NATIONS LIFEGOAL FUNDS, INC.
LIFEGOAL GROWTH PORTFOLIO
LIFEGOAL BALANCED GROWTH PORTFOLIO
LIFEGOAL INCOME AND GROWTH PORTFOLIO
Supplement dated December 15, 2000
to Prospectuses dated August 1, 2000
The combined prospectuses for the Primary A, Primary B, Investor A, Investor B
and Investor C Shares of LifeGoal Growth Portfolio, LifeGoal Balanced Growth
Portfolio and LifeGoal Income and Growth Portfolio (each a "Portfolio") are
hereby supplemented to reflect the addition of new underlying Fund categories
and changes to the target allocations for those categories for each Portfolio.
Specifically, the prospectuses are supplemented as follows:
1. LifeGoal Growth Portfolio: Replacing the underlying Fund category and target
allocation chart that follows the third paragraph under the heading "Investment
strategies" with the following:
<TABLE>
<CAPTION>
LifeGoal Growth Portfolio Target allocation for each
can invest in: Fund category:
<S> <C>
Large-capitalization domestic stock funds 30-70%
Nations Value Fund
Nations Blue Chip Fund
Nations Strategic Growth Fund
Nations Marsico Focused Equities Fund
Mid-capitalization domestic stock fund 10-30%
Nations MidCap Growth Fund
Small-capitalization domestic stock fund 10-30%
Nations Small Company Fund
International stock funds 10-30%
Nations International Value Fund
Nations International Equity Fund
Emerging markets stock fund 0-5%
Nations Emerging Markets Fund
</TABLE>
<PAGE>
2. LifeGoal Balanced Growth Portfolio: Replacing the underlying Fund category
and target allocation chart that follows the third paragraph under the heading
"Investment strategies" with the following:
<TABLE>
<CAPTION>
LifeGoal Balanced Growth Target allocation for each
Portfolio can invest in: Fund category:
<S> <C>
Large-capitalization domestic stock funds 15-40%
Nations Value Fund
Nations Blue Chip Fund
Nations Strategic Growth Fund
Nations Marsico Focused Equities Fund
Mid-capitalization domestic stock fund 5-15%
Nations MidCap Growth Fund
Small-capitalization domestic stock fund 5-15%
Nations Small Company Fund
International stock funds 5-15%
Nations International Value Fund
Nations International Equity Fund
Government & corporate bond funds 35-60%
Nations Bond Fund
Nations Strategic Income Fund
High yield bond fund 0-10%
Nations High Yield Bond Fund
</TABLE>
3. LifeGoal Income and Growth Portfolio: Replacing the underlying Fund category
and target allocation chart that follows the third paragraph under the heading
"Investment strategies" with the following:
<TABLE>
<CAPTION>
LifeGoal Income and Growth Portfolio Target allocation for each
can invest in: Fund category:
<S> <C>
Large-capitalization domestic stock funds 10-30%
Nations Value Fund
Nations Blue Chip Fund
Nations Strategic Growth Fund
Nations Marsico Focused Equities Fund
Small-capitalization domestic stock fund 0-10%
Nations Small Company Fund
International stock funds 0-10%
Nations International Value Fund
Nations International Equity Fund
Government & corporate bond funds 50-90%
Nations Short-Term Income Fund
Nations Bond Fund
Nations Strategic Income Fund
High yield bond fund 0-10%
Nations High Yield Bond Fund
Money market fund 0-20%
Nations Prime Fund
</TABLE>
2
<PAGE>
4. Risks and other things to consider:
a) Inserting the following risks under the heading "Risks and other things to
consider" for each Portfolio specified:
LifeGoal Growth Portfolio and LifeGoal Balanced Growth Portfolio:
o Technology and technology-related risk - The Portfolio allocates assets to
Funds that may invest in technology and technology-related companies, which
can be significantly affected by obsolescence of existing technology, short
product cycles, falling prices and profits, and competition from new market
entrants.
LifeGoal Growth Portfolio:
o Emerging markets risk - The Portfolio allocates assets to Funds that may
invest in securities issued by companies in developing or emerging market
countries, like those in Eastern Europe, the Middle East, Asia or Africa.
Such securities may be more sensitive to the risks of foreign investing. In
particular, these countries may experience instability resulting from rapid
social, political and economic development. Many of these countries are
dependent on international trade, which makes them sensitive to world
commodity prices and economic downturns in other countries. Some emerging
countries have a higher risk of currency devaluation, and some countries may
experience long periods of high inflation or rapid changes in inflation
rates.
b) Replacing the "Credit risk" disclosure under the heading "Risks and other
things to consider" for LifeGoal Income and Growth Portfolio with the following:
o Credit risk - A Fund that invests in fixed income securities could lose money
if the issuer of a fixed income security is unable to pay interest or repay
principal when it's due. Credit risk usually applies to most fixed income
securities, but generally is not a factor for U.S. government obligations.
Fixed income securities with the lowest investment grade rating or that
aren't investment grade are more speculative in nature than securities with
higher ratings, and they tend to be more sensitive to credit risk,
particularly during a downturn in the economy.
5. General:
a) Adding the following overview of the objectives and principal investments of
the following Nations Funds in which the Portfolios may now invest under the
heading "About the Nations Funds."
<TABLE>
<CAPTION>
<S> <C> <C>
The Fund's investment objective What the Fund invests in
--------------------------------------- -----------------------------------------------
Domestic Stock Fund
Nations MidCap Growth Fund Capital appreciation by investing in o at least 65% of its assets in companies
emerging growth companies that are chosen from a universe of emerging growth
believed to have superior long-term companies. The Fund generally holds
earnings growth prospects. securities of between 75 and 130 issuers,
which include common stocks, preferred
stocks and convertible securities like
warrants, rights and convertible debt
-------------------------------- --------------------------------------- -----------------------------------------------
International Stock Fund
Nations Emerging Markets Fund Long-term capital growth by investing o at least 65% of its assets in companies in
primarily in equity securities of emerging markets or developing countries.
companies in emerging market The Fund typically invests in securities of
countries, such as those in Latin companies in at least three emerging
America, Eastern Europe, the Pacific markets countries at any one time
Basin, the Far East and India. o may invest in foreign currency exchange
contracts to convert foreign currencies to
and from the U.S. dollar, and to hedge
against changes in foreign currency
exchange rates
-------------------------------- --------------------------------------- -----------------------------------------------
</TABLE>
3
<PAGE>
5. a) continued
<TABLE>
<CAPTION>
<S> <C> <C>
The Fund's investment objective What the Fund invests in
----------------------------------------- -----------------------------------------------
Government & Corporate Bond
Fund
Nations High Yield Bond Fund Maximum income by investing in a Nations High Yield Bond Master Portfolio. The
diversified portfolio of high yield debt Master Portfolio invests:
securities. o at least 65% of its assets in domestic and
foreign corporate high yield debt securities
which are not rated investment grade but
generally will be rated "B"or better by
Moody's Investor Services, Inc. or Standard
& Poor's Corporation
o primarily in U.S. government obligations,
zero-coupon bonds, as well as domestic
corporate high yield debt securities and
U.S. dollar-denominated foreign corporate
high yield debt securities, both of which
include private placements
o up to 25% of its assets in equity
securities which may include convertible
securities
</TABLE>
b) Adding the following information in the chart outlining the BACAP asset
management teams responsible for making the day-to-day investment decisions for
certain Funds under the heading "How the Portfolios are managed -- Investment
sub-advisers -- Banc of America Capital Management, Inc.:"
Nations MidCap Growth Fund Growth Strategies Team
c) Adding the following information under the heading "How the Portfolios are
managed -- Investment sub-advisers -- Gartmore Global Partners:"
Gartmore is the investment sub-adviser to Nations Emerging Markets Fund.
Nations Emerging Markets Fund is managed by Christopher Palmer, a senior
investment manager in the Gartmore Emerging Markets Team. He has managed the
Fund since August 1999 and he also co-manages Nations International Equity
Master Portfolio.
d) Adding the following information under the heading "How the Portfolios are
managed -- Investment sub-advisers" after the disclosure relating to Putnam
Investment Management, Inc.:
[GRAPHIC]
MacKay Shields LLC
9 West 57th Street
New York, New York 10019
MacKay Shields LLC
Founded in 1938, MacKay Shields is an independently-managed, wholly-owned
subsidiary of New York Life Insurance Company. The firm's 63 investment
professionals manage more than $30 billion in assets, including over $6 billion
in high yield assets.
MacKay Shields' High Yield Portfolio Management Team is responsible for making
the day-to-day decisions for Nations High Yield Bond Master Portfolio.
4
