<PAGE> 1
NATIONS
FUND
MONEY
MARKET
FUNDS
SEMI ANNUAL REPORT FOR THE PERIOD ENDED SEPTEMBER 30, 1996
[NATIONS FUND LOGO]
<PAGE> 2
<TABLE>
<S> <C>
NOT MAY LOSE VALUE
FDIC-
INSURED NO BANK GUARANTEE
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, N.A., IS NOT A BANK AND SECURITIES OFFERED BY IT ARE NOT
GUARANTEED BY ANY BANK OR INSURED BY THE FDIC. STEPHENS INC., MEMBER NYSE-SIPC.
NATIONS FUND INVESTMENT ADVISER: NATIONSBANC ADVISORS, INC.
NATIONS FUND INVESTMENT SUB-ADVISERS: TRADESTREET INVESTMENT ASSOCIATES, INC.
AND GARTMORE GLOBAL PARTNERS.
<PAGE> 3
NATIONS FUND
DEAR SHAREHOLDER:
Financial assets, particularly U.S. equity securities, have continued to produce
solid returns through the first nine months of 1996. As we anticipated six
months ago, the returns have been less spectacular than in 1995 and have been
accompanied by greater volatility. After selling off sharply in the first part
of the year, taxable bonds have traded in a broad range for the past six months.
Meanwhile, municipal securities have enjoyed better total returns than their
taxable counterparts. International equity securities have produced positive
returns, although these equities have generally lagged their domestic
counterparts.
Throughout the current year, investors have had no lack of issues to worry about
- -- the level of economic activity, Federal Reserve Board (the "Fed") policies,
corporate profits, inflation and domestic politics. Despite the periodic
worries, none of these issues have manifested themselves into overwhelming
problems. The economy has neither accelerated at an unacceptable pace, nor
fallen into recession. The Fed's policies have been steady. Corporate profits
have not achieved 1995's strong gains, but have increased at a reasonable pace.
Inflation remains tame, despite strong job growth and low unemployment.
Moreover, the political season has done little to unsettle the markets. Despite
the election year, Congress produced a timely and sensible budget for fiscal
year 1997.
Outside the U.S. there is much less concern about economies overheating. In both
Europe and Japan, the focus has been on stimulating economic growth and, to this
end, governments have been following loose monetary policies. Provided earnings
continue their strong recovery in these regions, the environment for foreign
equity securities looks very encouraging. Pacific Rim economies have slowed this
year from the exceptionally strong growth over the past few years. Although the
region's slower growth in exports along with tighter monetary policies have had
a negative impact on certain markets, they also have reduced the overheating
inflationary problems which occurred across the region as a result of the
exceptional growth.
Looking ahead, there are strong prospects for a return to higher growth in Asia
next year as central banks begin to ease monetary policies and economic activity
picks up outside Asia, particularly in Europe and Japan. Unlike in the U.S.,
bond yields have actually fallen in many overseas markets and equity valuations
remain generally low in relation to bonds.
The final months of 1996 and the early part of 1997 are unlikely to bring
closure to any of the issues described above. Investors will continue to be edgy
about the prospects for the U.S. economy, inflation and profits. Moreover, we
will continue to hear strong opinions expressed on the future course of the Fed,
and the political landscape after the election. Despite all the worries and
rhetoric, we think the pattern of the last several years will continue to hold
true. Investor apprehension will, from time to time, lead to market volatility.
However, moderate economic growth, stable inflation and modest profits should,
in our view, produce a reasonable investment environment as we move into the new
year.
Sincerely,
/S/ A. MAX WALKER
- -------------------------------
A. Max Walker
President and Chairman
of the Board
September 30, 1996
1
<PAGE> 4
THE NATIONS FUND ADVANTAGE
A family of mutual funds provides investors with a number of advantages,
including the ability to shift investment assets among funds as their financial
objectives change. The Nations Fund family of mutual funds includes a broad
array of professionally managed domestic and international stock, bond and money
market funds advised by NationsBanc Advisors, Inc. The family is designed to
accommodate a wide variety of investment objectives across the risk/reward
spectrum.
[GRAPH]
For specific information on developing an investment portfolio that will more
closely target your investment objectives, contact your investment
representative or Nations Fund for fund brochures and prospectuses at (800)
982-2271.
- ---------------
* The Nations Fund family includes Nations Equity Index Fund, which seeks
investment results that correspond, before fees and expenses, to the total
return of the S&P 500 Index, and Nations Managed Index Fund, which seeks, over
the long-term to provide a total return which (gross of fees and expenses)
exceeds the total return of the S&P 500.
2
<PAGE> 5
NATIONS FUND
NATIONS PRIME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
BANK OBLIGATIONS -- 12.8%
BANKERS ACCEPTANCE -- 0.7%
$ 30,000,000 Sanwa Bank Ltd.,
Discount note....... 10/25/96 $ 29,892,600
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 1.2%
50,000,000 Bank of New York,
(Delaware),
5.775%+............. 10/25/96 50,000,000
CERTIFICATES OF DEPOSIT -- EURO -- 0.7%
27,000,000 Morgan Guaranty Trust
Company,
4.920%.............. 02/12/97 26,982,109
CERTIFICATES OF DEPOSIT -- YANKEE -- 10.2%
Bank of Tokyo Mitsubishi,
(New York):
25,000,000 5.660%................ 02/12/97 25,000,000
30,000,000 5.860%................ 03/10/97 30,000,000
30,000,000 5.730%................ 03/27/97 30,000,000
100,000,000 Bayerische Landesbank,
(New York),
5.7875%(+).......... 08/01/97 100,000,000
Bayerische Vereinsbank
AG, (New York):
50,000,000 5.320%................ 02/24/97 50,000,000
30,000,000 5.300%................ 03/04/97 30,000,000
60,000,000 Deutsche Bank, (New
York),
5.700%.............. 09/17/97 60,000,000
Sanwa Bank Ltd. of New
York:
20,000,000 5.590%................ 10/16/96 19,999,548
30,000,000 5.700%................ 10/16/96 30,000,123
50,000,000 5.650%................ 01/15/97 50,000,000
424,999,671
TOTAL BANK OBLIGATIONS
(Cost $531,874,380).......... 531,874,380
------------
CORPORATE OBLIGATIONS -- 57.2%
COMMERCIAL PAPER -- 37.2%
Aetna Services, Inc.:
20,000,000 Discount note......... 04/10/97 19,384,555
20,000,000 Discount note......... 04/11/97 19,379,200
81,000,000 American Home Food
Products Inc.,
Discount note(a).... 10/03/96 80,975,700
20,000,000 Ameritech Corporation,
Discount note(a).... 12/30/96 19,724,000
Asset Securitization
Cooperative
Corporation:
25,000,000 Discount note(a)...... 10/01/96 24,977,208
30,000,000 Discount note......... 10/15/96 29,936,767
7,500,000 Associates Corporation
of N.A.,
Discount note....... 10/01/96 7,500,000
Bankers Trust Company:
60,000,000 Discount note......... 02/18/97 58,733,000
25,000,000 Discount note......... 03/05/97 24,388,611
20,000,000 BTM Capital
Corporation,
Discount note(a).... 10/28/96 19,916,300
$ 10,300,000 Caterpillar Financial
Services
Corporation,
Discount note....... 10/01/96 $ 10,300,000
Countrywide Home
Loans, Inc.:
20,300,000 Discount note......... 10/02/96 20,297,000
12,200,000 Discount note......... 10/30/96 12,146,930
Finova Capital
Corporation:
15,000,000 Discount note......... 10/18/96 14,961,042
45,500,000 Discount note......... 10/21/96 45,361,092
50,000,000 Discount note......... 10/28/96 49,798,625
30,000,000 Discount note......... 11/13/96 29,806,500
25,000,000 Discount note......... 11/27/96 24,778,333
24,000,000 First Data
Corporation,
Discount note....... 11/19/96 23,822,620
General Motors
Acceptance
Corporation:
25,000,000 Discount note......... 11/26/96 24,805,556
12,000,000 Discount note......... 12/04/96 11,882,240
30,000,000 Discount note......... 12/13/96 29,671,500
25,000,000 Discount note......... 12/17/96 24,701,090
30,000,000 Discount note......... 02/19/97 29,353,750
24,300,000 Discount note......... 03/12/97 23,687,640
International
Securitization
Corporation:
30,000,000 Discount note(a)...... 10/22/96 29,903,750
13,000,000 Discount note(a)...... 12/24/96 12,836,200
Lehman Brothers
Holdings Inc.:
50,000,000 Discount note......... 11/05/96 49,763,264
26,000,000 Discount note......... 01/07/97 25,595,152
Mitsubishi
International
Corporation:
20,000,000 Discount note......... 10/09/96 19,975,511
30,000,000 Discount note......... 10/10/96 29,958,750
National Bank of
Canada:
25,000,000 Discount note......... 11/21/96 24,825,042
25,000,000 Discount note......... 11/22/96 24,824,139
25,000,000 Discount note......... 11/29/96 24,793,090
15,000,000 Discount note......... 03/07/97 14,630,396
35,000,000 Discount note......... 06/02/97 33,626,483
New Center Asset
Trust:
25,000,000 Discount note......... 10/07/96 24,977,708
30,000,000 Discount note......... 11/05/96 29,841,625
25,000,000 Discount note......... 11/12/96 24,839,875
35,000,000 Discount note......... 11/22/96 34,729,528
ODC Capital
Corporation:
23,500,000 Discount note(a)...... 10/07/96 23,479,046
38,000,000 Discount note(a)...... 10/21/96 37,884,944
28,283,000 Discount note(a)...... 10/28/96 28,168,454
15,000,000 Orix America Inc.,
Sanwa Bank Ltd. LOC,
Discount note(a).... 11/15/96 14,898,938
16,000,000 Renault Credit
International,
Discount note....... 12/20/96 15,801,956
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 6
NATIONS FUND
NATIONS PRIME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE OBLIGATIONS -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
Sumitomo Corporation
of America:
$ 24,500,000 Discount note......... 10/01/96 $ 24,500,000
20,000,000 Discount note......... 10/01/96 20,000,000
25,000,000 Discount note......... 10/07/96 24,976,625
20,000,000 Discount note......... 10/10/96 19,972,400
15,000,000 Discount note......... 10/15/96 14,968,208
25,000,000 Discount note......... 11/08/96 24,856,445
25,000,000 Discount note......... 11/12/96 24,840,166
10,000,000 Discount note......... 11/18/96 9,926,933
17,752,000 Discount note......... 12/02/96 17,585,378
25,000,000 Discount note......... 12/30/96 24,647,500
Tri-Lateral Capital
(USA) Inc.:
10,838,000 Discount note(a)...... 10/15/96 10,815,029
23,800,000 Discount note(a)...... 10/21/96 23,726,220
23,500,000 Discount note(a)...... 10/25/96 23,414,617
22,450,000 Discount note(a)...... 11/18/96 22,287,462
17,450,000 Discount note(a)...... 11/18/96 17,323,197
10,140,000 Discount note(a)...... 12/13/96 10,024,854
29,200,000 Discount note(a)...... 12/16/96 28,856,024
1,548,364,168
CORPORATE NOTES -- 20.0%
Abbey National
Treasury Services:
30,000,000 5.080%................ 02/27/97 29,995,482
25,000,000 5.045%................ 03/03/97 24,988,953
25,000,000 5.110%................ 03/17/97 24,984,585
Bankers Trust Company
of New York:
100,000,000 5.380%(+)............. 10/01/96(+++) 100,000,000
325,000 7.250%................ 11/01/96 325,325
Bear Stearns &
Company, Inc.:
50,000,000 5.3800%(+)............ 10/01/96(+++) 50,000,000
25,000,000 5.4000%(+)............ 10/01/96(+++) 25,000,000
35,000,000 5.4875%(+)............ 10/04/96(+++) 35,000,000
50,000,000 5.0250%............... 02/10/97 50,000,000
25,000,000 5.2500%............... 02/26/97 25,000,000
15,000,000 5.1150%............... 02/28/97 15,000,000
Beta Finance Inc.:
75,000,000 5.560%(+)............. 10/01/96(+++) 75,000,000
25,000,000 5.730%(+)............. 10/01/96(+++) 25,000,000
Chrysler Financial
Corporation:
16,890,000 8.125%................ 12/16/96 16,969,461
14,750,000 7.630%................ 02/24/97 14,888,397
10,000,000 6.390%................ 10/03/97 10,018,928
CS First Boston:
25,000,000 5.340%(+)............. 10/01/96(+++) 25,000,000
25,000,000 5.360%(+)............. 10/01/96(+++) 25,000,000
25,000,000 5.380%(+)............. 10/01/96(+++) 25,000,000
5,000,000 Ford Motor Credit
Corporation,
8.000%.............. 10/01/96 5,000,000
General Motors
Acceptance
Corporation:
50,000,000 5.380%(+)............. 10/01/96(+++) 49,992,384
165,000 8.000%................ 10/01/96 165,009
1,000,000 5.250%................ 11/15/96 999,241
Lehman Brothers
Holdings Inc.:
$ 50,000,000 5.5727%(+)............ 10/08/96(+++) $ 50,000,000
18,530,000 8.3750%............... 04/01/97 18,800,391
Merrill Lynch &
Company Inc.:
50,000,000 5.360%(+)............. 10/01/96(+++) 50,000,000
25,000,000 5.370%(+)............. 10/01/96(+++) 25,000,000
25,000,000 5.440%(+)............. 10/03/96 25,000,000
10,000,000 5.120%................ 02/27/97 9,966,802
2,835,000 Philip Morris
Companies Inc.,
8.750%.............. 12/01/96 2,849,420
834,944,378
TOTAL CORPORATE
OBLIGATIONS
(Cost $2,383,308,546)........ 2,383,308,546
------------
GUARANTEED INVESTMENT CONTRACTS -- 10.8%
Allstate Life
Insurance Company:
25,000,000 5.629%**(+)........... 12/29/96(#) 25,000,000
25,000,000 5.629%**(+)........... 12/29/96(#) 25,000,000
25,000,000 Anchor National Life
Insurance Company,
5.718%**(+)......... 12/29/96(#) 25,000,000
Commonwealth Life
Insurance Company,
Inc.:
10,000,000 5.670%**(+)........... 03/29/97(#) 10,000,000
62,000,000 5.670%**(+)........... 03/29/97(#) 62,000,000
50,000,000 General American Life
Insurance Company,
5.610%**(+)......... 10/07/96(#) 50,000,000
Life Insurance Company
of Georgia,
60,000,000 5.700%**(+)........... 03/29/97(#) 60,000,000
Life Insurance Company
of Virginia:
50,000,000 5.420%**(+)........... 10/07/96(#) 50,000,000
25,000,000 5.469%**(+)........... 10/07/96(#) 25,000,000
25,000,000 5.469%**(+)........... 10/07/96(#) 25,000,000
20,000,000 Peoples Security Life
Insurance Company,
5.670%**(+)......... 03/29/97(#) 20,000,000
50,000,000 Sun Life Insurance
Company of America,
5.770%**(+)......... 03/29/97(#) 50,000,000
25,000,000 Travelers Life
Insurance Company,
5.119%**(+)......... 10/01/96(+++) 25,000,000
------------
TOTAL GUARANTEED INVESTMENT
CONTRACTS
(Cost $452,000,000).......... 452,000,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 7
NATIONS FUND
NATIONS PRIME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS -- 1.1%
$ 22,800,000 Indiana (State of),
Financing Authority,
Economic Development
Revenue, Qualitech
Steel, National City
Bank, Indiana LOC,
5.570%(+)........... 10/02/96(+++) $ 22,800,000
24,500,000 Missouri (State of),
Economic Development
Revenue, Export and
Infrastructure
Board, (Biocraft
Laboratories Inc.
Project), PNC Bank
LOC,
5.450%(+)........... 10/02/96(+++) 24,500,000
TOTAL MUNICIPAL BONDS
(Cost $47,300,000)........... 47,300,000
------------
U.S. GOVERNMENT OBLIGATIONS -- 7.4%
Federal Home Loan
Bank:
50,000,000 5.360%(+)............. 10/01/96(+++) 50,000,000
18,000,000 4.619%+(+)............ 10/29/96(+++) 18,000,000
Student Loan Marketing
Association Floating
Rate Notes:
50,000,000 5.480%(+)............. 10/01/96(+++) 50,000,000
20,000,000 5.490%(+)............. 10/01/96(+++) 20,000,000
11,600,000 5.510%(+)............. 10/01/96(+++) 11,560,876
12,000,000 5.510%(+)............. 10/01/96(+++) 12,000,000
21,000,000 5.530%(+)............. 10/01/96(+++) 20,981,173
47,500,000 5.530%(+)............. 10/01/96(+++) 47,335,263
70,000,000 5.620%(+)............. 10/01/96(+++) 70,000,000
10,000,000 5.670%(+)............. 10/01/96(+++) 10,000,000
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(Cost $309,877,312).......... 309,877,312
------------
U.S. TREASURY OBLIGATIONS -- 1.5%
U.S. Treasury Notes:
25,000,000 6.750%................ 02/28/97 25,166,387
35,000,000 6.875%................ 02/28/97 35,239,818
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $60,406,205)........... 60,406,205
------------
TIME DEPOSITS -- 1.9%
TIME
DEPOSIT -- DOMESTIC -- 1.2%
50,000,000 Societe Generale,
5.875%.............. 10/01/96 50,000,000
TIME DEPOSIT -- EURO -- 0.7%
30,000,000 First Union National
Bank,
5.750%.............. 10/01/96 30,000,000
TOTAL TIME DEPOSITS
(Cost $80,000,000)........... 80,000,000
------------
REPURCHASE AGREEMENTS -- 8.0%
Agreement with Goldman Sachs &
Company, 5.820% dated
09/30/96
$ 80,000,000 to be repurchased at
$80,012,933 on 10/01/96,
collateralized by
$81,980,329 Qualified First
Tier Money Market
Instruments, 5.390% -- 5.700%
due 10/24/96 -- 10/31/96.....
$ 80,000,000
Agreement with Lehman Brothers
180,000,000 Inc., 5.900% dated 09/30/96
to be repurchased at
$180,029,500 on 10/01/96,
collateralized by
$183,601,000 Qualified First
Tier Money Market
Instruments, 5.300% -- 5.600%
due 10/01/96 -- 02/28/97.....
180,000,000
75,000,000 Agreement with Morgan Stanley
Group Inc., 5.800% dated
09/30/96 to be repurchased at
$75,012,083 on 10/01/96,
collateralized by $77,072,670
GNMA, 7.000% -- 10.000% due
06/15/16 -- 03/15/26......... 75,000,000
TOTAL REPURCHASE AGREEMENTS
(Cost $335,000,000).......... 335,000,000
------------
<CAPTION>
SHARES
- -----------
<C> <S> <C> <C>
MONEY MARKET FUNDS -- 0.2%
6,086,000 AIM Liquid Asset Portfolio..... 6,086,000
1,000,000 AIM Prime Fund................. 1,000,000
1,005,000 Dreyfus Cash Management Plus
Fund......................... 1,005,000
39,000 Fidelity Institutional Cash Portfolio... 39,000
TOTAL MONEY
MARKET FUNDS
(Cost $8,130,000)............ 8,130,000
------------
TOTAL INVESTMENTS
(Cost $4,207,896,443*)............. 100.9% 4,207,896,443
OTHER ASSETS AND
LIABILITIES (NET).................. (0.9) (39,311,158)
----
NET ASSETS........................... 100.0% $4,168,585,285
---- ------------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Restricted security (Note 5).
(+) Floating/variable rate note. The interest rate shown reflects the rate in
effect at September 30, 1996.
(++) Variable rate security. The interest rate shown is tied to the Cost of
Funds Index and resets on a delayed basis.
(+++) Reset date. Interest rates reset either daily, weekly, monthly, quarterly
or semi-annually.
(#) Security subject to a demand feature which allows the Fund to put the
security back to the issuer from 7 to 180 calendar days.
(a) Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
ABBREVIATIONS:
<TABLE>
<S> <C>
LOC Letter of Credit
GNMA Government National Mortgage Association
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 8
NATIONS FUND
Nations Government Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 89.9%
FEDERAL FARM CREDIT BANK -- 6.2%
$ 6,305,000 Discount note......... 10/01/96 $ 6,305,000
10,000,000 Discount note......... 10/10/96 9,986,785
2,000,000 Discount note......... 10/18/96 1,994,994
6,000,000 Discount note......... 11/08/96 5,965,800
------------
24,252,579
------------
FEDERAL FARM CREDIT BANK
FLOATING RATE NOTES -- 10.2%
20,000,000 5.200%(+)............. 10/01/96(+++) 19,994,166
20,000,000 5.200%(+)............. 10/01/96(+++) 19,992,055
------------
39,986,221
------------
FEDERAL FARM CREDIT BANK NOTES -- 7.6%
5,000,000 5.330%................ 11/01/96 4,999,288
15,000,000 5.600%................ 06/03/97 14,985,904
10,000,000 5.840%................ 06/18/97 9,989,096
------------
29,974,288
------------
FEDERAL HOME LOAN BANK -- 13.9%
20,000,000 Discount note......... 10/01/96 20,000,000
3,030,000 Discount note......... 10/04/96 3,028,649
8,000,000 Discount note......... 10/08/96 7,991,802
5,000,000 Discount note......... 10/21/96 4,985,639
5,000,000 Discount note......... 10/22/96 4,984,337
5,000,000 Discount note......... 10/28/96 4,980,462
9,010,000 Discount note......... 02/14/97 8,831,982
------------
54,802,871
------------
FEDERAL HOME LOAN BANK
FLOATING RATE NOTES -- 8.1%
25,000,000 5.360%(+)............. 10/01/96(+++) 25,000,000
7,000,000 4.619%+(+)............ 10/29/96(+++) 7,000,000
------------
32,000,000
------------
FEDERAL HOME LOAN BANK NOTES -- 9.4%
5,000,000 4.860%................ 02/07/97 4,997,084
25,000,000 5.265%................ 03/13/97 25,000,000
7,000,000 5.392%................ 03/18/97 7,000,000
------------
36,997,084
------------
STUDENT LOAN MARKETING ASSOCIATION
FLOATING RATE NOTES -- 32.0%
20,000,000 5.480%(+)............. 10/01/96(+++) 20,000,000
25,000,000 5.490%(+)............. 10/01/96(+++) 25,000,000
14,800,000 5.510%(+)............. 10/01/96(+++) 14,800,000
25,000,000 5.520%(+)............. 10/01/96(+++) 24,992,375
20,000,000 5.620%(+)............. 10/01/96(+++) 19,999,866
21,000,000 5.660%(+)............. 10/04/96 20,999,694
------------
125,791,935
------------
STUDENT LOAN MARKETING
ASSOCIATION NOTE -- 2.5%
$ 10,000,000 5.870%................ 06/30/97 $ 10,010,559
------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $353,815,537)............. 353,815,537
-----------
U.S. TREASURY OBLIGATIONS -- 8.9%
U.S. TREASURY BILLS -- 3.8%
10,000,000 Discount note......... 11/14/96 9,940,356
5,000,000 Discount note......... 02/06/97 4,915,555
------------
14,855,911
------------
U.S. TREASURY NOTES -- 5.1%
5,000,000 8.000%................ 01/15/97 5,039,735
5,000,000 6.250%................ 01/31/97 5,018,502
5,000,000 6.750%................ 02/28/97 5,032,018
5,000,000 6.875%................ 02/28/97 5,035,348
------------
20,125,603
------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $34,981,514).......... 34,981,514
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
- -----------
<C> <S> <C> <C>
MONEY MARKET FUND -- 0.4% (Cost $1,681,500)
1,681,500 Dreyfus Treasury Prime
Cash
Management Fund..... 1,681,500
-----------
TOTAL INVESTMENTS
(Cost $390,478,551*)................. 99.2% 390,478,551
OTHER ASSETS AND
LIABILITIES (NET).................... 0.8 3,080,609
---- ------------
NET ASSETS............................. 100.0% $393,559,160
---- -----------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
(+) Variable rate security. The interest rate shown reflects the rate in
effect at September 30, 1996.
(++) Variable rate security. Interest rate shown is tied to the Cost of Funds
Index and resets on a delayed basis.
(+++) Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 9
NATIONS FUND
NATIONS TREASURY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 20.1%
U.S. TREASURY BILLS -- 13.0%
$ 45,000,000 Discount note(#)....... 10/17/96 $ 44,893,911
40,000,000 Discount note(#)....... 11/14/96 39,761,422
160,000,000 Discount note(#)....... 02/06/97 157,150,667
20,000,000 Discount note(#)....... 04/03/97 19,458,222
25,000,000 Discount note(#)....... 05/01/97 24,187,333
30,000,000 Discount note(#)....... 08/21/97 28,509,600
313,961,155
U.S. TREASURY NOTES -- 6.3%
10,000,000 8.000%(#).............. 01/15/97 10,079,469
15,000,000 6.750%(#).............. 02/28/97 15,096,055
15,000,000 6.875%(#).............. 02/28/97 15,106,039
25,000,000 6.625%(#).............. 03/31/97 25,118,520
65,000,000 6.500%(#).............. 04/30/97 65,274,628
20,000,000 6.125%(#).............. 05/31/97 20,049,674
150,724,385
U.S. TREASURY STRIP -- 0.8%
20,000,000 Zero coupon............ 11/15/96 19,872,788
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $484,558,328)............ 484,558,328
------------
REPURCHASE AGREEMENTS -- 105.8%
REPURCHASE AGREEMENTS -- FIXED RATE -- 97.5%
625,000,000 Agreement with Bankers Trust N.Y.
Corporation, 5.750% dated
09/30/96 to be repurchased at
$625,099,826 on 10/01/96,
collateralized by: $156,712,078
U.S. Treasury Bills due
12/19/96 -- 06/26/97;
$31,440,580 U.S. Treasury Bond,
6.250% due 08/15/23;
$449,602,490 U.S. Treasury
Notes, 5.000% -- 7.875% due
10/31/96 -- 05/15/05........... 625,000,000
130,000,000 Agreement with CIBC Wood Gundy
Securities Corporation, 5.700%
dated 09/30/96 to be
repurchased at $130,020,583 on
10/01/96 collateralized by
$132,602,832 U.S. Treasury
Notes, 5.000% -- 9.000% due
05/15/98 --
02/28/01....................... 130,000,000
436,327,000 Agreement with CS First Boston
Corporation. Interest is
payable monthly. The agreement
is terminable by the Fund
daily. The final maturity date
of the agreement is 07/01/97
collateralized by: $102,727,989
GNMA, 6.500% -- 11.500% due
10/15/97 -- 09/15/36;
$62,199,167 U.S. Treasury
Strips, Principal Only, due
08/15/97 -- 08/15/22;
$280,834,991 U.S. Treasury
Strips, Interest Only, due
11/15/97 -- 11/15/22(##)....... 436,327,000
$ 55,000,000 Agreement with Dean Witter,
Discover & Company, 5.650%
dated 09/30/96 to be
repurchased at $55,008,632 on
10/01/96 collateralized by:
$17,152,883 U.S. Treasury
Bonds, 6.000% -- 6.250% due
08/15/23 -- 02/15/26;
$23,182,146 U.S. Treasury
Notes, 5.375% -- 8.000% due
10/15/96 -- 11/30/97;
$2,367,320 U.S. Treasury
Strips, Principal Only, due
08/15/00 -- 08/15/25;
$13,398,338 U.S. Treasury
Strips, Interest Only, due
11/15/96 -- 11/15/23........... $ 55,000,000
130,000,000 Agreement with Deutsche Bank
Financial Inc., 5.700% dated
09/30/96 to be repurchased at
$130,020,583 on 10/01/96
collateralized by: $116,143,189
U.S. Treasury Notes,
4.750% -- 8.000% due
02/15/97 -- 10/31/00;
$16,457,435 U.S. Treasury
Strip, Interest Only, due
11/15/98....................... 130,000,000
130,000,000 Agreement with Dresdner Bank
Inc., 5.680% dated 09/30/96 to
be repurchased at $130,020,511
on 10/01/96 collateralized by
$132,600,428 U.S. Treasury
Notes, 5.375% -- 7.750% due
11/30/97 -- 12/31/99........... 130,000,000
130,000,000 Agreement with Goldman, Sachs &
Company, 5.790% dated 09/30/96
to be repurchased at
$130,020,908 on 10/01/96
collateralized by $132,632,162
GNMA, 6.000% due 07/20/26...... 130,000,000
130,000,000 Agreement with HSBC Securities,
5.850% dated 09/30/96 to be
repurchased at $130,021,125 on
10/01/96 collateralized by
$132,601,086 GNMA, 5.500% --
8.000% due
11/15/07 -- 09/15/26........... 130,000,000
30,000,000 Agreement with Lehman Brothers
Inc., 5.750% dated 09/30/96 to
be repurchased at $30,004,792
on 10/01/96 collateralized by
$30,600,361 GNMA, 6.000% --
9.500% due 07/15/07 --
01/15/26....................... 30,000,000
130,000,000 Agreement with Merrill Lynch
Securities, 5.750% dated
09/30/96 to be repurchased at
$130,020,764 on 10/01/96
collateralized by $132,602,491
GNMA, 5.500% -- 9.500% due
08/15/07 -- 07/20/26........... 130,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 10
NATIONS FUND
NATIONS TREASURY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- FIXED
RATE -- (CONTINUED)
$130,000,000 Agreement with Morgan (J.P.)
Securities Inc., 5.700% dated
09/30/96 to be repurchased at
$130,020,583 on 10/01/96
collateralized by: $14,131 U.S.
Treasury Bond, 10.625% due
08/15/15; $35,868,079 U.S.
Treasury Notes,
6.125% -- 7.250% due
02/15/98 -- 09/30/00;
$96,719,684 U.S. Treasury
Strips, Interest Only, due
02/15/97 -- 02/15/26........... $ 130,000,000
130,000,000 Agreement with Morgan Stanley
Group Inc., 5.800% dated
09/30/96 to be repurchased at
130,020,944 on 10/01/96
collateralized by $142,189,347
GNMA, 6.750% -- 11.000% due
01/01/00 --
03/15/26....................... 130,000,000
30,000,000 Agreement with Smith Barney,
5.750% dated 09/30/96 to be
repurchased at $30,004,792 on
10/01/96 collateralized by
$30,603,299 GNMA, 5.000% --
8.000% due 07/20/25 --
11/20/25....................... 30,000,000
130,000,000 Agreement with UBS Securities,
Inc., 5.730% dated 09/30/96 to
be repurchased at $130,020,692
on 10/01/96 collateralized by
$132,603,249 GNMA,
7.000% -- 11.000% due
02/15/10 -- 09/15/26........... 130,000,000
-------------
2,346,327,000
-------------
REPURCHASE AGREEMENTS -- TERM -- 8.3%
100,000,000 Agreement with Lehman Brothers
Inc.**, 5.270%, with a final
maturity date of 10/01/96.
Interest receivable as of
September 30, 1996 was $43,917,
collateralized by $102,001,244
U.S. Treasury Bills due
03/06/97 -- 06/26/97........... 100,000,000
100,000,000 Agreement with Smith Barney**,
5.360% with a final maturity
date of 10/03/96. Interest
receivable as of September 30,
1996 was $44,667,
collateralized by: $88,716,650
GNMA, 6.500% -- 11.000% due
11/15/10 -- 9/20/26; $7,356,531
U.S. Treasury Note, 6.500% due
08/31/01; $5,926,998 U.S.
Treasury Strip, Interest Only,
due 08/15/05................... 100,000,000
-------------
200,000,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,546,327,000).......... 2,546,327,000
-------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUNDS -- 4.8%
45,603,000 AIM Treasury Fund................ $ 45,603,000
23,438,000 Dreyfus Treasury Cash
Management Fund................ 23,438,000
45,530,000 Fidelity Institutional Cash
Portfolio...................... 45,530,000
TOTAL MONEY
MARKET FUNDS
(Cost $114,571,000).............. 114,571,000
------------
TOTAL INVESTMENTS
(Cost $3,145,456,328*).............. 130.7% 3,145,456,328
OTHER ASSETS AND
LIABILITIES (NET)................... (30.7) (738,388,516)
------ --------------
NET ASSETS............................ 100.0% $2,407,067,812
------ ------------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Illiquid security (Note 5).
(#) Denotes security subject to repurchase under reverse repurchase agreement
as of September 30, 1996 (Note 1).
(##) Securities segregated as collateral for reverse repurchase agreement.
ABBREVIATION:
GNMA Government National Mortgage Association
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 11
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 101.9%
ALABAMA -- 3.5%
Alabama (State of), Housing
Finance Authority, Multi-family
Housing, AmSouth Bank N.A.,
Birmingham LOC:
$ 6,400,000 (Ski Lodge III), Series A,
3.900% 03/01/15(+)............. $ 6,400,000
6,000,000 (Turtle Lake Project), Series F,
4.000% 09/01/23(+)............. 6,000,000
1,690,000 Birmingham, Alabama, Industrial
Development Board, (Avondale --
Phase III), AmSouth Bank N.A.,
Birmingham LOC,
4.250% 06/01/00(+)............. 1,690,000
25,200,000 Birmingham, Alabama, Medical
Clinic Board Revenue,
(University of Alabama Health
Services), Morgan Guaranty
Trust Company,
New York LOC,
4.100% 12/01/26(++)............ 25,200,000
3,740,000 Gadsden, Alabama, Industrial
Development Board, Industrial
Development Revenue, (Keystone
Foods Corporation Project),
AMT, Bank of Scotland LOC,
4.000% 05/01/04(+)............. 3,740,000
4,000,000 Mobile, Alabama, Industrial
Development Board, (IB Chemical
Company Project), Industrial
Bank of Japan Ltd. LOC,
4.050% 12/01/97(+)............. 4,000,000
2,000,000 Opelika, Alabama, Industrial
Development Board, (Flowers
Baking Company Project), Trust
Company Bank LOC,
3.900% 12/01/99(+)............. 2,000,000
--------------
49,030,000
--------------
ALASKA -- 0.4%
5,000,000 Valdez, Alaska, Marine Term
Revenue, (Arco Transportation
Project), Series B, Atlantic
Richfield Guaranteed,
3.950% 05/01/31(+)............. 5,000,000
--------------
ARIZONA -- 5.9%
Apache (County of), Arizona,
Industrial Development
Authority, PCR, (Tuscon
Electric Power):
5,500,000 Series 83A, Barclays Bank Plc
LOC,
3.850% 12/15/18(+)............. 5,500,000
29,300,000 Series A, Chemical Bank LOC,
3.850% 06/15/20(+)............. 29,300,000
8,000,000 Goodyear, Arizona, Industrial
Development Authority, (Walle
Corporation Project), AMT, PNC
Bank LOC,
4.000% 05/01/15(+)............. 8,000,000
$ 4,200,000 Maricopa (County of), Arizona,
Industrial Development
Authority, Multi-family Housing
Revenue, (Privado Park
Apartments Project), Series A,
AMT, Bank One, Phoenix LOC,
4.000% 06/01/34(+)............. $ 4,200,000
Maricopa (County of), Arizona,
Unified School District:
10,000,000 No. 210 Phoenix, Tax Anticipation
Notes, Series A,
4.400% 07/31/97................ 10,031,998
5,000,000 No. 213 Tempe, Tax Anticipation
Notes, Series A,
4.400% 07/31/97................ 5,015,999
3,000,000 Mesa, Arizona, Development
Corporation Revenue, Special
Tax, Series B, Westdeutsche
Landesbank LOC,
3.650% 10/10/96................ 3,000,000
Pima (County of), Arizona,
Industrial Development
Authority, (Tuscon Electric),
Series A:
9,000,000 Bank of America LOC,
3.800% 07/01/22(+)............. 9,000,000
7,700,000 Societe Generale LOC,
3.900% 06/15/22(+)............. 7,700,000
--------------
81,747,997
--------------
ARKANSAS -- 0.9%
9,100,000 Little Rock, Arkansas, Health
Facilities Board, Hospital
Revenue, (Southwest Hospital
Project), FGIC Insured, Bank of
Nova Scotia SBPA,
3.675% 10/01/18(+)............. 9,100,000
3,250,000 Lowell, Arkansas, Industrial
Development Revenue, (Little
Rock Newspapers Inc. Project),
AMT, Bank of New York LOC,
4.050% 06/01/31(+)............. 3,250,000
--------------
12,350,000
--------------
CALIFORNIA -- 1.1%
500,000 Los Angeles, California, Regional
Airports, (Los Angeles
International Airport),
Wachovia Bank, Georgia LOC,
3.900% 12/01/24(++)............ 500,000
5,000,000 San Diego, California, Tax
Anticipation Notes, Series A,
4.500% 07/02/97................ 5,027,100
10,500,000 Student Education Loan Marketing
Corporation, Student Loan
Revenue, Series A, Dresdner
Bank LOC,
3.900% 11/01/02(+)............. 10,500,000
--------------
16,027,100
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 12
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
COLORADO -- 3.7%
Colorado (State of), Housing
Finance Authority, Multi-family
Housing Revenue:
$ 2,900,000 (Central Park Convention Center),
Chemical Bank LOC,
3.400% 05/01/97(+)............. $ 2,900,000
13,000,000 (Grants Plaza), Series A, Bankers
Trust Company LOC,
3.925% 11/01/09(+)............. 13,000,000
2,000,000 Colorado (State of), Post
Secondary Educational
Authority, Economic Development
Revenue, Bank One LOC,
3.950% 06/01/11(+)............. 2,000,000
Denver (City & County of),
Colorado, Airport Revenue, AMT:
3,500,000 Series F, Bank of Montreal LOC,
3.950% 11/15/25(+)............. 3,500,000
5,000,000 Series G, Credit Local
de France LOC,
3.950% 11/15/25(+)............. 5,000,000
2,205,000 El Paso (County of), Colorado,
Multi-family Housing Revenue,
(Briarglen Apartments Project),
General Electric Capital
Corporation Guaranty,
3.900% 12/01/24(+)............. 2,205,000
21,000,000 Moffat (County of), Colorado,
PCR, CFC Guarantee,
3.950% 07/01/20(+)............. 21,000,000
2,000,000 University of Colorado,
University Revenues, Morgan
Guaranty Trust Company SBPA,
Series A,
3.850% 06/01/20(+)............. 2,000,000
--------------
51,605,000
--------------
CONNECTICUT -- 0.2%
2,100,000 Connecticut (State of), Housing
Finance Authority, AMT,
3.650% 04/10/97................ 2,100,000
--------------
DELAWARE -- 1.7%
24,000,000 Delaware (State of), Economic
Development Authority Revenue,
Hospital Billing, Series C,
MBIA Insured, Morgan Stanley
Group, Inc. SBPA,
3.900% 12/01/15(+)............. 24,000,000
--------------
DISTRICT OF COLUMBIA -- 0.2%
2,900,000 District of Columbia, Hospital
Revenue, (Columbia Women's
Hospital), Series A, Mitsubishi
Bank Ltd. LOC,
4.000% 07/01/20(+)............. 2,900,000
--------------
FLORIDA -- 7.0%
$10,810,000 Broward (County of), Florida,
Housing Finance Authority,
Multi-family Housing Revenue,
(Fishermans Project),
Continental Casualty Surety
Bond,
3.600% 11/01/07(+)............. $ 10,810,000
Dade (County of), Florida,
Industrial Development
Authority:
2,200,000 (Dolphins Stadium Project),
Series C, Societe Generale LOC,
3.850% 01/01/16(+)............. 2,200,000
3,000,000 (Phase II Furniture Corporation
Project), AMT, Sun Bank N.A.
LOC,
4.000% 11/01/14(+)............. 3,000,000
14,998,500 Florida (State of), Board of
Education, Capital Outlay, BTP-
179, Bankers Trust Company
SBPA,
3.800% 06/01/01(+)............. 14,998,500
Florida (State of), Housing
Finance Agency, Multi-family
Housing Revenue:
2,400,000 (Clear Lake Project), Series D,
Continental Casualty Surety
Bond,
3.600% 01/01/34(+)............. 2,400,000
4,800,000 (Lake RMK Project),
Southtrust Bank LOC,
4.100% 06/01/07(+)............. 4,800,000
5,000,000 (Lakeside Project), Series B,
Bankers Trust Company LOC,
3.925% 08/01/06(+)............. 5,000,000
7,000,000 (Woodlands Project), Citibank
LOC,
3.800% 12/01/07(+)............. 7,000,000
6,000,000 Jacksonville, Florida, Health
Facilities Authority, Hospital
Revenue, (Baptist Health
Properties Project), Barnett
Bank,
Florida LOC,
4.100% 06/01/20(++)............ 6,000,000
2,500,000 Key West, Florida, Community
Redevelopment Agency Revenue,
(Pier House Joint Venture), PNC
Bank, Ohio LOC,
3.850% 01/01/98(+)............. 2,500,000
10,385,000 Orange (County of), Florida,
Health Facilities Authority
Revenue,
(SHCC Services Inc. Project),
Sun Bank N.A. LOC,
3.800% 12/01/23(+)............. 10,385,000
5,000,000 Orange (County of), Florida,
Housing Finance Agency,
Series B, AMT,
3.650% 04/01/97................ 5,000,000
3,350,000 St. Lucie (County of), Florida,
Industrial Development
Authority, (Florida
Convalescent Centers Project),
Series A, Toronto Dominion Bank
LOC,
3.650% 01/01/11(+++)........... 3,350,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 13
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
St. Lucie (County of), Florida,
PCR, (Florida Power and Light
Company):
$ 4,500,000 3.650% 10/25/96.................. $ 4,500,000
8,025,000 3.650% 11/22/96.................. 8,025,000
5,000,000 3.650% 11/22/96.................. 5,000,000
2,000,000 University of Northern Florida,
Capital Improvement, First
Union National Bank of
North Carolina LOC,
3.800% 11/01/24(+)............. 2,000,000
--------------
96,968,500
--------------
GEORGIA -- 5.0%
10,000,000 Albany-Dougherty, Georgia,
Payroll Development Authority,
PCR, (Philip Morris Companies
Inc. Project),
3.900% 10/01/05(+)............. 10,000,000
3,800,000 Cobb (County of), Georgia,
Residential Care Facilities for
the Elderly Authority, (North
Georgia Presbyterian Homes,
Inc. Project), Trust Company
Bank LOC,
3.900% 08/01/18(+)............. 3,800,000
3,000,000 Columbia (County of), Georgia,
Residential Care Facilities for
the Elderly Authority, (Augusta
Residential Center on Aging),
Trust Company Bank LOC,
3.900% 01/01/21(+)............. 3,000,000
2,250,000 Columbus, Georgia, Housing
Authority, Multi-family Housing
Revenue, (Quail Ridge Project),
Columbus Bank & Trust
Company LOC,
4.150% 02/01/05(+)............. 2,250,000
3,755,000 Columbus, Georgia, Industrial
Development Revenue, (Parisian
Inc. Project), Columbus Bank &
Trust Company LOC,
4.200% 04/01/07(+)............. 3,755,000
Dekalb (County of), Georgia,
Hospital Authority, Revenue
Anticipation Certificates:
3,960,000 (Dekalb Medical Center Project),
Trust Company Bank LOC,
3.900% 09/01/09(+)............. 3,960,000
2,000,000 (Egleston Childrens Health),
Series A, SunTrust Bank,
Atlanta LOC,
3.800% 12/01/17(+)............. 2,000,000
Dekalb (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue:
5,430,000 (Haystack Apartment Projects),
AMT, General Electric Capital
Corporation LOC,
4.150% 12/01/20(+)............. 5,430,000
6,625,000 (Stone Mill Run Apartments
Project), Series A, AMT, First
Tennessee Bank LOC,
4.000% 08/01/27(+)............. 6,625,000
Dekalb (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue (continued):
$ 5,000,000 (Terrace Club Project), Series B,
Southtrust Bank LOC,
4.000% 11/01/15(+)............. $ 5,000,000
2,900,000 Greene (County of), Georgia,
Industrial Development
Authority Revenue,
(Chipman-Union Inc. Project),
Series A, AMT, Trust Company
Bank LOC,
4.000% 03/01/05(+)............. 2,900,000
3,700,000 Gwinnett (County of), Georgia,
Industrial Development Revenue,
(United Stationers Company
Project), PNC Bank LOC,
3.850% 12/31/02(+)............. 3,700,000
3,000,000 Henry (County of), Georgia,
Development Authority Revenue,
(Georgia-Pacific Corporation
Project), Trust Company
Bank LOC,
3.900% 05/01/04(+)............. 3,000,000
5,000,000 Smyrna, Georgia, Multi-family
Housing Authority Revenue,
(Post VY Project), FNMA
Collateralized,
3.850% 06/01/25(+)............. 5,000,000
4,000,000 Tallapoosa, Georgia, Development
Authority Revenue, (U.S. Canada
Company Project), Harris Trust
& Savings Bank LOC,
3.850% 02/01/15(+)............. 4,000,000
5,000,000 Thomaston-Upson (County of),
Georgia, Industrial Development
Revenue, (Quad/Thomaston
Project), First Union National
Bank, Charlotte LOC,
3.950% 04/01/00(+)............. 5,000,000
--------------
69,420,000
--------------
IDAHO -- 2.1%
20,000,000 Idaho Health Facilities
Authority, Holy Cross Health
Systems Corporation Revenue,
Morgan Guaranty Trust Company
LOC,
3.850% 12/01/23(+)............. 20,000,000
9,000,000 Idaho (State of), Tax
Anticipation Notes,
4.500% 06/30/97................ 9,038,681
--------------
29,038,681
--------------
ILLINOIS -- 10.9%
5,775,000 Chicago, Illinois, Industrial
Development Revenue, (Eli's
Chicago's Finest Inc.),
First Bank LOC,
4.050% 11/01/26(+)............... 5,775,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 14
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
Chicago, Illinois, O'Hare
International Airport, American
Airlines Inc., AMT, Royal
Bank of Canada LOC:
$ 3,500,000 Series C,
4.000% 12/01/17(++).............. $ 3,500,000
3,000,000 Series D,
4.000% 12/01/17(++).............. 3,000,000
Illinois (State of), Development
Finance Authority:
26,100,000 (Chicago Symphony Orchestra),
Northern Trust Company LOC,
3.900% 12/01/28(+)............... 26,100,000
2,025,000 (L. Karp & Sons Inc.), American
National Bank & Trust Company,
Chicago LOC,
4.150% 09/01/05(+)............... 2,025,000
2,000,000 (Residential Rental -- River
Oak), AMT, Swiss Bank LOC,
3.900% 12/15/19(+)............... 2,000,000
9,000,000 (Roosevelt University Project),
American National Bank & Trust
Company LOC,
3.850% 04/01/25(+)............... 9,000,000
2,200,000 Illinois (State of), Development
Finance Authority, Economic
Development Revenue, (Addison
450 LP Project), American
National Bank & Trust Company
LOC,
4.000% 12/01/09(+)............... 2,200,000
Illinois (State of), Development
Finance Authority, Industrial
Development Revenue:
2,000,000 (MTI Project), AMT, Industrial
Bank of Japan Ltd., NY LOC,
4.125% 01/01/09(+)............... 2,000,000
3,200,000 (Randolph Pickle Corporation),
AMT, American National Bank &
Trust Company LOC,
4.050% 06/01/12(+)............... 3,200,000
2,515,000 (Xavier University), American
National Bank & Trust Company
LOC,
3.850% 10/01/12(+)............... 2,515,000
Illinois (State of), Development
Finance Authority, PCR:
2,500,000 (Diamond Star Meters Project),
Mitsubishi Bank Ltd. LOC,
4.100% 12/01/08(++).............. 2,500,000
7,100,000 (Edison Company Project), Series
C, ABN-AMRO Bank LOC,
3.850% 03/01/09(+)............... 7,100,000
(Illinois Power Company Project),
AMT:
9,300,000 Series B, Mitsubishi Bank Ltd.
LOC,
4.000% 03/01/17(+)............... 9,300,000
6,500,000 Series C, Canadian Imperial Bank
of Canada LOC,
3.850% 02/13/97(#)............... 6,500,000
Illinois (State of), Educational
Facilities Revenue:
$ 3,700,000 (Illinois Institute of
Technology), Series A, NBD Bank
N.A.; Northern Trust Company;
and Harris Trust & Savings Bank
LOC,
3.850% 09/01/25(+)............... $ 3,700,000
12,930,000 (University Pooled Financing
Program), FGIC Insured, First
National Bank of Chicago SBPA,
3.900% 12/02/05(+)............... 12,930,000
Illinois (State of), Health
Facilities Authority Revenue:
(Evanston Hospital Corporation
Project):
5,000,000 3.750% 02/28/97.................. 5,000,000
7,000,000 Series B,
3.150% 01/31/97.................. 7,000,000
5,000,000 Series 96,
3.950% 08/15/97.................. 5,000,000
6,700,000 (The Streeterville Corporation
Project), First National Bank
of Chicago LOC,
3.850% 08/15/24(+)............... 6,700,000
4,500,000 Kane (County of), Illinois,
Revenue Bonds, (Glenwood School
For Boys), Harris Trust &
Savings Bank, Illinois LOC,
3.850% 02/01/28(+)............... 4,500,000
3,200,000 Kane (County of), Illinois,
Unified School District No.
304, Tax Anticipation Warrants,
4.150% 12/03/96.................. 3,202,133
4,600,000 Orland Park, Illinois, Industrial
Development Revenue, (Panduit
Corporation Project), AMT,
Wachovia Bank, Georgia LOC,
4.000% 04/01/31(+)............... 4,600,000
7,195,000 Richton Park, Illinois,
Industrial Development Revenue,
(Sinter Metals Inc. Project),
AMT, Mellon Bank LOC,
4.050% 04/01/16(+)............... 7,195,000
1,900,000 Southwestern Illinois Development
Authority, Industrial
Development Revenue, (Robinson
Steel Company Inc. Project),
AMT, American National Bank &
Trust Company LOC,
4.000% 12/01/06(+)............... 1,900,000
3,000,000 Winnebago & Boone (Counties of),
Illinois, School District No.
205,
Tax Anticipation Warrants, FSA
Insured,
4.350% 10/30/96.................. 3,002,803
--------------
151,444,936
--------------
INDIANA -- 5.5%
7,000,000 Carmel Clay, Indiana, Tax
Anticipation Warrants, General
Funding,
3.750% 12/31/96.................. 7,003,347
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 15
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
INDIANA -- (CONTINUED)
$30,000,000 Indiana (State of), Bond Bank,
Advance Funding Program,
Promissory Notes,
4.250% 01/09/97.................. $ 30,069,210
Indiana (State of), Development
Finance Authority, Economic
Development Revenue:
2,400,000 (Fischer Enterprises Ltd
Project), PNC Bank LOC,
4.000% 11/01/01(+)............... 2,400,000
2,600,000 (Walker-Williams Lumber),
AMT, Columbus Bank & Trust
Company LOC,
4.200% 01/01/09(+)............... 2,600,000
2,500,000 Indianapolis, Indiana, Economic
Development Revenue,
(Art Center of Indianapolis
Project), Bank One, Indiana
LOC,
3.950% 02/01/98(+)............... 2,500,000
3,300,000 Indianapolis, Indiana,
Multi-family Housing Revenue,
(El Beulah Retirement Village),
National Bank of Detroit LOC,
3.850% 03/01/21(+)............... 3,300,000
3,500,000 Purdue University, Indiana,
University Revenue, Student
Fee, Series K,
3.800% 07/01/20(+)............... 3,500,000
16,255,000 Sullivan, Indiana, PCR, National
Rural/CFC Insured,
3.550% 10/25/96.................. 16,255,000
9,500,000 Vigo (County of), Indiana,
General Funded Warrants,
3.500% 12/27/96.................. 9,503,312
--------------
77,130,869
--------------
IOWA -- 0.5%
7,000,000 Iowa (State of), Corporation
Warrant Certificates, Series A,
FSA Insured-State Aid
Withholding,
4.750% 06/27/97(#)............... 7,039,672
--------------
KANSAS -- 1.6%
9,600,000 Kansas (State of), Development
Finance Authority, (Seaboard
Projects), Series A, AMT, Bank
of New York LOC,
4.050% 12/02/25(+)............... 9,600,000
10,200,000 Olathe, Kansas, Educational
Facilities Revenue, (Kansas
Independent College
Association), Series A, Midland
Bank Plc LOC,
3.800% 07/01/24+ 10,200,000
3,000,000 Wichita, Kansas, Industrial
Revenue,
(Brenner Tank Inc. Project), AMT,
Bank One LOC,
4.050% 12/01/05(+)............... 3,000,000
--------------
22,800,000
--------------
KENTUCKY -- 2.4%
$ 1,800,000 Hopkinsville, Kentucky,
Industrial Building Revenue,
(Brazeway Inc. Project), AMT,
NBD Bank, N.A. LOC,
4.000% 06/01/04(+)............... $ 1,800,000
5,000,000 Jefferson (County of), Kentucky,
Board of Education Revenue,
Anticipation Notes, Series N,
3.970% 06/30/97.................. 5,002,515
6,200,000 Kentucky League of Cities,
Revenue Anticipation Notes,
(Madisonville), Series B, Bank
One, Kentucky LOC,
3.950% 03/01/97(+)............... 6,200,000
2,600,000 Kentucky (Rural), Economic
Development Authority,
Industrial Building Revenue,
(Technos Corporation Project),
AMT, Industrial Bank of
Japan, Ltd. LOC,
4.400% 12/01/09(+)............... 2,600,000
3,500,000 Lebanon, Kentucky, Industrial
Development Revenue, (Wallace
Computer Services Inc.), AMT,
Wachovia Bank, Georgia LOC,
4.000% 06/01/19(+)............... 3,500,000
4,525,000 Lexington-Fayette, Kentucky,
Psychiatric Hospital Revenue,
(Charter Ridge Hospital
Project), Bankers Trust Company
LOC,
3.750% 03/01/05(+)............... 4,525,000
Lexington-Fayette, Kentucky,
Urban County Airport
Corporation Revenue, AMT,
Credit
Local de France LOC:
1,100,000 Series A,
4.100% 04/01/24(++)............ 1,100,000
3,100,000 Series B,
4.100% 04/01/24(++)............ 3,100,000
5,630,000 Louisville and Jefferson
(Counties of), Kentucky,
Visitors and Convention
Commission, FSA Insured,
HypoBank SBPA,
3.950% 01/01/24(+)............. 5,630,000
--------------
33,457,515
--------------
LOUISIANA -- 3.2%
8,000,000 Ascension Parish, Louisiana, PCR,
(Borden Inc. Project), Credit
Suisse LOC,
3.900% 12/01/09(+)............. 8,000,000
6,050,000 Caddo Parish, Louisiana,
Industrial Development Board,
(Frymaster Corporation
Project), Chemical Bank LOC,
3.850% 01/01/03(+)............. 6,050,000
5,100,000 Louisiana (State of), Public
Facilities Authority, Hospital
Revenue, (Charter Forest
Hospital Project), Bankers
Trust Company LOC, 3.850%
12/01/13(+).................... 5,100,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 16
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
LOUISIANA -- (CONTINUED)
$20,225,000 Louisiana (State of), Public
Facilities Authority, PCR,
(Ciba-Geigy Corporation
Project), Swiss
Bank LOC,
3.900% 12/01/04(+)............. $ 20,225,000
4,700,000 South Louisiana, Port Commission,
Marine Term Facilities Revenue,
(Occidental Petroleum), Credit
Suisse LOC,
3.900% 07/01/21(+)............. 4,700,000
--------------
44,075,000
--------------
MAINE -- 1.7%
18,150,000 Maine (State of), Solid Waste
Resources Recovery Revenue,
Series K, AMT, Midland
Bank Plc LOC,
3.950% 07/01/12(+)............. 18,150,000
5,000,000 Maine (State of), Tax
Anticipation Notes,
4.500% 06/27/97................ 5,022,155
--------------
23,172,155
--------------
MARYLAND -- 1.2%
6,600,000 Baltimore (City of), Maryland,
Economic Development Authority
Revenue, (Blue Circle Inc.
Project), Den Danske Bank LOC,
3.800% 12/01/17(+)............. 6,600,000
3,300,000 Baltimore (City of), Maryland,
Port Facilities Authority,
(Occidental Petroleum Company),
National Westminster Bank Plc
LOC,
3.500% 10/14/11(+++)........... 3,300,000
4,750,000 Maryland (State of), Economic
Development Revenue, (General
Binding Corporation Project),
AMT, Harris Trust & Savings
Bank LOC,
4.000% 03/01/26(+)............. 4,750,000
2,300,000 Maryland (State of), Industrial
Development Finance Authority,
(Rock-Tennessee Converting
Company), AMT, Trust Company
Bank LOC,
4.000% 05/01/06(+)............. 2,300,000
--------------
16,950,000
--------------
MICHIGAN -- 1.2%
3,425,000 Jackson (County of), Michigan,
Economic Development
Corporation, Industrial
Development Revenue, (Jackson
Association LLC),
Bank One, Dayton LOC,
3.950% 10/01/14(+)............. 3,425,000
8,000,000 Michigan (State of), Hospital
Financing Authority Revenue,
(St. Mary Hospital of Livonia),
Series A, Comerica Bank LOC,
3.950% 07/01/17(+)............. 8,000,000
$ 3,000,000 Michigan (State of), Housing
Development Authority, Limited
Obligation Revenue, (Pine Ridge
Project), National Westminster
Bank Plc LOC,
3.900% 10/01/07(+)............. $ 3,000,000
2,600,000 Michigan (State of), Strategic
Funding Ltd. Obligation
Revenue, (Uni Boring Company
Inc.), National Bank of Detroit
LOC,
3.900% 12/01/98(+)............. 2,600,000
--------------
17,025,000
--------------
MINNESOTA -- 1.3%
5,500,000 Duluth, Minnesota, Health Care
Facilities Revenue,
(Miller-Dwan Medical Center),
Series A, Citibank LOC,
3.800% 04/01/19(+)............. 5,500,000
6,050,000 Minneapolis, Minnesota, Community
Development Agency Revenue,
(Arena Acquisition Project),
Series A, First Bank LOC,
3.850% 10/01/24(+)............. 6,050,000
6,000,000 Rochester (City of), Minnesota,
Health Care Facilities Revenue,
(Mayo Medical Center), Series
92,
3.650% 10/24/96................ 6,000,000
--------------
17,550,000
--------------
MISSISSIPPI -- 0.9%
6,200,000 Lawrence (County of),
Mississippi, PCR,
(Georgia-Pacific Corporation
Project), Bank of Tokyo LOC,
3.925% 12/01/00(+)............. 6,200,000
Mississippi Business Finance
Corporation, Industrial
Development Revenue, AMT:
2,900,000 (Choctaw Maid Farms Inc.
Project), Rabobank Nederland
LOC,
4.000% 03/01/10(+)............. 2,900,000
3,000,000 (Nitek Metal Services Inc.
Project), AMT, Bank of Tokyo
LOC,
4.050% 03/01/05(+)............. 3,000,000
--------------
12,100,000
--------------
MISSOURI -- 1.9%
5,000,000 Kansas City, Missouri, Industrial
Development Revenue,
(Owens-Illinois Inc. Project),
IBJ Schroeder Bank & Trust, New
York LOC,
3.750% 12/31/08(+)............. 5,000,000
10,000,000 Missouri (State of), Health &
Educational Facilities
Authority Revenue, (Sisters of
Mercy Health), Series B,
ABN-AMRO Bank; Credit Suisse;
and Rabobank Nederland, New
York SBPA,
3.800% 12/01/16(+)............. 10,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 17
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSOURI -- (CONTINUED)
$ 9,725,000 Platte (County of), Missouri,
Industrial Development
Authority, Multi-family Housing
Revenue, (Wexford Place
Project), Bank One LOC,
3.950% 04/01/28(+)............. $ 9,725,000
2,400,000 St. Charles (County of),
Missouri, Development
Authority, Industrial Revenue,
(Venture Stores Inc. Project),
Bank of Nova Scotia LOC,
3.900% 10/01/06(+)............. 2,400,000
--------------
27,125,000
--------------
NEBRASKA -- 0.6%
5,000,000 Omaha, Nebraska, Public
Power District,
3.550% 10/25/96................ 5,000,000
4,000,000 York, Nebraska, Industrial
Development Revenue, (Sunstrand
Corporation Project), AMT,
Union Bank of Switzerland LOC,
3.650% 08/01/17(+)............. 4,000,000
--------------
9,000,000
--------------
NEW HAMPSHIRE -- 1.1%
15,500,000 New Hampshire (State of), Housing
Finance Authority, Series 1,
(Multi-family Housing,
Manchester), PNC Bank LOC,
3.850% 12/01/12(+)............. 15,500,000
--------------
NEW JERSEY -- 0.4%
5,000,000 Jersey City, New Jersey,
Anticipation Notes,
4.500% 09/26/97................ 5,021,313
--------------
NEW MEXICO -- 0.2%
3,100,000 Albuquerque, New Mexico, (Charter
Hospital Inc. Project), Bankers
Trust Company LOC,
3.850% 03/01/14(+)............. 3,100,000
--------------
NEW YORK -- 0.4%
5,000,000 Great Neck North, New York, Water
Authority, Systems Revenue,
Series A, FGIC Insured, FGIC
SBPA,
3.800% 01/01/20(+)............. 5,000,000
--------------
NORTH CAROLINA -- 3.3%
8,000,000 Bladen (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (BCH Energy LP
Project), AMT, Bank of Tokyo
LOC,
4.050% 11/01/20(+)............. 8,000,000
$10,855,000 Charlotte (County of), North
Carolina, Housing Authority,
Multi-family Housing Revenue,
(Merrywood Senior Adult
Project), AMT, Branch Banking
and Trust Company LOC,
3.950% 06/01/11(+)............. $ 10,855,000
3,000,000 Iredell, (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (Sullivan
Corporation Project), AMT, Bank
One LOC,
4.050% 01/01/11(+)............. 3,000,000
Mecklenburg (County of), North Carolina,
Industrial Facilities and Pollution
Control Finance Authority:
2,000,000 (Sterigenics International
Project), AMT, Comerica Bank,
California LOC,
3.950% 03/01/16(+)............. 2,000,000
2,125,000 (Virkler Company Project), AMT,
4.050% 12/01/04(+)............. 2,125,000
9,020,000 Mecklenburg (County of),
North Carolina, Series B, GO,
4.700% 03/01/97................ 9,074,560
4,400,000 Randolph (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (Wayne Steel Inc.),
AMT, Bank One, Akron LOC,
4.050% 09/01/05(+)............. 4,400,000
3,300,000 Stanley (County of), North
Carolina, Industrial
Development Authority, PCR,
(General Signal Corporation),
Wachovia
Bank, Georgia LOC,
3.900% 12/01/00(+)............. 3,300,000
3,810,000 Winston-Salem, North Carolina,
(Risk Acceptance Management
Corporation Project),
Certificates of Participation,
Series 1988, National
Westminster Bank Plc SBPA,
3.950% 07/01/09(+)............. 3,810,000
--------------
46,564,560
--------------
OHIO -- 1.6%
2,425,000 Defiance (County of), Ohio,
Industrial Development Revenue,
(Isaac Property Company),
Series A, Key Bank LOC,
2.850% 07/01/00(+)............. 2,425,000
4,200,000 Lorain (County of), Ohio,
Hospital Revenue, (Humility of
Mary Health Care Corporation
Hospital), Series B, PNC Bank
LOC,
3.850% 12/15/03(+)............. 4,200,000
10,000,000 Ohio (State of), Air Quality
Developement Authority,
(Duquesne Power), Union
Bank of Switzerland LOC,
3.950% 07/16/97................ 10,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 18
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- (CONTINUED)
$ 3,500,000 Ohio (State of), Water
Development Authority, AMT,
Union Bank of Switzerland LOC,
3.800% 05/01/97................ $ 3,500,000
2,400,000 St. Marys, Ohio, Industrial
Development Revenue, (Setex
Inc. Project), AMT, Industrial
Bank of Japan Ltd. LOC,
4.400% 12/01/01(+)............. 2,400,000
--------------
22,525,000
--------------
OKLAHOMA -- 0.4%
5,890,000 Oklahoma (State of), Housing
Finance Agency, Single Family
Housing Revenue, PFloats PT41,
AMT, GNMA Collateralized,
Commerzbank SBPA,
4.050% 08/01/18(+)............. 5,890,000
--------------
OREGON -- 0.6%
Portland (City of), Oregon,
Multi-family Housing Revenue:
1,000,000 (Union Station Project), AMT,
U.S. National Bank LOC,
4.000% 12/01/27(+)............. 1,000,000
5,500,000 (University Park Apartments
Project), Chase Manhattan
Bank LOC,
3.850% 10/01/11(+)............. 5,500,000
2,000,000 Washington (County of), Oregon,
Housing Authority, Multi-family
Housing Revenue, (Cedar Mill
Project), AMT, Societe Generale
LOC,
3.950% 09/20/25(+)............. 2,000,000
--------------
8,500,000
--------------
PENNSYLVANIA -- 5.2%
Allegheny (County of),
Pennsylvania, Industrial
Development Authority, Duquesne
Power:
5,000,000 Canadian Imperial Bank of
Commerce LOC,
3.750% 11/07/96................ 5,000,000
9,800,000 United Jewish Federation, Series
B, PNC Bank LOC,
3.850% 10/01/25(+)............. 9,800,000
Delaware Valley, Pennsylvania,
Regional Finance Authority:
10,000,000 Local Government Revenue, Series
C, Midland Bank LOC,
3.950% 12/01/20(+)............. 10,000,000
14,700,000 Series 1986, Midland Bank
Plc LOC,
3.950% 08/01/16(+)............. 14,700,000
10,000,000 Philadelphia, Pennsylvania,
School District, Tax and
Revenue Anticipation Notes,
4.500% 06/30/97................ 10,035,876
$ 5,025,000 Union (County of), Pennsylvania,
Hospital Authority Revenue,
(Evangelical Community
Hospital), Series B, PNC
Bank LOC,
3.850% 10/01/23(+)............. $ 5,025,000
Venango (City of), Pennsylvania,
Industrial Development
Authority Revenue, AMT,
National Westminster Bank Plc
LOC:
10,300,000 3.700% 10/11/96.................. 10,300,000
7,150,000 3.700% 10/22/96.................. 7,150,000
--------------
72,010,876
--------------
RHODE ISLAND -- 0.3%
4,000,000 Rhode Island (State of),
Industrial Facilities
Corporation, Industrial
Development Revenue, (Handy &
Harman Electric Project), Bank
of Nova Scotia LOC,
3.950% 04/01/04(+)............. 4,000,000
--------------
SOUTH CAROLINA -- 3.4%
6,100,000 Charleston, South Carolina,
Hospital Facilities Revenue,
(Brown Schools Charleston),
Bankers Trust Company LOC,
3.650% 06/01/11(+)............. 6,100,000
5,000,000 Charleston, South Carolina, Tax
Anticipation Notes, GO,
3.600% 03/14/97................ 5,002,151
8,700,000 Greenville (County of), South
Carolina, School District, GO,
3.500% 03/01/97................ 8,706,966
5,250,000 Kershaw (County of), South
Carolina, Industrial
Development Revenue, (Deroyal
Textiles Inc. Project), AMT,
Third National Bank, Nashville
LOC,
4.000% 12/01/07(+)............. 5,250,000
2,370,000 South Carolina (State of),
Housing Authority, Rental
Housing Revenue, (Hampton
Pointe Apartments Project),
Bank of New York LOC,
3.950% 12/01/07(+)............. 2,370,000
South Carolina (State of), Jobs,
Economic Development Authority,
Health Facilities Revenue:
5,960,000 (Martha Franks Baptist Center
Project), Wachovia Bank,
Columbia LOC,
3.900% 04/01/19(+)............. 5,960,000
3,400,000 (Specialty Equipment Companies
Project), AMT, Barclays Bank
Plc LOC,
4.050% 11/01/10(+)............. 3,400,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 19
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$10,000,000 University of South Carolina,
Athletic Facilities Revenue,
Bond Anticipation Notes,
3.200% 02/28/97.................. $ 10,000,000
--------------
46,789,117
--------------
TENNESSEE -- 2.0%
2,600,000 Chattanooga, Tennessee,
Industrial Development Board,
(Warehouse Row Limited
Project), ABN-AMRO Bank, Nevada
LOC,
3.850% 12/15/12(+)............. 2,600,000
6,969,000 Cumberland (County of),
Tennessee, Industrial
Development Board, Industrial
Development Revenue,
(Crossville Ceramics Company
Project), American National
Bank & Trust Company LOC,
3.850% 01/01/00(+)............. 6,969,000
2,300,000 Jackson (County of), Tennessee,
Industrial Development Board,
(Essette Project), Series A,
Bank of America, Illinois LOC,
3.950% 08/01/00(+)............. 2,300,000
13,150,000 Metropolitan Government of
Nashville & Davidson (Counties
of), Tennessee, Health and
Educational Facilities Board,
(Vanderbilt University),
3.500% 01/15/97(#)............. 13,155,445
3,245,000 Shelby (County of), Tennessee,
Health Educational & Housing
Facilities Board, Multi-family
Housing Revenue, (Flag Manor),
AMT, Federal Home Loan Bank,
Indianapolis LOC,
4.000% 01/01/23(+)............. 3,245,000
--------------
28,269,445
--------------
TEXAS -- 7.9%
3,800,000 Bexar (County of), Texas, (Army
Retirement), Series 85-B,
Rabobank Nederland LOC,
3.625% 07/01/11(+)............. 3,800,000
1,000,000 Brazos River, Texas, Higher
Educational Authority,
(Hoffman-Laroche), Bankers
Trust
Company LOC,
3.750% 04/01/02(+)............. 1,000,000
3,000,000 El Paso, Texas, Multi-family
Housing Finance Corporation,
(Viva Apartments Project), AMT,
General Electric Capital
Corporation LOC,
4.100% 09/01/23(+)............. 3,000,000
Harris (County of), Texas,
Health Facilities Revenue,
Development Corporation
Hospital Revenue:
4,700,000 (Methodist Hospital), Methodist
Hospital and Morgan Guaranty
Trust Company SBPA,
4.000% 12/01/25(++)............ 4,700,000
Harris (County of), Texas, Health
Facilities Revenue, Development
Corporation Hospital Revenue
(continued):
$ 2,000,000 (St. Luke's Episcopal Hospital),
Series A, St. Luke's Episcopal
SBPA,
4.000% 02/15/21(++)............ $ 2,000,000
3,300,000 (St. Luke's Episcopal Hospital),
Series C, Morgan Guaranty Trust
Company SBPA,
4.000% 02/15/16(++)............ 3,300,000
Harris (County of), Texas,
Industrial Development
Corporation, Industrial
Development Revenue:
4,000,000 (Forged Products Inc. Project),
AMT, Banc One LOC,
4.050% 05/01/03(+)............. 4,000,000
4,200,000 (Zeon Chemicals Project),
Industrial Bank of Japan, Ltd.
LOC,
4.400% 02/01/09(+)............. 4,200,000
10,500,000 Toll Road, Unlimited Tax, Series
G, Morgan Guaranty Trust
Company SBPA,
3.800% 08/01/20(+)............. 10,500,000
3,700,000 McAllen, Texas, Health Facilities
Development Revenue, PNC Bank
LOC,
3.900% 12/01/24(+)............. 3,700,000
9,200,000 Port Development Corporation,
(Pasadena Term Company
Project), ABN-AMRO Bank LOC,
4.050% 12/01/04(+)............. 9,200,000
2,600,000 Sulphur Springs, Texas,
Industrial Development
Authority, (Hon Industrial Inc.
Project), Credit Suisse LOC,
3.950% 12/01/13(+)............. 2,600,000
17,635,000 Texas (State of), Municipal Power
Agency Revenue, Pre-refunded at
100%,
14.625% 03/01/97............... 18,414,317
40,000,000 Texas (State of), Tax and Revenue
Anticipation Notes, Series A,
4.750% 08/29/97................ 40,281,151
--------------
110,695,468
--------------
UTAH -- 1.8%
5,000,000 Intermountain Power Agency, Utah,
Power Supply Revenue, Series F,
Morgan Guaranty Trust Company
LOC,
3.930% 06/16/97(#)............. 5,000,000
3,200,000 Murray (County of), Utah,
Industrial Development
Authority, (Hunter Douglas
Realty Property), AMT, ABN-AMRO
Bank LOC,
4.000% 09/01/14(+)............. 3,200,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 20
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
UTAH -- (CONTINUED)
$ 1,900,000 Salt Lake (City of), Utah,
Airport Revenue, Series A, AMT,
Credit Suisse, New York LOC,
3.900% 06/01/98(+)............. $ 1,900,000
14,300,000 Salt Lake (City of), Utah, Health
Care Facilities Revenue, Class
A, Westdeutsche Landesbank
SBPA,
3.800% 01/01/20(+)............. 14,300,000
--------------
24,400,000
--------------
VIRGINIA -- 0.8%
2,500,000 Colonial Heights, Virginia,
Industrial Development
Authority, (Philip Morris
Companies Project),
3.900% 03/01/05(+)............. 2,500,000
3,900,000 Greensville (County of),
Virginia, Industrial
Development Authority, PCR,
(Perdue Farms Inc. Project),
AMT, Trust Company Bank LOC,
4.000% 10/01/06(+)............. 3,900,000
3,300,000 Roanoke, Virginia, Industrial
Development Authority, Hospital
Revenue, (Roanoke Memorial
Hospital Project), Series C,
(Carilion Health Systems),
Morgan Guaranty Trust
Company SBPA,
3.750% 07/01/19(+)............. 3,300,000
2,000,000 Spotsylvania (County of),
Virginia, Industrial
Development Revenue, (Carlisle
Corporation Project), Trust
Company Bank LOC,
3.900% 06/01/08(+)............. 2,000,000
--------------
11,700,000
--------------
WASHINGTON -- 3.4%
Pierce (County of), Washington:
5,500,000 Economic Development Authority,
(CSX Corporation Project),
Deutsche Bank LOC,
3.900% 11/01/96(#)............. 5,500,000
3,000,000 Housing Authority Revenue,
(Eagles Watch Project), Key
Bank, Washington LOC,
3.750% 10/01/20(+)............. 3,000,000
Washington (State of), GO:
25,500,000 Series 96A, Landesbank Hessen
SBPA,
3.900% 06/01/20(+)............. 25,500,000
4,015,00 Series A,
6.500% 07/01/97................ 4,090,787
$ 7,075,000 Washington (State of), Housing
Finance Authority, Multi-family
Mortgage Revenue, (Inglenook
Court Project), AMT, Bank of
America LOC,
4.150% 07/01/25(++)............ $ 7,075,000
3,000,000 Washington (State of), Student
Loan Finance Association,
Series B, AMT, National
Westminster Bank Plc LOC,
3.700% 01/01/04(+)............. 3,000,000
--------------
48,165,787
--------------
WEST VIRGINIA -- 2.4%
10,000,000 Fayette (County of), West
Virginia, County Commission,
Solid Waste Disposal Facilities
Revenue, (Georgia-Pacific
Corporation Project), AMT,
Industrial Bank of Japan Ltd.
LOC,
3.700% 05/01/18(+)............. 10,000,000
23,580,000 West Virginia (State of),
Hospital Finance Authority,
Hospital Revenue, (St. Mary's
Hospital Project), Bank One
LOC,
3.900% 10/01/12(+)............. 23,580,000
--------------
33,580,000
--------------
WISCONSIN -- 2.1%
4,000,000 Menomonee Falls, Wisconsin,
Industrial Development
Authority Revenue, (Jemma LLC
Project), AMT, Bank One,
Milwaukee LOC,
4.050% 09/01/14(+)............. 4,000,000
Oshkosh, Wisconsin, Area School
District, Tax and Revenue
Anticipation Promissory Notes:
5,000,000 4.250% 08/20/97.................. 5,012,743
4,500,000 4.500% 08/20/97.................. 4,521,066
2,395,000 Pleasant Prairie, Wisconsin,
Industrial Development
Authority Revenue, (Nucon
Corporation Project), AMT,
American National Bank & Trust
Company, LOC,
4.000% 02/01/22(+)............. 2,395,000
5,200,000 Pewaukee, Wisconsin, School
District, Tax and Revenue
Anticipation Notes,
4.500% 09/22/97.................. 5,220,358
8,520,000 Wisconsin (State of), Health
Facilities Authority,
(Daughters of Charity),
3.850% 11/01/16(+)............. 8,520,000
--------------
29,669,167
--------------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $1,420,438,158)............ 1,420,438,158
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 21
NATIONS FUND
NATIONS TAX EXEMPT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUNDS -- 0.0%(##)
100,000 AIM Tax-Exempt Fund.............. $ 100,000
25,000 Fidelity Institutional Tax-Exempt
Cash Fund...................... 25,000
--------------
TOTAL MONEY
MARKET FUNDS
(Cost $125,000)................ 125,000
------------
TOTAL INVESTMENTS
(Cost $1,420,563,158*).............. 101.9% 1,420,563,158
OTHER ASSETS AND
LIABILITIES (NET)................... (1.9) (27,049,881)
----- --------------
NET ASSETS............................ 100.0% $1,393,513,277
---- ------------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
(+) Variable rate demand notes payable upon not more than seven calendar days'
notice. The interest rate shown reflects the rate in effect at
September 30, 1996.
(++) Variable rate demand notes payable upon not more than one calendar day's
notice. The interest rate shown reflects the rate in effect at
September 30, 1996.
(+++) Variable rate demand notes payable upon not more than thirty calendar
days' notice. The interest rate shown reflects the rate in effect at
September 30, 1996.
(#) Put date.
(##) Amount represents less than 0.1%.
Nations Tax Exempt Fund had the following industry concentrations greater than
10% at September 30, 1996 (as a percentage of net assets):
<TABLE>
<S> <C>
Medical Facilities Revenue 17.0%
Industrial Facilities Revenue 14.6
Housing Revenue 11.2
Pollution Control Revenue 10.4
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------
ABBREVIATIONS:
AMT Alternative Minimum Tax
CFC Cooperative Finance Corporation
FGIC Federal Guaranty Investment Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 22
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND FUND FUND FUND
-----------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value. See accompanying schedules (Note 1)
Securities................................................ $3,872,896,443 $390,478,551 $ 599,129,328 $1,420,563,158
Repurchase agreements..................................... 335,000,000 -- 2,546,327,000 --
-------------- ------------ -------------- --------------
Total investments....................................... 4,207,896,443 390,478,551 3,145,456,328 1,420,563,158
Cash........................................................ -- 129,943 670 271,962
Interest receivable......................................... 25,618,374 4,552,825 3,919,723 7,701,771
Dividends receivable........................................ 227,251 14,214 188,120 13,660
Receivable for Fund shares sold............................. 8,458,214 9,047 8,452,263 612,239
Prepaid expenses and other assets........................... 60,281 9,140 76,673 3,237
-------------- ------------ -------------- --------------
Total Assets.............................................. 4,242,260,563 395,193,720 3,158,093,777 1,429,166,027
-------------- ------------ -------------- --------------
LIABILITIES:
Payable for reverse repurchase agreements (Note 1).......... -- -- 436,327,000 --
Payable for Fund shares redeemed............................ 13,578,604 100,970 304,193,708 90,744
Payable for investment securities purchased................. -- -- -- 31,700,519
Investment advisory fee payable (Note 2).................... 241,771 33,441 170,323 152,420
Administration fee payable (Note 2)......................... 344,128 32,048 212,099 118,416
Shareholder servicing and distribution fees payable (Note
3)........................................................ 434,098 21,312 392,361 64,558
Transfer agent fees payable (Note 2)........................ 137,318 19,554 82,408 25,520
Custodian fees payable (Note 2)............................. 96,087 14,038 66,930 34,863
Dividends payable........................................... 11,981,449 1,391,314 9,340,674 3,398,534
Due to custodian............................................ 46,566,503 -- -- --
Accrued Trustees'/Directors' fees and expenses (Note 2)..... 124,989 21,883 86,183 54,198
Accrued expenses and other payables......................... 170,331 -- 154,279 12,978
-------------- ------------ -------------- --------------
Total Liabilities......................................... 73,675,278 1,634,560 751,025,965 35,652,750
-------------- ------------ -------------- --------------
NET ASSETS.................................................. $4,168,585,285 $393,559,160 $2,407,067,812 $1,393,513,277
------------ ------------ ------------ ------------
Investments, at cost........................................ $4,207,896,443 $390,478,551 $3,145,456,328 $1,420,563,158
------------ ------------ ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 23
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND FUND FUND FUND
-----------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income......................... $ -- $ 13,157 $ 10,103 $ 5,737
Accumulated net realized loss on investments sold........... (469,985) (62,742 ) (45,579) (68,933)
Paid-in capital............................................. 4,169,055,270 393,608,745 2,407,103,288 1,393,576,473
-------------- ------------ -------------- --------------
$4,168,585,285 $393,559,160 $2,407,067,812 $1,393,513,277
------------ ------------ ------------ ------------
NET ASSETS:
Primary A Shares............................................ $2,494,705,981 $309,517,445 $ 791,442,488 $1,010,789,693
------------ ------------ ------------ ------------
Primary B Shares............................................ $ 194,974,081 $20,759,069 $ 55,337,169 $ 15,852,017
------------ ------------ ------------ ------------
Investor A Shares........................................... $1,067,016,964 $17,674,963 $ 112,291,259 $ 131,947,939
------------ ------------ ------------ ------------
Investor B Shares........................................... $ 329,251,105 $43,457,433 $1,431,255,010 $ 180,923,839
------------ ------------ ------------ ------------
Investor C Shares........................................... $ 82,307,215 $ 2,141,586 $ 16,739,400 $ 53,986,789
------------ ------------ ------------ ------------
Investor D Shares........................................... $ 329,939 $ 8,664 $ 2,486 $ 13,000
------------ ------------ ------------ ------------
SHARES OUTSTANDING:
Primary A Shares............................................ 2,494,982,131 309,559,395 791,439,679 1,010,836,299
------------ ------------ ------------ ------------
Primary B Shares............................................ 194,995,481 20,761,684 55,336,973 15,852,552
------------ ------------ ------------ ------------
Investor A Shares........................................... 1,067,134,079 17,677,190 112,290,861 131,953,867
------------ ------------ ------------ ------------
Investor B Shares........................................... 329,287,243 43,462,910 1,431,249,932 180,932,032
------------ ------------ ------------ ------------
Investor C Shares........................................... 82,316,249 2,141,855 16,739,341 53,989,247
------------ ------------ ------------ ------------
Investor D Shares........................................... 329,977 8,665 2,485 13,001
------------ ------------ ------------ ------------
PRIMARY A SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
---- ----- ---- ----
PRIMARY B SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
---- ----- ---- ----
INVESTOR A SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
---- ----- ---- ----
INVESTOR B SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
---- ----- ---- ----
INVESTOR C SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
---- ----- ---- ----
INVESTOR D SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
---- ----- ---- ----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 24
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND FUND FUND FUND
-----------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest............................................................ $112,226,959 $11,639,867 $66,529,515 $25,510,137
Dividends........................................................... 1,424,991 89,408 504,850 127,999
------------ ----------- ----------- -----------
Total investment income......................................... 113,651,950 11,729,275 67,034,365 25,638,136
------------ ----------- ----------- -----------
EXPENSES:
Investment advisory fee (Note 2).................................... 4,194,741 885,340 2,528,920 2,866,756
Administration fee (Note 2)......................................... 2,077,821 221,332 1,252,674 716,689
Transfer agent fees (Note 2)........................................ 425,606 52,463 259,216 127,728
Custodian fees (Note 2)............................................. 281,082 38,974 201,217 102,962
Legal and audit fees................................................ 240,216 36,058 149,840 92,365
Trustees'/Directors' fees and expenses (Note 2)..................... 57,331 11,093 40,876 37,580
Other............................................................... 474,742 60,985 274,650 145,121
------------ ----------- ----------- -----------
Subtotal........................................................ 7,751,539 1,306,245 4,707,393 4,089,201
Shareholder servicing and distribution fees (Note 3):
Primary B Shares.................................................. 265,074 33,104 104,830 14,553
Investor A Shares................................................. 1,908,509 59,902 205,205 163,242
Investor B Shares................................................. 408,007 76,148 1,847,068 168,937
Investor C Shares................................................. 97,998 2,292 13,276 44,326
Investor D Shares................................................. 673 920 411 8
Fees waived by investment adviser (Note 2).......................... (1,525,800) (643,684 ) (953,821) (1,936,581 )
------------ ----------- ----------- -----------
Total expenses.................................................. 8,906,000 834,927 5,924,362 2,543,686
------------ ----------- ----------- -----------
NET INVESTMENT INCOME............................................... 104,745,950 10,894,348 61,110,003 23,094,450
------------ ----------- ----------- -----------
NET REALIZED GAIN ON INVESTMENTS (NOTE 1)........................... -- 166 11,375 --
------------ ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $104,745,950 $10,894,514 $61,121,378 $23,094,450
----------- ----------- ---------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 25
NATIONS FUND
NATIONS TREASURY FUND
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<S> <C> <C>
Cash flows from operating and investing activities:
Investment income received....................................................... $ 59,196,352
Payment of operating expenses.................................................... (5,822,305)
Net purchases and sales of short-term investments................................ (107,762,652)
----------------
Cash used by operating and investing activities.................................... $(54,388,605)
Cash flows from financing activities:
Proceeds from shares sold........................................................ 7,312,797,874
Payment for shares redeemed...................................................... (7,104,412,600)
Cash used from reverse repurchase agreement...................................... (95,429,000)
Distributions paid*.............................................................. (58,567,330)
----------------
Cash provided by financing activities.............................................. 54,388,944
------------
Increase in cash................................................................... 339
Cash at beginning of period........................................................ 331
------------
Cash at end of period.............................................................. $ 670
------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH USED BY
OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from operations............................... $ 61,121,378
Increase in investments.......................................................... $ (117,850,480)
Decrease in interest and dividends receivable.................................... 2,238,440
Decrease in other assets......................................................... 3,918
Increase in accrued expenses..................................................... 98,139
----------------
Cash used by operating and investing activities.................................... $(54,388,605)
------------
</TABLE>
- ---------------
* Non-cash activities include reinvestment of dividends of $2,834,881.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 26
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND FUND FUND FUND
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income.................................. $ 104,745,950 $10,894,348 $ 61,110,003 $ 23,094,450
Net realized gain on investments....................... -- 166 11,375 --
-------------- ------------ -------------- --------------
Net increase in net assets resulting from operations... 104,745,950 10,894,514 61,121,378 23,094,450
Distributions to shareholders from net investment
income:
Primary A Shares..................................... (63,300,754) (7,975,716 ) (21,160,991) (17,470,224)
Primary B Shares..................................... (5,219,220) (629,280 ) (2,067,743) (174,351)
Investor A Shares.................................... (26,258,772) (789,222 ) (2,806,333) (1,934,401)
Investor B Shares.................................... (8,031,192) (1,447,430 ) (34,807,017) (2,605,587)
Investor C Shares.................................... (1,929,682) (44,394 ) (264,086) (909,844)
Investor D Shares.................................... (6,330) (8,306 ) (3,833) (43)
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares..................................... 22,235,204 (27,249,529 ) (29,591,600) (67,976,606)
Primary B Shares..................................... 98,679,530 (10,822,420 ) 7,849,064 6,481,858
Investor A Shares.................................... (32,478,783) (31,070,346 ) 22,706,306 3,534,394
Investor B Shares.................................... (29,399,183) (19,160,586 ) (93,799,676) 48,012,205
Investor C Shares.................................... 7,485,653 411,104 7,956,121 (12,756,776)
Investor D Shares.................................... 289,503 6,548 372 10,934
-------------- ------------ -------------- --------------
Net increase/(decrease) in net assets.................. 66,811,924 (87,885,063 ) (84,868,038) (22,693,991)
NET ASSETS:
Beginning of period.................................... 4,101,773,361 481,444,223 2,491,935,850 1,416,207,268
-------------- ------------ -------------- --------------
End of period.......................................... $4,168,585,285 $393,559,160 $2,407,067,812 $1,393,513,277
-------------- ----------- -------------- --------------
Undistributed net investment income at end of period... $ -- $ 13,157 $ 10,103 $ 5,737
-------------- ----------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 27
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND(a) FUND(b) FUND(a) FUND(b)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income................................. $ 190,945,353 $ 8,158,679 $ 134,105,989 $ 15,271,173
Net realized loss on investments...................... (42,433) (1,658) (46,919) --
-------------- ------------ --------------- --------------
Net increase in net assets resulting from
operations.......................................... 190,902,920 8,157,021 134,059,070 15,271,173
Distributions to shareholders from net investment
income:
Primary A Shares.................................... (130,059,809) (5,993,420) (99,400,052) (11,805,259)
Primary B Shares.................................... (5,121,793) (454,644) (2,534,994) (116,636)
Investor A Shares................................... (39,740,146) (787,770) (5,129,970) (1,347,117)
Investor B Shares................................... (13,005,667) (882,980) (26,681,463) (1,418,100)
Investor C Shares................................... (3,015,901) (39,832) (350,433) (584,042)
Investor D Shares................................... (2,037) (33) (83) (19)
Distributions to shareholders from net realized gain
on investments:
Primary A Shares.................................... -- -- (6,502) --
Primary B Shares.................................... -- -- (176) --
Investor A Shares................................... -- -- (362) --
Investor B Shares................................... -- -- (1,930) --
Investor C Shares................................... -- -- (24) --
Investor D Shares................................... -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares.................................... (400,652,057) 3,872,972 (2,075,795,502) 173,638,492
Primary B Shares.................................... (29,817,441) 4,458,845 (9,326,431) (2,296,026)
Investor A Shares................................... 401,182,199 22,569,043 (17,889,209) 2,205,180
Investor B Shares................................... 141,690,333 35,541,203 1,472,486,586 46,541,215
Investor C Shares................................... 21,373,710 (2,683,604) 2,410,143 25,335,079
Investor D Shares................................... 38,442 32 82 18
-------------- ------------ --------------- --------------
Net increase/(decrease) in net assets................. 133,772,753 63,756,833 (628,161,250) 245,423,958
NET ASSETS:
Beginning of period................................... 3,968,000,608 417,687,390 3,120,097,100 1,170,783,310
-------------- ------------ --------------- --------------
End of period......................................... $4,101,773,361 $481,444,223 $ 2,491,935,850 $1,416,207,268
-------------- ----------- --------------- --------------
Undistributed net investment income at end of
period.............................................. $ -- $ 13,157 $ 10,103 $ 5,737
-------------- ----------- --------------- --------------
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31. The numbers reflected are for the period June 1, 1995 through March
31, 1996.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30. The numbers reflected are for the period December 1, 1995
through March 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 28
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown below for such transactions.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT
NATIONS PRIME FUND MONEY MARKET FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1996 PERIOD ENDED SEPTEMBER 30, 1996 PERIOD ENDED
(UNAUDITED) MARCH 31, 1996(a) (UNAUDITED) MARCH 31, 1996(b)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold......................... $ 1,207,957,237 $ 2,343,459,930 $ 159,421,532 $ 219,823,787
Issued in exchange for
Primary A Shares of
Peachtree:
Prime Money Market Fund
(Note 7)................. 46,492,996 -- -- --
Government Money Market
Fund (Note 7)............ -- -- 31,480,400 --
Issued as reinvestment of
dividends.................. -- 486,972 -- --
Redeemed..................... (1,232,215,029) (2,744,598,959) (218,151,461) (215,950,815)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ 22,235,204 $ (400,652,057) $ (27,249,529) $ 3,872,972
------------- ------------- ------------- -------------
PRIMARY B SHARES:
Sold......................... $ 882,334,403 $ 363,309,249 $ 81,998,017 $ 46,099,378
Redeemed..................... (783,654,873) (393,126,690) (92,820,437) (41,640,533)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ 98,679,530 $ (29,817,441) $ (10,822,420) $ 4,458,845
------------- ------------- ------------- -------------
INVESTOR A SHARES:
Sold......................... $ 1,739,707,730 $ 3,357,983,129 $ 15,484,515 $ 60,796,659
Issued as reinvestment of
dividends.................. 25,567,303 37,851,418 786,331 766,444
Redeemed..................... (1,797,753,816) (2,994,652,348) (47,341,192) (38,994,060)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ (32,478,783) $ 401,182,199 $ (31,070,346) $ 22,569,043
------------- ------------- ------------- -------------
INVESTOR B SHARES:
Sold......................... $ 684,572,655 $ 1,738,995,404 $ 47,957,991 $ 111,579,007
Issued as reinvestment of
dividends.................. 6,082,652 9,673,991 1,308,891 617,266
Redeemed..................... (720,054,490) (1,606,979,062) (68,427,468) (76,655,070)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ (29,399,183) $ 141,690,333 $ (19,160,586) $ 35,541,203
------------- ------------- ------------- -------------
INVESTOR C SHARES:
Sold......................... $ 118,975,636 $ 190,895,727 $ 2,308,456 $ 1,909,288
Issued as reinvestment of
dividends.................. 1,892,417 2,613,240 43,854 38,740
Redeemed..................... (113,382,400) (172,135,257) (1,941,206) (4,631,632)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ 7,485,653 $ 21,373,710 $ 411,104 $ (2,683,604)
------------- ------------- ------------- -------------
INVESTOR D SHARES:
Sold......................... $ 2,155,287 $ 92,585 $ 1,704,869 $ --
Issued as reinvestment of
dividends.................. 6,076 2,069 5,741 32
Redeemed..................... (1,871,860) (56,212) (1,704,062) --
--------------- --------------- ------------- -------------
Net increase................. $ 289,503 $ 38,442 $ 6,548 $ 32
------------- ------------- ------------- -------------
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 29
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS TREASURY FUND NATIONS TAX EXEMPT FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1996 PERIOD ENDED SEPTEMBER 30, 1996 PERIOD ENDED
(UNAUDITED) MARCH 31, 1996(a) (UNAUDITED) MARCH 31, 1996(b)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold......................... $ 1,031,280,831 $ 4,227,193,042 $ 728,125,671 $ 561,383,700
Issued as reinvestment of
dividends.................. -- 10,474 -- --
Redeemed..................... (1,060,872,431) (6,302,999,018) (796,102,277) (387,745,208)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ (29,591,600) $(2,075,795,502) $ (67,976,606) $ 173,638,492
------------- ------------- ------------- -------------
PRIMARY B SHARES:
Sold......................... $ 284,994,944 $ 250,262,684 $ 44,630,944 $ 14,219,439
Redeemed..................... (277,145,880) (259,589,115) (38,149,086) (16,515,465)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ 7,849,064 $ (9,326,431) $ 6,481,858 $ (2,296,026)
------------- ------------- ------------- -------------
INVESTOR A SHARES:
Sold......................... $ 642,310,588 $ 355,900,666 $ 207,681,446 $ 116,297,792
Issued as reinvestment of
dividends.................. 1,390,961 4,759,978 1,278,902 1,294,655
Redeemed..................... (620,995,243) (378,549,853) (205,425,954) (115,387,267)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ 22,706,306 $ (17,889,209) $ 3,534,394 $ 2,205,180
------------- ------------- ------------- -------------
INVESTOR B SHARES:
Sold......................... $ 5,342,739,588 $ 7,051,467,524 $ 261,586,960 $ 271,059,312
Issued as reinvestment of
dividends.................. 1,317,063 2,333,486 2,373,994 831,949
Redeemed..................... (5,437,856,327) (5,581,314,424) (215,948,749) (225,350,046)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ (93,799,676) $ 1,472,486,586 $ 48,012,205 $ 46,541,215
------------- ------------- ------------- -------------
INVESTOR C SHARES:
Sold......................... $ 18,778,938 $ 18,619,338 $ 82,139,816 $ 70,804,287
Issued as reinvestment of
dividends.................. 126,293 345,992 625,551 569,704
Redeemed..................... (10,949,110) (16,555,187) (95,522,143) (46,038,912)
--------------- --------------- ------------- -------------
Net increase/(decrease)...... $ 7,956,121 $ 2,410,143 $ (12,756,776) $ 25,335,079
------------- ------------- ------------- -------------
INVESTOR D SHARES:
Sold......................... $ 480,124 $ -- $ 11,123 $ --
Issued as reinvestment of
dividends.................. 564 82 23 18
Redeemed..................... (480,316) -- (212) --
--------------- --------------- ------------- -------------
Net increase................. $ 372 $ 82 $ 10,934 $ 18
------------- ------------- ------------- -------------
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET
ASSET TOTAL
VALUE DIVIDENDS FROM DIVIDENDS
BEGINNING OF NET INVESTMENT NET INVESTMENT AND
PERIOD INCOME INCOME DISTRIBUTIONS
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS PRIME FUND
PRIMARY A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0259 $(0.0259) $ (0.0259)
Period ended 03/31/1996(a)...................... 1.00 0.0468 (0.0468) (0.0468)
Year ended 05/31/1995........................... 1.00 0.0519 (0.0519) (0.0519)
Year ended 05/31/1994........................... 1.00 0.0318 (0.0318) (0.0318)
Year ended 05/31/1993........................... 1.00 0.0328 (0.0328) (0.0328)
Year ended 05/31/1992........................... 1.00 0.0506 (0.0506) (0.0506)
Year ended 05/31/1991........................... 1.00 0.0749 (0.0749) (0.0749)
Year ended 05/31/1990........................... 1.00 0.0855 (0.0855) (0.0855)
Year ended 05/31/1989........................... 1.00 0.0839 (0.0839) (0.0839)
Year ended 05/31/1988........................... 1.00 0.0675 (0.0675) (0.0675)
Period ended 05/31/1987*........................ 1.00 0.0277 (0.0277) (0.0277)
PRIMARY B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0247 $(0.0247) $ (0.0247)
Period ended 03/31/1996(a)...................... 1.00 0.0447 (0.0447) (0.0447)
Period ended 05/31/1995*........................ 1.00 0.0474 (0.0474) (0.0474)
INVESTOR A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0242 $(0.0242) $ (0.0242)
Period ended 03/31/1996(a)...................... 1.00 0.0438 (0.0438) (0.0438)
Year ended 05/31/1995........................... 1.00 0.0475 (0.0475) (0.0475)
Year ended 05/31/1994........................... 1.00 0.0283 (0.0283) (0.0283)
Year ended 05/31/1993........................... 1.00 0.0293 (0.0293) (0.0293)
Year ended 05/31/1992........................... 1.00 0.0470 (0.0470) (0.0470)
Period ended 05/31/1991*........................ 1.00 0.0617 (0.0617) (0.0617)
INVESTOR B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0247 $(0.0247) $ (0.0247)
Period ended 03/31/1996(a)...................... 1.00 0.0447 (0.0447) (0.0447)
Year ended 05/31/1995........................... 1.00 0.0493 (0.0493) (0.0493)
Period ended 05/31/1994*........................ 1.00 0.0015 (0.0015) (0.0015)
INVESTOR C SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0247 $(0.0247) $ (0.0247)
Period ended 03/31/1996(a)...................... 1.00 0.0447 (0.0447) (0.0447)
Year ended 05/31/1995........................... 1.00 0.0493 (0.0493) (0.0493)
Period ended 05/31/1994*........................ 1.00 0.0155 (0.0155) (0.0155)
INVESTOR D SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0234 $(0.0234) $ (0.0234)
Period ended 03/31/1996(a)...................... 1.00 0.0439 (0.0439) (0.0439)
Period ended 05/31/1995*........................ 1.00 0.0173 (0.0173) (0.0173)
</TABLE>
- ---------------
* Nations Prime Fund's Primary A, Primary B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on December 15,
1986, June 16, 1994, July 16, 1990, May 11, 1994, November 26, 1993 and
February 9, 1995, respectively.
(+) Annualized.
(++) Total return represents aggregate total return for the period indicated
and does not reflect the deduction of any applicable sales charges.
(+++) Unaudited.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end
was May 31.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
--------------------------------
NET RATIO OF RATIO OF RATIO OF
ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
PERIOD RETURN+(+) (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 2.62% $2,494,706 0.30%(+) 5.17%(+) 0.37%(+) $ 0.0255
1.00 4.79 2,472,469 0.30(+) 5.62(+) 0.37(+) 0.0463
1.00 5.32 2,873,096 0.30 5.23 0.38 0.0511
1.00 3.22 2,883,762 0.30 3.20 0.37 0.0311
1.00 3.33 1,156,266 0.30 3.25 0.36 0.0322
1.00 5.19(+++) 500,476 0.30 5.03 0.42 0.0494
1.00 7.75(+++) 574,993 0.30 7.47 0.44 0.0735
1.00 8.88(+++) 433,298 0.32 8.43 0.50(+++) 0.0731+++
1.00 8.71(+++) 115,295 0.35 8.11 0.55(+++) 0.0819+++
1.00 6.94(+++) 264,063 0.36 6.73 0.56(+++) 0.0655+++
1.00 2.79(+++) 252,562 0.35(+) 5.99(+) 0.65(+)/(+++) 0.0247+++
$1.00 2.49% $ 194,974 0.55%(+) 4.92%(+) 0.62%(+) $ 0.0243
1.00 4.57 96,305 0.55(+) 5.37(+) 0.62(+) 0.0442
1.00 4.84 126,120 0.55(+) 4.98(+) 0.63(+) 0.0466
$1.00 2.43% $1,067,017 0.65%(+) 4.82%(+) 0.72%(+) $ 0.0238
1.00 4.48 1,099,490 0.65(+) 5.27(+) 0.72(+) 0.0433
1.00 4.85 698,358 0.75 4.78 0.83 0.0467
1.00 2.86 511,833 0.65 2.85 0.72 0.0276
1.00 2.97 306,376 0.65 2.90 0.71 0.0287
1.00 4.81(+++) 281,101 0.65 4.67 0.77 0.0458
1.00 7.31(+++) 144,202 0.65(+) 6.69(+) 0.79(+) 0.0603
$1.00 2.49% $ 329,251 0.55%(+) 4.92%(+) 0.62%(+) $ 0.0243
1.00 4.57 358,646 0.55(+) 5.37(+) 0.62(+) 0.0442
1.00 5.03 216,973 0.56 4.97 0.64 0.0485
1.00 0.15 2 0.55(+) 2.95(+) 0.62(+) 0.0015
$1.00 2.49% $ 82,307 0.55%(+) 4.92%(+) 0.62%(+) $ 0.0243
1.00 4.57 74,822 0.55(+) 5.37(+) 0.62(+) 0.0442
1.00 5.03 53,451 0.56 4.97 0.64 0.0485
1.00 1.58 1,481 0.55(+) 2.95(+) 0.62(+) 0.0151
$1.00 2.36% $ 330 0.80%(+) 4.67%(+) 0.87%(+) $ 0.0230
1.00 4.49 40 0.67(+) 5.25(+) 0.74(+) 0.0434
1.00 1.74 2 0.55(+) 4.98(+) 0.63(+) 0.0165
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 32
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS
VALUE FROM FROM
BEGINNING OF NET INVESTMENT NET INVESTMENT NET REALIZED
PERIOD INCOME INCOME CAPITAL GAINS
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS GOVERNMENT MONEY MARKET FUND
PRIMARY A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0251 $(0.0251) --
Period ended 03/31/1996(a)...................... 1.00 0.0173 (0.0173) --
Year ended 11/30/1995........................... 1.00 0.0558 (0.0558) --
Year ended 11/30/1994........................... 1.00 0.0375 (0.0375) $ (0.0000)(#)
Year ended 11/30/1993........................... 1.00 0.0294 (0.0294) --
Year ended 11/30/1992........................... 1.00 0.0358 (0.0358) --
Period ended 11/30/1991*........................ 1.00 0.0571 (0.0571) --
PRIMARY B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0238 $(0.0238) --
Period ended 03/31/1996(a)...................... 1.00 0.0165 (0.0165) --
Year ended 11/30/1995........................... 1.00 0.0533 (0.0533) --
Period ended 11/30/1994*........................ 1.00 0.0200 (0.0200) $ (0.0000)(#)
INVESTOR A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0233 $(0.0233) --
Period ended 03/31/1996(a)...................... 1.00 0.0162 (0.0162) --
Year ended 11/30/1995........................... 1.00 0.0522 (0.0522) --
Year ended 11/30/1994........................... 1.00 0.0340 (0.0340) $ (0.0000)(#)
Year ended 11/30/1993........................... 1.00 0.0256 (0.0256) --
Year ended 11/30/1992........................... 1.00 0.0358 (0.0358) --
Period ended 11/30/1991*........................ 1.00 0.0571 (0.0571) --
INVESTOR B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0238 $(0.0238) --
Period ended 03/31/1996(a)...................... 1.00 0.0165 (0.0165) --
Year ended 11/30/1995........................... 1.00 0.0532 (0.0532) --
Period ended 11/30/1994*........................ 1.00 0.0222 (0.0222) $ (0.0000)(#)
INVESTOR C SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0238 $(0.0238) --
Period ended 03/31/1996(a)...................... 1.00 0.0165 (0.0165) --
Year ended 11/30/1995........................... 1.00 0.0532 (0.0532) --
Period ended 11/30/1994*........................ 1.00 0.0290 (0.0290) $ (0.0000)(#)
INVESTOR D SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0224 $(0.0224) --
Period ended 03/31/1996(a)...................... 1.00 0.0157 (0.0157) --
Period ended 11/30/1995*........................ 1.00 0.0418 (0.0418) --
<CAPTION>
TOTAL
DIVIDENDS
AND
DISTRIBUTIONS
---------------------------
<S> <C>
NATIONS GOVERNMENT MONEY MARKET FUND
PRIMARY A SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0251)
Period ended 03/31/1996(a)...................... (0.0173)
Year ended 11/30/1995........................... (0.0558)
Year ended 11/30/1994........................... (0.0375)
Year ended 11/30/1993........................... (0.0294)
Year ended 11/30/1992........................... (0.0358)
Period ended 11/30/1991*........................ (0.0571)
PRIMARY B SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0238)
Period ended 03/31/1996(a)...................... (0.0165)
Year ended 11/30/1995........................... (0.0533)
Period ended 11/30/1994*........................ (0.0200)
INVESTOR A SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0233)
Period ended 03/31/1996(a)...................... (0.0162)
Year ended 11/30/1995........................... (0.0522)
Year ended 11/30/1994........................... (0.0340)
Year ended 11/30/1993........................... (0.0256)
Year ended 11/30/1992........................... (0.0358)
Period ended 11/30/1991*........................ (0.0571)
INVESTOR B SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0238)
Period ended 03/31/1996(a)...................... (0.0165)
Year ended 11/30/1995........................... (0.0532)
Period ended 11/30/1994*........................ (0.0222)
INVESTOR C SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0238)
Period ended 03/31/1996(a)...................... (0.0165)
Year ended 11/30/1995........................... (0.0532)
Period ended 11/30/1994*........................ (0.0290)
INVESTOR D SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0224)
Period ended 03/31/1996(a)...................... (0.0157)
Period ended 11/30/1995*........................ (0.0418)
</TABLE>
- ---------------
* Nations Government Money Market Fund's Primary A, Primary B, Investor A,
Investor B, Investor C and Investor D Shares commenced operations on
December 3, 1990, June 16, 1994, February 11, 1991, May 17, 1994, March
21, 1994 and February 10, 1995, respectively.
(+) Annualized.
(++) Total return represents aggregate total return for the period indicated
and does not reflect the deduction of any applicable sales charges.
(+++) Unaudited.
(#) Amount represents less than $0.0001 per share.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end
was November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 33
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
NET RATIO OF RATIO OF RATIO OF
ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
PERIOD RETURN(++) (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 2.55% $309,517 0.30%(+) 5.00%(+) 0.59%(+) $ 0.0236
1.00 1.74 336,771 0.30(+) 5.20(+) 0.59(+) 0.0163
1.00 5.72 332,895 0.30 5.58 0.57 0.0531
1.00 3.84 432,729 0.30 3.79 0.59 0.0347
1.00 2.96 475,180 0.30 2.91 0.56 0.0269
1.00 3.63(+++) 414,412 0.42 3.55 0.58 0.0341
1.00 5.87(+++) 333,979 0.43(+) 5.49(+) 0.62(+) 0.0551
$1.00 2.42% $ 20,759 0.55%(+) 4.75%(+) 0.84%(+) $ 0.0223
1.00 1.66 31,581 0.55(+) 4.95(+) 0.84(+) 0.0155
1.00 5.45 27,122 0.55 5.33 0.82 0.0506
1.00 2.02 72,747 0.55(+) 3.54(+) 0.84(+) 0.0186
$1.00 2.36% $ 17,675 0.65%(+) 4.65%(+) 0.94%(+) $ 0.0218
1.00 1.62 48,742 0.65(+) 4.85(+) 0.94(+) 0.0152
1.00 5.34 26,175 0.65 5.23 0.92 0.0495
1.00 3.45 20,173 0.65 3.44 0.94 0.0311
1.00 2.60 10,499 0.61 2.60 0.87 0.0231
1.00 3.63(+++) 13,851 0.42 3.55 0.58 0.0341
1.00 5.86(+++) 8,949 0.43(+) 5.49(+) 0.62(+) 0.0551
$1.00 2.42% $ 43,457 0.55%(+) 4.75%(+) 0.84%(+) $ 0.0223
1.00 1.66 62,617 0.55(+) 4.95(+) 0.84(+) 0.0155
1.00 5.45 27,079 0.55 5.33 0.82 0.0505
1.00 2.24 11,955 0.55(+) 3.54(+) 0.84(+) 0.0206
$1.00 2.42% $ 2,142 0.55%(+) 4.75%(+) 0.84%(+) $ 0.0223
1.00 1.66 1,731 0.55(+) 4.95(+) 0.84(+) 0.0155
1.00 5.44 4,414 0.55 5.33 0.82 0.0505
1.00 2.94 476 0.55(+) 3.54(+) 0.84(+) 0.0268
$1.00 2.27% $ 9 0.80%(+) 4.50%(+) 1.09%(+) $ 0.0209
1.00 1.58 2 0.71(+) 4.79(+) 1.00(+) 0.0147
1.00 4.38 2 0.55(+) 5.33(+) 0.82(+) 0.0397
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 34
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET
ASSET DIVIDENDS DISTRIBUTIONS
VALUE FROM FROM
BEGINNING OF NET INVESTMENT NET INVESTMENT NET REALIZED
PERIOD INCOME INCOME CAPITAL GAINS
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS TREASURY FUND
PRIMARY A SHARES
Six months ended 09/30/1996(unaudited).......... $ 1.00 $0.0253 $(0.0253) --
Period ended 03/31/1996(a)...................... 1.00 0.0458 (0.0458) (0.0000)(#)
Year ended 05/31/1995........................... 1.00 0.0494 (0.0494) (0.0000)(#)
Year ended 05/31/1994........................... 1.00 0.0297 (0.0297) --
Year ended 05/31/1993........................... 1.00 0.0307 (0.0307) --
Year ended 05/31/1992........................... 1.00 0.0483 (0.0483) --
Year ended 05/31/1991........................... 1.00 0.0721 (0.0721) --
Year ended 05/31/1990........................... 1.00 0.0829 (0.0829) --
Year ended 05/31/1989........................... 1.00 0.0802 (0.0802) --
Year ended 05/31/1988........................... 1.00 0.0630 (0.0630) --
Period ended 05/31/1987*........................ 1.00 0.0262 (0.0262) --
PRIMARY B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0241 $(0.0241) --
Period ended 03/31/1996(a)...................... 1.00 0.0437 (0.0437) (0.0000)(#)
Period ended 05/31/1995*........................ 1.00 0.0449 (0.0449) (0.0000)(#)
INVESTOR A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0236 $(0.0236) --
Period ended 03/31/1996(a)...................... 1.00 0.0429 (0.0429) (0.0000)(#)
Year ended 05/31/1995........................... 1.00 0.0457 (0.0457) (0.0000)(#)
Year ended 05/31/1994........................... 1.00 0.0262 (0.0262) --
Year ended 05/31/1993........................... 1.00 0.0272 (0.0272) --
Year ended 05/31/1992........................... 1.00 0.0448 (0.0448) --
Period ended 05/31/1991*........................ 1.00 0.0592 (0.0592) --
INVESTOR B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0241 $(0.0241) --
Period ended 03/31/1996(a)...................... 1.00 0.0437 (0.0437) (0.0000)(#)
Year ended 05/31/1995........................... 1.00 0.0468 (0.0468) (0.0000)(#)
Period ended 05/31/1994*........................ 1.00 0.0015 (0.0015) --
INVESTOR C SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0241 $(0.0241) --
Period ended 03/31/1996(a)...................... 1.00 0.0437 (0.0437) (0.0000)(#)
Year ended 05/31/1995........................... 1.00 0.0468 (0.0468) (0.0000)(#)
Period ended 05/31/1994*........................ 1.00 0.0019 (0.0019) --
INVESTOR D SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $0.0222 $(0.0222) --
Period ended 03/31/1996(a)...................... 1.00 0.0404 (0.0404) --
Period ended 05/31/1995*........................ 1.00 0.0167 (0.0167) --
<CAPTION>
TOTAL
DIVIDENDS
AND
DISTRIBUTIONS
-----------------------------------------
<S> <C>
NATIONS TREASURY FUND
PRIMARY A SHARES
Six months ended 09/30/1996(unaudited).......... $ (0.0253)
Period ended 03/31/1996(a)...................... (0.0458)
Year ended 05/31/1995........................... (0.0494)
Year ended 05/31/1994........................... (0.0297)
Year ended 05/31/1993........................... (0.0307)
Year ended 05/31/1992........................... (0.0483)
Year ended 05/31/1991........................... (0.0721)
Year ended 05/31/1990........................... (0.0829)
Year ended 05/31/1989........................... (0.0802)
Year ended 05/31/1988........................... (0.0630)
Period ended 05/31/1987*........................ (0.0262)
PRIMARY B SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0241)
Period ended 03/31/1996(a)...................... (0.0437)
Period ended 05/31/1995*........................ (0.0449)
INVESTOR A SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0236)
Period ended 03/31/1996(a)...................... (0.0429)
Year ended 05/31/1995........................... (0.0457)
Year ended 05/31/1994........................... (0.0262)
Year ended 05/31/1993........................... (0.0272)
Year ended 05/31/1992........................... (0.0448)
Period ended 05/31/1991*........................ (0.0592)
INVESTOR B SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0241)
Period ended 03/31/1996(a)...................... (0.0437)
Year ended 05/31/1995........................... (0.0468)
Period ended 05/31/1994*........................ (0.0015)
INVESTOR C SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0241)
Period ended 03/31/1996(a)...................... (0.0437)
Year ended 05/31/1995........................... (0.0468)
Period ended 05/31/1994*........................ (0.0019)
INVESTOR D SHARES
Six months ended 09/30/1996 (unaudited)......... $ (0.0222)
Period ended 03/31/1996(a)...................... (0.0404)
Period ended 05/31/1995*........................ (0.0167)
</TABLE>
- ---------------
* The Nations Treasury Fund's Primary A, Primary B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on December 15,
1986, June 16, 1994, July 16, 1990, May 16, 1994, May 11, 1994 and
February 9, 1995, respectively.
(+) Annualized.
(++) Total return represents aggregate total return for the period indicated
and does not reflect the deduction of any applicable sales charges.
(+++) Unaudited.
(#) Amount represents less than $0.0001.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end
was May 31.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 35
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
NET RATIO OF RATIO OF RATIO OF
ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
PERIOD RETURN++ (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 2.57% $ 791,442 0.30%(+) 5.05%(+) 0.38%(+) $ 0.0249
1.00 4.67 821,030 0.30(+) 5.52(+) 0.37(+) 0.0453
1.00 5.05 2,896,868 0.30 4.99 0.35 0.0489
1.00 2.99 2,679,992 0.30 2.97 0.36 0.0292
1.00 3.12 2,956,796 0.30 3.02 0.36 0.0302
1.00 4.95(+++) 1,094,741 0.29 4.82 0.42 0.0470
1.00 7.46(+++) 955,186 0.25 7.04 0.43 0.0703
1.00 8.61(+++) 392,843 0.25 8.18 0.59(+++) 0.0693(+++)
1.00 8.33(+++) 90,946 0.39 7.93 0.58(+++) 0.0783(+++)
1.00 6.49(+++) 111,414 0.38 6.31 0.65(+++) 0.0603(+++)
1.00 2.64(+++) 66,221 0.35(+) 5.68(+) 0.75(+)/(+++) 0.0222(+++)
$1.00 2.44% $ 55,337 0.55%(+) 4.80%(+) 0.63%(+) $ 0.0237
1.00 4.46 47,488 0.55(+) 5.27(+) 0.62(+) 0.0432
1.00 4.56 56,815 0.55(+) 4.74(+) 0.60(+) 0.0444
$1.00 2.39% $ 112,291 0.65%(+) 4.70%(+) 0.73%(+) $ 0.0232
1.00 4.36 89,584 0.65(+) 5.17(+) 0.72(+) 0.0424
1.00 4.65 107,475 0.67 4.62 0.72 0.0452
1.00 2.67 74,195 0.65 2.62 0.71 0.0257
1.00 2.77 105,828 0.65 2.67 0.71 0.0266
1.00 4.57(+++) 90,917 0.64 4.47 0.76 0.0435
1.00 6.98(+++) 37,265 0.61(+) 6.53(+) 0.83(+) 0.0570
$1.00 2.44% $1,431,255 0.55%(+) 4.80%(+) 0.63%(+) $ 0.0237
1.00 4.46 1,525,048 0.55(+) 5.27(+) 0.62(+) 0.0432
1.00 4.76 52,564 0.56 4.73 0.61 0.0463
1.00 0.14 2 0.55(+) 2.72(+) 0.61(+) 0.0014
$1.00 2.44% $ 16,739 0.55%(+) 4.80%(+) 0.63%(+) $ 0.0237
1.00 4.46 8,783 0.55(+) 5.27(+) 0.62(+) 0.0432
1.00 4.76 6,373 0.56 4.73 0.61 0.0463
1.00 0.19 191 0.55(+) 2.72(+) 0.61(+) 0.0019
$1.00 2.24% $ 2 0.80%(+) 4.55%(+) 0.88%(+) $ 0.0218
1.00 4.09 2 0.64(+) 5.18(+) 0.71(+) 0.0399
1.00 1.67 2 0.55(+) 4.74(+) 0.60(+) 0.0162
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 36
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET
ASSET TOTAL
VALUE DIVIDENDS FROM DIVIDENDS
BEGINNING OF NET INVESTMENT NET INVESTMENT AND
PERIOD INCOME INCOME DISTRIBUTIONS
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS TAX EXEMPT FUND
PRIMARY A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0164 $(0.0164) $ (0.0164)
Period ended 03/31/1996(a)...................... 1.00 0.0112 (0.0112) (0.0112)
Year ended 11/30/1995........................... 1.00 0.0361 (0.0361) (0.0361)
Year ended 11/30/1994........................... 1.00 0.0257 (0.0257) (0.0257)
Year ended 11/30/1993........................... 1.00 0.0223 (0.0223) (0.0223)
Year ended 11/30/1992........................... 1.00 0.0267 (0.0267) (0.0267)
Year ended 11/30/1991........................... 1.00 0.0422 (0.0422) (0.0422)
Year ended 11/30/1990........................... 1.00 0.0550 (0.0550) (0.0550)
Year ended 11/30/1989........................... 1.00 0.0600 (0.0600) (0.0600)
Period ended 11/30/1988*........................ 1.00 0.0350 (0.0350) (0.0350)
PRIMARY B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0152 $(0.0152) $ (0.0152)
Period ended 03/31/1996(a)...................... 1.00 0.0104 (0.0104) (0.0104)
Year ended 11/30/1995........................... 1.00 0.0335 (0.0335) (0.0335)
Period ended 11/30/1994*........................ 1.00 0.0116 (0.0116) (0.0116)
INVESTOR A SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0152 $(0.0152) $ (0.0152)
Period ended 03/31/1996(a)...................... 1.00 0.0104 (0.0104) (0.0104)
Year ended 11/30/1995........................... 1.00 0.0335 (0.0335) (0.0335)
Year ended 11/30/1994........................... 1.00 0.0231 (0.0231) (0.0231)
Year ended 11/30/1993........................... 1.00 0.0198 (0.0198) (0.0198)
Year ended 11/30/1992........................... 1.00 0.0266 (0.0266) (0.0266)
Period ended 11/30/1991*........................ 1.00 0.0422 (0.0422) (0.0422)
INVESTOR B SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0154 $(0.0154) $ (0.0154)
Period ended 03/31/1996(a)...................... 1.00 0.0106 (0.0106) (0.0106)
Year ended 11/30/1995........................... 1.00 0.0342 (0.0342) (0.0342)
Period ended 11/30/1994*........................ 1.00 0.0141 (0.0141) (0.0141)
INVESTOR C SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0157 $(0.0157) $ (0.0157)
Period ended 03/31/1996(a)...................... 1.00 0.0107 (0.0107) (0.0107)
Year ended 11/30/1995........................... 1.00 0.0346 (0.0346) (0.0346)
Period ended 11/30/1994*........................ 1.00 0.0203 (0.0203) (0.0203)
INVESTOR D SHARES
Six months ended 09/30/1996 (unaudited)......... $ 1.00 $ 0.0135 $(0.0135) $ (0.0135)
Period ended 03/31/1996(a)...................... 1.00 0.0090 (0.0090) (0.0090)
Period ended 11/30/1995*........................ 1.00 0.0243 (0.0243) (0.0243)
</TABLE>
- ---------------
* The Nations Tax Exempt Fund's Primary A, Primary B, Investor A,
Investor B, Investor C and Investor D Shares commenced operations on
March 14, 1988, June 16, 1994, April 5, 1991, May 17, 1994, March 7,
1994 and February 10, 1995, respectively.
(+) Annualized.
(++) Total return represents aggregate total return for the period indicated
and does not reflect the deduction of any applicable sales charges.
(+++) Unaudited.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end
was November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 37
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
NET RATIO OF RATIO OF RATIO OF
ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
END OF TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
PERIOD RETURN+(+) (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 1.64% $1,010,790 0.30%(+) 3.28%(+) 0.57%(+) $ 0.0150
1.00 1.12 1,078,764 0.30(+) 3.35(+) 0.58(+) 0.0103
1.00 3.68 905,125 0.30 3.62 0.57 0.0335
1.00 2.60 820,677 0.27 2.59 0.59 0.0226
1.00 2.27 701,403 0.23 2.23 0.59 0.0187
1.00 2.70(+++) 329,265 0.40 2.65 0.57 0.0250
1.00 4.31(+++) 168,829 0.42 4.23 0.60 0.0404
1.00 5.63(+++) 173,834 0.40 5.51 0.75 0.0515
1.00 6.17(+++) 145,109 0.40 6.00 0.74 0.0566
1.00 3.55(+++) 143,245 0.40(+) 4.97(+) 0.75(+) 0.0325
$1.00 1.52% $ 15,852 0.55%(+) 3.03%(+) 0.82%(+) $ 0.0138
1.00 1.04 9,370 0.55(+) 3.10(+) 0.83(+) 0.0095
1.00 3.39 11,666 0.55 3.37 0.82 0.0309
1.00 1.17 18,207 0.52(+) 2.34(+) 0.84(+) 0.0102
$1.00 1.52% $ 131,948 0.55%(+) 3.03% (+) 0.82%(+) $ 0.0138
1.00 1.04 128,414 0.55(+) 3.10(+) 0.83(+) 0.0095
1.00 3.40 126,207 0.55 3.37 0.82 0.0309
1.00 2.36 151,714 0.52 2.34 0.84 0.0199
1.00 2.00 119,552 0.48 1.98 0.84 0.0162
1.00 2.68(+++) 80,158 0.55 2.50 0.72 0.0248
1.00 4.30(+++) 1,690 0.42(+) 4.23(+) 0.60(+) 0.0404
$1.00 1.57% $ 180,924 0.50%(+) 3.08% (+) 0.77%(+) $ 0.0140
1.00 1.06 132,914 0.50(+) 3.15(+) 0.78(+) 0.0097
1.00 3.47 86,374 0.50 3.42 0.77 0.0316
1.00 1.43 3 0.47(+) 2.39(+) 0.79(+) 0.0118
$1.00 1.58% $ 53,987 0.45%(+) 3.13%(+) 0.72%(+) $ 0.0143
1.00 1.07 66,743 0.45(+) 3.20(+) 0.73(+) 0.0098
1.00 3.52 41,409 0.45 3.47 0.72 0.0320
1.00 2.05 25,704 0.42(+) 2.44(+) 0.74(+) 0.0177
$1.00 1.36% $ 13 0.80%(+) 2.78%(+) 1.07%(+) $ 0.0121
1.00 0.91 2 0.69(+) 2.96(+) 0.97(+) 0.0081
1.00 2.61 2 0.45(+) 3.47(+) 0.72(+) 0.0225
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 38
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") and Nations Fund, Inc. (the "Company") are
registered under the Investment Company Act of 1940, as amended, (the "1940
Act"), as open-end investment companies. As of the date of this report, the
Trust offers thirty-two separate portfolios and the Company offers five separate
portfolios. Information presented in these financial statements pertains only to
Nations Prime Fund, Nations Government Money Market Fund, Nations Treasury Fund
and Nations Tax Exempt Fund (each a "Fund", and collectively, the "Funds"). The
financial statements for the remaining funds of the Trust and the Company are
presented under separate cover. The Funds currently offer six classes of shares:
Primary A Shares, Primary B Shares, Investor A Shares, Investor B Shares,
Investor C Shares and Investor D Shares. Shareholders of a Fund have equal
voting rights on matters affecting all shareholders of the Fund. In addition,
each class of shares of a Fund has exclusive voting rights on matters that
relate solely to its class, and separate voting rights on matters in which the
interests of one class of shares differ from the interests of any other class.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Funds in the preparation of
their financial statements.
Securities Valuation: The portfolio securities of each Fund are valued on the
basis of amortized cost, which approximates market value. Amortized cost
valuation involves initially valuing an instrument at its cost and thereafter
assuming a constant amortization to maturity of any discount or premium, as long
as the effect of fluctuating interest rates on the fair market value of the
instrument is not significant. Restricted securities and other assets are valued
at fair market value under the supervision of the Board of Trustees or the Board
of Directors.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets
with a current value at least equal to the amount of its when-issued purchase
commitments.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
This arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral is at
least equal at all times to the total amount of the repurchase obligations,
including interest. Generally, in the event of counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There would be a
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its right to dispose of the collateral securities, including the risk
of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its right. Unless permitted by the
Securities and Exchange Commission, the Fund will not enter into repurchase
agreements with its investment adviser, distributor or any of its affiliates.
The Funds' investment adviser, acting under the supervision of the Board of
Trustees or the Board of Directors, monitors the value of collateral received as
well as the creditworthiness of those banks and dealers with which the Funds
enter into repurchase agreements to evaluate potential risks.
Reverse Repurchase Agreements: The Funds may enter into reverse repurchase
agreements with institutions that the Funds' investment adviser has determined
are credit worthy. Under a reverse repurchase agreement, the Fund sells
securities and agrees to repurchase them at a mutually agreed upon date and
price. At the time the Fund enters into a reverse repurchase agreement, it
establishes a segregated account with its custodian bank in which it will
maintain cash, U.S. Government securities or other liquid high grade debt
obligations equal in value to the Fund's obligations arising under the reverse
repurchase agreement. Reverse repurchase agreements involve the risk that the
market value of the securities purchased with the proceeds from the sale of
securities received by the Fund may decline below the price of the securities
that the Fund is obligated to repurchase. Securities subject to repurchase under
reverse repurchase agreements are designated in the Schedule of Investments.
36
<PAGE> 39
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At September 30, 1996, the Nations Treasury Fund had reverse repurchase
agreements outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount................................................................ $436,327,000
Maturity Date.................................................................. 07/01/97
Market Value of Assets Sold Under Agreements................................... $464,685,540
</TABLE>
The average daily balance of reverse repurchase agreements outstanding during
the six months ended September 30, 1996 was $407,440,803.
The proceeds received by the Nations Treasury Fund under the reverse repurchase
agreements were reinvested in a tri-party repurchase agreement. Net fees earned
during the six months ended September 30, 1996, representing the difference
between interest rates on the reverse repurchase and repurchase agreements,
amounted to $348,803 and have been included in interest income in the Statements
of Operations.
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Realized gains and losses are computed on
the specific identification of the securities sold. Interest income, adjusted
for amortization of market discounts and premiums on investments, is earned from
the settlement date and is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date. Each Fund's investment income and realized and
unrealized gains and losses are allocated among classes based upon the relative
net assets of each class of shares.
Dividends and Distributions to Shareholders: It is the policy of each Fund to
declare dividends daily from net investment income and to pay such dividends
monthly. Each Fund will distribute net realized short-term capital gains
annually after the fiscal year in which earned or more frequently to maintain a
net asset value of $1.00 per share, unless offset by any available capital loss
carryforward. Additional distributions of net investment income and capital
gains may be made at the discretion of the Board of Trustees or the Board of
Directors in order to avoid application of the 4% non-deductible Federal excise
tax. Income distributions and capital gain distributions on a Fund level are
determined in accordance with Federal income tax regulations which may differ
from generally accepted accounting principles. These differences are primarily
due to timing differences and differing characterization of distributions made
by the Fund as a whole.
Federal Income Tax: Each Fund intends to qualify as a regulated investment
company by complying with the requirements of the Internal Revenue Code of 1986,
as amended, applicable to regulated investment companies and by distributing
substantially all of its earnings to its shareholders. Therefore, no Federal
income or excise tax provision is required.
Expenses: General expenses of the Trust or the Company are allocated to the
relevant Funds based upon relative net assets. Operating expenses directly
attributable to a Fund or class of shares are charged to such Fund's or class's
operations. Expenses of each Fund not directly attributable to the operations of
any class of shares are prorated among the classes based on the relative average
net assets of each class of shares.
Cash Flow Information: Cash, as used in the Statement of Cash Flows, is the
amount reported in the Statements of Assets and Liabilities and represents cash
on hand at custodian banks. The Trust and the Company issue and redeem shares,
invest in securities, and distribute dividends from net investment income and
net capital gains (which are either paid in cash or reinvested at the discretion
of shareholders). These activities are reported in the Statements of Changes in
Net Assets. Information on cash payments is presented in the Statement of Cash
Flows.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
The Trust and the Company each have, on behalf of its Funds, entered into an
investment advisory agreement, ("Investment Advisory Agreement") with
NationsBanc Advisors, Inc. ("NBAI"), a wholly-owned subsidiary of NationsBank,
N.A., ("NationsBank") pursuant to which NBAI provides investment advisory
services to the Funds. Under the terms of these Investment Advisory Agreements,
NBAI is entitled to receive an advisory fee from (i) Nations Government Money
Market Fund and Nations Tax Exempt Fund equal to the annual rate of 0.40% of the
average daily
37
<PAGE> 40
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
net assets of such Funds and (ii) Nations Prime Fund and Nations Treasury Fund
at the following annual rates of the combined average daily net assets of such
Funds, as follows:
<TABLE>
<CAPTION>
FEES ON COMBINED FEES ON COMBINED
ASSETS UP TO ASSETS EXCEEDING
$250 MILLION $250 MILLION
------------------------------------
<S> <C> <C>
Nations Prime Fund............................................. 0.25% 0.20%
Nations Treasury Fund.......................................... 0.25% 0.20%
</TABLE>
The Trust and the Company each have entered into sub-advisory agreements
("Sub-Advisory Agreements") with NBAI and TradeStreet Investment Associates,
Inc. ("TradeStreet"), a wholly-owned subsidiary of NationsBank. Under the terms
of these Sub-Advisory Agreements, TradeStreet is entitled to receive from NBAI a
sub-advisory fee for each Fund at the annual rate of 0.055% of each Fund's
average daily net assets.
Stephens Inc. ("Stephens") serves as the administrator of the Trust and the
Company pursuant to separate administration agreements ("Administration
Agreements"). First Data Investor Services Group, Inc. ("First Data"), a wholly-
owned subsidiary of First Data Corporation, serves as the co-administrator of
the Trust and the Company pursuant to separate co-administration agreements
("Co-Administration Agreements"). Pursuant to the Administration and Co-
Administration Agreements, the administrator and the co-administrator are
entitled to receive a combined fee, computed daily and paid monthly, at the
annual rate of 0.10% of the average daily net assets of the investment
portfolios of the Trust and the Company and the investment portfolios of the
Nations Fund Portfolios, Inc. (another registered investment company which is a
part of the Nations Fund Family) on a combined basis. NationsBank, serves as the
sub-administrator of the Trust and the Company pursuant to a sub-administration
agreement ("Sub-Administration Agreement") with Stephens. For the six months
ended September 30, 1996, Stephens earned $2,787,916 from the Funds for its
administration services of which $426,852 was paid to NationsBank for its
sub-administration services.
The investment adviser, sub-adviser, administrator and co-administrator may,
from time to time, reduce their fees payable by each Fund (either voluntarily or
pursuant to applicable state limitations). For the six months ended September
30, 1996, the investment adviser voluntarily waived the following fees:
<TABLE>
<CAPTION>
FEES
WAIVED
BY
ADVISER
----------
<S> <C>
Nations Prime Fund................................................................. $1,525,800
Nations Government Money Market Fund............................................... 643,684
Nations Treasury Fund.............................................................. 953,821
Nations Tax Exempt Fund............................................................ 1,936,581
</TABLE>
NationsBank of Texas, N.A. ("NationsBank of Texas") acts as the custodian for
the Funds and, for the six months ended September 30, 1996, earned $624,235 for
providing such services. First Data also serves as the transfer agent for the
Funds' shares. NationsBank of Texas also acts as the sub-transfer agent for the
Primary Shares of the Funds and, for the six months ended September 30, 1996,
earned approximately $11,586 for providing such services. Stephens also serves
as distributor of the Funds' shares.
No officer, director or employee of NBAI, TradeStreet, Stephens, First Data or
any affiliate thereof, receives any compensation from the Trust or the Company
for serving as a trustee, director, officer or employee of the Trust or the
Company ("Trustee or Director"). Both the Trust and the Company pay each Trustee
or Director an annual fee of $1,000 ($3,000 for the Chairman of the Board), plus
$500 per Fund and an additional $1,000 for each in-person board meeting, and
$500 for each telephonic board meeting attended. The Trust and the Company also
reimburse expenses incurred by each Trustee or Director in attending such
meetings.
The Trust's and the Company's eligible Trustees or Directors, respectively, may
participate in a non-qualified deferred compensation plan and retirement plan
which may be terminated at any time. All benefits provided under these plans are
unfunded and any payments to plan participants are paid solely out of the Funds'
assets. Income earned on each plan participant's deferral account is tied to the
rate of return of the eligible mutual funds selected by the participants or, if
no funds are selected, to the rate of return of Nations Treasury Fund. The
expense for the deferred compensation plan is included in the
"Trustees'/Directors' fees and expenses" line of the Statements of Operations.
38
<PAGE> 41
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust and the Company each have adopted shareholder servicing plans
("Servicing Plans") for Primary B Shares, Investor A Shares, Investor B Shares,
Investor C Shares and Investor D Shares of each Fund; and a distribution plan
("Distribution Plans") pursuant to Rule 12b-1 under the 1940 Act for Investor A
Shares, Investor B Shares and Investor D Shares of each Fund. The Servicing
Plans permit the Funds to compensate servicing agents and selling agents that
have entered into a servicing agreement with the Funds for services provided to
their customers that own Primary B Shares, Investor A Shares, Investor B Shares,
Investor C Shares and Investor D Shares, respectively. The Distribution Plans
permit the Funds to compensate or reimburse Stephens for any activities or
expenses primarily intended to result in the sale of the Funds' Investor A
Shares, Investor B Shares or Investor D Shares, respectively. Payments under the
plans are accrued daily and paid monthly at a rate set from time to time by the
Funds. Fees paid pursuant to the plans are charged as expenses of each Fund as
accrued to Primary B Shares, Investor A Shares, Investor B Shares, Investor C
Shares and Investor D Shares, respectively.
For the six months ended September 30, 1996, the effective rates paid by the
Funds, as a percentage of average daily net assets, pursuant to the plans are as
follows:
<TABLE>
<CAPTION>
PRIMARY B INVESTOR A INVESTOR A INVESTOR B INVESTOR B INVESTOR C INVESTOR D INVESTOR D
SERVICING SERVICING DISTRIBUTION SERVICING DISTRIBUTION SERVICING SERVICING DISTRIBUTION
FUND PLAN PLAN PLAN PLAN PLAN PLAN PLAN PLAN
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Prime Fund.... 0.25% 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.25%
Nations Government
Money Market Fund... 0.25% 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.25%
Nations Treasury
Fund................ 0.25% 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.25%
Nations Tax Exempt
Fund................ 0.25% 0.25% -- 0.20% -- 0.15% 0.25% 0.25%
</TABLE>
A substantial portion of the fees paid pursuant to the plans described above are
paid to affiliates of NationsBank, and NBAI.
4. SHARES OF BENEFICIAL INTEREST.
As of September 30, 1996, an unlimited number of shares without par value were
authorized for the Trust and 270,000,000,000 shares of $.001 par value capital
stock were authorized for the Company. The Trust's Declaration of Trust
authorizes the Board of Trustees to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedule of Capital Stock Activity.
5. RESTRICTED SECURITIES.
The following securities are illiquid and restricted as to resale and,
accordingly, are valued at fair market value in good faith by or under the
direction of the Trust's Board of Trustees or the Company's Board of Directors,
as applicable, taking into consideration such factors as the relevant Board
deems appropriate.
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of Nations Prime Fund's total net assets that each
security comprises as well as the aggregate cost of each such security at
September 30, 1996.
39
<PAGE> 42
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER MARKET OF COST AT
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS 09/30/96
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Allstate Life Insurance Company:
5.629% 12/29/96(#)............................ 11/01/95 $25,000,000 $1.00 $ 25,000,000 0.6% $ 25,000,000
5.629% 12/29/96(#)............................ 12/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
Anchor National Life Insurance Company,
5.718% 12/29/96(#)............................ 12/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
Commonwealth Life Insurance Company, Inc.:
5.670% 03/29/97(#)............................ 12/01/95 62,000,000 1.00 62,000,000 1.5 62,000,000
5.670% 03/29/97(#)............................ 02/02/96 10,000,000 1.00 10,000,000 0.2 10,000,000
Life Insurance Company of Georgia,
5.700% 03/29/97(#)............................ 01/01/96 60,000,000 1.00 60,000,000 1.4 60,000,000
Peoples Security Life Insurance Company,
5.670% 03/29/97(#)............................ 01/05/96 20,000,000 1.00 20,000,000 0.5 20,000,000
Sun Life Insurance Company of America,
5.770% 03/29/97(#)............................ 02/19/96 50,000,000 1.00 50,000,000 1.2 50,000,000
Travelers Life Insurance Company,
5.119% 10/01/96(+++).......................... 02/01/96 25,000,000 1.00 25,000,000 0.6 25,000,000
- -----------------------------------------------------------------------------------------------------------------------------
$302,000,000 7.2% $302,000,000
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(#) Put Date
(+++) Reset Date
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of Nations Treasury Fund's total net assets that
the security comprises as well as the aggregate cost of each such security at
September 30, 1996.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER MARKET OF COST AT
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS 09/30/96
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers Inc.,
5.270% 10/01/96............................ 03/19/96 $100,000,000 $1.00 $100,000,000 4.2% $100,000,000
Smith Barney,
5.360% 10/03/96............................ 09/13/96 100,000,000 1.00 100,000,000 4.2 100,000,000
- -----------------------------------------------------------------------------------------------------------------------------
$200,000,000 8.4% $200,000,000
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Certain securities may be sold only pursuant to certain legal restrictions, and
may be difficult to sell. No Fund will invest more than 10% of the value of its
net assets in securities that are illiquid.
The following securities of Nations Prime Fund are restricted to resale,
however, they are considered liquid due to the put feature which allows the Fund
to put the security back to the issuer at par value within seven calendar days
notice.
40
<PAGE> 43
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of Nations Prime Fund's total net assets that each
security comprises as well as the aggregate cost of each such security at
September 30, 1996.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER MARKET OF COST AT
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS 09/30/96
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
General American Life Insurance Company,
5.610% 10/07/96(#)............................ 02/01/96 $50,000,000 $1.00 $ 50,000,000 1.2% $ 50,000,000
Life Insurance Company of Virginia:
5.420% 10/07/96(#)............................ 09/02/96 50,000,000 1.00 50,000,000 1.2 50,000,000
5.469% 10/07/96(#)............................ 02/01/96 25,000,000 1.00 25,000,000 0.6 25,000,000
5.469% 10/07/96(#)............................ 03/01/96 25,000,000 1.00 25,000,000 0.6 25,000,000
- -----------------------------------------------------------------------------------------------------------------------------
$150,000,000 3.6% $150,000,000
- -----------------------------------------------------------------------------------------------------------------------------
(#) Put Date
</TABLE>
6. CAPITAL LOSS CARRYFORWARD.
At March 31, 1996, the Funds had available for Federal income tax purposes the
following unused capital losses:
<TABLE>
<CAPTION>
LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED
EXPIRING IN EXPIRING IN EXPIRING IN EXPIRING IN EXPIRING IN EXPIRING IN
1998 1999 2001 2002 2003 2004
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nations Prime Fund.... $ 216,957 $ 203,217 -- -- -- $24,136
Nations Government
Money Market Fund... -- -- -- $ 2,605 $58,645 1,658
Nations Treasury
Fund................ -- -- -- -- -- 6,459
Nations Tax Exempt
Fund................ -- -- $23,264 16,054 29,615 --
</TABLE>
Under the current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal year.
For the fiscal year ended March 31, 1996, Nations Prime Fund and Nations
Treasury Fund have elected to defer losses occurring between November 1, 1995
and March 31, 1996, under these rules, of $25,675 and $35,940, respectively.
7. REORGANIZATION.
The Acquiring Fund, as listed below, acquired the assets and certain liabilities
of the Acquired Fund, also listed below, in a tax-free exchange for shares of
the Acquiring Fund, pursuant to a plan of reorganization approved by the
Acquired Fund's shareholders. Total shares issued by the Acquiring Fund, the
value of the shares issued by the Acquiring Fund, the total net assets of the
Acquired Fund and the Acquiring Fund, and any unrealized appreciation included
in the Acquired Fund's total net assets at the acquisition date are as follows:
<TABLE>
<CAPTION>
SHARES VALUE OF TOTAL NET
ISSUED SHARES ISSUED ASSETS OF TOTAL NET ASSETS
ACQUIRING ACQUIRED ACQUISITION BY ACQUIRING BY ACQUIRING ACQUIRED OF ACQUIRING
FUND FUND DATE FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nations Prime Peachtree
Money Market Prime Money
Fund Market Fund 09/27/96 46,492,996 $ 46,492,996 $46,490,663 $ 4,147,941,938
Nations Peachtree
Government Government
Money Market Money Market
Fund Fund 09/27/96 31,480,400 31,480,400 31,477,446 364,861,596
<CAPTION>
TOTAL NET ASSETS
OF ACQUIRING
ACQUIRING FUND AFTER
FUND ACQUISITION
- ------------------------------------------------
<S> <C>
Nations Prime
Money Market
Fund $ 4,194,432,601
Nations
Government
Money Market
Fund 396,339,042
</TABLE>
41
<PAGE> 44
THE NATIONS FUND FAMILY
EQUITY FUNDS
GROWTH
Nations Capital Growth Fund
Nations Disciplined Equity Fund
Nations Emerging Growth Fund
Nations Emerging Markets Fund
Nations Equity Index Fund
Nations International Equity Fund
Nations Managed Index Fund
Nations Pacific Growth Fund
GROWTH AND INCOME
Nations Balanced Assets Fund
Nations Equity Income Fund
Nations Value Fund
BOND FUNDS
INCOME
Nations Diversified Income Fund
Nations Global Government Income Fund
Nations Government Securities Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund
Nations Strategic Fixed Income Fund
TAX-EXEMPT INCOME
Nations Florida Municipal Bond Fund
Nations Florida Intermediate Municipal Bond Fund
Nations Georgia Municipal Bond Fund
Nations Georgia Intermediate Municipal Bond Fund
Nations Maryland Municipal Bond Fund
Nations Maryland Intermediate Municipal Bond Fund
Nations North Carolina Municipal Bond Fund
Nations North Carolina Intermediate Municipal Bond Fund
Nations South Carolina Municipal Bond Fund
Nations South Carolina Intermediate Municipal Bond Fund
Nations Tennessee Municipal Bond Fund
Nations Tennessee Intermediate Municipal Bond Fund
Nations Texas Municipal Bond Fund
Nations Texas Intermediate Municipal Bond Fund
Nations Virginia Municipal Bond Fund
Nations Virginia Intermediate Municipal Bond Fund
Nations Municipal Income Fund
Nations Intermediate Municipal Bond Fund
Nations Short-Term Municipal Income Fund
MONEY MARKET FUNDS
Nations Government Money Market Fund
Nations Prime Fund
Nations Tax Exempt Fund
Nations Treasury Fund
For more complete information, including charges and expenses, please contact
your investment representative or Nations Fund at (800) 982-2271 for a current
prospectus. Please read the prospectus carefully before you invest or send
money.
<PAGE> 45
NATIONS
FUND
P.O. Box 346021
Charlotte, NC 28234-4602
Toll Free 1-800-982-2271
/ BULK RATE /
/ U.S. POSTAGE /
/ PAID /
/ BOSTON, MA /
/ PERMIT NO. /
/ 54201 /
SARA IN-97818-996
This report is submitted for the general information of shareholders of Nations
Fund. This material must be accompanied or preceded by a Nations Fund
prospectus.
