLDING AG (HEALTH SERVICES) 4,376,209
3,120 SGS SOCIETE GENERALE DE SURVEILLANCE HOLDING SA
(BUSINESS SERVICES) 1,731,349
185,200 STMICROELECTRONICS NV (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 4,365,198
37,800 SWISS REINSURANCE (INSURANCE CARRIERS) 2,604,839
96,600 UBS AG (FINANCIAL SERVICES) 7,175,324
40,599,582
-----------
71
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TAIWAN - 0.42%
157,200 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
ADR (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ $ 1,641,168
------------
UNITED KINGDOM - 18.85%
616,100 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 5,426,583
587,500 BP PLC (OIL & GAS EXTRACTION) 4,923,635
172,800 BRITISH SKY BROADCASTING PLC (COMMUNICATIONS) 2,154,799
620,200 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES) 2,601,691
753,800 COMPASS GROUP PLC (EATING & DRINKING PLACES) 4,966,591
231,900 DIAGEO PLC (FOOD & KINDRED PRODUCTS) 3,021,761
311,900 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 6,122,091
471,600 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 7,011,896
203,000 HSBC HOLDINGS PLC (HONG KONG REGISTERED)
(NON-DEPOSITORY CREDIT INSTITUTIONS) 3,061,506
197,200 RECKITT BENCKISER PLC (CHEMICALS & ALLIED PRODUCTS) 4,874,638
169,500 RIO TINTO PLC (METAL MINING) 4,180,569
155,200 ROYAL BANK OF SCOTLAND GROUP PLC (DEPOSITORY
INSTITUTIONS) 4,729,218
378,200 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 3,722,152
391,900 TESCO PLC (FOOD & KINDRED PRODUCTS) 1,770,035
4,485,800 VODAFONE GROUP PLC (COMMUNICATIONS) 10,614,518
361,700 WPP GROUP PLC (COMMUNICATIONS) 3,659,476
72,841,159
------------
USA - 0.41%
55,350 UTSTARCOM INCORPORATED (COMMUNICATIONS)+ 1,591,866
------------
TOTAL COMMON STOCK (COST $305,870,478) 379,912,943
------------
COLLATERAL FOR SECURITIES LENDING - 5.39%
COLLATERAL FOR SECURITY LENDING 20,823,301
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $20,823,301) 20,823,301
------------
SHORT-TERM INVESTMENTS - 1.50%
MUTUAL FUND - 1.50%
5,801,872 WELLS FARGO MONEY MARKET TRUST~ 5,801,872
------------
TOTAL SHORT-TERM INVESTMENTS (COST $5,801,872) 5,801,872
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $332,495,651)* 105.21% $406,538,116
OTHER ASSETS AND LIABILITIES, NET (5.21) (20,134,312)
------ ------------
TOTAL NET ASSETS 100.00% $386,403,804
====== ============
+ NON-INCOME EARNING SECURITIES.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.51%
N/A WELLS FARGO LARGE CAP APPRECIATION PORTFOLIO $23,119,595
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $20,460,786) 23,119,595
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST $20,460,786) 100.51% $23,119,595
OTHER ASSETS AND LIABILITIES, NET (0.51) (116,174)
------ -----------
TOTAL NET ASSETS 100.00% $23,003,421
====== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
73
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 97.47%
N/A WELLS FARGO LARGE CAP VALUE PORTFOLIO $2,019,064
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $1,942,890) 2,019,064
----------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,942,890) 97.47% $2,019,064
OTHER ASSETS AND LIABILITIES, NET 2.53 52,430
------ ----------
TOTAL NET ASSETS 100.00% $2,071,494
====== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
74
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.04%
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO $2,832,121,215
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $2,623,752,775) 2,832,121,215
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,623,752,775) 100.04% $2,832,121,215
OTHER ASSETS AND LIABILITIES, NET (0.04) (1,270,104)
------ --------------
TOTAL NET ASSETS 100.00% $2,830,851,111
====== ==============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
75
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 78.76%
BRAZIL - 13.04%
98,800 CIA VALE DO RIO DOCE ADR (METAL MINING) $ 4,628,780
457,700 COMPANHIA ENERGETICA DE MINAS GERAIS ADR (ELECTRIC,
GAS & SANITARY SERVICES) 7,986,865
156,852,894 COMPANHIA SIDERURGICA NACIONAL SA (PRIMARY METAL
INDUSTRIES) 10,613,802
272,729 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR
(DEPOSITORY INSTITUTIONS) 6,673,679
29,903,126
-----------
HONG KONG - 3.43%
936,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 7,868,979
-----------
INDIA - 4.91%
325,450 INDIAN PETROCHEMICALS CORPORATION LIMITED (PETROLEUM
REFINING & RELATED INDUSTRIES) 1,364,162
253,600 STATE BANK OF INDIA (DEPOSITORY INSTITUTIONS) 9,890,400
11,254,562
-----------
INDONESIA - 3.95%
620,500 INTERNATIONAL NICKEL INDONESIA (METAL MINING) 3,260,641
86,330,000 PT BUMI RESOURCES TBK (COAL MINING) 5,796,666
9,057,307
-----------
MEXICO - 16.78%
179,600 AMERICA MOVIL SA DE CV ADR SERIES L (COMMUNICATIONS) 6,941,540
370,478 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE
PRODUCTS) 11,047,654
1,779,872 GRUPO MEXICO SA SERIES B (METAL MINING)+ 6,435,903
193,500 TELEFONOS DE MEXICO SA DE CV ADR SERIES L
(COMMUNICATIONS) 6,755,085
2,385,500 WAL-MART DE MEXICO SA DE CV SERIES V
(CONSUMER SERVICES) 7,282,502
38,462,684
-----------
MORROCO AND ANTILLES - 0.00%
2 BANQUE MAROCAINE COMMERCE GDR (DEPOSITORY
INSTITUTIONS)++ 31
-----------
POLAND - 3.00%
828,200 KGHM POLSKA MIEDZ SA (METAL MINING)+ 6,881,390
-----------
RUSSIA - 7.97%
135,200 JSC MMC NORILSK NICKEL ADR (PRIMARY METAL
INDUSTRIES) 10,207,600
133,700 YUKOS ADR (OIL & GAS EXTRACTION) 8,075,480
18,283,080
-----------
SOUTH KOREA - 9.68%
24,840 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC &
OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 12,393,458
30,020 SK TELECOM COMPANY LIMITED (COMMUNICATIONS) 5,616,721
196,700 SK TELECOM COMPANY LIMITED ADR (COMMUNICATIONS) 4,189,710
22,199,889
-----------
76
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY EMERGING MARKETS FOCUS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TAIWAN - 9.76%
3,894,000 SYNNEX TECHNOLOGY INTERNATIONAL CORPORATION (MOTOR
FREIGHT TRANSPORTATION & WAREHOUSING) $ 7,563,460
5,301,578 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
(SEMICONDUCTORS)+ 9,653,860
5,754,000 UNITED MICROELECTRONICS CORPORATION
(SEMICONDUCTORS)+ 5,168,995
22,386,315
------------
THAILAND - 2.94%
1,455,000 BANGKOK BANK PUBLIC COMPANY LIMITED
(FOREIGN REGISTERED) (FINANCIAL SERVICES)+ 3,499,555
2,565,000 KASIKORNBANK PUBLIC COMPANY LIMITED
(DEPOSITORY INSTITUTIONS)+ 3,231,547
6,731,102
------------
USA - 3.30%
262,700 UTSTARCOM INCORPORATED (COMMUNICATIONS)+ 7,555,252
------------
TOTAL COMMON STOCK (COST $156,200,172) 180,583,717
------------
PREFERRED STOCKS - 6.98%
17,409,000 CAEMI MINERACAO E METALURGICA SA PREFERRED+ 8,122,209
4,193,200 SADIA SA PREFERRED+ 5,984,121
2,000 TRANSNEFT PREFERRED 1,896,000
TOTAL PREFERRED STOCKS (COST $11,860,585) 16,002,330
------------
COLLATERAL FOR SECURITIES LENDING - 3.02%
COLLATERAL FOR SECURITY LENDING 6,923,382
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $6,923,382) 6,923,382
SHORT-TERM INVESTMENTS - 11.91%
MUTUAL FUND - 11.91%
27,307,922 WELLS FARGO MONEY MARKET TRUST~ 27,307,922
------------
TOTAL SHORT-TERM INVESTMENTS (COST $27,307,922) 27,307,922
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $202,292,061)* 100.67% $230,817,351
OTHER ASSETS AND LIABILITIES, NET (0.67) (1,534,025)
------ ------------
TOTAL NET ASSETS 100.00% $229,283,326
====== ============
+ NON-INCOME EARNING SECURITIES.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
77
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 94.24%
ARGENTINA - 1.11%
75,400 GRUPO FINANCIERO GALICIA SA ADR (FINANCIAL SERVICES)+ $ 640,900
95,221 SIDERAR SAIC CLASS A (PRIMARY METAL INDUSTRIES) 525,530
1,166,430
-----------
BRAZIL - 13.87%
29,400 CIA VALE DO RIO DOCE ADR (METAL MINING) 1,377,390
30,700 COMPANHIA ENERGETICA DE MINAS GERAIS ADR (ELECTRIC,
GAS & SANITARY SERVICES) 535,715
49,036,200 COMPANHIA SIDERURGICA NACIONAL SA (PRIMARY METAL
INDUSTRIES) 3,318,144
23,600 COMPANHIA VALE DO RIO DOCE PREFERREDA (METAL MINING) 1,098,716
235,700 KABLIN SA (TEXTILE MILL PRODUCTS) 338,794
123,097 PETROLEO BRASILEIRO SA (OIL & GAS EXTRACTION)+ 4,087,749
44,000 PETROLEO BRASILEIRO SA (OIL & GAS EXTRACTION) 1,474,000
30,500 PETROLEO BRASILEIRO SA ADR (COAL MINING) 900,970
42,300 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR
(DEPOSITORY INSTITUTIONS) 1,035,081
33,000 USINAS SIDERURIGAS DE MINAS GERAIS SA (PRIMARY
METAL INDUSTRIES) 440,943
14,607,502
-----------
CHILE - 1.22%
37,000 BANCO SANTANDER CHILE SA (DEPOSITORY INSTITUTIONS) 995,300
14,023 COMPANIA MANUFACTURERA DE PAPELES Y CARTONES SA CMPC
(PAPER & ALLIED PRODUCTS) 287,575
1,282,875
-----------
CHINA - 2.60%
1,503,000 ALUMINIUM CORPORATION OF CHINA LIMITED
(PRIMARY METAL INDUSTRIES) 1,224,994
2,669,000 CHINA TELECOM CORPORATION LIMITED (COMMUNICATIONS) 942,069
4,753 SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION
ADR (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 71,770
453,000 YANZHOU COAL MINING COMPANY LIMITED (RUBBER &
MISCELLANEOUS PLASTICS PRODUCTS) 502,939
2,741,772
-----------
CZECH REPUBLIC - 0.52%
4,600 KOMERCNI BANKA (FINANCIAL SERVICES) 550,629
-----------
GREECE - 1.04%
70,000 COSMOTE MOBILE COMMUNICATIONS SA (COMMUNICATIONS) 1,092,486
-----------
HONG KONG - 1.63%
73,000 CHEUNG KONG HOLDINGS LIMITED (REAL ESTATE) 613,713
372,000 CHINA MOBILE (HONG KONG) LIMITED (COMMUNICATIONS) 1,102,951
1,716,664
-----------
HUNGARY - 1.75%
124,400 MAGYAR TAVKOZLESI RT (COMMUNICATIONS) 572,679
16,000 MOL MAGYAR OLAJ-ES GAZIPARI RT (OIL & GAS EXTRACTION) 563,488
37,500 OTP BANK RIGHTS (FINANCIAL SERVICES)+ 711,089
1,847,256
-----------
78
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDIA - 5.91%
28,000 GAIL INDIA LIMITED (GAS DISTRIBUTION) $ 137,420
16,100 HDFC BANK LIMITED ADR (DEPOSITORY INSTITUTIONS) 484,288
9,200 HINDALCO INDUSTRIES LIMITED REG S GDR (PRIMARY METAL
INDUSTRIES)++ 257,894
73,850 INDIAN PETROCHEMICALS CORPORATION LIMITED (PETROLEUM
REFINING & RELATED INDUSTRIES) 309,551
9,300 INFOSYS TECHNOLOGIES LIMITED (APPAREL & OTHER FINISHED
PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS)+ 1,057,688
19,500 RELIANCE INDUSTRIES LIMITED (CHEMICALS & ALLIED
PRODUCTS)++ 559,065
37,500 RELIANCE INDUSTRIES LIMITED (CHEMICALS & ALLIED
PRODUCTS) 464,691
75,700 STATE BANK OF INDIA (DEPOSITORY INSTITUTIONS) 2,952,300
6,222,897
----------
INDONESIA - 2.82%
66,000 INTERNATIONAL NICKEL INDONESIA (METAL MINING) 346,821
995,000 PT ASTRA INTERNATIONAL INCORPORATED (COAL MINING) 621,621
6,855,000 PT BUMI RESOURCES TBK (COAL MINING) 460,282
1,283,000 PT TELEKOMUNIKASI INDONESIA (TOBACCO PRODUCTS) 1,048,753
3,060,000 PT UNITED TRACTORS TBK (STONE, CLAY, GLASS & CONCRETE
PRODUCTS)+ 491,330
2,968,807
----------
ISRAEL - 0.71%
210,300 BANK HAPOALIM LIMITED (FINANCIAL SERVICES) 550,730
104,300 BANK LEUMI LE-ISRAEL (DEPOSITORY INSTITUTIONS)+ 192,235
742,965
----------
MALAYSIA - 2.66%
930,300 AMMB HOLDINGS BERHAD (DEPOSITORY INSTITUTIONS) 989,056
385,800 COMMERCE ASSET-HOLDING BERHAD (FINANCIAL SERVICES) 527,937
151,800 MALAYAN BANKING BERHAD (DEPOSITORY INSTITUTIONS) 463,389
881,343 PUBLIC BANK BERHAD (DEPOSITORY INSTITUTIONS) 816,402
2,796,784
----------
MEXICO - 9.03%
269,000 ALFA SA (WHOLESALE TRADE NON-DURABLE GOODS) 1,023,260
35,600 AMERICA MOVIL SA DE CV ADR SERIES L (COMMUNICATIONS) 1,375,940
74,936 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,234,591
67,800 CORPORACION GEO SA DE CV SERIES B (WHOLESALE TRADE
NON-DURABLE GOODS)+ 454,023
497,777 GRUPO MEXICO SA SERIES B (METAL MINING)+ 1,799,930
34,500 TELEFONOS DE MEXICO SA DE CV ADR SERIES L
(COMMUNICATIONS) 1,204,395
465,200 WAL-MART DE MEXICO SA DE CV SERIES V (CONSUMER
SERVICES) 1,420,172
9,512,311
----------
MORROCO AND ANTILLES - 0.00%
2 BANQUE MAROCAINE COMMERCE GDR (DEPOSITORY
INSTITUTIONS)++ 31
----------
PERU - 1.00%
36,500 CIA DE MINAS BUENAVENTUR ADR (PRIMARY METAL INDUSTRIES) 1,054,850
----------
PILIPPINES - 0.51%
31,700 PHILIPPINE LONG DISTANCE TELEPHONE COMPANY ADR
(COMMUNICATIONS) 542,070
----------
POLAND - 1.04%
131,400 KGHM POLSKA MIEDZ SA (METAL MINING)+ 1,091,783
----------
79
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RUSSIA - 4.15%
8,500 AO VIMPELCOM ADR (COMMUNICATIONS)+ $ 883,915
14,500 MMC NORILSK NICKEL ADR (PRIMARY METAL INDUSTRIES) 1,094,750
4,500 LUKOIL ADR (OIL & GAS EXTRACTION)+ 558,900
9,300 MOBILE TELESYSTEMS ADR (COMMUNICATIONS)+ 1,222,950
10,200 YUKOS ADR (OIL & GAS EXTRACTION) 616,080
4,376,595
-----------
SOUTH AFRICA - 8.07%
362,800 ABSA GROUP LIMITED (DEPOSITORY INSTITUTIONS) 2,684,806
84,447 ANGLO AMERICAN PLC (METAL MINING) 2,023,244
34,400 EDGARS CONSOLIDATED STORES LIMITED (GENERAL
MERCHANDISE STORES) 775,549
107,800 MTN GROUP LIMITED (COMMUNICATIONS)+ 563,759
198,500 STANDARD BANK GROUP LIMITED (DEPOSITORY INSTITUTIONS) 1,322,808
415,400 STEINHOFF INTERNATIONAL HOLDINGS LIMITED (CONSTRUCTION
SPECIAL TRADE CONTRACTORS) 527,283
48,400 TELKOM SOUTH AFRICA LIMITED (COMMUNICATIONS) 605,144
8,502,593
-----------
SOUTH KOREA - 14.34%
50,440 HYUNDAI MOTOR COMPANY LIMITED (TRANSPORTATION
EQUIPMENT) 2,305,426
25,600 KOOKMIN BANK (FINANCIAL SERVICES)+ 1,038,336
18,900 KOREAN AIR LINES COMPANY LIMITED (TRANSPORTATION BY
AIR)+ 290,972
20,200 KT CORPORATION (COMMUNICATIONS) 744,429
10,735 POSCO (PRIMARY METAL INDUSTRIES) 1,516,918
12,080 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC &
OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 6,027,092
105,240 SHINHAN FIN GROUP COMPANY LIMITED (FINANCIAL SERVICES) 1,936,904
6,680 SK TELECOM COMPANY LIMITED (COMMUNICATIONS) 1,249,823
15,109,900
-----------
TAIWAN - 13.34%
363,375 ASUSTEK COMPUTER (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ 871,218
323,400 AU OPTRONICS CORPORATION (ELECTRIC, GAS & SANITARY
SERVICES)+ 623,244
483,400 CHINA TRUST FINANCIAL HOLDING COMPANY LIMITED
(FINANCIAL SERVICES)+ 579,493
1,495,240 COMPAL ELECTRONIC INCORPORATED (APPAREL & ACCESSORY
STORES) 1,883,231
301,000 FORMOSA PLASTICS CORPORATION (REAL ESTATE) 479,590
884,120 NAN YA PLASTICS CORPORATION (CHEMICALS & ALLIED
PRODUCTS) 1,247,696
203,060 QUANTA COMPUTER INCORPORATED (APPAREL & ACCESSORY
STORES) 474,526
643,000 SILICONWARE PRECISION INDUSTRIES COMPANY
(SEMICONDUCTORS)+ 647,879
871,000 SYNNEX TECHNOLOGY INTERNATIONAL CORPORATION (MOTOR
FREIGHT TRANSPORTATION & WAREHOUSING) 1,691,776
1,596,241 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
(SEMICONDUCTORS)+ 2,906,660
2,026,388 UNITED MICROELECTRONICS CORPORATION (SEMICONDUCTORS)+ 1,820,367
869,000 WAN HAI LINES LIMITED (RAILROAD TRANSPORTATION) 828,121
14,053,801
-----------
THAILAND - 3.60%
384,300 ADVANCED INFORMATION SERVICE PUBLIC COMPANY LIMITED
(FOREIGN REGISTERED) (COMMUNICATIONS) 816,723
290,900 BANGKOK BANK PUBLIC COMPANY LIMITED (FOREIGN
REGISTERED) (FINANCIAL SERVICES)+ 699,671
84,500 BANPU PUBLIC COMPANY LIMITED (METAL MINING) 277,437
80
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
THAILAND (continued)
899,000 BEC WORLD PUBLIC COMPANY LIMITED FOREIGN (GENERAL
MERCHANDISE STORES) $ 423,301
1,038,400 KASIKORNBANK PUBLIC COMPANY LIMITED (DEPOSITORY
INSTITUTIONS)+ 1,308,241
251,800 KIATNAKIN FINANCE (DEPOSITORY INSTITUTIONS) 262,759
3,788,132
------------
TURKEY - 0.84%
35,645,000 FORD OTOMOTIV SANAYI AS (TRANSPORTATION BY AIR)+ 298,398
35,645,000 TUPRAS-TURKIYE PETROL RAFINERILERI AS (ENERGY) 301,111
79,980,000 TURKIYE GARANTI BANKASI AS (DEPOSITORY
INSTITUTIONS)+ 287,599
887,108
------------
UNITED KINGDOM - 0.42%
23,500 ANTOFAGASTA PLC (MINING & QUARRYING OF NONMETALLIC
MINERALS, EXCEPT FUELS) 447,014
------------
USA - 1.60%
58,500 UTSTARCOM INCORPORATED (COMMUNICATIONS)+ 1,682,460
------------
VENEZUELA - 0.46%
24,900 CIA ANONIMA TELEFONOS DE VENEZUELA ADR
(TRANSPORTATION BY AIR) 487,791
------------
TOTAL COMMON STOCK (COST $71,856,019) 99,273,506
------------
COLLATERAL FOR SECURITIES LENDING - 30.62%
COLLATERAL FOR SECURITY LENDING 32,253,373
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $32,253,373) 32,253,373
------------
SHARES VALUE
PREFERRED STOCKS - 1.30%
1,025,500 CAEMI MINERACAO E METALURGICA SA PREFERRED+ 478,449
310,100 SADIA SA PREFERRED+ 442,544
471 TRANSNEFT PREFERRED 446,508
TOTAL PREFERRED STOCKS (COST $1,021,700) 1,367,501
------------
SHORT-TERM INVESTMENTS - 3.53%
MUTUAL FUND - 3.53%
3,722,699 WELLS FARGO MONEY MARKET TRUST~ 3,722,699
------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,722,699) 3,722,699
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $108,853,791)* 129.69% $136,617,079
OTHER ASSETS AND LIABILITIES, NET (29.69) (31,274,412)
------ ------------
TOTAL NET ASSETS 100.00% $105,342,667
====== ============
+ NON-INCOME EARNING SECURITIES.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
81
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 97.62%
AMUSEMENT & RECREATION SERVICES - 2.86%
39,300 INTERNATIONAL GAME TECHNOLOGY $ 1,766,928
51,500 MULTIMEDIA GAMES INCORPORATED+ 1,274,110
3,041,038
-----------
APPAREL & ACCESSORY STORES - 1.00%
22,845 CHICO'S FAS INCORPORATED+ 1,060,008
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS
- 1.11%
21,800 LENNAR CORPORATION CLASS A 1,177,854
-----------
BUSINESS SERVICES - 25.35%
111,400 ALLIANCE DATA SYSTEMS CORPORATION+ 3,737,470
35,600 AMDOCS LIMITED+ 989,324
72,400 ASCENTIAL SOFTWARE CORPORATION+ 1,587,008
51,300 ASK JEEVES INCORPORATED+ 1,832,949
38,700 CHECKFREE CORPORATION+ 1,140,102
123,300 CNET NETWORKS INCORPORATED+ 1,273,689
74,100 DIGITAL INSIGHT CORPORATION+ 1,535,352
38,125 GTECH HOLDINGS CORPORATION 2,254,712
29,800 HYPERION SOLUTIONS CORPORATION+ 1,235,210
26,400 LAMAR ADVERTISING COMPANY+ 1,061,808
26,795 MANHATTAN ASSOCIATES INCORPORATED+ 744,901
27,000 MANPOWER INCORPORATED 1,255,500
40,000 MONSTER WORLDWIDE INCORPORATED+ 1,048,000
16,000 PIXAR+ 1,031,360
34,059 SAFENET INCORPORATED+ 1,278,575
161,100 UNITED ONLINE INCORPORATED+ 2,683,926
46,900 YAHOO! INCORPORATED+ 2,278,871
26,968,757
-----------
CHEMICALS & ALLIED PRODUCTS - 8.79%
98,132 ANDRX CORPORATION+ 2,669,191
19,100 GENZYME CORPORATION+ 898,464
42,300 MEDICINES COMPANY+ 1,362,483
29,900 NEUROCRINE BIOSCIENCES INCORPORATED+ 1,767,090
46,569 PHARMACEUTICAL RESOURCES INCORPORATED+ 2,647,913
9,345,141
-----------
COMMUNICATIONS - 13.04%
60,200 ADTRAN INCORPORATED 1,807,806
109,500 AMERICAN TOWER CORPORATION CLASS A+ 1,242,825
76,300 FOUNDRY NETWORKS INCORPORATED+ 1,310,071
122,800 NEXTEL PARTNERS INCORPORATED CLASS A+ 1,554,648
69,627 NII HOLDINGS INCORPORATED CLASS B+ 2,439,034
17,000 NTL INCORPORATED+ 1,010,650
72,200 RADIO ONE INCORPORATED CLASS D+ 1,335,700
57,800 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+ 1,907,978
45,000 XM SATELLITE RADIO HOLDINGS INCORPORATED+ 1,260,000
13,868,712
-----------
82
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS - 0.82%
14,500 CITY NATIONAL CORPORATION $ 868,550
----------
EDUCATIONAL SERVICES - 4.54%
21,500 APOLLO GROUP INCORPORATED CLASS A+ 1,851,365
90,000 CORINTHIAN COLLEGES INCORPORATED+ 2,975,400
4,826,765
----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 6.58%
21,903 ANALOG DEVICES INCORPORATED 1,051,563
70,027 INTEGRATED CIRCUIT SYSTEMS INCORPORATED+ 1,752,776
69,200 INTERSIL CORPORATION CLASS A 1,542,468
24,432 LINEAR TECHNOLOGY CORPORATION 904,473
23,900 QLOGIC CORPORATION+ 788,939
22,782 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 956,844
6,997,063
----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 0.37%
8,500 CORPORATE EXECUTIVE BOARD COMPANY 399,500
----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 2.53%
30,000 CRANE COMPANY 990,000
56,000 MASCO CORPORATION 1,704,080
2,694,080
----------
FURNITURE & FIXTURES - 0.77%
30,800 HERMAN MILLER INCORPORATED 820,204
----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.01%
25,685 BED BATH & BEYOND INCORPORATED+ 1,072,606
----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.54%
15,500 MANDALAY RESORT GROUP 887,530
41,108 STATION CASINOS INCORPORATED 1,815,740
2,703,270
----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 0.69%
18,800 ACTUANT CORPORATION CLASS A+ 737,524
----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 3.01%
100,100 PERKINELMER INCORPORATED 2,071,069
40,000 THERMO ELECTRON CORPORATION+ 1,131,200
3,202,269
----------
MISCELLANEOUS RETAIL - 2.81%
156,051 MARVEL ENTERPRISES INCORPORATED+ 2,994,619
----------
MOTION PICTURES - 1.69%
82,000 REGAL ENTERTAINMENT GROUP CLASS A 1,802,360
----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.06%
40,000 HUNT (J.B.) TRANSPORT SERVICES INCORPORATED+ 1,126,800
----------
83
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 3.49%
50,000 CAPITALSOURCE INCORPORATED+ $ 1,122,500
26,966 COUNTRYWIDE FINANCIAL CORPORATION 2,586,039
3,708,539
------------
OIL & GAS EXTRACTION - 1.19%
50,000 XTO ENERGY INCORPORATED 1,262,000
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.07%
18,000 MURPHY OIL CORPORATION 1,133,460
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.79%
18,876 EW SCRIPPS COMPANY CLASS A 1,908,552
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 5.49%
14,000 CHICAGO MERCANTILE EXCHANGE 1,354,360
127,000 E*TRADE FINANCIAL CORPORATION+ 1,695,450
182,200 INSTINET GROUP INCORPORATED+ 1,284,510
18,175 LEHMAN BROTHERS HOLDINGS INCORPORATED 1,506,162
5,840,482
------------
TRANSPORTATION EQUIPMENT - 0.95%
24,834 BRUNSWICK CORPORATION 1,013,972
------------
TRANSPORTATION SERVICES - 1.95%
50,000 CH ROBINSON WORLDWIDE INCORPORATED 2,075,000
------------
WHOLESALE TRADE-DURABLE GOODS - 1.12%
24,805 WW GRAINGER INCORPORATED 1,190,640
------------
TOTAL COMMON STOCK (COST $88,122,419) 103,839,765
------------
COLLATERAL FOR SECURITIES LENDING - 42.40%
COLLATERAL FOR SECURITY LENDING 45,094,995
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $45,094,995) 45,094,995
------------
SHORT-TERM INVESTMENTS - 2.23%
MUTUAL FUND - 2.23%
2,375,339 WELLS FARGO MONEY MARKET TRUST~ 2,375,339
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,375,339) 2,375,339
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $135,592,753)* 142.25% $151,310,099
OTHER ASSETS AND LIABILITIES, NET (42.25) (44,942,788)
------ ------------
TOTAL NET ASSETS 100.00% $106,367,311
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
84
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY SMALL CAP FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.27%
AMUSEMENT & RECREATION SERVICES - 1.97%
51,100 MULTIMEDIA GAMES INCORPORATED+ $1,264,214
27,400 WMS INDUSTRIES INCORPORATED+ 849,400
2,113,614
-----------
APPAREL & ACCESSORY STORES - 0.74%
37,700 TOO INCORPORATED+ 789,815
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.01%
59,900 CSK AUTO CORPORATION+ 1,084,789
-----------
BUSINESS SERVICES - 29.85%
30,259 ACTIVISION INCORPORATED+ 478,697
81,400 ADMINISTAFF INCORPORATED+ 1,418,802
45,200 AKAMAI TECHNOLOGIES INCORPORATED+ 593,928
110,632 ALLIANCE DATA SYSTEMS CORPORATION+ 3,711,703
25,100 ANTEON INTERNATIONAL CORPORATION+ 725,139
110,000 AQUANTIVE INCORPORATED+ 1,056,000
26,542 ARBITRON INCORPORATED+ 1,068,581
61,500 ASCENTIAL SOFTWARE CORPORATION+ 1,348,080
51,700 ASK JEEVES INCORPORATED+ 1,847,241
77,641 AUTOBYTEL INCORPORATED+ 1,024,861
115,700 CHORDIANT SOFTWARE INCORPORATED+ 606,268
124,193 CNET NETWORKS INCORPORATED+ 1,282,914
73,500 DIGITAL INSIGHT CORPORATION+ 1,522,920
37,036 GTECH HOLDINGS CORPORATION 2,190,309
29,400 HYPERION SOLUTIONS CORPORATION+ 1,218,630
114,500 IVILLAGE INCORPORATED+ 787,760
35,300 MANHATTAN ASSOCIATES INCORPORATED+ 981,340
38,100 OPEN SOLUTIONS INCORPORATED+ 841,248
62,816 QUEST SOFTWARE INCORPORATED+ 1,027,042
33,615 SAFENET INCORPORATED+ 1,261,907
117,000 SUPPORTSOFT INCORPORATED+ 1,288,170
110,400 TIBCO SOFTWARE INCORPORATED+ 901,968
27,494 TNS INCORPORATED+ 526,510
68,440 TRANSACTION SYSTEMS ARCHITECTS INCORPORATED CLASS A+ 1,583,702
160,900 UNITED ONLINE INCORPORATED+ 2,680,594
31,974,314
-----------
CHEMICALS & ALLIED PRODUCTS - 12.19%
97,500 ANDRX CORPORATION+ 2,652,000
42,500 ANGIOTECH PHARMACEUTICALS INCORPORATED+ 1,037,425
49,100 DENDREON CORPORATION+ 653,030
78,235 INSPIRE PHARMACEUTICALS INCORPORATED+ 1,007,667
41,900 MEDICINES COMPANY+ 1,349,599
30,800 NEKTAR THERAPEUTICS+ 664,664
28,600 NEUROCRINE BIOSCIENCES INCORPORATED+ 1,690,260
31,700 NPS PHARMACEUTICALS INCORPORATED+ 905,035
85
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY SMALL CAP FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
45,727 PHARMACEUTICAL RESOURCES INCORPORATED+ $ 2,600,037
21,967 VICURON PHARMACEUTICALS INCORPORATED+ 499,749
13,059,466
-----------
COMMUNICATIONS - 6.83%
67,870 CUMULUS MEDIA INCORPORATED CLASS A+ 1,356,721
8,100 GLOBAL PAYMENTS INCORPORATED 365,148
100,062 NEXTEL PARTNERS INCORPORATED CLASS A+ 1,266,785
68,820 NII HOLDINGS INCORPORATED CLASS B+ 2,410,765
103,800 RADIO ONE INCORPORATED CLASS D+ 1,920,300
7,319,719
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.61%
24,800 DYCOM INDUSTRIES INCORPORATED+ 657,696
-----------
DEPOSITORY INSTITUTIONS - 0.37%
40,800 OCWEN FINANCIAL CORPORATION+ 394,536
-----------
EDUCATIONAL SERVICES - 3.68%
55,600 CORINTHIAN COLLEGES INCORPORATED+ 1,838,136
27,400 LEARNING TREE INTERNATIONAL INCORPORATED+ 435,386
47,600 SYLVAN LEARNING SYSTEMS INCORPORATED+ 1,671,236
3,944,758
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 7.44%
75,268 ARTISAN COMPONENTS INCORPORATED+ 1,677,724
98,200 CONEXANT SYSTEMS INCORPORATED+ 604,912
84,000 GRAFTECH INTERNATIONAL LIMITED+ 1,255,800
48,343 INTEGRATED CIRCUIT SYSTEMS INCORPORATED+ 1,210,025
95,492 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 1,432,380
43,400 NMS COMMUNICATIONS CORPORATION+ 310,744
41,500 UNIVERSAL DISPLAY CORPORATION+ 532,445
22,521 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 945,882
7,969,912
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 6.37%
4,791 CDI CORPORATION 154,653
10,300 CORPORATE EXECUTIVE BOARD COMPANY 484,100
116,643 KROLL INCORPORATED+ 3,131,865
27,007 LECG CORPORATION+ 525,286
67,417 NAVIGANT CONSULTING INCORPORATED+ 1,363,846
26,436 RESOURCES CONNECTION INCORPORATED+ 1,166,330
6,826,080
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.91%
29,600 CRANE COMPANY 976,800
-----------
FURNITURE & FIXTURES - 0.77%
31,100 HERMAN MILLER INCORPORATED 828,193
-----------
86
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY SMALL CAP FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 2.01%
36,000 COVANCE INCORPORATED+ $ 1,239,840
54,500 SELECT MEDICAL CORPORATION 910,150
2,149,990
-----------
HOLDING & OTHER INVESTMENT OFFICES - 0.71%
13,950 AFFILIATED MANAGERS GROUP INCORPORATED+ 761,391
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.05%
18,700 BOYD GAMING CORPORATION 428,043
40,100 STATION CASINOS INCORPORATED 1,771,217
2,199,260
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.42%
18,600 ACTUANT CORPORATION CLASS A+ 729,678
29,200 GARDNER DENVER INCORPORATED+ 790,736
1,520,414
-----------
INSURANCE CARRIERS - 1.66%
34,984 CENTENE CORPORATION+ 1,070,160
29,378 SCOTTISH RE GROUP LIMITED 710,654
1,780,814
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.92%
99,500 PERKINELMER INCORPORATED 2,058,655
-----------
MISCELLANEOUS RETAIL - 2.76%
153,921 MARVEL ENTERPRISES INCORPORATED+ 2,953,744
-----------
MOTION PICTURES - 0.79%
45,100 MACROVISION CORPORATION+ 842,468
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.56%
69,359 SIRVA INCORPORATED+ 1,672,939
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.91%
22,200 WESTCORP INCORPORATED 978,354
-----------
OIL & GAS EXTRACTION - 0.79%
32,166 PATINA OIL & GAS CORPORATION 844,358
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.62%
28,200 HARTE-HANKS INCORPORATED 660,444
-----------
RAILROAD TRANSPORTATION - 0.88%
38,100 GENESEE & WYOMING INCORPORATED+ 941,070
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES
& SERVICES - 3.08%
100,800 INSTINET GROUP INCORPORATED+ 710,640
37,500 JEFFERIES GROUP INCORPORATED 1,324,875
99,900 KNIGHT TRADING GROUP INCORPORATED+ 1,264,734
3,300,249
-----------
87
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY SMALL CAP FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION SERVICES - 1.16%
56,340 PACER INTERNATIONAL INCORPORATED+ $ 1,241,734
------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.46%
23,100 PRIORITY HEALTHCARE CORPORATION CLASS B+ 491,799
------------
WHOLESALE TRADE-DURABLE GOODS - 2.75%
29,299 HUGHES SUPPLY INCORPORATED 1,535,268
47,600 INSIGHT ENTERPRISES INCORPORATED+ 916,300
43,700 PSS WORLD MEDICAL INCORPORATED+ 489,003
2,940,571
------------
TOTAL COMMON STOCK (COST $91,343,835) 105,277,946
------------
WARRANTS - 0.00%
2,851 TIMCO AVIATION SERVICES INCORPORATED+ 0
TOTAL WARRANTS (COST $0) 0
------------
COLLATERAL FOR SECURITIES LENDING - 29.03%
COLLATERAL FOR SECURITY LENDING 31,098,494
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $31,098,494) 31,098,494
------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CORPORATE BONDS & NOTES - 0.00%
WHOLESALE TRADE-DURABLE GOODS - 0.00%
2,749 TIMCO AVIATION SERVICES
INCORPORATED &(A) 8.00% 01/02/2007 137
---
TOTAL CORPORATE BONDS & NOTES (COST $0) 137
---
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 2.19%
MUTUAL FUND - 2.19%
2,344,387 WELLS FARGO MONEY MARKET TRUST~ 2,344,387
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,344,387) 2,344,387
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $124,786,716)* 129.49% $138,720,964
OTHER ASSETS AND LIABILITIES, NET (29.49) (31,590,086)
------ ------------
TOTAL NET ASSETS 100.00% $107,130,878
====== ============
+ NON-INCOME EARNING SECURITIES.
& PAYMENT-IN-KIND (PIK) SECURITIES ARE SECURITIES IN WHICH THE ISSUER MAY
MAKE INTEREST OR DIVIDEND PAYMENTS IN CASH OR ADDITIONAL SECURITIES. THESE
ADDITIONAL SECURITIES GENERALLY HAVE THE SAME TERMS AS THE ORIGINAL
HOLDINGS.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
88
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004(UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SIFE SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.82%
DEPOSITORY INSTITUTIONS - 64.93%
23,506 AMERICAN RIVER HOLDINGS $ 487,985
346,600 BANK OF AMERICA CORPORATION 28,067,668
288,550 BANK OF THE OZARKS INCORPORATED 7,949,552
200,000 BANK ONE CORPORATION 10,904,000
215,000 BANKNORTH GROUP INCORPORATED 7,318,600
36,000 CAPITAL CORP OF THE WEST 1,408,680
660,900 CITIGROUP INCORPORATED 34,168,530
125,000 CITY NATIONAL CORPORATION 7,487,500
125,000 COMPASS BANCSHARES INCORPORATED 5,183,750
296,142 CULLEN FROST BANKERS INCORPORATED 12,663,032
640,000 FLEETBOSTON FINANCIAL CORPORATION 28,736,000
100,000 GOLDEN WEST FINANCIAL CORPORATION 11,195,000
70,988 IBERIABANK CORPORATION 4,177,644
600,000 JP MORGAN CHASE & COMPANY 25,170,000
150,000 PEOPLES BANK 6,973,500
1,000,000 SOUTHTRUST CORPORATION 33,160,000
225,000 STATE STREET CORPORATION 11,729,250
249,500 SUMMIT BANCSHARES INCORPORATED 7,509,950
300,000 SUNTRUST BANKS INCORPORATED 20,913,000
100,000 TEXAS REGIONAL BANCSHARES INCORPORATED CLASS A 4,255,000
350,000 UNIONBANCAL CORPORATION 18,336,500
975,000 US BANCORP 26,958,750
600,000 WACHOVIA CORPORATION 28,200,000
135,000 WEBSTER FINANCIAL CORPORATION 6,845,850
200,085 ZIONS BANCORPORATION 11,444,862
361,244,603
------------
FINANCIAL SERVICES - 1.26%
230,800 INDEPENDENT BANK CORPORATION MASSACHUSETTS 6,995,548
------------
INSURANCE AGENTS, BROKERS & SERVICE - 2.39%
412,500 NATIONAL FINANCIAL PARTNERS CORPORATION 13,303,125
------------
INSURANCE CARRIERS - 8.62%
175,000 ALLSTATE CORPORATION 7,955,500
400,000 AMERICAN INTERNATIONAL GROUP INCORPORATED 28,540,000
125,000 ARCH CAPITAL GROUP LIMITED+ 5,253,750
171,000 DIRECT GENERAL CORPORATION 6,190,200
47,939,450
------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 9.57%
423,000 CAPITAL ONE FINANCIAL CORPORATION 31,906,890
773,250 MBNA CORPORATION 21,364,897
53,271,787
------------
89
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SIFE SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 10.05%
100,000 GOLDMAN SACHS GROUP INCORPORATED $ 10,435,000
390,000 MERRILL LYNCH & COMPANY INCORPORATED 23,228,400
380,000 MORGAN STANLEY 21,774,000
8,750 PIPER JAFFRAY COMPANIES INCORPORATED+ 473,813
55,911,213
------------
TOTAL COMMON STOCK (COST $448,688,610) 538,665,726
------------
COLLATERAL FOR SECURITIES LENDING - 6.11%
COLLATERAL FOR SECURITY LENDING 33,978,229
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $33,978,229) 33,978,229
------------
PRINCIPAL INTEREST RATE MATURITY DATE VALUE
REPURCHASE AGREEMENTS - 3.60%
$20,055,000 GOLDMAN SACHS &
COMPANY - 102%
COLLATERALIZED BY US
GOVERNMENT SECURITIES 0.99% 04/01/2004 20,055,000
TOTAL REPURCHASE AGREEMENTS a
(COST $20,055,000) 20,055,000
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $502,721,839)* 106.53% $592,698,955
OTHER ASSETS AND
LIABILITIES, NET (6.53) (36,326,419)
------ ------------
TOTAL NET ASSETS 100.00% $556,372,536
====== ============
+ NON-INCOME EARNING SECURITIES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
STRIKE PRICE/
CONTRACTS EXPIRATION DATE VALUE
WRITTEN OPTIONS
(2,000) BANK OF AMERICA CALL $ 85 05/22/2004 $ (120,000)
(1,000) GOLDMAN SACHS CALL 110 05/22/2004 (155,000)
(1,000) STATE STREET CALL 55 05/22/2004 (70,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED
$368,915) (345,000)
============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
90
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.09%
AMUSEMENT & RECREATION SERVICES - 1.98%
81,100 MULTIMEDIA GAMES INCORPORATED+ $ 2,006,414
41,700 WMS INDUSTRIES INCORPORATED+ 1,292,700
3,299,114
-----------
APPAREL & ACCESSORY STORES - 0.74%
58,800 TOO INCORPORATED+ 1,231,860
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.80%
73,531 CSK AUTO CORPORATION+ 1,331,646
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 0.00%
43 LEVITT CORPORATION FL CLASS A+ 1,054
-----------
BUSINESS SERVICES - 30.83%
47,184 ACTIVISION INCORPORATED+ 746,451
129,200 ADMINISTAFF INCORPORATED+ 2,251,956
73,100 AKAMAI TECHNOLOGIES INCORPORATED+ 960,534
179,600 ALLIANCE DATA SYSTEMS CORPORATION+ 6,025,580
40,500 ANTEON INTERNATIONAL CORPORATION+ 1,170,045
174,400 AQUANTIVE INCORPORATED+ 1,674,240
41,341 ARBITRON INCORPORATED+ 1,664,389
97,500 ASCENTIAL SOFTWARE CORPORATION+ 2,137,200
80,500 ASK JEEVES INCORPORATED+ 2,876,265
174,525 AUTOBYTEL INCORPORATED+ 2,303,730
182,300 CHORDIANT SOFTWARE INCORPORATED+ 955,252
193,408 CNET NETWORKS INCORPORATED+ 1,997,905
118,500 DIGITAL INSIGHT CORPORATION+ 2,455,320
58,356 GTECH HOLDINGS CORPORATION 3,451,174
46,700 HYPERION SOLUTIONS CORPORATION+ 1,935,715
180,200 IVILLAGE INCORPORATED+ 1,239,776
55,900 MANHATTAN ASSOCIATES INCORPORATED+ 1,554,020
60,400 OPEN SOLUTIONS INCORPORATED+ 1,333,632
100,517 QUEST SOFTWARE INCORPORATED+ 1,643,453
52,822 SAFENET INCORPORATED+ 1,982,938
185,400 SUPPORTSOFT INCORPORATED+ 2,041,254
173,200 TIBCO SOFTWARE INCORPORATED+ 1,415,044
43,030 TNS INCORPORATED+ 824,024
106,902 TRANSACTION SYSTEMS ARCHITECTS INCORPORATED CLASS A+ 2,473,712
252,750 UNITED ONLINE INCORPORATED+ 4,210,815
51,324,424
-----------
CHEMICALS & ALLIED PRODUCTS - 11.50%
151,924 ANDRX CORPORATION+ 4,132,333
66,800 ANGIOTECH PHARMACEUTICALS INCORPORATED+ 1,630,588
76,500 DENDREON CORPORATION+ 1,017,450
121,844 INSPIRE PHARMACEUTICALS INCORPORATED+ 1,569,350
66,400 MEDICINES COMPANY+ 2,138,744
48,000 NEKTAR THERAPEUTICS+ 1,035,840
91
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
45,200 NEUROCRINE BIOSCIENCES INCORPORATED+ $ 2,671,320
72,800 PHARMACEUTICAL RESOURCES INCORPORATED+ 4,139,408
35,833 VICURON PHARMACEUTICALS INCORPORATED+ 815,201
19,150,234
-----------
COMMUNICATIONS - 6.94%
107,911 CUMULUS MEDIA INCORPORATED CLASS A+ 2,157,141
12,800 GLOBAL PAYMENTS INCORPORATED 577,024
157,127 NEXTEL PARTNERS INCORPORATED CLASS A+ 1,989,228
109,140 NII HOLDINGS INCORPORATED CLASS B+ 3,823,174
162,700 RADIO ONE INCORPORATED CLASS D+ 3,009,950
11,556,517
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.62%
38,600 DYCOM INDUSTRIES INCORPORATED+ 1,023,672
-----------
DEPOSITORY INSTITUTIONS - 0.38%
64,900 OCWEN FINANCIAL CORPORATION+ 627,583
-----------
EDUCATIONAL SERVICES - 3.50%
44,000 CORINTHIAN COLLEGES INCORPORATED+ 1,454,640
48,000 LEARNING TREE INTERNATIONAL INCORPORATED+ 762,720
102,600 SYLVAN LEARNING SYSTEMS INCORPORATED+ 3,602,286
5,819,646
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 7.70%
129,373 ARTISAN COMPONENTS INCORPORATED+ 2,883,724
156,200 CONEXANT SYSTEMS INCORPORATED+ 962,192
132,500 GRAFTECH INTERNATIONAL LIMITED+ 1,980,875
78,172 INTEGRATED CIRCUIT SYSTEMS INCORPORATED+ 1,956,645
149,079 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 2,236,185
67,700 NMS COMMUNICATIONS CORPORATION+ 484,732
63,900 UNIVERSAL DISPLAY CORPORATION+ 819,837
35,711 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 1,499,862
12,824,052
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 6.45%
7,401 CDI CORPORATION 238,904
16,200 CORPORATE EXECUTIVE BOARD COMPANY 761,400
184,015 KROLL INCORPORATED+ 4,940,803
43,702 LECG CORPORATION+ 850,004
105,101 NAVIGANT CONSULTING INCORPORATED+ 2,126,193
41,207 RESOURCES CONNECTION INCORPORATED+ 1,818,012
10,735,316
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.92%
46,500 CRANE COMPANY 1,534,500
-----------
92
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FURNITURE & FIXTURES - 0.77%
48,400 HERMAN MILLER INCORPORATED $1,288,892
----------
HEALTH SERVICES - 2.02%
56,500 COVANCE INCORPORATED+ 1,945,860
85,200 SELECT MEDICAL CORPORATION 1,422,840
3,368,700
----------
HOLDING & OTHER INVESTMENT OFFICES - 0.72%
22,050 AFFILIATED MANAGERS GROUP INCORPORATED+ 1,203,489
----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.04%
29,600 BOYD GAMING CORPORATION 677,544
61,617 STATION CASINOS INCORPORATED 2,721,623
3,399,167
----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.41%
29,100 ACTUANT CORPORATION CLASS A+ 1,141,593
44,500 GARDNER DENVER INCORPORATED+ 1,205,060
2,346,653
----------
INSURANCE CARRIERS - 1.72%
55,513 CENTENE CORPORATION+ 1,698,142
48,367 SCOTTISH RE GROUP LIMITED 1,169,998
2,868,140
----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.01%
162,000 PERKINELMER INCORPORATED 3,351,780
----------
MISCELLANEOUS RETAIL - 2.81%
244,151 MARVEL ENTERPRISES INCORPORATED+ 4,685,248
----------
MOTION PICTURES - 0.80%
71,000 MACROVISION CORPORATION+ 1,326,280
----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.59%
109,398 SIRVA INCORPORATED+ 2,638,680
----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.97%
36,800 WESTCORP 1,621,776
----------
OIL & GAS EXTRACTION - 0.81%
51,200 PATINA OIL & GAS CORPORATION 1,344,000
----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.65%
45,900 HARTE-HANKS INCORPORATED 1,074,978
----------
RAILROAD TRANSPORTATION - 0.90%
60,500 GENESEE & WYOMING INCORPORATED+ 1,494,350
----------
93
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 3.15%
160,000 INSTINET GROUP INCORPORATED+ $ 1,128,000
58,500 JEFFERIES GROUP INCORPORATED 2,066,805
162,200 KNIGHT TRADING GROUP INCORPORATED+ 2,053,452
5,248,257
------------
TRANSPORTATION SERVICES - 1.12%
84,662 PACER INTERNATIONAL INCORPORATED+ 1,865,950
------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.46%
35,961 PRIORITY HEALTHCARE CORPORATION CLASS B+ 765,610
------------
WHOLESALE TRADE-DURABLE GOODS - 2.78%
45,925 HUGHES SUPPLY INCORPORATED 2,406,470
75,800 INSIGHT ENTERPRISES INCORPORATED+ 1,459,150
68,200 PSS WORLD MEDICAL INCORPORATED+ 763,158
4,628,778
------------
TOTAL COMMON STOCK (COST $143,867,206) 164,980,346
------------
COLLATERAL FOR SECURITIES LENDING - 30.98%
COLLATERAL FOR SECURITY LENDING 51,584,074
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $51,584,074) 51,584,074
------------
WARRANTS - 0.00%
108 IMPERIAL CREDIT INDUSTRY+(A) 0
------------
TOTAL WARRANTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS - 1.06%
MUTUAL FUND - 1.06%
1,754,234 WELLS FARGO MONEY MARKET TRUST~ 1,754,234
------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,754,234) 1,754,234
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $197,205,514)* 131.13% $218,318,654
OTHER ASSETS AND LIABILITIES, NET (31.13) (51,828,105)
------ ------------
TOTAL NET ASSETS 100.00% $166,490,549
====== ============
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
94
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 93.49%
AGRICULTURAL PRODUCTION CROPS - 1.17%
231,300 DELTA & PINE LAND COMPANY $ 5,770,935
-----------
APPAREL & ACCESSORY STORES - 1.94%
40,300 AEROPOSTALE INCORPORATED+ 1,461,278
210,200 STAGE STORES INCORPORATED+ 8,132,638
9,593,916
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.65%
78,945 ADVANCE AUTO PARTS INCORPORATED+ 3,210,693
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 0.18%
35,650 LEVITT CORPORATION FL CLASS A+ 873,425
-----------
BUSINESS SERVICES - 12.67%
333,200 ACXIOM CORPORATION 7,317,072
140,700 ADVO INCORPORATED 4,533,354
146,500 ARBITRON INCORPORATED+ 5,898,090
90,404 ASCENTIAL SOFTWARE CORPORATION+ 1,981,656
770,800 ATARI INCORPORATED+ 2,628,428
212,000 AUTODESK INCORPORATED 6,703,440
447,000 DOUBLECLICK INCORPORATED+ 5,028,750
430,300 ENTRUST INCORPORATED+ 1,880,411
10,300 FORRESTER RESEARCH INCORPORATED+ 195,185
43,754 INTRADO INCORPORATED+ 846,640
73,300 MAPINFO CORPORATION+ 935,308
765,200 NETWORK ASSOCIATES INCORPORATED+ 13,773,600
90,663 OVERLAND STORAGE INCORPORATED+ 1,536,738
14,542 PEREGRINE SYSTEMS INCORPORATED+ 321,378
224,600 SOTHEBY'S HOLDINGS INCORPORATED+ 2,886,110
189,200 UNIVERSAL COMPRESSION HOLDINGS INCORPORATED+ 6,224,680
62,690,840
-----------
CHEMICALS & ALLIED PRODUCTS - 8.12%
368,700 ABLE LABORATIES INCORPORATED+ 7,200,711
220,300 CONTINENTAL SOUTHERN RESOURCES INCORPORATED+(A)(B) 719,059
87,700 DENDREON CORPORATION+ 1,166,410
345,800 IMMUCOR INCORPORATED+ 6,265,896
28,546 MEDICIS PHARMACEUTICAL CORPORATION CLASS A 1,141,840
103,800 NABI BIOPHARMACEUTICALS+ 1,614,090
252,000 NBTY INCORPORATED+ 9,369,360
246,200 OLIN CORPORATION 4,394,670
293,000 PERRIGO COMPANY 5,874,650
19,633 RENOVIS INCORPORATED+ 199,275
108,600 SEROLOGICALS CORPORATION+ 2,215,440
40,161,401
-----------
95
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMUNICATIONS - 1.59%
345,600 CROWN CASTLE INTERNATIONAL CORPORATION+ $ 4,364,928
130,400 HEARST-ARGYLE TELEVISION INCORPORATED 3,506,456
7,871,384
-----------
DEPOSITORY INSTITUTIONS - 4.52%
28,900 BANK OF HAWAII CORPORATION 1,338,937
66,800 BANKATLANTIC BANCORP INCORPORATED CLASS A 1,132,928
90,230 COMMERCE BANCSHARES INCORPORATED 4,304,873
50,297 CULLEN FROST BANKERS INCORPORATED 2,150,700
308,700 FIRST NIAGARA FINANCIAL GROUP INCORPORATED 4,213,755
86,300 GOLD BANC CORP INCORPORATED 1,406,690
59,300 GREATER BAY BANCORP 1,734,525
102,200 LOCAL FINANCIAL CORPORATION+ 2,227,960
111,400 R&G FINANCIAL CORPORATION CLASS B 3,847,756
22,358,124
-----------
EATING & DRINKING PLACES - 0.72%
102,450 CEC ENTERTAINMENT INCORPORATED+ 3,555,015
-----------
ELECTRIC, GAS & SANITARY SERVICES - 2.20%
232,800 AGL RESOURCES INCORPORATED 6,755,856
137,300 PNM RESOURCES INCORPORATED 4,125,865
10,881,721
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 7.37%
541,500 AEROFLEX INCORPORATED+ 7,288,590
94,400 AMIS HOLDINGS INCORPORATED+ 1,532,112
388,400 AMPHENOL CORPORATION CLASS A+ 11,535,480
317,400 ARTISAN COMPONENTS INCORPORATED+ 7,074,846
57,000 DSP GROUP INCORPORATED+ 1,466,610
110,800 EXAR CORPORATION+ 2,049,800
198,400 METHODE ELECTRONICS 2,559,360
178,800 MICREL INCORPORATED+ 2,386,980
223,300 MICROTUNE INCORPORATED+ 556,017
36,449,795
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 2.82%
11,300 CDI CORPORATION 364,764
335,196 DIVERSA CORPORATION+ 2,969,837
283,400 LEXICON GENETICS INCORPORATED+ 1,776,918
35,600 MAXMUS INCORPORATED+ 1,246,000
143,221 MTC TECHNOLOGIES INCORPORATED+ 3,596,279
54,400 NEUROCHEM INCORPORATED+ 1,163,616
128,600 SEATTLE GENETICS INCORPORATED+ 1,087,956
70,600 TULARIK INCORPORATED+ 1,733,230
13,938,600
-----------
FOOD & KINDRED PRODUCTS - 0.95%
285,500 VOLUME SERVICES AMERICA HOLDINGS INCORPORATED IDS 4,710,750
-----------
96
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FURNITURE & FIXTURES - 0.45%
84,400 HERMAN MILLER INCORPORATED $ 2,247,572
-----------
HEALTH SERVICES - 3.81%
195,675 DAVITA INCORPORATED+ 9,343,481
74,300 EDWARDS LIFESCIENCES CORPORATION+ 2,373,885
106,944 SYMBION INCORPORATED+ 1,942,103
153,716 UNITED SURGICAL PARTNERS INTERNATIONAL INCORPORATED+ 5,217,121
18,876,590
-----------
HOLDING & OTHER INVESTMENT OFFICES - 3.82%
186,745 ASHFORD HOSPITALITY TRUST 1,902,931
166,864 COUSINS PROPERTIES INCORPORATED 5,471,471
101,060 HEALTH CARE REIT INCORPORATED 4,103,036
94,379 POST PROPERTIES INCORPORATED 2,718,115
240,800 UNITED DOMINION REALTY TRUST INCORPORATED 4,724,496
18,920,049
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.06%
290,500 GAMESTOP CORPORATION CLASS A+ 5,234,810
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 1.68%
279,500 BOYD GAMING CORPORATION 6,397,755
105,800 ORIENT EXPRESS HOTELS LIMITED CLASS A 1,892,762
8,290,517
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.72%
86,000 ACTUANT CORPORATION CLASS A+ 3,373,780
141,900 GRANT PRIDECO INCORPORATED+ 2,199,450
152,800 IDEX CORPORATION 6,643,744
112,800 SCIENTIFIC GAMES CORPORATION CLASS A+ 2,111,616
175,800 ULTRATECH INCORPORATED+ 4,097,898
18,426,488
-----------
INSURANCE CARRIERS - 5.86%
39,731 AMERIGROUP CORPORATION+ 1,815,707
193,100 CONSECO INCORPORATED+ 4,472,196
357,900 PLATINUM UNDERWRITERS HOLDINGS LIMITED 11,470,695
274,800 REINSURANCE GROUP OF AMERICA INCORPORATED 11,258,556
29,017,154
-----------
JUSTICE, PUBLIC ORDER & SAFETY - 0.00%
700 CORRECTIONS CORPORATION OF AMERICA+ 24,920
-----------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS
TRANSPORTATION - 0.97%
328,900 LAIDLAW INTERNATIONAL INCORPORATED+ 4,785,495
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 8.10%
212,800 DRS TECHNOLOGIES INCORPORATED+ 5,954,144
240,200 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+ 13,220,608
163,300 FOSSIL INCORPORATED+ 5,446,055
64,600 HANGER ORTHOPEDIC GROUP INCORPORATED+ 1,166,030
97
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (continued)
50,500 ITRON INCORPORATED+ $ 939,805
183,600 MILLIPORE CORPORATION+ 9,433,368
67,100 PHOTON DYNAMICS INCORPORATED+ 2,189,473
58,600 ROFIN-SINAR TECHNOLOGIES INCORPORATED+ 1,749,210
40,098,693
-----------
METAL MINING - 0.67%
222,200 GOLDCORP INCORPORATED 3,290,782
-----------
MISCELLANEOUS RETAIL - 1.99%
551,100 1-800-FLOWERS.COM INCORPORATED CLASS A+ 5,274,027
162,100 PETCO ANIMAL SUPPLIES INCORPORATED+ 4,567,978
9,842,005
-----------
MOTION PICTURES - 1.39%
93,400 CARMIKE CINEMAS INCORPORATED+ 3,481,111
193,814 METRO-GOLDWYN-MAYER INCORPORATED+ 3,372,364
6,853,475
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.51%
54,700 OVERNITE CORPORATION 1,258,100
88,393 QUALITY DISTRIBUTION INCORPORATED+ 1,246,341
2,504,441
-----------
OIL & GAS EXTRACTION - 5.93%
3,100 COMSTOCK RESOURCES INCORPORATED+ 61,597
360,497 DENBURY RESOURCES INCORPORATED+ 6,077,980
74,300 HOUSTON EXPLORATION COMPANY+ 3,323,439
598,500 KEY ENERGY SERVICES INCORPORATED+ 6,583,500
264,300 REMINGTON OIL & GAS CORPORATION+ 5,219,925
100,000 SOUTHWESTERN ENERGY COMPANY+ 2,412,000
168,700 ST MARY LAND & EXPLORATION COMPANY 5,639,641
29,318,082
-----------
PERSONAL SERVICES - 1.09%
121,500 REGIS CORPORATION 5,399,460
-----------
PHARMACEUTICALS - 0.05%
64,242 SAVIENT PHARMACEUTICALS INCORPORATED+ 242,835
-----------
PRIMARY METAL INDUSTRIES - 0.38%
50,600 UNITED STATES STEEL CORPORATION 1,885,862
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.91%
97,500 BANTA CORPORATION 4,513,275
-----------
RAILROAD TRANSPORTATION - 0.54%
193,700 KANSAS CITY SOUTHERN+ 2,692,430
-----------
REAL ESTATE - 0.32%
29,200 LNR PROPERTY CORPORATION 1,563,076
-----------
98
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 0.37%
146,000 KNIGHT TRADING GROUP INCORPORATED+ $ 1,848,360
------------
TEXTILE MILL PRODUCTS - 1.04%
191,600 ALBANY INTERNATIONAL CORPORATION CLASS A 5,152,124
------------
TRANSPORTATION BY AIR - 1.19%
103,500 CONTINENTAL AIRLINES INCORPORATED CLASS B+ 1,296,855
173,400 EGL INCORPORATED+ 3,114,264
146,700 NORTHWEST AIRLINES CORPORATION+ 1,483,137
5,894,256
------------
TRANSPORTATION SERVICES - 0.48%
131,100 NAVIGANT INTERNATIONAL INCORPORATED+ 2,359,800
------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.29%
218,700 AIRGAS INCORPORATED 4,658,310
49,000 SCHOOL SPECIALTY INCORPORATED+ 1,742,930
6,401,240
------------
WHOLESALE TRADE-DURABLE GOODS - 0.97%
173,500 PEP BOYS-MANNY, MOE & JACK 4,814,625
------------
TOTAL COMMON STOCK (COST $383,597,765) 462,565,015
------------
COLLATERAL FOR SECURITIES LENDING - 16.83%
COLLATERAL FOR SECURITY LENDING 83,270,428
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $83,270,428) 83,270,428
------------
INVESTMENT COMPANIES - 0.17%
58,852 TECHNOLOGY INVESTMENT CAPITAL CORPORATION 858,651
TOTAL INVESTMENT COMPANIES (COST $884,348) 858,651
------------
SHORT-TERM INVESTMENTS - 6.09%
MUTUAL FUND - 6.09%
30,112,737 WELLS FARGO MONEY MARKET TRUST~ 30,112,737
------------
TOTAL SHORT-TERM INVESTMENTS (COST $30,112,737) 30,112,737
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $497,865,278)* 116.58% $576,806,831
OTHER ASSETS AND LIABILITIES, NET (16.58) (82,016,370)
------ ------------
TOTAL NET ASSETS 100.00% $494,790,461
------ ------------
+ NON-INCOME EARNING SECURITIES.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
(B) SECURITY WAS ACQUIRED THROUGH A PRIVATE PLACEMENT AND MAY NOT BE PUBLICLY
SOLD WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933. ADDITIONAL
INFORMATION ON THE SECURITY IS AS FOLLOWS:
SECURITY ACQUISITION DATE SHARES COST VALUE PER SHARE
- -------- ---------------- ------ ---- ---------------
CONTINENTAL SOUTHERN RESOURCES INC 2/17/04 220,300 $440,600 $3.26
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
99
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 100.02%
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO $521,969,084
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $485,900,875) 521,969,084
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $485,900,875) 100.02% $521,969,084
OTHER ASSETS AND LIABILITIES, NET (0.02) (110,787)
------ ------------
TOTAL NET ASSETS 100.00% $521,858,297
------ ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
100
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 99.95%
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO $85,468,891
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $71,430,828) 85,468,891
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST $71,430,828) 99.95% $85,468,891
OTHER ASSETS AND LIABILITIES, NET 0.05 41,172
------ -----------
TOTAL NET ASSETS 100.00% $85,510,063
====== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
101
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.93%
AGRICULTURAL SERVICES - 1.40%
13,800 VCA ANTECH INCORPORATED+ $ 491,694
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM
FABRICS & SIMILAR MATERIALS - 1.49%
3,800 NOBEL BIOCARE HOLDING AG 521,924
-----------
CHEMICALS & ALLIED PRODUCTS - 47.38%
14,500 ABGENIX INCORPORATED+ 192,705
20,650 AMGEN INCORPORATED+ 1,201,210
11,000 ANGIOTECH PHARMACEUTICALS INCORPORATED+ 268,510
15,900 AVENTIS SA 1,222,190
15,600 ELI LILLY & COMPANY 1,043,640
8,900 EYETECH PHARMACEUTICALS INCORPORATED+ 295,480
5,000 FOREST LABORATORIES INCORPORATED+ 358,100
11,050 GENENTECH INCORPORATED+ 1,169,311
10,800 GILEAD SCIENCES INCORPORATED+ 602,316
7,000 IMCLONE SYSTEMS INCORPORATED+ 356,020
18,500 LIGAND PHARMACEUTICALS INCORPORATED CLASS B+ 371,850
6,500 MEDICINES COMPANY+ 209,365
11,000 MERCK & COMPANY INCORPORATED 486,090
7,600 MGI PHARMA INCORPORATED+ 465,576
39,500 MILLENNIUM PHARMACEUTICALS INCORPORATED+ 667,550
17,500 NEKTAR THERAPEUTICS+ 377,650
2,900 NEUROCRINE BIOSCIENCES INCORPORATED+ 171,390
13,450 OSI PHARMACEUTICALS INCORPORATED+ 516,480
79,990 PFIZER INCORPORATED 2,803,649
4,500 PHARMACEUTICAL RESOURCES INCORPORATED+ 255,870
12,500 PROTEIN DESIGN LABS INCORPORATED+ 297,750
17,500 SHIRE PHARMACEUTICALS GROUP PLC ADR+ 515,025
8,114 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 514,509
15,000 UNITED THERAPEUTICS CORPORATION+ 357,450
7,500 WATSON PHARMACEUTICALS INCORPORATED+ 320,925
42,450 WYETH 1,593,998
16,634,609
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 2.27%
8,000 AMYLIN PHARMACEUTICALS INCORPORATED+ 189,520
12,050 ICOS CORPORATION+ 446,453
6,000 TELIK INCORPORATED+ 161,040
797,013
-----------
HEALTH SERVICES - 12.14%
20,000 BIOGEN IDEC INCORPORATED+ 1,112,000
25,000 CAREMARK RX INCORPORATED+ 831,250
20,000 COVANCE INCORPORATED+ 688,800
20,000 KINETIC CONCEPTS INCORPORATED+ 897,000
7,500 ROCHE HOLDING AG 732,624
4,261,674
-----------
102
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.06%
4,300 VARIAN MEDICAL SYSTEMS INCORPORATED+ $ 371,133
------------
INSURANCE CARRIERS - 7.84%
16,900 ANTHEM INCORPORATED+ 1,531,816
12,500 UNITEDHEALTH GROUP INCORPORATED 805,500
3,650 WELLPOINT HEALTH NETWORKS INCORPORATED+ 415,078
2,752,394
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 21.07%
4,500 ALLERGAN INCORPORATED 378,720
15,000 BOSTON SCIENTIFIC CORPORATION+ 635,700
5,600 C.R. BARD INCORPORATED 546,784
9,600 DJ ORTHOPEDICS INCORPORATED+ 248,160
10,000 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+ 550,400
13,200 GUIDANT CORPORATION 836,484
18,200 KYPHON INCORPORATED+ 435,162
34,800 MEDTRONIC INCORPORATED 1,661,700
14,600 ST JUDE MEDICAL INCORPORATED+ 1,052,660
8,000 STRYKER CORPORATION 708,240
11,150 WRIGHT MEDICAL GROUP INCORPORATED+ 342,305
7,396,315
------------
MEDICAL EQUIPMENT & SUPPLIES - 1.34%
13,000 WILSON GREATBATCH TECHNOLOGIES INCORPORATED+ 471,640
------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.01%
6,500 AMERISOURCEBERGEN CORPORATION 355,420
------------
WHOLESALE TRADE-DURABLE GOODS - 1.93%
30,500 CYTYC CORPORATION+ 678,625
------------
TOTAL COMMON STOCK (COST $30,281,247) 34,732,441
------------
COLLATERAL FOR SECURITIES LENDING - 29.37%
COLLATERAL FOR SECURITY LENDING 10,311,838
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $10,311,838) 10,311,838
------------
SHORT-TERM INVESTMENTS - 0.78%
MUTUAL FUND - 0.78%
273,915 WELLS FARGO MONEY MARKET TRUST~ 273,915
------------
TOTAL SHORT-TERM INVESTMENTS (COST $273,915) 273,915
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $40,867,000)* 129.08% $ 45,318,194
OTHER ASSETS AND LIABILITIES, NET (29.08) (10,210,820)
------ ------------
TOTAL NET ASSETS 100.00% $ 35,107,374
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
103
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 87.32%
BUSINESS SERVICES - 51.29%
103,090 AMDOCS LIMITED+ $ 2,864,871
75,440 ASK JEEVES INCORPORATED+ 2,695,471
54,400 ASPEN TECHNOLOGY INCORPORATED+ 444,448
92,610 AUTODESK INCORPORATED 2,928,328
158,670 CITRIX SYSTEMS INCORPORATED+ 3,430,446
70,400 CNET NETWORKS INCORPORATED+ 727,232
6,900 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION+ 312,225
34,340 COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED 922,372
168,280 DOUBLECLICK INCORPORATED+ 1,893,150
51,370 EBAY INCORPORATED+ 3,561,482
24,600 F5 NETWORKS INCORPORATED+ 832,710
70,390 MERCURY INTERACTIVE CORPORATION+ 3,153,472
90,630 MICROSOFT CORPORATION 2,263,031
44,830 MICROSTRATEGY INCORPORATED CLASS A+ 2,389,439
96,820 MONSTER WORLDWIDE INCORPORATED+ 2,536,684
105,250 NCR CORPORATION+ 4,637,315
18,470 NETEASE.COM INCORPORATED ADR+ 919,621
262,040 NETWORK ASSOCIATES INCORPORATED+ 4,716,720
390,830 RED HAT INCORPORATED+ 8,934,374
165,210 RETEK INCORPORATED+ 1,248,988
79,520 SAP AG 3,125,931
320,610 SIEBEL SYSTEMS INCORPORATED+ 3,690,221
101,380 SINA CORPORATION+ 3,835,205
101,400 SYMANTEC CORPORATION+ 4,694,820
57,000 TREND MICRO INCORPORATED 1,972,413
57,315 VERISIGN INCORPORATED+ 950,856
71,690 VERITAS SOFTWARE CORPORATION+ 1,929,178
81,930 WIND RIVER SYSTEMS INCORPORATED+ 906,965
216 YAHOO JAPAN CORPORATION+ 2,595,281
130,590 YAHOO! INCORPORATED+ 6,345,368
81,458,617
-----------
COMMUNICATIONS - 0.49%
45,530 FOUNDRY NETWORKS INCORPORATED+ 781,750
-----------
104
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 18.84%
13,800 ADVANTEST CORPORATION $ 1,131,485
285,790 COMVERSE TECHNOLOGY INCORPORATED+ 5,184,231
91,570 CYPRESS SEMICONDUCTOR+ 1,874,438
47,350 MICRON TECHNOLOGY INCORPORATED+ 791,218
193,440 MOTOROLA INCORPORATED 3,404,544
111,371 NATIONAL SEMICONDUCTOR CORPORATION+ 4,948,213
172,900 NETWORK APPLIANCE INCORPORATED+ 3,708,705
33,780 NOKIA OYJ ADR 685,058
2,900 POWER INTEGRATIONS INCORPORATED+ 85,057
20,010 RESEARCH IN MOTION LIMITED+ 1,867,133
42,320 SILICON LABORATORIES INCORPORATED+ 2,237,882
67,030 SOHU.COM INCORPORATED+ 1,668,377
84,280 TELEFONAKTIEBOLAGET LM ERICSSON ADR+ 2,338,770
29,925,111
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 1.03%
31,770 AFFYMETRIX INCORPORATED+ 1,072,238
27,900 PHARMACOPEIA INCORPORATED+ 561,348
1,633,586
------------
HOLDING & OTHER INVESTMENT OFFICES - 1.89%
64,000 SOFTBANK CORPORATION 2,995,915
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.65%
29,200 CDW CORPORATION 1,974,212
238,206 CISCO SYSTEMS INCORPORATED+ 5,602,605
114,510 JUNIPER NETWORKS INCORPORATED+ 2,978,405
10,555,222
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 1.64%
82,516 AGILENT TECHNOLOGIES INCORPORATED+ 2,609,981
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.98%
110,060 TYCO INTERNATIONAL LIMITED 3,153,219
------------
WHOLESALE TRADE-DURABLE GOODS - 3.51%
22,340 SAMSUNG ELECTRONICS GDR++ 5,573,064
------------
TOTAL COMMON STOCK (COST $119,244,635) 138,686,465
------------
COLLATERAL FOR SECURITIES LENDING - 49.08%
COLLATERAL FOR SECURITY LENDING 77,943,266
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $77,943,266) 77,943,266
------------
INVESTMENT COMPANIES - 3.12%
25,870 I SHARES NASDAQ BIOTECH INDEX FUND+ 1,998,458
74,720 SEMICONDUCTOR HOLDERS TRUST 2,951,440
TOTAL INVESTMENT COMPANIES (COST $5,000,066) 4,949,898
------------
105
WELLS FARGO STOCK FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 10.68%
MUTUAL FUND - 10.68%
16,968,395 WELLS FARGO MONEY MARKET TRUST~ $ 16,968,395
------------
TOTAL SHORT-TERM INVESTMENTS (COST $16,968,395) 16,968,395
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $219,156,362)* 150.20% $238,548,024
OTHER ASSETS AND LIABILITIES, NET (50.20) (79,728,837)
------ ------------
TOTAL NET ASSETS 100.00% $158,819,187
====== ============
+ NON-INCOME EARNING SECURITIES.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
~ 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.
STRIKE PRICE/
CONTRACTS EXPIRATION DATE VALUE
WRITTEN OPTIONS
(385) EBAY INCORPORATED CALL $75 07/17/2004 $ (88,550)
(1,070) FOUNDRY NETWORKS INCORPORATED PUT 20 06/19/2004 (406,600)
(783) MARVELL TECHNOLOGY GROUP LIMITED PUT 43 05/22/2004 (125,280)
(1,560) VERITAS SOFTWARE CORPORATION PUT 30 08/21/2004 (795,600)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $1,004,465) (1,416,030)
-----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
106
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO STOCK FUNDS STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2004
(UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED DIVERSIFIED EQUITY EQUITY
EQUITY SMALL CAP INCOME INDEX
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................... $1,455,779,396 $ 428,116,961 $1,233,381,348 $ 398,715,003
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................ 0 0 0 50,036,796
INVESTMENTS IN AFFILIATES ................................ 0 0 0 11,864,043
-------------- ------------- -------------- -------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ........... 1,455,779,396 428,116,961 1,233,381,348 460,615,842
-------------- ------------- -------------- -------------
CASH ..................................................... 0 0 0 50,000
RECEIVABLE FOR FUND SHARES ISSUED ........................ 393,700 35,627 521,186 264,938
RECEIVABLE FOR INVESTMENTS SOLD .......................... 0 0 0 22,108
RECEIVABLES FOR DIVIDENDS AND INTEREST ................... 0 0 0 503,067
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ........ 0 0 0 0
PREPAID EXPENSES AND OTHER ASSETS ........................ 0 0 84,808 0
-------------- ------------- -------------- -------------
TOTAL ASSETS ................................................ 1,456,173,096 428,152,588 1,233,987,342 461,455,955
-------------- ------------- -------------- -------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS .. 0 0 0 9,300
PAYABLE FOR FUND SHARES REDEEMED ......................... 218,804 0 275,893 129,660
PAYABLE FOR INVESTMENTS PURCHASED ........................ 0 0 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .... 577,300 174,451 273,844 120,431
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR .................. 112,987 37,279 135,110 127,810
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................... 0 0 0 50,036,796
ACCRUED EXPENSES AND OTHER LIABILITIES ................... 165,406 52,909 0 42,661
TOTAL LIABILITIES ........................................... 1,074,497 264,639 684,847 50,466,658
-------------- ------------- -------------- -------------
TOTAL NET ASSETS ............................................ $1,455,098,599 $ 427,887,949 $1,233,302,495 $ 410,989,297
============== ============= ============== =============
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .......................................... $1,005,550,441 $ 341,882,106 $1,169,070,299 $ 226,880,107
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............... 1,017,528 (832,271 ) 943,233 744,636
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .... 55,018,694 20,867,115 50,040,416 6,456,832
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ........ 393,511,936 65,970,999 13,248,547 176,960,197
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES .... 0 0 0 (52,475)
-------------- ------------- -------------- -------------
TOTAL NET ASSETS ............................................ $1,455,098,599 $ 427,887,949 $1,233,302,495 $ 410,989,297
-------------- ------------- -------------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ..................................... $ 97,865,211 N/A $ 190,994,024 $ 349,964,700
SHARES OUTSTANDING - CLASS A ............................. 2,406,841 N/A 5,477,411 7,178,846
NET ASSET VALUE PER SHARE - CLASS A ...................... $ 40.66 N/A $ 34.87 $ 48.75
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............ $ 43.14 N/A $ 37.00 $ 51.72
NET ASSETS - CLASS B ..................................... $ 96,184,815 N/A $ 95,592,264 $ 61,024,597
SHARES OUTSTANDING - CLASS B ............................. 2,439,591 N/A 2,742,263 1,254,435
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ... $ 39.43 N/A $ 34.86 $ 48.65
NET ASSETS - CLASS C ..................................... $ 11,675,976 N/A $ 12,994,135 N/A
SHARES OUTSTANDING - CLASS C ............................. 292,392 N/A 361,365 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ... $ 39.93 N/A $ 35.96 N/A
NET ASSETS - INSTITUTIONAL CLASS ......................... $1,249,372,597 $ 427,887,949 $ 933,722,072 N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................. 30,725,216 31,736,544 26,812,489 N/A
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - INSTITUTIONAL CLASS ........................... $ 40.66 $ 13.48 $ 34.82 N/A
-------------- ------------- -------------- -------------
INVESTMENTS AT COST ......................................... $1,062,267,460 $ 362,145,962 $1,220,132,801 $ 283,655,645
============== ============= ============== =============
SECURITIES ON LOAN, AT MARKET VALUE ......................... $ 0 $ 0 $ 0 $ 48,154,110
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
108
STATEMENT OF ASSETS AND LIABILITIES -- WELLS FARGO STOCK FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH INTERNATIONAL
GROWTH EQUITY INDEX EQUITY
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................... $ 177,942,124 $ 561,969,371 $ 1,062,200,960 $ 379,912,943
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................ 29,725,174 0 0 20,823,301
INVESTMENTS IN AFFILIATES ................................ 1,539,748 0 0 5,801,872
------------- ------------- --------------- -------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ........... 209,207,046 561,969,371 1,062,200,960 406,538,116
------------- ------------- --------------- -------------
CASH ..................................................... 50,000 0 0 50,000
RECEIVABLE FOR FUND SHARES ISSUED ........................ 56,941 63,216 53,044 361,101
RECEIVABLE FOR INVESTMENTS SOLD .......................... 0 0 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ................... 104,600 0 0 1,834,306
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ........ 0 0 0 0
PREPAID EXPENSES AND OTHER ASSETS ........................ 0 0 0 0
------------- ------------- --------------- -------------
TOTAL ASSETS ................................................ 209,418,587 562,032,587 1,062,254,004 408,783,523
------------- ------------- --------------- -------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS .. 0 0 0 0
PAYABLE FOR FUND SHARES REDEEMED ......................... 184,239 57,879 53,945 31,564
PAYABLE FOR INVESTMENTS PURCHASED ........................ 0 0 0 949,911
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .... 136,416 235,487 145,905 394,397
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR .................. 38,569 21,656 1,438 31,938
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................... 29,725,174 0 0 20,823,301
ACCRUED EXPENSES AND OTHER LIABILITIES ................... 52,074 12,972 30,255 148,608
TOTAL LIABILITIES ........................................... 30,136,472 327,994 231,543 22,379,719
------------- ------------- --------------- -------------
TOTAL NET ASSETS ............................................ $ 179,282,115 $ 561,704,593 $ 1,062,022,461 $ 386,403,804
============= ============= =============== =============
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .......................................... $ 212,048,731 $ 354,275,437 $ 776,462,086 $ 496,149,567
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............... (510,161) (1,664,037) 3,569,465 (643,137)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .... (64,010,531) (5,114,458) (49,789,625) (183,181,146)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ........ 31,754,076 214,207,651 331,780,535 74,078,520
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES .... 0 0 0 0
------------- ------------- --------------- -------------
TOTAL NET ASSETS ............................................ $ 179,282,115 $ 561,704,593 $ 1,062,022,461 $ 386,403,804
------------- ------------- --------------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ..................................... $ 133,517,501 $ 20,955,813 N/A $ 61,703,604
SHARES OUTSTANDING - CLASS A ............................. 11,227,493 735,515 N/A 5,333,328
NET ASSET VALUE PER SHARE - CLASS A ...................... $ 11.89 $ 28.49 N/A $ 11.57
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............ $ 12.62 $ 30.23 N/A $ 12.28
NET ASSETS - CLASS B ..................................... $ 9,243,419 $ 14,250,602 N/A $ 18,490,941
SHARES OUTSTANDING - CLASS B ............................. 1,140,052 537,279 N/A 1,661,983
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ... $ 8.11 $ 26.52 N/A $ 11.13
NET ASSETS - CLASS C ..................................... N/A $ 3,698,286 N/A $ 3,006,594
SHARES OUTSTANDING - CLASS C ............................. N/A 134,473 N/A 270,627
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ... N/A $ 27.50 N/A $ 11.11
NET ASSETS - INSTITUTIONAL CLASS ......................... $ 36,521,195 $ 522,799,892 $ 1,062,022,461 $ 303,202,665
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................. 2,601,165 18,190,362 23,423,237 26,246,744
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - INSTITUTIONAL CLASS ........................... $ 14.04 $ 28.74 $ 45.34 $ 11.55
------------- ------------- --------------- -------------
INVESTMENTS AT COST ......................................... $ 177,452,970 $ 347,761,720 $ 730,420,425 $ 332,495,651
============= ============= =============== =============
SECURITIES ON LOAN, AT MARKET VALUE ......................... $ 28,908,296 $ 0 $ 0 $ 20,122,632
LARGE CAP LARGE CAP LARGE COMPANY
APPRECIATION VALUE GROWTH
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................... $ 23,119,595 $ 2,019,064 $ 2,832,121,215
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................ 0 0 0
INVESTMENTS IN AFFILIATES ................................ 0 0 0
------------ ----------- ---------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ........... 23,119,595 2,019,064 2,832,121,215
------------ ----------- ---------------
CASH ..................................................... 0 0 0
RECEIVABLE FOR FUND SHARES ISSUED ........................ 791 0 872,054
RECEIVABLE FOR INVESTMENTS SOLD .......................... 0 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ................... 0 0 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ........ 0 8,968 0
PREPAID EXPENSES AND OTHER ASSETS ........................ 0 45,633 0
------------ ----------- ---------------
TOTAL ASSETS ................................................ 23,120,386 2,073,665 2,832,993,269
------------ ----------- ---------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS .. 0 0 0
PAYABLE FOR FUND SHARES REDEEMED ......................... 6,801 0 509,617
PAYABLE FOR INVESTMENTS PURCHASED ........................ 0 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .... 4,324 0 588,720
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR .................. 4,657 2,171 346,072
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................... 0 0 0
ACCRUED EXPENSES AND OTHER LIABILITIES ................... 101,183 0 697,749
TOTAL LIABILITIES ........................................... 116,965 2,171 2,142,158
------------ ----------- ---------------
TOTAL NET ASSETS ............................................ $ 23,003,421 $ 2,071,494 $ 2,830,851,111
============ =========== ===============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................. $ 19,908,605 $ 2,011,439 $ 3,033,586,339
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............... (7,509) 579 (11,441,184)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .... 443,516 (16,698) (399,662,484)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ........ 2,658,809 76,174 208,368,440
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES .... 0 0 0
------------ ----------- ---------------
TOTAL NET ASSETS ............................................ $ 23,003,421 $ 2,071,494 $ 2,830,851,111
------------ ----------- ---------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ..................................... $ 2,041,634 $ 1,198,401 $ 422,294,609
SHARES OUTSTANDING - CLASS A ............................. 202,735 105,134 8,882,890
NET ASSET VALUE PER SHARE - CLASS A ...................... $ 10.07 $ 11.40 $ 47.54
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............ $ 10.68 $ 12.10 $ 50.44
NET ASSETS - CLASS B ..................................... $ 1,587,344 $ 517,687 $ 255,208,355
SHARES OUTSTANDING - CLASS B ............................. 160,756 45,588 5,905,748
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ... $ 9.87 $ 11.36 $ 43.21
NET ASSETS - CLASS C ..................................... $ 697,073 $ 205,637 $ 43,818,592
SHARES OUTSTANDING - CLASS C ............................. 70,563 18,115 1,012,080
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ... $ 9.88 $ 11.35 $ 43.30
NET ASSETS - INSTITUTIONAL CLASS ......................... $ 18,677,370 $ 149,769 $ 2,109,529,555
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................. 1,844,649 13,118 46,755,300
NET ASSET VALUE AND OFFERING PRICE PER
SHARE - INSTITUTIONAL CLASS ........................... $ 10.13 $ 11.42 $ 45.12
------------ ----------- ---------------
INVESTMENTS AT COST ......................................... $ 20,460,786 $ 1,942,890 $ 2,623,752,775
============ =========== ===============
SECURITIES ON LOAN, AT MARKET VALUE ......................... $ 0 $ 0 $ 0
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
109
WELLS FARGO STOCK FUNDS STATEMENT OF ASSETS AND LIABILITIES --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY
MONTGOMERY INSTITUTIONAL MONTGOMERY
EMERGING EMERGING MID CAP MONTGOMERY
MARKETS FOCUS MARKETS GROWTH SMALL CAP
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $ 196,586,047 $100,641,007 $103,839,765 $105,278,083
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 6,923,382 32,253,373 45,094,995 31,098,494
INVESTMENTS IN AFFILIATES ................................... 27,307,922 3,722,699 2,375,339 2,344,387
------------- ------------ ------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) .............. 230,817,351 136,617,079 151,310,099 138,720,964
------------- ------------ ------------ ------------
CASH ........................................................ 0 0 50,000 0
FOREIGN CURRENCY, AT VALUE .................................. 5,730,124 706,311 0 0
RECEIVABLE FOR FUND SHARES ISSUED ........................... 241,399 4,000 96,778 12,407
RECEIVABLE FOR INVESTMENTS SOLD ............................. 0 0 2,009,892 1,071,658
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 320,893 422,990 7,712 1,975
PREPAID EXPENSES AND OTHER ASSETS ........................... 0 0 46,005 18,891
------------- ------------ ------------ ------------
TOTAL ASSETS ................................................... 237,109,767 137,750,380 153,520,486 139,825,895
------------- ------------ ------------ ------------
LIABILITIES
OPTION WRITTEN, AT VALUE .................................... 0 0 0 0
FOREIGN TAXES PAYABLE ....................................... 299,640 52,000 0 0
PAYABLE FOR FUND SHARES REDEEMED ............................ 108,662 0 54,404 0
PAYABLE FOR INVESTMENTS PURCHASED ........................... 0 0 1,864,371 1,483,245
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 240,709 52,705 108,771 90,598
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ..................... 42,222 1,821 30,634 22,680
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 6,923,382 32,253,373 45,094,995 31,098,494
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 211,826 47,814 0 0
TOTAL LIABILITIES .............................................. 7,826,441 32,407,713 47,153,175 32,695,017
------------- ------------ ------------ ------------
TOTAL NET ASSETS ............................................... $ 229,283,326 $105,342,667 $106,367,311 $107,130,878
============= ============ ============ ============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................. $ 508,071,908 $126,992,593 $ 91,398,291 $ 96,385,943
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................. (367,488) 217,495 (432,244) (538,835)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ....... (307,012,177) (49,642,786) (316,082) (2,650,478)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............ 28,591,083 27,775,365 15,717,346 13,934,248
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP
AGREEMENTS, AND SHORT SALES .............................. 0 0 0 0
------------- ------------ ------------ ------------
TOTAL NET ASSETS ............................................... $ 229,283,326 $105,342,667 $106,367,311 $107,130,878
------------- ------------ ------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ........................................ $ 169,245,060 N/A $ 98,393,680 $102,589,069
SHARES OUTSTANDING - CLASS A ................................ 7,662,839 N/A 16,062,601 8,726,195
NET ASSET VALUE PER SHARE - CLASS A ......................... $ 22.09 N/A $ 6.13 $ 11.76
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............... $ 23.44 N/A $ 6.50 $ 12.48
NET ASSETS - CLASS B ........................................ $ 2,428,603 N/A $ 6,990,879 $ 598,235
SHARES OUTSTANDING - CLASS B ................................ 111,062 N/A 1,169,804 51,203
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ...... $ 21.87 N/A $ 5.98 $ 11.68
NET ASSETS - CLASS C ........................................ $ 3,068,894 N/A $ 982,752 $ 211,602
SHARES OUTSTANDING - CLASS C ................................ 141,031 N/A 164,475 18,089
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ...... $ 21.76 N/A $ 5.98 $ 11.70
NET ASSETS - INSTITUTIONAL CLASS ............................ $ 54,540,769 N/A N/A $ 3,731,972
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................... 2,481,794 N/A N/A 316,986
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL
CLASS .................................................... $ 21.98 N/A N/A $ 11.77
NET ASSETS - SELECT CLASS ................................... N/A $105,342,667 N/A N/A
SHARES OUTSTANDING - SELECT CLASS ........................... N/A 1,935,170 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - SELECT
CLASS .................................................... N/A $ 54.44 N/A N/A
------------- ------------ ------------ ------------
INVESTMENTS AT COST ............................................ $ 202,292,061 $108,853,791 $135,592,753 $124,786,716
============= ============ ============ ============
FOREIGN CURRENCIES AT COST ..................................... $ 5,666,096 $ 700,767 $ 0 $ 0
SECURITIES ON LOAN, AT MARKET VALUE ............................ $ 6,713,095 $ 31,165,848 $ 42,702,707 $ 24,492,447
PREMIUMS RECEIVED ON WRITTEN OPTIONS ........................... $ 0 $ 0 $ 0 $ 0
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
110
STATEMENT OF ASSETS AND LIABILITIES -- WELLS FARGO STOCK FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SIFE
SPECIALIZED SMALL SMALL SMALL
FINANCIAL CAP CAP COMPANY
SERVICES GROWTH OPPORTUNITIES GROWTH
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $558,720,726 $ 164,980,346 $463,423,666 $521,969,084
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 33,978,229 51,584,074 83,270,428 0
INVESTMENTS IN AFFILIATES ................................... 0 1,754,234 30,112,737 0
------------ ------------- ------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) .............. 592,698,955 218,318,654 576,806,831 521,969,084
------------ ------------- ------------ ------------
CASH ........................................................ 1,827 50,000 50,000 0
FOREIGN CURRENCY, AT VALUE .................................. 0 0 0 0
RECEIVABLE FOR FUND SHARES ISSUED ........................... 19,065 526,989 28,322 1,017
RECEIVABLE FOR INVESTMENTS SOLD ............................. 10,808,633 1,672,347 3,632,449 0
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 996,894 2,478 114,555 0
PREPAID EXPENSES AND OTHER ASSETS ........................... 0 0 0 38,479
------------ ------------- ------------ ------------
TOTAL ASSETS ................................................... 604,525,374 220,570,468 580,632,157 522,008,580
------------ ------------- ------------ ------------
LIABILITIES
OPTION WRITTEN, AT VALUE .................................... 345,000 0 0 0
FOREIGN TAXES PAYABLE ....................................... 0 0 0 0
PAYABLE FOR FUND SHARES REDEEMED ............................ 113,737 94,759 40 0
PAYABLE FOR INVESTMENTS PURCHASED ........................... 12,828,750 2,170,306 2,069,045 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 487,410 147,083 442,340 104,506
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ..................... 132,934 55,013 42,807 45,777
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 33,978,229 51,584,074 83,270,428 0
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 266,778 28,684 17,036 0
TOTAL LIABILITIES .............................................. 48,152,838 54,079,919 85,841,696 150,283
------------ ------------- ------------ ------------
TOTAL NET ASSETS ............................................... $556,372,536 $ 166,490,549 $494,790,461 $521,858,297
============ ============= ============ ============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................. $428,822,805 $ 444,123,848 $374,465,523 $507,595,548
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................. 179,146 (997,734) (573,964) (2,935,282)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ....... 37,369,554 (297,748,705) 41,957,349 (18,870,178)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............ 89,977,116 21,113,140 78,941,553 36,068,209
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP
AGREEMENTS, AND SHORT SALES .............................. 23,915 0 0 0
------------ ------------- ------------ ------------
TOTAL NET ASSETS ............................................... $556,372,536 $ 166,490,549 $494,790,461 $521,858,297
------------ ------------- ------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ........................................ $537,605,650 $ 70,189,249 N/A $ 103,023
SHARES OUTSTANDING - CLASS A ................................ 135,005,061 4,314,804 N/A 3,644
NET ASSET VALUE PER SHARE - CLASS A ......................... $ 3.98 $ 16.27 N/A $ 28.27
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............... $ 4.22 $ 17.26 N/A $ 29.99
NET ASSETS - CLASS B ........................................ $ 16,551,520 $ 28,932,784 N/A $ 25,787
SHARES OUTSTANDING - CLASS B ................................ 4,170,636 1,876,251 N/A 913
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ...... $ 3.97 $ 15.42 N/A $ 28.24
NET ASSETS - CLASS C ........................................ $ 2,215,366 $ 11,475,807 N/A $ 24,786
SHARES OUTSTANDING - CLASS C ................................ 560,518 744,947 N/A 878
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ...... $ 3.95 $ 15.40 N/A $ 28.23
NET ASSETS - INSTITUTIONAL CLASS ............................ N/A $ 55,892,709 $494,790,461 $521,704,701
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................... N/A 3,353,077 15,201,733 18,446,206
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL
CLASS .................................................... N/A $ 16.67 $ 32.55 $ 28.28
NET ASSETS - SELECT CLASS ................................... N/A N/A N/A N/A
SHARES OUTSTANDING - SELECT CLASS ........................... N/A N/A N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - SELECT
CLASS .................................................... N/A N/A N/A N/A
------------ ------------- ------------ ------------
INVESTMENTS AT COST ............................................ $502,721,839 $ 197,205,514 $497,865,278 $485,900,875
============ ============= ============ ============
FOREIGN CURRENCIES AT COST ..................................... $ 0 $ 0 $ 0 $ 0
SECURITIES ON LOAN, AT MARKET VALUE ............................ $ 33,032,792 $ 48,926,605 $ 79,691,903 $ 0
PREMIUMS RECEIVED ON WRITTEN OPTIONS ........................... $ 368,915 $ 0 $ 0 $ 0
SMALL SPECIALIZED
COMPANY HEALTH SPECIALIZED
VALUE SCIENCES TECHNOLOGY
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................. $85,468,891 $34,732,441 $ 143,636,363
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................... 0 10,311,838 77,943,266
INVESTMENTS IN AFFILIATES ................................... 0 273,915 16,968,395
----------- ----------- -------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) .............. 85,468,891 45,318,194 238,548,024
----------- ----------- -------------
CASH ........................................................ 0 150,000 150,000
FOREIGN CURRENCY, AT VALUE .................................. 0 0 0
RECEIVABLE FOR FUND SHARES ISSUED ........................... 125,377 57,808 521,508
RECEIVABLE FOR INVESTMENTS SOLD ............................. 0 0 818,714
RECEIVABLES FOR DIVIDENDS AND INTEREST ...................... 0 11,076 59,763
PREPAID EXPENSES AND OTHER ASSETS ........................... 0 0 248,573
----------- ----------- -------------
TOTAL ASSETS ................................................... 85,594,268 45,537,078 240,346,582
----------- ----------- -------------
LIABILITIES
OPTION WRITTEN, AT VALUE .................................... 0 0 1,416,030
FOREIGN TAXES PAYABLE ....................................... 0 0 0
PAYABLE FOR FUND SHARES REDEEMED ............................ 29,237 48,988 97,869
PAYABLE FOR INVESTMENTS PURCHASED ........................... 0 0 1,558,778
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ....... 19,156 34,893 450,822
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ..................... 20,986 22,134 60,630
PAYABLE FOR SECURITIES LOANED (NOTE 2) ...................... 0 10,311,838 77,943,266
ACCRUED EXPENSES AND OTHER LIABILITIES ...................... 14,826 11,851 0
TOTAL LIABILITIES .............................................. 84,205 10,429,704 81,527,395
----------- ----------- -------------
TOTAL NET ASSETS ............................................... $85,510,063 $35,107,374 $ 158,819,187
=========== =========== =============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................. $69,077,807 $35,152,640 $ 360,702,768
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................. (99,283) (266,450) (1,398,140)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ....... 2,493,476 (4,230,658) (219,465,941)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS,
FOREIGN CURRENCIES AND TRANSLATION OF ASSETS AND
LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............ 14,038,063 4,451,842 19,392,065
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP
AGREEMENTS, AND SHORT SALES .............................. 0 0 (411,565)
----------- ----------- -------------
TOTAL NET ASSETS ............................................... $85,510,063 $35,107,374 $ 158,819,187
----------- ----------- -------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ........................................ $20,907,242 $14,016,293 $ 118,571,442
SHARES OUTSTANDING - CLASS A ................................ 1,561,828 1,291,329 26,967,454
NET ASSET VALUE PER SHARE - CLASS A ......................... $ 13.39 $ 10.85 $ 4.40
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............... $ 14.21 $ 11.51 $ 4.67
NET ASSETS - CLASS B ........................................ $10,624,561 $18,541,605 $ 33,649,646
SHARES OUTSTANDING - CLASS B ................................ 807,572 1,748,292 7,859,347
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B ...... $ 13.16 $ 10.61 $ 4.28
NET ASSETS - CLASS C ........................................ $ 2,539,685 $ 2,549,476 $ 6,598,099
SHARES OUTSTANDING - CLASS C ................................ 193,088 240,074 1,543,624
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C ...... $ 13.15 $ 10.62 $ 4.27
NET ASSETS - INSTITUTIONAL CLASS ............................ $51,438,575 N/A N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS .................... 3,826,478 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL
CLASS .................................................... $ 13.44 N/A N/A
NET ASSETS - SELECT CLASS ................................... N/A N/A N/A
SHARES OUTSTANDING - SELECT CLASS ........................... N/A N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - SELECT
CLASS .................................................... N/A N/A N/A
----------- ----------- -------------
INVESTMENTS AT COST ............................................ $71,430,828 $40,867,000 $ 219,156,362
=========== =========== =============
FOREIGN CURRENCIES AT COST ..................................... $ 0 $ 0 $ 0
SECURITIES ON LOAN, AT MARKET VALUE ............................ $ 0 $ 9,996,395 $ 75,132,272
PREMIUMS RECEIVED ON WRITTEN OPTIONS ........................... $ 0 $ 0 $ 1,004,465
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
111
WELLS FARGO STOCK FUNDS STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED DIVERSIFIED EQUITY EQUITY
EQUITY SMALL CAP INCOME INDEX
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .......................................... $ 10,826,274 $ 1,389,592 $ 15,336,308 $ 3,405,563
INTEREST ............................................... 4,116 2,776 11,745 3,447
INCOME FROM AFFILIATED SECURITIES ...................... 0 0 0 103,838
SECURITIES LENDING INCOME .............................. 0 0 0 18,729
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ... (3,525,369) (1,044,962) (3,439,883) 0
------------- ----------- ------------ -----------
TOTAL INVESTMENT INCOME ................................... 7,305,021 347,406 11,908,170 3,531,577
------------- ----------- ------------ -----------
EXPENSES
ADVISORY FEES .......................................... 1,788,243 454,574 0 436,533
ADMINISTRATION FEES
FUND LEVEL .......................................... 357,649 90,915 310,058 100,965
CLASS A ............................................. 124,806 N/A 256,800 479,258
CLASS B ............................................. 136,443 N/A 139,158 86,147
CLASS C ............................................. 15,240 N/A 17,038 N/A
INSTITUTIONAL CLASS ................................. 1,233,102 363,660 945,237 N/A
CUSTODY FEES ........................................... 0 0 0 40,386
SHAREHOLDER SERVICING FEES ............................. 246,865 181,830 368,746 504,827
ACCOUNTING FEES ........................................ 50,798 20,391 45,373 21,537
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................. 365,471 N/A 372,744 230,752
CLASS C ............................................. 40,822 N/A 45,636 N/A
AUDIT FEES ............................................. 4,262 4,011 3,761 9,324
LEGAL FEES ............................................. 8,969 8,967 8,969 8,967
REGISTRATION FEES ...................................... 30,631 20,384 26,634 4,626
SHAREHOLDER REPORTS .................................... 112,245 8,846 99,499 32,655
TRUSTEES' FEES ......................................... 3,195 3,195 3,195 2,088
OTHER FEES AND EXPENSES ................................ 40,238 3,186 47,349 12,878
------------- ----------- ------------ -----------
TOTAL EXPENSES ............................................ 4,558,979 1,159,959 2,690,197 1,970,943
------------- ----------- ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ........... (275,531) (23,026) (107,948) (409,792)
NET EXPENSES ........................................... 4,283,448 1,136,933 2,582,249 1,561,151
------------- ----------- ------------ -----------
NET INVESTMENT INCOME (LOSS) .............................. 3,021,573 (789,527) 9,325,921 1,970,426
------------- ----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 0 0 0 5,901,854
FUTURES TRANSACTIONS ................................... 0 0 0 988,821
AFFILIATED SECURITIES .................................. 0 0 0 43,514
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER
PORTFOLIOS .......................................... 69,880,086 24,349,729 65,702,778 0
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 1,463,916 967,441 0 0
------------- ----------- ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................. 71,344,002 25,317,170 65,702,778 6,934,189
------------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 0 0 0 41,054,520
FUTURES TRANSACTIONS ................................... 0 0 0 252,538
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER
PORTFOLIOS .......................................... 117,855,186 35,305,656 118,079,420 0
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES
ALLOCATED FROM MASTER PORTFOLIOS .................... 4,556,280 566,073 0 0
------------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 122,411,466 35,871,729 118,079,420 41,307,058
============= =========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .... 193,755,468 61,188,899 183,782,198 48,241,247
------------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................. $ 196,777,041 $60,399,372 $193,108,119 $50,211,673
============= =========== ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ............. $ 200,550 $ 1,634 $ 68,123 $ 0
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
112
STATEMENT OF OPERATIONS -- WELLS FARGO STOCK FUNDS
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH INTERNATIONAL
GROWTH EQUITY INDEX EQUITY
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ........................................... $ 618,833 $ 2,583,556 $ 8,588,824 $ 2,458,839
INTEREST ............................................... 86 1,601 6,999 284
INCOME FROM AFFILIATED SECURITIES ...................... 12,318 0 0 36,592
SECURITIES LENDING INCOME .............................. 14,374 0 0 16,586
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ... 0 (1,896,450) (240,712) 0
----------- ----------- ------------ ------------
TOTAL INVESTMENT INCOME ................................... 645,611 688,707 8,355,111 2,512,301
----------- ----------- ------------ ------------
EXPENSES
ADVISORY FEES .......................................... 700,982 675,776 0 1,884,298
ADMINISTRATION FEES
FUND LEVEL .......................................... 46,732 135,155 245,335 94,215
CLASS A ............................................. 188,145 26,502 N/A 84,369
CLASS B ............................................. 14,880 20,831 N/A 26,851
CLASS C ............................................. N/A 4,854 N/A 4,071
INSTITUTIONAL CLASS ................................. 41,911 503,344 981,339 294,509
CUSTODY FEES ........................................... 18,693 0 0 188,430
SHAREHOLDER SERVICING FEES ............................. 181,272 46,596 0 102,938
ACCOUNTING FEES ........................................ 15,354 25,434 37,995 20,767
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................. 39,856 55,797 N/A 71,923
CLASS C ............................................. N/A 13,002 N/A 10,904
AUDIT FEES ............................................. 9,024 4,262 3,759 9,776
LEGAL FEES ............................................. 8,967 8,969 8,967 8,969
REGISTRATION FEES ...................................... 4,224 36,525 28,962 8,546
SHAREHOLDER REPORTS .................................... 30,168 37,636 51,052 13,077
TRUSTEES' FEES ......................................... 2,088 3,195 3,195 2,088
OTHER FEES AND EXPENSES ................................ 22,835 14,439 17,689 6,961
----------- ----------- ------------ ------------
TOTAL EXPENSES ............................................ 1,325,131 1,612,317 1,378,293 2,832,692
----------- ----------- ------------ ------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ........... (169,359) (30,851) (392,328) (290,357)
NET EXPENSES ........................................... 1,155,772 1,581,466 985,965 2,542,335
----------- ----------- ------------ -----------
NET INVESTMENT INCOME (LOSS) .............................. (510,161) (892,759) 7,369,146 (30,034)
----------- ----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 13,938,000 0 0 9,785,313
FUTURES TRANSACTIONS ................................... 0 0 0 0
AFFILIATED SECURITIES .................................. 0 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER
PORTFOLIOS .......................................... 0 39,590,532 4,054,044 0
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 0 556,261 728,454 0
----------- ----------- ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................. 13,938,000 40,146,793 4,782,498 9,785,313
----------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 7,549,180 0 0 50,369,210
FUTURES TRANSACTIONS ................................... 0 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER
PORTFOLIOS .......................................... 0 36,761,836 107,102,601 0
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES
ALLOCATED FROM MASTER PORTFOLIOS .................... 0 254,435 203,513 0
----------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 7,549,180 37,016,271 107,306,114 50,369,210
=========== =========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .... 21,487,180 77,163,064 112,088,612 60,154,523
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................. $20,977,019 $76,270,305 $119,457,758 $60,124,489
=========== =========== ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ............. $ 3,099 $ 138,914 $ 0 $ 300,351
LARGE CAP LARGE CAP LARGE COMPANY
APPRECIATION VALUE GROWTH
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .......................................... $ 124,566 $ 7,165 $ 8,998,190
INTEREST ............................................... 9 0 1,124
INCOME FROM AFFILIATED SECURITIES ...................... 0 0 0
SECURITIES LENDING INCOME .............................. 0 0 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ... (61,907) (2,300) (9,056,535)
---------- -------- ------------
TOTAL INVESTMENT INCOME ................................... 62,668 4,865 (57,221)
---------- -------- ------------
EXPENSES
ADVISORY FEES .......................................... 0 0 0
ADMINISTRATION FEES
FUND LEVEL .......................................... 5,583 212 678,295
CLASS A ............................................. 2,273 755 562,828
CLASS B ............................................. 2,205 327 365,360
CLASS C ............................................. 834 70 61,685
INSTITUTIONAL CLASS ................................. 18,537 24 2,006,129
CUSTODY FEES ........................................... 0 0 0
SHAREHOLDER SERVICING FEES ............................. 4,743 1,029 883,815
ACCOUNTING FEES ........................................ 10,663 19,076 87,352
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................. 5,906 877 978,643
CLASS C ............................................. 2,235 188 165,227
AUDIT FEES ............................................. 6,517 3,459 3,761
LEGAL FEES ............................................. 8,567 8,969 8,969
REGISTRATION FEES ...................................... 300 21,016 156,425
SHAREHOLDER REPORTS .................................... 100 4,693 115,826
TRUSTEES' FEES ......................................... 3,195 3,009 3,195
OTHER FEES AND EXPENSES ................................ 1,354 1,354 42,264
---------- -------- ------------
TOTAL EXPENSES ............................................ 73,012 65,058 6,119,774
---------- -------- ------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ........... (10,377) (61,029) (312,602)
NET EXPENSES ........................................... 62,635 4,029 5,807,172
---------- -------- ------------
NET INVESTMENT INCOME (LOSS) .............................. 33 836 (5,864,393)
---------- --------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 0 0 0
FUTURES TRANSACTIONS ................................... 0 0 0
AFFILIATED SECURITIES .................................. 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER
PORTFOLIOS .......................................... 1,765,158 (16,729) 21,045,631
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS .. 0 0 0
---------- -------- ------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................. 1,765,158 (16,729) 21,045,631
---------- -------- ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 0 0 0
FUTURES TRANSACTIONS ................................... 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER
PORTFOLIOS .......................................... 828,910 77,559 184,767,661
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES
ALLOCATED FROM MASTER PORTFOLIOS .................... 0 0 0
---------- -------- ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 828,910 77,559 184,767,661
========== ======== ============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .... 2,594,068 60,830 205,813,292
---------- -------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................. $2,594,101 $ 61,666 $199,948,899
========== ======== ============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ............. $ 163 $ 0 $ 285,106
113
WELLS FARGO STOCK FUNDS STATEMENT OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MONTGOMERY
MONTGOMERY INSTITUTIONAL MONTGOMERY
EMERGING EMERGING MID CAP MONTGOMERY
MARKETS FOCUS MARKETS GROWTH SMALL CAP
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .................................................. $ 1,377,041 $ 1,041,065 $ 278,283 $ 120,911
INTEREST ....................................................... 3,495 1,226 30 28
INCOME FROM AFFILIATED SECURITIES .............................. 77,635 8,233 12,591 6,869
SECURITIES LENDING INCOME ...................................... 22,566 8,865 17,304 16,123
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ........... 0 0 0 0
----------- ----------- ----------- -----------
TOTAL INVESTMENT INCOME ........................................... 1,480,737 1,059,389 308,208 143,931
----------- ----------- ----------- -----------
EXPENSES
ADVISORY FEES .................................................. 1,082,515 531,823 379,795 439,268
ADMINISTRATION FEES
FUND LEVEL .................................................. 49,205 24,174 25,320 24,404
CLASS A ..................................................... 212,088 N/A 132,067 132,515
CLASS B ..................................................... 1,746 N/A 8,609 527
CLASS C ..................................................... 2,572 N/A 1,114 187
SELECT CLASS ................................................ N/A 48,347 N/A N/A
INSTITUTIONAL CLASS ......................................... 42,245 N/A N/A 2,452
CUSTODY FEES ................................................... 246,026 121,533 10,128 9,761
SHAREHOLDER SERVICING FEES ..................................... 193,220 0 126,598 120,180
ACCOUNTING FEES ................................................ 24,662 12,782 12,913 21,834
DISTRIBUTION FEES (NOTE 3)
CLASS B ..................................................... 4,677 N/A 23,059 1,411
CLASS C ..................................................... 6,891 N/A 2,984 501
AUDIT FEES ..................................................... 9,776 9,776 4,513 8,773
LEGAL FEES ..................................................... 8,969 8,969 8,969 8,969
REGISTRATION FEES .............................................. 7,521 7,521 1,208 7,521
SHAREHOLDER REPORTS ............................................ 20,055 11,029 721 9,525
TRUSTEES' FEES ................................................. 2,088 2,088 2,088 2,088
OTHER FEES AND EXPENSES ........................................ 7,614 2,790 366 1,755
----------- ----------- ----------- -----------
TOTAL EXPENSES .................................................... 1,921,870 780,832 740,452 791,671
----------- ----------- ----------- -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ................... (105,706) (175,453) 0 (108,905
NET EXPENSES ................................................... 1,816,164 605,379 740,452 682,766
----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) ...................................... (335,427) 454,010 (432,244) (538,835
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ................................................. 33,803,981 12,631,192 16,535,157 13,264,613
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ........... 0 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ....... 0 0 0 0
----------- ----------- ----------- -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 33,803,981 12,631,192 16,535,157 13,264,613
----------- ----------- ----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ................................................. 4,002,730 11,471,444 2,389,206 8,042,469
FORWARD FOREIGN CURRENCY CONTRACTS ............................. 41,907 242,080 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ........... 0 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ....... 0 0 0 0
----------- ----------- ----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS 4,044,637 11,713,524 2,389,206 8,042,469
=========== =========== =========== ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 37,848,618 24,344,716 18,924,363 21,307,082
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $37,513,191 $24,798,726 $18,492,119 $20,768,247
=========== =========== =========== ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................ $ 226,470 $ 162,526 $ 0 $ 433
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
114
STATEMENT OF OPERATIONS -- WELLS FARGO STOCK FUNDS
FOR THE SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SIFE
SPECIALIZED SMALL SMALL SMALL
FINANCIAL CAP CAP COMPANY
SERVICES GROWTH OPPORTUNITIES GROWTH
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .................................................. $ 5,972,835 $ 214,132 $ 1,886,193 $ 546,839
INTEREST ....................................................... 115,240 74 284 208
INCOME FROM AFFILIATED SECURITIES .............................. 0 10,188 192,829 0
SECURITIES LENDING INCOME ...................................... 15,891 29,763 51,272 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ........... 0 0 0 (2,077,619)
------------ ----------- ----------- -----------
TOTAL INVESTMENT INCOME ........................................... 6,103,966 254,157 2,130,578 (1,530,572)
------------ ----------- ----------- -----------
EXPENSES
ADVISORY FEES .................................................. 2,652,295 727,025 2,028,407 0
ADMINISTRATION FEES
FUND LEVEL .................................................. 139,594 40,390 112,689 125,612
CLASS A ..................................................... 752,223 91,231 N/A 28
CLASS B ..................................................... 26,531 40,997 N/A 8
CLASS C ..................................................... 2,975 15,240 N/A 8
SELECT CLASS ................................................ N/A N/A N/A N/A
INSTITUTIONAL CLASS ......................................... N/A 56,227 450,757 502,417
CUSTODY FEES ................................................... 55,838 16,156 45,076 0
SHAREHOLDER SERVICING FEES ..................................... 697,972 159,781 225,378 251,249
ACCOUNTING FEES ................................................ 25,940 14,631 22,873 24,346
DISTRIBUTION FEES (NOTE 3)
CLASS B ..................................................... 71,064 109,813 N/A 22
CLASS C ..................................................... 7,969 40,820 N/A 21
AUDIT FEES ..................................................... 12,536 8,775 8,773 3,761
LEGAL FEES ..................................................... 8,969 8,967 8,967 8,969
REGISTRATION FEES .............................................. 37,603 14,345 2,988 1,932
SHAREHOLDER REPORTS ............................................ 75,206 20,333 18,031 31,033
TRUSTEES' FEES ................................................. 2,586 2,088 2,088 3,195
OTHER FEES AND EXPENSES ........................................ 45,214 9,869 6,852 13,028
------------ ----------- ----------- -----------
TOTAL EXPENSES .................................................... 4,614,515 1,376,688 2,932,879 965,629
------------ ----------- ----------- -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ................... (766,337) (124,797) (228,337) (28,472)
NET EXPENSES ................................................... 3,848,178 1,251,891 2,704,542 937,157
------------ ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) ...................................... 2,255,788 (997,734) (573,964) (2,467,729)
------------ ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ................................................. 48,532,310 29,288,759 49,602,082 58,217
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ........... (526,869) 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ....... 0 0 0 72,424,923
------------ ------------ ----------- -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 48,005,441 29,288,759 49,602,082 72,483,140
------------ ------------ ----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ................................................. 28,116,391 7,507,599 36,555,849 0
FORWARD FOREIGN CURRENCY CONTRACTS ............................. 0 0 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ........... (197,066) 0 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ....... 0 0 0 10,398,009
------------ ------------ ----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .................................................... 27,919,325 7,507,599 36,555,849 10,398,009
============ ============ =========== ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 75,924,766 36,796,358 86,157,931 82,881,149
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $ 78,180,554 $ 35,798,624 $85,583,967 $80,413,420
============ ============ =========== ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................ $ 0 $ 1,017 $ 2,042 $ 6,887
SMALL SPECIALIZED
COMPANY HEALTH SPECIALIZED
VALUE SCIENCES TECHNOLOGY
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .................................................. $ 399,550 $ 82,515 $ 59,711
INTEREST ....................................................... 27 14 771
INCOME FROM AFFILIATED SECURITIES .............................. 0 3,927 57,990
SECURITIES LENDING INCOME ...................................... 0 1,018 51,188
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ........... (259,895) 0 0
----------- ---------- -----------
TOTAL INVESTMENT INCOME ........................................... 139,682 87,474 169,660
----------- ---------- -----------
EXPENSES
ADVISORY FEES .................................................. 0 159,799 846,945
ADMINISTRATION FEES
FUND LEVEL .................................................. 17,232 8,410 40,331
CLASS A ..................................................... 19,828 18,585 167,512
CLASS B ..................................................... 13,009 25,095 48,145
CLASS C ..................................................... 2,855 3,419 10,195
SELECT CLASS ................................................ N/A N/A N/A
INSTITUTIONAL CLASS ......................................... 43,433 N/A N/A
CUSTODY FEES ................................................... 0 11,775 56,463
SHAREHOLDER SERVICING FEES ..................................... 53,585 42,052 201,654
ACCOUNTING FEES ................................................ 11,991 10,985 14,624
DISTRIBUTION FEES (NOTE 3)
CLASS B ..................................................... 34,847 67,218 128,958
CLASS C ..................................................... 7,648 9,157 27,309
AUDIT FEES ..................................................... 8,524 4,513 7,521
LEGAL FEES ..................................................... 8,969 8,969 8,967
REGISTRATION FEES .............................................. 90,521 10,561 27,783
SHAREHOLDER REPORTS ............................................ 752 1,290 5,841
TRUSTEES' FEES ................................................. 3,195 2,088 2,088
OTHER FEES AND EXPENSES ........................................ 2,908 2,020 1,652
----------- ---------- -----------
TOTAL EXPENSES .................................................... 319,297 385,936 1,595,988
----------- ---------- -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ................... (91,859) (32,016) (28,188)
NET EXPENSES ................................................... 227,438 353,920 1,567,800
----------- ---------- -----------
NET INVESTMENT INCOME (LOSS) ...................................... (87,756) (266,446) (1,398,140)
----------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ................................................. 0 3,722,269 22,963,062
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ........... 0 (122,979) (1,521,345)
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ....... 2,888,140 0 0
----------- ---------- -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................... 2,888,140 3,599,290 21,441,717
----------- ---------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ................................................. 0 1,034,308 (2,551,629)
FORWARD FOREIGN CURRENCY CONTRACTS ............................. 0 0 (1,236)
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ........... 0 0 (411,565)
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ....... 9,039,090 0 0
----------- ---------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .................................................... 9,039,090 1,034,308 (2,964,430)
=========== ========== ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............ 11,927,230 4,633,598 18,477,287
----------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ... $11,839,474 $4,367,152 $17,079,147
=========== ========== ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................ $ 0 $ 161 $ 1,971
115
WELLS FARGO STOCK FUNDS STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $1,330,747,695 $1,164,638,682
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... 3,021,573 7,168,483
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 71,344,002 22,318,010
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 122,411,466 231,042,105
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 196,777,041 260,528,598
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... (578,321) (209,237)
CLASS B ........................................................... 0 0
CLASS C ........................................................... (9,113) 0
CLASS O ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... (10,528,516) (7,013,682)
SELECT CLASS ...................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... 0 0
CLASS B ........................................................... 0 0
CLASS C ........................................................... 0 0
CLASS O ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. 16,602,033 18,321,626
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 563,843 205,208
COST OF SHARES REDEEMED - CLASS A .................................... (6,712,252) (13,092,727)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ................................. 10,453,624 5,434,107
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. 4,791,181 9,387,186
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 0 0
COST OF SHARES REDEEMED - CLASS B .................................... (13,983,680) (19,991,943)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ................................. (9,192,499) (10,604,757)
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................................... 2,023,865 3,393,955
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................................. 8,799 0
COST OF SHARES REDEEMED - CLASS C ....................................... (1,219,059) (2,197,062)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ................................. 813,605 1,196,893
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS O .................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS O .............................. N/A N/A
COST OF SHARES REDEEMED - CLASS O .................................... N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS O ................................. N/A N/A
-------------- --------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ...................... 44,281,690 124,266,578
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. 9,771,273 6,469,293
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................ (117,437,880) (213,958,780)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ..................... (63,384,917) (83,222,909)
-------------- --------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ......................... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ............................... N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............................ N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................... (61,310,187) (87,196,666)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 124,350,904 166,109,013
============== ==============
NET ASSETS:
- ---------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ....................................................... $1,455,098,599 $1,330,747,695
-------------- --------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ................... $ 1,017,528 $ 9,111,905
============== ==============
(1) "PROCEEDS FROM SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. SEE
NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
116
STATEMENT OF CHANGES IN NET ASSETS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DIVERSIFIED SMALL CAP FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
---------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $285,649,964 $192,986,629
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... (789,527) (290,409)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 25,317,170 14,613,951
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 35,871,729 49,198,855
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 60,399,372 63,522,397
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... N/A N/A
CLASS B ........................................................... N/A N/A
CLASS C ........................................................... N/A N/A
CLASS O ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... (10) 0
SELECT CLASS ...................................................... N/A N/A
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
CLASS O ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... (2,149,504) (1,852,831)
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 DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 - CLASS O .................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS O .............................. N/A N/A
COST OF SHARES REDEEMED - CLASS O .................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS O ................................. N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ...................... 109,907,320 76,987,872
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. 1,848,585 1,600,367
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................ (27,767,778) (47,594,470)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ..................... 83,988,127 30,993,769
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ......................... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ............................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............................ N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................... 83,988,127 30,993,769
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 142,237,985 92,663,335
============ ============
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ....................................................... $427,887,949 $285,649,964
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ................... $ (832,271) $ (42,734)
============ ============
EQUITY INCOME FUND
---------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003(1)
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $1,179,002,933 $1,125,839,620
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... 9,325,921 19,495,371
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 65,702,778 46,816,869
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 118,079,420 145,690,087
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 193,108,119 212,002,327
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... (1,229,314) (2,173,423)
CLASS B ........................................................... (285,152) (663,457)
CLASS C ........................................................... (35,985) (69,683)
CLASS O ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... (7,620,812) (16,632,900)
SELECT CLASS ...................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... (7,360,998) (10,502,226)
CLASS B ........................................................... (4,069,787) (7,352,730)
CLASS C ........................................................... (473,511) (625,145)
CLASS O ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... (39,639,161) (73,205,481)
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. 32,557,861 47,218,312
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 8,170,874 11,827,300
COST OF SHARES REDEEMED - CLASS A .................................... (30,901,480) (32,400,307)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ................................. 9,827,255 26,645,305
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. 3,516,664 30,058,852
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 4,192,974 7,681,692
COST OF SHARES REDEEMED - CLASS B .................................... (21,725,351) (37,198,248)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ................................. (14,015,713) 542,296
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................. 1,878,718 4,253,249
REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 490,275 657,788
COST OF SHARES REDEEMED - CLASS C .................................... (1,341,158) (2,330,249)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ................................. 1,027,835 2,580,788
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS O .................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS O .............................. N/A N/A
COST OF SHARES REDEEMED - CLASS O .................................... N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS O ................................. N/A N/A
-------------- --------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ...................... 53,541,283 166,189,701
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. 26,173,973 50,698,858
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................ (154,648,470) (294,270,917)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ..................... (74,933,214) (77,382,358)
-------------- --------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ......................... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ............................... N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............................ N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................... (78,093,837) 47,613,969
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 54,299,562 53,163,313
============== ==============
NET ASSETS:
- ----------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ....................................................... $1,233,302,495 $1,179,002,933
-------------- --------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ................... $ 943,233 $ 788,575
============== ==============
EQUITY INDEX FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- -----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................... $370,479,206 $322,511,386
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................ 1,970,426 3,584,092
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................. 6,934,189 10,421,006
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 41,307,058 58,577,571
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 50,211,673 72,582,669
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... (3,594,139) (3,707,511)
CLASS B ........................................................... (238,636) (157,638)
CLASS C ........................................................... N/A N/A
CLASS O ........................................................... N/A (631)
INSTITUTIONAL CLASS ............................................... N/A N/A
SELECT CLASS ...................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... (9,179,058) (12,124,471)
CLASS B ........................................................... (1,662,278) (2,231,497)
CLASS C ........................................................... N/A N/A
CLASS O ........................................................... N/A (8,619)
INSTITUTIONAL CLASS ............................................... N/A N/A
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. 15,503,054 14,090,850
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 12,579,568 15,645,186
COST OF SHARES REDEEMED - CLASS A .................................... (20,976,625) (34,209,136)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ................................. 7,105,997 (4,473,100)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. 3,522,688 8,096,101
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 1,799,806 2,283,388
COST OF SHARES REDEEMED - CLASS B .................................... (7,455,962) (12,037,100)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ................................. (2,133,468) (1,657,611)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - 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 - CLASS O .................................. N/A 127
REINVESTMENT OF DISTRIBUTIONS - CLASS O .............................. N/A 8,636
COST OF SHARES REDEEMED - CLASS O .................................... N/A (262,534)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS O ................................. N/A (253,771)
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ...................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................ N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ..................... N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ......................... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ............................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............................ N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ........................................... 4,972,529 (6,130,711)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 40,510,091 47,967,820
============ ============
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ....................................................... $410,989,297 $370,479,206
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ................... $ 744,636 $ 2,606,985
============ ============
117
WELLS FARGO STOCK FUNDS STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GROWTH FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- -----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS................................. $182,181,653 $208,625,141
OPERATIONS:
NET INVESTMENT INCOME (LOSS)......................... (510,161) (943,534)
NET REALIZED GAIN (LOSS) ON INVESTMENTS.............. 13,938,000 (1,059,936)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS.................................... 7,549,180 25,606,291
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................... 20,977,019 23,602,821
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A........................................... 0 0
CLASS B........................................... 0 0
CLASS C........................................... N/A N/A
CLASS O........................................... N/A N/A
INSTITUTIONAL CLASS............................... 0 0
SELECT CLASS...................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .......................................... 0 0
CLASS B .......................................... 0 0
CLASS C........................................... N/A N/A
CLASS O........................................... N/A N/A
INSTITUTIONAL CLASS............................... 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A.................. 10,502,209 15,673,836
REINVESTMENT OF DISTRIBUTIONS - CLASS A.............. 0 0
COST OF SHARES REDEEMED - CLASS A.................... (16,988,073) (26,484,577)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A................. (6,485,864) (10,810,741)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B.................. 361,824 852,259
REINVESTMENT OF DISTRIBUTIONS - CLASS B.............. 0 0
COST OF SHARES REDEEMED - CLASS B.................... (4,063,227) (10,790,321)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B................. (3,701,403) (9,938,062)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C.................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - 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...... 4,123,036 9,415,878
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS.. 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS........ (17,812,326) (38,713,384)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS..... (13,689,290) (29,297,506)
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS............. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS......... N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS............... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS............ N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS........................... (23,876,557) 50,046,309
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS................... (2,899,538) (26,443,488)
============ ============
NET ASSETS:
- --------------------------------------------------------------------------------------------
ENDING NET ASSETS....................................... $179,282,115 $182,181,653
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME... $ (510,161) $ 0
============ ============
(1) "PROCEEDS FROM SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. SEE
NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
118
STATEMENT OF CHANGES IN NET ASSETS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND INDEX FUND
------------------------------------ ------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 MARCH 31, 2004 SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS................................. $483,415,617 $390,546,114 $ 839,581,398 $ 596,168,161
OPERATIONS:
NET INVESTMENT INCOME (LOSS)......................... (892,759) (727,260) 7,369,146 11,391,816
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 40,146,793 (18,766,054) 4,782,498 (8,099,949)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS.................................... 37,016,271 120,329,563 107,306,114 147,069,297
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 76,270,305 100,836,249 119,457,758 150,361,164
------------ ------------ -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A........................................... 0 0 N/A N/A
CLASS B........................................... 0 0 N/A N/A
CLASS C........................................... 0 0 N/A N/A
CLASS O........................................... N/A N/A N/A N/A
INSTITUTIONAL CLASS............................... 0 (156,548) (12,191,997) (10,498,671)
SELECT CLASS...................................... N/A N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A........................................... 0 0 N/A N/A
CLASS B........................................... 0 0 N/A N/A
CLASS C........................................... 0 0 N/A N/A
CLASS O........................................... N/A N/A N/A N/A
INSTITUTIONAL CLASS............................... 0 0 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A.................. 5,109,862 5,156,641 N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A.............. 0 0 N/A N/A
COST OF SHARES REDEEMED - CLASS A.................... (2,277,402) (3,645,373) N/A N/A
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A................ 2,832,460 1,511,268 N/A N/A
------------ ------------ -------------- -------------
PROCEEDS FROM SHARES SOLD - CLASS B.................. 928,780 1,570,514 N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B.............. 0 0 N/A N/A
COST OF SHARES REDEEMED - CLASS B.................... (3,169,002) (3,998,298) N/A N/A
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B................. (2,240,222) (2,427,784) N/A N/A
------------ ------------ -------------- -------------
PROCEEDS FROM SHARES SOLD - CLASS C.................. 622,397 1,175,743 N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C.............. 0 0 N/A N/A
COST OF SHARES REDEEMED - CLASS C.................... (370,085) (425,663) N/A N/A
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C................. 252,312 750,080 N/A N/A
------------ ------------ -------------- -------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS...... 24,830,765 38,383,876 220,538,556 251,834,330
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS.. 0 154,256 10,206,039 8,555,382
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS........ (23,656,644) (46,181,894) (115,569,293) (156,838,968)
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS..... 1,174,121 (7,643,762) 115,175,302 103,550,744
------------ ------------ -------------- -------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS............. N/A N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS......... N/A N/A N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS............... N/A N/A N/A N/A
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS............ N/A N/A N/A N/A
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS........................... 2,018,671 (7,810,198) 115,175,302 103,550,744
------------ ------------ -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS................... 78,288,976 92,869,503 222,441,063 243,413,237
============ ============ ============== =============
NET ASSETS:
- ---------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS....................................... $561,704,593 $483,415,617 $1,062,022,461 $ 839,581,398
------------ ------------ -------------- -------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME... $ (1,664,037) $ (771,278) $ 3,569,465 $ 8,392,316
============ ============ ============== =============
INTERNATIONAL EQUITY FUND
------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS................................. $341,539,379 $ 426,459,648
OPERATIONS:
NET INVESTMENT INCOME (LOSS)......................... (30,034) 2,830,498
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 9,785,313 (87,859,034)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS.................................... 50,369,210 157,842,579
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... 60,124,489 72,814,043
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A........................................... (343,354) 0
CLASS B........................................... 0 0
CLASS C........................................... 0 0
CLASS O........................................... N/A N/A
INSTITUTIONAL CLASS............................... (2,172,125) (543,245)
SELECT CLASS...................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A........................................... 0 0
CLASS B........................................... 0 0
CLASS C........................................... 0 0
CLASS O........................................... N/A N/A
INSTITUTIONAL CLASS............................... 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A.................. 26,726,177 431,371,281
REINVESTMENT OF DISTRIBUTIONS - CLASS A.............. 308,442 0
COST OF SHARES REDEEMED - CLASS A.................... (27,531,637) (409,857,717)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A................ (497,018) 21,513,564
------------ -------------
PROCEEDS FROM SHARES SOLD - CLASS B.................. 1,135,254 1,354,116
REINVESTMENT OF DISTRIBUTIONS - CLASS B.............. 0 0
COST OF SHARES REDEEMED - CLASS B.................... (5,937,998) (14,273,970)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B................. (4,802,744) (12,919,854)
------------ -------------
PROCEEDS FROM SHARES SOLD - CLASS C.................. 2,140,243 3,225,158
REINVESTMENT OF DISTRIBUTIONS - CLASS C.............. 0 0
COST OF SHARES REDEEMED - CLASS C.................... (2,117,158) (3,232,342)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C................. 23,085 (7,184)
------------ -------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS...... 26,699,825 212,524,545
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS.. 1,215,234 404,002
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS........ (35,382,967) (378,706,140)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS..... (7,467,908) (165,777,593)
------------ -------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS............. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS......... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS............... N/A N/A
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS............ N/A N/A
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS........................... (12,744,585) 157,191,067
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS................... 44,864,425 (84,920,269)
============ =============
NET ASSETS:
- -------------------------------------------------------------------------------------------
ENDING NET ASSETS....................................... $386,403,804 $ 341,539,379
------------ -------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME... $ (643,137) $ 1,902,376
============ =============
119
WELLS FARGO STOCK FUNDS STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................. $19,886,345 $ 6,293,231
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................... 33 (9,964)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................... 1,765,158 (185,419)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ... 828,910 2,532,596
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... 2,594,101 2,337,213
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................ 0 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
CLASS O ............................................................ N/A N/A
INSTITUTIONAL CLASS ................................................ 0 0
SELECT CLASS ....................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................ 0 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
CLASS O ............................................................ N/A N/A
INSTITUTIONAL CLASS ................................................ 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................... 1,076,089 417,269
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 0 0
COST OF SHARES REDEEMED - CLASS A ..................................... (225,336) (445,297)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ................................................ 850,753 (28,028)
----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS B ................................... 167,270 377,835
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 0 0
COST OF SHARES REDEEMED - CLASS B ..................................... (211,181) (170,530)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ................................................ (43,911) 207,305
----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS C ................................... 145,489 334,626
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 0 0
COST OF SHARES REDEEMED - CLASS C ..................................... (12,054) (84,619)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ................................................ 133,435 250,007
----------- -----------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................... 1,911,583 12,957,469
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................... 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................... (2,328,885) (2,130,852)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS .................................... (417,302) 10,826,617
----------- -----------
PROCEEDS FROM SHARES SOLD - SELECT CLASS .............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS .......................... N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS ................................ N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS ........................................... N/A N/A
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... 522,975 11,255,901
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS .................................... 3,117,076 13,593,114
=========== ===========
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ........................................................ $23,003,421 $19,886,345
----------- -----------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .................... $ (7,509) $ (7,542)
=========== ===========
(1) "PROCEEDS FROM SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. SEE
NOTE 1.
(2) FUND COMMENCED OPERATIONS ON AUGUST 29, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
120
STATEMENT OF CHANGES IN NET ASSETS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
----------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003(2)
- --------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................. $ 135,376 $ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................... 836 (34)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................... (16,729) 31
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ... 77,559 (1,385)
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... 61,666 (1,388)
---------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................ (215) 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
CLASS O ............................................................ N/A N/A
INSTITUTIONAL CLASS ................................................ (8) 0
SELECT CLASS ....................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................ 0 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
CLASS O ............................................................ N/A N/A
INSTITUTIONAL CLASS ................................................ 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................... 1,199,152 76,718
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 212 0
COST OF SHARES REDEEMED - CLASS A ..................................... (115,936) 0
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ................................................ 1,083,428 76,718
---------- --------
PROCEEDS FROM SHARES SOLD - CLASS B ................................... 483,085 37,938
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 0 0
COST OF SHARES REDEEMED - CLASS B ..................................... (18,659) 0
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ................................................ 464,426 37,938
---------- --------
PROCEEDS FROM SHARES SOLD - CLASS C ................................... 190,289 12,108
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 0 0
COST OF SHARES REDEEMED - CLASS C ..................................... (940) 0
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ................................................ 189,349 12,108
---------- --------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................... 137,464 10,000
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................... 8 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................... 0 0
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS .................................... 137,472 10,000
---------- --------
PROCEEDS FROM SHARES SOLD - SELECT CLASS .............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS .......................... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ................................ N/A N/A
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS ........................................... N/A N/A
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... 1,874,675 136,764
---------- --------
NET INCREASE (DECREASE) IN NET ASSETS .................................... 1,936,118 135,376
========== ========
NET ASSETS:
- ---------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ........................................................ $2,071,494 $135,376
---------- --------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .................... $ 579 $ (34)
========== ========
LARGE COMPANY GROWTH FUND
----------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003(1)
- --------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................. $2,413,164,172 $1,425,983,217
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................... (5,864,393) (11,532,624)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................... 21,045,631 (77,457,976)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ... 184,767,661 525,116,828
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... 199,948,899 436,126,228
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................ 0 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
CLASS O ............................................................ N/A N/A
INSTITUTIONAL CLASS ................................................ 0 0
SELECT CLASS ....................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................ 0 0
CLASS B ............................................................ 0 0
CLASS C ............................................................ 0 0
CLASS O ............................................................ N/A N/A
INSTITUTIONAL CLASS ................................................ 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................... 86,832,898 243,079,558
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 0 0
COST OF SHARES REDEEMED - CLASS A ..................................... (58,245,970) (64,272,475)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ................................................ 28,586,928 178,807,083
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................... 10,338,294 18,306,479
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 0 0
COST OF SHARES REDEEMED - CLASS B ..................................... (21,141,310) (43,988,726)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ................................................ (10,803,016) (25,682,247)
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................... 6,145,615 13,962,547
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 0 0
COST OF SHARES REDEEMED - CLASS C ..................................... (5,913,294) (8,275,533)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ................................................ 232,321 5,687,014
-------------- --------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS 489,336,919 662,808,043
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................... 10,259 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................... (289,625,371) (270,565,166)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS .................................... 199,721,807 392,242,877
-------------- --------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS .............................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS .......................... N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ................................ N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS ........................................... N/A N/A
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... 217,738,040 551,054,727
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .................................... 417,686,939 987,180,955
============== ==============
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ........................................................ $2,830,851,111 $2,413,164,172
-------------- --------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .................... $ (11,441,184) $ (5,576,791)
============== ==============
MONTGOMERY EMERGING MARKETS FOCUS FUND
--------------------------------------------------------
(UNAUDITED)
FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 JUNE 30, 2003(1)
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................. $147,923,625 $131,382,015 $ 23,020,221
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ......................................... (335,427) 171,846 400,981
NET REALIZED GAIN (LOSS) ON INVESTMENTS .............................. 33,803,981 8,990,215 2,372,375
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 4,044,637 11,939,592 1,403,172
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... 37,513,191 21,101,653 4,176,528
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ........................................................... 0 0 (4)
CLASS B ........................................................... 0 0 (2)
CLASS C ........................................................... 0 0 0
CLASS O ........................................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... 0 0 (159,387)
SELECT CLASS ...................................................... N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ........................................................... 0 0 0
CLASS B ........................................................... 0 0 0
CLASS C ........................................................... 0 0 0
CLASS O ........................................................... N/A N/A N/A
INSTITUTIONAL CLASS ............................................... 0 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .................................. 33,998,402 2,205,813 111,337,738
REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 15 0 0
COST OF SHARES REDEEMED - CLASS A .................................... (12,723,779) (6,700,473) (8,683,100)
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ............................................... 21,274,638 (4,494,660) 102,654,638
------------ ------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .................................. 2,239,613 247,511 16,131
REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 0 0 0
COST OF SHARES REDEEMED - CLASS B .................................... (228,488) 0 (12)
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ............................................... 2,011,125 247,511 16,119
------------ ------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .................................. 2,489,331 435,667 58,416
REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 0 0 0
COST OF SHARES REDEEMED - CLASS C .................................... (153,989) (750) (11,855)
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ............................................... 2,335,342 434,917 46,561
------------ ------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS 25,557,149 2,625,473 7,979,792
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. 0 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........................ (7,331,744) (3,373,284) (6,352,451)
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ................................... 18,225,405 (747,811) 1,627,341
------------ ------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ............................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ......................... N/A N/A N/A
COST OF SHARES REDEEMED - SELECT CLASS ............................... N/A N/A N/A
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS .......................................... N/A N/A N/A
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS ......................................................... 43,846,510 (4,560,043) 104,344,659
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ................................... 81,359,701 16,541,610 108,361,794
============ ============ ============
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ....................................................... $229,283,326 $147,923,625 $131,382,015
------------ ------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ................... $ (367,488) $ (32,061) $ (105,232)
============ ============ ============
121
WELLS FARGO STOCK FUNDS STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND
-----------------------------------------------------
(UNAUDITED)
FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 JUNE 30, 2003
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................................. $ 82,432,357 $73,127,353 $66,510,546
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ..................................... 454,010 132,532 1,077,240
NET REALIZED GAIN (LOSS) ON INVESTMENTS .......................... 12,631,192 3,691,671 (1,557,578)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................... 11,713,524 6,808,921 5,729,564
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... 24,798,726 10,633,124 (5,249,226)
------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ....................................................... N/A N/A N/A
CLASS B ....................................................... N/A N/A N/A
CLASS C ....................................................... N/A N/A N/A
CLASS O ....................................................... N/A N/A N/A
INSTITUTIONAL CLASS ........................................... N/A N/A N/A
SELECT CLASS .................................................. (1,191,535) 0 (238,482)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ....................................................... N/A N/A N/A
CLASS B ....................................................... N/A N/A N/A
CLASS C ....................................................... N/A N/A N/A
CLASS O ....................................................... N/A N/A N/A
INSTITUTIONAL CLASS ........................................... N/A N/A N/A
SELECT CLASS .................................................. 0 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .............................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A .......................... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS A ................................ N/A N/A N/A
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ........................................... N/A N/A N/A
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS B .............................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B .......................... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS B ................................ N/A N/A N/A
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ........................................... N/A N/A N/A
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS C .............................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C .......................... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS C ................................ N/A N/A N/A
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ........................................... N/A N/A N/A
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS .................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .............. N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .................... N/A N/A N/A
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INSTITUTIONAL CLASS ......................... N/A N/A N/A
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ......................... 1,306,501 848,980 3,577,667
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ..................... 1,096,518 0 0
COST OF SHARES REEDEMED - SELECT CLASS ........................... (3,099,900) (2,177,100) (1,971,604)
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS ...................................... (696,881) (1,328,120) 1,606,063
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS ............................................... (696,881) (1,328,120) 1,606,063
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 22,910,310 9,305,004 (6,616,807)
============ =========== ===========
NET ASSETS:
- -----------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ................................................... $105,342,667 $82,432,357 $73,127,353
------------ ----------- -----------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............... $ 217,495 $ 955,020 $ 913,778
============ =========== ===========
(1) "PROCEEDS FROM SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. SEE
NOTE 1.
(2) IN CONNECTION WITH THE MERGER ON JUNE 9, 2003, THE FORMER MONTGOMERY SMALL
CAP FUND R SHARES WERE RE-DESIGNATED AS NEW WELLS FARGO MONTGOMERY A SHARES
AND THE FORMER MONTGOMERY SMALL CAP P SHARES WERE CONVERTED INTO NEWLY
DESIGNATED A SHARES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
122
STATEMENT OF CHANGES IN NET ASSETS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
MONTGOMERY MID CAP GROWTH FUND
---------------------------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 JUNE, 30, 2003(1)
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................................. $ 93,802,876 $90,411,433 $ 98,525,841
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ..................................... (432,244) (252,016) (502,366)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .......................... 16,535,157 7,176,386 (10,413,820)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................... 2,389,206 (993,046) (7,883,671)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... 18,492,119 5,931,324 (3,032,515)
------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ....................................................... 0 0 0
CLASS B ....................................................... 0 0 0
CLASS C ....................................................... 0 0 0
CLASS O ....................................................... N/A N/A N/A
INSTITUTIONAL CLASS ........................................... N/A N/A N/A
SELECT CLASS .................................................. N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ....................................................... 0 0 0
CLASS B ....................................................... 0 0 0
CLASS C ....................................................... 0 0 0
CLASS O ....................................................... N/A N/A N/A
INSTITUTIONAL CLASS ........................................... N/A N/A N/A
SELECT CLASS .................................................. N/A N/A N/A
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .............................. 3,331,455 827,365 6,259,254
REINVESTMENT OF DISTRIBUTIONS - CLASS A .......................... 657 0 0
COST OF SHARES REDEEMED - CLASS A ................................ (10,187,567) (4,383,569) (17,119,812)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ........................................... (6,855,455) (3,556,204) (10,860,558)
------------ ----------- ------------
PROCEEDS FROM SHARES SOLD - CLASS B .............................. 1,487,779 1,167,948 5,283,759
REINVESTMENT OF DISTRIBUTIONS - CLASS B .......................... 0 0 0
COST OF SHARES REDEEMED - CLASS B ................................ (794,749) (281,519) (60,239)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ........................................... 693,030 886,429 5,223,520
------------ ----------- ------------
PROCEEDS FROM SHARES SOLD - CLASS C .............................. 342,682 176,518 555,231
REINVESTMENT OF DISTRIBUTIONS - CLASS C .......................... 0 0 0
COST OF SHARES REDEEMED - CLASS C ................................ (107,941) (46,624) (86)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ........................................... 234,741 129,894 555,145
------------ ----------- ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS .................. N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .............. N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .................... N/A N/A N/A
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INSTITUTIONAL CLASS ......................... N/A N/A N/A
------------ ----------- ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ......................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ..................... N/A N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS ........................... N/A N/A N/A
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS ...................................... N/A N/A N/A
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS ............................................... (5,927,684) (2,539,881) (5,081,893)
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 12,564,435 3,391,443 (8,114,408)
============ =========== ============
NET ASSETS:
- -------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ................................................... $106,367,311 $93,802,876 $ 90,411,433
------------ ----------- ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............... $ (432,244) $ 0 $ 248,102
============ =========== ============
MONTGOMERY SMALL CAP FUND
--------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 JUNE 30, 2003(2)
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................................. $ 83,683,988 $52,946,780 $47,685,163
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ..................................... (538,835) (162,196) (437,920)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .......................... 13,264,613 5,636,689 (3,135,877)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ................................................... 8,042,469 (2,853,645) 6,109,905
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ..... 20,768,247 2,620,848 2,536,108
------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ....................................................... 0 0 0
CLASS B ....................................................... 0 0 0
CLASS C ....................................................... 0 0 0
CLASS O ....................................................... N/A N/A N/A
INSTITUTIONAL CLASS ........................................... 0 0 0
SELECT CLASS .................................................. N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ....................................................... 0 0 0
CLASS B ....................................................... 0 0 0
CLASS C ....................................................... 0 0 0
CLASS O ....................................................... N/A N/A N/A
INSTITUTIONAL CLASS ........................................... 0 0 0
SELECT CLASS .................................................. N/A N/A N/A
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .............................. 7,715,400 28,950,725 10,007,064
REINVESTMENT OF DISTRIBUTIONS - CLASS A .......................... 0 0 0
COST OF SHARES REDEEMED - CLASS A ................................ (8,560,934) (1,299,560) (7,337,133)
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A ........................................... (845,534) 27,651,165 2,669,931
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS B .............................. 419,432 90,070 30,400
REINVESTMENT OF DISTRIBUTIONS - CLASS B .......................... 0 0 0
COST OF SHARES REDEEMED - CLASS B ................................ (2,635) (8,044) 0
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B ........................................... 416,797 82,026 30,400
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - CLASS C .............................. 105,638 73,169 11,308
REINVESTMENT OF DISTRIBUTIONS - CLASS C .......................... 0 0 0
COST OF SHARES REDEEMED - CLASS C ................................ (300) 0 0
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS C ........................................... 105,338 73,169 11,308
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS .................. 3,378,969 310,000 13,870
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .............. 0 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .................... (376,927) 0 0
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - INSTITUTIONAL CLASS ......................... 3,002,042 310,000 13,870
------------ ----------- -----------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ......................... N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ..................... N/A N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS ........................... N/A N/A N/A
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SELECT CLASS ...................................... N/A N/A N/A
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS ............................................... 2,678,643 28,116,360 2,725,509
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ............................... 23,446,890 30,737,208 5,261,617
============ =========== ===========
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ................................................... $107,130,878 $83,683,988 $52,946,780
------------ ----------- -----------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............... $ (538,835) $ 0 $ 0
============ =========== ===========
123
WELLS FARGO STOCK FUNDS STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIFE SPECIALIZED
FINANCIAL SERVICES FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................... $534,868,373 $532,392,626
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................ 2,255,788 4,065,102
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................. 48,005,441 94,884,755
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .......................................... 27,919,325 (22,824,026)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. 78,180,554 76,125,831
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................. (2,075,979) (5,448,631)
CLASS B .............................................. 0 (116,361)
CLASS C .............................................. (663) (10,154)
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. N/A N/A
SELECT CLASS ......................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................. (97,627,103) 0
CLASS B .............................................. (3,561,855) 0
CLASS C .............................................. (390,033) 0
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. N/A N/A
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ..................... 17,710,385 15,454,953
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................. 87,376,650 4,897,868
COST OF SHARES REDEEMED - CLASS A ....................... (55,415,859) (85,012,947)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .................... 49,671,176 (64,660,126)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B ..................... 659,172 1,537,842
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................. 3,261,292 108,554
COST OF SHARES REDEEMED - CLASS B ....................... (6,998,151) (4,965,932)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .................... (3,077,687) (3,319,536)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................... 267,846 340,369
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................. 328,271 8,595
COST OF SHARES REDEEMED - CLASS C ....................... (210,364) (444,240)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .................... 385,753 (95,276)
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ......... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ..... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ........ N/A N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ................ N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ............ N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS .................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .............................. 46,979,242 (68,074,938)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ...................... 21,504,163 2,475,747
============ ============
NET ASSETS:
- ----------------------------------------------------------------------------------------------------
ENDING NET ASSETS .......................................... $556,372,536 $534,868,373
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ...... $ 179,146 $ 0
============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
124
STATEMENT OF CHANGES IN NET ASSETS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................... $147,490,363 $178,323,663
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................ (997,734) (1,898,756)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................. 29,288,759 3,138,533
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .......................................... 7,507,599 46,413,812
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. 35,798,624 47,653,589
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................. 0 0
CLASS B .............................................. 0 0
CLASS C .............................................. 0 0
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. 0 0
SELECT CLASS ......................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................. 0 0
CLASS B .............................................. 0 0
CLASS C .............................................. 0 0
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ..................... 11,347,931 22,972,709
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................. 0 0
COST OF SHARES REDEEMED - CLASS A ....................... (11,261,119) (63,604,124)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .................... 86,812 (40,631,415)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B ..................... 1,075,495 1,912,034
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................. 0 0
COST OF SHARES REDEEMED - CLASS B ....................... (6,494,038) (10,041,967)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .................... (5,418,543) (8,129,933)
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................... 1,675,550 1,957,567
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................. 0 0
COST OF SHARES REDEEMED - CLASS C ....................... (1,898,213) (2,752,409)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .................... (222,663) (794,842)
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ......... 10,251,216 15,604,131
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ..... 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........... (21,495,260) (44,534,830)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ........ (11,244,044) (28,930,699)
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ................ N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ............ N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS .................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .............................. (16,798,438) 78,486,889
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ...................... 19,000,186 (30,833,300)
============ ============
NET ASSETS:
- ----------------------------------------------------------------------------------------------------
ENDING NET ASSETS .......................................... $166,490,549 $147,490,363
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ...... $ (997,734) $ 0
============ ============
SMALL CAP OPPORTUNITIES FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................... $381,786,103 $294,880,174
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................ (573,964) (1,803,596)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................. 49,602,082 7,563,082
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .......................................... 36,555,849 73,294,042
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. 85,583,967 79,053,528
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................. N/A N/A
CLASS B .............................................. N/A N/A
CLASS C .............................................. N/A N/A
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. 0 (17,033,555)
SELECT CLASS ......................................... N/A N/A
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
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. (13,757,861) 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 DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 ......... 63,953,567 68,547,285
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ..... 12,814,552 15,543,519
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........... (35,589,867) (59,204,848)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ........ 41,178,252 24,885,956
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ................ N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ............ N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS .................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .............................. 41,178,252 24,885,956
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ...................... 113,004,358 86,905,929
============ ============
NET ASSETS:
- ----------------------------------------------------------------------------------------------------
ENDING NET ASSETS .......................................... $494,790,461 $381,786,103
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ...... $ (573,964) $ 0
============ ============
SMALL COMPANY GROWTH FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................... $432,327,842 $329,964,033
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................ (2,467,729) (2,285,499)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................. 72,483,140 35,804,510
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS .......................................... 10,398,009 81,571,912
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ......................................... 80,413,420 115,090,923
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .............................................. 0 N/A
CLASS B .............................................. 0 N/A
CLASS C .............................................. 0 N/A
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. 0 0
SELECT CLASS ......................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .............................................. 0 N/A
CLASS B .............................................. 0 N/A
CLASS C .............................................. 0 N/A
CLASS O .............................................. N/A N/A
INSTITUTIONAL CLASS .................................. 0 0
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ..................... 114,539 N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A ................. 0 N/A
COST OF SHARES REDEEMED - CLASS A ....................... (10,000) N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A .................... 104,539 0
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B ..................... 35,942 N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B ................. 0 N/A
COST OF SHARES REDEEMED - CLASS B ....................... (10,000) N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B .................... 25,942 N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C ..................... 35,000 N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C ................. 0 N/A
COST OF SHARES REDEEMED - CLASS C ....................... (10,000) N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .................... 25,000 N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ......... 43,276,729 51,811,906
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ..... 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ........... (34,315,175) (64,539,020)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ........ 8,961,554 (12,727,114)
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ................ N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ............ N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS .................. N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SELECT CLASS ............... N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .............................. 9,117,035 (12,727,114)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ...................... 89,530,455 102,363,809
============ ============
NET ASSETS:
- ----------------------------------------------------------------------------------------------------
ENDING NET ASSETS .......................................... $521,858,297 $432,327,842
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ...... $ (2,935,282) $ (467,553)
============ ============
125
WELLS FARGO STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE FUND
-------------------------------------
(UNAUDITED)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- --------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................. $ 51,381,646 $ 14,660,609
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................... (87,756) 3,861
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............... 2,888,140 3,042,759
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS ...................... 9,039,090 7,856,591
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... 11,839,474 10,903,211
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................ 0 0
CLASS B ............................................ 0 0
CLASS C ............................................ 0 0
CLASS O ............................................ N/A N/A
INSTITUTIONAL CLASS ................................ (6,676) 0
SELECT CLASS ....................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................ (489,154) (2,715)
CLASS B ............................................ (345,335) (2,807)
CLASS C ............................................ (72,713) (95)
CLASS O ............................................ N/A N/A
INSTITUTIONAL CLASS ................................ (1,538,455) (6,171)
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................... 12,004,295 6,131,380
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............... 480,131 2,605
COST OF SHARES REDEEMED - CLASS A ..................... (2,238,709) (3,521,501)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A ............. 10,245,717 2,612,484
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B ................... 2,812,917 2,300,337
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............... 338,265 2,750
COST OF SHARES REDEEMED - CLASS B ..................... (1,299,268) (1,375,516)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B ............. 1,851,914 927,571
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C ................... 1,010,492 1,272,391
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............... 71,379 94
COST OF SHARES REDEEMED - CLASS C ..................... (309,076) (55,339)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C .................. 772,795 1,217,146
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....... 18,271,532 29,648,066
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ... 1,464,701 5,734
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......... (7,865,383) (8,581,387)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL
CLASS ................................................. 11,870,850 21,072,413
------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS .............. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS .......... N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS ................ N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - SELECT CLASS ........ N/A N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS ............................ 24,741,276 25,829,614
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... 34,128,417 36,721,037
============ ============
NET ASSETS:
- -----------------------------------------------------------------------------------------------
ENDING NET ASSETS $ 85,510,063 $ 51,381,646
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME ................................................ $ (99,283) $ (4,851)
============ ============
(1) "PROCEEDS FROM SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. SEE
NOTE 1.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
126
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND SPECIALIZED TECHNOLOGY FUND
------------------------------------ ---------------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 MARCH 31, 2004 SEPTEMBER 30, 2003(1)
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ............................. $32,278,535 $29,843,974 $149,563,405 $ 38,803,179
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ..................... (266,446) (443,025) (1,398,140) (1,271,691)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .......... 3,599,290 (685,058) 21,441,717 21,685,900
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS ................. 1,034,308 6,718,432 (2,964,430) 21,079,283
NET INCREASE (DECREASE) IN NET ASSETS RESULTING ----------- ----------- ------------ ------------
FROM OPERATIONS .................................. 4,367,152 5,590,349 17,079,147 41,493,492
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ....................................... 0 0 0 0
CLASS B ....................................... 0 0 0 0
CLASS C ....................................... 0 0 0 0
CLASS O ....................................... N/A N/A N/A N/A
INSTITUTIONAL CLASS ........................... N/A N/A N/A N/A
SELECT CLASS .................................. N/A N/A N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ....................................... 0 0 0 0
CLASS B ....................................... 0 0 0 0
CLASS C ....................................... 0 0 0 0
CLASS O ....................................... N/A N/A N/A N/A
INSTITUTIONAL CLASS ........................... N/A N/A N/A N/A
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A .............. 1,401,214 1,964,692 10,441,224 89,617,750
REINVESTMENT OF DISTRIBUTIONS - CLASS A .......... 0 0 0 0
COST OF SHARES REDEEMED - CLASS A ................ (1,939,620) (3,645,501) (15,357,433) (16,580,186)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS A ........ (538,406) (1,680,809) (4,916,209) 73,037,564
----------- ----------- ------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B .............. 635,314 1,497,164 1,269,050 1,691,007
REINVESTMENT OF DISTRIBUTIONS - CLASS B .......... 0 0 0 0
COST OF SHARES REDEEMED - CLASS B ................ (1,547,505) (2,868,666) (2,933,054) (5,166,557)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS B ........ (912,191) (1,371,502) (1,664,004) (3,475,550)
----------- ----------- ------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C .............. 172,785 434,594 648,107 932,129
REINVESTMENT OF DISTRIBUTIONS - CLASS C .......... 0 0 0 0
COST OF SHARES REDEEMED - CLASS C ................ (260,501) (538,071) (1,891,259) (1,227,409)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - CLASS C ........ (87,716) (103,477) (1,243,152) (295,280)
----------- ----------- ------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS .. N/A N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL
CLASS ......................................... N/A N/A N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .... N/A N/A N/A N/A
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL
CLASS ............................................ N/A N/A N/A N/A
----------- ----------- ------------ ------------
PROCEEDS FROM SHARES SOLD - SELECT CLASS ......... N/A N/A N/A N/A
REINVESTMENT OF DISTRIBUTIONS - SELECT CLASS ..... N/A N/A N/A N/A
COST OF SHARES REEDEMED - SELECT CLASS ........... N/A N/A N/A N/A
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS - SELECT CLASS ... N/A N/A N/A N/A
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS .................. (1,538,313) (3,155,788) (7,823,365) 69,266,734
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ............... 2,828,839 2,434,561 9,255,782 110,760,226
=========== =========== ============ ============
NET ASSETS:
- --------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS $35,107,374 $32,278,535 $158,819,187 $149,563,405
----------- ----------- ------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME ........................................... $ (266,450) $ (4) $ (1,398,140) $ 0
=========== =========== ============ ============
127
WELLS FARGO STOCK 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
- -------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $35.61 0.06 5.25 (0.26) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $29.00 0.13 6.59 (0.11) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $36.33 0.09(7) (6.85) (0.15) (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $52.73 0.09 (11.70) (0.17) (4.62)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $48.01 0.16 7.39 (0.16) (2.67)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $48.25 0.07 (0.31) 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 ..................... $43.06 0.08 6.29 (0.20) (0.98)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $34.43 (0.18) 5.18 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $28.15 (0.19) 6.47 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $35.41 (0.20)(7) (6.64) 0.00 (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $51.70 (0.17) (11.50) 0.00 (4.62)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $47.33 (0.18) 7.22 0.00 (2.67)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $47.69 (0.04) (0.32) 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 ..................... $42.69 (0.11) 6.09 0.00 (0.98)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $34.90 (0.06) 5.12 (0.03) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $28.56 (0.05) 6.39 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $35.91 (0.20)(7) (6.73) 0.00 (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $52.36 (0.16) (11.67) 0.00 (4.62)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $47.90 (0.07) 7.20 0.00 (2.67)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $48.26 0.08 (0.44) 0.00 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 ............... $38.71 0.08 10.65 (0.20) (0.98)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $35.64 0.11 5.24 (0.33) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $29.04 0.24 6.57 (0.21) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $36.38 0.18(7) (6.87) (0.23) (0.42)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $52.72 0.15 (11.70) (0.17) (4.62)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $48.00 0.18 7.37 (0.16) (2.67)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $48.25 0.04 (0.29) 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 ..................... $43.06 0.22 6.15 (0.20) (0.98)
DIVERSIFIED SMALL CAP
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $11.32 (0.02) 2.26 0.00 (0.08)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $ 8.70 (0.01) 2.71 0.00 (0.08)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $ 9.18 (0.02) (0.34) 0.00 (0.12)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $11.18 0.01 (1.34) (0.01) (0.66)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $ 9.02 0.00 2.16 0.00 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $ 8.99 (0.01) 0.04 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 ..................... $10.52 0.00 (1.53) 0.00 0.00
EQUITY INCOME
- -------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $31.32 0.24 4.94 (0.23) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $28.74 0.46 5.04 (0.46) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $37.23 0.44 (7.51) (0.43) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $41.28 0.36 (4.05) (0.36) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $44.20 0.44 0.10 (0.42) (3.04)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $46.36 0.17 (2.09) (0.24) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ..................... $41.19 0.51 5.45 (0.53) (0.26)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $31.31 0.11 4.94 (0.10) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $28.72 0.25 5.02 (0.22) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $37.18 0.16 (7.49) (0.14) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $41.22 0.05 (4.03) (0.06) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $44.17 0.11 0.11 (0.13) (3.04)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $46.27 0.05 (2.08) (0.07) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ..................... $41.12 0.19 5.45 (0.23) (0.26)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $32.26 0.10 5.10 (0.10) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ $29.52 0.25 5.19 (0.24) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ $38.18 0.18 (7.70) (0.15) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ $42.32 0.05 (4.14) (0.05) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ $45.30 0.19 0.03 (0.16) (3.04)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... $47.49 0.08 (2.17) (0.10) 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 ............... $37.26 0.47 10.39 (0.48) (0.15)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
128
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET --------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $40.66 0.28% 1.36%(4) (0.11)%(4) 1.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $35.61 0.42% 1.54%(4) (0.29)%(4) 1.25%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $29.00 0.22% 1.58%(4) (0.33)%(4) 1.25%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $36.33 0.23% 1.61%(4) (0.46)%(4) 1.15%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $52.73 0.31% 1.51%(4) (0.51)%(4) 1.00%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $48.01 0.45% 1.20%(4) (0.20)%(4) 1.00%(4)
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.00 $48.25 0.47% 1.22%(4) (0.22)%(4) 1.00%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $39.43 (0.49)% 2.11%(4) (0.11)%(4) 2.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $34.43 (0.33)% 2.31%(4) (0.31)%(4) 2.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $28.15 (0.53)% 2.39%(4) (0.39)%(4) 2.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $35.41 (0.52)% 2.41%(4) (0.51)%(4) 1.90%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $51.70 (0.44)% 2.28%(4) (0.53)%(4) 1.75%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $47.33 (0.30)% 2.20%(4) (0.45)%(4) 1.75%(4)
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.00 $47.69 (0.28)% 2.22%(4) (0.47)%(4) 1.75%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $39.93 (0.48)% 2.11%(4) (0.11)%(4) 2.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $34.90 (0.33)% 2.28%(4) (0.28)%(4) 2.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $28.56 (0.52)% 2.13%(4) (0.13)%(4) 2.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $35.91 (0.52)% 2.01%(4) (0.11)%(4) 1.90%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $52.36 (0.40)% 2.95%(4) (1.20)%(4) 1.75%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $47.90 (0.28)% 2.63%(4) (0.88)%(4) 1.75%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 ............... 0.00 $48.26 (0.28)% 5.15%(4) (3.40)%(4) 1.75%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $40.66 0.51% 1.03%(4) (0.03)%(4) 1.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $35.64 0.67% 1.17%(4) (0.17)%(4) 1.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $29.04 0.47% 1.14%(4) (0.14)%(4) 1.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $36.38 0.38% 1.07%(4) (0.07)%(4) 1.00%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $52.72 0.31% 1.10%(4) (0.10)%(4) 1.00%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $48.00 0.44% 1.18%(4) (0.18)%(4) 1.00%(4)
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.00 $48.25 0.47% 1.17%(4) (0.17)%(4) 1.00%(4)
DIVERSIFIED SMALL CAP
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $13.48 (0.43)% 1.21%(4) (0.01)%(4) 1.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $11.32 (0.13)% 1.27%(4) (0.10)%(4) 1.17%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $ 8.70 (0.24)% 1.38%(4) (0.18)%(4) 1.20%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $ 9.18 0.13% 1.28%(4) (0.08)%(4) 1.20%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $11.18 0.05% 1.39%(4) (0.19)%(4) 1.20%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $ 9.02 (0.18)% 1.59%(4) (0.39)%(4) 1.20%(4)
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.00 $ 8.99 (0.05)% 1.65%(4) (0.45)%(4) 1.20%(4)
EQUITY INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $34.87 1.38% 1.17%(4) (0.07)%(4) 1.10%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $31.32 1.57% 1.33%(4) (0.23)%(4) 1.10%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $28.74 1.19% 1.36%(4) (0.26)%(4) 1.10%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $37.23 0.86% 1.51%(4) (0.41)%(4) 1.10%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $41.28 1.07% 1.28%(4) (0.18)%(4) 1.10%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $44.20 1.12% 0.90%(4) (0.05)%(4) 0.85%(4)
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.00 $46.36 1.23% 0.93%(4) (0.08)%(4) 0.85%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $34.86 0.62% 1.92%(4) (0.07)%(4) 1.85%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $31.31 0.82% 2.13%(4) (0.28)%(4) 1.85%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $28.72 0.43% 2.18%(4) (0.33)%(4) 1.85%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $37.18 0.12% 2.20%(4) (0.35)%(4) 1.85%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $41.22 0.28% 2.03%(4) (0.18)%(4) 1.85%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $44.17 0.37% 1.90%(4) (0.30)%(4) 1.60%(4)
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.00 $46.27 0.48% 1.94%(4) (0.34)%(4) 1.60%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $35.96 0.63% 1.92%(4) (0.07)%(4) 1.85%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.00 $32.26 0.82% 2.07%(4) (0.22)%(4) 1.85%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.00 $29.52 0.46% 2.12%(4) (0.27)%(4) 1.85%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 0.00 $38.18 0.14% 2.02%(4) (0.17)%(4) 1.85%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.00 $42.32 0.29% 1.96%(4) (0.11)%(4) 1.85%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.00 $45.30 0.42% 2.37%(4) (0.77)%(4) 1.60%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 ............... 0.00 $47.49 0.48% 4.37%(4) (2.77)%(4) 1.60%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- --------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 14.94% 18%(6) $ 97,865
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 23.21% 32%(6) $ 76,292
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.04)% 30%(6) $ 57,876
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (24.07)% 34%(6) $ 74,038
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 15.99% 38%(6) $ 95,646
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (0.50)% 13%(6) $ 70,624
JUNE 1, 1998 TO MAY 31, 1999 ..................... 15.08% 35%(6) $ 69,768
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 14.52% 18%(6) $ 96,185
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 22.31% 32%(6) $ 92,300
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.64)% 30%(6) $ 85,035
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (24.65)% 34%(6) $ 111,956
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 15.10% 38%(6) $ 143,472
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (0.75)% 13%(6) $ 113,874
JUNE 1, 1998 TO MAY 31, 1999 ..................... 14.24% 35%(6) $ 111,106
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 14.48% 18%(6) $ 11,676
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 22.23% 32%(6) $ 9,463
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.62)% 30%(6) $ 6,730
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (24.64)% 34%(6) $ 7,693
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 15.11% 38%(6) $ 8,526
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (0.75)% 13%(6) $ 2,018
OCTOBER 1, 1998(3) TO MAY 31, 1999 ............... 28.02% 35%(6) $ 542
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 15.07% 18%(6) $1,249,373
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 23.55% 32%(6) $1,152,692
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (18.86)% 30%(6) $1,014,998
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (23.95)% 34%(6) $1,398,810
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 15.99% 38%(6) $1,938,206
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (0.52)% 13%(6) $1,902,474
JUNE 1, 1998 TO MAY 31, 1999 ..................... 15.08% 35%(6) $1,629,191
DIVERSIFIED SMALL CAP
- --------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 19.85% 37%(6) $ 427,888
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 31.32% 84%(6) $ 285,650
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (4.17)% 93%(6) $ 192,987
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (12.52)% 113%(6) $ 138,795
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 23.95% 121%(6) $ 115,700
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.33% 39%(6) $ 67,459
JUNE 1, 1998 TO MAY 31, 1999 ..................... (14.54)% 112%(6) $ 60,261
EQUITY INCOME
- --------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 16.88% 8%(5) $ 190,994
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 20.12% 9%(5) $ 161,962
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (19.84)% 12%(5) $ 124,015
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (8.97)% 3%(5) $ 165,304
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 1.17% 9%(5) $ 196,314
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (4.16)% 5%(5) $ 109,081
JUNE 1, 1998 TO MAY 31, 1999 ..................... 14.74% 3%(5) $ 105,162
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 16.44% 8%(5) $ 95,592
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 19.22% 9%(5) $ 98,690
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.43)% 12%(5) $ 91,889
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (9.67)% 3%(5) $ 134,403
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.41% 9%(5) $ 152,682
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (4.40)% 5%(5) $ 118,792
JUNE 1, 1998 TO MAY 31, 1999 ..................... 13.90% 3%(5) $ 106,688
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 16.43% 8%(5) $ 12,994
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 19.27% 9%(5) $ 10,689
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (20.41)% 12%(5) $ 7,415
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (9.66)% 3%(5) $ 7,508
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 0.41% 9%(5) $ 7,115
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (4.41)% 5%(5) $ 2,124
OCTOBER 1, 1998(3) TO MAY 31, 1999 ............... 28.55% 3%(5) $ 1,106
129
WELLS FARGO STOCK 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
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $31.28 0.27 4.94 (0.27) (1.40)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $28.72 0.55 5.02 (0.55) (2.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $37.21 0.54 (7.51) (0.53) (0.99)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $41.27 0.46 (4.05) (0.47) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $44.19 0.52 0.12 (0.52) (3.04)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $46.35 0.18 (2.10) (0.24) 0.00
JUNE 1, 1998 TO MAY 31, 1999 .................... $41.18 0.51 5.45 (0.53) (0.26)
EQUITY INDEX
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $44.55 0.25 5.76 (0.50) (1.31)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $38.09 0.47 8.23 (0.51) (1.73)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $54.20 0.41 (9.85) (0.43) (6.24)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $84.54 0.43 (21.00) (0.35) (9.42)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $78.14 0.33 9.36 (0.10) (3.19)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... $64.93 0.53 16.54 (0.53) (3.33)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $44.32 0.07 5.75 (0.18) (1.31)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $37.80 0.16 8.20 (0.12) (1.72)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $53.78 0.06 (9.84) (0.02) (6.18)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $84.06 (0.02) (20.91) 0.00 (9.35)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $78.19 (0.16) 9.22 0.00 (3.19)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... $65.03 (0.03) 16.52 0.00 (3.33)
GROWTH
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $10.64 (0.03) 1.28 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 9.39 (0.05)(7) 1.30 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $11.66 (0.02)(7) (2.25) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $22.82 (0.02) (7.01) 0.00 (4.13)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $22.85 (0.05) 3.07 0.00 (3.05)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... $20.48 0.01 5.65 (0.01) (3.28)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $ 7.28 (0.06) 0.89 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 6.47 (0.08)(7) 0.89 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $ 8.10 (0.07)(7) (1.56) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $15.96 (0.09) (4.88) 0.00 (2.89)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $16.11 (0.14) 2.14 0.00 (2.15)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... $14.53 (0.09) 4.00 0.00 (2.33)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $12.55 (0.03) 1.52 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $11.05 (0.03)(7) 1.53 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $13.71 0.00(7) (2.66) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $26.80 (0.06) (8.18) 0.00 (4.85)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $26.80 (0.02) 3.59 0.00 (3.57)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... $24.01 0.03 6.64 (0.03) (3.85)
GROWTH EQUITY
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $24.64 (0.05) 3.90 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $19.50 (0.08)(7) 5.22(7) 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $23.87 (0.10) (3.34) (0.01) (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $39.89 (0.07) (9.86) 0.00 (6.09)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $36.83 (0.21) 8.90 0.00 (5.63)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $36.17 (0.01) 0.67 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 .................... $35.73 (0.02) 2.56 (0.03) (2.07)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $23.02 (0.40) 3.90 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $18.37 (0.23)(7) 4.88(7) 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $22.69 (0.31) (3.09) 0.00 (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $38.48 (0.19) (9.51) 0.00 (6.09)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $35.93 (0.35) 8.53 0.00 (5.63)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $35.39 (0.10) 0.64 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 .................... $35.23 (0.25) 2.48 0.00 (2.07)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $23.87 (0.12) 3.75 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $19.04 (0.25)(7) 5.08(7) 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $23.49 (0.25) (3.28) 0.00 (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $39.61 (0.22) (9.81) 0.00 (6.09)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $36.84 (0.15) 8.55 0.00 (5.63)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $36.29 0.02 0.53 0.00 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. $30.66 (0.13) 7.86 (0.03) (2.07)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
130
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- ------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $34.82
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $31.28
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $28.72
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $37.21
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $41.27
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $44.19
JUNE 1, 1998 TO MAY 31, 1999 .................... 0.00 $46.35
EQUITY INDEX
- ------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $48.75
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $44.55
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $38.09
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $54.20
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $84.54
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.00 $78.14
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $48.65
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $44.32
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $37.80
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $53.78
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $84.06
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.00 $78.19
GROWTH
- ------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $11.89
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $10.64
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $ 9.39
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $11.66
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $22.82
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.00 $22.85
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $ 8.11
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $ 7.28
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $ 6.47
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $ 8.10
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $15.96
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.00 $16.11
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $14.04
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $12.55
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $11.05
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $13.71
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $26.80
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.00 $26.80
GROWTH EQUITY
- ------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $28.49
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $24.64
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $19.50
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $23.87
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $39.89
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $36.83
JUNE 1, 1998 TO MAY 31, 1999 .................... 0.00 $36.17
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $26.52
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $23.02
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $18.37
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $22.69
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $38.48
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $35.93
JUNE 1, 1998 TO MAY 31, 1999 .................... 0.00 $35.39
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $27.50
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $23.87
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $19.04
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.00 $23.49
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $39.61
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $36.84
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 0.00 $36.29
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
---------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 1.63% 0.84%(4) 0.00%(4) 0.84%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 1.83% 0.94%(4) (0.09)%(4) 0.85%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 1.44% 0.91%(4) (0.06)%(4) 0.85%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 1.11% 0.85%(4) 0.00%(4) 0.85%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 1.21% 0.87%(4) (0.02)%(4) 0.85%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 1.11% 0.88%(4) (0.03)%(4) 0.85%(4)
JUNE 1, 1998 TO MAY 31, 1999 .................... 1.23% 0.89%(4) (0.04)%(4) 0.85%(4)
EQUITY INDEX
- -------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 1.09% 0.86% (0.20)% 0.66%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 1.14% 1.03% (0.36)% 0.67%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.86% 0.99% (0.32)% 0.67%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.67% 0.88% (0.21)% 0.67%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.54% 0.85% (0.14)% 0.71%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.68% 0.80% (0.09)% 0.71%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.35% 1.61% (0.21)% 1.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.40% 1.88% (0.47)% 1.41%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.11% 1.97% (0.56)% 1.41%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.07)% 1.63% (0.22)% 1.41%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (0.21)% 1.72% (0.26)% 1.46%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... (0.06)% 1.61% (0.16)% 1.45%
GROWTH
- -------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.56)% 1.45% (0.20)% 1.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (0.49)% 1.56% (0.35)% 1.21%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.17)% 1.70% (0.58)% 1.12%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.12)% 1.53% (0.41)% 1.12%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (0.22)% 1.42% (0.30)% 1.12%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.05% 1.13% (0.03)% 1.10%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (1.31)% 2.20% (0.20)% 2.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (1.23)% 2.48% (0.54)% 1.94%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.91)% 2.69% (0.82)% 1.87%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.87)% 2.23% (0.36)% 1.87%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (0.96)% 2.22% (0.35)% 1.87%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... (0.64)% 1.86% (0.07)% 1.79%
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.31)% 1.12% (0.12)% 1.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (0.29)% 1.11% (0.11)% 1.00%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.02)% 1.00% 0.00% 1.00%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 0.06% 1.03% (0.03)% 1.00%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (0.05)% 1.02% (0.02)% 1.00%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 0.15% 1.02% (0.02)% 1.00%
GROWTH EQUITY
- -------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.53)% 1.58%(4) (0.08)%(4) 1.50%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (0.38)% 1.82%(4) (0.32)%(4) 1.50%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.43)% 1.88%(4) (0.41)%(4) 1.47%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.31)% 1.93%(4) (0.43)%(4) 1.50%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (0.48)% 1.72%(4) (0.22)%(4) 1.50%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.01)% 1.45%(4) (0.20)%(4) 1.25%(4)
JUNE 1, 1998 TO MAY 31, 1999 .................... (0.08)% 1.44%(4) (0.19)%(4) 1.25%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (1.31)% 2.33%(4) (0.08)%(4) 2.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (1.13)% 2.59%(4) (0.34)%(4) 2.25%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.18)% 2.63%(4) (0.41)%(4) 2.22%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (1.06)% 2.65%(4) (0.40)%(4) 2.25%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (1.20)% 2.58%(4) (0.33)%(4) 2.25%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.76)% 2.45%(4) (0.45)%(4) 2.00%(4)
JUNE 1, 1998 TO MAY 31, 1999 .................... (0.83)% 2.45%(4) (0.45)%(4) 2.00%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (1.29)% 2.33%(4) (0.08)%(4) 2.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (1.11)% 2.68%(4) (0.43)%(4) 2.25%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.17)% 2.74%(4) (0.52)%(4) 2.22%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (1.06)% 2.32%(4) (0.07)%(4) 2.25%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (1.16)% 2.75%(4) (0.50)%(4) 2.25%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.87)% 6.22%(4) (4.22)%(4) 2.00%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. (0.87)% 21.40%(4) (19.39)%(4) 2.01%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- -------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 17.02% 8%(5) $ 933,722
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 20.42% 9%(5) $ 907,662
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (19.64)% 12%(5) $ 902,521
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (8.75)% 3%(5) $1,163,331
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 1.39% 9%(5) $1,403,624
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (4.16)% 5%(5) $1,471,410
JUNE 1, 1998 TO MAY 31, 1999 .................... 14.75% 3%(5) $1,519,541
EQUITY INDEX
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 13.69% 1% $ 349,965
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 23.59% 2% $ 312,974
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (20.99)% 4% $ 271,640
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (27.03)% 4% $ 382,462
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 12.43% 8% $ 596,083
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 26.82% 6% $ 611,111
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 13.26% 1% $ 61,025
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 22.71% 2% $ 57,505
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (21.60)% 4% $ 50,635
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (27.57)% 4% $ 71,450
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 11.58% 8% $ 96,378
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 25.86% 6% $ 66,931
GROWTH
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.75% 30% $ 133,518
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 13.31% 52% $ 125,317
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (19.47)% 88% $ 120,777
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (36.26)% 80% $ 174,828
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 14.40% 51% $ 311,038
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 29.54% 38% $ 315,134
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.40% 30% $ 9,243
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 12.52% 52% $ 11,714
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (20.12)% 88% $ 19,918
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (36.69)% 80% $ 36,453
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 13.48% 51% $ 69,433
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 28.68% 38% $ 60,909
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.87% 30% $ 36,521
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 13.57% 52% $ 45,151
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (19.40)% 88% $ 67,930
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (36.19)% 80% $ 156,641
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 14.55% 51% $ 52,561
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 ........... 29.69% 38% $ 17,588
GROWTH EQUITY
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 15.62% 24%(6) $ 20,956
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 26.36% 58%(6) $ 15,576
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (15.46)% 40%(6) $ 11,210
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (28.93)% 75%(6) $ 12,473
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 25.01% 78%(6) $ 17,726
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 1.82% 22%(6) $ 23,750
JUNE 1, 1998 TO MAY 31, 1999 .................... 7.57% 73%(6) $ 17,335
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 15.20% 24%(6) $ 14,251
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 25.31% 58%(6) $ 14,379
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (16.09)% 40%(6) $ 13,670
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (29.46)% 75%(6) $ 17,319
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 24.11% 78%(6) $ 25,124
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 1.53% 22%(6) $ 19,211
JUNE 1, 1998 TO MAY 31, 1999 .................... 6.78% 73%(6) $ 18,976
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 15.21% 24%(6) $ 3,698
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 25.37% 58%(6) $ 2,980
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (16.10)% 40%(6) $ 1,721
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (29.46)% 75%(6) $ 1,799
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 24.11% 78%(6) $ 2,240
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 1.52% 22%(6) $ 320
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 25.73% 73%(6) $ 60
131
WELLS FARGO STOCK 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
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $24.82 (0.04) 3.96 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $19.61 (0.03) 5.25 (0.01) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $24.00 (0.05) (3.35) (0.07) (0.92)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $39.98 (0.02) (9.87) 0.00 (6.09)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $36.82 (0.09) 8.88 0.00 (5.63)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. $36.17 0.01 0.64 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 ................... $35.72 (0.03) 2.58 (0.23) (2.07)
INDEX
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $40.33 0.33 5.26 (0.58) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $32.98 0.55 7.37 (0.57) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $42.00 0.51 (8.99) (0.54) 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $59.73 0.54 (15.94) (0.60) (1.73)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $53.67 0.59 6.42 (0.26) (0.69)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. $54.83 0.24 (0.77) (0.36) (0.27)
JUNE 1, 1998 TO MAY 31, 1999 ................... $46.36 0.57 8.87 (0.57) (0.40)
INTERNATIONAL EQUITY
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 9.88 (0.01) 1.76 (0.06) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 8.46 0.04(7) 1.38 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $10.50 (0.01)(7) (2.03) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $15.24 0.01 (4.44) 0.00 (0.31)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $12.70 0.11 2.64 (0.13) (0.08)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... $ 9.36 (0.02) 3.36 0.00 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 9.48 (0.26) 1.91 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 8.19 (0.03)(7) 1.32 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $10.25 (0.09)(7) (1.97) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $14.99 (0.11) (4.32) 0.00 (0.31)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $12.54 0.06 2.54 (0.07) (0.08)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... $ 9.30 (0.10) 3.34 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 9.47 (0.05) 1.69 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 8.18 (0.02)(7) 1.31 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $10.24 (0.09)(7) (1.97) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $14.98 (0.07) (4.36) 0.00 (0.31)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $12.54 0.07 2.54 (0.09) (0.08)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... $ 9.30 (0.04) 3.28 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 9.87 0.01 1.75 (0.08) 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 8.46 0.08(7) 1.34 (0.01) 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $10.47 0.02(7) (2.03) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $15.17 0.01 (4.40) 0.00 (0.31)
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ...... $13.61 0.12 1.66 (0.14) (0.08)
LARGE CAP APPRECIATION
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 8.92 (0.02) (1.37) 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 7.53 (0.01) 1.40 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $ 9.53 (0.01) (1.99) 0.00 0.00
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... $10.00 0.00 (0.47) 0.00 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 8.78 (0.05) (1.26) 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 7.47 (0.06) 1.37 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $ 9.52 (0.07) (1.98) 0.00 0.00
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... $10.00 0.00 (0.48) 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 8.79 (0.02) (1.30) 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 7.47 (0.03) 1.35 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $ 9.53 (0.05) (2.01) 0.00 0.00
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... $10.00 0.00 (0.47) 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 8.96 0.01 (1.42) 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 7.55 0.00 1.41 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $ 9.53 0.00 (1.98) 0.00 0.00
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... $10.00 0.01 (0.48) 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
132
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET ------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $28.74 (0.29)% 1.25%(4) 0.00%(4) 1.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $24.82 (0.12)% 1.45%(4) (0.20)%(4) 1.25%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $19.61 (0.19)% 1.41%(4) (0.19)%(4) 1.22%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $24.00 (0.06)% 1.29%(4) (0.04)%(4) 1.25%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $39.98 (0.23)% 1.34%(4) (0.09)%(4) 1.25%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. 0.00 $36.82 0.05% 1.40%(4) (0.15)%(4) 1.25%(4)
JUNE 1, 1998 TO MAY 31, 1999 ................... 0.00 $36.17 (0.08)% 1.38%(4) (0.13)%(4) 1.25%(4)
INDEX
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $45.34 1.50% 0.33%(4) (0.08)%(4) 0.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $40.33 1.58% 0.44%(4) (0.19)%(4) 0.25%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $32.98 1.28% 0.39%(4) (0.14)%(4) 0.25%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $42.00 1.11% 0.30%(4) (0.05)%(4) 0.25%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $59.73 1.02% 0.33%(4) (0.08)%(4) 0.25%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. 0.00 $53.67 1.17% 0.55%(4) (0.30)%(4) 0.25%(4)
JUNE 1, 1998 TO MAY 31, 1999 ................... 0.00 $54.83 1.28% 0.55%(4) (0.30)%(4) 0.25%(4)
INTERNATIONAL EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $11.57 (0.17)% 1.72% (0.22)% 1.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 9.88 0.42% 1.76% (0.26)% 1.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 8.46 (0.08)% 1.96% (0.24)% 1.72%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $10.50 0.05% 1.81% (0.06)% 1.75%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $15.24 (0.31)% 2.00% (0.25)% 1.75%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 0.00 $12.70 (0.17)% 2.10% (0.35)% 1.75%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $11.13 (0.96)% 2.47% (0.22)% 2.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 9.48 (0.31)% 2.82% (0.57)% 2.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 8.19 (0.83)% 3.06% (0.59)% 2.47%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $10.25 (0.72)% 2.70% (0.20)% 2.50%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $14.99 (1.01)% 2.95% (0.45)% 2.50%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 0.00 $12.54 (0.81)% 2.79% (0.39)% 2.40%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $11.11 (0.91)% 2.47% (0.22)% 2.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 9.47 (0.27)% 2.70% (0.45)% 2.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 8.18 (0.78)% 2.96% (0.49)% 2.47%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $10.24 (0.69)% 2.50% 0.00% 2.50%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $14.98 (0.86)% 3.02% (0.52)% 2.50%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 0.00 $12.54 (0.78)% 2.72% (0.35)% 2.37%
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $11.55 0.09% 1.39% (0.14)% 1.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 9.87 0.76% 1.34% (0.09)% 1.25%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 8.46 0.31% 1.46% (0.02)% 1.44%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $10.47 0.31% 1.53% (0.03)% 1.50%
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ...... 0.00 $15.17 0.32% 1.92% (0.42)% 1.50%
LARGE CAP APPRECIATION
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 7.53 (0.14)% 1.40%(4) (0.15)%(4) 1.25%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 8.92 (0.19)% 2.45%(4) (1.24)%(4) 1.21%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 7.53 (0.15)% 6.48%(4) (5.28)%(4) 1.20%(4)
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... 0.00 $ 9.53 1.17% 1.24%(4) (0.29)%(4) 0.95%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 7.47 (0.88)% 2.16%(4) (0.16)%(4) 2.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 8.78 (0.95)% 3.11%(4) (1.16)%(4) 1.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 7.47 (0.90)% 8.45%(4) (6.50)%(4) 1.95%(4)
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... 0.00 $ 9.52 (0.24)% 1.78%(4) 0.00%(4) 1.78%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 7.47 (0.88)% 2.16%(4) (0.16)%(4) 2.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 8.79 (0.94)% 3.96%(4) (2.01)%(4) 1.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 7.47 (0.93)% 8.37%(4) (6.42)%(4) 1.95%(4)
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... 0.00 $ 9.53 0.00% 1.83%(4) 0.00%(4) 1.83%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 7.55 0.12% 1.08%(4) (0.08)%(4) 1.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 8.96 (0.06)% 1.61%(4) (0.66)%(4) 0.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 7.55 0.05% 5.81%(4) (4.86)%(4) 0.95%(4)
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... 0.00 $ 9.53 1.00% 0.86%(4) 0.00%(4) 0.86%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- ------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 15.79% 24%(6) $ 522,800
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 26.62% 58%(6) $ 450,480
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (15.25)% 40%(6) $ 363,946
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (28.74)% 75%(6) $ 476,031
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 25.32% 78%(6) $ 751,174
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. 1.80% 22%(6) $ 644,215
JUNE 1, 1998 TO MAY 31, 1999 ................... 7.60% 73%(6) $ 920,586
INDEX
- ------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 13.90% 1%(5) $1,062,022
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 24.22% 3%(5) $ 839,581
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (20.54)% 4%(5) $ 596,168
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (26.63)% 2%(5) $ 733,380
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 13.06% 8%(5) $ 982,975
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. (1.00)% 11%(5) $ 813,861
JUNE 1, 1998 TO MAY 31, 1999 ................... 20.57% 4%(5) $1,154,289
INTERNATIONAL EQUITY
- ------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 17.77% 22% $ 61,704
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 16.78% 73% $ 52,762
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (19.43)% 52% $ 22,806
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (29.59)% 36% $ 30,727
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 21.65% 26% $ 43,659
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 35.68% 41% $ 35,779
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 17.41% 22% $ 18,491
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 15.75% 73% $ 20,149
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (20.10)% 52% $ 29,107
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (30.12)% 36% $ 41,122
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 20.65% 26% $ 63,019
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 34.84% 41% $ 37,911
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 17.32% 22% $ 3,007
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 15.77% 73% $ 2,530
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (20.12)% 52% $ 2,167
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (30.14)% 36% $ 2,704
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 20.72% 26% $ 2,857
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 34.84% 41% $ 673
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 17.90% 22% $ 303,203
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 16.83% 73% $ 266,099
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (19.20)% 52% $ 372,380
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (29.47)% 36% $ 108,796
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ...... 13.01% 26% $ 122,397
LARGE CAP APPRECIATION
- ------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 12.89% 84%(5) $ 2,042
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 18.46% 153%(5) $ 1,033
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (20.99)% 123%(5) $ 898
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... (4.70)% 10%(5) $ 41
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 12.41% 84%(5) $ 1,587
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 17.54% 153%(5) $ 1,449
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (21.53)% 123%(5) $ 1,041
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... (4.80)% 10%(5) $ 91
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 12.40% 84%(5) $ 697
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 17.67% 153%(5) $ 499
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (21.62)% 123%(5) $ 200
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... (4.70)% 10%(5) $ 26
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 13.06% 84%(5) $ 18,677
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 18.68% 153%(5) $ 16,905
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (20.78)% 123%(5) $ 4,155
AUGUST 31, 2001(3) TO SEPTEMBER 30, 2001 ....... (4.70)% 10%(5) $ 10
133
WELLS FARGO STOCK 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
- --------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $ 9.82 0.01 1.58 (0.01) 0.00
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ $10.00 0.00 (0.18) 0.00 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $ 9.81 0.00 1.55 0.00 0.00
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ $10.00 (0.01) (0.18) 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $ 9.81 0.00 1.54 0.00 0.00
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ $10.00 (0.01) (0.18) 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $ 9.82 0.01 1.60 (0.01) 0.00
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ $10.00 0.00 (0.18) 0.00 0.00
LARGE COMPANY GROWTH
- --------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $43.96 (0.13) 3.71 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $34.52 (0.46) 9.90 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $44.57 (0.34) (9.71) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $75.03 (0.37) (29.21) 0.00 (0.84)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $57.96 (0.49) 19.16 0.00 (1.60)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $58.09 (0.12) (0.01) 0.00 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. $38.48 (0.16) 20.82 0.00 (1.05)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $40.11 (0.37) 3.47 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $31.72 (0.68) 9.07 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $41.18 (0.69) (8.77) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $69.77 (0.62) (27.09) 0.00 (0.84)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $54.29 (0.72) 17.80 0.00 (1.60)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $54.50 (0.19) (0.02) 0.00 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. $39.80 (0.17) 15.92 0.00 (1.05)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $40.18 (0.28) 3.40 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $31.76 (0.62) 9.04 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $41.22 (0.89) (8.57) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $69.85 (0.43) (27.32) 0.00 (0.84)
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ....... $59.32 (0.40) 12.53 0.00 (1.60)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $41.67 (0.07) 3.52 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $32.65 (0.16) 9.18 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $42.06 (0.21) (9.20) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $70.71 (0.24) (27.53) 0.00 (0.84)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $54.60 (0.30) 18.01 0.00 (1.60)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $54.67 (0.07) 0.00 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 .................... $39.94 (0.17) 15.95 0.00 (1.05)
MONTGOMERY EMERGING MARKETS FOCUS
- --------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $17.76 (0.04)(7) 4.37 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... $15.27 0.02(7) 2.47 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ................... $14.50 0.00 0.77 0.00 0.00
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ $11.37 0.29 2.94 (0.10) 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $17.62 (0.14)(7) 4.39 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... $15.18 (0.02)(7) 2.46 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ................... $14.52 0.10 0.56 0.00 0.00
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ $11.37 0.08 3.17 (0.10) 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $17.56 (0.13)(7) 4.33 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... $15.12 (0.02)(7) 2.46 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 ................... $14.48 0.02 0.62 0.00 0.00
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ $11.37 0.05 3.16 (0.10) 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
134
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET -----------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $11.40 0.45% 15.71%(4) (14.46)%(4) 1.25%(4)
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ 0.00 $ 9.82 (0.26)% 196.38%(4) (195.13)%(4) 1.25%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $11.36 (0.28)% 16.09%(4) (14.09)%(4) 2.00%(4)
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ 0.00 $ 9.81 (1.08)% 189.72%(4) (187.72)%(4) 2.00%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $11.35 (0.33)% 17.48%(4) (15.48)%(4) 2.00%(4)
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ 0.00 $ 9.81 (0.64)% 209.42%(4) (207.42)%(4) 2.00%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $11.42 0.30% 15.06%(4) (14.06)%(4) 1.00%(4)
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ 0.00 $ 9.82 (0.33)% 211.67%(4) (210.67)%(4) 1.00%(4)
LARGE COMPANY GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $47.54 (0.54)% 1.28%(4) (0.08)%(4) 1.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $43.96 (0.69)% 1.41%(4) (0.21)%(4) 1.20%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $34.52 (0.76)% 1.45%(4) (0.25)%(4) 1.20%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.04) $44.57 (0.71)% 1.36%(4) (0.16)%(4) 1.20%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $75.03 (0.73)% 1.31%(4) (0.11)%(4) 1.20%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $57.96 (0.58)% 1.40%(4) (0.20)%(4) 1.20%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 0.00 $58.09 (0.68)% 1.35%(4) (0.15)%(4) 1.20%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $43.21 (1.29)% 2.03%(4) (0.08)%(4) 1.95%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $40.11 (1.35)% 2.33%(4) (0.45)%(4) 1.88%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $31.72 (1.31)% 2.46%(4) (0.71)%(4) 1.75%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.04) $41.18 (1.26)% 2.19%(4) (0.44)%(4) 1.75%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $69.77 (1.28)% 2.15%(4) (0.40)%(4) 1.75%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $54.29 (1.13)% 2.05%(4) (0.30)%(4) 1.75%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 0.00 $54.50 (1.22)% 2.15%(4) (0.39)%(4) 1.76%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $43.30 (1.29)% 2.03%(4) (0.08)%(4) 1.95%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $40.18 (1.34)% 2.16%(4) (0.30)%(4) 1.86%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $31.76 (1.31)% 2.28%(4) (0.53)%(4) 1.75%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.04) $41.22 (1.26)% 2.15%(4) (0.40)%(4) 1.75%(4)
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ....... 0.00 $69.85 (1.29)% 2.16%(4) (0.41)%(4) 1.75%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $45.12 (0.28)% 0.95%(4) (0.01)%(4) 0.94%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $41.67 (0.44)% 1.05%(4) (0.09)%(4) 0.96%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... 0.00 $32.65 (0.56)% 1.03%(4) (0.03)%(4) 1.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.04) $42.06 (0.48)% 0.97%(4) 0.00%(4) 0.97%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 0.00 $70.71 (0.53)% 1.02%(4) (0.02)%(4) 1.00%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $54.60 (0.38)% 1.04%(4) (0.04)%(4) 1.00%(4)
JUNE 1, 1998 TO MAY 31, 1999 .................... 0.00 $54.67 (0.49)% 1.09%(4) (0.09)%(4) 1.00%(4)
MONTGOMERY EMERGING MARKETS FOCUS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $22.09 (0.38)% 2.01% (0.11)% 1.90%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... 0.00 $17.76 0.42% 2.03% (0.15)% 1.88%
JULY 1, 2002 TO JUNE 30, 2003 ................... 0.00 $15.27 (1.65)% 2.18% 0.00% 2.18%
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ 0.00 $14.50 0.43% 5.27% (3.07)% 2.20%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $21.87 (1.32)% 2.78% (0.13)% 2.65%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... 0.00 $17.62 (0.45)% 2.79% (0.15)% 2.64%
JULY 1, 2002 TO JUNE 30, 2003 ................... 0.00 $15.18 1.59% 2.78% (0.45)% 2.33%
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ 0.00 $14.52 0.10% 5.38% (3.07)% 2.31%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $21.76 (1.27)% 2.77% (0.12)% 2.65%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... 0.00 $17.56 (0.39)% 2.79% (0.15)% 2.64%
JULY 1, 2002 TO JUNE 30, 2003 ................... 0.00 $15.12 (3.00)% 3.53% (0.14)% 3.39%
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ 0.00 $14.48 0.10% 6.51% (3.07)% 3.44%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- -------------------------------------------------------------------------------------------
LARGE CAP VALUE
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 16.14% 67%(5) $ 1,198
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ (1.80)% 3%(5) $ 76
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 15.80% 67%(5) $ 518
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ (1.90)% 3%(5) $ 37
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 15.70% 67%(5) $ 206
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ (1.90)% 3%(5) $ 12
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 16.38% 67%(5) $ 150
AUGUST 29, 2003(3) TO SEPTEMBER 30, 2003 ........ (1.80)% 3%(5) $ 10
LARGE COMPANY GROWTH
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 8.14% 9%(5) $ 422,295
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 27.35% 13%(5) $ 364,406
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (22.55)% 18%(5) $ 141,774
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (39.85)% 13%(5) $ 202,514
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 32.50% 9%(5) $ 303,948
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.22)% 5%(5) $ 188,890
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 54.16% 28%(5) $ 191,233
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 7.73% 9%(5) $ 255,208
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 26.45% 13%(5) $ 246,894
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (22.97)% 18%(5) $ 218,625
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (40.18)% 13%(5) $ 307,706
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 31.75% 9%(5) $ 461,918
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.39)% 5%(5) $ 201,351
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 40.01% 28%(5) $ 156,870
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 7.77% 9%(5) $ 43,819
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 26.51% 13%(5) $ 40,436
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (22.95)% 18%(5) $ 27,092
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (40.19)% 13%(5) $ 27,189
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ....... 20.72% 9%(5) $ 25,463
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 8.31% 9%(5) $2,109,530
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 27.60% 13%(5) $1,761,429
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (22.37)% 18%(5) $1,038,491
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (39.73)% 13%(5) $1,066,607
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 32.74% 9%(5) $1,532,428
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.13)% 5%(5) $ 801,943
JUNE 1, 1998 TO MAY 31, 1999 .................... 39.96% 28%(5) $ 645,385
MONTGOMERY EMERGING MARKETS FOCUS
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 24.31% 122% $ 169,245
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... 16.37% 49% $ 117,842
JULY 1, 2002 TO JUNE 30, 2003 ................... 5.33% 210% $ 105,512
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ 28.57% 206% $ 23
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 24.05% 122% $ 2,429
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... 16.06% 49% $ 290
JULY 1, 2002 TO JUNE 30, 2003 ................... 4.64% 210% $ 28
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ 28.65% 206% $ 11
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 23.92% 122% $ 3,069
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ........... 16.14% 49% $ 519
JULY 1, 2002 TO JUNE 30, 2003 ................... 4.37% 210% $ 59
OCTOBER 31, 2001(3) TO JUNE 30, 2002 ............ 28.39% 206% $ 13
135
WELLS FARGO STOCK 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
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $17.64 (0.02)(7) 4.36 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $15.16 0.03(7) 2.45 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 .................... $14.41 0.30 0.54 (0.09) 0.00
JULY 1, 2001 TO JUNE 30, 2002 .................... $14.00 0.07 0.44 (0.10) 0.00
JULY 1, 2000 TO JUNE 30, 2001 .................... $16.57 0.20 (2.73) (0.04) 0.00
JULY 1, 1999 TO JUNE 30, 2000 .................... $13.15 0.19 3.47 (0.16) (0.08)
APRIL 1, 1999 TO JUNE 30, 1999(9) ................ $ 9.63 0.04 3.48 0.00 0.00
APRIL 1, 1998 TO MARCH 31, 1999 .................. $11.43 0.12 (1.76) (0.16) 0.00
MONTGOMERY INSTITUTIONAL EMERGING MARKETS
- -------------------------------------------------------------------------------------------------------------------------
SELECT CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $42.29 0.24 12.53 (0.62) 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $36.91 0.07 5.31 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 .................... $34.41 0.54 2.08 (0.12) 0.00
JULY 1, 2001 TO JUNE 30, 2002 .................... $35.30 0.28 (0.82) (0.35) 0.00
JULY 1, 2000 TO JUNE 30, 2001 .................... $47.07 0.67 (12.44) 0.00 0.00
JULY 1, 1999 TO JUNE 30, 2000 .................... $39.05 (0.45) 8.47 0.00 0.00
JULY 1, 1998 TO JUNE 30, 1999 .................... $35.61 0.38 3.06 0.00 0.00
MONTGOMERY MID CAP GROWTH
- -------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 5.09 (0.02) 1.06 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 4.77 (0.05) 0.37 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 .................... $ 4.82 (0.02) (0.03) 0.00 0.00
JULY 1, 2001 TO JUNE 30, 2002(10) ................ $ 7.27 (0.05) (1.78) 0.00 (0.62)
JULY 1, 2000 TO JUNE 30, 2001(10) ................ $12.36 (0.09) (0.80) 0.00 (4.20)
JULY 1, 1999 TO JUNE 30, 2000(10) ................ $ 9.85 (0.17) 4.01 0.00 (1.33)
JULY 1, 1998 TO JUNE 30, 1999(10) ................ $10.89 (0.08) (0.40) 0.00 (0.56)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 4.99 (0.04) 1.03 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 4.68 (0.06) 0.37 0.00 0.00
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. $ 4.67 0.01 0.00 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 4.98 (0.03) 1.03 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 4.68 (0.06) 0.36 0.00 0.00
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. $ 4.67 0.01 0.00 0.00 0.00
MONTGOMERY SMALL CAP
- -------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 9.44 (0.06) 2.38 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 8.93 (0.02) 0.53 0.00 0.00
JULY 1, 2002 TO JUNE 30, 2003 .................... $ 8.61 (0.07) 0.39 0.00 0.00
JULY 1, 2001 TO JUNE 30, 2002 .................... $11.85 (0.07) (3.08) 0.00 (0.09)
JULY 1, 2000 TO JUNE 30, 2001 .................... $22.20 (0.13) (4.43) 0.00 (5.79)
JULY 1, 1999 TO JUNE 30, 2000 .................... $16.58 (0.28) 5.90 0.00 0.00
JULY 1, 1998 TO JUNE 30, 1999 .................... $20.73 (0.17) (1.21) 0.00 (2.77)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 9.41 (0.04) 2.31 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 8.93 (0.04) 0.52 0.00 0.00
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. $ 8.88 (0.01) 0.06 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 9.42 (0.03) 2.31 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 8.93 (0.02) 0.51 0.00 0.00
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. $ 8.88 (0.01) 0.06 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... $ 9.44 0.14 2.19 0.00 0.00
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ $ 8.94 (0.02) 0.52 0.00 0.00
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. $ 8.88 0.00 0.06 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
136
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET -----------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- --------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $21.98 (0.14)% 1.68% (0.08)% 1.60%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $17.64 0.73% 1.70% (0.15)% 1.55%
JULY 1, 2002 TO JUNE 30, 2003 .................... 0.00 $15.16 2.43% 2.16% (0.64)% 1.52%
JULY 1, 2001 TO JUNE 30, 2002 .................... 0.00 $14.41 0.60% 4.66% (3.07)% 1.59%
JULY 1, 2000 TO JUNE 30, 2001 .................... 0.00 $14.00 1.68% 4.37% (2.65)% 1.72%
JULY 1, 1999 TO JUNE 30, 2000 .................... 0.00 $16.57 0.66% 6.15% (4.53)% 1.62%
APRIL 1, 1999 TO JUNE 30, 1999(9) ................ 0.00 $13.15 0.05% 8.82% (7.09)% 1.73%
APRIL 1, 1998 TO MARCH 31, 1999 .................. 0.00 $ 9.63 1.24% 8.68% (6.58)% 2.10%
MONTGOMERY INSTITUTIONAL EMERGING MARKETS
- --------------------------------------------------------------------------------------------------------------------------------
SELECT CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $54.44 0.94% 1.59% (0.34)% 1.25%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $42.29 0.66% 1.63% (0.38)% 1.25%
JULY 1, 2002 TO JUNE 30, 2003 .................... 0.00 $36.91 1.69% 1.63% (0.38)% 1.25%
JULY 1, 2001 TO JUNE 30, 2002 .................... 0.00 $34.41 0.85% 4.80% (3.50)% 1.30%
JULY 1, 2000 TO JUNE 30, 2001 .................... 0.00 $35.30 1.17% 3.18% (1.87)% 1.31%
JULY 1, 1999 TO JUNE 30, 2000 .................... 0.00 $47.07 (0.77)% 3.74% (1.59)% 2.15%
JULY 1, 1998 TO JUNE 30, 1999 .................... 0.00 $39.05 0.79% 2.42% (0.97)% 1.45%
MONTGOMERY MID CAP GROWTH
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $ 6.13 (0.80)% 1.41% 0.00% 1.41%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 5.09 (1.03)% 1.42% 0.00% 1.42%
JULY 1, 2002 TO JUNE 30, 2003 .................... 0.00 $ 4.77 (0.65)% 1.86% (0.37)% 1.49%
JULY 1, 2001 TO JUNE 30, 2002(10) ................ 0.00 $ 4.82 (0.80)% 3.10% (1.60)% 1.50%
JULY 1, 2000 TO JUNE 30, 2001(10) ................ 0.00 $ 7.27 (1.13)% 2.32% (0.81)% 1.51%
JULY 1, 1999 TO JUNE 30, 2000(10) ................ 0.00 $12.36 (1.19)% 1.92% (0.37)% 1.55%
JULY 1, 1998 TO JUNE 30, 1999(10) ................ 0.00 $ 9.85 (0.83)% 1.66% 0.00% 1.66%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $ 5.98 (1.56)% 2.16% 0.00% 2.16%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 4.99 (1.78)% 2.17% 0.00% 2.17%
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.00 $ 4.68 3.82% 2.22% (0.08)% 2.14%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $ 5.98 (1.57)% 2.16% 0.00% 2.16%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 4.98 (1.78)% 2.17% 0.00% 2.17%
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.00 $ 4.68 4.05% 2.22% (0.10)% 2.12%
MONTGOMERY SMALL CAP
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $11.76 (1.10)% 1.62% (0.22)% 1.40%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 9.44 (1.13)% 1.69% (0.29)% 1.40%
JULY 1, 2002 TO JUNE 30, 2003 .................... 0.00 $ 8.93 (1.06)% 1.53% (0.13)% 1.40%
JULY 1, 2001 TO JUNE 30, 2002 .................... 0.00 $ 8.61 (0.68)% 1.51% (0.11)% 1.40%
JULY 1, 2000 TO JUNE 30, 2001 .................... 0.00 $11.85 (0.85)% 1.36% 0.00% 1.36%
JULY 1, 1999 TO JUNE 30, 2000 .................... 0.00 $22.20 (1.14)% 1.35% 0.00% 1.35%
JULY 1, 1998 TO JUNE 30, 1999 .................... 0.00 $16.58 (1.09)% 1.32% 0.00% 1.32%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $11.68 (1.83)% 2.38% (0.23)% 2.15%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 9.41 (1.88)% 2.43% (0.28)% 2.15%
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.00 $ 8.93 (1.06)% 2.28% (0.13)% 2.15%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $11.70 (1.82)% 2.38% (0.23)% 2.15%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 9.42 (1.91)% 2.47% (0.32)% 2.15%
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.00 $ 8.93 (1.06)% 2.28% (0.13)% 2.15%
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.00 $11.77 (0.95)% 1.41% (0.21)% 1.20%
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 0.00 $ 9.44 (0.99)% 1.46% (0.26)% 1.20%
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.00 $ 8.94 (1.06)% 1.28% (0.08)% 1.20%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE 000'S OMITTED)
- -------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 24.53% 122% $ 54,541
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 16.42% 49% $ 29,273
JULY 1, 2002 TO JUNE 30, 2003 .................... 5.79% 210% $ 25,784
JULY 1, 2001 TO JUNE 30, 2002 .................... 3.80% 206% $ 22,974
JULY 1, 2000 TO JUNE 30, 2001 .................... (15.26)% 182% $ 10,156
JULY 1, 1999 TO JUNE 30, 2000 .................... 27.91% 264% $ 4,725
APRIL 1, 1999 TO JUNE 30, 1999(9) ................ 36.55% 200% $ 2,551
APRIL 1, 1998 TO MARCH 31, 1999 .................. (14.04)% 437% $ 1,655
MONTGOMERY INSTITUTIONAL EMERGING MARKETS
- -------------------------------------------------------------------------------------------
SELECT CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 29.93% 50% $105,343
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 14.96% 19% $ 82,432
JULY 1, 2002 TO JUNE 30, 2003 .................... 7.71% 80% $ 73,127
JULY 1, 2001 TO JUNE 30, 2002 .................... (1.56)% 99% $ 66,511
JULY 1, 2000 TO JUNE 30, 2001 .................... (24.97)% 171% $ 66,761
JULY 1, 1999 TO JUNE 30, 2000 .................... 20.42% 116% $104,553
JULY 1, 1998 TO JUNE 30, 1999 .................... 9.75% 115% $103,661
MONTGOMERY MID CAP GROWTH
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 20.43% 84% $ 98,394
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 6.71% 55% $ 87,980
JULY 1, 2002 TO JUNE 30, 2003 .................... (1.04)% 142% $ 85,320
JULY 1, 2001 TO JUNE 30, 2002(10) ................ (26.49)% 143% $ 98,526
JULY 1, 2000 TO JUNE 30, 2001(10) ................ (11.76)% 68% $164,497
JULY 1, 1999 TO JUNE 30, 2000(10) ................ 42.46% 63% $224,944
JULY 1, 1998 TO JUNE 30, 1999(10) ................ (4.07)% 76% $382,483
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 19.84% 84% $ 6,991
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 6.62% 55% $ 5,216
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.21% 142% $ 4,599
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 20.08% 84% $ 983
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 6.41% 55% $ 607
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.21% 142% $ 493
MONTGOMERY SMALL CAP
- -------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 24.58% 77% $102,589
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 5.71% 47% $ 83,152
JULY 1, 2002 TO JUNE 30, 2003 .................... 3.72% 169% $ 52,891
JULY 1, 2001 TO JUNE 30, 2002 .................... (26.68)% 152% $ 46,707
JULY 1, 2000 TO JUNE 30, 2001 .................... (21.71)% 117% $ 74,297
JULY 1, 1999 TO JUNE 30, 2000 .................... 34.12% 93% $102,622
JULY 1, 1998 TO JUNE 30, 1999 .................... (4.14)% 71% $113,323
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 24.12% 77% $ 598
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 5.38% 47% $ 114
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.56% 169% $ 30
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 24.20% 77% $ 212
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 5.49% 47% $ 82
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.56% 169% $ 11
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 24.68% 77% $ 3,732
JULY 1, 2003 TO SEPTEMBER 30, 2003(8) ............ 5.59% 47% $ 335
JUNE 9, 2003(3) TO JUNE 30, 2003 ................. 0.67% 169% $ 14
137
WELLS FARGO STOCK 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
- -----------------------------------------------------------------------------------------------------------------------
SIFE SPECIALIZED FINANCIAL SERVICES
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 4.26 0.01 0.57 (0.01) (0.85)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 3.71 0.03 0.56 (0.04) 0.00
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... $ 5.38 0.04 (0.71) (0.04) (0.96)
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... $ 5.80 0.06 (0.24) (0.06) (0.18)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... $ 5.21 0.08 0.96 (0.08) (0.37)
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... $ 6.26 0.07 (0.56) (0.07) (0.49)
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... $ 6.45 0.07 0.24 (0.07) (0.43)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 4.25 0.00 0.57 0.00 (0.85)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 3.71 0.00 0.56 (0.02) 0.00
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... $ 5.38 0.00 (0.71) 0.00 (0.96)
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... $ 5.80 0.01 (0.24) (0.01) (0.18)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... $ 5.21 0.03 0.96 (0.03) (0.37)
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... $ 6.26 0.00 (0.56) 0.00 (0.49)
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... $ 6.45 0.00 0.24 0.00 (0.43)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $ 4.23 0.01 0.57 (0.01) (0.85)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 3.69 0.00 0.56 (0.02) 0.00
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... $ 5.37 0.00 (0.72) 0.00 (0.96)
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... $ 5.79 0.01 (0.24) (0.01) (0.18)
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... $ 5.20 0.02 0.96 (0.02) (0.37)
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... $ 6.24 0.00 (0.55) 0.00 (0.49)
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... $ 6.46 0.00 0.21 0.00 (0.43)
SMALL CAP GROWTH
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $12.97 (0.09) 3.39 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 9.72 (0.13) 3.38 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $13.23 (0.15) (3.36) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $43.48 (0.17) (22.23) 0.00 (7.85)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $26.23 (0.08) 19.88 0.00 (2.55)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... $17.86 (0.18) 9.99 0.00 (1.44)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $12.34 (0.15) 3.23 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 9.33 (0.38) 3.39 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $12.78 (0.23) (3.22) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $42.33 (0.26) (21.66) 0.00 (7.63)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $25.72 (0.14) 19.25 0.00 (2.50)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... $17.64 (0.36) 9.86 0.00 (1.42)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $12.33 (0.14) 3.21 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $ 9.32 (0.24) 3.25 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $12.77 (0.25) (3.20) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $42.31 (0.27) (21.64) 0.00 (7.63)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $25.71 (0.08) 19.18 0.00 (2.50)
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... $17.63 (0.39) 9.89 0.00 (1.42)
INSTITUTIONAL CLASS
October 1, 2003 to March 31, 2004 (Unaudited) .. $13.27 (0.07) 3.47 0.00 0.00
October 1, 2002 to September 30, 2003 .......... $ 9.94 0.00 3.33 0.00 0.00
October 1, 2001 to September 30, 2002 .......... $13.49 (0.14) (3.41) 0.00 0.00
October 1, 2000 to September 30, 2001 .......... $44.27 (0.19) (22.60) 0.00 (7.99)
October 1, 1999 to September 30, 2000 .......... $26.66 (0.13) 20.34 0.00 (2.60)
October 1, 1998 to September 30, 1999 .......... $18.02 (0.28) 10.38 0.00 (1.46)
SMALL CAP OPPORTUNITIES
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. $27.57 (0.04) 5.98 0.00 (0.96)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... $22.70 (0.13) 6.32 0.00 (1.32)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... $26.49 (0.22) (2.05) 0.00 (1.52)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... $29.97 (0.10) (0.91) 0.00 (2.47)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... $20.50 (0.11) 9.58 0.00 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. $20.51 (0.03) 0.02 0.00 0.00
JUNE 1, 1998 TO MAY 31, 1999 ................... $23.61 (0.11) (2.97) 0.00 (0.02)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
138
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
IN EXCESS OF NET ASSET ------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSES NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------------------------------
SIFE SPECIALIZED FINANCIAL SERVICES
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 3.98 0.84% 1.62% (0.27)% 1.35%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 4.26 0.82% 1.59% (0.24)% 1.35%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... 0.00 $ 3.71 0.98% 1.46% (0.12)% 1.34%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... 0.00 $ 5.38 1.15% 1.25% 0.00% 1.25%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... 0.00 $ 5.80 1.48% 1.25% 0.00% 1.25%
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... 0.00 $ 5.21 1.07% 1.25% 0.00% 1.25%
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... 0.00 $ 6.26 1.04% 1.25% 0.00% 1.25%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 3.97 0.09% 2.37% (0.27)% 2.10%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 4.25 0.07% 2.45% (0.35)% 2.10%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... 0.00 $ 3.71 0.17% 2.48% (0.35)% 2.13%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... 0.00 $ 5.38 0.16% 2.25% 0.00% 2.25%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... 0.00 $ 5.80 0.50% 2.25% 0.00% 2.25%
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... 0.00 $ 5.21 0.06% 2.25% 0.00% 2.25%
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... 0.00 $ 6.26 0.00% 2.25% 0.00% 2.25%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $ 3.95 0.09% 2.38% (0.28)% 2.10%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $ 4.23 0.07% 2.55% (0.45)% 2.10%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... 0.00 $ 3.69 0.17% 2.74% (0.61)% 2.13%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... 0.00 $ 5.37 0.16% 2.25% 0.00% 2.25%
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... 0.00 $ 5.79 0.50% 2.25% 0.00% 2.25%
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... 0.00 $ 5.20 0.06% 2.25% 0.00% 2.25%
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... 0.00 $ 6.24 0.00% 2.25% 0.00% 2.25%
SMALL CAP GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $16.27 (1.14)% 1.60% (0.15)% 1.45%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $12.97 (1.03)% 1.85% (0.42)% 1.43%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 9.72 (1.06)% 1.74% (0.34)% 1.40%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $13.23 (0.86)% 1.61% (0.25)% 1.36%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $43.48 (0.78)% 1.86% (0.57)% 1.29%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 0.00 $26.23 (0.92)% 1.53% (0.18)% 1.35%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $15.42 (1.88)% 2.35% (0.15)% 2.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $12.34 (1.78)% 3.11% (0.93)% 2.18%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 9.33 (1.81)% 3.04% (0.89)% 2.15%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $12.78 (1.60)% 2.32% (0.22)% 2.10%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $42.33 (1.53)% 2.72% (0.68)% 2.04%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 0.00 $25.72 (1.67)% 2.29% (0.20)% 2.09%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $15.40 (1.89)% 2.35% (0.15)% 2.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $12.33 (1.78)% 2.74% (0.56)% 2.18%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $ 9.32 (1.81)% 2.66% (0.51)% 2.15%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $12.77 (1.60)% 2.18% (0.08)% 2.10%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $42.31 (1.53)% 2.44% (0.40)% 2.04%
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 0.00 $25.71 (1.68)% 2.68% (0.58)% 2.10%
INSTITUTIONAL CLASS
October 1, 2003 to March 31, 2004 (Unaudited) .. 0.00 $16.67 (0.88)% 1.37% (0.17)% 1.20%
October 1, 2002 to September 30, 2003 .......... 0.00 $13.27 (0.81)% 1.56% (0.36)% 1.20%
October 1, 2001 to September 30, 2002 .......... 0.00 $ 9.94 (0.86)% 1.36% (0.16)% 1.20%
October 1, 2000 to September 30, 2001 .......... 0.00 $13.49 (0.71)% 1.27% (0.07)% 1.20%
October 1, 1999 to September 30, 2000 .......... 0.00 $44.27 (0.68)% 1.43% (0.23)% 1.20%
October 1, 1998 to September 30, 1999 .......... 0.00 $26.66 (0.38)% 1.29% (0.53)% 0.76%
SMALL CAP OPPORTUNITIES
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 0.00 $32.55 (0.25)% 1.30% (0.10)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 0.00 $27.57 (0.57)% 1.31% (0.11)% 1.20%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... 0.00 $22.70 (0.81)% 1.27% (0.02)% 1.25%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... 0.00 $26.49 (0.37)% 1.33% (0.08)% 1.25%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 0.00 $29.97 (0.45)% 1.28% (0.03)% 1.25%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. 0.00 $20.50 (0.44)% 1.29% (0.04)% 1.25%
JUNE 1, 1998 TO MAY 31, 1999 ................... 0.00 $20.51 (0.47)% 1.35%(4) (0.10)%(4) 1.25%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
- ------------------------------------------------------------------------------------------
SIFE SPECIALIZED FINANCIAL SERVICES
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 15.11% 81% $ 537,606
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 16.12% 356% $ 512,466
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... (12.95)% 187% $ 509,614
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... (2.90)% 11% $ 679,747
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... 21.00% 16% $ 780,213
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... (8.50)% 25% $ 862,539
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... 5.10% 31% $1,132,041
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 14.75% 81% $ 16,552
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 15.21% 356% $ 20,465
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... (13.51)% 187% $ 20,986
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... (3.90)% 11% $ 24,732
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... 19.80% 16% $ 26,965
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... (9.40)% 25% $ 31,250
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... 4.10% 31% $ 39,294
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 14.81% 81% $ 2,215
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 15.30% 356% $ 1,937
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 .......... (13.77)% 187% $ 1,793
JANUARY 1, 2001 TO DECEMBER 31, 2001 ........... (3.90)% 11% $ 2,071
JANUARY 1, 2000 TO DECEMBER 31, 2000 ........... 19.80% 16% $ 2,139
JANUARY 1, 1999 TO DECEMBER 31, 1999 ........... (9.30)% 25% $ 3,197
JANUARY 1, 1998 TO DECEMBER 31, 1998 ........... 3.60% 31% $ 3,551
SMALL CAP GROWTH
- ------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 25.44% 85% $ 70,189
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 33.44% 201% $ 55,862
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (26.53)% 221% $ 74,937
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (59.99)% 250% $ 101,201
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 81.03% 263% $ 203,164
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 58.81% 249% $ 16,662
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 24.96% 85% $ 28,933
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 32.26% 201% $ 27,842
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (27.00)% 221% $ 28,360
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (60.30)% 250% $ 44,832
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 79.74% 263% $ 116,520
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 57.66% 249% $ 18,718
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 24.90% 85% $ 11,476
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 32.30% 201% $ 9,356
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (27.02)% 221% $ 7,742
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (60.31)% 250% $ 10,856
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 79.72% 263% $ 28,018
OCTOBER 1, 1998 TO SEPTEMBER 30, 1999 .......... 57.69% 249% $ 1,711
INSTITUTIONAL CLASS
October 1, 2003 to March 31, 2004 (Unaudited) .. 25.62% 85% $ 55,893
October 1, 2002 to September 30, 2003 .......... 33.50% 201% $ 54,431
October 1, 2001 to September 30, 2002 .......... (26.32)% 221% $ 67,284
October 1, 2000 to September 30, 2001 .......... (59.93)% 250% $ 96,626
October 1, 1999 to September 30, 2000 .......... 81.35% 263% $ 186,315
October 1, 1998 to September 30, 1999 .......... 59.98% 249% $ 22,023
SMALL CAP OPPORTUNITIES
- ------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .. 21.85% 62% $ 494,790
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .......... 28.47% 152% $ 381,786
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .......... (9.81)% 97% $ 294,880
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .......... (3.46)% 117% $ 283,154
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .......... 46.20% 165% $ 271,936
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............. (0.05)% 40% $ 195,283
JUNE 1, 1998 TO MAY 31, 1999 ................... (13.02)% 119%(5) $ 201,816
139
WELLS FARGO STOCK 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
- ----------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH
CLASS A
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... $28.42 (0.03) (0.12) 0.00 0.00
CLASS B
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... $28.42 (0.06) (0.12) 0.00 0.00
CLASS C
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... $28.42 (0.06) (0.13) 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $23.87 (0.13) 4.54 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $17.35 (0.13) 6.65 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $21.73 (0.16) (4.22) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $36.22 (0.10) (7.26) 0.00 (7.13)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $27.03 (0.22) 9.41 0.00 0.00
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. $27.44 (0.05) (0.36) 0.00 0.00
JUNE 1, 1998 TO MAY 1, 1999 ......................... $33.69 (0.15) (3.67) 0.00 (2.43)
SMALL COMPANY VALUE
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $11.56 (0.02) 2.33 0.00 (0.48)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 8.43 0.00 3.13 0.00 0.00
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... $10.00 0.00 (1.57) 0.00 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $11.41 (0.05) 2.28 0.00 (0.48)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 8.38 (0.06) 3.09 0.00 0.00
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... $10.00 (0.03) (1.59) 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $11.41 (0.04) 2.26 0.00 (0.48)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 8.38 (0.04) 3.07 0.00 0.00
AUGUST 30, 2002(3) TO SEPTEMBER 30, 2002 ............ $ 9.05 0.00 (0.67) 0.00 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $11.60 (0.01) 2.33 0.00 (0.48)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 8.44 0.01 3.15 0.00 0.00
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... $10.00 0.01 (1.57) 0.00 0.00
SPECIALIZED HEALTH SCIENCES
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $ 9.51 (0.05) 1.39 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 7.81 (0.08) 1.78 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $ 9.70 (0.10) (1.79) 0.00 0.00
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. $10.00 (0.03) (0.27) 0.00 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $ 9.32 (0.10) 1.39 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 7.72 (0.16) 1.76 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $ 9.66 (0.17) (1.77) 0.00 0.00
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. $10.00 (0.06) (0.28) 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $ 9.33 (0.10) 1.39 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 7.73 (0.16) 1.76 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $ 9.66 (0.18) (1.75) 0.00 0.00
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. $10.00 (0.06) (0.28) 0.00 0.00
SPECIALIZED TECHNOLOGY
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $ 3.93 (0.03) 0.50 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 2.23 0.02 1.68 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $ 3.02 (0.06) (0.73) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $10.11 (0.02) (7.07) 0.00 0.00
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... $10.00 0.00 0.11 0.00 0.00
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $ 3.85 (0.05) 0.48 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 2.19 (0.06) 1.72 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $ 3.00 (0.08) (0.73) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $10.11 (0.06) (7.05) 0.00 0.00
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... $10.00 0.00 0.11 0.00 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $ 3.84 (0.05) 0.48 0.00 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 2.19 (0.06) 1.71 0.00 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $ 3.00 (0.08) (0.73) 0.00 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $10.11 (0.06) (7.05) 0.00 0.00
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... $10.00 0.00 0.11 0.00 0.00
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
140
FINANCIAL HIGHLIGHTS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSETS
REALIZED VALUE PER
GAINS SHARE
- ----------------------------------------------------------------------------------
SMALL COMPANY GROWTH
CLASS A
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $28.27
CLASS B
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $28.24
CLASS C
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $28.23
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $28.28
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $23.87
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $17.35
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... 0.00 $21.73
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 0.00 $36.22
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. 0.00 $27.03
JUNE 1, 1998 TO MAY 1, 1999 ......................... 0.00 $27.44
SMALL COMPANY VALUE
- ----------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $13.39
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $11.56
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... 0.00 $ 8.43
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $13.16
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $11.41
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... 0.00 $ 8.38
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $13.15
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $11.41
AUGUST 30, 2002(3) TO SEPTEMBER 30, 2002 ............ 0.00 $ 8.38
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $13.44
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $11.60
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... 0.00 $ 8.44
SPECIALIZED HEALTH SCIENCES
- ----------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $10.85
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 9.51
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 7.81
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. 0.00 $ 9.70
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $10.61
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 9.32
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 7.72
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. 0.00 $ 9.66
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $10.62
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 9.33
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 7.73
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. 0.00 $ 9.66
SPECIALIZED TECHNOLOGY
- ----------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $ 4.40
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 3.93
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 2.23
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... 0.00 $ 3.02
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... 0.00 $10.11
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $ 4.28
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 3.85
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 2.19
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... 0.00 $ 3.00
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... 0.00 $10.11
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $ 4.27
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 3.84
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 2.19
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... 0.00 $ 3.00
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... 0.00 $10.11
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
----------------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH
CLASS A
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... (1.05)% 1.47%(4) (0.02)%(4) 1.45%(4)
CLASS B
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... (1.81)% 2.23%(4) (0.03)%(4) 2.20%(4)
CLASS C
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... (1.82)% 2.24%(4) (0.04)%(4) 2.20%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (0.98)% 1.21%(4) (0.01)%(4) 1.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.65)% 1.34%(4) (0.13)%(4) 1.21%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (0.68)% 1.25%(4) (0.03)%(4) 1.22%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (0.44)% 1.21%(4) 0.00%(4) 1.21%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (0.59)% 1.27%(4) (0.02)%(4) 1.25%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. (0.52)% 1.30%(4) (0.05)%(4) 1.25%(4)
JUNE 1, 1998 TO MAY 1, 1999 ......................... (0.52)% 1.30%(4) (0.05)%(4) 1.25%(4)
SMALL COMPANY VALUE
- ------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (0.27)% 1.67%(4) (0.22)%(4) 1.45%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.06% 1.43%(4) 0.00%(4) 1.43%(4)
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... 0.00% 2.32%(4) (0.94)%(4) 1.38%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (1.04)% 2.47%(4) (0.27)%(4) 2.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.67)% 2.18%(4) 0.00%(4) 2.18%(4)
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... (0.74)% 3.46%(4) (1.32)%(4) 2.14%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (1.03)% 2.44%(4) (0.24)%(4) 2.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.80)% 2.18%(4) 0.00%(4) 2.18%(4)
AUGUST 30, 2002(3) TO SEPTEMBER 30, 2002 ............ 0.68% 7.48%(4) (5.28)%(4) 2.20%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (0.04)% 1.48%(4) (0.28)%(4) 1.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.21% 1.21%(4) 0.00%(4) 1.21%(4)
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... 0.34% 3.58%(4) (2.35)%(4) 1.23%(4)
SPECIALIZED HEALTH SCIENCES
- ------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (1.13)% 1.84% (0.19)% 1.65%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.02)% 2.25% (0.60)% 1.65%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.07)% 1.92% (0.27)% 1.65%
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. (0.95)% 2.66% (1.01)% 1.65%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (1.88)% 2.59% (0.19)% 2.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.77)% 3.06% (0.66)% 2.40%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.82)% 2.87% (0.47)% 2.40%
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. (1.67)% 3.46% (1.06)% 2.40%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (1.88)% 2.59% (0.19)% 2.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.77)% 3.18% (0.78)% 2.40%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.82)% 3.03% (0.63)% 2.40%
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. (1.71)% 3.99% (1.59)% 2.40%
SPECIALIZED TECHNOLOGY
- ------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (1.54)% 1.79% (0.04)% 1.75%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.45)% 1.98% (0.23)% 1.75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.37)% 2.47% (0.72)% 1.75%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (0.47)% 2.00% (0.25)% 1.75%
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... (0.13)% 2.02% (0.27)% 1.75%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (2.29)% 2.53% (0.03)% 2.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (2.10)% 3.08% (0.58)% 2.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (2.12)% 3.46% (0.96)% 2.50%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (1.24)% 2.72% (0.22)% 2.50%
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... (0.88)% 2.77% (0.27)% 2.50%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (2.30)% 2.53% (0.03)% 2.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (2.10)% 2.91% (0.41)% 2.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (2.12)% 3.16% (0.66)% 2.50%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (1.22)% 2.66% (0.16)% 2.50%
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... (0.90)% 2.77% (0.27)% 2.50%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000's OMITTED)
- --------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH
CLASS A
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... 18.38% 77%(5) $ 103
CLASS B
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... 17.96% 77%(5) $ 26
CLASS C
JANUARY 30, 2004(3) TO MARCH 31, 2004 (UNAUDITED) ... 17.92% 77%(5) $ 25
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 18.48% 77%(5) $521,705
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 37.58% 163%(5) $432,328
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (20.16)% 169%(5) $329,964
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (23.33)% 206%(5) $431,695
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 34.00% 203%(5) $603,584
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. (1.49)% 55%(5) $515,292
JUNE 1, 1998 TO MAY 1, 1999 ......................... 10.72)% 154%(5) $557,516
SMALL COMPANY VALUE
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 20.33% 24%(5) $ 20,907
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 37.20% 80%(5) $ 8,783
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... (15.70)% 98%(5) $ 4,276
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 19.88% 24%(5) $ 10,625
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 36.23% 80%(5) $ 7,520
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... (16.20)% 98%(5) $ 4,860
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 19.79% 24%(5) $ 2,540
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 36.23% 80%(5) $ 1,497
AUGUST 30, 2002(3) TO SEPTEMBER 30, 2002 ............ (7.40)% 98%(5) $ 59
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 20.36% 24%(5) $ 51,439
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 37.51% 80%(5) $ 33,583
JANUARY 31, 2002(3) TO SEPTEMBER 30, 2002 ........... (15.60)% 98%(5) $ 5,465
SPECIALIZED HEALTH SCIENCES
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 14.09% 96% $ 14,016
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 21.77% 150% $ 12,805
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (19.48)% 138% $ 12,217
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. (3.00)% 48% $ 12,331
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 13.84% 96% $ 18,542
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 20.73% 150% $ 17,150
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (20.08)% 138% $ 15,576
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. (3.40)% 48% $ 16,320
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 13.83% 96% $ 2,549
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 20.70% 150% $ 2,323
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (19.98)% 138% $ 2,051
APRIL 2, 2001(3) TO SEPTEMBER 30, 2001 .............. (3.40)% 48% $ 2,277
SPECIALIZED TECHNOLOGY
- --------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 11.96% 117% $118,571
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 76.23% 276% $110,730
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (26.16)% 388% $ 13,559
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (70.13)% 773% $ 22,946
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... 1.10% 7% $ 42,626
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 11.17% 117% $ 33,650
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 75.80% 276% $ 31,758
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (27.00)% 388% $ 20,949
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (70.33)% 773% $ 34,218
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... 1.10% 7% $ 52,958
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 11.20% 117% $ 6,598
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 75.34% 276% $ 7,076
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (27.00)% 388% $ 4,295
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (70.33)% 773% $ 7,320
SEPTEMBER 18, 2000(3) TO SEPTEMBER 30, 2000 ......... 1.10% 7% $ 14,176
141
WELLS FARGO STOCK 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
periods shown. Returns for periods less than one year are not annualized.
(3) Commencement of operations.
(4) Includes expenses allocated from the Portfolio(s) in which the Fund
invests.
(5) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
(6) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio
by the corresponding Portfolio's portfolio turnover rate.
(7) Calculated based upon average shares outstanding.
(8) The Fund changed its year end from June 30 to September 30.
(9) The Fund changed its year end from March 31 to June 30.
(10) Per share numbers have been adjusted to reflect a 2.0103 to 1 stock split.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
142
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK 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 (each, a "Fund",
collectively, the "Funds"). These financial statements present the Diversified
Equity Fund, Diversified Small Cap Fund, Equity Income Fund, Equity Index Fund,
Growth Fund, Growth Equity Fund, Index Fund, International Equity Fund, Large
Cap Appreciation Fund, Large Cap Value Fund, Large Company Growth Fund,
Montgomery Emerging Markets Focus Fund, Montgomery Institutional Emerging
Markets Fund, Montgomery Mid Cap Growth Fund, Montgomery Small Cap Fund, SIFE
Specialized Financial Services Fund, Small Cap Growth Fund, Small Cap
Opportunities Fund, Small Company Growth Fund, Small Company Value Fund,
Specialized Health Sciences Fund, and Specialized Technology Fund. Each Fund,
except for the Specialized Health Sciences Fund and the Specialized Technology
Fund, is a diversified series of the Trust. The Specialized Health Sciences Fund
and the Specialized Technology Fund are non-diversified series of the Trust.
On December 18, 2002, the Board of Trustees of the Trust and on December
16, 2002, the Boards of Trustees of The Montgomery Funds and The Montgomery
Funds II (the "Montgomery Funds"), approved an Agreement and Plan of
Reorganization providing for the reorganization of certain of the Montgomery
Funds into the Funds.
Effective at the close of business on June 6, 2003, the Wells Fargo
Montgomery Emerging Markets Focus Fund acquired all of the net assets of the
Montgomery Emerging Markets Fund and Montgomery Emerging Markets Focus Fund. The
Montgomery Emerging Markets Fund exchanged its 12,318,224 shares (valued at
$108,543,966) for 7,292,595 shares of the Wells Fargo Montgomery Emerging
Markets Focus Fund. The Montgomery Emerging Markets Focus Fund exchanged its
1,711,778 shares (valued at $25,284,108) for 1,710,914 shares of the Wells Fargo
Montgomery Emerging Markets Focus Fund. The net assets of the Montgomery
Emerging Markets Fund and Montgomery Emerging Markets Focus Fund included
unrealized appreciation of $9,505,328 and $2,838,430, respectively.
Effective at the close of business on June 6, 2003, the Wells Fargo
Montgomery Mid Cap Growth Fund acquired all of the net assets of the Wells Fargo
Mid Cap Growth Fund. The Wells Fargo Mid Cap Growth Fund exchanged its 2,054,687
shares (valued at $9,692,238) for 18,956,825 shares of the Wells Fargo
Montgomery Mid Cap Growth Fund. The net assets of the Wells Fargo Mid Cap Growth
Fund included unrealized appreciation of $1,179,303.
Effective at the close of business on June 6, 2003, the Wells Fargo
Specialized Technology Fund acquired all of the net assets of the Montgomery
Global Tech, Telecom and Media Fund. The Montgomery Global Tech, Telecom and
Media Fund exchanged its 9,437,260 shares (valued at $77,163,322) for 23,350,424
Class A shares of the Wells Fargo Specialized Technology Fund. The net assets of
the Montgomery Global Tech, Telecom and Media Fund included unrealized
appreciation of $7,481,476.
Effective at the close of business on June 6, 2003, the Wells Fargo Large
Company Growth Fund acquired all of the net assets of the Montgomery Growth
Fund. The Montgomery Growth Fund exchanged its 13,690,585 shares (valued at
$137,747,283) for 3,227,013 Class A shares of the Wells Fargo Large Company
Growth Fund. The net assets of the Montgomery Growth Fund included unrealized
appreciation of $2,612,042.
Effective at the close of business on June 6, 2003, the Wells Fargo
International Equity Fund acquired all of the net assets of the Montgomery
International Growth Fund. The Montgomery International Growth Fund exchanged
its 2,582,160 shares (valued at $24,589,432) for 2,587,232 Class A shares of the
Wells Fargo International Equity Fund. The net assets of the Montgomery
International Growth Fund included unrealized appreciation of $1,141,158.
Effective at the close of business on June 6, 2003, the Equity Income Fund
acquired all of the net assets of the Equity Value Fund. The Equity Value Fund
Class A exchanged 1,869,407 shares (valued at $15,101,853) for 482,018 Class A
shares of the Equity Income Fund. The Equity Value Fund Class B exchanged
3,219,004 shares (valued at $21,054,936) for 672,254 Class B shares of the
Equity Income Fund. The Equity Value Fund Class C exchanged 103,826 shares
(valued at $678,264) for 21,019 Class C shares of the Equity Income Fund. The
Equity Value Fund Institutional Class exchanged 3,540,583 shares (valued at
$28,549,983) for 912,354 Institutional Class shares of the Equity Income Fund.
The net assets of the Equity Value Fund included unrealized depreciation of
$3,243,478.
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
143
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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.
The Diversified Equity Fund, Diversified Small Cap Fund, Equity Income
Fund, Growth Equity Fund, Index Fund, Large Cap Appreciation Fund, Large Cap
Value Fund, Large Company Growth Fund, Small Company Growth Fund, and Small
Company Value Fund each seek to achieve its investment objective by investing
all investable assets in one or more separate diversified portfolios (each, a
"Master Portfolio", collectively, the "Master Portfolios") of Wells Fargo Master
Trust, a registered open-end management investment company. Each Master
Portfolio directly acquires portfolio securities, and a Fund investing in a
Master Portfolio acquires an indirect interest in those securities. Each Fund
accounts for its investment in the Master Portfolios as partnership investments
and records daily its share of the Master Portfolio's income, expenses, and
realized and unrealized gains and losses. The financial statements of the Master
Portfolios are in this report and should be read in conjunction with each Fund's
financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, 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.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
If trading or events occurring in other markets after the close of the principal
exchange in which the foreign investments are traded are expected to materially
affect the value of the investments, then those investments are fair valued
following procedures approved by the Board of Trustees.
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 in the Master Portfolios are valued at their net asset value
at the close of business each day. Securities held in the Master Portfolios are
valued as discussed in the Notes to Financial Statements of the Master
Portfolios, which are included elsewhere in this report.
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.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
144
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting from changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the
changes in net assets resulting from changes in market prices of securities at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually, with the exception of the Equity Income Fund and the SIFE Specialized
Financial Services Fund, for which net investment income, if any, is declared
and distributed quarterly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
dividends the earnings and profits distributed to shareholders on the redemption
of fund shares during the year.
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
Each Fund 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 March 31, 2004.
At September 30, 2003, estimated net capital loss carryforwards which are
available to offset future net realized capital gains were:
Capital Loss
Fund Year Expires Carryforward
DIVERSIFIED EQUITY FUND 2010 $13,278,866
2011 25,153,647
DIVERSIFIED SMALL CAP FUND 2011 20,369,860
GROWTH FUND 2008 4,522,230
2008 14,554
2009 3,235,802
2010 34,534,875
2011 35,299,099
GROWTH EQUITY FUND 2010 16,713,996
2011 13,212,492
INDEX FUND 2010 12,406,176
2011 32,325,753
INTERNATIONAL EQUITY FUND 2008 3,627,461
2008 1,293,393
2009 43,560,810
2009 746,353
145
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES (CONTINUED)
Capital Loss
Fund Year Expires Carryforward
INTERNATIONAL EQUITY FUND (CONTINUED) 2009 $ 5,464,387
2010 22,991,800
2010 1,069,640
2011 44,467,380
LARGE CAP APPRECIATION FUND 2011 1,301,472
LARGE COMPANY GROWTH FUND 2010 91,866,464
2011 244,482,638
MONTGOMERY EMERGING MARKET FOCUS FUND 2005 58,594,720
2006 381,957
2006 199,540,290
2007 564,613
2007 22,330,736
2008 12,099
2008 2,626,152
2009 1,755,484
2009 39,666,741
2010 665,441
2010 14,306,463
MONTGOMERY INSTITUTIONAL EMERGING MARKET FUND 2006 41,400,275
2009 13,476,505
2010 6,538,143
MONTGOMERY MID CAP GROWTH FUND 2010 1,860,603
2010 14,752,101
MONTGOMERY SMALL CAP FUND 2009 6,887,908
2010 8,702,694
SMALL CAP GROWTH FUND 2006 9,080,292
2007 1,513,382
2009 8,121,572
2010 202,147,448
2011 94,117,124
SMALL COMPANY GROWTH FUND 2010 57,281,273
2011 79,612,920
SMALL COMPANY VALUE FUND 2011 1,094,871
SPECIALIZED HEALTH SCIENCES FUND 2010 317,612
2011 6,485,858
146
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES (CONTINUED)
Capital Loss
Fund Year Expires Carryforward
SPECIALIZED TECHNOLOGY FUND 2008 $ 32,548,533
2009 145,715,707
2009 6,537,652
2010 45,977,903
2010 9,481,638
At September 30, 2003, current year deferred post-October capital losses,
which will be treated as realized for tax purposes on the first day of the
succeeding year were:
Deferred Post-October
Fund Capital Loss
DIVERSIFIED EQUITY FUND $ 4,695,108
GROWTH EQUITY FUND 28,216,341
INDEX FUND 7,734,171
INTERNATIONAL EQUITY FUND 67,553,115
LARGE CAP APPRECIATION FUND 425,311
LARGE COMPANY GROWTH FUND 29,372,243
SMALL CAP GROWTH FUND 10,773,175
SPECIALIZED HEALTH SCIENCES FUND 229,405
The capital loss carryforwards may include capital losses acquired from a
merger as discussed in Note 1.
The yearly utilization of any acquired capital loss is limited by the
Code.
FORWARD FOREIGN CURRENCY CONTRACTS
The Fund(s) may enter into foreign currency forward contracts to protect
against a possible loss resulting from an adverse change in the relationship
between foreign currencies and the U.S. dollar, or between foreign currencies. A
forward contract is an agreement between two counterparties for future delivery
or receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses.
FUTURES CONTRACTS
The Fund(s) may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the entire value of the
underlying contracts. Risks of entering into futures contracts include the
possibility that there may be an illiquid market and that a change in the value
of the contract may not correlate with changes in the value of the underlying
securities. At March 31, 2004, the following Fund(s) held futures contracts:
Notional Net Unrealized
Contract Appreciation
Fund Contracts Type Expiration Date Value (Depreciation)
EQUITY INDEX FUND 31 Long S&P 500 Index June 2004 8,717,975 (52,475)
147
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENTS SOLD SHORT
Certain Funds may engage in short-selling to the extent permitted by the
Fund's investment policies in attempting to increase investment return. In a
short sale transaction, the Fund borrows a security which it then delivers to
settle a sale. The Fund is obligated to replace the security borrowed by
purchasing the security at current market value at a future date. The Fund will
incur a loss if the price of the security increases between the date of the
short sale and the date on which the Fund replaces the borrowed security. The
Fund realizes a gain if the price of the security declines between those dates.
Until the Fund replaces the borrowed security, it will maintain daily, a
segregated account with a broker and /or custodian, of cash and /or other liquid
securities sufficient to cover its short position. Securities sold short at
March 31, 2004, if any, and their related market values and proceeds are set
forth in the Schedule of Investments Sold Short.
REPURCHASE AGREEMENTS
The Fund(s) may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other funds advised by Wells Fargo
Funds Management, LLC. The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the custodian's responsibility
to value collateral daily and to take action to obtain additional collateral as
necessary to maintain market value equal to or greater than the resale price.
The repurchase agreements are collateralized by instruments such as U.S.
Treasury, federal agency, or high-grade corporate obligations. There could be
potential loss to a Fund in the event that such Fund is delayed or prevented
from exercising its rights to dispose of the collateral, including the risk of a
possible decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
SECURITY LOANS
The Fund(s) may loan securities in return for securities and cash
collateral, which is invested in various short-term fixed income securities. A
Fund may receive compensation for lending securities in the form of fees or by
retaining a portion of interest on the investment securities or cash received as
collateral. A Fund also continues to receive interest or dividends on the
securities loaned. Security loans are secured at all times by collateral. The
collateral is equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered into. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the loan
are reflected in the value of the Fund. The risks from securities lending are
that the borrower may not provide additional collateral when required or return
the securities when due or when called for by the Fund. Wells Fargo Bank, N.A.,
the Funds' custodian, acts as the securities lending agent for the Funds and
receives for its services 40% of the revenues earned on the securities lending
activities and incurs all expenses. The value of the securities on loan and the
value of the related collateral at March 31, 2004 are shown on the Statement of
Assets and Liabilities.
At March 31, 2004, cash collateral was invested as follows:
Money
Repurchase Short-Term Mid-Term Market
Fund Agreements Securities Securities Fund Total
EQUITY INDEX FUND 18% 65% 15% 2% 100%
GROWTH FUND 16% 39% 43% 2% 100%
INTERNATIONAL EQUITY FUND 23% 69% 7% 1% 100%
MONTGOMERY EMERGING MARKETS FOCUS FUNDS 26% 64% 7% 3% 100%
MONTGOMERY INSTITUTIONAL EMERGING
MARKETS FUND 30% 60% 7% 3% 100%
MONTGOMERY MID CAP GROWTH FUND 25% 69% 5% 1% 100%
MONTGOMERY SMALL CAP FUND 30% 59% 8% 3% 100%
SIFE SPECIALIZED FINANCIAL SERVICES FUND 9% 47% 43% 1% 100%
SMALL CAP GROWTH FUND 26% 58% 13% 3% 100%
SMALL CAP OPPORTUNITIES FUND 24% 60% 13% 3% 100%
SPECIALIZED HEALTH SCIENCES FUND 19% 73% 5% 3% 100%
SPECIALIZED TECHNOLOGY FUND 23% 66% 8% 3% 100%
148
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
WRITTEN OPTIONS
An option is a right to buy or sell a particular security at a specified
price within a limited period of time. The writer of the option, in return for a
premium received from the seller, has the obligation to sell (in the case of a
call option) or buy (in the case of a put option) the underlying security of the
contract. The premium received in cash from writing options is recorded as an
asset with an equal liability that is adjusted to reflect the option's value.
The premium received from writing options which expire is recorded as realized
gains. The premium received from writing options which are exercised or closed
is offset against the proceeds or amount paid on the closing transaction to
determine the realized gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased. Options are valued
based on their quoted daily settlement prices.
Risks could arise from entering into written options transactions from the
potential inability of counterparties to meet the terms of their contracts, the
potential inability to enter into a closing transaction because of an illiquid
secondary market, and from unexpected movements in interest or exchange rates or
securities values.
Written options transactions during the six months ended March 31, 2004,
were as follows:
SPECIALIZED SIFE SPECIALIZED
TECHNOLOGY FUND FINANCIAL SERVICES FUND
Principal Principal
Amount Premiums Amount Premiums
of Contracts Received of Contracts Received
Call Options Written
OPTIONS AT BEGINNING OF PERIOD 0 0 3,000 400,981
OPTIONS WRITTEN 770 263,308 9,000 919,389
OPTIONS TERMINATED IN CLOSING TRANSACTIONS (385) (160,537) (8,000) (951,455)
OPTIONS EXPIRED 0 0 0 0
OPTIONS EXERCISED 0 0 0 0
OPTIONS AT END OF PERIOD 385 102,771 4,000 368,915
Put Options Written
OPTIONS AT BEGINNING OF PERIOD 0 0 0 0
OPTIONS WRITTEN 3,413 901,694 1,000 78,496
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 0 0 (1,000) (78,496)
OPTIONS EXPIRED 0 0 0 0
OPTIONS EXERCISED 0 0 0 0
OPTIONS AT END OF PERIOD 3,413 901,694 0 0
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and, if applicable, for
supervising the sub-adviser responsible for day-to-day portfolio management.
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. The fees related to sub-advisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment sub-adviser(s) are entitled to be paid a
monthly fee at the following annual rates:
149
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Advisory Fees Sub-Advisory Fee
(% of Average Daily Average Daily Net (% of Average Daily
Fund Net Assets) Sub-Adviser Assets Net Assets)
EQUITY INDEX FUND* 0.15 Wells Capital $0 - 200 million 0.02
Management Incorporated > $200 million 0.01
GROWTH FUND 0.75 Wells Capital $0 - 200 million 0.25
Management $200 - 400 million 0.20
Incorporated > $400 million 0.15
INTERNATIONAL EQUITY FUND 1.00 Wells Capital $0 - 200 million 0.35
Management Incorporated > $200 million 0.25
MONTGOMERY EMERGING 1.10 Wells Capital $0 - 200 million 0.35
MARKETS FOCUS FUND Management Incorporated > $200 million 0.25
MONTGOMERY INSTITUTIONAL 1.10 Wells Capital $0 - 200 million 0.35
EMERGING MARKETS FUND Management Incorporated > $200 million 0.25
MONTGOMERY MID CAP 0.75 Wells Capital $0 - 200 million 0.25
GROWTH FUND Management Incorporated > $200 million 0.20
MONTGOMERY 0.90 Wells Capital $0 - 200 million 0.25
SMALL CAP FUND Management Incorporated > $200 million 0.20
SIFE SPECIALIZED FINANCIAL 0.95 Wells Capital $0 - 200 million 0.25
SERVICES FUND Management $200 - 400 million 0.20
Incorporated > $400 million 0.15
SMALL CAP GROWTH FUND 0.90 Wells Capital $0 - 200 million 0.25
Management Incorporated > $200 million 0.20
SMALL CAP 0.90 Schroder Investment
Management $0 - 275 million 0.50
OPPORTUNITIES FUND North America Incorporated > $275 million 0.45
SPECIALIZED HEALTH 0.95 RCM Capital $0 - 100 million 0.95
SCIENCES FUND Management LLC $100 - 500 million 0.65
> $500 million 0.60
SPECIALIZED TECHNOLOGY FUND 1.05 RCM Capital $0 - 50 million 1.00
Management LLC $50 - 100 million 0.70
> $100 million 0.55
*Effective February 1, 2004, the Equity Index Fund reduced its advisory fee from
0.25% to 0.15%.
For each Fund that is invested in multiple Master Portfolios, Funds
Management is entitled to receive an investment advisory fee of 0.25% of each
Fund's average daily net assets for providing advisory services, including the
determination of the asset allocations of each Fund's investments in the various
Master Portfolios.
For each Fund that invests all of its assets in single Master Portfolios,
Funds Management does not currently receive investment advisory fees. Funds
Management acts as adviser to the Master Portfolios, and is entitled to receive
fees from the Master Portfolios for those services.
Each Fund that invests its assets in one or more of the Master Portfolios
may withdraw its investments from its corresponding Master Portfolio(s) at any
time if the Board of Trustees determines that it is in the best interest of the
Fund to do so. Upon such redemption and subsequent direct investment in a
portfolio of securities, Funds Management (and the corresponding sub-adviser, if
any) may receive an investment advisory fee for the direct management of those
assets.
For the period from January 17, 2003 through June 8, 2003, Wells Capital
Management served as the investment adviser to each predecessor portfolio of the
Montgomery Emerging Markets Focus, Montgomery Institutional Emerging Markets,
Montgomery Mid Cap Growth and Montgomery Small Cap Funds (the "Wells Fargo
Montgomery Funds") pursuant to an interim investment management agreement. Prior
to January 17, 2003, Montgomery Asset Management, LLC ("MAM") served as the
investment adviser for each of the predecessor portfolios of the Wells Fargo
Montgomery Funds. Under the interim agreement with Wells Capital Management, the
contractual investment advisory fees were the same as those under the prior
agreement with MAM. The fees were as follows:
150
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
Advisory Fees
Average Daily Net (% of Average
Fund Assets Daily Net Assets)
MONTGOMERY EMERGING MARKETS FOCUS FUND $ 0 - 250 million 1.10
$250 - 500 million 1.00
>$ 500 million 0.90
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND $ 0 - 50 million 1.25
$ 50 - 100 million 1.00
>$ 100 million 0.90
MONTGOMERY MID CAP GROWTH FUND $ 0 - 200 million 1.40
>$ 200 million 1.25
MONTGOMERY SMALL CAP FUND $ 0 - 250 million 1.00
>$ 250 million 0.80
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers out of the
fees it receives as administrator, Funds Management is entitled to receive the
following annual fees:
% of Average
Share Class Daily Net Assets
FUND LEVEL 0.05%
CLASS A, CLASS B, CLASS C 0.28%
INSTITUTIONAL CLASS 0.20%
SELECT CLASS 0.10%
Prior to June 9, 2003, MAM served as administrator for each predecessor
portfolio of the Wells Fargo Montgomery Funds, and was entitled to receive a fee
per fund ranging from 0.04% to 0.07%, depending on the fund and the level of
assets.
The Trust has entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. BFDS is entitled to
receive fees from the administrator for its services as transfer agent.
Prior to June 9, 2003, DST Systems, Inc. served as the transfer agent for
each predecessor portfolio of the Wells Fargo Montgomery Funds.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to certain transaction charges plus a monthly fee for
custody services at the following annual rates:
% of Average
Fund Daily Net Assets
INTERNATIONAL EQUITY FUND 0.10%
MONTGOMERY EMERGING MARKETS FOCUS FUND 0.25%
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND 0.25%
SPECIALIZED HEALTH SCIENCES FUND 0.07%
SPECIALIZED TECHNOLOGY FUND 0.07%
ALL OTHER FUNDS 0.02%
WFB does not receive a custodial fee for any Fund that invests its assets
solely in one or more Master Portfolios or other investment companies.
Prior to June 9, 2003, J.P. Morgan Chase Bank served as custodian for the
predecessor portfolios of the Wells Fargo Montgomery Funds.
151
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
% of Average
Share Class Daily Net Assets
CLASS A, CLASS B, CLASS C 0.25%
INSTITUTIONAL CLASS* 0.10%
SELECT CLASS 0.00%
*Fee applies only to Institutional Class shares of the Diversified Small
Cap, Montgomery Small Cap, Small Cap Growth, Small Cap Opportunities, Small
Company Growth and Small Company Value Funds.
For the six months ended March 31, 2004, shareholder servicing fees paid
were as follows:
Institutional
Fund Class A Class B Class C Class
DIVERSIFIED EQUITY FUND $111,434 $121,824 $13,607 0
DIVERSIFIED SMALL CAP FUND N/A N/A N/A 181,830
EQUITY INCOME FUND 229,286 124,248 15,212 0
EQUITY INDEX FUND 427,910 76,917 N/A N/A
GROWTH FUND 167,987 13,285 N/A 0
GROWTH EQUITY FUND 23,663 18,599 4,334 0
INDEX FUND N/A N/A N/A 0
INTERNATIONAL EQUITY FUND 75,329 23,974 3,635 0
LARGE CAP APPRECIATION FUND 2,030 1,968 745 0
LARGE CAP VALUE FUND 675 292 62 0
LARGE COMPANY GROWTH FUND 502,525 326,214 55,076 0
MONTGOMERY EMERGING MARKETS FOCUS FUND 189,364 1,559 2,297 0
MONTGOMERY MID CAP GROWTH FUND 117,917 7,686 995 N/A
MONTGOMERY SMALL CAP FUND 118,317 470 167 1,226
SIFE SPECIALIZED FINANCIAL SERVICES FUND 671,627 23,689 2,656 N/A
SMALL CAP GROWTH FUND 81,457 36,604 13,607 28,113
SMALL CAP OPPORTUNITIES FUND N/A N/A N/A 225,378
SMALL COMPANY GROWTH FUND 25 7 7 251,210
SMALL COMPANY VALUE FUND 17,703 11,616 2,549 21,717
SPECIALIZED HEALTH SCIENCES FUND 16,594 22,406 3,052 N/A
SPECIALIZED TECHNOLOGY FUND 149,565 42,986 9,103 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.
Prior to June 9, 2003, Funds Distributor, Inc. served as the distributor
to the predecessor portfolios of the Wells Fargo Montgomery Funds, and received
distribution fees at an annual rate of 0.25% of average daily net assets of the
funds' Class A shares and 0.75% of average daily net assets of the funds' Class
B and Class C shares.
For the six months ended March 31, 2004, distribution fees paid are
disclosed in the Statement of Operations.
152
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee, and an annual fixed fee from each
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement
of Operations, for the six months ended March 31, 2004, were waived by Funds
Management, first from advisory fees, and then any remaining amount
consecutively from administration, custody and shareholder servicing fees
collected, if any.
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 the six
months ended March 31, 2004, were as follows:
Fund Purchases at Cost Sales Proceeds
DIVERSIFIED EQUITY FUND* $365,400,953 $329,788,557
DIVERSIFIED SMALL CAP FUND* 173,042,969 139,937,560
EQUITY INCOME FUND* 101,832,688 210,186,162
EQUITY INDEX FUND 3,519,822 9,893,139
GROWTH FUND 54,310,523 73,684,304
GROWTH EQUITY FUND* 192,692,611 168,648,530
INDEX FUND* 68,511,800 13,153,129
INTERNATIONAL EQUITY FUND 78,816,868 99,748,909
LARGE CAP APPRECIATION FUND* 18,280,167 18,164,339
LARGE CAP VALUE FUND* 1,233,750 1,226,998
LARGE COMPANY GROWTH FUND* 359,116,770 230,440,264
MONTGOMERY EMERGING MARKETS FOCUS FUND 224,332,211 213,877,576
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND 46,365,288 52,311,960
MONTGOMERY MID CAP GROWTH FUND 82,729,867 85,906,589
MONTGOMERY SMALL CAP FUND 76,203,250 74,265,028
SIFE SPECIALIZED FINANCIAL SERVICES FUND 429,281,893 485,798,317
SMALL CAP GROWTH FUND 135,009,104 152,569,755
SMALL CAP OPPORTUNITIES FUND 278,692,066 256,408,764
SMALL COMPANY GROWTH FUND* 377,869,160 368,239,438
SMALL COMPANY VALUE FUND* 25,635,342 17,776,591
SPECIALIZED HEALTH SCIENCES FUND 31,190,622 32,171,796
SPECIALIZED TECHNOLOGY FUND 173,313,414 190,779,882
* These Funds seek to achieve their investment objective by investing some
or all of their investable assets in one or more Master Portfolios. Purchases
and sales related to these investments have been calculated by aggregating the
results of multiplying such Fund's ownership percentage of the respective Master
Portfolio by the corresponding Master Portfolio's purchases and sales.
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
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 March 31, 2004.
153
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
As of March 31, 2004, the Trust has authorized an unlimited number of
shares of beneficial interest without par value. Transactions in capital shares
for each Fund are disclosed below:
FOR THE SIX MONTHS ENDED MARCH 31, 2004
- --------------------------------------------------------------------------------------------
NET INCREASE
SHARES ISSUED ON (DECREASE)
SHARES REINVESTMENT SHARES IN SHARES
FUND NAME SOLD OF DISTRIBUTIONS REDEEMED OUTSTANDING
- --------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
- --------------------------------------------------------------------------------------------
Class A ........................ 420,239 14,462 (170,145) 264,556
Class B ........................ 125,636 0 (366,565) (240,929)
Class C ........................ 52,613 229 (31,563) 21,279
Institutional Class ............ 1,122,547 250,738 (2,989,600) (1,616,315)
DIVERSIFIED SMALL CAP FUND
- --------------------------------------------------------------------------------------------
Institutional Class ............ 8,526,935 147,063 (2,166,364) 6,507,634
EQUITY INCOME FUND(1)
- --------------------------------------------------------------------------------------------
Class A ........................ 970,752 248,165 (912,734) 306,183
Class B ........................ 103,782 127,848 (641,269) (409,639)
Class C ........................ 54,032 14,486 (38,523) 29,995
Institutional Class ............ 1,581,893 796,551 (4,580,026) (2,201,582)
EQUITY INDEX FUND(2)
- --------------------------------------------------------------------------------------------
Class A ........................ 322,071 267,980 (436,233) 153,818
Class B ........................ 73,617 38,606 (155,159) (42,936)
Class O ........................ N/A N/A N/A N/A
GROWTH FUND
- --------------------------------------------------------------------------------------------
Class A ........................ 923,355 0 (1,475,571) (552,216)
Class B ........................ 45,604 0 (514,483) (468,879)
Institutional Class ............ 301,185 0 (1,299,069) (997,884)
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------------------
Class A ........................ 185,739 0 (82,480) 103,259
Class B ........................ 35,926 0 (123,232) (87,306)
Class C ........................ 23,713 0 (14,095) 9,618
Institutional Class ............ 895,254 0 (853,392) 41,862
INDEX FUND
- --------------------------------------------------------------------------------------------
Institutional Class ............ 4,961,096 232,802 (2,588,210) 2,605,688
INTERNATIONAL EQUITY FUND(1)
- --------------------------------------------------------------------------------------------
Class A ........................ 2,497,222 27,964 (2,533,217) (8,031)
Class B ........................ 104,003 0 (567,997) (463,994)
Class C ........................ 201,316 0 (197,915) 3,401
Institutional Class ............ 2,384,084 110,375 (3,218,009) (723,550)
LARGE CAP APPRECIATION FUND
- --------------------------------------------------------------------------------------------
Class A ........................ 110,057 0 (23,078) 86,979
Class B ........................ 17,540 0 (21,765) (4,225)
Class C ........................ 14,957 0 (1,235) 13,722
Institutional Class ............ 194,866 0 (235,902) (41,036)
LARGE CAP VALUE FUND(3)
- --------------------------------------------------------------------------------------------
Class A ........................ 107,611 19 (10,267) 97,363
Class B ........................ 43,437 0 (1,665) 41,772
Class C ........................ 16,993 0 (88) 16,905
Institutional Class ............ 12,117 1 0 12,118
LARGE COMPANY GROWTH FUND(1)
- --------------------------------------------------------------------------------------------
Class A ........................ 1,823,421 0 (1,230,491) 592,930
Class B ........................ 240,406 0 (490,469) (250,063)
Class C ........................ 142,460 0 (136,678) 5,782
Institutional Class ............ 10,933,813 228 (6,454,319) 4,479,722
(1) "SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. (SEE NOTE 1).
(2) SHARE CLASS O OF THE EQUITY INDEX FUND WAS LIQUIDATED ON JANUARY 20, 2003.
(3) FUND COMMENCED ON AUGUST 29, 2003.
(4) FOR THE WELLS FARGO MONTGOMERY FUNDS, PRIOR PERIOD INFORMATION PRESENTED IS
FROM JULY 1, 2003 TO SEPTEMBER 30, 2003.
154
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
FOR THE YEAR/PERIOD ENDED SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------
SHARES ISSUED ON NET INCREASE
SHARES REINVESTMENT SHARES (DECREASE) IN
FUND NAME SOLD OF DISTRIBUTIONS REDEEMED SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
- ---------------------------------------------------------------------------------------------------
Class A ........................ 547,553 6,542 (407,745) 146,350
Class B ........................ 297,242 0 (637,290) (340,048)
Class C ........................ 105,646 0 (70,205) 35,441
Institutional Class ............ 3,842,213 206,423 (6,652,921) (2,604,285)
DIVERSIFIED SMALL CAP FUND
- ---------------------------------------------------------------------------------------------------
Institutional Class ............ 7,897,937 177,424 (5,024,607) 3,050,754
EQUITY INCOME FUND(1)
- ---------------------------------------------------------------------------------------------------
Class A ........................ 1,528,661 407,540 (1,080,084) 856,117
Class B ........................ 938,286 266,025 (1,251,780) (47,469)
Class C ........................ 134,133 22,093 (76,007) 80,219
Institutional Class ............ 5,555,543 1,751,330 (9,712,640) (2,405,767)
EQUITY INDEX FUND(2)
- ---------------------------------------------------------------------------------------------------
Class A ........................ 337,356 391,452 (835,142) (106,334)
Class B ........................ 194,910 57,525 (294,519) (42,084)
Class O ........................ 3 213 (6,336) (6,120)
GROWTH FUND
- ---------------------------------------------------------------------------------------------------
Class A ........................ 1,599,751 0 (2,684,899) (1,085,148)
Class B ........................ 120,162 0 (1,589,895) (1,469,733)
Institutional Class ............ 770,907 0 (3,318,787) (2,547,880)
GROWTH EQUITY FUND
- ---------------------------------------------------------------------------------------------------
Class A ........................ 231,162 0 (173,773) 57,389
Class B ........................ 76,178 0 (195,660) (119,482)
Class C ........................ 55,140 0 (20,644) 34,496
Institutional Class ............ 1,724,858 7,318 (2,141,744) (409,568)
INDEX FUND
- ---------------------------------------------------------------------------------------------------
Institutional Class ............ 6,745,859 238,577 (4,243,595) 2,740,841
INTERNATIONAL EQUITY FUND(1)
- ---------------------------------------------------------------------------------------------------
Class A ........................ 47,797,060 0 (45,152,591) 2,644,469
Class B ........................ 147,145 0 (1,573,580) (1,426,435)
Class C ........................ 371,728 0 (369,363) 2,365
Institutional Class ............ 24,200,043 45,702 (41,309,604) (17,063,859)
LARGE CAP APPRECIATION FUND
- ---------------------------------------------------------------------------------------------------
Class A ........................ 50,716 0 (54,161) (3,445)
Class B ........................ 46,887 0 (21,298) 25,589
Class C ........................ 40,217 0 (10,108) 30,109
Institutional Class ............ 1,603,296 0 (268,194) 1,335,102
LARGE CAP VALUE FUND(3)
- ---------------------------------------------------------------------------------------------------
Class A ........................ 7,770 0 0 7,770
Class B ........................ 3,816 0 0 3,816
Class C ........................ 1,210 0 0 1,210
Institutional Class ............ 1,000 0 0 1,000
LARGE COMPANY GROWTH FUND(1)
- ---------------------------------------------------------------------------------------------------
Class A ........................ 5,814,453 0 (1,631,159) 4,183,294
Class B ........................ 487,617 0 (1,223,923) (736,306)
Class C ........................ 374,960 0 (221,606) 153,354
Institutional Class ............ 17,628,578 0 (7,158,365) 10,470,213
155
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS CONTINUED
---------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2004
- --------------------------------------------------------------------------------------------------------------
NET INCREASE
SHARES ISSUED ON (DECREASE)
SHARES REINVESTMENT SHARES IN SHARES
FUND NAME SOLD OF DISTRIBUTIONS REDEEMED OUTSTANDING
- --------------------------------------------------------------------------------------------------------------
MONTGOMERY EMERGING MARKETS FOCUS FUND (1)(4)
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 1,632,075 0 (605,088) 1,026,987
Class B .......................................... 105,244 0 (10,641) 94,603
Class C .......................................... 118,728 0 (7,267) 111,461
Institutional Class .............................. 1,171,158 0 (348,480) 822,678
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND (4)
- --------------------------------------------------------------------------------------------------------------
Select Class ..................................... 24,987 22,530 (61,660) (14,143)
MONTGOMERY MID CAP GROWTH FUND (1)(4)
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 586,209 117 (1,798,321) (1,211,995)
Class B .......................................... 266,570 0 (142,988) 123,582
Class C .......................................... 62,143 0 (19,354) 42,789
MONTGOMERY SMALL CAP FUND (4)
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 700,864 0 (787,659) (86,795)
Class B .......................................... 39,329 0 (241) 39,088
Class C .......................................... 9,377 0 (26) 9,351
Institutional Class .............................. 315,531 0 (34,064) 281,467
SIFE SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 4,376,326 23,351,656 (13,110,585) 14,617,397
Class B .......................................... 163,345 876,691 (1,690,093) (650,057)
Class C .......................................... 65,367 88,480 (51,175) 102,672
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 744,623 0 (736,535) 8,088
Class B .......................................... 75,556 0 (455,267) (379,711)
Class C .......................................... 116,963 0 (130,943) (13,980)
Institutional Class .............................. 673,856 0 (1,421,302) (747,446)
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------------------------------------
Institutional Class .............................. 2,081,672 428,874 (1,157,877) 1,352,668
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 3,998 0 (353) 3,645
Class B .......................................... 1,266 0 (353) 913
Class C .......................................... 1,231 0 (353) 878
Institutional Class .............................. 1,591,737 0 (1,256,150) 335,587
SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 938,951 38,534 (175,526) 801,959
Class B .......................................... 225,212 27,546 (104,018) 148,740
Class C .......................................... 80,555 5,817 (24,480) 61,892
Institutional Class .............................. 1,435,088 117,077 (621,733) 930,432
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 135,726 0 (191,580) (55,854)
Class B .......................................... 63,423 0 (154,251) (90,828)
Class C .......................................... 17,118 0 (25,998) (8,880)
SPECIALIZED TECHNOLOGY FUND (1)
- --------------------------------------------------------------------------------------------------------------
Class A .......................................... 2,366,076 0 (3,539,555) (1,173,479)
Class B .......................................... 299,872 0 (694,389) (394,517)
Class C .......................................... 151,643 0 (450,039) (298,396)
(1) "SHARES SOLD" INCLUDE AMOUNTS RELATED TO FUND MERGERS. (SEE NOTE 1).
(2) SHARE CLASS O OF THE EQUITY INDEX FUND WAS LIQUIDATED ON JANUARY 20, 2003.
(3) FUND COMMENCED ON AUGUST 29, 2003.
(4) FOR THE WELLS FARGO MONTGOMERY FUNDS, PRIOR PERIOD INFORMATION PRESENTED IS
FROM JULY 1, 2003 TO SEPTEMBER 30, 2003.
156
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
FOR THE YEAR/PERIOD ENDED SEPTEMBER 30, 2003
----------------------------------------------------------------
SHARES ISSUED ON NET INCREASE
SHARES REINVESTMENT SHARES (DECREASE) IN
FUND NAME SOLD OF DISTRIBUTIONS REDEEMED SHARES OUTSTANDING
- ---------------------------------------------------------------------------------------------------------------------
MONTGOMERY EMERGING MARKETS FOCUS FUND (1)(4)
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 130,517 0 (403,847) (273,330)
Class B .......................................... 14,606 0 0 14,606
Class C .......................................... 25,732 0 (42) 25,690
Institutional Class .............................. 158,065 0 (199,396) (41,331)
MONTGOMERY INSTITUTIONAL EMERGING MARKETS FUND (4)
- ---------------------------------------------------------------------------------------------------------------------
Select Class ..................................... 22,133 0 (53,898) (31,765)
MONTGOMERY MID CAP GROWTH FUND (1)(4)
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 162,688 0 (757,594) (594,906)
Class B .......................................... 120,433 0 (56,322) 64,111
Class C .......................................... 26,087 0 (9,615) 16,472
MONTGOMERY SMALL CAP FUND (4)
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 3,028,972 0 (137,506) 2,891,466
Class B .......................................... 9,549 0 (814) 8,735
Class C .......................................... 7,464 0 0 7,464
Institutional Class .............................. 33,955 0 0 33,955
SIFE SPECIALIZED FINANCIAL SERVICES FUND
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 4,049,176 1,298,136 (22,363,995) (17,016,683)
Class B .......................................... 396,511 29,535 (1,269,282) (843,236)
Class C .......................................... 85,925 2,341 (115,683) (27,417)
SMALL CAP GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 2,077,838 0 (5,476,714) (3,398,876)
Class B .......................................... 178,010 0 (962,856) (784,846)
Class C .......................................... 184,200 0 (256,048) (71,848)
Institutional Class .............................. 1,371,646 0 (4,042,505) (2,670,859)
SMALL CAP OPPORTUNITIES FUND
- ---------------------------------------------------------------------------------------------------------------------
Institutional Class .............................. 2,713,079 677,573 (2,534,196) 856,456
SMALL COMPANY GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... N/A N/A N/A N/A
Class B .......................................... N/A N/A N/A N/A
Class C .......................................... N/A N/A N/A N/A
Institutional Class .............................. 2,453,057 0 (3,360,905) (907,848)
SMALL COMPANY VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 616,218 283 (363,859) 252,642
Class B .......................................... 232,474 301 (153,665) 79,110
Class C .......................................... 130,112 10 (6,011) 124,111
Institutional Class .............................. 3,042,406 623 (794,761) 2,248,268
SPECIALIZED HEALTH SCIENCES FUND
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 217,904 0 (434,983) (217,079)
Class B .......................................... 174,086 0 (351,893) (177,807)
Class C .......................................... 47,593 0 (64,129) (16,536)
SPECIALIZED TECHNOLOGY FUND (1)
- ---------------------------------------------------------------------------------------------------------------------
Class A .......................................... 27,236,070 0 (5,183,901) 22,052,169
Class B .......................................... 540,220 0 (1,840,805) (1,300,585)
Class C .......................................... 320,412 0 (438,167) (117,755)
157
WELLS FARGO STOCK FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
7.MISCELLANEOUS
FOREIGN TAXES PAYABLE
Under Indian tax law, U.S. mutual funds are subject to taxation on capital
gains realized upon the sale of Indian securities. Mutual fund industry practice
has long been to net long-term capital losses against taxable short-term capital
gains. However, the Indian tax statute was amended in mid-2002 to disallow such
netting, and the Indian tax authorities have subsequently assessed additional
taxes on many U.S. mutual funds based upon a retroactive application of the tax
statute. For the taxable years since their inception dates, each of the Wells
Fargo Montgomery Emerging Markets Focus Fund (the "Focus Fund"), as successor to
the Montgomery Emerging Markets Fund, and the Wells Fargo Montgomery
Institutional Emerging Markets Fund (the "Emerging Markets Fund"), as successor
to the Montgomery Institutional Series: Emerging Markets Portfolio, has been
assessed approximately $590,000 and $52,000, respectively. Each Fund filed
administrative appeals to these assessments in April 2003.
On August 1, 2003, the Focus Fund received a demand for one-half of the
$590,000 to stay the imposition of additional penalties while the assessment was
under appeal, and an agreement was reached on August 8, 2003 for the Focus Fund
to make such payment. The Emerging Markets Fund has not received a similar
demand for payment to date. On August 20, 2003, Funds Management was advised
that the Indian tax authorities had rescinded the earlier agreement for one-half
payment and demanded payment of the entire assessment of $590,000.
On August 20, 2003, the Funds made the determination to accrue the entire
amount at issue for each Fund as a tax expense. The Funds continue to pursue the
administrative appeals process and will reverse such accruals in the event of a
favorable disposition.
158
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.29%
AMUSEMENT & RECREATION SERVICES - 2.44%
97,600 INTERNATIONAL GAME TECHNOLOGY $ 4,388,096
-----------
APPAREL & ACCESSORY STORES - 2.18%
98,300 NORDSTROM INCORPORATED 3,922,170
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 2.29%
74,100 PULTE HOMES INCORPORATED 4,119,960
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 2.04%
98,400 HOME DEPOT INCORPORATED 3,676,224
-----------
BUSINESS SERVICES - 10.00%
97,100 ADOBE SYSTEMS INCORPORATED 3,828,653
81,900 ELECTRONIC ARTS INCORPORATED+ 4,419,324
239,400 MICROSOFT CORPORATION 5,977,818
81,500 SYMANTEC CORPORATION+ 3,773,450
17,999,245
-----------
CHEMICALS & ALLIED PRODUCTS - 6.27%
170,800 PFIZER INCORPORATED 5,986,540
50,500 PROCTER & GAMBLE COMPANY 5,296,440
11,282,980
-----------
COMMUNICATIONS - 1.94%
141,100 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 3,489,403
-----------
DEPOSITORY INSTITUTIONS - 2.30%
98,700 JP MORGAN CHASE & COMPANY 4,140,465
-----------
EDUCATIONAL SERVICES - 5.14%
50,100 APOLLO GROUP INCORPORATED CLASS A+ 4,314,111
87,000 CAREER EDUCATION CORPORATION+ 4,927,680
9,241,791
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 19.01%
158,400 ALTERA CORPORATION+ 3,239,280
90,900 ENERGIZER HOLDINGS INCORPORATED+ 4,244,121
193,900 GENERAL ELECTRIC COMPANY 5,917,828
207,400 INTEL CORPORATION 5,641,280
65,600 INTERNATIONAL BUSINESS MACHINES CORPORATION 6,024,704
91,400 NATIONAL SEMICONDUCTOR CORPORATION+ 4,060,902
173,800 TEXAS INSTRUMENTS INCORPORATED 5,078,436
34,206,551
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 2.17%
51,000 FORTUNE BRANDS INCORPORATED 3,908,130
-----------
159
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 2.01%
67,000 PEPSICO INCORPORATED $ 3,607,950
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.27%
76,200 3M COMPANY 6,238,494
266,800 CISCO SYSTEMS INCORPORATED+ 6,275,136
124,200 DELL INCORPORATED+ 4,175,604
16,689,234
------------
INSURANCE CARRIERS - 4.45%
102,000 FIDELITY NATIONAL FINANCIAL INCORPORATED 4,039,200
61,500 UNITEDHEALTH GROUP INCORPORATED 3,963,060
8,002,260
------------
LEATHER & LEATHER PRODUCTS - 2.13%
93,300 COACH INCORPORATED+ 3,824,367
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 8.28%
71,000 BECTON DICKINSON & COMPANY 3,442,080
88,700 BOSTON SCIENTIFIC CORPORATION+ 3,759,106
61,100 GUIDANT CORPORATION 3,871,907
51,800 ZIMMER HOLDINGS INCORPORATED+ 3,821,804
14,894,897
------------
MEDICAL MANAGEMENT SERVICES - 1.99%
84,800 COVENTRY HEALTH CARE INCORPORATED+ 3,589,584
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 3.12%
110,800 JOHNSON & JOHNSON 5,619,776
------------
MISCELLANEOUS RETAIL - 5.05%
94,200 COSTCO WHOLESALE CORPORATION+ 3,538,152
92,900 WAL-MART STORES INCORPORATED 5,545,201
9,083,353
------------
MISCELLANEOUS SERVICES - 2.02%
68,000 D&B CORPORATION+ 3,638,000
------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.13%
91,500 SLM CORPORATION 3,829,275
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES
- 2.06%
62,300 MERRILL LYNCH & COMPANY INCORPORATED 3,710,588
------------
TOTAL COMMON STOCK (COST $157,593,982) 176,864,299
------------
COLLATERAL FOR SECURITIES LENDING - 11.75%
COLLATERAL FOR SECURITY LENDING 21,154,836
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $21,154,836) 21,154,836
------------
160
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 1.72%
MUTUAL FUND - 1.72%
3,091,087 WELLS FARGO MONEY MARKET TRUST~ $ 3,091,087
------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,091,087) 3,091,087
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $181,839,905)* 111.76% $201,110,222
OTHER ASSETS AND LIABILITIES, NET (11.76) (21,167,406)
------ ------------
TOTAL NET ASSETS 100.00% $179,942,816
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
161
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.45%
BUSINESS SERVICES - 1.39%
1,020,500 MICROSOFT CORPORATION $ 25,481,885
------------
CHEMICALS & ALLIED PRODUCTS - 11.82%
424,775 ABBOTT LABORATORIES 17,458,252
384,722 AIR PRODUCTS & CHEMICALS INCORPORATED 19,282,267
769,984 DU PONT (E.I.) DE NEMOURS & COMPANY 32,508,724
475,235 MERCK & COMPANY INCORPORATED 21,000,635
1,082,335 PFIZER INCORPORATED 37,935,842
486,630 PROCTER & GAMBLE COMPANY 51,037,754
954,681 ROHM & HAAS COMPANY 38,034,491
217,257,965
------------
COMMUNICATIONS - 3.45%
345,040 AT&T CORPORATION 6,752,433
471,440 SBC COMMUNICATIONS INCORPORATED 11,569,138
1,232,236 VERIZON COMMUNICATIONS INCORPORATED 45,025,903
63,347,474
------------
DEPOSITORY INSTITUTIONS - 13.24%
431,635 BANK OF AMERICA CORPORATION 34,953,802
997,465 CITIGROUP INCORPORATED 51,568,940
1,641,965 JP MORGAN CHASE & COMPANY 68,880,432
2,177,601 US BANCORP 60,210,668
591,115 WACHOVIA CORPORATION 27,782,405
243,396,247
------------
EATING & DRINKING PLACES - 2.92%
1,878,370 MCDONALD'S CORPORATION 53,665,031
------------
ELECTRIC, GAS & SANITARY SERVICES - 3.56%
25,858 DOMINION RESOURCES INCORPORATED 1,662,669
215,845 FIRSTENERGY CORPORATION 8,435,223
265,910 FPL GROUP INCORPORATED 17,776,083
801,015 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 37,631,685
65,505,660
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 11.27%
973,200 EMERSON ELECTRIC COMPANY 58,314,144
1,584,894 GENERAL ELECTRIC COMPANY 48,370,965
691,167 INTERNATIONAL BUSINESS MACHINES CORPORATION 63,476,777
916,935 MOTOROLA INCORPORATED 16,138,056
1,030,170 NOKIA OYJ ADR 20,891,848
207,191,790
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY &
TRANSPORTATION EQUIPMENT - 3.86%
925,060 FORTUNE BRANDS INCORPORATED 70,887,348
------------
162
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 6.74%
1,286,995 PEPSICO INCORPORATED $ 69,304,681
2,499,675 SARA LEE CORPORATION 54,642,895
123,947,576
------------
GENERAL MERCHANDISE STORES - 5.15%
1,251,795 MAY DEPARTMENT STORES COMPANY 43,287,071
1,139,295 TARGET CORPORATION 51,313,847
94,600,918
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.49%
558,441 3M COMPANY 45,719,565
------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.08%
553,680 METLIFE INCORPORATED 19,755,302
------------
INSURANCE CARRIERS - 6.76%
1,344,519 AEGON NV 17,277,069
466,795 ALLSTATE CORPORATION 21,220,501
620,343 AMERICAN INTERNATIONAL GROUP INCORPORATED 44,261,473
1,035,150 ST PAUL COMPANIES INCORPORATED 41,416,351
124,175,394
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 1.51%
572,659 BECTON DICKINSON & COMPANY 27,762,508
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 5.06%
2,924,715 HEWLETT-PACKARD COMPANY 66,800,490
516,765 JOHNSON & JOHNSON 26,210,321
93,010,811
------------
MOTION PICTURES - 1.55%
1,141,090 WALT DISNEY COMPANY 28,515,839
------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 3.19%
1,129,430 AMERICAN EXPRESS COMPANY 58,560,946
------------
PAPER & ALLIED PRODUCTS - 1.14%
332,100 KIMBERLY-CLARK CORPORATION 20,955,510
------------
PETROLEUM REFINING & RELATED INDUSTRIES - 9.57%
472,658 BP PLC ADR 24,200,090
472,285 CHEVRONTEXACO CORPORATION 41,457,177
314,575 CONOCOPHILLIPS 21,960,481
1,595,736 EXXON MOBIL CORPORATION 66,366,660
458,984 ROYAL DUTCH PETROLEUM COMPANY 21,838,460
175,822,868
------------
163
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TOBACCO PRODUCTS - 1.64%
554,300 ALTRIA GROUP INCORPORATED $ 30,181,635
--------------
TRANSPORTATION EQUIPMENT - 2.06%
1,118,480 HONEYWELL INTERNATIONAL INCORPORATED 37,860,548
--------------
TOTAL COMMON STOCK (COST $1,393,199,181) 1,827,602,820
--------------
COLLATERAL FOR SECURITIES LENDING - 4.06%
COLLATERAL FOR SECURITY LENDING 74,618,356
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $74,618,356) 74,618,356
--------------
SHORT-TERM INVESTMENTS - 0.42%
MUTUAL FUND - 0.42%
7,770,431 WELLS FARGO MONEY MARKET TRUST~ 7,770,431
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,770,431) 7,770,431
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,475,587,968)* 103.93% $1,909,991,607
OTHER ASSETS AND LIABILITIES, NET (3.93) (72,189,492)
------ --------------
TOTAL NET ASSETS 100.00% $1,837,802,115
====== ==============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
164
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.11%
AMUSEMENT & RECREATION SERVICES - 0.20%
18,956 HARRAH'S ENTERTAINMENT INCORPORATED $ 1,040,495
59,064 INTERNATIONAL GAME TECHNOLOGY 2,655,517
3,696,012
-----------
APPAREL & ACCESSORY STORES - 0.48%
152,569 GAP INCORPORATED 3,344,313
57,907 KOHLS CORPORATION+ 2,798,645
83,028 LIMITED BRANDS 1,660,560
23,406 NORDSTROM INCORPORATED 933,899
8,737,417
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM
FABRICS & SIMILAR MATERIALS - 0.13%
21,516 JONES APPAREL GROUP INCORPORATED 777,803
18,585 LIZ CLAIBORNE INCORPORATED 681,884
18,404 VF CORPORATION 859,467
2,319,154
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.11%
46,847 AUTONATION INCORPORATED+ 798,742
14,861 AUTOZONE INCORPORATED+ 1,277,600
2,076,342
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
11,049 RYDER SYSTEM INCORPORATED 427,928
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS - 0.16%
21,074 CENTEX CORPORATION 1,139,260
7,951 KB HOME 642,441
21,361 PULTE HOMES INCORPORATED 1,187,672
2,969,373
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 1.26%
387,491 HOME DEPOT INCORPORATED 14,476,664
133,923 LOWE'S COMPANIES INCORPORATED 7,517,098
24,827 SHERWIN-WILLIAMS COMPANY 954,101
22,947,863
-----------
BUSINESS SERVICES - 6.61%
40,584 ADOBE SYSTEMS INCORPORATED 1,600,227
19,210 AUTODESK INCORPORATED 607,420
100,467 AUTOMATIC DATA PROCESSING INCORPORATED 4,219,614
38,342 BMC SOFTWARE INCORPORATED+ 749,586
171,614 CENDANT CORPORATION 4,185,666
27,951 CITRIX SYSTEMS INCORPORATED+ 604,301
99,115 COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED 2,662,229
31,946 COMPUTER SCIENCES CORPORATION+ 1,288,382
65,466 COMPUWARE CORPORATION+ 487,722
24,400 CONVERGYS CORPORATION+ 370,880
165
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
8,607 DELUXE CORPORATION $ 345,141
110,017 EBAY INCORPORATED+ 7,627,479
50,906 ELECTRONIC ARTS INCORPORATED+ 2,746,888
81,810 ELECTRONIC DATA SYSTEMS CORPORATION 1,583,024
23,686 EQUIFAX INCORPORATED 611,573
151,155 FIRST DATA CORPORATION 6,372,695
33,143 FISERV INCORPORATED+ 1,185,525
40,782 IMS HEALTH INCORPORATED 948,589
70,651 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 1,086,612
33,805 INTUIT INCORPORATED+ 1,517,168
15,333 MERCURY INTERACTIVE CORPORATION+ 686,918
1,838,390 MICROSOFT CORPORATION 45,904,598
19,245 MONSTER WORLDWIDE INCORPORATED+ 504,219
16,111 NCR CORPORATION+ 709,851
64,114 NOVELL INCORPORATED+ 729,617
32,359 OMNICOM GROUP INCORPORATED 2,596,810
890,309 ORACLE CORPORATION+ 10,692,611
45,388 PARAMETRIC TECHNOLOGY CORPORATION+ 205,154
61,983 PEOPLESOFT INCORPORATED+ 1,146,066
29,160 ROBERT HALF INTERNATIONAL INCORPORATED+ 688,759
84,453 SIEBEL SYSTEMS INCORPORATED+ 972,054
559,790 SUN MICROSYSTEMS INCORPORATED+ 2,328,726
48,928 SUNGARD DATA SYSTEMS INCORPORATED+ 1,340,627
53,006 SYMANTEC CORPORATION+ 2,454,178
56,505 UNISYS CORPORATION+ 806,891
72,820 VERITAS SOFTWARE CORPORATION+ 1,959,586
113,283 YAHOO! INCORPORATED+ 5,504,421
120,031,807
------------
CHEMICALS & ALLIED PRODUCTS - 10.83%
266,293 ABBOTT LABORATORIES 10,944,642
38,705 AIR PRODUCTS & CHEMICALS INCORPORATED 1,939,895
15,333 ALBERTO-CULVER COMPANY CLASS B 672,659
219,690 AMGEN INCORPORATED+ 12,779,367
18,812 AVERY DENNISON CORPORATION 1,170,294
40,090 AVON PRODUCTS INCORPORATED 3,041,628
330,586 BRISTOL-MYERS SQUIBB COMPANY 8,010,099
31,937 CHIRON CORPORATION+ 1,405,547
35,790 CLOROX COMPANY 1,750,489
90,708 COLGATE PALMOLIVE COMPANY 4,998,011
158,704 DOW CHEMICAL COMPANY 6,392,597
169,941 DU PONT (E.I.) DE NEMOURS & COMPANY 7,174,909
13,176 EASTMAN CHEMICAL COMPANY 562,352
43,806 ECOLAB INCORPORATED 1,249,785
191,381 ELI LILLY & COMPANY 12,803,389
62,639 FOREST LABORATORIES INCORPORATED+ 4,486,205
38,173 GENZYME CORPORATION+ 1,795,658
171,500 GILLETTE COMPANY 6,705,650
166
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
8,617 GREAT LAKES CHEMICAL CORPORATION $ 205,515
15,950 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 566,225
41,068 KING PHARMACEUTICALS INCORPORATED+ 691,585
42,157 MEDIMUNE INCORPORATED+ 972,983
378,824 MERCK & COMPANY INCORPORATED 16,740,233
45,222 MONSANTO COMPANY 1,658,291
1,298,621 PFIZER INCORPORATED 45,516,666
29,162 PPG INDUSTRIES INCORPORATED 1,700,145
55,380 PRAXAIR INCORPORATED 2,055,706
220,107 PROCTER & GAMBLE COMPANY 23,084,822
37,921 ROHM & HAAS COMPANY 1,510,773
250,559 SCHERING-PLOUGH CORPORATION 4,064,067
11,808 SIGMA-ALDRICH CORPORATION 653,455
18,385 WATSON PHARMACEUTICALS INCORPORATED+ 786,694
226,819 WYETH 8,517,053
196,607,389
------------
COMMUNICATIONS - 4.45%
53,148 ALLTEL CORPORATION 2,651,554
135,144 AT&T CORPORATION 2,644,768
463,985 AT&T WIRELESS SERVICES INCORPORATED+ 6,314,836
72,311 AVAYA INCORPORATED+ 1,148,299
311,926 BELLSOUTH CORPORATION 8,637,231
24,559 CENTURYTEL INCORPORATED 675,127
104,839 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 4,439,931
383,355 COMCAST CORPORATION CLASS A+ 11,017,623
187,260 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 4,630,940
300,796 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 1,296,431
563,328 SBC COMMUNICATIONS INCORPORATED 13,824,069
153,951 SPRINT CORPORATION-FON GROUP 2,837,317
176,283 SPRINT CORPORATION-PCS GROUP+ 1,621,803
54,925 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+ 1,813,074
470,319 VERIZON COMMUNICATIONS INCORPORATED 17,185,456
80,738,459
------------
DEPOSITORY INSTITUTIONS - 10.60%
59,790 AMSOUTH BANCORPORATION 1,405,663
246,777 BANK OF AMERICA CORPORATION 19,984,001
131,792 BANK OF NEW YORK COMPANY INCORPORATED 4,151,448
190,675 BANK ONE CORPORATION 10,395,601
93,092 BB&T CORPORATION 3,286,148
37,915 CHARTER ONE FINANCIAL INCORPORATED 1,340,674
877,237 CITIGROUP INCORPORATED 45,353,153
29,865 COMERICA INCORPORATED 1,622,267
96,212 FIFTH THIRD BANCORP 5,327,258
21,375 FIRST TENNESSEE NATIONAL CORPORATION 1,019,588
182,210 FLEETBOSTON FINANCIAL CORPORATION 8,181,229
25,874 GOLDEN WEST FINANCIAL CORPORATION 2,896,594
167
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (continued)
39,064 HUNTINGTON BANCSHARES INCORPORATED $ 866,830
350,525 JP MORGAN CHASE & COMPANY 14,704,524
71,384 KEYCORP 2,162,221
20,307 M&T BANK CORPORATION 1,824,584
38,564 MARSHALL & ILSLEY CORPORATION 1,458,105
73,272 MELLON FINANCIAL CORPORATION 2,292,681
103,207 NATIONAL CITY CORPORATION 3,672,105
25,831 NORTH FORK BANCORPORATION INCORPORATED 1,093,168
37,528 NORTHERN TRUST CORPORATION 1,748,430
47,220 PNC FINANCIAL SERVICES GROUP 2,616,932
37,836 REGIONS FINANCIAL CORPORATION 1,381,771
56,258 SOUTHTRUST CORPORATION 1,865,515
57,120 STATE STREET CORPORATION 2,977,666
48,057 SUNTRUST BANKS INCORPORATED 3,350,054
51,392 SYNOVUS FINANCIAL CORPORATION 1,256,534
32,113 UNION PLANTERS CORPORATION 958,573
326,977 US BANCORP 9,040,914
223,935 WACHOVIA CORPORATION 10,524,945
153,166 WASHINGTON MUTUAL INCORPORATED 6,541,720
288,169 WELLS FARGO & COMPANY++ 16,330,537
15,304 ZIONS BANCORPORATION 875,389
192,506,822
------------
EATING & DRINKING PLACES - 0.52%
28,069 DARDEN RESTAURANTS INCORPORATED 695,830
214,888 MCDONALD'S CORPORATION 6,139,350
19,404 WENDY'S INTERNATIONAL INCORPORATED 789,549
50,097 YUM! BRANDS INCORPORATED+ 1,903,185
9,527,914
------------
EDUCATIONAL SERVICES - 0.14%
29,996 APOLLO GROUP INCORPORATED CLASS A+ 2,582,956
------------
ELECTRIC, GAS & SANITARY SERVICES - 3.11%
106,049 AES CORPORATION+ 904,598
21,624 ALLEGHENY ENERGY INCORPORATED+ 296,465
54,535 ALLIED WASTE INDUSTRIES INCORPORATED+ 725,861
30,983 AMEREN CORPORATION 1,428,006
67,273 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 2,214,627
70,360 CALPINE CORPORATION+ 328,581
52,128 CENTERPOINT ENERGY INCORPORATED 595,823
30,327 CINERGY CORPORATION 1,240,071
48,442 CITIZENS COMMUNICATIONS COMPANY+ 626,839
27,442 CMS ENERGY CORPORATION+ 245,606
38,490 CONSOLIDATED EDISON INCORPORATED 1,697,409
28,488 CONSTELLATION ENERGY GROUP INCORPORATED 1,138,096
55,250 DOMINION RESOURCES INCORPORATED 3,552,575
28,756 DTE ENERGY COMPANY 1,183,309
168
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (continued)
154,561 DUKE ENERGY CORPORATION $ 3,493,079
64,166 DYNEGY INCORPORATED CLASS A+ 254,097
55,488 EDISON INTERNATIONAL 1,347,804
109,169 EL PASO CORPORATION 776,192
38,967 ENTERGY CORPORATION 2,318,536
56,071 EXELON CORPORATION 3,861,610
56,174 FIRSTENERGY CORPORATION 2,195,280
31,398 FPL GROUP INCORPORATED 2,098,956
27,089 KEYSPAN CORPORATION 1,035,342
20,987 KINDER MORGAN INCORPORATED 1,322,601
7,500 NICOR INCORPORATED 264,225
44,700 NISOURCE INCORPORATED 949,875
6,343 PEOPLES ENERGY CORPORATION 283,215
71,355 PG&E CORPORATION+ 2,067,154
15,545 PINNACLE WEST CAPITAL CORPORATION 611,696
30,200 PPL CORPORATION 1,377,120
41,736 PROGRESS ENERGY INCORPORATED 1,964,931
40,223 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 1,889,677
38,699 SEMPRA ENERGY 1,230,628
124,700 SOUTHERN COMPANY 3,803,350
31,987 TECO ENERGY INCORPORATED 467,970
55,161 TXU CORPORATION 1,580,914
98,247 WASTE MANAGEMENT INCORPORATED 2,965,094
88,251 WILLIAMS COMPANIES INCORPORATED 844,562
67,923 XCEL ENERGY INCORPORATED 1,209,709
56,391,483
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 9.78%
137,371 ADC TELECOMMUNICATIONS INCORPORATED+ 398,376
59,368 ADVANCED MICRO DEVICES INCORPORATED+ 963,543
64,504 ALTERA CORPORATION+ 1,319,107
33,815 AMERICAN POWER CONVERSION CORPORATION 778,083
63,657 ANALOG DEVICES INCORPORATED 3,056,173
27,047 ANDREW CORPORATION+ 473,322
52,922 APPLIED MICRO CIRCUITS CORPORATION+ 304,301
51,575 BROADCOM CORPORATION CLASS A+ 2,020,193
80,888 CIENA CORPORATION+ 402,013
32,840 COMVERSE TECHNOLOGY INCORPORATED+ 595,718
15,676 COOPER INDUSTRIES LIMITED CLASS A 896,354
71,830 EMERSON ELECTRIC COMPANY 4,304,054
1,736,828 GENERAL ELECTRIC COMPANY 53,007,991
1,104,288 INTEL CORPORATION 30,036,634
289,427 INTERNATIONAL BUSINESS MACHINES CORPORATION 26,580,976
34,061 JABIL CIRCUIT INCORPORATED+ 1,002,415
244,564 JDS UNIPHASE CORPORATION+ 995,375
33,432 KLA-TENCOR CORPORATION+ 1,683,301
53,182 LINEAR TECHNOLOGY CORPORATION 1,968,798
64,556 LSI LOGIC CORPORATION+ 602,953
169
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT (continued)
725,507 LUCENT TECHNOLOGIES INCORPORATED+ $ 2,981,834
55,864 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,630,636
13,378 MAYTAG CORPORATION 422,343
103,778 MICRON TECHNOLOGY INCORPORATED+ 1,734,130
32,426 MOLEX INCORPORATED 985,426
398,635 MOTOROLA INCORPORATED 7,015,976
30,322 NATIONAL SEMICONDUCTOR CORPORATION+ 1,347,206
58,771 NETWORK APPLIANCE INCORPORATED+ 1,260,638
26,113 NOVELLUS SYSTEMS INCORPORATED+ 830,132
27,619 NVIDIA CORPORATION+ 731,627
29,424 PMC-SIERRA INCORPORATED+ 499,325
14,181 POWER-ONE INCORPORATED+ 156,842
16,140 QLOGIC CORPORATION+ 532,781
137,118 QUALCOMM INCORPORATED 9,107,378
30,404 ROCKWELL COLLINS INCORPORATED 961,070
88,358 SANMINA-SCI CORPORATION+ 972,822
25,976 SCIENTIFIC-ATLANTA INCORPORATED 840,064
142,455 SOLECTRON CORPORATION+ 787,776
70,740 TELLABS INCORPORATED+ 610,486
295,041 TEXAS INSTRUMENTS INCORPORATED 8,621,098
9,957 THOMAS & BETTS CORPORATION+ 217,262
11,863 WHIRLPOOL CORPORATION 817,005
58,714 XILINX INCORPORATED+ 2,231,132
177,684,669
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 0.34%
13,972 FLUOR CORPORATION 540,577
25,342 MOODY'S CORPORATION 1,794,213
64,296 PAYCHEX INCORPORATED 2,288,938
17,644 QUEST DIAGNOSTICS INCORPORATED 1,461,452
6,085,180
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY &
TRANSPORTATION EQUIPMENT - 0.53%
9,598 BALL CORPORATION 650,552
10,120 CRANE COMPANY 333,960
24,843 FORTUNE BRANDS INCORPORATED 1,903,719
52,476 ILLINOIS TOOL WORKS INCORPORATED 4,157,674
77,058 MASCO CORPORATION 2,344,875
9,923 SNAP-ON INCORPORATED 320,910
9,711,690
------------
FINANCIAL SERVICES - 0.04%
40,988 JANUS CAPITAL GROUP INCORPORATED 671,383
------------
FOOD & KINDRED PRODUCTS - 3.83%
6,199 ADOLPH COORS COMPANY CLASS B 430,521
138,761 ANHEUSER-BUSCH COMPANIES INCORPORATED 7,076,811
110,359 ARCHER-DANIELS-MIDLAND COMPANY 1,861,756
170
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (continued)
70,008 CAMPBELL SOUP COMPANY $ 1,909,118
416,452 COCA COLA COMPANY 20,947,536
78,160 COCA COLA ENTERPRISES INCORPORATED 1,889,127
91,440 CONAGRA FOODS INCORPORATED 2,463,394
63,837 GENERAL MILLS INCORPORATED 2,979,911
18,889 HERCULES INCORPORATED+ 216,846
22,160 HERSHEY FOODS CORPORATION 1,835,956
59,965 HJ HEINZ COMPANY 2,236,095
70,232 KELLOGG COMPANY 2,755,904
23,390 MCCORMICK & COMPANY INCORPORATED 784,033
44,226 PEPSI BOTTLING GROUP INCORPORATED 1,315,723
291,271 PEPSICO INCORPORATED 15,684,943
134,745 SARA LEE CORPORATION 2,945,526
38,295 WM WRIGLEY JR COMPANY 2,264,000
69,597,200
-----------
FOOD STORES - 0.34%
62,490 ALBERTSON'S INCORPORATED 1,384,154
126,885 KROGER COMPANY+ 2,111,366
67,466 STARBUCKS CORPORATION+ 2,546,842
24,144 WINN-DIXIE STORES INCORPORATED+ 183,494
6,225,856
-----------
FORESTRY - 0.14%
37,436 WEYERHAEUSER COMPANY 2,452,058
-----------
FURNITURE & FIXTURES - 0.10%
32,688 LEGGETT & PLATT INCORPORATED 775,032
46,733 NEWELL RUBBERMAID INCORPORATED 1,084,206
1,859,238
-----------
GENERAL MERCHANDISE STORES - 1.00%
19,912 BIG LOTS INCORPORATED+ 288,724
57,396 DOLLAR GENERAL CORPORATION 1,102,003
29,315 FAMILY DOLLAR STORES INCORPORATED 1,053,874
30,790 FEDERATED DEPARTMENT STORES INCORPORATED 1,664,200
46,498 JC PENNEY COMPANY INCORPORATED 1,617,201
49,148 MAY DEPARTMENT STORES COMPANY 1,699,538
37,966 SEARS ROEBUCK & Company 1,631,019
155,230 TARGET CORPORATION 6,991,559
85,712 TJX COMPANIES INCORPORATED 2,105,087
18,153,205
-----------
HEALTH SERVICES - 0.63%
55,792 BIOGEN IDEC INCORPORATED+ 3,102,035
76,055 CAREMARK RX INCORPORATED+ 2,528,829
84,389 HCA INCORPORATED 3,427,881
41,373 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 960,267
171
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES (continued)
15,217 MANOR CARE INCORPORATED $ 537,008
79,156 TENET HEALTHCARE CORPORATION+ 883,381
11,439,401
-----------
HOLDING & OTHER INVESTMENT OFFICES - 0.44%
15,933 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 495,357
68,083 EQUITY OFFICE PROPERTIES TRUST 1,966,918
47,438 EQUITY RESIDENTIAL 1,416,024
31,195 PLUM CREEK TIMBER COMPANY 1,013,213
30,838 PROLOGIS 1,106,159
32,581 SIMON PROPERTY GROUP INCORPORATED 1,904,034
7,901,705
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.35%
50,817 BED BATH & BEYOND INCORPORATED+ 2,122,118
55,294 BEST BUY COMPANY INCORPORATED 2,859,805
35,859 CIRCUIT CITY STORES INCORPORATED 405,207
27,949 RADIOSHACK CORPORATION 926,789
6,313,919
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.23%
64,613 HILTON HOTELS CORPORATION 1,049,961
39,180 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 1,667,109
34,768 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 1,408,104
4,125,174
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.90%
133,458 3M COMPANY 10,926,206
12,300 AMERICAN STANDARD COMPANIES INCORPORATED+ 1,399,125
62,968 APPLE COMPUTER INCORPORATED+ 1,703,284
286,370 APPLIED MATERIALS INCORPORATED+ 6,122,591
57,027 BAKER HUGHES INCORPORATED 2,080,345
13,361 BLACK & DECKER CORPORATION 760,775
59,138 CATERPILLAR INCORPORATED 4,676,042
1,170,498 CISCO SYSTEMS INCORPORATED+ 27,530,113
7,289 CUMMINS INCORPORATED 426,042
41,470 DEERE & COMPANY 2,874,286
436,065 DELL INCORPORATED+ 14,660,505
34,602 DOVER CORPORATION 1,341,519
411,885 EMC CORPORATION+ 5,605,755
63,774 GATEWAY INCORPORATED+ 336,727
29,868 INGERSOLL-RAND COMPANY CLASS A 2,020,570
21,880 LEXMARK INTERNATIONAL INCORPORATED+ 2,012,960
21,412 PALL CORPORATION 485,838
20,194 PARKER HANNIFIN CORPORATION 1,140,961
39,783 PITNEY BOWES INCORPORATED 1,695,154
172
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
13,804 STANLEY WORKS $ 589,155
39,376 SYMBOL TECHNOLOGIES INCORPORATED 543,389
88,931,342
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.91%
47,529 ACE LIMITED 2,027,587
53,410 AON CORPORATION 1,490,673
27,608 HUMANA INCORPORATED+ 525,104
24,023 JEFFERSON-PILOT CORPORATION 1,321,505
90,305 MARSH & MCLENNAN COMPANIES INCORPORATED 4,181,122
46,036 MEDCO HEALTH SOLUTIONS INCORPORATED+ 1,565,224
129,463 METLIFE INCORPORATED 4,619,240
50,422 UNUMPROVIDENT CORPORATION 737,674
16,468,129
-----------
INSURANCE CARRIERS - 4.96%
26,112 AETNA INCORPORATED 2,342,769
87,339 AFLAC INCORPORATED 3,505,788
119,825 ALLSTATE CORPORATION 5,447,245
18,198 AMBAC FINANCIAL GROUP INCORPORATED 1,342,648
444,329 AMERICAN INTERNATIONAL GROUP INCORPORATED 31,702,874
23,550 ANTHEM INCORPORATED+ 2,134,572
31,980 CHUBB CORPORATION 2,223,889
24,009 CIGNA CORPORATION 1,417,011
27,322 CINCINNATI FINANCIAL CORPORATION 1,187,141
49,618 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 3,160,667
49,272 JOHN HANCOCK FINANCIAL SERVICES INCORPORATED 2,152,694
30,312 LINCOLN NATIONAL CORPORATION 1,434,364
31,583 LOEWS CORPORATION 1,865,292
24,546 MBIA INCORPORATED 1,539,034
16,766 MGIC INVESTMENT CORPORATION 1,076,880
54,632 PRINCIPAL FINANCIAL GROUP INCORPORATED 1,946,538
36,947 PROGRESSIVE CORPORATION 3,236,557
92,052 PRUDENTIAL FINANCIAL INCORPORATED 4,122,089
23,598 SAFECO CORPORATION 1,018,726
38,830 ST PAUL COMPANIES INCORPORATED 1,553,588
19,274 TORCHMARK CORPORATION 1,036,748
171,131 TRAVELERS PROPERTY CASUALTY CORPORATION CLASS B 2,955,432
106,580 UNITEDHEALTH GROUP INCORPORATED 6,868,015
26,414 WELLPOINT HEALTH NETWORKS INCORPORATED+ 3,003,800
23,378 XL CAPITAL LIMITED CLASS A 1,777,663
90,052,024
-----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.11%
43,207 GEORGIA-PACIFIC CORPORATION 1,455,644
18,033 LOUISIANA-PACIFIC CORPORATION 465,251
1,920,895
-----------
173
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.95%
80,983 AGILENT TECHNOLOGIES INCORPORATED+ $ 2,561,492
22,348 ALLERGAN INCORPORATED 1,880,808
35,142 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 695,109
8,929 BAUSCH & LOMB INCORPORATED 535,472
103,940 BAXTER INTERNATIONAL INCORPORATED 3,210,707
43,038 BECTON DICKINSON & COMPANY 2,086,482
43,568 BIOMET INCORPORATED 1,671,268
139,510 BOSTON SCIENTIFIC CORPORATION+ 5,912,434
8,832 C.R. BARD INCORPORATED 862,356
26,210 DANAHER CORPORATION 2,447,228
48,806 EASTMAN KODAK COMPANY 1,277,253
53,051 GUIDANT CORPORATION 3,361,842
206,449 MEDTRONIC INCORPORATED 9,857,940
8,312 MILLIPORE CORPORATION+ 427,071
21,604 PERKINELMER INCORPORATED 446,987
70,887 RAYTHEON COMPANY 2,221,599
31,850 ROCKWELL AUTOMATION INCORPORATED 1,104,240
29,383 ST JUDE MEDICAL INCORPORATED+ 2,118,514
33,974 STRYKER CORPORATION 3,007,718
14,433 TEKTRONIX INCORPORATED 472,103
32,587 TERADYNE INCORPORATED+ 776,548
28,208 THERMO ELECTRON CORPORATION+ 797,722
20,679 WATERS CORPORATION+ 844,530
135,857 XEROX CORPORATION+ 1,979,436
41,184 ZIMMER HOLDINGS INCORPORATED+ 3,038,556
53,595,415
-----------
METAL MINING - 0.33%
33,387 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 1,305,098
73,585 NEWMONT MINING CORPORATION 3,431,268
15,795 PHELPS DODGE CORPORATION+ 1,289,820
6,026,186
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.05%
17,320 VULCAN MATERIALS COMPANY 821,661
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.91%
25,887 EATON CORPORATION 1,454,590
29,716 HASBRO INCORPORATED 646,323
519,564 HEWLETT-PACKARD COMPANY 11,866,842
15,714 ITT INDUSTRIES INCORPORATED 1,199,450
505,452 JOHNSON & JOHNSON 25,636,525
73,213 MATTEL INCORPORATED 1,350,048
24,973 TIFFANY & COMPANY 953,219
340,604 TYCO INTERNATIONAL LIMITED 9,758,305
52,865,302
-----------
174
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 3.31%
78,015 COSTCO WHOLESALE CORPORATION+ $ 2,930,243
67,510 CVS CORPORATION 2,383,103
14,190 DILLARDS INCORPORATED CLASS A 271,880
13,208 EXPRESS SCRIPTS INCORPORATED+ 985,185
52,890 OFFICE DEPOT INCORPORATED+ 995,390
85,042 STAPLES INCORPORATED 2,159,216
36,357 TOYS R US INCORPORATED+ 610,798
737,063 WAL-MART STORES INCORPORATED 43,995,290
174,550 WALGREEN COMPANY 5,751,423
60,082,528
-----------
MOTION PICTURES - 1.20%
775,398 TIME WARNER INCORPORATED+ 13,073,210
348,725 WALT DISNEY COMPANY 8,714,638
21,787,848
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.74%
192,290 UNITED PARCEL SERVICE INCORPORATED CLASS B 13,429,534
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.56%
219,066 AMERICAN EXPRESS COMPANY 11,358,572
39,328 CAPITAL ONE FINANCIAL CORPORATION 2,966,511
31,357 COUNTRYWIDE FINANCIAL CORPORATION 3,007,136
165,484 FANNIE MAE 12,303,736
117,253 FREDDIE MAC 6,924,962
217,600 MBNA CORPORATION 6,012,288
49,428 PROVIDIAN FINANCIAL CORPORATION+ 647,507
76,780 SLM CORPORATION 3,213,243
46,433,955
-----------
OIL & GAS EXTRACTION - 1.61%
42,859 ANADARKO PETROLEUM CORPORATION 2,222,668
55,193 APACHE CORPORATION 2,382,682
27,113 BJ SERVICES COMPANY+ 1,173,180
33,692 BURLINGTON RESOURCES INCORPORATED 2,143,822
39,606 DEVON ENERGY CORPORATION 2,303,089
19,600 EOG RESOURCES INCORPORATED 899,444
74,606 HALLIBURTON COMPANY 2,267,276
17,175 KERR-MCGEE CORPORATION 884,512
24,965 NABORS INDUSTRIES LIMITED+ 1,142,149
22,867 NOBLE CORPORATION+ 878,550
66,105 OCCIDENTAL PETROLEUM CORPORATION 3,044,135
17,733 ROWAN COMPANIES INCORPORATED+ 373,989
100,255 SCHLUMBERGER LIMITED 6,401,282
54,480 TRANSOCEAN INCORPORATED+ 1,519,447
44,101 UNOCAL CORPORATION 1,644,085
29,280,310
-----------
175
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS - 0.66%
18,093 BEMIS COMPANY INCORPORATED $ 470,418
14,854 BOISE CASCADE CORPORATION 514,691
81,828 INTERNATIONAL PAPER COMPANY 3,458,051
85,418 KIMBERLY-CLARK CORPORATION 5,389,876
34,251 MEADWESTVACO CORPORATION 968,961
26,779 PACTIV CORPORATION+ 595,833
9,316 TEMPLE-INLAND INCORPORATED 590,075
11,987,905
-----------
PERSONAL SERVICES - 0.16%
29,131 CINTAS CORPORATION 1,266,907
30,362 H & R BLOCK INCORPORATED 1,549,373
2,816,280
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.12%
15,306 AMERADA HESS CORPORATION 999,176
11,837 ASHLAND INCORPORATED 550,302
182,186 CHEVRONTEXACO CORPORATION 15,992,287
116,522 CONOCOPHILLIPS 8,134,401
1,116,810 EXXON MOBIL CORPORATION 46,448,128
57,948 MARATHON OIL CORPORATION 1,951,109
13,155 SUNOCO INCORPORATED 820,609
74,896,012
-----------
PRIMARY METAL INDUSTRIES - 0.43%
148,219 ALCOA INCORPORATED 5,141,717
13,734 ALLEGHENY TECHNOLOGIES INCORPORATED 166,181
21,366 ENGELHARD CORPORATION 638,630
13,333 NUCOR CORPORATION 819,713
19,276 UNITED STATES STEEL CORPORATION 718,417
14,718 WORTHINGTON INDUSTRIES INCORPORATED 282,144
7,766,802
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.41%
11,416 AMERICAN GREETINGS CORPORATION CLASS A+ 259,942
13,891 DOW JONES & COMPANY INCORPORATED 665,518
46,164 GANNETT COMPANY INCORPORATED 4,068,895
13,607 KNIGHT-RIDDER INCORPORATED 996,713
32,596 MCGRAW-HILL COMPANIES INCORPORATED 2,481,859
8,543 MEREDITH CORPORATION 431,934
25,525 NEW YORK TIMES COMPANY CLASS A 1,128,205
36,486 RR DONNELLEY & SONS COMPANY 1,103,702
56,230 TRIBUNE COMPANY 2,836,241
297,913 VIACOM INCORPORATED CLASS B 11,681,169
25,654,178
-----------
176
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RAILROAD TRANSPORTATION - 0.40%
63,355 BURLINGTON NORTHERN SANTA FE CORPORATION $ 1,995,683
36,449 CSX CORPORATION 1,104,040
66,591 NORFOLK SOUTHERN CORPORATION 1,470,995
44,082 UNION PACIFIC CORPORATION 2,636,985
7,207,703
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.28%
12,576 COOPER TIRE & RUBBER COMPANY 253,406
29,859 GOODYEAR TIRE & RUBBER COMPANY+ 254,996
44,812 NIKE INCORPORATED CLASS B 3,489,510
10,029 REEBOK INTERNATIONAL LIMITED 414,699
14,472 SEALED AIR CORPORATION+ 719,693
5,132,304
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 2.28%
17,661 BEAR STEARNS COMPANIES INCORPORATED 1,548,517
231,041 CHARLES SCHWAB CORPORATION 2,682,386
18,506 FEDERATED INVESTORS INCORPORATED CLASS B 581,644
42,477 FRANKLIN RESOURCES INCORPORATED 2,365,119
82,312 GOLDMAN SACHS GROUP INCORPORATED 8,589,257
47,219 LEHMAN BROTHERS HOLDINGS INCORPORATED 3,913,039
165,250 MERRILL LYNCH & COMPANY INCORPORATED 9,842,290
186,821 MORGAN STANLEY 10,705,007
21,435 T ROWE PRICE GROUP INCORPORATED 1,153,846
41,381,105
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.14%
229,557 CORNING INCORPORATED+ 2,566,447
-----------
TOBACCO PRODUCTS - 1.15%
348,569 ALTRIA GROUP INCORPORATED 18,979,582
14,413 RJ REYNOLDS TOBACCO HOLDINGS INCORPORATED 871,986
28,245 UST INCORPORATED 1,019,645
20,871,213
-----------
TRANSPORTATION BY AIR - 0.32%
21,026 DELTA AIR LINES INCORPORATED+ 166,526
50,817 FEDEX CORPORATION 3,819,406
134,441 SOUTHWEST AIRLINES COMPANY 1,910,406
5,896,338
-----------
TRANSPORTATION EQUIPMENT - 2.67%
143,477 BOEING COMPANY 5,892,601
15,948 BRUNSWICK CORPORATION 651,157
25,337 DANA CORPORATION 503,193
95,423 DELPHI CORPORATION 950,413
311,903 FORD MOTOR COMPANY 4,232,524
33,755 GENERAL DYNAMICS CORPORATION 3,015,334
95,713 GENERAL MOTORS CORPORATION 4,508,082
177
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (continued)
29,628 GENUINE PARTS COMPANY $ 969,428
20,029 GOODRICH CORPORATION 562,214
51,598 HARLEY-DAVIDSON INCORPORATED 2,752,237
146,261 HONEYWELL INTERNATIONAL INCORPORATED 4,950,935
32,112 JOHNSON CONTROLS INCORPORATED 1,899,425
76,788 LOCKHEED MARTIN CORPORATION 3,504,604
11,734 NAVISTAR INTERNATIONAL CORPORATION+ 538,004
31,784 NORTHROP GRUMMAN CORPORATION 3,128,181
29,808 PACCAR INCORPORATED 1,676,402
23,458 TEXTRON INCORPORATED 1,246,793
87,821 UNITED TECHNOLOGIES CORPORATION 7,578,952
48,560,479
--------------
TRANSPORTATION SERVICES - 0.03%
23,859 SABRE HOLDINGS CORPORATION 591,942
--------------
WATER TRANSPORTATION - 0.27%
107,295 CARNIVAL CORPORATION 4,818,618
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.83%
19,115 AMERISOURCEBERGEN CORPORATION 1,045,208
20,668 BROWN-FORMAN CORPORATION CLASS B 985,037
74,086 CARDINAL HEALTH INCORPORATED 5,104,526
49,568 MCKESSON CORPORATION 1,491,501
75,328 SAFEWAY INCORPORATED+ 1,550,250
22,889 SUPERVALU INCORPORATED 699,030
109,800 SYSCO CORPORATION 4,287,690
15,163,242
--------------
WHOLESALE TRADE-DURABLE GOODS - 0.05%
22,265 VISTEON CORPORATION 213,076
15,541 WW GRAINGER INCORPORATED 745,968
959,044
--------------
TOTAL COMMON STOCK (COST $1,493,348,252) 1,781,746,338
--------------
COLLATERAL FOR SECURITIES LENDING - 11.68%
COLLATERAL FOR SECURITY LENDING 212,187,464
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $212,187,464) 212,187,464
--------------
RIGHTS - 0.00%
32,300 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
178
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 1.77%
MUTUAL FUND - 1.63%
29,664,911 WELLS FARGO MONEY MARKET TRUST~ $ 29,664,911
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
US TREASURY BILLS - 0.14%
$1,130,000 US TREASURY BILL#^ 0.87% 05/13/2004 1,128,765
305,000 US TREASURY BILL#^ 0.90 05/13/2004 304,665
995,000 US TREASURY BILL#^ 0.95 05/13/2004 993,906
2,427,336
--------------
TOTAL SHORT-TERM INVESTMENTS
(COST $32,092,354) 32,092,247
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,737,628,070)* 111.56% $2,026,026,049
OTHER ASSETS AND LIABILITIES, NET (11.56) (209,922,881)
------ --------------
TOTAL NET ASSETS 100.00% $1,816,103,168
====== ==============
+ NON-INCOME EARNING SECURITIES.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $9,647,519.
^ 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.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS (SEE NOTE 2)
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
179
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.62%
AUSTRALIA - 4.06%
349,100 AMCOR LIMITED (RUBBER & MISCELLANEOUS PLASTICS
PRODUCTS) $ 2,132,169
1,277,500 BHP BILLITON LIMITED (OIL & GAS EXTRACTION) 11,957,300
546,600 NEWS CORPORATION LIMITED (PRINTING, PUBLISHING &
ALLIED INDUSTRIES) 4,915,827
19,005,296
-----------
AUSTRIA - 0.27%
8,500 ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG
(DEPOSITORY INSTITUTIONS) 1,272,274
-----------
BRAZIL - 0.53%
100,800 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR
(DEPOSITORY INSTITUTIONS) 2,466,576
-----------
CANADA - 2.23%
107,950 CANADIAN NATIONAL RAILWAY COMPANY (RAILROAD
TRANSPORTATION) 4,208,756
52,900 ENCANA CORPORATION (OIL & GAS EXTRACTION) 2,281,835
83,140 LOBLAW COMPANIES LIMITED (FOOD STORES) 3,960,102
10,450,693
-----------
DENMARK - 0.52%
345 A P MOLLER - MAERSK A S (LOCAL & SUB-TRANSIT &
INTERURBAN HIGHWAY PASS TRANSPORTATION) 2,460,116
-----------
FINLAND - 2.32%
362,200 NOKIA OYJ (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 7,424,357
272,600 STORA ENSO OYJ (PAPER & ALLIED PRODUCTS) 3,430,363
10,854,720
-----------
FRANCE - 10.95%
52,900 ACCOR SA (METAL MINING) 2,143,329
109,600 ALCATEL SA (COMMUNICATIONS)+ 1,729,378
162,100 ARCELOR SA (PRIMARY METAL INDUSTRIES) 2,940,246
43,740 AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 3,362,176
216,600 AXA (INSURANCE CARRIERS) 4,519,709
93,100 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 5,689,610
70,000 BOUYGUES SA (ENGINEERING CONSTRUCTION) 2,408,632
37,900 BUSINESS OBJECTS SA ADR (BUSINESS SERVICES)+ 1,080,150
10,900 CASINO GUICHARD-PERRACHON SA (FOOD STORES) 1,045,475
97,700 CREDIT AGRICOLE SA (DEPOSITORY INSTITUTIONS) 2,551,337
160,110 FRANCE TELECOM SA (COMMUNICATIONS) 4,096,505
30,800 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER
SERVICES)+ 2,263,426
46,000 PEUGEOT SA (AUTOMOTIVE DEALERS & GASOLINE SERVICE
STATIONS)+ 2,343,697
82,500 TOTAL SA (OIL & GAS EXTRACTION) 15,146,730
51,320,400
-----------
GERMANY - 6.10%
15,300 ALTANA AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 946,496
82,800 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS)+ 3,366,987
270,700 DEUTSCHE TELEKOM AG (COMMUNICATIONS)+ 4,863,512
56,450 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 3,718,288
43,720 SAP AG (BUSINESS SERVICES) 6,912,009
180
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (continued)
89,830 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) $ 6,631,219
86,200 T-ONLINE INTERNATIONAL AG (BUSINESS SERVICES)+ 1,027,527
60,900 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 1,131,575
28,597,613
------------
GREECE - 0.68%
103,300 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 3,181,235
------------
HONG KONG - 0.58%
297,500 SUNG HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 2,720,652
------------
IRELAND - 1.36%
140,800 ANGLO IRISH BANK CORPORATION PLC (DEPOSITORY
INSTITUTIONS) 2,249,367
204,777 BANK OF IRELAND PLC (DEPOSITORY INSTITUTIONS) 2,556,756
10,000 DEPFA BANK PLC (DEPOSITORY INSTITUTIONS) 1,572,984
6,379,107
------------
ITALY - 3.32%
196,400 BANCO POPOLARE DI VERONA E NOVARA SCRL (DEPOSITORY
INSTITUTIONS) 3,195,537
418,000 ENI SPA (OIL & GAS EXTRACTION) 8,403,765
144,800 MEDIASET SPA (COMMUNICATIONS) 1,606,832
493,200 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 2,351,631
15,557,765
------------
JAPAN - 23.69%
187,368 CANON INCORPORATED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 9,707,440
147,800 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING
CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 1,886,657
257 EACCESS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT)+ 1,141,289
47,500 FANUC LIMITED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 2,981,449
1,000 JAPAN TELECOM HOLDINGS COMPANY LIMITED
(COMMUNICATIONS) 2,460,710
194,400 JFE HOLDINGS INCORPORATED (PRIMARY METAL INDUSTRIES) 5,316,172
103,600 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 2,370,049
25,600 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 6,240,361
1,229,000 KOMATSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 7,796,799
91,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 1,234,210
1,062 MITSUBISHI TOKYO FINANCIAL GROUP INCORPORATED
(DEPOSITORY INSTITUTIONS) 10,514,346
197,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 2,478,714
741,000 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 8,297,833
660,793 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY
BROKERS, DEALERS, EXCHANGES & SERVICES) 12,036,360
2,085 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 4,609,506
56,700 RINNAI CORPORATION (BUILDING MATERIALS, HARDWARE,
GARDEN SUPPLY & MOBILE HOME DEALERS) 1,523,300
280,842 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 5,018,362
104,900 SHIN-ETSU CHEMICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 4,416,418
10,300 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 1,228,654
235,800 TOYOTA MOTOR CORPORATION (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 8,794,194
1,301 UFJ HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS) 8,278,579
77,400 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS
& ALLIED PRODUCTS) 2,663,450
110,994,852
------------
181
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEXICO - 0.80%
35,620 AMERICA MOVIL SA DE CV ADR SERIES L (COMMUNICATIONS) $ 1,376,713
79,431 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE
PRODUCTS) 2,368,632
3,745,345
-----------
NETHERLANDS - 4.85%
149,400 ASML HOLDING NV (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 2,737,427
46,600 EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY
(TRANSPORTATION BY AIR) 1,005,026
140,800 ING GROEP NV (FINANCIAL SERVICES) 3,093,745
367,600 KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS NV
(ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 10,629,474
111,200 ROYAL DUTCH PETROLEUM COMPANY (PETROLEUM
REFINING & RELATED INDUSTRIES) 5,281,638
22,747,310
-----------
PORTUGAL - 0.41%
687,900 ELECTRICIDADE DE PORTUGAL SA (ELECTRONIC &
OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 1,944,319
-----------
SOUTH KOREA - 0.67%
9,000 SAMSUNG ELECTRONICS (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT)! 1,320,817
2,420 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC
& OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 1,207,414
4,200 SAMSUNG ELECTRONICS COMPANY LIMITED GDR
(ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 605,850
3,134,081
-----------
SPAIN - 1.68%
523,100 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY
INSTITUTIONS) 5,689,084
106,341 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,203,295
7,892,379
-----------
SWEDEN - 1.78%
92,900 AB SKF CLASS B (PRIMARY METAL INDUSTRIES) 3,363,041
94,100 HENNES & MAURITZ AB CLASS B (APPAREL & OTHER
FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 2,533,025
878,800 TELEFONAKTIEBOLAGET LM ERICSSON CLASS B
(COMMUNICATIONS)+ 2,435,511
8,331,577
-----------
SWITZERLAND - 10.36%
43,400 COMPAGNIE FINANCIERE RICHEMONT AG (GENERAL
MERCHANDISE STORES) 1,166,492
104,400 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT
INSTITUTIONS)+ 3,617,761
45,610 HOLCIM LIMITED (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 2,439,182
32,000 NESTLE SA (FOOD & KINDRED PRODUCTS) 8,158,819
209,100 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 8,879,962
54,200 ROCHE HOLDING AG (HEALTH SERVICES) 5,294,431
3,600 SGS SOCIETE GENERALE DE SURVEILLANCE HOLDING SA
(BUSINESS SERVICES) 1,997,711
221,900 STMICROELECTRONICS NV (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 5,230,223
45,360 SWISS REINSURANCE (INSURANCE CARRIERS) 3,125,806
116,100 UBS AG (FINANCIAL SERVICES) 8,623,760
48,534,147
-----------
182
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TAIWAN - 0.42%
188,400 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY
LIMITED ADR (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ $ 1,966,896
------------
UNITED KINGDOM - 18.63%
738,100 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 6,501,154
703,900 BP PLC (OIL & GAS EXTRACTION) 5,899,143
207,100 BRITISH SKY BROADCASTING PLC (COMMUNICATIONS) 2,582,516
743,100 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES) 3,117,247
903,200 COMPASS GROUP PLC (EATING & DRINKING PLACES) 5,950,949
277,800 DIAGEO PLC (FOOD & KINDRED PRODUCTS) 3,619,859
337,700 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 6,628,503
18,500 GLAXOSMITHKLINE PLC ADR (CHEMICALS & ALLIED
PRODUCTS) 739,075
583,300 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 8,672,686
221,200 HSBC HOLDINGS PLC (HONG KONG REGISTERED) (NON-
DEPOSITORY CREDIT INSTITUTIONS) 3,335,986
236,300 RECKITT BENCKISER PLC (CHEMICALS & ALLIED PRODUCTS) 5,841,161
204,100 RIO TINTO PLC (METAL MINING) 5,033,947
185,950 ROYAL BANK OF SCOTLAND GROUP PLC (DEPOSITORY
INSTITUTIONS) 5,666,225
453,100 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 4,459,300
469,500 TESCO PLC (FOOD & KINDRED PRODUCTS) 2,120,519
5,385,700 VODAFONE GROUP PLC (COMMUNICATIONS) 12,743,905
433,400 WPP GROUP PLC (COMMUNICATIONS) 4,384,898
87,297,073
------------
USA - 0.41%
66,230 UTSTARCOM INCORPORATED (COMMUNICATIONS)+ 1,904,775
------------
TOTAL COMMON STOCK (COST $365,674,322) 452,759,201
------------
COLLATERAL FOR SECURITIES LENDING - 6.93%
COLLATERAL FOR SECURITY LENDING 32,499,510
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $32,499,510) 32,499,510
------------
SHORT-TERM INVESTMENTS - 3.07%
MUTUAL FUND - 3.07%
14,367,873 WELLS FARGO MONEY MARKET TRUST~ 14,367,873
------------
TOTAL SHORT-TERM INVESTMENTS (COST $14,367,873) 14,367,873
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $412,541,705)* 106.62% $499,626,584
OTHER ASSETS AND LIABILITIES, NET (6.62) (31,029,326)
------ ------------
TOTAL NET ASSETS 100.00% $468,597,258
====== ============
+ NON-INCOME EARNING 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.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
183
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 97.75%
AMUSEMENT & RECREATION SERVICES - 1.11%
24,300 INTERNATIONAL GAME TECHNOLOGY $ 1,092,528
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 1.05%
29,400 D.R. HORTON INCORPORATED 1,041,642
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 1.04%
27,400 HOME DEPOT INCORPORATED 1,023,664
------------
BUSINESS SERVICES - 5.96%
22,300 ELECTRONIC ARTS INCORPORATED+ 1,203,308
50,000 MICROSOFT CORPORATION 1,248,500
102,400 ORACLE CORPORATION+ 1,229,824
23,300 SYMANTEC CORPORATION+ 1,078,790
23,300 YAHOO! INCORPORATED+ 1,132,147
5,892,569
------------
CHEMICALS & ALLIED PRODUCTS - 8.72%
14,000 AVON PRODUCTS INCORPORATED 1,062,180
10,300 GENENTECH INCORPORATED+ 1,089,946
86,500 PFIZER INCORPORATED 3,031,825
12,300 PROCTER & GAMBLE COMPANY 1,290,024
19,700 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 1,249,177
20,900 WATSON PHARMACEUTICALS INCORPORATED+ 894,311
8,617,463
------------
DEPOSITORY INSTITUTIONS - 10.01%
14,000 BANK OF AMERICA CORPORATION 1,133,720
19,500 BANK ONE CORPORATION 1,063,140
38,600 CITIGROUP INCORPORATED 1,995,620
21,800 FLEETBOSTON FINANCIAL CORPORATION 978,820
10,800 GOLDEN WEST FINANCIAL CORPORATION 1,209,060
38,400 JP MORGAN CHASE & COMPANY 1,610,880
20,300 NORTHERN TRUST CORPORATION 945,777
18,300 STATE STREET CORPORATION 953,979
9,890,996
------------
EATING & DRINKING PLACES - 0.97%
23,500 WENDY'S INTERNATIONAL INCORPORATED 956,215
------------
EDUCATIONAL SERVICES - 1.10%
12,600 APOLLO GROUP INCORPORATED CLASS A+ 1,084,986
------------
ELECTRIC, GAS & SANITARY SERVICES - 1.28%
18,400 EXELON CORPORATION 1,267,208
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 14.00%
20,400 ANALOG DEVICES INCORPORATED 979,404
29,900 BROADCOM CORPORATION CLASS A+ 1,171,183
97,800 GENERAL ELECTRIC COMPANY 2,984,856
184
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
14,300 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED $ 1,138,280
35,900 INTEL CORPORATION 976,480
10,300 INTERNATIONAL BUSINESS MACHINES CORPORATION 945,952
299,300 LUCENT TECHNOLOGIES INCORPORATED+ 1,230,123
61,500 MOTOROLA INCORPORATED 1,082,400
45,600 NETWORK APPLIANCE INCORPORATED+ 978,120
16,600 QUALCOMM INCORPORATED 1,102,572
42,700 TEXAS INSTRUMENTS INCORPORATED 1,247,694
13,837,064
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 2.08%
13,600 FORTUNE BRANDS INCORPORATED 1,042,168
12,800 ILLINOIS TOOL WORKS INCORPORATED 1,014,144
2,056,312
-----------
FOOD & KINDRED PRODUCTS - 1.02%
12,200 HERSHEY FOODS CORPORATION 1,010,770
-----------
FOOD STORES - 1.03%
27,000 STARBUCKS CORPORATION+ 1,019,250
-----------
GENERAL MERCHANDISE STORES - 2.13%
19,100 FEDERATED DEPARTMENT STORES INCORPORATED 1,032,355
30,900 JC PENNEY COMPANY INCORPORATED 1,074,702
2,107,057
-----------
HEALTH SERVICES - 0.99%
29,400 CAREMARK RX INCORPORATED+ 977,550
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 1.04%
25,400 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 1,028,700
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 11.08%
37,200 APPLE COMPUTER INCORPORATED+ 1,006,260
50,700 APPLIED MATERIALS INCORPORATED+ 1,083,966
13,100 CATERPILLAR INCORPORATED 1,035,817
92,300 CISCO SYSTEMS INCORPORATED+ 2,170,896
82,600 EMC CORPORATION+ 1,124,186
16,200 INGERSOLL-RAND COMPANY CLASS A 1,095,930
13,300 LEXMARK INTERNATIONAL INCORPORATED+ 1,223,600
17,800 PARKER HANNIFIN CORPORATION 1,005,700
13,900 VARIAN MEDICAL SYSTEMS INCORPORATED+ 1,199,709
10,946,064
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 1.00%
23,100 ACE LIMITED 985,446
-----------
INSURANCE CARRIERS - 5.29%
12,500 AETNA INCORPORATED 1,121,500
34,000 ALLSTATE CORPORATION 1,545,640
185
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (continued)
18,500 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED $1,178,450
21,500 UNITEDHEALTH GROUP INCORPORATED 1,385,460
5,231,050
----------
LEATHER & LEATHER PRODUCTS - 1.15%
27,600 COACH INCORPORATED+ 1,131,324
----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 4.25%
35,100 AGILENT TECHNOLOGIES INCORPORATED+ 1,110,213
24,900 BOSTON SCIENTIFIC CORPORATION+ 1,055,262
10,600 C.R. BARD INCORPORATED 1,034,984
13,800 ST JUDE MEDICAL INCORPORATED+ 994,980
4,195,439
----------
METAL MINING - 2.19%
26,400 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 1,031,976
13,800 PHELPS DODGE CORPORATION+ 1,126,908
2,158,884
----------
MOTION PICTURES - 0.97%
38,200 WALT DISNEY COMPANY 954,618
----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.22%
17,300 UNITED PARCEL SERVICE INCORPORATED CLASS B 1,208,232
----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 3.49%
15,400 CAPITAL ONE FINANCIAL CORPORATION 1,161,622
26,000 CIT GROUP INCORPORATED 989,300
47,100 MBNA CORPORATION 1,301,373
3,452,295
----------
OIL & GAS EXTRACTION - 5.97%
28,500 APACHE CORPORATION 1,230,345
20,100 KERR-MCGEE CORPORATION 1,035,150
25,200 OCCIDENTAL PETROLEUM CORPORATION 1,160,460
20,500 SCHLUMBERGER LIMITED 1,308,925
46,125 XTO ENERGY INCORPORATED 1,164,195
5,899,075
----------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.15%
16,200 CONOCOPHILLIPS 1,130,922
----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.17%
14,900 NIKE INCORPORATED CLASS B 1,160,263
----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 4.33%
80,900 AMERITRADE HOLDING CORPORATION+ 1,245,860
14,200 GOLDMAN SACHS GROUP INCORPORATED 1,481,770
26,100 MERRILL LYNCH & COMPANY INCORPORATED 1,554,516
4,282,146
----------
186
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 0.96%
24,200 SYSCO CORPORATION $ 945,010
------------
TOTAL COMMON STOCK (COST $84,598,488) 96,584,742
------------
COLLATERAL FOR SECURITIES LENDING - 12.36%
COLLATERAL FOR SECURITY LENDING 12,213,589
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $12,213,589) 12,213,589
------------
SHORT-TERM INVESTMENTS - 2.06%
MUTUAL FUND - 2.06%
2,035,360 WELLS FARGO MONEY MARKET TRUST~ 2,035,360
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,035,360) 2,035,360
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $98,847,437)* 112.17% $110,833,691
OTHER ASSETS AND LIABILITIES, NET (12.17) (12,021,513)
------ ------------
TOTAL NET ASSETS 100.00% $ 98,812,178
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
187
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 95.42%
AMUSEMENT & RECREATION SERVICES - 0.97%
158,200 CAESARS ENTERTAINMENT INCORPORATED+ $ 2,062,928
-----------
APPAREL & ACCESSORY STORES - 3.12%
62,900 ABERCROMBIE & FITCH COMPANY CLASS A 2,128,536
100,800 GAP INCORPORATED 2,209,536
114,300 LIMITED BRANDS 2,286,000
6,624,072
-----------
BUSINESS SERVICES - 4.58%
135,200 AMDOCS LIMITED+ 3,757,208
49,700 AUTODESK INCORPORATED 1,571,514
51,100 GETTY IMAGES INCORPORATED+ 2,758,378
65,900 MICROSOFT CORPORATION 1,645,523
9,732,623
-----------
CHEMICALS & ALLIED PRODUCTS - 4.03%
51,400 DOW CHEMICAL COMPANY 2,070,392
14,600 INVITROGEN CORPORATION+ 1,046,674
89,000 PFIZER INCORPORATED 3,119,450
58,600 ROHM & HAAS COMPANY 2,334,624
8,571,140
-----------
COMMUNICATIONS - 5.35%
92,000 AVAYA INCORPORATED+ 1,460,960
149,900 BELLSOUTH CORPORATION 4,150,731
54,200 COMCAST CORPORATION CLASS A+ 1,557,708
115,000 VERIZON COMMUNICATIONS INCORPORATED 4,202,100
11,371,499
-----------
DEPOSITORY INSTITUTIONS - 12.96%
73,600 BANK OF AMERICA CORPORATION 5,960,128
180,800 CITIGROUP INCORPORATED 9,347,360
155,100 JP MORGAN CHASE & COMPANY 6,506,445
51,500 NATIONAL CITY CORPORATION 1,832,370
183,000 SOVEREIGN BANCORP INCORPORATED 3,919,860
27,566,163
-----------
EATING & DRINKING PLACES - 1.75%
130,600 MCDONALD'S CORPORATION 3,731,242
ELECTRIC, GAS & SANITARY SERVICES - 3.64%
134,700 AES CORPORATION+ 1,148,991
36,900 EXELON CORPORATION 2,541,303
29,600 FPL GROUP INCORPORATED 1,978,760
57,100 QUESTAR CORPORATION 2,080,724
7,749,778
-----------
188
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 5.88%
499,500 AGERE SYSTEMS INCORPORATED CLASS A+ $ 1,603,395
66,300 ANDREW CORPORATION+ 1,160,250
129,000 GENERAL ELECTRIC COMPANY 3,937,080
93,100 INTEL CORPORATION 2,532,320
36,700 JABIL CIRCUIT INCORPORATED+ 1,080,081
277,700 LUCENT TECHNOLOGIES INCORPORATED+ 1,141,347
49,100 POLYCOM INCORPORATED+ 1,042,393
12,496,866
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.77%
24,300 BALL CORPORATION 1,647,054
-----------
GENERAL MERCHANDISE STORES - 1.23%
75,900 MAY DEPARTMENT STORES COMPANY 2,624,622
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.93%
59,800 RADIOSHACK CORPORATION 1,982,968
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.11%
5,000 MGM MIRAGE+ 226,700
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.24%
13,000 3M COMPANY 1,064,310
40,600 APPLE COMPUTER INCORPORATED+ 1,098,230
92,500 BLACK & DECKER CORPORATION 5,266,950
62,800 LAM RESEARCH CORPORATION+ 1,583,188
9,012,678
-----------
INSURANCE CARRIERS - 5.71%
55,900 AMERICAN INTERNATIONAL GROUP INCORPORATED 3,988,465
19,900 ANTHEM INCORPORATED+ 1,803,736
34,000 LINCOLN NATIONAL CORPORATION 1,608,880
22,300 MGIC INVESTMENT CORPORATION 1,432,329
46,700 PACIFICARE HEALTH SYSTEMS INCORPORATED+ 1,846,985
33,900 SAFECO CORPORATION 1,463,463
12,143,858
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.88%
27,600 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+ 1,519,104
20,100 MILLIPORE CORPORATION+ 1,032,738
59,500 ROCKWELL AUTOMATION INCORPORATED 2,062,865
63,200 TERADYNE INCORPORATED+ 1,506,056
6,120,763
-----------
METAL MINING - 0.85%
22,100 PHELPS DODGE CORPORATION+ 1,804,686
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.50%
48,900 HASBRO INCORPORATED 1,063,575
-----------
189
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 2.54%
49,100 COSTCO WHOLESALE CORPORATION+ $ 1,844,196
56,400 CVS CORPORATION 1,990,920
62,000 STAPLES INCORPORATED 1,574,180
5,409,296
-----------
MOTION PICTURES - 1.32%
111,900 WALT DISNEY COMPANY 2,796,381
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 5.59%
25,000 AMERICAN EXPRESS COMPANY 1,296,250
59,300 CIT GROUP INCORPORATED 2,256,365
18,000 COUNTRYWIDE FINANCIAL CORPORATION 1,726,200
24,800 FANNIE MAE 1,843,880
95,100 MBNA CORPORATION 2,627,613
163,800 PROVIDIAN FINANCIAL CORPORATION+ 2,145,780
11,896,088
-----------
OIL & GAS EXTRACTION - 1.82%
115,000 CHESAPEAKE ENERGY CORPORATION 1,541,000
50,800 NABORS INDUSTRIES LIMITED+ 2,324,100
3,865,100
-----------
PAPER & ALLIED PRODUCTS - 1.56%
52,600 KIMBERLY-CLARK CORPORATION 3,319,060
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.59%
47,900 CHEVRONTEXACO CORPORATION 4,204,662
34,300 CONOCOPHILLIPS 2,394,483
127,100 EXXON MOBIL CORPORATION 5,286,089
126,700 MARATHON OIL CORPORATION 4,265,989
16,151,223
-----------
PRIMARY METAL INDUSTRIES - 2.57%
98,300 ALCOA INCORPORATED 3,410,027
53,300 INTERNATIONAL STEEL GROUP INCORPORATED+ 2,062,710
5,472,737
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.98%
52,900 VIACOM INCORPORATED CLASS B 2,074,209
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 6.36%
24,000 BEAR STEARNS COMPANIES INCORPORATED 2,104,320
133,100 FRIEDMAN BILLINGS RAMSEY GROUP INCORPORATED CLASS A 3,592,369
21,000 GOLDMAN SACHS GROUP INCORPORATED 2,191,350
57,000 MERRILL LYNCH & COMPANY INCORPORATED 3,394,920
39,000 MORGAN STANLEY 2,234,700
13,517,659
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.97%
375,200 CORNING INCORPORATED+ 4,194,736
-----------
190
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TOBACCO PRODUCTS - 1.34%
52,500 ALTRIA GROUP INCORPORATED $ 2,858,625
------------
TRANSPORTATION BY AIR - 1.00%
166,200 AMR CORPORATION+ 2,115,726
------------
TRANSPORTATION EQUIPMENT - 1.28%
32,700 GOODRICH CORPORATION 917,889
21,000 UNITED TECHNOLOGIES CORPORATION 1,812,300
2,730,189
------------
TOTAL COMMON STOCK (COST $186,319,744) 202,934,244
------------
COLLATERAL FOR SECURITIES LENDING - 17.74%
COLLATERAL FOR SECURITY LENDING 37,724,746
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $37,724,746) 37,724,746
------------
SHORT-TERM INVESTMENTS - 5.03%
MUTUAL FUND - 5.03%
10,690,546 WELLS FARGO MONEY MARKET TRUST~ 10,690,546
------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,690,546) 10,690,546
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $234,735,036)* 118.19% $251,349,536
OTHER ASSETS AND LIABILITIES, NET (18.19) (38,684,876)
------ ------------
TOTAL NET ASSETS 100.00% $212,664,660
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
191
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
- --------- ------------- ------------
COMMON STOCK - 99.01%
APPAREL & ACCESSORY STORES - 3.16%
2,331,200 KOHLS CORPORATION+ $112,666,896
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 9.06%
1,348,400 FASTENAL COMPANY 72,395,596
3,421,317 HOME DEPOT INCORPORATED 127,820,403
2,183,900 LOWE'S COMPANIES INCORPORATED 122,582,307
322,798,306
------------
BUSINESS SERVICES - 22.62%
866,400 AUTOMATIC DATA PROCESSING INCORPORATED 36,388,800
3,379,200 EBAY INCORPORATED+ 234,279,936
3,850,000 FIRST DATA CORPORATION 162,316,000
2,822,768 FISERV INCORPORATED+ 100,970,411
7,325,620 MICROSOFT CORPORATION 182,920,732
1,795,900 SUNGARD DATA SYSTEMS INCORPORATED+ 49,207,660
1,466,100 VERITAS SOFTWARE CORPORATION+ 39,452,751
805,536,290
------------
CHEMICALS & ALLIED PRODUCTS - 7.90%
1,425,600 AMGEN INCORPORATED+ 82,927,152
625,100 GENENTECH INCORPORATED+ 66,148,082
3,776,025 PFIZER INCORPORATED 132,349,676
281,424,910
------------
DEPOSITORY INSTITUTIONS - 1.46%
997,200 STATE STREET CORPORATION 51,984,036
------------
EDUCATIONAL SERVICES - 1.62%
670,400 APOLLO GROUP INCORPORATED CLASS A+ 57,728,144
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 10.59%
7,215,650 INTEL CORPORATION 196,265,680
1,440,500 LINEAR TECHNOLOGY CORPORATION 53,327,310
6,292,400 NOKIA OYJ ADR 127,609,872
377,202,862
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 4.15%
4,153,610 PAYCHEX INCORPORATED 147,868,516
------------
GENERAL MERCHANDISE STORES - 0.88%
867,100 FAMILY DOLLAR STORES INCORPORATED 31,172,245
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 10.20%
7,745,600 CISCO SYSTEMS INCORPORATED+ 182,176,512
3,422,600 DELL INCORPORATED+ 115,067,812
4,847,000 EMC CORPORATION+ 65,967,670
363,211,994
------------
192
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 5.05%
2,519,116 AMERICAN INTERNATIONAL GROUP INCORPORATED $ 179,738,927
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.34%
3,985,500 MEDTRONIC INCORPORATED 190,307,625
--------------
MISCELLANEOUS RETAIL - 2.60%
1,548,900 WAL-MART STORES INCORPORATED 92,453,841
--------------
PERSONAL SERVICES - 2.74%
2,244,150 CINTAS CORPORATION 97,598,083
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 10.18%
11,648,787 CHARLES SCHWAB CORPORATION 135,242,417
763,700 FRANKLIN RESOURCES INCORPORATED 42,522,816
1,769,650 GOLDMAN SACHS GROUP INCORPORATED 184,662,978
362,428,211
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.46%
755,480 CARDINAL HEALTH INCORPORATED 52,052,572
--------------
TOTAL COMMON STOCK (COST $2,973,213,252) 3,526,173,458
--------------
COLLATERAL FOR SECURITIES LENDING - 6.02%
COLLATERAL FOR SECURITY LENDING 214,294,999
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $214,294,999) 214,294,999
--------------
SHORT-TERM INVESTMENTS - 0.95%
MUTUAL FUND - 0.95%
33,844,662 WELLS FARGO MONEY MARKET TRUST~ 33,844,662
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $33,844,662) 33,844,662
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $3,221,352,913)* 105.98% $3,774,313,119
OTHER ASSETS AND LIABILITIES, NET (5.98) (213,095,411)
------ --------------
TOTAL NET ASSETS 100.00% $3,561,217,708
====== ==============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
193
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.22%
AUSTRALIA - 4.51%
312,100 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING
INDUSTRIES) $ 1,501,122
243,100 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,172,961
195,300 CALTEX AUSTRALIA LIMITED (PETROLEUM REFINING &
RELATED INDUSTRIES) 1,069,063
25,200 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY
INSTITUTIONS) 596,409
198,700 SEVEN NETWORK LIMITED (PRINTING, PUBLISHING & ALLIED
INDUSTRIES) 800,965
561,900 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 1,947,586
7,088,106
-----------
AUSTRIA - 0.46%
3,800 OMV AG (OIL & GAS EXTRACTION) 719,149
-----------
BELGIUM - 0.84%
22,700 KBC BANK VERZEKERINGS HOLDINGS (DEPOSITORY
INSTITUTIONS) 1,327,844
-----------
DENMARK - 1.02%
15,900 BANG AND OLUFSEN AS (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 842,471
16,800 DANSKE BANK (DEPOSITORY INSTITUTIONS) 379,912
10,600 TDS AS (COMMUNICATIONS) 386,679
1,609,062
-----------
FINLAND - 1.84%
37,400 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 382,392
88,100 KEMIRA OYJ (CHEMICALS & ALLIED PRODUCTS) 1,175,764
38,500 KESKO OYJ (FOOD STORES) 676,568
71,100 M-REAL OYJ (PAPER & ALLIED PRODUCTS) 659,676
2,894,400
-----------
FRANCE - 9.45%
6,753 ASSURANCES GENERALES DE FRANCE (INSURANCE CARRIERS) 419,085
52,800 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 3,226,760
7,600 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 438,961
44,900 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS &
CONCRETE PRODUCTS) 2,268,340
7,000 IMERYS SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,666,257
13,700 RALLYE SA (GENERAL MERCHANDISE STORES) 798,861
24,100 RENAULT SA (TRANSPORTATION EQUIPMENT) 1,668,881
24,300 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 2,075,417
5,300 TOTAL SA (OIL & GAS EXTRACTION) 973,063
31,800 VALEO SA (TRANSPORTATION EQUIPMENT) 1,319,301
14,854,926
-----------
GERMANY - 6.57%
76,700 BAYER AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 1,867,214
13,335 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 878,359
11,500 FRESENIUS AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 805,399
43,163 IKB DEUTSCHE INDUSTRIEBANK AG (DEPOSITORY INSTITUTIONS) 1,047,594
48,700 KARSTADTQUELLE AG (GENERAL MERCHANDISE STORES) 1,076,051
44,500 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 1,585,888
194
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (continued)
99,900 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) $ 1,856,229
53,300 TUI AG (TRANSPORTATION BY AIR) 1,215,026
10,331,760
-----------
GREECE - 0.31%
89,000 INTRACOM SA (COMMUNICATIONS) 489,984
-----------
HONG KONG - 1.17%
336,000 CITIC PACIFIC LIMITED (MISCELLANEOUS RETAIL) 948,775
2,085,000 CNOOC LIMITED (OIL & GAS EXTRACTION)+ 889,813
1,838,588
-----------
IRELAND - 0.92%
88,600 IRISH LIFE AND PERMANENT PLC
(NON-DEPOSITORY CREDIT INSTITUTIONS) 1,452,459
-----------
ITALY - 3.93%
68,400 BANCA POPOLARE DI MILANO SCRL (DEPOSITORY
INSTITUTIONS) 397,587
553,000 CASSA DI RISPARMIO DI FIRENZ SPA (DEPOSITORY
INSTITUTIONS) 992,184
537,300 COMPAGNIE INDUSTRIALI RIUNITE (PRINTING, PUBLISHING
& ALLIED INDUSTRIES) 1,039,948
142,300 CREDITO EMILIANO SPA (DEPOSITORY INSTITUTIONS) 989,773
60,395 ENI SPA (OIL & GAS EXTRACTION) 1,214,224
169,000 ERG SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 888,883
36,940 RIUNIONE ADRIATICA SI SICURTA SPA (INSURANCE
CARRIERS) 660,502
6,183,101
-----------
JAPAN - 23.72%
14,100 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,030,038
139,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 1,618,460
32,200 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED
PRODUCTS) 823,300
69,700 DAIICHI PHARMACEUTICAL COMPANY LIMITED (MEASURING,
ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 1,353,333
20,500 DENSO CORPORATION (TRANSPORTATION EQUIPMENT) 467,006
59,700 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,126,458
31,600 HITACHI MAXELL LIMIED (MISCELLANEOUS MANUFACTURING
INDUSTRIES) 490,850
24,600 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION
EQUIPMENT) 1,135,003
88,500 KANSAI ELECTRIC POWER COMPANY INCORPORATED
(ELECTRIC, GAS & SANITARY SERVICES) 1,674,980
70,000 KIRIN BREWERY COMPANY LIMITED (FOOD & KINDRED
PRODUCTS) 755,611
23,000 KISSEI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 499,640
52,000 MAKITA CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 669,275
719,000 MARUBENI CORPORATION (BUSINESS SERVICES) 1,955,851
474,000 MITSUBISHI CHEMICAL CORPORATION (CHEMICALS & ALLIED
PRODUCTS) 1,448,859
96,200 NIHON UNISYS LIMITED (INDUSTRIAL & COMMERCIAL
MACHINERY & COMPUTER EQUIPMENT) 814,651
600 NIPPON TELEGRAPH & TELEPHONE CORPORATION
(COMMUNICATIONS) 3,402,701
75,600 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 846,580
27,600 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,896,862
44,500 RYOSAN COMPANY LIMITED (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 975,249
39,450 SAMMY CORPORATION (MISCELLANEOUS MANUFACTURING
INDUSTRIES) 1,520,589
63,700 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS
& ALLIED PRODUCTS) 1,065,391
42,800 SHOWA SHELL SEKIYU KK (PETROLEUM REFINING & RELATED
INDUSTRIES) 382,191
195
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (continued)
41,000 TAISHO PHARMACEUTICAL COMPANY LIMITED (MEASURING,
ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) $ 792,137
13,100 TAKEFUJI CORPORATION (NON-DEPOSITORY CREDIT
INSTITUTIONS) 912,914
135,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED
PRODUCTS) 1,356,034
265,000 TOHO GAS COMPANY LIMITED (PETROLEUM REFINING & RELATED
INDUSTRIES) 967,943
220,000 TOSHIBA TEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,034,075
19,000 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS
MANUFACTURING INDUSTRIES) 420,051
117,500 TOYOTA MOTOR CORPORATION (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 4,382,179
42,900 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 1,476,253
37,294,464
-----------
NETHERLANDS - 4.13%
47,500 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS)+ 1,059,460
167,800 AEGON NV (INSURANCE CARRIERS)+ 2,144,567
61,800 ING GROEP NV (FINANCIAL SERVICES) 1,357,908
44,200 OCE NV (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 753,378
25,000 ROYAL DUTCH PETROLEUM COMPANY (PETROLEUM REFINING &
RELATED INDUSTRIES) 1,187,419
6,502,732
-----------
NORWAY - 0.78%
75,600 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 495,496
10,420 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 655,628
10,420 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES)+ 75,579
1,226,703
-----------
PORTUGAL - 0.43%
272,700 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 673,590
-----------
SINGAPORE - 1.48%
128,000 FRASER & NEAVE LIMITED (FOOD & KINDRED PRODUCTS) 1,114,869
101,500 JARDINE STRATEGIC HOLDINGS (DEPOSITORY INSTITUTIONS) 501,410
508,900 SINGAPORE TELECOMMUNICATIONS LIMITED (COMMUNICATIONS) 707,375
2,323,654
-----------
SPAIN - 3.44%
119,800 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 2,178,878
168,900 IBERIA LINEAS AEREAS DE ESPANA SA (TRANSPORTATION BY
AIR) 550,034
129,600 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,685,202
5,414,114
-----------
SWEDEN - 2.20%
25,900 FORENINGSSPARBANKEN AB (DEPOSITORY INSTITUTIONS) 480,819
301,900 NORDEA AB (DEPOSITORY INSTITUTIONS) 2,061,694
62,390 SKANDINAVISKA ENSKILDA BANKEN AB (DEPOSITORY
INSTITUTIONS) 914,178
3,456,691
-----------
196
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND - 6.92%
8,600 CONVERIUM HOLDING AG (INSURANCE CARRIERS) $ 420,886
12,300 LONZA GROUP AG (CHEMICALS & ALLIED PRODUCTS) 627,695
2,115 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 534,239
20,600 SAURER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT)+ 907,353
2,900 SULZER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 721,080
6,200 SWISSCOM AG (COMMUNICATIONS) 2,035,916
54,500 UBS AG (FINANCIAL SERVICES) 4,048,190
3,100 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 767,139
38,600 VONTOBEL HOLDINGS AG (DEPOSITORY INSTITUTIONS) 822,670
10,885,168
-----------
UNITED KINGDOM - 25.10%
78,300 ALLIANCE & LEICESTER PLC (DEPOSITORY INSTITUTIONS) 1,257,727
134,200 ARRIVA PLC (TRANSPORTATION BY AIR) 931,687
82,714 AVIVA PLC (INSURANCE CARRIERS) 802,650
371,100 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 3,268,633
97,900 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 1,119,145
209,400 BBA GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 980,402
62,400 BERKELEY GROUP PLC (PRIVATE HOUSEHOLDS) 1,206,461
385,300 BIG FOOD GROUP PLC (FOOD STORES) 984,299
17,000 BOOTS GROUP PLC (GENERAL MERCHANDISE STORES) 193,555
164,400 BRADFORD & BINGLEY PLC (NON-DEPOSITORY CREDIT
INSTITUTIONS) 891,327
167,300 BRITISH VITA PLC (CHEMICALS & ALLIED PRODUCTS) 808,658
479,687 BT GROUP PLC (COMMUNICATIONS) 1,560,430
94,200 DAVIS SERVICE GROUP PLC (BUSINESS SERVICES) 642,300
529,200 DIXONS GROUP PLC (GENERAL MERCHANDISE STORES) 1,497,800
211,300 DS SMITH PLC (PAPER & ALLIED PRODUCTS) 652,412
78,400 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 386,517
126,850 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 1,019,957
254,200 GKL PLC (TRANSPORTATION EQUIPMENT) 1,124,747
184,700 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,418,915
37,300 HBOS PLC (DEPOSITORY INSTITUTIONS) 505,916
354,100 J SAINSBURY PLC (FOOD & KINDRED PRODUCTS)+ 1,696,928
172,200 JJB SPORTS PLC (APPAREL & ACCESSORY STORES) 1,015,901
58,000 KELDA GROUP PLC (ELECTRIC, GAS & SANITARY SERVICES) 480,482
350,000 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 2,659,847
237,100 NORTHERN FOODS PLC (FOOD & KINDRED PRODUCTS) 701,569
676,500 OLD MUTUAL PLC (INSURANCE CARRIERS) 1,255,747
688,900 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,133,163
112,900 RMC GROUP PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,306,179
402,200 ROLLS ROYCE GROUP CLASS (TRANSPORTATION EQUIPMENT)+ 36,959
402,200 ROLLS ROYCE GROUP PLC (TRANSPORTATION EQUIPMENT) 1,663,174
231,200 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 1,617,860
45,800 SEVERN TRENT PLC (WATER TRANSPORTATION) 640,565
224,400 SHELL TRANSPORT & TRADING COMPANY PLC (OIL & GAS
EXTRACTION) 1,466,140
144,800 SINGER & FRIEDLANDER GROUP PLC (NON-DEPOSITORY CREDIT
INSTITUTIONS) 634,037
197
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (continued)
88,700 UNITED UTILITIES PLC (ELECTRIC, GAS & SANITARY
SERVICES) $ 846,066
68,700 WOLVERHAMPTON & DUDLEY BREWERIES PLC (FOOD & KINDRED
PRODUCTS) 1,063,750
39,471,905
------------
TOTAL COMMON STOCK (COST $134,235,543) 156,038,400
------------
COLLATERAL FOR SECURITIES LENDING - 4.90%
COLLATERAL FOR SECURITY LENDING 7,702,520
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $7,702,520) 7,702,520
------------
SHORT-TERM INVESTMENTS - 0.28%
MUTUAL FUND - 0.28%
431,711 WELLS FARGO MONEY MARKET TRUST~ 431,711
------------
TOTAL SHORT-TERM INVESTMENTS (COST $431,711) 431,711
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $142,369,774)* 104.40% $164,172,631
OTHER ASSETS AND LIABILITIES, NET (4.40) (6,914,626)
------ ------------
TOTAL NET ASSETS 100.00% $157,258,005
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
198
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.16%
AGRICULTURAL PRODUCTION CROPS - 0.20%
24,871 DELTA & PINE LAND COMPANY $ 620,531
----------
AMUSEMENT & RECREATION SERVICES - 0.56%
19,145 ARGOSY GAMING COMPANY+ 680,605
22,221 BALLY TOTAL FITNESS HOLDING CORPORATION+ 130,215
23,138 PINNACLE ENTERTAINMENT+ 319,304
19,506 WMS INDUSTRIES INCORPORATED+ 604,686
1,734,810
----------
APPAREL & ACCESSORY STORES - 2.28%
8,693 ASHWORTH INCORPORATED+ 75,629
29,112 BURLINGTON COAT FACTORY WAREHOUSE CORPORATION 576,418
13,390 CATO CORPORATION 268,871
17,448 CHILDRENS PLACE+ 540,365
24,689 CHRISTOPHER & BANKS CORPORATION 521,185
19,144 DRESS BARN INCORPORATED+ 335,786
21,432 GOODY'S FAMILY CLOTHING INCORPORATED 305,835
19,538 GYMBOREE CORPORATION+ 327,652
31,249 HOT TOPIC INCORPORATED+ 826,536
7,738 OSHKOSH B'GOSH INCORPORATED CLASS A 181,069
51,120 PACIFIC SUNWEAR OF CALIFORNIA INCORPORATED+ 1,254,485
22,434 TOO INCORPORATED+ 469,992
25,890 URBAN OUTFITTERS INCORPORATED+ 1,244,273
19,616 WET SEAL INCORPORATED CLASS A+ 161,832
7,089,928
----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.75%
4,422 HAGGAR CORPORATION 88,440
17,457 KELLWOOD COMPANY 685,187
19,918 PHILLIPS-VAN HEUSEN CORPORATION 368,483
36,368 QUIKSILVER INCORPORATED+ 794,641
21,216 RUSSELL CORPORATION 387,404
2,324,155
----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.22%
23,674 CENTRAL PARKING CORPORATION 475,374
9,938 MIDAS INCORPORATED+ 193,294
668,668
----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 1.99%
21,231 MDC HOLDINGS INCORPORATED 1,494,634
4,255 NVR INCORPORATED+ 1,957,300
16,148 RYLAND GROUP INCORPORATED 1,434,427
21,440 STANDARD-PACIFIC CORPORATION 1,286,400
6,172,761
----------
199
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES - 7.33%
21,394 AARON RENTS INCORPORATED $ 532,497
31,697 ABM INDUSTRIES INCORPORATED 568,961
17,336 ADMINISTAFF INCORPORATED+ 302,166
19,705 ADVO INCORPORATED 634,895
27,692 AMERICAN MANAGEMENT SYSTEMS INCORPORATED+ 531,686
9,940 ANSYS INCORPORATED+ 395,016
20,143 ARBITRON INCORPORATED+ 810,957
12,309 BARRA INCORPORATED 430,692
15,338 BRADY CORPORATION CLASS A 584,071
8,132 BROOKTROUT INCORPORATED+ 161,339
19,020 CACI INTERNATIONAL INCORPORATED CLASS A+ 817,860
21,001 CAPTARIS INCORPORATED+ 115,505
15,592 CARREKER CORPORATION+ 123,489
23,138 CERNER CORPORATION+ 1,045,606
42,562 CIBER INCORPORATED+ 468,182
28,601 COGNEX CORPORATION 950,983
26,536 DENDRITE INTERNATIONAL INCORPORATED+ 424,576
30,759 EFUNDS CORPORATION+ 504,448
22,103 FACTSET RESEARCH SYSTEMS INCORPORATED 940,704
24,530 FILENET CORPORATION+ 653,724
14,501 GERBER SCIENTIFIC INCORPORATED+ 98,607
11,954 HEIDRICK & STRUGGLES INTERNATIONAL INCORPORATED+ 286,059
24,907 HYPERION SOLUTIONS CORPORATION+ 1,032,395
7,522 INSURANCE AUTO AUCTIONS INCORPORATED+ 109,295
11,119 INTRADO INCORPORATED+ 215,153
18,937 JDA SOFTWARE GROUP INCORPORATED+ 275,533
20,188 KRONOS INCORPORATED+ 656,716
26,897 LABOR READY INCORPORATED+ 363,647
19,562 MANHATTAN ASSOCIATES INCORPORATED+ 543,824
12,701 MAPINFO CORPORATION+ 162,065
6,750 MEMBERWORKS INCORPORATED+ 235,710
36,518 MIDWAY GAMES INCORPORATED+ 265,851
16,188 MRO SOFTWARE INCORPORATED+ 188,105
18,145 NCO GROUP INCORPORATED+ 424,049
23,319 NDCHEALTH CORPORATION 633,111
24,564 NETEGRITY INCORPORATED+ 208,794
15,663 NETWORK EQUIPMENT TECHNOLOGY INCORPORATED+ 156,317
16,453 ON ASSIGNMENT INCORPORATED+ 91,972
13,414 PC-TEL INCORPORATED+ 138,567
15,960 PHOENIX TECHNOLOGIES LIMITED+ 86,024
23,016 PROGRESS SOFTWARE CORPORATION+ 552,154
10,392 QRS CORPORATION+ 58,611
16,812 RADIANT SYSTEMS INCORPORATED+ 101,079
11,834 RADISYS CORPORATION+ 247,331
21,903 ROXIO INCORPORATED+ 97,906
25,640 SERENA SOFTWARE INCORPORATED+ 521,774
10,511 SOURCECORP INCORPORATED+ 278,541
200
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
39,293 SPHERION CORPORATION+ $ 401,967
11,356 SPSS INCORPORATED+ 207,815
9,334 STARTEK INCORPORATED 339,198
29,116 TAKE-TWO INTERACTIVE SOFTWARE INCORPORATED+ 1,070,886
8,909 TALX CORPORATION 195,553
24,858 THQ INCORPORATED+ 502,877
24,717 VERITY INCORPORATED+ 337,881
9,940 VOLT INFORMATION SCIENCE INCORPORATED+ 242,934
14,614 WEBSENSE INCORPORATED+ 432,720
22,758,378
-----------
CHEMICALS & ALLIED PRODUCTS - 4.23%
33,911 ALPHARMA INCORPORATED CLASS A 664,995
14,703 ARCH CHEMICALS INCORPORATED 415,066
18,340 ARQULE INCORPORATED+ 108,940
16,846 CAMBREX CORPORATION 453,157
9,485 CIMA LABS INCORPORATED+ 298,113
18,826 DIAGNOSTIC PRODUCTS CORPORATION 815,166
21,400 GEORGIA GULF CORPORATION 645,210
18,611 HB FULLER COMPANY 529,297
22,666 IDEXX LABORATORIES INCORPORATED+ 1,289,015
12,855 IMMUCOR INCORPORATED+ 232,933
19,779 MACDERMID INCORPORATED 696,023
36,325 MEDICIS PHARMACEUTICAL CORPORATION CLASS A 1,453,000
22,886 MGI PHARMA INCORPORATED+ 1,401,996
9,105 NATURES SUNSHINE PRODUCTS INCORPORATED 135,118
43,579 NBTY INCORPORATED+ 1,620,267
14,710 NOVEN PHARMACEUTICALS INCORPORATED+ 315,824
18,519 OM GROUP INCORPORATED+ 562,978
26,132 OMNOVA SOLUTIONS INCORPORATED+ 137,193
17,054 PAREXEL INTERNATIONAL CORPORATION+ 304,755
5,706 PENFORD CORPORATION 95,062
59,925 POLYONE CORPORATION+ 398,501
6,255 QUAKER CHEMICAL CORPORATION 158,877
11,412 SURMODICS INCORPORATED+ 227,213
20,828 WELLMAN INCORPORATED 173,914
13,132,613
-----------
COAL MINING - 0.35%
49,211 MASSEY ENERGY COMPANY 1,086,087
-----------
COMMUNICATIONS - 1.20%
23,669 ANIXTER INTERNATIONAL INCORPORATED+ 668,649
15,023 AUDIOVOX CORPORATION CLASS A+ 300,460
12,096 BOSTON COMMUNICATIONS GROUP INCORPORATED+ 143,338
36,794 GENERAL COMMUNICATION INCORPORATED CLASS A+ 334,825
24,615 GLOBAL PAYMENTS INCORPORATED 1,109,644
201
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMUNICATIONS (continued)
15,064 J2 GLOBAL COMMUNICATIONS INCORPORATED+ $ 339,844
27,912 WEBEX COMMUNICATIONS INCORPORATED+ 829,824
3,726,584
-----------
COMPUTERS-INTERGRATED SYSTEMS - 0.08%
20,976 AGILYSYS INCORPORATED 249,614
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.20%
9,820 EMCOR GROUP INCORPORATED+ 360,394
17,280 INSITUFORM TECHNOLOGIES INCORPORATED CLASS A+ 270,086
630,480
-----------
DEPOSITORY INSTITUTIONS - 7.82%
14,978 ANCHOR BANCORP WISCONSIN INCORPORATED 382,688
19,530 BANKUNITED FINANCIAL CORPORATION CLASS A+ 580,041
15,893 BOSTON PRIVATE FINANCIAL HOLDINGS INCORPORATED 445,004
38,417 BROOKLINE BANCORP INCORPORATED 612,751
23,984 CHITTENDEN CORPORATION 791,472
27,539 COMMERCIAL FEDERAL CORPORATION 760,076
25,085 DIME COMMUNITY BANCSHARES 510,480
18,241 DOWNEY FINANCIAL CORPORATION 964,949
15,864 EAST WEST BANCORP INCORPORATED 888,384
26,132 FIRST BANCORP PUERTO RICO 1,087,091
30,421 FIRST MIDWEST BANCORP INCORPORATED 1,038,573
9,497 FIRST REPUBLIC BANK 366,204
11,111 FIRSTFED FINANCIAL CORPORATION+ 512,550
39,485 FLAGSTAR BANCORP INCORPORATED 1,012,790
25,763 GOLD BANC CORP INCORPORATED 419,937
29,264 HUDSON UNITED BANCORP 1,113,495
18,322 IRWIN FINANCIAL CORPORATION 494,328
21,548 MAF BANCORP INCORPORATED 936,476
16,019 PROVIDENT BANKSHARES CORPORATION 502,676
41,492 REPUBLIC BANCORP INCORPORATED 583,378
18,694 RIGGS NATIONAL CORPORATION 321,724
16,811 SEACOAST FINANCIAL SERVICES CORPORATION 563,169
38,535 SOUTH FINANCIAL GROUP INCORPORATED 1,140,251
22,392 SOUTHWEST BANCORPORATION OF TEXAS INCORPORATED 844,850
38,381 STATEN ISLAND BANCORP INCORPORATED 954,919
29,000 STERLING BANCSHARES INCORPORATED TEXAS 388,310
26,014 SUSQUEHANNA BANCSHARES INCORPORATED 666,739
48,629 TRUSTCO BANK CORPORATION NY 654,546
29,412 UCBH HOLDINGS INCORPORATED 1,177,657
18,544 UMPQUA HOLDINGS CORPORATION 374,403
28,723 UNITED BANKSHARES INCORPORATED 876,052
21,988 WAYPOINT FINANCIAL CORPORATION 589,718
26,379 WHITNEY HOLDING CORPORATION 1,101,059
12,871 WINTRUST FINANCIAL CORPORATION 625,917
24,282,657
-----------
202
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DURABLE GOODS - CONSUMER - 0.08%
17,576 STURM RUGER & COMPANY INCORPORATED $ 237,452
-----------
EATING & DRINKING PLACES - 2.29%
25,287 CEC ENTERTAINMENT INCORPORATED+ 877,459
13,923 IHOP CORPORATION 479,508
23,699 JACK IN THE BOX INCORPORATED+ 591,764
17,989 LANDRY'S RESTAURANTS INCORPORATED 536,612
13,805 LONE STAR STEAKHOUSE & SALOON INCORPORATED 402,968
13,822 O'CHARLEY'S INCORPORATED+ 252,251
16,632 P.F. CHANG'S CHINA BISTRO INCORPORATED+ 836,756
11,744 PAPA JOHNS INTERNATIONAL INCORPORATED+ 397,417
21,985 RARE HOSPITALITY INTERNATIONAL INCORPORATED+ 610,084
27,614 RYAN'S FAMILY STEAK HOUSES INCORPORATED+ 472,476
25,737 SONIC CORPORATION+ 882,264
17,882 STEAK N SHAKE COMPANY+ 344,229
38,696 TRIARC COMPANIES INCORPORATED CLASS B 424,108
7,107,896
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.76%
9,929 AMERICAN STATES WATER COMPANY 242,268
33,864 ATMOS ENERGY CORPORATION 865,903
31,556 AVISTA CORPORATION 597,040
7,308 CASCADE NATURAL GAS CORPORATION 159,241
7,801 CENTRAL VERMONT PUBLIC SERVICE 175,523
10,294 CH ENERGY GROUP INCORPORATED 505,332
30,868 CLECO CORPORATION 587,418
31,454 EL PASO ELECTRIC COMPANY+ 435,323
23,607 ENERGEN CORPORATION 973,789
3,265 GREEN MOUNTAIN POWER CORPORATION 84,466
12,507 LACLEDE GROUP INCORPORATED 378,962
17,929 NEW JERSEY RESOURCES 677,716
16,889 NORTHWEST NATURAL GAS COMPANY 527,781
10,464 NUI CORPORATION 176,946
24,852 PIEDMONT NATURAL GAS COMPANY 1,049,251
47,736 SOUTHERN UNION COMPANY+ 904,597
22,230 SOUTHWEST GAS CORPORATION 520,182
32,922 UGI CORPORATION 1,083,792
9,447 UIL HOLDINGS CORPORATION 455,062
21,994 UNISOURCE ENERGY CORPORATION 540,393
18,600 WASTE CONNECTIONS INCORPORATED+ 740,280
11,681,265
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 7.46%
16,561 ACTEL CORPORATION+ 374,775
27,402 ACUITY BRANDS INCORPORATED 654,360
71,252 ADAPTEC INCORPORATED+ 624,168
21,285 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 434,001
48,433 AEROFLEX INCORPORATED+ 651,908
203
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
22,973 ALLIANCE SEMICONDUCTOR CORPORATION+ $ 174,825
19,126 AO SMITH CORPORATION 553,698
15,451 APPLICA INCORPORATED+ 173,669
25,297 ARTESYN TECHNOLOGIES INCORPORATED+ 240,827
20,225 ATMI INCORPORATED+ 532,322
21,415 BALDOR ELECTRIC COMPANY 492,117
7,276 BEL FUSE INCORPORATED CLASS B 238,216
26,562 BENCHMARK ELECTRONICS INCORPORATED+ 836,172
16,657 C&D TECHNOLOGIES INCORPORATED 278,338
27,612 C-COR.NET CORPORATION+ 387,120
27,422 CABLE DESIGN TECHNOLOGIES+ 259,961
8,436 CATAPULT COMMUNICATIONS CORPORATION+ 150,405
21,481 CHECKPOINT SYSTEMS INCORPORATED+ 405,991
11,739 CONCORD COMMUNICATIONS INCORPORATED+ 169,159
23,560 CTS CORPORATION 307,222
17,452 CUBIC CORPORATION 453,752
23,558 CYMER INCORPORATED+ 909,574
13,905 DIONEX CORPORATION+ 734,184
18,723 DSP GROUP INCORPORATED+ 481,743
11,884 DUPONT PHOTOMASKS INCORPORATED+ 276,422
18,259 ELECTRO SCIENTIFIC INDUSTRIES INCORPORATED+ 429,817
25,385 ESS TECHNOLOGY INCORPORATED+ 372,144
26,707 EXAR CORPORATION+ 494,079
45,608 HARMONIC INCORPORATED+ 440,117
17,049 HELIX TECHNOLOGY CORPORATION 413,438
17,003 HUTCHINSON TECHNOLOGY INCORPORATED+ 477,104
16,452 INTER-TEL INCORPORATED 494,547
18,596 MAGNETEK INCORPORATED+ 140,586
13,834 MERCURY COMPUTER SYSTEMS INCORPORATED+ 352,767
23,364 METHODE ELECTRONICS 301,396
38,621 MICORSEMI CORPORATION+ 528,335
16,979 MOOG INCORPORATED CLASS A+ 579,323
4,452 NATIONAL PRESTO INDUSTRIES INCORPORATED 172,560
12,921 PARK ELECTROCHEMICAL CORPORATION 326,901
16,471 PERICOM SEMICONDUCTOR+ 189,087
21,218 PHOTRONICS INCORPORATED+ 376,407
19,685 POWER INTEGRATIONS INCORPORATED+ 577,361
16,349 REGAL-BELOIT CORPORATION 326,653
10,568 ROGERS CORPORATION+ 564,014
7,326 SALTON INCORPORATED+ 68,645
9,884 SBS TECHNOLOGIES INCORPORATED+ 152,807
97,372 SKYWORKS SOLUTIONS INCORPORATED+ 1,135,358
11,750 STANDARD MICROSYSTEMS CORPORATION+ 313,020
8,385 SUPERTEX INCORPORATED+ 139,862
28,931 SYMMETRICOM INCORPORATED+ 259,511
26,307 TECHNITROL INCORPORATED+ 494,572
13,925 THREE-FIVE SYSTEMS INCORPORATED+ 91,209
8,872 TOLLGRADE COMMUNICATIONS INCORPORATED+ 141,597
204
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
23,537 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ $ 988,554
17,216 VIASAT INCORPORATED+ 428,334
27,343 VICOR CORPORATION+ 335,499
18,252 ZIX CORPORATION+ 266,114
23,166,647
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES
- 2.15%
20,902 AMERICAN HEALTHCORP+ 510,427
12,772 CDI CORPORATION 412,280
27,295 KROLL INCORPORATED+ 732,871
14,296 MAXMUS INCORPORATED+ 500,360
36,691 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED+ 1,093,025
40,223 PRG-SCHULTZ INTERNATIONAL INCORPORATED+ 176,981
36,120 REGENERON PHARMACEUTICAL INCORPORATED+ 490,510
35,688 TETRA TECH INCORPORATED+ 765,864
21,953 URS CORPORATION+ 631,807
54,981 US ONCOLOGY INCORPORATED+ 812,619
21,487 WATSON WYATT & COMPANY HOLDINGS+ 542,332
6,669,076
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 1.88%
25,282 ALLIANT TECHSYSTEMS INCORPORATED+ 1,375,341
23,805 APTARGROUP INCORPORATED 914,112
4,133 BUTLER MANUFACTURING COMPANY+ 92,786
18,611 COMMERCIAL METALS COMPANY 592,574
19,800 ESCROW MASOTECH INCORPORATED+ 0
19,317 GRIFFON CORPORATION+ 417,247
9,316 MATERIAL SCIENCES CORPORATION+ 102,476
9,371 MOBILE MINI INCORPORATED+ 162,118
39,704 SHAW GROUP INCORPORATED+ 430,391
15,851 SIMPSON MANUFACTURING COMPANY INCORPORATED 775,906
36,775 TOWER AUTOMOTIVE INCORPORATED 185,346
15,525 VALMONT INDUSTRIES INCORPORATED 310,190
20,681 WATTS WATER TECHNOLOGIES INCORPORATED 483,729
5,842,216
-----------
FINANCE COMPANIES - 0.05%
15,784 REWARDS NETWORK INCORPORATED+ 157,840
-----------
FOOD & KINDRED PRODUCTS - 1.07%
11,751 AMERICAN ITALIAN PASTA COMPANY CLASS A 469,217
23,578 CORN PRODUCTS INTERNATIONAL INCORPORATED 943,120
29,503 FLOWERS FOODS INCORPORATED 774,159
5,748 J & J SNACK FOODS CORPORATION+ 259,695
19,043 LANCE INCORPORATED 312,115
18,996 RALCORP HOLDINGS INCORPORATED+ 578,048
3,336,354
-----------
205
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD STORES - 0.31%
25,157 GREAT ATLANTIC & PACIFIC TEA COMPANY INCORPORATED+ $ 194,715
19,668 PANERA BREAD COMPANY+ 765,479
960,194
----------
FURNITURE & FIXTURES - 0.81%
7,604 BASSETT FURNITURE INDUSTRIES INCORPORATED 150,787
24,353 ETHAN ALLEN INTERIORS INCORPORATED 1,004,805
34,344 LA-Z-BOY INCORPORATED 747,325
21,974 SELECT COMFORT CORPORATION+ 606,263
2,509,180
----------
GENERAL MERCHANDISE STORES - 0.59%
32,569 CASEY'S GENERAL STORES 540,645
25,532 FRED'S INCORPORATED 619,662
19,082 SHOPKO STORES INCORPORATED+ 278,979
27,255 STEIN MART INCORPORATED+ 376,119
1,815,405
---------
HEALTH SERVICES - 2.88%
31,465 ACCREDO HEALTH INCORPORATED+ 1,198,816
19,646 AMSURG CORPORATION+ 446,149
20,849 CROSS COUNTRY HEALTHCARE INCORPORATED+ 347,136
15,170 CRYOLIFE INCORPORATED+ 90,262
8,379 CURATIVE HEALTH SERVICES INCORPORATED+ 112,279
19,617 ENZO BIOCHEM INCORPORATED+ 330,154
42,317 HOOPER HOLMES INCORPORATED 264,058
21,293 NAUTILUS GROUP INCORPORATED 335,365
23,702 ODYSSEY HEALTHCARE INCORPORATED+ 446,783
32,745 ORTHODONTIC CENTERS OF AMERICA INCORPORATED+ 258,686
15,361 PEDIATRIX MEDICAL GROUP INCORPORATED+ 967,743
31,827 PROVINCE HEALTHCARE COMPANY+ 506,049
10,528 REHABCARE GROUP INCORPORATED+ 209,297
29,674 RENAL CARE GROUP INCORPORATED+ 1,357,882
6,454 ROTO-ROOTER INCORPORATED 326,250
18,071 SIERRA HEALTH SERVICES INCORPORATED+ 657,784
13,218 SUNRISE SENIOR LIVING INCORPORATED+ 473,865
17,910 UNITED SURGICAL PARTNERS INTERNATIONAL INCORPORATED+ 607,865
8,936,423
----------
HOLDING & OTHER INVESTMENT OFFICES - 2.46%
8,764 4KIDS ENTERTAINMENT INCORPORATED+ 196,051
22,981 CAPITAL AUTOMOTIVE 811,459
17,109 COLONIAL PROPERTIES TRUST 698,047
32,658 COMMERCIAL NET LEASE REALTY INCORPORATED 644,996
24,513 COMMUNITY FIRST BANKSHARES INCORPORATED 787,848
14,884 ESSEX PROPERTY TRUST INCORPORATED 974,902
18,609 GABLES RESIDENTIAL TRUST 674,576
20,424 GLENBOROUGH REALTY TRUST INCORPORATED 456,476
206
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HOLDING & OTHER INVESTMENT OFFICES (continued)
21,685 HEADWATERS INCORPORATED+ $ 555,570
18,320 KILROY REALTY CORPORATION 650,360
29,808 SHURGARD STORAGE CENTERS INCORPORATED 1,189,339
7,639,624
----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.16%
17,348 BELL MICROPRODUCTS INCORPORATED+ 124,906
14,247 COST PLUS INCORPORATED+ 594,812
16,218 ELECTRONICS BOUTIQUE HOLDINGS CORPORATION+ 476,160
15,553 GUITAR CENTER INCORPORATED+ 577,638
14,488 HAVERTY FURNITURE COMPANIES INCORPORATED 308,305
29,238 LINENS `N THINGS INCORPORATED+ 1,035,318
21,334 MOVIE GALLERY INCORPORATED 417,933
9,630 ULTIMATE ELECTRONICS INCORPORATED+ 62,884
3,597,956
----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.39%
22,383 AZTAR CORPORATION+ 548,607
19,402 MARCUS CORPORATION 336,625
29,212 PRIME HOSPITALITY CORPORATION+ 332,433
1,217,665
----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.59%
12,888 ASTEC INDUSTRIES INCORPORATED+ 207,626
64,624 AXCELIS TECHNOLOGIES INCORPORATED+ 718,619
11,770 BLACK BOX CORPORATION 630,754
14,589 BRIGGS & STRATTON CORPORATION 984,320
29,028 BROOKS AUTOMATION INCORPORATED+ 609,008
11,294 DRIL-QUIP INCORPORATED+ 185,673
16,892 ENGINEERED SUPPORT SYSTEMS INCORPORATED 824,161
19,866 FEDDERS CORPORATION 113,435
12,474 GARDNER DENVER INCORPORATED+ 337,796
14,325 GLOBAL IMAGING SYSTEMS INCORPORATED+ 475,877
14,896 HYDRIL COMPANY+ 390,275
21,491 IDEX CORPORATION 934,429
18,430 KAYDON CORPORATION 507,378
33,081 KULICKE & SOFFA INDUSTRIES INCORPORATED+ 387,709
38,418 LENNOX INTERNATIONAL INCORPORATED 712,654
7,678 LINDSAY MANUFACTURING COMPANY 184,886
17,354 MANITOWOC COMPANY INCORPORATED 513,331
11,996 MICROS SYSTEMS INCORPORATED+ 541,619
22,742 MILACRON INCORPORATED+ 78,915
20,758 NYFIX INCORPORATED+ 107,111
25,551 PAXAR CORPORATION+ 376,877
9,527 PLANAR SYSTEMS INCORPORATED+ 135,569
9,437 ROBBINS & MYERS INCORPORATED 203,367
9,976 SCM MICROSYSTEMS INCORPORATED+ 66,939
11,274 THOMAS INDUSTRIES INCORPORATED 355,131
207
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
58,363 TIMKEN COMPANY $ 1,355,773
15,929 TORO COMPANY 987,598
15,314 ULTRATECH INCORPORATED+ 356,969
17,015 WATSCO INCORPORATED 493,435
7,280 WOODWARD GOVERNOR COMPANY 464,027
14,241,261
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.29%
23,481 HILB, ROGAL & HAMILTON COMPANY 894,626
-----------
INSURANCE CARRIERS - 2.62%
15,899 AMERIGROUP CORPORATION+ 726,584
13,171 CENTENE CORPORATION+ 402,901
20,210 DELPHI FINANCIAL GROUP INCORPORATED CLASS A 849,224
49,597 FREMONT GENERAL CORPORATION 1,517,668
12,163 LANDAMERICA FINANACIAL GROUP INCORPORATED 550,497
14,358 PHILADELPHIA CONSOLIDATED HOLDING CORPORATION+ 832,764
19,159 PRESIDENTIAL LIFE CORPORATION 287,002
16,444 RLI CORPORATION 634,738
6,443 SCPIE HOLDINGS INCORPORATED 52,833
17,832 SELECTIVE INSURANCE GROUP INCORPORATED 625,368
30,387 STEWART INFORMATION SERVICES CORPORATION 732,990
30,249 UNITIED INSURANCE COMPANIES INCORPORATED+ 446,475
12,289 ZENITH NATIONAL INSURANCE CORPORATION 481,729
8,140,773
-----------
LEATHER & LEATHER PRODUCTS - 0.43%
11,752 BROWN SHOE COMPANY INCORPORATED 428,125
14,181 GENESCO INCORPORATED+ 328,716
23,153 K-SWISS INCORPORATED 566,554
1,323,395
-----------
LEGAL SERVICES - 0.09%
11,309 PRE-PAID LEGAL SERVICES INCORPORATED+ 276,844
-----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.48%
45,462 CHAMPION ENTERPRISES INCORPORATED+ 481,897
10,146 COACHMEN INDUSTRIES INCORPORATED 169,235
7,816 DELTIC TIMBER CORPORATION 277,312
5,480 SKYLINE CORPORATION 211,364
11,618 UNIVERSAL FOREST PRODUCTS 358,531
1,498,339
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 8.75%
19,205 ADVANCED MEDICAL OPTICS INCORPORATED+ 468,602
21,599 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ 572,373
8,828 ANALOGIC CORPORATION 401,586
18,402 ARMOR HOLDINGS INCORPORATED+ 609,106
208
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (continued)
13,527 ARTHROCARE CORPORATION+ $ 312,609
9,626 BEI TECHNOLOGIES INCORPORATED 216,200
10,167 BIOSITE INCORPORATED+ 325,039
19,643 COHERENT INCORPORATED+ 516,414
13,995 COHU INCORPORATED 261,007
18,580 CONCORD CAMERA CORPORATION+ 116,682
18,973 CONMED CORPORATION+ 560,462
20,954 COOPER COMPANIES INCORPORATED 1,131,516
11,050 CUNO INCORPORATED+ 495,924
9,658 DATASCOPE CORPORATION 339,382
17,606 DRS TECHNOLOGIES INCORPORATED+ 492,616
12,892 EDO CORPORATION 310,439
13,757 ESTERLINE TECHNOLOGIES CORPORATION+ 341,861
21,643 FEI COMPANY+ 472,900
21,637 FLIR SYSTEMS INCORPORATED+ 824,802
30,396 FOSSIL INCORPORATED+ 1,013,707
16,260 HAEMONETICS CORPORATION MASSACHUSETTS+ 511,377
13,183 HOLOGIC INCORPORATED+ 266,956
8,915 ICU MEDICAL INCORPORATED+ 270,749
22,887 INAMED CORPORATION+ 1,219,419
33,470 INPUT OUTPUT INCORPORATED+ 259,392
17,732 INTEGRA LIFESCIENCES HOLDINGS+ 542,954
10,919 INTERMAGNETICS GENERAL CORPORATION+ 289,353
20,269 INVACARE CORPORATION 914,943
11,050 INVISION TECHNOLOGIES INCORPORATED+ 548,854
14,744 IONICS INCORPORATED+ 418,730
13,424 ITRON INCORPORATED+ 249,821
10,420 KEITHLEY INSTRUMENTS INCORPORATED 215,798
45,757 KOPIN CORPORATION+ 264,475
13,053 MEADE INSTRUMENTS CORPORATION+ 52,734
28,593 MENTOR CORPORATION 860,649
16,817 MERIT MEDICAL SYSTEMS INCORPORATED+ 363,920
11,169 OSTEOTECH INCORPORATED+ 72,040
10,784 PHOTON DYNAMICS INCORPORATED+ 351,882
44,369 PINNACLE SYSTEMS INCORPORATED+ 400,652
17,152 POLYMEDICA CORPORATION 460,017
11,608 POSSIS MEDICAL INCORPORATED+ 326,533
21,950 RESMED INCORPORATED+ 991,921
22,458 RESPIRONICS INCORPORATED+ 1,213,181
23,523 ROPER INDUSTRIES INCORPORATED 1,134,985
10,742 RUDOLPH TECHNOLOGIES INCORPORATED+ 201,198
20,877 SOLA INTERNATIONAL INCORPORATED+ 485,390
25,089 SYBRON DENTAL SPECIALTIES INCORPORATED+ 683,675
26,830 TECHNE CORPORATION+ 1,094,932
21,195 TELEDYNE TECHNOLOGIES INCORPORATED+ 396,347
19,553 THERAGENICS CORPORATION+ 105,195
32,380 TRIMBLE NAVIGATION LIMITED+ 742,473
19,131 VEECO INSTRUMENTS INCORPORATED+ 536,625
209
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (continued)
19,746 VIASYS HEALTHCARE INCORPORATED+ $ 446,655
8,442 VITAL SIGNS INCORPORATED 284,749
13,420 X-RITE INCORPORATED 199,824
27,161,625
-----------
MEDICAL EQUIPMENT & SUPPLIES - 0.16%
13,832 WILSON GREATBATCH TECHNOLOGIES INCORPORATED+ 501,825
-----------
MEMBERSHIP ORGANIZATIONS - 0.13%
14,241 JO ANN STORES INCORPORATED+ 399,460
-----------
METAL MINING - 0.14%
6,858 CLEVELAND CLIFFS INCORPORATED+ 448,719
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.38%
28,152 FLORIDA ROCK INDUSTRIES INCORPORATED 1,186,607
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.72%
9,808 AT CROSS COMPANY CLASS A+ 63,948
12,283 DAKTRONICS INCORPORATED+ 277,227
16,373 JAKKS PACIFIC INCORPORATED+ 245,595
21,675 K2 INCORPORATED+ 347,450
10,614 LYDALL INCORPORATED+ 108,263
13,488 RUSS BERRIE AND COMPANY INCORPORATED 472,080
10,761 SHUFFLE MASTER INCORPORATED+ 500,279
7,984 STANDEX INTERNATIONAL CORPORATION 215,568
2,230,410
-----------
MISCELLANEOUS RETAIL - 0.77%
11,967 ACTION PERFORMANCE COMPANIES INCORPORATED 182,736
18,468 CASH AMERICA INTERNATIONAL INCORPORATED 425,687
15,943 DUANE READE INCORPORATED+ 270,075
12,273 HANCOCK FABRICS INCORPORATED DELEWARE 195,018
13,002 J JILL GROUP INCORPORATED+ 266,801
16,991 ZALE CORPORATION+ 1,045,796
2,386,113
-----------
MOTION PICTURES - 0.30%
20,068 AVID TECHNOLOGY INCORPORATED+ 925,737
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.32%
16,303 ARKANSAS BEST CORPORATION 436,757
14,002 FORWARD AIR CORPORATION+ 460,246
32,657 HEARTLAND EXPRESS INCORPORATED 743,926
19,387 LANDSTAR SYSTEM INCORPORATED+ 793,704
17,912 USF CORPORATION 612,949
31,089 YELLOW ROADWAY CORPORATION+ 1,046,767
4,094,349
-----------
210
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.49%
12,177 FINANCIAL FEDERAL CORPORATION+ $ 407,077
23,003 NEW CENTURY FINANCIAL CORPORATION 1,117,026
1,524,103
-----------
NON-DURABLE GOODS - CONSUMER - 0.09%
25,694 STRIDE RITE CORPORATION 272,613
-----------
OIL & GAS EXTRACTION - 4.38%
9,047 ATWOOD OCEANICS INCORPORATED+ 321,983
21,222 CABOT OIL AND GAS CORPORATION 648,544
24,645 CAL DIVE INTERNATIONAL INCORPORATED+ 636,580
27,195 CIMAREX ENERGY COMPANY+ 785,936
28,098 EVERGREEN RESOURCES INCORPORATED+ 965,166
12,748 NUEVO ENERGY COMPANY+ 415,075
15,872 OCEANEERING INTERNATIONAL INCORPORATED+ 483,302
44,571 PATINA OIL & GAS CORPORATION 1,169,989
15,414 PLAINS RESOURCES INCORPORATED+ 280,227
8,432 PRIMA ENERGY CORPORATION+ 291,326
17,558 REMINGTON OIL & GAS CORPORATION+ 346,771
12,207 SEACOR SMIT INCORPORATED+ 501,464
23,485 SOUTHWESTERN ENERGY COMPANY+ 566,458
21,732 SPINNAKER EXPLORATION COMPANY+ 780,613
18,510 ST MARY LAND & EXPLORATION COMPANY 618,789
17,237 STONE ENERGY CORPORATION+ 852,542
17,924 SWIFT ENERGY COMPANY+ 337,867
14,306 TETRA TECH INCORPORATED+ 373,816
29,780 TOM BROWN INCORPORATED+ 1,119,728
28,460 UNIT CORPORATION+ 780,373
22,028 VERITAS DGC INCORPORATED+ 455,980
41,976 VINTAGE PETROLEUM INCORPORATED 615,368
17,822 W-H ENERGY SERVICES INCORPORATED+ 257,884
13,605,781
-----------
PAPER & ALLIED PRODUCTS - 0.76%
24,209 BUCKEYE TECHNOLOGIES INCORPORATED 250,805
18,384 CARAUSTAR INDUSTRIES INCORPORATED+ 214,174
12,469 CHESAPEAKE CORPORATION 297,635
10,216 POPE & TALBOT INCORPORATED 175,613
22,934 ROCK-TENN COMPANY CLASS A 330,708
9,646 SCHWEITZER MANDUIT INTERNATIONAL INCORPORATED 311,566
18,592 STANDARD REGISTER COMPANY 298,030
33,672 WAUSAU-MOSINEE PAPER CORPORATION 474,438
2,352,969
-----------
PERSONAL SERVICES - 0.31%
5,777 ANGELICA CORPORATION 131,889
13,865 COINSTAR INCORPORATED+ 220,037
211
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PERSONAL SERVICES (continued)
5,263 CPI CORPORATION $ 100,155
13,617 G & K SERVICES INCORPORATED CLASS A 506,825
958,906
----------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.34%
12,823 ELKCORP 347,375
17,088 FRONTIER OIL CORPORATION 331,166
11,102 WD-40 COMPANY 388,570
1,067,111
----------
PHARMACEUTICALS - 0.05%
38,891 SAVIENT PHARMACEUTICALS INCORPORATED+ 147,008
----------
PRIMARY METAL INDUSTRIES - 2.09%
16,840 BELDEN INCORPORATED 319,455
10,915 BRUSH ENGINEERED MATERIALS INCORPORATED+ 221,247
14,661 CARPENTER TECHNOLOGY CORPORATION 482,054
13,847 CENTURY ALUMINUM COMPANY+ 390,901
10,457 COMMONWEALTH INDUSTRIES+ 76,441
13,527 CURTISS-WRIGHT CORPORATION 634,011
10,058 IMCO RECYCLING INCORPORATED+ 94,746
18,702 LONE STAR TECHNOLOGIES INCORPORATED+ 330,464
27,404 MAVERICK TUBE CORPORATION+ 645,364
22,806 MUELLER INDUSTRIES INCORPORATED 775,176
10,596 QUANEX CORPORATION 450,224
13,610 RTI INTERNATIONAL METALS INCORPORATED+ 215,446
31,420 STEEL DYNAMICS INCORPORATED+ 778,588
8,037 STEEL TECHNOLOGIES INCORPORATED 155,275
13,783 TEXAS INDUSTRIES INCORPORATED 498,255
24,986 TREDEGAR CORPORATION 365,545
8,019 WOLVERINE TUBE INCORPORATED+ 67,279
6,500,471
----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.68%
22,146 BOWNE & COMPANY INCORPORATED 378,697
8,812 CONSOLIDATED GRAPHICS INCORPORATED+ 338,821
13,634 INFORMATION HOLDINGS INCORPORATED+ 281,133
18,096 JOHN H HARLAND COMPANY 563,148
8,685 NEW ENGLAND BUSINESS SERVICE INCORPORATED 293,987
9,429 THOMAS NELSON INCORPORATED 256,657
2,112,443
----------
RAILROAD TRANSPORTATION - 0.18%
40,543 KANSAS CITY SOUTHERN+ 563,548
----------
REAL ESTATE - 0.21%
8,568 MERITAGE CORPORATION+ 636,174
----------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.22%
30,823 LEXINGTON CORPORATE PROPERTIES TRUST 671,633
----------
212
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.12%
19,650 A SCHULMAN INCORPORATED $ 386,123
----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.43%
30,521 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 466,971
12,586 PIPER JAFFRAY COMPANIES INCORPORATED+ 681,532
11,198 SWS GROUP INCORPORATED 200,556
1,349,059
----------
SOFTWARE - 0.06%
11,610 EPIQ SYSTEMS INCORPORATED+ 190,172
----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.36%
17,978 APOGEE ENTERPRISES INCORPORATED 221,669
10,371 CARBO CERAMICS INCORPORATED 652,854
8,878 LIBBEY INCORPORATED 230,207
1,104,730
----------
TELEPHONE SERVICES - 0.21%
15,653 COMMONWEALTH TELEPHONE ENTERPRISES INCORPORATED+ 641,930
----------
TEXTILE MILL PRODUCTS - 0.63%
21,749 ALBANY INTERNATIONAL CORPORATION CLASS A 584,831
33,537 INTERFACE INCORPORATED+ 266,619
10,575 OXFORD INDUSTRIES INCORPORATED 488,459
25,739 WOLVERINE WORLD WIDE INCORPORATED 621,082
1,960,991
----------
TRANSPORTATION BY AIR - 0.73%
29,608 ATLANTIC COAST AIRLINES+ 215,250
30,924 EGL INCORPORATED+ 555,395
23,204 FRONTIER AIRLINES INCORPORATED+ 241,786
20,734 MESA AIR GROUP INCORPORATED+ 171,263
14,751 OFFSHORE LOGISTICS INCORPORATED+ 340,011
37,785 SKYWEST INCORPORATED 726,983
2,250,688
----------
TRANSPORTATION EQUIPMENT - 2.85%
20,930 AAR CORPORATION+ 257,020
13,729 ARCTIC CAT INCORPORATED 349,952
16,530 CLARCOR INCORPORATED 729,799
25,271 FLEETWOOD ENTERPRISES INCORPORATED+ 310,328
28,891 GENCORP INCORPORATED 312,890
14,816 GROUP 1 AUTOMOTIVE INCORPORATED+ 536,339
10,560 HUFFY CORPORATION+ 41,184
16,721 INTERMET CORPORATION 75,244
28,356 JLG INDUSTRIES INCORPORATED 405,491
19,002 MONACO COACH CORPORATION 509,254
22,893 OSHKOSH TRUCK CORPORATION 1,275,140
28,449 POLARIS INDUSTRIES INCORPORATED 1,292,723
12,884 STANDARD MOTOR PRODUCTS INCORPORATED 202,021
213
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (continued)
37,387 THOR INDUSTRIES INCORPORATED $1,004,215
10,356 TRIUMPH GROUP INCORPORATED+ 342,266
21,742 WABASH NATIONAL CORPORATION+ 513,111
22,131 WINNEBAGO INDUSTRIES INCORPORATED 689,823
8,846,800
----------
TRANSPORTATION SERVICES - 0.06%
16,338 PEGASUS SOLUTIONS INCORPORATED+ 190,828
----------
US GOVERNMENT - 0.14%
20,935 MANTECH INTERNATIONAL CORPORATION CLASS A+ 428,958
----------
WATER TRANSPORTATION - 0.17%
15,841 KIRBY CORPORATION+ 535,267
----------
WHOLESALE TRADE NON-DURABLE GOODS - 2.22%
12,445 ADVANCED MARKETING SERVICES INCORPORATED 123,205
29,469 DIMON INCORPORATED 209,230
9,071 ENESCO GROUP INCORPORATED+ 104,316
23,101 HAIN CELESTIAL GROUP INCORPORATED+ 510,301
12,616 INTERNATIONAL MULTIFOODS CORPORATION 311,868
24,251 MEN'S WEARHOUSE INCORPORATED+ 644,349
19,690 MYERS INDUSTRIES INCORPORATED 242,187
7,903 NASH FINCH COMPANY 187,143
29,929 PERFORMANCE FOOD GROUP COMPANY+ 1,028,061
28,375 PRIORITY HEALTHCARE CORPORATION CLASS B+ 604,104
12,316 SCHOOL SPECIALTY INCORPORATED+ 438,080
24,360 TRACTOR SUPPLY COMPANY+ 943,219
12,767 UNITED NATURAL FOODS INCORPORATED+ 613,965
22,056 UNITED STATIONERS INCORPORATED+ 928,558
6,888,586
----------
WHOLESALE TRADE-DURABLE GOODS - 2.66%
10,319 AM CASTLE & COMPANY+ 93,284
12,665 APPLIED INDUSTRIAL TECHNOLOGIES INCORPORATED 287,749
15,005 BARNES GROUP INCORPORATED 418,489
8,702 BUILDING MATERIALS HOLDINGS CORPORATION 152,720
8,596 DEPARTMENT 56 INCORPORATED+ 127,049
13,635 DIGI INTERNATIONAL INCORPORATED+ 134,577
19,540 HUGHES SUPPLY INCORPORATED 1,023,896
10,955 IMAGISTICS INTERNATIONAL INCORPORATED+ 482,568
30,414 INSIGHT ENTERPRISES INCORPORATED+ 585,469
14,767 KAMAN CORPORATION CLASS A 220,471
24,501 KNIGHT TRANSPORTATION INCORPORATED+ 587,534
6,201 LAWSON PRODUCTS INCORPORATED 202,215
25,573 OWENS & MINOR INCORPORATED 646,997
38,649 PEP BOYS-MANNY, MOE & JACK 1,072,516
20,925 RELIANCE STEEL & ALUMINUM COMPANY 735,514
16,235 RYERSON TULL INCORPORATED 212,516
214
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE-DURABLE GOODS (continued)
23,189 SCP POOL CORPORATION+ $ 864,022
14,243 TBC CORPORATION+ 418,317
8,265,903
------------
TOTAL COMMON STOCK (COST $242,901,870) 298,515,337
------------
COLLATERAL FOR SECURITIES LENDING - 26.38%
COLLATERAL FOR SECURITY LENDING 81,879,447
TOTAL COLLATERAL FOR SECURITIES LENDING
(COST $81,879,447) 81,879,447
------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CORPORATE BONDS & NOTES - 0.00%
WHOLESALE TRADE-DURABLE GOODS - 0.00%
1,632 TIMCO AVIATION SERVICES
INCORPORATED&(A) 0.00% 8,161
------------
TOTAL CORPORATE BONDS & NOTES
(COST $53) 8,161
============
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.40%
MUTUAL FUND - 3.14%
9,730,045 WELLS FARGO MONEY MARKET
TRUST~ 9,730,045
------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
US TREASURY BILLS - 0.26%
$ 40,000 US TREASURY BILL#^ 0.90% 5/13/04 39,956
75,000 US TREASURY BILL#^ 0.93 5/13/04 74,918
15,000 US TREASURY BILL#^ 0.94 5/13/04 14,983
680,000 US TREASURY BILL#^ 0.95 5/13/04 679,253
15,000 US TREASURY BILL#^ 0.92 5/13/04 14,983
824,093
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $10,554,138) 10,554,138
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $335,335,508)* 125.94% $390,957,083
OTHER ASSETS AND LIABILITIES, NET (25.94) (80,529,527)
------ ------------
TOTAL NET ASSETS 100.00% $310,427,556
====== ============
+ NON-INCOME EARNING 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.
& PAYMENT-IN-KIND (PIK) SECURITIES ARE SECURITIES IN WHICH THE ISSUER MAY
MAKE INTEREST OR DIVIDEND PAYMENTS IN CASH OR ADDITIONAL SECURITIES. THESE
ADDITIONAL SECURITIES GENERALLY HAVE THE SAME TERMS AS THE ORIGINAL
HOLDINGS.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS (SEE NOTE 2)
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
215
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 97.11%
AGRICULTURAL SERVICES - 1.01%
236,900 VCA ANTECH INCORPORATED+ $ 8,440,747
------------
AMUSEMENT & RECREATION SERVICES - 0.95%
256,600 GAYLORD ENTERTAINMENT COMPANY+ 7,928,940
------------
APPAREL & ACCESSORY STORES - 2.02%
422,200 GYMBOREE CORPORATION+ 7,080,294
251,100 STAGE STORES INCORPORATED+ 9,715,059
16,795,353
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS - 3.43%
369,800 POLO RALPH LAUREN CORPORATION 12,676,744
481,200 QUIKSILVER INCORPORATED+ 10,514,220
955,100 SCANSOFT INC+ 5,339,009
28,529,973
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.37%
628,200 CSK AUTO CORPORATION+ 11,376,702
------------
BUSINESS SERVICES - 16.73%
457,000 ANSWERTHINK CONSULTING GROUP INCORPORATED+ 3,528,040
1,050,300 BORELAND SOFTWARE CORPORATION+ 9,536,724
486,500 BRINK'S COMPANY 13,417,670
1,048,200 CNET NETWORKS INCORPORATED+ 10,827,906
475,700 DOUBLECLICK INCORPORATED+ 5,351,625
403,500 ELECTRONICS FOR IMAGING INCORPORATED+ 9,913,995
236,000 HYPERION SOLUTIONS CORPORATION+ 9,782,200
338,600 INTEGRATED ALARM SERVICES+ 3,220,086
377,600 MACROMEDIA INCORPORATED+ 7,578,432
268,800 MAPINFO CORPORATION+ 3,429,888
516,200 MPS GROUP INCORPORATED+ 5,740,144
566,000 NETIQ CORPORATION+ 7,901,360
728,800 OPSWARE INCORPORATED+ 5,509,728
390,500 PROGRESS SOFTWARE CORPORATION+ 9,368,095
274,600 RED HAT INCORPORATED+ 6,277,356
341,000 SERENA SOFTWARE INCORPORATED+ 6,939,350
368,600 SOTHEBY'S HOLDINGS INCORPORATED+ 4,736,510
267,800 STELLENT INCORPORATED+ 2,000,466
354,300 THQ INCORPORATED+ 7,167,489
851,500 TIBCO SOFTWARE INCORPORATED+ 6,956,755
139,183,819
------------
CHEMICALS & ALLIED PRODUCTS - 10.69%
428,500 APHTON CORPORATION+ 2,013,950
493,600 BIOMARIN PHARMACEUTICAL INCORPORATED+ 3,711,872
427,500 CELL THERAPEUTICS INCORPORATED+ 3,616,650
289,000 DENDREON CORPORATION+ 3,843,700
194,400 DIGENE CORPORATION+ 6,679,584
216
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
575,500 INDEVUS PHARMACEUTICALS INCORPORATED+ $ 3,481,775
431,700 IVAX CORPORATION+ 9,829,809
275,200 NBTY INCORPORATED+ 10,231,936
320,000 NEKTAR THERAPEUTICS+ 6,905,600
184,000 NEUROCRINE BIOSCIENCES INCORPORATED+ 10,874,400
367,300 NOVA CHEMICALS CORPORATION 9,215,557
253,700 NOVEN PHARMACEUTICALS INCORPORATED+ 5,446,939
214,500 UNITED THERAPEUTICS CORPORATION+ 5,111,535
210,900 VALEANT PHARMACEUTICALS INTERNATIONAL 5,034,183
188,000 ZYMOGENETICS INCORPORATED+ 2,904,600
88,902,090
-----------
COMMUNICATIONS - 1.05%
366,400 LIN TV CORPORATION CLASS A+ 8,723,984
-----------
DEPOSITORY INSTITUTIONS - 1.07%
279,600 ORIENTAL FINANCIAL GROUP INCORPORATED 8,905,260
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 9.60%
550,900 ARRIS GROUP INC.+ 5,068,280
297,700 ARTISAN COMPONENTS INCORPORATED+ 6,635,733
862,000 CHIPPAC INCORPORATED+ 6,818,420
131,700 DSP GROUP INCORPORATED+ 3,388,641
261,300 INTEGRATED CIRCUIT SYSTEMS INCORPORATED+ 6,540,339
514,600 INTEGRATED SILICON SOLUTION INCORPORATED+ 9,129,004
984,300 MEMC ELECTRONIC MATERIALS INCORPORATED+ 9,006,345
249,100 NOVELLUS SYSTEMS INCORPORATED+ 7,918,889
703,100 POWER-ONE INCORPORATED+ 7,776,286
472,700 SILCON STORAGE TECHNOLOGY INCORPORATED+ 6,116,738
308,100 TEKELEC+ 5,111,379
151,400 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES
INCORPORATED+ 6,358,800
79,868,854
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 7.31%
206,500 AMYLIN PHARMACEUTICALS INCORPORATED+ 4,891,985
233,600 ATRIX LABORATORIES INCORPORATED+ 5,956,800
643,400 BEARINGPOINT INCORPORATED+ 6,897,248
209,000 CEPHALON INCORPORATED+ 11,977,790
441,700 CORE LABORATORIES N.V.+ 9,364,040
273,800 DIGITAS INCORPORATED+ 2,817,402
171,000 NEUROCHEM INCORPORATED+ 3,657,690
291,200 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED+ 8,674,848
777,364 UNITEDGLOBALCOM INCORPORATED+ 6,599,820
60,837,623
-----------
FOOD STORES - 0.60%
420,400 WILD OATS MARKETS INCORPORATED+ 4,973,332
-----------
217
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 3.95%
322,600 COMMUNITY HEALTH SYSTEMS+ $ 8,977,958
541,300 ENZON PHARMACEUTICALS INCORPORATED+ 8,352,259
210,400 INVERESK RESEARCH GROUP INCORPORATED+ 5,979,568
571,000 SELECT MEDICAL CORPORATION 9,535,700
32,845,485
-----------
HEAVY CONSTRUCTION OTHER THAN BUILDING
CONSTRUCTION CONTRACTS - 0.62%
610,000 MCDERMOTT INTERNATIONAL INCORPORATED+ 5,117,900
-----------
HOLDING & OTHER INVESTMENT OFFICES - 0.98%
157,600 4KIDS ENTERTAINMENT INCORPORATED+ 3,525,512
362,800 CAPITAL LEASE FUNDING INC.+ 4,651,096
8,176,608
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.53%
277,000 GAMESTOP CORPORATION CLASS A+ 4,991,540
209,200 GUITAR CENTER INCORPORATED+ 7,769,688
12,761,228
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.97%
113,200 ASYST TECHNOLOGIES INCORPORATED+ 931,636
504,000 ENTEGRIS INCORPORATED+ 6,380,640
229,200 KOMAG INCORPORATED+ 4,217,280
168,600 WATSCO INCORPORATED 4,889,400
16,418,956
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.65%
204,700 RADWARE LIMITED+ 5,436,832
-----------
INSURANCE CARRIERS - 3.29%
235,600 AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY+ 3,027,460
274,600 ARGONAUT GROUP INCORPORATED+ 5,225,638
231,900 AXIS CAPITAL HOLDINGS LIMITED 6,852,645
170,700 DIRECT GENERAL CORPORATION 6,179,340
12,900 PLATINUM UNDERWRITERS HOLDINGS LIMITED 413,445
204,500 PXRE GROUP LIMITED 5,713,730
27,412,258
-----------
MANUFACTURING - 0.28%
629,000 PARADYNE NETWORKS INC+ 2,346,170
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.98%
186,500 BEI TECHNOLOGIES INCORPORATED 4,188,790
346,400 CREDENCE SYSTEMS CORPORATION+ 4,115,232
238,900 FORMFACTOR INCORPORATED+ 5,000,177
148,100 SONOSITE INCORPORATED+ 3,158,973
16,463,172
-----------
MEMBERSHIP ORGANIZATIONS - 0.11%
61,400 BRIGHTPOINT INCORPORATED+ 942,490
-----------
218
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 2.48%
303,600 MARVEL ENTERPRISES INCORPORATED+ $ 5,826,084
221,700 SPORTS AUTHORITY INCORPORATED+ 8,885,736
384,600 VALUEVISION MEDIA INCORPORATED+ 5,903,610
20,615,430
-----------
MOTION PICTURES - 1.80%
470,700 IMAX CORPORATION+ 2,772,423
639,300 LIONS GATE ENTERTAINMENT CORPORATION+ 3,995,625
437,400 MACROVISION CORPORATION+ 8,170,632
14,938,680
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 3.31%
300,400 CENTRAL FREIGHT LINES INCORPORATED+ 3,950,260
393,100 OVERNITE CORPORATION 9,041,300
278,200 SIRVA INCORPORATED+ 6,710,184
233,700 YELLOW ROADWAY CORPORATION+ 7,868,679
27,570,423
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.69%
386,200 CAPITALSOURCE INCORPORATED+ 8,670,190
322,900 ENCORE CAPITAL GROUP INCORPORATED+ 5,363,369
14,033,559
-----------
OIL & GAS EXTRACTION - 1.82%
342,200 DENBURY RESOURCES INCORPORATED+ 5,769,492
290,100 PIONEER NATURAL RESOURCES 9,370,230
15,139,722
-----------
PAPER & ALLIED PRODUCTS - 1.39%
334,700 BOISE CASCADE CORPORATION 11,597,355
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.82%
252,000 ELKCORP 6,826,680
-----------
PRIMARY METAL INDUSTRIES - 0.75%
100,900 NUCOR CORPORATION 6,203,332
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.74%
222,400 BELO CORPORATION CLASS A 6,173,824
-----------
RAILROAD TRANSPORTATION - 0.69%
412,600 KANSAS CITY SOUTHERN+ 5,735,140
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.16%
271,650 JARDEN CORPORATION+ 9,646,292
-----------
SECURITY & COMMODITY BROKERS, DEALERS,
EXCHANGES & SERVICES - 0.80%
940,200 INSTINET GROUP INCORPORATED+ 6,628,410
-----------
TEXTILE MILL PRODUCTS - 0.62%
646,200 INTERFACE INCORPORATED+ 5,137,290
-----------
219
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR - 1.80%
238,800 CHC HELICOPTER CORPORATION $ 6,581,328
436,000 SKYWEST INCORPORATED 8,388,640
14,969,968
------------
TRANSPORTATION EQUIPMENT - 1.29%
186,600 JLG INDUSTRIES INCORPORATED 2,668,380
566,200 WABTEC CORPORATION 8,062,688
10,731,068
------------
TRANSPORTATION SERVICES - 0.59%
221,300 PACER INTERNATIONAL INCORPORATED+ 4,877,452
------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.05%
224,600 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 5,484,732
261,100 SOURCE INTERLINK COMPANIES INCORPORATED+ 3,263,750
8,748,482
------------
WHOLESALE TRADE-DURABLE GOODS - 3.12%
243,100 CYTYC CORPORATION+ 5,408,974
175,500 HUGHES SUPPLY INCORPORATED 9,196,200
627,700 INGRAM MICRO INCORPORATED CLASS A+ 11,361,371
25,966,545
------------
TOTAL COMMON STOCK (COST $688,070,065) 807,927,428
------------
COLLATERAL FOR SECURITIES LENDING - 11.70%
COLLATERAL FOR SECURITY LENDING 97,376,128
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $97,376,127) 97,376,128
------------
WARRANTS - 0.00%
36,152 TIMCO AVIATION SERVICES INCORPORATED+(A) 181
TOTAL WARRANTS (COST $0) 181
------------
PRINCIPAL INTEREST RATE MATURITY DATE
CORPORATE BONDS & NOTES - 0.02%
$37,700 TIMCO AVIATION SERVICES
INCORPORATED&(A) 8.00% 01/02/2007 188,501
-------
TOTAL CORPORATE BONDS & NOTES (COST $100) 188,501
-------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.38%
MUTUAL FUND - 3.38%
28,125,851 WELLS FARGO MONEY MARKET TRUST 28,125,851
----------
TOTAL SHORT-TERM INVESTMENTS (COST $28,125,851) 28,125,851
----------
220
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TOTAL INVESTMENTS IN SECURITIES
(COST $813,572,143)* 112.21% $ 933,618,089
OTHER ASSETS AND LIABILITIES, NET (12.21) (101,599,339)
------ -------------
TOTAL NET ASSETS 100.00% $ 832,018,750
====== =============
+ NON-INCOME EARNING 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.
& PAYMENT-IN-KIND (PIK) SECURITIES ARE SECURITIES IN WHICH THE ISSUER MAY
MAKE INTEREST OR DIVIDEND PAYMENTS IN CASH OR ADDITIONAL SECURITIES. THESE
ADDITIONAL SECURITIES GENERALLY HAVE THE SAME TERMS AS THE ORIGINAL
HOLDINGS.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
221
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.59%
AMUSEMENT & RECREATION SERVICES - 0.89%
114,660 GAYLORD ENTERTAINMENT COMPANY+ $ 3,542,994
-----------
APPAREL & ACCESSORY STORES - 2.51%
158,340 AMERICAN EAGLE OUTFITTERS INCORPORATED+ 4,268,846
162,830 CHRISTOPHER & BANKS CORPORATION 3,437,341
107,750 TOO INCORPORATED+ 2,257,363
9,963,550
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS - 0.94%
205,250 RUSSELL CORPORATION 3,747,865
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.08%
169,446 DOLLAR THRIFTY AUTOMOTIVE GROUP INCORPORATED+ 4,281,900
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS - 2.75%
371,270 WALTER INDUSTRIES INCORPORATED 4,432,964
258,750 WCI COMMUNITIES INCORPORATED+ 6,476,512
10,909,476
-----------
BUSINESS SERVICES - 6.05%
195,050 DIGITALNET HOLDINGS INCORPORATED+ 3,979,020
239,100 INTERGRAPH CORPORATION+ 5,781,438
107,990 MARLIN BUSINESS SERVICES INCORPORATED+ 1,817,472
132,330 NCO GROUP INCORPORATED+ 3,092,552
288,020 RENT-WAY INCORPORATED+ 2,534,576
147,600 THQ INCORPORATED+ 2,985,948
217,660 UNITED RENTALS INCORPORATED+ 3,867,818
24,058,824
-----------
CHEMICALS & ALLIED PRODUCTS - 1.08%
151,470 HB FULLER COMPANY 4,307,807
-----------
COAL MINING - 1.19%
214,110 MASSEY ENERGY COMPANY 4,725,408
-----------
COMMUNICATIONS - 2.87%
150,110 CT COMMUNICATIONS INCORPORATED 2,076,021
159,240 EMMIS COMMUNICATIONS CORPORATION CLASS A+ 3,791,504
245,780 MASTEC INCORPORATED+ 2,327,537
400,000 MEDIACOM COMMUNICATIONS CORPORATION+ 3,208,000
11,403,062
-----------
DEPOSITORY INSTITUTIONS - 9.72%
275,146 BROOKLINE BANCORP INCORPORATED 4,388,579
100,160 CULLEN FROST BANKERS INCORPORATED 4,282,842
133,650 DIME COMMUNITY BANCSHARES 2,719,777
93,330 FIRST REPUBLIC BANK 3,598,805
319,880 GOLD BANC CORP INCORPORATED 5,214,044
79,360 PFF BANCORP INCORPORATED 3,025,997
220,430 PROVIDENT FINANCIAL SERVICES INCORPORATED 4,119,837
222
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (continued)
133,910 SUSQUEHANNA BANCSHARES INCORPORATED $ 3,432,113
189,180 TIERONE CORPORATION 4,443,838
168,470 UMPQUA HOLDINGS CORPORATION 3,401,409
38,627,241
-----------
EATING & DRINKING PLACES - 3.41%
755,020 CKE RESTAURANTS INCORPORATED+ 7,474,698
130,000 LANDRY'S RESTAURANTS INCORPORATED 3,877,900
201,220 TRIARC COMPANIES INCORPORATED CLASS B 2,205,371
13,557,969
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.24%
124,530 ALLETE INCORPORATED 4,369,758
197,440 ALLIANT ENERGY CORPORATION 5,145,286
175,500 CLECO CORPORATION 3,339,765
12,854,809
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 6.24%
184,480 DUPONT PHOTOMASKS INCORPORATED+ 4,291,005
127,900 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+ 3,073,437
370,810 GRAFTECH INTERNATIONAL LIMITED+ 5,543,610
382,590 JACUZZI BRANDS INCORPORATED+ 3,588,694
281,470 TECHNITROL INCORPORATED+ 5,291,636
188,250 TOLLGRADE COMMUNICATIONS INCORPORATED+ 3,004,470
24,792,852
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 1.57%
216,800 URS CORPORATION+ 6,239,504
-----------
FOOD & KINDRED PRODUCTS - 2.67%
51,800 ADOLPH COORS COMPANY CLASS B 3,597,510
352,140 HERCULES INCORPORATED+ 4,042,567
131,600 PILGRIMS PRIDE CORPORATION 2,951,788
10,591,865
-----------
FOOD STORES - 0.89%
441,700 PATHMARK STORES INCORPORATED+ 3,524,766
-----------
GENERAL MERCHANDISE STORES - 2.10%
264,930 SAKS INCORPORATED+ 4,662,768
250,960 SHOPKO STORES INCORPORATED+ 3,669,035
8,331,803
-----------
HEALTH SERVICES - 1.77%
441,330 BEVERLY ENTERPRISES INCORPORATED+ 2,824,512
136,020 TRIAD HOSPITALS INCORPORATED+ 4,192,136
7,016,648
-----------
223
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HOLDING & OTHER INVESTMENT OFFICES - 10.37%
50,860 ALEXANDRIA REAL ESTATE EQUITIES INCORPORATED $ 3,204,180
78,780 EASTGROUP PROPERTIES INCORPORATED 2,796,690
205,340 EQUITY ONE INCORPORATED 3,946,635
330,990 FELCOR LODGING TRUST INCORPORATED+ 3,448,916
118,560 GLADSTONE CAPITAL CORPORATION 2,666,414
167,720 GLENBOROUGH REALTY TRUST INCORPORATED 3,748,542
91,400 HEADWATERS INCORPORATED+ 2,341,668
100,210 KILROY REALTY CORPORATION 3,557,455
150,530 LASALLE HOTEL PROPERTIES 3,552,508
517,770 MERISTAR HOSPITALITY CORPORATION+ 3,598,501
142,980 NATIONWIDE HEALTH PROPERTIES INCORPORATED 3,184,165
137,460 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 5,176,744
41,222,418
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.11%
164,600 AZTAR CORPORATION+ 4,034,346
173,300 ISLE OF CAPRI CASINOS INCORPORATED+ 4,356,762
8,391,108
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.47%
132,600 FLOWSERVE CORPORATION+ 2,777,970
237,500 JOY GLOBAL INCORPORATED 6,666,625
108,000 ROBBINS & MYERS INCORPORATED 2,327,400
107,332 SPARTECH CORPORATION 2,672,567
284,700 WESTERN DIGITAL CORPORATION+ 3,197,181
104,300 YORK INTERNATIONAL CORPORATION 4,100,033
21,741,776
-----------
INSURANCE CARRIERS - 4.29%
107,240 AMERIGROUP CORPORATION+ 4,900,868
171,150 ARGONAUT GROUP INCORPORATED+ 3,256,985
142,200 PLATINUM UNDERWRITERS HOLDINGS LIMITED 4,557,510
360,510 UNIVERSAL AMERICAN FINANCIAL CORPORATION+ 4,326,120
17,041,483
-----------
LEATHER & LEATHER PRODUCTS - 0.83%
141,800 GENESCO INCORPORATED+ 3,286,924
-----------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS
TRANSPORTATION - 1.08%
295,880 LAIDLAW INTERNATIONAL INCORPORATED+ 4,305,054
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.86%
191,000 ARROW INTERNATIONAL INCORPORATED 5,708,990
140,900 COHERENT INCORPORATED+ 3,704,261
254,900 WHITE ELECTRONIC DESIGNS CORPORATION+ 1,949,985
11,363,236
-----------
MISCELLANEOUS RETAIL - 0.81%
211,300 ACTION PERFORMANCE COMPANIES INCORPORATED 3,226,551
-----------
224
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.70%
195,850 QUALITY DISTRIBUTION INCORPORATED+ $ 2,761,485
------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.01%
153,230 FEDERAL AGRICULTURAL MORTGAGE CORPORATION CLASS C+ 4,016,158
------------
OIL & GAS EXTRACTION - 2.51%
330,720 BRIGHAM EXPLORATION COMPANY+ 2,430,792
145,540 CAL DIVE INTERNATIONAL INCORPORATED+ 3,759,298
156,060 SOUTHWESTERN ENERGY COMPANY+ 3,764,167
9,954,257
------------
PAPER & ALLIED PRODUCTS - 1.40%
190,330 CARAUSTAR INDUSTRIES INCORPORATED+ 2,217,345
193,700 POPE & TALBOT INCORPORATED 3,329,703
5,547,048
------------
PERSONAL SERVICES - 0.79%
84,030 G & K SERVICES INCORPORATED CLASS A 3,127,597
------------
PRIMARY METAL INDUSTRIES - 3.10%
209,410 LONE STAR TECHNOLOGIES INCORPORATED+ 3,700,275
73,280 PRECISION CASTPARTS CORPORATION 3,226,518
217,970 STEEL DYNAMICS INCORPORATED+ 5,401,297
12,328,090
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.72%
143,730 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 2,874,600
------------
RAILROAD TRANSPORTATION - 0.75%
247,190 RAILAMERICA INCORPORATED+ 2,978,640
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.73%
148,440 A SCHULMAN INCORPORATED 2,916,846
------------
TRANSPORTATION BY AIR - 0.80%
177,740 EGL INCORPORATED+ 3,192,210
------------
TRANSPORTATION EQUIPMENT - 1.17%
170,680 AFTERMARKET TECHNOLOGY CORPORATION+ 2,507,289
67,820 UNITED DEFENSE INDUSTRIES INCORPORATED+ 2,155,998
4,663,287
------------
TRANSPORTATION SERVICES - 1.13%
202,790 GATX CORPORATION 4,495,854
------------
WHOLESALE TRADE-DURABLE GOODS - 2.99%
39,750 BORGWARNER INCORPORATED 3,371,992
147,100 TECH DATA CORPORATION+ 6,022,274
258,180 VISTEON CORPORATION 2,470,783
11,865,049
------------
TOTAL COMMON STOCK (COST $306,718,656) 383,778,014
------------
225
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 15.06%
COLLATERAL FOR SECURITY LENDING $ 59,830,206
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $59,830,206) 59,830,206
------------
SHORT-TERM INVESTMENTS - 3.60%
MUTUAL FUND - 3.60%
14,310,279 WELLS FARGO MONEY MARKET TRUST~ 14,310,279
------------
TOTAL SHORT-TERM INVESTMENTS (COST $14,310,279) 14,310,279
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $380,859,141)* 115.25% $457,918,499
OTHER ASSETS AND LIABILITIES, NET (15.25) (60,578,863)
------ ------------
TOTAL NET ASSETS 100.00% $397,339,636
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
226
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF ASSETS AND LIABILITIES --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED EQUITY INTERNATIONAL
GROWTH INCOME INDEX EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................ $176,864,299 $1,827,602,820 $1,767,843,137 $452,759,201
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................. 21,154,836 74,618,356 212,187,464 32,499,510
INVESTMENTS IN AFFILIATES ................................. 3,091,087 7,770,431 45,995,448 14,367,873
------------ -------------- -------------- ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............ 201,110,222 1,909,991,607 2,026,026,049 499,626,584
------------ -------------- -------------- ------------
CASH ...................................................... 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS .......... 0 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ........................... 0 0 98,084 0
RECEIVABLES FOR DIVIDENDS AND INTEREST .................... 59,158 3,255,387 2,216,012 3,014,061
PREPAID EXPENSES AND OTHER ASSETS ......................... 0 50,563 55,849 5,143
------------ -------------- -------------- ------------
TOTAL ASSETS ................................................. 201,169,380 1,913,297,557 2,028,395,994 502,645,788
------------ -------------- -------------- ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ... 0 0 19,700 0
FOREIGN TAXES PAYABLE ..................................... 0 0 0 11,979
PAYABLE FOR INVESTMENTS PURCHASED ......................... 0 0 0 1,146,076
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..... 39,034 876,756 85,041 389,269
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ................... 2,241 330 621 1,696
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................... 21,154,836 74,618,356 212,187,464 32,499,510
ACCRUED EXPENSES AND OTHER LIABILITIES .................... 30,453 0 0 0
TOTAL LIABILITIES ............................................ 21,226,564 75,495,442 212,292,826 34,048,530
------------ -------------- -------------- ------------
TOTAL NET ASSETS ............................................. $179,942,816 $1,837,802,115 $1,816,103,168 $468,597,258
============ ============== ============== ============
INVESTMENT AT COST ........................................... $181,839,905 $1,475,587,968 $1,737,628,070 $412,541,705
============ ============== ============== ============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 20,573,355 $ 72,281,114 $ 204,259,945 $ 31,324,462
------------ -------------- -------------- ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
228
STATEMENTS OF ASSETS AND LIABILITIES -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP LARGE CAP LARGE COMPANY
APPRECIATION VALUE GROWTH OVERSEAS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................ $ 96,584,742 $202,934,244 $3,526,173,458 $156,038,400
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................. 12,213,589 37,724,746 214,294,999 7,702,520
INVESTMENTS IN AFFILIATES ................................. 2,035,360 10,690,546 33,844,662 431,711
------------ ------------ -------------- ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............ 110,833,691 251,349,536 3,774,313,119 164,172,631
------------ ------------ -------------- ------------
CASH ...................................................... 0 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS .......... 0 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ........................... 447,208 2,725,549 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST .................... 94,317 164,718 3,429,883 889,851
PREPAID EXPENSES AND OTHER ASSETS ......................... 0 0 143,303 1,225
------------ ------------ -------------- ------------
TOTAL ASSETS ................................................. 111,375,216 254,239,803 3,811,730,967 165,063,707
------------ ------------ -------------- ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ... 0 0 0 0
FOREIGN TAXES PAYABLE ..................................... 5 0 358,346 0
PAYABLE FOR INVESTMENTS PURCHASED ......................... 249,788 3,740,497 33,844,662 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..... 39,167 92,767 2,015,252 102,382
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ................... 2,219 1,325 0 800
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................... 12,213,589 37,724,746 214,294,999 7,702,520
ACCRUED EXPENSES AND OTHER LIABILITIES .................... 58,270 15,808 0 0
TOTAL LIABILITIES ............................................ 12,563,038 41,575,143 250,513,259 7,805,702
------------ ------------ -------------- ------------
TOTAL NET ASSETS ............................................. $ 98,812,178 $212,664,660 $3,561,217,708 $157,258,005
============ ============ ============== ============
INVESTMENT AT COST ........................................... $ 98,847,437 $234,735,036 $3,221,352,913 $142,369,774
============ ============ ============== ============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 12,139,056 $ 35,757,909 $ 206,928,054 $ 7,513,455
------------ ------------ -------------- ------------
SMALL CAP SMALL COMPANY SMALL COMPANY
INDEX GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................ $299,347,591 $808,116,110 $383,778,014
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................. 81,879,447 97,376,128 59,830,206
INVESTMENTS IN AFFILIATES ................................. 9,730,045 28,125,851 14,310,279
------------ ------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............ 390,957,083 933,618,089 457,918,499
------------ ------------ ------------
CASH ...................................................... 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS .......... 69,400 0 0
RECEIVABLE FOR INVESTMENTS SOLD ........................... 1,718,878 13,205,625 1,845,564
RECEIVABLES FOR DIVIDENDS AND INTEREST .................... 191,668 226,353 196,515
PREPAID EXPENSES AND OTHER ASSETS ......................... 0 7,952 0
------------ ------------ ------------
TOTAL ASSETS ................................................. 392,937,029 947,058,019 459,960,578
------------ ------------ ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ... 0 0 0
FOREIGN TAXES PAYABLE ..................................... 0 0 0
PAYABLE FOR INVESTMENTS PURCHASED ......................... 589,133 17,089,644 2,523,507
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..... 31,579 571,940 241,710
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ................... 2,047 1,557 1,990
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................... 81,879,447 97,376,128 59,830,206
ACCRUED EXPENSES AND OTHER LIABILITIES .................... 7,267 0 23,529
TOTAL LIABILITIES ............................................ 82,509,473 115,039,269 62,620,942
------------ ------------ ------------
TOTAL NET ASSETS ............................................. $310,427,556 $832,018,750 $397,339,636
============ ============ ============
INVESTMENT AT COST ........................................... $335,335,508 $813,512,143 $380,859,141
============ ============ ============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 78,783,559 $ 92,665,711 $ 57,362,011
------------ ------------ ------------
229
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF OPERATIONS --
FOR THE SIX MONTHS ENDED
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED EQUITY INTERNATIONAL
GROWTH INCOME INDEX EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .......................................... $ 478,286 $ 22,160,856 $ 14,839,960 $ 3,020,750
INTEREST ............................................... 0 652 11,478 0
INCOME FROM AFFILIATED SECURITIES ...................... 24,379 37,236 124,004 40,266
SECURITIES LENDING INCOME .............................. 6,840 52,520 98,397 38,827
----------- ------------ ------------ -----------
TOTAL INVESTMENT INCOME ................................... 509,505 22,251,264 15,073,839 3,099,843
----------- ------------ ------------ -----------
EXPENSES
ADVISORY FEES .......................................... 467,159 6,868,527 1,288,928 2,428,401
CUSTODY FEES ........................................... 12,458 183,161 171,857 242,840
AUDIT FEES ............................................. 8,473 11,531 11,029 12,534
LEGAL FEES ............................................. 7,551 7,551 7,551 7,551
TRUSTEES' FEES ......................................... 3,195 3,195 3,195 3,195
OTHER FEES AND EXPENSES ................................ 1,290 16,325 9,783 8,159
----------- ------------ ------------ -----------
TOTAL EXPENSES ............................................ 500,126 7,090,290 1,492,343 2,702,680
----------- ------------ ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ........... (289,815) (2,010,233) (1,072,627) (466,799)
NET EXPENSES ........................................... 210,311 5,080,057 419,716 2,235,881
----------- ------------ ------------ -----------
NET INVESTMENT INCOME (LOSS) .............................. 299,194 17,171,207 14,654,123 863,962
----------- ------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 10,181,133 99,383,033 12,055,797 26,595,398
FUTURE TRANSACTIONS .................................... 0 0 2,330,796 0
----------- ------------ ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................. 10,181,133 99,383,033 14,386,593 26,595,398
----------- ------------ ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 6,725,878 171,345,843 185,653,277 56,352,766
FORWARD FOREIGN CURRENCY CONTRACTS ..................... 0 0 0 (253,793)
FUTURE TRANSACTIONS .................................... 0 0 822,838 0
----------- ------------ ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 6,725,878 171,345,843 186,476,115 56,098,973
=========== ============ ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .... 16,907,011 270,728,876 200,862,708 82,694,371
----------- ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................. $17,206,205 $287,900,083 $215,516,831 $83,558,333
=========== ============ ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ................ $ 0 $ 101,085 $ 0 $ 313,225
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON
OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
230
STATEMENTS OF OPERATIONS -- WELLS FARGO MASTER PORTFOLIOS
FOR THE SIX MONTHS ENDED
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP LARGE CAP LARGE COMPANY
APPRECIATION VALUE GROWTH OVERSEAS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(2)
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .......................................... $ 505,546 $ 1,889,903 $ 11,091,638 $ 1,423,910
INTEREST ............................................... 0 0 77 9,723
INCOME FROM AFFILIATED SECURITIES ...................... 17,321 22,529 270,831 10,517
SECURITIES LENDING INCOME .............................. 9,645 10,256 118,296 2,396
----------- ----------- ------------ -----------
TOTAL INVESTMENT INCOME ................................... 532,512 1,922,688 11,480,842 1,446,546
----------- ----------- ------------ -----------
EXPENSES
ADVISORY FEES .......................................... 335,928 746,536 12,993,713 611,329
CUSTODY FEES ........................................... 9,598 19,908 346,499 61,000
AUDIT FEES ............................................. 9,026 6,017 11,531 5,031
LEGAL FEES ............................................. 7,551 7,551 7,551 0
TRUSTEES' FEES ......................................... 3,195 3,009 3,195 2,515
OTHER FEES AND EXPENSES ................................ 1,504 15,216 16,737 831
----------- ----------- ------------ -----------
TOTAL EXPENSES ............................................ 366,802 798,237 13,379,226 680,706
----------- ----------- ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ........... (101,575) (241,048) (1,807,300) (210,159)
NET EXPENSES ........................................... 265,227 557,189 11,571,926 470,547
----------- ----------- ------------ -----------
NET INVESTMENT INCOME (LOSS) .............................. 267,285 1,365,499 (91,084) 975,999
----------- ----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 8,148,894 7,056,684 56,977,127 2,355,691
FUTURE TRANSACTIONS .................................... 0 0 0 0
----------- ----------- ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................. 8,148,894 7,056,684 56,977,127 2,355,691
----------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 3,182,882 21,272,044 209,165,061 21,810,624
FORWARD FOREIGN CURRENCY CONTRACTS ..................... 0 0 0 0
FUTURE TRANSACTIONS .................................... 0 0 0 0
----------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 3,182,882 21,272,044 209,165,061 21,810,624
=========== =========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .... 11,331,776 28,328,728 266,142,188 24,166,315
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................. $11,599,061 $29,694,227 $266,051,104 $25,142,314
=========== =========== ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ................ $ 694 $ 0 $ 358,346 $ 150,557
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON
OCTOBER 31, 2003.
SMALL CAP SMALL COMPANY SMALL COMPANY
INDEX GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) .......................................... $ 1,126,536 $ 693,930 $ 1,931,925
INTEREST ............................................... 13,944 100 0
INCOME FROM AFFILIATED SECURITIES ...................... 97,459 88,351 50,119
SECURITIES LENDING INCOME .............................. 56,320 74,400 32,294
----------- ------------ -----------
TOTAL INVESTMENT INCOME ................................... 1,294,259 856,781 2,014,338
----------- ------------ -----------
EXPENSES
ADVISORY FEES .......................................... 352,217 3,526,878 1,576,122
CUSTODY FEES ........................................... 28,177 78,375 35,025
AUDIT FEES ............................................. 8,473 9,525 8,473
LEGAL FEES ............................................. 7,551 7,551 7,551
TRUSTEES' FEES ......................................... 3,195 3,195 3,195
OTHER FEES AND EXPENSES ................................ 1,261 4,440 1,372
----------- ------------ -----------
TOTAL EXPENSES ............................................ 400,874 3,629,964 1,631,738
----------- ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ........... (201,277) (387,291) (306,834)
NET EXPENSES ........................................... 199,597 3,242,673 1,324,904
----------- ------------ -----------
NET INVESTMENT INCOME (LOSS) .............................. 1,094,662 (2,385,892) 689,434
----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 8,521,043 113,774,200 16,940,937
FUTURE TRANSACTIONS .................................... 2,507,510 0 0
----------- ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................. 11,028,553 113,774,200 16,940,937
----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY
TRANSLATION ......................................... 38,910,724 15,462,627 45,392,956
FORWARD FOREIGN CURRENCY CONTRACTS ..................... 0 0 0
FUTURE TRANSACTIONS .................................... 1,417,025 0 0
----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ............................................ 40,327,749 15,462,627 45,392,956
=========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .... 51,356,302 129,236,827 62,333,893
----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................. $52,450,964 $126,850,935 $63,023,327
=========== ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ................ $ 0 $ 10,715 $ 0
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON
OCTOBER 31, 2003.
231
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 68,952,232 56,814,141
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 299,194 179,712
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 10,181,133 (64,187)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 6,725,878 14,031,766
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 17,206,205 14,147,291
------------ -----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 104,210,277 16,389,552
WITHDRAWALS ................................................................. (10,425,898) (18,398,752)
------------ -----------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... 93,784,379 (2,009,200)
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 110,990,584 12,138,091
============ ===========
ENDING NET ASSETS .............................................................. $179,942,816 $68,952,232
------------ -----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
232
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 1,722,271,878 1,711,701,493
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 17,171,207 36,000,448
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 99,383,033 50,225,235
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 171,345,843 250,428,035
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 287,900,083 336,653,718
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 29,410,273 210,108,839
WITHDRAWALS ................................................................. (201,780,119) (536,192,172)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... (172,369,846) (326,083,333)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 115,530,237 10,570,385
============== ==============
ENDING NET ASSETS .............................................................. $1,837,802,115 $1,722,271,878
-------------- --------------
INDEX PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 1,519,471,820 1,164,265,860
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 14,654,123 23,010,345
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 14,386,593 14,525,511
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 186,476,115 246,896,921
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 215,516,831 284,432,777
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 183,195,630 258,211,867
WITHDRAWALS ................................................................. (102,081,113) (187,438,684)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... 81,114,517 70,773,183
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 296,631,348 355,205,960
============== ==============
ENDING NET ASSETS .............................................................. $1,816,103,168 $1,519,471,820
-------------- --------------
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 558,639,567 481,041,740
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 863,962 4,337,817
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 26,595,398 (79,412,734)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 56,098,973 168,496,802
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 83,558,333 93,421,885
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 22,606,510 158,117,683
WITHDRAWALS ................................................................. (196,207,152) (173,941,741)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... (173,600,642) (15,824,058)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... (90,042,309) 77,597,827
============ ============
ENDING NET ASSETS .............................................................. $468,597,258 $558,639,567
------------ ------------
233
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 87,988,404 63,323,538
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 267,285 221,608
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 8,148,894 (3,564,699)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 3,182,882 15,929,531
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 11,599,061 12,586,440
----------- ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 5,574,313 29,128,969
WITHDRAWALS ................................................................. (6,349,600) (17,050,543)
----------- ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... (775,287) 12,078,426
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 10,823,774 24,664,866
=========== ============
ENDING NET ASSETS .............................................................. $98,812,178 $ 87,988,404
----------- ------------
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON AUGUST 29, 2003.
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
234
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP VALUE
PORTFOLIO(1)
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 176,504,265 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 1,365,499 52,379
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 7,056,684 25,384
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 21,272,044 (4,657,544)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 29,694,227 (4,579,781)
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 17,761,068 181,318,237
WITHDRAWALS ................................................................. (11,294,900) (234,191)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... 6,466,168 181,084,046
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 36,160,395 176,504,265
============ ============
ENDING NET ASSETS .............................................................. $212,664,660 $176,504,265
------------ ------------
LARGE COMPANY
GROWTH PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 3,142,794,537 2,012,518,027
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ (91,084) (6,229,112)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 56,977,127 (64,373,898)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 209,165,061 677,253,867
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 266,051,104 606,650,857
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 438,725,668 708,049,977
WITHDRAWALS ................................................................. (286,353,601) (184,424,324)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... 152,372,067 523,625,653
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 418,423,171 1,130,276,510
============== ==============
ENDING NET ASSETS .............................................................. $3,561,217,708 $3,142,794,537
-------------- --------------
OVERSEAS PORTFOLIO(2)
---------------------
(UNAUDITED)
FOR THE
PERIOD ENDED
MARCH 31, 2004
---------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ 975,999
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 2,355,691
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 21,810,624
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................ 25,142,314
------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 149,935,964
WITHDRAWALS ................................................................. (17,820,273)
------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS ... 132,115,691
------------
NET INCREASE (DECREASE) IN NET ASSETS .......................................... 157,258,005
============
ENDING NET ASSETS .............................................................. $157,258,005
------------
235
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS .................................. 239,357,242 141,023,226
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................... 1,094,662 1,430,041
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............... 11,028,553 6,972,745
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ........................................ 40,327,749 42,099,307
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ 52,450,964 50,502,093
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ......................................... 38,352,719 81,762,912
WITHDRAWALS ........................................... (19,733,369) (33,930,989)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS .................................. 18,619,350 47,831,923
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... 71,070,314 98,334,016
============ ============
ENDING NET ASSETS ........................................ $310,427,556 $239,357,242
------------ ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
236
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS .................................. 673,051,277 470,274,154
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................... (2,385,892) (1,931,579)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............... 113,774,200 57,009,543
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ........................................ 15,462,627 126,797,328
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ 126,850,935 181,875,292
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ......................................... 71,248,909 117,055,759
WITHDRAWALS ........................................... (39,132,371) (96,153,928)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS .................................. 32,116,538 20,901,831
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... 158,967,473 202,777,123
============ ============
ENDING NET ASSETS ........................................ $832,018,750 $673,051,277
------------ ============
SMALL COMPANY VALUE PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ------------------------------------------------------------------------------------------------
BEGINNING NET ASSETS .................................. 291,539,627 154,974,427
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................... 689,434 1,581,492
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............... 16,940,937 17,897,659
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ........................................ 45,392,956 58,474,588
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ 63,023,327 77,953,739
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ......................................... 64,787,892 108,693,698
WITHDRAWALS ........................................... (22,011,210) (50,082,237)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS .................................. 42,776,682 58,611,461
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... 105,800,009 136,565,200
============ ============
ENDING NET ASSETS ........................................ $397,339,636 $291,539,627
============ ============
237
WELLS FARGO MASTER PORTFOLIOS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
---------------------------------------------------------- PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES RETURN(3) RATE
- ---------------------------------------------------------------------------------------------------------------------------
DISCIPLINED GROWTH
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.48% 0.80% (0.47)% 0.33% 14.57% 59%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.28% 0.88% (0.15)% 0.73% 25.65% 117%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.27% 0.91% (0.18)% 0.73% (12.57)% 156%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 0.15% 0.82% (0.10)% 0.72% (20.55)% 181%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 0.20% 0.84% (0.09)% 0.75% 19.94% 106%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. (0.04)% 1.02% (0.05)% 0.97% 0.07% 21%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 0.15% 1.02% (0.05)% 0.97% 9.67% 90%
EQUITY INCOME
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 1.87% 0.77% (0.22)% 0.55% 17.20% 8%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 2.01% 0.78% (0.11)% 0.67% 20.66% 9%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 1.61% 0.78% (0.10)% 0.68% (19.49)% 12%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 1.29% 0.78% (0.10)% 0.68% (8.61)% 3%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.42% 0.76% (0.09)% 0.67% 1.59% 9%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 1.43% 0.57% (0.03)% 0.54% (11.66)% 5%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 1.53% 0.57% (0.02)% 0.55% 15.13% 3%
INDEX
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 1.71% 0.17% (0.12)% 0.05% 14.06% 1%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 1.70% 0.18% (0.05)% 0.13% 24.42% 3%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 1.40% 0.18% (0.05)% 0.13% (20.52)% 4%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 1.23% 0.18% (0.05)% 0.13% (26.56)% 2%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.13% 0.18% (0.05)% 0.13% 13.21% 8%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 1.25% 0.23% (0.05)% 0.18% (2.92)% 11%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 1.35% 0.23% (0.05)% 0.18% 20.78% 4%
INTERNATIONAL EQUITY
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.36% 1.11% (0.19)% 0.92% 18.13% 20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.81% 1.12% (0.03)% 1.09% 18.39% 75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.54% 1.26% (0.02)% 1.24% (19.04)% 38%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 0.57% 1.31% (0.04)% 1.27% (28.86)% 33%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 0.06% 1.39% (0.09)% 1.30% 21.90% 64%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.21% 1.40% (0.00)% 1.40% 34.91% 11%
FEBRUARY 12, 1999(2) TO MAY 31, 1999 ............... 1.92% 1.45% (0.05)% 1.40% 3.84% 12%
LARGE CAP APPRECIATION
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.56% 0.76% (0.21)% 0.55% 13.17% 84%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.29% 0.81% (0.09)% 0.72% 18.50% 153%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.37% 0.88% (0.16)% 0.72% (20.04)% 123%
AUGUST 31, 2001(2) TO SEPTEMBER 30, 2001 ........... 1.51% 0.79% (0.07)% 0.72% (7.01)% 10%
LARGE CAP VALUE
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 1.37% 0.80% (0.24)% 0.56% 16.70% 67%
AUGUST 29, 2003(2) TO SEPTEMBER 30, 2003 ........... 0.64% 0.86% (0.32)% 0.54% (1.80)% 3%
LARGE COMPANY GROWTH
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... (0.01)% 0.77% (0.11)% 0.66% 8.53% 9%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. (0.24)% 0.78% (0.02)% 0.76% 27.90% 13%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. (0.34)% 0.78% 0.00% 0.78% (22.32)% 18%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. (0.29)% 0.78% 0.00% 0.78% (39.70)% 13%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. (0.30)% 0.77% 0.00% 0.77% 33.13% 9%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. (0.07)% 0.72% (0.03)% 0.69% (0.03)% 5%
JUNE 1, 1998 TO MAY 31, 1999 ....................... (0.19)% 0.72% (0.01)% 0.71% 40.63% 28%
OVERSEAS
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 31, 2003(2) TO MARCH 31, 2004 (UNAUDITED) .. 1.60% 1.12% (0.35)% 0.77% 17.00% 11%
SMALL CAP INDEX
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.78% 0.28% (0.14)% 0.14% 21.53% 8%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.74% 0.31% (0.02)% 0.29% 27.79% 11%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.57% 0.33% (0.01)% 0.32% (2.60)% 17%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 0.90% 0.33% (0.01)% 0.32% (12.27)% 25%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.03% 0.34% (0.01)% 0.33% 23.09% 42%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.53% 0.50% (0.06)% 0.44% 0.53% 23%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 0.76% 0.48% (0.04)% 0.44% (7.28)% 26%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
238
FINANCIAL HIGHLIGHTS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
---------------------------------------------------------- PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES RETURN(3) RATE
- ---------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... (0.61)% 0.92% (0.10)% 0.82% 18.69% 77%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. (0.35)% 0.94% (0.02)% 0.92% 37.90% 163%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. (0.40)% 0.94% 0.00% 0.94% (19.95)% 169%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. (0.17)% 0.94% 0.00% 0.94% (23.09)% 206%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. (0.28)% 0.94% 0.00% 0.94% 34.41% 203%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. (0.22)% 0.98% (0.04)% 0.94% (1.41)% 55%
JUNE 1, 1998 TO MAY 31, 1999 ....................... (0.25)% 0.98% 0.00% 0.98% (10.45)% 154%
SMALL COMPANY VALUE
- ---------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.39% 0.93% (0.18)% 0.75% 20.83% 24%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.70% 0.95% (0.16)% 0.79% 38.33% 80%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.68% 0.98% (0.19)% 0.79% (2.16)% 98%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 1.32% 0.97% (0.18)% 0.79% 10.70% 90%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.37% 1.00% (0.19)% 0.81% 14.05% 114%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.83% 1.04% (0.04)% 1.00% (4.23)% 28%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 0.76% 1.04% (0.05)% 0.99% (11.22)% 97%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
239
WELLS FARGO MASTER PORTFOLIOS 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) Commencement of operations.
(3) Total return calculations would have been lower had certain expenses not
been waived or reimbursed during the periods shown. Returns for periods
less than one year are not annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
240
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Master Trust (the "Trust") is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust currently has 16 separate investment
portfolios. These financial statements present the Disciplined Growth Portfolio,
Equity Income Portfolio, Index Portfolio, International Equity Portfolio, Large
Cap Appreciation Portfolio, Large Cap Value Portfolio, Large Company Growth
Portfolio, Overseas Portfolio, Small Cap Index Portfolio, Small Company Growth
Portfolio, and Small Company Value Portfolio (each, a "Fund" and collectively,
the "Funds").
Interests in the Funds are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, 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.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
If trading or events occurring in other markets after the close of the principal
exchange in which the foreign investments are traded are expected to materially
affect the value of the investments, then those investments are fair valued
following procedures approved by the Board of Trustees.
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.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal income
tax purposes. The Funds of the Trust are not required to pay federal income
taxes on their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gains and
losses of a Fund is deemed to have been "passed through" to the interestholders
in proportion to their holdings of the Fund regardless of whether such interest,
dividends, or gains have been distributed by the Fund.
FUTURES CONTRACTS
The Fund(s) may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an
241
WELLS FARGO MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
amount of cash equal to the daily fluctuation in the value of the contract. Such
receipts or payments are known as "variation margin" and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the entire value of the
underlying contracts. Risks of entering into futures contracts include the
possibility that there may be an illiquid market and that a change in the value
of the contract may not correlate with changes in the value of the underlying
securities. At March 31, 2004, the following Fund(s) held futures contracts:
Net Unrealized
Expiration Notional Appreciation
Fund Contracts Type Date Contract Value (Depreciation)
INDEX PORTFOLIO 219 Long S&P 500 Index June 2004 61,588,275 (124,600)
SMALL CAP INDEX PORTFOLIO 48 Long Russell 2000 Index June 2004 14,174,400 345,000
REPURCHASE AGREEMENTS
The Fund(s) may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other funds advised by Wells Fargo
Funds Management, LLC. The repurchase agreements must be fully collateralized
based on values that are marked to market daily. The collateral may be held by
an agent bank under a tri-party agreement. It is the custodian's responsibility
to value collateral daily and to take action to obtain additional collateral as
necessary to maintain market value equal to or greater than the resale price.
The repurchase agreements are collateralized by instruments such as U.S.
Treasury, federal agency, or high-grade corporate obligations. There could be
potential loss to a Fund in the event that such Fund is delayed or prevented
from exercising its rights to dispose of the collateral, including the risk of a
possible decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
SECURITY LOANS
The Fund(s) may loan securities in return for securities and cash
collateral, which is invested in various short-term fixed income securities. A
Fund may receive compensation for lending securities in the form of fees or by
retaining a portion of interest on the investment securities or cash received as
collateral. A Fund also continues to receive interest or dividends on the
securities loaned. Security loans are secured at all times by collateral. The
collateral is equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered into. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the loan
are reflected in the value of the Fund. The risks from securities lending are
that the borrower may not provide additional collateral when required or return
the securities when due or when called for by the Fund. Wells Fargo Bank, N.A.,
the Funds' custodian, acts as the securities lending agent for the Funds and
receives for its services 40% of the revenues earned on the securities lending
activities and incurs all expenses. The value of the securities on loan and the
value of the related collateral at March 31, 2004 are shown on the Statement of
Assets and Liabilities.
At March 31, 2004, cash collateral was invested as follows:
Repurchase Short-Term Mid-Term Money
Fund Agreements Securities Securities Market Fund Total
DISCIPLINED GROWTH PORTFOLIO 20% 72% 5% 3% 100%
EQUITY INCOME PORTFOLIO 31% 48% 19% 2% 100%
INDEX PORTFOLIO 20% 66% 12% 2% 100%
INTERNATIONAL EQUITY PORTFOLIO 25% 64% 7% 4% 100%
LARGE CAP APPRECIATION PORTFOLIO 18% 76% 4% 2% 100%
LARGE CAP VALUE PORTFOLIO 15% 66% 17% 2% 100%
LARGE COMPANY GROWTH PORTFOLIO 19% 58% 20% 3% 100%
SMALL CAP INDEX PORTFOLIO 25% 65% 6% 4% 100%
SMALL COMPANY GROWTH PORTFOLIO 25% 62% 11% 2% 100%
SMALL COMPANY VALUE PORTFOLIO 23% 66% 8% 3% 100%
242
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and, if applicable, for
supervising the sub-adviser responsible for day-to-day portfolio management.
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. The fees related to sub-advisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment sub-adviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Sub-Advisory
Advisory Fees Fees (% of
(% of Average Average Daily Average Daily
Portfolio Daily Net Assets) Sub-Adviser Net Assets Net Assets)
DISCIPLINED GROWTH PORTFOLIO 0.75 Smith Asset Management $0 - $200 million 0.30
$200 - $500 million 0.20
> $500 million 0.15
EQUITY INCOME PORTFOLIO 0.75 Wells Capital Management $0 - $200 million 0.25
$200 - $400 million 0.20
> $400 million 0.15
INDEX PORTFOLIO 0.15 Wells Capital Management $0 - $200 million 0.02
> $200 million 0.01
INTERNATIONAL EQUITY PORTFOLIO 1.00 Wells Capital Management $0 - $200 million 0.35
> $200 million 0.25
LARGE CAP APPRECIATION 0.70 Cadence Capital Management $0 - $250 million 0.30
PORTFOLIO $250 - $500 million 0.20
$500 million - $1 billion 0.15
> $1 billion 0.10
LARGE CAP VALUE PORTFOLIO 0.75 Systematic Financial $0 - $150 million 0.30
Management $150 - $350 million 0.20
$350 - $750 million 0.15
$750 million -$1 billion 0.13
> $1 billion 0.10
LARGE COMPANY 0.75 Peregrine Capital Management $0 - $25 million 0.75
GROWTH PORTFOLIO $25 - $50 million 0.60
$50 - $275 million 0.50
> $275 million 0.30
OVERSEAS PORTFOLIO 1.00 LSV Asset Management $0 - $150 million 0.35
$150 - $500 million 0.40
$500 - $750 million 0.35
$750 million -$1 billion 0.325
> $1 billion 0.30
SMALL CAP INDEX PORTFOLIO 0.25 Wells Capital Management $0 - $200 million 0.02
> $200 million 0.01
SMALL COMPANY 0.90 Peregrine Capital Management $0 - $50 million 0.90
GROWTH PORTFOLIO $50 - $180 million 0.75
$180 - $340 million 0.65
$340 - $685 million 0.50
$685 - $735 million 0.52
> $735 million 0.55
SMALL COMPANY VALUE PORTFOLIO 0.90 Peregrine Capital Management $0 - $175 million 0.50
> $175 million 0.75
ADMINISTRATION AND TRANSFER AGENT FEES
Currently, there are no administration or transfer agency fees
charged to the Master Trust.
243
WELLS FARGO MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to certain transaction charges plus a monthly fee for
custody services at the following annual rates:
Fund % of Average Daily Net Assets
INTERNATIONAL EQUITY PORTFOLIO 0.10%
OVERSEAS PORTFOLIO 0.10%
ALL OTHER FUNDS 0.02%
OTHER FEES
PFPC Inc. ("PFPC") serves as fund accountant. PFPC currently does not
receive a fee for its services, but is entitled to be reimbursed for all
out-of-pocket expenses reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement
of Operations, for the six months ended March 31, 2004, were waived by Funds
Management, first from advisory fees, and then any remaining amount
consecutively from administration, custody and shareholder servicing fees
collected, if any.
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 the six
months ended March 31, 2004, were as follows:
Portfolio Purchases at Cost Sales Proceeds
DISCIPLINED GROWTH PORTFOLIO $163,444,936 $ 69,523,733
EQUITY INCOME PORTFOLIO 151,739,961 313,196,485
INDEX PORTFOLIO 117,134,211 22,487,826
INTERNATIONAL EQUITY PORTFOLIO 95,947,012 278,150,055
LARGE CAP APPRECIATION PORTFOLIO 78,120,373 77,625,379
LARGE CAP VALUE PORTFOLIO 129,868,420 129,157,664
LARGE COMPANY GROWTH PORTFOLIO 451,548,812 289,752,626
OVERSEAS PORTFOLIO 148,610,735 16,967,680
SMALL CAP INDEX PORTFOLIO 58,587,235 20,841,239
SMALL COMPANY GROWTH PORTFOLIO 602,373,920 587,022,856
SMALL COMPANY VALUE PORTFOLIO 119,178,715 82,643,381
244
OTHER INFORMATION (UNAUDITED) WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
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.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees
("Trustees") of the Wells Fargo Master Trust (the "Trust"). This table
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 Funds Trust and Wells Fargo Variable 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 since 1992 Retired. Director, Federal None
72 Farm Credit Banks Funding
Corporation and Farm Credit
System Financial Assistance
Corporation until February
1999.
- ----------------------------------------------------------------------------------------------
J. Tucker Morse Trustee since 1987 Private Investor/Real Estate None
59 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 since 1987 Wake Forest University, None
61 Calloway School of Business
and Accountancy, Benson-Pruitt
Professorship since 1999,
Associate Professor of Finance
1994 - 1999.
- ------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee since 1998 Chairman, CEO, and Co-Founder None
61 (Lead Trustee since of Crystal Geyser Water
2001) Company and President of
Crystal Geyser Roxane Water
Company.
- ------------------------------------------------------------------------------------------------
Richard M. Leach Trustee since 1987 Retired. Prior thereto, None
70 President of Richard M. Leach
Associates (a financial
consulting firm).
- ------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee since 1996 Senior Counselor to the public None
52 relations firm of Himle-Horner
and Senior Fellow at the
Humphrey Institute,
Minneapolis, Minnesota (a
public policy organization).
- ------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee since 1996 Principal in the law firm of None
63 Willeke & Daniels.
- ------------------------------------------------------------------------------------------------
245
WELLS FARGO MASTER PORTFOLIOS 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 2003 Executive Vice President of None
45 Wells 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 2001 to 2003. Vice
President of Wells Fargo Bank,
N.A. from 1997 to 2000.
- --------------------------------------------------------------------------------------------------
Stacie D. DeAngelo Treasurer, since 2003 Senior Vice President of Wells None
35 Fargo Bank, N.A. Senior 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 Senior Vice President and None
43 Counsel of Wells Fargo Bank,
N.A. Senior Vice President and
Secretary of Wells Fargo Funds
Management, LLC. Vice
President and Counsel of Wells
Fargo Bank, N.A. since 1996.
- --------------------------------------------------------------------------------------------------
* 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.
246
LIST OF ABBREVIATIONS WELLS FARGO STOCK FUNDS
- --------------------------------------------------------------------------------
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
247
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THIS PAGE IS INTENTIONALLY LEFT BLANK --
THIS PAGE IS INTENTIONALLY LEFT BLANK --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
More information about WELLS FARGO This report and the financial
FUNDS(R) is available free upon statements contained herein are
request. to obtain literature, please submitted for the general information
write or call: of the shareholders of the WELLS FARGO
FUNDS. If this report is used for
WELLS FARGO FUNDS Promotional purposes, distribution of
Po Box 8266 the report must be accompanied or
Boston, Ma 02266-8266 preceded by a current prospectus. for a
prospectus containing more complete
WELLS FARGO FUNDS Investor Services: information, including charges and
1-800-222-8222 or visit our web site expenses, call 1-800-222-8222. Please
At www.wellsfargofunds.com. 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
-----------------------------------------------------
(C)2004 Wells Fargo Funds Management, LLC. All rights reserved. SAR 001 (05/04)
[LOGO]
WELLS
FARGO
FUNDS
Wells Fargo ASSET ALLOCATION FUNDS
SEMI-ANNUAL REPORT
WELLS FARGO ASSET ALLOCATION FUND
WELLS FARGO GROWTH BALANCED FUND
WELLS FARGO INDEX ALLOCATION FUND
WELLS FARGO MODERATE BALANCED FUND
WELLS FARGO STRATEGIC GROWTH ALLOCATION FUND
WELLS FARGO STRATEGIC INCOME FUND
MARCH 31, 2004
WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ................................................... 1
- --------------------------------------------------------------------------------
PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND ................................................. 2
GROWTH BALANCED FUND .................................................. 4
INDEX ALLOCATION FUND ................................................. 6
MODERATE BALANCED FUND ................................................ 8
STRATEGIC GROWTH ALLOCATION FUND ...................................... 10
STRATEGIC INCOME FUND ................................................. 12
PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND ................................................. 14
GROWTH BALANCED FUND .................................................. 29
INDEX ALLOCATION FUND ................................................. 30
MODERATE BALANCED FUND ................................................ 45
STRATEGIC GROWTH ALLOCATION FUND ...................................... 46
STRATEGIC INCOME FUND ................................................. 47
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES .................................. 48
STATEMENTS OF OPERATIONS .............................................. 50
STATEMENTS OF CHANGES IN NET ASSETS ................................... 52
FINANCIAL HIGHLIGHTS .................................................. 56
NOTES TO FINANCIAL HIGHLIGHTS ............................................ 62
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS ............................................ 63
- --------------------------------------------------------------------------------
MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO .......................................... 69
EQUITY INCOME PORTFOLIO ............................................... 72
INDEX PORTFOLIO ....................................................... 75
INTERNATIONAL EQUITY PORTFOLIO ........................................ 90
LARGE CAP APPRECIATION PORTFOLIO ...................................... 94
LARGE CAP VALUE PORTFOLIO ............................................. 98
LARGE COMPANY GROWTH PORTFOLIO ........................................ 102
OVERSEAS PORTFOLIO .................................................... 104
SMALL CAP INDEX PORTFOLIO ............................................. 109
SMALL COMPANY GROWTH PORTFOLIO ........................................ 126
SMALL COMPANY VALUE PORTFOLIO ......................................... 132
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES .................................. 138
STATEMENTS OF OPERATIONS .............................................. 140
STATEMENTS OF CHANGES IN NET ASSETS ................................... 142
FINANCIAL HIGHLIGHTS .................................................. 148
NOTES TO FINANCIAL STATEMENTS ............................................ 151
- --------------------------------------------------------------------------------
OTHER INFORMATION ........................................................ 155
- --------------------------------------------------------------------------------
LIST OF ABBREVIATIONS .................................................... 157
- --------------------------------------------------------------------------------
-------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
SHAREHOLDER LETTER WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
We are pleased to provide you with this Wells Fargo Asset Allocation Funds
semi-annual report for the six-month period ended March 31, 2004. 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: A MODERATE, JOBLESS RECOVERY
- --------------------------------------------------------------------------------
Robust consumer spending and the strong performance in the housing and
manufacturing sectors supported the economic expansion and countered the lack of
job creation during the reporting period. Increased tax refunds and gains in
household wealth from the past year's stock market rally bolstered consumer
spending, while lower mortgage rates made housing more affordable and increased
household cash flow. Finally, domestic spending, solid growth of exports amid
the global economic recovery, and the weaker dollar's positive impact on U.S.
competitiveness abroad helped the manufacturing sector.
The Federal Reserve Board (the Fed) kept short-term interest rates at 1%
during the period, the lowest level in more than 45 years. The Fed maintained
the low rates as the economy continued to experience a moderate, jobless
recovery with little threat of inflation. By the end of the reporting period,
business confidence also had improved and corporate earnings continued to grow,
signaling an increase in capital spending and the possibility of employment
growth.
STOCKS:UPWARD MOMENTUM
- --------------------------------------------------------------------------------
The S&P 500 Index finished the reporting period with a 14.07% gain. In
eight of the ten S&P 500 sectors, over two-thirds of the stocks surpassed
previous market highs (technology and telecommunications were the exceptions).
As consumer confidence improved and investors became more willing to assume
risk, small cap stocks outperformed large cap stocks. In addition, international
stocks outperformed domestic stocks due to the U.S. dollar's steep decline in
the currency market.
ECONOMIC RECOVERY DAMPENS THE BOND MARKET
Bond returns continued to lag behind stock returns, finishing the period
with a 2.98% gain as measured by the Lehman Brothers Aggregate Bond Index. An
improving economy, generally a positive sign for stocks, is typically more
challenging for bonds because interest rates often rise as the economy
strengthens; and as interest rates rise, bond prices fall. Looking ahead,
increasing federal budget deficits are a major concern, since massive U.S.
Government borrowing could exert upward pressure on interest rates.
LOOKING AHEAD
- --------------------------------------------------------------------------------
Presidential election years have historically witnessed positive gains in
the stock market. Continuing economic growth, gradually rising employment rates,
low inflation and higher corporate profits could carry the stock market's
momentum well into this presidential year. The potential for increased interest
rates and rising inflation could propel large cap stocks into the forefront and
negatively affect bond returns in the near term. Despite the fact that consumer
confidence and business spending are rising, investors continue to seem
unconvinced about the economic recovery, which could affect the recovery's
sustainability.
During all market conditions, we believe successful investing includes
taking a balanced approach, maintaining a portfolio that is diversified among
stocks and bonds, and keeping a long-term perspective. The Wells Fargo Asset
Allocation Funds are designed with the expectation that they will help provide
investors with the diversification they need to reach their long-term investment
goals.
Thank you for choosing WELLS FARGO FUNDS. We appreciate your confidence in
us. Through each market cycle, we are committed to helping you meet your
financial needs. If you have any questions about your investment, 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 ASSET ALLOCATION FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO ASSET ALLOCATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Asset Allocation Fund (the Fund) seeks long-term total
return, consistent with reasonable risk.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS INCEPTION DATE
Galen G. Blomster, CFA; 11/13/86
Jeffrey P. Mellas
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 11.80%(1) for the six-month period
ended March 31, 2004, excluding sales charges, underperforming the S&P 500
Index(2), which returned 14.07%, but outperforming the Lehman Brothers 20+
Treasury Index(3), which returned 4.38%. The Fund's Class A shares distributed
$0.17 per share in dividend income and $0.27 per share in capital gains during
the period.
During the reporting period, the Fund's stock holdings significantly
outperformed its bond holdings. Bond yields decreased throughout the period,
with long-term U.S. Treasuries generating a 4.4% return.
The Fund's stock holdings seek to replicate those of the S&P 500 Index,
while its bond holdings seek to replicate those of the Lehman Brothers 20+
Treasury Index. The Tactical Asset Allocation (TAA) Model, which seeks to
enhance portfolio returns by shifting assets between stocks and bonds when a
compelling opportunity exists, maintained its 25% overweight position toward
stocks during the period.
To maintain the Fund's overweight position toward stocks, the Fund
employed a hedged futures overlay transaction, thus keeping the portfolio's
underlying assets near their long-term strategic allocation of 60% stocks and
40% bonds. Throughout the six-month period the Fund was at a maximum equity
overweight with an effective target allocation of 85% stocks and 15% bonds. With
stocks outperforming bonds, the Fund's 25% TAA overweight position toward stocks
added to its performance during the six-month period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The period began with optimism regarding the strength of the economy and
corporate earnings and ended with concerns over disappointing job gains, which
put a damper on the stock market. As the economy continued to experience a
moderate, jobless recovery with little threat of inflation, the Federal Reserve
Board, maintained low rates throughout the six-month period. In this environment
the Fund's stock holdings contributed more significantly to performance than its
bond holdings.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Since massive U.S. Government borrowing could exert upward pressure on
interest rates in the months ahead, the increasing federal budget deficits are a
major concern. Despite the rally in stock prices during the reporting period,
the TAA Model indicates that stocks are still attractive relative to bonds. As a
result, the Fund will remain at a maximum overweight position in stocks until
the relative valuation between stocks and bonds returns to a more normal
environment.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004 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 Asset Allocation Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class C shares of the Wells
Fargo Asset Allocation Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Class C shares of the Stagecoach Asset
Allocation Fund (the accounting survivor of a merger of the Stagecoach Asset
Allocation Fund and the Stagecoach Balanced 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 B shares for periods prior to January 1,
1995, reflects performance of the Class A shares of the Stagecoach Fund adjusted
to reflect Class B sales charges and expenses. Performance shown for Class C
shares for periods prior to April 1, 1998, reflects performance of the Class B
shares, adjusted for Class C sales charges and expenses. Performance shown for
the Institutional Class shares for periods prior to November 8, 1999 reflects
performance of the Class A shares of the predecessor fund, adjusted to reflect
Institutional Class expenses.
(2) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The Lehman Brothers 20+ Treasury Index is an unmanaged index composed of
securities in the U.S. Treasury Index with maturities of 20 years or greater.
You cannot invest directly in an index.
2
PERFORMANCE AT A GLANCE WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Asset Allocation Fund - Class A 5.36 20.83 0.45 8.93 11.80 28.21 1.64 9.58
Wells Fargo Asset Allocation Fund - Class B 6.38 22.19 0.50 8.84 11.38 27.19 0.89 8.84
Wells Fargo Asset Allocation Fund - Class C 10.39 26.35 0.88 8.84 11.39 27.35 0.88 8.84
Wells Fargo Asset Allocation Fund -
Institutional Class 11.93 28.50 1.74 9.63
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 11.68
Lehman Brothers 20+ Treasury Index 4.38 6.54 8.45 9.27
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST HOLDINGS(4,5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 6.13%, 11/15/27 2.80%
U.S. Treasury Bond, 6.25%, 5/15/30 2.32%
U.S. Treasury Bond, 5.38%, 2/15/31 2.08%
U.S. Treasury Bond, 6.00%, 2/15/26 1.72%
U.S. Treasury Bond, 6.88%, 8/15/25 1.52%
U.S. Treasury Bond, 6.13%, 8/15/29 1.43%
U.S. Treasury Bond, 6.50%, 11/15/26 1.43%
U.S. Treasury Bond, 5.50%, 8/15/28 1.39%
U.S. Treasury Bond, 7.63%, 2/15/25 1.38%
U.S. Treasury Bond, 7.50%, 11/15/24 1.38%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 7%
Consumer Staples 7%
Energy 3%
Financial Services 13%
Health Care 8%
Industrials 6%
Information Technology 10%
Materials 2%
U.S. Treasury Securities 40%
Telecommunications Services 2%
Utilities 2%
FUND CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.69
Average Coupon of Bond Portfolio 6.20%
Average Maturity of Bond Portfolio 23.64 years
Average Duration of Bond Portfolio 12.58 years
Portfolio Turnover 1%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
GROWTH OF $10,000 CHART(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Wells Fargo Lehman Brothers
Asset Allocation Asset Allocation 20+ Year
Fund Class A Fund Class I Treasury Index S&P 500 Index
---------------- ---------------- --------------- -------------
3/31/94 9425 10000 $10,000 $10,000
4/30/94 9398 9972 $9,876 $10,128
5/31/94 9435 10011 $9,795 $10,293
6/30/94 9271 9837 $9,693 $10,041
7/31/94 9570 10154 $10,052 $10,371
8/31/94 9725 10319 $9,953 $10,796
9/30/94 9443 10019 $9,613 $10,532
10/31/94 9519 10099 $9,582 $10,769
11/30/94 9416 9991 $9,650 $10,376
12/31/94 9562 10146 $9,809 $10,530
1/31/95 9808 10407 $10,075 $10,803
2/28/95 10117 10734 $10,358 $11,224
3/31/95 10297 10926 $10,456 $11,555
4/30/95 10523 11165 $10,645 $11,895
5/31/95 11067 11742 $11,522 $12,369
6/30/95 11238 11924 $11,662 $12,656
7/31/95 11384 12078 $11,455 $13,076
8/31/95 11460 12159 $11,729 $13,108
9/30/95 11758 12475 $11,961 $13,661
10/31/95 11817 12538 $12,320 $13,612
11/30/95 12152 12894 $12,641 $14,209
12/31/95 12353 13107 $13,005 $14,483
1/31/96 12573 13341 $12,990 $14,975
2/29/96 12508 13271 $12,300 $15,115
3/31/96 12535 13300 $12,035 $15,260
4/30/96 12546 13312 $11,821 $15,484
5/31/96 12654 13427 $11,758 $15,882
6/30/96 12796 13577 $12,021 $15,942
7/31/96 12512 13276 $12,021 $15,238
8/31/96 12500 13263 $11,849 $15,559
9/30/96 12988 13780 $12,194 $16,434
10/31/96 13434 14254 $12,705 $16,887
11/30/96 14150 15013 $13,159 $18,162
12/31/96 13793 14635 $12,815 $17,803
1/31/97 14072 14931 $12,700 $18,915
2/28/97 14105 14966 $12,703 $19,063
3/31/97 13629 14461 $12,354 $18,281
4/30/97 14159 15024 $12,668 $19,371
5/31/97 14636 15529 $12,814 $20,549
6/30/97 15055 15974 $13,082 $21,469
7/31/97 16112 17096 $13,921 $23,176
8/31/97 15400 16340 $13,491 $21,878
9/30/97 16032 17010 $13,891 $23,075
10/31/97 16011 16988 $14,402 $22,304
11/30/97 16531 17540 $14,628 $23,337
12/31/97 16829 17856 $14,888 $23,738
1/31/98 17080 18122 $15,200 $23,999
2/28/98 17893 18985 $15,079 $25,730
3/31/98 18546 19678 $15,109 $27,047
4/30/98 18672 19812 $15,160 $27,323
5/31/98 18583 19717 $15,480 $26,853
6/30/98 19274 20450 $15,888 $27,943
7/31/98 19080 20244 $15,798 $27,647
8/31/98 17230 18282 $16,570 $23,652
9/30/98 18204 19316 $17,181 $25,168
10/31/98 19276 20453 $16,888 $27,214
11/30/98 20228 21463 $17,044 $28,864
12/31/98 21134 22424 $17,005 $30,526
1/31/99 21873 23208 $17,166 $31,802
2/28/99 21084 22371 $16,249 $30,813
3/31/99 21684 23007 $16,177 $32,046
4/30/99 22311 23672 $16,190 $33,286
5/31/99 21849 23182 $15,933 $32,500
6/30/99 22461 23832 $15,738 $34,304
7/31/99 21964 23304 $15,648 $33,233
8/31/99 21840 23173 $15,575 $33,068
9/30/99 21528 22842 $15,688 $32,162
10/31/99 22303 23664 $15,689 $34,198
11/30/99 22495 23868 $15,570 $34,892
12/31/99 23139 24552 $15,294 $36,947
1/31/00 22652 24025 $15,561 $35,093
2/29/00 22817 24201 $16,113 $34,429
3/31/00 24469 25963 $16,716 $37,796
4/30/00 23921 25381 $16,558 $36,659
5/31/00 23519 24955 $16,475 $35,907
6/30/00 24073 25542 $16,832 $36,794
7/31/00 23984 25448 $17,166 $36,220
8/31/00 25107 26638 $17,584 $38,469
9/30/00 24102 25572 $17,284 $36,438
10/31/00 24161 25635 $17,572 $36,285
11/30/00 23132 24544 $18,168 $33,426
12/31/00 23367 24794 $18,593 $33,590
1/31/01 23958 25420 $18,591 $34,782
2/28/01 22390 23757 $18,919 $31,614
3/31/01 21287 22587 $18,767 $29,612
4/30/01 22310 23672 $18,178 $31,910
5/31/01 22461 23821 $18,209 $32,124
6/30/01 22130 23481 $18,397 $31,343
7/31/01 22238 23595 $19,123 $31,036
8/31/01 21449 22758 $19,582 $29,097
9/30/01 20361 21591 $19,627 $26,748
10/31/01 20981 22260 $20,794 $27,259
11/30/01 21699 23021 $19,692 $29,350
12/31/01 21687 23008 $19,267 $29,608
1/31/02 21524 22836 $19,537 $29,176
2/28/02 21291 22589 $19,752 $28,613
3/31/02 21556 22870 $18,839 $29,689
4/30/02 20984 22275 $19,612 $27,890
5/31/02 20879 22164 $19,614 $27,686
6/30/02 20173 21415 $19,961 $25,715
7/31/02 19139 20320 $20,593 $23,712
8/31/02 19339 20544 $21,669 $23,866
9/30/02 17673 18765 $22,629 $21,274
10/31/02 18877 20054 $21,785 $23,144
11/30/02 19798 21031 $21,608 $24,505
12/31/02 18885 20061 $22,544 $23,066
1/31/03 18445 19607 $22,474 $22,464
2/28/03 18232 19381 $23,184 $22,127
3/31/03 18346 19512 $22,797 $22,340
4/30/03 19622 20866 $23,089 $24,181
5/31/03 20623 21942 $24,569 $25,453
6/30/03 20755 22073 $24,065 $25,778
7/31/03 20707 22034 $21,586 $26,232
8/31/03 21102 22454 $22,057 $26,744
9/30/03 21039 22401 $23,268 $26,460
10/31/03 21928 23347 $22,549 $27,955
11/30/03 22085 23526 $22,680 $28,201
12/31/03 23068 24575 $22,949 $29,679
1/31/04 23472 25006 $23,411 $30,225
2/29/04 23779 25345 $23,919 $30,645
3/31/04 23522 25074 $24,285 $30,182
- --------------------------------------------------------------------------------
(4) The ten largest holdings are calculated based on the market value of the
securities divided by total market value of the Fund.
(5) Portfolio holdings and characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Asset Allocation Fund
Class A and Institutional Class shares for the most recent ten years with the
S&P 500 Index and the Lehman Brothers 20+ Treasury 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 5.75%.
3
WELLS FARGO ASSET ALLOCATION FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO GROWTH BALANCED FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Growth Balanced Fund (the Fund) seeks to provide a
combination of current income and capital appreciation by diversifying
investments in stocks and bonds.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
MASTER PORTFOLIO SUB-ADVISERS
Cadence Capital Management Peregrine Capital Management, Inc.
Galliard Capital Management, Inc. Smith Asset Management, L.P.
LSV Asset Management Systematic Financial Management, L.P.
Wells Capital Management Incorporated
FUND MANAGERS INCEPTION DATE
Collectively Managed 04/30/89
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 11.78%(1), excluding sales charges, for
the six-month period ended March 31, 2004, underperforming the S&P 500 Index(2)
which returned 14.07%, but outperforming the Lehman Brothers Aggregate Bond
Index(3), which returned 2.98%. The Fund's Class A shares distributed $0.58 per
share in dividend income and no capital gains during the period.
The Fund's stock holdings significantly outperformed its bond holdings
during the six-month period ended March 31, 2004. Bond yields decreased
throughout the period. The stock market gains were broad-based, with
international stocks leading the way during the reporting period, followed
closely by small cap and value stocks.
The Tactical Asset Allocation (TAA) Model used by the Fund seeks to
enhance portfolio returns by shifting assets between stocks and bonds when a
compelling opportunity exists. The TAA Model maintained a 15% overweight
position toward stocks throughout the six-month period. In maintaining the
overweight position toward stocks, the Fund employed a hedged futures overlay
transaction, thus keeping the Fund's underlying assets near their long-term
strategic allocation of 65% stocks and 35% bonds. With the futures overlay, the
Fund had an effective target allocation of 80% stocks and 20% bonds. With stocks
outperforming long-term U.S. Treasury bonds during the reporting period, the 15%
overweight position toward stocks increased the Fund's incremental return.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The period began with optimism regarding the strength of the economy and
corporate earnings and ended with concerns over disappointing job gains, which
put a damper on the stock market. As the economy continued to experience a
moderate, jobless recovery with little threat of inflation, the Federal Reserve
Board, maintained low rates throughout the period ended March 31, 2004. In this
environment the Fund's stock holdings contributed more significantly to
performance than its bond holdings.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
The TAA Model indicates that stocks continue to be attractive relative to
bonds at this time. As a result, the Fund will maintain its current maximum
overweight position in stocks until the relative valuation between stocks and
bonds returns to a more normal environment.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004 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 Growth Balanced Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway blended Fund that invests all of its assets in two or
more master portfolios of Master Trust in varying proportions. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for Class A, Class B, Class C and Institutional Class
shares of the Wells Fargo Growth Balanced Fund for periods prior to November 8,
1999, reflects performance of the Class A, Class B, Class C and Institutional
Class shares of the Norwest Advantage Growth Balanced 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 of the Fund prior to October 14, 1998, reflects the
performance of the Institutional Class shares of the Fund, adjusted to reflect
Class A sales charges. Performance shown for the Class B and Class C shares of
the Fund prior to October 1, 1998, reflects the performance of the Institutional
Class shares of the Fund, adjusted to reflect Class B and Class C sales charges
and expenses, respectively. Performance of the Institutional Class shares of the
Fund prior to November 11, 1994, reflects the performance of a collective
investment fund, adjusted to reflect Institutional Class expenses. Wells Fargo
Bank, N.A., formerly Norwest Bank Minnesota, N.A., managed the collective
investment fund with an investment objective and principal investment strategy
that were substantially similar to those of the Fund. The collective investment
fund's performance was adjusted to reflect the Fund's 1994 estimate of its
expense ratio for the first year of operations as a mutual fund, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (1940 Act) nor subject to certain investment
limitations, diversification requirements or other restrictions imposed by the
1940 Act or the Internal Revenue Code, which, if applicable, may have adversely
affected the Fund's performance results.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Credit Index and the Lehman Brothers Mortgage-Backed Securities Index
and includes Treasury issues, agency issues, corporate bond issues and
mortgage-backed securities. You cannot invest directly in an index.
(4) The ten largest holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by total market
value of the portfolio of investments of the Fund. See Notes to the Financial
Statements for a discussion of the Master Trust.
4
PERFORMANCE AT A GLANCE WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Growth Balanced Fund - Class A 5.36 22.62 2.55 9.51 11.78 30.10 3.77 10.16
Wells Fargo Growth Balanced Fund - Class B 6.36 24.11 2.64 9.35 11.36 29.11 3.00 9.35
Wells Fargo Growth Balanced Fund - Class C 10.38 28.08 3.02 9.37 11.38 29.08 3.02 9.37
Wells Fargo Growth Balanced Fund -
Institutional Class 11.94 30.41 4.00 10.30
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 11.68
Lehman Brothers Aggregate Bond Index 2.98 5.40 7.29 7.54
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST HOLDINGS(4,5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
U.S. Treasury Bonds, 5.38%, 2/15/31 1.15%
U.S. Treasury Bonds, 5.25%, 11/15/28 1.03%
Microsoft Corporation 1.03%
GNMA Series 2003-38 Class JC, 7.08%, 4/16/24 1.02%
Pfizer Incorporated 1.01%
American International Group Incorporated 0.95%
Intel Corporation 0.81%
U.S. Treasury Bonds, 5.25%, 2/15/29 0.81%
General Electric Company 0.80%
Cisco Systems Incorporated 0.75%
DIVERSIFIED BOND STYLE CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Average Credit Quality(6) AA
Average Maturity 9.17 years
Duration 5.14 years
DIVERSIFIED EQUITY STYLE CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.86
Dividend Yield 0.99%
Price to Earnings Ratio (trailing 12 months) 20.89x
Price to Book Ratio 3.17x
Median Market Cap ($B) $24.68
5-Year Earnings Growth (historic) 9.79%
Portfolio Turnover 42%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
GROWTH OF $10,000 CHART(7) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Wells Fargo Wells Fargo Lehman Brothers
Growth Balanced Growth Balanced Aggregate
Fund Class A Fund Class I S&P 500 Index Bond Index
--------------- --------------- ------------- ---------------
3/31/94 9425 10000 10000 10000
4/30/94 9484 10063 10128.2 9920
5/31/94 9527 10108 10293.3 9919.01
6/30/94 9325 9893 10041 9897.19
7/31/94 9559 10142 10370.8 10094.1
8/31/94 9869 10471 10796 10106.2
9/30/94 9727 10321 10532 9957.69
10/31/94 9808 10406 10768.6 9948.73
11/30/94 9618 10204 10376.5 9926.84
12/31/94 9688 10279 10530.3 9995.34
1/31/95 9770 10366 10803.2 10193.2
2/28/95 9997 10607 11223.8 10435.8
3/31/95 10198 10820 11554.5 10499.5
4/30/95 10377 11010 11894.5 10646.5
5/31/95 10670 11321 12369 11058.5
6/30/95 10920 11586 12656 11139.2
7/31/95 11246 11931 13075.5 11114.7
8/31/95 11294 11983 13108.3 11249.2
9/30/95 11625 12334 13661.1 11358.3
10/31/95 11527 12230 13612.4 11506
11/30/95 11826 12547 14209.3 11678.6
12/31/95 11941 12669 14483 11842.1
1/31/96 12193 12936 14975.5 11920.2
2/29/96 12288 13037 15114.7 11712.8
3/31/96 12377 13132 15259.8 11630.9
4/30/96 12589 13358 15484.2 11565.7
5/31/96 12780 13560 15882.1 11542.6
6/30/96 12786 13566 15942.5 11697.2
7/31/96 12377 13132 15237.8 11728.8
8/31/96 12546 13310 15559.3 11708.9
9/30/96 13044 13839 16433.8 11912.6
10/31/96 13135 13964 16887.3 12177.1
11/30/96 13763 14599 18162.3 12385.3
12/31/96 13642 14474 17802.7 12270.1
1/31/97 14097 14956 18915.4 12308.2
2/28/97 14097 14956 19062.9 12338.9
3/31/97 13654 14487 18281.3 12202
4/30/97 14109 14969 19370.9 12385
5/31/97 14802 15704 20548.6 12502.7
6/30/97 15334 16268 21469.2 12651.5
7/31/97 16206 17194 23176 12993
8/31/97 15566 16516 21878.2 12882.6
9/30/97 16266 17257 23074.9 13072
10/31/97 15949 16921 22304.2 13261.5
11/30/97 16237 17245 23336.9 13322.5
12/31/97 16477 17481 23738.3 13457.1
1/31/98 16695 17712 23999.4 13629.3
2/28/98 17437 18500 25729.8 13618.4
3/31/98 17956 19050 27047.1 13664.7
4/30/98 18154 19261 27323 13735.8
5/31/98 17969 19064 26853 13866.3
6/30/98 18430 19553 27943.3 13984.1
7/31/98 18205 19315 27647.1 14013.5
8/31/98 16579 17590 23652.1 14241.9
9/30/98 17264 18317 25168.2 14575.2
10/31/98 18284 19397 27214.3 14497.9
11/30/98 19240 20416 28863.5 14580.6
12/31/98 20163 21405 30526.1 14624.3
1/31/99 20672 21950 31802.1 14728.1
2/28/99 20118 21369 30813 14470.4
3/31/99 20621 21900 32045.5 14550
4/30/99 21150 22466 33285.7 14596.5
5/31/99 20876 22187 32500.2 14468.1
6/30/99 21628 22983 34303.9 14421.8
7/31/99 21309 22646 33233 14361.2
8/31/99 21137 22474 33068.5 14354
9/30/99 20819 22136 32162 14520.6
10/31/99 21494 22861 34197.9 14574.3
11/30/99 21971 23370 34892.1 14572.8
12/31/99 22606 24055 36947.3 14502.9
1/31/00 22237 23660 35092.5 14455
2/29/00 22551 24001 34429.3 14629.9
3/31/00 23721 25248 37796.4 14823
4/30/00 23386 24899 36658.8 14780
5/31/00 23071 24566 35907.3 14772.7
6/30/00 23652 25193 36794.2 15079.9
7/31/00 23625 25162 36220.2 15217.2
8/31/00 24446 26045 38469.5 15437.8
9/30/00 23912 25488 36438.3 15535.1
10/31/00 24090 25674 36285.2 15637.6
11/30/00 23680 25240 33426 15894.1
12/31/00 24323 25935 33589.8 16189.7
1/31/01 24648 26281 34782.2 16455.2
2/28/01 23502 25066 31613.5 16598.4
3/31/01 22608 24114 29612.4 16681.3
4/30/01 24057 25665 31910.3 16611.3
5/31/01 24131 25758 32124.1 16711
6/30/01 23746 25345 31343.5 16774.5
7/31/01 23650 25252 31036.3 17150.2
8/31/01 22992 24552 29096.6 17347.4
9/30/01 21573 23043 26748.5 17550.4
10/31/01 21987 23490 27259.4 17917.2
11/30/01 23266 24856 29350.2 17669.9
12/31/01 23557 25172 29608.4 17556.9
1/31/02 23270 24861 29176.2 17699.1
2/28/02 22922 24498 28613 17870.8
3/31/02 23696 25331 29688.9 17574.1
4/30/02 23209 24817 27889.8 17915
5/31/02 23054 24658 27686.2 18067.3
6/30/02 22250 23798 25714.9 18222.7
7/31/02 20579 22015 23711.7 18443.2
8/31/02 20548 21989 23865.8 18754.9
9/30/02 18769 20082 21274 19058.7
10/31/02 19883 21288 23144 18971
11/30/02 20827 22299 24504.9 18965.3
12/31/02 19807 21210 23066.4 19357.9
1/31/03 19305 20676 22464.4 19375.3
2/28/03 18967 20315 22127.4 19642.7
3/31/03 19070 20432 22339.8 19627
4/30/03 20318 21779 24180.7 19789.9
5/31/03 21205 22728 25452.6 20158
6/30/03 21480 23026 25778.3 20117.7
7/31/03 22108 23704 26232 19441.7
8/31/03 22422 24047 26743.6 19570
9/30/03 22194 23803 26460.1 20088.1
10/31/03 23317 25014 27955.1 19900.8
11/30/03 23513 25231 28201.1 19948.4
12/31/03 24409 26203 29678.8 20151.4
1/31/04 24705 26526 30224.9 20313.5
2/29/04 24969 26813 30645 20533.4
3/31/04 24809 26646 30182.3 20687.4
- --------------------------------------------------------------------------------
(5) Portfolio holdings and characteristics are subject to change.
(6) The average credit quality is compiled from ratings from Standards & 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.
(7) The chart compares the performance of the Wells Fargo Growth Balanced Fund
Class A and Institutional Class shares for the most recent ten years with the
S&P 500 Index and the Lehman Brothers Aggregate 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 5.75%.
5
WELLS FARGO ASSET ALLOCATION FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO INDEX ALLOCATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Index Allocation Fund (the Fund) seeks to earn a high
level of total return, consistent with the assumption of reasonable risk.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
FUND MANAGERS INCEPTION DATE
Galen G. Blomster, CFA; 04/07/88
Jeffrey P. Mellas
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 13.26%(1) for the period ended March
31, 2004, underperforming the S&P 500 Index(2), which returned 14.07%. The Fund,
which maintained its normal allocation of 100% stocks throughout the period,
also outperformed the Lehman Brothers 20+ Treasury Index(3), which returned
4.38%. Generally, stocks significantly outperformed bonds during the six-month
reporting period.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Investors seemed to be optimistic regarding the strength of the economy
and corporate earnings at the beginning of the reporting period, but concerns
over disappointing job gains put a damper on the stock market late in the period
ended March 31, 2004. The Fund's performance, however, was buoyed by the strong
gains in the S&P 500 Index.
The best-performing sectors within the S&P 500 Index tended to be those
that would typically benefit from accelerating economic growth. During the final
three months of the period, the more stable, "defensive" sectors of the stock
market led the way in performance, a pattern that may continue if interest rates
begin a more sustained rise later this year. The consumer staples sector turned
in strong performance, while higher oil prices and lower interest rates provided
good support to energy and financial services stocks, respectively. Broadly
speaking, small cap stocks outperformed mid cap stocks, which, in turn,
outperformed the S&P 500 Index.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
Earnings of stocks within the S&P 500 Index may continue to grow
throughout 2004, as economic fundamentals are falling into place for a more
sustained stock market rally in the coming months. Any future rise in interest
rates this year may be gradual by historic standards, reflecting solid but
unspectacular growth and only a gradual turn toward higher inflation.
The Fund employs the Tactical Asset Allocation (TAA) Model, which seeks to
enhance portfolio returns by shifting assets between stocks and bonds when a
compelling opportunity exists. With the decline in bond yields, the TAA Model
indicates that stocks are still attractive relative to bonds at this time. As a
result, the Fund will remain fully invested in stocks for the foreseeable
future.
The views expressed are as of March 31, 2004 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 Index Allocation Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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 Class C shares of the Wells
Fargo Index Allocation Fund for periods prior to November 8, 1999, reflects
performance of the Class A, Class B and Class C shares of the Stagecoach Index
Allocation 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 Index Allocation Fund (the accounting survivor of a merger of
the Stagecoach and Overland Funds on December 12, 1997).Performance shown for
the Class B shares reflects performance of the Class D shares of the Overland
Fund. Performance shown for the Class C shares reflects performance of the Class
D shares of the Overland Fund adjusted to reflect sales charges and expenses.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The Lehman Brothers 20+ Treasury Index is an unmanaged index composed of
securities in the U.S. Treasury Index with maturities of 20 years or greater.
You cannot invest directly in an index.
6
PERFORMANCE AT A GLANCE WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Index Allocation Fund - Class A 6.73 25.60 (3.45) 8.49 13.26 33.27 (2.30) 9.14
Wells Fargo Index Allocation Fund - Class B 7.86 27.27 (3.50) 8.31 12.86 32.27 (3.04) 8.31
Wells Fargo Index Allocation Fund - Class C 11.86 31.25 (3.04) 8.32 12.86 32.25 (3.04) 8.32
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 11.68
Lehman Brothers 20+ Treasury Index 4.38 6.54 8.45 9.27
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. EFFECTIVE FEBRUARY 1, 2004, THE 1.00%
FRONT-END SALES CHARGE FOR CLASS C SHARES WAS ELIMINATED. PERFORMANCE INCLUDING
SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD.
TEN LARGEST HOLDINGS(4,5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
General Electric Company 2.74%
Exxon Mobil Corporation 2.40%
Microsoft Corporation 2.37%
Pfizer Incorporated 2.35%
Citigroup Incorporated 2.34%
Wal-Mart Stores Incorporated 2.27%
American International Group Incorporated 1.64%
Intel Corporation 1.55%
Cisco Systems Incorporated 1.42%
International Business Machines Corporation 1.37%
SECTOR DISTRIBUTION(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 11%
Consumer Staples 11%
Energy 6%
Financial Services 21%
Health Care 13%
Industrials 11%
Information Technology 17%
Materials 3%
Telecommunications Services 4%
Utilities 3%
FUND CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 1.00
Price to Earnings Ratio (trailing 12 months) 19.5x
Price to Book Ratio 2.85x
Median Market Cap.($B) $ 7.93
5 Year Earnings Growth (historic) 12.24%
Portfolio Turnover 1%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
GROWTH OF $10,000 CHART(6) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Index Lehman Brothers
Allocation Fund 20+ Year Treasury
Class A Index S&P 500 Index
----------------- ----------------- -------------
3/31/94 9423 10000 10000
4/30/94 9481 9876.15 10128.2
5/31/94 9571 9794.52 10293.3
6/30/94 9363 9693.01 10041
7/31/94 9654 10051.6 10370.8
8/31/94 9936 9952.73 10796
9/30/94 9668 9612.87 10532
10/31/94 9760 9581.51 10768.6
11/30/94 9567 9649.6 10376.5
12/31/94 9710 9808.76 10530.3
1/31/95 9947 10075.5 10803.2
2/28/95 10283 10358.4 11223.8
3/31/95 10511 10456.4 11554.5
4/30/95 10768 10644.9 11894.5
5/31/95 11263 11522.3 12369
6/30/95 11521 11661.5 12656
7/31/95 11881 11454.6 13075.5
8/31/95 11899 11729.1 13108.3
9/30/95 12378 11960.8 13661.1
10/31/95 12323 12320.1 13612.4
11/30/95 12841 12640.6 14209.3
12/31/95 13080 13004.9 14483
1/31/96 13480 12989.5 14975.5
2/29/96 13584 12300.4 15114.7
3/31/96 13703 12034.6 15259.8
4/30/96 13837 11821.3 15484.2
5/31/96 14027 11758.3 15882.1
6/30/96 14127 12021 15942.5
7/31/96 13687 12020.6 15237.8
8/31/96 13773 11848.6 15559.3
9/30/96 14366 12194.2 16433.8
10/31/96 14800 12705 16887.3
11/30/96 15658 13158.5 18162.3
12/31/96 15310 12814.9 17802.7
1/31/97 15988 12700.2 18915.4
2/28/97 16054 12702.8 19062.9
3/31/97 15489 12353.6 18281.3
4/30/97 16150 12667.7 19370.9
5/31/97 16788 12814.3 20548.6
6/30/97 17379 13082.3 21469.2
7/31/97 18642 13921.1 23176
8/31/97 17722 13491.3 21878.2
9/30/97 18549 13891.3 23074.9
10/31/97 18081 14402.3 22304.2
11/30/97 18860 14628.5 23336.9
12/31/97 19164 14888 23738.3
1/31/98 19350 15200.4 23999.4
2/28/98 20697 15079.4 25729.8
3/31/98 21700 15109.1 27047.1
4/30/98 21885 15159.8 27323
5/31/98 21490 15480.4 26853
6/30/98 22331 15887.9 27943.3
7/31/98 22084 15797.7 27647.1
8/31/98 18892 16570.1 23652.1
9/30/98 20071 17180.6 25168.2
10/31/98 21693 16888.3 27214.3
11/30/98 22980 17044.1 28863.5
12/31/98 24255 17004.6 30526.1
1/31/99 25230 17166.3 31802.1
2/28/99 24435 16248.8 30813
3/31/99 25379 16177 32045.5
4/30/99 26342 16190.4 33285.7
5/31/99 25700 15933.1 32500.2
6/30/99 27083 15738 34303.9
7/31/99 26223 15648.3 33233
8/31/99 26069 15574.9 33068.5
9/30/99 25334 15687.6 32162
10/31/99 26914 15689.2 34197.9
11/30/99 27428 15569.9 34892.1
12/31/99 28999 15294.5 36947.3
1/31/00 27605 15560.7 35092.5
2/29/00 27154 16113.1 34429.3
3/31/00 29782 16716.3 37796.4
4/30/00 28866 16557.5 36658.8
5/31/00 28242 16474.8 35907.3
6/30/00 28906 16832.3 36794.2
7/31/00 28428 17165.5 36220.2
8/31/00 30153 17584.4 38469.5
9/30/00 28534 17283.7 36438.3
10/31/00 28402 17572.3 36285.2
11/30/00 26145 18168 33426
12/31/00 26259 18593.2 33589.8
1/31/01 27159 18591.3 34782.2
2/28/01 24665 18918.5 31613.5
3/31/01 23100 18767.2 29612.4
4/30/01 24857 18177.9 31910.3
5/31/01 24989 18208.8 32124.1
6/30/01 24355 18396.7 31343.5
7/31/01 24089 19122.7 31036.3
8/31/01 22554 19581.6 29096.6
9/30/01 20709 19626.7 26748.5
10/31/01 21078 20794.5 27259.4
11/30/01 22672 19692.3 29350.2
12/31/01 22846 19267 29608.4
1/31/02 22493 19536.7 29176.2
2/28/02 22046 19751.6 28613
3/31/02 22846 18839.1 29688.9
4/30/02 21431 19612.4 27889.8
5/31/02 21246 19613.8 27686.2
6/30/02 19708 19960.7 25714.9
7/31/02 18139 20592.8 23711.7
8/31/02 18231 21668.7 23865.8
9/30/02 16246 22628.6 21274
10/31/02 17662 21784.5 23144
11/30/02 18585 21608.1 24504.9
12/31/02 17488 22543.7 23066.4
1/31/03 17072 22473.8 22464.4
2/28/03 16810 23184 22127.4
3/31/03 16953 22796.8 22339.8
4/30/03 18327 23088.6 24180.7
5/31/03 19269 24568.6 25452.6
6/30/03 19500 24065 25778.3
7/31/03 19825 21586.3 26232
8/31/03 20180 22056.8 26743.6
9/30/03 19948 23267.8 26460.1
1/31/04 22670 23410.8 30224.9
2/29/04 22963 23918.8 30645
3/31/04 22593 24284.7 30182.3
- --------------------------------------------------------------------------------
(4) The ten largest holdings are calculated based on the market value of the
securities divided by the total market value of the Fund.
(5) Portfolio holdings and characteristics are subject to change.
(6) The chart compares the performance of the Wells Fargo Index Allocation Fund
Class A shares for the most recent ten years with the S&P 500 Index and the
Lehman Brothers 20+ Treasury Index. The chart assumes a hypothetical $10,000
investment in Class A shares and reflects all operating expenses while assuming
the maximum initial sales charges of 5.75%.
7
WELLS FARGO ASSET ALLOCATION FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO MODERATE BALANCED FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Moderate Balanced Fund (the Fund) seeks to provide a combination
of current income and capital appreciation by diversifying investments in
stocks, bonds and other fixed-income securities.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
MASTER PORTFOLIO SUB-ADVISERS
Cadence Capital Management Peregrine Capital Management, Inc.
Galliard Capital Management, Inc. Smith Asset Management, L.P.
LSV Asset Management Systematic Financial Management, L.P.
Wells Capital Management Incorporated
FUND MANAGERS INCEPTION DATE
Collectively Managed 04/30/89
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Institutional Class returned 8.22%(1) for the six-month period
ended March 31, 2004, outperforming the Lehman Brothers Aggregate Bond Index(2),
which returned 2.98%, but underperforming the S&P 500 Index(3), which returned
14.07%. The Fund distributed $0.64 per share in dividend income and $0.21 per
share in capital gains during the period.
During the six-month period ended March 31, 2004, the Fund's stock
holdings significantly outperformed its bond holdings. Bond yields trended down
throughout the period. While the stock market gains were broad-based,
international stocks led the way during the period, followed closely by small
cap and value stocks.
The Tactical Asset Allocation (TAA) Model, which seeks to enhance
portfolio returns by shifting assets between stocks and bonds when a compelling
opportunity exists, maintained a 10% overweight position toward stocks
throughout the reporting period. In maintaining the overweight position toward
stocks, the Fund employed a hedged futures overlay transaction, keeping the
portfolio's underlying assets near the Fund's long-term strategic allocation of
40% stocks and 60% bonds. With the futures overlay, the Fund has an effective
target allocation of 50% stocks and 50% bonds. With stocks outperforming
long-term U.S. Treasury bonds during the six-month period, the 10% TAA
overweight toward stocks added value to the Fund's incremental returns.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
The period began with optimism regarding the strength of the economy and
corporate earnings and ended with concerns over disappointing job gains, which
put a damper on the stock market late in the period. As the economy continued to
experience a moderate, jobless recovery with little threat of inflation, the
Federal Reserve Board maintained low interest rates throughout the period ended
March 31, 2004. In this environment the Fund's bond holdings contributed less
significantly to performance than its stock holdings.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
At this time the TAA Model indicates that stocks continue to be attractive
relative to bonds. As a result, the Fund will maintain an overweighting in
stocks until the relative valuation between stocks and bonds returns to a more
normal environment.
The views expressed are as of March 31, 2004 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 Moderate Balanced Fund.
(1) The Fund's Adviser has committed through January 31, 2005 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.
The Fund is a gateway blended Fund that invests all of its assets in two or
more master portfolios of Master Trust in varying proportions. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests. Performance shown for
Class A, Class B and Class C shares of the Wells Fargo Moderate Balanced Fund
for periods prior to January 30, 2004 reflects the performance of the
Institutional Class shares of the Fund, adjusted to reflect applicable sales
charges and expenses. Performance shown for the Institutional Class shares of
the Wells Fargo Moderate Balanced Fund for periods prior to November 8, 1999,
reflects performance of the Institutional Class shares of the Norwest Advantage
Moderate Balanced 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 Institutional Class shares of the
Fund prior to November 11, 1994, reflects the performance of a collective
investment fund, adjusted to reflect Institutional Class expenses. Wells Fargo
Bank Minnesota, N.A., formerly Norwest Bank Minnesota, N.A., managed the
collective investment fund with an investment objective and principal investment
strategy that were substantially similar to those of the Fund. The collective
investment fund's performance was adjusted to reflect the Fund's 1994 estimate
of its expense ratio for the first year of operations as a mutual fund,
including any applicable sales load (without giving effect to any fee waivers or
expense reimbursements). The collective investment fund was not registered under
the Investment Company Act of 1940 (1940 Act) nor subject to certain investment
limitations, diversification requirements or other restrictions imposed by the
1940 Act or the Internal Revenue Code, which, if applicable, may have adversely
affected the Fund's performance results.
(2) The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Credit Index and the Lehman Brothers Mortgage-Backed Securities Index
and includes Treasury issues, agency issues, corporate bond issues and
mortgage-backed securities. You cannot invest directly in an index.
(3) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(4) The ten largest holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by total market
value of the portfolio of investments of the Fund. See Notes to the Financial
Statements for a discussion of the Master Trust.
(5) Portfolio holdings and characteristics are subject to change.
8
PERFORMANCE AT A GLANCE WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------------ ------------------------------------
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year
-------- ------ ------ ------- -------- ------ ------ -------
Wells Fargo Moderate Balanced Fund - Class A 1.87 12.93 3.42 7.94 8.08 19.82 4.65 8.58
Wells Fargo Moderate Balanced Fund - Class B 2.66 13.91 3.52 7.77 7.66 18.91 3.87 7.77
Wells Fargo Moderate Balanced Fund - Class C 6.66 17.91 3.87 7.77 7.66 18.91 3.87 7.77
Wells Fargo Moderate Balanced Fund -
Institutional Class 8.22 20.12 4.92 8.85
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 11.68
Lehman Brothers Aggregate Bond Index 2.98 5.40 7.29 7.54
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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.
PERFORMANCE SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE
REFLECTED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA
QUOTED. CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGE (CDSC) FOR CLASS B SHARES IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CDSC IS 1.00%. PERFORMANCE INCLUDING SALES CHARGES ASSUMES
THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING TIME PERIOD. INSTITUTIONAL CLASS
SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST HOLDINGS(4,5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
U.S. Treasury Bonds, 5.38%, 2/15/31 1.60%
U.S. Treasury Bonds, 5.25%, 11/15/28 1.43%
GNMA Series 2003-38 Class JC, 7.08%, 4/16/24 1.41%
U.S. Treasury Bonds, 5.25%, 2.15/29 1.12%
U.S. Treasury Bonds, 6.13%, 8/15/29 0.98%
FHLB, 1.52%, 7/14/05 0.92%
U.S. Treasury Bonds, 6.25%, 5/15/30 0.89%
U.S. Treasury Bonds, 7.25%, 8/15/22 0.88%
FHLB, 1.55%, 7/14/05 0.88%
FFCB, 2.09%, 1/30/06 0.76%
DIVERSIFIED BOND STYLE CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Average Credit Quality(6) AA
Average Maturity 9.17 years
Duration 5.14 years
DIVERSIFIED EQUITY STYLE CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.86
Dividend Yield 0.61%
Price to Earnings Ratio 20.89x
(trailing 12 months)
Price to Book Ratio 3.17x
Median Market Cap ($B) 24.68
5-Year Earnings Growth (historic) 9.79%
Portfolio Turnover 56%
**A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA IS
1.00 BY DEFINITION.
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
GROWTH OF $10,000 CHART(7) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Wells Fargo Wells Fargo Lehman Brothers
Moderate Balanced Moderate Balanced Aggregate
Fund Class A Fund Class I S&P 500 Index Bond Index
----------------- ----------------- ------------- ---------------
3/31/94 9425 10000 10000 10000
4/30/94 9462 10041 10128.2 9920
5/31/94 9488 10071 10293.3 9919.01
6/30/94 9358 9935 10041 9897.19
7/31/94 9538 10129 10370.8 10094.1
8/31/94 9747 10353 10796 10106.2
9/30/94 9649 10250 10532 9957.69
10/31/94 9697 10303 10768.6 9948.73
11/30/94 9568 10169 10376.5 9926.84
12/31/94 9644 10252 10530.3 9995.34
1/31/95 9721 10335 10803.2 10193.2
2/28/95 9898 10526 11223.8 10435.8
3/31/95 10041 10680 11554.5 10499.5
4/30/95 10178 10829 11894.5 10646.5
5/31/95 10416 11084 12369 11058.5
6/30/95 10604 11286 12656 11139.2
7/31/95 10820 11518 13075.5 11114.7
8/31/95 10868 11572 13108.3 11249.2
9/30/95 11083 11803 13661.1 11358.3
10/31/95 11069 11791 13612.4 11506
11/30/95 11279 12017 14209.3 11678.6
12/31/95 11387 12134 14483 11842.1
1/31/96 11542 12302 14975.5 11920.2
2/29/96 11534 12296 15114.7 11712.8
3/31/96 11584 12352 15259.8 11630.9
4/30/96 11710 12489 15484.2 11565.7
5/31/96 11830 12620 15882.1 11542.6
6/30/96 11862 12657 15942.5 11697.2
7/31/96 11627 12408 15237.8 11728.8
8/31/96 11735 12526 15559.3 11708.9
9/30/96 12065 12881 16433.8 11912.6
10/31/96 12185 13012 16887.3 12177.1
11/30/96 12579 13435 18162.3 12385.3
12/31/96 12506 13360 17802.7 12270.1
1/31/97 12785 13662 18915.4 12308.2
2/28/97 12795 13675 19062.9 12338.9
3/31/97 12517 13380 18281.3 12202
4/30/97 12820 13707 19370.9 12385
5/31/97 13222 14140 20548.6 12502.7
6/30/97 13550 14493 21469.2 12651.5
7/31/97 14159 15148 23176 12993
8/31/97 13746 14710 21878.2 12882.6
9/30/97 14208 15207 23074.9 13072
10/31/97 14107 15102 22304.2 13261.5
11/30/97 14294 15306 23336.9 13322.5
12/31/97 14471 15498 23738.3 13457.1
1/31/98 14656 15700 23999.4 13629.3
2/28/98 15070 16147 25729.8 13618.4
3/31/98 15371 16471 27047.1 13664.7
4/30/98 15502 16615 27323 13735.8
5/31/98 15438 16550 26853 13866.3
6/30/98 15746 16881 27943.3 13984.1
7/31/98 15622 16751 27647.1 14013.5
8/31/98 14819 15894 23652.1 14241.9
9/30/98 15306 16420 25168.2 14575.2
10/31/98 15800 16953 27214.3 14497.9
11/30/98 16320 17515 28863.5 14580.6
12/31/98 16856 18093 30526.1 14624.3
1/31/99 17174 18439 31802.1 14728.1
2/28/99 16784 18024 30813 14470.4
3/31/99 17095 18362 32045.5 14550
4/30/99 17421 18715 33285.7 14596.5
5/31/99 17253 18539 32500.2 14468.1
6/30/99 17614 18930 34303.9 14421.8
7/31/99 17460 18769 33233 14361.2
8/31/99 17377 18685 33068.5 14354
9/30/99 17267 18570 32162 14520.6
10/31/99 17606 18938 34197.9 14574.3
11/30/99 17852 19207 34892.1 14572.8
12/31/99 18163 19546 36947.3 14502.9
1/31/00 17988 19362 35092.5 14455
2/29/00 18241 19638 34429.3 14629.9
3/31/00 18922 20375 37796.4 14823
4/30/00 18732 20174 36658.8 14780
5/31/00 18572 20007 35907.3 14772.7
6/30/00 18980 20450 36794.2 15079.9
7/31/00 19038 20517 36220.2 15217.2
8/31/00 19516 21037 38469.5 15437.8
9/30/00 19287 20794 36438.3 15535.1
10/31/00 19430 20953 36285.2 15637.6
11/30/00 19388 20911 33426 15894.1
12/31/00 19842 21406 33589.8 16189.7
1/31/01 20059 21644 34782.2 16455.2
2/28/01 19563 21113 31613.5 16598.4
3/31/01 19152 20675 29612.4 16681.3
4/30/01 19885 21470 31910.3 16611.3
5/31/01 19966 21562 32124.1 16711
6/30/01 19784 21369 31343.5 16774.5
7/31/01 19848 21443 31036.3 17150.2
8/31/01 19556 21132 29096.6 17347.4
9/30/01 18858 20382 26748.5 17550.4
10/31/01 19175 20729 27259.4 17917.2
11/30/01 19780 21388 29350.2 17669.9
12/31/01 19934 21559 29608.4 17556.9
1/31/02 19803 21421 29176.2 17699.1
2/28/02 19654 21265 28613 17870.8
3/31/02 19985 21627 29688.9 17574.1
4/30/02 19818 21451 27889.8 17915
5/31/02 19768 21402 27686.2 18067.3
6/30/02 19384 20990 25714.9 18222.7
7/31/02 18529 20068 23711.7 18443.2
8/31/02 18543 20088 23865.8 18754.9
9/30/02 17616 19088 21274 19058.7
10/31/02 18282 19814 23144 18971
11/30/02 18812 20392 24504.9 18965.3
12/31/02 18299 19840 23066.4 19357.9
1/31/03 18012 19533 22464.4 19375.3
2/28/03 17867 19380 22127.4 19642.7
3/31/03 17911 19431 22339.8 19627
4/30/03 18680 20270 24180.7 19789.9
5/31/03 19279 20924 25452.6 20158
6/30/03 19426 21088 25778.3 20117.7
7/31/03 19695 21384 26232 19441.7
8/31/03 19898 21609 26743.6 19570
9/30/03 19856 21569 26460.1 20088.1
10/31/03 20464 22233 27955.1 19900.8
11/30/03 20582 22366 28201.1 19948.4
12/31/03 21113 22948 29678.8 20151.4
1/31/04 21314 23171 30224.9 20313.5
2/29/04 21509 23384 30645 20533.4
3/31/04 21461 23341 30182.3 20687.4
- --------------------------------------------------------------------------------
(6) The average credit quality is compiled from ratings from Standards & 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.
(7) The chart compares the performance of the Wells Fargo Moderate Balanced Fund
Class A shares and Institutional Class shares for the most recent ten years with
the S&P 500 Index and the Lehman Brothers Aggregate 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 5.75%.
9
WELLS FARGO ASSET ALLOCATION FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO STRATEGIC GROWTH ALLOCATION FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Strategic Growth Allocation Fund (the Fund) seeks to
provide capital appreciation with a secondary emphasis on current income.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
MASTER PORTFOLIO SUB-ADVISERS
Cadence Capital Management Smith Asset Management, L.P.
Galliard Capital Management, Inc. Systematic Financial Management, L.P.
LSV Asset Management Wells Capital Management Incorporated
Peregrine Capital Management, Inc.
FUND MANAGERS INCEPTION DATE
Collectively Managed 12/02/97
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund returned 13.70%(1) for the six-month period ended March 31, 2004,
underperforming the S&P 500 Index(2), which returned 14.07%, but outperforming
the Lehman Brothers Aggregate Bond Index(3), which returned 2.98%. The Fund
distributed $0.16 per share in dividend income and no capital gains during the
period.
During the six-month period ended March 31, 2004, the Fund's stock
holdings significantly outperformed its bond holdings. While the equity market
gains were broad-based, international stocks led the way during the period,
followed closely by small cap and value stocks. Bond yields decreased throughout
the period.
The Tactical Asset Allocation (TAA) Model, which seeks to enhance the
Fund's returns by shifting assets between stocks and bonds when a compelling
opportunity exists, maintained a 15% overweight toward stocks throughout the
period. In maintaining the overweight position toward stocks, the Fund employed
a hedged futures overlay transaction, keeping the portfolio's underlying assets
near the Fund's long-term strategic allocation of 80% stocks and 20% bonds. With
the futures overlay, the Fund had an effective target allocation of 95% stocks
and 5% bonds. With stocks outperforming long-term U.S. Treasury bonds during the
six-month period, the 15% TAA overweight position toward stocks contributed to
the Fund's incremental returns.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
Although the strength of the economy and corporate earnings contributed to
a sense of optimism at the beginning of the period, concerns over disappointing
job gains put a damper on the stock market late in the period ended March 31,
2004. The Federal Reserve Board maintained low rates throughout the reporting
period, as the economy continued to experience a moderate, jobless recovery,
with little threat of inflation. In this environment the Fund's stock holdings
contributed more significantly to performance than its bond holdings.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
At this time the TAA Model indicates that stocks continue to be attractive
relative to bonds. As a result, the Fund will maintain an overweight position
towards stocks until the relative valuation between stocks and bonds returns to
a more normal environment.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Strategic Growth Allocation Fund.
(1) The Fund's Adviser has committed through January 31, 2005, 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.
The Fund is a gateway blended Fund that invests all of its assets in two or
more master portfolios of Master Trust in varying proportions. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for Institutional Class shares of the Wells Fargo
Strategic Growth Allocation Fund for periods prior to November 8, 1999, reflects
performance of the Institutional Class shares of the Norwest Advantage
Aggressive Balanced-Equity 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.
(2) The S&P 500 Index is an unmanaged index of 500 widely held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(3) The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Credit Index and the Lehman Brothers Mortgage-Backed Securities Index
and includes Treasury issues, agency issues, corporate bond issues and
mortgage-backed securities. You cannot invest directly in an index.
10
PERFORMANCE AT A GLANCE WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Excluding Sales Charge
------------------------------------
Life of
6-Month* 1-Year 5-Year Fund
-------- ------ ------ -------
Wells Fargo Strategic Growth Allocation
Fund - Institutional Class 13.70 35.14 2.92 6.40
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 4.14
Lehman Brothers Aggregate Bond Index 2.98 5.40 7.29 7.20
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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 MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST HOLDINGS(4,5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Microsoft Corporation 1.26%
Pfizer Incorporated 1.24%
American International Group Incorporated 1.17%
Intel Corporation 1.00%
General Electric Company 0.98%
Cisco Systems Incorporated 0.93%
Exxon Mobil Corporation 0.92%
Citigroup Incorporated 0.90%
JP Morgan Chase & Company 0.78%
eBay Incorporated 0.78%
DIVERSIFIED BOND STYLE CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Average Credit Quality(6) AA
Average Maturity 9.17 years
Duration 5.14 years
DIVERSIFIED EQUITY STYLE CHARACTERISTICS(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.31
Dividend Yield 1.21%
Price to Earnings Ratio 20.89x
(trailing 12 months)
Price to Book Ratio 3.17x
Median Market Cap ($B) $24.68
5-Year Earnings Growth (historic) 9.79%
Portfolio Turnover 32%
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK BETA
IS 1.00 BY DEFINITION.
GROWTH OF $10,000 CHART(7) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Fund
Strategic Growth Lehman Brothers
Allocation - Aggregate
Class I S&P 500 Index Bond Index
----------------- ------------- ----------------
2/12/1997 10000 10000 10000
12/31/97 10013.5 10172 10101
1/31/98 10143.7 10283.9 10230.3
2/28/98 10704.4 11025.4 10222.1
3/31/98 11084.9 11589.9 10256.9
4/30/98 11225.1 11708.1 10310.2
5/31/98 11054.9 11506.7 10408.1
6/30/98 11375.3 11973.9 10496.6
7/31/98 11205.1 11847 10518.7
8/31/98 9923.37 10135.1 10690.1
9/30/98 10364 10784.7 10940.3
10/31/98 11135 11661.5 10882.3
11/30/98 11765.9 12368.2 10944.3
12/31/98 12437.6 13080.6 10977.1
1/31/99 12790.6 13627.4 11055.1
2/28/99 12437.6 13203.6 10861.6
3/31/99 12820.9 13731.7 10921.4
4/30/99 13234.5 14263.1 10956.3
5/31/99 13042.8 13926.5 10859.9
6/30/99 13607.7 14699.4 10825.1
7/31/99 13375.7 14240.5 10779.7
8/31/99 13254.7 14170 10774.3
9/30/99 13002.5 13781.6 10899.3
10/31/99 13506.8 14654 10939.6
11/30/99 13849.8 14951.5 10938.5
12/31/99 14377.2 15832.1 10886
1/31/00 14041 15037.4 10850.1
2/29/00 14204 14753.1 10981.4
3/31/00 15080.3 16196 11126.3
4/30/00 14835.8 15708.5 11094
5/31/00 14591.2 15386.5 11088.5
6/30/00 14988.6 15766.5 11319.1
7/31/00 14896.9 15520.6 11422.1
8/31/00 15498.1 16484.4 11587.8
9/30/00 15059.9 15614 11660.8
10/31/00 15161.8 15548.5 11737.7
11/30/00 14682.9 14323.2 11930.2
12/31/00 15106 14393.4 12152.1
1/31/01 15329.8 14904.4 12351.4
2/28/01 14402.9 13546.6 12458.9
3/31/01 13699.8 12689.1 12521.2
4/30/01 14786.5 13673.8 12468.6
5/31/01 14818.4 13765.4 12543.4
6/30/01 14520.1 13430.9 12591.1
7/31/01 14402.9 13299.3 12873.1
8/31/01 13859.6 12468.1 13021.1
9/30/01 12805 11461.9 13173.5
10/31/01 13060.6 11680.8 13448.8
11/30/01 14008.8 12576.7 13263.2
12/31/01 14224.1 12687.4 13178.3
1/31/02 14007.6 12502.2 13285.1
2/28/02 13747.8 12260.9 13413.9
3/31/02 14343.1 12721.9 13191.3
4/30/02 13942.6 11950.9 13447.2
5/31/02 13812.7 11863.7 13561.5
6/30/02 13195.7 11019 13678.1
7/31/02 12005 10160.6 13843.6
8/31/02 11983.3 10226.7 14077.6
9/30/02 10727.6 9116.05 14305.6
10/31/02 11539 9917.35 14239.8
11/30/02 12167 10500.5 14235.5
12/31/02 11459 9884.11 14530.2
1/31/03 11118 9626.13 14543.3
2/28/03 10877 9481.74 14744
3/31/03 10953 9572.76 14732.2
4/30/03 11789 10361.6 14854.5
5/31/03 12371 10906.6 15130.8
6/30/03 12558 11046.2 15100.5
7/31/03 12997 11240.6 14593.1
8/31/03 13206 11459.8 14689.5
9/30/03 13019 11338.3 15078.3
10/31/03 13811 11978.9 14937.7
11/30/03 13942 12084.3 14973.5
12/31/03 14559 12717.6 15125.8
1/31/04 14759 12951.6 15247.5
2/29/04 14937 13131.6 15412.5
3/31/04 14803 12933.3 15528.1
- --------------------------------------------------------------------------------
(4) The ten largest holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by total market
value of the portfolio of investments of the Fund. See Notes to the Financial
Statements for a discussion of the Master Trust.
(5) Portfolio holdings and characteristics are subject to change.
(6) The average credit quality is compiled from ratings from Standards & 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.
(7) The chart compares the performance of the Wells Fargo Strategic Growth
Allocation Fund Institutional Class shares for the life of the Fund with the S&P
500 Index and the Lehman Brothers Aggregate Bond Index. The chart assumes a
hypothetical $10,000 investment in Institutional Class shares and reflects all
operating expenses.
11
WELLS FARGO ASSET ALLOCATION FUNDS PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO STRATEGIC INCOME FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Strategic Income Fund (the Fund) seeks to provide a combination
of current income and capital appreciation by diversifying investments in bonds,
other fixed-income investments and stocks.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
MASTER PORTFOLIO SUB-ADVISERS
Cadence Capital Management Smith Asset Management, L.P.
Galliard Capital Management, Inc. Systematic Financial Management, L.P.
LSV Asset Management Wells Capital Management Incorporated
Peregrine Capital Management, Inc.
FUND MANAGERS INCEPTION DATE
Collectively Managed 04/30/89
HOW DID THE FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund returned 5.17%(1) for the six-month period ended March 31, 2004,
outperforming the Lehman Brothers Aggregate Bond Index(2), which returned 2.98%
for the period, but underperforming the S&P 500 Index(3), which returned 14.07%.
The Fund distributed $0.51 per share in dividend income and $0.14 per share in
capital gains during the period.
The Fund's bond holdings underperformed its stock holdings during the
six-month period ended March 31, 2004. Bond yields decreased throughout the
period. The equity market gains were broad-based, with international stocks
leading the way during the period, followed closely by small cap and value
stocks.
When a compelling opportunity exists, the Tactical Asset Allocation (TAA)
Model seeks to enhance the Fund's returns by shifting assets between stocks and
bonds. The TAA Model maintained a 5% overweight position toward stocks
throughout the period ended March 31, 2004. With stocks outperforming long-term
U.S. Treasury bonds, the 5% TAA overweight position toward stocks added value to
the Fund's incremental returns. In maintaining the overweight position toward
stocks, the Fund employed a hedged futures overlay transaction, thus keeping the
portfolio's underlying assets near the Fund's long-term strategic allocation of
20% stocks and 80% bonds. With the futures overlay, the Fund had an effective
target allocation of 25% stocks and 75% bonds.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
At the beginning of the period, there was optimism regarding the strength
of the economy and corporate earnings. The period ended, however, with concerns
over disappointing job gains, which put a damper on the stock market late in the
period. The Federal Reserve Board maintained low rates throughout the reporting
period, as the economy continued to experience little threat of inflation and a
moderate, jobless recovery. In this environment the Fund's bond holdings
contributed less significantly to performance than its stock holdings.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
At this time the TAA Model indicates that stocks continue to be attractive
relative to bonds. As a result, we will maintain the Fund's overweight position
in stocks until the relative valuation between stocks and bonds returns to a
more normal environment.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004 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 Strategic Income Fund.
(1) The Fund's Adviser has committed through January 31, 2005, 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.
The Fund is a gateway blended Fund that invests all of its assets in two
or more master portfolios of Master Trust in varying proportions. References to
the investment activities of the Fund are intended to refer to the investment
activities of the master portfolios in which it invests.
Performance shown for the Institutional Class shares of the Wells Fargo
Strategic Income Fund for periods prior to November 8, 1999, reflects
performance of the Institutional Class shares of the Norwest Advantage Strategic
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 of the Institutional Class shares of the Fund
prior to November 11, 1994, reflects the performance of a collective fund,
adjusted to reflect Institutional Class expenses. Wells Fargo Bank, N.A.,
formerly Norwest Bank Minnesota, N.A., managed the collective investment fund
with an investment objective and principal investment strategy that were
substantially similar to those of the Fund. The collective investment fund's
performance was adjusted to reflect the Fund's 1994 estimate of its expense
ratio for the first year of operations as a mutual fund, including any
applicable sales load (without giving effect to any fee waivers or expense
reimbursements). The collective investment fund was not registered under the
Investment Company Act of 1940 (1940 Act) nor subject to certain investment
limitations, diversification requirements or other restrictions imposed by the
1940 Act or the Internal Revenue Code, which, if applicable, may have adversely
affected the Fund's performance results.
(2) The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Credit Index and the Lehman Brothers Mortgage-Backed Securities Index
and includes Treasury issues, agency issues, corporate bond issues and
mortgage-backed securities. You cannot invest directly in an index.
12
PERFORMANCE AT A GLANCE WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Excluding Sales Charge
-------------------------------------
6-Months* 1-Year 5-Year 10-Year
--------- ------ ------ -------
Wells Fargo Strategic Income Fund - Institutional Class 5.17 11.86 5.32 7.71
Benchmarks
S&P 500 Index 14.07 35.11 (1.20) 11.68
Lehman Brothers Aggregate Bond Index 2.98 5.40 7.29 7.54
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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 MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT SALES CHARGES.
TEN LARGEST HOLDINGS(4),(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 5.38%, 2/15/31 2.15%
U.S. Treasury Bond, 5.25%, 11/15/28 1.91%
GNMA, 7.08%, 4/16/24 1.89%
U.S. Treasury Bond, 5.25%, 2/15/29 1.50%
U.S. Treasury Bond, 6.13%, 8/15/29 1.31%
FHLB, 1.52%, 7/4/05 1.23%
U.S. Treasury Bond, 6.25%, 5/15/30 1.19%
U.S. Treasury Bond, 7.25%, 8/15/22 1.18%
FHLB, 1.55%, 7/14/05 1.18%
FFCB, 2.09%, 1/30/06 1.01%
DIVERSIFIED BOND STYLE CHARACTERISTICS(5)
(AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Average Credit Quality(6) AA
Average Maturity 9.17 years
Duration 5.14 years
DIVERSIFIED EQUITY STYLE CHARACTERISTICS(5)
(AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Dividend Yield 0.31%
Price to Earnings Ratio 20.89x
(trailing 12 months)
Price to Book Ratio 3.17x
Median Market Cap ($B) $24.68
5-Year Earnings Growth (historic) 9.79%
Portfolio Turnover 68%
GROWTH OF $10,000 CHART(7) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Wells Fargo Lehman Brothers
Strategic Income Aggregate
Fund Class I S&P 500 Index Bond Index
---------------- ------------- ---------------
3/31/94 10000 10000 10000
4/30/94 10025 10128 9920
5/31/94 10038 10293 9919
6/30/94 9965 10041 9897
7/31/94 10110 10371 10094
8/31/94 10244 10796 10106
9/30/94 10178 10532 9958
10/31/94 10213 10769 9949
11/30/94 10130 10376 9927
12/31/94 10193 10530 9995
1/31/95 10287 10803 10193
2/28/95 10450 11224 10436
3/31/95 10570 11555 10500
4/30/95 10689 11895 10646
5/31/95 10922 12369 11059
6/30/95 11060 12656 11139
7/31/95 11192 13076 11115
8/31/95 11261 13108 11249
9/30/95 11431 13661 11358
10/31/95 11443 13612 11506
11/30/95 11619 14209 11679
12/31/95 11732 14483 11842
1/31/96 11852 14975 11920
2/29/96 11819 15115 11713
3/31/96 11858 15260 11631
4/30/96 11938 15484 11566
5/31/96 12031 15882 11543
6/30/96 12078 15942 11697
7/31/96 11932 15238 11729
8/31/96 12018 15559 11709
9/30/96 12277 16434 11913
10/31/96 12410 16887 12177
11/30/96 12722 18162 12385
12/31/96 12670 17803 12270
1/31/97 12849 18915 12308
2/28/97 12856 19063 12339
3/31/97 12649 18281 12202
4/30/97 12892 19371 12385
5/31/97 13184 20549 12503
6/30/97 13434 21469 12651
7/31/97 13934 23176 12993
8/31/97 13634 21878 12883
9/30/97 13991 23075 13072
10/31/97 14055 22304 13262
11/30/97 14191 23337 13323
12/31/97 14347 23738 13457
1/31/98 14532 23999 13629
2/28/98 14739 25730 13618
3/31/98 14916 27047 13665
4/30/98 15016 27323 13736
5/31/98 15047 26853 13866
6/30/98 15278 27943 13984
7/31/98 15224 27647 14014
8/31/98 14947 23652 14242
9/30/98 15332 25168 14575
10/31/98 15539 27214 14498
11/30/98 15839 28864 14581
12/31/98 16131 30526 14624
1/31/99 16327 31802 14728
2/28/99 16025 30813 14470
3/31/99 16221 32046 14550
4/30/99 16417 33286 14597
5/31/99 16319 32500 14468
6/30/99 16482 34304 14422
7/31/99 16417 33233 14361
8/31/99 16376 33068 14354
9/30/99 16384 32162 14521
10/31/99 16564 34198 14574
11/30/99 16695 34892 14573
12/31/99 16847 36947 14503
1/31/00 16777 35093 14455
2/29/00 17014 34429 14630
3/31/00 17461 37796 14823
4/30/00 17339 36659 14780
5/31/00 17251 35907 14773
6/30/00 17593 36794 15080
7/31/00 17699 36220 15217
8/31/00 18032 38469 15438
9/30/00 17944 36438 15535
10/31/00 18076 36285 15638
11/30/00 18199 33426 15894
12/31/00 18568 33590 16190
1/31/01 18765 34782 16455
2/28/01 18624 31614 16598
3/31/01 18474 29612 16681
4/30/01 18783 31910 16611
5/31/01 18867 32124 16711
6/30/01 18821 31343 16774
7/31/01 18989 31036 17150
8/31/01 18924 29097 17347
9/30/01 18643 26748 17550
10/31/01 18942 27259 17917
11/30/01 19111 29350 17670
12/31/01 19179 29608 17557
1/31/02 19159 29176 17699
2/28/02 19159 28613 17871
3/31/02 19189 29689 17574
4/30/02 19229 27890 17915
5/31/02 19249 27686 18067
6/30/02 19119 25715 18223
7/31/02 18768 23712 18443
8/31/02 18848 23866 18755
9/30/02 18477 21274 19059
10/31/02 18788 23144 18971
11/30/02 19059 24505 18965
12/31/02 18896 23066 19358
1/31/03 18760 22464 19375
2/28/03 18781 22127 19643
3/31/03 18792 22340 19627
4/30/03 19249 24181 19790
5/31/03 19706 25453 20158
6/30/03 19758 25778 20118
7/31/03 19727 26232 19442
8/31/03 19862 26744 19570
9/30/03 19987 26460 20088
10/31/03 20257 27955 19901
11/30/03 20330 28201 19948
12/31/03 20655 29679 20151
1/31/04 20817 30225 20314
2/29/04 20978 30645 20533
3/31/04 21021 30182 20687
- --------------------------------------------------------------------------------
(3) The S&P 500 Index is an unmanaged index of 500 widely-held common stocks
representing, among others, industrial, financial, utility and transportation
companies listed or traded on national exchanges or over-the-counter markets.
You cannot invest directly in an index.
(4) The ten largest holdings are calculated based on the market value of the
Master Trust portfolio securities allocable to the Fund divided by total market
value of the portfolio of investments of the Fund. See Notes to the Financial
Statements for a discussion of the Master Trust.
(5) Portfolio holdings and characteristics are subject to change.
(6) The average credit quality is compiled from ratings from Standards & 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.
(7) The chart compares the performance of the Wells Fargo Strategic Income Fund
Institutional Class shares for the most recent ten years with the S&P 500 Index
and the Lehman Brothers Aggregate Bond Index. The chart assumes a hypothetical
$10,000 investment in Institutional Class shares and reflects all operating
expenses.
13
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 57.35%
AMUSEMENT & RECREATION SERVICES - 0.12%
7,313 HARRAH'S ENTERTAINMENT INCORPORATED $ 401,411
22,786 INTERNATIONAL GAME TECHNOLOGY 1,024,458
1,425,869
----------
APPAREL & ACCESSORY STORES - 0.28%
58,859 GAP INCORPORATED 1,290,189
22,339 KOHLS CORPORATION+ 1,079,644
32,031 LIMITED BRANDS 640,620
9,029 NORDSTROM INCORPORATED 360,257
3,370,710
----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS
& SIMILAR MATERIALS - 0.08%
8,300 JONES APPAREL GROUP INCORPORATED 300,045
7,169 LIZ CLAIBORNE INCORPORATED 263,031
7,100 VF CORPORATION 331,570
894,646
----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.07%
18,073 AUTONATION INCORPORATED+ 308,145
5,733 AUTOZONE INCORPORATED+ 492,866
801,011
----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.01%
4,262 RYDER SYSTEM INCORPORATED 165,067
----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS
& OPERATIVE BUILDERS - 0.10%
8,130 CENTEX CORPORATION 439,508
3,067 KB HOME 247,813
8,240 PULTE HOMES INCORPORATED 458,144
1,145,465
----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY
& MOBILE HOME DEALERS - 0.74%
149,489 HOME DEPOT INCORPORATED 5,584,909
51,666 LOWE'S COMPANIES INCORPORATED 2,900,013
9,578 SHERWIN-WILLIAMS COMPANY 368,082
8,853,004
----------
BUSINESS SERVICES - 3.86%
15,657 ADOBE SYSTEMS INCORPORATED 617,355
7,411 AUTODESK INCORPORATED 234,336
38,759 AUTOMATIC DATA PROCESSING INCORPORATED 1,627,878
14,792 BMC SOFTWARE INCORPORATED+ 289,184
66,206 CENDANT CORPORATION 1,614,764
10,783 CITRIX SYSTEMS INCORPORATED+ 233,128
38,237 COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED 1,027,046
12,324 COMPUTER SCIENCES CORPORATION+ 497,027
14
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
25,256 COMPUWARE CORPORATION+ $ 188,157
9,413 CONVERGYS CORPORATION+ 143,078
3,320 DELUXE CORPORATION 133,132
42,443 EBAY INCORPORATED+ 2,942,573
19,639 ELECTRONIC ARTS INCORPORATED+ 1,059,720
31,561 ELECTRONIC DATA SYSTEMS CORPORATION 610,705
9,137 EQUIFAX INCORPORATED 235,917
58,313 FIRST DATA CORPORATION 2,458,476
12,786 FISERV INCORPORATED+ 457,355
15,733 IMS HEALTH INCORPORATED 365,950
27,256 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 419,197
13,041 INTUIT INCORPORATED+ 585,280
5,915 MERCURY INTERACTIVE CORPORATION+ 264,992
709,227 MICROSOFT CORPORATION 17,709,398
7,424 MONSTER WORLDWIDE INCORPORATED+ 194,509
6,215 NCR CORPORATION+ 273,833
24,734 NOVELL INCORPORATED+ 281,473
12,483 OMNICOM GROUP INCORPORATED 1,001,761
343,469 ORACLE CORPORATION+ 4,125,063
17,510 PARAMETRIC TECHNOLOGY CORPORATION+ 79,145
23,912 PEOPLESOFT INCORPORATED+ 442,133
11,249 ROBERT HALF INTERNATIONAL INCORPORATED+ 265,701
32,580 SIEBEL SYSTEMS INCORPORATED+ 374,996
215,960 SUN MICROSYSTEMS INCORPORATED+ 898,394
18,876 SUNGARD DATA SYSTEMS INCORPORATED+ 517,202
20,449 SYMANTEC CORPORATION+ 946,789
21,799 UNISYS CORPORATION+ 311,290
28,093 VERITAS SOFTWARE CORPORATION+ 755,983
43,703 YAHOO! INCORPORATED+ 2,123,529
46,306,449
----------
CHEMICALS & ALLIED PRODUCTS - 6.33%
102,732 ABBOTT LABORATORIES 4,222,285
14,932 AIR PRODUCTS & CHEMICALS INCORPORATED 748,392
5,915 ALBERTO-CULVER COMPANY CLASS B 259,491
84,753 AMGEN INCORPORATED+ 4,930,082
7,257 AVERY DENNISON CORPORATION 451,458
15,466 AVON PRODUCTS INCORPORATED 1,173,405
127,536 BRISTOL-MYERS SQUIBB COMPANY 3,090,197
12,320 CHIRON CORPORATION+ 542,203
13,807 CLOROX COMPANY 675,300
34,994 COLGATE PALMOLIVE COMPANY 1,928,169
61,226 DOW CHEMICAL COMPANY 2,466,183
65,561 DU PONT (E.I.) DE NEMOURS & COMPANY 2,767,985
5,083 EASTMAN CHEMICAL COMPANY 216,943
16,899 ECOLAB INCORPORATED 482,129
73,832 ELI LILLY & COMPANY 4,939,361
15
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
24,165 FOREST LABORATORIES INCORPORATED+ $ 1,730,697
14,726 GENZYME CORPORATION+ 692,711
66,162 GILLETTE COMPANY 2,586,934
3,324 GREAT LAKES CHEMICAL CORPORATION 79,277
6,153 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 218,432
15,843 KING PHARMACEUTICALS INCORPORATED+ 266,796
16,263 MEDIMMUNE INCORPORATED+ 375,350
146,145 MERCK & COMPANY INCORPORATED 6,458,148
17,446 MONSANTO COMPANY 639,745
500,991 PFIZER INCORPORATED 17,559,735
11,250 PPG INDUSTRIES INCORPORATED 655,875
21,365 PRAXAIR INCORPORATED 793,069
84,914 PROCTER & GAMBLE COMPANY 8,905,780
14,629 ROHM & HAAS COMPANY 582,819
96,662 SCHERING-PLOUGH CORPORATION 1,567,858
4,555 SIGMA-ALDRICH CORPORATION 252,074
7,092 WATSON PHARMACEUTICALS INCORPORATED+ 303,467
87,504 WYETH 3,285,775
75,848,125
-----------
COMMUNICATIONS - 2.60%
20,503 ALLTEL CORPORATION 1,022,895
52,137 AT&T CORPORATION 1,020,321
178,999 AT&T WIRELESS SERVICES INCORPORATED+ 2,436,176
27,896 AVAYA INCORPORATED+ 442,988
120,337 BELLSOUTH CORPORATION 3,332,132
9,474 CENTURYTEL INCORPORATED 260,440
40,445 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 1,712,846
147,893 COMCAST CORPORATION CLASS A+ 4,250,445
72,242 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 1,786,545
116,043 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 500,145
217,324 SBC COMMUNICATIONS INCORPORATED 5,333,131
59,392 SPRINT CORPORATION-FON GROUP 1,094,595
68,007 SPRINT CORPORATION-PCS GROUP+ 625,664
21,189 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+ 699,449
181,443 VERIZON COMMUNICATIONS INCORPORATED 6,629,927
31,147,699
-----------
DEPOSITORY INSTITUTIONS - 6.20%
23,066 AMSOUTH BANCORPORATION 542,282
95,203 BANK OF AMERICA CORPORATION 7,709,539
50,843 BANK OF NEW YORK COMPANY INCORPORATED 1,601,554
73,560 BANK ONE CORPORATION 4,010,491
35,913 BB&T CORPORATION 1,267,729
14,627 CHARTER ONE FINANCIAL INCORPORATED 517,211
338,426 CITIGROUP INCORPORATED 17,496,624
11,521 COMERICA INCORPORATED 625,821
16
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
------ ------------- -----------
DEPOSITORY INSTITUTIONS (continued)
37,117 FIFTH THIRD BANCORP $ 2,055,168
8,246 FIRST TENNESSEE NATIONAL CORPORATION 393,334
70,294 FLEETBOSTON FINANCIAL CORPORATION 3,156,201
9,982 GOLDEN WEST FINANCIAL CORPORATION 1,117,485
15,070 HUNTINGTON BANCSHARES INCORPORATED 334,403
135,228 JP MORGAN CHASE & COMPANY 5,672,815
27,539 KEYCORP 834,156
7,834 M&T BANK CORPORATION 703,885
14,877 MARSHALL & ILSLEY CORPORATION 562,499
28,267 MELLON FINANCIAL CORPORATION 884,474
39,815 NATIONAL CITY CORPORATION 1,416,618
9,965 NORTH FORK BANCORPORATION INCORPORATED 421,719
14,477 NORTHERN TRUST CORPORATION 674,483
18,217 PNC FINANCIAL SERVICES GROUP 1,009,586
14,596 REGIONS FINANCIAL CORPORATION 533,046
21,703 SOUTHTRUST CORPORATION 719,671
22,036 STATE STREET CORPORATION 1,148,737
18,540 SUNTRUST BANKS INCORPORATED 1,292,423
19,826 SYNOVUS FINANCIAL CORPORATION 484,746
12,389 UNION PLANTERS CORPORATION 369,812
126,143 US BANCORP 3,487,854
86,391 WACHOVIA CORPORATION 4,060,377
59,089 WASHINGTON MUTUAL INCORPORATED 2,523,691
111,171 WELLS FARGO & COMPANY++ 6,300,061
5,904 ZIONS BANCORPORATION 337,709
74,266,204
-----------
EATING & DRINKING PLACES - 0.31%
10,829 DARDEN RESTAURANTS INCORPORATED 268,451
82,901 MCDONALD'S CORPORATION 2,368,481
7,485 WENDY'S INTERNATIONAL INCORPORATED 304,565
19,326 YUM! BRANDS INCORPORATED+ 734,195
3,675,692
-----------
EDUCATIONAL SERVICES - 0.08%
11,572 APOLLO GROUP INCORPORATED CLASS A+ 996,465
-----------
ELECTRIC, GAS & SANITARY SERVICES - 1.82%
40,912 AES CORPORATION+ 348,979
8,342 ALLEGHENY ENERGY INCORPORATED+ 114,369
21,039 ALLIED WASTE INDUSTRIES INCORPORATED+ 280,029
11,953 AMEREN CORPORATION 550,914
25,953 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 854,373
27,144 CALPINE CORPORATION+ 126,762
20,110 CENTERPOINT ENERGY INCORPORATED 229,857
11,699 CINERGY CORPORATION 478,372
18,688 CITIZENS COMMUNICATIONS COMPANY+ 241,823
17
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
------ ------------- -----------
ELECTRIC, GAS & SANITARY SERVICES (continued)
10,586 CMS ENERGY CORPORATION+ $ 94,745
14,848 CONSOLIDATED EDISON INCORPORATED 654,797
10,990 CONSTELLATION ENERGY GROUP INCORPORATED 439,050
21,315 DOMINION RESOURCES INCORPORATED 1,370,554
11,094 DTE ENERGY COMPANY 456,518
59,627 DUKE ENERGY CORPORATION 1,347,570
24,754 DYNEGY INCORPORATED CLASS A+ 98,026
21,406 EDISON INTERNATIONAL 519,952
42,116 EL PASO CORPORATION 299,445
15,033 ENTERGY CORPORATION 894,464
21,631 EXELON CORPORATION 1,489,727
21,671 FIRSTENERGY CORPORATION 846,903
12,113 FPL GROUP INCORPORATED 809,754
10,450 KEYSPAN CORPORATION 399,399
8,096 KINDER MORGAN INCORPORATED 510,210
2,893 NICOR INCORPORATED 101,920
17,244 NISOURCE INCORPORATED 366,435
2,447 PEOPLES ENERGY CORPORATION 109,259
27,528 PG&E CORPORATION+ 797,486
5,997 PINNACLE WEST CAPITAL CORPORATION 235,982
11,650 PPL CORPORATION 531,240
16,101 PROGRESS ENERGY INCORPORATED 758,035
15,517 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 728,989
14,929 SEMPRA ENERGY 474,742
48,107 SOUTHERN COMPANY 1,467,264
12,340 TECO ENERGY INCORPORATED 180,534
21,280 TXU CORPORATION 609,885
37,902 WASTE MANAGEMENT INCORPORATED 1,143,882
34,046 WILLIAMS COMPANIES INCORPORATED 325,820
26,204 XCEL ENERGY INCORPORATED 466,693
21,754,758
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 5.72%
52,996 ADC TELECOMMUNICATIONS INCORPORATED+ 153,688
22,903 ADVANCED MICRO DEVICES INCORPORATED+ 371,716
24,885 ALTERA CORPORATION+ 508,898
13,045 AMERICAN POWER CONVERSION CORPORATION 300,165
24,558 ANALOG DEVICES INCORPORATED 1,179,030
10,434 ANDREW CORPORATION+ 182,595
20,416 APPLIED MICRO CIRCUITS CORPORATION+ 117,392
19,897 BROADCOM CORPORATION CLASS A+ 779,366
31,205 CIENA CORPORATION+ 155,089
12,669 COMVERSE TECHNOLOGY INCORPORATED+ 229,816
6,047 COOPER INDUSTRIES LIMITED CLASS A 345,767
27,711 EMERSON ELECTRIC COMPANY 1,660,443
670,046 GENERAL ELECTRIC COMPANY 20,449,804
18
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
------ ------------- -----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (CONTINUED)
426,020 INTEL CORPORATION $11,587,744
111,657 INTERNATIONAL BUSINESS MACHINES CORPORATION 10,254,579
13,140 JABIL CIRCUIT INCORPORATED+ 386,710
94,349 JDS UNIPHASE CORPORATION+ 384,000
12,897 KLA-TENCOR CORPORATION+ 649,364
20,517 LINEAR TECHNOLOGY CORPORATION 759,539
24,905 LSI LOGIC CORPORATION+ 232,613
279,891 LUCENT TECHNOLOGIES INCORPORATED+ 1,150,352
21,551 MAXIM INTEGRATED PRODUCTS INCORPORATED 1,014,837
5,161 MAYTAG CORPORATION 162,933
40,036 MICRON TECHNOLOGY INCORPORATED+ 669,002
12,509 MOLEX INCORPORATED 380,149
153,788 MOTOROLA INCORPORATED 2,706,669
11,698 NATIONAL SEMICONDUCTOR CORPORATION+ 519,742
22,673 NETWORK APPLIANCE INCORPORATED+ 486,336
10,074 NOVELLUS SYSTEMS INCORPORATED+ 320,252
10,655 NVIDIA CORPORATION+ 282,251
11,351 PMC-SIERRA INCORPORATED+ 192,626
5,470 POWER-ONE INCORPORATED+ 60,498
6,226 QLOGIC CORPORATION+ 205,520
52,898 QUALCOMM INCORPORATED 3,513,485
11,729 ROCKWELL COLLINS INCORPORATED 370,754
34,087 SANMINA-SCI CORPORATION+ 375,298
10,021 SCIENTIFIC-ATLANTA INCORPORATED 324,079
54,957 SOLECTRON CORPORATION+ 303,912
27,290 TELLABS INCORPORATED+ 235,513
113,823 TEXAS INSTRUMENTS INCORPORATED 3,325,908
3,841 THOMAS & BETTS CORPORATION+ 83,811
4,576 WHIRLPOOL CORPORATION 315,149
22,651 XILINX INCORPORATED+ 860,738
68,548,132
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 0.20%
5,390 FLUOR CORPORATION 208,539
9,776 MOODY'S CORPORATION 692,141
24,804 PAYCHEX INCORPORATED 883,022
6,807 QUEST DIAGNOSTICS INCORPORATED 563,824
2,347,526
-----------
FabriCATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.31%
3,702 BALL CORPORATION 250,922
3,904 CRANE COMPANY 128,832
9,584 FORTUNE BRANDS INCORPORATED 734,422
20,244 ILLINOIS TOOL WORKS INCORPORATED 1,603,932
29,728 MASCO CORPORATION 904,623
3,828 SNAP-ON INCORPORATED 123,797
3,746,528
-----------
19
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FINANCIAL SERVICES - 0.02%
15,812 JANUS CAPITAL GROUP INCORPORATED $ 259,001
-----------
FOOD & KINDRED PRODUCTS - 2.24%
2,391 ADOLPH COORS COMPANY CLASS B 166,055
53,532 ANHEUSER-BUSCH COMPANIES INCORPORATED 2,730,132
42,575 ARCHER-DANIELS-MIDLAND COMPANY 718,240
27,008 CAMPBELL SOUP COMPANY 736,508
160,662 COCA COLA COMPANY 8,081,299
30,153 COCA COLA ENTERPRISES INCORPORATED 728,798
35,276 CONAGRA FOODS INCORPORATED 950,335
24,627 GENERAL MILLS INCORPORATED 1,149,588
7,287 HERCULES INCORPORATED+ 83,655
8,549 HERSHEY FOODS CORPORATION 708,285
23,133 HJ HEINZ COMPANY 862,630
27,094 KELLOGG COMPANY 1,063,168
9,023 MCCORMICK & COMPANY INCORPORATED 302,451
17,061 PEPSI BOTTLING GROUP INCORPORATED 507,565
112,368 PEPSICO INCORPORATED 6,051,017
51,983 SARA LEE CORPORATION 1,136,348
14,774 WM WRIGLEY JR COMPANY 873,439
26,849,513
-----------
FOOD STORES - 0.20%
24,107 ALBERTSON'S INCORPORATED 533,970
48,950 KROGER COMPANY+ 814,528
26,027 STARBUCKS CORPORATION+ 982,519
9,314 WINN-DIXIE STORES INCORPORATED+ 70,787
2,401,804
-----------
FORESTRY - 0.08%
14,442 WEYERHAEUSER COMPANY 945,951
-----------
FURNITURE & FIXTURES - 0.06%
12,610 LEGGETT & PLATT INCORPORATED 298,983
18,028 NEWELL RUBBERMAID INCORPORATED 418,250
717,233
-----------
GENERAL MERCHANDISE STORES - 0.58%
7,681 BIG LOTS INCORPORATED+ 111,374
22,142 DOLLAR GENERAL CORPORATION 425,126
11,309 FAMILY DOLLAR STORES INCORPORATED 406,559
11,878 FEDERATED DEPARTMENT STORES INCORPORATED 642,006
17,938 JC PENNEY COMPANY INCORPORATED 623,884
18,960 MAY DEPARTMENT STORES COMPANY 655,637
14,646 SEARS ROEBUCK & COMPANY 629,192
59,886 TARGET CORPORATION 2,697,265
33,066 TJX COMPANIES INCORPORATED 812,101
7,003,144
-----------
20
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 0.37%
21,524 BIOGEN IDEC INCORPORATED+ $ 1,196,734
29,341 CAREMARK RX INCORPORATED+ 975,588
32,556 HCA INCORPORATED 1,322,425
15,961 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 370,455
5,870 MANOR CARE INCORPORATED 207,152
30,537 TENET HEALTHCARE CORPORATION+ 340,793
4,413,147
-----------
HOLDING & OTHER INVESTMENT OFFICES - 0.25%
6,147 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 191,110
26,265 EQUITY OFFICE PROPERTIES TRUST 758,796
18,301 EQUITY RESIDENTIAL 546,285
12,034 PLUM CREEK TIMBER COMPANY 390,864
11,896 PROLOGIS 426,710
12,569 SIMON PROPERTY GROUP INCORPORATED 734,532
3,048,297
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.20%
19,604 BED BATH & BEYOND INCORPORATED+ 818,663
21,331 BEST BUY COMPANY INCORPORATED 1,103,240
13,834 CIRCUIT CITY STORES INCORPORATED 156,324
10,782 RADIOSHACK CORPORATION 357,531
2,435,758
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.13%
24,927 HILTON HOTELS CORPORATION 405,064
15,115 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 643,143
13,413 STARWOOD HOTELS & Resorts Worldwide Incorporated 543,227
1,591,434
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.86%
51,486 3M COMPANY 4,215,159
4,745 AMERICAN STANDARD COMPANIES INCORPORATED+ 539,744
24,292 APPLE COMPUTER INCORPORATED+ 657,099
110,478 APPLIED MATERIALS INCORPORATED+ 2,362,020
22,000 BAKER HUGHES INCORPORATED 802,560
5,154 BLACK & DECKER CORPORATION 293,469
22,814 CATERPILLAR INCORPORATED 1,803,903
451,563 CISCO SYSTEMS INCORPORATED+ 10,620,762
2,812 CUMMINS INCORPORATED 164,361
15,998 DEERE & COMPANY 1,108,821
168,228 DELL INCORPORATED+ 5,655,825
13,349 DOVER CORPORATION 517,541
158,899 EMC CORPORATION+ 2,162,615
24,603 GATEWAY INCORPORATED+ 129,904
11,522 INGERSOLL-RAND COMPANY CLASS A 779,463
8,441 LEXMARK INTERNATIONAL INCORPORATED+ 776,572
8,260 PALL CORPORATION 187,419
21
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
7,790 PARKER HANNIFIN CORPORATION $ 440,135
15,348 PITNEY BOWES INCORPORATED 653,978
5,325 STANLEY WORKS 227,271
15,191 SYMBOL TECHNOLOGIES INCORPORATED 209,636
34,308,257
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.53%
18,336 ACE LIMITED 782,214
20,605 AON CORPORATION 575,085
10,651 HUMANA INCORPORATED+ 202,582
9,267 JEFFERSON-PILOT CORPORATION 509,778
34,838 MARSH & MCLENNAN COMPANIES INCORPORATED 1,612,999
17,760 MEDCO HEALTH SOLUTIONS INCORPORATED+ 603,840
49,945 METLIFE INCORPORATED 1,782,038
19,452 UNUMPROVIDENT CORPORATION 284,583
6,353,119
-----------
INSURANCE CARRIERS - 2.90%
10,073 AETNA INCORPORATED 903,750
33,694 AFLAC INCORPORATED 1,352,477
46,227 ALLSTATE CORPORATION 2,101,479
7,020 AMBAC FINANCIAL GROUP INCORPORATED 517,936
171,416 AMERICAN INTERNATIONAL GROUP INCORPORATED 12,230,532
9,085 ANTHEM INCORPORATED+ 823,464
12,337 CHUBB CORPORATION 857,915
9,262 CIGNA CORPORATION 546,643
10,540 CINCINNATI FINANCIAL CORPORATION 457,963
19,142 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 1,219,345
19,008 JOHN HANCOCK FINANCIAL SERVICES INCORPORATED 830,460
11,694 LINCOLN NATIONAL CORPORATION 553,360
12,184 LOEWS CORPORATION 719,587
9,469 MBIA INCORPORATED 593,706
6,468 MGIC INVESTMENT CORPORATION 415,440
21,076 PRINCIPAL FINANCIAL GROUP INCORPORATED 750,938
14,254 PROGRESSIVE CORPORATION 1,248,650
35,512 PRUDENTIAL FINANCIAL INCORPORATED 1,590,227
9,104 SAFECO CORPORATION 393,020
14,980 ST PAUL COMPANIES INCORPORATED 599,350
7,436 TORCHMARK CORPORATION 399,982
66,020 TRAVELERS PROPERTY CASUALTY CORPORATION CLASS B 1,140,165
41,117 UNITEDHEALTH GROUP INCORPORATED 2,649,580
10,190 WELLPOINT HEALTH NETWORKS INCORPORATED+ 1,158,807
9,019 XL CAPITAL LIMITED CLASS A 685,805
34,740,581
-----------
22
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.06%
16,668 GEORGIA-PACIFIC CORPORATION $ 561,545
6,957 LOUISIANA-PACIFIC CORPORATION 179,491
741,036
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 1.73%
31,242 AGILENT TECHNOLOGIES INCORPORATED+ 988,185
8,621 ALLERGAN INCORPORATED 725,543
13,557 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 268,157
3,444 BAUSCH & LOMB INCORPORATED 206,537
40,098 BAXTER INTERNATIONAL INCORPORATED 1,238,627
16,603 BECTON DICKINSON & COMPANY 804,913
16,808 BIOMET INCORPORATED 644,755
53,821 BOSTON SCIENTIFIC CORPORATION+ 2,280,934
3,407 C.R. BARD INCORPORATED 332,660
10,111 DANAHER CORPORATION 944,064
18,828 EASTMAN KODAK COMPANY 492,729
20,466 GUIDANT CORPORATION 1,296,930
79,645 MEDTRONIC INCORPORATED 3,803,049
3,206 MILLIPORE CORPORATION+ 164,724
8,334 PERKINELMER INCORPORATED 172,430
27,347 RAYTHEON COMPANY 857,055
12,287 ROCKWELL AUTOMATION INCORPORATED 425,990
11,335 ST JUDE MEDICAL INCORPORATED+ 817,254
13,106 STRYKER CORPORATION 1,160,274
5,568 TEKTRONIX INCORPORATED 182,129
12,571 TERADYNE INCORPORATED+ 299,567
10,882 THERMO ELECTRON CORPORATION+ 307,743
7,977 WATERS CORPORATION+ 325,781
52,412 XEROX CORPORATION+ 763,643
15,888 ZIMMER HOLDINGS INCORPORATED+ 1,172,217
20,675,890
-----------
METAL MINING - 0.19%
12,880 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 503,479
28,388 NEWMONT MINING CORPORATION 1,323,733
6,093 PHELPS DODGE CORPORATION+ 497,554
2,324,766
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT
FUELS - 0.03%
6,681 VULCAN MATERIALS COMPANY 316,947
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.70%
9,986 EATON CORPORATION 561,113
11,464 HASBRO INCORPORATED 249,342
200,441 HEWLETT-PACKARD COMPANY 4,578,073
6,062 ITT INDUSTRIES INCORPORATED 462,713
194,996 JOHNSON & JOHNSON 9,890,197
23
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS MANUFACTURING INDUSTRIES (continued)
28,244 MATTEL INCORPORATED $ 520,819
9,634 TIFFANY & COMPANY 367,730
131,400 TYCO INTERNATIONAL LIMITED 3,764,610
20,394,597
-----------
MISCELLANEOUS RETAIL - 1.93%
30,097 COSTCO WHOLESALE CORPORATION+ 1,130,443
26,044 CVS CORPORATION 919,353
5,474 DILLARDS INCORPORATED CLASS A 104,882
5,095 EXPRESS SCRIPTS INCORPORATED+ 380,036
20,404 OFFICE DEPOT INCORPORATED+ 384,003
32,808 STAPLES INCORPORATED 832,995
14,026 TOYS R US INCORPORATED+ 235,637
284,349 WAL-MART STORES INCORPORATED 16,972,792
67,339 WALGREEN COMPANY 2,218,820
23,178,961
-----------
MOTION PICTURES - 0.70%
299,138 TIME WARNER INCORPORATED+ 5,043,467
134,533 WALT DISNEY COMPANY 3,361,979
8,405,446
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.43%
74,183 UNITED PARCEL SERVICE INCORPORATED CLASS B 5,180,941
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.49%
84,513 AMERICAN EXPRESS COMPANY 4,381,999
15,172 CAPITAL ONE FINANCIAL CORPORATION 1,144,424
12,097 COUNTRYWIDE FINANCIAL CORPORATION 1,160,102
63,841 FANNIE MAE 4,746,578
45,234 FREDDIE MAC 2,671,520
83,947 MBNA CORPORATION 2,319,456
19,069 PROVIDIAN FINANCIAL CORPORATION+ 249,804
29,620 SLM CORPORATION 1,239,597
17,913,480
-----------
OIL & GAS EXTRACTION - 0.94%
16,534 ANADARKO PETROLEUM CORPORATION 857,453
21,292 APACHE CORPORATION 919,176
10,460 BJ SERVICES COMPANY+ 452,604
12,998 BURLINGTON RESOURCES INCORPORATED 827,063
15,279 DEVON ENERGY CORPORATION 888,474
7,561 EOG RESOURCES INCORPORATED 346,974
28,782 HALLIBURTON COMPANY 874,685
6,626 KERR-MCGEE CORPORATION 341,239
9,631 NABORS INDUSTRIES LIMITED+ 440,618
8,821 NOBLE CORPORATION+ 338,903
24
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION (continued)
25,502 OCCIDENTAL PETROLEUM CORPORATION $ 1,174,367
6,841 ROWAN COMPANIES INCORPORATED+ 144,277
38,677 SCHLUMBERGER LIMITED 2,469,526
21,017 TRANSOCEAN INCORPORATED+ 586,164
17,013 UNOCAL CORPORATION 634,245
11,295,768
-----------
PAPER & ALLIED PRODUCTS - 0.39%
6,980 BEMIS COMPANY INCORPORATED 181,480
5,730 BOISE CASCADE CORPORATION 198,544
31,568 INTERNATIONAL PAPER COMPANY 1,334,064
32,953 KIMBERLY-CLARK CORPORATION 2,079,334
13,213 MEADWESTVACO CORPORATION 373,796
10,331 PACTIV CORPORATION+ 229,865
3,594 TEMPLE-INLAND INCORPORATED 227,644
4,624,727
-----------
PERSONAL SERVICES - 0.09%
11,238 CINTAS CORPORATION 488,741
11,713 H & R BLOCK INCORPORATED 597,714
1,086,455
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 2.41%
5,905 AMERADA HESS CORPORATION 385,478
4,566 ASHLAND INCORPORATED 212,273
70,285 CHEVRONTEXACO CORPORATION 6,169,617
44,953 CONOCOPHILLIPS 3,138,169
430,851 EXXON MOBIL CORPORATION 17,919,093
22,355 MARATHON OIL CORPORATION 752,693
5,075 SUNOCO INCORPORATED 316,579
28,893,902
-----------
PRIMARY METAL INDUSTRIES - 0.25%
57,181 ALCOA INCORPORATED 1,983,609
5,298 ALLEGHENY TECHNOLOGIES INCORPORATED 64,106
8,242 ENGELHARD CORPORATION 246,353
5,143 NUCOR CORPORATION 316,192
7,436 UNITED STATES STEEL CORPORATION 277,140
5,678 WORTHINGTON INDUSTRIES INCORPORATED 108,847
2,996,247
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.83%
4,404 AMERICAN GREETINGS CORPORATION CLASS A+ 100,279
5,359 DOW JONES & COMPANY INCORPORATED 256,750
17,809 GANNETT COMPANY INCORPORATED 1,569,685
5,249 KNIGHT-RIDDER INCORPORATED 384,489
12,575 MCGRAW-HILL COMPANIES INCORPORATED 957,460
25
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES (continued)
3,296 MEREDITH CORPORATION $ 166,646
9,847 NEW YORK TIMES COMPANY CLASS A 435,237
14,075 RR DONNELLEY & SONS COMPANY 425,769
21,693 TRIBUNE COMPANY 1,094,195
114,931 VIACOM INCORPORATED CLASS B 4,506,445
9,896,955
-----------
RAILROAD TRANSPORTATION - 0.23%
24,441 BURLINGTON NORTHERN SANTA FE CORPORATION 769,891
14,061 CSX CORPORATION 425,908
25,690 NORFOLK SOUTHERN CORPORATION 567,492
17,006 UNION PACIFIC CORPORATION 1,017,299
2,780,590
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.17%
4,851 COOPER TIRE & RUBBER COMPANY 97,748
11,519 GOODYEAR TIRE & RUBBER COMPANY+ 98,372
17,288 NIKE INCORPORATED CLASS B 1,346,216
3,869 REEBOK INTERNATIONAL LIMITED 159,983
5,583 SEALED AIR CORPORATION+ 277,643
1,979,962
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES
& SERVICES - 1.33%
6,813 BEAR STEARNS COMPANIES INCORPORATED 597,364
89,132 CHARLES SCHWAB CORPORATION 1,034,822
7,139 FEDERATED INVESTORS INCORPORATED CLASS B 224,379
16,387 FRANKLIN RESOURCES INCORPORATED 912,428
31,755 GOLDMAN SACHS GROUP INCORPORATED 3,313,634
18,216 LEHMAN BROTHERS HOLDINGS INCORPORATED 1,509,560
63,751 MERRILL LYNCH & COMPANY INCORPORATED 3,797,010
72,073 MORGAN STANLEY 4,129,783
8,269 T ROWE PRICE GROUP INCORPORATED 445,120
15,964,100
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.08%
88,560 CORNING INCORPORATED+ 990,101
-----------
TOBACCO PRODUCTS - 0.67%
134,473 ALTRIA GROUP INCORPORATED 7,322,055
5,560 RJ REYNOLDS TOBACCO HOLDINGS INCORPORATED 336,380
10,896 UST INCORPORATED 393,345
8,051,780
-----------
TRANSPORTATION BY AIR - 0.19%
8,111 DELTA AIR LINES INCORPORATED+ 64,239
19,604 FEDEX CORPORATION 1,473,436
51,865 SOUTHWEST AIRLINES COMPANY 737,002
2,274,677
-----------
26
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT - 1.56%
55,351 BOEING COMPANY $ 2,273,266
6,152 BRUNSWICK CORPORATION 251,186
9,774 DANA CORPORATION 194,112
36,813 DELPHI CORPORATION 366,657
120,328 FORD MOTOR COMPANY 1,632,851
13,022 GENERAL DYNAMICS CORPORATION 1,163,255
36,925 GENERAL MOTORS CORPORATION 1,739,167
11,430 GENUINE PARTS COMPANY 373,990
7,727 GOODRICH CORPORATION 216,897
19,906 HARLEY-DAVIDSON INCORPORATED 1,061,786
56,425 HONEYWELL INTERNATIONAL INCORPORATED 1,909,986
12,388 JOHNSON CONTROLS INCORPORATED 732,750
29,623 LOCKHEED MARTIN CORPORATION 1,351,994
4,526 NAVISTAR INTERNATIONAL CORPORATION+ 207,517
12,262 NORTHROP GRUMMAN CORPORATION 1,206,826
11,499 PACCAR INCORPORATED 646,704
9,050 TEXTRON INCORPORATED 481,008
33,880 UNITED TECHNOLOGIES CORPORATION 2,923,844
18,733,796
------------
TRANSPORTATION SERVICES - 0.02%
9,204 SABRE HOLDINGS CORPORATION 228,351
------------
WATER TRANSPORTATION - 0.16%
41,393 CARNIVAL CORPORATION 1,858,960
------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.49%
7,374 AMERISOURCEBERGEN CORPORATION 403,210
7,973 BROWN-FORMAN CORPORATION CLASS B 379,993
28,581 CARDINAL HEALTH INCORPORATED 1,969,231
19,122 MCKESSON CORPORATION 575,381
29,060 SAFEWAY INCORPORATED+ 598,055
8,830 SUPERVALU INCORPORATED 269,668
42,359 SYSCO CORPORATION 1,654,119
5,849,657
------------
WHOLESALE TRADE-DURABLE GOODS - 0.03%
8,589 VISTEON CORPORATION 82,195
5,995 WW GRAINGER INCORPORATED 287,760
369,955
------------
TOTAL COMMON STOCK (COST $754,748,128) 687,368,636
------------
COLLATERAL FOR SECURITIES LENDING - 44.58%
COLLATERAL FOR SECURITY LENDING 534,334,221
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $534,334,221) 534,334,221
------------
27
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
US TREASURY SECURITIES - 36.36%
US TREASURY BONDS - 36.36%
$18,744,000 US TREASURY BOND 7.50% 11/15/2024 $ 25,483,780
18,572,000 US TREASURY BOND 7.63 02/15/2025 25,574,220
22,026,000 US TREASURY BOND 6.88 08/15/2025 28,137,356
27,389,000 US TREASURY BOND 6.00 02/15/2026 31,754,122
16,883,000 US TREASURY BOND 6.75 08/15/2026 21,346,443
21,435,000 US TREASURY BOND 6.50 11/15/2026 26,370,066
18,856,000 US TREASURY BOND 6.63 02/15/2027 23,536,851
17,730,000 US TREASURY BOND 6.38 08/15/2027 21,530,869
43,811,000 US TREASURY BOND 6.13 11/15/2027 51,686,728
23,471,000 US TREASURY BOND 5.50 08/15/2028 25,600,805
21,904,000 US TREASURY BOND 5.25 11/15/2028 23,125,827
22,711,000 US TREASURY BOND 5.25 02/15/2029 24,009,797
22,310,000 US TREASURY BOND 6.13 08/15/2029 26,446,073
35,543,000 US TREASURY BOND 6.25 05/15/2030 42,911,242
35,205,000 US TREASURY BOND 5.38 02/15/2031 38,373,450
435,887,629
--------------
TOTAL US TREASURY SECURITIES (COST $394,551,962) 435,887,629
--------------
SHORT-TERM INVESTMENTS - 6.14%
SHARES
MUTUAL FUND - 4.04%
48,439,204 WELLS FARGO MONEY MARKET TRUST~ 48,439,204
--------------
PRINCIPAL
TREASURY BILLS - 2.10%
$ 540,000 US TREASURY BILL#^ 0.90 05/13/2004 539,407
255,000 US TREASURY BILL#^ 0.91 05/13/2004 254,720
23,600,000 US TREASURY BILL#^ 0.95 05/13/2004 23,574,061
150,000 US TREASURY BILL#^ 1.00 05/13/2004 149,835
410,000 US TREASURY BILL#^ 0.95 08/12/2004 408,529
250,000 US TREASURY BILL#^ 0.97 08/12/2004 249,103
25,175,655
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $73,614,701) 73,614,859
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,757,249,012)* 144.43% $1,731,205,345
OTHER ASSETS AND LIABILITIES, NET (44.43) (532,584,006)
------ --------------
TOTAL NET ASSETS 100.00% $1,198,621,339
====== ==============
+ NON-INCOME EARNING SECURITIES.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $4,852,539.
~ 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.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
^ ZERO COUPON/ STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO
MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
28
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 99.00%
N/A WELLS FARGO DISCIPLINED GROWTH PORTFOLIO $ 56,822,115
N/A WELLS FARGO EQUITY INCOME PORTFOLIO 226,736,084
N/A WELLS FARGO INDEX PORTFOLIO 283,018,766
N/A WELLS FARGO INTERNATIONAL EQUITY PORTFOLIO 128,286,206
N/A WELLS FARGO LARGE CAP APPRECIATION PORTFOLIO 28,331,438
N/A WELLS FARGO LARGE CAP VALUE PORTFOLIO 56,897,409
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO 197,082,882
N/A WELLS FARGO MANAGED FIXED INCOME PORTFOLIO 303,259,831
N/A WELLS FARGO OVERSEAS PORTFOLIO 43,131,403
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO 38,201,844
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 38,249,669
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 38,359,427
N/A WELLS FARGO STRATEGIC VALUE BOND PORTFOLIO 101,451,215
N/A WELLS FARGO TACTICAL MATURITY BOND PORTFOLIO 201,792,353
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $1,526,369,129) 1,741,620,642
--------------
PRINCIPAL
SHORT-TERM INVESTMENTS - 1.15%
US TREASURY BILLS - 1.15%
$ 2,945,000 US TREASURY BILL#^ 0.97% 04/08/2004 2,944,500
475,000 US TREASURY BILL#^ 0.93 05/13/2004 474,478
14,745,000 US TREASURY BILL#^ 0.97 05/13/2004 14,728,793
670,000 US TREASURY BILL#^ 1.00 05/13/2004 669,264
385,000 US TREASURY BILL#^ 0.95 08/12/2004 383,628
1,080,000 US TREASURY BILL#^ 0.97 08/12/2004 1,076,126
20,276,789
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $20,276,579) 20,276,789
--------------
Total Investments in Master Portfolios and Securities
(Cost $1,546,645,708) 100.15% $1,761,897,431
OTHER ASSETS AND LIABILITIES, NET (0.15) (2,607,891)
------ --------------
TOTAL NET ASSETS 100.00% $1,759,289,540
====== ==============
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
^ ZERO COUPON/ STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO
MATURITY.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
29
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 95.79%
AMUSEMENT & RECREATION SERVICES - 0.20%
846 HARRAH'S ENTERTAINMENT INCORPORATED $ 46,437
2,639 INTERNATIONAL GAME TECHNOLOGY 118,649
165,086
----------
APPAREL & ACCESSORY STORES - 0.47%
6,816 GAP INCORPORATED 149,407
2,587 KOHLS CORPORATION+ 125,030
3,710 LIMITED BRANDS 74,200
1,045 NORDSTROM INCORPORATED 41,695
390,332
----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.13%
961 JONES APPAREL GROUP INCORPORATED 34,740
830 LIZ CLAIBORNE INCORPORATED 30,453
822 VF CORPORATION 38,387
103,580
----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.11%
2,093 AUTONATION INCORPORATED+ 35,686
664 AUTOZONE INCORPORATED+ 57,084
92,770
----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
493 RYDER SYSTEM INCORPORATED 19,094
----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 0.16%
941 CENTEX CORPORATION 50,871
355 KB HOME 28,684
954 PULTE HOMES INCORPORATED 53,042
132,597
----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 1.23%
17,313 HOME DEPOT INCORPORATED 646,813
5,983 LOWE'S COMPANIES INCORPORATED 335,826
1,109 SHERWIN-WILLIAMS COMPANY 42,619
1,025,258
----------
BUSINESS SERVICES - 6.45%
1,813 ADOBE SYSTEMS INCORPORATED 71,487
858 AUTODESK INCORPORATED 27,130
4,488 AUTOMATIC DATA PROCESSING INCORPORATED 188,496
1,713 BMC SOFTWARE INCORPORATED+ 33,489
7,667 CENDANT CORPORATION 186,998
1,248 CITRIX SYSTEMS INCORPORATED+ 26,982
4,428 COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED 118,936
1,427 COMPUTER SCIENCES CORPORATION+ 57,551
2,925 COMPUWARE CORPORATION+ 21,791
1,090 CONVERGYS CORPORATION+ 16,568
30
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
384 DELUXE CORPORATION $ 15,398
4,915 EBAY INCORPORATED+ 340,757
2,274 ELECTRONIC ARTS INCORPORATED+ 122,705
3,655 ELECTRONIC DATA SYSTEMS CORPORATION 70,724
1,058 EQUIFAX INCORPORATED 27,318
6,753 FIRST DATA CORPORATION 284,707
1,480 FISERV INCORPORATED+ 52,940
1,822 IMS HEALTH INCORPORATED 42,380
3,156 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 48,539
1,510 INTUIT INCORPORATED+ 67,769
685 MERCURY INTERACTIVE CORPORATION+ 30,688
82,139 MICROSOFT CORPORATION 2,051,011
859 MONSTER WORLDWIDE INCORPORATED+ 22,506
719 NCR CORPORATION+ 31,679
2,864 NOVELL INCORPORATED+ 32,592
1,445 OMNICOM GROUP INCORPORATED 115,961
39,779 ORACLE CORPORATION+ 477,746
2,027 PARAMETRIC TECHNOLOGY CORPORATION+ 9,162
2,769 PEOPLESOFT INCORPORATED+ 51,199
1,302 ROBERT HALF INTERNATIONAL INCORPORATED+ 30,753
3,773 SIEBEL SYSTEMS INCORPORATED+ 43,427
25,011 SUN MICROSYSTEMS INCORPORATED+ 104,046
2,186 SUNGARD DATA SYSTEMS INCORPORATED+ 59,896
2,368 SYMANTEC CORPORATION+ 109,638
2,524 UNISYS CORPORATION+ 36,043
3,253 VERITAS SOFTWARE CORPORATION+ 87,538
5,061 YAHOO! INCORPORATED+ 245,914
5,362,464
----------
CHEMICALS & ALLIED PRODUCTS - 10.57%
11,898 ABBOTT LABORATORIES 489,008
1,729 AIR PRODUCTS & CHEMICALS INCORPORATED 86,657
685 ALBERTO-CULVER COMPANY CLASS B 30,051
9,815 AMGEN INCORPORATED+ 570,939
840 AVERY DENNISON CORPORATION 52,256
1,791 AVON PRODUCTS INCORPORATED 135,883
14,770 BRISTOL-MYERS SQUIBB COMPANY 357,877
1,426 CHIRON CORPORATION+ 62,758
1,599 CLOROX COMPANY 78,207
4,052 COLGATE PALMOLIVE COMPANY 223,265
7,090 DOW CHEMICAL COMPANY 285,585
7,593 DU PONT (E.I.) DE NEMOURS & COMPANY 320,576
588 EASTMAN CHEMICAL COMPANY 25,096
1,957 ECOLAB INCORPORATED 55,833
8,550 ELI LILLY & COMPANY 571,995
2,798 FOREST LABORATORIES INCORPORATED+ 200,393
1,705 GENZYME CORPORATION+ 80,203
7,662 GILLETTE COMPANY 299,584
31
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
385 GREAT LAKES CHEMICAL CORPORATION $ 9,182
712 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 25,276
1,834 KING PHARMACEUTICALS INCORPORATED+ 30,885
1,883 MEDIMUNE INCORPORATED+ 43,460
16,925 MERCK & COMPANY INCORPORATED 747,916
2,020 MONSANTO COMPANY 74,073
58,022 PFIZER INCORPORATED 2,033,671
1,302 PPG INDUSTRIES INCORPORATED 75,907
2,474 PRAXAIR INCORPORATED 91,835
9,834 PROCTER & GAMBLE COMPANY 1,031,390
1,694 ROHM & HAAS COMPANY 67,489
11,195 SCHERING-PLOUGH CORPORATION 181,583
527 SIGMA-ALDRICH CORPORATION 29,164
821 WATSON PHARMACEUTICALS INCORPORATED+ 35,131
10,134 WYETH 380,532
8,783,660
----------
COMMUNICATIONS - 4.34%
2,374 ALLTEL CORPORATION 118,439
6,038 AT&T CORPORATION 118,164
20,731 AT&T WIRELESS SERVICES INCORPORATED+ 282,149
3,230 AVAYA INCORPORATED+ 51,292
13,936 BELLSOUTH CORPORATION 385,888
1,097 CENTURYTEL INCORPORATED 30,156
4,684 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 198,367
17,128 COMCAST CORPORATION CLASS A+ 492,259
8,366 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 206,891
13,439 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 57,922
25,169 SBC COMMUNICATIONS INCORPORATED 617,647
6,878 SPRINT CORPORATION-FON GROUP 126,762
7,876 SPRINT CORPORATION-PCS GROUP+ 72,459
2,454 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+ 81,007
21,013 VERIZON COMMUNICATIONS INCORPORATED 767,815
3,607,217
----------
DEPOSITORY INSTITUTIONS - 10.35%
2,671 AMSOUTH BANCORPORATION 62,795
11,026 BANK OF AMERICA CORPORATION 892,885
5,888 BANK OF NEW YORK COMPANY INCORPORATED 185,472
8,519 BANK ONE CORPORATION 464,456
4,159 BB&T CORPORATION 146,813
1,694 CHARTER ONE FINANCIAL INCORPORATED 59,900
39,195 CITIGROUP INCORPORATED 2,026,381
1,334 COMERICA INCORPORATED 72,463
4,298 FIFTH THIRD BANCORP 237,980
955 FIRST TENNESSEE NATIONAL CORPORATION 45,553
8,141 FLEETBOSTON FINANCIAL CORPORATION 365,531
1,156 GOLDEN WEST FINANCIAL CORPORATION 129,414
32
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (continued)
1,745 HUNTINGTON BANCSHARES INCORPORATED $ 38,722
15,661 JP MORGAN CHASE & COMPANY 656,979
3,189 KEYCORP 96,595
907 M&T BANK CORPORATION 81,494
1,723 MARSHALL & ILSLEY CORPORATION 65,147
3,273 MELLON FINANCIAL CORPORATION 102,412
4,611 NATIONAL CITY CORPORATION 164,059
1,154 NORTH FORK BANCORPORATION INCORPORATED 48,837
1,676 NORTHERN TRUST CORPORATION 78,085
2,109 PNC FINANCIAL SERVICES GROUP 116,881
1,690 REGIONS FINANCIAL CORPORATION 61,719
2,513 SOUTHTRUST CORPORATION 83,331
2,552 STATE STREET CORPORATION 133,036
2,147 SUNTRUST BANKS INCORPORATED 149,667
2,296 SYNOVUS FINANCIAL CORPORATION 56,137
1,434 UNION PLANTERS CORPORATION 42,805
14,609 US BANCORP 403,939
10,005 WACHOVIA CORPORATION 470,235
6,843 WASHINGTON MUTUAL INCORPORATED 292,265
12,875 WELLS FARGO & Company++ 729,626
683 ZIONS BANCORPORATION 39,068
8,600,682
----------
EATING & DRINKING PLACES - 0.51%
1,254 DARDEN RESTAURANTS INCORPORATED 31,087
9,601 MCDONALD'S CORPORATION 274,300
866 WENDY'S INTERNATIONAL INCORPORATED 35,237
2,238 YUM! BRANDS INCORPORATED+ 85,022
425,646
----------
EDUCATIONAL SERVICES - 0.14%
1,340 APOLLO GROUP INCORPORATED CLASS A+ 115,387
----------
ELECTRIC, GAS & SANITARY SERVICES - 3.03%
4,738 AES CORPORATION+ 40,415
966 ALLEGHENY ENERGY INCORPORATED+ 13,244
2,436 ALLIED WASTE INDUSTRIES INCORPORATED+ 32,423
1,384 AMEREN CORPORATION 63,789
3,005 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 98,925
3,143 CALPINE CORPORATION+ 14,678
2,329 CENTERPOINT ENERGY INCORPORATED 26,620
1,355 CINERGY CORPORATION 55,406
2,164 CITIZENS COMMUNICATIONS COMPANY+ 28,002
1,226 CMS ENERGY CORPORATION+ 10,973
1,719 CONSOLIDATED EDISON INCORPORATED 75,808
1,272 CONSTELLATION ENERGY GROUP INCORPORATED 50,816
2,468 DOMINION RESOURCES INCORPORATED 158,692
1,284 DTE ENERGY COMPANY 52,837
33
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (continued)
6,905 DUKE ENERGY CORPORATION $ 156,053
2,866 DYNEGY INCORPORATED CLASS A+ 11,349
2,479 EDISON INTERNATIONAL 60,215
4,877 EL PASO CORPORATION 34,675
1,741 ENTERGY CORPORATION 103,590
2,505 EXELON CORPORATION 172,519
2,509 FIRSTENERGY CORPORATION 98,052
1,402 FPL GROUP INCORPORATED 93,724
1,210 KEYSPAN CORPORATION 46,246
937 KINDER MORGAN INCORPORATED 59,050
335 NICOR INCORPORATED 11,802
1,997 NISOURCE INCORPORATED 42,436
283 PEOPLES ENERGY CORPORATION 12,636
3,188 PG&E CORPORATION+ 92,356
694 PINNACLE WEST CAPITAL CORPORATION 27,309
1,349 PPL CORPORATION 61,514
1,864 PROGRESS ENERGY INCORPORATED 87,757
1,797 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 84,423
1,729 SEMPRA ENERGY 54,982
5,571 SOUTHERN COMPANY 169,916
1,429 TECO ENERGY INCORPORATED 20,906
2,464 TXU CORPORATION 70,618
4,389 WASTE MANAGEMENT INCORPORATED 132,460
3,943 WILLIAMS COMPANIES INCORPORATED 37,735
3,034 XCEL ENERGY INCORPORATED 54,036
2,518,987
----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 9.55%
6,137 ADC TELECOMMUNICATIONS INCORPORATED+ 17,797
2,652 ADVANCED MICRO DEVICES INCORPORATED+ 43,042
2,882 ALTERA CORPORATION+ 58,937
1,510 AMERICAN POWER CONVERSION CORPORATION 34,745
2,844 ANALOG DEVICES INCORPORATED 136,540
1,208 ANDREW CORPORATION+ 21,140
2,364 APPLIED MICRO CIRCUITS CORPORATION+ 13,593
2,304 BROADCOM CORPORATION CLASS A+ 90,248
3,614 CIENA CORPORATION+ 17,962
1,467 COMVERSE TECHNOLOGY INCORPORATED+ 26,611
700 COOPER INDUSTRIES LIMITED CLASS A 40,026
3,209 EMERSON ELECTRIC COMPANY 192,283
77,601 GENERAL ELECTRIC COMPANY 2,368,382
49,339 INTEL CORPORATION 1,342,021
12,931 INTERNATIONAL BUSINESS MACHINES CORPORATION 1,187,583
1,521 JABIL CIRCUIT INCORPORATED+ 44,763
10,927 JDS UNIPHASE CORPORATION+ 44,473
1,493 KLA-TENCOR CORPORATION+ 75,173
2,376 LINEAR TECHNOLOGY CORPORATION 87,959
2,884 LSI LOGIC CORPORATION+ 26,937
34
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
32,415 LUCENT TECHNOLOGIES INCORPORATED+ $ 133,226
2,496 MAXIM INTEGRATED PRODUCTS INCORPORATED 117,537
597 MAYTAG CORPORATION 18,847
4,636 MICRON TECHNOLOGY INCORPORATED+ 77,468
1,448 MOLEX INCORPORATED 44,005
17,811 MOTOROLA INCORPORATED 313,474
1,354 NATIONAL SEMICONDUCTOR CORPORATION+ 60,158
2,625 NETWORK APPLIANCE INCORPORATED+ 56,306
1,166 NOVELLUS SYSTEMS INCORPORATED+ 37,067
1,234 NVIDIA CORPORATION+ 32,689
1,314 PMC-SIERRA INCORPORATED+ 22,299
633 POWER-ONE INCORPORATED+ 7,001
721 QLOGIC CORPORATION+ 23,800
6,126 QUALCOMM INCORPORATED 406,889
1,358 ROCKWELL COLLINS INCORPORATED 42,926
3,947 SANMINA-SCI CORPORATION+ 43,456
1,160 SCIENTIFIC-ATLANTA INCORPORATED 37,514
6,364 SOLECTRON CORPORATION+ 35,193
3,160 TELLABS INCORPORATED+ 27,271
13,182 TEXAS INSTRUMENTS INCORPORATED 385,178
444 THOMAS & BETTS CORPORATION+ 9,688
530 WHIRLPOOL CORPORATION 36,501
2,623 XILINX INCORPORATED+ 99,674
7,938,382
----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES - 0.33%
624 FLUOR CORPORATION 24,142
1,132 MOODY'S CORPORATION 80,146
2,872 PAYCHEX INCORPORATED 102,243
788 QUEST DIAGNOSTICS INCORPORATED 65,270
271,801
----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.52%
428 BALL CORPORATION 29,010
452 CRANE COMPANY 14,916
1,109 FORTUNE BRANDS INCORPORATED 84,983
2,344 ILLINOIS TOOL WORKS INCORPORATED 185,715
3,442 MASCO CORPORATION 104,740
443 SNAP-ON INCORPORATED 14,326
433,690
----------
FINANCIAL SERVICES - 0.04%
1,831 JANUS CAPITAL GROUP INCORPORATED 29,992
----------
FOOD & KINDRED PRODUCTS - 3.74%
277 ADOLPH COORS COMPANY CLASS B 19,238
6,199 ANHEUSER-BUSCH COMPANIES INCORPORATED 316,149
4,930 ARCHER-DANIELS-MIDLAND COMPANY 83,169
3,128 CAMPBELL SOUP COMPANY 85,301
35
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (continued)
18,607 COCA COLA COMPANY $ 935,932
3,492 COCA COLA ENTERPRISES INCORPORATED 84,402
4,085 CONAGRA FOODS INCORPORATED 110,050
2,852 GENERAL MILLS INCORPORATED 133,131
843 HERCULES INCORPORATED+ 9,678
990 HERSHEY FOODS CORPORATION 82,021
2,679 HJ HEINZ COMPANY 99,900
3,138 KELLOGG COMPANY 123,135
1,045 MCCORMICK & COMPANY INCORPORATED 35,028
1,976 PEPSI BOTTLING GROUP INCORPORATED 58,786
13,014 PEPSICO INCORPORATED 700,804
6,020 SARA LEE CORPORATION 131,597
1,711 WM WRIGLEY JR COMPANY 101,154
3,109,475
----------
FOOD STORES - 0.34%
2,792 ALBERTSON'S INCORPORATED 61,843
5,669 KROGER COMPANY+ 94,332
3,014 STARBUCKS CORPORATION+ 113,778
1,078 WINN-DIXIE STORES INCORPORATED+ 8,193
278,146
----------
FORESTRY - 0.13%
1,672 WEYERHAEUSER COMPANY 109,516
----------
FURNITURE & FIXTURES - 0.10%
1,460 LEGGETT & PLATT INCORPORATED 34,616
2,088 NEWELL RUBBERMAID INCORPORATED 48,442
83,058
----------
GENERAL MERCHANDISE STORES - 0.98%
889 BIG LOTS INCORPORATED+ 12,891
2,564 DOLLAR GENERAL CORPORATION 49,229
1,309 FAMILY DOLLAR STORES INCORPORATED 47,059
1,375 FEDERATED DEPARTMENT STORES INCORPORATED 74,319
2,077 JC PENNEY COMPANY INCORPORATED 72,238
2,195 MAY DEPARTMENT STORES COMPANY 75,903
1,696 SEARS ROEBUCK & COMPANY 72,860
6,935 TARGET CORPORATION 312,352
3,829 TJX COMPANIES INCORPORATED 94,040
810,891
----------
HEALTH SERVICES - 0.62%
2,492 BIOGEN IDEC INCORPORATED+ 138,555
3,398 CAREMARK RX INCORPORATED+ 112,984
3,770 HCA INCORPORATED 153,137
1,848 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 42,892
36
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES (continued)
679 MANOR CARE INCORPORATED $ 23,962
3,536 TENET HEALTHCARE CORPORATION+ 39,462
510,992
----------
HOLDING & OTHER INVESTMENT OFFICES - 0.43%
711 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 22,105
3,041 EQUITY OFFICE PROPERTIES TRUST 87,855
2,119 EQUITY RESIDENTIAL 63,252
1,393 PLUM CREEK TIMBER COMPANY 45,245
1,377 PROLOGIS 49,393
1,455 SIMON PROPERTY GROUP INCORPORATED 85,030
352,880
----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.34%
2,270 BED BATH & BEYOND INCORPORATED+ 94,795
2,470 BEST BUY COMPANY INCORPORATED 127,748
1,602 CIRCUIT CITY STORES INCORPORATED 18,103
1,248 RADIOSHACK CORPORATION 41,384
282,030
----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.22%
2,886 HILTON HOTELS CORPORATION 46,897
1,750 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 74,463
1,553 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 62,897
184,257
----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.78%
5,962 3M COMPANY 488,109
549 AMERICAN STANDARD COMPANIES INCORPORATED+ 62,449
2,813 APPLE COMPUTER INCORPORATED+ 76,092
12,795 APPLIED MATERIALS INCORPORATED+ 273,557
2,548 BAKER HUGHES INCORPORATED 92,951
596 BLACK & DECKER CORPORATION 33,936
2,642 CATERPILLAR INCORPORATED 208,903
52,298 CISCO SYSTEMS INCORPORATED+ 1,230,049
325 CUMMINS INCORPORATED 18,996
1,852 DEERE & COMPANY 128,362
19,483 DELL INCORPORATED+ 655,018
1,546 DOVER CORPORATION 59,938
18,403 EMC CORPORATION+ 250,465
2,849 GATEWAY INCORPORATED+ 15,043
1,334 INGERSOLL-RAND COMPANY CLASS A 90,245
977 LEXMARK INTERNATIONAL INCORPORATED+ 89,884
956 PALL CORPORATION 21,692
902 PARKER HANNIFIN CORPORATION 50,963
1,777 PITNEY BOWES INCORPORATED 75,718
37
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
616 STANLEY WORKS $ 26,291
1,759 SYMBOL TECHNOLOGIES INCORPORATED 24,274
3,972,935
----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.89%
2,123 ACE LIMITED 90,567
2,386 AON CORPORATION 66,593
1,233 HUMANA INCORPORATED+ 23,452
1,073 JEFFERSON-PILOT CORPORATION 59,026
4,034 MARSH & MCLENNAN COMPANIES INCORPORATED 186,774
2,056 MEDCO HEALTH SOLUTIONS INCORPORATED+ 69,904
5,784 METLIFE INCORPORATED 206,373
2,252 UNUMPROVIDENT CORPORATION 32,947
735,636
----------
INSURANCE CARRIERS - 4.84%
1,166 AETNA INCORPORATED 104,614
3,902 AFLAC INCORPORATED 156,626
5,353 ALLSTATE CORPORATION 243,348
813 AMBAC FINANCIAL GROUP INCORPORATED 59,983
19,852 AMERICAN INTERNATIONAL GROUP INCORPORATED 1,416,440
1,052 ANTHEM INCORPORATED+ 95,353
1,428 CHUBB CORPORATION 99,303
1,072 CIGNA CORPORATION 63,270
1,220 CINCINNATI FINANCIAL CORPORATION 53,009
2,216 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 141,159
2,201 JOHN HANCOCK FINANCIAL SERVICES INCORPORATED 96,162
1,354 LINCOLN NATIONAL CORPORATION 64,071
1,411 LOEWS CORPORATION 83,334
1,096 MBIA INCORPORATED 68,719
749 MGIC INVESTMENT CORPORATION 48,108
2,440 PRINCIPAL FINANCIAL GROUP INCORPORATED 86,937
1,650 PROGRESSIVE CORPORATION 144,540
4,112 PRUDENTIAL FINANCIAL INCORPORATED 184,135
1,054 SAFECO CORPORATION 45,501
1,734 ST PAUL COMPANIES INCORPORATED 69,377
861 TORCHMARK CORPORATION 46,313
7,646 TRAVELERS PROPERTY CASUALTY CORPORATION CLASS B 132,047
4,762 UNITEDHEALTH GROUP INCORPORATED 306,863
1,180 WELLPOINT HEALTH NETWORKS INCORPORATED+ 134,190
1,044 XL CAPITAL LIMITED CLASS A 79,386
4,022,788
----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.10%
1,930 GEORGIA-PACIFIC CORPORATION 65,022
805 LOUISIANA-PACIFIC CORPORATION 20,769
85,791
----------
38
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.88%
3,618 AGILENT TECHNOLOGIES INCORPORATED+ $ 114,437
998 ALLERGAN INCORPORATED 83,992
1,570 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 31,055
398 BAUSCH & LOMB INCORPORATED 23,868
4,644 BAXTER INTERNATIONAL INCORPORATED 143,453
1,922 BECTON DICKINSON & COMPANY 93,179
1,946 BIOMET INCORPORATED 74,649
6,233 BOSTON SCIENTIFIC CORPORATION+ 264,154
394 C.R. BARD INCORPORATED 38,470
1,171 DANAHER CORPORATION 109,336
2,180 EASTMAN KODAK COMPANY 57,051
2,370 GUIDANT CORPORATION 150,187
9,224 MEDTRONIC INCORPORATED 440,446
371 MILLIPORE CORPORATION+ 19,062
965 PERKINELMER INCORPORATED 19,966
3,167 RAYTHEON COMPANY 99,254
1,423 ROCKWELL AUTOMATION INCORPORATED 49,335
1,312 ST JUDE MEDICAL INCORPORATED+ 94,595
1,517 STRYKER CORPORATION 134,300
644 TEKTRONIX INCORPORATED 21,065
1,455 TERADYNE INCORPORATED+ 34,673
1,260 THERMO ELECTRON CORPORATION+ 35,633
923 WATERS CORPORATION+ 37,695
6,070 XEROX CORPORATION+ 88,440
1,840 ZIMMER HOLDINGS INCORPORATED+ 135,755
2,394,050
----------
METAL MINING - 0.32%
1,491 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 58,283
3,287 NEWMONT MINING CORPORATION 153,273
705 PHELPS DODGE CORPORATION+ 57,570
269,126
----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.04%
773 VULCAN MATERIALS COMPANY 36,671
----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.84%
1,156 EATON CORPORATION 64,956
1,327 HASBRO INCORPORATED 28,862
23,214 HEWLETT-PACKARD COMPANY 530,208
702 ITT INDUSTRIES INCORPORATED 53,584
22,583 JOHNSON & JOHNSON 1,145,410
3,271 MATTEL INCORPORATED 60,317
1,115 TIFFANY & COMPANY 42,559
15,218 TYCO INTERNATIONAL LIMITED 435,996
2,361,892
----------
39
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 3.23%
3,485 COSTCO WHOLESALE CORPORATION+ $ 130,897
3,016 CVS CORPORATION 106,465
634 DILLARDS INCORPORATED CLASS A 12,147
590 EXPRESS SCRIPTS INCORPORATED+ 44,008
2,363 OFFICE DEPOT INCORPORATED+ 44,472
3,799 STAPLES INCORPORATED 96,457
1,624 TOYS R US INCORPORATED+ 27,283
32,932 WAL-MART STORES INCORPORATED 1,965,711
7,798 WALGREEN COMPANY 256,944
2,684,384
----------
MOTION PICTURES - 1.17%
34,645 TIME WARNER INCORPORATED+ 584,115
15,581 WALT DISNEY COMPANY 389,369
973,484
----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.72%
8,591 UNITED PARCEL SERVICE INCORPORATED CLASS B 599,995
----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.50%
9,787 AMERICAN EXPRESS COMPANY 507,456
1,757 CAPITAL ONE FINANCIAL CORPORATION 132,530
1,401 COUNTRYWIDE FINANCIAL CORPORATION 134,356
7,393 FANNIE MAE 549,670
5,238 FREDDIE MAC 309,356
9,722 MBNA CORPORATION 268,619
2,208 PROVIDIAN FINANCIAL CORPORATION+ 28,925
3,430 SLM CORPORATION 143,545
2,074,457
----------
OIL & GAS EXTRACTION - 1.57%
1,914 ANADARKO PETROLEUM CORPORATION 99,260
2,466 APACHE CORPORATION 106,457
1,211 BJ SERVICES COMPANY+ 52,400
1,505 BURLINGTON RESOURCES INCORPORATED 95,763
1,769 DEVON ENERGY CORPORATION 102,867
875 EOG RESOURCES INCORPORATED 40,154
3,333 HALLIBURTON COMPANY 101,290
767 KERR-MCGEE CORPORATION 39,501
1,115 NABORS INDUSTRIES LIMITED+ 51,011
1,021 NOBLE CORPORATION+ 39,227
2,953 OCCIDENTAL PETROLEUM CORPORATION 135,986
792 ROWAN COMPANIES INCORPORATED+ 16,703
4,479 SCHLUMBERGER LIMITED 285,984
2,434 TRANSOCEAN INCORPORATED+ 67,884
1,970 UNOCAL CORPORATION 73,442
1,307,929
----------
40
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS - 0.64%
808 BEMIS COMPANY INCORPORATED $ 21,008
663 BOISE CASCADE CORPORATION 22,973
3,656 INTERNATIONAL PAPER COMPANY 154,502
3,816 KIMBERLY-CLARK CORPORATION 240,790
1,530 MEADWESTVACO CORPORATION 43,284
1,196 PACTIV CORPORATION+ 26,611
416 TEMPLE-INLAND INCORPORATED 26,349
535,517
----------
PERSONAL SERVICES - 0.15%
1,301 CINTAS CORPORATION 56,580
1,356 H & R BLOCK INCORPORATED 69,197
125,777
----------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.03%
683 AMERADA HESS CORPORATION 44,586
528 ASHLAND INCORPORATED 24,547
8,140 CHEVRONTEXACO CORPORATION 714,529
5,206 CONOCOPHILLIPS 363,431
49,899 EXXON MOBIL CORPORATION 2,075,299
2,589 MARATHON OIL CORPORATION 87,172
587 SUNOCO INCORPORATED 36,617
3,346,181
----------
PRIMARY METAL INDUSTRIES - 0.42%
6,622 ALCOA INCORPORATED 229,717
613 ALLEGHENY TECHNOLOGIES INCORPORATED 7,417
954 ENGELHARD CORPORATION 28,515
595 NUCOR CORPORATION 36,581
861 UNITED STATES STEEL CORPORATION 32,089
657 WORTHINGTON INDUSTRIES INCORPORATED 12,595
346,914
----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.38%
510 AMERICAN GREETINGS CORPORATION CLASS A+ 11,613
620 DOW JONES & Company Incorporated 29,704
2,062 GANNETT COMPANY INCORPORATED 181,745
607 KNIGHT-RIDDER INCORPORATED 44,463
1,456 MCGRAW-HILL COMPANIES INCORPORATED 110,860
381 MEREDITH CORPORATION 19,263
1,140 NEW YORK TIMES COMPANY CLASS A 50,388
1,630 RR DONNELLEY & SONS COMPANY 49,307
2,512 TRIBUNE COMPANY 126,705
13,310 VIACOM INCORPORATED CLASS B 521,885
1,145,933
----------
41
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RAILROAD TRANSPORTATION - 0.39%
2,830 BURLINGTON NORTHERN SANTA FE CORPORATION $ 89,145
1,628 CSX CORPORATION 49,312
2,975 NORFOLK SOUTHERN CORPORATION 65,718
1,969 UNION PACIFIC CORPORATION 117,786
321,961
----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.28%
561 COOPER TIRE & RUBBER COMPANY 11,304
1,334 GOODYEAR TIRE & RUBBER COMPANY+ 11,392
2,002 NIKE INCORPORATED CLASS B 155,896
448 REEBOK INTERNATIONAL LIMITED 18,525
646 SEALED AIR CORPORATION+ 32,126
229,243
----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.22%
789 BEAR STEARNS COMPANIES INCORPORATED 69,180
10,322 CHARLES SCHWAB CORPORATION 119,838
826 FEDERATED INVESTORS INCORPORATED CLASS B 25,961
1,897 FRANKLIN RESOURCES INCORPORATED 105,625
3,677 GOLDMAN SACHS GROUP INCORPORATED 383,695
2,109 LEHMAN BROTHERS HOLDINGS INCORPORATED 174,773
7,383 MERRILL LYNCH & COMPANY INCORPORATED 439,732
8,347 MORGAN STANLEY 478,283
957 T ROWE PRICE GROUP INCORPORATED 51,515
1,848,602
----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.14%
10,256 CORNING INCORPORATED+ 114,662
----------
TOBACCO PRODUCTS - 1.12%
15,574 ALTRIA GROUP INCORPORATED 848,004
643 RJ REYNOLDS TOBACCO HOLDINGS INCORPORATED 38,902
1,262 UST INCORPORATED 45,558
932,464
----------
TRANSPORTATION BY AIR - 0.32%
939 DELTA AIR LINES INCORPORATED+ 7,437
2,270 FEDEX CORPORATION 170,613
6,006 SOUTHWEST AIRLINES COMPANY 85,345
263,395
----------
TRANSPORTATION EQUIPMENT - 2.61%
6,410 BOEING COMPANY 263,259
712 BRUNSWICK CORPORATION 29,071
42
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (CONTINUED)
1,132 DANA CORPORATION $ 22,481
4,263 DELPHI CORPORATION 42,459
13,935 FORD MOTOR COMPANY 189,098
1,508 GENERAL DYNAMICS CORPORATION 134,710
4,276 GENERAL MOTORS CORPORATION 201,400
1,323 GENUINE PARTS COMPANY 43,289
894 GOODRICH CORPORATION 25,095
2,305 HARLEY-DAVIDSON INCORPORATED 122,949
6,534 HONEYWELL INTERNATIONAL INCORPORATED 221,176
1,434 JOHNSON CONTROLS INCORPORATED 84,821
3,430 LOCKHEED MARTIN CORPORATION 156,545
524 NAVISTAR INTERNATIONAL CORPORATION+ 24,025
1,420 NORTHROP GRUMMAN CORPORATION 139,756
1,331 PACCAR INCORPORATED 74,855
1,048 TEXTRON INCORPORATED 55,701
3,923 UNITED TECHNOLOGIES CORPORATION 338,555
2,169,245
-----------
TRANSPORTATION SERVICES - 0.03%
1,066 SABRE HOLDINGS CORPORATION 26,448
-----------
WATER TRANSPORTATION - 0.26%
4,793 CARNIVAL CORPORATION 215,254
-----------
WHOLESALE TRADE NON-DURABLE GOODS - 0.82%
854 AMERISOURCEBERGEN CORPORATION 46,697
923 BROWN-FORMAN CORPORATION CLASS B 43,990
3,310 CARDINAL HEALTH INCORPORATED 228,059
2,214 MCKESSON CORPORATION 66,619
3,365 SAFEWAY INCORPORATED+ 69,252
1,022 SUPERVALU INCORPORATED 31,212
4,905 SYSCO CORPORATION 191,540
677,369
-----------
WHOLESALE TRADE-DURABLE GOODS - 0.05%
994 VISTEON CORPORATION 9,513
694 WW GRAINGER INCORPORATED 33,312
42,825
-----------
TOTAL COMMON STOCK (COST $71,380,612) 79,598,798
-----------
COLLATERAL FOR SECURITIES LENDING - 9.02%
COLLATERAL FOR SECURITY LENDING 7,495,478
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $7,495,478) 7,495,478
-----------
43
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX ALLOCATION FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 4.27%
MUTUAL FUND - 3.82%
3,176,921 WELLS FARGO MONEY MARKET TRUST~ $ 3,176,921
-----------
PRINCIPAL INTEREST RATE MATURITY DATE
US TREASURY BILLS - 0.45%
95,000 US TREASURY BILL#^ 0.97 04/08/2004 94,984
135,000 US TREASURY BILL#^ 0.95 05/13/2004 134,851
145,000 US TREASURY BILL#^ 0.97 08/12/2004 144,480
374,315
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $3,551,234) 3,551,236
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST $82,427,324)* 109.08% $90,645,512
OTHER ASSETS AND LIABILITIES, NET (9.08) (7,547,756)
------ -----------
TOTAL NET ASSETS 100.00% $83,097,756
====== ===========
+ NON-INCOME EARNING SECURITIES.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $428,756.
^ 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.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
44
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 99.32%
N/A WELLS FARGO DISCIPLINED GROWTH PORTFOLIO $ 11,148,169
N/A WELLS FARGO EQUITY INCOME PORTFOLIO 44,598,327
N/A WELLS FARGO INDEX PORTFOLIO 55,627,215
N/A WELLS FARGO INTERNATIONAL EQUITY PORTFOLIO 25,293,536
N/A WELLS FARGO LARGE CAP APPRECIATION PORTFOLIO 5,575,923
N/A WELLS FARGO LARGE CAP VALUE PORTFOLIO 11,188,003
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO 38,815,911
N/A WELLS FARGO MANAGED FIXED INCOME PORTFOLIO 123,907,502
N/A WELLS FARGO OVERSEAS PORTFOLIO 8,478,313
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO 7,492,219
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 7,430,168
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 7,454,962
N/A WELLS FARGO STABLE INCOME PORTFOLIO 82,710,077
N/A WELLS FARGO STRATEGIC VALUE BOND PORTFOLIO 41,371,914
N/A WELLS FARGO TACTICAL MATURITY BOND PORTFOLIO 82,563,813
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $480,729,685) 553,656,052
------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 0.78%
US TREASURY BILLS - 0.78%
$ 40,000 US TREASURY BILL#^ 0.93% 05/13/2004 39,956
3,850,000 US TREASURY BILL#^ 0.95 05/13/2004 3,845,768
160,000 US TREASURY BILL#^ 1.00 05/13/2004 159,824
135,000 US TREASURY BILL#^ 0.95 08/12/2004 134,516
150,000 US TREASURY BILL#^ 0.97 08/12/2004 149,462
TOTAL SHORT-TERM INVESTMENTS (COST $4,329,527) 4,329,526
------------
TOTAL INVESTMENTS IN MASTER PORTFOLIOS AND SECURITIES
(COST $485,059,212) 100.10% $557,985,578
OTHER ASSETS AND LIABILITIES, NET (0.10) (546,971)
------ ------------
TOTAL NET ASSETS 100.00% $557,438,607
====== ============
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO
MATURITY.
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
45
WELLS FARGO ASSET ALLOCATION FUNDS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC GROWTH ALLOCATION FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 99.01%
N/A WELLS FARGO DISCIPLINED GROWTH PORTFOLIO $ 6,582,243
N/A WELLS FARGO EQUITY INCOME PORTFOLIO 26,094,677
N/A WELLS FARGO INDEX PORTFOLIO 32,619,417
N/A WELLS FARGO INTERNATIONAL EQUITY PORTFOLIO 14,793,468
N/A WELLS FARGO LARGE CAP APPRECIATION PORTFOLIO 3,270,948
N/A WELLS FARGO LARGE CAP VALUE PORTFOLIO 6,539,941
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO 22,779,452
N/A WELLS FARGO MANAGED FIXED INCOME PORTFOLIO 16,363,261
N/A WELLS FARGO OVERSEAS PORTFOLIO 4,956,043
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO 4,421,677
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 4,408,279
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 4,437,608
N/A WELLS FARGO STRATEGIC VALUE BOND PORTFOLIO 5,458,430
N/A WELLS FARGO TACTICAL MATURITY BOND PORTFOLIO 10,915,810
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $145,952,849) 163,641,254
------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 1.15%
US TREASURY BILLS - 1.15%
$ 10,000 US TREASURY BILL#^ 0.97% 04/08/2004 9,998
115,000 US TREASURY BILL#^ 0.93 05/13/2004 114,874
1,420,000 US TREASURY BILL#^ 0.95 05/13/2004 1,418,439
145,000 US TREASURY BILL#^ 1.00 05/13/2004 144,841
35,000 US TREASURY BILL#^ 0.93 08/12/2004 34,874
55,000 US TREASURY BILL#^ 0.95 08/12/2004 54,803
125,000 US TREASURY BILL#^ 0.97 08/12/2004 124,552
TOTAL SHORT-TERM INVESTMENTS (COST $1,902,368) 1,902,381
------------
TOTAL INVESTMENTS IN MASTER PORTFOLIOS AND SECURITIES
(COST $147,855,217) 100.16% $165,543,635
OTHER ASSETS AND LIABILITIES, NET (0.16) (259,907)
------ ------------
TOTAL NET ASSETS 100.00% $165,283,728
====== ============
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO
MATURITY.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
PORTFOLIO OF INVESTMENTS -- WELLS FARGO ASSET ALLOCATION FUNDS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 99.68%
N/A WELLS FARGO DISCIPLINED GROWTH PORTFOLIO $ 4,049,307
N/A WELLS FARGO EQUITY INCOME PORTFOLIO 16,128,843
N/A WELLS FARGO INDEX PORTFOLIO 20,134,953
N/A WELLS FARGO INTERNATIONAL EQUITY PORTFOLIO 9,092,856
N/A WELLS FARGO LARGE CAP APPRECIATION PORTFOLIO 2,016,004
N/A WELLS FARGO LARGE CAP VALUE PORTFOLIO 4,046,330
N/A WELLS FARGO LARGE COMPANY GROWTH PORTFOLIO 14,043,922
N/A WELLS FARGO MANAGED FIXED INCOME PORTFOLIO 108,977,396
N/A WELLS FARGO OVERSEAS PORTFOLIO 3,039,981
N/A WELLS FARGO SMALL CAP INDEX PORTFOLIO 2,729,058
N/A WELLS FARGO SMALL COMPANY GROWTH PORTFOLIO 2,722,235
N/A WELLS FARGO SMALL COMPANY VALUE PORTFOLIO 2,715,713
N/A WELLS FARGO STABLE INCOME PORTFOLIO 99,158,443
N/A WELLS FARGO STRATEGIC VALUE BOND PORTFOLIO 36,376,177
N/A WELLS FARGO TACTICAL MATURITY BOND PORTFOLIO 72,610,984
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $371,620,342) 397,842,202
------------
PRINCIPAL INTEREST RATE MATURITY DATE
SHORT-TERM INVESTMENTS - 0.39%
US TREASURY BILLS - 0.39%
$1,255,000 US TREASURY BILL#^ 0.95% 05/13/2004 1,253,620
135,000 US TREASURY BILL#^ 1.00 05/13/2004 134,852
80,000 US TREASURY BILL#^ 0.95 08/12/2004 79,713
75,000 US TREASURY BILL#^ 0.97 08/12/2004 74,731
TOTAL SHORT-TERM INVESTMENTS (COST $1,542,902) 1,542,916
------------
TOTAL INVESTMENTS IN MASTER PORTFOLIOS AND SECURITIES
(COST $373,163,244) 100.07% $399,385,118
OTHER ASSETS AND LIABILITIES, NET (0.07) (278,840)
------ ------------
TOTAL NET ASSETS 100.00% $399,106,278
====== ============
# SECURITY PLEDGED AS COLLATERAL FOR FUTURES TRANSACTIONS.
^ ZERO COUPON/STEPPED COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO
MATURITY.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
47
WELLS FARGO ASSET ALLOCATION FUNDS STATEMENTS OF ASSETS AND LIABILITIES --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET GROWTH
ALLOCATION FUND BALANCED FUND
--------------- --------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................................. $1,142,131,859 $1,761,897,431
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ....................................... 534,334,221 0
INVESTMENTS IN AFFILIATES ....................................................... 54,739,265 0
-------------- --------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) .................................. 1,731,205,345 1,761,897,431
-------------- --------------
CASH ............................................................................ 50,000 0
RECEIVABLE FOR FUND SHARES ISSUED ............................................... 362,971 494,504
RECEIVABLE FOR INVESTMENTS SOLD ................................................. 37,840 0
RECEIVABLE FOR DIVIDENDS AND INTEREST ........................................... 5,981,673 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ............................... 0 0
PREPAID EXPENSES AND OTHER ASSETS ............................................... 0 0
-------------- --------------
TOTAL ASSETS ....................................................................... 1,737,637,829 1,762,391,935
-------------- --------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ......................... 2,005,425 1,839,050
PAYABLE FOR FUND SHARES REDEEMED ................................................ 839,698 244,616
PAYABLE FOR INVESTMENTS PURCHASED ............................................... 1,030 0
DIVIDENDS PAYABLE ............................................................... 87 2,443
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ........................... 872,110 739,410
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ......................................... 437,666 116,732
PAYABLE FOR SECURITIES LOANED (NOTE 2) .......................................... 534,334,221 0
ACCRUED EXPENSES AND OTHER LIABILITIES .......................................... 526,253 160,144
TOTAL LIABILITIES .................................................................. 539,016,490 3,102,395
-------------- --------------
TOTAL NET ASSETS ................................................................... $1,198,621,339 $1,759,289,540
-------------- --------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................................. $1,265,950,384 $1,545,476,229
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ...................................... 886,784 6,812,317
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... (29,463,683) 2,513,544
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES
AND TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES .. (26,043,667) 215,251,723
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ........................... (12,708,479) (10,764,273)
-------------- --------------
TOTAL NET ASSETS ................................................................... $1,198,621,339 $1,759,289,540
-------------- --------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................ $ 890,246,211 $ 55,751,662
SHARES OUTSTANDING - CLASS A .................................................... 46,581,184 1,798,449
NET ASSET VALUE PER SHARE - CLASS A ............................................. $ 19.11 $ 31.00
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ................................... $ 20.28 $ 32.89
NET ASSETS - CLASS B ............................................................ $ 257,458,540 $ 94,118,906
SHARES OUTSTANDING - CLASS B .................................................... 22,177,509 3,315,691
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .......................... $ 11.61 $ 28.39
NET ASSETS - CLASS C ............................................................ $ 30,524,128 $ 28,437,637
SHARES OUTSTANDING - CLASS C .................................................... 2,625,459 1,002,340
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .......................... $ 11.63 $ 28.37
NET ASSETS - INSTITUTIONAL CLASS ................................................ $ 20,392,460 $1,580,981,335
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................................ 1,065,338 54,835,825
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS .............. $ 19.14 $ 28.83
-------------- --------------
INVESTMENTS AT COST ................................................................ $1,757,249,012 $1,546,645,708
============== ==============
SECURITIES ON LOAN, AT MARKET VALUE ................................................ $ 519,912,021 $ 0
============== ==============
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
STATEMENTS OF ASSETS AND LIABILITIES WELLS FARGO ASSET ALLOCATION FUNDS
- -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX MODERATE
ALLOCATION FUND BALANCED FUND
--------------- -------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................................. $79,243,487 $557,985,578
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ....................................... 7,495,478 0
INVESTMENTS IN AFFILIATES ....................................................... 3,906,547 0
----------- ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) .................................. 90,645,512 557,985,578
----------- ------------
CASH ............................................................................ 50,001 0
RECEIVABLE FOR FUND SHARES ISSUED ............................................... 3,164 119,994
RECEIVABLE FOR INVESTMENTS SOLD ................................................. 4,362 0
RECEIVABLE FOR DIVIDENDS AND INTEREST ........................................... 100,177 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ............................... 32,579 0
PREPAID EXPENSES AND OTHER ASSETS ............................................... 0 0
----------- ------------
TOTAL ASSETS ....................................................................... 90,835,795 558,105,572
----------- ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ......................... 3,600 392,963
PAYABLE FOR FUND SHARES REDEEMED ................................................ 120,399 11,255
PAYABLE FOR INVESTMENTS PURCHASED ............................................... 0 0
DIVIDENDS PAYABLE ............................................................... 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ........................... 0 233,241
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ......................................... 43,124 2,155
PAYABLE FOR SECURITIES LOANED (NOTE 2) .......................................... 7,495,478 0
ACCRUED EXPENSES AND OTHER LIABILITIES .......................................... 75,438 27,351
TOTAL LIABILITIES .................................................................. 7,738,039 666,965
----------- ------------
TOTAL NET ASSETS ................................................................... $83,097,756 $557,438,607
----------- ------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................................. $78,853,787 $472,255,129
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ...................................... 46,528 2,824,187
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... (3,975,572) 11,698,110
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES
AND TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES .. 8,218,188 72,926,366
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ........................... (45,175) (2,265,185)
----------- ------------
TOTAL NET ASSETS ................................................................... $83,097,756 $557,438,607
----------- ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................ $46,629,844 $ 601,260
SHARES OUTSTANDING - CLASS A .................................................... 3,187,078 27,409
NET ASSET VALUE PER SHARE - CLASS A ............................................. $ 14.63 $ 21.94
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ................................... $ 15.52 $ 23.28
NET ASSETS - CLASS B ............................................................ $12,185,027 $ 222,557
SHARES OUTSTANDING - CLASS B .................................................... 697,728 10,158
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .......................... $ 17.46 $ 21.91
NET ASSETS - CLASS C ............................................................ $24,282,885 $ 330,697
SHARES OUTSTANDING - CLASS C .................................................... 1,389,875 15,092
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .......................... $ 17.47 $ 21.91
NET ASSETS - INSTITUTIONAL CLASS ................................................ N/A $556,284,093
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................................ N/A 25,348,321
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS .............. N/A $ 21.95
----------- ------------
INVESTMENTS AT COST ................................................................ $82,427,324 $485,059,212
=========== ============
SECURITIES ON LOAN, AT MARKET VALUE ................................................. $ 7,213,847 $ 0
=========== ============
STRATEGIC GROWTH STRATEGIC
ALLOCATION FUND INCOME FUND
---------------- ------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................................. $165,543,635 $399,385,118
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ....................................... 0 0
INVESTMENTS IN AFFILIATES ....................................................... 0 0
------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) .................................. 165,543,635 399,385,118
------------ ------------
CASH ............................................................................ 0 0
RECEIVABLE FOR FUND SHARES ISSUED ............................................... 1,374 1,657
RECEIVABLE FOR INVESTMENTS SOLD ................................................. 0 0
RECEIVABLE FOR DIVIDENDS AND INTEREST ........................................... 0 0
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ............................... 0 0
PREPAID EXPENSES AND OTHER ASSETS ............................................... 0 40,434
------------ ------------
TOTAL ASSETS ....................................................................... 165,545,009 399,427,209
------------ ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ......................... 173,138 140,537
PAYABLE FOR FUND SHARES REDEEMED ................................................ 0 16,600
PAYABLE FOR INVESTMENTS PURCHASED ............................................... 0 0
DIVIDENDS PAYABLE ............................................................... 0 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ........................... 68,350 160,028
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ......................................... 2,050 3,766
PAYABLE FOR SECURITIES LOANED (NOTE 2) .......................................... 0 0
ACCRUED EXPENSES AND OTHER LIABILITIES .......................................... 17,743 0
TOTAL LIABILITIES .................................................................. 261,281 320,931
------------ ------------
TOTAL NET ASSETS ................................................................... $165,283,728 $399,106,278
------------ ------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................................. $155,179,873 $367,016,289
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ...................................... 447,846 2,503,133
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... (7,023,657) 4,154,775
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES
AND TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES .. 17,688,418 26,221,874
NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES ........................... (1,008,752) (789,793)
------------ ------------
TOTAL NET ASSETS ................................................................... $165,283,728 $399,106,278
------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................ N/A N/A
SHARES OUTSTANDING - CLASS A .................................................... N/A N/A
NET ASSET VALUE PER SHARE - CLASS A ............................................. N/A N/A
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ................................... N/A N/A
NET ASSETS - CLASS B ............................................................ N/A N/A
SHARES OUTSTANDING - CLASS B .................................................... N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .......................... N/A N/A
NET ASSETS - CLASS C ............................................................ N/A N/A
SHARES OUTSTANDING - CLASS C .................................................... N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .......................... N/A N/A
NET ASSETS - INSTITUTIONAL CLASS ................................................ $165,283,728 $399,106,278
SHARES OUTSTANDING - INSTITUTIONAL CLASS ........................................ 12,414,105 20,404,872
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS .............. $ 13.31 $ 19.56
------------ ------------
INVESTMENTS AT COST ................................................................ $147,855,217 $373,163,244
============ ============
SECURITIES ON LOAN, AT MARKET VALUE ................................................ $ 0 $ 0
============ ============
49
WELLS FARGO ASSET ALLOCATION FUNDS STATEMENTS OF OPERATIONS -- FOR THE
SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSET GROWTH
ALLOCATION FUND BALANCED FUND
- -----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ........................................................ $ 5,958,482 $ 8,936,549
INTEREST ............................................................. 11,691,178 12,853,405
INCOME FROM AFFILIATED SECURITIES .................................... 264,256 0
SECURITIES LENDING INCOME ............................................ 289,171 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ................. 0 (3,536,994)
------------ ------------
TOTAL INVESTMENT INCOME ................................................. 18,203,087 18,252,960
------------ ------------
EXPENSES
ADVISORY FEES ........................................................ 4,492,442 2,147,438
ADMINISTRATION FEES
FUND LEVEL ........................................................ 299,496 429,488
CLASS A ........................................................... 1,222,257 69,986
CLASS B ........................................................... 385,624 125,714
CLASS C ........................................................... 41,796 38,371
INSTITUTIONAL CLASS ............................................... 19,643 1,550,757
CUSTODY FEES ......................................................... 119,798 0
SHAREHOLDER SERVICING FEES ........................................... 1,482,748 208,992
ACCOUNTING FEES ...................................................... 2,169 58,988
DISTRIBUTION FEES (NOTE 3) ...........................................
CLASS B ........................................................... 1,032,922 336,734
CLASS C ........................................................... 111,955 102,778
AUDIT FEES ........................................................... 4,534 4,262
LEGAL FEES ........................................................... 314 8,969
REGISTRATION FEES .................................................... 300 51,073
SHAREHOLDER REPORTS .................................................. 727 74,013
TRUSTEES' FEES ....................................................... 3,195 3,195
OTHER FEES AND EXPENSES .............................................. 30 21,918
------------ ------------
TOTAL EXPENSES .......................................................... 9,219,950 5,232,676
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ......................... (1,211,060) (33,618)
NET EXPENSES ......................................................... 8,008,890 5,199,058
------------ ------------
NET INVESTMENT INCOME (LOSS) ............................................ 10,194,197 13,053,902
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 1,807,530 116
FUTURES TRANSACTIONS ................................................. 12,494,405 6,880,080
AFFILIATED SECURITIES ................................................ 263,200 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 42,304,644
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ................ 0 709,510
------------ ------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................... 14,565,135 49,894,350
------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 90,883,931 0
FUTURES TRANSACTIONS ................................................. 15,940,195 12,844,414
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 112,638,831
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED
FROM MASTER PORTFOLIOS ............................................ 0 (608,351)
------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 106,824,126 124,874,894
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .................. 121,389,261 174,769,244
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... $131,583,458 $187,823,146
============ ============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ................................. $ 0 $ 156,121
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
STATEMENTS OF OPERATIONS -- FOR THE WELLS FARGO ASSET ALLOCATION FUNDS
SIX MONTHS ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX MODERATE
ALLOCATION FUND BALANCED FUND
- -----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ........................................................ $ 650,810 $ 1,848,096
INTEREST ............................................................. 1,978 6,119,599
INCOME FROM AFFILIATED SECURITIES .................................... 39,817 0
SECURITIES LENDING INCOME ............................................ 2,805 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ................. 0 (1,005,743)
---------- ------------
TOTAL INVESTMENT INCOME ................................................. 695,410 6,961,952
---------- ------------
EXPENSES
ADVISORY FEES ........................................................ 306,367 677,949
ADMINISTRATION FEES
FUND LEVEL ........................................................ 20,424 135,590
CLASS A ........................................................... 62,661 89
CLASS B ........................................................... 18,069 56
CLASS C ........................................................... 33,647 61
INSTITUTIONAL CLASS ............................................... N/A 542,213
CUSTODY FEES ......................................................... 8,170 0
SHAREHOLDER SERVICING FEES ........................................... 102,122 184
ACCOUNTING FEES ...................................................... 12,355 25,484
DISTRIBUTION FEES (NOTE 3) ...........................................
CLASS B ........................................................... 48,399 149
CLASS C ........................................................... 90,126 163
AUDIT FEES ........................................................... 8,323 4,262
LEGAL FEES ........................................................... 1,087 8,969
REGISTRATION FEES .................................................... 14,391 8,407
SHAREHOLDER REPORTS .................................................. 3,439 33,507
TRUSTEES' FEES ....................................................... 3,195 3,195
OTHER FEES AND EXPENSES .............................................. 2,743 10,678
---------- ------------
TOTAL EXPENSES .......................................................... 735,518 1,450,956
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ......................... (86,627) (14,698)
NET EXPENSES ......................................................... 648,891 1,436,258
---------- ------------
NET INVESTMENT INCOME (LOSS) ............................................ 46,519 5,525,694
---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 132,396 27
FUTURES TRANSACTIONS ................................................. 570,891 1,550,828
AFFILIATED SECURITIES ................................................ 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 11,789,926
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ................ 0 270,793
---------- ------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................... 703,287 13,611,574
---------- ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 8,848,908 0
FUTURES TRANSACTIONS ................................................. 216,501 2,822,778
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 0 19,902,928
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED
FROM MASTER PORTFOLIOS ............................................ 0 104,362
---------- ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 9,065,409 22,830,068
---------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .................. 9,768,696 36,441,642
---------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... $9,815,215 $ 41,967,336
========== ============
(1) NET OF FOREIGN WITHHOLDING TAXES OF ................................. $ 0 $ 30,434
STRATEGIC GROWTH STRATEGIC
ALLOCATION FUND INCOME FUND
- ----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ........................................................ $ 945,652 $ 763,759
INTEREST ............................................................. 657,431 5,653,669
INCOME FROM AFFILIATED SECURITIES .................................... 0 0
SECURITIES LENDING INCOME ............................................ 0 0
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ................. (339,218) (651,718)
----------- -----------
TOTAL INVESTMENT INCOME ................................................. 1,263,865 5,765,710
----------- -----------
EXPENSES
ADVISORY FEES ........................................................ 190,760 484,713
ADMINISTRATION FEES
FUND LEVEL ........................................................ 38,152 96,943
CLASS A ........................................................... N/A N/A
CLASS B ........................................................... N/A N/A
CLASS C ........................................................... N/A N/A
INSTITUTIONAL CLASS ............................................... 152,608 387,771
CUSTODY FEES ......................................................... 0 0
SHAREHOLDER SERVICING FEES ........................................... 0 0
ACCOUNTING FEES ...................................................... 14,376 21,078
DISTRIBUTION FEES (NOTE 3) ...........................................
CLASS B ........................................................... N/A N/A
CLASS C ........................................................... N/A N/A
AUDIT FEES ........................................................... 4,262 4,262
LEGAL FEES ........................................................... 8,967 8,969
REGISTRATION FEES .................................................... 9,589 9,655
SHAREHOLDER REPORTS .................................................. 5,655 18,040
TRUSTEES' FEES ....................................................... 3,195 3,195
OTHER FEES AND EXPENSES .............................................. 2,136 5,228
----------- -----------
TOTAL EXPENSES .......................................................... 429,700 1,039,854
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ......................... (5,606) (42,990)
NET EXPENSES ......................................................... 424,094 996,864
----------- -----------
NET INVESTMENT INCOME (LOSS) ............................................ 839,771 4,768,846
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 0 0
FUTURES TRANSACTIONS ................................................. 613,296 569,015
AFFILIATED SECURITIES ................................................ 0 0
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 3,810,352 4,060,932
FUTURES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ................ 60,038 81,878
----------- -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................... 4,483,686 4,711,825
----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 0 14
FUTURES TRANSACTIONS ................................................. 977,698 1,086,932
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 12,322,665 8,850,219
FORWARDS, FUTURES, OPTIONS, SWAPS AND SHORT SALES ALLOCATED
FROM MASTER PORTFOLIOS ............................................ (83,977) 36,140
----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 13,216,386 9,973,305
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .................. 17,700,072 14,685,130
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... $18,539,843 $19,453,976
=========== ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ................................. $ 17,631 $ 10,857
51
WELLS FARGO ASSET ALLOCATION FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ..................................... $1,164,462,536 $1,127,709,676
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 10,194,197 18,339,885
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 14,565,135 34,665,817
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 106,824,126 143,538,577
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 131,583,458 196,544,279
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .................................................. (7,906,003) (14,737,556)
CLASS B .................................................. (1,401,630) (2,971,147)
CLASS C .................................................. (162,572) (265,292)
INSTITUTIONAL CLASS ...................................... (204,267) (344,577)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .................................................. (12,231,503) (22,906)
CLASS B .................................................. (3,962,340) (9,458)
CLASS C .................................................. (423,492) (695)
INSTITUTIONAL CLASS ...................................... (275,902) (440)
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ......................... 54,992,963 66,065,651
REINVESTMENT OF DISTRIBUTIONS - CLASS A ..................... 19,647,086 14,364,251
COST OF SHARES REDEEMED - CLASS A ........................... (98,802,318) (129,658,283)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ........................ (24,162,269) (49,228,381)
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B ......................... 8,318,694 16,450,755
REINVESTMENT OF DISTRIBUTIONS - CLASS B ..................... 5,179,759 2,870,351
COST OF SHARES REDEEMED - CLASS B ........................... (61,310,221) (112,786,037)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ........................ (47,811,768) (93,464,931)
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C ......................... 3,485,640 6,694,835
REINVESTMENT OF DISTRIBUTIONS - CLASS C ..................... 524,207 234,184
COST OF SHARES REDEEMED - CLASS C ........................... (3,390,406) (6,788,870)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ........................ 619,441 140,149
-------------- --------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ............. 1,153,154 5,902,918
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ......... 457,062 333,435
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ............... (1,112,566) (5,122,538)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ............ 497,650 1,113,815
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................. (70,856,946) (141,439,348)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .......................... 34,158,803 36,752,860
-------------- --------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------
ENDING NET ASSETS .............................................. $1,198,621,339 $1,164,462,536
-------------- --------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ....................................... 2,925,955 3,971,029
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .... 1,062,851 859,174
SHARES REDEEMED - CLASS A ................................... (5,326,766) (7,944,872)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ........ (1,337,960) (3,114,669)
-------------- --------------
SHARES SOLD - CLASS B ....................................... 731,356 1,645,720
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .... 463,103 284,120
SHARES REDEEMED - CLASS B ................................... (5,379,667) (11,423,577)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ........ (4,185,208) (9,493,737)
-------------- --------------
SHARES SOLD - CLASS C ....................................... 306,685 657,730
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .... 46,770 23,017
SHARES REDEEMED - CLASS C ................................... (296,197) (688,414)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ........ 57,258 (7,667)
-------------- --------------
SHARES SOLD - INSTITUTIONAL CLASS ........................... 61,378 359,254
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS ...................................... 24,669 19,837
SHARES REDEEMED -INSTITUTIONAL CLASS ........................ (59,727) (309,065)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................................... 26,320 70,026
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................. (5,439,590) (12,546,047)
-------------- --------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .......... $ 886,784 $ 367,059
-------------- --------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ..................................... $1,565,194,103 $1,192,447,514
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 13,053,902 22,935,426
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 49,894,350 17,934,496
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 124,874,894 195,287,088
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 187,823,146 236,157,010
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .................................................. (941,448) (550,743)
CLASS B .................................................. (1,400,373) (519,995)
CLASS C .................................................. (428,334) (151,133)
INSTITUTIONAL CLASS ...................................... (34,116,060) (23,553,876)
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 ......................... 14,708,302 15,943,755
REINVESTMENT OF DISTRIBUTIONS - CLASS A ..................... 902,019 533,499
COST OF SHARES REDEEMED - CLASS A ........................... (7,691,023) (10,921,218)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ........................ 7,919,298 5,556,036
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS B ......................... 9,310,971 21,556,671
REINVESTMENT OF DISTRIBUTIONS - CLASS B ..................... 1,346,809 500,761
COST OF SHARES REDEEMED - CLASS B ........................... (5,969,970) (17,767,822)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ........................ 4,687,810 4,289,610
-------------- --------------
PROCEEDS FROM SHARES SOLD - CLASS C ......................... 3,963,306 10,547,473
REINVESTMENT OF DISTRIBUTIONS - CLASS C ..................... 402,499 141,878
COST OF SHARES REDEEMED - CLASS C ........................... (3,314,255) (7,456,401)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ........................ 1,051,550 3,232,950
-------------- --------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ............. 200,710,597 280,916,830
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ......... 33,654,807 23,140,791
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ............... (204,865,556) (155,770,891)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ............ 29,499,848 148,286,730
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................. 43,158,506 161,365,326
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .......................... 194,095,437 372,746,589
-------------- --------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------
ENDING NET ASSETS .............................................. $1,759,289,540 $1,565,194,103
-------------- --------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ....................................... 480,336 603,305
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .... 30,057 20,897
SHARES REDEEMED - CLASS A ................................... (250,844) (419,236)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ........ 259,549 204,966
-------------- --------------
SHARES SOLD - CLASS B ....................................... 332,669 902,983
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .... 48,904 21,291
SHARES REDEEMED - CLASS B ................................... (213,651) (761,897)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ........ 167,922 162,377
-------------- --------------
SHARES SOLD - CLASS C ....................................... 142,516 440,081
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .... 14,626 6,035
SHARES REDEEMED - CLASS C ................................... (119,087) (313,818)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ........ 38,055 132,298
-------------- --------------
SHARES SOLD - INSTITUTIONAL CLASS ........................... 7,046,603 11,788,991
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS ...................................... 1,206,698 974,349
SHARES REDEEMED -INSTITUTIONAL CLASS ........................ (7,136,631) (6,510,150)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................................... 1,116,670 6,253,190
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................. 1,582,196 6,752,831
-------------- --------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .......... $ 6,812,317 $ 30,644,630
-------------- --------------
INDEX ALLOCATION FUND
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ..................................... $75,933,871 $ 73,823,484
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................ 46,519 96,211
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................... 703,287 (17,596)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ........................................... 9,065,409 14,894,185
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .................................................. 9,815,215 14,972,800
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A .................................................. (8,397) (75,519)
CLASS B .................................................. 0 (4,022)
CLASS C .................................................. 0 (5,774)
INSTITUTIONAL CLASS ...................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A .................................................. 0 (60,983)
CLASS B .................................................. 0 (19,499)
CLASS C .................................................. 0 (36,891)
INSTITUTIONAL CLASS ...................................... N/A N/A
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ......................... 2,335,080 1,654,066
REINVESTMENT OF DISTRIBUTIONS - CLASS A ..................... 6,810 113,857
COST OF SHARES REDEEMED - CLASS A ........................... (1,853,542) (5,580,571)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ........................ 488,348 (3,812,648)
----------- ------------
PROCEEDS FROM SHARES SOLD - CLASS B ......................... 668,058 1,089,927
REINVESTMENT OF DISTRIBUTIONS - CLASS B ..................... 0 22,116
COST OF SHARES REDEEMED - CLASS B ........................... (2,634,404) (3,464,755)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ........................ (1,966,346) (2,352,712)
----------- ------------
PROCEEDS FROM SHARES SOLD - CLASS C ......................... 1,521,932 1,356,312
REINVESTMENT OF DISTRIBUTIONS - CLASS C ..................... 0 31,302
COST OF SHARES REDEEMED - CLASS C ........................... (2,686,867) (7,881,979)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ........................ (1,164,935) (6,494,365)
----------- ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ............. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ......... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ............... N/A N/A
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ............ N/A N/A
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................. (2,642,933) (12,659,725)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS .......................... 7,163,885 2,110,387
----------- ------------
NET ASSETS:
- ------------------------------------------------------------------------------------------------------
ENDING NET ASSETS .............................................. $83,097,756 $ 75,933,871
----------- ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ....................................... 162,124 125,744
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .... 480 9,988
SHARES REDEEMED - CLASS A ................................... (131,536) (462,955)
----------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ........ 31,068 (327,223)
----------- ------------
SHARES SOLD - CLASS B ....................................... 39,141 76,022
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .... 0 1,598
SHARES REDEEMED - CLASS B ................................... (153,825) (246,441)
----------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ........ (114,684) (168,821)
----------- ------------
SHARES SOLD - CLASS C ....................................... 89,602 93,000
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .... 0 2,259
SHARES REDEEMED - CLASS C ................................... (160,045) (566,372)
----------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ........ (70,443) (471,113)
----------- ------------
SHARES SOLD - INSTITUTIONAL CLASS ........................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS -
INSTITUTIONAL CLASS ...................................... N/A N/A
SHARES REDEEMED -INSTITUTIONAL CLASS ........................ N/A N/A
----------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................................... N/A N/A
----------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS .................................. (154,059) (967,157)
----------- ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME .......... $ 46,528 $ 8,406
----------- ------------
53
WELLS FARGO ASSET ALLOCATION FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ $512,459,742 $459,247,717
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................... 5,525,694 10,876,321
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................................ 13,611,574 15,580,074
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ............ 22,830,068 32,755,745
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................... 41,967,336 59,212,140
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ..................................................................... 0 N/A
CLASS B ..................................................................... 0 N/A
CLASS C ..................................................................... 0 N/A
INSTITUTIONAL CLASS ......................................................... (15,693,011) (15,125,044)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ..................................................................... 0 N/A
CLASS B ..................................................................... 0 N/A
CLASS C ..................................................................... 0 N/A
INSTITUTIONAL CLASS ......................................................... (5,123,328) (4,586,294)
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ............................................ 608,373 N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A ........................................ 0 N/A
COST OF SHARES REDEEMED - CLASS A .............................................. (10,100) N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
CLASS A ........................................................................ 598,273 N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS B ............................................ 246,926 N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B ........................................ 0 N/A
COST OF SHARES REDEEMED - CLASS B .............................................. (24,424) N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
CLASS B ........................................................................ 222,502 N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - CLASS C ............................................ 339,611 N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C ........................................ 0 N/A
COST OF SHARES REDEEMED - CLASS C .............................................. (10,293) N/A
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
CLASS C ........................................................................ 329,318 N/A
------------ ------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ................................ 30,050,242 68,308,317
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ............................ 20,581,479 19,415,187
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .................................. (27,953,946) (74,012,281)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS ............................................................ 22,677,775 13,711,223
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 23,827,868 13,711,223
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ............................................. 44,978,865 53,212,025
============ ============
NET ASSETS:
- ----------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ................................................................. $557,438,607 $512,459,742
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .......................................................... 27,873 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ....................... 0 N/A
SHARES REDEEMED - CLASS A ...................................................... (464) N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ........................... 27,409 N/A
------------ ------------
SHARES SOLD - CLASS B .......................................................... 11,276 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ....................... 0 N/A
SHARES REDEEMED - CLASS B ...................................................... (1,118) N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ........................... 10,158 N/A
------------ ------------
SHARES SOLD - CLASS C .......................................................... 15,564 N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ....................... 0 N/A
SHARES REDEEMED - CLASS C ...................................................... (472) N/A
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ........................... 15,092 N/A
------------ ------------
SHARES SOLD - INSTITUTIONAL CLASS .............................................. 1,381,388 3,406,953
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ........... 958,327 987,599
SHARES REDEEMED -INSTITUTIONAL CLASS ........................................... (1,284,613) (3,691,696)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ............... 1,055,102 702,856
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS . ................................................... 1,107,761 702,856
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............................. $ 2,824,187 $ 12,991,504
============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
STRATEGIC GROWTH ALLOCATION FUND
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ $131,759,828 $ 78,672,654
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................... 839,771 1,216,967
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................................ 4,483,686 (1,465,299)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ............ 13,216,386 19,232,700
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................... 18,539,843 18,984,368
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ..................................................................... N/A N/A
CLASS B ..................................................................... N/A N/A
CLASS C ..................................................................... N/A N/A
INSTITUTIONAL CLASS ......................................................... (1,827,801) (1,300,068)
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 DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 ................................ 21,463,679 46,290,862
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ............................ 1,812,422 1,288,799
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .................................. (6,464,243) (12,176,787)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS ............................................................ 16,811,858 35,402,874
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 16,811,858 35,402,874
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ............................................. 33,523,900 53,087,174
NET ASSETS:
- -------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ................................................................. $165,283,728 $131,759,828
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .......................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 .............................................. 1,654,128 4,184,034
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ........... 141,154 121,815
SHARES REDEEMED -INSTITUTIONAL CLASS ........................................... (498,420) (1,128,115)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ............... 1,296,862 3,177,734
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ..................................................... 1,296,862 3,177,734
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............................. $ 447,846 $ 1,435,876
============ ============
STRATEGIC INCOME FUND
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ........................................................ $381,254,038 $288,610,098
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................... 4,768,846 8,885,725
NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................................ 4,711,825 5,546,458
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ............ 9,973,305 9,976,603
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................... 19,453,976 24,408,786
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ..................................................................... N/A N/A
CLASS B ..................................................................... N/A N/A
CLASS C ..................................................................... N/A N/A
INSTITUTIONAL CLASS ......................................................... (10,150,095) (9,380,842)
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 ......................................................... (2,655,070) (837,470)
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 DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 ................................ 44,315,507 125,017,004
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ............................ 12,680,745 10,051,622
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS .................................. (45,792,823) (56,615,160)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
INSTITUTIONAL CLASS ............................................................ 11,203,429 78,453,466
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 11,203,429 78,453,466
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ............................................. 17,852,240 92,643,940
NET ASSETS:
- -------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ................................................................. $399,106,278 $381,254,038
------------ ------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .......................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 DISTRIBUTIONS - 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 .............................................. 2,279,289 6,640,170
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ........... 659,912 550,463
SHARES REDEEMED -INSTITUTIONAL CLASS ........................................... (2,358,123) (3,035,100)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ............... 581,078 4,155,533
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM
CAPITAL SHARE TRANSACTIONS ..................................................... 581,078 4,155,533
------------ ------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............................. $ 2,503,133 $ 7,884,382
============ ============
55
WELLS FARGO ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
--------- ---------- -------------- ----------
ASSET ALLOCATION FUND
A SHARES
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $17.50 0.18 1.87 (0.17)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $14.97 0.30 2.53 (0.30)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $18.72 0.32 (2.52) (0.32)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $24.36 0.36 (3.87) (0.36)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $25.84 0.55 2.21 (0.55)
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. $25.65 0.36 0.19 (0.36)
APRIL 1, 1998 TO FEBRUARY 28, 1999 .............. $24.99 0.38 2.92 (0.33)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $10.63 0.06 1.14 (0.06)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 9.09 0.10 1.54 (0.10)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $11.36 0.11 (1.53) (0.11)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $14.78 0.13 (2.35) (0.13)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $15.63 0.22 1.35 (0.19)
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. $15.55 0.18 0.08 (0.18)
APRIL 1, 1998 TO FEBRUARY 28, 1999 .............. $15.16 0.13 1.77 (0.11)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $10.65 0.06 1.14 (0.06)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $ 9.11 0.11 1.54 (0.11)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $11.39 0.11 (1.53) (0.11)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $14.82 0.13 (2.35) (0.13)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $15.68 0.21 1.36 (0.19)
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. $15.59 0.18 0.09 (0.18)
APRIL 1, 1998(3) TO FEBRUARY 28, 1999 ........... $15.16 0.08 1.82 (0.07)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $17.53 0.19 1.88 (0.19)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $14.99 0.33 2.56 (0.35)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $18.72 0.32 (2.50) (0.32)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $24.37 0.46 (3.98) (0.36)
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ....... $23.18 0.50 1.15 (0.46)
GROWTH BALANCED FUND
- --------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $28.27 0.72 2.59 (0.58)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $24.27 0.34 4.05 (0.39)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $29.18 0.38 (3.88) (0.23)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $34.96 0.59 (3.72) (0.62)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $32.69 0.62 4.05 (0.59)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $32.78 0.16 (0.25) 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. $28.09 0.63 5.67 (0.58)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $25.89 0.51 2.43 (0.44)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $22.22 0.16 3.68 (0.17)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $26.92 0.19 (3.59) (0.12)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $32.50 0.39 (3.50) (0.44)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $30.59 0.42 3.71 (0.41)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $30.76 0.10 (0.27) 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. $26.96 0.56 4.82 (0.55)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $25.88 0.51 2.42 (0.44)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $22.22 0.15 3.69 (0.18)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $26.91 0.17 (3.57) (0.11)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $32.50 0.39 (3.50) (0.45)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $30.65 0.48 3.66 (0.48)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $30.79 0.07 (0.21) 0.00
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. $26.96 0.65 4.79 (0.58)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
FINANCIAL HIGHLIGHTS WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
FROM NET NET ASSET -----------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSE NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
------------- --------- -------------- -------- ------- --------
ASSET ALLOCATION FUND
A SHARES
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.27) $19.11 1.89% 1.35% (0.20)% 1.15%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $17.50 1.80% 1.45% (0.30)% 1.15%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.23) $14.97 1.76% 1.34% (0.25)% 1.09%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (1.77) $18.72 1.71% 1.20% (0.21)% 0.99%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (3.69) $24.36 2.20% 1.18% (0.19)% 0.99%
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. 0.00 $25.84 2.08% 0.96% (0.01)% 0.95%
APRIL 1, 1998 TO FEBRUARY 28, 1999 .............. (2.31) $25.65 1.65% N/A N/A 0.92%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.16) $11.61 1.14% 2.10% (0.20)% 1.90%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $10.63 1.05% 2.27% (0.37)% 1.90%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.74) $ 9.09 1.00% 2.15% (0.31)% 1.84%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (1.07) $11.36 0.96% 1.93% (0.19)% 1.74%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (2.23) $14.78 1.45% 1.97% (0.23)% 1.74%
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. 0.00 $15.63 1.42% 1.68% (0.05)% 1.63%
APRIL 1, 1998 TO FEBRUARY 28, 1999 .............. (1.40) $15.55 0.91% 1.63% (0.01)% 1.62%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.16) $11.63 1.14% 2.10% (0.20)% 1.90%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $10.65 1.05% 2.23% (0.33)% 1.90%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.75) $ 9.11 1.01% 2.11% (0.27)% 1.84%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (1.08) $11.39 0.96% 1.89% (0.15)% 1.74%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (2.24) $14.82 1.42% 1.91% (0.17)% 1.74%
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. 0.00 $15.68 1.46% 1.70% (0.06)% 1.64%
APRIL 1, 1998(3) TO FEBRUARY 28, 1999 ........... (1.40) $15.59 0.69% 1.85% (0.21)% 1.64%
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.27) $19.14 2.14% 1.12% (0.22)% 0.90%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $17.53 2.04% 1.22% (0.31)% 0.91%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.23) $14.99 1.89% 1.15% (0.18)% 0.97%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (1.77) $18.72 1.70% 1.12% (0.12)% 1.00%
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ....... 0.00 $24.37 2.21% 1.03% (0.04)% 0.99%
GROWTH BALANCED FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $31.00 1.28% 1.27%(4) (0.07)%(4) 1.20%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $28.27 1.43% 1.48%(4) (0.28)%(4) 1.20%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.18) $24.27 1.60% 1.18%(4) (0.03)%(4) 1.15%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (2.03) $29.18 1.93% 1.30%(4) (0.15)%(4) 1.15%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (1.81) $34.96 2.05% 1.37%(4) (0.22)%(4) 1.15%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $32.69 1.83% 1.67%(4) (0.52)%(4) 1.15%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. (1.03) $32.78 1.92% 1.88%(4) (0.73)%(4) 1.15%(4)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $28.39 0.52% 2.02%(4) (0.07)%(4) 1.95%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $25.89 0.69% 2.57%(4) (0.62)%(4) 1.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.18) $22.22 0.85% 2.13%(4) (0.23)%(4) 1.90%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (2.03) $26.92 1.16% 2.16%(4) (0.26)%(4) 1.90%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (1.81) $32.50 1.28% 2.15%(4) (0.25)%(4) 1.90%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $30.59 1.08% 2.31%(4) (0.41)%(4) 1.90%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. (1.03) $30.76 1.34% 2.43%(4) (0.68)%(4) 1.75%(4)
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $28.37 0.52% 2.02%(4) (0.07)%(4) 1.95%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 0.00 $25.88 0.69% 2.57%(4) (0.62)%(4) 1.95%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (1.18) $22.22 0.85% 2.17%(4) (0.27)%(4) 1.90%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (2.03) $26.91 1.18% 2.06%(4) (0.16)%(4) 1.90%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (1.81) $32.50 1.31% 2.12%(4) (0.22)%(4) 1.90%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $30.65 1.30% 2.46%(4) (0.78)%(4) 1.68%(4)
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. (1.03) $30.79 1.45% 4.43%(4) (2.75)%(4) 1.68%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
--------- --------- ---------------
ASSET ALLOCATION FUND
A SHARES
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.80% 1% $ 890,246
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 19.04% 15% $ 838,683
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (13.20)% 23% $ 763,925
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (15.52)% 54% $ 989,513
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 11.96% 37% $1,266,358
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. 2.10% 29% $1,310,935
APRIL 1, 1998 TO FEBRUARY 28, 1999 .............. 13.69% 31% $1,362,966
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.38% 1% $ 257,459
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 18.10% 15% $ 280,220
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (13.83)% 23% $ 325,790
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (16.18)% 54% $ 479,035
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 11.21% 37% $ 577,526
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. 1.68% 29% $ 491,284
APRIL 1, 1998 TO FEBRUARY 28, 1999 .............. 12.98% 31% $ 402,991
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.39% 1% $ 30,524
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 18.14% 15% $ 27,345
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (13.86)% 23% $ 23,466
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (16.16)% 54% $ 31,536
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 11.17% 37% $ 32,911
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ............. 1.69% 29% $ 20,218
APRIL 1, 1998(3) TO FEBRUARY 28, 1999 ........... 12.97% 31% $ 10,076
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.93% 1% $ 20,392
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 19.38% 15% $ 18,214
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (13.09)% 23% $ 14,529
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (15.57)% 54% $ 17,515
NOVEMBER 8, 1999(3) TO SEPTEMBER 30, 2000 ....... 7.14% 37% $ 20,822
GROWTH BALANCED FUND
- -----------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.78% 42%(5) $ 55,752
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 18.25% 53%(5) $ 43,509
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (12.99)% 48%(5) $ 32,370
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (9.78)% 60%(5) $ 25,049
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 14.86% 56%(5) $ 17,976
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.27)% 11%(5) $ 6,552
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 22.83% 49%(5) $ 3,667
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.36% 42%(5) $ 94,119
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 17.40% 53%(5) $ 81,511
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (13.68)% 48%(5) $ 66,337
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (10.45)% 60%(5) $ 48,487
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 14.04% 56%(5) $ 20,198
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.55)% 11%(5) $ 11,967
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 20.36% 49%(5) $ 8,978
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 11.38% 42%(5) $ 28,438
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 17.35% 53%(5) $ 24,958
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (13.67)% 48%(5) $ 18,484
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (10.46)% 60%(5) $ 11,265
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 14.06% 56%(5) $ 6,564
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. (0.45)% 11%(5) $ 2,153
OCTOBER 1, 1998(3) TO MAY 31, 1999 .............. 20.59% 49%(5) $ 1,236
57
WELLS FARGO ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
--------- ---------- -------------- ----------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $26.34 0.84 2.28 (0.63)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $22.65 0.35 3.80 (0.46)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $27.33 0.44 (3.65) (0.29)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $32.91 0.57 (3.43) (0.69)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $30.86 0.69 3.79 (0.62)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. $30.93 0.19 (0.26) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ........................ $28.06 0.60 3.88 (0.58)
INDEX ALLOCATION FUND
- ------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $12.92 0.03 1.68 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $10.56 0.06(6) 2.34 (0.02)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $14.03 0.03 (2.87) 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $21.50 0.01 (5.41) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $19.72 0.01 2.48 0.00
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. $19.04 0.02 0.68 (0.02)
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. $17.55 0.03 2.14 (0.03)
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $15.47 (0.03) 2.02 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $12.72 (0.04)(6) 2.81 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $17.03 (0.11) (3.43) 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $26.30 (0.16) (6.58) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $24.30 (0.15) 3.02 0.00
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. $23.55 (0.05) 0.80 0.00
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. $21.81 (0.07) 2.61 0.00
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $15.48 (0.03) 2.02 0.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $12.72 (0.04)(6) 2.82 0.00
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $17.04 (0.12) (3.43) 0.00
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $26.31 (0.21) (6.53) 0.00
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $24.32 (0.22) 3.08 0.00
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. $23.56 (0.07) 0.83 0.00
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. $21.82 (0.10) 2.64 0.00
MODERATE BALANCED FUND
- ------------------------------------------------------------------------------------------------------------
CLASS A
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... $21.79 0.03 0.12 0.00
CLASS B
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... $21.79 0.03 0.09 0.00
CLASS C
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... $21.79 0.02 0.10 0.00
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $21.09 0.22 1.49 (0.64)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $19.47 0.44 2.02 (0.64)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $22.29 0.56 (1.80) (0.54)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $24.83 0.76 (1.17) (0.87)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $24.18 0.94 1.79 (0.83)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. $24.14 0.26 (0.22) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ........................ $22.98 0.75 1.94 (0.75)
STRATEGIC GROWTH ALLOCATION(7)
- ------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... $11.85 0.07 1.55 (0.16)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... $ 9.91 0.10 2.00 (0.16)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... $12.02 0.13 (2.03) (0.11)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... $14.78 0.17 (2.29) (0.17)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... $12.89 0.18 1.85 (0.12)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. $12.93 0.02 (0.06) 0.00
JUNE 1, 1998 TO MAY 31, 1999 ........................ $11.04 0.15 1.83 (0.09)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
FINANCIAL HIGHLIGHTS WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
DISTIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
FROM NET NET ASSET ------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSE NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
------------ --------- -------------- -------- ------- --------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $28.83 1.60% 0.94%(4) 0%(4) 0.94%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $26.34 1.69% 1.05%(4) (0.11)%(4) 0.94%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.18) $22.65 1.80% 1.05%(4) (0.12)%(4) 0.93%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (2.03) $27.33 2.16% 0.97%(4) (0.04)%(4) 0.93%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (1.81) $32.91 2.23% 1.01%(4) (0.08)%(4) 0.93%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. 0.00 $30.86 2.05% 1.14%(4) (0.21)%(4) 0.93%(4)
JUNE 1, 1998 TO MAY 31, 1999 ........................ (1.03) $30.93 2.16% 1.13%(4) (0.20)%(4) 0.93%(4)
INDEX ALLOCATION FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $14.63 0.45% 1.46% (0.21)% 1.25%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.02) $12.92 0.48% 1.52% (0.22)% 1.30%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (0.63) $10.56 0.20% 1.43% (0.13)% 1.30%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (2.07) $14.03 0.01% 1.30% (0.00)% 1.30%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (0.71) $21.50 (0.01)% 1.32% (0.02)% 1.30%
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.00 $19.72 0.15% 1.26% (0.00)% 1.26%
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. (0.65) $19.04 0.19% N/A N/A 1.29%
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $17.46 (0.30)% 2.21% (0.21)% 2.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.02) $15.47 (0.16)% 2.47% (0.42)% 2.05%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (0.77) $12.72 (0.55)% 2.43% (0.38)% 2.05%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (2.53) $17.03 (0.74)% 2.15% (0.10)% 2.05%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (0.87) $26.30 (0.78)% 2.18% (0.13)% 2.05%
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.00 $24.30 (0.61)% 2.07% (0.04)% 2.03%
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. (0.80) $23.55 (0.57)% 2.26% (0.22)% 2.04%
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $17.47 (0.30)% 2.21% (0.21)% 2.00%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.02) $15.48 (0.18)% 2.36% (0.31)% 2.05%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (0.77) $12.72 (0.56)% 2.21% (0.16)% 2.05%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (2.53) $17.04 (0.74)% 2.05% (0.00)% 2.05%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (0.87) $26.31 (0.76)% 2.13% (0.08)% 2.05%
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.00 $24.32 (0.60)% 2.02% (0.01)% 2.01%
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. (0.80) $23.56 (0.56)% 2.06% (0.01)% 2.05%
MODERATE BALANCED FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $21.94 2.30% 1.27%(4) (0.12)%(4) 1.15%(4)
CLASS B
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $21.91 1.55% 2.03%(4) (0.13)%(4) 1.90%(4)
CLASS C
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.00 $21.91 1.55% 2.02%(4) (0.12)%(4) 1.90%(4)
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... (0.21) $21.95 2.04% 0.91%(4) (0.01)%(4) 0.90%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (0.20) $21.09 2.25% 1.03%(4) (0.14)%(4) 0.89%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.04) $19.47 2.55% 1.02%(4) (0.14)%(4) 0.88%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (1.26) $22.29 3.37% 0.93%(4) (0.05)%(4) 0.88%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (1.25) $24.83 3.58% 0.96%(4) (0.08)%(4) 0.88%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. 0.00 $24.18 3.37% 1.09%(4) (0.21)%(4) 0.88%(4)
JUNE 1, 1998 TO MAY 31, 1999 ........................ (0.78) $24.14 3.26% 1.09%(4) (0.21)%(4) 0.88%(4)
STRATEGIC GROWTH ALLOCATION(7)
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 0.00 $13.31 1.10% 1.01%(4) (0.01)%(4) 1.00%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $11.85 1.20% 1.13%(4) (0.13)%(4) 1.00%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (0.10) $ 9.91 1.20% 1.08%(4) (0.08)%(4) 1.00%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (0.47) $12.02 1.37% 1.03%(4) (0.03)%(4) 1.00%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... (0.02) $14.78 1.40% 1.17%(4) (0.17)%(4) 1.00%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. 0.00 $12.89 1.36% 1.24%(4) (0.24)%(4) 1.00%(4)
JUNE 1, 1998 TO MAY 31, 1999 ........................ 0.00 $12.93 1.34% 1.36%(4) (0.36)%(4) 1.00%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
--------- --------- ---------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 11.94% 42%(5) $1,580,981
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 18.53% 53%(5) $1,415,216
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (12.85)% 48%(5) $1,075,256
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (9.59)% 60%(5) $1,164,850
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 15.14% 56%(5) $1,065,362
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. (0.23)% 11%(5) $ 905,789
JUNE 1, 1998 TO MAY 31, 1999 ........................ 16.38% 49%(5) $ 850,503
INDEX ALLOCATION FUND
- -----------------------------------------------------------------------------------------------
CLASS A
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 13.26% 1% $ 46,630
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 22.79% 2% $ 40,762
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (21.55)% 4% $ 36,770
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (27.42)% 4% $ 57,833
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 12.63% 7% $ 89,608
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. 3.68% 3% $ 94,676
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. 12.60% 12% $ 92,655
CLASS B
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 12.86% 1% $ 12,185
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 21.84% 2% $ 12,569
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (22.15)% 4% $ 12,478
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (27.98)% 4% $ 19,775
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 11.81% 7% $ 29,726
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. 3.18% 3% $ 19,431
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. 11.88% 12% $ 12,568
CLASS C
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 12.86% 1% $ 24,283
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 21.91% 2% $ 22,603
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (22.20)% 4% $ 24,575
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (27.97)% 4% $ 44,621
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 11.76% 7% $ 77,008
MARCH 1, 1999 TO SEPTEMBER 30, 1999 ................. 3.23% 3% $ 77,530
APRIL 1, 1998 TO FEBRUARY 28, 1999 .................. 11.88% 12% $ 67,364
MODERATE BALANCED FUND
- -----------------------------------------------------------------------------------------------
CLASS A
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.69% 56%(5) $ 601
CLASS B
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.55% 56%(5) $ 223
CLASS C
JANUARY 30, 2003(3) TO MARCH 31, 2004 (UNAUDITED) ... 0.55% 56%(5) $ 331
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 8.22% 56%(5) $ 556,284
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 12.99% 64%(5) $ 512,460
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (6.35)% 61%(5) $ 459,248
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (1.98)% 69%(5) $ 519,931
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 11.98% 58%(5) $ 524,214
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. 0.17% 11%(5) $ 546,570
JUNE 1, 1998 TO MAY 31, 1999 ........................ 12.02% 53%(5) $ 527,693
STRATEGIC GROWTH ALLOCATION(7)
- -----------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ....... 13.70% 32%(5) $ 165,284
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 21.36% 43%(5) $ 131,760
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (16.22)% 40%(5) $ 78,673
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............... (14.97)% 49%(5) $ 82,908
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............... 15.82% 48%(5) $ 90,334
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .................. (0.31)% 12%(5) $ 65,011
JUNE 1, 1998 TO MAY 31, 1999 ........................ 17.98% 43%(5) $ 31,975
59
WELLS FARGO ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
--------- ---------- -------------- ----------
STRATEGIC INCOME FUND
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... $19.23 0.23 0.75 (0.51)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... $18.42 0.46 1.00 (0.60)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... $19.92 0.61 (0.75) (0.78)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... $20.44 0.84 (0.06) (0.93)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... $20.06 0.95 0.86 (0.88)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. $19.98 0.29 (0.21) 0.00
JUNE 1, 1998 TO MAY 31, 1999 .................... $19.56 0.82 0.81 (0.84)
60
FINANCIAL HIGHLIGHTS WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
FROM NET NET ASSET --------------------------------------------------
REALIZED VALUE PER NET INVESTMENT GROSS EXPENSE NET
GAINS SHARE INCOME (LOSS) EXPENSES WAIVED EXPENSES
------------- --------- -------------- -------- ---------- ---------
STRATEGIC INCOME FUND
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... (0.14) $19.56 2.44% 0.87%(4) (0.02)%(4) 0.85%(4)
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... (0.05) $19.23 2.78% 0.97%(4) (0.15)%(4) 0.82%(4)
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.58) $18.42 3.23% 1.00%(4) (0.20)%(4) 0.80%(4)
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... (0.37) $19.92 4.34% 0.90%(4) (0.10)%(4) 0.80%(4)
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... (0.55) $20.44 4.69% 0.94%(4) (0.14)%(4) 0.80%(4)
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.00 $20.06 4.32% 1.05%(4) (0.25)%(4) 0.80%(4)
JUNE 1, 1998 TO MAY 31, 1999 .................... (0.37) $19.98 4.22% 1.04%(4) (0.24)%(4) 0.80%(4)
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE (000'S OMITTED)
--------- --------- ---------------
STRATEGIC INCOME FUND
INSTITUTIONAL CLASS
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ... 5.17% 68%(5) $399,106
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ........... 8.17% 73%(5) $381,254
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ........... (0.89)% 71%(5) $288,610
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ........... 3.89% 77%(5) $301,041
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ........... 9.52% 62%(5) $268,386
JUNE 1, 1999 TO SEPTEMBER 30, 1999 .............. 0.40% 11%(5) $267,158
JUNE 1, 1998 TO MAY 31, 1999 .................... 8.45% 54%(5) $263,328
61
WELLS FARGO ASSET ALLOCATION 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
periods shown. Returns for periods less than one year are not annualized.
(3) Commencement of operations.
(4) Includes expenses allocated from the Portfolio(s) in which the Fund
invests.
(5) Portfolio turnover rate is calculated by aggregating the results of
multiplying the Fund's investment percentage in the respective Portfolio
by the corresponding Portfolio's portfolio turnover rate.
(6) Calculated based upon average shares outstanding.
(7) The fund was renamed from Aggressive Balanced Equity to Strategic Growth
Allocation on February 1, 2002.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ASSET ALLOCATION 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 (each, a "Fund",
collectively, the "Funds"). These financial statements present the Asset
Allocation Fund, Growth Balanced Fund, Index Allocation Fund, Moderate Balanced
Fund, Strategic Growth Allocation Fund, and Strategic Income Fund.
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.
The Growth Balanced Fund, Moderate Balanced Fund, Strategic Growth
Allocation Fund, and Strategic Income Fund each seek to achieve its investment
objective by investing all investable assets in one or more separate diversified
portfolios (each, a "Master Portfolio", collectively, the "Master Portfolios")
of Wells Fargo Master Trust, a registered open-end management investment
company. Each Master Portfolio directly acquires portfolio securities, and a
Fund investing in a Master Portfolio acquires an indirect interest in those
securities. Each Fund accounts for its investment in the Master Portfolios as
partnership investments and records daily its share of the Master Portfolio's
income, expenses, and realized and unrealized gains and losses. The financial
statements of the Master Portfolios are in this report and should be read in
conjunction with each Fund's financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, 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 in the Master Portfolios are valued at their net asset value
at the close of business each day. Securities held in the Master Portfolios are
valued as discussed in the Notes to Financial Statements of the Master
Portfolios, which are included elsewhere in this report.
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.
63
WELLS FARGO ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FUTURES CONTRACTS
The Fund(s) may purchase futures contracts to gain exposure to market
changes, which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the entire value of the
underlying contracts. Risks of entering into futures contracts include the
possibility that there may be an illiquid market and that a change in the value
of the contract may not correlate with changes in the value of the underlying
securities. At March 31, 2004, the following Fund(s) held futures contracts:
Net Unrealized
Notional Appreciation
Fund Contracts Type Expiration Date Contract Amount (Depreciation)
- --------------------- ----------- ------------- --------------- --------------- --------------
ASSET ALLOCATION FUND 1,171 Long S&P 500 Index June 2004 $329,314,475 $(5,767,490)
ASSET ALLOCATION FUND 214 Long U.S. T-Bonds June 2004 24,409,375 (136,375)
ASSET ALLOCATION FUND 2,609 Short U.S. T-Bonds June 2004 297,589,063 (6,804,614)
INDEX ALLOCATION FUND 12 Long S&P 500 Index June 2004 3,374,700 (45,175)
GROWTH
BALANCED FUND 951 Long S&P 500 Index June 2004 267,444,975 (4,831,773)
GROWTH
BALANCED FUND 2,260 Short U.S. T-Bonds June 2004 257,751,250 (5,932,500)
MODERATE
BALANCED FUND 203 Long S&P 500 Index June 2004 57,088,675 (997,310)
MODERATE
BALANCED FUND 483 Short U.S. T-Bonds June 2004 55,092,188 (1,267,875)
STRATEGIC GROWTH
ALLOCATION FUND 89 Long S&P 500 Index June 2004 25,029,025 (449,627)
STRATEGIC GROWTH
ALLOCATION FUND 213 Short U.S. T-Bonds June 2004 24,295,313 (559,125)
STRATEGIC INCOME FUND 72 Long S&P 500 Index June 2004 20,248,200 (335,667)
STRATEGIC INCOME FUND 173 Short U.S. T-Bonds June 2004 19,732,813 (454,126)
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually, with the exception of the Asset Allocation and Index Allocation Funds,
for which net investment income, if any, is declared and distributed to
shareholders quarterly. 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.
64
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the 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 March 31, 2004.
At September 30, 2003, estimated net capital loss carryforwards which are
available to offset future net realized capital gains are:
Capital Loss
Fund Year Expires Carryforwards
ASSET ALLOCATION FUND September 2011 $ 1,811,591
GROWTH BALANCED FUND May 2011 79,661,843
INDEX ALLOCATION FUND September 2011 4,223,707
MODERATE BALANCED FUND May 2011 11,098,169
STRATEGIC GROWTH ALLOCATION FUND May 2010 3,637,665
May 2011 8,666,963
STRATEGIC INCOME FUND May 2011 2,385,473
At September 30, 2003, current year deferred post-October capital losses,
which will be treated as realized for tax purposes on the first day of the
succeeding year are:
Fund Name Deferred Post-October Capital Loss
GROWTH BALANCED FUND $21,546,233
INDEX ALLOCATION FUND 35,485
STRATEGIC GROWTH ALLOCATION FUND 2,842,502
SECURITY LOANS
The Fund(s) may loan securities in return for securities and cash
collateral, which is invested in various short-term fixed income securities. A
Fund may receive compensation for lending securities in the form of fees or by
retaining a portion of interest on the investment securities or cash received as
collateral. A Fund also continues to receive interest or dividends on the
securities loaned. Security loans are secured at all times by collateral. The
collateral is equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered into. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the loan
are reflected in the value of the Fund. The risks from securities lending are
that the borrower may not provide additional collateral when required or return
the securities when due or when called for by the Fund. Wells Fargo Bank, N.A.,
the Funds' custodian, acts as the securities lending agent for the Funds and
receives for its services 40% of the revenues earned on the securities lending
activities and incurs all expenses. The value of the securities on loan and the
value of the related collateral at March 31, 2004 are shown on the Statement of
Assets and Liabilities.
At March 31, 2004, cash collateral was invested as follows:
Repurchase Short-Term Mid-Term Money Market
Fund Agreements Securities Securities Fund Total
ASSET ALLOCATION FUND 14% 59% 25% 2% 100%
INDEX ALLOCATION FUND 19% 67% 12% 2% 100%
65
WELLS FARGO ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENT (UNAUDITED)
- --------------------------------------------------------------------------------
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and, if applicable, for
supervising the sub-adviser responsible for day-to-day portfolio management.
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. The fees related to sub-advisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment sub-adviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fee Sub-Advisory Fee
(% of Average Daily Average Daily Net (% of Average Daily
Fund Net Assets) Sub-Adviser Assets Net Assets)
ASSET ALLOCATION FUND 0.75 Wells Capital $0-1 billion 0.15
Management Incorporated >$1 billion 0.10
GROWTH BALANCED FUND 0.25 Wells Capital
Management Incorporated N/A 0.05
INDEX ALLOCATION FUND 0.75 Wells Capital $0-1 billion 0.15
Management Incorporated >$1 billion 0.10
MODERATE BALANCED FUND 0.25 Wells Capital
Management Incorporated N/A 0.05
STRATEGIC GROWTH 0.25 Wells Capital
ALLOCATION FUND Management Incorporated N/A 0.05
STRATEGIC INCOME FUND 0.25 Wells Capital
Management Incorporated N/A 0.05
Each Fund that invests its assets in one or more of the Master Portfolios
may withdraw its investments from its corresponding Master Portfolio(s) at any
time if the Board of Trustees determines that it is in the best interest of the
Fund to do so. Upon such redemption and subsequent direct investment in a
portfolio of securities, Funds Management (and the corresponding sub-adviser, if
any) may receive an investment advisory fee for the direct management of those
assets.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers out of the
fees it receives as administrator, Funds Management is entitled to receive the
following annual fees:
% Of Average
Daily Net Assets
FUND LEVEL 0.05
CLASS A 0.28
CLASS B 0.28
CLASS C 0.28
INSTITUTIONAL 0.20
The Trust has entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. BFDS is entitled to
receive fees from the administrator for its services as transfer agent.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to certain transaction charges plus a monthly fee for
custody services at the following annual rates:
% Of Average
Daily Net Assets
ALL FUNDS 0.02
66
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby each Fund is charged the following annual fees:
% Of Average Daily Net Assets
Fund Class A Class B Class C Institutional
ASSET ALLOCATION FUND 0.25 0.25 0.25 0.10
GROWTH BALANCED FUND 0.25 0.25 0.25 0.00
INDEX ALLOCATION FUND 0.25 0.25 0.25 N/A
MODERATE BALANCED FUND 0.25 0.25 0.25 0.00
STRATEGIC GROWTH ALLOCATION FUND N/A N/A N/A 0.00
STRATEGIC INCOME FUND N/A N/A N/A 0.00
For the six months ended March 31, 2004, shareholder servicing fees paid were
as follows:
Fund Class A Class B Class C Institutional
ASSET ALLOCATION FUND $1,091,301 $344,307 $37,318 $9,822
GROWTH BALANCED FUND 62,488 112,245 34,259 0
INDEX ALLOCATION FUND 55,947 16,133 30,042 N/A
MODERATE BALANCED FUND 80 50 54 0
STRATEGIC GROWTH ALLOCATION
FUND N/A N/A N/A 0
STRATEGIC INCOME FUND N/A N/A N/A 0
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.
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee, and an annual fixed fee from
each Fund. PFPC is also entitled to be reimbursed for all out-of-pocket
expenses reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the
Statement of Operations, for the six months ended March 31, 2004, were
waived by Funds Management, first from advisory fees, and then any
remaining amount consecutively from administration, custody and shareholder
servicing fees collected, if any.
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 the
six months ended March 31, 2004, were as follows:
Fund Purchases at Cost Sales Proceeds
ASSET ALLOCATION FUND $ 5,812,424 $ 90,084,983
GROWTH BALANCED FUND 482,061,975 469,541,908
INDEX ALLOCATION FUND 2,623,598 477,299
MODERATE BALANCED FUND 172,112,492 163,406,482
STRATEGIC GROWTH ALLOCATION
FUND 43,484,828 41,025,103
STRATEGIC INCOME FUND 133,818,323 125,963,354
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
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-month period ended March 31, 2004.
67
THIS PAGE IS INTENTIONALLY LEFT BLANK --
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.29%
AMUSEMENT & RECREATION SERVICES - 2.44%
97,600 INTERNATIONAL GAME TECHNOLOGY $ 4,388,096
-----------
APPAREL & ACCESSORY STORES - 2.18%
98,300 NORDSTROM INCORPORATED 3,922,170
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS - 2.29%
74,100 PULTE HOMES INCORPORATED 4,119,960
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 2.04%
98,400 HOME DEPOT INCORPORATED 3,676,224
-----------
BUSINESS SERVICES - 10.00%
97,100 ADOBE SYSTEMS INCORPORATED 3,828,653
81,900 ELECTRONIC ARTS INCORPORATED+ 4,419,324
239,400 MICROSOFT CORPORATION 5,977,818
81,500 SYMANTEC CORPORATION+ 3,773,450
17,999,245
-----------
CHEMICALS & ALLIED PRODUCTS - 6.27%
170,800 PFIZER INCORPORATED 5,986,540
50,500 PROCTER & GAMBLE COMPANY 5,296,440
11,282,980
-----------
COMMUNICATIONS - 1.94%
141,100 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 3,489,403
-----------
DEPOSITORY INSTITUTIONS - 2.30%
98,700 JP MORGAN CHASE & COMPANY 4,140,465
-----------
EDUCATIONAL SERVICES - 5.14%
50,100 APOLLO GROUP INCORPORATED CLASS A+ 4,314,111
87,000 CAREER EDUCATION CORPORATION+ 4,927,680
9,241,791
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 19.01%
158,400 ALTERA CORPORATION+ 3,239,280
90,900 ENERGIZER HOLDINGS INCORPORATED+ 4,244,121
193,900 GENERAL ELECTRIC COMPANY 5,917,828
207,400 INTEL CORPORATION 5,641,280
65,600 INTERNATIONAL BUSINESS MACHINES CORPORATION 6,024,704
91,400 NATIONAL SEMICONDUCTOR CORPORATION+ 4,060,902
173,800 TEXAS INSTRUMENTS INCORPORATED 5,078,436
34,206,551
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY &
TRANSPORTATION EQUIPMENT - 2.17%
51,000 FORTUNE BRANDS INCORPORATED 3,908,130
-----------
69
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 2.01%
67,000 PEPSICO INCORPORATED $ 3,607,950
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.27%
76,200 3M COMPANY 6,238,494
266,800 CISCO SYSTEMS INCORPORATED+ 6,275,136
124,200 DELL INCORPORATED+ 4,175,604
16,689,234
------------
INSURANCE CARRIERS - 4.45%
102,000 FIDELITY NATIONAL FINANCIAL INCORPORATED 4,039,200
61,500 UNITEDHEALTH GROUP INCORPORATED 3,963,060
8,002,260
------------
LEATHER & LEATHER PRODUCTS - 2.13%
93,300 COACH INCORPORATED+ 3,824,367
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 8.28%
71,000 BECTON DICKINSON & COMPANY 3,442,080
88,700 BOSTON SCIENTIFIC CORPORATION+ 3,759,106
61,100 GUIDANT CORPORATION 3,871,907
51,800 ZIMMER HOLDINGS INCORPORATED+ 3,821,804
14,894,897
------------
MEDICAL MANAGEMENT SERVICES - 1.99%
84,800 COVENTRY HEALTH CARE INCORPORATED+ 3,589,584
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 3.12%
110,800 JOHNSON & JOHNSON 5,619,776
------------
MISCELLANEOUS RETAIL - 5.05%
94,200 COSTCO WHOLESALE CORPORATION+ 3,538,152
92,900 WAL-MART STORES INCORPORATED 5,545,201
9,083,353
------------
MISCELLANEOUS SERVICES - 2.02%
68,000 D&B CORPORATION+ 3,638,000
------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.13%
91,500 SLM CORPORATION 3,829,275
------------
SECURITY & COMMODITY BROKERS, DEALERS,
EXCHANGES & SERVICES - 2.06%
62,300 MERRILL LYNCH & COMPANY INCORPORATED 3,710,588
------------
TOTAL COMMON STOCK (COST $157,593,982) 176,864,299
------------
COLLATERAL FOR SECURITIES LENDING - 11.75%
COLLATERAL FOR SECURITY LENDING 21,154,836
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $21,154,836) 21,154,836
------------
70
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 1.72%
MUTUAL FUND - 1.72%
3,091,087 WELLS FARGO MONEY MARKET TRUST~ $ 3,091,087
------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,091,087) 3,091,087
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $181,839,905)* 111.76% $201,110,222
OTHER ASSETS AND LIABILITIES, NET (11.76) (21,167,406)
------ ------------
TOTAL NET ASSETS 100.00% $179,942,816
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
71
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.45%
BUSINESS SERVICES - 1.39%
1,020,500 MICROSOFT CORPORATION $ 25,481,885
-------------
CHEMICALS & ALLIED PRODUCTS - 11.82%
424,775 ABBOTT LABORATORIES 17,458,252
384,722 AIR PRODUCTS & CHEMICALS INCORPORATED 19,282,267
769,984 DU PONT (E.I.) DE NEMOURS & COMPANY 32,508,724
475,235 MERCK & COMPANY INCORPORATED 21,000,635
1,082,335 PFIZER INCORPORATED 37,935,842
486,630 PROCTER & GAMBLE COMPANY 51,037,754
954,681 ROHM & HAAS COMPANY 38,034,491
217,257,965
-------------
COMMUNICATIONS - 3.45%
345,040 AT&T CORPORATION 6,752,433
471,440 SBC COMMUNICATIONS INCORPORATED 11,569,138
1,232,236 VERIZON COMMUNICATIONS INCORPORATED 45,025,903
63,347,474
-------------
DEPOSITORY INSTITUTIONS - 13.24%
431,635 BANK OF AMERICA CORPORATION 34,953,802
997,465 CITIGROUP INCORPORATED 51,568,940
1,641,965 JP MORGAN CHASE & COMPANY 68,880,432
2,177,601 US BANCORP 60,210,668
591,115 WACHOVIA CORPORATION 27,782,405
243,396,247
-------------
EATING & DRINKING PLACES - 2.92%
1,878,370 MCDONALD'S CORPORATION 53,665,031
-------------
ELECTRIC, GAS & SANITARY SERVICES - 3.56%
25,858 DOMINION RESOURCES INCORPORATED 1,662,669
215,845 FIRSTENERGY CORPORATION 8,435,223
265,910 FPL GROUP INCORPORATED 17,776,083
801,015 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 37,631,685
65,505,660
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 11.27%
973,200 EMERSON ELECTRIC COMPANY 58,314,144
1,584,894 GENERAL ELECTRIC COMPANY 48,370,965
691,167 INTERNATIONAL BUSINESS MACHINES CORPORATION 63,476,777
916,935 MOTOROLA INCORPORATED 16,138,056
1,030,170 NOKIA OYJ ADR 20,891,848
207,191,790
-------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 3.86%
925,060 FORTUNE BRANDS INCORPORATED 70,887,348
-------------
72
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 6.74%
1,286,995 PEPSICO INCORPORATED $ 69,304,681
2,499,675 SARA LEE CORPORATION 54,642,895
123,947,576
--------------
GENERAL MERCHANDISE STORES - 5.15%
1,251,795 MAY DEPARTMENT STORES COMPANY 43,287,071
1,139,295 TARGET CORPORATION 51,313,847
94,600,918
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.49%
558,441 3M COMPANY 45,719,565
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.08%
553,680 METLIFE INCORPORATED 19,755,302
--------------
INSURANCE CARRIERS - 6.76%
1,344,519 AEGON NV 17,277,069
466,795 ALLSTATE CORPORATION 21,220,501
620,343 AMERICAN INTERNATIONAL GROUP INCORPORATED 44,261,473
1,035,150 ST PAUL COMPANIES INCORPORATED 41,416,351
124,175,394
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.51%
572,659 BECTON DICKINSON & COMPANY 27,762,508
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 5.06%
2,924,715 HEWLETT-PACKARD COMPANY 66,800,490
516,765 JOHNSON & JOHNSON 26,210,321
93,010,811
--------------
MOTION PICTURES - 1.55%
1,141,090 WALT DISNEY COMPANY 28,515,839
--------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 3.19%
1,129,430 AMERICAN EXPRESS COMPANY 58,560,946
--------------
PAPER & ALLIED PRODUCTS - 1.14%
332,100 KIMBERLY-CLARK CORPORATION 20,955,510
--------------
PETROLEUM REFINING & RELATED INDUSTRIES - 9.57%
472,658 BP PLC ADR 24,200,090
472,285 CHEVRONTEXACO CORPORATION 41,457,177
314,575 CONOCOPHILLIPS 21,960,481
1,595,736 EXXON MOBIL CORPORATION 66,366,660
458,984 ROYAL DUTCH PETROLEUM COMPANY 21,838,460
175,822,868
--------------
73
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TOBACCO PRODUCTS - 1.64%
554,300 ALTRIA GROUP INCORPORATED $ 30,181,635
--------------
TRANSPORTATION EQUIPMENT - 2.06%
1,118,480 HONEYWELL INTERNATIONAL INCORPORATED 37,860,548
--------------
TOTAL COMMON STOCK (COST $1,393,199,181) 1,827,602,820
--------------
COLLATERAL FOR SECURITIES LENDING - 4.06%
COLLATERAL FOR SECURITY LENDING 74,618,356
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $74,618,356) 74,618,356
--------------
SHORT-TERM INVESTMENTS - 0.42%
MUTUAL FUND - 0.42%
7,770,431 WELLS FARGO MONEY MARKET TRUST~ 7,770,431
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,770,431) 7,770,431
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,475,587,968)* 103.93% $1,909,991,607
OTHER ASSETS AND LIABILITIES, NET (3.93) (72,189,492)
------ --------------
TOTAL NET ASSETS 100.00% $1,837,802,115
====== ==============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
74
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 98.11%
AMUSEMENT & RECREATION SERVICES - 0.20%
18,956 HARRAH'S ENTERTAINMENT INCORPORATED $ 1,040,495
59,064 INTERNATIONAL GAME TECHNOLOGY 2,655,517
3,696,012
-----------
APPAREL & ACCESSORY STORES - 0.48%
152,569 GAP INCORPORATED 3,344,313
57,907 KOHLS CORPORATION+ 2,798,645
83,028 LIMITED BRANDS 1,660,560
23,406 NORDSTROM INCORPORATED 933,899
8,737,417
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS - 0.13%
21,516 JONES APPAREL GROUP INCORPORATED 777,803
18,585 LIZ CLAIBORNE INCORPORATED 681,884
18,404 VF CORPORATION 859,467
2,319,154
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.11%
46,847 AUTONATION INCORPORATED+ 798,742
14,861 AUTOZONE INCORPORATED+ 1,277,600
2,076,342
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.02%
11,049 RYDER SYSTEM INCORPORATED 427,928
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS - 0.16%
21,074 CENTEX CORPORATION 1,139,260
7,951 KB HOME 642,441
21,361 PULTE HOMES INCORPORATED 1,187,672
2,969,373
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 1.26%
387,491 HOME DEPOT INCORPORATED 14,476,664
133,923 LOWE'S COMPANIES INCORPORATED 7,517,098
24,827 SHERWIN-WILLIAMS COMPANY 954,101
22,947,863
-----------
BUSINESS SERVICES - 6.61%
40,584 ADOBE SYSTEMS INCORPORATED 1,600,227
19,210 AUTODESK INCORPORATED 607,420
100,467 AUTOMATIC DATA PROCESSING INCORPORATED 4,219,614
38,342 BMC SOFTWARE INCORPORATED+ 749,586
171,614 CENDANT CORPORATION 4,185,666
27,951 CITRIX SYSTEMS INCORPORATED+ 604,301
99,115 COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED 2,662,229
31,946 COMPUTER SCIENCES CORPORATION+ 1,288,382
65,466 COMPUWARE CORPORATION+ 487,722
24,400 CONVERGYS CORPORATION+ 370,880
75
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
8,607 DELUXE CORPORATION $ 345,141
110,017 EBAY INCORPORATED+ 7,627,479
50,906 ELECTRONIC ARTS INCORPORATED+ 2,746,888
81,810 ELECTRONIC DATA SYSTEMS CORPORATION 1,583,024
23,686 EQUIFAX INCORPORATED 611,573
151,155 FIRST DATA CORPORATION 6,372,695
33,143 FISERV INCORPORATED+ 1,185,525
40,782 IMS HEALTH INCORPORATED 948,589
70,651 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 1,086,612
33,805 INTUIT INCORPORATED+ 1,517,168
15,333 MERCURY INTERACTIVE CORPORATION+ 686,918
1,838,390 MICROSOFT CORPORATION 45,904,598
19,245 MONSTER WORLDWIDE INCORPORATED+ 504,219
16,111 NCR CORPORATION+ 709,851
64,114 NOVELL INCORPORATED+ 729,617
32,359 OMNICOM GROUP INCORPORATED 2,596,810
890,309 ORACLE CORPORATION+ 10,692,611
45,388 PARAMETRIC TECHNOLOGY CORPORATION+ 205,154
61,983 PEOPLESOFT INCORPORATED+ 1,146,066
29,160 ROBERT HALF INTERNATIONAL INCORPORATED+ 688,759
84,453 SIEBEL SYSTEMS INCORPORATED+ 972,054
559,790 SUN MICROSYSTEMS INCORPORATED+ 2,328,726
48,928 SUNGARD DATA SYSTEMS INCORPORATED+ 1,340,627
53,006 SYMANTEC CORPORATION+ 2,454,178
56,505 UNISYS CORPORATION+ 806,891
72,820 VERITAS SOFTWARE CORPORATION+ 1,959,586
113,283 YAHOO! INCORPORATED+ 5,504,421
120,031,807
------------
CHEMICALS & ALLIED PRODUCTS - 10.83%
266,293 ABBOTT LABORATORIES 10,944,642
38,705 AIR PRODUCTS & CHEMICALS INCORPORATED 1,939,895
15,333 ALBERTO-CULVER COMPANY CLASS B 672,659
219,690 AMGEN INCORPORATED+ 12,779,367
18,812 AVERY DENNISON CORPORATION 1,170,294
40,090 AVON PRODUCTS INCORPORATED 3,041,628
330,586 BRISTOL-MYERS SQUIBB COMPANY 8,010,099
31,937 CHIRON CORPORATION+ 1,405,547
35,790 CLOROX COMPANY 1,750,489
90,708 COLGATE PALMOLIVE COMPANY 4,998,011
158,704 DOW CHEMICAL COMPANY 6,392,597
169,941 DU PONT (E.I.) DE NEMOURS & COMPANY 7,174,909
13,176 EASTMAN CHEMICAL COMPANY 562,352
43,806 ECOLAB INCORPORATED 1,249,785
191,381 ELI LILLY & COMPANY 12,803,389
62,639 FOREST LABORATORIES INCORPORATED+ 4,486,205
38,173 GENZYME CORPORATION+ 1,795,658
171,500 GILLETTE COMPANY 6,705,650
76
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
8,617 GREAT LAKES CHEMICAL CORPORATION $ 205,515
15,950 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 566,225
41,068 KING PHARMACEUTICALS INCORPORATED+ 691,585
42,157 MEDIMUNE INCORPORATED+ 972,983
378,824 MERCK & COMPANY INCORPORATED 16,740,233
45,222 MONSANTO COMPANY 1,658,291
1,298,621 PFIZER INCORPORATED 45,516,666
29,162 PPG INDUSTRIES INCORPORATED 1,700,145
55,380 PRAXAIR INCORPORATED 2,055,706
220,107 PROCTER & GAMBLE COMPANY 23,084,822
37,921 ROHM & HAAS COMPANY 1,510,773
250,559 SCHERING-PLOUGH CORPORATION 4,064,067
11,808 SIGMA-ALDRICH CORPORATION 653,455
18,385 WATSON PHARMACEUTICALS INCORPORATED+ 786,694
226,819 WYETH 8,517,053
196,607,389
------------
COMMUNICATIONS - 4.45%
53,148 ALLTEL CORPORATION 2,651,554
135,144 AT&T CORPORATION 2,644,768
463,985 AT&T WIRELESS SERVICES INCORPORATED+ 6,314,836
72,311 AVAYA INCORPORATED+ 1,148,299
311,926 BELLSOUTH CORPORATION 8,637,231
24,559 CENTURYTEL INCORPORATED 675,127
104,839 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 4,439,931
383,355 COMCAST CORPORATION CLASS A+ 11,017,623
187,260 NEXTEL COMMUNICATIONS INCORPORATED CLASS A+ 4,630,940
300,796 QWEST COMMUNICATIONS INTERNATIONAL INCORPORATED+ 1,296,431
563,328 SBC COMMUNICATIONS INCORPORATED 13,824,069
153,951 SPRINT CORPORATION-FON GROUP 2,837,317
176,283 SPRINT CORPORATION-PCS GROUP+ 1,621,803
54,925 UNIVISION COMMUNICATIONS INCORPORATED CLASS A+ 1,813,074
470,319 VERIZON COMMUNICATIONS INCORPORATED 17,185,456
80,738,459
------------
DEPOSITORY INSTITUTIONS - 10.60%
59,790 AMSOUTH BANCORPORATION 1,405,663
246,777 BANK OF AMERICA CORPORATION 19,984,001
131,792 BANK OF NEW YORK COMPANY INCORPORATED 4,151,448
190,675 BANK ONE CORPORATION 10,395,601
93,092 BB&T CORPORATION 3,286,148
37,915 CHARTER ONE FINANCIAL INCORPORATED 1,340,674
877,237 CITIGROUP INCORPORATED 45,353,153
29,865 COMERICA INCORPORATED 1,622,267
96,212 FIFTH THIRD BANCORP 5,327,258
21,375 FIRST TENNESSEE NATIONAL CORPORATION 1,019,588
182,210 FLEETBOSTON FINANCIAL CORPORATION 8,181,229
25,874 GOLDEN WEST FINANCIAL CORPORATION 2,896,594
77
WELLS FARGO MASTER PORTFOLIOS PORTFOLIOS OF INVESTMENT --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (CONTINUED)
39,064 HUNTINGTON BANCSHARES INCORPORATED $ 866,830
350,525 JP MORGAN CHASE & COMPANY 14,704,524
71,384 KEYCORP 2,162,221
20,307 M&T BANK CORPORATION 1,824,584
38,564 MARSHALL & ILSLEY CORPORATION 1,458,105
73,272 MELLON FINANCIAL CORPORATION 2,292,681
103,207 NATIONAL CITY CORPORATION 3,672,105
25,831 NORTH FORK BANCORPORATION INCORPORATED 1,093,168
37,528 NORTHERN TRUST CORPORATION 1,748,430
47,220 PNC FINANCIAL SERVICES GROUP 2,616,932
37,836 REGIONS FINANCIAL CORPORATION 1,381,771
56,258 SOUTHTRUST CORPORATION 1,865,515
57,120 STATE STREET CORPORATION 2,977,666
48,057 SUNTRUST BANKS INCORPORATED 3,350,054
51,392 SYNOVUS FINANCIAL CORPORATION 1,256,534
32,113 UNION PLANTERS CORPORATION 958,573
326,977 US BANCORP 9,040,914
223,935 WACHOVIA CORPORATION 10,524,945
153,166 WASHINGTON MUTUAL INCORPORATED 6,541,720
288,169 WELLS FARGO & COMPANY++ 16,330,537
15,304 ZIONS BANCORPORATION 875,389
192,506,822
------------
EATING & DRINKING PLACES - 0.52%
28,069 DARDEN RESTAURANTS INCORPORATED 695,830
214,888 MCDONALD'S CORPORATION 6,139,350
19,404 WENDY'S INTERNATIONAL INCORPORATED 789,549
50,097 YUM! BRANDS INCORPORATED+ 1,903,185
9,527,914
------------
EDUCATIONAL SERVICES - 0.14%
29,996 APOLLO GROUP INCORPORATED CLASS A+ 2,582,956
------------
ELECTRIC, GAS & SANITARY SERVICES - 3.11%
106,049 AES CORPORATION+ 904,598
21,624 ALLEGHENY ENERGY INCORPORATED+ 296,465
54,535 ALLIED WASTE INDUSTRIES INCORPORATED+ 725,861
30,983 AMEREN CORPORATION 1,428,006
67,273 AMERICAN ELECTRIC POWER COMPANY INCORPORATED 2,214,627
70,360 CALPINE CORPORATION+ 328,581
52,128 CENTERPOINT ENERGY INCORPORATED 595,823
30,327 CINERGY CORPORATION 1,240,071
48,442 CITIZENS COMMUNICATIONS COMPANY+ 626,839
27,442 CMS ENERGY CORPORATION+ 245,606
38,490 CONSOLIDATED EDISON INCORPORATED 1,697,409
28,488 CONSTELLATION ENERGY GROUP INCORPORATED 1,138,096
55,250 DOMINION RESOURCES INCORPORATED 3,552,575
28,756 DTE ENERGY COMPANY 1,183,309
78
PORTFOLIOS OF INVESTMENT -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES (continued)
154,561 DUKE ENERGY CORPORATION $ 3,493,079
64,166 DYNEGY INCORPORATED CLASS A+ 254,097
55,488 EDISON INTERNATIONAL 1,347,804
109,169 EL PASO CORPORATION 776,192
38,967 ENTERGY CORPORATION 2,318,536
56,071 EXELON CORPORATION 3,861,610
56,174 FIRSTENERGY CORPORATION 2,195,280
31,398 FPL GROUP INCORPORATED 2,098,956
27,089 KEYSPAN CORPORATION 1,035,342
20,987 KINDER MORGAN INCORPORATED 1,322,601
7,500 NICOR INCORPORATED 264,225
44,700 NISOURCE INCORPORATED 949,875
6,343 PEOPLES ENERGY CORPORATION 283,215
71,355 PG&E CORPORATION+ 2,067,154
15,545 PINNACLE WEST CAPITAL CORPORATION 611,696
30,200 PPL CORPORATION 1,377,120
41,736 PROGRESS ENERGY INCORPORATED 1,964,931
40,223 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 1,889,677
38,699 SEMPRA ENERGY 1,230,628
124,700 SOUTHERN COMPANY 3,803,350
31,987 TECO ENERGY INCORPORATED 467,970
55,161 TXU CORPORATION 1,580,914
98,247 WASTE MANAGEMENT INCORPORATED 2,965,094
88,251 WILLIAMS COMPANIES INCORPORATED 844,562
67,923 XCEL ENERGY INCORPORATED 1,209,709
56,391,483
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 9.78%
137,371 ADC TELECOMMUNICATIONS INCORPORATED+ 398,376
59,368 ADVANCED MICRO DEVICES INCORPORATED+ 963,543
64,504 ALTERA CORPORATION+ 1,319,107
33,815 AMERICAN POWER CONVERSION CORPORATION 778,083
63,657 ANALOG DEVICES INCORPORATED 3,056,173
27,047 ANDREW CORPORATION+ 473,322
52,922 APPLIED MICRO CIRCUITS CORPORATION+ 304,301
51,575 BROADCOM CORPORATION CLASS A+ 2,020,193
80,888 CIENA CORPORATION+ 402,013
32,840 COMVERSE TECHNOLOGY INCORPORATED+ 595,718
15,676 COOPER INDUSTRIES LIMITED CLASS A 896,354
71,830 EMERSON ELECTRIC COMPANY 4,304,054
1,736,828 GENERAL ELECTRIC COMPANY 53,007,991
1,104,288 INTEL CORPORATION 30,036,634
289,427 INTERNATIONAL BUSINESS MACHINES CORPORATION 26,580,976
34,061 JABIL CIRCUIT INCORPORATED+ 1,002,415
244,564 JDS UNIPHASE CORPORATION+ 995,375
33,432 KLA-TENCOR CORPORATION+ 1,683,301
53,182 LINEAR TECHNOLOGY CORPORATION 1,968,798
64,556 LSI LOGIC CORPORATION+ 602,953
79
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENT --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
725,507 LUCENT TECHNOLOGIES INCORPORATED+ $ 2,981,834
55,864 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,630,636
13,378 MAYTAG CORPORATION 422,343
103,778 MICRON TECHNOLOGY INCORPORATED+ 1,734,130
32,426 MOLEX INCORPORATED 985,426
398,635 MOTOROLA INCORPORATED 7,015,976
30,322 NATIONAL SEMICONDUCTOR CORPORATION+ 1,347,206
58,771 NETWORK APPLIANCE INCORPORATED+ 1,260,638
26,113 NOVELLUS SYSTEMS INCORPORATED+ 830,132
27,619 NVIDIA CORPORATION+ 731,627
29,424 PMC-SIERRA INCORPORATED+ 499,325
14,181 POWER-ONE INCORPORATED+ 156,842
16,140 QLOGIC CORPORATION+ 532,781
137,118 QUALCOMM INCORPORATED 9,107,378
30,404 ROCKWELL COLLINS INCORPORATED 961,070
88,358 SANMINA-SCI CORPORATION+ 972,822
25,976 SCIENTIFIC-ATLANTA INCORPORATED 840,064
142,455 SOLECTRON CORPORATION+ 787,776
70,740 TELLABS INCORPORATED+ 610,486
295,041 TEXAS INSTRUMENTS INCORPORATED 8,621,098
9,957 THOMAS & BETTS CORPORATION+ 217,262
11,863 WHIRLPOOL CORPORATION 817,005
58,714 XILINX INCORPORATED+ 2,231,132
177,684,669
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES
- 0.34%
13,972 FLUOR CORPORATION 540,577
25,342 MOODY'S CORPORATION 1,794,213
64,296 PAYCHEX INCORPORATED 2,288,938
17,644 QUEST DIAGNOSTICS INCORPORATED 1,461,452
6,085,180
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.53%
9,598 BALL CORPORATION 650,552
10,120 CRANE COMPANY 333,960
24,843 FORTUNE BRANDS INCORPORATED 1,903,719
52,476 ILLINOIS TOOL WORKS INCORPORATED 4,157,674
77,058 MASCO CORPORATION 2,344,875
9,923 SNAP-ON INCORPORATED 320,910
9,711,690
------------
FINANCIAL SERVICES - 0.04%
40,988 JANUS CAPITAL GROUP INCORPORATED 671,383
------------
FOOD & KINDRED PRODUCTS - 3.83%
6,199 ADOLPH COORS COMPANY CLASS B 430,521
138,761 ANHEUSER-BUSCH COMPANIES INCORPORATED 7,076,811
110,359 ARCHER-DANIELS-MIDLAND COMPANY 1,861,756
80
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS (continued)
70,008 CAMPBELL SOUP COMPANY $ 1,909,118
416,452 COCA COLA COMPANY 20,947,536
78,160 COCA COLA ENTERPRISES INCORPORATED 1,889,127
91,440 CONAGRA FOODS INCORPORATED 2,463,394
63,837 GENERAL MILLS INCORPORATED 2,979,911
18,889 HERCULES INCORPORATED+ 216,846
22,160 HERSHEY FOODS CORPORATION 1,835,956
59,965 HJ HEINZ COMPANY 2,236,095
70,232 KELLOGG COMPANY 2,755,904
23,390 MCCORMICK & COMPANY INCORPORATED 784,033
44,226 PEPSI BOTTLING GROUP INCORPORATED 1,315,723
291,271 PEPSICO INCORPORATED 15,684,943
134,745 SARA LEE CORPORATION 2,945,526
38,295 WM WRIGLEY JR COMPANY 2,264,000
69,597,200
-----------
FOOD STORES - 0.34%
62,490 ALBERTSON'S INCORPORATED 1,384,154
126,885 KROGER COMPANY+ 2,111,366
67,466 STARBUCKS CORPORATION+ 2,546,842
24,144 WINN-DIXIE STORES INCORPORATED+ 183,494
6,225,856
-----------
FORESTRY - 0.14%
37,436 WEYERHAEUSER COMPANY 2,452,058
-----------
FURNITURE & FIXTURES - 0.10%
32,688 LEGGETT & PLATT INCORPORATED 775,032
46,733 NEWELL RUBBERMAID INCORPORATED 1,084,206
1,859,238
-----------
GENERAL MERCHANDISE STORES - 1.00%
19,912 BIG LOTS INCORPORATED+ 288,724
57,396 DOLLAR GENERAL CORPORATION 1,102,003
29,315 FAMILY DOLLAR STORES INCORPORATED 1,053,874
30,790 FEDERATED DEPARTMENT STORES INCORPORATED 1,664,200
46,498 JC PENNEY COMPANY INCORPORATED 1,617,201
49,148 MAY DEPARTMENT STORES COMPANY 1,699,538
37,966 SEARS ROEBUCK & COMPANY 1,631,019
155,230 TARGET CORPORATION 6,991,559
85,712 TJX COMPANIES INCORPORATED 2,105,087
18,153,205
-----------
HEALTH SERVICES - 0.63%
55,792 BIOGEN IDEC INCORPORATED+ 3,102,035
76,055 CAREMARK RX INCORPORATED+ 2,528,829
84,389 HCA INCORPORATED 3,427,881
41,373 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A 960,267
81
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES (continued)
15,217 MANOR CARE INCORPORATED $ 537,008
79,156 TENET HEALTHCARE CORPORATION+ 883,381
11,439,401
-----------
HOLDING & OTHER INVESTMENT OFFICES - 0.44%
15,933 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A 495,357
68,083 EQUITY OFFICE PROPERTIES TRUST 1,966,918
47,438 EQUITY RESIDENTIAL 1,416,024
31,195 PLUM CREEK TIMBER COMPANY 1,013,213
30,838 PROLOGIS 1,106,159
32,581 SIMON PROPERTY GROUP INCORPORATED 1,904,034
7,901,705
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.35%
50,817 BED BATH & BEYOND INCORPORATED+ 2,122,118
55,294 BEST BUY COMPANY INCORPORATED 2,859,805
35,859 CIRCUIT CITY STORES INCORPORATED 405,207
27,949 RADIOSHACK CORPORATION 926,789
6,313,919
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.23%
64,613 HILTON HOTELS CORPORATION 1,049,961
39,180 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 1,667,109
34,768 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 1,408,104
4,125,174
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.90%
133,458 3M COMPANY 10,926,206
12,300 AMERICAN STANDARD COMPANIES INCORPORATED+ 1,399,125
62,968 APPLE COMPUTER INCORPORATED+ 1,703,284
286,370 APPLIED MATERIALS INCORPORATED+ 6,122,591
57,027 BAKER HUGHES INCORPORATED 2,080,345
13,361 BLACK & DECKER CORPORATION 760,775
59,138 CATERPILLAR INCORPORATED 4,676,042
1,170,498 CISCO SYSTEMS INCORPORATED+ 27,530,113
7,289 CUMMINS INCORPORATED 426,042
41,470 DEERE & COMPANY 2,874,286
436,065 DELL INCORPORATED+ 14,660,505
34,602 DOVER CORPORATION 1,341,519
411,885 EMC CORPORATION+ 5,605,755
63,774 GATEWAY INCORPORATED+ 336,727
29,868 INGERSOLL-RAND COMPANY CLASS A 2,020,570
21,880 LEXMARK INTERNATIONAL INCORPORATED+ 2,012,960
21,412 PALL CORPORATION 485,838
20,194 PARKER HANNIFIN CORPORATION 1,140,961
39,783 PITNEY BOWES INCORPORATED 1,695,154
82
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
13,804 STANLEY WORKS $ 589,155
39,376 SYMBOL TECHNOLOGIES INCORPORATED 543,389
88,931,342
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.91%
47,529 ACE LIMITED 2,027,587
53,410 AON CORPORATION 1,490,673
27,608 HUMANA INCORPORATED+ 525,104
24,023 JEFFERSON-PILOT CORPORATION 1,321,505
90,305 MARSH & MCLENNAN COMPANIES INCORPORATED 4,181,122
46,036 MEDCO HEALTH SOLUTIONS INCORPORATED+ 1,565,224
129,463 METLIFE INCORPORATED 4,619,240
50,422 UNUMPROVIDENT CORPORATION 737,674
16,468,129
-----------
INSURANCE CARRIERS - 4.96%
26,112 AETNA INCORPORATED 2,342,769
87,339 AFLAC INCORPORATED 3,505,788
119,825 ALLSTATE CORPORATION 5,447,245
18,198 AMBAC FINANCIAL GROUP INCORPORATED 1,342,648
444,329 AMERICAN INTERNATIONAL GROUP INCORPORATED 31,702,874
23,550 ANTHEM INCORPORATED+ 2,134,572
31,980 CHUBB CORPORATION 2,223,889
24,009 CIGNA CORPORATION 1,417,011
27,322 CINCINNATI FINANCIAL CORPORATION 1,187,141
49,618 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 3,160,667
49,272 JOHN HANCOCK FINANCIAL SERVICES INCORPORATED 2,152,694
30,312 LINCOLN NATIONAL CORPORATION 1,434,364
31,583 LOEWS CORPORATION 1,865,292
24,546 MBIA INCORPORATED 1,539,034
16,766 MGIC INVESTMENT CORPORATION 1,076,880
54,632 PRINCIPAL FINANCIAL GROUP INCORPORATED 1,946,538
36,947 PROGRESSIVE CORPORATION 3,236,557
92,052 PRUDENTIAL FINANCIAL INCORPORATED 4,122,089
23,598 SAFECO CORPORATION 1,018,726
38,830 ST PAUL COMPANIES INCORPORATED 1,553,588
19,274 TORCHMARK CORPORATION 1,036,748
171,131 TRAVELERS PROPERTY CASUALTY CORPORATION CLASS B 2,955,432
106,580 UNITEDHEALTH GROUP INCORPORATED 6,868,015
26,414 WELLPOINT HEALTH NETWORKS INCORPORATED+ 3,003,800
23,378 XL CAPITAL LIMITED CLASS A 1,777,663
90,052,024
-----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.11%
43,207 GEORGIA-PACIFIC CORPORATION 1,455,644
18,033 LOUISIANA-PACIFIC CORPORATION 465,251
1,920,895
-----------
83
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.95%
80,983 AGILENT TECHNOLOGIES INCORPORATED+ $ 2,561,492
22,348 ALLERGAN INCORPORATED 1,880,808
35,142 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 695,109
8,929 BAUSCH & LOMB INCORPORATED 535,472
103,940 BAXTER INTERNATIONAL INCORPORATED 3,210,707
43,038 BECTON DICKINSON & COMPANY 2,086,482
43,568 BIOMET INCORPORATED 1,671,268
139,510 BOSTON SCIENTIFIC CORPORATION+ 5,912,434
8,832 C.R. BARD INCORPORATED 862,356
26,210 DANAHER CORPORATION 2,447,228
48,806 EASTMAN KODAK COMPANY 1,277,253
53,051 GUIDANT CORPORATION 3,361,842
206,449 MEDTRONIC INCORPORATED 9,857,940
8,312 MILLIPORE CORPORATION+ 427,071
21,604 PERKINELMER INCORPORATED 446,987
70,887 RAYTHEON COMPANY 2,221,599
31,850 ROCKWELL AUTOMATION INCORPORATED 1,104,240
29,383 ST JUDE MEDICAL INCORPORATED+ 2,118,514
33,974 STRYKER CORPORATION 3,007,718
14,433 TEKTRONIX INCORPORATED 472,103
32,587 TERADYNE INCORPORATED+ 776,548
28,208 THERMO ELECTRON CORPORATION+ 797,722
20,679 WATERS CORPORATION+ 844,530
135,857 XEROX CORPORATION+ 1,979,436
41,184 ZIMMER HOLDINGS INCORPORATED+ 3,038,556
53,595,415
-----------
METAL MINING - 0.33%
33,387 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 1,305,098
73,585 NEWMONT MINING CORPORATION 3,431,268
15,795 PHELPS DODGE CORPORATION+ 1,289,820
6,026,186
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.05%
17,320 VULCAN MATERIALS COMPANY 821,661
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.91%
25,887 EATON CORPORATION 1,454,590
29,716 HASBRO INCORPORATED 646,323
519,564 HEWLETT-PACKARD COMPANY 11,866,842
15,714 ITT INDUSTRIES INCORPORATED 1,199,450
505,452 JOHNSON & JOHNSON 25,636,525
73,213 MATTEL INCORPORATED 1,350,048
24,973 TIFFANY & COMPANY 953,219
340,604 TYCO INTERNATIONAL LIMITED 9,758,305
52,865,302
-----------
84
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 3.31%
78,015 COSTCO WHOLESALE CORPORATION+ $ 2,930,243
67,510 CVS CORPORATION 2,383,103
14,190 DILLARDS INCORPORATED CLASS A 271,880
13,208 EXPRESS SCRIPTS INCORPORATED+ 985,185
52,890 OFFICE DEPOT INCORPORATED+ 995,390
85,042 STAPLES INCORPORATED 2,159,216
36,357 TOYS R US INCORPORATED+ 610,798
737,063 WAL-MART STORES INCORPORATED 43,995,290
174,550 WALGREEN COMPANY 5,751,423
60,082,528
-----------
MOTION PICTURES - 1.20%
775,398 TIME WARNER INCORPORATED+ 13,073,210
348,725 WALT DISNEY COMPANY 8,714,638
21,787,848
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.74%
192,290 UNITED PARCEL SERVICE INCORPORATED CLASS B 13,429,534
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.56%
219,066 AMERICAN EXPRESS COMPANY 11,358,572
39,328 CAPITAL ONE FINANCIAL CORPORATION 2,966,511
31,357 COUNTRYWIDE FINANCIAL CORPORATION 3,007,136
165,484 FANNIE MAE 12,303,736
117,253 FREDDIE MAC 6,924,962
217,600 MBNA CORPORATION 6,012,288
49,428 PROVIDIAN FINANCIAL CORPORATION+ 647,507
76,780 SLM CORPORATION 3,213,243
46,433,955
-----------
OIL & GAS EXTRACTION - 1.61%
42,859 ANADARKO PETROLEUM CORPORATION 2,222,668
55,193 APACHE CORPORATION 2,382,682
27,113 BJ SERVICES COMPANY+ 1,173,180
33,692 BURLINGTON RESOURCES INCORPORATED 2,143,822
39,606 DEVON ENERGY CORPORATION 2,303,089
19,600 EOG RESOURCES INCORPORATED 899,444
74,606 HALLIBURTON COMPANY 2,267,276
17,175 KERR-MCGEE CORPORATION 884,512
24,965 NABORS INDUSTRIES LIMITED+ 1,142,149
22,867 NOBLE CORPORATION+ 878,550
66,105 OCCIDENTAL PETROLEUM CORPORATION 3,044,135
17,733 ROWAN COMPANIES INCORPORATED+ 373,989
100,255 SCHLUMBERGER LIMITED 6,401,282
54,480 TRANSOCEAN INCORPORATED+ 1,519,447
44,101 UNOCAL CORPORATION 1,644,085
29,280,310
-----------
85
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS - 0.66%
18,093 BEMIS COMPANY INCORPORATED $ 470,418
14,854 BOISE CASCADE CORPORATION 514,691
81,828 INTERNATIONAL PAPER COMPANY 3,458,051
85,418 KIMBERLY-CLARK CORPORATION 5,389,876
34,251 MEADWESTVACO CORPORATION 968,961
26,779 PACTIV CORPORATION+ 595,833
9,316 TEMPLE-INLAND INCORPORATED 590,075
11,987,905
-----------
PERSONAL SERVICES - 0.16%
29,131 CINTAS CORPORATION 1,266,907
30,362 H & R BLOCK INCORPORATED 1,549,373
2,816,280
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 4.12%
15,306 AMERADA HESS CORPORATION 999,176
11,837 ASHLAND INCORPORATED 550,302
182,186 CHEVRONTEXACO CORPORATION 15,992,287
116,522 CONOCOPHILLIPS 8,134,401
1,116,810 EXXON MOBIL CORPORATION 46,448,128
57,948 MARATHON OIL CORPORATION 1,951,109
13,155 SUNOCO INCORPORATED 820,609
74,896,012
-----------
PRIMARY METAL INDUSTRIES - 0.43%
148,219 ALCOA INCORPORATED 5,141,717
13,734 ALLEGHENY TECHNOLOGIES INCORPORATED 166,181
21,366 ENGELHARD CORPORATION 638,630
13,333 NUCOR CORPORATION 819,713
19,276 UNITED STATES STEEL CORPORATION 718,417
14,718 WORTHINGTON INDUSTRIES INCORPORATED 282,144
7,766,802
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.41%
11,416 AMERICAN GREETINGS CORPORATION CLASS A+ 259,942
13,891 DOW JONES & COMPANY INCORPORATED 665,518
46,164 GANNETT COMPANY INCORPORATED 4,068,895
13,607 KNIGHT-RIDDER INCORPORATED 996,713
32,596 MCGRAW-HILL COMPANIES INCORPORATED 2,481,859
8,543 MEREDITH CORPORATION 431,934
25,525 NEW YORK TIMES COMPANY CLASS A 1,128,205
36,486 RR DONNELLEY & SONS COMPANY 1,103,702
56,230 TRIBUNE COMPANY 2,836,241
297,913 VIACOM INCORPORATED CLASS B 11,681,169
25,654,178
-----------
86
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RAILROAD TRANSPORTATION - 0.40%
63,355 BURLINGTON NORTHERN SANTA FE CORPORATION $ 1,995,683
36,449 CSX CORPORATION 1,104,040
66,591 NORFOLK SOUTHERN CORPORATION 1,470,995
44,082 UNION PACIFIC CORPORATION 2,636,985
7,207,703
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.28%
12,576 COOPER TIRE & RUBBER COMPANY 253,406
29,859 GOODYEAR TIRE & RUBBER COMPANY+ 254,996
44,812 NIKE INCORPORATED CLASS B 3,489,510
10,029 REEBOK INTERNATIONAL LIMITED 414,699
14,472 SEALED AIR CORPORATION+ 719,693
5,132,304
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES
- 2.28%
17,661 BEAR STEARNS COMPANIES INCORPORATED 1,548,517
231,041 CHARLES SCHWAB CORPORATION 2,682,386
18,506 FEDERATED INVESTORS INCORPORATED CLASS B 581,644
42,477 FRANKLIN RESOURCES INCORPORATED 2,365,119
82,312 GOLDMAN SACHS GROUP INCORPORATED 8,589,257
47,219 LEHMAN BROTHERS HOLDINGS INCORPORATED 3,913,039
165,250 MERRILL LYNCH & COMPANY INCORPORATED 9,842,290
186,821 MORGAN STANLEY 10,705,007
21,435 T ROWE PRICE GROUP INCORPORATED 1,153,846
41,381,105
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.14%
229,557 CORNING INCORPORATED+ 2,566,447
-----------
TOBACCO PRODUCTS - 1.15%
348,569 ALTRIA GROUP INCORPORATED 18,979,582
14,413 RJ REYNOLDS TOBACCO HOLDINGS INCORPORATED 871,986
28,245 UST INCORPORATED 1,019,645
20,871,213
-----------
TRANSPORTATION BY AIR - 0.32%
21,026 DELTA AIR LINES INCORPORATED+ 166,526
50,817 FEDEX CORPORATION 3,819,406
134,441 SOUTHWEST AIRLINES COMPANY 1,910,406
5,896,338
-----------
TRANSPORTATION EQUIPMENT - 2.67%
143,477 BOEING COMPANY 5,892,601
15,948 BRUNSWICK CORPORATION 651,157
25,337 DANA CORPORATION 503,193
95,423 DELPHI CORPORATION 950,413
311,903 FORD MOTOR COMPANY 4,232,524
33,755 GENERAL DYNAMICS CORPORATION 3,015,334
95,713 GENERAL MOTORS CORPORATION 4,508,082
87
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (continued)
29,628 GENUINE PARTS COMPANY $ 969,428
20,029 GOODRICH CORPORATION 562,214
51,598 HARLEY-DAVIDSON INCORPORATED 2,752,237
146,261 HONEYWELL INTERNATIONAL INCORPORATED 4,950,935
32,112 JOHNSON CONTROLS INCORPORATED 1,899,425
76,788 LOCKHEED MARTIN CORPORATION 3,504,604
11,734 NAVISTAR INTERNATIONAL CORPORATION+ 538,004
31,784 NORTHROP GRUMMAN CORPORATION 3,128,181
29,808 PACCAR INCORPORATED 1,676,402
23,458 TEXTRON INCORPORATED 1,246,793
87,821 UNITED TECHNOLOGIES CORPORATION 7,578,952
48,560,479
--------------
TRANSPORTATION SERVICES - 0.03%
23,859 SABRE HOLDINGS CORPORATION 591,942
--------------
WATER TRANSPORTATION - 0.27%
107,295 CARNIVAL CORPORATION 4,818,618
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.83%
19,115 AMERISOURCEBERGEN CORPORATION 1,045,208
20,668 BROWN-FORMAN CORPORATION CLASS B 985,037
74,086 CARDINAL HEALTH INCORPORATED 5,104,526
49,568 MCKESSON CORPORATION 1,491,501
75,328 SAFEWAY INCORPORATED+ 1,550,250
22,889 SUPERVALU INCORPORATED 699,030
109,800 SYSCO CORPORATION 4,287,690
15,163,242
--------------
WHOLESALE TRADE-DURABLE GOODS - 0.05%
22,265 VISTEON CORPORATION 213,076
15,541 WW GRAINGER INCORPORATED 745,968
959,044
--------------
TOTAL COMMON STOCK (COST $1,493,348,252) 1,781,746,338
--------------
COLLATERAL FOR SECURITIES LENDING - 11.68%
COLLATERAL FOR SECURITY LENDING 212,187,464
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $212,187,464) 212,187,464
--------------
RIGHTS - 0.00%
32,300 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
88
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 1.77%
MUTUAL FUND - 1.63%
29,664,911 WELLS FARGO MONEY MARKET TRUST~ $ 29,664,911
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
US TREASURY BILLS - 0.14%
$1,130,000 US TREASURY BILL#^ 0.87% 05/13/2004 1,128,765
305,000 US TREASURY BILL#^ 0.90 05/13/2004 304,665
995,000 US TREASURY BILL#^ 0.95 05/13/2004 993,906
2,427,336
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $32,092,354) 32,092,247
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,737,628,070)* 111.56% $2,026,026,049
OTHER ASSETS AND LIABILITIES, NET (11.56) (209,922,881)
------ --------------
TOTAL NET ASSETS 100.00% $1,816,103,168
====== ==============
+ NON-INCOME EARNING SECURITIES.
++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $9,647,519.
^ 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.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS (SEE NOTE 2)
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
89
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.62%
AUSTRALIA - 4.06%
349,100 AMCOR LIMITED (RUBBER & MISCELLANEOUS PLASTICS
PRODUCTS) $ 2,132,169
1,277,500 BHP BILLITON LIMITED (OIL & GAS EXTRACTION) 11,957,300
546,600 NEWS CORPORATION LIMITED (PRINTING, PUBLISHING &
ALLIED INDUSTRIES) 4,915,827
19,005,296
-----------
AUSTRIA - 0.27%
8,500 ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG
(DEPOSITORY INSTITUTIONS) 1,272,274
-----------
BRAZIL - 0.53%
100,800 UNIBANCO - UNIAO DE BANCOS BRASILEIROS SA ADR
(DEPOSITORY INSTITUTIONS) 2,466,576
-----------
CANADA - 2.23%
107,950 CANADIAN NATIONAL RAILWAY COMPANY (RAILROAD
TRANSPORTATION) 4,208,756
52,900 ENCANA CORPORATION (OIL & GAS EXTRACTION) 2,281,835
83,140 LOBLAW COMPANIES LIMITED (FOOD STORES) 3,960,102
10,450,693
-----------
DENMARK - 0.52%
345 A P MOLLER - MAERSK A S (LOCAL & SUB-TRANSIT &
INTERURBAN HIGHWAY PASS TRANSPORTATION) 2,460,116
-----------
FINLAND - 2.32%
362,200 NOKIA OYJ (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 7,424,357
272,600 STORA ENSO OYJ (PAPER & ALLIED PRODUCTS) 3,430,363
10,854,720
-----------
FRANCE - 10.95%
52,900 ACCOR SA (METAL MINING) 2,143,329
109,600 ALCATEL SA (COMMUNICATIONS)+ 1,729,378
162,100 ARCELOR SA (PRIMARY METAL INDUSTRIES) 2,940,246
43,740 AVENTIS SA (CHEMICALS & ALLIED PRODUCTS) 3,362,176
216,600 AXA (INSURANCE CARRIERS) 4,519,709
93,100 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 5,689,610
70,000 BOUYGUES SA (ENGINEERING CONSTRUCTION) 2,408,632
37,900 BUSINESS OBJECTS SA ADR (BUSINESS SERVICES)+ 1,080,150
10,900 CASINO GUICHARD-PERRACHON SA (FOOD STORES) 1,045,475
97,700 CREDIT AGRICOLE SA (DEPOSITORY INSTITUTIONS) 2,551,337
160,110 FRANCE TELECOM SA (COMMUNICATIONS) 4,096,505
30,800 LVMH MOET HENNESSY LOUIS VUITTON SA (CONSUMER
SERVICES)+ 2,263,426
46,000 PEUGEOT SA (AUTOMOTIVE DEALERS & GASOLINE
SERVICE STATIONS)+ 2,343,697
82,500 TOTAL SA (OIL & GAS EXTRACTION) 15,146,730
51,320,400
-----------
GERMANY - 6.10%
15,300 ALTANA AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 946,496
82,800 BAYERISCHE MOTOREN WERKE AG (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS)+ 3,366,987
270,700 DEUTSCHE TELEKOM AG (COMMUNICATIONS)+ 4,863,512
56,450 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 3,718,288
43,720 SAP AG (BUSINESS SERVICES) 6,912,009
90
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (continued)
89,830 SIEMENS AG (WHOLESALE TRADE NON-DURABLE GOODS) $ 6,631,219
86,200 T-ONLINE INTERNATIONAL AG (BUSINESS SERVICES)+ 1,027,527
60,900 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) 1,131,575
28,597,613
------------
GREECE - 0.68%
103,300 ALPHA BANK AE (DEPOSITORY INSTITUTIONS) 3,181,235
------------
HONG KONG - 0.58%
297,500 SUNG HUNG KAI PROPERTIES LIMITED (REAL ESTATE) 2,720,652
------------
IRELAND - 1.36%
140,800 ANGLO IRISH BANK CORPORATION PLC (DEPOSITORY
INSTITUTIONS) 2,249,367
204,777 BANK OF IRELAND PLC (DEPOSITORY INSTITUTIONS) 2,556,756
10,000 DEPFA BANK PLC (DEPOSITORY INSTITUTIONS) 1,572,984
6,379,107
------------
ITALY - 3.32%
196,400 BANCO POPOLARE DI VERONA E NOVARA SCRL (DEPOSITORY
INSTITUTIONS) 3,195,537
418,000 ENI SPA (OIL & GAS EXTRACTION) 8,403,765
144,800 MEDIASET SPA (COMMUNICATIONS) 1,606,832
493,200 UNICREDITO ITALIANO SPA (DEPOSITORY INSTITUTIONS) 2,351,631
15,557,765
------------
JAPAN - 23.69%
187,368 CANON INCORPORATED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 9,707,440
147,800 DAIWA HOUSE INDUSTRY COMPANY LIMITED (BUILDING
CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS) 1,886,657
257 EACCESS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT)+ 1,141,289
47,500 FANUC LIMITED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 2,981,449
1,000 JAPAN TELECOM HOLDINGS COMPANY LIMITED
(COMMUNICATIONS) 2,460,710
194,400 JFE HOLDINGS INCORPORATED (PRIMARY METAL INDUSTRIES) 5,316,172
103,600 KAO CORPORATION (CHEMICALS & ALLIED PRODUCTS) 2,370,049
25,600 KEYENCE CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 6,240,361
1,229,000 KOMATSU LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 7,796,799
91,000 MITSUBISHI ESTATE COMPANY LIMITED (REAL ESTATE) 1,234,210
1,062 MITSUBISHI TOKYO FINANCIAL GROUP INCORPORATED
(DEPOSITORY INSTITUTIONS) 10,514,346
197,000 MITSUI FUDOSAN COMPANY LIMITED (REAL ESTATE) 2,478,714
741,000 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 8,297,833
660,793 NOMURA HOLDINGS INCORPORATED (SECURITY & COMMODITY
BROKERS, DEALERS, EXCHANGES & SERVICES) 12,036,360
2,085 NTT DOCOMO INCORPORATED (COMMUNICATIONS) 4,609,506
56,700 RINNAI CORPORATION (BUILDING MATERIALS, HARDWARE,
GARDEN SUPPLY & MOBILE HOME DEALERS) 1,523,300
280,842 SHARP CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 5,018,362
104,900 SHIN-ETSU CHEMICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 4,416,418
10,300 SMC CORPORATION (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 1,228,654
235,800 TOYOTA MOTOR CORPORATION (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 8,794,194
1,301 UFJ HOLDINGS INCORPORATED (DEPOSITORY INSTITUTIONS) 8,278,579
77,400 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 2,663,450
110,994,852
------------
91
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEXICO - 0.80%
35,620 AMERICA MOVIL SA DE CV ADR SERIES L (COMMUNICATIONS) $ 1,376,713
79,431 CEMEX SA DE CV (STONE, CLAY, GLASS & CONCRETE
PRODUCTS) 2,368,632
3,745,345
-----------
NETHERLANDS - 4.85%
149,400 ASML HOLDING NV (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT)+ 2,737,427
46,600 EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY
(TRANSPORTATION BY AIR) 1,005,026
140,800 ING GROEP NV (FINANCIAL SERVICES) 3,093,745
367,600 KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS NV (ELECTRONIC
& OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 10,629,474
111,200 ROYAL DUTCH PETROLEUM COMPANY (PETROLEUM REFINING
& RELATED INDUSTRIES) 5,281,638
22,747,310
-----------
PORTUGAL - 0.41%
687,900 ELECTRICIDADE DE PORTUGAL SA (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 1,944,319
-----------
SOUTH KOREA - 0.67%
9,000 SAMSUNG ELECTRONICS (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT)! 1,320,817
2,420 SAMSUNG ELECTRONICS COMPANY LIMITED (ELECTRONIC &
OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT) 1,207,414
4,200 SAMSUNG ELECTRONICS COMPANY LIMITED GDR (ELECTRONIC
& OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT) 605,850
3,134,081
-----------
SPAIN - 1.68%
523,100 BANCO SANTANDER CENTRAL HISPANO SA (DEPOSITORY
INSTITUTIONS) 5,689,084
106,341 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,203,295
7,892,379
-----------
SWEDEN - 1.78%
92,900 AB SKF CLASS B (PRIMARY METAL INDUSTRIES) 3,363,041
94,100 HENNES & MAURITZ AB CLASS B (APPAREL & OTHER
FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS) 2,533,025
878,800 TELEFONAKTIEBOLAGET LM ERICSSON CLASS B
(COMMUNICATIONS)+ 2,435,511
8,331,577
-----------
SWITZERLAND - 10.36%
43,400 COMPAGNIE FINANCIERE RICHEMONT AG (GENERAL MERCHANDISE
STORES) 1,166,492
104,400 CREDIT SUISSE GROUP (NON-DEPOSITORY CREDIT
INSTITUTIONS)+ 3,617,761
45,610 HOLCIM LIMITED (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 2,439,182
32,000 NESTLE SA (FOOD & KINDRED PRODUCTS) 8,158,819
209,100 NOVARTIS AG (CHEMICALS & ALLIED PRODUCTS) 8,879,962
54,200 ROCHE HOLDING AG (HEALTH SERVICES) 5,294,431
3,600 SGS SOCIETE GENERALE DE SURVEILLANCE HOLDING SA
(BUSINESS SERVICES) 1,997,711
221,900 STMICROELECTRONICS NV (ELECTRONIC & OTHER
ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 5,230,223
45,360 SWISS REINSURANCE (INSURANCE CARRIERS) 3,125,806
116,100 UBS AG (FINANCIAL SERVICES) 8,623,760
48,534,147
-----------
92
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TAIWAN - 0.42%
188,400 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
ADR (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT)+ $ 1,966,896
------------
UNITED KINGDOM - 18.63%
738,100 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 6,501,154
703,900 BP PLC (OIL & GAS EXTRACTION) 5,899,143
207,100 BRITISH SKY BROADCASTING PLC (COMMUNICATIONS) 2,582,516
743,100 CENTRICA PLC (ELECTRIC, GAS & SANITARY SERVICES) 3,117,247
903,200 COMPASS GROUP PLC (EATING & DRINKING PLACES) 5,950,949
277,800 DIAGEO PLC (FOOD & KINDRED PRODUCTS) 3,619,859
337,700 GLAXOSMITHKLINE PLC (CHEMICALS & ALLIED PRODUCTS) 6,628,503
18,500 GLAXOSMITHKLINE PLC ADR (CHEMICALS & ALLIED
PRODUCTS) 739,075
583,300 HSBC HOLDINGS PLC (DEPOSITORY INSTITUTIONS) 8,672,686
221,200 HSBC HOLDINGS PLC (HONG KONG REGISTERED)
(NON-DEPOSITORY CREDIT INSTITUTIONS) 3,335,986
236,300 RECKITT BENCKISER PLC (CHEMICALS & ALLIED PRODUCTS) 5,841,161
204,100 RIO TINTO PLC (METAL MINING) 5,033,947
185,950 ROYAL BANK OF SCOTLAND GROUP PLC (DEPOSITORY
INSTITUTIONS) 5,666,225
453,100 SMITH & NEPHEW PLC (CHEMICALS & ALLIED PRODUCTS) 4,459,300
469,500 TESCO PLC (FOOD & KINDRED PRODUCTS) 2,120,519
5,385,700 VODAFONE GROUP PLC (COMMUNICATIONS) 12,743,905
433,400 WPP GROUP PLC (COMMUNICATIONS) 4,384,898
87,297,073
------------
USA - 0.41%
66,230 UTSTARCOM INCORPORATED (COMMUNICATIONS)+ 1,904,775
------------
TOTAL COMMON STOCK (COST $365,674,322) 452,759,201
------------
COLLATERAL FOR SECURITIES LENDING - 6.93%
COLLATERAL FOR SECURITY LENDING 32,499,510
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $32,499,510) 32,499,510
------------
SHORT-TERM INVESTMENTS - 3.07%
MUTUAL FUND - 3.07%
14,367,873 WELLS FARGO MONEY MARKET TRUST~ 14,367,873
------------
TOTAL SHORT-TERM INVESTMENTS (COST $14,367,873) 14,367,873
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $412,541,705)* 106.62% $499,626,584
OTHER ASSETS AND LIABILITIES, NET (6.62) (31,029,326)
------ ------------
TOTAL NET ASSETS 100.00% $468,597,258
====== ============
+ NON-INCOME EARNING 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.
~ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
93
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 97.75%
AMUSEMENT & RECREATION SERVICES - 1.11%
24,300 INTERNATIONAL GAME TECHNOLOGY $ 1,092,528
-------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS
- 1.05%
29,400 D.R. HORTON INCORPORATED 1,041,642
-------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME
DEALERS - 1.04%
27,400 HOME DEPOT INCORPORATED 1,023,664
-------------
BUSINESS SERVICES - 5.96%
22,300 ELECTRONIC ARTS INCORPORATED+ 1,203,308
50,000 MICROSOFT CORPORATION 1,248,500
102,400 ORACLE CORPORATION+ 1,229,824
23,300 SYMANTEC CORPORATION+ 1,078,790
23,300 YAHOO! INCORPORATED+ 1,132,147
5,892,569
-------------
CHEMICALS & ALLIED PRODUCTS - 8.72%
14,000 AVON PRODUCTS INCORPORATED 1,062,180
10,300 GENENTECH INCORPORATED+ 1,089,946
86,500 PFIZER INCORPORATED 3,031,825
12,300 PROCTER & GAMBLE COMPANY 1,290,024
19,700 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 1,249,177
20,900 WATSON PHARMACEUTICALS INCORPORATED+ 894,311
8,617,463
-------------
DEPOSITORY INSTITUTIONS - 10.01%
14,000 BANK OF AMERICA CORPORATION 1,133,720
19,500 BANK ONE CORPORATION 1,063,140
38,600 CITIGROUP INCORPORATED 1,995,620
21,800 FLEETBOSTON FINANCIAL CORPORATION 978,820
10,800 GOLDEN WEST FINANCIAL CORPORATION 1,209,060
38,400 JP MORGAN CHASE & COMPANY 1,610,880
20,300 NORTHERN TRUST CORPORATION 945,777
18,300 STATE STREET CORPORATION 953,979
9,890,996
-------------
EATING & DRINKING PLACES - 0.97%
23,500 WENDY'S INTERNATIONAL INCORPORATED 956,215
-------------
EDUCATIONAL SERVICES - 1.10%
12,600 APOLLO GROUP INCORPORATED CLASS A+ 1,084,986
-------------
ELECTRIC, GAS & SANITARY SERVICES - 1.28%
18,400 EXELON CORPORATION 1,267,208
-------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 14.00%
20,400 ANALOG DEVICES INCORPORATED 979,404
29,900 BROADCOM CORPORATION CLASS A+ 1,171,183
97,800 GENERAL ELECTRIC COMPANY 2,984,856
94
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT (continued)
14,300 HARMAN INTERNATIONAL INDUSTRIES INCORPORATED $ 1,138,280
35,900 INTEL CORPORATION 976,480
10,300 INTERNATIONAL BUSINESS MACHINES CORPORATION 945,952
299,300 LUCENT TECHNOLOGIES INCORPORATED+ 1,230,123
61,500 MOTOROLA INCORPORATED 1,082,400
45,600 NETWORK APPLIANCE INCORPORATED+ 978,120
16,600 QUALCOMM INCORPORATED 1,102,572
42,700 TEXAS INSTRUMENTS INCORPORATED 1,247,694
13,837,064
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 2.08%
13,600 FORTUNE BRANDS INCORPORATED 1,042,168
12,800 ILLINOIS TOOL WORKS INCORPORATED 1,014,144
2,056,312
-----------
FOOD & KINDRED PRODUCTS - 1.02%
12,200 HERSHEY FOODS CORPORATION 1,010,770
-----------
FOOD STORES - 1.03%
27,000 STARBUCKS CORPORATION+ 1,019,250
-----------
GENERAL MERCHANDISE STORES - 2.13%
19,100 FEDERATED DEPARTMENT STORES INCORPORATED 1,032,355
30,900 JC PENNEY COMPANY INCORPORATED 1,074,702
2,107,057
-----------
HEALTH SERVICES - 0.99%
29,400 CAREMARK RX INCORPORATED+ 977,550
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 1.04%
25,400 STARWOOD HOTELS & RESORTS WORLDWIDE INCORPORATED 1,028,700
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 11.08%
37,200 APPLE COMPUTER INCORPORATED+ 1,006,260
50,700 APPLIED MATERIALS INCORPORATED+ 1,083,966
13,100 CATERPILLAR INCORPORATED 1,035,817
92,300 CISCO SYSTEMS INCORPORATED+ 2,170,896
82,600 EMC CORPORATION+ 1,124,186
16,200 INGERSOLL-RAND COMPANY CLASS A 1,095,930
13,300 LEXMARK INTERNATIONAL INCORPORATED+ 1,223,600
17,800 PARKER HANNIFIN CORPORATION 1,005,700
13,900 VARIAN MEDICAL SYSTEMS INCORPORATED+ 1,199,709
10,946,064
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 1.00%
23,100 ACE LIMITED 985,446
-----------
INSURANCE CARRIERS - 5.29%
12,500 AETNA INCORPORATED 1,121,500
34,000 ALLSTATE CORPORATION 1,545,640
95
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS
-- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (continued)
18,500 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED $1,178,450
21,500 UNITEDHEALTH GROUP INCORPORATED 1,385,460
5,231,050
----------
LEATHER & LEATHER PRODUCTS - 1.15%
27,600 COACH INCORPORATED+ 1,131,324
----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 4.25%
35,100 AGILENT TECHNOLOGIES INCORPORATED+ 1,110,213
24,900 BOSTON SCIENTIFIC CORPORATION+ 1,055,262
10,600 C.R. BARD INCORPORATED 1,034,984
13,800 ST JUDE MEDICAL INCORPORATED+ 994,980
4,195,439
----------
METAL MINING - 2.19%
26,400 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 1,031,976
13,800 PHELPS DODGE CORPORATION+ 1,126,908
2,158,884
----------
MOTION PICTURES - 0.97%
38,200 WALT DISNEY COMPANY 954,618
----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.22%
17,300 UNITED PARCEL SERVICE INCORPORATED CLASS B 1,208,232
----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 3.49%
15,400 CAPITAL ONE FINANCIAL CORPORATION 1,161,622
26,000 CIT GROUP INCORPORATED 989,300
47,100 MBNA CORPORATION 1,301,373
3,452,295
----------
OIL & GAS EXTRACTION - 5.97%
28,500 APACHE CORPORATION 1,230,345
20,100 KERR-MCGEE CORPORATION 1,035,150
25,200 OCCIDENTAL PETROLEUM CORPORATION 1,160,460
20,500 SCHLUMBERGER LIMITED 1,308,925
46,125 XTO ENERGY INCORPORATED 1,164,195
5,899,075
----------
PETROLEUM REFINING & RELATED INDUSTRIES - 1.15%
16,200 CONOCOPHILLIPS 1,130,922
----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.17%
14,900 NIKE INCORPORATED CLASS B 1,160,263
----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 4.33%
80,900 AMERITRADE HOLDING CORPORATION+ 1,245,860
14,200 GOLDMAN SACHS GROUP INCORPORATED 1,481,770
26,100 MERRILL LYNCH & COMPANY INCORPORATED 1,554,516
4,282,146
----------
96
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE NON-DURABLE GOODS - 0.96%
24,200 SYSCO CORPORATION $ 945,010
------------
TOTAL COMMON STOCK (COST $84,598,488) 96,584,742
------------
COLLATERAL FOR SECURITIES LENDING - 12.36%
COLLATERAL FOR SECURITY LENDING 12,213,589
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $12,213,589) 12,213,589
------------
SHORT-TERM INVESTMENTS - 2.06%
MUTUAL FUND - 2.06%
2,035,360 WELLS FARGO MONEY MARKET TRUST~ 2,035,360
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,035,360) 2,035,360
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $98,847,437)* 112.17% $110,833,691
OTHER ASSETS AND LIABILITIES, NET (12.17) (12,021,513)
------ ------------
TOTAL NET ASSETS 100.00% $ 98,812,178
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
97
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 95.42%
AMUSEMENT & RECREATION SERVICES - 0.97%
158,200 CAESARS ENTERTAINMENT INCORPORATED+ $ 2,062,928
-----------
APPAREL & ACCESSORY STORES - 3.12%
62,900 ABERCROMBIE & FITCH COMPANY CLASS A 2,128,536
100,800 GAP INCORPORATED 2,209,536
114,300 LIMITED BRANDS 2,286,000
6,624,072
-----------
BUSINESS SERVICES - 4.58%
135,200 AMDOCS LIMITED+ 3,757,208
49,700 AUTODESK INCORPORATED 1,571,514
51,100 GETTY IMAGES INCORPORATED+ 2,758,378
65,900 MICROSOFT CORPORATION 1,645,523
9,732,623
-----------
CHEMICALS & ALLIED PRODUCTS - 4.03%
51,400 DOW CHEMICAL COMPANY 2,070,392
14,600 INVITROGEN CORPORATION+ 1,046,674
89,000 PFIZER INCORPORATED 3,119,450
58,600 ROHM & HAAS COMPANY 2,334,624
8,571,140
-----------
COMMUNICATIONS - 5.35%
92,000 AVAYA INCORPORATED+ 1,460,960
149,900 BELLSOUTH CORPORATION 4,150,731
54,200 COMCAST CORPORATION CLASS A+ 1,557,708
115,000 VERIZON COMMUNICATIONS INCORPORATED 4,202,100
11,371,499
-----------
DEPOSITORY INSTITUTIONS - 12.96%
73,600 BANK OF AMERICA CORPORATION 5,960,128
180,800 CITIGROUP INCORPORATED 9,347,360
155,100 JP MORGAN CHASE & COMPANY 6,506,445
51,500 NATIONAL CITY CORPORATION 1,832,370
183,000 SOVEREIGN BANCORP INCORPORATED 3,919,860
27,566,163
-----------
EATING & DRINKING PLACES - 1.75%
130,600 MCDONALD'S CORPORATION 3,731,242
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.64%
134,700 AES CORPORATION+ 1,148,991
36,900 EXELON CORPORATION 2,541,303
29,600 FPL GROUP INCORPORATED 1,978,760
57,100 QUESTAR CORPORATION 2,080,724
7,749,778
-----------
98
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 5.88%
499,500 AGERE SYSTEMS INCORPORATED CLASS A+ $ 1,603,395
66,300 ANDREW CORPORATION+ 1,160,250
129,000 GENERAL ELECTRIC COMPANY 3,937,080
93,100 INTEL CORPORATION 2,532,320
36,700 JABIL CIRCUIT INCORPORATED+ 1,080,081
277,700 LUCENT TECHNOLOGIES INCORPORATED+ 1,141,347
49,100 POLYCOM INCORPORATED+ 1,042,393
12,496,866
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT - 0.77%
24,300 BALL CORPORATION 1,647,054
-----------
GENERAL MERCHANDISE STORES - 1.23%
75,900 MAY DEPARTMENT STORES COMPANY 2,624,622
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.93%
59,800 RADIOSHACK CORPORATION 1,982,968
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.11%
5,000 MGM MIRAGE+ 226,700
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.24%
13,000 3M COMPANY 1,064,310
40,600 APPLE COMPUTER INCORPORATED+ 1,098,230
92,500 BLACK & DECKER CORPORATION 5,266,950
62,800 LAM RESEARCH CORPORATION+ 1,583,188
9,012,678
-----------
INSURANCE CARRIERS - 5.71%
55,900 AMERICAN INTERNATIONAL GROUP INCORPORATED 3,988,465
19,900 ANTHEM INCORPORATED+ 1,803,736
34,000 LINCOLN NATIONAL CORPORATION 1,608,880
22,300 MGIC INVESTMENT CORPORATION 1,432,329
46,700 PACIFICARE HEALTH SYSTEMS INCORPORATED+ 1,846,985
33,900 SAFECO CORPORATION 1,463,463
12,143,858
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 2.88%
27,600 FISHER SCIENTIFIC INTERNATIONAL INCORPORATED+ 1,519,104
20,100 MILLIPORE CORPORATION+ 1,032,738
59,500 ROCKWELL AUTOMATION INCORPORATED 2,062,865
63,200 TERADYNE INCORPORATED+ 1,506,056
6,120,763
-----------
METAL MINING - 0.85%
22,100 PHELPS DODGE CORPORATION+ 1,804,686
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.50%
48,900 HASBRO INCORPORATED 1,063,575
-----------
99
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 2.54%
49,100 COSTCO WHOLESALE CORPORATION+ $ 1,844,196
56,400 CVS CORPORATION 1,990,920
62,000 STAPLES INCORPORATED 1,574,180
5,409,296
-----------
MOTION PICTURES - 1.32%
111,900 WALT DISNEY COMPANY 2,796,381
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 5.59%
25,000 AMERICAN EXPRESS COMPANY 1,296,250
59,300 CIT GROUP INCORPORATED 2,256,365
18,000 COUNTRYWIDE FINANCIAL CORPORATION 1,726,200
24,800 FANNIE MAE 1,843,880
95,100 MBNA CORPORATION 2,627,613
163,800 PROVIDIAN FINANCIAL CORPORATION+ 2,145,780
11,896,088
-----------
OIL & GAS EXTRACTION - 1.82%
115,000 CHESAPEAKE ENERGY CORPORATION 1,541,000
50,800 NABORS INDUSTRIES LIMITED+ 2,324,100
3,865,100
-----------
PAPER & ALLIED PRODUCTS - 1.56%
52,600 KIMBERLY-CLARK CORPORATION 3,319,060
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 7.59%
47,900 CHEVRONTEXACO CORPORATION 4,204,662
34,300 CONOCOPHILLIPS 2,394,483
127,100 EXXON MOBIL CORPORATION 5,286,089
126,700 MARATHON OIL CORPORATION 4,265,989
16,151,223
-----------
PRIMARY METAL INDUSTRIES - 2.57%
98,300 ALCOA INCORPORATED 3,410,027
53,300 INTERNATIONAL STEEL GROUP INCORPORATED+ 2,062,710
5,472,737
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.98%
52,900 VIACOM INCORPORATED CLASS B 2,074,209
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES
- 6.36%
24,000 BEAR STEARNS COMPANIES INCORPORATED 2,104,320
133,100 FRIEDMAN BILLINGS RAMSEY GROUP INCORPORATED CLASS A 3,592,369
21,000 GOLDMAN SACHS GROUP INCORPORATED 2,191,350
57,000 MERRILL LYNCH & COMPANY INCORPORATED 3,394,920
39,000 MORGAN STANLEY 2,234,700
13,517,659
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.97%
375,200 CORNING INCORPORATED+ 4,194,736
-----------
100
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TOBACCO PRODUCTS - 1.34%
52,500 ALTRIA GROUP INCORPORATED $ 2,858,625
------------
TRANSPORTATION BY AIR - 1.00%
166,200 AMR CORPORATION+ 2,115,726
------------
TRANSPORTATION EQUIPMENT - 1.28%
32,700 GOODRICH CORPORATION 917,889
21,000 UNITED TECHNOLOGIES CORPORATION 1,812,300
2,730,189
------------
TOTAL COMMON STOCK (COST $186,319,744) 202,934,244
------------
COLLATERAL FOR SECURITIES LENDING - 17.74%
COLLATERAL FOR SECURITY LENDING 37,724,746
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $37,724,746) 37,724,746
------------
SHORT-TERM INVESTMENTS - 5.03%
MUTUAL FUND - 5.03%
10,690,546 WELLS FARGO MONEY MARKET TRUST~ 10,690,546
------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,690,546) 10,690,546
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $234,735,036)* 118.19% $251,349,536
OTHER ASSETS AND LIABILITIES, NET (18.19) (38,684,876)
------ ------------
TOTAL NET ASSETS 100.00% $212,664,660
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
101
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.01%
APPAREL & ACCESSORY STORES - 3.16%
2,331,200 KOHLS CORPORATION+ $112,666,896
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 9.06%
1,348,400 FASTENAL COMPANY 72,395,596
3,421,317 HOME DEPOT INCORPORATED 127,820,403
2,183,900 LOWE'S COMPANIES INCORPORATED 122,582,307
322,798,306
------------
BUSINESS SERVICES - 22.62%
866,400 AUTOMATIC DATA PROCESSING INCORPORATED 36,388,800
3,379,200 EBAY INCORPORATED+ 234,279,936
3,850,000 FIRST DATA CORPORATION 162,316,000
2,822,768 FISERV INCORPORATED+ 100,970,411
7,325,620 MICROSOFT CORPORATION 182,920,732
1,795,900 SUNGARD DATA SYSTEMS INCORPORATED+ 49,207,660
1,466,100 VERITAS SOFTWARE CORPORATION+ 39,452,751
805,536,290
------------
CHEMICALS & ALLIED PRODUCTS - 7.90%
1,425,600 AMGEN INCORPORATED+ 82,927,152
625,100 GENENTECH INCORPORATED+ 66,148,082
3,776,025 PFIZER INCORPORATED 132,349,676
281,424,910
------------
DEPOSITORY INSTITUTIONS - 1.46%
997,200 STATE STREET CORPORATION 51,984,036
------------
EDUCATIONAL SERVICES - 1.62%
670,400 APOLLO GROUP INCORPORATED CLASS A+ 57,728,144
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 10.59%
7,215,650 INTEL CORPORATION 196,265,680
1,440,500 LINEAR TECHNOLOGY CORPORATION 53,327,310
6,292,400 NOKIA OYJ ADR 127,609,872
377,202,862
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 4.15%
4,153,610 PAYCHEX INCORPORATED 147,868,516
------------
GENERAL MERCHANDISE STORES - 0.88%
867,100 FAMILY DOLLAR STORES INCORPORATED 31,172,245
------------
INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT - 10.20%
7,745,600 CISCO SYSTEMS INCORPORATED+ 182,176,512
3,422,600 DELL INCORPORATED+ 115,067,812
4,847,000 EMC CORPORATION+ 65,967,670
363,211,994
------------
102
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 5.05%
2,519,116 AMERICAN INTERNATIONAL GROUP INCORPORATED $ 179,738,927
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.34%
3,985,500 MEDTRONIC INCORPORATED 190,307,625
--------------
MISCELLANEOUS RETAIL - 2.60%
1,548,900 WAL-MART STORES INCORPORATED 92,453,841
--------------
PERSONAL SERVICES - 2.74%
2,244,150 CINTAS CORPORATION 97,598,083
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES &
SERVICES - 10.18%
11,648,787 CHARLES SCHWAB CORPORATION 135,242,417
763,700 FRANKLIN RESOURCES INCORPORATED 42,522,816
1,769,650 GOLDMAN SACHS GROUP INCORPORATED 184,662,978
362,428,211
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.46%
755,480 CARDINAL HEALTH INCORPORATED 52,052,572
--------------
TOTAL COMMON STOCK (COST $2,973,213,252) 3,526,173,458
--------------
COLLATERAL FOR SECURITIES LENDING - 6.02%
COLLATERAL FOR SECURITY LENDING 214,294,999
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $214,294,999) 214,294,999
--------------
SHORT-TERM INVESTMENTS - 0.95%
MUTUAL FUND - 0.95%
33,844,662 WELLS FARGO MONEY MARKET TRUST~ 33,844,662
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $33,844,662) 33,844,662
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $3,221,352,913)* 105.98% $3,774,313,119
OTHER ASSETS AND LIABILITIES, NET (5.98) (213,095,411)
------ --------------
TOTAL NET ASSETS 100.00% $3,561,217,708
====== ==============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
103
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.22%
AUSTRALIA - 4.51%
312,100 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING
INDUSTRIES) $ 1,501,122
243,100 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,172,961
195,300 CALTEX AUSTRALIA LIMITED (PETROLEUM REFINING & RELATED
INDUSTRIES) 1,069,063
25,200 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY
INSTITUTIONS) 596,409
198,700 SEVEN NETWORK LIMITED (PRINTING, PUBLISHING &
ALLIED INDUSTRIES) 800,965
561,900 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 1,947,586
7,088,106
-----------
AUSTRIA - 0.46%
3,800 OMV AG (OIL & GAS EXTRACTION) 719,149
-----------
BELGIUM - 0.84%
22,700 KBC BANK VERZEKERINGS HOLDINGS (DEPOSITORY INSTITUTIONS) 1,327,844
-----------
DENMARK - 1.02%
15,900 BANG AND OLUFSEN AS (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 842,471
16,800 DANSKE BANK (DEPOSITORY INSTITUTIONS) 379,912
10,600 TDS AS (COMMUNICATIONS) 386,679
1,609,062
-----------
FINLAND - 1.84%
37,400 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 382,392
88,100 KEMIRA OYJ (CHEMICALS & ALLIED PRODUCTS) 1,175,764
38,500 KESKO OYJ (FOOD STORES) 676,568
71,100 M-REAL OYJ (PAPER & ALLIED PRODUCTS) 659,676
2,894,400
-----------
FRANCE - 9.45%
6,753 ASSURANCES GENERALES DE FRANCE (INSURANCE CARRIERS) 419,085
52,800 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 3,226,760
7,600 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 438,961
44,900 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS &
CONCRETE PRODUCTS) 2,268,340
7,000 IMERYS SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,666,257
13,700 RALLYE SA (GENERAL MERCHANDISE STORES) 798,861
24,100 RENAULT SA (TRANSPORTATION EQUIPMENT) 1,668,881
24,300 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 2,075,417
5,300 TOTAL SA (OIL & GAS EXTRACTION) 973,063
31,800 VALEO SA (TRANSPORTATION EQUIPMENT) 1,319,301
14,854,926
-----------
GERMANY - 6.57%
76,700 BAYER AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 1,867,214
13,335 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 878,359
11,500 FRESENIUS AG (MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 805,399
43,163 IKB DEUTSCHE INDUSTRIEBANK AG (DEPOSITORY INSTITUTIONS) 1,047,594
48,700 KARSTADTQUELLE AG (GENERAL MERCHANDISE STORES) 1,076,051
44,500 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 1,585,888
104
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (continued)
99,900 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) $ 1,856,229
53,300 TUI AG (TRANSPORTATION BY AIR) 1,215,026
10,331,760
-----------
GREECE - 0.31%
89,000 INTRACOM SA (COMMUNICATIONS) 489,984
-----------
HONG KONG - 1.17%
336,000 CITIC PACIFIC LIMITED (MISCELLANEOUS RETAIL) 948,775
2,085,000 CNOOC LIMITED (OIL & GAS EXTRACTION)+ 889,813
1,838,588
-----------
IRELAND - 0.92%
88,600 IRISH LIFE AND PERMANENT PLC (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,452,459
-----------
ITALY - 3.93%
68,400 BANCA POPOLARE DI MILANO SCRL (DEPOSITORY
INSTITUTIONS) 397,587
553,000 CASSA DI RISPARMIO DI FIRENZ SPA (DEPOSITORY
INSTITUTIONS) 992,184
537,300 COMPAGNIE INDUSTRIALI RIUNITE (PRINTING, PUBLISHING &
ALLIED INDUSTRIES) 1,039,948
142,300 CREDITO EMILIANO SPA (DEPOSITORY INSTITUTIONS) 989,773
60,395 ENI SPA (OIL & GAS EXTRACTION) 1,214,224
169,000 ERG SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 888,883
36,940 RIUNIONE ADRIATICA SI SICURTA SPA (INSURANCE CARRIERS) 660,502
6,183,101
-----------
JAPAN - 23.72%
14,100 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,030,038
139,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 1,618,460
32,200 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED
PRODUCTS) 823,300
69,700 DAIICHI PHARMACEUTICAL COMPANY LIMITED (MEASURING,
ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 1,353,333
20,500 DENSO CORPORATION (TRANSPORTATION EQUIPMENT) 467,006
59,700 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,126,458
31,600 HITACHI MAXELL LIMIED (MISCELLANEOUS MANUFACTURING
INDUSTRIES) 490,850
24,600 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 1,135,003
88,500 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC,
GAS & SANITARY SERVICES) 1,674,980
70,000 KIRIN BREWERY COMPANY LIMITED (FOOD & KINDRED
PRODUCTS) 755,611
23,000 KISSEI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 499,640
52,000 MAKITA CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 669,275
719,000 MARUBENI CORPORATION (BUSINESS SERVICES) 1,955,851
474,000 MITSUBISHI CHEMICAL CORPORATION (CHEMICALS & ALLIED
PRODUCTS) 1,448,859
96,200 NIHON UNISYS LIMITED (INDUSTRIAL & COMMERCIAL
MACHINERY & COMPUTER EQUIPMENT) 814,651
600 NIPPON TELEGRAPH & TELEPHONE CORPORATION
(COMMUNICATIONS) 3,402,701
75,600 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS) 846,580
27,600 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT
INSTITUTIONS) 1,896,862
44,500 RYOSAN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 975,249
39,450 SAMMY CORPORATION (MISCELLANEOUS MANUFACTURING
INDUSTRIES) 1,520,589
63,700 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 1,065,391
42,800 SHOWA SHELL SEKIYU KK (PETROLEUM REFINING & RELATED
INDUSTRIES) 382,191
105
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (continued)
41,000 TAISHO PHARMACEUTICAL COMPANY LIMITED (MEASURING,
ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) $ 792,137
13,100 TAKEFUJI CORPORATION (NON-DEPOSITORY CREDIT
INSTITUTIONS) 912,914
135,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED
PRODUCTS) 1,356,034
265,000 TOHO GAS COMPANY LIMITED (PETROLEUM REFINING & RELATED
INDUSTRIES) 967,943
220,000 TOSHIBA TEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 1,034,075
19,000 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS
MANUFACTURING INDUSTRIES) 420,051
117,500 TOYOTA MOTOR CORPORATION (AUTOMOTIVE DEALERS & GASOLINE
SERVICE STATIONS) 4,382,179
42,900 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS &
ALLIED PRODUCTS) 1,476,253
37,294,464
-----------
NETHERLANDS - 4.13%
47,500 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS)+ 1,059,460
167,800 AEGON NV (INSURANCE CARRIERS)+ 2,144,567
61,800 ING GROEP NV (FINANCIAL SERVICES) 1,357,908
44,200 OCE NV (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 753,378
25,000 ROYAL DUTCH PETROLEUM COMPANY (PETROLEUM REFINING &
RELATED INDUSTRIES) 1,187,419
6,502,732
-----------
NORWAY - 0.78%
75,600 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 495,496
10,420 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 655,628
10,420 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES)+ 75,579
1,226,703
-----------
PORTUGAL - 0.43%
272,700 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 673,590
-----------
SINGAPORE - 1.48%
128,000 FRASER & NEAVE LIMITED (FOOD & KINDRED PRODUCTS) 1,114,869
101,500 JARDINE STRATEGIC HOLDINGS (DEPOSITORY INSTITUTIONS) 501,410
508,900 SINGAPORE TELECOMMUNICATIONS LIMITED (COMMUNICATIONS) 707,375
2,323,654
-----------
SPAIN - 3.44%
119,800 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 2,178,878
168,900 IBERIA LINEAS AEREAS DE ESPANA SA (TRANSPORTATION BY
AIR) 550,034
129,600 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,685,202
5,414,114
-----------
SWEDEN - 2.20%
25,900 FORENINGSSPARBANKEN AB (DEPOSITORY INSTITUTIONS) 480,819
301,900 NORDEA AB (DEPOSITORY INSTITUTIONS) 2,061,694
62,390 SKANDINAVISKA ENSKILDA BANKEN AB (DEPOSITORY
INSTITUTIONS) 914,178
3,456,691
-----------
106
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND - 6.92%
8,600 CONVERIUM HOLDING AG (INSURANCE CARRIERS) $ 420,886
12,300 LONZA GROUP AG (CHEMICALS & ALLIED PRODUCTS) 627,695
2,115 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 534,239
20,600 SAURER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT)+ 907,353
2,900 SULZER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT) 721,080
6,200 SWISSCOM AG (COMMUNICATIONS) 2,035,916
54,500 UBS AG (FINANCIAL SERVICES) 4,048,190
3,100 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 767,139
38,600 VONTOBEL HOLDINGS AG (DEPOSITORY INSTITUTIONS) 822,670
10,885,168
-----------
UNITED KINGDOM - 25.10%
78,300 ALLIANCE & LEICESTER PLC (DEPOSITORY INSTITUTIONS) 1,257,727
134,200 ARRIVA PLC (TRANSPORTATION BY AIR) 931,687
82,714 AVIVA PLC (INSURANCE CARRIERS) 802,650
371,100 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 3,268,633
97,900 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 1,119,145
209,400 BBA GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY &
COMPUTER EQUIPMENT) 980,402
62,400 BERKELEY GROUP PLC (PRIVATE HOUSEHOLDS) 1,206,461
385,300 BIG FOOD GROUP PLC (FOOD STORES) 984,299
17,000 BOOTS GROUP PLC (GENERAL MERCHANDISE STORES) 193,555
164,400 BRADFORD & BINGLEY PLC (NON-DEPOSITORY CREDIT
INSTITUTIONS) 891,327
167,300 BRITISH VITA PLC (CHEMICALS & ALLIED PRODUCTS) 808,658
479,687 BT GROUP PLC (COMMUNICATIONS) 1,560,430
94,200 DAVIS SERVICE GROUP PLC (BUSINESS SERVICES) 642,300
529,200 DIXONS GROUP PLC (GENERAL MERCHANDISE STORES) 1,497,800
211,300 DS SMITH PLC (PAPER & ALLIED PRODUCTS) 652,412
78,400 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 386,517
126,850 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL
CONTRACTORS & OPERATIVE BUILDERS) 1,019,957
254,200 GKL PLC (TRANSPORTATION EQUIPMENT) 1,124,747
184,700 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,418,915
37,300 HBOS PLC (DEPOSITORY INSTITUTIONS) 505,916
354,100 J SAINSBURY PLC (FOOD & KINDRED PRODUCTS)+ 1,696,928
172,200 JJB SPORTS PLC (APPAREL & ACCESSORY STORES) 1,015,901
58,000 KELDA GROUP PLC (ELECTRIC, GAS & SANITARY SERVICES) 480,482
350,000 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 2,659,847
237,100 NORTHERN FOODS PLC (FOOD & KINDRED PRODUCTS) 701,569
676,500 OLD MUTUAL PLC (INSURANCE CARRIERS) 1,255,747
688,900 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,133,163
112,900 RMC GROUP PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,306,179
402,200 ROLLS ROYCE GROUP CLASS (TRANSPORTATION EQUIPMENT)+ 36,959
402,200 ROLLS ROYCE GROUP PLC (TRANSPORTATION EQUIPMENT) 1,663,174
231,200 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 1,617,860
45,800 SEVERN TRENT PLC (WATER TRANSPORTATION) 640,565
224,400 SHELL TRANSPORT & TRADING COMPANY PLC (OIL & GAS
EXTRACTION) 1,466,140
144,800 SINGER & FRIEDLANDER GROUP PLC (NON-DEPOSITORY CREDIT
INSTITUTIONS) 634,037
107
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (continued)
88,700 UNITED UTILITIES PLC (ELECTRIC, GAS & SANITARY
SERVICES) $ 846,066
68,700 WOLVERHAMPTON & DUDLEY BREWERIES PLC (FOOD & KINDRED
PRODUCTS) 1,063,750
39,471,905
------------
TOTAL COMMON STOCK (COST $134,235,543) 156,038,400
------------
COLLATERAL FOR SECURITIES LENDING - 4.90%
COLLATERAL FOR SECURITY LENDING 7,702,520
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $7,702,520) 7,702,520
------------
SHORT-TERM INVESTMENTS - 0.28%
MUTUAL FUND - 0.28%
431,711 WELLS FARGO MONEY MARKET TRUST~ 431,711
------------
TOTAL SHORT-TERM INVESTMENTS (COST $431,711) 431,711
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $142,369,774)* 104.40% $164,172,631
OTHER ASSETS AND LIABILITIES, NET (4.40) (6,914,626)
------ ------------
TOTAL NET ASSETS 100.00% $157,258,005
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
108
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.16%
AGRICULTURAL PRODUCTION CROPS - 0.20%
24,871 DELTA & PINE LAND COMPANY $ 620,531
----------
AMUSEMENT & RECREATION SERVICES - 0.56%
19,145 ARGOSY GAMING COMPANY+ 680,605
22,221 BALLY TOTAL FITNESS HOLDING CORPORATION+ 130,215
23,138 PINNACLE ENTERTAINMENT+ 319,304
19,506 WMS INDUSTRIES INCORPORATED+ 604,686
1,734,810
----------
APPAREL & ACCESSORY STORES - 2.28%
8,693 ASHWORTH INCORPORATED+ 75,629
29,112 BURLINGTON COAT FACTORY WAREHOUSE CORPORATION 576,418
13,390 CATO CORPORATION 268,871
17,448 CHILDRENS PLACE+ 540,365
24,689 CHRISTOPHER & BANKS CORPORATION 521,185
19,144 DRESS BARN INCORPORATED+ 335,786
21,432 GOODY'S FAMILY CLOTHING INCORPORATED 305,835
19,538 GYMBOREE CORPORATION+ 327,652
31,249 HOT TOPIC INCORPORATED+ 826,536
7,738 OSHKOSH B'GOSH INCORPORATED CLASS A 181,069
51,120 PACIFIC SUNWEAR OF CALIFORNIA INCORPORATED+ 1,254,485
22,434 TOO INCORPORATED+ 469,992
25,890 URBAN OUTFITTERS INCORPORATED+ 1,244,273
19,616 WET SEAL INCORPORATED CLASS A+ 161,832
7,089,928
----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR
MATERIALS - 0.75%
4,422 HAGGAR CORPORATION 88,440
17,457 KELLWOOD COMPANY 685,187
19,918 PHILLIPS-VAN HEUSEN CORPORATION 368,483
36,368 QUIKSILVER INCORPORATED+ 794,641
21,216 RUSSELL CORPORATION 387,404
2,324,155
----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.22%
23,674 CENTRAL PARKING CORPORATION 475,374
9,938 MIDAS INCORPORATED+ 193,294
668,668
----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS - 1.99%
21,231 MDC HOLDINGS INCORPORATED 1,494,634
4,255 NVR INCORPORATED+ 1,957,300
16,148 RYLAND GROUP INCORPORATED 1,434,427
21,440 STANDARD-PACIFIC CORPORATION 1,286,400
6,172,761
----------
109
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES - 7.33%
21,394 AARON RENTS INCORPORATED $ 532,497
31,697 ABM INDUSTRIES INCORPORATED 568,961
17,336 ADMINISTAFF INCORPORATED+ 302,166
19,705 ADVO INCORPORATED 634,895
27,692 AMERICAN MANAGEMENT SYSTEMS INCORPORATED+ 531,686
9,940 ANSYS INCORPORATED+ 395,016
20,143 ARBITRON INCORPORATED+ 810,957
12,309 BARRA INCORPORATED 430,692
15,338 BRADY CORPORATION CLASS A 584,071
8,132 BROOKTROUT INCORPORATED+ 161,339
19,020 CACI INTERNATIONAL INCORPORATED CLASS A+ 817,860
21,001 CAPTARIS INCORPORATED+ 115,505
15,592 CARREKER CORPORATION+ 123,489
23,138 CERNER CORPORATION+ 1,045,606
42,562 CIBER INCORPORATED+ 468,182
28,601 COGNEX CORPORATION 950,983
26,536 DENDRITE INTERNATIONAL INCORPORATED+ 424,576
30,759 EFUNDS CORPORATION+ 504,448
22,103 FACTSET RESEARCH SYSTEMS INCORPORATED 940,704
24,530 FILENET CORPORATION+ 653,724
14,501 GERBER SCIENTIFIC INCORPORATED+ 98,607
11,954 HEIDRICK & STRUGGLES INTERNATIONAL INCORPORATED+ 286,059
24,907 HYPERION SOLUTIONS CORPORATION+ 1,032,395
7,522 INSURANCE AUTO AUCTIONS INCORPORATED+ 109,295
11,119 INTRADO INCORPORATED+ 215,153
18,937 JDA SOFTWARE GROUP INCORPORATED+ 275,533
20,188 KRONOS INCORPORATED+ 656,716
26,897 LABOR READY INCORPORATED+ 363,647
19,562 MANHATTAN ASSOCIATES INCORPORATED+ 543,824
12,701 MAPINFO CORPORATION+ 162,065
6,750 MEMBERWORKS INCORPORATED+ 235,710
36,518 MIDWAY GAMES INCORPORATED+ 265,851
16,188 MRO SOFTWARE INCORPORATED+ 188,105
18,145 NCO GROUP INCORPORATED+ 424,049
23,319 NDCHEALTH CORPORATION 633,111
24,564 NETEGRITY INCORPORATED+ 208,794
15,663 NETWORK EQUIPMENT TECHNOLOGY INCORPORATED+ 156,317
16,453 ON ASSIGNMENT INCORPORATED+ 91,972
13,414 PC-TEL INCORPORATED+ 138,567
15,960 PHOENIX TECHNOLOGIES LIMITED+ 86,024
23,016 PROGRESS SOFTWARE CORPORATION+ 552,154
10,392 QRS CORPORATION+ 58,611
16,812 RADIANT SYSTEMS INCORPORATED+ 101,079
11,834 RADISYS CORPORATION+ 247,331
21,903 ROXIO INCORPORATED+ 97,906
25,640 SERENA SOFTWARE INCORPORATED+ 521,774
10,511 SOURCECORP INCORPORATED+ 278,541
110
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
BUSINESS SERVICES (continued)
39,293 SPHERION CORPORATION+ $ 401,967
11,356 SPSS INCORPORATED+ 207,815
9,334 STARTEK INCORPORATED 339,198
29,116 TAKE-TWO INTERACTIVE SOFTWARE INCORPORATED+ 1,070,886
8,909 TALX CORPORATION 195,553
24,858 THQ INCORPORATED+ 502,877
24,717 VERITY INCORPORATED+ 337,881
9,940 VOLT INFORMATION SCIENCE INCORPORATED+ 242,934
14,614 WEBSENSE INCORPORATED+ 432,720
22,758,378
-----------
CHEMICALS & ALLIED PRODUCTS - 4.23%
33,911 ALPHARMA INCORPORATED CLASS A 664,995
14,703 ARCH CHEMICALS INCORPORATED 415,066
18,340 ARQULE INCORPORATED+ 108,940
16,846 CAMBREX CORPORATION 453,157
9,485 CIMA LABS INCORPORATED+ 298,113
18,826 DIAGNOSTIC PRODUCTS CORPORATION 815,166
21,400 GEORGIA GULF CORPORATION 645,210
18,611 HB FULLER COMPANY 529,297
22,666 IDEXX LABORATORIES INCORPORATED+ 1,289,015
12,855 IMMUCOR INCORPORATED+ 232,933
19,779 MACDERMID INCORPORATED 696,023
36,325 MEDICIS PHARMACEUTICAL CORPORATION CLASS A 1,453,000
22,886 MGI PHARMA INCORPORATED+ 1,401,996
9,105 NATURES SUNSHINE PRODUCTS INCORPORATED 135,118
43,579 NBTY INCORPORATED+ 1,620,267
14,710 NOVEN PHARMACEUTICALS INCORPORATED+ 315,824
18,519 OM GROUP INCORPORATED+ 562,978
26,132 OMNOVA SOLUTIONS INCORPORATED+ 137,193
17,054 PAREXEL INTERNATIONAL CORPORATION+ 304,755
5,706 PENFORD CORPORATION 95,062
59,925 POLYONE CORPORATION+ 398,501
6,255 QUAKER CHEMICAL CORPORATION 158,877
11,412 SURMODICS INCORPORATED+ 227,213
20,828 WELLMAN INCORPORATED 173,914
13,132,613
-----------
COAL MINING - 0.35%
49,211 MASSEY ENERGY COMPANY 1,086,087
-----------
COMMUNICATIONS - 1.20%
23,669 ANIXTER INTERNATIONAL INCORPORATED+ 668,649
15,023 AUDIOVOX CORPORATION CLASS A+ 300,460
12,096 BOSTON COMMUNICATIONS GROUP INCORPORATED+ 143,338
36,794 GENERAL COMMUNICATION INCORPORATED CLASS A+ 334,825
24,615 GLOBAL PAYMENTS INCORPORATED 1,109,644
111
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMUNICATIONS (continued)
15,064 J2 GLOBAL COMMUNICATIONS INCORPORATED+ $ 339,844
27,912 WEBEX COMMUNICATIONS INCORPORATED+ 829,824
3,726,584
-----------
COMPUTERS-INTERGRATED SYSTEMS - 0.08%
20,976 AGILYSYS INCORPORATED 249,614
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.20%
9,820 EMCOR GROUP INCORPORATED+ 360,394
17,280 INSITUFORM TECHNOLOGIES INCORPORATED CLASS A+ 270,086
630,480
-----------
DEPOSITORY INSTITUTIONS - 7.82%
14,978 ANCHOR BANCORP WISCONSIN INCORPORATED 382,688
19,530 BANKUNITED FINANCIAL CORPORATION CLASS A+ 580,041
15,893 BOSTON PRIVATE FINANCIAL HOLDINGS INCORPORATED 445,004
38,417 BROOKLINE BANCORP INCORPORATED 612,751
23,984 CHITTENDEN CORPORATION 791,472
27,539 COMMERCIAL FEDERAL CORPORATION 760,076
25,085 DIME COMMUNITY BANCSHARES 510,480
18,241 DOWNEY FINANCIAL CORPORATION 964,949
15,864 EAST WEST BANCORP INCORPORATED 888,384
26,132 FIRST BANCORP PUERTO RICO 1,087,091
30,421 FIRST MIDWEST BANCORP INCORPORATED 1,038,573
9,497 FIRST REPUBLIC BANK 366,204
11,111 FIRSTFED FINANCIAL CORPORATION+ 512,550
39,485 FLAGSTAR BANCORP INCORPORATED 1,012,790
25,763 GOLD BANC CORP INCORPORATED 419,937
29,264 HUDSON UNITED BANCORP 1,113,495
18,322 IRWIN FINANCIAL CORPORATION 494,328
21,548 MAF BANCORP INCORPORATED 936,476
16,019 PROVIDENT BANKSHARES CORPORATION 502,676
41,492 REPUBLIC BANCORP INCORPORATED 583,378
18,694 RIGGS NATIONAL CORPORATION 321,724
16,811 SEACOAST FINANCIAL SERVICES CORPORATION 563,169
38,535 SOUTH FINANCIAL GROUP INCORPORATED 1,140,251
22,392 SOUTHWEST BANCORPORATION OF TEXAS INCORPORATED 844,850
38,381 STATEN ISLAND BANCORP INCORPORATED 954,919
29,000 STERLING BANCSHARES INCORPORATED TEXAS 388,310
26,014 SUSQUEHANNA BANCSHARES INCORPORATED 666,739
48,629 TRUSTCO BANK CORPORATION NY 654,546
29,412 UCBH HOLDINGS INCORPORATED 1,177,657
18,544 UMPQUA HOLDINGS CORPORATION 374,403
28,723 UNITED BANKSHARES INCORPORATED 876,052
21,988 WAYPOINT FINANCIAL CORPORATION 589,718
26,379 WHITNEY HOLDING CORPORATION 1,101,059
12,871 WINTRUST FINANCIAL CORPORATION 625,917
24,282,657
-----------
112
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DURABLE GOODS - CONSUMER - 0.08%
17,576 STURM RUGER & COMPANY INCORPORATED $ 237,452
-----------
EATING & DRINKING PLACES - 2.29%
25,287 CEC ENTERTAINMENT INCORPORATED+ 877,459
13,923 IHOP CORPORATION 479,508
23,699 JACK IN THE BOX INCORPORATED+ 591,764
17,989 LANDRY'S RESTAURANTS INCORPORATED 536,612
13,805 LONE STAR STEAKHOUSE & SALOON INCORPORATED 402,968
13,822 O'CHARLEY'S INCORPORATED+ 252,251
16,632 P.F. CHANG'S CHINA BISTRO INCORPORATED+ 836,756
11,744 PAPA JOHNS INTERNATIONAL INCORPORATED+ 397,417
21,985 RARE HOSPITALITY INTERNATIONAL INCORPORATED+ 610,084
27,614 RYAN'S FAMILY STEAK HOUSES INCORPORATED+ 472,476
25,737 SONIC CORPORATION+ 882,264
17,882 STEAK N SHAKE COMPANY+ 344,229
38,696 TRIARC COMPANIES INCORPORATED CLASS B 424,108
7,107,896
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.76%
9,929 AMERICAN STATES WATER COMPANY 242,268
33,864 ATMOS ENERGY CORPORATION 865,903
31,556 AVISTA CORPORATION 597,040
7,308 CASCADE NATURAL GAS CORPORATION 159,241
7,801 CENTRAL VERMONT PUBLIC SERVICE 175,523
10,294 CH ENERGY GROUP INCORPORATED 505,332
30,868 CLECO CORPORATION 587,418
31,454 EL PASO ELECTRIC COMPANY+ 435,323
23,607 ENERGEN CORPORATION 973,789
3,265 GREEN MOUNTAIN POWER CORPORATION 84,466
12,507 LACLEDE GROUP INCORPORATED 378,962
17,929 NEW JERSEY RESOURCES 677,716
16,889 NORTHWEST NATURAL GAS COMPANY 527,781
10,464 NUI CORPORATION 176,946
24,852 PIEDMONT NATURAL GAS COMPANY 1,049,251
47,736 SOUTHERN UNION COMPANY+ 904,597
22,230 SOUTHWEST GAS CORPORATION 520,182
32,922 UGI CORPORATION 1,083,792
9,447 UIL HOLDINGS CORPORATION 455,062
21,994 UNISOURCE ENERGY CORPORATION 540,393
18,600 WASTE CONNECTIONS INCORPORATED+ 740,280
11,681,265
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT - 7.46%
16,561 ACTEL CORPORATION+ 374,775
27,402 ACUITY BRANDS INCORPORATED 654,360
71,252 ADAPTEC INCORPORATED+ 624,168
21,285 ADVANCED ENERGY INDUSTRIES INCORPORATED+ 434,001
48,433 AEROFLEX INCORPORATED+ 651,908
113
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT (continued)
22,973 ALLIANCE SEMICONDUCTOR CORPORATION+ $ 174,825
19,126 AO SMITH CORPORATION 553,698
15,451 APPLICA INCORPORATED+ 173,669
25,297 ARTESYN TECHNOLOGIES INCORPORATED+ 240,827
20,225 ATMI INCORPORATED+ 532,322
21,415 BALDOR ELECTRIC COMPANY 492,117
7,276 BEL FUSE INCORPORATED CLASS B 238,216
26,562 BENCHMARK ELECTRONICS INCORPORATED+ 836,172
16,657 C&D TECHNOLOGIES INCORPORATED 278,338
27,612 C-COR.NET CORPORATION+ 387,120
27,422 CABLE DESIGN TECHNOLOGIES+ 259,961
8,436 CATAPULT COMMUNICATIONS CORPORATION+ 150,405
21,481 CHECKPOINT SYSTEMS INCORPORATED+ 405,991
11,739 CONCORD COMMUNICATIONS INCORPORATED+ 169,159
23,560 CTS CORPORATION 307,222
17,452 CUBIC CORPORATION 453,752
23,558 CYMER INCORPORATED+ 909,574
13,905 DIONEX CORPORATION+ 734,184
18,723 DSP GROUP INCORPORATED+ 481,743
11,884 DUPONT PHOTOMASKS INCORPORATED+ 276,422
18,259 ELECTRO SCIENTIFIC INDUSTRIES INCORPORATED+ 429,817
25,385 ESS TECHNOLOGY INCORPORATED+ 372,144
26,707 EXAR CORPORATION+ 494,079
45,608 HARMONIC INCORPORATED+ 440,117
17,049 HELIX TECHNOLOGY CORPORATION 413,438
17,003 HUTCHINSON TECHNOLOGY INCORPORATED+ 477,104
16,452 INTER-TEL INCORPORATED 494,547
18,596 MAGNETEK INCORPORATED+ 140,586
13,834 MERCURY COMPUTER SYSTEMS INCORPORATED+ 352,767
23,364 METHODE ELECTRONICS 301,396
38,621 MICORSEMI CORPORATION+ 528,335
16,979 MOOG INCORPORATED CLASS A+ 579,323
4,452 NATIONAL PRESTO INDUSTRIES INCORPORATED 172,560
12,921 PARK ELECTROCHEMICAL CORPORATION 326,901
16,471 PERICOM SEMICONDUCTOR+ 189,087
21,218 PHOTRONICS INCORPORATED+ 376,407
19,685 POWER INTEGRATIONS INCORPORATED+ 577,361
16,349 REGAL-BELOIT CORPORATION 326,653
10,568 ROGERS CORPORATION+ 564,014
7,326 SALTON INCORPORATED+ 68,645
9,884 SBS TECHNOLOGIES INCORPORATED+ 152,807
97,372 SKYWORKS SOLUTIONS INCORPORATED+ 1,135,358
11,750 STANDARD MICROSYSTEMS CORPORATION+ 313,020
8,385 SUPERTEX INCORPORATED+ 139,862
28,931 SYMMETRICOM INCORPORATED+ 259,511
26,307 TECHNITROL INCORPORATED+ 494,572
13,925 THREE-FIVE SYSTEMS INCORPORATED+ 91,209
8,872 TOLLGRADE COMMUNICATIONS INCORPORATED+ 141,597
114
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT (continued)
23,537 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ $ 988,554
17,216 VIASAT INCORPORATED+ 428,334
27,343 VICOR CORPORATION+ 335,499
18,252 ZIX CORPORATION+ 266,114
23,166,647
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT
& RELATED SERVICES - 2.15%
20,902 AMERICAN HEALTHCORP+ 510,427
12,772 CDI CORPORATION 412,280
27,295 KROLL INCORPORATED+ 732,871
14,296 MAXMUS INCORPORATED+ 500,360
36,691 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED+ 1,093,025
40,223 PRG-SCHULTZ INTERNATIONAL INCORPORATED+ 176,981
36,120 REGENERON PHARMACEUTICAL INCORPORATED+ 490,510
35,688 TETRA TECH INCORPORATED+ 765,864
21,953 URS CORPORATION+ 631,807
54,981 US ONCOLOGY INCORPORATED+ 812,619
21,487 WATSON WYATT & COMPANY HOLDINGS+ 542,332
6,669,076
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY
& TRANSPORTATION EQUIPMENT - 1.88%
25,282 ALLIANT TECHSYSTEMS INCORPORATED+ 1,375,341
23,805 APTARGROUP INCORPORATED 914,112
4,133 BUTLER MANUFACTURING COMPANY+ 92,786
18,611 COMMERCIAL METALS COMPANY 592,574
19,800 ESCROW MASOTECH INCORPORATED+ 0
19,317 GRIFFON CORPORATION+ 417,247
9,316 MATERIAL SCIENCES CORPORATION+ 102,476
9,371 MOBILE MINI INCORPORATED+ 162,118
39,704 SHAW GROUP INCORPORATED+ 430,391
15,851 SIMPSON MANUFACTURING COMPANY INCORPORATED 775,906
36,775 TOWER AUTOMOTIVE INCORPORATED 185,346
15,525 VALMONT INDUSTRIES INCORPORATED 310,190
20,681 WATTS WATER TECHNOLOGIES INCORPORATED 483,729
5,842,216
-----------
FINANCE COMPANIES - 0.05%
15,784 REWARDS NETWORK INCORPORATED+ 157,840
-----------
FOOD & KINDRED PRODUCTS - 1.07%
11,751 AMERICAN ITALIAN PASTA COMPANY CLASS A 469,217
23,578 CORN PRODUCTS INTERNATIONAL INCORPORATED 943,120
29,503 FLOWERS FOODS INCORPORATED 774,159
5,748 J & J SNACK FOODS CORPORATION+ 259,695
19,043 LANCE INCORPORATED 312,115
18,996 RALCORP HOLDINGS INCORPORATED+ 578,048
3,336,354
-----------
115
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD STORES - 0.31%
25,157 GREAT ATLANTIC & PACIFIC TEA COMPANY INCORPORATED+ $ 194,715
19,668 PANERA BREAD COMPANY+ 765,479
960,194
----------
FURNITURE & FIXTURES - 0.81%
7,604 BASSETT FURNITURE INDUSTRIES INCORPORATED 150,787
24,353 ETHAN ALLEN INTERIORS INCORPORATED 1,004,805
34,344 LA-Z-BOY INCORPORATED 747,325
21,974 SELECT COMFORT CORPORATION+ 606,263
2,509,180
----------
GENERAL MERCHANDISE STORES - 0.59%
32,569 CASEY'S GENERAL STORES 540,645
25,532 FRED'S INCORPORATED 619,662
19,082 SHOPKO STORES INCORPORATED+ 278,979
27,255 STEIN MART INCORPORATED+ 376,119
1,815,405
----------
HEALTH SERVICES - 2.88%
31,465 ACCREDO HEALTH INCORPORATED+ 1,198,816
19,646 AMSURG CORPORATION+ 446,149
20,849 CROSS COUNTRY HEALTHCARE INCORPORATED+ 347,136
15,170 CRYOLIFE INCORPORATED+ 90,262
8,379 CURATIVE HEALTH SERVICES INCORPORATED+ 112,279
19,617 ENZO BIOCHEM INCORPORATED+ 330,154
42,317 HOOPER HOLMES INCORPORATED 264,058
21,293 NAUTILUS GROUP INCORPORATED 335,365
23,702 ODYSSEY HEALTHCARE INCORPORATED+ 446,783
32,745 ORTHODONTIC CENTERS OF AMERICA INCORPORATED+ 258,686
15,361 PEDIATRIX MEDICAL GROUP INCORPORATED+ 967,743
31,827 PROVINCE HEALTHCARE COMPANY+ 506,049
10,528 REHABCARE GROUP INCORPORATED+ 209,297
29,674 RENAL CARE GROUP INCORPORATED+ 1,357,882
6,454 ROTO-ROOTER INCORPORATED 326,250
18,071 SIERRA HEALTH SERVICES INCORPORATED+ 657,784
13,218 SUNRISE SENIOR LIVING INCORPORATED+ 473,865
17,910 UNITED SURGICAL PARTNERS INTERNATIONAL INCORPORATED+ 607,865
8,936,423
----------
HOLDING & OTHER INVESTMENT OFFICES - 2.46%
8,764 4KIDS ENTERTAINMENT INCORPORATED+ 196,051
22,981 CAPITAL AUTOMOTIVE 811,459
17,109 COLONIAL PROPERTIES TRUST 698,047
32,658 COMMERCIAL NET LEASE REALTY INCORPORATED 644,996
24,513 COMMUNITY FIRST BANKSHARES INCORPORATED 787,848
14,884 ESSEX PROPERTY TRUST INCORPORATED 974,902
18,609 GABLES RESIDENTIAL TRUST 674,576
20,424 GLENBOROUGH REALTY TRUST INCORPORATED 456,476
116
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HOLDING & OTHER INVESTMENT OFFICES (continued)
21,685 HEADWATERS INCORPORATED+ $ 555,570
18,320 KILROY REALTY CORPORATION 650,360
29,808 SHURGARD STORAGE CENTERS INCORPORATED 1,189,339
7,639,624
----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.16%
17,348 BELL MICROPRODUCTS INCORPORATED+ 124,906
14,247 COST PLUS INCORPORATED+ 594,812
16,218 ELECTRONICS BOUTIQUE HOLDINGS CORPORATION+ 476,160
15,553 GUITAR CENTER INCORPORATED+ 577,638
14,488 HAVERTY FURNITURE COMPANIES INCORPORATED 308,305
29,238 LINENS `N THINGS INCORPORATED+ 1,035,318
21,334 MOVIE GALLERY INCORPORATED 417,933
9,630 ULTIMATE ELECTRONICS INCORPORATED+ 62,884
3,597,956
----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.39%
22,383 AZTAR CORPORATION+ 548,607
19,402 MARCUS CORPORATION 336,625
29,212 PRIME HOSPITALITY CORPORATION+ 332,433
1,217,665
----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.59%
12,888 ASTEC INDUSTRIES INCORPORATED+ 207,626
64,624 AXCELIS TECHNOLOGIES INCORPORATED+ 718,619
11,770 BLACK BOX CORPORATION 630,754
14,589 BRIGGS & STRATTON CORPORATION 984,320
29,028 BROOKS AUTOMATION INCORPORATED+ 609,008
11,294 DRIL-QUIP INCORPORATED+ 185,673
16,892 ENGINEERED SUPPORT SYSTEMS INCORPORATED 824,161
19,866 FEDDERS CORPORATION 113,435
12,474 GARDNER DENVER INCORPORATED+ 337,796
14,325 GLOBAL IMAGING SYSTEMS INCORPORATED+ 475,877
14,896 HYDRIL COMPANY+ 390,275
21,491 IDEX CORPORATION 934,429
18,430 KAYDON CORPORATION 507,378
33,081 KULICKE & SOFFA INDUSTRIES INCORPORATED+ 387,709
38,418 LENNOX INTERNATIONAL INCORPORATED 712,654
7,678 LINDSAY MANUFACTURING COMPANY 184,886
17,354 MANITOWOC COMPANY INCORPORATED 513,331
11,996 MICROS SYSTEMS INCORPORATED+ 541,619
22,742 MILACRON INCORPORATED+ 78,915
20,758 NYFIX INCORPORATED+ 107,111
25,551 PAXAR CORPORATION+ 376,877
9,527 PLANAR SYSTEMS INCORPORATED+ 135,569
9,437 ROBBINS & MYERS INCORPORATED 203,367
9,976 SCM MICROSYSTEMS INCORPORATED+ 66,939
11,274 THOMAS INDUSTRIES INCORPORATED 355,131
117
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
58,363 TIMKEN COMPANY $ 1,355,773
15,929 TORO COMPANY 987,598
15,314 ULTRATECH INCORPORATED+ 356,969
17,015 WATSCO INCORPORATED 493,435
7,280 WOODWARD GOVERNOR COMPANY 464,027
14,241,261
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.29%
23,481 HILB, ROGAL & HAMILTON COMPANY 894,626
-----------
INSURANCE CARRIERS - 2.62%
15,899 AMERIGROUP CORPORATION+ 726,584
13,171 CENTENE CORPORATION+ 402,901
20,210 DELPHI FINANCIAL GROUP INCORPORATED CLASS A 849,224
49,597 FREMONT GENERAL CORPORATION 1,517,668
12,163 LANDAMERICA FINANACIAL GROUP INCORPORATED 550,497
14,358 PHILADELPHIA CONSOLIDATED HOLDING CORPORATION+ 832,764
19,159 PRESIDENTIAL LIFE CORPORATION 287,002
16,444 RLI CORPORATION 634,738
6,443 SCPIE HOLDINGS INCORPORATED 52,833
17,832 SELECTIVE INSURANCE GROUP INCORPORATED 625,368
30,387 STEWART INFORMATION SERVICES CORPORATION 732,990
30,249 UNITIED INSURANCE COMPANIES INCORPORATED+ 446,475
12,289 ZENITH NATIONAL INSURANCE CORPORATION 481,729
8,140,773
-----------
LEATHER & LEATHER PRODUCTS - 0.43%
11,752 BROWN SHOE COMPANY INCORPORATED 428,125
14,181 GENESCO INCORPORATED+ 328,716
23,153 K-SWISS INCORPORATED 566,554
1,323,395
-----------
LEGAL SERVICES - 0.09%
11,309 PRE-PAID LEGAL SERVICES INCORPORATED+ 276,844
-----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 0.48%
45,462 CHAMPION ENTERPRISES INCORPORATED+ 481,897
10,146 COACHMEN INDUSTRIES INCORPORATED 169,235
7,816 DELTIC TIMBER CORPORATION 277,312
5,480 SKYLINE CORPORATION 211,364
11,618 UNIVERSAL FOREST PRODUCTS 358,531
1,498,339
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 8.75%
19,205 ADVANCED MEDICAL OPTICS INCORPORATED+ 468,602
21,599 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ 572,373
8,828 ANALOGIC CORPORATION 401,586
18,402 ARMOR HOLDINGS INCORPORATED+ 609,106
118
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (continued)
13,527 ARTHROCARE CORPORATION+ $ 312,609
9,626 BEI TECHNOLOGIES INCORPORATED 216,200
10,167 BIOSITE INCORPORATED+ 325,039
19,643 COHERENT INCORPORATED+ 516,414
13,995 COHU INCORPORATED 261,007
18,580 CONCORD CAMERA CORPORATION+ 116,682
18,973 CONMED CORPORATION+ 560,462
20,954 COOPER COMPANIES INCORPORATED 1,131,516
11,050 CUNO INCORPORATED+ 495,924
9,658 DATASCOPE CORPORATION 339,382
17,606 DRS TECHNOLOGIES INCORPORATED+ 492,616
12,892 EDO CORPORATION 310,439
13,757 ESTERLINE TECHNOLOGIES CORPORATION+ 341,861
21,643 FEI COMPANY+ 472,900
21,637 FLIR SYSTEMS INCORPORATED+ 824,802
30,396 FOSSIL INCORPORATED+ 1,013,707
16,260 HAEMONETICS CORPORATION MASSACHUSETTS+ 511,377
13,183 HOLOGIC INCORPORATED+ 266,956
8,915 ICU MEDICAL INCORPORATED+ 270,749
22,887 INAMED CORPORATION+ 1,219,419
33,470 INPUT OUTPUT INCORPORATED+ 259,392
17,732 INTEGRA LIFESCIENCES HOLDINGS+ 542,954
10,919 INTERMAGNETICS GENERAL CORPORATION+ 289,353
20,269 INVACARE CORPORATION 914,943
11,050 INVISION TECHNOLOGIES INCORPORATED+ 548,854
14,744 IONICS INCORPORATED+ 418,730
13,424 ITRON INCORPORATED+ 249,821
10,420 KEITHLEY INSTRUMENTS INCORPORATED 215,798
45,757 KOPIN CORPORATION+ 264,475
13,053 MEADE INSTRUMENTS CORPORATION+ 52,734
28,593 MENTOR CORPORATION 860,649
16,817 MERIT MEDICAL SYSTEMS INCORPORATED+ 363,920
11,169 OSTEOTECH INCORPORATED+ 72,040
10,784 PHOTON DYNAMICS INCORPORATED+ 351,882
44,369 PINNACLE SYSTEMS INCORPORATED+ 400,652
17,152 POLYMEDICA CORPORATION 460,017
11,608 POSSIS MEDICAL INCORPORATED+ 326,533
21,950 RESMED INCORPORATED+ 991,921
22,458 RESPIRONICS INCORPORATED+ 1,213,181
23,523 ROPER INDUSTRIES INCORPORATED 1,134,985
10,742 RUDOLPH TECHNOLOGIES INCORPORATED+ 201,198
20,877 SOLA INTERNATIONAL INCORPORATED+ 485,390
25,089 SYBRON DENTAL SPECIALTIES INCORPORATED+ 683,675
26,830 TECHNE CORPORATION+ 1,094,932
21,195 TELEDYNE TECHNOLOGIES INCORPORATED+ 396,347
19,553 THERAGENICS CORPORATION+ 105,195
32,380 TRIMBLE NAVIGATION LIMITED+ 742,473
19,131 VEECO INSTRUMENTS INCORPORATED+ 536,625
119
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (continued)
19,746 VIASYS HEALTHCARE INCORPORATED+ $ 446,655
8,442 VITAL SIGNS INCORPORATED 284,749
13,420 X-RITE INCORPORATED 199,824
27,161,625
-----------
MEDICAL EQUIPMENT & SUPPLIES - 0.16%
13,832 WILSON GREATBATCH TECHNOLOGIES INCORPORATED+ 501,825
-----------
MEMBERSHIP ORGANIZATIONS - 0.13%
14,241 JO ANN STORES INCORPORATED+ 399,460
-----------
METAL MINING - 0.14%
6,858 CLEVELAND CLIFFS INCORPORATED+ 448,719
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS -
0.38%
28,152 FLORIDA ROCK INDUSTRIES INCORPORATED 1,186,607
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.72%
9,808 AT CROSS COMPANY CLASS A+ 63,948
12,283 DAKTRONICS INCORPORATED+ 277,227
16,373 JAKKS PACIFIC INCORPORATED+ 245,595
21,675 K2 INCORPORATED+ 347,450
10,614 LYDALL INCORPORATED+ 108,263
13,488 RUSS BERRIE AND COMPANY INCORPORATED 472,080
10,761 SHUFFLE MASTER INCORPORATED+ 500,279
7,984 STANDEX INTERNATIONAL CORPORATION 215,568
2,230,410
-----------
MISCELLANEOUS RETAIL - 0.77%
11,967 ACTION PERFORMANCE COMPANIES INCORPORATED 182,736
18,468 CASH AMERICA INTERNATIONAL INCORPORATED 425,687
15,943 DUANE READE INCORPORATED+ 270,075
12,273 HANCOCK FABRICS INCORPORATED DELEWARE 195,018
13,002 J JILL GROUP INCORPORATED+ 266,801
16,991 ZALE CORPORATION+ 1,045,796
2,386,113
-----------
MOTION PICTURES - 0.30%
20,068 AVID TECHNOLOGY INCORPORATED+ 925,737
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.32%
16,303 ARKANSAS BEST CORPORATION 436,757
14,002 FORWARD AIR CORPORATION+ 460,246
32,657 HEARTLAND EXPRESS INCORPORATED 743,926
19,387 LANDSTAR SYSTEM INCORPORATED+ 793,704
17,912 USF CORPORATION 612,949
31,089 YELLOW ROADWAY CORPORATION+ 1,046,767
4,094,349
-----------
120
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.49%
12,177 FINANCIAL FEDERAL CORPORATION+ $ 407,077
23,003 NEW CENTURY FINANCIAL CORPORATION 1,117,026
1,524,103
-----------
NON-DURABLE GOODS - CONSUMER - 0.09%
25,694 STRIDE RITE CORPORATION 272,613
-----------
OIL & GAS EXTRACTION - 4.38%
9,047 ATWOOD OCEANICS INCORPORATED+ 321,983
21,222 CABOT OIL AND GAS CORPORATION 648,544
24,645 CAL DIVE INTERNATIONAL INCORPORATED+ 636,580
27,195 CIMAREX ENERGY COMPANY+ 785,936
28,098 EVERGREEN RESOURCES INCORPORATED+ 965,166
12,748 NUEVO ENERGY COMPANY+ 415,075
15,872 OCEANEERING INTERNATIONAL INCORPORATED+ 483,302
44,571 PATINA OIL & GAS CORPORATION 1,169,989
15,414 PLAINS RESOURCES INCORPORATED+ 280,227
8,432 PRIMA ENERGY CORPORATION+ 291,326
17,558 REMINGTON OIL & GAS CORPORATION+ 346,771
12,207 SEACOR SMIT INCORPORATED+ 501,464
23,485 SOUTHWESTERN ENERGY COMPANY+ 566,458
21,732 SPINNAKER EXPLORATION COMPANY+ 780,613
18,510 ST MARY LAND & EXPLORATION COMPANY 618,789
17,237 STONE ENERGY CORPORATION+ 852,542
17,924 SWIFT ENERGY COMPANY+ 337,867
14,306 TETRA TECH INCORPORATED+ 373,816
29,780 TOM BROWN INCORPORATED+ 1,119,728
28,460 UNIT CORPORATION+ 780,373
22,028 VERITAS DGC INCORPORATED+ 455,980
41,976 VINTAGE PETROLEUM INCORPORATED 615,368
17,822 W-H ENERGY SERVICES INCORPORATED+ 257,884
13,605,781
-----------
PAPER & ALLIED PRODUCTS - 0.76%
24,209 BUCKEYE TECHNOLOGIES INCORPORATED 250,805
18,384 CARAUSTAR INDUSTRIES INCORPORATED+ 214,174
12,469 CHESAPEAKE CORPORATION 297,635
10,216 POPE & TALBOT INCORPORATED 175,613
22,934 ROCK-TENN COMPANY CLASS A 330,708
9,646 SCHWEITZER MANDUIT INTERNATIONAL INCORPORATED 311,566
18,592 STANDARD REGISTER COMPANY 298,030
33,672 WAUSAU-MOSINEE PAPER CORPORATION 474,438
2,352,969
-----------
PERSONAL SERVICES - 0.31%
5,777 ANGELICA CORPORATION 131,889
13,865 COINSTAR INCORPORATED+ 220,037
121
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PERSONAL SERVICES (continued)
5,263 CPI CORPORATION $ 100,155
13,617 G & K SERVICES INCORPORATED CLASS A 506,825
958,906
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.34%
12,823 ELKCORP 347,375
17,088 FRONTIER OIL CORPORATION 331,166
11,102 WD-40 COMPANY 388,570
1,067,111
-----------
PHARMACEUTICALS - 0.05%
38,891 SAVIENT PHARMACEUTICALS INCORPORATED+ 147,008
-----------
PRIMARY METAL INDUSTRIES - 2.09%
16,840 BELDEN INCORPORATED 319,455
10,915 BRUSH ENGINEERED MATERIALS INCORPORATED+ 221,247
14,661 CARPENTER TECHNOLOGY CORPORATION 482,054
13,847 CENTURY ALUMINUM COMPANY+ 390,901
10,457 COMMONWEALTH INDUSTRIES+ 76,441
13,527 CURTISS-WRIGHT CORPORATION 634,011
10,058 IMCO RECYCLING INCORPORATED+ 94,746
18,702 LONE STAR TECHNOLOGIES INCORPORATED+ 330,464
27,404 MAVERICK TUBE CORPORATION+ 645,364
22,806 MUELLER INDUSTRIES INCORPORATED 775,176
10,596 QUANEX CORPORATION 450,224
13,610 RTI INTERNATIONAL METALS INCORPORATED+ 215,446
31,420 STEEL DYNAMICS INCORPORATED+ 778,588
8,037 STEEL TECHNOLOGIES INCORPORATED 155,275
13,783 TEXAS INDUSTRIES INCORPORATED 498,255
24,986 TREDEGAR CORPORATION 365,545
8,019 WOLVERINE TUBE INCORPORATED+ 67,279
6,500,471
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.68%
22,146 BOWNE & COMPANY INCORPORATED 378,697
8,812 CONSOLIDATED GRAPHICS INCORPORATED+ 338,821
13,634 INFORMATION HOLDINGS INCORPORATED+ 281,133
18,096 JOHN H HARLAND COMPANY 563,148
8,685 NEW ENGLAND BUSINESS SERVICE INCORPORATED 293,987
9,429 THOMAS NELSON INCORPORATED 256,657
2,112,443
-----------
RAILROAD TRANSPORTATION - 0.18%
40,543 KANSAS CITY SOUTHERN+ 563,548
-----------
REAL ESTATE - 0.21%
8,568 MERITAGE CORPORATION+ 636,174
-----------
REAL ESTATE INVESTMENT TRUST (REIT) - 0.22%
30,823 LEXINGTON CORPORATE PROPERTIES TRUST 671,633
-----------
122
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.12%
19,650 A SCHULMAN INCORPORATED $ 386,123
----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.43%
30,521 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 466,971
12,586 PIPER JAFFRAY COMPANIES INCORPORATED+ 681,532
11,198 SWS GROUP INCORPORATED 200,556
1,349,059
----------
SOFTWARE - 0.06%
11,610 EPIQ SYSTEMS INCORPORATED+ 190,172
----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.36%
17,978 APOGEE ENTERPRISES INCORPORATED 221,669
10,371 CARBO CERAMICS INCORPORATED 652,854
8,878 LIBBEY INCORPORATED 230,207
1,104,730
----------
TELEPHONE SERVICES - 0.21%
15,653 COMMONWEALTH TELEPHONE ENTERPRISES INCORPORATED+ 641,930
----------
TEXTILE MILL PRODUCTS - 0.63%
21,749 ALBANY INTERNATIONAL CORPORATION CLASS A 584,831
33,537 INTERFACE INCORPORATED+ 266,619
10,575 OXFORD INDUSTRIES INCORPORATED 488,459
25,739 WOLVERINE WORLD WIDE INCORPORATED 621,082
1,960,991
----------
TRANSPORTATION BY AIR - 0.73%
29,608 ATLANTIC COAST AIRLINES+ 215,250
30,924 EGL INCORPORATED+ 555,395
23,204 FRONTIER AIRLINES INCORPORATED+ 241,786
20,734 MESA AIR GROUP INCORPORATED+ 171,263
14,751 OFFSHORE LOGISTICS INCORPORATED+ 340,011
37,785 SKYWEST INCORPORATED 726,983
2,250,688
----------
TRANSPORTATION EQUIPMENT - 2.85%
20,930 AAR CORPORATION+ 257,020
13,729 ARCTIC CAT INCORPORATED 349,952
16,530 CLARCOR INCORPORATED 729,799
25,271 FLEETWOOD ENTERPRISES INCORPORATED+ 310,328
28,891 GENCORP INCORPORATED 312,890
14,816 GROUP 1 AUTOMOTIVE INCORPORATED+ 536,339
10,560 HUFFY CORPORATION+ 41,184
16,721 INTERMET CORPORATION 75,244
28,356 JLG INDUSTRIES INCORPORATED 405,491
19,002 MONACO COACH CORPORATION 509,254
22,893 OSHKOSH TRUCK CORPORATION 1,275,140
28,449 POLARIS INDUSTRIES INCORPORATED 1,292,723
12,884 STANDARD MOTOR PRODUCTS INCORPORATED 202,021
123
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION EQUIPMENT (continued)
37,387 THOR INDUSTRIES INCORPORATED $1,004,215
10,356 TRIUMPH GROUP INCORPORATED+ 342,266
21,742 WABASH NATIONAL CORPORATION+ 513,111
22,131 WINNEBAGO INDUSTRIES INCORPORATED 689,823
8,846,800
----------
TRANSPORTATION SERVICES - 0.06%
16,338 PEGASUS SOLUTIONS INCORPORATED+ 190,828
----------
US GOVERNMENT - 0.14%
20,935 MANTECH INTERNATIONAL CORPORATION CLASS A+ 428,958
----------
WATER TRANSPORTATION - 0.17%
15,841 KIRBY CORPORATION+ 535,267
----------
WHOLESALE TRADE NON-DURABLE GOODS - 2.22%
12,445 ADVANCED MARKETING SERVICES INCORPORATED 123,205
29,469 DIMON INCORPORATED 209,230
9,071 ENESCO GROUP INCORPORATED+ 104,316
23,101 HAIN CELESTIAL GROUP INCORPORATED+ 510,301
12,616 INTERNATIONAL MULTIFOODS CORPORATION 311,868
24,251 MEN'S WEARHOUSE INCORPORATED+ 644,349
19,690 MYERS INDUSTRIES INCORPORATED 242,187
7,903 NASH FINCH COMPANY 187,143
29,929 PERFORMANCE FOOD GROUP COMPANY+ 1,028,061
28,375 PRIORITY HEALTHCARE CORPORATION CLASS B+ 604,104
12,316 SCHOOL SPECIALTY INCORPORATED+ 438,080
24,360 TRACTOR SUPPLY COMPANY+ 943,219
12,767 UNITED NATURAL FOODS INCORPORATED+ 613,965
22,056 UNITED STATIONERS INCORPORATED+ 928,558
6,888,586
----------
WHOLESALE TRADE-DURABLE GOODS - 2.66%
10,319 AM CASTLE & COMPANY+ 93,284
12,665 APPLIED INDUSTRIAL TECHNOLOGIES INCORPORATED 287,749
15,005 BARNES GROUP INCORPORATED 418,489
8,702 BUILDING MATERIALS HOLDINGS CORPORATION 152,720
8,596 DEPARTMENT 56 INCORPORATED+ 127,049
13,635 DIGI INTERNATIONAL INCORPORATED+ 134,577
19,540 HUGHES SUPPLY INCORPORATED 1,023,896
10,955 IMAGISTICS INTERNATIONAL INCORPORATED+ 482,568
30,414 INSIGHT ENTERPRISES INCORPORATED+ 585,469
14,767 KAMAN CORPORATION CLASS A 220,471
24,501 KNIGHT TRANSPORTATION INCORPORATED+ 587,534
6,201 LAWSON PRODUCTS INCORPORATED 202,215
25,573 OWENS & MINOR INCORPORATED 646,997
38,649 PEP BOYS-MANNY, MOE & JACK 1,072,516
20,925 RELIANCE STEEL & ALUMINUM COMPANY 735,514
16,235 RYERSON TULL INCORPORATED 212,516
124
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE-DURABLE GOODS (continued)
23,189 SCP POOL CORPORATION+ $864,022
14,243 TBC CORPORATION+ 418,317
8,265,903
------------
TOTAL COMMON STOCK (COST $242,901,870) 298,515,337
------------
COLLATERAL FOR SECURITIES LENDING - 26.38%
COLLATERAL FOR SECURITY LENDING 81,879,447
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $81,879,447) 81,879,447
------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
CORPORATE BONDS & NOTES - 0.00%
WHOLESALE TRADE-DURABLE GOODS - 0.00%
1,632 TIMCO AVIATION
SERVICES
INCORPORATED&(A) 0.00% 8,161
------------
TOTAL CORPORATE BONDS & NOTES (COST $53) 8,161
============
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.40%
MUTUAL FUND - 3.14%
9,730,045 WELLS FARGO MONEY MARKET TRUST~ 9,730,045
------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
US TREASURY BILLS - 0.26%
$ 40,000 US TREASURY BILL#^ 0.90% 5/13/04 39,956
75,000 US TREASURY BILL#^ 0.93 5/13/04 74,918
15,000 US TREASURY BILL#^ 0.94 5/13/04 14,983
680,000 US TREASURY BILL#^ 0.95 5/13/04 679,253
15,000 US TREASURY BILL#^ 0.92 5/13/04 14,983
824,093
------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,554,138) 10,554,138
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $335,335,508)* 125.94% $390,957,083
OTHER ASSETS AND LIABILITIES, NET (25.94) (80,529,527)
------ ------------
TOTAL NET ASSETS 100.00% $310,427,556
====== ============
+ NON-INCOME EARNING 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.
& PAYMENT-IN-KIND (PIK) SECURITIES ARE SECURITIES IN WHICH THE ISSUER MAY
MAKE INTEREST OR DIVIDEND PAYMENTS IN CASH OR ADDITIONAL SECURITIES. THESE
ADDITIONAL SECURITIES GENERALLY HAVE THE SAME TERMS AS THE ORIGINAL
HOLDINGS.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS (SEE NOTE 2)
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
125
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 97.11%
AGRICULTURAL SERVICES - 1.01%
236,900 VCA ANTECH INCORPORATED+ $ 8,440,747
------------
AMUSEMENT & RECREATION SERVICES - 0.95%
256,600 GAYLORD ENTERTAINMENT COMPANY+ 7,928,940
------------
APPAREL & ACCESSORY STORES - 2.02%
422,200 GYMBOREE CORPORATION+ 7,080,294
251,100 STAGE STORES INCORPORATED+ 9,715,059
16,795,353
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS - 3.43%
369,800 POLO RALPH LAUREN CORPORATION 12,676,744
481,200 QUIKSILVER INCORPORATED+ 10,514,220
955,100 SCANSOFT INC+ 5,339,009
28,529,973
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.37%
628,200 CSK AUTO CORPORATION+ 11,376,702
------------
BUSINESS SERVICES - 16.73%
457,000 ANSWERTHINK CONSULTING GROUP INCORPORATED+ 3,528,040
1,050,300 BORELAND SOFTWARE CORPORATION+ 9,536,724
486,500 BRINK'S COMPANY 13,417,670
1,048,200 CNET NETWORKS INCORPORATED+ 10,827,906
475,700 DOUBLECLICK INCORPORATED+ 5,351,625
403,500 ELECTRONICS FOR IMAGING INCORPORATED+ 9,913,995
236,000 HYPERION SOLUTIONS CORPORATION+ 9,782,200
338,600 INTEGRATED ALARM SERVICES+ 3,220,086
377,600 MACROMEDIA INCORPORATED+ 7,578,432
268,800 MAPINFO CORPORATION+ 3,429,888
516,200 MPS GROUP INCORPORATED+ 5,740,144
566,000 NETIQ CORPORATION+ 7,901,360
728,800 OPSWARE INCORPORATED+ 5,509,728
390,500 PROGRESS SOFTWARE CORPORATION+ 9,368,095
274,600 RED HAT INCORPORATED+ 6,277,356
341,000 SERENA SOFTWARE INCORPORATED+ 6,939,350
368,600 SOTHEBY'S HOLDINGS INCORPORATED+ 4,736,510
267,800 STELLENT INCORPORATED+ 2,000,466
354,300 THQ INCORPORATED+ 7,167,489
851,500 TIBCO SOFTWARE INCORPORATED+ 6,956,755
139,183,819
------------
CHEMICALS & ALLIED PRODUCTS - 10.69%
428,500 APHTON CORPORATION+ 2,013,950
493,600 BIOMARIN PHARMACEUTICAL INCORPORATED+ 3,711,872
427,500 CELL THERAPEUTICS INCORPORATED+ 3,616,650
289,000 DENDREON CORPORATION+ 3,843,700
194,400 DIGENE CORPORATION+ 6,679,584
126
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
CHEMICALS & ALLIED PRODUCTS (continued)
575,500 INDEVUS PHARMACEUTICALS INCORPORATED+ $ 3,481,775
431,700 IVAX CORPORATION+ 9,829,809
275,200 NBTY INCORPORATED+ 10,231,936
320,000 NEKTAR THERAPEUTICS+ 6,905,600
184,000 NEUROCRINE BIOSCIENCES INCORPORATED+ 10,874,400
367,300 NOVA CHEMICALS CORPORATION 9,215,557
253,700 NOVEN PHARMACEUTICALS INCORPORATED+ 5,446,939
214,500 UNITED THERAPEUTICS CORPORATION+ 5,111,535
210,900 VALEANT PHARMACEUTICALS INTERNATIONAL 5,034,183
188,000 ZYMOGENETICS INCORPORATED+ 2,904,600
88,902,090
-----------
COMMUNICATIONS - 1.05%
366,400 LIN TV CORPORATION CLASS A+ 8,723,984
-----------
DEPOSITORY INSTITUTIONS - 1.07%
279,600 ORIENTAL FINANCIAL GROUP INCORPORATED 8,905,260
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT - 9.60%
550,900 ARRIS GROUP INC.+ 5,068,280
297,700 ARTISAN COMPONENTS INCORPORATED+ 6,635,733
862,000 CHIPPAC INCORPORATED+ 6,818,420
131,700 DSP GROUP INCORPORATED+ 3,388,641
261,300 INTEGRATED CIRCUIT SYSTEMS INCORPORATED+ 6,540,339
514,600 INTEGRATED SILICON SOLUTION INCORPORATED+ 9,129,004
984,300 MEMC ELECTRONIC MATERIALS INCORPORATED+ 9,006,345
249,100 NOVELLUS SYSTEMS INCORPORATED+ 7,918,889
703,100 POWER-ONE INCORPORATED+ 7,776,286
472,700 SILCON STORAGE TECHNOLOGY INCORPORATED+ 6,116,738
308,100 TEKELEC+ 5,111,379
151,400 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 6,358,800
79,868,854
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 7.31%
206,500 AMYLIN PHARMACEUTICALS INCORPORATED+ 4,891,985
233,600 ATRIX LABORATORIES INCORPORATED+ 5,956,800
643,400 BEARINGPOINT INCORPORATED+ 6,897,248
209,000 CEPHALON INCORPORATED+ 11,977,790
441,700 CORE LABORATORIES N.V.+ 9,364,040
273,800 DIGITAS INCORPORATED+ 2,817,402
171,000 NEUROCHEM INCORPORATED+ 3,657,690
291,200 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED+ 8,674,848
777,364 UNITEDGLOBALCOM INCORPORATED+ 6,599,820
60,837,623
-----------
FOOD STORES - 0.60%
420,400 WILD OATS MARKETS INCORPORATED+ 4,973,332
-----------
127
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HEALTH SERVICES - 3.95%
322,600 COMMUNITY HEALTH SYSTEMS+ $ 8,977,958
541,300 ENZON PHARMACEUTICALS INCORPORATED+ 8,352,259
210,400 INVERESK RESEARCH GROUP INCORPORATED+ 5,979,568
571,000 SELECT MEDICAL CORPORATION 9,535,700
32,845,485
-----------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS - 0.62%
610,000 MCDERMOTT INTERNATIONAL INCORPORATED+ 5,117,900
-----------
HOLDING & OTHER INVESTMENT OFFICES - 0.98%
157,600 4KIDS ENTERTAINMENT INCORPORATED+ 3,525,512
362,800 CAPITAL LEASE FUNDING INC.+ 4,651,096
8,176,608
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.53%
277,000 GAMESTOP CORPORATION CLASS A+ 4,991,540
209,200 GUITAR CENTER INCORPORATED+ 7,769,688
12,761,228
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 1.97%
113,200 ASYST TECHNOLOGIES INCORPORATED+ 931,636
504,000 ENTEGRIS INCORPORATED+ 6,380,640
229,200 KOMAG INCORPORATED+ 4,217,280
168,600 WATSCO INCORPORATED 4,889,400
16,418,956
-----------
INSURANCE AGENTS, BROKERS & SERVICE - 0.65%
204,700 RADWARE LIMITED+ 5,436,832
-----------
INSURANCE CARRIERS - 3.29%
235,600 AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY+ 3,027,460
274,600 ARGONAUT GROUP INCORPORATED+ 5,225,638
231,900 AXIS CAPITAL HOLDINGS LIMITED 6,852,645
170,700 DIRECT GENERAL CORPORATION 6,179,340
12,900 PLATINUM UNDERWRITERS HOLDINGS LIMITED 413,445
204,500 PXRE GROUP LIMITED 5,713,730
27,412,258
-----------
MANUFACTURING - 0.28%
629,000 PARADYNE NETWORKS INC+ 2,346,170
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS - 1.98%
186,500 BEI TECHNOLOGIES INCORPORATED 4,188,790
346,400 CREDENCE SYSTEMS CORPORATION+ 4,115,232
238,900 FORMFACTOR INCORPORATED+ 5,000,177
148,100 SONOSITE INCORPORATED+ 3,158,973
16,463,172
-----------
MEMBERSHIP ORGANIZATIONS - 0.11%
61,400 BRIGHTPOINT INCORPORATED+ 942,490
-----------
128
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MISCELLANEOUS RETAIL - 2.48%
303,600 MARVEL ENTERPRISES INCORPORATED+ $ 5,826,084
221,700 SPORTS AUTHORITY INCORPORATED+ 8,885,736
384,600 VALUEVISION MEDIA INCORPORATED+ 5,903,610
20,615,430
-----------
MOTION PICTURES - 1.80%
470,700 IMAX CORPORATION+ 2,772,423
639,300 LIONS GATE ENTERTAINMENT CORPORATION+ 3,995,625
437,400 MACROVISION CORPORATION+ 8,170,632
14,938,680
-----------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 3.31%
300,400 CENTRAL FREIGHT LINES INCORPORATED+ 3,950,260
393,100 OVERNITE CORPORATION 9,041,300
278,200 SIRVA INCORPORATED+ 6,710,184
233,700 YELLOW ROADWAY CORPORATION+ 7,868,679
27,570,423
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.69%
386,200 CAPITALSOURCE INCORPORATED+ 8,670,190
322,900 ENCORE CAPITAL GROUP INCORPORATED+ 5,363,369
14,033,559
-----------
OIL & GAS EXTRACTION - 1.82%
342,200 DENBURY RESOURCES INCORPORATED+ 5,769,492
290,100 PIONEER NATURAL RESOURCES 9,370,230
15,139,722
-----------
PAPER & ALLIED PRODUCTS - 1.39%
334,700 BOISE CASCADE CORPORATION 11,597,355
-----------
PETROLEUM REFINING & RELATED INDUSTRIES - 0.82%
252,000 ELKCORP 6,826,680
-----------
PRIMARY METAL INDUSTRIES - 0.75%
100,900 NUCOR CORPORATION 6,203,332
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.74%
222,400 BELO CORPORATION CLASS A 6,173,824
-----------
RAILROAD TRANSPORTATION - 0.69%
412,600 KANSAS CITY SOUTHERN+ 5,735,140
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.16%
271,650 JARDEN CORPORATION+ 9,646,292
-----------
SECURITY & COMMODITY BROKERS, DEALERS,
EXCHANGES & SERVICES - 0.80%
940,200 INSTINET GROUP INCORPORATED+ 6,628,410
-----------
TEXTILE MILL PRODUCTS - 0.62%
646,200 INTERFACE INCORPORATED+ 5,137,290
-----------
129
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TRANSPORTATION BY AIR - 1.80%
238,800 CHC HELICOPTER CORPORATION $ 6,581,328
436,000 SKYWEST INCORPORATED 8,388,640
14,969,968
------------
TRANSPORTATION EQUIPMENT - 1.29%
186,600 JLG INDUSTRIES INCORPORATED 2,668,380
566,200 WABTEC CORPORATION 8,062,688
10,731,068
------------
TRANSPORTATION SERVICES - 0.59%
221,300 PACER INTERNATIONAL INCORPORATED+ 4,877,452
------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.05%
224,600 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 5,484,732
261,100 SOURCE INTERLINK COMPANIES INCORPORATED+ 3,263,750
8,748,482
------------
WHOLESALE TRADE-DURABLE GOODS - 3.12%
243,100 CYTYC CORPORATION+ 5,408,974
175,500 HUGHES SUPPLY INCORPORATED 9,196,200
627,700 INGRAM MICRO INCORPORATED CLASS A+ 11,361,371
25,966,545
------------
TOTAL COMMON STOCK (COST $688,070,065) 807,927,428
------------
COLLATERAL FOR SECURITIES LENDING - 11.70%
COLLATERAL FOR SECURITY LENDING 97,376,128
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $97,376,127) 97,376,128
------------
WARRANTS - 0.00%
36,152 TIMCO AVIATION SERVICES INCORPORATED+(A) 181
TOTAL WARRANTS (COST $0) 181
------------
PRINCIPAL INTEREST RATE MATURITY DATE
CORPORATE BONDS & NOTES - 0.02%
$37,700 TIMCO AVIATION
SERVICES
INCORPORATED&(A) 8.00% 01/02/2007 188,501
------------
TOTAL CORPORATE BONDS & NOTES (COST $100) 188,501
------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 3.38%
MUTUAL FUND - 3.38%
28,125,851 WELLS FARGO MONEY MARKET TRUST~ 28,125,851
------------
TOTAL SHORT-TERM INVESTMENTS (COST $28,125,851) 28,125,851
------------
130
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TOTAL INVESTMENTS IN SECURITIES
(COST $813,572,143)* 112.21% $ 933,618,089
OTHER ASSETS AND LIABILITIES, NET (12.21) (101,599,339)
------ -------------
TOTAL NET ASSETS 100.00% $ 832,018,750
====== =============
+ NON-INCOME EARNING 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.
& PAYMENT-IN-KIND (PIK) SECURITIES ARE SECURITIES IN WHICH THE ISSUER MAY
MAKE INTEREST OR DIVIDEND PAYMENTS IN CASH OR ADDITIONAL SECURITIES. THESE
ADDITIONAL SECURITIES GENERALLY HAVE THE SAME TERMS AS THE ORIGINAL
HOLDINGS.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
131
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 96.59%
AMUSEMENT & RECREATION SERVICES - 0.89%
114,660 GAYLORD ENTERTAINMENT COMPANY+ $ 3,542,994
-----------
APPAREL & ACCESSORY STORES - 2.51%
158,340 AMERICAN EAGLE OUTFITTERS INCORPORATED+ 4,268,846
162,830 CHRISTOPHER & BANKS CORPORATION 3,437,341
107,750 TOO INCORPORATED+ 2,257,363
9,963,550
-----------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS &
SIMILAR MATERIALS - 0.94%
205,250 RUSSELL CORPORATION 3,747,865
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.08%
169,446 DOLLAR THRIFTY AUTOMOTIVE GROUP INCORPORATED+ 4,281,900
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS &
OPERATIVE BUILDERS - 2.75%
371,270 WALTER INDUSTRIES INCORPORATED 4,432,964
258,750 WCI COMMUNITIES INCORPORATED+ 6,476,512
10,909,476
-----------
BUSINESS SERVICES - 6.05%
195,050 DIGITALNET HOLDINGS INCORPORATED+ 3,979,020
239,100 INTERGRAPH CORPORATION+ 5,781,438
107,990 MARLIN BUSINESS SERVICES INCORPORATED+ 1,817,472
132,330 NCO GROUP INCORPORATED+ 3,092,552
288,020 RENT-WAY INCORPORATED+ 2,534,576
147,600 THQ INCORPORATED+ 2,985,948
217,660 UNITED RENTALS INCORPORATED+ 3,867,818
24,058,824
-----------
CHEMICALS & ALLIED PRODUCTS - 1.08%
151,470 HB FULLER COMPANY 4,307,807
-----------
COAL MINING - 1.19%
214,110 MASSEY ENERGY COMPANY 4,725,408
-----------
COMMUNICATIONS - 2.87%
150,110 CT COMMUNICATIONS INCORPORATED 2,076,021
159,240 EMMIS COMMUNICATIONS CORPORATION CLASS A+ 3,791,504
245,780 MASTEC INCORPORATED+ 2,327,537
400,000 MEDIACOM COMMUNICATIONS CORPORATION+ 3,208,000
11,403,062
-----------
DEPOSITORY INSTITUTIONS - 9.72%
275,146 BROOKLINE BANCORP INCORPORATED 4,388,579
100,160 CULLEN FROST BANKERS INCORPORATED 4,282,842
133,650 DIME COMMUNITY BANCSHARES 2,719,777
93,330 FIRST REPUBLIC BANK 3,598,805
319,880 GOLD BANC CORP INCORPORATED 5,214,044
79,360 PFF BANCORP INCORPORATED 3,025,997
220,430 PROVIDENT FINANCIAL SERVICES INCORPORATED 4,119,837
132
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS (continued)
133,910 SUSQUEHANNA BANCSHARES INCORPORATED $ 3,432,113
189,180 TIERONE CORPORATION 4,443,838
168,470 UMPQUA HOLDINGS CORPORATION 3,401,409
38,627,241
-----------
EATING & DRINKING PLACES - 3.41%
755,020 CKE RESTAURANTS INCORPORATED+ 7,474,698
130,000 LANDRY'S RESTAURANTS INCORPORATED 3,877,900
201,220 TRIARC COMPANIES INCORPORATED CLASS B 2,205,371
13,557,969
-----------
ELECTRIC, GAS & SANITARY SERVICES - 3.24%
124,530 ALLETE INCORPORATED 4,369,758
197,440 ALLIANT ENERGY CORPORATION 5,145,286
175,500 CLECO CORPORATION 3,339,765
12,854,809
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT &
COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.24%
184,480 DUPONT PHOTOMASKS INCORPORATED+ 4,291,005
127,900 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+ 3,073,437
370,810 GRAFTECH INTERNATIONAL LIMITED+ 5,543,610
382,590 JACUZZI BRANDS INCORPORATED+ 3,588,694
281,470 TECHNITROL INCORPORATED+ 5,291,636
188,250 TOLLGRADE COMMUNICATIONS INCORPORATED+ 3,004,470
24,792,852
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT &
RELATED SERVICES - 1.57%
216,800 URS CORPORATION+ 6,239,504
-----------
FOOD & KINDRED PRODUCTS - 2.67%
51,800 ADOLPH COORS COMPANY CLASS B 3,597,510
352,140 HERCULES INCORPORATED+ 4,042,567
131,600 PILGRIMS PRIDE CORPORATION 2,951,788
10,591,865
-----------
FOOD STORES - 0.89%
441,700 PATHMARK STORES INCORPORATED+ 3,524,766
-----------
GENERAL MERCHANDISE STORES - 2.10%
264,930 SAKS INCORPORATED+ 4,662,768
250,960 SHOPKO STORES INCORPORATED+ 3,669,035
8,331,803
-----------
HEALTH SERVICES - 1.77%
441,330 BEVERLY ENTERPRISES INCORPORATED+ 2,824,512
136,020 TRIAD HOSPITALS INCORPORATED+ 4,192,136
7,016,648
-----------
133
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
HOLDING & OTHER INVESTMENT OFFICES - 10.37%
50,860 ALEXANDRIA REAL ESTATE EQUITIES INCORPORATED $ 3,204,180
78,780 EASTGROUP PROPERTIES INCORPORATED 2,796,690
205,340 EQUITY ONE INCORPORATED 3,946,635
330,990 FELCOR LODGING TRUST INCORPORATED+ 3,448,916
118,560 GLADSTONE CAPITAL CORPORATION 2,666,414
167,720 GLENBOROUGH REALTY TRUST INCORPORATED 3,748,542
91,400 HEADWATERS INCORPORATED+ 2,341,668
100,210 KILROY REALTY CORPORATION 3,557,455
150,530 LASALLE HOTEL PROPERTIES 3,552,508
517,770 MERISTAR HOSPITALITY CORPORATION+ 3,598,501
142,980 NATIONWIDE HEALTH PROPERTIES INCORPORATED 3,184,165
137,460 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 5,176,744
41,222,418
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.11%
164,600 AZTAR CORPORATION+ 4,034,346
173,300 ISLE OF CAPRI CASINOS INCORPORATED+ 4,356,762
8,391,108
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 5.47%
132,600 FLOWSERVE CORPORATION+ 2,777,970
237,500 JOY GLOBAL INCORPORATED 6,666,625
108,000 ROBBINS & MYERS INCORPORATED 2,327,400
107,332 SPARTECH CORPORATION 2,672,567
284,700 WESTERN DIGITAL CORPORATION+ 3,197,181
104,300 YORK INTERNATIONAL CORPORATION 4,100,033
21,741,776
-----------
INSURANCE CARRIERS - 4.29%
107,240 AMERIGROUP CORPORATION+ 4,900,868
171,150 ARGONAUT GROUP INCORPORATED+ 3,256,985
142,200 PLATINUM UNDERWRITERS HOLDINGS LIMITED 4,557,510
360,510 UNIVERSAL AMERICAN FINANCIAL CORPORATION+ 4,326,120
17,041,483
-----------
LEATHER & LEATHER PRODUCTS - 0.83%
141,800 GENESCO INCORPORATED+ 3,286,924
-----------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS
TRANSPORTATION - 1.08%
295,880 LAIDLAW INTERNATIONAL INCORPORATED+ 4,305,054
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.86%
191,000 ARROW INTERNATIONAL INCORPORATED 5,708,990
140,900 COHERENT INCORPORATED+ 3,704,261
254,900 WHITE ELECTRONIC DESIGNS CORPORATION+ 1,949,985
11,363,236
-----------
MISCELLANEOUS RETAIL - 0.81%
211,300 ACTION PERFORMANCE COMPANIES INCORPORATED 3,226,551
-----------
134
PORTFOLIO OF INVESTMENTS -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.70%
195,850 QUALITY DISTRIBUTION INCORPORATED+ $ 2,761,485
-----------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.01%
153,230 FEDERAL AGRICULTURAL MORTGAGE CORPORATION CLASS C+ 4,016,158
-----------
OIL & GAS EXTRACTION - 2.51%
330,720 BRIGHAM EXPLORATION COMPANY+ 2,430,792
145,540 CAL DIVE INTERNATIONAL INCORPORATED+ 3,759,298
156,060 SOUTHWESTERN ENERGY COMPANY+ 3,764,167
9,954,257
-----------
PAPER & ALLIED PRODUCTS - 1.40%
190,330 CARAUSTAR INDUSTRIES INCORPORATED+ 2,217,345
193,700 POPE & TALBOT INCORPORATED 3,329,703
5,547,048
-----------
PERSONAL SERVICES - 0.79%
84,030 G & K SERVICES INCORPORATED CLASS A 3,127,597
-----------
PRIMARY METAL INDUSTRIES - 3.10%
209,410 LONE STAR TECHNOLOGIES INCORPORATED+ 3,700,275
73,280 PRECISION CASTPARTS CORPORATION 3,226,518
217,970 STEEL DYNAMICS INCORPORATED+ 5,401,297
12,328,090
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.72%
143,730 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 2,874,600
-----------
RAILROAD TRANSPORTATION - 0.75%
247,190 RAILAMERICA INCORPORATED+ 2,978,640
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 0.73%
148,440 A SCHULMAN INCORPORATED 2,916,846
-----------
TRANSPORTATION BY AIR - 0.80%
177,740 EGL INCORPORATED+ 3,192,210
-----------
TRANSPORTATION EQUIPMENT - 1.17%
170,680 AFTERMARKET TECHNOLOGY CORPORATION+ 2,507,289
67,820 UNITED DEFENSE INDUSTRIES INCORPORATED+ 2,155,998
4,663,287
-----------
TRANSPORTATION SERVICES - 1.13%
202,790 GATX CORPORATION 4,495,854
-----------
WHOLESALE TRADE-DURABLE GOODS - 2.99%
39,750 BORGWARNER INCORPORATED 3,371,992
147,100 TECH DATA CORPORATION+ 6,022,274
258,180 VISTEON CORPORATION 2,470,783
11,865,049
-----------
TOTAL COMMON STOCK (COST $306,718,656) 383,778,014
-----------
135
WELLS FARGO MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 15.06%
COLLATERAL FOR SECURITY LENDING $ 59,830,206
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $59,830,206) 59,830,206
------------
SHORT-TERM INVESTMENTS - 3.60%
MUTUAL FUND - 3.60%
14,310,279 WELLS FARGO MONEY MARKET TRUST~ 14,310,279
------------
TOTAL SHORT-TERM INVESTMENTS (COST $14,310,279) 14,310,279
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $380,859,141)* 115.25% $457,918,499
OTHER ASSETS AND LIABILITIES, NET (15.25) (60,578,863)
------ ------------
TOTAL NET ASSETS 100.00% $397,339,636
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
136
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF ASSETS AND LIABILITIES --
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED EQUITY INTERNATIONAL
GROWTH INCOME INDEX EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................ $176,864,299 $1,827,602,820 $1,767,843,137 $452,759,201
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................. 21,154,836 74,618,356 212,187,464 32,499,510
INVESTMENTS IN AFFILIATES ................................. 3,091,087 7,770,431 45,995,448 14,367,873
------------ -------------- -------------- ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............ 201,110,222 1,909,991,607 2,026,026,049 499,626,584
------------ -------------- -------------- ------------
CASH ...................................................... 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS .......... 0 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ........................... 0 0 98,084 0
RECEIVABLES FOR DIVIDENDS AND INTEREST .................... 59,158 3,255,387 2,216,012 3,014,061
PREPAID EXPENSES AND OTHER ASSETS ......................... 0 50,563 55,849 5,143
------------ -------------- -------------- ------------
TOTAL ASSETS ................................................. 201,169,380 1,913,297,557 2,028,395,994 502,645,788
------------ -------------- -------------- ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ... 0 0 19,700 0
FOREIGN TAXES PAYABLE ..................................... 0 0 0 11,979
PAYABLE FOR INVESTMENTS PURCHASED ......................... 0 0 0 1,146,076
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..... 39,034 876,756 85,041 389,269
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ................... 2,241 330 621 1,696
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................... 21,154,836 74,618,356 212,187,464 32,499,510
ACCRUED EXPENSES AND OTHER LIABILITIES .................... 30,453 0 0 0
TOTAL LIABILITIES ......................................... 21,226,564 75,495,442 212,292,826 34,048,530
------------ -------------- -------------- ------------
TOTAL NET ASSETS ............................................. $179,942,816 $1,837,802,115 $1,816,103,168 $468,597,258
============ ============== ============== ============
INVESTMENT AT COST ........................................... $181,839,905 $1,475,587,968 $1,737,628,070 $412,541,705
============ ============== ============== ============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 20,573,355 $ 72,281,114 $ 204,259,945 $ 31,324,462
------------ -------------- -------------- ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
138
STATEMENTS OF ASSETS AND LIABILITIES -- WELLS FARGO MASTER PORTFOLIOS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP LARGE CAP LARGE COMPANY
APPRECIATION VALUE GROWTH OVERSEAS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................ $ 96,584,742 $202,934,244 $3,526,173,458 $156,038,400
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................. 12,213,589 37,724,746 214,294,999 7,702,520
INVESTMENTS IN AFFILIATES ................................. 2,035,360 10,690,546 33,844,662 431,711
------------ ------------ -------------- ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............ 110,833,691 251,349,536 3,774,313,119 164,172,631
------------ ------------ -------------- ------------
CASH ...................................................... 0 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS .......... 0 0 0 0
RECEIVABLE FOR INVESTMENTS SOLD ........................... 447,208 2,725,549 0 0
RECEIVABLES FOR DIVIDENDS AND INTEREST .................... 94,317 164,718 3,429,883 889,851
PREPAID EXPENSES AND OTHER ASSETS ......................... 0 0 143,303 1,225
------------ ------------ -------------- ------------
TOTAL ASSETS ................................................. 111,375,216 254,239,803 3,811,730,967 165,063,707
------------ ------------ -------------- ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ... 0 0 0 0
FOREIGN TAXES PAYABLE ..................................... 5 0 358,346 0
PAYABLE FOR INVESTMENTS PURCHASED ......................... 249,788 3,740,497 33,844,662 0
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..... 39,167 92,767 2,015,252 102,382
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ................... 2,219 1,325 0 800
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................... 12,213,589 37,724,746 214,294,999 7,702,520
ACCRUED EXPENSES AND OTHER LIABILITIES .................... 58,270 15,808 0 0
TOTAL LIABILITIES ............................................ 12,563,038 41,575,143 250,513,259 7,805,702
------------ ------------ -------------- ------------
TOTAL NET ASSETS ............................................. $ 98,812,178 $212,664,660 $3,561,217,708 $157,258,005
============ ============ ============== ============
INVESTMENT AT COST ........................................... $ 98,847,437 $234,735,036 $3,221,352,913 $142,369,774
============ ============ ============== ============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 12,139,056 $ 35,757,909 $ 206,928,054 $ 7,513,455
------------ ------------ -------------- ------------
SMALL CAP SMALL COMPANY SMALL COMPANY
INDEX GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................ $299,347,591 $808,116,110 $383,778,014
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................. 81,879,447 97,376,128 59,830,206
INVESTMENTS IN AFFILIATES ................................. 9,730,045 28,125,851 14,310,279
------------ ------------ ------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............ 390,957,083 933,618,089 457,918,499
CASH ...................................................... 0 0 0
VARIATION MARGIN RECEIVABLE ON FUTURES CONTRACTS .......... 69,400 0 0
RECEIVABLE FOR INVESTMENTS SOLD ........................... 1,718,878 13,205,625 1,845,564
RECEIVABLES FOR DIVIDENDS AND INTEREST .................... 191,668 226,353 196,515
PREPAID EXPENSES AND OTHER ASSETS ......................... 0 7,952 0
------------ ------------ ------------
TOTAL ASSETS ................................................. 392,937,029 947,058,019 459,960,578
------------ ------------ ------------
LIABILITIES
PAYABLE FOR DAILY VARIATION MARGIN ON FUTURES CONTRACTS ... 0 0 0
FOREIGN TAXES PAYABLE ..................................... 0 0 0
PAYABLE FOR INVESTMENTS PURCHASED ......................... 589,133 17,089,644 2,523,507
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ..... 31,579 571,940 241,710
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ................... 2,047 1,557 1,990
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................... 81,879,447 97,376,128 59,830,206
ACCRUED EXPENSES AND OTHER LIABILITIES .................... 7,267 0 23,529
TOTAL LIABILITIES ......................................... 82,509,473 115,039,269 62,620,942
------------ ------------ ------------
TOTAL NET ASSETS ............................................. $310,427,556 $832,018,750 $397,339,636
============ ============ ============
INVESTMENT AT COST ........................................... $335,335,508 $813,512,143 $380,859,141
============ ============ ============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 78,783,559 $ 92,665,711 $ 57,362,011
------------ ------------ ------------
139
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF OPERATIONS --
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
- --------------------------------------------------------------------------------
DISCIPLINED EQUITY INTERNATIONAL
GROWTH INCOME INDEX EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ..................................................... $ 478,286 $ 22,160,856 $ 14,839,960 $ 3,020,750
INTEREST .......................................................... 0 652 11,478 0
INCOME FROM AFFILIATED SECURITIES ................................. 24,379 37,236 124,004 40,266
SECURITIES LENDING INCOME ......................................... 6,840 52,520 98,397 38,827
----------- ------------ ------------ -----------
TOTAL INVESTMENT INCOME .............................................. 509,505 22,251,264 15,073,839 3,099,843
----------- ------------ ------------ -----------
EXPENSES
ADVISORY FEES ..................................................... 467,159 6,868,527 1,288,928 2,428,401
CUSTODY FEES ...................................................... 12,458 183,161 171,857 242,840
AUDIT FEES ........................................................ 8,473 11,531 11,029 12,534
LEGAL FEES ........................................................ 7,551 7,551 7,551 7,551
TRUSTEES' FEES .................................................... 3,195 3,195 3,195 3,195
OTHER FEES AND EXPENSES ........................................... 1,290 16,325 9,783 8,159
----------- ------------ ------------ -----------
TOTAL EXPENSES ....................................................... 500,126 7,090,290 1,492,343 2,702,680
----------- ------------ ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (289,815) (2,010,233) (1,072,627) (466,799)
NET EXPENSES ...................................................... 210,311 5,080,057 419,716 2,235,881
----------- ------------ ------------ -----------
NET INVESTMENT INCOME (LOSS) ......................................... 299,194 17,171,207 14,654,123 863,962
----------- ------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 10,181,133 99,383,033 12,055,797 26,595,398
FUTURE TRANSACTIONS ............................................... 0 0 2,330,796 0
----------- ------------ ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 10,181,133 99,383,033 14,386,593 26,595,398
----------- ------------ ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 6,725,878 171,345,843 185,653,277 56,352,766
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 0 (253,793)
FUTURE TRANSACTIONS ............................................... 0 0 822,838 0
----------- ------------ ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ....................................................... 6,725,878 171,345,843 186,476,115 56,098,973
=========== ============ ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 16,907,011 270,728,876 200,862,708 82,694,371
----------- ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $17,206,205 $287,900,083 $215,516,831 $83,558,333
=========== ============ ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 101,085 $ 0 $ 313,225
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
140
STATEMENTS OF OPERATIONS -- WELLS FARGO MASTER PORTFOLIOS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP LARGE CAP LARGE COMPANY
APPRECIATION VALUE GROWTH OVERSEAS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(2)
------------ ----------- ------------- ------------
INVESTMENT INCOME
DIVIDENDS (1) ..................................................... $ 505,546 $ 1,889,903 $ 11,091,638 $ 1,423,910
INTEREST .......................................................... 0 0 77 9,723
INCOME FROM AFFILIATED SECURITIES ................................. 17,321 22,529 270,831 10,517
SECURITIES LENDING INCOME ......................................... 9,645 10,256 118,296 2,396
----------- ----------- ------------ -----------
TOTAL INVESTMENT INCOME .............................................. 532,512 1,922,688 11,480,842 1,446,546
----------- ----------- ------------ -----------
EXPENSES
ADVISORY FEES ..................................................... 335,928 746,536 12,993,713 611,329
CUSTODY FEES ...................................................... 9,598 19,908 346,499 61,000
AUDIT FEES ........................................................ 9,026 6,017 11,531 5,031
LEGAL FEES ........................................................ 7,551 7,551 7,551 0
TRUSTEES' FEES .................................................... 3,195 3,009 3,195 2,515
OTHER FEES AND EXPENSES ........................................... 1,504 15,216 16,737 831
----------- ----------- ------------ -----------
TOTAL EXPENSES ....................................................... 366,802 798,237 13,379,226 680,706
----------- ----------- ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (101,575) (241,048) (1,807,300) (210,159)
NET EXPENSES ...................................................... 265,227 557,189 11,571,926 470,547
----------- ----------- ------------ -----------
NET INVESTMENT INCOME (LOSS) ......................................... 267,285 1,365,499 (91,084) 975,999
----------- ----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 8,148,894 7,056,684 56,977,127 2,355,691
FUTURE TRANSACTIONS ............................................... 0 0 0 0
----------- ----------- ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 8,148,894 7,056,684 56,977,127 2,355,691
----------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 3,182,882 21,272,044 209,165,061 21,810,624
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 0 0
FUTURE TRANSACTIONS ............................................... 0 0 0 0
----------- ----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ....................................................... 3,182,882 21,272,044 209,165,061 21,810,624
=========== =========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 11,331,776 28,328,728 266,142,188 24,166,315
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $11,599,061 $29,694,227 $266,051,104 $25,142,314
=========== =========== ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 694 $ 0 $ 358,346 $ 150,557
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
SMALL CAP SMALL COMPANY SMALL COMPANY
INDEX GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- -------------
INVESTMENT INCOME
DIVIDENDS (1) ..................................................... $ 1,126,536 $ 693,930 $ 1,931,925
INTEREST .......................................................... 13,944 100 0
INCOME FROM AFFILIATED SECURITIES ................................. 97,459 88,351 50,119
SECURITIES LENDING INCOME ......................................... 56,320 74,400 32,294
----------- ------------ -----------
TOTAL INVESTMENT INCOME .............................................. 1,294,259 856,781 2,014,338
----------- ------------ -----------
EXPENSES
ADVISORY FEES ..................................................... 352,217 3,526,878 1,576,122
CUSTODY FEES ...................................................... 28,177 78,375 35,025
AUDIT FEES ........................................................ 8,473 9,525 8,473
LEGAL FEES ........................................................ 7,551 7,551 7,551
TRUSTEES' FEES .................................................... 3,195 3,195 3,195
OTHER FEES AND EXPENSES ........................................... 1,261 4,440 1,372
----------- ------------ -----------
TOTAL EXPENSES ....................................................... 400,874 3,629,964 1,631,738
----------- ------------ -----------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ...................... (201,277) (387,291) (306,834)
NET EXPENSES ...................................................... 199,597 3,242,673 1,324,904
----------- ------------ -----------
NET INVESTMENT INCOME (LOSS) ......................................... 1,094,662 (2,385,892) 689,434
----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 8,521,043 113,774,200 16,940,937
FUTURE TRANSACTIONS ............................................... 2,507,510 0 0
----------- ------------ -----------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 11,028,553 113,774,200 16,940,937
----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ... 38,910,724 15,462,627 45,392,956
FORWARD FOREIGN CURRENCY CONTRACTS ................................ 0 0 0
FUTURE TRANSACTIONS ............................................... 1,417,025 0 0
----------- ------------ -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
INVESTMENTS ....................................................... 40,327,749 15,462,627 45,392,956
=========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 51,356,302 129,236,827 62,333,893
----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ........................................................ $52,450,964 $126,850,935 $63,023,327
=========== ============ ===========
(1) NET OF FOREIGN WITHHOLDING TAXES OF ........................... $ 0 $ 10,715 $ 0
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
141
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 68,952,232 56,814,141
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 299,194 179,712
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 10,181,133 (64,187)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 6,725,878 14,031,766
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 17,206,205 14,147,291
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 104,210,277 16,389,552
WITHDRAWALS ................................................................ (10,425,898) (18,398,752)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. 93,784,379 (2,009,200)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 110,990,584 12,138,091
============ ============
ENDING NET ASSETS ............................................................. $179,942,816 $ 68,952,232
------------ ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
142
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 1,722,271,878 1,711,701,493
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 17,171,207 36,000,448
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 99,383,033 50,225,235
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 171,345,843 250,428,035
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 287,900,083 336,653,718
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 29,410,273 210,108,839
WITHDRAWALS ................................................................ (201,780,119) (536,192,172)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. (172,369,846) (326,083,333)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 115,530,237 10,570,385
============== ==============
ENDING NET ASSETS ............................................................. $1,837,802,115 $1,722,271,878
-------------- --------------
INDEX PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 1,519,471,820 1,164,265,860
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 14,654,123 23,010,345
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 14,386,593 14,525,511
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 186,476,115 246,896,921
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 215,516,831 284,432,777
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 183,195,630 258,211,867
WITHDRAWALS ................................................................ (102,081,113) (187,438,684)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. 81,114,517 70,773,183
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 296,631,348 355,205,960
============== ==============
ENDING NET ASSETS ............................................................. $1,816,103,168 $1,519,471,820
-------------- --------------
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 558,639,567 481,041,740
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 863,962 4,337,817
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 26,595,398 (79,412,734)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 56,098,973 168,496,802
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 83,558,333 93,421,885
------------- -------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 22,606,510 158,117,683
WITHDRAWALS ................................................................ (196,207,152) (173,941,741)
------------- -------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. (173,600,642) (15,824,058)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... (90,042,309) 77,597,827
============= =============
ENDING NET ASSETS ............................................................. $ 468,597,258 $ 558,639,567
------------- -------------
143
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE CAP APPRECIATION PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 87,988,404 63,323,538
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 267,285 221,608
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 8,148,894 (3,564,699)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 3,182,882 15,929,531
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 11,599,061 12,586,440
----------- ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 5,574,313 29,128,969
WITHDRAWALS ................................................................ (6,349,600) (17,050,543)
----------- ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. (775,287) 12,078,426
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 10,823,774 24,664,866
=========== ============
ENDING NET ASSETS ............................................................. $98,812,178 $ 87,988,404
----------- ------------
(1) THIS PORTFOLIO COMMENCED OPERATIONS ON AUGUST 29, 2003.
(2) THIS PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
144
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
LARGE CAP VALUE
PORTFOLIO(1)
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 176,504,265 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 1,365,499 52,379
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 7,056,684 25,384
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 21,272,044 (4,657,544)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 29,694,227 (4,579,781)
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 17,761,068 181,318,237
WITHDRAWALS ................................................................ (11,294,900) (234,191)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. 6,466,168 181,084,046
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 36,160,395 176,504,265
============ ============
ENDING NET ASSETS ............................................................. $212,664,660 $176,504,265
------------ ------------
LARGE COMPANY
GROWTH PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
- ---------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 3,142,794,537 2,012,518,027
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... (91,084) (6,229,112)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 56,977,127 (64,373,898)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 209,165,061 677,253,867
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 266,051,104 606,650,857
-------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 438,725,668 708,049,977
WITHDRAWALS ................................................................ (286,353,601) (184,424,324)
-------------- --------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. 152,372,067 523,625,653
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 418,423,171 1,130,276,510
============== ==============
ENDING NET ASSETS ............................................................. $3,561,217,708 $3,142,794,537
-------------- --------------
OVERSEAS PORTFOLIO(2)
---------------------
(UNAUDITED)
FOR THE
PERIOD ENDED
MARCH 31, 2004
- -------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ....................................................... 0
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................... 975,999
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 2,355,691
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ........ 21,810,624
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 25,142,314
------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS .............................................................. 149,935,964
WITHDRAWALS ................................................................ (17,820,273)
------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. 132,115,691
------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 157,258,005
============
ENDING NET ASSETS ............................................................. $157,258,005
------------
145
WELLS FARGO MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP INDEX PORTFOLIO
-----------------------------------
(UNAUDITED)
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------
BEGINNING NET ASSETS ................................ 239,357,242 141,023,226
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................ 1,094,662 1,430,041
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 11,028,553 6,972,745
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ................................... 40,327,749 42,099,307
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .......................................... 52,450,964 50,502,093
------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ....................................... 38,352,719 81,762,912
WITHDRAWALS ......................................... (19,733,369) (33,930,989)
------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ................................ 18,619,350 47,831,923
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................. 71,070,314 98,334,016
============ ============
ENDING NET ASSETS ...................................... $310,427,556 $239,357,242
------------ ------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
146
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO SMALL COMPANY VALUE PORTFOLIO
----------------------------------- -----------------------------------
(UNAUDITED) (UNAUDITED)
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED PERIOD ENDED
MARCH 31, 2004 SEPTEMBER 30, 2003 MARCH 31, 2004 SEPTEMBER 30, 2003
-------------- ------------------ -------------- ------------------
BEGINNING NET ASSETS ................................ 673,051,277 470,274,154 291,539,627 154,974,427
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................ (2,385,892) (1,931,579) 689,434 1,581,492
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............. 113,774,200 57,009,543 16,940,937 17,897,659
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
OF INVESTMENTS ................................... 15,462,627 126,797,328 45,392,956 58,474,588
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS .......................................... 126,850,935 181,875,292 63,023,327 77,953,739
------------ ------------ ------------ ------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ....................................... 71,248,909 117,055,759 64,787,892 108,693,698
WITHDRAWALS ......................................... (39,132,371) (96,153,928) (22,011,210) (50,082,237)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ................................ 32,116,538 20,901,831 42,776,682 58,611,461
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................. 158,967,473 202,777,123 105,800,009 136,565,200
============ ============ ============ ============
ENDING NET ASSETS ...................................... $832,018,750 $673,051,277 $397,339,636 $291,539,627
------------ ============ ============ ============
147
WELLS FARGO MASTER PORTFOLIOS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
-------------------------------------------------------------- PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES RETURN(3) RATE
- ---------------------------------------------------------------------------------------------------------------------------------
DISCIPLINED GROWTH
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.48% 0.80% (0.47)% 0.33% 14.57% 59%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.28% 0.88% (0.15)% 0.73% 25.65% 117%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.27% 0.91% (0.18)% 0.73% (12.57)% 156%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 0.15% 0.82% (0.10)% 0.72% (20.55)% 181%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 0.20% 0.84% (0.09)% 0.75% 19.94% 106%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. (0.04)% 1.02% (0.05)% 0.97% 0.07% 21%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 0.15% 1.02% (0.05)% 0.97% 9.67% 90%
EQUITY INCOME
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 1.87% 0.77% (0.22)% 0.55% 17.20% 8%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 2.01% 0.78% (0.11)% 0.67% 20.66% 9%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 1.61% 0.78% (0.10)% 0.68% (19.49)% 12%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 1.29% 0.78% (0.10)% 0.68% (8.61)% 3%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.42% 0.76% (0.09)% 0.67% 1.59% 9%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 1.43% 0.57% (0.03)% 0.54% (11.66)% 5%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 1.53% 0.57% (0.02)% 0.55% 15.13% 3%
INDEX
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 1.71% 0.17% (0.12)% 0.05% 14.06% 1%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 1.70% 0.18% (0.05)% 0.13% 24.42% 3%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 1.40% 0.18% (0.05)% 0.13% (20.52)% 4%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 1.23% 0.18% (0.05)% 0.13% (26.56)% 2%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.13% 0.18% (0.05)% 0.13% 13.21% 8%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 1.25% 0.23% (0.05)% 0.18% (2.92)% 11%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 1.35% 0.23% (0.05)% 0.18% 20.78% 4%
INTERNATIONAL EQUITY
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.36% 1.11% (0.19)% 0.92% 18.13% 20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.81% 1.12% (0.03)% 1.09% 18.39% 75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.54% 1.26% (0.02)% 1.24% (19.04)% 38%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 0.57% 1.31% (0.04)% 1.27% (28.86)% 33%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 0.06% 1.39% (0.09)% 1.30% 21.90% 64%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.21% 1.40% (0.00)% 1.40% 34.91% 11%
FEBRUARY 12, 1999(2) TO MAY 31, 1999 ............... 1.92% 1.45% (0.05)% 1.40% 3.84% 12%
LARGE CAP APPRECIATION
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.56% 0.76% (0.21)% 0.55% 13.17% 84%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.29% 0.81% (0.09)% 0.72% 18.50% 153%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.37% 0.88% (0.16)% 0.72% (20.04)% 123%
AUGUST 31, 2001(2) TO SEPTEMBER 30, 2001 ........... 1.51% 0.79% (0.07)% 0.72% (7.01)% 10%
LARGE CAP VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 1.37% 0.80% (0.24)% 0.56% 16.70% 67%
AUGUST 29, 2003(2) TO SEPTEMBER 30, 2003 ........... 0.64% 0.86% (0.32)% 0.54% (1.80)% 3%
LARGE COMPANY GROWTH
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... (0.01)% 0.77% (0.11)% 0.66% 8.53% 9%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. (0.24)% 0.78% (0.02)% 0.76% 27.90% 13%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. (0.34)% 0.78% 0.00% 0.78% (22.32)% 18%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. (0.29)% 0.78% 0.00% 0.78% (39.70)% 13%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. (0.30)% 0.77% 0.00% 0.77% 33.13% 9%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. (0.07)% 0.72% (0.03)% 0.69% (0.03)% 5%
JUNE 1, 1998 TO MAY 31, 1999 ....................... (0.19)% 0.72% (0.01)% 0.71% 40.63% 28%
OVERSEAS
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 31, 2003(2) TO MARCH 31, 2004 (UNAUDITED)... 1.60% 1.12% (0.35)% 0.77% 17.00% 11%
SMALL CAP INDEX
- ---------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) ...... 0.78% 0.28% (0.14)% 0.14% 21.53% 8%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 .............. 0.74% 0.31% (0.02)% 0.29% 27.79% 11%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 .............. 0.57% 0.33% (0.01)% 0.32% (2.60)% 17%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 .............. 0.90% 0.33% (0.01)% 0.32% (12.27)% 25%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 .............. 1.03% 0.34% (0.01)% 0.33% 23.09% 42%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ................. 0.53% 0.50% (0.06)% 0.44% 0.53% 23%
JUNE 1, 1998 TO MAY 31, 1999 ....................... 0.76% 0.48% (0.04)% 0.44% (7.28)% 26%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
148
FINANCIAL HIGHLIGHTS WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
-------------------------------------------------------------- PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES(1) WAIVED EXPENSES RETURN(3) RATE
- -------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... (0.61)% 0.92% (0.10)% 0.82% 18.69% 77%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ (0.35)% 0.94% (0.02)% 0.92% 37.90% 163%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ (0.40)% 0.94% 0.00% 0.94% (19.95)% 169%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ (0.17)% 0.94% 0.00% 0.94% (23.09)% 206%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ (0.28)% 0.94% 0.00% 0.94% 34.41% 203%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... (0.22)% 0.98% (0.04)% 0.94% (1.41)% 55%
JUNE 1, 1998 TO MAY 31, 1999 ..................... (0.25)% 0.98% 0.00% 0.98% (10.45)% 154%
SMALL COMPANY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2003 TO MARCH 31, 2004 (UNAUDITED) .... 0.39% 0.93% (0.18)% 0.75% 20.83% 24%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............ 0.70% 0.95% (0.16)% 0.79% 38.33% 80%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............ 0.68% 0.98% (0.19)% 0.79% (2.16)% 98%
OCTOBER 1, 2000 TO SEPTEMBER 30, 2001 ............ 1.32% 0.97% (0.18)% 0.79% 10.70% 90%
OCTOBER 1, 1999 TO SEPTEMBER 30, 2000 ............ 1.37% 1.00% (0.19)% 0.81% 14.05% 114%
JUNE 1, 1999 TO SEPTEMBER 30, 1999 ............... 0.83% 1.04% (0.04)% 1.00% (4.23)% 28%
JUNE 1, 1998 TO MAY 31, 1999 ..................... 0.76% 1.04% (0.05)% 0.99% (11.22)% 97%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
149
WELLS FARGO MASTER PORTFOLIOS 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) Commencement of operations.
(3) Total return calculations would have been lower had certain expenses not
been waived or reimbursed during the periods shown. Returns for periods
less than one year are not annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
150
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Master Trust (the "Trust") is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust currently has 16 separate investment
portfolios. These financial statements present the Disciplined Growth
Portfolio, Equity Income Portfolio, Index Portfolio, International Equity
Portfolio, Large Cap Appreciation Portfolio, Large Cap Value Portfolio,
Large Company Growth Portfolio, Overseas Portfolio, Small Cap Index
Portfolio, Small Company Growth Portfolio, and Small Company Value
Portfolio (each, a "Fund" and collectively, the "Funds").
Interests in the Funds are sold without any sales charge in private
placement transactions to qualified investors, including open-end
management investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of
the Trust, 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.
Securities denominated in foreign currencies are translated into
U.S. dollars using the closing rates of exchange in effect on the day of
valuation. If trading or events occurring in other markets after the close
of the principal exchange in which the foreign investments are traded are
expected to materially affect the value of the investments, then those
investments are fair valued following procedures approved by the Board of
Trustees.
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.
Dividend income is recognized on the ex-dividend date, except for
certain dividends from foreign securities, which are recorded as soon as
the Fund is informed of the ex-dividend date. Dividend income from foreign
securities is recorded net of foreign taxes withheld where recovery of
such taxes is not assured.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal
income tax purposes. The Funds of the Trust are not required to pay
federal income taxes on their net investment income and net capital gain
as they are treated as partnerships for federal income tax purposes. All
interest, dividends, gains and losses of a Fund is deemed to have been
"passed through" to the interestholders in proportion to their holdings of
the Fund regardless of whether such interest, dividends, or gains have
been distributed by the Fund.
FUTURES CONTRACTS
The Fund(s) may purchase futures contracts to gain exposure to
market changes, which may be more efficient or cost effective than
actually buying the securities. A futures contract is an agreement between
parties to buy or sell a security at a set price on a future date. Upon
entering into such a contract, a Fund is required to pledge to the broker
an amount of cash, U.S. Government obligations or other high-quality debt
securities equal to the minimum "initial margin" requirements of the
exchange on which the futures contract is traded. Pursuant to the
contract, the Fund agrees to receive from or pay to the broker an
151
WELLS FARGO MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
amount of cash equal to the daily fluctuation in the value of the
contract. Such receipts or payments are known as "variation margin" and
are recorded by the Fund as unrealized gains or losses. When the contract
is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. Pursuant to regulations and/or
published positions of the Securities and Exchange Commission (the "SEC")
for long futures positions, the Fund is required to segregate highly
liquid securities as permitted by the SEC in connection with futures
transactions in an amount generally equal to the entire value of the
underlying contracts. Risks of entering into futures contracts include the
possibility that there may be an illiquid market and that a change in the
value of the contract may not correlate with changes in the value of the
underlying securities. At March 31, 2004, the following Fund(s) held
futures contracts:
Net Unrealized
Expiration Notional Appreciation
Fund Contracts Type Date Contract Value (Depreciation)
INDEX PORTFOLIO 219 Long S&P 500 Index June 2004 61,588,275 (124,600)
SMALL CAP INDEX PORTFOLIO 48 Long Russell 2000 Index June 2004 14,174,400 345,000
REPURCHASE AGREEMENTS
The Fund(s) may invest in repurchase agreements and may participate
in pooled repurchase agreement transactions with other funds advised by
Wells Fargo Funds Management, LLC. The repurchase agreements must be fully
collateralized based on values that are marked to market daily. The
collateral may be held by an agent bank under a tri-party agreement. It is
the custodian's responsibility to value collateral daily and to take
action to obtain additional collateral as necessary to maintain market
value equal to or greater than the resale price. The repurchase agreements
are collateralized by instruments such as U.S. Treasury, federal agency,
or high-grade corporate obligations. There could be potential loss to a
Fund in the event that such Fund is delayed or prevented from exercising
its rights to dispose of the collateral, including the risk of a possible
decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
SECURITY LOANS
The Fund(s) may loan securities in return for securities and cash
collateral, which is invested in various short-term fixed income
securities. A Fund may receive compensation for lending securities in the
form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to
receive interest or dividends on the securities loaned. Security loans are
secured at all times by collateral. The collateral is equal to at least
102% of the market value of the securities loaned plus accrued interest
when the transaction is entered into. If the collateral falls to 100%, it
will be brought back to 102%. Gain or loss in the market price of the
securities loaned that may occur during the term of the loan are reflected
in the value of the Fund. The risks from securities lending are that the
borrower may not provide additional collateral when required or return the
securities when due or when called for by the Fund. Wells Fargo Bank,
N.A., the Funds' custodian, acts as the securities lending agent for the
Funds and receives for its services 40% of the revenues earned on the
securities lending activities and incurs all expenses. The value of the
securities on loan and the value of the related collateral at March 31,
2004 are shown on the Statement of Assets and Liabilities.
At March 31, 2004, cash collateral was invested as follows:
Repurchase Short-Term Mid-Term Money
Fund Agreements Securities Securities Market Fund Total
DISCIPLINED GROWTH PORTFOLIO 20% 72% 5% 3% 100%
EQUITY INCOME PORTFOLIO 31% 48% 19% 2% 100%
INDEX PORTFOLIO 20% 66% 12% 2% 100%
INTERNATIONAL EQUITY PORTFOLIO 25% 64% 7% 4% 100%
LARGE CAP APPRECIATION PORTFOLIO 18% 76% 4% 2% 100%
LARGE CAP VALUE PORTFOLIO 15% 66% 17% 2% 100%
LARGE COMPANY GROWTH PORTFOLIO 19% 58% 20% 3% 100%
SMALL CAP INDEX PORTFOLIO 25% 65% 6% 4% 100%
SMALL COMPANY GROWTH PORTFOLIO 25% 62% 11% 2% 100%
SMALL COMPANY VALUE PORTFOLIO 23% 66% 8% 3% 100%
152
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
3. EXPENSES
- ---------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo
Funds Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and, if applicable, for
supervising the sub-adviser responsible for day-to-day portfolio
management.
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. The fees related to sub-advisory services are borne directly
by the adviser and do not increase the overall fees paid by a Fund to the
adviser. Funds Management and the investment sub-adviser(s) are entitled
to be paid a monthly fee at the following annual rates:
Sub-Advisory
Advisory Fees Fees (% of
(% of Average Average Daily Average Daily
Portfolio Daily Net Assets) Sub-Adviser Net Assets Net Assets)
DISCIPLINED GROWTH PORTFOLIO 0.75 Smith Asset Management $0 - $200 million 0.30
$200 - $500 million 0.20
> $500 million 0.15
EQUITY INCOME PORTFOLIO 0.75 Wells Capital Management $0 - $200 million 0.25
$200 - $400 million 0.20
> $400 million 0.15
INDEX PORTFOLIO 0.15 Wells Capital Management $0 - $200 million 0.02
> $200 million 0.01
INTERNATIONAL EQUITY PORTFOLIO 1.00 Wells Capital Management $0 - $200 million 0.35
> $200 million 0.25
LARGE CAP APPRECIATION 0.70 Cadence Capital Management $0 - $250 million 0.30
PORTFOLIO $250 - $500 million 0.20
$500 million - $1 billion 0.15
> $1 billion 0.10
LARGE CAP VALUE PORTFOLIO 0.75 Systematic Financial $0 - $150 million 0.30
Management $150 - $350 million 0.20
$350 - $750 million 0.15
$750 million -$1 billion 0.13
> $1 billion 0.10
LARGE COMPANY GROWTH PORTFOLIO 0.75 Peregrine Capital Management $0 - $25 million 0.75
$25 - $50 million 0.60
$50 - $275 million 0.50
> $275 million 0.30
OVERSEAS PORTFOLIO 1.00 LSV Asset Management $0 - $150 million 0.35
$150 - $500 million 0.40
$500 - $750 million 0.35
$750 million -$1 billion 0.325
> $1 billion 0.30
SMALL CAP INDEX PORTFOLIO 0.25 Wells Capital Management $0 - $200 million 0.02
> $200 million 0.01
SMALL COMPANY GROWTH PORTFOLIO 0.90 Peregrine Capital Management $0 - $50 million 0.90
$50 - $180 million 0.75
$180 - $340 million 0.65
$340 - $685 million 0.50
$685 - $735 million 0.52
> $735 million 0.55
SMALL COMPANY VALUE PORTFOLIO 0.90 Peregrine Capital Management $0 - $175 million 0.50
> $175 million 0.75
ADMINISTRATION AND TRANSFER AGENT FEES
Currently, there are no administration or transfer agency fees charged to
the Master Trust.
153
WELLS FARGO MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A.
("WFB"), whereby WFB is responsible for providing custody services.
Pursuant to the contract, WFB is entitled to certain transaction charges
plus a monthly fee for custody services at the following annual rates:
Fund % of Average Daily Net Assets
INTERNATIONAL EQUITY PORTFOLIO 0.10%
OVERSEAS PORTFOLIO 0.10%
ALL OTHER FUNDS 0.02%
OTHER FEES
PFPC Inc. ("PFPC") serves as fund accountant. PFPC currently does
not receive a fee for its services, but is entitled to be reimbursed for
all out-of-pocket expenses reasonably incurred in providing these
services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the
Statement of Operations, for the six months ended March 31, 2004, were
waived by Funds Management, first from advisory fees, and then any
remaining amount consecutively from administration, custody and
shareholder servicing fees collected, if any.
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 the six months ended March 31, 2004, were as follows:
Portfolio Purchases at Cost Sales Proceeds
DISCIPLINED GROWTH PORTFOLIO $163,444,936 $ 69,523,733
EQUITY INCOME PORTFOLIO 151,739,961 313,196,485
INDEX PORTFOLIO 117,134,211 22,487,826
INTERNATIONAL EQUITY PORTFOLIO 95,947,012 278,150,055
LARGE CAP APPRECIATION PORTFOLIO 78,120,373 77,625,379
LARGE CAP VALUE PORTFOLIO 129,868,420 129,157,664
LARGE COMPANY GROWTH PORTFOLIO 451,548,812 289,752,626
OVERSEAS PORTFOLIO 148,610,735 16,967,680
SMALL CAP INDEX PORTFOLIO 58,587,235 20,841,239
SMALL COMPANY GROWTH PORTFOLIO 602,373,920 587,022,856
SMALL COMPANY VALUE PORTFOLIO 119,178,715 82,643,381
154
OTHER INFORMATION (UNAUDITED) WELLS FARGO MASTER PORTFOLIOS
- --------------------------------------------------------------------------------
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.
BOARD OF TRUSTEES
The following table provides basic information about the Board of
Trustees ("Trustees") of the Wells Fargo Master Trust (the "Trust").
This table 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 Funds Trust and
Wells Fargo Variable 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 since 1992 Retired. Director, Federal Farm None
72 Credit Banks Funding Corporation
and Farm Credit System Financial
Assistance Corporation until
February 1999.
- ----------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee since 1987 Private Investor/Real Estate None
59 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 since 1987 Wake Forest University, None
61 Calloway School of Business
and Accountancy, Benson-Pruitt
Professorship since 1999,
Associate Professor of Finance
1994 - 1999.
- ----------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee since 1998 Chairman, CEO, and Co- None
61 (Lead Trustee since Founder of Crystal Geyser
2001) Water Company and President
of Crystal Geyser Roxane Water
Company.
- ----------------------------------------------------------------------------------------------------
Richard M. Leach Trustee since 1987 Retired. Prior thereto, President None
70 of Richard M. Leach Associates
(a financial consulting firm).
- ----------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee since 1996 Senior Counselor to the public None
52 relations firm of Himle-Horner
and Senior Fellow at the
Humphrey Institute,
Minneapolis, Minnesota (a
public policy organization).
- ----------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee since 1996 Principal in the law firm of None
63 Willeke & Daniels.
- ----------------------------------------------------------------------------------------------------
155
WELLS FARGO MASTER PORTFOLIOS 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 2003 Executive Vice President of None
45 Wells 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 2001 to 2003. Vice
President of Wells Fargo Bank,
N.A. from 1997 to 2000.
- ----------------------------------------------------------------------------------------------------
Stacie D. DeAngelo Treasurer, since 2003 Senior Vice President of Wells None
35 Fargo Bank, N.A. Senior 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 Senior Vice President and None
43 Counsel of Wells Fargo Bank,
N.A. Senior Vice President and
Secretary of Wells Fargo Funds
Management, LLC. Vice
President and Counsel of Wells
Fargo Bank, N.A. since 1996.
- ----------------------------------------------------------------------------------------------------
* 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.
156
LIST OF ABBREVIATIONS WELLS FARGO ASSET ALLOCATION FUNDS
- --------------------------------------------------------------------------------
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
157
THIS PAGE IS INTENTIONALLY LEFT BLANK --
MORE INFORMATION ABOUT WELLS FARGO FUNDS(R) 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 OR
VISIT OUR WEB SITE AT WWW.WELLSFARGOFUNDS.COM.
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
- --------------------------------------------------------------------------------
(C)2004 Wells Fargo Funds Management, LLC. All rights reserved. SAR 002 (05/04)
[LOGO] WELLS
FARGO
FUNDS
[GRAPHIC OMITTED]
WELLS FARGO OVERSEAS FUND
SEMI-ANNUAL REPORT
WELLS FARGO OVERSEAS FUND(SM)
March 31, 2004
WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Letter to Shareholders ................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Wells Fargo Overseas Fund ............................................. 2
Portfolio of Investments
- --------------------------------------------------------------------------------
Wells Fargo Overseas Fund ............................................. 4
Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities ................................... 5
Statement of Operations ............................................... 6
Statement of Changes in Net Assets .................................... 7
Financial Highlights .................................................. 8
Notes to Financial Statements ............................................ 10
- --------------------------------------------------------------------------------
Master Portfolio
Portfolio of Investments
- --------------------------------------------------------------------------------
Wells Fargo Overseas Portfolio ........................................ 13
Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities ................................... 18
Statement of Operations ............................................... 19
Statement of Changes in Net Assets .................................... 20
Financial Highlights .................................................. 21
Notes to Financial Statements ............................................ 22
- --------------------------------------------------------------------------------
Other Information ........................................................ 24
- --------------------------------------------------------------------------------
List of Abbreviations .................................................... 26
- --------------------------------------------------------------------------------
-------------------------------------------------
NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE
-------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
SHAREHOLDER LETTER WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
We are pleased to provide you with this Wells Fargo Overseas Fund
semi-annual report for the five-month period ended March 31, 2004. The Fund
commenced operations on October 31, 2003, and thus, only has five months of
performance to report. On the following pages, you will find a discussion of the
Fund, including performance highlights, the Fund managers' strategic outlook and
facts and figures about the Fund's portfolio.
THE GLOBAL ECONOMY: A MODERATE RECOVERY CONTINUED
- --------------------------------------------------------------------------------
Corporate profits continued to recover throughout many important sectors
during the period, pointing the way to higher capital spending and further
profit expansion. After several years of slow growth, further demand from China
and the economic improvements in the U.S., Japan and Europe are driving global
growth. Within that scenario, companies are benefiting from stronger consumer
spending, higher capital spending and exports to high-growth economies. The
Japanese financial sector, in particular, performed well, as corporate
restructuring and ties to the economic growth led to strong stock gains.
The economy continued to strengthen in the United States as well. Strong
consumer spending and positive performance by the housing and manufacturing
sectors supported the expansion and helped counter the lack of job creation.
Increased tax refunds and gains in household wealth from the past year's stock
market rally also helped bolster consumer spending. Lower mortgage rates made
housing more affordable and increased household cash flow. Finally, domestic
spending, solid growth of exports amid the improvements in the global economy,
and the weaker dollar's positive impact on U.S. competitiveness helped the
manufacturing sector.
The Federal Reserve Board (the Fed) kept short-term interest rates at 1%
during the period, the lowest level in more than 45 years. The Fed maintained
the low rates as the economy continued to experience a moderate, jobless
recovery and little threat of inflation. Business confidence likewise improved
and corporate earnings continued to grow, signaling an increase in capital
spending and the possibility of employment growth by the end of the period.
Unfortunately, this initial optimism dimmed by the end of the period, as
concerns over disappointing job gains put somewhat of a damper on the stock
market.
LOOKING AHEAD: CONTINUING GROWTH?
- --------------------------------------------------------------------------------
Many countries will be going to the polls sometime over the next several
months, an occurrence that rarely fails to impact equity prices in both
developed and emerging markets. However, strong basic materials demand, higher
energy prices and continued improvement in capital spending, evidenced by
improved performance for the information technology and telecommunications
sectors, could carry global markets' momentum throughout the remainder of 2004.
During all market conditions, we believe successful investing includes
taking a balanced approach, maintaining a portfolio that is diversified among
stocks and bonds, and keeping a long-term perspective. While diversification may
not prevent losses in a market downturn, it may help reduce them and keep you on
track to reach your financial goals. You may wish to review your portfolio with
an investment professional.
Thank you for choosing WELLS FARGO FUNDS. We appreciate your confidence in
us. Through each market cycle, we are committed to helping you meet your
financial needs. If you have any questions about your investment, 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
WELLS FARGO OVERSEAS FUND PERFORMANCE AT A GLANCE
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The Wells Fargo Overseas Fund (the Fund) seeks long-term capital
appreciation.
ADVISER SUB-ADVISER
Wells Fargo Funds Management, LLC LSV Asset Management
FUND MANAGERS INCEPTION DATE
Josef Lakonishok 10/31/03
Robert W. Vishny
Menno Vermeulen
HOW DID THE FUND PERFORM OVER THE REPORTING PERIOD?
- --------------------------------------------------------------------------------
The Fund's Class A shares returned 16.80%(1) for the five-month period
ended March 31, 2004, excluding sales charges, outperforming the MSCI/EAFE Index
(2), which returned 14.99%. The Fund commenced operations on October 31, 2003
and thus, only has five months of performance to report.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
- --------------------------------------------------------------------------------
We believe that three main factors contributed to the Fund's performance
since inception. Our bias toward deep value stocks had a positive impact, as the
value style was in favor during the period. In addition, our bias toward mid-cap
equities added value as well, as small- and mid-cap companies outperformed their
large-cap counterparts on a global basis. Finally, stock selection enhanced
performance, as the Fund's portfolio was trading at a significant discount to
its benchmark on a price-to-earnings, price-to-book, and price-to-cash flow
basis.
During the reporting period, the Fund holdings that contributed the most
to performance included Japan's Sammy Corporation, a maker of "pachinko"
pinball-style game machines; Caltex Australia Limited, Australia's leading oil
refining and marketing company; and ACOM Co., Ltd., Japan's second-largest
consumer finance company. Holdings that negatively affected performance during
the period included Intracom, Greece's biggest provider of telecommunications
systems; KarstadtQuelle, one of Europe's largest department store and mail order
groups; and GKN, a British engineering firm active in automotive and aerospace.
WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO HOLDINGS DURING THE PERIOD?
- --------------------------------------------------------------------------------
During the period ended March 31, 2004, we purchased: Singer & Friedlander
Group, a British merchant bank providing banking and asset management services;
oil and chemicals group OMV AG, Austria's largest industrial company; and Great
Britain's Shell Transport & Trading. We sold our positions in four Japanese
companies: Mitsui Chemicals, Sankyo Co., Suzuken Co., and Toyota Industries. We
also sold our holdings in three U.K companies: EMI Group plc, BP plc and Lonmin
plc, the world's number-three platinum producer.
The Fund's sector allocations changed only modestly as a result of the
purchases and sales during the period. In addition, the portfolio
characteristics (for example, price-to-earnings, and price-to-cash flow, and
dividend yield) also remained relatively unchanged during the period.
LOOKING AHEAD, WHAT IS YOUR STRATEGIC OUTLOOK?
- --------------------------------------------------------------------------------
We do not maintain a top-down or strategic view of the economy or the
markets. Rather, our investment process focuses on the use of quantitative
techniques to select what we believe are the most attractive individual
securities within each country in the MSCI/EAFE Index, based on a combination of
value and momentum factors.
Investing in foreign securities presents certain risks that may not be
present in domestic securities. For example, investments in foreign and emerging
markets present special risks including currency fluctuation, the potential for
diplomatic and political instability, regulatory and liquidity risks, foreign
taxation and differences in auditing and other financial standards.
- --------------------------------------------------------------------------------
The views expressed are as of March 31, 2004, 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 Overseas Fund.
(1) The Fund's Adviser has committed through January 31,2005 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.
The Fund is a gateway feeder Fund that invests all of its assets in a
single master portfolio of Master Trust with a substantially similar investment
objective and substantially similar investment strategies. References to the
investment activities of the Fund are intended to refer to the investment
activities of the master portfolio in which it invests.
(2) The Morgan Stanley Capital International/Europe, Australasia and Far East
(MSCI/EAFE) Index is an unmanaged group of securities widely regarded by
investors to be representations of the stock markets of Europe, Australasia and
the Far East.You cannot invest directly in an index.
2
PERFORMANCE AT A GLANCE WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1) (%) (as of March 31, 2004)
Including Sales Charge Excluding Sales Charge
------------------------- ------------------------
Life of Fund* Life of Fund*
- ------------------------------------------------------------------------------------------------
Wells Fargo Overseas Fund - Class A 10.08 16.80
- ------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------
MSCI/EAFE Index 14.99
- ------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUND'S WEB SITE -
WWW.WELLSFARGOFUNDS.COM.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. PERFORMANCE
INCLUDING SALES CHARGES ASSUMES THE MAXIMUM SALES CHARGE FOR THE CORRESPONDING
TIME PERIOD.
TEN LARGEST EQUITY HOLDINGS(3,4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Toyota Motor Corporation 2.80%
- --------------------------------------------------------------------------------
UBS AG 2.59%
- --------------------------------------------------------------------------------
Nippon Telegraph & Telephone Corporation 2.17%
- --------------------------------------------------------------------------------
Barclays plc 2.09%
- --------------------------------------------------------------------------------
BNP Paribas SA 2.06%
- --------------------------------------------------------------------------------
Repsol YPF SA 1.72%
- --------------------------------------------------------------------------------
Lloyds TSB Group plc 1.70%
- --------------------------------------------------------------------------------
Compagnie De Saint-Gobain 1.45%
- --------------------------------------------------------------------------------
Endesa SA 1.39%
- --------------------------------------------------------------------------------
Aegon NV 1.37%
- --------------------------------------------------------------------------------
CHARACTERISTICS(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
Beta** 0.81
- --------------------------------------------------------------------------------
Price to Earnings Ratio (trailing 12 months) 14.4x
- --------------------------------------------------------------------------------
Price to Book Ratio 1.6x
- --------------------------------------------------------------------------------
Median Market Cap. ($B) $ 5.2
- --------------------------------------------------------------------------------
Portfolio Turnover 11%
- --------------------------------------------------------------------------------
** A MEASURE OF THE FUND'S SENSITIVITY TO MARKET MOVEMENTS. THE BENCHMARK
BETA IS 1.00 BY DEFINITION.
PORTFOLIO COMPOSITION(4) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Southeast Asia (3%)
Emerging Markets (1%)
Japan (24%)
Australia (5%)
Continental Europe (42%)
United Kingdom (25%)
GROWTH OF $10,000 CHART(5) (AS OF MARCH 31, 2004)
- --------------------------------------------------------------------------------
[PLOT POINTS TO COME]
Wells Fargo Overseas Fund - Class A
MSCI EAFE Index
(3) The ten largest equity holdings are calculated based on the market value of
the Master Trust portfolio securities allocable the Fund to divided by total
market value of the Fund. See Notes to Financial Statements for the discussion
of the Master Trust.
(4) Portfolio holdings and characteristics are subject to change.
(5) The chart compares the performance of the Wells Fargo Overseas Fund Class A
shares for the life of the Fund with the MSCI/EAFE Index. The chart assumes a
hypothetical investment of $10,000 in Class A shares and reflects all operating
expenses and assumes the maximum initial sales charge of 5.75%.
3
WELLS FARGO OVERSEAS FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
FACE/SHARE
AMOUNT SECURITY NAME VALUE
INVESTMENT IN MASTER PORTFOLIOS - 99.86%
N/A WELLS FARGO OVERSEAS PORTFOLIO $18,155
TOTAL INVESTMENT IN MASTER PORTFOLIOS (COST $16,126) 18,155
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $16,126)* 99.86% $18,155
OTHER ASSETS AND LIABILITIES, NET 0.14 26
------ -------
TOTAL NET ASSETS 100.00% $18,181
====== =======
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
4
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2004 (UNAUDITED)
WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
OVERSEAS FUND
- ---------------------------------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .............................................................. $18,155
-------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW) ............................................. 18,155
-------
CASH ........................................................................................ 19,718
RECEIVABLE FROM INVESTMENT ADVISOR AND AFFILIATES ........................................... 6,089
-------
TOTAL ASSETS .................................................................................. 43,962
-------
LIABILITIES
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR ..................................................... 689
ACCRUED EXPENSES AND OTHER LIABILITIES ...................................................... 25,092
TOTAL LIABILITIES ............................................................................. 25,781
-------
TOTAL NET ASSETS .............................................................................. $18,181
=======
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ............................................................................. $15,900
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .................................................. 64
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ....................................... 188
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND TRANSLATION
OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............................... 2,029
-------
TOTAL NET ASSETS .............................................................................. $18,181
-------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ........................................................................ $18,181
SHARES OUTSTANDING - CLASS A ................................................................ 1,557
NET ASSET VALUE PER SHARE - CLASS A ......................................................... $ 11.68
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(1) ............................................... $ 12.39
-------
INVESTMENTS AT COST ........................................................................... $16,126
=======
(1) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENTS OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
5
WELLS FARGO OVERSEAS FUND
STATEMENT OF OPERATIONS -- FOR THE PERIOD ENDED MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS FUND(2)
- ------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ........................................................ $ 153
EXPENSES ALLOCATED FROM AFFILIATED MASTER PORTFOLIOS ................. (47)
--------
TOTAL INVESTMENT INCOME ................................................ 106
--------
EXPENSES
ADMINISTRATION FEES
CLASS A ............................................................ 20
SHAREHOLDER SERVICING FEES ........................................... 15
ACCOUNTING FEES ...................................................... 8,383
AUDIT FEES ........................................................... 6,000
LEGAL FEES ........................................................... 3,914
REGISTRATION FEES .................................................... 3,600
SHAREHOLDER REPORTS .................................................. 10,000
TRUSTEES' FEES ....................................................... 2,400
OTHER FEES AND EXPENSES .............................................. 840
--------
TOTAL EXPENSES ......................................................... 35,172
--------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ......................... (35,130)
NET EXPENSES ......................................................... 42
--------
NET INVESTMENT INCOME (LOSS) ......................................... 64
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 188
--------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS .............................. 188
--------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES TRANSACTIONS ALLOCATED FROM MASTER PORTFOLIOS ............. 2,029
--------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .... 2,029
========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ................. 2,217
--------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........ $ 2,281
========
(1) NET OF FOREIGN WITHHOLDING TAXES OF $15.
(2) FUND COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
6
STATEMENT OF CHANGES IN NET ASSETS WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
(UNAUDITED)
FOR THE
PERIOD ENDED
MARCH 31, 2004(1)
- -----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .............................................................. $ 64
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................... 188
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ....................... 2,029
-------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. 2,281
-------
NET REALIZED GAIN ON SALES OF INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ....................................................... 15,900
-------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ... 15,900
-------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS ............. 15,900
-------
NET INCREASE (DECREASE) IN NET ASSETS ....................................................... 18,181
=======
NET ASSETS:
- -----------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS ........................................................................... $18,181
-------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ..................................................................... 1,557
-------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ..................................... 1,557
-------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 1,557
-------
RENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ...................................... $ 64
=======
(1) FUND COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
7
WELLS FARGO OVERSEAS FUND FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NET REALIZED
BEGINNING NET AND DIVIDENDS
NET ASSET INVESTMENT UNREALIZED FROM NET
VALUE PER INCOME GAIN ON INVESTMENT
SHARE (LOSS) INVESTMENTS INCOME
- ------------------------------------------------------------------------------------------------------------------
OVERSEAS FUND
CLASS A
OCTOBER 31, 2003(3) TO MARCH 31, 2004 (UNAUDITED) .... $10.00 0.04 1.64 0
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 one year are not annualized.
(3) Commencement of operations.
(4) Includes expenses allocated from the Portfolio(s) in which the Fund
invests.
(5) Portfolio turnover rate represents the activity from the Fund's investment
in a single Portfolio.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
FINANCIAL HIGHLIGHTS WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
DIVIDENDS ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
FROM NET NET ASSET ---------------------------------------------------------- PORTFOLIO NET ASSETS AT
REALIZED RETURN OF NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER END OF PERIOD
GAINS CAPITAL INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE (000'S OMITTED)
- ---------------------------------------------------------------------------------------------------------------------------------
0 $11.68 1.08% 590.61%(4) (589.11)%(4) 1.50%(4) 16.80% 11%(5) $18
9
WELLS FARGO OVERSEAS FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 (each, a "Fund",
collectively, the "Funds"). These financial statements present the Overseas
Fund.
The Overseas Fund seeks to achieve its investment objective by investing
all investable assets in one or more separate diversified portfolios (the
"Master Portfolios") of Wells Fargo Master Trust, a registered open-end
management investment company. Each Master Portfolio directly acquires portfolio
securities, and a Fund investing in a Master Portfolio acquires an indirect
interest in those securities. The Fund accounts for its investment in the Master
Portfolio as a partnership investment and records daily its share of the Master
Portfolio's income, expenses, and realized and unrealized gains and losses. The
financial statements of the Master Portfolio are in this report and should be
read in conjunction with the Fund's financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, 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 the Master Portfolios are valued at their net asset value
at the close of business each day. Securities held in the Master Portfolios are
valued as discussed in the Notes to Financial Statements of the Master
Portfolios, which are included elsewhere in this report.
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.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting from changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the
changes in net assets resulting from changes in market prices of securities at
fiscal period-end are not separately presented. Such changes are recorded with
net realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually. For federal income tax purposes,
the Fund(s) may designate as capital gains dividends the earnings and profits
distributed to shareholders on the redemption of fund shares during the year.
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
10
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO OVERSEAS FUND
- --------------------------------------------------------------------------------
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 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 March 31, 2004.
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and, if applicable, for
supervising the sub-adviser responsible for day-to-day portfolio management.
For each Fund of the Trust that invests all of its assets in a single
Master Portfolio, Funds Management does not currently receive investment
advisory fees. Funds Management acts as adviser to the Master Portfolios, and is
entitled to receive fees from the Master Portfolios for those services.
Each Fund of the Trust that invests its assets in one or more of the
Master Portfolios may withdraw its investments from its corresponding Master
Portfolio(s) at any time if the Board of Trustees determines that it is in the
best interest of the Fund to do so. Upon such redemption and subsequent direct
investment in a portfolio of securities, Funds Management (and the corresponding
sub-adviser, if any) may receive an investment advisory fee for the direct
management of those assets.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds
Management. Under this Agreement, for providing administrative services, which
includes paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, 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
FUND LEVEL 0.05%
CLASS A 0.28%
The Trust has entered into an agreement with Boston Financial Data
Services ("BFDS") as the transfer agent for the Trust. BFDS is entitled to
receive fees from the administrator for its services as transfer agent.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby each Fund is charged the following annual fees:
Share Class % of Average Daily Net Assets
CLASS A 0.25%
For the period ended March 31, 2004, shareholder servicing fees paid are
disclosed on the Statement of Operations.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. WFB does not receive
a custodial fee for any Fund that invests its assets solely in one or more
Master Portfolios or other investment companies.
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is
entitled to receive an annual asset based fee, and an annual fixed fee from the
Fund. PFPC is also entitled to be reimbursed for all out-of-pocket expenses
reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement
of Operations, for the period ended March 31, 2004, were waived by Funds
Management, first from advisory fees, and then any remaining amount
consecutively from administration, custody and shareholder servicing fees
collected, if any.
11
WELLS FARGO OVERSEAS FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 the period
ended March 31, 2004, were as follows:
Fund Purchases at Cost Sales Proceeds
OVERSEAS FUND* $14,861 $1,697
* This Fund seeks to achieve its investment objective by investing some or
all of its investable assets in one or more Master Portfolios. Purchases
and sales related to these investments have been calculated by aggregating
the results of multiplying the Fund's ownership percentage of the
respective Master Portfolio by the corresponding Master Portfolio's
purchases and sales.
5. BANK BORROWINGS
- --------------------------------------------------------------------------------
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 period ended March 31, 2004.
12
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCK - 99.22%
AUSTRALIA - 4.51%
312,100 BLUESCOPE STEEL LIMITED (MISCELLANEOUS MANUFACTURING INDUSTRIES) $ 1,501,122
243,100 BORAL LIMITED (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,172,961
195,300 CALTEX AUSTRALIA LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 1,069,063
25,200 NATIONAL AUSTRALIA BANK LIMITED (DEPOSITORY INSTITUTIONS) 596,409
198,700 SEVEN NETWORK LIMITED (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 800,965
561,900 TELSTRA CORPORATION LIMITED (COMMUNICATIONS) 1,947,586
7,088,106
-----------
AUSTRIA - 0.46%
3,800 OMV AG (OIL & GAS EXTRACTION) 719,149
-----------
BELGIUM - 0.84%
22,700 KBC BANK VERZEKERINGS HOLDINGS (DEPOSITORY INSTITUTIONS) 1,327,844
-----------
DENMARK - 1.02%
15,900 BANG AND OLUFSEN AS (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 842,471
16,800 DANSKE BANK (DEPOSITORY INSTITUTIONS) 379,912
10,600 TDS AS (COMMUNICATIONS) 386,679
1,609,062
-----------
FINLAND - 1.84%
37,400 FORTUM OYJ (ELECTRIC, GAS & SANITARY SERVICES) 382,392
88,100 KEMIRA OYJ (CHEMICALS & ALLIED PRODUCTS) 1,175,764
38,500 KESKO OYJ (FOOD STORES) 676,568
71,100 M-REAL OYJ (PAPER & ALLIED PRODUCTS) 659,676
2,894,400
-----------
FRANCE - 9.45%
6,753 ASSURANCES GENERALES DE FRANCE (INSURANCE CARRIERS) 419,085
52,800 BNP PARIBAS SA (DEPOSITORY INSTITUTIONS) 3,226,760
7,600 CNP ASSURANCES (INSURANCE AGENTS, BROKERS & SERVICE) 438,961
44,900 COMPAGNIE DE SAINT-GOBAIN (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 2,268,340
7,000 IMERYS SA (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,666,257
13,700 RALLYE SA (GENERAL MERCHANDISE STORES) 798,861
24,100 RENAULT SA (TRANSPORTATION EQUIPMENT) 1,668,881
24,300 SOCIETE GENERALE (DEPOSITORY INSTITUTIONS) 2,075,417
5,300 TOTAL SA (OIL & GAS EXTRACTION) 973,063
31,800 VALEO SA (TRANSPORTATION EQUIPMENT) 1,319,301
14,854,926
-----------
GERMANY - 6.57%
76,700 BAYER AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 1,867,214
13,335 E.ON AG (ELECTRIC, GAS & SANITARY SERVICES) 878,359
11,500 FRESENIUS AG (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL) 805,399
43,163 IKB DEUTSCHE INDUSTRIEBANK AG (DEPOSITORY INSTITUTIONS) 1,047,594
48,700 KARSTADTQUELLE AG (GENERAL MERCHANDISE STORES) 1,076,051
44,500 MAN AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 1,585,888
13
WELLS FARGO MASTER PORTFOLIO
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
GERMANY (continued)
99,900 THYSSENKRUPP AG (PRIMARY METAL INDUSTRIES) $ 1,856,229
53,300 TUI AG (TRANSPORTATION BY AIR) 1,215,026
10,331,760
-----------
GREECE - 0.31%
89,000 INTRACOM SA (COMMUNICATIONS) 489,984
-----------
HONG KONG - 1.17%
336,000 CITIC PACIFIC LIMITED (MISCELLANEOUS RETAIL) 948,775
2,085,000 CNOOC LIMITED (OIL & GAS EXTRACTION) + 889,813
1,838,588
-----------
IRELAND - 0.92%
88,600 IRISH LIFE AND PERMANENT PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,452,459
-----------
ITALY - 3.93%
68,400 BANCA POPOLARE DI MILANO SCRL (DEPOSITORY INSTITUTIONS) 397,587
553,000 CASSA DI RISPARMIO DI FIRENZ SPA (DEPOSITORY INSTITUTIONS) 992,184
537,300 COMPAGNIE INDUSTRIALI RIUNITE (PRINTING, PUBLISHING & ALLIED INDUSTRIES) 1,039,948
142,300 CREDITO EMILIANO SPA (DEPOSITORY INSTITUTIONS) 989,773
60,395 ENI SPA (OIL & GAS EXTRACTION) 1,214,224
169,000 ERG SPA (PETROLEUM REFINING & RELATED INDUSTRIES) 888,883
36,940 RIUNIONE ADRIATICA SI SICURTA SPA (INSURANCE CARRIERS) 660,502
6,183,101
-----------
JAPAN - 23.72%
14,100 ACOM COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,030,038
139,500 ASAHI BREWERIES LIMITED (FOOD & KINDRED PRODUCTS) 1,618,460
32,200 COCA-COLA WEST JAPAN COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 823,300
69,700 DAIICHI PHARMACEUTICAL COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL) 1,353,333
20,500 DENSO CORPORATION (TRANSPORTATION EQUIPMENT) 467,006
59,700 HITACHI CAPITAL CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,126,458
31,600 HITACHI MAXELL LIMIED (MISCELLANEOUS MANUFACTURING INDUSTRIES) 490,850
24,600 HONDA MOTOR COMPANY LIMITED (TRANSPORTATION EQUIPMENT) 1,135,003
88,500 KANSAI ELECTRIC POWER COMPANY INCORPORATED (ELECTRIC, GAS & SANITARY SERVICES) 1,674,980
70,000 KIRIN BREWERY COMPANY LIMITED (FOOD & KINDRED PRODUCTS) 755,611
23,000 KISSEI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 499,640
52,000 MAKITA CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT) 669,275
719,000 MARUBENI CORPORATION (BUSINESS SERVICES) 1,955,851
474,000 MITSUBISHI CHEMICAL CORPORATION (CHEMICALS & ALLIED PRODUCTS) 1,448,859
96,200 NIHON UNISYS LIMITED (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 814,651
600 NIPPON TELEGRAPH & TELEPHONE CORPORATION (COMMUNICATIONS) 3,402,701
75,600 NISSAN MOTOR COMPANY LIMITED (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 846,580
27,600 PROMISE COMPANY LIMITED (NON-DEPOSITORY CREDIT INSTITUTIONS) 1,896,862
44,500 RYOSAN COMPANY LIMITED (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 975,249
39,450 SAMMY CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 1,520,589
63,700 SANTEN PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,065,391
14
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
JAPAN (continued)
42,800 SHOWA SHELL SEKIYU KK (PETROLEUM REFINING & RELATED INDUSTRIES) $ 382,191
41,000 TAISHO PHARMACEUTICAL COMPANY LIMITED (MEASURING, ANALYZING & CONTROLLING INSTRUMENTS:
PHOTOGRAPHIC, MEDICAL & OPTICAL) 792,137
13,100 TAKEFUJI CORPORATION (NON-DEPOSITORY CREDIT INSTITUTIONS) 912,914
135,000 TANABE SEIYAKU COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,356,034
265,000 TOHO GAS COMPANY LIMITED (PETROLEUM REFINING & RELATED INDUSTRIES) 967,943
220,000 TOSHIBA TEC CORPORATION (ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT) 1,034,075
19,000 TOSTEM INAX HOLDING CORPORATION (MISCELLANEOUS MANUFACTURING INDUSTRIES) 420,051
117,500 TOYOTA MOTOR CORPORATION (AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS) 4,382,179
42,900 YAMANOUCHI PHARMACEUTICAL COMPANY LIMITED (CHEMICALS & ALLIED PRODUCTS) 1,476,253
37,294,464
-----------
NETHERLANDS - 4.13%
47,500 ABN AMRO HOLDINGS NV (DEPOSITORY INSTITUTIONS) + 1,059,460
167,800 AEGON NV (INSURANCE CARRIERS) + 2,144,567
61,800 ING GROEP NV (FINANCIAL SERVICES) 1,357,908
44,200 OCE NV (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 753,378
25,000 ROYAL DUTCH PETROLEUM COMPANY (PETROLEUM REFINING & RELATED INDUSTRIES) 1,187,419
6,502,732
-----------
NORWAY - 0.78%
75,600 DEN NORSKE BANK ASA (DEPOSITORY INSTITUTIONS) 495,496
10,420 NORSK HYDRO ASA (OIL & GAS EXTRACTION) 655,628
10,420 YARA INTERNATIONAL ASA (AGRICULTURAL SERVICES) + 75,579
1,226,703
-----------
PORTUGAL - 0.43%
272,700 BANCO COMERCIAL PORTUGUES SA (DEPOSITORY INSTITUTIONS) 673,590
-----------
SINGAPORE - 1.48%
128,000 FRASER & NEAVE LIMITED (FOOD & KINDRED PRODUCTS) 1,114,869
101,500 JARDINE STRATEGIC HOLDINGS (DEPOSITORY INSTITUTIONS) 501,410
508,900 SINGAPORE TELECOMMUNICATIONS LIMITED (COMMUNICATIONS) 707,375
2,323,654
-----------
SPAIN - 3.44%
119,800 ENDESA SA (ELECTRIC, GAS & SANITARY SERVICES) 2,178,878
168,900 IBERIA LINEAS AEREAS DE ESPANA SA (TRANSPORTATION BY AIR) 550,034
129,600 REPSOL YPF SA (OIL & GAS EXTRACTION) 2,685,202
5,414,114
-----------
SWEDEN - 2.20%
25,900 FORENINGSSPARBANKEN AB (DEPOSITORY INSTITUTIONS) 480,819
301,900 NORDEA AB (DEPOSITORY INSTITUTIONS) 2,061,694
62,390 SKANDINAVISKA ENSKILDA BANKEN AB (DEPOSITORY INSTITUTIONS) 914,178
3,456,691
-----------
15
WELLS FARGO MASTER PORTFOLIO
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SWITZERLAND - 6.92%
8,600 CONVERIUM HOLDING AG (INSURANCE CARRIERS) $ 420,886
12,300 LONZA GROUP AG (CHEMICALS & ALLIED PRODUCTS) 627,695
2,115 RIETER HOLDING AG (CHEMICALS & ALLIED PRODUCTS) 534,239
20,600 SAURER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) + 907,353
2,900 SULZER AG (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 721,080
6,200 SWISSCOM AG (COMMUNICATIONS) 2,035,916
54,500 UBS AG (FINANCIAL SERVICES) 4,048,190
3,100 VALORA HOLDING AG (GENERAL MERCHANDISE STORES) 767,139
38,600 VONTOBEL HOLDINGS AG (DEPOSITORY INSTITUTIONS) 822,670
10,885,168
-----------
UNITED KINGDOM - 25.10%
78,300 ALLIANCE & LEICESTER PLC (DEPOSITORY INSTITUTIONS) 1,257,727
134,200 ARRIVA PLC (TRANSPORTATION BY AIR) 931,687
82,714 AVIVA PLC (INSURANCE CARRIERS) 802,650
371,100 BARCLAYS PLC (DEPOSITORY INSTITUTIONS) 3,268,633
97,900 BARRATT DEVELOPMENTS PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,119,145
209,400 BBA GROUP PLC (INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT) 980,402
62,400 BERKELEY GROUP PLC (PRIVATE HOUSEHOLDS) 1,206,461
385,300 BIG FOOD GROUP PLC (FOOD STORES) 984,299
17,000 BOOTS GROUP PLC (GENERAL MERCHANDISE STORES) 193,555
164,400 BRADFORD & BINGLEY PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 891,327
167,300 BRITISH VITA PLC (CHEMICALS & ALLIED PRODUCTS) 808,658
479,687 BT GROUP PLC (COMMUNICATIONS) 1,560,430
94,200 DAVIS SERVICE GROUP PLC (BUSINESS SERVICES) 642,300
529,200 DIXONS GROUP PLC (GENERAL MERCHANDISE STORES) 1,497,800
211,300 DS SMITH PLC (PAPER & ALLIED PRODUCTS) 652,412
78,400 FIRSTGROUP PLC (TRANSPORTATION SERVICES) 386,517
126,850 GEORGE WIMPEY PLC (BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS) 1,019,957
254,200 GKL PLC (TRANSPORTATION EQUIPMENT) 1,124,747
184,700 HANSON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,418,915
37,300 HBOS PLC (DEPOSITORY INSTITUTIONS) 505,916
354,100 J SAINSBURY PLC (FOOD & KINDRED PRODUCTS) + 1,696,928
172,200 JJB SPORTS PLC (APPAREL & ACCESSORY STORES) 1,015,901
58,000 KELDA GROUP PLC (ELECTRIC, GAS & SANITARY SERVICES) 480,482
350,000 LLOYDS TSB GROUP PLC (DEPOSITORY INSTITUTIONS) 2,659,847
237,100 NORTHERN FOODS PLC (FOOD & KINDRED PRODUCTS) 701,569
676,500 OLD MUTUAL PLC (INSURANCE CARRIERS) 1,255,747
688,900 PILKINGTON PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,133,163
112,900 RMC GROUP PLC (STONE, CLAY, GLASS & CONCRETE PRODUCTS) 1,306,179
402,200 ROLLS ROYCE GROUP CLASS (TRANSPORTATION EQUIPMENT) + 36,959
402,200 ROLLS ROYCE GROUP PLC (TRANSPORTATION EQUIPMENT) 1,663,174
231,200 SCOTTISH POWER PLC (ELECTRIC, GAS & SANITARY SERVICES) 1,617,860
45,800 SEVERN TRENT PLC (WATER TRANSPORTATION) 640,565
224,400 SHELL TRANSPORT & TRADING COMPANY PLC (OIL & GAS EXTRACTION) 1,466,140
144,800 SINGER & FRIEDLANDER GROUP PLC (NON-DEPOSITORY CREDIT INSTITUTIONS) 634,037
16
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2004 (UNAUDITED)
WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
WELLS FARGO OVERSEAS PORTFOLIO
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
UNITED KINGDOM (continued)
88,700 UNITED UTILITIES PLC (ELECTRIC, GAS & SANITARY SERVICES) $ 846,066
68,700 WOLVERHAMPTON & DUDLEY BREWERIES PLC (FOOD & KINDRED PRODUCTS) 1,063,750
39,471,905
------------
TOTAL COMMON STOCK (COST $134,235,543) 156,038,400
------------
COLLATERAL FOR SECURITIES LENDING - 4.9%
COLLATERAL FOR SECURITY LENDING 7,702,520
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $7,702,520) 7,702,520
------------
SHORT-TERM INVESTMENTS - 0.28%
431,711 WELLS FARGO MONEY MARKET TRUST ~ 431,711
------------
TOTAL SHORT-TERM INVESTMENTS (COST $431,711) 431,711
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $142,369,774)* 104.40% $164,172,631
OTHER ASSETS AND LIABILITIES, NET (4.40) (6,914,626)
------ ------------
TOTAL NET ASSETS 100.00% $157,258,005
====== ============
+ NON-INCOME EARNING 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
17
WELLS FARGO MASTER PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES -- MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
- -------------------------------------------------------------------------------------
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ............................. $156,038,400
COLLATERAL FOR SECURITIES LOANED (NOTE 2) .................. 7,702,520
INVESTMENTS IN AFFILIATES .................................. 431,711
------------
TOTAL INVESTMENT AT MARKET VALUE (SEE COST BELOW)............. 164,172,631
------------
RECEIVABLES FOR DIVIDENDS AND INTEREST ..................... 889,851
PREPAID EXPENSES AND OTHER ASSETS .......................... 1,225
------------
TOTAL ASSETS ................................................. 165,063,707
------------
LIABILITIES
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ...... 102,382
PAYABLE TO THE TRUSTEES AND DISTRIBUTOR .................... 800
PAYABLE FOR SECURITIES LOANED (NOTE 2) ..................... 7,702,520
TOTAL LIABILITIES ............................................ 7,805,702
------------
TOTAL NET ASSETS ............................................. $157,258,005
============
INVESTMENTS AT COST .......................................... $142,369,774
============
SECURITIES ON LOAN, AT MARKET VALUE .......................... $ 7,513,455
============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
18
STATEMENT OF OPERATIONS --
FOR THE PERIOD ENDED MARCH 31, 2004 (UNAUDITED) WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
OVERSEAS PORTFOLIO(2)
- ----------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS (1) ...................................................... $ 1,423,910
INTEREST ........................................................... 9,723
INCOME FROM AFFILIATED SECURITIES .................................. 10,517
SECURITIES LENDING INCOME .......................................... 2,396
------------
TOTAL INVESTMENT INCOME .............................................. 1,446,546
------------
EXPENSES
ADVISORY FEES ...................................................... 611,329
CUSTODY FEES ....................................................... 61,000
AUDIT FEES ......................................................... 5,031
TRUSTEES' FEES ..................................................... 2,515
OTHER FEES AND EXPENSES ............................................ 831
------------
TOTAL EXPENSES ....................................................... 680,706
------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ....................... (210,159)
NET EXPENSES ....................................................... 470,547
------------
NET INVESTMENT INCOME (LOSS) ......................................... 975,999
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ----------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 2,355,691
------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................ 2,355,691
------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .... 21,810,624
------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .. 21,810,624
============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............... 24,166,315
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 25,142,314
============
(1) NET OF FOREIGN WITHHOLDING TAXES OF $150,557.
(2) PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
19
WELLS FARGO MASTER PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
(UNAUDITED) FOR
PERIOD ENDED
MARCH 31, 2004(1)
- -----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ................................................ $ 975,999
NET REALIZED GAIN (LOSS) ON INVESTMENTS ..................................... 2,355,691
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......... 21,810,624
-------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 25,142,314
-------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
CONTRIBUTIONS ............................................................... 149,935,964
WITHDRAWALS ................................................................. (17,820,273)
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS .. 132,115,691
-------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................... 157,258,005
=============
ENDING NET ASSETS ............................................................. $ 157,258,005
-------------
(1) PORTFOLIO COMMENCED OPERATIONS ON OCTOBER 31, 2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
20
FINANCIAL HIGHLIGHTS WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
---------------------------------------------------- PORTFOLIO
NET INVESTMENT GROSS EXPENSES NET TOTAL TURNOVER
INCOME (LOSS) EXPENSES WAIVED EXPENSES RETURN(2) RATE
- ---------------------------------------------------------------------------------------------------------------------------------
OVERSEAS PORTFOLIO
CLASS A
OCTOBER 31, 2003(3) TO MARCH 31, 2004 (UNAUDITED).. 1.60% 1.12% (0.35)% 0.77% 17.00% 11%
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 one year are not annualized.
(3) Commencement of operations.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
21
WELLS FARGO MASTER PORTFOLIO NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
- --------------------------------------------------------------------------------
Wells Fargo Master Trust (the "Trust") is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust currently has 16 separate investment
portfolios (each a "Fund" and collectively, the "Funds"). These financial
statements present the Overseas Portfolio.
Interests in the Funds are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, 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.
Securities denominated in foreign currencies are translated into U.S.
dollars using the closing rates of exchange in effect on the day of valuation.
If trading or events occurring in other markets after the close of the principal
exchange in which the foreign investments are traded are expected to materially
affect the value of the investments, then those investments are fair valued
following procedures approved by the Trustees.
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.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FEDERAL INCOME TAXES
Each Fund of the Trust is treated as a separate entity for federal income
tax purposes. The Funds of the Trust are not required to pay federal income
taxes on their net investment income and net capital gain as they are treated as
partnerships for federal income tax purposes. All interest, dividends, gains and
losses of a Fund is deemed to have been "passed through" to the interestholders
in proportion to their holdings of the Fund regardless of whether such interest,
dividends, or gains have been distributed by the Fund.
REPURCHASE AGREEMENTS
The Fund(s) may invest in repurchase agreements and may participate in
pooled repurchase agreement transactions with other Portfolios advised by Wells
Fargo Funds Management, LLC. The repurchase agreements must be fully
collateralized based on values that are marked to market daily. The collateral
may be held by an agent bank under a tri-party agreement. It is the custodian's
responsibility to value collateral daily and to take action to obtain additional
collateral as necessary to maintain market value equal to or greater than the
resale price. The repurchase agreements are collateralized by instruments such
as U.S. Treasury, federal agency, or high-grade corporate obligations. There
could be potential loss to a Portfolio in the event that such Portfolio is
delayed or prevented from exercising its rights to dispose of the collateral,
including the risk of a possible decline in the value of the underlying
obligations during the period in which a Portfolio seeks to assert its rights.
22
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
SECURITY LOANS
The Fund(s) may loan securities in return for securities and cash
collateral, which is invested in various short-term fixed income securities. A
Fund may receive compensation for lending securities in the form of fees or by
retaining a portion of interest on the investment securities or cash received as
collateral. A Fund also continues to receive interest or dividends on the
securities loaned. Security loans are secured at all times by collateral. The
collateral is equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered into. If the
collateral falls to 100%, it will be brought back to 102%. Gain or loss in the
market price of the securities loaned that may occur during the term of the loan
are reflected in the value of the Fund. The risks from securities lending are
that the borrower may not provide additional collateral when required or return
the securities when due or when called for by the Fund. Wells Fargo Bank, N.A.,
the Funds' custodian, acts as the securities lending agent for the Funds and
receives for its services 40% of the revenues earned on the securities lending
activities and incurs all expenses. The value of the securities on loan and the
value of the related collateral at March 31, 2004 are shown on the Statement of
Assets and Liabilities.
At March 31, 2004, cash collateral was invested as follows:
Money
Repurchase Short-Term Mid-Term Market
Fund Agreements Securities Securities Fund Total
OVERSEAS PORTFOLIO 0% 0% 0% 100% 100%
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). The adviser is responsible for
implementing investment policies and guidelines and, if applicable, for
supervising the sub-adviser responsible for day-to-day portfolio management.
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. The fees related to sub-advisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment sub-adviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Advisory Fees Sub-Advisory Fees
(% of Average Average Daily (% of Average
Fund Daily Net Assets) Sub-Adviser Net Assets Daily Net Assets)
OVERSEAS PORTFOLIO 1.00 LSV Asset Management $0 - 150 million 0.35%
$150 - 500 million 0.40%
$500 - 750 million 0.35%
$750 - 1 billion 0.325%
> $ 1 billion 0.30%
ADMINISTRATION AND TRANSFER AGENT FEES
Currently, there are no administration or transfer agency fees charged to
the Master Trust.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to certain transaction charges plus a monthly fee for
custody services at the following rates:
Fund % Of Average Daily Net Assets
OVERSEAS PORTFOLIO 0.10%
OTHER FEES
PFPC Inc. ("PFPC") serves as fund accountant. PFPC currently does not
receive a fee for its services, but is entitled to be reimbursed for all
out-of-pocket expenses reasonably incurred in providing these services.
WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement
of Operations, for the period ended March 31, 2004, were waived by Funds
Management, first from advisory fees, and then any remaining amount
consecutively from administration, custody and shareholder servicing fees
collected, if any.
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 the period
ended March 31, 2004, were as follows:
Fund Purchases at Cost Sales Proceeds
OVERSEAS PORTFOLIO $148,610,735 $16,967,680
23
WELLS FARGO MASTER PORTFOLIO OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
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 Master Trust (the "Trust"). This table
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 16 funds comprising the
Trust, Wells Fargo Funds Trust and Wells Fargo Variable 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 since 1992 Retired. Director, Federal Farm None
72 Credit Banks Funding
Corporation and Farm Credit
System Financial Assistance
Corporation until February
1999.
- --------------------------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee since 1987 Private Investor/Real Estate None
59 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 since 1987 Wake Forest University, None
61 Calloway School of Business
and Accountancy, Benson-Pruitt
Professorship since 1999,
Associate Professor of Finance
1994 - 1999.
- --------------------------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee since 1998 Chairman, CEO, and Co- None
61 (Lead Trustee since Founder of Crystal Geyser
2001) Water Company and President
of Crystal Geyser Roxane Water
Company.
- --------------------------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee since 1987 Retired. Prior thereto, President None
70 of Richard M. Leach Associates
(a financial consulting firm).
- --------------------------------------------------------------------------------------------------------------------------
Timothy J. Penny Trustee since 1996 Senior Counselor to the public None
52 relations firm of Himle-Horner
and Senior Fellow at the
Humphrey Institute,
Minneapolis, Minnesota (a
public policy organization).
- --------------------------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee since 1996 Principal in the law firm of None
63 Willeke & Daniels.
- --------------------------------------------------------------------------------------------------------------------------
24
OTHER INFORMATION (UNAUDITED) WELLS FARGO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
OFFICERS
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE PAST FIVE YEARS OTHER DIRECTORSHIPS
Karla M. Rabusch President, since 2003 Executive Vice President of None
45 Wells 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 2001 to 2003. Vice
President of Wells Fargo Bank,
N.A. from 1997 to 2000.
- --------------------------------------------------------------------------------------------------------------------------
Stacie D. DeAngelo Treasurer, since 2003 Senior Vice President of Wells None
35 Fargo Bank, N.A. Senior 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 Senior Vice President and None
43 Counsel of Wells Fargo Bank,
N.A. Senior Vice President and
Secretary of Wells Fargo Funds
Management, LLC. Vice
President and Counsel of Wells
Fargo Bank, N.A. since 1996.
- --------------------------------------------------------------------------------------------------------------------------
* 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.
25
WELLS FARGO OVERSEAS FUND 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
26
More information about WELLS FARGO FUNDS(R) 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 OR
visit our Web Site at www.wellsfargofunds.com.
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
-----------------------------------------------------
(C)2004 Wells Fargo Funds Management, LLC. All rights reserved. SAR 029 (05/04)
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: May 17, 2004
CERTIFICATION
-------------
I, Karla M. Rabusch, certify that:
1. I have reviewed this report on Form N-CSR of the Wells Fargo Asset Allocation
Fund, Wells Fargo Growth Balanced Fund, Wells Fargo Index Allocation Fund, Wells
Fargo Moderate Balanced Fund, Wells Fargo Strategic Growth Allocation Fund,
Wells Fargo Strategic Income Fund, Wells Fargo Diversified Equity Fund, Wells
Fargo Diversified Small Cap Fund, Wells Fargo Equity Income Fund, Wells Fargo
Equity Index Fund, Wells Fargo Growth Fund, Wells Fargo Growth Equity Fund,
Wells Fargo Index Fund, Wells Fargo International Equity Fund, Wells Fargo Large
Cap Appreciation Fund, Wells Fargo Large Cap Value Fund, Wells Fargo Large
Company Growth Fund, Wells Fargo Montgomery Emerging Markets Focus Fund, Wells
Fargo Montgomery Institutional Emerging Markets Fund, Wells Fargo Montgomery Mid
Cap Growth Fund, Wells Fargo Montgomery Small Cap Fund, Wells Fargo SIFE
Specialized Financial Services Fund, Wells Fargo Small Cap Growth Fund, Wells
Fargo Small Cap Opportunities Fund, Wells Fargo Small Company Growth Fund, Wells
Fargo Small Company Value Fund, Wells Fargo Specialized Health Sciences Fund,
Wells Fargo Specialized Technology Fund and Wells Fargo Overseas 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: May 17, 2004
/s/ Karla M. Rabusch
- -----------------------
Karla M. Rabusch
President
Wells Fargo Funds Trust
CERTIFICATION
-------------
I, Stacie D. DeAngelo, certify that:
1. I have reviewed this report on Form N-CSR of the Wells Fargo Asset Allocation
Fund, Wells Fargo Growth Balanced Fund, Wells Fargo Index Allocation Fund, Wells
Fargo Moderate Balanced Fund, Wells Fargo Strategic Growth Allocation Fund,
Wells Fargo Strategic Income Fund, Wells Fargo Diversified Equity Fund, Wells
Fargo Diversified Small Cap Fund, Wells Fargo Equity Income Fund, Wells Fargo
Equity Index Fund, Wells Fargo Growth Fund, Wells Fargo Growth Equity Fund,
Wells Fargo Index Fund, Wells Fargo International Equity Fund, Wells Fargo Large
Cap Appreciation Fund, Wells Fargo Large Cap Value Fund, Wells Fargo Large
Company Growth Fund, Wells Fargo Montgomery Emerging Markets Focus Fund, Wells
Fargo Montgomery Institutional Emerging Markets Fund, Wells Fargo Montgomery Mid
Cap Growth Fund, Wells Fargo Montgomery Small Cap Fund, Wells Fargo SIFE
Specialized Financial Services Fund, Wells Fargo Small Cap Growth Fund, Wells
Fargo Small Cap Opportunities Fund, Wells Fargo Small Company Growth Fund, Wells
Fargo Small Company Value Fund, Wells Fargo Specialized Health Sciences Fund,
Wells Fargo Specialized Technology Fund and Wells Fargo Overseas 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: May 17, 2004
/s/ Stacie D. DeAngelo
- -----------------------
Stacie D. DeAngelo
Treasurer
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 March 31, 2004 (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: May 17, 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 March 31, 2004 (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: May 17, 2004
/s/ Stacie D. DeAngelo
----------------------
Stacie D. DeAngelo
Treasurer
Wells Fargo Funds Trust