Nations Fund Trust
Nations Managed Index Fund
Nations Managed SmallCap Index Fund
Supplement dated April 15, 1997
to Prospectuses dated October 15, 1996
The combined prospectuses for the Primary A, Primary B, Investor A and
Investor C Shares for Nations Managed Index Fund and Nations Managed SmallCap
Index Fund are hereby supplemented by deleting the third paragraph which starts
with the words "Set forth below" in the section entitled "How Performance Is
Shown," as well as the three tables and accompanying notes below the paragraph,
and inserting the following in their place:
Set forth below is certain performance data for the Enhanced Equity
Index Common Trust Fund and Enhanced Small Cap Equity Index Common
Trust Fund (the "CTFs"), each of which is currently managed on behalf
of NationsBank by TradeStreet. (Prior to the formation of TradeStreet
in 1995, the CTFs were managed solely by NationsBank.) The performance
data for the CTFs is deemed relevant because the Enhanced Equity Index
and Enhanced Small Cap Equity Index Common Trust Funds have investment
objectives and policies that are substantially similar to those of
Nations Managed Index Fund and Nations Managed SmallCap Index Fund,
respectively. Moreover, the portfolio manager of TradeStreet (who
currently manages the CTFs and the Funds) employs the same quantitative
investment process for the Funds that has, and continues to be,
utilized for the CTFs. This performance data represents past
performance of the CTFs and is not necessarily indicative of the future
performance of the CTFs or the Funds.
Average Annual Total Returns for the Periods Indicated through
March 31, 1997*
<TABLE>
<S> <C> <C> <C> <C>
Since
One Three Five Inception
Year Year Year (12/31/88)**
Enhanced Equity Index 19.98% 22.31% 16.08% 16.52%
Common Trust Fund
S&P 500 Index 19.77% 22.28% 16.39% 16.28%
Lipper S&P 500 Index 19.19% 21.73% 15.89% 15.66%
Funds Average***
</TABLE>
<PAGE>
Annual Total Returns*
<TABLE>
<S> <C> <C> <C>
Enhanced Equity Lipper
Index Common S&P S&P 500 Index
Year Trust Fund 500 Index Funds Average***
1989 34.12% 31.55% 30.58%
1990 -1.52% -3.15% -3.57%
1991 31.72% 30.56% 29.65%
1992 5.52% 7.64% 7.12%
1993 10.47% 9.99% 9.52%
1994 0.69% 1.31% 0.90%
1995 37.66% 37.45% 36.82%
1996 23.62% 23.08% 22.30%
</TABLE>
Average Annual Total Returns for the Periods Indicated through
March 31, 1997*
<TABLE>
<S> <C> <C>
Since
One Inception
Year (10/1/95)
Enhanced Small Cap Equity
Index Common Trust Fund 11.76% 11.68%
S&P 600 Index 8.39% 9.83%
</TABLE>
* The total returns above reflect the deduction of 0.50% of fees and
expenses per annum. The CTFs are not subject to certain investment
limitations, diversification requirements, and other restrictions
imposed by the 1940 Act and the Internal Revenue Code, which if
applicable, may have adversely affected the performance results of
the CTFs.
** Prior to 12/31/88 the Enhanced Equity Index Common Trust Fund was
managed with a different objective and policies and therefore
performance prior thereto is not included in the prior performance
calculations.
*** The Lipper S&P 500 Index Funds Average represents the average
performance of mutual funds with similar objectives monitored by
Lipper Analytical Services, Inc. during the periods shown.
