<PAGE> 1
Nations
Fund
Money
Market
Funds
ANNUAL REPORT FOR THE YEAR ENDED MARCH 31, 1996
[Nations Fund Logo]
<PAGE> 2
<TABLE>
<S> <C>
NOT MAY LOSE VALUE
FDIC-
INSURED NO BANK GUARANTEE
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, N.A., IS NOT A BANK AND SECURITIES OFFERED BY IT ARE NOT
GUARANTEED BY ANY BANK OR INSURED BY THE FDIC. STEPHENS INC., MEMBER NYSE-SIPC.
NATIONS FUND INVESTMENT ADVISER: NATIONSBANC ADVISORS, INC.
NATIONS FUND INVESTMENT SUB-ADVISER: TRADESTREET INVESTMENT ASSOCIATES, INC.
<PAGE> 3
NATIONS FUND
DEAR SHAREHOLDER:
We are pleased to present the Nations Fund annual report for the fiscal period
ended March 31, 1996.* Overall, markets have rewarded investors, and during this
period, assets of the Nations Fund family of mutual funds surpassed the $18
billion level.
As noted in our letter to you dated November 30, 1995, last year marked a period
that many investors will look back upon with great fondness in the years to
come. Four factors coincided to make 1995 a memorable year for the stock and
bond markets: 1) The U.S. economy grew at a moderate pace; 2) Inflation slowed
more than most observers anticipated; 3) Both the executive and legislative
branches of the U.S. government embraced a commitment to reduce the federal
deficit; and 4) U.S. corporations continued to produce strong profitability. As
a result, those who owned financial assets enjoyed strong performance without
having it eroded or undermined by threats of an overheated economy, creeping
inflation or unbridled federal spending.
The first three months of 1996 demonstrated that ideal investment conditions do
not last indefinitely. While inflation remained subdued, the economy lost some
of its balance. In January, the economy softened under the weight of winter
storms and a partial Federal government shut down. By late February, the economy
had reawakened with surprising strength, particularly on the employment front.
However, the strong earnings gains of 1995 showed clear signs of abating.
Meanwhile, the political season opened, complicating budget negotiations and
creating harsh political rhetoric. Under these conditions, bond prices began to
fall and interest rates began to rise. While stocks posted gains in the first
months of 1996, the gains were narrower (fewer stocks participated) and
volatility increased. The early primary season put a great deal of focus on the
flat tax, and voter support for the concept appeared to erode. As a result,
municipal securities, which underperformed U.S. Treasuries last year, closed the
performance gap.
Looking ahead, the cooling and heating of the economy that we have experienced
early in the year should give way to modest growth. We do not think there will
be a boom or a bust in the foreseeable future. Inflation should not be a
significant factor, as global markets and sluggishness in the industrialized
world should keep prices and wages under control. Corporate profits will,
however, be a precious commodity. Although we expect corporate profits to
advance, they should be far less spectacular than in 1995. Clearly, the races
for President and Congress will stir up the markets from time to time. Fiscal
conservatism, which has helped to propel the markets, will get lost at times as
the candidates battle.
In summary, we believe investors will enjoy a reasonable, rather than ideal,
environment for investing. We believe that stocks and bonds will advance.
However, the advances will probably be accompanied by periodic corrections and
volatility as the market continues to adjust to a less-than-perfect investment
world.
Sincerely,
/s/ A. Max Walker /s/ Mark H. Williamson
A. Max Walker Mark H. Williamson
President and Chairman President, NationsBanc
of the Board Advisors, Inc.
March 31, 1996
* THE FISCAL YEAR END CHANGED TO MARCH 31.
1
<PAGE> 4
THE NATIONS FUND ADVANTAGE
A family of mutual funds provides investors with a number of advantages,
including the ability to shift investment assets among funds as their financial
objectives 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 NationsBanc Advisors, Inc. The
family was designed to accommodate a wide variety of investment objectives
across the risk/reward spectrum.
NATIONS FUND FAMILY GRAPH
POTENTIAL RETURN
<TABLE>
<CAPTION>
POTENTIAL RISK (VARIABILITY)
---------------------------------------------------------------------------
CURRENT INCOME GROWTH AND INCOME GROWTH AGGRESSIVE GROWTH
--------------------------------- -------------------------- -------------------------- ----------------------------
STABILITY
- ----------------
Shorter Intermediate Longer Growth Large Small Region
Money Maturity Maturity Maturity Equity And Capitalization International Capitalization Specific
Market Bond Bond Bond Balanced Income Income Growth Equity Growth International
Funds Funds Funds Funds Funds Funds Funds Funds* Funds Funds Funds
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -Nations -Nations -Nations -Nations -Nations -Nations -Nations -Nations -Nations -Nations -Nations
Prime Short- Stragegic Government Balanced Equity Value Capital International Emerging Emerging
Fund Term Fixed Securities Assets Income Fund Growth Equity Fund Growth Markets
- -Nations Income Income Fund Fund Fund Fund Fund Fund
Govern- Fund Fund -Nations -Nations -Nations
ment -Nations -Nations Diversified Disciplined Pacific
Money Short- Inter- Income Equity Growth
Market Term mediate Fund Fund Fund
Fund Municipal Term -Nations
- -Nations Income Municipal Long-Term
Treasury Fund Bond Municipal
Fund -Nations Funds Bond
- -Nations Short- Funds
Tax- Intermediate -Nations
Exempt Government Global
Fund Fund Government
Income Fund
</TABLE>
For specific information on developing an investment portfolio that will more
closely target your investment objectives, contact your investment
representative or Nations Fund for fund brochures and prospectuses at (800)
982-2271.
- ---------------
* The Nations Fund family also includes Nations Equity Index Fund, which seeks
to match the performance of the S&P 500 before fees and expenses.
2
<PAGE> 5
NATIONS FUND
Nations Prime Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
BANK OBLIGATIONS -- 5.2%
CERTIFICATE OF DEPOSIT -- DOMESTIC -- 1.2%
$ 50,000,000 Bank of New York,
(Delaware),
5.650%+............. 04/25/96 $ 50,000,000
--------------
CERTIFICATES OF DEPOSIT -- EURO -- 1.4%
30,000,000 Bayerische Hypotheken,
5.350%.............. 07/08/96 29,999,747
27,000,000 Morgan Guaranty Trust
Company,
4.920%.............. 02/12/97 26,957,676
--------------
56,957,423
--------------
CERTIFICATES OF DEPOSIT -- YANKEE -- 2.6%
Bayerische Vereinsbank
AG, (New York):
50,000,000 5.320%.............. 02/24/97 50,000,000
30,000,000 5.300%.............. 03/04/97 30,000,000
25,000,000 Sanwa Bank Ltd. of New
York,
5.540%.............. 04/15/96 25,000,097
--------------
105,000,097
--------------
TOTAL BANK OBLIGATIONS
(Cost $211,957,520)........... 211,957,520
==============
CORPORATE OBLIGATIONS -- 70.9%
COMMERCIAL PAPER -- 49.2%
Aetna Life and
Casualty Company:
25,000,000 Discount note....... 04/04/96 24,988,333
25,000,000 Discount note....... 04/26/96 24,907,118
25,000,000 Discount note....... 04/26/96 24,905,903
20,000,000 Discount note....... 05/09/96 19,887,056
American Express
Credit Corporation:
50,000,000 Discount note....... 06/05/96 49,517,014
15,000,000 Discount note....... 06/07/96 14,852,879
25,000,000 Discount note....... 07/03/96 24,677,083
25,000,000 Discount note....... 07/12/96 24,650,084
25,000,000 Discount note....... 08/12/96 24,549,278
10,000,000 American Home Food
Products Inc.,
Discount note(a).... 04/08/96 9,989,597
50,000,000 Ameritech Corporation,
Discount note....... 04/15/96 49,892,278
Barnett Banks, Inc.:
16,000,000 Discount note....... 04/01/96 16,000,000
50,000,000 Discount note....... 04/02/96 49,992,528
25,000,000 Bear Stearns &
Company, Inc.,
Discount note....... 06/21/96 24,721,563
25,000,000 Britannia Building
Society,
Discount note....... 08/08/96 24,555,667
20,000,000 Chrysler Financial
Corporation,
Discount note....... 06/19/96 19,766,072
Countrywide Funding
Corporation:
30,000,000 Discount note....... 04/24/96 29,896,500
25,000,000 Discount note....... 06/19/96 24,707,590
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
CORPORATE OBLIGATIONS -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
Finova Capital
Corporation:
$ 5,000,000 Discount note....... 04/01/96 $ 5,000,000
20,000,000 Discount note....... 04/08/96 19,978,144
30,000,000 Discount note....... 04/08/96 29,968,383
28,500,000 Discount note....... 04/11/96 28,457,567
30,000,000 Discount note....... 04/16/96 29,932,500
10,000,000 Discount note....... 04/25/96 9,964,867
30,000,000 Discount note....... 05/22/96 29,770,500
20,000,000 Discount note....... 05/23/96 19,842,556
20,000,000 Discount note....... 06/27/96 19,740,933
13,000,000 Discount note....... 06/28/96 12,828,400
General Motors
Acceptance
Corporation:
25,000,000 Discount note....... 06/12/96 24,747,500
25,000,000 Discount note....... 08/12/96 24,501,250
30,000,000 Discount note....... 08/23/96 29,403,600
25,000,000 Discount note....... 11/26/96 24,170,139
30,000,000 Discount note....... 12/13/96 28,848,000
International
Securitization
Corporation:
27,862,000 Discount note(a).... 04/11/96 27,818,891
15,000,000 Discount note(a).... 04/25/96 14,944,800
ITT Industries:
25,000,000 Discount note(a).... 04/12/96 24,957,986
20,000,000 Discount note(a).... 04/16/96 19,955,000
25,000,000 Discount note(a).... 04/19/96 24,932,500
15,000,000 Discount note(a).... 04/19/96 14,959,500
20,000,000 Discount note(a).... 04/25/96 19,930,267
25,000,000 Discount note(a).... 05/03/96 24,884,000
20,000,000 Discount note(a).... 05/17/96 19,862,767
Lehman Brothers
Holdings Inc.:
50,000,000 Discount note....... 04/11/96 49,922,778
50,000,000 Discount note....... 11/05/96 48,525,472
75,000,000 Lehman Brothers Inc.,
Discount note....... 04/29/96 74,673,333
Mitsubishi
International
Corporation:
17,000,000 Discount note....... 06/07/96 16,830,732
12,300,000 Discount note....... 06/17/96 12,159,250
Mitsubishi Motor
Credit of America:
19,500,000 Bank of Tokyo LOC,
Discount note....... 04/22/96 19,437,665
21,872,000 Mitsubishi Bank Ltd.
LOC,
Discount note....... 04/22/96 21,805,017
50,000,000 Morgan Stanley
Group Inc.,
Discount note....... 07/22/96 49,222,222
National Bank of
Canada:
25,000,000 Discount note....... 08/14/96 24,541,562
25,000,000 Discount note....... 11/21/96 24,197,250
25,000,000 Discount note....... 11/22/96 24,205,243
25,000,000 Discount note....... 11/29/96 24,151,319
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 6
NATIONS FUND
Nations Prime Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
CORPORATE OBLIGATIONS -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
Nationwide Building
Society:
$ 25,000,000 Discount note....... 06/11/96 $ 24,741,639
50,000,000 Discount note....... 06/12/96 49,474,001
20,000,000 Discount note....... 07/05/96 19,737,167
75,000,000 New Center Asset
Trust,
Discount note....... 04/01/96 75,000,000
NYNEX Corporation:
20,000,000 Discount note....... 04/02/96 19,997,056
24,000,000 Discount note....... 04/26/96 23,912,500
20,000,000 Discount note....... 07/18/96 19,686,800
21,635,000 ODC Capital
Corporation,
Discount note(a).... 04/23/96 21,562,282
22,000,000 Province of Quebec,
Discount note....... 04/23/96 21,923,905
20,000,000 Riverwoods Funding
Corporation,
Discount note....... 06/14/96 19,796,500
Sharp Electronics
Corporation:
23,500,000 Discount note....... 04/26/96 23,410,243
30,000,000 Discount note....... 05/24/96 29,765,033
20,000,000 Discount note....... 06/14/96 19,792,800
24,200,000 Sherwood Medical
Company,
Discount note(a).... 05/29/96 23,996,868
SRD Finance Inc.,
Industrial Bank of
Japan Ltd. LOC:
15,000,000 Discount note....... 04/18/96 14,960,475
2,000,000 Discount note....... 04/25/96 1,992,560
Sumitomo Corporation
of America:
25,500,000 Discount note....... 06/14/96 25,203,846
25,000,000 Discount note....... 07/02/96 24,665,861
30,000,000 Discount note....... 07/08/96 29,572,883
14,436,000 Toshiba America, Inc.,
Discount note....... 08/16/96 14,155,821
Toshiba International
Finance Inc. Plc
(UK):
10,200,000 Discount note....... 05/21/96 10,124,208
13,100,000 Discount note....... 06/24/96 12,943,193
Tri-Lateral Capital
(USA) Inc.:
24,000,000 Discount note(a).... 04/04/96 23,989,200
22,134,000 Discount note(a).... 04/22/96 22,061,696
30,000,000 Discount note(a).... 05/16/96 29,805,000
14,251,000 Discount note(a).... 06/17/96 14,085,487
--------------
2,017,885,460
--------------
CORPORATE NOTES -- 21.7%
Abbey National
Treasury Services:
30,000,000 5.080%.............. 02/27/97 29,989,931
25,000,000 5.045%.............. 03/03/97 24,975,739
25,000,000 5.110%.............. 03/17/97 24,967,694
50,000,000 Barnett Banks, Inc.,
5.790%.............. 07/22/96 50,000,000
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
CORPORATE OBLIGATIONS -- (CONTINUED)
CORPORATE NOTES -- (CONTINUED)
Bear Stearns &
Company, Inc.:
$ 25,000,000 5.510%+............. 04/01/96+++ $ 25,000,000
50,000,000 5.025%.............. 02/10/97 50,000,000
25,000,000 5.250%.............. 02/26/97 25,000,000
15,000,000 5.115%.............. 02/28/97 15,000,000
Chrysler Financial
Corporation:
16,890,000 8.125%.............. 12/16/96 17,160,796
14,750,000 7.630%.............. 02/24/97 15,061,867
CS First Boston:
25,000,000 5.44000%+........... 04/01/96+++ 25,000,000
25,000,000 5.46000%+........... 04/01/96+++ 25,000,000
25,000,000 5.53000%+........... 04/01/96+++ 25,000,000
25,000,000 5.36250%+........... 04/04/96+++ 25,000,000
50,000,000 5.36250%+........... 04/12/96+++ 50,000,000
50,000,000 5.46016%+........... 04/22/96+++ 50,000,000
5,000,000 Ford Motor Credit
Corporation,
8.000%.............. 10/01/96 5,068,875
9,000,000 General Electric
Capital Corporation,
4.615%.............. 05/30/96 8,982,096
General Motors
Acceptance
Corporation:
50,000,000 5.480%+............. 04/01/96+++ 49,988,753
6,000,000 8.625%.............. 07/15/96 6,041,958
18,530,000 Lehman Brothers
Holdings Inc.,
8.375%.............. 04/01/97 19,072,268
Merrill Lynch &
Company Inc.:
25,000,000 5.440%+............. 04/01/96+++ 25,000,000
24,500,000 5.460%+............. 04/01/96+++ 24,500,000
100,000,000 5.520%+............. 04/01/96+++ 100,000,000
Shawmut National Bank:
100,000,000 5.480%+............. 04/01/96+++ 100,000,000
50,000,000 5.530%+............. 04/01/96+++ 50,000,000
25,000,000 5.560%+............. 04/01/96+++ 25,000,000
--------------
890,809,977
--------------
TOTAL CORPORATE OBLIGATIONS
(Cost $2,908,695,437)......... 2,908,695,437
==============
GUARANTEED INVESTMENT CONTRACTS -- 11.0%
Allstate Life
Insurance Company:
25,000,000 5.513%**+........... 06/29/96# 25,000,000
25,000,000 5.513%**+........... 06/29/96# 25,000,000
25,000,000 Anchor National Life
Insurance Company,
5.750%**+........... 06/29/96# 25,000,000
Commonwealth Life
Insurance Company,
Inc.:
62,000,000 5.550%**+........... 09/27/96# 62,000,000
10,000,000 5.550%**+........... 09/27/96# 10,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 7
NATIONS FUND
Nations Prime Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
GUARANTEED INVESTMENT CONTRACTS -- (CONTINUED)
$ 50,000,000 General American Life
Insurance Company,
5.510%**+........... 04/30/96# $ 50,000,000
60,000,000 Life Insurance Company
of Georgia,
6.0375%**+.......... 09/27/96# 60,000,000
Life Insurance Company
of Virginia:
50,000,000 5.333%**+........... 04/07/96# 50,000,000
25,000,000 5.352%**+........... 04/07/96# 25,000,000
25,000,000 5.352%**+........... 04/07/96# 25,000,000
20,000,000 Peoples Security Life
Insurance Company,
5.550%**+........... 09/27/96# 20,000,000
50,000,000 Sun Life Insurance
Company of America,
5.809%**+........... 09/27/96# 50,000,000
25,000,000 Travelers Life
Insurance Company,
5.403%**+........... 04/01/96+++ 25,000,000
--------------
TOTAL GUARANTEED INVESTMENT
CONTRACTS
(Cost $452,000,000)........... 452,000,000
=============
PROMISSORY NOTE -- 1.2% (Cost $50,000,000)
50,000,000 Goldman Sachs Group,
L.P.**,
5.875%.............. 04/16/96 50,000,000
=============
U.S. GOVERNMENT OBLIGATIONS -- 7.7%
Federal Home Loan
Bank:
5,000,000 5.530%+............. 04/01/96+++ 5,000,000
18,000,000 4.833%++............ 04/29/96+++ 18,000,000
50,000,000 Federal National
Mortgage
Association,
5.515%+............. 04/01/96+++ 50,000,000
Student Loan Marketing
Association:
20,000,000 5.290%+............. 04/02/96+++ 20,000,000
30,000,000 5.300%+............. 04/02/96+++ 30,000,000
11,600,000 5.310%+............. 04/02/96+++ 11,551,028
12,000,000 5.310%+............. 04/02/96+++ 12,000,000
47,500,000 5.330%+............. 04/02/96+++ 47,299,115
21,000,000 5.330%+............. 04/02/96+++ 20,972,130
70,000,000 5.420%+............. 04/02/96+++ 70,000,000
10,000,000 5.470%+............. 04/02/96+++ 10,000,000
20,000,000 6.080%+............. 07/01/96 19,998,963
--------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(Cost $314,821,236)........... 314,821,236
==============
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 1.8%
U.S. Treasury Notes:
$ 15,000,000 7.875%.............. 07/31/96 $ 15,099,937
25,000,000 6.750%.............. 02/28/97 25,369,379
35,000,000 6.875%.............. 02/28/97 35,532,396
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $76,001,712)............ 76,001,712
==============
<CAPTION>
SHARES
- -----------
<C> <S> <C> <C>
MONEY MARKET FUNDS -- 1.3%
43,734,000 AIM Liquid Asset
Portfolio..................... 43,734,000
8,482,000 Dreyfus Cash
Management Plus
Fund.......................... 8,482,000
28,000 Fidelity Institutional
Cash Portfolio................ 28,000
--------------
TOTAL MONEY
MARKET FUNDS
(Cost $52,244,000)............ 52,244,000
==============
TOTAL INVESTMENTS
(Cost $4,065,719,905*).............. 99.1% 4,065,719,905
OTHER ASSETS AND
LIABILITIES (NET)................... 0.9 36,053,456
---- --------------
NET ASSETS............................ 100.0% $4,101,773,361
====== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Restricted security (Note 5).
+ Floating/variable rate note. The interest rate shown reflects the rate in
effect at March 31, 1996.
++ Variable rate security. The interest rate shown is tied to the Cost of Funds
Index and resets on a delayed basis.
+++ Reset date. Interest rates reset either daily, weekly, monthly, quarterly or
semi-annually.
# Security subject to a demand feature which allows the Fund to put the
security back to the issuer from 7 to 180 calendar days.
(a) Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
ABBREVIATION:
LOC Letter of Credit
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 8
NATIONS FUND
Nations Government Money Market Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 92.7%
FEDERAL FARM CREDIT BANK -- 15.2%
$ 10,000,000 Discount note...... 04/01/96 $ 10,000,000
8,900,000 Discount note...... 04/08/96 8,891,232
8,000,000 Discount note...... 04/09/96 7,990,631
10,000,000 Discount note...... 04/15/96 9,979,855
10,000,000 Discount note...... 04/18/96 9,974,878
5,000,000 Discount note...... 05/30/96 4,954,849
10,000,000 Discount note...... 08/05/96 9,828,850
3,735,000 Discount note...... 08/14/96 3,666,229
8,000,000 Discount note...... 08/15/96 7,854,329
------------
73,140,853
------------
FEDERAL FARM CREDIT BANK
FLOATING RATE NOTES -- 4.1%
15,000,000 5.290%+............ 04/01/96+++ 14,998,943
5,000,000 5.330%+............ 04/01/96+++ 5,000,190
------------
19,999,133
------------
FEDERAL FARM CREDIT BANK NOTE -- 1.7%
8,000,000 5.750%............. 08/01/96 7,998,061
------------
FEDERAL HOME LOAN BANK -- 28.8%
9,000,000 Discount note...... 04/01/96 9,000,000
5,000,000 Discount note...... 04/02/96 4,999,288
3,200,000 Discount note...... 04/03/96 3,199,063
1,900,000 Discount note...... 04/08/96 1,898,020
16,000,000 Discount note...... 04/22/96 15,951,933
5,000,000 Discount note...... 04/29/96 4,978,767
10,000,000 Discount note...... 05/03/96 9,951,111
5,000,000 Discount note...... 05/06/96 4,975,792
6,595,000 Discount note...... 05/09/96 6,559,218
5,000,000 Discount note...... 05/22/96 4,962,671
5,000,000 Discount note...... 05/28/96 4,959,704
10,000,000 Discount note...... 06/07/96 9,908,992
10,000,000 Discount note...... 06/10/96 9,905,111
5,000,000 Discount note...... 06/14/96 4,948,405
10,000,000 Discount note...... 06/19/96 9,890,278
10,000,000 Discount note...... 06/20/96 9,892,222
8,000,000 Discount note...... 06/27/96 7,906,813
5,000,000 Discount note...... 07/09/96 4,934,000
10,000,000 Discount note...... 07/16/96 9,858,667
------------
138,680,055
------------
FEDERAL HOME LOAN BANK
FLOATING RATE NOTES -- 10.8%
20,000,000 5.290%+............ 04/01/96+++ 19,998,623
25,000,000 5.330%+............ 04/01/96+++ 24,999,128
7,000,000 4.833%++........... 04/29/96+++ 7,000,000
------------
51,997,751
------------
FEDERAL HOME LOAN BANK NOTES -- 14.5%
10,000,000 6.010%............. 05/15/96 9,999,219
10,000,000 5.705%............. 06/10/96 9,994,384
13,000,000 5.695%............. 06/26/96 13,018,068
5,000,000 4.860%............. 02/07/97 4,995,392
25,000,000 5.265%............. 03/13/97 25,000,000
7,000,000 5.392%............. 03/18/97 7,000,000
------------
70,007,063
------------
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- (CONTINUED)
STUDENT LOAN MARKETING ASSOCIATION
FLOATING RATE NOTES -- 13.5%
$ 10,000,000 5.270%+............ 04/02/96+++ $ 10,000,000
25,000,000 5.290%+............ 04/02/96+++ 25,000,000
14,800,000 5.310%+............ 04/02/96+++ 14,800,000
15,000,000 5.420%+............ 04/02/96+++ 15,000,000
------------
64,800,000
------------
TENNESSEE VALLEY AUTHORITY -- 4.1%
5,000,000 Discount note...... 04/03/96 4,998,539
8,000,000 Discount note...... 05/03/96 7,964,373
7,000,000 Discount note...... 07/26/96 6,887,222
------------
19,850,134
------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $446,473,050)............ 446,473,050
============
U.S. TREASURY OBLIGATIONS -- 7.2%
U.S. TREASURY BILLS -- 3.0%
10,000,000 Discount note...... 11/14/96 9,692,289
5,000,000 Discount note...... 02/06/97 4,794,826
------------
14,487,115
------------
U.S. TREASURY NOTES -- 4.2%
5,000,000 8.000%............. 01/15/97 5,108,333
5,000,000 6.250%............. 01/31/97 5,047,099
5,000,000 6.750%............. 02/28/97 5,071,081
5,000,000 6.875%............. 02/28/97 5,078,473
------------
20,304,986
------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $34,792,101)......... 34,792,101
============
</TABLE>
<TABLE>
<CAPTION>
SHARES
- -----------
<C> <S> <C> <C>
MONEY MARKET FUND -- 0.1% (Cost $217,500)
217,500 Dreyfus Treasury
Prime Cash
Management Fund.... 217,500
============
TOTAL INVESTMENTS
(Cost $481,482,651*)................ 100.0% 481,482,651
OTHER ASSETS AND
LIABILITIES (NET)................... (0.0) (38,428)
---- --------------
NET ASSETS............................ 100.0% $ 481,444,223
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate security. The interest rate shown reflects the rate in effect
at March 31, 1996.
++ Variable rate security. Interest rate shown is tied to the Cost of Funds
Index and resets on a delayed basis.
+++ Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 9
NATIONS FUND
Nations Treasury Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 32.8%
U.S. TREASURY BILLS -- 23.3%
$ 80,000,000 Discount note#....... 05/02/96 $ 79,633,985
50,000,000 Discount note#....... 05/09/96 49,735,583
25,000,000 Discount note#....... 05/30/96 24,772,809
50,000,000 Discount note#....... 07/05/96 49,340,277
120,000,000 Discount note#....... 07/25/96 117,976,958
40,000,000 Discount note#....... 08/01/96 39,361,534
10,000,000 Discount note........ 08/01/96 9,840,383
80,000,000 Discount note#....... 08/22/96 78,274,466
45,000,000 Discount note#....... 10/17/96 43,680,519
40,000,000 Discount note........ 11/14/96 38,769,155
30,000,000 Discount note#....... 02/06/97 28,757,296
20,000,000 Discount note........ 02/06/97 19,171,530
--------------
579,314,495
--------------
U.S. TREASURY NOTES -- 8.7%
20,000,000 4.250%#.............. 05/15/96 19,967,730
45,000,000 5.875%............... 05/31/96 44,992,107
25,000,000 7.875%............... 07/15/96 25,184,130
25,000,000 6.125%............... 07/31/96 25,089,966
25,000,000 7.875%............... 07/31/96 25,166,561
35,000,000 6.500%............... 09/30/96 35,209,087
10,000,000 8.000%............... 01/15/97 10,216,666
15,000,000 6.750%............... 02/28/97 15,213,243
15,000,000 6.875%............... 02/28/97 15,235,405
--------------
216,274,895
--------------
U.S. TREASURY STRIP -- 0.8%
20,000,000 Zero coupon.......... 11/15/96 19,355,458
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $814,944,848).. 814,944,848
==============
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
REPURCHASE AGREEMENTS -- 86.2%
REPURCHASE AGREEMENTS -- FIXED RATE -- 79.2%
606,000,000 Agreement with Bankers
Trust N.Y. Corporation,
5.450% dated 03/29/96, to be
repurchased at $606,275,225
on 04/01/96, collateralized by:
$313,036,398 U.S. Treasury
Bills due 04/11/96 -- 12/12/96;
$99,341,118 U.S. Treasury
Bonds, 7.125% -- 10.750% due
08/15/05 -- 02/15/25;
$205,989,907 U.S. Treasury
Notes, 5.000% -- 9.250% due
07/15/96 -- 11/15/05........... 606,000,000
531,756,000 Agreement with CS First
Boston Corporation.
Interest is payable monthly.
The agreement is terminable by
the Fund daily. The final
maturity date of the agreement
is 07/02/96,
collateralized by: $542,408,390
U.S. Treasury Strips, Interest
Only, due 02/15/99 -- 02/15/20##.. 531,756,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
REPURCHASE AGREEMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- FIXED
RATE -- (CONTINUED)
$ 15,000,000 Agreement with Dean Witter,
Reynolds, Inc., 5.100% dated
03/29/96, to be repurchased at
$15,006,375 on 04/01/96,
collateralized by $15,300,359
U.S. Government securities due
05/15/96 -- 05/15/24........... $ 15,000,000
20,000,000 Agreement with Dean Witter,
Reynolds, Inc., 5.300% dated
03/29/96, to be repurchased at
$20,008,833 on 04/01/96,
collateralized by $20,400,478
U.S. Government securities due
05/15/96 -- 05/15/24........... 20,000,000
122,000,000 Agreement with Deutsche Bank
Financial Inc., 5.400% dated
03/29/96, to be repurchased at
$122,054,900 on 04/01/96,
collateralized by: $26,485,500
U.S. Treasury Bills due
04/04/96 -- 07/25/96;
$6,208,469 U.S. Treasury Bonds,
10.750% -- 11.625% due
11/15/02 -- 02/15/03;
$91,746,656 U.S. Treasury
Notes, 4.750% -- 8.500% due
08/31/96 -- 11/15/05........... 122,000,000
122,000,000 Agreement with Goldman,
Sachs & Company,
5.400% dated 03/29/96, to be
repurchased at $122,054,900
on 04/01/96, collateralized by
$124,440,568 U.S. Treasury
Note, 4.375% due 08/15/96...... 122,000,000
122,000,000 Agreement with HSBC Securities,
5.400% dated 03/29/96, to be
repurchased at $122,054,900
on 04/01/96, collateralized by:
$24,531,040 U.S. Treasury
Notes, 4.750% -- 9.250% due
05/15/98 -- 01/31/99;
$38,042,546 U.S. Treasury
Strips due 05/15/97 --
02/15/25; $61,867,792 U.S.
Treasury Strips, Interest Only,
due 05/15/97 -- 02/15/25....... 122,000,000
70,000,000 Agreement with Lehman
Brothers Inc., 5.430% dated
03/29/96, to be repurchased at
$70,031,675 on 04/01/96,
collateralized by $71,390,841
U.S. Treasury Bond,
11.250% due 02/15/15........... 70,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 10
NATIONS FUND
Nations Treasury Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
REPURCHASE AGREEMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- FIXED
RATE -- (CONTINUED)
$122,000,000 Agreement with Morgan (J.P.)
Securities Inc.,
5.420% dated 03/29/96, to be
repurchased at $122,055,103 on
04/01/96, collateralized by:
$47,263,007 U.S Treasury Bill
due 09/19/96; $4,504,622 U.S.
Treasury Bonds,
7.125% -- 12.000% due
11/15/04 -- 02/15/25;
$14,571,609 U.S. Treasury
Notes, 6.250% -- 9.250%
due 05/15/96 -- 02/15/03;
$58,104,735 U.S. Treasury
Strips, Interest Only, due
05/15/96 -- 02/15/25........... $ 122,000,000
122,000,000 Agreement with Smith
Barney & Company,
5.420% dated 03/29/96, to be
repurchased at $122,055,103
on 04/01/96, collateralized by:
$124,440,717 U.S Treasury
Notes, 7.000% -- 8.500% due
07/31/96 -- 04/15/97........... 122,000,000
122,000,000 Agreement with UBS Securities,
Inc.,
5.400% dated 03/29/96, to be
repurchased at $122,054,900
on 04/01/96, collateralized by:
$124,443,706 U.S Treasury
Notes, 6.625% -- 7.500% due
01/31/97 -- 03/31/97........... 122,000,000
--------------
1,974,756,000
--------------
REPURCHASE AGREEMENTS -- TERM -- 7.0%
50,000,000 Agreement with Lehman
Brothers Inc.**, 5.330%, with a
final maturity date of
04/18/96. Interest receivable
as of March 31, 1996 was
$96,236, collateralized by:
$50,983,287 U.S. Treasury
Bonds, 7.125% -- 8.125% due
08/15/21 -- 02/15/23........... 50,000,000
75,000,000 Agreement with Merrill
Government Securities**,
5.500%+, with a final maturity
date of 04/11/96. Interest
receivable as
of March 31, 1996 was
$1,003,328, collateralized by
$76,502,569 U.S. Treasury Bond,
8.750% due 05/15/17............ 75,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
REPURCHASE AGREEMENTS -- (CONTINUED)
REPURCHASE AGREEMENTS -- TERM -- (CONTINUED)
$ 50,000,000 Agreement with Morgan Stanley
Group Inc.**, 5.300%, with a
final maturity date as of
07/03/96. Interest receivable
as of March 31, 1996 was
$640,417, collateralized by
$51,240,657 U.S. Treasury Note,
7.500% due 12/31/96............ $ 50,000,000
--------------
175,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,149,756,000).......... 2,149,756,000
=============
</TABLE>
<TABLE>
<CAPTION>
SHARES
- -----------
<C> <S> <C>
MONEY MARKET FUNDS -- 2.5%
23,070,000
AIM Treasury Fund................ 23,070,000
23,995,000
Dreyfus Treasury Cash
Management Fund.................. 23,995,000
15,840,000
Fidelity Institutional Cash
Portfolio........................ 15,840,000
--------------
TOTAL MONEY
MARKET FUNDS
(Cost $62,905,000)............. 62,905,000
=============
TOTAL INVESTMENTS
(Cost $3,027,605,848*).............. 121.5% 3,027,605,848
OTHER ASSETS AND
LIABILITIES (NET)................... (21.5) (535,669,998)
------ --------------
NET ASSETS............................ 100.0% $2,491,935,850
====== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes is $3,027,620,403.
** Illiquid security (Note 5).
+ Rate resets daily. The interest rate shown reflects the rate in effect at
March 31, 1996.
# Denotes security subject to repurchase under reverse repurchase agreement as
of March 31, 1996 (Note 1).
## Securities segregated as collateral for reverse repurchase agreement.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 11
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 99.4%
ALABAMA -- 2.9%
$ 6,400,000 Alabama (State of), Housing
Finance Authority, Multi-family
Housing, (Ski Lodge III),
Series A, AmSouth Bank N.A.,
Birmingham LOC,
3.350% 03/01/15+............... $ 6,400,000
1,725,000 Birmingham, Alabama, Industrial
Development Board, (Avondale --
Phase III ), AmSouth Bank N.A.,
Birmingham LOC,
3.850% 06/01/00+............... 1,725,000
12,400,000 Birmingham, Alabama, Medical
Clinic Board Revenue,
(University of Alabama Health
Services), Morgan Guaranty
Trust Company, New York LOC,
3.950% 12/01/26++.............. 12,400,000
1,300,000 Fort Payne, Alabama, Industrial
Development Board, Industrial
Development Revenue, (Brookwood
Expansion Project), AmSouth
Bank N.A.,
Birmingham LOC,
3.600% 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,
3.600% 05/01/04+............... 4,005,000
5,000,000 Irondale, Alabama, Industrial
Development Board, (Commerce
Square Project), AMT, AmSouth
Bank N.A., Birmingham LOC,
3.700% 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,
3.350% 07/01/04+............... 2,100,000
4,000,000 Mobile, Alabama, Industrial
Development Board,
(IB Chemical), Industrial
Bank of Japan Ltd. LOC,
3.550% 12/01/97+............... 4,000,000
2,000,000 Opelika, Alabama, Industrial
Development Board, (Flowers
Baking Company Project), Trust
Company Bank LOC,
3.450% 12/01/99+............... 2,000,000
2,650,000 Phenix City, Alabama, Industrial
Development Board, (Georgia
Kraft Project), Canadian
Imperial Bank of Commerce LOC,
3.950% 12/01/15++.............. 2,650,000
--------------
41,580,000
--------------
ALASKA -- 0.4%
5,000,000 Valdez, Alaska, Marine Term
Revenue, (Arco Transportation
Project), Series B, Atlantic
Richfield Guaranteed,
3.400% 05/01/31+............... 5,000,000
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ARIZONA -- 4.8%
Apache (County of), Arizona,
Industrial Development
Authority, PCR, (Tuscon
Electric Power):
$ 5,500,000 Series 83A, Barclays Bank Plc
LOC,
3.450% 12/15/18+............... $ 5,500,000
20,300,000 Series A, Chemical Bank LOC,
3.450% 06/15/20+............... 20,300,000
5,100,000 Casa Grande, Arizona, Industrial
Development Authority,
(Mayville Metal Project), PNC
Bank LOC,
3.400% 07/01/15+............... 5,100,000
8,000,000 Goodyear, Arizona, Industrial
Development Authority, (Walle
Corporation Project), AMT, PNC
Bank LOC,
3.600% 05/01/15+............... 8,000,000
4,200,000 Maricopa (County of), Arizona,
Industrial Development
Authority, Multi-family Housing
Revenue, (Privado Park
Apartments Project), Series A,
AMT, Bank One, Phoenix LOC,
3.600% 06/01/34+............... 4,200,000
5,000,000 Pima (County of), Arizona,
Industrial Development
Authority, (Tuscon Electric),
Series A,
Bank of America LOC,
3.400% 07/01/22+............... 5,000,000
20,000,000 Salt River, Arizona, Agriculture
Improvement and Development
District, Union Bank of
Switzerland SBPA,
3.650% 04/04/96................ 20,000,000
--------------
68,100,000
--------------
ARKANSAS -- 0.4%
6,300,000 Little Rock, Arkansas,
Metrocenter Improvement
District No. 1 Revenue, (Little
Rock Newspaper Inc.), Bank of
New York LOC,
3.950% 12/01/25++.............. 6,300,000
--------------
CALIFORNIA -- 3.5%
5,000,000 Contra Costa (County of),
California, Tax and Revenue
Anticipation Notes, GO,
4.500% 07/03/96................ 5,010,411
5,000,000 Kern (County of), California, Tax
and Revenue Anticipation Notes,
4.500% 07/02/96................ 5,007,007
3,400,000 Los Angeles, California, Regional
Airports, (Los Angeles
International Airport), AMT,
Societe Generale LOC,
3.900% 12/01/25++.............. 3,400,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 12
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <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................ $ 7,514,697
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................ 5,006,864
10,000,000 San Diego, California, Tax
Anticipation Notes, Series A,
4.750% 07/03/96................ 10,020,770
3,400,000 San Luis Obispo (County of),
California, Tax and Revenue
Anticipation Notes,
4.750% 06/27/96................ 3,406,223
5,000,000 Tuolumne (County of), California,
Board of Education, Tax and
Revenue Anticipation Notes, GO,
4.500% 06/28/96................ 5,006,361
--------------
49,072,333
--------------
COLORADO -- 2.4%
Colorado (State of), Housing
Finance Authority, Multi-family
Housing Revenue:
3,000,000 (Central Park Convention Center),
Chemical Bank LOC,
3.400% 05/01/97+............... 3,000,000
13,000,000 Series A, Bankers Trust Company
LOC,
3.425% 11/01/09+............... 13,000,000
Denver (City & County of),
Colorado, Airport Revenue, AMT:
3,500,000 Series F, Bank of Montreal LOC,
3.600% 11/15/25+............... 3,500,000
5,000,000 Series G, Credit Local
de France LOC,
3.600% 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,
3.400% 12/01/24+............... 2,205,000
3,100,000 Northglenn, Colorado, Industrial
Development Revenue,
(Castle Gardens Retirement),
Swiss Bank LOC,
3.300% 01/01/09+............... 3,100,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
COLORADO -- (CONTINUED)
Pitkin (County of), Colorado,
Industrial Development Revenue,
(Aspen Skiing Company Project),
First National Bank of Chicago
LOC:
$ 2,300,000 Series A,
3.800% 04/01/16++.............. $ 2,300,000
1,900,000 Series B, AMT,
3.850% 04/01/14++.............. 1,900,000
--------------
34,005,000
--------------
DELAWARE -- 1.7%
24,000,000 Delaware (State of), Educational
Development Authority Revenue,
Hospital Billing, Series C,
MBIA Insured, Morgan Stanley
Group, Inc. SBPA,
3.450% 12/01/15+............... 24,000,000
--------------
DISTRICT OF COLUMBIA -- 0.2%
2,900,000 District of Columbia, Hospital
Revenue, (Columbia Women's
Hospital), Series A, Mitsubishi
Bank Ltd. LOC,
3.700% 07/01/20+............... 2,900,000
--------------
FLORIDA -- 7.2%
10,810,000 Broward (County of), Florida,
Housing Finance Authority,
Multi-family Housing Revenue,
(Fishermans Project), AMT,
Continental Casualty Surety
Bond,
3.650% 11/01/07+............... 10,810,000
3,000,000 Clay (County of), Florida,
Industrial Development
Authority, (Carlisle
Corporation Project), AMT,
Trust Company Bank LOC,
3.550% 08/01/04+............... 3,000,000
Dade (County of), Florida,
Industrial Development
Authority:
2,300,000 (Dolphins Stadium Project),
Series C, Societe Generale LOC,
3.400% 01/01/16+............... 2,300,000
3,000,000 (Phase II Furniture Corporation
Project), AMT, Sun Bank N.A.
LOC,
3.550% 11/01/14+............... 3,000,000
14,998,500 Florida (State of), Board of
Education, Capital Outlay,
BTP-179,
3.450% 06/01/01+............... 14,998,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 13
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
Florida (State of), Housing
Finance Agency, Multi-family
Housing Revenue:
$ 2,400,000 (Clear Lake Project), Series D,
Continental Casualty Surety
Bond,
3.650% 01/01/34+............... $ 2,400,000
5,000,000 (Lakeside Project), Series B,
Bankers Trust Company LOC,
3.425% 08/01/06+............... 5,000,000
7,000,000 (Woodlands Project), Citibank
LOC,
3.400% 12/01/07+............... 7,000,000
4,000,000 Hillsborough (County of),
Florida, Industrial Development
Authority, Industrial
Development Revenue, (Seaboard
Tampa Project), Barclays Bank
Plc LOC,
3.400% 12/01/16+............... 4,000,000
9,700,000 Jacksonville, Florida, Health
Facilities Authority, Hospital
Revenue, (Baptist Medical
Center Project), MBIA Insured,
Sun Bank N.A. SBPA,
3.850% 06/01/08++.............. 9,700,000
2,500,000 Key West, Florida, Community
Redevelopment Agency Revenue,
(Pier House Joint Venture),
PNC Bank, Ohio LOC,
3.450% 01/01/98+............... 2,500,000
10,385,000 Orange (County of), Florida,
Health Facilities Authority
Revenue, (SHCC Services Inc.
Project), Sun Bank N.A. LOC,
3.350% 12/01/23+............... 10,385,000
5,000,000 Orange (County of), Florida,
Housing Finance Agency,
Series B, AMT,
3.650% 04/01/97................ 5,000,000
3,350,000 St. Lucie (County of), Florida,
Industrial Development
Authority, (Florida
Convalescent Centers Project),
Series A, Toronto Dominion Bank
LOC,
3.400% 01/01/11+++............. 3,350,000
St. Lucie (County of), Florida,
PCR, (Florida Power and Light
Company):
8,025,000 3.650% 05/16/96................ 8,025,000
5,000,000 3.650% 05/16/96................ 5,000,000
5,100,000 University of Northern Florida,
Capital Improvement, First
Union National Bank, North
Carolina LOC,
3.300% 11/01/24+............... 5,100,000
--------------
101,568,500
--------------
GEORGIA -- 5.7%
10,000,000 Albany-Dougherty, Georgia,
Payroll Development Authority,
PCR, (Philip Morris Companies
Inc. Project),
3.450% 10/01/05+............... 10,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 1,000,000 Burke (County of), PCR, Series A,
(Oglethorpe Power Corporation),
FGIC Insured, Credit Local
de France SBPA,
3.300% 01/01/19+............... $ 1,000,000
1,820,000 Clayton (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue,
(Rolling Hills Apartments
Project), AmSouth Bank N.A.,
Birmingham LOC,
3.600% 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,
3.450% 08/01/18+............... 3,900,000
3,000,000 Columbia (County of), Georgia,
Residential Care Facilities for
the Elderly Authority, (Augusta
Residential Center on Aging),
Trust Company Bank LOC,
3.450% 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,
3.750% 02/01/05+............... 2,250,000
3,940,000 Columbus, Georgia, Industrial
Development Revenue, (Parisian
Inc. Project), Columbus Bank &
Trust Company LOC,
3.700% 04/01/07+............... 3,940,000
Dekalb (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue:
5,430,000 (Haystack Apartment Projects),
AMT, General Electric Capital
Corporation LOC,
3.850% 12/01/20+............... 5,430,000
4,600,000 (Stone Mill Run Apartments
Project), Series A, AMT, First
Tennessee Bank LOC,
3.550% 08/01/27+............... 4,600,000
5,000,000 (Terrace Club Project), Series B,
Southtrust Bank LOC,
3.600% 11/01/15+............... 5,000,000
Dekalb (County of), Georgia,
Hospital Authority, Revenue
Anticipation Certificates:
4,160,000 (Dekalb Medical Center Project),
Trust Company Bank LOC,
3.450% 09/01/09+............... 4,160,000
9,500,000 (Egleston Childrens Health),
Series A, Suntrust Bank,
Atlanta LOC,
3.300% 12/01/17+............... 9,500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 14
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 3,800,000 Glynn-Brunswick Memorial Hospital
Authority, Georgia, Revenue
Anticipation Certificates,
(Georgia Regional Project),
Series A, Trust Company Bank
LOC,
3.450% 08/01/09+............... $ 3,800,000
2,900,000 Greene (County of), Georgia,
Industrial Development
Authority Revenue,
(Chipman-Union Inc. Project),
Series A, AMT, Trust Company
Bank LOC,
3.550% 03/01/05+............... 2,900,000
3,000,000 Henry (County of), Georgia,
Development Authority Revenue,
(Georgia Pacific Corporation
Project), Trust Company Bank
LOC,
3.450% 05/01/04+............... 3,000,000
1,900,000 Savannah, Georgia, Multi-family
Housing Authority Revenue,
(Somerset Place Project),
AmSouth Bank N.A., Birmingham
LOC,
3.500% 10/01/13+............... 1,900,000
5,000,000 Smyrna, Georgia, Multi-family
Housing Authority Revenue,
(Post VY Project), FNMA
Insured,
3.350% 06/01/25+............... 5,000,000
4,000,000 Tallapoosa, Georgia, Development
Authority Revenue, (U.S. Canada
Company Project), Harris Trust
& Savings Bank LOC,
3.400% 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,
3.500% 04/01/00+............... 5,000,000
--------------
80,200,000
--------------
IDAHO -- 1.4%
20,000,000 Idaho Health Facilities
Authority, Holy Cross Health
Systems Corporation Revenue,
3.350% 12/01/23+............... 20,000,000
--------------
ILLINOIS -- 7.5%
3,600,000 Chicago, Illinois, Industrial
Development Revenue, (Eli's
Chicago's Finest Inc.),
First Bank LOC,
3.550% 11/01/26+............... 3,600,000
2,200,000 Illinois (State of), Development
Finance Authority, Economic
Development Revenue, (Addison
450 LP Project), American
National Bank & Trust Company
LOC,
3.700% 12/01/09+............... 2,200,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
Illinois (State of), Development
Finance Authority, Industrial
Development Revenue:
$ 2,000,000 (MTI Project), AMT, Industrial
Bank of Japan Ltd., NY LOC,
3.800% 01/01/09+............... $ 2,000,000
1,700,000 (Quality Screw & Nut Company
Project), First National Bank
of Chicago LOC,
3.700% 05/01/15+............... 1,700,000
3,300,000 (Randolph Pickle Corporation),
AMT, American National Bank &
Trust Company LOC,
3.650% 06/01/12+............... 3,300,000
Illinois (State of), Development
Finance Authority, AMT:
1,500,000 (L. Karp & Sons Inc.), AMT,
American National Bank & Trust
Company, Chicago LOC,
3.850% 09/01/05+............... 1,500,000
1,500,000 (Residential Rental -- River
Oak), AMT, Swiss Bank LOC,
3.400% 12/15/19+............... 1,500,000
9,300,000 Illinois (State of), Development
Finance Authority, PCR,
(Illinois Power Company
Project), Series B, AMT,
Mitsubishi Bank Ltd. LOC,
3.550% 03/01/17+............... 9,300,000
Illinois (State of), Educational
Facilities Revenue:
4,960,000 (Art Institute), Mitsubishi Bank
Ltd. LOC,
3.700% 03/01/27+............... 4,960,000
3,700,000 (Illinois Institute of
Technology), Series A, Harris
Trust & Savings Bank; Northern
Trust Company; and National
Bank of Detroit LOC,
3.400% 09/01/25+............... 3,700,000
Illinois (State of), Health
Facilities Authority Revenue:
(Evanston Hospital Corporation
Project):
5,000,000 4.000% 05/15/96................ 5,000,000
7,000,000 Series B,
3.150% 01/31/97................ 7,000,000
6,700,000 (The Streeterville Corporation
Project), First National Bank
of Chicago LOC,
3.400% 08/15/24+............... 6,700,000
(Victory Health Project), Series
C, First National Bank of
Chicago LOC:
11,300,000 3.400% 05/22/96................ 11,300,000
9,900,000 3.400% 05/22/96................ 9,900,000
20,055,000 Illinois (State of), BTP-172,
3.500% 12/01/01+............... 20,055,000
4,500,000 Kane (County of), Illinois,
Revenue Bonds, (Glenwood School
For Boys), Harris Trust &
Savings Bank, Illinois LOC,
3.400% 02/01/28+............... 4,500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 15
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$ 3,200,000 Kane (County of), Illinois,
Unified School District No.
304, Tax Anticipation Warrants,
4.150% 12/03/96................ $ 3,208,330
1,900,000 Southwestern Illinois Development
Authority, Industrial
Development Revenue, (Robinson
Steel Company Inc. Project),
AMT, American National Bank &
Trust Company LOC,
3.700% 12/01/06+............... 1,900,000
3,000,000 Winnebago & Boone (Counties of),
Illinois, School District No.
205, Tax Anticipation Warrants,
4.350% 10/30/96................ 3,020,493
--------------
106,343,823
--------------
INDIANA -- 6.3%
7,000,000 Carmel Clay, Indiana, Tax
Anticipation Warrants, General
Funding,
3.750% 12/31/96................ 7,010,078
30,000,000 Indiana (State of), Bond Bank,
Advance Funding Program,
Promissory Notes,
4.250% 01/09/97................ 30,195,864
Indiana (State of), Development
Finance Authority, Economic
Development Revenue:
2,400,000 (Fischer Enterprises Ltd
Project), PNC Bank LOC,
3.600% 11/01/01+............... 2,400,000
2,600,000 (Walker-Williams Lumber), AMT,
Columbus Bank & Trust Company
LOC,
3.700% 01/01/09+............... 2,600,000
2,500,000 Indianapolis, Indiana, Economic
Development Revenue, (Art
Center of Indianapolis
Project), Bank One LOC,
3.500% 02/01/98+............... 2,500,000
3,300,000 Indianapolis, Indiana,
Multi-family Housing Revenue,
(El Beulah Retirement Village),
National Bank of Detroit LOC,
3.500% 03/01/21+............... 3,300,000
Jasper (County of), Indiana, PCR,
(Northern Indiana Public
Service), Barclays Bank Plc
LOC:
12,000,000 3.650% 04/08/96................ 12,000,000
3,200,000 3.650% 04/08/96................ 3,200,000
16,255,000 Sullivan, Indiana, PCR, National
Rural/CFC Insured,
3.650% 04/04/96................ 16,255,000
9,500,000 Vigo (County of), Indiana,
General Funded Warrants,
3.500% 12/27/96................ 9,510,279
--------------
88,971,221
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
IOWA -- 1.4%
$ 7,500,000 Iowa (State of), Corporation
Warrant Certificates, Series A,
FSA Insured-State Aid
Withholding, Bayerische
Landesbank SBPA,
4.750% 06/28/96#............... $ 7,515,616
7,000,000 Iowa (State of), Finance
Authority, Solid Waste Disposal
Revenue, (Cedar River Paper
Company), Series A, AMT, Swiss
Bank LOC,
3.800% 07/01/23++.............. 7,000,000
5,000,000 Iowa (State of), Student Loan
Liquidity Corporation, Series
A, AMT, AMBAC Guaranteed,
Norwest Corporation SBPA,
3.400% 12/01/13+............... 5,000,000
--------------
19,515,616
--------------
KANSAS -- 1.5%
9,600,000 Kansas (State of), Development
Finance Authority, (Seaboard
Projects), Series A, AMT, Bank
of New York LOC,
3.600% 12/02/25+............... 9,600,000
11,650,000 Olathe, Kansas, Educational
Facilities Revenue, (Kansas
Independent College
Association), Series A, Marine
Midland Bank and Hong Kong and
Shanghai Banking Corporation
Ltd. LOC,
3.400% 07/01/24+............... 11,650,000
--------------
21,250,000
--------------
KENTUCKY -- 1.9%
2,200,000 Hopkinsville, Kentucky,
Industrial Building Revenue,
(Brazeway Inc. Project), AMT,
National Bank of Detroit LOC,
3.700% 06/01/04+............... 2,200,000
1,296,000 Jefferson (County of), Kentucky,
Hospital Revenue, (Belknap Inc.
Project), Chemical Bank LOC,
3.550% 12/01/14+++............. 1,296,000
6,200,000 Kentucky League of Cities,
Revenue Anticipation Notes,
(Madisonville), Series B, Bank
One, Kentucky LOC,
3.500% 03/01/97+............... 6,200,000
3,500,000 Lebanon, Kentucky, Industrial
Development Revenue, (Wallace
Computer Services Inc.), AMT,
Wachovia Bank, Georgia LOC,
3.600% 06/01/19+............... 3,500,000
4,525,000 Lexington-Fayette, Kentucky,
Psychiatric Hospital Revenue,
(Charter Ridge Hospital
Project), Bankers Trust Company
LOC,
3.350% 03/01/05+............... 4,525,000
5,630,000 Louisville and Jefferson
(Counties of), Kentucky,
Visitors and Convention
Commission, FSA Insured,
3.350% 01/01/24+............... 5,630,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 16
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
KENTUCKY -- (CONTINUED)
$ 3,200,000 Louisville, Kentucky, Airport
Lease Revenue, Series B, AMT,
National City Bank LOC,
3.500% 02/01/19+............... $ 3,200,000
--------------
26,551,000
--------------
LOUISIANA -- 3.6%
5,100,000 Ascension Parish, Louisiana, PCR,
(Borden Inc. Project), Credit
Suisse LOC,
3.300% 12/01/09+............... 5,100,000
6,050,000 Caddo Parish, Louisiana,
Industrial Development Board,
(Frymaster Corporation
Project), Chemical Bank LOC,
3.350% 01/01/03+............... 6,050,000
Louisiana (State of), Public
Facilities Authority, Hospital
Revenue:
5,100,000 (Charter Forest Hospital
Project), Bankers Trust Company
LOC, 3.350% 12/01/13+.......... 5,100,000
5,000,000 (Willis-Knighton Medical Center
Project), AMBAC Insured,
Mellon Bank SBPA,
3.500% 09/01/25+............... 5,000,000
20,225,000 Louisiana (State of), Public
Facilities Authority, PCR,
(Ciba-Geigy Corporation
Project), Swiss Bank LOC,
3.350% 12/01/04+............... 20,225,000
5,000,000 St. Charles, Louisiana, PCR,
3.250% 05/24/96................ 5,000,000
4,700,000 South Louisiana, Port Commission,
Marine Term Facilities Revenue,
(Occidental Petroleum), Credit
Suisse LOC,
3.350% 07/01/21+............... 4,700,000
--------------
51,175,000
--------------
MAINE -- 1.2%
17,250,000 Maine (State of), Solid Waste
Resources Recovery Revenue,
Series K, AMT, Marine Midland
Bank and Hong Kong
and Shanghai Banking
Corporation Ltd. LOC,
3.450% 07/01/12+............... 17,250,000
--------------
MARYLAND -- 0.9%
6,600,000 Baltimore (City of), Maryland,
Economic Development Authority
Revenue, (Blue Circle Inc.
Project), Den Danske Bank LOC,
3.450% 12/01/17+............... 6,600,000
3,300,000 Baltimore (City of), Maryland,
Port Facilities Authority,
(Occidental Petroleum Company),
National Westminster Bank Plc
LOC,
3.350% 10/14/11+++............. 3,300,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$ 2,300,000 Maryland (State of), Industrial
Development Finance Authority,
(Rock-Tennessee Converting
Company), AMT, Trust Company
Bank LOC,
3.550% 05/01/06+............... $ 2,300,000
--------------
12,200,000
--------------
MASSACHUSETTS -- 0.1%
2,000,000 Massachusetts (Commonwealth of),
Industrial Finance Authority,
Industrial Development Revenue,
AMT, (Barker Steel Company),
State Street Bank & Trust
Company LOC,
3.400% 11/01/15+............... 2,000,000
--------------
MICHIGAN -- 1.1%
2,000,000 Jackson (County of), Michigan,
Economic Development
Corporation, Economic
Development Revenue, (Sealed
Power Corporation), National
Bank of Detroit LOC,
3.500% 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,
3.500% 10/01/14+............... 3,425,000
5,000,000 Michigan (State of), GO,
4.000% 09/30/96................ 5,024,484
3,000,000 Michigan (State of), Housing
Development Authority, Limited
Obligation Revenue, (Pine Ridge
Project), National Westminster
Bank Plc LOC,
3.300% 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,
3.600% 12/01/98+............... 2,600,000
--------------
16,049,484
--------------
MINNESOTA -- 0.9%
6,075,000 Minneapolis, Minnesota, Community
Development Agency Revenue,
(Arena Acquisition Project),
Series A, First Bank LOC,
3.450% 10/01/24+............... 6,075,000
6,000,000 Rochester (City of), Minnesota,
Health Care Facilities Revenue,
(Mayo Medical Center),
Series 92,
3.200% 05/16/96................ 6,000,000
--------------
12,075,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 17
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSISSIPPI -- 0.4%
Mississippi Business Finance
Corporation, Industrial
Development Revenue, AMT:
$ 3,000,000 (Choctaw Maid Farms Inc.
Project), Rabobank Nederland
LOC,
3.550% 03/01/10+............... $ 3,000,000
3,000,000 (Nitek Metal Services Inc.
Project), AMT, Mitsubishi Bank
Ltd. LOC,
3.600% 03/01/05+............... 3,000,000
--------------
6,000,000
--------------
MISSOURI -- 2.7%
Missouri (State of), Health &
Educational Facilities
Authority Revenue:
3,400,000 School District Advance Funding
Program, Series D, Bayerische
Landesbank SBPA,
4.500% 08/19/96................ 3,406,852
10,000,000 (Sisters of Mercy Health),
Series B,
3.400% 12/01/16+............... 10,000,000
7,500,000 (SSM Health Care Projects),
Series C, Credit Suisse LOC,
3.300% 06/01/22+............... 7,500,000
7,000,000 Missouri (State of), Housing
Development Commission, AMT,
FGIC SBPA,
4.000% 07/01/96 #.............. 7,000,000
9,725,000 Platte (County of), Missouri,
Industrial Development
Authority, Multi-family Housing
Revenue, (Wexford Place
Project), Bank One LOC,
3.400% 04/01/28+............... 9,725,000
--------------
37,631,852
--------------
MONTANA -- 1.3%
4,100,000 Forsyth, Montana, PCR, (Portland
General Electric Company),
Banque Nationale de Paris LOC,
3.800% 12/01/16++.............. 4,100,000
14,000,000 Montana (State of), Health
Facilities Authority Revenue,
Pooled Loan Program, Series A,
FGIC Insured, Norwest
Corporation SBPA,
3.300% 12/01/15+............... 14,000,000
--------------
18,100,000
--------------
NEBRASKA -- 0.9%
4,200,000 Nebraska (State of), Higher
Education Loan Program, Student
Loan, Series E, MBIA Insured,
3.350% 12/01/15+............... 4,200,000
5,000,000 Omaha, Nebraska, Public Power
District,
3.650% 04/08/96................ 5,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEBRASKA -- (CONTINUED)
$ 4,000,000 York, Nebraska, Industrial
Development Revenue, (Sunstrand
Corporation Project), AMT,
Union Bank of Switzerland LOC,
3.650% 08/01/17+............... $ 4,000,000
--------------
13,200,000
--------------
NEW HAMPSHIRE -- 1.1%
15,500,000 New Hampshire (State of), Housing
Finance Authority, Series 1,
(Multi-family-Manchester), PNC
Bank LOC,
3.450% 12/01/12+............... 15,500,000
--------------
NEW JERSEY -- 0.4%
5,000,000 North Bergen Township, New
Jersey, State Aid Notes,
5.000% 04/26/96................ 5,001,611
--------------
NEW MEXICO -- 1.1%
2,800,000 Albuquerque, New Mexico, (Charter
Hospital Inc. Project), Bankers
Trust Company LOC,
3.350% 03/01/14+............... 2,800,000
14,500,000 Farmington, New Mexico, Utility
System Revenue, FGIC Insured,
Pre-refunded at 102%,
9.750% 05/15/96................ 14,888,397
--------------
17,688,397
--------------
NEW YORK -- 0.7%
10,000,000 New York, New York, GO, Series
J-3, Morgan Guaranty Trust
Company, New York LOC,
3.500% 08/30/96................ 10,000,000
--------------
NORTH CAROLINA -- 2.7%
8,000,000 Bladen (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (BCH Energy LP
Project), AMT, Mitsubishi Bank
Ltd. LOC,
3.750% 11/01/20+............... 8,000,000
3,000,000 Iredell, (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (Sullivan
Corporation Project), Bank One
LOC,
3.650% 01/01/11+............... 3,000,000
9,020,000 Mecklenburg (County of), North
Carolina, Series B, GO,
4.700% 03/01/97................ 9,140,682
Mecklenburg (County of), North
Carolina, Industrial Facilities
and Pollution Control Finance
Authority:
3,800,000 (Edgecomb Metals), Banque
Nationale de Paris LOC,
3.300% 12/01/09+............... 3,800,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 18
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
Mecklenburg (County of), North
Carolina, Industrial Facilities
and Pollution Control Finance
Authority -- (continued):
$ 2,375,000 (Virkler Company Project), AMT,
First Union National Bank,
North Carolina LOC,
3.600% 12/01/04+............... $ 2,375,000
4,500,000 Randolph (County of), North
Carolina, Industrial Facilities
and Pollution Control Financing
Authority, (Wayne Steel Inc.),
AMT, Bank One, Akron LOC,
3.650% 09/01/05+............... 4,500,000
3,300,000 Stanley (County of), North
Carolina, Industrial
Development Authority, PCR,
(General Signal), Wachovia Bank
LOC,
3.350% 12/01/00+............... 3,300,000
4,000,000 Winston-Salem, North Carolina,
(Risk Acceptance Management
Corporation Project),
Certificates of Participation,
Series 1988, National
Westminster
Bank Plc SBPA,
3.400% 07/01/09+............... 4,000,000
--------------
38,115,682
--------------
OHIO -- 1.2%
4,200,000 Lorain (County of), Ohio,
Hospital Revenue, (Humility of
Mary Health Care Corporation
Hospital), Series B, PNC Bank
LOC,
3.450% 12/15/03+............... 4,200,000
Ohio (State of), Air Quality
Developement 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,
3.300% 06/01/01+............... 2,800,000
--------------
17,000,000
--------------
OKLAHOMA -- 0.6%
8,330,000 Oklahoma (State of), Housing
Finance Agency, Single Family
Housing Revenue, AMT,
GNMA Insured,
3.450% 08/01/18+............... 8,330,000
--------------
OREGON -- 1.2%
8,000,000 Oregon (State of), Housing and
Community Services Department,
Mortgage Revenue, Single Family
Mortgage Program, Series D,
AMT,
4.100% 09/03/96................ 8,000,000
Portland (City of), Oregon,
Multi-family Housing Revenue:
1,000,000 (Union Station Project), AMT,
U.S. National Bank LOC,
3.650% 12/01/27+............... 1,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OREGON -- (CONTINUED)
$ 5,500,000 (University Park Apartments
Project), Chemical Bank LOC,
3.450% 10/01/11+............... $ 5,500,000
3,000,000 Washington (County of), Oregon,
Housing Authority, Multi-family
Housing Revenue, (Cedar Mill
Project), AMT, Societe Generale
LOC,
3.550% 09/20/25+............... 3,000,000
--------------
17,500,000
--------------
PENNSYLVANIA -- 4.4%
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
9,800,000 United Jewish Federation, Series
B, PNC Bank LOC,
3.450% 10/01/25+............... 9,800,000
Delaware Valley, Pennsylvania,
Regional Finance Authority,
Marine Midland Bank and Hong
Kong and Shanghai Banking
Corporation Ltd. LOC:
10,000,000 Local Government Revenue,
Series C,
3.500% 12/01/20+............... 10,000,000
14,700,000 Series 1986,
3.500% 08/01/16+............... 14,700,000
5,025,000 Union (County of), Pennsylvania,
Hospital Authority Revenue,
(Evangelical Community
Hospital), Series B, PNC Bank
LOC,
3.450% 10/01/23+............... 5,025,000
Venango (City of), Pennsylvania,
Regional Finance Authority
Revenue, (Scrubgrass Project),
AMT, National Westminster Bank
Plc LOC:
7,150,000 3.350% 05/20/96................ 7,150,000
10,300,000 3.300% 05/22/96................ 10,300,000
--------------
61,975,000
--------------
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,
3.500% 04/01/04+............... 4,000,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 19
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- 3.1%
$ 6,100,000 Charleston, South Carolina,
Hospital Facilities Revenue,
(Brown Schools Charleston),
Bankers Trust Company LOC,
3.350% 06/01/11+............... $ 6,100,000
5,000,000 Charleston, South Carolina, Tax
Anticipation Notes, GO,
3.600% 03/14/97**.............. 5,004,550
8,700,000 Greenville (County of), South
Carolina, School District, GO,
3.500% 03/01/97................ 8,715,408
5,250,000 Kershaw (County of), South
Carolina, Industrial
Development Revenue, (Deroyal
Textiles Inc. Project), AMT,
Third National Bank, Nashville
LOC,
3.550% 12/01/07+............... 5,250,000
South Carolina (State of), Jobs,
Economic Development Authority,
Health Facilities Revenue:
5,960,000 (Martha Franks Baptist Center
Project), Wachovia Bank,
Columbia LOC,
3.450% 04/01/19+............... 5,960,000
3,400,000 (Specialty Equipment Companies
Project), AMT, Barclays Bank
Plc LOC,
3.650% 11/01/10+............... 3,400,000
10,000,000 University of South Carolina,
Athletic Facilities Revenue,
Bond Anticipation Notes,
3.200% 02/28/97................ 10,000,838
--------------
44,430,796
--------------
TENNESSEE -- 2.5%
2,600,000 Chattanooga, Tennessee,
Industrial Development Board,
(Warehouse Row Limited
Project), Credit Suisse LOC,
3.400% 12/15/12+............... 2,600,000
6,969,000 Cumberland (County of),
Tennessee, Industrial
Development Board, Industrial
Development Revenue,
(Crossville Ceramics Company
Project), American National
Bank & Trust Company LOC,
3.400% 01/01/00+............... 6,969,000
Jackson (County of), Tennessee,
Industrial Development Board,
(Essette Project), Bank of
America, Illinois LOC:
2,300,000 Series A,
3.400% 08/01/00+............... 2,300,000
5,300,000 Series B,
3.950% 08/01/15++.............. 5,300,000
13,150,000 Metropolitan Government of
Nashville & Davidson (Counties
of), Tennessee, Health and
Educational Facilities Board,
(Vanderbilt University),
3.500% 01/15/97#............... 13,164,845
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$ 3,245,000 Shelby (County of), Tennessee,
Health Educational & Housing
Facilities Board, Multi-family
Housing Revenue, (Flag Manor),
AMT, Federal Home Loan Bank,
Indianapolis LOC,
3.600% 01/01/23+............... $ 3,245,000
1,900,000 Springfield, Tennessee,
Industrial Development Board,
(All American Homes of
Tennessee Project), First
National Bank of Chicago LOC,
3.700% 11/15/09+............... 1,900,000
--------------
35,478,845
--------------
TEXAS -- 7.4%
4,000,000 Bexar (County of), Texas, (Army
Retirement), Series 85-B,
Rabobank Nederland LOC,
3.300% 07/01/11+............... 4,000,000
1,000,000 Brazos River, Texas, Higher
Educational Authority,
(Hoffman-Laroche), Bankers
Trust Company LOC,
3.550% 04/01/02+............... 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#............... 2,002,389
Harris (County of), Texas:
5,750,000 Health Facilities Revenue,
Development Corporation
Hospital Revenue, (St. Luke's
Episcopal Hospital), Series A,
3.850% 02/15/21++.............. 5,750,000
10,500,000 Toll Road, Unlimited Tax,
Series G,
3.300% 08/01/20+............... 10,500,000
5,800,000 Montgomery (County of), Texas,
Industrial Development
Corporation, (Houston Area
Research Center Project),
Morgan Guaranty Trust
Company, New York LOC,
3.300% 12/01/15+............... 5,800,000
11,100,000 North Central Texas, Health
Facilities Development
Corporation, Series B,
(Methodist Hospital, Dallas
Project), MBIA Insured,
Chemical Bank SBPA, 3.950%
10/01/15++..................... 11,100,000
2,600,000 Sulphur Springs, Texas,
Industrial Development
Authority, (Hon Industrial Inc.
Project), Credit Suisse LOC,
3.400% 12/01/13+............... 2,600,000
15,115,000 Texas (State of), Municipal Power
Agency Revenue, Pre-refunded at
100%,
14.625% 03/01/97............... 16,591,947
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 20
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$35,000,000 Texas (State of), Tax and Revenue
Anticipation Notes, Series A,
4.750% 08/30/96................ $ 35,094,895
10,700,000 West Side Calhoun (County of),
Texas, (Sohio Chemical
Company Project),
3.850% 12/01/15++.............. 10,700,000
--------------
105,139,231
--------------
UTAH -- 0.9%
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,
3.550% 09/01/14+............... 3,200,000
3,500,000 Salt Lake (County of), Utah,
Industrial Development
Authority, (Technologies Inc.
Project), AMT, National
Australia Bank Ltd. LOC,
3.600% 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,
3.950% 12/01/11++.............. 1,200,000
--------------
12,100,000
--------------
VIRGINIA -- 1.1%
2,000,000 Botetourt (County of), Virginia,
Industrial Development
Authority, (Emkay Holdings LLC
Project), AMT, State Street
Bank & Trust Company LOC,
3.400% 10/01/05+............... 2,000,000
2,500,000 Colonial Heights, Virginia,
Industrial Development
Authority, (Philip Morris
Company Project),
3.450% 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,
3.550% 10/01/06+............... 3,900,000
3,400,000 Roanoke, Virginia, Industrial
Development Authority, Hospital
Revenue, (Roanoke Memorial
Hospital Project), Series C,
3.600% 07/01/19+............... 3,400,000
2,000,000 Spotsylvania (County of),
Virginia, Industrial
Development Revenue, (Carlisle
Corporation Project), Trust
Company Bank LOC,
3.450% 06/01/08+............... 2,000,000
1,575,000 Winchester, Virginia, Industrial
Development Authority,
(Midwestco Filter), AMT, Harris
Trust & Savings Bank LOC,
3.750% 08/01/07+............... 1,575,000
--------------
15,375,000
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 3.4%
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,
3.400% 10/01/20+............... 3,000,000
Washington (State of), GO,
Landesbank Hessen SBPA:
20,000,000 Series 96A,
3.300% 06/01/20+............... 20,000,000
10,000,000 Series 96B,
3.300% 06/01/20+............... 10,000,000
7,075,000 Washington (State of), Housing
Finance Authority, Multi-family
Mortgage Revenue, (Inglenook
Court Project), AMT, Bank of
America LOC,
4.000% 07/01/25++.............. 7,075,000
3,000,000 Washington (State of), Student
Loan Finance Association,
Series B, AMT, National
Westminster Bank Plc LOC,
3.400% 01/01/04+............... 3,000,000
--------------
48,575,000
--------------
WEST VIRGINIA -- 2.4%
10,000,000 Fayette (County of), West
Virginia, County Commission,
Solid Waste Disposal Facilities
Revenue, (Georgia Pacific
Corporation Project), AMT,
Industrial Bank of Japan Ltd.
LOC,
3.700% 05/01/18+............... 10,000,000
23,580,000 West Virginia (State of),
Hospital Finance Authority,
Hospital Revenue, (St. Mary's
Hospital Project), Bank One
LOC,
3.500% 10/01/12+............... 23,580,000
--------------
33,580,000
--------------
WISCONSIN -- 2.4%
4,000,000 Janesville, Wisconsin, School
District, Tax and Revenue
Anticipation Notes,
4.250% 09/25/96................ 4,004,634
4,000,000 Menomonee Falls, Wisconsin,
Industrial Development
Authority Revenue, (Jemma LLC
Project), AMT, Bank One,
Milwaukee LOC,
3.650% 09/01/14+............... 4,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 21
NATIONS FUND
Nations Tax Exempt Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WISCONSIN -- (CONTINUED)
$ 2,500,000 Pleasant Prairie, Wisconsin,
Industrial Development
Authority Revenue, (Nucon
Corporation Project), AMT,
American National Bank & Trust
Company, Chicago LOC,
3.600% 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................ 5,509,346
18,520,000 Wisconsin (State of), Health
Facilities Authority,
(Daughters of Charity),
3.400% 11/01/16+............... 18,520,000
--------------
34,533,980
--------------
WYOMING -- 0.2%
3,000,000 Sweetwater (County of), Wyoming,
PCR, (Pacific Corporation
Project), Series A, Credit
Suisse LOC,
3.400% 07/01/15+............... 3,000,000
--------------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $1,408,362,371).......... 1,408,362,371
==============
<CAPTION>
SHARES
- ----------
<C> <S> <C>
MONEY MARKET FUNDS -- 0.1%
800,000 AIM Tax-Exempt Fund.............. 800,000
200,000 Fidelity Institutional Tax-Exempt
Cash Fund...................... 200,000
--------------
TOTAL MONEY
MARKET FUNDS
(Cost $1,000,000).............. 1,000,000
==============
</TABLE>
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $1,409,362,371*).............. 99.5% $1,409,362,371
OTHER ASSETS AND
LIABILITIES (NET)................... 0.5 6,844,897
---- --------------
NET ASSETS............................ 100.0% $1,416,207,268
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** When-issued security (Note 1).
+ Variable rate demand notes payable upon not more than seven calendar days'
notice. The interest rate shown reflects the rate in effect at March 31,
1996.
++ Variable rate demand notes payable upon not more than one calendar day's
notice. The interest rate shown reflects the rate in effect at March 31,
1996.
+++ Variable rate demand notes payable upon not more than thirty calendar days'
notice. The interest rate shown reflects the rate in effect at March 31,
1996.
# Put date.
Nations Tax Exempt Fund had the following industry concentrations greater than
10% at March 31, 1996 (as a percentage of net assets):
<TABLE>
<S> <C>
Hospital Revenue 18.7%
Housing Revenue 11.6
</TABLE>
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CFC Cooperative Finance Corporation
FGIC Federal Guaranty Investment Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 22
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 1996
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND FUND FUND FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------
ASSETS:
Investments, at value. See accompanying schedules (Note 1)
Securities................................................ $4,065,719,905 $481,482,651 $ 877,849,848 $1,409,362,371
Repurchase agreements..................................... -- -- 2,149,756,000 --
-------------- ------------ -------------- --------------
Total investments....................................... 4,065,719,905 481,482,651 3,027,605,848 1,409,362,371
Cash........................................................ 537 118 331 --
Interest receivable......................................... 20,687,517 1,772,352 6,096,289 9,290,284
Dividends receivable........................................ 193,742 9,453 249,994 16,551
Receivable for Fund shares sold............................. 14,942,336 203,425 665,124 1,107,534
Receivable for investment securities sold................... 24,002,400 -- -- 6,725,000
Prepaid expenses and other assets........................... 253,243 4,612 80,591 12,948
-------------- ------------ -------------- --------------
Total Assets.............................................. 4,125,799,680 483,472,611 3,034,698,177 1,426,514,688
-------------- ------------ -------------- --------------
LIABILITIES:
Payable for reverse repurchase agreements (Note 1).......... -- -- 531,756,000 --
Payable for Fund shares redeemed............................ 9,822,677 167,462 307,001 1,638,430
Payable for investment securities purchased................. -- -- -- 5,004,550
Investment advisory fee payable (Note 2).................... 497,227 46,250 283,180 160,338
Administration fee payable (Note 2)......................... 355,161 42,045 209,763 123,336
Shareholder servicing and distribution fees payable (Note
3)........................................................ 437,614 34,826 365,487 62,477
Transfer agent fees payable (Note 2)........................ 170,663 17,636 103,046 59,390
Custodian fees payable (Note 2)............................. 43,910 6,046 31,141 15,683
Dividends payable........................................... 12,400,682 1,679,297 9,632,882 3,027,239
Due to custodian............................................ -- -- -- 74,978
Accrued Trustees'/Directors' fees and expenses (Note 2)..... 80,626 10,645 55,752 31,370
Accrued expenses and other payables......................... 217,759 24,181 18,075 109,629
-------------- ------------ -------------- --------------
Total Liabilities......................................... 24,026,319 2,028,388 542,762,327 10,307,420
-------------- ------------ -------------- --------------
NET ASSETS.................................................. $4,101,773,361 $481,444,223 $2,491,935,850 $1,416,207,268
============== ============ ============== ==============
Investments, at cost........................................ $4,065,719,905 $481,482,651 $3,027,605,848 $1,409,362,371
============== ============ ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 23
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) MARCH 31, 1996
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND FUND FUND FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------
NET ASSETS CONSIST OF:
Undistributed net investment income......................... $ -- $ 13,157 $ 10,103 $ 5,737
Accumulated net realized loss on investments sold........... (469,985) (62,908 ) (56,954) (68,933)
Paid-in capital............................................. 4,102,243,346 481,493,974 2,491,982,701 1,416,270,464
-------------- ------------ -------------- --------------
$4,101,773,361 $481,444,223 $2,491,935,850 $1,416,207,268
============== ============ ============== ==============
NET ASSETS:
Primary A Shares (formerly Trust A Shares).................. $2,472,468,796 $336,771,168 $ 821,030,346 $1,078,764,367
============== ============ ============== ==============
Primary B Shares (formerly Trust B Shares).................. $ 96,305,208 $31,580,841 $ 47,487,855 $ 9,370,273
============== ============ ============== ==============
Investor A Shares........................................... $1,099,490,217 $48,742,499 $ 89,584,453 $ 128,413,695
============== ============ ============== ==============
Investor B Shares........................................... $ 358,646,420 $62,617,025 $1,525,047,873 $ 132,913,846
============== ============ ============== ==============
Investor C Shares........................................... $ 74,822,250 $ 1,730,573 $ 8,783,210 $ 66,743,020
============== ============ ============== ==============
Investor D Shares........................................... $ 40,470 $ 2,117 $ 2,113 $ 2,067
============== ============ ============== ==============
SHARES OUTSTANDING:
Primary A Shares (formerly Trust A Shares).................. 2,472,744,594 336,805,970 821,031,279 1,078,812,905
============== ============ ============== ==============
Primary B Shares (formerly Trust B Shares).................. 96,315,951 31,584,104 47,487,909 9,370,694
============== ============ ============== ==============
Investor A Shares........................................... 1,099,612,862 48,747,536 89,584,555 128,419,473
============== ============ ============== ==============
Investor B Shares........................................... 358,686,426 62,623,496 1,525,049,608 132,919,827
============== ============ ============== ==============
Investor C Shares........................................... 74,830,596 1,730,751 8,783,220 66,746,023
============== ============ ============== ==============
Investor D Shares........................................... 40,474 2,117 2,113 2,067
============== ============ ============== ==============
PRIMARY A SHARES (formerly Trust A Shares):
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
==== ===== ==== ====
PRIMARY B SHARES (formerly Trust B Shares):
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
==== ===== ==== ====
INVESTOR A SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
==== ===== ==== ====
INVESTOR B SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
==== ===== ==== ====
INVESTOR C SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
==== ===== ==== ====
INVESTOR D SHARES:
Net asset value, offering and redemption price per share.... $1.00 $1.00 $1.00 $1.00
==== ===== ==== ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 24
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND(a) FUND(b) FUND(a) FUND(b)
<S> <C> <C> <C> <C>
------------------------------------------------------
INVESTMENT INCOME:
Interest........................................................... $201,289,459 $8,670,527 $140,016,486 $16,780,696
Dividends.......................................................... 3,748,827 93,561 3,293,056 113,412
------------ ---------- ------------ -----------
Total investment income........................................ 205,038,286 8,764,088 143,309,542 16,894,108
------------ ---------- ------------ -----------
EXPENSES:
Investment advisory fee (Note 2)................................... 6,991,713 637,937 4,970,249 1,849,869
Administration fee (Note 2)........................................ 3,461,774 159,290 2,532,203 461,908
Transfer agent fees (Note 2)....................................... 678,919 36,013 540,362 110,324
Custodian fees (Note 2)............................................ 458,562 23,704 375,312 62,603
Legal and audit fees............................................... 421,036 18,813 322,823 42,034
Trustees'/Directors' fees and expenses (Note 2).................... 95,153 9,262 66,284 27,637
Other.............................................................. 610,337 55,143 272,129 135,414
------------ ---------- ------------ -----------
Subtotal....................................................... 12,717,494 940,162 9,079,362 2,689,789
Shareholder servicing and distribution fees (Note 3):
Primary B Shares................................................. 238,205 22,976 120,671 9,393
Investor A Shares................................................ 2,650,539 57,594 345,210 107,677
Investor B Shares................................................ 610,503 44,850 1,321,457 90,152
Investor C Shares................................................ 139,569 1,895 16,663 27,501
Investor D Shares................................................ 143 3 6 3
Fees waived by investment adviser and administrator(s) (Note 2).... (2,263,520) (462,071) (1,679,816) (1,301,580 )
------------ ---------- ------------ -----------
Total expenses................................................. 14,092,933 605,409 9,203,553 1,622,935
------------ ---------- ------------ -----------
NET INVESTMENT INCOME.............................................. 190,945,353 8,158,679 134,105,989 15,271,173
------------ ---------- ------------ -----------
NET REALIZED LOSS ON INVESTMENTS (NOTE 1).......................... (42,433) (1,658) (46,919) --
------------ ---------- ------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $190,902,920 $8,157,021 $134,059,070 $15,271,173
============ ========== ============ ===========
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31. The numbers reflected are for the period June 1, 1995 through March
31, 1996.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30. The numbers reflected are for the period December 1, 1995
through March 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 25
NATIONS FUND
Nations Treasury Fund
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 1996
<TABLE>
<S> <C> <C>
Cash flows from operating and investing activities:
Investment income received..................................................... $ 107,246,869
Payment of operating expenses.................................................. (8,765,915)
Net purchases and sales of short-term investments.............................. 791,136,309
----------------
Cash provided by operating and investing activities.............................. $ 889,617,263
Cash flows from financing activities:
Proceeds from shares sold...................................................... 11,903,821,019
Payment for shares redeemed.................................................... (12,539,695,258)
Cash used from reverse repurchase agreement.................................... (124,189,000)
Distributions paid*............................................................ (131,407,529)
----------------
Cash used by financing activities................................................ (891,470,768)
------------
Decrease in cash................................................................. (1,853,505)
Cash at beginning of period...................................................... 1,853,836
------------
Cash at end of period............................................................ $ 331
=============
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH PROVIDED BY
OPERATING ACTIVITIES:
Net increase in net assets resulting from operations............................. $ 134,059,070
Decrease in investments........................................................ $ 757,689,388
Increase in interest and dividends receivable.................................. (2,568,833)
Decrease in other assets....................................................... 70,848
Increase in accrued expenses................................................... 366,790
----------------
Cash provided by operating activities............................................ $ 889,617,263
=============
</TABLE>
- ---------------
* Non-cash activities include reinvestment of dividends of $7,450,012.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 26
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND(a) FUND(b) FUND(a) FUND(b)
<S> <C> <C> <C> <C>
-------------- ----------------------------------------------
Net investment income................................. $ 190,945,353 $ 8,158,679 $ 134,105,989 $ 15,271,173
Net realized loss on investments...................... (42,433) (1,658 ) (46,919) --
-------------- ------------ -------------- --------------
Net increase in net assets resulting from
operations.......................................... 190,902,920 8,157,021 134,059,070 15,271,173
Distributions to shareholders from net investment
income:
Primary A Shares.................................... (130,059,809) (5,993,420 ) (99,400,052) (11,805,259)
Primary B Shares.................................... (5,121,793) (454,644 ) (2,534,994) (116,636)
Investor A Shares................................... (39,740,146) (787,770 ) (5,129,970) (1,347,117)
Investor B Shares................................... (13,005,667) (882,980 ) (26,681,463) (1,418,100)
Investor C Shares................................... (3,015,901) (39,832 ) (350,433) (584,042)
Investor D Shares................................... (2,037) (33 ) (83) (19)
Distributions to shareholders from net realized gain
on investments:
Primary A Shares.................................... -- -- (6,502) --
Primary B Shares.................................... -- -- (176) --
Investor A Shares................................... -- -- (362) --
Investor B Shares................................... -- -- (1,930) --
Investor C Shares................................... -- -- (24) --
Investor D Shares................................... -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares.................................... (400,652,057) 3,872,972 (2,075,795,502) 173,638,492
Primary B Shares.................................... (29,817,441) 4,458,845 (9,326,431) (2,296,026)
Investor A Shares................................... 401,182,199 22,569,043 (17,889,209) 2,205,180
Investor B Shares................................... 141,690,333 35,541,203 1,472,486,586 46,541,215
Investor C Shares................................... 21,373,710 (2,683,604 ) 2,410,143 25,335,079
Investor D Shares................................... 38,442 32 82 18
-------------- ------------ -------------- --------------
Net increase/(decrease) in net assets................. 133,772,753 63,756,833 (628,161,250) 245,423,958
NET ASSETS:
Beginning of period................................... 3,968,000,608 417,687,390 3,120,097,100 1,170,783,310
-------------- ------------ -------------- --------------
End of period......................................... $4,101,773,361 $481,444,223 $ 2,491,935,850 $1,416,207,268
============== ============ =============== ==============
Undistributed net investment income at end of
period.............................................. $ -- $ 13,157 $ 10,103 $ 5,737
============== ============ =============== ==============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31. The numbers reflected are for the period June 1, 1995 through March
31, 1996.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30. The numbers reflected are for the period December 1, 1995
through March 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 27
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED MAY 31, 1995 AND NOVEMBER 30, 1995
<TABLE>
<CAPTION>
NATIONS
NATIONS GOVERNMENT NATIONS NATIONS
PRIME MONEY MARKET TREASURY TAX EXEMPT
FUND(a) FUND(b) FUND(a) FUND(b)
<S> <C> <C> <C> <C>
-------------- ---------------------------------------------
Net investment income.................................. $ 190,185,080 $ 28,532,463 $ 147,953,000 $ 41,211,194
Net realized gain/(loss) on investments................ 1,780 (58,645) 32 (29,615)
-------------- ------------ -------------- --------------
Net increase in net assets resulting from operations... 190,186,860 28,473,818 147,953,032 41,181,579
Distributions to shareholders from net investment
income:
Primary A Shares..................................... (148,958,819) (22,596,106) (139,757,883) (33,277,204)
Primary B Shares..................................... (5,136,504) (3,756,089) (2,557,073) (703,449)
Investor A Shares.................................... (29,631,302) (981,076) (4,431,540) (4,403,343)
Investor B Shares.................................... (5,028,843) (1,144,233) (1,089,257) (1,858,523)
Investor C Shares.................................... (1,429,580) (54,874) (116,108) (968,626)
Investor D Shares.................................... (32) (85) (30) (49)
Distributions to shareholders from net realized gain on
investments:
Primary A Shares..................................... -- -- (1,048) --
Primary B Shares..................................... -- -- (19) --
Investor A Shares.................................... -- -- (33) --
Investor B Shares.................................... -- -- (8) --
Investor C Shares.................................... -- -- (1) --
Investor D Shares.................................... -- -- -- --
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares..................................... (10,718,867) (99,787,328) 216,878,016 84,469,697
Primary B Shares..................................... 126,133,392 (45,620,209) 56,814,340 (6,540,627)
Investor A Shares.................................... 186,535,070 6,005,670 33,280,029 (25,504,325)
Investor B Shares.................................... 216,994,080 15,127,455 52,561,009 86,375,841
Investor C Shares.................................... 51,975,852 3,938,630 6,181,912 15,706,100
Investor D Shares.................................... 2,032 2,085 2,031 2,049
-------------- ------------ -------------- --------------
Net increase/(decrease) in net assets.................. 570,923,339 (120,392,342) 365,717,369 154,479,120
NET ASSETS:
Beginning of year...................................... 3,397,077,269 538,079,732 2,754,379,731 1,016,304,190
-------------- ------------ -------------- --------------
End of year............................................ $3,968,000,608 $417,687,390 $3,120,097,100 $1,170,783,310
============== ============ ============== ==============
Undistributed net investment income at end of year..... $ -- $ 13,157 $ 1,109 $ 5,737
============== ============ ============== ==============
</TABLE>
- ---------------
(a) Nations Prime Fund and Nations Treasury Fund reflect information for year
ended May 31, 1995.
(b) Nations Government Money Market Fund and Nations Tax Exempt Fund reflect
information for the year ended November 30, 1995.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 28
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown below for such transactions.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT
NATIONS PRIME FUND MONEY MARKET FUND
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 1996(a) MAY 31, 1995 MARCH 31, 1996(b) NOVEMBER 30, 1995
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................... $ 2,343,459,930 $ 4,179,031,181 $ 219,823,787 $ 546,778,557
Issued as reinvestment of
dividends........................ 486,972 -- -- --
Redeemed........................... (2,744,598,959) (4,189,750,048) (215,950,815) (646,565,885)
--------------- --------------- ------------- -------------
Net increase/(decrease)............ $ (400,652,057) $ (10,718,867) $ 3,872,972 $ (99,787,328)
================ =============== ============== ==============
<CAPTION>
PERIOD ENDED
MAY 31, 1995*
<S> <C> <C> <C> <C>
------------
PRIMARY B SHARES:
Sold............................... $ 363,309,249 $ 472,671,842 $ 46,099,378 $ 248,116,349
Redeemed........................... (393,126,690) (346,538,450) (41,640,533) (293,736,558)
-------------- -------------- -------------- --------------
Net increase/(decrease)............ $ (29,817,441) $ 126,133,392 $ 4,458,845 $ (45,620,209)
================ =============== ============== ==============
<CAPTION>
YEAR ENDED
MAY 31, 1995
<S> <C> <C> <C> <C>
-----------
INVESTOR A SHARES:
Sold............................... $ 3,357,983,129 $ 4,055,956,632 $ 60,796,659 $ 84,766,539
Issued as reinvestment of
dividends........................ 37,851,418 27,595,453 766,444 922,078
Redeemed........................... (2,994,652,348) (3,897,017,015) (38,994,060) (79,682,947)
--------------- --------------- ------------- -------------
Net increase....................... $ 401,182,199 $ 186,535,070 $ 22,569,043 $ 6,005,670
================ =============== ============== ==============
INVESTOR B SHARES:
Sold............................... $ 1,738,995,404 $ 1,233,942,079 $ 111,579,007 $ 117,437,216
Issued as reinvestment of
dividends........................ 9,673,991 4,499,801 617,266 1,131,826
Redeemed........................... (1,606,979,062) (1,021,447,800) (76,655,070) (103,441,587)
--------------- --------------- ------------- -------------
Net increase....................... $ 141,690,333 $ 216,994,080 $ 35,541,203 $ 15,127,455
================ =============== ============== ==============
INVESTOR C SHARES:
Sold............................... $ 190,895,727 $ 145,963,264 $ 1,909,288 $ 6,062,737
Issued as reinvestment of
dividends........................ 2,613,240 1,371,960 38,740 51,949
Redeemed........................... (172,135,257) (95,359,372) (4,631,632) (2,176,056)
--------------- --------------- ------------- -------------
Net increase/(decrease)............ $ 21,373,710 $ 51,975,852 $ (2,683,604) $ 3,938,630
================ =============== ============== ==============
<CAPTION>
PERIOD ENDED PERIOD ENDED
MAY 31, 1995* NOVEMBER 30, 1995**
<S> <C> <C> <C> <C>
------------ -----------------
INVESTOR D SHARES:
Sold............................... $ 92,585 $ 2,000 $ -- $ 2,000
Issued as reinvestment of
dividends........................ 2,069 32 32 85
Redeemed........................... (56,212) -- -- --
--------------- --------------- ------------- -------------
Net increase....................... $ 38,442 $ 2,032 $ 32 $ 2,085
================ =============== ============== ==============
</TABLE>
- ---------------
* Nations Prime Fund's Primary B and Investor D Shares commenced operations on
June 16, 1994 and February 9, 1995, respectively.
** Nations Government Money Market Fund's Investor D Shares commenced
operations on February 10, 1995.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 29
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS TREASURY FUND NATIONS TAX EXEMPT FUND
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 1996 (a) MAY 31, 1995 MARCH 31, 1996 (b) NOVEMBER 30, 1995
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................... $ 4,227,193,042 $ 8,214,697,040 $ 561,383,700 $ 1,141,750,545
Issued as reinvestment of
dividends........................ 10,474 15,712 -- --
Redeemed........................... (6,302,999,018) (7,997,834,736) (387,745,208) (1,057,280,848)
---------------- --------------- ------------- ---------------
Net increase/(decrease)............ $ (2,075,795,502) $ 216,878,016 $ 173,638,492 $ 84,469,697
================ =============== ============== ===============
<CAPTION>
PERIOD ENDED
MAY 31, 1995*
<S> <C> <C> <C> <C>
------------
PRIMARY B SHARES:
Sold............................... $ 250,262,684 $ 274,967,675 $ 14,219,439 $ 53,653,303
Redeemed........................... (259,589,115) (218,153,335) (16,515,465) (60,193,930)
---------------- --------------- ------------- ---------------
Net increase/(decrease)............ $ (9,326,431) $ 56,814,340 $ (2,296,026) $ (6,540,627)
================ =============== ============== ===============
<CAPTION>
YEAR ENDED
MAY 31, 1995
<S> <C> <C> <C> <C>
-----------
INVESTOR A SHARES:
Sold............................... $ 355,900,666 $ 1,790,095,545 $ 116,297,792 $ 429,163,995
Issued as reinvestment of
dividends........................ 4,759,978 4,030,399 1,294,655 4,080,291
Redeemed........................... (378,549,853) (1,760,845,915) (115,387,267) (458,748,611)
---------------- --------------- ------------- ---------------
Net increase/(decrease)............ $ (17,889,209) $ 33,280,029 $ 2,205,180 $ (25,504,325)
================ =============== ============== ===============
INVESTOR B SHARES:
Sold............................... $ 7,051,467,524 $ 1,115,379,304 $ 271,059,312 $ 232,917,465
Issued as reinvestment of
dividends........................ 2,333,486 923,681 831,949 1,792,007
Redeemed........................... (5,581,314,424) (1,063,741,976) (225,350,046) (148,333,631)
---------------- --------------- ------------- ---------------
Net increase....................... $ 1,472,486,586 $ 52,561,009 $ 46,541,215 $ 86,375,841
================ =============== ============== ===============
INVESTOR C SHARES:
Sold............................... $ 18,619,338 $ 10,389,850 $ 70,804,287 $ 110,742,435
Issued as reinvestment of
dividends........................ 345,992 114,263 569,704 955,874
Redeemed........................... (16,555,187) (4,322,201) (46,038,912) (95,992,209)
---------------- --------------- ------------- ---------------
Net increase....................... $ 2,410,143 $ 6,181,912 $ 25,335,079 $ 15,706,100
================ =============== ============== ===============
<CAPTION>
PERIOD ENDED PERIOD ENDED
MAY 31, 1995* NOVEMBER 30, 1995**
<S> <C> <C> <C> <C>
------------ -----------------
INVESTOR D SHARES:
Sold............................... $ -- $ 2,000 $ -- $ 2,000
Issued as reinvestment of
dividends........................ 82 31 18 49
---------------- --------------- ------------- ---------------
Net increase....................... $ 82 $ 2,031 $ 18 $ 2,049
================ =============== ============== ===============
</TABLE>
- ---------------
* Nations Treasury Fund's Primary B and Investor D Shares commenced operations
on June 16, 1994 and February 9, 1995, respectively.
** Nations Tax Exempt Fund's Investor D Shares commenced operations on February
10, 1995.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET NET
ASSET TOTAL ASSET
VALUE DIVIDENDS FROM DIVIDENDS VALUE
BEGINNING OF NET INVESTMENT NET INVESTMENT AND END OF
PERIOD INCOME INCOME DISTRIBUTIONS PERIOD
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS PRIME FUND
PRIMARY A SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0468 $(0.0468) $ (0.0468) $1.00
Year ended 05/31/1995......................... 1.00 0.0519 (0.0519) (0.0519) 1.00
Year ended 05/31/1994......................... 1.00 0.0318 (0.0318) (0.0318) 1.00
Year ended 05/31/1993......................... 1.00 0.0328 (0.0328) (0.0328) 1.00
Year ended 05/31/1992......................... 1.00 0.0506 (0.0506) (0.0506) 1.00
Year ended 05/31/1991......................... 1.00 0.0749 (0.0749) (0.0749) 1.00
Year ended 05/31/1990......................... 1.00 0.0855 (0.0855) (0.0855) 1.00
Year ended 05/31/1989......................... 1.00 0.0839 (0.0839) (0.0839) 1.00
Year ended 05/31/1988......................... 1.00 0.0675 (0.0675) (0.0675) 1.00
Period ended 05/31/1987*...................... 1.00 0.0277 (0.0277) (0.0277) 1.00
PRIMARY B SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0447 $(0.0447) $ (0.0447) $1.00
Period ended 05/31/1995*...................... 1.00 0.0474 (0.0474) (0.0474) 1.00
INVESTOR A SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0438 $(0.0438) $ (0.0438) $1.00
Year ended 05/31/1995......................... 1.00 0.0475 (0.0475) (0.0475) 1.00
Year ended 05/31/1994......................... 1.00 0.0283 (0.0283) (0.0283) 1.00
Year ended 05/31/1993......................... 1.00 0.0293 (0.0293) (0.0293) 1.00
Year ended 05/31/1992......................... 1.00 0.0470 (0.0470) (0.0470) 1.00
Period ended 05/31/1991*...................... 1.00 0.0617 (0.0617) (0.0617) 1.00
INVESTOR B SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0447 $(0.0447) $ (0.0447) $1.00
Year ended 05/31/1995......................... 1.00 0.0493 (0.0493) (0.0493) 1.00
Period ended 05/31/1994*...................... 1.00 0.0015 (0.0015) (0.0015) 1.00
INVESTOR C SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0447 $(0.0447) $ (0.0447) $1.00
Year ended 05/31/1995......................... 1.00 0.0493 (0.0493) (0.0493) 1.00
Period ended 05/31/1994*...................... 1.00 0.0155 (0.0155) (0.0155) 1.00
INVESTOR D SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0439 $(0.0439) $ (0.0439) $1.00
Period ended 05/31/1995*...................... 1.00 0.0173 (0.0173) (0.0173) 1.00
</TABLE>
- ---------------
* Nations Prime Fund's Primary A, Primary B, Investor A, Investor B, Investor
C and Investor D Shares commenced operations on December 15, 1986, June 16,
1994, July 16, 1990, May 11, 1994, November 26, 1993, and February 9, 1995,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
RETURN++ (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS PRIME FUND
PRIMARY A SHARES
Period ended 03/31/1996(a)...... 4.79% $2,472,469 0.30%+ 5.62%+ 0.37%+ $ 0.0463
Year ended 05/31/1995........... 5.32 2,873,096 0.30 5.23 0.38 0.0511
Year ended 05/31/1994........... 3.22 2,883,762 0.30 3.20 0.37 0.0311
Year ended 05/31/1993........... 3.33 1,156,266 0.30 3.25 0.36 0.0322
Year ended 05/31/1992........... 5.19+++ 500,476 0.30 5.03 0.42 0.0494
Year ended 05/31/1991........... 7.75+++ 574,993 0.30 7.47 0.44 0.0735
Year ended 05/31/1990........... 8.88+++ 433,298 0.32 8.43 0.50+++ 0.0731+++
Year ended 05/31/1989........... 8.71+++ 115,295 0.35 8.11 0.55+++ 0.0819+++
Year ended 05/31/1988........... 6.94+++ 264,063 0.36 6.73 0.56+++ 0.0655+++
Period ended 05/31/1987*........ 2.79+++ 252,562 0.35+ 5.99+ 0.65+/+++ 0.0247+++
PRIMARY B SHARES
Period ended 03/31/1996(a)...... 4.57% $ 96,305 0.55%+ 5.37%+ 0.62%+ $ 0.0442
Period ended 05/31/1995*........ 4.84 126,120 0.55+ 4.98+ 0.63+ 0.0466
INVESTOR A SHARES
Period ended 03/31/1996(a)...... 4.48% $1,099,490 0.65%+ 5.27%+ 0.72%+ $ 0.0433
Year ended 05/31/1995........... 4.85 698,358 0.75 4.78 0.83 0.0467
Year ended 05/31/1994........... 2.86 511,833 0.65 2.85 0.72 0.0276
Year ended 05/31/1993........... 2.97 306,376 0.65 2.90 0.71 0.0287
Year ended 05/31/1992........... 4.81+++ 281,101 0.65 4.67 0.77 0.0458
Period ended 05/31/1991*........ 7.31+++ 144,202 0.65+ 6.69+ 0.79+ 0.0603
INVESTOR B SHARES
Period ended 03/31/1996(a)...... 4.57% $ 358,646 0.55%+ 5.37%+ 0.62%+ $ 0.0442
Year ended 05/31/1995........... 5.03 216,973 0.56 4.97 0.64 0.0485
Period ended 05/31/1994*........ 0.15 2 0.55+ 2.95+ 0.62+ 0.0015
INVESTOR C SHARES
Period ended 03/31/1996(a)...... 4.57% $ 74,822 0.55%+ 5.37%+ 0.62%+ $ 0.0442
Year ended 05/31/1995........... 5.03 53,451 0.56 4.97 0.64 0.0485
Period ended 05/31/1994*........ 1.58 1,481 0.55+ 2.95+ 0.62+ 0.0151
INVESTOR D SHARES
Period ended 03/31/1996(a)...... 4.49% $ 40 0.67%+ 5.25%+ 0.74%+ $ 0.0434
Period ended 05/31/1995*........ 1.74 2 0.55+ 4.98+ 0.63+ 0.0165
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 32
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET NET
ASSET DISTRIBUTIONS TOTAL ASSET
VALUE DIVIDENDS FROM FROM DIVIDENDS VALUE
BEGINNING OF NET INVESTMENT NET INVESTMENT NET REALIZED AND END OF
PERIOD INCOME INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS GOVERNMENT MONEY MARKET FUND
PRIMARY A SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0173 $(0.0173) -- $ (0.0173) $1.00
Year ended 11/30/1995................ 1.00 0.0558 (0.0558) -- (0.0558) 1.00
Year ended 11/30/1994................ 1.00 0.0375 (0.0375) $ (0.0000)# (0.0375) 1.00
Year ended 11/30/1993................ 1.00 0.0294 (0.0294) -- (0.0294) 1.00
Year ended 11/30/1992................ 1.00 0.0358 (0.0358) -- (0.0358) 1.00
Period ended 11/30/1991*............. 1.00 0.0571 (0.0571) -- (0.0571) 1.00
PRIMARY B SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0165 $(0.0165) -- $ (0.0165) $1.00
Year ended 11/30/1995................ 1.00 0.0533 (0.0533) -- (0.0533) 1.00
Period ended 11/30/1994*............. 1.00 0.0200 (0.0200) $ (0.0000)# (0.0200) 1.00
INVESTOR A SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0162 $(0.0162) -- $ (0.0162) $1.00
Year ended 11/30/1995................ 1.00 0.0522 (0.0522) -- (0.0522) 1.00
Year ended 11/30/1994................ 1.00 0.0340 (0.0340) $ (0.0000)# (0.0340) 1.00
Year ended 11/30/1993................ 1.00 0.0256 (0.0256) -- (0.0256) 1.00
Year ended 11/30/1992................ 1.00 0.0358 (0.0358) -- (0.0358) 1.00
Period ended 11/30/1991*............. 1.00 0.0571 (0.0571) -- (0.0571) 1.00
INVESTOR B SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0165 $(0.0165) -- $ (0.0165) $1.00
Year ended 11/30/1995................ 1.00 0.0532 (0.0532) -- (0.0532) 1.00
Period ended 11/30/1994*............. 1.00 0.0222 (0.0222) $ (0.0000)# (0.0222) 1.00
INVESTOR C SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0165 $(0.0165) -- $ (0.0165) $1.00
Year ended 11/30/1995................ 1.00 0.0532 (0.0532) -- (0.0532) 1.00
Period ended 11/30/1994*............. 1.00 0.0290 (0.0290) $ (0.0000)# (0.0290) 1.00
INVESTOR D SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0157 $(0.0157) -- $ (0.0157) $1.00
Period ended 11/30/1995*............. 1.00 0.0418 (0.0418) -- (0.0418) 1.00
</TABLE>
- ---------------
* Nations Government Money Market Fund's Primary A, Primary B, Investor A,
Investor B, Investor C and Investor D Shares commenced operations on
December 3, 1990, June 16, 1994, February 11, 1991, May 17, 1994, March 21,
1994 and February 10, 1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.0001 per share.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 33
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
RETURN++ (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS GOVERNMENT MONEY MARKET FUND
PRIMARY A SHARES
Period ended 03/31/1996(a).......... 1.74% $336,771 0.30%+ 5.20%+ 0.59%+ $ 0.0163
Year ended 11/30/1995............... 5.72 332,895 0.30 5.58 0.57 0.0531
Year ended 11/30/1994............... 3.84 432,729 0.30 3.79 0.59 0.0347
Year ended 11/30/1993............... 2.96 475,180 0.30 2.91 0.56 0.0269
Year ended 11/30/1992............... 3.63+++ 414,412 0.42 3.55 0.58 0.0341
Period ended 11/30/1991*............ 5.87+++ 333,979 0.43+ 5.49+ 0.62+ 0.0551
PRIMARY B SHARES
Period ended 03/31/1996(a).......... 1.66% $ 31,581 0.55%+ 4.95%+ 0.84%+ $ 0.0155
Year ended 11/30/1995............... 5.45 27,122 0.55 5.33 0.82 0.0506
Period ended 11/30/1994*............ 2.02 72,747 0.55+ 3.54+ 0.84+ 0.0186
INVESTOR A SHARES
Period ended 03/31/1996(a).......... 1.62% $ 48,742 0.65%+ 4.85%+ 0.94%+ $ 0.0152
Year ended 11/30/1995............... 5.34 26,175 0.65 5.23 0.92 0.0495
Year ended 11/30/1994............... 3.45 20,173 0.65 3.44 0.94 0.0311
Year ended 11/30/1993............... 2.60 10,499 0.61 2.60 0.87 0.0231
Year ended 11/30/1992............... 3.63+++ 13,851 0.42 3.55 0.58 0.0341
Period ended 11/30/1991*............ 5.86+++ 8,949 0.43+ 5.49+ 0.62+ 0.0551
INVESTOR B SHARES
Period ended 03/31/1996(a).......... 1.66% $ 62,617 0.55%+ 4.95%+ 0.84%+ $ 0.0155
Year ended 11/30/1995............... 5.45 27,079 0.55 5.33 0.82 0.0505
Period ended 11/30/1994*............ 2.24 11,955 0.55+ 3.54+ 0.84+ 0.0206
INVESTOR C SHARES
Period ended 03/31/1996(a).......... 1.66% $ 1,731 0.55%+ 4.95%+ 0.84%+ $ 0.0155
Year ended 11/30/1995............... 5.44 4,414 0.55 5.33 0.82 0.0505
Period ended 11/30/1994*............ 2.94 476 0.55+ 3.54+ 0.84+ 0.0268
INVESTOR D SHARES
Period ended 03/31/1996(a).......... 1.58% $ 2 0.71%+ 4.79%+ 1.00%+ $ 0.0147
Period ended 11/30/1995*............ 4.38 2 0.55+ 5.33+ 0.82+ 0.0397
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 34
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET NET
ASSET DISTRIBUTIONS TOTAL ASSET
VALUE DIVIDENDS FROM FROM DIVIDENDS VALUE
BEGINNING OF NET INVESTMENT NET INVESTMENT NET REALIZED AND END OF
PERIOD INCOME INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS TREASURY FUND
PRIMARY A SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0458 $(0.0458) $ (0.0000)# $ (0.0458) $1.00
Year ended 05/31/1995................ 1.00 0.0494 (0.0494) (0.0000)# (0.0494) 1.00
Year ended 05/31/1994................ 1.00 0.0297 (0.0297) -- (0.0297) 1.00
Year ended 05/31/1993................ 1.00 0.0307 (0.0307) -- (0.0307) 1.00
Year ended 05/31/1992................ 1.00 0.0483 (0.0483) -- (0.0483) 1.00
Year ended 05/31/1991................ 1.00 0.0721 (0.0721) -- (0.0721) 1.00
Year ended 05/31/1990................ 1.00 0.0829 (0.0829) -- (0.0829) 1.00
Year ended 05/31/1989................ 1.00 0.0802 (0.0802) -- (0.0802) 1.00
Year ended 05/31/1988................ 1.00 0.0630 (0.0630) -- (0.0630) 1.00
Period ended 05/31/1987*............. 1.00 0.0262 (0.0262) -- (0.0262) 1.00
PRIMARY B SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0437 $(0.0437) $ (0.0000)# $ (0.0437) $1.00
Period ended 05/31/1995*............. 1.00 0.0449 (0.0449) (0.0000)# (0.0449) 1.00
INVESTOR A SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0429 $(0.0429) $ (0.0000)# $ (0.0429) $1.00
Year ended 05/31/1995................ 1.00 0.0457 (0.0457) (0.0000)# (0.0457) 1.00
Year ended 05/31/1994................ 1.00 0.0262 (0.0262) -- (0.0262) 1.00
Year ended 05/31/1993................ 1.00 0.0272 (0.0272) -- (0.0272) 1.00
Year ended 05/31/1992................ 1.00 0.0448 (0.0448) -- (0.0448) 1.00
Period ended 05/31/1991*............. 1.00 0.0592 (0.0592) -- (0.0592) 1.00
INVESTOR B SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0437 $(0.0437) $ (0.0000)# $ (0.0437) $1.00
Year ended 05/31/1995................ 1.00 0.0468 (0.0468) (0.0000)# (0.0468) 1.00
Period ended 05/31/1994*............. 1.00 0.0015 (0.0015) -- (0.0015) 1.00
INVESTOR C SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0437 $(0.0437) $ (0.0000)# $ (0.0437) $1.00
Year ended 05/31/1995................ 1.00 0.0468 (0.0468) (0.0000)# (0.0468) 1.00
Period ended 05/31/1994*............. 1.00 0.0019 (0.0019) -- (0.0019) 1.00
INVESTOR D SHARES
Period ended 03/31/1996(a)........... $ 1.00 $0.0404 $(0.0404) -- $ (0.0404) $1.00
Period ended 05/31/1995*............. 1.00 0.0167 (0.0167) -- (0.0167) 1.00
</TABLE>
- ---------------
* Nations Treasury Fund's Primary A, Primary B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on December 15, 1986,
June 16, 1994, July 16, 1990, May 16, 1994, May 11, 1994 and February 9,
1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.0001.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 35
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
RETURN++ (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS TREASURY FUND
PRIMARY A SHARES
Period ended 03/31/1996(a)..... 4.67% $ 821,030 0.30%+ 5.52%+ 0.37%+ $ 0.0453
Year ended 05/31/1995.......... 5.05 2,896,868 0.30 4.99 0.35 0.0489
Year ended 05/31/1994.......... 2.99 2,679,992 0.30 2.97 0.36 0.0292
Year ended 05/31/1993.......... 3.12 2,956,796 0.30 3.02 0.36 0.0302
Year ended 05/31/1992.......... 4.95+++ 1,094,741 0.29 4.82 0.42 0.0470
Year ended 05/31/1991.......... 7.46+++ 955,186 0.25 7.04 0.43 0.0703
Year ended 05/31/1990.......... 8.61+++ 392,843 0.25 8.18 0.59+++ 0.0693+++
Year ended 05/31/1989.......... 8.33+++ 90,946 0.39 7.93 0.58+++ 0.0783+++
Year ended 05/31/1988.......... 6.49+++ 111,414 0.38 6.31 0.65+++ 0.0603+++
Period ended 05/31/1987*....... 2.64+++ 66,221 0.35+ 5.68+ 0.75+/+++ 0.0222+++
PRIMARY B SHARES
Period ended 03/31/1996(a)..... 4.46% $ 47,488 0.55%+ 5.27%+ 0.62%+ $ 0.0432
Period ended 05/31/1995*....... 4.56 56,815 0.55+ 4.74+ 0.60+ 0.0444
INVESTOR A SHARES
Period ended 03/31/1996(a)..... 4.36% $ 89,584 0.65%+ 5.17%+ 0.72%+ $ 0.0424
Year ended 05/31/1995.......... 4.65 107,475 0.67 4.62 0.72 0.0452
Year ended 05/31/1994.......... 2.67 74,195 0.65 2.62 0.71 0.0257
Year ended 05/31/1993.......... 2.77 105,828 0.65 2.67 0.71 0.0266
Year ended 05/31/1992.......... 4.57+++ 90,917 0.64 4.47 0.76 0.0435
Period ended 05/31/1991*....... 6.98+++ 37,265 0.61+ 6.53+ 0.83+ 0.0570
INVESTOR B SHARES
Period ended 03/31/1996(a)..... 4.46% $1,525,048 0.55%+ 5.27%+ 0.62%+ $ 0.0432
Year ended 05/31/1995.......... 4.76 52,564 0.56 4.73 0.61 0.0463
Period ended 05/31/1994*....... 0.14 2 0.55+ 2.72+ 0.61+ 0.0014
INVESTOR C SHARES
Period ended 03/31/1996(a)..... 4.46% $ 8,783 0.55%+ 5.27%+ 0.62%+ $ 0.0432
Year ended 05/31/1995.......... 4.76 6,373 0.56 4.73 0.61 0.0463
Period ended 05/31/1994*....... 0.19 191 0.55+ 2.72+ 0.61+ 0.0019
INVESTOR D SHARES
Period ended 03/31/1996(a)..... 4.09% $ 2 0.64%+ 5.18%+ 0.71%+ $ 0.0399
Period ended 05/31/1995*....... 1.67 2 0.55+ 4.74+ 0.60+ 0.0162
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 36
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET NET
ASSET TOTAL ASSET
VALUE DIVIDENDS FROM DIVIDENDS VALUE
BEGINNING OF NET INVESTMENT NET INVESTMENT AND END OF
PERIOD INCOME INCOME DISTRIBUTIONS PERIOD
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TAX EXEMPT FUND
PRIMARY A SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0112 $(0.0112) $ (0.0112) $1.00
Year ended 11/30/1995......................... 1.00 0.0361 (0.0361) (0.0361) 1.00
Year ended 11/30/1994......................... 1.00 0.0257 (0.0257) (0.0257) 1.00
Year ended 11/30/1993......................... 1.00 0.0223 (0.0223) (0.0223) 1.00
Year ended 11/30/1992......................... 1.00 0.0267 (0.0267) (0.0267) 1.00
Year ended 11/30/1991......................... 1.00 0.0422 (0.0422) (0.0422) 1.00
Year ended 11/30/1990......................... 1.00 0.0550 (0.0550) (0.0550) 1.00
Year ended 11/30/1989......................... 1.00 0.0600 (0.0600) (0.0600) 1.00
Period ended 11/30/1988*...................... 1.00 0.0350 (0.0350) (0.0350) 1.00
PRIMARY B SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0104 $(0.0104) $ (0.0104) $1.00
Year ended 11/30/1995......................... 1.00 0.0335 (0.0335) (0.0335) 1.00
Period ended 11/30/1994*...................... 1.00 0.0116 (0.0116) (0.0116) 1.00
INVESTOR A SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0104 $(0.0104) $ (0.0104) $1.00
Year ended 11/30/1995......................... 1.00 0.0335 (0.0335) (0.0335) 1.00
Year ended 11/30/1994......................... 1.00 0.0231 (0.0231) (0.0231) 1.00
Year ended 11/30/1993......................... 1.00 0.0198 (0.0198) (0.0198) 1.00
Year ended 11/30/1992......................... 1.00 0.0266 (0.0266) (0.0266) 1.00
Period ended 11/30/1991*...................... 1.00 0.0422 (0.0422) (0.0422) 1.00
INVESTOR B SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0106 $(0.0106) $ (0.0106) $1.00
Year ended 11/30/1995......................... 1.00 0.0342 (0.0342) (0.0342) 1.00
Period ended 11/30/1994*...................... 1.00 0.0141 (0.0141) (0.0141) 1.00
INVESTOR C SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0107 $(0.0107) $ (0.0107) $1.00
Year ended 11/30/1995......................... 1.00 0.0346 (0.0346) (0.0346) 1.00
Period ended 11/30/1994*...................... 1.00 0.0203 (0.0203) (0.0203) 1.00
INVESTOR D SHARES
Period ended 03/31/1996(a).................... $ 1.00 $ 0.0090 $(0.0090) $ (0.0090) $1.00
Period ended 11/30/1995*...................... 1.00 0.0243 (0.0243) (0.0243) 1.00
</TABLE>
- ---------------
* Nations Tax Exempt Fund's Primary A, Primary B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on March 14, 1988,
June 16, 1994, April 5, 1991, May 17, 1994, March 7, 1994 and February 10,
1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 37
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET INCOME
RETURN++ (IN 000'S) ASSETS ASSETS ASSETS PER SHARE
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS TAX EXEMPT FUND
PRIMARY A SHARES
Period ended 03/31/1996(a)..... 1.12% $1,078,764 0.30%+ 3.35%+ 0.58%+ $ 0.0103
Year ended 11/30/1995.......... 3.68 905,125 0.30 3.62 0.57 0.0335
Year ended 11/30/1994.......... 2.60 820,677 0.27 2.59 0.59 0.0226
Year ended 11/30/1993.......... 2.27 701,403 0.23 2.23 0.59 0.0187
Year ended 11/30/1992.......... 2.70+++ 329,265 0.40 2.65 0.57 0.0250
Year ended 11/30/1991.......... 4.31+++ 168,829 0.42 4.23 0.60 0.0404
Year ended 11/30/1990.......... 5.63+++ 173,834 0.40 5.51 0.75 0.0515
Year ended 11/30/1989.......... 6.17+++ 145,109 0.40 6.00 0.74 0.0566
Period ended 11/30/1988*....... 3.55+++ 143,245 0.40+ 4.97+ 0.75+ 0.0325
PRIMARY B SHARES
Period ended 03/31/1996(a)..... 1.04% $ 9,370 0.55%+ 3.10%+ 0.83%+ $ 0.0095
Year ended 11/30/1995.......... 3.39 11,666 0.55 3.37 0.82 0.0309
Period ended 11/30/1994*....... 1.17 18,207 0.52+ 2.34+ 0.84+ 0.0102
INVESTOR A SHARES
Period ended 03/31/1996(a)..... 1.04% $ 128,414 0.55%+ 3.10%+ 0.83%+ $ 0.0095
Year ended 11/30/1995.......... 3.40 126,207 0.55 3.37 0.82 0.0309
Year ended 11/30/1994.......... 2.36 151,714 0.52 2.34 0.84 0.0199
Year ended 11/30/1993.......... 2.00 119,552 0.48 1.98 0.84 0.0162
Year ended 11/30/1992.......... 2.68+++ 80,158 0.55 2.50 0.72 0.0248
Period ended 11/30/1991*....... 4.30+++ 1,690 0.42+ 4.23+ 0.60+ 0.0404
INVESTOR B SHARES
Period ended 03/31/1996(a)..... 1.06% $ 132,914 0.50%+ 3.15%+ 0.78%+ $ 0.0097
Year ended 11/30/1995.......... 3.47 86,374 0.50 3.42 0.77 0.0316
Period ended 11/30/1994*....... 1.43 3 0.47+ 2.39+ 0.79+ 0.0118
INVESTOR C SHARES
Period ended 03/31/1996(a)..... 1.07% $ 66,743 0.45%+ 3.20%+ 0.73%+ $ 0.0098
Year ended 11/30/1995.......... 3.52 41,409 0.45 3.47 0.72 0.0320
Period ended 11/30/1994*....... 2.05 25,704 0.42+ 2.44+ 0.74+ 0.0177
INVESTOR D SHARES
Period ended 03/31/1996(a)..... 0.91% $ 2 0.69%+ 2.96%+ 0.97%+ $ 0.0081
Period ended 11/30/1995*....... 2.61 2 0.45+ 3.47+ 0.72+ 0.0225
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 38
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") and Nations Fund, Inc. (the "Company") are
registered under the Investment Company Act of 1940, as amended, (the "1940
Act"), as open-end investment companies. As of the date of this report, the
Trust offers thirty-one separate portfolios and the Company offers five separate
portfolios. The Trust changed its fiscal year end from November 30 to March 31
and the Company changed its fiscal year end from May 31 to March 31. The
information presented for the Trust is for the period from December 1, 1995 to
March 31, 1996. The information presented for the Company is for the period from
June 1, 1995 to March 31, 1996. Information presented in these financial
statements pertains only to Nations Prime Fund, Nations Government Money Market
Fund, Nations Treasury Fund and Nations Tax Exempt Fund (individually, the
"Fund", collectively, the "Funds"). The financial statements for the remaining
funds of the Trust and the Company are presented under separate cover. On
February 28, 1996 a special meeting of the Board of Trustees of the Trust and
the Board of Directors of the Company was held to approve the name change from
Trust A and Trust B Shares to Primary A and Primary B Shares, respectively. The
Funds currently offer six classes of shares: Primary A Shares, Primary B Shares
(formerly known as Trust A Shares and Trust B Shares, respectively), 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 preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Funds
in the preparation of their financial statements.
Securities Valuation: The portfolio securities of each Fund are valued on the
basis of amortized cost, which approximates market value. Amortized cost
valuation involves 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. Restricted securities and other assets are valued
at fair value under the supervision of the Board of Trustees or the Board of
Directors.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets in
a separate account with a current value at least equal to the amount of its
when-issued purchase commitments.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
This arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral is at
least equal at all times to the total amount of the repurchase obligations,
including interest. Generally, in the event of counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There is
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its right to dispose of the collateral securities, including the risk
of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its right. Unless permitted by the
Securities and Exchange Commission, these Funds will not enter into repurchase
agreements with the investment adviser, the distributor or any of its
affiliates. The Funds' investment adviser, acting under the supervision of the
Board of Trustees or the Board of Directors, monitors the value of collateral
received as well as the creditworthiness of those banks and dealers with which
the Funds enter into repurchase agreements to evaluate potential risks.
Reverse Repurchase Agreements: The Funds may enter into reverse repurchase
agreements with institutions that the Funds' investment adviser has determined
are credit worthy. Under a reverse repurchase agreement, the Fund sells
securities and agrees to repurchase them at a mutually agreed upon date and
price. At the time the Fund enters into a reverse repurchase agreement, it
establishes a segregated account with its custodian bank in which it will
maintain cash, U.S. Government securities or other liquid high grade debt
obligations equal in value to its obligations arising under the reverse
repurchase agreement. Reverse repurchase agreements involve the risk that the
market value of the securities purchased with the proceeds from the sale of
securities received by the Fund may decline below the price of the securities
36
<PAGE> 39
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Fund is obligated to repurchase. Securities subject to repurchase under
reverse repurchase agreements are designated in the Schedule of Investments.
At March 31, 1996, Nations Treasury Fund had reverse repurchase agreements
outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount................................................................ $531,756,000
Maturity Date.................................................................. 07/02/96
Market Value of Assets Sold Under Agreements................................... $531,501,157
</TABLE>
The average daily balance of reverse repurchase agreements outstanding during
the period ended March 31, 1996 was $651,271,511.
The proceeds received by Nations Treasury Fund under the reverse repurchase
agreements were reinvested in a tri-party repurchase agreement. Net fees earned
during the ten month period ended March 31, 1996, representing the difference
between interest rates on the reverse repurchase and repurchase agreements,
amounted to $713,584 and have been included in interest income in the Statements
of Operations.
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Realized gains and losses are computed on
the specific identification of the securities sold. Interest income, adjusted
for amortization of market discounts and premiums on investments, is earned from
settlement date and is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date. Each Fund's investment income and realized and
unrealized gains and losses are allocated among classes based upon the relative
net assets of each class of shares.
Dividends and Distributions to Shareholders: It is the policy of each Fund to
declare dividends daily from net investment income and to pay such dividends
monthly. Each Fund will distribute net realized short-term capital gains, 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 or Board of Directors in
order to avoid application of the 4% non-deductible Federal excise tax. Income
distributions and capital gain distributions on a Fund level are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to timing differences
and differing characterization of distributions made by the Fund as a whole.
Federal Income Tax: Each Fund intends to qualify as a regulated investment
company by complying with the requirements of the Internal Revenue Code of 1986,
as amended, applicable to regulated investment companies and by distributing
substantially all of its earnings to its shareholders. Therefore, no Federal
income or excise tax provision is required.
Expenses: General expenses of the Trust or the Company are allocated to the
relevant Funds based upon relative net assets. Operating expenses directly
attributable to a Fund or class of shares are charged to 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 of shares.
Cash Flow Information: Cash, as used in the Statement of Cash Flows, is the
amount reported in the Statements of Assets and Liabilities and represents cash
on hand at custodian banks. The Trust and the Company issue and redeem shares,
invest in securities, and distribute dividends from net investment income and
net capital gains (which are either paid in cash or reinvested at the discretion
of shareholders). These activities are reported in the Statements of Changes in
Net Assets. Information on cash payments is presented in the Statement of Cash
Flows.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
Each of the Trust and the Company has, on behalf of its Funds, entered into an
Investment Advisory Agreement with NationsBanc Advisors, Inc. ("NBAI"), a
wholly-owned subsidiary of NationsBank, N.A., pursuant to which NBAI provides
investment advisory services to the Funds. Prior to January 1, 1996,
NationsBank, N.A. acted as Investment Adviser. The investment advisory fees
under the new Investment Advisory Agreements are the same as those under the
prior agreements.
37
<PAGE> 40
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Under the terms of these Investment Advisory Agreements, NBAI is entitled to
receive an advisory fee from Nations Government Money Market Fund and Nations
Tax Exempt Fund equal to 0.40% on an annualized basis, of the average daily net
assets of each Fund.
Under the terms of these Investment Advisory Agreements, NBAI is entitled to
receive an advisory fee from Nations Prime Fund and Nations Treasury Fund at the
following annual rates of the combined average daily net assets of the
aforementioned, respectively:
<TABLE>
<CAPTION>
FEES ON COMBINED FEES ON COMBINED
ASSETS UP TO ASSETS EXCEEDING
$250 MILLION $250 MILLION
------------------------------------
<S> <C> <C>
Nations Prime Fund............................................. 0.25% 0.20%
Nations Treasury Fund.......................................... 0.25% 0.20%
</TABLE>
The Trust and the Company and NBAI have entered into Sub-Advisory Agreements
with TradeStreet Investment Associates, Inc. ("TradeStreet"), a wholly-owned
subsidiary of NationsBank, N.A. Under the terms of these Sub-Advisory
Agreements, TradeStreet is entitled to receive from NBAI a sub-advisory fee for
each Fund at the annual rate of 0.055% of each Fund's average daily net assets.
Stephens Inc. ("Stephens") serves as the administrator of the Trust and the
Company pursuant to Administration Agreements. First Data Investor Services
Group, Inc., a wholly-owned subsidiary of First Data Corporation, serves as the
co-administrator of the Trust and the Company pursuant to Co-Administration
Agreements. Pursuant to the Administration and Co-Administration Agreements, the
administrator and the co-administrator are entitled to receive a combined fee,
computed daily and paid monthly, at the annual rate of 0.10% of average daily
net assets of the Trust, the Company and the investment portfolios of Nations
Fund Portfolios, Inc. (another registered investment company which is part of
the Nations Fund family) on a combined basis. NationsBank, N.A. serves as the
sub-administrator of the Trust and the Company pursuant to Sub-Administration
Agreements with Stephens. For the period ended March 31, 1996, Stephens earned
$1,335,003 (after fee waivers) from the Funds for its administration services of
which $141,191 was paid to NationsBank, N.A.
The investment adviser, sub-adviser, administrator and co-administrator may,
from time to time, reduce their fees payable by each Fund (either voluntarily or
pursuant to applicable state limitations). For the period ended March 31, 1996,
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>
Nations Prime Fund................................................. $ 726,242 $1,537,278
Nations Government Money Market Fund............................... 442,122 19,949
Nations Treasury Fund.............................................. 552,985 1,126,831
Nations Tax Exempt Fund............................................ 1,248,939 52,641
</TABLE>
NationsBank of Texas, N.A. acts as the custodian for the Funds and, for the
period ended March 31, 1996, earned $920,181 for providing such services. First
Data Investor Services Group, Inc. serves as the transfer agent for the Funds'
shares. NationsBank of Texas, N.A. acts as the sub-transfer agent for the
Primary A and Primary B Shares of the Funds and, for the period ended March 31,
1996, earned approximately $13,406 for providing such services. Stephens acts as
distributor of the Funds' shares.
No officer, director or employee of NBAI, TradeStreet, Stephens or First Data
Investor Services Group, Inc., or any affiliate thereof, receives any
compensation from the Trust or the Company for serving as a trustee, director,
officer or employee of the Trust or the Company. Both the Trust and the Company
pay each Trustee or Director an annual fee of $1,000 ($3,000 for the Chairman of
the Board), plus $500 per Fund and an additional $1,000 for each in-person board
meeting, and $500 for each telephonic board meeting attended. The Trust and the
Company also reimburse expenses incurred by each Trustee or Director in
attending such meetings.
The Funds' eligible Trustees or Directors 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
38
<PAGE> 41
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
participants are paid solely out of the Funds' assets. Income earned on each
plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of Nations Treasury Fund. The expense for the deferred
compensation plan is included in the "Trustees'/Directors' fees and expenses"
line of the Statements of Operations.
A summary of the above expenses is as follows:
<TABLE>
<CAPTION>
SUB TRANSFER
SUB AGENT CUSTODIAN
ADVISORY ADMINISTRATION ADMINISTRATION FEES(C) FEES(D)
FEES* FEES*(A) FEES(B) (NATIONSBANK (NATIONSBANK
FUND (NBAI) (STEPHENS) (NATIONSBANK, N.A.) OF TEXAS) OF TEXAS)
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS FUND TRUST
Nations Government Money Market Fund.......... $ 195,815 $ 75,742 $ 8,058 $ 1,946 $ 23,704
Nations Tax Exempt Fund....................... 600,930 224,840 23,632 1,946 62,603
----------- ---------- -------- ------- --------
796,745 300,582 31,690 3,892 86,307
----------- ---------- -------- ------- --------
NATIONS FUND, INC.
Nations Prime Fund............................ 6,265,471 541,971 68,412 4,757 458,562
Nations Treasury Fund......................... 4,417,264 351,259 41,089 4,757 375,312
----------- ---------- -------- ------- --------
10,682,735 893,230 109,501 9,514 833,874
----------- ---------- -------- ------- --------
Total......................................... $11,479,480 $1,193,812 $ 141,191 $13,406 $920,181
=========== ========== ======== ======= ========
</TABLE>
- ---------------
* Advisory and Administration fees are shown net of waivers for the period
ended March 31, 1996. This amount includes fees paid to NationsBank, N.A.
under the prior advisory agreement.
(a) Represents the portion of the administration fees paid to Stephens Inc. for
the period ended March 31, 1996.
(b) Represents the sub-administration fees paid to NationsBank, N.A. for the
period ended March 31, 1996.
(c) Represents the sub-transfer agent fees paid to NationsBank of Texas, N.A.
for the period ended March 31, 1996.
(d) Represents the custodian fees paid to NationsBank of Texas, N.A. for the
period ended March 31, 1996.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust and the Company each have adopted shareholder servicing plans
("Servicing Plans") for Primary B Shares, Investor A Shares, Investor B Shares,
Investor C Shares and Investor D Shares of each Fund and a distribution plan
("Distribution Plans") pursuant to Rule 12b-1 under the 1940 Act for Investor A
Shares, Investor B Shares and Investor D Shares of each Fund. The Servicing
Plans permit the Funds to compensate Servicing Agents and Selling Agents that
have entered into a servicing agreement with the Funds for services provided to
their customers that own Primary B Shares, Investor A Shares, Investor B Shares,
Investor C Shares and Investor D Shares, respectively. The Distribution Plans
permit the Funds to compensate or reimburse Stephens for any activities or
expenses primarily intended to result in the sale of the Funds' Investor A
Shares, Investor B Shares or Investor D Shares, respectively. Payments under the
plans are accrued daily and paid monthly at a rate set from time to time by the
Funds. Fees paid pursuant to the plans are charged as expenses of Primary B
Shares, Investor A Shares, Investor B Shares, Investor C Shares and Investor D
Shares, respectively, of each Fund as accrued.
For the period ended March 31, 1996, the effective rates paid by the Funds, as a
percentage of average daily net assets, pursuant to the plans are as follows:
<TABLE>
<CAPTION>
PRIMARY B INVESTOR A INVESTOR A INVESTOR B INVESTOR B INVESTOR C INVESTOR D INVESTOR D
SERVICING SERVICING DISTRIBUTION SERVICING DISTRIBUTION SERVICING SERVICING DISTRIBUTION
FUND PLAN PLAN PLAN PLAN PLAN PLAN PLAN PLAN
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Prime Fund... 0.25% 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.12%
Nations Government
Money
Market Fund........ 0.25% 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.16%
Nations Treasury
Fund............... 0.25% 0.25% 0.10% 0.25% -- 0.25% 0.25% 0.09%
Nations Tax Exempt
Fund............... 0.25% 0.22% 0.03% 0.20% -- 0.15% 0.23% 0.16%
</TABLE>
A substantial portion of the fees paid pursuant to the plans described above are
paid to affiliates of NationsBank, N.A. and NBAI.
39
<PAGE> 42
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. SHARES OF BENEFICIAL INTEREST.
As of March 31, 1996, an unlimited number of shares without par value were
authorized for the Trust and 270,000,000,000 shares of $.001 par value capital
stock were authorized for the Company. The Trust's Declaration of Trust
authorizes the Board of Trustees to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedule of Capital Stock Activity.
5. RESTRICTED SECURITIES.
The following securities are illiquid and restricted as to resale and,
accordingly, are valued at fair value in good faith by or under the direction of
the Trust's Board of Trustees or the Company's Board of Directors, as
applicable, taking into consideration such factors as the relevant Board deems
appropriate.
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of Nations Prime Fund's total net assets that each
security comprises as well as the aggregate cost of each such security at March
31, 1996.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER 03/31/96 OF
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS COST
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Allstate Life Insurance Company:
5.513% 06/29/96#............................ 11/01/95 $25,000,000 $1.00 $ 25,000,000 0.6% $ 25,000,000
5.513% 06/29/96#............................ 12/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
Anchor National Life Insurance Company,
5.75% 06/29/96#............................. 12/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
Commonwealth Life Insurance Company, Inc.:
5.550% 09/27/96#............................ 12/01/95 62,000,000 1.00 62,000,000 1.5 62,000,000
5.550% 09/27/96#............................ 02/02/96 10,000,000 1.00 10,000,000 0.2 10,000,000
Goldman Sachs Group, L.P.,
5.875% 04/16/96............................. 10/18/95 50,000,000 1.00 50,000,000 1.2 50,000,000
Life Insurance Company of Georgia,
6.0375% 09/27/96#........................... 01/01/96 60,000,000 1.00 60,000,000 1.5 60,000,000
Peoples Security Life Insurance Company,
5.550% 09/27/96#............................ 01/05/96 20,000,000 1.00 20,000,000 0.5 20,000,000
Sun Life Insurance Company of America,
5.809% 09/27/96#............................ 02/19/96 50,000,000 1.00 50,000,000 1.2 50,000,000
Travelers Life Insurance Company,
5.403% 04/01/96+++.......................... 02/01/96 25,000,000 1.00 25,000,000 0.6 25,000,000
- -----------------------------------------------------------------------------------------------------------------------------
$352,000,000 8.5% $352,000,000
- -----------------------------------------------------------------------------------------------------------------------------
# Put Date
+++ Reset Date
</TABLE>
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of Nations Treasury Fund's total net assets that
the security comprises as well as the aggregate cost of each such security at
March 31, 1996.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER 03/31/96 OF
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS COST
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers Inc.,
5.330% 04/18/96............................. 03/19/96 $50,000,000 $1.00 $ 50,000,000 2.0% $ 50,000,000
Merrill Government Securities,
5.500% 04/11/96............................. 04/12/95 75,000,000 1.00 75,000,000 3.0 75,000,000
Morgan Stanley Group Inc.,
5.300% 07/03/96............................. 01/05/96 50,000,000 1.00 50,000,000 2.0 50,000,000
- -----------------------------------------------------------------------------------------------------------------------------
$175,000,000 7.0% $175,000,000
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE> 43
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Certain securities may be sold only pursuant to certain legal restrictions, and
may be difficult to sell. No Fund will invest more than 10% of the value of its
net assets in securities that are illiquid.
The following securities of Nations Prime Fund are restricted to resale,
however, they are considered liquid due to the put feature which allows the Fund
to put the security back to the issuer at par value within seven calendar days
notice.
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of Nations Prime Fund's total net assets that each
security comprises as well as the aggregate cost of each such security at March
31, 1996.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER 03/31/96 OF
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS COST
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
General American Life Insurance Company,
5.510% 04/30/96#............................ 02/01/96 $50,000,000 $1.00 $ 50,000,000 1.2% $ 50,000,000
Life Insurance Company of Virginia:
5.333% 04/07/96#............................ 09/02/95 50,000,000 1.00 50,000,000 1.2 50,000,000
5.352% 04/07/96#............................ 02/01/96 25,000,000 1.00 25,000,000 0.6 25,000,000
5.352% 04/07/96#............................ 03/01/96 25,000,000 1.00 25,000,000 0.6 25,000,000
- -----------------------------------------------------------------------------------------------------------------------------
$150,000,000 3.6% $150,000,000
- -----------------------------------------------------------------------------------------------------------------------------
# Put Date
</TABLE>
6. CAPITAL LOSS CARRYFORWARD.
At March 31, 1996, the Funds had available for Federal income tax purposes the
following unused capital losses:
<TABLE>
<CAPTION>
LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED LOSSES DEFERRED
EXPIRING IN EXPIRING IN EXPIRING IN EXPIRING IN EXPIRING IN EXPIRING IN
1998 1999 2001 2002 2003 2004
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nations Prime Fund.... $ 216,957 $ 203,217 -- -- -- $24,136
Nations Government
Money Market Fund... -- -- -- $ 2,605 $58,645 1,658
Nations Treasury
Fund................ -- -- -- -- -- 6,459
Nations Tax Exempt
Fund................ -- -- $23,264 16,054 29,615 --
</TABLE>
Under the current tax law, capital losses realized after October 31, may be
deferred and treated as occurring on the first day of the following fiscal year.
For the fiscal year ended March 31, 1996, Nations Prime Fund and Nations
Treasury Fund have elected to defer losses occurring between November 1, 1995
and March 31, 1996, under these rules, of $25,675 and $35,940, respectively.
41
<PAGE> 44
NATIONS FUND
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS, DIRECTORS AND TRUSTEES OF NATIONS FUND
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations, the
statement of cash flows for Nations Treasury Fund, the statements of changes in
net assets and the financial highlights present fairly, in all material
respects, the financial position of Nations Prime Fund, Nations Government Money
Market Fund, Nations Treasury Fund and Nations Tax Exempt Fund (collectively
referred to as the "Funds") at March 31, 1996 and the results of each of their
operations, the cash flows for Nations Treasury Fund, 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 Funds' 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 March 31, 1996 by
correspondence with the custodian and brokers and the application of alternative
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
May 17, 1996
42
<PAGE> 45
NATIONS FUND
- --------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED)
For the period ended March 31, 1996, all of the distributions made from
investment income of Nations Tax Exempt Fund, are tax exempt for regular Federal
income tax purposes. A portion of this income may be subject to Federal
Alternative Minimum Tax.
43
<PAGE> 46
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> 47
This report is submitted for the general information of shareholders of Nations
Fund. This material must be accompanied or preceded by a Nations Fund
prospectus.
<PAGE> 48
[Nations Fund Logo] BULK RATE
U.S. POSTAGE PAID
P.O. Box 34602 BOSTON, MA
Charlotte, NC 28234-4602 PERMIT NO.
Toll Free 1-800-982-2271 54201
