<PAGE> 1
[NATIONS FUND LOGO]
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND
NATIONS SHORT-TERM INCOME FUND
NATIONS DIVERSIFIED INCOME FUND
NATIONS STRATEGIC FIXED INCOME FUND
A N N U A L
For the Year Ended November 30, 1995
R E P O R T
<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, 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: NATIONSBANK, N.A. ("NATIONSBANK")
<PAGE> 3
NATIONS FUND TRUST
DEAR SHAREHOLDER:
We are pleased to present the annual report for Nations Fund Trust for the
fiscal year ended November 30, 1995. During this period of bullish growth across
many financial markets, assets of the Nations Fund family of mutual funds
surpassed the $17 billion level.
Overall, 1995 marked a period that many investors will look back upon with great
fondness in the years to come. It offered the potential for investors to enjoy
significant returns in an environment marked by subdued volatility. As we look
forward to the opportunities 1996 presents, it is appropriate to reflect upon
the conclusions that can be drawn from market performance over the past twelve
months.
FINANCIAL MARKETS SUMMARY
The past year produced ideal market conditions for U.S. financial assets.
Historians might well cite 1995 as the definitive case study of a bull market.
Indeed, four factors coincided to make 1995 memorable. The U.S. economy grew at
a moderate pace. Inflation slowed more than most observers anticipated. Both the
executive and legislative branches of the U.S. government embraced a commitment
to reduce the federal deficit and U.S. corporations continued to produce strong
profitability. As a result, those who owned financial assets enjoyed strong
performance without having this performance eroded or undermined by the threats
of an overheated economy, creeping inflation or unbridled federal spending.
How could U.S. corporations produce strong profits without the pricing power of
inflation, the tail wind of economic strength or the catalyst of government
spending? Clearly, productivity and restructuring played an important role as
U.S. companies expanded margins. Moreover, profits earned abroad helped to
expand earnings for many companies. And the technology sector of the economy
played an important role as computers and telecommunications helped reshape many
companies.
On the international front, foreign stock markets lagged behind the U.S. equity
bull market. Foreign bond markets, with the exception of Japan, performed in
line with the U.S. bond market, providing double digit returns for bond
investors. A closer look at stock market facts actually show that foreign market
returns for 1995 were in line with their 1994 returns when foreign markets
outperformed the U.S. market by a sizable margin. The generally low correlation
between the U.S. and foreign stock markets continues to provide opportunities
for the portfolio diversification desired by many prudent investors. It is the
primary reason that diversifying overseas has become an important asset
allocation decision today.
The year also produced a record number of strategic mergers both domestically
and internationally. In numerous industries, companies forged ties in order to
build long-term profitability. Among others, Banking, Broadcasting, Basic
Industry, Software and Health Care experienced strong deal activity. Unlike
prior merger cycles, most of these deals were not merely the result of financial
engineering.
Overall, 1995 was an important reminder regarding the value of long-term
investing. As we entered 1995, investors might have been discouraged by the
meager U.S. returns of the prior year. Moreover, some investors might have been
tempted to take profits early in the year as the U.S. rally unfolded. The
winners in 1995 appear to have been those individuals and institutions with the
patience and vision for the long haul.
1
<PAGE> 4
FINANCIAL OUTLOOK
Investors can reap significant rewards when long-term investment discipline
intersects with ideal market conditions. This was the story for 1995.
But what about 1996? Must a bear market necessarily follow the bull market of
1995? Can interest rates continue to fall (and bond prices rise) and stocks
continue to rally at a torrid pace? We do not think that a strong bull market
necessarily must be followed by a big market sell-off. As long as the financial
environment remains favorable, prices can continue to appreciate. However, we do
not anticipate the pace of appreciation to be nearly as rapid or steady.
What about investing overseas? Should we expect a reversal of last year with
foreign stock markets outperforming U.S. stock markets in 1996? Over the long
term, there is a close correlation between real economic growth rates achieved
by a country and the performance of that country's stock market. Many of the
world's fastest growing economies are located in the Pacific Rim and it is here
where we see some of the most exciting opportunities for 1996 and beyond. We
also see opportunities in Japan, the world's largest economy and stock market
outside the United States, as it recovers from its recent problems.
Fundamentally, the fast growing Pacific Rim markets should outperform other
world markets, while the more developed countries will be reacting to the same
investment environment that exists in the United States.
While moderate economic conditions, low inflation and fiscal restraint are
likely to persist in 1996, corporate profitability is likely to slow. As a
result, we should not expect to see a market rally that is as broad as 1995, and
we should expect to see periodic corrections in both stocks and bonds. However,
even without strong earnings as an ally, the general market environment should
be positive enough to provide the potential for reasonable returns for investors
in the new year. Of course, it is not possible to predict market activity with
any certainty.
Thank you for placing your confidence in Nations Fund. We hope the information
contained in this report proves valuable as you pursue your investment goals.
Sincerely,
/s/ A. MAX WALKER
A. Max Walker
President and Chairman
of the Board
November 30, 1995
2
<PAGE> 5
We are pleased to present the following general investment strategies that
investors may want to consider. Specific investment decisions should always be
based on an analysis of your individual financial goals, tolerance for risk, and
investment timeframe.
PREPARE FOR 1996 WITH A
QUICK FINANCIAL REVIEW
- --------------------------------------------------------------------------------
Nineteen hundred ninety-five was an exciting year for investors. The Dow Jones
Industrial Average (DJIA) surged past the 5000 mark, breaking record after
record along the way. The National Association of Securities Dealers Automated
Quotations system (NASDAQ), Standard & Poor's Corporation 500 Composite Stock
Price Index (S&P 500) and New York Stock Exchange (NYSE) indices also reached
record levels. During this same period, falling interest rates resulted in a
bond rally, driving bond prices up and bond yields down.
DO CHANGES IN MARKET CONDITIONS WARRANT CHANGES IN YOUR
INVESTMENT STRATEGY?
Not necessarily. Short-term market performance should mean very little if your
investment goals are long-term in nature. For example, before leaping to take
profits when the stock market reaches new highs, as a long-term investor, you
should always consider why you invested in stocks in the first place.
If you're seeking long-term gains, a dramatic shift in your strategy today may
lead to difficult decisions later regarding when to get back into the stock
market -- something that is very difficult to time. That's why most financial
advisers encourage a proactive, rather than reactive, approach to investing. A
proactive approach involves careful planning, goal setting and a long-term
outlook.
As you begin to put your financial affairs in order for the new year, consider
the following:
HAVE YOUR INVESTMENT OBJECTIVES CHANGED?
A new job, retirement, the birth of a child or loss of a loved one are among the
many lifestyle changes that can have a significant impact on your finances.
Perhaps you need to establish a college fund for a child or grandchild. Or, as
you're approaching retirement, you're seeking a more conservative investment
strategy geared toward asset preservation. These are valid reasons to reassess
your investment goals and objectives as well as how your assets are allocated
among the various investment classes.
ARE YOUR INVESTMENT ASSETS PROPERLY ALLOCATED?
Maintaining a portfolio that is adequately diversified among the primary asset
classes is an important investment principle. In fact, according to an
independent study of 82 pension funds over a 10-year period, over 91% of an
investment portfolio's return is driven by asset allocation.*
CAN YOU REDUCE YOUR TAXABLE INCOME?
An inheritance, a significant salary increase or relocating to another state can
impact your tax situation. If you need to reduce the amount of your income that
is subject to taxes, consider tax-exempt investments. Investing in municipal
bond funds may be one effective choice because the income you earn on municipal
bond funds is generally exempt from federal income taxes.** Also state-specific
municipal bond funds seek income that is exempt from both federal, state and
local income taxes.
- ---------------
* Source: Financial Analysts Journal, May/June 1991: Determinants Of Portfolio
Performance II: An Update, by Gary Brinson, Brian Singer and Gilbert Beebower.
** Income derived from municipal bond funds may be subject to state and local
taxes and, for certain investors, may be subject to the federal Alternative
Minimum Tax (AMT).
3
<PAGE> 6
ARE YOUR RETIREMENT PLANS ON TRACK?
Many financial experts agree that you will need 80% of your pre-retirement
income to maintain a comfortable lifestyle during your retirement years.
However, the Social Security Administration reports that many Americans save
only one-third of what they will need. While Social Security benefits are an
important component of retirement assets, most of us realize that these benefits
are not likely to be enough. Even combined with your company pension plan, you
may still fall short. Greater emphasis will continue to be placed on personal
investments to complete the retirement picture.
Proper asset allocation, one of the strongest drivers of portfolio return, is
particularly important where retirement investments are concerned. It's
important to determine if your retirement assets are properly allocated to
provide the growth you need without taking on undue risk.
WHAT'S RIGHT FOR YOU?
Before making any changes in your investment strategy, take time to understand
the relationship between investment risk and investment reward. Generally, the
greater the potential for investment reward, such as growth from stock
investments, the greater the risk. Consider whether your timeframe is adequate
to compensate for potential market downturns.
In determining the level of investment risk you are comfortable with, consider
the following:
- - STOCKS ARE LONG-TERM INVESTMENT VEHICLES. Since stocks offer the strongest
potential for growth among the asset classes, stock market investments are
generally suitable for pursuing long-term investment goals. Investors pursuing
short-term investment goals may wish to consider shifting assets toward
investments with greater price stability.
- - BOND INVESTMENTS OFFER GREATER STABILITY THAN STOCKS, BUT ARE NOT WITHOUT
RISK. The types of risk a bond investor will incur include credit risk and
interest-rate risk, both of which can affect a bond's price and yield. In
addition, while bonds generally are not as volatile as stocks, they also do
not offer the growth potential found in stock market investments. A portfolio
that contains only bond investments may hurt your potential to outpace
inflation over time.
- - INTERNATIONAL STOCKS AND BONDS OFFER GREATER DIVERSIFICATION. Although
international investing presents additional risks such as political, currency
and liquidity risk, the diversification benefits can increase the potential
for higher overall portfolio returns and lower portfolio risk.
- - AVOID PLACING ALL OF YOUR EGGS IN ONE BASKET. Spread your investment dollars
among stock, bond and money market investments to help reduce the risk and
impact of principal loss should a particular investment perform poorly.
4
<PAGE> 7
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 your financial
objectives or market conditions 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 NationsBank, N.A. The family was
designed to accommodate a wide variety of investment objectives across the
risk/reward spectrum.
[NATIONS FUND FAMILY 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 1-(800)
982-2271.
- ---------------
* The Nations Fund family also includes Nations Equity Index Fund, which seeks
to match the performance of the S&P 500 before fees and expenses.
5
<PAGE> 8
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND*
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by John Swaim. Mr. Swaim joined NationsBank in 1986 and
is a Vice President and Fixed Income Portfolio Manager. Mr. Swaim has co-managed
the Fund since its inception in 1991. He is a member of the Fixed Income Group
with over seven years of investment experience. Mr. Swaim received a B.S. from
the University of North Texas and an M.B.A. from the University of Texas at
Arlington.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek as high a level of current
income as is consistent with prudent investment risk.
PERFORMANCE REVIEW**
For the one-year period ended November 30, 1995, Nations Short-Intermediate
Government Fund Trust A Shares returned 11.70%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Swaim shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
THE BIG STORY FOR THE FIXED INCOME MARKETPLACE IN 1995 WAS THE INTEREST RATE
ENVIRONMENT. HOW DID THIS IMPACT THE FUND?
Duration, which measures the sensitivity of a bond's price to changes in
interest rates, was key to performance in the fixed income market over the
course of the year. Changes in monetary policy with the Federal Reserve Board
(the Fed) moving from a restrictive to a more accommodating position over the
course of the year helped to rally the market.
Nations Short-Intermediate Government Fund began the fiscal year on a more
bullish note than its peers, most of whom had taken a more defensive stance
heading into 1995. The Fund was positioned to catch the change in the Fed's
posture. The Fund was longer on duration which proved advantageous as interest
rates declined and bond prices began to rise.
WHAT STRATEGIES DID YOU EMPLOY TO CAPTURE INCOME AND TOTAL RETURN?
Most of the value realized by the Fund resulted from timely decisions in
moving in and out of mortgages, managing duration and adding income through
barbelling. Barbelling, the process of building a portfolio of securities from
opposite ends of the maturity spectrum, proved very beneficial from both an
income and a total return perspective.
HOW DOES THE BARBELL STRATEGY WORK?
Over the past few years, most investors have focused on intermediate
securities which provided the most income for the least duration. However,
because of the demand for these securities which pushed yields down and prices
up, the income opportunities in this sector were no longer as good as they had
been. Therefore, our approach was to capture the same level of risk and reward
through investment in very short- and long-term U.S. Treasuries, effectively
creating a portfolio that would provide the same characteristics as intermediate
U.S. Treasuries.
- ---------------
*On August 18, 1995, pursuant to a plan of reorganization, Nations
Short-Intermediate Government Fund acquired the assets and certain liabilities
of Nations Adjustable Rate Government Fund in a tax-free exchange for shares of
Nations Short-Intermediate Government Fund (see Note 9 in the Notes to Financial
Statements).
**The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
6
<PAGE> 9
This strategy provided the portfolio with the less volatile market
sensitivity of the 5-year U.S. Treasury and the advantage of greater total
return from investment in 10-year U.S. Treasuries on the long end of the barbell
structure. This strategy is particularly advantageous in a slowing economy when
long-term rates decline more than short-term rates as the yield curve flattens.
Under these circumstances, the barbell strategy can provide strong potential to
outperform the 5-year U.S. Treasury.
HOW DID THE BARBELL STRATEGY AFFECT INCOME POTENTIAL?
Historically, investment in the 5-year U.S. Treasury has provided greater
income than a strategy that focuses on investment on opposite ends of the
maturity spectrum. Typically, in the barbell structure you had to be willing to
give up some income in pursuit of higher total return potential. This was not
the case over the past year. It actually benefited the Fund to construct a
portfolio of very short-term and longer-term securities in the manner described
above. The barbell strategy provided a double benefit from both an income and
total return perspective.
WHAT ARE THE FUND'S CURRENT PORTFOLIO CHARACTERISTICS?
As the yield curve has flattened, we have gradually moved positions closer
to the 5-year U.S. Treasury on both the short- and long-end of the curve. As of
November 30, 1995, the Fund's average maturity was 4.3 years and the average
duration was 2.7 years. All of the securities owned by the Fund are government
securities. Approximately one-third of the Fund's portfolio is invested in
mortgages.
WHAT IS YOUR OUTLOOK FOR THE FIXED INCOME MARKET IN 1996?
Our outlook for the Fund is quite favorable. Mortgages are beginning to
look favorable at their current prices. We expect mortgage-backed securities
will be beneficial to the Fund in 1996, and we have a good track record of
taking advantage of this. Also, interest rates may be nearing the lower end of
their trading range. If so, the low duration of the Fund should place it in a
good position relative to longer duration funds.
7
<PAGE> 10
NATIONS FUND TRUST
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND
- -----------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
- -----------------------------------------------
<TABLE>
<S> <C>
U.S. Treasury Obligations............... 59.6%
Mortgage-Backed Securities.............. 39.4%
U.S. Government Agency Securities,
Government Guaranteed Bonds,
Asset-Backed Security, Repurchase
Agreement and Other Assets and
Liabilities (Net)....................... 1.0%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------
<S> <C> <C>
YEAR ENDED 7.86% 11.48%
11/30/95
---------------------
INCEPTION
(08/05/91) 6.35% 7.17%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Short-
Intermediate Government Fund
on August 5, 1991
(inception). The Lehman
Brothers 1-5 Year U.S.
Government Index is
comprised of all U.S.
government agency and
Treasury securities with
maturities between 1 and 5
years.
<TABLE>
<CAPTION>
Growth of Lehman Brothers
Investment with Government
Date Distributions Reinvested 1-5 Year U.S. Index
<S> <C> <C>
08/05/91 $ 9,675
08/91 $ 9,882 $10,000
11/91 $10,334 $10,540
02/92 $10,450 $10,714
05/92 $10,713 $10,925
08/92 $11,225 $11,346
11/92 $11,018 $11,332
02/93 $11,543 $11,772
05/93 $11,638 $11,863
08/93 $12,009 $12,152
11/93 $11,993 $12,196
02/94 $12,006 $12,222
05/94 $11,742 $12,045
08/94 $11,855 $12,234
11/94 $11,704 $12,124
02/95 $12,116 $12,544
05/95 $12,540 $13,086
08/95 $12,717 $13,232
11/95 $13,047 $13,574
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
- -------------------------------------
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. U.S. Treasury Notes 49.2%
2. Federal National Mortgage Association
Certificates 19.0
3. Government National Mortgage Association
Certificates 13.9
4. U.S. Treasury Bill 7.5
5. Federal Home Loan Mortgage Corporation
Certificates 6.5
6. Federal Home Loan Bank, 7.360% 03/05/98 3.5
7. Second Attransco Trailer Corporation,
Series A, 8.500% 06/15/02 0.6
8. Third Attransco Trailer Corporation, 8.200%
11/01/97 0.3
9. Student Loan Marketing Association, 5.700%
08/02/99 0.2
10. Collateralized Mortgage Obligation, REMIC,
Series 1992-1, Class C, 6.750% 06/20/17 0.1
</TABLE>
8
<PAGE> 11
NATIONS FUND TRUST
Nations Short-Intermediate Government Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 10.15%* 11.15%
11/30/95
-----------------------
INCEPTION
(06/17/92) 5.12% 5.12%
THROUGH
11/30/95
-----------------------
Not
*Adjusted for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Short-
Intermediate Government Fund
on June 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman Brothers
1-5 Year U.S. Government
Index is comprised of all
U.S. government agency and
Treasury securities with
maturities between 1 and 5
years.
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
with Distributions 1-5 Year
Date Reinvested U.S. Government Index
<S> <C> <C>
06/17/92 $10,000 $10,000
08/92 $10,372 $10,255
11/92 $10,164 $10,242
02/93 $10,632 $10,639
05/93 $10,704 $10,722
08/93 $11,028 $10,983
11/93 $10,997 $11,023
02/94 $10,993 $11,046
05/94 $10,741 $10,886
08/94 $10,837 $11,057
11/94 $10,690 $10,957
02/95 $11,058 $11,337
05/95 $11,436 $11,782
08/95 $11,589 $11,959
11/95 $11,881 $12,268
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 7.02% 11.02%
11/30/95
----------------------
INCEPTION
(06/07/93) 3.09% 4.21%
THROUGH
11/30/95
----------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Short-
Intermediate Government Fund
on June 7, 1993 (inception).
The Lehman Brothers 1-5 Year
U.S. Government Index is
comprised of all U.S.
government agency and
Treasury securities with
maturities between 1 and 5
years.
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
with Distributions 1-5 Year
Date Reinvested U.S. Government Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,289 $10,244
11/93 $10,265 $10,280
02/94 $10,265 $10,302
05/94 $10,028 $10,153
08/94 $10,115 $10,312
11/94 $ 9,976 $10,219
02/95 $10,318 $10,573
05/95 $10,668 $10,988
08/95 $10,806 $11,154
11/95 $10,784 $11,442
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
9
<PAGE> 12
NATIONS FUND TRUST
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------
<S> <C>
YEAR ENDED 11.70%
11/30/95
------------------
INCEPTION
(08/01/91) 7.31%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations
Short-Intermediate
Government Fund on August 1,
1991 (inception). The Lehman
Brothers 1-5 Year U.S.
Government Index is
comprised of all U.S.
government agency and
Treasury securities with
maturities between 1 and 5
years.
FIRST DATA INVESTOR SERVICES
MUTUAL FUND HYPOTHETICAL ANALYSIS
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
With Distributions 1-5 Year U.S.
Date Reinvested Government Index
- ---- -------------------- ----------------
<S> <C> <C>
08/01/91 $10,000 $10,000
08/91 $10,214 $10,164
11/91 $10,681 $10,540
02/92 $10,801 $10,714
05/92 $11,074 $10,925
08/92 $11,608 $11,346
11/92 $11,397 $11,332
02/93 $11,944 $11,772
05/93 $12,047 $11,863
08/93 $12,436 $12,152
11/93 $12,426 $12,196
02/94 $12,444 $12,222
05/94 $12,176 $12,045
08/94 $12,300 $12,234
11/94 $12,149 $12,124
02/95 $12,584 $12,544
05/95 $13,030 $13,036
08/95 $13,220 $13,232
11/95 $13,571 $13,574
</TABLE>
- ----------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
10
<PAGE> 13
NATIONS SHORT-TERM INCOME FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by Gregg Cobb. Mr. Cobb, Vice President, joined
NationsBank in 1993 and has nine years of investment management experience. He
received a B.S. in economics from the University of North Carolina, Chapel Hill.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek as high a level of current
income as is consistent with prudent investment risk.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Short-Term Income
Fund Trust A Shares returned 10.48%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Cobb shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
THE BIG STORY FOR THE FIXED INCOME MARKETPLACE IN 1995 WAS THE DECLINING
INTEREST RATE ENVIRONMENT. HOW DID THIS IMPACT THE FUND?
Nations Short-Term Income Fund is tied very closely to monetary policy.
Therefore, changes in interest rates or the Fed funds rate will have a direct
impact on Fund performance. The price volatility of this Fund is closely related
to the two-year U.S. Treasury bond.
By the end of the reporting period, two-year U.S. Treasury bond yields had
fallen 200 basis points (2%) from their peak in January 1995. Yields dropped
from the 7 1/2% range in early 1995, to the 5 1/2% range toward year-end. Market
anticipation of aggressive Federal Reserve Board easing of interest rates drove
U.S. Treasury yields to their present low levels.
While these conditions have lowered the Fund's yield profile, investors
have been able to capture significant price appreciation. This is because bond
prices rise as yields decline.
WHAT WAS YOUR STRATEGY FOR GENERATING INCOME DURING THIS PERIOD OF DECLINING
INTEREST RATES?
The Fund focused primarily on short-term investment grade corporate bonds
and asset-backed securities throughout the fiscal year. These securities
provided us with higher yields than U.S. Treasuries. We were also able to
enhance total return by capturing price appreciation as rates declined.
The corporate market proved very attractive in a positive earnings
environment. During this period, we saw the best overall corporate credit
profile of the past ten years. Over the past three to five years, many
corporations have been engaged in restructuring and repairing their balance
sheets, so credit quality in the corporate market has been very high. The Fund
was overweighted in both corporate bonds and asset-backed securities throughout
the period. We did not invest in mortgages in an effort to avoid the higher
volatility of the mortgage market during this period. In the market environment
we were dealing with, we wanted to maintain the more stable average volatility
of the two-year U.S. Treasury.
- ---------------
*The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
11
<PAGE> 14
While we look to the two-year U.S. Treasury as our volatility benchmark, we
found it didn't meet our income objective in 1995. As bond prices rallied,
causing yields to decline, short-term U.S. Treasuries were not able to provide
the income level we were seeking. This led us to pursue corporates and
asset-backed securities.
WAS DEMAND ABLE TO KEEP UP WITH SUPPLY OVER THE COURSE OF THE YEAR IN THE
CORPORATE DEBT MARKET?
There was a rather limited supply of short-term corporate debt issued in
1995, yet the demand for short-term corporates was exceedingly high. This supply
and demand imbalance, combined with strong credit quality, resulted in very
favorable performance among investment-grade corporate bonds.
WHAT ARE THE FUND'S CURRENT PORTFOLIO CHARACTERISTICS?
As of November 30, 1995, investment grade corporate bonds accounted for 65%
of the portfolio's assets and proved very beneficial to return. We emphasized
BBB-rated securities which performed extremely well on a total return basis as
well as from an income perspective.
Twenty-percent of assets were allocated to short-term, AAA-rated
asset-backed securities (bonds or notes backed by loan paper or accounts
receivable) which we felt would perform well. Over the past twelve months,
AAA-rated asset-backed securities have provided higher yields than AAA and
AA-rated corporates. The remainder was invested in U.S. government and agency
securities.
The portfolio's average maturity hovers around two years, and the average
credit profile for securities held by the Fund is A1 according to Moody's
Investors Service, Inc., an independent bond rating service.
WHAT IS YOUR OUTLOOK FOR THE FIXED INCOME MARKET IN 1996?
In a nonrecessionary environment, the short-term corporate bond market
should continue to do well and credit quality should remain positive. AAA-rated
asset-backed securities will continue to be emphasized for the yield advantage
they provide. We will be closely following developments in the mortgage market
in 1996. The current mortgage market is reaching valuation levels we haven't
seen over the last two to three years and, consequently, is starting to appear
more attractive. If these levels remain, we may choose to include mortgages for
the potential yield and total return advantages they may provide.
12
<PAGE> 15
NATIONS FUND TRUST
NATIONS SHORT-TERM INCOME FUND
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Corporate Notes....................................... 54.9%
Asset-Backed Securities............................... 18.3%
U.S. Dollar Denominated Foreign Bonds
and Notes............................................. 13.7%
U.S. Treasury Notes................................... 10.3%
U.S. Government Agency Security, Repurchase
Agreement and Other Assets and Liabilities
(Net)................................................. 2.8%
</TABLE>
- -------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------
<S> <C> <C>
YEAR ENDED 8.63% 10.29%
11/30/95
---------------------
INCEPTION
(10/02/92) 4.47% 4.98%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 1.50% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Short-Term
Income Fund on October 2,
1992 (inception). The
Merrill Lynch 1-3 Year
Treasury Index is comprised
of all U.S. government and
corporate bonds with
maturities of 1-3 years. The
Lehman Brothers 1-5 Year
Government/Corporate Index
is comprised of all U.S.
government and corporate
bonds with maturities of 1-5
years.
*The annual reports for the
fiscal years ended November
30, 1993 and November 30,
1994, compared the Fund's
performance to the Lehman
Brothers 1-5 Year
Government/Corporate Bond
Index. Since the Fund is a
short-term bond fund, the
more appropriate benchmark
is the Merrill Lynch 1-3
Year Treasury Index.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES OF 11/30/95*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Date Growth of Merrill Lynch Lehman Brothers
Investment with 1-3 Year 1-5 Year
Distributions Reinvested Treasury Index Government/Corporate Index
<S> <C> <C> <C>
10/02/92 $ 9,850 $ 9,940 $ 9,901
11/92 $ 9,671 $ 9,924 $ 9,869
02/93 $10,039 $10,209 $10,259
05/93 $10,139 $10,274 $10,346
08/93 $10,385 $10,464 $10,606
11/93 $10,448 $10,521 $10,647
02/94 $10,454 $10,560 $10,674
05/94 $10,332 $10,485 $10,517
08/94 $10,461 $10,644 $10,688
11/94 $10,413 $10,596 $10,590
02/95 $10,705 $10,916 $10,962
05/95 $11,056 $11,268 $11,399
08/95 $11,235 $11,443 $11,575
11/95 $11,484 $11,699 $11,878
</TABLE>
- -------------------------------------------------------
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. U.S. Treasury Notes 10.3%
2. General Motors Acceptance Corporation, MTN,
7.500% 03/16/98 3.9
3. Skandia Capital AB, Guaranteed Eurobonds,
6.000% 02/11/98 3.7
4. Equitable-Lord Realty Corporation, Euronote,
10.500% 12/30/97 3.4
5. Olympic Automobile Receivables Trust,
Series 1995-B, Class A2, 7.350% 10/15/01 2.9
6. Discover Card Master Trust,
Series 1995-2, Class A, 6.550% 02/15/03 2.7
7. Advanta National Bank, MTN, 6.090% 11/10/97 2.7
8. Paine Webber Group Inc., Sr. Note, 6.250%
06/15/98 2.7
9. Banponce Financial Corporation, MTN,
5.450% 01/07/97 2.7
10. Potomac Capital Investment Company, MTN,
6.190% 04/28/97 2.4
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
13
<PAGE> 16
NATIONS FUND TRUST
NATIONS SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 10.08%
11/30/95
------
INCEPTION
(10/02/92) 4.76%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Short-Term
Income Fund on October 2,
1992 (inception). The
Merrill Lynch 1-3 Year
Treasury Index is comprised
of all U.S. government and
corporate bonds with
maturities of 1-3 years. The
Lehman Brothers 1-5 Year
Government/Corporate Index
is comprised of all U.S.
government and corporate
bonds with maturities of 1-5
years.
*The annual reports for the
fiscal years ended November
30, 1993 and November 30,
1994, compared the Fund's
performance to the Lehman
Brothers 1-5 Year
Government/Corporate Bond
Index. Since the Fund is a
short-term bond fund, the
more appropriate benchmark
is the Merrill Lynch 1-3
Year Treasury Index.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Date Growth of Merrill Lynch Lehman Brothers
Investment with 1-3 Year 1-5 Year
Distributions Reinvested Treasury Index Government/Corporate Index
<S> <C> <C> <C>
10/02/92 $10,000 $ 9,940 $ 9,901
02/93 $10,186 $10,209 $10,259
05/93 $10,279 $10,274 $10,346
08/93 $10,521 $10,464 $10,606
11/93 $10,577 $10,521 $10,647
02/94 $10,577 $10,560 $10,674
05/94 $10,448 $10,485 $10,517
08/94 $10,575 $10,644 $10,688
11/94 $10,523 $10,596 $10,590
02/95 $10,814 $10,916 $10,962
05/95 $11,159 $11,268 $11,399
08/95 $11,336 $11,443 $11,575
11/95 $11,583 $11,699 $11,878
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------
<S> <C>
YEAR ENDED 10.10%
11/30/95
------
INCEPTION
(06/07/93) 4.99%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Short-Term
Income Fund on June 7, 1993
(inception). The Merrill
Lynch 1-3 Year Treasury
Index is comprised of all
U.S. government and
corporate bonds with
maturities of 1-3 years. The
Lehman Brothers 1-5 Year
Government/Corporate Index
is comprised of all U.S.
government and corporate
bonds with maturities of 1-5
years.
*The annual reports for the
fiscal years ended November
30, 1993 and November 30,
1994, compared the Fund's
performance to the Lehman
Brothers 1-5 Year
Government/Corporate Bond
Index. Since the Fund is a
short-term bond fund, the
more appropriate benchmark
is the Merrill Lynch 1-3
Year Treasury Index.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Date Growth of Merrill Lynch Lehman Brothers
Investment with 1-3 Year 1-5 Year
Distributions Reinvested Treasury Index Government/Corporate Index
<S> <C> <C> <C>
06/07/93 $10,000 $10,000
06/93 $10,099 $10,074 $10,109
08/93 $10,239 $10,185 $10,251
11/93 $10,296 $10,241 $10,291
02/94 $10,300 $10,278 $10,317
05/95 $10,176 $10,206 $10,166
08/94 $10,299 $10,360 $10,331
11/94 $10,248 $10,314 $10,236
02/95 $10,532 $10,625 $10,596
05/95 $10,870 $10,968 $11,018
08/95 $11,043 $11,138 $11,188
11/95 $11,283 $11,387 $11,480
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
14
<PAGE> 17
NATIONS FUND TRUST
NATIONS SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------
<S> <C>
YEAR ENDED 10.48%
11/30/95
------
INCEPTION
(09/30/92) 5.25%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Short-Term Income
Fund on September 30, 1992
(inception). The Merrill
Lynch 1-3 Year Treasury
Index is comprised of all
U.S. government and
corporate bonds with
maturities of 1-3 years. The
Lehman Brothers 1-5 Year
Government/Corporate Index
is comprised of all U.S.
government and corporate
bonds with maturities of 1-5
years.
*The annual reports for the
fiscal years ended November
30, 1993 and November 30,
1994, compared the Fund's
performance to the Lehman
Brothers 1-5 Year
Government/Corporate Bond
Index. Since the Fund is a
short-term bond fund, the
more appropriate benchmark
is the Merrill Lynch 1-3
Year Treasury Index.
<TABLE>
<CAPTION>
Lehman Brothers
Growth of Investment Merrill Lynch 1-5 Year
with Distributions 1-3 Year Government/Corporate
Date Reinvested Treasury Index Index
<S> <C> <C> <C>
09/30/92 $10,000 $10,000.00 $10,000.00
11/92 $ 9,842 $ 9,924.00 $ 9,869.00
02/93 $10,223 $10,208.81 $10,259.00
05/93 $10,329 $10,274.07 $10,346.00
08/93 $10,585 $10,464.26 $10,606.00
11/93 $10,655 $10,521.48 $10,647.00
02/94 $10,668 $10,560.19 $10,673.71
05/94 $10,549 $10,485.27 $10,517.24
08/94 $10,687 $10,644.08 $10,688.27
11/94 $10,643 $10,596.34 $10,590.09
02/95 $10,947 $10,916.08 $10,962.19
05/95 $11,308 $11,268.27 $11,398.90
08/95 $11,498 $11,443.48 $11,575.27
11/95 $11,759 $11/698.66 $11,877.59
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
15
<PAGE> 18
NATIONS DIVERSIFIED INCOME FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by Mark S. Ahnrud. Mr. Ahnrud joined NationsBank in
1985 and is a Vice President and Senior Portfolio Manager. He is a member of the
Fixed Income Group and has over eight years investment experience. He received a
B.S. from Babson College and an M.B.A. from Fuqua School of Business at Duke
University. Mr. Ahnrud is a Chartered Financial Analyst, a member of the
Association for Investment Management and Research and the North Carolina
Society of Financial Analysts.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek as high a level of current
income as is consistent with prudent investment risk.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Diversified Income
Fund Trust A Shares returned 20.11%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Ahnrud shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
HOW DID FINANCIAL MARKET CONDITIONS AFFECT THE FUND'S PERFORMANCE?
Market conditions were very positive over the reporting period. Good
economic fundamentals allowed the corporate bond market to perform well and the
Fund was positioned to take advantage of these conditions. The portfolio's
average duration, which is a measure of the sensitivity of a bond's price to
changes in interest rates, remained longer than its peer group which proved
advantageous as the bond market rallied. In addition, the average credit quality
of the issues held was lower than the Fund's peer group which also provided
advantages in this market.
HOW DID CREDIT QUALITY POSITIVELY IMPACT THE FUND'S PERFORMANCE?**
A key part of our approach to managing the Fund is to seek higher-yielding,
lower-quality, investment-grade bonds that we feel are likely to be reassessed
and receive credit quality upgrades by Moody's Investors Service, Inc. or
Standard & Poor's Corporation, two independent rating services. This enhances
total return by allowing us to lock in the yield premium provided by these
upgraded bonds, which has a positive impact on the Fund's net asset value. Over
the past twelve months, we have seen the ratings increase on a number of the
holdings the Fund owned, including General Motors, Chrysler and News America
Holdings Inc.
WHAT ARE THE FUND'S CURRENT PORTFOLIO CHARACTERISTICS?
The Fund has maintained an average effective maturity and duration longer
than its peer group. The average maturity as of November 30, 1995 was 11.4
years. The average credit rating for the Fund's portfolio holdings is Aa3
(Moody's) or AA- (the S&P equivalent). Due to the weakness we've seen in the
economy over the past two months, we are currently underweighted in high-yield
(non-investment grade) bonds which account for approximately 15% of the
portfolio. While this figure is significantly lower than in the past, the Fund's
investment grade corporate bond weighting is also underweighted at 43%, down
from 65% at this time last year.
- ---------------
*The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
**Portfolio holdings are subject to change and may not be representative of
current holdings.
16
<PAGE> 19
WHERE DID YOU FIND THE STRONGEST PERFORMANCE WITHIN THE FIXED INCOME MARKETPLACE
OVER THE COURSE OF THE FUND'S FISCAL YEAR?
The 30-year U.S. Treasury bond, which was up an impressive 32% over the
course of the year, provided the strongest performance. The yield differential
between corporate debt and U.S. Treasuries can be attractive at certain times,
but we believe it is too narrow now and have underweighted the corporate sector.
For example, currently the differential between A-rated corporate bond yields
and U.S. Treasury yields is 50 basis points. The long-term average for this
relationship is 75 basis points.
In the corporate arena, the Forest and Paper Products sectors provided
value. They were expected to do well at this point in the economic cycle and did
not disappoint us.
WHICH SECTOR PROVIDED THE WEAKEST PERFORMANCE?
Aside from cash, an area that represented a weak spot over the course of
the year was the Utility sector, which we underweighted. But cash will always
provide the weakest performance in a strong market because it lacks duration.
That is why we always strive to remain fully invested.
GOING FORWARD, WHERE DO YOU EXPECT TO FIND THE BEST VALUES?
We expect the economy to continue to weaken which will contribute to
increased credit risk within the corporate marketplace. Therefore, we're adding
to strong current positions while seeking attractive shorter-term corporate
securities. Because the spread between corporates and U.S. Treasuries has
reached historic lows, the Fund will continue to be overweighted in U.S.
Treasuries, adding to positions with maturities of 10 years or more.
WHAT IS YOUR OUTLOOK FOR THE FIXED INCOME MARKET IN 1996?
We believe a satisfactory budget accord will be reached and the resulting
fiscal restraint will be welcomed by the bond market. Fiscal restraint will have
to be offset by a lowering of the Federal Funds rate by the Federal Reserve
Board. This combination should allow for a continuation of the positive market
results seen in 1995. As we head into 1996, we believe that the Fund is
well-positioned to take full advantage of these conditions.
17
<PAGE> 20
NATIONS FUND TRUST
NATIONS DIVERSIFIED INCOME FUND
- --------------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
- --------------------------------------------------
<TABLE>
<S> <C>
U.S. Treasury Obligations................. 50.6%
Corporate Bonds and Notes................. 39.8%
Mortgage-Backed Security, U.S. Dollar
Denominated Foreign Bonds and Notes,
Repurchase Agreement and Other
Assets and Liabilities (Net).............. 9.6%
</TABLE>
- -------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------
<S> <C> <C>
YEAR ENDED 14.13% 19.82%
11/30/95
---------------------
INCEPTION
(11/25/92) 8.78% 10.55%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.75% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations
Diversified Income Fund on
November 25, 1992
(inception). The Lehman
Brothers
Government/Corporate Bond
Index is comprised of U.S.
government, Treasury and
agency securities, corporate
and yankee bonds.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth of Lehman Brothers
Investment with Government/Corporate
Date Distributions Reinvested Bond Index
<S> <C> <C>
11/25/92 $ 9,525 $10,000
02/93 $10,171 $10,608
05/93 $10,404 $10,720
08/93 $11,043 $11,287
11/93 $11,119 $11,244
02/94 $11,190 $11,214
05/94 $10,695 $10,829
08/94 $10,893 $11,024
11/94 $10,757 $10,826
02/95 $11,354 $11,364
05/95 $12,146 $12,088
08/95 $12,385 $12,791
11/95 $12,888 $12,805
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
- -------------------------------------
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. U.S. Treasury Notes 27.7%
2. U.S. Treasury Bonds 22.9
3. Federal National Mortgage Association
Certificates 2.6
4. Hydro-Quebec, Deb., Series H, 9.400% 02/01/21 1.4
5. Security Pacific Corporation, Sub. Note,
11.000% 03/01/01 1.4
6. News America Holdings Inc., Deb.,
10.125% 10/15/12 1.4
7. Paine Webber Group, Inc., Sr. Note, Shelf 9,
8.875% 03/15/05 1.3
8. Warren (SD) Company, Sr. Sub Note,
12.000% 12/15/04 1.3
9. TIG Holdings, Inc., Note, 8.125% 04/15/05 1.3
10. Jones Intercable, Inc., Sr. Note, 9.625%
03/15/02 1.2
</TABLE>
18
<PAGE> 21
NATIONS FUND TRUST
NATIONS DIVERSIFIED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------
<S> <C> <C>
YEAR ENDED 18.22%* 19.22%
11/30/95
----------------------
INCEPTION
(11/09/92) 10.19% 10.19%
THROUGH
11/30/95
----------------------
*Adjusted Not
for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations
Diversified Income Fund on
November 9, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman Brothers
Government/Corporate Bond
Index is comprised of U.S.
government, Treasury and
agency securities, corporate
and yankee bonds.
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
With Distributions Government/Corporate
Date Reinvested Bond Index
<S> <C> <C>
11/09/92 $10,000 $10,000
02/93 $10,777 $10,600
05/93 $11,007 $10,712
08/93 $11,666 $11,278
11/93 $11,729 $11,295
02/94 $11,786 $11,205
05/94 $11,250 $10,820
08/94 $11,444 $11,015
11/94 $11,286 $10,817
02/95 $11,898 $11,355
05/95 $12,713 $12,078
08/95 $12,946 $12,281
11/95 $13,456 $12,795
</TABLE>
- -------------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------
<S> <C> <C>
YEAR ENDED 14.22% 19.22%
11/30/95
----------------------
INCEPTION
(06/07/93) 6.95% 8.03%
THROUGH
11/30/95
----------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations
Diversified Income Fund on
June 7, 1993 (inception).
The Lehman Brothers
Government/Corporate Bond
Index is comprised of U.S.
government, Treasury and
agency securities, corporate
and yankee bonds.
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
With Distributions Government/Corporate
Date Reinvested Bond Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,502 $10,579
11/93 $10,558 $10,489
02/94 $10,610 $10,460
05/94 $10,128 $10,101
08/94 $10,302 $10,283
11/94 $10,160 $10,098
02/95 $10,711 $10,600
05/95 $11,444 $11,274
08/95 $11,654 $11,465
11/95 $11,813 $11,945
</TABLE>
- -------------------
Assumes the deduction of the maximum applicable contingent deferred sales
charge and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
19
<PAGE> 22
NATIONS FUND TRUST
NATIONS DIVERSIFIED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- ----------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------
<S> <C>
YEAR ENDED 20.11%
11/30/95
------------------
INCEPTION
(10/30/92) 10.78%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Diversified
Income Fund on October 30,
1992 (inception). The Lehman
Brothers
Government/Corporate Bond
Index is comprised of U.S.
government, Treasury and
agency securities, corporate
and yankee bonds.
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
With Distributions Government/Corporate
Date Reinvested Bond Index
- ---- -------------------- --------------------
<S> <C> <C>
10/30/92 $10,000 $10,000
11/92 $10,032 $ 9,992
02/93 $10,762 $10,600
05/93 $11,012 $10,712
08/93 $11,692 $11,278
11/93 $11,777 $11,235
02/94 $11,857 $11,205
05/94 $11,339 $10,820
08/94 $11,556 $11,015
11/94 $11,418 $10,817
02/95 $12,060 $11,355
05/95 $12,909 $12,076
08/95 $13,171 $12,281
11/95 $13,715 $12,795
</TABLE>
- -------------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
20
<PAGE> 23
NATIONS STRATEGIC FIXED INCOME FUND*
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by Mark S. Ahnrud. Mr. Ahnrud joined NationsBank in
1985 and is a Vice President and Senior Portfolio Manager. He is a member of the
Fixed Income Group and has over eight years investment experience. He received a
B.S. from Babson College and an M.B.A. from Fuqua School of Business at Duke
University. Mr. Ahnrud is a Chartered Financial Analyst, a member of the
Association for Investment Management and Research and the North Carolina
Society of Financial Analysts.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek to maximize total investment
return through the active management of fixed income securities.
PERFORMANCE REVIEW**
For the one-year period ended November 30, 1995, Nations Strategic Fixed
Income Fund Trust A Shares returned 16.45%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Ahnrud shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
HOW DID FINANCIAL MARKET CONDITIONS AFFECT THE FUND'S PERFORMANCE?
The past twelve months have been very favorable for bonds. Interest rates
declined over 150 basis points (1.5%) approaching the lows of October 1993.
Typically, when interest rates decline, bond prices rise and holders of bond
funds are rewarded. This was the case over the past year. Reasons for the
decline in interest rates include moderate economic growth, benign inflation,
favorable inflation expectations going forward and anticipation of a budget
compromise.
GIVEN THIS ENVIRONMENT, HOW WAS THE FUND POSITIONED?
The Fund maintained an average maturity of 8.2 years compared to 8.3 years
for the Lehman Brothers Aggregate Bond Index (the Index)***. The Fund
underweighted mortgage securities, 24.4% versus 28% for the Index, because
mortgage securities historically tend to underperform during bond market
rallies. This underweighting proved beneficial to the Fund as the market
rallied.
Approximately 19% of the portfolio was invested in corporate and
asset-backed securities, providing some incremental income. Given that there was
not a great deal of difference in yield between long and short maturities, the
Fund concentrated on shorter maturities. To maintain duration and benefit from
falling interest rates, over half the portfolio (52.2%) was invested in U.S.
Treasury securities.
DOES THE FUND OWN ANY DERIVATIVE INSTRUMENTS?
No. The Fund does not own any derivative-type structures or have any
significant holdings (0.1% of the portfolio) of collateralized mortgage
obligations (CMOs).
- ---------------
*On September 22, 1995, pursuant to a plan of reorganization, Nations
Strategic Fixed Income Fund acquired the assets and certain liabilities of
Nations Managed Bond Fund in a tax-free exchange for shares of Nations Strategic
Fixed Income Fund (see Note 9 in the Notes to Financial Statements).
**The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
***Source: Lehman Brothers. The Lehman Brothers Aggregate Bond Index is
comprised of the Lehman Government/Corporate Index and the Mortgage-Backed
Securities Index which include U.S. Treasury issues, agency issues, corporate
bond issues and mortgage-backed securities.
21
<PAGE> 24
WHERE DID YOU FIND THE STRONGEST PERFORMANCE WITHIN THE FIXED INCOME MARKETPLACE
OVER THE COURSE OF THE FUND'S FISCAL YEAR?
The Fund overweighted long-term U.S. Treasuries relative to the Lehman
Brothers Aggregate Bond Index. The 30-year U.S. Treasury, the market benchmark,
was up an impressive 32% over the course of the year and the Fund fully
participated in that performance.
WHAT SECTOR PROVIDED THE WEAKEST PERFORMANCE?
Cash provided the weakest performance. That is why we want the Fund to
remain fully invested in a strong market. Longer term U.S. Treasuries, which
performed well during the period, provided an opportunity to invest the strong
cash inflows of investor assets. Mortgages were the weakest performing sector
among longer maturity securities, therefore, the Fund's underweighted exposure
to this sector benefited performance.
GOING FORWARD, WHERE DO YOU EXPECT TO FIND THE BEST VALUES?
We believe the economy will continue to weaken which should contribute to
increased credit risk within the corporate marketplace. Because the yield
differential between corporate and U.S. Treasuries has reached historic lows,
the Fund will continue to underemphasize long maturity corporate bonds.
WHAT IS YOUR OUTLOOK FOR 1996?
We believe that a satisfactory budget accord will be reached and the
resulting fiscal restraint will be welcomed by the bond market. Fiscal restraint
will have to be offset by a lowering of the Federal Funds rate by the Federal
Reserve Board. This combination should allow for a continuation of the positive
market results seen in 1995. As we head into 1996, we believe the Fund is
well-positioned to take full advantage of these conditions.
22
<PAGE> 25
NATIONS FUND TRUST
NATIONS STRATEGIC FIXED INCOME FUND
- ----------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
- ----------------------------------------------
<TABLE>
<S> <C>
U.S. Treasury Obligations ............ 52.2%
Mortgage-Backed Securities ........... 24.4%
Corporate Notes ...................... 10.7%
Asset-Backed Securities............... 7.8%
U.S. Dollar Denominated
Foreign Bonds and Notes,
Repurchase Agreement and
Other Assets and
Liabilities (Net) .................. 4.9%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------
<S> <C> <C>
YEAR ENDED 12.44% 16.22%
11/30/95
---------------------
INCEPTION
(11/19/92) 6.34% 7.50%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Strategic
Fixed Income Fund on
November 19, 1992
(inception). The Lehman
Brothers Aggregate Bond
Index is comprised of the
Lehman Government/Corporate
Index and the
Mortgage-Backed Securities
Index which include U.S.
Treasury issues, agency
issues, corporate bond
issues and mortgage-backed
securities.
<TABLE>
<CAPTION>
Growth of
Investment with Lehman Brothers
Distributions Aggregate
Date Reinvested Bond Index
- ---- --------------- ---------------
<S> <C> <C>
11/19/92 $ 9,675 $10,000
02/93 $10,210 $10,533
05/93 $10,319 $10,886
08/93 $10,814 $11,111
11/93 $10,771 $11,088
02/94 $10,763 $11,102
05/94 $10,415 $10,740
08/94 $10,587 $10,943
11/94 $10,366 $10,748
02/95 $10,858 $11,299
05/95 $11,479 $11,973
08/95 $11,622 $12,180
11/95 $12,047 $12,645
</TABLE>
- --------------
Assumes the deduction of the maximum sales charge of 3.25% and the reinvestment
of all distributions.
- -------------------------------------
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. U.S. Treasury Bonds 30.0%
2. U.S. Treasury Notes 22.2
3. Federal National Mortgage Association
Certificates 11.9
4. Government National Mortgage Association
Certificates 11.1
5. AT&T Universal Card, Master Trust, Series
95-2A, 5.950% 12/17/02 2.0
6. Banc One Auto Trust, Series 1995-A, Class
A-2, 6.650% 05/15/97 1.8
7. Chase Manhattan, Grantor Trust, Series 95-B,
Class A, 5.900% 11/15/01 1.4
8. Federal Home Loan Mortgage Corporation
Certificates 1.4
9. US West Capital Funding, MTN, 6.200% 11/30/00 1.3
10. TKR Cable 1, Inc., Sr. Deb., 10.500% 10/30/07 1.1
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
23
<PAGE> 26
NATIONS FUND TRUST
NATIONS STRATEGIC FIXED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------
<S> <C> <C>
YEAR ENDED 14.87%* 15.87%
11/30/95
----------------------
INCEPTION
(11/16/92) 7.12% 7.12%
THROUGH
11/30/95
----------------------
Not
*Adjusted for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Strategic
Fixed Income Fund on
November 16, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman Brothers
Aggregate Bond Index is
comprised of the Lehman
Government/Corporate Index
and the Mortgage-Backed
Securities Index which
include U.S. Treasury
issues, agency issues,
corporate bond issues and
mortgage-backed securities.
<TABLE>
<CAPTION>
Growth of
Investment with Lehman Brothers
Distributions Aggregate
Date Reinvested Bond Index
- ---- --------------- ---------------
<S> <C> <C>
11/16/92 $10,000 $10,000
11/92 $ 9,978 $10,000
02/93 $10,556 $10,533
05/93 $10,661 $10,685
08/93 $11,156 $11,111
11/93 $11,096 $11,088
02/94 $11,071 $11,102
05/94 $10,703 $10,740
08/94 $10,871 $10,943
11/94 $10,636 $10,748
02/95 $11,133 $11,299
05/95 $11,761 $11,973
08/95 $11,899 $12,180
11/95 $12,324 $12,645
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------
<S> <C> <C>
YEAR ENDED 10.70% 15.70%
11/30/95
----------------------
INCEPTION
(06/07/93) 4.64% 5.74%
THROUGH
11/30/95
----------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Strategic
Fixed Income Fund on June 7,
1993 (inception). The Lehman
Brothers Aggregate Bond
Index is comprised of the
Lehman Government/Corporate
Index and the Mortgage-
Backed Securities Index
which include U.S. Treasury
issues, agency issues,
corporate bond issues and
mortgage-backed securities.
<TABLE>
<CAPTION>
Growth of
Investment with Lehman Brothers
Distributions Aggregate
Date Reinvested Bond Index
- ---- --------------- ---------------
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,417 $10,418
11/93 $10,364 $10,397
02/94 $10,343 $10,410
05/94 $ 9,997 $10,071
08/94 $10,151 $10,261
11/94 $ 9,928 $10,079
02/95 $10,388 $10,595
05/95 $10,969 $11,227
08/95 $11,095 $11,421
11/95 $11,191 $11,857
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
24
<PAGE> 27
NATIONS FUND TRUST
NATIONS STRATEGIC FIXED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- --------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------
<S> <C>
YEAR ENDED 16.45%
11/30/95
------
INCEPTION
(10/30/92) 7.68%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Strategic Fixed
Income Fund on October 30,
1992 (inception). The Lehman
Brothers Aggregate Bond
Index is comprised of the
Lehman Government/Corporate
Index and the
Mortgage-Backed Securities
Index which include U.S.
Treasury issues, agency
issues, corporate bond
issues and mortgage-backed
securities.
<TABLE>
<CAPTION>
Growth of Lehman Brothers
Investment with Aggregate
Date Distributions Reinvested Bond Index
<S> <C> <C>
10/30/92 $10,000 $10,000
11/92 $ 9,989 $10,004
02/93 $10,587 $10,537
05/93 $10,714 $10,669
08/93 $11,232 $11,115
11/93 $11,193 $11,092
02/94 $11,189 $11,108
05/94 $10,832 $10,744
08/94 $11,017 $10,947
11/94 $10,792 $10,752
02/95 $11,310 $11,304
05/95 $11,962 $11,976
08/95 $12,118 $12,184
11/95 $12,567 $12,649
</TABLE>
- -------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
25
<PAGE> 28
NATIONS FUND TRUST
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
ASSET-BACKED SECURITY -- 0.1% (Cost $691,627)
<S> <C> <C>
$ 699,188 Collateralized Mortgage Obligation,
REMIC, Series 1992-1, Class C,
6.750% 06/20/17.................. $ 697,440
-----------
GOVERNMENT GUARANTEED BONDS -- 1.0%
664,139 Drexel Burnham Lambert, Series S-2,
9.000% 08/01/18.................. 679,913
3,111,000 Second Attransco Trailer
Corporation, Series A,
8.500% 06/15/02.................. 3,188,775
1,374,000 Third Attransco Trailer
Corporation,
8.200% 11/01/97.................. 1,422,543
------------
TOTAL GOVERNMENT GUARANTEED BONDS
(Cost $5,235,410)................ 5,291,231
-----------
MORTGAGE-BACKED SECURITIES -- 39.4%
FEDERAL HOME LOAN MORTGAGE
CORPORATION (FHLMC)
CERTIFICATES -- 6.5%
122,360 6.500% 09/01/03.................. 120,954
770,435 8.500% 04/01/08.................. 799,527
8,344,655 8.500% 08/01/09.................. 8,683,615
3,824,189 8.500% 05/01/17.................. 3,973,103
1,868,449 5.273% 11/01/24+++............... 1,921,588
11,000,000 7.500% 11/15/25, TBA++........... 11,195,910
Gold 5 Year Balloon,
711,614 8.500% 01/01/96................ 717,840
Multiclass:
785,470 Series 1202, Class C,
6.000% 12/15/01................ 783,749
REMIC:
2,000,000 Series 77, Class F,
8.500% 06/15/17................ 2,014,360
2,298,206 Series 105, Class D,
6.000% 01/15/19................ 2,285,980
912,538 Series 1188, Class E,
7.000% 12/15/14................ 910,823
------------
33,407,449
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA)
CERTIFICATES -- 19.0%
1,700,000 8.150% 05/11/98................. 1,799,076
15,000,000 7.900% 04/10/02................. 15,438,300
8,000,000 7.550% 06/10/04................. 8,370,000
5,445,434 8.000% 06/01/08................. 5,661,564
13,876,523 8.500% 11/01/09................. 14,448,930
6,170,462 9.000% 04/01/16................. 6,532,915
3,149,200 7.807% 06/01/18................. 3,243,676
2,658,299 7.404% 11/01/18................. 2,721,008
2,214,418 7.768% 12/01/20+++.............. 2,285,700
1,626,432 7.860% 12/01/21................. 1,670,394
15,000,000 7.500% 02/01/24, TBA++.......... 15,257,700
10,000,000 7.000% 01/25/25, TBA++.......... 9,993,700
REMIC:
236,971 Series 1989-81D,
9.000% 06/25/16................ 238,080
11,000,000 Series 1992-171PD,
6.300% 04/25/17................ 10,972,500
------------
98,633,543
------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) CERTIFICATES -- 13.9%
$ 5,591,838 8.500% 02/15/05 - 08/15/08
(27 Pools)................... $ 5,879,015
3,608,652 9.000% 09/15/09.................. 3,834,193
9,482,486 8.000% 05/15/22.................. 9,827,838
4,080,612 6.000% 08/20/25.................. 4,118,888
24,000,000 8.000% 05/11/24, TBA++........... 24,832,320
23,000,000 7.500% 10/15/24, TBA++........... 23,474,260
------------
71,966,514
------------
TOTAL MORTGAGE-
BACKED SECURITIES
(Cost $201,537,526).............. 204,007,506
-----------
U.S. GOVERNMENT AGENCY SECURITIES -- 3.8%
18,300,000 Federal Home Loan Bank,
7.360% 03/05/98.................. 18,379,971
Student Loan Marketing Association:
500,000 4.760% 06/01/98+++............... 487,075
1,000,000 5.700% 08/02/99+++............... 987,220
------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES
(Cost $19,915,523)............... 19,854,266
-----------
U.S. TREASURY OBLIGATIONS -- 59.6%
U.S. TREASURY BILL -- 7.5%
40,000,000 2.684%+ 05/30/96................. 38,938,133
------------
U.S. TREASURY BOND -- 2.9%
11,000,000 10.375% 11/15/12................. 15,004,660
------------
U.S. TREASURY NOTES -- 49.2%
1,000,000 5.125% 03/31/96.................. 998,590
74,000 7.250% 11/15/96.................. 75,225
59,000,000 7.500% 01/31/97.................. 60,364,080
59,000,000 8.500% 04/15/97.................. 61,378,290
45,000,000 8.750% 10/15/97.................. 47,650,950
2,000,000 4.750% 09/30/98.................. 1,965,000
12,000,000 8.500% 02/15/00.................. 13,308,720
20,000,000 5.750% 10/31/00.................. 20,168,800
12,000,000 7.500% 02/15/05.................. 13,440,000
34,000,000 6.500% 08/15/05.................. 35,779,560
------------
255,129,215
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $306,628,821).............. 309,072,008
-----------
TOTAL SECURITIES
(Cost $534,008,907).............. 538,922,451
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 29
NATIONS FUND TRUST
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
REPURCHASE AGREEMENT -- 11.5% (Cost $59,258,000)
<S> <C> <C>
$59,258,000 Agreement with CS First
Boston Corporation,
5.830% dated 11/30/95,
to be repurchased at
$59,267,597 on 12/01/95,
collateralized by: $60,739,583
U.S. Treasury Bonds,
11.250% - 12.000% due
05/15/05 - 02/15/15.............. $ 59,258,000
-----------
TOTAL INVESTMENTS
(Cost $593,266,907*).................. 115.4% 598,180,451
OTHER ASSETS AND
LIABILITIES (NET)..................... (15.4) (80,032,541)
----- ------------
NET ASSETS.............................. 100.0% $518,147,910
---- -----------
</TABLE>
- ---------------
<TABLE>
<S> <C>
* Aggregate cost for Federal tax purposes.
+ Rate represents annualized yield at date of purchase.
++ Security purchased on a when-issued or delayed delivery
basis (Note 1).
+++ Variable rate security. The interest rate shown reflects
the rate in effect at November 30, 1995.
</TABLE>
ABBREVIATIONS:
<TABLE>
<S> <C>
BALLOON 5 and 7 year mortgages with larger dollar
amounts of payments falling due in the later
years of the
obligation
GOLD Payments are on accelerated 45 day payment
cycle instead of regular 75 day cycle
REMIC Real Estate Mortgage Investment Conduit
TBA To Be Announced
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS FUND TRUST
NATIONS SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
ASSET-BACKED SECURITIES -- 18.3%
<S> <C> <C>
$ 5,000,000 Discover Card Master Trust, Series
1995-2, Class A, 6.550%
02/15/03......................... $ 5,123,400
2,545,772 EQCC Home Equity Loan Trust, Series
1994-2, Class A1, 6.350%
06/15/14......................... 2,550,943
3,557,731 First Bank Automobile Receivables
Grantor Trust, Series 1995-A,
8.000% 01/15/00.................. 3,637,780
2,000,000 Ford Credit Auto Lease Trust,
Series 1995-1, Class A2, 6.350%
10/15/98......................... 2,010,620
3,000,000 Ford Credit Auto Loan Master Trust,
Series 1992-2-A,
7.375% 04/15/99.................. 3,063,750
991 Home Savings & Loan Association of
California, IO Strip,
8.670% 02/25/08+................. 1,011
5,270,820 Olympic Automobile Receivables
Trust, Series 1995-B, Class A2,
7.350% 10/15/01.................. 5,384,472
2,250,000 Prime Credit Card Master Trust,
Series 1, Class B1,
7.550% 02/15/01.................. 2,321,708
1,932,467 SCFC Recreation Vehicle Loan,
Series 1991-1-A,
7.250% 09/15/06.................. 1,951,173
4,000,000 Sears Credit Account Master Trust
II, Series 1994-2, Class A,
7.250% 02/15/98.................. 4,100,000
4,000,000 Standard Credit Card Master Trust,
Series 1990-6, Class A, 9.375%
09/10/98......................... 4,206,240
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $33,791,130)............... 34,351,097
-----------
CORPORATE NOTES -- 54.9%
BANKING -- 6.5%
5,000,000 Advanta National Bank, MTN, 6.090%
11/10/97......................... 5,014,100
4,000,000 Capital One Bank,
8.125% 02/27/98.................. 4,166,560
3,000,000 Citicorp,
8.750% 11/01/96.................. 3,071,640
------------
12,252,300
------------
BEVERAGES -- 2.0%
4,000,000 Dr. Pepper/Seven-Up Companies, Sr.
Sub. Note,
Zero Coupon 11/01/97++........... 3,725,560
------------
BROKERAGE -- 4.9%
4,000,000 Morgan Stanley Group Inc., MTN,
7.790% 02/03/97.................. 4,088,000
5,000,000 Paine Webber Group Inc., Sr. Note,
6.250% 06/15/98.................. 4,992,300
------------
9,080,300
------------
CAPTIVE FINANCE -- 13.0%
4,000,000 AT&T Capital Corporation, MTN,
7.720% 01/31/97.................. 4,086,360
Ford Motor Credit Corporation, MTN:
1,000,000 9.200% 05/07/97.................. 1,046,980
4,250,000 6.050% 03/31/98.................. 4,271,760
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
CORPORATE NOTES -- (CONTINUED)
<S> <C> <C>
CAPTIVE FINANCE -- (CONTINUED)
$ 7,000,000 General Motors Acceptance
Corporation, MTN,
7.500% 03/16/98.................. $ 7,242,480
4,500,000 Potomac Capital Investment
Company, MTN,
6.190% 04/28/97**................ 4,512,870
3,000,000 Textron Financial Corporation, MTN,
7.380% 08/30/98**................ 3,092,400
------------
24,252,850
------------
ENERGY -- 1.3%
2,300,000 Occidental Petroleum Corporation,
Sr. Deb.,
11.750% 03/15/11................. 2,442,094
------------
FINANCIAL -- 11.9%
3,000,000 Chrysler Financial Corporation,
MTN,
5.990% 11/17/97.................. 3,006,960
3,150,000 Goldman Sachs Group, MTN,
9.140% 12/01/97**................ 3,343,190
2,500,000 Heller Financial, Inc., Notes,
9.375% 03/15/98.................. 2,682,050
4,050,000 Lehman Brothers, Inc., Sr. Sub.
Notes,
7.000% 05/15/97.................. 4,093,213
3,000,000 NYNEX, MTN,
6.720% 06/15/98**................ 3,059,010
4,000,000 Salomon Inc., MTN,
8.660% 02/14/97.................. 4,105,880
2,000,000 Smith Barney Shearson, Notes,
5.625% 11/15/98.................. 1,986,560
------------
22,276,863
------------
INDEPENDENT FINANCE -- 8.0%
3,000,000 CIT Group Holdings, Inc., MTN,
7.625% 12/05/96.................. 3,051,840
2,750,000 Greyhound Financial Corporation,
8.250% 03/11/97.................. 2,823,177
4,000,000 Household Finance Corporation, Sr.
Note,
7.625% 12/15/96.................. 4,070,240
North American Mortgage
Company, MTN:
2,500,000 5.400% 11/12/96.................. 2,487,100
2,500,000 5.800% 11/02/98.................. 2,469,500
------------
14,901,857
------------
INDUSTRIAL -- 4.3%
3,500,000 Comdisco, Inc., MTN,
7.730% 02/18/97.................. 3,566,990
1,500,000 Tele-Communications Inc., MTN,
6.430% 03/09/98.................. 1,507,530
3,000,000 Whitman Corporation, MTN,
8.120% 01/27/97.................. 3,067,470
------------
8,141,990
------------
RETAIL -- 2.9%
Sears, Roebuck & Company, MTN:
4,000,000 7.690% 02/27/98.................. 4,150,280
1,130,000 9.230% 08/06/98.................. 1,221,801
------------
5,372,081
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
NATIONS FUND TRUST
NATIONS SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
CORPORATE NOTES -- (CONTINUED)
<S> <C> <C>
TELECOMMUNICATIONS -- 0.1%
$ 250,000 Bell Atlantic Tricon Corporation,
8.000% 03/03/97**................ $ 256,772
------------
TOTAL CORPORATE NOTES
(Cost $101,263,647).............. 102,702,667
-----------
FOREIGN BONDS AND NOTES -- 13.7%
Banponce Financial Corporation,
MTN:
5,000,000 5.450% 01/07/97.................. 4,973,400
2,000,000 8.320% 01/30/97.................. 2,051,920
3,000,000 Boral Limited, Note,
7.340% 06/20/97.................. 3,070,050
6,000,000 Equitable-Lord Realty Corporation,
Euronote,
10.500% 12/30/97................. 6,398,640
1,950,000 Fletcher Challenge, Deb.,
9.800% 06/15/98.................. 2,115,711
7,000,000 Skandia Capital AB, Guaranteed
Eurobonds,
6.000% 02/11/98.................. 6,984,460
------------
TOTAL FOREIGN BONDS
AND NOTES
(Cost $25,149,092)............... 25,594,181
-----------
U.S. GOVERNMENT AGENCY SECURITY -- 1.1% (Cost $2,005,549)
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA)
CERTIFICATE -- 1.1%
2,000,000 8.632% 01/01/96.................. 2,004,580
-----------
U.S. TREASURY NOTES -- 10.3%
2,500,000 7.250% 02/15/98.................. 2,593,350
10,250,000 9.250% 08/15/98.................. 11,223,750
5,350,000 6.250% 08/31/00.................. 5,500,442
------------
TOTAL U.S. TREASURY NOTES
(Cost $19,123,499)............... 19,317,542
-----------
TOTAL SECURITIES
(Cost $181,332,917).............. 183,970,067
-----------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.2% (Cost $414,000)
<S> <C> <C>
$ 414,000 Agreement with CS First
Boston Corporation,
5.830% dated 11/30/95,
to be repurchased at
$414,067 on 12/01/95,
collateralized by: $424,351
U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15......................... $ 414,000
-----------
TOTAL INVESTMENTS
(Cost $181,746,917*)................. 98.5% 184,384,067
OTHER ASSETS AND
LIABILITIES (NET).................... 1.5 2,805,466
---- ------------
NET ASSETS............................. 100.0% $187,189,533
---- -----------
</TABLE>
- ---------------
<TABLE>
<S> <C>
* Aggregate cost for Federal tax purposes was $181,748,928.
** Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to
qualified institutional buyers.
+ Variable rate security. The interest rate shown reflects
the rate in effect at November 30, 1995.
++ Step coupon bond. Effective yield is 9.11% at acquisition
date.
</TABLE>
ABBREVIATIONS:
<TABLE>
<C> <C>
IO Interest Only
MTN Medium Term Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 32
NATIONS FUND TRUST
NATIONS DIVERSIFIED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 39.8%
<S> <C> <C>
BANKING AND FINANCE -- 7.9%
$ 2,000,000 General Motors Acceptance
Corporation, MTN,
7.500% 07/24/00.................. $ 2,109,680
1,476,815 G.P.A. Leasing USA, Series BN-5,
9.125% 12/02/96**................ 1,445,064
1,500,000 Leucadia National Corporation,
Sr. Sub. Note,
8.250% 06/15/05.................. 1,573,125
2,000,000 Paine Webber Group, Inc.,
Sr. Note, Shelf 9,
8.875% 03/15/05.................. 2,250,940
2,000,000 Security Pacific Corporation, Sub.
Note, 11.000% 03/01/01........... 2,424,700
1,500,000 SunAmerica Inc., Sr. Note,
9.000% 01/15/99.................. 1,611,840
2,000,000 TIG Holdings, Inc., Note,
8.125% 04/15/05.................. 2,166,640
------------
13,581,989
------------
COMPUTER -- 0.8%
1,500,000 Unisys Corporation, Sr. Note,
10.625% 10/01/99................. 1,335,000
------------
ENERGY -- 4.3%
2,000,000 Clark Oil & Refining Corporation,
Sr. Note,
9.500% 09/15/04.................. 2,040,000
1,500,000 Coastal Corporation, Sr. Deb.,
11.750% 06/15/06................. 1,612,650
2,000,000 Cogentrix Energy, Inc., Sr. Note,
8.100% 03/15/04.................. 2,071,420
1,500,000 USX-Marathon Group, Deb.,
9.625% 08/15/03.................. 1,734,795
------------
7,458,865
------------
ENTERTAINMENT -- 1.0%
1,500,000 Time Warner Inc., Deb.,
9.150% 02/01/23.................. 1,665,135
------------
FOOD -- 1.5%
1,500,000 Borden, Inc., Sinking Fund Deb.,
9.250% 06/15/19.................. 1,564,620
1,000,000 Chiquita Brands International Inc.,
Sub. Note,
11.500% 06/01/01................. 1,050,000
------------
2,614,620
------------
GAS -- 1.2%
2,000,000 Louis Dreyfus Natural Gas
Corporation, Sr. Sub. Note,
9.250% 06/15/04.................. 2,139,400
------------
HEALTHCARE -- 1.2%
2,000,000 Tenet Healthcare Corporation, Sr.
Note, 8.625% 12/01/03............ 2,065,000
------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
CORPORATE BONDS AND NOTES -- (CONTINUED)
<S> <C> <C>
INDUSTRIAL -- 10.6%
$ 1,000,000 Auburn Hills Trust Certificates,
Deb., 12.000% 05/01/20+.......... $ 1,527,160
2,000,000 B.A.T. Capital Corporation, MTN,
6.500% 11/24/03.................. 1,990,840
1,000,000 Bowater Inc., Deb.,
9.500% 10/15/12.................. 1,231,010
1,500,000 Domtar, Inc., Sr. Note,
12.000% 04/15/01................. 1,755,000
1,500,000 Inland Steel Company, First
Mortgage, Series T,
12.000% 12/01/98................. 1,653,750
2,000,000 Stone Container Corporation, Sr.
Note, 11.875% 12/01/98........... 2,110,000
1,500,000 United States Can Company,
Sr. Sub. Note,
13.500% 01/15/02................. 1,635,000
2,000,000 USG Corporation, Sr. Note, Series
B, 9.250% 09/15/01............... 2,110,000
2,000,000 Valassis Inserts Inc., Sr. Note,
9.375% 03/15/99.................. 2,015,760
2,000,000 Warren (SD) Company, Sr. Sub. Note,
12.000% 12/15/04................. 2,210,000
------------
18,238,520
------------
INSURANCE -- 2.3%
2,000,000 John Hancock Mutual Life Insurance,
Note,
7.375% 02/15/24**................ 1,946,540
2,000,000 Pacific Mutual Life Insurance
Company, 7.900% 12/30/23**....... 2,041,100
------------
3,987,640
------------
LEISURE -- 0.5%
1,000,000 Bally Health & Tennis Corporation,
Note,
13.000% 01/15/03................. 800,000
------------
PUBLISHING -- 1.4%
2,000,000 News America Holdings Inc., Deb.,
10.125% 10/15/12................. 2,387,020
------------
TELECOMMUNICATIONS -- 3.5%
2,000,000 Jones Intercable, Inc., Sr. Note,
9.625% 03/15/02.................. 2,140,000
2,000,000 Rogers Cablesystems Limited, Deb.,
10.000% 12/01/07................. 2,085,000
1,500,000 TKR Cable 1, Inc., Sr. Deb.,
10.500% 10/30/07................. 1,757,850
------------
5,982,850
------------
TRANSPORTATION -- 1.9%
1,500,000 Federal Express Corporation, Note,
9.650% 06/15/12.................. 1,833,030
1,500,000 Qantas Airways Limited, Sr. Note,
6.625% 06/30/98**................ 1,514,895
------------
3,347,925
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 33
NATIONS FUND TRUST
NATIONS DIVERSIFIED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
CORPORATE BONDS AND NOTES -- (CONTINUED)
<S> <C> <C>
UTILITIES -- 1.7%
$ 1,000,000 Commonwealth Edison Company,
First Mortgage,
8.625% 02/01/22.................. $ 1,076,110
750,000 GTE Corporation, Deb.,
7.830% 05/01/23.................. 781,935
1,000,000 Texas Utilities Electric Company,
First Mortgage & Collateral,
9.750% 05/01/21.................. 1,150,090
------------
3,008,135
------------
TOTAL CORPORATE BONDS
AND NOTES
(Cost $66,220,020)............... 68,612,099
-----------
FOREIGN BONDS AND NOTES -- 2.5%
2,000,000 Hydro-Quebec, Deb., Series H,
9.400% 02/01/21.................. 2,479,960
1,500,000 Nova Scotia Province (of Canada),
9.125% 05/01/21.................. 1,821,990
------------
TOTAL FOREIGN BONDS
AND NOTES
(Cost $4,063,738)................ 4,301,950
-----------
MORTGAGE-BACKED SECURITY -- 2.6%
(Cost $4,404,508)
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA)
CERTIFICATE -- 2.6%
4,468,368 7.000% 08/01/25.................... 4,465,553
-----------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 50.6%
<S> <C> <C>
U.S. TREASURY BONDS -- 22.9%
$14,000,000 12.750% 11/15/10................. $ 21,118,160
14,000,000 8.750% 08/15/20.................. 18,329,080
------------
39,447,240
------------
U.S. TREASURY NOTES -- 27.7%
26,000,000 6.250% 05/31/00.................. 26,727,220
21,000,000 5.750% 08/15/03.................. 21,029,610
------------
47,756,830
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $83,099,738)............... 87,204,070
-----------
TOTAL SECURITIES
(Cost $157,788,004).............. 164,583,672
-----------
REPURCHASE AGREEMENT -- 3.2% (Cost $5,525,000)
5,525,000 Agreement with CS First
Boston Corporation,
5.830% dated 11/30/95, to be
repurchased at $5,525,895 on
12/01/95, collateralized by:
$5,663,138 U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15......................... 5,525,000
-----------
TOTAL INVESTMENTS
(Cost $163,313,004*)................ 98.7% 170,108,672
OTHER ASSETS AND
LIABILITIES (NET)................... 1.3 2,310,454
----- ------------
NET ASSETS............................ 100.0% $172,419,126
---- -----------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
+ Step coupon bond. Effective yield is 12.39% at acquisition date.
ABBREVIATION:
MTN Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 34
NATIONS FUND TRUST
NATIONS STRATEGIC FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
ASSET-BACKED SECURITIES -- 7.8%
<S> <C> <C>
$16,500,000 AT&T Universal Card, Master Trust,
Series 95-2A,
5.950% 12/17/02.................. $ 16,530,937
14,750,000 Banc One Auto Trust, Series 1995-A,
Class A-2,
6.650% 05/15/97.................. 14,793,790
12,000,000 Chase Manhattan, Grantor Trust,
Series 95-B, Class A,
5.900% 11/15/01.................. 12,011,250
7,887,028 Daimler-Benz, Auto Grantor Trust,
Series 1994-A, Class A,
5.950% 12/15/00.................. 7,898,119
7,750,000 EQCC Home Equity Loan Trust, Series
1994-2, Class A1,
6.350% 10/15/09.................. 7,756,055
5,960,572 Green Tree Financial Corporation,
Series 1994-4, Class A-1,
6.550% 07/15/19+................. 5,988,468
29,960 Morgan Stanley Group Inc., Notes,
8.000% 07/20/17.................. 29,979
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $64,796,020)............... 65,008,598
------------
<CAPTION>
CORPORATE NOTES -- 10.7%
<S> <C> <C>
BANKING AND FINANCE -- 7.9%
8,500,000 Ahmanson (HF) & Company, MTN,
6.530% 06/01/98.................. 8,571,740
6,500,000 Banponce Financial Corporation,
MTN,
7.650% 05/03/00.................. 6,809,335
7,500,000 Beneficial Corporation, MTN,
8.100% 11/23/98.................. 7,941,225
7,250,000 Capital One Bank, MTN,
6.660% 08/17/98.................. 7,352,152
Ford Motor Credit Corporation, MTN:
7,500,000 5.750% 05/14/98.................. 7,487,025
8,725,000 7.450% 07/12/99.................. 9,135,337
7,750,000 General Motors Acceptance
Corporation, MTN,
6.250% 10/18/99.................. 7,812,078
10,500,000 US West Capital Funding, MTN,
6.200% 11/30/00.................. 10,601,640
------------
65,710,532
------------
TELECOMMUNICATIONS -- 1.1%
8,000,000 TKR Cable 1, Inc., Sr. Deb.,
10.500% 10/30/07................. 9,375,200
------------
TRANSPORTATION -- 0.7%
6,000,000 Qantas Airways Limited, Sr. Note,
6.625% 06/30/98**................ 6,059,580
------------
OTHER -- 1.0%
8,000,000 International Lease, MTN,
6.270% 02/10/99.................. 8,042,560
------------
TOTAL CORPORATE NOTES
(Cost $87,503,092)............... 89,187,872
-----------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------------------------------------------------------
FOREIGN BONDS AND NOTES -- 0.5%
<S> <C> <C>
(Cost $4,346,396)
$ 4,500,000 Skandia Capital AB, Guaranteed
Eurobonds,
6.000% 11/02/98.................. $ 4,490,010
-----------
MORTGAGE-BACKED SECURITIES -- 24.4%
FEDERAL HOME LOAN MORTGAGE
CORPORATION (FHLMC)
CERTIFICATES -- 1.4%
11,666,074 7.500% 04/01/07.................. 11,943,143
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA)
CERTIFICATES -- 11.9%
6,070,979 8.500% 11/01/09.................. 6,321,407
20,637,361 8.000% 11/01/23.................. 21,264,737
18,171,365 7.000% 08/01/25.................. 18,159,917
13,913,239 7.000% 08/01/25.................. 13,904,474
17,318,154 7.500% 09/01/25.................. 17,615,680
21,570,496 7.000% 10/01/25.................. 21,556,906
------------
98,823,121
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) CERTIFICATES -- 11.1%
5,380,401 7.000% 07/15/10.................. 5,467,832
70,737 9.000% 04/15/20.................. 74,981
10,202,738 8.000% 06/15/22.................. 10,574,322
10,421,679 8.000% 07/15/22.................. 10,793,003
6,021,905 8.000% 03/15/23.................. 6,236,466
5,100,548 7.000% 05/15/23.................. 5,111,667
19,411,227 7.000% 09/15/23.................. 19,453,543
4,216,534 7.500% 12/15/23.................. 4,303,479
3,876,317 7.500% 03/15/24.................. 3,956,246
5,797,309 7.500% 03/15/24.................. 5,916,849
482,732 9.000% 04/15/24.................. 506,415
17,352,947 8.000% 03/15/25.................. 17,954,747
1,965,542 8.000% 07/15/25.................. 2,033,707
244,380 9.000% 11/15/27.................. 249,038
------------
92,632,295
------------
TOTAL MORTGAGE-
BACKED SECURITIES
(Cost $200,064,273).............. 203,398,559
-----------
U.S. TREASURY OBLIGATIONS -- 52.2%
U.S. TREASURY BONDS -- 30.0%
22,896,000 10.750% 08/15/05................. 31,134,897
52,250,000 12.750% 11/15/10................. 78,815,990
20,000,000 12.500% 08/15/14................. 31,796,800
42,050,000 8.875% 08/15/17................. 55,092,228
40,245,000 8.750% 08/15/20................. 52,689,559
------------
249,529,474
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 35
NATIONS FUND TRUST
Nations Strategic Fixed Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- (CONTINUED)
<S> <C> <C>
U.S. TREASURY NOTES -- 22.2%
$34,000,000 6.125% 05/31/97.................. $ 34,340,000
80,570,000 5.125% 04/30/98.................. 80,066,438
62,400,000 8.250% 07/15/98.................. 66,660,672
3,275,000 6.500% 05/15/05.................. 3,445,398
------------
184,512,508
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $404,449,615).............. 434,041,982
-----------
TOTAL SECURITIES
(Cost $761,159,396).............. 796,127,021
-----------
<CAPTION>
REPURCHASE AGREEMENT -- 3.4% (Cost $28,329,000)
<S> <C> <C>
28,329,000 Agreement with CS First
Boston Corporation,
5.830% dated 11/30/95, to be
repurchased at $28,333,588 on
12/01/1995, collateralized by:
$29,037,288 U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15......................... 28,329,000
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $789,488,396*)............... 99.0% $824,456,021
OTHER ASSETS AND
LIABILITIES (NET).................. 1.0 8,108,475
----- ------------
NET ASSETS........................... 100.0% $832,564,496
---- -----------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes was $791,498,047.
** Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
+ Variable rate security. The interest rate shown reflects the rate in effect
at November 30, 1995.
ABBREVIATION:
MTN Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 36
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT- NATIONS NATIONS STRATEGIC
INTERMEDIATE SHORT-TERM DIVERSIFIED FIXED
GOVERNMENT INCOME INCOME INCOME
FUND FUND FUND FUND
---------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1),
See accompanying schedules:
Securities..................................... $538,922,451 $183,970,067 $164,583,672 $796,127,021
Repurchase agreements.......................... 59,258,000 414,000 5,525,000 28,329,000
------------ ------------ ------------ ------------
Total investments.............................. 598,180,451 184,384,067 170,108,672 824,456,021
Cash............................................. 752 4 203 342,385
Interest receivable.............................. 5,610,289 3,503,076 2,622,336 9,150,502
Receivable for investment securities sold........ -- 1,964,150 -- --
Receivable for Fund shares sold.................. 2,217,411 1,069,404 384,437 6,578,503
Unamortized organization costs (Note 6).......... 4,663 7,393 7,731 7,731
Prepaid expenses and other assets................ 47,281 -- 321 47
------------ ------------ ------------ ------------
Total Assets................................... 606,060,847 190,928,094 173,123,700 840,535,189
------------ ------------ ------------ ------------
LIABILITIES:
Payable for Fund shares redeemed................. 1,313,446 798,603 31,729 3,700,320
Payable for investment securities purchased
(Notes 1 and 4)................................ 84,329,375 1,992,810 -- --
Investment advisory fee payable (Note 2)......... 130,483 11,786 38,969 325,282
Administration fee payable (Note 2).............. 42,324 15,319 6,593 67,233
Shareholder servicing and distribution fees
payable (Note 3)............................... 23,436 5,129 59,462 2,533
Transfer agent fee payable (Note 2).............. 48,695 18,030 13,003 74,473
Custodian fees payable (Note 2).................. 6,410 2,709 2,347 9,171
Dividends payable................................ 1,979,760 858,242 497,595 3,697,147
Accrued Trustees' fees and expenses (Note 2)..... 3,812 1,354 1,056 5,576
Accrued expenses and other payables.............. 35,196 34,579 53,820 88,958
------------ ------------ ------------ ------------
Total Liabilities.............................. 87,912,937 3,738,561 704,574 7,970,693
------------ ------------ ------------ ------------
NET ASSETS....................................... $518,147,910 $187,189,533 $172,419,126 $832,564,496
------------ ------------ ------------ ------------
Investments, at cost (Note 1).................... $593,266,907 $181,746,917 $163,313,004 $789,488,396
------------ ------------ ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 37
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT- NATIONS NATIONS STRATEGIC
INTERMEDIATE SHORT-TERM DIVERSIFIED FIXED
GOVERNMENT INCOME INCOME INCOME
FUND FUND FUND FUND
---------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Distributions in excess of net investment
income................................... $ (1,979,760) $ (800,993) $ (137,179) $ (1,416,564)
Accumulated net realized loss on
investments sold, written options and
futures contracts........................ (16,311,980) (7,715,846) (588,689) (12,045,059)
Net unrealized appreciation of
investments.............................. 4,913,544 2,637,150 6,795,668 34,967,625
Paid-in capital............................ 531,526,106 193,069,222 166,349,326 811,058,494
------------ ------------ ------------ ------------
$518,147,910 $187,189,533 $172,419,126 $832,564,496
------------ ------------ ------------ ------------
NET ASSETS:
Trust A Shares............................. $425,199,893 $169,291,267 $ 64,799,732 $823,098,471
------------ ------------ ------------ ------------
Investor A Shares.......................... $ 64,848,410 $ 2,969,451 $ 13,150,014 $ 6,661,619
------------ ------------ ------------ ------------
Investor C Shares.......................... $ 13,206,310 $ 6,056,087 $ 3,582,472 $ 226,773
------------ ------------ ------------ ------------
Investor N Shares.......................... $ 14,893,297 $ 8,872,728 $ 90,886,908 $ 2,577,633
------------ ------------ ------------ ------------
SHARES OUTSTANDING:
Trust A Shares............................. 102,674,447 17,203,315 5,987,960 80,531,375
------------ ------------ ------------ ------------
Investor A Shares.......................... 15,658,944 301,756 1,215,178 651,764
------------ ------------ ------------ ------------
Investor C Shares.......................... 3,188,953 615,440 331,050 22,187
------------ ------------ ------------ ------------
Investor N Shares.......................... 3,596,319 901,706 8,398,667 252,198
------------ ------------ ------------ ------------
TRUST A SHARES:
Net asset value, offering price and
redemption price per share............... $4.14 $9.84 $10.82 $10.22
----- ----- ------ ------
INVESTOR A SHARES:
Net asset value and redemption price per
share.................................... $4.14 $9.84 $10.82 $10.22
----- ----- ------ ------
Maximum sales charge....................... 3.25% 1.50% 4.75% 3.25%
Maximum offering price per share........... $4.28 $9.99 $11.36 $10.56
----- ----- ------ ------
INVESTOR C SHARES*:
Net asset value and offering price per
share.................................... $4.14 $9.84 $10.82 $10.22
----- ----- ------ ------
INVESTOR N SHARES*:
Net asset value and offering price per
share.................................... $4.14 $9.84 $10.82 $10.22
----- ----- ------ ------
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge ("CDSC") for all Funds except Nations
Short-Term Income Fund for which there is no CDSC.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 38
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT- NATIONS NATIONS STRATEGIC
INTERMEDIATE SHORT-TERM DIVERSIFIED FIXED
GOVERNMENT INCOME INCOME INCOME
FUND FUND FUND FUND
-------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest............................................ $ 32,856,613 $12,942,904 $ 8,969,617 $ 42,609,075
Dividends........................................... 15,194 -- -- 17,327
Fee income (Note 4)................................. 239,291 -- 7,955 --
----------- ----------- ----------- ------------
Total investment income........................ 33,111,098 12,942,904 8,977,572 42,626,402
----------- ----------- ----------- ------------
EXPENSES:
Investment advisory fee (Note 2).................... 3,066,392 1,128,394 688,154 3,787,275
Administration fee (Note 2)......................... 503,568 185,278 113,351 623,321
Transfer agent fees (Note 2)........................ 232,980 130,202 91,381 344,765
Custodian fees (Note 2)............................. 76,468 33,729 22,831 91,313
Legal and audit fees................................ 107,780 56,110 39,587 114,552
Trustees' fees and expenses (Note 2)................ 9,646 3,504 2,373 13,274
Amortization of organization costs (Note 6)......... 6,996 4,032 4,032 4,032
Other............................................... 62,953 71,210 99,689 112,220
----------- ----------- ----------- ------------
Subtotal....................................... 4,066,783 1,612,459 1,061,398 5,090,752
Shareholder servicing and distribution fees (Note
3):
Investor A Shares................................. 134,526 5,271 29,942 4,577
Investor C Shares................................. 70,814 24,650 22,769 349
Investor N Shares................................. 70,600 38,981 538,683 14,648
Fees waived by investment adviser and/or
administrator(s) (Note 2)......................... (1,022,131) (564,197) (147,160) (631,213)
----------- ----------- ----------- ------------
Total expenses................................. 3,320,592 1,117,164 1,505,632 4,479,113
----------- ----------- ----------- ------------
NET INVESTMENT INCOME............................... 29,790,506 11,825,740 7,471,940 38,147,289
----------- ----------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS (NOTES 1 AND 4):
Net realized gain/(loss) from:
Security transactions............................. 12,467,455 (424,531) 2,049,506 10,811,402
Futures contracts................................. -- -- (65,288) --
Written options................................... -- -- -- (210,786)
----------- ----------- ----------- ------------
Net realized gain/(loss) on investments during the
year.............................................. 12,467,455 (424,531) 1,984,218 10,600,616
Change in unrealized appreciation/(depreciation) of:
Securities........................................ 14,300,508 7,297,230 10,875,804 51,955,979
Futures contracts................................. -- -- (59,250) --
----------- ----------- ----------- ------------
Net unrealized appreciation of investments during
the year.......................................... 14,300,508 7,297,230 10,816,554 51,955,979
----------- ----------- ----------- ------------
Net realized and unrealized gain on investments..... 26,767,963 6,872,699 12,800,772 62,556,595
----------- ----------- ----------- ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................................... $ 56,558,469 $18,698,439 $20,272,712 $100,703,884
------------ ----------- ----------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 39
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT- NATIONS NATIONS STRATEGIC
INTERMEDIATE SHORT-TERM DIVERSIFIED FIXED
GOVERNMENT INCOME INCOME INCOME
FUND FUND FUND FUND
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income............................. $ 29,790,506 $ 11,825,740 $ 7,471,940 $ 38,147,289
Net realized gain/(loss) on investments........... 12,467,455 (424,531) 1,984,218 10,600,616
Change in unrealized appreciation of
investments..................................... 14,300,508 7,297,230 10,816,554 51,955,979
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations...................................... 56,558,469 18,698,439 20,272,712 100,703,884
Distributions to shareholders from net investment
income:
Trust A Shares.................................. (24,494,854) (10,476,071) (1,933,237) (37,889,240)
Investor A Shares............................... (3,827,906) (159,498) (825,992) (132,124)
Investor C Shares............................... (765,312) (414,795) (192,391) (3,800)
Investor N Shares............................... (615,456) (655,895) (4,520,320) (122,106)
Distributions to shareholders in excess of net
investment income:
Trust A Shares.................................. (71,082) -- -- --
Investor A Shares............................... (11,483) -- -- --
Investor C Shares............................... (2,410) -- -- --
Investor N Shares............................... (2,003) -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Trust A Shares.................................. (29,897,299) (13,648,786) 39,262,795 210,323,838
Investor A Shares............................... (15,830,656) 381,422 988,601 5,443,406
Investor C Shares............................... (4,283,855) (2,296,003) 606,887 178,133
Investor N Shares............................... 3,285,599 (8,093,168) 27,949,143 213,298
------------ ------------ ------------ ------------
Net increase/(decrease) in net assets............. (19,958,248) (16,664,355) 81,608,198 278,715,289
NET ASSETS:
Beginning of year................................. 538,106,158 203,853,888 90,810,928 553,849,207
------------ ------------ ------------ ------------
End of year....................................... $518,147,910 $187,189,533 $172,419,126 $832,564,496
------------ ------------ ------------ ------------
Distributions in excess of net investment income
at end of year.................................. $ (1,979,760) $ (800,993) $ (137,179) $ (1,416,564)
------------ ------------ ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 40
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED NOVEMBER 30, 1994
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT- NATIONS NATIONS STRATEGIC
INTERMEDIATE SHORT-TERM DIVERSIFIED FIXED
GOVERNMENT INCOME INCOME INCOME
FUND FUND FUND FUND
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income............................ $ 36,410,192 $ 12,574,660 $ 5,724,450 $ 30,140,360
Net realized loss on investments................. (28,549,654) (7,691,096) (2,707,354) (21,688,157)
Change in unrealized depreciation of
investments.................................... (24,476,389) (5,441,726) (5,881,446) (29,605,380)
------------ ------------ ----------- ------------
Net decrease in net assets resulting from
operations..................................... (16,615,851) (558,162) (2,864,350) (21,153,177)
Distributions to shareholders from net investment
income:
Trust A Shares................................. (27,184,146) (9,632,385) (1,931,956) (29,201,850)
Investor A Shares.............................. (6,359,840) (260,874) (843,251) (57,573)
Investor C Shares.............................. (1,158,627) (597,428) (208,437) (2,272)
Investor N Shares.............................. (567,087) (1,271,197) (2,740,806) (90,250)
Distributions to shareholders in excess of net
investment income:
Trust A Shares................................. (608,559) (417,856) (1,077) (989,071)
Investor A Shares.............................. (142,373) (12,497) (496) (2,013)
Investor C Shares.............................. (25,939) (28,534) (135) (182)
Investor N Shares.............................. (12,695) (61,806) (1,024) (3,397)
Distributions to shareholders from net realized
gain on investments:
Trust A Shares................................. (2,862,616) -- (389,055) (17,655,811)
Investor A Shares.............................. (691,160) -- (179,394) (37,550)
Investor C Shares.............................. (136,409) -- (48,931) (2,083)
Investor N Shares.............................. (66,609) -- (369,942) (54,901)
Distributions to shareholders from capital:
Trust A Shares................................. -- (336,576) -- --
Investor A Shares.............................. -- (12,733) -- --
Investor C Shares.............................. -- (24,695) -- --
Investor N Shares.............................. -- (54,839) -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Trust A Shares................................. 32,833,999 (14,463,998) (3,157,987) 74,025,010
Investor A Shares.............................. (85,905,643) (8,389,118) (1,029,274) (26,909)
Investor C Shares.............................. (12,682,260) (11,014,290) (597,232) (15,871)
Investor N Shares.............................. 3,129,388 (21,665,080) 35,066,952 755,895
------------ ------------ ----------- ------------
Net increase/(decrease) in net assets............ (119,056,427) (68,802,068) 20,703,605 5,487,995
NET ASSETS:
Beginning of year................................ 657,162,585 272,655,956 70,107,323 548,361,212
------------ ------------ ----------- ------------
End of year...................................... $ 538,106,158 $203,853,888 $90,810,928 $553,849,207
------------- ------------ ----------- ------------
Distributions in excess of net investment income
at end of year................................. $ (2,239,557) $ (920,474) $ (138,327) $ (1,351,845)
------------- ------------ ----------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 41
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.......................................................... 24,579,332 $ 99,680,275 63,710,168 $ 266,160,158
Issued in exchange for Trust A Shares of the Nations
Adjustable Rate Government Fund (Note 9).............. ..... 6,025,104 24,522,175 -- --
Issued as reinvestment of dividends........................... 1,896,220 7,679,648 1,726,591 7,134,660
Redeemed...................................................... (40,147,433) (161,779,397) (58,620,856) (240,460,819)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... (7,646,777) $ (29,897,299) 6,815,903 $ 32,833,999
---------- ------------ ---------- ------------
INVESTOR A SHARES:
Sold.......................................................... 2,037,368 $ 8,237,086 2,977,983 $ 12,430,201
Issued in exchange for Investor A Shares of the Nations
Adjustable Rate Government Fund (Note 9).................... 1,443,458 5,874,874 -- --
Issued as reinvestment of dividends........................... 654,212 2,647,022 1,356,282 5,604,186
Redeemed...................................................... (8,115,045) (32,589,638) (25,182,476) (103,940,030)
----------- ------------- ----------- -------------
Net decrease.................................................. (3,980,007) $ (15,830,656) (20,848,211) $ (85,905,643)
---------- ------------ ---------- ------------
INVESTOR C SHARES:
Sold.......................................................... 74,021 $ 310,866 201,361 $ 843,418
Issued in exchange for Investor C Shares of the Nations
Adjustable Rate Government Fund (Note 9).................... 460,999 1,876,267 -- --
Issued as reinvestment of dividends........................... 134,005 542,106 252,433 1,039,833
Redeemed...................................................... (1,738,728) (7,013,094) (3,533,774) (14,565,511)
----------- ------------- ----------- -------------
Net decrease.................................................. (1,069,703) $ (4,283,855) (3,079,980) $ (12,682,260)
---------- ------------ ---------- ------------
INVESTOR N SHARES:
Sold.......................................................... 515,977 $ 2,097,656 1,500,229 $ 6,262,021
Issued in exchange for Investor N Shares of the Nations
Adjustable Rate Government Fund (Note 9).................... 1,161,767 4,728,391 -- --
Issued as reinvestment of dividends........................... 93,848 380,870 106,509 436,013
Redeemed...................................................... (969,418) (3,921,318) (877,675) (3,568,646)
----------- ------------- ----------- -------------
Net increase.................................................. 802,174 $ 3,285,599 729,063 $ 3,129,388
---------- ------------ ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
NATIONS SHORT-TERM INCOME FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.......................................................... 6,241,414 $ 60,571,190 7,757,098 $ 75,869,101
Issued as reinvestment of dividends........................... 374,797 3,634,442 46,721 456,621
Redeemed...................................................... (8,060,456) (77,854,418) (9,318,440) (90,789,720)
----------- ------------- ----------- -------------
Net decrease.................................................. (1,444,245) $ (13,648,786) (1,514,621) $ (14,463,998)
---------- ------------ ---------- ------------
INVESTOR A SHARES:
Sold.......................................................... 98,847 $ 957,538 194,250 $ 1,910,089
Issued as reinvestment of dividends........................... 14,396 139,563 25,830 253,013
Redeemed...................................................... (74,265) (715,679) (1,077,216) (10,552,220)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... 38,978 $ 381,422 (857,136) $ (8,389,118)
---------- ------------ ---------- ------------
INVESTOR C SHARES:
Sold.......................................................... 121,077 $ 1,180,504 581,753 $ 5,697,406
Issued as reinvestment of dividends........................... 31,936 309,332 55,070 536,756
Redeemed...................................................... (392,484) (3,785,839) (1,765,994) (17,248,452)
----------- ------------- ----------- -------------
Net decrease.................................................. (239,471) $ (2,296,003) (1,129,171) $ (11,014,290)
---------- ------------ ---------- ------------
INVESTOR N SHARES:
Sold.......................................................... 257,188 $ 2,483,655 2,699,703 $ 26,797,836
Issued as reinvestment of dividends........................... 58,175 562,749 124,814 1,218,040
Redeemed...................................................... (1,160,085) (11,139,572) (5,061,930) (49,680,956)
----------- ------------- ----------- -------------
Net decrease.................................................. (844,722) $ (8,093,168) (2,237,413) $ (21,665,080)
---------- ------------ ---------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 42
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS DIVERSIFIED INCOME FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.......................................................... 4,023,586 $ 42,829,820 427,988 $ 4,350,216
Issued as reinvestment of dividends........................... 3,345 34,589 3,140 32,035
Redeemed...................................................... (344,739) (3,601,614) (748,696) (7,540,238)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... 3,682,192 $ 39,262,795 (317,568) $ (3,157,987)
----------- ------------- ----------- -------------
INVESTOR A SHARES:
Sold.......................................................... 287,506 $ 2,967,377 245,670 $ 2,515,124
Issued as reinvestment of dividends........................... 38,406 396,397 52,214 537,364
Redeemed...................................................... (229,529) (2,375,173) (400,519) (4,081,762)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... 96,383 $ 988,601 (102,635) $ (1,029,274)
----------- ------------- ----------- -------------
INVESTOR C SHARES:
Sold.......................................................... 137,697 $ 1,424,178 53,170 $ 553,692
Issued as reinvestment of dividends........................... 10,464 108,171 15,493 159,534
Redeemed...................................................... (89,726) (925,462) (129,826) (1,310,458)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... 58,435 $ 606,887 (61,163) $ (597,232)
----------- ------------- ----------- -------------
INVESTOR N SHARES:
Sold.......................................................... 3,599,450 $ 37,140,498 4,005,665 $ 40,841,538
Issued as reinvestment of dividends........................... 238,534 2,468,253 174,145 1,763,664
Redeemed...................................................... (1,132,789) (11,659,608) (749,173) (7,538,250)
----------- ------------- ----------- -------------
Net increase.................................................. 2,705,195 $ 27,949,143 3,430,637 $ 35,066,952
----------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
NATIONS STRATEGIC FIXED INCOME FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.......................................................... 28,277,398 $ 274,652,648 27,421,382 $ 272,058,507
Issued in exchange for Class A Shares of The Capitol Mutual
Funds Fixed Income Portfolio (Note 9)....................... -- -- 2,135,389 20,649,210
Issued in exchange for Trust A Shares of the Nations Managed
Bond Fund (Note 9).......................................... 12,318,582 123,242,998 -- --
Issued as reinvestment of dividends........................... 1,855,783 18,284,223 356,632 3,520,081
Redeemed...................................................... (21,002,335) (205,856,031) (22,556,971) (222,202,788)
----------- ------------- ----------- -------------
Net increase.................................................. 21,449,428 $ 210,323,838 7,356,432 $ 74,025,010
----------- ------------- ----------- -------------
INVESTOR A SHARES:
Sold.......................................................... 250,746 $ 2,451,468 98,950 $ 969,620
Issued in exchange for Class B Shares of The Capitol Mutual
Funds Fixed Income Portfolio (Note 9)....................... -- -- 1,482 14,327
Issued in exchange for Investor A Shares of the Nations
Managed Bond Fund (Note 9).................................. 420,573 4,207,301 -- --
Issued as reinvestment of dividends........................... 10,070 100,616 5,956 59,039
Redeemed...................................................... (133,334) (1,315,979) (110,593) (1,069,895)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... 548,055 $ 5,443,406 (4,205) $ (26,909)
----------- ------------- ----------- -------------
INVESTOR C SHARES:
Sold.......................................................... 10,408 $ 104,308 487 $ 5,002
Issued in exchange for Investor C Shares of the Nations
Managed Bond Fund (Note 9).................................. 7,675 76,789 -- --
Issued as reinvestment of dividends........................... 317 3,153 333 3,302
Redeemed...................................................... (654) (6,117) (2,503) (24,175)
----------- ------------- ----------- -------------
Net increase/(decrease)....................................... 17,746 $ 178,133 (1,683) $ (15,871)
----------- ------------- ----------- -------------
INVESTOR N SHARES:
Sold.......................................................... 42,018 $ 406,207 104,746 $ 1,031,340
Issued as reinvestment of dividends........................... 9,445 92,989 11,648 115,227
Redeemed...................................................... (29,355) (285,898) (39,953) (390,672)
----------- ------------- ----------- -------------
Net increase.................................................. 22,108 $ 213,298 76,441 $ 755,895
----------- ------------- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 43
[THIS PAGE INTENTIONALLY LEFT BLANK]
41
<PAGE> 44
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
------------------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
NATIONS SHORT-INTERMEDIATE GOVERNMENT FUND 11/30/95# 11/30/94 11/30/93 11/30/92 11/30/91**
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year........................... $ 3.93 $ 4.28 $ 4.16 $ 4.17 $ 4.00##
------- ------- ------- ------- -------
Net investment income........................................ 0.24 0.23 0.23 0.28 0.10
Net realized and unrealized gain/(loss) on investments....... 0.21 (0.33) 0.14 (0.01) 0.17
------- ------- ------- ------- -------
Net increase/(decrease) in net assets resulting from
investment operations...................................... 0.45 (0.10) 0.37 0.27 0.27
Distributions:
Dividends from net investment income......................... (0.24) (0.23) (0.23) (0.28) (0.10)
Distributions in excess of net investment income............. (0.00)(a) (0.00)(a) -- -- --
Distributions from net realized capital gains................ -- (0.02) (0.02) -- --
------- ------- ------- ------- -------
Total distributions.......................................... (0.24) (0.25) (0.25) (0.28) (0.10)
------- ------- ------- ------- -------
Net asset value, end of year................................. $ 4.14 $ 3.93 $ 4.28 $ 4.16 $ 4.17
-------- -------- -------- -------- --------
Total return++............................................... 11.70% (2.23)% 9.03% 6.70%+++ 6.81%+++
-------- -------- -------- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)........................... $425,200 $433,278 $443,426 $360,497 $158,435
Ratio of operating expenses to average net assets............ 0.60% 0.59% 0.55% 0.37% 0.08%+
Ratio of net investment income to average net assets......... 5.88% 5.76% 5.40% 6.48% 7.21%+
Portfolio turnover rate...................................... 328% 133% 92% 25% 11%
Ratio of operating expenses to average net assets without
waivers and/or reimbursements.............................. 0.80% 0.80 % 0.79% 0.77% 0.82%+
Net investment income per share without waivers and/or
reimbursements............................................. $ 0.23 $ 0.22 $ 0.22 $ 0.26 $ 0.00(a)
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
---------------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
NATIONS SHORT-TERM INCOME FUND 11/30/95# 11/30/94# 11/30/93 11/30/92**
-------------------------------------------------
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year........................... $ 9.48 $ 10.01 $ 9.75 $ 10.00
------- ------- ------- -------
Net investment income........................................ 0.61 0.50 0.53 0.09
Net realized and unrealized gain/(loss) on investments....... 0.36 (0.51) 0.26 (0.25)
------- ------- ------- -------
Net increase/(decrease) in net assets resulting from
investment operations...................................... 0.97 (0.01) 0.79 (0.16)
Distributions:
Dividends from net investment income......................... (0.61) (0.48) (0.53) (0.09)
Distributions in excess of net investment income............. -- (0.02) -- --
Distributions from capital (Note 1).......................... -- (0.02) -- --
------- ------- ------- -------
Total distributions.......................................... (0.61) (0.52) (0.53) (0.09)
------- ------- ------- -------
Net asset value, end of year................................. $ 9.84 $ 9.48 $ 10.01 $ 9.75
-------- -------- -------- --------
Total return++............................................... 10.48% (0.11)% 8.26% (1.58)%+++
-------- -------- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)........................... $169,291 $176,712 $201,738 $190,680
Ratio of operating expenses to average net assets............ 0.56% 0.50% 0.37% 0.30%+
Ratio of net investment income to average net assets......... 6.32% 5.23% 5.27% 5.54%+
Portfolio turnover rate...................................... 224% 293% 121% 45%
Ratio of operating expenses to average net assets without
waivers and/or reimbursements.............................. 0.86% 0.82% 0.79% 0.90%+
Net investment income per share without waivers and/or
reimbursements............................................. $ 0.58 $ 0.47 $ 0.48 $ 0.08
<CAPTION>
- ---------------
<S> <C>
* The Nations Short-Intermediate Government Fund's Trust A Shares, Investor A
Shares, Investor C Shares and Investor N Shares commenced operations on
August 1, 1991, August 5, 1991, June 17, 1992 and June 7, 1993,
respectively.
** The Nations Short-Term Income Fund's Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares commenced operations on September
30, 1992, October 2, 1992, October 2, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the average share method, which
more appropriately presents the per share data for the period since the use
of the undistributed method did not accord with the results of operations.
## The Nations Short-Intermediate Government Fund's net asset value upon
commencement of operations was $2.00 per share. Effective September 25, 1991,
the net asset value doubled as a result of the reclassification of each
outstanding share into half as many shares (reverse split).
(a) Amount represents less than $0.01.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 45
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
-------------------------------------------------------------- ------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95# 11/30/94 11/30/93 11/30/92 11/30/91* 11/30/95# 11/30/94 11/30/93 11/30/92*
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 3.93 $ 4.28 $ 4.16 $ 4.17 $ 4.00## $ 3.93 $ 4.28 $ 4.16 $ 4.19
------- ------- ------- ------- ------- ------- ------ ------ ------
0.23 0.22 0.22 0.27 0.10 0.22 0.20 0.20 0.10
0.21 (0.33) 0.14 (0.01) 0.17 0.21 (0.33) 0.14 (0.03)
------- ------- ------- ------- ------- ------- ------ ------ ------
0.44 (0.11) 0.36 0.26 0.27 0.43 (0.13) 0.34 0.07
(0.23) (0.22) (0.22) (0.27) (0.10) (0.22) (0.20) (0.20) (0.10)
(0.00)(a) (0.00)(a) -- -- -- (0.00)(a) (0.00)(a) -- --
-- (0.02) (0.02) -- -- -- (0.02) (0.02) --
------- ------- ------- ------- ------- ------- ------ ------ ------
(0.23) (0.24) (0.24) (0.27) (0.10) (0.22) (0.22) (0.22) (0.10)
------- ------- ------- ------- ------- ------- ------ ------ ------
$ 4.14 $ 3.93 $ 4.28 $ 4.16 $ 4.17 $ 4.14 $ 3.93 $ 4.28 $ 4.16
------- ------- -------- -------- ------- ------- ------- ------- -------
11.48% (2.41)% 8.85% 6.61%+++ 6.81%+++ 11.15% (2.80)% 8.20% 1.64%+++
------- ------- -------- -------- ------- ------- ------- ------- -------
$64,848 $77,128 $173,449 $188,624 $53,874 $13,206 $16,725 $31,440 $ 24,352
0.80% 0.77% 0.70% 0.48% 0.08%+ 1.10% 1.17% 1.30% 1.18%+
5.68% 5.58% 5.25% 6.34% 7.21%+ 5.38% 5.18% 4.65% 4.80%+
328% 133% 92% 25% 11% 328% 133% 92% 25%
1.00% 0.98% 0.94% 0.88% 0.82%+ 1.30% 1.38% 1.54% 1.44%+
$ 0.22 $ 0.21 $ 0.21 $ 0.25 $ 0.00(a) $ 0.21 $ 0.19 $ 0.19 $ 0.09
<CAPTION>
INVESTOR N SHARES
------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95# 11/30/94 11/30/93*
-------------------------------------
<S> <C> <C>
$ 3.93 $ 4.28 $ 4.26
------- ------- ------
0.21 0.20 0.09
0.21 (0.33) 0.02
------- ------- ------
0.42 (0.13) 0.11
(0.21) (0.20) (0.09)
(0.00)(a) (0.00)(a) --
-- (0.02) --
------- ------- ------
(0.21) (0.22) (0.09)
------- ------- ------
$ 4.14 $ 3.93 $ 4.28
------- ------- -------
11.02% (2.81)% 2.65%
------- ------- -------
$14,893 $10,974 $ 8,847
1.20% 1.19% 1.15%+
5.28% 5.16% 4.80%+
328% 133% 92%
1.40% 1.40% 1.39%+
$ 0.20 $ 0.19 $ 0.09
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
------------------------------------------------ ------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95# 11/30/94# 11/30/93 11/30/92** 11/30/95# 11/30/94# 11/30/93 11/30/92**
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.48 $ 10.01 $ 9.75 $ 10.00 $ 9.48 $ 10.01 $ 9.75 $ 10.00
------- ------- ------- ------- ------- ------ ------ ------
0.59 0.48 0.51 0.08 0.57 0.46 0.48 0.08
0.36 (0.51) 0.26 (0.26) 0.36 (0.51) 0.26 (0.26)
------- ------- ------- ------- ------- ------ ------ ------
0.95 (0.03) 0.77 (0.18) 0.93 (0.05) 0.74 (0.18)
(0.59) (0.46) (0.51) (0.07) (0.57) (0.44) (0.48) (0.07)
-- (0.02) -- -- -- (0.02) -- --
-- (0.02) -- -- -- (0.02) -- --
------- ------- ------- ------- ------- ------ ------ ------
(0.59) (0.50) (0.51) (0.07) (0.57) (0.48) (0.48) (0.07)
------- ------- ------- ------- ------- ------ ------ ------
$ 9.84 $ 9.48 $ 10.01 $ 9.75 $ 9.84 $ 9.48 $ 10.01 $ 9.75
------- ------- -------- -------- ------- ------- ------- -------
10.29% (0.33)% 8.03% (1.81)%+++ 10.08% (0.51)% 7.73% (1.82)%+++
------- ------- -------- -------- ------- ------- ------- -------
$ 2,969 $ 2,490 $11,205 $ 254 $ 6,056 $ 8,102 $19,851 $ 6,747
0.76% 0.71% 0.57% 0.45%+ 0.91% 0.89% 0.87% 0.80%+
6.12% 5.02% 5.07% 5.39%+ 5.97% 4.84% 4.77% 5.04%+
224% 293% 121% 45% 224% 293% 121% 45%
1.06% 1.03% 0.99% 1.05%+ 1.21% 1.21% 1.29% 1.40%+
$ 0.56 $ 0.45 $ 0.48 $ 0.07 $ 0.54 $ 0.43 $ 0.45 $ 0.07
<CAPTION>
INVESTOR N SHARES
------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95# 11/30/94# 11/30/93**
--------------------------------------
<S> <C> <C>
$ 9.48 $ 10.01 $ 9.94
------- ------- ------
0.57 0.47 0.22
0.36 (0.51) 0.07
------- ------- ------
0.93 (0.04) 0.29
(0.57) (0.45) (0.22)
-- (0.02) --
-- (0.02) --
------- ------- ------
(0.57) (0.49) (0.22)
------- ------- ------
$ 9.84 $ 9.48 $ 10.01
------- -------- -------
10.10% (0.46)% 2.96%
------- -------- -------
$ 8,873 $16,550 $ 39,861
0.91% 0.85% 0.72%+
5.97% 4.88% 4.92%+
224% 293% 121%
1.21% 1.17% 1.14%+
$ 0.54 $ 0.44 $ 0.21
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 46
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
--------------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
NATIONS DIVERSIFIED INCOME FUND 11/30/95 11/30/94# 11/30/93# 11/30/92*
-------------------------------------------------
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.......................................... $ 9.67 $ 10.88 $ 9.97 $ 10.00
-------- -------- -------- --------
Net investment income....................................................... 0.73 0.74 0.78 0.06
Net realized and unrealized gain/(loss) on investments...................... 1.15 (1.06) 0.91 (0.03)
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting from investment
operations................................................................ 1.88 (0.32) 1.69 0.03
Distributions:
Dividends from net investment income........................................ (0.73) (0.74) (0.78) (0.06)
Distributions in excess of net investment income............................ -- (0.00)(a) -- --
Distributions from net realized capital gains............................... -- (0.15) -- --
-------- -------- -------- --------
Total distributions......................................................... (0.73) (0.89) (0.78) (0.06)
-------- -------- -------- --------
Net asset value, end of year................................................ $ 10.82 $ 9.67 $ 10.88 $ 9.97
-------- -------- -------- --------
Total return++.............................................................. 20.11% (3.05)% 17.40% 0.32%+++
-------- -------- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).......................................... $64,800 $ 22,298 $ 28,553 $ 23,962
Ratio of operating expenses to average net assets........................... 0.80% 0.74% 0.55% 0.25%+
Ratio of net investment income to average net assets........................ 7.03% 7.31% 7.02% 7.76%+
Portfolio turnover rate..................................................... 96% 144% 86% 46%
Ratio of operating expenses to average net assets without waivers and/or
reimbursements............................................................ 0.93% 0.95% 0.95% 0.85%+
Net investment income per share without waivers and/or reimbursements....... $ 0.72 $ 0.72 $ 0.70 $ 0.05
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
--------------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
NATIONS STRATEGIC FIXED INCOME FUND 11/30/95 11/30/94 11/30/93 11/30/92**
-------------------------------------------------
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.......................................... $ 9.32 $ 10.55 $ 9.94 $ 10.00
-------- -------- -------- --------
Net investment income....................................................... 0.59 0.53 0.56 0.05
Net realized and unrealized gain/(loss) on investments...................... 0.90 (0.89) 0.62 (0.06)
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting from investment
operations................................................................ 1.49 (0.36) 1.18 (0.01)
Distributions:
Dividends from net investment income........................................ (0.59) (0.51) (0.56) (0.05)
Distributions in excess of net investment income............................ -- (0.02) -- --
Distributions from net realized capital gains............................... -- (0.34) (0.01) --
-------- -------- -------- --------
Total distributions......................................................... (0.59) (0.87) (0.57) (0.05)
-------- -------- -------- --------
Net asset value, end of year................................................ $ 10.22 $ 9.32 $ 10.55 $ 9.94
-------- -------- -------- --------
Total return++.............................................................. 16.45% (3.58)% 12.05% (0.11)%+++
-------- -------- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).......................................... $823,098 $550,697 $545,538 $581,329
Ratio of operating expenses to average net assets........................... 0.71% 0.68% 0.61% 0.26%+
Ratio of net investment income to average net assets........................ 6.05% 5.43% 5.40% 6.15%+
Portfolio turnover rate..................................................... 228% 307% 161% 12%
Ratio of operating expenses to average net assets without waivers and/or
reimbursements............................................................ 0.81% 0.76% 0.77% 0.86%+
Net investment income per share without waivers and/or reimbursements....... $ 0.58 $ 0.52 $ 0.55 $ 0.04
</TABLE>
- ---------------
* The Nations Diversified Income Fund's Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares commenced operations on October 30,
1992, November 25, 1992, November 9, 1992 and June 7, 1993, respectively.
** The Nations Strategic Fixed Income Fund's Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares commenced operations on October 30,
1992, November 19, 1992, November 16, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the average share method, which
more appropriately presents the per share data for the period since the use
of the undistributed method did not accord with the results of operations.
(a) Amount represents less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 47
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR A SHARES INVESTOR C SHARES N SHARES
------------------------------------------------- ------------------------------------------------- --------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94# 11/30/93# 11/30/92* 11/30/95 11/30/94# 11/30/93# 11/30/92* 11/30/95
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.67 $ 10.88 $ 9.96 $10.02 $ 9.67 $10.88 $ 9.96 $ 9.93 $ 9.67
------- ------- ------- ------ ------ ------ ------ ----- -------
0.71 0.72 0.76 0.01 0.66 0.67 0.70 0.03 0.66
1.15 (1.06) 0.92 (0.06) 1.15 (1.06) 0.92 0.02 1.15
------- ------- ------- ------ ------ ------ ------ ----- -------
1.86 (0.34) 1.68 (0.05) 1.81 (0.39) 1.62 0.05 1.81
(0.71) (0.72) (0.76) (0.01) (0.66) (0.67) (0.70) (0.02) (0.66)
-- (0.00)(a) -- -- -- (0.00)(a) -- -- --
-- (0.15) -- -- -- (0.15) -- -- --
------- ------- ------- ------ ------ ------ ------ ----- -------
(0.71) (0.87) (0.76) (0.01) (0.66) (0.82) (0.70) (0.02) (0.66)
------- ------- ------- ------ ------ ------ ------ ----- -------
$ 10.82 $ 9.67 $ 10.88 $ 9.96 $10.82 $ 9.67 $10.88 $ 9.96 $ 10.82
------- ------- ------- ------- ------ ------ ------ ------- -------
19.82% (3.26)% 17.32% (0.49)%+++ 19.22% (3.77)% 16.65% 0.54%+++ 19.22%
------- ------- ------- ------- ------ ------ ------ ------- -------
$13,150 $10,819 $13,291 $ 18 $3,582 $2,636 $3,633 $ 149 $90,887
1.05% 0.96% 0.70% 0.40%+ 1.55% 1.49% 1.30% 1.00%+ 1.55%
6.78% 7.09% 6.87% 7.61%+ 6.28% 6.56% 6.27% 7.01%+ 6.28%
96% 144% 86% 46% 96% 144% 86% 46% 96%
1.18% 1.17% 1.10% 1.00%+ 1.68% 1.70% 1.70% 1.60%+ 1.68%
$ 0.70 $ 0.70 $ 0.70 $ 0.01 $ 0.65 $ 0.65 $ 0.64 $ 0.03 $ 0.65
<CAPTION>
YEAR PERIOD
ENDED ENDED
11/30/94# 11/30/93#*
- ----------------------------
<S> <C>
$ 10.88 $ 10.59
------- -------
0.67 0.30
(1.06) 0.29
------- -------
(0.39) 0.59
(0.67) (0.30)
(0.00)(a) --
(0.15) --
------- -------
(0.82) (0.30)
------- -------
$ 9.67 $ 10.88
------- -------
(3.77)% 5.58%
------- -------
$55,058 $ 24,630
1.49% 1.30%+
6.56% 6.27%+
144% 86%
1.70% 1.70%+
$ 0.65 $ 0.27
</TABLE>
<TABLE>
<CAPTION>
INVESTOR
INVESTOR A SHARES INVESTOR C SHARES N SHARES
------------------------------------------------- ------------------------------------------------- --------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92** 11/30/95 11/30/94 11/30/93 11/30/92** 11/30/95
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.32 $ 10.55 $ 9.94 $ 9.99 $ 9.32 $10.55 $ 9.94 $ 9.97 $ 9.32
------ ----- ------ ----- ------ ------ ------ ------ ------
0.57 0.51 0.54 0.01 0.54 0.47 0.48 0.02 0.53
0.90 (0.89) 0.62 (0.06) 0.90 (0.89) 0.62 (0.04) 0.90
------ ----- ------ ----- ------ ------ ------ ------ ------
1.47 (0.38) 1.16 (0.05) 1.44 (0.42) 1.10 (0.02) 1.43
(0.57) (0.49) (0.54) -- (0.54) (0.45) (0.48) (0.01) (0.53)
-- (0.02) -- -- -- (0.02) -- -- --
-- (0.34) (0.01) -- -- (0.34) (0.01) -- --
------ ----- ------ ----- ------ ------ ------ ------ ------
(0.57) (0.85) (0.55) -- (0.54) (0.81) (0.49) (0.01) (0.53)
------ ----- ------ ----- ------ ------ ------ ------ ------
$ 10.22 $ 9.32 $ 10.55 $ 9.94 $10.22 $ 9.32 $10.55 $ 9.94 $ 10.22
------- ------- ------ ------- ------ ------ ------ ------- -------
16.22% (3.76)% 11.88% (0.49)%+++ 15.87% (4.14)% 11.20% (0.22)%+++ 15.70%
------- ------- ------- ------- ------ ------ ------ ------- -------
$ 6,662 $ 967 $ 1,138 $ 113 $ 227 $ 41 $ 65 $ 84 $ 2,578
0.91% 0.86% 0.76% 0.40%+ 1.21% 1.43% 1.36% 1.03%+ 1.36%
5.85% 5.25% 5.25% 6.00%+ 5.55% 4.68% 4.65% 5.40%+ 5.40%
228% 307% 161% 12% 228% 307% 161% 12% 228%
1.01% 0.94% 0.92% 1.00%+ 1.31% 1.51% 1.52% 1.63%+ 1.46%
$ 0.56 $ 0.50 $ 0.53 $ 0.01 $ 0.53 $ 0.46 $ 0.47 $ 0.02 $ 0.52
<CAPTION>
YEAR PERIOD
ENDED ENDED
11/30/94 11/30/93**
- -------------------------------
<S> <C>
$ 10.55 $ 10.39
------ ------
0.47 0.21
(0.89) 0.17
------ ------
(0.42) 0.38
(0.45) (0.21)
(0.02) --
(0.34) (0.01)
------ ------
(0.81) (0.22)
------ ------
$ 9.32 $ 10.55
------- -------
(4.21)% 3.64%
------- -------
$ 2,145 $ 1,620
1.33% 1.26%+
4.78% 4.75%+
307% 161%
1.41% 1.42%+
$ 0.46 $ 0.21
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 48
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company. As of the date of this report, the Trust offers thirty-one separate
portfolios. Information presented in these financial statements pertains only to
the following funds: Nations Short-Intermediate Government Fund, Nations
Short-Term Income Fund, Nations Diversified Income Fund and Nations Strategic
Fixed Income Fund (collectively, the "Funds"). The financial statements for the
remaining funds are presented under separate covers. The Funds currently offer
four classes of shares: Trust A Shares, Investor A Shares, Investor C Shares and
Investor N Shares. The Board of Trustees has authorized the issuance of Trust B
Shares for all Funds. As of November 30, 1995, no Trust B Shares have been
issued. Shareholders of a Fund have equal voting rights on matters affecting all
shareholders of the Fund equally. 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 following is a summary of
significant accounting policies followed by the Funds in the preparation of
their financial statements.
Securities Valuation: The Funds' portfolio securities which are traded on a
recognized stock exchange are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sale price
on the national securities market. Securities traded only on over-the-counter
markets are valued on the basis of the closing over-the-counter bid prices or if
no sale occurred on such day at the mean of the current bid and asked prices.
Certain securities may be valued by one or more principal market makers.
Restricted securities, securities for which market quotations are not readily
available and other assets are valued at fair value under the supervision of the
Board of Trustees. Short-term investments that mature in 60 days or less are
valued at amortized cost.
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 is
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights 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 rights. Unless permitted by the
Securities and Exchange Commission, the Fund will not enter into repurchase
agreements with the investment adviser, the distributor or any of their
affiliates. The Funds' investment adviser, acting under the supervision of the
Board of Trustees, monitors the value of the collateral received as well as the
creditworthiness of those banks and dealers with which the Funds enter into
repurchase agreements to evaluate potential risks.
Dollar Roll Transactions: Certain Funds may enter into dollar roll transactions
with financial institutions to take advantage of opportunities in the mortgage
market. Dollar roll transactions consist of the sale by the Fund of mortgage-
backed or other asset-backed securities, together with a commitment to purchase
similar, but not identical, securities at a future date, at the same price. In
addition, the Fund is paid a fee as consideration for entering into the
commitment to purchase. This fee is accrued as income over the life of the
dollar roll contract. If the broker/dealer to whom the Fund sells the security
becomes insolvent, the Fund's right to purchase or repurchase the security may
be restricted; the value of the security may change adversely over the term of
the dollar roll; the security that the Fund is required to repurchase may be
worth less than the security that the Fund originally held, and the return
earned by the Fund with the proceeds of a dollar roll may not exceed transaction
costs.
Option Contracts: The Funds may engage in options contracts for hedging the
value of a Fund's portfolio and in an effort to increase current income. Upon
the purchase of a put option or a call option by the Fund, the premium paid is
recorded as an investment, the value of which is marked-to-market daily to
reflect the current market value. When a purchased option expires, the Fund will
realize a loss in the amount of the cost of the option. When the Fund enters
into a closing sale transaction, the Fund will realize a gain or loss depending
on whether the sales proceeds from the closing sale transaction are greater or
less than the cost of the option. When the Fund exercises a put option, it will
realize a gain or loss from the sale of the underlying security and the proceeds
from such sale will be decreased by the premium originally
46
<PAGE> 49
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
paid. When the Fund exercises a call option, the cost of the security which the
Fund purchases upon exercise will be increased by the premium originally paid.
The Funds may write put and call options on portfolio securities. When the Fund
writes a call option or a put option, an amount equal to the premium received by
the Fund is recorded as a liability, the value of which is marked-to-market
daily to reflect the current value of the written option. When a written option
expires unexercised, the Fund realizes a gain equal to the amount of the premium
received. When the Fund enters into a closing purchase transaction, the Fund
realizes a gain (or loss if the cost of the closing purchase transaction exceeds
the premium received when the option was sold) without regard to any unrealized
gain or loss on the underlying security, and the liability related to such
option is eliminated. When a call option is exercised, the Fund realizes a gain
or loss from the sale of the underlying security and the proceeds from such sale
are increased by the premium originally received. When a put option is
exercised, the amount of the premium originally received will reduce the cost of
the security which the Fund purchased upon exercise.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a covered call option is that the Fund may forego the
opportunity of profit, or incur a loss, if the market price of the underlying
security increases and the option is exercised. The risk in writing a put option
is that the Fund may incur a loss if the market price of the underlying security
decreases and the option is exercised. In addition, there is the risk the Fund
may not be able to enter into a closing transaction because of an illiquid
secondary market or, for over-the-counter options, because of a counterparty's
inability to perform.
Futures Contracts: Certain of the Funds may engage in futures contracts for the
purpose of hedging against changes in values of a Fund's securities or changes
in the prevailing levels of interest rates or currency exchange rates. Upon
entering into a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount. This is known as the "initial margin." Subsequent payments
("variation margin") are made or received by the Fund each day, depending on the
daily fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gains or losses by "marking-to-market" on
a daily basis to reflect the market value of the contract at the end of each
day. The Fund recognizes a realized gain or loss when the contract is closed
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract.
Risks arise in the possible movement of the securities or indices underlying
those investments. Risks also include the possibility that there may not be a
liquid secondary market for these contracts, that a change in the value of the
contract may not correlate with changes in the value of the underlying
securities or that the counterparty to a contract may default on its obligation
to perform.
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
settlement date and is recorded on the accrual basis. Amortization of discounts
and premiums on stripped mortgage-backed securities, zero coupon bonds, original
issue discount bonds and step-up bonds is accounted for using the effective
yield method. Dividend income is recorded on the ex-dividend date. Each Fund's
investment income and realized and unrealized gains and losses are allocated
among the classes based upon the relative net assets of each class.
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.
Stripped mortgage-backed securities ("SMBS") are derivative multi-class mortgage
securities structured so that one class receives most, if not all, of the
principal from the mortgage assets, while the other class receives most, if not
all, of the interest and the remainder of the principal. If the underlying
mortgage assets experience greater than anticipated repayments of principal, a
Fund may fail to fully recoup its initial investment in an interest only
security. The market value of these securities is unusually volatile in response
to changes in interest rates.
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 capital gains (including net
short-term capital gains), unless offset by any available capital loss
carryforward, annually after the fiscal year in which earned. Additional
distributions of net investment income and capital gains may be made at the
discretion of the Board of
47
<PAGE> 50
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Trustees 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 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.
Reclassifications are made to each Funds' capital accounts to reflect income and
gains available for distribution (or available capital loss carryforwards) under
Federal income tax regulations.
Reclassifications for the year ended November 30, 1995, were as follows:
<TABLE>
<CAPTION>
INCREASE/(DECREASE) DECREASE
INCREASE UNDISTRIBUTED NET ACCUMULATED NET
PAID-IN CAPITAL INVESTMENT INCOME REALIZED GAIN/(LOSS)
--------------------------------------------------------
<S> <C> <C> <C>
Short-Intermediate Government Fund........... $ 2,186,162 $ 259,797 $ (2,445,959)
Diversified Income Fund...................... -- 1,148 (1,148)
Strategic Income Fund........................ 352,230 (64,738) (287,492)
</TABLE>
Federal Income Taxes: 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 are allocated to the Funds based upon
relative net assets. Operating expenses directly attributable to a Fund or class
of shares are charged to that 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.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS.
The Trust has entered into an Investment Advisory Agreement with NationsBank,
N.A. (together with its predecessors "NationsBank"), as successor to NationsBank
of North Carolina, N.A., an indirect wholly-owned subsidiary of NationsBank
Corporation, with respect to the Funds.
Under the terms of this Investment Advisory Agreement, NationsBank is entitled
to receive an advisory fee from each Fund equal to 0.60%, on an annualized
basis, of the average daily net assets of each Fund.
Stephens Inc. ("Stephens") serves as the Trust's administrator pursuant to an
Administration Agreement. First Data Investor Services Group, Inc., formerly The
Shareholder Services Group, Inc., a wholly-owned subsidiary of First Data
Corporation, serves as the Trust's co-administrator pursuant to a
Co-Administration Agreement. 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 average daily net assets of the Trust and the investment
portfolios of Nations Fund, Inc. and Nations Fund Portfolios, Inc. (other
registered open-end investment companies that are part of the Nations Fund
Family) on a combined basis.
For the year ended November 30, 1995, Stephens earned $817,631 (after fee
waivers) from the Funds for its services.
The investment 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 year ended November 30, 1995, the
investment adviser, administrator and/or co-administrator voluntarily waived
fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED FEES WAIVED BY
BY ADMINISTRATOR/
ADVISER CO-ADMINISTRATOR
-------------------------------
<S> <C> <C>
Short-Intermediate Government Fund................................ $ 1,022,131 $ --
Short-Term Income Fund............................................ 564,197 --
Diversified Income Fund........................................... 114,692 32,468
Strategic Fixed Income Fund....................................... 631,213 --
</TABLE>
48
<PAGE> 51
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
No officer, director or employee of NationsBank, Stephens or First Data Investor
Services Group, Inc., or any affiliate thereof, receives any compensation from
the Trust for serving as a trustee or officer of the Trust. The Trust pays each
Trustee 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 also reimburses
expenses incurred by the Trustees in attending such meetings.
Each Fund's eligible Trustees may participate in a nonqualified 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 the Nations Treasury Fund, a fund of Nations Fund, Inc.
The expense for the deferred compensation plan is included in the "Trustees'
fees and expenses" line of the Statements of Operations.
NationsBank of Texas, N.A., acts as custodian for the Funds, and for the year
ended November 30, 1995, earned $224,341 for providing such services. First Data
Investor Services Group, Inc. serves as transfer agent for the Funds' shares.
NationsBank of Texas, N.A. acts as the sub-transfer agent for the Trust A Shares
of the Funds and for the year ended November 30, 1995 earned approximately
$23,300 for providing such services.
Stephens acts as distributor of the Funds' shares. For the year ended November
30, 1995, the Funds were informed that the distributor received $47,563,
representing commissions (sales charges) on sales of Investor A Shares of the
Funds. For the year ended November 30, 1995, the Funds were informed that the
distributor received $358,909, in contingent deferred sales charges from
Investor C and Investor N Shares of the Funds. A substantial portion of these
fees are paid to affiliates of NationsBank.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust has adopted a shareholder servicing and distribution plan ("Investor A
Plan") pursuant to Rule 12b-1 under the 1940 Act for the Investor A Shares of
the Funds. Pursuant to the Investor A Plan, the Funds pay fees directly to the
distributor. Payments by a Fund under the Investor A Plan may not exceed 0.25%,
on an annualized basis, of the average daily net assets of the Fund's Investor A
Shares. Fees paid pursuant to the Investor A Plan are charged as expenses of
Investor A Shares of a Fund as accrued.
The Trust also has adopted a shareholder servicing plan ("Investor A Servicing
Plan") for the Investor A Shares of the Short-Term Income Fund. Pursuant to the
Investor A Servicing Plan, the Short-Term Income Fund may pay for shareholder
services provided by institutions to shareholders of Investor A Shares of the
Fund. Payments by the Short-Term Income Fund under the Investor A Servicing Plan
may not exceed 0.25%, on an annualized basis, of the average daily net assets of
Investor A Shares of the Fund.
The Trust also has adopted distribution plans pursuant to Rule 12b-1 under the
1940 Act with respect to Investor C ("Investor C Plan") and Investor N
("Investor N Plan") Shares of each Fund. Pursuant to the Investor C Plan and the
Investor N Plan, the Funds pay fees directly to the distributor. Payments under
the Investor C Plan and the Investor N Plan are accrued daily and paid monthly
at a rate that will not exceed 0.75%, on an annualized basis, of the average
daily net assets of the Investor C or Investor N Shares, respectively, of a
Fund. Fees paid pursuant to the Investor C Plan and the Investor N Plan are
charged as expenses of Investor C or Investor N Shares, respectively, of a Fund
as accrued.
The Trust also has adopted shareholder servicing plans with respect to Investor
C ("Investor C Servicing Plan") and Investor N ("Investor N Servicing Plan")
Shares of the Funds. Pursuant to the Investor C Servicing Plan and the Investor
N Servicing Plan, the Funds pay for certain shareholder support services that
are provided to the owners of Investor C and Investor N Shares by the servicing
agents that have entered into a shareholder servicing agreement with the Trust.
Payments under the Investor C Servicing Plan and the Investor N Servicing Plan
are accrued daily and paid monthly at a rate that will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the Investor C or Investor
N Shares, respectively, of the Fund. Fees paid pursuant to the Investor C
Servicing Plan and the Investor N Servicing Plan are charged as expenses of
Investor C or Investor N Shares, respectively, of a Fund as accrued.
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank.
49
<PAGE> 52
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the year ended November 30, 1995, the Funds incurred the following amounts
pursuant to the above plans:
<TABLE>
<CAPTION>
FEES PAID PURSUANT TO:
INVESTOR A INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
PLAN SERVICING PLAN PLAN SERVICING PLAN PLAN SERVICING PLAN
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Short-Intermediate Government
Fund............................ $ 134,526 N/A $ 70,814 $ -- $ 41,183 $ 29,417
Short-Term Income Fund............ -- $5,271 24,650 -- 11,137 27,844
Diversified Income Fund........... 29,942 N/A 22,769 -- 359,122 179,561
Strategic Fixed Income Fund....... 4,577 N/A 349 -- 9,023 5,625
</TABLE>
For the year ended November 30, 1995, the effective rates paid by the Funds, as
a percentage of average daily net assets, under the shareholder servicing and
distribution plans were as follows:
<TABLE>
<CAPTION>
INVESTOR A INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
PLAN SERVICING PLAN PLAN SERVICING PLAN PLAN SERVICING PLAN
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Short-Intermediate Government
Fund............................ 0.20% N/A 0.50% -- 0.35% 0.25%
Short-Term Income Fund............ -- 0.20% 0.35% -- 0.10% 0.25%
Diversified Income Fund........... 0.25% N/A 0.75% -- 0.50% 0.25%
Strategic Fixed Income Fund....... 0.20% N/A 0.50% -- 0.40% 0.25%
</TABLE>
4. PURCHASES AND SALES OF SECURITIES.
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. government securities and short-term investments, for the year ended
November 30, 1995, was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------------------------------
<S> <C> <C>
Short-Intermediate Government Fund................. $ -- $ 5,860,297
Short-Term Income Fund............................. 150,175,304 177,067,051
Diversified Income Fund............................ 35,072,554 15,137,881
Strategic Fixed Income Fund........................ 244,608,418 262,517,358
</TABLE>
The aggregate cost of purchases and proceeds from sales of long-term U.S.
government securities for the year ended November 30, 1995, was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------------------------------
<S> <C> <C>
Short-Intermediate Government Fund................. $1,750,359,779 $1,783,940,806
Short-Term Income Fund............................. 261,113,547 255,766,944
Diversified Income Fund............................ 138,103,732 93,968,990
Strategic Fixed Income Fund........................ 1,243,913,807 1,202,273,541
</TABLE>
At November 30, 1995, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes was as follows:
<TABLE>
<CAPTION>
TAX
TAX BASIS BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
----------------------------
<S> <C> <C>
Short-Intermediate Government Fund......................... $ 5,248,179 $334,635
Short-Term Income Fund..................................... 2,768,752 133,613
Diversified Income Fund.................................... 7,447,255 651,587
Strategic Fixed Income Fund................................ 33,147,513 189,539
</TABLE>
50
<PAGE> 53
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During the year ended November 30, 1995, activity in written options for the
Strategic Fixed Income Fund was as follows:
<TABLE>
<CAPTION>
NUMBER
OF CONTRACTS PREMIUM
--------------------------------
<S> <C> <C>
Options beginning of year................................. $ --
Options written........................................... 1,434 1,253,064
Options closed............................................ (1,434) (1,253,064)
------------ -----------
Options outstanding at November 30, 1995.................. 0 0
--------- -----------
</TABLE>
Information regarding dollar roll transactions by the Funds is as follows:
<TABLE>
<CAPTION>
AVERAGE AVERAGE
MAXIMUM AVERAGE AMOUNT FUND SHARES AMOUNT
OUTSTANDING OUTSTANDING FEE INCOME OUTSTANDING OUTSTANDING
DURING THE PERIOD DURING THE PERIOD EARNED DURING THE PERIOD PER SHARE
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Short-Intermediate Government
Fund............................. $95,044,763 $ 8,390,886 $239,291 126,736,785 $ 0.07
Diversified Income Fund............ 8,670,870 189,084 7,955 11,242,930 0.02
</TABLE>
The average amount outstanding during the period was calculated by summing the
borrowings at the end of each day and dividing the sum by the number of days in
the year ended November 30, 1995.
5. SHARES OF BENEFICIAL INTEREST.
As of November 30, 1995, an unlimited number of shares without par value were
authorized for the Trust. 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.
6. ORGANIZATION COSTS.
The Funds bear all costs in connection with their organization, including the
fees and expenses of registering and qualifying their shares for distribution
under Federal and state securities regulations. All such costs are being
amortized on the straight-line method over a period of five years from
commencement of operations. In the event that any of the shares issued by the
Funds to their sponsor prior to the commencement of the Funds' public offering
("initial shares") are redeemed during such amortization period by any holder
thereof, the Funds will be reimbursed by the holder for any unamortized
organization costs in the same proportion as the number of initial shares
redeemed bears to the number of initial shares outstanding at the time of
redemption.
7. LINE OF CREDIT.
The Trust and Nations Fund, Inc. participate in a $25 million line of credit
provided by Mellon Bank, N.A. (the "Bank") under a Line of Credit Agreement (the
"Agreement") dated March 17, 1994. Advances under the Agreement are taken
primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Under the Agreement, each Fund may borrow up to the lesser of $10
million or 5% of its net assets. Interest on borrowings is payable either at the
higher of the Bank's Money Market Rate or the London Interbank Offered Rate
(LIBOR) plus 0.25% on an annualized basis. The Funds and the other affiliated
entities are charged an aggregate commitment fee of 0.25% per annum on the
amount of the line of credit. Each Fund is liable only for that portion of any
commitment with respect to such Fund and shall not be liable for the portion of
the commitment fee of any other fund. The Agreement requires, among other
things, that each participating Fund maintain a ratio of net assets (not
including funds borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement of no less than 4 to 1.
51
<PAGE> 54
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At November 30, 1995, there were no loans outstanding under this Agreement.
During the year ended November 30, 1995, the following Funds had borrowings
under this Agreement:
<TABLE>
<CAPTION>
MAXIMUM AVERAGE AVERAGE INTEREST
AMOUNT AMOUNT AVERAGE DEBT RATE INTEREST
FUND OUTSTANDING OUTSTANDING SHARES PER SHARE HIGH LOW EXPENSE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Strategic Fixed Income Fund....... $ 1,200,000 $ 3,288 65,160,720 $ 0.00(a) 5.95% 5.95% $ 198
Short-Term Income Fund............ 700,000 2,192 19,444,212 0.00(a) 6.20 6.00 171
- ---------------
(a) Amount represents less than $0.01 per share.
</TABLE>
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the year ended
November 30, 1995.
8. CAPITAL LOSS CARRYFORWARD.
At November 30, 1995, the following Funds had available for Federal income tax
purposes the following unused capital losses:
<TABLE>
<CAPTION>
LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED
FUND EXPIRING IN 2001 EXPIRING IN 2002 EXPIRING IN 2003
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short-Intermediate Government
Fund.............................. $ -- $ 16,398,415 $ --
Short-Term Income................... -- 7,063,183 650,652
Diversified Income Fund............. -- 588,690 --
Strategic Fixed Income Fund......... 3,663,461 10,094,571 --
</TABLE>
In connection with the acquiring of Adjustable Rate Government Fund by
Short-Intermediate Government Fund and Managed Bond Fund by Strategic Fixed
Income Fund capital loss carryforward of $2,761,731 and $4,599,700 were acquired
of which $2,675,296 and $936,239 have been used as of November 30, 1995,
respectively.
9. REORGANIZATION.
The Acquiring Fund acquired the assets and certain liabilities of the Acquired
Fund, 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/(depreciation) included in the Acquired Fund's
total net assets at the acquisition date are as follows:
<TABLE>
<CAPTION>
SHARES VALUE OF TOTAL NET TOTAL NET
ISSUED BY SHARES ISSUED ASSETS OF ASSETS OF
ACQUIRING BY ACQUIRING ACQUIRED ACQUIRING
ACQUIRING FUND ACQUIRED FUND DATE FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Short-Intermediate Adjustable Rate
Government Fund Government 9,091,328 $ 37,001,707 $ 37,001,707 $493,002,053
Fund 08/18/1995
Strategic Fixed Managed Bond
Income Fund Fund 09/22/1995 12,746,830 $ 127,527,088 $127,527,088 $671,853,768
Strategic Fixed The Capitol
Income Fund Mutual Funds 2,136,871 $ 20,663,537 $ 20,663,537 $553,906,019
Fixed Income
Portfolio 04/29/1994
<CAPTION>
TOTAL NET ACQUIRED
ACQUIRING UNREALIZED
FUND AFTER APPRECIATION/
ACQUIRING FUND ACQUISITION (DEPRECIATION)
- ----------------------------------------------------
<S> <C> <C>
Short-Intermediate
Government Fund $530,016,851 $ (255,036)
Strategic Fixed
Income Fund $799,400,337 $ 4,348,554
Strategic Fixed
Income Fund $574,569,556 $ 311,904
</TABLE>
10. SUBSEQUENT EVENT.
Effective January 1, 1996, NationsBanc Advisors, Inc. will become the investment
advisor to the Trust. Also effective January 1, 1996, TradeStreet Investment
Associates, Inc. will become the sub-advisor to the Trust. Both NationsBanc
Advisors, Inc. and TradeStreet Investment Associates, Inc. are indirect
wholly-owned subsidiaries of NationsBank. There will be no change in advisory
fees paid by the Trust.
52
<PAGE> 55
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUND TRUST
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Nations Short-Intermediate
Government Fund, Nations Short-Term Income Fund, Nations Diversified Income Fund
and Nations Strategic Fixed Income Fund (each a Portfolio of Nations Fund Trust,
hereafter referred to as the "Trust") at November 30, 1995 and the results of
each of their operations, the changes in each of their net assets and the
financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 1995 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
January 19, 1996
53
<PAGE> 56
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
MEETING OF SHAREHOLDERS
On August 11, 1995, a Special Meeting of Shareholders of Nations Adjustable Rate
Government Fund was held. The purpose of the meeting was to approve the merger
of Nations Adjustable Rate Government Fund into Nations Short-Intermediate
Government Fund. At the meeting 3,849,803 votes were cast in favor of the
proposal, 8,438 votes were cast against the proposal and there were 47,635
abstentions.
On September 19, 1995, a Special Meeting of Shareholders of Nations Managed Bond
Fund was held. The purpose of the meeting was to approve the merger of Nations
Managed Bond Fund into Nations Strategic Fixed Income Fund. At the meeting
13,355,482 votes were cast in favor of the proposal, 180,414 votes were cast
against the proposal and there were 15,151 abstentions.
54
<PAGE> 57
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 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
<PAGE> 58
This report is submitted for the general information of shareholders of Nations
Fund Trust. This material must be accompanied or preceded by a Nations Fund
prospectus.
<PAGE> 59
[NATIONS FUND LOGO]
PO Box 34602
Charlotte, NC 28234-4602
Toll Free 1-800-982-2271
-------------
BULK RATE
U.S. POSTAGE
PAID
BOSTON, MA
PERMIT NO.
54201
-------------
<PAGE> 60
[NATIONS FUND LOGO]
A N N U A L
NATIONS GOVERNMENT
For the Year Ended November 30, 1995
MONEY MARKET FUND
R E P O R T
NATIONS TAX EXEMPT FUND
<PAGE> 61
<TABLE>
<S> <C>
NOT
FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, 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: NATIONSBANK, N.A. ("NATIONSBANK")
<PAGE> 62
NATIONS FUND TRUST
DEAR SHAREHOLDER:
We are pleased to present the annual report for Nations Fund Trust for the
fiscal year ended November 30, 1995. During this period of bullish growth across
many financial markets, assets of the Nations Fund family of mutual funds
surpassed the $17 billion level.
Overall, 1995 marked a period that many investors will look back upon with great
fondness in the years to come. It offered the potential for investors to enjoy
significant returns in an environment marked by subdued volatility. As we look
forward to the opportunities 1996 presents, it is appropriate to reflect upon
the conclusions that can be drawn from market performance over the past twelve
months.
FINANCIAL MARKETS SUMMARY
The past year produced ideal market conditions for U.S. financial assets.
Historians might well cite 1995 as the definitive case study of a bull market.
Indeed, four factors coincided to make 1995 memorable. The U.S. economy grew at
a moderate pace. Inflation slowed more than most observers anticipated. Both the
executive and legislative branches of the U.S. government embraced a commitment
to reduce the federal deficit and U.S. corporations continued to produce strong
profitability. As a result, those who owned financial assets enjoyed strong
performance without having this performance eroded or undermined by the threats
of an overheated economy, creeping inflation or unbridled federal spending.
How could U.S. corporations produce strong profits without the pricing power of
inflation, the tail wind of economic strength or the catalyst of government
spending? Clearly, productivity and restructuring played an important role as
U.S. companies expanded margins. Moreover, profits earned abroad helped to
expand earnings for many companies. And the technology sector of the economy
played an important role as computers and telecommunications helped reshape many
companies.
On the international front, foreign stock markets lagged behind the U.S. equity
bull market. Foreign bond markets, with the exception of Japan, performed in
line with the U.S. bond market, providing double digit returns for bond
investors. A closer look at stock market facts actually show that foreign market
returns for 1995 were in line with their 1994 returns when foreign markets
outperformed the U.S. market by a sizable margin. The generally low correlation
between the U.S. and foreign stock markets continues to provide opportunities
for the portfolio diversification desired by many prudent investors. It is the
primary reason that diversifying overseas has become an important asset
allocation decision today.
The year also produced a record number of strategic mergers both domestically
and internationally. In numerous industries, companies forged ties in order to
build long-term profitability. Among others, Banking, Broadcasting, Basic
Industry, Software and Health Care experienced strong deal activity. Unlike
prior merger cycles, most of these deals were not merely the result of financial
engineering.
Overall, 1995 was an important reminder regarding the value of long-term
investing. As we entered 1995, investors might have been discouraged by the
meager U.S. returns of the prior year. Moreover, some investors might have been
tempted to take profits early in the year as the U.S. rally unfolded. The
winners in 1995 appear to have been those individuals and institutions with the
patience and vision for the long haul.
1
<PAGE> 63
FINANCIAL OUTLOOK
Investors can reap significant rewards when long-term investment discipline
intersects with ideal market conditions. This was the story for 1995.
But what about 1996? Must a bear market necessarily follow the bull market of
1995? Can interest rates continue to fall (and bond prices rise) and stocks
continue to rally at a torrid pace? We do not think that a strong bull market
necessarily must be followed by a big market sell-off. As long as the financial
environment remains favorable, prices can continue to appreciate. However, we do
not anticipate the pace of appreciation to be nearly as rapid or steady.
What about investing overseas? Should we expect a reversal of last year with
foreign stock markets outperforming U.S. stock markets in 1996? Over the long
term, there is a close correlation between real economic growth rates achieved
by a country and the performance of that country's stock market. Many of the
world's fastest growing economies are located in the Pacific Rim and it is here
where we see some of the most exciting opportunities for 1996 and beyond. We
also see opportunities in Japan, the world's largest economy and stock market
outside the United States, as it recovers from its recent problems.
Fundamentally, the fast growing Pacific Rim markets should outperform other
world markets, while the more developed countries will be reacting to the same
investment environment that exists in the United States.
While moderate economic conditions, low inflation and fiscal restraint are
likely to persist in 1996, corporate profitability is likely to slow. As a
result, we should not expect to see a market rally that is as broad as 1995, and
we should expect to see periodic corrections in both stocks and bonds. However,
even without strong earnings as an ally, the general market environment should
be positive enough to provide the potential for reasonable returns for investors
in the new year. Of course, it is not possible to predict market activity with
any certainty.
Thank you for placing your confidence in Nations Fund. We hope the information
contained in this report proves valuable as you pursue your investment goals.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman
of the Board
November 30, 1995
2
<PAGE> 64
We are pleased to present the following general investment strategies that
investors may want to consider. Specific investment decisions should always be
based on an analysis of your individual financial goals, tolerance for risk, and
investment timeframe.
PREPARE FOR 1996 WITH A
QUICK FINANCIAL REVIEW
- --------------------------------------------------------------------------------
Nineteen hundred ninety-five was an exciting year for investors. The Dow Jones
Industrial Average (DJIA) surged past the 5000 mark, breaking record after
record along the way. The National Association of Securities Dealers Automated
Quotations system (NASDAQ), Standard & Poor's Corporation 500 Composite Stock
Price Index (S&P 500) and New York Stock Exchange (NYSE) indices also reached
record levels. During this same period, falling interest rates resulted in a
bond rally, driving bond prices up and bond yields down.
DO CHANGES IN MARKET CONDITIONS WARRANT CHANGES IN YOUR
INVESTMENT STRATEGY?
Not necessarily. Short-term market performance should mean very little if your
investment goals are long-term in nature. For example, before leaping to take
profits when the stock market reaches new highs, as a long-term investor, you
should always consider why you invested in stocks in the first place.
If you're seeking long-term gains, a dramatic shift in your strategy today may
lead to difficult decisions later regarding when to get back into the stock
market -- something that is very difficult to time. That's why most financial
advisers encourage a proactive, rather than reactive, approach to investing. A
proactive approach involves careful planning, goal setting and a long-term
outlook.
As you begin to put your financial affairs in order for the new year, consider
the following:
HAVE YOUR INVESTMENT OBJECTIVES CHANGED?
A new job, retirement, the birth of a child or loss of a loved one are among the
many lifestyle changes that can have a significant impact on your finances.
Perhaps you need to establish a college fund for a child or grandchild. Or, as
you're approaching retirement, you're seeking a more conservative investment
strategy geared toward asset preservation. These are valid reasons to reassess
your investment goals and objectives as well as how your assets are allocated
among the various investment classes.
ARE YOUR INVESTMENT ASSETS PROPERLY ALLOCATED?
Maintaining a portfolio that is adequately diversified among the primary asset
classes is an important investment principle. In fact, according to an
independent study of 82 pension funds over a 10-year period, over 91% of an
investment portfolio's return is driven by asset allocation.*
CAN YOU REDUCE YOUR TAXABLE INCOME?
An inheritance, a significant salary increase or relocating to another state can
impact your tax situation. If you need to reduce the amount of your income that
is subject to taxes, consider tax-exempt investments. Investing in municipal
bond funds may be one effective choice because the income you earn on municipal
bond funds is generally exempt from federal income taxes.** Also state-specific
municipal bond funds seek income that is exempt from both federal, state and
local income taxes.
- ---------------
* Source: Financial Analysts Journal, May/June 1991: Determinants Of Portfolio
Performance II: An Update, by Gary Brinson, Brian Singer and Gilbert Beebower.
** Income derived from municipal bond funds may be subject to state and local
taxes and, for certain investors, may be subject to the federal Alternative
Minimum Tax (AMT).
3
<PAGE> 65
ARE YOUR RETIREMENT PLANS ON TRACK?
Many financial experts agree that you will need 80% of your pre-retirement
income to maintain a comfortable lifestyle during your retirement years.
However, the Social Security Administration reports that many Americans save
only one-third of what they will need. While Social Security benefits are an
important component of retirement assets, most of us realize that these benefits
are not likely to be enough. Even combined with your company pension plan, you
may still fall short. Greater emphasis will continue to be placed on personal
investments to complete the retirement picture.
Proper asset allocation, one of the strongest drivers of portfolio return, is
particularly important where retirement investments are concerned. It's
important to determine if your retirement assets are properly allocated to
provide the growth you need without taking on undue risk.
WHAT'S RIGHT FOR YOU?
Before making any changes in your investment strategy, take time to understand
the relationship between investment risk and investment reward. Generally, the
greater the potential for investment reward, such as growth from stock
investments, the greater the risk. Consider whether your timeframe is adequate
to compensate for potential market downturns.
In determining the level of investment risk you are comfortable with, consider
the following:
- - STOCKS ARE LONG-TERM INVESTMENT VEHICLES. Since stocks offer the strongest
potential for growth among the asset classes, stock market investments are
generally suitable for pursuing long-term investment goals. Investors pursuing
short-term investment goals may wish to consider shifting assets toward
investments with greater price stability.
- - BOND INVESTMENTS OFFER GREATER STABILITY THAN STOCKS, BUT ARE NOT WITHOUT
RISK. The types of risk a bond investor will incur include credit risk and
interest-rate risk, both of which can affect a bond's price and yield. In
addition, while bonds generally are not as volatile as stocks, they also do
not offer the growth potential found in stock market investments. A portfolio
that contains only bond investments may hurt your potential to outpace
inflation over time.
- - INTERNATIONAL STOCKS AND BONDS OFFER GREATER DIVERSIFICATION. Although
international investing presents additional risks such as political, currency
and liquidity risk, the diversification benefits can increase the potential
for higher overall portfolio returns and lower portfolio risk.
- - AVOID PLACING ALL OF YOUR EGGS IN ONE BASKET. Spread your investment dollars
among stock, bond and money market investments to help reduce the risk and
impact of principal loss should a particular investment perform poorly.
4
<PAGE> 66
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 your financial
objectives or market conditions 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 NationsBank, N.A. The family was
designed to accommodate a wide variety of investment objectives across the
risk/reward spectrum.
[Nations Fund Family 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 1-(800)
982-2271.
- ---------------
* The Nations Fund family also includes Nations Equity Index Fund, which seeks
to match the performance of the S&P 500 before fees and expenses.
5
<PAGE> 67
NATIONS FUND TRUST
Nations Government Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 99.1%
FEDERAL FARM CREDIT BANK -- 8.8%
$ 5,000,000 Discount note.......... 12/01/95 $ 5,000,000
5,000,000 Discount note.......... 12/07/95 4,995,358
7,000,000 Discount note.......... 12/21/95 6,978,339
5,000,000 Discount note.......... 01/05/96 4,972,681
2,000,000 Discount note.......... 01/25/96 1,982,981
8,000,000 Discount note.......... 02/08/96 7,917,507
5,000,000 Discount note.......... 05/30/96 4,861,485
------------
36,708,351
------------
FEDERAL FARM CREDIT BANK
FLOATING RATE NOTES -- 12.0%
5,000,000 5.830%+................ 12/01/95+++ 5,000,628
10,000,000 5.950%+................ 12/01/95+++ 10,000,000
20,000,000 5.950%+................ 12/01/95+++ 20,000,000
15,000,000 5.670%+................ 12/07/95+++ 14,997,018
------------
49,997,646
------------
FEDERAL FARM CREDIT BANK NOTE -- 1.9%
8,000,000 5.750%................. 08/01/96 7,996,122
------------
FEDERAL HOME LOAN BANK -- 30.0%
5,000,000 Discount note.......... 12/04/95 4,997,662
8,000,000 Discount note.......... 12/15/95 7,982,671
8,000,000 Discount note.......... 12/18/95 7,978,580
6,325,000 Discount note.......... 12/26/95 6,300,710
8,000,000 Discount note.......... 01/04/96 7,957,689
8,000,000 Discount note.......... 01/09/96 7,951,293
3,230,000 Discount note.......... 01/17/96 3,206,385
10,670,000 Discount note.......... 01/18/96 10,592,642
4,455,000 Discount note.......... 01/23/96 4,418,796
3,000,000 Discount note.......... 01/29/96 2,972,417
5,000,000 Discount note.......... 02/01/96 4,952,122
5,000,000 Discount note.......... 02/02/96 4,951,350
5,000,000 Discount note.......... 02/13/96 4,943,164
5,785,000 Discount note.......... 02/14/96 5,717,749
5,000,000 Discount note.......... 02/15/96 4,941,100
5,000,000 Discount note.......... 02/26/96 4,933,058
5,000,000 Discount note.......... 03/01/96 4,930,233
8,000,000 Discount note.......... 03/18/96 7,869,200
3,300,000 Discount note.......... 03/25/96 3,242,759
5,000,000 Discount note.......... 04/29/96 4,886,250
10,000,000 Discount note.......... 05/03/96 9,764,723
------------
125,490,553
------------
FEDERAL HOME LOAN BANK
FLOATING RATE NOTES -- 12.4%
20,000,000 5.700%+................ 12/01/95+++ 19,995,328
25,000,000 5.740%+................ 12/01/95+++ 24,996,712
7,000,000 4.911%++............... 12/29/95+++ 7,000,000
------------
51,992,040
------------
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- (CONTINUED)
FEDERAL HOME LOAN BANK NOTES -- 16.8%
$ 10,000,000 6.010%................. 05/15/96 $ 9,997,052
10,000,000 5.705%................. 06/10/96 9,984,597
15,000,000 6.000%................. 08/07/96 15,000,000
15,000,000 6.000%................. 08/16/96 15,000,000
10,000,000 6.100%................. 09/05/96 10,000,000
10,000,000 5.870%................. 10/25/96 10,000,000
------------
69,981,649
------------
STUDENT LOAN MARKETING ASSOCIATION
FLOATING RATE NOTES -- 15.5%
10,000,000 5.630%+................ 12/05/95+++ 10,000,000
25,000,000 5.650%+................ 12/05/95+++ 25,000,000
14,800,000 5.670%+................ 12/05/95+++ 14,800,000
15,000,000 5.780%+................ 12/05/95+++ 15,000,000
------------
64,800,000
------------
TENNESSEE VALLEY AUTHORITY -- 1.7%
7,000,000 Discount note.......... 02/01/96 6,933,093
------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $413,899,454).... 413,899,454
------------
<CAPTION>
SHARES
- -----------
<S> <C> <C> <C>
MONEY MARKET FUND -- 1.0% (Cost $4,290,000)
4,290,000 Dreyfus Treasury Prime
Cash Management
Fund................. 4,290,000
------------
TOTAL INVESTMENTS
(Cost $418,189,454*)................ 100.1% 418,189,454
OTHER ASSETS AND
LIABILITIES (NET)................... (0.1) (502,064)
---- --------------
NET ASSETS............................ 100.0% $ 417,687,390
---- ------------
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate security. The interest rate shown reflects the rate in effect
at November 30, 1995.
++ 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> 68
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 99.1%
ALABAMA -- 3.7%
$ 6,500,000 Alabama (State of), Housing
Finance Authority, Multi-family
Housing, (Ski Lodge III),
Series A, AmSouth Bank N.A.,
Birmingham LOC,
3.700% 03/01/15+............... $ 6,500,000
1,725,000 Birmingham, Alabama, Industrial
Development Board, (Avondale --
Phase III), AmSouth Bank N.A.,
Birmingham LOC,
4.100% 06/01/00+............... 1,725,000
6,400,000 Birmingham, Alabama, Medical
Clinic Board Revenue,
(University of Alabama Health
Services), Morgan Guaranty
Trust Company, New York LOC,
3.900% 12/01/26++.............. 6,400,000
1,300,000 Fort Payne, Alabama, Industrial
Development Board, Industrial
Development Revenue, (Brookwood
Expansion Project), AmSouth
Bank N.A., Birmingham LOC,
3.950% 12/01/97+............... 1,300,000
4,005,000 Gadsden, Alabama, Industrial
Development Board, Industrial
Development Revenue, (Keystone
Foods Corporation), AMT, Bank
of Scotland LOC,
4.000% 05/01/04+............... 4,005,000
5,000,000 Irondale, Alabama, Industrial
Development Board, (Commerce
Square Project), AMT, AmSouth
Bank N.A., Birmingham LOC,
4.000% 04/01/96+............... 5,000,000
2,100,000 McIntosh, Alabama, Industrial
Development Board, Solid Waste
Disposal Revenue, (Ciba-Geigy
Corporation Project), AMT,
Union Bank of Switzerland LOC,
3.800% 07/01/04+............... 2,100,000
4,000,000 Mobile, Alabama, Industrial
Development Board, (IB
Chemical), Industrial Bank of
Japan LOC,
4.000% 12/01/97+............... 4,000,000
2,130,000 Montgomery, Alabama, Industrial
Development Board, (Industrial
Partners Project), Wachovia
Bank of Georgia LOC,
3.700% 01/01/07+............... 2,130,000
7,000,000 Montgomery, Alabama, Special Care
Facilities Finance Authority,
(Baptist Medical Center),
Series A, AmSouth Bank N.A.,
Birmingham LOC,
3.650% 08/01/20+............... 7,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ALABAMA -- (CONTINUED)
$ 2,650,000 Phenix City, Alabama, Industrial
Development Board, (Georgia
Kraft Project), Canadian
Imperial Bank of Commerce LOC,
3.900% 12/01/15++.............. $2,650,000
--------------
42,810,000
--------------
ALASKA -- 0.4%
5,000,000 Valdez, Alaska, Marine Term
Revenue, (Arco Transportation
Project), Series B, (Atlantic
Richfield Guaranteed),
3.750% 05/01/31+............... 5,000,000
--------------
ARIZONA -- 2.6%
Apache (County of), Arizona,
Industrial Development
Authority, PCR, (Tucson
Electric Power):
5,500,000 Series 83A, Barclays Bank LOC,
3.650% 12/15/18+............... 5,500,000
10,000,000 Series A, Chemical Bank LOC,
3.650% 06/15/20+............... 10,000,000
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,
3.850% 06/01/34+............... 4,200,000
1,000,000 Pinal (County of), Arizona,
Industrial Development
Authority, PCR, (Magma Copper
Company Project), Banque
Nationale
de Paris LOC,
3.700% 12/01/11+............... 1,000,000
10,000,000 Salt River, Arizona, Agriculture
Improvement and Development
District, (SBPA, (Union Bank of
Switzerland)),
3.850% 12/15/95#............... 10,000,000
--------------
30,700,000
--------------
ARKANSAS -- 0.5%
6,300,000 Little Rock, Arkansas,
Metrocenter Improvement
District No. 1 Revenue, (Little
Rock Newspaper Inc.), Bank of
New York LOC,
3.900% 12/01/25++.............. 6,300,000
--------------
CALIFORNIA -- 4.4%
5,000,000 Contra Costa (County of),
California, Tax and Revenue
Anticipation Notes, GO,
4.500% 07/03/96................ 5,024,069
5,000,000 Kern (County of), California, Tax
and Revenue Anticipation Notes,
4.500% 07/02/96................ 5,016,299
6,000,000 Los Angeles, California, Regional
Airports, (Los Angeles
International Airport), Societe
Generale LOC,
3.850% 12/01/25++.............. 6,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 69
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
CALIFORNIA -- (CONTINUED)
$ 7,500,000 Los Angeles, California, Unified
School District, Tax and
Revenue Anticipation Notes,
4.500% 07/03/96................ $ 7,533,978
4,700,000 Orange (County of), California,
Tax and Revenue Anticipation
Notes, Series A,
4.500% 06/30/96................ 4,700,000
5,000,000 San Bernardino (County of),
California, Tax and Revenue
Anticipation Notes, Toronto
Dominion Bank and Bank of Nova
Scotia LOC,
4.500% 07/05/96................ 5,015,679
10,000,000 San Diego, California, Tax
Anticipation Notes, Series A,
4.750% 07/03/96................ 10,048,016
3,400,000 San Luis Obispo (County of),
California, Tax and Revenue
Anticipation Notes,
4.750% 06/27/96................ 3,414,949
5,000,000 Tuolumne (County of), California,
Board of Education, Tax and
Revenue Anticipation Notes, GO,
4.500% 06/28/96................ 5,015,180
--------------
51,768,170
--------------
COLORADO -- 1.7%
3,000,000 Colorado (State of), Housing
Finance Authority, Multi-family
Housing Revenue, (Central Park
Convention Center), Chemical
Bank LOC,
3.750% 05/01/97+............... 3,000,000
Denver (City & County of),
Colorado, Airport Revenue, AMT:
3,500,000 Series F, Bank of Montreal LOC,
4.050% 11/15/25+............... 3,500,000
5,000,000 Series G, Credit Locale de
France LOC,
4.050% 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 LOC,
3.700% 12/01/24+............... 2,205,000
1,200,000 Larimar (County of), Colorado,
Industrial Development Revenue,
(Ultimate Support Systems
Project), Series A, Bank One,
Denver N.A. LOC,
3.750% 06/01/10+............... 1,200,000
3,100,000 Northglenn, Colorado, Industrial
Development Revenue, (Castle
Gardens Retirement), Swiss Bank
LOC,
3.650% 01/01/09+............... 3,100,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
COLORADO -- (CONTINUED)
$ 2,300,000 Pitkin (County of), Colorado,
Industrial Development Revenue,
(Aspen Skiing Company Project),
Series A, First National Bank
of Chicago LOC,
3.850% 04/01/16++.............. $ 2,300,000
--------------
20,305,000
--------------
CONNECTICUT -- 0.3%
3,000,000 Connecticut (State of), Economic
Recovery Notes, Series B,
(SBPA, (Canadian Imperial Bank
of Commerce; National
Westminster Bank Plc; and
Industrial Bank of Japan)),
4.000% 06/01/96+............... 3,000,000
--------------
DELAWARE -- 2.1%
24,000,000 Delaware (State of), Educational
Development Authority Revenue,
Hospital Billing, Series C,
(MBIA Insured), (SBPA, (Morgan
Stanley Group, Inc.)),
3.750% 12/01/15+............... 24,000,000
--------------
DISTRICT OF COLUMBIA -- 0.3%
2,900,000 District of Columbia, Hospital
Revenue, (Columbia Women's
Hospital), Series A, Mitsubishi
Bank Ltd. LOC,
3.900% 07/01/20+............... 2,900,000
--------------
FLORIDA -- 6.9%
1,000,000 Alachua (County of), Florida,
Health Facilities Finance
Authority Revenue, (Retirement
Village), Kredietbank N.V. LOC,
3.600% 01/01/21+............... 1,000,000
10,810,000 Broward (County of), Florida,
Housing Finance Authority,
Multi-family Housing Revenue,
(Fishermans Project), AMT,
Continental Casualty Surety
Bond,
3.800% 11/01/07+............... 10,810,000
3,000,000 Clay (County of), Florida,
Industrial Development
Authority, (Carlisle
Corporation Project), AMT,
Trust Company Bank LOC,
3.900% 08/01/04+............... 3,000,000
Dade (County of), Florida,
Industrial Development
Authority:
2,300,000 (Dolphins Stadium Project),
Series C, Citibank LOC,
4.000% 01/01/16+............... 2,300,000
3,000,000 (Phase II Furniture Corporation
Project), AMT, Sun Bank N.A.
LOC,
3.900% 11/01/14+............... 3,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 70
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 7,200,000 Dade (County of), Florida, Solid
Waste Industrial Development
Revenue, (Montenay-Dade Ltd.
Project), Series A, AMT, Banque
Paribas LOC,
3.850% 12/01/13+............... $ 7,200,000
Florida (State of), Housing
Finance Agency, Multi-family
Housing Revenue:
2,400,000 (Clear Lake Project), Series D,
Continental Casualty Surety
Bond,
3.800% 01/01/34+............... 2,400,000
5,000,000 (Lakeside Project), Series B,
Bankers Trust Company LOC,
3.775% 08/01/06+............... 5,000,000
2,000,000 Hillsborough (County of),
Florida, Industrial Development
Authority, Industrial
Development Revenue, (Seaboard
Tampa Project), Barclays Bank
Plc LOC,
3.700% 12/01/16+............... 2,000,000
6,705,000 Jacksonville, Florida, Electric
Authority, Series SGA 17,
(SBPA, (Societe Generale)),
3.750% 10/01/20+............... 6,705,000
4,515,000 Jacksonville, Florida, Housing
Finance Authority Revenue,
(River Garden Project), Banque
Paribas LOC,
4.000% 02/01/18++.............. 4,515,000
2,600,000 Key West, Florida, Community
Redevelopment Agency Revenue,
(Pier House Joint Venture), PNC
Bank, Ohio LOC,
3.950% 01/01/98+............... 2,600,000
10,385,000 Orange (County of), Florida,
Health Facilities Authority
Revenue, (SHCC Services Inc.
Project), Sun Bank N.A. LOC,
3.650% 12/01/23+............... 10,385,000
3,500,000 St. Lucie (County of), Florida,
Industrial Development
Authority, (Florida
Convalescent Centers Project),
Series A, Toronto Dominion Bank
LOC,
3.800% 01/01/11+++............. 3,500,000
St. Lucie (County of), Florida,
PCR, (Florida Power and Light
Company):
8,025,000 4.050% 12/15/95#............... 8,025,000
5,000,000 4.050% 12/15/95#............... 5,000,000
2,800,000 Volusia (County of), Florida,
Industrial Development
Authority, Water and Sewer
Revenue, (Southern States
Utilities Project), AMT, Sun
Bank N.A. LOC,
3.900% 06/01/14+............... 2,800,000
--------------
80,240,000
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- 6.2%
$10,000,000 Albany-Dougherty, Georgia,
Payroll Development Authority,
PCR, (Philip Morris Companies
Inc. Project),
3.750% 10/01/05+............... $ 10,000,000
Clayton (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue:
3,615,000 (Chateau Forest Apartments
Project), Series E, Barclays
Bank Plc LOC,
3.600% 01/01/21+............... 3,615,000
1,820,000 (Rolling Hills Apartments
Project), AmSouth Bank N.A.,
Birmingham LOC,
3.950% 06/15/17+............... 1,820,000
3,900,000 Cobb (County of), Georgia,
Residential Care Facilities for
the Elderly Authority, (North
Georgia Presbyterian Homes,
Inc. Project), Trust Company
Bank LOC,
3.750% 08/01/18+............... 3,900,000
4,800,000 College Park, Georgia, Industrial
Development Authority,
Industrial Development Revenue,
(Marriott Corporation Project),
Bank of Nova Scotia LOC,
4.000% 08/01/15++.............. 4,800,000
3,000,000 Columbia (County of), Georgia,
Residential Care Facilities for
the Elderly Authority, (Augusta
Residential Center on Aging),
Trust Company Bank LOC,
3.750% 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,
4.050% 02/01/05+............... 2,250,000
3,940,000 Columbus, Georgia, Industrial
Development Revenue, (Parisian
Inc. Project), Columbus Bank &
Trust Company LOC,
4.050% 04/01/07+............... 3,940,000
5,000,000 Dekalb (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue, (Terrace Club
Project), Series B, South Trust
Bank LOC,
3.950% 11/01/15+............... 5,000,000
3,890,000 Georgia (State of), GO, Series A,
5.850% 03/01/96................ 3,903,057
3,800,000 Glynn-Brunswick Memorial Hospital
Authority, Georgia, Revenue
Anticipation Certificates,
(Georgia Regional Project),
Series A, Trust Company Bank
LOC,
3.750% 08/01/09+............... 3,800,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 71
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 3,600,000 Greene (County of), Georgia,
Industrial Development
Authority Revenue,
(Chipman-Union Inc. Project),
Series A, AMT, Trust Company
Bank LOC,
3.900% 03/01/05+............... $ 3,600,000
1,800,000 Hapeville, Georgia, Industrial
Development Authority Revenue,
(Hapeville Hotel Ltd. Project),
Swiss Bank LOC,
3.900% 11/01/15++.............. 1,800,000
3,000,000 Henry (County of), Georgia,
Development Authority Revenue,
(Georgia Pacific Corporation
Project), Trust Company
Bank LOC,
3.750% 05/01/04+............... 3,000,000
1,810,000 Macon-Bibb (County of), Georgia,
Hospital Authority Revenue,
(Medical Center of Central
Georgia), Trust Company
Bank LOC,
3.750% 04/01/07+............... 1,810,000
1,900,000 Savannah, Georgia, Multi-family
Housing Authority Revenue,
(Somerset Place Project),
AmSouth Bank N.A.,
Birmingham LOC,
3.700% 10/01/13+............... 1,900,000
5,000,000 Smyrna, Georgia, Multi-family
Housing Authority Revenue,
(Post VY Project), (FNMA
Insured),
3.650% 06/01/25+............... 5,000,000
4,000,000 Tallapoosa, Georgia, Development
Authority Revenue, (U.S. Canada
Company Project), Harris Trust
& Savings Bank LOC,
3.700% 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,
3.750% 04/01/00+............... 5,000,000
--------------
72,138,057
--------------
IDAHO -- 1.7%
20,000,000 Idaho Health Facilities
Authority, Holy Cross Health
Systems Corporation Revenue,
3.700% 12/01/23+............... 20,000,000
--------------
ILLINOIS -- 6.2%
3,765,000 Chicago, Illinois, GO, Series
1985, Sanwa Bank Ltd. LOC,
4.150% 01/01/10+............... 3,765,000
2,000,000 Chicago, Illinois, O'Hare
International Airport,
(American Airlines Project),
Series B, Westdeutsche
Landesbank LOC,
3.800% 12/01/17++.............. 2,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$ 2,200,000 Illinois (State of), Development
Finance Authority, Economic
Development Revenue, (Addison
450 LP Project), American
National Bank & Trust Company
LOC,
3.800% 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, NY LOC,
4.025% 01/01/09+............... 2,000,000
1,700,000 (Quality Screw & Nut Company
Project), First National Bank
of Chicago LOC,
3.900% 05/01/15+............... 1,700,000
1,500,000 Illinois (State of), Development
Finance Authority, (L. Karp &
Sons Inc.),
4.200% 09/01/05+............... 1,500,000
9,300,000 Illinois (State of), Development
Finance Authority, PCR,
(Illinois Power Company
Project), Series B, AMT,
Mitsubishi Bank Ltd. LOC,
4.000% 03/01/17+............... 9,300,000
Illinois (State of), Educational
Facilities Revenue:
4,980,000 (Art Institute), Mitsubishi Bank
Ltd. LOC,
4.000% 03/01/27+............... 4,980,000
3,700,000 (Illinois Institute of
Technology), Series A, Harris
Trust & Savings Bank; Northern
Trust Company; and National
Bank of Detroit LOC,
3.700% 09/01/25+............... 3,700,000
Illinois (State of), Health
Facilities Authority Revenue:
(Evanston Hospital Corporation
Project), Series B:
5,000,000 4.650% 02/15/96#............... 5,000,000
5,000,000 4.000% 05/15/96................ 5,000,000
6,700,000 (The Streeterville Corporation
Project), First National Bank
of Chicago LOC,
3.750% 08/15/24+............... 6,700,000
(Victory Health Project), Series
C, First National Bank of
Chicago LOC:
8,200,000 3.800% 02/08/96#............... 8,200,000
5,000,000 3.800% 02/08/96................ 5,000,000
5,500,000 Illinois (State of), Toll Highway
Authority, Toll Highway
Priority Revenue, Series B,
Societe Generale LOC,
3.650% 01/01/10+............... 5,500,000
4,500,000 Kane (County of), Illinois,
Revenue Bonds, (Glenwood School
For Boys), Harris Trust &
Savings Bank, Illinois LOC,
3.750% 02/01/28+............... 4,500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 72
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$ 1,900,000 Southwestern Illinois Development
Authority, Industrial
Development Revenue, (Robinson
Steel Company Inc. Project),
American National Bank & Trust
Company LOC,
3.800% 12/01/06+............... $ 1,900,000
--------------
72,945,000
--------------
INDIANA -- 7.0%
1,345,000 Greenfield Industries, Indiana,
Economic Development Revenue,
(Health Quest Corporation),
AMT, Bank One LOC,
3.750% 09/01/05+............... 1,345,000
38,000,000 Indiana (State of), Bond Bank,
Advance Funding Program,
Promissory Notes, Series A-3,
4.061% 01/10/96+............... 38,000,000
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),
Columbus Bank & Trust
Company LOC,
4.050% 01/01/09+............... 2,600,000
8,490,000 Indiana (State of), Municipal
Power Agency, Series A,
Pre-refunded at 103%,
9.200% 01/01/96................ 8,777,446
3,000,000 Indianapolis, Indiana, Economic
Development Revenue, (Art
Center of Indianapolis
Project), Bank One LOC,
3.750% 02/01/98+............... 3,000,000
Jasper (County of), Indiana, PCR,
(Northern Indiana Public
Service), Barclays Bank Plc
LOC:
3,200,000 Series A,
3.700% 12/19/95#............... 3,200,000
9,000,000 Series B,
3.800% 12/07/95#............... 9,000,000
12,000,000 Series C,
3.700% 12/19/95#................ 12,000,000
1,800,000 Logansport, Indiana, Economic
Development Authority, (Elco
Indiana Inc. Project), AMT, NBD
Bank N.A. LOC,
4.000% 10/01/03+............... 1,800,000
--------------
82,122,446
--------------
IOWA -- 1.5%
7,500,000 Iowa (State of), Corporation
Warrant Certificates, Series A,
(CAPGTY Insured-State Aid
Withholding), (SBPA,
(Bayerische Landesbank)),
4.750% 06/28/96#............... 7,537,266
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
IOWA -- (CONTINUED)
$ 4,700,000 Iowa (State of), Finance
Authority, Solid Waste Disposal
Revenue, (Cedar River Paper
Company), Series A,
3.800% 07/01/23++.............. $ 4,700,000
5,000,000 Iowa (State of), Student Loan
Liquidity Corporation, Series
A, AMT, (AMBAC Guaranteed),
(SBPA, (Norwest Corporation)),
3.800% 12/01/13+............... 5,000,000
--------------
17,237,266
--------------
KANSAS -- 1.1%
12,450,000 Olathe, Kansas, Educational
Facilities Revenue, (Kansas
Independent College
Association), Series A, Marine
Midland Bank and Hong Kong and
Shanghai Banking Corporation
LOC,
3.800% 07/01/24+............... 12,450,000
--------------
KENTUCKY -- 2.0%
2,200,000 Hopkinsville, Kentucky,
Industrial Building Revenue,
(Brazeway Inc. Project), AMT,
National Bank of Detroit LOC,
3.900% 06/01/04+............... 2,200,000
1,296,000 Jefferson (County of), Kentucky,
Hospital Revenue, (Belknap Inc.
Project), Chemical Bank LOC,
3.800% 12/01/14+++............. 1,296,000
1,300,000 Jeffersontown, Kentucky,
Industrial Building Revenue,
(Ragu Foods), AMT, PNC Bank,
Kentucky LOC,
4.000% 04/01/20+............... 1,300,000
Kentucky League of Cities,
Revenue Anticipation Notes,
Bank One, Kentucky LOC:
1,380,000 (Leitchfield), Series A,
3.750% 03/01/97+............... 1,380,000
6,200,000 (Madisonville), Series B,
3.750% 03/01/97+............... 6,200,000
3,500,000 Lebanon, Kentucky, Industrial
Development Revenue, (Wallace
Computer Services Inc.), AMT,
Wachovia Bank of Georgia LOC,
3.900% 06/01/19+............... 3,500,000
4,525,000 Lexington-Fayette, Kentucky,
Psychiatric Hospital Revenue,
(Charter Ridge Hospital
Project), Bankers Trust Company
LOC,
3.900% 03/01/05+............... 4,525,000
3,200,000 Louisville, Kentucky, Airport
Lease Revenue, Series B,
National City Bank LOC,
3.700% 02/01/19+............... 3,200,000
--------------
23,601,000
--------------
LOUISIANA -- 3.2%
5,100,000 Ascension Parish, Louisiana, PCR,
(Borden Inc. Project), Credit
Suisse LOC,
3.600% 12/01/09+............... 5,100,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 73
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
LOUISIANA -- (CONTINUED)
$ 3,000,000 Jefferson Parish, Louisiana,
Hospital Service District No.
2, Hospital Revenue, (FGIC
Guaranteed), (SBPA, (FGIC)),
3.600% 12/01/15+............... $ 3,000,000
4,000,000 Louisiana (State of), Offshore
Term Authority, Deepwater Port
Revenue, Union Bank of
Switzerland LOC,
3.800% 09/01/08+............... 4,000,000
20,225,000 Louisiana (State of), Public
Facilities Authority, PCR,
(Ciba-Geigy Corporation
Project), Swiss Bank LOC
3.700% 12/01/04+............... 20,225,000
5,000,000 New Orleans, Louisiana, Aviation
Board, (Passenger Facilities
Charge Projects), AMT, Canadian
Imperial Bank of Commerce and
Banque Paribas LOC,
3.950% 12/01/19+............... 5,000,000
--------------
37,325,000
--------------
MAINE -- 1.5%
17,250,000 Maine (State of), Solid Waste
Resources Recovery Revenue,
Series K, Marine Midland Bank
and Hong Kong and Shanghai
Banking Corporation LOC,
3.800% 07/01/12+............... 17,250,000
--------------
MARYLAND -- 2.0%
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,
3.750% 10/14/11+++............. 3,300,000
2,300,000 Maryland (State of), Industrial
Development Finance Authority,
(Rock-Tennessee Converting
Company), AMT, Trust Company
Bank LOC,
3.900% 05/01/06+............... 2,300,000
9,600,000 Northeast Maryland Waste Disposal
Authority, Resource Recovery
Revenue, (Hartford County
Residential), (AMBAC Insured),
(SBPA, (Credit Locale de
France)),
3.600% 01/01/08+............... 9,600,000
2,000,000 Prince Georges (County of),
Maryland, Housing Authority
Mortgage Revenue,
(Laurel-Oxford Project),
Bankers Trust Company LOC,
3.775% 10/01/07+............... 2,000,000
--------------
23,800,000
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MASSACHUSETTS -- 0.5%
Massachusetts (Commonwealth of),
Industrial Finance Authority,
Industrial Development Revenue,
AMT:
$ 2,000,000 (Barker Steel Company), State
Street Bank & Trust Company
LOC,
4.250% 11/01/15+............... $ 2,000,000
4,000,000 (Sundstrand Corporation Project),
Union Bank of Switzerland LOC,
3.850% 05/01/32+............... 4,000,000
--------------
6,000,000
--------------
MICHIGAN -- 0.9%
2,000,000 Jackson (County of), Michigan,
Economic Development
Corporation, Economic
Development Revenue, (Sealed
Power Corporation), National
Bank of Detroit LOC,
3.850% 10/01/19+............... 2,000,000
3,425,000 Jackson (County of), Michigan,
Economic Development
Corporation, Industrial
Development Revenue, (Jackson
Association LLC), Bank One,
Dayton LOC,
3.750% 10/01/14+............... 3,425,000
3,000,000 Michigan (State of), Housing
Development Authority, Limited
Obligation Revenue, (Pine Ridge
Project), National Westminster
Bank Plc LOC,
3.650% 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,
3.800% 12/01/98+............... 2,600,000
--------------
11,025,000
--------------
MINNESOTA -- 1.7%
1,425,000 Chaska, Minnesota, Industrial
Development Revenue, (Flowers
Holding Company Project), AMT,
Trust Company Bank LOC,
3.900% 02/01/17+............... 1,425,000
6,100,000 Minneapolis, Minnesota, Community
Development Agency Revenue,
(Arena Acquisition Project),
Series A, First Bank LOC,
3.850% 10/01/24+............... 6,100,000
5,925,000 Minnesota (State of), School
District, Tax Anticipation
Certificates of Indebtedness,
Series B,
4.650% 03/21/96................ 5,925,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 74
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MINNESOTA -- (CONTINUED)
$ 6,000,000 Rochester (City of), Minnesota,
Health Care Facilities Revenue,
(Mayo Foundation/Mayo Medical
Center), Series C,
3.750% 02/23/96................ $ 6,000,000
--------------
19,450,000
--------------
MISSISSIPPI -- 0.5%
Mississippi Business Finance
Corporation, Industrial
Development Revenue, AMT:
3,000,000 (Choctaw Maid Farms Inc.
Project), Rabobank Nederland
LOC,
3.900% 03/01/10+............... 3,000,000
3,000,000 (Nitek Metal Services Inc.
Project), AMT, Mitsubishi Bank
Ltd. LOC,
3.850% 03/01/05+............... 3,000,000
--------------
6,000,000
--------------
MISSOURI -- 0.9%
Missouri (State of), Health &
Educational Facilities
Authority Revenue:
3,400,000 School District Advance Funding
Program, Series D, (SBPA,
(Bayerische Landesbank)),
4.500% 08/19/96................ 3,412,824
200,000 (Washington University Project),
Series 1985-A, (SBPA, (Morgan
Guaranty Trust Company)),
3.550% 09/01/10+............... 200,000
7,000,000 Missouri (State of), Housing
Development Commission, (SBPA,
(FGIC)),
4.000% 07/01/96#............... 7,000,000
--------------
10,612,824
--------------
NEBRASKA -- 1.1%
4,200,000 Nebraska (State of), Higher
Education Loan Program, Student
Loan, Series E, (MBIA Insured),
3.650% 12/01/15+............... 4,200,000
5,000,000 Omaha, Nebraska, Public Power
District,
3.700% 12/19/95#............... 5,000,000
4,000,000 York, Nebraska, Industrial
Development Revenue,
(Sundstrand Corporation
Project), Union Bank of
Switzerland LOC,
3.850% 08/01/17+............... 4,000,000
--------------
13,200,000
--------------
NEW HAMPSHIRE -- 1.3%
15,500,000 New Hampshire (State of), Housing
Finance Authority, Series 1,
(Multi-family-Manchester), PNC
Bank LOC,
3.850% 12/01/12+............... 15,500,000
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
<C> <S> <C>
NEW JERSEY -- 1.3%
$10,000,000 Jersey City, New Jersey,
Promissory Notes,
5.125% 03/08/96................ $ 10,012,789
5,000,000 North Bergen Township, New
Jersey, State Aid Notes,
5.000% 04/26/96................ 5,009,473
--------------
15,022,262
--------------
NEW MEXICO -- 1.9%
2,800,000 Albuquerque, New Mexico, (Charter
Hospital Inc. Project), Bankers
Trust Company LOC,
3.750% 03/01/14+............... 2,800,000
4,500,000 Albuquerque, New Mexico, Gross
Receipts, Lodgers Tax Revenue,
Series A, Canadian Imperial
Bank of Commerce LOC,
3.700% 07/01/22+............... 4,500,000
14,500,000 Farmington, New Mexico, Utility
System Revenue, (FGIC Insured),
Pre-refunded at 102%,
9.750% 05/15/96................ 15,161,224
--------------
22,461,224
--------------
NORTH CAROLINA -- 2.2%
8,000,000 Bladen (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (BCH Energy LP
Project), Mitsubishi Bank Ltd.
LOC,
4.100% 11/01/20+............... 8,000,000
3,800,000 Mecklenburg (County of), North
Carolina, Banque Nationale de
Paris LOC,
3.750% 12/01/09+............... 3,800,000
2,500,000 Mecklenburg (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (Virkler Company
Project), AMT, First Union
National Bank of North Carolina
LOC,
3.850% 12/01/04+............... 2,500,000
4,500,000 Randolph (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (Wayne Steel Inc.),
Bank One, Akron LOC,
3.900% 09/01/05+............... 4,500,000
3,300,000 Stanley (County of), North
Carolina, Industrial
Development Authority, PCR,
(General Signal), Wachovia Bank
LOC,
3.950% 12/01/00+............... 3,300,000
4,000,000 Winston-Salem, North Carolina,
(Risk Acceptance Management
Corporation Project),
Certificates of Participation,
Series 1988, (SBPA, (National
Westminster Bank Plc)),
3.650% 07/01/09+............... 4,000,000
--------------
26,100,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 75
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
<S> <C> <C>
OHIO -- 1.5%
$ 4,800,000 Lorain (County of), Ohio,
Hospital Revenue, (Humility of
Mary Health Care Corporation
Hospital), Series B, PNC Bank
LOC,
3.800% 12/15/03+............... $ 4,800,000
Ohio (State of), Air Quality
Development Authority, PCR:
10,000,000 Duquesne Power, Union Bank of
Switzerland LOC,
3.650% 07/18/96................ 10,000,000
2,800,000 (Timken Company Project), Credit
Suisse LOC,
3.650% 06/01/01+............... 2,800,000
--------------
17,600,000
--------------
OREGON -- 1.2%
8,000,000 Oregon (State of), Housing and
Community Services Department,
Mortgage Revenue, Single-family
Mortgage Program, Series D,
4.100% 09/03/96................ 8,000,000
5,500,000 Portland (City of), Oregon,
Multi-family Housing Revenue,
(University Park Apartments
Project), Chase Manhattan
Corporation LOC,
3.800% 10/01/11+............... 5,500,000
--------------
13,500,000
--------------
PENNSYLVANIA -- 6.4%
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
10,000,000 United Jewish Federation, Series
B, PNC Bank LOC,
3.850% 10/01/25+............... 10,000,000
4,050,000 Carbon (County of), Pennsylvania,
Industrial Development
Authority, (Panther Creek
Partners), Series A, AMT,
National Westminster Bank Plc
LOC,
3.900% 12/07/95#............... 4,050,000
Delaware (County of),
Pennsylvania, Industrial
Development Authority, Solid
Waste Revenue, (Scott Paper
Company), National Westminster
Bank Plc LOC:
2,000,000 Series D,
3.700% 12/01/18+............... 2,000,000
1,200,000 Series E,
3.700% 12/01/18+............... 1,200,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PENNSYLVANIA -- (CONTINUED)
<S> <C> <C>
Delaware Valley, Pennsylvania,
Regional Finance Authority,
Marine Midland Bank and Hong
Kong and Shanghai Banking
Corporation LOC:
$10,000,000 Local Government Revenue, Series
C,
4.000% 12/01/20+............... $ 10,000,000
14,700,000 Mode 1,
4.000% 08/01/16+............... 14,700,000
1,240,000 Schuylkill (County of),
Pennsylvania, Industrial
Development Authority,
(Grumbacher & Son),
PNC Bank LOC,
3.850% 01/01/12+............... 1,240,000
3,640,000 Sewickley Valley, Pennsylvania,
Hospital Authority Revenue,
(Sewickley Valley Hospital
Project), Series B, PNC Bank
LOC,
5.000% 12/15/95#............... 3,640,405
5,025,000 Union (County of), Pennsylvania,
Hospital Authority Revenue,
(Evangelical Community
Hospital), Series B, PNC Bank
LOC,
3.800% 10/01/23+............... 5,025,000
Venango (City of), Pennsylvania,
Regional Finance Authority
Revenue, (Scrubgrass Project),
AMT, National Westminster Bank
Plc LOC:
10,300,000 3.950% 02/09/96#............... 10,300,000
7,150,000 3.800% 02/13/96#............... 7,150,000
--------------
74,305,405
--------------
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,
3.750% 04/01/04+............... 4,000,000
--------------
SOUTH CAROLINA -- 2.7%
10,000,000 Charleston, South Carolina, Tax
Anticipation Notes,
5.000% 03/15/96................ 10,013,713
5,250,000 Kershaw (County of), South
Carolina, Industrial
Development Revenue, (Deroyal
Textiles Inc. Project), AMT,
Third National Bank, Nashville
LOC,
3.900% 12/01/07+............... 5,250,000
South Carolina (State of), Jobs,
Economic Development Authority,
Health Facilities Revenue:
6,900,000 (Baptist Healthcare Systems),
Credit Locale de France LOC,
3.600% 08/01/17+............... 6,900,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 76
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
<S> <C> <C>
South Carolina (State of), Jobs,
Economic Development Authority,
Health Facilities Revenue --
(continued):
$ 5,960,000 (Martha Franks Baptist Center
Project), Wachovia Bank,
Columbia LOC,
3.750% 04/01/19+............... $ 5,960,000
3,400,000 (Specialty Equipment Companies
Project), AMT, Barclays Bank
Plc LOC,
3.900% 11/01/10+............... 3,400,000
--------------
31,523,713
--------------
TENNESSEE -- 2.4%
6,969,000 Cumberland (County of),
Tennessee, Industrial
Development Board, Industrial
Development Revenue,
(Crossville Ceramics Company
Project), American National
Bank & Trust Company LOC,
3.800% 01/01/00+............... 6,969,000
Jackson (County of), Tennessee,
Industrial Development Board,
(Essette Project), Morgan
Guaranty Trust Company, New
York LOC:
2,300,000 Series A,
3.750% 08/01/00+............... 2,300,000
5,300,000 Series B,
3.900% 08/01/15++.............. 5,300,000
2,400,000 Metropolitan Nashville Airport
Authority, Special Facilities
Revenue, (American Airlines
Project), Series A, Credit
Suisse LOC,
3.850% 10/01/12++.............. 2,400,000
9,700,000 Nashville & Davidson (Counties
of), Tennessee, Metropolitan
Government Municipal Securities
Trust Receipts, Series SGA 11,
(SBPA, (Societe Generale)),
3.700% 05/15/21+............... 9,700,000
1,900,000 Springfield, Tennessee,
Industrial Development Board,
(All American Homes of
Tennessee Project), First
National Bank of Chicago LOC,
3.900% 11/15/09+............... 1,900,000
--------------
28,569,000
--------------
TEXAS -- 8.8%
1,000,000 Brazos River, Texas, Higher
Educational Authority,
(Hoffman-LaRoche), Bankers
Trust Company LOC,
3.900% 12/01/95+............... 1,000,000
2,000,000 El Paso, Texas, Multi-family
Housing Finance Corporation,
(Viva Apartments Project), AMT,
General Electric Capital
Corporation LOC,
4.250% 09/01/96#............... 2,004,294
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
<S> <C> <C>
Harris (County of), Texas:
$ 8,000,000 Health Facilities Revenue,
Development Corporation
Hospital Revenue, (Methodist
Hospital Project),
3.800% 12/01/25++.............. $ 8,000,000
10,500,000 Toll Road, Unlimited Tax, Series
G,
3.650% 08/01/20+............... 10,500,000
2,300,000 Houston, Texas, Certificates of
Obligation, Series B,
3.650% 04/01/98+............... 2,300,000
6,100,000 Montgomery (County of), Texas,
Industrial Development
Corporation, (Houston Area
Research Center Project),
Morgan Guaranty Trust Company,
New York LOC,
3.650% 12/01/15+............... 6,100,000
8,900,000 North Central Texas, Health
Facilities Development
Corporation, Series B,
(Methodist Hospital, Dallas
Project), (SBPA, (Chemical
Bank)),
3.900% 10/01/15++.............. 8,900,000
1,200,000 Nueces (County of), Texas, Health
Facilities Development
Corporation Revenue, (Driscoll
Foundation Children's
Hospital), Series 1985,
3.650% 07/01/15+............... 1,200,000
2,600,000 Sulphur Springs, Texas,
Industrial Development
Authority, (Hon Industrial Inc.
Project), Credit Suisse LOC,
3.750% 12/01/13+............... 2,600,000
11,900,000 Tarrant (County of), Texas,
Health Facilities Development
Corporation, Retirement
Community Revenue, (The
Cumberland Resthome Inc.
Project), Banque Paribas LOC,
4.000% 01/01/21++.............. 11,900,000
35,000,000 Texas (State of), Tax and Revenue
Anticipation Notes, Series A,
4.750% 08/30/96................ 35,171,564
13,570,000 Texas (State of), Permanent
University Fund, Series 18,
Putters,
3.800% 07/01/11+............... 13,570,000
--------------
103,245,858
--------------
UTAH -- 1.0%
4,200,000 Intermountain Power Agency, Utah,
Power Supply Revenue, Series E,
3.850% 06/17/96#............... 4,200,000
3,200,000 Murray (County of), Utah,
Industrial Development
Authority, (Hunter Douglas
Realty Property), AMT, ABN-AMRO
Bank LOC,
3.900% 09/01/14+............... 3,200,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 77
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
UTAH -- (CONTINUED)
<S> <C> <C>
$ 3,500,000 Salt Lake (County of), Utah,
Industrial Development
Authority, (Technologies Inc.
Project), AMT, National
Australia Bank Ltd. LOC,
4.000% 12/01/12+............... $ 3,500,000
1,200,000 West Valley (City of), Utah,
Industrial Development
Authority, (Johnson Matthey
Inc. Project), Canadian
Imperial Bank of Commerce LOC,
3.900% 12/01/11++.............. 1,200,000
--------------
12,100,000
--------------
VERMONT -- 0.2%
2,000,000 Vermont (State of), Health and
Educational Building Finance
Agency Revenue, (VHA New
England Hospital), Series E,
(AMBAC Insured), (SBPA, (First
National Bank of Chicago)),
3.650% 12/01/25+............... 2,000,000
--------------
VIRGINIA -- 2.8%
1,300,000 Bedford (County of), Virginia,
Industrial Development Revenue,
(Nekoosa Packaging Corporation
Project), Industrial Bank of
Japan Ltd. LOC,
3.900% 10/01/04+............... 1,300,000
2,000,000 Botetourt (County of), Virginia,
Industrial Development
Authority, (Emkay Holdings LLC
Project), AMT, State Street
Bank & Trust Company LOC,
3.800% 10/01/05+............... 2,000,000
2,500,000 Colonial Heights, Virginia,
Industrial Development
Authority, (Philip Morris
Company Project),
3.750% 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,
3.900% 10/01/06+............... 3,900,000
6,400,000 Loudon (County of), Virginia,
Industrial Development
Authority, Residential Care
Facilities Revenue, (Falcons
Landing Project), Series B,
Banque Paribas LOC,
3.850% 11/01/24++.............. 6,400,000
3,400,000 Roanoke, Virginia, Industrial
Development Authority, Hospital
Revenue, (Roanoke Memorial
Hospital Project), Series C,
3.750% 07/01/19+............... 3,400,000
2,000,000 Spotsylvania (County of),
Virginia, Industrial
Development Revenue, (Carlisle
Corporation Project), Trust
Company Bank LOC,
3.750% 06/01/08+............... 2,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
<S> <C> <C>
$10,000,000 Virginia (Commonwealth of),
Educational Loan Authority,
Guaranteed Student Loan
Program, Series A, Guaranteed
Investment Company,
Westdeutsche Landesbank
Girozentrale LOC,
4.000% 02/01/96................ $ 10,000,000
1,575,000 Winchester, Virginia, Industrial
Development Authority, Harris
Trust & Savings Bank LOC,
3.850% 08/01/07+............... 1,575,000
--------------
33,075,000
--------------
WASHINGTON -- 1.0%
Pierce (County of), Washington:
5,500,000 Economic Development Authority,
(CSX 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,
3.800% 10/01/20+............... 3,000,000
3,600,000 Washington (State of), Housing
Finance Authority, Multi-family
Mortgage Revenue, (Inglenook
Court Project), Bank of America
LOC,
4.100% 07/01/25+............... 3,600,000
--------------
12,100,000
--------------
WEST VIRGINIA -- 0.9%
10,000,000 Fayette (County of), West
Virginia, County Commission,
Solid Waste Disposal Facilities
Revenue, (Georgia Pacific
Corporation Project),
Industrial Bank of Japan Ltd.
LOC,
4.050% 05/01/18+............... 10,000,000
--------------
WISCONSIN -- 2.0%
4,000,000 Janesville, Wisconsin, School
District, Tax and Revenue
Anticipation Notes,
4.250% 09/25/96................ 4,007,828
4,000,000 Menomonee Falls, Wisconsin,
Industrial Development
Authority Revenue, (Jemma LLC
Project), AMT, Bank One,
Milwaukee LOC,
3.900% 09/01/14+............... 4,000,000
2,500,000 Pleasant Prairie, Wisconsin,
Industrial Development
Authority Revenue, (Nucon
Corporation Project), AMT,
American National Bank & Trust
Company, Chicago LOC,
3.950% 02/01/22+............... 2,500,000
5,500,000 Racine, Wisconsin, Unified School
District, Tax and Revenue
Anticipation Promissory Notes,
4.500% 08/23/96................ 5,517,265
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 78
NATIONS FUND TRUST
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WISCONSIN -- (CONTINUED)
<S> <C> <C>
$ 7,220,000 Wisconsin (State of), Public
Power Supply Systems Revenue,
Municipal Receipts, Series SGA
2, (AMBAC Insured), (SBPA,
(Societe Generale)),
3.750% 07/01/21+............... $ 7,220,000
--------------
23,245,093
--------------
WYOMING -- 0.3%
3,000,000 Sweetwater (County of), Wyoming,
PCR, (Pacific Corporation
Project), Series A, Credit
Suisse LOC,
3.650% 07/01/15+............... 3,000,000
--------------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $1,159,527,318).......... 1,159,527,318
------------
<CAPTION>
SHARES
- ----------
<S> <C> <C>
MONEY MARKET FUNDS -- 0.4%
4,075,000 AIM Tax-Exempt Fund.............. 4,075,000
800,000 Fidelity Institutional Tax-Exempt
Cash Fund...................... 800,000
--------------
TOTAL MONEY
MARKET FUNDS
(Cost $4,875,000).............. 4,875,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
------------
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,164,402,318*).............. 99.5% $1,164,402,318
OTHER ASSETS AND
LIABILITIES (NET)................... 0.5 6,380,992
---- --------------
NET ASSETS............................ 100.0% $1,170,783,310
---- ------------
</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 November 30,
1995.
++ Variable rate demand notes payable upon not more than one calendar day's
notice. The interest rate shown reflects the rate in effect at November 30,
1995.
+++ Variable rate demand notes payable upon not more than thirty calendar days'
notice. The interest rate shown reflects the rate in effect at November 30,
1995.
# Put date.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CAPGTY Capital Guaranty Insurance Corporation
FGIC Federal Guaranty Investment Corporation
FNMA Federal National Mortgage Association
GO General Obligation Bonds
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 79
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
GOVERNMENT NATIONS
MONEY MARKET TAX EXEMPT
FUND FUND
-------------------------------
<S> <C> <C>
ASSETS:
Investments, at value. See accompanying schedules............................................. $418,189,454 $1,164,402,318
Cash.......................................................................................... 500 892,318
Interest receivable........................................................................... 2,115,940 9,018,177
Dividends receivable.......................................................................... 33,520 30,702
Receivable for Fund shares sold............................................................... 162,157 644,980
Receivable for investment securities sold..................................................... -- 5,778,000
Prepaid expenses.............................................................................. 25,770 37,925
------------ -------------
Total Assets................................................................................ 420,527,341 1,180,804,420
------------ ------------
LIABILITIES:
Payable for Fund shares redeemed.............................................................. 1,067,154 2,187,671
Payable for investment securities purchased................................................... -- 4,700,000
Investment advisory fee payable (Note 2)...................................................... 16,972 --
Administration fee payable (Note 2)........................................................... 17,488 18,696
Shareholder servicing and distribution fees payable (Note 3).................................. 17,698 47,110
Transfer agent fees payable (Note 2).......................................................... 13,715 36,061
Custodian fees payable (Note 2)............................................................... 5,609 14,031
Dividends payable............................................................................. 1,695,762 2,866,855
Accrued Trustees' fees and expenses (Note 2).................................................. 3,248 8,732
Accrued expenses and other payables........................................................... 2,305 141,954
------------ -------------
Total Liabilities........................................................................... 2,839,951 10,021,110
------------ -------------
NET ASSETS.................................................................................... $417,687,390 $1,170,783,310
------------ ------------
Investments, at cost (Note 1)................................................................. $418,189,454 $1,164,402,318
------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 80
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
GOVERNMENT NATIONS
MONEY MARKET TAX EXEMPT
FUND FUND
-------------------------------
<S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income........................................................... $ 13,157 $ 5,737
Accumulated net realized loss on investments sold............................................. (61,250) (68,933)
Paid-in capital............................................................................... 417,735,483 1,170,846,506
------------ --------------
$417,687,390 $1,170,783,310
------------ ------------
NET ASSETS:
Trust A Shares................................................................................ $332,894,668 $ 905,125,150
------------ ------------
Trust B Shares................................................................................ $ 27,122,136 $ 11,666,085
------------ ------------
Investor A Shares............................................................................. $ 26,175,479 $ 126,207,424
------------ ------------
Investor B Shares............................................................................. $ 27,079,175 $ 86,373,912
------------ ------------
Investor C Shares............................................................................. $ 4,413,847 $ 41,408,690
------------ ------------
Investor D Shares............................................................................. $ 2,085 $ 2,049
------------ ------------
SHARES OUTSTANDING:
Trust A Shares................................................................................ 332,932,998 905,174,413
------------ ------------
Trust B Shares................................................................................ 27,125,259 11,666,720
------------ ------------
Investor A Shares............................................................................. 26,178,493 126,214,293
------------ ------------
Investor B Shares............................................................................. 27,082,293 86,378,612
------------ ------------
Investor C Shares............................................................................. 4,414,355 41,410,944
------------ ------------
Investor D Shares............................................................................. 2,085 2,049
------------ ------------
TRUST A SHARES:
Net asset value, offering price and redemption price per share................................ $1.00 $1.00
----- ----
TRUST B SHARES:
Net asset value, offering price and redemption price per share................................ $1.00 $1.00
----- ----
INVESTOR A SHARES:
Net asset value, offering price and redemption price per share................................ $1.00 $1.00
----- ----
INVESTOR B SHARES:
Net asset value, offering price and redemption price per share................................ $1.00 $1.00
----- ----
INVESTOR C SHARES:
Net asset value, offering price and redemption price per share................................ $1.00 $1.00
----- ----
INVESTOR D SHARES:
Net asset value, offering price and redemption price per share................................ $1.00 $1.00
----- ----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 81
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
GOVERNMENT NATIONS
MONEY MARKET TAX EXEMPT
FUND FUND
-------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest........................................................................................... $29,863,239 $44,770,781
Dividends.......................................................................................... 527,323 455,629
----------- -----------
Total investment income........................................................................ 30,390,562 45,226,410
----------- -----------
EXPENSES:
Investment advisory fee (Note 2)................................................................... 2,064,900 4,614,862
Administration fee (Note 2)........................................................................ 508,212 1,138,817
Transfer agent fees (Note 2)....................................................................... 138,828 319,909
Custodian fees (Note 2)............................................................................ 77,627 162,281
Legal and audit fees............................................................................... 93,754 141,739
Trustees' fees and expenses (Note 2)............................................................... 9,527 25,800
Other.............................................................................................. 56,171 125,459
----------- -----------
Subtotal....................................................................................... 2,949,019 6,528,867
Shareholder servicing and distribution fees (Note 3):
Trust B Shares................................................................................... 175,681 52,564
Investor A Shares................................................................................ 66,320 325,609
Investor B Shares................................................................................ 53,417 107,280
Investor C Shares................................................................................ 2,573 43,328
Investor D Shares................................................................................ 4 2
Fees waived by investment adviser and administrator(s) (Note 2).................................... (1,388,915) (3,042,434)
----------- -----------
Total expenses................................................................................. 1,858,099 4,015,216
----------- -----------
NET INVESTMENT INCOME.............................................................................. 28,532,463 41,211,194
----------- -----------
NET REALIZED LOSS ON INVESTMENTS (NOTE 1).......................................................... (58,645) (29,615)
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................................... $28,473,818 $41,181,579
----------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 82
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
GOVERNMENT NATIONS
MONEY MARKET TAX EXEMPT
FUND FUND
--------------------------------
<S> <C> <C>
Net investment income.................................................................. $ 28,532,463 $ 41,211,194
Net realized loss on investments....................................................... (58,645) (29,615)
------------ --------------
Net increase in net assets resulting from operations................................... 28,473,818 41,181,579
Distributions to shareholders from net investment income:
Trust A Shares....................................................................... (22,596,106) (33,277,204)
Trust B Shares....................................................................... (3,756,089) (703,449)
Investor A Shares.................................................................... (981,076) (4,403,343)
Investor B Shares.................................................................... (1,144,233) (1,858,523)
Investor C Shares.................................................................... (54,874) (968,626)
Investor D Shares.................................................................... (85) (49)
Net increase/(decrease) in net assets from Fund share transactions:
Trust A Shares....................................................................... (99,787,328) 84,469,697
Trust B Shares....................................................................... (45,620,209) (6,540,627)
Investor A Shares.................................................................... 6,005,670 (25,504,325)
Investor B Shares.................................................................... 15,127,455 86,375,841
Investor C Shares.................................................................... 3,938,630 15,706,100
Investor D Shares.................................................................... 2,085 2,049
------------ --------------
Net increase/(decrease) in net assets.................................................. (120,392,342) 154,479,120
NET ASSETS:
Beginning of year...................................................................... 538,079,732 1,016,304,190
------------ --------------
End of year............................................................................ $417,687,390 $1,170,783,310
------------ -------------
Undistributed net investment income at end of year..................................... $ 13,157 $ 5,737
------------ -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 83
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1994
<TABLE>
<CAPTION>
NATIONS
GOVERNMENT NATIONS
MONEY MARKET TAX EXEMPT
FUND FUND
------------------------------
<S> <C> <C>
Net investment income.............................................................. $ 17,034,217 $ 23,746,442
Net realized loss on investments................................................... (2,905) (16,054)
------------ --------------
Net increase in net assets resulting from operations............................... 17,031,312 23,730,388
Distributions to shareholders from net investment income:
Trust A Shares................................................................... (15,228,225) (19,789,544)
Trust B Shares................................................................... (1,241,231) (240,984)
Investor A Shares................................................................ (371,082) (3,503,190)
Investor B Shares................................................................ (175,056) (139)
Investor C Shares................................................................ (5,166) (212,585)
Distributions to shareholders from net realized gain on investments:
Trust A Shares................................................................... (12,144) --
Trust B Shares................................................................... (875) --
Investor A Shares................................................................ (314) --
Investor B Shares................................................................ (120) --
Investor C Shares................................................................ (4) --
Net increase/(decrease) in net assets from Fund share transactions:
Trust A Shares................................................................... (42,446,076) 119,285,787
Trust B Shares................................................................... 72,745,468 18,207,347
Investor A Shares................................................................ 9,674,186 32,164,463
Investor B Shares................................................................ 11,954,838 2,771
Investor C Shares................................................................ 475,725 25,704,844
------------ --------------
Net increase in net assets......................................................... 52,401,236 195,349,158
NET ASSETS:
Beginning of year.................................................................. 485,678,496 820,955,032
------------ --------------
End of year........................................................................ $538,079,732 $1,016,304,190
------------ --------------
Undistributed net investment income at end of year................................. $ 13,157 $ 5,737
------------ --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 84
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
Since the Funds have sold and redeemed shares only at a constant net asset value
of $1.00 per share, the number of shares represented by such sales and
redemptions is the same as the amounts shown below for such transactions.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT
MONEY MARKET FUND NATIONS TAX EXEMPT FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994 NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold............................... $ 546,778,557 $ 898,644,857 $ 1,141,750,545 $ 898,874,695
Redeemed........................... (646,565,885) (941,090,933) (1,057,280,848) (779,588,908)
-------------- ------------- ---------------- -------------
Net increase/(decrease)............ $ (99,787,328) $ (42,446,076) $ 84,469,697 $ 119,285,787
-------------- ------------- ---------------- -------------
<CAPTION>
PERIOD ENDED PERIOD ENDED
NOVEMBER 30, 1994* NOVEMBER 30, 1994**
------------------ -------------------
<S> <C> <C> <C> <C>
TRUST B SHARES:
Sold............................... $ 248,116,349 $ 160,447,297 $ 53,653,303 $ 33,803,291
Redeemed........................... (293,736,558) (87,701,829) (60,193,930) (15,595,944)
-------------- ------------- ---------------- -------------
Net increase/(decrease)............ $ (45,620,209) $ 72,745,468 $ (6,540,627) $ 18,207,347
-------------- ------------- ---------------- -------------
<CAPTION>
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1994 NOVEMBER 30, 1994
----------------- -----------------
<S> <C> <C> <C> <C>
INVESTOR A SHARES:
Sold............................... $ 84,766,539 $ 57,950,126 $ 429,163,995 $ 640,101,128
Issued as reinvestment of
dividends........................ 922,078 319,707 4,080,291 3,157,999
Redeemed........................... (79,682,947) (48,595,647) (458,748,611) (611,094,664)
-------------- ------------- ---------------- -------------
Net increase/(decrease)............ $ 6,005,670 $ 9,674,186 $ (25,504,325) $ 32,164,463
-------------- ------------- ---------------- -------------
<CAPTION>
PERIOD ENDED PERIOD ENDED
NOVEMBER 30, 1994* NOVEMBER 30, 1994**
----------------- -----------------
<S> <C> <C> <C> <C>
INVESTOR B SHARES:
Sold............................... $ 117,437,216 $ 27,184,064 $ 232,917,465 $ 225,579
Issued as reinvestment of
dividends........................ 1,131,826 173,566 1,792,007 138
Redeemed........................... (103,441,587) (15,402,792) (148,333,631) (222,946)
-------------- ------------- ---------------- -------------
Net increase....................... $ 15,127,455 $ 11,954,838 $ 86,375,841 $ 2,771
-------------- ------------- ---------------- -------------
INVESTOR C SHARES:
Sold............................... $ 6,062,737 $ 780,999 $ 110,742,435 $ 47,707,960
Issued as reinvestment of
dividends........................ 51,949 4,888 955,874 210,883
Redeemed........................... (2,176,056) (310,162) (95,992,209) (22,213,999)
-------------- ------------- ---------------- -------------
Net increase....................... $ 3,938,630 $ 475,725 $ 15,706,100 $ 25,704,844
-------------- ------------- ---------------- -------------
<CAPTION>
PERIOD ENDED PERIOD ENDED
NOVEMBER 30, 1995* NOVEMBER 30, 1995**
------------------ -------------------
<S> <C> <C> <C> <C>
INVESTOR D SHARES:
Sold............................... $ 2,000 $ 2,000
Issued as reinvestment of
dividends........................ 85 49
-------------- ----------------
Net increase....................... $ 2,085 $ 2,049
-------------- ----------------
</TABLE>
- ---------------
* The Nations Government Money Market Fund's Trust B, Investor B, Investor C
and Investor D Shares commenced operations on June 16, 1994, May 17, 1994,
March 21, 1994 and February 10, 1995, respectively.
** The Nations Tax Exempt Fund's Trust B, Investor B, Investor C and Investor D
Shares commenced operations on June 16, 1994, May 17, 1994, March 7, 1994 and
February 10, 1995, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 85
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES TRUST B SHARES
--------------------------------------------------------- ----------------------
YEAR YEAR YEAR YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91* 11/30/95 11/30/94*
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS GOVERNMENT MONEY MARKET FUND
Operating performance:
Net asset value, beginning of year......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- ------- --------
Net investment income...................... 0.0558 0.0375 0.0294 0.0358 0.0571 0.0533 0.0200
-------- -------- -------- -------- -------- ------- --------
Distributions:
Dividends from net investment income....... (0.0558) (0.0375) (0.0294) (0.0358) (0.0571) (0.0533) (0.0200)
Distributions from net realized gains...... -- (0.0000)# -- -- -- -- (0.0000)#
-------- -------- -------- -------- -------- ------- --------
Total distributions........................ (0.0558) (0.0375) (0.0294) (0.0358) (0.0571) (0.0533) (0.0200)
-------- -------- -------- -------- -------- ------- --------
Net asset value, end of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- --------
Total return++............................. 5.72% 3.84% 2.96% 3.63%+++ 5.87%+++ 5.45% 2.02%
-------- -------- -------- -------- -------- -------- --------
Ratios to average net assets/supplemental
data:
Net assets, end of year (000's)............ $332,895 $432,729 $475,180 $414,412 $333,979 $27,122 $ 72,747
Ratio of operating expenses to average net
assets.................................. .. 0.30% 0.30% 0.30% 0.42% 0.43%+ 0.55% 0.55%+
Ratio of net investment income to average
net assets................................ 5.58% 3.79% 2.91% 3.55% 5.49%+ 5.33% 3.54%+
Ratio of operating expenses to average net
assets
without waivers........................... 0.57% 0.59% 0.56% 0.58% 0.62%+ 0.82% 0.84%+
Net investment income per share without
waivers................................... $ 0.0531 $ 0.0347 $ 0.0269 $ 0.0341 $ 0.0551 $0.0506 $ 0.0186
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88**
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS TAX EXEMPT FUND
Operating performance:
Net asset value,
beginning of year..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- -------- --------
Net investment
income................ 0.0361 0.0257 0.0223 0.0267 0.0422 0.0550 0.0600 0.0350
Dividends from net
investment income..... (0.0361) (0.0257) (0.0223) (0.0267) (0.0422) (0.0550) (0.0600) (0.0350)
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of
year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- -------- --------
Total return++......... 3.68% 2.60% 2.27% 2.70%+++ 4.31%+++ 5.63%+++ 6.17%+++ 3.55%+++
-------- -------- -------- -------- -------- -------- -------- --------
Ratios to average net
assets/supplemental
data:
Net assets, end of year
(000's)............... $905,125 $820,677 $701,403 $329,265 $168,829 $173,834 $145,109 $143,245
Ratio of operating
expenses to average
net assets............ 0.30% 0.27% 0.23% 0.40% 0.42% 0.40% 0.40% 0.40%+
Ratio of net investment
income to average net
assets................ 3.62% 2.59% 2.23% 2.65% 4.23% 5.51% 6.00% 4.97%+
Ratio of operating
expenses to average
net assets without
waivers............... 0.57% 0.59% 0.59% 0.57% 0.60% 0.75% 0.74% 0.75%+
Net investment income
per share
without waivers....... $ 0.0335 $ 0.0226 $ 0.0187 $ 0.0250 $ 0.0404 $ 0.0515 $ 0.0566 $ 0.0325
</TABLE>
- ---------------
* The Nations Government Money Market Fund's Trust A, Trust 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.
** The Nations Tax Exempt Fund's Trust A, Trust 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 periods indicated.
+++ Unaudited.
# Amount represents less than $0.0001 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 86
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR B SHARES INVESTOR C SHARES
-------------------------------------------------------------- ----------------------- -----------------------
YEAR YEAR YEAR YEAR PERIOD YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91* 11/30/95 11/30/94* 11/30/95 11/30/94*
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- ------- -------
0.0522 0.0340 0.0256 0.0358 0.0571 0.0532 0.0222 0.0532 0.0290
------- ------- ------- ------- ------- ------- ------- ------- -------
(0.0522) (0.0340) (0.0256) (0.0358) (0.0571) (0.0532) (0.0222) (0.0532) (0.0290)
-- (0.0000)# -- -- -- -- (0.0000)# -- (0.0000)#
------- ------- ------- ------- ------- ------- ------- ------- -------
(0.0522) (0.0340) (0.0256) (0.0358) (0.0571) (0.0532) (0.0222) (0.0532) (0.0290)
------- ------- ------- ------- ------- ------- ------- ------- -------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- -------- -------- --------
5.34% 3.45% 2.60% 3.63%+++ 5.86%+++ 5.45% 2.24% 5.44% 2.72%
-------- -------- -------- -------- -------- -------- -------- -------- --------
$26,175 $20,173 $10,499 $13,851 $ 8,949 $27,079 $ 11,955 $ 4,414 $ 476
0.65% 0.65% 0.61% 0.42% 0.43%+ 0.55% 0.55%+ 0.55% 0.55%+
5.23% 3.44% 2.60% 3.55% 5.49%+ 5.33% 3.54%+ 5.33% 3.54%+
0.92% 0.94% 0.87% 0.58% 0.62%+ 0.82% 0.84%+ 0.82% 0.84%+
$0.0495 $0.0311 $0.0231 $0.0341 $ 0.0551 $0.0505 $ 0.0206 $0.0505 $ 0.0268
<CAPTION>
INVESTOR D
SHARES
-----------
PERIOD
ENDED
11/30/95*
-----------
<S> <C>
$ 1.00
--------
0.0418
--------
(0.0418)
--
--------
(0.0418)
--------
$ 1.00
--------
4.38%
--------
$ 2
0.55%+
5.33%+
0.82%+
$ 0.0397
</TABLE>
<TABLE>
<CAPTION>
TRUST B SHARES INVESTOR A SHARES INVESTOR B SHARES
----------------------- ----------------------------------------------------------- -----------------------
YEAR PERIOD YEAR YEAR YEAR YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94** 11/30/95 11/30/94 11/30/93 11/30/92 11/30/91** 11/30/95 11/30/94**
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- -------- -------- -------- ------- ------- ------- -------
0.0335 0.0116 0.0335 0.0231 0.0198 0.0266 0.0422 0.0342 0.0141
(0.0335) (0.0116) (0.0335) (0.0231) (0.0198) (0.0266) (0.0422) (0.0342) (0.0141)
------- ------- -------- -------- -------- ------- ------- ------- -------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- -------- -------- --------
3.39% 1.17% 3.40% 2.36% 2.00% 2.68+++ 4.30%+++ 3.47% 1.43%
-------- -------- -------- -------- -------- -------- -------- -------- --------
$11,666 $ 18,207 $126,207 $151,714 $119,552 $80,158 $ 1,690 $86,374 $ 3
0.55% 0.52%+ 0.55% 0.52% 0.48% 0.55% 0.42%+ 0.50% 0.47%+
3.37% 2.34%+ 3.37% 2.34% 1.98% 2.50% 4.23%+ 3.42% 2.39%+
0.82% 0.84%+ 0.82% 0.84% 0.84% 0.72% 0.60%+ 0.77% 0.79%+
$0.0309 $ 0.0102 $0.0309 $0.0199 $0.0162 $0.0248 $ 0.0404 $0.0316 $ 0.0118
<CAPTION>
INVESTOR D
INVESTORS C SHARES SHARES
---------------------------- ----------
YEAR PERIOD PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94** 11/30/95**
--------- ---------- ----------
<S> <C> <C>
$ 1.00 $ 1.00 $ 1.00
------- ------- -------
0.0346 0.0203 0.0243
(0.0346) (0.0203) (0.0243)
------- ------- -------
$ 1.00 $ 1.00 $ 1.00
------- -------- --------
3.52% 1.90% 2.61%
------- -------- --------
$41,409 $ 25,704 $ 2
0.45% 0.42%+ 0.45%+
3.47% 2.44%+ 3.47%+
0.72% 0.74%+ 0.72%+
$0.0320 $ 0.0177 $ 0.0225
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 87
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended, (the "1940 Act"), as an open-end management investment
company. As of the date of this report, the Trust offers thirty-one separate
portfolios. Information presented in these financial statements pertains only to
Nations Government Money Market Fund and Nations Tax Exempt Fund (collectively
the "Funds"). The financial statements for the remaining funds are presented
under separate covers. The Funds currently offer six classes of shares: Trust A
Shares, Trust 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 equally. 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 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 valuing an instrument at its cost initially and thereafter
assuming a constant amortization to maturity of any discount or premium, as long
as the effect of fluctuating interest rates on the market value of the
instrument is not significant.
Repurchase Agreements: The Government Money Market Fund engages 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 is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights 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
rights. Unless permitted by the Securities and Exchange Commission, the Fund
will not enter into repurchase agreements with the investment adviser, the
distributor or any of their affiliates. The Fund's investment adviser, acting
under the supervision of the Board of Trustees, monitors the value of collateral
received as well as the creditworthiness of those banks and dealers with which
the Fund enters into repurchase agreements to evaluate potential risks.
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 on the
straight-line method, is earned from 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 the classes based upon the relative net assets of each class.
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, unless
offset by any available capital loss carryforward, annually after the fiscal
year in which earned or more frequently to maintain a net asset value of $1.00
per share. Additional distributions of net investment income and capital gains
may be made at the discretion of the Board of Trustees 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
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 Taxes: 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 are allocated to the Funds based upon
relative net assets. Operating expenses directly attributable to a Fund or class
of shares are charged to that Fund's or class' operations. Expenses of each Fund
not
26
<PAGE> 88
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS.
The Trust has entered into an Investment Advisory Agreement with NationsBank,
N.A. (together with its predecessors "NationsBank"), as successor to NationsBank
of North Carolina, N.A., an indirect wholly-owned subsidiary of NationsBank
Corporation, with respect to the Funds.
Under the terms of this Investment Advisory Agreement, NationsBank is entitled
to receive an advisory fee from each Fund equal to 0.40%, on an annualized
basis, of the average daily net assets of each Fund.
Stephens Inc. ("Stephens") serves as the Trust's administrator pursuant to an
Administration Agreement. First Data Investor Services Group, Inc., formerly The
Shareholder Services Group, Inc., a wholly-owned subsidiary of First Data
Corporation, serves as the Trust's co-administrator pursuant to a
Co-Administration Agreement. 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 average daily net assets of the Trust and the investment
portfolios of Nations Fund, Inc. and Nations Fund Portfolios, Inc. (other
registered open-end investment companies that are part of the Nations Fund
Family) on a combined basis.
For the year ended November 30, 1995, Stephens earned $679,738 (after fee
waivers) from the Funds for its services.
The investment 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 year ended November 30, 1995, the
investment adviser, administrator and/or co-administrator voluntarily waived
fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED FEES WAIVED BY
BY ADMINISTRATOR/
ADVISER CO-ADMINISTRATOR
-------------------------------
<S> <C> <C>
Government Money Market Fund....................................... $ 1,249,536 $139,379
Tax Exempt Fund.................................................... 2,694,691 347,743
</TABLE>
No officer, director or employee of NationsBank, Stephens or First Data Investor
Services Group, Inc., or any affiliate thereof, receives any compensation from
the Trust for serving as a trustee or officer of the Trust. The Trust pays each
Trustee 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 also reimburses
expenses incurred by the Trustees in attending such meetings.
Each Fund's eligible Trustees may participate in a nonqualified 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 the Nations Treasury Fund, a fund of Nations Fund, Inc.
The expense for the deferred compensation plan is included in the "Trustees'
fees and expenses" line of the Statements of Operations.
NationsBank of Texas, N.A., acts as custodian for the Funds, and for the year
ended November 30, 1995, earned $239,908 for providing such services. First Data
Investor Services Group, Inc. serves as transfer agent for the Funds' shares.
NationsBank of Texas, N.A. acts as the sub-transfer agent for the Trust A and
Trust B Shares of the Funds and for the year ended November 30, 1995, earned
approximately $11,700 for providing such services. Stephens acts as distributor
of the Funds' shares.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust has adopted a shareholder servicing plan ("Trust B Servicing Plan")
for the Trust B Shares of the Funds. Pursuant to the Trust B Servicing Plan, a
Fund may pay for certain shareholder support services that are provided to
owners of Trust B Shares by servicing agents that have entered into a
shareholder servicing agreement with the Trust. Payments under the Trust B
Servicing Plan are accrued daily and paid monthly at a rate that will not exceed
0.25%, on an
27
<PAGE> 89
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
annualized basis, of the average daily net assets of the Trust B Shares of the
Funds. Fees paid pursuant to the Trust B Servicing Plan are charged as expenses
of Trust B Shares of a Fund as accrued.
For the year ended November 30, 1995, the Funds incurred the following amounts
pursuant to the Trust B Servicing Plan:
<TABLE>
<CAPTION>
TRUST B
SERVICING PLAN
------------
<S> <C>
Government Money Market Fund................................................. $175,681
Tax Exempt Fund.............................................................. 52,564
</TABLE>
The Trust also has adopted distribution plans pursuant to Rule 12b-1 under the
1940 Act for the Investor A ("Investor A Plan") and the Investor B ("Investor B
Plan") Shares of the Funds. Pursuant to the Investor A Plan and the Investor B
Plan, the Funds pay fees directly to the distributor. Payments by a Fund under
the Investor A Plan and Investor B Plan may not exceed 0.10%, on an annualized
basis, of the average daily net assets of each Fund's Investor A or Investor B
Shares, respectively, of the Fund. Fees paid pursuant to the Investor A Plan and
Investor B Plan are charged as expenses of Investor A or Investor B Shares,
respectively, of a Fund as accrued.
The Trust also has adopted a shareholder servicing plan for the Investor A
("Investor A Servicing Plan") and the Investor B ("Investor B Servicing Plan")
Shares of the Funds. Pursuant to the Investor A Servicing Plan and the Investor
B Servicing Plan, the Funds may pay for certain shareholder support services
that are provided to holders of Investor A or Investor B Shares by servicing
agents that have entered into a shareholder servicing agreement with the Trust.
Payments under the Investor A Servicing Plan and the Investor B Servicing Plan
are accrued daily and paid monthly at a rate that will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the Investor A or Investor
B Shares, respectively, of the Fund. Fees paid pursuant to the Investor A
Servicing Plan and the Investor B Servicing Plan are charged as expenses of
Investor A or Investor B Shares, respectively, of a Fund as accrued.
For the year ended November 30, 1995, the Funds incurred the following amounts
pursuant to the above plans:
<TABLE>
<CAPTION>
FEES PAID PURSUANT TO:
INVESTOR A INVESTOR A INVESTOR B INVESTOR B
PLAN SERVICING PLAN PLAN SERVICING PLAN
----------------------------------------------------------
<S> <C> <C> <C> <C>
Government Money Market Fund............ $ 18,951 $ 47,369 -- $ 53,417
Tax Exempt Fund......................... 130,275 195,334 -- 107,280
</TABLE>
The Trust also has adopted a shareholder servicing plan for the Investor C
("Investor C Servicing Plan") and the Investor D ("Investor D Servicing Plan")
Shares of the Funds. Pursuant to the Investor C Servicing Plan and the Investor
D Servicing Plan, the Funds may pay for certain shareholder support services
that are provided to holders of Investor C or Investor D Shares by servicing
agents that have entered into a shareholder servicing agreement with the Trust.
Payments under the Investor C Servicing Plan and the Investor D Servicing Plan
are accrued daily and paid monthly at a rate that will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the Investor C or Investor
D Shares, respectively, of the Fund. Fees paid pursuant to the Investor C
Servicing Plan and the Investor D Servicing Plan are charged as expenses of
Investor C or Investor D Shares, respectively, of a Fund as accrued.
For the year ended November 30, 1995, the Funds incurred the following amounts
pursuant to the above plans:
<TABLE>
<CAPTION>
INVESTOR C INVESTOR D
SERVICING PLAN SERVICING PLAN
----------------------------------
<S> <C> <C>
Government Money Market Fund............................... $ 2,573 $4
Tax Exempt Fund............................................ 43,328 2
</TABLE>
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank.
28
<PAGE> 90
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the year ended November 30, 1995, the effective rates paid by the Funds, as
a percentage of average daily net assets, under the shareholder servicing and
distribution plans were as follows:
<TABLE>
<CAPTION>
TRUST B INVESTOR A INVESTOR B INVESTOR C INVESTOR D
SERVICING INVESTOR A SERVICING INVESTOR B SERVICING SERVICING SERVICING
PLAN PLAN PLAN PLAN PLAN PLAN PLAN
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Government Money Market Fund.... 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.25%
Tax Exempt Fund................. 0.25% 0.10% 0.15% -- 0.20% 0.15% 0.15%
</TABLE>
4. SHARES OF BENEFICIAL INTEREST.
As of November 30, 1995, an unlimited number of shares without par value were
authorized for the Trust. 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. LINE OF CREDIT.
The Trust and Nations Fund, Inc. participate in a $25 million line of credit
provided by Mellon Bank, N.A. (the "Bank") under a Line of Credit Agreement (the
"Agreement") dated March 17, 1994. Advances under the Agreement are taken
primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Under the Agreement, each Fund may borrow up to the lesser of $10
million or 5% of its net assets. Interest on borrowings is payable either at the
higher of the Bank's Money Market Rate or the London Interbank Offered Rate
(LIBOR) plus 0.25% on an annualized basis. The Funds and the other affiliated
entities are charged an aggregate commitment fee of 0.25% per annum on the
amount of the line of credit. Each Fund is liable only for that portion of any
commitment with respect to such Fund and shall not be liable for the portion of
the commitment fee of any other fund. The Agreement requires, among other
things, that each participating Fund maintain a ratio of net assets (not
including funds borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement of no less than 4 to 1. During the year
ended November 30, 1995, neither of the Funds borrowed under the Agreement.
6. CAPITAL LOSS CARRYFORWARD.
At November 30, 1995, the Funds had available for Federal income tax purposes
the following unused capital losses:
<TABLE>
<CAPTION>
LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED
EXPIRING IN EXPIRING IN EXPIRING IN
2001 2002 2003
-----------------------------------------------------
<S> <C> <C> <C>
Government Money Market Fund.................... -- $ 2,605 $58,645
Tax Exempt Fund................................. $23,264 16,054 29,615
</TABLE>
7. SUBSEQUENT EVENT.
Effective January 1, 1996, NationsBanc Advisors, Inc. will become the investment
advisor to the Trust. Also effective January 1, 1996, TradeStreet Investment
Associates, Inc. will become the sub-advisor to the Trust. Both NationsBanc
Advisors, Inc. and TradeStreet Investment Associates, Inc. are indirect,
wholly-owned subsidiaries of NationsBank. There will be no change in advisory
fees paid by the Trust.
29
<PAGE> 91
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUND TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Nations Government Money Market
Fund and Nations Tax Exempt Fund (each a Fund of Nations Fund Trust, hereafter
referred to as the "Trust") at November 30, 1995 and the results of each of
their operations, the changes in each of their net assets and the financial
highlights for the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Trust's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
January 19, 1996
30
<PAGE> 92
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 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
<PAGE> 93
This report is submitted for the general information of shareholders of Nations
Fund Trust. This material must be accompanied or preceded by a Nations Fund
prospectus.
<PAGE> 94
[NATIONS FUND CORPORATION LOGO] ------------
PO Box 34602 ------------
Charlotte, NC 28234-4602 BULK RATE
Toll Free 1-800-982-2271 U.S. POSTAGE
PAID
BOSTON, MA
PERMIT NO.
54201
------------
------------
AR4 = 11/95
<PAGE> 95
[NATIONS FUND LOGO]
NATIONS VALUE FUND
NATIONS CAPITAL GROWTH FUND
NATIONS EMERGING GROWTH FUND
NATIONS BALANCED ASSETS FUND
NATIONS EQUITY INDEX FUND
NATIONS DISCIPLINED EQUITY FUND
ANNUAL
For the Year Ended November 30, 1995
REPORT
<PAGE> 96
<TABLE>
<S> <C>
NOT
FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, 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: NATIONSBANK, N.A. ("NATIONSBANK")
<PAGE> 97
NATIONS FUND TRUST
DEAR SHAREHOLDER:
We are pleased to present the annual report for Nations Fund Trust for the
fiscal year ended November 30, 1995. During this period of bullish growth across
many financial markets, assets of the Nations Fund family of mutual funds
surpassed the $17 billion level.
Overall, 1995 marked a period that many investors will look back upon with great
fondness in the years to come. It offered the potential for investors to enjoy
significant returns in an environment marked by subdued volatility. As we look
forward to the opportunities 1996 presents, it is appropriate to reflect upon
the conclusions that can be drawn from market performance over the past twelve
months.
FINANCIAL MARKETS SUMMARY
The past year produced ideal market conditions for U.S. financial assets.
Historians might well cite 1995 as the definitive case study of a bull market.
Indeed, four factors coincided to make 1995 memorable. The U.S. economy grew at
a moderate pace. Inflation slowed more than most observers anticipated. Both the
executive and legislative branches of the U.S. government embraced a commitment
to reduce the federal deficit and U.S. corporations continued to produce strong
profitability. As a result, those who owned financial assets enjoyed strong
performance without having this performance eroded or undermined by the threats
of an overheated economy, creeping inflation or unbridled federal spending.
How could U.S. corporations produce strong profits without the pricing power of
inflation, the tail wind of economic strength or the catalyst of government
spending? Clearly, productivity and restructuring played an important role as
U.S. companies expanded margins. Moreover, profits earned abroad helped to
expand earnings for many companies. And the technology sector of the economy
played an important role as computers and telecommunications helped reshape many
companies.
On the international front, foreign stock markets lagged behind the U.S. equity
bull market. Foreign bond markets, with the exception of Japan, performed in
line with the U.S. bond market, providing double digit returns for bond
investors. A closer look at stock market facts actually show that foreign market
returns for 1995 were in line with their 1994 returns when foreign markets
outperformed the U.S. market by a sizable margin. The generally low correlation
between the U.S. and foreign stock markets continues to provide opportunities
for the portfolio diversification desired by many prudent investors. It is the
primary reason that diversifying overseas has become an important asset
allocation decision today.
The year also produced a record number of strategic mergers both domestically
and internationally. In numerous industries, companies forged ties in order to
build long-term profitability. Among others, Banking, Broadcasting, Basic
Industry, Software and Health Care experienced strong deal activity. Unlike
prior merger cycles, most of these deals were not merely the result of financial
engineering.
Overall, 1995 was an important reminder regarding the value of long-term
investing. As we entered 1995, investors might have been discouraged by the
meager U.S. returns of the prior year. Moreover, some investors might have been
tempted to take profits early in the year as the U.S. rally unfolded. The
winners in 1995 appear to have been those individuals and institutions with the
patience and vision for the long haul.
1
<PAGE> 98
FINANCIAL OUTLOOK
Investors can reap significant rewards when long-term investment discipline
intersects with ideal market conditions. This was the story for 1995.
But what about 1996? Must a bear market necessarily follow the bull market of
1995? Can interest rates continue to fall (and bond prices rise) and stocks
continue to rally at a torrid pace? We do not think that a strong bull market
necessarily must be followed by a big market sell-off. As long as the financial
environment remains favorable, prices can continue to appreciate. However, we do
not anticipate the pace of appreciation to be nearly as rapid or steady.
What about investing overseas? Should we expect a reversal of last year with
foreign stock markets outperforming U.S. stock markets in 1996? Over the long
term, there is a close correlation between real economic growth rates achieved
by a country and the performance of that country's stock market. Many of the
world's fastest growing economies are located in the Pacific Rim and it is here
where we see some of the most exciting opportunities for 1996 and beyond. We
also see opportunities in Japan, the world's largest economy and stock market
outside the United States, as it recovers from its recent problems.
Fundamentally, the fast growing Pacific Rim markets should outperform other
world markets, while the more developed countries will be reacting to the same
investment environment that exists in the United States.
While moderate economic conditions, low inflation and fiscal restraint are
likely to persist in 1996, corporate profitability is likely to slow. As a
result, we should not expect to see a market rally that is as broad as 1995, and
we should expect to see periodic corrections in both stocks and bonds. However,
even without strong earnings as an ally, the general market environment should
be positive enough to provide the potential for reasonable returns for investors
in the new year. Of course, it is not possible to predict market activity with
any certainty.
Thank you for placing your confidence in Nations Fund. We hope the information
contained in this report proves valuable as you pursue your investment goals.
Sincerely,
/s/ A. MAX WALKER
- ----------------------
A. Max Walker
President and Chairman
of the Board
November 30, 1995
2
<PAGE> 99
We are pleased to present the following general investment strategies that
investors may want to consider. Specific investment decisions should always be
based on an analysis of your individual financial goals, tolerance for risk, and
investment timeframe.
PREPARE FOR 1996 WITH A
QUICK FINANCIAL REVIEW
- --------------------------------------------------------------------------------
Nineteen hundred ninety-five was an exciting year for investors. The Dow Jones
Industrial Average (DJIA) surged past the 5000 mark, breaking record after
record along the way. The National Association of Securities Dealers Automated
Quotations system (NASDAQ), Standard & Poor's Corporation 500 Composite Stock
Price Index (S&P 500) and New York Stock Exchange (NYSE) indices also reached
record levels. During this same period, falling interest rates resulted in a
bond rally, driving bond prices up and bond yields down.
DO CHANGES IN MARKET CONDITIONS WARRANT CHANGES IN YOUR
INVESTMENT STRATEGY?
Not necessarily. Short-term market performance should mean very little if your
investment goals are long-term in nature. For example, before leaping to take
profits when the stock market reaches new highs, as a long-term investor, you
should always consider why you invested in stocks in the first place.
If you're seeking long-term gains, a dramatic shift in your strategy today may
lead to difficult decisions later regarding when to get back into the stock
market -- something that is very difficult to time. That's why most financial
advisers encourage a proactive, rather than reactive, approach to investing. A
proactive approach involves careful planning, goal setting and a long-term
outlook.
As you begin to put your financial affairs in order for the new year, consider
the following:
HAVE YOUR INVESTMENT OBJECTIVES CHANGED?
A new job, retirement, the birth of a child or loss of a loved one are among the
many lifestyle changes that can have a significant impact on your finances.
Perhaps you need to establish a college fund for a child or grandchild. Or, as
you're approaching retirement, you're seeking a more conservative investment
strategy geared toward asset preservation. These are valid reasons to reassess
your investment goals and objectives as well as how your assets are allocated
among the various investment classes.
ARE YOUR INVESTMENT ASSETS PROPERLY ALLOCATED?
Maintaining a portfolio that is adequately diversified among the primary asset
classes is an important investment principle. In fact, according to an
independent study of 82 pension funds over a 10-year period, over 91% of an
investment portfolio's return is driven by asset allocation.*
CAN YOU REDUCE YOUR TAXABLE INCOME?
An inheritance, a significant salary increase or relocating to another state can
impact your tax situation. If you need to reduce the amount of your income that
is subject to taxes, consider tax-exempt investments. Investing in municipal
bond funds may be one effective choice because the income you earn on municipal
bond funds is generally exempt from federal income taxes.** Also state-specific
municipal bond funds seek income that is exempt from both federal, state and
local income taxes.
- ---------------
* Source: Financial Analysts Journal, May/June 1991: Determinants Of Portfolio
Performance II: An Update, by Gary Brinson, Brian Singer and Gilbert Beebower.
** Income derived from municipal bond funds may be subject to state and local
taxes and, for certain investors, may be subject to the federal Alternative
Minimum Tax (AMT).
3
<PAGE> 100
ARE YOUR RETIREMENT PLANS ON TRACK?
Many financial experts agree that you will need 80% of your pre-retirement
income to maintain a comfortable lifestyle during your retirement years.
However, the Social Security Administration reports that many Americans save
only one-third of what they will need. While Social Security benefits are an
important component of retirement assets, most of us realize that these benefits
are not likely to be enough. Even combined with your company pension plan, you
may still fall short. Greater emphasis will continue to be placed on personal
investments to complete the retirement picture.
Proper asset allocation, one of the strongest drivers of portfolio return, is
particularly important where retirement investments are concerned. It's
important to determine if your retirement assets are properly allocated to
provide the growth you need without taking on undue risk.
WHAT'S RIGHT FOR YOU?
Before making any changes in your investment strategy, take time to understand
the relationship between investment risk and investment reward. Generally, the
greater the potential for investment reward, such as growth from stock
investments, the greater the risk. Consider whether your timeframe is adequate
to compensate for potential market downturns.
In determining the level of investment risk you are comfortable with, consider
the following:
- - STOCKS ARE LONG-TERM INVESTMENT VEHICLES. Since stocks offer the strongest
potential for growth among the asset classes, stock market investments are
generally suitable for pursuing long-term investment goals. Investors pursuing
short-term investment goals may wish to consider shifting assets toward
investments with greater price stability.
- - BOND INVESTMENTS OFFER GREATER STABILITY THAN STOCKS, BUT ARE NOT WITHOUT
RISK. The types of risk a bond investor will incur include credit risk and
interest-rate risk, both of which can affect a bond's price and yield. In
addition, while bonds generally are not as volatile as stocks, they also do
not offer the growth potential found in stock market investments. A portfolio
that contains only bond investments may hurt your potential to outpace
inflation over time.
- - INTERNATIONAL STOCKS AND BONDS OFFER GREATER DIVERSIFICATION. Although
international investing presents additional risks such as political, currency
and liquidity risk, the diversification benefits can increase the potential
for higher overall portfolio returns and lower portfolio risk.
- - AVOID PLACING ALL OF YOUR EGGS IN ONE BASKET. Spread your investment dollars
among stock, bond and money market investments to help reduce the risk and
impact of principal loss should a particular investment perform poorly.
4
<PAGE> 101
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 your financial
objectives or market conditions 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 NationsBank, N.A. The family was
designed to accommodate a wide variety of investment objectives across the
risk/reward spectrum.
LOGO
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 1-(800)
982-2271.
- ---------------
* The Nations Fund family also includes Nations Equity Index Fund, which seeks
to match the performance of the S&P 500 before fees and expenses.
5
<PAGE> 102
NATIONS VALUE FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER
The Fund is managed by Sharon Herrmann. Ms. Herrmann joined NationsBank in
1970, and is Senior Vice President and Director of the Value Equity Group. She
holds the designation of Chartered Financial Analyst and is a member of the
Association for Investment Management and Research.
INVESTMENT OBJECTIVE
The Fund's investment objective is to seek long-term capital growth with
income a secondary consideration.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Value Fund Trust A
Shares provided a total return of 34.53%, the strongest performance in its
six-year history.
PORTFOLIO MANAGER OVERVIEW
In the following interview, Ms. Herrmann shares her thoughts on Nations
Value Fund and conditions affecting its performance over the fiscal year ended
November 30, 1995.
PLEASE DESCRIBE HOW THE FUND PERFORMED UNDER THE MARKET CONDITIONS THAT
PREVAILED OVER THE PAST 12 MONTHS.
The stock market had the wind at its back over the last year, thriving in
the favorable environment of low inflation, steady but moderate economic growth,
and the expectation of sound fiscal policy initiatives emanating from Congress
and the White House. This also provided a favorable environment for Nations
Value Fund. The Fund's style focuses on companies selling at low prices relative
to the earnings they are expected to generate. For the majority of companies
owned by the Fund, earnings met or exceeded Wall Street analysts' expectations.
This translated into attractive performance for the Fund.
WHAT SECTORS/STOCK SELECTION IN PARTICULAR WERE FAVORABLE FOR THE FUND?**
The Fund's consistent approach of broad diversification across many
industries and companies, coupled with owning attractively-priced companies
relative to their inherent value, was a winning formula in this strong market
environment. Consumer Staples, Finance, Health Care, Technology, Capital Goods
and Transportation showed gains that were better than the overall market. Stock
selection was rewarded in Technology, specifically semiconductor companies such
as Intel Corporation and Texas Instruments, Inc., which had price increases of
93% and 55%, respectively. The Fund also benefited from a 151% price increase in
Sun Microsystems Inc., a major supplier of network-based computing systems, such
as those utilized by Internet users.
Bank stocks held by the portfolio were also tremendous performers; the
sector as a whole increased 47.7%. Outstanding names were Chemical Bank (in its
pending merger with Chase Manhattan), Crestar Financial Corporation in the
regional bank area and Citicorp in the major money center area. The Fund also
benefited from its hedge against a decline in the Financial sector by investing
in financially sound Energy companies such as Mobil Corporation, Royal Dutch
Petroleum Company and Amoco Corporation.
HOW ARE YOU POSITIONING THE FUND GOING FORWARD?
We believe Nations Value Fund will continue to deliver attractive total
returns relative to the market over the coming year. The portfolio will be
structured to continue to take advantage of companies trading at low prices
relative to the earnings they are expected to generate in a broad array of
sectors, such as Energy, Finance, Utilities, Consumer Staples and
Transportation. Currently, the Fund's valuation level is more attractive than
the overall stock market, selling at a modest price-to-earnings multiple of just
12.5 times weighted average earnings for 1996. This compares favorably with the
S&P 500*** which, according to our estimates, is currently selling at 17 times
1996 earnings.
- ---------------
* The performance shown includes the effect of fee waivers and/or expense
reimbursements by the investment adviser and/or the administrator(s). Such
fee waivers and/or expense reimbursements have the effect of increasing
total return.
** Portfolio holdings are subject to change and may not be representative of
current holdings.
*** Source: Standard & Poor's Corporation. The S&P 500 is a market
capitalization weighted price index composed of 500 widely held common
stocks listed on the New York Stock Exchange, American Stock Exchange and
over-the-counter market.
6
<PAGE> 103
NATIONS FUND TRUST
Nations Value Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Producer Durables ................. 14.7%
Financial Services ................ 12.4%
Energy ............................ 10.9%
Consumer Discretionary ............ 8.8%
Health Care ....................... 8.7%
Auto & Transportation ............. 7.2%
Utilities ......................... 6.2%
Telecommunications ................ 6.2%
Materials & Processing ............ 5.4%
Repurchase Agreement and Other
Assets and Liabilities (Net)..... 5.3%
Consumer Staples .................. 4.9%
Other Common Stocks ............... 4.8%
Technology ........................ 4.5%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 26.51% 34.22%
11/30/95
---------------------
FIVE YEARS
ENDED 14.63% 16.00%
11/30/95
---------------------
INCEPTION
(12/06/89) 12.06% 13.17%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 5.75% charge
</TABLE>
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Value Fund
on December 6, 1989
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Investment
With Distributions Standard &
Date Reinvested Poor's 500
<S> <C> <C>
- ----- -------------------- ----------
12/06/89 $ 9,245 $10,000
02/90 $ 9,286 $ 9,676
05/90 $10,088 $10,627
08/90 $ 9,158 $ 9,571
11/90 $ 9,410 $ 9,653
02/91 $10,913 $11,092
05/91 $11,636 $11,877
08/91 $11,668 $12,141
11/91 $11,179 $11,612
02/92 $12,576 $12,861
05/92 $12,621 $13,045
08/92 $12,490 $13,102
11/92 $13,074 $13,753
02/93 $13,369 $14,229
05/93 $14,031 $14,557
08/93 $14,811 $15,091
11/93 $14,748 $15,139
02/94 $15,679 $15,413
05/94 $15,101 $15,175
08/94 $15,591 $15,915
11/94 $14,723 $15,297
02/95 $15,702 $16,546
05/95 $17,447 $18,234
08/95 $18,626 $19,323
11/95 $19,762 $20,946
</TABLE>
- -------------------
Assumes the deduction of the maximum sales charge of 5.75% and the reinvestment
of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
-------------------------------------
TOP TEN HOLDINGS AS A
% OF NET ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. ITT Corporation 2.5%
2. Bristol-Myers Squibb 2.2
3. First Brands Corporation 2.0
4. BellSouth Corporation 1.9
5. Lockheed Martin Corporation 1.9
6. Raytheon Company 1.8
7. Xerox Corporation 1.8
8. Royal Dutch Petroleum Company, ADR 1.8
9. Mead Corporation 1.8
10. PepsiCo Inc. 1.8
</TABLE>
7
<PAGE> 104
NATIONS FUND TRUST
Nations Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 32.15%* 33.15%
11/30/95
---------------------
INCEPTION
(06/17/92) 14.24% 14.24%
THROUGH
11/30/95
---------------------
*Adjusted Not
for maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Value Fund
on June 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Investment Standard & Poor's
with Distributions 500 Composite
Date Reinvested Stock Price Index
<S> <C> <C>
06/17/92 $10,000 $10,000
08/92 $10,275 $10,196
11/92 $10,733 $10,702
02/93 $10,943 $11,073
05/93 $11,458 $11,328
08/93 $12,078 $11,743
11/93 $12,005 $11,781
02/94 $12,735 $11,994
05/94 $12,245 $11,809
08/94 $12,621 $12,384
11/94 $11,894 $11,904
02/95 $12,656 $12,875
05/95 $14,039 $14,189
08/95 $14,967 $15,037
11/95 $15,837 $16,300
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 28.55% 33.55%
11/30/95
----------------------
INCEPTION
(06/07/93) 13.57% 14.57%
THROUGH
11/30/95
----------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $$10,000
investment in Investor N
Shares of Nations Value Fund
on June 7, 1993 (inception).
Figures for the Standard &
Poor's 500, an unmanaged
index of 500 widely held
common stocks, include
reinvestment of dividends.
<TABLE>
<CAPTION>
Growth of Investment Standard & Poor's
with Distributions 500 Composite
Date Reinvested Stock Price Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,624 $10,367
11/93 $10,565 $10,400
02/94 $11,216 $10,588
05/94 $10,786 $10,425
08/94 $11,126 $10,933
11/94 $10,492 $10,508
02/95 $11,178 $11,366
05/95 $12,401 $12,526
08/95 $13,227 $13,275
11/95 $13,712 $14,390
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
8
<PAGE> 105
NATIONS FUND TRUST
Nations Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 34.53%
11/30/95
---------------------
FIVE YEARS
ENDED 16.16%
11/30/95
---------------------
INCEPTION
(09/19/89) 12.89%
THROUGH
11/30/95
</TABLE>
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Value Fund on
September 19, 1989
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Investment
With Distributions Standard &
Date Reinvested Poor's 500
- ----- -------------------- ----------
<S> <C> <C>
09/89 $10,000 $10,000
11/89 $10,040 $ 9,966
02/90 $ 9,892 $ 9,643
05/90 $10,746 $10,591
08/90 $ 9,756 $ 9,539
11/90 $10,024 $ 9,621
02/91 $11,625 $11,055
05/91 $12,395 $11,837
08/91 $12,430 $12,100
11/91 $11,908 $11,573
02/92 $13,396 $12,818
05/92 $13,445 $13,001
08/92 $13,307 $13,058
11/92 $13,932 $13,707
02/93 $14,265 $14,182
05/93 $14,986 $14,508
08/93 $15,827 $15,040
11/93 $15,770 $15,088
02/94 $16,771 $15,361
05/94 $16,139 $15,124
08/94 $16,685 $15,861
11/94 $15,756 $15,246
02/95 $16,813 $16,490
05/95 $18,693 $18,173
08/95 $19,967 $19,259
11/95 $21,198 $20,876
</TABLE>
- -------------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
9
<PAGE> 106
NATIONS CAPITAL GROWTH FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER
The Fund is managed by Phil Sanders. Mr. Sanders joined NationsBank in
1988, and is Senior Vice President and Portfolio Manager of the Growth Equity
Group. He has been managing Nations Capital Growth Fund since 1995. Prior to
this assignment, he was the Portfolio Manager of Nations Balanced Target
Maturity Fund and Co-Manager of the Value Equity Group. Mr. Sanders is a
Chartered Financial Analyst and a member of the Association for Investment
Management Research.
INVESTMENT OBJECTIVE
The Fund's investment objective is to seek long-term capital appreciation.
PERFORMANCE REVIEW
For the one-year period ended November 30, 1995, Nations Capital Growth
Fund Trust A Shares provided a total return of 30.96%.
PORTFOLIO MANAGER OVERVIEW
In the following interview, Mr. Sanders shares his thoughts on Nations
Capital Growth Fund and conditions affecting its performance over the fiscal
year ended November 30, 1995.
HOW DID THE FUND PERFORM UNDER THE MARKET CONDITIONS THAT PREVAILED DURING THE
REPORTING PERIOD?
Market conditions were generally favorable for the overall stock market and
for growth investors over the past year. Corporate profits were strong,
inflation was relatively benign and interest rates declined. In turn, this
presented a favorable environment for investors in Nations Capital Growth Fund.
WHAT TYPES OF STOCKS DO YOU LOOK FOR?
We look for companies that are well positioned to benefit from sustainable,
secular growth trends currently embedded in the marketplace. These trends can be
associated with demographics, emerging technologies, deregulation, changes in
consumer spending patterns, etc. The companies we invest in tend to be market
leaders and innovators in their respective fields. Furthermore, we look for a
competitive edge that will allow these companies to sustain their attractive
growth rates and potentially report earnings above consensus expectations.
WHAT SECTORS AND SPECIFIC COMPANIES WERE MOST ATTRACTIVE OVER THE REPORTING
PERIOD?*
Three sectors in particular stood out over the past year: Technology,
Health Care and Financials. The Technology sector benefited from an increase in
productivity-driven capital spending, powerful new product cycles and growing
demand for advanced telecommunications services. Within the sector, particular
emphasis was placed on computer networking and semiconductor companies which
have seen a surge in global demand for their products and services. Two specific
companies that stood out over the past year were Intel Corporation and cisco
Systems Inc. Through its introduction of the Pentium microprocessor, Intel has
maintained its status as the global leader in the semiconductor industry. As
such, it continues to benefit from surging demand for personal computers.
Similarly, cisco Systems witnessed accelerating demand for its products and
services as companies invested heavily in developing internal computer networks.
cisco Systems' product line is also a prime beneficiary of the expansion of the
Internet infrastructure.
Adjusting well to the increasingly competitive operating environment in the
Health Care sector, major pharmaceutical companies such as Merck & Company Inc.
and Pfizer Inc. performed very well last year. Bottom-line results benefited
from new product introduction, continued strong demand for existing products and
cost-reduction efforts. Investor sentiment in the industry has also improved
with the reduction in regulatory and political rhetoric that seemed so pervasive
a couple of years ago.
- ---------------
* Portfolio holdings are subject to change and may not be representative of
current holdings.
10
<PAGE> 107
Finally, Banks and other financial services companies performed well over
the past year given the favorable interest-rate environment. In particular,
Citicorp and MGIC Investment Corp. (a leading provider of private mortgage
insurance) were especially strong performers.
HAVE THERE BEEN ANY SIGNIFICANT CHANGES IN THE WAY THE PORTFOLIO IS MANAGED?
We have diversified the Fund's holdings quite a bit more over the past six
months, both increasing the total number of stocks owned and broadening exposure
across more industries. The Technology sector continues to be overweighted
versus the S&P 500, but exposure is well balanced across numerous hardware,
software, networking, semiconductor and telecommunications companies. Commitment
to the Energy sector has also been stepped up through increased exposure to
selective growth opportunities in the natural gas and oil service industries.
WHAT SECTORS LOOK ATTRACTIVE GOING FORWARD?
We still see attractive long-term investment opportunities in Technology.
This sector continues to benefit from a multitude of positive trends such as an
increased focus on productivity driven capital spending, powerful new product
cycles, the proliferation of multi-media PCs into the consumer market and both
deregulation and emerging competition in the telecommunications industry.
Despite a recent slowdown in unsustainable high growth rates and some expected
volatility in the group, we believe the sector's long-term fundamentals remain
very favorable.
Also, we still see opportunities in many high quality Health Care issues
that possess attractive valuations and favorable earnings revision trends. The
group's solid fundamentals and relatively visible earnings outlook appears
increasingly appealing in the current slow growth economic environment. Finally,
despite a generally weak retail environment, we are attracted to certain home
improvement and office supply superstore companies that are well positioned to
benefit from changing consumer spending patterns and industry consolidation
trends.
11
<PAGE> 108
NATIONS FUND TRUST
Nations Capital Growth Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Technology ........................... 16.6%
Telecommunications ................... 14.3%
Health Care .......................... 13.0%
Producer Durables .................... 12.3%
Financial Services ................... 11.0%
Energy ............................... 9.2%
Consumer Discretionary ............... 9.1%
Repurchase Agreement and Other
Assets and Liabilities (Net) ......... 4.5%
Consumer Staples ..................... 3.7%
Materials & Processing ............... 3.4%
Other Common Stocks .................. 2.9%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -----------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------
<S> <C> <C>
YEAR ENDED 23.19% 30.70%
11/30/95
----------------------
INCEPTION
(10/02/92) 11.25% 13.36%
THROUGH
11/30/95
----------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 5.75% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Capital
Growth Fund on October 2,
1992 (inception). Figures
for the Standard & Poor's
500, an unmanaged index of
500 widely held common
stocks, include reinvestment
of dividends.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Standard & Poor's
Date Reinvested 500
<S> <C> <C>
10/02/92 $ 9,425 $10,000
11/92 $10,056
02/93 $10,100 $10,346
05/93 $10,125 $10,584
08/93 $10,448 $10,973
11/93 $10,515 $11,008
02/94 $11,122 $11,207
05/94 $10,658 $11,034
08/94 $11,101 $11,572
11/94 $10,718 $11,122
02/95 $11,155 $12,030
05/95 $12,119 $13,258
08/95 $13,379 $14,050
11/95 $14,009 $15,801
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
-------------------------------------
TOP TEN HOLDINGS AS A
% OF NET ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. General Electric Company 2.6%
2. Mobil Corporation 2.2
3. Procter & Gamble Company 2.2
4. cisco Systems Inc. 2.2
5. Emerson Electric Company 2.1
6. AlliedSignal Inc. 2.0
7. Intel Corporation 1.9
8. Johnson & Johnson 1.8
9. PepsiCo Inc. 1.8
10. Applied Materials Inc. 1.7
</TABLE>
12
<PAGE> 109
NATIONS FUND TRUST
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 28.61%* 29.61%
11/30/95
---------------------
INCEPTION
(10/02/92) 12.48% 12.48%
THROUGH
11/30/95
---------------------
*Adjusted Not
for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Capital
Growth Fund on October 2,
1992 (inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth of Investment Standard & Poor's
with Distributions 500 Composite
Date Reinvested Stock Price Index
<S> <C> <C>
10/02/92 $10,000 $10,000
11/92 $10,670 $10,375
02/93 $10,671 $10,734
05/93 $10,681 $10,981
08/93 $11,005 $11,384
11/93 $11,055 $11,420
02/94 $11,672 $11,627
05/94 $11,169 $11,448
08/94 $11,601 $12,006
11/94 $11,189 $11,540
02/95 $11,620 $12,482
05/95 $12,598 $13,755
08/95 $13,885 $14,577
11/95 $14,502 $15,801
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 24.80% 29.80%
11/30/95
---------------------
INCEPTION
(06/07/93) 12.78% 13.79%
THROUGH
11/30/95
---------------------
Adjusted Not
for maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Capital
Growth Fund on June 7, 1993
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth of Investment Standard & Poor's
with Distributions 500 Composite
Date Reinvested Stock Price Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,448 $10,367
11/93 $10,495 $10,400
02/94 $11,069 $10,588
05/94 $10,594 $10,425
08/94 $11,012 $10,933
11/94 $10,613 $10,508
02/95 $11,030 $11,366
05/95 $11,955 $12,526
08/95 $13,182 $13,275
11/95 $13,476 $14,390
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
LOGO
LOGO
13
<PAGE> 110
NATIONS FUND TRUST
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 30.96%
11/30/95
---------------------
INCEPTION
(09/30/92) 13.61%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Capital Growth
Fund on September 30, 1992
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of
Investment with
Distributions Standard &
Date Reinvested Poor's 500
- ---- --------------- ----------
<S> <C> <C>
09/30/92 $10,000 $10,000
11/92 $10,680 $10,000
02/93 $10,729 $10,346
05/93 $10,760 $10,584
08/93 $11,119 $10,973
11/93 $11,197 $11,008
02/94 $11,838 $11,207
05/94 $11,360 $11,034
08/94 $11,839 $11,572
11/94 $11,437 $11,122
02/95 $11,910 $12,030
05/95 $12,945 $13,258
08/95 $14,308 $14,050
11/95 $14,978 $15,801
</TABLE>
- ----------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
LOGO
14
<PAGE> 111
NATIONS EMERGING GROWTH FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER
The Fund is managed by Jack Smiley. Mr. Smiley has over 25 years of
investment experience. He joined NationsBank in 1980, and is a Senior Vice
President and Equity Portfolio Manager of the Growth Equity Group. Mr. Smiley
earned his Chartered Financial Analyst designation in 1984.
INVESTMENT OBJECTIVE
The Fund's investment objective is to seek capital appreciation.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Emerging Growth
Fund Trust A Shares provided a total return of 29.95%.
PORTFOLIO MANAGER OVERVIEW
In the following interview, Mr. Smiley shares his thoughts on Nations
Emerging Growth Fund and conditions affecting its performance over the fiscal
year ended November 30, 1995.
BRIEFLY DESCRIBE THE FUND'S INVESTMENT STYLE.
The Fund looks for companies with less than $1 billion in sales that have
very attractive earnings growth rates. The Fund also has a valuation discipline
that signals when a stock has become too expensive relative to companies with
similar growth rates and, thus, should be sold.
HOW DID MARKET CONDITIONS AFFECT THE FUND'S PERFORMANCE?
The stock market thrived in the favorable environment of moderate economic
growth and low inflation. These factors, combined with low interest rates, also
provided for an accommodating bond market: price-to-earnings multiples expanded,
which increased the expected earnings growth potential for fast-growing
companies. However, the Fund's performance was restrained a bit due to the
valuation discipline. Many of the stocks that were up 100%-150% in 1995 had
higher price-to-earnings multiples--higher prices relative to the earnings they
were expected to generate--than we were willing to pay. We saw risk in some of
those stocks and did not purchase them. For that reason, performance was
restrained.
WHAT SECTORS AND TYPES OF COMPANIES WERE MOST ATTRACTIVE?
The Fund benefited from the Telecommunications sector, particularly
networking companies involved in technologies that link facilities to each other
for voice, data, and video communications. In Health Care, physician practice
management companies were good performers. These companies buy and manage
medical practices so doctors can concentrate on performing their medical
specialties. They also allow the doctors to be competitive and negotiate fees
with the health maintenance organizations. In the Services sector, the Fund
benefited from companies that provide information technology to hospitals and
practice management. Recordkeeping, communications and software systems enable
the hospitals and doctors to be better managed.
WHAT SECTORS AND INDUSTRIES LOOK FAVORABLE/LESS FAVORABLE GOING FORWARD?
Those areas that have been favorable over the past year continue to show
strong earnings growth momentum. Health Care information systems,
telecommunications and niche-theme restaurant chains all look good. Another
exciting industry group is educational and recreational software for personal
computers. In the latter part of 1996, shopping on the Internet will become
available. Instead of purchasing from a catalog, consumers will simply click on
an advertisement to buy an item.
Less attractive sectors include Regional Banks, which appear overvalued and
expensive, and Retailing, where profits are under pressure.
- ---------------
* The performance shown includes the effect of fee waivers and/or expense
reimbursements by the investment adviser and/or the administrator(s). Such fee
waivers and/or expense reimbursements have the effect of increasing total
return.
15
<PAGE> 112
LARGE-CAP STOCKS TYPICALLY HAVE OUTPERFORMED SMALL-CAP STOCKS OVER THE PAST
YEAR. DO YOU THINK THIS WILL CHANGE OVER THE NEXT 12 MONTHS?
Yes, I do. In fact, I believe small-caps will outperform large-caps in the
next six to twelve months. Price-to-earnings multiples on many large-cap stocks
are selling at 100% of their growth rates, while the price-to-earnings multiples
on small-cap stocks are selling at a discount to their growth rates. In
addition, we believe interest rates will decline and inflation will be low,
which will benefit the smaller company stocks.
16
<PAGE> 113
NATIONS FUND TRUST
Nations Emerging Growth Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Consumer Discretionary ............ 19.5%
Technology ........................ 16.5%
Health Care ....................... 14.2%
Producer Durables ................. 11.7%
Repurchase Agreement and Other
Assets and Liabilities (Net) .... 10.2%
Telecommunications ................ 9.7%
Energy ............................ 6.8%
Financial Services ................ 4.3%
Consumer Staples .................. 2.5%
Other Common Stocks ............... 2.2%
Auto & Transportation ............. 1.2%
Materials & Processing ............ 1.2%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 22.20% 29.65%
11/30/95
---------------------
INCEPTION
(12/10/92) 12.61% 14.87%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 5.75% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Emerging
Growth Fund on December 10,
1992 (inception). Figures
for the Standard & Poor's
500, an unmanaged index of
500 widely held common
stocks, include reinvestment
of dividends. Figures for
the Standard & Poor's
Smallcap 600 Index, which
measures the performance of
selected U.S. stocks with a
small market capitalization,
include reinvestment of
dividends.
*The annual report for the
fiscal year ended November
30, 1994 compared the Fund's
performance to the Standard
& Poor's 500. The benchmark
for the Fund was changed to
the Standard & Poor's
Smallcap 600 Index which is
a more appropriate index
because the Fund is a small
market capitalization fund.
The Standard & Poor's 500,
on the other hand, measures
the performance of the
stocks of companies with a
large market capitalization.
<TABLE>
<CAPTION>
Growth of Investment
With Distributions Standard & Poor's Standard &
Date Reinvested Smallcap 600 Index Poor's 500
<S> <C> <C> <C>
12/10/92 $ 9,245 $10,000 $10,000
02/93 $ 9,273 $10,303 $10,346
05/93 $ 9,611 $10,830 $10,584
08/93 $10,194 $11,563 $10,973
11/93 $10,366 $11,748 $11,008
02/94 $11,288 $12,397 $11,207
05/94 $10,262 $11,417 $11,034
08/94 $11,085 $11,849 $11,572
11/94 $10,978 $11,195 $11,122
02/95 $11,220 $11,737 $12,030
05/95 $11,964 $12,398 $13,258
08/95 $13,721 $14,348 $14,050
11/95 $14,234 $14,506 $15,230
</TABLE>
- -------------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
-------------------------------------
TOP TEN HOLDINGS AS A
% OF NET ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. HBO & Company 1.6%
2. Stryker Corporation 1.6
3. Callaway Golf Company 1.5
4. Boston Chicken Inc. 1.5
5. Aspect Telecommunications Corporation 1.4
6. Norwest Corporation 1.4
7. BJ Services Inc. 1.4
8. Symbol Technologies Inc. 1.4
9. Mylan Labs, Inc. 1.4
10. Just For Feet Inc. 1.3
</TABLE>
17
<PAGE> 114
NATIONS FUND TRUST
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 27.67%* 28.67%
11/30/95
---------------------
INCEPTION
(12/18/92) 14.08% 14.08%
THROUGH
11/30/95
---------------------
*Adjusted Not
for maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Emerging
Growth Fund on December 18,
1992 (inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends. Figures for the
Standard & Poor's Smallcap
600 Index, which measures
the performance of selected
U.S. stocks with a small
market capitalization,
include reinvestment of
dividends.
*The annual report for the
fiscal year ended November
30, 1994 compared the Fund's
performance to the Standard
& Poor's 500. The benchmark
for the Fund was changed to
the Standard & Poor's
Smallcap 600 Index which is
a more appropriate index
because the Fund is a small
market capitalization fund.
The Standard & Poor's 500,
on the other hand, measures
the performance of the
stocks of companies with a
large market capitalization.
<TABLE>
<CAPTION>
Growth of Standard & Poor's
Investment with Smallcap Standards & Poor's
Date Distributions Reinvested 600 Index 500
<S> <C> <C> <C>
12/18/92 $10,000 $10,000 $10,000
02/93 $ 9,808 $ 9,959 $10,221
05/93 $10,152 $10,468 $10,456
08/93 $10,748 $11,177 $10,840
11/93 $10,900 $11,356 $10,874
02/94 $11,855 $11,983 $11,071
05/94 $10,759 $11,036 $10,900
08/94 $11,599 $11,453 $11,431
11/94 $11,466 $10,821 $10,988
02/95 $11,701 $11,345 $11,885
05/95 $12,445 $11,984 $13,097
08/95 $14,243 $13,869 $13,880
11/95 $14,753 $14,022 $15,046
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
18
<PAGE> 115
NATIONS FUND TRUST
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 23.75% 28.75%
11/30/95
---------------------
INCEPTION
(06/07/93) 16.25% 17.21%
THROUGH
11/30/95
---------------------
Adjusted Not
for maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Emerging
Growth Fund on June 7, 1993
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends. Figures for the
Standard & Poor's Smallcap
600 Index, which measures
the performance of selected
U.S. stocks with a small
market capitalization,
include reinvestment of
dividends.
*The annual report for the
fiscal year ended November
30, 1994, compared the
Fund's performance to the
Standard & Poor's 500. The
benchmark for the Fund was
changed to the Standard &
Poor's Smallcap 600 Index
which is a more appropriate
index because the Fund is a
small market capitalization
fund. The Standard & Poor's
500, on the other hand,
measures the performance of
the stocks of companies with
a large market
capitalization.
<TABLE>
<CAPTION>
Growth of Standard & Poor's
Investment with Smallcap Standards & Poor's
Date Distributions Reinvested 600 Index 500
<S> <C> <C> <C>
06/07/93 $10,000 $10,000 $10,000
08/93 $10,800 $10,677 $10,367
11/93 $10,951 $10,848 $10,400
02/94 $11,907 $11,477 $10,588
05/94 $10,811 $10,543 $10,425
08/94 $11,651 $10,941 $10,933
11/94 $11,518 $10,337 $10,508
02/95 $11,753 $10,838 $11,366
05/95 $12,509 $11,448 $12,526
08/95 $14,308 $13,249 $13,275
11/95 $14,529 $13,395 $14,390
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
19
<PAGE> 116
NATIONS FUND TRUST
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95*
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 29.95%
11/30/95
---------------------
INCEPTION
(12/04/92) 14.59%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Emerging Growth
Fund on December 4, 1992
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends. Figures for the
Standard & Poor's Smallcap
600 Index, which measures
the performance of selected
U.S. stocks with a small
market capitalization,
include reinvestment of
dividends.
*The annual report for the
fiscal year ended November
30, 1994 compared the Fund's
performance to the Standard
& Poor's 500. The benchmark
for the Fund was changed to
the Standard & Poor's
Smallcap 600 Index which is
a more appropriate index
because the Fund is a small
market capitalization fund.
The Standard & Poor's 500,
on the other hand, measures
the performance of the
stocks of companies with a
large market capitalization.
<TABLE>
<CAPTION>
Growth of
Investment with Standard & Poor's
Distributions Smallcap 600 Standard &
Date Reinvested Index Poor's 500
- ---- --------------- --------------- -----------
<S> <C> <C> <C>
12/04/92 $10,000 $10,000 $10,000
02/93 $ 9,712 $10,303 $10,346
05/93 $10,080 $10,830 $10,584
08/93 $10,701 $11,563 $10,973
11/93 $10,881 $11,748 $11,008
02/94 $11,857 $12,397 $11,207
05/94 $10,793 $11,417 $11,034
08/94 $11,664 $11,849 $11,572
11/94 $11,563 $11,195 $11,122
02/95 $11,827 $11,737 $12,030
05/95 $12,616 $12,398 $13,258
08/95 $14,468 $14,348 $14,050
11/95 $15,025 $14,506 $15,230
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
20
<PAGE> 117
NATIONS BALANCED ASSETS FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER
The Fund is managed by Julie Hale. Ms. Hale joined NationsBank in 1991. She
is Vice President, Manager of the Balanced Assets Group and Co-Manager of the
Equity Income Group. Ms. Hale has 13 years' experience in investment research
and portfolio management. She is a Chartered Financial Analyst and a member of
the Association for Investment Management and Research.
INVESTMENT OBJECTIVE
The Fund's investment objective is to seek total investment return through
a combination of growth of capital and current income, consistent with the
preservation of capital.
PERFORMANCE REVIEW
For the one-year period ended November 30, 1995, Nations Balanced Assets
Fund Trust A Shares provided a total return of 25.27%.
PORTFOLIO MANAGER OVERVIEW
In the following interview, Ms. Hale shares her thoughts on Nations
Balanced Assets Fund and conditions affecting its performance over the fiscal
year ended November 30, 1995.
BRIEFLY DESCRIBE THE MARKET CONDITIONS THAT PREVAILED OVER THE PAST 12 MONTHS.
The most important factor over the past year was declining interest rates,
driven by both moderate economic growth and low inflation. In this environment,
both the stock and bond markets benefited, as did Nations Balanced Assets Fund.
WHAT SHIFTS WERE MADE IN THE PORTFOLIO'S OVERALL ASSET ALLOCATION DURING THE
REPORTING PERIOD?
Since the beginning of the reporting period, we raised the Fund's equity
position from 55% of the portfolio to 58%, and substantially lowered the bond
position from 40% to 32%. The Fund's cash position was raised slightly, to
approximately 10% of the portfolio.
ON THE EQUITY SIDE, WHAT DO YOU LOOK FOR WHEN YOU PURCHASE COMPANIES?
We seek out high-quality companies that have strong long-term fundamentals
and earnings growth potential, and are trading at favorable prices relative to
their earnings outlook.
WHERE DID YOU FIND STRONG EQUITY PERFORMANCE?*
The Fund was substantially overweighted in the Technology sector this past
year, which enhanced equity returns. The Fund's best-performing stocks in this
group were networking companies, which provide products and services that allow
computers to communicate and share data. Strong performers included Bay
Networks, Cabletron Systems and cisco Systems Inc.
WHAT WERE THE LESS FAVORABLE SECTORS?
Energy and Utilities lagged the market. The Fund had significantly less
exposure than the S&P 500 in these sectors, which helped performance.
WHERE DID YOU FIND GOOD VALUE IN THE BOND MARKET?
In the first quarter of the fiscal year, the Fund's performance lagged
slightly in the fixed-income market based on a bias toward higher-quality,
shorter-term debt, which provided lower yields. However, as the year progressed,
the Fund gained ground by adding higher-yielding, longer-term U.S. Treasuries.
The Fund also benefited from lessening its position in mortgage securities,
which tend to lag in a bond market rally.
- ---------------
* Portfolio holdings are subject to change and may not be representative of
current holdings.
21
<PAGE> 118
HOW ARE YOU POSITIONING THE FUND GOING FORWARD?
The asset allocation mix is 58% stocks, 32% bonds and 10% cash. We have
increased the Fund's exposure to equities versus bonds as interest rates
declined, and our security selection has become more defensive. The equity
portion of the Fund has become more diversified by economic sectors. Technology
is modestly overweighted based on favorable long-term fundamentals and market
valuations, but we have substantially reduced the weighting over the past year.
Equity purchases have been focused in the traditionally defensive sectors of the
market, including Energy and Electric Utilities, where the Fund had minimal
exposure versus the S&P 500 over the reporting period. We favor domestic oils,
natural gas and oil service companies in the Energy sector. In the fixed-income
arena, we have reduced the Fund's exposure to corporate bonds based on their
strong performance in 1995, and because the yield differential between
corporates and U.S. Treasuries remains narrow.
22
<PAGE> 119
NATIONS FUND TRUST
Nations Balanced Assets Fund
- ---------------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Common Stocks............................... 58.0%
U.S. Treasury Securities.................... 14.6%
Repurchase Agreement and Other Assets
and Liabilities (Net)....................... 9.6%
Mortgage-Backed Securities.................. 8.9%
Corporate Bonds and Notes................... 5.6%
Asset-Backed Securities..................... 3.0%
Foreign Bond................................ 0.3%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
- -------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 17.82% 25.01%
11/30/95
---------------------
INCEPTION
(10/02/92) 8.33% 10.37%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 5.75% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Balanced
Assets Fund on October 2,
1992 (inception). Figures
for the Lehman Brothers
Aggregate Bond Index, which
is comprised of the
Government Corporate Bond
Index, the Asset-Backed
Securities Index and the
Mortgage-Backed Securities
Index and includes U.S.
Treasury issues, agency
issues, corporate bond
issues and mortgage-backed
issues, include reinvestment
of dividends. Figures for
the Standard & Poor's 500,
an unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Lehman Brothers
Investment with Aggregate Standard & Poor's
Date Distributions Reinvested Bond Index 500
<S> <C> <C> <C>
10/02/92 $ 9,425 $10,000 $10,000
11/92 $ 9,651 $ 9,871 $10,375
02/93 $10,023 $10,398 $10,734
05/93 $10,179 $10,527 $10,981
08/93 $10,555 $10,967 $11,384
11/93 $10,513 $10,845 $11,420
02/94 $10,842 $10,959 $11,627
05/94 $10,340 $10,602 $11,448
08/94 $10,629 $10,602 $12,006
11/94 $10,300 $10,610 $11,540
02/95 $10,765 $11,154 $12,482
05/95 $11,584 $11,819 $13,755
08/95 $12,234 $12,023 $14,577
11/95 $12,877 $12,482 $15,801
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holding
-------------------------------------
TOP TEN HOLDINGS AS A
% OF NET ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. U.S. T-Bond, 12.750% 11/15/10 4.1%
2. U.S. T-Bond, 12.500% 08/15/14 2.7
3. GNMA, 8.000% 06/15/22 - 07/15/25 (4 Pools) 2.7
4. FNMA, 7.000% 07/01/25 - 09/01/25 (3 Pools) 2.6
5. U.S. T-Note, 5.125% 04/30/98 2.0
6. U.S. T-Note, 8.250% 07/15/98 1.9
7. U.S. T-Bond, 8.750% 08/15/20 1.6
8. Emerson Electric Company 1.0
9. Capital Cities/ABC Inc. 1.0
10. U.S. T-Bond, 8.875% 08/15/17 1.0
</TABLE>
23
<PAGE> 120
NATIONS FUND TRUST
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 23.03%* 24.03%
11/30/95
---------------------
INCEPTION
(10/02/92) 9.54% 9.54%
THROUGH
11/30/95
---------------------
Not
*Adjusted adjusted
for maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Balanced
Assets Fund on October 2,
1992 (inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. Figures for the
Lehman Brothers Aggregate
Bond Index, which is
comprised of the Government
Corporate Bond Index, the
Asset-Backed Securities
Index and the
Mortgage-Backed Securities
Index and includes U.S.
Treasury issues, agency
issues, corporate bond
issues and mortgage-backed
issues, include reinvestment
of dividends. Figures for
the Standard & Poor's 500,
an unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Lehman Brothers
Investment with Aggregate Standard & Poor's
Date Distributions Reinvested Bond Index 500
<S> <C> <C> <C>
10/02/92 $10,000 $10,000 $10,000
11/92 $10,230 $ 9,871 $10,375
02/93 $10,605 $10,398 $10,734
05/93 $10,738 $10,527 $10,981
08/93 $11,112 $10,967 $11,384
11/93 $11,054 $10,945 $11,420
02/94 $11,381 $10,959 $11,627
05/94 $10,827 $10,602 $11,448
08/94 $11,108 $10,602 $12,006
11/94 $10,754 $10,610 $11,540
02/95 $11,215 $11,154 $12,482
05/95 $12,038 $11,819 $13,755
08/95 $12,692 $12,023 $14,577
11/95 $13,338 $12,482 $15,801
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
24
<PAGE> 121
NATIONS FUND TRUST
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 19.35% 24.35%
11/30/95
---------------------
INCEPTION
(6/7/93) 8.49% 9.56%
THROUGH
11/30/95
---------------------
Not
Adjusted adjusted
for maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Balanced
Assets Fund on June 7, 1993
(inception). Figures for the
Lehman Brothers Aggregate
Bond Index, which is
comprised of the Government
Corporate Bond Index, the
Asset-Backed Securities
Index and the
Mortgage-Backed Securities
Index and includes U.S.
Treasury issues, agency
issues, corporate bond
issues and mortgage-backed
issues, include reinvestment
of dividends. Figures for
the Standard & Poor's 500,
an unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of
Investment with Lehman Brothers
Distributions Aggregate Standard &
Date Reinvested Bond Index Poor's 500
- ---- --------------- --------------- ----------
<S> <C> <C> <C>
06/07/93 $10,000 $10,000 $10,000
08/93 $10,392 $10,418 $10,367
11/93 $10,345 $10,397 $10,400
02/94 $10,660 $10,410 $10,588
05/94 $10,140 $10,071 $10,425
08/94 $10,420 $10,261 $10,933
11/94 $10,086 $10,079 $10,508
02/95 $10,528 $10,595 $11,366
05/95 $11,317 $11,227 $12,526
08/95 $11,938 $11,421 $13,275
11/95 $12,241 $11,857 $14,390
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
25
<PAGE> 122
NATIONS FUND TRUST
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 25.27%
11/30/95
---------------------
INCEPTION
(09/30/92) 10.63%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Balanced Assets
Fund on September 30, 1992
(inception). Figures for the
Lehman Brothers Aggregate
Bond Index, which is
comprised of the Government
Corporate Bond Index, the
Asset-Backed Securities
Index and the
Mortgage-Backed Securities
Index and includes U.S.
Treasury issues, agency
issues, corporate bond
issues and mortgage-backed
issues, include reinvestment
of dividends. Figures for
the Standard & Poor's 500,
an unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Investment Lehman Brothers
with Distributions Aggregate Standard & Poor's
Date Reinvested Bond Index 500
<S> <C> <C> <C>
09/30/92 $10,000 $10,000 $10,000
11/92 $10,240 $ 9,871 $10,375
02/93 $10,646 $10,398 $10,734
05/93 $10,818 $10,527 $10,981
08/93 $11,222 $10,967 $11,384
11/93 $11,184 $10,945 $11,420
02/94 $11,550 $10,959 $11,627
05/94 $11,010 $10,602 $11,448
08/94 $11,334 $10,802 $12,006
11/94 $10,991 $10,610 $11,540
02/95 $11,494 $11,154 $12,482
05/95 $12,375 $11,819 $13,755
08/95 $13,075 $12,023 $14,577
11/95 $13,769 $12,482 $15,801
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
26
<PAGE> 123
NATIONS EQUITY INDEX FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER
Greg Golden oversees the management of the Fund. Mr. Golden joined
NationsBank in 1989. As Vice President and Portfolio Manager for Structured
Products, Mr. Golden also oversees the management of an array of equity index
products for NationsBank. His other duties include Quantitative Analysis and
Derivatives Management. Mr. Golden is a Chartered Financial Analyst Candidate.
INVESTMENT OBJECTIVE
The investment objective of the Fund is to seek investment results that
correspond, before fees and expenses, to the total return (i.e., the combination
of capital changes and income) of common stocks publicly traded in the United
States, as represented by the Standard & Poor's Composite Stock Price Index (the
"S&P 500 Index" or the "Index").*
PERFORMANCE REVIEW**
For the one-year period ended November 30, 1995, Nations Equity Index Fund
Trust A Shares provided a total return of 36.35%.
Nations Equity Index Fund is comprised of essentially all the companies
within the S&P 500 with market capitalization weights similar to the Index.
Computer programs are used to continuously monitor and rebalance the Fund so as
to "track" the performance of the S&P 500 Index. Portfolio transactions are made
to align the Fund to the S&P 500 Index composition, invest cash and provide for
redemptions. In addition, the Fund seeks to minimize trading costs. Stock index
futures and options also are used to manage cash flows in the Fund.
- ---------------
* Source: "Standard & Poor's 500" is a registered service mark of Standard &
Poor's Corporation, which does not sponsor and is in no way affiliated with
the Nations Equity Index Fund.
** The performance shown includes the effect of fee waivers and/or expense
reimbursement by the investment adviser and/or the administrator(s). Such fee
waivers and/or expense reimbursements have the effect of increasing total
return.
27
<PAGE> 124
NATIONS FUND TRUST
Nations Equity Index Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Financial Services.................... 12.1%
Consumer Discretionary................ 10.0%
Health Care........................... 9.7%
Producer Durables..................... 9.7%
Consumer Staples...................... 9.3%
Telecommunications.................... 9.1%
Energy................................ 8.7%
Repurchase Agreement,
Preferred Stock, U.S. Treasury
Bills and Other Assets and
Liabilities (Net)................... 7.7%
Materials & Processing................ 7.1%
Technology............................ 7.0%
Other Common Stocks................... 5.6%
Auto & Transportation................. 4.0%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 36.35%
11/30/95
---------------------
INCEPTION
(12/15/93) 17.32%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Equity Index Fund
on December 15, 1993
(inception). Figures for the
Standard & Poor's 500, an
unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of
Investment with
Distributions Standard &
Date Reinvested Poor's 500
- ---- --------------- ----------
<S> <C> <C>
12/15/93 $10,000 $10,000
02/94 $10,122 $10,181
05/94 $ 9,963 $10,024
08/94 $10,429 $10,512
11/94 $10,029 $10,104
02/95 $10,838 $10,929
05/95 $11,936 $12,044
08/95 $12,639 $12,764
11/95 $13,675 $13,836
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
-------------------------------------
TOP TEN HOLDINGS AS A
% OF NET ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. General Electric Company 2.3%
2. AT&T Corporation 2.1
3. Exxon Corporation 2.0
4. Coca-Cola Company 2.0
5. Merck & Company Inc. 1.6
6. Phillip Morris Companies Inc. 1.5
7. Royal Dutch Petroleum Company, ADR 1.4
8. Procter & Gamble Company 1.2
9. Johnson & Johnson 1.2
10. Wal-Mart Stores Inc. 1.1
</TABLE>
28
<PAGE> 125
NATIONS DISCIPLINED EQUITY FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER
The Fund is managed by Jeff Moser. Mr. Moser joined NationsBank in 1983, is
a Senior Vice President and has managed Nations Disciplined Equity Fund since
1995. He is a Chartered Financial Analyst and a member of the Association for
Investment Management and Research.
INVESTMENT OBJECTIVE
The Fund's investment objective is to seek long-term capital appreciation.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Disciplined Equity
Fund Trust A Shares provided a total return of 31.13%.
PORTFOLIO MANAGER OVERVIEW
In the following interview, Mr. Moser shares his thoughts on Nations
Disciplined Equity Fund and conditions affecting its performance over the fiscal
year ended November 30, 1995.
PLEASE DESCRIBE THE FUND'S INVESTMENT PHILOSOPHY AND STYLE.
The core premise behind Nations Disciplined Equity Fund is that earnings
momentum drives stock prices. Earnings momentum is the pattern established when
growth in earnings per share increases from one period to the next.
To capture earnings momentum, the Fund uses a proprietary tracking system
that follows a set of rules established for the buy, sell and valuation process.
Essentially, this proprietary model, called ALPHA, does three key things:
identifies stock buying opportunities, ensures the Fund doesn't overpay for them
and signals when to sell a stock. Of course, we validate the entire process by
researching company fundamentals.
HAS THIS STYLE BEEN SUCCESSFUL FOR THE FUND OVER THE REPORTING PERIOD?
The ALPHA earnings momentum model historically has had a very high success
rate for identifying buys and sells. We use the model as a discipline to rise
above the "noise" of conflicting brokerage firm research. It keeps us focused on
earnings momentum and earnings valuation. As a result, the average price paid
relative to the earnings that the companies are expected to generate, is much
less in Nations Disciplined Equity Fund than that of other growth funds.
CAN YOU PROVIDE A FEW SUCCESS STORIES?**
Yes, I'll start with the sell discipline. The Fund owned Silicon Graphics
in the Technology sector, which it bought in April at $36 7/8 per share. Then in
July, our model identified a reduction in forecasted earnings momentum, so the
Fund sold it at $42 per share. With our discipline, a stock must show good
momentum for us to justify keeping it. The sell proved to be a good move, as
Silicon Graphics was trading at $36 per share near the end of November. Another
stock that showed a slowing in earnings momentum through ALPHA, was Ball Corp.
The Fund sold that at $34 1/4 per share in September. On November 30, 1995, Ball
Corp. was trading at around $28 per share.
Good buy stories include NIKE Inc., which the Fund bought at $39 per share
in May and the stock price had risen to $58 per share by the end of the fiscal
reporting period. The Fund bought United Airlines at $115 per share, even after
it had gone up from $90 per share, and continued to own the stock at $210 per
share at the end of November.
- ---------------
* The performance shown includes the effect of fee waivers and/or expense
reimbursements by the investment adviser and/or the administrator(s). Such
fee waivers and/or expense reimbursements have the effect of increasing total
return.
** Portfolio holdings are subject to change and may not be representative of
current holdings.
29
<PAGE> 126
WHAT WERE THE BEST-PERFORMING SECTORS?
Through September, conditions were extremely favorable for earnings
momentum in sectors where the Fund was slightly overweight the S&P 500*:
Technology, Basic Materials and Capital Goods. These sectors have benefited from
capital expenditures in plant and equipment, technology and productivity tools,
as Corporate America seeks to become more efficient and further enhance earnings
growth.
YOU SAID CONDITIONS WERE FAVORABLE THROUGH SEPTEMBER. WHAT HAPPENED AFTER THAT?
In the third quarter, we started to see a slowdown in the growth of
earnings. And, while earnings were growing in sectors such as Technology and
Telecommunications, they weren't growing at an accelerating rate. Therefore,
cyclical stocks -- which tend to rise quickly when the economy turns up and fall
quickly when it turns down -- and stocks in the Technology sector, where the
Fund had maintained an overweight exposure, came under some selling pressure.
Accordingly, we reduced the Fund's exposure to these sectors. It is important to
note that, for risk control, we will never more than double a sector weighting
of the S&P 500 or have less than half its sector weighting.
HOW ARE YOU POSITIONING THE FUND GOING FORWARD?
Overall, we believe the stock market will continue to perform well, but it
will not have the momentum it did in 1995. Therefore, while we see attractive
opportunities through good stock selection, the Fund may have to pay a premium
for stocks with the best consistency and stability in earnings momentum. The
Fund will continue to slightly overweight the S&P 500 in the Technology and
Capital Goods sectors based on our outlook for sustained, slow growth in the
economy.
Less favorable sectors include Utilities, where it's been difficult to find
stocks we want to buy. The Consumer Staples and Retail weighting in the
portfolio will also have less exposure than the S&P 500. In a slow growth
environment, consumer spending will continue to be restrained and retail
companies will not be able to pass along price increases the way they could in
the 1980s.
- ---------------
* Source: Standard & Poor's Corporation. The S&P 500 is a market capitalization
weighted price index composed of 500 widely held common stocks listed on the
New York Stock Exchange, American Stock Exchange and over-the-counter market.
30
<PAGE> 127
NATIONS FUND TRUST
Nations Disciplined Equity Fund
- ---------------------------------------------------
PORTFOLIO BREAKDOWN AS OF 11/30/95
<TABLE>
<S> <C>
Materials & Processing..................... 16.7%
Producer Durables.......................... 13.2%
Health Care................................ 12.2%
Financial Services......................... 11.5%
Energy..................................... 11.4%
Technology................................. 7.3%
Telecommunications......................... 7.1%
Consumer Staples........................... 6.6%
Other Common Stocks........................ 4.7%
Repurchase Agreement and Other
Assets and Liabilities (Net). ............. 4.3%
Consumer Directory......................... 2.5%
Auto & Transportation...................... 2.5%
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 23.51% 31.05%
11/30/95
---------------------
INCEPTION
(07/26/93) 12.44% 15.32%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 5.75% charge
</TABLE>
- ----------------------------
- ----------------------------
Inception is based on The
Capitol Mutual Funds Special
Equity Portfolio Class B
Shares, which were
reorganized into Investor A
Shares of Nations
Disciplined Equity Fund as
of the close of business on
April 29, 1994. The Capitol
Mutual Funds Special Equity
Portfolio Class B Shares
commenced operations on July
26, 1993. The chart to the
right shows the growth in
value of a hypothetical
$10,000 investment in
Investor A Shares of Nations
Disciplined Equity Fund on
July 26, 1993 (inception).
Figures for the Standard &
Poor's 500, an unmanaged
index of 500 widely held
common stocks, include
reinvestment of dividends.
<TABLE>
<CAPTION>
Growth of
Investment with Standard & Poor's
Date Distributions Reinvested 500
<S> <C> <C>
07/26/93 $ 9,425
08/93 $10,649 $10,000
11/93 $10,365 $10,412
02/94 $10,903 $10,600
05/94 $ 9,923 $10,436
08/94 $10,125 $10,945
11/94 $10,048 $10,520
02/95 $10,248 $11,379
05/95 $11,148 $12,540
08/95 $12,392 $13,289
11/95 $13,168 $14,406
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
-------------------------------------
TOP TEN HOLDINGS AS A
% OF NET ASSETS AS OF 11/30/95
<TABLE>
<S> <C> <C>
1. Sun Microsystems Inc. 2.8%
2. Aluminum Company of America 2.6
3. Eastman Chemical Company 2.5
4. Illinois Tool Works Inc. 2.5
5. McDonnell Douglas Corporation 2.5
6. Eastman Kodak Company 2.5
7. Bank of New York Inc. 2.5
8. British Petroleum, ADS 2.5
9. Johnson & Johnson 2.5
10. Williams Companies Inc. 2.5
</TABLE>
31
<PAGE> 128
NATIONS FUND TRUST
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AGGREGATE TOTAL RETURN
------------------------------------
<S> <C>
INCEPTION
(05/10/95) 19.78%*
THROUGH
11/30/95
---------------------
*Adjusted for
maximum contingent
deferred
sales charge
of 1.00%
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations
Disciplined Equity Fund on
May 10, 1995 (inception).
Investor C Shares that are
redeemed within one year of
purchase are subject to a
1.00% contingent deferred
sales charge. Figures for
the Standard & Poor's 500,
an unmanaged index of 500
widely held common stocks,
include reinvestment of
dividends.
<TABLE>
<CAPTION>
Growth of Standard & Poor's 500
Investment with Composite Stock
Date Distributions Reinvested Price Index
<S> <C> <C>
05/10/95 $10,000 $10,000
08/95 $11,398 $10,916
11/95 $11,978 $11,761
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C> <C>
YEAR ENDED 24.94% 29.94%
11/30/95
---------------------
INCEPTION
(05/20/94) 17.80% 20.19%
THROUGH
11/30/95
---------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
- ----------------------------
- ----------------------------
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations
Disciplined Equity Fund on
May 20, 1994 (inception).
Figures for the Standard &
Poor's 500, an unmanaged
index of 500 widely held
common stocks, include
reinvestment of dividends.
<TABLE>
<CAPTION>
Growth of Standard & Poor's 500
Investment with Composite Stock
Date Distributions Reinvested Price Index
<S> <C> <C>
05/20/94 $10,000 $10,000
08/94 $10,298 $10,488
11/94 $10,196 $10,060
02/95 $10,384 $10,903
05/95 $11,269 $12,016
08/95 $12,498 $12,734
11/95 $12,848 $13,803
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual and aggregate total returns are historical in nature and measure
net investment income and capital gain or loss from portfolio investments
assuming reinvestment of dividends.
32
<PAGE> 129
NATIONS FUND TRUST
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
<TABLE>
<CAPTION>
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<S> <C>
YEAR ENDED 31.13%
11/30/95
---------------------
INCEPTION
(10/01/92) 26.46%
THROUGH
11/30/95
</TABLE>
- ----------------------------
- ----------------------------
Inception is based on The
Capitol Mutual Funds Special
Equity Portfolio Class A
Shares, which were
reorganized into Trust A
Shares of Nations
Disciplined Equity Fund as
of the close of business on
April 29, 1994. The Capitol
Mutual Funds Special Equity
Portfolio Class A Shares
commenced operations on
October 1, 1992. The chart
to the right shows the
growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Disciplined
Equity Fund on October 1,
1992 (inception). Figures
for the Standard & Poor's
500, an unmanaged index of
500 widely held common
stocks, include reinvestment
of dividends.
<TABLE>
<CAPTION>
Growth of Investment Standard & Poor's
with Distributions 500 Composite
Date Reinvested Stock Price Index
<S> <C> <C>
10/01/92 $10,000 $10,000
11/92 $12,180 $10,375
02/93 $13,271 $10,734
05/93 $14,808 $10,981
08/93 $17,029 $11,384
11/93 $16,516 $11,420
02/94 $17,373 $11,627
05/94 $15,813 $11,448
08/94 $16,149 $12,006
11/94 $16,027 $11,540
02/95 $16,341 $12,482
05/95 $17,791 $13,755
08/95 $19,787 $14,577
11/95 $21,016 $15,801
</TABLE>
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
33
<PAGE> 130
NATIONS FUND TRUST
Nations Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- 94.7%
AEROSPACE AND DEFENSE -- 5.0%
275,600 Lockheed Martin Corporation....... $ 20,222,150
444,800 Raytheon Company.................. 19,793,600
291,000 Rockwell International
Corporation..................... 14,259,000
--------------
54,274,750
--------------
APPAREL -- 0.4%
230,000 Limited Inc. ..................... 4,111,250
--------------
AUTOMOBILES -- 1.7%
644,200 Ford Motor Company................ 18,198,650
--------------
AUTOMOTIVE ACCESSORIES -- 2.0%
306,800 Echlin Inc. ...................... 11,198,200
257,000 Goodyear Tire & Rubber Company.... 10,890,375
--------------
22,088,575
--------------
BEVERAGES -- 3.1%
207,700 Anheuser-Busch Companies, Inc. ... 13,760,125
355,000 PepsiCo Inc. ..................... 19,613,750
--------------
33,373,875
--------------
BUSINESS EQUIPMENT AND
PERIPHERALS -- 3.1%
145,400 International Business Machines
Corporation..................... 14,049,275
143,800 Xerox Corporation................. 19,718,575
--------------
33,767,850
--------------
CHEMICALS -- BASIC -- 1.7%
107,000 du Pont (E.I.) deNemours & Company.. 7,115,500
259,200 PPG Industries, Inc. ............. 11,761,200
--------------
18,876,700
--------------
CHEMICALS -- SPECIALTY -- 0.5%
152,000 Georgia Gulf Corporation.......... 5,415,000
--------------
COMPUTER MANUFACTURERS -- 1.4%
180,800 Sun Microsystems Inc.+............ 15,209,800
--------------
DIVERSIFIED HEALTH CARE -- 0.7%
227,000 Mallinckrodt Group Inc. .......... 7,746,375
--------------
DRUGS -- 5.3%
296,000 Bristol-Myers Squibb.............. 23,754,000
543,500 Pharmacia & Upjohn Inc. .......... 19,498,062
259,000 Schering-Plough Corporation....... 14,860,125
--------------
58,112,187
--------------
DRUGS -- MEDICAL SUPPLIES -- 2.7%
72,000 Bausch & Lomb Inc. ............... 2,601,000
72,000 Baxter International Inc. ........ 3,024,000
210,600 Becton, Dickinson & Company....... 14,689,350
185,000 Rhone-Poulenc Rorer............... 8,856,875
--------------
29,171,225
--------------
ELECTRIC
UTILITIES -- NON-NUCLEAR -- 6.2%
370,000 Baltimore Gas & Electric
Company......................... 9,851,250
555,061 CINergy Corporation............... 16,374,300
555,000 DPL Inc. ......................... 13,320,000
432,600 GTE Corporation................... 18,439,575
418,400 Northeast Utilities............... 9,989,300
--------------
67,974,425
--------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRICAL EQUIPMENT -- 2.6%
238,000 General Electric Company.......... $ 16,005,500
54,600 Johnson Controls Inc. ............ 3,781,050
345,000 Teradyne Inc.+.................... 9,013,125
--------------
28,799,675
--------------
ELECTRONIC COMPONENTS -- 5.7%
372,000 Arrow Electronics Inc.+........... 17,344,500
398,600 Avnet, Inc. ...................... 18,734,200
195,400 Intel Corporation................. 11,894,975
243,000 Texas Instruments Inc. ........... 14,063,625
--------------
62,037,300
--------------
FINANCE -- SERVICES -- 1.1%
206,000 Bear Stearns Companies Inc. ...... 4,480,500
352,000 Paine Webber Group, Inc. ......... 7,876,000
--------------
12,356,500
--------------
FOOD -- PACKAGED -- 1.4%
237,700 Hershey Foods Corporation......... 14,677,975
--------------
HOUSEHOLD PRODUCTS -- 3.5%
469,100 First Brands Corporation.......... 21,461,325
332,000 Premark International Inc. ....... 16,932,000
--------------
38,393,325
--------------
INDUSTRIAL CONGLOMERATES -- 4.8%
370,600 AlliedSignal Inc. ................ 17,510,850
225,200 ITT Corporation................... 27,615,150
100,000 TRW Inc. ......................... 7,487,500
--------------
52,613,500
--------------
INSURANCE -- 1.6%
117,000 CIGNA Corporation................. 12,870,000
98,000 Kemper Corporation................ 4,826,500
--------------
17,696,500
--------------
LEISURE -- 1.1%
442,500 Mattel, Inc. ..................... 12,390,000
--------------
LIFE AND SPECIALTY
INSURANCE -- 3.9%
269,000 AFLAC, Inc. ...................... 10,961,750
97,700 General Re Corporation............ 14,618,362
369,000 Lincoln National Corporation...... 17,250,750
--------------
42,830,862
--------------
LONG DISTANCE -- 2.2%
266,600 AT&T Corporation.................. 17,595,600
151,500 Sprint Corporation................ 6,060,000
--------------
23,655,600
--------------
METALS -- 0.3%
60,000 Aluminum Company of America....... 3,510,000
--------------
MONEY CENTER BANKS -- 3.5%
195,000 Chemical Banking Corporation...... 11,700,000
212,000 Citicorp.......................... 14,999,000
170,000 First Chicago Corporation......... 11,815,000
--------------
38,514,000
--------------
OIL SERVICES AND EQUIPMENT -- 1.0%
174,200 Schlumberger Ltd.................. 11,061,700
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 131
NATIONS FUND TRUST
Nations Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
PAPER AND FOREST PRODUCTS -- 2.9%
223,000 Bowater, Inc., ADR................ $ 8,864,250
96,000 International Paper Company....... 3,660,000
344,900 Mead Corporation.................. 19,702,413
--------------
32,226,663
--------------
PETROLEUM -- DOMESTIC -- 2.5%
66,000 Ashland Oil, Inc. ................ 2,301,750
157,000 Coastal Corporation............... 5,220,250
233,000 Philips Petroleum Company......... 7,747,250
291,000 Williams Companies Inc. .......... 12,222,000
--------------
27,491,250
--------------
PETROLEUM -- INTERNATIONAL -- 7.4%
166,000 Amoco Corporation................. 11,246,500
36,000 British Petroleum, ADS............ 3,442,500
209,800 Exxon Corporation................. 16,233,275
181,900 Mobil Corporation................. 18,985,812
153,600 Royal Dutch Petroleum Company,
ADR............................. 19,718,400
144,900 Texaco Inc. ..................... 10,722,600
--------------
80,349,087
--------------
PRODUCER GOODS -- MACHINERY -- 1.4%
139,000 Caterpillar Inc. ................. 8,531,125
163,500 Varity Corporation+............... 6,335,625
--------------
14,866,750
--------------
REGIONAL BANKS AND THRIFTS -- 2.3%
276,000 Bank of New York Inc. ............ 13,006,500
27,300 Crestar Financial Corporation..... 1,665,300
195,000 Mellon Bank Corporation........... 10,432,500
--------------
25,104,300
--------------
RETAIL -- FOOD AND DRUGS -- 1.0%
225,000 Safeway Inc.+..................... 10,462,500
--------------
RETAIL -- MAJOR -- 2.1%
362,000 Federated Department Stores
Inc.+........................... 10,543,250
292,000 May Department Stores Company..... 12,738,500
--------------
23,281,750
--------------
RETAIL -- SPECIALTY -- 1.1%
401,500 Circuit City Stores Inc. ......... 11,643,500
--------------
TELECOMMUNICATION SYSTEMS AND
SPECIALTY EQUIPMENT -- 1.1%
79,000 Comsat Corporation, Series 1...... 1,530,625
181,000 Harris Corporation................ 10,430,125
--------------
11,960,750
--------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TELEPHONE -- BELL REGIONAL -- 1.9%
540,000 BellSouth Corporation............. $ 20,992,500
--------------
TELEPHONE -- CABLE AND
CELLULAR -- 1.0%
209,000 SBC Communications Inc. .......... 11,286,000
--------------
TRANSPORTATION -- AIRLINES -- 1.3%
184,000 Delta Air Lines Inc. ............. 14,283,000
--------------
TRANSPORTATION -- SURFACE -- 2.2%
194,000 Burlington Northern Inc. ......... 15,641,250
312,000 Dial Corporation.................. 8,424,000
--------------
24,065,250
--------------
TOTAL COMMON STOCKS
(Cost $847,370,835)............. 1,034,870,899
==============
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
- ----------
REPURCHASE AGREEMENT -- 5.0%
(Cost $55,124,000)
$55,124,000) Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased at
$55,132,927 on 12/01/95,
collateralized by: $56,502,224
U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15........................ 55,124,000
============
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $902,494,835*)................ 99.7% 1,089,994,899
OTHER ASSETS AND
LIABILITIES (NET)................... 0.3 2,998,647
----- --------------
NET ASSETS............................ 100.0% $1,092,993,546
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes is $902,571,720.
+ Non-income producing security.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
ADS American Depositary Share
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 132
NATIONS FUND TRUST
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- 95.5%
APPAREL -- 0.4%
210,700 Intimate Brands Inc. .............. $ 3,502,888
------------
BEVERAGES -- 3.3%
186,800 Coca-Cola Company.................. 14,150,100
300,000 PepsiCo Inc. ...................... 16,575,000
------------
30,725,100
------------
BUSINESS EQUIPMENT AND
PERIPHERALS -- 5.7%
333,300 Bay Networks, Inc.+................ 14,998,500
238,500 cisco Systems Inc.+................ 20,063,812
91,300 International Business Machines
Corporation...................... 8,821,862
65,100 Xerox Corporation.................. 8,926,838
------------
52,811,012
------------
COMPUTER MANUFACTURERS -- 4.7%
303,800 COMPAQ Computer Corporation+....... 15,038,100
110,000 Hewlett Packard Company............ 9,116,250
267,000 Silicon Graphics Inc.+............. 9,745,500
118,400 Sun Microsystems Inc.+............. 9,960,400
------------
43,860,250
------------
DIVERSIFIED HEALTH CARE -- 1.9%
252,500 Columbia/HCA Healthcare
Corporation...................... 13,035,312
154,900 HEALTHSOUTH Corporation+........... 4,685,725
------------
17,721,037
------------
DRUGS -- 5.3%
130,000 Bristol-Myers Squibb............... 10,432,500
140,000 Merck & Company Inc. .............. 8,662,500
228,400 Mylan Labs Inc. ................... 5,338,850
238,700 Pfizer Inc. ....................... 13,844,600
195,000 Schering-Plough Corporation........ 11,188,125
------------
49,466,575
------------
DRUGS -- MEDICAL SUPPLIES -- 5.8%
350,300 Abbott Laboratories................ 14,230,937
145,000 Becton, Dickinson & Company........ 10,113,750
193,700 Johnson & Johnson.................. 16,779,263
234,800 Medtronic Inc. .................... 12,884,650
------------
54,008,600
------------
ELECTRICAL EQUIPMENT -- 4.7%
245,000 Emerson Electric Company........... 19,110,000
359,000 General Electric Company........... 24,142,750
------------
43,252,750
------------
ELECTRONIC COMPONENTS -- 6.8%
320,800 Applied Materials Inc.+............ 15,598,900
67,100 AVX Corporation.................... 1,929,125
296,200 Intel Corporation.................. 18,031,175
106,000 LSI Logic Corporation+............. 4,438,750
217,000 Motorola, Inc. .................... 13,291,250
173,200 Texas Instruments Inc. ............ 10,023,950
------------
63,313,150
------------
ENGINEERING AND
CONSTRUCTION -- 1.1%
159,600 Fluor Corporation.................. 10,374,000
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
FINANCE -- SERVICES -- 2.4%
275,000 Dean Witter, Discover & Company.... $ 14,025,000
100,000 Morgan Stanley Group, Inc. ........ 8,625,000
------------
22,650,000
------------
HEALTH AND BEAUTY -- 0.7%
120,000 Gillette Company................... 6,225,000
------------
HOUSEHOLD PRODUCTS -- 2.2%
235,000 Procter & Gamble Company........... 20,298,125
------------
INDUSTRIAL CONGLOMERATES -- 2.0%
400,000 AlliedSignal Inc. ................. 18,900,000
------------
INSURANCE -- 1.2%
200,000 MGIC Investment Corporation........ 11,125,000
------------
LEISURE -- 2.1%
342,000 Circus Circus Enterprises Inc.+.... 9,490,500
246,000 Time Warner Inc. .................. 9,840,000
------------
19,330,500
------------
LIFE AND SPECIALTY
INSURANCE -- 4.3%
115,000 AFLAC, Inc. ....................... 4,686,250
168,000 American International Group,
Inc. ............................ 15,078,000
100,000 General Re Corporation............. 14,962,500
93,400 UNUM Corporation................... 5,055,275
------------
39,782,025
------------
LONG DISTANCE -- 1.0%
135,800 AT&T Corporation................... 8,962,800
------------
MEDIA -- 3.5%
119,400 Capital Cities/ABC Inc. ........... 14,760,825
57,000 Interpublic Group Companies
Inc. ............................ 2,187,375
442,000 K-III Communications Corporation... 5,193,500
82,900 Omnicom Group Inc. ................ 5,533,575
187,500 Tele-Communications Liberty Media,
Group A+......................... 5,250,000
------------
32,925,275
------------
METALS -- 1.3%
83,000 Crown Cork & Seal Inc.+............ 3,475,625
175,000 Nucor Corporation.................. 8,728,125
------------
12,203,750
------------
MONEY CENTER BANKS -- 0.8%
100,000 Citicorp........................... 7,075,000
------------
OIL SERVICES AND EQUIPMENT -- 2.6%
213,800 Schlumberger Ltd. ................. 13,576,300
217,100 Western Atlas Inc.+................ 10,393,663
------------
23,969,963
------------
PAPER AND FOREST PRODUCTS -- 1.0%
157,650 Mead Corporation................... 9,005,756
------------
PETROLEUM -- DOMESTIC -- 1.9%
410,000 Enron Corporation.................. 15,375,000
91,900 Union Pacific Resources Group
Inc. ............................ 2,136,675
------------
17,511,675
------------
PETROLEUM -- INTERNATIONAL -- 4.7%
145,000 Amoco Corporation.................. 9,823,750
200,000 Mobil Corporation.................. 20,875,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 133
NATIONS FUND TRUST
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
PETROLEUM -- INTERNATIONAL --
(CONTINUED)
100,000 Royal Dutch Petroleum Company, ADR.. $ 12,837,500
------------
43,536,250
------------
PRODUCER GOODS -- MACHINERY -- 0.8%
120,000 Caterpillar Inc. .................. 7,365,000
------------
REGIONAL BANKS AND THRIFTS -- 2.3%
230,000 Bank of New York Inc............... 10,838,750
317,000 Norwest Corporation................ 10,461,000
------------
21,299,750
------------
RETAIL -- SPECIALTY -- 4.1%
70,000 Home Depot Inc. ................... 3,106,250
411,900 Lowe's Companies Inc. ............. 12,974,850
432,000 Office Depot Inc.+................. 10,584,000
507,050 OfficeMax, Inc.+................... 11,535,388
------------
38,200,488
------------
SOFTWARE AND SERVICES -- 6.2%
127,700 Broderbund Software Corporation+... 8,268,575
258,700 Ceridian Corporation+.............. 10,865,400
195,300 First Data Corporation............. 13,866,300
104,300 Microsoft Corporation+............. 9,087,137
339,250 Oracle Systems Corporation+........ 15,393,469
------------
57,480,881
------------
TELECOMMUNICATION SYSTEMS AND
SPECIALTY EQUIPMENT -- 6.7%
318,600 DSC Communications Corporation+.... 12,624,525
445,000 Ericsson (L.M.) Telecommunications
Company, Class B, ADR............ 10,568,750
236,200 Glenayre Technologies Inc.+........ 13,522,450
243,400 Nokia Corporation, Class A, ADR.... 13,204,450
324,000 Paging Network Inc.+............... 7,209,000
115,000 QUALCOMM Inc.+..................... 4,758,125
------------
61,887,300
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TELEPHONE -- CABLE AND
CELLULAR -- 3.1%
321,400 AirTouch Communications+........... $ 9,360,775
507,200 Comcast Corporation, Class A....... 10,017,200
261,300 Vodafone Group, ADR................ 9,439,463
------------
28,817,438
------------
WASTE MANAGEMENT -- 0.9%
288,400 Browning-Ferris Industries Inc. ... 8,688,050
------------
TOTAL COMMON STOCKS
(Cost $699,705,058).............. 886,275,388
===========
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
- ---------
REPURCHASE AGREEMENT -- 3.2%
(Cost $30,129,000)
$30,129,000 Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased at
$30,133,879 on 12/01/95,
collateralized by: $30,882,293
U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15......................... 30,129,000
==========
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $729,834,058*).................. 98.7% 916,404,388
OTHER ASSETS AND
LIABILITIES (NET)..................... 1.3 11,916,632
----- ------------
NET ASSETS.............................. 100.0% $928,321,020
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
<TABLE>
<S> <C>
ADR American Depositary Receipt
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 134
NATIONS FUND TRUST
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENT NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 89.8%
APPAREL -- 2.3%
190,000 Lands End Inc.+.................... $ 2,802,500
13,500 Nautica Enterprises Inc.+.......... 479,250
87,000 Nine West Group Inc.+.............. 3,860,625
-----------
7,142,375
-----------
AUTOMOTIVE ACCESSORIES -- 1.2%
50,000 Discount Auto Parts Inc.+.......... 1,387,500
90,000 Superior Industries International
Inc. ............................ 2,463,750
-----------
3,851,250
-----------
BEVERAGES -- 0.2%
12,000 Boston Beer Company Inc. .......... 309,000
9,000 Pete's Brewing Company............. 220,500
-----------
529,500
-----------
BUSINESS EQUIPMENT AND
PERIPHERALS -- 1.1%
100,000 Danka Business Systems Plc, ADR.... 3,400,000
-----------
CHEMICALS -- SPECIALTY -- 1.2%
133,000 Airgas Inc.+....................... 3,724,000
-----------
COMPUTER MANUFACTURERS -- 1.6%
90,000 Converse Technology Inc. .......... 2,025,000
33,000 FileNet Corporation+............... 1,410,750
72,000 S3 Inc.+........................... 1,359,000
-----------
4,794,750
-----------
DIVERSIFIED HEALTH CARE -- 7.4%
45,000 Community Health Systems+.......... 1,541,250
75,800 HCIA Inc.+......................... 3,429,950
125,700 Health Management Association Inc.,
Class A+......................... 3,331,050
100,000 HealthCare COMPARE Corporation+.... 3,912,500
71,000 Manor Care Inc. ................... 2,316,375
5,700 National Surgery Centers Inc. ..... 121,125
30,800 Pediatrix Medical Group+........... 631,400
55,000 PhyCor Inc.+....................... 2,461,250
105,000 Sierra Health Services+............ 3,438,750
135,000 Sun Healthcare Group Inc.+......... 1,670,625
-----------
22,854,275
-----------
DRUGS -- 2.4%
180,000 Mylan Labs Inc..................... 4,207,500
68,000 Watson Pharmaceuticals Inc.+....... 3,204,500
-----------
7,412,000
-----------
DRUGS -- MEDICAL SUPPLIES -- 4.4%
51,000 AMSCO International, Inc.+......... 860,625
220,000 Biomet Inc.+....................... 4,070,000
38,000 Nellcor Inc.+...................... 2,185,000
90,000 Stryker Corporation................ 4,815,000
30,000 Sybron International
Corporation+..................... 1,447,500
-----------
13,378,125
-----------
ELECTRICAL EQUIPMENT -- 4.3%
80,000 Input/Output Inc.+................. 3,690,000
92,000 KLA Instruments Corporation+....... 3,174,000
43,000 StrataCom Inc.+.................... 3,225,000
22,700 Tegal Corporation.................. 238,350
110,000 Teradyne Inc.+..................... 2,873,750
-----------
13,201,100
-----------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRONIC COMPONENTS -- 7.4%
110,000 Allen Group Inc. .................. $ 2,901,250
35,000 Altera Corporation+................ 2,030,000
175,000 Amphenol Corporation, Class A+..... 3,937,500
67,000 Analog Devices Inc.+............... 2,479,000
90,000 Atmel Corporation.................. 2,700,000
154,000 Gentex Corporation+................ 3,349,500
110,000 Symbol Technologies Inc.+.......... 4,235,000
40,000 Xilinx Inc.+....................... 1,285,000
-----------
22,917,250
-----------
ENERGY EXPLORATION AND
PRODUCTION -- 0.9%
62,000 Pogo Producing Company............. 1,426,000
62,300 Union Texas Petroleum Holdings
Inc. ............................ 1,199,275
-----------
2,625,275
-----------
FINANCE -- SERVICES -- 0.9%
50,000 Franklin Resources Inc. ........... 2,643,750
-----------
INSURANCE -- 0.8%
63,500 American Re Corporation+........... 2,619,375
-----------
LEISURE -- 2.3%
235,000 Callaway Golf Company.............. 4,670,625
163,000 Station Casinos Inc.+.............. 2,445,000
-----------
7,115,625
-----------
MEDIA -- 2.3%
89,700 Belo (A.H.) Corporation,
Series A......................... 3,195,563
91,000 Infinity Broadcasting Corporation,
Class A+......................... 2,912,000
54,000 Katz Media Group Inc.+............. 891,000
-----------
6,998,563
-----------
OIL SERVICES AND EQUIPMENT -- 3.7%
172,000 BJ Services Inc.+.................. 4,235,500
56,800 Camco International Companies
Inc. ............................ 1,334,800
125,000 Parker & Parsley Petroleum
Company.......................... 2,343,750
205,000 Smith International Inc.+.......... 3,459,375
-----------
11,373,425
-----------
PETROLEUM -- DOMESTIC -- 1.2%
180,000 Enron Oil & Gas Company............ 3,780,000
-----------
PRODUCER GOODS -- MACHINERY -- 1.0%
36,000 AGCO Corporation................... 1,552,500
24,000 Cognex Corporation+................ 1,458,000
-----------
3,010,500
-----------
REGIONAL BANKS AND THRIFTS -- 2.6%
33,000 Bank of New York Inc. ............. 1,555,125
57,000 Boatmen's Bancshares Inc. ......... 2,208,750
130,000 Norwest Corporation................ 4,290,000
-----------
8,053,875
-----------
RESTAURANTS AND LODGING -- 8.7%
132,000 Boston Chicken Inc. ............... 4,570,500
240,000 Brinker International Inc.+........ 3,690,000
136,000 La Quinta Inns Inc. ............... 3,689,000
98,000 Lone Star Steakhouse/Saloon
Inc. ............................ 3,846,500
97,000 Outback Steakhouse Inc.+........... 3,540,500
90,000 Papa John's International Inc. .... 3,858,750
165,000 Promus Hotel Corporation+.......... 3,650,625
-----------
26,845,875
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 135
NATIONS FUND TRUST
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
RETAIL -- MAJOR -- 1.2%
142,000 Dollar General Corporation......... $ 3,851,750
-----------
RETAIL -- SPECIALTY -- 7.3%
105,400 Bed Bath & Beyond Inc.+............ 3,465,025
50,000 Ethan Allen Interiors Inc.+........ 1,100,000
130,000 General Nutrition Companies
Inc.+............................ 2,876,250
100,000 Gymboree Corporation+.............. 2,362,500
122,000 Just For Feet Inc. ................ 4,163,250
16,700 Oakley Inc.+....................... 534,400
145,900 Sports Authority Inc. ............. 3,082,138
55,000 Starbucks Corporation+............. 2,323,750
57,000 Viking Office Products Inc.+....... 2,622,000
-----------
22,529,313
-----------
SERVICES -- 1.3%
59,000 Catalina Marketing Corporation+.... 3,407,250
35,000 Franklin Quest Company+............ 660,625
-----------
4,067,875
-----------
SOFTWARE AND SERVICES -- 13.8%
6,000 Advent Software Inc. .............. 126,000
9,400 Arbor Software Corporation......... 404,200
35,000 Avid Technology, Inc.+............. 1,386,875
72,000 Bell & Howell Holdings Company+.... 1,863,000
44,000 Broderbund Software Corporation+... 2,849,000
83,100 Cadence Design Systems Inc.+....... 2,991,600
91,200 Davidson and Associates Inc.+...... 2,257,200
28,000 DST Systems Inc. .................. 808,500
80,000 Electronic Arts+................... 2,730,000
79,300 Harbinger Corporation+............. 1,992,412
65,000 HBO & Company...................... 4,858,750
127,000 Informix Corporation+.............. 3,516,312
20,000 Learning Company+.................. 1,215,000
54,000 Macromedia Inc. ................... 2,511,000
88,000 Millipore Corporation.............. 3,278,000
4,300 Objective Systems Intergrators
Inc. ............................ 81,700
26,000 Parametric Technology
Corporation+..................... 1,839,500
10,000 Project Software & Development
Inc. ............................ 327,500
6,900 Scopus Technology Inc. ............ 163,875
25,000 Shiva Corporation+................. 1,850,000
100,000 SunGard Data Systems Inc.+......... 2,875,000
1,500 Visio Corporation.................. 40,125
100,000 Wonderware Corporation+............ 2,675,000
-----------
42,640,549
-----------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TELECOMMUNICATION SYSTEMS AND
SPECIALTY EQUIPMENT -- 7.4%
80,000 ADC Telecommunications Inc.+....... $ 3,640,000
130,000 Aspect Telecommunications
Corporation+..................... 4,420,000
68,000 Glenayre Technologies Inc.+........ 3,893,000
83,000 Nextel Communications Inc., Class
A+............................... 1,276,125
132,000 Paging Network Inc.+............... 2,937,000
113,300 Palmer Wireless Inc., Class A+..... 2,407,625
67,000 QUALCOMM Inc.+..................... 2,772,125
61,700 Spectrian Corporation+............. 1,434,525
-----------
22,780,400
-----------
WASTE MANAGEMENT -- 0.9%
82,100 Sanifill Inc.+..................... 2,750,350
-----------
TOTAL COMMON STOCKS
(Cost $233,200,832).............. 276,891,125
===========
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
- ----------
REPURCHASE AGREEMENT -- 10.2%
(Cost $31,604,000)
$31,604,000 Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased at
$31,609,118 on 12/01/95,
collateralized by: $32,394,171
U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15......................... 31,604,000
===========
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $264,804,832*).................. 100.0% 308,495,125
OTHER ASSETS AND
LIABILITIES (NET)..................... (0.0) (92,529)
----- ------------
NET ASSETS.............................. 100.0% $308,402,596
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes is $265,527,669.
+ Non-income producing security.
ABBREVIATION:
<TABLE>
<S> <C>
ADR American Depositary Receipt
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 136
NATIONS FUND TRUST
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- 58.0%
AEROSPACE AND DEFENSE -- 1.8%
20,800 Lockheed Martin Corporation........ $ 1,526,200
31,400 Raytheon Company................... 1,397,300
28,600 Rockwell International
Corporation...................... 1,401,400
------------
4,324,900
------------
APPAREL AND TEXTILE -- 1.3%
67,100 Unifi Inc. ........................ 1,593,625
30,200 V.F. Corporation................... 1,570,400
------------
3,164,025
------------
AUTOMOTIVE ACCESSORIES -- 1.8%
37,700 Echlin Inc. ....................... 1,376,050
34,700 Genuine Parts Company.............. 1,401,013
36,100 Goodyear Tire & Rubber Company..... 1,529,737
------------
4,306,800
------------
BEVERAGES -- 1.6%
20,400 Anheuser-Busch Companies, Inc. .... 1,351,500
11,500 Coca-Cola Company.................. 871,125
28,700 PepsiCo Inc. ...................... 1,585,675
------------
3,808,300
------------
BUSINESS EQUIPMENT AND PERIPHERALS
-- 3.1%
45,300 AMP Inc. .......................... 1,817,662
21,600 Harris Corporation................. 1,244,700
15,200 International Business Machines
Corporation...................... 1,468,700
29,300 Pitney Bowes Inc. ................. 1,311,175
10,115 Xerox Corporation.................. 1,387,019
------------
7,229,256
------------
CHEMICALS -- BASIC -- 2.1%
11,900 Dow Chemical Company............... 843,412
27,100 du Pont (E.I.) deNemours &
Company.......................... 1,802,150
10,000 Eastman Chemical Company........... 656,250
35,700 PPG Industries, Inc. .............. 1,619,888
------------
4,921,700
------------
CHEMICALS -- SPECIALTY -- 0.8%
62,300 Lubrizol Corporation............... 1,783,337
------------
COMPUTER MANUFACTURERS -- 1.5%
26,400 COMPAQ Computer Corporation+....... 1,306,800
16,874 Hewlett Packard Company............ 1,398,433
24,200 Silicon Graphics Inc.+............. 883,300
------------
3,588,533
------------
DIVERSIFIED HEALTH CARE -- 1.1%
20,300 Columbia/HCA Healthcare
Corporation...................... 1,047,987
43,900 Mallinckrodt Group Inc. ........... 1,498,087
------------
2,546,074
------------
DRUGS -- 1.3%
20,100 Bristol-Myers Squibb............... 1,613,025
23,200 Schering-Plough Corporation........ 1,331,100
------------
2,944,125
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
DRUGS -- MEDICAL SUPPLIES -- 2.7%
47,152 Abbott Laboratories................ $ 1,915,550
43,300 Bausch & Lomb Inc. ................ 1,564,212
19,100 Becton, Dickinson & Company........ 1,332,225
32,000 Rhone-Poulenc Rorer................ 1,532,000
------------
6,343,987
------------
ELECTRIC UTILITIES -- NON-NUCLEAR
-- 1.7%
48,700 Baltimore Gas & Electric Company... 1,296,637
41,900 CINergy Corporation................ 1,236,050
46,000 PECO Energy Company................ 1,334,000
------------
3,866,687
------------
ELECTRICAL EQUIPMENT -- 2.7%
27,400 Eaton Corporation.................. 1,493,300
31,300 Emerson Electric Company........... 2,441,400
18,200 General Electric Company........... 1,223,950
36,500 General Signal Corporation......... 1,177,125
------------
6,335,775
------------
ELECTRONIC COMPONENTS -- 2.0%
33,200 Avnet, Inc. ....................... 1,560,400
20,700 Intel Corporation.................. 1,260,112
15,500 Motorola, Inc. .................... 949,375
16,200 Texas Instruments Inc. ............ 937,575
------------
4,707,462
------------
FOOD -- PACKAGED -- 1.2%
16,800 Hershey Foods Corporation.......... 1,037,400
12,800 Unilever N.V., ADR................. 1,700,800
------------
2,738,200
------------
HOUSEHOLD PRODUCTS -- 1.1%
19,800 Clorox Company..................... 1,499,850
13,500 Procter & Gamble Company........... 1,166,063
------------
2,665,913
------------
INDUSTRIAL CONGLOMERATES -- 2.6%
103,400 Hanson, Plc, ADR................... 1,576,850
11,300 ITT Corporation.................... 1,385,663
23,900 Minnesota Mining & Manufacturing
Company.......................... 1,565,450
20,800 TRW Inc. .......................... 1,557,400
------------
6,085,363
------------
INSURANCE -- 1.0%
13,800 Marsh & McLennan Companies Inc. ... 1,197,150
19,600 MGIC Investment Corporation........ 1,090,250
------------
2,287,400
------------
LEISURE -- 1.1%
36,700 Circus Circus Enterprises Inc. .... 1,018,425
36,554 Time Warner Inc. .................. 1,462,160
------------
2,480,585
------------
LIFE AND SPECIALTY
INSURANCE -- 1.9%
18,000 American International Group,
Inc. ............................ 1,615,500
9,800 General Re Corporation............. 1,466,325
30,500 Lincoln National Corporation....... 1,425,875
------------
4,507,700
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 137
NATIONS FUND TRUST
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
LONG DISTANCE -- 1.4%
24,100 AT&T Corporation................... $ 1,590,600
42,000 Sprint Corporation................. 1,680,000
------------
3,270,600
------------
MEDIA -- 1.0%
18,800 Capital Cities/ABC Inc. ........... 2,324,150
------------
METALS -- 0.6%
28,300 Nucor Corporation.................. 1,411,463
------------
MONEY CENTER BANKS -- 0.7%
22,100 First Chicago Corporation.......... 1,535,950
------------
OIL SERVICES AND EQUIPMENT -- 1.5%
88,800 Dresser Industries Inc. ........... 2,097,900
21,500 Schlumberger Ltd. ................. 1,365,250
------------
3,463,150
------------
PAPER AND FOREST PRODUCTS -- 0.4%
15,500 Mead Corporation................... 885,438
------------
PETROLEUM -- DOMESTIC -- 1.2%
33,100 Ashland Oil, Inc. ................. 1,154,362
49,100 Occidental Petroleum Corporation... 1,086,338
23,000 Sun Company, Inc. ................. 638,250
------------
2,878,950
------------
PETROLEUM -- INTERNATIONAL -- 4.3%
21,877 Amoco Corporation.................. 1,482,167
18,800 Chevron Corporation................ 928,250
18,000 Exxon Corporation.................. 1,392,750
12,200 Mobil Corporation.................. 1,273,375
37,500 Murphy Oil Corporation............. 1,476,563
15,100 Royal Dutch Petroleum Company,
ADR.............................. 1,938,463
21,400 Texaco Inc. ....................... 1,583,600
------------
10,075,168
------------
PRODUCER GOODS -- MACHINERY -- 0.6%
36,600 Briggs & Stratton Corporation...... 1,523,475
------------
REGIONAL BANKS AND THRIFTS -- 1.3%
39,300 Fleet Financial Group Inc. ........ 1,640,775
25,100 Mellon Bank Corporation............ 1,342,850
------------
2,983,625
------------
RESTAURANTS -- 0.5%
24,600 McDonald's Corporation............. 1,097,775
------------
RETAIL -- MAJOR -- 2.0%
43,200 Federated Department Stores
Inc.+............................ 1,258,200
35,600 May Department Stores Company...... 1,553,050
38,700 Penney (J.C.) Company Inc. ........ 1,814,063
------------
4,625,313
------------
RETAIL -- SPECIALTY -- 1.5%
27,700 Circuit City Stores Inc. .......... 803,300
30,181 Home Depot Inc. ................... 1,339,282
43,500 Lowe's Companies Inc. ............. 1,370,250
------------
3,512,832
------------
SOFTWARE AND SERVICES -- 0.4%
11,175 Microsoft Corporation+............. 973,622
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TELECOMMUNICATION SYSTEMS AND
SPECIALTY EQUIPMENT -- 1.6%
27,100 British Telecommunications, plc,
ADR.............................. $ 1,568,424
61,600 Communications Satellite
Corporation...................... 1,193,500
33,100 Telefonos de Mexico, Class L,
ADS.............................. 1,092,300
------------
3,854,224
------------
TELEPHONE -- BELL REGIONAL -- 0.6%
34,800 GTE Corporation.................... 1,483,350
------------
TELEPHONE -- CABLE AND CELLULAR
-- 0.9%
23,800 SBC Communications................. 1,285,200
49,800 Tele-Communications Inc., Class
A+............................... 921,300
------------
2,206,500
------------
TRANSPORTATION -- SURFACE -- 0.6%
16,400 CSX Corporation.................... 1,437,050
------------
UTILITIES -- NATURAL GAS -- 2.0%
58,700 Brooklyn Union Gas Company......... 1,658,275
48,700 Equitable Resources Inc. .......... 1,497,525
64,300 NICOR Inc. ........................ 1,631,612
------------
4,787,412
------------
WASTE MANAGEMENT -- 0.5%
40,300 Browning-Ferris Industries Inc. ... 1,214,038
------------
TOTAL COMMON STOCKS
(Cost $121,918,820).............. 136,180,207
===========
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
- ----------
ASSET-BACKED SECURITIES -- 3.0%
$ 1,900,000 AT&T Universal Card Master Trust,
5.950% 10/17/02.................. 1,903,562
2,000,000 Banc One Auto,
6.650% 05/15/97.................. 2,005,938
1,159,857 Daimler-Benz, Vehicle Trust 94,
Class A,
5.950% 12/15/00.................. 1,161,488
1,250,000 EQCC, Home Equity Loan,
Series 1995-4,
6.350% 10/15/09.................. 1,250,977
784,286 Green Tree Financial Corporation,
Class A, Variable Rate Note
6.550% 07/15/19.................. 787,963
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $7,084,776)................ 7,109,928
============
CORPORATE BONDS AND NOTES -- 5.6%
AUTOMOTIVE -- 1.4%
1,000,000 Ford Motor Credit Company, MTN,
7.450% 07/12/99.................. 1,047,039
1,000,000 Ford Motor Tranche, MTN,
5.750% 05/14/98.................. 998,279
1,250,000 General Motors Acceptance
Corporation, MTN,
6.250% 10/18/99.................. 1,260,024
------------
3,305,342
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 138
NATIONS FUND TRUST
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
CORPORATE BONDS AND NOTES -- (CONTINUED)
BANKING AND FINANCE -- 3.3%
$ 1,250,000 Ahmanson and Company, MTN,
6.530% 06/01/98.................. $ 1,260,561
1,000,000 BanPonce Finance Corporation, MTN,
7.650% 05/03/00.................. 1,047,599
1,000,000 Beneficial Corporation, MTN,
8.100% 11/23/98.................. 1,058,839
1,000,000 Capital One Bank, MTN,
6.660% due 08/17/98.............. 1,014,099
1,250,000 Chase Manhattan Corporation,
5.900% due 11/15/01.............. 1,251,172
1,000,000 International Lease Finance
Corporation,
6.270% 02/10/99.................. 1,005,329
1,000,000 U.S. West Capital Funding, MTN,
6.200% 11/30/99.................. 1,009,680
------------
7,647,279
------------
INDUSTRIAL -- 0.5%
1,000,000 TKR Cable 1, Inc., Debenture,
10.500% 10/30/07................. 1,171,900
------------
TRANSPORTATION -- AIRLINE -- 0.4%
1,000,000 Qantas Airways Ltd., Sr. Note,
6.625% 06/30/98++................ 1,009,938
------------
TOTAL CORPORATE
BONDS AND NOTES
(Cost $12,905,125)................. 13,134,459
===========
FOREIGN BOND -- 0.3%
(Cost $724,399)
750,000 Skandia Capital,
6.000% 11/02/98.................. 748,335
===========
MORTGAGE-BACKED SECURITIES -- 8.9%
FEDERAL HOME LOAN CORPORATION
(FHLMC) CERTIFICATES -- 0.5%
1,190,492 7.500% 04/01/07 (1 Pool)........... 1,219,412
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA)
CERTIFICATES -- 4.7%
5,998,589 7.000% 07/01/25 - 09/01/25
(3 Pools)........................ 5,995,779
1,771,290 7.500% 09/01/25 (1 Pool)........... 1,802,344
2,194,087 8.000% 09/15/25 (1 Pool)........... 2,259,230
780,554 8.500% 03/01/10 (1 Pool)........... 813,285
------------
10,870,638
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA)
CERTIFICATES -- 3.7%
489,127 7.000% 07/15/10 (1 Pool)........... 497,277
1,908,548 7.500% 12/15/23 - 03/15/24
(3 Pools)........................ 1,949,452
6,080,799 8.000% 06/15/22 - 07/15/25
(4 Pools)........................ 6,300,173
------------
8,746,902
------------
TOTAL MORTGAGE-
BACKED SECURITIES
(Cost $20,472,392)................. 20,836,952
===========
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
U.S. TREASURY SECURITIES -- 14.6%
U.S. TREASURY BONDS -- 10.0%
$ 895,000 10.750% 08/15/05................... $ 1,217,062
6,400,000 12.750% 11/15/10................... 9,654,054
4,000,000 12.500% 08/15/14................... 6,359,384
1,750,000 8.875% 08/15/17.................... 2,292,791
2,950,000 8.750% 08/15/20.................... 3,862,217
------------
23,385,508
------------
U.S. TREASURY NOTES -- 4.6%
1,000,000 6.125% 05/31/97.................... 1,010,006
4,724,000 5.125% 04/30/98.................... 4,694,503
4,130,000 8.250% 07/15/98.................... 4,412,021
575,000 6.500% 05/15/05.................... 604,921
------------
10,721,451
------------
TOTAL U.S. TREASURY SECURITIES
(Cost $31,552,812)............. 34,106,959
===========
TOTAL SECURITIES
(Cost $194,658,324)............ 212,116,840
===========
REPURCHASE AGREEMENT -- 8.9%
(Cost $20,995,000)
20,995,000 Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased at
$20,998,400 on 12/01/95,
collateralized by: $21,519,922
U.S. Treasury Bonds, 11.250% -
12.000% due 05/15/05 - 02/15/15.. 20,995,000
===========
TOTAL INVESTMENTS
(Cost $215,653,324*).................. 99.3% 233,111,840
OTHER ASSETS AND
LIABILITIES (NET)..................... 0.7 1,628,873
----- ------------
NET ASSETS.............................. 100.0% $234,740,713
----- ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes is $216,155,167.
+ Non-income producing security.
++ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
ADS American Depositary Share
MTN Medium Term Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 139
NATIONS FUND TRUST
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 92.3%
AEROSPACE AND DEFENSE -- 2.2%
10,100 Boeing Company..................... $ 736,037
1,800 General Dynamics Corporation....... 107,325
5,900 Lockheed Martin Corporation........ 432,913
4,800 Loral Corporation.................. 162,600
3,200 McDonnell Douglas Corporation...... 285,200
1,500 Northrop Grumman Corporation....... 92,250
1,400 Ogden Corporation.................. 29,750
7,600 Raytheon Company................... 338,200
6,600 Rockwell International
Corporation...................... 323,400
2,500 Rowan Companies Inc.+.............. 18,750
2,800 Textron Inc. ...................... 214,550
4,600 Unisys Corporation+................ 29,900
3,800 United Technologies Corporation.... 356,250
------------
3,127,125
------------
APPAREL AND TEXTILE -- 0.8%
900 Armstrong World Industries Inc. ... 53,887
300 Brown Group Inc. .................. 4,200
3,000 Charming Shoppes Inc. ............. 6,938
2,200 Fruit of the Loom Inc., Class A+... 42,625
4,600 Gap Inc. .......................... 208,150
11,000 Limited Inc. ...................... 196,625
2,600 Liz Claiborne Inc. ................ 76,375
1,900 National Services Industries
Inc. ............................ 61,750
4,400 Nike Inc., Class B................. 255,200
1,700 Reebok International, Ltd. ........ 44,200
1,050 Russell Corporation................ 27,956
400 Springs Industries Inc. ........... 16,800
1,500 Stride Rite Corporation............ 13,125
1,900 V. F. Corporation.................. 98,800
------------
1,106,631
------------
AUTOMOBILES -- 1.8%
11,450 Chrysler Corporation............... 593,968
31,700 Ford Motor Company................. 895,525
22,350 General Motors Corporation......... 1,083,975
1,120 Paccar, Inc. ...................... 49,000
------------
2,622,468
------------
AUTOMOTIVE ACCESSORIES -- 0.5%
2,700 Cooper Tire & Rubber Company....... 66,488
3,200 Dana Corporation................... 93,600
2,500 Eaton Corporation.................. 136,250
1,800 Echlin Inc. ....................... 65,700
3,625 Genuine Parts Company.............. 146,359
4,430 Goodyear Tire & Rubber Company..... 187,721
1,200 Snap On Tools Inc. ................ 53,100
------------
749,218
------------
BEVERAGES -- 3.6%
7,700 Anheuser-Busch Companies, Inc. .... 510,125
2,100 Brown-Forman Corporation,
Class B......................... 80,062
37,700 Coca-Cola Company.................. 2,855,775
1,200 Coors (Adolph) Company, Class B.... 24,300
23,600 PepsiCo Inc. ...................... 1,303,900
11,400 Seagram Company, Ltd. ............. 416,100
3,200 Whitman Corporation................ 70,400
------------
5,260,662
------------
BUILDING AND CONSTRUCTION -- 0.4%
2,900 Black & Decker Corporation......... 108,388
900 Centex Corporation................. 29,588
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
BUILDING AND CONSTRUCTION
-- (CONTINUED)
800 Foster Wheeler Corporation......... $ 31,600
800 Kaufman & Broad Home Corporation... 10,400
4,700 Masco Corporation.................. 138,650
600 Pulte Corporation.................. 18,450
2,900 Sherwin-Williams Company........... 114,913
1,400 Stanley Works...................... 70,875
------------
522,864
------------
BUSINESS EQUIPMENT AND PERIPHERALS
-- 2.2%
1,700 Avery Dennison Corporation......... 80,962
7,900 cisco Systems Inc.+................ 664,588
4,800 Donnelley (R.R.) & Sons Company.... 184,200
17,000 International Business Machines
Corporation...................... 1,642,625
4,800 Pitney Bowes Inc. ................. 214,800
3,100 Xerox Corporation.................. 425,087
------------
3,212,262
------------
CHEMICALS -- BASIC -- 1.9%
3,175 Coastal Corporation+............... 105,569
7,950 Dow Chemical Company............... 563,456
16,500 du Pont (E.I.) deNemours &
Company.......................... 1,097,250
2,587 Eastman Chemical Company........... 169,772
3,300 Hercules Inc. ..................... 181,087
1,300 Owens Corning Fiberglass
Corporation+..................... 57,687
1,500 Perkin Elmer Corporation........... 54,000
6,200 PPG Industries, Inc. .............. 281,325
2,100 Rohm & Haas Company................ 126,525
4,800 Union Carbide Corporation.......... 190,200
------------
2,826,871
------------
CHEMICALS -- SPECIALTY -- 1.0%
3,400 Air Products & Chemicals Inc. ..... 188,700
1,400 Bemis Inc. ........................ 36,575
3,287 Engelhard Corporation.............. 76,834
800 Goodrich (B.F.) Company............ 56,100
2,900 Grace (W.R.) & Company............. 176,175
1,600 Great Lakes Chemical Corporation... 113,800
3,500 Monsanto Company................... 400,750
4,400 Morton International Inc.,
Industries....................... 152,350
1,800 Nalco Chemical Company............. 55,125
3,900 Praxair Inc. ...................... 113,588
1,400 Sigma-Aldrich Corporation.......... 68,950
------------
1,438,947
------------
COMPUTER MANUFACTURERS -- 2.0%
3,500 Apple Computer Inc. ............... 133,438
2,100 Cabletron Systems Inc.+............ 174,300
8,000 COMPAQ Computer Corporation+....... 396,000
700 Data General Corporation+.......... 8,488
4,500 Digital Equipment Corporation+..... 264,938
15,100 Hewlett Packard Company............ 1,251,412
4,200 Honeywell Inc. .................... 200,025
2,450 Parker Hannifin Corporation........ 90,038
4,400 Silicon Graphics Inc.+............. 160,600
3,100 Sun Microsystems Inc.+............. 260,788
------------
2,940,027
------------
CONSUMER DURABLES -- 0.5%
10,050 Eastman Kodak Company.............. 683,400
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 140
NATIONS FUND TRUST
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
DIVERSIFIED HEALTH CARE -- 1.2%
2,600 Beverly Enterprises Inc.+.......... $ 30,225
13,166 Columbia/HCA Healthcare
Corporation...................... 679,695
2,400 Community Psychiatric Centers...... 26,700
1,795 Ecolab Inc. ....................... 51,606
2,500 Humana Inc. ....................... 70,000
2,400 Mallinckrodt Group Inc. ........... 81,900
2,000 Manor Care Inc. ................... 65,250
3,399 Pall Corporation................... 92,198
6,100 Tenet Healthcare Corporation....... 109,037
4,900 United Healthcare Corporation...... 308,088
4,900 U.S. Healthcare Inc. .............. 222,950
------------
1,737,649
------------
DRUGS -- 5.7%
2,000 ALZA Corporation+.................. 46,000
9,100 American Home Products
Corporation...................... 830,375
7,800 Amgen Inc.+........................ 387,075
15,140 Bristol-Myers Squibb............... 1,214,985
8,300 Lilly (Eli) & Company.............. 825,850
36,900 Merck & Company Inc. .............. 2,283,188
18,800 Pfizer Inc. ....................... 1,090,400
15,200 Pharmacia & Upjohn Inc. ........... 545,300
11,300 Schering-Plough Corporation........ 648,337
3,800 Warner Lambert Company............. 339,150
------------
8,210,660
------------
DRUGS -- MEDICAL SUPPLIES -- 2.8%
23,800 Abbott Laboratories................ 966,875
2,200 Allergan Inc. ..................... 68,200
1,600 Bard (C.R.) Inc. .................. 46,200
1,800 Bausch & Lomb Inc. ................ 65,025
8,400 Baxter International Inc. ......... 352,800
2,200 Becton, Dickinson & Company........ 153,450
2,900 Biomet Inc.+....................... 53,650
4,400 Boston Scientific Corporation+..... 178,200
19,400 Johnson & Johnson.................. 1,680,525
6,600 Medtronic Inc. .................... 362,175
2,100 St. Jude Medical Inc. ............. 82,950
1,800 United States Surgical
Corporation...................... 45,225
------------
4,055,275
------------
ELECTRIC UTILITIES -- NON-NUCLEAR
-- 3.8%
5,500 American Electric Power Inc. ...... 206,938
4,300 Baltimore Gas & Electric Company... 114,488
4,500 Carolina Power & Light Company..... 147,938
5,700 Central & South West Corporation... 153,187
3,643 CINergy Corporation................ 107,468
7,200 Consolidated Edison Company
New York Inc. ................... 207,900
4,700 Dominion Resources Inc............. 186,238
6,300 Duke Power Company................. 282,713
7,400 Entergy Corporation, New........... 206,275
5,200 FPL Group Inc. .................... 225,550
3,500 General Public Utilities
Corporation...................... 110,688
29,300 GTE Corporation.................... 1,248,913
4,800 Niagara Mohawk Power Corporation... 47,400
2,000 Northern States Power
Corporation...................... 94,000
4,700 Ohio Edison Company................ 106,925
13,300 Pacific Gas & Electric Company..... 365,750
8,300 PacifiCorp......................... 162,888
6,900 PECO Energy Company................ 200,100
5,000 PP&L Resources Inc. ............... 124,375
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRIC UTILITIES -- NON-NUCLEAR -- (CONTINUED)
13,500 SCEcorp............................ $ 210,938
19,700 Southern Company................... 450,638
6,600 Texas Utilities Company............ 254,100
6,600 Unicom Corporation................. 211,200
2,700 Union Electric Company............. 108,338
------------
5,534,948
------------
ELECTRIC
UTILITIES -- NUCLEAR -- 0.2%
4,700 Detroit Edison Company............. 153,338
3,700 Houston Industries Inc. ........... 169,275
------------
322,613
------------
ELECTRICAL EQUIPMENT -- 3.9%
3,000 Advanced Micro Devices Inc.+....... 61,500
3,300 Cooper Industries Inc. ............ 120,450
6,700 Emerson Electric Company........... 522,600
50,600 General Electric Company........... 3,402,850
1,300 General Signal Corporation......... 41,925
1,000 Johnson Controls Inc. ............. 69,250
6,200 Micron Technology, Inc. ........... 339,450
12,700 Minnesota Mining & Manufacturing
Company.......................... 831,850
1,800 Scientific Atlanta Inc. ........... 28,575
1,100 Tektronix Inc. .................... 59,262
1,400 Teledyne Inc. ..................... 33,950
9,200 Westinghouse Electric
Corporation...................... 155,250
------------
5,666,912
------------
ELECTRONIC COMPONENTS -- 2.6%
4,700 Amdahl Corporation................. 44,650
6,156 AMP Inc. .......................... 247,009
5,200 Applied Materials Inc.+ ........... 252,850
1,400 E.G. & G. Inc. .................... 26,950
1,400 Grainger (W.W.) Inc. .............. 93,625
24,600 Intel Corporation.................. 1,497,525
17,500 Motorola, Inc. .................... 1,071,875
4,500 National Semiconductor
Corporation+..................... 96,188
5,518 Texas Instruments Inc. ............ 319,354
400 Thomas & Betts Corporation......... 29,350
------------
3,679,376
------------
ENGINEERING AND
CONSTRUCTION -- 0.2%
2,700 Fluor Corporation.................. 175,500
3,200 Halliburton Company................ 138,800
------------
314,300
------------
FINANCE -- SERVICES -- 2.6%
14,800 American Express Company........... 629,000
1,700 Beneficial Corporation............. 86,275
4,968 Dean Witter, Discover & Company.... 253,368
3,100 Dow Jones & Company Inc. .......... 118,962
5,400 Federal Home Loan Mortgage
Corporation...................... 415,800
8,000 Federal National Mortgage
Association...................... 876,000
2,400 Household International Inc. ...... 150,000
6,600 KeyCorp (New)...................... 243,375
4,800 MBNA Corporation................... 193,800
5,200 Merrill Lynch & Company Inc. ...... 289,250
2,300 Morgan Stanley Group, Inc. ........ 198,375
9,900 Norwest Corporation................ 326,700
2,100 USF&G Corporation.................. 36,225
------------
3,817,130
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 141
NATIONS FUND TRUST
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
FOOD -- PACKAGED -- 3.1%
17,168 Archer-Daniels-Midland Company..... $ 296,148
7,000 Campbell Soup Company.............. 391,125
7,600 ConAgra Inc. ...................... 303,050
4,300 CPC International Inc. ............ 295,625
800 Fleming Companies Inc. ............ 18,500
4,800 General Mills Inc. ................ 264,600
11,250 Heinz (H.J.) Company............... 358,594
2,300 Hershey Foods Corporation.......... 142,025
6,600 Kellogg Company.................... 504,075
2,300 Pioneer Hi-Bred International...... 131,675
3,800 Quaker Oats Company................ 132,050
3,000 Ralston Purina Group............... 192,000
14,300 Sara Lee Corporation............... 461,175
5,700 Sysco Corporation.................. 174,563
4,700 Unilever N.V., ADR................. 624,512
3,500 Wrigley, (Wm) Jr. Company.......... 164,938
------------
4,454,655
------------
HEALTH AND BEAUTY -- 0.8%
700 Alberto-Culver Company, Class B.... 22,575
1,800 Avon Products Inc. ................ 130,725
13,200 Gillette Company................... 684,750
3,200 International Flavors & Fragrances
Inc. ............................ 163,600
4,200 Newell Company..................... 110,775
------------
1,112,425
------------
HOUSEHOLD PRODUCTS -- 1.9%
1,600 Clorox Company..................... 121,200
4,500 Colgate Palmolive Company.......... 329,625
6,300 Corning Inc. ...................... 189,788
3,200 Maytag Corporation................. 65,200
20,600 Procter & Gamble Company........... 1,779,325
4,900 Rubbermaid Inc. ................... 134,750
2,250 Whirlpool Corporation.............. 124,875
------------
2,744,763
------------
IMAGING -- 0.0%#
1,434 Polaroid Corporation............... 66,143
------------
INDUSTRIAL CONGLOMERATES -- 0.9%
3,000 Alco Standard Corporation.......... 130,500
8,600 AlliedSignal Inc. ................. 406,350
700 Ball Corporation................... 20,038
3,300 Illinois Tool Works Inc. .......... 209,137
3,300 ITT Corporation.................... 404,663
2,100 TRW Inc. .......................... 157,238
------------
1,327,926
------------
INSURANCE -- 1.4%
1,000 Alexander & Alexander Services
Inc. ............................ 21,875
2,800 Chubb Corporation.................. 272,300
2,100 CIGNA Corporation.................. 231,000
1,300 Jefferson-Pilot Corporation........ 92,462
1,800 Loews Corporation.................. 276,300
2,300 Marsh & McLennan Companies Inc. ... 199,525
3,000 Providian Corporation.............. 120,375
2,700 St. Paul Companies Inc. ........... 151,200
1,800 Torchmark Corporation.............. 76,500
46 Transport Holdings Inc., Class A... 1,805
9,399 Travelers Inc. (New)............... 559,240
------------
2,002,582
------------
JEWELRY -- 0.0%#
1,300 Jostens, Inc. ..................... 32,175
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
LEISURE -- 1.7%
1,100 Bally Entertainment Corporation+... $ 13,337
3,000 Brunswick Corporation.............. 64,125
15,800 Disney (Walt) Company.............. 949,975
1,300 Fleetwood Enterprises Inc. ........ 31,200
2,850 Harrah's Entertainment Inc. ....... 70,894
2,700 Hasbro Inc. ....................... 82,350
6,720 Mattel, Inc. ...................... 188,160
11,800 Time Warner Inc. .................. 472,000
10,731 Viacom Inc., Class B+.............. 517,771
200 Zurn Industries Inc. .............. 4,900
------------
2,394,712
------------
LIFE AND SPECIALTY
INSURANCE -- 2.2%
3,200 Aetna Life & Casualty Company...... 234,800
13,902 Allstate Corporation............... 569,982
6,200 American General Corporation....... 210,025
14,355 American International Group,
Inc. ............................ 1,288,361
2,400 General Re Corporation............. 359,100
2,900 Lincoln National Corporation....... 135,575
1,900 SAFECO Corporation................. 134,900
2,200 Transamerica Corporation........... 168,575
2,200 UNUM Corporation................... 119,075
1,050 USLIFE Corporation................. 30,318
------------
3,250,711
------------
LONG DISTANCE -- 2.4%
46,977 AT&T Corporation................... 3,100,482
10,100 Sprint Corporation................. 404,000
------------
3,504,482
------------
MEDIA -- 1.4%
4,600 Capital Cities/ABC Inc. ........... 568,675
4,780 Dun & Bradstreet Corporation....... 298,153
4,300 Gannett Inc. ...................... 262,300
900 Handleman Company.................. 5,625
2,200 Interpublic Group Companies
Inc. ............................ 84,425
1,150 King World Productions Inc.+....... 45,569
1,400 Knight-Ridder Inc. ................ 90,300
1,400 McGraw-Hill Inc. .................. 117,250
500 Meredith Corporation............... 19,688
2,800 New York Times Company, Class A.... 82,600
3,000 Times Mirror Company............... 97,500
1,900 Tribune Company.................... 122,550
14,000 U.S. West Media Inc. .............. 252,000
------------
2,046,635
------------
METALS -- 1.6%
7,450 Alcan Aluminum Ltd. ............... 246,781
4,800 Aluminum Company of America........ 280,800
2,300 Armco Inc.+........................ 13,225
1,200 ASARCO Inc. ....................... 42,450
10,000 Barrick Gold Corporation........... 263,750
3,100 Bethlehem Steel Corporation+....... 43,400
2,800 Crown Cork & Seal Inc.+............ 117,250
2,850 Cyprus Amax Minerals Company....... 78,375
3,000 Echo Bay Mines Ltd. ............... 31,125
6,200 Freeport McMoRan Copper and Gold,
Class B.......................... 168,175
3,100 Inco Ltd. ......................... 110,438
1,400 Inland Steel Industries Inc. ...... 36,575
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 142
NATIONS FUND TRUST
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
METALS -- (CONTINUED)
2,496 Newmont Mining Corporation......... $ 107,640
2,600 Nucor Corporation.................. 129,675
2,200 Phelps Dodge Corporation........... 149,325
7,300 Placer Dome Inc. .................. 180,675
1,900 Reynolds Metals Company............ 109,725
4,264 Santa Fe Pacific Gold
Corporation+..................... 51,168
800 Timken Company..................... 32,300
2,320 USX-U.S. Steel Group............... 75,690
2,325 Worthington Industries Inc. ....... 45,628
------------
2,314,170
------------
MONEY CENTER BANKS -- 1.5%
2,000 Bankers Trust N.Y. Corporation..... 129,750
5,500 Chase Manhattan Corporation........ 334,812
7,840 Chemical Banking Corporation....... 470,400
12,350 Citicorp........................... 873,763
3,200 First Chicago Corporation.......... 222,400
5,100 National City Corporation.......... 165,112
------------
2,196,237
------------
OIL SERVICES AND EQUIPMENT -- 0.5%
4,300 Baker Hughes Inc. ................. 87,612
4,700 Dresser Industries, Inc. .......... 111,038
7,200 Schlumberger Ltd. ................. 457,200
------------
655,850
------------
PAPER AND FOREST PRODUCTS -- 1.9%
2,200 American Greetings Corporation,
Class A.......................... 59,950
1,900 Boise Cascade Corporation.......... 70,775
4,100 Burlington Resources Inc. ......... 157,850
3,000 Champion International
Corporation...................... 141,375
2,400 Deluxe Corporation................. 66,300
1,200 Federal Paper Board Inc. .......... 62,400
2,800 Georgia-Pacific Corporation........ 217,700
1,000 Harland (John H.) Company.......... 20,625
800 Harnischfeger Industries Inc. ..... 27,100
7,800 International Paper Company........ 297,375
2,650 James River Corporation............ 83,475
4,800 Kimberly-Clark Corporation......... 369,000
3,400 Louisiana Pacific Corporation...... 91,800
1,600 Mead Corporation................... 91,400
2,700 Moore Corporation Ltd. ............ 48,262
800 Potlatch Corporation............... 32,300
4,500 Scott Paper Company................ 257,063
2,032 Stone Container Corporation........ 31,750
1,600 Temple-Inland Inc. ................ 72,600
2,250 Union Camp Corporation............. 110,531
3,412 Westvaco Corporation............... 93,403
6,150 Weyerhaeuser Company............... 278,288
1,600 Willamette Industries Inc. ........ 96,800
------------
2,778,122
------------
PETROLEUM -- DOMESTIC -- 2.5%
2,900 Amerada Hess Corporation........... 137,750
1,900 Ashland Oil, Inc. ................. 66,263
19,500 Chevron Corporation................ 962,812
1,400 Columbia Gas Systems Inc.+......... 60,550
2,700 Consolidated Natural Gas Company... 119,812
500 Eastern Enterprises................ 16,250
7,400 Enron Corporation.................. 277,500
2,400 ENSERCH Corporation................ 37,200
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PETROLEUM -- DOMESTIC -- (CONTINUED)
500 Helmerich & Payne Inc. ............ $ 13,625
4,200 Homestake Mining Company........... 69,300
1,600 Kerr McGee Corporation............. 92,600
900 Louisiana Land & Exploration
Company.......................... 35,100
1,500 McDermott International Inc. ...... 27,187
4,000 Noram Energy Corporation........... 31,500
9,700 Occidental Petroleum Corporation... 214,613
700 ONEOK Inc. ........................ 16,450
2,900 Oryx Energy Company................ 38,062
2,400 Pacific Enterprises................ 64,200
3,800 Panhandle Eastern Corporation...... 107,825
1,300 Pennzoil Company................... 51,512
900 Peoples Energy Corporation......... 27,450
8,100 Phillips Petroleum Company......... 269,325
7,500 Public Service Enterprise Group.... 222,188
2,500 Santa Fe Energy Resources.......... 23,125
2,800 Sonat Inc. ........................ 90,300
3,000 Sun Company, Inc. ................. 83,250
7,100 Unocal Corporation................. 190,812
8,600 USX-Marathon Group................. 158,025
1,600 Western Atlas Inc.+................ 76,600
2,700 Williams Companies Inc. ........... 113,400
------------
3,694,586
------------
PETROLEUM -- INTERNATIONAL -- 5.7%
14,700 Amoco Corporation.................. 995,925
4,800 Atlantic Richfield Company......... 520,200
36,950 Exxon Corporation.................. 2,859,006
11,900 Mobil Corporation.................. 1,242,062
15,900 Royal Dutch Petroleum Company,
ADR.............................. 2,041,163
7,600 Texaco Inc. ....................... 562,400
------------
8,220,756
------------
PLASTICS -- 0.1%
2,200 Premark International Inc. ........ 112,200
1,100 Raychem Corporation................ 57,200
------------
169,400
------------
PRODUCER GOODS -- MACHINERY -- 1.0%
900 Briggs & Stratton Corporation...... 37,463
5,900 Caterpillar Inc. .................. 362,112
700 Cincinnati Milacron Inc. .......... 18,287
800 Crane Company...................... 27,300
1,700 Cummins Engine Inc. ............... 66,725
8,100 Deere & Company.................... 266,287
3,600 Dover Corporation.................. 139,950
1,000 FMC Corporation, New+.............. 73,875
1,100 Giddings & Lewis Inc. ............. 17,325
3,100 Ingersoll Rand Company............. 118,962
700 Morrison Knudsen Corporation....... 4,200
200 Nacco Industries Inc., Class A..... 11,400
400 Outboard Marine Corporation........ 8,200
5,100 Tenneco Inc. ...................... 244,800
1,000 Trinova Corporation................ 30,750
1,300 Varity Corporation+................ 50,375
------------
1,478,011
------------
REGIONAL BANKS AND THRIFTS -- 4.4%
3,400 Ahmanson (H.F.) & Company.......... 90,950
11,466 Banc One Corporation............... 437,141
3,950 Bank of Boston Corporation......... 183,181
6,550 Bank of New York Inc. ............. 308,669
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 143
NATIONS FUND TRUST
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
REGIONAL BANKS AND THRIFTS -- (CONTINUED)
11,842 BankAmerica Corporation............ $ 753,447
3,050 Barnett Banks Inc. ................ 183,381
4,000 Boatmen's Bancshares Inc. ......... 155,000
3,400 Comerica Inc. ..................... 127,075
4,000 CoreStates Financial Corporation... 155,000
4,100 First Bank System, Inc. ........... 211,662
2,500 First Fidelity Bancorporation...... 183,437
2,750 First Interstate Bancorp........... 368,500
5,700 First Union Corporation............ 311,362
5,000 Fleet Financial Group Inc. ........ 208,750
1,800 Golden West Financial
Corporation...................... 92,025
3,950 Great Western Financial
Corporation...................... 100,725
4,800 Mellon Bank Corporation............ 256,800
5,200 Morgan (J.P.) & Company Inc. ...... 408,200
5,550 NBD Bancorp Inc. .................. 212,981
6,900 PNC Bank Corporation............... 201,825
1,500 Republic New York Corporation...... 94,500
2,900 Salomon Inc. ...................... 105,488
5,000 Shawmut National Corporation....... 187,500
3,900 SunTrust Banks Inc. ............... 266,175
3,050 U.S. Bancorp....................... 103,318
6,000 Wachovia Corporation............... 270,000
1,700 Wells Fargo & Company.............. 357,425
------------
6,334,517
------------
RESTAURANTS AND LODGINGS -- 0.9%
4,800 Darden Restaurants Inc. ........... 55,800
1,400 Hilton Hotels Corporation.......... 90,475
550 Luby's Cafeterias Inc. ............ 12,100
3,400 Marriott International Inc. ....... 126,650
20,800 McDonald's Corporation............. 928,200
1,400 Ryans Family Steak Houses Inc.+.... 10,325
1,300 Shoneys Inc.+...................... 13,975
3,300 Wendy's International Inc. ........ 68,062
------------
1,305,587
------------
RETAIL -- FOOD AND DRUG -- 0.6%
7,900 Albertsons Inc. ................... 242,925
4,200 American Stores Company............ 110,250
1,900 Giant Food Inc., Class A........... 61,275
1,000 Great Atlantic & Pacific Tea
Inc. ............................ 21,875
3,200 Kroger Company+.................... 107,200
400 Longs Drug Stores Corporation...... 15,900
2,700 Rite Aid Corporation............... 84,375
2,200 Supervalu Inc. .................... 70,950
2,200 Winn-Dixie Stores Inc. ............ 141,075
------------
855,825
------------
RETAIL -- MAJOR -- 2.4%
5,200 Federated Department Stores
Inc.+............................ 151,450
2,600 Harcourt General Inc. ............. 104,650
12,300 Kmart Corporation.................. 95,325
7,600 May Department Stores Company...... 331,550
900 Mercantile Stores Inc. ............ 41,850
7,000 Penney (J.C.) Company Inc. ........ 328,125
11,500 Sears, Roebuck & Company........... 452,813
68,500 Wal-Mart Stores Inc. .............. 1,644,000
8,000 Walgreen Company................... 233,000
4,000 Woolworth Corporation.............. 60,000
------------
3,442,763
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- SPECIALTY -- 1.2%
3,100 Circuit City Stores Inc. .......... $ 89,900
2,100 Dayton Hudson Corporation.......... 152,512
3,300 Dillard Department Stores Inc.,
Class A.......................... 95,287
13,372 Home Depot Inc. ................... 593,382
4,800 Lowe's Companies Inc. ............. 151,200
3,000 Melville Corporation............... 93,375
2,300 Nordstrom Inc. .................... 90,275
1,800 Pep Boys - Manny, Moe & Jack....... 47,700
6,204 Price/Costco Inc.+................. 103,141
2,000 Tandy Corporation.................. 95,250
2,200 TJX Companies Inc. ................ 36,575
8,787 Toys R Us Inc.+.................... 204,298
------------
1,752,895
------------
SERVICES -- 0.2%
4,350 CUC International Inc.+............ 165,300
2,350 Service Corporation
International.................... 95,469
------------
260,769
------------
SOFTWARE AND SERVICES -- 2.8%
1,800 Autodesk Inc. ..................... 63,450
4,400 Automatic Data Processing Inc. .... 350,350
2,600 Block (H & R) Inc. ................ 115,700
1,400 Ceridian Corporation+.............. 58,800
7,350 Computer Associates International
Inc. ............................ 481,425
1,800 Computer Sciences Corporation+..... 130,950
600 Cray Research Inc.+................ 14,400
6,500 First Data Corporation............. 461,500
1,100 Intergraph Corporation+............ 18,906
17,400 Microsoft Corporation+............. 1,515,975
1,700 Millipore Corporation.............. 63,325
10,900 Novell Inc.+....................... 183,938
13,050 Oracle Systems Corporation+........ 592,144
600 Shared Medical Systems
Corporation...................... 26,025
3,100 Tandem Computers Inc.+............. 38,750
------------
4,115,638
------------
TELECOMMUNICATION SYSTEMS AND
SPECIALTY EQUIPMENT -- 0.9%
5,600 ALLTEL Corporation................. 165,200
1,175 Andrew Corporation+................ 50,819
3,000 DSC Communications Corporation+.... 118,875
1,200 Harris Corporation................. 69,150
20,500 MCI Communications Corporation..... 548,375
7,600 Northern Telecommunications,
Ltd. ............................ 306,850
2,900 Tellabs Inc. ...................... 113,825
------------
1,373,094
------------
TELEPHONE -- BELL REGIONAL -- 2.3%
12,900 Bell Atlantic Corporation.......... 812,700
29,700 BellSouth Corporation.............. 1,154,588
12,600 NYNEX Corporation.................. 625,275
12,500 Pacific Telesis Group.............. 375,000
14,100 U S West Inc. ..................... 440,625
------------
3,408,188
------------
TELEPHONE -- CABLE AND CELLULAR -- 2.1%
14,400 AirTouch Communications+........... 419,400
17,100 Ameritech Corporation.............. 940,500
6,650 Comcast Corporation, Class A....... 131,338
18,000 SBC Communications Inc. ........... 972,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 144
NATIONS FUND TRUST
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
TELEPHONE -- CABLE AND CELLULAR -- (CONTINUED)
19,600 Tele-Communications Inc., Class
A+............................... $ 362,600
5,000 Tyco International Ltd. ........... 156,875
------------
2,982,713
------------
TOBACCO -- 1.8%
5,700 American Brands Inc. .............. 237,975
25,200 Philip Morris Companies Inc. ...... 2,211,300
5,000 UST Inc. .......................... 163,125
------------
2,612,400
------------
TRANSPORTATION -- AIRLINES -- 0.3%
2,300 AMR Corporation+................... 176,238
1,500 Delta Air Lines Inc. .............. 116,438
3,900 Southwest Airlines Company......... 97,500
1,600 USAir Group Inc. .................. 21,400
------------
411,576
------------
TRANSPORTATION -- SURFACE -- 1.4%
4,513 Burlington Northern Inc. .......... 363,861
2,300 Conrail Inc. ...................... 160,713
1,500 Consolidated Freightways Inc.+..... 39,375
3,000 CSX Corporation.................... 262,875
2,600 Dial Corporation................... 70,200
1,600 Federal Express Corporation+....... 119,600
1,990 Navistar International
Corporation+..................... 21,641
4,300 Norfolk Southern Corporation....... 338,625
2,200 Pittston Services Group............ 67,100
1,000 Roadway Services Inc. ............. 50,250
3,300 Ryder Systems Inc. ................ 78,787
6,000 Union Pacific Corporation.......... 406,500
700 Yellow Corporation................. 8,400
------------
1,987,927
------------
UTILITIES -- NATURAL GAS -- 0.0%#
1,700 NICOR Inc. ........................ 43,137
------------
WASTE MANAGEMENT -- 0.5%
6,400 Browning-Ferris Industries Inc. ... 192,800
7,700 Laidlaw Inc., Class B.............. 71,225
1,650 Safety-Kleen Corporation........... 23,513
15,000 WMX Technologies Inc. ............. 442,500
------------
730,038
------------
TOTAL COMMON STOCKS
(Cost $102,506,913).............. 133,890,746
============
PREFERRED STOCK -- 0.0%# (Cost $376)
29 Teledyne Inc., Series E............ 384
============
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY BILLS -- 0.6%
$ 100,000 5.390% 12/21/95++.................. $ 99,700
500,000 5.368% 01/25/96++.................. 496,020
200,000 5.285% 02/01/96++.................. 198,180
------------
TOTAL U.S. TREASURY BILLS
(Cost $793,900).................. 793,900
============
TOTAL SECURITIES
(Cost $103,301,189).............. 134,685,030
============
REPURCHASE AGREEMENT -- 7.0%
(Cost $10,192,000)
10,192,000 Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased at
$10,193,651 on 12/01/95,
collateralized by: $10,446,823
U.S. Treasury Bonds, 11.250% -
12.000% due 05/15/05 -
02/15/15......................... 10,192,000
===========
TOTAL INVESTMENTS
(Cost $113,493,189*).................. 99.9% 144,877,030
OTHER ASSETS AND
LIABILITIES (NET)..................... 0.1 155,429
----- ------------
NET ASSETS.............................. 100.0% $145,032,459
===== ============
</TABLE>
<TABLE>
<CAPTION>
NET
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
- ------------------------------------------------------------
<S> <C> <C>
FUTURES CONTRACTS -- LONG POSITION
34 S&P 500 Index Futures, December
1995............................. $ 334,550
============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes is $113,700,972.
+ Non-income producing security.
++ Security segregated as collateral for Futures Contracts.
# Amount represents less than 0.1% of net assets.
ABBREVIATION:
<TABLE>
<S> <C>
ADR American Depositary Receipt
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 145
NATIONS FUND TRUST
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 95.7%
AEROSPACE AND DEFENSE -- 2.5%
36,500 McDonnell Douglas Corporation....... $ 3,253,063
------------
APPAREL -- 2.2%
50,600 Nike Inc., Class B.................. 2,934,800
------------
BUSINESS EQUIPMENT AND PERIPHERALS -- 2.2%
61,500 3Com Corporation+................... 2,813,625
------------
CHEMICALS -- BASIC -- 2.5%
50,200 Eastman Chemical Company............ 3,294,375
------------
CHEMICALS -- SPECIALTY -- 2.4%
44,000 Goodrich (B.F.) Company............. 3,085,500
------------
COMPUTER MANUFACTURERS -- 5.1%
68,400 Dell Computer Corporation........... 3,026,700
43,500 Sun Microsystems Inc.+.............. 3,659,438
------------
6,686,138
------------
CONSUMER DURABLES -- 2.5%
47,700 Eastman Kodak Company............... 3,243,600
------------
DIVERSIFIED HEALTH CARE -- 4.8%
68,900 Foundation Health Corporation+...... 3,152,175
116,100 Lincare Holdings Inc.+.............. 3,105,675
------------
6,257,850
------------
DRUGS -- 4.9%
39,100 Bristol-Myers Squibb................ 3,137,775
55,700 Schering-Plough Corporation......... 3,195,788
------------
6,333,563
------------
DRUGS -- MEDICAL SUPPLIES -- 2.5%
37,000 Johnson & Johnson................... 3,205,125
------------
ELECTRIC UTILITIES -- NON-NUCLEAR -- 2.2%
90,300 Unicom Corporation.................. 2,889,600
------------
ELECTRICAL EQUIPMENT -- 1.9%
44,300 Micron Technology, Inc. ............ 2,425,425
------------
ELECTRONIC COMPONENTS -- 4.1%
64,800 LSI Logic Corporation+.............. 2,713,500
45,400 Texas Instruments Inc. ............. 2,627,525
------------
5,341,025
------------
ENGINEERING AND CONSTRUCTION -- 2.4%
72,200 Halliburton Company................. 3,131,675
------------
FOOD -- PACKAGED -- 2.1%
44,400 IBP Inc. ........................... 2,775,000
------------
INDUSTRIAL CONGLOMERATES -- 2.5%
51,900 Illinois Tool Works Inc. ........... 3,289,163
------------
INSURANCE -- 6.7%
29,000 CIGNA Corporation................... 3,190,000
25,200 CNA Financial Corporation+.......... 2,926,350
17,300 Loews Corporation................... 2,655,550
------------
8,771,900
------------
MEDIA -- 2.4%
47,600 Tribune Company..................... 3,070,200
------------
METALS -- 5.0%
58,300 Aluminum Company of America......... 3,410,550
46,600 Phelps Dodge Corporation............ 3,162,975
------------
6,573,525
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PAPER AND FOREST PRODUCTS -- 4.4%
67,900 Bowater, Inc., ADR.................. $ 2,699,025
90,200 Harnischfeger Industries Inc. ...... 3,055,525
------------
5,754,550
------------
PETROLEUM -- DOMESTIC -- 4.8%
141,000 Occidental Petroleum Corporation.... 3,119,625
76,300 Williams Companies Inc. ............ 3,204,600
------------
6,324,225
------------
PETROLEUM -- INTERNATIONAL -- 6.6%
28,200 Atlantic Richfield Company.......... 3,056,175
33,900 British Petroleum, ADS.............. 3,241,686
29,900 Exxon Corporation................... 2,313,512
------------
8,611,373
------------
PRODUCER GOODS -- MACHINERY -- 4.7%
77,700 Dover Corporation................... 3,020,588
86,150 Parker-Hannifin..................... 3,166,012
------------
6,186,600
------------
REGIONAL BANKS AND THRIFTS -- 4.8%
68,800 Bank of New York Inc. .............. 3,242,200
14,100 Wells Fargo & Company............... 2,964,525
------------
6,206,725
------------
RETAIL -- FOOD AND DRUGS -- 2.3%
64,100 Safeway Inc.+....................... 2,980,650
------------
TELEPHONE -- BELL REGIONAL -- 2.4%
103,100 Cincinnati Bell Inc. ............... 3,080,112
------------
TELEPHONE -- CABLE AND CELLULAR -- 2.3%
55,496 Ameritech Corporation............... 3,052,280
------------
TRANSPORTATION -- AIRLINES -- 2.5%
15,300 UAL Corporation..................... 3,201,525
------------
TOTAL COMMON STOCKS
(Cost $111,038,475)............... 124,773,192
===========
REPURCHASE AGREEMENT -- 3.8%
(Cost $4,981,000)
$4,981,000 Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased
at $4,981,807 on 12/01/95,
collateralized by:
$5,105,536 U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15.......................... 4,981,000
===========
TOTAL INVESTMENTS
(Cost $116,019,475*).................. 99.5% 129,754,192
OTHER ASSETS AND
LIABILITIES (NET)..................... 0.5 614,151
----- ------------
NET ASSETS.............................. 100.0% $130,368,343
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
ADS American Depositary Share
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 146
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS
NATIONS CAPITAL EMERGING BALANCED EQUITY DISCIPLINED
VALUE GROWTH GROWTH ASSETS INDEX EQUITY
FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
See accompanying schedules:
Securities................................ $1,034,870,899 $886,275,388 $276,891,125 $212,116,840 $134,685,030 $124,773,192
Repurchase agreements..................... 55,124,000 30,129,000 31,604,000 20,995,000 10,192,000 4,981,000
------------- ------------ ------------ ------------ ------------ ------------
Total investments....................... 1,089,994,899 916,404,388 308,495,125 233,111,840 144,877,030 129,754,192
Cash........................................ 273 135 660 860 780 348
Dividends receivable........................ 2,793,247 1,076,758 62,814 427,294 352,699 243,027
Interest receivable......................... 8,927 4,879 5,118 866,011 1,651 807
Receivable for Fund shares sold............. 1,708,114 2,173,949 322,848 557,356 135,330 741,613
Receivable for investment securities sold... 6,793,693 23,944,743 2,493,559 2,596,552 110,278 --
Unamortized organization costs (Note 6)..... -- 7,398 9,118 7,393 4,500 --
------------- ------------ ------------ ------------ ------------ ------------
Total Assets............................ 1,101,299,153 943,612,250 311,389,242 237,567,306 145,482,268 130,739,987
------------- ------------ ------------ ------------ ------------ ------------
LIABILITIES:
Variation margin/due to broker (Note 1)..... -- -- -- -- 13,600 --
Payable for Fund shares redeemed............ 1,796,544 1,061,744 88,312 720,126 10,463 197,741
Payable for investment securities
purchased................................. 5,471,950 13,304,415 2,557,782 1,852,025 352,141 --
Investment advisory fee payable (Note 2).... 663,497 565,214 185,918 140,050 10,477 77,626
Administration fee payable (Note 2)......... 88,466 75,362 24,789 18,867 11,641 10,350
Transfer agent fee payable (Note 2)......... 99,418 112,578 28,035 21,538 13,685 11,844
Custodian fees payable (Note 2)............. 12,762 13,995 5,234 4,201 2,168 2,901
Shareholder servicing and distribution fees
payable (Note 3).......................... 63,139 38,959 27,568 41,397 -- 13,046
Accrued Trustees' fees and expenses (Note
2)........................................ 7,805 6,729 2,178 1,659 993 835
Accrued expenses and other payables......... 102,026 112,234 66,830 26,730 34,641 57,301
------------- ------------ ------------ ------------ ------------ ------------
Total Liabilities....................... 8,305,607 15,291,230 2,986,646 2,826,593 449,809 371,644
------------- ------------ ------------ ------------ ------------ ------------
NET ASSETS.................................. $1,092,993,546 $928,321,020 $308,402,596 $234,740,713 $145,032,459 $130,368,343
============== ============ ============ ============ ============ ============
Investments, at cost (Note 1)............... $ 902,494,835 $729,834,058 $264,804,832 $215,653,324 $113,493,189 $116,019,475
============== ============ ============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 147
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS
NATIONS CAPITAL EMERGING BALANCED EQUITY DISCIPLINED
VALUE GROWTH GROWTH ASSETS INDEX EQUITY
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 3,324,753 $ 623,439 $ -- $ 1,336,901 $ 559,764 $ 85,147
Accumulated net realized gain on
securities and futures contracts..... 41,732,488 92,215,242 31,860,654 25,411,186 696,610 1,744,763
Net unrealized appreciation on
securities and futures contracts..... 187,500,064 186,570,330 43,690,293 17,458,516 31,718,391 13,734,717
Paid-in capital........................ 860,436,241 648,912,009 232,851,649 190,534,110 112,057,694 114,803,716
-------------- ------------ ------------ ------------ ------------ ------------
$1,092,993,546 $928,321,020 $308,402,596 $234,740,713 $145,032,459 $130,368,343
============== ============ ============ ============ ============ ============
NET ASSETS:
Trust A Shares......................... $ 956,669,182 $867,360,821 $269,483,523 $163,197,605 $145,021,288 $109,939,222
============== ============ ============ ============ ============ ============
Investor A Shares...................... $ 48,439,821 $ 16,770,234 $ 5,764,621 $ 5,275,870 $ 11,171 $ 3,233,587
============== ============ ============ ============ ============ ============
Investor C Shares...................... $ 4,185,214 $ 3,321,765 $ 805,429 $ 992,336 $ -- $ 322,026
============== ============ ============ ============ ============ ============
Investor N Shares...................... $ 83,699,329 $ 40,868,200 $ 32,349,023 $ 65,274,902 $ -- $ 16,873,508
============== ============ ============ ============ ============ ============
SHARES OUTSTANDING:
Trust A Shares......................... 59,020,680 60,888,814 18,875,334 12,872,511 11,228,909 6,442,973
============== ============ ============ ============ ============ ============
Investor A Shares...................... 2,988,985 1,179,335 406,767 416,830 865 189,820
============== ============ ============ ============ ============ ============
Investor C Shares...................... 260,051 235,740 58,074 78,725 -- 18,981
============== ============ ============ ============ ============ ============
Investor N Shares...................... 5,183,739 2,888,488 2,323,030 5,168,502 -- 999,013
============== ============ ============ ============ ============ ============
TRUST A SHARES:
Net asset value, offering price and
redemption price per share........... $16.21 $14.24 $14.28 $12.68 $12.91 $17.06
====== ====== ====== ====== ====== ======
INVESTOR A SHARES:
Net asset value and redemption price
per share............................ $16.21 $14.22 $14.17 $12.66 $12.91 $17.04
====== ====== ====== ====== ====== ======
Maximum sales charge................... 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
Maximum offering price per share....... $17.20 $15.09 $15.03 $13.43 $13.70 $18.08
====== ====== ====== ====== ====== ======
INVESTOR C SHARES:
Net asset value and offering price per
share*............................... $16.09 $14.09 $13.87 $12.61 N/A $16.97
====== ====== ====== ====== ======
INVESTOR N SHARES:
Net asset value and offering price per
share*............................... $16.15 $14.15 $13.93 $12.63 N/A $16.89
====== ====== ====== ====== ======
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 148
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS
NATIONS CAPITAL EMERGING BALANCED EQUITY DISCIPLINED
VALUE GROWTH GROWTH ASSETS INDEX EQUITY
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes
of $65,881, $64,639, $6,063, $0, $12,646
and $0, respectively)..................... $ 23,902,102 $ 10,687,590 $ 689,573 $ 2,125,312 $ 3,122,291 $ 952,390
Interest.................................... 3,502,806 3,409,117 1,917,863 7,059,582 510,754 194,530
------------ ------------ ----------- ----------- ----------- -----------
Total investment income................. 27,404,908 14,096,707 2,607,436 9,184,894 3,633,045 1,146,920
------------ ------------ ----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fee (Note 2)............ 7,231,379 6,269,137 1,858,780 1,624,854 645,286 371,379
Sub-investment advisory fee (Note 2)........ -- -- -- -- -- 28,306
Administration fee (Note 2)................. 951,938 825,136 244,941 213,630 127,288 53,136
Registration and filing fees................ 33,077 65,351 43,442 14,414 54,058 136,400
Transfer agent fees (Note 2)................ 570,862 548,431 145,195 143,437 55,077 33,228
Custodian fees (Note 2)..................... 138,251 112,654 52,940 47,192 59,352 31,585
Legal and audit fees........................ 122,700 219,725 52,099 46,964 36,322 26,184
Trustees' fees and expenses (Note 2)........ 19,211 16,720 5,260 7,891 2,546 1,408
Amortization of organization costs (Note
6)........................................ -- 4,036 4,559 4,032 1,500 --
Interest expense (Note 7)................... -- -- -- -- 7,567 193
Other....................................... 41,073 92,009 16,194 33,235 22,759 13,010
------------ ------------ ----------- ----------- ----------- -----------
Subtotal................................ 9,108,491 8,153,199 2,423,410 2,135,649 1,011,755 694,829
Shareholder servicing and distribution fee
(Note 3):
Investor A Shares......................... 100,864 33,996 10,934 12,281 3 926
Investor C Shares......................... 35,944 29,156 6,801 8,359 -- 1,185
Investor N Shares......................... 449,537 314,386 232,800 421,921 -- 39,592
Fees waived by investment adviser (Note
2)........................................ (25,350) -- (3,328) -- (523,117) (610)
------------ ------------ ----------- ----------- ----------- -----------
Total expenses.......................... 9,669,486 8,530,737 2,670,617 2,578,210 488,641 735,922
------------ ------------ ----------- ----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS)................ 17,735,422 5,565,970 (63,181) 6,606,684 3,144,404 410,998
------------ ------------ ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS (NOTES 1 AND 4):
Net realized gain/(loss) from:
Security transactions..................... 43,961,096 92,498,431 32,794,949 26,614,217 (560,273) 2,168,165
Futures contracts......................... -- -- -- -- 1,697,064 --
------------ ------------ ----------- ----------- ----------- -----------
Net realized gain on investments during the
year...................................... 43,961,096 92,498,431 32,794,949 26,614,217 1,136,791 2,168,165
------------ ------------ ----------- ----------- ----------- -----------
Change in unrealized
appreciation/(depreciation) of:
Securities................................ 220,609,103 128,143,733 33,098,767 16,197,493 34,556,576 13,293,665
Futures contracts......................... -- -- -- -- 510,225 --
------------ ------------ ----------- ----------- ----------- -----------
Net unrealized appreciation of investments
during the year........................... 220,609,103 128,143,733 33,098,767 16,197,493 35,066,801 13,293,665
------------ ------------ ----------- ----------- ----------- -----------
Net realized and unrealized gain on
investments............................... 264,570,199 220,642,164 65,893,716 42,811,710 36,203,592 15,461,830
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS................. $282,305,621 $226,208,134 $65,830,535 $49,418,394 $39,347,996 $15,872,828
============ ============ =========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 149
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS
NATIONS CAPITAL EMERGING BALANCED EQUITY DISCIPLINED
VALUE GROWTH GROWTH ASSETS INDEX EQUITY
FUND FUND FUND FUND FUND FUND
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss)...... $ 17,735,422 $ 5,565,970 $ (63,181) $ 6,606,684 $ 3,144,404 $ 410,998
Net realized gain on
investments..................... 43,961,096 92,498,431 32,794,949 26,614,217 1,136,791 2,168,165
Change in unrealized appreciation
of investments.................. 220,609,103 128,143,733 33,098,767 16,197,493 35,066,801 13,293,665
------------- ------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations....... 282,305,621 226,208,134 65,830,535 49,418,394 39,347,996 15,872,828
Distributions to shareholders from
net investment income:
Trust A Shares.................. (16,893,397) (6,313,403) -- (4,576,371) (3,222,774) (309,779)
Investor A Shares............... (703,768) (72,934) -- (130,629) -- (4,337)
Investor C Shares............... (36,550) -- -- (15,606) -- (480)
Investor N Shares............... (742,442) -- -- (1,244,431) -- (11,255)
Distributions to shareholders from
net realized gain on
investments:
Trust A Shares.................. (41,049,376) (16,868,479) (6,438,849) (310,575) (1,600,973) --
Investor A Shares............... (1,840,132) (256,976) (114,778) (9,212) -- --
Investor C Shares............... (155,670) (56,236) (19,503) (1,861) -- --
Investor N Shares............... (2,225,891) (556,449) (574,543) (102,838) -- --
Net increase/(decrease) in net
assets from Fund share
transactions:
Trust A Shares.................. (37,565,902) (40,958,622) 35,062,583 (29,781,844) (12,649,164) 85,720,261
Investor A Shares............... 3,694,114 2,444,605 1,452,905 (565,148) 10,620 2,725,119
Investor C Shares............... 372,284 221,512 110,631 (121,760) -- 291,675
Investor N Shares............... 27,133,808 9,592,962 10,950,858 1,231,005 -- 15,707,758
------------- ------------ ------------ ------------ ------------ ------------
Net increase in net assets........ 212,292,699 173,384,114 106,259,839 13,789,124 21,885,705 119,991,790
NET ASSETS:
Beginning of year................. 880,700,847 754,936,906 202,142,757 220,951,589 123,146,754 10,376,553
------------- ------------ ------------ ------------ ------------ ------------
End of year....................... $1,092,993,546 $928,321,020 $308,402,596 $234,740,713 $145,032,459 $130,368,343
============== ============ ============ ============ ============ ============
Undistributed net investment
income at end of year........... $ 3,324,753 $ 623,439 $ -- $ 1,336,901 $ 559,764 $ 85,147
============== ============ ============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 150
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1994
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS
NATIONS CAPITAL EMERGING BALANCED EQUITY DISCIPLINED
VALUE GROWTH GROWTH ASSETS INDEX EQUITY
FUND FUND FUND FUND FUND* FUND**
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss)......... $ 15,905,183 $ 5,874,211 $ (602,199) $ 5,186,951 $ 2,704,429 $ 6,240
Net realized gain/(loss) on
investments........................ 44,428,639 20,667,121 7,614,329 2,124,345 1,160,792 (413,394)
Change in unrealized appreciation/
(depreciation) of investments...... (68,927,667) (15,641,309) 2,098,503 (12,250,587) (3,348,410) 441,052
------------ ------------ ------------ ------------ ------------ -----------
Net increase/(decrease) in net assets
resulting from operations.......... (8,593,845) 10,900,023 9,110,633 (4,939,291) 516,811 33,898
Distributions to shareholders from
net investment income:
Trust A Shares..................... (13,766,977) (5,028,665) -- (4,292,175) (2,066,295) (6,113)
Investor A Shares.................. (517,366) (58,336) -- (107,313) -- (116)
Investor C Shares.................. (24,215) -- -- (15,801) -- --
Investor N Shares.................. (309,175) -- -- (769,113) -- (11)
Distributions to shareholders from
net realized gain on investments:
Trust A Shares..................... (28,230,888) (235,983) (1,722,720) -- -- --
Investor A Shares.................. (1,320,383) (4,039) (27,035) -- -- --
Investor C Shares.................. (119,312) (1,055) (6,038) -- -- --
Investor N Shares.................. (467,946) (3,860) (52,823) -- -- --
Distributions to shareholders from
capital:
Trust A Shares..................... -- -- -- -- -- (3,133)
Investor A Shares.................. -- -- -- -- -- (60)
Investor C Shares.................. -- -- -- -- -- --
Investor N Shares.................. -- -- -- -- -- (6)
Net increase/(decrease) in net assets
from Fund share transactions:
Trust A Shares..................... 141,823,408 65,765,165 54,250,065 (8,681,327) 124,696,238 1,818,607
Investor A Shares.................. 4,789,875 (304,011) 1,052,641 (90,193) -- 111,006
Investor C Shares.................. 173,989 (575,658) 47,602 (198,022) -- --
Investor N Shares.................. 34,026,771 14,210,525 12,051,030 27,406,781 -- 178,688
------------ ------------ ------------ ------------ ------------ -----------
Net increase in net assets........... 127,463,936 84,664,106 74,703,355 8,313,546 123,146,754 2,132,760
NET ASSETS:
Beginning of year.................... 753,236,911 670,272,800 127,439,402 212,638,043 -- 8,243,793
------------ ------------ ------------ ------------ ------------ -----------
End of year.......................... $880,700,847 $754,936,906 $202,142,757 $220,951,589 $123,146,754 $10,376,553
============ ============ ============ ============ ============ ===========
Undistributed net investment income
at end of year..................... $ 3,965,488 $ 1,443,806 $ -- $ 705,130 $ 638,134 $ --
============ ============ ============ ============ ============ ===========
</TABLE>
- ---------------
* The Nations Equity Index Fund commenced operations on December 15, 1993.
** The period for the Nations Disciplined Equity Fund reflects operations from
April 30, 1994 through November 30, 1994. (Note 8)
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 151
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
NATIONS VALUE FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold................................... 14,348,782 $ 200,019,718 24,151,217 $ 330,303,535
Issued in exchange for Class A Shares
of The Capitol Mutual Funds
Equity Portfolio..................... -- -- 2,139,143 28,600,342
Issued as reinvestment of dividends.... 2,007,735 24,844,400 373,924 5,070,322
Redeemed............................... (18,925,597) (262,430,020) (16,543,074) (222,150,791)
----------- ------------ ----------- ------------
Net increase/(decrease)................ (2,569,080) $ (37,565,902) 10,121,210 $ 141,823,408
=========== ============ =========== ============
INVESTOR A SHARES:
Sold................................... 632,785 $ 9,169,259 660,750 $ 8,920,870
Issued in exchange for Class B Shares
of The Capitol Mutual Funds
Equity Portfolio..................... -- -- 19,677 262,688
Issued as reinvestment of dividends.... 196,415 2,460,725 266,697 3,629,175
Redeemed............................... (569,919) (7,935,870) (593,790) (8,022,858)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 259,281 $ 3,694,114 353,334 $ 4,789,875
=========== ============ =========== ============
INVESTOR C SHARES:
Sold................................... 64,912 $ 937,227 82,153 $ 1,124,360
Issued as reinvestment of dividends.... 15,572 191,440 19,831 268,695
Redeemed............................... (51,592) (756,383) (90,540) (1,219,066)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 28,892 $ 372,284 11,444 $ 173,989
=========== ============ =========== ============
INVESTOR N SHARES :
Sold................................... 2,207,667 $ 31,834,371 2,674,590 $ 36,038,535
Issued as reinvestment of dividends.... 232,059 2,893,160 100,887 1,372,747
Redeemed............................... (541,393) (7,593,723) (252,251) (3,384,511)
----------- ------------ ----------- ------------
Net increase........................... 1,898,333 $ 27,133,808 2,523,226 $ 34,026,771
=========== ============ =========== ============
<CAPTION>
NATIONS CAPITAL GROWTH FUND
----------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold................................... 16,298,665 $ 198,460,477 27,082,507 $ 309,813,478
Issued in exchange for Class A Shares
of The Capitol Mutual Funds
Equity Portfolio..................... -- -- -- --
Issued as reinvestment of dividends.... 1,313,582 14,351,770 33,231 378,603
Redeemed............................... (20,650,669) (253,770,869) (21,559,659) (244,426,916)
----------- ------------ ----------- ------------
Net increase/(decrease)................ (3,038,422) $ (40,958,622) 5,556,079 $ 65,765,165
=========== ============ =========== ============
INVESTOR A SHARES:
Sold................................... 1,641,993 $ 22,288,613 227,329 $ 2,590,259
Issued in exchange for Class B Shares
of The Capitol Mutual Funds
Equity Portfolio..................... -- -- -- --
Issued as reinvestment of dividends.... 29,457 322,885 3,414 39,004
Redeemed............................... (1,476,579) (20,166,893) (257,065) (2,933,274)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 194,871 $ 2,444,605 (26,322) $ (304,011)
=========== ============ =========== ============
INVESTOR C SHARES:
Sold................................... 43,310 $ 526,572 18,705 $ 214,035
Issued as reinvestment of dividends.... 5,274 55,903 92 1,049
Redeemed............................... (27,820) (360,963) (68,832) (790,742)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 20,764 $ 221,512 (50,035) $ (575,658)
=========== ============ =========== ============
INVESTOR N SHARES :
Sold................................... 1,110,085 $ 13,768,914 1,415,969 $ 16,069,390
Issued as reinvestment of dividends.... 50,490 537,215 331 3,783
Redeemed............................... (383,634) (4,713,167) (165,619) (1,862,648)
----------- ------------ ----------- ------------
Net increase........................... 776,941 $ 9,592,962 1,250,681 $ 14,210,525
=========== ============ =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 152
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS EMERGING GROWTH FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold................................... 4,681,228 $ 57,544,918 8,166,260 $ 91,682,920
Issued as reinvestment of dividends.... 425,966 4,485,418 7,836 87,526
Redeemed............................... (2,225,688) (26,967,753) (3,334,666) (37,520,381)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 2,881,506 $ 35,062,583 4,839,430 $ 54,250,065
=========== ============= =========== =============
INVESTOR A SHARES:
Sold................................... 227,306 $ 2,782,921 142,784 $ 1,612,909
Issued as reinvestment of dividends.... 10,673 111,756 2,397 26,701
Redeemed............................... (116,033) (1,441,772) (53,510) (586,969)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 121,946 $ 1,452,905 91,671 $ 1,052,641
=========== ============= =========== =============
INVESTOR C SHARES:
Sold................................... 21,665 $ 257,913 13,151 $ 142,722
Issued as reinvestment of dividends.... 1,887 19,492 543 6,007
Redeemed............................... (13,822) (166,774) (8,860) (101,127)
----------- ------------ ----------- ------------
Net increase/(decrease)................ 9,730 $ 110,631 4,834 $ 47,602
=========== ============= =========== =============
INVESTOR N SHARES:
Sold................................... 1,133,417 $ 13,763,774 1,154,104 $ 12,845,956
Issued as reinvestment of dividends.... 53,315 552,878 4,623 51,365
Redeemed............................... (278,464) (3,365,794) (76,006) (846,291)
----------- ------------ ----------- ------------
Net increase........................... 908,268 $ 10,950,858 1,082,721 $ 12,051,030
=========== ============= =========== =============
<CAPTION>
NATIONS BALANCED ASSETS
FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------- ----------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold................................... 4,299,646 $ 49,368,656 8,751,677 $ 94,454,382
Issued as reinvestment of dividends.... 310,934 3,525,690 150,747 1,604,956
Redeemed............................... (7,276,293) (82,676,190) (9,759,219) (104,740,665)
---------- ------------- ---------- -------------
Net increase/(decrease)................ (2,665,713) $ (29,781,844) (856,795) $ (8,681,327)
========== ============= ========== =============
INVESTOR A SHARES:
Sold................................... 79,414 $ 918,636 145,010 $ 1,578,550
Issued as reinvestment of dividends.... 12,227 138,700 9,967 106,366
Redeemed............................... (143,047) (1,622,484) (164,673) (1,775,109)
---------- ------------- ---------- -------------
Net increase/(decrease)................ (51,406) $ (565,148) (9,696) $ (90,193)
========== ============= ========== =============
INVESTOR C SHARES:
Sold................................... 10,542 $ 128,058 3,080 $ 33,089
Issued as reinvestment of dividends.... 1,510 17,114 1,450 15,444
Redeemed............................... (25,005) (266,932) (23,352) (246,555)
---------- ------------- ---------- -------------
Net increase/(decrease)................ (12,953) $ (121,760) (18,822) $ (198,022)
========== ============= ========== =============
INVESTOR N SHARES:
Sold................................... 868,040 $ 10,073,071 3,187,761 $ 34,643,155
Issued as reinvestment of dividends.... 113,740 1,291,982 69,311 735,874
Redeemed............................... (899,309) (10,134,048) (750,078) (7,972,248)
---------- ------------- ---------- -------------
Net increase........................... 82,471 $ 1,231,005 2,506,994 $ 27,406,781
========== ============= ========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 153
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS DISCIPLINED EQUITY
NATIONS EQUITY INDEX FUND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994* NOVEMBER 30, 1995
---------------------------- ---------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST A SHARES:
Sold........................ 5,782,359 $ 65,557,132 19,980,612 $198,737,016 6,862,543 $103,834,207
Issued as reinvestment
of dividends.............. 211,023 2,255,552 56,290 554,406 6,766 106,057
Redeemed.................... (7,275,709) (80,461,848) (7,525,666) (74,595,184) (1,187,030) (18,220,003)
----------- ------------- ----------- ------------- ----------- -------------
Net increase/(decrease)..... (1,282,327) $(12,649,164) 12,511,236 $124,696,238 5,682,279 $ 85,720,261
========== ============ ========== ============ ========= ============
<CAPTION>
PERIOD ENDED
NOVEMBER 30, 1994***
----------------------------
SHARES DOLLARS
--------------------------------------------------------------------------------------------
<S> <C> <C>
TRUST A SHARES:
Sold........................ 245,701 $ 3,008,180
Issued as reinvestment
of dividends.............. 446 5,571
Redeemed.................... (92,387) (1,195,144)
---------- -----------
Net increase/(decrease)..... 153,760 $ 1,818,607
========== ===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
NOVEMBER 30, 1995*
----------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTOR A SHARES:
Sold........................ 865 $ 10,620 175,763 $ 2,801,016
Issued as reinvestment
of dividends.............. -- -- 258 4,102
Redeemed.................... -- -- (5,530) (79,999)
-------- ---------- -------- ------------
Net increase................ 865 $ 10,620 170,491 $ 2,725,119
======== ============ ======== ============
<CAPTION>
<S> <C> <C>
INVESTOR A SHARES:
Sold........................ 8,031 $ 124,695
Issued as reinvestment
of dividends.............. 14 177
Redeemed.................... (1,093) (13,866)
--------- -----------
Net increase................ 6,952 $ 111,006
========= ===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
NOVEMBER 30, 1995**
----------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTOR C SHARES:
Sold........................ 24,963 $ 391,195
Issued as reinvestment
of dividends.............. 30 480
Redeemed.................... (6,012) (100,000)
---------- ------------
Net increase................ 18,981 $ 291,675
========== ============
<CAPTION>
<S> <C> <C>
INVESTOR C SHARES:
Sold........................
Issued as reinvestment
of dividends..............
Redeemed....................
Net increase................
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INVESTOR N SHARES:
Sold........................ 1,007,447 $ 16,060,453
Issued as reinvestment
of dividends.............. 681 11,015
Redeemed.................... (22,740) (363,710)
--------- ------------
Net increase................ 985,388 $ 15,707,758
========= ============
<CAPTION>
PERIOD ENDED
NOVEMBER 30, 1994**
----------------------
<S> <C> <C>
INVESTOR N SHARES:
Sold........................ 13,625 $ 178,688
Issued as reinvestment
of dividends.............. -- --
Redeemed.................... -- --
--------- -----------
Net increase................ 13,625 $ 178,688
========= ===========
</TABLE>
- ---------------
* The Nations Equity Index Fund's Trust A Shares and Investor A Shares
commenced operations on December 15, 1993 and October 24, 1995,
respectively.
** The Nations Disciplined Equity Fund's Investor C Shares and Investor N
Shares commenced operations on May 10, 1995 and May 20, 1994, respectively.
*** This period reflects operations from April 30, 1994 through November 30,
1994. (Note 9)
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 154
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
-------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90 11/30/89*#
NATIONS VALUE FUND
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year........ $ 12.98 $ 13.74 $ 12.45 $ 11.16 $ 9.71 $ 10.04 $10.00
-------- -------- -------- -------- ------- ------- ------
Net investment income..................... 0.27 0.24 0.24 0.28 0.34 0.35 0.08
Net realized and unrealized gain/(loss) on
investments.............................. 3.91 (0.23) 1.38 1.57 1.47 (0.36) (0.04)
-------- -------- -------- -------- ------- ------- ------
Net increase/(decrease) in net assets
resulting from investment operations..... 4.18 0.01 1.62 1.85 1.81 (0.01) 0.04
Distributions:
Dividends from net investment income...... (0.28) (0.23) (0.24) (0.27) (0.36) (0.32) --
Distributions from net realized capital
gains.................................... (0.67) (0.54) (0.09) (0.29) -- -- --
-------- -------- -------- -------- ------- ------- ------
Total distributions....................... (0.95) (0.77) (0.33) (0.56) (0.36) (0.32) --
-------- -------- -------- -------- ------- ------- ------
Net asset value, end of year.............. $ 16.21 $ 12.98 $ 13.74 $ 12.45 $ 11.16 $ 9.71 $10.04
======= ======= ======= ======= ======= ======= ======
Total return++............................ 34.53% (0.08)% 13.19% 17.00%+++ 18.79%+++ (0.16)%+++ 0.40%+++
======= ======= ======= ======= ======= ======= ======
Ratios to average net assets/supplemental
data:
Net assets, end of year (in 000's)........ $956,669 $799,743 $707,185 $282,138 $82,360 $19,769 $5,161
Ratio of operating expenses to average net
assets................................... 0.94% 0.93% 0.96% 0.90% 0.53% 0.21% 0.49%+
Ratio of net investment income to average
net assets............................... 1.90% 1.85% 1.98% 2.31% 3.33% 4.19% 4.41%+
Portfolio turnover rate................... 63% 75% 64% 60% 51% 24% --
Ratio of operating expenses to average net
assets without waivers
and/or reimbursements.................... 0.94% 0.93% 0.97% 0.97% 0.99% 1.11% 1.41%+
Net investment income per share without
waivers and/or
reimbursements........................... $ 0.27 $ 0.24 $ 0.24 $ 0.27 $ 0.30 $ 0.26 $ 0.06
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
---------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92**
NATIONS CAPITAL GROWTH FUND
---------------------------------------------
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year........ $ 11.23 $ 11.08 $ 10.68 $ 10.00
------- ------- ------- -------
Net investment income/(loss).............. 0.09 0.09 0.09 0.02
Net realized and unrealized gain on
investments.............................. 3.28 0.14 0.42 0.66##
------- ------- ------- -------
Net increase in net assets resulting from
investment operations.................... 3.37 0.23 0.51 0.68
Distributions:
Dividends from net investment income...... (0.10) (0.08) (0.10) --
Distributions from net realized gains..... (0.26) (0.00)(a) (0.01) --
------- ------- ------- -------
Total distributions....................... (0.36 ) (0.08 ) (0.11 ) --
------- ------- ------- -------
Net asset value, end of year.............. $ 14.24 $ 11.23 $ 11.08 $ 10.68
======= ======= ======= ========
Total return++............................ 30.96% 2.14% 4.84% 6.80%+++
------- ------- ------- -------
Ratios to average net assets/supplemental
data:
Net assets, end of year (in 000's)........ $867,361 $717,914 $646,661 $728,629
Ratio of operating expenses to average net
assets................................... 0.98% 0.90% 0.80% 0.30%+
Ratio of net investment income/(loss) to
average net assets....................... 0.71% 0.85% 0.84% 1.33%+
Portfolio turnover rate................... 80% 56% 81% 7%
Ratio of operating expenses to average net
assets without waivers................... 0.98% 0.91% 0.89% 1.05%+
Net investment income/(loss) per share
without waivers.......................... $ 0.09 $ 0.09 $ 0.08 $ 0.01
</TABLE>
- ---------------
* The Nations Value Fund's Trust A, Investor A, Investor C Shares and Investor
N Shares commenced operations on September 19, 1989, December 6, 1989, June
17, 1992 and June 7, 1993, respectively.
** The Nations Capital Growth Fund's Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares commenced operations on September
30, 1992, October 2, 1992, October 2, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately presents the per share data for the period
since the use of the undistributed income method did not accord with the
results of operations.
## The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of the
portfolio.
(a) Amount represents less than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 155
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
--------------------------------------------------------------------- ---------------------------------------------------
YEAR YEAR YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90* 11/30/95 11/30/94 11/30/93 11/30/92*
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 12.98 $ 13.72 $ 12.45 $ 11.16 $ 9.71 $ 10.04 $ 12.90 $ 13.64 $ 12.41 $ 11.63
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
0.23 0.20 0.22 0.26 0.34 0.35 0.13 0.12 0.13 0.07
3.92 (0.20) 1.35 1.59 1.47 (0.36) 3.88 (0.22) 1.32 0.78
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
4.15 0.00 1.57 1.85 1.81 (0.01) 4.01 (0.10) 1.45 0.85
(0.25) (0.20) (0.21) (0.27) (0.36) (0.32) (0.15) (0.10) (0.13) (0.07)
(0.67) (0.54) (0.09) (0.29) -- -- (0.67) (0.54) (0.09) --
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(0.92) (0.74) (0.30) (0.56) (0.36) (0.32) (0.82) (0.64) (0.22) (0.07)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
$ 16.21 $ 12.98 $ 13.72 $ 12.45 $ 11.16 $ 9.71 $ 16.09 $ 12.90 $ 13.64 $ 12.41
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
34.22% (0.17)% 12.80% 16.96+++ 18.79%+++ (0.16) +++ 33.15% (0.92)% 11.85% 7.33%+++
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
$48,440 $35,445 $32,607 $24,536 $13,514 $ 7,020 $ 4,185 $ 2,983 $ 2,997 $ 1,286
1.19% 1.18% 1.21% 1.06% 0.53% 0.21%+ 1.94% 1.93% 1.96% 1.98%+
1.65% 1.60% 1.73% 2.15% 3.33% 4.19%+ 0.90% 0.85% 0.98% 1.22%+
63% 75% 64% 60% 51% 24% 63% 75% 64% 60%
1.19% 1.18% 1.22% 1.15% 0.99% 1.11%+ 1.94% 1.93% 1.97% 1.98%+
$ 0.23 $ 0.21 $ 0.22 $ 0.25 $ 0.30 $ 0.26 $ 0.13 $ 0.12 $ 0.13 $ 0.07
<CAPTION>
INVESTOR N SHARES
-------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93*
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 12.94 $ 13.71 $ 13.08
------- ------- -------
0.17 0.15 0.11
3.89 (0.22) 0.63
------- ------- -------
4.06 (0.07) 0.74
(0.18) (0.16) (0.11)
(0.67) (0.54) --
------- ------- -------
(0.85) (0.70) (0.11)
------- ------- -------
$ 16.15 $ 12.94 $ 13.71
======= ======= =======
33.55% (0.69)% 5.65%
======= ======= =======
$83,699 $42,530 $10,449
1.69% 1.68% 1.71%+
1.15% 1.10% 1.23%+
63% 75% 64%
1.69% 1.68% 1.72%+
$ 0.17 $ 0.15 $ 0.11
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
----------------------------------------------- ---------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92** 11/30/95 11/30/94 11/30/93 11/30/92**
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 11.21 $ 11.06 $ 10.67 $ 10.00 $ 11.14 $ 11.01 $ 10.67 $ 10.00
------- ------- ------- ------- ------- ------- ------- -------
0.06 0.07 0.07 0.01 (0.03) (0.02) (0.00)(a) (0.00)(a)
3.28 0.14 0.41 0.66## 3.24 0.15 0.38 0.67##
------- ------- ------- ------- ------- ------- ------- -------
3.34 0.21 0.48 0.67 3.21 0.13 0.38 0.67
(0.07) (0.06) (0.08) -- -- -- (0.03) --
(0.26) (0.00)(a) (0.01) -- (0.26) (0.00)(a) (0.01) --
------- ------- ------- ------- ------- ------- ------- -------
(0.33) (0.06) (0.09) -- (0.26) (0.00)(a) (0.04) 0.00(a)
------- ------- ------- ------- ------- ------- ------- -------
$ 14.22 $ 11.21 $ 11.06 $ 10.67 $ 14.09 $ 11.14 $ 11.01 $ 10.67
======= ======= ======= ======= ======= ======= ======= =======
30.70% 1.93% 4.56% 6.70+++ 29.61% 1.22% 3.61% 6.70%+++
======= ======= ======= ======= ======= ======= ======= =======
$16,770 $11,038 $11,182 $ 1,225 $ 3,322 $ 2,394 $ 2,919 $ 406
1.23% 1.15% 1.05% 0.55%+ 1.98% 1.90% 1.80% 1.30%+
0.46% 0.60% 0.59% 1.08%+ (0.29)% (0.15)% (0.16)% 0.33%+
80% 56% 81% 7% 80% 56% 81% 7%
1.23% 1.16% 1.14% 1.30%+ 1.98% 1.91% 1.89% 2.05%+
$ 0.06 $ 0.07 $ 0.06 $ 0.00(a) $ (0.03) $ (0.02) $ 0.00(a) $ 0.00(a)
<CAPTION>
INVESTOR N SHARES
-------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93**
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 11.17 $ 11.05 $ 10.55
------- ------- -------
(0.03) (0.01) (0.01)
3.27 0.13 0.53
------- ------- -------
3.24 0.12 0.52
-- -- (0.02)
(0.26) (0.00)(a) --
------- ------- -------
(0.26) (0.00)(a) (0.02)
------- ------- -------
$ 14.15 $ 11.17 $ 11.05
======= ======= =======
29.80% 1.12% 4.95%
======= ======= =======
$40,868 $23,591 $ 9,511
1.98% 1.90% 1.80%+
(0.29)% (0.15)% (0.16)%+
80% 56% 81%
1.98% 1.91% 1.89%+
$ (0.03) $ (0.01) $ (0.02)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 156
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
--------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94# 11/30/93*
------------------------------------
<S> <C> <C> <C>
NATIONS EMERGING GROWTH FUND
Operating performance:
Net asset value, beginning of year................................ $ 11.41 $ 10.87 $ 10.00
-------- -------- --------
Net investment income/(loss)...................................... 0.01 (0.03) (0.01)
Net realized and unrealized gain on investments................... 3.26 0.71 0.89
-------- -------- --------
Net increase in net assets resulting from investment operations... 3.27 0.68 0.88
Distributions:
Distributions from net realized gains............................. (0.40) (0.14) (0.01)
-------- -------- --------
Total distributions............................................... (0.40) (0.14) (0.01)
-------- -------- --------
Net asset value, end of year...................................... $ 14.28 $ 11.41 $ 10.87
-------- -------- --------
Total return++.................................................... 29.95% 6.26% 8.81%
-------- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)................................ $269,484 $182,459 $121,281
Ratio of operating expenses to average net assets................. 0.98% 1.01% 0.80%+
Ratio of net investment income/(loss) to average net assets....... 0.08% (0.29)% (0.15)%+
Portfolio turnover rate........................................... 139% 129% 159%
Ratio of operating expenses to average net assets without
waivers......................................................... 0.98% 1.01% 1.01%+
Net investment income/(loss) per share without waivers............ $ 0.01 $ (0.03) $ (0.03)
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-------------------------------------------------------
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92**
----------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS BALANCED ASSETS FUND
Operating performance:
Net asset value, beginning of year................................ $ 10.44 $ 10.87 $ 10.24 $ 10.00
-------- -------- -------- --------
Net investment income............................................. 0.38 0.25 0.29 0.06
Net realized and unrealized gain/(loss) on investments............ 2.21 (0.43) 0.64 0.18##
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting from investment
operations...................................................... 2.59 (0.18) 0.93 0.24
Distributions:
Dividends from net investment income.............................. (0.33) -- -- --
Distributions from net realized gains............................. (0.02) (0.25) (0.30) --
-------- -------- -------- --------
Total distributions............................................... (0.35) (0.25) (0.30) --
-------- -------- -------- --------
Net asset value, end of year...................................... $ 12.68 $ 10.44 $ 10.87 $ 10.24
======== ======== ======== ========
Total return++.................................................... 25.27% (1.73)% 9.22% 2.40%+++
======== ======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)................................ $163,198 $162,215 $178,270 $111,953
Ratio of operating expenses to average net assets................. 0.99% 0.98% 0.90% 0.30%+
Ratio of net investment income to average net assets.............. 3.25% 2.31% 2.82% 3.85%+
Portfolio turnover rate........................................... 174% 156% 50% 79%
Ratio of operating expenses to average net assets without
waivers......................................................... 0.99% 0.99% 0.97% 1.05%+
Net investment income per share without waivers................... $ 0.38 $ 0.25 $ 0.29 $ 0.05
</TABLE>
- ---------------
* The Nations Emerging Growth Fund's Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares commenced operations on December 4,
1992, December 10, 1992, December 18, 1992 and June 7, 1993, respectively.
** The Nations Balanced Assets Fund's Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares commenced operations on September
30, 1992, October 2, 1992, October 2, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately presents the per share data for the period
since the use of the undistributed income method did not accord with the
results of operations.
## The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of the
portfolio.
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 157
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
- ---------------------------------- ---------------------------------- ---------------------
YEAR YEAR PERIOD YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94# 11/30/93* 11/30/95 11/30/94# 11/30/93* 11/30/95 11/30/94#
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$11.35 $10.85 $ 9.87 $11.20 $10.78 $ 9.89 $ 11.24 $ 10.82
------ ------ ------ ------ ------ ------ ------- -------
(0.01) (0.06) (0.03) (0.08) (0.14) (0.09) (0.07) (0.14)
3.23 0.70 1.02 3.15 0.70 0.98 3.16 0.70
------ ------ ------ ------ ------ ------ ------- -------
3.22 0.64 0.99 3.07 0.56 0.89 3.09 0.56
(0.40) (0.14) (0.01) (0.40) (0.14) -- (0.40) (0.14)
------ ------ ------ ------ ------ ------ ------- -------
(0.40) (0.14) (0.01) (0.40) (0.14) -- (0.40) (0.14)
------ ------ ------ ------ ------ ------ ------- -------
$14.17 $11.35 $10.85 $13.87 $11.20 $10.78 $ 13.93 $ 11.24
====== ====== ====== ====== ====== ====== ======= =======
29.65% 5.90% 9.99% 28.67% 5.19% 9.00% 28.75% 5.17%
====== ====== ====== ====== ====== ====== ======= =======
$5,765 $3,234 $2,095 $ 805 $ 542 $ 469 $32,349 $15,909
1.23% 1.26% 1.05%+ 1.98% 2.01% 1.80%+ 1.98% 2.01%
(0.17)% (0.54)% (0.40)%+ (0.92)% (1.29)% (1.15)%+ (0.92)% (1.29)%
139% 129% 159% 139% 129% 159% 139% 129%
1.23% 1.26% 1.26%+ 1.98% 2.01% 2.01%+ 1.98% 2.01%
$(0.01) $(0.05) $(0.04) $(0.08) $(0.12) $(0.11) $ (0.07) $ (0.09)
<CAPTION>
- --------
PERIOD
ENDED
11/30/93*
- -------------------------------------------------------------------------------------------------------------------
<S><C>
$ 9.88
------
(0.02)
0.96
------
0.94
--
------
--
------
$ 10.82
======
9.51%
======
$ 3,594
1.80%+
(1.15)%+
159%
2.01%+
$ (0.03)
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
- ------------------------------------------------- ------------------------------------------------- ---------------------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92** 11/30/95 11/30/94 11/30/93 11/30/92** 11/30/95 11/30/94
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
$10.42 $10.86 $10.24 $10.00 $10.38 $10.82 $10.23 $10.00 $ 10.40 $ 10.85
------ ------ ------ ------- ------ ------ ------ ------- ------- -------
0.34 0.22 0.29 0.01 0.26 0.14 0.23 0.01 0.28 0.17
2.23 (0.44) 0.62 0.23## 2.21 (0.43) 0.59 0.22## 2.22 (0.44)
------ ------ ------ ------- ------ ------ ------ ------- ------- -------
2.57 (0.22) 0.91 0.24 2.47 (0.29) 0.82 0.23 2.50 (0.27)
(0.31) -- -- -- (0.22) -- -- -- (0.25) --
(0.02) (0.22) (0.29) -- (0.02) (0.15) (0.23) -- (0.02) (0.18)
------ ------ ------ ------- ------ ------ ------ ------- ------- -------
(0.33) (0.22) (0.29) -- (0.24) (0.15) (0.23) -- (0.27) (0.18)
------ ------ ------ ------- ------ ------ ------ ------- ------- -------
$12.66 $10.42 $10.86 $10.24 $12.61 $10.38 $10.82 $10.23 $ 12.63 $ 10.40
====== ====== ====== ======= ====== ====== ====== ======= ======= =======
25.01% (2.02)% 8.93% 2.40%+++ 24.03% (2.72)% 8.06% 2.30%+++ 24.35% (2.51)%
======= ====== ====== ======= ====== ====== ====== ======= ======= =======
$5,276 $4,881 $5,191 $ 547 $ 992 $ 951 $1,196 $ 156 $65,275 $52,905
1.24% 1.23% 1.15% 0.55%+ 1.99% 1.98% 1.90% 1.30%+ 1.74 % 1.73%
3.00% 2.06% 2.57% 3.60%+ 2.25% 1.31% 1.82% 2.85%+ 2.50 % 1.56%
174% 156% 50% 79% 174% 156% 50% 79% 174 % 156%
1.24% 1.24% 1.22% 1.30%+ 1.99% 1.99% 1.97% 2.05%+ 1.74 % 1.74%
$ 0.34 $ 0.22 $ 0.28 $ 0.01 $ 0.26 $ 0.14 $ 0.22 $ 0.01 $ 0.28 $ 0.17
<CAPTION>
- --------
PERIOD
ENDED
11/30/93**
- -------------------------------------------------------------------------------------------------------------------
<S><C>
$ 10.61
-------
0.14
0.23
-------
0.37
--
(0.13)
-------
(0.13)
-------
$ 10.85
=======
3.45%
=======
$ 27,982
1.65%+
2.07%+
50%
1.72%+
$ 0.14
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 158
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
----------------------
YEAR YEAR
ENDED ENDED
11/30/95 11/30/94*
----------------------
<S> <C> <C>
NATIONS EQUITY INDEX FUND
Operating performance:
Net asset value, beginning of year........................................ $ 9.84 $ 10.00
-------- ----------
Net investment income..................................................... 0.28 0.24
Net realized and unrealized gain/(loss) on investments.................... 3.20 (0.21)
-------- ----------
Net increase in net assets resulting from investment operations........... 3.48 0.03
Distributions:
Dividends from net investment income...................................... (0.28) (0.19)
Distributions from net realized gains..................................... (0.13) --
-------- ----------
Total distributions....................................................... (0.41) (0.19)
-------- ----------
Net asset value, end of year.............................................. $ 12.91 $ 9.84
======== ========
Total return++............................................................ 36.35% 0.29%
======== ========
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)........................................ $145,021 $123,147
Ratio of operating expenses to average net assets......................... 0.37% 0.35%+
Ratio of operating expenses to average net assets including interest
expense................................................................. 0.38% --
Ratio of net investment income to average net assets...................... 2.44% 2.64%+
Portfolio turnover rate................................................... 18% 14%
Ratio of operating expenses to average net assets without waivers......... 0.78% 0.79%+
Net investment income per share without waivers........................... $ 0.23 $ 0.20
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------------------------------------
YEAR PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
11/30/95 11/30/94** 04/29/94** 04/30/93**
--------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS DISCIPLINED EQUITY FUND
Operating performance:
Net asset value, beginning of year........................................ $ 13.08 $ 13.31 $13.65 $10.00
-------- ---------- ---------- ----------
Net investment income/(loss).............................................. 0.10 0.01 (0.05) (0.03)
Net realized and unrealized gain/(loss) on investments.................... 3.96 (0.23)## 2.66 3.74
-------- ---------- ---------- ----------
Net increase/(decrease) in net assets resulting from investment
operations.............................................................. 4.06 (0.22) 2.61 3.71
Distributions:
Dividends from net investment income...................................... (0.08) (0.01) -- --
Distributions from net realized gains..................................... -- -- (2.95) (0.06)
Return of capital......................................................... -- (0.00)(a) -- --
-------- ---------- ---------- ----------
Total distributions....................................................... (0.08) (0.01) (2.95) (0.06)
-------- ---------- ---------- ----------
Net asset value, end of year.............................................. $ 17.06 $ 13.08 $13.31 $13.65
======== ======== ======= =======
Total return++............................................................ 31.13% (1.62)% 18.79% 37.13%
======== ======== ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)........................................ $109,939 $ 9,947 $8,079 $4,638
Ratio of operating expenses to average net assets......................... 1.30% 1.13%+ 1.20%+ 1.20%+
Ratio of net investment income/(loss) to average net assets............... 0.85% 0.12%+ (0.60)%+ (0.58)%+
Portfolio turnover rate................................................... 124% 177% 475% 203%
Ratio of operating expenses to average net assets without waivers......... 1.30% 1.56%+ 1.53%+ 1.31%+
Net investment income/(loss) per share without waivers.................... $ 0.10 $ (0.03) $(0.08) $(0.03)
</TABLE>
- ---------------
* The Nations Equity Index Fund's Trust A Shares and Investor A Shares
commenced operations on December 15, 1993 and October 24, 1995,
respectively.
** The period for the Nations Disciplined Equity Fund's Trust A Shares
reflects operations from April 30, 1994 through November 30, 1994. The
financial information for the fiscal periods through April 29, 1994 is
based on the financial information for The Capitol Mutual Funds Special
Equity Portfolio Class A Shares, which were reorganized into Trust A Shares
of Nations Disciplined Equity Fund (then named Nations Special Equity Fund)
as of the close of business on April 29, 1994. The Capitol Mutual Funds
Special Equity Portfolio Class A Shares commenced operations on October 1,
1992. (Note 8).
*** The period for the Nations Disciplined Equity Fund's Investor A Shares
reflects operations from April 30, 1994 through November 30, 1994. The
financial information for the fiscal periods through April 29, 1994 is
based on the financial information for The Capitol Mutual Funds Special
Equity Portfolio Class B Shares, which were reorganized into Investor A
Shares of Nations Disciplined Equity Fund (then named Nations Special
Equity Fund) as of the close of business on April 29, 1994. The Capitol
Mutual Funds Special Equity Portfolio Class B Shares commenced operations
on July 26, 1993. (Note 8).
**** The Nations Disciplined Equity Fund's Investor C Shares and Investor N
Shares commenced operations on May 10, 1995 and May 20, 1994, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
## The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of
the portfolio.
(a) Amount represents less than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 159
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR
A SHARES
--------
PERIOD
ENDED
11/30/95*
--------
<S> <C>
$12.28
--------
0.03
0.60
--------
0.63
--
--
--------
--
--------
$12.91
=======
5.13%
=======
$ 11
0.62%+
0.63%+
2.19%+
18%
1.03%+
$ 0.02
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
---------------------------------------- ----------------- -------------------------
YEAR PERIOD PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94*** 04/29/94*** 11/30/95**** 11/30/95 11/30/94****
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$13.06 $ 13.30 $ 14.94 $ 14.08 $ 13.02 $12.77
------ ------- ------- ------- ------- ------
0.09 0.00(a) (0.04) (0.00)(a) 0.03 (0.02)
3.96 (0.23)## 1.35 2.92 3.87 0.28
------ ------- ------- ------- ------- ------
4.05 (0.23) 1.31 2.92 3.90 0.26
(0.07) (0.01) -- (0.03) (0.03 ) (0.01)
-- -- (2.95) -- -- --
-- (0.00)(a) -- -- -- (0.00)(a)
------ ------- ------- ------- ------- ------
(0.07) (0.01) (2.95) (0.03) (0.03 ) (0.01)
------ ------- ------- ------- ------- ------
$17.04 $ 13.06 $ 13.30 $ 16.97 $ 16.89 $13.02
====== ======= ======= ======= ======= ======
31.05% (1.71)% 8.31% 20.78% 29.94 % 2.02%
====== ======= ======= ======= ======= ======
$3,234 $ 252 $ 165 $ 322 $16,874 $ 177
1.40% 1.23%+ 1.30%+ 2.30%+ 2.30 % 2.09%+
0.75% 0.02%+ (0.62)%+ (0.15)%+ (0.15 )% (0.84)%+
124% 177% 475% 124% 124 % 177%
1.40% 1.66%+ 1.74%+ 2.30%+ 2.30 % 2.52%+
$ 0.09 $ (0.07) $ (0.07) $ (0.00)(a) $ 0.03 $(0.03)%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 160
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended, (the "1940 Act"), as an open-end management investment
company. As of the date of this report, the Trust offers thirty-one separate
portfolios. Information presented in these financial statements pertains only to
the following funds: Nations Value Fund ("Value Fund"), Nations Capital Growth
Fund ("Capital Growth Fund"), Nations Balanced Assets Fund ("Balanced Assets
Fund"), Nations Emerging Growth Fund ("Emerging Growth Fund"), Nations Equity
Index Fund ("Equity Index Fund") and Nations Disciplined Equity Fund
("Disciplined Equity Fund") (formerly Nations Special Equity Fund)
(collectively, the "Funds"). The financial statements for the remaining funds
are presented under separate covers. The Funds (except Equity Index Fund)
currently offer four classes of shares: Trust A Shares, Investor A Shares,
Investor C Shares and Investor N Shares. The Equity Index Fund currently offers
only Trust A Shares and Investor A Shares. The Board of Trustees has authorized
the issuance of Trust B Shares for all Funds. As of November 30, 1995, no Trust
B Shares have been issued. Shareholders of a Fund have equal voting rights on
matters affecting all shareholders of the Fund equally. 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 following is a
summary of significant accounting policies followed by the Funds in the
preparation of their financial statements.
Securities Valuation: The Funds' portfolio securities which are traded on a
recognized stock exchange are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sale price
on the national securities market. Securities traded only on over-the-counter
markets are valued on the basis of the closing over-the-counter bid prices or if
no sale occurred on such day at the mean of the current bid and asked prices.
Certain securities may be valued by one or more principal market makers.
Restricted securities, securities for which market quotations are not readily
available and other assets are valued at fair value under the supervision of the
Board of Trustees. Short-term investments that mature in 60 days or less are
valued at amortized cost.
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 is
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights 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 rights. Unless permitted by the
Securities and Exchange Commission, the Fund will not enter into repurchase
agreements with the investment adviser, the distributor or any of their
affiliates. The Funds' investment adviser, acting under the supervision of the
Board of Trustees, 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.
Futures Contracts: The Equity Index Fund engages in futures contracts for the
purpose of hedging against changes in values of the Fund's securities or changes
in the prevailing levels of interest rates or currency exchange rates. Upon
entering into a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount. This is known as the "initial margin." Subsequent payments
("variation margin") are made or received by the Fund each day, depending on the
daily fluctuation of the value of the contract.
For futures positions, the asset is marked-to-market daily to reflect the
current market value of the futures contract. The daily changes in the contract
are recorded as unrealized gains or losses. The Fund recognizes a realized gain
or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in
64
<PAGE> 161
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
value of the hedged investments. In addition, there is the risk the Fund may not
be able to enter into a closing transaction because of an illiquid secondary
market.
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 on the
straight-line method and amortization of original issue discounts on the
effective yield method, is earned from 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 the classes based upon the relative net assets of each class.
Dividends and Distributions to Shareholders: It is the policy of each Fund to
declare and pay dividends from net investment income each calendar quarter. Each
Fund will distribute net realized capital gains (including net short-term
capital gains), unless offset by any available capital loss carryforward,
annually after the fiscal year in which earned. Additional distributions of net
investment income and capital gains may be made at the discretion of the Board
of Trustees 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 income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Fund, timing differences and differing characterization of distributions
made by the Fund as a whole.
Reclassifications are made to each Fund's capital accounts to reflect income and
gains available for distribution (or available capital loss carryforwards) under
Federal income tax regulations.
Reclassifications for the year ended November 30, 1995, were as follows:
<TABLE>
<CAPTION>
INCREASE/(DECREASE) INCREASE/(DECREASE)
INCREASE UNDISTRIBUTED NET ACCUMULATED NET
PAID-IN CAPITAL INVESTMENT INCOME REALIZED GAIN/(LOSS)
---------------------------------------------------------
<S> <C> <C> <C>
Value Fund............................. $ 181,127 $ -- $ (181,127)
Emerging Growth Fund................... 602,199 63,181 (665,380)
Balanced Assets Fund................... -- (7,876) 7,876
Disciplined Equity Fund................ 10,008 -- (10,008)
</TABLE>
Federal Income Taxes: 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 are allocated to the Funds based upon
relative net assets. Operating expenses directly attributable to a Fund or class
of shares are charged to that 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.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
The Trust has entered into an Investment Advisory Agreement with NationsBank,
N.A. (together with its predecessors "NationsBank"), as successor to NationsBank
of North Carolina, N.A., an indirect wholly-owned subsidiary of NationsBank
Corporation, with respect to the Funds.
Under the terms of this Investment Advisory Agreement, NationsBank is entitled
to receive an advisory fee at the following annual rates of average daily net
assets:
<TABLE>
<CAPTION>
ANNUAL RATE
----------
<S> <C>
Value Fund, Capital Growth Fund, Emerging Growth Fund,
Balanced Assets Fund and Disciplined Equity Fund.......................... 0.75%
Equity Index Fund........................................................... 0.50%
</TABLE>
65
<PAGE> 162
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Prior to April 1, 1995, the Disciplined Equity Fund paid an advisory fee at the
annual rate of 0.15% of average daily net assets.
Prior to April 1, 1995, ASB Capital Management, Inc., an indirect, wholly-owned
subsidiary of NationsBank Corporation, served as the sub-investment advisor to
the Disciplined Equity Fund, pursuant to a Sub-Investment Advisory Agreement,
and was entitled to receive a fee at the annual rate of 0.60% of average daily
net assets.
Stephens Inc. ("Stephens") serves as the Trust's administrator pursuant to an
Administration Agreement. First Data Investor Services Group, Inc., formerly The
Shareholder Services Group, Inc., a wholly-owned subsidiary of First Data
Corporation, serves as the Trust's co-administrator pursuant to a
Co-Administration Agreement. 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 average daily net assets of the Trust and the investment
portfolios of Nations Fund, Inc. and Nations Fund Portfolios, Inc. (other
registered open-end investment companies that are part of the Nations Fund
Family) on a combined basis.
For the year ended November 30, 1995, Stephens earned $1,441,785 from the Funds
for its services.
The investment 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 year ended November 30, 1995, the
investment adviser, voluntarily waived fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED
BY
ADVISER
----------
<S> <C>
Value Fund.................................................................. $ 25,350
Emerging Growth Fund........................................................ 3,328
Equity Index Fund........................................................... 523,117
Disciplined Equity Fund..................................................... 610
</TABLE>
No officer, director or employee of NationsBank, Stephens or First Data Investor
Services Group, Inc., or any affiliate thereof, receives any compensation from
the Trust for serving as a trustee or officer of the Trust. The Trust pays each
Trustee 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 also reimburses
expenses incurred by the Trustees in attending such meetings.
Each Fund's eligible Trustees may participate in a nonqualified 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 the Nations Treasury Fund, a fund of Nations Fund, Inc.
The expense for the deferred compensation plan is included in the "Trustees'
fees and expenses" line of the Statements of Operations.
NationsBank of Texas, N.A., acts as custodian for the Funds, and for the year
ended November 30, 1995, earned $438,518 for providing such services. First Data
Investor Services Group, Inc. serves as transfer agent for the Funds' shares.
NationsBank of Texas, N.A. acts as the sub-transfer agent for the Trust A Shares
of the Funds and for the year ended November 30, 1995, earned approximately
$35,000 for providing such services..
Stephens acts as distributor of the Funds' shares. For the year ended November
30, 1995, the Funds were informed that the distributor received $125,343,
representing commissions (sales charges) on sales of Investor A Shares of the
Funds. For the year ended November 30, 1995, the Funds were informed that the
distributor received $587,167, in contingent deferred sales charges from
Investor A, Investor C and Investor N Shares of the Funds. A substantial portion
of these fees are paid to affiliates of NationsBank.
For the year ended November 30, 1995, the Funds incurred total brokerage
commissions of $5,074,381, of which $76,001 was paid to Dean Witter Reynolds
Inc., an affiliate of NationsBank.
66
<PAGE> 163
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust has adopted a shareholder servicing and distribution plan ("Investor A
Plan") pursuant to Rule 12b-1 under the 1940 Act for the Investor A Shares of
the Funds. Pursuant to the Investor A Plan, the Funds pay fees directly to the
distributor. Payments by a Fund under the Investor A Plan may not exceed 0.25%,
on an annualized basis, of the average daily net assets of the Fund's Investor A
Shares. Fees paid pursuant to the Investor A Plan are charged as expenses of
Investor A Shares of a Fund as accrued.
The Trust also has adopted distribution plans pursuant to Rule 12b-1 under the
1940 Act with respect to Investor C ("Investor C Plan") and Investor N
("Investor N Plan") Shares of each Fund. Pursuant to the Investor C Plan and the
Investor N Plan, the Funds pay fees directly to the distributor. Payments under
the Investor C Plan and the Investor N Plan are accrued daily and paid monthly
at a rate that will not exceed 0.75%, on an annualized basis, of the average
daily net assets of the Investor C or Investor N Shares, respectively, of a
Fund. Fees paid pursuant to the Investor C Plan and the Investor N Plan are
charged as expenses of Investor C or Investor N Shares, respectively, of a Fund
as accrued.
The Trust also has adopted shareholder servicing plans with respect to Investor
C ("Investor C Servicing Plan") and Investor N ("Investor N Servicing Plan")
Shares of the Funds. Pursuant to the Investor C Servicing Plan and the Investor
N Servicing Plan, the Funds pay for certain shareholder support services that
are provided to the owners of Investor C and Investor N Shares by the servicing
agents that have entered into a shareholder servicing agreement with the Trust.
Payments under the Investor C Servicing Plan and the Investor N Servicing Plan
are accrued daily and paid monthly at a rate that will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the Investor C or Investor
N Shares, respectively, of a Fund. Fees paid pursuant to the Investor C
Servicing Plan and the Investor N Servicing Plan are charged as expenses of
Investor C or Investor N Shares, respectively, of a Fund as accrued.
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank.
For the year ended November 30, 1995, the Funds incurred the following amounts
pursuant to the above plans:
<TABLE>
<CAPTION>
FEES PAID PURSUANT TO:
INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
PLAN PLAN SERVICING PLAN PLAN SERVICING PLAN
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Value Fund....................... $ 100,864 $ 26,958 $8,986 $ 299,691 $149,846
Capital Growth Fund.............. 33,996 21,867 7,289 235,790 78,596
Emerging Growth Fund............. 10,934 5,101 1,700 174,600 58,200
Balanced Assets Fund............. 12,281 6,269 2,090 279,150 142,771
Equity Index Fund................ 3 N/A N/A N/A N/A
Disciplined Equity Fund.......... 926 889 296 29,694 9,898
</TABLE>
For the year ended November 30, 1995, the effective rates paid by the Funds, as
a percentage of average daily net assets, under the shareholder servicing and
distribution plans were as follows:
<TABLE>
<CAPTION>
INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
PLAN PLAN SERVICING PLAN PLAN SERVICING PLAN
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Value Fund........................ 0.25% 0.75% 0.25% 0.50% 0.25%
Capital Growth Fund............... 0.25 0.75 0.25 0.75 0.25
Emerging Growth Fund.............. 0.25 0.75 0.25 0.75 0.25
Balanced Assets Fund.............. 0.25 0.75 0.25 0.50 0.25
Equity Index Fund................. 0.25 N/A N/A N/A N/A
Disciplined Equity Fund........... 0.10 0.75 0.25 0.75 0.25
</TABLE>
67
<PAGE> 164
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. PURCHASES AND SALES OF SECURITIES.
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. government securities and short-term investments, for the year ended
November 30, 1995, was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------------
<S> <C> <C>
Value Fund............................................ $571,750,034 $616,414,004
Capital Growth Fund................................... 619,972,760 621,002,449
Emerging Growth Fund.................................. 329,152,829 302,027,137
Balanced Assets Fund.................................. 165,475,147 189,234,173
Equity Index Fund..................................... 21,863,172 37,315,167
Disciplined Equity Fund............................... 162,927,008 62,329,603
</TABLE>
The aggregate cost of purchases and proceeds from sales of securities of
long-term U.S. government securities for the year ended November 30, 1995, was
as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------------
<S> <C> <C>
Balanced Assets Fund.................................. $197,232,820 $218,311,906
</TABLE>
At November 30, 1995, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes was as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
-----------------------------------
<S> <C> <C>
Value Fund............................................. $ 190,267,191 $ 2,844,012
Capital Growth Fund.................................... 200,725,513 14,155,183
Emerging Growth Fund................................... 49,681,273 6,713,817
Balanced Assets Fund................................... 18,435,732 1,479,059
Equity Index Fund...................................... 32,557,012 1,380,954
Disciplined Equity Fund................................ 15,181,857 1,447,140
</TABLE>
5. SHARES OF BENEFICIAL INTEREST.
As of November 30, 1995, an unlimited number of shares without par value were
authorized for the Trust. 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.
6. ORGANIZATION COSTS.
The Funds bear all costs in connection with their organization, including the
fees and expenses of registering and qualifying their shares for distribution
under Federal and state securities regulations. All such costs are being
amortized on the straight-line method over a period of five years from
commencement of operations. In the event that any of the shares issued by the
Funds to their sponsor prior to the commencement of the Funds' public offering
("initial shares") are redeemed during such amortization period by any holder
thereof, the Funds will be reimbursed by the holder for any unamortized
organization costs in the same proportion as the number of initial shares
redeemed bears to the number of initial shares outstanding at the time of
redemption. All such costs for Nations Value Fund and Nations Disciplined Equity
Fund have been fully amortized.
7. LINE OF CREDIT.
The Trust and Nations Fund, Inc. participate in a $25 million line of credit
provided by Mellon Bank, N.A. (the "Bank") under a Line of Credit Agreement (the
"Agreement") dated March 17, 1994. Advances under the Agreement are taken
primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Under the Agreement, each Fund may borrow up to the lesser of $10
million or 5% of its net assets. Interest on borrowings is payable either at the
higher of the Bank's Money Market Rate or the
68
<PAGE> 165
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
London Interbank Offered Rate (LIBOR) plus 0.25% on an annualized basis. The
Funds and the other affiliated entities are charged an aggregate commitment fee
of 0.25% per annum on the amount of the line of credit. Each Fund is liable only
for that portion of any commitment with respect to such Fund and shall not be
liable for the portion of the commitment fee of any other fund. The Agreement
requires, among other things, that each participating Fund maintain a ratio of
net assets (not including funds borrowed pursuant to the Agreement) to aggregate
amount of indebtedness pursuant to the Agreement of no less than 4 to 1.
At November 30, 1995, there were no loans outstanding under this Agreement.
During the year ended November 30, 1995, the following Funds had borrowings
under the Agreement:
<TABLE>
<CAPTION>
MAXIMUM AVERAGE AVERAGE
AMOUNT AMOUNT AVERAGE DEBT INTEREST RATE INTEREST
FUND OUTSTANDING OUTSTANDING SHARES PER SHARE HIGH LOW EXPENSE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Equity Index Fund..................... $ 9,100,000 $ 124,384 11,368,022 $0.01 6.00% 6.00% $7,567
Disciplined Equity Fund............... 400,000 3,014 3,444,903 0.00(a) 6.50% 6.07% 193
</TABLE>
- ---------------
(a) Amount represents less than $0.01 per share.
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the year ended
November 30, 1995.
8. REORGANIZATION.
On April 29, 1994, the Value Fund (Acquiring Fund) acquired the assets and
certain liabilities of The Capitol Mutual Funds Equity Portfolio (Acquired
Fund), in exchange for shares of the Acquiring Fund, pursuant to a plan of
tax-free reorganization approved by the Acquired Fund's shareholders on March
31, 1994. Total shares issued by the Acquired 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 depreciation included in the Acquired Fund's
total net assets at the acquiring date were as follows:
<TABLE>
<CAPTION>
VALUE OF
SHARES SHARES TOTAL NET TOTAL NET ACQUIRED
ISSUED BY ISSUED BY ASSETS OF ASSETS OF FUND
ACQUIRING ACQUIRING ACQUIRED ACQUIRING UNREALIZED
ACQUIRING FUND ACQUIRED FUND FUND FUND FUND* FUND DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
The Capitol Mutual
Nations Value Funds Equity
Fund............... Portfolio.......... 2,158,820 $28,863,030 $28,863,030 $867,890,020 $ 1,410,132
</TABLE>
- ---------------
* The value of the net assets of the Acquiring Fund immediately after the
acquisition was $896,753,050.
9. SUBSEQUENT EVENT.
Effective January 1, 1996, NationsBanc Advisors, Inc. will become the investment
advisor to the Trust. Also effective January 1, 1996, TradeStreet Investment
Associates, Inc. will become the sub-advisor to the Trust. Both NationsBanc
Advisors, Inc. and TradeStreet Investment Associates, Inc. are indirect
wholly-owned subsidiaries of NationsBank. There will be no change in advisory
fees paid by the Trust.
69
<PAGE> 166
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUND TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Nations Value Fund, Nations Capital
Growth Fund, Nations Emerging Growth Fund, Nations Balanced Assets Fund, Nations
Equity Index Fund and Nations Disciplined Equity Fund (formerly Nations Special
Equity Fund) (each a Fund of Nations Fund Trust, hereafter referred to as the
"Trust") at November 30, 1995 and the results of each of their operations, the
changes in each of their net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principals. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
November 30, 1995 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where confirmations from brokers
were not received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
January 19, 1996
70
<PAGE> 167
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 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
<PAGE> 168
This report is submitted for the general information of shareholders of Nations
Fund Trust. This material must be accompanied or preceded by a Nations Fund
prospectus.
<PAGE> 169
[NATIONS FUND LOGO]
PO Box 34602
Charlotte, NC 28234-4602
Toll Free 1-800-982-2271
BULK RATE
U.S. POSTAGE
PAID
BOSTON, MA
PERMIT NO.
54201
<PAGE> 170
ANNUAL
REPORT
For the Year Ended November 30, 1995
NATIONS
FUND
Nations Florida Intermediate
Municipal Bond Fund
Nations Florida Municipal Bond Fund
Nations Georgia Intermediate
Municipal Bond Fund
Nations Georgia Municipal Bond Fund
Nations Maryland Intermediate
Municipal Bond Fund
Nations Maryland Municipal Bond Fund
Nations North Carolina Intermediate
Municipal Bond Fund
Nations North Carolina
Municipal Bond Fund
Nations South Carolina Intermediate
Municipal Bond Fund
Nations South Carolina
Municipal Bond Fund
Nations Tennessee Intermediate
Municipal Bond Fund
Nations Tennessee
Municipal Bond Fund
Nations Texas Intermediate
Municipal Bond Fund
Nations Texas Municipal Bond Fund
Nations Virginia Intermediate
Municipal Bond Fund
Nations Virginia Municipal Bond Fund
Nations Short-Term
Municipal Income Fund
Nations Intermediate
Municipal Bond Fund
Nations Municipal Income Fund
<PAGE> 171
<TABLE>
<S> <C>
NOT MAY LOSE VALUE
FDIC- NO BANK GUARANTEE
INSURED
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, 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: NATIONSBANK, N.A. ("NATIONSBANK")
<PAGE> 172
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
SHAREHOLDER LETTER............................................................................... 1
PERFORMANCE AND COMMENTARY:
Florida Intermediate Municipal Bond Fund.................................................... 6
Florida Municipal Bond Fund................................................................. 6
Georgia Intermediate Municipal Bond Fund.................................................... 14
Georgia Municipal Bond Fund................................................................. 14
Maryland Intermediate Municipal Bond Fund................................................... 22
Maryland Municipal Bond Fund................................................................ 22
North Carolina Intermediate Municipal Bond Fund............................................. 30
North Carolina Municipal Bond Fund.......................................................... 30
South Carolina Intermediate Municipal Bond Fund............................................. 38
South Carolina Municipal Bond Fund.......................................................... 38
Tennessee Intermediate Municipal Bond Fund.................................................. 46
Tennessee Municipal Bond Fund............................................................... 46
Texas Intermediate Municipal Bond Fund...................................................... 54
Texas Municipal Bond Fund................................................................... 54
Virginia Intermediate Municipal Bond Fund................................................... 62
Virginia Municipal Bond Fund................................................................ 62
Short-Term Municipal Income Fund............................................................ 70
Intermediate Municipal Bond Fund............................................................ 74
Municipal Income Fund....................................................................... 79
FINANCIAL STATEMENTS:
SCHEDULE OF INVESTMENTS:
Florida Intermediate Municipal Bond Fund.................................................... 84
Florida Municipal Bond Fund................................................................. 86
Georgia Intermediate Municipal Bond Fund.................................................... 88
Georgia Municipal Bond Fund................................................................. 91
Maryland Intermediate Municipal Bond Fund................................................... 93
Maryland Municipal Bond Fund................................................................ 96
North Carolina Intermediate Municipal Bond Fund............................................. 99
North Carolina Municipal Bond Fund.......................................................... 101
South Carolina Intermediate Municipal Bond Fund............................................. 103
South Carolina Municipal Bond Fund.......................................................... 106
Tennessee Intermediate Municipal Bond Fund.................................................. 108
Tennessee Municipal Bond Fund............................................................... 110
Texas Intermediate Municipal Bond Fund...................................................... 112
Texas Municipal Bond Fund................................................................... 114
Virginia Intermediate Municipal Bond Fund................................................... 116
Virginia Municipal Bond Fund................................................................ 120
Short-Term Municipal Income Fund............................................................ 123
Intermediate Municipal Bond Fund............................................................ 126
Municipal Income Fund....................................................................... 129
STATEMENTS OF ASSETS AND LIABILITIES........................................................... 134
STATEMENTS OF OPERATIONS....................................................................... 142
STATEMENTS OF CHANGES IN NET ASSETS............................................................ 146
SCHEDULE OF CAPITAL STOCK ACTIVITY............................................................. 154
</TABLE>
<PAGE> 173
TABLE OF CONTENTS (CONTINUED)
<TABLE>
<CAPTION>
PAGE
<S> <C>
FINANCIAL HIGHLIGHTS:
Florida Intermediate Municipal Bond Fund.................................................... 162
Florida Municipal Bond Fund................................................................. 162
Georgia Intermediate Municipal Bond Fund.................................................... 164
Georgia Municipal Bond Fund................................................................. 164
Maryland Intermediate Municipal Bond Fund................................................... 166
Maryland Municipal Bond Fund................................................................ 166
North Carolina Intermediate Municipal Bond Fund............................................. 168
North Carolina Municipal Bond Fund.......................................................... 168
South Carolina Intermediate Municipal Bond Fund............................................. 170
South Carolina Municipal Bond Fund.......................................................... 170
Tennessee Intermediate Municipal Bond Fund.................................................. 172
Tennessee Municipal Bond Fund............................................................... 172
Texas Intermediate Municipal Bond Fund...................................................... 174
Texas Municipal Bond Fund................................................................... 174
Virginia Intermediate Municipal Bond Fund................................................... 176
Virginia Municipal Bond Fund................................................................ 176
Short-Term Municipal Income Fund............................................................ 178
Intermediate Municipal Bond Fund............................................................ 178
Municipal Income Fund....................................................................... 180
NOTES TO FINANCIAL STATEMENTS.................................................................... 182
REPORT OF INDEPENDENT ACCOUNTANTS................................................................ 190
</TABLE>
<PAGE> 174
NATIONS FUND TRUST
DEAR SHAREHOLDER:
We are pleased to present the annual report for Nations Fund Trust for the
fiscal year ended November 30, 1995. During this period of bullish growth across
many financial markets, assets of the Nations Fund family of mutual funds
surpassed the $17 billion level.
Overall, 1995 marked a period that many investors will look back upon with great
fondness in the years to come. It offered the potential for investors to enjoy
significant returns in an environment marked by subdued volatility. As we look
forward to the opportunities 1996 presents, it is appropriate to reflect upon
the conclusions that can be drawn from market performance over the past twelve
months.
FINANCIAL MARKETS SUMMARY
The past year produced ideal market conditions for U.S. financial assets.
Historians might well cite 1995 as the definitive case study of a bull market.
Indeed, four factors coincided to make 1995 memorable. The U.S. economy grew at
a moderate pace. Inflation slowed more than most observers anticipated. Both the
executive and legislative branches of the U.S. government embraced a commitment
to reduce the federal deficit and U.S. corporations continued to produce strong
profitability. As a result, those who owned financial assets enjoyed strong
performance without having this performance eroded or undermined by the threats
of an overheated economy, creeping inflation or unbridled federal spending.
How could U.S. corporations produce strong profits without the pricing power of
inflation, the tail wind of economic strength or the catalyst of government
spending? Clearly, productivity and restructuring played an important role as
U.S. companies expanded margins. Moreover, profits earned abroad helped to
expand earnings for many companies. And the technology sector of the economy
played an important role as computers and telecommunications helped reshape many
companies.
On the international front, foreign stock markets lagged behind the U.S. equity
bull market. Foreign bond markets, with the exception of Japan, performed in
line with the U.S. bond market, providing double digit returns for bond
investors. A closer look at stock market facts actually show that foreign market
returns for 1995 were in line with their 1994 returns when foreign markets
outperformed the U.S. market by a sizable margin. The generally low correlation
between the U.S. and foreign stock markets continues to provide opportunities
for the portfolio diversification desired by many prudent investors. It is the
primary reason that diversifying overseas has become an important asset
allocation decision today.
The year also produced a record number of strategic mergers both domestically
and internationally. In numerous industries, companies forged ties in order to
build long-term profitability. Among others, Banking, Broadcasting, Basic
Industry, Software and Health Care experienced strong deal activity. Unlike
prior merger cycles, most of these deals were not merely the result of financial
engineering.
Overall, 1995 was an important reminder regarding the value of long-term
investing. As we entered 1995, investors might have been discouraged by the
meager U.S. returns of the prior year. Moreover, some investors might have been
tempted to take profits early in the year as the U.S. rally unfolded. The
winners in 1995 appear to have been those individuals and institutions with the
patience and vision for the long haul.
1
<PAGE> 175
FINANCIAL OUTLOOK
Investors can reap significant rewards when long-term investment discipline
intersects with ideal market conditions. This was the story for 1995.
But what about 1996? Must a bear market necessarily follow the bull market of
1995? Can interest rates continue to fall (and bond prices rise) and stocks
continue to rally at a torrid pace? We do not think that a strong bull market
necessarily must be followed by a big market sell-off. As long as the financial
environment remains favorable, prices can continue to appreciate. However, we do
not anticipate the pace of appreciation to be nearly as rapid or steady.
What about investing overseas? Should we expect a reversal of last year with
foreign stock markets outperforming U.S. stock markets in 1996? Over the long
term, there is a close correlation between real economic growth rates achieved
by a country and the performance of that country's stock market. Many of the
world's fastest growing economies are located in the Pacific Rim and it is here
where we see some of the most exciting opportunities for 1996 and beyond. We
also see opportunities in Japan, the world's largest economy and stock market
outside the United States, as it recovers from its recent problems.
Fundamentally, the fast growing Pacific Rim markets should outperform other
world markets, while the more developed countries will be reacting to the same
investment environment that exists in the United States.
While moderate economic conditions, low inflation and fiscal restraint are
likely to persist in 1996, corporate profitability is likely to slow. As a
result, we should not expect to see a market rally that is as broad as 1995, and
we should expect to see periodic corrections in both stocks and bonds. However,
even without strong earnings as an ally, the general market environment should
be positive enough to provide the potential for reasonable returns for investors
in the new year. Of course, it is not possible to predict market activity with
any certainty.
Thank you for placing your confidence in Nations Fund. We hope the information
contained in this report proves valuable as you pursue your investment goals.
Sincerely,
[SIGNATURE LOGO]
A. Max Walker
President and Chairman
of the Board
November 30, 1995
2
<PAGE> 176
We are pleased to present the following general investment strategies that
investors may want to consider. Specific investment decisions should always be
based on an analysis of your individual financial goals, tolerance for risk, and
investment timeframe.
PREPARE FOR 1996 WITH A
QUICK FINANCIAL REVIEW
- --------------------------------------------------------------------------------
Nineteen hundred ninety-five was an exciting year for investors. The Dow Jones
Industrial Average (DJIA) surged past the 5000 mark, breaking record after
record along the way. The National Association of Securities Dealers Automated
Quotations system (NASDAQ), Standard & Poor's Corporation 500 Composite Stock
Price Index (S&P 500) and New York Stock Exchange (NYSE) indices also reached
record levels. During this same period, falling interest rates resulted in a
bond rally, driving bond prices up and bond yields down.
DO CHANGES IN MARKET CONDITIONS WARRANT CHANGES IN YOUR
INVESTMENT STRATEGY?
Not necessarily. Short-term market performance should mean very little if your
investment goals are long-term in nature. For example, before leaping to take
profits when the stock market reaches new highs, as a long-term investor, you
should always consider why you invested in stocks in the first place.
If you're seeking long-term gains, a dramatic shift in your strategy today may
lead to difficult decisions later regarding when to get back into the stock
market -- something that is very difficult to time. That's why most financial
advisers encourage a proactive, rather than reactive, approach to investing. A
proactive approach involves careful planning, goal setting and a long-term
outlook.
As you begin to put your financial affairs in order for the new year, consider
the following:
HAVE YOUR INVESTMENT OBJECTIVES CHANGED?
A new job, retirement, the birth of a child or loss of a loved one are among the
many lifestyle changes that can have a significant impact on your finances.
Perhaps you need to establish a college fund for a child or grandchild. Or, as
you're approaching retirement, you're seeking a more conservative investment
strategy geared toward asset preservation. These are valid reasons to reassess
your investment goals and objectives as well as how your assets are allocated
among the various investment classes.
ARE YOUR INVESTMENT ASSETS PROPERLY ALLOCATED?
Maintaining a portfolio that is adequately diversified among the primary asset
classes is an important investment principle. In fact, according to an
independent study of 82 pension funds over a 10-year period, over 91% of an
investment portfolio's return is driven by asset allocation.*
CAN YOU REDUCE YOUR TAXABLE INCOME?
An inheritance, a significant salary increase or relocating to another state can
impact your tax situation. If you need to reduce the amount of your income that
is subject to taxes, consider tax-exempt investments. Investing in municipal
bond funds may be one effective choice because the income you earn on municipal
bond funds is generally exempt from federal income taxes.** Also state-specific
municipal bond funds seek income that is exempt from both federal, state and
local income taxes.
- ---------------
* Source: Financial Analysts Journal, May/June 1991: Determinants Of Portfolio
Performance II: An Update, by Gary Brinson, Brian Singer and Gilbert Beebower.
** Income derived from municipal bond funds may be subject to state and local
taxes and, for certain investors, may be subject to the federal Alternative
Minimum Tax (AMT).
3
<PAGE> 177
ARE YOUR RETIREMENT PLANS ON TRACK?
Many financial experts agree that you will need 80% of your pre-retirement
income to maintain a comfortable lifestyle during your retirement years.
However, the Social Security Administration reports that many Americans save
only one-third of what they will need. While Social Security benefits are an
important component of retirement assets, most of us realize that these benefits
are not likely to be enough. Even combined with your company pension plan, you
may still fall short. Greater emphasis will continue to be placed on personal
investments to complete the retirement picture.
Proper asset allocation, one of the strongest drivers of portfolio return, is
particularly important where retirement investments are concerned. It's
important to determine if your retirement assets are properly allocated to
provide the growth you need without taking on undue risk.
WHAT'S RIGHT FOR YOU?
Before making any changes in your investment strategy, take time to understand
the relationship between investment risk and investment reward. Generally, the
greater the potential for investment reward, such as growth from stock
investments, the greater the risk. Consider whether your timeframe is adequate
to compensate for potential market downturns.
In determining the level of investment risk you are comfortable with, consider
the following:
- - STOCKS ARE LONG-TERM INVESTMENT VEHICLES. Since stocks offer the strongest
potential for growth among the asset classes, stock market investments are
generally suitable for pursuing long-term investment goals. Investors pursuing
short-term investment goals may wish to consider shifting assets toward
investments with greater price stability.
- - BOND INVESTMENTS OFFER GREATER STABILITY THAN STOCKS, BUT ARE NOT WITHOUT
RISK. The types of risk a bond investor will incur include credit risk and
interest-rate risk, both of which can affect a bond's price and yield. In
addition, while bonds generally are not as volatile as stocks, they also do
not offer the growth potential found in stock market investments. A portfolio
that contains only bond investments may hurt your potential to outpace
inflation over time.
- - INTERNATIONAL STOCKS AND BONDS OFFER GREATER DIVERSIFICATION. Although
international investing presents additional risks such as political, currency
and liquidity risk, the diversification benefits can increase the potential
for higher overall portfolio returns and lower portfolio risk.
- - AVOID PLACING ALL OF YOUR EGGS IN ONE BASKET. Spread your investment dollars
among stock, bond and money market investments to help reduce the risk and
impact of principal loss should a particular investment perform poorly.
4
<PAGE> 178
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 your financial
objectives or market conditions 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 NationsBank, N.A. The family was
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 1-(800)
982-2271.
- ---------------
* The Nations Fund family also includes Nations Equity Index Fund, which seeks
to match the performance of the S&P 500 before fees and expenses.
5
<PAGE> 179
NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
NATIONS FLORIDA MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by Michele Poirier. Ms. Poirier joined NationsBank in
1990 and is a Vice President and Fixed Income Manager with 21 years of
experience in the municipal bond industry. She earned a B.B.A. at Georgia State
University in Atlanta.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from Federal income and the Florida state intangibles tax,
consistent with the relative stability of principal.
PERFORMANCE REVIEW*
NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Florida
Intermediate Municipal Bond Fund Trust A Shares returned 15.92%.
NATIONS FLORIDA MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Florida Municipal
Bond Fund Trust A Shares returned 22.69%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Ms. Poirier shares her views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
6
<PAGE> 180
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in Florida increased 13.4% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
7
<PAGE> 181
NATIONS FUND TRUST
Nations Florida Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 52.1%
General Obligation.................... 9.3%
Hospital.............................. 9.8%
Education............................. 3.3%
Housing Revenue....................... 8.2%
Transportation........................ 3.7%
Power/Utilities Revenue............... 5.3%
Other................................. 8.3%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Orlando and Orange Counties, Florida, Expressway
Authority Revenue Refunding, 6.500% 07/01/10 6.7%
2. Orange County, Florida, Health Facilities
Authority Revenue, (Orlando Regional Medical
Center Hospital), (MBIA Insured), 4.400% 10/01/02 5.8
3. Hillsborough County, Florida, Environmentally
Sensitive Lands, 6.250% 07/01/06 5.6
4. Florida State Housing Finance Agency, Refunding,
Multi-family Housing, (Altamonte Project), Series
C, 7.000% 12/01/03 4.1
5. Dade County, Florida, School District Revenue
Refunding, (AMBAC Insured), 5.000% 07/15/01 3.3
6. Florida State Board of Education, GO, Capital
Outlay, Public Education, Series A, Unrefunded
Balance, 7.250% 06/01/23 3.3
7. Florida State Division Bond, Financial Department
of General Service Revenue, Preservation
Authority, (MBIA Insured), 5.800% 07/01/01 3.1
8. Dunes, Florida, Community Development District
Revenue, (Intercoastal Water Way Bridge), 5.300%
10/01/03 3.1
9. Jacksonville, Florida, Electric Authority Revenue
Refunding, 4th Series, St. John's River
Authority, Series 6C, 6.200% 10/01/97 3.0
10. Indian River County, Florida, School District,
(FSA Insured), 5.000% 04/01/03 3.0
</TABLE>
- ---------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- ---------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.92% 15.68%
11/30/95
------------------------------
INCEPTION
(12/14/92) 5.46% 6.64%
THROUGH
11/30/95
------------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Florida
Intermediate Municipal Bond
Fund on December 14, 1992
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/14/94 $ 9,675 $10,000
02/93 $10,202 $10,542
05/93 $10,175 $10,499
08/93 $10,522 $10,883
11/93 $10,588 $10,934
02/94 $10,620 $11,008
05/94 $10,475 $10,846
08/94 $10,589 $11,037
11/94 $10,119 $10,664
02/95 $10,854 $11,277
05/95 $11,236 $11,729
08/95 $11,393 $12,007
11/95 $11,706 $12,292
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
8
<PAGE> 182
NATIONS FUND TRUST
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 14.34%* 15.34%
11/30/95
--------------------------
INCEPTION
(12/17/92) 6.20% 6.20%
THROUGH
11/30/95
--------------------------
Not
*Adjusted for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Florida
Intermediate Municipal Bond
Fund on December 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/17/92 $10,000 $10,000
02/93 $10,540 $10,457
05/93 $10,487 $10,414
08/93 $10,828 $10,795
11/93 $10,880 $10,845
02/94 $10,896 $10,919
05/94 $10,737 $10,759
08/94 $10,846 $10,948
11/94 $10,356 $10,577
02/95 $11,100 $11,185
05/95 $11,482 $11,634
08/95 $11,635 $11,910
11/95 $11,946 $12,192
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.34% 15.34%
11/30/95
-------------------------
INCEPTION
(06/07/93) 4.21% 5.33%
THROUGH
11/30/95
-------------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Florida
Intermediate Municipal Bond
Fund on June 7, 1993
(inception). The Lehman 7-
Year Municipal Bond Index is
a performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,297 $10,365
11/93 $10,353 $10,413
02/94 $10,375 $10,485
05/94 $10,226 $10,330
08/94 $10,329 $10,512
11/94 $ 9,863 $10,156
05/95 $10,935 $11,171
08/95 $11,080 $11,436
11/95 $11,076 $11,707
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
9
<PAGE> 183
NATIONS FUND TRUST
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.92%
11/30/95
------------------
INCEPTION
(12/11/92) 6.78%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Florida
Intermediate Municipal Bond
Fund on December 11, 1992
(inception). The Lehman 7-
Year Municipal Bond Index is
a performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/11/92 $10,000 $10,000
02/93 $10,548 $10,542
05/93 $10,515 $10,499
08/93 $10,877 $10,883
11/94 $10,484 $10,664
02/95 $11,250 $11,277
05/95 $11,652 $11,729
08/95 $11,821 $12,007
11/95 $12,152 $12,292
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
10
<PAGE> 184
NATIONS FUND TRUST
Nations Florida Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 30.9%
Hospital.............................. 18.7%
Pollution Control Revenue/
Industrial Development Revenue...... 12.1%
General Obligation.................... 9.7%
Housing Revenue....................... 9.5%
Power/Utilities Revenue............... 6.3%
Education............................. 5.7%
Other................................. 7.1%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Palm Beach County, Florida, Health Facilities
Authority Revenue, (Good Samaritans Health
System), 6.200% 10/01/06 4.0%
2. Dade County, Florida, Water and Sewer System
Revenue Refunding, (FGIC Insured), 5.000%
10/01/13 3.8
3. Dade County, Florida, Health Facilities
Authority, Hospital Revenue Refunding, (Baptist
Hospital, Miami Project), Series A, (MBIA
Insured), 5.250% 05/15/21 3.7
4. Citrus County, Florida, PCR Refunding, Crystal
River, (Florida Power Corporation), Series B,
6.350% 02/01/22 3.4
5. Jacksonville, Florida, Electric Authority Revenue
Refunding, St. John's River Authority, Issue 2,
Series 9, 5.250% 10/01/21 3.2
6. Hillsborough County, Florida, Industrial
Development Authority, PCR, (Tampa Electric
Company Project), 8.000% 05/01/22 3.1
7. Martin County, Florida, Industrial Development
Authority Revenue, (Indiantown Cogeneration
Project), Series A, AMT, 7.875% 12/15/25 3.0
8. Florida State Municipal Power Agency Revenue,
(Stanton II Project), Pre-refunded, (AMBAC
Insured), 6.500% 10/01/20 3.0
9. Florida State Board of Education, GO, Capital
Outlay, Public Education, Unrefunded Balance,
Series A, 7.250% 06/01/23 2.9
10. North Broward, Florida, Hospital Revenue, (MBIA
Insured), 6.250% 01/01/06 2.8
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 17.25% 22.45%
11/30/95
-----------------------------------
INCEPTION
(12/10/93) 1.98% 4.25%
THROUGH
11/30/95
-----------------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Florida
Municipal Bond Fund on
December 10, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/10/93 $ 9,575 $10,000
02/94 $ 9,346 $10,062
05/94 $ 8,973 $ 9,723
08/94 $ 9,105 $ 9,874
11/94 $ 8,488 $ 9,200
05/95 $ 9,875 $10,723
08/95 $ 9,909 $10,759
11/95 $10,394 $11,320
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
11
<PAGE> 185
NATIONS FUND TRUST
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 20.80%* 21.80%
11/30/95
--------------------------
INCEPTION
(11/03/94) 19.65% 19.65%
THROUGH
11/30/95
--------------------------
Not
*Adjusted for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Florida
Municipal Bond Fund on
November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,957 $ 9,766
02/95 $11,045 $10,846
05/95 $11,554 $11,382
08/95 $11,578 $11,420
11/95 $12,027 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.78% 21.78%
11/30/95
--------------------------
INCEPTION
(10/22/93) 2.27% 3.61%
THROUGH
11/30/95
--------------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Florida
Municipal Bond Fund on
October 22, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/22/93 $10,000 $10,000
11/93 $ 9,765 $ 9,890
02/94 $ 9,783 $ 9,951
05/94 $ 9,381 $ 9,616
08/94 $ 9,506 $ 9,765
11/94 $ 8,850 $ 9,099
02/95 $ 9,816 $10,106
05/95 $10,267 $10,605
08/95 $10,289 $10,641
11/95 $10,485 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
12
<PAGE> 186
NATIONS FUND TRUST
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 22.69%
11/30/95
-------------------
INCEPTION
(12/13/93) 4.77%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Florida Municipal
Bond Fund on December 13,
1993 (inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/13/93 $10,000 $10,000
02/94 $ 9,817 $10,062
05/94 $ 9,431 $ 9,723
08/94 $ 9,575 $ 9,874
11/94 $ 8,930 $ 9,200
02/95 $ 9,924 $10,218
05/95 $10,400 $10,723
08/95 $10,441 $10,759
11/95 $10,957 $11,320
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
13
<PAGE> 187
NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND
NATIONS GEORGIA MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by Michele Poirier. Ms. Poirier joined NationsBank in
1990 and is a Vice President and Fixed Income Manager with 21 years of
experience in the municipal bond industry. She earned a B.B.A. at Georgia State
University in Atlanta.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from Federal and Georgia state income taxes and state intangibles
taxes, consistent with relative stability of principal.
PERFORMANCE REVIEW*
NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Georgia
Intermediate Municipal Bond Fund Trust A Shares returned 15.42%.
NATIONS GEORGIA MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Georgia Municipal
Bond Fund Trust A Shares returned 22.48%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Ms. Poirier shares her views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
14
<PAGE> 188
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in Georgia decreased 39.8% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
15
<PAGE> 189
NATIONS FUND TRUST
Nations Georgia Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 21.7%
General Obligation.................... 38.5%
Hospital.............................. 8.3%
Housing Revenue....................... 3.5%
Water Revenue......................... 8.4%
Pre-Refunded.......................... 3.7%
Power/Utilities Revenue............... 8.2%
Other................................. 7.7%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Georgia State, GO, Series C, 6.500% 07/01/05 4.3%
2. Georgia State Tollway Authority Revenue, (Georgia
400 Project), 6.375% 07/01/02 3.7
3. Georgia State, GO, Series A, 6.250%, 03/01/06 2.8
4. Georgia State Municipal Gas Authority, Gas Tax
Revenue, (Southern Storage Gas Project), 6.000%
07/01/04 2.7
5. Private Colleges and Universities Facilities
Authority Revenue, Georgia, (Emory University
Project), Series C, 5.750% 10/01/02 2.5
6. DeKalb County, Georgia, School District, GO,
5.000% 07/01/03 2.4
7. Fulton County, Georgia, Water and Sewer Authority
Revenue Refunding, (FGIC Insured), 5.100% 01/01/98 2.2
8. Savannah, Georgia, Hospital Authority Revenue
Refunding and Improvement, (Candler Hospital
Project), 7.000% 01/01/11 2.2
9. Georgia State Housing and Finance Authority
Revenue, (Homeownership Opportunity Program),
(FHA/VA/Private Mortgages Insured), Series B,
6.600% 06/01/25 2.1
10. Paulding County, Georgia, School District, GO,
Series A, 6.400% 02/01/04 2.0
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.45% 15.20%
11/30/95
----------------------------
INCEPTION
(05/04/92) 6.25% 7.23%
THROUGH
11/30/95
----------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Georgia
Intermediate Municipal Bond
Fund on May 4, 1992
(inception). The Lehman 7-
Year Municipal Bond Index is
a performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
05/04/92 $ 9,675 $10,000
08/92 $10,146 $10,461
11/92 $10,267 $10,631
02/93 $10,923 $11,208
05/93 $10,865 $11,162
08/93 $11,242 $11,570
11/93 $11,331 $11,624
02/94 $11,335 $11,703
05/94 $11,123 $11,531
08/94 $11,272 $11,733
11/94 $10,779 $11,336
02/95 $11,459 $11,988
05/95 $11,906 $12,469
08/95 $12,098 $12,765
11/95 $12,417 $13,068
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
16
<PAGE> 190
NATIONS FUND TRUST
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 13.85%* 14.85%
11/30/95
--------------------------
INCEPTION
(06/17/92) 6.39% 6.39%
THROUGH
11/30/95
--------------------------
Not
*Adjusted for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Georgia
Intermediate Municipal Bond
Fund on June 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/17/92 $10,000 $10,000
08/92 $10,266 $10,192
11/92 $10,382 $10,358
02/93 $11,009 $10,919
05/93 $10,945 $10,875
08/93 $11,308 $11,272
11/93 $11,380 $10,325
02/94 $11,367 $11,402
05/94 $11,144 $10,234
08/94 $11,284 $11,432
11/94 $10,782 $11,045
02/95 $11,455 $11,680
05/95 $11,893 $12,146
08/95 $12,075 $12,437
11/95 $12,384 $12,732
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 10.85% 14.85%
11/30/95
--------------------------
INCEPTION
(06/07/93) 3.96% 5.09%
THROUGH
11/30/95
--------------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Georgia
Intermediate Municipal Bond
Fund on June 7, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,314 $10,365
11/93 $10,386 $10,413
02/94 $10,380 $10,489
05/94 $10,178 $10,330
08/94 $10,307 $10,512
11/94 $ 9,848 $10,156
02/95 $10,462 $10,740
05/95 $10,862 $11,171
08/95 $11,029 $11,436
11/95 $11,011 $11,707
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and reinvestment of all distributions.
- -------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
17
<PAGE> 191
NATIONS FUND TRUST
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.42%
11/30/95
---------------------
INCEPTION
(03/01/92) 7.27%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Georgia
Intermediate Municipal Bond
Fund on March 1, 1992
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
03/01/92 $10,000 $10,000
05/92 $10,215 $10,157
08/92 $10,567 $10,517
11/92 $10,707 $10,688
02/93 $11,385 $11,268
05/93 $11,329 $11,223
08/93 $11,727 $11,633
11/93 $11,823 $11,687
02/94 $11,832 $11,767
05/94 $11,617 $11,594
08/94 $11,778 $11,798
11/94 $11,268 $11,399
02/95 $11,985 $12,055
05/95 $12,459 $12,538
08/95 $12,666 $12,835
11/95 $13,006 $13,139
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
18
<PAGE> 192
NATIONS FUND TRUST
Nations Georgia Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
General Obligation.................... 19.2%
Water Revenue......................... 17.6%
Hospital.............................. 16.0%
Insured............................... 13.6%
Pollution Control Revenue/
Industrial Development Revenue....... 12.7%
Power/Utilities Revenue............... 10.3%
Housing Revenue....................... 10.0%
Cash and Cash-Equivalents............. 0.6%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Municipal Electric Authority of Georgia, Special
Obligation Bonds, First Crossover, General
Resolution, 6.500% 01/01/12 7.0%
2. Savannah, Georgia, Hospital Authority Revenue
Refunding and Improvement, (St. Joseph's Hospital
Project), 6.200% 07/01/23 6.4
3. Georgia State, GO, Series C, 6.500% 07/01/05 5.4
4. Coweta County, Georgia, Development Authority,
Industrial Development Revenue, (Sivaco National
Wire Project), AMT, 5.400% 02/01/09 5.4
5. White County, Georgia, Industrial Development
Authority Revenue Refunding, (Clark-Schwebel Fiber
and Glass Company Project), 6.850% 06/01/10 3.8
6. Peach County, Georgia, School District, GO, (MBIA
Insured), 6.500% 02/01/08 3.6
7. Columbia County, Georgia, School District, Series
B, (MBIA Insured), 6.250% 04/01/13 3.4
8. Union City, Georgia, Housing Authority,
Multi-family Housing Revenue Refunding, (Hidden
Lake Apartments), Series A, (FHA/FNMA Insured),
7.125% 12/01/25 3.4
9. Fayette County, Georgia, School District, GO,
6.125% 03/01/15 3.4
10. Georgia State, GO, Series E, 5.500% 07/01/07 3.4
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 17.06% 22.25%
11/30/95
-------------------------
INCEPTION
(12/30/93) 1.73% 4.06%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Georgia
Municipal Bond Fund on
December 30, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/30/93 $ 9,575 $10,000
02/94 $ 9,402 $ 9,825
05/94 $ 9,014 $ 9,494
08/94 $ 9,159 $ 9,641
11/94 $ 8,454 $ 8,984
02/95 $ 9,382 $ 9,978
05/95 $ 9,819 $10,471
08/95 $ 9,884 $10,506
11/95 $10,335 $11,054
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the reinvestment
of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
19
<PAGE> 193
NATIONS FUND TRUST
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 20.59%* 21.59%
11/30/95
-----------------------------
INCEPTION
(11/03/94) 19.46% 19.46%
THROUGH
11/30/95
-----------------------------
*Adjusted for Not adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Georgia
Municipal Bond Fund on
November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,956 $ 9,766
02/95 $11,034 $10,846
05/95 $11,532 $11,382
08/95 $11,593 $11,420
11/95 $12,006 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.58% 21.58%
11/30/95
-----------------------------
INCEPTION
(10/21/93) 2.13% 3.47%
THROUGH
11/30/95
-----------------------------
Adjusted for Not adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Georgia
Municipal Bond Fund on
October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
11/93 $ 9,851 $ 9,890
02/94 $ 9,872 $ 9,951
05/94 $ 9,450 $ 9,616
08/94 $ 9,589 $ 9,765
11/94 $ 8,838 $ 9,099
02/95 $ 9,794 $10,106
05/95 $10,236 $10,605
08/95 $10,291 $10,641
11/95 $10,454 $11,196
</TABLE>
- ----------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
20
<PAGE> 194
NATIONS FUND TRUST
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
YEAR ENDED 22.48%
11/30/95
----------------
INCEPTION
(01/13/94) 4.02%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Georgia Municipal
Bond Fund on January 13,
1994 (inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
01/13/94 $10,000 $10,000
02/94 $ 9,765 $ 9,825
05/94 $ 9,366 $ 9,494
08/94 $ 9,522 $ 9,641
11/94 $ 8,793 $ 8,984
02/95 $ 9,672 $ 9,976
05/95 $10,221 $10,471
08/95 $10,295 $10,506
11/95 $10,770 $11,054
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
21
<PAGE> 195
NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
NATIONS MARYLAND MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by John Kohl. Mr. Kohl joined NationsBank in 1994 and
is a Senior Vice President and Fixed Income Portfolio Manager with 17 years of
experience in the municipal bond industry. He holds a joint B.A. in Economics
and North American Studies from McGill University in Montreal.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from both Federal and Maryland state income taxes, consistent with
relative stability of principal.
PERFORMANCE REVIEW*
NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Maryland
Intermediate Municipal Bond Fund Trust A Shares returned 15.16%.
NATIONS MARYLAND MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Maryland Municipal
Bond Fund Trust A Shares returned 21.23%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Kohl shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS? From a broad-based
perspective, it was duration, which is a measure of the sensitivity of a bond's
price to changes in interest rates. The intermediate- and long-term portfolios
were longer in duration than their respective peer groups going into the year,
which provided the Funds with an advantage. On the expectation of lower interest
rates, going into the year the intermediate- and long-term portfolios were
positioned with longer durations than their targets and respective peer groups.
This provided the Funds with a performance advantage when the bond market began
to rally and interest rates fell. However, during the second half of the year,
the Funds' peer groups extended their maturities and the Funds were no longer
markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
22
<PAGE> 196
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in Maryland decreased 42.5% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
23
<PAGE> 197
NATIONS FUND TRUST
Nations Maryland Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 34.1%
Other................................. 6.4%
Pre-Refunded.......................... 11.2%
Transportation........................ 7.4%
Education............................. 4.4%
Hospital.............................. 4.8%
General Obligation.................... 31.7%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Maryland State, Transportation Authority, Special
Obligation Revenue, (Baltimore-Washington
International Airport Project), Series A, AMT,
(FGIC Insured), 6.400% 07/01/19 4.0%
2. Charles County, Maryland, Consolidated Public
Improvement, Revenue Refunding, GO, 4.400%
06/01/03 3.7
3. Maryland State, Transportation Authority Revenue,
GO, 4.375% 12/15/03 3.5
4. Washington, D.C. Metropolitan Area Transportation
Authority Revenue Refunding, (FGIC Insured),
4.400% 01/01/00 3.3
5. Northeast Maryland, Solid Waste Disposal
Authority Revenue Refunding, (Southwest Resource
Recovery Facility Project), (MBIA Insured),
6.900% 01/01/00 2.4
6. Frederick County, Maryland, Consolidated Public
Improvement, Revenue Refunding, GO, (FGIC
Insured), 5.750% 12/01/01 2.4
7. Maryland State, Transportation Authority, Special
Obligation Revenue, 6.000% 07/01/97 2.3
8. Prince Georges County, Maryland, Solid Waste
Management Systems Authority Revenue Refunding,
(FSA Insured), 5.100% 06/15/05 2.2
9. Cecil County, Maryland, Revenue Refunding,
Consolidated Public Improvement, GO, (FGIC
Insured), 4.800% 12/01/04 2.2
10. Calvert County, Maryland, Consolidated Public
Improvement, Revenue Refunding, GO, 4.625%
07/15/05 2.2
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.20% 14.94%
11/30/95
------------------------
FIVE YEARS
ENDED 6.26% 6.97%
11/30/95
------------------------
INCEPTION
(09/01/90) 6.70% 7.37%
THROUGH
11/30/95
------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Maryland
Intermediate Municipal Bond
Fund on September 1, 1990
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
09/01/90 $ 9,675 $10,000
11/90 $10,035 $10,370
02/91 $10,297 $10,670
05/91 $10,490 $10,851
08/91 $10,671 $11,089
11/91 $10,884 $11,369
02/92 $11,148 $11,643
05/92 $11,309 $11,827
08/92 $11,653 $12,245
11/92 $11,789 $12,445
02/93 $12,435 $13,119
05/93 $12,353 $13,066
08/93 $12,760 $13,543
11/93 $12,845 $13,606
02/94 $12,871 $13,699
05/94 $12,651 $13,498
08/94 $12,785 $13,735
11/94 $12,227 $13,270
02/95 $13,016 $14,033
05/95 $13,506 $14,596
08/95 $13,760 $14,942
11/95 $14,053 $15,297
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
24
<PAGE> 198
NATIONS FUND TRUST
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 13.59%* 14.59%
11/30/95
-----------------------------
INCEPTION
(06/17/92) 5.76% 5.76%
THROUGH
11/30/95
-----------------------------
Not
*Adjusted for adjusted
maximum for
contingent contingent
deferred deferred
sales charge sales
of 1.00% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Maryland
Intermediate Municipal Bond
Fund on June 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/17/92 $10,000 $10,000
08/92 $10,209 $10,192
11/92 $10,313 $10,358
02/93 $10,861 $10,919
05/93 $10,773 $10,875
08/93 $11,112 $11,272
11/93 $11,169 $11,325
02/94 $11,175 $11,402
05/94 $10,973 $11,234
08/94 $11,081 $11,432
11/94 $10,589 $11,045
02/95 $11,264 $11,680
05/95 $11,679 $12,148
08/95 $11,889 $12,437
11/95 $12,133 $12,732
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 10.59% 14.59%
11/30/95
--------------------------
INCEPTION
(06/08/93) 3.75% 4.89%
THROUGH
11/30/95
--------------------------
Not
Adjusted for adjusted
maximum for
applicable contingent
contingent deferred
deferred sales
sales charge charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Maryland
Intermediate Municipal Bond
Fund on June 8, 1993
(inception). The Lehman 7-
Year Municipal Bond Index is
a performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/08/93 $10,000 $10,000
08/93 $10,294 $10,365
11/93 $10,353 $10,413
02/94 $10,365 $10,489
05/94 $10,180 $10,330
08/94 $10,279 $10,512
11/94 $ 9,823 $10,156
02/95 $10,449 $10,740
05/95 $10,834 $11,171
08/95 $11,030 $11,436
11/95 $10,956 $11,707
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
25
<PAGE> 199
NATIONS FUND TRUST
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- ----------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.16%
11/30/95
------------------
FIVE YEARS
ENDED 7.10%
11/30/95
------------------
INCEPTION
(09/01/90) 7.50%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Maryland
Intermediate Municipal Bond
Fund on September 1, 1990
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
09/01/90 $10,000 $10,000
11/90 $10,372 $10,370
02/91 $10,642 $10,670
05/91 $10,842 $10,851
08/91 $11,029 $11,089
11/91 $11,250 $11,369
02/92 $11,522 $11,643
05/92 $11,690 $11,827
08/92 $12,050 $12,245
11/92 $12,195 $12,445
02/93 $12,868 $13,119
05/93 $12,788 $13,066
08/93 $13,215 $13,543
11/93 $13,307 $13,606
02/94 $13,339 $13,699
05/94 $13,117 $13,498
08/94 $13,262 $13,735
11/94 $12,689 $13,270
02/95 $13,515 $14,033
05/95 $14,031 $14,596
08/95 $14,302 $14,942
11/95 $14,613 $15,297
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
26
<PAGE> 200
NATIONS FUND TRUST
Nations Maryland Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 24.6%
Power/Utility Revenue................. 3.0%
Pollution Control Revenue/
Industrial Development Revenue...... 3.9%
Transportation........................ 4.3%
Water Revenue......................... 3.5%
Housing............................... 9.0%
Hospital.............................. 12.8%
Other................................. 11.4%
Pre-Refunded.......................... 11.1%
Cash and Cash-Equivalents............. 7.5%
General Obligation.................... 8.9%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Commonwealth of Puerto Rico Highway and
Transportation Authority, Highway Revenue,
Series T, 6.500% 07/01/22 5.8%
2. Maryland State, Transportation Authority Revenue,
(Transportation Facilities Project), 6.800%
07/01/16 4.2
3. Prince Georges County, Maryland, Pollution
Control Revenue Refunding, (Potomac Electric
Power Project), 5.750% 03/15/10 3.8
4. Prince Georges County, Maryland, Solid Waste
Management Systems, Authority Revenue Refunding,
(FSA Insured), 5.200% 06/15/06 3.7
5. Anne Arundel County, Maryland, Consolidated
Public Improvement Revenue, GO, 5.300% 04/01/10 3.7
6. Anne Arundel County, Maryland, Consolidated
Public Improvement Revenue, GO, 5.250% 07/15/11 3.7
7. Maryland State, Stadium Authority, Lease Revenue,
(Ocean City Convention Center), 5.375% 12/15/13 3.7
8. Howard County, Maryland, Special Facilities
Revenue, Series A, 6.000% 02/15/21 3.0
9. Washington, D.C., Metropolitan Area
Transportation Authority Revenue Refunding, (FGIC
Insured), 6.000% 07/01/10 2.6
10. Washington County, Maryland, Sanitation District
Refunding, GO, Series F, (FGIC Insured), 5.000%
01/01/04 2.4
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 15.85% 20.99%
11/30/95
----------------------
INCEPTION
(11/04/93) 2.28% 4.45%
THROUGH
11/30/95
----------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Maryland
Municipal Bond Fund on
November 4, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/04/93 $ 9,575 $10,000
11/93 $ 9,579 $ 9,890
02/94 $ 9,653 $ 9,951
05/94 $ 9,163 $ 9,616
08/94 $ 9,297 $ 9,765
11/94 $ 8,661 $ 9,099
02/95 $ 9,566 $10,106
05/95 $ 9,976 $10,605
08/95 $10,046 $10,641
11/95 $10,479 $11,196
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
30
<PAGE> 201
NATIONS FUND TRUST
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 19.29%* 20.29%
11/30/95
--------------------------
INCEPTION
(11/03/94) 18.25% 18.25%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Maryland
Municipal Bond Fund on
November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,955 $ 9,766
02/95 $10,980 $10,846
05/95 $11,436 $11,382
08/95 $11,498 $11,420
11/95 $11,875 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 15.33% 20.33%
11/30/95
--------------------------
INCEPTION
(10/21/93) 1.50% 2.83%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Maryland
Municipal Bond Fund on
October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
11/93 $ 9,806 $ 9,890
02/94 $ 9,866 $ 9,951
05/94 $ 9,352 $ 9,616
08/94 $ 9,475 $ 9,765
11/94 $ 8,815 $ 9,099
02/95 $ 9,723 $10,106
05/95 $10,125 $10,605
08/95 $10,182 $10,641
11/95 $10,319 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
28
<PAGE> 202
NATIONS FUND TRUST
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 21.23%
11/30/95
--------------------
INCEPTION
(09/20/94) 12.66%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Maryland
Municipal Bond Fund on
September 20, 1994
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
09/20/94 $10,000 $10,000
11/94 $ 9,511 $ 9,508
02/95 $10,509 $10,560
05/95 $10,965 $11,082
08/95 $11,047 $11,119
11/95 $11,530 $11,699
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
29
<PAGE> 203
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by Michele Poirier. Ms. Poirier joined NationsBank in
1990 and is a Vice President and Fixed Income Manager with 21 years of
experience in the municipal bond industry. She earned a B.B.A. at Georgia State
University in Atlanta.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from Federal and North Carolina state income taxes and state
intangibles taxes, consistent with the relative stability of principal.
PERFORMANCE REVIEW*
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations North Carolina
Intermediate Municipal Bond Fund Trust A Shares returned 15.41%.
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations North Carolina
Municipal Bond Fund Trust A Shares returned 22.87%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Ms. Poirier shares her views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
30
<PAGE> 204
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in North Carolina decreased 21% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
31
<PAGE> 205
NATIONS FUND TRUST
Nations North Carolina Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
General Obligation.................... 31.6%
Education............................. 5.4%
Other................................. 8.7%
Insured............................... 19.7%
Water Revenue......................... 5.5%
Pollution Control Revenue/
Industrial Development Revenue...... 11.1%
Hospital.............................. 7.7%
Pre-Refunded.......................... 10.3%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. North Carolina Eastern Municipal Power Agency,
Series A 7.750% 01/01/12 5.8%
2. North Carolina State, GO, Series A, 6.100%
03/01/01 5.6
3. Greenville, North Carolina, Combined Enterprises
Revenue, 6.000% 09/01/10 5.4
4. Government of Guam, Series A, 4.900% 09/01/97 3.9
5. Greensboro, North Carolina, Enterprise System
Revenue, Series A, 6.500% 06/01/04 3.5
6. Government of Guam, Series A, 5.150% 11/15/07 3.4
7. Pitt County, North Carolina, Revenue, 5.375%
12/01/10 3.2
8. Wayne County, North Carolina, GO, 4.900% 04/01/05 3.1
9. Washington State Public Power Supply, System
Revenue Refunding, (Nuclear Project Number 2),
Series A, 5.800% 07/01/07 3.1
10. Charlotte, North Carolina, Health Care Systems
Revenue, Refunding, Mecklenburg Hospital
Authority, 6.250% 01/01/20 3.0
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.44% 15.18%
11/30/95
-------------------------
INCEPTION
(12/14/92) 5.06% 6.23%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations North
Carolina Intermediate
Municipal Bond Fund on
December 14, 1992
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/14/94 $ 9,675 $10,000
02/93 $10,142 $10,542
05/93 $10,150 $10,499
08/93 $10,496 $10,883
11/93 $10,522 $10,934
02/94 $10,557 $11,008
05/94 $10,368 $10,846
08/94 $10,509 $11,037
11/94 $10,047 $10,664
02/95 $10,722 $11,277
05/95 $11,140 $11,729
08/95 $11,323 $12,007
11/95 $11,573 $12,292
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
32
<PAGE> 206
NATIONS FUND TRUST
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 13.84%* 14.84%
11/30/95
--------------------------
INCEPTION
(12/16/92) 5.83% 5.83%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations North
Carolina Intermediate
Municipal Bond Fund on
December 16, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/16/92 $10,000 $10,000
02/93 $10,491 $10,457
05/93 $10,474 $10,414
08/93 $10,815 $10,795
11/93 $10,826 $10,845
02/94 $10,845 $10,919
05/94 $10,640 $10,759
08/94 $10,777 $10,948
11/94 $10,296 $10,577
02/95 $10,980 $11,185
05/95 $11,399 $11,634
08/95 $11,578 $11,910
11/95 $11,825 $12,192
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 10.84% 14.84%
11/30/95
--------------------------
INCEPTION
(06/07/93) 3.86% 4.99%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations North
Carolina Intermediate
Municipal Bond Fund on June
7, 1993 (inception). The
Lehman 7-Year Municipal Bond
Index is a performance
benchmark for the
intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/07/93 $10,000 $10,000
08/93 $10,306 $10,365
11/93 $10,323 $10,413
02/94 $10,348 $10,485
05/94 $10,154 $10,330
08/94 $10,285 $10,512
11/94 $ 9,826 $10,156
02/95 $10,478 $11,740
05/95 $10,878 $11,171
08/95 $11,049 $11,436
11/95 $10,984 $11,707
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
33
<PAGE> 207
NATIONS FUND TRUST
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.41%
11/30/95
----------------------
INCEPTION
(12/11/92) 6.44%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations North Carolina
Intermediate Municipal Bond
Fund on December 11, 1992
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/11/92 $10,000 $10,000
02/93 $10,498 $10,542
05/93 $10,510 $10,499
08/93 $10,872 $10,883
11/93 $10,903 $10,934
02/94 $10,943 $11,008
05/94 $10,752 $10,846
08/94 $10,904 $11,037
11/94 $10,430 $10,664
02/95 $11,137 $11,277
05/95 $11,576 $11,729
08/95 $11,773 $12,007
11/95 $12,038 $12,292
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
34
<PAGE> 208
NATIONS FUND TRUST
Nations North Carolina Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 24.7%
Hospital.............................. 16.2%
Pollution Control Revenue/
Industrial Development Revenue...... 15.9%
General Obligation.................... 13.0%
Power/Utilities Revenue............... 6.6%
Water Revenue......................... 6.6%
Housing Revenue....................... 12.2%
Other................................. 4.8%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Martin County, North Carolina, Industrial
Facilities and Pollution Control Financing
Authority Revenue Solid Waste Disposal, AMT,
(Weyerhaeuse Company), 5.650% 12/01/23 9.2%
2. Fayetteville, North Carolina, Public Works
Commission Revenue Refunding, (FGIC Insured),
4.750% 03/01/14 5.1
3. Onslow County, North Carolina, Combined
Enterprise System Revenue, (MBIA Insured), 5.875%
06/01/09 5.0
4. Charlotte, North Carolina, Health Care System
Revenue Refunding, Mecklenburg Hospital
Authority, 6.250% 01/01/20 4.9
5. Wake County, North Carolina, Hospital Revenue,
(MBIA Insured), 5.125% 10/01/26 4.5
6. North Carolina Housing Finance Agency,
Multi-family Revenue, Federal Housing Authority
Insured Mortgage, 5.350% 09/01/14 4.4
7. Buncombe County, North Carolina, Metropolitan
Sewer District, Sewer System Revenue,
Pre-refunded, Series B, 6.750% 07/01/22 3.6
8. North Carolina Medical Care Commission, Hospital
Revenue Refunding, (Rex Hospital Project), 6.250%
06/01/17 3.4
9. North Carolina Housing Finance Agency,
Single-family Revenue, Series W, 6.200% 09/01/09 3.3
10. Charlotte, North Carolina, Public Improvement,
GO, 5.300% 04/01/05 3.3
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 17.42% 22.63%
11/30/95
-------------------------
INCEPTION
(11/01/93) 2.07% 4.22%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations North
Carolina Municipal Bond Fund
on November 1, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/01/93 $ 9,575 $10,000
11/93 $ 9,498 $ 9,890
02/94 $ 9,530 $ 9,951
05/94 $ 9,077 $ 9,616
08/94 $ 9,210 $ 9,765
11/94 $ 8,509 $ 9,099
02/95 $ 9,484 $10,106
05/95 $ 9,904 $10,605
08/95 $ 9,959 $10,641
11/95 $10,435 $11,196
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
35
<PAGE> 209
NATIONS FUND TRUST
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 20.93%* 21.93%
11/30/95
-------------------------
INCEPTION
(11/03/94) 19.51% 19.51%
THROUGH
11/30/95
-------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations North
Carolina Municipal Bond Fund
on November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,933 $ 9,766
02/95 $11,056 $10,846
05/95 $11,530 $11,382
08/95 $11,577 $11,420
11/95 $12,012 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.96% 21.96%
11/30/95
--------------------------
INCEPTION
(10/21/93) 2.12% 3.46%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations North
Carolina Municipal Bond Fund
on October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
11/93 $ 9,889 $ 9,890
02/94 $ 9,908 $ 9,951
05/94 $ 9,423 $ 9,616
08/94 $ 9,548 $ 9,765
11/94 $ 8,809 $ 9,099
02/95 $ 9,805 $10,106
05/95 $10,225 $10,605
08/95 $10,267 $10,641
11/95 $10,452 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales
charge and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
36
<PAGE> 210
NATIONS FUND TRUST
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 22.87%
11/30/95
------------------------
INCEPTION
(01/11/94) 3.82%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations North Carolina
Municipal Bond Fund on
January 11, 1994
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
01/11/94 $10,000 $10,000
02/94 $ 9,769 $ 9,825
05/94 $ 9,309 $ 9,494
08/94 $ 9,449 $ 9,641
11/94 $ 8,735 $ 8,984
02/95 $ 9,741 $ 9,978
05/95 $10,177 $10,471
08/95 $10,238 $10,506
11/95 $10,733 $11,054
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
37
<PAGE> 211
NATIONS SOUTH CAROLINA INTERMEDIATE
MUNICIPAL BOND FUND
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by Michele Poirier. Ms. Poirier joined NationsBank in
1990 and is a Vice President and Fixed Income Manager with 21 years of
experience in the municipal bond industry. She earned a B.B.A. at Georgia State
University in Atlanta.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek a high level of current interest
income exempt from both Federal and South Carolina state income taxes,
consistent with relative stability of principal.
PERFORMANCE REVIEW*
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations South Carolina
Intermediate Municipal Bond Fund Trust A Shares returned 15.02%.
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations South Carolina
Municipal Bond Fund Trust A Shares returned 21.99%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Ms. Poirier shares her views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the
effect of increasing total return.
38
<PAGE> 212
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in South Carolina increased 88.5% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
39
<PAGE> 213
NATIONS FUND TRUST
Nations South Carolina Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 31.9%
Other................................. 8.3%
Water Revenue......................... 8.9%
Housing Revenue....................... 11.6%
Pollution Control Revenue/
Industrial Development Revenue....... 14.0%
Hospital.............................. 8.5%
General Obligation.................... 16.8%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. South Carolina State Housing Finance and
Development Authority, Multi-family Housing
Revenue, (United Dominion Project),
6.500% 05/01/04 7.3%
2. Medical University of South Carolina, Hospital
Facilities Revenue, Refunding, 7.200% 07/01/05 3.9
3. Richland County, South Carolina, Revenue
Refunding and Improvement, Series B, 4.850%
03/01/04 3.0
4. Grand Strand Water and Sewer Authority Revenue
Refunding, (MBIA Insured), 6.300% 06/01/05 3.0
5. Richland County, South Carolina, PCR, (Union Camp
Corporation Project), Series C, 5.875% 11/01/02 2.9
6. Rock Hill, South Carolina, School District, No.
3, Refunding, Series B, (FGIC Insured), 5.900%
02/01/02 2.8
7. York County, South Carolina, PCR, Refunding,
(Bowater Inc. Project), Series B, 6.850% 04/01/01 2.8
8. Piedmont Municipal Power Agency, Revenue Bonds,
(South Carolina Electric Company Project), 5.400%
01/01/99 2.8
9. Greenwood, South Carolina, Combined Public
Utilities, Revenue Refunding and Improvement,
(AMBAC Insured), 5.500% 12/01/06 2.8
10. Columbia, South Carolina, Waterworks and Sewer
System Revenue, Capital Appreciation, Zero Coupon
02/01/03 2.7
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.06% 14.79%
11/30/95
------------------------
INCEPTION
(05/05/92) 5.93% 6.92%
THROUGH
11/30/95
------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations South
Carolina Intermediate
Municipal Bond Fund on May
5, 1992 (inception). The
Lehman 7-Year Municipal Bond
Index is a performance
benchmark for the
intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
05/05/92 $ 9,675 $10,000
08/92 $10,045 $10,461
11/92 $10,162 $10,631
02/93 $10,708 $11,208
05/93 $10,689 $11,162
08/93 $11,025 $11,570
11/93 $11,093 $11,624
02/94 $11,130 $11,703
05/94 $10,973 $11,531
08/94 $11,125 $11,733
11/94 $10,700 $11,336
02/95 $11,373 $11,988
05/95 $11,790 $12,469
08/95 $11,974 $12,765
11/95 $12,283 $13,068
</TABLE>
- ---------------
Assumes the deduction of maximum sales charge of 3.25%
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
40
<PAGE> 214
NATIONS FUND TRUST
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 13.45%* 14.45%
11/30/95
--------------------------
INCEPTION
(06/17/92) 6.23% 6.23%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations South
Carolina Intermediate
Municipal Bond Fund on June
17, 1992 (inception).
Investor C Shares that are
redeemed within one year of
purchase are subject to a
1.00% contingent deferred
sales charge. The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/17/92 $10,000 $10,000
08/92 $10,223 $10,192
11/92 $10,327 $10,358
02/93 $10,855 $10,919
05/93 $10,830 $10,875
08/93 $11,154 $11,272
11/93 $11,206 $11,325
02/94 $11,227 $11,402
05/94 $11,055 $11,234
08/94 $11,200 $11,432
11/94 $10,764 $11,045
02/95 $11,433 $11,680
05/95 $11,843 $12,148
08/95 $12,019 $12,437
11/95 $12,320 $12,732
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 10.45% 14.45%
11/30/95
--------------------------
INCEPTION
(06/08/93) 4.15% 5.28%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations South
Carolina Intermediate
Municipal Bond Fund on June
8, 1993 (inception). The
Lehman 7-Year Municipal Bond
Index is a performance
benchmark for the
intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/08/93 $10,000 $10,000
08/93 $10,269 $10,365
11/93 $10,323 $10,413
02/94 $10,349 $10,485
05/94 $10,194 $10,330
08/94 $10,328 $10,512
11/94 $ 9,926 $10,156
02/95 $10,543 $10,740
05/95 $10,921 $11,171
08/95 $11,083 $11,436
11/95 $11,061 $11,707
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales
charge and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
41
<PAGE> 215
NATIONS FUND TRUST
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.02%
11/30/95
------------------
INCEPTION
(01/06/92) 6.86%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations South Carolina
Intermediate Municipal Bond
Fund on January 6, 1992
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
01/06/92 $10,000 $10,000
02/92 $10,044 $10,027
05/92 $10,214 $10,185
08/92 $10,535 $10,545
11/92 $10,662 $10,717
02/93 $11,228 $11,298
05/93 $11,223 $11,252
08/93 $11,580 $11,663
11/93 $11,656 $11,718
02/94 $11,699 $11,798
05/94 $11,539 $11,624
08/94 $11,705 $11,828
11/94 $11,263 $11,428
02/95 $11,978 $12,085
05/95 $12,423 $12,570
08/95 $12,623 $12,868
11/95 $12,955 $13,173
</TABLE>
- ---------------
Assumes reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
42
<PAGE> 216
NATIONS FUND TRUST
Nations South Carolina Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Pollution Control Revenue/
Industrial Development Revenue...... 36.1%
Insured............................... 21.8%
General Obligation.................... 13.8%
Hospital.............................. 10.1%
Water Revenue......................... 5.0%
Housing Revenue....................... 3.7%
Other................................. 9.5%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Darlington County, South Carolina, Industrial
Development Revenue, (Nucor Corporation Project),
Series A, 5.750% 08/01/23 6.2%
2. Berkeley County, South Carolina, PCR, South
Carolina Electric and Gas Company, 6.500%
10/01/14 5.1
3. Columbia, South Carolina, Waterworks & Sewer
System Revenue, 5.500% 02/01/09 4.9
4. Puerto Rico Industrial, Medical and Environmental
Agency, Pollution Control Facilities Finance
Authority Revenue, Higher Education, (Catholic
University Project), Series A, 5.600% 12/01/07 4.2
5. South Carolina State Public Service Authority
Revenue Bonds, Series C, 5.125% 01/01/32 3.6
6. Clemson University, South Carolina, Stadium
Refunding Bonds, Student and Faculty Housing,
Series M, (MBIA Insured), 6.600% 06/01/08 3.5
7. Charleston, South Carolina, GO, 6.500% 06/01/11 3.5
8. Georgetown County, South Carolina, PCR,
(International Paper Company Project), 6.250%
06/15/05 3.4
9. Chester County, South Carolina, Industrial
Development Authority Revenue Refunding, (Springs
Industries Inc. Project), 7.350% 02/01/14 3.4
10. Richland County, South Carolina, Sewer System
Revenue, GO, Series A, 5.500% 03/01/17 3.4
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.57% 21.74%
11/30/95
-------------------------
INCEPTION
(11/08/93) 3.86% 6.07%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations South
Carolina Municipal Bond Fund
on November 8, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/08/93 $ 9,575 $10,000
11/93 $ 9,595 $ 9,890
02/94 $ 9,707 $ 9,951
05/94 $ 9,359 $ 9,616
08/94 $ 9,503 $ 9,765
11/94 $ 8,881 $ 9,099
02/95 $ 9,816 $10,106
05/95 $10,266 $10,605
08/95 $10,357 $10,641
11/95 $10,812 $11,196
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
43
<PAGE> 217
NATIONS FUND TRUST
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 20.01%* 21.01%
11/30/95
-------------------------
INCEPTION
(11/03/94) 18.82% 18.82%
THROUGH
11/30/95
-------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations South
Carolina Municipal Bond Fund
on November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,948 $ 9,766
02/95 $10,980 $10,846
05/95 $11,466 $11,382
08/95 $11,550 $11,420
11/95 $11,937 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.08% 21.08%
11/30/95
-------------------------
INCEPTION
(10/21/93) 3.40% 4.76%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations South
Carolina Municipal Bond Fund
on October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
11/93 $ 9,900 $ 9,890
02/94 $10,000 $ 9,951
05/94 $ 9,629 $ 9,616
08/94 $ 9,763 $ 9,765
11/94 $ 9,111 $ 9,099
02/95 $10,057 $10,106
05/95 $10,504 $10,605
08/95 $10,583 $10,641
11/95 $10,732 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent sales charge and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
44
<PAGE> 218
NATIONS FUND TRUST
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
---------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 21.99%
11/30/95
--------------------
INCEPTION
(12/27/93) 5.49%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations South Carolina
Municipal Bond Fund on
December 27, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/27/93 $10,000 $10,000
02/94 $ 9,919 $ 9,825
05/94 $ 9,569 $ 9,494
08/94 $ 9,721 $ 9,641
11/94 $ 9,088 $ 8,984
02/95 $10,051 $ 9,978
05/95 $10,516 $10,471
08/95 $10,615 $10,506
11/95 $11,086 $11,054
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
45
<PAGE> 219
NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND
NATIONS TENNESSEE MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by Matt Kiselak. Mr. Kiselak is a Vice President and
Fixed Income Portfolio Manager with over 8 years of investment experience. Mr.
Kiselak joined NationsBank in 1992. He received his B.A. in economics from Pace
University in New York.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from both Federal and Tennessee state income taxes, consistent
with relative stability of principal.
PERFORMANCE REVIEW*
NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Tennessee
Intermediate Municipal Bond Fund Trust A Shares returned 15.22%.
NATIONS TENNESSEE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Tennessee
Municipal Bond Fund Trust A Shares returned 21.52%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Kiselak shares his views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the
effect of increasing total return.
46
<PAGE> 220
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in Tennessee decreased 8.5% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
47
<PAGE> 221
NATIONS FUND TRUST
Nations Tennessee Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
General Obligation.................... 23.5%
Hospital.............................. 13.3%
Insured............................... 11.8%
Other................................. 11.4%
Pollution Control Revenue/
Industrial Development Revenue...... 10.5%
Water Revenue......................... 9.0%
Pre-Refunded.......................... 7.6%
Power/Utilities Revenue............... 6.6%
Housing Revenue....................... 6.3%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Memphis, Tennessee, Water Revenue, 5.900%
01/01/04 8.9%
2. Anderson County, Tennessee, Health and
Educational Facilities Board, (Methodist Medical
Center), 5.400% 07/01/04 5.6
3. McMinn County, Tennessee, Industrial Development
Board, PCR, (Bowater Inc.), 6.850% 04/01/01 4.7
4. Puerto Rico, Industrial, Tourist, Educational,
Medical and Environmental Control Facilities
Financing Authority, (Ryder Memorial Hospital
Project), Series A, 6.400% 05/01/09 4.3
5. Williamson County, Tennessee, Capital Outlay
Notes, 5.700% 05/01/02 4.2
6. Metropolitan Government, Nashville and Davidson
County, Tennessee, Refunding, GO, 5.250% 05/15/07 4.2
7. Tennessee State, Local Development Revenue,
Series A, 5.750% 03/01/11 4.2
8. Memphis, Tennessee, GO, Series A, Pre-Refunded
6.800% 07/01/09 4.1
9. Hamilton County, Tennessee, GO, 5.000% 07/01/01 3.7
10. Puerto Rico, Electric Power Authority Revenue,
Series P, 6.750% 07/01/03 3.6
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.26% 15.00%
11/30/95
-------------------------
INCEPTION
(04/02/93) 4.12% 5.42%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Tennessee
Intermediate Municipal Bond
Fund on April 2, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
04/02/93 $ 9,675 $10,000
05/93 $ 9,748 $10,092
08/93 $10,061 $10,461
11/93 $10,128 $10,509
02/94 $10,183 $10,581
05/94 $ 9,991 $10,426
08/94 $10,134 $10,609
11/94 $ 9,681 $10,250
02/95 $10,289 $10,839
05/95 $10,672 $11,273
08/95 $10,854 $11,541
11/95 $11,133 $11,815
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the reinvestment
of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
48
<PAGE> 222
NATIONS FUND TRUST
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 13.62%* 14.62%
11/30/95
--------------------------
INCEPTION
(11/03/94) 12.97% 12.97%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Tennessee
Intermediate Municipal Bond
Fund on November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,947 $ 9,854
02/95 $10,563 $10,421
05/95 $10,947 $10,838
08/95 $11,124 $11,096
11/95 $11,301 $11,359
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 10.65% 14.65%
11/30/95
--------------------------
INCEPTION
(06/10/93) 3.88% 5.02%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Tennessee
Intermediate Municipal Bond
Fund on June 10, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/10/93 $10,000 $10,000
08/93 $10,273 $10,365
11/93 $10,332 $10,413
02/94 $10,380 $10,485
05/94 $10,175 $10,330
08/94 $10,313 $10,512
11/94 $ 9,844 $10,156
02/95 $10,455 $10,740
05/95 $10,835 $11,171
08/95 $11,012 $11,436
11/95 $10,987 $11,707
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
49
<PAGE> 223
NATIONS FUND TRUST
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.22%
11/30/95
---------------------
INCEPTION
(04/13/93) 5.40%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Tennessee
Intermediate Municipal Bond
Fund on April 13, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
04/13/93 $10,000 $10,000
05/93 $10,011 $10,092
08/93 $10,337 $10,461
11/93 $10,409 $10,509
02/94 $10,470 $10,581
05/94 $10,276 $10,426
08/94 $10,429 $10,609
11/94 $ 9,968 $10,250
02/95 $10,599 $10,839
05/95 $10,998 $11,273
08/95 $11,192 $11,541
11/95 $11,485 $11,815
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
50
<PAGE> 224
NATIONS FUND TRUST
Nations Tennessee Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 28.0%
General Obligation.................... 26.8%
Pollution Control Revenue/
Industrial Development Revenue........ 21.7%
Water Revenue......................... 9.3%
Hospital.............................. 7.7%
Other................................. 6.5%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Humphreys County, Tennessee, Industrial
Development
Board, Solid Waste Disposal Revenue, (du Pont
(E.I.) deNemours & Company Project), AMT, 6.700%
05/01/24 6.9%
2. Knox County, Tennessee, Health, Educational and
Housing Facilities Board, Hospital Facilities
Revenue Refunding, (Sanders Alliance Project),
(MBIA Insured), 7.250% 01/01/09 4.7
3. Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control, Facilities
Financing Authority, (Ryder Memorial Hospital
Project), Series A, 6.600% 05/01/14 4.0
4. Knoxville, Tennessee, Electric Revenue, Series R,
5.450% 07/01/08 4.0
5. Metropolitan Government, Nashville and Davidson
County, Tennessee, Water and Sewer Revenue, (FGIC
Insured), 5.200% 01/01/13 3.9
6. Memphis, Tennessee, GO, 5.250% 03/01/12 3.9
7. Tennessee State, GO, Series A, 7.000% 03/01/05 3.8
8. Puerto Rico Public Building Authority, Guaranteed
Public Education and Health Facilities Revenue
Refunding, Series M, 5.500% 07/01/21 3.8
9. Metropolitan Government, Nashville and Davidson
County, Tennessee, Health and Education
Facilities Board Revenue, (Meharry Medical
College Project), (AMBAC Insured), 7.000%
12/01/11 3.8
10. Memphis, Tennessee, Electric System Revenue
Refunding, Pre-Refunded, 4.900% 01/01/11 3.8
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
----------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.13% 21.28%
11/30/95
-------------------------
INCEPTION
(11/02/93) 3.25% 5.43%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Tennessee
Municipal Bond Fund on
November 2, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/02/93 $ 9,575 $10,000
11/93 $ 9,534 $ 9,890
02/94 $ 9,618 $ 9,951
05/94 $ 9,261 $ 9,616
08/94 $ 9,395 $ 9,765
11/94 $ 8,811 $ 9,099
02/95 $ 9,747 $10,106
05/95 $10,165 $10,605
08/95 $10,256 $10,641
11/95 $10,687 $11,196
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
51
<PAGE> 225
NATIONS FUND TRUST
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 19.62%* 20.62%
11/30/95
--------------------------
INCEPTION
(11/03/94) 18.98% 18.98%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Tennessee
Municipal Bond Fund on
November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,993 $ 9,766
02/95 $11,039 $10,846
05/95 $11,496 $11,382
08/95 $11,583 $11,420
11/95 $11,954 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 15.63% 20.63%
11/30/95
--------------------------
INCEPTION
(10/21/93) 2.85% 4.20%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Tennessee
Municipal Bond Fund on
October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
11/93 $ 9,839 $ 9,890
02/94 $ 9,911 $ 9,951
05/94 $ 9,529 $ 9,616
08/94 $ 9,654 $ 9,765
11/94 $ 9,042 $ 9,099
02/95 $ 9,989 $10,106
05/95 $10,402 $10,605
08/95 $10,481 $10,641
11/95 $10,611 $11,196
</TABLE>
- ---------------
Assumes the deduction of the maximum applicable contingent deferred sales
charge and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
52
<PAGE> 226
NATIONS FUND TRUST
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 21.52%
11/30/95
-------------------
INCEPTION
(03/02/94) 7.49%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Tennessee
Municipal Bond Fund on March
2, 1994 (inception). The
Lehman 20-Year Municipal
Bond Index is a performance
benchmark for the tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
03/02/94 $10,000 $10,000
05/94 $ 9,800 $ 9,664
08/94 $ 9,947 $ 9,813
11/94 $ 9,334 $ 9,144
02/95 $10,330 $10,155
05/95 $10,778 $10,657
08/95 $10,879 $10,693
11/95 $11,343 $11,251
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
53
<PAGE> 227
NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND
NATIONS TEXAS MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by Matt Kiselak. Mr. Kiselak is a Vice President and
Fixed Income Portfolio Manager with over 8 years of investment experience. Mr.
Kiselak joined NationsBank in 1992. He received his B.A. in economics from Pace
University in New York.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from Federal income tax, consistent with the relative stability of
principal.
PERFORMANCE REVIEW*
NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Texas Intermediate
Municipal Bond Fund Trust A Shares returned 13.83%.
NATIONS TEXAS MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Texas Municipal
Bond Fund Trust A Shares returned 22.09%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Kiselak shares his views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
54
<PAGE> 228
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS A LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in Texas decreased 12.4% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward, to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
55
<PAGE> 229
NATIONS FUND TRUST
Nations Texas Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
General Obligation.................... 22.8%
Other................................. 8.2%
Pollution Control Revenue/
Industrial Development Revenue...... 6.9%
Education............................. 12.2%
Hospital.............................. 11.9%
Insured............................... 18.3%
Pre-Refunded.......................... 14.9%
Transportation........................ 4.8%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Arlington, Texas, Independent School District,
GO, (PSFG Insured), 5.800% 02/15/02 6.9%
2. Travis County, Texas, Limited Tax Revenue
Refunding, Series A, (MBIA Insured), 5.750%
03/01/06 5.1
3. New Jersey State Turnpike Authority Refunding,
Series C, 6.500% 01/01/09 4.8
4. Harris County, Texas, Municipal Utilities
District, GO, 5.750% 10/01/03 4.3
5. Austin, Texas, GO, Series A, 8.875% 09/01/00 4.3
6. Maricopa County, Arizona, Unified School District
No. 69, (Paradise Valley Refunding Project), GO,
(MBIA Insured), 6.350% 07/01/10 3.7
7. Tarrant County, Texas, Certificates of
Obligation, Pre-refunded, 6.750% 07/15/07 3.6
8. Garland, Texas, Independent School District, GO,
(PSFG Insured), 5.500% 02/15/00 3.6
9. Alliance Airport Authority Inc., Texas, Special
Facilities Revenue, (American Airlines Inc.
Project), 7.000% 12/01/11 3.5
10. Lower Colorado River Authority, Texas, Revenue
Refunding, Series A, (AMBAC Insured), 6.400%
01/01/01 3.5
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 9.91% 13.60%
11/30/95
-------------------------
INCEPTION
(02/04/93) 4.05% 5.28%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Texas
Intermediate Municipal Bond
Fund on February 4, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
02/04/93 $ 9,675 $10,000
05/93 $ 9,854 $10,265
08/93 $10,146 $10,640
11/93 $10,221 $10,689
02/94 $10,212 $10,762
05/94 $10,109 $10,604
08/94 $10,226 $10,790
11/94 $ 9,847 $10,425
02/95 $10,376 $11,024
05/95 $10,757 $11,466
08/95 $10,918 $11,739
11/95 $11,186 $12,017
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
56
<PAGE> 230
NATIONS FUND TRUST
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 12.27%* 13.27%
11/30/95
--------------------------
INCEPTION
(11/03/94) 12.37% 12.37%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Texas
Intermediate Municipal Bond
Fund on November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
02/95 $10,539 $10,421
05/95 $10,917 $10,838
08/95 $11,072 $11,096
11/95 $11,236 $11,359
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 9.27% 13.27%
11/30/95
--------------------------
INCEPTION
(06/22/93) 3.45% 4.61%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Texas
Intermediate Municipal Bond
Fund on June 22, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/22/93 $10,000 $10,000
08/93 $10,195 $10,179
11/93 $10,261 $10,226
02/94 $10,244 $10,296
05/94 $10,132 $10,145
08/94 $10,241 $10,323
11/94 $ 9,854 $ 9,974
02/95 $10,376 $10,547
05/95 $10,749 $10,970
08/95 $10,902 $11,230
11/95 $10,862 $11,497
</TABLE>
- ---------------
Assumes the deduction of all maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
57
<PAGE> 231
NATIONS FUND TRUST
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 13.83%
11/30/95
------------------
INCEPTION
(01/12/93) 6.01%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Texas
Intermediate Municipal Bond
Fund on January 12, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
01/12/93 $10,000 $10,000
02/93 $10,435 $10,457
05/93 $10,377 $10,414
08/93 $10,689 $10,795
11/93 $10,772 $10,845
02/94 $10,767 $10,919
05/94 $10,663 $10,759
08/94 $10,792 $10,948
11/94 $10,397 $10,577
02/95 $10,961 $11,185
05/95 $11,369 $11,634
08/95 $11,545 $11,910
11/95 $11,835 $12,192
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
58
<PAGE> 232
NATIONS FUND TRUST
Nations Texas Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 28.0%
General Obligation.................... 23.3%
Hospital.............................. 17.4%
Pollution Control Revenue/
Industrial Development Revenue...... 8.9%
Education............................. 7.1%
Water Revenue......................... 3.8%
Power/Utilities Revenue............... 3.5%
Other................................. 8.0%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Irving, Texas, Independent School District,
Capital Appreciation Refunding, GO,
(PSFG Insured), Zero Coupon 02/15/02 6.4%
2. Red River Authority, Texas, PCR, (Hoechst
Celanese Corporation Project), AMT, 6.875%
04/01/17 6.0
3. Tarrant County, Texas, Health Facilities
Development Corporation, Health System Revenue,
(Harris Methodist Health System), 6.000% 09/01/10 6.0
4. Sabine River Authority, Texas, PCR Refunding,
(Texas Utilities Electric Company Project),
Series B, (MBIA Insured), 5.850% 05/01/22 5.8
5. Lucas County, Ohio, Hospital Revenue, (Flower
Hospital Project), 6.125% 12/01/13 5.7
6. Lower Colorado River Authority, Texas, Revenue
Refunding, Junior Lien, Fifth Supplemental
Series, (MBIA Insured), 5.250% 01/01/15 5.6
7. Dallas-Fort Worth, Texas, Regional Airport
Revenue Refunding, Series A, (MBIA Insured),
6.000% 11/01/09 4.5
8. Sherman, Texas, Independent School District, GO,
(PSFG Insured), 6.500% 02/15/20 4.0
9. Texas State, Water Development Board Revenue,
State Revolving Fund, Senior Lien, 6.400%
07/15/08 3.7
10. Guam Power Authority Revenue, Series A, 6.300%
10/01/22 3.4
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.67% 21.85%
04/30/95
-------------------------
INCEPTION
(12/17/93) 1.96% 4.25%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Texas
Municipal Bond Fund on
December 17, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/17/93 $ 9,575 $10,000
02/94 $ 9,408 $ 9,825
05/94 $ 9,023 $ 9,494
08/94 $ 9,172 $ 9,641
11/94 $ 8,523 $ 8,984
02/95 $ 9,376 $ 9,978
05/95 $ 9,857 $10,471
08/95 $ 9,943 $10,506
11/95 $10,386 $11,054
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
59
<PAGE> 233
NATIONS FUND TRUST
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 20.15%* 21.15%
11/30/95
-------------------------
INCEPTION
(11/03/94) 19.05% 19.05%
THROUGH
11/30/95
-------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Texas
Municipal Bond Fund on
November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
11/94 $ 9,957 $ 9,766
02/95 $10,938 $10,846
05/95 $11,483 $11,382
08/95 $11,565 $11,420
11/95 $11,962 $12,016
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.19% 21.19%
11/30/95
-------------------------
INCEPTION
(10/21/93) 1.96% 3.30%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Texas
Municipal Bond Fund on
October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
11/93 $ 9,818 $ 9,890
02/94 $ 9,796 $ 9,951
05/94 $ 9,382 $ 9,616
08/94 $ 9,524 $ 9,765
11/94 $ 8,838 $ 9,099
02/95 $ 9,709 $10,106
05/95 $10,193 $10,605
08/95 $10,267 $10,641
11/95 $10,419 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
60
<PAGE> 234
NATIONS FUND TRUST
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 22.09%
11/30/95
------------------
INCEPTION
(02/03/94) 3.88%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Texas Municipal
Bond Fund on February 3,
1994 (inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
02/03/94 $10,000 $10,000
05/94 $ 9,285 $ 9,376
08/94 $ 9,443 $ 9,521
11/94 $ 8,779 $ 8,872
02/95 $ 9,662 $ 9,854
05/95 $10,163 $10,341
08/95 $10,257 $10,375
11/95 $10,719 $10,917
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
61
<PAGE> 235
NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
NATIONS VIRGINIA MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Funds are managed by John Kohl. Mr. Kohl joined NationsBank in 1994 and
is a Senior Vice President and Fixed Income Portfolio Manager with 17 years of
experience in the municipal bond industry. He holds a joint B.A. in Economics
and North American Studies from McGill University in Montreal.
INVESTMENT OBJECTIVE:
The Funds' investment objective is to seek a high level of current interest
income exempt from both Federal and Virginia state income taxes, consistent with
relative stability of principal.
PERFORMANCE REVIEW*
NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Virginia
Intermediate Municipal Bond Fund Trust A Shares returned 14.39%.
NATIONS VIRGINIA MUNICIPAL BOND FUND
For the one-year period ended November 30, 1995, Nations Virginia Municipal
Bond Fund Trust A Shares returned 22.63%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Kohl shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration that their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer groups extended their maturities and
the Funds were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Funds began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
62
<PAGE> 236
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances. Over the course of the year, issuance of new debt
in Virginia decreased 14.8% over the previous year.*
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Funds will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Funds will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
63
<PAGE> 237
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
General Obligation.................... 42.5%
Other................................. 6.4%
Transportation........................ 6.1%
Water Revenue......................... 7.7%
Pollution Control Revenue/
Industrial Development Revenue...... 2.3%
Education............................. 7.6%
Insured............................... 12.0%
Pre-Refunded.......................... 15.4%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Chesapeake, Virginia, Revenue Refunding, 5.125%
12/01/05 2.6%
2. Virginia State Transportation Board Authority,
Contract Revenue, Route 58, Series A, 5.500%
05/15/09 2.2
3. Newport News, Virginia, Public Improvement,
Series B, 5.200% 11/01/04 2.1
4. Virginia State, Public School Authority Revenue,
5.000% 01/01/04 2.0
5. Henrico County, Virginia, Public Improvement
Authority, Refunding, 4.600% 01/15/01 2.0
6. Southeastern Public Service Authority, Virginia,
(MBIA Insured), Series A, 5.100% 07/01/08 2.0
7. Virginia State, Public School Authority Revenue,
5.750% 01/01/00 1.8
8. Hampton Roads Sanitation District, Virginia,
Sewer Revenue Refunding, 4.400% 10/01/01 1.8
9. Augusta County, Virginia, Industrial Development
Authority, Pre-refunded, 7.000% 09/01/21 1.6
10. Fairfax County, Virginia, Public Improvement, GO,
Series A, Pre-refunded, 6.250% 04/01/07 1.5
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 10.45% 14.16%
11/30/95
-------------------------
FIVE YEARS 6.07% 6.77%
ENDED 11/30/95
-------------------------
INCEPTION
(12/05/89) 6.31% 6.89%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Virginia
Intermediate Municipal Bond
Fund on December 5, 1989
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/05/89 $ 9,675 $10,000
12/89 $ 9,702 $10,106
03/90 $ 9,819 $10,150
06/90 $ 9,984 $10,382
09/90 $10,066 $10,453
12/90 $10,435 $10,853
03/91 $10,642 $11,111
06/91 $10,794 $11,303
09/91 $11,092 $11,732
12/91 $11,443 $12,119
03/92 $11,430 $12,109
06/92 $11,791 $12,538
09/92 $12,049 $12,882
12/92 $12,227 $13,093
03/93 $12,570 $13,512
06/93 $12,946 $13,887
09/93 $13,310 $14,289
12/93 $13,439 $14,462
03/94 $12,887 $13,916
06/94 $12,974 $14,062
09/94 $12,998 $14,197
12/94 $12,839 $14,060
03/95 $13,505 $14,799
06/95 $13,859 $15,220
09/95 $14,152 $15,655
11/95 $14,420 $15,965
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
64
<PAGE> 238
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 12.82%* 13.82%
11/30/95
--------------------------
INCEPTION
(06/17/92) 5.71% 5.71%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Virginia
Intermediate Municipal Bond
Fund on June 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/17/92 $10,000 $10,000
06/92 $10,059 $
09/92 $10,264 $10,192
12/92 $10,399 $10,358
03/93 $10,666 $10,919
06/93 $10,978 $10,875
09/93 $11,270 $11,272
12/93 $11,361 $11,325
03/94 $10,879 $11,402
06/94 $10,944 $11,234
09/94 $10,955 $11,432
12/94 $10,813 $11,045
03/95 $11,366 $11,680
06/95 $11,655 $12,148
09/95 $11,893 $12,437
11/95 $12,112 $12,732
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 9.82% 13.82%
11/30/95
--------------------------
INCEPTION
(06/07/93) 3.58% 4.72%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Virginia
Intermediate Municipal Bond
Fund on June 7, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/07/93 $10,000 $10,000
06/93 $10,143 $
09/93 $10,419 $10,365
12/93 $10,509 $10,413
03/94 $10,069 $10,485
06/94 $10,130 $10,330
09/94 $10,140 $10,512
12/94 $10,009 $10,156
03/95 $10,521 $10,740
06/95 $10,788 $11,171
09/95 $11,009 $11,436
11/95 $10,911 $11,707
</TABLE>
- ---------------
Assumes the deduction of the maximum applicable contingent deferred sales
charge and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
65
<PAGE> 239
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ----------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 14.39%
11/30/95
-------------------
FIVE YEARS 6.90%
ENDED 11/30/95
-------------------
INCEPTION
(09/20/89) 7.01%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Virginia
Intermediate Municipal Bond
Fund on September 20, 1989
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
09/20/89 $10,000 $10,000
09/89 $10,000
12/89 $10,175 $10,358
03/90 $10,296 $10,403
06/90 $10,470 $10,641
09/90 $10,556 $10,713
12/90 $10,942 $11,124
03/91 $11,160 $11,389
06/91 $11,319 $11,585
09/91 $11,632 $12,025
12/91 $11,999 $12,421
03/92 $11,986 $12,411
06/92 $12,367 $12,851
09/92 $12,643 $13,203
12/92 $12,834 $13,419
03/93 $13,187 $13,849
06/93 $13,599 $14,233
09/93 $13,987 $14,646
12/93 $14,127 $14,822
03/94 $13,553 $14,263
06/94 $13,651 $14,413
09/94 $13,681 $14,551
12/94 $13,521
03/95 $14,229 $15,169
06/95 $14,610 $15,600
09/95 $14,927 $16,045
11/95 $15,214 $16,363
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
66
<PAGE> 240
NATIONS FUND TRUST
Nations Virginia Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Hospital.............................. 16.7%
Insured............................... 16.6%
General Obligation.................... 16.3%
Pollution Control Revenue/
Industrial Development Revenue....... 14.2%
Water Revenue......................... 11.2%
Education............................. 8.3%
Housing Revenue....................... 4.3%
Cash and Cash-Equivalents............. 4.8%
Other................................. 7.6%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Prince William County, Virginia, Industrial
Development Authority, Hospital Revenue Refunding,
(Prince William Hospital), 5.625% 04/01/12 6.2%
2. Fairfax County, Virginia, Sewer Revenue
Refunding, (AMBAC Insured), 5.500% 11/15/13 4.9
3. Augusta County, Virginia, Industrial Development
Authority, Hospital Revenue Refunding, (Augusta
Hospital Corporation), (AMBAC Insured), 5.500%
09/01/15 4.8
4. Rivanna, Virginia, Regional Water and Sewer
Authority, Regional Water and Sewer Systems
Revenue Refunding, 6.450% 10/01/12 4.8
5. Richmond, Virginia, Metropolitan Expressway
Authority, Revenue Refunding, Series B, (FGIC
Insured), 6.250% 07/15/22 4.1
6. West Point, Virginia, Industrial Development
Authority, Solid Waste Disposal Revenue, AMT,
(Chesapeake Corporation Project), Series A,
6.375% 03/01/19 3.9
7. Giles County, Virginia, Industrial Development
Authority, Revenue Exempt Facilities, (Hoechst
Celanese Corporation Project), AMT, 5.950%
12/01/25 3.9
8. Virginia State, Resource Authority, Sewer Systems
Revenue, (Hopewell Regional Wastewater Facility),
Series A, AMT, 6.000% 10/01/15 3.7
9. James City County, Virginia, Public Improvement,
GO, (FGIC Insured), 5.250% 12/15/14 3.3
10. Virginia State, Public School Authority Revenue,
Series A, 6.125% 08/01/11 3.3
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 17.19% 22.39%
11/30/95
-------------------------
INCEPTION
(11/08/93) 2.17% 4.34%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Virginia
Municipal Bond Fund on
November 8, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/08/93 $ 9,575 $10,000
12/93 $ 9,773 $ 9,890
03/94 $ 8,948 $ 9,951
06/94 $ 8,968 $ 9,616
09/94 $ 8,977 $ 9,765
12/94 $ 8,841 $ 9,099
03/95 $ 9,561 $10,106
06/94 $ 9,783 $10,605
09/95 $10,064 $10,641
11/95 $10,452 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum sales charge of 4.25% and the reinvestment
of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
67
<PAGE> 241
NATIONS FUND TRUST
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 20.71%* 21.71%
11/30/95
--------------------------
INCEPTION
(11/03/94) 19.31% 19.31%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Virginia
Municipal Bond Fund on
November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 20-Year
Municipal Bond Index is a
performance benchmark for
the tax-exempt bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
12/94 $10,279 $ 9,766
03/95 $11,101 $10,846
06/95 $11,343 $11,382
09/95 $11,652 $11,420
11/95 $11,990 $12,016
</TABLE>
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.72% 21.72%
11/30/95
--------------------------
INCEPTION
(10/21/93) 1.61% 2.94%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Virginia
Municipal Bond Fund on
October 21, 1993
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/21/93 $10,000 $10,000
12/93 $10,047 $ 9,890
03/94 $ 9,185 $ 9,951
06/94 $ 9,193 $ 9,616
09/94 $ 9,189 $ 9,765
12/94 $ 9,038 $ 9,099
03/95 $ 9,761 $10,106
06/95 $ 9,974 $10,605
09/95 $10,246 $10,641
11/95 $10,342 $11,196
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
68
<PAGE> 242
NATIONS FUND TRUST
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 22.63%
11/30/95
------------------
INCEPTION
(01/11/94) 3.58%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Virginia
Municipal Bond Fund on
January 11, 1994
(inception). The Lehman
20-Year Municipal Bond Index
is a performance benchmark
for the tax-exempt bond
market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 20-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
01/11/94 $10,000 $10,000
03/94 $ 9,118 $ 9,825
06/94 $ 9,143 $ 9,494
09/94 $ 9,156 $ 9,641
12/94 $ 9,023 $ 8,984
03/95 $ 9,762 $ 9,978
06/95 $ 9,994 $10,471
09/95 $10,286 $10,506
11/95 $10,686 $11,054
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
69
<PAGE> 243
NATIONS SHORT-TERM MUNICIPAL INCOME FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by Matt Kiselak. Mr. Kiselak is a Vice President and
Fixed Income Portfolio Manager with over 8 years of investment experience. Mr.
Kiselak joined NationsBank in 1992. He received his B.A. in economics from Pace
University in New York.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek a high level of current interest
income that is exempt from Federal income taxes.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Short-Term
Municipal Income Fund Trust A Shares returned 8.16%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Kiselak shares his views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
In 1995, the Fund acquired bonds with relatively higher coupons. These
higher coupon bonds consisted of high grade (Aaa/AAA or Aa/AA) general
obligation and insured premium bonds, and lower quality (Baa/BBB) hospital and
corporate-backed par bonds. This credit barbell approach enhanced performance.
To take advantage of declining interest rates, the Fund's weighted average
maturity was maintained at the maximum allowed by prospectus (three years) for
most of the year. The Lipper Short Municipal Debt universe** includes many funds
that may extend their weighted average maturities to five years.
HOW DOES THE BARBELL STRATEGY WORK?
A credit barbell is the combination of the highest and lowest quality
securities as reflected by ratings and sectors. The high coupon, high grade
bonds purchased contributed to the Fund's performance by adding income during
the year and appreciating in line with the market as rates declined. These bonds
also provided a high degree of liquidity and, therefore, limited the Fund's need
for high levels of cash equivalents. The lower quality bonds performed strongly
as credit spreads contracted, a result of improving credit conditions.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN GENERAL FOR 1996?
I believe that the market will continue to react to discussions about tax
reform which will likely keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Fund will reflect certain maturity segments of the yield
curve, based on its average maturity characteristics. Therefore, the outlook for
the Fund will go hand-in-hand with the outlook for that maturity segment of the
market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
** Source: Lipper Analytical Services, Inc., an independent mutual fund
performance monitor.
70
<PAGE> 244
NATIONS FUND TRUST
Nations Short-Term Municipal Income Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
General Obligation.................... 26.9%
Power/Utilities Revenue............... 9.4%
Other................................. 6.7%
Transportation........................ 9.0%
Education............................. 7.1%
Hospital.............................. 6.9%
Insured............................... 24.7%
Pre-Refunded.......................... 9.3%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Jefferson County, Alabama, Board of Education,
Warrant Anticipation Notes, 4.900% 12/01/95 3.8%
2. Norfolk, Virginia, GO, Pre-refunded, 6.600%
06/01/00 3.2
3. North Slope Borough, Alaska, GO, Series B, (CGIC
Insured), 6.100% 06/30/99 3.2
4. University of California, Hospital Revenues,
Refunding, (UCLA Medical Center), (MBIA Insured),
8.000% 12/01/97 3.2
5. Louisiana State, Refunding, GO, Series A,
(MBIA/IBC Insured), 6.600% 08/01/97 3.2
6. Arizona State Transportation Board, Excise Tax
Revenue, (Maricopa County Regional Area Road
Fund), 7.200% 07/01/97 3.2
7. Washoe County, Nevada, Airport Authority, Airport
System Improvement Revenue, Series A, 5.100%
07/01/99 3.1
8. Philadelphia, Pennsylvania, Water and Wastewater
Revenue, 4.500% 06/15/97 3.1
9. Detroit, Michigan, GO, 5.375% 05/01/96 3.1
10. New Mexico Mortgage Finance Authority,
Single-family Mortgage Purchase Refunding, Series
A-1, 5.900% 07/01/99 3.0
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 6.33% 7.95%
11/30/95
------------------------
INCEPTION
(11/02/93) 3.48% 4.23%
THROUGH
11/30/95
------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 1.50% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Short-Term
Municipal Income Fund on
November 2, 1993
(inception). The Lehman
3-Year Municipal Bond Index
is a performance benchmark
comprised of 8,000 actual
bonds.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 3-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/02/93 $ 9,850 $10,000
12/93 $ 9,954 $ 9,986
03/94 $ 9,860 $10,078
06/94 $ 9,917 $10,063
09/94 $10,001 $10,185
12/94 $ 9,981 $10,117
03/95 $10,266 $10,353
06/95 $10,480 $10,641
09/95 $10,609 $10,864
11/95 $10,736 $11,017
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 1.50% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
71
<PAGE> 245
NATIONS FUND TRUST
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 7.95%
11/30/95
------------------
INCEPTION
(05/19/94) 5.43%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Short-Term
Municipal Income Fund on May
19, 1994 (inception). The
Lehman 3-Year Municipal Bond
Index is a performance
benchmark comprised of 8,000
actual bonds.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 3-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
05/19/94 $10,000 $10,000
06/94 $10,017
09/94 $10,101 $10,122
12/94 $10,082 $10,054
03/95 $10,373 $10,288
06/95 $10,588 $10,575
09/95 $10,717 $10,796
11/95 $10,844 $10,948
</TABLE>
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
-------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 7.78%
11/30/95
-------------------
INCEPTION
(10/12/93) 3.92%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Short-Term
Municipal Bond Fund on
October 12, 1993
(inception). The Lehman
3-Year Municipal Bond Index
is a performance benchmark
comprised of 8,000 actual
bonds.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 3-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/12/93 $10,000 $10,000
12/93 $10,095 $10,008
03/94 $ 9,995 $10,100
06/94 $10,049 $10,084
09/94 $10,130 $10,207
12/94 $10,106 $10,138
03/95 $10,391 $10,375
06/95 $10,603 $10,664
09/95 $10,730 $10,887
11/95 $10,855 $11,040
</TABLE>
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
72
<PAGE> 246
NATIONS FUND TRUST
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 8.16%
11/30/95
-------------------
INCEPTION
(10/07/93) 4.27%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Short-Term
Municipal Income Fund on
October 7, 1993 (inception).
The Lehman 3-Year Municipal
Bond Index is a performance
benchmark comprised of 8,000
actual bonds.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 3-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
10/07/93 $10,000 $10,000
12/93 $10,107 $10,008
03/94 $10,014 $10,100
06/94 $10,076 $10,084
09/94 $10,168 $10,207
12/94 $10,153 $10,138
03/95 $10,448 $10,375
06/95 $10,671 $10,664
09/95 $10,808 $10,887
11/95 $10,940 $11,040
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
73
<PAGE> 247
NATIONS INTERMEDIATE MUNICIPAL BOND FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by John Kohl. Mr. Kohl joined NationsBank in 1994 and
is a Senior Vice President and Fixed Income Portfolio Manager with 17 years of
experience in the municipal bond industry. He holds a joint B.A. in Economics
and North American Studies from McGill University in Montreal.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek higher than money market yields.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Intermediate
Municipal Bond Fund Trust A Shares returned 15.60%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Mr. Kohl shares his views on financial market
conditions and Fund performance for the fiscal year ended November 30, 1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Fund's peer group extended its maturities and the
Fund was no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Fund began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
74
<PAGE> 248
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE MUNICIPAL
BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE COURSE OF
THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances.
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe that the market will continue to react to discussions about tax
reform. It is likely to keep the municipal yield curve somewhat more positively
sloped than in the absence of these discussions.
By nature, the Fund will reflect certain maturity segments of the yield
curve, based on its average maturity characteristics. Therefore, the outlook for
the Fund will go hand-in-hand with the outlook for that maturity segment of the
market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
* Source: Securities Data Corp.
75
<PAGE> 249
NATIONS FUND TRUST
Nations Intermediate Municipal Bond Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Insured............................... 22.4%
Pollution Control Revenue/
Industrial Development Revenue........ 11.6%
General Obligation.................... 17.4%
Other................................. 8.4%
Hospital.............................. 11.0%
Education............................. 6.6%
Housing Revenue....................... 6.4%
Pre-Refunded.......................... 9.0%
Power/Utilities Revenue............... 7.2%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Alaska State Student Loan, Corporation, Student
Loan Revenue, Series A, 5.250% 07/01/03 4.3%
2. Duval County, Florida, Housing Finance Authority
Refunding, (Greentree Place Project), 6.750%
04/01/25 3.6
3. Chicago, Illinois, Gas Supply Revenue, 6.875%
03/01/15 3.5
4. Washington Suburban Sanitation District
Authority, Maryland, Water Supply Revenue, GO,
4.900% 12/01/05 3.3
5. San Diego County, California, Regional
Transportation Commission Sales Tax Revenue,
Series A, 6.000% 04/01/08 3.2
6. Maine State, Municipal Board Refunding, Series A,
4.900% 11/01/02 3.1
7. Prince William County, Virginia, GO, Series C,
5.000% 08/01/06 3.0
8. District of Columbia, GO, Series C, Pre-refunded,
(AMBAC Insured) 7.600% 06/01/01 2.9
9. Geisinger Authority, Pennsylvania, Health Systems
Revenue, Series A, 6.000% 07/01/01 2.8
10. Maryland State Transportation Authority Special
Obligation Revenue, (Baltimore/Washington D.C.
International Airport Project), Series A, AMT,
(FGIC Insured), 6.400% 07/01/19 2.7
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
----------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.63% 15.38%
11/30/95
-------------------------
INCEPTION
(08/17/93) 3.42% 4.93%
THROUGH
11/30/95
-------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 3.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations
Intermediate Municipal Bond
Fund on August 17, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
08/17/93 $ 9,675 $10,000
09/93 $ 9,857 $10,109
12/93 $ 9,979 $10,231
03/94 $ 9,571 $ 9,845
06/94 $ 9,620 $ 9,948
09/94 $ 9,657 $10,044
12/94 $ 9,502 $ 9,947
03/95 $10,067 $10,470
06/95 $10,311 $10,768
09/95 $10,570 $11,075
11/95 $10,800 $11,294
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 3.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
76
<PAGE> 250
NATIONS FUND TRUST
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 13.96%* 14.96%
11/30/95
--------------------------
INCEPTION
(11/03/94) 12.95% 12.95%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations
Intermediate Municipal Bond
Fund on November 3, 1994
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman 7-Year
Municipal Bond Index is a
performance benchmark for
the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
11/03/94 $10,000 $10,000
12/94 $10,063 $ 9,854
03/95 $10,655 $10,421
06/95 $10,903 $10,838
09/95 $11,162 $11,096
11/95 $11,299 $11,359
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 11.02% 15.02%
11/30/95
--------------------------
INCEPTION
(12/02/93) 3.10% 4.54%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations
Intermediate Municipal Bond
Fund on December 2, 1993
(inception). The Lehman
7-Year Municipal Bond Index
is a performance benchmark
for the intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
12/02/93 $10,000 $10,000
12/93 $10,150
03/94 $ 9,730 $10,068
06/94 $ 9,776 $ 9,920
09/94 $ 9,806 $10,095
12/94 $ 9,641 $ 9,753
03/95 $10,207 $10,314
06/95 $10,447 $10,727
09/95 $10,700 $10,982
11/95 $10,627 $11,242
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales
charge and the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
77
<PAGE> 251
NATIONS FUND TRUST
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
---------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 15.60%
11/30/95
---------------------
INCEPTION
(07/30/93) 5.54%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Intermediate
Municipal Bond Fund on July
30, 1993 (inception). The
Lehman 7-Year Municipal Bond
Index is a performance
benchmark for the
intermediate-term,
investment grade tax-exempt
bond market.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman 7-Year
Date Reinvested Municipal Bond Index
<S> <C> <C>
07/30/93 $10,000 $10,000
09/93 $10,304 $10,289
12/93 $10,435 $10,413
03/94 $10,015 $10,020
06/94 $10,076 $10,126
09/94 $10,119 $10,223
12/94 $ 9,961 $10,124
03/95 $10,559 $10,656
06/95 $10,821 $10,959
09/95 $11,092 $11,272
11/95 $11,342 $11,495
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
78
<PAGE> 252
NATIONS MUNICIPAL INCOME FUND
PERFORMANCE AND COMMENTARY
PORTFOLIO MANAGER:
The Fund is managed by Michele Poirier. Ms. Poirier joined NationsBank in
1990 and is a Vice President and Fixed Income Manager with 21 years of
experience in the municipal bond industry. She earned a B.B.A. at Georgia State
University in Atlanta.
INVESTMENT OBJECTIVE:
The Fund's investment objective is to seek a high level of current interest
income that is exempt from Federal income taxes.
PERFORMANCE REVIEW*
For the one-year period ended November 30, 1995, Nations Municipal Income
Fund Trust A Shares returned 21.55%.
PORTFOLIO MANAGER COMMENTARY
In the following interview, Ms. Poirier shares her views on financial
market conditions and Fund performance for the fiscal year ended November 30,
1995.
HOW WOULD YOU DESCRIBE THE MUNICIPAL BOND MARKET OVER THE PAST 12 MONTHS?
Nineteen hundred ninety-five will be remembered as a period of declining
interest rates. However, not many forecasters called for rates to fall to the
extent they did. The yields on intermediate- and longer-term municipal bonds did
not decline to the same extent as taxable corporate debt or U.S. Treasury bonds
of comparable maturities. Much of this was due to concern about pending
legislation in regard to tax reform, specifically, the prospects for a flat tax.
Throughout the year, it was possible to obtain greater returns from
extending municipal bond maturities than in extending U.S. Treasury maturities.
This is because the risk premium for longer municipal bonds was maintained
throughout the year. This was primarily due to the fear of tax reform, both in
terms of the discussions of flat tax proposals, as well as discussions about
lowering tax rates across the board.
WHAT DROVE FUND PERFORMANCE OVER THE PAST 12 MONTHS?
From a broad-based perspective, it was duration, which is a measure of the
sensitivity of a bond's price to changes in interest rates. The intermediate-
and long-term portfolios were longer in duration than their respective peer
groups going into the year, which provided the Funds with an advantage. On the
expectation of lower interest rates, going into the year the intermediate- and
long-term portfolios were positioned with longer durations than their targets
and respective peer groups. This provided the Funds with a performance advantage
when the bond market began to rally and interest rates fell. However, during the
second half of the year, the Funds' peer group extended their maturities and we
were no longer markedly different in duration.
During the second half of the year, credit took on greater significance.
The Fund began to initiate and acquire positions in lower-rated issues,
BBB-rated hospital and corporate-backed debt in particular. Gains from those
sectors, which resulted from the yield differential between BBB and AAA-rated
bonds, continued to help performance through the second half of the fiscal year.
- ---------------
* The performance shown includes the effect of fee waivers by the investment
adviser and/or the administrator(s). Such fee waivers have the effect of
increasing total return.
79
<PAGE> 253
THE SUPPLY OF "NEW ISSUE" MUNICIPAL DEBT IS AN IMPORTANT FACTOR IN THE
MUNICIPAL BOND MARKET. HOW WOULD YOU DESCRIBE SUPPLY CHARACTERISTICS OVER THE
COURSE OF THE YEAR?
New issue supply in 1995 was slightly below the relatively low levels of
issuance seen in 1994. The following chart shows historical municipal bond
issuance in millions ($) on a yearly basis.*
[CHART]
While new issue supply was only slightly less in 1995 than the previous
year, one can see that new issue supply was dramatically lower in 1995 and 1994
than the record high of $277 billion set in 1993, when interest rates reached
their lowest levels in decades. In 1993, state and local governments took
advantage of low rates by issuing new debt and refunding much of their higher
rate debt that had been issued in prior years -- thus the high level of new
issuance in 1993.
IS LOWER NEW ISSUANCE A POSITIVE FACTOR FOR THE MARKET?
In general, restricted supply or low new issue volume should help municipal
bond prices appreciate due to scarcity value. However, the talk of tax reform
will likely lead investors to be less willing to purchase municipal bonds.
Limited supply has been the good news in the market; it has helped maintain the
value of outstanding bonds. However, the unknown factor is tax reform.
HOW WOULD YOU DESCRIBE CURRENT SUPPLY?
Current supply is manageable given the decreased demand from individual
investors. However, some states have had, and will continue to have, temporary
supply and demand imbalances.
WHAT WERE THE GREATEST CHALLENGES YOU FACED OVER THE PAST YEAR?
The challenge in 1995 was acquiring bonds with the most attractive
structures, such as coupon rates and call features at the proper valuations. And
since new issues tend to have the most attractive structures, lower new issuance
limited portfolio restructuring.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN 1996?
I believe the market will continue to react to discussions about tax reform
which will likely keep the municipal yield curve somewhat more positively sloped
than in the absence of these discussions.
By nature, the Fund will reflect certain maturity segments of the yield
curve, based on their average maturity characteristics. Therefore, the outlook
for the Fund will go hand-in-hand with the outlook for that maturity segment of
the market. The dominant force in any bond market is the direction of interest
rates. I believe that the trend toward rates being lower year-over-year will
continue. Therefore, it is very important as we go forward to be careful in
managing duration. In addition, credit spreads across the board are narrow and
likely to remain so because supply will remain low in the near-term environment.
- ---------------
*Source: Securities Data Corp.
80
<PAGE> 254
NATIONS FUND TRUST
Nations Municipal Income Fund
- ---------------------------------------------
PORTFOLIO BREAKDOWN AS A % OF TOTAL
INVESTMENTS AS OF 11/30/95 (UNAUDITED)
- ---------------------------------------------
<TABLE>
<S> <C>
Pollution Control Revenue/
Industrial Development Revenue...... 38.7%
Hospital.............................. 14.8%
Insured............................... 19.5%
General Obligation.................... 9.1%
Other................................. 5.5%
Power/Utilities Revenue............... 3.7%
Housing Revenue....................... 8.7%
</TABLE>
TOP TEN HOLDINGS AS A % OF NET
ASSETS AS OF 11/30/95
<TABLE>
<S> <C>
1. Alliance Airport Authority Inc., Texas, Special
Facilities Revenue, (American Airlines Inc.
Project), 7.000% 12/01/11 4.2%
2. Connecticut State, Series B, GO, 5.375% 10/01/11 3.4
3. Butler County, Alabama, Industrial Development
Board, Solid Waste Disposal Revenue, (James River
Corporation Project), 8.000% 09/01/28 2.9
4. White County, Georgia, Industrial Development
Authority Revenue Refunding, (Clark-Schwebel
Fiber Glass Company Project), 6.850% 06/01/10 2.7
5. Washington State, Public Power Supply Systems
Revenue Refunding, Series B, (Systems Nuclear
Project No. 3), (FSA Insured), 5.400% 07/01/05 2.7
6. Illinois Health Facilities Authority Revenue,
(OSF Healthcare System), 6.000% 11/15/10 2.6
7. Michigan State Job Development Authority, PCR,
(General Motors Corporation), 5.550% 04/01/09 2.5
8. Union County, Georgia, Housing Authority,
Multi-family Revenue Refunding, (Hidden Lake
Apartments), (FHA/FNMA Insured), Series A, 7.125%
12/01/25 2.5
9. South Broward, Florida, Hospital District Revenue
Refunding, 5.500% 05/01/28 2.4
10. Savannah, Georgia, Hospital Authority, Revenue
Refunding and Improvement, (Candler Hospital
Project), 7.000% 01/01/23 2.4
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- --------------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 16.16% 21.31%
11/30/95
--------------------------
INCEPTION
(02/01/91) 7.50% 8.47%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
sales charge for sales
of 4.25% charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Municipal
Income Fund on February 1,
1991 (inception). The Lehman
Municipal Bond Index is a
weighted composite which is
comprised of more than
15,000 bonds issued within
the last 5 years.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman
Date Reinvested Municipal Bond Index
<S> <C> <C>
02/01/91 $ 9,575 $10,000
03/91 $ 9,653 $10,090
06/91 $ 9,794 $10,306
09/91 $10,204 $10,707
12/91 $10,613 $11,065
03/92 $10,580 $11,099
06/92 $11,008 $11,519
09/92 $11,260 $11,826
12/92 $11,485 $12,041
03/93 $11,948 $12,488
06/93 $12,422 $12,897
09/93 $12,903 $13,333
12/93 $13,018 $13,520
03/94 $12,153 $12,778
06/94 $12,254 $12,918
09/94 $12,261 $13,007
12/94 $12,026 $12,821
03/95 $12,983 $13,727
06/95 $13,310 $14,058
09/95 $13,703 $14,462
11/95 $14,179 $14,916
</TABLE>
- ---------------
Assumes the deduction of the maximum sales charge of 4.25% and the
reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
Portfolio holdings are subject to change and may not be representative of
current holdings.
81
<PAGE> 255
NATIONS FUND TRUST
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR C SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 19.65%* 20.65%
11/30/95
--------------------------
INCEPTION
(06/17/92) 7.23% 7.23%
THROUGH
11/30/95
--------------------------
*Adjusted for Not
maximum adjusted
contingent for
deferred contingent
sales charge deferred
of 1.00% sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor C
Shares of Nations Municipal
Income Fund on June 17, 1992
(inception). Investor C
Shares that are redeemed
within one year of purchase
are subject to a 1.00%
contingent deferred sales
charge. The Lehman Municipal
Bond Index is a weighted
composite which is comprised
of more than 15,000 bonds
issued within the last 5
years.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/17/92 $10,000 $10,000
06/92 $10,078
09/92 $10,292 $10,266
12/92 $10,482 $10,453
03/93 $10,889 $10,841
06/93 $11,304 $11,196
09/93 $11,723 $11,575
12/93 $11,809 $11,737
03/94 $11,009 $11,093
06/94 $11,085 $11,215
09/94 $11,076 $11,292
12/94 $10,849 $11,130
03/95 $11,696 $11,917
06/95 $11,974 $12,204
09/95 $12,311 $12,555
11/95 $12,727 $12,949
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - INVESTOR N SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------
<TABLE>
<S> <C> <C>
YEAR ENDED 15.65% 20.65%
11/30/95
--------------------------
INCEPTION
(06/07/93) 4.39% 5.51%
THROUGH
11/30/95
--------------------------
Adjusted for Not
maximum adjusted
applicable for
contingent contingent
deferred deferred
sales charge sales
charge
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Investor N
Shares of Nations Municipal
Income Fund on June 7, 1993
(inception). The Lehman
Municipal Bond Index is a
weighted composite which is
comprised of more than
15,000 bonds issued within
the last 5 years.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman
Date Reinvested Municipal Bond Index
<S> <C> <C>
06/07/93 $10,000 $10,000
06/93 $10,146 $10,167
09/93 $10,522 $10,511
12/93 $10,600 $10,658
03/94 $ 9,881 $10,073
06/94 $ 9,949 $10,184
09/94 $ 9,941 $10,254
12/94 $ 9,737 $10,108
03/95 $10,498 $10,622
06/95 $10,747 $11,083
09/95 $11,050 $11,401
11/95 $11,125 $11,759
</TABLE>
- ---------------
Assumes the deduction of maximum applicable contingent deferred sales charge
and the reinvestment of all distributions
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
82
<PAGE> 256
NATIONS FUND TRUST
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON - TRUST A SHARES AS OF 11/30/95
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------
<TABLE>
<S> <C>
YEAR ENDED 21.55%
11/30/95
------------------
INCEPTION
(02/01/91) 8.61%
THROUGH
11/30/95
</TABLE>
The chart to the right shows
the growth in value of a
hypothetical $10,000
investment in Trust A Shares
of Nations Municipal Income
Fund on February 1, 1991
(inception). The Lehman
Municipal Bond Index is a
weighted composite which is
comprised of more than
15,000 bonds issued within
the last 5 years.
<TABLE>
<CAPTION>
Growth of Investment
with Distributions Lehman
Date Reinvested Municipal Bond Index
<S> <C> <C>
02/01/91 $10,000 $10,000
03/91 $10,081 $10,090
06/91 $10,229 $10,306
09/91 $10,657 $10,709
12/91 $11,084 $11,065
03/92 $11,050 $11,099
06/92 $11,500 $11,519
09/92 $11,766 $11,826
12/92 $12,006 $12,041
03/93 $12,484 $12,488
06/93 $12,996 $12,897
09/93 $13,503 $13,333
12/93 $13,629 $13,520
03/94 $12,729 $12,778
06/94 $12,841 $12,918
09/94 $12,855 $13,007
12/94 $12,615 $12,821
03/95 $13,625 $13,727
06/95 $13,975 $14,058
09/95 $14,395 $14,462
11/93 $14,900 $14,916
</TABLE>
- ---------------
Assumes the reinvestment of all distributions.
- --------------------------------------------------------------------------------
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST.
Average annual total returns are historical in nature and measure net investment
income and capital gain or loss from portfolio investments assuming reinvestment
of dividends.
83
<PAGE> 257
NATIONS FUND TRUST
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.9%
FLORIDA -- 94.9%
$1,210,000 Broward County, Florida,
Airport Authority,
Series D, AMT, (AMBAC
Insured),
4.000% 10/01/97........ Aaa AAA $ 1,211,646
750,000 Broward County, Florida,
Gas Tax Revenue,
6.000% 09/01/99........ A1 AA- 796,365
1,000,000 Broward County, Florida,
GO, Series C,
6.200% 01/01/07........ Aa AA 1,083,100
500,000 Broward County, Florida,
School District
Refunding,
6.750% 02/15/97........ A1 AA- 518,245
500,000 Broward County, Florida,
Solid Waste Revenue,
(MBIA Insured),
5.500% 07/01/04........ Aaa AAA 531,600
1,000,000 Clearwater, Florida,
Water and Sewer
Authority Revenue,
(AMBAC Insured),
5.000% 12/01/02........ Aaa AAA 1,035,820
1,000,000 Dade County, Florida,
Aviation Facility
Revenue, Series B, AMT,
6.300% 10/01/05........ Aaa AAA 1,118,930
1,650,000 Dade County, Florida,
School District Revenue
Refunding,
(AMBAC Insured),
5.000% 07/15/01........ Aaa AAA 1,707,090
500,000 Dade County, Florida,
Water and Sewer Systems
Revenue,
5.000% 10/01/13........ Aaa AAA 483,355
1,500,000 Delray Beach, Florida,
Water and Sewer
Authority Revenue,
Series A, Refunding,
(AMBAC Insured),
5.000% 10/01/03........ Aaa AAA 1,545,975
1,565,000 Dunes, Florida, Community
Development District
Revenue, (Intercoastal
Water Way Bridge),
5.300% 10/01/03........ A3 BBB 1,602,153
Florida State Board of
Education, GO, Capital
Outlay, Public
Education, Series A:
1,000,000 Refunding,
5.000% 06/01/08........ Aa AA 1,001,840
1,500,000 Unrefunded Balance,
7.250% 06/01/23........ Aa AA 1,687,725
$1,500,000 Florida State Division
Bond, Financial
Department of General
Service Revenue,
Preservation Authority,
(MBIA Insured),
5.800% 07/01/01........ Aaa AAA $ 1,610,610
Florida State Housing
Finance Agency,
Refunding:
2,000,000 Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/03+....... NR BBB+ 2,117,960
1,000,000 (The Vinyards Project),
Series H,
6.400% 11/01/15........ NR BBB+ 1,005,730
750,000 Florida State Municipal
Power Agency, GO, (St.
Lucie Project), (FGIC
Insured),
5.600% 10/01/07........ Aaa AAA 786,135
525,000 Florida State Sunshine
Skyway Revenue,
6.100% 07/01/00........ A A 564,160
Florida State Turnpike
Authority Revenue,
Department of
Transportation:
1,000,000 7.350% 07/01/98.......... A1 A 1,079,510
500,000 Series A,
(FGIC Insured),
5.500% 07/01/11........ Aaa AAA 510,435
1,000,000 Fort Lauderdale, Florida,
Water and Sewer
Authority Revenue,
5.500% 09/01/01........ NR AAA 1,061,560
1,375,000 Hialeah, Florida, Capital
Improvement Revenue,
5.500% 10/01/18........ Baa1 NR 1,304,710
2,640,000 Hillsborough County,
Florida,
Environmentally
Sensitive Lands,
6.250% 07/01/06........ Aaa AAA 2,894,047
Indian River County,
Florida, School
District:
500,000 (AMBAC Insured),
6.650% 04/01/03........ Aaa AAA 550,125
1,500,000 (FSA Insured),
5.000% 04/01/03........ Aaa AAA 1,546,335
Jacksonville, Florida,
Electric Authority
Revenue Refunding, 4th
Series, St. John's
River Authority:
1,000,000 Series 6B,
6.650% 10/01/02........ Aa1 AA 1,106,830
1,500,000 Series 6C,
6.200% 10/01/97........ Aa1 AA 1,560,735
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 258
NATIONS FUND TRUST
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 750,000 Manatee County, Florida,
Public Utilities
Revenue, Series A,
(MBIA Insured),
6.250% 10/01/00........ Aaa AAA $ 816,608
500,000 Miami Beach, Florida, GO,
(FGIC Insured),
5.300% 09/01/03........ Aaa AAA 525,900
640,000 North Broward, Florida,
Hospital Revenue,
Series A,
(MBIA Insured),
6.000% 01/01/02........ Aaa AAA 691,648
Orange County, Florida,
Health Facilities
Authority Revenue:
3,000,000 (Orlando Regional Medical
Center Hospital),
(MBIA Insured),
4.400% 10/01/02........ Aaa AAA 2,987,580
1,375,000 (Lakeside Alt Inc.),
6.250% 07/01/05........ NR BBB 1,433,781
3,000,000 Orlando and Orange
Counties, Florida,
Expressway Authority
Revenue Refunding,
6.500% 07/01/10........ Aaa AAA 3,451,770
1,300,000 Palm Beach County,
Florida, GO,
7.000% 12/01/04........ Aa AA 1,534,182
1,000,000 Palm Beach County,
Florida, Housing
Finance Authority,
Series A,
6.300% 10/01/12........ Aaa NR 1,029,330
850,000 St. John's County,
Florida, Industrial
Development Authority
Revenue, Hospital
Revenue, (Flagler
Hospital Project),
5.700% 08/01/02........ A BBB+ 874,208
1,230,000 South Broward, Florida,
Hospital District
Revenue Refunding,
(AMBAC Insured),
4.650% 05/01/00........ Aaa AAA 1,249,594
1,000,000 Tallahassee, Florida,
Health Facilities
Revenue, Memorial
Regional Medical
Center, Series A,
(MBIA Insured),
5.750% 12/01/04........ Aaa AAA 1,079,600
1,025,000 Venice, Florida, Health
Facilities Revenue
Refunding, (Venice
Hospital, Inc.
Project),
5.300% 12/01/02........ A NR 1,076,925
-----------
48,773,852
===========
PUERTO RICO -- 3.0%
$ 500,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07........ NR BBB- $ 510,075
1,000,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A
6.600% 05/01/14........ NR BBB 1,027,210
------------
1,537,285
------------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $47,992,986)..... 50,311,137
===========
<CAPTION>
SHARES
- ---------
<S> <C> <C>
MONEY MARKET FUND -- 0.5%
(Cost $236,062)
236,062 AIM Tax-Exempt Fund......... 236,062
===========
TOTAL INVESTMENTS
(Cost $48,229,048*).................... 98.4% 50,547,199
OTHER ASSETS AND LIABILITIES
(NET).................................. 1.6 834,715
------ -----------
NET ASSETS............................... 100.0% $51,381,914
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
November 30, 1995.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
Nations Florida Intermediate Municipal Bond Fund had the
following insurance concentrations greater than 10% at
November 30, 1995 (as a percentage of net assets):
AMBAC 14.2%
MBIA 15.0%
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 259
NATIONS FUND TRUST
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.2%
FLORIDA -- 94.0%
$1,000,000 Alachua County, Florida,
Health Facilities
Authority Revenue
Refunding, (Santa Fe
Healthcare Facilities
Project),
6.000% 11/15/09....... Baa1 BBB+ $ 1,008,910
1,000,000 Broward County, Florida,
School District
Refunding, GO,
5.700% 02/15/08....... A1 AA- 1,071,650
1,250,000 Citrus County, Florida,
PCR Refunding, Crystal
River, (Florida Power
Corporation), Series
B,
6.350% 02/01/22....... A1 A+ 1,324,050
1,475,000 Dade County, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding,
(Baptist Hospital,
Miami Project), Series
A, (MBIA Insured),
5.250% 05/15/21....... Aaa AAA 1,432,623
1,000,000 Dade County, Florida,
School District
Revenue Refunding,
Series A, GO, (MBIA
Insured),
6.125% 06/01/14....... Aaa AAA 1,064,970
1,500,000 Dade County, Florida,
Water and Sewer System
Revenue Refunding,
(FGIC Insured),
5.000% 10/01/13....... Aaa AAA 1,450,065
Escambia County,
Florida, PCR,
(Champion
International
Corporation Project),
AMT:
1,000,000 5.875% 06/01/22......... Baa1 BBB 971,890
1,000,000 6.900% 08/01/22......... Baa1 BBB 1,074,140
Florida State Board of
Education, GO, Capital
Outlay, Public
Education:
1,000,000 Refunding, Series A,
5.000% 06/01/08....... Aa AA 1,001,840
1,000,000 Refunding, Series D,
5.125% 06/01/18....... Aa AA 959,400
1,000,000 Unrefunded Balance,
Series A,
7.250% 06/01/23....... Aa AA 1,125,150
Florida State Housing
Finance Agency,
Refunding:
1,000,000 Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/03+...... NR BBB+ 1,058,980
965,000 Single-family Mortgage,
Series B, AMT,
(GNMA/FNMA Insured),
6.550% 07/01/17....... Aa1 AAA $ 1,003,783
500,000 (The Vinyards Project),
Series H,
6.500% 11/01/25....... NR BBB+ 502,850
1,000,000 Florida State Municipal
Power Agency Revenue,
(Stanton II Project),
Pre-refunded,
(AMBAC Insured),
6.500% 10/01/20....... Aaa AAA 1,142,070
1,000,000 Florida State Turnpike
Authority Revenue,
Department of
Transportation, Series
A, (FGIC Insured),
5.500% 07/01/11....... Aaa AAA 1,020,870
1,000,000 Hillsborough County,
Florida, Industrial
Development Authority,
PCR, (Tampa Electric
Company Project),
8.000% 05/01/22....... Aa3 AA 1,197,680
1,000,000 Hillsborough County,
Florida, Utility
Refunding Revenue,
(MBIA Insured),
5.500% 08/01/12....... Aaa AAA 1,014,370
1,285,000 Jacksonville, Florida,
Electric Authority
Revenue Refunding, St.
John's River
Authority, Issue 2,
Series 9,
5.250% 10/01/21....... Aa1 AA 1,239,151
500,000 Jacksonville, Florida,
Port Authority
Revenue, Port Facility
Refunding, (MBIA
Insured),
7.625% 11/01/06....... Aaa AAA 601,565
1,000,000 Martin County, Florida,
Industrial Development
Authority Revenue,
(Indiantown
Cogeneration Project),
Series A, AMT,
7.875% 12/15/25....... Baa3 BBB- 1,145,990
1,000,000 North Broward, Florida,
Hospital Revenue,
(MBIA Insured),
6.250% 01/01/06....... Aaa AAA 1,091,230
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 260
NATIONS FUND TRUST
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000,000 Orange County, Florida,
Health Facilities
Authority Revenue
Refunding, Hospital,
(Orlando Regional
Medical Center
Hospital), Series B,
(MBIA Insured),
5.000% 10/01/10....... Aaa AAA $ 980,440
1,000,000 Orange County, Florida,
Sales Tax Revenue,
Series B,
5.375% 01/01/24....... A1 A+ 973,810
1,000,000 Orange County, Florida,
Tourist Development
Tax Revenue, Series B,
(MBIA Insured),
6.000% 10/01/14....... Aaa AAA 1,049,490
1,000,000 Osceola County, Florida,
Health Facilities
Authority Revenue
Refunding, Lutheran
Good Samaritan
Society, (AMBAC
Insured),
6.000% 05/01/10....... Aaa AAA 1,067,000
1,500,000 Palm Beach County,
Florida, Health
Facilities Authority
Revenue, (Good
Samaritans Health
System),
6.200% 10/01/06....... NR A+ 1,544,355
1,000,000 Palm Beach County,
Florida, Housing
Finance Authority,
Single-family Mortgage
Purchase Revenue,
Series A,
(GNMA/FNMA Insured),
6.500% 10/01/21....... Aaa NR 1,030,710
St. John's County,
Florida, Industrial
Development Authority,
Hospital Revenue,
(Flagler Hospital
Project):
500,000 5.600% 08/01/01......... A BBB+ 512,925
945,000 6.000% 08/01/08......... A BBB+ 981,770
1,000,000 St. Petersburg, Florida,
Excise Tax Revenue
Refunding,
(FGIC Insured),
5.000% 10/01/16....... Aaa AAA 955,070
500,000 Sarasota County,
Florida, Solid Waste
Systems Revenue
Refunding,
5.625% 10/01/13....... A A 502,770
1,000,000 South Broward, Florida,
Hospital District
Revenue Refunding,
5.500% 05/01/28....... A1 A+ 950,730
Venice, Florida, Health
Facilities Revenue
Refunding, (Venice
Hospital Inc.
Project):
$ 900,000 5.600% 12/01/05......... A NR $ 974,214
1,000,000 5.700% 12/01/06......... A NR 1,089,740
-----------
36,116,251
-----------
GUAM -- 1.6%
695,000 Government of Guam, GO,
Series A,
5.400% 11/15/18....... NR BBB 629,740
-----------
PUERTO RICO -- 2.6%
1,000,000 Puerto Rico, Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage -- Portfolio
I), AMT, (GNMA/FNMA/
FHLMC Collateral),
6.250% 04/01/29....... Aaa AAA 1,018,600
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $36,023,737).... 37,764,591
==========
<CAPTION>
SHARES
- ---------
<S> <C> <C>
MONEY MARKET FUND -- 0.3%
(Cost $112,836)
112,836 AIM Tax-Exempt Fund............. 112,836
==========
TOTAL INVESTMENTS
(Cost $36,136,573*)........................ 98.5% 37,877,427
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.5 565,618
---- -----------
NET ASSETS................................... 100.0% $38,443,045
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
November 30, 1995.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
Nations Florida Municipal Bond Fund had the following
insurance concentration greater than 10% at November 30,
1995 (as a percentage of net assets):
MBIA 18.8%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 261
NATIONS FUND TRUST
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.8%
GEORGIA -- 95.1%
$ 500,000 Alpharetta, Georgia, GO,
Series 1992,
6.100% 05/01/04....... Aa AA- $ 552,580
1,000,000 Atlanta, Georgia,
Downtown Development
Authority Revenue
Refunding,
(Underground Atlanta
Project),
6.250% 10/01/12....... Aa AA 1,057,580
1,000,000 Atlanta, Georgia, Water
and Sewer Authority
Revenue Refunding,
5.000% 01/01/15....... Aa AA- 951,530
Atlanta and Fulton
Counties, Georgia,
Recreation Authority
Revenue Refunding,
(Atlanta Zoo Project):
1,000,000 5.850% 12/01/00......... Aa AA 1,066,790
500,000 6.050% 12/01/02......... Aa AA 544,235
1,000,000 Burke County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation), Series
B, 4.350% 01/01/01.... NR A+ 1,002,590
560,000 Cartersville, Georgia,
School District, GO,
6.150% 01/01/03....... A A 609,134
1,000,000 Cherokee County,
Georgia, School System
Revenue, GO, (AMBAC
Insured),
5.875% 02/01/09....... Aaa AAA 1,074,580
1,000,000 Clarke County, Georgia,
School District
Refunding, GO,
(FGIC Insured),
5.100% 07/01/04....... Aaa AAA 1,031,520
Clayton County, Georgia,
Water and Sewer
Authority Revenue:
585,000 6.400% 05/01/04......... A1 A+ 645,811
1,000,000 (MBIA Insured),
5.400% 05/01/07....... Aaa AAA 1,030,470
1,000,000 Cobb County, Georgia,
Detention Buildings
and Facilities, GO,
5.300% 01/01/08....... Aaa AA+ 1,026,050
1,000,000 Cobb County, Georgia,
Kennestone Hospital
Authority Revenue,
Series A,
5.700% 04/01/06....... Aa AA 1,056,240
685,000 Cobb County, Georgia,
Water and Sewer
Authority Revenue
Refunding, Series A,
4.400% 07/01/99....... Aa AA- 690,631
$ 750,000 Columbus, Georgia, Water
and Sewer Authority
Revenue Refunding,
Series 1992,
(FGIC Insured),
6.000% 05/01/03....... Aaa AAA $ 815,340
1,000,000 Dalton, Georgia,
Building Authority
Revenue,
5.000% 07/01/02....... A1 NR 1,021,330
DeKalb County, Georgia,
School District, GO:
1,000,000 6.650% 07/01/99......... NR AA 1,059,870
1,435,000 5.000% 07/01/03......... Aa AA 1,475,984
1,000,000 Series A,
4.250% 07/01/99....... Aa AA 1,003,270
Fayette County, Georgia,
School District, GO,
Series 1992:
1,000,000 5.200% 03/01/00......... Aa A+ 1,035,750
500,000 (FGIC Insured),
6.000% 09/01/02....... Aaa AAA 543,220
750,000 Forsyth County, Georgia,
School District, GO,
6.400% 07/01/05....... A1 A+ 829,155
Fulco, Georgia, Hospital
Authority Revenue,
Revenue Anticipation
Certificates:
1,000,000 Georgia Baptist
Healthcare, Series A,
6.000% 09/01/03....... Baa1 NR 1,038,140
1,000,000 St. Joseph's Hospital,
4.900% 10/01/03....... A A 1,002,770
1,000,000 Fulton and DeKalb
Counties, Georgia,
Hospital Authority
Revenue Refunding,
(MBIA Insured),
5.250% 01/01/04....... Aaa AAA 1,028,470
1,000,000 Fulton County, Georgia,
Building Authority
Revenue, (County
Government and Health
Facilities Project),
Series A,
5.700% 01/01/04....... Aa AA 1,066,580
1,300,000 Fulton County, Georgia,
Water and Sewer
Authority Revenue
Refunding,
(FGIC Insured),
5.100% 01/01/98....... Aaa AAA 1,328,301
755,000 Georgia State
Environmental
Facilities Authority
Revenue, Water and
Wastewater Loan
Program,
6.100% 07/01/01....... Aaa AA+ 811,867
Georgia State, GO:
1,500,000 Series A,
6.250% 03/01/06....... Aaa AA+ 1,686,015
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 262
NATIONS FUND TRUST
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
Georgia State, GO -- (continued):
$2,250,000 Series C,
6.500% 07/01/05....... Aaa AA+ $ 2,568,892
1,000,000 Series D,
6.800% 08/01/99....... Aaa AA+ 1,092,820
Georgia State Housing
and Finance Authority
Revenue,
(Homeownership
Opportunity Program),
(FHA/VA/Private
Mortgages Insured):
750,000 Program-A-1,
6.700% 12/01/12....... Aa NR 796,875
1,250,000 Series B,
6.600% 06/01/25....... Aa AA+ 1,284,387
1,500,000 Georgia State Municipal
Gas Authority, Gas Tax
Revenue, (Southern
Storage Gas Project),
6.000% 07/01/04....... NR A- 1,620,990
2,000,000 Georgia State Tollway
Authority Revenue,
(Georgia 400 Project),
6.375% 07/01/02....... Aaa AA+ 2,220,020
Gwinnett County,
Georgia, School
District, GO:
500,000 Series A,
6.000% 02/01/02....... Aa1 AA 541,375
1,000,000 Series B, Refunding,
6.000% 02/01/01....... Aa1 AA 1,075,580
Hall County, Georgia,
School District, GO:
1,000,000 (AMBAC Insured),
6.700% 12/01/14....... Aaa AAA 1,120,890
750,000 Series B, Refunding,
6.000% 12/01/03....... A NR 809,220
Macon, Georgia, Water
and Sewer Authority
Revenue:
500,000 4.900% 10/01/98......... A1 A+ 510,445
1,000,000 Series A, Refunding,
4.700% 10/01/04....... A1 A+ 992,100
Metropolitan Atlanta
Rapid Transit
Authority (MARTA),
Georgia Sales Tax
Revenue Refunding:
1,000,000 Series M,
6.150% 07/01/02....... A1 AA- 1,085,980
Series P,
(AMBAC Insured):
500,000 5.800% 07/01/02......... Aaa AAA 537,260
1,000,000 5.900% 07/01/03......... Aaa AAA 1,082,410
Monroe County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation):
500,000 6.050% 01/01/02......... A3 A+ 537,535
1,000,000 6.800% 01/01/12......... A3 A+ 1,144,500
$ 500,000 Municipal Electric
Authority of Georgia,
Special Obligation
Bonds, First
Crossover, General
Resolution,
6.500% 01/01/12....... A A $ 552,330
1,100,000 Paulding County,
Georgia, School
District, GO, Series
A,
6.400% 02/01/04....... A A 1,209,901
Private Colleges and
Universities
Facilities Authority
Revenue, Georgia:
1,400,000 (Emory University
Project), Series C,
5.750% 10/01/02....... Aa1 AA 1,500,212
1,000,000 (Spellman College
Project),
(FGIC Insured),
4.850% 06/01/98....... Aaa AAA 1,018,380
1,000,000 Richmond County,
Georgia, Board of
Education, GO,
(FGIC Insured),
4.700% 11/01/06....... Aaa AAA 981,550
500,000 Roswell, Georgia, GO,
5.600% 02/01/10....... Aa AA 518,545
1,250,000 Savannah, Georgia,
Hospital Authority
Revenue Refunding and
Improvement, (Candler
Hospital Project),
7.000% 01/01/11....... Baa BBB+ 1,299,225
750,000 Savannah, Georgia,
Resource Recovery
Development Authority,
Revenue Refunding,
(Savannah Energy
Systems Company
Project),
5.850% 12/01/01....... A1 A+ 791,610
1,200,000 Savannah, Georgia, Water
and Sewer Revenue,
Refunding and
Improvement,
5.100% 12/01/10....... A1 AA- 1,188,840
630,000 Spalding County,
Georgia, Water and
Sewer Authority
Revenue, (MBIA
Insured),
6.000% 09/01/03....... Aaa AAA 686,064
500,000 Warner Robbins, Georgia,
Water and Sewer
Authority, Revenue
Refunding,
(MBIA Insured),
6.000% 07/01/02....... Aaa AAA 542,315
----------
57,396,054
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 263
NATIONS FUND TRUST
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 2.7%
$1,000,000 Commonwealth of Puerto
Rico, Public
Improvement, Series A,
GO, Pre-refunded,
7.750% 07/01/17....... NR AAA $ 1,134,210
500,000 Puerto Rico Industrial,
Medical and
Environmental Agency
Pollution Control
Facilities Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07....... NR BBB- 510,075
----------
1,644,285
----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $56,349,939).... 59,040,339
==========
MONEY MARKET FUND -- 0.3%
(Cost $151,495)
151,495 AIM Tax-Exempt Fund............. 151,495
==========
TOTAL INVESTMENTS
(Cost $56,501,434*)........................ 98.1% 59,191,834
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.9 1,133,104
===== ===========
NET ASSETS................................... 100.0% $60,324,938
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 264
NATIONS FUND TRUST
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.8%
GEORGIA -- 93.5%
$ 500,000 Appling County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation Plant --
Hatch Project),
5.250% 01/01/13....... A3 A+ $ 480,885
465,000 Atlanta, Georgia, Urban
Residential Finance
Authority, Dormitory
Facilities Revenue,
(Morehouse College),
5.350% 12/01/05....... Aaa AAA 484,377
500,000 Atlanta, Georgia, Water
and Sewer Authority
Revenue Refunding,
5.000% 01/01/15......... Aa AA- 475,765
250,000 Cherokee County,
Georgia, School
Systems Revenue, GO,
(AMBAC Insured),
5.375% 02/01/14....... Aaa AAA 250,270
500,000 Columbia County,
Georgia, School
District, Series B,
(MBIA Insured),
6.250% 04/01/13......... Aaa AAA 539,040
500,000 Columbus, Georgia, Water
and Sewer Authority
Revenue Refunding,
5.700% 05/01/20....... A A+ 503,740
850,000 Coweta County, Georgia,
Development Authority,
Industrial Development
Revenue, (Sivaco
National Wire
Project), AMT,
5.400% 02/01/09....... A NR 842,826
225,000 Douglasville-Douglas
County, Georgia, Water
and Sewer Authority
Revenue Refunding,
(AMBAC Insured),
5.625% 06/01/15....... Aaa AAA 235,784
250,000 Ellijay-Gilmer County,
Georgia, Water and
Sewer Authority
Revenue Refunding and
Improvement,
5.900% 01/01/24....... NR BBB- 247,280
500,000 Fayette County, Georgia,
School District, GO,
6.125% 03/01/15....... Aa A+ 531,850
495,000 Fulco, Georgia, Hospital
Authority Revenue,
Revenue Anticipation
Certificates, St.
Joseph's Hospital,
5.500% 10/01/14....... A A 465,127
Georgia State, GO:
750,000 Series C,
6.500% 07/01/05....... Aaa AA+ 856,298
500,000 Series E,
5.500% 07/01/07....... Aaa AA+ 531,265
Georgia State Housing
and Finance Authority
Revenue, (FHA/VA/
Private Mortgages
Insured):
$ 215,000 (Homeownership
Opportunity Program),
Program-A-1,
6.700% 12/01/12....... Aa NR $ 228,437
250,000 Single-family Mortgage,
Refunding, Series B,
5.650% 12/01/14......... Aa AA+ 250,187
500,000 Gwinnet County, Georgia,
School District, GO,
Series A,
5.125% 02/01/10....... Aa1 AA 496,730
500,000 Gwinnet County, Georgia,
Water and Sewer
Revenue Refunding,
4.900% 08/01/06....... Aa1 AA+ 502,445
500,000 Macon, Georgia, Water
and Sewer Authority
Revenue, Series B,
5.000% 10/01/16....... A1 A+ 469,775
1,000,000 Municipal Electric
Authority of Georgia,
Special Obligation
Bonds, First
Crossover, General
Resolution,
6.500% 01/01/12....... A A 1,104,660
500,000 Peach County, Georgia,
School District, GO,
(MBIA Insured),
6.500% 02/01/08....... Aaa AAA 568,205
500,000 Putnam County, Georgia,
Development Authority,
PCR, (Georgia Power
Company Plant --
Branch Project),
6.000% 03/01/18....... A1 A+ 503,670
500,000 Roswell, Georgia, GO,
5.600% 02/01/10....... Aa AA 518,545
Savannah, Georgia,
Hospital Authority
Revenue Refunding and
Improvement:
495,000 (Candler Hospital
Project),
7.000% 01/01/23....... Baa BBB+ 511,399
(St. Joseph's Hospital
Project):
450,000 6.125% 07/01/12......... A NR 465,966
1,000,000 6.200% 07/01/23......... A NR 1,007,110
500,000 Savannah, Georgia, Water
and Sewer Revenue
Refunding and
Improvement,
5.100% 12/01/10....... A1 AA- 495,350
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 265
NATIONS FUND TRUST
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 500,000 Union City, Georgia,
Housing Authority,
Multi-family Housing
Revenue Refunding,
(Hidden Lake
Apartments), Series A,
(FHA/FNMA Insured),
7.125% 12/01/25....... Aaa NR $ 535,255
570,000 White County, Georgia,
Industrial Development
Authority Revenue
Refunding, (Clark-
Schwebel Fiber and
Glass Company
Project),
6.850% 06/01/10....... NR BBB+ 601,128
-----------
14,703,369
-----------
PUERTO RICO -- 3.3%
500,000 Puerto Rico Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable
Housing Mortgage --
Portfolio I), AMT,
(GNMA/FNMA/FHLMC
Collateral),
6.100% 10/01/15....... Aaa AAA 509,790
------------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $14,692,014).... 15,213,159
============
MONEY MARKET FUND -- 0.6%
(Cost $93,000)
93,000 AIM Tax-Exempt Fund............. $ 93,000
============
TOTAL INVESTMENTS
(Cost $14,785,014*)........................ 97.4% 15,306,159
OTHER ASSETS AND LIABILITIES
(NET)...................................... 2.6 414,857
---- -----------
NET ASSETS................................... 100.0% $15,721,016
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 266
NATIONS FUND TRUST
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.4%
MARYLAND -- 94.1%
Anne Arundel County,
Maryland, Consolidated
Public Improvement
Revenue, GO:
$1,500,000 5.500% 07/15/00.......... Aa1 AA+ $ 1,584,345
1,000,000 6.200% 04/15/03.......... Aa1 AA+ 1,098,570
1,000,000 5.125% 07/15/08.......... Aa AA+ 1,013,980
1,000,000 Baltimore, Maryland,
Baltimore City Parking
Facilities Revenue
Refunding,
(FGIC Insured),
4.350% 07/01/02........ Aaa AAA 988,690
800,000 Baltimore, Maryland, GO,
Series A,
(MBIA Insured),
9.000% 10/15/98........ Aaa AAA 907,088
1,750,000 Baltimore, Maryland,
Port Facilities
Revenue, Consolidated
Coal Sales, Series 85,
6.500% 12/01/10........ Aa2 AA- 1,919,942
1,000,000 Baltimore, Maryland,
Wastewater Systems, GO,
(MBIA Insured),
5.100% 07/01/04........ Aaa AAA 1,031,520
Baltimore County,
Maryland, Consolidated
Public Improvement
Revenue Refunding:
1,000,000 5.900% 03/01/98.......... Aaa AA+ 1,040,470
1,000,000 6.100% 07/01/01.......... Aaa AA+ 1,091,090
1,000,000 Series A,
(AMBAC Insured),
5.300% 10/15/06........ Aaa AAA 1,025,160
1,075,000 Series C, (FGIC Insured),
6.375% 10/15/07........ Aaa AAA 1,222,651
Baltimore County,
Maryland, Metropolitan
District Special
Assignment Refunding,
GO:
1,375,000 5.750% 05/01/02.......... Aaa AA+ 1,478,579
1,000,000 5.800% 05/01/03.......... Aaa AA+ 1,081,850
Calvert County, Maryland,
Consolidated Public
Improvement Revenue
Refunding, GO:
1,740,000 4.400% 07/15/02.......... Aa A+ 1,728,081
2,000,000 4.625% 07/15/05.......... Aa A+ 1,969,380
Carroll County, Maryland,
Consolidated Public
Improvement Revenue,
GO:
1,350,000 6.000% 11/01/00.......... Aa AA 1,453,828
500,000 6.900% 10/01/02.......... Aaa AA 563,150
Cecil County, Maryland,
Revenue Refunding,
Consolidated Public
Improvement, GO, (FGIC
Insured):
$1,000,000 5.300% 12/01/00.......... Aaa AAA $ 1,046,870
2,000,000 4.800% 12/01/04.......... Aaa AAA 2,021,860
Charles County, Maryland,
Consolidated Public
Improvement Revenue
Refunding, GO:
3,400,000 4.400% 06/01/03.......... Aa AA- 3,359,370
750,000 6.450% 06/01/04.......... Aaa AA- 838,177
1,000,000 6.375% 12/01/04.......... Aaa AA- 1,098,250
2,000,000 Frederick County,
Maryland, Consolidated
Public Improvement
Revenue Refunding, GO,
(FGIC Insured),
5.750% 12/01/01........ Aaa AAA 2,141,080
1,000,000 Frederick County,
Maryland, GO, Series B,
6.300% 07/01/06.......... Aa AA- 1,109,220
Harford County, Maryland,
GO:
500,000 6.000% 12/01/03.......... Aaa AAA 547,165
600,000 6.100% 12/01/04.......... Aaa AAA 659,274
1,455,000 Harford County, Maryland,
Public Improvement
Revenue, GO,
5.300% 09/01/03........ Aa AA- 1,527,459
1,000,000 Howard County, Maryland,
Metropolitan District,
GO, Series B,
6.000% 08/15/03........ Aa1 AA+ 1,094,670
605,000 Laurel, Maryland, GO,
Series A,
(MBIA Insured),
6.300% 07/01/00........ Aaa AAA 657,472
500,000 Maryland-National Capital
Park and Planning
Commission, (Prince
Georges County), Series
J-2,
6.900% 07/01/02........ Aa AA 558,905
700,000 Maryland State, Community
Development
Administration Revenue,
(Single-family Housing
Project), 1st Series,
(FHA/VA/Private
Mortgages Insured),
6.000% 04/01/97........ Aa NR 713,965
1,000,000 Maryland State, GO,
Third Series,
6.800% 07/15/04........ Aaa AAA 1,124,620
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 267
NATIONS FUND TRUST
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
Maryland State, Health
and Higher Education
Facilities Authority
Revenue:
Howard County General
Hospital:
$1,000,000 5.125% 07/01/03.......... Baa1 BBB $ 998,400
1,000,000 5.500% 07/01/13.......... Baa1 BBB 942,970
500,000 Sinai Hospital,
(AMBAC Insured),
7.300% 07/01/05........ Aaa AAA 571,160
The Johns Hopkins
Hospital:
700,000 7.000% 07/01/00.......... Aa AA- 757,442
1,500,000 5.500% 07/01/07.......... Aa AA- 1,557,660
1,000,000 University of Maryland
Medical Center,
(FGIC Insured),
5.200% 07/01/04........ Aaa AAA 1,027,830
Maryland State,
Transportation
Authority Revenue, GO:
1,000,000 6.500% 07/15/01.......... Aaa AAA 1,071,620
1,250,000 6.100% 09/01/01.......... Aa AA 1,350,000
3,235,000 4.375% 12/15/03.......... Aa AA 3,189,678
Maryland State,
Transportation
Authority, Special
Obligation Revenue:
2,000,000 6.000% 07/01/97.......... A1 A+ 2,063,600
3,420,000 (Baltimore-Washington
International Airport
Project), Series A,
AMT, (FGIC Insured),
6.400% 07/01/19........ Aaa AAA 3,602,560
1,005,000 Maryland Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series A,
6.650% 09/01/98........ Aa AA 1,074,506
Montgomery County,
Maryland, Consolidated
Public Improvement
Revenue, GO, Series A:
1,000,000 6.900% 04/01/00.......... Aaa AAA 1,108,030
500,000 6.700% 04/01/06.......... Aaa AAA 563,330
1,000,000 4.900% 10/01/07.......... Aaa AAA 1,003,890
1,575,000 Montgomery County,
Maryland, Parking
Revenue, Bethesda
Parking Lot District,
Series A,
(FGIC Insured),
5.700% 06/01/00........ Aaa AAA 1,664,397
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,000,000 Montgomery County,
Maryland, Rockville,
GO,
6.125% 10/01/07........ Aaa AAA $ 1,106,110
Northeast Maryland, Solid
Waste Disposal
Authority Revenue
Refunding, (Southwest
Resource Recovery
Facility Project),
(MBIA Insured):
2,000,000 6.900% 01/01/00.......... Aaa AAA 2,187,380
1,535,000 7.000% 01/01/01.......... Aaa AAA 1,706,168
630,000 Ocean City, Maryland, GO,
(MBIA Insured),
6.100% 11/01/04........ Aaa AAA 696,736
Prince Georges County,
Maryland, Consolidated
Public Improvement
Revenue, GO:
1,000,000 6.500% 07/01/02.......... A1 AA- 1,109,250
1,000,000 5.600% 01/15/03.......... A1 AA- 1,056,380
1,000,000 (MBIA Insured),
5.375% 01/01/09........ Aaa AAA 1,021,320
1,000,000 Prince Georges County,
Maryland, GO, Series A,
(MBIA Insured),
5.400% 03/01/02........ Aaa AAA 1,051,290
Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority Revenue
Refunding,
(FSA Insured):
800,000 6.600% 06/30/00.......... Aaa AAA 877,512
2,000,000 5.100% 06/15/05.......... Aaa AAA 2,042,380
820,000 Rockville, Maryland,
General Improvement
Refunding, Series B,
6.350% 03/15/97........ Aa1 AA+ 848,159
1,000,000 Rockville, Maryland, GO,
4.750% 04/15/05........ Aa1 AA+ 1,001,180
1,000,000 St. Mary's County,
Maryland, GO,
(MBIA Insured),
5.700% 03/01/08........ Aaa AAA 1,055,190
University of Maryland,
Auxilliary Facilities
and Tuition Revenue:
Series A:
745,000 6.000% 02/01/04.......... Aa AA+ 804,227
1,000,000 6.300% 02/01/08.......... Aa AA+ 1,084,000
1,000,000 6.300% 02/01/10.......... Aa AA+ 1,077,790
1,000,000 Series C,
4.900% 10/01/08........ Aa AA+ 987,560
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 268
NATIONS FUND TRUST
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,000,000 Washington County,
Maryland, Consolidated
Public Improvement
Revenue, GO,
(FGIC Insured),
5.250% 01/01/06........ Aaa AAA $ 1,031,290
Washington County,
Maryland, GO:
500,000 6.400% 12/01/00.......... A1 A+ 538,085
1,000,000 Series F,
(FGIC Insured),
5.250% 01/01/06........ Aaa AAA 1,031,290
1,000,000 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply Revenue,
GO,
5.000% 06/01/03........ Aa1 AA 1,029,610
-----------
85,586,711
-----------
DISTRICT OF COLUMBIA -- 3.3%
3,000,000 Washington, D.C.,
Metropolitan Area
Transportation
Authority Revenue
Refunding, (FGIC
Insured),
4.400% 01/01/00........ Aaa AAA 3,011,040
-----------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $85,073,939)..... 88,597,751
==========
SHORT-TERM MUNICIPAL BOND -- 0.1%
(Cost $100,000)
OREGON -- 0.1%
100,000 Port St. Helens, Oregon,
PCR, (Portland General
Electric Company
Project),
3.750% 04/01/10+....... VMIG1 A-1+ 100,000
==========
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 0.9%
(Cost $810,000)
810,000 AIM Tax-Exempt Fund............. $ 810,000
==========
TOTAL INVESTMENTS
(Cost $85,983,939*)....................... 98.4% 89,507,751
OTHER ASSETS AND LIABILITIES
(NET)..................................... 1.6 1,453,328
---- -----------
NET ASSETS.................................. 100.0% $90,961,079
===== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes payable upon not more than one business day's
notice. The interest rate shown reflects the rate in effect at November 30,
1995.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FSA Financial Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
Nations Maryland Intermediate Municipal Bond Fund had the
following insurance concentration greater than 10% at
November 30, 1995 (as a percentage of net assets):
MBIA 11.3%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 269
NATIONS FUND TRUST
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 91.1%
MARYLAND -- 73.0%
Anne Arundel County,
Maryland, Consolidated
Public Improvement
Revenue, GO:
$500,000 5.300% 04/01/10........... AA1 AA+ $ 508,925
500,000 5.250% 07/15/11........... AA AA+ 504,105
Baltimore, Maryland,
Consolidated Public
GO: Improvement Revenue,
75,000 7.500% 10/15/11........... A1 A 91,551
150,000 AMT, Series B,
(FGIC Insured),
6.300% 10/15/08......... Aaa AAA 161,307
250,000 Baltimore, Maryland,
Convention Center
Revenue, (FGIC Insured),
6.150% 09/01/19......... Aaa AAA 261,850
250,000.. Baltimore, Maryland, Port
Facilities Revenue,
Consolidated Coal Sales,
Series 85,
6.500% 12/01/10......... Aa2 AA- 274,277
Baltimore County,
Maryland, Mortgage
Revenue Refunding,
(Kingswood Common
III-A),
(FHA Insured):
300,000 5.750% 11/01/20........... NR AAA 294,531
300,000 5.850% 09/01/28........... NR AAA 295,665
260,000 Cecil County, Maryland,
Revenue Refunding,
Consolidated Public
Improvement, GO,
(FGIC Insured),
4.800% 12/01/04......... Aaa AAA 262,842
250,000 Cumberland, Maryland,
Refunding, GO, Series A,
(FGIC Insured),
5.250% 05/01/21......... Aaa AAA 249,292
400,000 Howard County, Maryland,
Special Facilities
Revenue, Series A,
6.000% 02/15/21......... Aa AA+ 414,552
Maryland State, Health and
Higher Education
Facilities Authority
Revenue:
100,000 Anne Arundel Medical
Center,
(AMBAC Insured),
5.250% 07/01/13......... Aaa AAA 99,202
Frederick Memorial
Hospital, (FGIC
Insured):
110,000 5.250% 07/01/13........... Aaa AAA 108,627
100,000 5.000% 07/01/23........... Aaa AAA 93,883
200,000 Greater Baltimore Medical
Center, (FGIC Insured),
5.000% 07/01/13......... Aaa AAA 191,856
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
Maryland State, Health and Higher Education
Facilities Authority Revenue: -- (continued):
$290,000 Memorial Hospital of
Cumberland,
6.500% 07/01/10......... A A $ 304,358
Project and Refunding:
150,000 Doctors Community
Hospital,
5.750% 07/01/13......... Baa BBB- 139,638
100,000 Mercy Medical Center
Issue, (AMBAC Insured),
5.750% 07/01/15......... Aaa AAA 101,169
200,000 Peninsula Regional Medical
Center,
5.000% 07/01/08......... A A 196,366
175,000 University of Maryland
Medical Center,
(FGIC Insured),
5.375% 07/01/13......... Aaa AAA 175,186
Refunding:
100,000 Francis Scott Key Medical
Center, (FGIC Insured),
5.000% 07/01/23......... Aaa AAA 93,883
175,000 Suburban Hospital,
5.125% 07/01/21......... A1 A 158,478
300,000 The Johns Hopkins
Hospital,
5.600% 07/01/09......... Aa AA- 306,501
300,000 Maryland State, Industrial
Development Financing
Authority, Economic
Development Revenue,
Holy Cross Health System
Corporation,
(AMBAC Insured),
5.500% 12/01/15......... Aa AA- 295,353
500,000 Maryland State, Stadium
Authority, Lease
Revenue, (Ocean City
Convention Center),
5.375% 12/15/13......... Aa AA 503,090
100,000 Maryland State, Third
Series, Pre-refunded,
GO,
6.800% 07/15/04......... Aaa AAA 112,462
Maryland State,
Transportation Authority
Revenue, (Transportation
Facilities Project):
300,000 5.750% 07/01/15........... A1 A+ 302,763
500,000 6.800% 07/01/16........... Aaa AAA 578,115
Maryland Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series A:
250,000 5.400% 09/01/10........... Aa AA 252,978
200,000 6.550% 09/01/14........... Aa AA 219,718
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 270
NATIONS FUND TRUST
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
Montgomery County,
Maryland, Housing
Opportunities
Commission,
Single-family Mortgage
Revenue, Series A:
$100,000 4.900% 07/01/06........... Aa NR $ 100,987
250,000 6.000% 07/01/14........... Aa NR 254,097
300,000 Northeast, Maryland, Solid
Waste Disposal Authority
Revenue, (Montgomery
County Project), AMT,
Series A,
6.300% 07/01/16......... A NR 309,114
500,000 Prince Georges County,
Maryland, PCR Refunding,
(Potomac Electric
Project),
5.750% 03/15/10......... A1 A 523,840
175,000 Prince Georges County,
Maryland, Project and
Refunding Revenue,
(Dimensions Health
Corporation), GO,
5.375% 07/01/14......... A NR 165,837
500,000 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority Revenue
Refunding,
(FSA Insured),
5.200% 06/15/06......... Aaa AAA 510,930
200,000 Washington County,
Maryland, Consolidated
Public Improvement
Revenue, GO,
(MBIA Insured),
5.800% 01/01/15......... Aaa AAA 208,462
320,000 Washington County,
Maryland, Sanitation
District Refunding, GO,
Series F, (FGIC
Insured),
5.000% 01/01/04......... Aaa AAA 326,384
-----------
9,952,174
-----------
DISTRICT OF COLUMBIA -- 3.3%
Washington, D.C.,
Metropolitan Area
Transportation Authority
Revenue Refunding, (FGIC
Insured):
100,000 4.900% 01/01/05........... Aaa AAA 100,725
325,000 6.000% 07/01/10........... Aaa AAA 353,421
-----------
454,146
-----------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GUAM -- 2.2%
$100,000 Government of Guam, GO,
Series A,
5.400% 11/15/18......... NR BBB $ 90,610
200,000 Guam Power Authority
Revenue, Series A,
6.300% 10/01/22......... NR BBB 202,136
-----------
292,746
-----------
PUERTO RICO -- 12.6%
700,000 Commonwealth of Puerto
Rico Highway and
Transportation
Authority, Highway
Revenue, Series T,
6.500% 07/01/22......... NR AAA 794,122
200,000 Puerto Rico Electric Power
Authority Revenue
Refunding, Series U,
6.000% 07/01/14......... Baa1 A- 204,548
250,000 Puerto Rico Housing, Bank
and Finance Agency
Revenue, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage -- Portfolio
I), AMT, (GNMA/FNMA/
FHLMC Collateral),
6.100% 10/01/15......... Aaa AAA 254,895
250,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07......... NR BBB- 255,038
200,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.600% 05/01/14......... NR BBB 205,442
-----------
1,714,045
-----------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $11,915,679)...... 12,413,111
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 271
NATIONS FUND TRUST
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUNDS -- 7.3%
679,364 AIM Tax-Exempt Fund....... $ 679,364
321,551 Nuveen Tax-Free Money
Market Fund............. 321,551
-----------
TOTAL MONEY
MARKET FUNDS
(Cost $1,000,915)....... 1,000,915
==========
TOTAL INVESTMENTS
(Cost $12,916,594*)....................... 98.4% 13,414,026
OTHER ASSETS AND LIABILITIES
(NET)..................................... 1.6 216,460
---- -----------
NET ASSETS.................................. 100.0% $13,630,486
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 272
NATIONS FUND TRUST
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.9%
NORTH CAROLINA -- 86.1%
$1,000,000 Buncombe County, North
Carolina, GO,
5.000% 03/01/02....... Aa AA- $ 1,032,970
500,000 Charlotte, North
Carolina, Certificates
of Participation,
(Convention Facilities
Project),
6.750% 12/01/21....... Aaa AAA 572,525
1,130,000 Charlotte, North
Carolina, Health Care
Systems Revenue,
Refunding, Mecklenburg
Hospital Authority,
6.250% 01/01/20....... Aa AA 1,176,432
340,000 Charlotte, North
Carolina, Public
Improvement, GO,
5.300% 04/01/05....... Aaa AAA 357,877
1,000,000 Charlotte, North
Carolina, Refunding
GO,
4.500% 02/01/03....... Aaa AAA 1,006,040
1,000,000 Cleveland County, North
Carolina, GO, (FGIC
Insured),
5.100% 06/01/05....... Aaa AAA 1,028,060
500,000 Concord, North Carolina,
GO,
6.200% 06/01/05....... Aa A+ 547,740
1,000,000 Fayetteville, North
Carolina, Public Works
Commission Revenue
Refunding, (FGIC
Insured),
4.500% 03/01/04....... Aaa AAA 989,750
500,000 Gastonia, North
Carolina, Water
Revenue and Street
Improvement,
5.200% 04/01/02....... Aaa AAA 521,035
1,185,000 Greensboro, North
Carolina, Enterprise
System Revenue, Series
A,
6.500% 06/01/04....... A1 AA- 1,337,521
2,000,000 Greenville, North
Carolina, Combined
Enterprises Revenue,
6.000% 09/01/10....... A1 A+ 2,088,080
500,000 Henderson County, North
Carolina, School and
Community College, GO,
6.500% 06/01/08....... A1 A+ 544,830
750,000 Lower Cape Fear, North
Carolina, Water and
Sewer Authority
Revenue,
5.200% 03/01/04....... A BBB 763,027
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 Martin County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority
Revenue,
8.500% 06/15/99....... A2 A $ 1,134,480
1,000,000 Mecklenburg County,
North Carolina,
Industrial Facilities
and Pollution Control
Finance Authority
Revenue Refunding,
(Fluor Corporation
Project),
5.250% 12/01/09....... NR A+ 990,230
1,000,000 Mecklenburg County,
North Carolina,
Pre-Refunded, Public
Improvement, Series B,
6.200% 04/01/06....... Aaa AAA 1,106,620
North Carolina Eastern
Municipal Power
Agency:
2,000,000 Series A,
7.750% 01/01/12....... Aaa BBB+ 2,249,140
800,000 Series C, (AMBAC
Insured),
5.250% 01/01/04....... Aaa AAA 822,776
North Carolina Housing
Finance Agency,
Single-family Housing,
Series R:
880,000 6.350% 03/01/03......... Aa A+ 937,130
885,000 6.350% 09/01/03......... Aa A+ 937,020
North Carolina Municipal
Power Agency,
Refunding #1, Catawba
Electric Revenue
Refunding:
1,000,000 (FGIC Insured),
5.200% 01/01/00....... Aaa AAA 1,033,360
1,000,000 (FSA Insured),
5.500% 01/01/01....... Aaa AAA 1,048,670
1,000,000 North Carolina State,
Educational Authority
Revenue,
5.300% 07/01/03....... A NR 1,016,180
2,000,000 North Carolina State,
GO, Series A,
6.100% 03/01/01....... Aaa AAA 2,177,300
1,240,000 Pitt County, North
Carolina, Revenue,
5.375% 12/01/10....... Aa AA- 1,252,574
750,000 Rutherford County, North
Carolina, GO, (MBIA
Insured),
6.400% 06/01/01....... Aaa AAA 828,383
500,000 Union County, North
Carolina, School
District, GO,
5.800% 03/01/05....... A1 A+ 532,825
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 273
NATIONS FUND TRUST
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 University of North
Carolina, Revenue
Refunding, Utilities
Systems,
5.200% 08/01/06....... Aa AA $ 1,026,600
Wake County, North
Carolina, GO:
1,000,000 4.200% 04/01/98......... Aaa AAA 1,007,700
1,000,000 4.700% 04/01/05......... Aaa AAA 1,006,710
1,000,000 Wake County, North
Carolina, Public
Improvement
Revenue GO,
4.600% 02/01/06....... Aaa AAA 990,340
1,200,000 Wayne County, North
Carolina, GO,
4.900% 04/01/05....... Aaa AAA 1,213,368
-----------
33,277,293
-----------
GUAM -- 7.4%
Government of Guam,
Series A:
1,500,000 4.900% 09/01/97......... NR BBB 1,511,160
1,445,000 5.150% 11/15/07......... NR BBB 1,328,461
-----------
2,839,621
-----------
PUERTO RICO -- 1.3%
500,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.600% 05/01/14....... NR BBB 513,605
-----------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 3.1%
$1,150,000 Washington State Public
Power Supply, System
Revenue Refunding,
(Nuclear Project
Number 2), Series A,
5.800% 07/01/07....... Aa AA $ 1,199,243
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $36,151,873).... 37,829,762
==========
<CAPTION>
SHARES
- -----------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 0.6%
(Cost $241,010)
241,010 AIM Tax-Exempt Fund............. 241,010
----------
TOTAL INVESTMENTS
(Cost $36,392,883*)........................ 98.5% 38,070,772
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.5 584,432
------ -----------
NET ASSETS................................... 100.0% $38,655,204
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 274
NATIONS FUND TRUST
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.2%
NORTH CAROLINA -- 90.8%
$1,000,000 Buncombe County, North
Carolina, Metropolitan
Sewer District, Sewer
System Revenue, Pre-
refunded, Series B,
6.750% 07/01/22....... Aaa NR $ 1,152,420
1,500,000 Charlotte, North
Carolina, Health Care
System Revenue
Refunding,
Mecklenburg Hospital
Authority,
6.250% 01/01/20....... Aa AA 1,561,635
1,000,000 Charlotte, North
Carolina, Public
Improvement, GO,
5.300% 04/01/05....... Aaa AAA 1,052,580
1,750,000 Fayetteville, North
Carolina, Public Works
Commission Revenue
Refunding,
(FGIC Insured),
4.750% 03/01/14....... Aaa AAA 1,624,613
3,000,000 Martin County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority
Revenue, Solid Waste
Disposal, AMT,
(Weyerhaeuser
Company),
5.650% 12/01/23....... A2 A 2,917,830
1,000,000 Mecklenburg County,
North Carolina,
Industrial Facilities
and Pollution Control
Finance Authority
Revenue Refunding,
(Fluor Corporation
Project),
5.250% 12/01/09....... A2 A 990,230
1,000,000 Mecklenburg County,
North Carolina,
Refunding, GO,
5.400% 03/01/00....... Aaa AAA 1,050,200
1,000,000 Monroe, North Carolina,
Combined Enterprise
System Revenue,
6.000% 03/01/14....... A A 1,033,140
1,000,000 Morganton, North
Carolina, Water and
Sewer Revenue, GO,
(FGIC Insured),
5.600% 06/01/10....... Aaa AAA 1,044,750
1,050,000 New Hanover County,
North Carolina,
Hospital Revenue, (New
Hanover Regional
Medical Center
Project),
(AMBAC Insured),
4.750% 10/01/13....... Aaa AAA 973,539
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 New Hanover County,
North Carolina,
Industrial Facilities
and Pollution Control
Financing Authority,
AMT, (Solid Waste
Disposal, Occidental
Petroleum Corporation
Project),
6.500% 08/01/14....... Baa3 BBB $ 1,034,100
1,000,000 North Carolina Eastern
Municipal Power
Agency, Power Systems
Revenue Refunding,
Series B,
6.000% 01/01/06....... A BBB+ 1,019,640
North Carolina Housing
Finance Agency:
1,460,000 Multi-family Revenue,
Federal Housing
Authority Insured
Mortgage,
5.350% 09/01/14....... Aa AA 1,380,576
830,000 Series U,
6.700% 03/01/18....... Aa A+ 873,633
1,000,000 Single-family Revenue,
Series W,
6.200% 09/01/09....... Aa A+ 1,057,410
North Carolina Medical
Care Commission,
Hospital Revenue
Refunding:
800,000 (Carolina MediCorp
Project),
5.500% 05/01/15....... Aa AA 793,368
1,000,000 (Presbyterian Health
Service Project),
5.500% 10/01/14....... Aa AA 998,410
1,000,000 (Rex Hospital Project),
6.250% 06/01/17....... A1 A+ 1,068,670
1,000,000 North Carolina Municipal
Power Agency,
Refunding #1,
Catawba Electric
Revenue Refunding,
(FSA Insured),
6.200% 01/01/18....... Aaa AAA 1,048,750
1,500,000 Onslow County, North
Carolina, Combined
Enterprise System
Revenue,
(MBIA Insured),
5.875% 06/01/09....... Aaa AAA 1,594,875
1,000,000 Orange County, North
Carolina, GO,
5.500% 02/01/14....... Aa1 AA+ 1,030,130
1,500,000 Wake County, North
Carolina, Hospital
Revenue,
(MBIA Insured),
5.125% 10/01/26....... Aaa AAA 1,425,330
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 275
NATIONS FUND TRUST
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 Wilmington, North
Carolina, Water
Authority, GO,
5.700% 06/01/15....... A1 A+ $ 1,043,700
1,000,000 Winston-Salem, North
Carolina, Water and
Sewer Systems Revenue,
Series B,
5.600% 06/01/14....... Aa AA+ 1,016,970
-----------
28,786,499
-----------
GUAM -- 2.9%
1,000,000 Government of Guam, GO,
Series A,
5.200% 11/15/08....... NR BBB 915,960
-----------
PUERTO RICO -- 3.5%
500,000 Puerto Rico Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage - Portfolio
I), AMT, (GNMA/FNMA/
FHLMC Collateral),
6.250% 04/01/29....... Aaa AAA 509,300
600,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07....... NR BBB- 612,090
-----------
1,121,390
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $29,626,714).... 30,823,849
===========
<CAPTION>
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 1.1%
(Cost $338,000)
338,000 AIM Tax-Exempt Fund............. $ 338,000
===========
TOTAL INVESTMENTS
(Cost $29,964,714*)........................ 98.3% 31,161,849
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.7 528,981
----- ===========
NET ASSETS................................... 100.0% $31,690,830
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes was $29,967,605.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE> 276
NATIONS FUND TRUST
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.6%
SOUTH CAROLINA -- 98.6%
$ 500,000 Anderson County, South
Carolina, Revenue
Refunding, GO,
6.400% 04/01/03....... A A $ 551,540
500,000 Beaufort County, South
Carolina, School
District, GO, (AMBAC
Insured),
6.250% 02/01/01....... Aaa AAA 541,835
1,000,000 Berkeley County, South
Carolina, Refunding
and Improvement
Authority, (FGIC
Insured),
5.300% 05/01/04....... Aaa AAA 1,044,820
500,000 Berkeley County, South
Carolina, Water and
Sewer Authority
Revenue,
(MBIA Insured),
6.100% 06/01/98....... Aaa AAA 524,530
Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Medical
Society Health
Project), (MBIA
Insured):
500,000 5.000% 10/01/99......... Aaa AAA 512,405
1,000,000 6.000% 10/01/09......... Aaa AAA 1,047,360
1,000,000 Charleston County, South
Carolina, Park and
Recreation Commission
District, GO,
4.900% 02/01/99....... Aa AA- 1,023,500
1,040,000 Charleston County, South
Carolina, Solid Waste
User Fee Revenue,
(MBIA Insured),
5.800% 01/01/06....... Aaa AAA 1,110,325
500,000 Chester County, South
Carolina, School
District, GO,
6.100% 02/01/01....... NR A 541,360
Columbia, South
Carolina, Waterworks
and Sewer System
Revenue:
2,700,000 Capital appreciation,
Zero coupon 02/01/03+... Aa AA 1,939,896
855,000 6.200% 02/01/99......... Aa AA 906,497
1,250,000 5.500% 02/01/09......... Aa AA 1,286,537
1,000,000 Darlington County, South
Carolina, Industrial
Development Revenue,
(Nucor Corporation
Project), Series A,
5.750% 08/01/23....... A1 AA- 978,240
1,250,000 Florence, South
Carolina, Water and
Sewer Revenue
Refunding #002,
(AMBAC Insured),
5.150% 03/01/06....... Aaa AAA 1,272,000
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,000,000 Georgetown County, South
Carolina, PCR,
(International Paper
Company Project),
6.250% 06/15/05....... A3 A- $ 1,081,720
Grand Strand Water and
Sewer Authority
Revenue Refunding,
(MBIA Insured):
1,000,000 5.900% 06/01/01......... Aaa AAA 1,066,570
1,950,000 6.300% 06/01/05......... Aaa AAA 2,138,077
1,000,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series C,
5.300% 05/01/04....... NR AA- 1,024,160
1,885,000 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement,
(AMBAC Insured),
5.500% 12/01/06....... Aaa AAA 1,972,068
Lancaster County, South
Carolina, School
District, GO, (MBIA
Insured):
600,000 5.900% 07/01/01......... Aaa AAA 645,654
500,000 6.500% 07/01/07......... Aaa AAA 552,110
Medical University of
South Carolina,
Hospital Facilities
Revenue, Series A:
500,000 6.400% 07/01/99......... A A+ 531,865
Refunding:
500,000 7.000% 07/01/01......... A A+ 554,280
1,000,000 7.000% 07/01/02......... A A+ 1,102,890
2,500,000 7.200% 07/01/05......... A A+ 2,776,800
1,750,000 North Charleston, South
Carolina, Refunding,
GO,
5.600% 08/01/07....... A AA- 1,830,973
1,000,000 Oconee County, South
Carolina, PCR,
Refunding, (Duke Power
Company Project),
5.800% 04/01/14....... Aa2 AA- 1,010,680
1,500,000 Oconee County, South
Carolina, School
District, Refunding,
Series B,
6.000% 03/01/99....... A A 1,576,980
Piedmont Municipal Power
Agency, Revenue Bonds,
(South Carolina
Electric Company
Project):
2,000,000 5.400% 01/01/99......... A BBB 2,023,100
1,600,000 (MBIA Insured),
6.000% 01/01/05....... Aaa AAA 1,746,128
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE> 277
NATIONS FUND TRUST
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,215,000 Richland County, South
Carolina, Hospital
Facilities Revenue
Refunding, (Providence
Hospital Project),
(CGIC Insured),
4.700% 10/01/02....... Aaa AAA $ 1,220,565
Richland County, South
Carolina, PCR, (Union
Camp Corporation
Project), Series C:
2,000,000 5.875% 11/01/02......... A1 A- 2,107,180
1,000,000 6.350% 11/01/07......... A1 A- 1,103,460
Richland County, South
Carolina, Revenue
Refunding and
Improvement:
500,000 5.750% 12/01/99......... Aa AA 529,225
2,120,000 Series B,
4.850% 03/01/04....... Aa AA 2,148,641
1,590,000 Richland County, South
Carolina, School
District, No. 2,
Refunding, Series A,
(MBIA Insured),
4.900% 03/01/04....... Aaa AAA 1,611,433
Rock Hill, South
Carolina, School
District, No. 3,
Refunding, Series B,
(FGIC Insured):
500,000 5.800% 02/01/01......... Aaa AAA 531,545
1,910,000 5.900% 02/01/02......... Aaa AAA 2,041,924
South Carolina State
Housing Finance and
Development Authority:
1,000,000 Homeownership Mortgage
Purchase, Series A,
5.550% 07/01/15....... Aa AA 1,003,920
Multi-family Housing
Revenue:
1,000,000 Series A, (FHA/VA/
Private Mortgages
Insured),
6.800% 11/15/11....... Aaa NR 1,061,960
5,000,000 (United Dominion
Project),
6.500% 05/01/04....... NR BBB+ 5,220,250
950,000 Rental Housing Revenue,
(Windsor Shores
Project), Series B,
(FHA/VA/Private
Mortgages Insured),
5.600% 07/01/16....... NR AA 915,135
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
South Carolina State
Jobs -- Economic
Development Authority,
Hospital Facilities
Revenue Refunding,
(AMBAC Insured) --
(continued):
$1,000,000 5.450% 08/01/15......... Aaa AAA $ 975,200
(Mary Black Memorial
Hospital Inc.
Project):
1,000,000 5.200% 10/01/04......... Aaa AAA 1,027,010
1,000,000 5.300% 10/01/05......... Aaa AAA 1,029,280
South Carolina State
Public Service
Authority, Revenue
Bonds:
1,000,000 Series A,
5.200% 07/01/03....... Aa A+ 1,030,270
1,000,000 Series B,
6.600% 07/01/01....... Aaa AAA 1,110,470
1,000,000 Series C,
7.200% 07/01/06....... Aa AA- 1,034,700
1,750,000 South Carolina State
Revenue Bonds, GO,
Series W,
6.000% 05/01/01....... Aaa AA+ 1,896,790
1,005,000 Spartanburg County,
South Carolina, GO,
5.700% 02/01/06....... A1 A+ 1,066,787
1,000,000 Spartanburg, South
Carolina, Waterworks
and Sewer System
Authority, Revenue
Refunding &
Improvement,
6.200% 06/01/09....... A1 AA- 1,059,470
560,000 Summerville, South
Carolina, Water and
Sewer Authority
Revenue,
6.050% 09/01/00....... A A- 601,182
745,000 Sumter County, South
Carolina, School
District, No. 17,
7.000% 03/01/97....... A A 765,309
1,000,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation Project),
AMT,
5.700% 01/01/24....... A2 A+ 971,330
York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project):
560,000 Series A,
7.400% 01/01/10....... Baa1 BBB 601,670
1,900,000 Series B,
6.850% 04/01/01....... Baa1 BBB 2,037,883
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE> 278
NATIONS FUND TRUST
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 500,000 York County, South
Carolina, School
District, No. 3, GO,
Series B,
5.700% 07/01/97....... Ba A $ 512,145
500,000 York County, South
Carolina, Water and
Sewer Revenue,
6.125% 12/01/08....... NR NR 524,580
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $67,953,711).... 70,654,214
==========
<CAPTION>
SHARES
- ---------
<S> <C> <C> <C>
MONEY MARKET FUND -- 0.2%
(Cost $152,275)
152,275 AIM Tax-Exempt Fund............. 152,275
==========
TOTAL INVESTMENTS
(Cost $68,105,986*)........................ 98.8% 70,806,489
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.2 885,753
---- -----------
NET ASSETS................................... 100.0% $71,692,242
====== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 4.815%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CGIC Capital Guaranty Insurance Corporation
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
Nations South Carolina Intermediate Municipal Bond Fund had
the following insurance concentration greater than 10% at
November 30, 1995 (as a percentage of net assets):
MBIA 13.1%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE> 279
NATIONS FUND TRUST
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.0%
SOUTH CAROLINA -- 86.5%
$ 340,000 Beaufort County, South
Carolina, GO, (MBIA
Insured),
5.600% 12/01/08........ Aaa AAA $ 351,281
750,000 Berkeley County, South
Carolina, PCR, (South
Carolina Electric and
Gas Company),
6.500% 10/01/14........ A2 A1+ 803,258
500,000 Charleston, South
Carolina, GO,
6.500% 06/01/11........ Aa AA 542,810
500,000 Charleston County, South
Carolina, Hospital
Facilities Revenue,
(Bon Secours Health
Systems Project), (FSA
Insured),
5.625% 08/15/25........ Aaa AAA 499,595
500,000 Chester County, South
Carolina, Industrial
Development Authority
Revenue Refunding,
(Springs Industries
Inc. Project),
7.350% 02/01/14........ NR BBB+ 533,720
500,000 Clemson University, South
Carolina, Stadium
Refunding Bonds,
Student and Faculty
Housing, Series M,
(MBIA Insured),
6.600% 06/01/08........ Aaa AAA 550,935
450,000 Columbia, South Carolina,
GO, Series A,
6.500% 02/01/12........ Aa AA 483,295
750,000 Columbia, South Carolina,
Waterworks and Sewer
System Revenue,
5.500% 02/01/09........ Aa AA 771,923
Darlington County, South
Carolina, Industrial
Development Revenue:
1,000,000 (Nucor Corporation
Project), Series A,
5.750% 08/01/23........ A1 AA- 978,240
500,000 (Sonoco Products Company
Project),
6.125% 06/01/25........ A2 A+ 511,815
300,000 Darlington County, South
Carolina, PCR,
(Carolina Power & Light
Company),
6.600% 11/01/10........ A2 A1+ 321,522
500,000 Dorchester County, South
Carolina, School
District No. 002, GO,
(FGIC Insured),
4.800% 07/01/25........ Aaa AAA 501,885
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 500,000 Georgetown County, South
Carolina, PCR,
(International Paper
Company Project),
6.250% 06/15/05........ A3 A- $ 540,860
400,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series C,
5.500% 05/01/11........ NR AA- 402,024
250,000 Myrtle Beach, South
Carolina, GO,
5.400% 03/01/11........ A1 A+ 251,740
500,000 Oconee County, South
Carolina, PCR,
Refunding, (Duke Power
Company Project),
5.800% 04/01/14........ Aa2 AA- 505,340
500,000 Richland County, South
Carolina, Hospital
Facilities Revenue
Refunding, (Providence
Hospital Project),
(CGIC Insured),
5.250% 10/01/10........ Aaa AAA 499,450
525,000 Richland County, South
Carolina, Sewer System
Revenue, GO, Series A,
5.500% 03/01/17........ Aa AA 533,001
500,000 Richland County, South
Carolina, Waste
Disposal Facilities
Revenue Refunding,
(Union Camp Corporation
Project), Series A,
AMT,
6.750% 05/01/22........ A1 A- 526,160
South Carolina State,
Housing Finance and
Development Authority,
Series A:
300,000 Homeownership Mortgage
Purchase,
6.375% 07/01/16........ Aa AA 308,703
250,000 Homeownership Mortgage
Revenue,
(FHA/VA/Private
Mortgages Insured),
7.625% 07/01/14........ Aa AA 267,792
South Carolina State,
Jobs-Economic
Development Authority,
Health Facilities
Revenue:
500,000 First Mortgage, (Lowman
Home-Trinity Lutheran
Home Project),
6.700% 09/01/20........ NR NR 501,125
500,000 (South Carolina Baptist
Hospital), (AMBAC
Insured),
5.450% 08/01/15........ Aaa AAA 487,600
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE> 280
NATIONS FUND TRUST
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 615,000 South Carolina State
Public Service
Authority Revenue
Bonds, Series C,
5.125% 01/01/32........ Aa A+ $ 560,222
500,000 York County, South
Carolina, GO, (AMBAC
Insured),
4.750% 06/01/07........ Aaa AAA 490,450
500,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation Project),
AMT,
5.700% 01/01/24........ A2 A+ 485,665
350,000 York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project), Series
A,
7.400% 01/01/10........ Baa1 BBB 376,043
-----------
13,586,454
-----------
GUAM -- 5.3%
350,000 Government of Guam, GO,
Series A,
5.200% 11/15/08........ NR BBB 320,586
500,000 Guam Airport Authority
Revenue, Series A,
5.600% 10/01/00........ NR BBB 507,990
-----------
828,576
-----------
PUERTO RICO -- 4.2%
650,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07........ NR BBB- 663,098
-----------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $14,506,033)..... 15,078,128
==========
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 2.5%
(Cost $402,265)
402,265 AIM Tax-Exempt Fund.............. $ 402,265
===========
TOTAL INVESTMENTS
(Cost $14,908,298*)........................ 98.5% 15,480,393
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.5 229,731
----- -----------
NET ASSETS................................... 100.0% $15,710,124
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CGIC Capital Guaranty Insurance Corporation
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FSA Financial Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE> 281
NATIONS FUND TRUST
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.8%
TENNESSEE -- 80.9%
Anderson County,
Tennessee, Health and
Educational Facilities
Board, (Methodist
Medical Center):
$ 585,000 5.000% 07/01/01......... A1 NR $ 593,997
1,000,000 5.400% 07/01/04......... A1 NR 1,019,890
600,000 Bristol, Tennessee,
Water and Sewer
Authority Revenue,
5.000% 07/01/00....... A NR 615,534
Chattanooga-Hamilton
County, Tennessee,
Hospital Authority
Revenue, GO, (Erlanger
Medical Center), (FSA
Insured):
500,000 5.000% 10/01/00......... Aaa AAA 514,665
500,000 5.375% 10/01/04......... Aaa AAA 520,470
650,000 Hamilton County,
Tennessee, GO,
5.000% 07/01/01....... Aa NR 670,728
500,000 Knox County, Tennessee,
GO,
5.350% 03/01/08....... Aa AA 507,650
500,000 Madison County,
Tennessee, GO, Series
A,
5.850% 08/01/03....... A1 NR 535,975
500,000 Maury County, Tennessee,
Industrial Development
Board, PCR, Multi-
Modal Refunding,
(Saturn Corporation
Project), General
Motors Guaranty
Agreement,
6.500% 09/01/24....... A3 BBB+ 528,885
800,000 McMinn County,
Tennessee, Industrial
Development Board,
PCR, (Bowater Inc.),
6.850% 04/01/01....... Baa1 BBB 867,720
Memphis, Tennessee,
Electric System
Revenue:
Refunding,
500,000 5.000% 01/01/99......... Aa AA 512,320
Pre-refunded:
235,000 6.750% 01/01/03......... NR NR 257,372
500,000 4.900% 01/01/11......... Aa AA 479,785
700,000 Memphis, Tennessee, GO,
Series A,
Pre-Refunded,
6.800% 07/01/09....... NR AA 758,499
1,500,000 Memphis, Tennessee,
Water Revenue,
5.900% 01/01/04....... Aa AA 1,624,050
750,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Refunding, GO,
5.250% 05/15/07....... Aaa AAA 774,787
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
Shelby County,
Tennessee, Health,
Education and Housing
Facility Board:
$ 500,000 6.250% 08/01/09......... Aaa AAA $ 550,865
520,000 Series D, (MBIA
Insured),
5.300% 08/15/04....... Aaa AAA 545,839
Tennessee Housing
Development Agency,
Mortgage Finance:
200,000 Series A,
6.300% 01/01/08....... A1 A+ 206,060
300,000 Series B,
6.550% 07/01/19....... A1 A+ 310,395
305,000 Tennessee State, GO,
Series A,
7.000% 03/01/05....... Aaa AA+ 358,369
750,000 Tennessee State, Local
Development Revenue,
Series A,
5.750% 03/01/11....... A AA- 772,155
500,000 Tennessee State,
Volunteer State
Student Funding
Corporation,
Educational Loan
Revenue, Series B,
4.850% 06/01/99....... Aa NR 503,680
730,000 Williamson County,
Tennessee, Capital
Outlay Notes,
5.700% 05/01/02....... Aa NR 777,501
-----------
14,807,191
-----------
PUERTO RICO -- 15.9%
300,000 Commonwealth of Puerto
Rico, GO, Pre-
Refunded,
7.700% 07/01/20....... NR AAA 348,603
600,000 Puerto Rico, Electric
Power Authority
Revenue, Series P,
6.750% 07/01/03....... Baa1 A- 667,158
600,000 Puerto Rico, Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage Portfolio I),
AMT, (GNMA/FNMA/ FHLMC
Collateral),
5.450% 04/01/05....... Aaa AAA 614,460
500,000 Puerto Rico, Industrial,
Medical and
Environmental Agency
Facilities Financing
Authority Revenue,
Series A, (Intel
Corporation Project),
4.000% 09/01/13+...... A2 A+ 497,785
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE> 282
NATIONS FUND TRUST
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- (CONTINUED)
$ 750,000 Puerto Rico, Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.400% 05/01/09....... NR BBB $ 784,179
-----------
2,912,185
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $17,132,524).... 17,719,376
===========
MONEY MARKET FUND -- 4.2%
(Cost $772,413)
772,413 AIM Tax-Exempt Fund............. $ 772,413
===========
TOTAL INVESTMENTS
(Cost $17,904,937*).................... 101.0% 18,491,789
OTHER ASSETS AND LIABILITIES
(NET).................................. (1.0) (184,161)
----- -----------
NET ASSETS............................... 100.0% $18,307,628
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
November 30, 1995.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMT Alternative Minimum Tax
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE> 283
NATIONS FUND TRUST
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.4%
TENNESSEE -- 84.2%
$250,000 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority
Revenue, GO, (Erlanger
Medical Center),
(FSA Insured),
5.500% 10/01/07.......... Aaa AAA $ 259,010
145,000 Clarksville, Tennessee,
Water, Sewer and Gas
Authority Revenue
Refunding and
Improvement,
(MBIA Insured),
6.125% 02/01/12.......... Aaa AAA 153,625
500,000 Humphreys County,
Tennessee, Industrial
Development Board, Solid
Waste Disposal Revenue,
(du Pont (E.I.) de
Nemours & Company
Project), AMT,
6.700% 05/01/24.......... Aa3 AA- 529,975
Knox County, Tennessee,
Health, Educational and
Housing Facilities Board,
Hospital Facilities
Revenue Refunding:
100,000 (Mercy Health System),
Series B,
(AMBAC Insured),
5.600% 09/01/07.......... Aaa AAA 104,657
300,000 (Sanders Alliance Project),
(MBIA Insured),
7.250% 01/01/09.......... Aaa AAA 358,947
300,000 Knoxville, Tennessee,
Electric Revenue, Series
R,
5.450% 07/01/08.......... Aa AA 307,092
Knoxville, Tennessee, Water
Authority Revenue,
Refunding & Improvement:
250,000 5.100% 04/01/10............ Aa AA- 245,990
150,000 Series M,
5.250% 03/01/12.......... Aa AA 148,212
200,000 Loudon County, Tennessee,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Kimberly-Clark
Corporation Project),
6.200% 02/01/23.......... Aa2 AA 203,334
250,000 Maury County, Tennessee,
Industrial Development
Board, PCR, Multi-Modal
Refunding, (Saturn
Corporation Project),
General Motors Guaranty
Agreement,
6.500% 09/01/24.......... A3 BBB+ 264,442
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$250,000 McMinn County, Tennessee,
Industrial Development
Board, Solid Waste
Recycling Facility
Revenue, (Calhoun
Newsprint Project), AMT,
7.400% 12/01/22.......... Baa1 BBB $ 272,778
300,000 Memphis, Tennessee,
Electric System Revenue
Refunding, Pre-refunded,
4.900% 01/01/11.......... Aa AA 287,871
300,000 Memphis, Tennessee, GO,
5.250% 03/01/12.......... Aa AA 298,677
Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project),
AMT:
250,000 6.750% 09/01/12............ Baa2 BBB 265,565
100,000 6.200% 07/01/14............ Baa2 BBB 101,727
Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health
and Education Facilities
Board Revenue:
250,000 (Meharry Medical College
Project),
(AMBAC Insured),
7.000% 12/01/11.......... Aaa AAA 289,295
200,000 (Vanderbilt University),
Series A,
6.000% 10/01/16.......... Aa AA 206,906
250,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Revenue Refunding, GO,
5.250% 05/15/07.......... Aa AA 258,262
300,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water
and Sewer Revenue,
(FGIC Insured),
5.200% 01/01/13.......... Aaa AAA 298,977
200,000 Putnam County, Tennessee,
GO, (MBIA Insured),
5.125% 04/01/11.......... Aaa AAA 196,548
500,000 Rutherford County,
Tennessee, GO,
(MBIA Insured),
Zero coupon 05/01/15+.... Aaa AAA 165,485
245,000 Shelby County, Tennessee,
Compounded Interest,
Public Improvement, GO,
Series A,
Zero coupon 05/01/09++... Aa AA+ 118,039
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE> 284
NATIONS FUND TRUST
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$200,000 Shelby County, Tennessee,
Health, Education and
Housing Facilities Board,
Hospital Revenue,
(MBIA Insured),
5.250% 08/01/15.......... Aaa AAA $ 195,430
240,000 Shelby County, Tennessee,
School Bonds, GO, Series
A,
5.900% 03/01/15.......... Aa AA+ 249,677
100,000 Sullivan County, Tennessee,
Health, Education and
Housing Facilities Board
Revenue, (Holston Valley
Health Care Hospital),
(MBIA Insured),
5.750% 02/15/20.......... Aaa AAA 100,558
250,000 Sumner County, Tennessee,
Health, Education and
Housing Facilities Board
Revenue Refunding,
(Sumner Regional Health
System Inc.),
7.000% 11/01/03.......... NR A- 273,917
250,000 Tennessee State, GO, Series
A,
7.000% 03/01/05.......... Aaa AA+ 293,745
----------
6,448,741
----------
GUAM -- 5.4%
175,000 Government of Guam, GO,
Series A,
5.400% 11/15/18.......... NR BBB 158,567
250,000 Guam Power Authority
Revenue, Series A,
6.300% 10/01/22.......... NR BBB 252,670
----------
411,237
----------
PUERTO RICO -- 7.8%
300,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and Environmental
Control, Facilities
Financing Authority,
(Ryder Memorial Hospital
Project), Series A,
6.600% 05/01/14.......... NR BBB 308,163
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- (CONTINUED)
$300,000 Puerto Rico Public Building
Authority, Guaranteed
Public Education and
Health Facilities Revenue
Refunding, Series M,
5.500% 07/01/21.......... Baa1 A $ 290,778
----------
598,941
----------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $7,092,614)........ 7,458,919
=========
<CAPTION>
SHARES
- -------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 0.5%
(Cost $35,841)
35,841 AIM Tax-Exempt Fund................ 35,841
=========
TOTAL INVESTMENTS
(Cost $7,128,455*)................... 97.9% 7,494,760
OTHER ASSETS AND LIABILITIES
(NET)................................ 2.1 159,299
----- -----------
NET ASSETS............................... 100.0% $ 7,654,059
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 5.890%.
++ Yield to maturity is 5.870%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
Nations Tennessee Municipal Bond Fund had the following
insurance concentration greater than 10% at November 30,
1995 (as a percentage of net assets):
MBIA 15.3%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 285
NATIONS FUND TRUST
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.4%
TEXAS -- 80.7%
$1,000,000 Alief, Texas,
Independent School
District, GO,
Zero coupon
02/15/01+............. Aaa AAA $ 789,420
1,000,000 Alliance Airport
Authority Inc., Texas,
Special Facilities
Revenue, (American
Airlines Inc.
Project),
7.000% 12/01/11....... Baa2 BB+ 1,095,440
750,000 Amarillo Texas Junior
College District, GO,
(FGIC Insured),
7.600% 02/15/06....... Aaa AAA 900,285
2,000,000 Arlington, Texas,
Independent School
District, GO,
(PSFG Insured),
5.800% 02/15/02....... NR NR 2,143,397
1,000,000 Arlington, Texas,
Waterworks and Sewer
Authority Revenue,
(FGIC Insured),
6.000% 06/01/00....... Aaa AAA 1,068,920
1,100,000 Austin, Texas, GO,
Series A,
8.875% 09/01/00....... Aa AA 1,314,808
995,000 Bell County, Texas,
Health Facilities
Development, Corporate
Revenue Refunding,
(Central Texas Pooled
Health), Series A,
4.750% 10/01/23....... NR AA 997,557
1,000,000 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Series A-2,
AMT,
6.050% 06/01/03....... Aaa NR 1,067,600
500,000 Denton, Texas, Health
Facilities
Development,
Refunding,
6.000% 05/01/05....... Aaa AAA 540,295
1,050,000 Garland, Texas,
Independent School
District, GO,
(PSFG Insured),
5.500% 02/15/00....... Aaa AAA 1,097,134
1,000,000 Granbury, Texas,
Independent School
District, GO,
(PSFG Insured),
5.000% 08/01/09....... Aaa AAA 979,580
1,000,000 Harris County, Texas,
Health Facilities
Development
Corporation, (Memorial
Hospital),
6.700% 06/01/00....... A A- 1,071,530
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$1,250,000 Harris County, Texas,
Municipal Utilities
District, GO,
5.750% 10/01/03....... Aa AA+ $ 1,333,413
$1,000,000 Harris County, Texas,
Refunding, Toll Roads,
Senior Lien,
5.000% 08/15/16....... Aaa AAA 949,220
1,000,000 Judson, Texas,
Independent School
District, GO, (PSFG
Insured),
5.900% 02/01/01....... Aaa NR 1,067,660
1,000,000 Lower Colorado River
Authority, Texas,
Revenue Refunding,
Series A,
(AMBAC Insured),
6.400% 01/01/01....... Aaa AAA 1,089,260
1,000,000 Tarrant County, Texas,
Certificates of
Obligation,
Pre-refunded,
6.750% 07/15/07....... NR AA+ 1,101,700
1,000,000 Texas A&M University,
Permanent Funding,
Series C,
5.250% 07/01/02....... Aaa AA+ 1,042,300
1,000,000 Texas A&M University,
Revenue Financing
System, Refunding,
5.950% 05/15/05....... Aa AA 1,086,580
500,000 Texas State College,
Texas, Student Loan
Authority Revenue, GO,
AMT,
5.750% 08/01/11....... Aa AA 509,865
1,000,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
Series B-4, AMT,
6.200% 12/01/14....... Aa AA 1,021,670
1,000,000 Texas State, Water
Resource Finance
Authority Revenue,
7.500% 08/15/03....... A A 1,083,560
1,500,000 Travis County, Texas,
Limited Tax Revenue
Refunding, Series A,
(MBIA Insured),
5.750% 03/01/06....... Aaa AAA 1,582,530
-----------
24,933,724
-----------
ARIZONA -- 3.7%
1,000,000 Maricopa County,
Arizona, Unified
School District No.
69, (Paradise Valley
Refunding Project),
GO,
(MBIA Insured),
6.350% 07/01/10**..... Aaa AAA 1,129,670
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 286
NATIONS FUND TRUST
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MAINE -- 3.3%
$1,000,000 Bucksport, Maine, Solid
Waste Disposal
Revenue, (Champion
International
Corporation Project),
6.250% 05/01/10....... Baa1 BBB $ 1,013,640
-----------
NEW JERSEY -- 4.7%
1,300,000 New Jersey State
Turnpike Authority
Refunding, Series C,
6.500% 01/01/09....... A A 1,469,494
-----------
PENNSYLVANIA -- 3.2%
1,000,000 Monroeville,
Pennsylvania, Hospital
Authority Revenue,
5.000% 10/01/99....... Baa1 BBB+ 998,550
-----------
WISCONSIN -- 1.8%
500,000 Milwaukee, Wisconsin,
Metropolitan Sewer
District, GO, Series
A,
6.125% 10/01/03....... Aa AA 548,965
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $29,104,308).... 30,094,043
===========
MONEY MARKET FUND -- 1.2%
(Cost $352,914)
352,914 AIM Tax-Exempt Fund.......... 352,914
===========
TOTAL INVESTMENTS
(Cost $29,457,222*)..................... 98.6% 30,446,957
OTHER ASSETS AND LIABILITIES
(NET)................................... 1.4 447,562
------ -----------
NET ASSETS................................ 100.0% $30,894,519
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When issued security (see Note 1).
+ Yield to maturity is 4.700%
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PSFG Permanent School Funding Guaranty
Nations Texas Intermediate Municipal Bond Fund had the
following insurance concentration greater than 10% at
November 30, 1995 (as a percentage of net assets):
PSFG 17.1%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE> 287
NATIONS FUND TRUST
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.7%
TEXAS -- 75.8%
$ 500,000 Brazos River Authority,
Texas, Revenue
Refunding, (Houston
Light & Power Company
Project),
(MBIA Insured),
5.600% 12/01/17....... Aaa AAA $ 501,135
500,000 Carrollton, Texas,
Independent School
District Revenue,
(PSFG Insured),
8.000% 02/15/02....... Aaa AAA 593,230
500,000 Conroe, Texas,
Independent School
District Revenue, Lot
A, GO, (PSFG Insured),
5.000% 02/01/11....... Aaa AAA 483,955
500,000 Corpus Christi, Texas,
Utilities System
Revenue,
(MBIA Insured),
5.200% 07/15/12....... Aaa AAA 491,235
500,000 Dallas County, Texas,
GO,
5.250% 08/15/14....... Aaa AAA 494,675
750,000 Dallas-Fort Worth,
Texas, Regional
Airport Revenue
Refunding, Series A,
(MBIA Insured),
6.000% 11/01/09....... Aaa AAA 794,550
500,000 Gulf Coast, Texas, Waste
Disposal Authority
Revenue Refunding,
(Houston Light & Power
Company), Series A,
(MBIA Insured),
6.375% 04/01/12....... Aaa AAA 538,635
1,500,000 Irving, Texas,
Independent School
District, Capital
Appreciation
Refunding, GO, (PSFG
Insured),
Zero coupon
02/15/02+............. Aaa AAA 1,127,460
840,000 Lake Worth, Texas,
Independent School
District, Capital
Appreciation
Refunding, GO, (PSFG
Insured),
Zero coupon
02/15/19++............ NR NR 228,959
995,000 Lower Colorado River
Authority, Texas,
Revenue Refunding,
Junior Lien, Fifth
Supplemental Series,
(MBIA Insured),
5.250% 01/01/15....... Aaa AAA 979,637
500,000 Lubbock, Texas, Health
Facilities Development
Corporation, Revenue
Refunding, (St. Joseph
Health Systems
Project),
5.500% 07/01/23....... Aa AA 481,445
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 500,000 Plano, Texas,
Independent School
District, GO, (PSFG
Insured),
7.250% 02/15/04....... Aaa AAA $ 585,215
1,000,000 Red River Authority,
Texas, PCR, (Hoechst
Celanese Corporation
Project), AMT,
6.875% 04/01/17....... A2 A+ 1,063,370
1,000,000 Sabine River Authority,
Texas, PCR Refunding,
(Texas Utilities
Electric Company
Project), Series B,
(MBIA Insured),
5.850% 05/01/22....... Aaa AAA 1,021,830
500,000 San Antonio, Texas,
Water Revenue,
(FGIC Insured),
5.900% 05/15/00....... Aaa AAA 531,715
650,000... Sherman, Texas,
Independent School
District, GO,
(PSFG Insured),
6.500% 02/15/20....... Aaa AAA 709,156
1,000,000 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
System Revenue,
(Harris Methodist
Health System),
6.000% 09/01/10....... A1 NR 1,050,860
500,000 Texas State College,
Texas, Student Loan
Authority Revenue, GO,
AMT,
5.750% 08/01/11....... Aa AA 509,865
500,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
GO, Series C,
6.400% 12/01/09....... Aa AA 523,240
600,000 Texas State, Water
Development Board
Revenue, State
Revolving Fund,
Senior Lien,
6.400% 07/15/08....... Aa AAA 648,414
-----------
13,358,581
-----------
ARIZONA -- 3.2%
500,000 Maricopa County,
Arizona, Unified
School District No.
69, (Paradise Valley
Refunding Project),
GO, (MBIA Insured),
6.350% 07/01/10**..... Aaa AAA 564,835
-----------
GUAM -- 3.4%
600,000 Guam Power Authority
Revenue, Series A,
6.300% 10/01/22......... NR BBB 606,408
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
114
<PAGE> 288
NATIONS FUND TRUST
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- 5.7%
$1,000,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project),
6.125% 12/01/13....... NR BBB+ $ 997,300
-----------
PUERTO RICO -- 5.8%
500,000 Puerto Rico Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage -- Portfolio
I), AMT,
(GNMA/FNMA/FHLMC
Collateral),
6.250% 04/01/29......... Aaa AAA 509,300
500,000 Puerto Rico Industrial,
Medical and
Environmental Agency
Pollution Control
Facilities Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07....... NR BBB- 510,075
-----------
1,019,375
-----------
SOUTH CAROLINA -- 2.8%
500,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation Project),
AMT,
5.700% 01/01/24....... A2 A+ 485,665
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $16,035,724).... 17,032,164
===========
<CAPTION>
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 5.0%
(Cost $882,260)
882,260 AIM Tax-Exempt Fund......... $ 882,260
===========
TOTAL INVESTMENTS
(Cost $16,917,984*).................... 101.7% 17,914,424
OTHER ASSETS AND LIABILITIES
(NET).................................. (1.7) (292,708)
------ ------------
NET ASSETS............................... 100.0% $17,621,716
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When issued security (see Note 1).
+ Yield to maturity is 5.380%.
++ Yield to maturity is 6.510%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
PSFG Permanent School Funding Guaranty
Nations Texas Municipal Bond Fund had the following
insurance concentrations greater than 10% at November 30,
1995 (as a percentage of net assets):
MBIA 24.6%
PSFG 21.2%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE> 289
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.4%
VIRGINIA -- 98.0%
Arlington County,
Virginia, GO:
$2,345,000 5.400% 08/01/02........ Aaa AAA $ 2,486,075
3,000,000 5.000% 07/15/03........ Aaa AAA 3,105,540
2,900,000 5.900% 12/01/03........ Aaa AAA 3,163,929
1,715,000 Series A, Pre-refunded,
6.700% 06/01/02...... Aaa AAA 1,885,917
1,000,000 Arlington County,
Virginia, Industrial
Development
Authority, Hospital
Facilities Revenue,
Pre-refunded,
6.650% 09/01/05...... Aaa NR 1,131,480
3,455,000 Augusta County,
Virginia, Industrial
Development
Authority,
Pre-refunded,
7.000% 09/01/21...... A NR 3,951,173
1,000,000 Charlottesville-Albemarle,
Virginia, Airport
Authority Revenue
Refunding, AMT,
6.125% 12/01/09...... NR BBB 984,330
1,000,000.. Chesapeake, Virginia,
GO,
5.700% 08/01/01...... Aa AA 1,067,120
Chesapeake, Virginia,
Revenue Refunding:
1,000,000 5.000% 12/01/03........ Aa AA 1,029,900
6,195,000 5.125% 12/01/05........ Aa AA 6,378,248
Chesterfield County,
Virginia, GO:
1,095,000 7.100% 03/01/00........ Aaa AA+ 1,211,409
1,000,000 Series A,
6.500% 01/15/01...... Aaa AA+ 1,101,070
1,000,000 Series B:
6.500% 01/01/02...... Aaa AA+ 1,113,180
2,120,000 Pre-refunded,
6.700% 01/01/11...... NR AA+ 2,373,934
2,000,000 Chesterfield County,
Virginia, Public
Improvement, GO,
5.900% 07/15/02...... Aaa AA+ 2,176,660
Chesterfield County,
Virginia, Water and
Sewer Authority
Revenue,
Revenue Bond:
1,000,000 6.200% 11/01/05........ Aa AA 1,097,200
Series A:
2,000,000 5.500% 11/01/00........ Aa AA 2,107,140
2,020,000 5.625% 11/01/01........ Aa AA 2,149,805
1,320,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco Corporation
Project),
5.900% 03/01/05...... A1 A 1,502,424
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Fairfax County,
Virginia, Industrial
Development Authority
Revenue Refunding,
(Inova Health Systems
Hospital Project):
$1,000,000 6.100% 08/15/99........ Aa AA- $ 1,062,780
2,250,000 4.500% 08/15/02........ Aa AA- 2,235,712
Fairfax County,
Virginia, Public
Improvement, GO,
Series A:
3,500,000 4.900% 06/01/04........ Aaa AAA 3,565,800
Pre-refunded:
1,000,000 5.875% 04/01/02........ Aaa AAA 1,059,700
3,500,000 6.250% 04/01/07........ Aaa AAA 3,787,595
3,135,000 Fairfax County,
Virginia, Water and
Sewer Authority
Revenue,
5.100% 11/15/04...... Aaa AAA 3,225,758
1,000,000 Fredericksburg,
Virginia, Industrial
Development
Authority, (Mary
Washington Hospital),
Series A,
(FGIC Insured),
6.100% 08/15/00...... Aaa AAA 1,075,030
Hampton, Virginia,
Public Improvement,
GO:
1,000,000 6.500% 01/01/00........ Aa AA- 1,081,980
2,190,000 Series C,
4.750% 08/01/05...... Aa AA- 2,183,145
Hampton Roads
Sanitation District,
Virginia, Sewer
Revenue Refunding:
4,440,000 4.400% 10/01/01........ Aa AA 4,444,307
3,000,000 4.500% 10/01/02........ Aa AA 3,006,840
1,000,000 Pre-refunded,
7.100% 07/01/01...... Aaa AAA 1,114,570
Henrico County,
Virginia, Industrial
Development
Authority:
2,105,000 7.500% 08/01/02........ Aa AA 2,437,611
500,000 7.000% 08/01/13........ Aa AA 579,995
3,500,000 Solid Waste,
(Browning-Ferris
Industries Inc.
Project),
5.300% 12/01/11**.... A2 A 3,500,000
Henrico County,
Virginia, Public
Improvement
Authority:
3,500,000 4.700% 01/15/02........ Aaa AAA 3,565,100
1,000,000 4.900% 01/15/04........ Aaa AAA 1,023,500
5,000,000 Refunding,
4.600% 01/15/01...... Aaa AAA 5,079,600
1,500,000 Henrico County,
Virginia, Water and
Sewer Authority
Revenue,
Pre-refunded,
6.200% 05/01/04...... A1 AAA 1,649,505
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
116
<PAGE> 290
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,110,000 Henry County, Virginia,
Public Service
Authority, Water and
Sewer Authority
Revenue,
5.500% 11/15/99...... Aaa AAA $ 1,162,092
1,915,000 James City County, GO,
(FGIC Insured),
5.000% 12/15/08**.... Aaa AAA 1,907,704
1,000,000 Leesburg, Virginia,
Revenue Refunding,
5.500% 08/01/06...... A1 A 1,042,570
Loudoun County,
Virginia, Industrial
Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center),
(FSA Insured):
1,500,000 5.500% 06/01/08........ Aaa AAA 1,525,590
1,765,000 5.600% 06/01/09........ Aaa AAA 1,796,770
Loudoun County,
Virginia, Sanitation
Authority:
2,000,000 Refunding and
Improvement
Authority,
5.000% 10/01/02...... Aa AA- 2,061,720
1,000,000 Water and Sewer
Authority Revenue,
(FGIC Insured),
5.800% 01/01/01...... Aaa AAA 1,062,200
2,500,000 Lynchburg, Virginia,
Public Improvement,
GO,
4.750% 04/01/01...... Aa AA 2,547,025
1,000,000 Manassas, Virginia,
Industrial
Development
Authority, PCR
Refunding,
7.300% 05/01/08...... A1 NR 1,104,120
Newport News, Virginia,
Public Improvement:
Series B:
2,750,000 5.200% 07/01/00........ Aa AA- 2,839,072
5,000,000 5.200% 11/01/04........ Aa AA- 5,187,600
3,200,000 Series E,
5.200% 01/01/14...... Aa AA- 3,137,376
Newport News, Virginia,
Water and Sewer
Authority Revenue:
Series A:
1,020,000 5.500% 06/01/01........ Aa AA- 1,075,325
1,095,000 5.600% 06/01/02........ Aa AA- 1,163,525
1,000,000 Series B,
5.100% 11/01/03...... Aa AA- 1,034,180
520,000 Norfolk, Virginia,
Industrial
Development
Authority, Medical
Center,
6.400% 11/01/99...... Aa NR 536,890
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Norfolk, Virginia,
Public Improvement,
GO, Series A:
$2,500,000 5.000% 02/01/99........ Aa AA $ 2,565,350
1,000,000 5.900% 02/01/06........ Aa AA 1,065,410
2,250,000 Norfolk, Virginia,
Redevelopment and
Housing Authority,
Educational Facility
Revenue, (Tidewater
Community College
Campus),
5.875% 11/01/15...... Aa AA 2,313,023
2,000,000 Norfolk, Virginia,
Water Revenue,
(MBIA Insured),
5.700% 11/01/10...... Aaa AAA 2,084,300
Portsmouth, Virginia,
Public Improvement:
1,000,000 5.000% 08/01/02........ A AA- 1,029,050
1,000,000 5.250% 08/01/04........ A AA- 1,039,450
Pre-refunded:
1,750,000 6.700% 08/01/03........ NR AA- 1,954,540
1,735,000 6.800% 08/01/06........ NR AA- 1,945,056
1,000,000 6.800% 08/01/09........ NR AA- 1,121,070
Prince William County,
Virginia, GO, Series
A:
3,500,000 4.900% 08/01/05........ Aa AA 3,537,380
1,000,000 5.000% 08/01/06........ Aa AA 1,011,400
1,465,000 6.200% 12/01/10........ Aa AA 1,555,361
Pre-refunded:
1,000,000 5.950% 02/01/01........ Aaa AA 1,058,790
1,000,000 6.250% 02/01/05........ Aaa AA 1,076,410
1,595,000 6.250% 02/01/07........ Aaa AA 1,723,892
1,000,000 Prince William County,
Virginia, Revenue,
Pre-refunded,
6.300% 10/15/07...... NR A- 1,092,260
2,250,000 Prince William County,
Virginia, Service
Authority, Water and
Sewer Revenue,
(FGIC Insured),
6.500% 07/01/21...... Aaa AAA 2,522,903
2,000,000 Richmond, Virginia, GO,
7.150% 01/15/99...... A1 AA 2,174,640
Richmond, Virginia,
Metropolitan
Expressway Authority,
Revenue Refunding,
Series A,
(FGIC Insured):
1,000,000 5.650% 07/15/00........ Aaa AAA 1,056,020
690,000 5.750% 07/15/22........ Aaa AAA 693,719
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE> 291
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Richmond, Virginia,
Public Improvement,
GO:
Series A:
$1,000,000 5.900% 01/15/99........ A1 AA $ 1,051,040
2,300,000 6.500% 01/15/02........ A1 AA 2,545,019
1,000,000 6.200% 01/15/03........ A1 AA 1,088,570
1,000,000 Pre-refunded,
6.700% 01/15/11...... Aaa AA 1,122,900
2,945,000 Series B,
5.500% 07/15/13...... A1 AA 2,949,152
2,000,000 Richmond, Virginia,
Public Utilities
Revenue, Series A,
6.900% 01/15/98...... A1 A+ 2,113,980
470,000 Rivanna, Virginia,
Regional Water and
Sewer Authority,
Regional Water and
Sewer Systems Revenue
Refunding,
6.450% 10/01/12...... Aa A+ 503,958
Roanoke, Virginia,
Public Improvement,
GO, Series B:
2,000,000 5.800% 08/01/99........ Aa AA 2,107,640
1,000,000 5.800% 08/01/00........ Aa AA 1,061,910
3,295,000 6.000% 08/01/03........ Aa AA 3,532,009
Southeastern Public
Service Authority,
Virginia, (MBIA
Insured),
1,500,000 6.000% 07/01/15........ Aaa AAA 1,524,510
Series A:
1,800,000 4.700% 07/01/04........ Aaa AAA 1,796,148
5,000,000 5.100% 07/01/08........ Aaa AAA 5,032,100
Spotsylvania County,
Virginia, Public
Improvement, GO:
1,580,000 5.200% 07/15/01........ A1 A+ 1,640,704
2,320,000 5.875% 07/15/09........ A1 A+ 2,445,025
Suffolk, Virginia,
Refunding and
Improvement, GO:
1,110,000 5.400% 08/01/04........ A1 A 1,156,698
1,500,000 5.750% 08/01/08........ A1 A 1,568,910
2,000,000 University of Virginia,
Hospital Revenue
Bond,
6.000% 06/01/13...... Aa AA 2,037,200
Upper Occoquan Sewer
Authority, Virginia,
Regional Sewer
Revenue, Revenue
Bond, (MBIA Insured):
2,625,000 5.850% 07/01/99........ Aaa AAA 2,772,158
2,000,000 6.250% 07/01/05........ Aaa AAA 2,169,160
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,000,000 Virginia Beach,
Virginia, Development
Authority Facilities,
Sentara Bayside
Hospital,
5.800% 11/01/99...... Aa AA $ 1,056,340
Virginia Beach,
Virginia, GO:
Pre-refunded:
1,190,000 6.850% 06/01/02........ NR NR 1,332,681
1,000,000 6.950% 06/01/06........ NR NR 1,123,950
Refunding,
1,000,000 5.550% 02/01/01........ Aa AA 1,054,010
Series A:
1,525,000 6.900% 10/01/00........ Aa AA 1,691,362
1,000,000 6.850% 06/01/01........ Aa AA 1,116,840
Virginia College
Building Authority,
Educational
Facilities Revenue,
University of
Richmond:
2,000,000 5.625% 11/01/02........ NR AA- 2,112,480
1,990,000 5.550% 11/01/05+....... Aa A1+ 2,029,422
1,250,000 6.400% 11/01/22........ NR A1+ 1,336,125
2,000,000 Virginia Educational
Loan Authority,
Series E,
5.400% 03/01/98...... Aaa NR 2,047,740
Virginia State, Higher
Educational
Institutions Revenue,
GO:
1,175,000 6.000% 06/01/01........ Aaa AAA 1,263,548
1,000,000 Series A, Pre-refunded,
6.600% 06/01/07...... Aaa AAA 1,096,430
Virginia State, Public
Building Authority,
Correctional
Facilities, Series A:
1,000,000 6.900% 02/01/99........ Aa AA 1,082,350
2,000,000 5.800% 08/01/02........ Aa AA 2,149,420
2,000,000 6.500% 08/01/11........ Aa AA 2,168,300
Virginia State, Public
School Authority
Revenue:
4,275,000 5.750% 01/01/00........ Aa AA 4,513,032
5,000,000 5.000% 01/01/04........ Aa AA 5,116,650
Series A:
1,000,000 6.000% 01/01/01........ Aa AA 1,064,640
2,195,000 5.400% 01/01/08........ Aa AA 2,251,938
1,000,000 6.500% 08/01/08........ Aa AA 1,088,810
1,000,000 Virginia State
Residential
Authority, Sewer
System Revenue,
(Hopewell Regional
Wastewater Facility),
Series A,
6.000% 10/01/15...... NR AA 1,026,340
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
118
<PAGE> 292
NATIONS FUND TRUST
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Virginia State
Transportation Board
Authority, Contract
Revenue:
$2,105,000 5.100% 05/15/05........ Aa AA $ 2,158,951
3,000,000 Project A,
4.900% 05/15/03...... Aa AA 3,063,810
3,150,000 Route 28,
6.000% 04/01/02...... Aa AA 3,414,978
5,390,000 Route 58, Series A,
5.500% 05/15/09...... Aa AA 5,529,709
2,470,000 Virginia State, Water
and Sewer Revenue
Authority, Revenue
Bond,
5.150% 10/01/07...... NR AA 2,500,258
1,000,000 Washington County,
Virginia, Industrial
Development
Authority, Hospital
Facility Revenue
Refunding, First
Mortgage, (Johnston
Memorial Hospital),
5.625% 07/01/02...... A NR 1,042,570
1,500,000 Winchester, Virginia,
Industrial
Development Authority
Revenue, (AMBAC
Insured),
6.150% 01/01/99...... Aaa AAA 1,582,890
------------
244,733,210
------------
ALASKA -- 0.4%
1,000,000 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
A, (AMBAC Insured),
5.250% 07/01/03...... Aaa AAA 1,000,570
------------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost
$233,362,549)........ 245,733,780
===========
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 0.5%
(Cost $1,349,000)
1,349,000 AIM Tax-Exempt Fund............ $ 1,349,000
============
TOTAL INVESTMENTS
(Cost $234,711,549*)...................... 98.9% 247,082,780
OTHER ASSETS AND LIABILITIES
(NET)..................................... 1.1 2,736,987
---- ------------
NET ASSETS.................................. 100.0% $249,819,767
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When issued security (see Note 1).
+ Variable rate note. The interest rate shown reflects the rate in effect at
November 30, 1995.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE> 293
NATIONS FUND TRUST
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.2%
VIRGINIA -- 93.7%
$1,000,000 Augusta County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding, (Augusta
Hospital Corporation),
(AMBAC Insured),
5.500% 09/01/15....... Aaa AAA $ 995,140
370,000 Charlottesville-Albemarle,
Virginia, Airport
Authority, Airport
Revenue Refunding,
AMT,
6.125% 12/01/13....... NR BBB 373,804
475,000 Chesapeake, Virginia,
Industrial Development
Authority Revenue
Refunding, Port
Facilities, (Cargill
Inc. Project),
5.875% 03/01/13....... Aa3 AA- 482,381
500,000 Covington-Allegheny
County, Virginia,
Industrial Development
Authority, PCR
Refunding, (Westvaco
Corporation Project),
6.650% 09/01/18....... A1 A 543,865
250,000 Danville, Virginia,
Industrial Development
Authority Revenue,
(International Paper
Company Project),
Series A, AMT,
6.500% 03/01/19....... A3 A- 260,507
500,000 Fairfax County,
Virginia, Industrial
Development Authority
Revenue Refunding,
(Inova Health Systems
Hospital Project),
5.000% 08/15/23....... Aa AA- 457,325
1,000,000 Fairfax County,
Virginia, Sewer
Revenue Refunding,
(AMBAC Insured),
5.500% 11/15/13....... Aaa AAA 1,012,210
800,000 Giles County, Virginia,
Industrial Development
Authority, Revenue
Exempt Facilities,
(Hoechst Celanese
Corporation Project),
AMT,
5.950% 12/01/25....... A2 A+ 802,992
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 550,000 Hampton, Virginia,
Industrial Development
Authority, Hospital
Revenue Refunding,
(Sentara General
Hospital), Series A,
5.125% 11/01/16....... A A $ 496,078
400,000 Hampton, Virginia,
Museum Revenue
Refunding,
5.250% 01/01/09....... NR A- 391,832
500,000 Henry County, Virginia,
GO,
5.750% 07/15/07....... A A 529,885
700,000 James City County,
Virginia, Public
Improvement, GO, (FGIC
Insured),
5.250% 12/15/14**..... Aaa AAA 692,510
500,000 Loudoun County,
Virginia, Industrial
Development Authority,
Hospital Revenue,
(Loudoun Hospital
Center), (FSA
Insured),
5.800% 06/01/20....... Aaa AAA 507,550
Peninsula Ports
Authority, Virginia,
Health Care Facilities
Revenue Refunding:
600,000 (Mary Immaculate
Project),
6.875% 08/01/10....... NR BBB+ 631,680
500,000 (Riverside Health
Systems Project),
Series A,
6.625% 07/01/18....... Aa AA- 540,000
500,000 Pittsylvania County,
Virginia, Public
Improvement, GO,
5.850% 07/01/08....... A A 528,680
500,000 Poquoson, Virginia, GO,
Series A,
5.375% 01/01/16....... A1 A 497,240
1,300,000 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding, (Prince
William Hospital),
5.625% 04/01/12....... A NR 1,280,110
500,000 Prince William County,
Virginia, Park
Authority Revenue,
6.875% 10/15/16....... NR A- 549,450
250,000 Prince William County,
Virginia, Refunding,
GO, Series C,
5.250% 08/01/12....... Aa AA 248,608
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
120
<PAGE> 294
NATIONS FUND TRUST
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 800,000 Richmond, Virginia,
Metropolitan
Expressway Authority,
Revenue Refunding,
Series B, (FGIC
Insured),
6.250% 07/15/22....... Aaa AAA $ 843,512
920,000 Rivanna, Virginia,
Regional Water and
Sewer Authority,
Regional Water and
Sewer Systems Revenue
Refunding,
6.450% 10/01/12....... Aa A+ 986,470
600,000 Roanoke, Virginia,
Redevelopment and
Housing Authority,
Multi-family Housing
Revenue Refunding,
(United Dominion --
Laurel Ridge Project),
AMT,
6.625% 05/01/23....... NR BBB+ 628,470
250,000 Southeastern Public
Service Authority,
Virginia, Regional
Solid Waste Systems
Revenue, AMT,
6.000% 07/01/17....... Baa1 A- 249,985
500,000 Virginia Beach,
Virginia, Public
Improvement Refunding,
GO,
5.750% 11/01/08....... Aa AA 530,805
500,000 Virginia College
Building Authority,
Educational Facilities
Revenue, (Washington &
Lee University
Project),
5.750% 01/01/14....... Aa AA 510,715
500,000 Virginia Educational
Loan Authority,
(Guaranteed Student
Loan Program), Revenue
Refunding, Series C,
AMT,
5.750% 09/01/10....... A NR 497,495
500,000 Virginia State, Higher
Educational
Institutions, GO,
Series C,
5.900% 06/01/05....... Aaa AAA 536,175
640,000 Virginia State, Public
School Authority
Revenue, Series A,
6.125% 08/01/11....... Aa AA 680,941
$ 750,000 Virginia State, Resource
Authority, Sewer
Systems Revenue,
(Hopewell Regional
Wastewater Facility),
Series A, AMT,
6.000% 10/01/15....... NR AA $ 769,755
500,000 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Fauquier County Water
and Sanitation
Authority), Series C,
6.125% 05/01/14....... NR AA 531,030
800,000 West Point, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Revenue, AMT,
(Chesapeake
Corporation Project),
Series A,
6.375% 03/01/19....... Baa3 BBB 806,184
-----------
19,393,384
-----------
DISTRICT OF COLUMBIA -- 0.1%
25,000 Washington, D.C.,
Metropolitan Area
Transportation
Authority Revenue
Refunding, (FGIC
Insured),
6.000% 07/01/10....... Aaa AAA 27,186
-----------
GUAM -- 2.2%
500,000 Government of Guam, GO,
Series A,
5.200% 11/15/08....... NR BBB 457,980
-----------
PUERTO RICO -- 1.2%
250,000 Puerto Rico Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage -- Portfolio
I), AMT, (GNMA/FNMA/
FHLMC Collateral),
6.100% 10/01/15....... Aaa AAA 254,895
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $19,359,352).... 20,133,445
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE> 295
NATIONS FUND TRUST
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 4.8%
(Cost $987,902)
987,902 AIM Tax-Exempt Fund............. $ 987,902
==========
TOTAL INVESTMENTS
(Cost $20,347,254*)........................ 102.0% 21,121,347
OTHER ASSETS AND LIABILITIES
(NET)...................................... (2.0) (422,365)
---- -----------
NET ASSETS................................... 100.0% $20,698,982
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When issued security (see Note 1).
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation Bonds
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE> 296
NATIONS FUND TRUST
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 101.0%
ALABAMA -- 3.8%
$2,500,000 Jefferson County,
Alabama, Board of
Education, Warrant
Anticipation Notes,
4.900% 12/01/95........ NR NR $ 2,500,000
-----------
ALASKA -- 4.8%
1,000,000 Alaska State, Student
Loan Corporation,
Student Loan Revenue,
Series A,
4.900% 07/01/00........ Aaa AAA 1,000,360
2,000,000 North Slope Borough,
Alaska, GO, Series B,
(CGIC Insured),
6.100% 06/30/99........ Aaa AAA 2,120,340
-----------
3,120,700
-----------
ARIZONA -- 3.2%
2,000,000 Arizona State
Transportation Board,
Excise Tax Revenue,
(Maricopa County
Regional Area Road
Fund),
7.200% 07/01/97........ Aa AA- 2,077,480
-----------
CALIFORNIA -- 3.2%
1,945,000 University of California,
Hospital Revenues,
Refunding, (UCLA
Medical Center), (MBIA
Insured),
8.000% 12/01/97........ Aaa AAA 2,099,161
-----------
DISTRICT OF COLUMBIA -- 1.6%
1,000,000 District of Columbia, GO,
Series A, (MBIA
Insured),
6.000% 06/01/98........ Aaa AAA 1,041,860
-----------
FLORIDA -- 1.7%
1,000,000 Florida State Turnpike
Authority Revenue,
7.350% 07/01/98........ A1 NR 1,079,510
-----------
GEORGIA -- 7.3%
500,000 DeKalb County, Georgia,
GO, Pre-refunded,
6.500% 01/01/08........ Aaa AA+ 563,180
Georgia State, Municipal
Electric Power
Authority Revenue:
1,000,000 Series L,
7.500% 01/01/98........ A A 1,053,960
1,000,000 Series V,
5.700% 01/01/98........ A A 1,029,220
Georgia State Refunding,
GO:
1,000,000 Series C,
7.250% 07/01/01........ Aaa AA+ 1,147,730
1,000,000 Series E,
4.200% 07/01/99........ Aaa AA+ 1,004,930
-----------
4,799,020
-----------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GUAM -- 2.3%
$ 500,000 Government of Guam,
Airport Authority
Revenue, Series A,
5.400% 10/01/99........ NR BBB $ 506,170
1,000,000 Government of Guam, GO,
Series A,
4.900% 09/01/97........ NR BBB 1,007,440
-----------
1,513,610
-----------
ILLINOIS -- 1.6%
1,000,000 Illinois State, GO,
5.600% 06/01/98........ A1 AA- 1,035,580
-----------
INDIANA -- 2.1%
1,280,000 Indiana State Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project),
6.000% 09/15/99........ Aa NR 1,357,862
-----------
LOUISIANA -- 4.7%
2,000,000 Louisiana State,
Refunding, GO, Series
A, (MBIA/IBC Insured),
6.600% 08/01/97........ Aaa AAA 2,086,320
1,000,000 New Orleans, Louisiana,
GO,
4.600% 10/01/00........ Aaa AAA 1,012,050
-----------
3,098,370
-----------
MASSACHUSETTS -- 3.5%
1,200,000 Massachusetts State,
Refunding, Consolidated
Loan, GO, Series A,
(FSA Insured),
7.100% 02/01/98........ Aaa AAA 1,275,960
1,000,000 Massachusetts State,
Refunding, GO, Series
A,
5.500% 07/01/99........ A1 A+ 1,041,810
-----------
2,317,770
-----------
MICHIGAN -- 7.7%
Detroit, Michigan, GO:
2,000,000 5.375% 05/01/96.......... Baa BBB+ 2,011,620
1,000,000 Series B,
5.100% 04/01/99........ Ba1 BBB 1,002,360
Detroit, Michigan, Self-
Insurance, Series A:
1,000,000 5.200% 05/01/98.......... NR BBB- 1,017,900
1,000,000 5.600% 05/01/01.......... NR BBB- 1,009,710
-----------
5,041,590
-----------
NEVADA -- 4.7%
1,000,000 Clark County, Nevada,
Sanitation District,
GO, Series A, (AMBAC
Insured),
5.700% 07/01/99........ Aaa AAA 1,047,040
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE> 297
NATIONS FUND TRUST
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEVADA -- (CONTINUED)
$2,000,000 Washoe County, Nevada,
Airport Authority,
Airport System
Improvement Revenue,
Series A,
5.100% 07/01/99........ Aaa AAA $ 2,046,560
-----------
3,093,600
-----------
NEW MEXICO -- 3.0%
1,900,000 New Mexico Mortgage
Finance Authority,
Single-family Mortgage
Purchase Refunding,
Series A-1,
5.900% 07/01/99........ Aa AA 1,966,120
-----------
NEW YORK -- 2.6%
1,000,000 New York State,
Refunding, GO, Series
B,
6.375% 08/15/00........ A A- 1,085,300
600,000 Port Authority, New York
and New Jersey,
Consolidated Notes,
Series SS, AMT,
4.900% 09/01/97........ MIGI SP1+ 600,427
-----------
1,685,727
-----------
PENNSYLVANIA -- 4.6%
1,000,000 Monroeville,
Pennsylvania, Hospital
Authority Revenue,
5.125% 10/01/00........ Baa1 BBB+ 995,910
2,000,000 Philadelphia,
Pennsylvania, Water and
Wastewater Revenue,
4.500% 06/15/97........ Baa BBB 2,012,100
-----------
3,008,010
-----------
SOUTH CAROLINA -- 1.6%
1,000,000 Medical University of
South Carolina,
Hospital Facilities
Revenue Refunding,
Series A,
6.900% 07/01/98........ A A+ 1,063,400
-----------
SOUTH DAKOTA -- 1.6%
1,000,000 South Dakota Student Loan
Assistance Corporation,
Student Loan Revenue,
Series A,
7.000% 08/01/98........ NR A+ 1,048,030
-----------
TEXAS -- 16.1%
1,000,000 Addison, Texas,
Refunding, GO, (FGIC
Insured),
6.100% 09/01/99........ Aaa AAA 1,047,510
1,500,000 Austin, Texas,
Independent School
District,
Zero coupon
08/01/02+.............. Aaa AAA 1,100,490
995,000 Bell County, Texas,
Health Facilities
Development, Corporate
Revenue Refunding,
(Central Texas Pooled
Health), Series A,
4.750% 10/01/23........ NR AA 997,557
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$1,000,000 Bexar County, Texas,
Refunding -- Limited
Tax, GO,
6.100% 06/15/98........ Aa AA $ 1,031,680
1,000,000 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior Lien,
Series A-2, (SLMA
Insured), AMT,
5.300% 06/01/97........ Aaa NR 1,018,340
1,000,000 Conroe, Texas,
Independent School
District, GO,
Schoolhouse &
Refunding, (MBIA
Insured),
7.000% 02/01/99........ Aaa AAA 1,083,130
1,080,000 Harris County, Texas,
Health Facilities
Development
Corporation, Hospital
Revenue, (St. Luke's
Episcopal Hospital),
7.500% 02/15/97........ Aa AAA 1,128,945
1,000,000 Harris County, Texas,
Municipal Utilities
District No. 203,
Refunding, GO, (MBIA
Insured),
6.950% 03/01/99........ Aaa AAA 1,085,880
1,000,000 Houston, Texas, GO,
Series C,
5.600% 03/01/00........ Aa AA- 1,050,760
1,000,000 Texas State College,
Student Loan Authority
Revenue, GO, AMT,
5.100% 08/01/01........ Aa AA 1,016,650
-----------
10,560,942
-----------
VIRGINIA -- 8.2%
1,000,000 Chesterfield County,
Virginia, Series A,
Pre-refunded,
6.600% 01/15/03........ NR AA+ 1,102,810
2,000,000 Norfolk, Virginia, GO,
Pre-refunded,
6.600% 06/01/00........ Aaa NR 2,120,360
1,000,000 Virginia Beach, Virginia,
GO, Series A,
6.800% 06/01/99........ Aa AA 1,084,890
1,000,000 Virginia State Water and
Sewer System Revenue,
Series A,
5.500% 10/01/00**...... NR AA 1,051,830
-----------
5,359,890
-----------
WASHINGTON -- 8.8%
1,000,000 Conservation and
Renewable Energy System
Revenue, Washington,
(Washington
Conservation Project),
5.050% 10/01/98........ Aa AA 1,019,230
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE> 298
NATIONS FUND TRUST
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- (CONTINUED)
$1,570,000 King County, Washington,
GO, Series A,
9.000% 12/01/98........ Aa1 AA+ $ 1,787,178
Washington State Public
Power Supply System
Revenue Refunding,
Series C, (Nuclear
Project No. 2):
1,675,000 7.200% 07/01/99.......... Aa AA 1,825,231
1,000,000 7.300% 07/01/00.......... Aa AA 1,111,920
-----------
5,743,559
-----------
WISCONSIN -- 2.3%
1,480,000 Wisconsin State
Transportation Revenue,
Series A,
4.600% 07/01/98........ A1 AA- 1,498,293
-----------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $64,922,879)..... 66,110,084
==========
MONEY MARKET FUND -- 0.6%
(Cost $376,019)
376,019 AIM Tax-Exempt Fund............. $ 376,019
==========
TOTAL INVESTMENTS
(Cost $65,298,898*)....................... 101.6% 66,486,103
OTHER ASSETS AND LIABILITIES
(NET)..................................... (1.6) (1,027,758)
----- ----------
NET ASSETS.................................. 100.0% $65,458,345
===== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When issued security (see Note 1).
+ Yield to maturity is 5.750%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CGIC Capital Guaranty Insurance Corporation
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation Bonds
IBC Insured Bond Certificate
MBIA Municipal Bond Investors Assurance
NR Not Rated
SLMA Student Loan Marketing Association
Nations Short-Term Municipal Income Fund had the following
insurance concentration greater than 10% at November 30,
1995 (as a percentage of net assets):
MBIA 11.3%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE> 299
NATIONS FUND TRUST
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.5%
ALASKA -- 4.3%
$3,280,000 Alaska State, Student
Loan Corporation,
Student Loan Revenue,
Series A,
5.250% 07/01/03....... Aaa AAA $ 3,281,870
-----------
ARIZONA -- 1.4%
955,000 Arizona State
University, Systems
Revenue, Series A,
6.500% 07/01/01....... A1 AA 1,058,808
-----------
CALIFORNIA -- 4.5%
1,000,000 Sacramento, California,
Cogeneration
Authority, (Procter &
Gamble Company
Project),
5.700% 07/01/00....... NR BBB- 1,019,300
2,290,000 San Diego County,
California, Regional
Transportation
Commission Sales Tax
Revenue, Series A,
6.000% 04/01/08....... Aaa AA- 2,449,911
-----------
3,469,211
-----------
COLORADO -- 2.2%
1,500,000 Arapahoe County,
Colorado, School
District No. 5,
(Cherry Creek),
7.000% 12/15/04....... Aa AA 1,679,415
-----------
DISTRICT OF COLUMBIA -- 5.0%
2,000,000 District of Columbia,
GO, Series C,
Pre-refunded, (AMBAC
Insured),
7.600% 06/01/01....... Aaa AAA 2,203,560
1,500,000 Metropolitan Washington,
D.C., General Airport
Revenue, Series A,
AMT, (MBIA Insured),
5.600% 10/01/06....... Aaa AAA 1,563,255
100,000 Washington, D.C.,
Metropolitan Area
Transportation
Authority Revenue,
Refunding, (FGIC
Insured),
4.900% 01/01/05....... Aaa AAA 100,725
-----------
3,867,540
-----------
FLORIDA -- 5.7%
500,000 Delray Beach, Florida,
Water and Sewer
Authority Revenue,
Series A, Refunding,
(AMBAC Insured),
5.000% 10/01/03....... Aaa AAA 515,325
2,700,000 Duval County, Florida,
Housing Finance
Authority Refunding,
(Greentree Place
Project),
6.750% 04/01/25....... NR BBB+ 2,776,275
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000,000 Florida State Housing
Finance Agency,
Refunding,
Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/03+...... NR BBB+ $ 1,058,980
-----------
4,350,580
-----------
GEORGIA -- 3.9%
1,500,000 Burke County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation), Series
B,
4.700% 01/01/04....... NR A+ 1,514,415
1,500,000 Fulco, Georgia, Hospital
Authority Revenue,
Revenue Anticipation
Certificates,
5.100% 10/01/05....... A A 1,504,500
-----------
3,018,915
-----------
GUAM -- 1.8%
1,500,000 Government of Guam, GO,
Series A,
5.200% 11/15/08....... NR BBB 1,373,940
-----------
ILLINOIS -- 11.9%
2,500,000 Chicago, Illinois, Gas
Supply Revenue,
6.875% 03/01/15....... Aa3 AA- 2,719,300
Chicago, Illinois,
School Financing
Authority, GO:
2,000,000 4.800% 06/01/04......... Aaa AAA 1,997,240
1,160,000 Series A,
4.900% 06/01/05....... Aaa AAA 1,155,638
Illinois State Health
Facilities Authority
Revenue:
1,100,000 (Edward Hospital
Project), Series A,
5.750% 02/15/09....... A A 1,103,256
1,000,000 (Lutheran General Health
Systems Project),
Series C,
5.250% 04/01/02....... A A+ 1,018,420
1,050,000 Lansing, Illinois, Sales
Tax Increment Revenue,
Refunding,
6.500% 12/01/02....... NR BBB 1,117,116
-----------
9,110,970
-----------
INDIANA -- 3.3%
Indiana State Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project):
1,280,000 6.200% 09/15/00......... Aa NR 1,374,003
1,040,000 6.500% 09/15/02......... Aa NR 1,144,187
-----------
2,518,190
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE> 300
NATIONS FUND TRUST
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MAINE -- 3.1%
$2,325,000 Maine State, Municipal
Board Refunding,
Series A,
4.900% 11/01/02....... Aa A+ $ 2,372,756
-----------
MARYLAND -- 8.1%
1,500,000 Baltimore, Maryland,
Port Facilities
Revenue, Consolidated
Coal Sales, Series 85,
6.500% 12/01/10....... Aa2 AA- 1,645,665
1,950,000 Maryland State
Transportation
Authority, Special
Obligation Revenue,
(Baltimore/
Washington D.C.
International Airport
Project), Series A,
AMT, (FGIC Insured),
6.400% 07/01/19....... Aaa AAA 2,054,091
2,500,000 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply Revenue,
GO,
4.900% 12/01/05....... Aa1 AA 2,533,550
-----------
6,233,306
-----------
MASSACHUSETTS -- 2.6%
2,000,000 New England Education
Loan Marketing
Corporation, Series A,
5.700% 07/01/05....... A1 A 2,029,380
-----------
MISSISSIPPI -- 2.0%
1,465,000 Mississippi, Hospital
Equipment and
Facilities Authority
Revenue, (Methodist
Health System),
(MBIA Insured),
5.350% 08/15/05....... Aaa AAA 1,513,052
-----------
MISSOURI -- 2.7%
2,000,000 Kansas City, Missouri,
Industrial Development
Authority, PCR,
6.050% 04/01/06....... A3 A 2,046,860
-----------
NEVADA -- 3.6%
1,500,000 Clark County, Nevada,
School District GO,
Series A,
(MBIA Insured),
6.700% 03/01/06....... Aaa AAA 1,638,105
1,000,000 Nevada State, Municipal
GO,
7.000% 01/01/03....... Aaa AAA 1,119,950
-----------
2,758,055
-----------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW JERSEY -- 0.5%
$ 425,000 New Jersey State,
Housing and Mortgage
Finance Agency
Revenue, Home Buyer,
Series G,
(MBIA Insured),
3.750% 10/01/09....... Aaa AAA $ 422,713
-----------
PENNSYLVANIA -- 6.4%
2,000,000 Geisinger Authority,
Pennsylvania, Health
Systems Revenue,
Series A,
6.000% 07/01/01....... Aa AA 2,142,560
1,000,000 Pennsylvania
Intergovernment
Cooperative Authority,
Special Tax Revenue,
Philadelphia Funding
Program,
7.000% 06/15/05....... Aaa AAA 1,163,480
1,500,000 Philadelphia,
Pennsylvania, Water
and Wastewater
Systems,
(FGIC Insured),
5.500% 06/15/03....... Aaa AAA 1,583,220
-----------
4,889,260
-----------
PUERTO RICO -- 1.0%
750,000 University of Puerto
Rico, University
Revenue, Series K,
Pre-refunded,
6.500% 06/01/04....... Aaa A 793,320
-----------
SOUTH CAROLINA -- 0.6%
500,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation Project),
AMT,
5.700% 01/01/24....... A2 A+ 485,665
-----------
TEXAS -- 8.3%
1,000,000 Brazos, Texas, Higher
Education Authority
Inc. Revenue
Refunding, Series A-2,
AMT,
6.050% 06/01/03....... Aaa NR 1,067,600
1,000,000 Dallas, Texas, GO,
Pre-refunded,
7.000% 02/15/03....... Aaa AAA 1,053,830
1,000,000 Gulf Coast, Texas,
Industrial Development
Authority,
7.000% 04/01/04....... Baa1 BBB 1,053,930
1,500,000 Irving, Texas,
Independent School
District, Capital
Appreciation
Refunding, GO, (PSFG
Insured),
Zero coupon
02/15/02++............ Aaa AAA 1,127,460
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE> 301
NATIONS FUND TRUST
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$1,000,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
Series B-4, AMT,
6.100% 12/01/06....... Aa AA $ 1,041,710
995,000 Texas State, Water
Resources Finance
Authority Revenue,
7.500% 08/15/03....... A A 1,078,142
-----------
6,422,672
-----------
VIRGINIA -- 11.6%
1,000,000 Covington-Allegheny
County, Virginia,
Industrial Development
Authority, PCR,
(Westvaco Corporation
Project),
5.900% 03/01/05....... A1 A 1,138,200
1,330,000 Halifax County,
Virginia, Industrial
Development Authority,
(Old Dominion Electric
Cooperative), AMT,
5.900% 12/01/02....... NR A+ 1,392,005
1,430,000 Portsmouth, Virginia GO,
5.600% 08/01/99....... A AA- 1,497,825
2,250,000 Prince William County,
Virginia, GO, Series
C,
5.000% 08/01/06....... Aa AA 2,275,650
1,500,000 Virginia State, Public
Facilities GO, Series
A,
5.400% 06/01/05....... Aaa AAA 1,591,545
1,000,000 Virginia State, Public
Schools Authority
Revenue, Series B,
6.650% 01/01/98....... Aa AA 1,047,550
-----------
8,942,775
-----------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 3.0%
$1,000,000 Washington State, GO,
Series R-92-A,
6.400% 09/01/03....... Aa AA $ 1,097,690
1,150,000 Washington State Public
Power Supply Systems
Revenue, (Nuclear
Project No. 2), Series
A,
5.800% 07/01/07....... Aa AA 1,199,243
-----------
2,296,933
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $71,578,431).... 74,936,186
----------
<CAPTION>
SHARES
- ---------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 1.0%
(Cost $777,583)
777,583 AIM Tax Exempt Fund............. 777,583
----------
TOTAL INVESTMENTS
(Cost $72,356,014*)........................ 98.5% 75,713,769
OTHER ASSETS AND LIABILITIES
(NET)...................................... 1.5 1,143,384
---- -----------
NET ASSETS................................... 100.0% $76,857,153
====== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest shown reflects the rate in effect at
November 30, 1995.
++ Yield to maturity is 5.450%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
PSFG Permanent School Funding Guaranty
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
128
<PAGE> 302
NATIONS FUND TRUST
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.7%
ALABAMA -- 5.6%
$2,000,000 Birmingham, Alabama,
Refunding, Series B,
GO,
6.250% 04/01/12...... A1 AA $ 2,118,220
3,000,000 Butler County, Alabama,
Industrial
Development Board,
Solid Waste Disposal
Revenue, (James River
Corporation Project),
8.000% 09/01/28...... NR BBB- 3,349,830
1,000,000 Morgan County-Decatur,
Alabama, Healthcare
Authority, Hospital
Revenue Refunding,
(Decatur General
Hospital),
(Connie Lee Insured),
6.250% 03/01/13...... NR AAA 1,059,680
------------
6,527,730
------------
ALASKA -- 5.5%
1,000,000 Alaska State Housing
Finance Corporation,
Revenue Bonds,
(Insured Mortgage
Program), 1st Series,
5.750% 12/01/23...... Aa1 A+ 968,920
1,000,000 Anchorage, Alaska,
Electric Utilities
Revenue Refunding,
Senior Lien,
(MBIA Insured),
8.000% 12/01/09...... Aaa AAA 1,283,030
2,250,000 Anchorage, Alaska,
Telephone Utilities
Revenue Refunding,
(AMBAC Insured),
Series A,
4.500% 12/01/02...... Aaa AAA 2,223,405
2,000,000 Valdez, Alaska, Marine
Terminal Revenue
Refunding, (British
Petroleum Pipeline
Inc. Project), Series
B,
5.500% 10/01/28...... Aa3 NR 1,932,100
------------
6,407,455
------------
ARIZONA -- 0.9%
1,000,000 Maricopa County,
Arizona, Unified
School District No.
48, (Scottsdale
Refunding), Series B,
6.300% 07/01/04...... Aa AA 1,115,660
------------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
COLORADO -- 3.2%
$1,500,000 Arapahoe County,
Colorado, Capital
Improvement,
Transportation,
Federal Highway
Revenue Bonds, Series
E-470,
6.900% 08/31/15...... Baa NR $ 1,610,610
2,000,000 Jefferson County,
Colorado, School
District No. R-001,
(AMBAC Insured),
6.000% 12/15/06...... Aaa AAA 2,164,960
------------
3,775,570
------------
CONNECTICUT -- 7.0%
4,000,000 Connecticut State,
Series B, GO,
5.375% 10/01/11...... Aa AA- 4,043,360
Connecticut State
Housing Finance
Authority Revenue,
(Housing Mortgage
Finance Program):
1,980,000 Series A,
6.100% 05/15/13...... Aa AA 2,013,601
2,000,000 Series B,
6.700% 11/15/12...... Aa AA 2,107,180
------------
8,164,141
------------
FLORIDA -- 4.2%
1,000,000 Dade County, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding,
(Baptist Hospital,
Miami Project),
Series A,
(MBIA Insured),
5.250% 05/15/21...... Aaa AAA 971,270
1,000,000 Martin County, Florida,
Industrial
Development Authority
Revenue, AMT,
(Indiantown
Cogeneration
Project), Series A,
7.875% 12/15/25...... Baa3 BBB- 1,145,990
3,000,000 South Broward, Florida,
Hospital District
Revenue Refunding,
5.500% 05/01/28........ A1 A+ 2,852,190
------------
4,969,450
------------
GEORGIA -- 13.1%
4,000,000 Atlanta, Georgia, Urban
Residential Financial
Authority,
Single-family
Mortgage Revenue,
Capital Appreciation,
(AMBAC/FNMA Insured),
Zero coupon
10/01/16+............ Aaa AAA 1,118,960
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE> 303
NATIONS FUND TRUST
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$1,000,000 Metropolitan Atlanta
Rapid Transit
Authority (MARTA),
Georgia, Sales Tax
Revenue Refunding,
Series P, (AMBAC
Insured),
6.100% 07/01/05...... Aaa AAA $ 1,098,900
1,000,000 Monroe County, Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation), Series
A,
6.800% 01/01/11...... A3 A+ 1,144,270
1,000,000 Roswell, Georgia, GO,
5.600% 02/01/10...... Aa AA 1,037,090
Savannah, Georgia,
Hospital Authority,
Revenue Refunding and
Improvement:
2,755,000 (Candler Hospital
Project),
7.000% 01/01/23...... Baa BBB+ 2,846,273
2,000,000 (St. Joseph's Hospital
Project),
6.125% 07/01/12...... A NR 2,070,960
2,690,000 Union County, Georgia,
Housing Authority,
Multi-family Revenue
Refunding, (Hidden
Lake Apartments),
Series A, (FHA/
FNMA Insured),
7.125% 12/01/25...... Aaa NR 2,879,672
3,000,000 White County, Georgia,
Industrial
Development Authority
Revenue Refunding,
(Clark-Schwebel Fiber
Glass Company
Project),
6.850% 06/01/10...... NR BBB+ 3,163,830
------------
15,359,955
------------
ILLINOIS -- 9.1%
1,500,000 Chicago, Illinois,
O'Hare International
Airport, Special
Facilities Revenue
Refunding, (American
Airlines Inc.
Project),
8.200% 12/01/24...... Baa2 BB+ 1,756,080
1,000,000 Illinois Development
Finance Authority,
PCR, Refunding,
(Edison Company
Project), Series D,
(AMBAC Insured),
6.750% 03/01/15...... Aaa AAA 1,109,410
3,000,000 Illinois Health
Facilities Authority
Revenue, (OSF
Healthcare System),
6.000% 11/15/10...... A1 A+ 3,015,510
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$1,500,000 Illinois State Sales
Tax Revenue
Refunding, Series V,
6.375% 06/15/17...... A1 AAA $ 1,601,745
1,000,000 Illinois State Toll
Highway Authority
Revenue, Series A,
(FGIC Insured),
6.200% 01/01/16...... Aaa AAA 1,048,020
Regional Transportation
Authority, Illinois,
Revenue Bonds, Series
A:
1,000,000 (AMBAC Insured),
6.500% 06/01/15...... Aaa AAA 1,076,080
1,000,000 (FGIC Insured),
6.350% 11/01/04...... Aaa AAA 1,094,100
------------
10,700,945
------------
INDIANA -- 6.4%
2,500,000 Franklin, Indiana,
Economic Development
Revenue Refunding,
(Hoover Universal
Inc. Project
Guaranteed),
6.100% 12/01/04...... A2 A 2,650,900
1,000,000 Indiana State Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project), Series
A,
5.750% 09/01/15...... Aa AA- 994,060
2,000,000 Indianapolis, Indiana,
Airport Authority,
Special Facilities
Revenue, (Federal
Express Corporation
Project),
7.100% 01/15/17...... Baa2 BBB 2,154,520
1,700,000 Lawrenceburg, Indiana,
PCR Refunding,
(Indiana Michigan
Power Company
Project), Series E,
5.900% 11/01/19...... Baa2 BBB 1,649,085
------------
7,448,565
------------
KANSAS -- 1.8%
2,000,000 Kansas City, Kansas,
Utilities System
Revenue Refunding and
Improvement,
(FGIC Insured),
6.250% 09/01/14...... Aaa AAA 2,148,920
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
130
<PAGE> 304
NATIONS FUND TRUST
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
LOUISIANA -- 0.8%
$1,000,000 Louisiana Public
Hospital Facilities
Authority, Revenue
Refunding, (Touro
Infirmary Project),
Series A,
6.125% 08/15/23...... Baa BBB $ 949,540
------------
MICHIGAN -- 2.5%
3,000,000 Michigan State Job
Development
Authority, PCR,
(General Motors
Corporation),
5.550% 04/01/09...... A3 A- 2,971,350
------------
NEVADA -- 0.9%
1,000,000 Nevada State, GO,
(Project No.
40-41-A),
6.375% 12/01/17...... NR AA 1,082,720
------------
NEW JERSEY -- 1.9%
2,000,000 North Brunswick
Township, New Jersey,
Unlimited Tax, GO,
6.400% 05/15/08...... Aa NR 2,184,260
------------
OHIO -- 1.7%
1,000,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project),
6.125% 12/01/13...... NR BBB+ 997,300
1,000,000 Ohio State Air Quality
Development
Authority, PCR,
Refunding,
(Ohio Edison
Company), Class A,
5.950% 05/15/29...... Baa2 BBB- 963,510
------------
1,960,810
------------
PENNSYLVANIA -- 6.6%
2,000,000 Lehigh County,
Pennsylvania,
Industrial
Development
Authority, PCR
Refunding,
(Pennsylvania Power
and Light Company
Project), Series A,
(MBIA Insured),
6.400% 11/01/21...... Aaa AAA 2,139,980
1,000,000 Philadelphia,
Pennsylvania, Gas
Works Revenue
Refunding, 14th
Series,
6.250% 07/01/08...... Baa1 BBB 1,046,900
1,975,000 Philadelphia,
Pennsylvania,
Hospital and Higher
Education Facilities
Authority, Hospital
Revenue, (Frankford
Hospital Project),
Series A,
6.000% 06/01/14...... A BBB+ 1,946,817
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PENNSYLVANIA -- (CONTINUED)
$2,500,000 Philadelphia,
Pennsylvania,
Industrial
Development
Authority, Industrial
Development Revenue
Refunding, (Ashland
Oil Inc. Project),
5.700% 06/01/05...... Baa1 NR $ 2,640,775
------------
7,774,472
------------
SOUTH CAROLINA -- 5.3%
2,000,000 South Carolina State
Housing Finance and
Development
Authority,
Homeownership
Mortgage Purchase,
Series A,
6.375% 07/01/16...... Aa AA 2,058,020
2,000,000 Spartanburg County,
South Carolina, Solid
Waste Disposal
Facilities Revenue,
(BMW Project),
7.550% 11/01/24...... NR NR 2,205,920
2,000,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation Project),
AMT,
5.700% 01/01/24...... A2 A+ 1,942,660
------------
6,206,600
------------
TENNESSEE -- 5.7%
2,000,000 Humphreys County,
Tennessee, Industrial
Development Board,
Solid Waste Disposal
Revenue, (duPont
(E.I.) de Nemours &
Company Project),
AMT,
6.700% 05/01/24...... Aa3 AA- 2,119,900
2,500,000 Maury County,
Tennessee, Industrial
Development Board,
PCR, Multi-Modal,
Refunding, (Saturn
Corporation Project),
General Motors
Guaranty Agreement,
6.500% 09/01/24...... A3 BBB+ 2,644,425
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
131
<PAGE> 305
NATIONS FUND TRUST
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSSEE -- (CONTINUED)
$1,750,000 McMinn County,
Tennessee, Industrial
Development Board,
Solid Waste Recycling
Facility Revenue,
(Calhoun Newsprint
Project), AMT,
7.400% 12/01/22...... Baa1 BBB $ 1,909,442
------------
6,673,767
------------
TEXAS -- 8.1%
4,450,000 Alliance Airport
Authority Inc.,
Texas, Special
Facilities Revenue,
(American Airlines
Inc. Project),
7.000% 12/01/11...... Baa2 BB+ 4,874,708
1,000,000 Brazos River Authority,
Texas, Revenue
Refunding, (Houston
Light & Power Company
Project), Series B,
(MBIA Insured),
6.375% 04/01/12...... Aaa AAA 1,077,870
1,500,000 Lubbock, Texas, Health
Facilities
Development
Corporation, Revenue
Refunding, (St.
Joseph Health System
Project),
5.500% 07/01/14...... Aa AA 1,462,455
2,000,000 San Antonio, Texas,
Electricity & Gas
Refunding,
Revenue Bonds,
5.750% 02/01/11...... Aa1 AA 2,045,760
------------
9,460,793
------------
VIRGINIA -- 2.7%
2,000,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco Corporation
Project),
6.650% 09/01/18...... A1 A 2,175,460
1,000,000 Henrico County,
Virginia, Industrial
Development Authority
Revenue, Solid Waste,
(Browning-Ferris
Industries Inc.
Project),
5.300% 12/01/11**.... A2 A 1,001,230
------------
3,176,690
------------
<CAPTION>
RATING
PRINCIPAL (UNAUDITED) VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 5.7%
$2,500,000 Public Industrial
Corporation, Port
Camas-Washougal,
Washington, PCR,
(James River
Project),
6.700% 04/01/23...... NR BBB- $ 2,557,100
Washington State,
Public Power Supply
Systems Revenue
Refunding:
1,000,000 Series A, (Systems
Nuclear Project No.
1), (MBIA Insured),
5.700% 07/01/17...... Aaa AAA 997,480
3,000,000 Series B, (Systems
Nuclear Project No.
3), (FSA Insured),
5.400% 07/01/05...... Aaa AAA 3,108,870
------------
6,663,450
------------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost
$107,517,072)........ 115,722,843
============
<CAPTION>
SHARES
=========
<S> <C> <C> <C>
MONEY MARKET FUND -- 0.8%
(Cost $956,523)
956,523 AIM Tax-Exempt Fund............ 956,523
============
TOTAL INVESTMENTS
(Cost $108,473,595*)...................... 99.5% 116,679,366
OTHER ASSETS AND LIABILITIES
(NET)..................................... 0.5 552,959
------ ------------
NET ASSETS.................................. 100.0% $117,232,325
====== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When issued security (see Note 1).
+ Yield to maturity is 10.750%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Federal Security Assurance
GO General Obligation Bonds
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
132
<PAGE> 306
(This Page Intentionally Left Blank)
133
<PAGE> 307
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
FLORIDA NATIONS GEORGIA NATIONS
INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
----------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1),
See accompanying schedules...................... $50,547,199 $37,877,427 $59,191,834 $15,306,159
Cash.............................................. 784 577 514 55
Interest receivable............................... 870,521 613,980 1,166,600 311,914
Dividends receivable.............................. 754 2,045 596 805
Receivable for Fund shares sold................... 168,804 100,511 223,599 158,244
Receivable from investment adviser (Note 2)....... -- -- -- --
Unamortized organization costs (Note 6)........... 11,724 1,500 6,131 1,500
Other assets...................................... -- -- -- --
----------- ----------- ----------- -----------
Total Assets.................................... 51,599,786 38,596,040 60,589,274 15,778,677
----------- ----------- ----------- -----------
LIABILITIES:
Payable for Fund shares redeemed.................. 5,696 2,900 37,672 --
Investment advisory fee payable (Note 2).......... 1,383 8,953 5,847 1,890
Administration fee payable (Note 2)............... 2,096 1,555 2,465 628
Shareholder servicing and distribution fees
payable (Note 3)................................ 2,415 15,815 5,913 7,867
Transfer agent fees payable (Note 2).............. 5,638 4,414 6,482 2,340
Custodian fees payable (Note 2)................... 809 -- 953 --
Dividends payable................................. 177,493 96,653 180,460 27,664
Accrued Trustees' fees and expenses (Note 2)...... 373 273 432 106
Accrued expenses and other payables............... 21,969 22,432 24,112 17,166
----------- ----------- ----------- -----------
Total Liabilities............................... 217,872 152,995 264,336 57,661
----------- ----------- ----------- -----------
NET ASSETS........................................ $51,381,914 $38,443,045 $60,324,938 $15,721,016
=========== =========== =========== ===========
Investments, at cost.............................. $48,229,048 $36,136,573 $56,501,434 $14,785,014
=========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
134
<PAGE> 308
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA NATIONS SOUTH CAROLINA NATIONS
INTERMEDIATE MARYLAND INTERMEDIATE NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$89,507,751 $13,414,026 $ 38,070,772 $ 31,161,849 $ 70,806,489 $ 15,480,393
942 179 614 449 281 837
1,715,378 232,863 665,622 580,424 1,135,422 268,467
1,383 1,636 799 393 1,329 656
52,782 21,270 46,250 30,789 13,548 11,113
-- 3,723 -- -- -- --
-- 2,376 4,877 1,500 12,381 1,792
12,414 -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
91,290,650 13,676,073 38,788,934 31,775,404 71,969,450 15,763,258
----------- ----------- ----------- ----------- ----------- -----------
19,562 -- 3,000 300 490 --
11,639 -- 4,992 6,721 11,225 2,909
3,726 532 1,577 1,287 2,931 632
6,446 6,047 5,174 18,310 7,265 7,899
9,247 2,104 4,488 3,814 7,491 2,368
1,235 -- 693 -- 1,021 --
250,805 17,721 93,083 34,868 224,042 22,440
657 90 279 226 520 111
26,254 19,093 20,444 19,048 22,223 16,775
----------- ----------- ----------- ----------- ----------- -----------
329,571 45,587 133,730 84,574 277,208 53,134
----------- ----------- ----------- ----------- ----------- -----------
$90,961,079 $13,630,486 $ 38,655,204 $ 31,690,830 $ 71,692,242 $ 15,710,124
=========== =========== ============= ============= ============= =============
$85,983,939 $12,916,594 $ 36,392,883 $ 29,964,714 $ 68,105,986 $ 14,908,298
=========== =========== ============= ============= ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
135
<PAGE> 309
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
--------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Note 1)
See accompanying schedules.......................... $18,491,789 $7,494,760 $30,446,957
Cash.................................................. 204 547 230
Interest receivable................................... 290,196 112,270 524,890
Dividends receivable.................................. 2,033 506 720
Receivable for Fund shares sold....................... 62,721 -- 21,468
Receivable for investment securities sold............. -- 364,851 1,138,339
Unamortized organization costs (Note 6)............... 4,757 2,430 2,588
----------- ---------- -----------
Total Assets........................................ 18,851,700 7,975,364 32,135,192
----------- ---------- -----------
LIABILITIES:
Payable for Fund shares redeemed...................... -- -- 1,011
Payable for investment securities purchased........... 478,698 287,219 1,106,257
Investment advisory fee payable (Note 2).............. 3,186 247 4,287
Administration fee payable (Note 2)................... 741 309 1,261
Shareholder servicing and distribution fees payable
(Note 3)............................................ 2,694 4,109 1,653
Transfer agent fees payable (Note 2).................. 2,597 1,639 3,763
Custodian fees payable (Note 2)....................... 458 -- 638
Dividends payable..................................... 33,750 10,009 103,500
Accrued Trustees' fees and expenses (Note 2).......... 130 55 221
Accrued expenses and other payables................... 21,818 17,718 18,082
----------- ---------- -----------
Total Liabilities................................... 544,072 8 321,305 1,240,673
----------- ---------- -----------
NET ASSETS............................................ $18,307,628 $7,654,059 $30,894,519
=========== ========== ===========
Investments, at cost.................................. $17,904,937 $7,128,455 $29,457,222
=========== ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
136
<PAGE> 310
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS NATIONS NATIONS
TEXAS INTERMEDIATE VIRGINIA SHORT-TERM INTERMEDIATE NATIONS
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND INCOME FUND BOND FUND INCOME FUND
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$17,914,424 $247,082,780 $21,121,347 $66,486,103 $75,713,769 $116,679,366
755 519 421 526 910 --
320,909 4,020,185 266,332 1,399,743 1,471,602 2,125,958
1,060 2,530 2,353 1,471 1,288 5,499
300 153,377 58,624 90,690 7,768 40,253
-- 5,072,413 -- -- -- --
3,269 -- 1,500 23,923 24,422 --
----------- ----------- ----------- ----------- ----------- ------------
18,240,717 256,331,804 21,450,577 68,002,456 77,219,759 118,851,076
----------- ----------- ----------- ----------- ----------- ------------
-- 211,860 -- 6,051 -- 115,804
553,129 5,396,352 681,539 2,224,275 -- 1,000,883
1,948 88,046 2,350 46,024 18,267 40,499
718 10,265 837 2,710 3,130 4,765
7,797 19,653 10,198 3,783 849 17,003
2,542 24,000 2,785 7,428 7,978 11,524
-- 3,053 -- -- 1,085 1,473
35,565 713,839 35,375 187,179 293,133 392,119
125 1,830 143 509 553 837
17,177 43,139 18,368 66,152 37,611 33,844
----------- ------------ ----------- ----------- ----------- ------------
619,001 6,512,037 751,595 2,544,111 362,606 1,618,751
----------- ------------ ----------- ----------- ----------- ------------
$17,621,716 $249,819,767 $20,698,982 $65,458,345 $76,857,153 $117,232,325
=========== ============ =========== =========== =========== ============
$16,917,984 $234,711,549 $20,347,254 $65,298,898 $72,356,014 $108,473,595
=========== ============ =========== =========== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
137
<PAGE> 311
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
FLORIDA NATIONS GEORGIA NATIONS
INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
-----------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income/(distributions in excess of net
investment income)........................... $ (3,525) $ 6,617 $ (4,550) $ --
Accumulated net realized loss on investments
sold......................................... (1,127,808) (885,682) (379,207) (403,976)
Net unrealized appreciation of investments..... 2,318,151 1,740,854 2,690,400 521,145
Paid-in capital................................ 50,195,096 37,581,256 58,018,295 15,603,847
----------- ----------- ----------- -----------
$51,381,914 $38,443,045 $60,324,938 $15,721,016
=========== =========== =========== ===========
NET ASSETS:
Trust A Shares................................. $44,038,090 $11,219,190 $40,382,894 $ 2,628,238
=========== =========== =========== ===========
Investor A Shares.............................. $ 2,292,009 $ 1,787,227 $ 9,175,379 $ 6,522
=========== =========== =========== ===========
Investor C Shares.............................. $ 276,656 $ 38,450 $ 2,606,189 $ 69,293
=========== =========== =========== ===========
Investor N Shares.............................. $ 4,775,159 $25,398,178 $ 8,160,476 $13,016,963
=========== =========== =========== ===========
SHARES OUTSTANDING:
Trust A Shares................................. 4,143,960 1,149,713 3,734,829 270,389
=========== =========== =========== ===========
Investor A Shares.............................. 215,686 183,149 848,557 671
=========== =========== =========== ===========
Investor C Shares.............................. 26,033 3,940 241,033 7,129
=========== =========== =========== ===========
Investor N Shares.............................. 449,334 2,602,770 754,712 1,339,150
=========== =========== =========== ===========
TRUST A SHARES:
Net asset value, offering price and redemption
price per share.............................. $10.63 $ 9.76 $10.81 $ 9.72
====== ====== ====== ======
INVESTOR A SHARES:
Net asset value and redemption price per
share........................................ $10.63 $ 9.76 $10.81 $ 9.72
====== ====== ====== ======
Maximum sales charge........................... 3.25% 4.25% 3.25% 4.25%
Maximum offering price per share............... $10.99 $10.19 $11.17 $10.15
====== ====== ====== ======
INVESTOR C SHARES:
Net asset value and offering price per
share*....................................... $10.63 $ 9.76 $10.81 $ 9.72
====== ====== ====== ======
INVESTOR N SHARES:
Net asset value and offering price per
share*....................................... $10.63 $ 9.76 $10.81 $ 9.72
====== ====== ====== ======
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
138
<PAGE> 312
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA NATIONS SOUTH CAROLINA NATIONS
INTERMEDIATE MARYLAND INTERMEDIATE NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 28,863 $ 2,074 $ 4,391 $ 1,224 $ 28 $ --
(1,047,530) (36,096) (330,911) (787,112) (440,249) (72,007)
3,523,812 497,432 1,677,889 1,197,135 2,700,503 572,095
88,455,934 13,167,076 37,303,835 31,279,583 69,431,960 15,210,036
----------- ----------- ------------- ------------- ------------- -------------
$90,961,079 $13,630,486 $38,655,204 $31,690,830 $71,692,242 $15,710,124
=========== =========== ============= ============= ============= =============
$62,460,280 $ 2,595,000 $20,916,366 $ 1,293,414 $45,255,039 $ 1,781,711
=========== =========== ============= ============= ============= =============
$21,208,042 $ 1,030,995 $ 8,524,686 $ 347,357 $14,452,467 $ 1,238,495
=========== =========== ============= ============= ============= =============
$ 2,808,082 $ 2,397 $ 1,366,362 $ 2,422 $ 5,527,268 $ 19,521
=========== =========== ============= ============= ============= =============
$ 4,484,675 $10,002,094 $ 7,847,790 $30,047,637 $ 6,457,468 $12,670,397
=========== =========== ============= ============= ============= =============
5,706,085 269,515 1,990,364 132,963 4,232,778 178,314
=========== =========== ============= ============= ============= =============
1,937,474 107,082 811,190 35,708 1,351,752 123,945
=========== =========== ============= ============= ============= =============
256,531 249 130,018 249 516,969 1,954
=========== =========== ============= ============= ============= =============
409,688 1,038,837 746,767 3,088,844 603,970 1,268,017
=========== =========== ============= ============= ============= =============
$10.95 $ 9.63 $10.51 $ 9.73 $10.69 $ 9.99
====== ====== ======== ======== ======== ========
$10.95 $ 9.63 $10.51 $ 9.73 $10.69 $ 9.99
====== ====== ======== ======== ======== ========
3.25% 4.25% 3.25% 4.25% 3.25% 4.25%
$11.32 $10.06 $10.86 $10.16 $11.05 $10.43
====== ====== ======== ======== ======== ========
$10.95 $ 9.63 $10.51 $ 9.73 $10.69 $ 9.99
====== ====== ======== ======== ======== ========
$10.95 $ 9.63 $10.51 $ 9.73 $10.69 $ 9.99
====== ====== ======== ======== ======== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
139
<PAGE> 313
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
----------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income/(distributions in excess of
net investment income)........................................ $ (487) $ 3,145 $ (1,938)
Accumulated net realized loss on investments sold............... (307,628) (221,718) (1,076,108)
Net unrealized appreciation of investments...................... 586,852 366,305 989,735
Paid-in capital................................................. 18,028,891 7,506,327 30,982,830
----------- ---------- -----------
$18,307,628 $7,654,059 $30,894,519
=========== ========== ===========
NET ASSETS:
Trust A Shares.................................................. $ 7,159,984 $ 768,346 $26,381,996
=========== ========== ===========
Investor A Shares............................................... $ 7,572,594 $ 203,079 $ 806,304
=========== ========== ===========
Investor C Shares............................................... $ 2,281 $ 63,770 $ 569,972
=========== ========== ===========
Investor N Shares............................................... $ 3,572,769 $6,618,864 $ 3,136,247
=========== ========== ===========
SHARES OUTSTANDING:
Trust A Shares.................................................. 699,673 77,886 2,547,215
=========== ========== ===========
Investor A Shares............................................... 740,009 20,585 77,851
=========== ========== ===========
Investor C Shares............................................... 223 6,464 55,031
=========== ========== ===========
Investor N Shares............................................... 349,138 670,933 302,809
=========== ========== ===========
TRUST A SHARES:
Net asset value, offering price and redemption price per
share......................................................... $10.23 $ 9.87 $10.36
====== ====== ======
INVESTOR A SHARES:
Net asset value and redemption price per share.................. $10.23 $ 9.87 $10.36
====== ====== ======
Maximum sales charge............................................ 3.25% 4.25% 3.25%
Maximum offering price per share................................ $10.57 $10.31 $10.71
====== ====== ======
INVESTOR C SHARES:
Net asset value and offering price per share*................... $10.23 $ 9.87 $10.36
====== ====== ======
INVESTOR N SHARES:
Net asset value and offering price per share*................... $10.23 $ 9.87 $10.36
====== ====== ======
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
140
<PAGE> 314
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS NATIONS NATIONS
TEXAS INTERMEDIATE VIRGINIA SHORT-TERM INTERMEDIATE NATIONS
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND INCOME FUND BOND FUND INCOME FUND
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 6,027 $ 138,617 $ -- $ 947 $ 25,134 $ 12,961
(814,474) (2,072,660) (621,016) (731,392) (406,593) (4,600,280)
996,440 12,371,231 774,093 1,187,205 3,357,755 8,205,771
17,433,723 239,382,579 20,545,905 65,001,585 73,880,857 113,613,873
----------- ------------ ----------- ----------- ----------- ------------
$17,621,716 $249,819,767 $20,698,982 $65,458,345 $76,857,153 $117,232,325
=========== ============ =========== =========== =========== ============
$ 4,612,870 $157,252,317 $ 3,526,641 $49,961,113 $73,897,093 $ 68,836,109
=========== ============ =========== =========== =========== ============
$ 351,297 $ 73,252,989 $ 649,973 $ 3,740,804 $ 1,248,746 $ 27,963,306
=========== ============ =========== =========== =========== ============
$ 70,321 $ 7,151,706 $ 33,535 $ 1,953,305 $ 359,077 $ 2,267,653
=========== ============ =========== =========== =========== ============
$12,587,228 $ 12,162,755 $16,488,833 $ 9,803,123 $ 1,352,237 $ 18,165,257
=========== ============ =========== =========== =========== ============
475,499 14,514,712 366,526 4,980,383 7,265,050 6,210,344
=========== ============ =========== =========== =========== ============
36,212 6,761,297 67,552 372,913 122,748 2,522,806
=========== ============ =========== =========== =========== ============
7,248 660,109 3,485 194,715 35,302 204,585
=========== ============ =========== =========== =========== ============
1,297,490 1,122,632 1,713,670 977,224 132,942 1,638,834
=========== ============ =========== =========== =========== ============
$ 9.70 $10.83 $ 9.62 $10.03 $10.17 $11.08
====== ====== ====== ====== ====== ======
$ 9.70 $10.83 $ 9.62 $10.03 $10.17 $11.08
====== ====== ====== ====== ====== ======
4.25% 3.25% 4.25% 1.50% 3.25% 4.25%
$10.13 $11.19 $10.05 $10.18 $10.51 $11.57
====== ====== ====== ====== ====== ======
$ 9.70 $10.83 $ 9.62 $10.03 $10.17 $11.08
====== ====== ====== ====== ====== ======
$ 9.70 $10.83 $ 9.62 $10.03 $10.17 $11.08
====== ====== ====== ====== ====== ======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
141
<PAGE> 315
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
FLORIDA NATIONS GEORGIA NATIONS
INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
-----------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest....................................... $ 2,618,218 $1,913,438 $ 3,009,748 $ 698,769
Dividends...................................... 19,736 24,185 18,652 13,827
------------ ---------- ------------ ----------
Total investment income................... 2,637,954 1,937,623 3,028,400 712,596
------------ ---------- ------------ ----------
EXPENSES:
Investment advisory fee (Note 2)............... 250,706 199,530 284,974 73,427
Administration fee (Note 2).................... 49,425 32,872 56,219 12,096
Transfer agent fees (Note 2)................... 32,561 26,654 36,437 11,744
Custodian fees (Note 2)........................ 10,055 8,105 10,820 5,549
Legal and audit fees........................... 20,509 20,363 25,139 16,629
Trustees' fees and expenses (Note 2)........... 955 669 1,077 245
Amortization of organization costs (Note 6).... 5,766 500 3,656 500
Registration and filing fees................... 1,114 9,363 3,428 4,055
Interest expense (Note 7)...................... 1,931 129 1,507 239
Other.......................................... 32,234 16,468 34,326 9,282
------------ ---------- ------------ ----------
Subtotal.................................. 405,256 314,653 457,583 133,766
Shareholder servicing and distribution fees
(Note 3):
Investor A Shares............................ 4,198 3,021 20,573 13
Investor C Shares............................ 1,436 182 12,823 270
Investor N Shares............................ 23,484 174,654 38,810 84,678
Fees waived by investment adviser,
administrator and/or custodian (Note 2)...... (126,412) (185,241) (141,434) (84,848)
------------ ---------- ------------ ----------
Total expenses............................ 307,962 307,269 388,355 133,879
------------ ---------- ------------ ----------
NET INVESTMENT INCOME.......................... 2,329,992 1,630,354 2,640,045 578,717
------------ ---------- ------------ ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS (NOTES 1 AND 4):
Net realized loss on investments sold
during the year.............................. (715,767) (129,557) (17,607) (146,210)
Net change in unrealized
appreciation/(depreciation) of investments
during the year.............................. 5,736,744 4,716,846 5,456,008 1,855,998
------------ ---------- ------------ ----------
Net realized and unrealized gain on
investments.................................. 5,020,977 4,587,289 5,438,401 1,709,788
------------ ---------- ------------ ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.............................. $ 7,350,969 $6,217,643 $ 8,078,446 $2,288,505
=========== ========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
142
<PAGE> 316
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA NATIONS SOUTH CAROLINA NATIONS
INTERMEDIATE MARYLAND INTERMEDIATE NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 4,612,158 $ 503,554 $1,807,123 $1,696,448 $ 4,055,757 $ 719,813
29,534 13,881 21,111 18,452 21,010 15,335
----------- ---------- ---------- ---------- ----------- ----------
4,641,692 517,435 1,828,234 1,714,900 4,076,767 735,148
----------- ---------- ---------- ---------- ----------- ----------
436,564 56,020 181,351 177,225 372,578 75,568
86,092 9,249 35,722 29,151 73,426 12,454
55,505 9,476 24,622 24,762 38,761 11,338
14,878 6,158 8,627 7,757 12,744 5,736
30,819 16,054 19,141 19,341 19,122 16,633
1,670 198 1,499 573 1,393 257
3,587 800 2,399 500 7,205 601
16,734 5,079 10,734 7,103 -- 5,215
2,765 -- 1,300 380 5,814 202
50,106 14,461 17,798 17,016 27,255 8,432
----------- ---------- ---------- ---------- ----------- ----------
698,720 117,495 303,193 283,808 558,298 136,436
42,880 1,205 17,214 1,530 31,815 850
13,177 17 7,248 103 28,757 27
22,102 52,328 34,834 207,955 30,676 80,631
(213,741) (80,320) (96,194) (172,996) (146,305) (86,375)
----------- ---------- ---------- ---------- ----------- ----------
563,138 90,725 266,295 320,400 503,241 131,569
----------- ---------- ---------- ---------- ----------- ----------
4,078,554 426,710 1,561,939 1,394,500 3,573,526 603,579
----------- ---------- ---------- ---------- ----------- ----------
(681,489) (2,430) (307,810 (399,443) (136,623) (39,660)
8,733,915 1,165,404 3,867,311 4,722,309 6,872,223 1,704,426
----------- ---------- ---------- ---------- ----------- ----------
8,052,426 1,162,974 3,559,501 4,322,866 6,735,600 1,664,766
----------- ---------- ---------- ---------- ----------- ----------
$12,130,980 $1,589,684 $5,121,440 $5,717,366 $10,309,126 $2,268,345
=========== ========== ========== ========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
143
<PAGE> 317
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
-------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................................... $ 861,112 $ 388,968 $ 1,470,846
Dividends................................................... 16,038 5,957 19,124
----------- ---------- -----------
Total investment income................................ 877,150 394,925 1,489,970
----------- ---------- -----------
EXPENSES:
Investment advisory fee (Note 2)............................ 83,998 40,270 143,571
Administration fee (Note 2)................................. 16,576 6,628 28,316
Transfer agent fees (Note 2)................................ 13,948 7,371 19,061
Custodian fees (Note 2)..................................... 5,080 3,840 7,136
Legal and audit fees........................................ 17,237 15,797 19,506
Trustees' fees and expenses (Note 2)........................ 308 138 518
Amortization of organization costs (Note 6)................. 1,989 819 1,242
Registration and filing fees................................ 1,867 3,469 575
Interest expense (Note 7)................................... 87 216 843
Other....................................................... 13,008 6,935 17,554
----------- ---------- -----------
Subtotal............................................... 154,098 85,483 238,322
Shareholder servicing and distribution fees (Note 3):
Investor A Shares......................................... 15,683 216 1,638
Investor C Shares......................................... 11 364 2,216
Investor N Shares......................................... 17,478 46,226 15,692
Fees waived by investment adviser, administrator
and/or custodian (Note 2)................................. (58,668) (58,714) (74,646)
----------- ---------- -----------
Total expenses......................................... 128,602 73,575 183,222
----------- ---------- -----------
NET INVESTMENT INCOME....................................... 748,548 321,350 1,306,748
----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
year...................................................... (26,134) (117,288) (212,078)
Net change in unrealized appreciation/(depreciation) of
investments during the year............................... 1,581,769 1,007,264 2,582,038
----------- ---------- -----------
Net realized and unrealized gain on investments............. 1,555,635 889,976 2,369,960
----------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................................... $ 2,304,183 $1,211,326 $ 3,676,708
=========== ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
144
<PAGE> 318
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS NATIONS NATIONS
TEXAS INTERMEDIATE VIRGINIA SHORT-TERM INTERMEDIATE NATIONS
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND INCOME FUND BOND FUND INCOME FUND
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 887,526 $13,784,825 $1,019,126 $2,824,624 $3,622,370 $ 6,731,598
16,157 35,963 14,209 26,475 41,855 49,193
---------- ------------ ---------- ---------- ---------- ------------
903,683 13,820,788 1,033,335 2,851,099 3,664,225 6,780,791
---------- ------------ ---------- ---------- ---------- ------------
92,728 1,271,366 105,003 295,327 341,317 652,961
15,261 250,576 17,292 58,396 67,462 107,333
14,043 155,184 16,601 38,764 40,924 74,245
5,742 36,154 6,322 12,607 12,865 17,764
16,943 57,795 17,225 23,103 26,155 30,688
300 4,737 346 1,217 1,342 2,045
1,106 -- 500 8,355 9,158 494
4,566 10,411 5,121 78,165 43,032 26,736
266 4,734 137 2,252 1,033 2,301
11,317 99,849 12,770 32,514 28,243 40,119
---------- ------------ ---------- ---------- ---------- ------------
162,272 1,890,806 181,317 550,700 571,531 954,686
311 151,365 810 4,237 1,714 51,257
29 38,399 61 2,660 662 19,872
89,464 55,284 111,655 37,488 5,868 136,830
(101,213) (449,752) (112,299) (285,030) (260,200) (297,941)
---------- ------------ ---------- ---------- ---------- ------------
150,863 1,686,102 181,544 310,055 319,575 864,704
---------- ------------ ---------- ----------- ---------- ------------
752,820 12,134,686 851,791 2,541,044 3,344,650 5,916,087
---------- ------------ ---------- ---------- ---------- ------------
49,758 (1,699,659) (54,480) (299,414) (146,486) (742,720)
2,069,817 23,698,770 2,493,836 2,164,389 6,426,385 15,694,163
---------- ------------ ---------- ---------- ---------- ------------
2,119,575 21,999,111 2,439,356 1,864,975 6,279,899 14,951,443
---------- ------------ ---------- ---------- ---------- ------------
$2,872,395 $ 34,133,797 $3,291,147 $ 4,406,019 $9,624,549 $ 20,867,530
========== ============ ========== =========== ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
145
<PAGE> 319
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
FLORIDA NATIONS GEORGIA NATIONS
INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
--------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income.............................. $ 2,329,992 $ 1,630,354 $ 2,640,045 $ 578,717
Net realized loss on investments................... (715,767) (129,557) (17,607) (146,210)
Change in unrealized appreciation/(depreciation) of
investments...................................... 5,736,744 4,716,846 5,456,008 1,855,998
----------- ----------- ----------- -----------
Net increase in net assets resulting from
operations....................................... 7,350,969 6,217,643 8,078,446 2,288,505
Distributions to shareholders from net investment
income:
Trust A Shares................................ (2,024,302) (455,981) (1,728,590) (45,414)
Investor A Shares............................. (95,935) (79,195) (471,583) (346)
Investor C Shares............................. (12,415) (1,076) (109,319) (1,560)
Investor N Shares............................. (197,340) (1,094,102) (330,711) (531,397)
Distributions in excess of net investment income:
Trust A Shares................................ -- -- -- --
Investor A Shares............................. -- -- -- --
Investor C Shares............................. -- -- -- --
Investor N Shares............................. -- -- -- --
Distributions to shareholders from net realized
gain on investments:
Trust A Shares................................ -- -- -- --
Investor A Shares............................. -- -- -- --
Investor C Shares............................. -- -- -- --
Investor N Shares............................. -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Trust A Shares................................ (2,979,948) 5,919,508 3,825,979 2,277,258
Investor A Shares............................. (39,072) 563,238 (2,238,132) (170)
Investor C Shares............................. (368,088) 34,293 (34,367) 64,515
Investor N Shares............................. (388,191) 2,187,184 154,765 1,930,805
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets.............. 1,245,678 13,291,512 7,146,488 5,982,196
NET ASSETS:
Beginning of year.................................. 50,136,236 25,151,533 53,178,450 9,738,820
----------- ----------- ----------- -----------
End of year........................................ $51,381,914 $38,443,045 $60,324,938 $15,721,016
=========== =========== =========== ===========
Undistributed net investment income/(distributions
in excess of net investment income) at end of
year............................................. $ (3,525) $ 6,617 $ (4,550) $ --
=========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
146
<PAGE> 320
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA NATIONS SOUTH CAROLINA NATIONS
INTERMEDIATE MARYLAND INTERMEDIATE NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 4,078,554 $ 426,710 $ 1,561,939 $ 1,394,500 $ 3,573,526 $ 603,579
(681,489) (2,430) (307,810) (399,443) (136,623) (39,660)
8,733,915 1,165,404 3,867,311 4,722,309 6,872,223 1,704,426
----------- ----------- ----------- ---------- ---------- ----------
12,130,980 1,589,684 5,121,440 5,717,366 10,309,126 2,268,345
(2,797,941) (89,148) (856,502) (48,451) (2,296,902) (75,100)
(979,724) (28,392) (372,174) (41,126) (750,209) (21,133)
(112,491) (99) (57,764) (646) (254,974) (163)
(188,577) (309,071) (275,499) (1,304,277) (271,441) (507,183)
-- -- (45) -- -- --
-- -- (21) -- -- --
-- -- (3) -- -- --
-- -- (17) -- -- --
(183,741) -- (21,344) -- -- --
(63,714) -- (8,440) -- -- --
(7,723) -- (1,416) -- -- --
(13,237) -- (5,442) -- -- --
(4,098,933) 2,347,528 4,927,881 641,588 (7,959,146) 1,223,037
(2,885,042) 968,142 (1,261,429) (987,121) (3,395,992) 1,050,535
12,692 99 (267,670) (361) (1,172,672) 17,026
(284,476) 4,282,409 1,498,066 2,361,368 169,959 2,949,577
----------- ----------- ----------- ----------- ----------- -----------
528,073 8,761,152 8,419,621 6,338,340 (5,622,251) 6,904,941
90,433,006 4,869,334 30,235,583 25,352,490 77,314,493 8,805,183
=========== =========== =========== =========== =========== ===========
$90,961,079 $13,630,486 $38,655,204 $31,690,830 $71,692,242 $15,710,124
=========== =========== =========== =========== =========== ===========
$ 28,863 $ 2,074 $ 4,391 $ 1,224 $ 28 $ --
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
147
<PAGE> 321
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------------------------------------
<S> <C> <C> <C>
Net investment income.......................................... $ 748,548 $ 321,350 $ 1,306,748
Net realized gain/(loss) on investments........................ (26,134) (117,288) (212,078)
Change in unrealized appreciation/(depreciation) of
investments.................................................. 1,581,769 1,007,264 2,582,038
----------- ---------- -----------
Net increase in net assets resulting from operations........... 2,304,183 1,211,326 3,676,708
Distributions to shareholders from net investment income:
Trust A Shares............................................ (252,687) (19,802) (1,123,434)
Investor A Shares......................................... (350,278) (5,514) (36,160)
Investor C Shares......................................... (89) (2,207) (18,041)
Investor N Shares......................................... (145,494) (293,827) (129,113)
Distributions to shareholders from net realized gain on
investments:
Trust A Shares............................................ -- -- --
Investor A Shares......................................... -- -- --
Investor C Shares......................................... -- -- --
Investor N Shares......................................... -- -- --
Net increase/(decrease) in net assets from Fund share
transactions:
Trust A Shares............................................ 2,575,285 412,513 300,601
Investor A Shares......................................... (1,008,586) 148,922 21,754
Investor C Shares......................................... 89 56,740 540,523
Investor N Shares......................................... (131,554) 286,121 101,543
----------- ---------- -----------
Net increase/(decrease) in net assets.......................... 2,990,869 1,794,272 3,334,381
NET ASSETS:
Beginning of year.............................................. 15,316,759 5,859,787 27,560,138
----------- ---------- -----------
End of year.................................................... $18,307,628 $7,654,059 $30,894,519
=========== ========== ===========
Undistributed net investment income/(distributions in excess of
net investment income) at end of year........................ $ (487) $ 3,145 $ (1,938)
=========== ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
148
<PAGE> 322
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS NATIONS NATIONS
TEXAS INTERMEDIATE VIRGINIA SHORT-TERM INTERMEDIATE NATIONS
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND INCOME FUND BOND FUND INCOME FUND
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 752,820 $ 12,134,686 $ 851,791 $ 2,541,044 $ 3,344,650 $ 5,916,087
49,758 (1,699,659) (54,480) (299,414) (146,486) (742,720)
2,069,817 23,698,770 2,493,836 2,164,389 6,426,385 15,694,163
----------- ------------ ----------- ----------- ----------- ------------
2,872,395 34,133,797 3,291,147 4,406,019 9,624,549 20,867,530
(182,458) (7,767,991) (118,613) (1,978,655) (3,246,919) (3,504,155)
(7,918) (3,531,818) (20,940) (86,029) (41,053) (1,391,290)
(128) (336,385) (349) (42,850) (5,747) (130,542)
(562,316) (481,064) (711,889) (433,510) (50,931) (890,100)
-- (46,487) -- -- -- --
-- (22,606) -- -- -- --
-- (2,345) -- -- -- --
-- (2,943) -- -- -- --
1,898,179 (23,849,129) 2,855,091 15,057,172 29,750,017 1,027,823
274,086 (12,819,886) 432,416 3,470,015 1,005,279 680,384
67,369 (1,890,560) 30,349 1,599,897 348,117 (1,179,683)
108,166 1,558,927 1,602,073 (3,983,071) 301,923 (1,445,764)
----------- ------------ ----------- ----------- ----------- ------------
4,467,375 (15,058,490) 7,359,285 18,008,988 37,685,235 14,034,203
13,154,341 264,878,257 13,339,697 47,449,357 39,171,918 103,198,122
----------- ------------ ----------- ----------- ----------- ------------
$17,621,716 $249,819,767 $20,698,982 $65,458,345 $76,857,153 $117,232,325
=========== ============ =========== =========== =========== ============
$ 6,027 $ 138,617 $ -- $ 947 $ 25,134 $ 12,961
=========== ============ =========== =========== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
149
<PAGE> 323
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1994
<TABLE>
<CAPTION>
NATIONS NATIONS
FLORIDA NATIONS GEORGIA NATIONS
INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
-----------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income.................................. $ 2,254,980 $ 1,059,933 $ 2,554,766 $ 430,793
Net realized gain/(loss) on investments................ (412,041) (749,508) (361,600) (249,836)
Net change in unrealized depreciation of investments... (4,145,480) (2,757,828) (4,958,051) (1,273,260)
----------- ----------- ----------- -----------
Net decrease in net assets resulting from operations... (2,302,541) (2,447,403) (2,764,885) (1,092,303)
Distributions to shareholders from net investment
income:
Trust A Shares.................................... (1,956,346) (113,896) (1,543,057) (6,137)
Investor A Shares................................. (93,863) (37,913) (623,686) (373)
Investor C Shares................................. (28,279) (8) (120,269) (8)
Investor N Shares................................. (176,492) (908,116) (267,754) (424,275)
Distributions in excess of net investment income:
Trust A Shares.................................... (3,058) -- (2,459) --
Investor A Shares................................. (246) -- (1,319) --
Investor C Shares................................. (165) -- (251) --
Investor N Shares................................. (56) -- (363) --
Distributions to shareholders from net realized gain on
investments:
Trust A Shares.................................... (20,904) -- (49,571) --
Investor A Shares................................. (1,685) -- (26,572) --
Investor C Shares................................. (1,126) -- (5,064) --
Investor N Shares................................. (383) -- (7,305) --
Distributions in excess of net realized gain on
investments:
Trust A Shares.................................... -- -- -- --
Investor A Shares................................. -- -- -- --
Investor C Shares................................. -- -- -- --
Investor N Shares................................. -- -- -- --
Net increase/(decrease) in net assets from Fund share
transactions:
Trust A Shares.................................... 5,148,462 4,608,418 5,570,807 254,222
Investor A Shares................................. 43,476 1,129,724 (5,059,425) 8,638
Investor C Shares................................. (2,574) 2,008 (318,919) 2,008
Investor N Shares................................. 1,770,471 11,484,527 3,412,666 6,177,448
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets.................. 2,374,691 13,717,341 (1,807,426) 4,919,220
NET ASSETS:
Beginning of year...................................... 47,761,545 11,434,192 54,985,876 4,819,600
----------- ----------- ----------- -----------
End of year............................................ $50,136,236 $25,151,533 $53,178,450 $ 9,738,820
----------- ----------- ----------- -----------
Undistributed net investment income/(distributions in
excess of net investment income) at end of year...... $ (3,525) $ -- $ (4,392) $ --
----------- ----------- ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
150
<PAGE> 324
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA NATIONS SOUTH CAROLINA NATIONS
INTERMEDIATE MARYLAND INTERMEDIATE NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 4,442,616 $ 185,783 $ 1,284,133 $ 1,037,488 $ 4,255,438 $ 362,103
(90,050) (31,386) 18,380 (373,405) (295,874) (27,930)
(9,208,784) (613,834) (2,700,595) (3,427,936) (7,310,075) (1,092,116)
------------ ---------- ------------ ------------ ------------ ------------
(4,856,218) (459,437) (1,398,082) (2,763,853) (3,350,511) (757,943)
(3,044,453) (308) (577,630) (8,772) (2,779,062) (12,354)
(1,081,440) (497) (444,310) (61,913) (913,393) (6,291)
(145,838) (8) (59,909) (8) (328,508) (8)
(170,885) (184,970) (202,284) (966,795) (234,475) (343,450)
-- -- -- -- (4,908) --
-- -- -- -- (1,715) --
-- -- -- -- (731) --
-- -- -- -- (370) --
(533,833) -- (58,870) -- (49,192) --
(198,017) -- (50,965) -- (17,190) --
(37,890) -- (7,765) -- (7,328) --
(28,640) -- (20,630) -- (3,713) --
(5,066) -- -- -- -- --
(1,879) -- -- -- -- --
(360) -- -- -- -- --
(272) -- -- -- -- --
6,616,819 40,327 3,587,881 559,907 (3,010,053) 437,120
2,472,579 4,754 (3,952,311) 270,849 (2,001,960) 144,376
(1,471,821) 2,008 38,695 2,008 (1,708,432) 2,008
1,566,176 2,413,010 2,404,561 15,840,879 2,150,636 5,279,691
------------ ---------- ------------ ------------ ------------ ------------
(921,038) 1,814,879 (741,619) 12,872,302 (12,260,905) 4,743,149
91,354,044 3,054,455 30,977,202 12,480,188 89,575,398 4,062,034
------------ ---------- ------------ ------------ ------------ ------------
$ 90,433,006 $4,869,334 $30,235,583 $25,352,490 $ 77,314,493 $ 8,805,183
============ ========== =========== =========== ============ ===========
$ 19,454 $ -- $ -- $ -- $ (7,724) $ --
============ ========== =========== =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
151
<PAGE> 325
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30, 1994
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------------------------------------
<S> <C> <C> <C>
Net investment income......................................... $ 776,291 $ 233,740 $ 1,542,263
Net realized loss on investments.............................. (281,494) (99,603) (864,030)
Change in unrealized depreciation of investments.............. (1,219,611) (598,039) (1,828,260)
----------- ---------- -----------
Net increase/(decrease) in net assets resulting from
operations.................................................. (724,814) (463,902) (1,150,027)
Distributions to shareholders from net investment income:
Trust A Shares........................................... (146,160) (8,596) (1,394,577)
Investor A Shares........................................ (509,072) (1,849) (57,499)
Investor C Shares........................................ (7) (8) (6)
Investor N Shares........................................ (121,052) (223,287) (91,521)
Distributions in excess of net investment income:
Trust A Shares........................................... (54) -- (667)
Investor A Shares........................................ (376) -- (23)
Investor C Shares........................................ -- -- --
Investor N Shares........................................ (57) -- (33)
Distributions to shareholders from net realized gain on
investments:
Trust A Shares........................................... (2,494) -- (90,430)
Investor A Shares........................................ (17,354) -- (3,197)
Investor C Shares........................................ -- -- --
Investor N Shares........................................ (2,621) -- (4,457)
Distributions in excess of net realized gain on investments:
Trust A Shares........................................... -- -- --
Investor A Shares........................................ -- -- --
Investor C Shares........................................ -- -- --
Investor N Shares........................................ -- -- --
Net increase/(decrease) in net assets from Fund share
transactions:
Trust A Shares........................................... 2,303,132 335,499 (5,338,085)
Investor A Shares........................................ (6,822,520) 13,824 (142,259)
Investor C Shares........................................ 2,007 2,009 2,006
Investor N Shares........................................ 1,452,381 2,888,563 1,657,564
----------- ---------- -----------
Net increase/(decrease) in net assets......................... (4,589,061) 2,542,253 (6,613,211)
NET ASSETS:
Beginning of year............................................. 19,905,820 3,317,534 34,173,349
----------- ---------- -----------
End of year................................................... $15,316,759 $5,859,787 $27,560,138
=========== ========== ===========
Undistributed net investment income/(distributions in excess
of net investment income) at end of year.................... $ (487) $ -- $ (1,938)
=========== ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
152
<PAGE> 326
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS NATIONS NATIONS
TEXAS INTERMEDIATE VIRGINIA SHORT-TERM INTERMEDIATE NATIONS
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND INCOME FUND BOND FUND INCOME FUND
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 566,220 $ 13,864,294 $ 586,416 $ 1,553,772 $ 1,678,179 $ 6,499,259
(850,801) (293,503) (566,536) (431,978) (233,822) (3,839,179)
(985,160) (26,702,946) (1,601,130) (948,828) (3,214,062) (12,993,214)
----------- ------------ ----------- ----------- ----------- ------------
(1,269,741) (13,132,155) (1,581,250) 172,966 (1,769,705) (10,333,134)
(93,274) (8,834,035) (22,238) (1,012,321) (1,645,688) (4,059,259)
(2,473) (4,268,679) (6,310) (11,966) (8,436) (1,398,357)
(8) (414,934) (8) (5,321) (7) (207,471)
(470,465) (364,498) (557,860) (523,217) (24,048) (834,172)
-- -- -- -- (1,135) (6,606)
-- -- -- -- (11) (2,129)
-- -- -- -- -- (472)
-- -- -- -- (5) (1,234)
-- (1,604,791) -- (618) (24,222) (1,887,630)
-- (851,034) -- (7) (227) (608,378)
-- (90,322) -- (3) -- (134,826)
-- (46,835) -- (319) (96) (352,745)
-- (1,430) -- -- -- --
-- (758) -- -- -- --
-- (80) -- -- -- --
-- (42) -- -- -- --
2,537,276 (7,145,007) 493,291 28,366,391 13,110,322 (17,216,741)
64,430 (15,081,000) 164,049 (509,542) 130,727 (398,799)
2,008 (1,833,347) 2,008 326,801 2,007 (2,540,420)
6,232,860 5,349,023 8,242,954 8,053,505 999,938 4,915,485
----------- ------------ ----------- ----------- ----------- ------------
7,000,613 (48,319,924) 6,734,636 34,856,349 10,769,414 (35,066,888)
6,153,728 313,198,181 6,605,061 12,593,008 28,402,504 138,265,010
----------- ------------ ----------- ----------- ----------- ------------
$13,154,341 $264,878,257 $13,339,697 $47,449,357 $39,171,918 $103,198,122
=========== ============ =========== =========== =========== ============
$ 51 $ 118,382 $ -- $ 947 $ 13,876 $ (5,421)
=========== ============ =========== =========== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
153
<PAGE> 327
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.............................................................. 1,146,972 $ 11,655,676 2,309,346 $ 23,543,111
Issued as reinvestment of dividends............................... 11,537 118,686 4,042 41,220
Redeemed.......................................................... (1,459,626) (14,754,310) (1,818,091) (18,435,869)
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... (301,117) $ (2,979,948) 495,297 $ 5,148,462
========== ============ ========== ============
INVESTOR A SHARES:
Sold.............................................................. 60,287 $ 623,631 129,495 $ 1,322,049
Issued as reinvestment of dividends............................... 6,012 61,967 5,611 57,038
Redeemed.......................................................... (70,621) (724,670) (130,320) (1,335,611)
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... (4,322) $ (39,072) 4,786 $ 43,476
========== ============ ========== ============
INVESTOR C SHARES:
Sold.............................................................. 7,951 $ 81,257 22,484 $ 237,371
Issued as reinvestment of dividends............................... 651 6,712 1,209 12,411
Redeemed.......................................................... (46,413) (456,057) (24,940) (252,356)
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... (37,811) $ (368,088) (1,247) $ (2,574)
========== ============ ========== ============
INVESTOR N SHARES:
Sold.............................................................. 61,816 $ 629,178 222,164 $ 2,284,832
Issued as reinvestment of dividends............................... 9,672 99,647 8,411 85,289
Redeemed.......................................................... (110,337) (1,117,016) (59,187) (599,650)
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... (38,849) $ (388,191) 171,388 $ 1,770,471
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
GEORGIA MUNICIPAL BOND FUND
YEAR ENDED PERIOD ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994*
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.............................................................. 248,412 $ 2,325,432 29,172 $ 268,300
Issued in exchange for Class A shares of The Capitol Mutual Funds
Maryland Tax Free Securities Portfolio (Note 9)................. -- -- -- --
Issued as reinvestment of dividends............................... 35 326 2 22
Redeemed.......................................................... (5,684) (48,500) (1,548) (14,100)
--------- ------------ -------- ------------
Net increase/(decrease)........................................... 242,763 $ 2,277,258 27,626 $ 254,222
========= ============ ======== ============
INVESTOR A SHARES:
Sold.............................................................. 576 $ 5,231 657 $ 8,402
Issued in exchange for Class A shares of The Capitol Mutual Funds
Maryland Tax Free Securities Portfolio (Note 9)................. -- -- -- --
Issued as reinvestment of dividends............................... 37 346 27 245
Redeemed.......................................................... (625) (5,747) (1) (9)
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... (12) $ (170) 683 $ 8,638
========== ============ ========== ============
INVESTOR C SHARES:
Sold.............................................................. 6,726 $ 62,955 238 $ 2,008
Issued as reinvestment of dividends............................... 165 1,560 -- --
Redeemed.......................................................... -- -- -- --
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... 6,891 $ 64,515 238 $ 2,008
========== ============ ========== ============
<CAPTION>
YEAR ENDED
NOVEMBER 30, 1994
------------------------
<S> <C> <C> <C> <C>
INVESTOR N SHARES:
Sold.............................................................. 347,783 $ 3,209,054 708,722 $ 6,773,034
Issued as reinvestment of dividends............................... 35,793 331,490 31,713 289,240
Redeemed.......................................................... (177,731) (1,609,739) (98,313) (884,826)
---------- ------------ ---------- ------------
Net increase/(decrease)........................................... 205,845 $ 1,930,805 642,122 $ 6,177,448
========== ============ ========== ============
</TABLE>
- ---------------
* The Nations Florida Municipal Bond Fund's Trust A, Investor A and Investor C
Shares commenced operations on December 13, 1993, December 10, 1993 and
November 3, 1994, respectively. The Nations Georgia Municipal Bond Fund's
Trust A, Investor A and Investor C Shares commenced operations on January 13,
1994, December 30, 1993 and November 3, 1994, respectively. The Nations
Maryland Municipal Bond Fund's Trust A and Investor C Shares commenced
operations on September 20, 1994 and November 3, 1994, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
154
<PAGE> 328
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND FUND GEORGIA INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994* NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- --------------------------- ------------------------ -------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
827,828 $ 7,626,050 670,026 $ 6,070,482 904,960 $ 9,489,873 1,064,666 $11,063,641
53 507 -- -- 3,190 32,982 4,378 46,120
(185,287) (1,707,049) (162,907) (1,462,064) (545,762) (5,696,876) (538,490) (5,538,954)
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
642,594 $ 5,919,508 507,119 $ 4,608,418 362,388 $ 3,825,979 530,554 $ 5,570,807
========== ============ ========== ============ ======== =========== ========= ===========
69,113 $ 638,422 120,455 $ 1,116,564 40,780 $ 424,999 77,726 $ 817,193
1,391 12,557 3,714 33,387 32,123 336,207 41,219 430,237
(9,308) (87,741) (2,218) (20,227) (283,783) (2,999,338) (608,234) (6,306,855)
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
61,196 $ 563,238 121,951 $ 1,129,724 (210,880) $(2,238,132) (489,289) $(5,059,425)
========== ============ ========== ============ ======== =========== ======== ===========
3,588 $ 33,217 237 $ 2,008 63,104 $ 649,279 27,799 $ 301,009
115 1,076 -- -- 5,948 62,325 8,221 85,809
-- -- -- -- (72,141) (745,971) (68,340) (705,737)
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
3,703 $ 34,293 237 $ 2,008 (3,089) $ (34,367) (32,320) $ (318,919)
========== ============ ========== ============ ======== =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
NOVEMBER 30, 1994
---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
564,818 $ 5,228,438 1,633,043 $ 15,454,445 117,607 $ 1,229,942 342,355 $ 3,601,607
53,698 499,489 42,586 388,868 12,857 134,694 11,785 122,354
(381,967) (3,540,743) (484,038) (4,358,786) (116,189) (1,209,871) (30,282) (311,295)
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
236,549 $ 2,187,184 1,191,591 $ 11,484,527 14,275 $ 154,765 323,858 $ 3,412,666
========== ============ ========== ============ ======== =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
MARYLAND INTERMEDIATE MUNICIPAL BOND FUND MARYLAND MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994 NOVEMBER 30, 1995 NOVEMBER 30, 1994*
--------------------------- --------------------------- ------------------------ -------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1,493,596 $ 15,841,513 1,621,767 $ 17,497,439 335,224 $ 2,986,149 6,539 $ 57,413
-- -- 384,169 4,049,136 -- -- -- --
6,193 66,317 1,385 14,420 231 2,153 28 238
(1,930,435) (20,006,763) (1,418,621) (14,944,176) (70,604) (640,774) (1,903) (17,324)
---------- ----------- ---------- ----------- ------- ---------- -------- --------
(430,646) $ (4,098,933) 588,700 $ 6,616,819 264,851 $ 2,347,528 4,664 $ 40,327
========== ============ ========== ============ ======= =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
NOVEMBER 30, 1994
-------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
55,018 $ 577,135 274,222 $ 2,974,748 120,816 $ 1,109,459 643 $ 6,156
-- -- 446,299 4,703,993 -- --
78,815 834,417 95,971 1,023,814 2,022 18,942 54 489
(411,563) (4,296,594) (597,241) (6,229,976) (16,864) (160,259) (207) (1,891)
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
(277,730) $ (2,885,042) 219,251 $ 2,472,579 105,974 $ 968,142 490 $ 4,754
========== ============ ========== ============ ======== =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
NOVEMBER 30, 1994*
-------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
82,610 $ 882,386 17,907 $ 194,299 -- $ -- 238 $ 2,008
9,549 101,241 14,389 154,706 11 99 -- --
(92,742) (970,935) (174,009) (1,820,826) -- -- -- --
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
(583) $ 12,692 (141,713) $ (1,471,821) 11 $ 99 238 $ 2,008
========== ============ ========== ============ ======== =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
NOVEMBER 30, 1994
------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
61,601 $ 655,626 181,677 $ 1,942,843 519,032 $ 4,795,953 353,691 $ 3,248,462
15,604 165,113 15,751 167,461 25,277 233,044 17,483 158,966
(104,491) (1,105,215) (51,947) (544,128) (81,521) (746,588) (107,217) (994,418)
---------- ------------ ---------- ------------ -------- ----------- --------- -----------
(27,286) $ (284,476) 145,481 $ 1,566,176 462,788 $ 4,282,409 263,957 $ 2,413,010
========== ============ ========== ============ ======== =========== ========= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
155
<PAGE> 329
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold................................................................. 1,844,778 $ 18,203,038 961,558 $ 9,714,844
Issued as reinvestment of dividends.................................. 943 9,687 -- --
Redeemed............................................................. (1,340,599) (13,284,844) (605,780) (6,126,963)
---------- ----------- -------- ----------
Net increase/(decrease).............................................. 505,122 $ 4,927,881 355,778 $ 3,587,881
========== ============ ======== ===========
INVESTOR A SHARES:
Sold................................................................. 131,196 $ 1,347,569 177,347 $ 1,818,480
Issued as reinvestment of dividends.................................. 21,179 214,891 37,064 375,402
Redeemed............................................................. (275,097) (2,823,889) (594,991) (6,146,193)
---------- ----------- -------- ----------
Net increase/(decrease).............................................. (122,722) $ (1,261,429) (380,580) $(3,952,311)
========== ============ ======== ===========
INVESTOR C SHARES:
Sold................................................................. 1,507 $ 15,010 11,490 $ 118,070
Issued as reinvestment of dividends.................................. 5,291 53,777 6,131 61,968
Redeemed............................................................. (32,759) (336,457) (13,899) (141,343)
---------- ----------- -------- ----------
Net increase/(decrease).............................................. (25,961) $ (267,670) 3,722 $ 38,695
========== ============ ======== ===========
INVESTOR N SHARES:
Sold................................................................. 200,084 $ 2,036,562 254,061 $ 2,594,678
Issued as reinvestment of dividends.................................. 21,150 215,945 16,601 167,499
Redeemed............................................................. (73,500) (754,441) (37,063) (357,616)
---------- ----------- -------- ----------
Net increase......................................................... 147,734 $ 1,498,066 233,599 $ 2,404,561
========== ============ ======== ===========
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA MUNICIPAL BOND FUND
YEAR ENDED PERIOD ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994*
--------------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold................................................................. 193,093 $ 1,813,604 49,997 $ 472,120
Issued as reinvestment of dividends.................................. 189 1,827 -- --
Redeemed............................................................. (61,148) (592,394) (3,817) (35,000)
---------- ----------- -------- ----------
Net increase......................................................... 132,134 $ 1,223,037 46,180 $ 437,120
========== ============ ======== ===========
YEAR ENDED
NOVEMBER 30, 1994
------------------------
INVESTOR A SHARES:
Sold................................................................. 120,735 $ 1,168,760 23,520 $ 220,798
Issued as reinvestment of dividends.................................. 1,785 17,400 468 4,329
Redeemed............................................................. (14,782) (135,625) (9,214) (80,751)
---------- ----------- -------- ----------
Net increase/(decrease).............................................. 107,738 $ 1,050,535 14,774 $ 144,376
========== ============ ======== ===========
PERIOD ENDED
NOVEMBER 30, 1994*
------------------------
INVESTOR C SHARES:
Sold................................................................. 1,707 $ 16,863 230 $ 2,008
Issued as reinvestment of dividends.................................. 17 163 -- --
Redeemed............................................................. -- -- -- --
---------- ----------- -------- ----------
Net increase......................................................... 1,724 $ 17,026 230 $ 2,008
========== ============ ======== ===========
YEAR ENDED
NOVEMBER 30, 1994
------------------------
INVESTOR N SHARES:
Sold................................................................. 383,905 $ 3,618,893 656,030 $ 6,319,041
Issued as reinvestment of dividends.................................. 35,863 342,751 23,798 221,284
Redeemed............................................................. (106,842) (1,012,067) (135,136) (1,260,634)
---------- ----------- -------- ----------
Net increase/(decrease).............................................. 312,926 $ 2,949,577 544,692 $ 5,279,691
========== ============ ======== ===========
</TABLE>
- ---------------
* The Nations North Carolina Municipal Bond Fund's Trust A and Investor C Shares
commenced operations on January 11, 1994 and November 3, 1994, respectively.
The Nations South Carolina Municipal Bond Fund's Trust A and Investor C Shares
commenced operations on December 27, 1993 and November 3, 1994, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
156
<PAGE> 330
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL BOND FUND SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994* NOVEMBER 30, 1995 NOVEMBER 30, 1994
------------------------ ------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
134,128 $ 1,225,334 66,129 $ 584,503 1,269,794 $ 13,084,967 1,632,589 $ 17,045,423
402 3,756 -- -- 23,686 244,498 20,204 209,937
(64,999) (587,502) (2,697) (24,596) (2,083,337) (21,288,611) (2,001,654) (20,265,413)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
69,531 $ 641,588 63,432 $ 559,907 (789,857) $ (7,959,146) (348,861) $ (3,010,053)
======== =========== ========= =========== ========== ============ ========== ============
YEAR ENDED
NOVEMBER 30, 1994
-------------------------
15,161 $ 140,254 47,712 $ 434,312 171,771 $ 1,780,993 328,445 $ 3,473,277
1,393 12,876 1,876 18,167 30,605 317,889 53,253 549,376
(119,674) (1,140,251) (20,947) (181,630) (528,145) (5,494,874) (591,371) (6,024,613)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
(103,120) $ (987,121) 28,641 $ 270,849 (325,769) $ (3,395,992) (209,673) $ (2,001,960)
======== =========== ========= =========== ========== ============ ========== ============
PERIOD ENDED
NOVEMBER 30, 1994*
-------------------------
2,465 $ 22,340 238 $ 2,008 30,840 $ 318,257 35,243 $ 373,269
66 607 -- -- 16,641 172,531 23,321 240,015
(2,520) (23,308) -- -- (162,128) (1,663,460) (227,919) (2,321,716)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
11 $ (361) 238 $ 2,008 (114,647) $ (1,172,672) (169,355) $ (1,708,432)
======== =========== ========= =========== ========== ============ ========== ============
YEAR ENDED
NOVEMBER 30, 1994
-------------------------
585,537 $ 5,377,481 1,873,243 $17,644,762 65,508 $ 684,158 253,749 $ 2,642,786
98,756 915,990 75,016 681,663 14,507 150,640 14,580 149,520
(424,337) (3,932,103) (276,360) (2,485,546) (63,990) (664,839) (62,786) (641,670)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
259,956 $ 2,361,368 1,671,899 $15,840,879 16,025 $ 169,959 205,543 $ 2,150,636
======== =========== ========= =========== ========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND TENNESSEE MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994* NOVEMBER 30, 1995 NOVEMBER 30, 1994*
------------------------ ------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
312,878 $ 3,118,192 315,802 $ 3,110,506 71,158 $ 674,501 42,790 $ 395,864
3,932 39,550 3,832 38,269 12 119 85 787
(59,477) (582,457) (85,686) (845,643) (29,492) (262,107) (6,667) (61,152)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
257,333 $ 2,575,285 233,948 $ 2,303,132 41,678 $ 412,513 36,208 $ 335,499
======== =========== ========= =========== ========== ============ ========== ============
YEAR ENDED
NOVEMBER 30, 1994
---------------------------
3,845 $ 38,649 110,895 $ 1,103,153 15,348 $ 147,007 1,480 $ 13,231
28,686 283,928 44,474 440,335 340 3,255 66 602
(134,147) (1,331,163) (842,796) (8,366,008) (139) (1,340) (1) (9)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
(101,616) $(1,008,586) (687,427) $(6,822,520) 15,549 $ 148,922 1,545 $ 13,824
======== =========== ========= =========== ========== ============ ========== ============
PERIOD ENDED PERIOD ENDED
NOVEMBER 30, 1994* NOVEMBER 30, 1994*
------------------------- ---------------------------
-- $ -- 214 $ 2,007 6,000 $ 54,533 233 $ 2,009
9 89 -- -- 231 2,207 -- --
-- -- -- -- -- -- -- --
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
9 $ 89 214 $ 2,007 6,231 $ 56,740 233 $ 2,009
======== =========== ========= =========== ========== ============ ========== ============
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1994 NOVEMBER 30, 1994
------------------------- ---------------------------
71,840 $ 697,591 156,097 $ 1,565,658 86,927 $ 813,298 481,662 $ 4,576,228
11,321 112,089 10,251 100,518 21,741 205,165 15,895 146,618
(95,940) (941,234) (21,442) (213,795) (79,247) (732,342) (190,967) (1,834,283)
-------- ----------- --------- ----------- ---------- ------------ ---------- ------------
(12,779) $ (131,554) 144,906 $ 1,452,381 29,421 $ 286,121 306,590 $ 2,888,563
======== =========== ========= =========== ========== ============ ========== ============
</TABLE>
- ---------------
* The Nations Tennessee Intermediate Municipal Bond Fund's Investor C Shares
commenced operations on November 3, 1994.
The Nations Tennessee Municipal Bond Fund's Trust A and Investor C Shares
commenced operations on March 2, 1994 and
November 3, 1994, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
157
<PAGE> 331
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
-------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold............................................................ 975,430 $ 9,791,251 1,583,846 $ 16,093,317
Issued as reinvestment of dividends............................. -- -- -- --
Redeemed........................................................ (952,900) (9,490,650) (2,139,866) (21,431,402)
-------- ----------- ---------- ------------
Net increase/(decrease)......................................... 22,530 $ 300,601 (556,020) $ (5,338,085)
======= =========== ========== ============
INVESTOR A SHARES:
Sold............................................................ 21,831 $ 220,133 110,706 $ 1,140,021
Issued as reinvestment of dividends............................. 2,485 25,000 3,401 34,175
Redeemed........................................................ (21,758) (223,379) (132,400) (1,316,455)
-------- ----------- ---------- ------------
Net increase/(decrease)......................................... 2,558 $ 21,754 (18,293) $ (142,259)
======= =========== ========== ============
PERIOD ENDED
NOVEMBER 30, 1994*
-----------------------------
INVESTOR C SHARES:
Sold............................................................ 53,044 $ 522,482 210 $ 2,006
Issued as reinvestment of dividends............................. 1,777 18,041 -- --
Redeemed........................................................ -- -- -- --
-------- ----------- ---------- ------------
Net increase/(decrease)......................................... 54,821 $ 540,523 210 $ 2,006
======= =========== ========== ============
YEAR ENDED
NOVEMBER 30, 1994
-----------------------------
INVESTOR N SHARES:
Sold............................................................ 84,923 $ 838,444 183,524 $ 1,864,286
Issued as reinvestment of dividends............................. 7,959 80,137 6,392 67,778
Redeemed........................................................ (81,044) (817,038) (27,495) (274,500)
-------- ----------- ---------- ------------
Net increase.................................................... 11,838 $ 101,543 162,421 $ 1,657,564
======= =========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND FUND
YEAR ENDED PERIOD ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994*
-------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold............................................................ 413,959 $ 3,772,491 106,914 $ 966,670
Issued as reinvestment of dividends............................. -- -- -- --
Redeemed........................................................ (99,561) (917,400) (54,786) (473,379)
-------- ----------- ---------- ------------
Net increase.................................................... 314,398 $ 2,855,091 52,128 $ 493,291
======= =========== ========== ============
YEAR ENDED
NOVEMBER 30, 1994
-----------------------------
INVESTOR A SHARES:
Sold............................................................ 49,113 $ 448,875 17,866 $ 165,480
Issued as reinvestment of dividends............................. 1,639 15,216 314 2,815
Redeemed........................................................ (3,460) (31,675) (470) (4,246)
-------- ----------- ---------- ------------
Net increase/(decrease)......................................... 47,292 $ 432,416 17,710 $ 164,049
======= =========== ========== ============
PERIOD ENDED
NOVEMBER 30, 1994*
-----------------------------
INVESTOR C SHARES:
Sold............................................................ 3,208 $ 30,000 240 $ 2,008
Issued as reinvestment of dividends............................. 37 349 -- --
Redeemed........................................................ -- -- -- --
-------- ----------- ---------- ------------
Net increase.................................................... 3,245 $ 30,349 240 $ 2,008
======= =========== ========== ============
YEAR ENDED
NOVEMBER 30, 1994
-----------------------------
INVESTOR N SHARES:
Sold............................................................ 428,382 $ 3,908,794 1,000,395 $ 9,455,632
Issued as reinvestment of dividends............................. 50,257 460,342 42,670 385,001
Redeemed........................................................ (301,881) (2,767,063) (179,519) (1,597,679)
-------- ----------- ---------- ------------
Net increase/(decrease)......................................... 176,758 $ 1,602,073 863,546 $ 8,242,954
======= =========== ========== ============
</TABLE>
- ---------------
* The Nations Texas Intermediate Municipal Bond Fund's Investor C Shares
commenced operations on November 3, 1994.
The Nations Virginia Municipal Bond Fund's Trust A and Investor C Shares
commenced operations on January 11, 1994 and November 3, 1994, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
158
<PAGE> 332
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS MUNICIPAL BOND FUND VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994* NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
383,634 $ 3,559,000 429,692 $ 3,942,777 3,677,758 $ 38,089,007 4,563,720 $ 48,487,391
12 118 2 23 4,718 50,365 -- --
(180,416) (1,660,939) (157,425) (1,405,524) (6,003,387) (61,988,501) (5,296,345) (55,632,398)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
203,230 $ 1,898,179 272,269 $ 2,537,276 (2,320,911) $(23,849,129) (732,625) $ (7,145,007)
========== ============ ========== ============ ========== ============ ========= ============
29,379 $ 271,807 6,339 $ 62,220 391,410 $ 4,179,181 682,362 $ 7,384,659
497 4,619 246 2,219 247,675 2,607,528 367,431 3,899,471
(250) (2,340) (1) (9) (1,864,040) (19,606,595) (2,497,554) (26,365,130)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
29,626 $ 274,086 6,584 $ 64,430 (1,224,955) $(12,819,886) (1,447,761) $(15,081,000)
========== ============ ========== ============ ========== ============ ========= ============
6,997 $ 67,241 237 $ 2,008 33,822 $ 356,429 45,288 $ 489,437
14 128 -- -- 22,321 234,946 36,072 383,195
-- -- -- -- (237,954) (2,481,935) (256,327) (2,705,979)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
7,011 $ 67,369 237 $ 2,008 (181,811) $ (1,890,560) (174,967) $ (1,833,347)
========== ============ ========== ============ ========== ============ ========= ============
YEAR ENDED
NOVEMBER 30, 1994
---------------------------
182,446 $ 1,660,888 792,749 $ 7,440,036 196,577 $ 2,066,617 529,403 $ 5,682,636
37,332 344,793 30,384 275,484 31,902 336,450 28,767 302,965
(210,246) (1,897,515) (164,326) (1,482,660) (80,314) (844,140) (61,316) (636,578)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
9,532 $ 108,166 658,807 $ 6,232,860 148,165 $ 1,558,927 496,854 $ 5,349,023
========== ============ ========== ============ ========== ============ ========= ============
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INCOME FUND INTERMEDIATE MUNICIPAL BOND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994 NOVEMBER 30, 1995 NOVEMBER 30, 1994
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6,040,524 $ 59,807,211 4,683,601 $ 46,390,137 6,368,745 $ 61,040,972 3,081,509 $ 30,234,809
487 4,829 50 503 4,403 43,854 480 4,711
(4,515,896) (44,754,868) (1,830,646) (18,024,249) (3,227,145) (31,334,809) (1,765,129) (17,129,198)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
1,525,115 $ 15,057,172 2,853,005 $ 28,366,391 3,146,003 $ 29,750,017 1,316,860 $ 13,110,322
========== ============ ========== ============ ========== ============ ========= ============
372,440 $ 3,687,711 32,876 $ 327,492 186,665 $ 1,837,122 38,039 $ 381,605
7,790 77,653 885 9,505 1,577 15,712 504 4,962
(29,657) (295,349) (84,786) (846,539) (84,078) (847,555) (26,676) (255,840)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
350,573 $ 3,470,015 (51,025) $ (509,542) 104,164 $ 1,005,279 11,867 $ 130,727
========== ============ ========== ============ ========== ============ ========= ============
PERIOD ENDED PERIOD ENDED
NOVEMBER 30, 1994* NOVEMBER 30, 1994*
--------------------------- ---------------------------
228,014 $ 2,263,288 42,971 $ 421,477 38,466 $ 382,247 215 $ 2,007
4,037 40,227 542 5,324 577 5,747 -- --
(70,700) (703,618) (10,149) (100,000) (3,956) (39,877) -- --
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
161,351 $ 1,599,897 33,364 $ 326,801 35,087 $ 348,117 215 $ 2,007
========== ============ ========== ============ ========== ============ ========= ============
YEAR ENDED
NOVEMBER 30, 1994
---------------------------
254,567 $ 2,524,044 2,548,512 $ 25,329,457 31,097 $ 303,553 102,578 $ 1,005,236
39,266 388,621 48,572 478,362 2,088 20,580 1,043 10,018
(701,404) (6,895,736) (1,800,883) (17,754,314) (2,286) (22,210) (1,578) (15,316)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
(407,571) $ (3,983,071) 796,201 $ 8,053,505 30,899 $ 301,923 102,043 $ 999,938
========== ============ ========== ============ ========== ============ ========= ============
</TABLE>
- ---------------
* The Nations Texas Municipal Bond Fund's Trust A, Investor A and Investor C
Shares commenced operations on February 3, 1994, December 17, 1993 and
November 3, 1994, respectively. The Nations Short-Term Municipal Income Fund's
Investor C Shares commenced operations on May 19, 1994. The Nations
Intermediate Municipal Bond Fund's Investor C and Investor N Shares commenced
operations on November 3, 1994 and December 2, 1993, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
159
<PAGE> 333
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL INCOME FUND
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------------------- -----------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold......................................................... 1,796,749 $ 19,011,473 1,709,915 $ 18,554,070
Issued as reinvestment of dividends.......................... 12,986 136,573 9,943 106,583
Redeemed..................................................... (1,748,870) (18,120,223) (3,370,890) (35,877,394)
---------- ------------ ---------- ------------
Net increase/(decrease)...................................... 60,865 $ 1,027,823 (1,651,032) $(17,216,741)
========== ============ ========== ============
INVESTOR A SHARES:
Sold......................................................... 373,929 $ 3,983,637 396,545 $ 4,295,878
Issued as reinvestment of dividends.......................... 65,431 692,155 117,538 1,271,953
Redeemed..................................................... (380,762) (3,995,408) (557,648) (5,966,630)
---------- ------------ ---------- ------------
Net increase/(decrease)...................................... 58,598 $ 680,384 (43,565) $ (398,799)
========== ============ ========== ============
INVESTOR C SHARES:
Sold......................................................... 13,377 $ 142,171 20,317 $ 222,683
Issued as reinvestment of dividends.......................... 8,175 86,132 24,095 262,572
Redeemed..................................................... (134,879) (1,407,986) (285,245) (3,025,675)
---------- ------------ ---------- ------------
Net decrease................................................. (113,327) $ (1,179,683) (240,833) $ (2,540,420)
========== ============ ========== ============
INVESTOR N SHARES:
Sold......................................................... 104,723 $ 1,102,342 702,667 $ 7,578,629
Issued as reinvestment of dividends.......................... 43,957 464,375 74,373 799,575
Redeemed..................................................... (283,805) (3,012,481) (338,651) (3,462,719)
---------- ------------ ---------- ------------
Net increase/(decrease)...................................... (135,125) $ (1,445,764) 438,389 $ 4,915,485
========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
160
<PAGE> 334
(This Page Intentionally Left Blank)
161
<PAGE> 335
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------------------------
YEAR YEAR PERIOD
NATIONS FLORIDA INTERMEDIATE ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93*
===================================
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.................................................... $ 9.61 $ 10.50 $ 10.00
-------- ---------- ---------
Net investment income................................................................. 0.48 0.45 0.44
Net realized and unrealized gain/(loss) on investments................................ 1.02 (0.88) 0.50
-------- ---------- ---------
Net increase/(decrease) in net assets resulting from investment operations............ 1.50 (0.43) 0.94
Distributions:
Dividends from net investment income.................................................. (0.48) (0.45) (0.44)
Distributions in excess of net investment income...................................... -- (0.00)# --
Distributions from net realized gains................................................. -- (0.01) --
-------- ---------- ---------
Total distributions................................................................... (0.48) (0.46) (0.44)
-------- ---------- ---------
Net asset value, end of year.......................................................... $ 10.63 $ 9.61 $ 10.50
======= ======= =======
Total return++........................................................................ 15.92% (4.26)% 9.50%
======= ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).................................................... $44,038 $ 42,717 $41,489
Ratio of operating expenses to average net assets..................................... 0.55%(a) 0.55%(a) 0.44%+
Ratio of net investment income to average net assets.................................. 4.70% 4.44% 4.28%+
Portfolio turnover rate............................................................... 27% 34% 15%
Ratio of operating expenses to average net assets without waivers..................... 0.81% 0.76% 0.80%+
Net investment income per share without waivers....................................... $ 0.46 $ 0.43 $ 0.40
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-------------------------
YEAR PERIOD
NATIONS FLORIDA ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
=====================
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.................................................... $ 8.40 $ 9.93
-------- ----------
Net investment income................................................................. 0.51 0.49
Net realized and unrealized gain/(loss) on investments................................ 1.36 (1.53)
-------- ----------
Net increase/(decrease) in net assets resulting from investment operations............ 1.87 (1.04)
Dividends from net investment income.................................................. (0.51) (0.49)
-------- ----------
Net asset value, end of year.......................................................... $ 9.76 $ 8.40
======= =======
Total return++........................................................................ 22.69% (10.70)%
======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).................................................... $11,219 $ 4,258
Ratio of operating expenses to average net assets..................................... 0.39%(a) 0.21%+(a)
Ratio of net investment income to average net assets.................................. 5.44% 5.55%+
Portfolio turnover rate............................................................... 13% 46%
Ratio of operating expenses to average net assets without waivers..................... 0.95% 0.91%+
Net investment income per share without waivers....................................... $ 0.46 $ 0.43
</TABLE>
- ---------------
* The Nations Florida Intermediate Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on December 11, 1992,
December 14, 1992, December 17, 1992 and June 7, 1993, respectively.
** The Nations Florida Municipal Bond Fund's Trust A, Investor A, Investor C
and Investor N Shares commenced operations on December 13, 1993, December
10, 1993, November 3, 1994 and October 22, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
162
<PAGE> 336
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
------------------------------------- ------------------------------------
YEAR YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93* 11/30/95 11/30/94 11/30/93*
=========================================================================================
<S> <C> <C> <C> <C> <C>
$ 9.61 $10.50 $ 9.99 $ 9.61 $10.50 $ 9.98
-------- ---------- --------- -------- -------- ----------
0.46 0.43 0.42 0.43 0.39 0.35
1.02 (0.88) 0.51 1.02 (0.88) 0.52
-------- ---------- --------- -------- -------- ----------
1.48 (0.45) 0.93 1.45 (0.49) 0.87
(0.46) (0.43) (0.42) (0.43) (0.39) (0.35)
-- (0.00)# -- -- (0.00)# --
-- (0.01) -- -- (0.01) --
-------- ---------- --------- -------- -------- ----------
(0.46) (0.44) (0.42) (0.43) (0.40) (0.35)
-------- ---------- --------- -------- -------- ----------
$10.63 $ 9.61 $ 10.50 $10.63 $ 9.61 $10.50
====== ======= ====== ====== ====== =======
15.68% (4.43)% 9.44% 15.34% (4.81)% 8.80%
====== ======= ====== ====== ====== =======
$2,292 $2,114 $ 2,261 $ 277 $ 614 $ 684
0.75%(a) 0.73%(a) 0.59%+ 1.05%(a) 1.13%(a) 1.19%+
4.50% 4.26% 4.13%+ 4.20% 3.86% 3.53%+
27% 34% 15% 27% 34% 15%
1.01% 0.94% 0.95%+ 1.31% 1.34% 1.55%+
$ 0.44 $ 0.41 $ 0.39 $ 0.41 $ 0.37 $ 0.31
<CAPTION>
INVESTOR N SHARES
-----------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93*
========================================
<S> <C> <C> <C>
$ 9.61 $10.50 $10.32
-------- -------- ----------
0.43 0.40 0.18
1.02 (0.88) 0.18
-------- -------- ----------
1.45 (0.48) 0.36
(0.43) (0.40) (0.18)
-- (0.00)# --
-- (0.01) --
-------- -------- ----------
(0.43) (0.41) (0.18)
-------- -------- ----------
$10.63 $ 9.61 $10.50
====== ====== -------
15.34% (4.73)% 3.53%
====== ====== -------
$4,775 $4,691 $3,328
1.05%(a) 1.05%(a) 0.94%+
4.20% 3.94% 3.78%+
27% 34% 15%
1.31% 1.26% 1.30%+
$ 0.41 $ 0.38 $ 0.17
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
----------------------- ---------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
11/30/95 11/30/94** 11/30/95 11/30/94**
==============================================================================================
<S> <C> <C> <C> <C> <C>
$ 8.40 $ 9.98 $ 8.40 $ 8.47
-------- ---------- -------- --------
0.49 0.47 0.44 0.03
1.36 (1.58) 1.36 (0.07)
-------- ---------- -------- --------
1.85 (1.11) 1.80 (0.04)
(0.49) (0.47) (0.44) (0.03)
-------- ---------- -------- --------
$ 9.76 $ 8.40 $ 9.76 $ 8.40
====== ======= ====== ======
22.45% (11.35)% 21.80% (0.43)%
====== ======= ====== ======
$1,787 $1,024 $ 38 $ 2
0.59%(a) 0.39%+(a) 1.14%(a) 0.96%+(a)
5.24% 5.37%+ 4.69% 4.80%+
13% 46% 13% 46%
1.15% 1.09%+ 1.70% 1.66%+
$ 0.44 $ 0.42 $ 0.39 $ 0.03
<CAPTION>
INVESTOR N SHARES
- -----------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93**
=========================================
<C> <C> <C>
$ 8.40 $ 9.73 $ 10.00
- -------- -------- ----------
0.44 0.45 0.03
1.36 (1.33) (0.27)
- -------- -------- ----------
1.80 (0.88) (0.24)
(0.44 ) (0.45) (0.03)
- -------- -------- ----------
$ 9.76 $ 8.40 $ 9.73
======= ======= =======
21.78% (9.37)% (2.35)%
======= ======= =======
$25,398 $19,868 $ 11,434
1.14%(a) 0.96%(a) 0.68%+
4.69% 4.80% 3.29%+
13% 46% 0%
1.70% 1.66% 1.84%+
$ 0.39 $ 0.38 $ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
163
<PAGE> 337
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
--------------------------------------------------
YEAR YEAR YEAR PERIOD
NATIONS GEORGIA INTERMEDIATE ENDED ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93 11/30/92*
==================================================
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.......................................... $ 9.82 $ 10.82 $ 10.29 $ 10.00
-------- ---------- -------- ---------
Net investment income....................................................... 0.50 0.49 0.50 0.41
Net realized and unrealized gain/(loss) on investments...................... 0.99 (0.98) 0.56 0.29
-------- ---------- -------- ---------
Net increase/(decrease) in net assets resulting from investment
operations................................................................ 1.49 (0.49) 1.06 0.70
Distributions:
Dividends from net investment income........................................ (0.50) (0.49) (0.50) (0.41)
Distributions in excess of net investment income............................ -- (0.00)# -- --
Distributions from net realized capital gains............................... -- (0.02) (0.03) --
-------- ---------- -------- ---------
Total distributions......................................................... (0.50) (0.51) (0.53) (0.41)
-------- ---------- -------- ---------
Net asset value, end of year................................................ $ 10.81 $ 9.82 $ 10.82 $ 10.29
======= ======= ======= =======
Total return++.............................................................. 15.42% (4.70)% 10.43% 7.07%+++
======= ======= ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).......................................... $40,383 $ 33,111 $30,738 $20,584
Ratio of operating expenses to average net assets........................... 0.55% 0.54% 0.46% 0.20%+
Ratio of operating expenses to average net assets including interest
expense................................................................... -- (a) 0.55% -- --
Ratio of net investment income to average net assets........................ 4.76% 4.74% 4.57% 5.25%+
Portfolio turnover rate..................................................... 17% 22% 6% 12%
Ratio of operating expenses to average net assets without waivers........... 0.80% 0.75% 0.77% 0.77%+
Net investment income per share without waivers............................. $ 0.47 $ 0.47 $ 0.46 $ 0.37
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------
YEAR PERIOD
NATIONS GEORGIA ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
=======================
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.......................................... $ 8.38 $ 10.02
-------- ----------
Net investment income....................................................... 0.51 0.46
Net realized and unrealized gain/(loss) on investments...................... 1.34 (1.64)
-------- ----------
Net increase/(decrease) in net assets resulting from investment
operations................................................................ 1.85 (1.18)
Dividends from net investment income........................................ (0.51) (0.46)
-------- ----------
Net asset value, end of year................................................ $ 9.72 $ 8.38
======= =======
Total return++.............................................................. 22.48% (12.07)%
======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).......................................... $ 2,628 $ 232
Ratio of operating expenses to average net assets........................... 0.40%(a) 0.21%+(a)
Ratio of net investment income to average net assets........................ 5.42% 5.60%+
Portfolio turnover rate..................................................... 26% 35%
Ratio of operating expenses to average net assets without waivers........... 1.09% 1.04%+
Net investment income per share without waivers............................. $ 0.44 $ 0.39
</TABLE>
- ---------------
* The Nations Georgia Intermediate Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on March 1, 1992, May
4, 1992, June 17, 1992 and June 7, 1993, respectively.
** The Nations Georgia Municipal Bond Fund's Trust A, Investor A, Investor C
and Investor N Shares commenced operations on January 13, 1994, December 30,
1993, November 3, 1994 and October 21, 1993, 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 $0.01 per share.
(a) The effect of interest expense on the operating ratio was less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
164
<PAGE> 338
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR A SHARES INVESTOR C SHARES N SHARES
------------------------------------------------ ------------------------------------------------- --------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92* 11/30/95 11/30/94 11/30/93 11/30/92* 11/30/95
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.82 $ 10.82 $ 10.28 $ 9.98 $ 9.82 $10.82 $10.29 $10.11 $ 9.82
-------- -------- -------- --------- -------- -------- -------- ---------- --------
0.48 0.47 0.48 0.30 0.45 0.43 0.42 0.20 0.45
0.99 (0.98 ) 0.57 0.30 0.99 (0.98) 0.56 0.18 0.99
-------- -------- -------- --------- -------- -------- -------- ---------- --------
1.47 (0.51 ) 1.05 0.60 1.44 (0.55) 0.98 0.38 1.44
(0.48 ) (0.47 ) (0.48 ) (0.30) (0.45) (0.43) (0.42) (0.20) (0.45)
-- (0.00 )# -- -- -- (0.00)# -- -- --
-- (0.02 ) (0.03 ) -- -- (0.02) (0.03) -- --
-------- -------- -------- --------- -------- -------- -------- ---------- --------
(0.48 ) (0.49 ) (0.51 ) (0.30) (0.45) (0.45) (0.45) (0.20) (0.45)
-------- -------- -------- --------- -------- -------- -------- ---------- --------
$ 10.81 $ 9.82 $ 10.82 $ 10.28 $10.81 $ 9.82 $10.82 $10.29 $10.81
======== ======== ======== ========= ======== ======== ======== ========== ========
15.20% (4.87 )% 10.37% 6.12%+++ 14.85% (5.25)% 9.61% 3.82%+++ 14.85%
======== ======== ======== ========= ======== ======== ======== ========== ========
$ 9,175 $10,401 $16,752 $ 3,809 $2,606 $2,397 $2,990 $ 992 $8,160
0.75% 0.72% 0.61% 0.34%+ 1.05% 1.12% 1.21% 0.91%+ 1.05%
-- (a) 0.73% -- -- --(a) 1.13% -- -- --(a)
4.56% 4.56% 4.42% 5.01%+ 4.26% 4.16% 3.82% 4.21%+ 4.26%
17% 22% 6% 12% 17% 22% 6% 12% 17%
1.00% 0.93% 0.92% 0.91%+ 1.30% 1.33% 1.52% 1.72%+ 1.30%
$ 0.45 $ 0.45 $ 0.45 $ 0.27 $ 0.42 $ 0.41 $ 0.39 $ 0.16 $ 0.42
<CAPTION>
YEAR PERIOD
ENDED ENDED
11/30/94 11/30/93*
------------------------------------
<S> <C>
$10.82 $10.61
-------- ----------
0.44 0.20
(0.98) 0.21
-------- ----------
(0.54) 0.41
(0.44) (0.20)
(0.00)# --
(0.02) --
-------- ----------
(0.46) (0.20)
-------- ----------
$ 9.82 $10.82
======== ==========
(5.17)% 3.86%
======== ==========
$7,269 $4,506
1.04% 0.96%+
1.05% --
4.24% 4.07%+
22% 6%
1.25% 1.27%+
$ 0.42 $ 0.18
</TABLE>
<TABLE>
<CAPTION>
INVESTOR
INVESTOR A SHARES INVESTOR C SHARES N SHARES
--------------------- --------------------- --------
YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94** 11/30/95 11/30/94** 11/30/95
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 8.38 $ 9.99 $ 8.38 $ 8.45 $ 8.38
-------- -------- -------- -------- --------
0.49 0.47 0.44 0.03 0.44
1.34 (1.61 ) 1.34 (0.07) 1.34
-------- -------- -------- -------- --------
1.83 (1.14 ) 1.78 (0.04) 1.78
(0.49 ) (0.47 ) (0.44) (0.03) (0.44)
-------- -------- -------- -------- --------
$ 9.72 $ 8.38 $ 9.72 $ 8.38 $ 9.72
======== ======== ======== ======== ========
22.25% (11.71 )% 21.59% (0.44)% 21.58%
======== ======== ======== ======== ========
$ 7 $ 6 $ 69 $ 2 $13,017
0.60%(a) 0.39%+(a) 1.15%(a) 0.96%+(a) 1.15%(a)
5.22% 5.42%+ 4.67% 4.85%+ 4.67%
26% 35% 26% 35% 26%
1.29% 1.22%+ 1.84% 1.79%+ 1.84%
$ 0.42 $ 0.40 $ 0.37 $ 0.02 $ 0.37
<CAPTION>
YEAR PERIOD
ENDED ENDED
11/30/94 11/30/93**
------------------------------------------------
<S> <C>
$ 9.81 $10.00
-------- ----------
0.45 0.04
(1.43) (0.19)
-------- ----------
(0.98) (0.15)
(0.45) (0.04)
-------- ----------
$ 8.38 $ 9.81
======== ==========
(10.28)% (1.49)%
======== ==========
$9,500 $4,820
0.96%(a) 0.70%+
4.85% 3.63%+
35% 30%
1.79% 2.08%+
$ 0.38 $ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
165
<PAGE> 339
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
--------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR PERIOD
NATIONS MARYLAND INTERMEDIATE ENDED ENDED ENDED ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90*
===================================================================
<S> <C> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year............ $ 10.00 $ 11.09 $ 10.72 $ 10.44 $ 10.21 $ 10.00
----------- ---------- -------- -------- -------- ----------
Net investment income......................... 0.51 0.50 0.52 0.55 0.60 0.16
Net realized and unrealized gain/(loss) on
investments................................. 0.98 (0.99) 0.44 0.31 0.24 0.21
----------- ---------- -------- -------- -------- ----------
Net increase/(decrease) in net assets
resulting from investment operations........ 1.49 (0.49) 0.96 0.86 0.84 0.37
Distributions:
Dividends from net investment income.......... (0.51) (0.50) (0.52) (0.55) (0.60) (0.16)
Distributions from net realized capital
gains....................................... (0.03) (0.10) (0.07) (0.03) (0.01) --
Distributions in excess of net realized
capital gains............................... -- (0.00)# -- -- -- --
----------- ---------- -------- -------- -------- ----------
Total distributions........................... (0.54) (0.60) (0.59) (0.58) (0.61) (0.16)
----------- ---------- -------- -------- -------- ----------
Net asset value, end of year.................. $ 10.95 $ 10.00 $ 11.09 $ 10.72 $ 10.44 $ 10.21
======== ========== ======== ======== ======= =========
Total return++................................ 15.16% (4.64)% 9.11% 8.41%+++ 8.46%+++ 3.72%+++
========= ========= ======= ======= ======= =========
Ratios to average net assets/supplemental
data:
Net assets, end of year (in 000's)............ $62,460 $ 61,349 $61,552 $48,192 $31,088 $ 11,087
Ratio of operating expenses to average net
assets...................................... 0.55%(a) 0.53%(a) 0.49% 0.39% 0.20% 0.21%+
Ratio of net investment income to average net
assets...................................... 4.76% 4.73% 4.73% 5.12% 5.76% 6.12%+
Portfolio turnover rate....................... 11% 22% 26% 38% 26% 49%
Ratio of operating expenses to average net
assets
without waivers............................. 0.80% 0.73% 0.73% 0.78% 0.71% 0.84%+
Net investment income per share without
waivers..................................... $ 0.48 $ 0.48 $ 0.49 $ 0.51 $ 0.55 $ 0.13
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
--------------------------
YEAR PERIOD
NATIONS MARYLAND ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
==========================
<S> <C> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year............ $ 8.37 $ 8.90
----------- ----------
Net investment income......................... 0.48 0.11
Net realized and unrealized gain/(loss) on
investments................................. 1.26 (0.53)
----------- ----------
Net increase/(decrease) in net assets
resulting from investment operations........ 1.74 (0.42)
Dividends from net investment income.......... (0.48) (0.11)
----------- ----------
Net asset value, end of year.................. $ 9.63 $ 8.37
======== ========
Total return++................................ 21.23% (4.89)%
======== ========
Ratios to average net assets/supplemental
data:
Net assets, end of year (in 000's)............ $ 2,595 $ 39
Ratio of operating expenses to average net
assets...................................... 0.40% 0.21%+(a)
Ratio of net investment income to average net
assets...................................... 5.14% 5.48%+
Portfolio turnover rate....................... 11% 39%
Ratio of operating expenses to average net
assets without waivers...................... 1.26% 1.30%+
Net investment income per share without
waivers..................................... $ 0.40 $ 0.09
</TABLE>
- ---------------
* The Nations Maryland Intermediate Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on September 1, 1990,
September 1, 1990, June 17, 1992 and June 8, 1993, respectively.
** The Nations Maryland Municipal Bond Fund's Trust A, Investor A, Investor C
and Investor N Shares commenced operations on September 20, 1994, November
4, 1993, November 3, 1994 and October 21, 1993, 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 $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
166
<PAGE> 340
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR
INVESTOR A SHARES INVESTOR C SHARES N SHARES
--------------------------------------------------------------------- ------------------------------------------ --------
YEAR YEAR YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90* 11/30/95 11/30/94 11/30/93 11/30/92* 11/30/95
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.00 $ 11.09 $ 10.72 $ 10.44 $10.21 $ 10.00 $10.00 $11.09 $10.72 $10.58 $10.00
-------- -------- -------- -------- -------- --------- -------- -------- -------- ---------- --------
0.48 0.48 0.51 0.54 0.60 0.16 0.45 0.44 0.40 0.19 0.45
0.98 (0.99) 0.44 0.31 0.24 0.21 0.98 (0.99) 0.44 0.14 0.98
-------- -------- -------- -------- -------- --------- -------- -------- -------- ---------- --------
1.46 (0.51) 0.95 0.85 0.84 0.37 1.43 (0.55) 0.84 0.33 1.43
(0.48) (0.48) (0.51) (0.54) (0.60) (0.16) (0.45) (0.44) (0.40) (0.19) (0.45)
(0.03) (0.10) (0.07) (0.03) (0.01) -- (0.03) (0.10) (0.07) -- (0.03)
-- (0.00)# -- -- -- -- -- (0.00)# -- -- --
-------- -------- -------- -------- -------- --------- -------- -------- -------- ---------- --------
(0.51) (0.58) (0.58) (0.57) (0.61) (0.16) (0.48) (0.54) (0.47) (0.19) (0.48)
-------- -------- -------- -------- -------- --------- -------- -------- -------- ---------- --------
$ 10.95 $ 10.00 $ 11.09 $ 10.72 $10.44 $ 10.21 $10.95 $10.00 $11.09 $10.72 $ 10.95
======= ======= ======= ======= ======- ------ ====== ====== ====== ======= =======
14.94% (4.82)% 8.96% 8.32%+++ 8.46%+++ 3.72%+++ 14.59% (5.20)% 8.30% 3.13%+++ 14.59%
======= ======= ====== ====== ===== ====== ====== ====== ======= =======
$21,208 $22,145 $22,144 $20,092 $9,934 $ 2,228 $2,808 $2,570 $4,424 $1,796 $4,485
0.75%(a) 0.71%(a) 0.64% 0.48% 0.20% 0.21%+ 1.05%(a) 1.11%(a) 1.24% 1.16%+ 1.05%(a)
4.56% 4.55% 4.58% 4.98% 5.76% 6.12%+ 4.26% 4.15% 3.98% 3.88%+ 4.26%
11% 22% 26% 38% 26% 49% 11% 22% 26% 38% 11%
1.00% 0.91% 0.88% 0.87% 0.71% 0.84%+ 1.30% 1.31% 1.48% 1.44%+ 1.30%
$ 0.45 $ 0.46 $ 0.48 $ 0.50 $ 0.55 $ 0.13 $ 0.42 $ 0.42 $ 0.38 $ 0.18 $ 0.42
<CAPTION>
INVESTOR
N SHARES
--------
YEAR PERIOD
ENDED ENDED
11/30/94 11/30/93*
=======================
<S> <C>
$11.09 $10.94
-------- ----------
0.45 0.21
(0.99) 0.17
-------- ----------
(0.54) 0.38
(0.45) (0.21)
(0.10) (0.02)
(0.00)# --
-------- ----------
(0.55) (0.23)
-------- ----------
$10.00 $11.09
====== ======
(5.12)% 3.53%
====== =======
$4,368 $3,234
1.03%(a) 0.99%+
4.23% 4.23%+
22% 26%
1.23% 1.23%+
$ 0.43 $ 0.20
</TABLE>
<TABLE>
<CAPTION>
INVESTOR
INVESTOR A SHARES INVESTOR C SHARES N SHARES
-------------------------------- ------------------- --------
YEAR YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93** 11/30/95 11/30/94** 11/30/95
----------------------------------------------------------------------------------------------------------------------------
SC> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 8.37 $ 9.77 $ 9.80 $ 8.37 $ 8.44 $ 8.37
-------- -------- -------- -------- -------- --------
0.46 0.49 0.03 0.41 0.03 0.41
1.26 (1.40) (0.03) 1.26 (0.07) 1.26
-------- -------- -------- -------- -------- --------
1.72 (0.91) -- 1.67 (0.04) 1.67
(0.46) (0.49) (0.03) (0.41) (0.03) (0.41)
-------- -------- -------- -------- -------- --------
$ 9.63 $ 8.37 $ 9.77 $ 9.63 $ 8.37 $ 9.63
======= ======= ======= ====== ====== =======
20.99% (9.59)% 0.05% 20.29% (0.45)% 20.33%
======= ======= ======= ====== ====== =======
$ 1,031 $ 9 $ 6 $ 2 $ 2 $10,002
0.60% 0.39%(a) 0.13%+ 1.15% 0.96%+(a) 1.15%
4.94% 5.30% 3.97%+ 4.39% 4.73%+ 4.39%
11% 39% 1% 11% 39% 11%
1.46% 1.48% 1.76%+ 2.01% 2.05%+ 2.01%
$ 0.38 $ 0.41 $ 0.02 $ 0.33 $ 0.02 $ 0.33
<CAPTION>
INVESTOR N
SHARES
-------------------
YEAR PERIOD
ENDED ENDED
11/30/94 11/30/93**
====================
<S> <C>
$ 9.77 $10.00
-------- ----------
0.44 0.04
(1.40) (0.23)
-------- ----------
(0.96) (0.19)
(0.44) (0.04)
-------- ----------
$ 8.37 $ 9.77
------ -------
(10.11)% (1.94)%
------ -------
$4,819 $3,048
0.96%(a) 0.73%+
4.73% 3.37%+
39% 1%
2.05% 2.36%+
$ 0.35 $ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
167
<PAGE> 341
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
---------------------------------------
YEAR YEAR PERIOD
NATIONS NORTH CAROLINA INTERMEDIATE ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93*
=================================
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year...................................................... $ 9.53 $ 10.46 $ 10.00
-------- -------- ---------
Net investment income................................................................... 0.45 0.44 0.43
Net realized and unrealized gain/(loss) on investments.................................. 0.99 (0.88 ) 0.46
-------- -------- ---------
Net increase/(decrease) in net assets resulting from investment operations.............. 1.44 (0.44 ) 0.89
Distributions:
Dividends from net investment income.................................................... (0.45 ) (0.44 ) (0.43)
Distributions in excess of net investment income........................................ (0.00 )# -- --
Distributions from net realized capital gains........................................... (0.01 ) (0.05 ) --
-------- -------- ---------
Total distributions..................................................................... (0.46 ) (0.49 ) (0.43)
-------- -------- ---------
Net asset value, end of year............................................................ $ 10.51 $ 9.53 $ 10.46
======= ======= =======
Total return++.......................................................................... 15.41% (4.34 )% 9.03%
======= ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)...................................................... $20,916 $14,148 $11,814
Ratio of operating expenses to average net assets....................................... 0.57%(a) 0.55%(a) 0.42%+
Ratio of net investment income to average net assets.................................... 4.47% 4.38% 4.23%+
Portfolio turnover rate................................................................. 57% 37% 29%
Ratio of operating expenses to average net assets without waivers....................... 0.84% 0.82% 0.85%+
Net investment income per share without waivers......................................... $ 0.43 $ 0.42 $ 0.39
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------
YEAR PERIOD
NATIONS NORTH CAROLINA ENDED ENDED
MUNICIPAL BOND FUND 11/30//95 11/30/94**
====================
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year...................................................... $ 8.36 $ 10.06
------- -------
Net investment income................................................................... 0.50 0.45
Net realized and unrealized gain/(loss) on investments.................................. 1.37 (1.70 )
------- -------
Net increase/(decrease) in net assets resulting from investment operations.............. 1.87 (1.25 )
Dividends from net investment income.................................................... (0.50 ) (0.45 )
------- -------
Net asset value, end of year............................................................ $ 9.73 $ 8.36
======= =======
Total return++.......................................................................... 22.87% (12.65 )%
======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)...................................................... $ 1,293 $ 531
Ratio of operating expenses to average net assets....................................... 0.38%(a) 0.21%+(a)
Ratio of net investment income to average net assets.................................... 5.43% 5.53%+
Portfolio turnover rate................................................................. 40% 29%
Ratio of operating expenses to average net assets without waivers....................... 0.96% 0.92%+
Net investment income per share without waivers......................................... $ 0.45 $ 0.40
</TABLE>
- ---------------
* The Nations North Carolina Intermediate Municipal Bond Fund's Trust A,
Investor A, Investor C and Investor N Shares commenced operations on
December 11, 1992, December 14, 1992, December 16, 1992 and June 7, 1993,
respectively.
** The Nations North Carolina Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on January 11, 1994,
November 1, 1993, November 3, 1994 and October 21, 1993, 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 $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
168
<PAGE> 342
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
----------------------------------- ----------------------------------- -----------------------------------
YEAR YEAR PERIOD YEAR YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93* 11/30/95 11/30/94 11/30/93* 11/30/95 11/30/94 11/30/93*
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.53 $ 10.46 $ 10.01 $ 9.53 $10.46 $ 9.99 $ 9.53 10.46 $ 10.31
------ ------- ------- ------ ------ ------- ------- ------- -------
0.43 0.42 0.42 0.40 0.38 0.35 0.40 0.39 0.18
0.99 (0.88 ) 0.45 0.99 (0.88) 0.47 0.99 (0.88 ) 0.15
------ ------- ------- ------ ------ ------- ------- ------- -------
1.42 (0.46 ) 0.87 1.39 (0.50) 0.82 1.39 (0.49 ) 0.33
(0.43) (0.42 ) (0.42) (0.40) (0.38) (0.35) (0.40 ) (0.39 ) (0.18)
(0.00)# -- -- (0.00)# -- -- (0.00 )# -- --
(0.01) (0.05 ) -- (0.01) (0.05) -- (0.01 ) (0.05 ) --
------ ------- ------- ------ ------ ------- ------- ------- -------
(0.44) (0.47 ) (0.42) (0.41) (0.43) (0.35) (0.41 ) (0.44 ) (0.18)
------ ------- ------- ------ ------ ------- ------- ------- -------
$10.51 $ 9.53 $ 10.46 $10.51 $ 9.53 $ 10.46 $ 10.51 $ 9.53 $ 10.46
====== ======= ======= ====== ====== ======= ======= ======= =======
15.18% (4.51 )% 8.76% 14.84% (4.89)% 8.26% 14.84% (4.82 )% 3.23%
====== ======= ======= ====== ====== ======= ======= ======= =======
$8,525 $ 8,896 $13,749 $1,366 $1,486 $ 1,592 $ 7,848 $ 5,706 $ 3,822
0.77%(a) 0.73%(a) 0.57%+ 1.07%(a) 1.13%(a) 1.17%+ 1.07%(a) 1.05%(a) 0.92%+
4.27% 4.20% 4.08%+ 3.97% 3.80% 3.48%+ 3.97% 3.88% 3.73%+
57% 37% 29% 57% 37% 29% 57% 37% 29%
1.04% 1.00% 1.00%+ 1.34% 1.40% 1.60%+ 1.34% 1.32% 1.35%+
$ 0.41 $ 0.40 $ 0.38 $ 0.38 $ 0.36 $ 0.30 $ 0.38 $ 0.37 $ 0.17
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
----------------------------------- --------------------- -----------------------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93** 11/30/95 11/30/94** 11/30/95 11/30/94 11/30/93**
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 8.36 $ 9.85 $ 9.97 $ 8.36 $ 8.45 $ 8.36 $ 9.85 $ 10.00
------ ------- ------- ------ ------ ------- ------- -------
0.49 0.50 0.04 0.43 0.03 0.43 0.45 0.04
1.37 (1.49 ) (0.12) 1.37 (0.09) 1.37 (1.49 ) (0.15)
------ ------- ------- ------ ------ ------- ------- -------
1.86 (0.99 ) (0.08) 1.80 (0.06) 1.80 (1.04 ) (0.11)
(0.49) (0.50 ) (0.04) (0.43) (0.03) (0.43 ) (0.45 ) (0.04)
------ ------- ------- ------ ------ ------- ------- -------
$ 9.73 $ 8.36 $ 9.85 $ 9.73 $ 8.36 $ 9.73 $ 8.36 $ 9.85
====== ======= ======= ====== ====== ======= ======= =======
22.63% (10.41 )% (0.80)% 21.93% (0.67)% 21.96% (10.92 )% (1.11)%
====== ======= ======= ====== ====== ======= ======= =======
$ 347 $ 1,161 $ 1,085 $ 2 $ 2 $30,048 $23,659 $11,395
0.58%(a) 0.39%(a) 0.09%+ 1.13%(a) 0.96%+(a) 1.13%(a) 0.96%(a) 0.69%+
5.23% 5.35% 3.97%+ 4.68% 4.78%+ 4.68% 4.78% 3.37%+
40% 29% 10% 40% 29% 40% 29% 10%
1.16% 1.10% 1.21%+ 1.71% 1.67%+ 1.71% 1.67% 1.81%+
$ 0.44 $ 0.43 $ 0.03 $ 0.38 $ 0.03 $ 0.38 $ 0.38 $ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
169
<PAGE> 343
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
------------------------------------------------------
YEAR YEAR YEAR PERIOD
NATIONS SOUTH CAROLINA INTERMEDIATE ENDED ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93 11/30/92*
==============================================
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year....................................... $ 9.76 $ 10.61 $ 10.18 $ 10.00
-------- ---------- -------- ---------
Net investment income.................................................... 0.51 0.50 0.50 0.47
Net realized and unrealized gain/(loss) on investments................... 0.93 (0.84) 0.43 0.18
-------- ---------- -------- ---------
Net increase/(decrease) in net assets resulting from investment
operations............................................................. 1.44 (0.34) 0.93 0.65
Distributions:
Dividends from net investment income..................................... (0.51 ) (0.50) (0.50 ) (0.47)
Distributions in excess of net investment income......................... -- (0.00)# -- --
Distributions from net realized capital gains............................ -- (0.01) -- --
-------- ---------- -------- ---------
Total distributions...................................................... (0.51 ) (0.51) (0.50 ) (0.47)
-------- ---------- -------- ---------
Net asset value, end of year............................................. $ 10.69 $ 9.76 $ 10.61 $ 10.18
======= ======== ======= =======
Total return++........................................................... 15.02% (3.37)% 9.32% 6.62%+++
======= ======== ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)....................................... $45,255 $ 49,030 $56,995 $39,535
Ratio of operating expenses to average net assets........................ 0.55%(a) 0.54%(a) 0.45% 0.20%+
Ratio of net investment income to average net assets..................... 4.92% 4.82% 4.68% 4.11%+
Portfolio turnover rate.................................................. 11% 30% 11% 7%
Ratio of operating expenses to average net assets without waivers........ 0.75% 0.75% 0.75% 0.74%+
Net investment income per share without waivers.......................... $ 0.49 $ 0.48 $ 0.47 $ 0.42
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-------------------------
YEAR PERIOD
NATIONS SOUTH CAROLINA ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
=====================
<S> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year....................................... $ 8.65 $ 10.02
------- -------
Net investment income.................................................... 0.52 0.48
Net realized and unrealized gain/(loss) on investments................... 1.34 (1.37)
------- -------
Net increase/(decrease) in net assets resulting from
investment operations.................................................. 1.86 (0.89)
Dividends from net investment income..................................... (0.52 ) (0.48)
------- -------
Net asset value, end of year............................................. $ 9.99 $ 8.65
======= ========
Total return++........................................................... 21.99% (9.12)%
======= ========
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)....................................... $ 1,782 $ 400
Ratio of operating expenses to average net assets........................ 0.40%(a) 0.21%+(a)
Ratio of net investment income to average net assets..................... 5.44% 5.48%+
Portfolio turnover rate.................................................. 13% 14%
Ratio of operating expenses to average net assets without waivers........ 1.08% 1.12%+
Net investment income per share without waivers.......................... $ 0.46 $ 0.41
</TABLE>
- ---------------
* The Nations South Carolina Intermediate Municipal Bond Fund's Trust A,
Investor A, Investor C and Investor N Shares commenced operations on January
6, 1992, May 5, 1992, June 17, 1992 and June 8, 1993, respectively.
** The Nations South Carolina Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on December 27, 1993,
November 8, 1993, November 3, 1994 and October 21, 1993, 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 $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
170
<PAGE> 344
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
------------------------------------------------ ------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92* 11/30/95 11/30/94 11/30/93 11/30/92*
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.76 $ 10.61 $ 10.18 $ 9.98 $ 9.76 $10.61 $10.18 $ 10.05
-------- -------- -------- --------- -------- -------- -------- ---------
0.49 0.48 0.48 0.30 0.46 0.44 0.42 0.20
0.93 (0.84 ) 0.43 0.20 0.93 (0.84) 0.43 0.13
-------- -------- -------- --------- -------- -------- -------- ---------
1.42 (0.36 ) 0.91 0.50 1.39 (0.40) 0.85 0.33
(0.49 ) (0.48 ) (0.48 ) (0.30) (0.46) (0.44) (0.42) (0.20)
-- (0.00 )# -- -- -- (0.00)# -- --
-- (0.01 ) -- -- -- (0.01) -- --
-------- -------- -------- --------- -------- -------- -------- ---------
(0.49 ) (0.49 ) (0.48 ) (0.30) (0.46) (0.45) (0.42) (0.20)
-------- -------- -------- --------- -------- -------- -------- ---------
$ 10.69 $ 9.76 $ 10.61 $ 10.18 $10.69 $ 9.76 $10.61 $ 10.18
======== ======== ======== ========= ======== ======== ======== =========
14.79% (3.54 )% 9.16% 5.03%+++ 14.45% (3.94)% 8.51% 3.27%+++
======== ======== ======== ========= ======== ======== ======== =========
$14,452 $16,378 $20,024 $ 7,414 $5,527 $6,167 $8,499 $ 4,436
0.75%(a) 0.72%(a) 0.60% 0.33%+ 1.05%(a) 1.12%(a) 1.20% 0.88%+
4.72% 4.64% 4.53% 4.83%+ 4.42% 4.24% 3.93% 4.10%+
11% 30% 11% 7% 11% 30% 11% 7%
0.95% 0.93% 0.90% 0.85%+ 1.25% 1.33% 1.50% 1.48%+
$ 0.47 $ 0.46 $ 0.45 $ 0.27 $ 0.44 $ 0.42 $ 0.39 $ 0.17
<CAPTION>
INVESTOR N SHARES
--------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93*
- ----------------------------------------
<C> <C> <C>
$ 9.76 $10.61 $10.47
-------- -------- ----------
0.46 0.45 0.20
0.93 (0.84) 0.14
-------- -------- ----------
1.39 (0.39) 0.34
(0.46 ) (0.45) (0.20)
-- (0.00)# --
-- (0.01) --
-------- -------- ----------
(0.46 ) (0.46) (0.20)
-------- -------- ----------
$ 10.69 $ 9.76 $10.61
======== ======== -------
14.45% (3.85)% 3.23%
======== ======== -------
$ 6,457 $5,740 $4,057
1.05%(a) 1.04%(a) 0.95%+
4.42% 4.32% 4.18%+
11% 30% 11%
1.25% 1.25% 1.25%+
$ 0.44 $ 0.43 $ 0.19
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
---------------------------------- --------------------- ---------------------
YEAR YEAR YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93** 11/30/95 11/30/94** 11/30/95 11/30/94
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 8.65 $ 9.86 $ 9.87 $ 8.65 $ 8.73 $ 8.65 $ 9.86
-------- -------- -------- -------- -------- -------- --------
0.50 0.50 0.03 0.45 0.03 0.45 0.45
1.34 (1.21 ) (0.01 ) 1.34 (0.08) 1.34 (1.21)
-------- -------- -------- -------- -------- -------- --------
1.84 (0.71 ) 0.02 1.79 (0.05) 1.79 (0.76)
(0.50 ) (0.50 ) (0.03 ) (0.45) (0.03) (0.45 ) (0.45)
-------- -------- -------- -------- -------- -------- --------
$ 9.99 $ 8.65 $ 9.86 $ 9.99 $ 8.65 $ 9.99 $ 8.65
======== ======== ======== ======== ======== ======== ========
21.74% (7.45 )% 0.21% 21.01% (0.52)% 21.08% (7.97)%
======== ======== ======== ======== ======== ======== ========
$ 1,238 $ 140 $ 14 $ 20 $ 2 $12,670 $8,263
0.60%(a) 0.39%(a) 0.10%+ 1.15%(a) 0.96%+(a) 1.15%(a) 0.96%(a)
5.24% 5.30% 4.16%+ 4.69% 4.73%+ 4.69% 4.73%
13% 14% 8% 13% 14% 13% 14%
1.28% 1.30% 1.63%+ 1.83% 1.87%+ 1.83% 1.87%
$ 0.44 $ 0.42 $ 0.02 $ 0.39 $ 0.03 $ 0.39 $ 0.37
<CAPTION>
PERIOD
ENDED
11/30/93**
<S> <C>
$10.00
----------
0.04
(0.14)
----------
(0.10)
(0.04)
----------
$ 9.86
==========
(1.00)%
==========
$4,048
0.70%+
3.56%+
8%
2.23%+
$ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
171
<PAGE> 345
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
---------------------------------------
YEAR YEAR PERIOD
NATIONS TENNESSEE INTERMEDIATE ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93*
=================================
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year...................................................... $ 9.30 $10.18 $ 10.06
-------- -------- ---------
Net investment income................................................................... 0.46 0.45 0.29
Net realized and unrealized gain/(loss) on investments.................................. 0.93 (0.87) 0.12
-------- -------- ---------
Net increase/(decrease) in net assets resulting from investment operations.............. 1.39 (0.42) 0.41
Distributions:
Dividends from net investment income.................................................... (0.46) (0.45) (0.29)
Distributions in excess of net investment income........................................ -- (0.00)# --
Distributions from net realized capital gains........................................... -- (0.01) --
-------- -------- ---------
Total distributions..................................................................... (0.46) (0.46) (0.29)
-------- -------- ---------
Net asset value, end of year............................................................ $10.23 $ 9.30 $ 10.18
====== ====== ======
Total return++.......................................................................... 15.22% (4.24)% 4.09%
====== ====== ======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)...................................................... $7,160 $4,116 $ 2,123
Ratio of operating expenses to average net assets....................................... 0.57% 0.52% 0.27%+
Ratio of operating expenses including interest expense.................................. --(a) 0.53% --
Ratio of net investment income to average net assets.................................... 4.65% 4.56% 4.31%+
Portfolio turnover rate................................................................. 34% 41% 16%
Ratio of operating expenses to average net assets without waivers....................... 0.92% 0.89% 0.94%+
Net investment income per share without waivers......................................... $ 0.43 $ 0.41 $ 0.24
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------
YEAR PERIOD
NATIONS TENNESSEE ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
--------------------
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year...................................................... $ 8.58 $ 9.59
-------- --------
Net investment income................................................................... 0.52 0.39
Net realized and unrealized gain/(loss) on investments.................................. 1.29 (1.01)
-------- --------
Net increase/(decrease) in net assets resulting from investment operations.............. 1.81 (0.62)
Dividends from net investment income.................................................... (0.52) (0.39)
-------- --------
Net asset value, end of year............................................................ $ 9.87 $ 8.58
====== ======
Total return++.......................................................................... 21.52% (6.66)%
====== ======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)...................................................... $ 768 $ 311
Ratio of operating expenses to average net assets....................................... 0.40%(a) 0.21%+(a)
Ratio of net investment income to average net assets.................................... 5.49% 5.56%+
Portfolio turnover rate................................................................. 45% 38%
Ratio of operating expenses to average net assets without waivers....................... 1.27% 1.20%+
Net investment income per share without waivers......................................... $ 0.44 $ 0.32
</TABLE>
- ---------------
* The Nations Tennessee Intermediate Municipal Bond Fund's Trust A, Investor
A, Investor C and Investor N Shares commenced operations on April 13, 1993,
April 2, 1993, November 3, 1994 and June 10, 1993, respectively.
** The Nations Tennessee Municipal Bond Fund's Trust A, Investor A, Investor
C and Investor N Shares commenced operations on March 2, 1994, November 2, 1993,
November 3, 1994 and October 21, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated
and does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less
than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
172
<PAGE> 346
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
--------------------------------------- ------------------------ ---------------------------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93* 11/30/95 11/30/94* 11/30/95 11/30/94 11/30/93*
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.30 $10.18 $ 10.00 $ 9.30 $ 9.38 $ 9.30 $10.18 $ 10.03
-------- -------- --------- -------- --------- -------- -------- ---------
0.44 0.43 0.29 0.41 0.03 0.41 0.40 0.17
0.93 (0.87) 0.18 0.93 (0.08) 0.93 (0.87) 0.15
-------- -------- --------- -------- --------- -------- -------- ---------
1.37 (0.44) 0.47 1.34 (0.05) 1.34 (0.47) 0.32
(0.44) (0.43) (0.29) (0.41) (0.03) (0.41) (0.40) (0.17)
-- (0.00)# -- -- -- -- (0.00)# --
-- (0.01) -- -- -- -- (0.01) --
-------- -------- --------- -------- --------- -------- -------- ---------
(0.44) (0.44) (0.29) (0.41) (0.03) (0.41) (0.41) (0.17)
-------- -------- --------- -------- --------- -------- -------- ---------
$10.23 $ 9.30 $ 10.18 $10.23 $ 9.30 $10.23 $ 9.30 $ 10.18
====== ====== ======= ====== ====== ====== ====== ======
15.00% (4.41)% 4.68% 14.62% (0.53)% 14.65% (4.72)% 3.32%
====== ====== ======= ====== ====== ====== ====== ======
$7,573 $7,831 $15,573 $ 2 $ 2 $3,573 $3,368 $ 2,210
0.77% 0.70% 0.42%+ 1.07% 1.02%+ 1.07% 1.02% 0.77%+
--(a) 0.71% -- --(a) 1.03%+ --(a) 1.03% --
4.45% 4.38% 4.16%+ 4.15% 4.06%+ 4.15% 4.06% 3.81%+
34% 41% 16% 34% 41% 34% 41% 16%
1.12% 1.07% 1.09%+ 1.42% 1.39%+ 1.42% 1.39% 1.44%+
$ 0.41 $ 0.40 $ 0.24 $ 0.38 $ 0.02 $ 0.38 $ 0.37 $ 0.14
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
--------------------------------------- ------------------------ ---------------------------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93** 11/30/95 11/30/94** 11/30/95 11/30/94 11/30/93**
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 8.58 $ 9.80 $ 9.88 $ 8.58 $ 8.62 $ 8.58 $ 9.80 $ 10.00
-------- -------- --------- -------- --------- -------- -------- ---------
0.50 0.50 0.04 0.45 0.03 0.45 0.45 0.04
1.29 (1.22) (0.08) 1.29 (0.04) 1.29 (1.22) (0.20)
-------- -------- --------- -------- --------- -------- -------- ---------
1.79 (0.72) (0.04) 1.74 (0.01) 1.74 (0.77) (0.16)
(0.50) (0.50) (0.04) (0.45) (0.03) (0.45) (0.45) (0.04)
-------- -------- --------- -------- --------- -------- -------- ---------
$ 9.87 $ 8.58 $ 9.80 $ 9.87 $ 8.58 $ 9.87 $ 8.58 $ 9.80
====== ====== ====== ====== ====== ====== ====== ======
21.28% (7.58)% (0.43)% 20.62% (0.07)% 20.63% (8.10)% (1.61)%
====== ====== ====== ====== ====== ====== ====== ======
$ 203 $ 43 $ 34 $ 64 $ 2 $6,619 $5,504 $ 3,284
0.60%(a) 0.39%(a) 0.17%+ 1.15%(a) 0.96%+(a) 1.15%(a) 0.96%(a) 0.77%+
5.29% 5.38% 4.31%+ 4.74% 4.81%+ 4.74% 4.81% 3.71%+
45% 38% 3% 45% 38% 45% 38% 3%
1.47% 1.38% 1.86%+ 2.02% 1.95%+ 2.02% 1.95% 2.46%+
$ 0.42 $ 0.42 $ 0.03 $ 0.37 $ 0.02 $ 0.37 $ 0.37 $ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
173
<PAGE> 347
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
-------------------------------------
YEAR YEAR PERIOD
NATIONS TEXAS INTERMEDIATE ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93*
-------------------------------
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year....................................................... $ 9.53 $ 10.35 $ 10.00
-------- ---------- ---------
Net investment income.................................................................... 0.46 0.44 0.41
Net realized and unrealized gain/(loss) on investments................................... 0.83 (0.79) 0.35
-------- ---------- ---------
Net increase/(decrease) in net assets resulting from
investment operations.................................................................. 1.29 (0.35) 0.76
Distributions:
Dividends from net investment income..................................................... (0.46 ) (0.44) (0.41)
Distributions in excess of net investment income......................................... -- (0.00)# --
Distributions from net realized capital gains............................................ -- (0.03) --
-------- ---------- ---------
Total distributions...................................................................... (0.46 ) (0.47) (0.41)
-------- ---------- ---------
Net asset value, end of year............................................................. $ 10.36 $ 9.53 $ 10.35
======= ======= =======
Total return++........................................................................... 13.83% (3.48)% 7.72%
======= ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)....................................................... $26,382 $ 24,066 $31,875
Ratio of operating expenses to average net assets........................................ 0.57%(a) 0.55%(a) 0.44%+
Ratio of net investment income to average net assets..................................... 4.62% 4.40% 4.43%+
Portfolio turnover rate.................................................................. 64% 61% 63%
Ratio of operating expenses to average net assets
without waivers........................................................................ 0.83% 0.78% 0.82%+
Net investment income per share without waivers.......................................... $ 0.44 $ 0.42 $ 0.38
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------
YEAR PERIOD
NATIONS TEXAS ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
-------------------
<S> <C> <C>
Operating performance:
Net asset value, beginning of year....................................................... $ 8.39 $ 10.01
------- -------
Net investment income.................................................................... 0.50 0.42
Net realized and unrealized gain/(loss) on investments................................... 1.31 (1.62)
------- -------
Net increase/(decrease) in net assets resulting from investment operations............... 1.81 (1.20)
Dividends from net investment income..................................................... (0.50 ) (0.42)
------- -------
Net asset value, end of year............................................................. $ 9.70 $ 8.39
======= =======
Total return++........................................................................... 22.09% (12.21)%
======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)....................................................... $ 4,613 $ 2,285
Ratio of operating expenses to average net assets........................................ 0.39%(a) 0.22%+(a)
Ratio of net investment income to average net assets..................................... 5.45% 5.52%+
Portfolio turnover rate.................................................................. 50% 107%
Ratio of operating expenses to average net assets without waivers........................ 1.05% 1.06%+
Net investment income per share without waivers.......................................... $ 0.44 $ 0.35
</TABLE>
- ---------------
* The Nations Texas Intermediate Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on January 12, 1993,
February 4, 1993, November 3, 1994 and June 22, 1993, respectively.
** The Nations Texas Municipal Bond Fund's Trust A, Investor A, Investor C
and Investor N Shares commenced operations on February 3, 1994, December 17,
1993, November 3, 1994 and October 21, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated
and does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less
than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
174
<PAGE> 348
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
----------------------------------- ----------------------- ------------------------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93* 11/30/95 11/30/94* 11/30/95 11/30/94 11/30/93*
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.53 $10.35 $ 10.15 $ 9.53 $ 9.55 $ 9.53 $ 10.35 $10.25
-------- -------- --------- -------- ---------- -------- -------- ----------
0.44 0.42 0.37 0.41 0.03 0.41 0.39 0.17
0.83 (0.79) 0.20 0.83 (0.02) 0.83 (0.79) 0.10
-------- -------- --------- -------- ---------- -------- -------- ----------
1.27 (0.37) 0.57 1.24 0.01 1.24 (0.40) 0.27
(0.44) (0.42) (0.37) (0.41) (0.03) (0.41) (0.39) (0.17)
-- (0.00)# -- -- (0.00)# -- (0.00)# --
-- (0.03) -- -- -- -- (0.03) --
-------- -------- --------- -------- ---------- -------- -------- ----------
(0.44) (0.45) (0.37) (0.41) (0.03) (0.41) (0.42) (0.17)
-------- -------- --------- -------- ---------- -------- -------- ----------
$10.36 $ 9.53 $ 10.35 $10.36 $ 9.53 $ 10.36 $ 9.53 $10.35
====== ====== ====== ====== ======= ======= ======= =======
13.60% (3.66)% 5.64% 13.27% 0.08% 13.27% (3.96)% 2.61%
====== ====== ====== ====== ======= ======= ======= =======
$ 806 $ 718 $ 968 $ 570 $ 2 $ 3,136 $ 2,774 $1,330
0.77%(a) 0.73%(a) 0.59%+ 1.07%(a) 1.05%+(a) 1.07%(a) 1.05%(a) 0.94%+
4.42% 4.22% 4.28%+ 4.12% 3.90%+ 4.12% 3.90% 3.93%+
64% 61% 63% 64% 61% 64% 61% 63%
1.03% 0.96% 0.97%+ 1.33% 1.28%+ 1.33% 1.28% 1.32%+
$ 0.42 $ 0.40 $ 0.34 $ 0.39 $ 0.02 $ 0.39 $ 0.37 $ 0.16
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
--------------------- ----------------------- ------------------------------------
YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94** 11/30/95 11/30/94** 11/30/95 11/30/94 11/30/93**
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 8.39 $ 9.92 $ 8.39 $ 8.46 $ 8.39 $ 9.78 $10.00
------ ------ ------ ------- ------- ------- -------
0.49 0.47 0.43 0.03 0.43 0.44 0.04
1.31 (1.53) 1.31 (0.07) 1.31 (1.39) (0.22)
------ ------ ------ ------- ------- ------- -------
1.80 (1.06) 1.74 (0.04) 1.74 (0.95) (0.18)
(0.49) (0.47) (0.43) (0.03) (0.43) (0.44) (0.04)
------ ------ ------ ------- ------- ------- -------
$ 9.70 $ 8.39 $ 9.70 $ 8.39 $ 9.70 $ 8.39 $ 9.78
====== ====== ====== ======= ======= ======= =======
21.85% (10.98)% 21.15% (0.43)% 21.19% (9.98)% (1.82)%
====== ====== ====== ======= ======= ======= =======
$ 351 $ 55 $ 70 $ 2 $12,587 $10,812 $6,154
0.59%(a) 0.40%+(a) 1.14%(a) 0.97%+(a) 1.14%(a) 0.97%(a) 0.70%+
5.25% 5.34%+ 4.70% 4.77%+ 4.70% 4.77% 3.32%+
50% 107% 50% 107% 50% 107% 5%
1.25% 1.24%+ 1.80% 1.81%+ 1.80% 1.81% 2.05%+
$ 0.43 $ 0.39 $ 0.37 $ 0.02 $ 0.37 $ 0.37 $ 0.03
-------- --------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
175
<PAGE> 349
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
NATIONS VIRGINIA INTERMEDIATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90 11/30/89*
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.... $ 9.94 $ 10.99 $ 10.59 $ 10.34 $ 10.14 $ 10.08 $ 10.00
-------- ---------- -------- -------- -------- -------- ---------
Net investment income................. 0.51 0.50 0.48 0.54 0.58 0.61 0.12
Net realized and unrealized
gain/(loss) on investments........... 0.89 (0.96) 0.42 0.29 0.21 0.11 0.03
-------- ---------- -------- -------- -------- -------- ---------
Net increase/(decrease) in net assets
resulting from
investment operations................ 1.40 (0.46) 0.90 0.83 0.79 0.72 0.15
Distributions:
Dividends from net investment
income............................... (0.51) (0.50) (0.48) (0.54) (0.58) (0.66) (0.07)
Distributions from net realized
capital gains........................ (0.00)# (0.09) (0.02) (0.04) (0.01) -- --
Distributions in excess of net
realized capital gains............... -- (0.00)# -- -- -- -- --
-------- ---------- -------- -------- -------- -------- ---------
Total distributions................... (0.51) (0.59) (0.50) (0.58) (0.59) (0.66) (0.07)
-------- ---------- -------- -------- -------- -------- ---------
Net asset value, end of year.......... $ 10.83 $ 9.94 $ 10.99 $ 10.59 $ 10.34 $ 10.14 $ 10.08
====== ======= ====== ====== ====== ====== ======
Total return++........................ 14.39% (4.35)% 9.08% 8.28%+++ 8.04%+++ 7.41%+++ 1.46%+++
====== ======= ====== ====== ====== ====== ======
Ratios to average net
assets/supplemental data:
Net assets, end of year (in 000's).... $157,252 $167,405 $193,084 $157,773 $119,757 $75,962 $46,560
Ratio of operating expenses to average
net assets........................... 0.56%(a) 0.61%(a) 0.57% 0.56% 0.45% 0.26% 0.16%+
Ratio of net investment income to
average net assets................... 4.87% 4.76% 4.80% 5.17% 5.67% 6.09% 6.09%+
Portfolio turnover rate............... 22% 14% 26% 13% 24% 19% 12%
Ratio of operating expenses to average
net assets without waivers........... 0.74% 0.73% 0.69% 0.68% 0.73% 0.80% 0.81%+
Net investment income per share
without waivers...................... $ 0.49 $ 0.49 $ 0.47 $ 0.53 $ 0.55 $ 0.55 $ 0.08
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------
YEAR PERIOD
NATIONS VIRGINIA ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94**
-----------------
<S> <C> <C>
Operating performance:
Net asset value, beginning of year.... $ 8.29 $ 10.00
------ -------
Net investment income................. 0.51 0.45
Net realized and unrealized
gain/(loss) on investments........... 1.33 (1.71)
------ -------
Net increase/(decrease) in net assets
resulting from investment
operations........................... 1.84 (1.26)
Dividends from net investment
income............................... (0.51) (0.45)
------ -------
Net asset value, end of year.......... $ 9.62 $ 8.29
====== =======
Total return++........................ 22.63% (12.86)%
====== =======
Ratios to average net
assets/supplemental data:
Net assets, end of year (in 000's).... $ 3,527 $ 432
Ratio of operating expenses to average
net assets........................... 0.39%(a) 0.21%+(a)
Ratio of net investment income to
average net assets................... 5.51% 5.52%+
Portfolio turnover rate............... 16% 61%
Ratio of operating expenses to average
net assets without waivers........... 1.04% 0.99%+
Net investment income per share
without waivers...................... $ 0.46 $ 0.38
</TABLE>
- ---------------
* The Nations Virginia Intermediate Municipal Bond Fund's Trust A, Investor A,
Investor C and Investor N Shares commenced operations on September 20, 1989,
December 5, 1989, June 17, 1992 and June 7, 1993, respectively.
** The Nations Virginia Municipal Bond Fund's Trust A, Investor A, Investor C
and Investor N Shares commenced operations on January 11, 1994, November 8,
1993, November 3, 1994 and October 21, 1993, 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 $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
176
<PAGE> 350
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
------------------------------------------------------------------------- ------------------------------------------------
YEAR YEAR YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91 11/30/90* 11/30/95 11/30/94 11/30/93 11/30/92*
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.94 $ 10.99 $ 10.59 $ 10.34 $ 10.14 $ 10.08 $ 9.94 $10.99 $ 10.59 $ 10.44
-------- -------- -------- -------- -------- -------- -------- -------- -------- ---------
0.49 0.48 0.51 0.54 0.58 0.61 0.46 0.44 0.44 0.19
0.89 (0.96) 0.42 0.29 0.21 0.11 0.89 (0.96) 0.42 0.15
-------- -------- -------- -------- -------- -------- -------- -------- -------- ---------
1.38 (0.48) 0.93 0.83 0.79 0.72 1.35 (0.52) 0.86 0.34
(0.49) (0.48) (0.51) (0.54) (0.58) (0.66) (0.46) (0.44) (0.44) (0.19)
(0.00)# (0.09) (0.02) (0.04) (0.01) -- (0.00)# (0.09) (0.02) --
-- (0.00)# -- -- -- -- -- (0.00)# -- --
-------- -------- -------- -------- -------- -------- -------- -------- -------- ---------
(0.49) (0.57) (0.53) (0.58) (0.59) (0.66) (0.46) (0.53) (0.46) (0.19)
-------- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 10.83 $ 9.94 $ 10.99 $ 10.59 $ 10.34 $ 10.14 $10.83 $ 9.94 $ 10.99 $ 10.59
======== ======== ======== ======== ======== ======== ======== ======== ======== =========
14.16% (4.52) % 8.91% 8.18%+++ 8.04%+++ 7.41%+++ 13.82% (4.90)% 8.25% 3.36%+++
======== ======== ======== ======== ======== ======== ======== ======== ======== =========
$73,253 $79,412 $103,689 $76,650 $44,540 $24,303 $7,152 $8,372 $11,176 $ 4,769
0.76%(a) 0.79%(a) 0.72% 0.65% 0.45% 0.26%+ 1.06%(a) 1.19%(a) 1.32% 1.28%+
4.67% 4.58% 4.65% 5.04% 5.67% 6.09%+ 4.37% 4.18% 4.05% 3.99%+
22% 14% 26% 13% 24% 19% 22% 14% 26% 13%
0.94% 0.91% 0.84% 0.97% 0.73% 0.80%+ 1.24% 1.31% 1.44% 2.80%+
$ 0.47 $ 0.47 $ 0.49 $ 0.50 $ 0.55 $ 0.55 $ 0.44 $ 0.43 $ 0.43 $ 0.12
<CAPTION>
INVESTOR N SHARES
-----------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93*
<S> <C> <C>
$ 9.94 $10.99 $ 10.83
-------- -------- ---------
0.46 0.45 0.21
0.89 (0.96) 0.16
-------- -------- ---------
1.35 (0.51) 0.37
(0.46) (0.45) (0.21)
(0.00)# (0.09) --
-- (0.00)# --
-------- -------- ---------
(0.46) (0.54) (0.21)
-------- -------- ---------
$ 10.83 $ 9.94 $ 10.99
------ ----- -----
13.82% (4.82)% 3.48%
------ ----- -----
$12,163 $9,690 $ 5,249
1.06%(a) 1.11%(a) 1.07%+
4.37% 4.26% 4.30%+
22% 14% 26%
1.24% 1.23% 1.19%+
$ 0.44 $ 0.43 $ 0.20
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
---------------------------------- --------------------- ------------------------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93** 11/30/95 11/30/94** 11/30/95 11/30/94 11/30/93**
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 8.29 $ 9.77 $ 9.84 $ 8.29 $ 8.38 $ 8.29 $ 9.77 $ 10.00
-------- -------- -------- -------- -------- -------- -------- ---------
0.49 0.49 0.03 0.44 0.03 0.44 0.44 0.04
1.33 (1.48) (0.07) 1.33 (0.09) 1.33 (1.48) (0.23)
-------- -------- -------- -------- -------- -------- -------- ---------
1.82 (0.99) (0.04) 1.77 (0.06) 1.77 (1.04) (0.19)
(0.49) (0.49) (0.03) (0.44) (0.03) (0.44) (0.44) (0.04)
-------- -------- -------- -------- -------- -------- -------- ---------
$ 9.62 $ 8.29 $ 9.77 $ 9.62 $ 8.29 $ 9.62 $ 8.29 $ 9.77
======== ======== ======= ======== ======== ======== ======== =========
22.39% (10.44) % (0.42)% 21.71% (0.67)% 21.72% (10.95)% (1.93)%
======== ======== ======= ======== ======== ======== ======== =========
$ 650 $ 168 $ 25 $ 34 $ 2 $16,489 $12,738 $ 6,580
0.59%(a) 0.39%(a) 0.10%+ 1.14%(a) 0.96%+(a) 1.14%(a) 0.96%(a) 0.70%+
5.31% 5.34% 3.88%+ 4.76% 4.77%+ 4.76% 4.77% 3.28%+
16% 61% 0% 16% 61% 16% 61% 0%
1.24% 1.17% 1.30%+ 1.79% 1.74%+ 1.79% 1.74% 1.90%+
$ 0.44 $ 0.43 $ 0.02 $ 0.39 $ 0.03 $ 0.39 $ 0.37 $ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
177
<PAGE> 351
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------------------
YEAR YEAR PERIOD
NATIONS SHORT-TERM ENDED ENDED ENDED
MUNICIPAL INCOME FUND 11/30/95 11/30/94 11/30/93*
-----------------------------
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.......................................................... $ 9.69 $ 9.96 $ 10.00
-------- -------- ---------
Net investment income....................................................................... 0.44 0.38 0.05
Net realized and unrealized gain/(loss) on investments...................................... 0.34 (0.27) (0.04)
-------- -------- ---------
Net increase in net assets resulting from investment operations............................. 0.78 0.11 0.01
Distributions:
Dividends from net investment income........................................................ (0.44) (0.38) (0.05)
Distributions from net realized capital gains............................................... -- (0.00)# --
-------- -------- ---------
Total distributions......................................................................... (0.44) (0.38) (0.05)
-------- -------- ---------
Net asset value, end of year................................................................ $ 10.03 $ 9.69 $ 9.96
------- ------- ------
Total return++.............................................................................. 8.16% 1.09% 0.06%
------- ------- ------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).......................................................... $49,961 $33,488 $ 5,999
Ratio of operating expenses to average net assets........................................... 0.45%(a) 0.34%(a) 0.09%+
Ratio of net investment income to average net assets........................................ 4.38% 3.83% 3.16%+
Portfolio turnover rate..................................................................... 82% 57% 45%
Ratio of operating expenses to average net assets without waivers........................... 0.93% 0.80% 1.04%+
Net investment income per share without waivers............................................. $ 0.39 $ 0.33 $ 0.04
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
------------------------------------
YEAR YEAR PERIOD
NATIONS INTERMEDIATE ENDED ENDED ENDED
MUNICIPAL BOND FUND 11/30/95 11/30/94 11/30/93**
------------------------------
<S> <C> <C> <C>
Operating performance:
Net asset value, beginning of year......................................................... $ 9.24 $ 10.11 $ 10.00
-------- -------- ----------
Net investment income...................................................................... 0.48 0.45 0.14
Net realized and unrealized gain/(loss) on investments..................................... 0.93 (0.86) 0.11
-------- -------- ----------
Net increase/(decrease) in net assets resulting from investment operations................. 1.41 (0.41) 0.25
Distributions:
Dividends from net investment income....................................................... (0.48 ) (0.45 ) (0.14)
Distributions in excess of net investment income........................................... -- (0.00 )# --
Distributions from net realized capital gains.............................................. -- (0.01 ) --
-------- -------- ----------
Total distributions........................................................................ (0.48) (0.46) (0.14)
-------- -------- ----------
Net asset value, end of year............................................................... $ 10.17 $ 9.24 $ 10.11
------- ------- -------
Total return++............................................................................. 15.60% (4.25)% 2.46%
------- ------- -------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's)......................................................... $73,897 $38,055 $ 28,335
Ratio of operating expenses to average net assets.......................................... 0.45%(a) 0.35%(a) 0.24%+
Ratio of net investment income to average net assets....................................... 4.91% 4.59% 4.07%+
Portfolio turnover rate.................................................................... 31% 51% 23%
Ratio of operating expenses to average net assets without waivers.......................... 0.84% 0.88% 0.96%+
Net investment income per share without waivers............................................ $ 0.45 $ 0.40 $ 0.12
</TABLE>
- ---------------
* The Nations Short-Term Municipal Income Fund's Trust A, Investor A, Investor
C and Investor N Shares commenced operations on October 7, 1993, November 2,
1993, May 19, 1994 and October 12, 1993, respectively.
** The Nations Intermediate Municipal Bond Fund's Trust A, Investor A, Investor
C and Investor N Shares commenced operations on July 30, 1993, August 17,
1993, November 3, 1994 and December 2, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charges.
# Amount represents less that $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
178
<PAGE> 352
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
----------------------------------- ----------------------- -------------------------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93* 11/30/95 11/30/94* 11/30/95 11/30/94 11/30/93*
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.69 $ 9.96 $ 9.98 $ 9.69 $ 9.84 $ 9.69 $ 9.96 $ 10.00
-------- -------- --------- -------- ---------- -------- ---------- ---------
0.42 0.36 0.03 0.42 0.19 0.40 0.34 0.04
0.34 (0.27) (0.02) 0.34 (0.15) 0.34 (0.27) (0.04)
-------- -------- --------- -------- ---------- -------- ---------- ---------
0.76 0.09 0.01 0.76 0.04 0.74 0.07 --
(0.42) (0.36) (0.03) (0.42) (0.19) (0.40) (0.34) (0.04)
-- (0.00)# -- -- (0.00)# -- (0.00)# --
-------- -------- --------- -------- ---------- -------- ---------- ---------
(0.42) (0.36) (0.03) (0.42) (0.19) (0.40) (0.34) (0.04)
-------- -------- --------- -------- ---------- -------- ---------- ---------
$10.03 $ 9.69 $ 9.96 $10.03 $ 9.69 $10.03 $ 9.69 $ 9.96
====== ====== ======= ====== ======= ====== ======== =======
7.95% 0.90% 0.06% 7.95% 0.45% 7.78% 0.73% (0.02)%
====== ====== ======= ====== ======= ====== ======== =======
$3,741 $ 217 $ 731 $1,953 $ 323 $9,803 $ 13,421 $ 5,863
0.65%(a) 0.52%(a) 0.24%+ 0.70%(a) 0.59%+(a) 0.80%(a) 0.69%(a) 0.44%+
4.18% 3.65% 3.01%+ 4.13% 3.58%+ 4.03% 3.48% 2.81%+
82% 57% 45% 82% 57% 82% 57% 45%
1.13% 0.99% 1.19%+ 1.18% 1.05%+ 1.28% 1.15% 1.39%+
$ 0.37 $ 0.33 $ 0.02 $ 0.37 $ 0.18 $ 0.35 $ 0.31 $ 0.04
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES INVESTOR N SHARES
----------------------------------- ----------------------- -----------------------
YEAR YEAR PERIOD YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93** 11/30/95 11/30/94** 11/30/95 11/30/94**
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.24 $10.11 $ 10.10 $ 9.24 $ 9.35 $ 9.24 $10.13
-------- -------- --------- -------- ---------- -------- ----------
0.47 0.42 0.12 0.43 0.03 0.43 0.39
0.93 (0.86) 0.01 0.93 (0.11) 0.93 (0.88)
-------- -------- --------- -------- ---------- -------- ----------
1.40 (0.44) 0.13 1.36 (0.08) 1.36 (0.49)
(0.47) (0.42) (0.12) (0.43) (0.03) (0.43) (0.39)
-- (0.00)# -- -- -- -- (0.00)#
-- (0.01) -- -- -- -- (0.01)
-------- -------- --------- -------- ---------- -------- ----------
(0.47) (0.43) (0.12) (0.43) (0.03) (0.43) (0.40)
-------- -------- --------- -------- ---------- -------- ----------
$10.17 $ 9.24 $ 10.11 $10.17 $ 9.24 $10.17 $ 9.24
====== ====== ======= ====== ====== ====== =======
15.38% (4.48)% 1.28% 14.96% (0.52)% 15.02% (5.00)%
====== ====== ====== ====== ====== ====== =======
$1,249 $ 172 $ 68 $ 359 $ 2 $1,352 $ 943
0.65%(a) 0.53%(a) 0.39%+ 0.95%(a) 0.85%+(a) 0.95%(a) 0.85%+(a)
4.71% 4.41% 3.92%+ 4.41% 4.09%+ 4.41% 4.09%+
31% 51% 23% 31% 51% 31% 51%
1.04% 1.06% 1.11%+ 1.34% 1.38%+ 1.34% 1.38%+
$ 0.44 $ 0.38 $ 0.10 $ 0.40 $ 0.02 $ 0.40 $ 0.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
179
<PAGE> 353
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
TRUST A SHARES
---------------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
NATIONS MUNICIPAL INCOME FUND 11/30/95 11/30/94 11/30/93 11/30/92 11/30/91*
-----------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of year.............................. $ 9.64 $ 11.33 $ 10.65 $ 10.25 $ 10.00
-------- -------- -------- -------- ---------
Net investment income........................................... 0.59 0.57 0.59 0.59 0.52
Net realized and unrealized gain/(loss) on investments.......... 1.44 (1.44) 0.72 0.41 0.25
-------- -------- -------- -------- ---------
Net increase/(decrease) in net assets resulting from
investment operations......................................... 2.03 (0.87) 1.31 1.00 0.77
Distributions:
Dividends from net investment income............................ (0.59) (0.57) (0.59) (0.59) (0.52)
Distributions in excess of net investment income................ -- (0.00)# -- -- --
Distributions from net realized capital gains................... -- (0.25) (0.04) (0.01) --
-------- -------- -------- -------- ---------
Total distributions............................................. (0.59) (0.82) (0.63) (0.60) (0.52)
-------- -------- -------- -------- ---------
Net asset value, end of year.................................... $ 11.08 $ 9.64 $ 11.33 $ 10.65 $ 10.25
======= ======= ======= ======= =======
Total return++.................................................. 21.55% (8.17)% 12.54% 9.97%+++ 7.87%+++
======= ======= ======= ======= =======
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's).............................. $68,836 $59,279 $88,386 $62,387 $23,631
Ratio of operating expenses to average net assets............... 0.60% 0.61% 0.52% 0.43% 0.20%+
Ratio of operating expenses to average net assets including
interest expense.............................................. -- (a) 0.62% -- -- --
Ratio of net investment income to average net assets............ 5.63% 5.42% 5.24% 5.51% 6.07%+
Portfolio turnover rate......................................... 49% 63% 48% 19% 54%
Ratio of operating expenses to average net assets without
waivers....................................................... 0.88% 0.90% 0.84% 0.90% 0.88%+
Net investment income per share without waivers................. $ 0.56 $ 0.54 $ 0.55 $ 0.54 $ 0.45
</TABLE>
- ---------------
* The Nations Municipal Income Fund's Trust A, Investor A, Investor C and
Investor N Shares commenced operations on February 1, 1991, February 1,
1991, June 17, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less that $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
180
<PAGE> 354
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
----------------------------------------------------------- ----------------------------------------------
YEAR YEAR YEAR YEAR PERIOD YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93 11/30/92 11/30/91* 11/30/95 11/30/94 11/30/93 11/30/92*
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.64 $ 11.33 $ 10.65 $ 10.25 $ 10.00 $ 9.64 $11.33 $10.65 $ 10.48
-------- -------- -------- -------- --------- -------- -------- -------- ---------
0.57 0.55 0.57 0.58 0.52 0.51 0.49 0.50 0.21
1.44 (1.44) 0.72 0.41 0.25 1.44 (1.44) 0.72 0.17
-------- -------- -------- -------- --------- -------- -------- -------- ---------
2.01 (0.89) 1.29 0.99 0.77 1.95 (0.95) 1.22 0.38
(0.57) (0.55) (0.57) (0.58) (0.52) (0.51) (0.49) (0.50) (0.21)
-- (0.00)# -- -- -- -- (0.00)# -- --
-- (0.25) (0.04) (0.01) -- -- (0.25) (0.04) --
-------- ------- -------- -------- --------- -------- -------- -------- ---------
(0.57) (0.80) (0.61) (0.59) (0.52) (0.51) (0.74) (0.54) (0.21)
-------- ------- -------- -------- --------- -------- -------- -------- ---------
$ 11.08 $ 9.64 $ 11.33 $ 10.65 $ 10.25 $11.08 $ 9.64 $11.33 $ 10.65
======= ======= ======= ======= ======= ====== ======= ====== =======
21.31% (8.34)% 12.37% 9.88%+++ 7.87%+++ 20.65% (8.86)% 11.69% 3.63%+++
======= ======= ======= ======= ======= ====== ======= ====== =======
$27,963 $23,754 $28,415 $21,056 $ 7,234 $2,268 $3,064 $6,331 $ 3,744
0.80% 0.79% 0.60% 0.52% 0.20%+ 1.35% 1.36% 1.27% 1.21%+
-- (a) 0.80% -- -- -- --(a) 1.37% -- --
5.43% 5.24% 5.09% 5.42% 6.07%+ 4.88% 4.67% 4.49% 4.36%+
49% 63% 48% 19% 54% 49% 63% 48% 19%
1.08% 1.08% 0.99% 0.99% 0.88%+ 1.63% 1.65% 1.59% 1.61%+
$ 0.54 $ 0.52 $ 0.53 $ 0.53 $ 0.45 $ 0.48 $ 0.46 $ 0.46 $ 0.19
<CAPTION>
INVESTOR N SHARES
---------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
11/30/95 11/30/94 11/30/93*
---------------------------------------
<S> <C> <C>
$ 9.64 $ 11.33 $ 11.13
-------- -------- ---------
0.51 0.49 0.23
1.44 (1.44) 0.20
-------- -------- ---------
1.95 (0.95) 0.43
(0.51) (0.49) (0.23)
-- (0.00)# --
-- (0.25) --
-------- -------- ---------
(0.51) (0.74) (0.23)
-------- -------- ---------
$ 11.08 $ 9.64 $ 11.33
======= ======= =======
20.65% (8.86)% 3.89%
======= ======= =======
$18,165 $17,101 $15,133
1.35% 1.36% 1.27%+
--(a) 1.37% --
4.88% 4.67% 4.49%+
49% 63% 48%
1.63% 1.65% 1.59%+
$ 0.48 $ 0.46 $ 0.22
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
181
<PAGE> 355
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company. As of the date of this report, the Trust offers thirty-one separate
portfolios. Information presented in these financial statements pertains only to
the following funds: Nations Florida Intermediate Municipal Bond Fund, Nations
Florida Municipal Bond Fund, Nations Georgia Intermediate Municipal Bond Fund,
Nations Georgia Municipal Bond Fund, Nations Maryland Intermediate Municipal
Bond Fund, Nations Maryland Municipal Bond Fund, Nations North Carolina
Intermediate Municipal Bond Fund, Nations North Carolina Municipal Bond Fund,
Nations South Carolina Intermediate Municipal Bond Fund, Nations South Carolina
Municipal Bond Fund, Nations Tennessee Intermediate Municipal Bond Fund, Nations
Tennessee Municipal Bond Fund, Nations Texas Intermediate Municipal Bond Fund,
Nations Texas Municipal Bond Fund, Nations Virginia Intermediate Municipal Bond
Fund, Nations Virginia Municipal Bond Fund, Nations Short-Term Municipal Income
Fund, Nations Intermediate Municipal Bond Fund and Nations Municipal Income Fund
(collectively the "Funds"). The financial statements for the remaining Funds are
presented under separate covers. The Funds currently offer four classes of
shares: Trust A Shares, Investor A Shares, Investor C Shares and Investor N
Shares. The Board of Trustees has authorized the issuance of Trust B Shares for
all Funds. As of November 30, 1995, no Trust B Shares have been issued.
Shareholders of a Fund have equal voting rights on matters affecting all
shareholders of the Fund equally. 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 following is a summary of
significant accounting policies followed by the Funds in the preparation of
their financial statements.
Securities Valuations: Investments in municipal bonds are valued by an
independent pricing service approved by the Board of Trustees. Valuations are
based upon a matrix system and/or appraisals provided by the pricing service
which takes into consideration such factors as yields, prices, maturities, sell
features and ratings on comparable securities. Certain securities may be valued
by one or more principal market makers. Restricted securities, securities for
which market quotations are not readily available, and other assets are valued
at fair value under the supervision of the Board of Trustees. Short-term
investments that mature in 60 days or less are valued at amortized cost.
Certain states' municipal obligations may be obligations of issuers which rely
in whole or in part on state specific revenues, real property taxes and revenues
from health care institutions, as appropriate, or obligations secured by
mortgages on real property. Consequently, the possible effect of economic
conditions in these states or their laws on these obligations must be
considered.
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 and
amortization of original issue discounts on the effective yield method, is
earned from 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 the classes based
upon the relative net assets of each class.
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 in
a separate account with a current value at least equal to the amount of its
when-issued purchase commitments.
Dividends and Distributions to Shareholders: It is the policy of each Fund to
declare dividends daily from net investment income and pay such dividends
monthly. Each Fund will distribute net realized capital gains, if any, annually.
Additional distributions of net investment income and capital gains may be made
at the discretion of the Board of Trustees 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 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.
182
<PAGE> 356
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Reclassifications are made to each Fund's capital accounts to reflect income and
gains available for distribution (or available capital loss carryforwards) under
Federal income tax regulations.
Reclassifications for the year ended November 30, 1995, were as follows:
<TABLE>
<CAPTION>
INCREASE DECREASE
INCREASE/(DECREASE) UNDISTRIBUTED NET ACCUMULATED
PAID-IN CAPITAL INVESTMENT INCOME REALIZED GAIN/(LOSS)
---------------------------------------------------------
<S> <C> <C> <C>
Florida Municipal Bond Fund.................... -- $ 6,617 $ (6,617)
Maryland Intermediate Municipal Bond Fund...... $(9,588) 9,588 --
Maryland Municipal Bond Fund................... -- 2,074 (2,074)
North Carolina Municipal Bond Fund............. -- 1,224 (1,224)
North Carolina Intermediate Municipal Bond
Fund......................................... -- 4,477 (4,477)
South Carolina Intermediate Municipal Bond
Fund......................................... -- 7,752 (7,752)
Tennessee Municipal Bond Fund.................. (695) 3,145 (2,450)
Texas Municipal Bond Fund...................... (1,107) 5,976 (4,869)
Virginia Intermediate Municipal Bond Fund...... -- 2,807 (2,807)
Intermediate Municipal Bond Fund............... -- 11,258 (11,258)
Municipal Income Fund.......................... -- 18,382 (18,382)
</TABLE>
Federal Income Taxes: 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 are allocated to the Funds based upon
relative net assets. Operating expenses directly attributable to a Fund or class
of shares are charged to that Fund's or class' 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.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS.
The Trust has entered into an Investment Advisory Agreement with NationsBank,
N.A. (together with its predecessors "NationsBank"), as successor to NationsBank
of North Carolina, N.A., an indirect wholly-owned subsidiary of NationsBank
Corporation, with respect to the Funds.
Under the terms of this Investment Advisory Agreement, NationsBank is entitled
to receive an advisory fee at the following annual rates of average daily net
assets:
<TABLE>
<CAPTION>
ANNUAL RATE
----------
<S> <C>
Florida Intermediate Municipal Bond Fund, Georgia 0.50%
Intermediate Municipal Bond Fund, Maryland Intermediate
Municipal Bond Fund, North Carolina Intermediate
Municipal Bond Fund, South Carolina Intermediate
Municipal Bond Fund, Tennessee Intermediate Municipal
Bond Fund, Texas Intermediate Municipal Bond Fund,
Virginia Intermediate Municipal Bond Fund, Short-Term
Municipal Income Fund and Intermediate Municipal Bond
Fund
Florida Municipal Bond Fund, Georgia Municipal Bond Fund, 0.60%
Maryland Municipal Bond Fund, North Carolina Municipal
Bond Fund, South Carolina Municipal Bond Fund,
Tennessee Municipal Bond Fund, Texas Municipal Bond Fund,
Virginia Municipal Bond Fund and Municipal Income Fund
</TABLE>
Stephens Inc. ("Stephens") serves as the Trust's administrator pursuant to an
Administration Agreement. First Data Investor Services Group, Inc., formerly The
Shareholder Services Group, Inc., a wholly-owned subsidiary of First Data
Corporation, serves as the Trust's co-administrator pursuant to a
Co-Administration Agreement. Pursuant to the
183
<PAGE> 357
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 average daily net assets of the Trust
and the investment portfolios of Nations Fund, Inc. and Nations Fund Portfolios,
Inc. (other registered open-end investment companies that are part of the
Nations Fund Family) on a combined basis.
For the year ended November 30, 1995, Stephens earned $390,789 (after fee
waivers) from the Funds for its services.
The investment adviser, administrator, co-administrator and custodian may, from
time to time, reduce their fees payable by each Fund (either voluntarily or
pursuant to applicable state limitations). For the year ended November 30, 1995,
the investment adviser, administrator and/or custodian voluntarily waived fees
as follows:
<TABLE>
<CAPTION>
FEES WAIVED BY:
ADVISER ADMINISTRATOR CUSTODIAN
----------------------------------------------
<S> <C> <C> <C>
Florida Intermediate Municipal Bond Fund...................... $ 113,704 $ 12,708 --
Florida Municipal Bond Fund................................... 168,010 9,126 $ 8,105
Georgia Intermediate Municipal Bond Fund...................... 126,861 14,573 --
Georgia Municipal Bond Fund................................... 75,891 3,408 5,549
Maryland Intermediate Municipal Bond Fund..................... 191,375 22,366 --
Maryland Municipal Bond Fund.................................. 71,347 2,815 6,158
North Carolina Intermediate Municipal Bond Fund............... 86,937 9,257 --
North Carolina Municipal Bond Fund............................ 157,625 7,614 7,757
South Carolina Intermediate Municipal Bond Fund............... 143,374 2,931 --
South Carolina Municipal Bond Fund............................ 77,066 3,573 5,736
Tennessee Intermediate Municipal Bond Fund.................... 54,285 4,383 --
Tennessee Municipal Bond Fund................................. 53,062 1,812 3,840
Texas Intermediate Municipal Bond Fund........................ 67,309 7,337 --
Texas Municipal Bond Fund..................................... 91,303 4,168 5,742
Virginia Intermediate Municipal Bond Fund..................... 439,488 10,264 --
Virginia Municipal Bond Fund.................................. 101,277 4,700 6,322
Short-Term Municipal Income Fund.............................. 255,162 17,261 12,607
Intermediate Municipal Bond Fund.............................. 241,595 18,605 --
Municipal Income Fund......................................... 269,813 28,128 --
</TABLE>
No officer, director or employee of NationsBank, Stephens or First Data Investor
Services Group, Inc., or any affiliate thereof, receives any compensation from
the Trust for serving as a trustee or officer of the Trust. The Trust pays each
Trustee 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 also reimburses
expenses incurred by the Trustees in attending such meetings.
Each Fund's eligible Trustees may participate in a nonqualified deferred
compensation 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 the Nations Treasury Fund, a fund of Nations Fund, Inc.
The expense for the deferred compensation plan is included in the "Trustees'
fees and expenses" line of the Statements of Operations.
NationsBank of Texas, N.A. acts as custodian for the Funds and for the year
ended November 30, 1995, earned $136,123 (after waivers) for providing such
services. First Data Investor Services Group, Inc. serves as transfer agent for
the Funds' shares. NationsBank of Texas, N.A. acts as the sub-transfer agent for
the Trust A Shares of the Funds and for the year ended November 30, 1995, earned
approximately $111,000 for providing such services.
Stephens acts as distributor of the Funds' shares. For the year ended November
30, 1995, the Funds were informed that the distributor received $128,446,
representing commissions (sales charges) on sales of Investor A Shares of the
Funds. For the year ended November 30, 1995, the Funds were informed that the
distributor received $635,019 in contingent deferred sales charges from Investor
C and Investor N Shares of the Funds. A substantial portion of these fees are
paid to affiliates of NationsBank.
184
<PAGE> 358
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust has adopted a shareholder servicing and distribution plan ("Investor A
Plan") pursuant to Rule 12b-1 under the 1940 Act for the Investor A Shares of
the Funds. Pursuant to the Investor A Plan, the Funds pay fees directly to the
distributor. Payments by a Fund under the Investor A Plan may not exceed 0.25%,
on an annualized basis, of the average daily net assets of the Fund's Investor A
Shares. Fees paid pursuant to the Investor A Plan are charged as expenses of
Investor A Shares of a Fund as accrued.
The Trust also has adopted a shareholder servicing plan ("Investor A Servicing
Plan") for the Investor A Shares of the Short-Term Municipal Income Fund. Under
the Investor A Servicing Plan, the Short-Term Municipal Income Fund may pay for
shareholder services provided by institutions to shareholders of Investor A
Shares of the Fund. Payments by the Short-Term Municipal Income Fund under the
Investor A Servicing Plan may not exceed 0.25%, on an annualized basis, of the
average daily net assets of Investor A Shares of the Fund.
The Trust also has adopted distribution plans pursuant to Rule 12b-1 under the
1940 Act with respect to Investor C ("Investor C Plan") and Investor N
("Investor N Plan") Shares of each Fund. Pursuant to the Plans, the Funds pay
fees directly to the distributor. Payments under the Investor C Plan and the
Investor N Plan are accrued daily and paid monthly at a rate that will not
exceed 0.75%, on an annualized basis, of the average daily net assets of the
Investor C or Investor N Shares, respectively, of a Fund. Fees paid pursuant the
Investor C Plan and the Investor N Plan are charged as expenses of Investor C or
Investor N Shares, respectively, of a Fund as accrued.
The Trust also has adopted shareholder servicing plans with respect to Investor
C ("Investor C Servicing Plan") and Investor N ("Investor N Servicing Plan")
Shares of the Funds. Pursuant to the Investor C Servicing Plan and the Investor
N Servicing Plan, each Fund pays for certain shareholder support services that
are provided to the owners of Investor C or Investor N Shares by the servicing
agents that have entered into a shareholder servicing agreement with the Trust.
Payments under the Investor C Servicing Plan and the Investor N Servicing Plan
are accrued daily and paid monthly at a rate that will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the Investor C or Investor
N Shares, respectively, of a Fund. Fees paid pursuant to the Investor C
Servicing Plan and the Investor N Servicing Plan are charged as expenses of
Investor C or Investor N Shares, respectively, of a Fund as accrued.
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank.
For the year ended November 30, 1995, the Funds incurred the following amounts
pursuant to the above plans:
<TABLE>
<CAPTION>
FEES PAID PURSUANT TO:
INVESTOR A INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
PLAN SERVICING PLAN PLAN SERVICING PLAN PLAN SERVICING PLAN
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Florida Intermediate Municipal
Bond Fund............................. $ 4,198 N/A $ 1,436 $ -- $ 11,742 $ 11,742
Florida Municipal Bond Fund............. 3,021 N/A 182 -- 116,436 58,218
Georgia Intermediate Municipal Bond
Fund.................................. 20,573 N/A 12,823 -- 19,405 19,405
Georgia Municipal Bond Fund............. 13 N/A 270 -- 56,452 28,226
Maryland Intermediate Municipal Bond
Fund.................................. 42,880 N/A 13,177 -- 11,051 11,051
Maryland Municipal Bond Fund............ 1,205 N/A 17 -- 34,885 17,443
North Carolina Intermediate Municipal
Bond Fund............................. 17,214 N/A 7,248 -- 17,417 17,417
North Carolina Municipal Bond Fund...... 1,530 N/A 103 -- 138,637 69,318
South Carolina Intermediate Municipal
Bond Fund............................. 31,815 N/A 28,757 -- 15,338 15,338
South Carolina Municipal Bond Fund...... 850 N/A 27 -- 53,754 26,877
Tennessee Intermediate Municipal Bond
Fund.................................. 15,683 N/A 11 -- 8,739 8,739
Tennessee Municipal Bond Fund........... 216 N/A 364 -- 30,817 15,409
Texas Intermediate Municipal Bond
Fund.................................. 1,638 N/A 2,216 -- 7,846 7,846
Texas Municipal Bond Fund............... 311 N/A 29 -- 59,643 29,821
Virginia Intermediate Municipal Bond
Fund.................................. 151,365 N/A 38,399 -- 27,642 27,642
Virginia Municipal Bond Fund............ 810 N/A 61 -- 74,437 37,218
Short-Term Municipal Income Fund........ -- $ 4,237 2,660 -- 10,711 26,777
Intermediate Municipal Bond Fund........ 1,714 N/A 662 -- 2,934 2,934
Municipal Income Fund................... 51,257 N/A 19,872 -- 91,220 45,610
</TABLE>
185
<PAGE> 359
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the year ended November 30, 1995, the effective rates paid by the Funds, as
a percentage of average daily net assets under the shareholder servicing and
distribution plans were as follows:
<TABLE>
<CAPTION>
INVESTOR A INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
PLAN SERVICING PLAN PLAN SERVICING PLAN PLAN SERVICING PLAN
----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Florida Intermediate Municipal Bond
Fund.................................. 0.20% N/A 0.50% 0.00% 0.25% 0.25%
Florida Municipal Bond Fund............. 0.20 N/A 0.75 0.00 0.50 0.25
Georgia Intermediate Municipal Bond
Fund.................................. 0.20 N/A 0.50 0.00 0.25 0.25
Georgia Municipal Bond Fund............. 0.20 N/A 0.75 0.00 0.50 0.25
Maryland Intermediate Municipal Bond
Fund.................................. 0.20 N/A 0.50 0.00 0.25 0.25
Maryland Municipal Bond Fund............ 0.20 N/A 0.75 0.00 0.50 0.25
North Carolina Intermediate Municipal
Bond Fund............................. 0.20 N/A 0.50 0.00 0.25 0.25
North Carolina Municipal Bond Fund...... 0.20 N/A 0.75 0.00 0.50 0.25
South Carolina Intermediate Municipal
Bond Fund............................. 0.20 N/A 0.50 0.00 0.25 0.25
South Carolina Municipal Bond Fund...... 0.20 N/A 0.75 0.00 0.50 0.25
Tennessee Intermediate Municipal Bond
Fund.................................. 0.20 N/A 0.50 0.00 0.25 0.25
Tennessee Municipal Bond Fund........... 0.20 N/A 0.75 0.00 0.50 0.25
Texas Intermediate Municipal Bond
Fund.................................. 0.20 N/A 0.50 0.00 0.25 0.25
Texas Municipal Bond Fund............... 0.20 N/A 0.75 0.00 0.50 0.25
Virginia Intermediate Municipal Bond
Fund.................................. 0.20 N/A 0.50 0.00 0.25 0.25
Virginia Municipal Bond Fund............ 0.20 N/A 0.75 0.00 0.50 0.25
Short-Term Municipal Income Fund........ 0.00 0.20% 0.25 0.00 0.10 0.25
Intermediate Municipal Bond Fund........ 0.20 N/A 0.50 0.00 0.25 0.25
Municipal Income Fund................... 0.20 N/A 0.75 0.00 0.50 0.25
</TABLE>
4. PURCHASES AND SALES OF SECURITIES.
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the year ended November 30, 1995, was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------------------------
<S> <C> <C>
Florida Intermediate Municipal Bond Fund....................................................... $13,181,154 $17,834,108
Florida Municipal Bond Fund.................................................................... 12,892,370 4,275,229
Georgia Intermediate Municipal Bond Fund....................................................... 12,807,438 9,516,107
Georgia Municipal Bond Fund.................................................................... 7,040,329 3,018,475
Maryland Intermediate Municipal Bond Fund...................................................... 9,121,965 17,131,720
Maryland Municipal Bond Fund................................................................... 7,915,289 932,923
North Carolina Intermediate Municipal Bond Fund................................................ 25,843,181 20,137,369
North Carolina Municipal Bond Fund............................................................. 13,811,888 11,412,705
South Carolina Intermediate Municipal Bond Fund................................................ 8,199,911 21,115,207
South Carolina Municipal Bond Fund............................................................. 6,882,945 1,557,357
Tennessee Intermediate Municipal Bond Fund..................................................... 7,268,473 5,552,505
Tennessee Municipal Bond Fund.................................................................. 3,645,724 2,950,049
Texas Intermediate Municipal Bond Fund......................................................... 18,517,179 17,852,700
Texas Municipal Bond Fund...................................................................... 9,638,243 7,392,260
Virginia Intermediate Municipal Bond Fund...................................................... 55,193,405 92,223,415
Virginia Municipal Bond Fund................................................................... 7,381,520 2,635,303
Short-Term Municipal Income Fund............................................................... 63,839,601 46,659,713
Intermediate Municipal Bond Fund............................................................... 49,736,624 20,804,985
Municipal Income Fund.......................................................................... 52,613,097 52,063,083
</TABLE>
186
<PAGE> 360
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At November 30, 1995, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes was as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------------------------
<S> <C> <C>
Florida Intermediate Municipal Bond Fund................................................... $ 2,318,151 --
Florida Municipal Bond Fund................................................................ 1,840,338 $ 99,484
Georgia Intermediate Municipal Bond Fund................................................... 2,708,621 18,221
Georgia Municipal Bond Fund................................................................ 565,002 43,857
Maryland Intermediate Municipal Bond Fund.................................................. 3,598,723 74,911
Maryland Municipal Bond Fund............................................................... 544,776 47,344
North Carolina Intermediate Municipal Bond Fund............................................ 1,687,659 9,770
North Carolina Municipal Bond Fund......................................................... 1,315,323 121,079
South Carolina Intermediate Municipal Bond Fund............................................ 2,799,897 99,394
South Carolina Municipal Bond Fund......................................................... 603,542 31,447
Tennessee Intermediate Municipal Bond Fund................................................. 586,852 --
Tennessee Municipal Bond Fund.............................................................. 367,030 725
Texas Intermediate Municipal Bond Fund..................................................... 990,543 808
Texas Municipal Bond Fund.................................................................. 1,010,590 14,150
Virginia Intermediate Municipal Bond Fund.................................................. 12,498,603 127,372
Virginia Municipal Bond Fund............................................................... 824,135 50,042
Short-Term Municipal Income Fund........................................................... 1,192,792 5,587
Intermediate Municipal Bond Fund........................................................... 3,378,396 20,641
Municipal Income Fund...................................................................... 8,239,608 33,837
</TABLE>
5. SHARES OF BENEFICIAL INTEREST.
As of November 30, 1995, an unlimited number of shares without par value were
authorized for the Trust. 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.
6. ORGANIZATION COSTS.
The Funds bear all costs in connection with their organization, including the
fees and expenses of registering and qualifying their shares for distribution
under Federal and state securities regulations. All such costs are being
amortized on the straight-line method over a period of five years from
commencement of operations. In the event that any of the shares issued by the
Funds to their sponsor prior to the commencement of the Funds' public offering
("initial shares") are redeemed during such amortization period by any holder
thereof, the Funds will be reimbursed by the holder for any unamortized
organization costs in the same proportion as the number of initial shares
redeemed bears to the number of initial shares outstanding at the time of
redemption.
As of November 30, 1995, all organizational costs were fully amortized for
Nations Maryland Intermediate Municipal Bond Fund, Nations Virginia Intermediate
Municipal Bond Fund and Nations Municipal Income Fund.
7. LINE OF CREDIT.
The Trust and Nations Fund, Inc. participate in a $25 million line of credit
provided by Mellon Bank, N.A. (the "Bank") under a Line of Credit Agreement (the
"Agreement") dated March 17, 1994. Advances under the Agreement are taken
primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Under this Agreement, each Fund may borrow up to the lesser of $10
million or 5% of its net assets. Interest on borrowings is payable either at the
higher of the Bank's Money Market Rate or the London Interbank Offered Rate
(LIBOR) plus 0.25% on an annualized basis. The Funds and the other affiliated
entities are charged an aggregate commitment fee of 0.25% per annum on the
amount of the line of credit. Each Fund is liable only for that portion of the
commitment with respect to such Fund and shall not be liable for the portion of
the commitment fee of any other fund. The Agreement requires, among other
things, that each participating Fund maintain a ratio of net assets (not
including funds borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement of no less than 4 to 1.
187
<PAGE> 361
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At November 30, 1995, there were no loans outstanding under this Agreement.
During the year ended November 30, 1995, the following Funds had borrowings
under the Agreement:
<TABLE>
<CAPTION>
AVERAGE
MAXIMUM AVERAGE DEBT INTEREST
AMOUNT AMOUNT AVERAGE PER RATE INTEREST
FUND OUTSTANDING OUTSTANDING SHARES SHARE HIGH LOW EXPENSE
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Florida Intermediate Municipal Bond Fund............. $ 700,000 $30,959 4,885,506 $0.0063 6.38% 5.65% $1,931
Florida Municipal Bond Fund.......................... 400,000 2,192 3,573,142 0.0006 5.90 5.70 129
Georgia Intermediate Municipal Bond Fund............. 800,000 23,014 5,456,716 0.0042 6.38 6.00 1,507
Georgia Municipal Bond Fund.......................... 300,000 3,836 1,331,538 0.0029 6.32 5.70 239
Maryland Intermediate Municipal Bond Fund............ 2,400,000 44,932 8,265,978 0.0054 6.49 5.70 2,765
North Carolina Intermediate Municipal Bond Fund...... 4,300,000 19,726 3,539,733 0.0056 6.33 5.90 1,300
North Carolina Municipal Bond Fund................... 600,000 4,932 3,195,528 0.0015 6.44 5.85 380
South Carolina Intermediate Municipal Bond Fund...... 3,400,000 97,534 7,200,999 0.0135 6.38 5.65 5,814
South Carolina Municipal Bond Fund................... 400,000 3,288 1,321,187 0.0025 6.19 5.94 202
Tennessee Intermediate Municipal Bond Fund........... 100,000 1,370 1,702,952 0.0008 6.32 6.25 87
Tennessee Municipal Bond Fund........................ 200,000 3,562 712,772 0.0050 6.25 5.70 216
Texas Intermediate Municipal Bond Fund............... 500,000 13,699 2,854,051 0.0048 6.32 5.65 843
Texas Municipal Bond Fund............................ 200,000 4,384 1,673,531 0.0026 6.25 5.94 266
Virginia Intermediate Municipal Bond Fund............ 1,800,000 76,712 24,217,328 0.0032 6.55 5.65 4,734
Virginia Municipal Bond Fund......................... 100,000 1,644 1,911,607 0.0009 6.35 6.07 137
Short-Term Municipal Income Fund..................... 1,000,000 35,342 5,910,846 0.0060 6.37 5.80 2,252
Intermediate Municipal Bond Fund..................... 900,000 17,260 6,857,280 0.0025 6.44 5.75 1,033
Municipal Income Fund................................ 900,000 35,616 10,337,647 0.0034 6.44 5.70 2,301
</TABLE>
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the year ended
November 30, 1995.
8. CAPITAL LOSS CARRYFORWARD.
At November 30 1995, the following Funds had available for Federal income tax
purposes the following unused capital losses:
<TABLE>
<CAPTION>
LOSSES LOSSES
DEFERRED DEFERRED
EXPIRING EXPIRING
FUND IN 2002 IN 2003
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Florida Intermediate Municipal Bond Fund............................................................ $ 374,901 $ 752,907
Florida Municipal Bond Fund......................................................................... 531,197 354,485
Georgia Intermediate Municipal Bond Fund............................................................ 57,603 321,604
Georgia Municipal Bond Fund......................................................................... 181,039 222,938
Maryland Intermediate Municipal Bond Fund........................................................... -- 1,047,530
Maryland Municipal Bond Fund........................................................................ 31,592 4,504
North Carolina Intermediate Municipal Bond Fund..................................................... -- 330,912
North Carolina Municipal Bond Fund.................................................................. 358,960 425,261
South Carolina Intermediate Municipal Bond Fund..................................................... 44,516 395,705
South Carolina Municipal Bond Fund.................................................................. 24,955 47,052
Tennessee Intermediate Municipal Bond Fund.......................................................... 254,343 53,285
Tennessee Municipal Bond Fund....................................................................... 46,910 174,808
Texas Intermediate Municipal Bond Fund.............................................................. 595,573 474,023
Texas Municipal Bond Fund........................................................................... 682,573 131,901
Virginia Intermediate Municipal Bond Fund........................................................... -- 2,072,659
Virginia Municipal Bond Fund........................................................................ 514,704 77,074
Short-Term Municipal Income Fund.................................................................... 353,743 373,533
Intermediate Municipal Bond Fund.................................................................... 133,155 273,438
Municipal Income Fund............................................................................... 2,200,825 2,394,822
</TABLE>
188
<PAGE> 362
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
9. REORGANIZATION.
On March 31, 1994, the Maryland Intermediate Municipal Bond Fund (Acquiring
Fund) acquired the assets and certain liabilities of The Capitol Mutual Funds
Maryland Tax Free Securities Portfolio (Acquired Fund), in exchange for shares
of the Acquiring Fund, pursuant to a plan of tax-free reorganization approved by
the Acquired Fund's shareholders on March 31, 1994. 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
depreciation included in the Acquired Fund's total net assets at the acquisition
date were as follows:
<TABLE>
<CAPTION>
VALUE OF
SHARES SHARES TOTAL NET TOTAL NET ACQUIRED
ISSUED BY ISSUED BY ASSETS OF ASSETS OF FUND
ACQUIRING ACQUIRING ACQUIRED ACQUIRING UNREALIZED
ACQUIRING FUND ACQUIRED FUND FUND FUND FUND* FUND DEPRECIATION
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Maryland Intermediate The Capitol Mutual
Municipal Bond Fund Funds
Maryland Tax Free
Securities Portfolio 830,468 $8,753,129 $8,753,129 $82,822,501 $109,366
</TABLE>
- ---------------
* The value of the net assets of the Acquiring Fund immediately after the
acquisition was $91,575,630.
10. SUBSEQUENT EVENT.
Effective January 1, 1996, NationsBanc Advisors, Inc. will become the investment
advisor to the Trust. Also effective January 1, 1996, TradeStreet Investment
Associates, Inc. will become the sub-advisor to the Trust. Both NationsBanc
Advisors, Inc. and TradeStreet Investment Associates Inc. are indirect
wholly-owned subsidiaries of NationsBank. There will be no change in advisory
fees paid by the Trust.
189
<PAGE> 363
NATIONS FUND TRUST
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUND TRUST
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of the nineteen Tax-Exempt Income Funds that constitute part of Nations
Fund Trust (the "Trust") at November 30, 1995, and the results of each of their
operations, the changes in each of their net assets and the financial highlights
for the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
January 19, 1996
190
<PAGE> 364
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 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
<PAGE> 365
This report is submitted for the general information of shareholders of Nations
Fund Trust. This material must be preceded or accompanied by a Nations Fund
prospectus.
