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, 2002

Date of reporting period: March 31, 2003

ITEM 1. REPORT TO SHAREHOLDERS

STOCK FUNDS

TABLE OF CONTENTS

LETTER TO SHAREHOLDERS	1
PERFORMANCE HIGHLIGHTS
DIVERSIFIED EQUITY FUND	2
DIVERSIFIED SMALL CAP FUND	4
EQUITY INCOME FUND	6
EQUITY INDEX FUND	8
EQUITY VALUE FUND	10
GROWTH FUND	12
GROWTH EQUITY FUND	14
INDEX FUND	16
INTERNATIONAL EQUITY FUND	18
LARGE CAP APPRECIATION FUND	20
LARGE COMPANY GROWTH FUND	22
MID CAP GROWTH FUND	24
SIFE SPECIALIZED FINANCIAL SERVICES FUND	26
SMALL CAP GROWTH FUND	28
SMALL CAP OPPORTUNITIES FUND	30
SMALL COMPANY GROWTH FUND	32
SMALL COMPANY VALUE FUND	34
SPECIALIZED HEALTH SCIENCES FUND	36
SPECIALIZED TECHNOLOGY FUND	38
PORTFOLIO OF INVESTMENTS
DIVERSIFIED EQUITY FUND	40
DIVERSIFIED SMALL CAP FUND	41
EQUITY INCOME FUND	42
EQUITY INDEX FUND	43
EQUITY VALUE FUND	58
GROWTH FUND	61
GROWTH EQUITY FUND	64
INDEX FUND	65
INTERNATIONAL EQUITY FUND	66
LARGE CAP APPRECIATION FUND	70
LARGE COMPANY GROWTH FUND	71
MID CAP GROWTH FUND	72
SIFE SPECIALIZED FINANCIAL SERVICES FUND	76
SMALL CAP GROWTH FUND	78
SMALL CAP OPPORTUNITIES FUND	82
SMALL COMPANY GROWTH FUND	86
SMALL COMPANY VALUE FUND	87
SPECIALIZED HEALTH SCIENCES FUND	88
SPECIALIZED TECHNOLOGY FUND	90
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES	94
STATEMENTS OF OPERATIONS	98
STATEMENTS OF CHANGES IN NET ASSETS	102
FINANCIAL HIGHLIGHTS	112
NOTES TO FINANCIAL HIGHLIGHTS	128
NOTES TO FINANCIAL STATEMENTS	129
MASTER PORTFOLIOS
PORTFOLIO OF INVESTMENTS
DISCIPLINED GROWTH PORTFOLIO	140
EQUITY INCOME PORTFOLIO	143
INDEX PORTFOLIO	146
INTERNATIONAL EQUITY PORTFOLIO	162
LARGE CAP APPRECIATION PORTFOLIO	166
LARGE COMPANY GROWTH PORTFOLIO	170
SMALL CAP BASIC VALUE PORTFOLIO	172
SMALL CAP INDEX PORTFOLIO	175
SMALL CAP VALUE PORTFOLIO	193
SMALL COMPANY GROWTH PORTFOLIO	196
SMALL COMPANY VALUE PORTFOLIO	201
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES	206
STATEMENTS OF OPERATIONS	208
STATEMENTS OF CHANGES IN NET ASSETS	210
FINANCIAL HIGHLIGHTS	212
NOTES TO FINANCIAL STATEMENTS	215
BOARD OF TRUSTEES	219
LIST OF ABBREVIATIONS	221

NOT FDIC INSURED–NO BANK GUARANTEE–MAY LOSE VALUE

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STOCK FUNDS

DEAR VALUED SHAREHOLDER

We are pleased to provide you with this Wells Fargo Stocks Funds semi-annual report for the six-month period ended March 31, 2003. On the following pages, you will find a discussion of each Fund, including performance highlights, the Fund managers’ strategic outlook, as well as interesting facts and figures about each portfolio.

THE ECONOMY: WAR WORRIES CAUSE SLOWDOWN

Investors’ concerns about the war and a spike in oil prices turned a developing economic recovery into a near-recession as the period came to an end. The slowdown was exacerbated by harsh winter weather in February and by a later than usual start to the important Easter retailing season. In addition, manufacturing suffered a relapse, and soft labor-market conditions were punctuated by back-to-back employment declines in February and March. Although interest rates remained historically low during the period, consumer spending was not robust as hoped. Capital spending also remained weak, with companies taking a wait-and-see attitude while the war in Iraq was in progress.

STOCKS: LIGHT AT THE END OF THE TUNNEL?

Stocks achieved a fourth-quarter 2002 rally only to stumble during the opening months of 2003. The war in Iraq overrode company performance in determining the fate of stocks. During March, the stock market went up when the war news was good and went down when it appeared that U.S. forces would face greater resistance. However, for the six-month period as a whole, health care and technology stocks, particularly Internet stocks, performed relatively well, while financial services and retailer stocks struggled. Growth stocks outperformed the value style of investing, narrowing the value style’s wide performance advantage built up during the bear market of the past three years. International stocks modestly outperformed U.S. stocks, but mainly because of foreign currency gains. Indeed, investors throughout the world were also concerned about the Iraq war and the sluggish global economy.

BONDS: CORPORATES LEAD THE WAY

Despite spectacular bankruptcies in the airline and telecommunications industries, investors continued to buy corporate bonds as investors sought yield advantages over Treasury securities. Growing federal budget deficits made investors concerned that interest rates would rise, causing bond prices to fall. Still, the stability that bonds have offered over the past three years re-emphasizes the importance of asset allocation in investment portfolios.

LOOKING AHEAD

Now that the Iraq war appears to be concluding and oil prices have fallen, we believe there is good reason for optimism in the markets. Inflation is subdued and interest rates remain at a historical low, suggesting that a modest increase in business activity could translate into stronger corporate profits and higher stock prices. Of course, a stronger economy is likely to bring higher interest rates, which could depress bond prices.

During these uncertain economic times, it is important to ensure that your portfolio is properly diversified. While diversification will not prevent losses in a bear market, it may help reduce them and keep you on track to reach your financial goals.

Thank you for choosing Wells Fargo Funds. We appreciate your confidence in us during this volatile time period. 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 can also find answers to many of your questions online at www.wellsfargo.com.

Sincerely,

Karla Rabusch

President

Wells Fargo Funds

1

STOCK FUNDS PERFORMANCE HIGHLIGHTS

DIVERSIFIED EQUITY FUND

INVESTMENT OBJECTIVE

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

Wells Fargo Funds Management, LLC

SUB-ADVISERS

Wells Capital Management Incorporated

Cadence Capital Management

Peregrine Capital Management, Inc.

Smith Asset Management Group, L.P.

FUND MANAGERS

Collectively Managed

INCEPTION DATE

12/31/88

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 2.03%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%. The Fund’s Class A shares distributed $0.11 per share in dividend income and no capital gains during the period.

After posting solid gains in October and November of 2002, the U.S. stock market struggled for the balance of the period as increased fuel prices, the news regarding events leading up to the war in Iraq and the weak economy created an atmosphere of uncertainty. The Federal Reserve Board’s decision to lower interest rates to 1.25% did not seem able to jumpstart the economy or boost the holiday retail season. The economic slowdown was aggravated by harsh winter weather in February 2003 and by a late start to the Easter retailing season as anticipated. Manufacturing suffered a relapse in the market, and soft labor-market conditions were punctuated by back-to-back employment declines in February and March.

Still, there were some bright spots in the economy. The Fund’s technology stocks showed surprising resilience during the period, as investors became more optimistic about future capital spending. Meanwhile, the Fund’s health care holdings were relatively immune to the fluctuations of the economy, as new technologies combined with an aging population, led to growth in revenues and profits.

During the period, the conflict with Iraq overshadowed global equity markets, particularly in Europe. France and Germany recorded several consecutive months of losses, while the United Kingdom fared somewhat better. In Asia, the spread of the SARS (Severe Acute Respiratory Syndrome) epidemic weighed down on Hong Kong and Singapore, while the Japanese equity market ended its fiscal year with another decline due to a lack of confidence in government policy.

STRATEGIC OUTLOOK

Some investors are concerned that economic weakness will persist after the Iraq conflict has concluded. While the economy has remained stagnant as businesses have postponed decisions in light of uncertainties concerning the war, we believe that stronger economic activity may resume after the military conflict ends.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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,

2

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(3.83)		(30.66	)	(4.85	)	6.74	2.03	(26.43	)	(3.72	)	7.37
Wells Fargo Diversified Equity Fund – Class B	(3.33	)	(30.64	)	(4.76	)	6.57	1.67	(26.99	)	(4.44	)	6.57
Wells Fargo Diversified Equity Fund – Class C	(0.43	)	(28.49	)	(4.59	)	6.49	1.58	(27.04	)	(4.40	)	6.60
Wells Fargo Diversified Equity Fund – Institutional Class								2.16	(26.27	)	(3.62	)	7.42
Benchmark
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.06
Price to Earnings Ratio (trailing 12 months)	17.0	x
Price to Book Ratio	14.8	x
Median Market Cap ($B)	15.1
Number of Holdings	1001
Portfolio Turnover	18	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Pfizer Incorporated	2.20%
Microsoft Corporation	2.11%
Exxon Mobil Corporation	1.79%
American International Group	1.77%
IBM Corporation	1.56%
Medtronic Incorporated	1.45%
Ebay Incorporated	1.35%
Wal-Mart Stores Incorporated	1.34%
General Electric Company	1.31%
Intel Corp	1.30%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 that fund’s performance results.

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 front-end sales charge is 1.0% and the maximum CDSC is 1.0%. Performance including sales charges assumes the maximum sales charge for the corresponding time period. Institutional Class shares are sold without sales charges.

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 investments of the Fund. See Notes to the Financial Statements for a discussion of the Master Trust.

⁴   Sector distribution is 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

STOCK FUNDS PERFORMANCE HIGHLIGHTS

DIVERSIFIED SMALL CAP FUND

INVESTMENT OBJECTIVE

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

Wells Fargo Funds Management, LLC

SUB-ADVISERS

Wells Capital Management Incorporated

Peregrine Capital Management, Inc.

FUND MANAGERS

Collectively Managed

INCEPTION DATE

12/31/97

PERFORMANCE HIGHLIGHTS

The Fund’s Institutional Class shares returned (1.05)%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the Russell 2000 Index², which returned 1.39%. The Fund distributed no dividend income and $0.08 per share in capital gains during the period.

The six-month period was a trying time for stocks, regardless of market capitalization, sector or geographical location. A volatile geopolitical environment, eroding corporate profits, and headlines of corporate scandal and investigations continued to test investor confidence. Despite a December 2002 stock market rally, the stock market continued to drift.

In particular, the travel industry was hard hit by war and tough economic times. For example, portfolio holdings in hotel real estate investment trusts were adversely impacted by reduced business travel attributed to the war in Iraq. In addition, the Fund’s holdings in certain manufacturing stocks performed poorly as the economic recovery stalled.

However, there were some positive performances during the period. Technology stocks held by the Fund rallied strongly in the fourth quarter of 2002, rebounding from low valuations. Some energy and utility stocks held by the Fund also performed well as oil and natural gas prices surged. In addition, health care stocks generally remained stable, since they tend to remain steady in a weak economy.

STRATEGIC OUTLOOK

We seek companies without regard to industry or sector where strong, emerging fundamental trends are not yet reflected in their stock prices. In general, we believe that the Fund’s holdings include companies with strong earnings growth potential and attractive share prices. At the same time, by the end of the period, the overall stock market appeared more reasonably priced than it has been in recent years.

Some investors are concerned that economic weakness will persist after resolution of the Iraq conflict. While the economy has remained stagnant as businesses have postponed decisions in light of uncertainties concerning the war, we believe that stronger economic activity may resume after the war has concluded.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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.

4

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	Excluding Sales Charge
	6-Month*		1-Year		5-Year		Life of Fund
Wells Fargo Diversified Small Cap Fund – Institutional Class	(1.05	)	(26.27	)	(3.65	)	(1.42	)
Benchmark
Russell 2000 Index	1.39		(26.96	)	(4.12	)	(1.80	)

* Returns for periods of less than one year are not annualized.

FUND CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.82
Price to Earnings Ratio (trailing 12 months)	15.0	x
Price to Book Ratio	13.4	x
Median Market Cap ($B)	0.6
Number of Holdings	756
Portfolio Turnover	31	%

** A measure of the Fund’s sensitivity to market movements. The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Amerigroup Corporation	0.73%
Agrium, Incorporated	0.69%
Platinum Underwriters Holdings, Limited	0.65%
Kroll Incorporated	0.61%
Energen Corporation	0.6%
Lone Star Technologies	0.6%
Nbty Incorporated	0.6%
Cullen/Frost Bankers Incorporated	0.56%
Cephalon Incorporated	0.55%
Ivax Corporation	0.51%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

Performance shown for 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 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 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 is 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 Index. The chart assumes a hypothetical investment of $10,000 in Institutional Class shares and reflects all operating expenses.

5

STOCK FUNDS PERFORMANCE HIGHLIGHTS

EQUITY INCOME FUND

INVESTMENT OBJECTIVE

The Wells Fargo Equity Income Fund (the Fund) seeks long-term capital appreciation and above-average dividend income.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

David L. Roberts, CFA

Gary J. Dunn, CFA

INCEPTION DATE

03/31/89

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 1.51%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%, and underperforming the Russell 1000 Value Index³, which returned 3.90%. The Fund’s Class A shares distributed $0.25 per share in dividend income and $2.46 per share in capital gains during the period.

Although the fourth quarter of 2002 experienced a significant recovery in the stock market, volatility returned in the first quarter of 2003. Increased gasoline prices, negative news leading up to the war in Iraq and a weakened economy created an atmosphere of uncertainty for investors.

Still, there were some bright spots in the economy, primarily in the technology, health care and industrials sectors. One of the Fund’s holdings, Hewlett-Packard, benefited from surprisingly strong profits, while IBM, another Fund holding, received favorable reviews from Wall Street analysts. In addition, Fund holdings such as Johnson & Johnson reported excellent performance, while General Electric posted earnings growth despite the difficult business environment.

However, other Fund holdings did not fare so well. Shares of Altria (formerly Phillip Morris) tumbled after an Illinois judge ruled against the company in a case involving its marketing of light cigarettes. Meanwhile, Aegon N.V., a Dutch insurance company with operations worldwide, lowered its dividend after a disappointing fourth quarter. On average, large-cap value stocks slightly underperformed large-cap growth stocks during the six-month period.

STRATEGIC OUTLOOK

Fund performance from the start of the war on March 20, 2003 until the end of the reporting period may provide clues to sector strengths and weaknesses in the coming months. Energy-related and defensive sectors of the market were most resilient during the market’s sell-off just after the start of the war. However, market leadership then rotated toward the beaten-down telecommunications industry and cyclically-sensitive sectors such as technology, financial services and industrials — a pattern that could be maintained during any future post-war rally. Ultimately, a strong rally in stocks may hinge on a revenue-led recovery in corporate profits, the prospects for which we believe may be improving.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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 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 performance results.

6

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(4.32	)	(30.60	)	(5.03	)	7.19	1.51	(26.36	)	(3.90	)	7.83
Wells Fargo Equity Income Fund – Class B	(3.51	)	(30.26	)	(4.94	)	7.19	1.13	(26.92	)	(4.62	)	7.03
Wells Fargo Equity Income Fund – Class C	(0.79	)	(28.28	)	(4.83	)	6.91	1.15	(26.89	)	(4.64	)	7.02
Wells Fargo Equity Income Fund – Institutional Class								1.65	(26.19	)	(3.74	)	7.92
Benchmarks
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52
Russell 1000 Value Index								3.90	(22.79	)	(2.03	)	9.24

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.79
Price to Earnings Ratio (trailing 12 months)	14.5	X
Price to Book Ratio	12.9	X
Median Market Cap ($B)	36.3
Portfolio Turnover	8	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS4 (AS OF MARCH 31, 2003)
IBM Corporation	4.46%
Pepsico Incorporated	4.1%
Fortune Brands Incorporated	4.01%
Exxon Mobil Corporation	3.87%
3M Company	3.85%
Us Bancorporation	3.63%
Hewlett Packard Company	3.45%
Public Service Enterprise	3.31%
Procter & Gamble Company	3.28%
Sara Lee Corporation	3.24%

SECTOR DISTRIBUTION⁵ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁶

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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charge assumes the maximum sales charge for the corresponding time period. Institutional Class shares are sold without sales charges.

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 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.

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 is 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 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

STOCK FUNDS PERFORMANCE HIGHLIGHTS

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 composing the S&P 500 Index¹ before fees and expenses.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

Laurie R. White

Gregory T. Genung, CFA

INCEPTION DATE

01/25/84

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 4.70%² for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index, which returned 5.00% during the period. The Fund’s Class A shares distributed $0.52 per share in dividend income and $1.70 per share in capital gains during the period.

The six-month period began strong, but weakened as the war with Iraq approached. The fourth quarter of 2002 was led by technology and telecommunications stocks which had been beaten down in prior periods. Positive performers for the Fund among technology stocks were Citrix Systems and Rational Software Corporation while positive performers in telecommunications included Sprint and Qwest. Other positive performers for the Fund included stocks in the financial services, such as J.P. Morgan Chase, and basic materials, health care and consumer staples sectors. Utilities and retail stocks negatively affected Fund performance.

The overriding factor affecting the market since the beginning of 2003 was the conflict leading up to the war, with individual stock selection and corporate performance taking a back seat. During the first quarter of 2003, growth stocks outperformed value stocks, narrowing the value style’s wide performance advantage built up during the bear market of the past three years. Larger-cap stocks held up better than smaller-cap stocks, while U.S. stocks generally outperformed international stocks. Good Fund performers during the first quarter 2003 included Nextel Communications and Yahoo. The health care sector was the only sector among the ten represented in the S&P 500 Index that posted a gain during the first quarter of 2003.

STRATEGIC OUTLOOK

With stocks closely linked to the Iraq conflict, investors might use the market’s response to the first Gulf War as a guide to the pattern of future stock prices. War-related optimism triggered a rally at the start of the quarter subsequent to the war in 1991, but the rally was short-lived amid weak economic and earnings growth. Even though the economy’s current prospects aren’t much different than they were in 1991, it is still unclear whether the market will follow a similar pattern.

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 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. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

8

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF MARCH 31, 2003)

	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	(1.31	)	(29.53	)	(5.53	)	6.97	4.70	(25.24	)	(4.40	)	7.61
Wells Fargo Equity Index Fund – Class B	(0.66	)	(29.34	)	(5.39	)	6.92	4.33	(25.79	)	(5.12	)	6.92
Benchmark
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.00
Price to Earnings Ratio (trailing 12 months)	15.8	X
Price to Book Ratio	13.6	X
Median Market Cap. ($B)	6.6
5-Year Earnings Growth (historic)	12.9	%
Number of Holdings	508
Portfolio Turnover	3	%

** A measure of the Fund’s sensitivity to market movements. The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Microsoft Corporation	3.16%
General Electric Company	3.10%
Exxon Mobil Corporation	2.87%
Wal-Mart Stores Incorporated	2.80%
Pfizer Incorporated	2.34%
Citigroup Incorporated	2.16%
Johnson & Johnson	2.10%
IBM Corporation	1.62%
American International Group	1.57%
Merck & Company Incorporated	1.50%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 objective 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.

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.

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 is 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

STOCK FUNDS PERFORMANCE HIGHLIGHTS

EQUITY VALUE FUND

INVESTMENT OBJECTIVE

The Wells Fargo Equity Value Fund (the Fund) seeks long-term capital appreciation and above-average dividend income.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

David L. Roberts, CFA

Gary J. Dunn, CFA

INCEPTION DATE

07/02/90

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 3.15%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%, and also underperforming the Russell 1000 Value Index³, which returned 3.90%. The Fund’s Class A shares distributed $0.12 per share in dividend income and no capital gains during the period.

In November 2002, the Federal Reserve Board cut interest rates by half a percentage point to 1.25%, which also reduced the cost of money for banks, boosting their profits. As a result, bank stocks performed well in the fourth quarter of 2002, but gave up significant ground during the first quarter of 2003 as investors began to worry about the quality of loan portfolios.

Prior to the fourth quarter of 2002, certain sectors provided the Fund with value opportunities because share prices had declined dramatically. Two examples include the Fund’s holdings in information technology stocks, such as Hewlett-Packard and Motorola, and telecommunications services stocks, such as AT&T and Verizon, where share prices had fallen due to the sluggish economy and weak capital spending.

By early 2003, the Fund began to benefit from its holdings in the health care, manufacturing and utilities sectors, with strong performances by Johnson & Johnson, General Electric and Public Service Enterprise Group. Investors responded positively to stronger than expected revenue and profit growth for these companies. However, one of the Fund’s holdings, Altria, previously known as Phillip Morris, tumbled after an Illinois judge ruled against the tobacco company in a lawsuit regarding the marketing of light cigarettes.

STRATEGIC OUTLOOK

Despite uneven performance during the six-month period, we believe that the Fund may be well-positioned for the next six months. By period-end, the average Fund holding had an above-average dividend yield, a better than expected earnings outlook and a lower stock price than the stock market as a whole. In addition, the conclusion of the war in Iraq may create a positive backdrop for the economy since it could resolve some uncertainty regarding the future for investors as well as corporate management.

¹  Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

Performance shown for Class A, Class B, Class C and Institutional Class shares of the Wells Fargo Equity Value 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 Equity Value 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 September 6, 1996, reflects performance of the Investor shares of the Pacifica Equity Value Fund, a predecessor portfolio with the same investment objective and policies as the Stagecoach Equity Value Fund. Performance shown for the Class B shares for periods prior to September 6, 1996, reflects performance of the Investor shares of the predecessor portfolio, with expenses of the Investor shares adjusted to reflect Class B sales charges and expenses. Performance shown for the 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 prior to October 1, 1995, reflects performance of the Class A shares, adjusted for Institutional Class share expenses.

10

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	Including Sales Charges							Excluding Sales Charges
	6-Month*		1-Year		5-Year		10-Year	6-Month*	1-Year		5-Year		10-Year
Wells Fargo Equity Value Fund – Class A	(2.75	)	(32.76	)	(9.59	)	4.42	3.15	(28.63	)	(8.51	)	5.04
Wells Fargo Equity Value Fund – Class B	(1.96	)	(32.57	)	(9.37	)	4.36	3.04	(29.04	)	(9.15	)	4.36
Wells Fargo Equity Value Fund – Class C	0.99		(30.53	)	(9.35	)	4.24	2.93	(29.12	)	(9.17	)	4.35
Wells Fargo Equity Value Fund – Institutional Class								3.34	(28.46	)	(8.37	)	5.21
Benchmarks
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52
Russell 1000 Value Index								3.90	(22.79	)	(2.03	)	9.24

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.79
Price to Earnings Ratio (trailing 12 months)	14.4	x
Price to Book Ratio	12.8	x
Median Market Cap ($B)	36.3
Number of Holdings	47
Portfolio Turnover	16	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS4 (AS OF MARCH 31, 2003)
IBM Corporation	4.45%
Exxon Mobil Corporation	3.87%
Fortune Brands Incorporated	3.77%
Us Bancorporation	3.69%
Pepsico Incorporated	3.63%
3M Company	3.59%
Hewlett-Packard Company	3.41%
Public Service Enterprise	3.38%
Procter & Gamble Company	3.29%
St Paul Cos Incorporated	3.13%

SECTOR DISTRIBUTION⁵ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁶

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 front-end sales charge is 1.00% and 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.

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 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.

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 is subject to change.

⁶  The chart compares the performance of the Wells Fargo Equity Value Fund Class A and Institutional Class shares for the most recent ten years with the S&P 500 Index and the Russell 1000 Value 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

STOCK FUNDS PERFORMANCE HIGHLIGHTS

GROWTH FUND

INVESTMENT OBJECTIVE

The Wells Fargo Growth Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

Deborah Meacock, CFA

Stephen M. Kensinger, CFA

INCEPTION DATE

08/02/90

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 0.85%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%. The Fund’s Class A shares distributed no dividend income and no capital gains during the period.

During the first half of the period, many of the Fund’s high-quality growth stocks performed poorly, even though the companies’ fundamental results were strong. This hurt the Fund’s performance relative to the S&P 500 Index, which is a blend of growth and value stocks. During the second part of the period, many growth stocks began to perform better. However, the interplay between growth and value seemed to track daily news about the war in Iraq.

Weak performers for the Fund during the period included L-3 Communications Holdings, a defense electronics firm, and Kohl’s, a retailer whole stock prices declined as investors worried about a weak Christmas shopping season. In addition, another Fund holding, Charles Schwab, a leading discount broker, performed poorly as the lagging stock market took its toll on trading volume.

Top performers for the Fund for the six-month period included Amgen (biotechnology), Forest Laboratories (pharmaceuticals), Linear Technology (semiconductors) and Starbucks, which continues to post excellent growth.

STRATEGIC OUTLOOK

We have repositioned the Fund portfolio for what we believe to be better economic times ahead. Specifically, we repositioned the Fund’s portfolio toward an overweight position in technology stocks, focusing on companies that have been gaining market share during slow economic times. We have added some health care holdings in orthopedics and biotechnology. We sold our integrated domestic and international oils as prices reached new highs. We have brought the Fund’s exposure to financials to an underweight position as net interest margins were being narrowed. We believe that the environment ahead may benefit companies that have been controlling costs and managing strong balance sheets.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

Performance shown for Class A, Class B and Institutional Class shares of the Wells Fargo 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 periods prior 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 share sales charges and expenses. Performance shown for the Institutional Class shares of the Fund for periods prior to September 6, 1996, reflects performance of the Fund’s Class A shares adjusted to reflect Institutional Class expenses.

12

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(4.92	)	(28.58	)	(7.65	)	4.10	0.85	(24.24	)	(6.55	)	4.72
Wells Fargo Growth Fund – Class B	(4.54	)	(28.61	)	(7.47	)	4.02	0.46	(24.86	)	(7.24	)	4.02
Wells Fargo Growth Fund – Institutional Class								0.90	(24.20	)	(6.46	)	4.77
Benchmark
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.00
Price to Earnings Ratio (trailing 12 months)	26.0	X
Price to Book Ratio	20.8	X
Median Market Cap. ($B)	17.9
Number of Holdings	46
Portfolio Turnover	30	%

** A measure of the Fund’s sensitivity to market movements. The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Medtronic Incorporated	3.88%
Lowe’s Companies Incorporated	3.64%
Microsoft Corporation	3.54%
Forest Laboratories Incorporated	3.46%
Cisco Systems Incorporated	3.26%
Starbucks Corporation	3.24%
Wal-Mart Stores Incorporated	3.14%
Citigroup Incorporated	2.99%
Amgen Incorporated	2.99%
Bed Bath & Beyond Incorporated	2.90%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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.

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 securities divided by total market value of the Fund.

⁴   Sector distribution is 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%.

13

STOCK FUNDS PERFORMANCE HIGHLIGHTS

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

Wells Fargo Funds Management, LLC

SUB-ADVISERS

Wells Capital Management Incorporated

Peregrine Capital Management, Inc.

FUND MANAGERS

Collectively Managed

INCEPTION DATE

04/30/89

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 0.77%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%. The Fund’s Class A shares distributed no dividend income and no capital gains during the period.

Some of the Fund’s underperformance during the period can be attributed to an overweight position in international stocks, which lagged the U.S. stock market during the first quarter of 2003. France and Germany recorded three consecutive months of losses, while the United Kingdom fared somewhat better. In Asia, the spread of the SARS (Severe Acute Respiratory Syndrome) epidemic weighed down on Hong Kong and Singapore, while the Japanese equity market ended its fiscal year with another decline due to a lack of confidence in government policy. The Fund’s underperformance can also be attributed to its retailing stock holdings which fared poorly for most of the period in the face of a difficult holiday season.

Still, the Fund experienced pockets of solid strength during the six-month period. For example, during October and November, the Fund’s small cap growth and small cap technology holdings experienced strong gains. Technology stocks then held their ground during the first quarter of 2003.

STRATEGIC OUTLOOK

Upon conclusion of the military conflict in Iraq, we believe that investors may focus again on the economy, where the challenge remains to bolster consumer spending with increased capital expenditures. Although the technology/telecommunications bubble burst is now three years old, excess capacity in the market still exists, causing some investors to fear a second recession. Therefore, our outlook for the equity markets is still quite cautious.

By the end of the period, the difference between what investors were willing to pay for high quality, rapidly growing companies versus lower quality, slower-growing companies had narrowed. As a result, we believe that this may be an opportunity to buy growth companies at low relative valuations.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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 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,

14

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(5.03	)	(31.38	)	(5.07	)	6.02	0.77	(27.20	)	(3.94	)	6.65
Wells Fargo Growth Equity Fund – Class B	(4.67	)	(31.39	)	(4.92	)	5.86	0.33	(27.78	)	(4.67	)	5.86
Wells Fargo Growth Equity Fund – Class C	(1.63	)	(29.21	)	(4.71	)	5.84	0.37	(27.78	)	(4.51	)	5.94
Wells Fargo Growth Equity Fund – Institutional Class								0.86	(27.05	)	(3.78	)	6.74
Benchmark
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.06
Price to Earnings Ratio (trailing 12 months)	17.8	X
Price to Book Ratio	16.0	X
Median Market Cap. ($B)	7.0
Portfolio Turnover	29	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Microsoft Corporation	2.21%
Medtronic Incorporated	2.2%
Ebay Incorporated	2.17%
First Data Corporation	2.10%
Pfizer Incorporated	1.73%
Goldman Sachs Group Incorporated	1.73%
Intel Corporation	1.71%
Kohls Corporation	1.61%
Amgen Incorporated	1.57%
American International Group	1.54%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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.

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 front-end sales charge is 1.00% and 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.

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 is 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%.

15

STOCK FUNDS PERFORMANCE HIGHLIGHTS

INDEX FUND

INVESTMENT OBJECTIVE

The Wells Fargo Index Fund (the Fund) seeks to replicate the total rate of return of the S&P 500 Index¹, before fees and expenses.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

Laurie R. White

Gregory T. Genung, CFA

INCEPTION DATE

01/31/87

PERFORMANCE HIGHLIGHTS

The Fund’s Institutional Class shares returned 5.00%² for the six-month period ended March 31, 2003, matching the performance of the S&P 500 Index, which also returned 5.00%. The Fund distributed no dividend income and no capital gains during the period.

The six-month period began strong, but weakened as the war with Iraq approached. The fourth quarter of 2002 was led by technology and telecommunications stocks which had been beaten down in prior periods. Positive performers for the Fund among technology stocks were Citrix Systems and Rational Software Corporation while positive performers in telecommunications included Sprint and Qwest. Other positive performers for the Fund included stocks in the financial services, such as J.P. Morgan Chase, and basic materials, health care and consumer staples sectors. Utilities and retail stocks negatively affected Fund performance.

The overriding factor affecting the market since the beginning of 2003 was the conflict leading up to the war, with individual stock selection and corporate performance taking a back seat. During the first quarter of 2003, growth stocks outperformed value stocks, narrowing the value style’s wide performance advantage built up during the bear market of the past three years. Larger-cap stocks held up better than smaller-cap stocks, while U.S. stocks generally outperformed international stocks. Good Fund performers during the first quarter of 2003 included Nextel Communications and Yahoo. The health care sector was the only sector among the ten represented in the S&P 500 Index that posted a gain during the first quarter of 2003.

STRATEGIC OUTLOOK

With stocks closely linked to the Iraq conflict, investors might use the market’s response to the first Gulf War as a guide to the pattern of future stock prices. War-related optimism triggered a rally at the start of the quarter subsequent to the war in 1991, but the rally was short-lived amid weak economic and earnings growth. Even though the economy’s current prospects aren’t much different than they were in 1991, it is still unclear whether the market will follow a similar pattern.

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   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. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

16

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF MARCH 31, 2003)

	Excluding Sales Charges
	6-Month*	1-Year		5-Year		10-Year
Wells Fargo Index Fund – Institutional Class	5.00	(24.75	)	(3.90	)	8.12
Benchmark
S&P 500 Index	5.00	(24.76	)	(3.76	)	8.52

* Returns for periods of less than one year are not annualized

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.00
Price to Earnings Ratio (trailing 12 months)	15.8	x
Price to Book Ratio	13.6	x
Median Market Cap ($B)	6.6
Portfolio Turnover	3	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Microsoft Corporation	3.15%
General Electric Company	3.08%
Exxon Mobil Corporation	2.86%
Wal-Mart Stores Incorporated	2.79%
Pfizer Incorporated	2.33%
Citigroup Incorporated	2.15%
Johnson & Johnson	2.09%
IBM Corporation	1.61%
American International Group	1.57%
Merck & Co Incorporated	1.49%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 Minnesota, N.A., formerly Norwest Bank Minnesota, 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. Institutional Class shares are sold without sales charges.

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 is 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.

17

STOCK FUNDS PERFORMANCE HIGHLIGHTS

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

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGER

Sabrina Yih, CFA

INCEPTION DATE

09/24/97

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned (5.32)%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the MSCI/EAFE Index², which returned (2.29)%. The Fund’s Class A shares distributed no dividend income and no capital gains during the period.

After a challenging 2002, international markets, with the exception of Japan, began a modest recovery during the fourth quarter. In Europe, the European Central Bank was concerned about lackluster growth, lowering interest rates in an effort to help boost the economy. However, Japan remained mired in a slump as investors were disappointed with efforts to reform the country’s banking system.

By the first quarter of 2003, the Iraq war overshadowed global equity markets, particularly in Europe. France and Germany recorded three consecutive months of losses, while the United Kingdom fared somewhat better. In Asia, the spread of the SARS (severe acute respiratory syndrome) epidemic weighed down on Hong Kong and Singapore, while the Japanese market ended its fiscal year with another decline due to a lack of confidence in government policy. We kept and continue to keep a close eye on the SARS epidemic and political uncertainty in Asia and have lowered the Fund’s exposure in emerging markets in an effort to manage risk. We maintained our underweight position in Japan because of structural issues in their economy.

Over the six-month period, the Fund achieved good results from its holdings in Royal Bank of Scotland and Vodafone Group, as both companies reported solid results. Weak performers for the Fund included Nestle SA, suffering from lower per share earning’s growth than its European peers, and Toyota Motor, which underperformed despite reporting record earnings due to speculative short selling of Japanese blue chip companies.

STRATEGIC OUTLOOK

Investor attention remains focused on the military conflict in Iraq as well as the impact of SARS. In addition, corporate profits remain weak worldwide and a return in profitability will be needed to restore investor optimism. To that end, the Fund added holdings to its portfolio such as Anglo Irish Bank, Bank of Ireland and Australia & New Zealand Bank due to their strong earnings outlook, while it sold its shares of Allianz, Nintendo and China Mobile because their prospects for growth had weakened. We continue to focus on high-quality stocks that we believe have a good outlook for long-term profitability and stock price performance.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

Performance shown for Class A, Class B and 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.

18

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(10.80	)	(34.02	)	(6.67	)	(4.35	)	(5.32	)	(29.98	)	(5.57	)	(3.32	)
Wells Fargo International Equity Fund – Class B	(10.22	)	(33.94	)	(6.59	)	(4.17	)	(5.49	)	(30.46	)	(6.23	)	(4.00	)
Wells Fargo International Equity Fund – Class C	(7.35	)	(31.85	)	(6.41	)	(4.18	)	(5.50	)	(30.49	)	(6.23	)	(4.00	)
Wells Fargo International Equity Fund – Institutional Class									(5.19	)	(29.83	)	(5.37	)	(3.14	)
Benchmark
MSCI/EAFE Index									(2.29	)	(23.23	)	(7.13	)	(2.9	)

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.07
Price to Earnings Ratio (trailing 12 months)	15.5	X
Price to Book Ratio	14.2	X
Median Market Cap. ($B)	0.4
Number of Holdings	86
Portfolio Turnover	33	%

** A measure of the Fund’s sensitivity to market movements. The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Canon Incorporated	1.96%
Eni Spa	2.10%
Loblaw Cos Limited	2.79%
Nestle S.A.	3.03%
Novartis AG	2.32%
Royal Bank Of Scotland	2.68%
Royal Dutch Petroleum Company	2.46%
Total Fina Elf	3.33%
Toyota Motor Corporation	2.62%
Vodafone Group Plc	2.62%

PORTFOLIO COMPOSITION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 front-end sales charge is 1.00% and 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.

²   The Morgan Stanley Capital International/Europe, Australasia and Far East Index (MSCI/EAFE) 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.

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 holdings 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%.

19

STOCK FUNDS PERFORMANCE HIGHLIGHTS

LARGE CAP APPRECIATION FUND

INVESTMENT OBJECTIVE

The Wells Fargo Large Cap Appreciation Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Cadence Capital Management

FUND MANAGERS

David Breed, CFA

William B. Bannick, CFA

Katherine A. Burdon, CFA

INCEPTION DATE

08/31/01

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 1.99%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%.

Although the Fund’s returns had a strong lead over the S&P 500 Index’s return in the first quarter of 2003, it was not enough to offset the Fund’s relative underperformance in the fourth quarter of 2002, when the Fund’s performance was hurt by its investment in a defense electronics company, L-3 Communications, whose share price declined when some analysts cut earning estimates. In addition, the Fund’s investment in Tenet Healthcare was hurt by news that the company had been more aggressive than some competitors in its Medicaid billing procedures.

On the other hand, the Fund benefited from its holdings in the financial service sector, particularly mortgage companies and regional banks. Mortgage companies did well because of the huge volume of home refinancing that took place as interest rates declined. Regional banks profited from a lower cost of funds and the general avoidance of loans to large bankrupt companies plaguing the big money center banks. In addition, the Fund’s holdings in two technology companies, Nextel Communications and eBay, benefited performance.

STRATEGIC OUTLOOK

We believe that a victory in Iraq and regime change may help to restore much needed confidence in the stock market. In the near term, however, we expect current levels of high volatility to continue due to the slower-than-hoped for economic recovery and lack of job growth.

In the meantime, we see good opportunities in the health care and technology sectors. New discoveries in cardiovascular medicine, next-generation drug therapies for a variety of disorders, and demographic trends that are resulting in increased utilization of facilities are all positive factors for the sectors. Within technology, there is little doubt that corporations have under-invested in the past several years and may have to compensate for this at some point. Thus, the Fund’s holdings are currently focused in productivity enhancing software, security and storage, areas where we think the best opportunities exist.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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.

20

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(3.87	)	(27.76	)	(18.49	)	1.99	(23.35	)	(15.38	)
Wells Fargo Large Cap Appreciation Fund – Class B	(3.39	)	(27.68	)	(18.15	)	1.61	(23.87	)	(16.01	)
Wells Fargo Large Cap Appreciation Fund – Class C	(0.40	)	(25.39	)	(16.54	)	1.61	(23.87	)	(16.01	)
Wells Fargo Large Cap Appreciation Fund – Institutional Class							2.12	(23.13	)	(15.17	)
Benchmark
S&P 500 Index							5.00	(24.76	)	(17.91	)

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.75
Price to Earnings Ratio (trailing 12 months)	20.2	X
Price to Book Ratio	3.3	X
Median Market Cap ($B)	10.1
Portfolio Turnover	71	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Pfizer Incorporated	3.01%
Microsoft Corporation	2.33%
IBM Corporation	1.94%
Johnson & Johnson	1.91%
Exxon Mobil Corporation	1.84%
Amgen Incorporated	1.73%
Pharmacia Corporation	1.60%
Citigroup Incorporated	1.41%
United Health Group Incorporated	1.40%
Allergan Incorporated	1.38%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charge assumes the maximum sales charge for the corresponding time period. Institutional Class shares are sold without sales charges.

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 is 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%.

21

STOCK FUNDS PERFORMANCE HIGHLIGHTS

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

Wells Fargo Funds Management, LLC

SUB-ADVISER

Peregrine Capital Management, Inc.

FUND MANAGERS

John S. Dale, CFA

Gary E. Nussbaum, CFA

INCEPTION DATE

12/31/82

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 5.74%¹ for the six-month period ended March 31, 2003, excluding sales charges, outperforming the S&P 500 Index², which returned 5.00% during the period.

Although the news coming from Wall Street seemed quite negative, there were several days during the six-month period, particularly during the fourth quarter of 2002, when the news seemed quite good.

In particular, the Fund achieved good results from holdings such as Amgen (biotechnology), eBay (Internet) and Intel (technology). Amgen is a “blue chip” biotechnology company, producing steady results in a field where scientific discovery doesn’t always yield breakthroughs on Wall Street’s quarterly timetable. In addition, eBay has proven to be one of the most successful Internet companies emerging from the dot.com era, while Intel has been as steady as one could expect in the volatile technology area.

During the period, we sold the Fund’s position in AOL Time Warner as it became clear that the company was unlikely to meet our long-term growth and profitability expectations. Meanwhile, we purchased Dell Computer as a holding for the Fund since the company continued to gain market share in its core markets while expanding into new product and geographical areas.

STRATEGIC OUTLOOK

Investors have not favored the growth style over the past few years. Indeed, the difference between what investors are willing to pay for high-quality, rapidly growing companies versus lower quality, slower growing companies has narrowed significantly. As a result, we believe that this is an opportunity to buy quality growth companies at low relative prices.

Because of the difficult economic environment, the marketplace remains highly competitive and the number of companies that can produce rapid earnings gains is few and far between. Those companies that rely on a great deal of debt or are higher cost producers probably will be hurt the worst. We believe that the Fund’s holdings include a collection of dominant, low-cost, high-growth companies that can take advantage of the current environment.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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 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.

22

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(0.34	)	(32.47	)	(3.15	)	7.62	5.74	(28.35	)	(1.99	)	8.26
Wells Fargo Large Company Growth Fund – Class B	0.39		(32.34	)	(2.92	)	7.56	5.39	(28.78	)	(2.55	)	7.56
Wells Fargo Large Company Growth Fund – Class C	3.40		(30.15	)	(2.73	)	7.46	5.45	(28.73	)	(2.54	)	7.56
Wells Fargo Large Company Growth Fund – Institutional Class								5.91	(28.17	)	(1.80	)	8.37
Benchmark
S&P 500 Index								5.00	(24.76	)	(3.76	)	8.52

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.30
Price to Earnings Ratio (trailing 12 months)	23.0	X
Price to Book Ratio	4.1	X
Median Market Cap ($B)	21.6
Portfolio Turnover	4	%

** A measure of the Fund’s sensitivity to market movements. The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Microsoft Corporation	6.28%
Medtronic Incorporated	6.26%
Ebay Incorporated	6.17%
First Data Corporation	5.97%
Pfizer Incorporated	4.92%
Goldman Sachs Group Incorporated	4.91%
Intel Corporation	4.85%
Kohls Corporation	4.57%
Amgen Incorporated	4.47%
American International Group	4.39%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 front-end sales charge is 1.00% and 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.

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 is 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%.

23

STOCK FUNDS PERFORMANCE HIGHLIGHTS

MID CAP GROWTH FUND

INVESTMENT OBJECTIVE

The Wells Fargo Mid Cap Growth Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

Jerome “Cam” Philpott, CFA

Stuart Roberts

INCEPTION DATE

10/16/00

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 10.19%¹ for the six-month period ended March 31, 2003, excluding sales charges, outperforming the Russell Midcap^® Index², which returned 9.14%. The Fund’s Class A shares distributed no dividend income and no capital gains during the period.

The mid-cap segment of the stock market was one of the strongest performers of any investment category during the period. Mid-cap stocks are large enough to have staying power, but small enough to offer growth. Within the Fund’s portfolio, strong stock selection in the technology and health care areas contributed to performance, while stock selection in the consumer discretionary and financial services areas served to restrain returns.

In the technology area, the Fund’s positions in MicroStrategy and Integrated Circuit Systems outperformed during the period as both companies posted stronger than expected revenues and profits. MicroStrategy is a provider of business intelligence software that enables companies to analyze raw data stored across their enterprise to reveal insights needed to develop business solutions. Integrated Circuit Systems supplies a broad line of silicon timing devices for use in personal computers. In the health care area, pharmaceutical companies, such as Allergan and MedImmune, performed well for the Fund as they continued to develop innovative products and receive FDA approval.

However, retailers, including Michael’s Stores and Dollar Tree Stores, were weak performers for the Fund as both companies posted disappointing sales. In addition, another Fund holding, The Interpublic Group of Companies, a group of advertising and marketing companies, suffered along with the weak advertising environment. Moreover, the Fund’s holdings in the financial sector, specifically, Concord EFS, a payment processing firm, and Synovus Financial both experienced declining in share prices, the victims of a weak economy.

STRATEGIC OUTLOOK

The economy has remained stagnant as businesses have postponed decisions in light of uncertainties concerning the war. However, we believe that the business climate may improve as the war comes to a conclusion. Already, we are encouraged to see that energy prices have declined sharply in the past few weeks, which helps business as well as the consumer.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net expense operating 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.

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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charges assumes the maximum sales charge for the corresponding time period.

24

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	Including Sales Charge					Excluding Sales Charge
	6-Month*	1-Year		Life of Fund		6-Month*	1-Year		Life of Fund
Wells Fargo Mid Cap Growth Fund – Class A	3.86	(32.92	)	(32.79	)	10.19	(28.83	)	(31.15	)
Wells Fargo Mid Cap Growth Fund – Class B	4.78	(32.97	)	(32.49	)	9.78	(29.44	)	(31.65	)
Wells Fargo Mid Cap Growth Fund – Class C	7.69	(30.85	)	(31.92	)	9.78	(29.44	)	(31.65	)
Benchmark
Russell Midcap® Index						9.14	(26.11	)	(11.13	)

* Returns for periods of less than one year are not annualized.

FUND CHARACTERISTICS (AS OF MARCH 31, 2003)
Price to Earnings Ratio (trailing 12 months)	19.9	X
Price to Book Ratio	2.5	X
Median Market Cap. ($B)	3.3
Number of Holdings	106
Portfolio Turnover	143	%

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Priority Healthcare Corporation	2.35%
Allergan Incorporated	2.23%
Family Dollar Stores Incorporated	2.15%
Gilead Sciences Incorporated	1.90%
Bed Bath & Beyond Incorporated	1.85%
Caremark Rx Incorporated	1.73%
Laboratory Corp of America	1.72%
Medicis Pharmaceutical	1.71%
Express Scripts Incorporated	1.60%
Nike Incorporated	1.54%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

²   The Russell Midcap^® Index consists of the bottom 800 securities of the Russell 1000 Index with higher-than-average growth orientation as ranked by the total market capitalization. Securities in this index generally have higher price-to-book and price-earnings ratios, lower dividend yields and higher forecasted growth values. 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 is subject to change.

⁵   The chart compares the performance of the Wells Fargo Mid Cap Growth Fund Class A shares for the life of the Fund with the Russell Midcap^® 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%.

25

STOCK FUNDS PERFORMANCE HIGHLIGHTS

SIFE SPECIALIZED FINANCIAL SERVICES FUND

INVESTMENT OBJECTIVE

The Wells Fargo SIFE Specialized Financial Services Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

Michael J. Stead

Kirk Hartman

INCEPTION DATE

07/02/62

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned (4.51)%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%. The Fund’s Class A shares distributed $0.03 per share in dividend income and no capital gains during the period.

During the past six months, financial services companies have underperformed the broader stock market. Stocks related to Wall Street, such as investment banks and money management firms, experienced declining profits. In addition, money center banks saw many of their big clients declare bankruptcy, although many regional and community banks remained profitable. In addition, many insurers saw their shares fall as investors worried about the impact of war and potential terrorist activity.

Moreover, the economy threatened to fall into recession. Early in the period, the Federal Reserve Board attempted to jump-start the economy by lowering interest rates to 1.25%. Despite this effort, economic growth continued to stall as the war with Iraq approached. Meanwhile, the low interest rate environment exerted downward pressure on net interest margins, causing banks to have difficulty posting profit growth. At the same time, the weak economy caused loan growth to stagnate while consumer credit quality deteriorated.

The Fund’s performance benefited from the Fund’s investment in financial institutions that have franchises in those states in which the economy is growing faster than the national average, such as the Bank of the Ozarks and Doral Financial. In addition, the Fund’s underweight position in the insurance sector was beneficial.

STRATEGIC OUTLOOK

The optimism unleashed at the end of the Gulf War 12 years ago triggered a stock market rally. However, the rally was short-lived amid weak economic and earnings growth. History could repeat itself this year, because the economy’s prospects are not much different than they were in the latter part of 1991. That could be a concern for financial services companies, many of which are dependent on economic strength for profits.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through February 24, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

Performance shown for Class A, Class B and 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 shares 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 from May 1, 1997 to February 22, 2002, reflects the performance of the Class A shares adjusted to reflect each Class’s fees and expenses.

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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charge assumes the maximum sales charge for the corresponding time period.

26

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(10.00)	(26.65)	(3.71)	9.03	(4.51)	(22.18)	(2.56)	9.67
Wells Fargo SIFE Specialized Financial Services Fund  –  Class B	(9.84)	(26.01)	(3.78)	8.67	(5.12)	(22.95)	(3.54)	8.67
Wells Fargo SIFE Specialized Financial Services Fund – Class C	(6.77)	(24.24)	(3.80)	8.54	(4.88)	(22.86)	(3.61)	8.65
Benchmark
S&P 500 Index					5.00	(24.76)	(3.76)	8.52

* Returns for periods of less than one year are not annualized.

FUND CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.55
Price to Earnings Ratio (trailing 12 months)	11.5	X
Price to Book Ratio	1.8	X
Median Market Cap. ($B)	6.4
Number of Holdings	41
Portfolio Turnover	148	%

** A measure of the Fund’s sensitivity to market movements.  The benchmark beta is 1.00 by definition.

TEN LARGEST HOLDINGS3 (AS OF MARCH 31, 2003)
Citigroup Incorporated	11.71%
Bank Of America Corporation	5.35%
Lehman Brothers Holdings Incorporated	3.13%
Federal National Mortgage Association	2.98%
American International Group	2.96%
Bear Stearns Companies Incorporated	2.76%
Wachovia Corporation	2.66%
Washington Mutual Incorporated	2.47%
Endurance Specialty Holdings	2.37%
Greater Bay Bancorp	2.31%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 is 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%.

27

STOCK FUNDS PERFORMANCE HIGHLIGHTS

SMALL CAP GROWTH FUND

INVESTMENT OBJECTIVE

The Wells Fargo Small Cap Growth Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

FUND MANAGERS

Jerome “Cam” Philpott, CFA

Allen J. Ayvazian

INCEPTION DATE

11/01/94

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 1.34%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the Russell 2000 Index², which returned 1.39%.

The Fund’s technology holdings generally hurt performance during the period, particularly during the first quarter of 2003. Examples of the Fund’s holdings include Webex, the nation’s largest web-conferencing company, which performed poorly after Microsoft acquired one of its competitors; and Titan Corp., an information technology company whose share price declined when its president resigned unexpectedly.

On the plus side, many stocks in the health care sector posted strong fundamental performance for the Fund, including Scios, which agreed to merge with Johnson & Johnson, receiving a 30% cash premium. Another strong performer was Pharmaceutical Resources, Inc., whose share price rose by more than 40% on news that the company’s core generic drug business grew faster than anticipated during 2002. We believe that new product approvals along with expected strong sales should accelerate both revenue and earnings growth for the company in 2003.

In the consumer area, Gtech Holdings, the leading online lottery vendor, was a good holding for the Fund, as it posted profits well above estimates. We believe that the company’s revenue growth should accelerate as state and local governments turn to lottery games to address budget deficits.

STRATEGIC OUTLOOK

While some investors are concerned that economic weakness will persist after the Iraq conflict is resolved, we believe that this view may be misplaced. The economy has remained stagnant as businesses have postponed decisions in light of uncertainties concerning the war. But now that it appears as though the war will draw to a close, we believe that economic activity may again strengthen. Additionally, energy prices have fallen sharply since the beginning of the war, which helps both business and consumer discretionary incomes.

We are optimistic about future earnings for certain companies within the Fund’s portfolio, and we believe that the combination of attractive valuations and strong fundamentals may create a favorable investment environment for the balance of 2003.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

Performance shown for the 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.

28

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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 Cap Growth Fund – Class A	(4.46	)	(42.57	)	(10.86	)	5.21	1.34	(39.05	)	(9.80	)	5.95
Wells Fargo Small Cap Growth Fund – Class B	(4.25	)	(42.61	)	(10.70	)	5.21	0.75	(39.59	)	(10.47	)	5.21
Wells Fargo Small Cap Growth Fund – Class C	(1.20	)	(40.83	)	(10.67	)	5.08	0.75	(39.61	)	(10.49	)	5.20
Wells Fargo Small Cap Growth Fund – Institutional Class								1.21	(39.03	)	(9.53	)	6.53
Benchmark
Russell 2000 Index								1.39	(26.96	)	(4.12	)	(1.80	)

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.42
Price to Earnings Ratio (trailing 12 months)	16.6	X
Median Market Cap. ($B)	0.5
Number of Holdings	106
Portfolio Turnover	122	%

** A measure of the Fund’s sensitivity to market movements. The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Kroll Incorporated	2.46%
Priority Healthcare Corporation	2.15%
Hollywood Entertainment Corporation	2.10%
Pharmaceutical Resources	2.06%
The Advisory Board Company	1.92%
Bankatlantic Bancorp Incorporated	1.83%
Integrated Circuit Systems	1.82%
Neurocrine Biosciences	1.76%
Micrel Incorporated	1.71%
Key Energy Services Incorporated	1.62%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 front-end sales charge is 1.00% and 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.

²   The Russell 2000 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 is 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 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%.

29

STOCK FUNDS PERFORMANCE HIGHLIGHTS

SMALL CAP OPPORTUNITIES FUND

INVESTMENT OBJECTIVE

The Wells Fargo Small Cap Opportunities Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Schroder Investment Management North America Inc.

FUND MANAGER

Jenny B. Jones

INCEPTION DATE

08/01/93

PERFORMANCE HIGHLIGHTS

The Fund returned 1.02%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the Russell 2000 Index², which returned 1.39%. The Fund distributed no dividend income and $1.32 per share in capital gains during the period.

October and November were strong months for the market, as investors reacted to positive news such as the Federal Reserve Board’s decision to reduce interest rates by half a percentage point. However, the rest of the six-month period was a roller coaster, as the war with Iraq loomed and the economy weakened.

Technology was a surprisingly resilient sector during the period, partly because shares in the sector have been depressed for such a long time. In addition, holdings in basic materials, such as Olin Corporation, and energy, such as Key Energy Services, were strong holdings for the Fund. In addition, shares of companies in a variety of miscellaneous industries performed well for the Fund, but not because any particular industry was strong. For example, one of the Fund’s holdings, Ruby Tuesday, an owner/operator of casual dining restaurants performed well due to strong earnings announcements, although restaurants as a whole saw mixed performance.

Fund holdings that were detractors from its performance included Copart, a provider of salvage vehicle auction services and Charles River Laboratories International, a provider of animal research used in drug development.

Toward the end of the period, the Fund added several positions in the financial services sector, including Platinum Underwriters Holdings, Reinsurance Group of America, Doral Financial (a diversified financial services company) and First Niagra Financial, a regional savings bank. These additions were made with an eye toward improving stock selection in the sector where the Fund had shown the weakest performance.

STRATEGIC OUTLOOK

The Fund’s position in technology is currently overweighted, since this is the sector showing the most promise in the event of an economic turnaround. More generally, small-capitalization stocks historically have performed well during times of economic recovery. Accordingly, we expect to focus on the smaller segment of the small cap market.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to the shareholders. Without these reductions, the Fund’s returns would have been lower.

30

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	Excluding Sales Charge
	6-Month*	1-Year		5-Year		Life of Fund
Wells Fargo Small Cap Opportunities Fund – Institutional Class	1.02	(24.59	)	1.21		12.84
Benchmark
Russell 2000 Index	1.39	(26.96	)	(4.12	)	6.05

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.00
Price to Earnings Ratio (trailing 12 months)	25.50	X
Price to Book Ratio	1.92	X
Median Market Cap. ($B)	1.10
Number of Holdings	99
Portfolio Turnover	60	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Regis Corporation	2.01%
Platinum Underwriters Holdings Limited	1.98%
Amphenol Corporation	1.86%
Commerce Bancshares Incorporated	1.79%
Ruby Tuesday Incorporated	1.63%
Symbol Technologies Incorporated	1.62%
Apria Healthcare Group	1.61%
Pnm Resources Incorporated	1.58%
Photon Dynamics Incorporated	1.57%
Reinsurance Group Of America	1.51%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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. Institutional Class shares are sold without sales charges.

²   The Russell 2000 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 is subject to change.

⁵   The chart compares the performance of the Wells Fargo Small Cap Opportunities Fund Institutional Class shares for the life of the Fund with the Russell 2000 Index. The chart assumes a hypothetical investment of $10,000 in Institutional Class shares and reflects all operating expenses.

31

STOCK FUNDS PERFORMANCE HIGHLIGHTS

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

Wells Fargo Funds Management, LLC

SUB-ADVISER

Peregrine Capital Management, Inc.

FUND MANAGERS

Robert B. Mersky, CFA

Paul E. von Kuster, CFA

Daniel J. Hagen, CFA

INCEPTION DATE

12/31/82

PERFORMANCE HIGHLIGHTS

The Fund’s Institutional Class shares returned 3.00%¹ for the six-month period ended March 31, 2003, outperforming the Russell 2000 Index², which returned 1.39%.

From December through March, the Fund’s performance reflected the strong earnings gains of the companies in its portfolio. This was in contrast to October and November, when the Fund’s relative performance was hampered by a surge in smaller and more speculative stocks which the Fund did not own.

Overall, a diverse group of companies from nearly every economic sector contributed positively to Fund performance during the six-month period. The common thread of each of these companies was strong earnings and attractive stock prices at the beginning of the period. Two examples include WebMD, a health care software and information provider, and Novellus Systems, a semiconductor equipment manufacturer.

The Fund’s weakest stocks during the period, in general, were impacted by company specific developments, which were viewed negatively by the market. Such was the case with Charming Shoppes, a specialty apparel retailer facing declining sales, and Americredit, a struggling consumer finance company.

STRATEGIC OUTLOOK

During early 2003, the stock market moved up and down in lockstep with the latest developments in the war with Iraq. Company fundamentals were almost ignored by the market, particularly during March when the conflict commenced. But with the war winding down, we believe that investors may once again focus on individual companies.

Going forward, we will continue to seek companies that are rapidly growing or that are emerging from periods of change and where there may be the potential for dramatic stock price appreciation. In general, we believe that the Fund’s current holdings include companies with the potential for strong earnings growth. At the same time, the overall stock market appears more reasonably priced than it has been in recent years.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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.

32

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	Excluding Sales Charge
	6-Month*	1-Year		5-Year		10-Year
Wells Fargo Small Company Growth Fund – Institutional Class	3.00	(29.92	)	(7.22	)	6.35
Benchmark
Russell 2000 Index	1.39	(26.96	)	(4.12	)	6.22

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.20
Price to Earnings Ratio (trailing 12 months)	19.0	X
Price to Book Ratio	2.3	X
Median Market Cap ($B)	0.90
Portfolio Turnover	79	%

** A measure of the Fund’s sensitivity to market movements.

The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Kroll Incorporated	1.60%
Ivax Corporation	1.56%
Lincare Holdings Incorporated	1.55%
J.B. Hunt Transport Services Incorporated	1.50%
W.R. Berkley Corporation	1.47%
NBTY Incorporated	1.45%
DSP Group Incorporated	1.38%
Pioneer Natural Resources	1.37%
Omnicare Incorporated	1.33%
Consolidated Freightways Incorporated	1.33%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

Performance shown for the Institutional Class shares of the Wells Fargo Small Company Growth 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 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. Institutional Class shares are sold without sales charges.

²   The Russell 2000 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 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.

⁴   Sector distribution is subject to change.

⁵   The chart compares the performance of the Wells Fargo Small Company Growth Fund Institutional Class shares for the most recent ten years with the Russell 2000 Index. The chart assumes a hypothetical investment of $10,000 in Institutional Class shares and reflects all operating expenses.

33

STOCK FUNDS PERFORMANCE HIGHLIGHTS

SMALL COMPANY VALUE FUND

INVESTMENT OBJECTIVE

The Wells Fargo Small Company Value Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Peregrine Capital Management, Inc.

FUND MANAGERS

Tasso H. Coin, Jr., CFA

Douglas G. Pugh, CFA

INCEPTION DATE

06/01/97

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 0.88%¹, excluding sales charges, for the six-month period ended March 31, 2003, outperforming the Russell 2000 Index², which returned 1.39% during the same period.

Technology stocks rallied strongly in the fourth quarter of 2002 after a poor showing in the prior quarter. We had purchased additional technology holdings for the Fund’s portfolio after the dramatic sell-off when many of these stocks were selling at valuations equivalent to just two times the net cash on their balance sheets. The result of this strategy allowed the Fund to fully capture the fourth quarter rally, making technology the top performing sector for the Fund for the six-month period.

In terms of individual stocks, Actel Corp., a technology company serving the defense industry, and Lone Star Technologies, a manufacturer of steel pipes used in the construction and completion of oil and natural gas wells, were among the Fund’s top performers. In addition, the energy sector was a positive area of investment for the Fund.

In contrast, consumer staples had the greatest negative impact on Fund performance during the period, with Interstate Bakeries reporting disappointing earnings, and Pathmark Stores experiencing strong price competition from a rival grocer. In addition, three hotel real estate investment trusts held by the Fund underperformed due to reduced business travel attributed to the Iraq war. Finally, another Fund holding, Crompton Corp., a chemicals manufacturer, saw its share price decline dramatically as the national economy weakened.

STRATEGIC OUTLOOK

Small cap value stocks rallied strongly at the conclusion of the Persian Gulf War in 1991. We believe that the present economic environment similarly offers an attractive entry point into small cap value investments. Our strategy of investing in value style stocks may benefit Fund performance in the future if stocks experience a rally similar to the one they experienced after the Gulf War.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower. 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. 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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charges assumes the maximum sales charge for the corresponding time period.

34

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	(Including Sales Charge)							(Excluding Sales Charge)
	6-Month*		1-Year		5-Year		Life of Fund	6-Month*	1-Year		5-Year		Life of Fund
Class A	(4.92	)	(30.54	)	(0.77	)	4.86	0.88	(26.31	)	0.41		5.93
Class B	(4.35	)	(30.50	)	(0.73	)	5.01	0.65	(26.85	)	(0.33	)	5.15
Class C	(1.47	)	(28.39	)	(0.56	)	4.95	0.53	(26.94	)	(0.36	)	5.13
Institutional Class								1.00	(26.20	)	0.57		6.10
Benchmark
Russell 2000 Index								1.39	(26.96	)	(4.12	)	(1.80	)

* Returns for periods of less than one year are not annualized.

CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.93
Price to Earnings Ratio (trailing 12 months)	12.6	X
Price to Book Ratio	1.2	X
Median Market Cap ($B)	0.5
Portfolio Turnover	37	%

** A measure of the Fund’s sensitivity to market movements.  The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Amerigroup Corporation	2.08%
Lone Star Technologies	1.69%
Energen Corporation	1.54%
Intergraph Corporation	1.50%
CBL & Associates Properties Incorporated	1.45%
Actel Corporation	1.45%
Brookline Bancorp Incorporated	1.44%
Technitrol Incorporated	1.38%
H B Fuller Company	1.37%
Harleysville Group Incorporated	1.32%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

²   The Russell 2000 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 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.

⁴   Sector distribution is subject to change.

⁵   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 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

STOCK FUNDS PERFORMANCE HIGHLIGHTS

SPECIALIZED HEALTH SCIENCES FUND

INVESTMENT OBJECTIVE

The Wells Fargo Specialized Health Sciences Fund (the Fund) seeks long-term capital appreciation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Dresdner RCM Global Investors LLC

FUND MANAGERS

Michael Dauchot, M.D. is the lead portfolio manager and is supported by Dresdner RCM Global Investors LLC’s Health Care Team.

INCEPTION DATE

04/02/01

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 4.99%¹ for the six-month period ended March 31, 2003, excluding sales charges, underperforming the S&P 500 Index², which returned 5.00%. The Fund distributed no dividend income and no capital gains during the period.

Overall, the war in Iraq and recession fears made health care stocks relatively more attractive during the period, since the group is not considered economically sensitive. However, more volatile sub-sectors, such as biotechnology, fluctuated dramatically depending on how well the war was perceived to be progressing. In addition, hospital management companies experienced a significant decline in the wake of a Medicare fraud scandal at Tenet Healthcare. This controversy cast a shadow over the entire sub-sector, and hurt our investments in the group.

On the plus side, the strong performer for the Fund was the specialty pharmaceuticals area, which includes companies featuring generic as well as emerging products. A significant contributor to the Fund’s performance, particularly during early 2003, was Biovail, an emerging drug company which received FDA approval for its lead anti-hypertension drug. In the medical products area, St. Jude Medical provided the Fund with a good return, largely based on the strength of its strong earnings and favorable clinical results for its most important product, an implantable cardiac defibrillator.

STRATEGIC OUTLOOK

The outlook for the health care sector is strong, particularly in biotechnology, where many companies are scheduled to release positive data on drugs under development. In addition, the generic drug area remains promising, as more branded drugs’ patents expire, and as the cost conscious health care market shows an increased appetite for generic versions of previously branded drugs. At this time, we are neutral on the large-cap pharmaceutical stocks as well as health care service companies, each of which present concerns regarding earnings growth and possible negative political pressures leading up to the 2004 elections.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charge assumes the maximum sales charge for the corresponding time period.

36

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	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	(1.04	)	(24.23	)	(12.07	)	4.99	(19.61	)	(9.43	)
Wells Fargo Specialized Health Sciences Fund – Class B	(0.34	)	(24.15	)	(11.46	)	4.66	(20.16	)	(10.10	)
Wells Fargo Specialized Health Sciences Fund – Class C	2.62		(21.65	)	(10.49	)	4.66	(20.06	)	(10.04	)
Benchmark
S&P 500 Index							5.00	(24.76	)	(13.15	)

* Returns for periods of less than one year are not annualized.

FUND CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	0.83
Price to Earnings Ratio (trailing 12 months)	28.9	X
Price to Book Ratio	4.2	X
Median Market Cap. ($B)	5.8
Number of Holdings	50
Portfolio Turnover	84	%

** A measure of the Fund’s sensitivity to market movements.  The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Pharmacia Corporation	5.23%
Wyeth	4.48%
Pfizer Incorporated	4.32%
Amgen Incorporated	4.20%
Merck & Co. Incorporated	4.14%
Johnson & Johnson	4.10%
Medtronic Incorporated	4.05%
AmerisourceBergen Corporation	3.70%
Gilead Sciences Incorporated	3.14%
Abbott Laboratories	3.07%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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. The Fund is a professionally managed mutual fund. 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   Sector distribution is 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%.

37

STOCK FUNDS PERFORMANCE HIGHLIGHTS

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

Wells Fargo Funds Management, LLC

SUB-ADVISER

Dresdner RCM Global Investors LLC

FUND MANAGERS

Walter C. Price, Jr., CFA serves as the lead portfolio manager and is supported by the Dresdner RCM Global Investors LLC’s Technology Research Team.

INCEPTION DATE

09/18/00

PERFORMANCE HIGHLIGHTS

The Fund’s Class A shares returned 9.42%¹ for the six-month period ended March 31, 2003, excluding sales charges, outperforming the S&P 500 Index², which returned 5.00%. The Fund distributed no dividend income and no capital gains during the period.

The technology sector was one of the top performing groups during the six-month period and the Fund’s performance benefited from the trend. The rebound began after the third quarter of 2002, when corporate profit results were better than expected. In addition, the November election propelled the group as the prospects of passage of a large stimulus bill improved significantly.

In particular, Internet stocks such as Yahoo (online information), eBay (online auctions) and Expedia (online travel) performed well for the Fund during the six-month period. These companies are among the few that survived the dot.com bubble of the late 1990s, and have since thrived as the Internet increasingly becomes as easy to use and as familiar as the telephone and the personal computer. In addition, the Fund established positions in three leading Internet companies in China, where the development of media companies has lagged the rest of the world.

On the negative side, software, industrial technology and other economically sensitive areas performed poorly. As a result, we eliminated many of these stocks and concentrated our holdings in the few companies where we have strong convictions, since we believe that their business has only been delayed by the uncertainty of war.

STRATEGIC OUTLOOK

In recent weeks, the tax package proposed by the Bush Administration has been sidetracked by the war effort in Iraq. Nevertheless, we are generally optimistic about technology because we believe that corporate spending is likely to recover after nearly four years of reduced spending. We expect to see investments in new generations of personal computers and cell phones with cameras and Internet access. Meanwhile, we remain under-represented in the hardware and semiconductor sectors, which we believe may take longer to recover than the market generally.

¹   Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Adviser has committed through January 31, 2004 to waive fees and/or reimburse expenses to the extent necessary to maintain a certain net operating expense ratio for the Fund. Actual reductions of operating expenses can increase total return to shareholders. Without these reductions, the Fund’s returns would have been lower.

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 front-end sales charge is 1.00% and the maximum CDSC is 1.00%. Performance including sales charge assumes the maximum sales charge for the corresponding time period.

38

PERFORMANCE HIGHLIGHTS STOCK FUNDS

AVERAGE ANNUAL TOTAL RETURN¹ (%) (AS OF MARCH 31, 2003)

	Including Sales Charge					Excluding Sales Charge
	6-Month*	1-Year		Life of Fund		6-Month*	1-Year		Life of Fund
Class A	2.95	(39.45	)	(44.04	)	9.42	(35.79	)	(42.72	)
Class B	4.59	(39.20	)	(43.77	)	9.59	(36.00	)	(43.09	)
Class C	7.61	(37.31	)	(43.32	)	9.59	(36.00	)	(43.09	)
Benchmark
S&P 500 Index						5.00	(24.76	)	(18.98	)

* Returns for periods of less than one year are not annualized.

FUND CHARACTERISTICS (AS OF MARCH 31, 2003)
Beta**	1.39
Price to Earnings Ratio (trailing 12 months)	39.9	X
Price to Book Ratio	2.7	X
Median Market Cap. ($B)	5.7
Number of Holdings	65
Portfolio Turnover	120	%

** A measure of the Fund’s sensitivity to market movements.  The benchmark beta is 1.00 by definition.

TEN LARGEST EQUITY HOLDINGS3 (AS OF MARCH 31, 2003)
Microsoft Corporation	5.52%
Yahoo Japan Corporation	4.77%
Hewlett-Packard Company	4.45%
Intel Corporation	4.16%
Ebay Incorporated	4.15%
Alcatel SA	3.99%
Utstarcom Incorporated	3.79%
Amdocs Limited	3.67%
Usa Networks Incorporated	3.13%
Marvell Technology Group	2.62%

SECTOR DISTRIBUTION⁴ (AS OF MARCH 31, 2003)

GROWTH OF $10,000 INVESTMENT⁵

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 securities divided by total market value of the portfolio.

⁴   Sector distribution is 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%.

39

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

DIVERSIFIED EQUITY FUND

Face/Share Amount	Security Description	Value
N/A	Disciplined Growth Portfolio	$	28,360,924
N/A	Income Equity Portfolio		280,483,064
N/A	Index Portfolio		281,294,313
N/A	International Equity Portfolio		164,772,906
N/A	Large Cap Appreciation Port		28,250,707
N/A	Large Company Growth Portfolio		225,493,910
N/A	Small Cap Index Portfolio		35,909,614
N/A	Small Cap Value Portfolio		5,149,061
N/A	Small Company Growth Portfolio		36,000,013
N/A	Small Company Value Portfolio		35,828,577

Total Investment In Master Portfolio – Cost $1,036,347,546)				1,121,543,089
Total Investment In Master Portfolio (Cost $1,036,347,546)	99.90	%	$	1,121,543,089
Other Assets And Liabilities, Net	0.10	%		1,067,008
Total Net Assets	100.00	%	$	1,122,610,097

The accompanying notes are an integral part of these financial statements.

40

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

DIVERSIFIED SMALL CAP FUND

Face/Share Amount	Security Description	Value
N/A	Small Company Growth Portfolio	$	66,362,955
N/A	Small Company Value Portfolio		66,036,863
N/A	Small Cap Index Portfolio		66,000,258

Total Investment In Master Portfolio – (Cost $214,506,447)				198,400,077
Total Investment In Master Portfolio (Cost $214,506,447)	99.62	%	$	198,400,077
Other Assets And Liabilities, Net	0.38	%		756,795
Total Net Assets	100.00	%	$	199,156,872

The accompanying notes are an integral part of these financial statements.

41

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INCOME FUND

Face/Share Amount	Security Description	Value
N/A	Income Equity Portfolio	$	1,010,094,325

Total Investment In Master Portfolio (Cost $1,250,925,966)				1,010,094,325
Total Investment In Master Portfolio (Cost $1,250,925,966)	99.99	%	$	1,010,094,325
Other Assets And Liabilities, Net	0.01	%		80,388
Total Net Assets	100.00	%	$	1,010,174,713

The accompanying notes are an integral part of these financial statements.

42

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Common Stock – 97.60%
Amusement & Recreation Services – 0.05%
4,475	Harrah’s Entertainment	$	159,758
Apparel & Other Finished Products Made From Fabrics & Similar Materials – 0.14%
5,159	Jones Apparel Group Incorporated		141,511
4,277	Liz Claiborne Incorporated†		132,245
4,350	Vf Corporation†		163,691
			437,447
Apparel & Accessory Stores – 0.51%
35,389	Gap Incorporated†		512,787
13,500	Kohls Corporation		763,830
20,945	Limited Brands Incorporated		269,562
5,422	Nordstrom Incorporated†		87,836
			1,634,015
Automotive Dealers & Gasoline Service Stations – 0.13%
11,606	Autonation Incorporated		147,977
3,899	Autozone Incorporated		267,900
			415,877
Automotive Repair, Services, & Parking – 0.02%
2,502	Ryder System Incorporated†		51,316
Building Construction – General Contractors & Operative Builders – 0.11%
2,471	Centex Corporation†		134,324
1,917	KB Home†		87,128
2,450	Pulte Homes Incorporated†		122,867
			344,319
Building Materials, Hardware, Garden Supply & Mobile Home Dealers – 1.15%
93,117	Home Depot Incorporated†		2,268,330
31,267	Lowe’s Companies Incorporated†		1,276,319
6,000	Sherwin-Williams Company†		158,580
			3,703,229
Business Services – 7.56%
9,251	Adobe Systems Incorporated†		285,208
178,973	AOL Time Warner Incorporated		1,943,647
4,540	Autodesk Incorporated†		69,280
24,006	Automatic Data Processing†		739,145
9,340	Bmc Software Incorporated		140,941
41,243	Cendant Corporation		523,786
6,847	Citrix Systems Incorporated		90,107
23,009	Computer Associates International†		314,303
7,495	Computer Sciences Corporation		243,962
15,136	Compuware Corporation		51,311

43

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
Business Services (continued)
20,368	Concord Efs Incorporated	$	191,459
6,948	Convergys Corporation		91,714
2,471	Deluxe Corporation†		99,161
12,360	Ebay Incorporated		1,054,184
5,729	Electronic Arts Incorporated		335,949
19,073	Electronic Data Systems†		335,685
5,695	Equifax Incorporated†		113,843
30,113	First Data Corporation†		1,114,482
7,661	Fiserv Incorporated		241,168
9,784	IMS Health Incorporated†		152,728
15,440	Interpublic Group Cos Incorporated†		143,592
8,235	Intuit Incorporated		306,342
3,381	Mercury Interactive Corporation		100,348
428,457	Microsoft Corporation†		10,372,944
3,906	NCR Corporation		71,636
14,743	Novell Incorporated		31,697
7,529	Omnicom Group Incorporated†		407,846
210,962	Oracle Corporation		2,288,727
10,513	Parametric Technology		22,813
12,531	Peoplesoft Incorporated		191,724
6,938	Robert Half International Incorporated		92,345
19,400	Siebel Systems Incorporated		155,394
127,916	Sun Microsystems Incorporated		417,006
11,336	Sungard Data Systems Incorporated		241,457
5,914	Symantec Corporation		231,711
4,451	TMP Worldwide Incorporated		47,759
13,060	Unisys Corporation		120,936
16,479	Veritas Software Corporation		289,701
23,658	Yahoo Incorporated		568,265
			24,234,306
Chemicals & Allied Products – 13.24%
62,595	Abbott Laboratories Incorporated†		2,354,198
9,097	Air Products & Chemicals†		376,889
2,338	Alberto-Culver Company†		115,217
51,530	Amgen Incorporated		2,965,552
4,396	Avery Dennison Corporation†		257,913
9,422	Avon Products Incorporated†		537,525
5,968	Biogen Incorporated		178,801
77,554	Bristol-Myers Squibb Company†		1,638,716
7,486	Chiron Corporation		280,725
8,809	Clorox Company†		406,712
21,550	Company Lgate-Palmolive Company†		1,173,182
36,478	Dow Chemical Company†		1,007,158
39,825	Du Pont (E.I.) De Nemours†		1,547,600
3,095	Eastman Chemical Company†		89,724

44

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Chemicals & Allied Products (continued)
5,210	Ecolab Incorporated†	$	257,009
44,977	Eli Lilly & Company†		2,570,436
14,533	Forest Laboratories Incorporated		784,346
8,590	Genzyme Corporation		313,106
41,808	Gillette Company†		1,293,536
2,009	Great Lakes Chemical Corporation†		44,600
3,777	Internationall Flavors & Fragrances†		117,427
9,639	King Pharmaceuticals Incorporated		114,993
10,070	Medimmune Incorporated		330,598
89,906	Merck & Company Incorporated†		4,925,051
246,718	Pfizer Incorporated†		7,687,733
51,765	Pharmacia Corporation†		2,241,425
6,786	PPG Industries Incorporated†		305,913
6,474	Praxair Incorporated†		364,810
51,764	Procter & Gamble Company†		4,609,584
8,852	Rohm & Haas Company†		263,613
58,720	Schering-Plough Corporation†		1,046,978
2,870	Sigma-Aldrich†		127,686
4,281	Watson Pharmaceuticals		123,164
53,075	Wyeth†		2,007,297
			42,459,217
Communications – 4.73%
12,452	Alltel Corporation†		557,352
30,844	AT&T Corporation†		499,672
108,463	AT&T Wireless Services		715,856
14,922	Avaya Incorporated		30,441
74,509	Bellsouth Corporation†		1,614,610
5,709	Centurytel Incorporated†		157,568
24,532	Clear Channel Comm		832,125
92,406	Comcast Corporation		2,641,888
38,560	Nextel Communications Incorporated		516,318
67,877	Qwest Communications Internationall		236,891
132,932	SBC Communications Incorporated†		2,666,616
35,815	Sprint Corporation (Fon Group)†		420,826
40,000	Sprint Corporation (Pcs Group)		174,400
9,172	Univision Communications		224,806
109,533	Verizon Communications†		3,871,992
			15,161,361
Depository Institutions – 10.02%
14,229	Amsouth Ban Corporation†		282,873
60,151	Bank Of America Corporation†		4,020,493
30,680	Bank Of New York Co Incorporated†		628,940
46,605	Bank One Corporation†		1,613,465
18,855	BB&T Corporation†		592,613

45

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
Depository Institutions (continued)
9,048	Charter One Financial Incorporated†	$	250,268
205,820	Citigroup Incorporated†		7,090,499
6,995	Comerica Incorporated†		264,971
23,133	Fifth Third Ban Corporation†		1,159,889
5,027	First Tennessee Natl Corporation†		199,622
42,022	Fleetboston Finl Corporation†		1,003,485
6,143	Golden West Finl Corporation†		441,866
9,430	Huntington Bancshares Incorporated†		175,304
79,935	JP Morgan Chase & Company†		1,895,259
17,011	Key Corporation†		383,768
8,742	Marshall & Ilsley Corporation†		223,446
17,253	Mellon Financial Corporation†		366,799
24,482	National City Corporation†		681,824
6,465	North Fork Bancorporation†		190,394
8,845	Northern Trust Corporation†		269,330
11,370	PNC Finl Services Group†		481,861
8,853	Regions Financial Corporation†		286,837
13,831	Southtrust Corporation†		353,105
13,299	State Street Corporation†		420,647
11,305	Suntrust Banks Incorporated†		595,208
12,194	Synovus Financial Corporation†		218,151
7,932	Union Planters Corporation†		208,532
76,694	US Ban Corporation†		1,455,652
54,463	Wachovia Corporation†		1,855,554
37,902	Washington Mutual Incorporated†		1,336,804
67,739	Wells Fargo & Company†		3,047,578
3,640	Zions Bancorporation†		155,719
			32,150,756
Eating & Drinking Places – 0.40%
6,843	Darden Restaurants Incorporated†		122,148
50,820	Mcdonald’S Corporation†		734,857
4,620	Wendy’S Internationall Incorporated†		127,096
11,832	Yum! Brands Incorporated		287,873
			1,271,974
Educational Services – 0.11%
6,979	Apollo Group Incorporated		348,252
Electronic & Other Electrical Equipment & Components, Except Computer Equipment – 7.12%
32,098	ADC Telecommunications		66,122
13,751	Advanced Micro Devices		84,981
15,315	Altera Corporation		207,365
7,851	American Power Conversion		111,798
14,582	Analog Devices Incorporated		401,005
3,936	Andrew Corporation		21,648
12,157	Applied Micro Circuits		39,632

46

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Electronic & Other Electrical Equipment & Components, Except Computer Equipment (continued)
11,044	Broadcom Corporation	$	136,393
17,355	Ciena Corporation		75,841
7,516	Comverse Technology Incorporated		85,006
3,733	Cooper Industries Incorporated†		133,305
16,852	Emerson Electric Company†		764,238
398,416	General Electric Company†		10,159,608
265,248	Intel Corporation†		4,318,237
56,666	JDS Uniphase Corporation		161,498
12,526	Linear Technology Corporation†		386,678
14,888	LSI Logic Corporation		67,294
156,592	Lucent Technologies Incorporated		230,190
12,936	Maxim Integrated Products†		467,248
3,124	Maytag Corporation†		59,450
24,326	Micron Technology Incorporated		198,014
7,678	Molex Incorporated†		164,923
92,125	Motorola Incorporated†		760,953
7,274	National Semiconductor		123,949
13,586	Network Appliance Incorporated		152,027
5,988	Novellus Systems Incorporated		163,293
6,312	Nvidia Corporation		81,109
6,703	PMC – Sierra Incorporated		39,883
3,199	Power-One Incorporated		14,076
3,756	QLogic Corporation		139,498
31,585	Qualcomm Incorporated†		1,138,955
20,393	Sanmina-Sci Corporation		82,388
6,120	Scientific-Atlanta Incorporated†		84,089
16,495	Tellabs Incorporated		95,506
69,305	Texas Instruments Incorporated†		1,134,523
2,334	Thomas & Betts Corporation		33,096
2,730	Whirlpool Corporation†		133,852
13,509	Xilinx Incorporated		316,246
			22,833,917
Electric, Gas, & Sanitary Services – 3.00%
21,772	AES Corporation		78,815
5,032	Allegheny Energy Incorporated		31,249
7,894	Allied Waste Industries		63,073
6,370	Ameren Corporation†		248,749
15,568	American Electric Power†		355,729
15,134	Calpine Corporation		49,942
12,184	Centerpoint Energy Incorporated†		85,897
6,739	Cinergy Corporation†		226,767
11,299	Citizens Communications		112,764
5,768	CMS Energy Corporation†		25,437
8,552	Consolidated Edison†		328,995
6,595	Constellation Energy†		182,879

47

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
Electric, Gas, & Sanitary Services (continued)
12,300	Dominion Resources Incorporated†	$	681,051
6,704	DTE Energy Company†		259,110
35,697	Duke Energy Corporation†		519,034
14,868	Dynegy Incorporated†		38,805
13,044	Edison International		178,572
23,981	El Paso Corporation†		145,085
8,888	Entergy Corporation†		427,957
12,931	Exelon Corporation†		651,852
11,916	Firstenergy Corporation†		375,354
7,307	FPL Group Incorporated†		430,602
6,263	Keyspan Corporation†		201,982
4,881	Kinder Morgan Incorporated†		219,645
16,171	Mirant Corporation		25,874
1,762	Nicor Incorporated†		48,138
9,963	Nisource Incorporated†		181,327
1,429	Peoples Energy Corporation†		51,115
16,318	PG&E Corporation		219,477
3,619	Pinnacle West Cap Corporation†		120,296
6,584	PPL Corporation†		234,456
9,496	Progress Energy Incorporated†		371,768
8,905	Public Service Enterprise†		326,724
8,250	Sempra Energy†		205,920
28,565	Southern Co Incorporated†		812,389
7,032	Teco Energy Incorporated†		74,750
12,897	TXU Corporation†		230,211
23,820	Waste Management Incorporated†		504,508
20,686	Williams Cos Incorporated†		94,742
15,963	Xcel Energy Incorporated†		204,486
			9,625,526
Engineering, Accounting, Research Management & Related Services – 0.51%
3,216	Fluor Corporation – New†		108,315
17,472	Halliburton Company†		362,196
10,466	Monsanto Company†		171,642
6,049	Moody’S Corporation†		279,645
15,065	Paychex Incorporated†		413,836
4,211	Quest Diagnostics Incorporated		251,355
4,724	Quintiles Transnational		57,444
			1,644,431
Fabricated Metal Products, Except Machinery & Transportation Equipment – 0.76%
2,275	Ball Corporation†		126,718
2,383	Crane Company†		41,512
5,975	Fortune Brands Incorporated†		256,147
12,308	Illinois Tool Works†		715,710
18,245	Lockheed Martin Corporation†		867,550

48

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Fabricated Metal Products, Except Machinery & Transportation Equipment (continued)
19,698	Masco Corporation†	$	366,777
2,327	Snap-On Incorporated†		57,617
			2,432,031
Food & Kindred Products – 4.13%
99,257	Company Ca – Company La Company †		4,017,923
1,453	Adolph Coors Company†		70,471
34,268	Anheuser-Busch Cos Incorporated†		1,597,231
25,849	Archer-Daniels-Midland Company†		279,169
16,431	Campbell Soup Company†		345,051
17,992	Coca-Cola Enterprises Incorporated†		336,270
21,498	Conagra Foods Incorporated†		431,680
14,764	General Mills Incorporated†		672,500
14,067	Heinz (H J) Company†		410,756
4,372	Hercules Incorporated		38,036
5,450	Hershey Foods Corporation†		341,499
16,345	Kellogg Company†		500,974
5,609	Mc Company Rmick & Company, Incorporated†		135,401
11,228	Pepsi Bottling Group Incorporated†		201,318
69,146	Pepsico Incorporated†		2,765,840
31,337	Sara Lee Corporation†		586,002
9,016	Wrigley (Wm ) Jr Company†		509,404
			13,239,525
Food Stores – 0.36%
15,180	Albertson’s Incorporated†		286,143
30,555	Kroger Company		401,798
15,518	Starbucks Corporation		399,744
5,638	Winn-Dixie Stores Incorporated†		74,534
			1,162,219
Forestry – 0.13%
8,767	Weyerhaeuser Corporation†		419,326
Furniture And Fixtures – 0.26%
3,562	Johnson Controls Incorporated†		258,031
7,792	Leggett & Platt Incorporated†		142,438
10,703	Newell Rubbermaid Incorporated†		303,430
7,186	Rockwell Collins†		132,007
			835,906
General Merchandise Stores – 3.76%
4,650	Big Lots Incorporated		52,313
3,390	Dillards Incorporated†		43,799
13,344	Dollar General Corporation†		162,930
6,885	Family Dollar Stores Incorporated†		212,609
7,615	Federated Dept Stores		213,371

49

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
General Merchandise Stores (continued)
10,742	JC Penney Co Incorporated (Holding†	$	210,973
11,540	May Department Stores Company†		229,531
12,664	Sears Roebuck & Company†		305,836
36,385	Target Corporation†		1,064,625
21,034	TJX Companies Incorporated†		370,198
176,724	Wal-Mart Stores Incorporated†		9,194,950
			12,061,135
Health Services – 0.44%
20,546	HCA Incorporated†		849,783
9,556	Health Management Assoc†		181,564
3,857	Manor Care Incorporated		74,170
18,967	Tenet Healthcare Corporation		316,749
			1,422,266
Heavy Construction Other Than Building Construction Contracts – 0%
2,552	McDermott Internationall Incorporated		7,401
Home Furniture, Furnishings, And Equipment Stores – 0.30%
11,772	Bed Bath & Beyond Incorporated		406,605
12,881	Best Buy Company Incorporated		347,401
8,428	Circuit City Stores†		43,826
6,743	Radioshack Corporation†		150,301
			948,133
Holding & Other Investment Offices – 0.39%
3,755	Apartment Investment & Management Company†		136,982
16,482	Equity Office Properties†		419,467
10,844	Equity Residential†		261,015
7,401	Plum Creek Timber Company†		159,788
7,384	Simon Property Group Incorporated†		264,569
			1,241,821
Hotels, Rooming Houses, Camps, & Other Lodge Places – 0.21%
15,066	Hilton Hotels Corporation†		174,915
9,360	Marriott Internationall Incorporated†		297,742
7,997	Starwood Hotels & Resorts†		190,249
			662,906
Industrial & Commercial Machinery & Computer Equipment – 7.04%
15,622	3M Company†		2,031,329
2,901	American Standard Cos		199,502
14,432	Apple Computer Incorporated		204,068
66,074	Applied Materials Incorporated		831,211
13,488	Baker Hughes Incorporated†		403,696
3,146	Black & Decker Corporation†		109,670
13,780	Caterpillar Incorporated†		677,976

50

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Industrial & Commercial Machinery & Computer Equipment (continued)
284,741	Cisco Systems Incorporated	$	3,673,159
1,661	Cummins Incorporated†		40,861
9,579	Deere & Company†		376,072
103,265	Dell Computer Corporation		2,820,167
8,100	Dover Corporation†		196,182
2,822	Eaton Corporation†		197,399
88,074	EMC Corporation		636,775
12,974	Gateway Incorporated		30,619
122,210	Hewlett-Packard Company†		1,900,363
67,667	IBM Corporation†		5,307,123
6,778	Ingersoll-Rand Company – Cl A†		261,563
3,401	Internationall Game Technology		278,542
7,934	Jabil Circuit Incorporated		138,845
5,041	Lexmark International Incorporated		337,495
4,923	Pall Corporation†		98,460
4,729	Parker Hannifin Corporation†		183,201
9,470	Pitney Bowes Incorporated†		302,282
33,079	Solectron Corporation		99,899
3,533	Stanley Works†		84,757
9,231	Symbol Technologies Incorporated†		79,479
18,832	United Technologies Corporation†		1,088,113
			22,588,808
Insurance Carriers – 5.01%
10,515	ACE Limited†		304,409
6,027	Aetna Incorporated – New†		297,131
20,666	Aflac Incorporated†		662,345
28,144	Allstate Corporation†		933,536
4,243	Ambac Financial Group Incorporated†		214,356
104,441	American Internationall Group†		5,164,607
5,663	Anthem Incorporated		375,174
6,848	Chubb Corporation†		303,503
5,588	Cigna Corporation†		255,483
6,465	Cincinnati Financial Corporation†		226,728
10,225	Hartford Financial Svcs†		360,841
5,744	Jefferson-Pilot Corporation†		221,029
11,535	John Hancock Financial†		320,442
7,088	Lincoln National Corporation†		198,464
7,424	Loews Corporation†		295,772
5,809	Mbia Incorporated†		224,460
28,037	Metlife Incorporated†		739,616
4,022	MGIC Investment Corporation†		157,944
12,822	PR Incorporated Ipal Financial Group†		347,989
8,718	Progressive Corporation†		517,065
22,666	Prudential Financial Incorporated†		662,981
5,533	Safeco Corporation†		193,489

51

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
Insurance Carriers (continued)
9,067	St Paul Cos Incorporated†	$	288,331
4,741	Torchmark Corporation†		169,728
40,280	Travelers Prop Casualty-B†		568,351
12,189	Unitedhealth Group Incorporated†		1,117,366
9,669	Unumprovident Corporation†		94,756
5,955	Wellpoint Health Networks		457,046
5,438	XL Capital Limited – Class A†		384,902
			16,057,844
Insurance Agents, Brokers And Service – 0.39%
12,402	AON Corporation†		256,473
6,496	Humana Incorporated		62,362
21,502	Marsh & Mclennan Cos Incorporated†		916,630
			1,235,465
Lumber & Wood Products, Except Furniture – 0.05%
10,011	Georgia-Pacific Group†		139,153
4,187	Louisiana-Pacific Corporation		33,203
			172,356
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 2.81%
18,698	Agilent Technologies Incorporated		245,879
5,181	Allergan Incorporated†		353,396
8,385	Applied Biosystems Group – App†		132,735
2,066	Bard (C R ) Incorporated†		130,282
2,135	Bausch & Lomb Incorporated†		70,220
23,753	Baxter Internationall Incorporated†		442,756
10,197	Becton Dickinson & Company†		351,185
10,367	Biomet Incorporated†		317,749
16,328	Boston Scientific Corporation		665,529
6,102	Danaher Corporation†		401,268
11,681	Eastman Kodak Company†		345,758
12,285	Guidant Corporation		444,715
7,615	KLA-Tencor Corporation		273,698
48,826	Medtronic Incorporated†		2,203,029
1,937	Millipore Corporation		63,340
5,058	Perkinelmer Incorporated†		44,966
16,250	Raytheon Company†		461,013
7,433	Rockwell Automation Incorporated†		153,863
7,109	St Jude Medical Incorporated		346,564
7,925	Stryker Corporation†		544,051
3,480	Tektronix Incorporated		59,682
7,330	Teradyne Incorporated		85,321
6,546	Thermo Electron Corporation		118,483
5,170	Waters Corporation		109,397
29,439	Xerox Corporation		256,119
7,808	Zimmer Holdings Incorporated		379,703
			9,000,701

52

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Metal Mining – 0.20%
5,801	Freeport-Mcmoran C & G	$	98,908
16,083	Newmont Mining Corporation†		420,570
3,559	Phelps Dodge Corporation		115,596
			635,074
Mining & Quarrying Of Nonmetallic Minerals, Except Fuels – 0.04%
4,064	Vulcan Materials Company†		122,855
Miscellaneous Manufacturing Industries – 0.52%
6,933	Hasbro Incorporated†		96,298
17,506	Mattel Incorporated†		393,887
5,811	Tiffany & Company†		145,275
79,918	Tyco International Limited†		1,027,745
			1,663,205
Miscellaneous Retail – 0.84%
18,249	Costco Wholesale Corporation		548,017
15,732	CVS Corporation†		375,208
12,354	Office Depot Incorporated		146,148
18,950	Staples Incorporated		347,354
8,505	Toys R Us Incorporated		71,187
41,034	Walgreen Company†		1,209,682
			2,697,596
Motion Pictures – 0.43%
81,771	Walt Disney Company†		1,391,742
Motor Freight Transportation & Warehousing – 0.80%
44,996	United Parcel Service Incorporated†		2,564,772
Non-Depository Credit Institutions – 2.47%
52,622	American Express Company†		1,748,629
8,883	Capital One Financial†		266,579
5,059	Countrywide Financial†		290,893
27,854	FHLMS†		1,479,047
39,837	FNMA†		2,603,348
51,154	MBNA Corporation†		769,868
11,572	Providian Financial Corporation		75,912
6,147	SLM Corporation†		681,825
			7,916,101
Oil & Gas Extraction – 1.31%
9,954	Anadarko Petroleum Corporation†		452,907
6,400	Apache Corporation†		395,155
6,317	BJ Services Company		217,242
8,060	Burlington Resources Incorporated†		384,543
6,272	Devon Energy Corporation†		302,436
4,625	Eog Resources Incorporated†		182,963

53

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
Oil & Gas Extraction (continued)
4,018	Kerr-Mcgee Corporation†	$	163,171
5,794	Nabors Industries Limited		231,007
5,358	Noble Corporation		168,348
15,131	Occidental Petroleum Corporation†		453,325
3,745	Rowan Companies Incorporated		73,627
23,310	Schlumberger Limited†		886,013
12,780	Transocean Incorporated		261,351
			4,172,088
Paper & Allied Products – 0.66%
2,119	Bemis Company Incorporated†		89,125
2,333	Boise Cascade Corporation†		50,976
19,170	International Paper Company†		647,946
20,593	Kimberly-Clark Corporation†		936,158
8,013	Meadwestvaco Corporation†		182,536
6,344	Pactiv Corporation		128,783
2,150	Temple-Inland Incorporated†		80,410
			2,115,934
Personal Services – 0.17%
6,818	Cintas Corporation†		224,312
7,152	H & R Block Incorporated†		305,319
			529,631
Petroleum Refining & Related Industries – 4.54%
3,571	Amerada Hess Corporation†		158,052
2,732	Ashland Incorporated†		81,058
42,766	Chevrontexaco Corporation†		2,764,822
27,098	Conocophillips†		1,452,453
269,408	Exxon Mobil Corporation†		9,415,810
12,498	Marathon Oil Corporation†		299,577
3,055	Sunoco Incorporated†		111,721
10,325	Unocal Corporation†		271,651
			14,555,144
Primary Metal Industries – 0.3%
33,828	Alcoa Incorporated†		655,587
3,228	Allegheny Technologies†		9,361
5,116	Engelhard Corporation†		109,585
3,129	Nucor Corporation†		119,434
4,095	United States Steel Corporation†		40,254
3,438	Worthington Industries†		41,015
			975,236
Printing, Publishing, & Allied Industries – 1.58%
2,636	American Greetings		34,532

54

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Printing, Publishing, & Allied Industries (continued)
3,279	Dow Jones & Company Incorporated†	$	116,204
10,700	Gannett Company Incorporated†		753,603
3,267	Knight Ridder Incorporated†		191,120
7,759	Mcgraw-Hill Companies Incorporated†		431,323
1,992	Meredith Corporation†		76,055
6,058	New York Times Company†		261,403
4,537	RR Donnelley & Sons Company†		83,118
12,203	Tribune Company†		549,257
70,510	Viacom Incorporated		2,575,025
			5,071,640
Railroad Transportation – 0.46%
15,010	Burlington No Santa Fe†		373,749
8,595	CSX Corporation†		245,129
15,576	Norfolk Southern Corporation†		289,091
10,162	Union Pacific Corporation†		558,910
			1,466,879
Rubber & Miscellaneous Plastics Products – 0.27%
2,944	Company Oper Tire & Rubber Company†		35,917
7,018	Goodyear Tire & Rubber Company†		36,282
10,588	Nike Incorporated – Cl B†		544,435
2,400	Reebok International Limited		78,840
3,360	Sealed Air Corporation		134,837
2,335	Tupperware Corporation†		32,270
			862,581
Security & Commodity Brokers, Dealers, Exchanges & Services – 1.86%
3,973	Bear Stearns Cos Incorporated†		260,629
53,796	Charles Schwab Corporation†		388,407
10,306	Franklin Resources Incorporated†		339,170
18,895	Goldman Sachs Group Incorporated†		1,286,371
8,907	Janus Capital Group Incorporated†		101,451
9,709	Lehman Brothers Holdings†		560,695
34,610	Merrill Lynch & Company Incorporated†		1,225,194
43,371	Morgan Stanley†		1,663,278
4,896	T. Rowe Price Group Incorporated†		132,775
			5,957,970
Stone, Clay, Glass, & Concrete Products – 0.09%
47,992	Corning Incorporated		280,273
Tobacco Products – 0.87%
82,822	Altria Group Incorporated†		2,481,347
3,397	RJ Reynolds Tobacco Hldgs†		109,588
6,717	UST Incorporated†		185,389
			2,776,324

55

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INDEX FUND

Shares	Security Name	Value
Transportation By Air – 0.36%
4,938	Delta Air Lines Incorporated†	$	43,948
11,949	Fedex Corporation†		658,031
31,014	Southwest Airlines Incorporated†		445,362
			1,147,341
Transportation Equipment – 1.75%
33,645	Boeing Co†		843,144
3,609	Brunswick Corporation†		68,571
5,949	Dana Corporation†		42,000
22,400	Delphi Corporation†		152,992
73,473	Ford Motor Company†		552,517
8,044	General Dynamics Corporation†		442,983
22,438	General Motors Corporation†		754,366
6,992	Genuine Parts Company†		213,326
4,703	Goodrich Corporation†		66,124
12,117	Harley-Davidson Incorporated†		481,165
34,255	Honeywell International Incorporated†		731,687
3,675	ITT Industries Incorporated†		196,282
2,731	Navistar International Corporation		67,210
7,308	Northrop Grumman Corporation†		627,026
4,639	Paccar Incorporated†		233,203
5,443	Textron Incorporated†		149,465
			5,622,061
Transportation Services – 0.03%
5,712	Sabre Holdings Corporation		90,878
Water Transportation – 0.18%
23,500	Carnival Corporation†		566,585
Wholesale Trade – Durable Goods – 2.20%
3,660	Grainger (W W) Incorporated†		157,014
118,934	Johnson & Johnson†		6,882,711
5,165	Visteon Corporation †		30,680
			7,070,405
Wholesale Trade – Non-Durable Goods – 0.83%
4,412	Amerisourcebergen Corporation†		231,630
2,416	Brown-Forman Corporation†		185,790
18,103	Cardinal Health Incorporated†		1,031,327
11,649	Mckesson Corporation†		290,410
17,660	Safeway Incorporated		334,304
5,352	Supervalu Incorporated†		82,956
26,172	Sysco Corporation†		665,810
			2,822,227
Total Common Stock (Cost $227,006,944)			313,038,086

56

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY INDEX FUND

Shares	Security Name	Value
Rights – 0.00%
12,100	Seagate Technology Tax Refund Rights	$	0

Principal					Interest Rate		Maturity Date
Short-Term Investments – 2.30%
Repurchase Agreements – 2.13%
$	6,837,435	Goldman Sachs Group – 102% Collateralized by US Government Securities†			1.42	%	04/01/2003		6,837,435
Government Sponsored Entity – 0.17%
	330,000	US T-Bill Mat 08/21/03†			1.16		08/21/2003		328,542
	165,000	US T-Bill 912795Nj6†			1.18		08/21/2003		164,252
	45,000	US T-Bill 912795Nj6†			1.18		08/21/2003		44,799
									537,593
Total Short-Term Investments (Cost $7,374,967)									7,375,028
Total Investments In Securities (Cost $234,381,911)			99.90	%				$	320,413,114
Other Assets and Liabilities, Net			0.10						318,951
Total Net Assets			100.00	%				$	320,731,586

† Non income producing securities.

The accompanying notes are an integral part of these financial statements.

57

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY VALUE FUND

Shares	Security Name	Value
Common Stock – 98.71%
Chemicals And Allied Products – 13.48%
3,220	Air Products & Chemicals†	$	133,405
38,700	Du Pont (E.I.) De Nemours†		1,503,881
29,000	Merck & Co Incorporated†		1,588,620
26,600	Pharmacia Corporation†		1,151,780
21,250	Procter & Gamble Company†		1,892,313
51,000	Rohm & Haas Company†		1,518,780
			7,788,779
Communications – 3.65%
10,600	AT&T Corporation†		171,720
11,850	SBC Communications Incorporated†		237,711
48,050	Verizon Communications†		1,698,568
			2,107,999
Depository Institutions – 10.12%
14,965	Bank Of America Corporation†		1,000,261
28,590	Citigroup Incorporated†		984,926
73,300	JP Morgan Chase & Company†		1,737,942
111,900	Us Bancorporation†		2,123,862
			5,846,991
Eating And Drinking Places – 2.35%
94,000	Mcdonald’s Corporation†		1,359,240
Electric, Gas, And Sanitary Services – 5.56%
6,800	Dominion Resources Incorporated†		376,516
16,350	Duke Energy Corporation†		237,729
11,000	Firstenergy Corporation†		346,500
53,000	Public Service Enterprise†		1,944,570
17,163	TXU Corporation†		306,360
			3,211,675
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 5.78%
35,000	Emerson Electric Company†		1,587,250
58,100	General Electric Company†		1,481,550
33,000	Motorola Incorporated†		272,580
			3,341,380
Food And Kindred Products – 6.26%
52,250	Pepsico Incorporated†		2,090,000
81,600	Sara Lee Corporation†		1,525,920
			3,615,920
Fabricated Metal Products, Except Machinery And Transportation Equipment – 3.75%
50,600	Fortune Brands Incorporated†		2,169,222

58

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

EQUITY VALUE FUND

Shares	Security Name	Value
General Merchandise Stores – 5.44%
50,325	May Department Stores Company†	$	1,000,964
30,000	Sears Roebuck & Company†		724,500
48,500	Target Corporation†		1,419,110
			3,144,574
Industrial & Commercial Machinery & Computer Equipment – 11.42%
15,900	3M Company†		2,067,477
126,300	Hewlett-Packard Company†		1,963,965
32,687	IBM Corporation†		2,563,641
			6,595,083
Insurance Carriers – 8.19%
140,696	Aegon Nv†		1,062,255
24,077	American Intl Group†		1,190,607
25,600	Metlife Incorporated†		675,328
56,700	St Paul Cos Incorporated†		1,803,060
			4,731,250
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 1.18%
19,727	Becton Dickinson & Company†		679,398
Motion Pictures – 1.65%
56,000	Walt Disney Company†		953,120
Non-Depository Credit Institutions – 1.96%
34,000	American Express Company†		1,129,820
Oil And Gas Extraction – 0.89%
13,500	Schlumberger Limited†		513,135
Pharmaceuticals – 0.55%
8,400	Abbott Laboratories†		315,924
Petroleum Refining And Related Industries – 9.56%
33,775	BP Plc†		1,303,377
18,175	Chevrontexaco Corporation†		1,175,014
63,751	Exxon Mobil Corporation†		2,228,097
20,000	Royal Dutch Petroleum Company†		815,000
			5,521,488
Tobacco Products – 2.74%
52,750	Altria Group Incorporated†		1,580,390
Transportation Equipment – 1.29%
35,000	Honeywell Intl Incorporated†		747,600
Wholesale Trade – Durable Goods – 2.8%
28,900	Johnson & Johnson†		1,672,444
Total Common Stock (Cost $70,533,900)			57,025,432

59

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY VALUE FUND

Principal		Security Name			Interest Rate		Maturity Date	Value
Short-Term Investments – 0.9%
Repurchase Agreements – 0.9%
$	521,000	Goldman Sachs – 102% Collateralized by US Government Securities†			1.3	%	04/01/2003	$	521,000
Total Short-Term Investments (Cost $521,000)									521,000
Total Investment In Securities (Cost $71,054,900)			99.61	%				$	57,546,432
Other Assets And Liabilities, Net			0.39	%					223,491
Total Net Assets			100.00	%				$	57,769,923

† Non income producing securities.

The accompanying notes are an integral part of these financial statements.

60

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

GROWTH FUND

Shares	Security Name	Value
Common Stock – 96.76%
Apparel And Accessory Stores – 2.14%
66,800	Kohls Corporation	$	3,779,544
Building Materials, Hardware, Garden Supply, & Mobile Home Dealers – 3.62%
156,540	Lowe’s Companies Incorporated†		6,389,963
Business Services – 14.22%
54,500	Affiliated Computer Svcs		2,412,170
42,660	Ebay Incorporated		3,638,471
39,710	Electronic Arts Incorporated		2,328,594
72,880	First Data Corporation†		2,697,289
88,990	Fiserv Incorporated		2,801,405
95,150	Intuit Incorporated		3,539,580
257,098	Microsoft Corporation†		6,224,343
137,410	Oracle Systems Corporation		1,490,761
			25,132,613
Chemicals And Allied Products – 12.36%
91,320	Amgen Incorporated		5,255,466
91,520	Ecolab Incorporated†		4,514,682
112,470	Forest Laboratories Incorporated		6,070,006
40,300	Gilead Sciences Incorporated		1,692,197
138,471	Pfizer Incorporated†		4,314,756
			21,847,107
Depository Institutions – 7.77%
152,621	Citigroup Incorporated†		5,257,793
94,200	Commerce Bancorporation Incorporated†		3,743,508
38,070	Fifth Third Bancorporation†		1,908,830
95,670	North Fork Bancorporation†		2,817,482
			13,727,613
Educational Services – 2.23%
78,920	Apollo Group Incorporated		3,938,108
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 7.40%
108,400	Intel Corporation†		1,764,752
91,270	L-3 Communications Hldgs		3,666,316
125,570	Linear Technology Corporation†		3,876,346
104,530	Maxim Integrated Products†		3,775,623
			13,083,037
Food Stores – 5.33%
220,920	Starbucks Corporation		5,690,898
66,910	Whole Foods Market Incorporated		3,722,872
			9,413,772

61

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

GROWTH FUND

Shares	Security Name	Value
Food And Kindred Products – 1.23%
54,400	Pepsico Incorporated†	$	2,176,000
General Merchandise Stores – 3.13%
106,150	Wal-Mart Stores Incorporated†		5,522,985
Health Services – 0.87%
37,220	HCA Incorporated†		1,539,419
Home Furniture, Furnishings, And Equipment Stores – 2.88%
147,360	Bed Bath & Beyond Incorporated		5,089,814
Industrial & Commercial Machinery & Computer Equipment – 6.66%
443,323	Cisco Systems Incorporated		5,718,867
163,784	Dell Computer Corporation		4,472,941
218,830	EMC Corporation		1,582,141
			11,773,949
Insurance Carriers – 7.81%
141,210	Aflac Incorporated†		4,525,781
58,670	Ambac Financial Group Incorporated†		2,964,008
77,431	American Intl Group†		3,828,963
32,260	Wellpoint Health Networks		2,475,955
			13,794,707
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 4.90%
151,130	Medtronic Incorporated†		6,818,986
37,820	Zimmer Holdings, Incorporated		1,839,187
			8,658,173
Miscellaneous Retail – 2.40%
143,590	Walgreen Company†		4,233,033
Oil And Gas Extraction – 1.61%
46,149	Apache Corporation†		2,849,208
Printing, Publishing, And Allied Industries – 1.70%
82,486	Viacom Incorporated		3,012,389
Petroleum Refining And Related Industries – 2.12%
214,410	Suncor Energy Incorporated†		3,745,743
Wholesale Trade-Durable Goods – 2.38%
72,730	Johnson & Johnson†		4,208,884
Wholesale Trade Non-Durable Goods – 4.00%
79,910	Cardinal Health Incorporated†		4,552,472
98,990	Sysco Corporation†		2,518,306
			7,070,778
Total Common Stock (Cost $162,733,898)			170,986,839

62

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

GROWTH FUND

Principal					Interest Rate		Maturity Date	Value
Short-Term Investments – 2.64%
Repurchase Agreements – 2.64%
$	4,663,872	Credit Suisse First Boston – 102% Collateralized by US Government Securities†			1.37	%	04/01/2003	$	4,663,872
Total Short-Term Investment (Cost $4,663,872)									4,663,872
Total Investment In Securities (Cost $167,397,770)			99.40	%				$	175,650,711
Other Assets And Liabilities, Net			0.60	%					1,064,732
Total Net Assets			100.00	%				$	176,715,443

† Non income producing securities.

The accompanying notes are an integral part of these financial statements.

63

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

GROWTH EQUITY FUND

Face/Share Amount	Security Description	Value
N/A	International Equity Portfolio	$	111,693,404
N/A	Large Company Growth Portfolio		134,556,244
N/A	Small Cap Basic Value Portfolio		7,656,765
N/A	Small Cap Index Portfolio		41,947,202
N/A	Small Company Growth Portfolio		42,295,287
N/A	Small Company Value Portfolio		42,004,651

Total Investment In Master Portfolio ($282,435,365)				380,153,554
Total Investment In Master Portfolio (Cost $282,435,365)	99.94	%	$	380,153,554
Other Assets And Liabilities, Net	0.06			245,908
Total Net Assets	100.00	%	$	380,399,462

The accompanying notes are an integral part of these financial statements.

64

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

INDEX FUND

Face/Share Amount	Security Description	Value
N/A	Index Portfolio	$	651,398,522
Total Investment In Master Portfolio (Cost $544,625,904)			651,398,522

Total Investment In Master Portfolio (Cost $544,625,904)	99.91	%	$	651,398,522
Other Assets And Liabilities, Net	0.09			575,910
Total Net Assets	100.00	%	$	651,974,432

The accompanying notes are an integral part of these financial statements.

65

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INTERNATIONAL EQUITY FUND

Shares	Security Name	Value
Common Stock – 90.39%
Australia – 2.99%
209,700	Aust and Nz Banking Group (Banking)†	$	2,272,101
1,238,800	BHP Billiton Limited (Oil And Gas Extraction)†		6,947,014
469,364	News Corporation (Printing, Publishing, And Allied Industries)†		3,054,742
			12,273,857
Brazil – 0.75%
154,470	Aracruz Celulose (Paper And Allied Products)†		3,090,945
Canada – 3.57%
78,897	Canadian National Railway (Railroad Transportation)†		3,365,730
313,697	Loblaw Companies Limited (Food Stores)†		11,313,599
			14,679,329
European Currency Unit – 0.82%
314,900	Bank of Ireland (Banking)†		3,364,037
Finland – 0.66%
195,885	Nokia (Coal Mining)†		2,706,078
France – 7.87%
49,517	Lafarge SA (Coal Mining)†		2,771,897
143,979	Aventis SA (Chemicals And Allied Products)†		6,320,546
106,685	Total Fina Elf (Oil And Gas Extraction)†		13,504,136
48,946	Sanofi-Synthelabo SA (Chemicals And Allied Products)†		2,462,735
98,771	Television Francaise (Communications)†		2,250,429
204,028	Arcelor (Primary Metal Industries)†		1,794,445
80,200	BNP Paribas SA (Depository Institutions)†		3,211,781
			32,315,969
Germany – 2.81%
65,686	SAP AG (Coal Mining)†		4,977,950
127,306	EON AG (Electric, Gas, And Sanitary Services)†		5,248,271
22,878	Muenchener Rueckversicher (Business Services)†		1,310,638
			11,536,859
Greece – 0.20%
88,900	Hellenic Telecom (Communications)†		814,867
Ireland – 1.54%
149,700	Anglo Irish Bank Corporation (US Government)†		1,068,329
127,005	Ryanair Holdings PLC (Transportation By Air)		5,266,897
			6,335,226
Italy – 3.26%
973,800	Unicredito Italiano SPA (Depository Institutions)†		3,708,520
638,528	ENI SPA (Oil And Gas Extraction)†		8,528,385

66

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

INTERNATIONAL EQUITY FUND

Shares	Security Name	Value
Italy (continued)
101,100	Banco Popolare Di Verona E Novara Scrl (Depository Institutions)†	$	1,147,334
			13,384,239
Japan – 14.00%
1,518	NTT Docomo Incorporated (Packaged Foods)†		2,829,128
227,364	Canon Incorporated (Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods)†		7,937,992
181,135	Fuji Photo Film Company Ord (Packaged Foods)†		5,560,225
134,685	Fujisawa Pharmaceuticals (Chemicals And Allied Products)†		2,708,920
47,100	Fanuc Limited (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		2,041,609
521,386	Nomura Holdings Incorporated (Security And Commodity Brokers, Dealers, Exchanges & Services)†		5,430,189
146,705	Ricoh Company Limited (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		2,292,498
71,170	Rinnai Corporation (Building Materials, Hardware, Garden Suppy, & Mobile Home Dealers)†		1,440,446
66,031	Secom Company Limited (Diversified Electronic Products)†		1,692,817
155,741	Seven Eleven Japan (Miscellaneous Retail)†		4,110,891
251,654	Sharp Corporation (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		2,483,009
131,345	Sony Corporation (Miscellaneous Retail)†		4,652,126
72,080	Takeda Chemical Industries (Chemicals And Allied Products)†		2,692,819
96,280	Tostem Inax Holding Corporation (Building Materials, Hardware, Garden Suppy, & Mobile Home Dealers)†		1,022,234
477,100	Toyota Motor Corporation (Transportation Equipment)†		10,601,777
			57,496,680
Korea (South) – 0.59%
2,553	Samsung Electronics (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		148,968
41,237	Samsung Electronics (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		2,268,208
			2,417,176
Mexico – 0.71%
1,206,908	Walmart De Mexico (General Merchandise Stores)†		2,934,364
Netherlands – 6.27%
459,369	Philips Electronics NV (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		7,161,563
245,161	Royal Dutch Petroleum Company (Petroleum Refining And Related Industries)†		9,981,184
327,648	TPG NV (Transportation Services)†		4,991,124
97,078	Heineken NV (Food And Kindred Products)†		3,600,621
			25,734,492
Singapore – 1.13%
890,765	DBS Group Holdings Limited (Non-Depository Credit Institutions)†		4,642,686
Spain – 1.65%
380,317	Telefonica SA (Communications)†		3,556,575
74,900	Banco Popular Espanol SA (Depository Institutions)†		3,236,551
			6,793,126
Sweden – 0.40%
579,000	Teliasonera Ab (Miscellaneous Services)†		1,659,370

67

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INTERNATIONAL EQUITY FUND

Shares	Security Name	Value
Switzerland – 10.73%
342,558	Stora Enso Oyj (Paper And Allied Products)†	$	3,158,612
279,230	Stmicroelectronics NV (Electronic And Other Electrical Equipment & Components, Except Computer Equipment)†		5,286,485
253,655	Novartis AG (Chemicals And Allied Products)†		9,393,865
106,816	Adecco SA (Business Services)†		2,967,858
61,929	Nestle SA (Food And Kindred Products)†		12,257,860
138,935	UBS AG (Packaged Foods)†		5,911,209
131,164	Credit Suisse Group (Packaged Foods)†		2,280,759
57,466	Swiss Re (Currency Of Hungary)†		2,819,170
			44,075,818
United Kingdom – 21.36%
260,485	British Sky Broadcasting (Communications)		2,579,527
1,023,253	Capita Group PLC (Health Services)†		3,825,167
763,416	Diageo PLC (Eating And Drinking Places)†		7,831,451
1,074,406	Compass Group PLC (Eating And Drinking Places)†		4,589,553
330,800	Hsbc Holdings PLC (Packaged Foods)†		3,393,489
884,427	Centrica PLC (Electric, Gas, And Sanitary Services)†		2,016,574
479,111	Pearson PLC (Printing, Publishing, And Allied Industries)†		3,638,864
208,000	Rio Tinto PLC (Rubber And Miscellaneous Plastics Products)†		3,876,265
5,946,422	Vodafone Group PLC (Communications)†		10,621,123
237,307	Reckitt Benckiser PLC (Chemicals And Allied Products)†		3,889,785
481,878	Royal Bank Of Scotland (Depository Institutions)†		10,853,960
1,151,375	BP Amoco PLC (Oil And Gas Extraction)†		7,302,442
370,500	Smith & Nephew PLC (Chemicals And Allied Products)†		2,266,394
422,458	Glaxosmithkline PLC (Packaged Foods)†		7,432,159
543,439	WPP Group PLC (Communications)†		2,929,149
960,079	Barclays PLC (Packaged Foods)†		5,539,060
5,619	Glaxosmithkline PLC-ADR (Chemicals And Allied Products)†		197,733
477,748	Hsbc Holdings PLC (Non-Depository Credit Institutions)†		4,915,645
			87,698,340
United States – 9.08%
136,600	Amersham PLC (Health Services)†		887,419
706,000	I Shares MSCI Belgium Index Fund (Mutual Fund)†		6,022,180
285,400	I Shares MSCI United Kingdom (Mutual Fund)†		3,213,604
528,600	I Shares MSCI Sweden Index Fund (Mutual Fund)†		4,873,692
417,500	I Shares MSCI Spain Index Fund (Mutual Fund)†		7,565,100
459,800	I Shares MSCI Germany Index (Mutual Fund)†		3,995,662
382,600	I Shares MSCI Netherlands Index (Mutual Fund)†		4,139,732
458,600	I Shares MSCI Japan (Miscellaneous Services)†		2,962,556
256,800	I Shares MSCI Italy Index Fund (Mutual Fund)†		3,577,226
			37,237,171
Total Common Stock (Cost $449,828,771)			371,190,628

68

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

INTERNATIONAL EQUITY FUND

Principal					Interest Rate		Maturity Date	Value
Short-Term Investments – 8.28%
Repurchase Agreements – 8.28%
$	34,009,805	Credit Suisse First Boston – 102% Collateralized by US Government Securities†			1.37	%	04/01/2003	$	34,009,805
Total Short-Term Investments (Cost $34,009,805)									34,009,805
Total Investment In Securities (Cost $483,838,576)			98.67	%				$	405,200,433
Other Assets And Liabilities, Net			1.33						5,468,390
Total Net Assets			100.00	%				$	410,668,823

† Non income producing securities.

The accompanying notes are an integral part of these financial statements.

69

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

LARGE CAP APPRECIATION FUND

Face/Share Amount	Security Name	Value
N/A	Wells Fargo Large Cap Appreciation Portfolio	$	13,959,978

Total Investment In Master Portfolio – (Cost $13,861,632)				13,959,978
Total Investment In Master Portfolio (Cost $13,861,632)	100.70	%	$	13,959,978
Other Assets and Liabilities, Net	(0.70	)		(97,353	)
Total Net Assets	100.00	%	$	13,862,625

The accompanying notes are an integral part of these financial statements.

70

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

LARGE COMPANY GROWTH FUND

Face/Share Amount	Security Name	Value
N/A	Large Company Growth Portfolio	$	1,664,591,149

Total Investment In Master Portfolio – (Cost $2,070,342,656)				1,664,591,149
Total Investment in Master Portfolio (Cost $2,070,342,656)	99.93	%	$	1,664,591,149
Other Assets and Liabilities, Net	0.07			1,111,453
Total Net Assets	100.00	%	$	1,665,702,602

The accompanying notes are an integral part of these financial statements.

71

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

MID CAP GROWTH FUND

Share	Security Name	Value
Common Stock – 91.43%
Apparel And Accessory Stores – 1.00%
2,650	Abercrombie & Fitch Company†	$	79,580
Business Services – 14.91%
1,650	Adobe Systems Incorporated		50,870
1,900	Affiliated Computer Services†		84,094
2,300	Agile Software Corporation†		14,766
4,075	BEA Systems Incorporated†		41,524
7,500	Business Objects SA†		122,625
2,500	Checkfree Corporation†		56,200
3,000	Citrix Systems Incorporated†		39,480
1,130	DST Systems Incorporated†		30,736
1,100	F5 Networks Incorporated†		13,893
1,417	Fiserv Incorporated†		44,607
3,125	Informatica Corporation†		20,156
5,750	Interpublic Group Companies Incorporated		53,475
1,850	Intuit Incorporated†		68,820
5,700	JD Edwards & Company†		62,814
2,900	JDA Software Group Incorporated†		29,319
2,400	Lamar Advertising Company†		70,440
3,450	Lawson Software†		16,008
1,125	Manpower Incorporated		33,615
4,510	Microstrategy Incorporated†		108,736
3,350	NetIQ Corporation†		37,386
8,550	Quest Software Incorporated†		76,950
2,900	Retek Incorporated†		16,733
9	Sungard Data Systems Incorporated†		192
6,350	Verisign Incorporated†		55,499
4,050	Webmethods Incorporated†		36,975
			1,185,913
Chemicals And Allied Products – 8.10%
6,811	Andrx Group†		80,438
850	Biogen Incorporated†		25,466
3,626	Gilead Sciences Incorporated†		152,256
1,539	IDEC Pharmaceuticals Corporation†		52,971
2,473	Medicis Pharmaceutical-Class A‡		137,474
3,596	Medimmune Incorporated†		118,055
1,375	Praxair Incorporated		77,481
			644,141
Communications – 2.28%
2,575	Entercom Communications†		113,068
2,900	Extreme Networks Incorporated†		12,557
2,260	Univision Communications†		55,393
			181,018

72

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

MID CAP GROWTH FUND

Share	Security Name	Value
Depository Institutions – 2.39%
1,148	Charter One Financial Incorporated	$	31,754
1,400	City National Corporation		61,516
2,875	National Commerce Financial		68,138
2,075	Sovereign Bancorp Incorporated		28,739
			190,147
Eating And Drinking Places – 0.58%
1,430	Cheesecake Factory†		46,146
Educational Services – 2.45%
2,000	Career Education Corporation†		97,840
2,450	Corinthian Colleges Incorporated†		96,775
			194,615
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 11.47%
4,050	Adaptec Incorporated†		24,422
1,766	American Power Conversion†		25,148
4,550	Flextronics International Limited†		39,676
1,225	Harris Corporation		34,018
4,650	Integrated Circuit Systems†		100,905
2,975	L-3 Communications Holdings†		119,506
2,360	Maxim Integrated Products Incorporated		85,243
12,875	Micrel Incorporated†		118,708
1,950	Molex Incorporated		41,886
4,275	National Semiconductor†		72,846
3,475	Novellus Systems Incorporated†		94,763
14,025	Skyworks Solutions Incorporated†		87,376
1,600	Utstarcom Incorporated†		31,982
1,750	Varian Semiconductor Equipment†		35,595
			912,074
Engineering, Accounting, Research Management & Related Services – 1.19%
2,625	Icon PLC†		62,475
1,203	Pharmaceutical Product Development†		32,302
			94,777
General Merchandise Stores – 2.84%
5,575	Family Dollar Stores Incorporated		172,156
3,075	TJX Companies Incorporated		54,120
			226,276
Health Services – 8.22%
7,650	Caremark Rx Incorporated†		138,848
7,074	Enzon Pharmaceuticals Incorporated†		80,290
2,300	Express Scripts Incorporated†		128,064
4,175	Health Management Association		79,325
4,650	Laboratory Corporation of America†		137,873

73

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

MID CAP GROWTH FUND

Share	Security Name	Value
Health Services (continued)
2,200	Universal Health Services†	$	89,694
			654,094
Home Furniture, Furnishings, And Equipment Stores – 2.47%
4,285	Bed Bath & Beyond Incorporated†		148,004
3,050	Pier 1 Imports Incorporated		48,373
			196,377
Industrial & Commercial Machinery & Computer Equipment – 4.28%
2,200	CDW Computer Centers Incorporated†		89,760
2,225	Entegris Incorporated†		22,161
575	International Game Technology†		47,093
225	Lexmark International Incorporated†		15,064
2,200	Smith International Incorporated†		77,506
1,650	Varian Medical Systems†		88,985
			340,569
Insurance Agents, Brokers And Service – 0.97%
3,150	Gallagher Arthur J & Company		77,333
Insurance Carriers – 1.62%
2,100	Ace Limited		60,795
2,500	Principal Financial Group		67,850
			128,645
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 5.74%
2,625	Allergan Incorporated		179,051
2,675	Biomet Incorporated		81,989
1,600	Danaher Corporation		105,216
1,000	Kla-Tencor Corporation†		35,942
1,900	Raytheon Company		53,903
5	St Jude Medical Incorporated†		244
			456,345
Miscellaneous Manufacturing Industries – 0.57%
1,800	Tiffany & Company		45,000
Miscellaneous Retail – 1.17%
4,675	Dollar Tree Stores Incorporated†		93,033
Oil & Gas Extraction – 6.60%
945	Apache Corporation		58,344
2,365	BJ Services Company†		81,332
3,850	Globalsantafe Corporation		79,503
2,675	Nabors Industries Ltd†		106,652
2,625	Ocean Energy Incorporated		52,500
2,400	Tidewater Incorporated		68,928

74

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

MID CAP GROWTH FUND

Share	Security Name	Value
Oil & Gas Extraction (continued)
4,250	Varco International Incorporated†	$	77,816
			525,075
Printing, Publishing, And Allied Industries – 1.37%
2,525	New York Times Company		108,954
Rubber And Miscellaneous Plastics Products – 1.55%
2,398	Nike Incorporated – Class B		123,305
Security And Commodity Brokers, Dealers, Exchanges & Services – 2.93%
1,475	Lehman Brothers Holdings		85,181
3,141	Neuberger Berman Incorporated		88,670
3,384	Waddell & Reed Financial		59,457
			233,308
Transportation By Air – 1.42%
1,600	Skywest Incorporated		16,496
6,700	Southwest Airlines Incorporated		96,212
			112,708
Water Transportation – 1.26%
6,650	Royal Caribbean Cruises		99,950
Wholesale Trade – Durable Goods – 1.05%
3,025	Martin Marietta Materials		83,520
Wholesale Trade – Non-Durable Goods – 3.01%
2,050	Mckesson Corporation		51,107
7,074	Priority Healthcare Corporation†		188,523
			239,630
Total Common Stock (Cost $7,430,867)			7,272,533

Principal					Interest Rate		Maturity Date
Short-Term Investments – 9.37%
Repurchase Agreements – 9.37%
$	382,000	Goldman Sachs – 102% Collateralized by US Government Securities			1.30	%	04/01/2003		382,000
	363,000	Morgan Stanley – 102% Collateralized by US Government Securities			1.27		04/01/2003		363,000
Total Short-Term Investments (Cost $745,000)									745,000
Total Investments In Securities (Cost $8,175,867)			100.80	%					8,017,533
Other Assets and Liabilities, Net			(0.80	)					(63,815	)
Total Net Assets			100.00	%				$	7,953,718

† Non-Income Earning Securities.

The accompanying notes are an integral part of these financial statements.

75

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SIFE SPECIALIZED FINANCIAL SERVICES FUND

Shares	Security Name	Value
Common Stock – 87.35%
Commerce – 0.51%
100,000	National Commerce Financial Corporation	$	2,370,000
Depository Institutions – 2.39%
250,000	Greenpoint Financial Corporation		11,202,500
Financial Services – 72.83%
300,000	American International Group Incorporated		14,835,000
241,498	BB&T Corporation		7,590,282
401,400	Bank Of America Corporation		26,829,576
332,000	Bank Of The Ozarks Incorporated		9,249,520
286,000	Bankatlantic Bancorp Incorporated		2,799,940
436,081	Banknorth Group Incorporated		9,510,927
211,000	Bear Stearns Companies Incorporated		13,841,600
175,000	Capital One Financial Corporation		5,251,750
352,969	Charter One Financial Incorporated		9,763,123
1,702,877	Citigroup Incorporated		58,664,113
250,080	Compass Bancshares Incorporated		7,820,002
236,142	Cullen/Frost Bankers Incorporated		7,173,994
200,000	Fifth Third Bancorp		10,028,000
348,000	Fleetboston Financial Corporation		8,310,240
810,700	Greater Bay Bancorp		11,593,010
212,300	Independent Bank Corporation		4,248,123
271,200	Lehman Brothers Holdings Incorporated		15,661,800
328,250	MBNA Corporation		4,940,163
150,000	Merrill Lynch & Company Incorporated		5,310,000
210,000	Metlife Incorporated		5,539,800
260,700	Morgan Stanley		9,997,845
182,812	New York Community Bancorp Incorporated		5,447,798
100,000	PNC Financial Services Group		4,238,000
324,025	Sky Financial Group Incorporated		6,373,572
259,000	Summit Bancshares Incorporated		4,952,080
87,800	Suntrust Banks Incorporated		4,622,670
171,612	TCF Financial Corporation		6,871,344
158,913	Texas Regional Bancshares Incorporated		4,797,571
573,213	US Bancorp		10,879,583
214,050	Umpqua Holdings Corporation		3,872,165
122,400	Unionbancal Corporation		4,825,008
391,300	Wachovia Corporation		13,331,591
350,644	Washington Mutual Incorporated		12,367,214
224,785	Zions Bancorporation		9,616,301
			341,153,705
Insurance Carriers – 2.53%
490,645	Endurance Specialty Holdings†		11,868,702

76

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SIFE SPECIALIZED FINANCIAL SERVICES FUND

Shares	Security Name	Value
Non-Depository Credit Institutions – 5.64%
325,000	Doral Financial Corporation	$	11,488,750
228,300	Fannie Mae		14,919,404
			26,408,154

Packaged Foods – 1.09%
200,000	Southtrust Corporation	5,106,000
Transportation Services – 2.36%
193,000	Prudential Reinsurance Holdings Incorporated	11,041,530
Total Common Stock (Cost $405,178,186)		409,150,591

Principal					Coupon Rate		Maturity Date
Short-Term Investments – 19.70%
Treasury Bill – 2.96%
	9,000,000	US Treasury Bill			1.16	%	04/24/2003		8,993,416
	4,875,000	US Treasury Bill			1.13		04/24/2003		4,871,480
Total Treasury Bills (Cost $13,864,896)									13,864,896
Repurchase Agreement – 16.74%
$	35,415,000	Goldman Sachs & Company – 102% Collateralized by US Government Securities			1.30		04/01/2003		35,415,000
	43,000,000	Morgan Stanley & Company Incorporated – 102% Collateralized by US Government Securities			1.27		04/01/2003		43,000,000
Total Repurchase Agreements (Cost $78,415,000)									78,415,000
Total Short-Term Investments (Cost $92,258,921)									92,279,896
Total Investments In Securities (Cost $497,458,082)			107.05	%				$	501,430,487
Other Assets And Liabilities, Net			(7.05	)					(33,007,507	)
Total Net Assets			100.00	%				$	468,422,980

† Non income producing securities.

The accompanying notes are an integral part of these financial statements.

77

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP GROWTH FUND

Shares	Security Name	Value
Common Stock – 91.40%
Amusement & Recreation Services – 1.37%
54,075	Alliance Gaming Corporation†	$	811,125
60,906	Multimedia Games Incorporated†		1,171,222
			1,982,347
Apparel & Accessory Stores – 2.37%
114,200	Aeropostale Incorporated†		1,513,150
48,625	Christopher & Banks Corporation†		860,663
44,575	Claire’s Stores Incorporated		1,052,416
			3,426,228
Business Services – 9.30%
185,709	Agile Software Corporation†		1,192,252
123,575	Bea Systems Incorporated†		1,259,229
121,850	Business Objects Sa†		1,992,248
142,850	JD Edwards & Company†		1,574,207
67,300	F5 Networks Incorporated†		849,999
93,450	Informatica Corporation†		602,753
74,950	Matrixone Incorporated†		253,331
5,500	Microstrategy Incorporated†		132,605
82,394	Netiq Corporation†		919,517
197,193	Quest Software Incorporated†		1,774,737
31,871	Rent-A-Center Incorporated†		1,743,662
80,125	Retek Incorporated†		462,321
67,132	Webex Communications, Incorporated.†		694,145
			13,451,006
Chemicals & Allied Products – 10.49%
27,169	Taro Pharmaceuticals Industries Limited ADR†		1,040,029
124,050	Andrx Group†		1,465,031
84,080	Cell Therapeutics Incorporated†		697,023
47,038	Connetics Corporation†		787,887
31,031	Medicis Pharmaceutical – Class A†		1,725,013
93,162	NPS Pharmaceuticals Incorporated†		1,440,285
60,625	Neurocrine Biosciences†		2,532,913
69,600	Pharmaceutical Resources†		2,956,608
113,975	Serologicals Corporation†		968,788
90,092	United Therapeutics Corporation†		1,553,186
			15,166,761
Communications – 2.37%
75,775	Cumulus Media Incorporated†		1,103,284
157,849	Entravision Comm Corporation†		852,385
250,100	Extreme Networks Incorporated†		1,082,933
64,175	Spanish Broadcasting Systems†		394,035
			3,432,636

78

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SMALL CAP GROWTH FUND

Shares	Security Name	Value
Depository Institutions – 10.62%
268,475	Bankatlantic Bancorp Incorporated	$	2,628,370
57,135	Bankunited Financial Corporation†		1,008,433
58,448	Commerce Bancshares Incorporated		2,136,274
63,775	Cullen/Frost Bankers Incorporated		1,937,485
54,781	Greater Bay Bancorp		783,368
56,950	Southwest Bancorp Of Texas†		1,710,209
123,900	Sterling Bancshares Texas		1,473,171
60,418	Texas Regional Bancshares		1,824,004
38,400	Umpqua Holdings Corporation		694,656
41,850	United Bankshares Incorporated		1,159,245
			15,355,215
Educational Services – 3.21%
35,820	Career Education Corporation†		1,752,314
44,077	Corinthian Colleges Incorporated†		1,741,042
28,725	Education Management Corporation†		1,142,393
			4,635,749
Electronic & Other Electrical Equipment & Components, Except Computer Equipment – 12.29%
43,882	Mervell Technology Group Limited†		929,860
39,700	ASM International NV†		396,206
73,550	Flextronics International Limited†		641,356
44,773	American Power Conversion†		637,568
19,075	Harman International Industries Incorporated		1,117,223
120,100	Integrated Circuit Systems†		2,606,170
43,091	Intersil Corporation†		670,496
22,685	L-3 Communications Holdings†		911,256
266,725	Micrel Incorporated†		2,459,205
76,800	National Semiconductor†		1,308,672
49,625	Novellus Systems Incorporated†		1,353,274
60,625	OSI Systems Incorporated†		958,481
161,195	Polycom Incorporated†		1,302,456
47,340	Silicon Image Incorporated†		188,413
294,935	Skyworks Solutions Incorporated†		1,837,445
22,275	Varian Semiconductor Equipment†		453,074
			17,771,153
Engineering, Accounting, Research Management & Related Services – 7.92%
78,750	The Advisory Board Company†		2,752,313
43,566	Corporate Exec Board Company†		1,551,821
62,025	Icos Corporation†		1,160,488
73,836	Icon Plc†		1,757,297
164,615	Kroll Incorporated†		3,524,407
97,950	Prg-Schultz International Incorporated†		706,220
			11,452,545

79

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP GROWTH FUND

Shares	Security Name	Value
Health Services – 2.72%
51,467	Conventry Health Care Incorporated†	$	1,693,264
107,425	Enzon Pharmaceuticals Incorporated†		1,219,274
120,645	Option Care Incorporated†		1,023,070
13	United Surgical Partners†		240
			3,935,848
Home Furniture, Furnishings, & Equipment Stores – 1.24%
67,425	Electronics Boutique Holdings†		1,132,066
82,550	Ultimate Electronics Incorporated†		656,273
			1,788,338
Industrial & Commercial Machinery & Computer Equipment – 1.22%
73,150	Entegris Incorporated†		728,574
90,709	Lam Research Corporation†		1,033,085
			1,761,659
Insurance Carriers – 2.70%
118,975	Odyssey Re Holdings Corporation		2,147,499
50,963	Triad Guaranty Incorporated†		1,751,089
			3,898,587
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 4.98%
38,450	Bio-Rad Laboratories Incorporated†		1,374,588
48,423	Cooper Companies Incorporated		1,447,848
43,250	Flir Systems Incorporated†		2,050,483
194,698	Therasense Incorporated†		1,300,583
35,425	Varian Incorporated†		1,015,281
3,101	Vivus Incorporated†		10,760
			7,199,541
Miscellaneous Manufacturing Industries – 1.36%
82,227	Leapfrog Enterprises Incorporated†		1,960,292
Miscellaneous Retail – 1.50%
66,225	G Tech Holdings Corporation†		2,162,909
2	Party City Corporation†		16
			2,162,925
Motion Pictures – 2.09%
188,213	Hollywood Entertainment Corporation†		3,018,937
Motor Freight Transportation & Warehousing – 0.81%
45,900	Arkansas Best Corporation		1,166,778

80

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SMALL CAP GROWTH FUND

Shares	Security Name	Value
Non-Depository Credit Institutions – 0.84%
55,950	Federal Agricultural Mtg†	$	1,219,151
Oil & Gas Extraction – 6.23%
230,843	Key Energy Services Incorporated†		2,326,897
30,629	Newfield Exploration Company†		1,038,017
27,450	Patterson-Uti Energy Incorporated†		888,282
81,399	Pride International Incorporated†		1,098,073
31,275	Stone Energy Corporation†		1,050,215
84,131	Tetra Tech Incorporated†		1,935,013
36,950	Varco International Incorporated†		676,555
			9,013,051
Petroleum Refining & Related Industries – 0.83%
70,250	Frontier Oil Corporation		1,201,275
Security & Commodity Brokers, Dealers, Exchanges & Services – 1.51%
28,950	Jefferies Group Incorporated		1,040,753
44,075	Raymond James Financial		1,140,220
			2,180,973
Water Transportation – 0.45%
48,150	Gulfmark Offshore Incorporated†		647,618
Wholesale Trade Non-Durable Goods – 2.98%
81,675	Men’s Wearhouse Incorporated†		1,221,858
115,804	Priority Healthcare Corporation†		3,086,177
			4,308,035
Total Common Stock (Cost $137,848,524)			132,136,646
Warrants – 0.00%
108	Imperial Credit Warrants	$	0
15	U.S. Surgical Corporation		0
Total Warrants (Cost $0)			0

Principal					Coupon Rate		Maturity Date
Short-Term Investments – 7.88%
Repurchase Agreements – 7.88%
$	7,257,000	Goldman Sachs & Company – 102% Collateralized by US Government Securities			1.30	%	04/01/2003		7,257,000
	4,130,000	Morgan Stanley & Company Incorporated – 102% Collateralized by US Government Securities			1.27		04/01/2003		4,130,000
Total Short-Term Investments (Cost $11,387,000)									11,387,000
Total Investments in Securities (Cost $149,235,524)			99.28	%					143,523,646
Other Assets and Liabilities, Net			0.72						1,034,112
Total Net Assets			100.00	%				$	144,557,758

† Non-income earning securities.

The accompanying notes are an integral part of these financial statements.

81

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP OPPORTUNITIES FUND

Shares	Security Names	Value
Common Stock – 87.63%
Apparel & Accessory Stores – 1.08%
59,500	Claire’s Stores Incorporated	$	1,404,795
99,800	Too Incorporated†		1,657,678
			3,062,473
Automotive Dealers & Gasoline Service Stations – 1.30%
79,300	Advance Auto Parts†		3,667,625
Business Services – 9.79%
45,300	Alliance Data Systems†		770,100
99,800	Arbitron Incorporated†		3,163,660
52,700	Avocent Corporation†		1,230,018
220,600	Doubleclick Incorporated†		1,714,062
516,000	MPS Group Incorporated†		2,693,520
325,000	MSC Software Corporation†		2,518,750
188,500	NDChealth Corporation		3,161,145
74,600	PEC Solutions Incorporated†		878,788
230,600	Progress Software Corporation†		4,139,270
116,000	SyBase Incorporated†		1,502,200
264,900	Unisys Corporation†		2,452,974
199,600	Universal Compression Holdings†		3,483,020
			27,707,507
Chemicals & Allied Products – 3.43%
228,800	Biomarin Pharmaceutical Incorporated†		2,596,880
105,000	Lyondell Chemical Company		1,464,750
49,173	Medicis Pharmaceutical†		2,733,527
77,700	NBTY Incorporated†		1,473,192
78,600	Olin Corporation		1,428,162
			9,696,511
Communications – 2.18%
139,400	Certegy Incorporated†		3,512,880
388,500	Crown Castle Intl Corporation†		2,136,750
30,200	Emmis Communications Corporation†		509,776
			6,159,406
Depository Institutions – 3.74%
137,300	Commerce Bancshares Incorporated		5,018,315
257,300	First Niagara Fin Gr Mhc		3,023,532
130,900	Indymac Bancorp Incorporated		2,546,005
			10,587,852
Eating & Drinking Places – 2.15%
56,400	CEC Entertainment Incorporated†		1,534,644
223,105	Ruby Tuesday Incorporated		4,551,342
			6,085,986

82

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SMALL CAP OPPORTUNITIES FUND

Shares	Security Names	Value
Electric, Gas, & Sanitary Services – 3.20%
36,700	Atlanta Gas & Light Company	$	867,221
197,000	Pnm Resources Incorporated		4,430,530
108,900	Waste Connections Incorporated†		3,757,050
			9,054,801
Electronic & Other Electrical Equipment & Components, Except Computer Equipment – 8.94%
484,300	Aeroflex Incorporated†		2,741,138
109,900	American Power Conversion Corporation†		1,564,976
127,500	Amphenol Corporation†		5,195,625
37,200	Cymer Incorporated†		879,780
209,900	Exar Corporation†		2,667,829
145,300	Harris Corporation		4,034,981
436,100	Lattice Semiconductor†		3,288,194
96,600	Smith (AO) Corporation		2,588,880
115,900	Varian Semiconductor Equipment†		2,357,406
			25,318,809
Engineering, Accounting, Research Management & Related Services – 2.48%
193,000	Bearingpoint Incorporated†		1,229,410
4,100	Core Laboratories N.V.†		42,640
23,800	Diversa Corporation†		222,768
81,700	Maximus Incorporated†		1,733,674
141,400	Pharmaceutical Product Devel†		3,796,731
			7,025,223
Food & Kindred Products – 1.98%
68,000	Bunge Limited		1,710,880
171,411	Constellation Brands Incorporated†		3,891,030
			5,601,910
Health Services – 7.61%
113,800	Accredo Heath Incorporated?Accredo Health Incorporated†		2,769,778
192,900	Apria Healthcare Group†		4,506,144
71,800	Covance Incorporated†		1,660,016
44,930	Coventry Health Care Incorporated†		1,478,197
83,775	Davita Incorporated†		1,736,656
110,800	First Health Group Corporation†		2,818,752
120,000	Renal Care Group Incorporated†		3,741,600
89,000	United Surgical Partners International Incorporated†		1,645,610
29,400	Universal Health Services†		1,198,638
			21,555,391
Holding & Other Investment Offices – 1.73%
44,680	Affiliated Managers Group†		1,857,348
190,500	United Dominion Realty Tr		3,044,190
			4,901,538

83

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP OPPORTUNITIES FUND

Shares	Security Names	Value
Industrial & Commercial Machinery & Computer Equipment – 2.31%
32,700	Flowserve Corporation†	$	380,955
184,800	Grant Prideco Incorporated†		2,228,688
59,500	Hydril Company*†		1,486,905
37,900	Zebra Technologies Corporation†		2,440,760
			6,537,308
Insurance Carriers – 4.50%
81,900	Erie Indemniy Company		2,972,970
218,900	Platinum Underwriters Holdings		5,549,115
160,300	Reinsurance Group Of America		4,212,684
			12,734,769
Leather & Leather Products – 0.81%
136,200	Wolverine World Wide Incorporated		2,281,350
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 7.86%
89,500	DRS Technologies Incorporated†		2,238,395
34,700	Edwards Lifesciences Corporation†		950,780
101,500	Fisher Scientific International†		2,837,940
252,900	Hanger Orthopedic Group I†		2,890,647
98,600	Millipore Corporation†		3,224,220
417,014	Perkinelmer Incorporated		3,707,254
268,400	Photon Dynamics Incorporated†		4,391,024
117,700	Tektronix Incorporated†		2,018,555
			22,258,815
Membership Organizations – 4.78%
83,300	Immucor Incorporated†		1,824,270
58,200	Stancorp Financial Group Incorporated		3,000,210
527,400	Symbol Technologies Incorporated		4,540,914
295,400	Tetra Tech Incorporated†		4,176,956
			13,542,350
Miscellaneous Retail – 2.36%
211,400	1-800-Flowerscom Incorporated†		1,420,608
51,100	Michaels Stores Incorporated†		1,278,011
211,700	Petco Animal Supplies Incorporated†		3,990,545
			6,689,164
Motion Pictures – 0.82%
220,600	Metro-Goldwyn-Mayer Incorporated†		2,316,300
Motor Freight Transportation & Warehousing – 0.89%
99,300	US Freightways Corporation		2,513,283
Non-Depository Credit Institutions – 0.58%
46,600	Doral Financial Corporation		1,647,310

84

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SMALL CAP OPPORTUNITIES FUND

Shares	Security Names	Value
Oil & Gas Extraction – 4.09%
207,500	Cal Dive International Incorporated†	$	3,737,075
150,800	Hurricane Hydrocarbons†		1,526,096
301,300	Key Energy Services Incorporated†		3,037,104
186,100	Southwestern Energy Company†		2,437,910
23,800	Stone Energy Corporation†		799,204
1,900	W-H Energy Services Incorporated†		32,528
			11,569,917
Personal Services – 1.98%
225,400	Regis Corporation		5,614,714
Rubber & Miscellaneous Plastics Products – 1.39%
119,400	Reebok International Limited†		3,922,290
Security & Commodity Brokers, Dealers, Exchanges & Services – 0.79%
87,400	Federated Investors Incorporated		2,224,330
Textile Mill Products – 1.35%
166,600	Albany International Corporation		3,816,806
Transportation Equipment – 0.84%
204,800	Wabtec Corporation		2,377,728
Wholesale Trade – Durable Goods – 0.47%
174,300	Pep Boys-Manny Moe & Jack		1,324,680
Wholesale Trade Non-Durable Goods – 2.21%
183,900	Airgas Incorporated†		3,403,989
40,300	Henry Schein Incorporated†		1,817,530
33,700	Performance Food Group†		1,033,242
			6,254,761
Total Common Stock (Cost $253,289,870)			248,050,907

Principal					Interest Rate		Coupon Date
Short-Term Investments – 11.22%
Repurchase Agreements – 11.22%
$	31,772,401	Credit Suisse – 102% Collateralized By U.S. Government			1.37	%	04/01/2003		31,772,401
Total Short-Term Investments (Cost $31,772,401)									31,772,401
Total Investments In Securities (Cost $285,062,271)			98.85	%				$	279,823,308
Other Assets and Liabilities, Net			1.15						3,242,617
Total Net Assets			100.00	%				$	283,065,925

† Non-Income Earning Securities.

The accompanying notes are an integral part of these financial statements.

85

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL COMPANY GROWTH FUND

Face/Share Amount	Security Name	Value
N/A	Small Company Growth Portfolio	$	309,339,732
Total Investment In Master Portfolio – (Cost $331,159,843)			309,339,732

Total Investment in Master Portfolio (Cost $331,159,843)	100.00	%	$	309,339,732
Other Assets and Liabilities, Net	0.0			394
Total Net Assets	100.00	%	$	309,340,126

The accompanying notes are an integral part of these financial statements.

86

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SMALL COMPANY VALUE FUND

Face/Share Amount	Security Name	Value
N/A	Small Company Value Portfolio	$	28,248,033

Total Investment In Master Portfolio – (Cost $31,445,524)				28,248,033
Total Investment in Master Portfolio (Cost $31,445,524)	97.49	%	$	28,248,033
Other Assets and Liabilities, Net	2.51			726,899
Total Net Assets	100.00	%	$	28,974,932

The accompanying notes are an integral part of these financial statements.

87

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SPECIALIZED HEALTH SCIENCES FUND

Shares	Security Name	Value
Common Stock – 96.14%
Agricultural Services – 1.00%
17,800	VCA Antech Incorporated†	$	275,366
Biotechnology – 0.98%
2,900	ML Biotech Holding		270,425
Chemicals And Allied Products – 48.45%
15,900	Adolor Corporation†		157,569
13,200	Alpharma Incorporated		236,676
20,000	Amgen Incorporated†		1,151,000
8,600	Aventis SA†		377,532
22,500	Axcan Pharma Incorporated†		233,100
7,150	Barr Laboratories Incorporated†		407,550
6,950	Biovail Corporation†		277,097
10,800	Forest Laboratories Incorporated†		582,876
23,050	Genentech Incorporated†		806,981
20,500	Gilead Sciences Incorporated†		860,795
24,100	IDEC Pharmaceuticals Corporation†		829,498
8,300	Intermune Incorporated†		178,035
20,000	Medimmune Incorporated†		656,600
20,700	Merck & Company Incorporated		1,133,946
12,550	Mylan Laboratories		360,813
14,000	OSI Pharmaceuticals Incorporated†		224,000
37,950	Pfizer Incorporated		1,182,522
5,500	Pharmaceutical Resources†		233,640
33,100	Pharmacia Corporation		1,433,230
18,600	Teva Pharmaceutical Industries		774,690
32,450	Wyeth		1,227,259
			13,325,409
Engineering, Accounting, Research Management & Related Services – 1.83%
12,500	Affymetrix Incorporated†		325,000
9,500	ICOS Corporation†		177,745
			502,745
Health Services – 4.20%
9,000	Caremark Rx Incorporated†		163,350
15,700	Enzon Pharmaceuticals Incorporated†		178,195
19,700	HCA Incorporated		814,792
			1,156,337
Industrial & Commercial Machinery & Computer Equipment – 2.16%
11,000	Varian Medical Systems†		593,230
Insurance Carriers – 6.68%
14,500	Advancepcs†		410,930
6,600	Aetna Incorporated		325,380

88

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SPECIALIZED HEALTH SCIENCES FUND

Shares	Security Name	Value
Insurance Carriers (continued)
5,100	United Health Group Incorporated	$	467,517
8,250	Wellpoint Health Networks†		633,188
			1,837,015
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 15.39%
7,000	Allergan Incorporated		477,470
11,800	Boston Scientific Corporation†		480,968
17,500	CTI Molecular Imaging Incorporated†		343,000
28,700	Kyphon Incorporated†		252,015
24,600	Medtronic Incorporated		1,109,952
15,400	St Jude Medical Incorporated†		750,750
5,800	Stryker Corporation		398,170
30,300	Therasense Incorporated†		202,404
12,500	Wright Medical Group Incorporated†		219,000
			4,233,729
Medical – Generic Drugs – 4.83%
22,400	Abbott Laboratories		842,464
5,100	Medicis Pharmaceutical – Class A‡		283,508
7,000	Watson Pharmaceuticals†		201,390
			1,327,362
Miscellaneous Retail – 0.42%
7,500	NPS Pharmaceutical†		115,950
Wholesale Trade – Durable Goods – 4.08%
19,400	Johnson & Johnson		1,122,677
Wholesale Trade Non-Durable Goods – 6.12%
19,300	Amerisourcebergen Corporation		1,013,250
11,750	Cardinal Health Incorporated		669,398
			1,682,648
Total Common Stock (Cost $26,108,415)			26,442,893

Principal				Interest Rate		Maturity Date
Short-Term Investments – 3.48%
Repurchase Agreements – 3.48%
$955,961	Credit Suisse – 102% Collateralized by U.S. Government			1.37	%	04/01/2003	955,961
Total Short-Term Investments (Cost $955,961)							955,961
Total Investments In Securities (Cost $27,064,376)		99.62	%				27,398,854
Other Assets And Liabilities		0.38					104,149
Total Net Assets		100.00	%				$27,503,003

† Non-Income earning securities.

The accompanying notes are an integral part of these financial statements.

89

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SPECIALIZED TECHNOLOGY FUND

Shares	Security Name	Value
Common Stock – 96.19%
Business Services – 30.90%
18,575	Affiliated Computer Services†	$	822,130
38,430	Bea Systems Incorporated†		391,602
13,570	Business Objects SA†		221,870
3,380	Cognizant Technology†		227,643
18,490	Ebay Incorporated†		1,577,012
4,540	Infosys Technologies Limited		278,529
20,370	Mercury Interactive Corporation†		604,582
86,520	Microsoft Corporation		2,094,649
231,000	Misys PLC†		552,260
20,430	Netiq Corporation†		227,999
60,820	Network Associates Incorporated†		839,924
32,270	Oracle Corporation†		350,097
136,700	Red Hat Incorporated†		742,281
33,090	Sap AG		627,386
12,790	Symantec Corporation†		501,112
5,490	Unisys Corporation†		50,837
24,130	Verisign Incorporated†		210,896
10,870	Veritas Software Corporation†		191,095
308,230	Vignette Corporation†		468,510
37,260	Yahoo Incorporated†		894,985
220	Yahoo Japan Corporation†		1,808,906
			13,684,305
Chemicals & Allied Products – 1.42%
13,280	Gilead Sciences Incorporated†		557,627
Communications – 6.59 %
104,900	Amdocs Limited†		1,393,072
44,390	USA Networks Incorporated†		1,189,208
			2,582,280
Electrical Products – 0.23%
405	Samsung Electronic		91,690
Electronic & Other Electrical Equipment & Components, Except Computer Equipment – 27.50%
219,740	Alcatel SA		1,514,009
43,530	Cypress Semiconductor†		300,357
26,300	Integrated Circuit System†		570,710
96,910	Intel Corporation		1,577,695
46,990	Marvell Technology Group†		995,718
12,660	Maxim Integrated Products		457,279
67,010	Network Appliance Incorporated†		749,842
63,910	Nokia		895,379
7,030	Qlogic Corporation†		261,094
1,610	Rf Micro Devices Incorporated†		9,707

90

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SPECIALIZED TECHNOLOGY FUND

Shares	Security Name	Value
Electronic & Other Electrical Equipment & Components, Except Computer Equipment (continued)
51,540	Sina.Com†	$	412,835
5,910	Skyworks Solutions Incorporated†		36,819
57,580	Sohu.Com, Incorporated†		629,349
3,590	STmicro Electronics N V		67,851
89,058	Taiwan Semiconductor Manufacturing†		609,157
1,520	Texas Instruments Incorporated		24,882
72,050	Utstarcom Incorporated†		1,440,280
9,780	Xilinx Incorporated†		228,950
			10,781,913
Electronics – Semiconductor – 0.46%
10,650	National Semiconductor Corporation†		181,476
Holding & Other Investment Offices – 3.64%
16,350	Ishares NASDAQ Biotech†		835,485
51,000	Softbank Corporation		593,523
			1,429,008
Industrial & Commercial Machinery & Computer Equipment – 13.11%
16,920	CDWComputer Centers Incorporated†		690,336
41,210	Cisco Systems Incorporated†		531,609
26,450	Dell Computer Corporation†		722,350
10,510	Emulex Corporation†		201,267
108,630	Hewlett-Packard Company		1,689,197
6,030	IBMCorporation		472,933
21,710	Jabil Circuit Incorporated†		379,925
55,410	Juniper Networks Incorporated†		452,700
			5,140,317
Internet Content – 1.08%
28,270	Netease.Com Incorporated ADR†		422,637
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 1.42%
11,000	Canon Incorporated†		384,045
8,615	Microchip Technology Incorporated		171,439
			555,484
Miscellaneous Manufacturing Industries – 1.00%
30,350	Tyco International Limited		390,301
Miscellaneous Retail – 2.14%
32,250	Amazon.Com Incorporated†		839,467
Semiconductors – 0.50%
64,600	United Microelectronics†		194,445
Transportation Services – 2.00%
15,150	Expedia Incorporated†		782,648

91

STOCK FUNDS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SPECIALIZED TECHNOLOGY FUND

Shares	Security Name	Value
Wholesale Trade – Durable Goods – 0.21%
720	Samsung Electronics-GDR	$	81,501
Total Common Stock (Cost $36,288,033)			37,715,099

Principal					Interest Rate	Maturity Date
Short-Term Investments – 3.34%
Repurchase Agreements – 3.34%
$	1,308,968	Credit Suisse – 102% Collateralized by US Government Securities			1.37%	04/01/2003		1,308,968
Total Short-Term Investments (Cost $1,308,968)								1,308,968
Purchased Put Option – 0.33%
Contracts					Price/Expiration Date
	80	NASDAQ 100			$975/April 2003			128,000
Total Purchased Put Option (Cost $403,852)								128,000
Total Investments in Securities (Cost $38,000,853)			99.86	%				39,152,067
Other Assets and Liabilities, Net			0.14					56,784
Total Net Assets			100.00	%			$	39,208,851

SCHEDULE OF SECURITIES SOLD SHORT – MARCH 31, 2003
Shares		Description
(207,300	)	Lucent Technologies, Incorporated†	$	(304,731	)
(26,300	)	Sandisk Corporation†		(442,366	)
(48,940	)	Telefonaktiebolaget Lm Er†		(311,258	)
Total Securities Sold Short (Total Proceeds $1,047,869)			$	(1,058,355	)

† Non income producing securities.

The accompanying notes are an integral part of these financial statements.

92

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93

STOCK FUNDS STATEMENTS OF ASSETS AND LIABILITIES — MARCH 31, 2003 (UNAUDITED)

	Diversified Equity			Diversified Small Cap			Equity Income
ASSETS
INVESTMENTS:
In securities, at market value (see cost below)	$	1,121,543,089		$	198,400,077		$	1,010,094,325
Repurchase Agreement		0			0			0
TOTAL INVESTMENTS AT MARKET VALUE	$	1,121,543,089		$	198,400,077		$	1,010,094,325
Cash		0			0			0
Collateral for security loaned		0			0			0
Receivable for dividends and interest and other receivables		0			0			0
Receivable for investments sold		0			0			0
Receivable for Fund shares issued		1,485,218			942,028			443,709
Receivable for options and short sales		0			0			0
Prepaid expenses and other assets		0			0			0
Receivable from Advisor and Affiliates		0			0			0
TOTAL ASSETS		1,123,028,307			199,342,105			1,010,538,034
LIABILITIES
Put/Call options written, at fair value		0			0			0
Securities sold short, at fair value		0			0			0
Payable for investments purchased		0			0			0
Payable for securities loaned		0			0			0
Dividends Payable		0			0			0
Payable for Fund shares redeemed		159,480			4,000			182,306
Payable to custodian		0			0			0
Payable for investment advisor and affiliates		322,845			45,370			121,591
Payable to other related parties		95,058			18,269			180,598
Accrued expenses and other liabilities		(159,173	)		117,594			(121,174	)
Payable for daily variation margin on futures contracts		0			0			0
TOTAL LIABILITIES		418,210			185,233			363,321
TOTAL NET ASSETS	$	1,122,610,097		$	199,156,872		$	1,010,174,713
NET ASSETS CONSIST OF:
Paid-in capital	$	1,090,175,363		$	238,799,915		$	1,250,602,952
Undistributed net investment income (loss)		5,405,936			(157,503	)		183,735
Undistributed net realized gain (loss) on investments and foreign currency transactions and futures		(54,239,336	)		(23,379,170	)		219,667
Net unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currencies		85,195,543			(16,106,370	)		(240,831,641	)
Net unrealized appreciation (depreciation) of forward foreign currency		0			0			0
Net unrealized appreciation (depreciation) of futures		0			0			0
Net unrealized appreciation (depreciation) of options and short sales		(3,927,409	)		0			0
TOTAL NET ASSETS AND OFFERING PRICE PER SHARE	$	1,122,610,097		$	199,156,872		$	1,010,174,713
Net assets – Class A	$	57,016,039			N/A		$	120,455,193
Shares outstanding – Class A		1,933,543			N/A			4,520,224
Net asset value per share – Class A	$	29.49			N/A		$	26.65
Maximum offering price per share – Class A	$	31.29			N/A		$	28.28
Net assets – Class B	$	82,058,639			N/A		$	77,540,489
Shares outstanding – Class B		2,867,366			N/A			2,910,750
Net asset value and offering price per share – Class B	$	28.62			N/A		$	26.64
Net assets – Class C	$	7,000,426			N/A		$	7,874,961
Shares outstanding – Class C		241,331			N/A			286,938
Net asset value per share – Class C	$	29.01			N/A		$	27.44
Maximum offering price per share – Class C	$	29.30			N/A		$	27.72
Net assets – Institutional Class	$	976,534,993		$	199,156,872		$	804,304,070
Shares outstanding – Institutional Class		33,131,779			23,359,726			30,217,757
Net asset value and offering price per share – Institutional Class	$	29.47		$	8.54		$	26.62
INVESTMENT AT COST (NOTE 3)	$	1,036,347,546		$	214,506,447		$	1,250,925,966
SECURITIES ON LOAN, AT MARKET VALUE (NOTE 2)
PROCEEDS FOR SECURITIES SOLD SHORT (NOTE 2)
PREMIUMS RECEIVED ON WRITTEN OPTIONS (NOTE 2)

The accompanying notes are an integral part of these financial statements.

94

STATEMENTS OF ASSETS AND LIABILITIES — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

Equity Index			Equity Value			Growth			Growth Equity			Index			International Equity			Large Cap Appreciation
$	313,575,679		$	57,025,432		$	170,986,839		$	380,153,554		$	651,398,522		$	371,190,628		$	13,959,978
	6,837,435			521,000			4,663,872			0			0			34,009,805			0
$	320,413,114		$	57,546,432		$	175,650,711		$	380,153,554		$	651,398,522		$	405,200,433		$	13,959,978
	50,000			54,253			50,000			50,000			0			50,000			0
	37,308,454			2,111,472			16,706,836			0			0			22,492,720			0
	432,791			137,501			36,910			0			0			1,868,236			0
	537,064			0			1,945,646			0			0			5,107,911			0
	57,685			4,970			1,014,328			123,949			703,949			1,022,311			19,905
	0			0			0			0			0			0			0
	0			0			0			0			0			3,545			0
	0			0			0			0			0			0			16,723
	358,799,108			59,854,628			195,404,431			380,327,503			652,102,471			435,745,156			13,996,606
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	238,098			0			1,710,461			0			0			1,281,278			0
	37,308,454			2,111,472			16,706,836			0			0			22,492,720			0
	0			0			0			0			0			0			0
	225,974			573			105,699			5,310			2,877			622,661			0
	0			0			0			0			0			0			0
	(11,444	)		(5,654	)		46,249			114,702			45,718			391,275			0
	101,559			29,665			39,189			65,454			5,459			30,224			17,639
	61,781			(51,351	)		80,554			(257,425	)		73,985			258,175			116,342
	143,100			0			0			0			0			0			0
	38,067,522			2,084,705			18,688,988			(71,959	)		128,039			25,076,333			133,981
$	320,731,586		$	57,769,923		$	176,715,443		$	380,399,462		$	651,974,432		$	410,668,823		$	13,862,625
$	229,509,875		$	74,914,221		$	253,183,108		$	346,707,677		$	595,093,598		$	661,472,780		$	15,739,770
	885,743			32,286			(514,418	)		(1,364,807	)		2,918,196			(82,275	)		(6,471	)
	4,540,540			(3,668,116	)		(84,206,188	)		(62,661,597	)		(52,809,980	)		(172,087,084	)		(1,969,020	)
	86,031,203			(13,508,468	)		8,252,941			97,718,189			106,772,618			(78,629,625	)		98,346
	0			0			0			0			0			(4,973	)		0
	(235,775	)		0			0			0			0			0			0
	0			0			0			0			0			0			0
$	320,731,586		$	57,769,923		$	176,715,443		$	380,399,462		$	651,974,432		$	410,668,823		$	13,862,625
$	271,217,162		$	11,869,869		$	116,641,872		$	10,837,296			N/A		$	20,873,269		$	889,004
	7,186,392			1,729,632			12,322,968			551,469			N/A			2,605,095			115,733
$	37.74		$	6.86		$	9.47		$	19.65			N/A		$	8.01		$	7.68
$	40.04		$	7.28		$	10.05		$	20.85			N/A		$	8.50		$	8.15
$	49,514,424		$	19,752,643		$	14,720,209		$	12,787,427			N/A		$	24,652,672		$	1,116,254
	1,313,807			3,555,012			2,264,094			693,719			N/A			3,186,715			147,100
$	37.69		$	5.56		$	6.50		$	18.43			N/A		$	7.74		$	7.59
	N/A		$	596,129			N/A		$	2,148,796			N/A		$	2,065,407		$	303,173
	N/A			107,409			N/A			112,432			N/A			267,351			39,946
	N/A		$	5.55			N/A		$	19.11			N/A		$	7.73		$	7.59
	N/A		$	5.61			N/A		$	19.31			N/A		$	7.81		$	7.67
	N/A		$	25,551,282		$	45,353,362		$	354,625,943		$	651,974,432		$	363,077,475		$	11,554,194
	N/A			3,730,273			4,068,505			17,934,033			19,126,028			45,311,744			1,499,183
	N/A		$	6.85		$	11.15		$	19.77		$	34.09		$	8.01		$	7.71
$	234,381,911		$	71,054,900		$	167,397,770		$	282,435,365		$	544,625,904		$	483,838,576		$	13,861,632
$	34,751,649		$	1,930,350		$	15,810,672								$	20,851,337

95

STOCK FUNDS STATEMENTS OF ASSETS AND LIABILITIES — MARCH 31, 2003 (UNAUDITED)

	Large Company Growth			Mid Cap Growth
ASSETS
INVESTMENTS:
In securities, at market value (see cost below)	$	1,664,591,149		$	7,272,533
Repurchase Agreement		—			745,000
TOTAL INVESTMENTS AT MARKET VALUE	$	1,664,591,149		$	8,017,533
Cash		500			85,312
Collateral for security loaned		0			2,553,765
Receivable for dividends and interest and other receivables		0			2,928
Receivable for investments sold		0			69,032
Receivable for Fund shares issued		2,364,734			5,116
Receivable for options and short sales		0			0
Prepaid expenses and other assets		0			27,263
Receivable from Advisor and Affiliates		0			1,150
TOTAL ASSETS		1,666,956,383			10,762,099
LIABILITIES
Put/Call options written, at fair value		0			0
Securities sold short, at fair value		0			0
Payable for investments purchased		0			238,859
Payable for securities loaned		0			2,553,765
Dividends Payable		0			0
Payable for Fund shares redeemed		318,513			9,389
Payable to custodian		0			0
Payable for investment advisor and affiliates		185,647			0
Payable to other related parties		252,943			6,368
Accrued expenses and other liabilities		496,678			0
Payable for daily variation margin on futures contracts		0			0
TOTAL LIABILITIES		1,253,781			2,808,381
TOTAL NET ASSETS	$	1,665,702,602		$	7,953,718
NET ASSETS CONSIST OF:
Paid-in capital	$	2,444,352,371		$	16,393,710
Undistributed net investment income (loss)		(6,960,535	)		(56,368	)
Undistributed net realized gain (loss) on investments and foreign currency transactions and futures		(365,937,727	)		(8,225,290	)
Net unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currencies		(405,751,507	)		(158,334	)
Net unrealized appreciation (depreciation) of forward foreign currency		0			0
Net unrealized appreciation (depreciation) of futures		0			0
Net unrealized appreciation (depreciation) of options and short sales		0			0
TOTAL NET ASSETS AND OFFERING PRICE PER SHARE	$	1,665,702,602		$	7,953,718
Net assets – Class A	$	173,395,393		$	3,769,724
Shares outstanding – Class A		4,750,046			942,590
Net asset value per share – Class A	$	36.50		$	4.00
Maximum offering price per share – Class A	$	38.73		$	4.24
Net assets – Class B	$	212,211,733		$	3,832,251
Shares outstanding – Class B		6,348,589			975,202
Net asset value and offering price per share – Class B	$	33.43		$	3.93
Net assets – Class C	$	29,290,240		$	351,743
Shares outstanding – Class C		874,561			89,517
Net asset value per share – Class C	$	33.49		$	3.93
Maximum offering price per share – Class C	$	33.83		$	3.97
Net assets – Institutional Class	$	1,250,805,236			N/A
Shares outstanding – Institutional Class		36,170,803			N/A
Net asset value and offering price per share – Institutional Class	$	34.58			N/A
INVESTMENT AT COST (NOTE 3)	$	2,070,342,656		$	8,175,867
SECURITIES ON LOAN, AT MARKET VALUE (NOTE 2)				$	2,390,976
PROCEEDS FOR SECURITIES SOLD SHORT (NOTE 2)
PREMIUMS RECEIVED ON WRITTEN OPTIONS (NOTE 2)

The accompanying notes are an integral part of these financial statements.

96

STATEMENTS OF ASSETS AND LIABILITIES — MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SIFE Specialized Financial Services			Small Cap Growth			Small Cap Opportunities			Small Company Growth			Small Company Value			Specialized Health Sciences			Specialized Technology
$	423,015,487		$	132,136,646		$	248,050,907		$	309,339,732		$	28,248,033		$	26,442,893		$	37,843,099
	78,415,000			11,387,000			31,772,401			—			—			955,961			1,308,968
$	501,430,487		$	143,523,646		$	279,823,308		$	309,339,732		$	28,248,033		$	27,398,854		$	39,152,067
	1,678			51,972			50,007			0			50,000			150,000			150,031
	56,836,535			37,193,357			27,915,264			0			0			0			15,106,428
	618,695			27,136			32,228			0			0			10,537			37,042
	8,220,848			1,654,896			4,764,920			0			0			244,482			578,883
	16,094			138,228			255,960			4			635,415			24,348			33,231
	0			0			0			0			0			0			1,047,868
	0			0			0			72,797			57,319			22,192			0
	0			0			0			0			0			0			0
	567,124,337			182,589,235			312,841,687			309,412,533			28,990,767			27,850,413			56,105,550
	355,000			0			0			0			0			0			134,460
	0			0			0			0			0			0			1,058,355
	40,653,149			644,854			1,558,147			0			0			299,814			526,126
	56,836,535			37,193,357			27,915,264			0			0			0			15,106,428
	0			0			0			0			0			0			0
	94,439			76,363			43,202			0			2,125			15,967			8,910
	0			0			0			0			0			0			0
	339,293			39,291			231,642			31,985			5,013			13,417			11,613
	112,012			47,154			26,075			0			8,697			18,212			25,608
	310,929			30,458			1,432			40,422			0			0			25,199
	0			0			0			0			0			0			0
	98,701,357			38,031,477			29,775,762			72,407			15,835			347,410			16,896,699
$	468,422,980		$	144,557,758		$	283,065,925		$	309,340,126		$	28,974,932		$	27,503,003		$	39,208,851
$	413,887,525		$	504,761,046		$	311,742,922		$	482,235,277		$	33,534,913		$	36,629,977		$	174,226,685
	(743,799	)		(955,952	)		(910,735	)		(1,824,705	)		46,720			(217,322	)		(357,437	)
	51,037,938			(353,535,458	)		(22,527,299	)		(149,250,335	)		(1,409,210	)		(9,244,737	)		(135,845,360	)
	3,972,405			(5,711,878	)		(5,238,963	)		(21,820,111	)		(3,197,491	)		335,085			1,150,996
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	268,911			0			0			0			0			0			33,967
$	468,422,980		$	144,557,758		$	283,065,925		$	309,340,126		$	28,974,932		$	27,503,003		$	39,208,851
$	447,919,829		$	65,290,206			N/A			N/A		$	5,204,978		$	10,896,450		$	13,903,983
	127,745,872			6,631,421			N/A			N/A			612,205			1,328,112			5,688,929
$	3.51		$	9.85			N/A			N/A		$	8.50		$	8.20		$	2.44
$	3.72		$	10.45			N/A			N/A		$	9.02		$	8.70		$	2.59
$	18,929,442		$	24,172,895			N/A			N/A		$	4,763,193		$	14,701,100		$	20,756,977
	5,402,877			2,571,062			N/A			N/A			565,201			1,819,652			8,655,135
$	3.50		$	9.40			N/A			N/A		$	8.43		$	8.08		$	2.40
$	1,573,709		$	7,617,614			N/A			N/A		$	513,354		$	1,905,453		$	4,547,891
	450,726			811,162			N/A			N/A			60,942			235,643			1,898,902
$	3.49		$	9.39			N/A			N/A		$	8.42		$	8.09		$	2.40
$	3.53		$	9.48			N/A			N/A		$	8.51		$	8.17		$	2.42
	N/A		$	47,477,043		$	283,065,925		$	309,340,126		$	18,493,407			N/A			N/A
	N/A			4,718,595			13,058,749			17,309,507			2,170,740			N/A			N/A
	N/A		$	10.06		$	21.68		$	17.87		$	8.52			N/A			N/A
$	497,458,082		$	149,235,524		$	285,062,271		$	331,159,843		$	31,445,524		$	27,064,376		$	38,000,853
$	54,379,779		$	34,799,849		$	26,939,795											$	13,923,031
																		$	1,047,869
$	623,911																	$	178,914

97

STOCK FUNDS STATEMENTS OF OPERATIONS — FOR THE SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED)

	Diversified Equity			Diversified Small Cap			Equity Income
INVESTMENT INCOME
Dividends(1)	$	8,610,090		$	907,574		$	12,992,780
Interest		324,781			72,301			154,143
Securities lending income		957,371			141,748			2,254,734
Net Expenses from Portfolios		(3,772,538	)		(696,415	)		(3,780,677	)
TOTAL INVESTMENT INCOME		6,119,704			425,208			11,620,980
EXPENSES
Advisory fees		1,483,712			247,014			0
Administration fees		848,178			149,331			799,290
Custody fees		0			0			0
Shareholder servicing fees		193,678			98,805			281,926
Portfolio accounting fees		24,140			11,995			23,718
Transfer Agent
Class A		59,194			N/A			141,367
Class B		99,020			N/A			123,710
Class C		7,318			N/A			8,983
Institutional Class		386,704			41,242			321,839
Class O		N/A			N/A			N/A
Distribution fees
Class B		327,857			N/A			334,238
Class C		27,518			N/A			30,054
Legal and audit fees		18,394			6,127			13,267
Registration fees		36,577			13,086			49,547
Directors’ fees		3,112			3,112			3,112
Shareholder reports		69,070			922			47,348
Other		11,649			15,046			18,197
TOTAL EXPENSES		3,596,121			586,680			2,196,596
LESS:
Waived fees and reimbursed expenses		(892,329	)		(97,653	)		(598,454	)
Net expenses		2,703,792			489,027			1,598,142
NET INVESTMENT INCOME (LOSS)		3,415,912			(63,819	)		10,022,838
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM:
Securities		(22,475,365	)		(4,240,899	)		7,938,705
Financial futures transactions		4,206,634			(276,888	)		0
Foreign currency transactions		7,824			0			4,317
Options		0			0			0
Securities transactions allocated from Portfolios		1,299,835			(947,898	)		2,972,779
Financial futures transactions allocated from Portfolios		76,595			(76,816	)		0
Foreign currency contracts allocated from Portfolios		(751	)		0			0
NET REALIZED GAIN (LOSS) FROM INVESTMENTS		(16,885,228	)		(5,542,501	)		10,915,801
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
Securities		0			0			0
Financial futures transactions		0			0			0
Foreign currency contracts		0			0			0
Options		0			0			0
Short sales		0			0			0
Securities transactions allocated from Portfolios		44,491,867			2,687,738			6,445,841
Financial futures transactions allocated from Portfolios		(3,282,098	)		305,477			0
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS		41,209,769			2,993,215			6,445,841
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS		24,324,541			(2,549,286	)		17,361,642
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	27,740,453		$	(2,613,105	)	$	27,384,480
(1) Net of foreign withholding taxes	$	72,393		$	0		$	0

The accompanying notes are an integral part of these financial statements.

98

STATEMENTS OF OPERATIONS — FOR THE SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

Equity Index			Equity Value			Growth			Growth Equity			Index			International Equity			Large Cap Appreciation
$	2,857,218		$	862,498		$	521,754		$	1,715,089		$	5,213,558		$	2,534,963		$	51,966
	57,043			3,657			19,564			142,063			159,295			321,849			3,077
	260,989			32,509			74,213			195,490			812,197			27,195			3,718
	0			0			0			(1,664,010	)		(428,551	)		0			(39,115	)
	3,175,250			898,664			615,531			388,632			5,756,499			2,884,007			19,646
	420,689			241,879			727,582			499,759			0			2,221,985			0
	302,047			56,731			170,253			285,311			497,675			371,030			7,659
	33,655			6,450			19,402			0			0			225,692			0
	420,654			44,287			171,430			34,051			0			70,050			2,944
	34,379			31,563			28,708			23,130			13,295			69,992			67,223
	327,999			31,390			204,742			13,823			N/A			33,803			6,735
	96,487			59,895			54,950			17,909			N/A			77,893			6,313
	0			1,011			0			4,804			N/A			4,842			1,704
	0			19,716			13,218			219,355			305,160			64,895			17,973
	2,073			N/A			N/A			N/A			N/A			N/A			N/A
	196,240			82,906			66,521			51,450			N/A			104,784			4,175
	N/A			2,201			N/A			7,848			N/A			8,302			996
	10,552			17,500			18,000			10,936			16,812			18,753			10,509
	21,750			2,336			0			13,672			43,928			93,014			14,436
	2,090			2,090			2,089			3,112			3,112			2,090			3,112
	32,669			6,802			30,183			27,431			28,071			13,083			9,022
	12,887			3,625			22,576			19,022			7,645			5,779			5,412
	1,914,171			610,382			1,529,654			1,231,613			915,698			3,385,987			158,213
	(593,597	)		(207,134	)		(399,707	)		(305,810	)		(521,970	)		(419,986	)		(136,463	)
	1,320,574			403,248			1,129,947			925,803			393,728			2,966,001			21,750
	1,854,676			495,416			(514,416	)		(537,171	)		5,362,771			(81,994	)		(2,104	)
	5,046,810			(1,708,940	)		(7,070,345	)		(35,266,524	)		(720,510	)		(87,925,276	)		0
	(440,697	)		0			0			(215,431	)		(3,050,408	)		0			0
	0			0			0			3,713			0			(71,452	)		0
	0			0			0			0			0			0			0
	0			0			0			(1,209,041	)		(1,556,270	)		0			(832,844	)
	0			0			0			(48,552	)		(717,996	)		0			0
	0			0			0			(437	)		0			0			0
	4,606,113			(1,708,940	)		(7,070,345	)		(36,736,272	)		(6,045,184	)		(87,996,728	)		(832,844	)
	7,908,185			3,677,689			9,654,336			24,947,597			0			56,644,802			0
	864,150			0			0			0			0			0			0
	0			0			0			0			0			(4,973	)		0
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	0			0			0			15,678,327			24,332,420			0			801,043
	0			0			0			230,448			5,035,074			0			0
	8,772,335			3,677,689			9,654,336			40,856,372			29,367,494			56,639,829			801,043
	13,378,448			1,968,749			2,583,991			4,120,100			23,322,310			(31,356,899	)		(31,801	)
$	15,233,124		$	2,464,165		$	2,069,575		$	3,582,929		$	28,685,081		$	(31,438,893	)	$	(33,905	)
$	0		$	0		$	0		$	49,075		$	0		$	0		$	0

99

STOCK FUNDS STATEMENTS OF OPERATIONS — FOR THE SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED)

	Large Company Growth			Mid Cap Growth
INVESTMENT INCOME
Dividends(1)	$	5,370,317		$	13,705
Interest		175,864			1,940
Securities lending income		917,592			4,033
Net Expenses from Portfolios		(6,353,870	)		0
TOTAL INVESTMENT INCOME		109,903			19,678
EXPENSES
Advisory fees		0			31,479
Administration fees		1,166,259			7,443
Custody fees		0			840
Shareholder servicing fees		536,524			10,493
Portfolio accounting fees		31,815			24,723
Transfer Agent
Class A		164,089			7,327
Class B		474,647			9,692
Class C		34,644			3,453
Institutional Class		408,105			N/A
Class O		N/A			N/A
Distribution fees
Class B		859,698			14,953
Class C		112,113			1,768
Legal and audit fees		36,984			13,486
Registration fees		64,748			863
Directors’ fees		3,112			2,090
Shareholder reports		5,914			721
Other		170,061			367
TOTAL EXPENSES		4,068,713			129,698
LESS:
Waived fees and reimbursed expenses		(1,145,253	)		(53,652	)
Net expenses		2,923,460			76,046
NET INVESTMENT INCOME (LOSS)		(2,813,557	)		(56,368	)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM:
Securities		0			(6,293	)
Financial futures transactions		0			0
Foreign currency transactions		0			0
Options		0			0
Short Sales		0			0
Securities transactions allocated from Portfolios		(22,687,591	)		0
Financial futures transactions allocated from Portfolios		0			0
Foreign currency contracts allocated from Portfolios		0			0
Affiliated Underlying Funds		0			0
NET REALIZED GAIN (LOSS) FROM INVESTMENTS		(22,687,591	)		(6,293	)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
Securities		0			797,224
Financial futures transactions		0			0
Foreign currency contracts		0			0
Options		0			0
Short sales		0			0
Securities transactions allocated from Portfolios		98,376,584			0
Financial futures transactions allocated from Portfolios		0			0
Foreign currency contracts allocated from Portfolios		0			0
Affiliated Underlying Funds		0			0
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS		98,376,584			797,224
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS		75,688,993			790,931
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	72,875,436		$	734,563

(1) Net of foreign withholding taxes

The accompanying notes are an integral part of these financial statements.

100

STATEMENTS OF OPERATIONS — FOR THE SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED) STOCK FUNDS

SIFE Specialized Financial Services			Small Cap Growth			Small Cap Opportunities			Small Company Growth			Small Company Value			Specialized Health Sciences			Specialized Technology
$	5,724,652		$	141,487		$	529,204		$	516,903		$	202,183		$	79,037		$	71,127
	134,675			98,971			206,111			67,205			5,593			5,225			20,999
	15,646			79,962			161,879			63,354			17,403			0			25,670
	0			0			0			(1,497,215	)		(92,394	)		0			0
	5,874,973			320,420			897,194			(849,753	)		132,785			84,262			117,796
	2,398,957			769,218			1,346,570			0			0			136,469			223,087
	445,800			149,338			248,166			240,512			16,829			25,430			39,902
	50,504			17,093			29,924			0			0			10,055			14,873
	631,304			169,408			149,619			159,219			19,747			35,914			53,116
	24,791			29,569			33,045			9,951			2,108			24,959			22,694
	276,658			119,659			N/A			N/A			883			15,157			40,216
	35,631			119,242			N/A			N/A			854			29,804			70,756
	5,031			19,587			N/A			N/A			317			5,887			9,001
	N/A			39,740			47,344			114,878			2,709			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A			N/A
	76,041			103,920			N/A			N/A			19,390			56,975			85,582
	6,528			30,335			N/A			N/A			1,110			7,587			18,088
	21,384			17,750			17,750			8,769			5,916			13,486			16,496
	37,397			36,790			2,159			15,454			5,249			3,607			19,068
	3,915			2,090			2,090			3,112			3,112			2,090			2,090
	74,795			20,342			18,039			9,289			3,281			1,290			5,844
	47,398			9,809			6,864			4,442			1,970			2,022			1,687
	4,136,134			1,653,890			1,901,570			565,626			83,475			370,732			622,500
	(641,999	)		(377,518	)		(93,641	)		(97,479	)		0			(69,148	)		(147,267	)
	3,494,135			1,276,372			1,807,929			468,147			83,475			301,584			475,233
	2,380,838			(955,952	)		(910,735	)		(1,317,900	)		49,310			(217,322	)		(357,437	)
	55,633,044			(23,198,743	)		(21,743,338	)		0			0			(2,102,242	)		(4,558,230	)
	0			0			0			0			0			0			0
	0			0			0			0			0			0			(1,951	)
	(824,144	)		0			0			0			0			0			743,115
	0			0			0			0			0			0			0
	0			0			0			(22,077,142	)		(408,033	)		0			0
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	54,808,900			(23,198,743	)		(21,743,338	)		(22,077,142	)		(408,033	)		(2,102,242	)		(3,817,066	)
	(80,933,327	)		27,096,393			25,669,375			0			0			3,635,983			7,934,974
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	268,911			0			0			0			0			0			(125,464	)
	0			0			0			0			0			0			(8,718	)
	0			0			0			34,081,601			(339,873	)		0			0
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	0			0			0			0			0			0			0
	(80,664,416	)		27,096,393			25,669,375			34,081,601			(339,873	)		3,635,983			7,800,792
	(25,855,516	)		3,897,650			3,926,037			12,004,459			(747,906	)		1,533,741			3,983,726
$	(23,474,678	)	$	2,941,698		$	3,015,302		$	10,686,559		$	(698,596	)	$	1,316,419		$	3,626,289

101

STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS

	DIVERSIFIED EQUITY
	(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets	$	1,164,638,682		$	1,592,497,168
OPERATIONS:
Net investment income (loss)		3,415,912			5,993,168
Net realized gain (loss) on sale of investments and foreign currency transactions		(16,885,228	)		(25,284,943	)
Net realized gain (loss) on foreign currency contracts					0
Net realized gain (loss) on short sales					0
Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency, futures, options and short sales		41,209,769			(250,233,028	)
Net change in unrealized appreciation (depreciation) of forward foreign currency contracts		0			0
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		27,740,453			(269,524,803	)
Distributions to shareholders:
Net investment income
Class A		(209,237	)		(302,371	)
Class B		0			0
Class C		0			0
Institutional Class		(7,013,682	)		(8,997,729	)
Class O		N/A			N/A
Net realized gain on sales of investments
Class A		0			(869,384	)
Class B		0			(1,339,906	)
Class C		0			(94,277	)
Institutional Class		0			(16,199,569	)
Class O		N/A			N/A
Capital shares transactions:
Proceeds from shares sold – Class A		4,395,025			14,988,878
Reinvestment of dividends – Class A		205,208			1,149,209
Cost of shares redeemed – Class A		(6,380,712	)		(17,070,590	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS A		(1,780,479	)		(932,503	)
Proceeds from shares sold – Class B		4,535,364			14,480,998
Reinvestment of dividends – Class B		0			1,307,276
Cost of shares redeemed – Class B		(8,964,251	)		(19,778,745	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS B		(4,428,887	)		(3,990,471	)
Proceeds from shares sold – Class C		1,386,508			3,756,782
Reinvestment of dividends – Class C		0			94,013
Cost of shares redeemed – Class C		(1,198,750	)		(2,930,367	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS C		187,758			920,428
Proceeds from shares sold – Institutional Class		70,958,986			152,510,209
Reinvestment of dividends – Institutional Class		6,469,293			24,212,725
Cost of shares redeemed – Institutional Class		(133,952,790	)		(303,250,835	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS INSTITUTIONAL		(56,524,511	)		(126,527,901	)
Proceeds from shares sold – Class O		N/A			N/A
Reinvestment of dividends – 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
INCREASE IN NET ASSETS		(42,028,585	)		(427,858,486	)
NET ASSETS:
ENDING NET ASSETS	$	1,122,610,097		$	1,164,638,682
Shares issued and redeemed:
Shares sold – Class A		142,105			394,968
Shares issued in reinvestment of dividends – Class A		6,542			28,625
Shares redeemed – Class A		(211,039	)		(465,868	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS A		(62,392	)		(42,275	)
Shares sold – Class B		151,015			391,078
Shares issued in reinvestment of dividends – Class B		0			33,264
Shares redeemed – Class B		(304,217	)		(565,411	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS B		(153,202	)		(141,069	)
Shares sold – Class C		45,748			101,025
Shares issued in reinvestment of dividends – Class C		0			2,359
Shares redeemed – Class C		(40,089	)		(81,950	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS C		5,659			21,434
Shares sold – Institutional Class		2,286,797			4,067,240
Shares issued in reinvestment of dividends – Institutional Class		206,423			603,627
Shares redeemed – Institutional Class		(4,307,256	)		(8,179,275	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – INSTITUTIONAL CLASS		(1,814,036	)		(3,508,408	)
Shares sold – Class O		N/A			N/A
Shares issued in conversion – Class O		N/A			N/A
Shares issued in reinvestment of dividends – Class O		N/A			N/A
Shares redeemed – Class O		N/A			N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS O		N/A			N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME	$	5,405,936		$	9,212,946

The accompanying notes are an integral part of these financial statements.

102

STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS

DIVERSIFIED SMALL CAP						EQUITY INCOME						EQUITY INDEX
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
$	192,986,629		$	141,341,050		$	1,125,839,620		$	1,470,544,561		$	322,511,386		$	454,210,388
	(63,819	)		(466,616	)		10,022,838			19,519,361			1,854,676			3,271,201
	(5,542,501	)		(12,721,624	)		10,915,801			77,120,889			4,606,113			16,991,461
	2,993,215			(9,988,853	)		6,445,841			(373,564,882	)		8,772,335			(107,421,431	)
	0			0			0			0			0			0
	(2,613,105	)		(23,177,093	)		27,384,480			(276,924,632	)		15,233,124			(87,158,769	)
	N/A			N/A			(1,114,968	)		(1,897,695	)		(3,707,511	)		(3,331,999	)
	N/A			N/A			(383,193	)		(480,426	)		(157,638	)		(23,316	)
	N/A			N/A			(39,592	)		(36,491	)		N/A			N/A
	0			(26,010	)		(9,129,695	)		(16,664,911	)		N/A			N/A
	N/A			N/A			N/A			N/A			(631	)		(3,279	)
	N/A			N/A			(10,502,226	)		(4,370,465	)		(12,124,471	)		(43,345,067	)
	N/A			N/A			(7,352,730	)		(3,542,880	)		(2,231,497	)		(8,209,363	)
	N/A			N/A			(625,145	)		(200,501	)		N/A			N/A
	(1,852,831	)		(1,796,368	)		(73,205,481	)		(31,070,255	)		N/A			N/A
	N/A			N/A			N/A			N/A			(8,619	)		(34,228	)
	N/A			N/A			13,634,107			35,489,438			5,669,668			19,054,806
	N/A			N/A			10,839,946			5,835,773			15,645,186			46,154,563
	N/A			N/A			(18,424,314	)		(45,741,628	)		(18,913,962	)		(56,847,327	)
	N/A			N/A			6,049,739			(4,416,417	)		2,400,892			8,362,042
	N/A			N/A			3,991,927			15,541,902			3,899,741			11,195,718
	N/A			N/A			7,413,934			3,860,886			2,283,388			7,879,399
	N/A			N/A			(19,575,477	)		(33,534,210	)		(7,112,807	)		(17,071,110	)
	N/A			N/A			(8,169,616	)		(14,131,422	)		(929,678	)		2,004,007
	N/A			N/A			1,401,073			4,997,304			N/A			N/A
	N/A			N/A			629,062			224,244			N/A			N/A
	N/A			N/A			(944,917	)		(2,892,690	)		N/A			N/A
	N/A			N/A			1,085,218			2,328,858			N/A			N/A
	32,962,239			116,622,485			84,389,151			208,559,415			N/A			N/A
	1,600,367			1,587,478			48,362,336			24,822,740			N/A			N/A
	(23,926,427	)		(41,564,913	)		(172,413,185	)		(226,679,859	)		N/A			N/A
	10,636,179			76,645,050			(39,661,698	)		6,702,296			N/A			N/A
	N/A			N/A			N/A			N/A			127			86,070
	N/A			N/A			N/A			N/A			8,636			37,368
	N/A			N/A			N/A			N/A			(262,534	)		(82,468	)
	N/A			N/A			N/A			N/A			(253,771	)		40,970
	6,170,243			51,645,579			(115,664,907	)		(344,704,941	)		(1,779,800	)		(131,699,002	)
$	199,156,872		$	192,986,629		$	1,010,174,713		$	1,125,839,620		$	320,731,586		$	322,511,386
	N/A			N/A			470,036			962,755			143,650			378,079
	N/A			N/A			376,168			156,113			391,452			853,345
	N/A			N/A			(641,090	)		(1,243,932	)		(480,072	)		(1,156,299	)
	N/A			N/A			205,114			(125,064	)		55,030			75,125
	N/A			N/A			137,465			416,963			97,680			220,005
	N/A			N/A			257,504			102,054			57,525			146,819
	N/A			N/A			(683,591	)		(934,298	)		(180,854	)		(356,026	)
	N/A			N/A			(288,622	)		(415,281	)		(25,649	)		10,798
	N/A			N/A			46,445			129,212			N/A			N/A
	N/A			N/A			21,207			5,808			N/A			N/A
	N/A			N/A			(31,865	)		(80,492	)		N/A			N/A
	N/A			N/A			35,787			54,528			N/A			N/A
	3,755,675			10,773,997			2,950,784			5,608,814			N/A			N/A
	177,424			151,574			1,676,962			656,497			N/A			N/A
	(2,751,529	)		(4,137,803	)		(5,829,827	)		(6,105,551	)		N/A			N/A
	1,181,570			6,787,768			(1,202,081	)		159,760			N/A			N/A
	N/A			N/A			N/A			N/A			3			1,715
	N/A			N/A			N/A			N/A			0			0
	N/A			N/A			N/A			N/A			213			684
	N/A			N/A			N/A			N/A			(6,336	)		(1,720	)
	N/A			N/A			N/A			N/A			(6,120	)		679
$	(157,503	)	$	(93,688	)	$	183,735		$	828,350		$	885,743		$	2,896,845

103

STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS

	EQUITY VALUE
	Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets	$	64,763,241		$	104,836,530
OPERATIONS:
Net investment income (loss)		495,416			453,840
Net realized gain (loss) on sale of investments and foreign currency transactions		(1,708,940	)		(1,950,232	)
Net realized gain (loss) on foreign currency contracts
Net realized gain (loss) on short sales
Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency, futures, options and short sales		3,677,689			(17,748,182	)
Net change in unrealized appreciation (depreciation) of forward foreign currency contracts		0			0
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		2,464,165			(19,244,574	)
Distributions to shareholders:
Net investment income
Class A		(211,868	)		0
Class B		(97,867	)		0
Class C		(3,054	)		0
Institutional Class		(604,062	)		(64,768	)
Class O		N/A			N/A
Net realized gain on sales of investments
Class A		0			(2,134,660	)
Class B		0			(3,728,665	)
Class C		0			(80,624	)
Institutional Class		0			(5,092,315	)
Class O		N/A			N/A
Capital shares transactions:
Proceeds from shares sold – Class A		1,089,478			4,294,176
Reinvestment of dividends – Class A		198,266			2,020,794
Cost of shares redeemed – Class A		(2,034,053	)		(6,426,192	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS A		(746,309	)		(111,222	)
Proceeds from shares sold – Class B		573,026			2,250,108
Reinvestment of dividends – Class B		95,581			3,670,032
Cost of shares redeemed – Class B		(3,464,666	)		(7,701,547	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS B		(2,796,059	)		(1,781,407	)
Proceeds from shares sold – Class C		109,681			312,492
Reinvestment of dividends – Class C		2,766			63,412
Cost of shares redeemed – Class C		(83,346	)		(225,437	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS C		29,101			150,467
Proceeds from shares sold – Institutional Class		2,152,703			9,083,985
Reinvestment of dividends – Institutional Class		384,630			4,495,521
Cost of shares redeemed – Institutional Class		(7,564,698	)		(21,565,027	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS INSTITUTIONAL		(5,027,365	)		(7,985,521	)
Proceeds from shares sold – Class O		N/A			N/A
Reinvestment of dividends – 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
INCREASE IN NET ASSETS		(6,993,318	)		(40,073,289	)
NET ASSETS:
ENDING NET ASSETS	$	57,769,923		$	64,763,241
Shares Issued and Redeemed:
Shares sold – Class A		148,599			429,314
Shares issued in reinvestment of dividends – Class A		27,049			201,475
Shares redeemed – Class A		(282,771	)		(676,748	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS A		(107,123	)		(45,959	)
Shares sold – Class B		91,075			292,900
Shares issued in reinvestment of dividends – Class B		16,237			453,090
Shares redeemed – Class B		(601,816	)		(1,079,865	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS B		(494,504	)		(333,875	)
Shares sold – Class C		18,205			40,250
Shares issued in reinvestment of dividends – Class C		470			7,829
Shares redeemed – Class C		(14,223	)		(33,513	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS C		4,452			14,566
Shares sold – Institutional Class		296,999			996,205
Shares issued in reinvestment of dividends – Institutional Class		52,552			447,405
Shares redeemed – Institutional Class		(1,027,408	)		(2,239,695	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – INSTITUTIONAL CLASS		(677,857	)		(796,085	)
Shares sold – Class O		N/A			N/A
Shares issued in conversion – Class O		N/A			N/A
Shares issued in reinvestment of dividends – Class O		N/A			N/A
Shares redeemed – Class O		N/A			N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS O		N/A			N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME	$	32,286		$	453,720

The accompanying notes are an integral part of these financial statements.

104

STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS

GROWTH						GROWTH EQUITY						INDEX
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
$	208,625,141		$	367,922,232		$	390,546,114		$	507,621,902		$	596,168,161		$	733,380,048
	(514,416	)		(584,738	)		(537,171	)		(1,208,312	)		5,362,771			9,444,368
	(7,070,345	)		(32,462,475	)		(36,736,272	)		(12,548,410	)		(6,045,184	)		(34,566,499	)
	9,654,336			(16,817,718	)		40,856,372			(55,577,627	)		29,367,494			(123,259,770	)
	0			0			0			0			0			0
	2,069,575			(49,864,931	)		3,582,929			(69,334,349	)		28,685,081			(148,381,901	)
	0			0			0			(4,486	)		N/A			N/A
	0			0			0			0			N/A			N/A
	N/A			N/A			0			0			N/A			N/A
	0			0			(156,548	)		(1,519,769	)		(10,498,671	)		(9,607,138	)
	N/A			N/A			N/A			0			N/A			N/A
	0			0			0			(493,172	)		N/A			N/A
	0			0			0			(694,251	)		N/A			N/A
	N/A			N/A			0			(82,233	)		N/A			N/A
	0			0			0			(18,166,612	)		0			0
	N/A			N/A			N/A			N/A			N/A			N/A
	9,960,504			10,049,518			1,859,344			5,294,107			N/A			N/A
	0			0			0			491,472			N/A			N/A
	(15,046,638	)		(34,523,169	)		(2,277,695	)		(4,322,581	)		N/A			N/A
	(5,086,134	)		(24,473,651	)		(418,351	)		1,462,998			N/A			N/A
	346,554			826,232			698,613			2,244,469			0			0
	0			0			0			687,203			N/A			N/A
	(5,636,302	)		(12,124,619	)		(1,634,254	)		(3,241,197	)		N/A			N/A
	(5,289,748	)		(11,298,387	)		(935,641	)		(309,525	)		N/A			N/A
	N/A			N/A			686,780			1,241,280			N/A			N/A
	N/A			N/A			0			82,231			N/A			N/A
	N/A			N/A			(224,559	)		(962,829	)		N/A			N/A
	N/A			N/A			462,221			360,682			N/A			N/A
	2,705,070			4,291,797			15,320,789			47,939,077			110,499,217			215,888,922
	0			0			154,256			19,528,196			8,555,383			7,464,422
	(26,308,461	)		(77,951,919	)		(28,156,307	)		(95,762,344	)		(81,434,739	)		(202,576,192	)
	(23,603,391	)		(73,660,122	)		(12,681,262	)		(28,295,071	)		37,619,861			20,777,152
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	(31,909,698	)		(159,297,091	)		(10,146,652	)		(117,075,788	)		55,806,271			(137,211,887	)
$	176,715,443		$	208,625,141		$	380,399,462		$	390,546,114		$	651,974,432		$	596,168,161
	1,050,289			869,678			91,536			211,621			N/A			N/A
	0			0			0			18,668			N/A			N/A
	(1,592,178	)		(2,999,366	)		(114,933	)		(178,004	)		N/A			N/A
	(541,889	)		(2,129,688	)		(23,397	)		52,285			N/A			N/A
	48,499			99,694			36,072			95,289			N/A			N/A
	0			0			0			27,066			N/A			N/A
	(863,069	)		(1,523,611	)		(86,419	)		(141,507	)		N/A			N/A
	(814,570	)		(1,423,917	)		(50,347	)		(19,152	)		N/A			N/A
	0			0			33,611			50,046			N/A			N/A
	0			0			0			3,124			N/A			N/A
	0			0			(11,538	)		(39,391	)		N/A			N/A
	0			0			22,073			13,779			N/A			N/A
	233,052			311,086			739,356			1,891,197			3,125,960			5,147,686
	0			0			7,318			725,929			238,577			163,765
	(2,311,476	)		(5,590,402	)		(1,370,709	)		(3,895,101	)		(2,315,216	)		(4,697,053	)
	(2,078,424	)		(5,279,316	)		(624,035	)		(1,277,975	)		1,049,321			614,398
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
$	(514,418	)	$	0		$	(1,364,807	)	$	(671,084	)	$	2,918,196		$	8,054,095

105

STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS

	INTERNATIONAL EQUITY
	(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets	$	426,459,648		$	183,348,891
OPERATIONS:
Net investment income (loss)		(81,994	)		261,406
Net realized gain (loss) on sale of investments and foreign currency transactions		(87,996,728	)		(26,629,709	)
Net realized gain (loss) on foreign currency contracts
Net realized gain (loss) on short sales
Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency, futures, options and short sales		56,644,802			(85,117,993	)
Net change in unrealized appreciation (depreciation) of forward foreign currency contracts		(4,973	)		17,712
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		(31,438,893	)		(111,468,582	)
Distributions to shareholders:
Net investment income
Class A		0			0
Class B		0			0
Class C		0			0
Institutional Class		(543,245	)		0
Class O		N/A			N/A
Net realized gain on sales of investments
Class A		0			0
Class B		0			0
Class C		0			0
Institutional Class		0			0
Class O		N/A			N/A
Capital shares transactions:
Proceeds from shares sold – Class A		148,848,405			205,500,445
Reinvestment of dividends – Class A		0			0
Cost of shares redeemed – Class A		(150,462,404	)		(209,924,814	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS A		(1,613,999	)		(4,424,369	)
Proceeds from shares sold – Class B		1,535,593			4,322,793
Reinvestment of dividends – Class B		0			0
Cost of shares redeemed – Class B		(3,620,101	)		(8,813,921	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS B		(2,084,508	)		(4,491,128	)
Proceeds from shares sold – Class C		1,760,564			4,902,467
Reinvestment of dividends – Class C		0			0
Cost of shares redeemed – Class C		(1,672,577	)		(4,852,145	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS C		87,987			50,322
Proceeds from shares sold – Institutional Class		144,588,622			533,017,876
Reinvestment of dividends – Institutional Class		404,002			0
Cost of shares redeemed – Institutional Class		(125,190,791	)		(169,573,362	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS INSTITUTIONAL		19,801,833			363,444,514
Proceeds from shares sold – Class O		N/A			N/A
Reinvestment of dividends – 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
INCREASE IN NET ASSETS		(15,790,825	)		243,110,757
NET ASSETS:
ENDING NET ASSETS	$	410,668,823		$	426,459,648
Shares Issued and Redeemed:
Shares sold – Class A		17,378,728			19,641,624
Shares issued in reinvestment of dividends – Class A		0			0
Shares redeemed – Class A		(17,470,524	)		(19,871,821	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS A		(91,796	)		(230,197	)
Shares sold – Class B		71,499			395,110
Shares issued in reinvestment of dividends – Class B		0			0
Shares redeemed – Class B		(437,196	)		(855,058	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS B		(365,697	)		(459,948	)
Shares sold – Class C		198,873			463,492
Shares issued in reinvestment of dividends – Class C		0			0
Shares redeemed – Class C		(196,382	)		(462,810	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS C		2,491			682
Shares sold – Institutional Class		15,601,586			50,359,359
Shares issued in reinvestment of dividends – Institutional Class		45,702			0
Shares redeemed – Institutional Class		(14,369,696	)		(16,713,796	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – INSTITUTIONAL CLASS		1,277,592			33,645,563
Shares sold – Class O		N/A			N/A
Shares issued in conversion – Class O		N/A			N/A
Shares issued in reinvestment of dividends – Class O		N/A			N/A
Shares redeemed – Class O		N/A			N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS O		N/A			N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME	$	(82,275	)	$	542,963

The accompanying notes are an integral part of these financial statements.

106

STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS

LARGE CAP APPRECIATION						LARGE COMPANY GROWTH						MID CAP GROWTH
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
$	6,293,231		$	167,518		$	1,425,983,217		$	1,604,015,399		$	7,717,755		$	8,998,045
	(2,104	)		(10,718	)		(2,813,557	)		(13,052,769	)		(56,368	)		(161,515	)
	(832,844	)		(1,135,587	)		(22,687,591	)		(293,675,019	)		(6,293	)		(3,690,617	)
	801,043			(702,866	)		98,376,584			(122,839,087	)		797,224			1,732,409
	0			0			0			0			0			0
	(33,905	)		(1,849,171	)		72,875,436			(429,566,875	)		734,563			(2,119,723	)
	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	197,808			1,261,877			62,935,982			69,170,125			475,901			2,843,572
	0			0			0			0			0			0
	(220,942	)		(135,776	)		(35,139,090	)		(83,693,361	)		(670,742	)		(2,119,048	)
	(23,134	)		1,126,101			27,796,892			(14,523,236	)		(194,841	)		724,524
	134,301			1,513,914			7,738,363			40,948,171			322,636			1,476,556
	0			0			0			0			0			0
	(72,962	)		(228,541	)		(25,997,719	)		(61,446,188	)		(496,122	)		(1,303,386	)
	61,339			1,285,373			(18,259,356	)		(20,498,017	)		(173,486	)		173,170
	111,318			246,307			5,008,409			18,772,054			22,267			250,170
	0			0			0			0			0			0
	(7,695	)		(12,824	)		(4,183,155	)		(9,808,261	)		(152,540	)		(308,431	)
	103,623			233,483			825,254			8,963,793			(130,273	)		(58,261	)
	8,792,582			5,441,711			300,708,028			548,924,919			N/A			N/A
	0			0			0			0			N/A			N/A
	(1,331,111	)		(111,784	)		(144,226,869	)		(271,332,766	)		N/A			N/A
	7,461,471			5,329,927			156,481,159			277,592,153			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	7,569,394			6,125,713			239,719,385			(178,032,182	)		235,963			(1,280,290	)
$	13,862,625		$	6,293,231		$	1,665,702,602		$	1,425,983,217		$	7,953,718		$	7,717,755
	25,086			129,822			1,602,494			1,456,934			115,687			553,163
	0			0			0			0			0			0
	(28,554	)		(14,918	)		(959,114	)		(1,894,507	)		(167,515	)		(437,250	)
	(3,468	)		114,904			643,380			(437,573	)		(51,828	)		115,913
	17,433			154,466			219,244			921,505			79,179			291,932
	0			0			0			0			0			0
	(9,725	)		(24,670	)		(762,771	)		(1,502,426	)		(126,463	)		(282,411	)
	7,708			129,796			(543,527	)		(580,921	)		(47,284	)		9,521
	14,252			25,332			143,560			431,104			5,378			48,251
	0			0			0			0			0			0
	(1,038	)		(1,295	)		(121,943	)		(237,809	)		(39,326	)		(61,628	)
	13,214			24,037			21,617			193,295			(33,948	)		(13,377	)
	1,120,376			562,749			8,413,298			12,758,069			N/A			N/A
	0			0			0			0			N/A			N/A
	(171,776	)		(13,166	)		(4,047,861	)		(6,310,279	)		N/A			N/A
	948,600			549,583			4,365,437			6,447,790			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
$	(6,471	)	$	(4,368	)	$	(6,960,535	)	$	(4,146,982	)	$	(56,368	)	$	—

107

STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS

	SIFE SPECIALIZED FINANCIAL SERVICES
	(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets	$	532,392,626		$	706,549,974
OPERATIONS:
Net investment income (loss)		2,380,838			4,628,168
Net realized gain (loss) on sale of investments and foreign currency transactions		54,808,900			118,691,349
Net realized gain (loss) on foreign currency contracts
Net realized gain (loss) on short sales
Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency, futures, options and short sales		(80,664,416	)		(208,332,523	)
Net change in unrealized appreciation (depreciation) of forward foreign currency contracts		0			0
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		(23,474,678	)		(85,013,006	)
Distributions to shareholders:
Net investment income
Class A		(4,474,252	)		(4,021,093	)
Class B		(115,348	)		(7	)
Class C		(9,900	)		(4	)
Institutional Class		N/A			N/A
Class O		N/A			N/A
Net realized gain on sales of investments
Class A		0			(107,746,039	)
Class B		0			(4,401,569	)
Class C		0			(378,917	)
Institutional Class		N/A			N/A
Class O		N/A			N/A
Capital shares transactions:
Proceeds from shares sold – Class A		8,068,934			11,973,012
Reinvestment of dividends – Class A		4,023,245			99,242,243
Cost of shares redeemed – Class A		(46,951,955	)		(88,457,502	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS A		(34,859,776	)		22,757,753	(1)
Proceeds from shares sold – Class B		748,179			3,146,624
Reinvestment of dividends – Class B		107,615			4,046,194
Cost of shares redeemed – Class B		(1,766,633	)		(2,968,146	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS B		(910,839	)		4,224,672	(1)
Proceeds from shares sold – Class C		140,011			483,254
Reinvestment of dividends – Class C		8,391			338,520
Cost of shares redeemed – Class C		(273,255	)		(400,912	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS C		(124,853	)		420,862	(1)
Proceeds from shares sold – Class Institutional		N/A			N/A
Reinvestment of dividends – Class Institutional		N/A			N/A
Cost of shares redeemed – Class Institutional		N/A			N/A
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS INSTITUTIONAL		N/A			N/A
Proceeds from shares sold – Class O		N/A			N/A
Reinvestment of dividends – 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
INCREASE IN NET ASSETS		(63,969,646	)		(174,157,348	)
NET ASSETS:
ENDING NET ASSETS	$	468,422,980		$	532,392,626
Shares issued and redeemed:
Shares sold – Class A		2,258,875			2,398,313
Shares issued in reinvestment of dividends – Class A		1,094,884			25,910,479
Shares redeemed – Class A		(13,012,234	)		(17,201,238	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS A		(9,658,475	)		11,107,554	(1)
Shares sold – Class B		201,777			582,167
Shares issued in reinvestment of dividends – Class B		29,316			1,067,597
Shares redeemed – Class B		(492,145	)		(582,699	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS B		(261,052	)		1,067,065	(1)
Shares sold – Class C		37,716			89,291
Shares issued in reinvestment of dividends – Class C		2,294			89,556
Shares redeemed – Class C		(74,546	)		(79,406	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS C		(34,536	)		99,441	(1)
Shares sold – Institutional Class		N/A			N/A
Shares issued in reinvestment of dividends – 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
Shares sold – Class O		N/A			N/A
Shares issued in conversion – Class O		N/A			N/A
Shares issued in reinvestment of dividends – Class O		N/A			N/A
Shares redeemed – Class O		N/A			N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS O		N/A			N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME	$	(743,799	)	$	1,474,863

(1) “Proceeds from shares sold” and “Shares sold” include amounts related to Fund mergers and shares class conversions. See note 1.

The accompanying notes are an integral part of these financial statements.

108

STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS

SMALL CAP GROWTH						SMALL CAP OPPORTUNITIES						SMALL COMPANY GROWTH
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
$	178,323,663		$	253,515,822		$	294,880,174		$	293,149,490		$	329,964,033		$	431,694,603
	(955,952	)		(3,119,763	)		(910,735	)		(2,872,771	)		(1,317,900	)		(3,013,662	)
	(23,198,743	)		(99,202,737	)		(21,743,338	)		19,905,340			(22,077,142	)		(78,242,475	)
	27,096,393			36,747,159			25,669,375			(59,040,632	)		34,081,601			(799,483	)
	0			0			0			0			0			0
	2,941,698			(65,575,341	)		3,015,302			(42,008,063	)		10,686,559			(82,055,620	)
	0			0			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	0			0			0			0			0			0
	N/A			N/A			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	0			0			(17,033,555	)		(17,241,709	)		0			0
	N/A			N/A			N/A			N/A			N/A			N/A
	13,515,507			81,037,512			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	(24,016,397	)		(80,332,951	)		N/A			N/A			N/A			N/A
	(10,500,890	)		704,561			N/A			N/A			N/A			N/A
	815,724			6,139,145			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	(5,338,941	)		(11,702,153	)		N/A			N/A			N/A			N/A
	(4,523,217	)		(5,563,008	)		N/A			N/A			N/A			N/A
	953,691			3,636,155			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	(1,134,460	)		(3,710,911	)		N/A			N/A			N/A			N/A
	(180,769	)		(74,756	)		N/A			N/A			N/A			N/A
	7,359,118			90,928,426			21,852,708			128,037,697			14,589,340			94,776,737
	0			0			15,543,519			15,064,919			0			0
	(28,861,845	)		(95,612,041	)		(35,192,223	)		(82,122,160	)		(45,899,806	)		(114,451,687	)
	(21,502,727	)		(4,683,615	)		2,204,004			60,980,456			(31,310,466	)		(19,674,950	)
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	(33,765,905	)		(75,192,159	)		(11,814,249	)		1,730,684			(20,623,907	)		(101,730,570	)
$	144,557,758		$	178,323,663		$	283,065,925		$	294,880,174		$	309,340,126		$	329,964,033
	1,301,383			5,538,112			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	(2,375,554	)		(5,483,870	)		N/A			N/A			N/A			N/A
	(1,074,171	)		54,242			N/A			N/A			N/A			N/A
	82,683			426,934			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	(552,429	)		(894,196	)		N/A			N/A			N/A			N/A
	(469,746	)		(467,262	)		N/A			N/A			N/A			N/A
	97,501			259,648			N/A			N/A			N/A			N/A
	0			0			N/A			N/A			N/A			N/A
	(117,114	)		(278,960	)		N/A			N/A			N/A			N/A
	(19,613	)		(19,312	)		N/A			N/A			N/A			N/A
	711,580			5,711,892			952,974			4,064,406			801,108			3,963,144
	0			0			677,573			521,097			0			0
	(2,764,366	)		(6,104,723	)		(1,563,406	)		(3,056,437	)		(2,510,068	)		(4,811,198	)
	(2,052,786	)		(392,831	)		67,141			1,529,066			(1,708,960	)		(848,054	)
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A			N/A			N/A
$	(955,952	)	$	—		$	(910,735	)	$	—		$	(1,824,705	)	$	(506,802	)

109

STOCK FUNDS STATEMENTS OF CHANGES IN NET ASSETS

	SMALL COMPANY VALUE
	(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets	$	14,660,609		$	0
OPERATIONS:
Net investment income (loss)		49,310			(11,792	)
Net realized gain (loss) on sale of investments and foreign currency transactions		(408,033	)		(979,603	)
Net realized gain (loss) on foreign currency contracts
Net realized gain (loss) on short sales
Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency, futures, options and short sales		(339,873	)		(2,857,618	)
Net change in unrealized appreciation (depreciation) of forward foreign currency contracts		0			0
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		(698,596	)		(3,849,013	)
Distributions to shareholders:
Net investment income
Class A		0			0
Class B		0			0
Class C		0			0
Institutional Class		0			0
Class O		N/A			N/A
Net realized gain on sales of investments
Class A		(2,715	)		0
Class B		(2,807	)		0
Class C		(95	)		0
Institutional Class		(6,171	)		0
Class O		N/A			N/A
Capital shares transactions:
Proceeds from shares sold – Class A		2,515,861			7,179,793
Reinvestment of dividends – Class A		2,605			0
Cost of shares redeemed – Class A		(1,602,053	)		(1,545,940	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS A		916,413			5,633,853
Proceeds from shares sold – Class B		903,112			7,366,670
Reinvestment of dividends – Class B		2,750			0
Cost of shares redeemed – Class B		(1,002,714	)		(929,813	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS B		(96,852	)		6,436,857
Proceeds from shares sold – Class C		514,871			61,285
Reinvestment of dividends – Class C		94			0
Cost of shares redeemed – Class C		(31,267	)		0
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS C		483,698			61,285
Proceeds from shares sold – Class Institutional		14,932,737			6,734,531
Reinvestment of dividends – Class Institutional		5,734			0
Cost of shares redeemed – Class Institutional		(1,217,023	)		(356,904	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS – CLASS INSTITUTIONAL		13,721,448			6,377,627
Proceeds from shares sold – Class O		N/A			N/A
Reinvestment of dividends – 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
INCREASE IN NET ASSETS		14,314,323			14,660,609
NET ASSETS:
ENDING NET ASSETS	$	28,974,932		$	14,660,609
Shares issued and redeemed:
Shares sold – Class A		288,522			653,444
Shares issued in reinvestment of dividends – Class A		283			0
Shares redeemed – Class A		(183,828	)		(146,216	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS A		104,977			507,228
Shares sold – Class B		102,789			676,545
Shares issued in reinvestment of dividends – Class B		301			0
Shares redeemed – Class B		(117,611	)		(96,823	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS B		(14,521	)		579,722
Shares sold – Class C		57,659			7,084
Shares issued in reinvestment of dividends – Class C		10			0
Shares redeemed – Class C		(3,811	)		0
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS C		53,858			7,084
Shares sold – Institutional Class		1,660,760			682,095
Shares issued in reinvestment of dividends – Institutional Class		623			0
Shares redeemed – Institutional Class		(138,421	)		(34,317	)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – INSTITUTIONAL CLASS		1,522,962			647,778
Shares sold – Class O		N/A			N/A
Shares issued in conversion – Class O		N/A			N/A
Shares issued in reinvestment of dividends – Class O		N/A			N/A
Shares redeemed – Class O		N/A			N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING – CLASS O		N/A			N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME	$	46,720		$	(2,591	)

The accompanying notes are an integral part of these financial statements.

110

STATEMENTS OF CHANGES IN NET ASSETS STOCK FUNDS

SPECIALIZED HEALTH SCIENCES						SPECIALIZED TECHNOLOGY
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30, 2002
$	29,843,974		$	30,927,620		$	38,803,179		$	64,484,439
	(217,322	)		(545,419	)		(357,437	)		(1,260,507	)
	(2,102,242	)		(6,616,046	)		(3,817,066	)		(13,312,455	)
				(243,650	)					281,040
				30,766						69,567
	3,635,983			(1,076,602	)		7,800,792			177,249
	0			267			0
	1,316,419			(8,450,684	)		3,626,289			(14,045,106	)
	0			0			0			0
	0			0			0			0
	0			0			0			0
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	0			0			0			0
	0			0			0			0
	0			0			0			0
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	520,901			6,802,662			2,389,476			4,388,216
	0			0			0
	(2,409,867	)		(3,458,295	)		(3,319,965	)		(9,003,084	)
	(1,888,966	)		3,344,367			(930,489	)		(4,614,958	)
	538,130			7,155,251			579,174			3,225,136
	0			0			0
	(2,076,654	)		(3,490,347	)		(2,748,997	)		(8,834,007	)
	(1,538,524	)		3,664,904			(2,169,823	)		(5,608,871	)
	73,686			1,137,193			560,865			964,466
	0			0			0
	(303,586	)		(779,426	)		(681,170	)		(2,376,791	)
	(229,900	)		357,767			(120,305	)		(1,412,325	)
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	(2,340,971	)		(1,083,646	)		405,672			(25,681,260	)
$	27,503,003		$	29,843,974		$	39,208,851			38,803,179
	64,765			686,830			915,426			1,199,132
	0			0			0			0
	(300,916	)		(394,287	)		(1,315,262	)		(2,696,136	)
	(236,151	)		292,543			(399,836	)		(1,497,004	)
	68,383			727,189			213,848			895,285
	0			0			0			0
	(265,658	)		(400,075	)		(1,113,162	)		(2,756,594	)
	(197,275	)		327,114			(899,314	)		(1,861,309	)
	9,126			116,862			211,912			272,619
	0			0			0			0
	(38,973	)		(87,122	)		(272,785	)		(754,669	)
	(29,847	)		29,740			(60,873	)		(482,050	)
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
	N/A			N/A			N/A			N/A
$	(217,322	)	$	—			(357,437	)		—

111

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income		Distributions From Net Realized Gains
DIVERSIFIED EQUITY
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	29.00	0.06	(8)	0.54		(0.11	)	0.00
October 1, 2001 to September 30, 2002	$	36.33	0.09		(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	)
June 1, 1997 to May 31, 1998	$	36.51	0.16		8.99		(0.27	)	(2.33	)
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	28.15	(0.05	)(8)	0.52		0.00		0.00
October 1, 2001 to September 30, 2002	$	35.41	(0.20	)	(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	)
June 1, 1997 to May 31, 1998	$	36.31	(0.06	)	8.85		(0.08	)	(2.33	)
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	28.56	(0.05	)(8)	0.50		0.00		0.00
October 1, 2001 to September 30, 2002	$	35.91	(0.20	)	(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, 2002 to March 31, 2003 (Unaudited)	$	29.04	0.10	(8)	0.54		(0.21	)	0.00
October 1, 2001 to September 30, 2002	$	36.38	0.18		(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	)
June 1, 1997 to May 31, 1998	$	36.50	0.22		8.94		(0.27	)	(2.33	)
DIVERSIFIED SMALL CAP
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	8.70	(0.00	)	(0.08	)	0.00		(0.08	)
October 1, 2001 to September 30, 2002	$	9.18	(0.02	)(7)	(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	(7)	0.00
December 31, 1997(3) to May 31, 1998	$	10.00	0.00		0.52		0.00		0.00
EQUITY INCOME
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	28.74	0.24		0.38		(0.25	)	(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	)
June 1, 1997 to May 31, 1998	$	33.16	0.52		8.77		(0.54	)	(0.72	)
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	28.72	0.14		0.38		(0.13	)	(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	)
June 1, 1997 to May 31, 1998	$	33.09	0.24		8.75		(0.24	)	(0.72	)

112

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	29.49	0.42	%	1.25	%(4)	1.50	%(4)	2.03	%	18	%(6)	$	57,016
0.00	$	29.00	0.22	%	1.25	%(4)	1.58	%(4)	(19.04	)%	30	%(6)	$	57,876
0.00	$	36.33	0.23	%	1.15	%(4)	1.61	%(4)	(24.07	)%	34	%(6)	$	74,038
0.00	$	52.73	0.31	%	1.00	%(4)	1.51	%(4)	15.99	%	38	%(6)	$	95,646
0.00	$	48.01	0.45	%	1.00	%(4)	1.20	%(4)	(0.50	)%	13	%(6)	$	70,624
0.00	$	48.25	0.47	%	1.00	%(4)	1.22	%(4)	15.08	%	35	%(6)	$	69,768
0.00	$	43.06	0.60	%	1.00	%(4)	1.20	%(4)	26.08	%	23	%(6)	$	56,350
0.00	$	28.62	(0.33	)%	2.00	%(4)	2.28	%(4)	1.67	%	18	%(6)	$	82,059
0.00	$	28.15	(0.53	)%	2.00	%(4)	2.39	%(4)	(19.64	)%	30	%(6)	$	85,035
0.00	$	35.41	(0.52	)%	1.90	%(4)	2.41	%(4)	(24.65	)%	34	%(6)	$	111,956
0.00	$	51.70	(0.44	)%	1.75	%(4)	2.28	%(4)	15.10	%	38	%(6)	$	143,472
0.00	$	47.33	(0.30	)%	1.75	%(4)	2.20	%(4)	(0.75	)%	13	%(6)	$	113,874
0.00	$	47.69	(0.28	)%	1.75	%(4)	2.22	%(4)	14.24	%	35	%(6)	$	111,106
0.00	$	42.69	(0.15	)%	1.75	%(4)	2.19	%(4)	25.13	%	23	%(6)	$	81,548
0.00	$	29.01	(0.32	)%	2.00	%(4)	2.26	%(4)	1.58	%	18	%(6)	$	7,000
0.00	$	28.56	(0.52	)%	2.00	%(4)	2.13	%(4)	(19.62	)%	30	%(6)	$	6,730
0.00	$	35.91	(0.52	)%	1.90	%(4)	2.01	%(4)	(24.64	)%	34	%(6)	$	7,693
0.00	$	52.36	(0.40	)%	1.75	%(4)	2.95	%(4)	15.11	%	38	%(6)	$	8,526
0.00	$	47.90	(0.28	)%	1.75	%(4)	2.63	%(4)	(0.75	)%	13	%(6)	$	2,018
0.00	$	48.26	(0.28	)%	1.75	%(4)	5.15	%(4)	28.02	%	35	%(6)	$	542
0.00	$	29.47	0.67	%	1.00	%(4)	1.13	%(4)	2.16	%	18	%(6)	$	976,535
0.00	$	29.04	0.47	%	1.00	%(4)	1.14	%(4)	(18.86	)%	30	%(6)	$	1,014,998
0.00	$	36.38	0.38	%	1.00	%(4)	1.07	%(4)	(23.95	)%	34	%(6)	$	1,398,810
0.00	$	52.72	0.31	%	1.00	%(4)	1.10	%(4)	15.99	%	38	%(6)	$	1,938,206
0.00	$	48.00	0.44	%	1.00	%(4)	1.18	%(4)	(0.52	)%	13	%(6)	$	1,902,474
0.00	$	48.25	0.47	%	1.00	%(4)	1.17	%(4)	15.08	%	35	%(6)	$	1,629,191
0.00	$	43.06	0.60	%	1.00	%(4)	1.13	%(4)	26.12	%	23	%(6)	$	1,520,343
0.00	$	8.54	(0.06	)%	1.20	%(4)	1.30	%(4)	(1.05	)%	31	%(6)	$	199,157
0.00	$	8.70	(0.24	)%	1.20	%(4)	1.38	%(4)	(4.17	)%	93	%(6)	$	192,987
0.00	$	9.18	0.13	%	1.20	%(4)	1.28	%(4)	(12.52	)%	113	%(6)	$	138,795
0.00	$	11.18	0.05	%	1.20	%(4)	1.39	%(4)	23.95	%	121	%(6)	$	115,700
0.00	$	9.02	(0.18	)%	1.20	%(4)	1.59	%(4)	0.33	%	39	%(6)	$	67,459
0.00	$	8.99	(0.05	)%	1.20	%(4)	1.65	%(4)	(14.54	)%	112	%(6)	$	60,261
0.00	$	10.52	0.25	%	1.21	%(4)	2.65	%(4)	5.20	%	93	%(6)	$	12,551
0.00	$	26.65	1.67	%	1.10	%(4)	1.32	%(4)	1.51	%	8	%(5)	$	120,455
0.00	$	28.74	1.19	%	1.10	%(4)	1.36	%(4)	(19.84	)%	12	%(5)	$	124,015
0.00	$	37.23	0.86	%	1.10	%(4)	1.51	%(4)	(8.97	)%	3	%(5)	$	165,304
0.00	$	41.28	1.07	%	1.10	%(4)	1.28	%(4)	1.17	%	9	%(5)	$	196,314
0.00	$	44.20	1.12	%	0.85	%(4)	0.90	%(4)	(4.16	)%	5	%(5)	$	109,081
0.00	$	46.36	1.23	%	0.85	%(4)	0.93	%(4)	14.74	%	3	%(5)	$	105,162
0.00	$	41.19	1.44	%	0.85	%(4)	0.91	%(4)	28.64	%	3	%(5)	$	75,144
0.00	$	26.64	0.91	%	1.85	%(4)	2.13	%(4)	1.13	%	8	%(5)	$	77,540
0.00	$	28.72	0.43	%	1.85	%(4)	2.18	%(4)	(20.43	)%	12	%(5)	$	91,889
0.00	$	37.18	0.12	%	1.85	%(4)	2.20	%(4)	(9.67	)%	3	%(5)	$	134,403
0.00	$	41.22	0.28	%	1.85	%(4)	2.03	%(4)	0.41	%	9	%(5)	$	152,682
0.00	$	44.17	0.37	%	1.60	%(4)	1.90	%(4)	(4.40	)%	5	%(5)	$	118,792
0.00	$	46.27	0.48	%	1.60	%(4)	1.94	%(4)	13.90	%	3	%(5)	$	106,688
0.00	$	41.12	0.69	%	1.60	%(4)	1.91	%(4)	27.67	%	3	%(5)	$	67,385

113

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income		Distributions From Net Realized Gains
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	29.52	0.13		0.39		(0.14	)	(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	)
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	28.72	0.28		0.38		(0.30	)	(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	)
June 1, 1997 to May 31, 1998	$	33.16	0.52		8.76		(0.54	)	(0.72	)
EQUITY INDEX
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	38.09	0.24		1.62		(0.52	)	(1.70	)
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	)
April 1, 1998 to September 30, 1998	$	70.32	0.33		(5.39	)	(0.33	)	0.00
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	37.80	0.10		1.58		(0.12	)	(1.67	)
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	)
April 1, 1998 to September 30, 1998	$	70.41	0.04		(5.38	)	(0.04	)	0.00
EQUITY VALUE
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	6.76	0.06	(8)	0.16		(0.12	)	0.00
October 1, 2001 to September 30, 2002	$	9.79	0.07		(2.02	)	0.00		(1.08	)
October 1, 2000 to September 30, 2001	$	13.52	0.03		(1.93	)	0.00		(1.83	)
October 1, 1999 to September 30, 2000	$	14.25	0.05		1.52		(0.03	)	(2.27	)
October 1, 1998 to September 30, 1999	$	14.93	0.14		0.58		(0.14	)	(1.26	)
April 1, 1998 to September 30, 1998	$	18.15	0.09		(3.22	)	(0.09	)	0.00
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	5.42	0.03	(8)	0.14		(0.03	)	0.00
October 1, 2001 to September 30, 2002	$	7.92	(0.01	)	(1.62	)	0.00		(0.87	)
October 1, 2000 to September 30, 2001	$	11.02	(0.05	)	(1.56	)	0.00		(1.49	)
October 1, 1999 to September 30, 2000	$	11.68	(0.03	)	1.23		0.00		(1.86	)
October 1, 1998 to September 30, 1999	$	12.23	0.02		0.48		(0.02	)	(1.03	)
April 1, 1998 to September 30, 1998	$	14.86	0.02		(2.63	)	(0.02	)	0.00
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	5.42	0.03	(8)	0.13		(0.03	)	0.00
October 1, 2001 to September 30, 2002	$	7.92	(0.01	)	(1.62	)	0.00		(0.87	)
October 1, 2000 to September 30, 2001	$	11.01	(0.02	)	(1.58	)	0.00		(1.49	)
October 1, 1999 to September 30, 2000	$	11.68	(0.04	)	1.23		0.00		(1.86	)
October 1, 1998 to September 30, 1999	$	12.23	0.02		0.48		(0.02	)	(1.04	)
April 1, 1998(3) to September 30, 1998	$	14.86	0.02		(2.63	)	(0.02	)	0.00
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	6.77	0.07	(8)	0.17		(0.16	)	0.00
October 1, 2001 to September 30, 2002	$	9.80	0.08		(2.02	)	(0.01	)	(1.08	)
October 1, 2000 to September 30, 2001	$	13.51	0.04		(1.92	)	0.00		(1.83	)
October 1, 1999 to September 30, 2000	$	14.25	0.07		1.50		(0.04	)	(2.27	)
October 1, 1998 to September 30, 1999	$	14.92	0.15		0.59		(0.15	)	(1.26	)
April 1, 1998 to September 30, 1998	$	18.15	0.10		(3.23	)	(0.10	)	0.00

114

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	27.44	0.93	%	1.85	%(4)	2.07	%(4)	1.15	%	8	%(5)	$	7,875
0.00	$	29.52	0.46	%	1.85	%(4)	2.12	%(4)	(20.41	)%	12	%(5)	$	7,415
0.00	$	38.18	0.14	%	1.85	%(4)	2.02	%(4)	(9.66	)%	3	%(5)	$	7,508
0.00	$	42.32	0.29	%	1.85	%(4)	1.96	%(4)	0.41	%	9	%(5)	$	7,115
0.00	$	45.30	0.42	%	1.60	%(4)	2.37	%(4)	(4.41	)%	5	%(5)	$	2,124
0.00	$	47.49	0.48	%	1.60	%(4)	4.37	%(4)	28.55	%	3	%(5)	$	1,106
0.00	$	26.62	1.91	%	0.85	%(4)	0.92	%(4)	1.65	%	8	%(5)	$	804,304
0.00	$	28.72	1.44	%	0.85	%(4)	0.91	%(4)	(19.64	)%	12	%(5)	$	902,521
0.00	$	37.21	1.11	%	0.85	%(4)	0.85	%(4)	(8.75	)%	3	%(5)	$	1,163,331
0.00	$	41.27	1.21	%	0.85	%(4)	0.87	%(4)	1.39	%	9	%(5)	$	1,403,624
0.00	$	44.19	1.11	%	0.85	%(4)	0.88	%(4)	(4.16	)%	5	%(5)	$	1,471,410
0.00	$	46.35	1.23	%	0.85	%(4)	0.89	%(4)	14.75	%	3	%(5)	$	1,519,541
0.00	$	41.18	1.43	%	0.85	%(4)	0.86	%(4)	28.61	%	3	%(5)	$	1,214,385
0.00	$	37.74	1.22	%	0.67	%	1.00	%	4.70	%	3	%	$	271,217
0.00	$	38.09	0.86	%	0.67	%	0.99	%	(20.99	)%	4	%	$	271,640
0.00	$	54.20	0.67	%	0.67	%	0.88	%	(27.03	)%	4	%	$	382,462
0.00	$	84.54	0.54	%	0.71	%	0.85	%	12.43	%	8	%	$	596,083
0.00	$	78.14	0.68	%	0.71	%	0.80	%	26.82	%	6	%	$	611,111
0.00	$	64.93	0.94	%	0.71	%	0.77	%	(7.22	)%	6	%	$	518,778
0.00	$	37.69	0.48	%	1.41	%	1.89	%	4.33	%	3	%	$	49,514
0.00	$	37.80	0.11	%	1.41	%	1.97	%	(21.60	)%	4	%	$	50,635
0.00	$	53.78	(0.07	)%	1.41	%	1.63	%	(27.57	)%	4	%	$	71,450
0.00	$	84.06	(0.21	)%	1.46	%	1.72	%	11.58	%	8	%	$	96,378
0.00	$	78.19	(0.06	)%	1.45	%	1.61	%	25.86	%	6	%	$	66,931
0.00	$	65.03	0.14	%	1.45	%	1.58	%	(7.59	)%	6	%	$	17,499
0.00	$	6.86	1.69	%	1.10	%	1.89	%	3.15	%	16	%	$	11,870
0.00	$	6.76	0.66	%	1.16	%	1.89	%	(23.51	)%	153	%	$	12,410
0.00	$	9.79	0.23	%	1.18	%	1.70	%	(16.07	)%	103	%	$	18,430
0.00	$	13.52	0.32	%	1.18	%	1.54	%	12.12	%	117	%	$	24,605
0.00	$	14.25	0.85	%	1.17	%	1.26	%	4.34	%	72	%	$	31,764
0.00	$	14.93	1.06	%	1.09	%	1.09	%	(17.27	)%	23	%	$	43,679
0.00	$	5.56	0.94	%	1.85	%	2.70	%	3.04	%	16	%	$	19,753
0.00	$	5.42	(0.08	%)	1.91	%	2.74	%	(24.19	)%	153	%	$	21,963
0.00	$	7.92	(0.52	)%	1.93	%	2.42	%	(16.70	)%	103	%	$	34,704
0.00	$	11.02	(0.42	)%	1.93	%	2.34	%	11.28	%	117	%	$	45,636
0.00	$	11.68	0.18	%	1.83	%	2.02	%	3.68	%	72	%	$	58,490
0.00	$	12.23	0.36	%	1.81	%	1.81	%	(17.54	)%	23	%	$	73,343
0.00	$	5.55	0.93	%	1.85	%	2.49	%	2.93	%	16	%	$	596
0.00	$	5.42	(0.06	%)	1.91	%	2.73	%	(24.19	)%	153	%	$	558
0.00	$	7.92	(0.51	)%	1.93	%	2.70	%	(16.62	)%	103	%	$	700
0.00	$	11.01	(0.40	)%	1.93	%	2.22	%	11.18	%	117	%	$	560
0.00	$	11.67	0.18	%	1.83	%	2.32	%	3.69	%	72	%	$	873
0.00	$	12.23	0.41	%	1.83	%	2.84	%	(17.57	)%	23	%	$	1,239
0.00	$	6.85	1.94	%	0.85	%	1.27	%	3.34	%	16	%	$	25,551
0.00	$	6.77	0.88	%	0.96	%	1.18	%	(23.37	)%	153	%	$	29,832
0.00	$	9.80	0.42	%	1.00	%	1.02	%	(15.92	)%	103	%	$	51,002
0.00	$	13.51	0.51	%	1.00	%	1.05	%	12.18	%	117	%	$	69,880
0.00	$	14.25	0.96	%	1.06	%	1.08	%	4.51	%	72	%	$	123,197
0.00	$	14.92	1.17	%	0.97	%	0.97	%	(17.26	)%	23	%	$	166,616

115

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income		Distributions From Net Realized Gains
GROWTH
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	9.39	(0.02	)(8)	0.10		0.00		0.00
October 1, 2001 to September 30, 2002	$	11.66	(0.02	)	(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	)
April 1, 1998 to September 30, 1998	$	22.09	0.05		(1.61	)	(0.05	)	0.00
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	6.47	(0.04	)(8)	0.07		0.00		0.00
October 1, 2001 to September 30, 2002	$	8.10	(0.07	)	(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	)
April 1, 1998 to September 30, 1998	$	15.70	(0.02	)	(1.15	)	0.00		0.00
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	11.05	(0.02	)(8)	0.12		0.00		0.00
October 1, 2001 to September 30, 2002	$	13.71	0.00		(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	)
April 1, 1998 to September 30, 1998	$	25.91	0.07		(1.90	)	(0.07	)	0.00
GROWTH EQUITY
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	19.50	(0.04	)	0.19		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	)
June 1, 1997 to May 31, 1998	$	32.49	(0.06	)	6.88		(0.04	)	(3.54	)
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	18.37	(0.04	)	0.10		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	)
June 1, 1997 to May 31, 1998	$	32.28	(0.23	)	6.72		0.00		(3.54	)
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	19.04	(0.21	)	0.29		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	)
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	19.61	(0.02	)	0.19		(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		(0.03	)	(2.07	)
June 1, 1997 to May 31, 1998	$	32.48	(0.04	)	6.86		(0.04	)	(3.54	)

116

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	9.47	(0.50	)%	1.14	%	1.65	%	0.85	%	30	%	$	116,642
0.00	$	9.39	(0.17	)%	1.12	%	1.70	%	(19.47	)%	88	%	$	120,777
0.00	$	11.66	(0.12	)%	1.12	%	1.53	%	(36.26	)%	80	%	$	174,828
0.00	$	22.82	(0.22	)%	1.12	%	1.42	%	14.40	%	51	%	$	311,038
0.00	$	22.85	0.05	%	1.10	%	1.13	%	29.54	%	38	%	$	315,134
0.00	$	20.48	0.42	%	1.08	%	1.08	%	(7.08	)%	18	%	$	305,309
0.00	$	6.50	(1.24	)%	1.88	%	2.67	%	0.46	%	30	%	$	14,720
0.00	$	6.47	(0.91	)%	1.87	%	2.69	%	(20.12	)%	88	%	$	19,918
0.00	$	8.10	(0.87	)%	1.87	%	2.23	%	(36.69	)%	80	%	$	36,453
0.00	$	15.96	(0.96	)%	1.87	%	2.22	%	13.48	%	51	%	$	69,433
0.00	$	16.11	(0.64	)%	1.79	%	1.86	%	28.68	%	38	%	$	60,909
0.00	$	14.53	(0.29	)%	1.79	%	1.79	%	(7.45	)%	18	%	$	48,772
0.00	$	11.15	(0.36	)%	1.00	%	1.08	%	0.90	%	30	%	$	45,353
0.00	$	11.05	(0.02	)%	1.00	%	1.00	%	(19.40	)%	88	%	$	67,930
0.00	$	13.71	0.06	%	1.00	%	1.03	%	(36.19	)%	80	%	$	156,641
0.00	$	26.80	(0.05	)%	1.00	%	1.02	%	14.55	%	51	%	$	52,561
0.00	$	26.80	0.15	%	1.00	%	1.02	%	29.69	%	38	%	$	17,588
0.00	$	24.01	0.48	%	1.02	%	1.04	%	(7.10	)%	18	%	$	14,355
0.00	$	19.65	(0.47	)%	1.50	%(4)	1.77	%(4)	0.77	%	29	%(6)	$	10,837
0.00	$	19.50	(0.43	)%	1.47	%(4)	1.88	%(4)	(15.46	)%	40	%(6)	$	11,210
0.00	$	23.87	(0.31	)%	1.50	%(4)	1.93	%(4)	(28.93	)%	75	%(6)	$	12,473
0.00	$	39.89	(0.48	)%	1.50	%(4)	1.72	%(4)	25.01	%	78	%(6)	$	17,726
0.00	$	36.83	(0.01	)%	1.25	%(4)	1.45	%(4)	1.82	%	22	%(6)	$	23,750
0.00	$	36.17	(0.08	)%	1.25	%(4)	1.44	%(4)	7.57	%	73	%(6)	$	17,335
0.00	$	35.73	(0.11	)%	1.25	%(4)	1.42	%(4)	22.55	%	47	%(6)	$	21,567
0.00	$	18.43	(1.22	)%	2.25	%(4)	2.53	%(4)	0.33	%	29	%(6)	$	12,787
0.00	$	18.37	(1.18	)%	2.22	%(4)	2.63	%(4)	(16.09	)%	40	%(6)	$	13,670
0.00	$	22.69	(1.06	)%	2.25	%(4)	2.65	%(4)	(29.46	)%	75	%(6)	$	17,319
0.00	$	38.48	(1.20	)%	2.25	%(4)	2.58	%(4)	24.11	%	78	%(6)	$	25,124
0.00	$	35.93	(0.76	)%	2.00	%(4)	2.45	%(4)	1.53	%	22	%(6)	$	19,211
0.00	$	35.39	(0.83	)%	2.00	%(4)	2.45	%(4)	6.78	%	73	%(6)	$	18,976
0.00	$	35.23	(0.85	)%	2.00	%(4)	2.45	%(4)	21.63	%	47	%(6)	$	16,615
0.00	$	19.11	(1.20	)%	2.25	%(4)	2.73	%(4)	0.37	%	29	%(6)	$	2,149
0.00	$	19.04	(1.17	)%	2.22	%(4)	2.74	%(4)	(16.10	)%	40	%(6)	$	1,721
0.00	$	23.49	(1.06	)%	2.25	%(4)	2.32	%(4)	(29.46	)%	75	%(6)	$	1,799
0.00	$	39.61	(1.16	)%	2.25	%(4)	2.75	%(4)	24.11	%	78	%(6)	$	2,240
0.00	$	36.84	(0.87	)%	2.00	%(4)	6.22	%(4)	1.52	%	22	%(6)	$	320
0.00	$	36.29	(0.87	)%	2.01	%(4)	21.40	%(4)	25.73	%	73	%(6)	$	60
0.00	$	19.77	(0.22	)%	1.25	%(4)	1.39	%(4)	0.86	%	29	%(6)	$	354,626
0.00	$	19.61	(0.19	)%	1.22	%(4)	1.41	%(4)	(15.25	)%	40	%(6)	$	363,946
0.00	$	24.00	(0.06	)%	1.25	%(4)	1.29	%(4)	(28.74	)%	75	%(6)	$	476,031
0.00	$	39.98	(0.23	)%	1.25	%(4)	1.34	%(4)	25.32	%	78	%(6)	$	751,174
0.00	$	36.82	0.05	%	1.25	%(4)	1.40	%(4)	1.80	%	22	%(6)	$	644,215
0.00	$	36.17	(0.08	)%	1.25	%(4)	1.38	%(4)	7.60	%	73	%(6)	$	920,586
0.00	$	35.72	(0.11	)%	1.25	%(4)	1.35	%(4)	22.52	%	47	%(6)	$	1,033,251

117

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income		Distributions From Net Realized Gains
INDEX FUND
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	32.98	0.30		1.35		(0.55	)	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	)
June 1, 1997 to May 31, 1998	$	39.49	0.58		10.74		(0.65	)	(3.80	)
INTERNATIONAL EQUITY
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	8.46	(0.00	)(8)	(0.45	)	0.00		0.00
October 1, 2001 to September 30, 2002	$	10.50	(0.01	)	(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
April 1, 1998 to September 30, 1998	$	11.05	0.00		(1.69	)	0.00		0.00
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	8.19	(0.04	)(8)	(0.41	)	0.00		0.00
October 1, 2001 to September 30, 2002	$	10.25	(0.09	)	(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
April 1, 1998 to September 30, 1998	$	11.01	(0.03	)	(1.68	)	0.00		0.00
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	8.18	(0.04	)(8)	(0.41	)	0.00		0.00
October 1, 2001 to September 30, 2002	$	10.24	(0.09	)	(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
April 1 ,1998(3) to September 30, 1998	$	11.01	(0.03	)	(1.68	)	0.00		0.00
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	8.46	0.00	(8)	(0.45	)	(0.01	)	0.00
October 1, 2001 to September 30, 2002	$	10.47	0.02		(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, 2002 to March 31, 2003 (Unaudited)	$	7.53	(0.00	)	0.15		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, 2002 to March 31, 2003 (Unaudited)	$	7.47	(0.03	)	0.15		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, 2002 to March 31, 2003 (Unaudited)	$	7.47	(0.01	)	0.13		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, 2002 to March 31, 2003 (Unaudited)	$	7.55	0.00		0.16		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

118

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	34.09	1.63	%	0.25	%(4)	0.41	%(4)	5.00	%	3	%(5)	$	651,974
0.00	$	32.98	1.28	%	0.25	%(4)	0.39	%(4)	(20.54	)%	4	%(5)	$	596,168
0.00	$	42.00	1.11	%	0.25	%(4)	0.30	%(4)	(26.63	)%	2	%(5)	$	733,380
0.00	$	59.73	1.02	%	0.25	%(4)	0.33	%(4)	13.06	%	8	%(5)	$	982,975
0.00	$	53.67	1.17	%	0.25	%(4)	0.55	%(4)	(1.00	)%	11	%(5)	$	813,861
0.00	$	54.83	1.28	%	0.25	%(4)	0.55	%(4)	20.57	%	4	%(5)	$	1,154,289
0.00	$	46.36	1.53	%	0.25	%(4)	0.58	%(4)	30.32	%	7	%(5)	$	784,205
0.00	$	8.01	(0.09	)%	1.50	%	1.88	%	(5.32	)%	33	%	$	20,873
0.00	$	8.46	(0.08	)%	1.72	%	1.96	%	(19.43	)%	52	%	$	22,806
0.00	$	10.50	0.05	%	1.75	%	1.81	%	(29.59	)%	36	%	$	30,727
0.00	$	15.24	(0.31	)%	1.75	%	2.00	%	21.65	%	26	%	$	43,659
0.00	$	12.70	(0.17	)%	1.75	%	2.10	%	35.68	%	41	%	$	35,779
0.00	$	9.36	0.10	%	1.75	%	2.06	%	(15.29	)%	21	%	$	23,857
0.00	$	7.74	(0.97	)%	2.25	%	2.94	%	(5.49	)%	33	%	$	24,653
0.00	$	8.19	(0.83	)%	2.47	%	3.06	%	(20.10	)%	52	%	$	29,107
0.00	$	10.25	(0.72	)%	2.50	%	2.70	%	(30.12	)%	36	%	$	41,122
0.00	$	14.99	(1.01	)%	2.50	%	2.95	%	20.65	%	26	%	$	63,019
0.00	$	12.54	(0.81	)%	2.40	%	2.79	%	34.84	%	41	%	$	37,911
0.00	$	9.30	(0.56	)%	2.40	%	2.70	%	(15.53	)%	21	%	$	30,070
0.00	$	7.73	(0.98	)%	2.25	%	2.82	%	(5.50	)%	33	%	$	2,065
0.00	$	8.18	(0.78	)%	2.47	%	2.96	%	(20.12	)%	52	%	$	2,167
0.00	$	10.24	(0.69	)%	2.50	%	2.50	%	(30.14	)%	36	%	$	2,704
0.00	$	14.98	(0.86	)%	2.50	%	3.02	%	20.72	%	26	%	$	2,857
0.00	$	12.54	(0.78	)%	2.37	%	2.72	%	34.84	%	41	%	$	673
0.00	$	9.30	(1.15	)%	2.40	%	2.66	%	(15.53	)%	21	%	$	297
0.00	$	8.01	0.04	%	1.25	%	1.39	%	(5.19	)%	33	%	$	363,077
0.00	$	8.46	0.31	%	1.44	%	1.46	%	(19.20	)%	52	%	$	372,380
0.00	$	10.47	0.31	%	1.50	%	1.53	%	(29.47	)%	1	%	$	108,796
0.00	$	15.17	0.32	%	1.50	%	1.92	%	13.01	%	26	%	$	122,397
0.00	$	7.68	(0.15	)%	1.22	%(4)	4.54	%(4)	1.99	%	71	%(5)	$	889
0.00	$	7.53	(0.15	)%	1.20	%(4)	6.48	%(4)	(20.99	)%	123	%(5)	$	898
0.00	$	9.53	1.17	%	0.95	%(4)	1.24	%(4)	(4.70	)%	10	%(5)	$	41
0.00	$	7.59	(0.91	)%	1.97	%(4)	5.04	%(4)	1.61	%	71	%(5)	$	1,116
0.00	$	7.47	(0.90	)%	1.95	%(4)	8.45	%(4)	(21.53	)%	123	%(5)	$	1,041
0.00	$	9.52	(0.24	)%	1.78	%(4)	1.78	%(4)	(4.80	)%	10	%(5)	$	91
0.00	$	7.59	(0.90	)%	1.97	%(4)	5.18	%(4)	1.61	%	71	%(5)	$	303
0.00	$	7.47	(0.93	)%	1.95	%(4)	8.37	%(4)	(21.62	)%	123	%(5)	$	200
0.00	$	9.53	0.00	%	1.83	%(4)	1.83	%(4)	(4.70	)%	10	%(5)	$	26
0.00	$	7.71	(0.11	)%	0.97	%(4)	3.29	%(4)	2.12	%	71	%(5)	$	11,554
0.00	$	7.55	0.05	%	0.95	%(4)	5.81	%(4)	(20.78	)%	123	%(5)	$	4,155
0.00	$	9.53	1.00	%	0.86	%(4)	0.86	%(4)	(4.70	)%	10	%(5)	$	10

119

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income		Distributions From Net Realized Gains
LARGE COMPANY GROWTH
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	34.52	(0.14	)	2.12		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, 2002 to March 31, 2003 (Unaudited)	$	31.72	(0.30	)	2.01		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, 2002 to March 31, 2003 (Unaudited)	$	31.76	(0.20	)	1.93		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, 2002 to March 31, 2003 (Unaudited)	$	32.65	(0.04	)	1.97		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	)
June 1, 1997 to May 31, 1998	$	32.63	(0.11	)	10.20		0.00		(2.78	)
MID CAP GROWTH
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	3.63	(0.02	)	0.39		0.00		0.00
October 1, 2001 to September 30, 2002	$	4.45	(0.05	)	(0.77	)	0.00		0.00
October 16, 2000(3) to September 30, 2001	$	10.00	(0.04	)	(5.51	)	0.00		0.00
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	3.58	(0.04	)	0.39		0.00		0.00
October 1, 2001 to September 30, 2002	$	4.42	(0.09	)	(0.75	)	0.00		0.00
October 16, 2000(3) to September 30, 2001	$	10.00	(0.08	)	(5.50	)	0.00		0.00
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	3.58	(0.06	)	0.41		0.00		0.00
October 1, 2001 to September 30, 2002	$	4.42	(0.10	)	(0.74	)	0.00		0.00
October 16, 2000(3) to September 30, 2001	$	10.00	(0.06	)	(5.52	)	0.00		0.00
SIFE SPECIALIZED FINANCIAL SERVICES
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	3.71	(0.05	)	(0.18	)	0.03		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, 2002 to March 31, 2003 (Unaudited)	$	3.71	(0.04	)	(0.19	)	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	)

120

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains		Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
				Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00		$	36.50	(0.40	)%	1.20	%(4)	1.40	%(4)	5.74	%	4	%(5)	$	173,395
0.00		$	34.52	(0.76	)%	1.20	%(4)	1.45	%(4)	(22.55	)%	18	%(5)	$	141,774
(0.04	)	$	44.57	(0.71	)%	1.20	%(4)	1.36	%(4)	(39.85	)%	13	%(5)	$	202,514
0.00		$	75.03	(0.73	)%	1.20	%(4)	1.31	%(4)	32.50	%	9	%(5)	$	303,948
0.00		$	57.96	(0.58	)%	1.20	%(4)	1.40	%(4)	(0.22	)%	5	%(5)	$	188,890
0.00		$	58.09	(0.68	)%	1.20	%(4)	1.35	%(4)	54.16	%	28	%(5)	$	191,233
0.00		$	33.43	(1.03	)%	1.80	%(4)	2.38	%(4)	5.39	%	4	%(5)	$	212,212
0.00		$	31.72	(1.31	)%	1.75	%(4)	2.46	%(4)	(22.97	)%	18	%(5)	$	218,625
(0.04	)	$	41.18	(1.26	)%	1.75	%(4)	2.19	%(4)	(40.18	)%	13	%(5)	$	307,706
0.00		$	69.77	(1.28	)%	1.75	%(4)	2.15	%(4)	31.75	%	9	%(5)	$	461,918
0.00		$	54.29	(1.13	)%	1.75	%(4)	2.05	%(4)	(0.39	)%	5	%(5)	$	201,351
0.00		$	54.50	(1.22	)%	1.76	%(4)	2.15	%(4)	40.01	%	28	%(5)	$	156,870
0.00		$	33.49	(1.02	)%	1.80	%(4)	2.19	%(4)	5.45	%	4	%(5)	$	29,290
0.00		$	31.76	(1.31	)%	1.75	%(4)	2.28	%(4)	(22.95	)%	18	%(5)	$	27,092
(0.04	)	$	41.22	(1.26	)%	1.75	%(4)	2.15	%(4)	(40.19	)%	13	%(5)	$	27,189
0.00		$	69.85	(1.29	)%	1.75	%(4)	2.16	%(4)	20.72	%	9	%(5)	$	25,463
0.00		$	34.58	(0.19	)%	0.98	%(4)	1.03	%(4)	5.91	%	4	%(5)	$	1,250,805
0.00		$	32.65	(0.56	)%	1.00	%(4)	1.03	%(4)	(22.37	)%	18	%(5)	$	1,038,491
(0.04	)	$	42.06	(0.48	)%	0.97	%(4)	0.97	%(4)	(39.73	)%	13	%(5)	$	1,066,607
0.00		$	70.71	(0.53	)%	1.00	%(4)	1.02	%(4)	32.74	%	9	%(5)	$	1,532,428
0.00		$	54.60	(0.38	)%	1.00	%(4)	1.04	%(4)	(0.13	)%	5	%(5)	$	801,943
0.00		$	54.67	(0.49	)%	1.00	%(4)	1.09	%(4)	39.96	%	28	%(5)	$	645,385
0.00		$	39.94	(0.36	)%	1.00	%(4)	1.03	%(4)	32.29	%	13	%(5)	$	232,499
0.00		$	4.00	(0.94	)%	1.41	%	2.57	%	10.19	%	143	%	$	3,770
0.00		$	3.63	(1.07	)%	1.40	%	3.02	%	(18.43	)%	340	%	$	3,613
0.00		$	4.45	(0.92	)%	1.40	%	2.47	%	(55.50	)%	285	%	$	3,912
0.00		$	3.93	(1.70	)%	2.17	%	3.44	%	9.78	%	143	%	$	3,832
0.00		$	3.58	(1.82	)%	2.15	%	4.21	%	(19.00	)%	340	%	$	3,662
0.00		$	4.42	(1.68	)%	2.15	%	3.17	%	(55.80	)%	285	%	$	4,481
0.00		$	3.93	(1.70	)%	2.17	%	4.44	%	9.78	%	143	%	$	352
0.00		$	3.58	(1.82	)%	2.15	%	5.03	%	(19.00	)%	340	%	$	442
0.00		$	4.42	(1.68	)%	2.15	%	3.77	%	(55.80	)%	285	%	$	605
0.00		$	3.51	(0.98	)%	1.35	%	1.60	%	(4.51	)%	148	%	$	447,920
0.00		$	3.71	0.98	%	1.34	%	1.46	%	(17.95	)%	17	%	$	509,614
0.00		$	5.38	1.15	%	1.25	%	1.25	%	(2.90	)%	11	%	$	679,747
0.00		$	5.80	1.48	%	1.25	%	1.25	%	21.00	%	16	%	$	780,213
0.00		$	5.21	1.07	%	1.25	%	1.25	%	(8.50	)%	25	%	$	862,539
0.00		$	6.26	1.04	%	1.25	%	1.25	%	5.10	%	31	%	$	1,132,041
0.00		$	3.50	(0.23	)%	2.10	%	2.58	%	(5.12	)%	148	%	$	18,929
0.00		$	3.71	0.17	%	2.13	%	2.48	%	(16.96	)%	17	%	$	20,986
0.00		$	5.38	0.16	%	2.25	%	2.25	%	(3.90	)%	11	%	$	24,732
0.00		$	5.80	0.50	%	2.25	%	2.25	%	19.80	%	16	%	$	26,965
0.00		$	5.21	0.06	%	2.25	%	2.25	%	(9.40	)%	25	%	$	31,250
0.00		$	6.26	0.00	%	2.25	%	2.25	%	4.10	%	31	%	$	39,294

121

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income		Distributions From Net Realized Gains
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	3.69	(0.04	)	(0.18	)	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, 2002 to March 31, 2003 (Unaudited)	$	9.72	(0.05	)	0.18		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	)
April 1, 1998 to September 30, 1998	$	25.62	(0.09	)	(7.67	)	0.00		0.00
CLASS B
October 1, 2002 to March 31, 2003 (Unaudited)	$	9.33	(0.18	)	0.25		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	)
April 1, 1998 to September 30, 1998	$	25.38	(0.18	)	(7.56	)	0.00		0.00
CLASS C
October 1, 2002 to March 31, 2003 (Unaudited)	$	9.32	(0.10	)	0.17		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	)
April 1, 1998 to September 30, 1998	$	25.38	(0.18	)	(7.57	)	0.00		0.00
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	9.94	0.02		0.10		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	)
April 1, 1998 to September 30, 1998	$	25.77	(0.02	)	(7.73	)	0.00		0.00
SMALL CAP OPPORTUNITIES
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	22.70	(0.07	)	0.37		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	)
June 1, 1997 to May 31, 1998	$	19.84	(0.06	)	4.36		0.00		(0.53	)

122

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	3.49	(0.23	)%	2.10	%	2.81	%	(4.88	)%	148	%	$	1,574
0.00	$	3.69	0.17	%	2.13	%	2.74	%	(15.31	)%	17	%	$	1,793
0.00	$	5.37	0.16	%	2.25	%	2.25	%	(3.90	)%	11	%	$	2,071
0.00	$	5.79	0.50	%	2.25	%	2.25	%	19.80	%	16	%	$	2,139
0.00	$	5.20	0.06	%	2.25	%	2.25	%	(9.30	)%	25	%	$	3,197
0.00	$	6.24	0.00	%	2.25	%	2.25	%	3.60	%	31	%	$	3,551
0.00	$	9.85	(1.03	)%	1.41	%	1.79	%	1.34	%	122	%	$	65,290
0.00	$	9.72	(1.06	)%	1.40	%	1.74	%	(26.53	)%	221	%	$	74,937
0.00	$	13.23	(0.86	)%	1.36	%	1.61	%	(59.99	)%	250	%	$	101,201
0.00	$	43.48	(0.78	)%	1.29	%	1.86	%	81.03	%	263	%	$	203,164
0.00	$	26.23	(0.92	)%	1.35	%	1.53	%	58.81	%	249	%	$	16,662
0.00	$	17.86	(0.82	)%	1.36	%	1.49	%	(30.29	)%	110	%	$	10,899
0.00	$	9.40	(1.78	)%	2.16	%	3.12	%	0.75	%	122	%	$	24,173
0.00	$	9.33	(1.81	)%	2.15	%	3.04	%	(27.00	)%	221	%	$	28,360
0.00	$	12.78	(1.60	)%	2.10	%	2.32	%	(60.30	)%	250	%	$	44,832
0.00	$	42.33	(1.53	)%	2.04	%	2.72	%	79.74	%	263	%	$	116,520
0.00	$	25.72	(1.67	)%	2.09	%	2.29	%	57.66	%	249	%	$	18,718
0.00	$	17.64	(1.56	)%	2.11	%	2.13	%	(30.50	)%	110	%	$	13,071
0.00	$	9.39	(1.77	)%	2.16	%	2.72	%	0.75	%	122	%	$	7,618
0.00	$	9.32	(1.81	)%	2.15	%	2.66	%	(27.02	)%	221	%	$	7,742
0.00	$	12.77	(1.60	)%	2.10	%	2.18	%	(60.31	)%	250	%	$	10,856
0.00	$	42.31	(1.53	)%	2.04	%	2.44	%	79.72	%	263	%	$	28,018
0.00	$	25.71	(1.68	)%	2.10	%	2.68	%	57.69	%	249	%	$	1,711
0.00	$	17.63	(1.56	)%	2.11	%	2.71	%	(30.54	)%	110	%	$	1,426
0.00	$	10.06	(0.83	)%	1.20	%	1.45	%	1.21	%	122	%	$	47,477
0.00	$	9.94	(0.86	)%	1.20	%	1.36	%	(26.32	)%	221	%	$	67,284
0.00	$	13.49	(0.71	)%	1.20	%	1.27	%	(59.93	)%	250	%	$	96,626
0.00	$	44.27	(0.68	)%	1.20	%	1.43	%	81.35	%	263	%	$	186,315
0.00	$	26.66	(0.38	)%	0.76	%	1.29	%	59.98	%	249	%	$	22,023
0.00	$	18.02	(0.21	)%	0.76	%	1.21	%	(30.07	)%	110	%	$	56,438
0.00	$	21.68	(0.61	)%	1.21	%	1.27	%	1.02	%	60	%	$	283,066
0.00	$	22.70	(0.81	)%	1.25	%	1.27	%	(9.81	)%	97	%	$	294,880
0.00	$	26.49	(0.37	)%	1.25	%	1.33	%	(3.46	)%	117	%	$	283,154
0.00	$	29.97	(0.45	)%	1.25	%	1.28	%	46.20	%	165	%	$	271,936
0.00	$	20.50	(0.44	)%	1.25	%	1.29	%	(0.05	)%	40	%	$	195,283
0.00	$	20.51	(0.47	)%	1.25	%(4)	1.35	%(4)	(13.02	)%	119	%(5)	$	201,816
0.00	$	23.61	(0.40	)%	1.25	%(4)	1.38	%(4)	21.95	%	55	%(5)	$	284,828

123

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income	Distributions From Net Realized Gains
SMALL COMPANY GROWTH
INSTITUTIONAL CLASS
October 1, 2002 to March 31, 2003 (Unaudited)	$	17.35	(0.08	)	0.60		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 31, 1999	$	33.69	(0.15	)	(3.67	)	0.00	(2.43	)
June 1, 1997 to May 31, 1998	$	31.08	(0.23	)	6.88		0.00	(4.04	)
SMALL COMPANY VALUE
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	8.43	0.02		0.05		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, 2002 to March 31, 2003 (Unaudited)	$	8.38	(0.01	)	0.06		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, 2002 to March 31, 2003 (Unaudited)	$	8.38	(0.01	)	0.05		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, 2002 to March 31, 2003 (Unaudited)	$	8.44	0.02		0.06		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, 2002 to March 31, 2003 (Unaudited)	$	7.81	(0.04	)	0.43		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, 2002 to March 31, 2003 (Unaudited)	$	7.72	(0.08	)	0.44		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, 2002 to March 31, 2003 (Unaudited)	$	7.73	(0.08	)	0.44		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

124

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	17.87	(0.83	)%	1.23	%(4)	1.30	%(4)	3.00	%	79	%(5)	$	309,340
0.00	$	17.35	(0.68	)%	1.22	%(4)	1.24	%(4)	(20.16	)%	169	%(5)	$	329,964
0.00	$	21.73	(0.44	)%	1.21	%(4)	1.21	%(4)	(23.33	)%	206	%(5)	$	431,695
0.00	$	36.22	(0.59	)%	1.25	%(4)	1.27	%(4)	34.00	%	203	%(5)	$	603,584
0.00	$	27.03	(0.52	)%	1.25	%(4)	1.30	%(4)	(1.49	)%	55	%(5)	$	515,292
0.00	$	27.44	(0.52	)%	1.25	%(4)	1.30	%(4)	(10.72	)%	154	%(5)	$	557,516
0.00	$	33.69	(0.73	)%	1.25	%(4)	1.26	%(4)	22.38	%	123	%(5)	$	748,269
0.00	$	8.50	(0.46	)%	1.45	%(4)	1.45	%(4)	0.88	%	37	%(5)	$	5,205
0.00	$	8.43	0.00	%	1.38	%(4)	2.32	%(4)	(15.70	)%	98	%(5)	$	4,276
0.00	$	8.43	(0.30	)%	2.20	%(4)	2.20	%(4)	0.65	%	37	%(5)	$	4,763
0.00	$	8.38	(0.74	)%	2.14	%(4)	3.46	%(4)	(16.20	)%	98	%(5)	$	4,860
0.00	$	8.42	(0.31	)%	2.20	%(4)	2.20	%(4)	0.53	%	37	%(5)	$	513
0.00	$	8.38	0.68	%	2.24	%(4)	7.48	%(4)	(7.40	)%	98	%(5)	$	59
0.00	$	8.52	(0.70	)%	1.20	%(4)	1.20	%(4)	1.00	%	37	%(5)	$	18,493
0.00	$	8.44	0.34	%	1.23	%(4)	3.58	%(4)	(15.60	)%	98	%(5)	$	5,465
0.00	$	8.20	(1.06	)%	1.65	%	2.04	%	4.99	%	84	%	$	10,896
0.00	$	7.81	(1.07	)%	1.65	%	1.92	%	(19.48	)%	138	%	$	12,217
0.00	$	9.70	(0.95	)%	1.65	%	2.66	%	(3.00	)%	48	%	$	12,331
0.00	$	8.08	(1.81	)%	2.40	%	2.92	%	4.66	%	84	%	$	14,701
0.00	$	7.72	(1.82	)%	2.40	%	2.87	%	(20.08	)%	138	%	$	15,576
0.00	$	9.66	(1.67	)%	2.40	%	3.46	%	(3.40	)%	48	%	$	16,320
0.00	$	8.09	(1.81	)%	2.40	%	3.11	%	4.66	%	84	%	$	1,905
0.00	$	7.73	(1.82	)%	2.40	%	3.03	%	(19.98	)%	138	%	$	2,051
0.00	$	9.66	(1.71	)%	2.40	%	3.99	%	(3.40	)%	48	%	$	2,277

125

STOCK FUNDS FINANCIAL HIGHLIGHTS

	Beginning Net Asset Value Per Share		Net Investment Income (Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Dividends From Net Investment Income	Distributions From Net Realized Gains
SPECIALIZED TECHNOLOGY
CLASS A
October 1, 2002 to March 31, 2003 (Unaudited)	$	2.23	(0.02	)	0.23		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, 2002 to March 31, 2003 (Unaudited)	$	2.19	(0.03	)	0.24		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, 2002 to March 31, 2003 (Unaudited)	$	2.19	(0.02	)	0.23		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

126

FINANCIAL HIGHLIGHTS STOCK FUNDS

Distributions In Excess of Realized Gains	Ending Net Asset Value Per Share		Ratio to Average Net Assets (Annualized)						Total Return(2)		Portfolio Turnover Rate		Net Assets at End of Period (000’s Omitted)
			Net Investment Income (Loss)		Net Expenses		Gross Expenses(1)
0.00	$	2.44	(1.19	)%	1.75	%	2.42	%	9.42	%	120	%	$	13,904
0.00	$	2.23	(1.37	)%	1.75	%	2.47	%	(26.16	)%	388	%	$	13,559
0.00	$	3.02	(0.47	)%	1.75	%	2.00	%	(70.13	)%	773	%	$	22,946
0.00	$	10.11	(0.13	)%	1.75	%	2.02	%	1.10	%	7	%	$	42,626
0.00	$	2.40	(1.94	)%	2.50	%	3.25	%	9.59	%	120	%	$	20,757
0.00	$	2.19	(2.12	)%	2.50	%	3.46	%	(27.00	)%	388	%	$	20,949
0.00	$	3.00	(1.24	)%	2.50	%	2.72	%	(70.33	)%	773	%	$	34,218
0.00	$	10.11	(0.88	)%	2.50	%	2.77	%	1.10	%	7	%	$	52,958
0.00	$	2.40	(1.94	)%	2.50	%	2.99	%	9.59	%	120	%	$	4,548
0.00	$	2.19	(2.12	)%	2.50	%	3.16	%	(27.00	)%	388	%	$	4,295
0.00	$	3.00	(1.22	)%	2.50	%	2.66	%	(70.33	)%	773	%	$	7,320
0.00	$	10.11	(0.90	)%	2.50	%	2.77	%	1.10	%	7	%	$	14,176

127

STOCK FUNDS NOTES TO FINANCIAL HIGHLIGHTS

NOTES TO FINANCIAL HIGHLIGHTS

(1)	During each period, various fees and expenses were waived and reimbursed. The ratio of Gross Expenses to Average Net Assets reflects the expense ratio in the absence of any waivers and reimbursements (Note 9).
(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.
(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)	Actual dividends per share were less than $0.01.
(8)	Calculated based upon average shares outstanding.

The accompanying notes are an integral part of these financial statements.

128

NOTES TO FINANCIAL STATEMENTS 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 67 separate series. These financial statements present the Diversified Equity, Diversified Small Cap, Equity Income, Equity Index, Equity Value, Growth, Growth Equity, Index, International Equity, Large Cap Appreciation, Large Company Growth, Mid Cap Growth, SIFE Specialized Financial Services, Small Cap Growth, Small Cap Opportunities, Small Company Growth, Small Company Value, Specialized Health Sciences and Specialized Technology Funds (each, a “Fund”, collectively, the “Funds”), each a series of the Trust. Each Fund, except for the Specialized Technology Fund and the Specialized Health Sciences Fund, is considered diversified under the 1940 Act.

On December 18, 2000, the Board of Trustees of the Trust and the Board of Trustees of the Brenton Funds approved an Agreement and Plan of Reorganization providing for the reorganization of the Brenton Value Equity Fund into the Growth Fund of the Trust. Effective at the close of business on April 27, 2001, the Wells Fargo Growth Fund acquired all of the net assets of the Brenton Value Equity Fund. The Brenton Value Equity Fund exchanged its 2,578,446 shares (valued at $40,298,867) for 2,340,050 shares of the Wells Fargo Growth Fund. The net assets of the Brenton Value Equity Fund included unrealized appreciation of $14,893,432.

On February 26, 2001, the Wells Fargo Growth Fund acquired all of the net assets of the Achievement Equity Fund. The Achievement Equity Fund class A exchanged 659,281 class A shares (valued at $8,963,115) for 615,208 class A shares of the Wells Fargo Growth Fund. The Achievement Equity Fund exchanged 143,486 of its class B shares (valued at $1,901,770) for 187,141 class B shares of the Wells Fargo Fund. The Achievement Equity Fund Institutional class exchanged 13,353,450 Institutional class shares (valued at $182,844,403) for 10,681,336 Institutional class shares of the Wells Fargo Growth Fund. The net assets of the Achievement Equity Fund included unrealized appreciation of $28,613,638.

Effective November 16, 2001, shareholders of the Wells Fargo Diversified Small Cap Fund Class A and B shares were reorganized into the Fund’s Institutional class shares. The Fund’s class A and class B exchanged 102,295 shares (valued at $1,082,212) and 90,071 shares (valued at $876,266), respectively, for 195,723 shares of the Institutional class.

Effective November 16, 2001, the Wells Fargo Equity Income Fund acquired all the assets of the Wells Fargo Disciplined Growth Fund. The Wells Fargo Disciplined Growth Fund exchanged its 2,075,892 shares (valued at $15,653,674) for 404,711 shares of the Wells Fargo Equity Income Fund. The net assets of the Wells Fargo Equity Income Fund included unrealized depreciation of $(1,042,142).

On February 22, 2002, the Wells Fargo SIFE Specialized Financial Services Fund acquired all of the net assets of the SIFE Trust Fund. The SIFE Trust Fund exchanged 102,374,156 class A-I and 21,875,513 class A-II shares (valued at $534,544,388 and $114,421,606 for class A-I and A-II, respectively) for 124,287,800 class A shares of the Wells Fargo SIFE Specialized Financial Services Fund. The SIFE Trust Fund exchanged 4,528,850 class B shares (valued at $23,620,492) and 380,634 class C shares (valued at $1,981,000) for identical amounts of the Wells Fargo SIFE Specialized Financial Services Fund class B and C shares, respectively.

Effective May 17, 2002, the International Equity Fund acquired all the net assets of the International Fund. The International Fund class A exchanged $141,226 class A shares (valued at $2,142,547) for 184,187 class A shares of the International Equity Fund. The International Fund class B exchanged 151,290 shares (valued at $2,237,719) for 197,888 class B shares of the International Equity Fund. The International Fund Institutional class exchanged 12,237,853 shares (valued at $185,358,163) for 15,939,883 Institutional class shares of the International Equity Fund. The net assets of the International Fund included unrealized appreciation of 1,417,469.

Effective May 17, 2002, the Small Cap Opportunities Fund acquired all the net assets of the Small Cap Value Fund. The Small Cap Value Fund exchanged its 1,638,920 Institutional class shares (valued at $18,108,210) for 594,818 Institutional class shares of the Small Cap Opportunities Fund. The net assets of the Small Cap Value Fund included unrealized appreciation of $4,682,326. Also on May 17, 2002, shareholders of the Wells Fargo Small Cap Opportunities Fund Class A and B shares were reorganized into the Fund’s Institutional class shares. The Fund’s class A and class B exchanged 194,998 shares (valued at $5,911,776) and 216,383 shares (valued at $6,254,094), respectively, for 399,624 shares of the Institutional class.

The Diversified Equity, Equity Income, Equity Value, Growth, Growth Equity, International Equity, Large Cap Appreciation, Large Company Growth, Small Cap Growth and Small Company Value Funds offer  

129

STOCK FUNDS NOTES TO FINANCIAL STATEMENTS

Class A, Class B, and Institutional Class shares. In addition, the Diversified Equity, Equity Income, Equity Value, Growth Equity, International Equity, Large Cap Appreciation, Large Company Growth, Small Cap Growth and Small Company Value Funds offer Class C shares. The Equity Index Fund only offers Class A and Class B shares. The Mid Cap Growth, SIFE Specialized Financial Services, Specialized Health Sciences, and Specialized Technology Funds only offer Class A, Class B, and Class C shares. The Diversified Small Cap, Index, Small Cap Opportunities and Small Company Growth Funds only offer Institutional Class shares. Shareholders of each class may 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 are allocated to each class pro-rata based on 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, shareholder servicing, and transfer agency fees.

The Diversified Equity, Diversified Small Cap, Equity Income, Growth Equity, Index, Large Cap Appreciation, Large Company Growth, Small Company Growth, and Small Company Value Funds 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. The Funds account for their investment in the Master Portfolios as partnership investments and record daily their share of the Master Portfolio’s income, expenses, and realized and unrealized gain and loss. The financial statements of the Master Portfolios are in this report and should be read in conjunction with the Funds’ financial statements.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies which are consistently followed by the Trust in the preparation of its financial statements are in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for investment companies.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

Investments in securities are valued each business day as of the close of regular trading on the New York Stock Exchange which is usually 1:00 p.m. (Pacific Time), and 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. Securities for which quotations are not readily available are valued at fair value as determined by policies set by the Trust’s Board of Trustees.

Debt securities maturing in 60 days or less are valued at amortized cost. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity, which approximates market value.

Securities held in the Master Portfolios are valued at their net asset value at the close of business each day as discussed in the Notes to Financial Statements of the Master Portfolios, which are included elsewhere in this report.

FOREIGN CURRENCY TRANSLATION

The accounting records of the International Equity Fund are maintained in U.S. dollars. Assets, including investment securities, and liabilities denominated in foreign currency are translated into U.S. dollars at the prevailing rates of exchange at the date of valuation. Purchases and sales of securities, 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

130

NOTES TO FINANCIAL STATEMENTS STOCK FUNDS

between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities, at fiscal period-end, resulting from changes in exchange rates.

The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities at fiscal period-end are not separately presented. Such changes are recorded with net realized and unrealized gain from investments. Gains and losses from certain foreign currency transactions are treated as ordinary income for U.S. federal income tax purposes.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

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.

REPURCHASE AGREEMENTS

Each Fund 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 Funds’ custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price. The repurchase agreements held by the Funds are collateralized by instruments such as U.S. Treasury, federal agency, or high-grade corporate obligations.

INVESTMENTS SOLD SHORT

The Specialized Health Sciences and Specialized Technology Funds may engage in short-selling to the extent permitted by the Funds’ investment policies in attempting to increase investment return which obligates the Funds to replace the security borrowed by purchasing the security at current market value. The Funds will incur a loss if the price of the security increases between the date of the short sale and the date on which the Funds replace the borrowed security. The Funds realize a gain if the price of the security declines between those dates. Until the Funds replace 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, 2003, if any, and their related market values and proceeds are set forth in the Schedule of Securities Sold Short.

FUTURES CONTRACTS

The Funds 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. On March 31, 2003, the Equity Index Fund held the following long futures contracts:

Fund	Contracts	Type	Expiration Date	Notional Contract Value	Net Unrealized Depreciation
Equity Index Fund	36 Long	S&P 500 Index	June 2003	7,623,000	(235,775)

The Equity Index Fund has pledged a U.S. Treasury Bill with a par value of $540,000.

131

STOCK FUNDS NOTES TO FINANCIAL STATEMENTS

SECURITY LOANS

The Funds may loan securities in return for securities and cash collateral, which is invested in various short-term fixed income securities. The Funds 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 to the Fund 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. The value of the securities on loan and the value of the related collateral for the six- month period ended March 31, 2003 were as follows:

Fund	Securities		Collateral
Equity Index Fund	$	34,751,649	$	37,308,454
Equity Value Fund		1,930,350		2,111,472
Growth Fund		15,810,672		16,706,836
International Equity		20,851,337		22,492,720
Mid Cap Growth Fund		2,390,976		2,553,765
SIFE Specialized Financial Services Fund		54,379,779		56,836,535
Small Cap Growth Fund		34,799,849		37,193,357
Small Cap Opportunities Fund		26,939,795		27,915,264
Specialized Technology Fund		13,923,031		15,106,428

DISTRIBUTIONS TO SHAREHOLDERS

Dividends to shareholders from net investment income, if any, are declared and distributed annually, with the exception of the Equity Income and Equity Value Funds. Dividends to shareholders from net investment income of the Equity Income and Equity Value Funds, if any, are 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, the Funds 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. The differences between the income or gains distributed on a book versus tax basis are shown as excess distributions of net investment income and net realized gain on sales of investments in the accompanying Statements of Changes in Net Assets. 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.

OPTIONS

An option is a right to buy or sell a particular security at a specified price within a limited period of time. The buyer of the option, in return for a premium paid to the seller, has the right to buy (in the case of a call option) or sell (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 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.

132

NOTES TO FINANCIAL STATEMENTS STOCK FUNDS

WRITTEN OPTIONS TRANSACTIONS

Written options transactions, during the six-months ended March 31, 2003, were as follows:

	SIFE Specialized Financial Services						Specialized Technology
Call Options Written	Principal Amount of Contracts			Premiums Received			Principal Amount of Contracts			Premiums Received
Options at beginning of period	$	0		$	0		$	2,320		$	422,216
Options written		30,500			3,647,153			3,441			711,789
Options terminated in closing transactions		(27,500	)		(3,023,242	)		(2,459	)		(622,003	)
Options expired		0			0			(1,878	)		(316,243	)
Options assigned		0			0			(244	)		(52,946	)
Outstanding, March 31, 2003	$	3,000		$	623,911		$	1,180		$	142,813

	Specialized Technology
Put Options Written	Principal Amount of Contracts			Premiums Received
Options at beginning of period	$	847		$	408,191
Options written		921			494,388
Options terminated in closing transactions		(150	)		(490,876	)
Options expired		(1,552	)		(375,602	)
Options exercised		0			0
Options at end of period	$	66		$	36,101

As of the six months ended March 31, 2003 open written calls and puts were as follows:

WELLS FARGO SIFE SPECIALIZED FINANCIAL SERVICES FUND
	Calls
Issuer	Expiration Date	Strike Price		Contracts		Cost		Market Value
Bear Stearns	April 03	$	65	(1,000	)	(216,923	)	(195,000	)
Fifth Third Bancorp	May 03		55	(2,000	)	(406,988	)	(160,000	)
Total				(3,000	)	(623,911	)	(355,000	)
WELLS FARGO SPECIALIZED TECHNOLOGY FUND
	Calls
Issuer	Expiration Date	Strike Price		Contracts		Cost		Market Value
Alcatel SA	June 03	$	7.50	(1,088	)	(97,090	)	(76,160	)
Ebay Incorporated	July 03		95	(92	)	(45,723	)	(30,360	)
Total				(1,180	)	(142,813	)	(106,520	)
	Puts
Issuer	Expiration Date	Strike Price		Contracts		Cost		Market Value
Lockheed Martin	September 03	$	45	(44	)	(20,547	)	(14,520	)
Northrop Grumman	August 03		85	(22	)	(15,554	)	(13,420	)
Total				(66	)	(36,101	)	(27,940	)

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 in 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, 2003.

133

STOCK FUNDS NOTES TO FINANCIAL STATEMENTS

The following Funds had estimated net capital loss carryforwards, which are available to offset future net realized capital gains:

Fund	Year Expires	Capital Loss Carryforwards
Diversified Equity Fund	2010	$	13,278,866
Equity Value Fund	2010		263,763
Growth Fund	2008		4,522,230
	2008		14,554
	2009		3,235,802
	2010		34,534,875
Growth Equity Fund	2010		16,713,996
Index Fund	2010		12,406,176
International Equity Fund	2008		3,627,461
	2009		43,560,810
	2009		746,353
	2010		9,594,189
Large Company Growth Fund	2010		91,866,464
Mid Cap Growth Fund	2009		5,010
	2010		4,424,582
Small Company Growth Fund	2010		57,281,273
Small Cap Growth Fund	2006		9,080,292
	2007		1,513,382
	2009		8,121,572
	2010		199,624,116
Specialized Health Sciences Fund	2010		317,612
Specialized Technology Fund	2008		319,303
	2009		8,311,665
	2010		108,669,841

The capital loss carryforwards of the Funds listed above 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.

For Tax Purposes, the following Funds have a current year deferred Post-October capital loss. These losses will be realized for tax purposes on the first day of the succeeding year.

Fund Name	Deferred Post-October Capital Loss
Equity Value Fund	$	1,532,036
Growth Fund		34,485,082
Index Fund		5,382,678
International Equity Fund		24,571,569
Large Cap Appreciation Fund		159,303
Large Company Growth Fund		141,811,237
Mid Cap Growth Fund		3,145,548
Small Company Growth Fund		4,348,322
Small Cap Growth Fund		101,322,475
Specialized Health Sciences Fund		5,691,608
Specialized Technology Fund		11,121,988

134

NOTES TO FINANCIAL STATEMENTS STOCK FUNDS

3. ADVISORY FEES

The Trust has entered into an advisory contract on behalf of the Funds with Wells Fargo Funds Management, LLC (“Funds Management”). Pursuant to the advisory contract, Funds Management has agreed to provide the following Funds with daily portfolio management, for which Funds Management is entitled to be paid a monthly advisory fee at the following annual rates:

Fund	% of Average Daily Net Assets
Equity Index Fund	0.25
Equity Value Fund	0.75
Growth Fund	0.75
International Equity Fund	1.00
Mid Cap Growth Fund	0.75
SIFE Specialized Financial Services Fund	0.95
Small Cap Growth Fund	0.90
Small Cap Opportunities Fund	0.90
Specialized Health Sciences Fund	0.95
Specialized Technology Fund	1.05

The Diversified Equity, Diversified Small Cap, and Growth Equity Funds are invested in various 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 asset allocation advisory services regarding the determination of the asset allocations of each Fund’s investments in the various Master Portfolios. The Equity Income, Index, Large Cap Appreciation, Large Company Growth, Small Company Growth, and Small Company Value Funds invest all of their assets in single Master Portfolios and do not currently pay 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.

The Funds’ adviser is responsible for implementing the investment policies and guidelines for the Funds, and for supervising the sub-advisers who are responsible for the day-to-day portfolio management of the Funds.

Wells Capital Management Incorporated (“Wells Capital Management”), an affiliate of Funds Management, acts as investment sub-adviser to the Equity Index, Equity Value, Growth, International Equity, Mid Cap Growth, SIFE Specialized Financial Services and Small Cap Growth Funds. Wells Capital Management is entitled to receive from Funds Management, as compensation for its sub-advisory services to the Equity Index Fund, a monthly fee at the annual rate of 0.02% of the Fund’s average daily net assets up to $200 million and 0.01% of the Fund’s average daily net assets in excess of $200 million. For the Equity Value and Growth Funds, Wells Capital Management is entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 0.25% of each Fund’s average daily net assets up to $200 million, 0.20% for the next $200 million, and 0.15% of each Fund’s average daily net assets in excess of $400 million. For the International Equity Fund, Wells Capital Management is entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 0.35% of the Fund’s average daily net assets up to $200 million, and 0.25% of the Fund’s average daily net assets in excess of $200 million. For the Mid Cap Growth and Small Cap Growth Funds, Wells Capital Management is entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 0.25% of each Fund’s average daily net assets up to $200 million and 0.20% of each Fund’s average daily net assets in excess of $200 million.

Schroder Investment Management North America Inc. (“Schroder”), a wholly-owned U.S. subsidiary of Schroder Incorporated, which is a wholly-owned U.S. subsidiary of Schroder PLC, acts as sub-adviser to the Small Cap Opportunities Fund. Effective May 1, 2003, Schroder is entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 0.50% of the Fund’s average daily net assets up to $275 million and 0.45% of the Fund’s average daily net assets in excess of $275 million. Prior to May 1, 2003, Schroder was entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 0.60% of the Fund’s average daily net assets.

135

STOCK FUNDS NOTES TO FINANCIAL STATEMENTS

Dresdner RCM Global Investors LLC (“Dresdner”), an indirect wholly-owned subsidiary of Dresdner Bank AG, acts as sub-adviser to the Specialized Health Sciences Fund and Specialized Technology Fund. For the Specialized Health Sciences Fund, Dresdner is entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 0.95% of the Fund’s average daily net assets up to $100 million, 0.65% for the next $400 million, and 0.60% of the Fund’s average daily net assets in excess of $500 million. For the Specialized Technology Fund, effective April 1, 2003, Dresdner is entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 1.00% of the Fund’s average daily net assets up to $50 million, 0.70% for the next $50 million and 0.55% of the Fund’s average daily net assets in excess of $100 million. Prior to April 1, 2003, Dresdner was entitled to receive from Funds Management, as compensation for its sub-advisory services, a monthly fee at the annual rate of 1.00% of the Fund’s average daily net assets up to $100 million, 0.75% for the next $400 million, 0.60% for the next $500 million, and 0.50% of the Fund’s average daily net assets in excess of $1 billion.

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 interests of the Fund to do so. Upon such redemption and subsequent investment in a portfolio of securities, Funds Management (and the corresponding sub-adviser) may receive an investment fee for the management of those assets. If the redeemed assets are invested in one or more Master Portfolios, Funds Management (and the corresponding sub-adviser) does not receive any compensation.

4. DISTRIBUTION FEES

The Trust has adopted a Distribution Plan (the “Plan”) for Class B and C shares of the applicable Funds pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the Class B and C shares and paid to Stephens Inc. (“Stephens”) at a rate of 0.75% of average daily net assets. There are no distribution fees for the Funds’ Class A or Institutional Class shares. The distribution fees paid on behalf of the Funds for the six-months ended March 31, 2003 are disclosed in the Statement of Operations.

5. ADMINISTRATION AND TRANSFER AGENT FEES

Through February 28, 2003, the Trust had entered into an Administration Agreement with Funds Management on behalf of the Funds. Under the Administration Agreement, Funds Management acted as administrator of the Funds and was entitled to receive, on a monthly basis, fees at an annual rate of 0.15% of the average daily net assets of the Funds.

The Trust has also entered into an agreement with Boston Financial Data Services (“BFDS”) as the transfer agent for the Trust. Under the agreement, BFDS was entitled to receive from the Funds a per-account fee plus transaction fees, certain out-of-pocket costs and a complex based fee.

Effective March 1, 2003, the Trust has entered into a new Administration Agreement with the Funds. Under this Agreement, for providing administrative services, which now include paying the Funds’ fees and expenses for services provided by the Funds’ transfer agent and various sub-transfer agents and ominbus account services and record-keepers out of the fees it receives as administrator, Funds Management is entitled to receive an annual fee of 0.33% of the average daily net assets of a Fund’s Class A, Class B and Class C shares and 0.25% of the average daily net assets of a Fund’s Institutional Class shares.

6. SHAREHOLDER SERVICING FEES

The Trust has entered into contracts on behalf of the Funds with numerous shareholder servicing agents, whereby the Funds are charged 0.25% of the average daily net assets for Class A, Class B, and Class C shares, and 0.10% of the average daily net assets for Institutional Class shares of the Diversified Small Cap, Small Cap Growth, Small Cap Opportunities, Small Company Growth, and Small Company Value Funds for these services. No fee is charged for Institutional Class shares of the Diversified Equity, Equity Income, Equity Value, Growth, Growth Equity, Index, International Equity, Large Cap Appreciation, and Large Company Growth Funds.

136

NOTES TO FINANCIAL STATEMENTS STOCK FUNDS

The shareholder servicing fees paid on behalf of the Funds for the six-months ended March 31, 2003 were as follows:

Fund	Class A		Class B		Class C		Institutional Class
Diversified Equity Fund	$	75,219	$	109,286	$	9,173	0
Diversified Small Cap Fund		N/A		N/A		N/A	98,805
Equity Income Fund		160,495		111,413		10,018	0.00
Equity Index Fund		355,101		65,413		N/A	N/A
Equity Value Fund		15,919		27,635		734	0
Growth Fund		149,256		22,173		0	0
Growth Equity Fund		14,285		17,150		2,616	0
Index Fund		N/A		N/A		N/A	0
International Equity Fund		32,354		34,928		2,767	0
Large Cap Appreciation Fund		1,220		1,392		332	0
Large Company Growth Fund		212,588		286,565		37,371	0
Mid Cap Growth Fund		4,919		4,984		590	N/A
SIFE Specialized Financial Services Fund		603,778		25,352		2,174	N/A
Small Cap Growth Fund		95,148		34,640		10,112	29,508
Small Cap Opportunities Fund		N/A		N/A		N/A	149,619
Small Company Growth Fund		N/A		N/A		N/A	159,219
Small Company Value Fund		6,363		6,463		370	6,551
Specialized Health Sciences Fund		14,392		18,993		2,529	N/A
Specialized Technology Fund		18,559		28,527		6,030	N/A

7. OTHER FEES AND TRANSACTIONS WITH AFFILIATES

Effective the first quarter of 2003, PFPC Inc. (“PFPC”) serves as fund accountant for all of the Funds. PFPC is entitled to receive an annual asset based fund complex fee of $20,000, an annual fixed fee from each Fund and is entitled to be reimbursed for all out-of-pocket expenses reasonably incurred in providing these services. Prior to PFPC, Forum Accounting Services, LLC served as fund accountant for all of the Funds, except the SIFE Specialized Financial Services Fund, and was entitled to receive a fixed monthly per fund fee, a basis point fee of 0.0025% of the average daily net assets of the Funds, and was reimbursed for all out-of-pocket expenses reasonably incurred in providing these services. Prior to PFPC serving as fund accountant for the SIFE Specialized Financial Services Fund beginning October 1, 2002, State Street Bank and Trust Co. (“State Street”) served as fund accountant and was entitled to receive an annual based fee of $40,000 from the Fund.

The Trust has entered into a contract on behalf of each Fund with Wells Fargo Bank Minnesota, N.A. (“WFB MN”), whereby WFB MN is responsible for providing custody services for the Funds. Pursuant to the contract, WFB MN is entitled to certain transaction charges plus a monthly fee for custody services at the annual rate of 0.02% of the average daily net assets of each Fund except for the International Equity Fund, Specialized Health Sciences Fund, and Specialized Technology Fund, for which WFB MN is entitled to receive 0.10%, 0.07%, and 0.07% respectively, of the average daily net assets of the Funds. Prior to September 1, 2002, WFB MN received a fee from the International Equity Fund at an annual rate of 0.25% of the average daily net assets of the Fund for providing those services. In addition, WFB MN does not receive a custodial fee for any Fund that invests its assets in one or more Master Portfolios. Prior to October 1, 2002, State Street provided custody services for the SIFE Specialized Financial Services Fund and was entitled to receive an annual fee of 0.01% of the Fund’s average daily net assets, with a minimum monthly charge of $2,000.

137

STOCK FUNDS NOTES TO FINANCIAL STATEMENTS

8. 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, 2003, were waived by Funds Management.

Fund	Fees Waived by Funds Management
Diversified Equity Fund	$	892,329
Diversified Small Cap Fund		97,653
Equity Income Fund		598,454
Equity Index Fund		593,597
Equity Value Fund		207,134
Growth Fund		399,707
Growth Equity Fund		305,810
Index Fund		521,970
International Equity Fund		419,986
Large Cap Appreciation Fund		136,463
Large Company Growth Fund		1,145,253
Mid Cap Growth Fund		53,652
SIFE Specialized Financial Services Fund		641,999
Small Cap Growth Fund		377,518
Small Cap Opportunities Fund		93,641
Small Company Growth Fund		97,479
Small Company Value Fund		0
Specialized Health Sciences Fund		69,148
Specialized Technology Fund		147,267

138

NOTES TO FINANCIAL STATEMENTS STOCK FUNDS

9. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date) for each Fund for the six-months ended March 31, 2003, were as follows:

AGGREGATE PURCHASES AND SALES
Fund	Purchases at Cost		Sales Proceeds
Diversified Equity Fund*	$	118,911,137	$	195,154,788
Diversified Small Cap Fund*		175,050,287		143,468,506
Equity Income Fund*		132,510,593		216,860,675
Equity Index Fund		3,787,798		12,014,507
Equity Value Fund		11,054,358		16,899,554
Growth Fund		64,315,353		104,433,486
Growth Equity Fund*		156,719,816		104,223,353
Index Fund*		39,583,308		380,624,499
International Equity Fund		122,853,974		126,901,628
Large Cap Appreciation Fund*		6,724,019		4,844,675
Large Company Growth Fund*		214,231,509		76,978,648
Mid Cap Growth Fund		12,235,034		12,458,166
SIFE Specialized Financial Services Fund		1,199,621,336		813,369,170
Small Cap Growth Fund		192,648,994		218,385,742
Small Cap Opportunities Fund		156,002,856		208,067,460
Small Company Growth Fund*		528,673,984		372,928,591
Small Company Value Fund*		118,938,790		67,232,673
Specialized Health Sciences Fund		22,671,321		24,385,414
Specialized Technology Fund		61,491,605		55,996,271

* These Funds do not hold investment securities directly. The Funds seek to achieve their investment objective by investing all of their investable assets in one or more Master Portfolios. Purchases and sales for the Funds normally would be based on the purchases and sales of a Fund’s investment in a Master Portfolio rather than the underlying securities in that Master Portfolio. Since the Fund has an indirect interest in the securities held in the Master Portfolio, the purchases and sales disclosed are 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.

10. BANK BORROWINGS

All of the funds in the Wells Fargo Funds Trust and the Wells Fargo Variable Trust (excluding the money market funds) share in a revolving Credit Agreement with The Bank of New York, whereby the funds are permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. The agreement permits borrowings of up to $225 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, 2003.

139

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

DISCIPLINED GROWTH PORTFOLIO

Shares	Security Name	Value
Common Stock – 97.39%
Apparel Manufacturers – 2.51%
37,820	Coach Incorporated†	$	1,449,641
Automotive Dealers And Gasoline Service Stations – 2.01%
16,891	Autozone Incorporated†		1,160,581
Building Construction – General Contractors & Operative Builders – 2.05%
21,900	Centex Corporation		1,190,484
Building Materials, Hardware, Garden Supply, & Mobile Home Dealers – 2.09%
29,480	Lowe's Companies Incorporated		1,203,374
Business Services – 9.22%
119,640	Citrix Systems Incorporated†		1,574,462
19,790	Electronic Arts Incorporated†		1,160,486
25,563	Greenpoint Financial Corporation		1,145,477
132,000	Oracle Corporation†		1,432,068
			5,312,493
Chemicals And Allied Products – 4.63%
25,926	Forest Laboratories Incorporated†		1,399,226
44,300	Mylan Laboratories†		1,273,625
			2,672,851
Communications – 5.56%
109,280	Nextel Communications Incorporated†		1,463,259
148,402	Sprint Corporation (Fon Group)		1,743,724
			3,206,983
Domestic Depository Institution – 2.64%
21,200	Golden West Financial Corporation		1,524,916
Educational Services – 2.18%
25,662	Career Education Corporation†		1,255,385
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 4.32%
37,936	Energizer Holdings Incorporated†		966,989
42,300	Qualcomm Incorporated		1,525,338
			2,492,327
Electric, Gas & Sanitary Services – 2.54%
29,060	Exelon Corporation		1,464,915
Engineering, Accounting, Research Management & Related Services – 2.36%
35,552	Dun & Bradstreet Corporation†		1,359,864
Fabricated Metal Products, Except Machinery And Transportation Equipment – 1.66%
22,350	Fortune Brands Incorporated		958,145

140

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

DISCIPLINED GROWTH PORTFOLIO

Shares	Security Name	Value
Food – 2.43%
32,670	Dean Foods Company†	$	1,401,870
Health Services – 2.75%
38,410	HCA Incorporated		1,588,638
Home Furniture, Furnishings, And Equipment Stores – 2.00%
42,700	Best Buy Company Incorporated†		1,151,619
Industrial & Commercial Machinery & Computer Equipment – 4.72%
15,000	International Game Technology†		1,228,500
22,330	Lexmark International Incorporated†		1,494,994
			2,723,494
Insurance Carriers – 7.98%
46,748	Advance PCS†		1,324,838
44,960	Fidelity National Financial Incorporated		1,535,384
19,033	Unitedhealth Group Incorporated		1,744,755
			4,604,977
Investment & Miscellaneous Financial Services – 2.51%
53,490	T Rowe Price Group Incorporated		1,450,595
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 3.73%
44,100	St Jude Medical Incorporated		2,149,875
Membership Organizations – 1.79%
49,950	Rockwell Automation Incorporated		1,033,965
Miscellaneous Retail – 2.49%
78,480	Staples Incorporated†		1,438,538
Non-Depository Credit Institutions – 8.53%
23,095	Countrywide Financial		1,327,963
27,550	FNMA		1,800,393
16,097	SLM Corporation		1,785,479
			4,913,834
Oil And Gas Extraction – 2.54%
48,940	Occidental Petroleum Corporation		1,466,242
Petroleum Refining & Related Industries – 2.39%
39,430	Exxon Mobil Corporation		1,378,079
Printing, Publishing & Allied – 2.52%
32,320	Tribune Company		1,454,723
Transportation Equipment – 4.72%
28,468	Harley-Davidson Incorporated		1,130,463
31,655	Paccar Incorporated		1,591,297
			2,721,760

141

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

DISCIPLINED GROWTH PORTFOLIO

Shares	Security Name	Value
Wholesale Trade – Nondurable Goods – 2.52%
58,165	Mckesson Corporation	$	1,450,053
Total Common Stock (Cost $52,884,363)			56,180,221

Principal					Interest Rate	Maturity Date
Short-Term Investments – 2.54%
Repurchase Agreement – 2.54%
$	1,467,105.34	Credit Suisse First Boston 137 – 102% Collateralized by US Government Securities			1.37%	04/01/2003		1,467,105
Total Short-Term Investments (Cost $1,467,105)								1,467,105
Total Investments in Securities (Cost $54,351,468)*			99.93	%			$	57,647,326
Other Assets And Liabilities, Net			0.07					38,551
Total Net Assets			100.00	%			$	57,685,877

† Non income producing securities

* Cost for federal income tax purposes is substantially the same as for reporting purposes and net unrealized appreciation consists of:

Gross Unrealized Appreciation	$	5,624,734
Gross Unrealized Depreciation		(2,328,876	)
Net Unrealized Appreciation	$	3,295,858

The accompanying notes are an integral part of these financial statements.

142

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

EQUITY INCOME PORTFOLIO

Shares	Security Name	Value
Common Stock – 99.57%
Chemicals & Allied Products – 14.40%
322,000	Abbott Laboratories Incorporated	$	12,110,420
86,327	Air Products & Chemicals		3,576,527
1,161,669	Du Pont (E.I.) De Nemours		45,142,457
790,300	Merck & Co Incorporated		43,292,634
1,144,900	Pfizer Incorporated		35,675,084
590,500	Procter & Gamble Company		52,584,025
1,297,011	Rohm & Haas Company		38,624,988
			231,006,135
Communications – 3.84%
359,360	American Telephone & Telegraph Corporation		5,821,632
490,100	SBC Communications Incorporated		9,831,406
1,300,796	Verizon Communications		45,983,139
			61,636,177
Depository Institutions – 10.37%
456,400	Bank Of America Corporation		30,505,776
780,700	Citigroup Incorporated		26,895,115
2,143,625	JP Morgan Chase & Company		50,825,349
3,067,201	US Bancorporation		58,215,475
			166,441,715
Eating & Drinking Places – 2.15%
2,389,590	Mcdonald’s Corporation		34,553,471
Electric, Gas, & Sanitary Services – 4.42%
20,818	Dominion Resources Incorporated		1,152,693
97,500	Duke Energy Corporation		1,417,650
218,780	FirstEnergy Corporation		6,891,570
1,448,100	Public Service Enterprise		53,130,789
471,924	TXU Corporation		8,423,843
			71,016,545
Electronic & Other Electrical Equipment & Components, Except Computer Equipment – 5.50%
1,028,000	Emerson Electric Company		46,619,800
1,326,034	General Electric Company		33,813,867
950,000	Motorola Incorporated		7,847,000
			88,280,667
Fabricated Metal Products, Except Machinery & Transportation Equipment – 4.00%
1,498,100	Fortune Brands Incorporated		64,223,547
Food & Kindred Products – 7.33%
1,643,740	Pepsico Incorporated		65,749,600
2,778,125	Sara Lee Corporation		51,950,938
			117,700,538

143

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

EQUITY INCOME PORTFOLIO

Shares	Security Name	Value
General Merchandise Stores – 5.71%
1,665,050	May Department Stores Company	$	33,117,844
750,530	Sears Roebuck & Company		18,125,300
1,383,200	Target Corporation		40,472,432
			91,715,576
Industrial & Commercial Machinery & Computer Equipment – 11.73%
3,551,550	Hewlett-Packard Company		55,226,602
911,000	IBM Corporation		71,449,730
474,758	3M Company		61,732,783
			188,409,115
Insurance Carriers – 7.75%
3,605,583	Aegon NV		27,222,152
654,736	American International Group		32,376,695
563,900	Metropolitan Life Incorporated		14,875,682
1,569,100	St Paul Companies Incorporated		49,897,380
			124,371,909
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 1.29%
601,362	Becton Dickinson & Company		20,710,907
Motion Pictures – 1.47%
1,390,800	Walt Disney Company		23,671,416
Non-Depository Credit Institutions – 2.48%
1,199,700	American Express Company		39,866,031
Oil & Gas Extraction – 0.89%
375,500	Schlumberger Limited		14,272,755
Petroleum Refining & Related Industries – 9.40%
922,928	BP Plc		35,615,791
494,850	ChevronTexaco Corporation		31,992,053
1,774,870	Exxon Mobil Corporation		62,031,707
522,604	Royal Dutch Petroleum Company		21,296,113
			150,935,664
Tobacco Products – 2.36%
1,265,150	Altria Group Incorporated		37,903,894
Transportation Equipment – 1.58%
1,186,800	Honeywell International Incorporated		25,350,048
Wholesale Trade – Durable Goods – 2.90%
805,700	Johnson & Johnson		46,625,859
Total Common Stock ($1,561,060,034)			1,598,691,969

144

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

EQUITY INCOME PORTFOLIO

Principal					Interest Rate		Maturity Date	Value
Short-Term Investment – 0.26%
Repurchase Agreement – 0.26%
$	4,095,696	Credit Swisse First Boston – 102% collateralized by US Government Securities			1.37	%	04/01/2003	$	4,095,696
Total Short-Term Investment (Cost $4,095,696)
Total Investments In Securities (Cost $1,565,155,730)*			99.83	%				$	1,602,787,665
Other Assets And Liabilities, Net			0.17						2,786,592
Total Net Assets			100.00	%				$	1,605,574,257

† Non income producing securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized appreciation consist of:

Gross Unrealized Appreciation	$	281,204,768
Gross Unrealized Depreciation		(243,572,833	)
Net Unrealized Appreciation	$	37,631,935

The accompanying notes are an integral part of these financial statements.

145

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Common Stock – 97.27%
Aerospace, Defense – 2.93%
1,022,042	Exxon Mobil Corporation	$	35,720,368
Amusement And Recreation Services – 0.05%
16,979	Harrah's Entertainment†		606,150
Apartments – 0.04%
14,247	Apartment Investment & Management Company†		519,731
Apparel & Other Finished Products Made From Fabrics & Similar Materials – 1.78%
256,705	International Business Machines		20,133,373
19,572	Jones Apparel Group Incorporated†		536,860
16,227	Liz Claiborne, Incorporated		501,739
16,503	VF Corporation		621,007
			21,792,979
Apparel And Accessory Stores – 0.51%
134,254	Gap, Incorporated		1,945,340
51,214	Kohls Corporation†		2,897,687
79,458	Limited Brands Incorporated		1,022,624
20,571	Nordstrom, Incorporated†		333,250
			6,198,901
Automotive Dealers And Gasoline Service Stations – 0.13%
44,029	Autonation Incorporated†		561,370
14,793	Autozone Incorporated†		1,016,426
			1,577,796
Automotive Repair, Services, And Parking – 0.03%
9,495	Ryder Systems, Incorporated		194,742
15,537	United States Steel Corporation		152,729
			347,471
Building Construction-General Contractors & Operative Builders – 0.37%
9,375	Centex Corporation		509,625
7,272	KB Home		330,512
9,296	Pulte Homes Incorporated		466,193
127,639	The Boeing Company		3,198,633
			4,504,963
Building Materials, Hardware, Garden Supply Mobile Home Dealers – 1.15%
353,256	Home Depot Incorporated		8,605,316
118,616	Lowe's Companies Incorporated		4,841,905
22,764	Sherwin Williams Company		601,653
			14,048,874

146

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Business Services – 7.34%
35,097	Adobe Systems Incorporated	$	1,082,041
678,964	AOL Time Warner Incorporated†		7,373,549
17,224	Autodesk Incorporated		262,838
91,071	Automatic Data Processing		2,804,076
35,434	BMC Software Incorporated†		534,699
156,462	Cendant Corporation†		1,987,067
25,975	Citrix Systems Incorporated†		341,831
87,291	Computer Associates International		1,192,395
28,437	Computer Sciences Corporation†		925,624
57,422	Compuware Corporation†		194,661
77,270	Concord EFS Incorporated†		726,338
26,360	Convergys Corporation†		347,952
9,375	Deluxe Corporation		376,219
46,892	Ebay Incorporated†		3,999,419
21,737	Electronic Arts Incorporated†		1,274,658
114,241	First Data Corporation		4,228,059
29,063	Fiserv Incorporated†		914,903
58,574	Interpublic Group Companies Incorporated		544,738
31,243	Intuit Incorporated†		1,162,240
12,827	Mercury Interactive Corporation†		380,705
1,625,417	Microsoft Corporation		39,351,346
14,818	NCR Corporation†		271,762
55,932	Novell Incorporated†		120,254
28,564	Omnicom Group Incorporated		1,547,312
800,318	Oracle Corporation†		8,682,650
39,883	Parametric Technology†		86,546
47,539	Peoplesoft Incorporated†		727,347
26,321	Robert Half International Incorporated†		350,333
73,598	Siebel Systems Incorporated†		589,520
485,269	Sun Microsystems Incorporated†		1,581,977
43,008	Sungard Data Systems Incorporated†		916,070
22,436	Symantec Corporation†		879,042
16,885	TMP Worldwide Incorporated†		181,176
49,546	Unisys Corporation†		458,796
62,517	Veritas Software Corporation†		1,099,049
89,750	Yahoo Incorporated†		2,155,795
			89,652,987
Chemicals And Allied Products – 13.11%
237,465	Abbott Laboratories Incorporated		8,931,059
34,513	Air Products & Chemicals		1,429,874
8,871	Alberto-Culver Company		437,163
195,490	Amgen Incorporated†		11,250,450
35,744	Avon Products Incorporated		2,039,195
22,641	Biogen Incorporated†		678,324
294,214	Bristol-Myers Squibb Company		6,216,742

147

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Chemicals And Allied Products (continued)
28,400	Chiron Corporation†	$	1,065,000
33,418	Clorox Company		1,542,909
81,755	Colgate-Palmolive Company		4,450,742
138,386	Dow Chemical Company		3,820,837
151,085	Du Pont De Nemours & Company, Ei†		5,871,163
11,743	Eastman Chemical Company		340,430
19,767	Ecolab Incorporated		975,106
55,135	Forest Laboratories Incorporated†		2,975,636
32,589	Genzyme Corporation†		1,187,869
158,605	Gillette Company		4,907,239
7,623	Great Lakes Chemical Corporation		169,231
14,329	International Flavors & Fragrances		445,489
36,567	King Pharmaceuticals Incorporated†		436,244
170,627	Lilliy (Eli), and Company		9,751,333
38,203	Medimmune Incorporated†		1,254,204
341,074	Merck & Company Incorporated		18,684,034
935,962	Pfizer Incorporated		29,164,576
196,379	Pharmacia Corporation		8,503,211
25,747	PPG Industries, Incorporated		1,160,675
24,562	Praxair Incorporated		1,384,069
196,378	Procter & Gamble Company		17,487,461
33,582	Rohm & Haas Company		1,000,072
222,764	Schering-Plough Corporation		3,971,882
10,889	Sigma Aldrich Corporation		484,452
16,243	Watson Pharmaceuticals†		467,311
201,351	Wyeth		7,615,095
			160,099,077
Communications – 4.74%
47,242	Alltel Corporation		2,114,551
117,012	AT&T Corporation		1,895,594
411,473	AT&T Wireless Services†		2,715,722
56,609	Avaya Incorporated†		115,482
282,663	Bellsouth Corporation		6,125,307
21,660	CenturyTel Incorporated		597,816
42,866	Citizens Communications†		427,803
93,066	Clear Channel Comm†		3,156,799
350,559	Comcast Corporation†		10,022,482
146,286	Nextel Communications Incorporated†		1,958,770
257,505	Qwest Communications International†		898,692
504,300	SBC Communications Incorporated		10,116,258
135,873	Sprint Corporation (FON Group)		1,596,508
151,749	Sprint Corporation (PCS Group)†		661,626
34,798	Univision Communications†		852,899
415,531	Verizon Communications		14,689,021
			57,945,330

148

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Construction Special Trade Contractors – 0.04%
27,264	Rockwell Collins	$	500,840
Depository Institutions – 9.29%
53,983	Amsouth Bancorporation		1,073,182
228,192	Bank of America Corporation		15,252,353
116,391	Bank of New York Company Incorporated		2,386,016
176,804	Bank One Corporation		6,120,954
71,531	BB&T Corporation		2,248,219
34,325	Charter One Financial Incorporated		949,430
780,810	Citigroup Incorporated		26,898,905
26,536	Comerica Incorporated		1,005,184
87,759	Fifth Third Bancorporation		4,400,236
19,071	First Tennessee National Corporation		757,309
159,419	FleetBoston Financial Corporation		3,806,926
23,308	Golden West Financial Corporation		1,676,544
35,776	Huntington Bancshares Incorporated		665,076
303,247	JP Morgan Chase & Company		7,189,986
33,164	Marshall & Ilsley Corporation		847,672
65,455	Mellon Financial Corporation		1,391,573
92,878	National City Corporation		2,586,652
24,529	North Fork Bancorporation		722,379
33,555	Northern Trust Corporation		1,021,750
43,136	PNC Financial Services Group		1,828,104
33,587	Regions Financial Corporation†		1,088,219
52,471	Southtrust Corporation		1,339,585
50,451	State Street Corporation		1,595,765
42,889	Suntrust Banks Incorporated		2,258,106
46,263	Synovus Financial Corporation		827,645
30,093	Union Planters Corporation		791,145
290,952	US Bancorporation		5,522,269
143,789	Washington Mutual Incorporated		5,071,438
256,978	Wells Fargo & Company‡		11,561,440
13,809	Zions Bancorporation		590,749
			113,474,811
Eating And Drinking Places – 0.40%
25,962	Darden Restaurants Incorporated		463,422
192,794	Mcdonald’s Corporation		2,787,801
17,528	Wendy’s International Incorporated		482,195
44,888	Yum! Brands Incorporated†		1,092,125
			4,825,543
Educational Services – 0.11%
26,477	Apollo Group Incorporated†		1,321,202
Electric Distribution, Transmission – 0.23%
129,953	Honeywell International, Incorporated		2,775,796

149

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Electric, Gas, And Sanitary Services – 2.63%
82,597	AES Corporation†	$	299,001
19,090	Allegheny Energy Incorporated†		118,549
29,947	Allied Waste Industries†		239,277
24,167	Ameren Corporation		943,721
59,059	American Electric Power Company, Incorporated		1,349,497
57,413	Calpine Corporation†		189,463
46,225	Centerpoint Energy Incorporated		325,886
25,566	Cinergy Corporation		860,296
21,885	CMS Energy Corporation†		96,513
25,021	Constellation Energy		693,832
25,435	DTE Energy Company		983,063
135,422	Duke Energy Corporation†		1,969,036
56,406	Dynegy Incorporated†		147,220
49,486	Edison International†		677,463
90,975	El Paso Corporation		550,399
33,721	Entergy Corporation		1,623,666
49,057	Exelon Corporation		2,472,963
45,207	FirstEnergy Corporation		1,424,021
27,721	FPL Group, Incorporated		1,633,599
23,760	Keyspan Corporation		766,260
18,520	Kinder Morgan Incorporated		833,400
61,349	Mirant Corporation†		98,158
6,685	Nicor Incorporated		182,634
37,798	NiSource Incorporated		687,924
5,422	Peoples Energy Corporation		193,945
61,906	PG&E Corporation†		832,636
13,731	Pinnacle West Cap Corporation		456,418
24,978	PPL Corporation		889,467
36,026	Progress Energy Incorporated		1,410,418
33,783	Public Service Enterprise		1,239,498
31,299	Sempra Energy		781,223
108,369	Southern Company†		3,082,014
26,678	Teco Energy Incorporated		283,587
48,928	TXU Corporation		873,365
90,368	Waste Management Incorporated		1,913,994
78,475	Williams Companies Incorporated		359,416
60,560	Xcel Energy Incorporated		775,774
			32,257,596
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 7.21%
121,772	ADC Telecommunications†		250,850
52,169	Advanced Micro Devices†		322,404
12,247	Allegheny Technologies, Incorporated		35,516
58,102	Altera Corporation†		786,701
29,787	American Power Conversion†		424,167
55,322	Analog Devices Incorporated†		1,521,355

150

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Electronic And Other Electrical Equipment & Components, Except Computer Equipment (continued)
14,935	Andrew Corporation†	$	82,143
46,122	Applied Micro Circuits†		150,358
41,900	Broadcom Corporation†		517,465
65,840	CIENA Corporation†		287,721
28,514	Comverse Technology Incorporated†		322,493
14,163	Cooper Industries, Incorporated		505,760
72,359	Electronic Data Systems Corporation		1,273,518
63,930	Emerson Electric Company		2,899,226
1,511,452	General Electric Company		38,542,026
1,006,261	Intel Corporation		16,381,929
214,974	JDS Uniphase Corporation†		612,676
47,519	Linear Technology Corporation		1,466,912
56,480	LSI Logic Corporation†		255,290
594,058	Lucent Technologies Incorporated†		873,265
49,077	Maxim Integrated Products		1,772,661
11,853	Maytag Corporation		225,563
92,286	Micron Technology Incorporated†		751,208
29,130	Molex Incorporated		625,712
349,490	Motorola Incorporated		2,886,787
27,595	National Semiconductor†		470,219
51,540	Network Appliance Incorporated†		576,733
22,718	Novellus Systems Incorporated†		619,520
23,946	NVIDIA Corporation†		307,706
25,431	PMC – Sierra Incorporated†		151,314
12,138	Power-One Incorporated†		53,407
14,251	Qlogic Corporation†		529,282
119,824	Qualcomm Incorporated		4,320,853
77,364	Sanmina-SCI Corporation†		312,551
23,218	Scientific Atlanta, Incorporated		319,015
62,578	Tellabs Incorporated†		362,327
262,919	Texas Instruments Incorporated		4,303,984
8,854	Thomas & Betts Corporation†		125,550
10,358	Whirlpool Corporation		507,853
51,248	Xilinx Incorporated†		1,199,716
			87,933,736
Engineering, Accounting, Research Management & Related Services – 1.14%
59,266	3M Company		7,706,358
12,203	Fluor Corporation – New		410,997
66,284	Halliburton Company		1,374,067
39,704	Monsanto Company		651,146
22,950	Moody’s Corporation		1,060,979
57,155	Paychex Incorporated		1,570,048
15,975	Quest Diagnostics Incorporated†		953,548
17,923	Quintiles Transnational†		217,944
			13,945,087

151

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Environmental Control – 0.10%
32,446	Consolidated Edison Company, Incorporated†	$	1,248,198
Fabricated Metal Products, Except Machinery And Transportation Equipment – 0.76%
8,631	Ball Corporation		480,747
9,042	Crane Company		157,512
22,669	Fortune Brands Incorporated		971,820
46,693	Illinois Tool Works		2,715,198
69,216	Lockheed Martin Corporation		3,291,221
74,729	Masco Corporation		1,391,454
8,831	Snap-On Incorporated†		218,656
			9,226,608
Financial Services – 0.58%
206,615	Wachovia Corporation		7,039,373
Food And Kindred Products – 4.11%
130,002	Anheuser-Busch Companies, Incorporated		6,059,393
98,063	Archer-Daniels-Midland Company		1,059,080
62,334	Campbell Soup Company†		1,309,014
68,255	Coca-Cola Enterprises Incorporated		1,275,686
376,548	Coca-Cola Company		15,242,663
81,558	Conagra Foods Incorporated		1,637,685
5,512	Coors (Adolph) Company Class B		267,332
56,011	General Mills Incorporated		2,551,301
53,368	Heinz (H J ) Company		1,558,346
16,586	Hercules Incorporated†		144,298
20,678	Hershey Foods Corporation		1,295,683
62,008	Kellogg Company		1,900,545
21,279	McCormick & Company, Incorporated		513,675
42,597	Pepsi Bottling Group Incorporated		763,764
262,318	Pepsico Incorporated		10,492,720
118,882	Sara Lee Corporation		2,223,093
34,205	Wrigley (Wm ) Jr Company		1,932,583
			50,226,861
Food Stores – 0.36%
57,588	Albertsons Incorporated		1,085,534
115,915	Kroger Company†		1,524,282
58,873	Starbucks Corporation†		1,516,568
21,388	Winn-Dixie Stores Incorporated		282,749
			4,409,133
Forestry – 0.13%
33,259	Weyerhaeuser Company		1,590,778
Furniture And Fixtures – 0.21%
13,516	Johnson Controls Incorporated		979,099

152

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Furniture And Fixtures (continued)
29,561	Leggett & Platt Incorporated	$	540,375
40,606	Newell Rubbermaid Incorporated		1,151,180
			2,670,654
General Merchandise Stores – 3.42%
17,641	Big Lots Incorporated†		198,461
12,860	Dillards Incorporated		166,151
50,624	Dollar General Corporation		618,119
26,121	Family Dollar Stores Incorporated		806,616
28,889	Federated Dept Stores†		809,470
40,752	JC Penney Company Incorporated (Holding)		800,369
43,781	May Department Stores Company		870,804
48,044	Sears Roebuck & Company		1,160,263
79,797	TJX Companies Incorporated		1,404,427
670,430	Wal-Mart Stores Incorporated		34,882,473
			41,717,153
Health Services – 0.44%
77,947	HCA Incorporated		3,223,888
36,252	Health Management Association		688,788
14,634	Manor Care Incorporated†		281,412
71,955	Tenet Healthcare Corporation†		1,201,649
			5,395,737
Heavy Construction Other Than Building Construction Contracts – 0.00%
9,685	Mcdermott International Incorporated		28,087
Holding And Other Investment Offices – 0.34%
62,528	Equity Office Properties		1,591,338
41,139	Equity Residential		990,216
28,078	Plum Creek Timber Co		606,204
28,013	Simon Property Group Incorporated		1,003,706
			4,191,464
Home Furniture, Furnishings, And Equipment Stores – 0.29%
44,661	Bed Bath & Beyond Incorporated†		1,542,591
48,866	Best Buy Company Incorporated†		1,317,916
31,976	Circuit City Stores		166,275
25,582	Radioshack Corporation		570,223
			3,597,005
Hotels, Rooming Houses, Camps, & Other Lodge Places – 0.21%
57,155	Hilton Hotels Corporation		663,570
35,511	Marriott International Incorporated		1,129,605
30,338	Starwood Hotels & Resorts		721,740
			2,514,915

153

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Industrial & Commercial Machinery & Computer Equipment – 4.74%
11,006	American Standard Companies†	$	756,883
54,752	Apple Computer Incorporated†		774,193
250,662	Applied Materials Incorporated†		3,153,328
51,170	Baker Hughes Incorporated		1,531,518
11,938	Black & Decker Corporation		416,159
52,277	Caterpillar Incorporated		2,572,028
1,080,210	Cisco Systems Incorporated†		13,934,709
6,303	Cummins Incorporated		155,054
36,340	Deere & Company		1,426,708
391,751	Dell Computer Corporation†		10,698,720
30,730	Dover Corporation		744,281
10,708	Eaton Corporation		749,025
334,122	EMC Corporation†		2,415,702
49,219	Gateway Incorporated†		116,157
463,625	Hewlett-Packard Company		7,209,369
25,713	Ingersoll-Rand Company – Class A†		992,265
12,902	International Game Technology†		1,056,674
30,101	Jabil Circuit Incorporated†		526,767
19,127	Lexmark International Incorporated†		1,280,553
18,678	Pall Corporation		373,560
17,940	Parker Hannifina Corporation		694,996
35,927	Pitney Bowes, Incorporated†		1,146,790
125,493	Solectron Corporation†		378,988
13,406	Stanley Works		321,610
35,020	Symbol Technologies Incorporated		301,522
71,443	United Technologies Corporation		4,127,977
			57,855,536
Information, Business Services – 0.11%
38,792	ITT Hartford Group Incorporated		1,368,970
Insurance Agents, Brokers And Service – 0.38%
47,049	AON Corporation		972,973
24,644	Humana Incorporated†		236,582
81,573	Marsh & Mclennan Companies Incorporated		3,477,458
			4,687,013
Insurance Carriers – 4.88%
39,893	Ace Limited†		1,154,902
22,865	Aetna Incorporated – New		1,127,245
78,401	AFLAC Incorporated		2,512,752
106,770	Allstate Corporation		3,541,560
16,096	Ambac Financial Group Incorporated		813,170
396,215	American International Group		19,592,832
21,484	Anthem Incorporated†		1,423,315
25,981	Chubb Corporation		1,151,478
21,202	Cigna Corporation		969,355

154

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Insurance Carriers (continued)
24,528	Cincinnati Financial Corporation	$	860,197
21,794	Jefferson-Pilot Corporation		838,633
43,761	John Hancock Financial		1,215,681
26,892	Lincoln National Corporation		752,976
28,166	Loews Corporation		1,122,133
22,040	Mbia Incorporated		851,626
106,364	MetLife Incorporated		2,805,882
15,261	MGIC Investment Corporation		599,299
48,645	Principal Financial Group		1,320,225
33,076	Progressive Corporation		1,961,738
85,988	Prudential Financial Incorporated		2,515,149
20,992	Safeco Corporation		734,090
34,400	St Paul Companies Incorporated		1,093,920
17,988	Torchmark Corporation		643,970
152,810	Travelers Prop Casualty – B†		2,156,149
46,242	Unitedhealth Group Incorporated		4,239,004
36,681	Unumprovident Corporation		359,474
22,594	Wellpoint Health Networks†		1,734,090
20,632	XL Capital Limited – Class A		1,460,333
			59,551,178
Lumber & Wood Products, Except Furniture – 0.05%
37,981	Georgia-Pacific Group		527,936
15,884	Louisiana-Pacific Corporation†		125,960
			653,896
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 2.69%
70,935	Agilent Technologies Incorporated†		932,796
31,813	Applera Corporation PE Biosystems		503,600
7,840	Bard (C R ) Incorporated		494,390
8,102	Bausch & Lomb Incorporated		266,475
90,113	Baxter International Incorporated		1,679,706
38,686	Becton Dickinson & Company		1,332,346
39,331	Biomet Incorporated		1,205,495
61,946	Boston Scientific Corporation†		2,524,919
23,149	Danaher Corporation		1,522,277
44,316	Eastman Kodak Company		1,311,754
46,605	Guidant Corporation		1,687,101
37,117	IMS Health Incorporated		579,396
28,889	KLA-Tencor Corporation†		1,038,328
185,231	Medtronic Incorporated		8,357,623
7,350	Millipore Corporation		240,345
19,190	Perkinelmer Incorporated		170,599
61,649	Raytheon Company		1,748,982
26,969	St Jude Medical Incorporated†		1,314,739
30,067	Stryker Corporation		2,064,100

155

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods (continued)
13,204	Tektronix Incorporated	$	226,449
27,807	Teradyne Incorporated†		323,673
24,836	Thermo Electron Corporation†		449,532
19,615	Waters Corporation†		415,054
111,683	Xerox Corporation†		971,642
29,623	Zimmer Holdings Incorporated†		1,440,566
			32,801,887
Membership Organizations – 0.58%
19,658	Allergan Incorporated		1,340,872
16,678	Avery Dennison Corporation		978,498
21,608	Equifax, Incorporated		431,944
28,200	Rockwell Automation, Incorporated		583,740
88,430	Schlumberger Limited, Curacao		3,361,224
11,593	Sunoco, Incorporated		423,957
			7,120,235
Metal Mining – 0.20%
22,007	Freeport-Mcmoran C & G		375,219
61,014	Newmont Mining Corporation		1,595,516
13,503	Phelps Dodge Corporation		438,578
			2,409,313
Mining & Quarrying of Nonmetal – 0.04%
15,419	Vulcan Materials Company		466,116
Miscellaneous Manufacturing Industries – 0.52%
26,302	Hasbro Incorporated		365,335
66,413	Mattel Incorporated		1,494,293
22,047	Tiffany & Company		551,175
303,184	Tyco International Limited		3,898,946
			6,309,749
Miscellaneous Retail – 0.84%
69,231	Costco Wholesale Corporation†		2,079,007
59,683	CVS Corporation		1,423,440
46,867	Office Depot Incorporated†		554,437
71,893	Staples Incorporated†		1,317,799
32,267	Toys R Us Incorporated†		270,074
155,671	Walgreen Company		4,589,181
			10,233,938
Motion Pictures – 0.43%
310,212	Walt Disney Company		5,279,808
Motor Freight Transportation & Warehousing – 0.80%
170,700	United Parcel Service, Incorporated		9,729,900

156

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Non-Depository Credit Institutions – 2.46%
199,630	American Express Company	$	6,633,705
33,699	Capital One Financial		1,011,307
19,195	Countrywide Financial		1,103,713
105,669	FHLMC		5,611,024
151,129	FNMA		9,876,280
194,063	MBNA Corporation		2,920,648
43,902	Providian Financial Corporation		287,997
23,320	SLM Corporation		2,586,654
			30,031,328
Oil And Gas – 0.86%
162,240	ChevronTexaco Corporation		10,488,816
Oil And Gas Extraction – 1.02%
37,762	Anadarko Petroleum Corporation		1,718,171
24,281	Apache Corporation		1,499,109
23,967	BJ Services Company†		824,225
30,580	Burlington Resources Incorporated		1,458,972
23,795	Devon Energy Corporation		1,147,395
17,548	EOG Resources Incorporated		694,199
15,246	Kerr-Mcgee Corporation		619,140
21,984	Nabors Industries Limited†		876,502
20,328	Noble Corporation†		638,706
57,403	Occidental Petroleum Corporation		1,719,794
14,208	Rowan Companies Incorporated†		279,329
48,485	Transocean Incorporated		991,518
			12,467,060
Paper And Allied Products – 0.65%
8,041	Bemis Company Incorporated		338,204
8,853	Boise Cascade Corporation		193,438
72,725	International Paper Company		2,458,105
78,123	Kimberly-Clark Corporation		3,551,472
30,400	Meadwestvaco Corporation		692,512
24,069	Pactiv Corporation†		488,601
8,158	Temple Inland, Incorporated		305,109
			8,027,441
Personal Services – 0.50%
25,865	Cintas Corporation†		850,959
27,135	H & R Block Incorporated		1,158,393
138,032	Target Corporation		4,038,816
			6,048,168
Petroleum Refining And Related Industries – 0.61%
13,548	Amerada Hess Corporation		599,635
10,366	Ashland Incorporated		307,559

157

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Petroleum Refining And Related Industries (continued)
102,802	Conocophillips	$	5,510,187
39,171	Unocal Corporation		1,030,589
			7,447,970
Primary Metal Industries – 0.29%
128,334	Alcoa Incorporated		2,487,113
19,409	Engelhard Corporation		415,741
11,873	Nucor Corporation		453,192
13,045	Worthington Industries		155,627
			3,511,673
Printing, Publishing, And Allied Industries – 1.57%
10,002	American Greetings†		131,026
12,442	Dow Jones & Company Incorporated		440,944
40,595	Gannett Company Incorporated		2,859,106
12,395	Knight Ridder Incorporated		725,108
29,436	McGraw Hill, Incorporated		1,636,347
7,559	Meredith Corporation		288,603
22,984	New York Times Company		991,760
17,212	RR Donnelley & Sons Company		315,324
46,294	Tribune Company (New)		2,083,693
267,490	Viacom Incorporated†		9,768,735
			19,240,646
Railroad Transportation – 0.47%
56,942	Burlington No Santa Fe		1,417,856
32,608	CSX Corporation		929,980
59,093	Norfolk Southern Corporation		1,096,766
38,554	Union Pacific Corporation		2,120,470
			5,565,072
Rubber And Miscellaneous Plastics Products – 0.27%
11,171	Cooper Tire & Rubber Company		136,286
26,627	Goodyear Tire & Rubber Co†		137,662
40,167	Nike Incorporated – Cl B		2,065,387
9,107	Reebok International Limited†		299,165
12,749	Sealed Air Corporation†		511,617
8,859	Tupperware Corporation		122,431
			3,272,548
Security And Commodity Brokers, Dealers, Exchanges & Services – 1.85%
15,074	Bear Stearns Companies Incorporated		988,854
204,084	Charles Schwab Corporation		1,473,486
39,097	Franklin Resources Incorporated		1,286,682
71,683	Goldman Sachs Group Incorporated		4,880,179
33,792	Janus Capital Group Incorporated		384,891

158

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Shares	Security Name	Value
Security And Commodity Brokers, Dealers, Exchanges & Services (continued)
36,835	Lehman Brothers Holdings	$	2,127,221
131,300	Merrill Lynch & Company Incorporated		4,648,020
164,536	Morgan Stanley		6,309,956
18,576	T Rowe Price Group Incorporated		503,763
			22,603,052
Social Services – 0.21%
46,663	Dominion Resources, Incorporated (VA)		2,583,730
Stone, Clay, Glass, And Concrete Products – 0.09%
182,066	Corning Incorporated†		1,063,265
Tobacco Products – 0.98%
314,201	Altria Group Incorporated		9,413,461
64,537	KeyCorp		1,455,955
12,887	RJ Reynolds Tobacco Hldgs		415,735
25,485	UST Incorporated		703,386
			11,988,537
Transportation By Air – 0.36%
18,736	Delta Air Lines Incorporated		166,750
45,330	Fedex Corporation		2,496,324
117,660	Southwest Airlines Company		1,689,598
			4,352,672
Transportation Equipment – 1.26%
13,692	Brunswick Corporation		260,148
22,570	Dana Corporation		159,344
84,977	Delphi Corporation		580,393
278,731	Ford Motor Company		2,096,057
30,519	General Dynamics Corporation		1,680,681
85,124	General Motors Corporation†		2,861,869
26,528	Genuine Parts Company		809,369
17,845	Goodrich Company, BF		250,901
45,969	Harley-Davidson Incorporated		1,825,429
13,943	ITT Industries Incorporated		744,696
10,363	Navistar International Corporation		255,033
27,724	Northrop Corporation		2,378,719
17,601	Paccar Incorporated		884,802
20,651	Textron Incorporated		567,077
			15,354,518
Transportation Services – 0.03%
21,671	Sabre Holdings Corporation†		344,786
Utilities Revenue – 0.09%
47,414	Marathon Oil Corporation		1,136,514

159

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INDEX PORTFOLIO

Shares	Security Name	Value
Water Transportation – 0.18%
89,153	Carnival Cruise Lines	$	2,149,479
Wholesale Trade-Durable Goods – 2.20%
13,888	Grainger (W W ) Incorporated		595,795
451,197	Johnson & Johnson		26,110,770
19,597	Visteon Corporation		116,406
			26,822,971
Wholesale Trade Non-Durable Goods – 0.88%
16,741	AmerisourceBergen Corporation		878,903
9,167	Brown-Forman Corporation		704,942
68,677	Cardinal Health Incorporated		3,912,529
44,193	Mckesson Corporation		1,101,731
66,998	Safeway Incorporated†		1,268,271
20,305	Supervalu		314,728
99,288	Sysco Corporation		2,525,887
			10,706,991
Total Common Stock – ($1,288,095,785)			1,187,579,980
Rights – 0.00%
32,300	Seagate Rights (a)		0
Total Rights (Cost $0.00)			0

160

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INDEX PORTFOLIO

Principal		Security Name			Interest Rate		Maturity Date	Value
Short Term Investments – 2.56%
Us Government – 0.32%
$	420,00	UST Bill, Due 4/1/3#			1.60	%ª	04/10/2003	$	419,833
	1,430,000	UST Bill, Due 4/1/3#			1.47	ª	04/10/2003		1,429,474
	750,000	UST Bill, Due 4/1/3#			1.58	ª	04/10/2003		749,704
	345,000	UST Bill, Due 4/1/3#			1.62	ª	04/10/2003		344,860
	1,005,000	UST Bill, Due 6/5/3#			1.20	ª	06/05/2003		1,002,975
									3,946,846
Repurchase Agreement – 2.24%
	27,405,826	Goldman Sachs & Company – 12% Collateralized by U.S. Government			1.42		04/01/2003		27,405,826
Total Short Term Investments (Cost $31,327,886)									31,352,672
Total Investment in Securities (Cost $1,319,423,671)*			99.83	%				$	1,218,932,652
Other Assets and Liabilities, Net			0.17						2,072,374
Total Net Assets			100.00	%				$	1,221,005,026

† Non income producing securities

(a) Security Fair Valued in accordance with the procedures approved by the Board of Directors.

# Securities pledged as collateral for futures transactions. (See Note 2)

ª Yield to Maturity.

‡ Security of an affiliate of the fund with a cost of $7,850,370

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized depreciation consist of:

Gross Unrealized Appreciation	$	214,224,614
Gross Unrealized Depreciation		(314,715,633	)
Net Unrealized Depreciation	$	(100,491,019	)

The accompanying notes are an integral part of these financial statements.

161

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INTERNATIONAL EQUITY PORTFOLIO

Shares	Security Name	Value
Common Stock – 89.75%
Australia – 2.97%
237,100	Australia and New Zealand Banking Group Limited (Depository Institutions)	$	2,568,981
1,457,700	BHP Billiton Limited (Oil and Gas Extraction)		8,174,574
535,900	News Corporation (Printing, Publishing, and Allied Industries)		3,487,775
			14,231,330
Brazil – 0.73%
175,500	Aracruz Celulose (Paper and Allied Products)		3,511,755
Canada – 3.6%
89,700	Canadian National Railway (Railroad Transportation)†		3,826,584
372,200	Loblaw Companies Limited (Food Stores)†		13,423,532
			17,250,116
Finland – 1.46%
238,200	Nokia Oyj (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		3,290,644
399,900	Stora Enso Oyj (Paper and Allied Products)		3,687,343
			6,977,987
France – 7.05%
238,600	Arcelor (Primary Metal Industries)		2,098,509
166,400	Aventis (Chemicals and Allied Products)		7,304,808
56,300	Lafarge SA (Business Services/Computer Software)		3,151,601
57,205	Sanofi-Synthelabo (Chemicals and Allied Products)		2,878,290
110,000	Television Francaise (Communications)		2,506,274
124,900	Total Fina (Oil and Gas Extraction)		15,809,782
			33,749,264
Germany – 2.79%
144,700	EON AG (Electric, Gas, and Sanitary Services)		5,965,350
27,000	Muenchener Rueckversicherung AG (Business Services)		1,546,780
77,300	SAP AG (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		5,858,105
			13,370,235
Greece – 0.20%
102,800	Hellenic Tellecommunication Organization SA (Ote) (Electronic and Other Electrical Equipment & Components, Except Computer Equipment)		942,275
Hong Kong – 1.21%
563,120	HSBC Holdings PLC (Non-Depository Credit Institutions)		5,794,054
Ireland – 2.33%
173,100	Anglo Irish Bank Corporation (Depository Institutions)		1,235,322
368,700	Bank of Ireland (Banking)		3,938,776
144,200	Ryanair Holdings PLC (Transportation by Air)†		5,979,974
			11,154,072

162

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INTERNATIONAL EQUITY PORTFOLIO

Shares	Security Name	Value
Italy – 2.85%
114,900	Banco Populare Di Verona (Depository Institutions)	$	1,303,944
741,800	ENI SpA (Oil and Gas Extraction)		9,907,719
643,200	Unicredito Italiano SpA (Depository Institutions)		2,449,497
			13,661,160
Japan – 13.9%
177,493	7-11 Japan (General Merchandise Stores)		4,685,050
258,268	Canon Incorporated (Measuring, Analyzing and Controlling Instruments: Photographic, Medical & Optical Goods)		9,016,949
55,200	Fanuc Company (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		2,392,714
211,785	Fuji Photo Film Company Ordinary (Packaged Foods)		6,501,075
157,200	Fujisawa Pharmaceuticals (Chemicals and Allied Products)		3,161,765
592,793	Nomura Holdings Incorporated (Security and Commodity Brokers, Dealers, Exchanges & Services)		6,173,887
1,787	NTT DoCoMo Incorporated (Business Services)		3,330,469
166,445	Ricoh Company Limited (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		2,600,967
84,000	Rinnai Corporation (Building Materials, Hardware, Garden Supply, and Mobile Home Dealers)		1,700,118
75,539	Secom Company Limited (Communications)		1,936,571
292,942	Sharp Corporation (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		2,890,388
153,300	Sony Corporation (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		5,429,753
85,500	Takeda Chemical Inds (Chemicals and Allied Products)		3,194,173
111,700	Tostem Inax Holding Corporation (Building Materials, Hardware, Garden Supply, and Mobile Home Dealers)		1,185,953
556,500	Toyota Motor Corporation (Transportation Equipment)		12,366,147
			66,565,979
Korea (South) – 0.60%
2,400	Samsung Electronics (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		140,040
49,300	Samsung Electronics (Electronic and Other Electrical Equipment and Components, Except Computer Equipment)		2,711,707
			2,851,747
Mexico – 0.70%
1,371,300	Walmart De Mexico (General Merchandise Stores)		3,334,052
Netherlands – 6.29%
110,200	Heineken NV (Food and Kindred Products)		4,087,316
511,500	Philips Electronics NV (Electronic and Other Electrical Equipment & Components, Except Computer Equipment)		8,031,781
297,300	Royal Dutch Petroleum Company (Petroleum Refining and Related Industries)		12,103,908
388,100	TPG NV (Transportation Services)		5,912,001
			30,135,006
Singapore – 1.10%
1,012,080	DBS Group Holdings Limited (Non-Depository Credit Institutions)		5,274,983
Spain – 1.62%
85,200	Banco Populare (Depository Institutions)		3,681,631
437,151	Telefonica SA (Communications)†		4,088,064
			7,769,695

163

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

INTERNATIONAL EQUITY PORTFOLIO

Shares	Security Name	Value
Sweden – 0.40%
661,500	Teliasonera AB (Communications)	$	1,895,809
Switzerland – 9.91%
121,400	Adecco SA (Business Services)		3,373,071
157,500	Credit Suisse Group (Non-Depository Credit Institutions)		2,738,705
73,000	Nestle SA (Food and Kindred Products)		14,449,188
288,100	Novartis AG (Chemicals and Allied Products)		10,669,502
326,300	Stmicroelectronics NV (Electronic and Other Electrical Equipment & Components, Except Computer Equipment)		6,177,631
66,860	Swiss Reinsurance (Insurance Carriers)		3,280,022
158,900	UBS AG (Depository Institutions)		6,760,651
			47,448,770
United Kingdom – 19.74%
155,200	Amersham PLC (Health Services)		1,008,254
1,117,900	Barclays PLC (Foreign Depository Institutions)		6,449,590
91,100	BNP Paribas SA (Depository Institutions)		3,648,294
1,337,800	BP Amoco PLC (Oil and Gas Extraction)		8,484,817
304,500	British Sky Broadcasting (Communications)†		3,015,399
905,755	Capita Group PLC (Health Services)		3,385,931
1,051,000	Centrica PLC (Electric, Gas, and Sanitary Services)		2,396,375
1,249,600	Compass Group PLC (Eating and Drinking Places)		5,337,931
867,400	Diageo PLC (Eating and Drinking Places)		8,898,163
288,700	Glaxo Smithkline (Chemicals and Allied Products)		5,079,000
239,200	HSBC Holdings PLC (Non-Depository Credit Institutions)		2,453,817
558,000	Pearson PLC (Printing, Publishing, and Allied Industries)		4,238,028
283,900	Reckitt Benckiser (Miscellaneous Consumer Products)		4,653,507
239,600	Rion Tinto PLC (Metal Mining)†		4,465,159
573,000	Royal Bank of Scotland (Depository Institutions)		12,906,419
430,600	Smith and Nephew PLC (Chemicals And Allied Products)		2,634,033
6,721,600	Vodafone Group PLC (Communications)		12,005,697
635,200	WPP Group PLC (Communications)		3,423,743
			94,484,157
USA – 10.30%
89,600	Glaxo Smithkline – ADR (Chemicals and Allied Products)		3,153,023
802,100	IShares MSCI Belgium Inde (Holding and Other Investment Offices)		6,841,913
522,400	IShares MSCI Germany Inde (Holding and Other Investment Offices)		4,539,656
292,000	IShares MSCI Italy Index (Holding and Other Investment Offices)		4,067,560
518,600	IShares MSCI Japan (Holding and Other Investment Offices)		3,350,156
434,700	IShares MSCI Netherlands (Holding and Other Investment Offices)		4,703,454
754,100	IShares MSCI Spain Index (Holding and Other Investment Offices)		13,664,292
600,500	IShares MSCI Sweden Index (Holding and Other Investment Offices)		5,536,610
309,000	IShares MSCI United Kingd (Holding and Other Investment Offices)		3,479,340
			49,336,004
Total Common Stock (Cost $511,570,629)			429,738,450

164

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

INTERNATIONAL EQUITY PORTFOLIO

Principal		Security Name	Interest Rate	Maturity Date	Value
Short-Term Investments – 9.53%
Repurchase Agreement – 9.53%
$	45,612,682	Credit Suisse First Boston – 102% Collateralized by US Government Securities	1.37%	04/01/2003	$	45,612,682
Total Short-Term Investments (Cost $45,612,682)						45,612,682

Total Investments In Securities (Cost $557,183,311)*	99.28	%	$	475,351,132
Other Assets and Liabilities, Net	0.72			3,434,956
Total Net Assets	100.00	%	$	478,786,088

† Non Income producing securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized depreciation consist of:

Gross Unrealized Appreciation	$	5,359,601
Gross Unrealized Depreciation		(87,191,780	)
Net Unrealized Depreciation	$	(81,832,179	)

The accompanying notes are an integral part of these financial statements.

165

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

LARGE CAP APPRECIATION PORTFOLIO

Shares	Security Name	Value
Common Stock – 94.88%
Apparel And Accessory Stores – 1.22%
59,900	Gap Incorporated	$	867,951
Business Services – 8.42%
17,400	Affiliated Computer Services†		770,126
30,400	BMC Software Incorporated†		458,736
52,600	BEA Systems Incorporated†		535,994
10,700	Ebay Incorporated†		912,603
68,600	Microsoft Corporation		1,660,806
34,000	Network Associates Incorporated†		469,540
16,100	Symantec Corporation†		630,798
32,100	Veritas Software Corporation†		564,318
			6,002,921
Building Construction – General Contractors & Operative Builders – 1.03%
38,100	DR Horton Incorporated		731,520
Building Materials, Hardware, Garden Supply, & Mobile Home Dealers – 1.12%
19,500	Lowe’s Companies Incorporated		795,990
Chemicals And Allied Products – 13.53%
21,400	Amgen Incorporated†		1,231,570
15,800	Avon Products Incorporated		901,390
19,400	Clorox Company		895,698
15,000	Colgate-Palmolive Company		816,600
15,500	Ecolab Incorporated		764,615
21,300	Gilead Sciences Incorporated†		894,387
68,800	Pfizer Incorporated†		2,143,808
26,300	Pharmacia Corporation		1,138,790
9,700	Procter & Gamble Company		863,785
			9,650,643
Communications – 3.16%
25,800	Centurytel Incorporated		712,080
20,400	Clear Channel Communication†		691,968
63,700	Nextel Communications Incorporated†		852,943
			2,256,991
Computers, Networks & Software – 0.29%
6,800	Adobe Systems, Incorporated		209,644
Depository Institutions – 5.63%
9,900	Bank Of America Corporation		661,716
29,100	Citigroup Incorporated		1,002,495
21,200	First Tennessee National Corporation		841,852
26,300	National City Corporation		732,455
56,300	Sovereign Bancorporation Incorporated		779,755
			4,018,273

166

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

LARGE CAP APPRECIATION PORTFOLIO

Shares	Security Name	Value
Drug & Hospital Supplies – 0.49%
8,500	Boston Scientific Corporation†	$	346,460
Electric, Gas, And Sanitary Services – 1.08%
27,200	Southern Company Incorporated		773,568
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 4.56%
22,000	L-3 Communications Holdings†		883,740
23,900	Qlogic Corporation†		887,646
21,000	Qualcomm Incorporated†		757,260
44,000	Texas Instruments Incorporated		720,280
			3,248,926
Engineering, Accounting, Research Management & Related Services – 1.36%
16,300	Quest Diagnostics Incorporated†		972,947
Fabricated Metal Products, Except Machinery And Transportation Equipment – 2.35%
18,100	Fortune Brands Incorporated		775,947
18,900	Lockheed Martin Corporation		898,695
			1,674,642
Food And Kindred Products – 2.18%
17,600	Anheuser-Busch Companies Incorporated		820,336
18,300	Pepsico Incorporated		732,000
			1,552,336
Furniture And Fixtures – 1.24%
31,200	Newell Rubbermaid Incorporated		884,520
General Merchandise Stores – 1.09%
14,900	Wal-Mart Stores Incorporated		775,247
Health Services – 1.34%
17,200	Express Scripts Incorporated†		957,696
Higher Education – 1.22%
17,400	Apollo Group, Incorporated (Class A)†		868,260
Home Furniture, Furnishings, And Equipment Stores – 1.02%
21,100	Bed Bath & Beyond Incorporated†		728,794
Industrial & Commercial Machinery & Computer Equipment – 8.46%
63,400	Cisco Systems Incorporated†		817,860
33,100	Dell Computer Corporation†		903,961
17,600	IBM Corporation		1,380,368
9,700	International Game Technology†		794,430
6,700	3M Company		871,201
7,500	United Technologies Corporation		433,350
15,400	Varian Medical Systems†		830,522
			6,031,692

167

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

LARGE CAP APPRECIATION PORTFOLIO

Shares	Security Name	Value
Industrial Minerals – 0.98%
12,400	Praxair, Incorporated	$	698,740
Insurance Carriers – 2.44%
21,100	Safeco Corporation		737,867
10,900	Unitedhealth Group Incorporated		999,203
			1,737,070
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 6.54%
14,400	Allergan Incorporated		982,224
27,000	Becton Dickinson & Company		929,880
19,600	Medtronic Incorporated		884,352
19,600	St Jude Medical Incorporated†		955,500
18,800	Zimmer Holdings Incorporated†		914,244
			4,666,200
Miscellaneous Retail – 2.44%
32,400	Amazon.com Incorporated†		843,372
48,800	Staples Incorporated†		894,504
			1,737,876
Non-Depository Credit Institutions – 2.42%
15,300	Countrywide Financial		879,750
12,900	FNMA		843,015
			1,722,765
Oil And Gas Extraction – 5.59%
16,200	Anadarko Petroleum Corporation		737,100
13,650	Apache Corporation		842,751
15,900	Devon Energy Corporation		766,698
19,400	EOG Resources Incorporated		767,464
29,100	Occidental Petroleum Corporation		871,836
			3,985,849
Other – 1.25%
31,000	Watson Pharmaceuticals†		891,870
Petroleum Refining And Related Industries – 1.84%
37,500	Exxon Mobil Corporation		1,310,625
Printing, Publishing, And Allied Industries – 3.13%
9,700	Gannett Company Incorporated		683,171
16,000	Tribune Company		720,160
22,700	Viacom Incorporated†		829,004
			2,232,335

168

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

LARGE CAP APPRECIATION PORTFOLIO

Shares	Security Name	Value
Security And Commodity Brokers, Dealers, Exchanges & Services – 2.42%
14,300	Bear Stearns Companies Incorporated	$	938,080
16,100	Legg Mason Incorporated		784,714
			1,722,794
Transportation Equipment – 1.9%
18,200	Harley-Davidson Incorporated		722,722
11,900	ITT Industries Incorporated		635,579
			1,358,301
Wholesale Trade-Durable Goods – 1.91%
23,600	Johnson & Johnson		1,365,732
Wholesale Trade Non-Durable Goods – 1.23%
20,500	Dean Foods Company†		879,655
Total Common Stock (Cost $67,555,913)			67,658,833

Principal					Interest Rate		Maturity Date
Short-Term Investments – 5.14%
Repurchase Agreements – 5.14%
$	3,667,216	Credit Suisse First Boston Repurchase Agreement – 102% Collateralized by US Government Securities†			1.37	%	4/1/2003		3,667,215
Total Short-Term Investments (Cost $3,667,215)									3,667,215
Total Investments in Securities (Cost $71,223,128)*			100.02	%				$	71,326,048
Other Assets and Liabilities, Net			(0.02	)					(3,912	)
Total Net Assets			100.00	%				$	71,322,136

† Non-Income earning securities.

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized appreciation consist of:

Gross Unrealized Appreciation	2,970,343
Gross Unrealized Depreciation	(2,867,423	)
Net Unrealized Appreciation	102,920

The accompanying notes are an integral part of these financial statements.

169

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

LARGE COMPANY GROWTH PORTFOLIO

Shares	Security Name	Value
Common Stock – 98.27%
Apparel And Accessory Stores – 4.57%
1,838,200	Kohls Corporation†	$	104,005,356
Building Materials, Hardware, Garden Suppy, & Mobile Home Dealers – 7.87%
1,066,600	Fastenal Company		30,067,453
2,953,417	Home Depot Incorporated		71,945,238
1,889,500	Lowe’s Companies Incorporated		77,129,390
			179,142,081
Business Services – 28.57%
682,100	Automatic Data Processing		21,001,859
656,800	Bisys Group Incorporated†		10,718,976
3,116,200	Concord EFS Incorporated†		29,292,280
698,200	DST Systems Incorporated†		18,991,040
1,646,100	Ebay Incorporated†		140,395,869
3,665,800	First Data Corporation		135,671,258
2,230,368	Fiserv Incorporated†		70,211,985
1,949,300	IMS Health Incorporated		30,428,573
5,902,320	Microsoft Corporation		142,895,167
1,420,500	Sungard Data Systems Incorporated†		30,256,650
1,159,700	Veritas Software Corporation†		20,387,526
			650,251,183
Chemicals And Allied Products – 9.39%
1,767,500	Amgen Incorporated†		101,719,625
3,590,325	Pfizer Incorporated		111,874,527
			213,594,152
Computer Technologies – 1.55%
1,292,300	Dell Computer Corporation†		35,292,713
Depository Institutions – 1.29%
926,300	State Street Corporation		29,298,869
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 7.9%
6,777,150	Intel Corporation		110,332,002
4,955,400	Nokia OYJ		69,425,154
			179,757,156
Engineering, Accounting, Research Management & Related Services – 4.16%
3,441,510	Paychex Incorporated		94,538,280
2,954	Per-Se Technologies Incorporated		32
			94,538,312
General Merchandise Stores – 3.04%
1,329,100	Wal-Mart Stores Incorporated		69,153,073

170

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

LARGE COMPANY GROWTH PORTFOLIO

Shares	Security Name	Value
Industrial & Commercial Machinery & Computer Equipment – 4.24%
5,931,200	Cisco Systems Incorporated†	$	76,512,480
2,748,500	EMC Corporation†		19,871,655
			96,384,135
Insurance Carriers – 4.38%
2,016,566	American International Group		99,719,189
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 6.25%
3,152,200	Medtronic Incorporated		142,227,264
Miscellaneous Retail – 2.36%
1,785,050	Costco Wholesale Corporation		53,605,052
Personal Services – 2.57%
1,775,150	Cintas Corporation		58,402,435
Security And Commodity Brokers, Dealers, Exchanges & Services – 7.82%
9,167,887	Charles Schwab Corporation		66,192,144
1,641,350	Goldman Sachs Group Incorporated		111,743,108
			177,935,252
Wholesale Trade Non-Durable Goods – 2.31%
923,100	Cardinal Health Incorporated		52,589,007
Total Common Stock (Cost $2,444,446,806)			2,235,895,229

Principal					Interest Rate		Maturity Date	Value
Short-Term Investments – 1.66%
Repurchase Agreements – 1.66%
$	37,741,471	Credit Suisse First Boston Repurchase Agreement – 102% Collateralized by US Government Securities			1.37	%	04/01/2003		37,741,471
Total Short-Term Investments (Cost $37,741,471)									37,741,471
Total Investments In Securities (Cost $2,482,188,277)			99.93	%				$	2,273,636,700
Other Assets And Liabilities, Net			0.07						1,600,245
Total Net Assets			100.00	%				$	2,275,236,945

† Non-income earning securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized depreciation consist of:

Gross Unrealized Appreciation	232,030,231
Gross Unrealized Depreciation	(440,581,808	)
Net Unrealized Depreciation	(208,551,577	)

The accompanying notes are an integral part of these financial statements.

171

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP BASIC VALUE PORTFOLIO

Shares	Security Name	Value
Common Stock – 89.02%
Apparel & Accessory Stores – 3.06%
9,610	JOS A Bank Clothiers Incorporated†	$	234,676
Business Services – 8.00%
12,500	EPIQ Systems Incorporated†		240,000
6,500	Elite Information Group†		61,243
22,850	Plumtree Software Incorporated†		91,400
12,271	Progress Software Corporation†		220,264
			612,907
Chemicals & Allied Products – 2.33%
5,000	Chattem Incorporated†		76,950
2,000	NBTY Incorporated†		37,920
3,670	United Therapeutics Corporation†		63,271
			178,141
Depository Institutions – 9.21%
1,876	Banknorth Group Incorporated		40,917
7,933	Colonial Bancgroup Incorporated		89,246
3,437	FNB Corporation		98,436
3,700	Prosperity Bancshares Incorporated		61,346
4,592	Provident Bankshares Corporation		105,983
3,000	Summit Bancshares Incorporated		57,360
3,332	United Bankshares Incorporated		92,296
2,130	West Essex Bancorp Incorporated†		74,401
2,500	Whitney Holding Corporation		85,300
			705,285
Eating & Drinking Places – 0.48%
2,783	Red Robin Gourmet Burgers†		36,986
Electric, Gas, & Sanitary Services – 8.30%
6,550	DQE Incorporated		79,845
4,500	Energen Corporation		144,270
6,853	Ferrellgas Partners LP		142,405
2,500	Hawaiian Electric Industries Incorporated		101,900
12,750	Southwestern Energy Company†		167,025
			635,445
Electronic & Other Electrical Equipment & Components, Except Computer Equipment – 4.08%
2,500	Moog Incorporated†		76,500
6,349	OSI Systems Incorporated†		100,378
12,520	Rayovac Corporation†		135,842
			312,720
Fabricated Metal Products, Except Machinery & Transportation Equipment – 1.31%
17,842	Crown Holdings Incorporated†		100,272

172

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP BASIC VALUE PORTFOLIO

Shares	Security Name	Value
Food & Kindred Products – 5.6%
5,000	Bunge Limited	$	125,800
12,282	Boston Beer Incorporated Class A†		154,262
485	Farmer Brothers Company		148,914
			428,976
Health Services – 2.08%
2,750	Coventry Health Care Incorporated†		90,475
7,784	Province Healthcare Company†		68,888
			159,363
Holding & Other Investment Offices – 1.55%
6,810	Annaly Mortgage Management		118,971
Home Furniture, Furnishings, & Equipment Stores – 0.44%
1,931	Movie Gallery Incorporated†		33,638
Industrial & Commercial Machinery & Computer Equipment – 3.07%
3,950	Briggs & Stratton Corporation		153,418
4,250	Lufkin Industries Incorporated		81,388
			234,806
Insurance Carriers – 10.95%
10,271	Endurance Specialty Holdings†		248,455
8,192	Platinum Underwriters Holdings, Limited		207,667
8,700	Scottish Annuity & Life Holdings Limited		151,554
11,050	Ohio Casualty Corporation†		142,766
4,110	Zenith National Insurance		88,160
			838,602
Leather & Leather Products – 1.03%
7,042	Maxwell Shoe Company†		78,518
Leisure – 0.50%
4,926	Anthony Industries Incorporated†		38,029
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 1.05%
3,020	Vital Signs Incorporated		80,181
Miscellaneous Retail – 7.11%
12,690	Duane Reade Incorporated†		160,909
7,435	Hibbett Sporting Goods†		183,875
11,066	Jo-Ann Stores Incorporated†		199,741
			544,525
Motor Freight Transportation & Warehousing – 4.40%
9,030	Celadon Group Incorporated†		71,698
2,133	Hunt (JB) Transport Services		57,420
5,950	Pam Transportation Services†		130,186
3,230	Yellow Corporation†		77,940
			337,244

173

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP BASIC VALUE PORTFOLIO

Shares	Security Name	Value
Oil & Gas Extraction – 3.84%
6,660	Key Energy Services Incorporated†	$	67,133
5,050	Patina Oil & Gas Corporation		166,145
1,810	Precision Drilling Corporation†		60,400
			293,678
Personal Services – 0.71%
3,500	Unifirst Corporation		54,075
Printing, Publishing, & Allied Industries – 1.07%
5,000	Ennis Business Forms		56,650
1,700	Standard Register Company		25,330
			81,980
Rubber & Miscellaneous Plastics Products – 2.94%
5,534	Constar International Group†		35,091
7,320	Jarden Corporation†		190,320
			225,411
Tobacco Products – 1.23%
2,500	Universal Corporation-VA		94,400
Transportation By Air – 2.33%
12,684	Atlantic Coast Airlines†		78,767
9,638	Skywest Incorporated		99,368
			178,135
Transportation Services – 0.75%
4,569	Pacer International Incorporated†		57,250
Wholesale Trade Non-Durable Goods – 1.60%
4,800	United Natural Foods Incorporated†		122,400
Total Common Stock (Cost $6,872,473)			6,816,614

Principal			Interest Rate	Maturity Date
Total Investments In Securities (Cost $6,872,473)	89.02	%			$	6,816,614
Other Assets And Liabilities, Net	10.98					840,647
Total Net Assets	100.00	%			$	7,657,261

† Non-income earning securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized depreciation consist of:

Gross Unrealized Appreciation	$	448,689
Gross Unrealized Depreciation		(504,548	)
Net Unrealized Depreciation	$	(55,859	)

The accompanying notes are an integral part of these financial statements.

174

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Common Stock – 90.48%
Agricultural Production Crops – 0.26%
21,240	Delta & Pine Land Company	$	480,236
Amusement And Recreation Services – 0.39%
16,102	Argosy Gaming Company†		321,718
18,449	Bally Total Fitness Holding†		93,536
14,427	Pinnacle Entertainment†		70,404
17,153	WMS Industries Incorporated†		218,701
			704,359
Apparel & Other Finished Products Made From Fabrics & Similar Materials – 0.98%
3,570	Haggar Corporation		37,913
14,221	Kellwood Company		411,556
18,693	Nautica Enterprises Incorporated†		181,322
6,812	Oshkosh B’Gosh Incorporated		177,111
16,882	Phillips-Van Heusen Corporation		208,493
15,092	Quiksilver Incorporated†		462,117
17,907	Russell Corporation		313,373
			1,791,885
Apparel And Accessory Stores – 1.99%
24,941	Ann Taylor Stores Corporation†		512,039
7,203	Ashworth Incorporated†		45,739
24,750	Burlington Coat Factory		403,425
14,203	Cato Corporation		270,425
14,795	Children’s Place†		136,262
14,345	Christopher & Banks Corporation†		253,907
16,207	Dress Barn Incorporated†		217,984
11,214	Footstar Incorporated†		94,198
18,110	Goody's Family Clothing†		72,983
16,206	Gymboree Corporation†		243,738
17,275	Hot Topic Incorporated†		402,680
27,453	Pacific Sunwear Of California†		558,669
18,964	Too Incorporated†		314,992
16,431	Wet Seal Incorporated†		119,946
			3,646,987
Automotive Dealers And Gasoline Service Stations – 0.44%
29,648	O’Reilly Automotive Incorporated†		803,461
Automotive Repair, Services, And Parking – 0.14%
20,025	Central Parking Corporation		200,250
8,331	Midas Incorporated		60,816
			261,066
Building Construction – General Contractors & Operative Builders – 1.61%
14,746	MDC Holdings Incorporated		565,951

175

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Building Construction – General Contractors & Operative Builders (continued)
3,969	NVR Incorporated†	$	1,305,801
14,275	Ryland Group Incorporated		616,537
18,187	Standard-Pacific Corporation		463,951
			2,952,240
Business Services – 6.14%
12,080	Aaron Rents Incorporated		246,190
27,297	ABM Industries Incorporated		358,683
15,510	Administaff Incorporated†		96,938
11,055	ADVO Incorporated†		364,815
23,490	American Management Systems†		283,759
8,121	Ansys Incorporated†		194,498
16,441	Arbitron Incorporated†		521,180
10,796	BARRA Incorporated†		320,533
12,858	Brady Corporation		363,624
6,811	Brooktrout Incorporated†		32,761
15,965	CACI International Incorporated†		532,592
17,739	Captaris Incorporated†		51,266
13,095	Carreker Corporation†		26,845
19,753	Cerner Corporation†		639,602
35,854	Ciber Incorporated†		170,665
23,673	Cognex Corporation†		501,157
11,609	Computer Task Group Incorporated		22,405
22,208	Dendrite International Incorporated†		188,768
25,960	Efunds Corporation†		178,345
19,974	Filenet Corporation†		209,527
12,323	Gerber Scientific Incorporated		81,085
10,099	Heidrick & Struggles Incorporated†		117,148
19,402	Hyperion Solutions Corporation†		470,499
6,812	Insurance Auto Auctions†		74,932
15,807	JDA Software Group Incorporated†		159,809
11,076	Kronos Incorporated†		388,214
22,841	Labor Ready Incorporated†		130,194
16,049	Manhattan Associates Incorporated†		281,339
8,430	Mapinfo Corporation†		32,624
7,068	Memberworks Incorporated†		147,651
25,850	Midway Games Incorporated†		85,564
13,564	MRO Software Incorporated†		93,049
14,412	NCO Group Incorporated†		208,974
19,338	NDCHealth Corporation		324,298
19,087	Netegrity Incorporated†		70,813
12,590	Network Equipment Technology†		75,918
14,690	On Assignment Incorporated†		62,139
11,075	PC-Tel Incorporated†		99,786
13,687	Phoenix Technologies Limited†		58,170
18,574	Progress Software Corporation†		333,403

176

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Business Services (continued)
8,791	QRS Corporation†	$	43,164
15,556	Radiant Systems Incorporated†		115,114
9,820	Radisys Corporation†		65,107
10,804	Roxio Incorporated†		66,985
22,605	Serena Software Incorporated†		360,798
32,797	Spherion Corporation†		130,204
9,548	SPSS Incorporated†		108,083
7,891	StarTek Incorporated†		180,309
18,701	Systems & Computer Technology†		143,063
22,772	Take-Two Interactive†		508,954
7,617	Talx Corporation		98,792
22,083	THG Incorporated†		288,846
19,361	Verity Incorporated†		268,150
8,465	Volt Information Sciences†		86,851
11,935	Websense Incorporated†		175,086
			11,239,268
Chemicals And Allied Products – 4.22%
28,565	Alpharma Incorporated		512,170
12,463	Arch Chemicals Incorporated		233,058
11,886	ArQule Incorporated†		28,645
14,479	Cambrex Corporation		347,786
7,918	Cima Labs Incorporated†		171,821
15,880	Diagnostic Products Corporation		593,118
17,978	Georgia Gulf Corporation		361,898
15,787	HB Fuller Company		364,995
19,131	IDEXX Laboratories Incorporated†		669,011
17,884	Macdermid Incorporated		365,728
14,854	Medicis Pharmaceutical†		825,734
14,005	MGI Pharma Incorporated†		176,603
8,455	Natures Sunshine Products		74,150
36,967	NBTY Incorporated†		700,894
12,546	Noven Pharmaceuticals Incorporated†		177,150
15,678	OM Group Incorporated		137,183
22,205	Omnova Solutions Incorporated†		65,505
14,113	Parexel International Corporation†		193,630
4,338	Penford Corporation		51,926
50,977	Polyone Corporation		198,810
5,186	Quaker Chemical Corporation		105,794
17,171	Scotts Company (The)†		889,458
9,630	Surmodics Incorporated†		297,663
17,724	Wellman, Incorporated		165,365
			7,708,095
Coal Mining – 0.22%
41,899	Massey Energy Company		393,851

177

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Communications – 0.87%
20,824	Anixter International Incorporated†	$	472,080
12,729	Audiovox Corporation†		94,322
9,670	Boston Communications Group†		151,432
31,012	General Communication Incorporated†		184,521
20,578	Global Payments Incorporated		628,041
13,727	Metro One Telecomm Incorporated†		68,361
			1,598,757
Construction Special Trade Contractors – 0.33%
8,298	EMCOR Group Incorporated†		400,379
14,749	Insituform Technologies†		198,374
			598,753
Depository Institutions – 7.61%
13,602	Anchor Bancorp Wisconsin		298,564
13,887	Bankunited Financial Corporation†		245,106
12,602	Boston Private Financial Holdings		188,526
20,191	Chittenden Corporation		527,793
25,137	Commercial Federal Corporation		545,976
14,334	Dime Community Bancshares		327,245
15,536	Downey Financial Corporation		612,274
13,278	East West Bancorp Incorporated		409,626
22,226	First Bancorp		599,657
26,082	First Midwest Bancorp Incorporated		673,176
8,138	First Republic Bank†		175,781
9,417	FirstFed Financial Corporation†		284,299
16,339	Flagstar Bancorp Incorporated		430,859
6,419	GBC Bancorp/California		155,019
25,044	Hudson United Bancorp		771,355
15,442	Irwin Financial Corporation		300,965
12,933	MAF Bancorp Incorporated		435,195
13,635	Provident Bankshares Corporation		314,696
15,857	Riggs National Corporation Washington Dc		227,548
13,258	Seacoast Financial Services		241,970
26,342	South Financial Group Incorporated		570,304
18,830	Southwest Bancorp of Texas†		565,465
33,504	Staten Island Bancorp Incorporated		499,880
24,438	Sterling Bancshares Texas		290,568
22,039	Susquehanna Bancshares		456,648
41,287	TrustCo Bank Corporation NY		397,594
11,694	UCBH Holdings Incorporated		514,302
23,461	United Bankshares Incorporated		649,870
38,669	Washington Federal Incorporated		814,369
19,865	Waypoint Financial Corporation		342,870
22,266	Whitney Holding Corporation		759,716
9,556	Wintrust Financial Corporation		273,302
			13,900,518

178

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Durable Goods – Consumer – 0.25%
14,970	Sturm Ruger & Company, Incorporated	$	131,137
10,106	Tractor Supply Company†		333,700
			464,837
Eating And Drinking Places – 2.39%
15,801	AFC Enterprises†		212,681
15,312	CEC Entertainment Incorporated†		416,640
11,685	IHOP Corporation†		263,380
20,320	Jack In The Box Incorporated†		367,995
15,431	Landry’s Seafood Restaurant		259,241
11,661	Lone Star Steakhouse		247,097
10,980	O’Charley’s Incorporated†		210,487
10,391	Papa Johns International†		260,087
13,946	PF Chang’s China Bistro†		516,002
12,234	Rare Hospitality International Incorporated†		340,595
24,048	Ryan’s Family Steak Houses†		252,528
21,618	Sonic Corporation†		550,394
14,978	Steak n Shake Company/The†		136,899
11,319	Triarc Companies†		315,233
			4,349,259
Educational Services – 0.38%
25,077	ITT Educational Services†		702,156
Electric Generation – 0.39%
15,462	UGI Corporation		706,613
Electric Intergrated – 0.07%
8,940	NUI Corporation		130,524
Electric, Gas, And Sanitary Services – 3.76%
8,437	American States Water Company		201,644
25,238	Atmosphere Energy Corporation		536,560
26,677	Avista Corporation		282,509
6,145	Cascade Natural Gas Corporation		119,213
6,520	Central Vermont Public Service		112,144
8,898	CH Energy Group Incorporated		371,047
26,164	Cleco Corporation		328,358
27,747	El Paso Electric Company†		299,668
19,267	Energen Corporation		617,700
2,736	Green Mountain Power Corporation		55,294
10,569	Laclede Group Incorporated		245,201
15,037	New Jersey Resources		490,958
14,205	Northwest Natural Gasco		356,546
20,803	Northwestern Corporation		43,686
18,456	Piedmont Natural Gas Company		657,956
30,918	Southern Union Company†		375,654

179

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Electric, Gas, And Sanitary Services (continued)
18,471	Southwest Gas Corporation	$	375,885
18,769	Southwestern Energy Company†		245,874
8,044	UIL Holdings Corporation		279,127
18,677	Unisource Energy Corporation		323,112
15,545	Waste Connections Incorporated†		536,303
			6,854,439
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 6.83%
13,424	Actel Corporation†		229,013
23,074	Acuity Brands Incorporated		310,345
59,646	Adaptec Incorporated†		359,665
17,855	Advanced Energy Industry†		153,374
33,440	Aeroflex Incorporated†		189,270
16,991	Allen Telecom Incorporated†		165,662
19,911	Alliance Semiconductor†		63,715
13,071	Applica Incorporated†		63,917
21,351	Artesyn Technologies Incorporated†		66,188
12,152	Astropower Incorporated†		50,795
17,093	ATMI Incorporated†		329,211
18,988	Baldor Electric Company		406,343
6,080	Bel Fuse Incorporated		122,208
13,499	Benchmark Electronics Incorporated†		382,427
14,296	C&D Technologies Incorporated		171,266
24,912	Cable Design Technologies†		165,665
7,271	Catapult Communications†		46,244
20,231	C-COR.net Corporation†		66,762
18,086	Checkpoint Systems Incorporated†		177,966
6,520	Concerto Software Incorporated†		35,860
9,520	Concord Communications†		81,586
18,976	CTS Corporation		115,754
14,864	Cubic Corporation		242,580
18,983	Cymer Incorporated†		448,948
11,703	Dionex Corporation†		386,550
15,090	DSP Group Incorporated†		273,582
10,047	Dupont Photomasks Incorporated†		201,543
15,420	Electro Scientific Industry†		193,675
24,076	ESS Technology Incorporated†		143,493
22,250	Exar Corporation†		282,802
17,939	Harman International Industry		1,050,687
33,413	Harmonic Incorporated†		111,265
14,521	Helix Technology Corporation		125,026
14,193	Hutchinson Technology†		350,851
13,708	Inter-Tel Incorporated		205,757
13,088	Magnetek Incorporated†		31,411
11,801	Mercury Computer System Incorporated†		320,987
19,520	Methode Electronics		158,112

180

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Electronic And Other Electrical Equipment & Components, Except Computer Equipment (continued)
16,095	Microsemi Corporation†	$	176,240
3,801	National Presto Industries, Incorporated		99,396
10,950	Park Electrochemical Corporation		165,783
1	Parthusceva Incorporated†		3
14,319	Pericom Semiconductor†		111,402
17,823	Photronics Incorporated†		211,915
15,850	Power Integrations Incorporated†		328,571
13,915	Regal Beloit		213,039
8,807	Rogers Corporation†		261,744
7,129	Royal Appliance Manufacturing Company†		52,327
6,220	Salton Incorporated†		65,310
8,123	SBS Technologies Incorporated†		59,054
76,814	Skyworks Solutions Incorporated†		478,551
16,173	Smith (AO) Corporation		433,436
9,302	Standard Microsystems†		141,297
7,041	Supertex Incorporated†		96,814
23,398	Symmetricom Incorporated†		88,678
22,324	Technitrol Incorporated		326,823
11,920	Three-Five Systems Incorporated†		60,792
7,539	Tollgrade Communications†		108,185
18,988	Varian Semiconductor Equipment†		386,216
14,532	Viasat Incorporated†		165,229
23,545	Vicor Corporation†		134,207
10,343	Zix Corporation†		44,475
			12,489,992
Electronic Data Processing – 0.33%
18,801	FactSet Research Systems, Incorporated		610,092
Engineering, Accounting, Research Management & Related Services – 2.75%
32,670	Bio-Technology General†		87,882
10,741	CDI Corporation†		250,265
30,698	Cephalon Incorporated†		1,226,078
21,693	Kroll Incorporated†		464,447
11,797	Maximus Incorporated†		250,332
30,917	Pharmaceutical Product Development†		830,152
35,233	PRG-Schultz International Incorporated†		254,030
24,497	Regeneron Pharmaceutical†		184,217
9,732	SourceCorp Incorporated†		136,345
29,680	Tetra Tech Incorporated†		419,675
17,930	URS Corporation†		206,733
49,667	US Oncology Incorporated†		352,636
18,336	Watson Wyatt & Company Holdings†		368,556
			5,031,348

181

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Fabricated Metal Products, Except Machinery And Transportation Equipment – 2.13%
21,237	Alliant Techsystems Incorporated†	$	1,147,010
19,988	Aptargroup Incorporated		646,612
10,509	Barnes Group, Incorporated		222,370
3,510	Butler Manufacturing Company		57,564
15,758	Commercial Metals Company		219,824
18,203	Griffon Corporation†		234,820
7,805	Material Sciences Corporation†		78,596
7,944	Mobile Mini Incorporated†		126,945
20,990	Shaw Group Incorporated†		210,950
13,625	Simpson Manufacturing Company†		460,525
7,285	SPS Technologies Incorporated		177,754
31,552	Tower Automotive Incorporated†		74,778
15,050	Watts Industries, Incorporated		234,479
			3,892,227
Food And Kindred Products – 1.07%
9,826	American Italian Pasta Company†		424,975
5,019	Coca-Cola Bottling Company		250,448
19,839	Corn Products International Incorporated		578,505
4,956	J & J Snack Foods Corporation†		150,266
16,187	Lance Incorporated		130,143
16,068	Ralcorp Holdings Incorporated-New†		418,411
			1,952,748
Food Stores – 0.32%
21,426	Great Atlantic & Pacific Tea Company†		92,346
16,207	Panera Bread Company†		494,151
			586,497
Food – Wholesale – 0.22%
14,696	Flowers Foods, Incorporated†		402,523
Forestry – 0.09%
6,628	Deltic Timber Corporation		158,409
Furniture And Fixtures – 0.69%
6,453	Bassett Furniture Industry Incorporated		67,757
19,526	BE Aerospace Incorporated†		37,099
21,013	Ethan Allen Interiors Incorporated		618,413
31,551	La-Z-Boy Incorporated		545,201
			1,268,470
General Merchandise Stores – 0.56%
27,620	Casey's General Stores		328,678
14,276	Fred's Incorporated		397,587
16,092	Shopko Stores Incorporated†		187,472
23,093	Stein Mart Incorporated†		117,774
			1,031,511

182

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Health Services – 2.35%
26,466	Accredo Health Incorporated†	$	644,156
11,429	Amsurg Corporation†		288,011
5,448	Chemed Corporation		172,647
10,888	CryoLife Incorporated†		74,583
6,669	Curative Health Services†		113,907
15,835	Enzo Biochem Incorporated†		206,963
35,806	Hooper Holmes Incorporated		179,030
9,083	IMPATH Incorporated†		122,621
18,110	Nautilus Group Incorporated†		258,249
28,442	Orthodontic Centers America†		148,183
14,039	Pediatrix Medical Group†		352,940
27,024	Province Healthcare Company†		239,162
8,812	Rehabcare Group Incorporated†		157,294
26,922	Renal Care Group Incorporated†		839,428
16,436	Sierra Health Services†		212,024
12,379	Sunrise Assisted Living†		297,096
			4,306,294
Heavy Construction Other Than Building Construction Contracts – 0.16%
13,281	Valmont Industries		286,870
Holding And Other Investment Offices – 2.40%
7,016	4 Kids Entertainment Incorporated†		82,789
15,564	Capital Automotive		388,166
12,566	Colonial Properties Trust		415,683
21,784	Community First Bankshares Incorporated		556,581
28,411	Cullen/Frost Bankers, Incorporated		863,126
10,158	Essex Property Trust Incorporated		530,756
13,538	Gables Residential Trust†		362,277
15,415	Glenborough Realty Trust		238,316
15,278	Kilroy Realty Corporation		337,644
19,871	Shurgard Storage Centers		616,994
			4,392,332
Home Furniture, Furnishings, And Equipment Stores – 0.58%
10,931	Bell Microproducts Incorporated†		55,857
12,110	Cost Plus Incorporated†		318,735
12,091	Haverty Furniture Incorporated		129,978
24,517	Linens ’n Things Incorporated†		498,185
8,111	Ultimate Electronics Incorporated†		64,484
			1,067,239
Hotels, Rooming Houses, Camps, & Other Lodge Places – 0.34%
20,119	Aztar Corporation†		270,198
16,349	Marcus Corporation		222,346
25,085	Prime Hospitality Corporation†		130,693
			623,237

183

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Industrial & Commercial Machinery & Computer Equipment – 5.27%
10,946	Astec Industries Incorporated†	$	63,596
54,665	Axcelis Technologies Incorporated†		258,565
10,738	Black Box Corporation		318,167
12,042	Briggs & Stratton Corporation		467,711
20,349	Brooks Automation Incorporated†		196,775
9,620	Dril-Quip Incorporated†		131,505
8,904	Engineered Support System		348,592
16,487	Fedders Corporation		54,242
8,544	Flow International Corporation†		17,088
8,849	Gardner Denver Incorporated†		162,822
11,817	Global Imaging Systems†		218,615
25,262	Graco Incorporated		709,860
12,522	Hydril Company†		312,925
18,082	Idex Corporation		524,378
16,706	Kaydon Corporation		314,407
27,587	Kulicke & Soffa Industries†		131,038
32,141	Lennox International Incorporated		462,830
6,527	Lindsay Manufacturing Company		140,331
14,680	Manitowoc Company		246,771
9,658	Micros Systems Incorporated†		227,060
18,773	Milacron Incorporated		77,908
17,294	Nyfix Incorporated†		64,161
21,853	Paxar Corporation†		250,217
7,759	Planar Systems Incorporated†		91,246
14,583	Rainbow Technologies Incorporated†		137,518
7,982	Robbins & Myers Incorporated		107,438
8,731	SCM Microsystems Incorporated†		21,828
15,849	Stewart & Stevenson Services		172,754
9,513	Thomas Industries, Incorporated		235,922
47,540	Timken Company		742,575
6,930	Toro Company		485,447
12,586	Ultratech Stepper Incorporated†		150,654
14,256	Watsco Incorporated		195,022
15,028	W-H Energy Services Incorporated†		257,279
6,222	Woodward Governor Company		217,708
17,354	Zebra Technologies Corporation†		1,117,598
			9,632,553
Insurance Agents, Brokers And Service – 0.29%
16,985	Hilb, Rogal & Hamilton Company		530,611
Insurance Carriers – 2.25%
11,364	AMERIGROUP Corporation†		332,511
41,858	Fremont General Corporation		290,913
10,133	LandAmerica Financial Group Incorporated		402,787
26,625	Mid Atlantic Medical Services†		1,079,644

184

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Insurance Carriers (continued)
11,993	Philadelphia Cons Holding	$	431,748
16,318	Presidential Life Corporation		102,640
13,728	RLI Corporation		368,871
5,466	Scpie Holdings Incorporated		34,108
14,701	Selective Insurance Group		360,763
9,861	Stewart Information Services†		228,874
26,801	UICI†		257,558
10,436	Zenith National Insurance		223,851
			4,114,268
Leather And Leather Products – 0.58%
9,820	Brown Shoe Company Incorporated		265,827
12,069	Genesco Incorporated†		171,621
9,912	K-Swiss Incorporated		253,252
22,531	Wolverine World Wide		377,394
			1,068,094
Legal Services – 0.10%
10,574	Pre-Paid Legal Services†		182,719
Lumber & Wood Products, Except Furniture – 0.23%
28,342	Champion Enterprises Incorporated†		52,149
8,806	Coachmen Industries, Incorporated		96,866
4,667	Skyline Corporation		121,809
9,867	Universal Forest Products		152,938
			423,762
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 7.60%
15,979	Advanced Medical Optics†		214,918
18,031	American Medical Systems†		260,548
7,393	Analogic Corporation		336,906
16,386	Armor Holdings Incorporated†		163,860
11,662	Arthrocare Corporation†		145,425
8,115	BEI Technologies Incorporated		78,716
8,247	Biosite Incorporated†		316,767
16,268	Coherent Incorporated†		305,025
11,627	Cohu Incorporated		170,103
15,529	Concord Camera Corporation†		77,800
15,943	CONMED Corporation†		261,625
17,192	Cooper Companies Incorporated		514,041
9,247	Cuno Incorporated†		310,977
8,215	Datascope Corporation		222,462
12,472	DRS Technologies Incorporated†		311,925
10,950	EDO Corporation		198,195
11,574	Esterline Technologies Company†		195,716
18,131	FEI Company†		289,371
9,437	FLIR Systems Incorporated†		447,408

185

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods (continued)
25,764	Fossil Incorporated†	$	443,656
13,483	Haemonetics Corporation/Mass†		294,601
10,916	Hologic Incorporated†		93,998
7,868	ICU Medical Incorporated†		216,457
12,169	Inamed Corporation†		435,285
28,437	Input/Output Incorporated†		102,373
15,056	Integra LifeSciences Holding†		346,288
9,173	Intermagnetics General Corporation†		163,646
16,620	Invacare Corporation		523,364
9,417	Invision Technologies Incorporated†		211,600
9,764	Ionics Incorporated†		161,594
11,222	Itron Incorporated†		187,520
8,606	Keithley Instruments Incorporated		93,031
38,597	Kopin Corporation†		194,529
11,005	Meade Instruments Corporation†		29,383
25,791	Mentor Corporation		441,284
9,450	Osteotech Incorporated†		58,874
8,855	Photon Dynamics Incorporated†		144,868
34,733	Pinnacle Systems Incorporated†		361,571
6,882	PolyMedica Corporation		209,557
9,614	Possis Medical Incorporated†		155,362
18,391	ResMed Incorporated†		588,144
18,692	Respironics Incorporated†		642,463
17,448	Roper Industries Incorporated		503,375
9,084	Rudolph Technologies Incorporated†		131,264
13,682	Sola International Incorporated†		169,110
21,152	Sybron Dental Specialties†		369,102
23,104	Techne Corporation†		477,560
17,899	Teledyne Technologies Incorporated†		226,601
16,555	Theragenics Corporation†		57,280
16,174	Trimble Navigation Limited†		306,336
16,210	Veeco Instruments Incorporated†		250,282
14,581	Viasys Healthcare Incorporated†		204,134
7,228	Vital Signs Incorporated		191,903
11,250	X-Rite Incorporated		94,613
			13,902,796
Membership Organizations – 0.25%
11,458	Delphi Financial Group Incorporated Class A		448,924
Metal Mining – 0.12%
9,254	Brush Engin Materials		46,918
5,669	Cleveland-Cliffs Incorporated		105,727
24,201	Stillwater Mining Company†		60,502
			213,147

186

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Mining & Quarrying Of Nonmetallic Minerals, Except Fuels – 0.29%
15,888	Florida Rock Industries	$	537,809
Miscellaneous Manufacturing Industries – 0.49%
8,484	Cross A T Company†		40,384
13,560	JAKKS Pacific Incorporated†		140,482
9,979	K2 Incorporated†		77,038
8,910	Lydall Incorporated†		78,408
11,389	Russ Berrie & Company Incorporated		364,448
9,379	Shuffle Master Incorporated†		188,996
			889,756
Miscellaneous Repair Services – 0.00%
3,564	Timco Aviation Services Incorporated†		1,069
Miscellaneous Retail – 0.86%
9,924	Action Performance Companies		209,893
13,582	Cash America International Incorporated		128,757
13,322	Duane Reade Incorporated†		168,923
10,535	Hancock Fabrics Incorporated		146,437
10,845	J Jill Group Incorporated†		125,802
10,843	Jo-Ann Stores Incorporated†		216,860
17,849	Zale Corporation†		584,376
			1,581,048
Motion Pictures – 0.18%
14,756	Avid Technology Incorporated†		326,698
Motor Freight Transportation And Warehousing – 1.52%
13,865	Arkansas Best Corporation		352,448
11,924	Forward Air Corporation†		259,478
27,814	Heartland Express Incorporated†		533,473
8,799	Landstar System Incorporated†		505,943
10,766	Roadway Corporation		360,876
14,987	USFreightways Corporation		379,320
16,344	Yellow Corporation†		394,381
			2,785,919
Non-Depository Credit Institutions – 0.34%
13,867	New Century Financial		432,387
10,331	Financial Federal Corporation†		197,322
			629,709
Non-Durable Goods – Consumer – 0.10%
21,941	Stride Rite Corporation		186,499
Oil And Gas Extraction – 4.05%
7,701	Atwood Oceanics Incorporated†		194,373
17,876	Cabot Oil & Gas Corporation		429,024

187

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Oil And Gas Extraction (continued)
20,764	Cal Dive International Incorporated†	$	373,960
22,645	Cimarex Energy Company†		440,445
10,564	Evergreen Resources Incorporated†		478,653
28,704	Newfield Exploration Company†		972,779
10,669	Nuevo Energy Company†		144,565
13,773	Oceaneering International†		300,940
15,140	Patina Oil & Gas Corporation†		498,106
13,348	Plains Resources Incorporated†		142,423
7,098	Prima Energy Corporation†		133,017
14,593	Remington Oil & Gas Corporation†		248,519
11,092	SEACOR SMIT Incorporated†		388,220
15,538	St Mary Land & Exploration		389,227
14,651	Stone Energy Corporation†		491,981
15,127	Swift Energy Company†		128,731
7,885	Tetra Technology Incorporated†		181,355
21,830	Tom Brown Incorporated†		528,286
24,108	Unit Corporation†		489,151
18,555	Veritas DGC Incorporated†		123,391
35,224	Vintage Petroleum Incorporated		334,628
			7,411,774
Oil Refining & Marketing – 0.20%
18,535	Spinnaker Exploration Company†		359,950
Paper And Allied Products – 0.48%
20,567	Buckeye Technologies Incorporated†		97,693
15,525	Caraustar Industries Incorporated		105,105
8,433	Chesapeake Corporation		142,433
8,699	Pope & Talbot Incorporated		109,172
19,149	Rock-Tenn Company		245,107
8,301	Schweitzer Manduit International, Incorporated		186,773
			886,283
Personal Services – 0.67%
4,840	Angelica Corporation		82,522
12,251	Coinstar Incorporated†		205,694
4,474	CPI Corporation		58,744
11,533	G & K Services Incorporated		276,792
24,246	Regis Corporation		603,968
			1,227,720
Petroleum Refining And Related Industries – 0.37%
10,845	ELK Corporation		206,055
14,543	Frontier Oil Corporation		248,685
9,214	WD-40 Company		228,508
			683,248

188

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Primary Metal Industries – 1.73%
13,878	Belden Incorporated	$	149,189
11,434	Century Aluminum Company		72,606
8,899	Commonwealth Industries		43,961
5,700	Curtiss-Wright Corporation		344,850
8,426	Imco Recycling Incorporated†		53,505
15,850	Lone Star Technologies†		334,752
23,184	Maverick Tube Corporation†		431,222
19,055	Mueller Industries Incorporated†		475,803
9,027	Quanex Corporation		286,156
11,557	RTI International Metals Incorporated†		113,259
26,455	Steel Dynamics Incorporated†		308,201
5,429	Steel Technologies Incorporated		48,649
11,710	Texas Industries Incorporated		225,183
21,324	Tredegar Corporation		254,822
6,820	Wolverine Tube Incorporated†		30,622
			3,172,780
Printing, Publishing, & Allied Industries – 0.76%
18,666	Bowne & Company Incorporated		186,660
7,414	Consolidated Graphics Incorporated†		124,630
16,362	Harland (John H ) Company		397,760
12,136	Information Holdings Incorporated†		195,390
7,220	New England Business Service		184,832
15,657	Standard Register Company		233,289
7,993	Thomas Nelson Incorporated		68,020
			1,390,581
Railroad Transportation – 0.21%
33,909	Kansas City Southern		380,798
Rubber & Miscellaneous Plastics Products – 0.13%
16,394	Schulman (A) Incorporated		238,205
Security & Commodity Brokers, Dealers, Exchanges & Services – 0.75%
14,961	Jefferies Group, Incorporated		537,848
27,398	Raymond James Financial		708,786
9,428	SWS Group Incorporated		132,746
			1,379,380
Stone, Clay, Glass, & Concrete Products – 0.39%
15,327	Apogee Enterprises Incorporated		126,003
8,556	Carbo Ceramics Incorporated		281,065
7,409	Libbey Incorporated		182,261
6,675	Standex International Corporation		127,159
			716,488

189

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Textile Mill Products – 0.33%
17,996	Albany International Corporation	$	412,288
28,480	Interface Incorporated		93,985
4,182	Oxford Industries Incorporated		103,086
			609,359
Transportation By Air – 0.48%
25,141	Atlantic Coast Airlines†		156,126
16,498	Frontier Airlines Incorporated†		81,995
17,571	Mesa Air Group Incorporated†		87,328
12,517	Offshore Logistics Incorporated†		225,932
32,067	Skywest Incorporated		330,610
			881,991
Transportation Equipment – 2.12%
17,714	AAR Corporation		66,959
12,279	Arctic Cat Incorporated		191,675
13,859	Clarcor Incorporated		501,696
19,990	Fleetwood Enterprises Incorporated		81,159
24,082	Gencorp Incorporated		150,513
12,511	Group 1 Automotive Incorporated†		267,735
8,161	Huffy Corporation		40,152
14,242	Intermet Corporation		51,841
23,916	JIG Industries Incorporated		112,884
16,059	Monaco Coach Corporation†		166,371
9,258	Oshkosh Truck Corporation		576,773
12,635	Polaris Industries Incorporated		628,212
6,985	Standard Motor Products		77,534
15,901	Thor Industries Incorporated		398,002
8,819	Triumph Group Incorporated†		197,987
14,265	Wabash National Corporation†		89,870
10,447	Winnebago Industries		284,158
			3,883,521
Transportation Services – 0.08%
13,685	Pegasus Solutions Incorporated†		153,272
Water Transportation – 0.18%
13,387	Kirby Corporation†		329,320
Wholesale Trade Non-Durable Goods – 1.91%
24,883	Dimon Incorporated		142,580
7,726	Enesco Group Incorporated†		55,395
18,946	Hain Celestial Group Incorporated†		286,274
10,662	International Multifoods		205,990
22,091	Men's Wearhouse Incorporated†		330,481
16,721	Myers Industries Incorporated		159,686
6,633	Nash Finch Company		55,916

190

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP INDEX PORTFOLIO

Shares	Security Name	Value
Wholesale Trade Non-Durable Goods (continued)
25,119	Performance Food Group Company†	$	770,149
24,171	Priority Healthcare Corporation†		644,157
10,253	School Specialty Incorporated†		182,196
10,631	United Natural Foods Incorporated†		271,090
18,064	United Stationers Incorporated†		385,666
			3,489,580
Wholesale Trade – Durable Goods – 1.91%
10,600	Advanced Marketing Services, Incorporated		118,613
10,561	Applied Industrial Technologies		176,474
7,307	Building Materials Holding		97,256
8,788	Castle (A M) & Company		41,743
7,273	Department 56†		71,421
11,813	Digi International Incorporated†		38,392
13,229	Hughes Supply Incorporated		308,103
10,127	Imagistics International Incorporated†		188,565
25,629	Insight Enterprises Incorporated†		180,684
12,110	Kaman Corporation		118,436
20,639	Knight Transportation Incorporated†		406,382
5,287	Lawson Products		137,832
18,974	Owens & Minor Incorporated		332,994
28,683	Pep Boys-Manny Moe & Jack		217,991
17,789	Pioneer Standard Electronics		150,139
17,663	Reliance Steel & Aluminum		266,711
13,803	Ryerson Tull Incorporated		86,269
12,939	SCP Pool Corporation†		384,418
11,822	TBC Corporation†		165,508
			3,487,931
Total Common Stock (Cost $ 195,233,118)			165,524,655

191

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP INDEX PORTFOLIO

Principal		Security Name			Interest Rate		Maturity Date	Value
Short-Term Investments – 9.01%
Repurchase Agreements – 8.01%
$	14,652,150	Goldman Sachs Repurchase Agreement – 102% Collateralized by US Government Securities			1.42	%	04/01/2003	$	14,652,150
US Government – 1.00%
	90,000	UST Bill, Due 4/3/03#			1.47	ª	04/10/2003		89,966
	820,000	UST Bill, Due 6/5/03#			1.14	ª	06/05/2003		818,348
	75,000	UST Bill, Due 8/21/03#			1.16	ª	08/21/2003		74,669
	50,000	UST Bill, Due 4/3/03#			1.58	ª	04/10/2003		49,980
	200,000	UST Bill, Due 4/3/03#			1.60	ª	04/10/2003		199,920
	50,000	UST Bill, Due 6/5/03#			1.13	ª	06/05/2003		49,900
	40,000	UST Bill, Due 6/5/03#			1.13	ª	06/05/2003		39,919
	25,000	UST Bill, Due 6/5/03#			1.14	ª	06/05/2003		24,950
	485,000	UST Bill, Due 8/21/03#			1.16	ª	08/21/2003		482,857
									1,830,509
Total Short-Term Investments (Cost $16,477,478)
Total Investments In Securities (Cost $211,710,596)*			99.49	%				$	182,007,314
Other Assets And Liabilities, Net			0.51						934,767
Total Net Assets			100.00	%				$	182,942,081

† Non income earning securities.

# Securities pledged as collateral for futures transactions.

ª Yield to Maturity.

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized depreciation consist of:

Gross Unrealized Appreciation	$	17,882,048
Gross Unrealized Depreciation		(47,585,330	)
Net Unrealized Depreciation	$	(29,703,282	)

The accompanying notes are an integral part of these financial statements.

192

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP VALUE PORTFOLIO

Shares	Security Name	Value
Common Stock – 96.02%
Amusement And Recreation Services – 3.74%
12,837	Alliance Gaming Corporation†	$	192,555
Apparel & Other Finished Products Made From Fabrics & Similar Materials – 2.57%
4,580	Kellwood Company		132,545
Apparel And Accessory Stores – 1.56%
3,580	Urban Outfitters Incorporated†		80,550
Automotive Dealers And Gasoline Service Stations – 0.40%
1,662	Lithia Motors Incorporated†		20,443
Building Construction – General Contractors & Operative Builders – 13.04%
1,515	Beazer Homes USA Incorporated†		89,095
2,330	Hovnanian Enterprises Incorporated†		80,502
4,254	MDC Holdings, Incorporated		163,269
474	NVR Incorporated†		155,946
4,230	Ryland Group		182,694
			671,506
Business Services – 1.76%
1,782	Fair Isaac Corporation		90,561
Chemicals And Allied Products – 5.02%
9,539	NBTY Incorporated†		180,859
7,415	RPM International		77,858
			258,717
Depository Institutions – 11.40%
972	Anchor Bancorporation Wisconsin		21,334
2,213	Bankatlantic Bancorporation Incorporated		21,665
4,818	Commercial Federal Corporation		104,647
3,309	Community First Bankshare		84,545
2,511	Dime Community Bancshares		57,326
935	First Essex Bancorporation Incorporated		29,004
3,743	Flagstar Bancorporation Incorporated		98,703
1,109	Independent Bank Corporation		22,291
4,314	R & G Financial Corporation†		94,908
1,848	Wintrust Financial Corporation		52,853
			587,276
Eating And Drinking Places – 0.26%
812	Landry’s Restaurant Incorporated		13,642
Educational Services – 3.68%
4,794	Corinthian Colleges Incorporated†		189,363

193

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL CAP VALUE PORTFOLIO

Shares	Security Name	Value
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 1.89%
1,954	Benchmark Electronics Incorporated†	$	55,357
1,372	Moog Incorporated†		41,983
			97,340
Engineering, Accounting, Research Management & Related Services – 0.57%
2,245	Right Management Consult†		29,163
Food And Kindred Products – 2.54%
5,769	Constellation Brands Incorporated†		130,956
Health Services – 13.12%
6,330	Coventry Health Care Incorporated†		208,256
6,336	Curative Health Services†		108,219
8,045	Davita Incorporated†		166,773
3,006	Pediatrix Medical Group†		75,571
4,666	Sierra Health Services†		60,191
2,362	Sunrise Assisted Living†		56,688
			675,698
Holding And Other Investment Offices – 1.43%
2,735	Impac Mortgage Holdings I		35,527
1,110	Novastar Financial Incorporated		37,907
			73,434
Hotels, Rooming Houses, Camps, & Other Lodge Places – 1.89%
4,002	Choice Hotels International†		97,569
Industrial & Commercial Machinery & Computer Equipment – 3.08%
4,047	Engineered Support System		158,440
Insurance Agents, Brokers And Service – 1.35%
2,215	Brown & Brown Incorporated		69,352
Insurance Carriers – 5.68%
2,460	American Medical Security†		32,570
5,232	Mid Atlantic Medical Services†		212,158
2,063	Stewart Information Services†		47,882
			292,610
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 1.92%
2,294	Cooper Companies Incorporated		68,591
3,700	Healthtronics Surgical†		30,229
			98,820
Miscellaneous Retail – 1.18%
128	AC Moore Arts & Crafts†		1,770
3,280	Sharper Image Corporation†		59,073
			60,843

194

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL CAP VALUE PORTFOLIO

Shares	Security Name	Value
Non-Depository Credit Institutions – 8.37%
7,567	Doral Financial Corporation	$	267,494
5,240	New Century Financial		163,388
			430,882
Oil And Gas Extraction – 1.08%
5,150	Denbury Resources Incorporated†		55,775
Primary Metal Industries – 1.24%
2,020	Quanex Corporation		64,034
Transportation Equipment – 2.91%
3,889	American Axle & MFG Holdings†		81,824
1,095	Oshkosh Truck Corporation		68,219
			150,043
Wholesale Trade-Durable Goods – 1.02%
6,884	PEP Boys-Manny Moe & Jack		52,318
Wholesale Trade Non-Durable Goods – 3.31%
2,815	Fresh Del Monte Produce		42,929
1,847	Standard Commercial Corporation		28,979
2,980	Tractor Supply Company†		98,400
			170,308
Total Common Stock (cost $3,980,576)			4,944,743

Principal				Interest Rate		Maturity Date
Short-Term Investments – 3.13%
Repurchase Agreements – 3.13%
$161,413	Credit Suisse First Boston Repurchase – 102% Collaterized by US Government Securities			1.37	%	04/01/2003		161,413
Total Short-Term Investments (Cost $ 161,413)
Total Investments in Securities (Cost $4,141,989)*		99.15	%				$	5,106,156
Other Assets And Liabilities, Net		0.85						43,925
Total Net Assets		100.00	%				$	5,150,081

† Non income earning securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized appreciation consist of:

Gross Unrealized Appreciation	$	1,221,763
Gross Unrealized Depreciation		(257,596	)
Net Unrealized Appreciation	$	964,167

The accompanying notes are an integral part of these financial statements.

195

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL COMPANY GROWTH PORTFOLIO

Shares	Security Names	Value
Common Stock – 97.36%
Accident & Health Insurance – 0.46%
216,500	SCS Transportation Incorporated†	$	2,290,570
Advertising Agency – 1.10%
503,200	Agrium Incorporated		5,409,400
Apparel And Accessory Stores – 2.06%
162,200	AnnTaylor Stores Corporation†		3,329,966
212,100	Christopher & Banks Corporation†		3,754,170
150,000	Pacific Sunwear Of California†		3,052,500
			10,136,636
Automotive Dealers And Gasoline Service Stations – 1.46%
91,200	Advance Auto Parts†		4,218,000
329,200	CSK Auto Corporationoration†		2,995,720
			7,213,720
Auto Parts & Accessories – 0.31%
258,000	PMC-Sierra Incorporated†		1,535,100
Banking – 1.17%
313,700	W Holding Company Incorporated		5,759,532
Business Services – 11.56%
318,800	Autodesk Incorporated		4,864,888
543,800	Doubleclick Incorporated†		4,225,326
199,900	Electronics For Imaging†		3,536,031
106,900	Hyperion Solutions Corporation†		2,592,325
174,800	Macromedia Incorporated†		2,111,584
139,300	Mantech International†		2,064,287
369,100	NETIQ Corporation†		4,119,156
254,800	Pittston Brink's Group		3,531,528
99,600	Pixar Incorporated†		5,386,368
112,600	Possis Medical Incorporated†		1,819,616
333,400	Progress Software Corporation†		5,984,530
891,800	Red Hat Incorporated†		4,842,474
280,400	Serena Software Incorporated†		4,475,464
175,000	Steiner Leisure Limited†		1,977,500
319,400	United Online Incorporated†		5,506,456
			57,037,533
Chemicals And Allied Products – 7.97%
90,150	Barr Laboratories Incorporated†		5,138,550
408,500	Biomarin Pharmaceuticals†		4,636,475
427,500	Cell Therapeutics Incorporated†		3,543,975
147,700	Intermune Incorporated†		3,168,165
637,100	Ivax Corporation†		7,804,475
381,800	NBTY Incorporated†		7,238,928

196

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL COMPANY GROWTH PORTFOLIO

Shares	Security Names	Value
Chemicals And Allied Products (continued)
153,100	Neurocrine Biosciences†	$	6,396,518
139,000	Sangstat Medical Corporation†		1,363,590
			39,290,676
Communications – 1.57%
255,000	Lin TV Corporation†		5,230,050
319,800	Sinclair Broadcast Group†		2,513,628
			7,743,678
Construction Special Trade Contractors – 1.34%
293,600	Chicago Bridge & Iron Company NV		4,768,064
177,300	Dycom Industries Incorporated†		1,831,509
			6,599,573
Data Services – 1.11%
608,700	WebMD Corporation*†		5,490,474
Depository Institutions – 1.28%
209,900	FirstFed Financial Corporation†		6,336,881
Drugs – 0.97%
253,700	The Medicines Company†		4,728,968
Electric, Gas, And Sanitary Services – 1.24%
177,900	Waste Connections Incorporated†		6,137,550
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 5.73%
122,400	Benchmark Electronics Incorporated†		3,467,592
378,900	DSP Group Incorporated†		6,869,457
212,800	Micrel Incorporated†		1,962,016
104,300	Novellus Systems Incorporated†		2,844,261
413,000	Perkinelmer Incorporated		3,671,570
97,100	QLogic Corporation†		3,606,294
137,600	Silicon Laboratories Incorporated†		3,598,240
101,600	Silicon Image Incorporated†		404,368
293,800	Skyworks Solutions Incorporated†		1,830,374
			28,254,172
Engineering, Accounting, Research Management & Related Services – 7.18%
245,200	Affymetrix Incorporated†		6,375,200
180,700	Amylin Pharmaceuticals†		2,927,340
230,400	Antigenics Incorporated†		1,910,016
643,400	Bearingpoint Incorporated†		4,098,458
127,600	Cephalon Incorporated†		5,096,344
374,300	Kroll Incorporated†		8,013,763
98,300	Pharmaceutical Product Development Incorporated†		2,639,453
1,424,400	UnitedGlobalCom Incorporated†		4,344,420
			35,404,994

197

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL COMPANY GROWTH PORTFOLIO

Shares	Security Names	Value
Entertainment – 0.73%
201,600	Regal Entertainment Group Class A	$	3,618,720
Health Services – 7.29%
203,200	Accredo Health Incorporated†		4,945,685
343,100	Caremark RX Incorporated†		6,227,265
292,600	Community Health Systems†		5,995,374
119,300	Inveresk Research Group†		1,735,815
251,600	Lincare Holdings Incorporated†		7,721,604
289,000	Manor Care Incorporated†		5,557,470
150,100	Pediatrix Medical Group†		3,773,514
			35,956,727
Holding And Other Investment Offices – 0.80%
94,900	Affiliated Managers Group†		3,944,993
Hotels, Rooming Houses, Camps, & Other Lodge Places – 0.82%
192,000	Station Casinos Incorporated†		4,053,120
Home Furniture, Furnishings, And Equipment Stores – 0.97%
235,500	Guitar Center Incorporated†		4,797,135
Industrial & Commercial Machinery & Computer Equipment – 1.75%
774,400	Cray Incorporated†		5,126,528
624,700	Maxtor Corporation†		3,517,061
			8,643,589
Insurance Carriers – 6.20%
164,390	IPC Holdings Limited		4,946,495
140,120	Scottish Annuity & Life		2,440,890
171,250	Berkley (WR) Corporation		7,338,063
219,900	Cobalt Corporation		3,177,555
239,400	HCC Insurance Holdings		6,119,064
268,100	Selective Insurance Group		6,579,174
			30,601,241
Leather And Leather Products – 0.54%
264,700	Nu Skin Asia Pacific Incorporated A		2,665,529
Leisure, Sporting & Recreation – 0.96%
267,100	Penn National Gami†		4,741,025
Lumber & Wood Products, Except Furniture – 1.24%
773,100	Louisiana Pacific Corporation		6,130,683
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 4.16%
85,300	Advanced Neuromod Systems†		3,659,370
105,800	American Medical Systems Holdings Incorporated†		1,528,810
264,600	Cyberonics Incorporated†		5,659,794
203,600	Sonosite Incorporated†		3,196,520

198

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL COMPANY GROWTH PORTFOLIO

Shares	Security Name	Value
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods (continued)
555,000	Teradyne Incorporated†	$	6,460,200
			20,504,694
Medical Equipment & Supplies – 1.35%
243,900	Omnicare Incorporated		6,636,519
Motor Freight Transportation And Warehousing – 1.52%
278,100	Hunt (JB) Transport Services		7,486,452
Newspapers – 0.89%
216,100	Belo (AH) Corporation		4,378,186
Non-Depository Credit Institutions – 1.06%
393,100	Saxon Capital Incorporated†		5,232,161
Oil & Gas Exploration – 0.89%
496,500	Ultra Petroleum Corporation†		4,384,095
Oil & Gas Extraction – 2.77%
79,000	Evergreen Resources Incorporated†		3,579,490
271,800	Pioneer Natural Resources†		6,822,180
137,900	Quicksilver Resources Incorporated†		3,277,883
			13,679,553
Other – 2.22%
1,327,200	Atmel Corporation†		2,123,520
154,500	Furniture Brands International Incorporated†		3,022,020
461,000	Pet Smart†		5,808,600
			10,954,140
Other Services – 1.31%
416,700	VCA Antech Incorporated†		6,446,349
Paper And Allied Products – 0.64%
318,700	Domtar Incorporated		3,139,195
Petroleum Refining And Related Industries – 0.81%
96,600	Valero Energy New		3,997,308
Primary Metal Industries – 1.34%
148,000	Maverick Tube Corporation†		2,752,800
100,900	Nucor Corporation		3,851,353
			6,604,153
Printing, Publishing, And Allied Industries – 1.17%
551,500	Moore Corporation Limited		5,774,205
Railroad Transportation – 0.85%
375,200	Kansas City Southern		4,213,496

199

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL COMPANY GROWTH PORTFOLIO

Shares	Security Name	Value
Security And Commodity Brokers, Dealers, Exchanges & Services – 0.61%
607,200	Ameritrade Holding Corporation†	$	3,011,712
Semiconductors – 1.04%
235,700	Integrated Circuit Systems†		5,114,690
Transportation Services – 1.35%
161,200	Platinum Underwriters Holdings Limited		4,086,420
205,100	Pacer International Incorporated†		2,569,903
			6,656,323
Trucking – 1.34%
217,700	Consolidated Freightways Incorporated		6,628,965
US Banks – 0.19%
114,100	Gold Banc Corporation Incorporated		913,941
Water Transportation – 0.99%
1,041,800	OMI Corporation†		4,896,460
Wholesale Trade – Durable Goods – 1.06%
727,100	Danka Business Systems		2,573,934
241,200	Ingram Micro Incorporated†		2,660,436
34,856	Timco Aviation Services Paid-In-Kind†		2,440
11,316	Timco Aviation Services Incorporated†		3,395
36,152	Timco – 02/27/07†		5
			5,240,210
Wholesale Trade Non-Durable Goods – 1.99%
219,600	Priority Healthcare Corporation†		5,852,340
223,600	School Specialty Incorporated†		3,973,372
			9,825,712
Total Common Stock (Cost $452,686,944)			480,240,738

Principal					Interest Rate		Maturity Date
Short-Term Investments – 3.88%
Repurchase Agreements – 3.88%
$	19,123,847	Credit Suisse First Boston – 102% Collateralized by US Government Securities			1.37	%	04/01/2003		19,123,847
Total Short-Term Investments (Cost $19,123,847)									19,123,847
Total Investments in Securities (Cost $471,810,791)*			101.24	%				$	499,364,585
Other Assets and Liabilities, Net			(1.24	)					(6,128,457	)
			100.00	%				$	493,236,128

† Non Income producing securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized appreciation consist of:

Gross Unrealized Appreciation	$	49,794,040
Gross Unrealized Depreciation		(22,240,246	)
Net Unrealized Appreciation	$	27,553,794

The accompanying notes are an integral part of these financial statements.

200

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL COMPANY VALUE PORTFOLIO

Shares	Security Name	Value
Common Stock – 95.95%
Apparel And Accessory Stores – 2.54%
138,440	American Eagle Outfitters†	$	2,010,011
109,600	Too Incorporated†		1,820,456
68,230	Urban Outfitters Incorporated†		1,535,175
			5,365,642
Automotive Repair, Services, And Parking – 1.18%
149,646	Dollar Thrifty Automotive†		2,491,606
Building Construction-General Contractors & Operative Builders – 1.00%
200,850	WCI Communities Incorporated†		2,100,891
Business Services – 6.94%
113,500	Activision Incorporated†		1,640,076
210,500	Earthlink Incorporated†		1,210,375
181,100	Intergraph Corporation†		3,140,274
480,610	MPS Group Incorporated†		2,508,784
138,410	NCO Group Incorporated†		2,006,945
252,420	Rent-Way Incorporated†		908,712
129,200	THQ Incorporated†		1,689,936
160,320	United Rentals Incorporated†		1,542,278
			14,647,380
Chemicals And Allied Products – 5.33%
206,610	Agrium Incorporated		2,221,058
93,710	Albany Molecular Research†		1,397,216
272,320	Crompton Corporation		1,102,896
124,260	HB Fuller Company		2,872,891
125,782	NL Industries		2,025,090
295,250	USEC Incorporated		1,623,875
			11,243,026
Communications – 0.77%
96,140	Emmis Communications Corporation†		1,622,843
Construction Special Trade Contractors – 1.93%
164,908	Dycom Industries Incorporated†		1,703,500
175,700	Insituform Technologies†		2,363,165
			4,066,665
Depository Institutions – 8.53%
241,046	Brookline Bancorp Incorporated		3,017,897
88,560	Cullen/Frost Bankers Incorporated		2,690,453
157,400	First Niagara Financial Group Incorporated		1,849,607
103,460	First Republic Bank†		2,234,736
175,530	Gold Banc Corporation Incorporated		1,405,995
49,500	PFF Bancorp Incorporated		1,588,455
155,330	Provident Financial Services†		2,455,767

201

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL COMPANY VALUE PORTFOLIO

Shares	Security Name	Value
Depository Institutions (continued)
167,380	Tier One Corporation†	$	2,753,401
			17,996,311
Electric, Gas, And Sanitary Services – 3.68%
109,030	Allete Incorporated		2,263,462
100,800	Energen Corporation		3,231,648
49,835	UGI Corporation		2,277,460
			7,772,570
Electronic And Other Electrical Equipment & Components, Except Computer Equipment – 7.65%
177,903	Actel Corporation†		3,035,024
196,150	C&D Technologies Incorporated		2,349,877
140,400	Fairchild Semiconductor†		1,468,584
190,630	Plexus Corporation†		1,744,265
197,870	Technitrol Incorporated†		2,896,817
162,470	Tollgrade Communications†		2,331,445
179,540	Zoran Corporation†		2,317,861
			16,143,873
Engineering, Accounting, Research Management & Related Services – 0.85%
84,600	Maximus Incorporated†		1,795,212
Fabricated Metal Products, Except Machinery And Transportation Equipment – 0.39%
346,960	Tower Automotive Incorporated†		822,295
Food And Kindred Products – 0.49%
21,500	Adolph Coors Company		1,042,750
Food Stores – 0.74%
232,400	Pathmark Stores Incorporated†		1,552,432
General Merchandise Stores – 0.74%
201,690	Saks Incorporated†		1,550,996
Health Services – 1.66%
471,530	Beverly Enterprises Incorporated†		952,491
142,400	RehabCare Group Incorporated†		2,541,840
			3,494,331
Holding And Other Investment Offices – 8.37%
75,040	CBL & Associates Properties		3,045,874
93,600	Eastgroup Properties		2,392,415
163,180	Felcor Lodging Trust Incorporated		1,016,611
90,750	Gladstone Capital Corporation		1,459,260
125,580	Glenborough Realty Trust		1,941,467
94,950	Highwoods Properties Incorporated		1,940,778
106,910	Kilroy Realty Corporation		2,362,711
206,170	Lasalle Hotel Properties		2,463,732
303,100	Meristar Hospitality Corporation		1,033,571
			17,656,419

202

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL COMPANY VALUE PORTFOLIO

Shares	Security Name	Value
Home Furniture, Furnishings, And Equipment Stores – 0.92%
111,240	Movie Gallery Incorporated†	$	1,937,801
Hotels, Rooming Houses, Camps, & Other Lodge Places – 1.36%
147,800	Ameristar Casinos Incorporated†		1,584,416
94,900	Aztar Corporation†		1,274,507
			2,858,923
Industrial & Commercial Machinery & Computer Equipment – 6.92%
317,540	Computer Network Technology†		2,184,675
152,800	Flowserve Corporation†		1,780,120
183,200	Joy Global Incorporated†		1,984,056
311,520	Kulicke & Soffa Industries†		1,479,720
87,140	National-Oilwell Incorporated†		1,951,065
129,100	Robbins & Myers Incorporated		1,737,686
305,300	Unova Incorporated†		1,639,461
109,270	W-H Energy Services Incorporated†		1,870,702
			14,627,485
Insurance Carriers – 6.57%
149,320	Amerigroup Corporation†		4,369,103
111,098	Harleysville Group Incorporated		2,771,895
110,480	Pacificare Health Systems†		2,666,987
99,640	Platinum Underwriters Holdings		2,525,875
89,220	Scottish Annuity & Life		1,554,212
			13,888,072
Leather And Leather Products – 0.76%
113,460	Genesco Incorporated†		1,613,401
Measuring, Analyzing, & Controlling Instruments: Photographic, Medical & Optical Goods – 5.27%
58,200	Arrow International Incorporated		2,366,994
109,700	Coherent Incorporated†		2,056,875
46,170	ESCO Technologies Incorporated†		1,514,376
84,410	MKS Instruments Incorporated†		1,055,125
170,700	Rudolph Technologies Incorporated†		2,466,615
95,320	Sybron Dental Specialties†		1,663,334
			11,123,319
Membership Organizations – 0.19%
24,590	Alliant Energy Group		395,161
Miscellaneous Manufacturing Industries – 1.25%
221,690	Callaway Golf Company		2,633,677
Miscellaneous Retail – 1.20%
199,100	Duane Reade Incorporated†		2,524,588

203

MASTER PORTFOLIOS PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED)

SMALL COMPANY VALUE PORTFOLIO

Shares	Security Name	Value
Motor Freight Transportation And Warehousing – 0.79%
103,990	Swift Transportation Company†	$	1,663,840
Non-Depository Credit Institutions – 1.13%
109,620	Federal Agricultural Mortgage Corporation†		2,388,620
Oil And Gas Extraction – 0.93%
108,500	California Dive International Incorporated†		1,954,085
Packaged Foods – 0.73%
49,790	East West Bank – Private†		1,536,022
Paper And Allied Products – 1.80%
181,600	Buckeye Technologies Incorporated†		862,600
166,530	Caraustar Industries Incorporated†		1,127,408
143,800	Pope & Talbot Incorporated		1,804,690
			3,794,698
Primary Metal Industries – 3.10%
167,600	Lone Star Technologies†		3,539,712
64,180	Precision Castparts Corporation		1,529,409
127,630	Steel Dynamics Incorporated†		1,486,890
			6,556,011
Rubber And Miscellaneous Plastics Products – 2.02%
103,840	Schulman (A) Incorporated		1,508,795
141,832	Spartech Corporation		2,743,031
			4,251,826
Security And Commodity Brokers, Dealers, Exchanges & Services – 1.34%
36,310	Jefferies Group Incorporated		1,305,344
82,620	Labranche & Company Incorporated		1,518,556
			2,823,900
Textile Mill Products – 1.15%
87,460	Triarc Companies Incorporated†		2,435,761
Transportation By Air – 1.84%
336,680	Airtran Holdings Incorporated†		2,265,856
323,800	Frontier Airlines Incorporated†		1,609,286
			3,875,142
Transportation Equipment – 1.75%
92,450	Navistar International Corporation†		2,275,194
223,840	Wabash National Corporation†		1,410,192
			3,685,386

204

PORTFOLIO OF INVESTMENTS — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

SMALL COMPANY VALUE PORTFOLIO

Shares	Security Name	Value
Transportation Services – 0.42%
61,880	GATX Corporation	$	896,022
Wholesale Trade – Durable Goods – 0.82%
36,130	Borgwarner Incorporated		1,728,459
Wholesale Trade Non-Durable Goods – 0.9%
97,825	International Multifoods Corporation		1,889,979
Total Common Stock (Cost $227,223,368)			202,447,420

Principal					Interest Rate		Maturity Date
Short-Term Investments – 3.59%
Repurchase Agreements – 3.59%
$	7,570,042	Credit Suisse First Boston – 102% Collateralized by US Government Securities			1.37	%	04/01/2003		7,570,042
Total Short-Term Investments (Cost $7,570,042)									7,570,042
Total Investments In Securities (Cost $234,793,410)*			99.54	%				$	210,017,462
Other Assets And Liabilities, Net			0.46						972,684
Total Net Assets			100.00	%				$	210,990,146

† Non income earning securities

* Cost for federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized depreciation consist of:

Gross Unrealized Appreciation	$	7,059,936
Gross Unrealized Depreciation		(31,835,884	)
Net Unrealized Depreciation	$	(24,775,948	)

The accompanying notes are an integral part of these financial statements.

205

MASTER PORTFOLIOS STATEMENTS OF ASSETS AND LIABILITIES — MARCH 31, 2003 (UNAUDITED)

	Disciplined Growth		Equity Income		Index			International Equity
ASSETS
INVESTMENTS:
Investments at cost	$	52,884,363	$	1,561,060,034	$	1,292,017,845		$	511,570,629
Repurchase Agreement		1,467,105		4,095,696		27,405,826			45,612,682
Net unrealized appreciation (depreciation)		3,295,858		37,631,935		(100,491,019	)		(81,832,179	)
TOTAL INVESTMENTS AT VALUE		57,647,326		1,602,787,665		1,218,932,652			475,351,132
Cash		50,000		50,000		50,040			50,000
Cash Collateral for securities loaned		9,169,070		182,700,788		163,005,026			10,497,576
Receivable for investments sold		0		0		2,037,517			716,045
Receivable for dividends and interest		46,836		3,686,382		1,637,936			3,722,385
Prepaid expenses and other assets		0		0		0			0
TOTAL ASSETS		66,913,232		1,789,224,835		1,385,663,171			490,337,138
LIABILITIES
Payable for Fund shares redeemed		0		0		0			0
Payable for investment purchased		0		0		903,273			0
Payable for securities loaned		9,169,070		182,700,788		163,005,026			10,497,576
Payable for daily variation margin on financial futures contracts		0		0		592,275			0
Payable to investment adviser and affiliates		26,833		857,953		99,637			446,197
Payable to administrator		1,698		1,698		1,698			1,593
Accrued expenses and other liabilities		29,754		90,139		56,236			605,684
TOTAL LIABILITIES		9,227,355		183,650,578		164,658,145			11,551,050
TOTAL NET ASSETS	$	57,685,877	$	1,605,574,257	$	1,221,005,026		$	478,786,088
SECURITIES ON LOAN, AT MARKET VALUE	$	8,733,262	$	171,622,318	$	151,708,990		$	9,917,187

The accompanying notes are an integral part of these financial statements.

206

STATEMENTS OF ASSETS AND LIABILITIES — MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

Large Cap Appreciation		Large Company Growth			Small Cap Basic Value			Small Cap Index			Small Cap Value		Small Company Growth		Small Company Value
$	67,555,913	$	2,444,446,806		$	6,872,473		$	197,058,446		$	3,980,576	$	452,686,944	$	227,223,368
	3,667,215		37,741,471			0			14,652,150			161,413		19,123,847		7,570,042
	102,920		(208,551,577	)		(55,859	)		(29,703,282	)		964,167		27,553,794		(24,775,948	)
	71,326,048		2,273,636,700			6,816,614			182,007,314			5,106,156		499,364,585		210,017,462
	50,000		372,805			848,849			411,981			50,000		50,000		50,000
	13,553,438		336,502,825			0			28,563,718			0		84,823,878		33,783,917
	223,003		0			0			1,387,832			0		1,381,979		1,854,181
	24,259		3,146,591			10,272			128,455			1,038		67,001		284,674
	859		0			7			0			0		0		0
	85,177,607		2,613,658,921			7,675,742			212,499,300			5,157,194		585,687,443		245,990,234
	0		322,805			0			0			0		0		0
	214,868		0			0			756,031			0		7,199,507		1,044,137
	13,553,438		336,502,825			0			28,563,718			0		84,823,878		33,783,917
	0		0			0			175,250			0		0		0
	36,321		1,481,205			(602	)		41,015			3,003		378,767		130,175
	1,733		1,733			1,733			1,733			1,733		1,733		1,733
	49,111		113,408			17,350			19,472			2,377		47,430		40,126
	13,855,471		338,421,976			18,481			29,557,219			7,113		92,451,315		35,000,088
$	71,322,136	$	2,275,236,945		$	7,657,261		$	182,942,081		$	5,150,081	$	493,236,128	$	210,990,146
$	12,807,954	$	315,905,086		$	0		$	26,741,983		$	0	$	78,380,620	$	31,344,672

207

MASTER PORTFOLIOS STATEMENT OF OPERATIONS — FOR THE SIX MONTHS ENDED  MARCH 31, 2003 (UNAUDITED)

	Disciplined Growth			Equity Income			Index			International Equity(1)
INVESTMENT INCOME
Dividends	$	268,450		$	20,272,707		$	9,978,950		$	2,618,102
Interest		28,328			237,473			306,843			312,721
Securities lending		38,961			3,527,331			1,552,088			55,081
TOTAL INVESTMENT INCOME		335,739			24,037,511			11,837,881			2,985,904
EXPENSES
Advisory fees		222,537			6,516,499			943,653			2,526,063
Custody		5,934			173,773			125,820			252,606
Accounting		32,675			54,777			48,496			38,552
Legal and Audit fees		7,328			18,977			18,478			19,974
Directors’ fees		2,125			2,125			2,125			2,125
Other		0			14,837			6,748			1,973
TOTAL EXPENSES		270,599			6,780,988			1,145,320			2,841,293
LESS:
Waived fees and reimbursed expenses		(55,480	)		(890,112	)		(327,487	)		0
Net expenses		215,119			5,890,876			817,833			2,841,293
NET INVESTMENT INCOME (LOSS)		120,620			18,146,635			11,020,048			144,611
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
NET REALIZED GAIN (LOSS) FROM
Securities		(3,733,697	)		(3,607,229	)		1,045,988			(77,788,411	)
Foreign currency transactions		0			7,184			0			12,772
Financial futures transactions		0			0			1,134,720			0
NET REALIZED GAIN (LOSS) FROM INVESTMENTS		(3,733,697	)		(3,600,045	)		2,180,708			(77,775,639	)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
Securities		4,783,185			25,002,174			42,886,963			55,411,811
Foreign currency transactions		0			0			0			204,151
Financial futures transactions		0			0			1,118,450			0
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS		4,783,185			25,002,174			44,005,413			55,615,962
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS		1,049,488			21,402,129			46,186,121			(22,159,677	)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,170,108		$	39,548,764		$	57,206,169		$	(22,015,066	)

(1) Net of foreign withholding taxes of $210,362 for the International Equity Portfolio.

(2) This Portfolio commenced operations on August 30, 2002.

The accompanying notes are an integral part of these financial statements.

208

STATEMENT OF OPERATIONS — FOR THE SIX MONTHS ENDED MARCH 31, 2003 (UNAUDITED) MASTER PORTFOLIOS

Large Cap Appreciation			Large Company Growth			Small Cap Basic Value(2)			Small Cap Index			Small Cap Value			Small Company Growth			Small Company Value
$	332,014		$	7,409,215		$	56,485		$	651,941		$	275,297		$	781,686		$	1,609,451
	20,041			244,375			5,721			100,606			40,401			100,080			44,700
	21,136			1,268,483			0			95,384			219,391			96,231			135,157
	373,191			8,922,073			62,206			847,931			535,089			977,997			1,789,308
	246,142			8,479,015			35,620			202,762			352,391			2,160,192			836,006
	7,033			226,107			792			16,221			7,831			48,004			18,578
	28,055			61,804			27,229			34,048			32,875			38,242			34,364
	16,485			18,977			12,496			15,936			15,936			16,982			15,936
	2,125			2,125			2,125			2,125			2,125			2,125			2,125
	1,496			16,556			893			1,252			1,456			4,415			1,299
	301,336			8,804,584			79,155			272,344			412,614			2,269,960			908,308
	(49,314	)		(320	)		(41,755	)		(8,316	)		(42,603	)		(5,532	)		(175,410	)
	252,022			8,804,264			37,400			264,028			370,011			2,264,428			732,898
	121,169			117,809			24,806			583,903			165,078			(1,286,431	)		1,056,410
	(6,681,938	)		(14,962,793	)		(60,920	)		159,300			9,541,157			(34,259,218	)		(3,327,165	)
	0			0			0			0			0			0			0
	0			0			0			(1,008,866	)		0			0			0
	(6,681,938	)		(14,962,793	)		(60,920	)		(849,566	)		9,541,157			(34,259,218	)		(3,327,165	)
	7,229,079			124,907,145			94,987			(3,423,751	)		(13,450,968	)		49,767,803			2,032,238
	0			0			0			0			0			0			0
	0			0			0			498,550			0			0			0
	7,229,079			124,907,145			94,987			(2,925,201	)		(13,450,968	)		49,767,803			2,032,238
	547,141			109,944,352			34,067			(3,774,767	)		(3,909,811	)		15,508,585			(1,294,927	)
$	668,310		$	110,062,161		$	58,873		$	(3,190,864	)	$	(3,744,733	)	$	14,222,154		$	(238,517	)

209

MASTER PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

	DISCIPLINED GROWTH						EQUITY INCOME
	(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002
Beginning net assets	$	56,814,141		$	86,583,613		$	1,711,701,493		$	2,197,292,559
OPERATIONS:
Net investment income (loss)		120,620			201,044			18,146,635			35,823,612
Net realized gain (loss) from investments sold		(3,733,697	)		(7,501,610	)		(3,600,045	)		104,708,312
Net change in unrealized appreciation (depreciation) of investments		4,783,185			(184,344	)		25,002,174			(551,180,346	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		1,170,108			(7,484,910	)		39,548,764			(410,648,422	)
Transactions in Investors' Beneficial Interests
Contributions		9,350,928			14,641,961			79,245,368			195,638,575
Withdrawals		(9,649,300	)		(36,926,523	)		(224,921,368	)		(270,581,219	)
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS		(298,372	)		(22,284,562	)		(145,676,000	)		(74,942,644	)
NET INCREASE (DECREASE) IN NET ASSETS		871,736			(29,769,472	)		(106,127,236	)		(485,591,066	)
ENDING NET ASSETS	$	57,685,877		$	56,814,141		$	1,605,574,257		$	1,711,701,493

	SMALL CAP BASIC VALUE(2)						SMALL CAP INDEX
	(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002
Beginning net assets	$	8,184,616		$	0		$	141,023,226		$	146,650,353
OPERATIONS:
Net investment income (loss)		24,806			3,309			583,903			962,472
Net realized gain (loss) from investments sold		(60,920	)		0			(849,566	)		(496,180	)
Net change in unrealized appreciation (depreciation) of investments		94,987			(150,846	)		(2,925,201	)		(4,895,024	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		58,873			(147,537	)		(3,190,864	)		(4,428,732	)
Transactions in Investors' Beneficial Interests
Contributions		286,440			8,842,650			59,146,133			33,105,771
Withdrawals		(872,668	)		(510,497	)		(14,036,414	)		(34,304,166	)
NET INCREASE (DECREASE) FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS		(586,228	)		8,332,153			45,109,719			(1,198,395	)
NET INCREASE (DECREASE) IN NET ASSETS		(527,355	)		8,184,616			41,918,855			(5,627,127	)
ENDING NET ASSETS	$	7,657,261		$	8,184,616		$	182,942,081		$	141,023,226

(2) This Portfolio commenced operations on August 30, 2002.

The accompanying notes are an integral part of these financial statements.

210

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) MASTER PORTFOLIOS

INDEX						INTERNATIONAL EQUITY						LARGE CAP APPRECIATION						LARGE COMPANY GROWTH
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002
$	1,164,265,860		$	1,424,435,966		$	481,041,740		$	257,314,234		$	63,323,538		$	68,114,635		$	2,012,518,027		$	2,315,623,182
	11,020,048			20,302,603			144,611			1,865,054			121,169			273,678			117,809			(8,510,606	)
	2,180,708			(34,240,312	)		(77,775,639	)		(44,310,692	)		(6,681,938	)		(13,227,935	)		(14,962,793	)		(263,624,864	)
	44,005,413			(281,072,039	)		55,615,962			(54,501,131	)		7,229,079			(3,489,903	)		124,907,145			(314,984,633	)
	57,206,169			(295,009,748	)		(22,015,066	)		(96,946,769	)		668,310			(16,444,160	)		110,062,161			(587,120,103	)
	107,398,993			237,444,416			90,921,132			416,685,661			18,095,189			23,402,710			264,641,362			516,547,612
	(107,865,996	)		(202,604,774	)		(71,161,718	)		(96,011,386	)		(10,764,901	)		(11,749,647	)		(111,984,605	)		(232,532,664	)
	(467,003	)		34,839,642			19,759,414			320,674,275			7,330,288			11,653,063			152,656,757			284,014,948
	56,739,166			(260,170,106	)		(2,255,652	)		223,727,506			7,998,598			(4,791,097	)		262,718,918			(303,105,155	)
$	1,221,005,026		$	1,164,265,860		$	478,786,088		$	481,041,740		$	71,322,136		$	63,323,538		$	2,275,236,945		$	2,012,518,027

SMALL CAP VALUE						SMALL COMPANY GROWTH						SMALL COMPANY VALUE
(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002			(Unaudited) For the Six Months Ended March 31, 2003			For the Year Ended September 30 2002
$	133,055,181		$	168,627,677		$	470,274,154		$	575,999,538		$	154,974,427		$	147,838,358
	165,078			28,497			(1,286,431	)		(2,439,866	)		1,056,410			1,183,551
	9,541,157			8,667,897			(34,259,218	)		(112,512,630	)		(3,327,165	)		16,735,398
	(13,450,968	)		17,102,525			49,767,803			(2,881,758	)		2,032,238			(22,490,426	)
	(3,744,733	)		25,798,919			14,222,154			(117,834,254	)		(238,517	)		(4,571,477	)
	14,711,504			33,930,738			71,219,871			109,244,979			74,320,009			53,306,792
	(138,871,871	)		(95,302,153	)		(62,480,051	)		(97,136,109	)		(18,065,773	)		(41,599,246	)
	(124,160,367	)		(61,371,415	)		8,739,820			12,108,870			56,254,236			11,707,546
	(127,905,100	)		(35,572,496	)		22,961,974			(105,725,384	)		56,015,719			7,136,069
$	5,150,081		$	133,055,181		$	493,236,128		$	470,274,154		$	210,990,146		$	154,974,427

211

MASTER PORTFOLIOS FINANCIAL HIGHLIGHTS

	Ratio to Average Net Assets (Annualized)			Portfolio Turnover Rate
	Net Investment Income (Loss)	Net Expenses	Gross Expenses(1)
DISCIPLINED GROWTH
October 1, 2002 to March 31, 2003 (Unaudited)	0.41%	0.72%	0.91%	61%
October 1, 2001 to September 30, 2002	0.27%	0.73%	0.91%	156%
October 1, 2000 to September 30, 2001	0.15%	0.72%	0.82%	181%
October 1, 1999 to September 30, 2000	0.20%	0.75%	0.84%	106%
June 1, 1999 to September 30, 1999	(0.04)%	0.97%	1.02%	21%
June 1, 1998 to May 31, 1999	0.15%	0.97%	1.02%	90%
October 1, 1997(2) to May 31, 1998	0.55%	1.01%	1.06%	68%
EQUITY INCOME
October 1, 2002 to March 31, 2003 (Unaudited)	2.09%	0.68%	0.78%	8%
October 1, 2001 to September 30, 2002	1.61%	0.68%	0.78%	12%
October 1, 2000 to September 30, 2001	1.29%	0.68%	0.78%	3%
October 1, 1999 to September 30, 2000	1.42%	0.67%	0.76%	9%
June 1, 1999 to September 30, 1999	1.43%	0.54%	0.57%	5%
June 1, 1998 to May 31, 1999	1.53%	0.55%	0.57%	3%
June 1, 1997(2) to May 31, 1998	1.76%	0.52%	0.57%	3%
INDEX
October 1, 2002 to March 31, 2003 (Unaudited)	1.75%	0.13%	0.18%	3%
October 1, 2001 to September 30, 2002	1.40%	0.13%	0.18%	4%
October 1, 2000 to September 30, 2001	1.23%	0.13%	0.18%	2%
October 1, 1999 to September 30, 2000	1.13%	0.13%	0.18%	8%
June 1, 1999 to September 30, 1999	1.25%	0.18%	0.23%	11%
June 1, 1998 to May 31, 1999	1.35%	0.18%	0.23%	4%
June 1, 1997 to May 31, 1998	1.60%	0.19%	0.24%	7%
INTERNATIONAL EQUITY
October 1, 2002 to March 31, 2003 (Unaudited)	0.06%	1.12%	1.12%	28%
October 1, 2001 to September 30, 2002	0.54%	1.24%	1.26%	38%
October 1, 2000 to September 30, 2001	0.57%	1.27%	1.31%	33%
October 1, 1999 to September 30, 2000	0.06%	1.30%	1.39%	64%
June 1, 1999 to September 30, 1999	0.21%	1.40%	1.40%	11%
February 12, 1999(2) to May 31, 1999	1.92%	1.40%	1.45%	12%
LARGE CAP APPRECIATION
October 1, 2002 to March 31, 2003 (Unaudited)	0.34%	0.72%	0.86%	82%
October 1, 2001 to September 30, 2002	0.37%	0.72%	0.88%	123%
August 31, 2001(2) to September 30, 2001	1.51%	0.72%	0.79%	10%
LARGE COMPANY GROWTH
October 1, 2002 to March 31, 2003 (Unaudited)	0.01%	0.78%	0.78%	4%
October 1, 2001 to September 30, 2002	(0.34)%	0.78%	0.78%	18%
October 1, 2000 to September 30, 2001	(0.29)%	0.78%	0.78%	13%
October 1, 1999 to September 30, 2000	(0.30)%	0.77%	0.77%	9%
June 1, 1999 to September 30, 1999	(0.07)%	0.69%	0.72%	5%
June 1, 1998 to May 31, 1999	(0.19)%	0.71%	0.72%	28%
June 1, 1997(2) to May 31, 1998	(0.03)%	0.67%	0.73%	13%
SMALL CAP BASIC VALUE
October 1, 2002 to March 31, 2003 (Unaudited)	0.63%	0.94%	2.00%	71%
August 30, 2002(2) to September 30, 2002	0.45%	0.98%	2.16%	0%
SMALL CAP INDEX
October 1, 2002 to March 31, 2003 (Unaudited)	0.72%	0.33%	0.34%	9%
October 1, 2001 to September 30, 2002	0.57%	0.32%	0.33%	17%
October 1, 2000 to September 30, 2001	0.90%	0.32%	0.33%	25%
October 1, 1999 to September 30, 2000	1.03%	0.33%	0.34%	42%
June 1, 1999 to September 30, 1999	0.53%	0.44%	0.50%	23%
June 1, 1998 to May 31, 1999	0.76%	0.44%	0.48%	26%
April 9, 1998(2) to May 31, 1998	1.04%	0.52%	0.54%	2%
SMALL CAP VALUE
October 1, 2002 to March 31, 2003 (Unaudited)	0.42%	0.95%	1.05%	0%
October 1, 2001 to September 30, 2002	0.02%	0.94%	0.97%	90%
October 1, 2000 to September 30, 2001	0.36%	0.83%	0.96%	131%
October 1, 1999 to September 30, 2000	0.08%	0.68%	1.00%	124%
June 1, 1999 to September 30, 1999	(0.32)%	1.06%	1.10%	49%
June 1, 1998 to May 31, 1999	(0.20)%	1.05%	1.10%	108%
October 1, 1997(2) to May 31, 1998	(0.17)%	1.08%	1.13%	79%

212

FINANCIAL HIGHLIGHTS MASTER PORTFOLIOS

	Ratio to Average Net Assets (Annualized)			Portfolio Turnover Rate
	Net Investment Income (Loss)	Net Expenses	Gross Expenses(1)
SMALL COMPANY GROWTH
October 1, 2002 to March 31, 2003 (Unaudited)	(0.54)%	0.94%	0.95%	79%
October 1, 2001 to September 30, 2002	(0.40)%	0.94%	0.94%	169%
October 1, 2000 to September 30, 2001	(0.17)%	0.94%	0.94%	206%
October 1, 1999 to September 30, 2000	(0.28)%	0.94%	0.94%	203%
June 1, 1999 to September 30, 1999	(0.22)%	0.94%	0.98%	55%
June 1, 1998 to May 31, 1999	(0.25)%	0.98%	0.98%	154%
June 1, 1997(2) to May 31, 1998	(0.41)%	0.93%	0.98%	123%
SMALL COMPANY VALUE
October 1, 2002 to March 31, 2003 (Unaudited)	1.14%	0.79%	0.98%	37%
October 1, 2001 to September 30, 2002	0.68%	0.79%	0.98%	98%
October 1, 2000 to September 30, 2001	1.32%	0.79%	0.97%	90%
October 1, 1999 to September 30, 2000	1.37%	0.81%	1.00%	114%
June 1, 1999 to September 30, 1999	0.83%	1.00%	1.04%	28%
June 1, 1998 to May 31, 1999	0.76%	0.99%	1.04%	97%
June 1, 1997(2) to May 31, 1998	0.69%	0.99%	1.04%	99%

213

MASTER PORTFOLIOS NOTES TO FINANCIAL HIGHLIGHTS

NOTES TO FINANCIAL HIGHLIGHTS

(1)	During each period, various fees and expenses were waived and reimbursed. The ratio of Gross Expenses to Average Net Assets reflects the expense ratio in the absence of any waivers and reimbursements (Note 5).
(2)	Commencement of operations.

The accompanying notes are an integral part of these financial statements.

214

NOTES TO FINANCIAL STATEMENTS MASTER PORTFOLIOS

1. ORGANIZATION

Wells Fargo Master Trust (“Master Trust”) is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). Master Trust currently has 15 separate investment portfolios. These financial statements present the Disciplined Growth, Equity Income, Index, International Equity, Large Cap Appreciation, Large Company Growth, Small Cap Basic Value, Small Cap Index, Small Cap Value, Small Company Growth, and Small Company Value diversified portfolios (each, a “Portfolio” and collectively, the “Portfolios”).

Interests in the Portfolios 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 by Master Trust in the preparation of its financial statements, are in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for investment companies.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

SECURITY VALUATION

Investments in securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price. Securities listed on The Nasdaq Stock Market, Inc. are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. In the absence of any sale of such securities, and in the case of other securities, including U.S. Government obligations, but excluding debt securities maturing in 60 days or less, the valuations are based on the latest quoted bid prices. Securities denominated in foreign currencies are translated into U.S. dollars using the closing rates of exchange in effect on the day of valuation. Securities for which quotations are not readily available are valued at fair value as determined by policies set by the Board of Trustees.

Debt securities maturing in 60 days or less are valued at amortized cost. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity, which approximates market value.

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 Portfolio 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 amounts are translated into U.S. dollars using the closing rates of exchange as follows: (i) assets and liabilities at the rate of exchange at the end of the respective period; and (ii) purchases and sales of securities and income and expenses at the rate of exchange prevailing on the dates of such transactions. The portion of the results of operations arising from changes in the exchange rates and the portion due to fluctuations arising from changes in the market prices of securities are not isolated. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

FUTURES CONTRACTS

Each Portfolio 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 Portfolio 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 Portfolio 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 Portfolio as unrealized gains or losses. When the contract is closed, the Portfolio 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/

215

MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS

or published positions of the Securities and Exchange Commission (the “SEC”) for long futures positions, the Portfolio is required to segregate highly liquid securities as permitted by the SEC in connection with futures transactions in an amount generally equal to the entire value of the underlying contracts. Risks of entering into futures contracts include the possibility that there may be an illiquid market and that a change in the value of the contract may not correlate with changes in the value of the underlying securities. On March 31, 2003, the Index and Small Cap Index Portfolios held the following long futures contracts:

Contracts	Portfolio	Type	Expiration Date	Notional Contract Value	Net Unrealized Appreciation (Depreciation)
149 Long	Index Portfolio	S&P 500 Index	June 2003	$32,153,975	$(603,225)
95 Long	Small Cap Index Portfolio	Russell 2000	June 2003	16,993,775	317,600

The Index Portfolio has pledged U.S. Treasury Bills with a par value of $3,946,846. The Small Cap Index Portfolio has pledged U.S. Treasury Bills with a par value of $1,830,509.

REPURCHASE AGREEMENTS

Each Portfolio 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 Portfolios’ custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price. The repurchase agreements held by the Portfolios are collateralized by instruments such as U.S. Treasury, federal agency, or high-grade corporate obligations.

SECURITY LOANS

The Portfolios may loan securities in return for securities and cash collateral which is invested in various short-term fixed income securities. The Portfolios 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 Portfolio 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. 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 Portfolio. Wells Fargo Funds Management, LLC receives 40% of income on security lending activities and covers the expenses associated with securities lending activities. As of March 31, 2003, the value of securities on loan and the value of the related collateral are shown in the Statement of Assets and Liabilities.

FEDERAL INCOME TAXES

Each Portfolio is treated as a separate entity for federal income tax purposes. The Portfolios 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 the Portfolios are deemed to have been “passed through” to the interestholders in proportion to their holdings of the Portfolios regardless of whether such interest, dividends, or gains have been distributed by the Portfolios.

3. ADVISORY FEES

The investment adviser of each Portfolio is Wells Fargo Funds Management, LLC (“Funds Management”). Funds Management assumed investment advisory responsibilities for each Portfolio on March 1, 2001. Funds Management, an indirect wholly-owned subsidiary of Wells Fargo & Company and an affiliate of Wells Fargo Bank, N.A. (“Wells Fargo Bank”), was created to succeed to the mutual fund advisory responsibilities of Wells Fargo Bank in early 2001. The Portfolios’ adviser is responsible for implementing the investment policies and guidelines for the Portfolios, and for supervising the sub-advisers who are responsible for the day-to-day portfolio management of the Funds.

Funds Management has retained the services of certain investment sub-advisers (Cadence Capital Management, Peregrine Capital Management, Inc., Smith Asset Management Group, L.P., and Wells Capital Management Incorporated) on selected Portfolios. The fees related to sub-advisory services are borne directly by the adviser and do not increase the overall fees paid by the Portfolios to the adviser.

216

NOTES TO FINANCIAL STATEMENTS MASTER PORTFOLIOS

Portfolio	Advisory Fee	Sub-adviser	Sub-Advisory Fee
Disciplined Growth Portfolio	0.75%	Smith Asset Management	$0-175 million, 0.35%
			175-225 million, 0.00%
			225-500 million, 0.25%
			Greater than 500 million, 0.20%
Equity Income Portfolio	0.75%	Wells Capital Management	0-200 million, 0.25%
			200-400 million, 0.20%
			Greater than 400 million, 0.15%
Index Portfolio	0.15%	Wells Capital Management	0-200 million, 0.02%
			Greater than 200 million, 0.01%
International Equity Portfolio	1.00%	Wells Capital Management	0-200 million, 0.35%
			Greater than 200 million, 0.25%
Large Cap Appreciation Portfolio	0.70%	Cadence Capital Management	0-250 million, 0.30%
			250-500 million, 0.20%
			500 million-1 billion, 0.15%
			Greater than 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%
			Greater than 275 million, 0.30%
Small Cap Basic Value Portfolio	0.90%	Wells Capital Management	0-200 million, 0.25%
			Greater than 200 million, 0.20%
Small Cap Index Portfolio	0.25%	Wells Capital Management	0-200 million, 0.02%
			Greater than 200 million, 0.01%
Small Cap Value Portfolio	0.90%	Smith Asset Management	0-110 million, 0.45%
			110-150 million, 0.00%
			150-300 million, 0.30%
			Greater than 300 million, 0.25%
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%
			Greater than 735 million 0.55%
Small Company Value Portfolio	0.90%	Peregrine Capital Management	0-175 million, 0.50%
			Greater than 175 million, 0.75%

217

MASTER PORTFOLIOS NOTES TO FINANCIAL STATEMENTS

4. OTHER FEES AND TRANSACTIONS WITH AFFILIATES

Currently, there are no administration fees charged to the Portfolios at the master level. Wells Fargo Bank Minnesota, N.A. (“Wells Fargo Bank, MN”), serves as the custodian for each Portfolio and may appoint certain sub-custodians to custody those Portfolios’ foreign securities and assets held in foreign countries. Wells Fargo Bank, MN receives a fee with respect to each Portfolio at an annual rate of 0.02% of each Portfolio’s average daily net assets, with the exception of the International Equity Portfolio.

Effective September 1, 2002, Wells Fargo Bank, MN receives a fee with respect to the International Equity Portfolio at an annual rate of 0.10% of the Portfolio’s average daily net assets. Prior to this date, Wells Fargo Bank, MN received a fee at an annual rate of 0.25% of the average daily assets for these services.

Effective the first quarter of 2003, PFPC, Inc. (“PFPC”) serves as fund accountant for the Portfolios. PFPC currently does not receive an annual asset based fund complex fee or an annual fee for its services as fund accountant to the Portfolios, but is entitled to be reimbursed for all out-of-pocket expenses reasonably incurred in providing these services. Prior to PFPC, Forum Accounting Services, LLC served as fund accountant and was entitled to receive a fixed monthly fee, a basis point fee of 0.0025% of the average daily net assets of each portfolio, plus out-of-pocket expenses.

5. WAIVED FEES AND REIMBURSED EXPENSES

For the period ended March 31, 2003, fees waived by Funds Management were as follows:

Portfolio	Fees Waived by Funds Management
Disciplined Growth Portfolio	$	55,480
Equity Income Portfolio		890,112
Index Portfolio		327,487
International Equity Portfolio		0
Large Cap Appreciation Portfolio		49,314
Large Company Growth Portfolio		320
Small Cap Basic Value Portfolio		41,755
Small Cap Index Portfolio		8,316
Small Cap Value Portfolio		42,603
Small Company Growth Portfolio		5,532
Small Company Value Portfolio		175,410

6. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date), for each Portfolio for the period ended March 31, 2003 were as follows:

AGGREGATE PURCHASES AND SALES
Portfolio	Purchases at Cost		Sales Proceeds
Disciplined Growth Portfolio	$	33,920,292	$	33,872,003
Equity Income Portfolio		132,510,593		216,860,675
Index Portfolio		39,583,308		380,628,499
International Equity Portfolio		132,097,267		145,593,934
Large Cap Appreciation Portfolio		61,505,716		55,379,369
Large Company Growth Portfolio		214,231,509		76,978,648
Small Cap Basic Value Portfolio		6,724,019		4,844,675
Small Cap Index Portfolio		52,588,375		13,451,685
Small Cap Value Portfolio		0		120,261,074
Small Company Growth Portfolio		528,673,984		372,925,591
Small Company Value Portfolio		118,938,790		67,232,673

218

BOARD OF TRUSTEES MASTER PORTFOLIOS

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (“Trustees”) of Wells Fargo Funds Trust (the “Trust”) and supplements, and should be read in conjunction with, the Prospectus and the Statement of Additional Information* of each Fund. Each of the Trustees listed below acts in identical capacities for each of the 91 funds comprising the Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively the “Fund Complex”). All of the non-interested Trustees are also members of the Audit and Nominating Committees of each Trust in the Fund Complex. The address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

INTERESTED TRUSTEES**

Name and Age	Position held and length of service***	Principal occupations during past five years	Other Directorships
Robert C. Brown 71	Trustee since 1992	Retired. Director, Federal Farm Credit Banks Funding Corporation and Farm Credit System Financial Assistance Corporation until February 1999.	None
J. Tucker Morse 58	Trustee since 1987	Private Investor/Real Estate Developer; Chairman of White Point Capital, LLC.	None
NON-INTERESTED TRUSTEES
Name and Age	Position held and length of service***	Principal occupations during past five years	Other Directorships
Thomas S. Goho 60	Trustee since 1987	Wake Forest University, Calloway School of Business and Accountancy, Benson-Pruitt Professorship since 1999, Associate Professor of Finance 1994 - 1999.	None
Peter G. Gordon 60	Trustee since 1998 (Lead Trustee since 2001)	Chairman, CEO, and Co-Founder of Crystal Geyser Water Company and President of Crystal Geyser Roxane Water Company.	None
Richard M. Leach 69	Trustee since 1987	President of Richard M. Leach Associates (a financial consulting firm).	None
Timothy J. Penny 51	Trustee since 1996	Senior Counselor to the public relations firm of Himle-Horner and Senior Fellow at the Humphrey Institute, Minneapolis, Minnesota (a public policy organization).	None
Donald C. Willeke 62	Trustee since 1996	Principal in the law firm of Willeke & Daniels.	None

219

MASTER PORTFOLIOS BOARD OF TRUSTEES

OFFICERS

Name and Age	Position held and length of service	Principal occupations during past five years	Other Directorships
Karla M. Rabusch 43	President, since 2003	Senior Vice President of 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 March 2001 to March 2003. Vice President of Wells Fargo Bank, N.A. from December 1997 to May 2000.	None
Denise R. Lewis 39	Treasurer, since 2003	Vice President of Wells Fargo Bank, N.A. Vice President of Financial Reporting and Accounting of Wells Fargo Funds Management, LLC. Prior thereto, Senior Vice President of The Wadsworth Group until December 2000.	None
C. David Messman 42	Secretary, since 2000	Vice President and Managing Counsel of Wells Fargo Bank, N.A. Vice President and Secretary of Wells Fargo Funds Management, LLC since March 2001.	None

* 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.

220

LIST OF ABBREVIATIONS 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
TBA	— To Be Announced
TRAN	— Tax Revenue Anticipation Notes
USD	— Unified School District
V/R	— Variable Rate
WEBS	— World Equity Benchmark Shares

221

ITEM 2. CODE OF ETHICS

Not applicable pursuant to SEC Release No. 34-47262 (January 27, 2003).

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable pursuant to SEC Release No. 34-47262 (January 27, 2003).

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable pursuant to SEC Release No. 34-47265 (January 28, 2003).

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) Not applicable pursuant to SEC Release No. 34-47262 (January 27, 2003).

(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

ITEM 10. EXHIBITS

(a) Not applicable pursuant to SEC Release No. 34-47262 (January 27, 2003).

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached as Exhibit 99.CERT.

(c) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) is attached as Exhibit 99.906CERT. The certifications furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:	/s/    KARLA M. RABUSCH
	Karla M. Rabusch President

Date: June 9, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:	/s/    DENISE R. LEWIS
	Denise R. Lewis Treasurer

Date: June 9, 2003