<PAGE> 1
NATIONS
FUND
MUNICIPAL
BOND
FUNDS
SEMI ANNUAL REPORT FOR THE PERIOD ENDED SEPTEMBER 30, 1996
[NATIONS
FUND
LOGO]
<PAGE> 2
<TABLE>
<S> <C>
NOT
FDIC- MAY LOSE VALUE
INSURED NO BANK GUARANTEE
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, N.A., IS NOT A BANK AND SECURITIES OFFERED BY IT ARE NOT
GUARANTEED BY ANY BANK OR INSURED BY THE FDIC. STEPHENS INC., MEMBER NYSE-SIPC.
NATIONS FUND INVESTMENT ADVISER: NATIONSBANC ADVISORS, INC.
NATIONS FUND INVESTMENT SUB-ADVISERS: TRADESTREET INVESTMENT ASSOCIATES, INC.
AND GARTMORE GLOBAL PARTNERS.
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
SHAREHOLDER LETTER.............................................................................. 1
FINANCIAL STATEMENTS:
SCHEDULE OF INVESTMENTS:
Short-Term Municipal Income Fund........................................................... 3
Intermediate Municipal Bond Fund........................................................... 6
Municipal Income Fund...................................................................... 10
Florida Intermediate Municipal Bond Fund................................................... 14
Florida Municipal Bond Fund................................................................ 17
Georgia Intermediate Municipal Bond Fund................................................... 19
Georgia Municipal Bond Fund................................................................ 22
Maryland Intermediate Municipal Bond Fund.................................................. 24
Maryland Municipal Bond Fund............................................................... 27
North Carolina Intermediate Municipal Bond Fund............................................ 30
North Carolina Municipal Bond Fund......................................................... 32
South Carolina Intermediate Municipal Bond Fund............................................ 34
South Carolina Municipal Bond Fund......................................................... 37
Tennessee Intermediate Municipal Bond Fund................................................. 39
Tennessee Municipal Bond Fund.............................................................. 41
Texas Intermediate Municipal Bond Fund..................................................... 43
Texas Municipal Bond Fund.................................................................. 45
Virginia Intermediate Municipal Bond Fund.................................................. 47
Virginia Municipal Bond Fund............................................................... 51
STATEMENTS OF ASSETS AND LIABILITIES.......................................................... 54
STATEMENTS OF OPERATIONS...................................................................... 62
STATEMENTS OF CHANGES IN NET ASSETS........................................................... 66
SCHEDULE OF CAPITAL STOCK ACTIVITY............................................................ 74
FINANCIAL HIGHLIGHTS:
Short-Term Municipal Income Fund........................................................... 82
Intermediate Municipal Bond Fund........................................................... 82
Municipal Income Fund...................................................................... 84
Florida Intermediate Municipal Bond Fund................................................... 84
Florida Municipal Bond Fund................................................................ 86
Georgia Intermediate Municipal Bond Fund................................................... 86
Georgia Municipal Bond Fund................................................................ 88
Maryland Intermediate Municipal Bond Fund.................................................. 88
Maryland Municipal Bond Fund............................................................... 90
North Carolina Intermediate Municipal Bond Fund............................................ 90
North Carolina Municipal Bond Fund......................................................... 92
South Carolina Intermediate Municipal Bond Fund............................................ 92
South Carolina Municipal Bond Fund......................................................... 94
Tennessee Intermediate Municipal Bond Fund................................................. 94
Tennessee Municipal Bond Fund.............................................................. 96
Texas Intermediate Municipal Bond Fund..................................................... 96
Texas Municipal Bond Fund.................................................................. 98
Virginia Intermediate Municipal Bond Fund.................................................. 98
Virginia Municipal Bond Fund............................................................... 100
NOTES TO FINANCIAL STATEMENTS................................................................. 102
</TABLE>
<PAGE> 4
NATIONS FUND
DEAR SHAREHOLDER:
Financial assets, particularly U.S. equity securities, have continued to produce
solid returns through the first nine months of 1996. As we anticipated six
months ago, the returns have been less spectacular than in 1995 and have been
accompanied by greater volatility. After selling off sharply in the first part
of the year, taxable bonds have traded in a broad range for the past six months.
Meanwhile, municipal securities have enjoyed better total returns than their
taxable counterparts. International equity securities have produced positive
returns, although these equities have generally lagged their domestic
counterparts.
Throughout the current year, investors have had no lack of issues to worry about
- -- the level of economic activity, Federal Reserve Board (the "Fed") policies,
corporate profits, inflation and domestic politics. Despite the periodic
worries, none of these issues have manifested themselves into overwhelming
problems. The economy has neither accelerated at an unacceptable pace, nor
fallen into recession. The Fed's policies have been steady. Corporate profits
have not achieved 1995's strong gains, but have increased at a reasonable pace.
Inflation remains tame, despite strong job growth and low unemployment.
Moreover, the political season has done little to unsettle the markets. Despite
the election year, Congress produced a timely and sensible budget for fiscal
year 1997.
Outside the U.S. there is much less concern about economies overheating. In both
Europe and Japan, the focus has been on stimulating economic growth and, to this
end, governments have been following loose monetary policies. Provided earnings
continue their strong recovery in these regions, the environment for foreign
equity securities looks very encouraging. Pacific Rim economies have slowed this
year from the exceptionally strong growth over the past few years. Although the
region's slower growth in exports along with tighter monetary policies have had
a negative impact on certain markets, they also have reduced the overheating
inflationary problems which occurred across the region as a result of the
exceptional growth.
Looking ahead, there are strong prospects for a return to higher growth in Asia
next year as central banks begin to ease monetary policies and economic activity
picks up outside Asia, particularly in Europe and Japan. Unlike in the U.S.,
bond yields have actually fallen in many overseas markets and equity valuations
remain generally low in relation to bonds.
The final months of 1996 and the early part of 1997 are unlikely to bring
closure to any of the issues described above. Investors will continue to be edgy
about the prospects for the U.S. economy, inflation and profits. Moreover, we
will continue to hear strong opinions expressed on the future course of the Fed,
and the political landscape after the election. Despite all the worries and
rhetoric, we think the pattern of the last several years will continue to hold
true. Investor apprehension will, from time to time, lead to market volatility.
However, moderate economic growth, stable inflation and modest profits should,
in our view, produce a reasonable investment environment as we move into the new
year.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman
of the Board
September 30, 1996
1
<PAGE> 5
THE NATIONS FUND ADVANTAGE
A family of mutual funds provides investors with a number of advantages,
including the ability to shift investment assets among funds as their financial
objectives change. The Nations Fund family of mutual funds includes a broad
array of professionally managed domestic and international stock, bond and money
market funds advised by NationsBanc Advisors, Inc. The family is designed to
accommodate a wide variety of investment objectives across the risk/reward
spectrum.
[RISK/RETURN SPECTRUM* GRAPH]
For specific information on developing an investment portfolio that will more
closely target your investment objectives, contact your investment
representative or Nations Fund for fund brochures and prospectuses at (800)
982-2271.
- ---------------
* The Nations Fund family includes Nations Equity Index Fund, which seeks
investment results that correspond, before fees and expenses, to the total
return of the S&P 500 Index, and Nations Managed Index Fund, which seeks, over
the long-term to provide a total return which (gross of fees and expenses)
exceeds the total return of the S&P 500.
2
<PAGE> 6
NATIONS FUND
Nations Short-Term Municipal Income Fund
-------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 99.9%
ALASKA -- 5.6%
$1,000,000 Alaska State, Student
Loan Corporation,
Student Loan Revenue,
Series A, AMT,
4.900% 07/01/00...... Aaa AAA $ 999,250
1,000,000 North Slope Borough,
Alaska, Capital
Appreciation, GO,
Series B, (MBIA
Insured),
Zero coupon
06/30/99+............ Aaa AAA 879,240
2,000,000 North Slope Borough,
Alaska, GO, Series B,
(CGIC Insured),
6.100% 06/30/99...... Aaa AAA 2,085,940
-----------
3,964,430
-----------
ARIZONA -- 2.9%
2,000,000 Arizona State
Transportation Board,
Excise Tax Revenue,
(Maricopa County
Regional Area Road
Fund),
7.200% 07/01/97...... Aa AA- 2,045,920
-----------
CALIFORNIA -- 5.7%
2,000,000 Santa Barbara County,
California, Tax and
Revenue Anticipation
Notes, Series A,
4.750% 10/01/97...... NR Sp1+ 2,016,900
1,945,000 University of
California, Hospital
Revenue, Refunding,
(UCLA Medical
Center), (MBIA
Insured),
8.000% 12/01/97...... Aaa AAA 2,035,656
-----------
4,052,556
-----------
DISTRICT OF COLUMBIA -- 1.5%
1,000,000 District of Columbia,
GO, Series A, (MBIA
Insured),
6.000% 06/01/98...... Aaa AAA 1,025,900
-----------
FLORIDA -- 1.5%
1,000,000 Florida State Turnpike
Authority Revenue,
Department of
Transportation,
7.350% 07/01/98...... A1 NR 1,052,410
-----------
GEORGIA -- 5.8%
Georgia State,
Municipal Electric
Power Authority
Revenue:
1,000,000 Series L,
7.500% 01/01/98...... A A 1,029,190
1,000,000 Series V,
5.700% 01/01/98...... A A 1,016,950
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$1,000,000 Georgia State
Refunding, GO, Series
E,
4.200% 07/01/99...... Aaa AA+ $ 997,680
1,000,000 Monroe County, Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation), Series
A,
5.550% 01/01/99...... A3 A+ 1,020,250
-----------
4,064,070
-----------
GUAM -- 2.1%
500,000 Government of Guam,
Airport Authority
Revenue, Series A,
5.400% 10/01/99...... NR BBB 504,820
1,000,000 Government of Guam, GO,
Series A,
4.900% 09/01/97...... NR BBB 1,007,190
-----------
1,512,010
-----------
ILLINOIS -- 3.3%
1,000,000 Illinois State, GO,
5.600% 06/01/98...... A1 AA- 1,021,960
1,285,000 Metropolitan Pier and
Exposition Authority,
Illinois, Dedicated
State Tax Revenue,
Refunding, (McCormick
Place Exposition
Project), Series A,
(AMBAC Insured),
4.700% 12/15/01...... Aaa AAA 1,280,811
-----------
2,302,771
-----------
INDIANA -- 1.9%
1,280,000 Indiana State Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project),
6.000% 09/15/99...... Aa NR 1,330,445
-----------
MASSACHUSETTS -- 3.2%
1,200,000 Massachusetts State,
Refunding,
Consolidated Loan,
GO, Series A, (FSA
Insured),
7.100% 02/01/98...... Aaa AAA 1,247,652
1,000,000 Massachusetts State,
Refunding, GO, Series
A,
5.500% 07/01/99...... A1 A+ 1,027,110
-----------
2,274,762
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 7
NATIONS FUND
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MICHIGAN -- 11.4%
$2,000,000 Detroit, Michigan,
Convention Facilities
Revenue Refunding,
(Cobo Hall Expansion
Project),
4.750% 09/30/00...... NR A $ 1,987,780
Detroit, Michigan, GO:
3,000,000 Refunding,
5.800% 05/01/97...... NR BBB 3,028,320
1,000,000 Series B,
5.100% 04/01/99...... Ba1 BBB 1,002,090
Detroit, Michigan,
Self-Insurance,
Series A:
1,000,000 5.200% 05/01/98...... NR BBB- 1,009,950
1,000,000 5.600% 05/01/01...... NR BBB- 1,016,490
-----------
8,044,630
-----------
NEVADA -- 4.3%
1,000,000 Clark County, Nevada,
Sanitation District,
GO, Series A, (AMBAC
Insured),
5.700% 07/01/99...... Aaa AAA 1,030,410
2,000,000 Washoe County, Nevada,
Airport Authority,
Airport System
Improvement Revenue,
Series A, AMT,
5.100% 07/01/99...... Aaa AAA 2,023,880
-----------
3,054,290
-----------
NEW MEXICO -- 2.6%
1,760,000 New Mexico Mortgage
Finance Authority,
Single-family
Mortgage Purchase
Refunding, Series
A-1,
5.900% 07/01/99...... Aa AA 1,811,779
-----------
NEW YORK -- 1.5%
1,000,000 New York State,
Refunding, GO, Series
B,
6.375% 08/15/00...... A A- 1,063,740
-----------
NORTH CAROLINA -- 2.9%
2,000,000 North Carolina Eastern
Municipal Power
Agency, Power System
Revenue, Refunding,
Series A,
7.000% 01/01/00...... Baa1 BBB+ 2,051,760
-----------
PENNSYLVANIA -- 4.3%
1,000,000 Monroeville,
Pennsylvania,
Hospital Authority
Revenue,
5.125% 10/01/00...... Baa1 BBB+ 995,540
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PENNSYLVANIA -- (CONTINUED)
$2,000,000 Philadelphia,
Pennsylvania, Water
and Wastewater
Revenue,
4.500% 06/15/97...... Baa BBB $ 2,007,500
-----------
3,003,040
-----------
SOUTH CAROLINA -- 4.4%
1,000,000 Greenville, South
Carolina, Hospital
Facilities Revenue,
Series B,
4.250% 05/01/98...... Aa AA- 999,820
1,000,000 Greenville County,
South Carolina,
School District, GO,
6.500% 02/01/98...... A1 AA- 1,031,750
1,000,000 Medical University of
South Carolina,
Hospital Facilities
Revenue Refunding,
Series A,
6.900% 07/01/98...... A A+ 1,043,320
-----------
3,074,890
-----------
SOUTH DAKOTA -- 1.1%
715,000 South Dakota Student
Loan Assistance
Corporation, Student
Loan Revenue, Series
A,
7.000% 08/01/98...... NR A+ 744,594
-----------
TENNESSEE -- 7.0%
1,100,000 McMinn County,
Tennessee, Industrial
Development Board,
PCR, Refunding,
(Bowater Inc.
Project),
6.850% 04/01/01...... Baa1 BBB 1,178,947
2,525,000 Memphis, Tennessee,
Capital Outlay Notes,
GO,
5.000% 07/01/98...... Aa AA 2,565,046
1,125,000 Rutherford County,
Tennessee, Capital
Outlay Notes, GO,
5.400% 04/01/01...... Aa AA- 1,162,609
-----------
4,906,602
-----------
TEXAS -- 15.3%
1,000,000 Addison, Texas,
Refunding, GO, (FGIC
Insured),
6.100% 09/01/99...... Aaa AAA 1,031,110
1,000,000 Bexar County, Texas,
Refunding Limited
Tax, GO,
6.100% 06/15/98...... Aa AA 1,014,660
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 8
NATIONS FUND
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$1,000,000 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior.
Lien, Series A-2,
AMT, (Guaranteed
Student Loans),
5.300% 06/01/97...... Aaa NR $ 1,009,260
1,000,000 Conroe, Texas,
Independent School
District, GO,
Schoolhouse and
Refunding, (MBIA
Insured),
7.000% 02/01/99...... Aaa AAA 1,057,730
3,000,000 Dallas-Fort Worth,
Texas, Regional
Airport Revenue,
Refunding,
(Dallas-Fort Worth
International Airport
Project), (MBIA
Insured),
4.750% 11/01/01...... Aaa AAA 3,016,020
1,000,000 Harris County, Texas,
Municipal Utilities
District No. 203,
Refunding, GO, (MBIA
Insured),
6.950% 03/01/99...... Aaa AAA 1,060,540
1,000,000 Texas State College,
Texas, Student Loan
Authority Revenue,
GO, AMT,
5.100% 08/01/01...... Aa AA 1,005,890
1,500,000 Texas State, Public
Finance Authority
Revenue, Series A,
ETM,
6.800% 02/01/98...... A NR 1,553,835
-----------
10,749,045
-----------
VIRGINIA -- 1.5%
1,000,000 Virginia Beach,
Virginia, GO, Series
A,
6.800% 06/01/99...... Aa AA 1,060,630
-----------
WASHINGTON -- 8.0%
1,000,000 Conservation and
Renewable Energy
System Revenue,
Washington,
(Washington
Conservation
Project),
5.050% 10/01/98...... Aa AA 1,012,140
1,570,000 King County,
Washington, GO,
Series A,
9.000% 12/01/98...... Aa1 AA+ 1,725,242
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- (CONTINUED)
Washington State Public
Power Supply System,
Revenue Refunding,
Series C, (Nuclear
Project No. 2):
$1,000,000 7.300% 07/01/00........ Aa AA $ 1,081,750
1,675,000 (MBIA-IBC Insured),
7.200% 07/01/99...... Aaa AAA 1,783,389
-----------
5,602,521
-----------
WISCONSIN -- 2.1%
1,480,000 Wisconsin State
Transportation
Revenue, Series A,
4.600% 07/01/98...... A1 AA- 1,490,819
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $69,546,306)............ 70,283,614
==========
</TABLE>
<TABLE>
<CAPTION>
SHARES
<C> <S> <C> <C> <C>
---------
MONEY MARKET FUND -- 2.0%
(Cost $1,435,000)
1,435,000 AIM Tax-Exempt Fund............. 1,435,000
==========
TOTAL INVESTMENTS
(Cost $70,981,306*)..................... 101.9% 71,718,614
OTHER ASSETS AND
LIABILITIES (NET)....................... (1.9) (1,325,373)
---- -----
NET ASSETS................................ 100.0% $70,393,241
==== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 4.583%.
ABBREVIATIONS:
<TABLE>
<S> <C> <C> <C>
AMBAC American
Municipal
Bond
Assurance
Corporation
AMT Alternative Minimum Tax
CGIC Capital Guaranty Insurance Corporation
ETM Escrowed to Maturity
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
IBC Insured Bond Certificate
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
Nations Short-Term Municipal Income Fund had the following
insurance concentration greater than 10% at September 30,
1996 (as a percentage of net assets):
MBIA 15.4%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 9
NATIONS FUND
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.5%
ALASKA -- 5.7%
$3,280,000 Alaska State, Student
Loan Corporation,
Student Loan
Revenue, Series A,
AMT, (AMBAC
Insured),
5.250% 07/01/03..... Aaa AAA $ 3,279,705
2,000,000 Anchorage, Alaska, GO,
Series A, (AMBAC
Insured),
5.100% 08/01/07..... Aaa AAA 1,962,360
-----------
5,242,065
-----------
ARIZONA -- 1.1%
955,000 Arizona State
University, Systems
Revenue, Series A,
6.500% 07/01/01..... A1 AA 1,029,060
-----------
CALIFORNIA -- 1.1%
1,000,000 Sacramento,
California,
Cogeneration
Authority, (Procter
& Gamble Company
Project),
5.700% 07/01/00..... NR BBB- 1,023,600
-----------
COLORADO -- 1.8%
1,500,000 Arapahoe County,
Colorado, School
District No. 5,
(Cherry Creek),
7.000% 12/15/04..... Aa AA 1,642,545
-----------
DISTRICT OF COLUMBIA -- 2.3%
Washington, D.C.,
Metropolitan Area
Transportation
Authority Revenue,
Refunding, (FGIC
Insured):
2,000,000 4.400% 01/01/00..... Aaa AAA 1,993,760
100,000 4.900% 01/01/05..... Aaa AAA 98,778
-----------
2,092,538
-----------
FLORIDA -- 6.3%
2,700,000 Duval County, Florida,
Housing Finance
Authority Refunding,
(Greentree Place
Project),
6.750% 04/01/25..... NR BBB+ 2,766,447
Florida State Housing
Finance Agency,
Refunding:
1,000,000 Multi-family
Housing, (Altamonte
Project), Series C,
7.000% 12/01/03..... NR BBB+ 1,034,300
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
Florida State Housing
Finance Agency,
Refunding
(continued):
$2,000,000 Multi-family Housing
Revenue, (Andover
Project), Series E,
6.350% 05/01/26..... NR BBB+ $ 2,017,820
-----------
5,818,567
-----------
GEORGIA -- 3.2%
1,500,000 Burke County, Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation), Series
B,
4.700% 01/01/04..... NR A+ 1,458,225
1,500,000 Fulco, Georgia,
Hospital Authority
Revenue, Revenue
Anticipation
Certificates,
5.100% 10/01/05..... A A 1,474,740
-----------
2,932,965
-----------
GUAM -- 1.5%
1,500,000 Government of Guam,
GO, Series A,
5.200% 11/15/08..... NR BBB 1,414,815
-----------
ILLINOIS -- 17.2%
2,500,000 Chicago, Illinois, Gas
Supply Revenue,
6.875% 03/01/15..... Aa3 AA- 2,681,950
2,000,000 Chicago, Illinois,
O'Hare International
Airport Revenue,
Passenger Facility
Charge, Series B,
AMT, (AMBAC
Insured),
5.000% 01/01/02..... Aaa AAA 1,998,940
Chicago, Illinois,
School Financing
Authority, GO:
2,000,000 4.800% 06/01/04....... Aaa AAA 1,952,760
1,160,000 Series A,
4.900% 06/01/05..... Aaa AAA 1,131,139
Illinois State Health
Facilities Authority
Revenue:
1,100,000 (Edward Hospital
Project), Series A,
5.750% 02/15/09..... A A 1,080,838
1,000,000 (Lutheran General
Health Systems
Project), Series C,
5.250% 04/01/02..... A A+ 1,002,360
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 10
NATIONS FUND
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$1,595,000 Lake County, Illinois,
High School District
No. 125, (Adlai E.
Stevenson High
School),
5.000% 01/01/04..... Aa1 NR $ 1,598,732
1,050,000 Lansing, Illinois,
Sales Tax Increment
Revenue, Refunding,
6.500% 12/01/02..... NR BBB 1,099,182
2,000,000 Metropolitan Pier and
Exposition
Authority, Illinois,
Dedicated Tax
Revenue Refunding,
(McCormick Place
Expansion Project),
Series A, (AMBAC
Insured),
6.000% 12/15/06..... Aaa AAA 2,115,560
1,000,000 Regional
Transportation
Authority, Illinois,
Series A, (FGIC
Insured),
6.350% 11/01/04..... Aaa AAA 1,075,470
-----------
15,736,931
-----------
INDIANA -- 2.7%
Indiana State Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project):
1,280,000 6.200% 09/15/00..... Aa NR 1,348,109
1,040,000 6.500% 09/15/02..... Aa NR 1,122,836
-----------
2,470,945
-----------
MAINE -- 2.6%
2,325,000 Maine State, Municipal
Board Refunding,
Series A,
4.900% 11/01/02..... Aa A+ 2,339,485
-----------
MARYLAND -- 6.4%
1,500,000 Baltimore, Maryland,
Port Facilities
Revenue,
Consolidated Coal
Sales, Series 85,
6.500% 12/01/10..... Aa3 AA- 1,626,255
1,720,000 Maryland State
Transportation
Authority, Special
Obligation Revenue,
(Baltimore/Washington
D.C. International
Airport Project),
Series A, AMT, (FGIC
Insured),
6.400% 07/01/19..... Aaa AAA 1,771,841
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$2,500,000 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply
Revenue, GO,
4.900% 12/01/05..... Aa1 AA $ 2,479,450
-----------
5,877,546
-----------
MASSACHUSETTS -- 2.2%
2,000,000 New England Education
Loan Marketing
Corporation, Series
A, AMT,
5.700% 07/01/05..... A1 A- 2,034,240
-----------
MICHIGAN -- 6.1%
2,500,000 Detroit, Michigan,
Convention
Facilities Revenue
Refunding, (Cobo
Hall Expansion
Project), (FSA
Insured),
5.100% 09/30/04..... Aaa AAA 2,500,000
Detroit, Michigan,
Refunding, GO:
2,000,000 5.800% 05/01/97..... NR BBB 2,018,880
1,000,000 Series B,
6.750% 04/01/03..... Ba1 BBB 1,059,170
-----------
5,578,050
-----------
MISSOURI -- 2.3%
2,000,000 Kansas City, Missouri,
Industrial
Development
Authority, PCR,
(General Motors
Corporation
Project),
6.050% 04/01/06..... A3 A- 2,060,140
-----------
NEVADA -- 2.9%
1,500,000 Clark County, Nevada,
School District GO,
Series A, (MBIA
Insured),
6.700% 03/01/06..... Aaa AAA 1,602,750
1,000,000 Nevada State,
Municipal GO, ETM,
7.000% 01/01/03..... Aaa AAA 1,087,480
-----------
2,690,230
-----------
PENNSYLVANIA -- 8.0%
2,000,000 Geisinger Authority,
Pennsylvania, Health
Systems Revenue,
Series A,
6.000% 07/01/01..... Aa AA 2,098,140
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 11
NATIONS FUND
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PENNSYLVANIA -- (CONTINUED)
$1,000,000 Pennsylvania
Intergovernment
Cooperative
Authority, Special
Tax Revenue,
Philadelphia Funding
Program, (FGIC
Insured),
7.000% 06/15/05..... Aaa AAA $ 1,140,470
2,500,000 Philadelphia,
Pennsylvania,
Industrial
Development
Authority,
Industrial
Development Revenue
Refunding, (Ashland
Oil Inc. Project),
5.700% 06/01/05..... Baa1 NR 2,540,950
1,500,000 Philadelphia,
Pennsylvania, Water
and Wastewater
Systems, (FGIC
Insured),
5.500% 06/15/03..... Aaa AAA 1,554,285
-----------
7,333,845
-----------
PUERTO RICO -- 1.5%
1,285,000 Commonwealth of Puerto
Rico, Highway and
Transportation
Authority, Highway
Revenue Refunding,
Series V,
6.625% 07/01/12..... Baa1 A 1,375,348
-----------
SOUTH CAROLINA -- 0.5%
500,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation
Project), AMT,
5.700% 01/01/24..... A2 A+ 482,865
-----------
TENNESSEE -- 1.2%
1,000,000 Metropolitan
Government of
Nashville and
Davidson County,
Tennessee, Health
and Education
Facilities Board
Revenue, Refunding
and Improvement,
(Meharry Medical
College Project),
(AMBAC Insured),
6.000% 12/01/08..... Aaa AAA 1,059,340
-----------
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- 6.2%
$1,000,000 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Sr. Lien,
Series A-2, AMT,
(Guaranteed Student
Loans),
6.050% 06/01/03..... Aaa NR $ 1,042,730
1,000,000 Gulf Coast, Texas,
Industrial
Development
Authority, (Champion
International
Corporation
Project),
7.000% 04/01/04..... Baa1 BBB 1,032,110
1,350,000 Harris County, Texas,
Health Facilities
Development
Corporation,
Hospital Revenue
Refunding, (Texas
Childrens Hospital
Project), (MBIA
Insured),
6.000% 10/01/05..... Aaa AAA 1,424,871
1,500,000 Irving, Texas,
Independent School
District, Capital
Appreciation
Refunding, GO, (PSFG
Insured),
Zero coupon 02/15/02+... Aaa AAA 1,152,705
1,000,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance
Series B-4, AMT,
6.100% 12/01/06..... Aa AA 1,028,430
-----------
5,680,846
-----------
VIRGINIA -- 7.2%
1,000,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco
Corporation
Project),
5.900% 03/01/05..... A1 A 1,124,380
1,330,000 Halifax County,
Virginia, Industrial
Development
Authority, (Old
Dominion Electric
Cooperative), AMT,
5.900% 12/01/02..... NR A+ 1,374,941
1,500,000 Metropolitan
Washington, D.C.,
Airport Authority of
Virginia, General
Airport Revenue,
Series A, AMT, (MBIA
Insured),
5.600% 10/01/06..... Aaa AAA 1,531,080
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 12
NATIONS FUND
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,500,000 Virginia State, Public
Facilities GO,
Series A,
5.400% 06/01/05..... Aaa AAA $ 1,554,495
1,000,000 Virginia State, Public
Schools Authority
Revenue, Series B,
6.650% 01/01/98..... Aa AA 1,026,350
-----------
6,611,246
-----------
WASHINGTON -- 6.1%
Seattle, Washington,
Municipal Light and
Power Revenue:
1,750,000 Refunding,
4.800% 05/01/02..... Aa AA 1,749,930
1,640,000 Series A,
5.750% 08/01/16..... Aa AA 1,624,551
1,000,000 Washington State, GO,
Series R-92-A,
6.400% 09/01/03..... Aa AA 1,075,420
1,150,000 Washington State
Public Power Supply
System, Revenue
Refunding, (Nuclear
Project No. 2),
Series A,
5.800% 07/01/07..... Aa AA 1,166,790
-----------
5,616,691
-----------
WISCONSIN -- 1.4%
1,240,000 Wisconsin State,
Refunding, GO,
Series 3,
4.250% 11/01/99..... Aa AA 1,236,057
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $87,413,293)................... 89,379,960
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C> <C>
- ------------------------------------------------------------
MONEY MARKET FUND -- 3.4%
(Cost $3,099,000)
3,099,000 AIM Tax-Exempt Fund............ $ 3,099,000
==========
TOTAL INVESTMENTS
(Cost $90,512,293*)..................... 100.9% 92,478,960
OTHER ASSETS AND
LIABILITIES (NET)....................... (0.9) (840,268)
---- ----------
NET ASSETS................................ 100.0% $91,638,692
==== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 5.384%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
ETM Escrow to Maturity
FGIC Federal Guaranty Insurance Corporation
FSA Federal Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
PSFG Permanent School Funding Guaranty
Nations Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at September 30,
1996 (as a percentage of net assets):
AMBAC 11.4%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 13
NATIONS FUND
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 98.7%
ALABAMA -- 6.4%
$2,000,000 Birmingham, Alabama,
Refunding, Series B,
GO,
6.250% 04/01/12...... A1 AA $ 2,096,200
3,000,000 Butler County, Alabama,
Industrial
Development Board,
Solid Waste Disposal
Revenue, (James River
Corporation Project),
8.000% 09/01/28...... NR BBB- 3,306,150
1,000,000 Morgan County-Decatur,
Alabama, Healthcare
Authority, Hospital
Revenue Refunding,
(Decatur General
Hospital), (Connie
Lee Insured),
6.250% 03/01/13...... NR AAA 1,044,050
-----------
6,446,400
-----------
ALASKA -- 3.4%
1,000,000 Anchorage, Alaska,
Electric Utilities
Revenue Refunding,
Senior Lien, (MBIA
Insured),
8.000% 12/01/09...... Aaa AAA 1,240,520
2,250,000 Anchorage, Alaska,
Telephone Utilities
Revenue Refunding,
Series A, (AMBAC
Insured),
4.500% 12/01/02...... Aaa AAA 2,189,610
-----------
3,430,130
-----------
ARIZONA -- 1.1%
1,000,000 Maricopa County,
Arizona, Unified
School District No.
48, (Scottsdale
Refunding), Series B,
6.300% 07/01/04...... Aa AA 1,089,310
-----------
COLORADO -- 3.7%
1,500,000 Arapahoe County,
Colorado, Capital
Improvement,
Transportation,
Federal Highway
Revenue Bonds, Series
E-470,
6.900% 08/31/15...... Baa NR 1,590,030
2,000,000 Jefferson County,
Colorado, School
District No. R-001,
(AMBAC Insured),
6.000% 12/15/06...... Aaa AAA 2,110,300
-----------
3,700,330
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
CONNECTICUT -- 4.0%
Connecticut State
Housing Finance
Authority Revenue,
(Housing Mortgage
Finance Program):
$1,930,000 Series A,
6.100% 05/15/13...... Aa AA $ 1,966,399
2,000,000 Series B,
6.700% 11/15/12...... Aa AA 2,099,300
-----------
4,065,699
-----------
FLORIDA -- 4.9%
1,000,000 Dade County, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding,
(Baptist Hospital,
Miami Project),
Series A, (MBIA
Insured),
5.250% 05/15/21...... Aaa AAA 925,840
1,000,000 Jacksonville, Florida,
PCR, Refunding,
(Anheuser-Busch
Companies Project),
5.700% 08/01/31...... A1 AA- 979,160
1,000,000 Martin County, Florida,
Industrial
Development Authority
Revenue, (Indiantown
Cogeneration
Project), Series A,
AMT,
7.875% 12/15/25...... Baa3 BBB- 1,128,280
2,000,000 South Broward, Florida,
Hospital District
Revenue Refunding,
5.500% 05/01/28...... Aaa AAA 1,894,100
-----------
4,927,380
-----------
GEORGIA -- 13.2%
1,000,000 Metropolitan Atlanta
Rapid Transit
Authority (MARTA),
Georgia, Sales Tax
Revenue Refunding,
Series P, (AMBAC
Insured),
6.100% 07/01/05...... Aaa AAA 1,074,180
1,000,000 Monroe County, Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation), Series
A,
6.800% 01/01/11...... A3 A+ 1,111,430
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 14
NATIONS FUND
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
Savannah, Georgia,
Hospital Authority,
Revenue Refunding and
Improvement:
$3,000,000 (Candler Hospital
Project),
7.000% 01/01/23...... Baa BBB+ $ 3,089,010
2,000,000 (St. Joseph's Hospital
Project),
6.125% 07/01/12...... A NR 2,059,120
2,690,000 Union County, Georgia,
Housing Authority,
Multi-family Housing
Revenue Refunding,
(Hidden Lake
Apartments), Series
S, (FHA/FNMA
Insured),
7.125% 12/01/25...... Aaa NR 2,844,110
3,000,000 White County, Georgia,
Industrial
Development Authority
Revenue Refunding,
(Clark-Schwebel Fiber
Glass Company
Project),
6.850% 06/01/10...... NR BBB+ 3,129,330
-----------
13,307,180
-----------
ILLINOIS -- 9.5%
1,500,000 Chicago, Illinois,
O'Hare International
Airport, Special
Facilities Revenue
Refunding, (American
Airlines Inc.
Project),
8.200% 12/01/24...... Baa2 BB+ 1,740,090
1,000,000 Illinois State
Development Finance
Authority, PCR,
Refunding, (Edison
Company Project),
Series D, (AMBAC
Insured),
6.750% 03/01/15...... Aaa AAA 1,085,350
2,000,000 Illinois State Health
Facilities Authority
Revenue, (OSF
Healthcare System),
6.000% 11/15/10...... A1 A+ 1,999,840
1,500,000 Illinois State Sales
Tax Revenue
Refunding, Series V,
6.375% 06/15/17...... A1 AAA 1,567,920
1,000,000 Illinois State Toll
Highway Authority
Revenue, Series A,
(FGIC Insured),
6.200% 01/01/16...... Aaa AAA 1,041,120
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$3,000,000 Metropolitan Pier and
Exposition Authority,
Illinois, State Tax
Revenue, Capital
Appreciation,
Refunding, Series A,
(MBIA Insured),
Zero coupon 12/15/13+... Aaa AAA $ 1,086,510
1,000,000 Regional Transportation
Authority, Illinois,
Revenue Bonds, Series
A, (AMBAC Insured),
6.500% 06/01/15...... Aaa AAA 1,073,390
-----------
9,594,220
-----------
INDIANA -- 5.7%
2,500,000 Franklin, Indiana,
Economic Development
Revenue Refunding,
(Hoover Universal
Inc. Project
Guaranteed),
6.100% 12/01/04...... A2 A 2,633,550
1,000,000 Indiana State Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project), Series
A,
5.750% 09/01/15...... Aa AA- 985,220
2,000,000 Indianapolis, Indiana,
Airport Authority,
Special Facilities
Revenue, (Federal
Express Corporation
Project),
7.100% 01/15/17...... Baa2 BBB 2,128,880
-----------
5,747,650
-----------
KANSAS -- 2.1%
2,000,000 Kansas City, Kansas,
Utilities System
Revenue Refunding and
Improvement, (FGIC
Insured),
6.250% 09/01/14...... Aaa AAA 2,108,700
-----------
MICHIGAN -- 2.9%
3,000,000 Michigan State Job
Development
Authority, PCR,
(General Motors
Corporation),
5.550% 04/01/09...... A3 A- 2,960,940
-----------
MISSISSIPPI -- 0.9%
1,000,000 Claiborne County,
Mississippi, PCR,
(Systems Energy
Resource Inc.
Project),
6.200% 02/01/26...... Ba1 BBB- 961,060
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 15
NATIONS FUND
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEVADA -- 1.0%
$1,000,000 Nevada State, GO,
(Project No.
40-41-A),
6.375% 12/01/17...... NR AAA $ 1,034,030
-----------
NEW JERSEY -- 1.1%
1,010,000 North Brunswick
Township, New Jersey,
Unlimited Tax, GO,
6.400% 05/15/08...... A1 NR 1,089,164
-----------
OHIO -- 3.0%
1,000,000 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight
Corporation Project),
Series F,
6.050% 10/01/09...... NR BBB- 1,010,410
1,000,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project),
6.125% 12/01/13...... NR BBB+ 1,088,310
1,000,000 Ohio State Air Quality
Development
Authority, PCR,
Refunding, (Ohio
Edison Company),
Class A,
5.950% 05/15/29...... Baa2 BBB- 910,790
-----------
3,009,510
-----------
PENNSYLVANIA -- 6.8%
2,000,000 Lehigh County,
Pennsylvania,
Industrial
Development
Authority, PCR,
Refunding,
(Pennsylvania Power
and Light Company
Project), Series A,
(MBIA Insured),
6.400% 11/01/21...... Aaa AAA 2,105,440
1,000,000 Philadelphia,
Pennsylvania, Gas
Works Revenue
Refunding, 14th
Series,
6.250% 07/01/08...... Baa1 BBB 1,023,620
1,725,000 Philadelphia,
Pennsylvania,
Hospital and Higher
Education Facilities
Authority, Hospital
Revenue, (Frankford
Hospital Project),
Series A,
6.000% 06/01/14...... A3 BBB+ 1,695,365
2,000,000 Philadelphia,
Pennsylvania,
Industrial
Development
Authority, Industrial
Development Revenue
Refunding, (Ashland
Oil Inc. Project),
5.700% 06/01/05...... Baa1 NR 2,032,760
-----------
6,857,185
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- 6.1%
$2,000,000 South Carolina State
Housing Finance and
Development
Authority,
Homeownership
Mortgage Purchase,
Series A,
6.375% 07/01/16...... Aa AA $ 2,041,220
2,000,000 Spartanburg County,
South Carolina, Solid
Waste Disposal
Facilities Revenue,
(BMW Project),
7.550% 11/01/24...... NR NR 2,169,560
2,000,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation Project),
AMT,
5.700% 01/01/24...... A2 A+ 1,931,460
-----------
6,142,240
-----------
TENNESSEE -- 6.5%
2,000,000 Humphreys County,
Tennessee, Industrial
Development Board,
Solid Waste Disposal
Revenue, (duPont
(E.I.) de Nemours &
Company Project),
AMT,
6.700% 05/01/24...... Aa3 AA- 2,131,880
2,500,000 Maury County,
Tennessee, Industrial
Development Board,
PCR, Multi-Modal,
Refunding, (Saturn
Corporation Project),
General Motors
Guaranty Agreement,
6.500% 09/01/24...... A3 A- 2,604,975
1,750,000 McMinn County,
Tennessee, Industrial
Development Board,
Solid Waste Recycling
Facility Revenue,
(Calhoun Newsprint
Project), AMT,
7.400% 12/01/22...... Baa1 BBB 1,880,760
-----------
6,617,615
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 16
NATIONS FUND
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- 7.8%
$4,000,000 Alliance Airport
Authority Inc.,
Texas, Special
Facilities Revenue,
(American Airlines
Inc. Project), AMT,
7.000% 12/01/11...... Baa2 BB+ $ 4,355,400
1,000,000 Brazos River Authority,
Texas, Revenue
Refunding, (Houston
Light & Power Company
Project), Series B,
(MBIA Insured),
6.375% 04/01/12...... Aaa AAA 1,057,360
1,500,000 Lubbock, Texas, Health
Facilities
Development
Corporation, Revenue
Refunding, (St.
Joseph Health System
Project),
5.500% 07/01/14...... Aa3 AA 1,453,620
1,000,000 San Antonio, Texas,
Electricity and Gas
Refunding, Revenue
Bonds,
5.750% 02/01/11...... Aa1 AA 1,012,070
------------
7,878,450
------------
VIRGINIA -- 2.1%
2,000,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco Corporation
Project),
6.650% 09/01/18...... A1 A 2,132,500
------------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 5.5%
$2,500,000 Public Industrial
Corporation, Port
Camas-Washougal,
Washington, PCR,
(James River
Corporation Project),
6.700% 04/01/23...... NR BBB- $ 2,534,700
3,000,000 Washington State,
Public Power Supply
System, Revenue
Refunding, Series B,
(Systems Nuclear
Project No. 3), (FSA
Insured),
5.400% 07/01/05...... Aaa AAA 3,022,620
------------
5,557,320
------------
WYOMING -- 1.0%
1,000,000 Campbell County,
Wyoming, School
District No. 001
Gillette, (School
Board Guarantee),
5.550% 06/01/06...... Aaa AAA 1,021,680
------------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $93,781,120).............. 99,678,693
============
</TABLE>
<TABLE>
<CAPTION>
SHARES
<C> <S> <C> <C> <C>
---------
MONEY MARKET FUND -- 1.2%
(Cost $1,276,000)
1,276,000 AIM Tax-Exempt Fund............. 1,276,000
============
TOTAL INVESTMENTS
(Cost $95,057,120*).................... 99.9% 100,954,693
OTHER ASSETS AND
LIABILITIES (NET)...................... 0.1 71,583
----- ------------
NET ASSETS............................... 100.0% $101,026,276
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 6.050%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Federal Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 17
NATIONS FUND
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 95.9%
FLORIDA -- 89.9%
$1,210,000 Broward County,
Florida, Airport
Authority, Series D,
AMT, (AMBAC Insured),
4.000% 10/01/97...... Aaa AAA $ 1,211,404
750,000 Broward County,
Florida, Gas Tax
Revenue,
6.000% 09/01/99...... A1 AA- 781,463
1,000,000 Broward County,
Florida, GO, Series
C,
6.200% 01/01/07...... Aa AA 1,062,160
500,000 Broward County,
Florida, Solid Waste
Revenue, (MBIA
Insured),
5.500% 07/01/04...... Aaa AAA 519,770
1,000,000 Clearwater, Florida,
Water and Sewer
Authority Revenue,
(AMBAC Insured),
5.000% 12/01/02...... Aaa AAA 1,016,910
1,000,000 Dade County, Florida,
Aviation Facility
Revenue, Series B,
AMT,
6.300% 10/01/05...... Aaa AAA 1,091,050
1,650,000 Dade County, Florida,
School District
Revenue Refunding,
(AMBAC Insured),
5.000% 07/15/01...... Aaa AAA 1,679,403
1,000,000 Delray Beach, Florida,
Water and Sewer
Authority Revenue,
Series A, Refunding,
(AMBAC Insured),
5.000% 10/01/03...... Aaa AAA 1,011,180
1,565,000 Dunes, Florida,
Community Development
District Revenue,
(Intercoastal Water
Way Bridge),
5.300% 10/01/03...... NR BBB 1,571,354
Florida State Board of
Education, GO,
Capital Outlay,
Public Education,
Series A:
1,000,000 Refunding,
5.000% 06/01/08...... Aa AA 978,320
1,500,000 Unrefunded Balance,
7.250% 06/01/23...... Aa AA 1,652,715
1,500,000 Florida State Division
Bond, Financial
Department of General
Service Revenue,
Preservation
Authority, (MBIA
Insured),
5.800% 07/01/01...... Aaa AAA 1,577,250
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
Florida State Housing
Finance Agency,
Refunding:
$2,000,000 Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/03...... NR BBB+ $ 2,068,600
1,000,000 Multi-family Housing
Revenue, (Andover
Project), Series E,
6.350% 05/01/26...... NR BBB+ 1,008,910
1,000,000 (The Vinyards Project),
Series H,
6.400% 11/01/15...... NR BBB+ 1,003,080
750,000 Florida State Municipal
Power Agency, GO,
(St. Lucie Project),
(FGIC Insured),
5.600% 10/01/07...... Aaa AAA 767,070
525,000 Florida State Sunshine
Skyway Revenue,
6.100% 07/01/00...... A A 552,552
1,000,000 Florida State Turnpike
Authority Revenue,
Department of
Transportation,
7.350% 07/01/98...... A1 NR 1,052,410
1,000,000 Fort Lauderdale,
Florida, Water and
Sewer Authority
Revenue,
5.500% 09/01/01...... NR AAA 1,043,650
1,375,000 Hialeah, Florida,
Capital Improvement
Revenue,
5.500% 10/01/18...... Baa1 NR 1,283,672
1,000,000 Hillsborough County,
Florida, Capital
Improvement Program,
Revenue Refunding,
(County Center
Project), Series B,
(MBIA Insured),
5.000% 07/01/11...... Aaa AAA 946,930
2,640,000 Hillsborough County,
Florida,
Environmentally
Sensitive Lands,
6.250% 07/01/06...... Aaa AAA 2,824,879
2,000,000 Hillsborough County,
Florida, Utility
Refunding Revenue,
Capital Appreciation,
Series A, (MBIA-IBC
Insured),
Zero coupon
08/01/99+............ Aaa AAA 1,764,820
1,500,000 Indian River County,
Florida, School
District, (FSA
Insured),
5.000% 04/01/03...... Aaa AAA 1,518,255
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 18
NATIONS FUND
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
Jacksonville, Florida,
Electric Authority
Revenue Refunding,
4th Series, St.
John's River
Authority:
$1,000,000 Series 6B,
6.650% 10/01/02...... Aa1 AA $ 1,082,860
1,000,000 Series 10,
4.600% 10/01/00...... Aa1 AA 1,003,620
1,000,000 Jacksonville, Florida,
Excise Tax Revenue
Refunding, Series A,
(FGIC Insured),
5.000% 10/01/09...... Aaa AAA 967,510
750,000 Manatee County,
Florida, Public
Utilities Revenue,
Series A, (MBIA
Insured),
6.250% 10/01/00...... Aaa AAA 798,150
500,000 Miami Beach, Florida,
GO, (FGIC Insured),
5.300% 09/01/03...... Aaa AAA 515,145
Orange County, Florida,
Health Facilities
Authority Revenue:
1,375,000 (Lakeside Alternatives
Inc.),
6.250% 07/01/05........ NR BBB 1,409,265
1,000,000 (Orlando Regional
Medical Center
Hospital), (MBIA
Insured), 4.400%
10/01/02............. Aaa AAA 977,820
2,000,000 Orlando and Orange
County, Florida,
Expressway Authority
Revenue Refunding,
6.500% 07/01/10...... Aaa AAA 2,219,640
1,300,000 Palm Beach County,
Florida, GO,
7.000% 12/01/04...... Aa AA 1,484,678
1,000,000 Palm Beach County,
Florida, Housing
Finance Authority,
Series A,
6.300% 10/01/12...... Aaa NR 1,021,480
St. John's County,
Florida, Industrial
Development
Authority, Hospital
Revenue, (Flagler
Hospital Project):
850,000 5.700% 08/01/02........ A BBB+ 868,947
945,000 6.000% 08/01/08........ A BBB+ 953,722
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,230,000 South Broward, Florida,
Hospital District
Revenue Refunding,
(AMBAC Insured),
4.650% 05/01/00...... Aaa AAA $ 1,234,391
1,000,000 Tallahassee, Florida,
Health Facilities
Revenue, Memorial
Regional Medical
Center, Series A,
(MBIA Insured),
5.750% 12/01/04...... Aaa AAA 1,054,520
1,025,000 Venice, Florida, Health
Facilities Revenue
Refunding, (Venice
Hospital, Inc.
Project), 5.300%
12/01/02............. A NR 1,056,426
-----------
46,635,981
-----------
PUERTO RICO -- 6.0%
1,000,000 Commonwealth of Puerto
Rico, Public
Improvement, Series
A, GO, Pre-refunded,
7.750% 07/01/99...... NR AAA 1,104,660
1,000,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities, Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07...... NR BBB- 976,420
1,000,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.600% 05/01/14...... NR BBB 1,015,020
-----------
3,096,100
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $48,471,205).............. 49,732,081
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 19
NATIONS FUND
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MONEY MARKET FUND -- 2.2%
(Cost $1,162,000)
1,162,000 AIM Tax-Exempt Fund............. $ 1,162,000
==========
TOTAL INVESTMENTS
(Cost $49,633,205*)..................... 98.1% 50,894,081
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.9 969,758
---- -----------
NET ASSETS................................ 100.0% $51,863,839
==== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 4.622%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
IBC Insured Bond Certificate
MBIA Municipal Bond Investors Assurance
NR Not Rated
Nations Florida Intermediate Municipal Bond Fund had the
following insurance concentrations greater than 10% at
September 30, 1996 (as a percentage of net assets):
AMBAC 11.9%
MBIA 14.7%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 20
NATIONS FUND
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 98.1%
FLORIDA -- 95.4%
Alachua County,
Florida, Health
Facilities Authority
Revenue Refunding:
$1,000,000 (Santa Fe Healthcare
Facilities Project),
6.000% 11/15/09..... Baa1 BBB+ $ 1,041,000
1,000,000 (Shands Teaching
Hospitals and
Clinics Inc.
Project), Series A,
(MBIA Insured),
5.000% 12/01/04..... Aaa AAA 1,003,920
1,000,000 Canaveral, Florida,
Port Authority
Revenue Refunding,
Port Improvement,
Series B, (FGIC
Insured),
5.700% 06/01/13..... Aaa AAA 997,780
1,000,000 Citrus County,
Florida, PCR
Refunding, Crystal
River, (Florida
Power Corporation),
Series B,
6.350% 02/01/22..... A1 A+ 1,038,030
1,000,000 Dade County, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding,
(Baptist Hospital,
Miami Project),
Series A, (MBIA
Insured),
5.250% 05/15/21..... Aaa AAA 925,840
1,000,000 Dade County, Florida,
School District
Revenue Refunding,
Series A, GO, (MBIA
Insured),
6.125% 06/01/14..... Aaa AAA 1,044,010
1,500,000 Dade County, Florida,
Water and Sewer
System Revenue
Refunding, (FGIC
Insured),
5.000% 10/01/13..... Aaa AAA 1,394,340
1,000,000 Escambia County,
Florida, PCR,
(Champion
International
Corporation
Project), AMT,
6.900% 08/01/22..... Baa1 BBB 1,050,860
Florida State Board of
Education, GO,
Capital Outlay,
Public Education:
1,000,000 Refunding, Series A,
5.000% 06/01/08..... Aa AA 978,320
1,000,000 Refunding, Series D,
5.125% 06/01/18..... Aa AA 919,560
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
Florida State Board of
Education, GO,
Capital Outlay,
Public Education
(continued):
$1,000,000 Unrefunded Balance,
Series A,
7.250% 06/01/23..... Aa AA $ 1,101,810
Florida State Housing
Finance Agency,
Refunding:
1,000,000 Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/03..... NR BBB+ 1,034,300
915,000 Single-family
Mortgage, Series B,
AMT, (GNMA/FNMA
Insured),
6.550% 07/01/17..... Aaa AAA 939,412
500,000 (The Vinyards
Project), Series H,
6.500% 11/01/25..... NR BBB+ 502,710
1,000,000 Florida State
Municipal Power
Agency Revenue,
(Stanton II
Project),
Pre-refunded, (AMBAC
Insured),
6.500% 10/01/02..... Aaa AAA 1,110,000
1,000,000 Florida State Turnpike
Authority Revenue,
Department of
Transportation,
Series A, (FGIC
Insured),
5.500% 07/01/11..... Aaa AAA 998,910
1,000,000 Hillsborough County,
Florida, Industrial
Development
Authority, PCR,
(Tampa Electric
Company Project),
8.000% 05/01/22..... Aa3 AA 1,160,680
1,000,000 Hillsborough County,
Florida, Utility
Refunding Revenue,
(MBIA Insured),
5.500% 08/01/12..... Aaa AAA 991,580
1,285,000 Jacksonville, Florida,
Electric Authority
Revenue Refunding,
St. John's River
Authority, Issue 2,
Series 9,
5.250% 10/01/21..... Aa1 AA 1,192,313
1,000,000 Jacksonville, Florida,
Excise Tax Revenue
Refunding, Series A,
(FGIC Insured),
5.000% 10/01/16..... Aaa AAA 920,450
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 21
NATIONS FUND
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000,000 Jacksonville, Florida,
PCR Refunding,
(Anheuser-Busch
Companies Project),
5.700% 08/01/31..... A1 AA- $ 979,160
1,000,000 Martin County,
Florida, Industrial
Development
Authority Revenue,
(Indiantown
Cogeneration
Project), Series A,
AMT,
7.875% 12/15/25..... Baa3 BBB- 1,128,280
1,000,000 North Broward,
Florida, Hospital
Revenue, (MBIA
Insured),
6.250% 01/01/06..... Aaa AAA 1,063,850
1,000,000 Orange County,
Florida, Health
Facilities Authority
Revenue Refunding,
(Orlando Regional
Medical Center
Hospital), Series B,
(MBIA Insured),
5.000% 10/01/10..... Aaa AAA 948,810
1,000,000 Orange County,
Florida, Sales Tax
Revenue, Series B,
5.375% 01/01/24..... A1 A+ 940,750
1,000,000 Orange County,
Florida, Tourist
Development Tax
Revenue, Series B,
(MBIA Insured),
6.000% 10/01/14..... Aaa AAA 1,029,540
1,000,000 Osceola County,
Florida, Health
Facilities Authority
Revenue Refunding,
Lutheran Good
Samaritan Society,
(AMBAC Insured),
6.000% 05/01/10..... Aaa AAA 1,030,050
1,500,000 Palm Beach County,
Florida, Health
Facilities Authority
Revenue, (Good
Samaritans Health
System),
6.200% 10/01/11..... NR A+ 1,531,080
1,000,000 Palm Beach County,
Florida, Housing
Finance Authority,
Single-family
Mortgage Purchase
Revenue, Series A,
(GNMA/FNMA Insured),
6.500% 10/01/21..... Aaa NR 1,026,080
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000,000 St. Petersburg,
Florida, Excise Tax
Revenue Refunding,
(FGIC Insured),
5.000% 10/01/16..... Aaa AAA $ 915,980
2,000,000 South Broward,
Florida, Hospital
District Revenue
Refunding, (FSA
Insured),
5.500% 05/01/28..... Aaa AAA 1,894,100
Venice, Florida,
Health Facilities
Revenue Refunding,
(Venice Hospital,
Inc. Project):
900,000 5.600% 12/01/05....... A NR 952,173
1,000,000 5.700% 12/01/06....... A NR 1,063,230
1,000,000 Volusia County,
Florida, Educational
Facilities Authority
Revenue, Series A,
6.125% 10/15/26..... Baa NR 1,007,590
-----------
35,856,498
-----------
PUERTO RICO -- 2.7%
1,000,000 Puerto Rico, Housing,
Bank and Finance
Agency,
Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage-Portfolio
I), AMT, (GNMA/
FNMA/FHLMC
Collateral),
6.250% 04/01/29..... Aaa AAA 1,014,600
-----------
TOTAL INVESTMENTS
(Cost $35,931,442*)..................... 98.1% 36,871,098
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.9 719,141
---- -----------
NET ASSETS................................ 100.0% $37,590,239
==== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
Nations Florida Municipal Bond Fund had the following
insurance concentrations greater than 10% at September 30,
1996 (as a percentage of net assets):
FGIC 13.9%
MBIA 18.6%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 22
NATIONS FUND
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 97.8%
GEORGIA -- 97.8%
Alpharetta, Georgia, GO:
$ 500,000 6.100% 05/01/04......... Aa AA- $ 539,580
85,000 Refunding, Series B,
5.150% 11/01/05....... Aa AA- 86,290
1,000,000 Atlanta, Georgia,
Airport Facilities
Revenue Refunding,
(AMBAC Insured),
6.000% 01/01/03......... Aaa AAA 1,061,860
1,000,000 Atlanta, Georgia,
Downtown Development
Authority Revenue
Refunding,
(Underground Atlanta
Project),
6.250% 10/01/12....... Aa AA 1,041,920
40,000 Atlanta, Georgia, Urban
Residential Finance
Authority, Dormitory
Facilities Revenue
Refunding, (Morehouse
College Project),
(MBIA Insured),
5.350% 12/01/05....... Aaa AAA 40,840
1,000,000 Atlanta, Georgia, Water
and Sewer Authority
Revenue Refunding,
5.000% 01/01/15....... Aa AA- 919,000
Atlanta and Fulton
Counties, Georgia,
Recreation Authority
Revenue Refunding,
(Atlanta Zoo Project):
1,000,000 5.850% 12/01/00......... Aa AA 1,047,250
500,000 6.050% 12/01/02......... Aa AA 533,270
25,000 Bibb County, Georgia,
School District, GO,
4.950% 01/01/02....... A1 AA 25,217
100,000 Brunswick, Georgia,
Water and Sewer
Revenue Refunding and
Improvement, (MBIA
Insured),
6.000% 10/01/11....... Aaa AAA 106,009
1,000,000 Burke County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation), Series
B,
4.350% 01/01/01....... NR A+ 980,480
560,000 Cartersville, Georgia,
School District, GO,
6.150% 01/01/03....... A A 597,570
Cherokee County,
Georgia, School System
Revenue, GO:
100,000 4.600% 02/01/01......... A1 NR 99,761
40,000 4.800% 02/01/03......... A1 NR 39,868
1,000,000 (AMBAC Insured), 5.875%
02/01/09.............. Aaa AAA 1,048,270
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$1,000,000 Clarke County, Georgia,
School District
Refunding, GO, (FGIC
Insured),
5.100% 07/01/04....... Aaa AAA $ 1,012,700
Clayton County, Georgia,
Water and Sewer
Authority Revenue:
585,000 6.400% 05/01/04......... A1 A+ 631,847
1,000,000 (MBIA Insured),
5.400% 05/01/07....... Aaa AAA 1,008,420
1,000,000 Cobb County, Georgia,
Detention Buildings
and Facilities, GO,
5.300% 01/01/08....... Aaa AA+ 1,004,420
1,000,000 Cobb County, Georgia,
Kennestone Hospital
Authority Revenue,
Series A,
5.700% 04/01/06....... Aa AA 1,033,240
Cobb County, Georgia,
Water and Sewer
Authority, Revenue
Refunding,
Series A:
685,000 4.400% 07/01/99......... Aa AA- 685,664
70,000 4.900% 07/01/03......... Aa1 AA 70,395
75,000 Cobb-Marietta, Georgia,
Coliseum and Exhibit
Hall Authority Revenue
Refunding, (MBIA
Insured), 6.750%
10/01/26.............. Aaa AAA 83,114
750,000 Columbus, Georgia, Water
and Sewer Authority
Revenue Refunding,
Series 1992, (FGIC
Insured),
6.000% 05/01/03....... Aaa AAA 798,532
1,000,000 Dalton, Georgia,
Building Authority
Revenue, 5.000%
07/01/02.............. A1 NR 1,011,880
DeKalb County, Georgia,
School District, GO:
1,435,000 5.000% 07/01/03......... Aa AA 1,451,287
1,000,000 Series A,
4.250% 07/01/99....... Aa AA 997,120
100,000 DeKalb County, Georgia,
Water and Sewer
Revenue,
5.125% 10/01/14....... Aa AA 95,091
Fayette County, Georgia,
School District, GO,
Series 1992:
1,000,000 5.200% 03/01/00......... Aa A+ 1,021,280
500,000 (FGIC Insured),
6.000% 09/01/02....... Aaa AAA 531,900
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 23
NATIONS FUND
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 750,000 Forsyth County, Georgia,
School District, GO,
6.400% 07/01/05....... A1 A+ $ 820,845
Fulco, Georgia, Hospital
Authority Revenue,
Revenue Anticipation
Certificates:
1,000,000 Georgia Baptist
Healthcare, Series A,
6.000% 09/01/03....... Baa1 NR 1,002,740
1,000,000 St. Joseph's Hospital,
4.900% 10/01/03....... A A 984,650
1,000,000 Fulton and DeKalb
Counties, Georgia,
Hospital Authority
Revenue Refunding,
(MBIA Insured), 5.250%
01/01/04.............. Aaa AAA 1,011,330
1,025,000 Fulton County, Georgia,
Building Authority
Revenue, (County
Government and Health
Facilities Project),
Series A,
5.700% 01/01/04....... Aaa AAA 1,071,279
1,105,000 Fulton County, Georgia,
Development Authority
Revenue, (Clark
Atlanta University
Project), (Connie Lee
Insured), 5.100%
01/01/05.............. Baa AAA 1,084,646
Fulton County, Georgia,
School District, GO:
1,000,000 7.500% 01/01/02......... Aa AA 1,126,660
50,000 5.625% 01/01/21......... Aa AA 49,441
1,300,000 Fulton County, Georgia,
Water and Sewer
Authority Revenue
Refunding, (FGIC
Insured),
5.100% 01/01/98....... Aaa AAA 1,316,276
65,000 Gainesville and Hall
Counties, Georgia,
Hospital Authority
Revenue, Anticipation
Certificates,
(Northeast Georgia
Healthcare Project),
(MBIA Insured),
5.300% 10/01/05....... Aaa AAA 65,976
Georgia State, GO:
1,500,000 Series A, 6.250%
03/01/06.............. Aaa AA+ 1,637,055
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
Georgia State, GO
(continued):
$2,250,000 Series C, 6.500%
07/01/05.............. Aaa AA+ $ 2,500,155
1,000,000 Series D,
6.800% 08/01/99....... Aaa AA+ 1,066,110
Georgia State, Housing
and Finance Authority
Revenue,
(Homeownership
Opportunity Program),
(FHA/VA/Private
Mortgages Insured):
750,000 Program A-1
6.700% 12/01/12....... Aa NR 790,282
1,000,000 Series B,
6.600% 12/01/25....... Aa AA+ 1,023,670
1,500,000 Georgia State Municipal
Gas Authority, Gas Tax
Revenue, (Southern
Storage Gas Project),
6.000% 07/01/04....... NR A- 1,594,800
60,000 Georgia State, Revenue
Refunding, Series E,
GO,
4.750% 07/01/05....... Aaa AA+ 59,068
2,000,000 Georgia State Tollway
Authority Revenue,
(Georgia 400 Project),
6.375% 07/01/02....... Aaa AA+ 2,175,380
Gwinnett County,
Georgia, School
District, GO:
500,000 Series A,
6.000% 02/01/02....... Aa1 AA 531,055
1,000,000 Series B, Refunding,
6.000% 02/01/01....... Aa1 AA 1,055,600
40,000 Gwinnett County,
Georgia, Water and
Sewer Revenue
Refunding, 4.600%
08/01/00.............. Aa1 AA+ 40,137
Hall County, Georgia,
School District, GO:
1,000,000 (AMBAC Insured), 6.700%
12/01/14.............. Aaa AAA 1,104,810
750,000 Series B, Refunding,
6.000% 12/01/03....... A NR 800,243
1,000,000 Macon, Georgia, Water
and Sewer Authority
Revenue Refunding,
Series A,
4.700% 10/01/04....... A1 A+ 978,090
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 24
NATIONS FUND
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 35,000 Macon-Bibb Counties,
Georgia, Industrial
Development Authority
Revenue Refunding,
(Parking Facilities
Project),
6.950% 08/01/03....... A1 AA $ 38,318
Metropolitan Atlanta
Rapid Transit
Authority (MARTA),
Georgia, Sales Tax
Revenue Refunding:
40,000 7.000% 07/01/11......... Aaa AAA 46,005
50,000 Second Indenture Series,
Series A, (AMBAC
Insured),
4.900% 07/01/01....... Aaa AAA 50,503
1,000,000 Series M,
6.150% 07/01/02....... A1 NR 1,062,940
Series P, (AMBAC Insured
500,000 5.800% 07/01/02......... Aaa AAA 526,630
1,000,000 5.900% 07/01/03......... Aaa AAA 1,060,120
Monroe County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation):
500,000 6.050% 01/01/02......... A3 A+ 523,475
1,000,000 6.800% 01/01/12......... A3 A+ 1,110,980
500,000 Municipal Electric
Authority of Georgia,
Special Obligation
Bonds, First
Crossover, General
Resolution, 6.500%
01/01/12.............. A A 540,875
1,100,000 Paulding County,
Georgia, School
District, GO, Series
A,
6.400% 02/01/04....... A A 1,185,118
Private Colleges and
Universities
Facilities Authority
Revenue, Georgia:
25,000 (Agnes Scott College
Project),
4.650% 06/01/02....... Aa AA- 24,908
1,400,000 (Emory University
Project), Series C,
5.750% 10/01/02....... Aa1 AA 1,471,638
1,000,000 (Spellman College
Project), (FGIC
Insured),
4.850% 06/01/98....... Aaa AAA 1,010,800
1,000,000 Richmond County,
Georgia, Board of
Education, GO, (FGIC
Insured),
4.700% 11/01/06....... Aaa AAA 953,390
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 85,000 Roswell, Georgia, GO,
5.150% 02/01/05....... Aa AA $ 86,028
1,250,000 Savannah, Georgia,
Hospital Authority
Revenue Refunding and
Improvement, (Candler
Hospital Project),
7.000% 01/01/11....... Baa BBB+ 1,291,112
750,000 Savannah, Georgia,
Resource Recovery
Development Authority,
Revenue Refunding,
(Savannah Energy
Systems Company
Project),
5.850% 12/01/01....... A1 A+ 778,665
630,000 Spalding County,
Georgia, Water and
Sewer Authority
Revenue, (MBIA
Insured), 6.000%
09/01/03.............. Aaa AAA 672,128
500,000 Warner Robbins, Georgia,
Water and Sewer
Authority, Revenue
Refunding, (MBIA
Insured),
6.000% 07/01/02....... Aaa AAA 531,095
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $54,776,321)............. 56,459,101
==========
</TABLE>
<TABLE>
<CAPTION>
SHARES
<C> <S> <C> <C> <C>
---------
MONEY MARKET FUND -- 1.1%
(Cost $615,000)
615,000 AIM Tax-Exempt Fund.............. 615,000
==========
TOTAL INVESTMENTS
(Cost $55,391,321*)..................... 98.9% 57,074,101
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.1 636,797
---- -----------
NET ASSETS................................ 100.0% $57,710,898
==== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
<TABLE>
<S> <C>
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 25
NATIONS FUND
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 93.4%
GEORGIA -- 90.0%
$ 500,000 Appling County,
Georgia, Development
Authority, PCR,
(Oglethorpe Power
Corporation
Plant-Hatch Project),
5.250% 01/01/13...... A3 A+ $ 476,315
500,000 Atlanta, Georgia, Water
and Sewer Authority
Revenue Refunding,
5.000% 01/01/15...... Aa AA- 459,500
500,000 Clayton County,
Georgia, Housing
Authority,
Multi-family Housing
Revenue, (Advantages
of Atlanta Apartments
Project),
5.700% 12/01/16...... NR AAA 494,055
500,000 Columbia County,
Georgia, School
District, Series B,
(MBIA Insured),
6.250% 04/01/13...... Aaa AAA 528,225
500,000 Columbus, Georgia,
Water and Sewer
Authority Revenue
Refunding,
5.700% 05/01/20...... A A+ 494,855
850,000 Coweta County, Georgia,
Development
Authority, Industrial
Development Revenue,
(Sivaco National Wire
Project), AMT,
5.400% 02/01/09...... A NR 798,022
225,000 Douglasville-Douglas
County, Georgia,
Water and Sewer
Authority Revenue
Refunding, (AMBAC
Insured),
5.625% 06/01/15...... Aaa AAA 227,189
500,000 Fayette County,
Georgia, School
District, GO,
6.125% 03/01/15...... Aa A+ 518,985
1,000,000 Fulco, Georgia,
Hospital Authority
Revenue, Revenue
Anticipation
Certificates, St.
Joseph's Hospital,
5.500% 10/01/14...... A A 964,590
Georgia State, GO:
750,000 Series C,
6.500% 07/01/05...... Aaa AA+ 833,385
500,000 Series E,
5.500% 07/01/07...... Aaa AA+ 515,935
215,000 Georgia State, Housing
and Finance Authority
Revenue,
(Homeownership
Opportunity Program),
Program A-1,
(FHA/VA/Private
Mortgages Insured),
6.700% 12/01/12...... Aa NR 226,548
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 500,000 Gwinnett County,
Georgia, School
District, GO, Series
A,
5.125% 02/01/10...... Aa1 AA $ 486,130
500,000 Gwinnett County,
Georgia, Water and
Sewer Revenue
Refunding,
4.900% 08/01/06...... Aa1 AA+ 489,885
500,000 Macon, Georgia, Water
and Sewer Authority
Revenue, Series B,
5.000% 10/01/16...... A1 A+ 457,430
1,000,000 Municipal Electric
Authority of Georgia,
Special Obligation
Bonds, First
Crossover, General
Resolution,
6.500% 01/01/12...... A A 1,081,750
500,000 Peach County, Georgia,
School District, GO,
(MBIA Insured),
6.500% 02/01/08...... Aaa AAA 554,650
1,000,000 Roswell, Georgia, GO,
5.600% 02/01/10...... Aa AA 1,013,230
Savannah, Georgia,
Hospital Authority
Revenue Refunding and
Improvement:
500,000 (Candler Hospital
Project),
7.000% 01/01/23...... Baa BBB+ 514,835
450,000 (St. Joseph's Hospital
Project),
6.125% 07/01/12...... A NR 463,302
500,000 Savannah, Georgia,
Water and Sewer
Revenue Refunding and
Improvement,
5.100% 12/01/10...... A1 AA- 481,885
500,000 Union County, Georgia,
Housing Authority,
Multi-family Housing
Revenue Refunding,
(Hidden Lake
Apartments), Series
A, (FHA/FNMA
Insured),
7.125% 12/01/25...... Aaa NR 528,645
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 26
NATIONS FUND
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 570,000 White County, Georgia,
Industrial
Development Authority
Revenue Refunding,
(Clark- Schwebel
Fiber and Glass
Company Project),
6.850% 06/01/10...... NR BBB+ $ 594,573
-----------
13,203,919
-----------
PUERTO RICO -- 3.4%
500,000 Puerto Rico Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage-Portfolio
I), AMT, (GNMA/
FNMA/FHLMC
Collateral),
6.100% 10/01/15...... Aaa AAA 505,015
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $13,465,426)............ 13,708,934
==========
<CAPTION>
SHARES VALUE
(NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUNDS -- 5.2%
722,000 AIM Tax-Exempt Fund............. $ 722,000
37,000 Nuveen Tax-Free Money Market
Fund.......................... 37,000
-----------
TOTAL MONEY
MARKET FUNDS
(Cost $759,000)............... 759,000
===========
TOTAL INVESTMENTS
(Cost $14,224,426*)..................... 98.6% 14,467,934
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.4 200,389
----- -----------
NET ASSETS................................ 100.0% $14,668,323
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 27
NATIONS FUND
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.6%
MARYLAND -- 97.1%
Anne Arundel County,
Maryland,
Consolidated Public
Improvement Revenue,
GO:
$1,500,000 5.500% 07/15/00...... Aa1 AA+ $ 1,554,285
1,000,000 6.200% 04/15/03...... Aa1 AA+ 1,074,750
1,000,000 5.125% 07/15/08...... Aa1 AA+ 987,300
800,000 Baltimore, Maryland,
GO, Series A, ETM,
(MBIA Insured),
9.000% 10/15/98...... Aaa AAA 875,080
1,750,000 Baltimore, Maryland,
Port Facilities
Revenue, Consolidated
Coal Sales, Series
85,
6.500% 12/01/10...... Aa3 AA- 1,897,298
1,000,000 Baltimore, Maryland,
Wastewater Systems,
GO, (MBIA Insured),
5.100% 07/01/04...... Aaa AAA 1,013,980
Baltimore County,
Maryland,
Consolidated Public
Improvement, Revenue
Refunding:
1,000,000 5.900% 03/01/98...... Aaa AAA 1,025,430
1,000,000 6.100% 07/01/01...... Aaa AAA 1,067,700
1,000,000 Series A, (AMBAC
Insured),
5.300% 10/15/06...... Aaa AAA 1,008,150
1,075,000 Series C, (FGIC
Insured),
6.375% 10/15/07...... Aaa AAA 1,188,638
Baltimore County,
Maryland,
Metropolitan District
Special Assignment
Refunding, GO:
1,375,000 5.750% 05/01/02...... Aaa AAA 1,449,978
1,000,000 5.800% 05/01/03...... Aaa AAA 1,059,900
610,000 Bel Air, Maryland,
Industrial
Development Revenue,
(May Department
Stores Company
Project), Refunding,
6.375% 10/01/99...... NR A 632,136
Calvert County,
Maryland,
Consolidated Public
Improvement Revenue
Refunding, GO:
1,000,000 4.400% 07/15/02...... Aa A+ 979,230
2,000,000 4.625% 07/15/05...... Aa A+ 1,926,360
Carroll County,
Maryland,
Consolidated Public
Improvement Revenue,
GO:
1,350,000 6.000% 11/01/00...... Aa AA 1,425,789
500,000 6.900% 10/01/02...... Aaa AA 549,945
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
Cecil County, Maryland,
Revenue Refunding,
Consolidated Public
Improvement, GO,
(FGIC Insured):
$1,000,000 5.300% 12/01/00...... Aaa AAA $ 1,028,890
2,000,000 4.800% 12/01/04...... Aaa AAA 1,977,800
Charles County,
Maryland,
Consolidated Public
Improvement, Revenue
Refunding, GO:
3,400,000 4.400% 06/01/03...... Aa AA- 3,303,678
Pre-refunded:
1,000,000 6.375% 12/01/99...... Aaa AA- 1,076,730
750,000 6.450% 06/01/01...... Aaa AA- 819,780
2,000,000 Frederick County,
Maryland,
Consolidated Public
Improvement, Revenue
Refunding, GO, (FGIC
Insured),
5.750% 12/01/01...... Aaa AAA 2,101,800
1,000,000 Frederick County,
Maryland, GO, Series
B,
6.300% 07/01/06...... Aa AA- 1,083,440
600,000 Harford County,
Maryland, GO,
Pre-refunded,
6.100% 12/01/00...... Aaa AAA 646,386
1,455,000 Harford County,
Maryland, Public
Improvement Revenue,
GO,
5.300% 09/01/03...... Aa AA- 1,498,214
1,000,000 Howard County,
Maryland,
Metropolitan
District, GO, Series
B,
6.000% 08/15/03...... Aaa AA+ 1,074,950
605,000 Laurel, Maryland, GO,
Series A, (MBIA
Insured),
6.300% 07/01/00...... Aaa AAA 643,242
500,000 Maryland-National
Capital Park and
Planning Commission,
(Prince Georges
County), GO, Series
J-2, Pre-refunded,
6.900% 07/01/00...... Aa AA 549,065
700,000 Maryland State,
Community Development
Administration
Revenue, (Single-
family Housing
Project), 1st Series,
(FHA/VA/Private
Mortgages Insured),
6.000% 04/01/97...... Aa NR 704,886
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 28
NATIONS FUND
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,000,000 Maryland State, GO,
Third Series,
Pre-refunded,
6.800% 07/15/00...... Aaa AAA $ 1,092,300
Maryland State, Health
and Higher Education
Facilities Authority
Revenue:
Howard County General
Hospital:
1,000,000 5.125% 07/01/03...... Baa1 BBB 983,580
1,000,000 5.500% 07/01/13...... Baa1 BBB 931,030
1,000,000 Northwest Hospital
Center, (AMBAC
Insured),
5.250% 07/01/13...... Aaa AAA 960,090
500,000 Sinai Hospital, Pre-
refunded, (AMBAC
Insured),
7.300% 07/01/05...... Aaa AAA 556,445
The Johns Hopkins
Hospital:
700,000 7.000% 07/01/00...... Aa AA- 748,958
1,500,000 5.500% 07/01/07...... Aa AA- 1,524,855
Refunding,
500,000 5.000% 07/01/23...... Aa AA- 445,310
1,000,000 University of Maryland
Medical Center, (FGIC
Insured),
5.200% 07/01/04...... Aaa AAA 1,015,210
Maryland State,
Transportation
Authority Revenue,
GO:
1,250,000 6.100% 09/01/01...... Aa AA 1,324,800
3,235,000 4.375% 12/15/03...... Aa AA 3,132,677
1,000,000 Pre-refunded,
6.500% 07/15/98...... Aaa AAA 1,052,880
Maryland State,
Transportation
Authority, Special
Obligation Revenue:
1,000,000 6.000% 07/01/97...... A1 A+ 1,016,020
2,790,000 (Baltimore-Washington
International Airport
Project), Series A,
AMT, (FGIC Insured),
6.400% 07/01/19...... Aaa AAA 2,874,091
1,005,000 Maryland Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series A,
6.650% 09/01/98...... Aa AA 1,052,175
Montgomery County,
Maryland,
Consolidated Public
Improvement Revenue,
GO: Series A:
1,000,000 6.900% 04/01/00...... Aaa AAA 1,079,400
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
Montgomery County,
Maryland,
Consolidated Public
Improvement Revenue,
GO (continued):
Series A (continued):
$1,000,000 4.900% 10/01/07...... Aaa AAA $ 977,390
1,000,000 5.000% 10/01/11...... Aaa AAA 967,210
500,000 Pre-refunded,
6.700% 04/01/01...... Aaa AAA 550,675
1,575,000 Montgomery County,
Maryland, Parking
Revenue, Bethesda
Parking Lot District,
Series A, (FGIC
Insured),
5.700% 06/01/00...... Aaa AAA 1,636,551
1,000,000 Montgomery County,
Maryland, Rockville,
GO, Pre-refunded,
6.125% 10/01/01...... Aaa AAA 1,083,160
Northeast Maryland,
Solid Waste Disposal
Authority Revenue
Refunding, (Southwest
Resource Recovery
Facility Project),
(MBIA Insured):
2,000,000 6.900% 01/01/00...... Aaa AAA 2,133,700
1,535,000 7.000% 01/01/01...... Aaa AAA 1,664,585
630,000 Ocean City, Maryland,
GO, Pre-refunded,
(MBIA Insured),
6.100% 11/01/01...... Aaa AAA 682,208
Prince Georges County,
Maryland,
Consolidated Public
Improvement Revenue,
GO:
1,000,000 6.500% 07/01/02...... A1 AA- 1,084,480
1,000,000 5.600% 01/15/03...... A1 AA- 1,037,970
1,000,000 Prince Georges County,
Maryland, GO, Series
A, (MBIA Insured),
5.400% 03/01/02...... Aaa AAA 1,034,070
Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority Revenue
Refunding, (FSA
Insured):
800,000 6.600% 06/30/00...... Aaa AAA 856,912
2,000,000 5.100% 06/15/05...... Aaa AAA 1,985,980
1,000,000 Rockville, Maryland,
GO,
4.750% 04/15/05...... Aa1 AA+ 982,770
1,000,000 St. Mary's County,
Maryland, GO,
(MBIA Insured),
5.700% 03/01/08...... Aaa AAA 1,032,790
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 29
NATIONS FUND
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
University of Maryland,
Auxiliary Facilities
and Tuition Revenue:
Series A:
$ 745,000 6.000% 02/01/04...... Aa AA+ $ 791,697
1,000,000 6.300% 02/01/08...... Aa AA+ 1,075,110
1,000,000 6.300% 02/01/10...... Aa AA+ 1,064,970
1,000,000 Series C,
4.900% 10/01/08...... Aa AA+ 962,570
1,000,000 Washington County,
Maryland,
Consolidated Public
Improvement Revenue,
GO, (FGIC Insured),
5.250% 01/01/06...... Aaa AAA 1,013,280
Washington County,
Maryland, GO:
500,000 6.400% 12/01/00...... A1 A+ 528,150
1,000,000 Series F, (FGIC
Insured),
5.250% 01/01/06...... Aaa AAA 1,013,280
1,000,000 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply Revenue,
GO,
5.000% 06/01/03...... Aa1 AA 1,012,370
-----------
81,186,509
-----------
DISTRICT OF COLUMBIA -- 1.2%
1,000,000 Washington, D.C.
Metropolitan Area
Transportation
Authority Revenue
Refunding,
(FGIC Insured),
4.400% 01/01/00...... Aaa AAA 996,880
-----------
GUAM -- 0.3%
250,000 Government of Guam, GO,
Series A,
5.200% 11/15/08...... NR BBB 235,803
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $80,512,811)............ 82,419,192
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
------------------------------------------------------------
MONEY MARKET FUND -- 0.2%
(Cost $173,000)
173,000 AIM Tax-Exempt................ $ 173,000
==========
TOTAL INVESTMENTS
(Cost $80,685,811*)..................... 98.8% 82,592,192
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.2 1,002,250
---- ----------
NET ASSETS................................ 100.0% $83,594,442
==== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
ETM Escrowed to Maturity
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
VA Veterans Administration
Nations Maryland Intermediate Municipal Bond Fund had the
following insurance concentrations greater than 10% at
September 30, 1996 (as a percentage of net assets):
FGIC 17.8%
MBIA 10.9%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 30
NATIONS FUND
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 98.1%
MARYLAND -- 69.3%
Anne Arundel County,
Maryland, Consolidated
Public Improvement
Revenue, GO:
$500,000 5.300% 04/01/10......... Aa1 AA+ $ 494,965
500,000 5.250% 07/15/11......... Aa1 AA+ 489,890
150,000 Baltimore, Maryland,
Consolidated Public
Improvement Revenue, GO,
AMT, Series B, (FGIC
Insured),
6.300% 10/15/08......... Aaa AAA 158,854
250,000 Baltimore, Maryland,
Convention Center
Revenue, (FGIC Insured),
6.150% 09/01/19......... Aaa AAA 256,915
250,000 Baltimore, Maryland, Port
Facilities Revenue,
Consolidated Coal Sales,
Series 85,
6.500% 12/01/10......... Aa3 AA- 271,042
300,000 Baltimore County,
Maryland, Mortgage
Revenue Refunding,
(Kingswood Common
III-A), (FHA Insured),
5.750% 11/01/20......... NR AAA 294,234
250,000 Cumberland, Maryland,
Refunding, GO, Series A,
(FGIC Insured),
5.250% 05/01/21......... Aaa AAA 236,152
400,000 Howard County, Maryland,
Special Facilities
Revenue, Series A,
6.000% 02/15/21......... Aa AA- 408,408
100,000 Maryland State, GO, Third
Series, Pre-refunded,
6.800% 07/15/00......... Aaa AAA 109,230
Maryland State, Health and
Higher Education
Facilities Authority
Revenue:
110,000 Anne Arundel Medical
Center, (AMBAC Insured),
5.250% 07/01/13......... Aaa AAA 105,610
100,000 Frederick Memorial
Hospital, (FGIC
Insured),
5.250% 07/01/13......... Aaa AAA 96,852
200,000 Greater Baltimore Medical
Center, (FGIC Insured),
5.000% 07/01/13......... Aaa AAA 186,226
290,000 Memorial Hospital of
Cumberland,
6.500% 07/01/10......... A A 301,214
Project and Refunding:
150,000 Doctors Community
Hospital,
5.750% 07/01/13......... Baa BBB- 139,556
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
Maryland State, Health and
Higher Education
Facilities Authority
Revenue (continued):
Project and Refunding
(continued):
$200,000 Peninsula Regional Medical
Center,
5.000% 07/01/08......... A A $ 190,910
Refunding, The Johns
Hopkins Hospital:
300,000 5.600% 07/01/09......... Aa AA- 300,753
500,000 5.000% 07/01/23......... Aa AA- 445,310
370,000 Maryland State, Industrial
Development Financing
Authority, (American
Center Physics
Headquarters),
6.375% 01/01/12......... NR BBB 379,006
500,000 Maryland State, Stadium
Authority, Lease
Revenue, (Ocean City
Convention Center),
5.375% 12/15/13......... Aa AA 496,905
220,000 Maryland State,
Transportation
Authority, Special
Obligation Revenue,
(Baltimore-Washington
International Airport
Project), Series A, AMT,
(FGIC Insured),
6.400% 07/01/19......... Aaa AAA 226,631
Maryland State,
Transportation Authority
Revenue, (Transportation
Facilities Project):
300,000 5.750% 07/01/15......... A1 A+ 300,261
500,000 6.800% 07/01/16......... Aaa AAA 555,265
Maryland Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series A:
250,000 5.400% 09/01/10......... Aa AA 248,490
200,000 6.550% 09/01/14......... Aa AA 214,228
250,000 Montgomery County,
Maryland, Housing
Opportunities
Commission, Multi-family
Mortgage Revenue, Series
A,
6.000% 07/01/14......... Aa NR 252,915
300,000 Northeast, Maryland, Solid
Waste Disposal Authority
Revenue, (Montgomery
County Project),
Series A, AMT,
6.300% 07/01/16......... A NR 302,976
500,000 Prince Georges County,
Maryland, PCR Refunding,
(Potomac Electric Power
Project),
5.750% 03/15/10......... A1 A 518,855
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 31
NATIONS FUND
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$175,000 Prince Georges County,
Maryland, Project and
Refunding Revenue,
(Dimensions Health
Corporation), GO,
5.375% 07/01/14......... A NR $ 165,694
500,000 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, (FSA
Insured),
5.200% 06/15/06......... Aaa AAA 496,125
500,000 Prince Georges County,
Maryland, Stormwater
Management, GO,
5.500% 03/15/13......... Aa AA 496,780
200,000 Washington County,
Maryland, Consolidated
Public Improvement
Revenue, GO, (MBIA
Insured),
5.800% 01/01/15......... Aaa AAA 203,442
320,000 Washington County,
Maryland, Sanitation
District Refunding, GO,
Series F, (FGIC
Insured),
5.000% 01/01/04......... Aaa AAA 321,328
-----------
9,665,022
-----------
DISTRICT OF
COLUMBIA -- 3.4%
Washington, D.C.,
Metropolitan Area
Transportation Authority
Revenue, Refunding,
(FGIC Insured):
100,000 4.900% 01/01/05......... Aaa AAA 98,778
350,000 6.000% 07/01/10......... Aaa AAA 370,864
-----------
469,642
-----------
GUAM -- 4.0%
600,000 Government of Guam, GO,
Series A,
5.200% 11/15/08......... NR BBB 565,926
-----------
OHIO -- 3.6%
500,000 Dayton, Ohio, Special
Facilities Revenue,
Series D, AMT,
6.200% 10/01/09......... NR BBB- 503,325
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 17.8%
$700,000 Commonwealth of Puerto
Rico, Highway and
Transportation
Authority, Highway
Revenue Refunding,
Series T, 6.500%
07/01/22................ NR AAA $ 775,327
Puerto Rico Electric Power
Authority, Power Revenue
Refunding:
200,000 Series U,
6.000% 07/01/14......... Baa1 BBB+ 200,270
500,000 Series Y, (MBIA Insured),
6.500% 07/01/06......... Aaa AAA 556,060
500,000 Puerto Rico Housing, Bank
and Finance Agency
Revenue, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage - Portfolio I),
AMT, (GNMA/FNMA/FHLMC
Collateral), 6.100%
10/01/15................ Aaa AAA 505,015
250,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities, Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07......... NR BBB- 244,105
200,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.600% 05/01/14......... NR BBB 203,004
-----------
2,483,781
-----------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $13,401,970)...................... 13,687,696
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 32
NATIONS FUND
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND -- 0.8%
(Cost $110,000)
110,000 AIM Tax-Exempt Fund.............. $ 110,000
===========
TOTAL INVESTMENTS
(Cost $13,511,970*)....................... 98.9% 13,797,696
OTHER ASSETS AND
LIABILITIES (NET)......................... 1.1 151,078
----- -----------
NET ASSETS.................................. 100.0% $13,948,774
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
<S> <C>
Nations Maryland Municipal Bond Fund had the following
insurance concentration greater than 10% at September 30,
1996 (as a percentage of net assets):
<S> <C>
FGIC 14.0%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 33
NATIONS FUND
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.2%
NORTH CAROLINA -- 78.7%
$1,000,000 Buncombe County, North
Carolina, GO,
5.000% 03/01/02...... Aa AA- $ 1,018,480
1,000,000 Charlotte, North
Carolina, COP,
(Convention
Facilities Project),
6.750% 12/01/21...... Aaa AAA 1,114,140
1,130,000 Charlotte, North
Carolina, Health Care
Systems Revenue,
Refunding,
Mecklenburg Hospital
Authority,
6.250% 01/01/20...... Aa AA 1,150,939
1,000,000 Charlotte, North
Carolina, Refunding,
GO,
4.500% 02/01/03...... Aaa AAA 987,480
1,000,000 Cleveland County, North
Carolina, GO, (FGIC
Insured),
5.100% 06/01/05...... Aaa AAA 1,011,810
500,000 Concord, North
Carolina, GO,
6.200% 06/01/05...... Aa A+ 537,495
1,000,000 Fayetteville, North
Carolina, Public
Works Commission
Revenue Refunding,
(FGIC Insured),
4.500% 03/01/04...... Aaa AAA 971,090
500,000 Gastonia, North
Carolina, Water
Revenue and Street
Improvement,
5.200% 04/01/02...... Aaa AAA 513,705
2,000,000 Greenville, North
Carolina, Combined
Enterprises Revenue,
6.000% 09/01/10...... A1 A+ 2,067,840
1,000,000 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Solid Waste Disposal,
(Champion
International
Corporation Project),
AMT,
5.500% 10/01/18...... Baa1 BBB 905,670
500,000 Henderson County, North
Carolina, School and
Community College,
GO,
6.500% 06/01/08...... A1 A+ 536,190
750,000 Lower Cape Fear, North
Carolina, Water and
Sewer Authority
Revenue, AMT,
5.200% 03/01/04...... A BBB 750,697
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 Martin County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority
Revenue,
8.500% 06/15/99...... A2 A $ 1,097,200
1,000,000 Mecklenberg County,
North Carolina,
Industrial Facilities
and Pollution Control
Finance Authority
Revenue Refunding,
(Fluor Corporation
Project),
5.250% 12/01/09...... NR A+ 986,380
1,000,000 Mecklenburg County,
North Carolina,
Pre-refunded, Public
Improvement,
Series B,
6.200% 04/01/01...... Aaa AAA 1,082,320
North Carolina Housing
Finance Agency,
Single-family
Housing, Series R:
865,000 6.350% 03/01/03...... Aa A+ 912,532
870,000 6.350% 09/01/03...... Aa A+ 905,444
1,000,000 North Carolina Medical
Care Commission,
Health Care
Facilities Revenue,
(Stanley Memorial
Hospital Project),
(AMBAC Insured),
5.250% 10/01/06...... Aaa AAA 999,230
North Carolina
Municipal Power
Agency, Refunding #1,
Catawba Electric
Revenue Refunding:
1,000,000 (FGIC Insured),
5.200% 01/01/00...... Aaa AAA 1,022,410
1,000,000 (FSA Insured),
5.500% 01/01/01...... Aaa AAA 1,030,050
1,000,000 North Carolina State,
Educational Authority
Revenue, AMT,
5.300% 07/01/03...... A NR 1,001,040
2,000,000 North Carolina State,
GO, Series A,
6.100% 03/01/01...... Aaa AAA 2,131,000
1,240,000 Pitt County, North
Carolina, Revenue,
5.375% 12/01/10...... Aa AA- 1,214,047
750,000 Rutherford County,
North Carolina, GO,
(MBIA Insured),
6.400% 06/01/01...... Aaa AAA 810,007
500,000 Union County, North
Carolina, School
District, GO,
5.800% 03/01/05...... A1 A+ 524,790
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 34
NATIONS FUND
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 University of North
Carolina, Revenue
Refunding, Utilities
Systems,
5.200% 08/01/06...... Aa AA $ 1,011,470
Wake County, North
Carolina, GO:
1,000,000 4.200% 04/01/98...... Aaa AAA 1,003,760
1,000,000 4.700% 04/01/05...... Aaa AAA 985,000
1,000,000 Wake County, North
Carolina, Public
Improvement Revenue,
GO,
4.600% 02/01/06...... Aaa AAA 965,320
1,200,000 Wayne County, North
Carolina, GO,
4.900% 04/01/05...... Aaa AAA 1,195,872
-----------
30,443,408
-----------
GUAM -- 7.5%
Government of Guam, GO,
Series A:
1,500,000 4.900% 09/01/97...... NR BBB 1,510,785
1,445,000 5.150% 11/15/07...... NR BBB 1,373,227
-----------
2,884,012
-----------
OHIO -- 2.6%
1,000,000 Dayton, Ohio, Special
Facilities Revenue,
Emery Air Freight
Corporation,
Series D,
6.200% 10/01/09...... NR BBB- 1,006,650
-----------
PUERTO RICO -- 4.3%
1,000,000 Puerto Rico Electric
Power Authority,
Power Revenue
Refunding, Series Y,
(MBIA Insured),
7.000% 07/01/07...... Aaa AAA 1,153,870
500,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.600% 05/01/14...... NR BBB 507,510
-----------
1,661,380
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 3.1%
$1,150,000 Washington State Public
Power Supply System,
Revenue Refunding,
(Nuclear Project
Number 2), Series A,
5.800% 07/01/07...... Aa AA $ 1,185,719
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $36,019,174)............ 37,181,169
==========
<CAPTION>
SHARES
- ---------
<S> <C> <C>
MONEY MARKET FUND -- 2.3%
(Cost $892,000)
892,000 AIM Tax-Exempt Fund............. 892,000
============
TOTAL INVESTMENTS
(Cost $36,911,174*)..................... 98.5% 38,073,169
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.5 591,935
---- -----------
NET ASSETS................................ 100.0% $38,665,104
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
COP Certificate of Participation
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 35
NATIONS FUND
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 98.7%
NORTH CAROLINA -- 96.7%
$1,000,000 Buncombe County, North
Carolina, Metropolitan
Sewer District, Sewer
System Revenue, Pre-
refunded, Series B,
6.750% 07/01/22....... Aaa NR $ 1,120,200
1,500,000 Charlotte, North
Carolina, Health Care
Systems Revenue
Refunding, Mecklenburg
Hospital Authority,
6.250% 01/01/20....... Aa AA 1,527,795
1,000,000 Craven County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
PCR, Refunding,
(Weyerhaeuser Company
Project),
6.350% 01/01/10....... NR A 1,052,290
1,000,000 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Solid Waste Disposal,
(Champion
International
Corporation Project),
AMT,
5.500% 10/01/18....... Baa1 BBB 905,670
2,000,000 Martin County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority
Revenue, Solid Waste
Disposal, AMT,
(Weyerhaeuser
Company),
5.650% 12/01/23....... A2 A 1,924,680
2,000,000 Mecklenburg County,
North Carolina,
Industrial Facilities
and Pollution Control
Finance Authority
Revenue Refunding,
(Fluor Corporation
Project),
5.250% 12/01/09....... NR A+ 1,972,760
Mecklenburg County,
North Carolina,
Refunding, GO:
1,000,000 5.400% 03/01/00....... Aaa AAA 1,032,030
1,000,000 6.000% 04/01/11....... Aaa AAA 1,062,920
1,000,000 Monroe, North Carolina,
Combined Enterprise
System Revenue,
6.000% 03/01/14....... A A 1,007,090
1,000,000 Morganton, North
Carolina, Water and
Sewer Revenue, GO,
(FGIC Insured),
5.600% 06/01/10....... Aaa AAA 1,017,140
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 New Hanover County,
North Carolina,
Industrial Facilities
and Pollution Control
Financing Authority,
(Solid Waste Disposal,
Occidental Petroleum
Corporation Project),
AMT,
6.500% 08/01/14....... Baa3 BBB $ 1,023,590
1,000,000 North Carolina Eastern
Municipal Power
Agency, Power System
Revenue, Refunding,
Series B,
6.000% 01/01/06....... Baa1 BBB+ 1,013,340
North Carolina Housing
Finance Agency:
830,000 Series U,
6.700% 03/01/18....... Aa A+ 866,147
970,000 Single-family Revenue,
Series W,
6.200% 09/01/09....... Aa A+ 1,006,346
North Carolina Medical
Care Commission,
Hospital Revenue
Refunding:
1,000,000 (Carolina MediCorp
Project),
5.500% 05/01/15....... Aa AA 971,630
(Gaston Memorial
Hospital Project):
1,000,000 5.000% 02/15/04....... A A+ 986,610
1,130,000 (AMBAC Insured),
5.250% 02/15/07....... Aaa AAA 1,129,028
1,000,000 (Grace Hospital Inc.
Project), (AMBAC
Insured),
5.250% 10/01/16....... Aaa AAA 947,840
1,000,000 (Rex Hospital Project),
6.250% 06/01/17....... A1 A+ 1,021,350
1,000,000 North Carolina Municipal
Power Agency,
Refunding #1, Catawba
Electric Revenue
Refunding, (FSA
Insured),
6.200% 01/01/18....... Aaa AAA 1,039,780
1,500,000 Onslow County, North
Carolina, Combined
Enterprise System
Revenue, (MBIA
Insured),
5.875% 06/01/09....... Aaa AAA 1,559,865
1,000,000 Orange County, North
Carolina, GO,
5.500% 02/01/14....... Aa1 AA+ 997,700
1,000,000 Wake County, North
Carolina, Hospital
Revenue, (MBIA
Insured),
5.125% 10/01/26....... Aaa AAA 904,550
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 36
NATIONS FUND
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 Wilmington, North
Carolina, Water
Authority, GO,
5.700% 06/01/15....... A1 A+ $ 1,016,050
1,000,000 Winston-Salem, North
Carolina, Water and
Sewer Systems Revenue,
Series B,
5.600% 06/01/14....... Aa AA+ 987,770
-----------
28,094,171
===========
PUERTO RICO -- 2.0%
600,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities, Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07....... NR BBB- 585,852
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $27,854,805).... 28,680,023
===========
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUND -- 0.2%
(Cost $59,000)
59,000 AIM Tax-Exempt Fund............ $ 59,000
===========
TOTAL INVESTMENTS
(Cost $27,913,805*)..................... 98.9% 28,739,023
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.1 319,060
---- -----------
NET ASSETS................................ 100.0% $29,058,083
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 37
NATIONS FUND
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.3%
SOUTH CAROLINA -- 98.3%
$1,100,000 Anderson County, South
Carolina, Revenue
Refunding, GO,
6.400% 04/01/03..... A A $ 1,187,131
500,000 Beaufort County, South
Carolina, School
District, GO, (AMBAC
Insured),
6.250% 02/01/01..... Aaa AAA 530,850
2,000,000 Berkeley County, South
Carolina, Pollution
Control Facilities
Revenue Refunding,
(Alumax Inc.
Project), (Royal
Bank of Canada LOC),
3.700% 12/01/08+.... Aa2 NR 2,000,000
1,000,000 Berkeley County, South
Carolina, Refunding
and Improvement
Authority, (FGIC
Insured),
5.300% 05/01/04..... Aaa AAA 1,023,770
500,000 Berkeley County, South
Carolina, Water and
Sewer Authority
Revenue, (MBIA
Insured),
6.100% 06/01/98..... Aaa AAA 515,780
Charleston County,
South Carolina,
Hospital Facilities,
Revenue Refunding
and Improvement,
(Medical Society
Health Project),
(MBIA Insured):
500,000 5.000% 10/01/99..... Aaa AAA 506,810
1,000,000 6.000% 10/01/09..... Aaa AAA 1,023,570
1,000,000 Charleston County,
South Carolina, Park
and Recreation
Commission District,
GO,
4.900% 02/01/99..... Aa AA- 1,013,590
1,040,000 Charleston County,
South Carolina,
Solid Waste User Fee
Revenue, (MBIA
Insured),
5.800% 01/01/06..... Aaa AAA 1,084,658
500,000 Chester County, South
Carolina, Industrial
Development
Authority Revenue
Refunding, (Springs
Industries Inc.
Project),
7.350% 02/01/14..... NR BBB+ 529,050
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 500,000 Chester County, South
Carolina, School
District, GO,
6.100% 02/01/01..... NR A $ 532,210
Columbia, South
Carolina, Waterworks
and Sewer System
Revenue:
855,000 6.200% 02/01/99..... Aa AA 890,098
1,250,000 5.500% 02/01/09..... Aa AA 1,256,575
2,700,000 Capital Appreciation,
Zero coupon
02/01/03++........... Aa AA 1,974,564
1,000,000 Darlington County,
South Carolina,
Industrial
Development Revenue,
(Nucor Corporation
Project), Series A,
5.750% 08/01/23..... A1 AA- 980,750
1,500,000 Dorchester County,
South Carolina,
School District
No. 2, GO, (FGIC
Insured),
5.200% 02/01/15..... Aaa AAA 1,435,305
1,250,000 Florence, South
Carolina, Water and
Sewer Revenue
Refunding #2, (AMBAC
Insured),
5.150% 03/01/06..... Aaa AAA 1,249,025
1,000,000 Georgetown County,
South Carolina, PCR,
(International Paper
Company Project),
6.250% 06/15/05..... A3 A- 1,058,860
Grand Strand Water and
Sewer Authority
Revenue Refunding,
(MBIA Insured):
1,000,000 5.900% 06/01/01..... Aaa AAA 1,046,640
1,950,000 6.300% 06/01/05..... Aaa AAA 2,098,102
Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding:
1,000,000 Series A,
5.400% 05/01/07..... Aa AA- 996,130
1,000,000 Series C,
5.300% 05/01/04..... NR AA- 1,003,670
1,885,000 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding
and Improvement,
(AMBAC Insured),
5.500% 12/01/06..... Aaa AAA 1,931,201
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 38
NATIONS FUND
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
Lancaster County,
South Carolina,
School District, GO,
(MBIA Insured):
$ 600,000 5.900% 07/01/01..... Aaa AAA $ 633,696
500,000 6.500% 07/01/07..... Aaa AAA 550,120
Medical University of
South Carolina,
Hospital Facilities
Revenue, Series A:
500,000 6.400% 07/01/99..... A A+ 522,190
Refunding:
500,000 7.000% 07/01/01..... A A+ 544,425
1,000,000 7.000% 07/01/02..... A A+ 1,085,610
2,500,000 7.200% 07/01/05..... A A+ 2,698,750
1,750,000 North Charleston,
South Carolina,
Refunding, GO,
5.600% 08/01/07..... A AA- 1,788,255
1,500,000 Oconee County, South
Carolina, School
District, Refunding,
Series B,
6.000% 03/01/99..... A A 1,549,920
1,600,000 Piedmont Municipal
Power Agency,
Revenue Bonds,
(South Carolina
Electric Company
Project), (MBIA
Insured),
6.000% 01/01/05..... Aaa AAA 1,711,424
Richland County, South
Carolina, PCR,
(Union Camp
Corporation
Project), Series C:
2,000,000 5.875% 11/01/02..... A1 A- 2,083,300
1,000,000 6.350% 11/01/07..... A1 A- 1,083,200
Richland County, South
Carolina, Revenue
Refunding and
Improvement:
500,000 5.750% 12/01/99..... Aa AA 520,785
2,120,000 Series B,
4.850% 03/01/04..... Aa AA 2,113,131
1,590,000 Richland County, South
Carolina, School
District No. 2,
Refunding, Series A,
(MBIA Insured),
4.900% 03/01/04..... Aaa AAA 1,585,628
Rock Hill, South
Carolina, School
District No. 3,
Refunding, Series B,
(FGIC Insured):
500,000 5.800% 02/01/01..... Aaa AAA 522,110
1,910,000 5.900% 02/01/02..... Aaa AAA 2,006,818
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$2,135,000 South Carolina State,
Capital Improvement,
GO, Series A
3.500% 07/01/06..... Aaa AAA $ 1,877,967
South Carolina State,
Housing Finance and
Development
Authority:
1,000,000 Homeownership Mortgage
Purchase, Series A,
5.550% 07/01/15..... Aa AA 998,520
Multi-family Housing
Revenue:
910,000 Rental Housing
Revenue, (Windsor
Shores Project),
Series B, (FHA/VA/
Private Mortgages
Insured),
5.600% 07/01/16..... NR AA 876,257
1,000,000 Series A, (FHA/VA/
Private Mortgages
Insured),
6.800% 11/15/11..... Aaa NR 1,049,530
5,000,000 (United Dominion
Project),
6.500% 05/01/24..... NR BBB+ 5,115,100
1,000,000 South Carolina State,
Jobs-Economic
Development
Authority, Hospital
Facilities Revenue,
(South Carolina
Baptist Hospital
Project), (AMBAC
Insured),
5.450% 08/01/15..... Aaa AAA 940,510
South Carolina State,
Public Service
Authority, Revenue
Bonds:
1,000,000 Series A,
5.200% 07/01/03..... Aa A+ 1,013,550
1,000,000 Series B,
6.600% 07/01/01..... Aaa AAA 1,083,360
1,440,000 South Carolina State
Refunding, Capital
Improvement, GO,
4.400% 04/01/04..... Aaa AA+ 1,394,194
1,750,000 South Carolina State
Revenue Bonds, GO,
Series W,
6.000% 05/01/01..... Aaa AA+ 1,859,095
1,005,000 Spartanburg County,
South Carolina, GO,
5.700% 02/01/06..... A1 A+ 1,042,004
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 39
NATIONS FUND
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,000,000 Spartanburg, South
Carolina, Waterworks
and Sewer System
Authority, Revenue
Refunding and
Improvement,
6.200% 06/01/09..... A1 AA- $ 1,039,970
560,000 Summerville, South
Carolina, Water and
Sewer Authority
Revenue,
6.050% 09/01/00..... A A 589,613
1,000,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation
Project), AMT,
5.700% 01/01/24..... A2 A+ 965,730
York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project):
560,000 Series A,
7.400% 01/01/10..... Baa1 BBB 595,661
1,300,000 Series B,
6.850% 04/01/01..... Baa1 BBB 1,369,953
500,000 York County, South
Carolina, School
District No. 3, GO,
Series B,
5.700% 07/01/97..... Ba A 506,390
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 500,000 York County, South
Carolina, Water and
Sewer Revenue,
6.125% 12/01/08..... NR NR $ 492,585
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $68,114,907)........... 69,677,690
============
<CAPTION>
SHARES
- ---------
<S> <C> <C>
MONEY MARKET FUND -- 0.2%
(Cost $128,000)
128,000 AIM Tax-Exempt Fund............ 128,000
============
TOTAL INVESTMENTS
(Cost $68,242,907*)..................... 98.5% 69,805,690
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.5 1,076,574
----- -----------
NET ASSETS................................ 100.0% $70,882,264
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1996.
++ Yield to maturity is 4.815%.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
GO General Obligation
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
Nations South Carolina Intermediate Municipal Bond Fund had
the following insurance concentration greater than 10% at
September 30, 1996 (as a percentage of net assets):
MBIA 15.2%
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 40
NATIONS FUND
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.8%
SOUTH CAROLINA -- 82.0%
$ 340,000 Beaufort County, South
Carolina, GO, (MBIA
Insured),
5.600% 12/01/08...... Aaa AAA $ 345,494
750,000 Berkeley County, South
Carolina, PCR, (South
Carolina Electric and
Gas Company),
6.500% 10/01/14...... A2 A1+ 796,478
500,000 Charleston, South
Carolina, GO,
6.500% 06/01/11...... Aa AA 538,785
500,000 Charleston County,
South Carolina,
Hospital Facilities
Revenue, (Bon Secours
Health Systems
Project), (FSA
Insured),
5.625% 08/15/25...... Aaa AAA 482,345
1,000,000 Chester County, South
Carolina, Industrial
Development Authority
Revenue Refunding,
(Springs Industries
Inc. Project),
7.350% 02/01/14...... NR BBB+ 1,058,100
500,000 Clemson University,
South Carolina,
Stadium Refunding
Bonds, Student and
Faculty Housing,
Series M, (MBIA
Insured),
6.600% 06/01/08...... Aaa AAA 537,640
450,000 Columbia, South
Carolina, GO,
Series A,
6.500% 02/01/12...... Aa AA 483,251
750,000 Columbia, South
Carolina, Waterworks
and Sewer System
Revenue,
5.500% 02/01/09...... Aa AA 753,945
Darlington County,
South Carolina,
Industrial
Development Revenue:
1,000,000 (Nucor Corporation
Project), Series A,
5.750% 08/01/23...... A1 AA- 980,750
500,000 (Sonoco Products
Company Project),
6.125% 06/01/25...... A2 A+ 507,460
500,000 Darlington County,
South Carolina, PCR,
(Carolina Power and
Light Company
Project),
6.600% 11/01/10...... A2 A/A-1 542,950
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
Dorchester County,
South Carolina,
School District
No. 2, GO, (FGIC
Insured):
$ 500,000 4.800% 07/01/05...... Aaa AAA $ 491,970
650,000 (Student Aid
Withholding),
5.125% 02/01/13...... Aaa AAA 620,594
500,000 Georgetown County,
South Carolina, PCR,
(International Paper
Company Project),
6.250% 06/15/05...... A3 A- 529,430
400,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series C,
5.500% 05/01/11...... NR AA- 394,460
500,000 Oconee County, South
Carolina, PCR,
Refunding, (Duke
Power Company
Project),
5.800% 04/01/14...... Aa2 AA- 506,690
525,000 Richland County, South
Carolina, Sewer
System Revenue, GO,
Series A,
5.500% 03/01/17...... Aa AA 521,792
500,000 Richland County, South
Carolina, Waste
Disposal Facilities
Revenue Refunding,
(Union Camp
Corporation Project),
Series A, AMT,
6.750% 05/01/22...... A1 A- 527,530
500,000 South Carolina State,
Capital Improvement,
4.400% 04/01/04...... Aaa AA+ 484,095
300,000 South Carolina State,
Housing Finance and
Development
Authority,
Homeownership
Mortgage Purchase,
Series A,
6.375% 07/01/16...... Aa AA 306,183
South Carolina State,
Jobs-Economic
Development
Authority, Hospital
Facilities Revenue:
500,000 First Mortgage, (Lowman
Home-Trinity Lutheran
Home Project),
6.700% 09/01/20...... NR NR 491,950
1,000,000 (South Carolina Baptist
Hospital), (AMBAC
Insured),
5.450% 08/01/15...... Aaa AAA 940,510
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 41
NATIONS FUND
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 500,000 South Carolina State,
Public Service
Authority, Revenue
Bonds, Series C,
(MBIA Insured),
5.125% 01/01/21...... Aaa AAA $ 459,350
500,000 York County, South
Carolina, GO, (AMBAC
Insured),
4.750% 06/01/07...... Aaa AAA 477,380
York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project):
350,000 Series A,
7.400% 01/01/10...... Baa1 BBB 372,288
600,000 Series B,
6.850% 04/01/01...... Baa1 BBB 632,286
-----------
14,783,706
-----------
GUAM -- 2.8%
500,000 Government of Guam,
Airport Authority
Revenue, Series A,
5.600% 10/01/00...... NR BBB 506,245
-----------
OHIO -- 2.8%
500,000 Dayton, Ohio, Special
Facilities Revenue
Refunding, (Air
Freight Corporation
Project), Series F,
6.050% 10/01/09...... NR BBB- 505,205
-----------
PUERTO RICO -- 9.2%
1,000,000 Puerto Rico, Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage - Portfolio
I), AMT, (GNMA/
FNMA/FHLMC
Collateral),
6.250% 04/01/29...... Aaa AAA 1,014,600
650,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities, Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07...... NR BBB- 634,673
-----------
1,649,273
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $17,126,374)............ 17,444,429
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C> <C>
------------------------------------------------------------
MONEY MARKET FUND -- 1.6%
(Cost $289,000)
289,000 AIM Tax-Exempt Fund.......... $ 289,000
==========
TOTAL INVESTMENTS
(Cost $17,415,374*)..................... 98.4% 17,733,429
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.6 291,298
---- ----------
NET ASSETS................................ 100.0% $18,024,727
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 42
NATIONS FUND
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 98.5%
TENNESSEE -- 84.9%
Anderson County,
Tennessee, Health and
Educational Facilities
Board, (Methodist
Medical Center):
$ 585,000 5.000% 07/01/01....... A1 NR $ 584,468
1,000,000 5.400% 07/01/04....... A1 NR 1,003,840
Chattanooga-Hamilton
County, Tennessee,
Hospital Authority
Revenue, GO, (Erlanger
Medical Center), (FSA
Insured):
500,000 5.000% 10/01/00....... Aaa AAA 507,965
500,000 5.375% 10/01/04....... Aaa AAA 513,570
650,000 Hamilton County,
Tennessee, GO,
5.000% 07/01/01....... Aa NR 661,771
600,000 Knoxville, Tennessee,
Refunding and
Improvement, GO,
Series A, (MBIA
Insured),
5.250% 05/01/03....... Aaa AAA 615,066
500,000 Madison County,
Tennessee, GO,
Series A,
5.850% 08/01/03....... A1 NR 527,095
500,000 Maury County, Tennessee,
Industrial Development
Board, PCR, Multi-
Modal Refunding,
(Saturn Corporation
Project), General
Motors Guaranty
Agreement,
6.500% 09/01/24....... A3 A- 520,995
800,000 McMinn County,
Tennessee, Industrial
Development Board,
PCR, Refunding,
(Bowater Inc.
Project),
6.850% 04/01/01....... Baa1 BBB 857,416
Memphis, Tennessee,
Electric System
Revenue:
235,000 Pre-refunded,
6.750% 01/01/00....... NR NR 251,676
500,000 Refunding,
5.000% 01/01/99....... Aa AA 507,190
1,500,000 Memphis, Tennessee,
Water Revenue,
5.900% 01/01/04....... Aa AA 1,590,135
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Education
Facilities Board
Revenue, Refunding and
Improvement, (Meharry
Medical College
Project), (AMBAC
Insured):
$ 505,000 6.000% 12/01/08....... Aaa AAA $ 534,967
295,000 6.000% 12/01/09....... Aaa AAA 310,933
750,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Refunding, GO,
5.250% 05/15/07....... Aa AA 755,422
500,000 Rutherford County,
Tennessee, Public
Improvement, GO,
4.900% 04/01/04....... Aa AA- 500,935
Shelby County,
Tennessee, Health,
Education and Housing
Facilities Board:
500,000 6.250% 08/01/09....... Aaa AAA 533,205
520,000 Series D, (MBIA
Insured),
5.300% 08/15/04....... Aaa AAA 535,137
Shelby County,
Tennessee, Public
Improvement, GO:
500,000 Series A,
5.625% 06/01/06....... Aa AA+ 519,805
865,000 Series B,
5.250% 11/01/04....... Aa AA+ 884,973
Tennessee Housing
Development Agency,
Mortgage Finance, AMT:
200,000 Series A,
6.300% 01/01/08....... A1 A+ 204,506
300,000 Series B,
6.550% 07/01/19....... A1 A+ 307,563
Tennessee State, GO:
305,000 Series A,
7.000% 03/01/05....... Aaa AA+ 348,060
500,000 Series B,
6.000% 05/01/06....... Aaa AA+ 538,080
500,000 Tennessee State, Local
Development Revenue,
Series A,
5.750% 03/01/11....... A AA- 500,965
500,000 Tennessee State,
Volunteer State
Student Funding
Corporation,
Educational Loan
Revenue, Series B,
AMT,
4.850% 06/01/99....... Aa NR 503,325
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 43
NATIONS FUND
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATINGS VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$ 730,000 Williamson County,
Tennessee, Capital
Outlay Notes,
5.700% 05/01/02....... Aa NR $ 763,281
-----------
15,882,344
-----------
PUERTO RICO -- 13.6%
600,000 Puerto Rico Electric
Power Authority, Power
Revenue, Series P,
6.750% 07/01/03....... Baa1 BBB+ 654,696
600,000 Puerto Rico, Housing,
Bank and Finance
Agency, Single-family
Mortgage Revenue,
(Affordable Housing
Mortgage - Portfolio
I), AMT, (GNMA/
FNMA/FHLMC
Collateral),
5.450% 04/01/05....... Aaa AAA 611,520
500,000 Puerto Rico, Industrial,
Medical and
Environmental Agency
Facilities Financing
Authority Revenue,
Series A, (Intel
Corporation Project),
4.000% 09/01/13+...... A1 A+ 498,025
750,000 Puerto Rico, Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.400% 05/01/09....... NR BBB 776,722
-----------
2,540,963
-----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $18,116,662)............. 18,423,307
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
MONEY MARKET FUND -- 0.3%
(Cost $49,000)
49,000 AIM Tax-Exempt Fund.............. $ 49,000
===========
TOTAL INVESTMENTS
(Cost $18,165,662*)..................... 98.8% 18,472,307
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.2 225,671
----- -----------
NET ASSETS................................ 100.0% $18,697,978
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1996.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 44
NATIONS FUND
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.3%
TENNESSEE -- 90.2%
$ 250,000 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority
Revenue, GO,
(Erlanger Medical
Center), (FSA
Insured),
5.500% 10/01/07...... Aaa AAA $ 254,337
145,000 Clarksville, Tennessee,
Water, Sewer and Gas
Authority Revenue
Refunding and
Improvement, (MBIA
Insured),
6.125% 02/01/12...... Aaa AAA 150,397
500,000 Humphreys County,
Tennessee, Industrial
Development Board,
Solid Waste Disposal
Revenue, (du Pont
(E.I.) de Nemours &
Company Project),
AMT,
6.700% 05/01/24...... Aa3 AA- 532,970
Knox County, Tennessee,
Health, Educational
and Housing
Facilities Board,
Hospital Facilities
Revenue Refunding:
300,000 (Fort Sanders
Alliance Project),
(MBIA Insured),
7.250% 01/01/09...... Aaa AAA 349,977
100,000 (Mercy Health
System), Series B,
(AMBAC Insured),
5.600% 09/01/07...... Aaa AAA 102,205
365,000 Knoxville, Tennessee,
Refunding and
Improvement, GO,
Series A, (MBIA
Insured),
5.250% 05/01/03...... Aaa AAA 374,165
Knoxville, Tennessee,
Water Authority
Revenue, Refunding
and Improvement:
250,000 5.100% 04/01/10...... Aa AA- 240,097
150,000 Series M,
5.250% 03/01/12...... Aa AA 144,468
200,000 Loudon County,
Tennessee, Industrial
Development Board,
Solid Waste Disposal
Revenue, (Kimberly-
Clark Corporation
Project), AMT,
6.200% 02/01/23...... Aa2 AA 202,378
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$ 250,000 Maury County,
Tennessee, Industrial
Development Board,
PCR, Multi-Modal
Refunding, (Saturn
Corporation Project),
General Motors
Guaranty Agreement,
6.500% 09/01/24...... A3 A- $ 260,497
250,000 McMinn County,
Tennessee, Industrial
Development Board,
Solid Waste Recycling
Facility Revenue,
(Calhoun Newsprint
Project), AMT,
7.400% 12/01/22...... Baa1 BBB 268,680
300,000 Memphis, Tennessee,
Electric System
Revenue Refunding,
4.900% 01/01/11...... Aa AA 279,318
300,000 Memphis, Tennessee, GO,
5.250% 03/01/12...... Aa AA 291,648
Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and
Project Revenue
Refunding, (Federal
Express Corporation
Project), AMT:
250,000 6.750% 09/01/12...... Baa2 BBB 261,778
100,000 6.200% 07/01/14...... Baa2 BBB 100,035
350,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Electric
Revenue, Series A,
5.625% 05/15/14...... Aa AA 350,714
300,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Refunding,
GO,
5.000% 05/15/04...... Aa AA 302,442
Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Health and
Education Facilities
Board Revenue,
Refunding and
Improvement, (Meharry
Medical College
Project), (AMBAC
Insured):
300,000 6.000% 12/01/09...... Aaa AAA 316,203
250,000 7.000% 12/01/11...... Aaa AAA 286,698
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 45
NATIONS FUND
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$ 250,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Revenue
Refunding, GO,
5.250% 05/15/07...... Aa AA $ 251,808
300,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Water and
Sewer Revenue, (FGIC
Insured),
5.200% 01/01/13...... Aaa AAA 289,821
200,000 Putnam County,
Tennessee, GO, (MBIA
Insured),
5.125% 04/01/11...... Aaa AAA 189,718
300,000 Rutherford County,
Tennessee, Public
Improvement, GO,
6.000% 04/01/06...... Aa AA- 320,835
245,000 Shelby County,
Tennessee, Compounded
Interest, Public
Improvement, GO,
Series A,
Zero coupon
05/01/09+ ........... Aa AA+ 120,530
200,000 Shelby County,
Tennessee, Health,
Education and Housing
Facilities Board,
Hospital Revenue,
(MBIA Insured),
5.250% 08/01/15...... Aaa AAA 189,672
240,000 Shelby County,
Tennessee, School
Bonds, GO, Series A,
5.900% 03/01/15...... Aa AA+ 245,227
250,000 Sumner County,
Tennessee, Health,
Education and Housing
Facilities Board
Revenue Refunding,
(Sumner Regional
Health System Inc.),
7.000% 11/01/03...... NR A- 270,985
250,000 Tennessee State, GO,
Series A,
7.000% 03/01/05...... Aaa AA+ 285,295
250,000 Tennessee State, Local
Development Revenue,
Series A,
5.750% 03/01/11...... A AA- 250,483
-----------
7,483,381
===========
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 7.1%
$ 300,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and
Environmental Control
Facilities Financing
Authority, (Ryder
Memorial Hospital
Project), Series A,
6.600% 05/01/14...... NR BBB $ 304,506
300,000 Puerto Rico Public
Building Authority,
Guaranteed Public
Education and Health
Facilities Revenue
Refunding, Series M,
5.500% 07/01/21...... Baa1 A 283,338
-----------
587,844
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $7,842,437)............. 8,071,225
===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C> <C>
---------
MONEY MARKET FUND -- 0.9%
(Cost $75,000)
75,000 AIM Tax-Exempt Fund............. 75,000
----------
TOTAL INVESTMENTS
(Cost $7,917,437*)...................... 98.2% 8,146,225
OTHER ASSETS AND
LIABILITIES (NET)....................... 1.8 147,321
----- -----------
NET ASSETS................................ 100.0% $ 8,293,546
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 5.872%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
Nations Tennessee Municipal Bond Fund had the following
insurance concentration greater than 10% at September 30,
1996 (as a percentage of net assets):
MBIA 15.1%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 46
NATIONS FUND
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.3%
TEXAS -- 77.2%
Alief, Texas,
Independent School
District, GO:
$1,000,000 Zero coupon
02/15/01+........... Aaa AAA $ 810,520
525,000 (PSFG Insured),
5.000% 02/15/17..... Aaa AAA 481,598
1,450,000 Alliance Airport
Authority Inc.,
Texas, Special
Facilities Revenue,
(American Airlines
Inc. Project), AMT,
7.000% 12/01/11..... Baa2 BB+ 1,578,833
750,000 Amarillo Texas Junior
College District,
GO, (FGIC Insured),
7.600% 02/15/06..... Aaa AAA 880,920
2,000,000 Arlington, Texas,
Independent School
District, GO, (PSFG
Insured),
5.800% 02/15/02..... Aaa NR 2,101,584
1,000,000 Arlington, Texas,
Waterworks and Sewer
Authority Revenue,
(FGIC Insured),
6.000% 06/01/00..... Aaa AAA 1,048,770
995,000 Bell County, Texas,
Health Facilities
Development,
Corporate Revenue
Refunding, (Central
Texas Pooled
Health), Series A,
4.750% 10/01/23..... NR AA- 998,582
1,000,000 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior
Lien, Series A-2,
AMT, (Guaranteed
Student Loans),
6.050% 06/01/03..... Aaa NR 1,042,730
500,000 Denton, Texas, Health
Facilities
Development,
Refunding,
6.000% 05/01/05..... Aaa AAA 528,810
1,050,000 Garland, Texas,
Independent School
District, GO, (PSFG
Insured),
5.500% 02/15/00..... Aaa AAA 1,081,490
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$1,000,000 Granbury, Texas,
Independent School
District, GO, (PSFG
Insured),
5.000% 08/01/09..... Aaa AAA $ 956,980
1,000,000 Harris County, Texas,
Certificates of
Obligation, GO,
6.700% 06/01/00..... Aa AA 1,061,420
1,250,000 Harris County, Texas,
Municipal Utilities
District, GO,
5.750% 10/01/03..... Aa AA 1,308,650
1,000,000 Harris County, Texas,
Tax Revenue
Refunding,
6.000% 10/01/05..... Aa AA 1,066,230
1,000,000 Judson, Texas,
Independent School
District, GO, (PSFG
Insured),
5.900% 02/01/01..... Aaa NR 1,049,300
1,000,000 Lower Colorado River
Authority, Texas,
Revenue Refunding,
Series A, (AMBAC
Insured),
6.400% 01/01/01..... Aaa AAA 1,069,520
1,000,000 North Texas, Municipal
Water District,
Revenue Refunding,
(MBIA Insured),
5.000% 09/01/06..... Aaa AAA 989,180
1,000,000 Tarrant County, Texas,
GO,
6.750% 07/15/07..... NR AA+ 1,074,660
1,000,000 Texas A&M University,
Permanent Funding,
Series C,
5.250% 07/01/02..... Aaa AA+ 1,029,910
1,000,000 Texas A&M University,
Revenue Financing
System, Refunding,
5.950% 05/15/05..... Aa AA 1,063,530
500,000 Texas State College,
Texas, Student Loan
Authority Revenue,
GO, AMT,
5.750% 08/01/11..... Aa AA 496,020
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 47
NATIONS FUND
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$1,000,000 Texas State, Public
Finance Authority,
Building Revenue,
Series A, (AMBAC
Insured),
6.000% 08/01/05..... Aaa AAA $ 1,069,170
875,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
Series B-4, AMT,
6.200% 12/01/14..... Aa AA 889,980
1,500,000 Travis County, Texas,
Limited Tax Revenue
Refunding, Series A,
(MBIA Insured),
5.750% 03/01/06..... Aaa AAA 1,549,425
-----------
25,227,812
-----------
ARIZONA -- 3.3%
1,000,000 Maricopa County,
Arizona, Unified
School District No.
69, (Paradise Valley
Refunding Project),
GO, (MBIA Insured),
6.350% 07/01/10..... Aaa AAA 1,095,360
-----------
FLORIDA -- 3.1%
1,000,000 Florida State, Housing
Finance Agency,
Refunding, Multi-
family Housing
Revenue, (Andover
Place Project),
Series E,
6.350% 05/01/26..... NR BBB+ 1,008,910
-----------
MAINE -- 3.1%
1,000,000 Bucksport, Maine,
Solid Waste Disposal
Revenue, (Champion
International
Corporation
Project),
6.250% 05/01/10..... Baa1 BBB 1,008,150
-----------
MASSACHUSETTS -- 3.5%
1,160,000 Massachusetts State,
Consolidated Loans,
Series A, (MBIA
Insured),
5.000% 01/01/06..... Aaa AAA 1,148,063
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW MEXICO -- 1.9%
$ 625,000 Santa Fe, New Mexico,
Gross Receipts Tax
Revenue Refunding,
Series B, (AMBAC
Insured),
5.625% 06/01/16..... NR NR $ 620,175
-----------
PENNSYLVANIA -- 3.1%
1,000,000 Monroeville,
Pennsylvania,
Hospital Authority
Revenue,
5.000% 10/01/99..... Baa1 BBB+ 996,700
-----------
SOUTH DAKOTA -- 3.1%
1,000,000 South Dakota State,
Housing Development
Authority Revenue,
Homeownership
Mortgage Revenue,
Series A,
5.000% 05/01/01..... Aa1 AAA 1,008,510
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $31,609,456)........... 32,113,680
===========
<CAPTION>
SHARES
- ---------
<C> <S> <C> <C>
MONEY MARKET FUND -- 1.6%
(Cost $515,000)
515,000 AIM Tax-Exempt Fund........... 515,000
===========
TOTAL INVESTMENTS
(Cost $32,124,456*)..................... 99.9% 32,628,680
OTHER ASSETS AND
LIABILITIES (NET)....................... 0.1 33,471
------ -----------
NET ASSETS................................ 100.0% $32,662,151
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 4.650%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PSFG Permanent School Funding Guaranty
</TABLE>
Nations Texas Intermediate Bond Fund had the following insurance concentrations
greater than 10% at September 30, 1996 (as a percentage of net assets):
<TABLE>
<S> <C>
MBIA 14.6%
PSFG 17.4%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 48
NATIONS FUND
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 102.0%
TEXAS -- 76.4%
$ 500,000 Alief, Texas,
Independent School
District, GO, (PSFG
Insured),
5.000% 02/15/17....... Aaa AAA $ 458,665
500,000 Conroe, Texas,
Independent School
District Revenue, Lot
A, GO, (PSFG Insured),
5.000% 02/01/11....... Aaa AAA 471,600
500,000 Corpus Christi, Texas,
Utilities System
Revenue,
(MBIA Insured),
5.200% 07/15/12....... Aaa AAA 478,265
500,000 Dallas County, Texas,
GO,
5.250% 08/15/14....... Aaa AAA 482,000
750,000 Dallas-Fort Worth,
Texas, Regional
Airport Revenue
Refunding, Series A,
(MBIA Insured),
6.000% 11/01/09....... Aaa AAA 776,648
500,000 Gulf Coast, Texas, Waste
Disposal Authority
Revenue Refunding,
(Houston Light & Power
Company), Series A,
(MBIA Insured),
6.375% 04/01/12....... Aaa AAA 528,680
1,000,000 Harris County, Texas,
Health Facilities
Development Authority,
(Texas Childrens
Hospital Project),
(MBIA Insured),
6.000% 10/01/05....... Aaa AAA 1,055,460
1,500,000 Irving, Texas,
Independent School
District, Capital
Appreciation
Refunding, GO, (PSFG
Insured), Zero coupon
02/15/02+............. Aaa AAA 1,152,705
500,000 Laredo, Texas,
International Toll
Bridge Revenue
Refunding, (AMBAC
Insured),
5.200% 10/01/05....... Aaa AAA 506,095
500,000 Plano, Texas,
Independent School
District, GO, (PSFG
Insured),
7.250% 02/15/04....... Aaa AAA 569,965
1,000,000 Red River Authority,
Texas, PCR,
(Hoechst Celanese
Corporation Project),
AMT,
6.875% 04/01/17....... A2 A+ 1,067,800
1,000,000 Sabine River Authority,
Texas, PCR Refunding,
(Texas Utilities
Electric Company
Project), Series B,
(MBIA Insured),
5.850% 05/01/22....... Aaa AAA 994,690
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 500,000 San Antonio, Texas,
Water Revenue, (FGIC
Insured),
5.900% 05/15/00....... Aaa AAA $ 522,635
650,000 Sherman, Texas,
Independent School
District, GO, (PSFG
Insured),
6.500% 02/15/20....... Aaa AAA 723,528
1,000,000 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
System Revenue,
(Harris Methodist
Health System),
6.000% 09/01/10....... A NR 1,029,310
500,000 Texas State College,
Texas,
Student Loan Authority
Revenue, GO, AMT,
5.750% 08/01/11....... Aa AA 496,020
375,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
GO, Series C,
6.400% 12/01/09....... Aa AA 388,508
600,000 Texas State, Water
Development Board
Revenue, State
Revolving
Fund, Senior Lien,
6.400% 07/15/08....... Aa1 AAA 639,653
1,000,000 Trinity River Authority,
Texas, PCR, (Texas
Instruments Inc.
Project),
6.200% 03/01/20....... NR NR 1,006,440
-----------
13,348,667
-----------
ARIZONA -- 3.1%
500,000 Maricopa County,
Arizona, Unified
School District No.
69, (Paradise Valley
Refunding Project),
GO, (MBIA Insured),
6.350% 07/01/10....... Aaa AAA 547,680
-----------
COLORADO -- 4.9%
1,500,000 Arapahoe County,
Colorado, Capital
Improvements Highway
Revenue, Series E,
6.500% 08/31/05....... Baa NR 859,035
-----------
NEW MEXICO -- 5.7%
1,000,000 Santa Fe, New Mexico,
Gross Receipts Tax
Revenue Refunding,
Series B, (AMBAC
Insured),
5.625% 06/01/16....... Aaa AAA 992,280
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 49
NATIONS FUND
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- 6.2%
$1,000,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project),
6.125% 12/01/13....... NR BBB+ $ 1,088,310
-----------
PUERTO RICO -- 2.8%
500,000 Puerto Rico Industrial,
Medical and
Environmental Agency,
Pollution Control
Facilities, Finance
Authority Revenue,
Higher Education,
(Catholic University
Project), Series A,
5.600% 12/01/07....... NR BBB- 488,210
-----------
SOUTH CAROLINA -- 2.9%
500,000 Greenville, South
Carolina, Hospital
Systems, Hospital
Facilities Revenue,
Series B,
5.500% 05/01/08....... Aa AA- 498,280
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $17,091,151)............ 17,822,462
===========
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUND -- 2.5%
(Cost $447,000)
447,000 AIM Tax-Exempt Fund............. $ 447,000
===========
TOTAL INVESTMENTS
(Cost $17,538,151*)..................... 104.5% 18,269,462
OTHER ASSETS AND
LIABILITIES (NET)....................... (4.5) (793,339)
----- -----------
NET ASSETS................................ 100.0% $17,476,123
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Yield to maturity is 5.384%.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
PSFG Permanent School Funding Guaranty
</TABLE>
Nations Texas Municipal Bond Fund had the following insurance concentrations
greater than 10% at September 30, 1996 (as a percentage of net assets):
<TABLE>
<S> <C>
MBIA 25.1%
PSFG 19.3%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 50
NATIONS FUND
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 99.2%
VIRGINIA -- 98.8%
$2,000,000 Alexandria, Virginia,
Redevelopment and
Housing Authority,
Multi-family Housing
Revenue Mortgage,
Buckingham Village
Apartments, Series A,
AMT,
6.050% 07/01/16....... NR A $ 1,995,200
Arlington County,
Virginia, GO:
2,345,000 5.400% 08/01/02....... Aaa AAA 2,442,341
3,000,000 5.000% 07/15/03....... Aaa AAA 3,055,110
2,900,000 5.900% 12/01/03....... Aaa AAA 3,106,248
1,715,000 Series A, Pre-refunded,
6.700% 06/01/99....... Aaa AAA 1,846,883
1,000,000 Arlington County,
Virginia, Industrial
Development Authority,
Hospital Facilities
Revenue,
Pre-refunded,
6.650% 09/01/01....... Aaa NR 1,101,280
3,455,000 Augusta County,
Virginia, Industrial
Development Authority,
Pre-refunded,
7.000% 09/01/01....... A NR 3,848,766
2,000,000 Brunswick County,
Virginia, Industrial
Development Authority,
Correctional Facility
Lease, (MBIA Insured),
5.250% 07/01/04....... Aaa AAA 2,031,640
1,000,000 Charlottesville-Albemarle,
Virginia, Airport
Authority Revenue
Refunding, AMT,
6.125% 12/01/09....... NR BBB 973,930
1,000,000 Chesapeake, Virginia,
GO,
5.700% 08/01/01....... Aa AA 1,048,020
1,525,000 Chesapeake, Virginia,
Public Improvement,
GO, (State Aid
Withholding Insured),
5.000% 05/01/03....... Aa AA 1,543,696
6,195,000 Chesapeake, Virginia,
Revenue Refunding,
5.125% 12/01/05....... Aa AA 6,260,047
Chesterfield County,
Virginia, GO:
1,095,000 7.100% 03/01/00....... Aaa AA+ 1,179,972
1,000,000 Series A,
6.500% 01/15/01....... Aaa AA+ 1,074,360
Series B:
1,000,000 6.500% 01/01/02....... Aaa AA+ 1,085,250
2,120,000 Pre-refunded,
6.700% 01/01/01....... NR AA+ 2,319,068
2,000,000 Chesterfield County,
Virginia, Public
Improvement, GO,
5.900% 07/15/02....... Aaa AA+ 2,132,820
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Chesterfield County,
Virginia, Water and
Sewer Authority
Revenue, Revenue Bond:
$1,000,000 6.200% 11/01/05....... Aa AA $ 1,077,060
Series A:
2,000,000 5.500% 11/01/00....... Aa AA 2,073,060
2,020,000 5.625% 11/01/01....... Aa AA 2,111,930
1,320,000 Covington-Allegheny
County, Virginia,
Industrial Development
Authority, PCR,
(Westvaco Corporation
Project),
5.900% 03/01/05....... A1 A 1,484,182
1,000,000 Fairfax County,
Virginia, Industrial
Development Authority
Revenue Refunding,
(Inova Health Systems
Hospital Project),
6.100% 08/15/99....... Aa AA 1,046,760
Fairfax County,
Virginia, Public
Improvement, GO,
Series A:
3,500,000 4.900% 06/01/04....... Aaa AAA 3,519,775
3,500,000 Pre-refunded,
6.250% 04/01/99....... NR AAA 3,720,675
3,135,000 Fairfax County,
Virginia, Water and
Sewer Authority
Revenue,
5.100% 11/15/04....... Aaa AAA 3,170,143
Hampton, Virginia,
Public Improvement,
GO:
1,000,000 6.500% 01/01/00....... Aa AA- 1,061,050
2,190,000 Series C,
4.750% 08/01/05....... Aa AA- 2,137,396
Hampton Roads Sanitation
District, Virginia,
Sewer Revenue
Refunding:
3,000,000 4.500% 10/01/02....... Aa AA 2,961,210
1,000,000 Pre-refunded,
7.100% 07/01/99....... Aaa AAA 1,088,290
Henrico County,
Virginia, Industrial
Development Authority
Revenue:
2,105,000 Public Facilities Lease
Revenue,
7.500% 08/01/02....... Aa AA 2,371,725
3,500,000 Solid Waste, (Browning-
Ferris Industries Inc.
Project),
5.300% 12/01/11....... A2 A 3,500,735
3,500,000 Henrico County,
Virginia, Public
Improvement Authority,
4.700% 01/15/02....... Aaa AAA 3,517,360
1,500,000 Henrico County,
Virginia, Water and
Sewer Authority
Revenue,
Pre-refunded,
6.200% 05/01/02....... A1 AAA 1,558,215
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 51
NATIONS FUND
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,110,000 Henry County, Virginia,
Public Service
Authority, Water and
Sewer Authority
Revenue,
5.500% 11/15/99....... Aaa AAA $ 1,145,553
1,915,000 James City County, GO,
(FGIC Insured),
5.000% 12/15/08....... Aaa AAA 1,863,678
1,000,000 Leesburg, Virginia,
Revenue Refunding,
5.500% 08/01/06....... A1 A 1,022,380
Loudoun County,
Virginia, Industrial
Development Authority,
Hospital Revenue,
(Loudoun Hospital
Center), (FSA
Insured):
1,500,000 5.500% 06/01/08....... Aaa AAA 1,492,215
1,000,000 5.600% 06/01/09....... Aaa AAA 996,150
Loudoun County,
Virginia, Sanitation
Authority:
2,000,000 Refunding and
Improvement Authority,
5.000% 10/01/02....... Aa AA- 2,028,980
1,000,000 Water and Sewer
Authority Revenue,
(FGIC Insured),
5.800% 01/01/01....... Aaa AAA 1,045,400
Newport News, Virginia,
Public Improvement,
Series B:
2,750,000 5.200% 07/01/00....... Aa AA- 2,804,477
5,000,000 5.200% 11/01/04....... Aa AA- 5,095,600
Newport News, Virginia,
Water and Sewer
Authority Revenue:
Series A:
1,020,000 5.500% 06/01/01....... Aa AA- 1,057,679
1,095,000 5.600% 06/01/02....... Aa AA- 1,142,917
1,000,000 Series B,
5.100% 11/01/03....... Aa AA- 1,017,200
1,000,000 Norfolk, Virginia,
Public Improvement,
GO, Series A,
5.900% 02/01/06....... Aa AA 1,043,650
2,250,000 Norfolk, Virginia,
Redevelopment and
Housing Authority,
Educational Facility
Revenue, (Tidewater
Community College
Campus),
5.875% 11/01/15....... Aa AA 2,238,367
2,000,000 Norfolk, Virginia, Water
Revenue, (MBIA
Insured),
5.700% 11/01/10....... Aaa AAA 2,028,460
Portsmouth, Virginia,
Public Improvement:
1,000,000 5.000% 08/01/02....... A AA- 1,013,570
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Portsmouth, Virginia,
Public Improvement
(continued):
Pre-refunded:
$1,750,000 6.700% 08/01/03....... NR AA- $ 1,909,863
1,000,000 5.250% 08/01/04....... A AA- 1,020,520
1,735,000 6.800% 08/01/06....... NR AA- 1,899,409
1,000,000 6.800% 08/01/09....... NR AA- 1,094,760
Prince William County,
Virginia, GO, Series
A:
3,500,000 4.900% 08/01/05....... Aa AA 3,472,070
1,465,000 6.200% 12/01/10....... Aa AA 1,517,125
Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding:
1,775,000 (Potomoc Hospital
Corporation Project),
(GO of Hospital),
6.550% 10/01/05....... A NR 1,905,942
1,300,000 (Prince William Hospital
Project),
5.625% 04/01/12....... A NR 1,244,919
1,000,000 Prince William County,
Virginia, Revenue,
Pre-refunded,
6.300% 10/15/07....... NR A- 1,065,840
1,000,000 Richmond, Virginia,
Metropolitan
Expressway Authority,
Revenue Refunding,
Series A, (FGIC
Insured),
5.650% 07/15/00....... Aaa AAA 1,038,540
Richmond, Virginia,
Public Improvement,
GO:
Series A:
1,000,000 5.900% 01/15/99....... A1 AA 1,031,840
2,300,000 6.500% 01/15/02....... A1 AA 2,479,492
Pre-refunded:
1,000,000 6.200% 01/15/01....... A1 AA 1,077,150
1,000,000 6.700% 01/15/01....... Aaa AA 1,096,160
2,945,000 Series B,
5.500% 07/15/13....... A1 AA 2,928,773
2,000,000 Richmond, Virginia,
Public Utilities
Revenue, Series A,
6.900% 01/15/98....... A1 A+ 2,068,880
Roanoke, Virginia,
Public Improvement,
GO, Series B:
2,000,000 5.800% 08/01/99....... Aa AA 2,077,000
1,000,000 5.800% 08/01/00....... Aa AA 1,045,980
3,295,000 6.000% 08/01/03....... Aa AA 3,481,069
600,000 Roanoke, Virginia,
Redevelopment and
Housing Authority,
Multi-family Housing
Revenue Refunding,
United Dominion-Laurel
Ridge,
6.625% 05/01/23....... NR BBB+ 623,424
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 52
NATIONS FUND
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Southeastern Public
Service Authority,
Virginia, (MBIA
Insured):
$1,500,000 6.000% 07/01/15....... Aaa AAA $ 1,510,020
5,000,000 Series A,
5.100% 07/01/08....... Aaa AAA 4,943,050
Spotsylvania County,
Virginia, Public
Improvement, GO:
1,580,000 5.200% 07/15/01....... A1 A+ 1,616,150
2,320,000 5.875% 07/15/09....... A1 A+ 2,392,059
2,535,000 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue,
(Mary Baldwin College
Project),
6.600% 11/01/14....... NR NR 2,546,636
Suffolk, Virginia,
Refunding and
Improvement, GO:
1,110,000 5.400% 08/01/04....... A1 A 1,137,695
1,500,000 5.750% 08/01/08....... A1 A 1,532,160
2,000,000 University of Virginia,
Hospital Revenue Bond,
6.000% 06/01/13....... Aa AA 2,007,620
Upper Occoquan Sewer
Authority, Virginia,
Regional Sewer
Revenue, Revenue Bond,
(MBIA Insured):
2,625,000 5.850% 07/01/99....... Aaa AAA 2,726,614
2,000,000 6.250% 07/01/05....... Aaa AAA 2,167,920
1,000,000 Virginia Beach,
Virginia, Development
Authority Facilities,
Sentara Bayside
Hospital,
5.800% 11/01/99....... Aa AA 1,035,280
Virginia Beach,
Virginia, GO:
Pre-refunded:
1,190,000 6.850% 06/01/00....... NR NR 1,301,194
1,000,000 6.950% 06/01/00....... NR NR 1,096,780
1,000,000 Refunding,
5.550% 02/01/01....... Aa AA 1,036,890
Series A:
1,525,000 6.900% 10/01/00....... Aa AA 1,651,179
1,000,000 6.850% 06/01/01....... Aa AA 1,089,530
2,350,000 Virginia Biotechnology
Research Park
Authority, Lease
Revenue, (Biotech Two
Project),
5.750% 09/01/05....... Aa AA 2,470,297
Virginia College
Building Authority,
Educational Facilities
Revenue, University of
Richmond:
2,000,000 5.625% 11/01/02....... NR AA- 2,079,960
1,990,000 5.550% 11/01/05+...... Aa A1+ 2,011,432
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,000,000 Virginia Educational
Loan Authority,
Guaranteed Student
Loan Program,
Refunding, Series E,
ETM,
5.400% 03/01/98....... Aaa NR $ 1,019,290
Virginia State, Higher
Educational
Institutions Revenue,
GO:
1,175,000 6.000% 06/01/01....... Aaa AAA 1,240,260
1,000,000 Series A, Pre-refunded,
6.600% 06/01/99....... Aaa AAA 1,074,410
1,695,000 Virginia State, Housing
Development Authority,
Commonwealth Mortgage,
Series D, Sub-Series
D-3,
6.100% 01/01/15....... Aa1 AA+ 1,719,764
Virginia State, Public
Building Authority,
Series A:
1,970,000 Building Revenue
Refunding,
5.700% 08/01/00....... Aa AA 2,050,199
Correctional Facilities:
1,000,000 6.900% 02/01/99....... Aa AA 1,056,440
2,000,000 5.800% 08/01/02....... Aa AA 2,107,360
2,000,000 6.500% 08/01/11....... Aa AA 2,187,740
Virginia State, Public
School Authority
Revenue:
4,275,000 5.750% 01/01/00....... Aa AA 4,438,604
5,000,000 5.000% 01/01/04....... Aa AA 5,020,750
Series A:
1,000,000 6.000% 01/01/01....... Aa AA 1,048,040
2,195,000 5.400% 01/01/08....... Aa AA 2,202,331
1,000,000 6.500% 08/01/08....... Aa AA 1,076,260
1,480,000 Series B,
5.100% 01/01/05....... Aa AA 1,486,808
1,000,000 Virginia State
Residential Authority,
Sewer System Revenue,
(Hopewell Regional
Wastewater Facility),
Series A,
6.000% 10/01/15....... NR A 997,750
1,000,000 Virginia State
Residential Authority,
Water and Sewer System
Revenue, Series A,
5.500% 10/01/00....... NR AA 1,030,350
Virginia State
Transportation Board
Authority, Contract
Revenue:
2,105,000 5.100% 05/15/05....... Aa AA 2,116,556
3,000,000 Project A,
4.900% 05/15/03....... Aa AA 3,013,320
3,150,000 Route 28,
6.000% 04/01/02....... Aa AA 3,343,410
5,390,000 Route 58, Series A,
5.500% 05/15/09....... Aa AA 5,411,668
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 53
NATIONS FUND
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
<C> <S> <C> <C> <C>
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$2,470,000 Virginia State, Water
and Sewer Revenue
Authority, Revenue
Bond,
5.150% 10/01/07....... NR AA $ 2,449,548
Washington County,
Virginia, Industrial
Development Authority
Hospital Facility
Revenue Refunding,
First Mortgage,
(Johnston Memorial
Hospital):
1,000,000 5.625% 07/01/02......... A NR 1,024,300
1,000,000 6.000% 07/01/14......... A NR 989,240
1,500,000 Winchester, Virginia,
Industrial Development
Authority Revenue,
(AMBAC Insured),
6.150% 01/01/99....... Aaa AAA 1,554,945
-----------
220,571,038
-----------
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ALASKA -- 0.4%
$1,000,000 Alaska State, Student
Loan Corporation,
Student Loan Revenue,
Series A, AMT, (AMBAC
Insured),
5.250% 07/01/03....... Aaa AAA $ 999,910
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $213,876,722)............. 221,570,948
==========
TOTAL INVESTMENTS
(Cost $213,876,722*)................... 99.2% 221,570,948
OTHER ASSETS AND
LIABILITIES (NET)...................... 0.8 1,785,159
---- -----------
NET ASSETS............................... 100.0% $223,356,107
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1996.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
ETM Escrowed to Maturity
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 54
NATIONS FUND
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 102.3%
VIRGINIA -- 95.0%
$1,000,000 Augusta County,
Virginia, Industrial
Development
Authority, Hospital
Revenue Refunding,
(Augusta Hospital
Corporation), (AMBAC
Insured),
5.500% 09/01/15...... Aaa AAA $ 969,100
475,000 Chesapeake, Virginia,
Industrial
Development Authority
Revenue Refunding,
Port Facilities,
(Cargill Inc.
Project),
5.875% 03/01/13...... Aa3 AA- 481,089
500,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco Corporation
Project),
6.650% 09/01/18...... A1 A 533,125
250,000 Danville, Virginia,
Industrial
Development Authority
Revenue,
(International Paper
Company Project),
Series A, AMT,
6.500% 03/01/19...... A3 A- 259,075
500,000 Fairfax County,
Virginia, Industrial
Development Authority
Revenue Refunding,
(Inova Health Systems
Hospital Project),
5.500% 08/15/10...... Aa AA 490,935
1,000,000 Fairfax County,
Virginia, Sewer
Revenue Refunding,
(AMBAC Insured),
5.500% 11/15/13...... Aaa AAA 990,090
800,000 Giles County, Virginia,
Industrial
Development
Authority, Revenue
Exempt Facilities,
(Hoechst Celanese
Corporation Project),
AMT,
5.950% 12/01/25...... A2 A+ 803,808
400,000 Hampton, Virginia,
Museum Revenue
Refunding,
5.250% 01/01/09...... NR A- 384,244
500,000 Henrico County,
Virginia, Industrial
Development Authority
Revenue, Public
Facilities Lease
Revenue,
7.000% 08/01/13...... Aa AA 556,210
500,000 Henry County, Virginia,
GO,
5.750% 07/15/07...... A A 516,295
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 700,000 James City County,
Virginia, Public
Improvement, GO,
(FGIC Insured),
5.250% 12/15/14...... Aaa AAA $ 676,067
Loudoun County,
Virginia, Industrial
Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center),
(FSA Insured):
765,000 5.600% 06/01/09...... Aaa AAA 762,055
500,000 5.800% 06/01/20...... Aaa AAA 494,875
500,000 Lynchburg, Virginia,
GO, Pre-refunded,
7.000% 04/01/00...... Aaa NR 548,990
Peninsula Ports
Authority, Virginia,
Health Care
Facilities Revenue
Refunding:
600,000 (Mary Immaculate
Project),
6.875% 08/01/10...... NR BBB+ 624,180
500,000 (Riverside Health
Systems Project),
Series A,
6.625% 07/01/18...... Aa AA- 523,820
500,000 Pittsylvania County,
Virginia, Public
Improvement, GO,
5.850% 07/01/08...... A A 515,615
500,000 Poquoson, Virginia, GO,
Series A,
5.375% 01/01/16...... A1 A 496,105
1,000,000 Prince William County,
Virginia, Industrial
Development
Authority, Lease
Revenue, (ATCC
Project),
6.000% 02/01/14...... A NR 1,007,920
500,000 Prince William County,
Virginia, Park
Authority Revenue,
6.875% 10/15/16...... NR A- 537,700
800,000 Richmond, Virginia,
Metropolitan
Expressway Authority,
Revenue Refunding,
Series B, (FGIC
Insured),
6.250% 07/15/22...... Aaa AAA 832,392
1,390,000 Rivanna, Virginia,
Regional Water and
Sewer Authority,
Regional Water and
Sewer Systems Revenue
Refunding,
6.450% 10/01/12...... Aa A+ 1,476,430
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 55
NATIONS FUND
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$1,000,000 Staunton, Virginia,
Industrial
Development
Authority,
Educational
Facilities Revenue,
(Mary Baldwin College
Project),
6.600% 11/01/14...... NR NR $ 1,004,590
500,000 Virginia Beach,
Virginia, Public
Improvement
Refunding, GO,
5.750% 11/01/08...... Aa AA 517,380
500,000 Virginia State, Higher
Education
Institutions Revenue,
GO, Series C,
5.900% 06/01/05...... Aaa AAA 524,955
640,000 Virginia State, Public
School Authority
Revenue, Series A,
6.125% 08/01/11...... Aa AA 666,560
750,000 Virginia State,
Resource Authority,
Sewer Systems
Revenue, (Hopewell
Regional Wastewater
Facility), Series A,
AMT,
6.000% 10/01/15...... NR AA 748,313
500,000 Virginia State,
Resource Authority,
Water and Sewer
Systems Revenue,
(Fauquier County
Water and Sanitation
Authority), Series C,
6.125% 05/01/14...... NR AA 519,990
800,000 West Point, Virginia,
Industrial
Development
Authority, Solid
Waste Disposal
Revenue, (Chesapeake
Corporation Project),
Series A, AMT,
6.375% 03/01/19...... Baa3 BBB 799,000
-----------
19,260,908
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- 2.5%
$ 500,000 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight
Corporation Project),
Series D,
6.200% 10/01/09...... NR BBB- $ 503,325
-----------
PUERTO RICO -- 4.8%
875,000 Puerto Rico, Electric
Power Authority,
Power Revenue
Refunding, Series Y,
(MBIA Insured),
6.500% 07/01/06...... Aaa AAA 973,105
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $20,207,163)............ 20,737,338
==========
</TABLE>
<TABLE>
<CAPTION>
SHARES
<C> <S> <C> <C>
---------
MONEY MARKET FUND -- 1.4%
(Cost $292,000)
292,000 AIM Tax-Exempt Fund............. 292,000
=========
TOTAL INVESTMENTS
(Cost $20,499,163*)...................... 103.7% 21,029,338
OTHER ASSETS AND
LIABILITIES (NET)....................... (3.7) (750,147)
---- ----------
NET ASSETS................................ 100.0% $20,279,191
===== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 56
[THIS PAGE INTENTIONALLY LEFT BLANK]
53
<PAGE> 57
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT-TERM NATIONS FLORIDA
MUNICIPAL INTERMEDIATE NATIONS INTERMEDIATE
INCOME MUNICIPAL MUNICIPAL MUNICIPAL
FUND BOND FUND INCOME FUND BOND FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------
ASSETS:
Investments, at value (Note 1),
See accompanying schedules.................. $71,718,614 $92,478,960 $100,954,693 $50,894,081
Cash.......................................... 47,549 64,129 778 113
Interest receivable........................... 1,092,088 1,416,218 1,774,322 916,098
Dividends receivable.......................... 3,112 4,040 1,064 2,771
Receivable for Fund shares sold............... 361,805 199,258 68,872 325,963
Unamortized organization costs (Note 6)....... 16,960 16,790 -- 6,919
Other assets.................................. -- -- -- 138
----------- ----------- ------------ -----------
Total Assets................................ 73,240,128 94,179,395 102,799,729 52,146,083
----------- ----------- ------------ -----------
LIABILITIES:
Payable for investment securities purchased... 1,279,722 2,116,587 1,077,090 --
Payable for Fund shares redeemed.............. 1,260,186 9,326 262,916 34,329
Due to custodian.............................. -- -- -- --
Notes payable (Note 7)........................ -- -- -- --
Investment advisory fee payable (Note 2)...... 5,817 16,493 27,183 9,088
Administration fee payable (Note 2)........... 5,825 7,498 8,255 4,221
Shareholder servicing and distribution fees
payable (Note 3)............................ 5,698 1,200 14,871 2,240
Transfer agent fees payable (Note 2).......... 5,372 6,924 7,850 4,371
Custodian fees payable (Note 2)............... -- 2,987 2,924 2,169
Dividends payable............................. 249,880 357,107 352,969 197,504
Accrued Trustees' fees and expenses (Note
2).......................................... 2,829 3,443 4,523 2,124
Accrued expenses and other payables........... 31,558 19,138 14,872 26,198
----------- ----------- ------------ -----------
Total Liabilities........................... 2,846,887 2,540,703 1,773,453 282,244
----------- ----------- ------------ -----------
NET ASSETS.................................... $70,393,241 $91,638,692 $101,026,276 $51,863,839
=========== =========== ============ ===========
Investments, at cost.......................... $70,981,306 $90,512,293 $ 95,057,120 $49,633,205
=========== =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 58
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS GEORGIA NATIONS MARYLAND NATIONS NORTH CAROLINA
FLORIDA INTERMEDIATE GEORGIA INTERMEDIATE MARYLAND INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1),
See accompanying schedules...... $36,871,098 $57,074,101 $14,467,934 $ 82,592,192 $13,797,696 $ 38,073,169
Cash.............................. 18,321 -- 946 -- 758 515
Interest receivable............... 808,657 866,453 231,607 1,335,979 200,898 520,093
Dividends receivable.............. 426 1,497 1,775 2,704 237 1,287
Receivable for Fund shares sold... 193,452 173,320 32,874 106,206 1,134 397,502
Unamortized organization costs
(Note 6)........................ 1,083 3,084 1,083 -- 1,709 2,879
Other assets...................... 103 162 41 12,660 35 210
---------- ---------- ----------- ------------ ----------- --------------
Total Assets.................... 37,893,140 58,118,617 14,736,260 84,049,741 14,002,467 38,995,655
---------- ---------- ----------- ------------ ----------- --------------
LIABILITIES:
Payable for investment securities
purchased....................... -- -- -- -- -- --
Payable for Fund shares redeemed.. 15 22,546 10,543 66,391 535 150,572
Due to custodian.................. -- 107,697 -- 318,915 -- --
Notes payable (Note 7)............ 100,000 -- -- -- -- --
Investment advisory fee payable
(Note 2)........................ 10,185 10,413 2,961 17,037 2,799 6,305
Administration fee payable
(Note 2)........................ 3,067 4,613 1,183 6,902 1,135 3,112
Shareholder servicing and
distribution fees payable
(Note 3)........................ 16,491 5,573 7,613 5,686 5,822 4,674
Transfer agent fees payable
(Note 2)........................ 3,496 8,848 1,931 6,632 1,872 3,667
Custodian fees payable (Note 2)... -- 1,780 -- 2,563 -- 2,300
Dividends payable................. 142,422 212,253 28,232 -- 22,473 140,107
Accrued Trustees' fees and
expenses (Note 2)............... 1,561 3,753 617 3,638 554 1,583
Accrued expenses and other
payables........................ 25,664 30,243 14,857 27,535 18,503 18,231
---------- ---------- ----------- ------------ ----------- --------------
Total Liabilities............... 302,901 407,719 67,937 455,299 53,693 330,551
---------- ---------- ----------- ------------ ----------- --------------
NET ASSETS........................ $37,590,239 $57,710,898 $14,668,323 $ 83,594,442 $13,948,774 $ 38,665,104
=========== =========== =========== ============ =========== ==============
Investments, at cost.............. $35,931,442 $55,391,321 $14,224,426 $ 80,685,811 $13,511,970 $ 36,911,174
=========== =========== =========== ============ =========== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 59
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS SOUTH CAROLINA NATIONS
NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
<S> <C> <C> <C>
-------------------------------------------------
ASSETS:
Investments, at value (Note 1),
See accompanying schedules................................ $ 28,739,023 $ 69,805,690 $ 17,733,429
Cash........................................................ 399 227 63
Interest receivable......................................... 442,263 1,055,970 299,037
Dividends receivable........................................ 1,523 10,406 1,245
Receivable for investment securities sold................... -- -- --
Receivable for Fund shares sold............................. 122,627 589,889 111,521
Unamortized organization costs (Note 6)..................... 1,083 6,378 1,292
Other assets................................................ 85 192 42
-------------- -------------- --------------
Total Assets.............................................. 29,307,003 71,468,752 18,146,629
-------------- -------------- --------------
LIABILITIES:
Payable for investment securities purchased................. -- -- --
Payable for Fund shares redeemed............................ 96,177 248,855 22,609
Due to custodian............................................ -- -- --
Notes payable (Note 7)...................................... -- -- --
Investment advisory fee payable (Note 2).................... 7,593 13,843 4,269
Administration fee payable (Note 2)......................... 2,359 5,767 1,467
Shareholder servicing and distribution fees payable (Note
3)........................................................ 16,147 8,724 9,013
Transfer agent fees payable (Note 2)........................ 2,830 5,579 2,123
Custodian fees payable (Note 2)............................. -- 2,376 --
Dividends payable........................................... 101,642 270,167 65,943
Accrued Trustees' fees and expenses (Note 2)................ 1,251 2,939 684
Accrued expenses and other payables......................... 20,921 28,238 15,794
-------------- -------------- --------------
Total Liabilities......................................... 248,920 586,488 121,902
-------------- -------------- --------------
NET ASSETS.................................................. $ 29,058,083 $ 70,882,264 $ 18,024,727
============== ============== ==============
Investments, at cost........................................ $ 27,913,805 $ 68,242,907 $ 17,415,374
============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 60
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
TENNESSEE NATIONS TEXAS NATIONS VIRGINIA NATIONS
INTERMEDIATE TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1),
See accompanying schedules.............. $18,472,307 $8,146,225 $32,628,680 $18,269,462 $221,570,948 $21,029,338
Cash...................................... 268 468 662 218 -- 614
Interest receivable....................... 291,244 127,226 493,968 258,818 3,496,363 326,437
Dividends receivable...................... 973 217 1,367 363 2,135 641
Receivable for investment securities sold. -- -- -- -- 2,045,764 --
Receivable for Fund shares sold........... 29,364 68,181 311,609 23,853 95,921 226
Unamortized organization costs (Note 6)... 3,101 1,747 1,553 2,346 -- 1,083
Other assets.............................. 48 73 83 47 679 55
----------- ---------- ---------- ---------- ----------- -----------
Total Assets............................ 18,797,305 8,344,137 33,437,922 18,555,107 227,211,810 21,358,394
----------- ---------- ---------- ---------- ----------- -----------
LIABILITIES:
Payable for investment securities
purchased................................ -- -- 614,068 982,510 2,549,872 1,005,867
Payable for Fund shares redeemed.......... 5,000 22 6,011 14 371,567 456
Due to custodian.......................... -- -- -- -- 11,558 --
Notes payable (Note 7).................... -- -- -- -- 100,000 --
Investment advisory fee payable (Note 2).. 2,185 902 5,486 3,996 50,239 4,997
Administration fee payable (Note 2)....... 1,526 671 2,667 1,433 18,524 1,652
Shareholder servicing and distribution
fees payable (Note 3)................... 2,805 3,963 1,343 7,369 17,590 9,441
Transfer agent fees payable (Note 2)...... 2,171 1,514 3,171 2,152 16,082 2,288
Custodian fees payable (Note 2)........... 774 -- 1,334 -- 5,771 --
Dividends payable......................... 66,880 29,544 120,899 64,524 661,674 38,480
Accrued Trustees' fees and expenses
(Note 2)................................ 759 324 1,306 725 9,911 840
Accrued expenses and other payables....... 17,227 13,651 19,486 16,261 42,915 15,182
----------- ---------- ---------- ---------- ----------- -----------
Total Liabilities....................... 99,327 50,591 775,771 1,078,984 3,855,703 1,079,203
----------- ---------- ---------- ---------- ----------- -----------
NET ASSETS................................ $18,697,978 $8,293,546 $32,662,151 $17,476,123 $223,356,107 $20,279,191
=========== ========== =========== =========== ============ ===========
Investments, at cost...................... $18,165,662 $7,917,437 $32,124,456 $17,538,151 $213,876,722 $20,499,163
=========== ========== =========== =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 61
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS NATIONS FLORIDA
SHORT-TERM INTERMEDIATE NATIONS INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
INCOME FUND BOND FUND INCOME FUND BOND FUND
------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income/(distributions in excess of net
investment income).......................... $ 891 $ 25,134 $ 28,068 $ (3,525)
Accumulated net realized loss on investments
sold........................................ (748,746) (16,530) (3,983,111) (991,771)
Net unrealized appreciation of investments.... 737,308 1,966,667 5,897,573 1,260,876
Paid-in capital............................... 70,403,788 89,663,421 99,083,746 51,598,259
----------- ----------- ------------ -----------
$70,393,241 $91,638,692 $101,026,276 $51,863,839
=========== =========== ============ ===========
NET ASSETS:
Primary A Shares.............................. $55,595,072 $87,676,333 $ 67,485,274 $44,819,471
=========== =========== ============ ===========
Investor A Shares............................. $ 4,415,593 $ 1,538,471 $ 15,319,733 $ 2,883,672
=========== =========== ============ ===========
Investor C Shares............................. $ 1,191,800 $ 941,199 $ 1,908,070 $ 119,930
=========== =========== ============ ===========
Investor N Shares............................. $ 9,190,776 $ 1,482,689 $ 16,313,199 $ 4,040,766
=========== =========== ============ ===========
SHARES OUTSTANDING:
Primary A Shares.............................. 5,577,747 8,732,744 6,167,456 4,293,910
=========== =========== ============ ===========
Investor A Shares............................. 443,041 153,235 1,400,069 276,261
=========== =========== ============ ===========
Investor C Shares............................. 119,571 93,743 174,377 11,491
=========== =========== ============ ===========
Investor N Shares............................. 922,092 147,676 1,490,854 387,120
=========== =========== ============ ===========
PRIMARY A SHARES:
Net asset value, offering and redemption price
per share................................... $9.97 $10.04 $10.94 $10.44
===== ====== ====== ======
INVESTOR A SHARES:
Net asset value, offering and redemption price
per share................................... $9.97 $10.04 $10.94 $10.44
===== ====== ====== ======
INVESTOR C SHARES:
Net asset value and offering price per
share*...................................... $9.97 $10.04 $10.94 $10.44
===== ====== ====== ======
INVESTOR N SHARES:
Net asset value, offering and redemption price
per share................................... $9.97 $10.04 $10.94 $10.44
===== ====== ====== ======
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 62
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS GEORGIA NATIONS
FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
---------------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income/(distributions in excess of net
investment income).......................... $ 11,038 $ (4,377) $ 431
Accumulated net realized loss on investments
sold........................................ (1,012,135) (335,467) (385,344)
Net unrealized appreciation of investments.... 939,656 1,682,780 243,508
Paid-in capital............................... 37,651,680 56,367,962 14,809,728
----------- ----------- -----------
$37,590,239 $57,710,898 $14,668,323
=========== =========== ===========
NET ASSETS:
Primary A Shares.............................. $13,489,891 $38,860,725 $ 3,030,593
=========== =========== ===========
Investor A Shares............................. $ 2,095,897 $ 8,679,377 $ 153,169
=========== =========== ===========
Investor C Shares............................. $ 39,041 $ 2,412,449 $ 70,612
=========== =========== ===========
Investor N Shares............................. $21,965,410 $ 7,758,347 $11,413,949
=========== =========== ===========
SHARES OUTSTANDING:
Primary A Shares.............................. 1,414,396 3,655,269 317,575
=========== =========== ===========
Investor A Shares............................. 219,746 816,379 16,050
=========== =========== ===========
Investor C Shares............................. 4,093 226,915 7,399
=========== =========== ===========
Investor N Shares............................. 2,303,068 729,753 1,196,021
=========== =========== ===========
PRIMARY A SHARES:
Net asset value, offering and redemption price
per share................................... $9.54 $10.63 $9.54
===== ====== =====
INVESTOR A SHARES:
Net asset value, offering and redemption price
per share................................... $9.54 $10.63 $9.54
===== ====== =====
INVESTOR C SHARES:
Net asset value and offering price per
share*...................................... $9.54 $10.63 $9.54
===== ====== =====
INVESTOR N SHARES:
Net asset value, offering and redemption price
per share................................... $9.54 $10.63 $9.54
===== ====== =====
- ------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales Charge.
<CAPTION>
NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA
INTERMEDIATE MARYLAND INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
-------------------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income/(distributions in excess of net
investment income).......................... $ 28,864 $ 2,072 $ 4,357
Accumulated net realized loss on investments
sold........................................ (1,043,390) (87,815) (267,883)
Net unrealized appreciation of investments.... 1,906,381 285,726 1,161,995
Paid-in capital............................... 82,702,587 13,748,791 37,766,635
----------- ----------- ------------
$83,594,442 $13,948,774 $ 38,665,104
=========== =========== ============
NET ASSETS:
Primary A Shares.............................. $59,824,904 $ 3,652,797 $ 24,396,847
=========== =========== ============
Investor A Shares............................. $16,809,642 $ 1,519,744 $ 5,656,081
=========== =========== ============
Investor C Shares............................. $ 2,574,688 $ 2,445 $ 1,406,005
=========== =========== ============
Investor N Shares............................. $ 4,385,208 $ 8,773,788 $ 7,206,171
=========== =========== ============
SHARES OUTSTANDING:
Primary A Shares.............................. 5,561,684 386,801 2,351,374
=========== =========== ============
Investor A Shares............................. 1,562,708 160,925 545,132
=========== =========== ============
Investor C Shares............................. 239,358 259 135,512
=========== =========== ============
Investor N Shares............................. 407,673 929,048 694,534
=========== =========== ============
PRIMARY A SHARES:
Net asset value, offering and redemption price
per share................................... $10.76 $9.44 $10.38
====== ===== ======
INVESTOR A SHARES:
Net asset value, offering and redemption price
per share................................... $10.76 $9.44 $10.38
====== ===== ======
INVESTOR C SHARES:
Net asset value and offering price per
share*...................................... $10.76 $9.44 $10.38
====== ===== ======
INVESTOR N SHARES:
Net asset value, offering and redemption price
per share................................... $10.76 $9.44 $10.38
====== ===== ======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 63
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS SOUTH NATIONS
NORTH CAROLINA SOUTH
CAROLINA INTERMEDIATE CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
-----------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income/(distributions in excess of
net investment income........................................ $ 16,686 $ 28 $ 2,070
Accumulated net realized loss on investments sold.............. (1,100,866) (343,749) (57,516)
Net unrealized appreciation of investments..................... 825,218 1,562,783 318,055
Paid-in capital................................................ 29,317,045 69,663,202 17,762,118
----------- ----------- -----------
$29,058,083 $70,882,264 $18,024,727
=========== =========== ===========
NET ASSETS:
Primary A Shares............................................... $ 2,307,753 $44,857,693 $ 3,831,877
=========== =========== ===========
Investor A Shares.............................................. $ 529,183 $13,742,061 $ 978,692
=========== =========== ===========
Investor C Shares.............................................. $ 17,903 $ 5,354,445 $ 248,477
=========== =========== ===========
Investor N Shares.............................................. $26,203,244 $ 6,928,065 $12,965,681
=========== =========== ===========
SHARES OUTSTANDING:
Primary A Shares............................................... 242,273 4,261,954 389,468
=========== =========== ===========
Investor A Shares.............................................. 55,553 1,305,657 99,469
=========== =========== ===========
Investor C Shares.............................................. 1,879 508,720 25,255
=========== =========== ===========
Investor N Shares.............................................. 2,750,858 658,243 1,317,824
=========== =========== ===========
PRIMARY A SHARES:
Net asset value, offering and redemption price per share....... $9.53 $10.53 $9.84
===== ====== =====
INVESTOR A SHARES:
Net asset value, offering and redemption price per share....... $9.53 $10.53 $9.84
===== ====== =====
INVESTOR C SHARES:
Net asset value and offering price per share*.................. $9.53 $10.53 $9.84
===== ====== =====
INVESTOR N SHARES:
Net asset value, offering and redemption price per share....... $9.53 $10.53 $9.84
===== ====== =====
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 64
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
-----------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income/(distributions in excess of
net investment income........................................ $ (487) $ 5,215 $ (1,938)
Accumulated net realized loss on investments sold.............. (309,769) (215,630) (1,046,373)
Net unrealized appreciation of investments..................... 306,645 228,788 504,224
Paid-in capital................................................ 18,701,589 8,275,173 33,206,238
----------- ---------- -----------
$18,697,978 $8,293,546 $32,662,151
=========== ========= ==========
NET ASSETS:
Primary A Shares............................................... $ 8,519,878 $1,419,670 $28,813,270
=========== ========= ==========
Investor A Shares.............................................. $ 6,874,375 $ 997,544 $ 956,248
=========== ========= ==========
Investor C Shares.............................................. $ 2,341 $ 37,570 $ 580,966
=========== ========= ==========
Investor N Shares.............................................. $ 3,301,384 $5,838,762 $ 2,311,667
=========== ========= ==========
SHARES OUTSTANDING:
Primary A Shares............................................... 844,272 146,068 2,822,959
=========== ========= ==========
Investor A Shares.............................................. 681,225 102,636 93,687
=========== ========= ==========
Investor C Shares.............................................. 232 3,866 56,918
=========== ========= ==========
Investor N Shares.............................................. 327,148 600,747 226,481
=========== ========= ==========
PRIMARY A SHARES:
Net asset value, offering and redemption price per share....... $10.09 $9.72 $10.21
====== ===== ======
INVESTOR A SHARES:
Net asset value, offering and redemption price per share....... $10.09 $9.72 $10.21
====== ===== ======
INVESTOR C SHARES:
Net asset value and offering price per share*.................. $10.09 $9.72 $10.21
====== ===== ======
INVESTOR N SHARES:
Net asset value, offering and redemption price per share....... $10.09 $9.72 $10.21
====== ===== ======
</TABLE>
- --------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS
TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
--------------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income/(distributions in excess of
net investment income........................................ $ 8,575 $ 138,617 $ 3,603
Accumulated net realized loss on investments sold.............. (842,039) (1,521,218) (737,973)
Net unrealized appreciation of investments..................... 731,311 7,694,226 530,175
Paid-in capital................................................ 17,578,276 217,044,482 20,483,386
----------- ------------ -----------
$17,476,123 $223,356,107 $20,279,191
========== =========== ==========
NET ASSETS:
Primary A Shares............................................... $ 6,044,660 $144,799,953 $ 4,335,961
========== =========== ==========
Investor A Shares.............................................. $ 369,761 $ 60,443,678 $ 704,167
========== =========== ==========
Investor C Shares.............................................. $ 71,734 $ 6,730,193 $ 44,398
========== =========== ==========
Investor N Shares.............................................. $10,989,968 $ 11,382,283 $15,194,665
========== =========== ==========
SHARES OUTSTANDING:
Primary A Shares............................................... 633,826 13,591,500 458,847
========== =========== ==========
Investor A Shares.............................................. 38,772 5,673,444 74,518
========== =========== ==========
Investor C Shares.............................................. 7,522 631,722 4,698
========== =========== ==========
Investor N Shares.............................................. 1,152,384 1,068,386 1,607,961
========== =========== ==========
PRIMARY A SHARES:
Net asset value, offering and redemption price per share....... $9.54 $10.65 $9.45
===== ====== =====
INVESTOR A SHARES:
Net asset value, offering and redemption price per share....... $9.54 $10.65 $9.45
===== ====== =====
INVESTOR C SHARES:
Net asset value and offering price per share*.................. $9.54 $10.65 $9.45
===== ====== =====
INVESTOR N SHARES:
Net asset value, offering and redemption price per share....... $9.54 $10.65 $9.45
===== ====== =====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 65
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS
SHORT-TERM NATIONS FLORIDA
MUNICIPAL INTERMEDIATE NATIONS INTERMEDIATE
INCOME MUNICIPAL MUNICIPAL MUNICIPAL
FUND BOND FUND INCOME FUND BOND FUND
--------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $1,601,554 $2,266,610 $3,193,062 $1,315,309
Dividends................................................. 10,633 48,159 8,798 27,703
---------- ---------- ----------- ----------
Total investment income................................. 1,612,187 2,314,769 3,201,860 1,343,012
---------- ---------- ----------- ----------
EXPENSES:
Investment advisory fee (Note 2).......................... 167,916 220,062 315,957 128,618
Administration fee (Note 2)............................... 33,583 44,012 52,660 25,724
Transfer agent fees (Note 2).............................. 22,481 28,780 34,187 18,072
Custodian fees (Note 2)................................... 6,555 8,359 8,908 6,056
Legal and audit fees...................................... 11,359 12,864 18,682 12,518
Trustees' fees and expenses (Note 2)...................... 1,960 2,476 2,950 1,445
Amortization of organization costs (Note 6)............... 4,178 4,579 -- 2,882
Registration and filing fees.............................. 25,217 17,772 16,719 2,110
Other..................................................... 11,130 19,345 25,332 9,880
---------- ---------- ----------- ----------
Subtotal................................................ 284,379 358,249 475,395 207,305
Shareholder servicing and distribution fees (Note 3):
Investor A Shares....................................... 6,245 1,913 20,228 2,156
Investor C Shares....................................... 3,296 1,369 4,856 496
Investor N Shares....................................... 19,152 4,011 61,956 10,008
Fees waived by investment adviser and/or custodian (Note
2)...................................................... (149,223) (137,843) (155,561) (78,675)
---------- ---------- ----------- ----------
Total expenses.......................................... 163,849 227,699 406,874 141,290
---------- ---------- ----------- ----------
NET INVESTMENT INCOME..................................... 1,448,338 2,087,070 2,794,986 1,201,722
---------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period.................................................. (40,586) 327,312 392,399 (22,228)
Change in unrealized appreciation/(depreciation) of
investments during the period........................... (60,346) (120,814) 551,780 (88,727)
---------- ---------- ----------- ----------
Net realized and unrealized gain/(loss) on investments.... (100,932) 206,498 944,179 (110,955)
---------- ---------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................................... $1,347,406 $2,293,568 $3,739,165 $1,090,767
========== ========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 66
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
For the Six Months Ended September 30, 1996 (unaudited)
<TABLE>
<CAPTION>
NATIONS
NATIONS GEORGIA NATIONS
FLORIDA INTERMEDIATE GEORGIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
<S> <C> <C> <C>
------------------------------------------------------
INVESTMENT INCOME:
Interest ................................................... $ 1,085,886 $ 1,464,591 $ 391,375
Dividends .................................................. 9,711 15,667 9,319
--------------- --------------- ---------------
Total investment income .................................. 1,095,597 1,480,258 400,694
--------------- --------------- ---------------
EXPENSES:
Investment advisory fee (Note 2) ........................... 115,017 141,282 43,013
Administration fee (Note 2) ................................ 19,169 28,257 7,169
Transfer agent fees (Note 2) ............................... 14,261 19,540 7,166
Custodian fees (Note 2) .................................... 4,485 5,141 2,764
Legal and audit fees ....................................... 11,802 12,675 7,524
Trustees' fees and organization costs (Note 6) ............. 1,055 1,629 417
Amortization of organization costs (Note 6) ................ 250 1,828 250
Registration and filing fees ............................... 1,360 2,564 699
Other ...................................................... 12,720 12,437 4,872
--------------- --------------- ---------------
Subtotal .......................................... 180,119 225,353 73,874
Shareholder servicing and distribution fees (Note 3:) ......
Investor A Shares ........................................ 1,961 8,535 96
Investor C Shares ........................................ 96 6,004 173
Investor N Shares ........................................ 85,829 19,716 43,719
Fees waived by investment adviser and/or custodian
(Note 2). ................................................ (64,229) (83,582) (30,844)
--------------- --------------- ---------------
Total expenses ........................................... 203,776 176,026 87,018
--------------- --------------- ---------------
NET INVESTMENT INCOME ...................................... 891,821 1,304,232 313,676
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENT (NOTES 1 AND 4): ............................
Net realized gain/(loss) on investments sold during the
period ..................................................... (96,685) 5,970 10,670
Change in unrealized appreciation/(depreciation) of
investments during the period ............................ 339,473 851 89,093
--------------- --------------- ---------------
Net realized and unrealized gain/(loss) in investments .... 242,788 6,821 99,763
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................................... $ 1,134,609 $ 1,311,053 $ 413,439
=============== =============== ===============
<CAPTION>
NATIONS NATIONS
MARYLAND NATIONS NORTH CAROLINA
INTERMEDIATE MARYLAND INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
<S> <C> <C> <C>
------------------------------------------------------------
INVESTMENT INCOME:
Interest ................................................... $ 2,217,201 $ 371,782 $ 979,024
Dividends .................................................. 15,030 4,331 17,594
--------------- --------------- ---------------
Total investment income .................................. 2,232,231 376,113 996,618
--------------- --------------- ---------------
EXPENSES:
Investment advisory fee (Note 2) ........................... 214,321 40,960 98,506
Administration fee (Note 2) ................................ 42,864 6,827 19,702
Transfer agent fees (Note 2) ............................... 28,322 6,923 14,760
Custodian fees (Note 2) .................................... 7,559 2,520 5,674
Legal and audit fees ....................................... 13,226 8,544 10,349
Trustees' fees and expenses (Note 2) ....................... 3,065 380 1,092
Amortization of organization costs (Note 6) ................ -- 400 1,199
Registration and filing fees ................................ 6,844 1,287 1,759
Other ...................................................... 13,181 7,352 6,270
--------------- --------------- ---------------
Subtotal ................................................. 329,382 75,193 159,311
Shareholder servicing and distribution fees (Note 3:)
Investor A Shares ........................................ 17,959 1,458 7,087
Investor C Shares ........................................ 6,793 6 3,467
Investor N Shares ........................................ 11,013 34,018 19,072
Fees waived by investment adviser and/or custodian
(Note 2). ................................................ (114,569) (33,850) (60,679)
--------------- --------------- ---------------
Total expenses ........................................... 250,578 76,825 128,258
--------------- --------------- ---------------
NET INVESTMENT INCOME ...................................... 1,981,653 299,288 868,360
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENT (NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period ..................................................... (57,911) (36,903) 61,284
Change in unrealized appreciation/(depreciation) of
investments during the period ............................ (292,688) 112,199 32,646
--------------- --------------- ---------------
Net realized and unrealized gain/(loss) on investments ..... (350,599) 75,296 93,930
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................................... $ 1,631,054 $ 374,584 $ 962,290
=============== =============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 67
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS SOUTH CAROLINA NATIONS
NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest................................................ $ 812,629 $1,828,031 $481,338
Dividends............................................... 5,145 27,010 11,517
-------------- -------------- --------------
Total investment income............................... 817,774 1,855,041 492,855
-------------- -------------- --------------
EXPENSES:
Investment advisory fee (Note 2)........................ 87,360 173,372 52,357
Administration fee (Note 2)............................. 14,560 34,674 8,726
Transfer agent fees (Note 2)............................ 11,429 23,326 8,019
Custodian fees (Note 2)................................. 3,438 6,576 2,596
Legal and audit fees.................................... 10,409 13,468 7,927
Trustees' fees and expenses (Note 2).................... 825 2,002 485
Amortization of organization costs (Note 6)............. 251 3,602 300
Registration and filing fees............................ 1,380 3,225 756
Other................................................... 8,059 11,667 5,342
-------------- -------------- --------------
Subtotal.............................................. 137,711 271,912 86,508
Shareholder servicing and distribution fees (Note 3):
Investor A Shares..................................... 464 14,025 1,104
Investor C Shares..................................... 44 13,883 622
Investor N Shares..................................... 100,970 17,477 47,477
Fees waived by investment adviser and/or custodian (Note
2).................................................... (49,042) (98,824) (33,987)
-------------- -------------- --------------
Total expenses........................................ 190,147 218,473 101,724
-------------- -------------- --------------
NET INVESTMENT INCOME................................... 627,627 1,636,568 391,131
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period................................................ (147,268) 76,085 (24,037)
Change in unrealized appreciation/(depreciation) of
investments during the period......................... 230,908 (12,717) 149,259
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on
investments........................................... 83,640 63,368 125,222
-------------- -------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $ 711,267 $1,699,936 $516,353
============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 68
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
----------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest................................................ $466,389 $221,726 $812,561
Dividends............................................... 12,125 4,724 13,166
------------ --------- ------------
Total investment income............................... 478,514 226,450 825,727
------------ --------- ------------
EXPENSES:
Investment advisory fee (Note 2)........................ 47,486 24,530 81,588
Administration fee (Note 2)............................. 9,497 4,088 16,318
Transfer agent fees (Note 2)............................ 8,458 5,328 12,587
Custodian fees (Note 2)................................. 3,396 1,981 3,667
Legal and audit fees.................................... 8,165 7,097 9,553
Trustees' fees and expenses (Note 2).................... 519 228 916
Amortization of organization costs (Note 6)............. 994 410 621
Registration and filing fees............................ 2,303 1,227 1,992
Other................................................... 6,403 4,663 7,276
------------ --------- ------------
Subtotal.............................................. 87,221 49,552 134,518
Shareholder servicing and distribution fees (Note 3):
Investor A Shares..................................... 7,209 976 795
Investor C Shares..................................... 6 92 1,431
Investor N Shares..................................... 8,602 22,167 6,476
Fees waived by investment adviser and/or custodian (Note
2).................................................... (39,721) (24,925) (52,894)
------------ --------- ------------
Total expenses........................................ 63,317 47,862 90,326
------------ --------- ------------
NET INVESTMENT INCOME................................... 415,197 178,588 735,401
------------ --------- ------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period................................................ 2,848 (6,781) (28,640)
Change in unrealized appreciation/(depreciation) of
investments during the period......................... (15,671) 39,039 54,298
------------ --------- ------------
Net realized and unrealized gain/(loss) on
investments........................................... (12,823) 32,258 25,658
------------ --------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $402,374 $210,846 $761,059
============ ========= ============
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS
TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest................................................ $480,934 $ 6,105,530 $ 565,480
Dividends............................................... 8,122 33,863 7,372
--------- ------------ ---------
Total investment income............................... 489,056 6,139,393 572,852
--------- ------------ ---------
EXPENSES:
Investment advisory fee (Note 2)........................ 52,502 578,369 60,179
Administration fee (Note 2)............................. 8,750 115,674 10,030
Transfer agent fees (Note 2)............................ 8,111 71,218 8,816
Custodian fees (Note 2)................................. 3,775 17,115 3,322
Legal and audit fees.................................... 7,977 22,454 7,512
Trustees' fees and expenses (Note 2).................... 496 6,562 574
Amortization of organization costs (Note 6)............. 554 -- 250
Registration and filing fees............................ 939 9,590 849
Other................................................... 5,180 25,201 4,599
--------- ------------ ---------
Subtotal.............................................. 88,284 846,183 96,131
Shareholder servicing and distribution fees (Note 3):
Investor A Shares..................................... 351 63,203 687
Investor C Shares..................................... 175 17,076 108
Investor N Shares..................................... 42,445 29,238 57,525
Fees waived by investment adviser and/or custodian (Note
2).................................................... (35,451) (265,824) (35,883)
--------- ------------ ---------
Total expenses........................................ 95,804 689,876 118,568
--------- ------------ ---------
NET INVESTMENT INCOME................................... 393,252 5,449,517 454,284
--------- ------------ ---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period................................................ (34,585) 153,466 (115,068)
Change in unrealized appreciation/(depreciation) of
investments during the period......................... 139,880 (1,121,536) 269,163
--------- ------------ ---------
Net realized and unrealized gain/(loss) on
investments........................................... 105,295 (968,070) 154,095
--------- ------------ ---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $498,547 $ 4,481,447 $ 608,379
========= ============ =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 69
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS NATIONS FLORIDA
SHORT-TERM INTERMEDIATE NATIONS INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
INCOME FUND BOND FUND INCOME FUND BOND FUND
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income............................. $ 1,448,338 $ 2,087,070 $ 2,794,986 $ 1,201,722
Net realized gain/(loss) on investments........... (40,586) 327,312 392,399 (22,228)
Change in unrealized appreciation/(depreciation)
of investments.................................. (60,346) (120,814) 551,780 (88,727)
----------- ----------- ------------ -----------
Net increase in net assets resulting from
operations...................................... 1,347,406 2,293,568 3,739,165 1,090,767
Distributions to shareholders from net investment
income:
Primary A Shares................................ (1,066,053) (1,997,618) (1,819,336) (1,063,573)
Investor A Shares............................... (127,205) (43,582) (534,624) (48,789)
Investor C Shares............................... (37,956) (11,693) (48,527) (4,252)
Investor N Shares............................... (217,180) (34,177) (392,499) (85,108)
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares................................ 7,137,491 10,050,416 (1,203,934) (71,562)
Investor A Shares............................... (178,531) 40,390 (10,866,989) 857,984
Investor C Shares............................... (875,755) 222,016 (281,752) (153,468)
Investor N Shares............................... (4,630,495) (142,028) (714,497) 48,950
----------- ---------- ----------- ----------
Net increase/(decrease) in net assets............. 1,351,722 10,377,292 (12,122,993) 570,949
NET ASSETS:
Beginning of period............................... 69,041,519 81,261,400 113,149,269 51,292,890
----------- ----------- ------------ -----------
End of period..................................... $70,393,241 $91,638,692 $101,026,276 $51,863,839
=========== =========== ============ ===========
Undistributed net investment income/(distributions
in excess of net investment income) at end of
period.......................................... $ 891 $ 25,134 $ 28,068 $ (3,525)
=========== =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 70
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS GEORGIA NATIONS MARYLAND NATIONS NORTH CAROLINA
FLORIDA INTERMEDIATE GEORGIA INTERMEDIATE MARYLAND INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income............ $ 891,821 $ 1,304,232 $ 313,676 $ 1,981,653 $ 299,288 $ 868,360
Net realized gain/(loss)
on investments................. (96,685) 5,970 10,670 (57,911) (36,903) 61,284
Change in unrealized
appreciation/(depreciation)
of investments................. 339,473 851 89,093 (292,688) 112,199 32,646
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations...... 1,134,609 1,311,053 413,439 1,631,054 374,584 962,290
Distributions to shareholders
from net investment income:
Primary A Shares............... (343,538) (891,809) (62,684) (1,426,604) (77,546) (532,371)
Investor A Shares.............. (48,146) (193,621) (2,289) (405,257) (33,417) (154,735)
Investor C Shares.............. (1,026) (50,926) (1,550) (57,341) (53) (28,109)
Investor N Shares.............. (499,111) (167,874) (247,153) (92,450) (188,274) (153,179)
Net increase/(decrease) in net
assets from Fund share
transactions:
Primary A Shares............... 358,131 629,575 930,859 (1,284,510) 836,839 3,171,380
Investor A Shares.............. 237,726 56,740 144,659 (2,552,947) 423,503 (2,044,590)
Investor C Shares.............. 881 (32,023) 1,550 (312,999) 53 25,576
Investor N Shares.............. (2,114,264) (339,887) (905,717) (97,644) (924,501) (894,571)
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in
net assets..................... (1,274,738) 321,228 271,114 (4,598,698) 411,188 351,691
NET ASSETS:
Beginning of period.............. 38,864,977 57,389,670 14,397,209 88,193,140 13,537,586 38,313,413
----------- ----------- ----------- ----------- ----------- -----------
End of period.................... $37,590,239 $57,710,898 $14,668,323 $83,594,442 $13,948,774 $ 38,665,104
=========== =========== =========== =========== =========== ============
Undistributed net investment
income/(distributions in
excess of net investment
income) at end of period....... $ 11,038 $ (4,377) $ 431 $ 28,864 $ 2,072 $ 4,357
=========== =========== =========== =========== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 71
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS SOUTH CAROLINA NATIONS
NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
---------------------------------------------------
<S> <C> <C> <C>
Net investment income........................................ $ 627,627 $ 1,636,568 $ 391,131
Net realized gain/(loss) on investments...................... (147,268) 76,085 (24,037)
Change in unrealized appreciation/(depreciation) of
investments................................................ 230,908 (12,717) 149,259
------------ ------------ ------------
Net increase in net assets resulting from operations......... 711,267 1,699,936 516,353
Distributions to shareholders from net investment income:
Primary A Shares........................................... (43,522) (1,041,314) (84,359)
Investor A Shares.......................................... (11,324) (323,413) (27,261)
Investor C Shares.......................................... (393) (120,811) (5,676)
Investor N Shares.......................................... (572,389) (151,030) (273,835)
Net increase/(decrease) in net assets from Fund share
transactions:
Primary A Shares........................................... 703,512 2,990,554 1,735,106
Investor A Shares.......................................... 79,167 (549,512) (245,083)
Investor C Shares.......................................... 393 (60,440) (16,822)
Investor N Shares.......................................... (2,165,086) (43,053) (106,070)
------------ ------------ ------------
Net increase/(decrease) in net assets........................ (1,298,375) 2,400,917 1,492,353
NET ASSETS:
Beginning of period.......................................... 30,356,458 68,481,347 16,532,374
------------ ------------ ------------
End of period................................................ $ 29,058,083 $ 70,882,264 $ 18,024,727
============ ============ ============
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................. $ 16,686 $ 28 $ 2,070
============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 72
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
TENNESSEE NATIONS TEXAS NATIONS VIRGINIA NATIONS
INTERMEDIATE TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income ............... $ 415,197 $ 178,588 $ 735,401 $ 393,252 $ 5,449,517 $ 454,284
Net realized gain/(loss)
on investments ................... 2,848 (6,781) (28,640) (34,585) 153,466 (115,068)
Change in unrealized appreciation/
(depreciation) of investments .... (15,671) 39,039 54,298 139,880 (1,121,536) 269,163
----------- ---------- ----------- ----------- ------------- -----------
Net increase in net assets resulting
from operations .................. 402,374 210,846 761,059 498,547 4,481,447 608,379
Distributions to shareholders from
net investment income:
Primary A Shares ................. (189,837) (30,411) (654,050) (141,810) (3,597,058) (101,768)
Investor A Shares ............... (156,356) (23,073) (17,337) (8,515) (1,455,117) (16,897)
Investor C Shares ................ (47) (818) (11,621) (1,577) (147,156) (1,000)
Investor N Shares ................ (68,957) (124,286) (52,393) (241,350) (250,186) (334,618)
Net increase/(decrease) in net
assets from Fund share transactions:
Primary A Shares ................ 124,892 436,197 1,608,429 857,110 (10,049,114) 996,207
Investor A Shares ................ (564,413) 20,779 154,554 49,980 (7,278,195) 36,940
Investor C Shares ................ 47 818 11,621 1,577 (152,594) 1,000
Investor N Shares ................ (226,655) (941,622) (529,139) (900,435) (497,842) (848,084)
----------- ---------- ----------- ----------- ------------- -----------
Net increase/(decrease) in
net assets ...................... (678,952) (451,570) 1,271,123 113,527 (18,945,815) 340,159
NET ASSETS:
Beginning of period ................ 19,376,930 8,745,116 31,391,028 17,362,596 242,301,922 19,939,032
----------- ---------- ----------- ----------- ------------- -----------
End of period ...................... $18,697,978 $8,293,546 $32,662,151 $17,476,123 $223,356,107 $20,279,191
=========== ========== =========== =========== ============ ===========
Undistributed net investment income/
(distributions in excess of net
investment income) at end
of period ...................... $ (487) $ 5,215 $ (1,938) $ 8,575 $ 138,617 $ 3,603
=========== ========== =========== =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 73
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED MARCH 31, 1996(a)
<TABLE>
<CAPTION>
NATIONS
NATIONS NATIONS FLORIDA
SHORT-TERM INTERMEDIATE NATIONS INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
INCOME FUND BOND FUND INCOME FUND BOND FUND
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income............................. $ 965,658 $ 1,276,433 $ 1,998,797 $ 806,122
Net realized gain/(loss) on investments........... 23,232 62,751 239,877 158,265
Change in unrealized depreciation of
investments..................................... (389,551) (1,270,274) (2,859,978) (968,548)
----------- ----------- ------------ -----------
Net increase/(decrease) in net assets resulting
from operations................................. 599,339 68,910 (621,304) (4,161)
Distributions to shareholders from net investment
income:
Primary A Shares................................ (728,377) (1,225,918) (1,226,815) (706,751)
Investor A Shares............................... (53,577) (21,114) (466,482) (33,651)
Investor C Shares............................... (25,203) (8,469) (35,721) (3,856)
Investor N Shares............................... (158,501) (20,932) (269,779) (61,864)
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares................................ (1,188,013) 4,673,740 766,863 1,665,007
Investor A Shares............................... 882,954 273,860 (1,276,002) (227,704)
Investor C Shares............................... 128,549 368,003 (45,152) 2,593
Investor N Shares............................... 4,126,003 296,167 (908,664) (718,637)
----------- ----------- ------------ -----------
Net increase/(decrease) in net assets............. 3,583,174 4,404,247 (4,083,056) (89,024)
NET ASSETS:
Beginning of period............................... 65,458,345 76,857,153 117,232,325 51,381,914
----------- ----------- ------------ -----------
End of period..................................... $69,041,519 $81,261,400 $113,149,269 $51,292,890
=========== =========== ============ ===========
Undistributed net investment income/(distributions
in excess of net investment income) at end of
period.......................................... $ 947 $ 25,134 $ 28,068 $ (3,525)
=========== =========== ============ ===========
</TABLE>
- ---------------
(a) 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.
70
<PAGE> 74
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD ENDED MARCH 31, 1996 (a)
<TABLE>
<CAPTION>
NATIONS NATIONS
NATIONS GEORGIA NATIONS MARYLAND NATIONS MATOPMS
FLORIDA INTERMEDIATE GEORGIA INTERMEDIATE MARYLAND NORTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income ............... $ 595,972 $ 891,811 $ 215,557 $ 1,384,926 $ 190,487 $ 554,212
Net realized gain/(loss)
on investments ................... (25,347) 37,770 8,393 62,051 (14,816) 1,744
Change in unrealized
depreciation of investments ...... (1,140,671) (1,008,471) (366,730) (1,324,743) (323,905) (548,540
----------- ----------- ----------- ----------- ----------- ------------
Net increase/(decrease) in net assets
resulting from operations ........ (570,046) (78,890) (142,780) 122,234 (148,234) 7,416
Distributions to shareholders from
net investment income:
Primary A Shares ................. (208,210) (609,891) (35,925) (974,442) (43,249) (315,936)
Investor A Shares ................ (30,348) (133,317) (105) (309,446) (15,162) (113,170)
Investor C Shares ................ (703) (34,594) (1,019) (39,122) (33) (18,191)
Investor N Shares ................ (356,711) (113,838) (178,508) (61,916) (132,043) (106,915)
Net increase/(decrease) in net
assets from Fund share transactions:
Primary A Shares ................ 2,209,957 (1,515,078) (513,607) (246,692) 262,294 546,867
Investor A Shares ................ 104,876 (404,070) 459 (1,469,154) 78,396 (745,999
Investor C Shares ................ (191) (120,198) 1,029 132,701 43 31,509
Investor N Shares ............... (726,692) 74,608 (453,351) 77,898 (94,912) 372,628
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in
net assets ...................... 421,932 (2,935,268) (1,323,807) (2,767,939) (92,900) (341,791)
NET ASSETS:
Beginning of period ................ 38,443,045 60,324,938 15,721,016 90,961,079 13,630,486 38,655,204
----------- ----------- ----------- ----------- ----------- ------------
End of period ...................... $38,864,977 $57,389,670 $14,397,209 $88,193,140 $13,537,586 $ 38,313,413
=========== =========== =========== =========== =========== ============
Undistributed net investment income/
(distributions in excess of net
investment income) at end
of period ........................ $ 11,038 $ (4,379) $ 431 $ 28,863 $ 2,074 $ 4,391
=========== =========== =========== =========== =========== ============
</TABLE>
- -------------
(a) 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.
71
<PAGE> 75
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD ENDED MARCH 31, 1996(a)
<TABLE>
<CAPTION>
NATIONS
NATIONS SOUTH CAROLINA NATIONS
NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
-------------------------------------------------
<S> <C> <C> <C>
Net investment income........................................ $ 436,514 $ 1,101,730 $ 237,902
Net realized gain/(loss) on investments...................... (151,023) 20,415 40,598
Change in unrealized depreciation of investments............. (602,825) (1,125,003) (403,299)
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from
operations................................................. (317,334) (2,858) (124,799)
Distributions to shareholders from net investment income:
Primary A Shares........................................... (23,655) (700,580) (31,705)
Investor A Shares.......................................... (6,075) (224,472) (19,636)
Investor C Shares.......................................... (53) (79,341) (5,994)
Investor N Shares.......................................... (406,731) (97,337) (180,567)
Net increase/(decrease) in net assets from Fund share
transactions:
Primary A Shares........................................... 343,908 (2,769,895) 320,258
Investor A Shares.......................................... 111,833 67,455 7,700
Investor C Shares.......................................... 15,063 (29,949) 248,504
Investor N Shares.......................................... (1,051,328) 626,082 608,489
----------- ----------- -----------
Net increase/(decrease) in net assets........................ (1,334,372) (3,210,895) 822,250
NET ASSETS:
Beginning of period.......................................... 31,690,830 71,692,242 15,710,124
----------- ----------- -----------
End of period................................................ $30,356,458 $68,481,347 $16,532,374
=========== =========== ===========
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................. $ 16,687 $ 28 $ 2,070
=========== =========== ===========
</TABLE>
- ---------------
(a) 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.
72
<PAGE> 76
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD ENDED MARCH 31, 1996 (a)
<TABLE>
<CAPTION>
NATIONS NATIONS
TENNESSEE NATIONS TEXAS
INTERMEDIATE TENNESSEE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
---------------------------------------------
<S> <C> <C> <C>
Net investment income........................................ $ 272,926 $ 110,961 $ 464,718
Net realized gain/(loss) on investments...................... (4,989) 14,032 58,375
Change in unrealized depreciation of investments............. (264,536) (176,556) (539,809)
----------- ---------- -----------
Net increase/(decrease) in net assets resulting from
operations................................................. 3,401 (51,563) (16,716)
Distributions to shareholders from net investment income:
Primary A Shares........................................... (117,326) (14,096) (405,685)
Investor A Shares.......................................... (108,339) (3,339) (11,662)
Investor C Shares.......................................... (31) (805) (7,683)
Investor N Shares.......................................... (47,230) (92,721) (39,688)
Net increase/(decrease) in net assets from Fund share
transactions:
Primary A Shares........................................... 1,360,337 227,528 1,212,980
Investor A Shares.......................................... (27,813) 773,762 6,664
Investor C Shares.......................................... 42 (27,005) 7,694
Investor N Shares.......................................... 6,261 279,296 (249,395)
----------- ---------- -----------
Net increase/(decrease) in net assets........................ 1,069,302 1,091,057 496,509
NET ASSETS:
Beginning of period.......................................... 18,307,628 7,654,059 30,894,519
----------- ---------- -----------
End of period................................................ $19,376,930 $8,745,116 $31,391,028
=========== ========== ===========
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................. $ (487) $ 5,215 $ (1,938)
=========== ========== ===========
</TABLE>
- ------------
(a) 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.
<TABLE>
<CAPTION>
NATIONS
NATIONS VIRGINIA NATIONS
TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND
----------------------------------------------
<S> <C> <C> <C>
Net investment income........................................ $ 256,506 $ 3,802,583 $ 303,010
Net realized gain/(loss) on investments...................... 8,093 397,976 1,713
Change in unrealized depreciation of investments............. (405,009) (3,555,469) (513,081)
----------- ------------- -----------
Net increase/(decrease) in net assets resulting from
operations................................................. (140,410) 645,090 (208,358)
Distributions to shareholders from net investment income:
Primary A Shares........................................... (78,433) (2,458,927) (56,336)
Investor A Shares.......................................... (5,320) (1,074,449) (10,695)
Investor C Shares.......................................... (1,024) (99,325) (650)
Investor N Shares.......................................... (171,729) (169,882) (235,329)
Net increase/(decrease) in net assets from Fund share
transactions:
Primary A Shares........................................... 642,899 233,297 (147,993)
Investor A Shares.......................................... (27,628) (4,360,161) 28,565
Investor C Shares.......................................... 1,034 (152,553) 10,660
Investor N Shares.......................................... (478,509) (80,935) (139,814)
----------- ------------- -----------
Net increase/(decrease) in net assets........................ (259,120) (7,517,845) (759,950)
NET ASSETS:
Beginning of period.......................................... 17,621,716 249,819,767 20,698,982
----------- ------------- -----------
End of period................................................ $17,362,596 $242,301,922 $19,939,032
=========== ============ ===========
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................. $ 8,575 $ 138,617 $ 3,602
=========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE> 77
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INCOME FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 2,164,862 $ 21,532,946 1,045,433 $ 10,507,361
Issued as reinvestment of dividends.............................. 787 7,838 311 3,111
Redeemed......................................................... (1,447,245) (14,403,293) (1,166,784) (11,698,485)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 718,404 $ 7,137,491 (121,040) $ (1,188,013)
========== ============ ========== ============
INVESTOR A SHARES:
Sold............................................................. 403,168 $ 4,008,441 150,130 $ 1,510,243
Issued as reinvestment of dividends.............................. 11,702 116,460 5,120 51,349
Redeemed......................................................... (432,525) (4,303,432) (67,467) (678,638)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (17,655) $ (178,531) 87,783 $ 882,954
========== ============ ========== ============
INVESTOR C SHARES:
Sold............................................................. 12,048 $ 119,666 49,801 $ 500,000
Issued as reinvestment of dividends.............................. 3,748 37,308 2,334 23,417
Redeemed......................................................... (103,807) (1,032,729) (39,268) (394,868)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (88,011) $ (875,755) 12,867 $ 128,549
========== ============ ========== ============
INVESTOR N SHARES:
Sold............................................................. 98,545 $ 980,814 504,230 $ 5,060,605
Issued as reinvestment of dividends.............................. 20,239 201,448 14,522 145,675
Redeemed......................................................... (585,010) (5,812,757) (107,658) (1,080,277)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (466,226) $ (4,630,495) 411,094 $ 4,126,003
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 657,263 $ 6,822,187 426,934 $ 4,545,038
Issued in exchange for Shares of Peachtree Georgia Tax-Free
Income Fund (Note 9)........................................... -- -- -- --
Issued as reinvestment of dividends.............................. 4,550 47,301 2,154 22,952
Redeemed......................................................... (668,258) (6,941,050) (272,693) (2,902,983)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (6,445) $ (71,562) 156,395 $ 1,665,007
========== ============ ========== ============
INVESTOR A SHARES:
Sold............................................................. 142,226 $ 1,477,973 1,725 $ 17,997
Issued as reinvestment of dividends.............................. 2,246 23,342 2,126 22,620
Redeemed......................................................... (62,115) (643,331) (25,633) (268,321)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 82,357 $ 857,984 (21,782) $ (227,704)
========== ============ ========== ============
INVESTOR C SHARES:
Sold............................................................. -- $ -- -- $ --
Issued as reinvestment of dividends.............................. 224 2,334 246 2,618
Redeemed......................................................... (15,010) (155,802) (2) (25)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (14,786) $ (153,468) 244 $ 2,593
========== ============ ========== ============
INVESTOR N SHARES:
Sold............................................................. 11,601 $ 120,997 11,873 $ 126,629
Issued as reinvestment of dividends.............................. 4,908 51,048 3,173 33,729
Redeemed......................................................... (11,869) (123,095) (81,900) (878,995)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 4,640 $ 48,950 (66,854) $ (718,637)
========== ============ ========== ============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE> 78
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
------------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 1,889,092 $18,818,141 960,264 $ 9,779,988
Issued as reinvestment of dividends.............................. 3,517 35,110 2,204 22,398
Redeemed......................................................... (882,028) (8,802,835) (505,355) (5,128,646)
--------- ----------- ---------- -----------
Net increase/(decrease).......................................... 1,010,581 $10,050,416 457,113 $ 4,673,740
========= =========== ========== ===========
INVESTOR A SHARES:
Sold............................................................. 95,978 $ 956,849 26,432 $ 269,682
Issued as reinvestment of dividends.............................. 3,020 30,149 1,197 12,184
Redeemed......................................................... (95,355) (946,608) (785) (8,006)
--------- ----------- ---------- -----------
Net increase/(decrease).......................................... 3,643 $ 40,390 26,844 $ 273,860
========= =========== ========== ===========
INVESTOR C SHARES:
Sold............................................................. 23,231 $ 232,324 35,258 $ 359,738
Issued as reinvestment of dividends.............................. 1,218 11,693 834 8,469
Redeemed......................................................... (2,080) (22,001) (20) (204)
--------- ----------- ---------- -----------
Net increase/(decrease).......................................... 22,369 $ 222,016 36,072 $ 368,003
========= =========== ========== ===========
INVESTOR N SHARES:
Sold............................................................. 3,067 $ 30,598 27,929 $ 285,500
Issued as reinvestment of dividends.............................. 1,993 19,906 1,050 10,667
Redeemed......................................................... (19,305) (192,532) -- --
--------- ----------- ---------- -----------
Net increase/(decrease).......................................... (14,245) $ (142,028) 28,979 $ 296,167
========= =========== ========== ===========
<CAPTION>
MUNICIPAL INCOME FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ----------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 972,616 $ 10,484,623 451,180 $ 5,003,601
Issued as reinvestment of dividends.............................. 5,000 54,101 3,723 41,168
Redeemed......................................................... (1,087,979) (11,742,658) (387,428) (4,277,906)
---------- ------------ --------- -----------
Net increase/(decrease).......................................... (110,363) $ (1,203,934) 67,475 $ 766,863
========== ============ ========= ==========
INVESTOR A SHARES:
Sold............................................................. 733,672 $ 7,922,467 80,739 $ 881,611
Issued as reinvestment of dividends.............................. 26,023 281,468 21,450 237,117
Redeemed......................................................... (1,767,003) (19,070,924) (217,618) (2,394,730)
---------- ------------ --------- ------------
Net increase/(decrease).......................................... (1,007,308) $(10,866,989) (115,429) $(1,276,002)
========== ============ ========= ===========
INVESTOR C SHARES:
Sold............................................................. -- $ -- 450 $ 5,000
Issued as reinvestment of dividends.............................. 2,726 29,505 2,129 23,528
Redeemed......................................................... (28,853) (311,257) (6,660) (73,680)
---------- ------------ ---------- -----------
Net increase/(decrease).......................................... (26,127) $ (281,752) (4,081) $ (45,152)
========== ============ ========= ===========
INVESTOR N SHARES:
Sold............................................................. 36,076 $ 387,469 20,506 $ 227,021
Issued as reinvestment of dividends.............................. 18,269 197,684 12,403 137,123
Redeemed......................................................... (120,402) (1,299,650) (114,832) (1,272,808)
---------- ------------ --------- ------------
Net increase/(decrease).......................................... (66,057) $ (714,497) (81,923) $ (908,664)
========== ============ ========== ===========
</TABLE>
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 268,524 $ 2,528,091 250,387 $ 2,439,111
Issued in exchange for Shares of Peachtree Georgia Tax-Free
Income Fund (Note 9)........................................... -- -- -- --
Issued as reinvestment of dividends.............................. 163 1,543 45 437
Redeemed......................................................... (231,046) (2,171,503) (23,390) (229,591)
-------- ----------- --------- -----------
Net increase/(decrease).......................................... 37,641 $ 358,131 227,042 $ 2,209,957
======== =========== ========= ===========
INVESTOR A SHARES:
Sold............................................................. 158,253 $ 1,494,363 12,823 $ 125,245
Issued as reinvestment of dividends.............................. 678 6,411 483 4,698
Redeemed......................................................... (132,994) (1,263,048) (2,646) (25,067)
-------- ----------- --------- -----------
Net increase/(decrease).......................................... 25,937 $ 237,726 10,660 $ 104,876
======== =========== ========= ===========
INVESTOR C SHARES:
Sold............................................................. -- $ -- 15,448 $ 151,548
Issued as reinvestment of dividends.............................. 93 881 59 572
Redeemed......................................................... -- -- (15,447) (152,311)
-------- ----------- --------- -----------
Net increase/(decrease).......................................... 93 $ 881 60 $ (191)
======== =========== ========= ===========
INVESTOR N SHARES:
Sold............................................................. 24,897 $ 235,389 28,067 $ 275,586
Issued as reinvestment of dividends.............................. 24,198 228,567 17,719 171,975
Redeemed......................................................... (273,613) (2,578,220) (120,970) (1,174,253)
-------- ----------- ---------- -----------
Net increase/(decrease).......................................... (224,518) $(2,114,264) (75,184) $ (726,692)
======== =========== ========= ===========
<CAPTION>
GEORGIA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 372,508 $ 3,902,917 215,451 $ 2,333,137
Issued in exchange for Shares of Peachtree Georgia Tax-Free
Income Fund (Note 9)........................................... 120,237 1,278,074 -- --
Issued as reinvestment of dividends.............................. 355 3,757 321 3,474
Redeemed......................................................... (432,249) (4,555,173) (356,183) (3,851,689)
-------- ----------- ----------- ------------
Net increase/(decrease).......................................... 60,851 $ 629,575 (140,411) $ (1,515,078)
======== =========== ========== ============
INVESTOR A SHARES:
Sold............................................................. 27,417 290,489 2,786 29,915
Issued as reinvestment of dividends.............................. 14,311 151,494 9,658 104,404
Redeemed......................................................... (36,490) (385,243) (49,860) (538,389)
-------- ----------- ----------- ------------
Net increase/(decrease).......................................... 5,238 $ 56,740 (37,416) $ (404,070)
======== =========== ========== ============
INVESTOR C SHARES:
Sold............................................................. 58 $ 600 4,482 $ 47,791
Issued as reinvestment of dividends.............................. 3,279 34,718 1,989 21,495
Redeemed......................................................... (6,357) (67,341) (17,569) (189,484)
-------- ----------- ----------- ------------
Net increase/(decrease).......................................... (3,020) $ (32,023) (11,098) $ (120,198)
======== =========== ========== ============
INVESTOR N SHARES:
Sold............................................................. 12,296 $ 130,457 27,010 $ 293,325
Issued as reinvestment of dividends.............................. 7,135 75,518 4,577 49,457
Redeemed......................................................... (51,257) (545,862) (24,720) (268,174)
-------- ----------- ----------- ------------
Net increase/(decrease).......................................... (31,826) $ (339,887) 6,867 $ 74,608
======== =========== ========== ============
</TABLE>
- --------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE> 79
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
------------------------ ---------------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold................................................................ 165,172 $ 1,553,028 78,810 $ 762,805
Issued as reinvestment of dividends................................. 22 211 16 162
Redeemed............................................................ (65,756) (622,380) (131,078) (1,276,574)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. 99,438 $ 930,859 (52,252) $ (513,607)
======== =========== ========== ===========
INVESTOR A SHARES:
Sold................................................................ 15,275 $ 144,111 92 $ 887
Issued as reinvestment of dividends................................. 229 2,171 11 105
Redeemed............................................................ (173) (1,623) (55) (533)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 15,331 $ 144,659 48 $ 459
======== =========== ========== ============
INVESTOR C SHARES:
Sold................................................................ -- $ -- 1 $ 10
Issued as reinvestment of dividends................................. 164 1,550 105 1,019
Redeemed............................................................ -- -- -- --
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 164 $ 1,550 106 $ 1,029
======== =========== ========== ============
INVESTOR N SHARES:
Sold................................................................ 3,581 $ 33,535 8,854 $ 86,386
Issued as reinvestment of dividends................................. 15,025 141,871 10,743 104,168
Redeemed............................................................ (114,932) (1,081,123) (66,400) (643,905)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (96,326) $ (905,717) (46,803) $ (453,351)
======== =========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
------------------------ ---------------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold................................................................ 602,425 $ 6,197,185 171,702 $ 1,809,636
Issued as reinvestment of dividends................................. 527 5,442 231 3,227
Redeemed............................................................ (293,665) (3,031,247) (120,210) (1,265,996)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 309,287 $ 3,171,380 51,723 $ 546,867
======== =========== ========== ============
INVESTOR A SHARES:
Sold................................................................ 45,526 $ 470,101 22,853 $ 240,377
Issued as reinvestment of dividends................................. 8,174 84,521 6,393 67,230
Redeemed............................................................ (248,878) (2,599,212) (100,126) (1,053,606)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (195,178) $(2,044,590) (70,880) $ (745,999)
======== =========== ========== ============
INVESTOR C SHARES:
Sold................................................................ 415 $ 4,267 1,449 $ 15,000
Issued as reinvestment of dividends................................. 2,061 21,309 1,569 16,509
Redeemed............................................................ -- -- -- --
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 2,476 $ 25,576 3,018 $ 31,509
======== =========== ========== ============
INVESTOR N SHARES:
Sold................................................................ 33,736 $ 347,783 51,146 $ 538,130
Issued as reinvestment of dividends................................. 11,773 121,604 8,114 85,324
Redeemed............................................................ (132,859) (1,363,958) (24,143) (250,826)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (87,350) $ (894,571) 35,117 $ 372,628
======== =========== ========== ============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE> 80
NATIONS FUND
- -------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
------------------------ --------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold................................................................ 723,486 $ 7,753,781 505,608 $ 5,538,107
Issued as reinvestment of dividends................................. 2,582 27,708 2,165 23,655
Redeemed............................................................ (845,407) (9,065,999) (532,835) (5,808,454)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. (119,339) $(1,284,510) (25,062) $ (246,692)
======== =========== ========== ===========
INVESTOR A SHARES:
Sold................................................................ 148,377 $ 1,593,424 28,679 $ 313,851
Issued as reinvestment of dividends................................. 29,779 319,438 22,246 243,587
Redeemed............................................................ (417,431) (4,465,809) (186,416) (2,026,592)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. (239,275) $(2,552,947) (135,491) $ (1,469,154)
======== =========== ========== ===========
INVESTOR C SHARES:
Sold................................................................ 2,191 $ 23,620 18,277 $ 201,549
Issued as reinvestment of dividends................................. 4,390 47,080 2,956 32,361
Redeemed............................................................ (35,783) (383,699) (9,204) (101,209)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. (29,202) $ (312,999) 12,029 $ 132,701
======== =========== ========== ===========
INVESTOR N SHARES:
Sold................................................................ 6,505 $ 70,170 6,644 $ 73,296
Issued as reinvestment of dividends................................. 6,844 73,409 4,513 49,421
Redeemed............................................................ (22,450) (241,223) (4,071) (44,819)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. (9,101) $ (97,644) 7,086 $ 77,898
======== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
MARYLAND MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold................................................................ 98,056 $ 911,999 34,297 330,542
Issued as reinvestment of dividends................................. 393 3,681 183 1,752
Redeemed............................................................ (8,449) (78,841) (7,194) (70,000)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 90,000 $ 836,839 27,286 $ 262,294
======== =========== ========== ============
INVESTOR A SHARES:
Sold................................................................ 42,442 $ 396,686 11,875 $ 110,562
Issued as reinvestment of dividends................................. 3,019 28,249 921 8,809
Redeemed............................................................ (155) (1,432) (4,259) (40,975)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 45,306 $ 423,503 8,537 $ 78,396
======== =========== ========== ============
INVESTOR C SHARES:
Sold................................................................ -- $ -- 1 $ 10
Issued as reinvestment of dividends................................. 6 53 3 33
Redeemed............................................................ -- -- -- --
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 6 $ 53 4 $ 43
======== =========== ========== ============
INVESTOR N SHARES:
Sold................................................................ 13,363 $ 125,096 1,131 $ 12,326
Issued as reinvestment of dividends................................. 14,883 139,193 10,220 98,130
Redeemed............................................................ (127,915) (1,188,790) (21,471) (205,368)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (99,669) $ (924,501) (10,120) $ (94,912)
======== =========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold................................................................ 124,109 $ 1,171,160 38,727 $ 382,413
Issued as reinvestment of dividends................................. 216 2,033 138 1,007
Redeemed............................................................ (49,815) (469,681) (4,065) (39,512)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. 74,510 $ 703,512 34,800 $ 343,908
======== =========== ========== ===========
INVESTOR A SHARES:
Sold................................................................ 18,128 $ 171,385 11,184 $ 108,756
Issued as reinvestment of dividends................................. 970 9,153 463 4,492
Redeemed............................................................ (10,756) (101,371) (144) (1,415)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. 8,342 $ 79,167 11,503 $ 111,833
======== =========== ========== ===========
INVESTOR C SHARES:
Sold................................................................ -- $ -- 1,583 $ 15,010
Issued as reinvestment of dividends................................. 41 393 6 53
Redeemed............................................................ -- -- -- --
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. 41 $ 393 1,589 $ 15,063
======== =========== ========== ===========
INVESTOR N SHARES:
Sold................................................................ 14,536 $ 137,760 56,074 $ 548,267
Issued as reinvestment of dividends................................. 43,071 406,340 29,621 288,155
Redeemed............................................................ (287,491) (2,709,186) (193,797) (1,887,750)
-------- ----------- ---------- -----------
Net increase/(decrease)............................................. (229,884) $(2,165,086) (108,102) $ (1,051,328)
======== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold................................................................ 702,617 $ 7,346,867 269,174 $ 2,874,114
Issued as reinvestment of dividends................................. 4,899 51,294 2,578 27,499
Redeemed............................................................ (420,985) (4,407,607) (529,107) (5,671,508)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. 286,531 $ 2,990,554 (257,355) $ (2,769,895)
======== =========== ========== ============
INVESTOR A SHARES:
Sold................................................................ 6,749 $ 70,929 88,345 $ 946,537
Issued as reinvestment of dividends................................. 14,611 152,971 9,588 102,383
Redeemed............................................................ (73,966) (773,412) (91,422) (981,465)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (52,606) $ (549,512) 6,511 $ 67,455
======== =========== ========== ============
INVESTOR C SHARES:
Sold................................................................ 55,949 $ 582,293 1,514 $ 15,931
Issued as reinvestment of dividends................................. 7,166 75,019 5,085 54,300
Redeemed............................................................ (68,576) (717,752) (9,387) (100,180)
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (5,461) $ (60,440) (2,788) $ (29,949)
======== =========== ========== ============
INVESTOR N SHARES:
Sold................................................................ 28,388 $ 297,044 68,683 $ 735,005
Issued as reinvestment of dividends................................. 8,961 93,816 5,411 57,762
Redeemed............................................................ (41,526) (433,913) (15,644) (166,685
-------- ----------- ---------- ------------
Net increase/(decrease)............................................. (4,177) $ (43,053) 58,450 $ 626,082
======== =========== ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE> 81
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA MUNICIPAL BOND FUND
SIX MONTHS ENDED SEPTEMBER PERIOD ENDED
30, 1996(b) MARCH 31, 1996(a)
-------------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................... 206,132 $ 2,001,760 43,732 $ 435,010
Issued as reinvestment of dividends................................ -- -- -- --
Redeemed........................................................... (27,308) (266,654) (11,402) (114,752)
-------- ----------- -------- ---------
Net increase....................................................... 178,824 $ 1,735,106 32,330 $ 320,258
======== =========== ======== =========
INVESTOR A SHARES:
Sold............................................................... 5,825 $ 57,141 1,718 $ 17,256
Issued as reinvestment of dividends................................ 2,502 24,364 1,783 17,812
Redeemed........................................................... (33,594) (326,588) (2,710) (27,368)
-------- ----------- -------- ---------
Net increase/(decrease)............................................ (25,267) $ (245,083) 791 $ 7,700
======== =========== ======== =========
INVESTOR C SHARES:
Sold............................................................... -- $ -- 54,672 $ 550,000
Issued as reinvestment of dividends................................ 13 124 29 288
Redeemed........................................................... (1,739) (16,946) (29,674) (301,784)
-------- ----------- -------- ---------
Net increase/(decrease)............................................ (1,726) $ (16,822) 25,027 $ 248,504
======== =========== ======== =========
INVESTOR N SHARES:
Sold............................................................... 79,003 $ 777,971 80,526 $ 800,208
Issued as reinvestment of dividends................................ 16,465 160,423 11,265 112,544
Redeemed........................................................... (107,003) (1,044,464) (30,449) (304,263)
-------- ----------- -------- ---------
Net increase/(decrease)............................................ (11,535) $ (106,070) 61,342 $ 608,489
======== =========== ======== =========
<CAPTION>
TEXAS INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
-------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold.............................................................. 452,819 $ 4,580,869 202,753 $2,114,082
Issued as reinvestment of dividends............................... -- -- -- --
Redeemed.......................................................... (292,801) (2,972,440) (87,027) (901,102)
-------- ----------- -------- ----------
Net increase/(decrease)........................................... 160,018 $ 1,608,429 115,726 $1,212,980
======== =========== ======== ==========
INVESTOR A SHARES:
Sold.............................................................. 19,561 $ 198,764 129 $ 1,342
Issued as reinvestment of dividends............................... 1,143 11,614 623 6,452
Redeemed.......................................................... (5,511) (55,824) (109) (1,130)
-------- ----------- -------- ----------
Net increase/(decrease)........................................... 15,193 $ 154,554 643 $ 6,664
======== =========== ======== ==========
INVESTOR C SHARES:
Sold.............................................................. -- $ -- 1 $ 11
Issued as reinvestment of dividends............................... 1,144 11,621 742 7,683
Redeemed.......................................................... -- -- -- --
-------- ----------- -------- ----------
Net increase/(decrease)........................................... 1,144 $ 11,621 743 $ 7,694
======== =========== ======== ==========
INVESTOR N SHARES:
Sold.............................................................. 843 $ 8,608 1,040 $ 10,800
Issued as reinvestment of dividends............................... 3,205 32,558 2,383 24,698
Redeemed.......................................................... (56,328) (570,305) (27,471) (284,893)
-------- ----------- -------- ----------
Net decrease...................................................... (52,280) $ (529,139) (24,048) $ (249,395)
======== =========== ======== ==========
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE> 82
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
------------------------ ------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................... 204,044 $ 2,051,342 157,752 $1,607,430
Issued as reinvestment of dividends................................ 1,071 10,733 2,109 21,573
Redeemed........................................................... (194,184) (1,937,183) (26,193) (268,666)
-------- ----------- ------- ----------
Net increase....................................................... 10,931 $ 124,892 133,668 $1,360,337
======== =========== ======= ==========
INVESTOR A SHARES:
Sold............................................................... 5,268 $ 52,878 52 $ 542
Issued as reinvestment of dividends................................ 12,487 125,484 8,442 86,375
Redeemed........................................................... (73,833) (742,775) (11,200) (114,730)
-------- ----------- ------- ----------
Net increase/(decrease)............................................ (56,078) $ (564,413) (2,706) $ (27,813)
======== =========== ======= ==========
INVESTOR C SHARES:
Sold............................................................... -- $ -- 1 $ 11
Issued as reinvestment of dividends................................ 5 47 3 31
Redeemed........................................................... -- -- -- --
-------- ----------- ------- ----------
Net increase/(decrease)............................................ 5 $ 47 4 $ 42
======== =========== ======= ==========
INVESTOR N SHARES:
Sold............................................................... 7,062 $ 70,919 12,206 $ 125,200
Issued as reinvestment of dividends................................ 5,371 53,968 3,623 37,065
Redeemed........................................................... (34,963) (351,542) (15,289) (156,004)
-------- ----------- ------- ----------
Net increase/(decrease)............................................ (22,530) $ (226,655) 540 $ 6,261
======== =========== ======= ==========
<CAPTION>
TENNESSEE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................... 48,664 $ 468,344 23,133 $ 230,008
Issued as reinvestment of dividends................................ 1 9 2 20
Redeemed........................................................... (3,365) (32,156) (253) (2,500)
---------- ------------ -------- -----------
Net increase....................................................... 45,300 $ 436,197 22,882 $ 227,528
========== ============ ======== ===========
INVESTOR A SHARES:
Sold............................................................... 89 $ 852 80,756 $ 782,383
Issued as reinvestment of dividends................................ 2,217 21,364 268 2,607
Redeemed........................................................... (150) (1,437) (1,129) (11,228)
---------- ------------ -------- -----------
Net increase/(decrease)............................................ 2,156 $ 20,779 79,895 $ 773,762
========== ============ ======== ===========
INVESTOR C SHARES:
Sold............................................................... -- $ -- 28 $ 275
Issued as reinvestment of dividends................................ 85 818 48 475
Redeemed........................................................... -- -- (2,759) (27,755)
---------- ------------ -------- -----------
Net increase/(decrease)............................................ 85 $ 818 (2,683) $ (27,005)
========== ============ ======== ===========
INVESTOR N SHARES:
Sold............................................................... 1,582 $ 15,000 69,966 $ 699,596
Issued as reinvestment of dividends................................ 9,380 90,348 6,689 66,084
Redeemed........................................................... (108,572) (1,046,970) (49,231) (486,384)
---------- ------------ -------- -----------
Net increase/(decrease)............................................ (97,610) $ (941,622) 27,424 $ 279,296
========== ============ ======== ===========
<CAPTION>
TEXAS MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
------------------------ ------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold.............................................................. 139,528 $ 1,305,324 76,130 $ 739,643
Issued as reinvestment of dividends............................... 1 10 2 20
Redeemed.......................................................... (47,371) (448,224) (9,963) (96,764)
-------- ----------- ------- ----------
Net increase/(decrease)........................................... 92,158 $ 857,110 66,169 $ 642,899
======== =========== ======= ==========
INVESTOR A SHARES:
Sold.............................................................. 6,501 $ 60,483 330 $ 3,168
Issued as reinvestment of dividends............................... 283 2,671 114 1,121
Redeemed.......................................................... (1,405) (13,174) (3,263) (31,917)
-------- ----------- ------- ----------
Net increase/(decrease)........................................... 5,379 $ 49,980 (2,819) $ (27,628)
======== =========== ======= ==========
INVESTOR C SHARES:
Sold.............................................................. -- $ -- 1 $ 10
Issued as reinvestment of dividends............................... 167 1,577 106 1,024
Redeemed.......................................................... -- -- -- --
-------- ----------- ------- ----------
Net increase/(decrease)........................................... 167 $ 1,577 107 $ 1,034
======== =========== ======= ==========
INVESTOR N SHARES:
Sold.............................................................. 3,583 $ 33,907 7,649 $ 74,600
Issued as reinvestment of dividends............................... 15,766 148,962 11,199 108,407
Redeemed.......................................................... (114,847) (1,083,304) (68,456) (661,516)
-------- ----------- ------- ----------
Net decrease...................................................... (95,498) $ (900,435) (49,608) $ (478,509)
======== =========== ======= ==========
<CAPTION>
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
--------------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold.............................................................. 1,238,528 $ 13,165,426 732,138 $ 7,945,587
Issued as reinvestment of dividends............................... 2,539 26,994 2,904 31,517
Redeemed.......................................................... (2,186,481) (23,241,534) (712,840) (7,743,807)
---------- ------------ -------- -----------
Net increase/(decrease)........................................... (945,414) $(10,049,114) 22,202 $ 233,297
========== ============ ======== ===========
INVESTOR A SHARES:
Sold.............................................................. 109,518 $ 1,164,435 98,354 $ 1,066,154
Issued as reinvestment of dividends............................... 98,079 1,042,539 72,511 786,569
Redeemed.......................................................... (892,829) (9,485,169) (573,486) (6,212,884)
---------- ------------ -------- -----------
Net increase/(decrease)........................................... (685,232) $ (7,278,195) (402,621) $(4,360,161)
========== ============ ======== ===========
INVESTOR C SHARES:
Sold.............................................................. 7,435 $ 79,366 1,351 $ 14,653
Issued as reinvestment of dividends............................... 9,095 96,666 6,100 66,176
Redeemed.......................................................... (30,865) (328,626) (21,503) (233,382)
---------- ------------ -------- -----------
Net increase/(decrease)........................................... (14,335) $ (152,594) (14,052) $ (152,553)
========== ============ ======== ===========
INVESTOR N SHARES:
Sold.............................................................. 6,661 $ 70,603 4,369 $ 47,365
Issued as reinvestment of dividends............................... 15,631 166,153 10,584 114,804
Redeemed.......................................................... (69,094) (734,598) (22,397) (243,104)
---------- ------------ -------- -----------
Net decrease...................................................... (46,802) $ (497,842) (7,444) $ (80,935)
========== ============ ======== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE> 83
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND FUND
SIX MONTHS ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) MARCH 31, 1996(a)
-------------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................... 261,675 $ 2,433,534 61,232 $ 590,875
Redeemed........................................................... (154,265) (1,437,327) (76,321) (738,868)
-------- ----------- ------- ---------
Net increase/(decrease)............................................ 107,410 $ 996,207 (15,089) $ (147,993)
======== =========== ======= =========
INVESTOR A SHARES:
Sold............................................................... 6,023 $ 55,760 2,097 $ 20,432
Issued as reinvestment of dividends................................ 1,366 12,774 880 8,443
Redeemed........................................................... (3,369) (31,594) (31) (310)
-------- ----------- ------- ---------
Net increase....................................................... 4,020 $ 36,940 2,946 $ 28,565
======== =========== ======= =========
INVESTOR C SHARES:
Sold............................................................... -- $ -- 1,038 $ 10,010
Issued as reinvestment of dividends................................ 107 1,000 68 650
-------- ----------- ------- ---------
Net increase....................................................... 107 $ 1,000 1,106 $ 10,660
======== =========== ======= =========
INVESTOR N SHARES:
Sold............................................................... 7,644 $ 71,134 27,104 $ 259,471
Issued as reinvestment of dividends................................ 22,340 208,805 15,468 148,440
Redeemed........................................................... (121,310) (1,128,023) (56,955) (547,725)
-------- ----------- ------- ---------
Net decrease....................................................... (91,326) $ (848,084) (14,383) $ (139,814)
======== =========== ======= =========
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE> 84
[THIS PAGE INTENTIONALLY LEFT BLANK]
81
<PAGE> 85
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.98 $ 0.22 $(0.01) $ 0.21 $(0.22) -- --
Period ended
03/31/1996(b).......... 10.03 0.15 (0.05) 0.10 (0.15) -- --
Year ended 11/30/1995.... 9.69 0.44 0.34 0.78 (0.44) -- --
Year ended 11/30/1994.... 9.96 0.38 (0.27) 0.11 (0.38) -- $ (0.00)#
Period ended
11/30/1993*............ 10.00 0.05 (0.04) 0.01 (0.05) -- --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.98 $ 0.21 $(0.01) $ 0.20 $(0.21) -- --
Period ended
03/31/1996(b).......... 10.03 0.14 (0.05) 0.09 (0.14) -- --
Year ended 11/30/1995.... 9.69 0.42 0.34 0.76 (0.42) -- --
Year ended 11/30/1994.... 9.96 0.36 (0.27) 0.09 (0.36) -- $ (0.00)#
Period ended
11/30/1993*............ 9.98 0.03 (0.02) 0.01 (0.03) -- --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.98 $ 0.20 $(0.01) $ 0.19 $(0.20) -- --
Period ended
03/31/1996(b).......... 10.03 0.14 (0.05) 0.09 (0.14) -- --
Year ended 11/30/1995.... 9.69 0.42 0.34 0.76 (0.42) -- --
Period ended
11/30/1994*............ 9.84 0.19 (0.15) 0.04 (0.19) -- $ (0.00)#
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.98 $ 0.20 $(0.01) $ 0.19 $(0.20) -- --
Period ended
03/31/1996(b).......... 10.03 0.13 (0.05) 0.08 (0.13) -- --
Year ended 11/30/1995.... 9.69 0.40 0.34 0.74 (0.40) -- --
Year ended 11/30/1994.... 9.96 0.34 (0.27) 0.07 (0.34) -- $ (0.00)#
Period ended
11/30/1993*............ 10.00 0.04 (0.04) 0.00 (0.04) -- --
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.03 $ 0.24 $ 0.01 $ 0.25 $(0.24) -- --
Period ended
03/31/1996(b).......... 10.17 0.16 (0.14) 0.02 (0.16) -- --
Year ended 11/30/1995.... 9.24 0.48 0.93 1.41 (0.48) -- --
Year ended 11/30/1994.... 10.11 0.45 (0.86) (0.41) (0.45) $(0.00)# $ (0.01)
Period ended
11/30/1993**........... 10.00 0.14 0.11 0.25 (0.14) -- --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.03 $ 0.23 $ 0.01 $ 0.24 $(0.23) -- --
Period ended
03/31/1996(b).......... 10.17 0.15 (0.14) 0.01 (0.15) -- --
Year ended 11/30/1995.... 9.24 0.47 0.93 1.40 (0.47) -- --
Year ended 11/30/1994.... 10.11 0.42 (0.86) (0.44) (0.42) $(0.00)# $ (0.01)
Period ended
11/30/1993**........... 10.10 0.12 0.01 0.13 (0.12) -- --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.03 $ 0.21 $ 0.01 $ 0.22 $(0.21) -- --
Period ended
03/31/1996(b).......... 10.17 0.14 (0.14) 0.00 (0.14) -- --
Year ended 11/30/1995.... 9.24 0.43 0.93 1.36 (0.43) -- --
Period ended
11/30/1994**........... 9.35 0.03 (0.11) (0.08) (0.03) -- --
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.03 $ 0.21 $ 0.01 $ 0.22 $(0.21) -- --
Period ended
03/31/1996(b).......... 10.17 0.14 (0.14) 0.00 (0.14) -- --
Year ended 11/30/1995.... 9.24 0.43 0.93 1.36 (0.43) -- --
Period ended
11/30/1994**........... 10.13 0.39 (0.88) (0.49) (0.39) $(0.00)# $ (0.01)
</TABLE>
- ---------------
* Nations Short-Term Municipal Income Fund's Primary A, Investor A, Investor C
and Investor N Shares commenced operations on October 7, 1993, November 2,
1993, May 19, 1994 and October 12, 1993, respectively.
** Nations Intermediate Municipal Bond Fund's Primary A, Investor A, Investor C
and Investor N Shares commenced operations on July 30, 1993, August 17,
1993, November 3, 1994 and December 2, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE> 86
Nations FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS RATE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.22) $ 9.97 2.13% $ 55,595 0.40%+(a) 4.40%+ 37%
Period ended
03/31/1996(b).......... (0.15) 9.98 0.96 48,511 0.40+(a) 4.37+ 16
Year ended 11/30/1995.... (0.44) 10.03 8.16 49,961 0.45(a) 4.38 82
Year ended 11/30/1994.... (0.38) 9.69 1.09 33,488 0.34(a) 3.83 57
Period ended
11/30/1993*............ (0.05) 9.96 0.06 5,999 0.09+ 3.16+ 45
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.21) $ 9.97 2.02% $ 4,416 0.60%+(a) 4.20%+ 37%
Period ended
03/31/1996(b).......... (0.14) 9.98 0.90 4,599 0.60+(a) 4.17+ 16
Year ended 11/30/1995.... (0.42) 10.03 7.95 3,741 0.65(a) 4.18 82
Year ended 11/30/1994.... (0.36) 9.69 0.90 217 0.52(a) 3.65 57
Period ended
11/30/1993*............ (0.03) 9.96 0.06 731 0.24+ 3.01+ 45
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.20) $ 9.97 1.95% $ 1,192 0.75%+(a) 4.05%+ 37%
Period ended
03/31/1996(b).......... (0.14) 9.98 0.85 2,072 0.72+(a) 4.05+ 16
Year ended 11/30/1995.... (0.42) 10.03 7.95 1,953 0.70(a) 4.13 82
Period ended
11/30/1994*............ (0.19) 9.69 0.45 323 0.59+(a) 3.58+ 57
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.20) $ 9.97 1.95% $ 9,191 0.75%+(a) 4.05%+ 37%
Period ended
03/31/1996(b).......... (0.13) 9.98 0.84 13,859 0.75+(a) 4.02+ 16
Year ended 11/30/1995.... (0.40) 10.03 7.78 9,803 0.80(a) 4.03 82
Year ended 11/30/1994.... (0.34) 9.69 0.73 13,421 0.69(a) 3.48 57
Period ended
11/30/1993*............ (0.04) 9.96 (0.02) 5,863 0.44+ 2.81+ 45
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.24) $ 10.04 2.51% $ 87,676 0.50%+(a) 4.76%+ 16%
Period ended
03/31/1996(b).......... (0.16) 10.03 0.20 77,423 0.50+(a) 4.75+ 4
Year ended 11/30/1995.... (0.48) 10.17 15.60 73,897 0.45(a) 4.91 31
Year ended 11/30/1994.... (0.46) 9.24 (4.25) 38,055 0.35(a) 4.59 51
Period ended
11/30/1993**........... (0.14) 10.11 2.46 28,335 0.24+ 4.07+ 23
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.23) $ 10.04 2.41% $ 1,538 0.70%+(a) 4.56%+ 16%
Period ended
03/31/1996(b).......... (0.15) 10.03 0.13 1,500 0.70+(a) 4.55+ 4
Year ended 11/30/1995.... (0.47) 10.17 15.38 1,249 0.65(a) 4.71 31
Year ended 11/30/1994.... (0.43) 9.24 (4.48) 172 0.53(a) 4.41 51
Period ended
11/30/1993**........... (0.12) 10.11 1.28 68 0.39+ 3.92+ 23
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.21) $ 10.04 2.26% $ 941 1.00%+(a) 4.26%+ 16%
Period ended
03/31/1996(b).......... (0.14) 10.03 0.03 716 1.00+(a) 4.25+ 4
Year ended 11/30/1995.... (0.43) 10.17 14.96 359 0.95(a) 4.41 31
Period ended
11/30/1994**........... (0.03) 9.24 (0.52) 2 0.85+(a) 4.09+ 51
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ (0.21) $ 10.04 2.26% $ 1,483 1.00%+(a) 4.26%+ 16%
Period ended
03/31/1996(b).......... (0.14) 10.03 0.03 1,623 1.00+(a) 4.25+ 4
Year ended 11/30/1995.... (0.43) 10.17 15.02 1,352 0.95(a) 4.41 31
Period ended
11/30/1994**........... (0.40) 9.24 (5.00) 943 0.85+(a) 4.09+ 51
</TABLE>
<TABLE>
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
---------------- --------------
<S> <C> <C>
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............. 0.85%+ $ 0.20
Period ended
03/31/1996(b)........... 0.86+ 0.13
Year ended 11/30/1995..... 0.93 0.39
Year ended 11/30/1994..... 0.80 0.33
Period ended
11/30/1993*............. 1.04+ 0.04
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............. 1.05%+ $ 0.19
Period ended
03/31/1996(b)........... 1.06+ 0.12
Year ended 11/30/1995..... 1.13 0.37
Year ended 11/30/1994..... 0.99 0.33
Period ended
11/30/1993*............. 1.19+ 0.02
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............. 1.20%+ $ 0.18
Period ended
03/31/1996(b)........... 1.18+ 0.12
Year ended 11/30/1995..... 1.18 0.37
Period ended
11/30/1994*............. 1.05+ 0.18
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............. 1.20%+ $ 0.18
Period ended
03/31/1996(b)........... 1.21+ 0.11
Year ended 11/30/1995..... 1.28 0.35
Year ended 11/30/1994..... 1.15 0.31
Period ended
11/30/1993*............. 1.39+ 0.04
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............. 0.81%+ $ 0.22
Period ended
03/31/1996(b)........... 0.83+ 0.15
Year ended 11/30/1995..... 0.84 0.45
Year ended 11/30/1994..... 0.88 0.40
Period ended
11/30/1993**............ 0.96+ 0.12
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............. 1.01%+ $ 0.21
Period ended
03/31/1996(b)........... 1.03+ 0.14
Year ended 11/30/1995..... 1.04 0.44
Year ended 11/30/1994..... 1.06 0.38
Period ended
11/30/1993**............ 1.11+ 0.10
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............. 1.31%+ $ 0.19
Period ended
03/31/1996(b)........... 1.33+ 0.13
Year ended 11/30/1995..... 1.34 0.40
Period ended
11/30/1994**............ 1.38+ 0.02
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............. 1.31%+ $ 0.19
Period ended
03/31/1996(b)........... 1.33+ 0.13
Year ended 11/30/1995..... 1.34 0.40
Period ended
11/30/1994**............ 1.38+ 0.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
83
<PAGE> 87
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS MUNICIPAL INCOME
FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.84 $ 0.30 $ 0.10 $ 0.40 $(0.30) -- --
Period ended
03/31/1996(b)............. 11.08 0.20 (0.24) (0.04) (0.20) -- --
Year ended 11/30/1995....... 9.64 0.59 1.44 2.03 (0.59) -- --
Year ended 11/30/1994....... 11.33 0.57 (1.44) (0.87) (0.57) $(0.00)# $ (0.25)
Year ended 11/30/1993....... 10.65 0.59 0.72 1.31 (0.59) -- (0.04)
Year ended 11/30/1992....... 10.25 0.59 0.41 1.00 (0.59) -- (0.01)
Period ended 11/30/1991*.... 10.00 0.52 0.25 0.77 (0.52) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.84 $ 0.29 $ 0.10 $ 0.39 $(0.29) -- --
Period ended
03/31/1996(b)............. 11.08 0.19 (0.24) (0.05) (0.19) -- --
Year ended 11/30/1995....... 9.64 0.57 1.44 2.01 (0.57) -- --
Year ended 11/30/1994....... 11.33 0.55 (1.44) (0.89) (0.55) $(0.00)# $ (0.25)
Year ended 11/30/1993....... 10.65 0.57 0.72 1.29 (0.57) -- (0.04)
Year ended 11/30/1992....... 10.25 0.58 0.41 0.99 (0.58) -- (0.01)
Period ended 11/30/1991*.... 10.00 0.52 0.25 0.77 (0.52) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.84 $ 0.27 $ 0.10 $ 0.37 $(0.27) -- --
Period ended
03/31/1996(b)............. 11.08 0.18 (0.24) (0.06) (0.18) -- --
Year ended 11/30/1995....... 9.64 0.51 1.44 1.95 (0.51) -- --
Year ended 11/30/1994....... 11.33 0.49 (1.44) (0.95) (0.49) $(0.00)# $ (0.25)
Year ended 11/30/1993....... 10.65 0.50 0.72 1.22 (0.50) -- (0.04)
Period ended 11/30/1992*.... 10.48 0.21 0.17 0.38 (0.21) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.84 $ 0.26 $ 0.10 $ 0.36 $(0.26) -- --
Period ended
03/31/1996(b)............. 11.08 0.17 (0.24) (0.07) (0.17) -- --
Year ended 11/30/1995....... 9.64 0.51 1.44 1.95 (0.51) -- --
Year ended 11/30/1994....... 11.33 0.49 (1.44) (0.95) (0.49) $(0.00)# $ (0.25)
Period ended 11/30/1993*.... 11.13 0.23 0.20 0.43 (0.23) -- --
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.46 $ 0.25 $(0.02) $ 0.23 $(0.25) -- --
Period ended
03/31/1996(b)............. 10.63 0.17 (0.17) 0.00 (0.17) -- --
Year ended 11/30/1995....... 9.61 0.48 1.02 1.50 (0.48) -- --
Year ended 11/30/1994....... 10.50 0.45 (0.88) (0.43) (0.45) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 10.00 0.44 0.50 0.94 (0.44) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.46 $ 0.24 $(0.02) $ 0.22 $(0.24) -- --
Period ended
03/31/1996(b)............. 10.63 0.16 (0.17) (0.01) (0.16) -- --
Year ended 11/30/1995....... 9.61 0.46 1.02 1.48 (0.46) -- --
Year ended 11/30/1994....... 10.50 0.43 (0.88) (0.45) (0.43) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 9.99 0.42 0.51 0.93 (0.42) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.46 $ 0.22 $(0.02) $ 0.20 $(0.22) -- --
Period ended
03/31/1996(b)............. 10.63 0.15 (0.17) (0.02) (0.15) -- --
Year ended 11/30/1995....... 9.61 0.43 1.02 1.45 (0.43) -- --
Year ended 11/30/1994....... 10.50 0.39 (0.88) (0.49) (0.39) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 9.98 0.35 0.52 0.87 (0.35) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.46 $ 0.22 $(0.02) $ 0.20 $(0.22) -- --
Period ended
03/31/1996(b)............. 10.63 0.15 (0.17) (0.02) (0.15) -- --
Year ended 11/30/1995....... 9.61 0.43 1.02 1.45 (0.43) -- --
Year ended 11/30/1994....... 10.50 0.40 (0.88) (0.48) (0.40) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 10.32 0.18 0.18 0.36 (0.18) -- --
</TABLE>
- ---------------
* Nations Municipal Income Fund's Primary A, Investor A, Investor C and
Investor N Shares commenced operations on February 1, 1991, February 1,
1991, June 17, 1992 and June 7, 1993, respectively.
** Nations Florida Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor C and Investor N Shares commenced operations on December 11, 1992,
December 14, 1992, December 17, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 88
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING
DIVIDENDS VALUE END OF EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS MUNICIPAL INCOME
FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.30) $ 10.94 3.72% $ 67,485 0.60%+
Period ended
03/31/1996(b)............. (0.20) 10.84 (0.41) 68,022 0.60+
Year ended 11/30/1995....... (0.59) 11.08 21.55 68,836 0.60
Year ended 11/30/1994....... (0.82) 9.64 (8.17) 59,279 0.61
Year ended 11/30/1993....... (0.63) 11.33 12.54 88,386 0.52
Year ended 11/30/1992....... (0.60) 10.65 9.97+++ 62,387 0.43
Period ended 11/30/1991*.... (0.52) 10.25 7.87+++ 23,631 0.20+
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.29) $ 10.94 3.62% $ 15,320 0.80%+
Period ended
03/31/1996(b)............. (0.19) 10.84 (0.47) 26,085 0.80+
Year ended 11/30/1995....... (0.57) 11.08 21.31 27,963 0.80
Year ended 11/30/1994....... (0.80) 9.64 (8.34) 23,754 0.79
Year ended 11/30/1993....... (0.61) 11.33 12.37 28,415 0.60
Year ended 11/30/1992....... (0.59) 10.65 9.88+++ 21,056 0.52
Period ended 11/30/1991*.... (0.52) 10.25 7.87+++ 7,234 0.20+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.27) $ 10.94 3.46% $ 1,908 1.10%+
Period ended
03/31/1996(b)............. (0.18) 10.84 (0.60) 2,173 1.16+
Year ended 11/30/1995....... (0.51) 11.08 20.65 2,268 1.35
Year ended 11/30/1994....... (0.74) 9.64 (8.86) 3,064 1.36
Year ended 11/30/1993....... (0.54) 11.33 11.69 6,331 1.27
Period ended 11/30/1992*.... (0.21) 10.65 3.63+++ 3,774 1.21+
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.26) $ 10.94 3.33% $ 16,313 1.35%+
Period ended
03/31/1996(b)............. (0.17) 10.84 (0.66) 16,870 1.35+
Year ended 11/30/1995....... (0.51) 11.08 20.65 18,165 1.35
Year ended 11/30/1994....... (0.74) 9.64 (8.86) 17,101 1.36
Period ended 11/30/1993*.... (0.23) 11.33 3.89 15,133 1.27+
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.25) $ 10.44 2.19% $ 44,819 0.50%+(a)
Period ended
03/31/1996(b)............. (0.17) 10.46 (0.06) 44,988 0.50+(a)
Year ended 11/30/1995....... (0.48) 10.63 15.92 44,038 0.55(a)
Year ended 11/30/1994....... (0.46) 9.61 (4.26) 42,717 0.55(a)
Period ended 11/30/1993**... (0.44) 10.50 9.50 41,489 0.44+
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.24) $ 10.44 2.09% $ 2,884 0.70%+(a)
Period ended
03/31/1996(b)............. (0.16) 10.46 (0.13) 2,029 0.70+(a)
Year ended 11/30/1995....... (0.46) 10.63 15.68 2,292 0.75(a)
Year ended 11/30/1994....... (0.44) 9.61 (4.43) 2,114 0.73(a)
Period ended 11/30/1993**... (0.42) 10.50 9.44 2,261 0.59+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.22) $ 10.44 1.94% $ 120 1.00%+(a)
Period ended
03/31/1996(b)............. (0.15) 10.46 (0.23) 275 1.00+(a)
Year ended 11/30/1995....... (0.43) 10.63 15.34 277 1.05(a)
Year ended 11/30/1994....... (0.40) 9.61 (4.81) 614 1.13(a)
Period ended 11/30/1993**... (0.35) 10.50 8.80 684 1.19+
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.22) $ 10.44 1.94% $ 4,041 1.00%+(a)
Period ended
03/31/1996(b)............. (0.15) 10.46 (0.23) 4,001 1.00+(a)
Year ended 11/30/1995....... (0.43) 10.63 15.34 4,775 1.05(a)
Year ended 11/30/1994....... (0.41) 9.61 (4.73) 4,691 1.05(a)
Period ended 11/30/1993**... (0.18) 10.50 3.53 3,328 0.94+
<CAPTION>
WITHOUT WAIVERS AND/OR
RATIO OF EXPENSE REIMBURSEMENTS
OPERATING -------------------------
EXPENSES TO RATIO OF RATIO OF
AVERAGE NET NET INVESTMENT OPERATING
ASSETS INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
INCLUDING AVERAGE NET TURNOVER AVERAGE NET INCOME
INTEREST EXPENSE ASSETS RATE ASSETS PER SHARE
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS MUNICIPAL INCOME
FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 5.47%+ 7% 0.90%+ $ 0.28
Period ended
03/31/1996(b)............. (a) 5.35+ 4 0.91+ 0.19
Year ended 11/30/1995....... (a) 5.63 49 0.88 0.56
Year ended 11/30/1994....... 0.62% 5.42 63 0.90 0.54
Year ended 11/30/1993....... -- 5.24 48 0.84 0.55
Year ended 11/30/1992....... -- 5.51 19 0.90 0.54
Period ended 11/30/1991*.... -- 6.07+ 54 0.88+ 0.45
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 5.27%+ 7% 1.10%+ $ 0.27
Period ended
03/31/1996(b)............. (a) 5.15+ 4 1.11+ 0.18
Year ended 11/30/1995....... (a) 5.43 49 1.08 0.54
Year ended 11/30/1994....... 0.80% 5.24 63 1.08 0.52
Year ended 11/30/1993....... -- 5.09 48 0.99 0.53
Year ended 11/30/1992....... -- 5.42 19 0.99 0.53
Period ended 11/30/1991*.... -- 6.07+ 54 0.88+ 0.45
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 4.97%+ 7% 1.40%+ $ 0.25
Period ended
03/31/1996(b)............. (a) 4.79+ 4 1.47+ 0.17
Year ended 11/30/1995....... (a) 4.88 49 1.63 0.48
Year ended 11/30/1994....... 1.37% 4.67 63 1.65 0.46
Year ended 11/30/1993....... -- 4.49 48 1.59 0.46
Period ended 11/30/1992*.... -- 4.36+ 19 1.61+ 0.19
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 4.72%+ 7% 1.65%+ $ 0.24
Period ended
03/31/1996(b)............. (a) 4.60+ 4 1.66+ 0.16
Year ended 11/30/1995....... (a) 4.88 49 1.63 0.48
Year ended 11/30/1994....... 1.37% 4.67 63 1.65 0.46
Period ended 11/30/1993*.... -- 4.49+ 48 1.59+ 0.22
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.72%+ 10% 0.80%+ $ 0.23
Period ended
03/31/1996(b)............. -- 4.66+ 18 0.86+ 0.15
Year ended 11/30/1995....... -- 4.70 27 0.81 0.46
Year ended 11/30/1994....... -- 4.44 34 0.76 0.43
Period ended 11/30/1993**... -- 4.28+ 15 0.80+ 0.40
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.52%+ 10% 1.00%+ $ 0.22
Period ended
03/31/1996(b)............. -- 4.46+ 18 1.06+ 0.14
Year ended 11/30/1995....... -- 4.50 27 1.01 0.44
Year ended 11/30/1994....... -- 4.26 34 0.94 0.41
Period ended 11/30/1993**... -- 4.13+ 15 0.95+ 0.39
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.22%+ 10% 1.30%+ $ 0.20
Period ended
03/31/1996(b)............. -- 4.16+ 18 1.36+ 0.13
Year ended 11/30/1995....... -- 4.20 27 1.31 0.41
Year ended 11/30/1994....... -- 3.86 34 1.34 0.37
Period ended 11/30/1993**... -- 3.53+ 15 1.55+ 0.31
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.22%+ 10% 1.30%+ $ 0.20
Period ended
03/31/1996(b)............. -- 4.16+ 18 1.36+ 0.13
Year ended 11/30/1995....... -- 4.20 27 1.31 0.41
Year ended 11/30/1994....... -- 3.94 34 1.26 0.38
Period ended 11/30/1993**... -- 3.78+ 15 1.30+ 0.17
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 89
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS FLORIDA MUNICIPAL
BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.47 $ 0.24 $ 0.07 $ 0.31 $(0.24) -- --
Period ended
03/31/1996(b)............. 9.76 0.16 (0.29) (0.13) (0.16) -- --
Year ended 11/30/1995....... 8.40 0.51 1.36 1.87 (0.51) -- --
Period ended 11/30/1994*.... 9.93 0.49 (1.53) (1.04) (0.49) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.47 $ 0.23 $ 0.07 $ 0.30 $(0.23) -- --
Period ended
03/31/1996(b)............. 9.76 0.15 (0.29) (0.14) (0.15) -- --
Year ended 11/30/1995....... 8.40 0.49 1.36 1.85 (0.49) -- --
Period ended 11/30/1994*.... 9.98 0.47 (1.58) (1.11) (0.47) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.47 $ 0.22 $ 0.07 $ 0.29 $(0.22) -- --
Period ended
03/31/1996(b)............. 9.76 0.14 (0.29) (0.15) (0.14) -- --
Year ended 11/30/1995....... 8.40 0.44 1.36 1.80 (0.44) -- --
Period ended 11/30/1994*.... 8.47 0.03 (0.07) (0.04) (0.03) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.47 $ 0.21 $ 0.07 $ 0.28 $(0.21) -- --
Period ended
03/31/1996(b)............. 9.76 0.14 (0.29) (0.15) (0.14) -- --
Year ended 11/30/1995....... 8.40 0.44 1.36 1.80 (0.44) -- --
Year ended 11/30/1994....... 9.73 0.45 (1.33) (0.88) (0.45) -- --
Period ended 11/30/1993*.... 10.00 0.03 (0.27) (0.24) (0.03) -- --
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.63 $ 0.25 $ 0.00 $ 0.25 $(0.25) -- --
Period ended
03/31/1996(b)............. 10.81 0.17 (0.18) (0.01) (0.17) -- --
Year ended 11/30/1995....... 9.82 0.50 0.99 1.49 (0.50) -- --
Year ended 11/30/1994....... 10.82 0.49 (0.98) (0.49) (0.49) $(0.00)# $ (0.02)
Year ended 11/30/1993....... 10.29 0.50 0.56 1.06 (0.50) -- (0.03)
Period ended 11/30/1992**... 10.00 0.41 0.29 0.70 (0.41) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.63 $ 0.24 $ 0.00 $ 0.24 $(0.24) -- --
Period ended
03/31/1996(b)............. 10.81 0.16 (0.18) (0.02) (0.16) -- --
Year ended 11/30/1995....... 9.82 0.48 0.99 1.47 (0.48) -- --
Year ended 11/30/1994....... 10.82 0.47 (0.98) (0.51) (0.47) $(0.00)# $ (0.02)
Year ended 11/30/1993....... 10.28 0.48 0.57 1.05 (0.48) -- (0.03)
Period ended 11/30/1992**... 9.98 0.30 0.30 0.60 (0.30) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.63 $ 0.22 $ 0.00 $ 0.22 $(0.22) -- --
Period ended
03/31/1996(b)............. 10.81 0.15 (0.18) (0.03) (0.15) -- --
Year ended 11/30/1995....... 9.82 0.45 0.99 1.44 (0.45) -- --
Year ended 11/30/1994....... 10.82 0.43 (0.98) (0.55) (0.43) $(0.00)# $ (0.02)
Year ended 11/30/1993....... 10.29 0.42 0.56 0.98 (0.42) -- (0.03)
Period ended 11/30/1992**... 10.11 0.20 0.18 0.38 (0.20) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.63 $ 0.22 $ 0.00 $ 0.22 $(0.22) -- --
Period ended
03/31/1996(b)............. 10.81 0.15 (0.18) (0.03) (0.15) -- --
Year ended 11/30/1995....... 9.82 0.45 0.99 1.44 (0.45) -- --
Year ended 11/30/1994....... 10.82 0.44 (0.98) (0.54) (0.44) $(0.00)# $ (0.02)
Period ended 11/30/1993**... 10.61 0.20 0.21 0.41 (0.20) -- --
</TABLE>
- ---------------
* Nations Florida Municipal Bond Fund's Primary A, Investor A, Investor C and
Investor N Shares commenced operations on December 13, 1993, December 10,
1993, November 3, 1994 and October 22, 1993, respectively.
** Nations Georgia Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor C and Investor N Shares commenced operations on March 1, 1992, May
4, 1992, June 17, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 90
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING
DIVIDENDS VALUE END OF EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS FLORIDA MUNICIPAL
BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.24) $ 9.54 3.34% $ 13,490 0.60%+(a)
Period ended
03/31/1996(b)............. (0.16) 9.47 (1.33) 13,044 0.60+(a)
Year ended 11/30/1995....... (0.51) 9.76 22.69 11,219 0.39(a)
Period ended 11/30/1994*.... (0.49) 8.40 (10.70) 4,258 0.21+(a)
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.23) $ 9.54 3.24% $ 2,096 0.80%+(a)
Period ended
03/31/1996(b)............. (0.15) 9.47 (1.40) 1,836 0.80+(a)
Year ended 11/30/1995....... (0.49) 9.76 22.45 1,787 0.59(a)
Period ended 11/30/1994*.... (0.47) 8.40 (11.35) 1,024 0.39+(a)
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.22) $ 9.54 3.09% $ 39 1.10%+(a)
Period ended
03/31/1996(b)............. (0.14) 9.47 (1.52) 38 1.15+(a)
Year ended 11/30/1995....... (0.44) 9.76 21.80 38 1.14(a)
Period ended 11/30/1994*.... (0.03) 8.40 (0.43) 2 0.96+(a)
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.21) $ 9.54 2.96% $ 21,965 1.35%+(a)
Period ended
03/31/1996(b)............. (0.14) 9.47 (1.58) 23,947 1.35+(a)
Year ended 11/30/1995....... (0.44) 9.76 21.78 25,398 1.14(a)
Year ended 11/30/1994....... (0.45) 8.40 (9.37) 19,868 0.96(a)
Period ended 11/30/1993*.... (0.03) 9.73 (2.35) 11,434 0.68+
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.25) $ 10.63 2.40% $ 38,861 0.50%+
Period ended
03/31/1996(b)............. (0.17) 10.63 (0.13) 38,222 0.50+
Year ended 11/30/1995....... (0.50) 10.81 15.42 40,383 0.55
Year ended 11/30/1994....... (0.51) 9.82 (4.70) 33,111 0.54
Year ended 11/30/1993....... (0.53) 10.82 10.43 30,738 0.46
Period ended 11/30/1992**... (0.41) 10.29 7.07+++ 20,584 0.20+
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.24) $ 10.63 2.29% $ 8,679 0.70%+
Period ended
03/31/1996(b)............. (0.16) 10.63 (0.19) 8,625 0.70+
Year ended 11/30/1995....... (0.48) 10.81 15.20 9,175 0.75
Year ended 11/30/1994....... (0.49) 9.82 (4.87) 10,401 0.72
Year ended 11/30/1993....... (0.51) 10.82 10.37 16,752 0.61
Period ended 11/30/1992**... (0.30) 10.28 6.12+++ 3,809 0.34+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.22) $ 10.63 2.14% $ 2,412 1.00%+
Period ended
03/31/1996(b)............. (0.15) 10.63 (0.29) 2,445 1.00+
Year ended 11/30/1995....... (0.45) 10.81 14.85 2,606 1.05
Year ended 11/30/1994....... (0.45) 9.82 (5.25) 2,397 1.12
Year ended 11/30/1993....... (0.45) 10.82 9.61 2,990 1.21
Period ended 11/30/1992**... (0.20) 10.29 3.82+++ 992 0.91+
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ (0.22) $ 10.63 2.14% $ 7,758 1.00%+
Period ended
03/31/1996(b)............. (0.15) 10.63 (0.29) 8,098 1.00+
Year ended 11/30/1995....... (0.45) 10.81 14.85 8,160 1.05
Year ended 11/30/1994....... (0.46) 9.82 (5.17) 7,269 1.04
Period ended 11/30/1993**... (0.20) 10.82 3.86 4,506 0.96+
<CAPTION>
WITHOUT WAIVERS AND/OR
RATIO OF EXPENSE REIMBURSEMENTS
OPERATING -------------------------
EXPENSES TO RATIO OF RATIO OF
AVERAGE NET NET INVESTMENT OPERATING
ASSETS INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
INCLUDING AVERAGE NET TURNOVER AVERAGE NET INCOME
INTEREST EXPENSE ASSETS RATE ASSETS PER SHARE
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS FLORIDA MUNICIPAL
BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 5.11%+ 13% 0.94%+ $ 0.23
Period ended
03/31/1996(b)............. -- 5.03+ 7 0.96+ 0.15
Year ended 11/30/1995....... -- 5.44 13 0.95 0.46
Period ended 11/30/1994*.... -- 5.55+ 46 0.91+ 0.43
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.91%+ 13% 1.14%+ $ 0.22
Period ended
03/31/1996(b)............. -- 4.83+ 7 1.16+ 0.14
Year ended 11/30/1995....... -- 5.24 13 1.15 0.44
Period ended 11/30/1994*.... -- 5.37+ 46 1.09+ 0.42
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.61%+ 13% 1.44%+ $ 0.21
Period ended
03/31/1996(b)............. -- 4.48+ 7 1.51+ 0.13
Year ended 11/30/1995....... -- 4.69 13 1.70 0.39
Period ended 11/30/1994*.... -- 4.80+ 46 1.66+ 0.03
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... -- 4.36%+ 13% 1.69%+ $ 0.20
Period ended
03/31/1996(b)............. -- 4.28+ 7 1.71+ 0.13
Year ended 11/30/1995....... -- 4.69 13 1.70 0.39
Year ended 11/30/1994....... -- 4.80 46 1.66 0.38
Period ended 11/30/1993*.... -- 3.29+ 0 1.84+ 0.02
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 4.74%+ 3% 0.80%+ $ 0.24
Period ended
03/31/1996(b)............. (a) 4.67+ 3 0.83+ 0.16
Year ended 11/30/1995....... (a) 4.76 17 0.80 0.47
Year ended 11/30/1994....... 0.55% 4.74 22 0.75 0.47
Year ended 11/30/1993....... -- 4.57 6 0.77 0.46
Period ended 11/30/1992**... -- 5.25+ 12 0.77+ 0.37
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 4.54%+ 3% 1.00%+ $ 0.23
Period ended
03/31/1996(b)............. (a) 4.47+ 3 1.03+ 0.15
Year ended 11/30/1995....... (a) 4.56 17 1.00 0.45
Year ended 11/30/1994....... 0.73% 4.56 22 0.93 0.45
Year ended 11/30/1993....... -- 4.42 6 0.92 0.45
Period ended 11/30/1992**... -- 5.01+ 12 0.91+ 0.27
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 4.24%+ 3% 1.30%+ $ 0.21
Period ended
03/31/1996(b)............. (a) 4.17+ 3 1.33+ 0.14
Year ended 11/30/1995....... (a) 4.26 17 1.30 0.42
Year ended 11/30/1994....... 1.13% 4.16 22 1.33 0.41
Year ended 11/30/1993....... -- 3.82 6 1.52 0.39
Period ended 11/30/1992**... -- 4.21+ 12 1.72+ 0.16
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... (a) 4.24%+ 3% 1.30%+ $ 0.21
Period ended
03/31/1996(b)............. (a) 4.17+ 3 1.33+ 0.14
Year ended 11/30/1995....... (a) 4.26 17 1.30 0.42
Year ended 11/30/1994....... 1.05% 4.24 22 1.25 0.42
Period ended 11/30/1993**... -- 4.07+ 6 1.27+ 0.18
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 91
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET IN EXCESS OF
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT REALIZED NET REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS GEORGIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996 (unaudited)... $ 9.48 $ 0.24 $ 0.06 $ 0.30 $(0.24) -- --
Period ended
03/31/1996(b)........... 9.72 0.16 (0.24) (0.08) (0.16) -- --
Year ended 11/30/1995..... 8.38 0.51 1.34 1.85 (0.51) -- --
Period ended
11/30/1994*............. 10.02 0.46 (1.64) (1.18) (0.46) -- --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 9.48 $ 0.22 $ 0.06 $ 0.28 $(0.22) -- --
Period ended
03/31/1996(b)........... 9.72 0.14 (0.24) (0.10) (0.14) -- --
Year ended 11/30/1995..... 8.38 0.49 1.34 1.83 (0.49) -- --
Period ended
11/30/1994*............. 9.99 0.47 (1.61) (1.14) (0.47) -- --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 9.48 $ 0.21 $ 0.06 $ 0.27 $(0.21) -- --
Period ended 03/31/1996
(b)..................... 9.72 0.14 (0.24) (0.10) (0.14) -- --
Year ended 11/30/1995..... 8.38 0.44 1.34 1.78 (0.44) -- --
Period ended
11/30/1994*............. 8.45 0.03 (0.07) (0.04) (0.03) -- --
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 9.48 $ 0.20 $ 0.06 $ 0.26 $(0.20) -- --
Period ended 03/31/1996
(b)..................... 9.72 0.14 (0.24) (0.10) (0.14) -- --
Year ended 11/30/1995..... 8.38 0.44 1.34 1.78 (0.44) -- --
Year ended 11/30/1994..... 9.81 0.45 (1.43) (0.98) (0.45) -- --
Period ended
11/30/1993*............. 10.00 0.04 (0.19) (0.15) (0.04) -- --
NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 10.80 $ 0.25 $(0.04) $ 0.21 $(0.25) -- --
Period ended 03/31/1996
(b)..................... 10.95 0.17 (0.15) 0.02 (0.17) -- --
Year ended 11/30/1995..... 10.00 0.51 0.98 1.49 (0.51) $ (0.03) --
Year ended 11/30/1994..... 11.09 0.50 (0.99) (0.49) (0.50) (0.10) $ (0.00)#
Year ended 11/30/1993..... 10.72 0.52 0.44 0.96 (0.52) (0.07) --
Year ended 11/30/1992..... 10.44 0.55 0.31 0.86 (0.55) (0.03) --
Year ended 11/30/1991..... 10.21 0.60 0.24 0.84 (0.60) (0.01) --
Period ended
11/30/1990**............ 10.00 0.16 0.21 0.37 (0.16) -- --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 10.80 $ 0.24 $(0.04) $ 0.20 $(0.24) -- --
Period ended 03/31/1996
(b)..................... 10.95 0.16 (0.15) 0.01 (0.16) -- --
Year ended 11/30/1995..... 10.00 0.48 0.98 1.46 (0.48) $ (0.03) --
Year ended 11/30/1994..... 11.09 0.48 (0.99) (0.51) (0.48) (0.10) $ (0.00)#
Year ended 11/30/1993..... 10.72 0.51 0.44 0.95 (0.51) (0.07) --
Year ended 11/30/1992..... 10.44 0.54 0.31 0.85 (0.54) (0.03) --
Year ended 11/30/1991..... 10.21 0.60 0.24 0.84 (0.60) (0.01) --
Period ended
11/30/1990**............ 10.00 0.16 0.21 0.37 (0.16) -- --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 10.80 $ 0.23 $(0.04) $ 0.19 $(0.23) -- --
Period ended 03/31/1996
(b)..................... 10.95 0.15 (0.15) 0.00 (0.15) -- --
Year ended 11/30/1995..... 10.00 0.45 0.98 1.43 (0.45) $ (0.03) --
Year ended 11/30/1994..... 11.09 0.44 (0.99) (0.55) (0.44) (0.10) $ (0.00)#
Year ended 11/30/1993..... 10.72 0.40 0.44 0.84 (0.40) (0.07) --
Period ended
11/30/1992**............ 10.58 0.19 0.14 0.33 (0.19) -- --
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............. $ 10.80 $ 0.23 $(0.04) $ 0.19 $(0.23) -- --
Period ended 03/31/1996
(b)..................... 10.95 0.15 (0.15) 0.00 (0.15) -- --
Year ended 11/30/1995..... 10.00 0.45 0.98 1.43 (0.45) $ (0.03) --
Year ended 11/30/1994..... 11.09 0.45 (0.99) (0.54) (0.45) (0.10) $ (0.00)#
Period ended
11/30/1993**............ 10.94 0.21 0.17 0.38 (0.21) (0.02) --
</TABLE>
- ---------------
* Nations Georgia Municipal Bond Fund's Primary A, Investor A, Investor C and
Investor N Shares commenced operations on January 13, 1994, December 30,
1993, November 3, 1994 and October 21, 1993, respectively.
** Nations Maryland Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor C and Investor N Shares commenced operations on September 1, 1990,
September 1, 1990, June 17, 1992 and June 8, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 92
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
TOTAL NET ASSET NET ASSETS
DIVIDENDS VALUE END OF
AND END OF TOTAL PERIOD
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S)
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS GEORGIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.24) $ 9.54 3.17% $ 3,031
Period ended 03/31/1996(b)............................ (0.16) 9.48 (0.84) 2,068
Year ended 11/30/1995................................. (0.51) 9.72 22.48 2,628
Period ended 11/30/1994*.............................. (0.46) 8.38 (12.07) 232
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.22) $ 9.54 3.04% $ 153
Period ended 03/31/1996(b)............................ (0.14) 9.48 (1.08) 7
Year ended 11/30/1995................................. (0.49) 9.72 22.25 7
Period ended 11/30/1994*.............................. (0.47) 8.38 (11.71) 6
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.21) $ 9.54 2.92% $ 71
Period ended 03/31/1996(b)............................ (0.14) 9.48 (1.03) 69
Year ended 11/30/1995................................. (0.44) 9.72 21.59 69
Period ended 11/30/1994*.............................. (0.03) 8.38 (0.44) 2
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.20) $ 9.54 2.79% $ 11,414
Period ended 03/31/1996(b)............................ (0.14) 9.48 (1.09) 12,254
Year ended 11/30/1995................................. (0.44) 9.72 21.58 13,017
Year ended 11/30/1994................................. (0.45) 8.38 (10.28) 9,500
Period ended 11/30/1993*.............................. (0.04) 9.81 (1.49) 4,820
NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.25) $ 10.76 2.00% $ 59,825
Period ended 03/31/1996(b)............................ (0.17) 10.80 0.16 61,337
Year ended 11/30/1995................................. (0.54) 10.95 15.16 62,460
Year ended 11/30/1994................................. (0.60) 10.00 (4.64) 61,349
Year ended 11/30/1993................................. (0.59) 11.09 9.11 61,552
Year ended 11/30/1992................................. (0.58) 10.72 8.41+++ 48,192
Year ended 11/30/1991................................. (0.61) 10.44 8.46+++ 31,088
Period ended 11/30/1990**............................. (0.16) 10.21 3.72+++ 11,087
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.24) $ 10.76 1.90% $ 16,810
Period ended 03/31/1996(b)............................ (0.16) 10.80 0.09 19,456
Year ended 11/30/1995................................. (0.51) 10.95 14.94 21,208
Year ended 11/30/1994................................. (0.58) 10.00 (4.82) 22,145
Year ended 11/30/1993................................. (0.58) 11.09 8.96 22,144
Year ended 11/30/1992................................. (0.57) 10.72 8.32+++ 20,092
Year ended 11/30/1991................................. (0.61) 10.44 8.46+++ 9,934
Period ended 11/30/1990**............................. (0.16) 10.21 3.72+++ 2,228
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.23) $ 10.76 1.75% $ 2,575
Period ended 03/31/1996(b)............................ (0.15) 10.80 (0.01) 2,900
Year ended 11/30/1995................................. (0.48) 10.95 14.59 2,808
Year ended 11/30/1994................................. (0.54) 10.00 (5.20) 2,570
Year ended 11/30/1993................................. (0.47) 11.09 8.30 4,424
Period ended 11/30/1992**............................. (0.19) 10.72 3.13+++ 1,796
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited)............... $ (0.23) $ 10.76 1.75% $ 4,385
Period ended 03/31/1996(b)............................ (0.15) 10.80 (0.01) 4,500
Year ended 11/30/1995................................. (0.48) 10.95 14.59 4,485
Year ended 11/30/1994................................. (0.55) 10.00 (5.12) 4,368
Period ended 11/30/1993**............................. (0.23) 11.09 3.53 3,234
</TABLE>
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------------
RATIO OF RATIO OF RATIO OF
OPERATING NET INVESTMENT OPERATING
EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET INCOME
ASSETS ASSETS RATE ASSETS PER SHARE
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS GEORGIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited)............. 0.60%+(a) 4.99%+ 4% 1.01%+ $ 0.22
Period ended 03/31/1996(b).......................... 0.60+(a) 4.96+ 7 1.14+ 0.14
Year ended 11/30/1995............................... 0.40(a) 5.42 26 1.09 0.44
Period ended 11/30/1994*............................ 0.21+(a) 5.60+ 35 1.04+ 0.39
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited)............. 0.80%+(a) 4.79%+ 4% 1.21%+ $ 0.20
Period ended 03/31/1996(b).......................... 0.80+(a) 4.76+ 7 1.34+ 0.12
Year ended 11/30/1995............................... 0.60(a) 5.22 26 1.29 0.42
Period ended 11/30/1994*............................ 0.39+(a) 5.42+ 35 1.22+ 0.40
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited)............. 1.10%+(a) 4.49%+ 4% 1.51%+ $ 0.19
Period ended 03/31/1996(b).......................... 1.16+(a) 4.40+ 7 1.70+ 0.12
Year ended 11/30/1995............................... 1.15(a) 4.67 26 1.84 0.37
Period ended 11/30/1994*............................ 0.96+(a) 4.85+ 35 1.79+ 0.02
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited)............. 1.35%+(a) 4.24%+ 4% 1.76%+ $ 0.18
Period ended 03/31/1996(b).......................... 1.35+(a) 4.21+ 7 1.89+ 0.12
Year ended 11/30/1995............................... 1.15(a) 4.67 26 1.84 0.37
Year ended 11/30/1994............................... 0.96(a) 4.85 35 1.79 0.38
Period ended 11/30/1993*............................ 0.70+ 3.63+ 30 2.08+ 0.03
NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited)............. 0.50%+(a) 4.71%+ 1% 0.77%+ $ 0.24
Period ended 03/31/1996(b).......................... 0.50+(a) 4.62+ 4 0.81+ 0.16
Year ended 11/30/1995............................... 0.55(a) 4.76 11 0.80 0.48
Year ended 11/30/1994............................... 0.53(a) 4.73 22 0.73 0.48
Year ended 11/30/1993............................... 0.49 4.73 26 0.73 0.49
Year ended 11/30/1992............................... 0.39 5.12 38 0.78 0.51
Year ended 11/30/1991............................... 0.20 5.76 26 0.71 0.55
Period ended 11/30/1990**........................... 0.21+ 6.12+ 49 0.84+ 0.13
INVESTOR A SHARES
Six Months ended 09/30/1996(unaudited).............. 0.70%+(a) 4.51%+ 1% 0.97%+ $ 0.23
Period ended 03/31/1996(b).......................... 0.70+(a) 4.42+ 4 1.01+ 0.15
Year ended 11/30/1995............................... 0.75(a) 4.56 11 1.00 0.45
Year ended 11/30/1994............................... 0.71(a) 4.55 22 0.91 0.46
Year ended 11/30/1993............................... 0.64 4.58 26 0.88 0.48
Year ended 11/30/1992............................... 0.48 4.98 38 0.87 0.50
Year ended 11/30/1991............................... 0.20 5.76 26 0.71 0.55
Period ended 11/30/1990**........................... 0.21+ 6.12+ 49 0.84+ 0.13
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited)............. 1.00%+(a) 4.21%+ 1% 1.27%+ $ 0.22
Period ended 03/31/1996(b).......................... 1.00+(a) 4.12+ 4 1.31+ 0.14
Year ended 11/30/1995............................... 1.05(a) 4.26 11 1.30 0.42
Year ended 11/30/1994............................... 1.11(a) 4.15 22 1.31 0.42
Year ended 11/30/1993............................... 1.24 3.98 26 1.48 0.38
Period ended 11/30/1992**........................... 1.16+ 3.88+ 38 1.44+ 0.18
INVESTOR N SHARES
Six Months ended 09/30/1996(unaudited).............. 1.00%+(a) 4.21%+ 1% 1.27%+ $ 0.22
Period ended 03/31/1996(b).......................... 1.00+(a) 4.12+ 4 1.31+ 0.14
Year ended 11/30/1995............................... 1.05(a) 4.26 11 1.30 0.42
Year ended 11/30/1994............................... 1.03(a) 4.23 22 1.23 0.43
Period ended 11/30/1993**........................... 0.99+ 4.23+ 26 1.23+ 0.20
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 93
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS MARYLAND MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.39 $ 0.23 $ 0.05 $ 0.28 $(0.23) -- --
Period ended
03/31/1996(b)............. 9.63 0.15 (0.24) (0.09) (0.15) -- --
Year ended 11/30/1995....... 8.37 0.48 1.26 1.74 (0.48) -- --
Period ended 11/30/1994*.... 8.90 0.11 (0.53) (0.42) (0.11) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.39 $ 0.22 $ 0.05 $ 0.27 $(0.22) -- --
Period ended
03/31/1996(b)............. 9.63 0.14 (0.24) (0.10) (0.14) -- --
Year ended 11/30/1995....... 8.37 0.46 1.26 1.72 (0.46) -- --
Year ended 11/30/1994....... 9.77 0.49 (1.40) (0.91) (0.49) -- --
Period ended 11/30/1993*.... 9.80 0.03 (0.03) 0.00 (0.03) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.39 $ 0.21 $ 0.05 $ 0.26 $(0.21) -- --
Period ended
03/31/1996(b)............. 9.63 0.13 (0.24) (0.11) (0.13) -- --
Year ended 11/30/1995....... 8.37 0.41 1.26 1.67 (0.41) -- --
Period ended 11/30/1994*.... 8.44 0.03 (0.07) (0.04) (0.03) -- --
INVESTOR N SHARES
Six Months Ended 09/30/1996
(unaudited)............... $ 9.39 $ 0.19 $ 0.05 $ 0.24 $(0.19) -- --
Period ended
03/31/1996(b)............. 9.63 0.13 (0.24) (0.11) (0.13) -- --
Year ended 11/30/1995....... 8.37 0.41 1.26 1.67 (0.41) -- --
Year ended 11/30/1994....... 9.77 0.44 (1.40) (0.96) (0.44) -- --
Period ended 11/30/1993*.... 10.00 0.04 (0.23) (0.19) (0.04) -- --
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.36 $ 0.24 $ 0.02 $ 0.26 $(0.24) -- --
Period ended
03/31/1996(b)............. 10.51 0.16 (0.15) 0.01 (0.16) -- --
Year ended 11/30/1995....... 9.53 0.45 0.99 1.44 (0.45) $(0.00)# $ (0.01)
Year ended 11/30/1994....... 10.46 0.44 (0.88) (0.44) (0.44) -- (0.05)
Period ended 11/30/1993**... 10.00 0.43 0.46 0.89 (0.43) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.36 $ 0.23 $ 0.02 $ 0.25 $(0.23) -- --
Period ended
03/31/1996(b)............. 10.51 0.15 (0.15) 0.00 (0.15) -- --
Year ended 11/30/1995....... 9.53 0.43 0.99 1.42 (0.43) $(0.00)# $ (0.01)
Year ended 11/30/1994....... 10.46 0.42 (0.88) (0.46) (0.42) -- (0.05)
Period ended 11/30/1993**... 10.01 0.42 0.45 0.87 (0.42) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.36 $ 0.21 $ 0.02 $ 0.23 $(0.21) -- --
Period ended
03/31/1996(b)............. 10.51 0.14 (0.15) (0.01) (0.14) -- --
Year ended 11/30/1995....... 9.53 0.40 0.99 1.39 (0.40) $(0.00)# $ (0.01)
Year ended 11/30/1994....... 10.46 0.38 (0.88) (0.50) (0.38) -- (0.05)
Period ended 11/30/1993**... 9.99 0.35 0.47 0.82 (0.35) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.36 $ 0.21 $ 0.02 $ 0.23 $(0.21) -- --
Period ended
03/31/1996(b)............. 10.51 0.14 (0.15) (0.01) (0.14) -- --
Year ended 11/30/1995....... 9.53 0.40 0.99 1.39 (0.40) $(0.00)# $ (0.01)
Year ended 11/30/1994....... 10.46 0.39 (0.88) (0.49) (0.39) -- (0.05)
Period ended 11/30/1993**... 10.31 0.18 0.15 0.33 (0.18) -- --
</TABLE>
- ---------------
* Nations Maryland Municipal Bond Fund's Primary A, Investor A, Investor C and
Investor N Shares commenced operations on September 20, 1994, November 4,
1993, November 3, 1994 and October 21, 1993, respectively.
** Nations North Carolina Intermediate Municipal Bond Fund's Primary A,
Investor A, Investor C and Investor N Shares commenced operations on
December 11, 1992, December 14, 1992, December 16, 1992 and June 7, 1993,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 94
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING
DIVIDENDS VALUE END OF EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS MARYLAND MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.23) $ 9.44 3.02% $ 3,653 0.60%+(a)
Period ended
03/31/1996(b).......................... (0.15) 9.39 (0.95) 2,788 0.60+
Year ended 11/30/1995.................... (0.48) 9.63 21.23 2,595 0.40
Period ended 11/30/1994*................. (0.11) 8.37 (4.89) 39 0.21+(a)
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.22) $ 9.44 2.91% $ 1,520 0.80%+(a)
Period ended
03/31/1996(b).......................... (0.14) 9.39 (1.01) 1,086 0.80+
Year ended 11/30/1995.................... (0.46) 9.63 20.99 1,031 0.60
Year ended 11/30/1994.................... (0.49) 8.37 (9.59) 9 0.39(a)
Period ended 11/30/1993*................. (0.03) 9.77 0.05 6 0.13+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.21) $ 9.44 2.78% $ 2 1.10%+(a)
Period ended
03/31/1996(b).......................... (0.13) 9.39 (1.13) 2 1.16+
Year ended 11/30/1995.................... (0.41) 9.63 20.29 2 1.15
Period ended 11/30/1994*................. (0.03) 8.37 (0.45) 2 0.96+(a)
INVESTOR N SHARES
Six Months Ended 09/30/1996
(unaudited)............................ $ (0.19) $ 9.44 2.63% $ 8,774 1.35%+(a)
Period ended
03/31/1996(b).......................... (0.13) 9.39 (1.19) 9,662 1.35+
Year ended 11/30/1995.................... (0.41) 9.63 20.33 10,002 1.15
Year ended 11/30/1994.................... (0.44) 8.37 (10.11) 4,819 0.96(a)
Period ended 11/30/1993*................. (0.04) 9.77 (1.94) 3,048 0.73+
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.24) $ 10.38 2.50% $ 24,397 0.50%+(a)
Period ended
03/31/1996(b).......................... (0.16) 10.36 0.05 21,161 0.50+
Year ended 11/30/1995.................... (0.46) 10.51 15.41 20,916 0.57(a)
Year ended 11/30/1994.................... (0.49) 9.53 (4.34) 14,148 0.55(a)
Period ended 11/30/1993**................ (0.43) 10.46 9.03 11,814 0.42+
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.23) $ 10.38 2.40% $ 5,656 0.70%+(a)
Period ended
03/31/1996(b).......................... (0.15) 10.36 (0.01) 7,672 0.70+
Year ended 11/30/1995.................... (0.44) 10.51 15.18 8,525 0.77(a)
Year ended 11/30/1994.................... (0.47) 9.53 (4.51) 8,896 0.73(a)
Period ended 11/30/1993**................ (0.42) 10.46 8.76 13,749 0.57+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.21) $ 10.38 2.25% $ 1,406 1.00%+(a)
Period ended
03/31/1996(b).......................... (0.14) 10.36 (0.12) 1,379 1.00+
Year ended 11/30/1995.................... (0.41) 10.51 14.84 1,366 1.07(a)
Year ended 11/30/1994.................... (0.43) 9.53 (4.89) 1,486 1.13(a)
Period ended 11/30/1993**................ (0.35) 10.46 8.26 1,592 1.17+
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............................ $ (0.21) $ 10.38 2.25% $ 7,206 1.00%+(a)
Period ended
03/31/1996(b).......................... (0.14) 10.36 (0.12) 8,102 1.00+
Year ended 11/30/1995.................... (0.41) 10.51 14.84 7,848 1.07(a)
Year ended 11/30/1994.................... (0.44) 9.53 (4.82) 5,706 1.05(a)
Period ended 11/30/1993**................ (0.18) 10.46 3.23 3,822 0.92+
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------------
RATIO OF RATIO OF
NET INVESTMENT OPERATING
INCOME TO PORTFOLIO EXPENSES TO NET INVESTMEMT
AVERAGE NET TURNOVER AVERAGE NET INCOME
ASSETS RATE ASSETS PER SHARE
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS MARYLAND MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.90%+ 12% 1.10%+ $ 0.21
Period ended
03/31/1996(b).......................... 4.72+ 7 1.23+ 0.13
Year ended 11/30/1995.................... 5.14 11 1.26 0.40
Period ended 11/30/1994*................. 5.48+ 39 1.30+ 0.09
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.70%+ 12% 1.30%+ $ 0.20
Period ended
03/31/1996(b).......................... 4.52+ 7 1.43+ 0.12
Year ended 11/30/1995.................... 4.94 11 1.46 0.38
Year ended 11/30/1994.................... 5.30 39 1.48 0.41
Period ended 11/30/1993*................. 3.97+ 1 1.76+ 0.02
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.40%+ 12% 1.60%+ $ 0.19
Period ended
03/31/1996(b).......................... 4.16+ 7 1.79+ 0.11
Year ended 11/30/1995.................... 4.39 11 2.01 0.33
Period ended 11/30/1994*................. 4.73+ 39 2.05+ 0.02
INVESTOR N SHARES
Six Months Ended 09/30/1996
(unaudited)............................ 4.15%+ 12% 1.85%+ $ 0.17
Period ended
03/31/1996(b).......................... 3.97+ 7 1.98+ 0.11
Year ended 11/30/1995.................... 4.39 11 2.01 0.33
Year ended 11/30/1994.................... 4.73 39 2.05 0.35
Period ended 11/30/1993*.... 3.37+ 1 2.36+ 0.02
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.56%+ 14% 0.81%+ $ 0.22
Period ended
03/31/1996(b).......................... 4.47+ 3 0.87+ 0.15
Year ended 11/30/1995.................... 4.47 57 0.84 0.43
Year ended 11/30/1994.................... 4.38 37 0.82 0.42
Period ended 11/30/1993**................ 4.23+ 29 0.85+ 0.39
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.36%+ 14% 1.01%+ $ 0.21
Period ended
03/31/1996(b).......................... 4.27+ 3 1.07+ 0.14
Year ended 11/30/1995.................... 4.27 57 1.04 0.41
Year ended 11/30/1994.................... 4.20 37 1.00 0.40
Period ended 11/30/1993**................ 4.08+ 29 1.00+ 0.38
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.06%+ 14% 1.31%+ $ 0.19
Period ended
03/31/1996(b).......................... 3.97+ 3 1.37+ 0.13
Year ended 11/30/1995.................... 3.97 57 1.34 0.38
Year ended 11/30/1994.................... 3.80 37 1.40 0.36
Period ended 11/30/1993**................ 3.48+ 29 1.60+ 0.30
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............................ 4.06%+ 14% 1.31%+ $ 0.19
Period ended
03/31/1996(b).......................... 3.97+ 3 1.37+ 0.13
Year ended 11/30/1995.................... 3.97 57 1.34 0.38
Year ended 11/30/1994.................... 3.88 37 1.32 0.37
Period ended 11/30/1993**................ 3.73+ 29 1.35+ 0.17
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 95
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.24 $ 0.04 $ 0.28 $(0.24) -- --
Period ended
03/31/1996(b)............. 9.73 0.16 (0.24) (0.08) (0.16) -- --
Year ended 11/30/1995....... 8.36 0.50 1.37 1.87 (0.50) -- --
Period ended 11/30/1994*.... 10.06 0.45 (1.70) (1.25) (0.45) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.23 $ 0.04 $ 0.27 $(0.23) -- --
Period ended
03/31/1996(b)............. 9.73 0.15 (0.24) (0.09) (0.15) -- --
Year ended 11/30/1995....... 8.36 0.49 1.37 1.86 (0.49) -- --
Year ended 11/30/1994....... 9.85 0.50 (1.49) (0.99) (0.50) -- --
Period ended 11/30/1993*.... 9.97 0.04 (0.12) (0.08) (0.04) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.21 $ 0.04 $ 0.25 $(0.21) -- --
Period ended
03/31/1996(b)............. 9.73 0.14 (0.24) (0.10) (0.14) -- --
Year ended 11/30/1995....... 8.36 0.43 1.37 1.80 (0.43) -- --
Period ended 11/30/1994*.... 8.45 0.03 (0.09) (0.06) (0.03) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.20 $ 0.04 $ 0.24 $(0.20) -- --
Period ended
03/31/1996(b)............. 9.73 0.13 (0.24) (0.11) (0.13) -- --
Year ended 11/30/1995....... 8.36 0.43 1.37 1.80 (0.43) -- --
Year ended 11/30/1994....... 9.85 0.45 (1.49) (1.04) (0.45) -- --
Period ended 11/30/1993*.... 10.00 0.04 (0.15) (0.11) (0.04) -- --
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.52 $ 0.25 $ 0.01 $ 0.26 $(0.25) -- --
Period ended
03/31/1996(b)............. 10.69 0.17 (0.17) 0.00 (0.17) -- --
Year ended 11/30/1995....... 9.76 0.51 0.93 1.44 (0.51) -- --
Year ended 11/30/1994....... 10.61 0.50 (0.84) (0.34) (0.50) $(0.00)# $ (0.01)
Year ended 11/30/1993....... 10.18 0.50 0.43 0.93 (0.50) -- --
Period ended 11/30/1992**... 10.00 0.47 0.18 0.65 (0.47) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.52 $ 0.24 $ 0.01 $ 0.25 $(0.24) -- --
Period ended
03/31/1996(b)............. 10.69 0.16 (0.17) (0.01) (0.16) -- --
Year ended 11/30/1995....... 9.76 0.49 0.93 1.42 (0.49) -- --
Year ended 11/30/1994....... 10.61 0.48 (0.84) (0.36) (0.48) $(0.00)# $ (0.01)
Year ended 11/30/1993....... 10.18 0.48 0.43 0.91 (0.48) -- --
Period ended 11/30/1992**... 9.98 0.30 0.20 0.50 (0.30) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.52 $ 0.23 $ 0.01 $ 0.24 $(0.23) -- --
Period ended
03/31/1996(b)............. 10.69 0.15 (0.17) (0.02) (0.15) -- --
Year ended 11/30/1995....... 9.76 0.46 0.93 1.39 (0.46) -- --
Year ended 11/30/1994....... 10.61 0.44 (0.84) (0.40) (0.44) $(0.00)# $ (0.01)
Year ended 11/30/1993....... 10.18 0.42 0.43 0.85 (0.42) -- --
Period ended 11/30/1992**... 10.05 0.20 0.13 0.33 (0.20) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.52 $ 0.23 $ 0.01 $ 0.24 $(0.23) -- --
Period ended
03/31/1996(b)............. 10.69 0.15 (0.17) (0.02) (0.15) -- --
Year ended 11/30/1995....... 9.76 0.46 0.93 1.39 (0.46) -- --
Year ended 11/30/1994....... 10.61 0.45 (0.84) (0.39) (0.45) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 10.47 0.20 0.14 0.34 (0.20) -- --
</TABLE>
- ---------------
* Nations North Carolina Municipal Bond Fund's Primary A, Investor A, Investor
C and Investor N Shares commenced operations on January 11, 1994, November
1, 1993, November 3, 1994, and October 21, 1993, respectively.
** Nations South Carolina Intermediate Municipal Bond Fund's Primary A,
Investor A, Investor C and Investor N Shares commenced operations on January
6, 1992, May 5, 1992, June 17, 1992 and June 8, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.01 per share.
## Amount represents less than 0.01%.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 96
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING
DIVIDENDS VALUE END OF EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.24) $ 9.53 2.95% $ 2,308 0.60%+(a)
Period ended
03/31/1996(b)................................ (0.16) 9.49 (0.87) 1,593 0.60+
Year ended 11/30/1995.......................... (0.50) 9.73 22.87 1,293 0.38(a)
Period ended 11/30/1994*....................... (0.45) 8.36 (12.65) 531 0.21+(a)
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.23) $ 9.53 2.85% $ 529 0.80%+(a)
Period ended
03/31/1996(b)................................ (0.15) 9.49 (0.94) 448 0.80+
Year ended 11/30/1995.......................... (0.49) 9.73 22.63 347 0.58(a)
Year ended 11/30/1994.......................... (0.50) 8.36 (10.41) 1,161 0.39(a)
Period ended 11/30/1993*....................... (0.04) 9.85 (0.80) 1,085 0.09+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.21) $ 9.53 2.70% $ 18 1.10%+(a)
Period ended
03/31/1996(b)................................ (0.14) 9.49 (1.04) 17 1.14+
Year ended 11/30/1995.......................... (0.43) 9.73 21.93 2 1.13(a)
Period ended 11/30/1994*....................... (0.03) 8.36 (0.67) 2 0.96+(a)
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.20) $ 9.53 2.57% $ 26,203 1.35%+(a)
Period ended
03/31/1996(b)................................ (0.13) 9.49 (1.12) 28,298 1.35+
Year ended 11/30/1995.......................... (0.43) 9.73 21.96 30,048 1.13(a)
Year ended 11/30/1994.......................... (0.45) 8.36 (10.92) 23,659 0.96(a)
Period ended 11/30/1993*.... (0.04) 9.85 (1.11) 11,395 0.69+
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.25) $ 10.53 2.55% $ 44,858 0.50%+
Period ended
03/31/1996(b)................................ (0.17) 10.52 0.00## 41,817 0.50+(a)
Year ended 11/30/1995.......................... (0.51) 10.69 15.02 45,255 0.55(a)
Year ended 11/30/1994.......................... (0.51) 9.76 (3.37) 49,030 0.54(a)
Year ended 11/30/1993.......................... (0.50) 10.61 9.32 56,995 0.45
Period ended 11/30/1992**...................... (0.47) 10.18 6.62+++ 39,535 0.20+
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.24) $ 10.53 2.45% $ 13,742 0.70%+
Period ended
03/31/1996(b)................................ (0.16) 10.52 (0.07) 14,288 0.70+(a)
Year ended 11/30/1995.......................... (0.49) 10.69 14.79 14,452 0.75(a)
Year ended 11/30/1994.......................... (0.49) 9.76 (3.54) 16,378 0.72(a)
Year ended 11/30/1993.......................... (0.48) 10.61 9.16 20,024 0.60
Period ended 11/30/1992**...................... (0.30) 10.18 5.03+++ 7,414 0.33+
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.23) $ 10.53 2.30% $ 5,354 1.00%+
Period ended
03/31/1996(b)................................ (0.15) 10.52 (0.17) 5,409 1.00+(a)
Year ended 11/30/1995.......................... (0.46) 10.69 14.45 5,527 1.05(a)
Year ended 11/30/1994.......................... (0.45) 9.76 (3.94) 6,167 1.12(a)
Year ended 11/30/1993.......................... (0.42) 10.61 8.51 8,499 1.20
Period ended 11/30/1992**...................... (0.20) 10.18 3.27+++ 4,436 0.88+
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited).................................. $ (0.23) $ 10.53 2.30% $ 6,928 1.00%+
Period ended
03/31/1996(b)................................ (0.15) 10.52 (0.17) 6,968 1.00+(a)
Year ended 11/30/1995.......................... (0.46) 10.69 14.45 6,457 1.05(a)
Year ended 11/30/1994.......................... (0.46) 9.76 (3.85) 5,740 1.04(a)
Period ended 11/30/1993**...................... (0.20) 10.61 3.23 4,057 0.95+
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------------
RATIO OF RATIO OF
NET INVESTMENT OPERATING
INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
AVERAGE NET TURNOVER AVERAGE NET INCOME
ASSETS RATE ASSETS PER SHARE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.98%+ 16% 0.94%+ $ 0.22
Period ended
03/31/1996(b).............................. 4.86+ 22 0.99+ 0.15
Year ended 11/30/1995........................ 5.43 40 0.96 0.45
Period ended 11/30/1994*..................... 5.53+ 29 0.92+ 0.40
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.78%+ 16% 1.14%+ $ 0.21
Period ended
03/31/1996(b).............................. 4.66+ 22 1.19+ 0.14
Year ended 11/30/1995........................ 5.23 40 1.16 0.44
Year ended 11/30/1994........................ 5.35 29 1.10 0.43
Period ended 11/30/1993*..................... 3.97+ 10 1.21+ 0.03
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.48%+ 16% 1.44%+ $ 0.19
Period ended
03/31/1996(b).............................. 4.32+ 22 1.53+ 0.13
Year ended 11/30/1995........................ 4.68 40 1.71 0.38
Period ended 11/30/1994*..................... 4.78+ 29 1.67+ 0.03
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.23%+ 16% 1.69%+ $ 0.18
Period ended
03/31/1996(b).............................. 4.11+ 22 1.74+ 0.12
Year ended 11/30/1995........................ 4.68 40 1.71 0.38
Year ended 11/30/1994........................ 4.78 29 1.67 0.38
Period ended 11/30/1993*..................... 3.37+ 10 1.81+ 0.03
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.85%+ 5% 0.78%+ $ 0.24
Period ended
03/31/1996(b).............................. 4.81+ 6 0.82+ 0.16
Year ended 11/30/1995........................ 4.92 11 0.75 0.49
Year ended 11/30/1994........................ 4.82 30 0.75 0.48
Year ended 11/30/1993........................ 4.68 11 0.75 0.47
Period ended 11/30/1992**.................... 4.11+ 7 0.74+ 0.42
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.65%+ 5% 0.98%+ $ 0.23
Period ended
03/31/1996(b).............................. 4.61+ 6 1.02+ 0.15
Year ended 11/30/1995........................ 4.72 11 0.95 0.47
Year ended 11/30/1994........................ 4.64 30 0.93 0.46
Year ended 11/30/1993........................ 4.53 11 0.90 0.45
Period ended 11/30/1992**.................... 4.83+ 7 0.85+ 0.27
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.35%+ 5% 1.28%+ $ 0.22
Period ended
03/31/1996(b).............................. 4.31+ 6 1.32+ 0.14
Year ended 11/30/1995........................ 4.42 11 1.25 0.44
Year ended 11/30/1994........................ 4.24 30 1.33 0.42
Year ended 11/30/1993........................ 3.93 11 1.50 0.39
Period ended 11/30/1992**.................... 4.10+ 7 1.48+ 0.17
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)................................ 4.35%+ 5% 1.28%+ $ 0.22
Period ended
03/31/1996(b).............................. 4.31+ 6 1.32+ 0.14
Year ended 11/30/1995........................ 4.42 11 1.25 0.44
Year ended 11/30/1994........................ 4.32 30 1.25 0.43
Period ended 11/30/1993**.................... 4.18+ 11 1.25+ 0.19
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 97
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.77 $ 0.25 $ 0.07 $ 0.32 $(0.25) -- --
Period ended
03/31/1996(b)............. 9.99 0.17 (0.22) (0.05) (0.17) -- --
Year ended 11/30/1995....... 8.65 0.52 1.34 1.86 (0.52) -- --
Period ended 11/30/1994*.... 10.02 0.48 (1.37) (0.89) (0.48) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.77 $ 0.24 $ 0.07 $ 0.31 $(0.24) -- --
Period ended
03/31/1996(b)............. 9.99 0.16 (0.22) (0.06) (0.16) -- --
Year ended 11/30/1995....... 8.65 0.50 1.34 1.84 (0.50) -- --
Year ended 11/30/1994....... 9.86 0.50 (1.21) (0.71) (0.50) -- --
Period ended 11/30/1993*.... 9.87 0.03 (0.01) 0.02 (0.03) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.77 $ 0.22 $ 0.07 $ 0.29 $(0.22) -- --
Period ended
03/31/1996(b)............. 9.99 0.15 (0.22) (0.07) (0.15) -- --
Year ended 11/30/1995....... 8.65 0.45 1.34 1.79 (0.45) -- --
Period ended 11/30/1994*.... 8.73 0.03 (0.08) (0.05) (0.03) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.77 $ 0.21 $ 0.07 $ 0.28 $(0.21) -- --
Period ended
03/31/1996(b)............. 9.99 0.14 (0.22) (0.08) (0.14) -- --
Year ended 11/30/1995....... 8.65 0.45 1.34 1.79 (0.45) -- --
Year ended 11/30/1994....... 9.86 0.45 (1.21) (0.76) (0.45) -- --
Period ended 11/30/1993*.... 10.00 0.04 (0.14) (0.10) (0.04) -- --
NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.09 $ 0.23 $ 0.00# $ 0.23 $(0.23) -- --
Period ended
03/31/1996(b)............. 10.23 0.15 (0.14) 0.01 (0.15) -- --
Year ended 11/30/1995....... 9.30 0.46 0.93 1.39 (0.46) -- --
Year ended 11/30/1994....... 10.18 0.45 (0.87) (0.42) (0.45) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 10.06 0.29 0.12 0.41 (0.29) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.09 $ 0.22 $ 0.00# $ 0.22 $(0.22) -- --
Period ended
03/31/1996(b)............. 10.23 0.15 (0.14) 0.01 (0.15) -- --
Year ended 11/30/1995....... 9.30 0.44 0.93 1.37 (0.44) -- --
Year ended 11/30/1994....... 10.18 0.43 (0.87) (0.44) (0.43) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 10.00 0.29 0.18 0.47 (0.29) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.09 $ 0.20 $ 0.00# $ 0.20 $(0.20) -- --
Period ended
03/31/1996(b)............. 10.23 0.14 (0.14) 0.00 (0.14) -- --
Year ended 11/30/1995....... 9.30 0.41 0.93 1.34 (0.41) -- --
Period ended 11/30/1994**... 9.38 0.03 (0.08) (0.05) (0.03) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.09 $ 0.20 $ 0.00# $ 0.20 $(0.20) -- --
Period ended
03/31/1996(b)............. 10.23 0.14 (0.14) 0.00 (0.14) -- --
Year ended 11/30/1995....... 9.30 0.41 0.93 1.34 (0.41) -- --
Year ended 11/30/1994....... 10.18 0.40 (0.87) (0.47) (0.40) $(0.00)# $ (0.01)
Period ended 11/30/1993**... 10.03 0.17 0.15 0.32 (0.17) -- --
</TABLE>
- ---------------
* Nations South Carolina Municipal Bond Fund's Primary A, Investor A, Investor
C and Investor N Shares commenced operations on December 27, 1993, November
8, 1993, November 3, 1994 and October 21, 1993, respectively.
** Nations Tennessee Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor C and Investor N Shares commenced operations on April 13, 1993,
April 2, 1993, November 3, 1994 and June 10, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 98
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHATE OUTSTANDING THROUGHOUT EACH PERIOD.
RATIO OF
OPERATING
RATIO OF EXPENSES TO
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET
DIVIDENDS VALUE END OF EXPENSES TO ASSETS
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.25) $ 9.84 3.29% $ 3,832 0.60%+ --
Period ended 03/31/1996(b)................. (0.17) 9.77 (0.57) 2,058 0.60+(a) --
Year ended 11/30/1995...................... (0.52) 9.99 21.99 1,782 0.40(a) --
Period ended 11/30/1994*................... (0.48) 8.65 (9.12) 400 0.21+(a) --
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.24) $ 9.84 3.19% $ 979 0.80%+ --
Period ended 03/31/1996(b)................. (0.16) 9.77 (0.64) 1,219 0.80+(a) --
Year ended 11/30/1995...................... (0.50) 9.99 21.74 1,238 0.60(a) --
Year ended 11/30/1994...................... (0.50) 8.65 (7.45) 140 0.39(a) --
Period ended 11/30/1993*................... (0.03) 9.86 0.21 14 0.10+ --
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.22) $ 9.84 3.04% $ 248 1.10%+ --
Period ended 03/31/1996(b)................. (0.15) 9.77 (0.76) 264 1.17+(a) --
Year ended 11/30/1995...................... (0.45) 9.99 21.01 20 1.15(a) --
Period ended 11/30/1994*................... (0.03) 8.65 (0.52) 2 0.96+(a) --
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.21) $ 9.84 2.91% $ 12,966 1.35%+ --
Period ended 03/31/1996(b)................. (0.14) 9.77 (0.82) 12,991 1.35+(a) --
Year eded 11/30/1995....................... (0.45) 9.99 21.08 12,670 1.15(a) --
Year ended 11/30/1994...................... (0.45) 8.65 (7.97) 8,263 0.96(a) --
Period ended 11/30/1993*................... (0.04) 9.86 (1.00) 4,048 0.70+ --
NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.23) $ 10.09 2.30% $ 8,520 0.50%+ (a)
Period ended 03/31/1996(b)................. (0.15) 10.09 0.12 8,408 0.50+ --
Year ended 11/30/1995...................... (0.46) 10.23 15.22 7,160 0.57 (a)
Year ended 11/30/1994...................... (0.46) 9.30 (4.24) 4,116 0.52 0.53%
Period ended 11/30/1993**.................. (0.29) 10.18 4.09 2,123 0.27+ --
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.22) $ 10.09 2.19% $ 6,874 0.70%+ (a)
Period ended 03/31/1996(b)................. (0.15) 10.09 0.06 7,439 0.70+ --
Year ended 11/30/1995...................... (0.44) 10.23 15.00 7,573 0.77 (a)
Year ended 11/30/1994...................... (0.44) 9.30 (4.41) 7,831 0.70 0.71%
Period ended 11/30/1993**.................. (0.29) 10.18 4.68 15,573 0.42+ --
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.20) $ 10.09 2.07% $ 2 1.00%+ (a)
Period ended 03/31/1996(b)................. (0.14) 10.09 (0.02) 2 1.00+ --
Year ended 11/30/1995...................... (0.41) 10.23 14.62 2 1.07 (a)
Period ended 11/30/1994**.................. (0.03) 9.30 (0.53) 2 1.02+ 1.03%+
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited).... $ (0.20) $ 10.09 2.04% $ 3,301 1.00%+ (a)
Period ended 03/31/1996(b)................. (0.14) 10.09 (0.04) 3,528 1.00+ --
Year ended 11/30/1995...................... (0.41) 10.23 14.65 3,573 1.07 (a)
Year ended 11/30/1994...................... (0.41) 9.30 (4.72) 3,368 1.02 1.03%
Period ended 11/30/1993**.................. (0.17) 10.18 3.32 2,210 0.77+ --
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF
NET INVESTMENT OPERATING
INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
AVERAGE NET TURNOVER AVERAGE NET INCOME
ASSETS RATE ASSETS PER SHARE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited).... 5.05%+ 6% 0.99%+ $ 0.23
Period ended 03/31/1996(b)................. 4.96+ 20 1.13+ 0.15
Year ended 11/30/1995...................... 5.44 13 1.08 0.46
Period ended 11/30/1994*................... 5.48+ 14 1.12+ 0.41
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited).... 4.85%+ 6% 1.19%+ $ 0.22
Period ended 03/31/1996(b)................. 4.76+ 20 1.33+ 0.14
Year ended 11/30/1995...................... 5.24 13 1.28 0.44
Year ended 11/30/1994...................... 5.30 14 1.30 0.42
Period ended 11/30/1993*................... 4.16+ 8 1.63+ 0.02
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited).... 4.55%+ 6% 1.49%+ $ 0.20
Period ended 03/31/1996(b)................. 4.39+ 20 1.70+ 0.13
Year ended 11/30/1995...................... 4.69 13 1.83 0.39
Period ended 11/30/1994*................... 4.73+ 14 1.87+ 0.03
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited).... 4.30%+ 6% 1.74%+ $ 0.19
Period ended 03/31/1996(b)................. 4.21+ 20 1.88+ 0.12
Year eded 11/30/1995....................... 4.69 13 1.83 0.39
Year ended 11/30/1994...................... 4.73 14 1.87 0.37
Period ended 11/30/1993*................... 3.56+ 8 2.23+ 0.02
NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996 (unaudited).... 4.54%+ 16% 0.92%+ $ 0.21
Period ended 03/31/1996(b)................. 4.51+ 3 1.02+ 0.13
Year ended 11/30/1995...................... 4.65 34 0.92 0.43
Year ended 11/30/1994...................... 4.56 41 0.89 0.41
Period ended 11/30/1993**.................. 4.31+ 16 0.94+ 0.24
INVESTOR A SHARES
Six Months ended 09/30/1996 (unaudited).... 4.34%+ 16% 1.12%+ $ 0.20
Period ended 03/31/1996(b)................. 4.31+ 3 1.22+ 0.13
Year ended 11/30/1995...................... 4.45 34 1.12 0.41
Year ended 11/30/1994...................... 4.38 41 1.07 0.40
Period ended 11/30/1993**.................. 4.16+ 16 1.09+ 0.24
INVESTOR C SHARES
Six Months ended 09/30/1996 (unaudited).... 4.04%+ 16% 1.42%+ $ 0.18
Period ended 03/31/1996(b)................. 4.01+ 3 1.52+ 0.12
Year ended 11/30/1995...................... 4.15 34 1.42 0.38
Period ended 11/30/1994**.................. 4.06+ 41 1.39+ 0.02
INVESTOR N SHARES
Six Months ended 09/30/1996 (unaudited).... 4.04%+ 16% 1.42%+ $ 0.18
Period ended 03/31/1996(b)................. 4.01+ 3 1.52+ 0.12
Year ended 11/30/1995...................... 4.15 34 1.42 0.38
Year ended 11/30/1994...................... 4.06 41 1.39 0.37
Period ended 11/30/1993**.................. 3.81+ 16 1.44+ 0.14
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 99
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT NET INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME INCOME CAPITAL GAINS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS TENNESSEE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.68 $ 0.24 $ 0.04 $ 0.28 $(0.24) -- --
Period ended
03/31/1996(b).......... 9.87 0.16 (0.19) (0.03) (0.16) -- --
Year ended 11/30/1995.... 8.58 0.52 1.29 1.81 (0.52) -- --
Period ended
11/30/1994*............ 9.59 0.39 (1.01) (0.62) (0.39) -- --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.68 $ 0.23 $ 0.04 $ 0.27 $(0.23) -- --
Period ended
03/31/1996(b).......... 9.87 0.15 (0.19) (0.04) (0.15) -- --
Year ended 11/30/1995.... 8.58 0.50 1.29 1.79 (0.50) -- --
Year ended 11/30/1994.... 9.80 0.50 (1.22) (0.72) (0.50) -- --
Period ended
11/30/1993*............ 9.88 0.04 (0.08) (0.04) (0.04) -- --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.68 $ 0.21 $ 0.04 $ 0.25 $(0.21) -- --
Period ended
03/31/1996(b).......... 9.87 0.14 (0.19) (0.05) (0.14) -- --
Year ended 11/30/1995.... 8.58 0.45 1.29 1.74 (0.45) -- --
Period ended
11/30/1994*............ 8.62 0.03 (0.04) (0.01) (0.03) -- --
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 9.68 $ 0.20 $ 0.04 $ 0.24 $(0.20) -- --
Period ended
03/31/1996(b).......... 9.87 0.14 (0.19) (0.05) (0.14) -- --
Year ended 11/30/1995.... 8.58 0.45 1.29 1.74 (0.45) -- --
Year ended 11/30/1994.... 9.80 0.45 (1.22) (0.77) (0.45) -- --
Period ended
11/30/1993*............ 10.00 0.04 (0.20) (0.16) (0.04) -- --
NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.21 $ 0.23 $ 0.00# $ 0.23 $(0.23) -- --
Period ended
03/31/1996(b).......... 10.36 0.16 (0.15) 0.01 (0.16) -- --
Year ended 11/30/1995.... 9.53 0.46 0.83 1.29 (0.46) -- --
Year ended 11/30/1994.... 10.35 0.44 (0.79) (0.35) (0.44) $(0.00)# $ (0.03)
Period ended
11/30/1993**........... 10.00 0.41 0.35 0.76 (0.41) -- --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.21 $ 0.22 $ 0.00# $ 0.22 $(0.22) -- --
Period ended
03/31/1996(b).......... 10.36 0.15 (0.15) 0.00 (0.15) -- --
Year ended 11/30/1995.... 9.53 0.44 0.83 1.27 (0.44) -- --
Year ended 11/30/1994.... 10.35 0.42 (0.79) (0.37) (0.42) $(0.00)# $ (0.03)
Period ended
11/30/1993**........... 10.15 0.37 0.20 0.57 (0.37) -- --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.21 $ 0.21 $ 0.00# $ 0.21 $(0.21) -- --
Period ended
03/31/1996(b).......... 10.36 0.14 (0.15) (0.01) (0.14) -- --
Year ended 11/30/1995.... 9.53 0.41 0.83 1.24 (0.41) -- --
Period ended
11/30/1994**........... 9.55 0.03 (0.02) 0.01 (0.03) $(0.00)# --
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ $ 10.21 $ 0.21 $ 0.00# $ 0.21 $(0.21) -- --
Period ended
03/31/1996(b).......... 10.36 0.14 (0.15) (0.01) (0.14) -- --
Year ended 11/30/1995.... 9.53 0.41 0.83 1.24 (0.41) -- --
Year ended 11/30/1994.... 10.35 0.39 (0.79) (0.40) (0.39) $(0.00)# $ (0.03)
Period ended
11/30/1993**........... 10.25 0.17 0.10 0.27 (0.17) -- --
</TABLE>
- ---------------
* Nations Tennessee Municipal Bond Fund's Primary A, Investor A, Investor C
and Investor N Shares commenced operations on March 2, 1994, November 2,
1993, November 3, 1994 and October 21, 1993, respectively.
** Nations Texas Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor C and Investor N Shares commenced operations on January 12, 1993,
February 4, 1993, November 3, 1994 and June 22, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 100
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
RATIO OF
RATIO OF OPERATING
NET OPERATING EXPENSES TO
ASSETS EXPENSES AVERAGE NET
TOTAL NET ASSET END OF TO ASSETS
DIVIDENDS VALUE PERIOD AVERAGE INCLUDING
AND END OF TOTAL (IN NET INTEREST
DISTRIBUTIONS PERIOD RETURN++ 000'S) ASSETS EXPENSE
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS TENNESSEE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.24) $ 9.72 2.92% $ 1,420 0.60%+ (a)
Period ended
03/31/1996(b).......... (0.16) 9.68 (0.30) 975 0.60+ 0.61%+
Year ended 11/30/1995.... (0.52) 9.87 21.52 768 0.40 (a)
Period ended
11/30/1994*............ (0.39) 8.58 (6.66) 311 0.21+ (a)
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.23) $ 9.72 2.82% $ 998 0.80%+ (a)
Period ended
03/31/1996(b).......... (0.15) 9.68 (0.37) 973 0.80+ 0.81%+
Year ended 11/30/1995.... (0.50) 9.87 21.28 203 0.60 (a)
Year ended 11/30/1994.... (0.50) 8.58 (7.58) 43 0.39 (a)
Period ended
11/30/1993*............ (0.04) 9.80 (0.43) 34 0.17+ --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.21) $ 9.72 2.67% $ 38 1.10%+ (a)
Period ended
03/31/1996(b).......... (0.14) 9.68 (0.49) 37 1.18+ 1.18%+
Year ended 11/30/1995.... (0.45) 9.87 20.62 64 1.15 (a)
Period ended
11/30/1994*............ (0.03) 8.58 (0.07) 2 0.96+ (a)
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.20) $ 9.72 2.54% $ 5,839 1.35%+ (a)
Period ended
03/31/1996(b).......... (0.14) 9.68 (0.55) 6,761 1.35+ 1.36%+
Year ended 11/30/1995.... (0.45) 9.87 20.63 6,619 1.15 (a)
Year ended 11/30/1994.... (0.45) 8.58 (8.10) 5,504 0.96 (a)
Period ended
11/30/1993*............ (0.04) 9.80 (1.61) 3,284 0.77+ --
NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.23) $ 10.21 2.31% $28,813 0.50%+(a) --
Period ended
03/31/1996(b).......... (0.16) 10.21 0.05 27,176 0.50+ --
Year ended 11/30/1995.... (0.46) 10.36 13.83 26,382 0.57(a) --
Year ended 11/30/1994.... (0.47) 9.53 (3.48) 24,066 0.55(a) --
Period ended
11/30/1993**........... (0.41) 10.35 7.72 31,875 0.44+ --
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.22) $ 10.21 2.20% $ 956 0.70%+(a) --
Period ended
03/31/1996(b).......... (0.15) 10.21 (0.02) 801 0.70+ --
Year ended 11/30/1995.... (0.44) 10.36 13.60 806 0.77(a) --
Year ended 11/30/1994.... (0.45) 9.53 (3.66) 718 0.73(a) --
Period ended
11/30/1993**........... (0.37) 10.35 5.64 968 0.59+ --
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.21) $ 10.21 2.05% $ 581 1.00%+(a) --
Period ended
03/31/1996(b).......... (0.14) 10.21 (0.12) 569 1.00+ --
Year ended 11/30/1995.... (0.41) 10.36 13.27 570 1.07(a) --
Period ended
11/30/1994**........... (0.03) 9.53 0.08 2 1.05+(a) --
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ $ (0.21) $ 10.21 2.05% $ 2,312 1.00%+(a) --
Period ended
03/31/1996(b).......... (0.14) 10.21 (0.12) 2,845 1.00+ --
Year ended 11/30/1995.... (0.41) 10.36 13.27 3,136 1.07(a) --
Year ended 11/30/1994.... (0.42) 9.53 (3.96) 2,774 1.05(a) --
Period ended
11/30/1993**........... (0.17) 10.35 2.61 1,330 0.94+ --
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-----------------------------
RATIO OF RATIO OF
NET INVESTMENT OPERATING
INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
AVERAGE NET TURNOVER AVERAGE NET INCOME
ASSETS RATE ASSETS PER SHARE
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS TENNESSEE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.94%+ 13% 1.21%+ $ 0.21
Period ended
03/31/1996(b).......... 4.92+ 2 1.47+ 0.13
Year ended 11/30/1995.... 5.49 45 1.27 0.44
Period ended
11/30/1994*............ 5.56+ 38 1.20+ 0.32
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.74%+ 13% 1.41%+ $ 0.20
Period ended
03/31/1996(b).......... 4.72+ 2 1.67+ 0.12
Year ended 11/30/1995.... 5.29 45 1.47 0.42
Year ended 11/30/1994.... 5.38 38 1.38 0.42
Period ended
11/30/1993*............ 4.31+ 3 1.86+ 0.03
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.44%+ 13% 1.71%+ $ 0.18
Period ended
03/31/1996(b).......... 4.34+ 2 2.05+ 0.11
Year ended 11/30/1995.... 4.74 45 2.02 0.37
Period ended
11/30/1994*............ 4.81+ 38 1.95+ 0.02
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.19%+ 13% 1.96%+ $ 0.17
Period ended
03/31/1996(b).......... 4.17+ 2 2.22+ 0.11
Year ended 11/30/1995.... 4.74 45 2.02 0.37
Year ended 11/30/1994.... 4.81 38 1.95 0.37
Period ended
11/30/1993*............ 3.71+ 3 2.46+ 0.02
NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.56%+ 13% 0.82%+ $ 0.21
Period ended
03/31/1996(b).......... 4.52+ 11 0.89+ 0.15
Year ended 11/30/1995.... 4.62 64 0.83 0.44
Year ended 11/30/1994.... 4.40 61 0.78 0.42
Period ended
11/30/1993**........... 4.43+ 63 0.82+ 0.38
INVESTOR A SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.36%+ 13% 1.02%+ $ 0.20
Period ended
03/31/1996(b).......... 4.32+ 11 1.09+ 0.14
Year ended 11/30/1995.... 4.42 64 1.03 0.42
Year ended 11/30/1994.... 4.22 61 0.96 0.40
Period ended
11/30/1993**........... 4.28+ 63 0.97+ 0.34
INVESTOR C SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.06%+ 13% 1.32%+ $ 0.19
Period ended
03/31/1996(b).......... 4.02+ 11 1.39+ 0.13
Year ended 11/30/1995.... 4.12 64 1.33 0.39
Period ended
11/30/1994**........... 3.90+ 61 1.28+ 0.02
INVESTOR N SHARES
Six Months ended
09/30/1996
(unaudited)............ 4.06%+ 13% 1.32%+ $ 0.19
Period ended
03/31/1996(b).......... 4.02+ 11 1.39+ 0.13
Year ended 11/30/1995.... 4.12 64 1.33 0.39
Year ended 11/30/1994.... 3.90 61 1.28 0.37
Period ended
11/30/1993**........... 3.93+ 63 1.32+ 0.16
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 101
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
DISTRIBUTIONS
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS IN EXCESS OF
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET NET REALIZED
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT REALIZED CAPITAL
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS GAINS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS TEXAS MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.24 $ 0.05 $ 0.29 $(0.24) -- --
Period ended 03/31/1996
(b)....................... 9.70 0.16 (0.21) (0.05) (0.16) -- --
Year ended 11/30/1995....... 8.39 0.50 1.31 1.81 (0.50) -- --
Period ended 11/30/1994*.... 10.01 0.42 (1.62) (1.20) (0.42) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.23 $ 0.05 $ 0.28 $(0.23) -- --
Period ended 03/31/1996
(b)....................... 9.70 0.15 (0.21) (0.06) (0.15) -- --
Year ended 11/30/1995....... 8.39 0.49 1.31 1.80 (0.49) -- --
Period ended 11/30/1994*.... 9.92 0.47 (1.53) (1.06) (0.47) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.21 $ 0.05 $ 0.26 $(0.21) -- --
Period ended 03/31/1996
(b)....................... 9.70 0.14 (0.21) (0.07) (0.14) -- --
Year ended 11/30/1995....... 8.39 0.43 1.31 1.74 (0.43) -- --
Period ended 11/30/1994*.... 8.46 0.03 (0.07) (0.04) (0.03) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 9.49 $ 0.20 $ 0.05 $ 0.25 $(0.20) -- --
Period ended
03/31/1996(b)............. 9.70 0.13 (0.21) (0.08) (0.13) -- --
Year ended 11/30/1995....... 8.39 0.43 1.31 1.74 (0.43) -- --
Year ended 11/30/1994....... 9.78 0.44 (1.39) (0.95) (0.44) -- --
Period ended 11/30/1993*.... 10.00 0.04 (0.22) (0.18) (0.04) -- --
NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.69 $ 0.26 $(0.04) $ 0.22 $(0.26) -- --
Period ended 03/31/1996
(b)....................... 10.83 0.17 (0.14) 0.03 (0.17) -- --
Year ended 11/30/1995....... 9.94 0.51 0.89 1.40 (0.51) $ (0.00)# --
Year ended 11/30/1994....... 10.99 0.50 (0.96) (0.46) (0.50) (0.09) $(0.00)#
Year ended 11/30/1993....... 10.59 0.48 0.42 0.90 (0.48) (0.02) --
Year ended 11/30/1992....... 10.34 0.54 0.29 0.83 (0.54) (0.04) --
Year ended 11/30/1991....... 10.14 0.58 0.21 0.79 (0.58) (0.01) --
Year ended 11/30/1990....... 10.08 0.61 0.11 0.72 (0.66) -- --
Period ended 11/30/1989**... 10.00 0.12 0.03 0.15 (0.07) -- --
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.69 $ 0.25 $(0.04) $ 0.21 $(0.25) -- --
Period ended 03/31/1996
(b)....................... 10.83 0.16 (0.14) 0.02 (0.16) -- --
Year ended 11/30/1995....... 9.94 0.49 0.89 1.38 (0.49) $ (0.00)# --
Year ended 11/30/1994....... 10.99 0.48 (0.96) (0.48) (0.48) (0.09) $(0.00)#
Year ended 11/30/1993....... 10.59 0.51 0.42 0.93 (0.51) (0.02) --
Year ended 11/30/1992....... 10.34 0.54 0.29 0.83 (0.54) (0.04) --
Year ended 11/30/1991....... 10.14 0.58 0.21 0.79 (0.58) (0.01) --
Period ended 11/30/1990**... 10.08 0.61 0.11 0.72 (0.66) -- --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.69 $ 0.23 $(0.04) $ 0.19 $(0.23) -- --
Period ended 03/31/1996
(b)....................... 10.83 0.15 (0.14) 0.01 (0.15) -- --
Year ended 11/30/1995....... 9.94 0.46 0.89 1.35 (0.46) $ (0.00)# --
Year ended 11/30/1994....... 10.99 0.44 (0.96) (0.52) (0.44) (0.09) $(0.00)#
Year ended 11/30/1993....... 10.59 0.44 0.42 0.86 (0.44) (0.02) --
Period ended 11/30/1992**... 10.44 0.19 0.15 0.34 (0.19) -- --
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)............... $ 10.69 $ 0.23 $(0.04) $ 0.19 $(0.23) -- --
Period ended
03/31/1996(b)............. 10.83 0.15 (0.14) 0.01 (0.15) -- --
Year ended 11/30/1995....... 9.94 0.46 0.89 1.35 (0.46) $ (0.00)# --
Year ended 11/30/1994....... 10.99 0.45 (0.96) (0.51) (0.45) (0.09) $(0.00)#
Period ended 11/30/1993**... 10.83 0.21 0.16 0.37 (0.21) -- --
</TABLE>
- ---------------
* Nations Texas Municipal Bond Fund's Primary A, Investor A, Investor C and
Investor N Shares commenced operations on February 3, 1994, December 17,
1993, November 3, 1994, and October 21, 1993, respectively.
** Nations Virginia Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor C and Investor N Shares commenced operations on September 20, 1989,
December 5, 1989, June 17, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 102
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING
DIVIDENDS VALUE END OF EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TEXAS MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996(unaudited) $ (0.24) $ 9.54 3.07% $ 6,045 0.60%+(a)
Period ended 03/31/1996(b)........... (0.16) 9.49 (0.55) 5,138 0.60+
Year ended 11/30/1995................ (0.50) 9.70 22.09 4,613 0.39(a)
Period ended 11/30/1994*............. (0.42) 8.39 (12.21) 2,285 0.22+(a)
INVESTOR A SHARES
Six Months ended 09/30/1996(unaudited) $ (0.23) $ 9.54 2.96% $ 370 0.80%+(a)
Period ended 03/31/1996(b)........... (0.15) 9.49 (0.62) 317 0.80+
Year ended 11/30/1995................ (0.49) 9.70 21.85 351 0.59(a)
Period ended 11/30/1994*............. (0.47) 8.39 (10.98) 55 0.40+(a)
INVESTOR C SHARES
Six Months ended 09/30/1996(unaudited) $ (0.21) $ 9.54 2.81% $ 72 1.10%+(a)
Period ended 03/31/1996(b)........... (0.14) 9.49 (0.74) 70 1.16+
Year ended 11/30/1995................ (0.43) 9.70 21.15 70 1.14(a)
Period ended 11/30/1994*............. (0.03) 8.39 (0.43) 2 0.97+(a)
INVESTOR N SHARES
Six Months ended 09/30/1996(unaudited) $ (0.20) $ 9.54 2.68% $ 10,990 1.35%+(a)
Period ended 03/31/1996(b)........... (0.13) 9.49 (0.80) 11,838 1.35+
Year ended 11/30/1995................ (0.43) 9.70 21.19 12,587 1.14(a)
Year ended 11/30/1994................ (0.44) 8.39 (9.98) 10,812 0.97(a)
Period ended 11/30/1993*............. (0.04) 9.78 (1.82) 6,154 0.70+
NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996(unaudited) $ (0.26) $ 10.65 2.05% $144,800 0.50%+(a)
Period ended 03/31/1996(b)........... (0.17) 10.69 0.27 155,464 0.50+(a)
Year ended 11/30/1995................ (0.51) 10.83 14.39 157,252 0.56(a)
Year ended 11/30/1994................ (0.59) 9.94 (4.35) 167,405 0.61(a)
Year ended 11/30/1993................ (0.50) 10.99 9.08 193,084 0.57
Year ended 11/30/1992................ (0.58) 10.59 8.28+++ 157,773 0.56
Year ended 11/30/1991................ (0.59) 10.34 8.04+++ 119,757 0.45
Year ended 11/30/1990................ (0.66) 10.14 7.41+++ 75,962 0.26
Period ended 11/30/1989**............ (0.07) 10.08 1.46+++ 46,560 0.16+
INVESTOR A SHARES
Six Months ended 09/30/1996(unaudited) $ (0.25) $ 10.65 1.95% $ 60,444 0.70%+(a)
Period ended 03/31/1996(b)........... (0.16) 10.69 0.20 68,003 0.70+(a)
Year ended 11/30/1995................ (0.49) 10.83 14.16 73,253 0.76(a)
Year ended 11/30/1994................ (0.57) 9.94 (4.52) 79,412 0.79(a)
Year ended 11/30/1993................ (0.53) 10.99 8.91 103,689 0.72
Year ended 11/30/1992................ (0.58) 10.59 8.18+++ 76,650 0.65
Year ended 11/30/1991................ (0.59) 10.34 8.04+++ 44,540 0.45
Period ended 11/30/1990**............ (0.66) 10.14 7.41+++ 24,303 0.26+
INVESTOR C SHARES
Six Months ended 09/30/1996(unaudited) $ (0.23) $ 10.65 1.80% $ 6,730 1.00%+(a)
Period ended 03/31/1996(b)........... (0.15) 10.69 0.10 6,909 1.00+(a)
Year ended 11/30/1995................ (0.46) 10.83 13.82 7,152 1.06(a)
Year ended 11/30/1994................ (0.53) 9.94 (4.90) 8,372 1.19(a)
Year ended 11/30/1993................ (0.46) 10.99 8.25 11,176 1.32
Period ended 11/30/1992**............ (0.19) 10.59 3.36+++ 4,769 1.28+
INVESTOR N SHARES
Six Months ended 09/30/1996(unaudited) $ (0.23) $ 10.65 1.80% $ 11,382 1.00%+(a)
Period ended 03/31/1996(b)........... (0.15) 10.69 0.10 11,926 1.00+(a)
Year ended 11/30/1995................ (0.46) 10.83 13.82 12,163 1.06(a)
Year ended 11/30/1994................ (0.54) 9.94 (4.82) 9,690 1.11(a)
Period ended 11/30/1993**............ (0.21) 10.99 3.48 5,249 1.07+
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------------
RATIO OF RATIO OF
NET INVESTMENT OPERATING
INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
AVERAGE NET TURNOVER AVERAGE NET INCOME
ASSETS RATE ASSETS PER SHARE
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
NATIONS TEXAS MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996(unaudited) 4.99%+ 28% 1.01%+ $ 0.22
Period ended 03/31/1996(b)........... 4.92+ 6 1.11+ 0.14
Year ended 11/30/1995................ 5.45 50 1.05 0.44
Period ended 11/30/1994*............. 5.52+ 107 1.06+ 0.35
INVESTOR A SHARES
Six Months ended 09/30/1996(unaudited) 4.79%+ 28% 1.21%+ $ 0.21
Period ended 03/31/1996(b)........... 4.72+ 6 1.31+ 0.13
Year ended 11/30/1995................ 5.25 50 1.25 0.43
Period ended 11/30/1994*............. 5.34+ 107 1.24+ 0.39
INVESTOR C SHARES
Six Months ended 09/30/1996(unaudited) 4.49%+ 28% 1.51%+ $ 0.19
Period ended 03/31/1996(b)........... 4.36+ 6 1.67+ 0.12
Year ended 11/30/1995................ 4.70 50 1.80 0.37
Period ended 11/30/1994*............. 4.77+ 107 1.81+ 0.02
INVESTOR N SHARES
Six Months ended 09/30/1996(unaudited) 4.24%+ 28% 1.76%+ $ 0.18
Period ended 03/31/1996(b)........... 4.17+ 6 1.86+ 0.11
Year ended 11/30/1995................ 4.70 50 1.80 0.37
Period ended 11/30/1994.............. 4.77 107 1.81 0.37
Period ended 11/30/1993*............. 3.32+ 5 2.05+ 0.03
NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996(unaudited) 4.81%+ 11% 0.73%+ $ 0.24
Period ended 03/31/1996(b)........... 4.72+ 2 0.76+ 0.16
Year ended 11/30/1995................ 4.87 22 0.74 0.49
Year ended 11/30/1994................ 4.76 14 0.73 0.49
Year ended 11/30/1993................ 4.80 26 0.69 0.47
Year ended 11/30/1992................ 5.17 13 0.68 0.53
Year ended 11/30/1991................ 5.67 24 0.73 0.55
Year ended 11/30/1990................ 6.09 19 0.80 0.55
Period ended 11/30/1989**............ 6.09+ 12 0.81+ 0.08
INVESTOR A SHARES
Six Months ended 09/30/1996(unaudited) 4.61%+ 11% 0.93%+ $ 0.23
Period ended 03/31/1996(b)........... 4.52+ 2 0.96+ 0.15
Year ended 11/30/1995................ 4.67 22 0.94 0.47
Year ended 11/30/1994................ 4.58 14 0.91 0.47
Year ended 11/30/1993................ 4.65 26 0.84 0.49
Year ended 11/30/1992................ 5.04 13 0.97 0.50
Year ended 11/30/1991................ 5.67 24 0.73 0.55
Period ended 11/30/1990**............ 6.09+ 19 0.80+ 0.55
INVESTOR C SHARES
Six Months ended 09/30/1996(unaudited) 4.31%+ 11% 1.23%+ $ 0.21
Period ended 03/31/1996(b)........... 4.22+ 2 1.26+ 0.14
Year ended 11/30/1995................ 4.37 22 1.24 0.44
Year ended 11/30/1994................ 4.18 14 1.31 0.43
Year ended 11/30/1993................ 4.05 26 1.44 0.43
Period ended 11/30/1992**............ 3.99+ 13 2.80+ 0.12
INVESTOR N SHARES
Six Months ended 09/30/1996(unaudited) 4.31%+ 11% 1.23%+ $ 0.21
Period ended 03/31/1996(b)........... 4.22+ 2 1.26+ 0.14
Year ended 11/30/1995................ 4.37 22 1.24 0.44
Year ended 11/30/1994................ 4.26 14 1.23 0.43
Period ended 11/30/1993**............ 4.30+ 26 1.19+ 0.20
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 103
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS TOTAL NET ASSET
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT AND END OF
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME DISTRIBUTIONS PERIOD
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS VIRGINIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)................. $ 9.38 $ 0.24 $ 0.07 $ 0.31 $(0.24) $ (0.24) $9.45
Period ended 03/31/1996(b).... 9.62 0.16 (0.24) (0.08) (0.16) (0.16) 9.38
Year ended 11/30/1995......... 8.29 0.51 1.33 1.84 (0.51) (0.51) 9.62
Period ended 11/30/1994*...... 10.00 0.45 (1.71) (1.26) (0.45) (0.45) 8.29
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)................. $ 9.38 $ 0.23 $ 0.07 $ 0.30 $(0.23) $ (0.23) $9.45
Period ended 03/31/1996(b).... 9.62 0.16 (0.24) (0.08) (0.16) (0.16) 9.38
Year ended 11/30/1995......... 8.29 0.49 1.33 1.82 (0.49) (0.49) 9.62
Year ended 11/30/1994......... 9.77 0.49 (1.48) (0.99) (0.49) (0.49) 8.29
Period ended 11/30/1993*...... 9.84 0.03 (0.07) (0.04) (0.03) (0.03) 9.77
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)................. $ 9.38 $ 0.22 $ 0.07 $ 0.29 $(0.22) $ (0.22) $9.45
Period ended 03/31/1996(b).... 9.62 0.14 (0.24) (0.10) (0.14) (0.14) 9.38
Year ended 11/30/1995......... 8.29 0.44 1.33 1.77 (0.44) (0.44) 9.62
Period ended 11/30/1994*...... 8.38 0.03 (0.09) (0.06) (0.03) (0.03) 8.29
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)................. $ 9.38 $ 0.20 $ 0.07 $ 0.27 $(0.20) $ (0.20) $9.45
Period ended 03/31/1996(b).... 9.62 0.14 (0.24) (0.10) (0.14) (0.14) 9.38
Year ended 11/30/1995......... 8.29 0.44 1.33 1.77 (0.44) (0.44) 9.62
Year ended 11/30/1994......... 9.77 0.44 (1.48) (1.04) (0.44) (0.44) 8.29
Period ended 11/30/1993*...... 10.00 0.04 (0.23) (0.19) (0.04) (0.04) 9.77
</TABLE>
- ---------------
* Nations Virginia Municipal Bond Fund's Primary A, Investor A, Investor C
and Investor N Shares commenced operations on January 11, 1994, November 8,
1993, November 3, 1994, and October 21, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 104
NATIONS FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
RATIO OF
RATIO OF OPERATING
NET ASSETS OPERATING EXPENSES TO
END OF EXPENSES TO AVERAGE NET
TOTAL PERIOD AVERAGE NET ASSETS INCLUDING
RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE
-------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS VIRGINIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)................. 3.35% $ 4,336 0.60%+ (a)
Period ended 03/31/1996(b).... (0.84) 3,296 0.60+ 0.61%+
Year ended 11/30/1995......... 22.63 3,527 0.39 (a)
Period ended 11/30/1994*...... (12.86) 432 0.21+ (a)
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)................. 3.25% $ 704 0.80%+ (a)
Period ended 03/31/1996(b).... (0.91) 661 0.80+ 0.81%+
Year ended 11/30/1995......... 22.39 650 0.59 (a)
Year ended 11/30/1994......... (10.44) 168 0.39 (a)
Period ended 11/30/1993*...... (0.42) 25 0.10+ --
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)................. 3.09% $ 44 1.10%+ (a)
Period ended 03/31/1996(b).... (1.03) 43 1.16+ 1.17%+
Year ended 11/30/1995......... 21.71 34 1.14 (a)
Period ended 11/30/1994*...... (0.67) 2 0.96+ (a)
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)................. 2.97% $ 15,195 1.35%+ (a)
Period ended 03/31/1996(b) (1.09) 15,938 1.35+ 1.36%+
Year ended 11/30/1995......... 21.72 16,489 1.14 (a)
Year ended 11/30/1994......... (10.95) 12,738 0.96 (a)
Period ended 11/30/1993*...... (1.93) 6,580 0.70+ --
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENT
----------------------------
RATIO OF RATIO OF
NET INVESTMENT OPERATING NET
INCOME TO PORTFOLIO EXPENSES TO INVESTMENT
AVERAGE NET TURNOVER AVERAGE NET INCOME PER
ASSETS RATE ASSETS SHARE
----------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS VIRGINIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six Months ended 09/30/1996
(unaudited)................. 5.11%+ 27% 0.96%+ $ 0.22
Period ended 03/31/1996(b).... 5.06+ 8 1.07+ 0.14
Year ended 11/30/1995......... 5.51 16 1.04 0.46
Period ended 11/30/1994*...... 5.52+ 61 0.99+ 0.38
INVESTOR A SHARES
Six Months ended 09/30/1996
(unaudited)................. 4.91%+ 27% 1.16%+ $ 0.21
Period ended 03/31/1996(b).... 4.86+ 8 1.27+ 0.14
Year ended 11/30/1995......... 5.31 16 1.24 0.44
Year ended 11/30/1994......... 5.34 61 1.17 0.43
Period ended 11/30/1993*...... 3.88+ 0 1.30+ 0.02
INVESTOR C SHARES
Six Months ended 09/30/1996
(unaudited)................. 4.61%+ 27% 1.46%+ $ 0.20
Period ended 03/31/1996(b).... 4.50+ 8 1.63+ 0.12
Year ended 11/30/1995......... 4.76 16 1.79 0.39
Period ended 11/30/1994*...... 4.77+ 61 1.74+ 0.03
INVESTOR N SHARES
Six Months ended 09/30/1996
(unaudited)................. 4.36%+ 27% 1.71%+ $ 0.18
Period ended 03/31/1996(b) 4.31+ 8 1.82+ 0.12
Year ended 11/30/1995......... 4.76 16 1.79 0.39
Year ended 11/30/1994......... 4.77 61 1.74 0.37
Period ended 11/30/1993*...... 3.28+ 0 1.90+ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 105
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company. As of the date of this report, the Trust offers thirty-two separate
portfolios. The information presented in these financial statements pertains
only to the following funds: Nations Short-Term Municipal Income Fund, Nations
Intermediate Municipal Bond Fund, Nations Municipal Income Fund, Nations Florida
Intermediate Municipal Bond Fund, Nations Florida Municipal Bond Fund, Nations
Georgia Intermediate Municipal Bond Fund, Nations Georgia Municipal Bond Fund,
Nations Maryland Intermediate Municipal Bond Fund, Nations Maryland Municipal
Bond Fund, Nations North Carolina Intermediate Municipal Bond Fund, Nations
North Carolina Municipal Bond Fund, Nations South Carolina Intermediate
Municipal Bond Fund, Nations South Carolina Municipal Bond Fund, Nations
Tennessee Intermediate Municipal Bond Fund, Nations Tennessee Municipal Bond
Fund, Nations Texas Intermediate Municipal Bond Fund, Nations Texas Municipal
Bond Fund, Nations Virginia Intermediate Municipal Bond Fund and Nations
Virginia Municipal Bond Fund (each a "Fund" and collectively, the "Funds"). The
financial statements for the remaining funds of the Trust are presented under
separate cover. The Funds currently offer four classes of shares: Primary A
Shares, Investor A Shares, Investor C Shares and Investor N Shares. The Board of
Trustees has authorized the issuance of Primary B Shares for all Funds. As of
September 30, 1996, no Primary B Shares have been issued. Shareholders of a Fund
have equal voting rights on matters affecting all shareholders of the Fund. In
addition, each class of shares of a Fund has exclusive voting rights on matters
that relate solely to its class, and separate voting rights on matters in which
the interests of one class of shares differs 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 may 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: Investments in municipal bonds are valued by an
independent pricing service approved by the Board of Trustees. Valuations are
based upon a matrix system and/or appraisals provided by the pricing service
which takes into consideration such factors as yields, prices, maturities, sell
features and ratings on comparable securities. Certain securities may be valued
by one or more principal market makers. Restricted securities, securities for
which market quotations are not readily available, and other assets are valued
at fair market value under the supervision of the Board of Trustees. Short-term
investments that mature in 60 days or less are valued at amortized cost.
Certain states' municipal obligations may be obligations of issuers that rely in
whole or in part on state specific revenues, real property taxes and revenues
from health care institutions, as appropriate, or obligations secured by
mortgages on real property. Consequently, state law affecting these obligations
and the possible effects on these obligations of economic conditions in such
states must be considered.
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Realized gains and losses are computed on
the specific identification of the securities sold. Interest income, adjusted
for amortization of market discounts and premiums on investments and
amortization of original issue discounts on the effective yield method, is
earned from the settlement date and is recorded on an 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 its classes based
upon the relative net assets of each class of shares.
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 the settlement date. Each Fund instructs the custodian to segregate assets
with a current value at least equal to the amount of its when-issued purchase
commitments.
Dividends and Distributions to Shareholders: It is the policy of each Fund to
declare dividends daily from net investment income and pay such dividends
monthly. Each Fund will distribute net realized capital gains, unless offset by
any available capital loss carryforward, annually after the fiscal year in which
the capital gains were earned. Additional distributions of net investment income
and capital gains may be made at the discretion of the Board of Trustees in
order to avoid application of the 4% non-deductible Federal excise tax. Income
distributions and capital gain distributions on a Fund level are determined in
accordance with Federal income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to timing
differences and differing characterization of distributions made by the Fund as
a whole.
102
<PAGE> 106
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
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 are allocated to the relevant Funds
based upon relative net assets. Operating expenses directly attributable to a
Fund or class of shares are charged to such Fund's or class's operations.
Expenses of each Fund not directly attributable to the operations of any class
of shares are prorated among the classes based on the relative average net
assets of each class of shares.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
The Trust has entered into an investment advisory agreement ("Investment
Advisory Agreement") with NationsBanc Advisors, Inc. ("NBAI"), a wholly-owned
subsidiary of NationsBank, N.A. ("Nations Bank"), pursuant to which NBAI
provides investment advisory services to the Funds. Under the terms of this
Investment Advisory Agreement, NBAI is entitled to receive an advisory fee at
the following annual rates of the average daily net assets of each Fund:
<TABLE>
<CAPTION>
ANNUAL RATE
<S> <C>
----------
Nations Short-Term Municipal Income Fund, Nations Intermediate Municipal 0.50%
Bond Fund, Nations Florida Intermediate Municipal Bond Fund, Nations Georgia
Intermediate Municipal Bond Fund, Nations Maryland Intermediate Municipal
Bond Fund, Nations North Carolina Intermediate Municipal Bond Fund, Nations
South Carolina Intermediate Municipal Bond Fund, Nations Tennessee
Intermediate Municipal Bond Fund, Nations Texas Intermediate Municipal Bond
Fund and Nations Virginia Intermediate Municipal Bond Fund
Nations Municipal Income Fund, Nations Florida Municipal Bond Fund, Nations 0.60%
Georgia Municipal Bond Fund, Nations Maryland Municipal Bond Fund, Nations
North Carolina Municipal Bond Fund, Nations South Carolina Municipal Bond
Fund, Nations Tennessee Municipal Bond Fund, Nations Texas Municipal Bond
Fund and Nations Virginia Municipal Bond Fund
</TABLE>
The Trust has entered into a sub-advisory agreement ("Sub-Advisory Agreement")
with NBAI and TradeStreet Investment Associates, Inc. ("TradeStreet"), a
wholly-owned subsidiary of NationsBank. Under the terms of the Sub-Advisory
Agreement, TradeStreet is entitled to receive from NBAI a sub-advisory fee for
each Fund at the annual rate of 0.07% of such Fund's average daily net assets.
Stephens Inc. ("Stephens") serves as the administrator of the Trust pursuant to
an administration agreement ("Administration Agreement"). First Data Investor
Services Group, Inc. ("First Data"), a wholly-owned subsidiary of First Data
Corporation, serves as the co-administrator of the Trust pursuant to a
co-administration agreement ("Co-Administration Agreement"). Pursuant to the
Administration and Co-Administration Agreements, the administrator and the
co-administrator are entitled to receive a combined fee, computed daily and paid
monthly, at the annual rate of 0.10% of the average daily net assets of the
investment portfolios of the Trust and Nations Fund, Inc. and Nations Fund
Portfolios, Inc. (other registered open-end investment companies that are a part
of the Nations Fund Family) on a combined basis. NationsBank serves as the
sub-administrator of the Trust pursuant to a sub-administration agreement
("Sub-Administration Agreement") with Stephens. For the six months ended
September 30, 1996, Stephens earned $298,438 from the Funds for its
administration services, of which $50,228 was paid to NationsBank for its
services as sub-administrator.
103
<PAGE> 107
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
The investment adviser, sub-adviser, administrator, co-administrator and
custodian may, from time to time, reduce their fees payable by each Fund (either
voluntarily or pursuant to applicable state limitations). For the six months
ended September 30, 1996, the investment adviser and custodian voluntarily
waived fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED BY
----------------------
ADVISER CUSTODIAN
---------------------
<S> <C> <C>
Nations Short-Term Municipal Income Fund................................................... $142,668 $ 6,555
Nations Intermediate Municipal Bond Fund................................................... 137,843 --
Nations Municipal Income Fund.............................................................. 155,561 --
Nations Florida Intermediate Municipal Bond Fund........................................... 78,675 --
Nations Florida Municipal Bond Fund........................................................ 59,744 4,485
Nations Georgia Intermediate Municipal Bond Fund........................................... 83,582 --
Nations Georgia Municipal Bond Fund........................................................ 28,080 2,764
Nations Maryland Intermediate Municipal Bond Fund.......................................... 114,569 --
Nations Maryland Municipal Bond Fund....................................................... 31,330 2,520
Nations North Carolina Intermediate Municipal Bond Fund.................................... 60,679 --
Nations North Carolina Municipal Bond Fund................................................. 45,604 3,438
Nations South Carolina Intermediate Municipal Bond Fund.................................... 98,824 --
Nations South Carolina Municipal Bond Fund................................................. 31,391 2,596
Nations Tennessee Intermediate Municipal Bond Fund......................................... 39,721 --
Nations Tennessee Municipal Bond Fund...................................................... 22,944 1,981
Nations Texas Intermediate Municipal Bond Fund............................................. 52,894 --
Nations Texas Municipal Bond Fund.......................................................... 31,676 3,775
Nations Virginia Intermediate Municipal Bond Fund.......................................... 265,824 --
Nations Virginia Municipal Bond Fund....................................................... 32,561 3,322
</TABLE>
NationsBank of Texas, N.A. ("NationsBank of Texas") acts as the custodian for
the Funds and, for the six months ended September 30, 1996, earned $72,451
(excluding fee waivers) for providing such services. First Data serves as the
transfer agent for the Funds' shares. NationsBank of Texas acts as the
sub-transfer agent for the Primary Shares of the Funds and, for the six months
ended September 30, 1996, earned approximately $55,033 for providing such
services.
Stephens serves as distributor of the Funds' shares. For the six months ended
September 30, 1996, the Funds were informed that the distributor received
$370,877 in contingent deferred sales charges from Investor A, Investor C and
Investor N Shares of the Funds. A substantial portion of these fees are paid to
affiliates of NationsBank and NBAI.
No officer, director or employee of NBAI, TradeStreet, Stephens, First Data or
any affiliate thereof, receives any compensation from the Trust for serving as a
trustee or officer of the Trust. The Trust pays each trustee an annual fee of
$1,000 ($3,000 for the Chairman of the Board), plus $500 per Fund and an
additional $1,000 for each in-person board meeting, and $500 for each telephonic
board meeting attended. The Trust also reimburses expenses incurred by each
trustee in attending such meetings.
The Trust's eligible trustees may participate in a nonqualified deferred
compensation plan and retirement plan which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Funds' assets. Income earned on each
plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of Nations Treasury Fund, a fund of Nations Fund, Inc. The
expense for the deferred compensation plan is included in the "Trustees' Fees
and Expenses" line of the Statements of Operations.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust has adopted a shareholder servicing and distribution plan pursuant to
Rule 12b-1 under the 1940 Act for Investor A Shares of each Fund ("Investor A
Plan"); a shareholder servicing plan ("Servicing Plan") for Investor A Shares of
Nations Short-Term Municipal Income Fund, Investor C Shares and Investor N
Shares of each Fund; and a distribution plan ("Distribution Plan") pursuant to
Rule 12b-1 for Investor C Shares and Investor N Shares of each Fund. The
Investor A Plan permits the Funds to compensate (i) servicing agents for
services provided to their customers that own Investor A Shares and (ii)
Stephens for distribution-related expenses incurred in connection with Investor
A Shares. The Servicing Plan permits 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 Investor A Shares of Nations
Short-
104
<PAGE> 108
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
Term Municipal Income Fund, Investor C Shares and Investor N Shares,
respectively. The Distribution Plan permits the Funds to compensate or reimburse
Stephens for any activities or expenses primarily intended to result in the sale
of the Funds' Investor C Shares or Investor N 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
Investor A Shares, Investor C Shares and Investor N Shares, respectively, of
each Fund as accrued by each Fund.
For the six months ended September 30, 1996, the effective rates paid by the
Funds, as a percentage of average daily net assets, pursuant to the
aforementioned plans are as follows:
<TABLE>
<CAPTION>
INVESTOR A INVESTOR C INVESTOR C INVESTOR N INVESTOR N
INVESTOR SERVICING DISTRIBUTION SERVICING DISTRIBUTION SERVICING
FUND A PLAN PLAN PLAN PLAN PLAN PLAN
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------
Nations Short-Term Municipal Income Fund................ 0.20% -- 0.10% 0.25% 0.10% 0.25%
Nations Intermediate Municipal Bond Fund................ 0.20 N/A 0.25 0.25 0.25 0.25
Nations Municipal Income Fund........................... 0.20 N/A 0.25 0.25 0.50 0.25
Nations Florida Intermediate Municipal Bond Fund........ 0.20 N/A 0.25 0.25 0.25 0.25
Nations Florida Municipal Bond Fund..................... 0.20 N/A 0.25 0.25 0.50 0.25
Nations Georgia Intermediate Municipal Bond Fund........ 0.20 N/A 0.25 0.25 0.25 0.25
Nations Georgia Municipal Bond Fund..................... 0.20 N/A 0.25 0.25 0.50 0.25
Nations Maryland Intermediate Municipal Bond Fund....... 0.20 N/A 0.25 0.25 0.25 0.25
Nations Maryland Municipal Bond Fund.................... 0.20 N/A 0.25 0.25 0.50 0.25
Nations North Carolina Intermediate Municipal Bond
Fund.................................................. 0.20 N/A 0.25 0.25 0.25 0.25
Nations North Carolina Municipal Bond Fund.............. 0.20 N/A 0.25 0.25 0.50 0.25
Nations South Carolina Intermediate Municipal Bond
Fund.................................................. 0.20 N/A 0.25 0.25 0.25 0.25
Nations South Carolina Municipal Bond Fund.............. 0.20 N/A 0.25 0.25 0.50 0.25
Nations Tennessee Intermediate Municipal Bond Fund...... 0.20 N/A 0.25 0.25 0.25 0.25
Nations Tennessee Municipal Bond Fund................... 0.20 N/A 0.25 0.25 0.50 0.25
Nations Texas Intermediate Municipal Bond Fund.......... 0.20 N/A 0.25 0.25 0.25 0.25
Nations Texas Municipal Bond Fund....................... 0.20 N/A 0.25 0.25 0.50 0.25
Nations Virginia Intermediate Municipal Bond Fund....... 0.20 N/A 0.25 0.25 0.25 0.25
Nations Virginia Municipal Bond Fund.................... 0.20 N/A 0.25 0.25 0.50 0.25
</TABLE>
A substantial portion of the fees paid pursuant to the plans described above are
paid to affiliates of NationsBank and NBAI.
4. PURCHASES AND SALES OF SECURITIES.
The aggregate costs of purchases and proceeds from sales of securities,
excluding short-term investments, for the six months ended September 30, 1996
were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
---------------------------
Nations Short-Term Municipal Income Fund............................................ $26,497,819 $24,123,629
Nations Intermediate Municipal Bond Fund............................................ 23,808,294 13,643,928
Nations Municipal Income Fund....................................................... 6,879,178 18,413,638
Nations Florida Intermediate Municipal Bond Fund.................................... 5,726,565 4,728,887
Nations Florida Municipal Bond Fund................................................. 4,819,090 6,290,577
Nations Georgia Intermediate Municipal Bond Fund.................................... 2,164,700 1,801,365
Nations Georgia Municipal Bond Fund................................................. 498,750 477,946
Nations Maryland Intermediate Municipal Bond Fund................................... 630,087 5,135,133
Nations Maryland Municipal Bond Fund................................................ 2,503,507 1,541,667
Nations North Carolina Intermediate Municipal Bond Fund............................. 5,378,907 5,207,129
Nations North Carolina Municipal Bond Fund.......................................... 4,732,680 6,538,488
Nations South Carolina Intermediate Municipal Bond Fund............................. 5,019,935 3,074,460
Nations South Carolina Municipal Bond Fund.......................................... 3,202,448 943,765
Nations Tennessee Intermediate Municipal Bond Fund.................................. 3,357,160 2,910,229
Nations Tennessee Municipal Bond Fund............................................... 1,596,975 998,966
Nations Texas Intermediate Municipal Bond Fund...................................... 6,757,065 4,182,572
Nations Texas Municipal Bond Fund................................................... 4,806,710 4,685,930
Nations Virginia Intermediate Municipal Bond Fund................................... 25,089,732 40,076,010
Nations Virginia Municipal Bond Fund................................................ 6,779,658 5,293,696
</TABLE>
105
<PAGE> 109
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
At September 30, 1996, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes was as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
<S> <C> <C>
--------------------------
Nations Short-Term Municipal Income Fund............................................. $ 759,658 $ 22,350
Nations Intermediate Municipal Bond Fund............................................. 2,194,216 227,549
Nations Municipal Income Fund........................................................ 5,949,963 52,390
Nations Florida Intermediate Municipal Bond Fund..................................... 1,359,121 98,245
Nations Florida Municipal Bond Fund.................................................. 1,218,769 279,113
Nations Georgia Intermediate Municipal Bond Fund..................................... 1,801,149 118,369
Nations Georgia Municipal Bond Fund.................................................. 348,420 104,912
Nations Maryland Intermediate Municipal Bond Fund.................................... 2,321,058 414,677
Nations Maryland Municipal Bond Fund................................................. 356,879 71,153
Nations North Carolina Intermediate Municipal Bond Fund.............................. 1,227,855 65,860
Nations North Carolina Municipal Bond Fund........................................... 863,496 38,278
Nations South Carolina Intermediate Municipal Bond Fund.............................. 1,808,094 245,311
Nations South Carolina Municipal Bond Fund........................................... 379,097 61,042
Nations Tennessee Intermediate Municipal Bond Fund................................... 343,860 37,215
Nations Tennessee Municipal Bond Fund................................................ 248,381 19,593
Nations Texas Intermediate Municipal Bond Fund....................................... 566,568 62,344
Nations Texas Municipal Bond Fund.................................................... 738,658 7,347
Nations Virginia Intermediate Municipal Bond Fund.................................... 8,071,174 376,948
Nations Virginia Municipal Bond Fund................................................. 567,915 37,740
</TABLE>
5. SHARES OF BENEFICIAL INTEREST.
As of September 30, 1996, an unlimited number of shares without par value were
authorized for the Trust. The Trust's Declaration of Trust authorizes the Board
of Trustees to classify or reclassify any authorized but unissued shares into
one or more additional classes or series of shares. See Schedule of Capital
Stock Activity.
6. ORGANIZATION COSTS.
The Funds bear all costs in connection with their organization, including the
fees and expenses of registering and qualifying their shares for distribution
under Federal and state securities regulations. All such costs are being
amortized on the straight-line method over a period of five years from
commencement of operations. In the event that any of the shares issued by the
Funds to their sponsor prior to the commencement of the Funds' public offering
("initial shares") are redeemed during such amortization period by any holder
thereof, the Funds will be reimbursed by the holder for any unamortized
organization costs in the same proportion as the number of initial shares
redeemed bears to the number of initial shares outstanding at the time of
redemption. Such costs have been fully amortized for Nations Municipal Income
Fund, Nations Maryland Intermediate Municipal Bond Fund and Nations Virginia
Intermediate Municipal Bond Fund.
7. LINE OF CREDIT.
During the six month period ending September 30, 1996, the Trust participated in
a $25 million line of credit provided by Mellon Bank, N.A. ("Mellon Bank") under
a Line of Credit Agreement (the "Agreement") dated March 17, 1996. Advances
under the Agreement are taken primarily for temporary or emergency purposes,
including the meeting of redemption requests that otherwise might require the
untimely disposition of securities. Under this Agreement, each Fund may borrow
up to the lesser of $10 million or 5% of its net assets. Interest on borrowings
is payable either at the higher of Mellon Bank's Money Market Rate or the London
Interbank Offered Rate (LIBOR) plus 0.25% on an annualized basis. The Funds and
the other affiliated entities which are parties to the Agreement are charged an
aggregate commitment fee of 0.25% per annum on the amount of the line of credit.
Each Fund shall be liable only for that portion of the commitment fee with
respect to such Fund and shall not be liable for the portion of the commitment
fee of any other participating Fund. The Agreement requires, among other things,
that each participating Fund maintain a ratio of no less than 4 to 1 of net
assets (not including funds borrowed pursuant to the Agreement) to aggregate
amount of indebtedness pursuant to the Agreement.
106
<PAGE> 110
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
During the six months ended September 30, 1996, the Funds had the following
borrowings under the Agreement:
<TABLE>
<CAPTION>
AMOUNT
OUTSTANDING AVERAGE
AT MAXIMUM AVERAGE DEBT INTEREST
SEPTEMBER 30, AMOUNT AMOUNT AVERAGE PER RATE INTEREST
FUND 1996 OUTSTANDING OUTSTANDING SHARES SHARE HIGH LOW EXPENSE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Short-Term Municipal
Income Fund................. -- $ 700,000 $ 28,962 6,819,495 $0.0042 5.70% 5.50% $ 820
Nations Intermediate Municipal
Bond Fund................... -- 600,000 18,033 8,745,752 0.0021 5.50% 5.45% 501
Nations Municipal Income
Fund........................ -- 2,000,000 133,880 9,712,028 0.0138 6.00% 5.45% 3,745
Nations Florida Municipal Bond
Fund........................ $ 100,000 700,000 37,158 4,048,523 0.0092 6.30% 5.35% 1,042
Nations Georgia Intermediate
Municipal Bond Fund......... -- 300,000 11,475 5,345,708 0.0021 5.57% 5.40% 318
Nations Georgia Municipal Bond
Fund........................ -- 100,000 3,278 1,514,260 0.0022 6.00% 5.50% 97
Nations Maryland Intermediate
Municipal Bond Fund......... -- 400,000 14,754 7,986,186 0.0018 5.70% 5.45% 422
Nations Maryland Municipal
Bond Fund................... -- 300,000 3,279 1,466,132 0.0022 5.50% 5.45% 91
Nations North Carolina
Intermediate Municipal Bond
Fund........................ -- 1,400,000 9,290 3,807,596 0.0024 5.50% 5.45% 260
Nations North Carolina
Municipal Bond Fund......... -- 700,000 19,672 3,101,853 0.0063 5.95% 5.45% 554
Nations Tennessee Intermediate
Municipal Bond Fund......... -- 500,000 4,918 1,885,603 0.0026 5.50% 5.45% 137
Nations Tennessee Municipal
Bond Fund................... -- 100,000 2,732 858,424 0.0032 6.00% 5.45% 78
Nations Texas Intermediate
Municipal Bond Fund......... -- 200,000 4,372 3,203,647 0.0014 5.70% 5.40% 123
Nations Texas Municipal Bond
Fund........................ -- 200,000 6,011 1,845,108 0.0033 5.75% 5.50% 172
Nations Virginia Intermediate
Municipal Bond Fund......... 100,000 2,000,000 79,235 21,718,565 0.0036 6.30% 5.35% 2,217
Nations Virginia Municipal
Bond Fund................... -- 200,000 3,279 2,141,255 0.0015 6.00% 5.50% 95
</TABLE>
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the six month
period ended September 30, 1996.
107
<PAGE> 111
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
8. CAPITAL LOSS CARRYFORWARD.
At March 31, 1996, the following Funds had available for Federal income tax
purposes the following unused capital losses:
<TABLE>
<CAPTION>
LOSSES LOSSES LOSSES
DEFERRED DEFERRED DEFERRED
EXPIRING EXPIRING EXPIRING
NAME OF FUND IN 2002 IN 2003 IN 2004
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Nations Short-Term Municipal Income Fund............................... $ 330,511 $ 373,533 --
Nations Intermediate Municipal Bond Fund............................... 70,404 273,438 --
Nations Municipal Income Fund.......................................... 1,980,689 2,394,822 --
Nations Florida Intermediate Municipal Bond Fund....................... 216,636 752,907 --
Nations Florida Municipal Bond Fund.................................... 531,197 354,485 --
Nations Georgia Intermediate Municipal Bond Fund....................... 19,833 321,604 --
Nations Georgia Municipal Bond Fund.................................... 173,077 222,938 --
Nations Maryland Intermediate Municipal Bond Fund...................... -- 985,479 --
Nations Maryland Municipal Bond Fund................................... 31,592 4,504 --
Nations North Carolina Intermediate Municipal Bond Fund................ -- 329,168 --
Nations North Carolina Municipal Bond Fund............................. 358,960 425,261 --
Nations South Carolina Intermediate Municipal Bond Fund................ 24,129 395,705 --
Nations South Carolina Municipal Bond Fund............................. -- 33,479 --
Nations Tennessee Intermediate Municipal Bond Fund..................... 254,343 53,285 --
Nations Tennessee Municipal Bond Fund.................................. 34,041 174,808 --
Nations Texas Intermediate Municipal Bond Fund......................... 543,710 474,023 --
Nations Texas Municipal Bond Fund...................................... 664,167 131,901 --
Nations Virginia Intermediate Municipal Bond Fund...................... -- 1,674,683 --
Nations Virginia Municipal Bond Fund................................... 514,704 77,074 $ 12,358
</TABLE>
9. REORGANIZATION.
The Acquiring Fund, as listed below, acquired the assets and certain liabilities
of the Acquired Fund, also listed below, in a tax-free exchange for shares of
the Acquiring Fund, pursuant to a plan of reorganization approved by the
Acquired Fund's shareholders. The total shares issued by the Acquiring Fund, the
value of the shares issued by the Acquiring Fund, the total net assets of the
Acquired Fund and the Acquiring Fund and any unrealized appreciation included in
the Acquired Fund's total net assets at the acquisition date are as follows:
<TABLE>
<CAPTION>
VALUE OF TOTAL NET TOTAL NET TOTAL NET ASSETS
SHARES ISSUED SHARES ISSUED ASSETS OF ASSETS OF OF ACQUIRING ACQUIRED FUND
ACQUIRING ACQUIRED ACQUISITION BY ACQUIRING BY ACQUIRING ACQUIRED ACQUIRING FUND AFTER UNREALIZED
FUND FUND DATE FUND FUND FUND FUND ACQUISITION APPRECIATION
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Peachtree
Georgia Georgia
Intermediate Tax-Free
Municipal Income
Bond Fund
Fund 09/27/1996 120,237 $1,278,074 $1,278,074 $56,411,252 $ 57,689,326 $28,589
</TABLE>
108
<PAGE> 112
THE NATIONS FUND FAMILY
EQUITY FUNDS
GROWTH
Nations Capital Growth Fund
Nations Disciplined Equity Fund
Nations Emerging Growth Fund
Nations Emerging Markets Fund
Nations Equity Index Fund
Nations International Equity Fund
Nations Managed Index Fund
Nations Pacific Growth Fund
GROWTH AND INCOME
Nations Balanced Assets Fund
Nations Equity Income Fund
Nations Value Fund
BOND FUNDS
INCOME
Nations Diversified Income Fund
Nations Global Government Income Fund
Nations Government Securities Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund
Nations Strategic Fixed Income Fund
TAX-EXEMPT INCOME
Nations Florida Municipal Bond Fund
Nations Florida Intermediate Municipal Bond Fund
Nations Georgia Municipal Bond Fund
Nations Georgia Intermediate Municipal Bond Fund
Nations Maryland Municipal Bond Fund
Nations Maryland Intermediate Municipal Bond Fund
Nations North Carolina Municipal Bond Fund
Nations North Carolina Intermediate Municipal Bond Fund
Nations South Carolina Municipal Bond Fund
Nations South Carolina Intermediate Municipal Bond Fund
Nations Tennessee Municipal Bond Fund
Nations Tennessee Intermediate Municipal Bond Fund
Nations Texas Municipal Bond Fund
Nations Texas Intermediate Municipal Bond Fund
Nations Virginia Municipal Bond Fund
Nations Virginia Intermediate Municipal Bond Fund
Nations Municipal Income Fund
Nations Intermediate Municipal Bond Fund
Nations Short-Term Municipal Income Fund
MONEY MARKET FUNDS
Nations Government Money Market Fund
Nations Prime Fund
Nations Tax Exempt Fund
Nations Treasury Fund
For more complete information, including charges and expenses, please contact
your investment representative or Nations Fund at (800) 982-2271 for a current
prospectus. Please read the prospectus carefully before you invest or send
money.
<PAGE> 113
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> 114
[NATIONS
FUND
LOGO] -----------------------
BULK RATE
P.O. Box 34602 U.S. POSTAGE PAID
Charlotte, NC 28234-4602 PAID
Toll Free 1-800-982-2271 BOSTON, MA
PERMIT NO.
54201
----------------------
SAR2 1N-97816-996
