<PAGE> 1
[NATIONS FUNDS LOGO]
INVESTMENTS FOR A LIFETIME(SM)
Nations Short-Term
Municipal Income Fund
Nations Intermediate
Municipal Bond Fund
Nations Municipal
Income Fund
MUNICIPAL Nations FL Intermediate
BOND Municipal Bond Fund
FUNDS
Nations FL Municipal
Bond Fund
Nations GA Intermediate
Municipal Bond Fund
Nations GA Municipal
Bond Fund
Nations MD Intermediate
Municipal Bond Fund
Nations MD Municipal
Bond Fund
Nations NC Intermediate
Municipal Bond Fund
Nations NC Municipal
Bond Fund
Nations SC Intermediate
Municipal Bond Fund
Nations SC Municipal
Bond Fund
Nations TN Intermediate
Municipal Bond Fund
Nations TN Municipal
Bond Fund
SEMI-ANNUAL REPORT FOR THE PERIOD Nations TX Intermediate
ENDED SEPTEMBER 30, 1997 Municipal Bond Fund
Nations TX Municipal
Bond Fund
Nations VA Intermediate
Municipal Bond Fund
Nations VA Municipal
Bond Fund
<PAGE> 2
This Report is submitted for
the general information of
shareholders of Nations Funds.
This material must be preceded or
accompanied by a current Nations
Funds prospectus.
Nations Funds 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 Funds Investment Adviser:
NationsBanc Advisors, Inc.
Nations Funds Investment Sub- [GRAPHICS DEPICTING BASKETS]
Advisers: TradeStreet Investment
Associates, Inc., Gartmore Global
Partners and Boatmen's Capital
Management, Inc.
___________________
| |
| NOT FDIC- |
| INSURED |
|___________________|
| |
| May Lose Value |
|___________________|
| |
| No Bank Guarantee |
|___________________|
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
SHAREHOLDER LETTER.................................................... 1
FINANCIAL STATEMENTS:
SCHEDULE OF INVESTMENTS:
Short-Term Municipal Income Fund................................. 2
Intermediate Municipal Bond Fund................................. 7
Municipal Income Fund............................................ 21
Florida Intermediate Municipal Bond Fund......................... 33
Florida Municipal Bond Fund...................................... 38
Georgia Intermediate Municipal Bond Fund......................... 41
Georgia Municipal Bond Fund...................................... 45
Maryland Intermediate Municipal Bond Fund........................ 47
Maryland Municipal Bond Fund..................................... 50
North Carolina Intermediate Municipal Bond Fund.................. 53
North Carolina Municipal Bond Fund............................... 57
South Carolina Intermediate Municipal Bond Fund.................. 59
South Carolina Municipal Bond Fund............................... 64
Tennessee Intermediate Municipal Bond Fund....................... 66
Tennessee Municipal Bond Fund.................................... 69
Texas Intermediate Municipal Bond Fund........................... 71
Texas Municipal Bond Fund........................................ 77
Virginia Intermediate Municipal Bond Fund........................ 79
Virginia Municipal Bond Fund..................................... 84
STATEMENTS OF ASSETS AND LIABILITIES................................ 86
STATEMENTS OF OPERATIONS............................................ 94
STATEMENTS OF CHANGES IN NET ASSETS................................. 98
SCHEDULE OF CAPITAL STOCK ACTIVITY.................................. 106
FINANCIAL HIGHLIGHTS:
Short-Term Municipal Income Fund................................. 114
Intermediate Municipal Bond Fund................................. 116
Municipal Income Fund............................................ 118
Florida Intermediate Municipal Bond Fund......................... 120
Florida Municipal Bond Fund...................................... 122
Georgia Intermediate Municipal Bond Fund......................... 124
Georgia Municipal Bond Fund...................................... 126
Maryland Intermediate Municipal Bond Fund........................ 128
Maryland Municipal Bond Fund..................................... 130
North Carolina Intermediate Municipal Bond Fund.................. 132
North Carolina Municipal Bond Fund............................... 134
South Carolina Intermediate Municipal Bond Fund.................. 136
South Carolina Municipal Bond Fund............................... 138
Tennessee Intermediate Municipal Bond Fund....................... 140
Tennessee Municipal Bond Fund.................................... 142
Texas Intermediate Municipal Bond Fund........................... 144
Texas Municipal Bond Fund........................................ 146
Virginia Intermediate Municipal Bond Fund........................ 148
Virginia Municipal Bond Fund..................................... 150
NOTES TO FINANCIAL STATEMENTS....................................... 152
</TABLE>
<PAGE> 4
NATIONS FUNDS
DEAR SHAREHOLDER:
The capital markets, particularly the U.S. stock markets, have continued to
surprise participants with solid investment returns through the first nine
months of 1997. But as we had anticipated in January, the markets have become
more volatile than in the previous two years. Stock investors have experienced
more daily swings exceeding one percent of value than at any time in the 1990s.
Bond investors have seen yields move up and down in a broad range for most of
the year. Meanwhile, municipal securities have enjoyed better total returns than
their taxable counterparts.
Investors have continued to benefit from the outstanding economic conditions in
the U.S. Employment is high and jobs are being produced at a 200,000-plus rate
monthly. The growth rate for the U.S. economy has exceeded three percent in real
terms (after inflation) for the past four quarters. Corporate profits are
exceeding Wall Street estimates and should finish the year up about twelve
percent, which would make 1997 a record sixth consecutive year of double-digit
profit growth. Inflation is perhaps the biggest surprise of all: retail
inflation has registered a benign 2.2 percent for the past year, and wholesale
inflation has actually dropped over the same period.
As we have noted, investors have been the beneficiaries of strong economic and
market conditions over the past three years. However, we do not subscribe to the
notion that the historical business cycle has been "repealed." Indeed, we
encourage investors to maintain reasonable expectations about the future. A
recent national survey of 750 mutual fund investors conducted by Montgomery
Asset Management found that those shareholders surveyed anticipated average
annual returns of 34 percent on their investments over the next decade. Such
results, roughly triple the average annual return from stocks over the past 60
years, demonstrate the strong exuberance in the marketplace and give us some
cause for concern. We believe investors should temper their expectations of the
future and enjoy the rewards of the recent past.
That being said, there is little on the horizon that would suggest trouble for
investors as 1997 draws to a close. We believe that the pattern of the past
several years will continue to hold true and should produce a reasonable
investment environment as we move into the new year. The economy continues its
vigorous pace, monetary policy is neutral, inflation is virtually absent, and
the profit picture remains intact. However, any changes on any of these fronts
could translate into market volatility. On behalf of our shareholders, we will
stay vigilant in our work as we pursue the Funds' investment objectives.
Sincerely,
/s/ A. Max Walker /s/ Mark Williamson
- ----------------------------------- -------------------------------------
A. Max Walker Mark Williamson
President and Chairman of the Board President, NationsBanc Advisors, Inc.
September 30, 1997
ADDENDUM
Since the date of this report, equity markets worldwide have experienced
enormous volatility sparked by events in the Pacific Rim. However, the U.S.
economic picture remains positive -- fundamentals have not changed. Although we
expect continued volatility, our long-term view of the domestic market remains
intact.
November 26, 1997
1
<PAGE> 5
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.0%
ALASKA -- 2.6%
$1,000,000 Alaska State, Student
Loan Corporation,
Student Loan
Revenue, Series A,
AMT, (AMBAC
Insured),
4.900% 07/01/00..... Aaa AAA $1,011,080
2,000,000 North Slope Borough,
Alaska, GO, Series
B, (CGIC Insured),
6.100% 06/30/99..... Aaa AAA 2,069,820
----------
3,080,900
----------
ARIZONA -- 4.6%
2,000,000 Arizona State
Transportation
Board, Highway
Revenue, Sub-Series
A,
5.900% 07/01/99..... Aa AA- 2,065,620
2,125,000 Maricopa County,
Arizona, School
District Number
006-Washington
Elementary, GO,
(Projects of 1996),
Series B,
(FGIC Insured),
5.000% 07/01/00..... Aaa AAA 2,175,277
1,000,000 Pima County, Arizona,
Unified School
District Number
10-Amphitheater, GO,
(Projects of 1994),
Series C,
(MBIA Insured)
6.000% 07/01/06..... Aaa AAA 1,105,930
----------
5,346,827
----------
DISTRICT OF COLUMBIA -- 2.4%
District of Columbia,
GO:
1,000,000 Series A,
(MBIA Insured),
6.000% 06/01/98..... Aaa AAA 1,013,950
1,750,000 Series C, Refunding,
(FSA-CR Insured),
5.100% 12/01/99..... Aaa AAA 1,784,772
----------
2,798,722
----------
FLORIDA -- 0.9%
1,000,000 Florida State Turnpike
Authority Revenue,
Department of
Transportation,
7.350% 07/01/98..... A1 NR 1,025,760
----------
GEORGIA -- 4.8%
1,000,000 Clarke County,
Georgia, School
District, GO,
Refunding,
(FSA Insured),
5.125% 09/01/00..... Aaa AAA 1,028,450
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
Georgia State, GO:
$1,000,000 Series C,
7.250% 07/01/00..... Aaa AAA $1,082,420
1,000,000 Series E,
4.200% 07/01/99..... Aaa AA+ 1,004,820
1,000,000 Georgia State,
Municipal Electric
Power Authority
Revenue, Series V,
5.700% 01/01/98..... A A 1,004,450
1,340,000 Metropolitan Atlanta
Rapid Transportation
Authority, Georgia,
Sales Tax, Revenue
Refunding, Series N,
6.000% 07/01/07..... A1 AA- 1,469,323
----------
5,589,463
----------
GUAM -- 2.2%
Government of Guam:
500,000 Airport Authority
Revenue, Series A,
5.400% 10/01/99..... NR BBB 509,195
2,000,000 GO, Series A,
5.375% 09/01/00..... NR BBB 2,024,000
----------
2,533,195
----------
HAWAII -- 0.9%
1,000,000 Hawaii State, GO,
Series BT,
5.700% 02/01/99..... Aa3 A+ 1,022,010
----------
ILLINOIS -- 4.5%
1,000,000 Chicago, Illinois,
Metropolitan Water
Reclamation
District-Greater
Chicago, GO,
Refunding,
4.150% 12/01/99..... Aa2 AA 1,002,840
1,000,000 Chicago, Illinois,
O'Hare International
Airport, General
Airport Revenue,
Second Lien, Series
A, AMT, (AMBAC
Insured),
5.000% 01/01/02..... Aaa AAA 1,018,700
2,000,000 Illinois Health
Facilities Authority
Revenue, (Ingalls
Memorial Hospital
Project),
Pre-Refunded,
(MBIA Insured)
7.000% 01/01/00..... Aaa AAA 2,160,380
1,000,000 Illinois State, GO,
5.600% 06/01/98..... A1 AA- 1,011,650
----------
5,193,570
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 6
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
INDIANA -- 1.1%
$1,280,000 Indiana State, Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
Inc. Project),
6.000% 09/15/99..... Aa NR $1,323,584
----------
IOWA -- 2.6%
3,000,000 Iowa Student Loan
Liquidity
Corporation, Student
Loan Revenue, Series
B,
4.900% 12/01/05..... Aaa NR 3,000,210
----------
MARYLAND -- 2.7%
1,500,000 Baltimore, Maryland,
Wastewater Utility
Revenue, Series A,
Pre-Refunded, (MBIA
Insured),
6.500% 07/01/00..... Aaa AAA 1,592,700
1,000,000 Montgomery County,
Maryland,
Construction for
Public Improvement,
GO, Pre-Refunded,
Series B,
6.800% 11/01/99..... AAA AAA 1,074,360
500,000 Prince Georges County,
Maryland, Housing
Authority Mortgage
Revenue,
4.175% 10/01/07+.... A1 NR 500,000
----------
3,167,060
----------
MASSACHUSETTS -- 1.9%
1,200,000 Massachusetts State,
Refunding,
Consolidated Loan,
GO, Series A,
(FSA Insured),
7.100% 02/01/98..... Aaa AAA 1,213,116
1,000,000 Massachusetts State,
Refunding, GO,
Series A,
5.500% 07/01/99..... A1 A+ 1,024,740
----------
2,237,856
----------
MICHIGAN -- 4.4%
2,000,000 Detroit, Michigan,
Convention
Facilities Revenue
Refunding, (Cobo
Hall Expansion
Project),
4.750% 09/30/00..... NR A 2,020,040
1,000,000 Detroit, Michigan, GO,
Series B,
5.100% 04/01/99..... Ba1 BBB 1,011,090
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MICHIGAN -- (CONTINUED)
Detroit, Michigan,
Self-Insurance, GO,
Series A:
$1,000,000 5.200% 05/01/98....... NR BBB- $1,006,530
1,000,000 5.600% 05/01/01....... NR BBB- 1,032,340
----------
5,070,000
----------
MINNESOTA -- 1.1%
1,200,000 Minneapolis,
Minnesota, Hospital
Revenue,
Pre-Refunded,
(Lifespan,
Incorporated-Abbott
Northwestern)
7.000% 12/01/99..... AAA AAA 1,295,664
----------
MISSOURI -- 0.9%
1,075,000 Columbia, Missouri,
Special Obligation
Capital
Improvements,
Refunding,
5.200% 02/01/01..... NR A 1,099,671
----------
NEVADA -- 2.6%
1,000,000 Clark County, Nevada,
Sanitation District,
GO, Series A, (AMBAC
Insured),
5.700% 07/01/99..... Aaa AAA 1,027,750
2,000,000 Washoe County, Nevada,
Airport Authority,
Airport System
Improvement Revenue,
Series A, AMT,
5.100% 07/01/99..... Aaa AAA 2,033,360
----------
3,061,110
----------
NEW MEXICO -- 2.2%
1,550,000 New Mexico Mortgage
Finance Authority,
Single-family
Mortgage Purchase,
Refunding, Series
A-1,
5.900% 07/01/99..... Aa AA 1,587,681
1,000,000 New Mexico State
Severance Tax
Revenue, Series A,
5.375% 07/01/99..... Aa AA 1,023,330
----------
2,611,011
----------
NEW YORK -- 4.4%
1,000,000 New York State,
Refunding, GO,
Series B,
6.375% 08/15/00..... A A- 1,060,210
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 7
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
$4,000,000 New York State Thruway
Authority, Service
Contract Revenue,
Local Highways and
Bridges, Refunding,
5.000% 04/01/01..... Baa1 BBB+ $4,069,320
----------
5,129,530
----------
NORTH CAROLINA -- 0.9%
1,000,000 North Carolina Eastern
Municipal Power
Agency, Power System
Revenue, Refunding,
Series A,
5.000% 01/01/99..... Baa1 BBB 1,010,100
----------
OKLAHOMA -- 0.9%
1,075,000 Grand River Dam
Authority, Oklahoma,
Revenue Refunding,
5.000% 06/01/99..... A2 A- 1,091,792
----------
PENNSYLVANIA -- 6.0%
4,000,000 Dauphin County,
Pennsylvania,
General Authority,
School District
Pooled Financing
Program II, (AMBAC
Insured),
4.450% 09/01/32..... Aaa NR 3,999,880
Monroeville,
Pennsylvania,
Hospital Authority,
Revenue Refunding,
(Forbes Health
System):
1,000,000 4.875% 10/01/98....... A3 BBB+ 1,006,480
1,000,000 5.000% 10/01/99....... A3 BBB+ 1,010,620
1,000,000 5.125% 10/01/00....... Baa1 BBB+ 1,014,850
----------
7,031,830
----------
SOUTH CAROLINA -- 5.2%
1,000,000 Medical University of
South Carolina,
Hospital Facilities
Revenue Refunding,
Series A,
6.900% 07/01/98..... A A+ 1,022,340
5,045,000 York County, South
Carolina, Pollution
Control Revenue,
(CFC Insured),
3.700% 11/15/14+.... Aa3 AA- 5,045,252
----------
6,067,592
----------
SOUTH DAKOTA -- 0.5%
515,000 South Dakota Student
Loan Assistance
Corporation, Student
Loan Revenue, Series
A,
7.000% 08/01/98..... NR A+ 526,860
----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- 1.9%
$2,100,000 McMinn County,
Tennessee,
Industrial
Development Board,
PCR, Refunding,
(Bowater Inc.
Project),
6.850% 04/01/01..... Baa1 BBB $2,258,634
----------
TEXAS -- 14.0%
1,000,000 Addison, Texas,
Refunding, GO,
(FGIC Insured),
6.100% 09/01/99..... Aaa AAA 1,019,100
980,000 Bell County, Texas,
Health Facilities
Development
Corporation, Revenue
Refunding, (Central
Texas Pooled
Health), Series A,
4.750% 10/01/23..... NR AA- 987,438
655,000 Bexar County, Texas,
Refunding Limited
Tax, GO,
6.100% 06/15/98..... Aa AA 656,218
Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, AMT,
(Guaranteed
Student Loans):
1,000,000 Senior Lien, Series
A-2,
5.850% 06/01/01..... Aaa NR 1,036,570
1,415,000 Series C-1,
6.000% 11/01/99..... Aa NR 1,454,196
1,000,000 Conroe, Texas,
Independent School
District, GO,
Schoolhouse and
Refunding,
(MBIA Insured),
7.000% 02/01/99..... Aaa AAA 1,039,450
1,650,000 Harris County, Texas,
GO, Refunding,
5.600% 10/01/01..... Aa2 AA 1,735,536
1,000,000 Harris County, Texas,
Municipal Utilities
District No. 203,
Refunding, GO, (MBIA
Insured),
6.950% 03/01/99..... Aaa AAA 1,041,350
2,450,000 Houston, Texas, Water
and Sewer System
Revenue Refunding,
Prior Lien, Series
B,
5.250% 12/01/99..... A3 A 2,510,834
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 8
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$2,455,000 Texas National
Research Laboratory
Commission Revenue,
(Superconducting
Super Collider),
Pre-Refunded,
6.650% 12/01/01..... AAA AAA $ 2,723,970
1,000,000 Texas State, Public
Finance Authority,
GO, Series B, Pre-
Refunded,
7.000% 10/01/99..... NR AA 1,057,190
1,000,000 Texas State College,
Texas, Student Loan
Authority Revenue,
GO, AMT,
5.100% 08/01/01..... Aa AA 1,029,020
------------
16,290,872
------------
VIRGINIA -- 1.8%
1,000,000 Ashland, Virginia,
Industrial
Development
Authority,
Educational
Facilities Revenue,
(Randolph-Macon
College Project),
4.375% 11/01/11..... NR A- 1,011,600
1,000,000 Virginia Beach,
Virginia, GO, Series
A,
6.800% 06/01/99..... Aa AA 1,045,830
------------
2,057,430
------------
WASHINGTON -- 15.1%
1,000,000 Conservation and
Renewable Energy
System Revenue,
Washington,
(Washington
Conservation
Project),
5.050% 10/01/98..... Aa AA 1,010,680
1,570,000 King County,
Washington, GO,
Series A,
9.000% 12/01/98..... Aa1 AA+ 1,659,883
1,000,000 Washington State, GO,
Series B,
Pre-Refunded,
6.600% 08/01/00..... Aa1 AA+ 1,065,400
<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:
Pre-Refunded, Series
A:
$2,535,000 (Nuclear Project No. 1
Revenue),
7.500% 07/01/15..... Aaa AAA $ 2,730,829
3,845,000 (Nuclear Project No. 2
Revenue),
7.375% 07/01/00..... Aaa AAA 4,231,692
Revenue Refunding,
(Nuclear Project No.
2):
4,000,000 Series A,
5.000% 07/01/00..... Aa1 AA- 4,070,640
1,000,000 Series C,
7.300% 07/01/00..... Aa AA 1,076,330
1,675,000 (MBIA-IBC Insured),
7.200% 07/01/99..... Aaa AAA 1,761,346
------------
17,606,800
------------
WISCONSIN -- 4.9%
1,115,000 Kenosha, Wisconsin,
GO, Refunding,
Promissory Notes,
Series B,
4.150% 12/01/99..... A1 NR 1,117,698
2,000,000 Milwaukee, Wisconsin,
Metropolitan Sewer
District, Refunding,
GO, Series A,
5.000% 10/01/03..... Aa1 AA+ 2,063,760
1,000,000 Wisconsin State, GO,
Series G,
Pre-Refunded,
6.500% 05/01/02..... AAA AA 1,048,500
1,480,000 Wisconsin State
Transportation
Revenue, Series A,
4.600% 07/01/98..... A1 AA- 1,488,362
------------
5,718,320
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $113,278,862).......... 114,246,373
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 9
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUND -- 2.3%
(Cost $2,669,000)
2,669,000 AIM Tax-Exempt Fund........ $ 2,669,000
============
TOTAL INVESTMENTS
(Cost $115,947,862*).................. 100.3% 116,915,373
OTHER ASSETS AND
LIABILITIES (NET)..................... (0.3) (300,660)
----- ------------
NET ASSETS.............................. 100.0% $116,614,713
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1997.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CGIC Capital Guaranty Insurance Corporation
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
IBC Insured Bond Certificate
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 10
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.6%
ALABAMA -- 1.0%
$ 2,500,000 Birmingham, Alabama,
Industrial Water
Board, Industrial
Water Supply
Revenue,
6.000% 07/01/07.... NR AAA $ 2,766,150
2,500,000 Birmingham, Alabama,
Special Care
Facility Financing
Authority Revenue,
(Baptist Medical
Centers), Series A,
(MBIA Insured),
5.500% 08/15/05.... Aaa AAA 2,628,075
3,600,000 Jefferson County,
Alabama, Sewer
Revenue Refunding,
Series A, (FGIC
Insured),
5.625% 02/01/18.... Aaa AAA 3,689,208
-----------
9,083,433
-----------
ALASKA -- 2.3%
3,000,000 Alaska State, Housing
Finance
Corporation, Series
A, (MBIA Insured),
5.400% 06/01/08.... Aaa AAA 3,053,340
Alaska State, Student
Loan Corporation,
Student Loan
Revenue, Series A,
AMT, (AMBAC
Insured):
3,280,000 5.250% 07/01/03...... Aaa AAA 3,359,802
1,500,000 5.150% 07/01/05...... Aaa AAA 1,526,730
1,250,000 5.200% 07/01/06...... Aaa AAA 1,273,662
2,000,000 Anchorage, Alaska,
GO, Series A,
(AMBAC Insured),
5.100% 08/01/07.... Aaa AAA 2,054,260
9,000,000 Valdez, Alaska,
Marine Terminal
Revenue Refunding,
(BP Pipeline Inc.
Project), Series B,
5.500% 10/01/28.... Aa2 AA 8,842,320
-----------
20,110,114
-----------
ARIZONA -- 3.0%
2,000,000 Arizona State,
Transportation
Board, Excise Tax
Revenue, (Maricopa
County Regional
Area Project),
Series A, (AMBAC
Insured),
5.500% 07/01/02.... Aaa AAA 2,106,420
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ARIZONA -- (CONTINUED)
Arizona State,
University, Revenue
Refunding:
1,250,000 6.000% 07/01/07...... A1 AA 1,390,337
955,000 Series A,
6.500% 07/01/01.... A1 AA 1,031,830
$ 1,500,000 Flagstaff, Arizona,
GO, Series A, (FGIC
Insured),
4.500% 07/01/08.... Aaa AAA $ 1,471,080
1,100,000 Glendale, Arizona,
Refunding, GO,
(FGIC Insured),
4.950% 07/01/01.... Aaa AAA 1,129,832
7,000,000 Maricopa County,
Arizona, School
District No. 4-Mesa
University, Series
D, (AMBAC-TCRS
Insured),
6.900% 07/01/00.... Aaa AAA 7,508,480
300,000 Maricopa County,
Arizona, Union High
School District No
210-Phoenix, Series
D,
6.700% 07/01/03.... Aa3 AA 328,551
Mesa, Arizona,
Refunding, GO:
3,000,000 (FGIC Insured),
5.350% 07/01/00.... Aaa AAA 3,098,070
900,000 (MBIA Insured),
5.000% 07/01/03.... Aaa AAA 931,284
900,000 Pima County, Arizona,
Refunding, GO,
5.350% 07/01/00.... Aa A+ 929,178
Pima County, Arizona,
Union School
District No.
1-Tucson, (MBIA
Insured):
400,000 6.700% 07/01/04...... Aaa AAA 438,360
2,125,000 (Project of 1989),
Series G, GO,
7.300% 07/01/05.... Aaa AAA 2,512,430
Scottsdale, Arizona,
Refunding, GO:
1,285,000 5.250% 07/01/09...... Aa1 AA+ 1,342,259
1,000,000 5.500% 07/01/10...... Aa1 AA+ 1,063,160
400,000 Tempe, Arizona, GO,
5.600% 07/01/00.... Aa1 AA+ 413,884
-----------
25,695,155
-----------
ARKANSAS -- 0.9%
7,000,000 Hot Springs,
Arkansas,
Industrial
Development Revenue
Refunding,
(Willamette
Industries),
6.650% 12/01/02.... NR A- 7,652,330
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 11
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
CALIFORNIA -- 0.7%
California State, GO:
$ 400,000 7.000% 08/01/04...... A1 A+ $ 462,840
3,500,000 (FGIC-TCRS Insured),
5.000% 11/01/22.... Aaa AAA 3,313,275
900,000 Contra Costa,
California, Water
District, Water
Revenue, Series G,
(MBIA Insured),
5.400% 10/01/03.... Aaa AAA 955,800
900,000 Los Angeles,
California, GO,
Series A,
5.400% 09/01/03.... Aaa AAA 957,996
600,000 University of
California Revenue
Bonds, (Multiple
Purpose Projects),
Series C, (AMBAC
Insured),
4.800% 09/01/04.... Aaa AAA 618,498
-----------
6,308,409
-----------
COLORADO -- 2.4%
1,500,000 Arapahoe County,
Colorado, School
District No. 5,
(Cherry Creek),
7.000% 12/15/04.... Aa AA 1,642,095
Denver, Colorado,
City and County GO:
300,000 6.375% 08/01/03...... Aa2 AA 323,883
3,445,000 Series A,
5.700% 08/01/01.... Aa2 AA 3,614,080
7,000,000 Series C,
5.750% 08/01/06.... Aa2 AA 7,284,200
3,500,000 Denver Metropolitan
Major League
Baseball Stadium
District, Revenue
Refunding and
Improvement-Sales
Tax-Series A, (FGIC
Insured),
5.900% 10/01/99.... Aaa AAA 3,630,200
1,195,000 La Plata County,
Colorado, School
District No. 9-R-
Durango, Refunding,
(MBIA Insured),
5.000% 11/01/02.... Aaa AAA 1,232,809
Northglenn, Colorado,
Refunding, Water
and Sewer, GO, (FSA
Insured):
1,500,000 5.250% 12/01/03...... Aaa AAA 1,573,920
1,500,000 5.250% 12/01/04...... Aaa AAA 1,575,690
-----------
20,876,877
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
CONNECTICUT -- (CONTINUED)
CONNECTICUT -- 2.0%
Connecticut State,
GO:
300,000 Series A,
6.600% 03/01/04.... AAA AAA 328,035
$ 1,000,000 Series B,
4.800% 03/15/01.... Aa3 AA- $ 1,019,110
2,500,000 Series C,
5.500% 08/01/07.... Aa3 AA- 2,672,150
6,625,000 Series D,
5.500% 12/01/07.... Aa3 AA- 7,093,387
6,140,000 Connecticut State,
Special Tax
Obligation, Revenue
Refunding,
(Transportation
Infrastructure
Project), Series A,
(FGIC Insured),
5.100% 09/01/04.... Aaa AAA 6,375,223
-----------
17,487,905
-----------
DISTRICT OF COLUMBIA -- 0.4%
1,100,000 District of Columbia,
GO, Series A,
(AMBAC Insured),
7.000% 06/01/98.... Aaa AAA 1,122,528
District of Columbia,
Hospital Revenue,
Refunding,
(Medlantic
Healthcare Group),
Series A, (MBIA
Insured):
1,000,000 6.000% 08/15/06...... Aaa AAA 1,080,580
1,350,000 6.000% 08/15/07...... Aaa AAA 1,461,780
-----------
3,664,888
-----------
FLORIDA -- 7.1%
5,895,000 Alachua County,
Florida, Public
Improvement
Revenue, Refunding,
(FSA Insured),
5.000% 08/01/14.... Aaa AAA 5,795,846
1,000,000 Broward County,
Florida, School
District,
Refunding,
5.100% 02/15/02.... A1 AA- 1,033,160
2,700,000 Duval County,
Florida, Housing
Finance Authority
Refunding,
(Greentree Place
Project),
6.750% 04/01/25.... NR BBB+ 2,847,177
4,835,000 Duval County,
Florida, Housing
Finance Authority,
Multi-Family
Mortgage Revenue,
Refunding, (The
Cove Project),
6.100% 10/01/02.... NR AAA 5,031,011
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 12
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Florida State Board
of Education,
Capital Outlay,
Public Education:
$ 500,000 5.700% 06/01/03...... Aa2 AA+ $ 533,395
Series A:
3,035,000 5.400% 01/01/06...... Aa2 AA+ 3,219,194
10,000,000 7.600% 06/01/13+..... AAA AA+ 3,622,800
3,000,000 Florida State,
Refunding, Senior
Lien, GO,
5.000% 07/01/19.... Aa2 AA+ 2,876,880
3,650,000 Florida State
Division of Bond
Financing,
Department of
General Services
Revenue, Department
of Natural
Resources-
Preservation 2000,
Series A, (AMBAC
Insured),
6.200% 07/01/00.... Aaa AAA 3,850,239
Florida State Housing
Finance Agency,
Refunding, Multi-
family Housing:
7,440,000 (Altamonte Project),
Series C,
7.000% 12/01/24.... NR BBB+ 8,187,794
2,000,000 (Andover Project),
Series E,
6.350% 05/01/26.... NR BBB+ 2,118,460
Jacksonville,
Florida, Electric
Authority Revenue,
Refunding, (St.
John River), Issue
2:
300,000 Series 6-C,
6.400% 10/01/00.... Aa1 AA 319,482
Series 10:
1,500,000 4.600% 10/01/00...... Aa1 AA 1,521,840
5,900,000 5.000% 10/01/04...... Aa1 AA 6,084,847
2,080,000 Nassau County,
Florida, Pollution
Control Revenue
Refunding, (ITT
Rayonier Inc.
Project),
5.700% 06/01/01.... Baa2 BBB+ 2,148,494
Orlando Utilities
Commission,
Florida, Water and
Electric Revenue,
Refunding:
1,000,000 5.200% 10/01/00...... Aa1 AA 1,031,640
4,000,000 5.600% 10/01/03...... Aa1 AA 4,268,200
5,490,000 Pinellas County,
Florida, Resource
Recovery Revenue,
Refunding, Series
A, (MBIA Insured),
6.600% 10/01/00.... Aaa AAA 5,882,096
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 600,000 Tampa, Florida,
Guaranteed
Entitlement
Revenue, Refunding,
(AMBAC Insured),
6.500% 10/01/99.... Aaa AAA $ 628,830
-----------
61,001,385
-----------
GEORGIA -- 4.5%
8,500,000 Burke County,
Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation
Project), Series B,
4.900% 01/01/06.... A3 A 8,623,845
3,000,000 Cartersville,
Georgia,
Development
Authority, Revenue
Refunding, Sewer
Facilities,
(Anheuser Busch
Companies Inc.),
5.625% 05/01/09.... A1 A+ 3,147,090
1,500,000 Fulco, Georgia,
Hospital Authority
Revenue, Revenue
Anticipation
Certificates, St.
Joseph's Hospital,
5.100% 10/01/05.... A A 1,538,625
1,105,000 Fulton County,
Georgia,
Development
Authority Revenue,
(Clark University
Project),
5.100% 01/01/05.... Baa2 AAA 1,121,641
5,000,000 Fulton De Kalb,
Georgia, Hospital
Authority, Hospital
Revenue Refunding,
(Grady Memorial
Hospital Projects),
(MBIA Insured),
5.250% 01/01/04.... Aaa AAA 5,207,600
Georgia Municipal
Electric Authority,
Power Revenue:
300,000 Series U,
6.800% 01/01/03.... AAA A 328,989
4,575,000 Series Q,
7.900% 01/01/01.... AAA A 4,713,073
Georgia State, GO:
2,940,000 7.250% 09/01/04...... Aaa AAA 3,436,360
200,000 Series C,
6.500% 04/01/04.... Aaa AAA 223,768
Series D:
2,480,000 6.800% 08/01/00...... Aaa AAA 2,661,511
300,000 7.000% 11/01/00...... Aaa AAA 325,509
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 13
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Gwinnett County,
Georgia, School
District:
$ 1,500,000 4.500% 02/01/15...... Aa1 AA+ $ 1,369,680
1,615,000 Series A,
5.100% 02/01/01.... Aa1 AA+ 1,661,237
4,000,000 Refunding, Series B,
6.200% 02/01/03.... Aa1 AA+ 4,358,680
-----------
38,717,608
-----------
GUAM -- 0.2%
1,500,000 Government of Guam,
GO, Series A,
5.200% 11/15/08.... NR BBB 1,498,650
-----------
HAWAII -- 2.0%
Hawaii State, GO:
900,000 Refunding, Series CC,
4.600% 02/01/00.... Aa3 A+ 908,487
1,000,000 Series BU,
5.850% 11/01/01.... Aa A+ 1,059,010
2,000,000 Series CJ,
5.625% 01/01/02.... Aa3 A+ 2,097,100
2,000,000 Series CL,
5.000% 03/01/03.... Aa3 A+ 2,055,280
5,000,000 Series CN,
6.250% 03/01/04.... Aaa AAA 5,480,050
Honolulu, Hawaii,
City and County,
Refunding, GO:
Series A:
2,500,000 7.350% 07/01/07...... Aa AA 3,011,550
1,300,000 5.250% 01/01/01...... Aa AA 1,339,819
900,000 Series 1,
5.375% 06/01/99.... Aa AA 919,449
-----------
16,870,745
-----------
ILLINOIS -- 7.2%
2,500,000 Chicago, Illinois,
Gas Supply Revenue,
6.875% 03/01/15.... Aa3 AA- 2,720,250
Chicago, Illinois,
Metropolitan Water
Reclamation
District-Greater
Chicago Capital
Improvement:
2,165,000 5.750% 12/01/01...... Aa2 AA 2,287,756
1,100,000 5.000% 12/01/02...... Aa2 AA 1,133,231
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 2,037,400
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$ 5,000,000 Chicago, Illinois,
Park District, GO,
6.600% 11/15/14.... A1 AA- $ 5,563,550
Chicago, Illinois,
School Financing
Authority, GO,
Series A, (MBIA
Insured):
2,000,000 4.800% 06/01/04...... Aaa AAA 2,023,780
1,160,000 4.900% 06/01/05...... Aaa AAA 1,176,959
4,000,000 Chicago, Illinois,
Water Revenue,
(AMBAC Insured),
5.400% 11/01/02.... Aaa AAA 4,187,760
1,500,000 Cook County,
Illinois, Capital
Improvement, GO,
(FGIC Insured),
5.100% 11/15/03.... Aaa AAA 1,555,770
2,000,000 Cook County,
Illinois, Community
College District
Number 508, Chicago
Certificates of
Participation,
(FGIC Insured),
8.750% 01/01/07.... Aaa AAA 2,580,940
Du Page County,
Illinois, GO:
100,000 (Jail Project),
9.000% 01/01/00.... AAA AAA 110,431
300,000 (Stormwater Project),
9.000% 01/01/00.... AAA AAA 331,293
1,145,000 Du Page County,
Illinois, School
District GO, (FGIC
Insured),
6.750% 02/01/11.... Aaa A1 1,346,818
900,000 Du Page County,
Illinois, Water
Revenue,
5.000% 05/01/02.... Aa1 AA 924,426
Illinois State, GO:
1,450,000 5.000% 06/01/02...... Aa3 AA 1,489,977
1,100,000 5.500% 08/01/03...... Aa3 AA 1,159,873
1,000,000 Illinois State Health
Facilities
Authority Revenue,
(Lutheran General
Health Systems
Project), Series C,
5.250% 04/01/02.... A A+ 1,027,800
Illinois State Sales
Tax Revenue
Refunding:
1,900,000 Series Q,
5.300% 06/15/00.... Aa3 AAA 1,955,803
12,500,000 Series S,
6.000% 06/15/03.... Aa3 AAA 13,479,375
1,300,000 Illinois State Toll
Highway Authority,
Toll Highway
Priority Revenue,
Series A,
4.500% 01/01/00.... Aa3 AAA 1,309,334
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 14
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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 $ 1,638,815
1,050,000 Lansing, Illinois,
Sales Tax Increment
Revenue, Refunding,
6.500% 12/01/02.... NR BBB 1,130,273
1,200,000 Madison Macoupin Etc.
Counties, Illinois,
Community College
District No. 536,
(Lewis and Clark
Community College),
GO, (FGIC Insured),
6.375% 11/01/01.... NR AAA 1,292,808
Metropolitan Pier and
Exposition
Authority,
Illinois, Dedicated
Tax Revenue
Refunding:
2,400,000 (MBIA Insured),
6.500% 06/01/05.... Aaa AAA 2,686,776
2,000,000 (McCormick Place
Expansion Project),
Series A, (AMBAC
Insured),
6.000% 12/15/06.... Aaa AAA 2,195,500
Regional
Transportation
Authority,
Illinois, Series A:
3,300,000 (AMBAC Insured),
5.800% 06/01/05.... Aaa AAA 3,546,642
1,000,000 (FGIC Insured),
6.350% 11/01/04.... Aaa AAA 1,096,790
500,000 Waukegan, Illinois,
GO, (FGIC Insured),
5.400% 01/01/00.... Aaa AAA 513,600
-----------
62,503,730
-----------
INDIANA -- 0.6%
Indiana Health
Facilities
Financing
Authority, Hospital
Revenue:
2,000,000 (Clarian Health
Partners Inc.
Project), Series A,
5.000% 02/15/04.... 2,032,620
(Methodist Hospital
Inc. Project):
1,280,000 6.200% 09/15/00...... Aa NR 1,346,125
1,040,000 6.500% 09/15/02...... Aa NR 1,130,054
900,000 Indiana Municipal
Power Agency, Power
Supply Systems
Revenue, Series B,
(MBIA Insured),
5.375% 01/01/03.... Aaa AAA 941,976
-----------
5,450,775
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
IOWA -- 1.2%
Iowa Student Loan
Liquidity
Corporation,
Student Loan
Revenue:
$ 7,000,000 Series B,
4.900% 12/01/05.... Aaa NR $ 7,000,490
3,000,000 Series C, (AMBAC
Insured),
6.500% 12/01/99.... Aaa AAA 3,134,460
-----------
10,134,950
-----------
KANSAS -- 0.8%
5,000,000 Kansas State
Department of
Transportation,
Highway Revenue,
7.250% 03/01/05.... Aa AA 5,860,700
1,850,000 Labette County,
Kansas, Single
Family Mortgage
Revenue,
6.300% 12/01/14+... AAA A- 758,611
-----------
6,619,311
-----------
MAINE -- 0.4%
Maine State,
Municipal Board
Refunding:
2,325,000 Series A,
4.900% 11/01/02.... Aa A+ 2,384,822
1,000,000 Series E, (AMBAC
Insured),
5.250% 11/01/04.... Aaa AAA 1,046,270
-----------
3,431,092
-----------
MARYLAND -- 2.7%
Baltimore County,
Maryland,
Consolidated Public
Improvement Bonds:
2,000,000 6.750% 04/01/99...... Aaa AAA 2,082,120
2,000,000 6.900% 04/01/03...... AAA AAA 2,170,060
1,500,000 Baltimore, Maryland,
Port Facilities
Revenue,
Consolidated Coal
Sales, Series 85, AA-/
6.500% 12/01/10.... Aa3 A-1+ 1,637,835
Maryland State, GO,
Third Series:
4,890,000 6.250% 07/15/02...... Aaa AAA 5,235,870
1,500,000 6.800% 07/15/04...... AAA AAA 1,625,775
1,490,000 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 1,575,660
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 15
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 1,000,000 Prince Georges
County, Maryland,
Consolidated Public
Improvement, (MBIA
Insured),
5.375% 01/01/09.... Aaa AAA $ 1,040,200
3,500,000 Prince Georges
County, Maryland,
Solid Waste
Management Systems
Revenue, (FSA
Insured),
5.200% 06/15/06.... Aaa AAA 3,623,270
Washington County,
Maryland, Suburban
Sanitation District
Authority, GO:
2,000,000 General Construction
Revenue,
5.000% 06/01/04.... Aa1 AA 2,067,420
2,500,000 Water Supply Revenue,
4.900% 12/01/05.... Aa1 AA 2,571,025
-----------
23,629,235
-----------
MASSACHUSETTS -- 3.6%
Massachusetts State,
Refunding, GO:
1,000,000 Series B,
5.000% 11/01/01.... A1 A+ 1,027,820
5,000,000 Series C,
5.000% 08/01/07.... A1 A+ 5,090,500
12,840,000 Series C, (AMBAC
Insured),
4.950% 08/01/05.... Aaa AAA 13,208,636
Series D, (FGIC
Insured):
1,260,000 5.125% 11/01/01...... Aaa AAA 1,303,772
400,000 6.375% 07/01/00...... A1 A+ 422,896
6,000,000 Massachusetts State
Water Resources
Authority,
Refunding, Series
B,
5.125% 03/01/04.... A A 6,193,320
2,000,000 New England Education
Loan Marketing
Corporation, Series
A, AMT,
5.700% 07/01/05.... A1 A- 2,074,580
2,000,000 University of Lowell,
Building Authority,
Massachusetts
Guaranteed Bond,
Series A, (AMBAC
Insured),
5.700% 11/01/09.... Aaa AAA 2,126,700
-----------
31,448,224
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MICHIGAN -- 1.5%
$ 7,500,000 Detroit, Michigan,
Convention
Facilities, Revenue
Refunding, (Cobo
Hall Expansion
Project), (FSA
Insured),
5.100% 09/30/04.... Aaa AAA $ 7,735,875
Detroit, Michigan,
Refunding, GO,
Series B:
1,000,000 6.750% 04/01/03...... Ba1 BBB 1,096,870
2,000,000 7.000% 04/01/04...... Baa2 BBB 2,240,920
900,000 Michigan State,
Recreation Program,
GO,
5.500% 11/01/99.... Aa2 AA 927,639
600,000 Michigan State, Trunk
Line, Series A,
5.250% 11/15/00.... A1 AA- 619,308
-----------
12,620,612
-----------
MINNESOTA -- 1.2%
900,000 Metropolitan Council,
Minnesota,
Minneapolis-St.
Paul
Metropolitan Area,
Refunding, Series
A,
5.000% 12/01/04.... Aaa AAA 925,092
900,000 Minnesota State, GO,
4.875% 08/01/00.... Aaa AAA 919,170
1,390,000 Rochester, Minnesota,
Health Care
Facilities Revenue,
(Mayo
Foundation/Mayo
Medical Center),
Series C,
7.100% 11/15/00.... NR AA+ 1,470,815
900,000 St. Paul, Minnesota,
Sewer Revenue
Refunding, (AMBAC
Insured),
5.100% 12/01/01.... Aaa AAA 930,636
Southern Minnesota
Municipal Power
Agency,
Power Supply
Systems Revenue,
Series B:
2,150,000 Refunded Balance,
5.800% 01/01/07.... AAA AAA 2,345,865
3,850,000 Unrefunded Balance,
5.800% 01/01/07.... A2 A+ 4,056,630
-----------
10,648,208
-----------
MISSOURI -- 1.9%
300,000 Clay County,
Missouri, Public
School District
Number 53, Series
B, (MBIA Insured),
5.000% 03/01/03.... Aaa AAA 308,730
400,000 Columbia, Missouri,
Refunding, GO,
5.200% 10/01/00.... Aa AA 412,428
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 16
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSOURI -- (CONTINUED)
$ 300,000 Kansas City,
Missouri, GO,
6.300% 03/01/03.... Aa3 AA $ 318,975
2,000,000 Kansas City,
Missouri,
Industrial
Development
Authority, PCR,
(General Motors
Corporation
Project),
6.050% 04/01/06.... A3 A- 2,063,920
200,000 Kansas City,
Missouri, Water
Revenue, Seventh
Issue, Series B,
6.600% 12/01/02.... Aa NR 202,934
300,000 Mehlville, Missouri,
School District
Number R9, GO,
(MBIA Insured),
5.000% 02/15/00.... Aaa AAA 305,970
Metropolitan Saint
Louis, Missouri,
Sewer District,
Mississippi River
Subdistrict, (FGIC
Insured):
400,000 6.300% 02/15/01...... Aaa AAA 418,640
400,000 6.400% 02/15/02...... Aaa AAA 418,620
Missouri State:
Refunding, 3rd
State Building:
900,000 Series A,
5.000% 08/01/01.... Aaa AAA 928,431
300,000 Series B,
5.500% 11/01/01.... Aaa AAA 315,642
Refunding, State
Water Pollution
Control, Series B:
200,000 5.700% 11/01/02...... Aaa AAA 211,180
300,000 5.800% 11/01/03...... Aaa AAA 317,838
400,000 Missouri State Board
of Public
Buildings, State
Office Buildings,
Special Obligation,
5.900% 12/01/01.... Aa AA 425,736
1,000,000 Missouri State
Environmental
Improvement and
Energy Resource
Authority,
Pollution Control
Revenue,
(Association of
Electrical
Cooperation Thomas
Hill),
5.500% 12/01/05.... A1 AA 1,064,150
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSOURI -- (CONTINUED)
Missouri State Health
and Educational
Facilities
Authority:
$ 100,000 (St. Lukes Hospital
Project), (MBIA
Insured),
6.500% 11/15/02.... Aaa AAA $ 109,827
300,000 (St. Louis
University), (AMBAC
Insured),
6.100% 08/01/99.... Aaa AAA 311,190
Health Facilities
Revenue:
300,000 (Baptist Medical
Center), Series A,
7.300% 07/01/99.... NR NR 316,833
200,000 (Barnes Hospital),
6.550% 12/15/97.... NR AAA 201,154
(Christian Health),
Series A, (FGIC
Insured):
300,000 6.400% 02/15/00...... Aaa AAA 315,654
600,000 6.600% 02/15/02...... Aaa AAA 655,206
700,000 (Sisters of Mercy),
Series E,
7.000% 06/01/99.... Aa1 AA+ 733,201
1,500,000 (SSM Health Care),
Series AA, (MBIA
Insured),
5.400% 06/01/00.... Aaa AAA 1,544,910
1,000,000 (St. Louis Childrens
Hospital), (MBIA
Insured),
5.400% 05/15/99.... Aaa AAA 1,023,380
Springfield,
Missouri, School
District Number
R-12, Series A,
(FGIC Insured):
300,000 6.400% 03/01/03...... Aaa AAA 319,431
300,000 6.400% 03/01/04...... Aaa AAA 318,549
400,000 Springfield,
Missouri,
Waterworks Revenue,
Series B,
4.750% 05/01/02.... Aa A+ 407,072
St. Louis County,
Missouri, GO:
600,000 Pattonville R-3
School District,
(FGIC Insured),
5.700% 02/01/01.... Aaa AAA 628,086
700,000 Rockwood School
District Number
R-6, 5.000%
02/01/03........... Aa NR 721,084
300,000 St. Louis, Missouri,
School District,
(FGIC Insured),
6.500% 04/01/03.... Aaa AAA 327,702
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 17
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSOURI -- (CONTINUED)
University of
Missouri,
University Revenue:
$ 200,000 Series A, (AMBAC
Insured),
6.100% 11/01/97.... Aaa AAA $ 200,398
200,000 Series B, (AMBAC
Insured),
6.100% 11/01/97.... Aaa AAA 200,398
------------
16,047,269
------------
MISSISSIPPI -- 1.5%
10,000,000 Adams County,
Mississippi,
Pollution Control
Revenue Refunding,
(International
Paper Company),
Series A,
5.500% 12/01/05.... A3 A- 10,467,800
2,370,000 Mississippi Higher
Education, Series
C,
6.400% 01/01/03.... NR A 2,492,363
------------
12,960,163
------------
NEBRASKA -- 0.2%
1,000,000 Nebraska Public Power
District Revenue,
Power Supply
System,
5.300% 01/01/02.... A1 A+ 1,036,450
600,000 Omaha Public Power
District, Nebraska,
Electric Revenue,
Series D,
4.750% 02/01/04.... Aa2 AA 610,140
------------
1,646,590
------------
NEVADA -- 2.2%
Clark County, Nevada,
GO:
6,500,000 (FGIC Insured),
6.900% 09/01/99.... Aaa AAA 6,846,385
300,000 School District GO,
Series A, (MBIA
Insured),
6.500% 06/01/02.... Aaa AA 324,090
2,500,000 Series B, (AMBAC
Insured),
6.500% 06/01/10.... Aaa AAA 2,773,500
1,500,000 Clark County, Nevada,
Improvement and
Refunding, (FSA
Insured),
6.100% 10/01/02.... Aaa AAA 1,609,830
Nevada State,
Municipal GO:
1,000,000 (BD Bank Project),
Series 39-A,
6.000% 07/01/01.... NR AA 1,060,750
1,000,000 Series A,
5.800% 05/01/00.... Aa2 AA 1,040,700
1,000,000 ETM,
7.000% 01/01/03.... Aaa AAA 1,063,720
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEVADA -- (CONTINUED)
$ 2,910,000 Reno, Nevada, GO,
Series A, (FGIC
Insured),
5.300% 04/01/05.... Aaa AAA $ 3,030,707
1,500,000 Washoe County,
Nevada, GO, Series
B, (AMBAC Insured),
5.000% 09/01/01.... Aaa AAA 1,540,710
------------
19,290,392
------------
NEW JERSEY -- 3.0%
1,100,000 Bergen County, New
Jersey, Utilities
Authority, Water
Pollution Control
Revenue, Series B,
5.500% 12/15/02.... Aaa AAA 1,161,457
3,490,000 Middlesex County, New
Jersey, General
Improvement, GO,
4.875% 08/01/07.... Aaa AA+ 3,576,133
New Jersey State, GO:
3,000,000 5.125% 01/01/02...... Aa1 AA+ 3,103,320
5,000,000 Series D,
5.500% 02/15/04.... Aa1 AA+ 5,308,300
New Jersey State,
Transportation
Trust Fund
Authority,
Transportation
System:
1,100,000 Series A, (AMBAC
Insured),
5.200% 12/15/00.... AAA AAA 1,138,104
Series B, (MBIA
Insured):
2,000,000 5.000% 06/15/02...... Aaa AAA 2,059,840
7,030,000 5.000% 06/15/04...... Aaa AAA 7,255,804
University of
Medicine and
Dentistry, New
Jersey, Revenue
Bonds, Series C:
1,000,000 7.000% 12/01/00...... A3 AA- 1,077,200
1,000,000 7.000% 12/01/01...... A3 AA- 1,080,160
------------
25,760,318
------------
NEW MEXICO -- 0.9%
1,400,000 Albuquerque, New
Mexico, GO, Series
A,
4.700% 07/01/00.... Aa3 AA 1,422,302
New Mexico Mortgage
Financial
Authority, AMT,
(Single Family
Mortgage Project):
1,355,000 Series C-2,
5.950% 07/01/17.... Aaa NR 1,387,235
2,175,000 Series E-2,
5.600% 07/01/17.... NR AAA 2,164,495
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 18
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW MEXICO -- (CONTINUED)
$ 2,000,000 New Mexico State, GO,
(Capital Projects),
5.250% 09/01/03.... Aa1 AA+ $ 2,049,320
600,000 New Mexico State,
Severance Tax,
Series B,
5.100% 07/01/00.... Aa2 AA 609,906
-----------
7,633,258
-----------
NEW YORK -- 2.6%
3,000,000 Municipal Assistance
Corporation for the
City of New York,
Series J,
5.750% 07/01/03.... Aa2 AA- 3,208,350
5,000,000 New York, New York,
Series E, (MBIA
Insured),
5.800% 05/15/05.... Aaa AAA 5,349,600
1,100,000 New York State,
Serial Bonds, GO,
6.700% 11/15/99.... A2 A 1,159,862
New York State
Dormitory Authority
Revenue:
5,000,000 City University,
Series B,
5.250% 07/01/06.... Baa1 BBB+ 5,126,550
7,000,000 State University
Educational
Facilities, Series
A,
5.400% 05/15/04.... BAA1 BBB+ 7,259,630
-----------
22,103,992
-----------
NORTH CAROLINA -- 2.3%
Mecklenburg County,
North Carolina, GO:
3,000,000 Public Improvement,
6.200% 01/01/04.... AAA AAA 3,255,150
8,000,000 Revenue Refunding,
5.750% 03/01/03.... Aaa AAA 8,515,120
4,000,000 North Carolina
Medical Care
Community, Health
Care Facilities
Revenue, (Carolina
Medicorp Project),
5.125% 05/01/16.... Aa3 AA 3,913,080
2,500,000 Pitt County, North
Carolina, Revenue
Bonds, (Pitt County
Memorial Hospital),
5.250% 12/01/21.... Aa AA- 2,436,350
1,950,000 Wake County, North
Carolina, Special
Obligations, (Solid
Waste Management
Projects),
5.000% 02/01/05.... Aa2 AA 2,020,083
-----------
20,139,783
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- 0.8%
$ 1,000,000 Cleveland, Ohio, GO,
(AMBAC Insured),
4.900% 09/01/04.... Aaa AAA $ 1,025,910
900,000 Columbus, Ohio, GO,
Series D,
4.750% 09/15/00.... Aaa AAA 917,883
1,325,000 Ohio State, Higher
Education
Facilities, (Higher
Education
Facility-Case
Western), Series A,
6.000% 07/01/05.... Aa3 AA 1,455,579
3,000,000 Ohio State, Highway
Capital
Improvements, GO,
Series B,
5.000% 05/01/07.... Aa1 AAA 3,106,170
300,000 Ohio State, Water
Development
Authority Revenue,
(Pure Water
Project), Series I,
(MBIA Insured),
7.000% 06/01/99.... Aaa AAA 314,718
-----------
6,820,260
-----------
OKLAHOMA -- 0.8%
5,000,000 Tulsa County,
Oklahoma,
Industrial
Authority, Health
Care Revenue, (St.
Francis Hospital
Inc.), Series B,
5.150% 12/15/18.... NR AA 5,130,400
2,000,000 Tulsa, Oklahoma, GO,
5.125% 05/01/02.... Aa2 AA 2,071,900
-----------
7,202,300
-----------
OREGON -- 0.7%
3,000,000 Multnomah County,
Oregon, School
District Number 1J-
Portland,
5.50% 06/01/05..... Aa AA- 3,200,580
1,300,000 Portland, Oregon,
Sewer System
Revenue, Series A,
5.450% 06/01/03.... A1 A+ 1,370,421
1,300,000 Washington County,
Oregon, Sewer
Revenue, Series A,
(AMBAC Insured),
5.300% 10/01/01.... Aaa AAA 1,350,726
-----------
5,921,727
-----------
PENNSYLVANIA -- 2.6%
2,890,000 Erie, Pennsylvania,
Water Authority,
Water Revenue,
7.125% 12/01/11.... NR BBB- 3,198,363
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 19
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Geisinger Authority,
Pennsylvania,
Health Systems
Revenue, Series A:
$ 4,000,000 5.300% 07/01/99...... Aa2 AA $ 4,078,760
2,000,000 6.000% 07/01/01...... Aa AA 2,106,960
1,000,000 Pennsylvania
Intergovernment
Cooperative
Authority, Special
Tax Revenue,
Philadelphia
Funding Program,
(FGIC Insured),
7.000% 06/15/05.... Aaa AAA 1,161,940
2,500,000 Philadelphia,
Pennsylvania,
Industrial
Development
Authority,
Industrial
Development Revenue
Refunding, (Ashland
Oil Inc. Project),
5.700% 06/01/05.... Baa1 NR 2,625,425
9,000,000 Philadelphia,
Pennsylvania, Water
and Wastewater
Systems, (FGIC
Insured),
5.500% 06/15/03.... Aaa AAA 9,485,010
-----------
22,656,458
-----------
RHODE ISLAND -- 0.5%
800,000 Pawtucket, Rhode
Island, GO, (FGIC
Insured),
5.250% 04/15/01.... Aaa AAA 826,296
3,000,000 Rhode Island State,
Consolidated
Capital Development
Loan, Series A,
5.400% 08/01/06.... A1 AA- 3,121,860
-----------
3,948,156
-----------
SOUTH CAROLINA -- 2.0%
3,210,000 Greenville Hospital
System, South
Carolina, Hospital
Facilities Revenue,
Series B,
5.500% 05/01/08.... Aa3 AA- 3,359,361
Piedmont Municipal
Power Agency, South
Carolina, Electric
Revenue, (FGIC
Insured):
2,580,000 Series A,
6.1250% 01/01/03... Aaa AAA 2,780,234
5,160,000 Series B,
6.000% 01/01/07.... Aaa AAA 5,641,996
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 2,000,000 Richland County,
South Carolina,
Solid Waste
Disposal Facilities
Revenue, (Union
Camp Corporation
Project), Series A,
6.750% 05/01/22.... A1 A- $ 2,163,620
3,000,000 Spartanburg County,
South Carolina,
Health Services
District Inc.,
Hospital Revenue,
Series B, (MBIA
Insured),
5.125% 04/15/17.... Aaa AAA 2,908,110
500,000 York County, South
Carolina,
Industrial
Development
Revenue, Exempt
Facility, (Hoechst
Celanese
Corporation
Project), AMT,
5.700% 01/01/24.... A2 A+ 501,550
-----------
17,354,871
-----------
TENNESSEE -- 1.5%
4,500,000 Mcminn County,
Tennessee,
Industrial
Development Board,
Solid Waste
Disposal Revenue,
(Recycling
Facility-Calhoun
Newsprint),
7.400% 12/01/22.... Baa1 BBB 5,009,040
Metropolitan
Government,
Nashville and
Davidson County,
Tennessee:
600,000 Electric Revenue,
Series B,
5.625% 05/15/03.... Aa AA 639,930
1,000,000 Health and
Educational
Facilities Board
Revenue, Refunding
and Improvement,
(Meharry Medical
College Project),
(AMBAC Insured),
6.000% 12/01/08.... Aaa AAA 1,111,890
5,000,000 Tennessee State, GO,
Series A,
7.000% 03/01/05.... Aaa AA+ 5,815,100
-----------
12,575,960
-----------
TEXAS -- 11.9%
2,175,000 Aldine, Texas,
Independent School
District, Capital
Appreciation, (PSFG
Insured),
5.45% 02/15/07+.... Aaa AAA 1,381,538
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 20
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Austin, Texas,
Utilities Systems
Revenue:
Series A, (AMBAC
Insured):
$ 500,000 6.500% 11/15/03...... Aaa AAA $ 547,940
5,000,000 8.000% 11/15/16...... AAA AAA 5,632,350
2,555,000 Series 2,
5.600% 10/01/03.... AAA AAA 2,723,809
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 1,053,720
900,000 Colorado River,
Texas, Municipal
Water District,
Water Revenue,
(AMBAC Insured),
5.000% 01/01/04.... Aaa AAA 923,319
8,000,000 Conroe, Texas,
Independent School
District, GO, (PSFG
Insured),
5.250% 02/15/21.... Aaa AAA 7,862,080
Crowley, Texas,
Independent School
District, GO, (PSFG
Insured):
5,930,000 5.125% 08/01/25...... Aaa AAA 5,745,874
6,285,000 5.125% 08/01/26...... Aaa AAA 6,077,909
2,400,000 Dallas, Texas, Water
Works and Sewer
Revenue,
4.500% 04/01/00.... Aa2 AA 2,422,608
900,000 Garland, Texas, GO,
5.500% 08/15/99.... Aa2 AA 925,254
1,000,000 Gulf Coast, Texas,
Industrial
Development
Authority,
(Champion
International
Corporation
Project),
7.000% 04/01/04.... Baa1 BBB 1,020,050
Harris County, Texas,
Health Facilities
Development
Authority,
Hospital Revenue
Refunding:
1,000,000 (Memorial Hospital
Systems Project),
Series A,
4.875% 06/01/05.... Aaa AAA 1,009,170
2,350,000 (Texas Childrens
Hospital Project),
(MBIA Insured),
6.000% 10/01/05.... Aaa AAA 2,568,198
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 1,245,000 Houston, Texas, GO,
6.800% 03/01/01.... Aa3 AA- $ 1,316,326
2,500,000 Houston, Texas, Water
Works and Sewer
Revenue, Junior
Lien, Series A,
(MBIA Insured),
5.800% 12/01/04.... Aaa AAA 2,714,550
1,500,000 Irving, Texas,
Independent School
District, Capital
Appreciation
Refunding, GO,
(PSFG Insured),
5.35% 02/15/02+.... Aaa AAA 1,233,045
7,520,000 Lower Colorado River
Authority, Texas,
Revenue Refunding,
Junior Lien, (Fifth
Supply), (AMBAC
Insured),
5.300% 01/01/06.... Aaa AAA 7,840,954
5,000,000 North Central Texas
Health Facilities
Development
Corporation, Health
Facilities Revenue,
(Presbyterian
Healthcare), Series
B, (MBIA Insured),
5.500% 06/01/16.... Aaa AAA 5,031,700
San Antonio, Texas,
Electric and Gas
Revenue Refunding:
1,000,000 5.200% 02/01/01...... Aa1 AA 1,030,140
1,100,000 5.200% 02/01/01...... Aa1 AA 1,133,154
San Antonio, Texas,
Water Revenue,
Prerefunded:
130,000 (FGIC Insured),
5.900% 05/15/00.... NR AAA 135,728
2,870,000 Unrefunded Balance,
5.900% 05/15/00.... NR AAA 2,997,887
2,000,000 Southwest Higher
Education Authority
Inc., Revenue
Refunding,
(Southern
Methodist), (FSA
Insured),
5.125% 10/01/16.... Aaa AAA 1,967,340
5,000,000 Tarrant County,
Texas, Health
Facilities
Development
Corporation, Health
Systems Revenue,
Texas Health
Resources Systems,
Series A, (MBIA
Insured),
5.250% 02/15/17.... Aaa AAA 4,875,100
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 21
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Texas A&M University
Revenue Bonds:
$ 1,880,000 5.000% 05/15/02...... Aa2 AA $ 1,937,754
2,200,000 5.950% 05/15/05...... Aa2 AA 2,406,822
Texas Municipal Power
Agency, Revenue
Bonds, (MBIA
Insured):
7,210,000 5.750% 09/01/12...... Aaa AAA 7,675,406
4,790,000 5.750% 09/01/12...... Aaa AAA 5,099,195
900,000 Texas State, Texas
Public Finance
Authority, Series
B,
5.000% 10/01/01.... Aa2 AA 927,612
Texas State, Revenue
Refunding:
900,000 Series A,
5.700% 10/01/03.... Aa2 AA 965,061
1,100,000 Series C,
5.350% 04/01/01.... Aa2 AA 1,142,262
1,960,000 Series D,
5.500% 08/01/06.... Aa2 AA 2,097,043
5,500,000 Texas State, Public
Finance Authority,
Building Revenue,
(MBIA Insured),
6.600% 02/01/00.... Aaa AAA 5,804,205
1,000,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
Series B-4, AMT,
6.100% 12/01/06.... Aa AA 1,054,940
University of Texas:
Permanent
University Fund:
2,000,000 5.000% 07/01/01...... Aaa AAA 2,059,100
300,000 6.700% 07/01/05...... AAA AAA 330,897
1,100,000 University Revenue
Bonds, General
Tuition,
5.100% 08/15/99.... Aa1 AA+ 1,122,198
------------
102,792,238
------------
UTAH -- 0.7%
Cache County, Utah,
School District,
Refunding, Utah
School Board
Guaranty Program:
2,995,000 5.500% 06/15/06...... NR AAA 3,199,708
2,145,000 5.500% 06/15/07...... NR AAA 2,296,372
300,000 Davis County, Utah,
School District,
(FGIC Insured),
6.450% 06/01/02.... Aaa AAA 325,551
------------
5,821,631
------------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- 7.2%
$ 1,620,000 Chesapeake Bay Bridge
and Tunnel
District, Virginia,
Revenue, General
Resolution, (FGIC
Insured),
5.100% 07/01/01.... Aaa AAA $ 1,670,026
6,170,000 Chesapeake, Virginia,
GO,
5.000% 12/01/03.... Aa3 AA 6,398,105
4,000,000 Chesterfield County,
Virginia, Refunding
and Improvement,
GO,
6.250% 07/15/05.... Aaa AA+ 4,323,360
6,000,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco
Corporation
Project),
5.900% 03/01/05.... A1 A 6,536,460
Fairfax County,
Virginia, GO:
1,100,000 Series A,
4.700% 06/01/00.... Aaa AAA 1,118,139
Series C:
8,000,000 5.600% 10/01/04...... Aaa AAA 8,278,480
5,790,000 5.000% 05/01/05...... Aaa AAA 6,004,230
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 1,599,300
2,500,000 Newport News,
Virginia, GO,
Series B,
5.400% 11/01/06.... Aa AA- 2,644,050
1,000,000 Norfolk, Virginia,
GO,
5.250% 06/01/01.... A1 AA 1,036,340
1,500,000 Norfolk, Virginia,
Industrial
Development
Authority,
Industrial
Development
Revenue, (Sentara
Hospitals), Series
A,
4.600% 11/01/04.... Aa2 AA 1,490,100
1,500,000 Prince William
County, Virginia,
Services Authority,
Water and Sewer
Systems Revenue,
(FGIC Insured),
5.000% 07/01/21.... Aaa AAA 1,422,030
3,000,000 Virginia Beach,
Virginia, GO,
5.100% 07/15/05.... Aa2 AA 3,120,990
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 22
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 2,600,000 Virginia College
Building Authority,
Virginia
Educational
Facilities Revenue,
(University of
Richmond Project),
5.625% 11/01/02.... Aa2 AA- $ 2,722,044
Virginia State,
Higher Educational
Institutions,
Series C:
1,500,000 5.900% 06/01/05...... Aaa AAA 1,596,645
1,100,000 5.900% 06/01/05...... Aaa AAA 1,168,882
Virginia State,
Public School
Authority Revenue:
Series A:
2,265,000 6.000% 01/01/00...... Aa AA 2,360,017
1,520,000 6.000% 01/01/00...... Aa AA 1,583,764
7,000,000 Series B,
5.250% 01/01/07.... Aa AA 7,289,520
-----------
62,362,482
-----------
WASHINGTON -- 6.9%
King County,
Washington, GO:
600,000 Series A,
5.250% 12/01/01.... Aa1 AA+ 623,832
2,500,000 Series C,
5.625% 06/01/02.... Aa1 AA+ 2,638,625
1,195,000 King County,
Washington, School
District Number
415-Kent, (FSA
Insured),
5.100% 06/01/04.... Aaa AAA 1,236,538
3,000,000 Pierce County,
Washington, School
District Number
003-Puyallup, GO,
(FGIC Insured),
5.000% 12/01/03.... Aaa AAA 3,096,150
Snohomish County,
Washington, School
District Number:
300,000 002-Everett, Series
A, (MBIA Insured),
6.800% 06/01/03.... Aaa AAA 324,129
1,500,000 103, (FGIC Insured),
5.150% 06/01/05.... Aaa AAA 1,556,640
6,750,000 South Columbia Basin,
IRR Dist,
5.750% 06/01/00.... Aa AA 7,021,553
400,000 Spokane, Washington,
GO,
8.500% 01/01/00.... Aa3 AA 437,420
1,000,000 Tacoma, Washington,
GO, Series A,
5.750% 07/01/02.... A1 A+ 1,057,690
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- (CONTINUED)
Tacoma, Washington,
Electric Systems
Revenue:
$ 800,000 (FGIC Insured),
5.500% 01/01/01.... Aaa AAA $ 831,504
2,500,000 Series B, (AMBAC
Insured),
5.900% 01/01/05.... Aaa AAA 2,669,250
600,000 Tacoma, Washington,
Sewer Revenue,
Series B, (FGIC
Insured),
5.500% 12/01/03.... Aaa AAA 635,280
Washington State, GO:
Series B:
1,000,000 6.550% 08/01/00...... Aa1 AA+ 1,064,900
500,000 6.300% 06/01/02...... Aa1 AA+ 534,975
3,500,000 Series R-92-A,
6.400% 09/01/03.... Aa AA 3,784,095
900,000 Series R-92-C,
5.600% 09/01/01.... Aa1 AA+ 945,063
900,000 Series R-93-A,
5.250% 10/01/00.... Aa1 AA+ 928,962
10,000,000 Series R-93-B,
5.125% 10/01/04.... Aa1 AA+ 10,402,300
Washington State
Public Power Supply
System, Revenue
Refunding: (Nuclear
Project No. 1),
Series A:
2,000,000 6.500% 07/01/03...... Aa1 AA- 2,163,880
1,000,000 5.500% 07/01/04...... Aaa AAA 1,051,660
(Nuclear Project No.
2), Series A:
3,500,000 6.200% 07/01/99...... Aa1 AA- 3,622,815
1,150,000 5.800% 07/01/07...... Aa AA 1,226,636
7,500,000 (Nuclear Project No.
2), Series C, (FGIC
Insured),
7.000% 07/01/01.... Aaa AAA 8,180,700
3,000,000 (Nuclear Project No.
3), Series B, (FSA
Insured),
5.400% 07/01/05.... Aaa AAA 3,138,870
600,000 Yakima County,
Washington, School
District No.
007-Yakima, GO,
(MBIA Insured),
5.500% 12/01/03.... Aaa AAA 635,280
-----------
59,808,747
-----------
WEST VIRGINIA -- 0.3%
2,000,000 West Virginia State,
Building Community
Lease Revenue,
(West Virginia
Regional Jail and
Correction), Series
A, (MBIA Insured),
6.700% 07/01/02.... Aaa AAA 2,166,400
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 23
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WISCONSIN -- 2.4%
$ 800,000 Milwaukee County,
Wisconsin,
(Corporate
Purpose), Series A,
5.000% 12/01/00.... A1 AA- $ 819,952
Milwaukee, Wisconsin,
GO:
600,000 Refunding,
5.700% 06/01/99.... Aa1 AA+ 616,572
300,000 Series BZ,
6.375% 06/15/03.... Aa1 AA+ 321,954
Milwaukee, Wisconsin,
Metropolitan Sewer
District, GO,
Series A:
300,000 7.000% 09/01/00...... Aa1 AA+ 323,523
400,000 6.700% 10/01/00...... Aa1 NR 428,752
5,000,000 6.700% 10/01/01...... Aa1 NR 5,452,300
1,000,000 6.000% 10/01/07...... Aa1 AA+ 1,107,010
3,000,000 5.500% 10/01/09...... Aa1 AA+ 3,201,210
3,070,000 Sun Praire,
Wisconsin, Area
School District,
Promissory Notes,
(FGIC Insured),
5.500% 04/01/03.... Aaa AAA 3,231,912
Wisconsin State, GO:
600,000 Series A,
5.750% 05/01/00.... Aa2 AA 623,886
300,000 Series D,
6.000% 05/01/00.... Aa2 AA 313,764
Wisconsin State,
Refunding, GO:
900,000 Series 1,
5.100% 11/01/01.... Aa2 AA 929,745
3,625,000 Series 2,
5.125% 11/01/08.... Aa2 AA 3,763,149
------------
21,133,729
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $813,021,310)......... 851,600,360
============
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUNDS -- 1.7%
(Cost $14,880,000)
14,880,000 AIM Tax-Exempt Fund....... $ 14,880,000
============
TOTAL INVESTMENTS
(Cost $827,901,310*).................. 100.3% 866,480,360
OTHER ASSETS AND
LIABILITIES (NET)..................... (0.3) (2,498,959)
----- ------------
NET ASSETS.............................. 100.0% $863,981,401
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
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
concentrations greater than 10% at September 30, 1997 (as a percentage of net
assets):
FGIC 10.6%
MBIA 10.5%
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 24
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.4%
ALABAMA -- 1.8%
$ 2,000,000 Birmingham, Alabama,
Refunding, GO,
Series B,
6.250% 04/01/12.... A1 AA $ 2,162,880
3,000,000 Butler County,
Alabama, Industrial
Development Board,
Solid Waste
Disposal Revenue,
(James River
Corporation
Project),
8.000% 09/01/28.... NR BBB- 3,387,750
2,000,000 Jefferson County,
Alabama, Warrants,
Sewer Revenue
Refunding, Series
A, (FGIC Insured),
5.625% 02/01/22.... Aaa AAA 2,037,620
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 1,078,420
-----------
8,666,670
-----------
ALASKA -- 4.7%
1,500,000 Alaska Student Loan
Corporation,
Student Loan
Revenue, Series A,
(AMBAC Insured),
5.250% 07/01/07.... Aaa AAA 1,529,700
Anchorage, Alaska,
Electric Utilities
Revenue Refunding,
Senior Lien, (MBIA
Insured):
1,000,000 8.000% 12/01/09...... Aaa AAA 1,292,260
7,000,000 Series B,
5.500% 02/01/26.... Aaa AAA 6,979,490
2,250,000 Anchorage, Alaska,
Telephone Utilities
Revenue Refunding,
Series A, (AMBAC
Insured),
4.500% 12/01/02.... Aaa AAA 2,257,087
1,000,000 North Slope Boro,
Alaska, Capital
Appreciation, GO,
Series A, (MBIA
Insured),
9.900% 06/30/06+... Aaa AAA 657,500
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ALASKA -- (CONTINUED)
$10,000,000 Valdez, Alaska,
Marine Term Revenue
Refunding, (BP
Pipeline Inc.
Project), Series B,
5.500% 10/01/28.... Aa2 AA $ 9,824,800
-----------
22,540,837
-----------
ARIZONA -- 2.5%
2,000,000 Maricopa County
Arizona, Unified
School District No.
93-Cave Creek, GO,
Series A,
(FGIC Insured),
5.900% 07/01/06.... Aaa AAA 2,129,340
4,000,000 Maricopa County
Arizona, Unified
School District No.
4-Mesa, Capital
Appreciation, GO,
Refunded,
(FGIC Insured),
5.300% 07/01/02+... Aaa AAA 3,240,480
Maricopa County,
Arizona, Unified
School District No.
48, (Scottsdale
Refunding), Series
B:
1,000,000 6.300% 07/01/04...... Aa AA 1,111,730
1,300,000 4.600% 07/01/11...... Aa2 AA 1,250,639
2,000,000 Salt River Project
Arizona Agriculture
Improvement and
Power District,
Arizona, Electric
System Revenue,
Series C,
6.250% 01/01/19.... Aa2 AA 2,140,480
5,000,000 Tucson and Pima
County, Arizona,
Industrial
Development
Authority, Single
Family Mortgage
Revenue, Capital
Appreciation,
Series 1983-A,
11.000% 12/01/14+.. AAA NR 2,033,250
-----------
11,905,919
-----------
ARKANSAS -- 1.0%
1,300,000 Arkansas State
Development Finance
Authority, Waste
Water Systems
Revenue, Revolving
Ln Fd, Series A,
5.700% 12/01/12.... NR AA 1,362,595
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 25
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ARKANSAS -- (CONTINUED)
$ 3,425,000 Blytheville,
Arkansas, Solid
Waste Recycling and
Sewer Treatment
Revenue, (Nucor
Corporation
Project),
6.375% 01/01/23.... A1 AA- $ 3,621,595
-----------
4,984,190
-----------
CALIFORNIA -- 2.5%
California State, GO:
1,000,000 7.100% 09/01/02...... A1 A+ 1,130,150
1,000,000 7.000% 08/01/04...... A1 A+ 1,157,100
4,000,000 (FGIC Insured),
5.000% 11/01/22.... Aaa AAA 3,786,600
1,000,000 Los Angeles,
California, Waste
Water Systems
Revenue Refunding,
Series C,
(MBIA Insured),
5.500% 06/01/14.... Aaa AAA 1,019,330
2,000,000 Metropolitan Water
District of
Southern
California,
Waterworks Revenue,
Series A,
(MBIA Insured),
5.750% 07/01/15.... Aaa AAA 2,095,600
2,595,000 San Francisco,
California, City
and County Airport
Commission,
International
Airport Revenue,
Second Series,
Issue 9B, (FGIC
Insured),
5.250% 05/01/13.... Aaa AAA 2,609,117
-----------
11,797,897
-----------
COLORADO -- 0.9%
1,500,000 Arapahoe County,
Colorado, Capital
Improvement,
Transportation,
Federal Highway
Revenue Bonds,
Series E-470,
6.900% 08/31/15.... Baa NR 1,769,100
2,500,000 Douglas County,
Colorado, Sales and
Use Tax Revenue,
(MBIA Insured),
5.500% 10/15/11.... Aaa AAA 2,588,125
-----------
4,357,225
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
CONNECTICUT -- 1.0%
$ 1,000,000 Connecticut State,
GO, Series A,
5.300% 05/15/10.... Aa3 AA- $ 1,027,760
Connecticut State
Housing Finance
Authority Revenue,
(Housing Mortgage
Finance Program):
1,750,000 Series A,
6.100% 05/15/13.... Aa AA 1,818,775
1,635,000 Series B,
6.700% 11/15/12.... Aa AA 1,750,774
-----------
4,597,309
-----------
DISTRICT OF COLUMBIA -- 1.7%
4,000,000 District of Columbia,
Hospital Revenue
Refunding,
(Medlantic
Healthcare Group),
Series A, MBIA
Insured),
5.375% 08/15/15.... Aaa AAA 3,974,760
3,905,000 District of Columbia,
Revenue Refunding,
(Howard
University), (MBIA
Insured),
5.750% 10/01/12.... Aaa AAA 4,096,579
-----------
8,071,339
-----------
FLORIDA -- 8.5%
1,000,000.. Broward County,
Florida, Refunded,
GO, Series C,
6.200% 01/01/07 Aa2 AA 1,079,180
Florida State Board
of Education,
Capital Outlay,
Public Education,
GO, Series A:
1,655,000 6.600% 06/01/04...... AAA AAA 1,805,224
1,000,000 5.500% 06/01/14...... Aa2 AA+ 1,024,150
3,000,000 5.000% 01/01/17...... Aa2 AA+ 2,895,480
2,000,000 Florida State
Department, General
Services Division,
Facilities
Management Revenue
Refunding, (Florida
Facilities Pool),
Series B, (AMBAC
Insured), Series B,
5.700% 09/01/20.... Aaa AAA 2,050,460
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 26
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 3,400,000 Florida State
Division, Board
Finance Department,
General Services
Revenue, Department
National Resources,
(Preservation
2000), Series A,
(AMBAC Insured),
6.700% 07/01/05.... Aaa AAA $ 3,755,198
3,500,000 Hillsborough County,
Florida, Industrial
Development
Authority,
Pollution Control
Revenue Refunding,
(Tampa Electric
Project),
8.000% 05/01/22.... Aa3 AA 4,053,000
3,000,000 Jacksonville,
Florida, PCR,
Refunding,
(Anheuser-Busch
Companies Project),
5.700% 08/01/31.... A1 AA- 3,060,510
1,000,000 Martin County,
Florida, Industrial
Development
Authority Revenue,
(Indiantown
Cogeneration
Project), AMT,
Series A,
7.875% 12/15/25.... Baa3 BBB- 1,157,850
1,000,000 North Broward
Hospital District,
Florida, Hospital
Revenue Refunding,
(MBIA Insured),
6.250% 01/01/06.... AAA AAA 1,093,300
Orlando, Florida,
Community Water and
Electric Utilities
Revenue Refunding:
1,500,000 Series A,
5.000% 10/01/20.... Aa AA- 1,415,850
1,200,000 Series D,
6.750% 10/01/17.... Aa AA- 1,434,624
1,000,000 Orlando and Orange
County Expressway
Authority, Florida
Expressway Revenue,
Junior Lien,
(FGIC Insured),
6.500% 07/01/10.... Aaa AAA 1,158,570
12,115,000 Polk County, Florida,
Industrial
Development
Authority, Solid
Waste Disposal
Facilities Revenue,
(Tampa Electric
Company Project),
5.850% 12/01/30.... Aa2 AA 12,404,306
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 2,000,000 South Broward,
Florida, Hospital
District Revenue
Refunding, (FSA
Insured),
5.500% 05/01/28.... Aaa AAA $ 1,973,660
-----------
40,361,362
-----------
GEORGIA -- 7.5%
1,100,000 Atlanta, Georgia, GO,
5.600% 12/01/11.... Aa3 AA 1,153,317
1,000,000 Cartersville,
Georgia,
Development
Authority Revenue,
Sewer Facilities,
(Anheuser Busch),
6.125% 05/01/27.... A1 A+ 1,039,740
2,000,000 Coweta County,
Georgia, School
System, GO,
6.300% 08/01/11.... A A 2,162,460
1,000,000 Dalton, Georgia,
Utilities Revenue,
Combined Revenue,
(MBIA Insured),
4.450% 01/01/03.... Aaa AAA 1,005,430
2,000,000 De Kalb County,
Georgia, School
District, GO,
Series A,
6.250% 07/01/09.... Aa AA 2,271,500
4,750,000 Fulco, Georgia,
Hospital Authority
Revenue,
Anticipation
Certificates,
(Saint Joseph's
Hospital),
5.500% 10/01/18.... A3 A 4,760,023
3,000,000 Georgia State,
Refunding, GO,
Series A,
6.250% 03/01/06.... Aaa AAA 3,368,910
1,650,000 Gwinnett County,
Georgia,
Certificates of
Participation,
Water and Sewer,
8.600% 08/01/03.... Aaa AAA 2,005,773
Metropolitan Atlanta
Rapid Transit
Authority (MARTA),
Georgia, Sales Tax
Revenue Refunding:
2,080,000 Series M,
6.350% 07/01/04.... A1 AA- 2,255,573
Series P,
(AMBAC Insured):
1,000,000 6.100% 07/01/05...... Aaa AAA 1,104,350
1,000,000 6.000% 07/01/04...... Aaa AAA 1,091,300
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 27
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 2,000,000 Monroe County,
Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation),
Series A,
6.800% 01/01/11.... A3 A+ $ 2,327,380
Savannah, Georgia,
Hospital Authority,
Revenue Refunding
and Improvement:
3,000,000 (Candler Hospital
Project),
7.000% 01/01/23.... Ba BB 3,153,990
2,000,000 (St. Joseph's
Hospital Project),
6.125% 07/01/12.... A NR 2,127,100
2,690,000 Union County,
Georgia, Housing
Authority,
Multi-family
Housing Revenue
Refunding, (Hidden
Lake Apartments),
Series A, (FHA
Insured/FNMA
Collateral),
7.125% 12/01/25.... Aaa NR 2,897,506
3,000,000 White County,
Georgia, Industrial
Development
Authority Revenue
Refunding, (Clark-
Schwebel Fiber
Glass Company
Project),
6.850% 06/01/10.... NR BBB+ 3,190,620
-----------
35,914,972
-----------
HAWAII -- 2.0%
1,900,000 Hawaii State
Department of
Budget and Finance,
Special Purpose
Mortgage Revenue,
(Hawaiian Electric
Company and
Subsidiaries),
(MBIA Insured),
6.500% 12/01/22.... Aaa AAA 2,065,794
3,000,000 Hawaii State, GO,
Series CN,
(FGIC Insured),
6.250% 03/01/04.... Aaa AAA 3,288,030
1,500,000 Honolulu, Hawaii,
City and County,
Refunding and
Improvement, GO,
Series B,
8.000% 10/01/10.... Aa AA 1,921,440
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
HAWAII -- (CONTINUED)
$ 2,100,000 Maui County, Hawaii,
Refunding, GO,
(FGIC Insured),
5.000% 09/01/03.... Aaa AAA $ 2,164,953
-----------
9,440,217
-----------
ILLINOIS -- 5.4%
3,385,000 Chicago, Illinois,
Metropolitan Water
Reclamation
District, (Greater
Chicago), Capital
Improvement Bonds,
6.900% 01/01/07.... Aa2 AA 3,935,502
Chicago, Illinois,
O'Hare
International
Airport:
3,000,000 Revenue Refunding,
Second Lien, Series
C,
(MBIA Insured),
5.000% 01/01/18.... Aaa AAA 2,856,600
1,500,000 Special Facilities
Revenue Refunding,
(American Airlines
Inc. Project),
8.200% 12/01/24.... Baa2 BB+ 1,804,095
2,000,000 Chicago, Illinois,
Park District, GO,
(MBIA Insured),
5.500% 01/01/16.... Aaa AAA 2,019,880
2,000,000 Cook County,
Illinois, Capital
Improvement, GO,
(FGIC Insured),
5.900% 11/15/16.... Aaa AAA 2,105,920
1,000,000 Cook County,
Illinois, Forest
Preserve District,
(Zoo), GO, (MBIA
Insured),
5.800% 11/01/16.... Aaa AAA 1,037,210
1,000,000 Elgin, Illinois, GO,
5.750% 01/01/08.... Aa2 NR 1,030,940
1,800,000 Illinois Educational
Facilities
Authority Reserves,
(NorthWestern
University),
5.375% 12/01/21.... Aa1 AA 1,769,958
1,000,000 Illinois State
Development Finance
Authority, PCR,
Refunding, (Edison
Company Project),
Series D,
(AMBAC Insured),
6.750% 03/01/15.... Aaa AAA 1,120,520
2,000,000 Illinois State, GO,
(MBIA Insured),
6.000% 02/01/16.... Aaa AAA 2,118,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 28
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 1,500,000 Illinois State Sales
Tax Revenue
Refunding, Series
V,
6.375% 06/15/17.... A1 AAA $ 1,632,810
1,250,000 Rosemont, Illinois,
GO, Series A,
(FGIC Insured),
6.750% 02/01/08.... Aaa AAA 1,359,300
2,680,000 Southern Illinois
University Revenue,
Capital
Appreciation,
Housing and
Auxilary Facilities
Systems, (MBIA
Insured),
0.000% 04/01/06+... Aaa AAA 1,783,111
1,000,000 Waukegan, Illinois,
GO, Series A,
(FGIC Insured),
5.800% 11/15/03.... Aaa AAA 1,074,400
-----------
25,648,746
-----------
INDIANA -- 2.3%
2,500,000 Franklin, Indiana,
Economic
Development Revenue
Refunding, (Hoover
Universal Inc.
Project
Guaranteed),
6.100% 12/01/04.... A2 A 2,710,425
Hamilton South
Eastern Indiana,
North Delaware
School Building
Corporation, First
Mortgage, (AMBAC
Insured):
1,000,000 5.000% 07/15/07...... Aaa AAA 1,024,840
1,000,000 5.100% 07/15/09...... Aaa AAA 1,016,240
1,000,000 Hammond, Indiana,
Pollution Control
Revenue, (Stauffer
Chemical Project),
8.000% 11/01/12.... A2 NR 1,088,410
1,000,000 Indiana Health
Facility, Financing
Authority, Hospital
Revenue, (Clarian
Health Partners,
Incorporated),
Series A,
5.500% 02/15/16.... Aa3 AA 1,002,450
2,000,000 Indianapolis,
Indiana, Airport
Authority, Special
Facilities Revenue,
(Federal Express
Corporation
Project),
7.100% 01/15/17.... Baa2 BBB 2,236,640
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
INDIANA -- (CONTINUED)
$ 2,000,000 Saint Joseph County,
Indiana,
Educational
Facilities Revenue,
University of Notre
Dame, (Du Lac
Project),
5.500% 03/01/26.... Aaa NR $ 2,007,780
-----------
11,086,785
-----------
KANSAS -- 0.9%
2,000,000 Kansas City, Kansas,
Utilities System
Revenue Refunding
and Improvement,
(FGIC Insured),
6.250% 09/01/14.... Aaa AAA 2,200,240
2,000,000 Kansas State,
Department of
Transportation,
Highway Revenue,
Series A,
6.000% 09/01/07.... Aa AA 2,155,760
-----------
4,356,000
-----------
KENTUCKY -- 0.2%
1,000,000 Kentucky State
Turnpike Authority,
Economic
Development,
Revenue Refunding,
(Revitalization
Projects),
(AMBAC Insured),
5.500% 07/01/08.... Aaa AAA 1,066,850
-----------
MAINE -- 0.2%
1,000,000 Maine State, Health
and Higher
Educational
Facilities
Authority Revenue,
Series B, (AMBAC
Insured),
5.500% 07/01/16.... Aaa AAA 1,006,360
-----------
MASSACHUSETTS -- 3.4%
3,675,000 Massachusetts Bay
Transportation
Authority, General
Transportation
Systems, Series A,
5.750% 03/01/18.... A1 A+ 3,766,067
Massachusetts State,
Consolidated
Loan, GO:
2,500,000 Series A,
(MBIA Insured),
5.750% 02/01/13.... Aaa AAA 2,712,925
2,000,000 Series B,
(FGIC Insured),
5.500% 06/01/10.... Aaa AAA 2,089,720
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 29
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MASSACHUSETTS -- (CONTINUED)
$ 7,400,000 Massachusetts State
Port Authority,
Revenue Bonds,
Special Facilities,
(Bosfuel Project),
(MBIA Insured),
5.750% 07/01/39.... Aaa AAA $ 7,455,870
-----------
16,024,582
-----------
MICHIGAN -- 2.0%
1,750,000 Byron Center,
Michigan, Public
Schools, GO, (MBIA
Insured),
5.970% 05/01/15.... Aaa AAA 1,850,468
1,000,000 Detroit, Michigan,
Refunding, Series B,
6.375% 04/01/07.... Baa2 BBB 1,088,780
1,250,000 Kalamazoo, Michigan,
City School
District,
Refunding, GO,
(FGIC Insured),
5.650% 05/01/14.... Aaa AAA 1,296,937
1,000,000 Lakeshore, Michigan,
Public Schools, GO,
(MBIA Insured),
5.750% 05/01/15.... Aaa AAA 1,043,390
1,000,000 Michigan State,
Environmental
Protection
Program, GO,
6.250% 11/01/12.... Aa2 AA 1,133,550
2,000,000 Michigan State
Hospital Finance
Authority, Hospital
Revenue, (Holland
Community
Hospital),
(AMBAC Insured),
5.625% 01/01/28.... Aaa AAA 2,013,900
1,000,000 Michigan State Trunk
Line, Series A,
(FGIC Insured),
5.625% 11/15/14.... Aaa AAA 1,027,580
-----------
9,454,605
-----------
MINNESOTA -- 0.2%
1,000,000 Minneapolis,
Minnesota,
Refunding,
(Laurel Village),
5.750% 09/01/10.... Aaa AAA 1,042,030
-----------
MISSISSIPPI -- 1.6%
5,000,000 Adams County
Mississippi,
Pollution Control,
Revenue, Refunded,
(International
Paper Company),
Series A,
5.500% 12/01/05.... A3 A- 5,233,900
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSISSIPPI -- (CONTINUED)
$ 2,200,000 Mississippi, Hospital
Equipment and
Facilities
Authority Revenue,
Refunding and
Improvement, (North
Mississippi Health
Services), (AMBAC
Insured),
5.400% 05/15/04.... Aaa AAA $ 2,304,522
-----------
7,538,422
-----------
MISSOURI -- 2.1%
1,000,000 Independence,
Missouri, School
District, GO,
6.250% 03/01/11.... A3 NR 1,128,420
1,000,000 Kansas City,
Missouri, Variable
Purpose, GO,
6.000% 03/01/08.... Aa3 AA 1,050,240
Missouri State
Environmental
Improvement and
Energy Resource
Authority:
1,100,000 Environment
Improvement
Resources, (Union
Electric Company
Project), Series A,
(AMBAC Insured),
7.400% 05/01/20.... Aaa AAA 1,201,981
1,000,000 Water Pollution
Control, State
Revolving Fund,
(Kansas City),
Series A,
5.750% 01/01/16.... Aa1 NR 1,023,230
1,715,000 Missouri State
Housing,
Development
Commission,
Mortgage Revenue,
Single Family-
Homeowner Loan,
Series A,
6.100% 09/01/14.... NR AAA 1,759,796
1,625,000 Missouri State Water
Pollution Control,
Series A,
5.600% 04/01/15.... Aaa AAA 1,695,281
2,000,000 University of
Missouri, Health
Facilities Revenue,
(University of
Missouri Health
Systems), Series A,
(AMBAC Insured),
5.500% 11/01/16.... Aaa AAA 2,013,100
-----------
9,872,048
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 30
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEVADA --
2.4%
$ 1,400,000 Clark County, Nevada,
Refunding and
Improvement-
Transportation,
Series A, (MBIA
Insured),
6.000% 06/01/12.... Aaa AAA $ 1,492,624
Las Vegas-Clark
County, Nevada,
Library District,
GO, Series A, (FGIC
Insured):
1,000,000 6.800% 06/01/05...... Aaa AAA 1,095,720
1,000,000 6.000% 02/01/12...... Aaa AAA 1,052,970
2,000,000 Las Vegas, Nevada,
Water District,
Refunding and
Improvement-Water,
(MBIA Insured),
5.600% 09/01/05.... Aaa AAA 2,087,080
2,000,000 Nevada State, GO,
(Project No.
40-41-A),
6.375% 12/01/17.... NR AAA 2,129,820
2,500,000 Nevada State,
Series A,
6.000% 05/01/06.... Aa2 AA 2,636,475
1,000,000 Washoe County,
Nevada, School
District, Refunded,
(MBIA Insured),
5.800% 08/01/04.... Aaa AAA 1,062,590
-----------
11,557,279
-----------
NEW JERSEY -- 0.7%
3,000,000 New Jersey State,
Transportation
Trust Fund
Authority,
(Transportation
Systems Project),
Series B, (MBIA
Insured),
5.000% 06/15/04.... Aaa AAA 3,096,360
-----------
NEW MEXICO -- 0.4%
2,000,000 New Mexico State,
Mortgage Finance
Authority, AMT,
Single Family
Mortgage Program,
Series C-2,
6.050% 07/01/28.... Aaa NR 2,042,340
-----------
NEW YORK -- 4.4%
Municipal Assistance
Corporation for New
York City, New
York:
2,000,000 Series E,
5.200% 07/01/08.... Aa2 AA- 2,067,880
5,000,000 Series J,
5.500% 07/01/02.... Aa2 AA- 5,252,900
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
$ 5,000,000 New York, New York,
GO, Series L,
5.250% 08/01/00.... Baa1 BBB+ $ 5,119,900
1,000,000 New York State
Dormitory
Authority, Revenue
Bonds, (Canisius
College),
5.300% 07/01/08.... Aaa AAA 1,038,500
2,000,000 New York State Energy
Reshape and
Development
Authority,
Facilities Revenue
Refunding,
(Consolidated
Edison
Company - New
York), Series A,
6.100% 08/15/20.... A1 A+ 2,104,100
3,000,000 New York State Local
Government
Assistance
Corporation,
Series A,
6.000% 04/01/16.... A3 A+ 3,203,670
2,000,000 New York, New York,
City Municipal
Water Finance
Authority, Water
and Sewer Systems
Revenue, Series B,
5.750% 06/15/29.... A2 A- 2,033,400
-----------
20,820,350
-----------
NORTH CAROLINA -- 1.8%
1,950,000 North Carolina
Housing Finance
Agency, Refunding,
Multifamily
Revenue, Series B,
(FHA Insured),
6.900% 07/01/24.... Aa2 NR 2,071,661
2,500,000 North Carolina
Medical Care
Community, Health
Care Facilities
Revenue, (Carolina
Medicorp Project),
5.250% 05/01/26.... Aa3 AA 2,434,925
2,000,000 University of North
Carolina, Chapel
Hill, Hospital
Revenue,
5.000% 02/15/29.... Aa3 AA 1,882,440
2,400,000 Wake County, North
Carolina, GO,
4.500% 03/01/08.... Aaa AAA 2,386,104
-----------
8,775,130
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 31
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- 1.3%
$ 1,000,000 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight
Corporation
Project), Series F,
6.050% 10/01/09.... NR BBB- $ 1,056,140
1,000,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project),
Pre-refunded,
6.125% 12/01/13.... NR BBB+ 1,104,020
4,000,000.. Ohio State Highway
Capital
Improvements, GO,
Series B,
5.000% 05/01/07.... Aa1 AAA 4,141,560
-----------
6,301,720
-----------
OREGON -- 1.2%
2,000,000 Chemeketa, Oregon,
Community College
District, GO, (FGIC
Insured),
5.800% 06/01/12.... Aaa AAA 2,124,300
200,000 Oregon State, GO,
8.750% 10/01/97.... Aa2 AA 200,028
2,900,000 Portland, Oregon,
Sewer System
Revenue,
6.250% 06/01/15.... A1 A+ 3,221,929
-----------
5,546,257
-----------
PENNSYLVANIA -- 4.0%
3,000,000 Beaver County,
Pennsylvania,
Industrial
Development
Authority,
Pollution Control
Revenue
Refunding,(Pennsylvania
Power Company,
(Beaver Valley
Project), (AMBAC
Insured),
6.000% 09/01/28.... Aaa AAA 3,160,230
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 2,181,800
<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 Monroeville,
Pennsylvania,
Hospital Authority,
Hospital Revenue
Refunding, (Forbes
Health Systems),
5.750% 10/01/05.... A3 BBB+ $ 1,042,940
1,000,000 Philadelphia,
Pennsylvania, Gas
Works Revenue
Refunding, 14th
Series,
6.250% 07/01/08.... Baa1 BBB 1,063,580
Philadelphia,
Pennsylvania,
Hospital and Higher
Education
Facilities
Authority, Hospital
Revenue, (Frankford
Hospital Project),
Series A:
1,725,000 6.000% 06/01/14...... A3 BBB+ 1,766,314
3,125,000 6.000% 06/01/23...... A3 BBB+ 3,180,344
Philadelphia,
Pennsylvania,
Industrial
Development
Authority,
Industrial
Development Revenue
Refunding, (Ashland
Oil Inc. Project):
4,800,000 5.700% 06/01/05...... Baa1 NR 5,040,816
1,250,000 7.000% 01/01/11...... NR NR 1,387,013
-----------
18,823,037
-----------
RHODE ISLAND -- 0.6%
2,845,000 Rhode Island State,
Construction
Capital Development
Lane, GO, Series A,
(MBIA Insured),
5.600% 08/01/10.... Aaa AAA 2,983,495
-----------
SOUTH CAROLINA -- 1.7%
1,500,000 Greenville, South
Carolina,
Waterworks Revenue,
5.500% 02/01/22.... Aa1 AA 1,520,100
2,000,000 South Carolina, State
Housing Finance and
Development
Authority,
Homeownership
Mortgage Purchase,
Series A,
6.375% 07/01/16.... Aa AA 2,104,460
2,000,000 Spartanburg County,
South Carolina,
Solid Waste
Disposal Facilities
Revenue, (BMW
Project),
7.550% 11/01/24.... NR NR 2,249,940
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 32
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 2,000,000 York County, South
Carolina,
Industrial
Development
Revenue, Exempt
Facility, (Hoechst
Celanese
Corporation
Project), AMT,
5.700% 01/01/24.... A2 A+ $ 2,006,200
-----------
7,880,700
-----------
TENNESSEE -- 2.1%
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- 2,721,000
2,750,000 McMinn County,
Tennessee,
Industrial
Development Board,
Solid Waste
Recycling Facility
Revenue, (Calhoun
Newsprint Project),
AMT,
7.400% 12/01/22.... Baa1 BBB 3,061,080
2,735,000 Memphis-Shelby
County, Tennessee,
Airport Revenue
Refunded, (Federal
Express
Corporation),
6.375% 09/01/12.... Baa2 BBB 2,990,230
1,000,000 Memphis, Tennessee,
Refunded, GO,
5.200% 11/01/10.... Aa AA 1,023,220
-----------
9,795,530
-----------
TEXAS -- 10.3%
4,000,000 Alliance Airport
Authority Inc.,
Texas, Special
Facilities Revenue,
(American Airlines
Inc. Project), AMT,
7.000% 12/01/11.... Baa2 BB+ 4,620,400
Arlington Texas,
Independent School
District-D, GO,
(PSFG Insured):
2,000,000 6.500% 08/15/03...... Aaa Aa2 2,220,700
1,220,000 6.000% 02/15/04...... Aaa Aa2 1,294,847
2,470,000 Beaumont Texas,
Independent School
District, (PSFG
Insured), GO,
5.000% 02/15/17.... Aaa AAA 2,392,417
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 3,610,000 Bexar, Texas,
Metropolitan Water
District, Water
Works, (MBIA
Insured),
6.000% 05/01/15.... Aaa AAA $ 3,850,931
1,000,000 Brazos River
Authority, Texas,
Revenue Refunding,
(Houston Light and
Power Company
Project), Series B,
(MBIA Insured),
6.375% 04/01/12.... Aaa AAA 1,091,630
2,575,000 Carrollton-Farmers
Branch Independent
School District,
Texas, GO,
(PSFG Insured),
5.700% 02/15/17.... Aaa AAA 2,626,320
1,275,000 Cypress-Fairbanks
Independent School
District, Texas,
GO, (PSFG Insured),
5.750% 02/15/16.... Aaa AAA 1,307,997
1,750,000 Dallas County,
Texas, GO,
5.250% 08/15/16.... Aaa AAA 1,753,903
1,000,000 Dallas Independent
School District,
Texas, GO, (PSFG
Insured),
5.700% 08/15/12.... Aaa AAA 1,042,530
1,075,000 Denton, Texas,
Utilities Systems
Revenue Refunding,
Series A, (MBIA
Insured),
5.700% 12/01/10.... Aaa AAA 1,135,394
1,000,000 Fort Worth, Texas,
Water and Sewer
Revenue Refunding,
Series B,
6.400% 02/15/05.... Aa2 AA 1,058,820
2,000,000 Guadalupe-Blanco
River Authority,
Texas, Revenue
Refunding, (Sohio
Chemical Company),
6.550% 05/01/13.... Aa2 AA- 2,146,000
4,000,000 Harris County, Texas,
Health Facilities
Development
Authority, Hospital
Revenue Refunding,
(Memorial Hospital
Systems Project),
Series A,
4.875% 06/01/05.... Aaa AAA 4,036,680
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 33
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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 Harris County, Texas,
Permanent
Improvement
Bonds, GO,
6.250% 10/01/06.... Aa2 AA $ 1,061,570
4,000,000 Lower Neches Valley
Authority, Texas,
Industrial
Development
Corporation,
Revenue Refunding,
(Mobil Oil Refining
Project),
5.800% 05/01/22.... Aa2 AA 4,122,960
1,500,000 Lubbock, Texas,
Health Facilities
Development
Corporation,
Revenue Refunding,
(St. Joseph Health
System Project),
5.500% 07/01/14.... Aa3 AA 1,504,560
2,000,000 North Central Texas,
Health Facilities
Development
Corporation,
Hospital Revenue,
(Presbyterian
Healthcare),
Series A,
6.625% 06/01/11.... Aa3 NR 2,127,740
1,500,000 Plano, Texas, GO,
(FGIC Insured),
6.750% 09/01/11.... AAA AAA 1,636,845
1,100,000 San Antonio, Texas,
Water Revenue
Refunding, (MBIA
Insured),
6.500% 05/15/10.... Aaa AAA 1,205,864
5,000,000 Texas State
Department of
Housing and
Community Affairs,
Single Family
Mortgage Revenue,
AMT, Series A,
Class 1, (MBIA
Insured),
5.800% 09/01/29.... Aaa AAA 5,018,100
1,640,000 Texas State Public
Finance Authority,
Building Revenue
Refunding, (MBIA
Insured),
6.700% 02/01/01.... Aaa AAA 1,766,805
-----------
49,023,013
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
UTAH -- 2.3%
$ 2,000,000 Emery County, Utah,
Pollution Control
Revenue Refunding,
(Pacificorp
Projects), Series
A, (AMBAC Insured),
5.650% 11/01/23.... Aaa AAA $ 2,016,660
8,300,000 Murray City, Utah,
Hospital Revenue
Refunding, (IHC
Health Services
Inc.), (MBIA
Insured),
5.000% 05/15/22.... Aaa AAA 7,753,860
1,300,000 Salt Lake City, Utah,
Water and Sewer
Revenue, (AMBAC
Insured),
6.100% 02/01/14.... Aaa AAA 1,371,539
-----------
11,142,059
-----------
VIRGINIA -- 1.3%
2,000,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco
Corporation
Project),
6.650% 09/01/18.... A1 A 2,210,420
1,000,000 Norfolk, Virginia,
Capital
Improvements, GO,
(FGIC Insured),
5.375% 06/01/15.... Aaa AAA 1,010,850
3,000,000 Virginia Commonwealth
Transportation
Board,
Transportation
Program Revenue,
(Aok Grove
Connector), Series
A,
5.250% 05/15/22.... Aa2 AA 2,954,970
-----------
6,176,240
-----------
WASHINGTON -- 9.8%
1,000,000 Clark County,
Washington, School
District No.
037-Vancouver, GO,
5.500% 12/01/07.... Aa NR 1,055,070
2,480,000 Clark County,
Washington, Sewer
Revenue, (MBIA
Insured),
5.800% 12/01/11.... Aaa AAA 2,622,426
1,035,000 King County,
Washington, Library
Systems, GO,
6.150% 12/01/10.... Aa AA- 1,119,228
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 34
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- (CONTINUED)
$ 2,000,000 King County,
Washington, School
District No.
415-Kent, GO, (FSA
Insured),
5.800% 06/01/13.... Aaa AAA $ 2,114,180
7,150,000 Pierce County,
Washington,
Economic
Development
Corporation, Solid
Waste Revenue,
(Occidental
Petroleum),
5.800% 09/01/29.... Baa2 BBB 7,173,452
2,500,000 Public Industrial
Corporation, Port
Camas-Washougal,
Washington, PCR,
(James River
Corporation
Project),
6.700% 04/01/23.... NR BBB- 2,621,075
2,000,000 Seattle, Washington,
GO, Series A,
5.625% 01/15/10.... Aa1 AA+ 2,093,500
2,000,000 Seattle, Washington,
Municipal Light and
Power Revenue,
6.625% 07/01/16.... Aa AA 2,189,820
1,400,000 Seattle, Washington,
Water Systems
Revenue Refunding,
5.500% 06/01/18.... Aa2 AA 1,407,714
Snohomish County,
Washington, Public
Utility District
No. 1, Electric
Revenue Refunding,
Series A:
2,000,000 6.800% 01/01/05...... A1 A+ 2,172,180
1,000,000 6.900% 01/01/06...... A1 A+ 1,077,740
1,490,000 Tacoma, Washington,
GO, Series A,
6.000% 07/01/04.... A1 A+ 1,579,981
Washington State, GO:
Refunding, Series
92-A:
3,500,000 6.500% 09/01/04...... Aa1 AA+ 3,799,215
1,000,000 6.625% 09/01/06...... Aa1 AA+ 1,084,680
5,000,000 Series A,
6.750% 02/01/15.... Aa1 AA+ 5,922,350
<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:
$ 4,000,000 Series A, (Systems
Nuclear Project No.
1), (MBIA Insured),
5.750% 07/01/11.... Aaa AAA $ 4,216,200
1,000,000 Series B, (Systems
Nuclear Project No.
1), Pre-Refunded,
7.250% 01/01/00.... AAA AAA 1,084,840
3,000,000 Series B, (Systems
Nuclear Project No.
3), (FSA Insured),
5.400% 07/01/05.... Aaa AAA 3,138,870
------------
46,472,521
------------
WISCONSIN -- 0.2%
1,000,000 Wisconsin State,
Refunding, GO,
Series 1,
5.800% 11/01/08.... Aa2 AA 1,095,970
------------
WEST VIRGINIA -- 1.0%
Jefferson County,
West Virginia,
Board of Education,
(FGIC Insured):
1,450,000 6.850% 07/01/07...... Aaa AAA 1,705,186
1,560,000 6.850% 07/01/08...... Aaa AAA 1,843,327
1,000,000 West Virginia,
University Revenue,
State University
System, (Marshall
University
Library), (AMBAC
Insured),
5.750% 04/01/16.... Aaa AAA 1,040,830
------------
4,589,343
------------
WYOMING -- 0.5%
2,300,000 Campbell County,
Wyoming, School
District No. 001
Gillette, GO,
(School Board
Guarantee),
5.550% 06/01/06.... Aaa AAA 2,437,724
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $438,435,377)......... 468,293,433
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 35
NATIONS FUNDS
Nations Municipal Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 0.2%
(Cost $1,289,000)
1,289,000 AIM Tax-Exempt Fund....... $ 1,289,000
============
TOTAL INVESTMENTS
(Cost $439,724,377*).................. 98.6% 469,582,433
----- ------------
OTHER ASSETS AND
LIABILITIES (NET)..................... 1.4 6,434,890
----- ------------
NET ASSETS.............................. 100.0% $476,017,323
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CONNIE LEE College Construction Loan Association
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
</TABLE>
Nations Municipal Income Fund had the following insurance concentration greater
than 10% at September 30, 1997 (as a percentage of net assets):
MBIA 19.7%
Nations Municipal Income Fund had the following industry concentration greater
than 10% at September 30, 1997 (as a percentage of net assets):
Pollution Control Revenue/Industrial Development Revenue 20.9%
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 36
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (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 -- 96.8%
$2,000,000 Alachua County,
Florida, Health
Facilities Authority
Revenue, (Shands
Hospital, University
of Florida), (MBIA
Insured),
6.100% 12/01/05..... Aaa AAA $ 2,147,900
Bay Medical Center,
Florida, Hospital
Revenue Refunding,
(Bay Medical Center
Project), (AMBAC
Insured):
1,000,000 5.000% 10/01/05....... Aaa AAA 1,032,610
2,000,000 5.450% 10/01/12....... Aaa AAA 2,050,600
2,000,000 Boca Raton, Florida,
Water and Sewer
Revenue Refunding,
5.600% 10/01/04..... Aa2 AA- 2,123,740
1,000,000 Brevard County,
Florida, Health
Facilities Authority
Revenue Refunding,
(Wuesthoff Memorial
Hospital), (MBIA
Insured),
6.250% 04/01/06..... Aaa AAA 1,118,020
1,000,000 Broward County,
Florida, Gas Tax
Revenue,
6.400% 09/01/03..... A1 AA- 1,080,420
Broward County,
Florida, GO,
Series C:
2,000,000 5.600% 01/01/01....... Aa2 AA 2,089,740
3,000,000 6.200% 01/01/07....... Aa AA 3,237,540
2,000,000 Broward County,
Florida, School
District Revenue
Refunding, GO,
6.000% 02/15/07..... A1 AA- 2,147,440
2,000,000 Broward County,
Florida, Solid Waste
Revenue, (MBIA
Insured),
5.500% 07/01/04..... Aaa AAA 2,122,380
1,000,000 Citrus County,
Florida, PCR
Refunding, Crystal
River, (Florida
Power Corporation),
Series B,
6.350% 02/01/22..... Aa3 A+ 1,065,020
3,000,000 Clearwater, Florida,
Water and Sewer
Authority Revenue,
(AMBAC Insured),
5.000% 12/01/02..... Aaa AAA 3,104,670
1,000,000 Collier County,
Florida, Water and
Sewer District
Revenue, (FGIC
Insured),
6.375% 07/01/10..... Aaa AAA 1,090,580
<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 Dade County, Florida,
Aviation Facility
Revenue, Series B,
AMT, (AMBAC
Insured),
6.300% 10/01/05..... Aaa AAA $ 1,119,130
1,650,000 Dade County, Florida,
School District
Revenue Refunding,
(AMBAC Insured),
5.000% 07/15/01..... Aaa AAA 1,699,219
3,000,000 Dade County, Florida,
Water and Sewer
Systems Revenue,
(FGIC Insured),
5.000% 10/01/00..... Aaa AAA 3,079,830
Delray Beach, Florida,
Water and Sewer
Authority Revenue
Refunding, Series A,
(AMBAC Insured):
2,000,000 5.000% 10/01/02....... Aaa AAA 2,067,880
1,000,000 5.000% 10/01/03....... Aaa AAA 1,035,620
Dunes, Florida,
Community
Development District
Revenue,
(Intercoastal Water
Way Bridge):
1,565,000 5.300% 10/01/03....... NR BBB 1,607,850
1,900,000 5.400% 10/01/04....... NR BBB 1,960,287
1,935,000 Duval County, Florida,
Housing Finance
Authority, Multi-
family Mortgage
Revenue Refunding,
(The Cove Project),
6.100% 10/01/02..... NR AAA 2,013,445
3,600,000 Escambia County,
Florida, PCR,
(Champion
International
Corporation
Project), AMT,
6.400% 09/01/30..... Baa1 NR 3,873,852
1,700,000 Escambia County,
Florida, Utilities
Authority Systems
Revenue, (FGIC
Insured),
5.625% 01/01/21..... Aaa AAA 1,722,474
1,000,000 Florida Ports
Financing Community
Revenue, State
Transportation Trust
Fund, (MBIA
Insured),
5.375% 06/01/16..... Aaa AAA 988,890
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 37
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Florida State Board of
Education, GO,
Capital Outlay,
Public Education:
Refunding,
$1,450,000 5.500% 06/01/01....... Aa2 AA+ $ 1,516,410
1,000,000 Refunding, Series A,
5.000% 06/01/08..... Aa AA 1,028,270
1,500,000 Unrefunded Balance,
7.250% 06/01/23..... Aa AA 1,634,415
1,000,000 Unrefunded Balance,
Series C,
6.500% 06/01/11..... Aaa AA+ 1,102,980
4,000,000 Unrefunded Balance,
Series D,
5.200% 06/01/11..... Aa2 AA+ 4,033,320
3,030,000 Florida State Board of
Regents, University
System Improvement
Revenue, Series A,
5.000% 07/01/16..... Aa3 AA- 2,940,070
1,500,000 Florida State
Department of
Transportation,
(Right-of-Way
Bridge), GO,
5.375% 07/01/26..... Aa2 AA+ 1,485,765
1,000,000 Florida State Division
Bond, Financial
Department of
General Services
Revenue, Pool
Facilities
Management, (AMBAC
Insured),
4.800% 09/01/01..... Aaa AAA 1,023,260
Florida State Division
Bond, Financial
Department of
General Service
Revenue,
Preservation
Authority: (AMBAC
Insured):
2,000,000 6.200% 07/01/00....... Aaa AAA 2,109,720
3,000,000 6.250% 07/01/01....... Aaa AAA 3,215,550
(MBIA Insured):
2,000,000 5.800% 07/01/01....... Aaa AAA 2,112,740
1,000,000 6.250% 07/01/06....... Aaa AAA 1,080,810
Florida State Housing
Finance Agency,
Refunding:
4,000,000 Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/24..... NR BBB+ 4,402,040
1,000,000 Multi-family Housing
Revenue, (Andover
Project), Series E,
6.350% 05/01/26..... NR BBB+ 1,059,230
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
(The Vinyards
Project), Series H:
$1,415,000 5.875% 11/01/05....... NR BBB+ $ 1,451,974
1,000,000 6.400% 11/01/15....... NR BBB+ 1,030,640
1,305,000 Florida State
Jacksonville
Transportation
Authority, GO,
Refunding,
6.000% 07/01/05..... Aa2 AA+ 1,438,997
2,500,000 Florida State Turnpike
Authority Revenue,
Series A,
(AMBAC Insured),
7.000% 07/01/04..... Aaa AAA 2,768,500
1,000,000 Fort Lauderdale,
Florida, Water and
Sewer Authority
Revenue,
5.500% 09/01/01..... NR AAA 1,048,700
1,000,000 Gainesville, Florida,
Utilities Systems
Revenue, Series A,
5.750% 10/01/07..... Aa AA 1,098,950
1,375,000 Hialeah, Florida,
Capital Improvement
Revenue,
5.500% 10/01/18..... Baa1 NR 1,354,801
1,000,000 Hillsborough County,
Florida, Aviation
Authority Revenue
Refunding, (Tampa
International
Airport Project),
Series A, (AMBAC
Insured),
5.900% 10/01/06..... Aaa AAA 1,062,520
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 1,001,570
2,640,000 Hillsborough County,
Florida,
Environmentally
Sensitive Lands,
(AMBAC Insured),
6.250% 07/01/06..... Aaa AAA 2,871,106
2,000,000 Hillsborough County,
Florida, Utility
Revenue Refunding,
Capital
Appreciation, Series
A, (MBIA-IBC
Insured),
7.050% 08/01/99+.... Aaa AAA 1,857,040
1,000,000 Hollywood, Florida,
Water and Sewer
Revenue, (FGIC
Insured),
6.200% 10/01/01..... Aaa AAA 1,073,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 38
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Indian River County,
Florida, School
District, (FSA
Insured):
$1,500,000 5.000% 04/01/03....... Aaa AAA $ 1,550,970
1,800,000 5.000% 04/01/04....... Aaa AAA 1,861,524
1,750,000 5.100% 04/01/05....... Aaa AAA 1,818,495
1,000,000 Indian River County,
Florida, Water and
Sewer Revenue
Refunding, Series A,
(FGIC Insured),
5.200% 09/01/05..... Aaa AAA 1,043,460
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 1,080,510
2,000,000 Series 6C,
6.400% 10/01/00..... Aa1 AA 2,129,880
2,000,000 Series 10,
4.600% 10/01/00..... Aa1 AA 2,029,120
1,000,000 Electric Systems,
Series 3A,
5.200% 10/01/02..... Aa1 AA 1,041,040
1,000,000 Jacksonville, Florida,
Excise Tax Revenue
Refunding, Series A,
(FGIC Insured),
5.000% 10/01/09..... Aaa AAA 1,023,590
Jacksonville, Florida,
Health Facilities
Authority, Hospital
Revenue:
1,000,000 (Daughters of
Charity), Series A,
5.000% 11/15/15..... Aa2 AA 963,010
1,375,000 (St. Lukes Hospital
Association
Project),
6.750% 11/15/02..... NR AA+ 1,518,577
4,200,000 Series B,
5.400% 08/15/18..... Aa2 AA+ 4,158,252
1,000,000 Jacksonville Beach,
Florida, Utilities
Revenue,
(MBIA Insured),
6.500% 10/01/12..... Aaa AAA 1,102,430
1,000,000 Lake Worth, Florida,
Water and
Electricity Revenue
Refunding, Series A,
(AMBAC Insured),
4.700% 10/01/00..... Aaa AAA 1,017,640
2,000,000 Lakeland, Florida,
Water and
Electricity Revenue
Refunding,
5.625% 10/01/04..... Aa AA- 2,146,280
<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 Leon County, Florida,
School District
Revenue Refunding,
GO,
6.200% 07/01/04..... A1 A+ $ 1,063,580
2,000,000 Miami, Florida, GO,
(FGIC Insured),
5.600% 12/01/03..... Aaa AAA 2,130,540
1,500,000 Miami Beach, Florida,
GO, (FGIC Insured),
5.300% 09/01/03..... Aaa AAA 1,573,605
1,000,000 Naples, Florida, Water
and Sewer Revenue
Refunding, (FGIC
Insured),
6.400% 09/01/07..... Aaa AAA 1,096,240
3,000,000 North Broward,
Florida, Hospital
Revenue, (MBIA
Insured),
6.250% 01/01/06..... Aaa AAA 3,279,900
Orange County,
Florida, Health
Facilities Authority
Revenue Refunding:
1,375,000 (Lakeside Alternatives
Inc.),
6.250% 07/01/05..... NR BBB 1,457,032
(Orlando Regional
Medical Center
Hospital), (MBIA
Insured):
3,000,000 4.400% 10/01/02....... Aaa AAA 3,015,510
2,000,000 5.400% 11/01/02....... Aaa AAA 2,101,340
2,000,000 6.250% 10/01/16....... Aaa AAA 2,264,640
2,000,000 Orange County,
Florida, Housing
Finance Authority,
Single-family
Mortgage Revenue,
Series A,
(GNMA/FNMA
Collateral),
5.900% 09/01/19..... NR AAA 2,044,920
2,000,000 Orlando, Florida,
Greater Orlando
Aviation Authority,
Airport Facilities
Revenue Refunding:
2,000,000 Series B, (FGIC
Insured),
6.200% 10/01/03..... Aaa AAA 2,199,180
Series D, (AMBAC
Insured):
3,200,000 5.450% 10/01/01....... Aaa AAA 3,348,352
2,000,000 5.600% 10/01/02....... Aaa AAA 2,117,760
Orlando, Florida,
Utilities
Commission, Water
and Electricity
Revenue Refunding:
3,000,000 5.600% 10/01/03....... Aa1 AA 3,201,150
2,000,000 Series B,
5.400% 10/01/08..... Aa AA- 2,091,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 39
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Orlando and Orange
County, Florida,
Expressway Authority
Revenue Refunding:
$2,000,000 Junior Lien, (FGIC
Insured),
6.500% 07/01/10..... Aaa AAA $ 2,317,140
3,000,000 Senior Lien, (AMBAC
Insured),
5.000% 07/01/03..... Aaa AAA 3,105,840
Palm Beach County,
Florida, GO:
1,750,000 6.875% 12/01/03....... Aa2 AA 1,995,857
1,300,000 7.000% 12/01/04....... Aa AA 1,509,261
1,250,000 6.600% 10/01/11....... NR NR 1,377,725
1,000,000 Palm Beach County,
Florida, Health
Facilities Authority
Revenue,
(Good Samaritan
Health Systems),
6.100% 10/01/05..... NR A+ 1,084,330
1,000,000 Palm Beach County,
Florida, Housing
Finance Authority,
Series A,
6.300% 10/01/12..... Aaa NR 1,049,930
2,000,000 Palm Beach County,
Florida, School
District Revenue
Refunding, GO,
(AMBAC Insured),
6.000% 08/01/06..... Aaa AAA 2,144,160
2,000,000 Palm Beach County,
Florida, Stadium
Facilities Revenue,
(MBIA Insured),
5.250% 12/01/16..... Aaa AAA 1,985,520
1,250,000 Pembroke Pines,
Florida, Utility
Systems Revenue,
(FGIC Insured),
6.250% 09/01/07..... Aaa AAA 1,350,625
1,400,000 Pinellas County,
Florida, Health
Facilities Authority
Revenue, (Morton
Plant Health Systems
Project), (MBIA
Insured),
4.900% 11/15/02..... Aaa AAA 1,437,548
1,000,000 Pinellas County,
Florida, PCR,
(Anclote & Barton
Power Plants Florida
Power Corporation),
7.200% 12/01/14..... Aa3 A+ 1,092,330
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
Pinellas County,
Florida, Resource
Recovery Revenue
Refunding, Series A,
(MBIA Insured):
$2,000,000 6.600% 10/01/00....... Aaa AAA $ 2,142,840
2,500,000 6.800% 10/01/02....... Aaa AAA 2,712,775
2,000,000 Putnam County,
Florida, Development
Authority, PCR,
(Seminole Electric
Cooperative, Inc.
Project), Series H3,
3.700% 03/15/14++... A1+ AA- 2,000,220
Reedy Creek, Florida,
Improvement District
Revenue, Series A:
1,000,000 5.800% 06/01/00....... A1 A+ 1,042,760
2,700,000 6.400% 06/01/07....... A1 A+ 2,895,426
St. John's County,
Florida, Industrial
Development
Authority, Hospital
Revenue,
(Flagler Hospital
Project):
850,000 5.700% 08/01/02....... A BBB+ 885,955
945,000 6.000% 08/01/08....... A BBB+ 976,969
St. Lucie County,
Florida, School
District Revenue,
GO:
2,000,000 (AMBAC Insured),
6.000% 07/01/03..... Aaa AAA 2,171,500
1,000,000 (FGIC Insured),
5.875% 02/01/07..... Aaa AAA 1,099,010
2,000,000 St. Petersburg,
Florida, Utility Tax
Refunding Revenue,
(AMBAC Insured),
6.000% 06/01/05..... Aaa AAA 2,160,960
1,000,000 Sarasota, Florida,
Water and Sewer
Utility Revenue
Refunding,
(FGIC Insured),
6.000% 10/01/02..... Aaa AAA 1,078,590
1,200,000 Sarasota County,
Florida, GO, (FGIC
Insured),
6.100% 10/01/02..... Aaa AAA 1,299,672
1,650,000 Sarasota County,
Florida, Public
Hospital Board
Revenue, (Sarasota
Memorial Hospital
Project), Series B,
(MBIA Insured),
5.000% 10/01/07..... Aaa NR 1,698,444
2,100,000 Seminole County,
Florida, School
District Revenue,
GO, (MBIA Insured),
5.900% 08/01/02..... Aaa AAA 2,250,843
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 40
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,230,000 South Broward,
Florida, Hospital
District Revenue
Refunding, (AMBAC
Insured),
4.650% 05/01/00..... Aaa AAA $ 1,246,999
Tallahassee, Florida,
Health Facilities
Revenue Refunding,
Memorial Regional
Medical Center,
Inc., (MBIA
Insured):
1,000,000 Series A,
5.750% 12/01/04..... Aaa AAA 1,077,230
1,000,000 Series B,
5.750% 12/01/04..... Aaa AAA 1,077,230
3,170,000 Tampa, Florida, Sports
Authority Revenue,
(Stadium Project),
(MBIA Insured),
6.000% 01/01/07..... Aaa AAA 3,501,106
1,000,000 Tampa, Florida, Water
and Sewer Revenue,
Series A, (FGIC
Insured),
5.000% 10/01/02..... Aaa AAA 1,033,940
1,025,000 Venice, Florida,
Health Facilities
Revenue, (Venice
Hospital, Inc.
Project),
5.300% 12/01/02..... A NR 1,074,610
------------
203,729,537
------------
PUERTO RICO -- 1.3%
1,650,000 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- 1,694,138
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 1,066,670
------------
2,760,808
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $196,151,218).......... 206,490,345
============
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 0.5%
(Cost $1,147,000)
1,147,000 AIM Tax-Exempt Fund........ $ 1,147,000
============
TOTAL INVESTMENTS
(Cost $197,298,218*).................. 98.6% 207,637,345
OTHER ASSETS AND
LIABILITIES (NET)..................... 1.4 2,875,314
----- ------------
NET ASSETS.............................. 100.0% $210,512,659
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
++ Variable rate note. The interest shown reflects the rate in effect at
September 30, 1997.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
IBC Insured Bond Certificate
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
Nations Florida Intermediate Municipal Bond Fund had the following insurance
concentrations greater than 10% at September 30, 1997 (as a percentage of net
assets):
AMBAC 20.2%
MBIA 20.0%
FGIC 11.5%
Nations Florida Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
Pollution Control Revenue/Industrial Development Revenue 15.6%
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 41
NATIONS FUNDS
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.6%
FLORIDA -- 92.2%
Alachua County,
Florida, Health
Facilities Authority,
Revenue Refunding:
$1,000,000 (Santa Fe Healthcare
Facilities Project),
ETM,
6.000% 11/15/09...... Baa1 AAA $ 1,069,260
1,000,000 (Shands Teaching
Hospitals and Clinics
Inc. Project), Series
A, (MBIA Insured),
5.000% 12/01/04...... Aaa AAA 1,034,000
1,000,000.. Alachua County,
Florida, Public
Improvement Revenue
Refunding, (FSA
Insured),
5.000% 08/01/14...... Aaa AAA 983,180
1,000,000.. Canaveral, Florida,
Port Authority Revenue
Refunding, Port
Improvement, Series
B, (FGIC Insured),
5.700% 06/01/13...... Aaa AAA 1,042,300
1,000,000.. Citrus County, Florida,
PCR Refunding,
Crystal River,
(Florida Power
Corporation),
Series B,
6.350% 02/01/22...... Aa3 A+ 1,065,020
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 968,380
1,000,000.. Dade County, Florida,
School District
Revenue Refunding,
GO, Series A, (MBIA
Insured),
6.125% 06/01/14...... Aaa AAA 1,079,520
1,500,000.. Dade County, Florida,
Water and Sewer
System Revenue
Refunding, (FGIC
Insured),
5.000% 10/01/13...... Aaa AAA 1,478,880
Escambia County,
Florida, PCR,
(Champion
International
Corporation Project),
AMT:
1,000,000.. 6.900% 08/01/22........ Baa1 BBB 1,106,170
1,000,000.. 6.400% 09/01/30........ Baa1 NR 1,076,070
<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:
$1,000,000.. Refunding, Series A,
5.000% 06/01/08...... Aa AA $ 1,028,270
1,000,000 Refunding, Series D,
5.125% 06/01/18...... Aa AA 967,130
1,000,000 Unrefunded Balance,
Series A,
7.250% 06/01/23...... Aa AA 1,089,610
1,000,000 Florida State
Department of
Transportation, Fuel
Sales Tax Revenue,
(Right-of-Way
Bridge), GO,
5.375% 07/01/26...... Aa2 AA+ 990,510
Florida State Housing
Finance Agency,
Refunding:
1,000,000 Multi-family Housing,
(Altamonte Project),
Series C,
7.000% 12/01/24...... NR BBB+ 1,100,510
845,000 Single-family Mortgage,
Series B, AMT,
(GNMA/FNMA
Collateral),
6.550% 07/01/17...... Aaa AAA 888,517
500,000 (The Vinyards Project),
Series H,
6.500% 11/01/25...... NR BBB+ 517,150
Florida State
Jacksonville
Transportation
Authority, GO,
Refunding:
1,000,000 6.000% 07/01/05........ Aa2 AA+ 1,102,680
1,000,000 5.000% 07/01/19........ Aa2 AA+ 958,960
1,000,000 Florida State Municipal
Power Agency Revenue,
(Stanton II Project),
Pre-refunded, (AMBAC
Insured),
6.500% 10/01/20...... Aaa AAA 1,117,130
1,000,000 Hillsborough County,
Florida, Industrial
Development
Authority, PCR,
(Tampa Electric
Company Project),
8.000% 05/01/22...... Aa3 AA 1,158,000
1,000,000 Hillsborough County,
Florida, Utility
Refunding Revenue,
(MBIA Insured),
5.500% 08/01/12...... Aaa AAA 1,021,030
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 42
NATIONS FUNDS
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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,
Health Facilities
Authority, Hospital
Revenue:
$1,500,000 (Daughters Of Charity),
Series A,
5.000% 11/15/15...... Aa2 AA $ 1,444,515
1,000,000 Series B,
5.250% 08/15/27...... Aa2 AA+ 964,890
750,000 Jacksonville, Florida,
PCR Refunding,
(Anheuser-Busch
Companies Project),
5.700% 08/01/31...... A1 AA- 765,128
1,000,000 Martin County, Florida,
Industrial
Development Authority
Revenue, (Indiantown
Cogeneration
Project),
Series A, AMT,
7.875% 12/15/25...... Baa3 BBB- 1,157,850
1,000,000 North Broward, Florida,
Hospital Revenue,
(MBIA Insured),
6.250% 01/01/06...... Aaa AAA 1,093,300
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 1,002,610
1,000,000 Orange County, Florida,
Sales Tax Revenue,
Series B,
5.375% 01/01/24...... A1 A+ 984,020
1,000,000 Orange County, Florida,
Tourist Development
Tax Revenue, Series
B, (MBIA Insured),
6.000% 10/01/14...... Aaa AAA 1,073,280
1,000,000 Osceola County,
Florida, Health
Facilities Authority
Revenue Refunding,
Lutheran Good
Samaritan Society,
(AMBAC Insured),
6.000% 05/01/10...... Aaa AAA 1,075,540
1,500,000 Palm Beach County,
Florida, Health
Facilities Authority
Revenue, (Good
Samaritans Health
System),
6.200% 10/01/11...... NR A+ 1,582,125
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000,000 Palm Beach County,
Florida, Housing
Finance Authority,
Single-family
Mortgage Purchase
Revenue, Series A,
(GNMA/FNMA
Collateral),
6.500% 10/01/21...... Aaa NR $ 1,057,230
1,000,000 Polk County, Florida,
Industrial
Development
Authority, Solid
Waste Disposal
Facilities Revenue,
(Tampa Electric
Company Project),
5.850% 12/01/30...... Aa2 AA 1,023,880
950,000 Putnam County, Florida,
Development
Authority, PCR,
(Seminole Electric
Cooperative, Inc.
Project), Series H4,
3.700% 03/15/14+..... A1+ AA 950,105
2,000,000 South Broward, Florida,
Hospital District
Revenue Refunding,
(FSA Insured),
5.500% 05/01/28...... Aaa AAA 1,973,660
1,000,000 Tampa, Florida, Sports
Authority Revenue,
(Stadium Project),
(MBIA Insured),
5.125% 01/01/12...... Aaa AAA 998,420
Venice, Florida, Health
Facilities Revenue
Refunding, (Venice
Hospital Inc.
Project):
900,000 5.600% 12/01/05........ A NR 972,189
1,000,000 5.700% 12/01/06........ A NR 1,085,770
1,000,000 Volusia County,
Florida, Educational
Facilities Authority
Revenue, Series A,
6.125% 10/15/26...... Baa NR 1,041,930
-----------
43,088,719
-----------
PUERTO RICO -- 4.4%
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 1,037,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 43
NATIONS FUNDS
Nations Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- (CONTINUED)
$1,000,000 Puerto Rico Municipal
Finance Agency,
Series B,
5.000% 07/01/99...... Baa1 A- $ 1,017,550
-----------
2,055,250
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $42,721,096)............ 45,143,969
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 1.6%
(Cost $754,000)
754,000 AIM Tax-Exempt Fund........... $ 754,000
===========
TOTAL INVESTMENTS
(Cost $43,475,096*).................... 98.2% 45,897,969
OTHER ASSETS AND
LIABILITIES (NET)...................... 1.8 818,701
----- -----------
NET ASSETS............................... 100.0% $46,716,670
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1997.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
ETM Escrow to Maturity
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 concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
MBIA 17.7%
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 44
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.0%
GEORGIA -- 97.3%
$1,000,000 Alpharetta, Georgia,
GO,
6.00% 05/01/03...... Aa AA- $ 1,083,580
Atlanta, Georgia,
Airport Facilities
Revenue:
Refunding, (AMBAC
Insured):
1,000,000 5.000% 01/01/03....... Aaa AAA 1,031,110
1,000,000 6.000% 01/01/03....... Aaa AAA 1,078,610
8,000,000 Unrefunded Balance,
(MBIA Insured),
7.250% 01/01/10+...... Aaa AAA 4,134,640
1,000,000 Atlanta, Georgia,
Downtown Development
Authority Revenue
Refunding,
(Underground Atlanta
Project),
6.250% 10/01/12..... Aa AA 1,078,190
750,000 Atlanta, Georgia, GO,
Series A,
6.100% 12/01/19..... Aa3 AA 802,057
1,000,000 Atlanta and Fulton
Counties, Georgia,
Recreation Authority
Revenue
Refunding, (Atlanta
Zoo Project),
5.850% 12/01/00..... Aa AA 1,051,150
3,000,000 Baldwin County,
Georgia, School
District, GO,
4.50% 01/01/03...... NR AA- 3,026,370
3,000,000 Bibb County, Georgia,
GO,
5.50% 01/01/08...... A1 AA 3,138,330
Burke County, Georgia,
Development
Authority, PCR,
(Oglethorpe
Power Corporation):
Series B:
1,000,000 4.350% 01/01/01....... A1 A+ 1,001,320
1,000,000 4.700% 01/01/04....... A3 A 1,005,850
830,000 (MBIA Insured),
7.700% 01/01/06....... Aaa AAA 980,396
2,000,000 Cartersville, Georgia,
Development
Authority Revenue
Refunding,
(Anheuser-Busch),
5.625% 05/01/09..... A1 A+ 2,098,060
1,000,000 Chatham County,
Georgia, School
District, GO,
5.800% 08/01/04..... A1 AA 1,065,050
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
Cherokee County,
Georgia, School
System Revenue, GO:
$1,000,000 5.900% 06/01/02....... A1 NR $ 1,067,410
1,000,000 (AMBAC Insured),
5.875% 02/01/09..... Aaa AAA 1,096,740
875,000 Cherokee County,
Georgia, Water and
Sewer Authority,
Revenue Refunding
and Improvement,
(MBIA Insured),
5.300% 08/01/09..... Aaa AAA 917,324
Clark County, Georgia,
Hospital Authority
Revenue:
1,000,000 (Regional Medical
Center Project),
(MBIA Insured),
5.750% 01/01/08..... Aaa AAA 1,061,300
1,000,000 (Southern Regional
Medical Center
Project), (MBIA
Insured),
6.700% 08/01/02..... Aaa AAA 1,101,330
1,000,000 Clarke County,
Georgia, School
District Refunding,
GO, (FGIC Insured),
5.100% 07/01/04..... Aaa AAA 1,040,440
1,000,000 Clayton County,
Georgia, Water and
Sewer Authority
Revenue, (MBIA
Insured),
5.400% 05/01/07..... Aaa AAA 1,050,050
1,000,000 Cobb County, Georgia,
Detention Buildings
and Facilities, GO,
5.300% 01/01/08..... Aaa AA+ 1,039,550
Cobb County, Georgia,
Kennestone Hospital
Authority Revenue,
Series A:
1,200,000 5.600% 04/01/05....... Aa2 AA 1,271,892
1,000,000 5.700% 04/01/06....... Aa AA 1,061,840
Cobb County, Georgia,
School District, GO:
2,000,000 4.800% 02/01/04....... Aa1 AA 2,043,700
2,000,000 Series B,
6.150% 02/01/03..... Aa1 AA 2,174,620
Cobb County, Georgia,
Water and Sewer
Authority Revenue,
Refunding, Series A:
725,000 4.600% 07/01/00....... Aa1 AA 735,056
1,000,000 5.400% 07/01/08....... Aa1 AA 1,047,750
2,000,000 Cobb County and
Marietta, Georgia,
Water Authority
Revenue Refunding,
5.000% 11/01/03..... Aa AA- 2,073,120
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 45
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Columbus, Georgia,
Water and Sewer
Authority Revenue
Refunding:
$1,000,000 5.100% 05/01/03....... A3 A+ $ 1,033,300
2,250,000 Series 1992, (FGIC
Insured),
6.000% 05/01/03..... Aaa AAA 2,435,737
1,000,000 Dalton, Georgia,
Building Authority
Revenue,
5.000% 07/01/02..... A1 NR 1,030,170
Dalton, Georgia,
Multiple Utility
Revenue Refunding,
(MBIA Insured):
2,000,000 4.450% 01/01/03....... Aaa AAA 2,010,860
5,000,000 6.000% 01/01/06....... Aaa AAA 5,497,400
DeKalb County,
Georgia, School
District, GO:
1,000,000.. 5.000% 07/01/03....... Aa AA 1,034,760
1,000,000 Series A,
4.250% 07/01/99..... Aa AA 1,005,150
775,000 DeKalb County,
Georgia, Water and
Sewer Revenue,
7.000% 10/01/06..... Aa AA 790,570
1,000,000 Downtown Savannah
Authority, Georgia,
(Chatham County
Projects), Series A,
5.000% 01/01/11..... Aa AA 997,050
Fayette County,
Georgia, School
District, GO:
Series 1992:
1,000,000 5.200% 03/01/00....... Aa A+ 1,025,750
1,000,000.. (FGIC Insured),
6.100% 03/01/03..... Aaa AAA 1,085,650
500,000 Series 1994,
5.500% 03/01/03..... Aa A+ 528,220
750,000 Forsyth County,
Georgia, School
District, GO,
6.400% 07/01/05..... A1 A+ 842,857
Fulco, Georgia,
Hospital Authority
Revenue, Revenue
Anticipation
Certificates:
Georgia Baptist
Healthcare, Series
A:
1,500,000 5.800% 09/01/01....... Baa1 NR 1,570,170
1,000,000 6.000% 09/01/03....... Baa1 NR 1,087,580
St. Joseph's Hospital:
2,000,000 4.900% 10/01/03....... A A 2,035,360
1,000,000 5.500% 10/01/14....... A3 A 1,003,520
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
Fulton and DeKalb
Counties, Georgia,
Hospital Authority,
Revenue Refunding:
(Grady Memorial
Hospital Project),
(MBIA Insured):
$1,000,000 5.250% 01/01/04....... Aaa AAA $ 1,041,520
800,000 5.500% 01/01/08....... Aaa AAA 836,888
1,000,000 Series A, (AMBAC
Insured),
6.950% 01/01/01..... Aaa AAA 1,079,580
Fulton County,
Georgia, Building
Authority Revenue
Refunding:
1,025,000 (County Government and
Health Facilities
Project), Series A,
5.700% 01/01/04..... Aaa AAA 1,095,920
1,000,000 (Judicial Center
Facilities Project),
5.700% 01/01/00..... Aa AA 1,035,330
1,000,000 Fulton County,
Georgia, Hospital
Authority Revenue
Refunding, Revenue
Anticipation
Certificates,
(Northside Hospital
Project), Series A,
(MBIA Insured),
6.000% 10/01/01..... Aaa AAA 1,065,690
Fulton County,
Georgia, School
District, GO:
500,000 7.500% 01/01/01....... Aa3 AA 549,870
1,000,000 7.500% 01/01/02....... Aa3 AA 1,123,690
1,500,000 6.250% 05/01/04....... Aa AA 1,656,210
1,300,000 Fulton County,
Georgia, Water and
Sewer Authority
Revenue
Refunding, (FGIC
Insured),
5.100% 01/01/98..... Aaa AAA 1,304,290
1,000,000 George L. Smith II,
Georgia, World
Congress Center
Authority,
Recreational
Revenue, (Domed
Stadium Project),
7.875% 07/01/20..... Aa3 AA- 1,094,760
Georgia State, GO:
Series A:
695,000 7.700% 02/01/00....... Aaa AAA 750,544
1,500,000 6.250% 03/01/06....... Aaa AA+ 1,684,455
1,200,000 Series B,
6.000% 03/01/04..... Aaa AAA 1,307,712
2,750,000 Series C,
6.500% 07/01/05..... Aaa AA+ 3,119,848
1,500,000 Series D,
6.800% 08/01/99..... Aaa AA+ 1,575,930
500,000 Refunding, Series E,
5.500% 07/01/03..... Aaa AAA 530,780
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 46
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,000,000 Georgia State, Housing
and Finance
Authority Revenue,
(Homeownership
Opportunity
Program),
(FHA/VA/Collateral),
Series B,
6.600% 06/01/25..... Aa AA+ $ 1,054,160
1,500,000 Georgia State,
Municipal Gas
Authority, Gas Tax
Revenue, (Southern
Storage Gas
Project),
6.000% 07/01/04..... NR A- 1,624,215
Georgia State Tollway
Authority Revenue,
(Georgia 400
Project):
2,000,000 6.375% 07/01/02....... Aaa AA+ 2,181,460
1,000,000 6.400% 07/01/03....... Aaa AAA 1,089,760
Griffin-Spalding
County, Georgia,
School System, GO,
(FSA Insured):
1,000,000 5.250% 02/01/10....... Aaa AAA 1,013,850
2,000,000 5.600% 02/01/21....... Aaa AAA 2,015,400
Gwinnett County,
Georgia, School
District, GO:
500,000 4.500% 02/01/01....... Aa1 AA+ 505,065
1,000,000 5.250% 02/01/08....... Aa1 AA+ 1,027,530
1,400,000 5.375% 02/01/09....... Aa1 AA+ 1,438,724
1,000,000 Refunding, Series B,
6.000% 02/01/01..... Aa1 AA 1,056,380
Gwinnett County,
Georgia, Water &
Sewer Authority,
Water Revenue
Refunding:
765,000 4.600% 08/01/00....... Aaa AAA 775,924
925,000 8.400% 08/01/01....... NR AA+ 1,060,115
Hall County, Georgia,
School District, GO:
2,000,000 (AMBAC Insured),
6.700% 12/01/14..... Aaa AAA 2,261,720
1,000,000 Refunding, Series B,
6.300% 12/01/05..... A NR 1,118,220
1,000,000 Henry City and County,
Georgia, Water and
Sewer Authority
Revenue Refunding,
Series A,
5.000% 02/01/07..... A NR 1,019,740
Henry County, Georgia,
School District, GO:
1,000,000 Series A,
5.700% 08/01/02..... A1 A+ 1,061,820
Series B:
1,000,000 5.300% 08/01/99....... A1 A+ 1,023,630
1,000,000 5.600% 08/01/01....... A1 A+ 1,050,150
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$2,000,000 Houston County,
Georgia, School
District, GO, (MBIA
Insured),
5.500% 03/01/16..... Aaa AAA $ 2,012,920
1,000,000 La Grange, Georgia,
Water and Sewer
Revenue,
7.375% 01/01/12..... NR NR 1,086,370
1,000,000 Macon, Georgia, Water
and Sewer Authority
Revenue Refunding,
Series A,
4.700% 10/01/04..... A1 A+ 1,014,780
1,000,000 Meriwether County,
Georgia, School
District, GO, (FSA
Insured),
5.500% 02/01/16..... Aaa AAA 1,015,950
Metropolitan Atlanta
Rapid Transit
Authority (MARTA),
Georgia,
Sales Tax Revenue:
540,000 7.000% 07/01/11....... AAA AAA 650,025
Refunding, Series M:
1,000,000 6.150% 07/01/02....... A1 NR 1,076,900
1,000,000 6.350% 07/01/04....... A1 AA- 1,084,410
3,000,000 Refunding, Series P,
(AMBAC Insured),
5.900% 07/01/03..... Aaa AAA 3,237,360
1,000,000 Monroe County,
Georgia, Development
Authority, PCR,
(Oglethorpe Power
Corporation), Series
A,
6.800% 01/01/12..... A3 A+ 1,165,510
2,495,000 Municipal Electric
Authority, Georgia,
(Project One),
Series A, (MBIA
Insured),
5.375% 01/01/19..... Aaa AAA 2,477,585
1,100,000 Paulding County,
Georgia, School
District, GO, Series
A,
6.400% 02/01/04..... A A 1,215,302
Private Colleges and
Universities
Facilities Authority
Revenue, Georgia:
1,400,000 (Emory University
Project), Series C,
5.750% 10/01/02..... Aa1 AA 1,493,100
1,000,000 (Spellman College
Project), (FGIC
Insured),
4.850% 06/01/98..... Aaa AAA 1,006,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 47
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,000,000 Richmond County,
Georgia, Board of
Education, GO, (FGIC
Insured),
4.700% 11/01/06..... Aaa AAA $ 1,008,260
1,500,000 Richmond County,
Georgia, Water and
Sewer Revenue
Refunding and
Improvement, Series
A, (FGIC Insured),
5.250% 10/01/28..... Aaa AAA 1,466,310
Roswell, Georgia, GO:
2,000,000 5.600% 02/01/10....... Aa AA 2,109,260
925,000 Refunding,
5.750% 02/01/07..... Aa AA 990,638
860,000 Savannah, Georgia,
Economic Development
Authority, (Mighty
Eighth Air Force
Heritage Inc.
Project),
5.875% 01/01/15..... Aa AA 892,921
1,000,000 Savannah, Georgia,
Economic Development
Authority Refunding,
PCR, (Union Camp
Corporation
Project),
5.150% 05/01/02..... A1 NR 1,030,800
1,250,000 Savannah, Georgia,
Hospital Authority
Revenue Refunding
and Improvement,
(Candler Hospital
Project),
7.000% 01/01/11..... Ba1 BB 1,321,200
Savannah, Georgia,
Resource Recovery
Development
Authority, Revenue
Refunding, (Southern
Energy Systems
Company Project):
1,000,000 5.700% 12/01/00....... A1 A+ 1,040,100
1,500,000 5.850% 12/01/01....... A1 A+ 1,579,830
<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 Savannah, Georgia,
Water and Sewer
Revenue Refunding
and Improvement,
5.100% 12/01/09..... A1 AA- $ 1,015,520
------------
140,593,620
------------
PUERTO RICO -- 0.7%
1,000,000 Puerto Rico Municipal
Finance Agency
Refunding, Series B,
5.000% 07/01/99..... Baa1 A- 1,017,550
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $135,161,990).......... 141,611,170
===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
- ---------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 1.0%
(Cost $1,441,000)
1,441,000 AIM Tax-Exempt Fund............ 1,441,000
=============
TOTAL INVESTMENTS
(Cost $136,602,990*).................. 99.0% 143,052,170
OTHER ASSETS AND
LIABILITIES (NET)..................... 1.0 1,457,221
----- ------------
NET ASSETS.............................. 100.0% $144,509,391
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
VA Veterans Administration
Nations Georgia Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 1997 (as a percentage of net
assets):
MBIA 16.7%
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 48
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30 , 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.3%
GEORGIA -- 93.2%
$ 500,000 Albany, Georgia, Sewer
System Revenue, (MBIA
Insured),
4.900% 07/01/07...... Aaa AAA $ 512,835
500,000 Atlanta & Fulton
County, Georgia,
Recreational
Authority Revenue,
(Downtown Arena
Public Improvement
Project), Series A,
(MBIA Insured),
5.375% 12/01/26...... Aaa AAA 495,955
500,000 Bartow County, Georgia
School District, GO,
Series 1993,
5.300% 05/01/08...... A A 515,075
500,000 Burke County, Georgia,
Development
Authority, PCR,
(Oglethorpe Power
Corporation Project),
Series B,
4.700% 01/01/04...... A3 A 502,925
500,000 Cartersville, Georgia,
Development Authority
Revenue, Sewerage
Facilities, (Anheuser
Busch Project), AMT,
5.625% 05/01/09...... A1 A+ 524,515
500,000 Clayton County,
Georgia, Housing
Authority,
Multi-family Housing
Revenue, (Advantages
of Atlanta Apartments
Project), (FHLMC
Collateral),
5.700% 12/01/16...... NR AAA 504,180
500,000 Columbia County,
Georgia, School
District, Series B,
(MBIA Insured),
6.250% 04/01/13...... Aaa AAA 547,435
500,000 Columbus, Georgia,
Water and Sewer
Authority Revenue
Refunding,
5.700% 05/01/20...... A A+ 508,385
470,000 Coweta County, Georgia,
Development
Authority, Industrial
Development Revenue,
(Sivaco National Wire
Project), AMT,
5.400% 02/01/09...... A NR 470,277
500,000 Dalton, Georgia,
Multiple Utility
Revenue Refunding,
(MBIA Insured),
4.450% 01/01/03...... Aaa AAA 502,715
500,000 Fayette County,
Georgia, School
District, GO,
6.125% 03/01/15...... Aa A+ 533,995
<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 Fulco, Georgia,
Hospital Authority
Revenue, Revenue
Anticipation
Certificates, St.
Joseph's Hospital,
5.500% 10/01/14...... A A $ 1,003,520
500,000 Fulton County, Georgia,
Development Authority
Revenue, (Clark
Atlanta University
Project), (CONNIE LEE
Insured),
5.125% 01/01/10...... Baa2 AAA 491,040
1,000,000 Galena Park, Texas,
Independent School
District, GO,
6.375% 08/15/24+..... Aaa NR 226,660
1,000,000 Georgia L. Smith II,
Georgia, World
Congress Center
Authority,
Recreational Revenue,
(Domed Stadium
Project),
7.875% 07/01/20...... Aa3 AA- 1,094,760
500,000 Georgia State Municipal
Electric Authority
Power Revenue, Series
CC,
4.500% 01/01/02...... A A 498,630
500,000 Gwinnett County,
Georgia, Water and
Sewer Revenue
Refunding,
4.900% 08/01/06...... Aa1 AA+ 514,420
500,000 Lawrenceville, Georgia,
Housing Authority,
Multi-family Housing
Revenue, (Knollwood
Park Apartments
Project), (FNMA
Collateral),
6.25% 12/01/29....... NR AAA 525,185
500,000 Peach County, Georgia,
School District, GO,
(MBIA Insured),
6.500% 02/01/08...... Aaa AAA 573,860
500,000 Private Colleges &
Universities
Authority Georgia
Revenue, (Emory
University Project),
Series C,
5.125% 11/01/27...... Aa1 AA 485,425
1,000,000 Richmond County,
Georgia, Development
Authority Revenue and
Improvement, Series
A, (FGIC Insured),
5.250% 10/01/28...... Aaa AAA 488,770
1,000,000 Roswell, Georgia, GO,
5.600% 02/01/10...... Aa AA 1,054,630
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 49
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30 , 1997 (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:
$ 500,000 (Candler Hospital
Project),
7.000% 01/01/23...... Ba BB $ 525,664
450,000 (St. Joseph's Hospital
Project),
6.125% 07/01/12...... A NR 478,598
500,000 Savannah, Georgia,
Water and Sewer
Revenue Refunding and
Improvement,
5.100% 12/01/10...... A1 AA- 503,005
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 538,570
570,000 White County, Georgia,
Industrial
Development Authority
Revenue Refunding,
(Clark-Schwebel Fiber
and Glass Company
Project),
6.850% 06/01/10...... NR BBB+ 606,218
-----------
15,227,247
-----------
PUERTO RICO -- 3.1%
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 514,885
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $15,137,074)............ 15,742,132
===========
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 3.1%
(Cost $506,000)
506,000 AIM Tax-Exempt Fund......... $ 506,000
===========
TOTAL INVESTMENTS
(Cost $15,643,074*).................... 99.4% 16,248,132
OTHER ASSETS AND
LIABILITIES (NET)...................... 0.6 91,399
----- -----------
NET ASSETS............................... 100.0% $16,339,531
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
AMT Alternative Minimum Tax
CONNIE LEE College Construction Loan Association
FGIC Federal Guaranty Insurance Corporation
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
Nations Georgia Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
MBIA 16.1%
Nations Georgia Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
Housing Revenue 12.8%
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 50
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.4%
MARYLAND -- 92.0%
Anne Arundel County,
Maryland,
Consolidated Public
Improvement Revenue,
GO:
$1,500,000 5.500% 07/15/00........ Aa1 AA+ $ 1,555,965
1,000,000 6.200% 04/15/03........ Aa1 AA+ 1,079,330
1,000,000 5.125% 07/15/08........ Aa1 AA+ 1,030,020
1,740,000 Baltimore, Maryland,
Consolidated Public
Improvement Revenue,
Series A,
(FGIC Insured),
5.300% 10/15/16...... Aaa AAA 1,741,183
1,000,000 Baltimore, Maryland,
GO, Series B,
(MBIA Insured),
7.050% 10/15/07...... Aaa AAA 1,194,880
1,750,000 Baltimore, Maryland,
Port Facilities
Revenue, Consolidated
Coal Sales, Series
85,
6.500% 12/01/10...... Aa3 AA- 1,910,807
Baltimore, Maryland,
Revenue Refunding,
(Wastewater
Projects), Series A:
(FGIC Insured):
500,000 5.000% 07/01/22........ Aaa AAA 483,425
500,000 5.000% 07/01/24........ Aaa AAA 482,800
1,000,000 (MBIA Insured),
5.100% 07/01/04...... Aaa AAA 1,039,850
Baltimore County,
Maryland,
Consolidated Public
Improvement, Revenue
Refunding:
1,000,000 5.900% 03/01/98........ Aaa AAA 1,008,930
1,000,000 6.100% 07/01/01........ Aaa AAA 1,067,760
1,000,000 Series A,
(AMBAC Insured),
5.300% 10/15/06...... Aaa AAA 1,039,210
1,075,000 Series C,
(FGIC Insured),
6.375% 10/15/07...... Aaa AAA 1,227,048
Baltimore County,
Maryland,
Metropolitan District
Special Assignment
Refunding, GO:
1,375,000 5.750% 05/01/02........ Aaa AAA 1,461,240
1,000,000 5.800% 05/01/03........ Aaa AAA 1,074,770
2,000,000 Calvert County,
Maryland,
Consolidated Public
Improvement Revenue
Refunding, GO,
4.625% 07/15/05...... Aa A+ 2,016,160
Carroll County,
Maryland,
Consolidated Public
Improvement Revenue,
GO:
1,350,000 6.000% 11/01/00........ Aa3 AA 1,425,600
500,000 6.900% 10/01/02........ Aaa AA 548,030
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <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 $ 1,036,170
2,000,000 4.800% 12/01/04........ Aaa AAA 2,044,920
Charles County,
Maryland,
Consolidated Public
Improvement, Revenue
Refunding, GO:
3,400,000 4.400% 06/01/03........ Aa AA- 3,418,462
Pre-Refunded:
1,000,000 6.375% 12/01/99........ Aaa AA- 1,067,510
750,000 6.450% 06/01/01........ Aaa AA- 819,930
2,000,000 Frederick County,
Maryland,
Consolidated Public
Improvement, Revenue
Refunding, GO, (FGIC
Insured),
5.750% 12/01/01...... Aaa AAA 2,120,440
1,000,000 Frederick County,
Maryland, GO, Series
B,
6.300% 07/01/06...... Aa AA- 1,101,400
600,000 Harford County,
Maryland, GO,
Pre-Refunded,
6.100% 12/01/00...... Aaa AAA 645,840
1,455,000 Harford County,
Maryland, Public
Improvement Revenue,
GO,
5.300% 09/01/03...... Aa AA- 1,531,053
1,000,000 Howard County,
Maryland,
Metropolitan
District, GO, Series
B,
6.000% 08/15/03...... Aaa AA+ 1,089,000
605,000 Laurel, Maryland, GO,
Series A,
(MBIA Insured),
6.300% 07/01/00...... Aaa AAA 640,078
1,530,000 Laurel, Maryland,
Public Improvement
Refunding, Series A,
(FGIC Insured),
5.000% 10/01/11...... Aaa AAA 1,532,570
500,000 Maryland-National
Capital Park and
Planning Commission,
(Prince Georges
County),
GO, Series J-2,
Pre-Refunded,
6.900% 07/01/00...... Aa2 AA 544,720
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 51
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,000,000 Maryland State,
Community Development
Administration,
Department of Housing
and Community
Development,
(Single-family
Project),
First Series,
(FHA Insured),
4.950% 04/01/07...... Aa2 NR $ 1,004,520
1,100,000 Maryland State, GO,
Third Series,
Pre-Refunded,
6.800% 07/15/00...... Aaa AAA 1,192,235
Maryland State, Health
and Higher Education
Facilities Authority
Revenue: Howard
County General
Hospital:
1,000,000 5.125% 07/01/03........ Baa1 BBB 1,005,610
1,000,000 5.500% 07/01/13........ Baa1 BBB 993,660
500,000 Sinai Hospital,
Pre-Refunded,
(AMBAC Insured),
7.300% 07/01/00...... Aaa AAA 550,150
1,000,000 Suburban Hospital,
Pre-Refunded,
6.000% 07/01/02...... Aaa AAA 1,073,630
The Johns Hopkins
Hospital:
700,000 7.000% 07/01/00........ Aa AA- 737,499
1,500,000 5.500% 07/01/07........ Aa AA- 1,585,080
1,000,000 Refunding,
5.000% 07/01/23........ Aa AA- 1,043,850
Maryland State, State
and Local Facilities
Loan, GO:
1,000,000 Second Series,
Pre-Refunded,
5.000% 08/01/07...... Aaa AAA 1,038,520
3,000,000 Third Series,
Pre-Refunded,
5.000% 10/15/06...... Aaa AAA 3,119,400
Maryland State,
Transportation
Authority Revenue,
GO:
1,250,000 6.100% 09/01/01........ Aa AA 1,324,287
3,235,000 4.375% 12/15/03........ Aa AA 3,240,046
2,285,000 Maryland State,
Transportation
Authority, Special
Obligation Revenue,
(Baltimore-
Washington D.C.
International Airport
Project),
Series A, AMT,
(FGIC Insured),
6.400% 07/01/19...... Aaa AAA 2,416,365
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,005,000 Maryland Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series A,
6.650% 09/01/98...... Aa AA $ 1,030,859
Montgomery County,
Maryland,
Consolidated Public
Improvement Revenue,
GO, Series A:
1,000,000 4.900% 10/01/07........ Aaa AAA 1,025,410
1,000,000 5.375% 05/01/08........ Aaa AAA 1,062,610
500,000 Pre-Refunded,
6.700% 04/01/06...... Aaa AAA 549,225
1,000,000 Montgomery County,
Maryland, GO,
Pre-Refunded,
6.125% 10/01/01...... Aaa AAA 1,087,570
1,000,000 Montgomery County,
Maryland, Housing
Opportunities
Commission, Single-
family Mortgage
Revenue, Series A,
5.400% 07/01/08...... Aa2 NR 1,014,420
1,575,000 Montgomery County,
Maryland, Parking
Revenue, Bethesda
Parking Lot District,
Series A,
(FGIC Insured),
5.700% 06/01/00...... Aaa AAA 1,639,229
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 2,116,960
1,535,000 7.000% 01/01/01........ Aaa AAA 1,662,328
630,000 Ocean City, Maryland,
GO, Pre-Refunded,
(MBIA Insured),
6.100% 11/01/01...... Aaa AAA 685,371
Prince Georges County,
Maryland,
Consolidated Public
Improvement Revenue,
GO:
1,000,000 6.500% 07/01/02........ A1 AA- 1,089,550
1,000,000 5.600% 01/15/03........ A1 AA- 1,057,480
1,000,000 Prince Georges County,
Maryland, GO, Series
A,
(MBIA Insured),
5.400% 03/01/02...... Aaa AAA 1,045,860
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 52
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding,
(FSA Insured):
$ 800,000 6.600% 06/30/00........ Aaa AAA $ 851,448
2,000,000 5.100% 06/15/05........ Aaa AAA 2,064,140
1,000,000 Rockville, Maryland,
GO,
4.750% 04/15/05...... Aa1 AA+ 1,015,060
1,000,000 St. Mary's County,
Maryland, GO,
(MBIA Insured),
5.700% 03/01/08...... Aaa AAA 1,081,530
University of Maryland,
Auxiliary Facilities
and Tuition Revenue,
Series A:
745,000 6.000% 02/01/04........ Aa AA+ 795,884
1,000,000 6.300% 02/01/08........ Aa AA+ 1,082,080
1,000,000 6.300% 02/01/10........ Aa AA+ 1,080,120
Washington County,
Maryland, GO:
500,000 6.400% 12/01/00........ A1 A+ 522,680
1,000,000 Series F,
(FGIC Insured),
5.250% 01/01/06...... Aaa AAA 1,044,010
1,000,000 Washington County,
Maryland, Sanitation
District Authority,
Series F,
(FGIC Insured),
5.250% 01/01/06...... Aaa AAA 1,044,010
Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply Revenue,
GO:
1,000,000 5.000% 06/01/03........ Aa1 AA 1,033,810
1,000,000 5.600% 06/01/15........ Aa1 AA 1,031,630
-----------
87,017,227
-----------
COLORADO -- 1.3%
3,800,000 E-470 Public Highway
Authority Revenue,
Colorado, Series B,
(MBIA Insured),
5.470% 09/01/18+..... Aaa AAA 1,221,358
-----------
GUAM -- 0.3%
250,000 Government of Guam, GO,
Series A,
5.200% 11/15/08...... NR BBB 249,775
-----------
ILLINOIS -- 1.2%
5,000,000 Metropolitan Pier and
Exposition Authority,
Illinois, Dedicated
State Tax Revenue,
Series A,
(MBIA Insured),
6.250% 06/15/24+..... Aaa AAA 1,134,900
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 1.1%
$1,000,000 Puerto Rico Municipal
Finance Agency,
Series B,
5.000% 07/01/99...... Baa1 A- $ 1,017,550
-----------
TEXAS -- 0.3%
1,000,000 Bastrop, Texas,
Independent School
District, Revenue
Refunding, GO,
5.650% 02/15/18+..... Aaa AAA 329,080
-----------
VIRGINIA -- 1.2%
1,085,000 Metropolitan
Washington, D.C.,
Airports Authority,
Virginia, General
Airports Revenue,
AMT, Series B,
(FGIC Insured),
5.750% 10/01/03...... Aaa AAA 1,157,999
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $88,469,313)............ 92,127,889
===========
SHARES
------
MONEY MARKET FUND -- 1.4%
(Cost $1,351,000)
1,351,000 AIM Tax-Exempt Fund......... 1,351,000
===========
TOTAL INVESTMENTS
(Cost $89,820,313*).................... 98.8% 93,478,889
OTHER ASSETS AND
LIABILITIES (NET)...................... 1.2 1,090,328
----- -----------
NET ASSETS............................... 100.0% $94,569,217
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown is the yield to maturity.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FHA Federal Housing Authority
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
Nations Intermediate Maryland Municipal Bond Fund had the following insurance
concentrations greater than 10% at September 30, 1997 (as a percentage of net
assets):
FGIC 19.0%
MBIA 12.5%
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 53
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED) (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.0%
MARYLAND -- 77.1%
Anne Arundel County,
Maryland,
Consolidated Public
Improvement
Revenue, GO:
$ 500,000 5.300% 04/01/10...... Aa1 AA+ $ 515,435
500,000 5.250% 07/15/11...... Aa1 AA+ 506,660
150,000 Baltimore, Maryland,
Consolidated Public
Improvement
Revenue, GO, AMT,
Series B, (FGIC
Insured),
6.300% 10/15/08.... Aaa AAA 160,617
250,000 Baltimore, Maryland,
Convention Center
Revenue, (FGIC
Insured),
6.150% 09/01/19.... Aaa AAA 264,535
250,000 Baltimore, Maryland,
Port Facilities
Revenue,
Consolidated Coal
Sales, Series 85, AA-/
6.500% 12/01/10.... Aa3 A-1+ 272,973
Baltimore, Maryland,
Wastewater Projects
Revenue, Series A,
(FGIC Insured):
500,000 5.000% 07/01/22...... Aaa AAA 483,425
500,000 5.000% 07/01/24...... Aaa AAA 482,800
300,000 Baltimore County,
Maryland, Mortgage
Revenue Refunding,
(Kingswood Common
III-A), (FHA
Insured),
5.750% 11/01/20.... NR AAA 302,682
610,000 Bel Air, Maryland,
Industrial
Development
Revenue, (May
Department Stores
Company Project),
6.375% 10/01/99.... NR A 631,978
250,000 Cumberland, Maryland,
Revenue Refunding,
GO, Series A, (FGIC
Insured),
5.250% 05/01/21.... Aaa AAA 244,692
400,000 Howard County,
Maryland, Special
Facilities Revenue,
Series A,
6.000% 02/15/21.... Aa AA- 423,636
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,000,000 Maryland State,
Community
Development
Administration,
Department of
Housing and
Community
Development, Single
Family Program --
First Series,
(MHF/FHA Insured),
5.600% 04/01/18.... Aa2 NR $ 1,008,440
Maryland State,
Health and Higher
Education
Facilities
Authority Revenue:
110,000 (Anne Arundel Medical
Center), (AMBAC
Insured),
5.250% 07/01/13.... Aaa AAA 110,337
100,000 (Frederick Memorial
Hospital), (FGIC
Insured),
5.250% 07/01/13.... Aaa AAA 102,366
200,000 (Greater Baltimore
Medical Center),
(FGIC Insured),
5.000% 07/01/13.... Aaa AAA 197,624
290,000 (Memorial Hospital of
Cumberland),
6.500% 07/01/10.... A A 313,527
Project and
Refunding:
150,000 (Doctors Community
Hospital),
5.750% 07/01/13.... Baa BBB- 150,636
200,000 (Peninsula Regional
Medical Center),
5.000% 07/01/08.... A A 202,034
300,000 (The Johns Hopkins
Hospital),
5.600% 07/01/09.... Aa AA- 313,542
370,000 Maryland State,
Industrial
Development
Financing
Authority,
(American Center
Physics
Headquarters),
6.375% 01/01/12.... NR BBB 394,316
500,000 Maryland State,
Stadium Authority,
Lease Revenue,
(Ocean City
Convention Center),
5.375% 12/15/13.... Aa AA 505,205
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 54
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 195,000 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 $ 206,211
Maryland State,
Transportation
Authority Revenue,
(Transportation
Facilities
Project):
300,000 5.750% 07/01/15...... A1 A+ 307,602
500,000 6.800% 07/01/16...... Aaa AAA 590,180
Maryland Water
Quality Financing
Administration,
Revolving Loan Fund
Revenue, Series A:
250,000 5.400% 09/01/10...... Aa AA 255,263
200,000 6.550% 09/01/14...... Aa AA 218,678
250,000 Montgomery County,
Maryland, Housing
Opportunities
Commission,
Multi-family
Mortgage Revenue,
Series A,
6.000% 07/01/14.... Aa NR 258,918
300,000 Northeast, Maryland,
Solid Waste
Disposal Authority
Revenue Refunding,
(Montgomery County
Project), Series A,
AMT,
6.300% 07/01/16.... A NR 317,082
500,000 Prince Georges
County, Maryland,
Housing Authority
Mortgage Revenue,
(Laurel -- Oxford), A1/
5.350% 10/01/07+... VMIG1 NR 500,000
500,000 Prince Georges
County, Maryland,
PCR Refunding,
(Potomac Electric
Power Project),
5.750% 03/15/10.... A1 A 540,240
Prince Georges
County, Maryland,
Project and
Refunding Revenue,
(Dimensions Health
Corporation), GO:
175,000 5.375% 07/01/14...... A NR 174,125
500,000 5.300% 07/01/24...... A NR 486,030
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$ 500,000 Prince Georges
County, Maryland,
Solid Waste
Management Systems
Authority, Revenue
Refunding, (FSA
Insured),
5.200% 06/15/06.... Aaa AAA $ 517,610
500,000 Prince Georges
County, Maryland,
Stormwater
Management, GO,
5.500% 03/15/13.... Aa AA 508,545
1,000,000 University of
Maryland, System
Auxiliary Facility
and Tuition
Revenue, Series A,
5.125% 04/01/13.... Aa3 AA+ 1,004,750
200,000 Washington County,
Maryland,
Consolidated Public
Improvement
Revenue, GO, (MBIA
Insured),
5.800% 01/01/15.... Aaa AAA 210,810
320,000 Washington County,
Maryland,
Sanitation District
Refunding, GO,
Series F, (FGIC
Insured),
5.000% 01/01/04.... Aaa AAA 329,846
-----------
14,013,350
-----------
DISTRICT OF COLUMBIA -- 3.3%
Washington, D.C.,
Metropolitan Area
Transportation
Authority Revenue,
Refunding, (FGIC
Insured):
200,000 4.900% 01/01/05...... Aaa AAA 204,146
350,000 6.000% 07/01/10...... Aaa AAA 386,862
-----------
591,008
-----------
GUAM -- 3.3%
600,000 Government of Guam,
GO, Series A,
5.200% 11/15/08.... NR BBB 599,460
-----------
ILLINOIS -- 3.9%
2,520,000 Metropolitan Pier and
Exposition
Authority, Illinois
Dedicated State Tax
Revenue, Capital
Appreciation,
(McCormick Place
Exposition), Series
A, (FGIC Insured),
6.750%
06/15/20++......... Aaa AAA 717,394
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 55
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 7.4%
$ 500,000 Puerto Rico Electric
Power Authority,
Power Revenue
Refunding,
Series Y, (MBIA
Insured),
6.500% 07/01/06.... Aaa AAA $ 573,595
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 514,885
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- 256,688
-----------
1,345,168
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $16,474,064)........... 17,266,380
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 4.0%
(Cost $722,000)
722,000 AIM Tax-Exempt Fund........ $ 722,000
===========
TOTAL INVESTMENTS
(Cost $17,196,064*).................... 99.0% 17,988,380
OTHER ASSETS AND
LIABILITIES (NET)...................... 1.0 180,305
----- -----------
NET ASSETS............................... 100.0% $18,168,685
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1997.
++ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
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
MHF Maryland Housing Fund
NR Not Rated
PCR Pollution Control Revenue
Nations Maryland Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
FGIC 21.0%
Nations Maryland Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
Housing Revenue 16.7%
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 56
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.8%
NORTH CAROLINA -- 97.2%
Buncombe County, North
Carolina, GO:
$1,000,000 5.000% 03/01/02....... Aa2 AA $ 1,031,520
1,000,000 5.000% 03/01/03....... Aa2 AA 1,035,440
Buncombe County, North
Carolina,
Metropolitan Sewer
District, Sewer
System Revenue:
1,250,000 Series A,
6.750% 07/01/09..... AAA NR 1,384,575
995,000 Pre-refunded, Series
B,
6.750% 07/01/02..... AAA NR 1,116,788
5,000 Unrefunded, Series B,
6.750% 07/01/16..... A A+ 5,368
1,000,000 Charlotte, North
Carolina, COP,
(Convention
Facilities Project),
(AMBAC Insured),
6.750% 12/01/21..... AAA AAA 1,116,610
1,000,000 Charlotte, North
Carolina, GO,
6.750 06/01/01...... AAA AAA 1,055,270
Charlotte, North
Carolina, Health
Care Systems Revenue
Refunding,
(Mecklenburg
Hospital Authority):
2,000,000 6.375% 01/01/09....... Aa3 AA 2,162,200
1,130,000 6.250% 01/01/20....... Aa3 AA 1,217,620
Charlotte, North
Carolina, Public
Improvement, GO,
Series A:
1,340,000 5.300% 04/01/05....... Aaa AAA 1,419,864
1,000,000 6.900% 10/01/05....... AAA AAA 1,098,150
1,800,000 6.500% 02/01/07....... AAA AAA 1,964,790
Charlotte, North
Carolina, Refunding,
GO:
1,000,000 4.500% 02/01/03....... Aaa AAA 1,013,680
3,055,000 5.000% 06/01/05....... Aaa AAA 3,181,110
Charlotte, North
Carolina, Water and
Sewer, GO:
1,000,000 6.750% 06/01/01....... AAA AAA 1,055,270
1,670,000 5.500% 05/01/06....... Aaa AAA 1,798,874
1,000,000 5.800% 02/01/16....... Aaa AAA 1,051,510
Cleveland County,
North Carolina, GO,
(FGIC Insured):
2,500,000 5.100% 06/01/01....... Aaa AAA 2,579,075
2,500,000 5.100% 06/01/02....... Aaa AAA 2,587,925
1,000,000 5.100% 06/01/05....... Aaa AAA 1,038,460
1,000,000 (AMBAC Insured),
7.100% 06/01/00..... Aaa AAA 1,076,890
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$2,000,000 Coastal Regional Solid
Waste Management
Authority, Solid
Waste Disposal
System,
6.300% 06/01/04..... A BBB $ 2,162,180
500,000 Concord, North
Carolina, GO,
6.200% 06/01/05..... Aa A+ 543,480
1,000,000 Concord, North
Carolina, Utilities
System, (MBIA
Insured),
5.200% 12/01/02..... Aaa AAA 1,043,140
1,000,000 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight),
Series D,
6.200% 10/01/09..... NR BBB 1,054,430
Durham and Wake
County, North
Carolina, GO:
1,000,000 4.500% 05/01/00....... Aaa AAA 1,012,380
2,000,000 5.750% 02/01/06....... Aaa AAA 2,137,700
1,500,000 5.200% 03/01/07....... Aaa AAA 1,568,715
Durham and Wake
County, North
Carolina, Special
Apartment District,
GO:
2,300,000 5.000% 04/01/03....... Aaa AAA 2,388,412
1,720,000 5.750% 04/01/03....... Aaa AAA 1,834,741
Fayetteville, North
Carolina, Public
Works Commission
Revenue Refunding,
(FGIC Insured):
1,500,000 4.400% 03/01/03....... Aaa AAA 1,505,415
2,000,000 4.500% 03/01/04....... Aaa AAA 2,009,900
1,000,000 6.750% 03/01/07....... Aaa AAA 1,081,190
1,000,000 Fayetteville, North
Carolina, GO, (FGIC
Insured),
4.700% 05/01/01..... Aaa AAA 1,017,780
2,000,000 Forsyth County, North
Carolina, Refunded,
GO, Series A,
4.750% 03/01/06..... Aaa AAA 2,043,080
1,050,000 Galena Park Texas,
Independent School
District, GO,
(PSF-GTD Insured),
5.000% 08/15/21..... Aaa NR 998,004
500,000 Gastonia, North
Carolina, Water
Revenue and Street
Improvement, (FGIC
Insured),
5.200% 04/01/02..... Aaa AAA 519,075
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 57
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,185,000 Greensboro, North
Carolina, Enterprise
System, Revenue
Bond, Series A,
6.500% 06/01/04..... A1 AA- $ 1,326,667
2,000,000 Greenville, North
Carolina, Combined
Enterprises Revenue,
6.000% 09/01/10..... A1 A+ 2,132,040
1,000,000 Guilford County, North
Carolina, GO,
5.300% 04/01/04..... Aa1 AA+ 1,049,990
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 994,460
Henderson County,
North Carolina,
School and Community
College, GO:
1,000,000 6.500% 06/01/05....... A1 A+ 1,085,990
500,000 6.500% 06/01/08....... A1 A+ 541,400
1,250,000 High Point, North
Carolina, GO,
6.900% 06/01/04..... Aa3 AA 1,361,650
1,000,000 Johnston County, North
Carolina,
6.900% 06/01/98..... A2 A 1,020,280
1,160,000 Lee County, North
Carolina, GO,
6.000% 02/01/06..... A1 A+ 1,245,469
1,000,000 Lewisville Texas,
Independent School
District, GO,
6.750% 08/15/03..... Aaa NR 1,123,180
750,000 Lower Cape Fear, North
Carolina, Water and
Sewer Authority
Revenue, AMT,
5.200% 03/01/04..... A BBB 771,384
3,650,000 Martin County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority
Revenue,
(Wayerhaeuser
Company Project),
8.500% 06/15/99..... A2 A 3,914,990
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
Mecklenburg County,
North Carolina, GO:
$1,000,000 6.600% 04/01/99....... Aaa AAA $ 1,039,190
1,000,000 6.750% 04/01/00....... AAA AAA 1,065,120
1,000,000 5.400% 04/01/03....... Aaa AAA 1,056,400
1,000,000 6.200% 04/01/06....... AAA AAA 1,084,710
1,000,000 Mecklenberg County,
North Carolina,
Industrial
Facilities and
Pollution Control
Finance Authority
Revenue Refunding,
(Fluor Corporation
Project),
5.250% 12/01/09..... A2 A+ 1,007,150
Morganton, North
Carolina, Water and
Sewer, Revenue
Bonds, GO, (FGIC
Insured):
1,195,000 5.700% 06/01/11....... Aaa AAA 1,272,376
1,000,000 5.700% 06/01/13....... Aaa AAA 1,058,150
2,220,000 New Hanover County,
North Carolina, GO,
5.500% 03/01/10..... Aa A+ 2,334,351
North Carolina Housing
Finance Agency,
Single-family
Housing Revenue:
1,950,000 Series B,
6.900% 07/01/24..... Aa2 NR 2,071,661
Series R:
820,000 6.350% 03/01/03....... Aa2 AA 864,510
825,000 6.350% 09/01/03....... Aa2 AA 862,513
925,000 Series Y,
6.300% 09/01/15..... Aaa AA 975,237
North Carolina
Municipal Power
Agency, Refunding
#1, Catawba Electric
Revenue Refunding:
2,000,000 (AMBAC-TCRS Insured),
6.000% 01/01/15..... Aaa AAA 2,003,860
3,000,000 (FGIC Insured),
5.200% 01/01/00..... Aaa AAA 3,071,430
(FSA Insured):
1,000,000 5.500% 01/01/01....... Aaa AAA 1,040,610
1,000,000 7.000% 01/01/06....... AAA A- 1,082,450
2,000,000 (MBIA-IBC Insured),
7.250% 01/01/07..... Aaa AAA 2,378,920
North Carolina State,
Educational
Authority Revenue,
AMT:
1,000,000 5.100% 12/01/00....... NR AA- 1,029,380
1,000,000 Series A,
5.300% 07/01/03..... A NR 1,009,280
1,000,000 Series C,
6.625% 10/01/08..... Aa1 AA+ 1,091,860
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 58
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
North Carolina,
Medicare Care,
Community Health
Care Facility
Revenue, (Stanley
Memory Hospital
Project), (AMBAC
Insured):
$1,000,000 5.000% 05/01/00....... Aa3 AA $ 1,019,870
2,000,000 5.250% 06/01/00....... Aa3 AA 2,058,000
1,000,000 5.200% 10/01/00....... Aa3 AA 1,029,360
1,930,000 5.400% 06/01/02....... A1 A+ 2,007,238
1,620,000 5.600% 06/01/04....... A1 A+ 1,711,076
2,000,000 5.250% 10/01/04....... Aa3 AA 2,085,580
2,000,000 5.000% 02/15/05....... Aaa AAA 2,059,540
1,000,000 5.300% 10/01/05....... Aa3 AA 1,047,790
1,000,000 5.250% 10/01/06....... Aaa AAA 1,042,980
1,500,000 5.200% 10/01/13....... A1 A+ 1,485,540
3,000,000 5.500% 10/01/14....... Aa3 AA 3,048,480
4,000,000 5.250% 10/01/16....... Aaa AAA 3,938,600
2,000,000 5.250% 06/01/17....... Aa3 AA 1,994,980
3,000,000 6.250% 06/01/17....... A1 A+ 3,202,140
1,000,000 5.250% 05/01/21....... Aa3 AA 980,080
1,800,000 North Carolina State,
Capital Improvement,
GO, Series A,
4.700% 02/01/01..... Aaa AAA 1,834,380
North Carolina State,
GO, Series A:
2,000,000 6.100% 03/01/01....... Aaa AAA 2,127,804
4,000,000 5.100% 03/01/06....... Aaa AAA 4,192,200
1,625,000 Orange County, North
Carolina, GO,
5.500% 02/01/12..... Aa1 AA+ 1,693,218
2,000,000 Piedmont Triad Airport
Authority, North
Carolina, Revenue,
(MBIA Insured),
Refunding, Series A,
6.800% 07/01/05..... Aaa AAA 2,168,820
Pitt County, North
Carolina, Revenue
Refunding, (Pitt
County Memorial
Hospital):
1,240,000 5.375% 12/01/10....... Aa AA- 1,272,649
1,000,000 Series A,
6.200% 12/01/99..... AAA AA- 1,046,190
1,000,000 Raleigh, North
Carolina, Combined
Enterprise System
Revenue,
5.250% 03/01/07..... Aa AA+ 1,050,760
1,910,000 Raleigh, North
Carolina, GO,
5.300% 06/01/16..... Aaa AAA 1,940,273
2,000,000 Randolph County, North
Carolina, GO,
6.250% 05/01/08..... A1 A+ 2,162,240
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000,000 Robeson County, North
Carolina, Industrial
Facilities &
Pollution Control,
Revenue,
6.400% 12/01/06..... NR AA- $ 1,128,560
750,000 Rutherford County,
North Carolina, GO,
(MBIA Insured),
6.400% 06/01/01..... Aaa AAA 806,573
1,000,000 Surry County, North
Carolina, GO, (AMBAC
Insured),
6.250% 04/01/99..... Aaa AAA 1,033,530
Union County, North
Carolina, School
District, GO:
1,000,000 6.500% 04/01/03....... A1 A+ 1,085,050
500,000 5.800% 03/01/05....... A1 A+ 531,930
3,500,000 University of North
Carolina, Chapel
Hill, Revenue
Refunding, Utilities
Systems,
5.200% 08/01/06..... Aa AA 3,648,854
University of North
Carolina, Chapel
Hill Hospital,
Revenue:
1,000,000 5.400% 02/15/01....... Aa3 AA 1,039,390
1,000,000 5.500% 02/15/02....... Aa3 AA 1,048,150
2,500,000 5.000% 02/15/29....... Aa3 AA 2,353,050
University of North
Carolina, Charlotte,
Revenue Refunding,
Housing and Dining
Systems, Series M:
1,000,000 4.800% 01/01/04....... Aaa AAA 1,018,860
1,000,000 5.000% 08/01/09....... Aa2 AA 1,013,800
1,600,000 University of North
Carolina, Revenue,
Refunding Utilities
System,
5.000% 08/01/11..... Aa2 AA 1,605,408
Wake County, North
Carolina, GO:
1,510,000 4.900% 03/01/04....... Aaa AAA 1,559,453
1,000,000 ETM,
6.500% 02/01/99..... NR AAA 1,034,560
Refunding:
2,000,000 4.200% 04/01/99....... Aaa AAA 2,009,840
1,000,000 4.700% 04/01/05....... Aaa AAA 1,021,560
2,000,000 Pre-refunded,
6.500% 02/01/99..... NR AAA 2,076,960
2,065,000 Wake County, North
Carolina, Hospital
Revenue, (MBIA
Insured),
5.125% 10/01/26..... Aaa AAA 2,026,467
1,000,000 Wake County, North
Carolina, Public
Improvement Revenue,
GO,
4.600% 02/01/06..... Aaa AAA 1,013,080
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 59
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,200,000 Wayne County, North
Carolina, GO,
Revenue Refunding,
4.900% 04/01/05..... Aaa AAA $ 1,231,812
Wilmington North
Carolina, Public
Improvement,
Refunded, GO, (FGIC
Insured), Series A:
1,000,000 5.000% 04/01/11....... Aaa AAA 1,009,790
1,000,000 5.000% 04/01/13....... Aaa AAA 1,000,000
1,370,000 Series B,
5.000% 04/01/08..... Aaa AAA 1,415,237
Winston-Salem North
Carolina, Water and
Sewer Systems,
Revenue:
2,295,000 5.500% 06/01/06....... Aa2 AA+ 2,452,988
1,000,000 5.500% 06/01/07....... Aa2 AA+ 1,071,170
------------
180,313,129
------------
PUERTO RICO -- 0.9%
1,000,000 Puerto Rico Electric
Power Authority,
Power Revenue
Refunding, (MBIA
Insured), Series Y,
7.000% 07/01/07..... Aaa AAA 1,189,410
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 533,335
------------
1,722,745
------------
WASHINGTON -- 0.7%
1,150,000 Washington State
Public Power Supply
System, Revenue
Refunding, (Nuclear
Project Number 2),
(MBIA Insured),
Series A,
5.800% 07/01/07..... Aa AA 1,238,631
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $173,949,277).......... 183,274,505
============
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 2.0%
(Cost $3,795,000)
3,795,000 AIM Tax-Exempt Fund........ $ 3,795,000
============
TOTAL INVESTMENTS
(Cost $177,744,278*).................. 100.8% 187,069,505
OTHER ASSETS AND
LIABILITIES (NET)..................... (0.8) (1,633,626)
----- ------------
NET ASSETS.............................. 100.0% $185,435,879
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AMT Alternative Minimum Tax
COP Certificates of Participation
ETM Escrowed to Maturity
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
Nations North Carolina Intermediate Municipal Bond Fund had the following
insurance concentrations greater than 10% at September 30, 1997 (as a percentage
of net assets):
AMBAC 18.3%
FGIC 10.7%
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 60
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.4%
NORTH CAROLINA -- 93.3%
$1,000,000 Buncombe County, North
Carolina,
Metropolitan Sewer
District, Sewer
System Revenue,
Series B,
Pre-refunded,
6.750% 07/01/02...... Aaa NR $ 1,124,700
1,500,000 Charlotte, North
Carolina, Health Care
Systems Revenue
Refunding,
Mecklenburg Hospital
Authority,
6.250% 01/01/20...... Aa AA 1,616,310
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 1,075,490
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 994,460
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 1,995,480
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+ 2,014,300
Mecklenburg County,
North Carolina,
Refunding, GO:
1,000,000 5.400% 03/01/00........ Aaa AAA 1,031,480
1,000,000 6.000% 04/01/11........ Aaa AAA 1,116,120
1,000,000 Monroe, North Carolina,
Combined Enterprise
System Revenue,
6.000% 03/01/14...... A A 1,048,380
<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 Morganton, North
Carolina, Water and
Sewer Revenue, GO,
(FGIC Insured),
5.600% 06/01/10...... Aaa AAA $ 1,059,750
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 1,074,500
North Carolina Housing
Finance Agency:
830,000 Series U,
6.700% 03/01/18...... Aa A+ 879,783
970,000 Single-family Housing
Revenue, Series W,
6.200% 09/01/09...... Aa A+ 1,018,549
North Carolina Medical
Care Commission,
Hospital Revenue
Refunding:
1,130,000 (AMBAC Insured),
5.250% 02/15/07...... Aaa AAA 1,181,856
1,000,000 (Grace Hospital Inc.
Project), (AMBAC
Insured),
5.250% 10/01/16...... Aaa AAA 984,650
1,000,000 (Rex Hospital Project),
6.250% 06/01/17...... A1 A+ 1,067,380
1,000,000 North Carolina
Municipal Power
Agency, Refunding #1,
Catawba Electric
Revenue Refunding,
(FSA Insured),
6.200% 01/01/18...... Aaa AAA 1,073,540
1,000,000 North Carolina State,
University and
College Improvements,
GO,
5.100% 06/01/06...... Aaa AAA 1,049,210
1,500,000 Onslow County, North
Carolina, Combined
Enterprise System
Revenue, (MBIA
Insured),
5.875% 06/01/09...... Aaa AAA 1,620,900
1,000,000 Orange County, North
Carolina, GO,
5.500% 02/01/14...... Aa1 AA+ 1,036,440
1,000,000 Pitt County, North
Carolina, Hospital
Revenue, (Pitt County
Memorial Hospital
Project),
5.250% 12/01/21...... Aa AA- 974,540
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 61
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,500,000 University North
Carolina, Chapel
Hill, Hospital
Revenue,
5.000% 02/15/29...... Aa3 AA $ 1,411,830
1,000,000 Wilmington, North
Carolina, Water
Authority, GO,
5.700% 06/01/15...... A1 A+ 1,048,710
-----------
27,498,358
-----------
PUERTO RICO -- 2.1%
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- 616,050
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $26,437,464)............ 28,114,408
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUNDS -- 3.4%
(Cost $1,004,000)
1,004,000 AIM Tax-Exempt Fund......... $ 1,004,000
===========
TOTAL INVESTMENTS
(Cost $27,441,464*).................... 98.8% 29,118,408
OTHER ASSETS AND
LIABILITIES (NET)...................... 1.2 353,272
----- -----------
NET ASSETS............................... 100.0% $29,471,680
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
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 North Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 1997 (as a percentage of net
assets):
Pollution Control Revenue/Industrial Development Revenue 24.6%
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 62
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.9%
SOUTH CAROLINA -- 98.9%
Anderson County, South
Carolina, Revenue
Refunding GO:
$1,100,000 6.400% 04/01/03....... A A $ 1,204,797
1,300,000 6.500% 04/01/04....... A A 1,413,399
Anderson County, South
Carolina, Refunding,
Sewer Authority,
(FGIC Insured):
1,240,000 5.200% 07/01/03....... Aaa AAA 1,291,125
1,000,000 5.500% 07/01/06....... Aaa AAA 1,058,730
1,500,000 5.600% 07/01/07....... Aaa AAA 1,590,750
1,000,000 5.0600% 07/01/08...... Aaa AAA 1,054,380
Beaufort County, South
Carolina, School
District, GO:
1,000,000 6.650% 02/01/99....... Aaa AAA 1,029,100
2,000,000 6.300% 02/01/02....... Aaa AAA 2,124,080
1,000,000 6.400% 02/01/03....... Aaa AAA 1,062,390
2,000,000 (AMBAC Insured),
6.250% 02/01/01..... Aaa AAA 2,125,620
Beaufort County, South
Carolina, Revenue
Refunding GO, (MBIA
Insured):
1,270,000 5.550% 12/01/07....... Aaa AAA 1,316,114
1,000,000 5.600% 12/01/08....... Aaa AAA 1,034,950
1,415,000 5.650% 12/01/09....... Aaa AAA 1,462,303
2,000,000 Berkeley County, South
Carolina, Pollution
Control Facilities,
Revenue Refunding,
(Alumax Inc.
Project), (Royal
Bank of Canada LOC),
4.150% 12/01/08+.... Aa2 NR 2,000,000
Berkeley County, South
Carolina, Refunding
and Improvement
Authority, GO, (FGIC
Insured):
1,000,000 5.300% 05/01/04....... Aaa AAA 1,049,190
1,000,000 5.300% 05/01/05....... Aaa AAA 1,057,260
1,000,000 5.500% 05/01/06....... Aaa AAA 1,060,330
Berkeley County, South
Carolina, Water and
Sewer Authority
Revenue Refunding,
(MBIA Insured):
500,000 6.100% 06/01/98....... Aaa AAA 507,525
1,000,000 7.000% 06/01/01....... Aaa AAA 1,111,400
1,000,000 Camden, South
Carolina, Combined
Public Utilities
Revenue, Refunding
and Improvement,
(MBIA Insured),
5.500% 03/01/17..... Aaa AAA 1,011,790
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
Charleston County,
South Carolina,
Hospital Facilities,
Revenue Refunding
and Improvement:
$3,000,000 (Bon Secours Health
Systems Project),
(FSA Insured),
5.000% 08/15/10..... Aaa AAA $ 3,084,660
1,000,000 (Medical Society
Health Project),
(MBIA Insured),
6.000% 10/01/09..... Aaa AAA 1,065,360
Charleston County,
South Carolina, Park
and Recreation
Commission District,
GO:
1,000,000 4.900% 02/01/99....... Aa AA- 1,013,010
1,930,000 5.000% 02/01/00....... 1,969,507
1,000,000 Charleston County,
South Carolina,
Public Improvement
Authority, GO, (ST
Aid Withhldg),
5.500% 06/01/14..... Aa AA 1,022,040
1,040,000 Charleston County,
South Carolina,
Solid Waste User Fee
Revenue, (MBIA
Insured),
5.800% 01/01/06..... Aaa AAA 1,123,335
Charleston County,
South Carolina,
Water and Sewer
Improvements,
Revenue Refunding:
1,345,000 5.200% 01/01/99....... A AA 1,365,592
1,000,000 5.750% 01/01/04....... A AA 1,064,770
1,645,000 Cherokee County, South
Carolina, School
District No. 1, GO,
5.000% 03/01/02..... Aa AA 1,693,511
500,000 Chester County, South
Carolina, Industrial
Development
Authority Revenue
Refunding, (Springs
Industries Inc.
Project),
7.350% 02/01/14..... NR BBB+ 542,055
Chester County, South
Carolina, School
District, GO:
1,000,000 6.300% 02/01/00....... NR AA 1,066,890
1,125,000 6.450% 02/01/00....... NR AA 1,203,975
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 63
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Clemson University,
South Carolina,
University & College
Improvements
Revenue:
$1,500,000 6.550% 06/01/07....... Aaa AAA $ 1,604,925
1,000,000 6.600% 06/01/08....... Aaa AAA 1,071,620
1,000,000 Columbia, South
Carolina, Auto
Parking Revenue,
(AMBAC Insured),
5.750% 12/01/09....... Aaa AAA 1,068,200
Columbia, South
Carolina, Waterworks
and Sewer System,
Revenue Refunding:
2,420,000 6.200% 02/01/99....... Aa AA 2,492,043
1,285,000 6.500% 02/01/02....... Aa AA 1,392,516
6,000,000 5.500% 02/01/09....... Aa AA 6,385,080
2,700,000 Capital Appreciation,
6.900% 02/01/03++... Aa AA 2,144,907
1,000,000 Darlington County,
South Carolina,
Industrial
Development Revenue,
(Nucor Corporation
Project), Series A,
5.750% 08/01/23..... A1 AA- 1,008,380
Darlington County,
South Carolina,
Pollution Control
Revenue:
1,500,000 6.600% 11/01/10....... A2 A 1,646,955
1,000,000 (MBIA Insured),
6.600% 11/01/10..... Aaa AAA 1,115,480
1,300,000 Dorchester County,
South Carolina,
School District No.
2, GO, (MBIA SCSDE
Insured),
6.800% 07/01/99..... Aaa NR 1,386,320
Florence South
Carolina, Water and
Sewer Revenue
Refunding, (AMBAC
Insured):
1,000,000 4.700% 03/01/01....... Aaa AAA 1,014,470
1,250,000 5.15% 03/01/06........ Aaa AAA 1,293,550
2,000,000 Georgetown County,
South Carolina,
Pollution Control
and Industrial
Revenue Refunding,
6.250% 06/15/05..... A3 A- 2,148,340
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
Grand Strand Water and
Sewer Authority
Revenue Refunding,
(MBIA Insured):
$1,000,000 5.700% 06/01/00....... Aaa AAA $ 1,037,440
1,000,000 5.900% 06/01/01....... Aaa AAA 1,054,410
1,000,000 6.000% 06/01/02....... Aaa AAA 1,068,980
1,950,000 6.300% 06/01/05....... Aaa AAA 2,124,427
1,000,000 6.400% 06/01/07....... Aaa AAA 1,092,730
Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding:
2,110,000 7.200% 05/01/00....... Aa AAA 2,305,196
1,000,000 Series A,
5.400% 05/01/07..... Aa AA- 1,043,280
4,000,000 Series B,
5.250% 05/01/17..... Aa3 AA- 3,951,600
Series C:
1,000,000 5.300% 05/01/04....... NR AA- 1,031,320
4,000,000 5.400% 05/01/05....... NR AA- 4,153,480
2,100,000 5.500% 05/01/11....... NR AA- 2,141,601
1,000,000 Greenville, South
Carolina, Industrial
Revenue Refunding,
(Monsanto Company
Project),
7.500% 10/01/07..... A1 NR 1,076,930
Greenville, South
Carolina, Waterworks
Revenue, Water
Utility
Improvements:
2,000,000 6.000% 02/01/06....... Aa1 AA 2,202,100
1,000,000 6.000% 02/01/08....... Aa1 AA 1,111,460
Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding
and Improvement,
(AMBAC Insured):
1,885,000 5.500% 12/01/06....... Aaa AAA 2,000,645
2,000,000 5.500% 12/01/07....... Aaa AAA 2,112,902
1,060,000 5.500% 12/01/08....... Aaa AAA 1,112,502
Greer, South Carolina,
Combined Public
Utilities, Revenue
Refunding and
Improvement, (AMBAC
Insured):
3,900,000 4.750% 09/01/11....... Aaa AAA 3,783,897
3,500,000 5.000% 09/01/17....... Aaa AAA 3,371,620
Horry County, South
Carolina, School
District, GO:
1,220,000 (SCSDE Insured),
7.000% 01/01/04..... Aa1 AA 1,336,242
1,275,000 (MBIA SCSDE Insured),
5.700% 03/01/16..... Aaa AAA 1,310,930
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 64
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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 Kershaw County, South
Carolina, School
District, GO, (SCSDE
Insured),
6.400% 07/01/06..... Aa1 AA $ 1,077,450
1,725,000 Lancaster County,
South Carolina,
School District, GO,
(MBIA Insured),
6.500% 07/01/07..... Aaa AAA 1,902,036
1,000,000 Lexington and Richland
Counties School
District, South
Carolina, GO,
6.450% 02/01/99..... Aa1 AA 1,032,730
2,000,000 Lexington, South
Carolina, Water and
Sewer Authority
Revenue,
5.450% 04/01/19..... Aa1 AA 1,977,540
Medical University of
South Carolina,
Hospital Facilities
Revenue, Series A:
2,100,000 6.400% 07/01/99....... A A+ 2,177,469
1,000,000 6.900% 07/01/99 A A+ 1,046,080
Refunding:
2,000,000 7.000% 07/01/01....... A A+ 2,167,100
4,500,000 7.000% 07/01/02....... A A+ 4,875,975
3,725,000 7.200% 07/01/05....... A A+ 4,023,000
2,500,000 Myrtle Beach, South
Carolina, Sewer and
Water Improvements,
Revenue Refunding,
(MBIA Insured),
5.000% 03/01/03..... A A+ 2,573,975
North Charleston,
South Carolina,
Refunding, GO:
1,750,000 5.600% 088/01/07...... A AA- 1,856,838
1,725,000 5.750% 08/01/08....... A AA- 1,840,127
1,000,000 North Charleston,
South Carolina,
Sewer, Revenue
Refunding,
6.000% 07/01/02..... Aaa AAA 1,072,300
3,025,000 Oconee County, South
Carolina, Pollution
Control, (Duke Power
Co. Project),
5.800% 04/01/14..... Aa A 3,116,688
Oconee County, South
Carolina, School
District, GO:
1,000,000 5.100% 01/01/13....... A A 995,520
Refunding, Series B:
1,500,000 6.000% 03/01/99....... A A 1,540,125
1,505,000 6.100% 03/01/00....... A A 1,568,662
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
Piedmont Municipal
Power Agency, South
Carolina, Electric
Revenue Refunding
(FGIC Insured):
$1,500,000 5.600% 01/01/00....... Aaa AAA $ 1,549,215
1,850,000 6.850% 01/01/07....... A A 2,014,391
Series A:
1,000,000 6.250% 01/01/13....... Aaa AAA 1,072,240
1,715,000 Unrefunded Balance,
6.125% 01/01/03..... Aaa AAA 1,848,101
Revenue Bonds, (MBIA
Insured):
9,000,000 Series B,
5.250% 01/01/09..... Aaa AAA 9,214,470
1,600,000 (South Carolina
Electric Company
Project),
6.000% 01/01/05..... Aaa AAA 1,748,016
Richland County, South
Carolina, GO:
1,000,000 6.250% 03/01/09....... NR AA 1,064,460
Series B:
2,020,000 4.750% 03/01/03....... Aa AA 2,061,511
2,250,000 4.950% 03/01/05....... Aa AA 2,316,038
Richland County, South
Carolina, PCR,
(Union Camp
Corporation
Project):
1,000,000 Series B,
6.625% 05/01/22....... A1 A- 1,073,990
Series C:
4,000,000 5.875% 11/01/02....... A1 A- 4,236,200
1,000,000 6.350% 11/01/07....... A1 A- 1,083,460
Richland County, South
Carolina, Revenue
Refunding and
Improvement:
2,040,000 5.900% 12/01/01....... Aa AA 2,174,456
1,500,000 7.125% 12/31/01....... NR A 1,532,295
2,120,000 Series B,
4.850% 03/01/04..... Aa AA 2,171,579
Richland County, South
Carolina, School
District:
5,000,000 No. 1, GO, (State Aid
Withholding),
4.625% 03/01/22..... Aa AA- 4,572,500
No. 2, Refunding
Series A, GO, (MBIA
Insured):
1,330,000 4.800% 03/01/03....... Aaa AAA 1,359,220
1,590,000 4.800% 03/01/04....... Aaa AAA 1,631,308
1,655,000 5.000% 03/01/05....... Aaa AAA 1,706,653
1,395,000 Richland County, South
Carolina, Solid
Waste Disposal
Facilities Revenue,
(Union Camp
Corporation
Project), Series A,
6.750% 05/01/22..... A1 A- 1,509,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 65
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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 Rock Hill, South
Carolina, Combined
Public Utility
Systems Revenue,
6.200% 01/01/03..... Aaa AAA $ 1,070,960
2,410,000 Rock Hill, South
Carolina, School
District No. 3,
Refunding, Series B,
(FGIC Insured),
5.900% 02/01 02..... Aaa AAA 2,557,974
South Carolina State,
Capital Improvement,
GO, Series A:
6,135,000 3.500% 07/01/06....... Aaa AAA 5,648,739
2,000,000 4.250% 03/01/09....... Aaa AAA 1,883,920
4,000,000 South Carolina State,
Educational
Facilities for
Nonprofit
Institutions,
(Furman University
Project), Series A,
5.500% 10/01/26..... Aaa AAA 4,009,800
South Carolina State,
Jobs Economic
Development
Authority Hospital
Facilities Revenue:
6,500,000 5.450% 08/01/15....... Aaa AAA 6,511,765
1,500,000 (Oconee Memorial
Hospital),
6.150% 03/01/15..... NR AAA 1,584,405
South Carolina State,
Housing Finance and
Development
Authority:
1,235,000 Homeownership Mortgage
Purchase, Series A,
5.550% 07/01/15..... Aa AA 1,249,474
Multi-family Housing
Revenue:
2,655,000 Rental Housing
Revenue, (Windsor
Shores Project),
Series B, (FHA
Insured),
5.600% 07/01/16..... NR AA 2,645,601
4,595,000 Series A, (FNMA
Insured),
6.800% 11/15/11..... Aaa NR 4,880,028
5,000,000 (United Dominion
Project),
6.500% 05/01/24..... NR BBB+ 5,258,850
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
South Carolina State,
Public Service
Authority, Revenue
Bonds:
$1,000,000 Series A,
5.200% 07/01/03..... Aa A+ $ 1,038,660
Series A, Refunded:
1,500,000 5.300% 07/01/05....... Aa2 A+ 1,566,840
3,000,000 6.200% 07/01/05....... Aa2 A+ 3,249,570
1,000,000 6.375% 07/01/11....... Aa2 A+ 1,075,010
1,000,000 Series B,
6.700% 07/01/02..... Aaa A+ 1,097,490
1,000,000 Series B, Refunded,
6.600% 07/01/01..... Aaa A+ 1,082,440
2,000,000 Series C, Refunded,
5.100% 01/01/11..... Aaa AAA 1,997,540
3,000,000 South Carolina State
Refunding Capital
Improvement, GO,
4.400% 04/01/04..... Aaa AA+ 3,006,720
1,750,000 South Carolina State
Revenue Bonds, GO,
Series W,
6.000% 05/01/01..... Aaa AA+ 1,857,975
1,000,000 South Carolina State,
University of South
Carolina, GO, Series
B,
6.000% 03/01/01..... Aaa NR 1,057,160
1,000,000 Spartanburg, South
Carolina, Health
Services District
Inc. Hospital
Revenue, Series B,
Refunding,
5.125% 04/15/17..... Aaa AAA 969,370
Spartanburg, South
Carolina, Waterworks
and Sewer System
Authority, Revenue
Refunding and
Improvement:
3,445,000 6.200% 06/01/09....... A1 AA- 3,671,957
720,000 6,250% 06/01/12....... A1 AA- 765,814
Spartanburg County,
South Carolina, GO:
1,025,000 5.800% 02/01/05....... Aa3 AA- 1,102,162
1,005,000 5.700% 02/01/06....... A1 A+ 1,073,471
1,000,000 5.700% 02/01/09....... Aa3 AA- 1,053,390
1,200,000 Walhalla, South
Carolina, Revenue
Refunding,
3.750% 02/01/00+.... Aa3 NR 1,200,000
1,000,000 West Colombia, South
Carolina, Water and
Sewer, Revenue
Refunding, (MBIA
Insured),
6.300% 10/01/07..... Aa3 AA- 1,093,010
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 66
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Western Carolina
Regional Sewer
Systems Authority,
(AMBAC Insured):
$1,000,000 5.600% 03/01/01....... AAA AAA $ 1,043,800
2,500,000 5.000% 03/01/02....... Aaa Aaa 2,569,675
1,000,000 5.800% 03/01/03....... Aaa AAA 1,064,710
1,000,000 5.900% 03/01/04....... Aaa AAA 1,064,960
1,000,000 5.500% 03/01/10....... Aaa AAA 1,032,510
1,000,000 6.750% 03/01/00....... AAA AAA 1,061,110
York County, South
Carolina, GO:
1,000,000 6.700% 06/01/99....... A A 1,043,440
2,320,000 4.750% 06/01/07....... Aaa AAA 2,334,755
1,000,000 York County, South
Carolina, Industrial
Development Revenue,
Exempt Facility,
(Hoechst Celanese
Corporation
Project), AMT,
5.700% 01/01/24..... A2 A+ 1,003,100
4,000,000 York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project),
Series B,
6.850% 04/01/01..... Baa1 BBB 4,244,040
3,000,000 York County, South
Carolina, PCR,
3.700% 09/15/14+.... Aa3 AA- 3,000,330
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $258,455,614).......... 273,482,802
============
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 0.1%
(Cost $141,000)
141,000 AIM Tax-Exempt Fund....... $ 141,000
============
TOTAL INVESTMENTS
(Cost $258,596,614*).................. 99.0% $273,623,802
OTHER ASSETS AND
LIABILITIES (NET)..................... 1.0 2,712,051
----- -----------
NET ASSETS.............................. 100.0% $276,335,853
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1997.
++ Zero coupon security. The rate shown reflect the yield to maturity.
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
SCSDE South Carolina School District Enhancement
VA Veterans Administration
Nations South Carolina Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at September 30, 1997 (as a percentage
of net assets):
MBIA 15.4%
Nations South Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at September 30, 1997 (as a percentage
of net assets):
Pollution Control Revenue/Industrial Development Revenue 10.6%
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 67
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.3%
SOUTH CAROLINA -- 86.6%
$ 750,000 Berkeley County, South
Carolina, PCR, (South
Carolina Electric and
Gas Company),
6.500% 10/01/14...... A2 A1+ $ 814,905
525,000 Camden, South Carolina,
Combined Public
Utilities Revenue,
Refunding and
Improvement, (MBIA
Insured),
4.900% 03/01/06...... Aaa AAA 536,240
500,000 Charleston, South
Carolina, GO,
6.500% 06/01/11...... Aa AA 546,920
500,000 Charleston County,
South Carolina,
Hospital Facilities
Revenue, (Bon Secours
Health Systems
Project), (FSA
Insured),
5.625% 08/15/25...... Aaa AAA 502,645
1,000,000 Chester County, South
Carolina, Industrial
Development
Authority, Revenue
Refunding, (Springs
Industries Inc.
Project),
7.350% 02/01/14...... NR BBB+ 1,084,110
500,000 Clemson University,
South Carolina,
Stadium Refunding
Bonds, Student and
Faculty Housing,
Series M, (MBIA
Insured),
6.600% 06/01/08...... Aaa AAA 535,810
1,000,000 Columbia, South
Carolina, Waterworks
and Sewer System
Revenue,
5.500% 02/01/09...... Aa AA 1,064,180
Darlington County,
South Carolina,
Industrial
Development Revenue:
750,000 (Nucor Corporation
Project), Series A,
5.750% 08/01/23...... A1 AA- 756,285
500,000 (Sonoco Products
Company Project),
6.125% 06/01/25...... A2 A+ 522,575
500,000 Darlington County,
South Carolina, PCR,
(Carolina Power and
Light Company
Project),
6.600% 11/01/10...... A2 A/A-1 548,985
<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 $ 509,695
500,000 (Student Aid
Withholding),
5.125% 02/01/13...... Aaa AAA 499,125
500,000 Georgetown County,
South Carolina, PCR,
(International Paper
Company Project),
6.250% 06/15/05...... A3 A- 537,085
300,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series C,
5.500% 05/01/11...... NR AA- 305,943
710,000 Greer, South Carolina,
Combined Utility
Systems Revenue,
(AMBAC Insured),
5.000% 09/01/17...... Aaa AAA 683,957
500,000 Lexington, South
Carolina, Water and
Sewer Revenue,
5.500% 04/01/29...... NR AA 491,910
1,000,000 Piedmont Municipal
Power Agency, South
Carolina, Electric
Revenue Bonds, Series
B, (MBIA Insured),
5.250% 01/01/09...... Aaa AAA 1,023,830
1,000,000 Richland County, South
Carolina, School
District No. 1, GO,
(State Aid
Withholding),
4.625% 03/01/22...... Aa AA- 914,500
525,000 Richland County, South
Carolina, Sewer
System Revenue, GO,
Series A,
5.500% 03/01/17...... Aa AA 532,403
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- 540,905
750,000 South Carolina State,
Capital Improvement,
4.400% 04/01/04...... Aaa AA+ 751,680
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 68
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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 South Carolina, State
Educational
Facilities Authority,
(Furman University
Project), Series A,
(MBIA Insured),
5.500% 10/01/26...... Aaa AAA $ 1,002,450
500,000 South Carolina State,
Jobs-Economic
Development
Authority, Hospital
Facilities Revenue,
First Mortgage,
(Lowman Home-Trinity
Lutheran Home
Project),
6.700% 09/01/20...... NR NR 509,450
500,000 York County, South
Carolina, GO, (AMBAC
Insured),
4.750% 06/01/07...... Aaa AAA 503,180
900,000 York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project), Series
B,
6.850% 04/01/01...... Baa1 BBB 954,909
-----------
16,673,677
-----------
COLORADO -- 1.6%
1,000,000 E-470 Public Highway
Authority, Colorado,
Revenue Capital
Appreciation, Series
B, (MBIA Insured),
5.470% 09/01/18+..... Aaa AAA 321,410
-----------
OHIO -- 2.7%
500,000 Dayton, Ohio, Special
Facilities Revenue
Refunding, (Emery Air
Freight Corporation
Project), Series F,
6.050% 10/01/09...... NR BBB- 528,070
-----------
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 5.4%
$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 $ 1,037,700
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $17,756,868).... 18,560,857
===========
SHARES
---------
MONEY MARKET FUND -- 2.4%
(Cost $451,000)
451,000 AIM Tax-Exempt Fund..... 451,000
===========
TOTAL INVESTMENTS
(Cost $18,207,868*)................ 98.7% 19,011,857
OTHER ASSETS AND
LIABILITIES (NET).................. 1.3 240,753
----- -----------
NET ASSETS........................... 100.0% $19,252,610
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
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 South Carolina Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 1997 (as a percentage of net
assets):
MBIA 18.0%
Nations South Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 1997 (as a percentage of net
assets):
Pollution Control Revenue/Industrial Development Revenue 33.1%
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 69
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.1%
TENNESSEE -- 93.7%
Anderson County,
Tennessee, Health and
Educational
Facilities Board,
(Methodist Medical
Center):
$ 585,000 5.000% 07/01/01........ A1 NR $ 595,056
1,000,000 5.400% 07/01/04........ A1 NR 1,029,770
Chattanooga-Hamilton
County, Tennessee,
Hospital Authority
Revenue, GO,
(Erlanger Medical
Center), (FSA
Insured):
500,000 5.000% 10/01/00........ Aaa AAA 512,310
1,700,000 5.375% 10/01/04........ Aaa AAA 1,791,630
1,000,000 5.500% 10/01/07........ Aaa AAA 1,066,550
Hamilton County,
Tennessee, GO:
1,750,000 5.000% 07/01/01........ Aa NR 1,799,858
500,000 6.400% 09/01/04........ Aa NR 539,770
1,145,000 Harpeth VY Utilities
Revenue Refunding,
5.000% 09/01/01...... A1 A 1,176,911
1,600,000 Knox County, Tennessee,
Health, Educational
and Housing
Facilities Board,
Hospital Facilities
Revenue, Refunding
and Improvement,
(Baptist Health
System of East
Tennessee, Inc.
Project), (CONNIE LEE
Insured),
5.500% 04/15/11...... NR AAA 1,622,432
500,000 Knoxville, Tennessee,
Refunding and
Improvement, GO,
Series A, (MBIA
Insured),
5.250% 05/01/03...... Aaa AAA 522,590
500,000 Madison County,
Tennessee, GO, Series
A,
5.850% 08/01/03...... A1 NR 534,130
1,500,000 Maury County,
Tennessee, Industrial
Development Board,
PCR, Multi-Modal
Refunding, (Saturn
Corporation Project),
General Motors
Guaranty Agreement,
6.500% 09/01/24...... A3 A- 1,632,600
McMinn County,
Tennessee, Industrial
Development Board,
PCR, Refunding:
1,800,000 (Bowater Inc. Project),
6.850% 04/01/01...... Baa1 BBB 1,935,971
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$1,000,000 (Recycling Facility-
Calhoun Newsprint):
7.400% 12/01/22...... Baa1 BBB $ 1,113,120
Memphis, Tennessee,
Electric System
Revenue:
1,000,000 Pre-refunded,
6.000% 01/01/05........ NR NR 1,091,220
500,000 Refunding,
5.000% 01/01/99........ Aa AA 506,630
Memphis, Tennessee, GO:
500,000 6.000% 07/01/03........ Aa AA 543,405
300,000 5.250% 03/01/12........ Aa AA 300,828
2,255,000 5.000% 07/01/17........ Aa AA 2,186,020
1,000,000 Memphis, Tennessee,
Shelby County,
Apartment, GO,
6.750% 09/01/12...... Aa AA 1,093,320
1,500,000 Memphis, Tennessee,
Water Revenue,
5.900% 01/01/04...... Aa AA 1,618,320
Metropolitan
Government,
Nashville and
Davidson County,
Tennessee, Health and
Educational
Facilities Board
Revenue, Refunding
and Improvement,
(Meharry Medical
College Project),
(AMBAC Insured):
505,000 6.000% 12/01/08...... Aaa AAA 561,504
295,000 6.000% 12/01/09........ Aaa AAA 328,763
200,000 6.000% 12/01/09........ Aaa AAA 220,538
750,000 Metropolitan
Government,
Nashville and
Davidson County,
Tennessee, Refunding,
GO,
5.250% 05/15/07...... Aa AA 791,108
1,000,000 Metropolitan
Government,
Nashville and
Davidson
County, Tennessee,
Health and
Educational
Facilities Board,
Revenue Refunding,
(FNMA Collateral),
(Multi-Family
Housing, Welch Bend
Apartments), Series
A,
5.500% 01/01/27+..... NR AAA 1,033,600
Metropolitan
Government,
Nashville and
Davidson County,
Tennessee, Water and
Sewer, Revenue
Refunding:
1,000,000 4.600% 01/01/01........ Aaa AAA 1,013,810
600,000 6.500% 01/01/10........ Aaa AAA 691,794
1,000,000 Rutherford County,
Tennessee, Capital
Outlay Notes, Series
A,
6.500% 05/01/06...... Aa AA- 1,138,040
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 70
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,345,000 Rutherford County,
Tennessee, Public
Improvements,
6.000% 04/01/06...... Aa AA- $ 1,488,242
Shelby County,
Tennessee, Revenue
Refunding, GO:
1,000,000 Series A,
5.000% 03/01/03...... Aa2 AA+ 1,031,530
1,000,000 Series B,
6.000% 03/01/08...... Aa2 AA+ 1,057,460
Shelby County,
Tennessee, Health,
Educational and
Housing Facilities
Board:
500,000 6.250% 08/01/09........ Aaa AAA 563,400
520,000 Series D, (MBIA
Insured),
5.300% 08/15/04...... Aaa AAA 548,174
500,000 Shelby County,
Tennessee, Public
Improvement, GO,
Series A,
5.625% 06/01/06...... Aa AA+ 538,120
1,000,000 Sumner County,
Tennessee, Solid
Waste Revenue,
5.125% 08/01/03...... Aaa AAA 1,036,380
Tennessee Housing
Development Agency,
Mortgage Finance,
AMT:
700,000 5.850% 07/01/17........ Aa2 AA 710,633
Series A:
1,000,000 5.100% 07/01/01........ A1 A+ 1,019,810
200,000 6.300% 01/01/08........ A1 A+ 207,460
300,000 Series B,
6.550% 07/01/19...... A1 A+ 313,983
Tennessee State, GO,
Series A:
1,000,000 7.000% 03/01/03........ Aaa.. AA+ 1,131,830
1,000,000 5.200% 03/01/05........ Aaa.. AA+ 1,050,140
305,000 7.000% 03/01/05........ Aaa.. AA+ 354,721
1,000,000 Tennessee State, Local
Development Revenue
Refunding, Series A,
5.050% 03/01/01...... A AA- 1,023,260
500,000 Tennessee State, School
Board Authority
Higher Education
Revenue, Series A,
6.000% 05/01/05...... A1 AA 536,000
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$ 500,000 Tennessee State,
Volunteer State
Student Funding
Corporation,
Educational Loan
Revenue, Series B,
4.850% 06/01/99...... Aa NR $ 503,235
1,000,000 Williamson County,
Tennessee, Revenue
Refunding, GO,
5.750% 03/01/03...... Aa NR 1,067,900
730,000 Williamson County,
Tennessee, Capital
Outlay Notes,
5.700% 05/01/02...... Aa NR 773,034
-----------
43,946,910
-----------
PUERTO RICO -- 4.4%
600,000 Puerto Rico Electric
Power Authority,
Power Revenue, Series
P,
6.750% 07/01/03...... Baa1.. BBB+ 653,406
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 616,944
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 797,505
-----------
2,067,855
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $44,165,499)............ 46,014,765
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 71
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUNDS -- 0.9%
(Cost $431,000)
431,000 AIM Tax-Exempt Fund......... $ 431,000
===========
TOTAL INVESTMENTS
(Cost $44,596,499*).................... 99.0% 46,445,765
OTHER ASSETS AND
LIABILITIES (NET)...................... 1.0 456,571
----- -----------
NET ASSETS............................... 100.0% $46,902,336
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1997.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CONNIE LEE College Construction Loan Association
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 Tennessee Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 1997 (as a percentage of net
assets):
Pollution Control Revenue/Industrial Development Revenue 12.4%
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 72
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 92.8%
TENNESSEE -- 84.1%
$ 250,000 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority
Revenue, GO,
(Erlanger Medical
Center), (FSA
Insured),
5.500% 10/01/07...... Aaa AAA $ 266,637
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- 549,005
Knox County, Tennessee,
Health, Educational
and Housing
Facilities Board,
Hospital Facilities
Revenue, Refunding
and Improvement:
400,000 (Baptist Health System
of East Tennessee,
Inc. Project),
(CONNIE LEE Insured),
5.500% 04/15/11...... NR AAA 405,608
300,000 (Fort Sanders Alliance
Project), (MBIA
Insured),
7.250% 01/01/09...... Aaa AAA 363,591
250,000 Knoxville, Tennessee,
Water Authority
Revenue, Refunding
and Improvement,
5.100% 04/01/10...... Aa AA- 250,237
200,000 Loudon County,
Tennessee, Industrial
Development Board,
Solid Waste Disposal
Revenue, (Kimberly-
Clark Corporation
Project), AMT,
6.200% 02/01/23...... Aa2 AA 210,682
270,000 Maury County,
Tennessee, Industrial
Development Board,
PCR, Multi-Modal
Refunding, (Saturn
Corporation Project),
General Motors
Guaranty Agreement,
6.500% 09/01/24...... A3 A- 293,867
<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 McMinn County,
Tennessee, Industrial
Development Board,
Solid Waste
Recycling Facility
Revenue, (Calhoun
Newsprint Project),
AMT,
7.400% 12/01/22...... Baa1 BBB $ 278,280
300,000 Memphis, Tennessee,
Electric System
Revenue Refunding,
4.900% 01/01/11...... Aa AA 292,218
500,000 Memphis, Tennessee, GO,
5.000% 07/01/17...... Aa2 AA 484,705
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 273,330
100,000 6.200% 07/01/14........ Baa2 BBB 103,467
350,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Electric
Revenue, Series A,
5.625% 05/15/14...... Aa AA 366,958
Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Health and
Educational
Facilities Board
Revenue, Refunding
and Improvement,
(Meharry Medical
College Project),
(AMBAC Insured):
300,000 6.000% 12/01/09........ Aaa AAA 334,335
250,000 7.000% 12/01/11........ Aaa AAA 292,763
300,000 6.000% 12/01/16........ Aaa AAA 330,807
250,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Refunding,
GO,
5.250% 05/15/07...... Aa AA 263,703
Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Water and
Sewer Revenue, (FGIC
Insured):
300,000 6.500% 01/01/10........ Aaa AAA 345,896
300,000 5.200% 01/01/13........ Aaa AAA 306,585
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 73
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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 Rutherford County,
Tennessee, Capital
Outlay Notes, GO,
Series A,
6.500% 05/01/06...... Aa AA- $ 284,510
300,000 Rutherford County,
Tennessee, Public
Improvement, GO,
6.000% 04/01/06...... Aa AA- 331,950
240,000 Shelby County,
Tennessee, School
Bonds, GO, Series A,
5.900% 03/01/15...... Aa AA+ 248,650
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- 276,220
300,000 Tennessee Housing
Development Agency,
AMT, (Homeowner
PG-3),
5.850% 07/01/17...... Aa2 AA 304,557
250,000 Tennessee State, GO,
Series A,
7.000% 03/01/05...... Aaa AA+ 290,755
250,000 Tennessee State, Local
Development Revenue,
Series A,
5.750% 03/01/11...... A AA- 260,393
----------
8,009,709
----------
PUERTO RICO -- 8.7%
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 533,335
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- (CONTINUED)
300,000 Puerto Rico Public
Building Authority,
Guaranteed Public
Education and
Health Facilities
Revenue Refunding,
Series M,
5.500% 07/01/21...... Baa1 A 297,225
----------
830,560
----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $8,304,080)............. 8,840,269
==========
<CAPTION>
SHARES
------
<C> <S> <C> <C> <C>
MONEY MARKET FUNDS -- 4.7%
(Cost $445,000)
445,000 AIM Tax-Exempt Fund.......... $ 445,000
==========
TOTAL INVESTMENTS
(Cost $8,749,080*)...................... 97.5% 9,285,269
OTHER ASSETS AND
LIABILITIES (NET)....................... 2.5 240,405
----- ----------
NET ASSETS................................ 100.0% $9,525,674
===== ==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CONNIE LEE College Construction Loan Association
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, 1997 (as a percentage of net assets):
AMBAC 10.3%
Nations Tennessee Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
Pollution Control Revenue/Industrial Development Revenue 18.4%
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE> 74
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.5%
TEXAS -- 80.8%
$ 500,000 Alief, Texas,
Independent School
District, GO,
(PSFG Insured),
5.000% 02/15/18.... Aaa AAA $ 481,415
1,450,000 Alliance Airport
Authority Inc.,
Texas, Special
Facilities Revenue,
(American Airlines
Inc. Project), AMT,
7.000% 12/01/11.... Baa2 BB+ 1,674,895
750,000 Amarillo, Texas,
Junior College
District, GO, (FGIC
Insured),
7.600% 02/15/06.... Aaa AAA 888,697
Arlington, Texas,
Independent School
District, GO:
1,750,000 6.750% 08/15/99...... Aa2 NR 1,836,328
1,000,000 6.750% 08/15/00...... Aa2 NR 1,070,560
940,000 ETM, (PSFG Insured),
5.800% 02/15/02.... Aaa NR 996,409
1,725,000 Pre-refunded, (PSFG
Insured),
6.100% 02/15/02.... Aaa NR 1,841,869
1,000,000 Series A,
6.375% 08/15/01.... Aaa NR 1,480,848
Unrefunded,
(PSFG Insured):
1,060,000 5.800% 02/15/02...... Aaa NR 1,123,611
3,275,000 6.100% 02/15/05...... Aaa NR 3,479,458
1,000,000 Arlington, Texas,
Waterworks and
Sewer Revenue,
Refunding and
Improvement
Revenue,
(FGIC Insured),
6.100% 06/01/02.... Aaa AAA 1,076,220
Austin, Texas, GO:
5,750,000 5.500% 09/01/04...... Aa2 AA 6,120,070
2,000,000 Public Improvement,
(AMBAC Insured),
5.900% 09/01/05.... Aaa AAA 2,121,340
965,000 Unrefunded, Series A,
8.875% 09/01/00.... Aa2 AA 1,089,755
Austin, Texas,
Utility System
Revenue,
(AMBAC Insured):
4,275,000 6.250% 11/15/03...... Aaa AAA 4,700,149
3,000,000 6.250% 11/15/05...... Aaa AAA 3,279,690
985,000 Bell County, Texas,
Health Facilities
Development,
Corporate Revenue
Refunding, (Central
Texas Pooled
Health), Series A,
4.750% 10/01/23.... NR AA- 992,476
<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),
6.050% 06/01/03.... Aaa NR $ 1,053,720
3,525,000 Clear Creek, Texas,
Independent School
District, GO,
(PSFG Insured),
5.375% 02/01/06.... Aaa AAA 3,685,493
5,000,000 Dallas-Fort Worth,
Texas, Regional
Airport Revenue,
(Dallas-Fort Worth
Airport Project),
Series A,
(MBIA Insured),
5.400% 11/01/03.... Aaa AAA 5,277,900
1,500,000 Dallas, Texas, Civic
Center Convention
Revenue, Sr. Lien,
(AMBAC Insured),
6.375% 01/01/02.... Aaa AAA 1,594,830
Dallas, Texas, GO:
7,000,000 5.500% 02/15/00...... Aaa AAA 7,230,510
3,000,000 5.600% 02/15/01...... Aaa AAA 3,137,460
Dallas, Texas,
Independent School
District,
(PSFG Insured):
Pre-refunded:
1,500,000 5.600% 08/15/03...... Aaa AAA 1,678,698
1,575,000 5.700% 08/15/03...... Aaa AAA 1,659,368
Unrefunded:
4,425,000 5.600% 08/15/05...... Aaa AAA 4,671,251
4,450,000 5.700% 08/15/06...... Aaa AAA 4,706,275
500,000 Denton, Texas, Health
Facilities
Development,
Refunding,
(AMBAC Insured),
6.000% 05/01/05.... Aaa AAA 532,195
El Paso, Texas, GO,
(FGIC Insured):
500,000 5.100% 08/15/16...... Aaa AAA 490,470
1,395,000 Series C,
5.700% 08/15/03.... Aaa AAA 1,476,845
1,010,000 Fort Worth, Texas,
Independent School
District, GO,
7.250% 02/15/99.... Aa AA 1,054,187
3,500,000 Fort Worth, Texas,
Series A, GO,
5.300% 03/01/01.... Aa2 AA 3,625,825
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE> 75
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 3,000,000 Fort Worth, Texas,
Water and Sewer
Revenue,
Series B,
5.875% 02/15/00.... Aa2 AA $ 3,119,880
1,050,000 Garland, Texas,
Independent School
District, GO,
(PSFG Insured),
5.500% 02/15/00.... Aaa AAA 1,083,128
2,000,000 Garland, Texas,
Utility System
Revenue,
(AMBAC Insured),
5.900% 03/01/02.... Aaa AAA 2,126,640
1,000,000 Granbury, Texas,
Independent School
District, GO,
(PSFG Insured),
5.000% 08/01/09.... Aaa AAA 1,006,260
2,915,000 Grand Prairie, Texas,
Independent School
District, GO,
(PSFG Insured),
5.200% 02/15/24.... Aaa AAA 2,857,429
1,000,000 Harris County, Texas,
Certificates of
Obligation,
6.000% 10/01/02.... Aa2 AA 1,072,070
1,115,000 Harris County, Texas,
Flood Control
District, GO,
Series A,
5.800% 10/01/03.... Aa2 AA 1,187,497
Harris County, Texas,
GO:
1,000,000 5.750% 10/01/03...... Aa2 AA 1,064,650
3,000,000 6.250% 10/01/04...... Aa2 AA 3,198,270
Harris County, Texas,
Toll Road, Sr.
Lien,
(FGIC Insured):
7,185,000 5.000% 08/15/16...... Aaa AAA 6,921,095
3,380,000 5.375% 08/15/20...... Aaa AAA 3,307,938
Harris County, Texas,
Health Facilities
Development
Authority, Memorial
Hospital:
1,000,000 6.700% 06/01/00...... A2 A- 1,064,260
2,655,000 Series A,
6.000% 06/01/10.... Aaa AAA 2,928,040
1,000,000 Harris County, Texas,
Health Facilities
Development
Authority, School
Health Care System
Revenue, (Sisters
of Charity),
6.700% 07/01/03.... Aa3 AA 1,101,160
4,390,000 Houston, Texas, GO,
Series C,
6.000% 03/01/05.... Aa3 AA- 4,647,473
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 5,000,000 Houston, Texas,
Independent School
District,
Refunding, GO,
(PSFG Insured),
5.400% 08/15/07.... Aaa AAA $ 5,187,950
Houston, Texas,
Prerefunded, Public
Improvements,
Series A:
1,025,000 6.600% 04/01/01...... Aa3 AA- 1,103,843
1,305,000 6.600% 04/01/01...... Aa3 AA- 1,405,381
6,145,000 Houston, Texas, Water
and Sewer Systems
Revenue, Unrefunded
Balance, Prior
Lien, Series B,
5.900% 12/01/03.... A3 A 6,631,008
1,000,000 Hurst-Euless-Bedford
Independent School
District, Texas
Refunding, GO,
(PSFG Insured),
5.250% 08/15/24.... Aaa AAA 984,370
Lewisville, Texas,
Independent School
District,
Refunding, GO,
(PSFG Insured):
2,000,000 6.000% 08/15/00...... Aaa Aa3 2,102,520
2,000,000 6.100% 08/15/02...... Aaa Aa3 2,158,520
4,900,000 6.250% 08/15/05...... Aaa Aa3 5,273,527
Lower Colorado River
Authority, Texas,
Revenue Refunding:
12,000,000 Junior Lien Revenue,
(AMBAC Insured),
5.300% 01/01/06.... Aaa AAA 12,512,160
1,000,000 Series A,
(AMBAC Insured),
6.400% 01/01/01.... Aaa AAA 1,068,040
1,000,000 Lubbock, Texas,
Independent School
District, Series A,
(PSFG Insured),
6.300% 08/15/04.... NR NR 1,058,760
Mesquite, Texas,
Independent School
District 1,
Refunding, GO,
(PSFG Insured):
2,000,000 5.750% 08/15/03...... Aaa AAA 2,110,340
5,000,000 5.300% 08/15/06...... Aaa AAA 5,213,000
1,080,000 Midway, Texas,
Independent School
District, Capital
Appreciation,
Refunding, GO,
(PSFG Insured),
5.000% 08/01/06+... Aaa NR 707,173
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE> 76
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 5,000,000 North Central, Texas,
Health Facilities
Development
Corporation,
Hospital Revenue,
(Presbyterian
Healthcare),
Series B,
(MBIA Insured),
5.500% 06/01/16.... Aaa AAA $ 5,031,700
North East, Texas,
Independent School
District,
(PSFG Insured):
1,750,000 6.500% 02/01/07...... Aaa AAA 1,965,338
2,800,000 6.500% 02/01/07...... Aaa AAA 3,170,916
2,375,000 6.500% 02/01/07...... Aaa AAA 2,702,584
1,150,000 North Texas,
Municipal Water
District, Revenue
Refunding,
(MBIA Insured),
5.900% 09/01/99.... Aaa AAA 1,190,158
Plano, Texas,
Independent School
District, GO,
(PSFG Insured):
500,000 7.250% 02/15/04...... Aaa AAA 576,870
1,835,000 7.000% 02/15/05...... Aaa AAA 2,118,838
5,000,000 4.750% 02/15/07...... Aaa AAA 5,024,300
1,000,000 Plano, Texas,
Waterworks and
Sewer Systems
Revenue, Refunding
and Improvement,
(AMBAC Insured),
6.800% 05/01/99.... Aaa AAA 1,043,170
1,000,000 Port of Houston
Authority of Harris
County, Texas,
Revenue Bonds,
(MBIA Insured),
6.300% 05/01/04.... Aaa AAA 1,074,650
5,000,000 Round Rock, Texas,
Independent School
District, Capital
Appreciation,
Refunding, GO,
(MBIA Insured),
7.050% 08/15/11+... Aaa AAA 2,426,250
5,625,000 Sabine River
Authority, Texas,
Water Supply
Facilities Revenue,
Refunding,
(Lake Fork
Project),
6.500% 12/01/00.... NR AA 6,023,756
4,650,000 San Antonio, Texas,
GO,
5.500% 08/01/05.... Aa AA 4,851,810
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
San Antonio, Texas,
Water Revenue:
$ 115,000 Prerefunded, ETM,
(FGIC Insured),
5.900% 05/15/00.... NR AAA $ 120,067
2,385,000 Unrefunded Balance,
(FGIC Insured),
5.900% 05/15/00.... NR AAA 2,491,276
1,000,000 Tarrant County,
Texas, GO,
6.750% 07/15/07.... NR AA+ 1,068,330
3,000,000 Tarrant County,
Texas, Health
Facilities
Development
Corporation, Health
Systems Revenue,
Texas Health
Resources Systems,
Series A,
(MBIA Insured),
5.750% 02/15/08.... Aaa AAA 3,222,960
Tarrant County,
Texas, Water
Control and
Improvement
District No. 001,
Water Revenue,
Refunding and
Improvement:
2,200,000 5.700% 03/01/01...... A1 AA 2,303,290
5,000,000 5.900% 03/01/03...... AAA AA 5,270,050
Texas A&M University:
1,000,000 Permanent Funding,
Series C,
5.250% 07/01/02.... Aaa AA+ 1,043,870
1,000,000 Revenue Financing
System, Refunding,
5.950% 05/15/05.... Aa AA 1,094,010
Texas Municipal Power
Agency, Revenue
Refunding:
1,000,000 (FGIC Insured),
7.000% 09/01/99...... Aaa AAA 1,055,420
(MBIA Insured):
6,000,000 5.900% 09/01/04...... Aaa AAA 6,524,280
15,000,000 5.250% 09/01/05...... Aaa AAA 15,652,950
500,000 Texas State College,
Texas, Student Loan
Authority Revenue,
GO, AMT,
5.750% 08/01/11.... Aa AA 511,860
4,340,000 Texas State,
Department of
Housing and
Community Affairs,
Single Family
Revenue, AMT,
Series A, Class 1,
(MBIA Insured),
5.250% 09/01/13.... Aaa AAA 4,358,922
Texas State, GO:
Refunding,
Series A:
5,000,000 5.800% 10/01/04...... Aa2 AA 5,414,800
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE> 77
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 2,000,000 6.000% 10/01/08...... Aa2 AA $ 2,228,660
11,675,000 Series B,
5.000% 10/01/00.... Aa2 AA 11,979,017
Texas State, Public
Finance Authority,
Building Revenue,
(AMBAC Insured):
1,000,000 Series A,
6.000% 08/01/05.... Aaa AAA 1,097,370
5,000,000 Series B,
6.100% 02/01/04.... Aaa AAA 5,459,450
1,200,000 Series C,
6.000% 10/01/06.... Aa2 AA 1,327,356
Texas State, Turnpike
Authority, Dallas
North Tollway
Revenue:
1,000,000 (FGIC Insured),
6.750% 01/01/99.... Aaa AAA 1,026,800
President George Bush
Turnpike:
3,250,000 (AMBAC Insured),
5.450% 01/01/09+... Aaa AAA 1,842,003
1,000,000 (FGIC Insured),
5.250% 01/01/23.... Aaa AAA 9,780,200
735,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
Series B-4, AMT,
6.200% 12/01/14.... Aa2 AA 755,595
Texas State, Water
Development, GO:
1,850,000 5.500% 08/01/07...... Aa2 AA 1,980,425
5,000,000 5.250% 08/01/28...... Aa2 AA 4,939,400
1,000,000 Series D,
5.000% 08/01/19.... Aa2 AA 956,400
1,535,000 Texas Water Resource
Finance Authority,
Revenue,
7.400% 08/15/00.... A A 1,617,752
Travis County, Texas,
Limited Tax Revenue
Refunding,
Series A,
(MBIA Insured):
4,000,000 6.000% 03/01/00...... Aaa AAA 4,174,160
3,250,000 5.500% 03/01/03...... Aaa AAA 3,430,213
3,500,000 5.600% 03/01/04...... Aaa AAA 3,695,230
1,500,000 5.750% 03/01/06...... Aaa AAA 1,585,530
Trinity River
Authority, Texas:
2,750,000 Regional Wastewater
Systems Revenue,
7.000% 08/01/00.... Aaa AAA 2,962,025
3,885,000 Ten Mile Creek
Systems Revenue,
(AMBAC Insured),
5.700% 08/01/00.... Aaa AAA 4,111,262
<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 University of
Houston, Texas,
University Revenue
Refunding, Series
A, (MBIA Insured),
7.100% 02/15/99.... Aaa AAA $ 1,041,800
------------
313,654,272
------------
ALASKA -- 0.8%
4,725,000 North Slope Boro,
Alaska, Capital
Appreciation,
Series A, GO, (MBIA
Insured),
5.750% 06/30/06+... Aaa AAA 3,106,687
------------
ARIZONA -- 1.8%
3,250,000 Arizona Educational
Loan Marketing
Corporation,
Educational Loan
Revenue, Series A,
(Guaranteed Student
Loans),
6.550% 03/01/99.... A NR 3,353,805
2,100,000 Coconino County,
Arizona, Unified
School District No.
001, (Flagstaff
Project), GO,
(AMBAC Insured),
5.800% 07/01/02.... Aaa AAA 2,202,270
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 1,715,070
------------
7,271,145
------------
CONNECTICUT -- 1.3%
5,000,000 Connecticut State,
Series A, GO,
5.625% 03/15/09.... Aa3 AA- 5,252,750
------------
FLORIDA -- 0.3%
1,000,000 Florida State,
Housing Finance
Agency,
Multi-family
Housing Revenue,
(Andover Place
Project), Series E,
6.350% 05/01/26.... NR BBB+ 1,059,230
------------
GUAM -- 0.3%
1,000,000 Government of Guam,
Series A, GO,
5.200% 11/15/08.... NR BBB 999,100
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE> 78
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
HAWAII -- 0.7%
$ 2,500,000 Honolulu, Hawaii,
City and County,
Series D, GO,
6.400% 12/01/99.... Aaa AA $ 2,622,575
-----------
ILLINOIS -- 0.9%
2,500,000 Illinois State, GO,
4.400% 12/01/03.... Aa3 AA 2,494,775
1,100,000 Rosemont, Illinois,
Series B, GO, (FGIC
Insured),
6.400% 12/01/03.... Aaa AAA 1,184,733
-----------
3,679,508
-----------
LOUISIANA -- 0.5%
2,000,000 Louisiana State,
Series A, GO, (FGIC
Insured),
6.000% 08/01/01.... Aaa AAA 2,123,280
-----------
MAINE -- 0.6%
1,000,000 Bucksport, Maine,
Solid Waste
Disposal
Revenue, (Champion
International
Corporation
Project),
6.250% 05/01/10.... Baa1 BBB 1,049,070
1,000,000 Maine Municipal Board
Bank, Series D,
7.100% 11/01/01.... Aa3 A+ 1,098,220
-----------
2,147,290
-----------
MICHIGAN -- 1.3%
4,600,000 Detroit, Michigan,
Series B, GO,
6.500% 04/01/02.... Baa2 BBB 4,946,012
-----------
MISSOURI -- 0.3%
1,135,000 University of
Missouri,
University Revenue,
(Systems Facilities
Project),
5.750% 11/01/07.... Aa2 AA+ 1,235,515
-----------
NEVADA -- 0.4%
1,500,000 Clark County, Nevada,
Improvement and
Refunding, GO,
(AMBAC-TCRS
Insured),
6.100% 10/01/02.... Aaa AAA 1,609,830
-----------
NEW JERSEY -- 1.4%
5,000,000 New Jersey State,
Series E, GO,
6.000% 07/15/09.... Aa1 AA+ 5,578,100
-----------
NEW MEXICO -- 0.3%
1,000,000 Santa Fe, New Mexico,
Gross Receipts Tax
Revenue, Series A,
(AMBAC Insured),
4.950% 06/01/03.... Aaa AAA 1,027,780
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- 1.0%
$ 3,600,000 New York City, New
York, Municipal
Assistance
Corporation,
Series J, (GO of Corp
Insured),
5.750% 07/01/03...... Aa2.. AA- $ 3,850,020
-----------
OHIO -- 0.3%
1,000,000 Ohio State Building
Authority,
Correctional
Facilities Revenue,
Series A,
7.150% 08/01/99.... Aaa NR 1,056,010
-----------
SOUTH CAROLINA -- 0.3%
1,000,000 Greenville Hospital
System, South
Carolina, Hospital
Facilities Revenue,
Series B, (Guaranty
Agreement Insured),
5.250% 05/01/06.... Aa3 AA- 1,032,740
-----------
SOUTH DAKOTA -- 0.5%
1,000,000 South Dakota State,
Health and
Education Facility
Authority Revenue,
(Rapid City
Regional Hospital
Project), (MBIA
Insured),
5.700% 09/01/04.... Aaa AAA 1,064,800
1,000,000 South Dakota State,
Housing Development
Authority Revenue,
Homeownership
Mortgage Revenue,
Series A,
5.000% 05/01/01.... Aa1 AAA 1,016,350
-----------
2,081,150
-----------
TENNESSEE -- 0.9%
3,135,000 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Hospital Revenue,
(Erlanger Medical
Center Project),
(FSA Insured),
5.500% 10/01/07.... Aaa AAA 3,343,634
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE> 79
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- 3.1%
$ 3,100,000 King County,
Washington, School
District No. 414,
(Lake Washington
Project), GO,
5.300% 12/01/05.... Aa AA $ 3,263,432
Washington State, GO:
3,695,000 Motor Vehicle Fuel
Tax, Series 1995D,
6.500% 09/01/01.... Aa1 AA+ 3,999,025
2,000,000 Series B,
6.300% 06/01/02.... Aa1 AA+ 2,139,900
2,425,000 Series 1995C,
5.450% 07/01/07.... Aa1 AA+ 2,551,488
------------
11,953,845
------------
WISCONSIN -- 0.7%
2,500,000 Kenosha, Wisconsin,
Unified School
District No. 001,
Promissory Notes,
6.300% 04/01/01.... NR NR 2,531,050
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $364,033,804)......... 382,161,523
============
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 1.6%
(Cost $5,998,000)
5,998,000 AIM Tax-Exempt Fund....... $ 5,998,000
============
TOTAL INVESTMENTS
(Cost $370,031,804)................... 100.1% 388,159,523
OTHER ASSETS AND
LIABILITIES (NET)..................... (0.1) (270,504)
----- ------------
NET ASSETS.............................. 100.0% $387,889,019
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
ETM Escrowed to Maturity
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, 1997 (as a percentage of net assets):
PSFG 17.9%
MBIA 17.7%
AMBAC 11.2%
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE> 80
NATIONS FUNDS
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 99.1%
TEXAS -- 83.0%
$ 500,000 Corpus Christi, Texas,
Utilities System
Revenue, (MBIA
Insured),
5.200% 07/15/12...... Aaa AAA $ 501,515
500,000 Dallas County, Texas,
GO,
5.250% 08/15/14...... Aaa AAA 504,785
750,000 Dallas-Fort Worth,
Texas, Regional
Airport Revenue
Refunding, Series A,
(MBIA Insured),
6.000% 11/01/09...... Aaa AAA 805,350
500,000 Denison, Texas,
Hospital Authority
Revenue, (Texoma
Medical Center Inc.
Project),
5.450% 08/15/02...... NR BBB+ 513,730
500,000 El Paso, Texas, GO,
5.100% 08/15/16...... Aaa AAA 490,470
500,000 Galena Park, Texas,
Independent School
District, GO,
5.000% 08/15/21...... Aaa A1 475,240
500,000 Grand Prairie, Texas,
Independent School
District, Revenue
Refunding,
5.200% 02/15/24...... Aa A1 490,125
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 545,815
500,000 Harris County, Texas,
Health Facilities
Development
Authority, Hospital
Revenue, Revenue
Refunding, (Texas
Childrens Hospital
Project), (MBIA
Insured),
6.000% 06/01/10...... Aaa AAA 551,420
500,000 Hurst Euless Bedford,
Texas, Independent
School District,
Revenue Refunding
(PSFG Insured),
5.250% 08/15/24...... Aaa AAA 492,185
500,000 Laredo, Texas,
International Toll
Bridge Revenue
Refunding, (AMBAC
Insured),
5.200% 10/01/05...... Aaa AAA 522,960
<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 Lower Neches Valley,
Texas, Industrial
Development
Corporation, Revenue
Refunding, GO, (Mobil
Oil Refining
Project),
5.800% 05/01/22...... Aa2 AA $ 515,370
1,000,000 Red River Authority,
Texas, PCR, (Hoechst
Celanese Corporation
Project), AMT,
6.875% 04/01/17...... A2 A+ 1,084,790
585,000 Sherman, Texas,
Independent School
District, GO, (PSFG
Insured),
6.500% 02/15/20...... Aaa AAA 658,482
Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
System Revenue,
(Harris Methodist
Health System):
300,000 5.750% 02/15/08........ A NR 322,297
1,000,000 6.000% 09/01/10........ A NR 1,075,890
500,000 Texas State College,
Texas, Student Loan
Authority Revenue,
GO, AMT,
5.750% 08/01/11...... Aa AA 511,860
375,000 Texas State, Revenue
Refunding, Veterans
Housing Assistance,
GO, Series C,
6.400% 12/01/09...... Aa AA 394,875
600,000 Texas State, Water
Development Board
Revenue, State
Revolving Fund,
Senior Lien,
6.400% 07/15/08...... Aa1 AAA 653,400
1,000,000 Trinity River
Authority, Texas,
PCR, (Texas
Instruments Inc.
Project),
6.200% 03/01/20...... NR A 1,042,810
500,000 University of Texas,
University Revenue
Financing, Series A,
5.200% 08/15/17...... Aa1 AA+ 494,595
1,000,000 Waller, Texas,
Consolidated
Independent School
District, GO, (PSFG
Insured),
5.250% 02/15/21...... Aaa NR 982,760
-----------
13,630,724
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE> 81
NATIONS FUNDS
Nations Texas Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
COLORADO -- 6.3%
$1,500,000 Arapahoe County,
Colorado, Capital
Improvements Highway
Revenue, Capital
Appreciation, Series
E
6.500% 08/31/05...... Baa NR $ 1,035,195
-----------
OHIO -- 6.7%
1,000,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project),
Prerefunded,
6.125% 12/01/04...... NR BBB+ 1,104,020
-----------
PUERTO RICO -- 3.1%
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- 513,375
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $15,186,075)............ 16,283,314
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MONEY MARKET FUND -- 2.1%
(Cost $351,000)
351,000 AIM Tax-Exempt Fund......... $ 351,000
===========
TOTAL INVESTMENTS
(Cost $15,537,075*).................... 101.2% 16,634,314
OTHER ASSETS AND
LIABILITIES (NET)...................... (1.2) (198,158)
----- -----------
NET ASSETS............................... 100.0% $16,436,156
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
GO General Obligation
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
PSFG Permanent School Funding Guaranty
Nations Texas Municipal Bond Fund had the following insurance concentrations
greater than 10% at September 30, 1997 (as a percentage of net assets):
MBIA 14.6%
PSFG 13.0%
Nations Texas Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
Pollution Control Revenue/Industrial Development Revenue 15.9%
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE> 82
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.9%
VIRGINIA -- 96.0%
$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 $ 2,038,020
Arlington County,
Virginia, GO:
2,345,000 5.400% 08/01/02....... Aaa AAA 2,467,901
3,000,000 5.000% 07/15/03....... Aaa AAA 3,115,800
2,900,000 5.900% 12/01/03....... Aaa AAA 3,130,695
1,000,000 Series A,
Pre-refunded,
6.700% 06/01/99..... Aaa AAA 1,063,340
1,000,000 Arlington County,
Virginia, Industrial
Development
Authority, Hospital
Facilities Revenue,
Pre-refunded,
6.650% 09/01/01..... Aaa NR 1,105,020
1,000,000 Arlington County,
Virginia, Industrial
Development
Authority,
Facilities Revenue,
(The Natures
Conservancy), Series
A,
5.450% 07/01/27..... Aa1 NR 1,004,220
3,455,000 Augusta County,
Virginia, Industrial
Development
Authority,
Pre-refunded,
7.000% 09/01/01..... A NR 3,850,494
2,000,000 Brunswick County,
Virginia, Industrial
Development
Authority,
Correctional
Facility Lease,
(MBIA Insured),
5.250% 07/01/04..... Aaa AAA 2,092,300
1,000,000 Charlottesville-Albemarle,
Virginia, Airport
Authority Revenue
Refunding, AMT,
6.125% 12/01/09..... NR BBB 1,037,940
1,000,000 Chesapeake, Virginia,
GO,
5.700% 08/01/01..... Aa AA 1,054,380
1,525,000 Chesapeake, Virginia,
Public Improvement,
GO, (State Aid
Withholding
Insured),
5.000% 05/01/03..... Aa AA 1,576,682
6,195,000 Chesapeake, Virginia,
Revenue Refunding,
GO,
5.125% 12/01/05..... Aa AA 6,469,748
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$2,000,000 Chesapeake, Virginia,
Water and Sewer, GO,
Series A,
7.000% 12/01/09..... Aa AA $ 2,328,840
Chesterfield County,
Virginia, GO:
1,095,000 7.100% 03/01/00....... Aaa AA+ 1,160,634
1,000,000 Series A,
6.500% 01/15/01..... Aaa AA+ 1,066,950
1,000,000 Series B,
6.500% 01/01/02..... Aaa AA+ 1,082,180
2,120,000 Pre-refunded,
6.700% 01/01/11..... NR AA+ 2,319,153
2,000,000 Chesterfield County,
Virginia, Public
Improvement, GO,
5.900% 07/15/02..... Aaa AA+ 2,146,940
Chesterfield County,
Virginia, Water and
Sewer Authority,
Revenue Bond:
1,000,000 6.200% 11/01/05....... Aa AA 1,092,900
Series A:
2,000,000 5.500% 11/01/00....... Aa AA 2,082,080
2,020,000 5.625% 11/01/01....... Aa AA 2,129,302
1,320,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco
Corporation
Project),
5.900% 03/01/05..... A1 A 1,438,021
2,500,000 Fairfax County,
Virginia, Water
Authority, Revenue
Refunding,
5.000% 04/01/21..... Aa AA 2,412,900
2,000,000 Fairfax County,
Virginia, Public
Improvement, GO,
Series A
6.000% 06/01/04..... Aaa AAA 2,186,700
1,000,000 Fairfax County,
Virginia, Industrial
Development
Authority, Revenue
Refunding, (Inova
Health Systems
Hospital Project),
6.100% 08/15/99..... Aa AA 1,038,710
1,000,000 Fairfax County,
Virginia, Public
Improvement, GO,
Series A,
4.900% 06/01/04..... Aaa AAA 1,030,320
3,135,000 Fairfax County,
Virginia, Water and
Sewer Authority
Revenue, (AMBAC
Insured),
5.100% 11/15/04..... Aaa AAA 3,258,111
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE> 83
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$1,330,000 Halifax County,
Virginia, Industrial
Development
Authority, Exempt
Facilities Revenue,
(Old Dominion
Electric Co-op
Project), AMT,
5.900% 12/01/02..... NR A+ $ 1,398,655
Hampton, Virginia,
Public Improvement,
GO:
1,000,000 6.500% 01/01/00....... Aa AA- 1,052,390
2,190,000 Series C,
4.750% 08/01/05..... Aa AA- 2,227,142
Hampton Roads
Sanitation District,
Virginia, Sewer
Revenue Refunding:
2,500,000 4.500% 10/01/02....... Aa AA 2,525,650
1,000,000 Pre-refunded,
7.100% 07/01/99..... Aaa AAA 1,071,780
5,000,000 Hanover County,
Virginia, Industrial
Development
Authority Revenue,
(Memorial Regional
Medical Center
Project), (MBIA
Insured),
5.500% 08/15/25..... Aaa AAA 4,936,450
Henrico County,
Virginia, Industrial
Development
Authority Revenue:
2,105,000 Public Facilities
Lease Revenue,
7.500% 08/01/02..... Aa AA 2,384,839
3,500,000 Solid Waste,
(Browning-Ferris
Industries Inc.
Project),
5.300% 12/01/11..... A2 A 3,601,605
1,500,000 Henrico County,
Virginia, Water and
Sewer Authority
Revenue,
Pre-refunded,
6.200% 05/01/02..... A1 AAA 1,551,960
1,110,000 Henry County,
Virginia, Public
Service Authority,
Water and Sewer
Authority Revenue,
(FGIC Insured),
5.500% 11/15/99..... Aaa AAA 1,144,910
1,915,000 James City County,
Virginia, GO, (FGIC
Insured),
5.000% 12/15/08..... Aaa AAA 1,964,158
1,000,000 Leesburg, Virginia,
Revenue Refunding,
5.500% 08/01/06..... A1 A 1,059,260
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Loudoun County,
Virginia, Industrial
Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center),
(FSA Insured):
$1,500,000 5.500% 06/01/08....... Aaa AAA $ 1,573,260
1,000,000 5.600% 06/01/09....... Aaa AAA 1,048,460
Loudoun County,
Virginia, Sanitation
Authority:
2,000,000 Refunding and
Improvement
Authority,
5.000% 10/01/02..... Aa AA- 2,065,140
1,000,000 Water and Sewer
Authority Revenue,
(FGIC Insured),
5.800% 01/01/01..... Aaa AAA 1,049,650
1,500,000 Louisa, Virginia,
Industrial
Development
Authority, Solid
Waste and Sewer
Disposal Revenue,
(Virginia Electric
and Power Company),
Series A,
5.150% 04/01/02..... A3 A- 1,538,085
1,140,000 Lynchburg, Virginia,
Public Improvement,
GO,
5.400% 05/01/17..... Aa3 AA 1,150,009
5,000,000 Newport News,
Virginia, Public
Improvement, Series
B,
5.200% 11/01/04..... Aa AA- 5,234,850
Newport News,
Virginia, Water and
Sewer Authority
Revenue:
Series A:
1,020,000 5.500% 06/01/01....... Aa AA- 1,065,655
1,095,000 5.600% 06/01/02....... Aa AA- 1,155,992
1,000,000 Series B,
5.100% 11/01/03..... Aa AA- 1,040,770
Norfolk, Virginia,
Capital Improvement,
GO:
1,000,000 5.375% 06/01/05....... Aaa AAA 1,058,150
1,000,000 Series A,
5.900% 02/01/06..... Aa AA 1,058,810
2,250,000 Norfolk, Virginia,
Redevelopment and
Housing Authority,
Educational Facility
Revenue, (Tidewater
Community College
Campus),
5.875% 11/01/15..... Aa AA 2,305,778
2,000,000 Norfolk, Virginia,
Water Revenue, (MBIA
Insured),
5.700% 11/01/10..... Aaa AAA 2,122,780
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE> 84
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Portsmouth, Virginia,
Public Improvement,
GO, Pre-refunded:
$1,750,000 6.700% 08/01/03....... NR AA- $ 1,901,725
1,735,000 6.800% 08/01/06....... NR AA- 1,890,022
1,000,000 6.800% 08/01/09....... NR AA- 1,089,350
Portsmouth, Virginia,
Refunding, GO:
1,000,000 5.000% 08/01/02....... A AA- 1,029,770
1,000,000 5.250% 08/01/04....... A AA- 1,045,450
1,465,000 Prince William County,
Virginia, GO, Series
A,
6.200% 12/01/10..... Aa AA 1,549,736
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 1,964,499
1,300,000 (Prince William
Hospital Project),
5.625% 04/01/12..... A NR 1,309,880
1,000,000 Prince William County,
Virginia, Park
Authority Revenue,
6.300% 10/15/07..... NR A- 1,105,430
3,000,000 Prince William County,
Virginia, Service
Authority, Water and
Sewer Systems,
Revenue Refunding,
5.000% 07/01/21..... Aaa AAA 2,844,060
1,000,000 Richmond, Virginia,
Metropolitan
Expressway
Authority, Revenue
Refunding, Series A,
(FGIC Insured),
5.650% 07/15/00..... Aaa AAA 1,040,960
Richmond, Virginia,
Public Improvement,
GO:
Series A:
2,300,000 6.500% 01/15/02....... A1 AA 2,495,247
1,000,000 6.700% 08/01/03....... 1,095,290
1,000,000 Series B,
5.000% 01/15/21..... 949,800
1,000,000 Pre-refunded,
6.200% 01/15/03..... A1 AA 1,080,060
Roanoke, Virginia,
Public Improvement,
GO, Series B:
1,000,000 5.800% 08/01/00....... Aa AA 1,045,560
3,295,000 6.000% 08/01/03....... Aa AA 3,501,333
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 600,000 Roanoke, Virginia,
Redevelopment and
Housing Authority,
Multi-family Housing
Revenue Refunding,
United Dominion-
Laurel Ridge,
6.625% 05/01/23..... NR BBB+ $ 629,040
5,000,000 Southeastern Public
Service Authority,
Virginia, Series A,
(MBIA Insured),
5.100% 07/01/08..... Aaa AAA 5,179,750
Spotsylvania County,
Virginia, Public
Improvement, GO:
1,580,000 5.200% 07/15/01....... A1 A+ 1,634,747
2,320,000 5.875% 07/15/09....... A1 A+ 2,465,487
2,535,000 Staunton, Virginia,
Industrial
Development
Authority,
Educational
Facilities Revenue,
(Mary Baldwin
College Project),
6.600% 11/01/14..... NR NR 2,589,553
Suffolk, Virginia,
Refunding and
Improvement, GO:
1,110,000 5.400% 08/01/04....... A1 A 1,169,496
1,500,000 5.750% 08/01/08....... A1 A 1,598,100
2,000,000 University of
Virginia, Hospital
Revenue Bond,
6.000% 06/01/13..... Aa AA 2,032,780
Upper Occoquan,
Virginia, Sewer
Authority, Regional
Sewer Revenue, (MBIA
Insured):
2,625,000 5.850% 07/01/99....... Aaa AAA 2,709,840
2,000,000 6.250% 07/01/05....... Aaa AAA 2,177,240
1,000,000 Virginia Beach,
Virginia,
Development
Authority
Facilities, Sentara
Bayside Hospital,
5.800% 11/01/99..... Aa AA 1,033,010
Virginia Beach,
Virginia, GO:
1,000,000 Pre-refunded,
6.950% 06/01/06..... NR NR 1,087,110
Refunding:
1,000,000 5.550% 02/01/01....... Aa AA 1,042,820
2,300,000 5.400% 07/15/08....... Aa AA 2,434,895
Series A:
1,000,000 6.900% 10/01/00....... Aa AA 1,071,950
1,000,000 6.850% 06/01/01....... Aa AA 1,083,020
2,350,000 Virginia Biotechnology
Research Park
Authority, Lease
Revenue, (Biotech
Two Project),
5.750% 09/01/05..... Aa AA 2,545,403
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE> 85
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
Virginia College
Building Authority,
Educational
Facilities Revenue,
University of
Richmond:
$2,000,000 5.625% 11/01/02....... NR AA- $ 2,093,880
2,000,000 (Equipment Leasing
Program),
5.000% 02/01/02..... Aa AA 2,057,920
Virginia Port
Authority,
Commonwealth Port
Fund Revenue, AMT:
1,340,000 5.750% 07/01/02....... Aa A+ 1,410,846
1,000,000 5.650% 07/01/17....... Aaa AAA 1,019,010
1,175,000 Virginia State, Higher
Educational
Institutions
Revenue, GO,
6.000% 06/01/01..... Aaa AAA 1,232,352
1,695,000 Virginia State,
Housing Development
Authority,
Commonwealth
Mortgage, Series D,
Sub-Series D-3,
6.100% 01/01/15..... Aa1 AA+ 1,770,800
2,000,000 Virginia State, Public
Building Authority,
Series A,
Correctional
Facilities,
5.800% 08/01/02..... Aa AA 2,121,180
Virginia State, Public
School Authority
Revenue:
4,275,000 5.750% 01/01/00....... Aa AA 4,431,551
Series A:
1,000,000 6.000% 01/01/01....... Aa AA 1,041,400
2,195,000 5.400% 01/01/08....... Aa AA 2,281,768
1,000,000 6.500% 08/01/08....... Aa AA 1,086,900
1,480,000 Series B,
5.100% 01/01/05..... Aa AA 1,532,481
3,500,000 Virginia State,
Refunding, GO,
Series B,
4.800% 06/01/07..... Aaa AAA 3,564,995
Virginia State,
Residential
Authority, Water &
Sewer System
Revenue:
1,000,000 (Hopewell Regional
Wastewater
Facility), Series A,
6.000% 10/01/15..... NR A 1,039,630
1,020,000 (Suffolk Project),
5.500% 04/01/17..... NR AA 1,039,166
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
Virginia State,
Transportation Board
Authority, Contract
Revenue:
$2,105,000 5.100% 05/15/05....... Aa AA $ 2,182,906
3,000,000 Project A,
4.900% 05/15/03..... Aa AA 3,079,890
3,150,000 Route 28,
6.000% 04/01/02..... Aa AA 3,368,421
5,390,000 Route 58, Series A,
5.500% 05/15/09..... Aa AA 5,610,774
2,470,000 Virginia State, Water
and Sewer Revenue
Authority, Revenue
Bond,
5.150% 10/01/07..... NR AA 2,558,426
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 1,042,370
1,000,000 6.000% 07/01/14....... A NR 1,029,640
1,500,000 Winchester, Virginia,
Industrial
Development
Authority Revenue,
(AMBAC Insured),
6.150% 01/01/99..... Aaa AAA 1,540,020
------------
212,725,208
------------
COLORADO -- 1.2%
8,000,000 Public Highway
Authority, Colorado
Revenue, Capital
Appreciation, Series
B,
5.469% 09/01/18+.... Aaa AAA 2,571,280
------------
DISTRICT OF COLUMBIA -- 1.0%
Washington, D.C.,
Metropolitan
Airports Authority,
Virginia General
Airport Revenue,
AMT:
1,000,000 Series A, (MBIA
Insured),
5.200% 10/01/02..... Aaa AAA 1,036,480
1,000,000 Series B, (FGIC
Insured),
5.75% 10/01/03...... Aaa AAA 1,067,280
------------
2,103,760
------------
ALASKA -- 0.5%
1,000,000 Alaska State, Student
Loan Corporation,
Student Loan
Revenue, Series A,
AMT, (AMBAC
Insured),
5.250% 07/01/03..... Aaa AAA 1,024,330
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE> 86
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OHIO -- 0.2%
$ 500,000 Dayton, Ohio, Special
Facilities Revenue
6.200% 10/01/09..... NR BBB $ 527,215
------------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $208,009,457). 218,951,793
============
SHARES
---------
MONEY MARKET FUND -- 0.1%
(Cost $253,000)
253,000 AIM Tax-Exempt Fund... 253,000
============
TOTAL INVESTMENTS
(Cost $208,262,457*)............. 99.0% 219,204,793
OTHER ASSETS AND
LIABILITIES (NET)................ 1.0 2,270,317
----- ------------
NET ASSETS......................... 100.0% $221,475,110
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Zero coupon security. The rate shown reflect the yield to maturity.
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Federal Guaranty Insurance Corporation
FSA Financial Security Assurance
GO General Obligation
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
NR Not Rated
PCR Pollution Control Revenue
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE> 87
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.6%
VIRGINIA -- 97.6%
$ 500,000 Alexandria Virginia,
Redevelopment &
Housing Authority,
Residential Care
Facilities, Revenue,
Multi-Mode, First
Mortgage-Goodwin-B,
3.300% 10/01/06+..... NR A $ 500,000
1,000,000 Augusta County,
Virginia, Industrial
Development
Authority, Hospital
Revenue Refunding,
(Augusta Hospital
Corporation), (AMBAC
Insured),
5.500% 09/01/15...... Aaa AAA 1,005,550
475,000 Chesapeake, Virginia,
Industrial
Development Authority
Revenue Refunding,
Port Facilities,
(Cargill Inc.
Project),
5.875% 03/01/13...... Aa3 AA- 495,259
500,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR,
(Westvaco Corporation
Project),
6.650% 09/01/18...... A1 A 552,605
500,000 Dayton, Ohio, Special
Facilities Revenue,
Air
Freight-D-Convertible,
6.200% 10/01/09...... NR BBB 527,215
500,000 Fairfax County,
Virginia, Industrial
Development Authority
Revenue Refunding,
(Inova Health Systems
Hospital Project),
5.500% 08/15/10...... Aa AA 521,600
1,000,000 Fairfax County,
Virginia, Sewer
Revenue Refunding,
(AMBAC Insured),
5.500% 11/15/13...... Aaa AAA 1,020,270
500,000 Fairfax County,
Virginia, Water
Authority, Revenue
Refunding,
5.000% 04/01/21...... Aa AA 482,580
2,420,000 Galena Park Texas,
Independent School
District, Capital
Appreciation, Revenue
Refunding, (PSFG
Insured), GO,
6.375% 08/15/24++.... Aaa NR 548,518
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 800,000 Giles County, Virginia,
Industrial
Development
Authority, Revenue
Exempt Facilities,
(Hoechst Celanese
Corporation Project),
AMT,
5.950% 12/01/25...... A2 A+ $ 820,480
400,000 Hampton, Virginia,
Museum, Revenue
Refunding,
5.250% 01/01/09...... NR A- 401,296
500,000 Hanover County,
Virginia, Industrial
Development
Authority, (Bon
Secours Health System
Projects), (MBIA
Insured),
5.500% 08/15/25...... Aaa AAA 493,645
500,000 Henrico County,
Virginia, Industrial
Development Authority
Revenue, Public
Facilities Lease
Revenue,
7.000% 08/01/13...... Aa AA 571,975
500,000 Henry County, Virginia,
GO,
5.750% 07/15/07...... A A 536,870
700,000 James City County,
Virginia, Public
Improvement, GO,
(FGIC Insured),
5.250% 12/15/14...... Aaa AAA 703,240
Loudoun County,
Virginia, Industrial
Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center),
(FSA Insured):
765,000 5.600% 06/01/09........ Aaa AAA 802,072
500,000 5.800% 06/01/20........ Aaa AAA 513,730
840,000 Norfolk Virginia,
Capital Improvement,
(FGIC Insured), GO,
5.375% 06/01/05...... Aaa AAA 888,846
500,000 Peninsula Ports
Authority, Virginia,
Health Care
Facilities, Revenue
Refunding, (Riverside
Health Systems
Project), Series A,
6.625% 07/01/18...... Aa AA- 542,515
500,000 Pittsylvania County,
Virginia, Public
Improvement, GO,
5.850% 07/01/08...... A A 539,240
1,000,000 Prince William County,
Virginia, Industrial
Development
Authority, Lease
Revenue, (ATCC
Project),
6.000% 02/01/14...... A NR 1,044,150
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 88
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (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)
$ 500,000 Prince William County,
Virginia, Park
Authority Revenue,
6.875% 10/15/16...... NR A- $ 548,965
500,000 Richmond, Virginia, GO,
Revenue Refunding,
Series B, (FGIC State
Aid Withholding),
5.000% 01/15/21...... Aaa AAA 474,900
800,000 Richmond, Virginia,
Metropolitan
Expressway Authority,
Revenue Refunding,
Series B, (FGIC
Insured),
6.250% 07/15/22...... Aaa AAA 859,663
1,390,000 Rivanna, Virginia,
Regional Water and
Sewer Authority,
Regional Water and
Sewer Systems Revenue
Refunding,
6.450% 10/01/12...... Aa A+ 1,491,401
1,000,000 Staunton, Virginia,
Industrial
Development
Authority,
Educational
Facilities Revenue,
(Mary Baldwin College
Project),
6.600% 11/01/14...... NR NR 1,021,520
500,000 Upper Occoquan,
Virginia, Sewer
Authority, Regional
Sewer Revenue, Series
A, (MBIA Insured),
5.000% 07/01/25...... Aaa AAA 472,735
500,000 Virginia Beach,
Virginia, Public
Improvement
Refunding, GO,
5.750% 11/01/08...... Aa AA 540,395
1,000,000 Virginia Commonwealth,
Virginia
Transportation
Program Revenue, Oak
Grove Connector,
Series A,
5.250% 05/15/22...... Aa2 AA 984,990
640,000 Virginia State, Public
School Authority
Revenue, Series A,
6.125% 08/01/11.... Aa AA 688,794
750,000 Virginia State,
Resource Authority,
Sewer Systems
Revenue, (Hopewell
Regional Wastewater
Facility), Series A,
AMT,
6.000% 10/01/15...... NR AA 779,723
<CAPTION>
PRINCIPAL RATING VALUE
AMOUNT MOODY'S S&P (NOTE 1)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 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 $ 534,175
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 844,472
-----------
22,753,389
-----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $21,665,902)............ 22,753,389
===========
SHARES
------
MONEY MARKET FUND -- 1.4%
(Cost $328,000)
328,000 AIM Tax-Exempt Fund............. 328,000
===========
TOTAL INVESTMENTS
(Cost $21,993,902*).................... 99.0% 23,081,389
OTHER ASSETS AND
LIABILITIES (NET)...................... 1.0 226,850
----- -----------
NET ASSETS............................... 100.0% $23,308,239
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1997.
++ Zero coupon security. The rate shown reflects the yield to maturity.
ABBREVIATIONS:
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 Virginia Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 1997 (as a percentage of net assets):
FGIC 12.7
Nations Virginia Municipal Bond Fund had the following industry concentrations
greater than 10% at September 30, 1997 (as a percentage of net assets):
Water Revenue 14.2%
Pollution Control Revenue/Industrial Development 14.0%
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 89
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (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>
ASSETS:
Investments, at value (Note 1),
See accompanying schedules............... $116,915,373 $866,480,360 $469,582,433 $207,637,345
Cash....................................... 196 896 345 453
Interest receivable........................ 1,582,750 12,820,389 7,336,017 3,804,865
Dividends receivable....................... 18,224 53,896 14,862 4,318
Receivable for Fund shares sold............ 1,043,771 270,962 1,504,678 94,013
Receivable for investment securities
sold..................................... 6,910,092 -- -- --
Unamortized organization costs (Note 6).... 8,605 7,632 -- 1,153
Other assets............................... 589 25,167 13,700 --
------------ ------------ ------------ ------------
Total Assets............................. 126,479,600 879,659,302 478,452,035 211,542,147
------------ ------------ ------------ ------------
LIABILITIES:
Payable for Fund shares redeemed........... 936,116 99,348 282,701 108,299
Payable for investment securities
purchased................................ 8,496,812 11,912,660 -- --
Investment advisory fee payable (Note 2)... 14,717 219,846 150,878 52,553
Administration fee payable (Note 2)........ 7,344 56,572 31,144 13,747
Shareholder servicing and distribution fees
payable (Note 3)......................... 22,458 2,722 20,484 5,271
Transfer agent fees payable (Note 2)....... 4,328 20,872 3,270 4,161
Custodian fees payable (Note 2)............ 3,358 10,496 6,811 3,405
Dividends payable.......................... 361,346 3,257,893 1,835,921 805,310
Accrued Trustees' fees and expenses (Note
2)....................................... 4,854 7,705 7,787 3,711
Accrued expenses and other payables........ 13,554 89,787 95,716 33,031
------------ ------------ ------------ ------------
Total Liabilities........................ 9,864,887 15,677,901 2,434,712 1,029,488
------------ ------------ ------------ ------------
NET ASSETS................................. $116,614,713 $863,981,401 $476,017,323 $210,512,659
============ ============ ============ ============
Investments, at cost....................... $115,947,862 $827,901,310 $439,724,377 $197,298,218
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 90
NATIONS FUNDS
- ------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS
NATIONS NATIONS NORTH
NATIONS GEORGIA NATIONS MARYLAND NATIONS 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>
$45,897,969 $143,052,170 $16,248,132 $93,478,889 $17,988,380 $187,069,505
256 320 78 181 93 308
852,859 1,992,594 264,524 1,420,215 239,025 2,811,578
4,671 3,943 2,345 2,755 2,083 9,162
363,921 62,910 46,026 89,563 93,673 74,859
-- -- -- -- -- 3,178,634
583 -- 625 -- 908 480
-- -- -- 12,414 -- 42
----------- ------------ ----------- ----------- ----------- ------------
47,120,259 145,111,937 16,561,730 95,004,017 18,324,162 193,144,568
----------- ------------ ----------- ----------- ----------- ------------
179,462 4,445 140,263 121,811 89,911 11,755
-- -- -- -- -- 6,942,053
11,809 35,338 2,788 12,342 1,606 46,460
3,012 9,443 1,065 6,105 1,189 12,156
18,100 10,184 7,907 7,405 6,649 8,034
-- 1,308 1,292 -- -- 940
2,432 3,218 1,997 3,209 1,965 2,853
165,264 517,014 57,007 278,404 36,969 659,773
2,465 5,285 1,018 4,865 886 2,605
21,045 16,311 8,862 659 16,302 22,060
----------- ------------ ----------- ----------- ----------- ------------
403,589 602,546 222,199 434,800 155,477 7,708,689
----------- ------------ ----------- ----------- ----------- ------------
$46,716,670 $144,509,391 $16,339,531 $94,569,217 $18,168,685 $185,435,879
=========== ============ =========== =========== =========== ============
$43,475,096 $136,602,990 $15,643,074 $89,820,313 $17,196,064 $177,744,278
=========== ============ =========== =========== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 91
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1997
(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........................... $ 29,118,408 $ 273,623,802 $ 19,011,857
Cash................................................... 512 962 288
Interest receivable.................................... 417,689 3,852,311 304,706
Dividends receivable................................... 2,562 13,495 1,296
Receivable for Fund shares sold........................ 18,535 83,082 25,991
Receivable for investment securities sold.............. -- -- --
Unamortized organization costs (Note 6)................ 583 -- 692
Other assets........................................... -- 7,669 88
------------ ------------- ------------
Total Assets......................................... 29,558,289 277,581,321 19,344,918
------------ ------------- ------------
LIABILITIES:
Payable for Fund shares redeemed....................... 8 20,117 --
Payable for investment securities purchased............ -- -- --
Investment advisory fee payable (Note 2)............... 6,105 69,617 3,370
Administration fee payable (Note 2).................... 1,917 18,153 1,240
Shareholder servicing and distribution fees payable
(Note 3)............................................. 16,968 11,595 8,684
Transfer agent fees payable (Note 2)................... -- 4,107 74
Custodian fees payable (Note 2)........................ 2,116 3,891 1,985
Dividends payable...................................... 39,075 1,078,161 66,872
Accrued Trustees' fees and expenses (Note 2)........... 1,838 4,670 1,124
Accrued expenses and other payables.................... 18,582 35,157 8,959
------------ ------------- ------------
Total Liabilities.................................... 86,609 1,245,468 92,308
------------ ------------- ------------
NET ASSETS............................................. $ 29,471,680 $ 276,335,853 $ 19,252,610
============ ============= ============
Investments, at cost................................... $ 27,441,464 $ 258,596,614 $ 18,207,868
============ ============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 92
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1997
(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>
$46,445,765 $9,285,269 $388,159,523 $16,634,314 $219,204,793 $23,081,389
194 721 455 336 82 208
685,527 155,144 4,556,143 207,211 3,478,178 357,269
2,769 1,349 45,531 1,834 1,296 3,015
28,257 185,266 18,292 34,742 56,233 2,123
-- -- -- -- -- --
1,112 929 311 1,240 -- 583
844 -- -- -- -- --
----------- ---------- ------------ ----------- ------------ -----------
47,164,468 9,628,678 392,780,255 16,879,677 222,740,582 23,444,587
----------- ---------- ------------ ----------- ------------ -----------
54,288 70,936 2,195 33,999 422,026 51,829
-- -- 3,213,022 321,302 -- --
8,318 -- 102,990 2,388 44,532 4,557
3,060 616 25,468 1,082 14,679 1,525
4,690 3,934 2,506 7,574 21,558 10,437
-- 491 3,168 102 -- 2,729
2,005 1,859 3,519 2,019 6,303 2,041
170,631 15,398 1,501,794 59,040 683,722 50,077
1,210 553 2,142 1,054 14,492 1,296
17,930 9,217 34,432 14,961 58,160 11,857
----------- ---------- ----------- ----------- ------------ -----------
262,132 103,004 4,891,236 443,521 1,265,472 136,348
----------- ---------- ------------ ----------- ------------ -----------
$46,902,336 $9,525,674 $387,889,019 $16,436,156 $221,475,110 $23,308,239
=========== ========== ============ =========== ============ ===========
$44,596,499 $8,749,080 $370,031,804 $15,537,075 $208,262,457 $21,993,902
=========== ========== ============ =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 93
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30,
1997 (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........ $ 947 $ 60,630 $ 103,572 $ --
Accumulated net realized gain/(loss) on
investments sold......................... (548,448) 2,244,660 2,429,203 (925,352)
Net unrealized appreciation of
investments.............................. 967,511 38,579,050 29,858,056 10,339,127
Paid-in capital............................ 116,194,703 823,097,061 443,626,492 201,098,884
------------ ------------ ------------ ------------
$116,614,713 $863,981,401 $476,017,323 $210,512,659
============ ============ ============ ============
NET ASSETS:
Primary A Shares........................... $ 70,114,231 $858,006,947 $443,881,807 $199,721,640
============ ============ ============ ============
Investor A Shares.......................... $ 32,142,306 $ 3,332,676 $ 15,218,786 $ 7,246,022
============ ============ ============ ============
Investor B Shares (formerly Investor N
Shares).................................. $ 14,124,435 $ 1,957,721 $ 13,890,792 $ 3,425,278
============ ============ ============ ============
Investor C Shares.......................... $ 233,741 $ 684,057 $ 3,025,938 $ 119,719
============ ============ ============ ============
SHARES OUTSTANDING:
Primary A Shares........................... 6,994,132 83,463,296 39,150,134 18,669,573
============ ============ ============ ============
Investor A Shares.......................... 3,206,480 324,190 1,342,266 677,325
============ ============ ============ ============
Investor B Shares.......................... 1,408,974 190,440 1,225,112 320,187
============ ============ ============ ============
Investor C Shares.......................... 23,317 66,546 266,891 11,191
============ ============ ============ ============
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share.......................... $10.02 $10.28 $11.34 $10.70
------ ------ ------ ------
INVESTOR A SHARES:
Net asset value, offering and redemption
price per share.......................... $10.02 $10.28 $11.34 $10.70
------ ------ ------ ------
INVESTOR B SHARES:
Net asset value, offering and redemption
price per share.......................... $10.02 $10.28 $11.34 $10.70
------ ------ ------ ------
INVESTOR C SHARES:
Net asset value and offering price per
share*................................... $10.02 $10.28 $11.34 $10.70
------ ------ ------ ------
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 94
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30,
1997 (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>
$ 17,977 $ 9,933 $ 8,172 $ 28,863 $ 6,677 $ 10,964
(1,165,528) 573,112 (261,527) (1,066,099) (36,672) (43,159)
2,422,873 6,449,180 605,058 3,658,576 792,316 9,325,227
45,441,348 137,477,166 15,987,828 91,947,877 17,406,364 176,142,847
----------- ------------ ----------- ----------- ----------- ------------
$46,716,670 $144,509,391 $16,339,531 $94,569,217 $18,168,685 $185,435,879
=========== ============ =========== =========== =========== ============
$26,524,283 $125,613,425 $ 6,164,674 $73,251,477 $ 8,208,800 $170,574,042
=========== ============ =========== =========== =========== ============
$ 1,944,777 $ 9,505,921 $ 435,246 $15,337,720 $ 1,766,093 $ 6,841,920
=========== ============ =========== =========== =========== ============
$18,205,447 $ 7,605,258 $ 9,713,646 $ 4,208,514 $ 8,191,151 $ 6,647,539
=========== ============ =========== =========== =========== ============
$ 42,163 $ 1,784,787 $ 25,965 $ 1,771,506 $ 2,641 $ 1,372,378
=========== ============ =========== =========== =========== ============
2,690,801 11,536,603 625,922 6,679,045 839,452 16,036,792
=========== ============ =========== =========== =========== ============
197,291 873,038 44,192 1,398,478 180,608 643,256
=========== ============ =========== =========== =========== ============
1,846,880 698,478 986,262 383,734 837,654 624,988
=========== ============ =========== =========== =========== ============
4,277 163,917 2,636 161,524 270 129,028
=========== ============ =========== =========== =========== ============
$9.86 $10.89 $9.85 $10.97 $9.78 $10.64
----- ------ ----- ------ ----- ------
$9.86 $10.89 $9.85 $10.97 $9.78 $10.64
----- ------ ----- ------ ----- ------
$9.86 $10.89 $9.85 $10.97 $9.78 $10.64
----- ------ ----- ------ ----- ------
$9.86 $10.89 $9.85 $10.97 $9.78 $10.64
----- ------ ----- ------ ----- ------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 95
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30,
1997 (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....................... $ 24,024 $ 3,934 $ 7,728
Accumulated net realized gain/(loss) on investments
sold.................................................... (980,650) 102,103 (44,484)
Net unrealized appreciation of investments................ 1,676,944 15,027,188 803,989
Paid-in capital........................................... 28,751,362 261,202,628 18,485,377
----------- ------------ -----------
$29,471,680 $276,335,853 $19,252,610
=========== ============ ===========
NET ASSETS:
Primary A Shares.......................................... $ 4,495,066 $255,123,403 $ 6,854,564
=========== ============ ===========
Investor A Shares......................................... $ 691,179 $ 10,408,414 $ 1,704,764
=========== ============ ===========
Investor B Shares......................................... $24,266,098 $ 6,371,825 $10,690,550
=========== ============ ===========
Investor C Shares......................................... $ 19,337 $ 4,432,211 $ 2,732
=========== ============ ===========
SHARES OUTSTANDING:
Primary A Shares.......................................... 456,028 23,775,556 677,065
=========== ============ ===========
Investor A Shares......................................... 70,124 969,980 168,386
=========== ============ ===========
Investor B Shares......................................... 2,461,830 593,804 1,055,986
=========== ============ ===========
Investor C Shares......................................... 1,962 413,050 270
=========== ============ ===========
PRIMARY A SHARES:
Net asset value, offering and redemption price per
share................................................... $9.86 $10.73 $10.12
----- ------ ------
INVESTOR A SHARES:
Net asset value, offering and redemption price per
share................................................... $9.86 $10.73 $10.12
----- ------ ------
INVESTOR B SHARES:
Net asset value, offering and redemption price per
share................................................... $9.86 $10.73 $10.12
----- ------ ------
INVESTOR C SHARES:
Net asset value and offering price per share*............. $9.86 $10.73 $10.12
----- ------ ------
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 96
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30,
1997 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
TENNESSEE TENNESSEE TEXAS NATIONS VIRGINIA NATIONS
INTERMEDIATE MUNICIPAL INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL BOND FUND MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,693 $ 5,896 $ 1,137 $ 15,212 $ 145,586 $ 6,892
(252,972) (169,328) (668,131) (635,510) (622,210) (616,586)
1,849,266 536,189 18,127,719 1,097,239 10,942,336 1,087,487
45,304,349 9,152,917 370,428,294 15,959,215 211,009,398 22,830,446
---------- --------- ----------- ---------- ----------- ----------
$46,902,336 $9,525,674 $387,889,019 $16,436,156 $221,475,110 $23,308,239
=========== ========== ============ =========== ============ ===========
$36,849,952 $3,303,138 $383,866,194 $ 6,656,094 $152,720,664 $ 8,310,894
=========== ========== ============ =========== ============ ===========
$ 6,847,266 $1,342,155 $ 1,243,168 $ 412,044 $ 52,756,143 $ 831,549
=========== ========== ============ =========== ============ ===========
$ 3,202,628 $4,839,641 $ 2,160,287 $ 9,290,446 $ 10,077,790 $14,117,867
=========== ========== ============ =========== ============ ===========
$ 2,490 $ 40,740 $ 619,370 $ 77,572 $ 5,920,513 $ 47,929
=========== ========== ============ =========== ============ ===========
3,567,694 327,070 36,741,418 674,285 14,065,596 851,701
=========== ========== ============ =========== ============ ===========
662,954 132,898 118,989 41,741 4,858,865 85,214
=========== ========== ============ =========== ============ ===========
310,078 479,212 206,771 941,149 928,164 1,446,780
=========== ========== ============ =========== ============ ===========
241 4,034 59,282 7,858 545,296 4,912
=========== ========== ============ =========== ============ ===========
$10.33 $10.10 $10.45 $9.87 $10.86 $9.76
------ ------ ------ ----- ------ -----
$10.33 $10.10 $10.45 $9.87 $10.86 $9.76
------ ------ ------ ----- ------ -----
$10.33 $10.10 $10.45 $9.87 $10.86 $9.76
------ ------ ------ ----- ------ -----
$10.33 $10.10 $10.45 $9.87 $10.86 $9.76
------ ------ ------ ----- ------ -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 97
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (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............................................... $1,983,781 $10,881,550 $ 8,777,586 $ 2,637,143
Dividends.............................................. 69,448 170,740 52,905 30,108
---------- ----------- ----------- -----------
Total investment income.............................. 2,053,229 11,052,290 8,830,491 2,667,251
---------- ----------- ----------- -----------
EXPENSES:
Investment advisory fee (Note 2)....................... 223,527 1,073,379 925,105 256,575
Administration fee (Note 2)............................ 44,705 214,676 154,184 51,315
Transfer agent fees (Note 2)........................... 31,098 82,396 75,280 26,563
Custodian fees (Note 2)................................ 7,579 13,275 11,670 7,174
Legal and audit fees................................... 11,305 15,105 16,972 9,705
Trustees' fees and expenses (Note 2)................... 1,329 3,001 2,641 1,119
Amortization of organization costs (Note 6)............ 4,178 4,579 -- 2,883
Interest expense (Note 7).............................. 825 811 34 83
Registration and filing fees........................... 18,324 70,091 53,694 9,396
Other.................................................. 13,129 20,032 19,550 14,081
---------- ----------- ----------- -----------
Subtotal............................................. 355,999 1,497,345 1,259,130 378,894
Shareholder servicing and distribution fees (Note 3):
Investor A Shares.................................... 21,868 2,937 16,013 4,452
Investor B Shares.................................... 17,141 4,962 58,204 10,376
Investor C Shares.................................... 1,116 2,245 5,568 695
Fees waived and/or expenses reimbursed by investment
adviser and/or administrator (Note 2)................ (178,060) (424,026) (336,048) (122,590)
---------- ----------- ----------- -----------
Total expenses....................................... 218,064 1,083,463 1,002,867 271,827
---------- ----------- ----------- -----------
NET INVESTMENT INCOME.................................. 1,835,165 9,968,827 7,827,624 2,395,424
---------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period............................................... 98,654 2,388,075 5,737,537 75,089
Change in unrealized appreciation/(depreciation) of
investments during the period........................ 477,713 37,053,784 25,266,031 9,344,256
---------- ----------- ----------- -----------
Net realized and unrealized gain/(loss) on
investments.......................................... 576,367 39,441,859 31,003,568 9,419,345
---------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................................... $2,411,532 $49,410,686 $38,831,192 $11,814,769
========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 98
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
<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>
$1,136,952 $2,136,958 $435,114 $2,272,270 $417,334 $ 2,039,651
22,647 33,079 9,827 29,595 14,986 28,758
---------- ---------- -------- ---------- -------- -----------
1,159,599 2,170,037 444,941 2,301,865 432,320 2,068,409
---------- ---------- -------- ---------- -------- -----------
126,543 215,430 48,800 223,243 49,104 202,382
21,090 43,086 8,133 44,649 8,184 40,476
14,856 21,674 8,840 30,843 7,811 20,534
5,909 7,046 4,989 7,652 4,947 6,471
8,148 10,232 5,625 17,485 5,512 8,132
679 1,120 271 1,476 250 802
250 1,255 208 -- 400 1,199
-- 351 166 -- -- --
3,048 6,982 2,483 7,002 4,639 8,940
8,666 11,891 5,461 24,070 9,351 8,517
---------- ---------- -------- ---------- -------- -----------
189,189 319,067 84,976 356,420 90,198 297,453
1,852 9,208 300 14,824 1,665 6,251
73,152 22,975 39,001 12,877 32,307 20,239
127 5,804 176 5,732 8 4,180
(62,673) (103,696) (36,011) (132,910) (41,212) (95,086)
---------- ---------- -------- ---------- -------- -----------
201,647 253,358 88,442 256,943 82,966 233,037
---------- ---------- -------- ---------- -------- -----------
957,952 1,916,679 356,499 2,044,922 349,354 1,835,372
---------- ---------- -------- ---------- -------- -----------
(32,765) 851,221 98,741 (82,365) 49,302 304,005
1,633,660 5,165,681 486,139 2,292,037 563,269 8,261,978
---------- ---------- -------- ---------- -------- -----------
1,600,895 6,016,902 584,880 2,209,672 612,571 8,565,983
---------- ---------- -------- ---------- -------- -----------
$2,558,847 $7,933,581 $941,379 $4,254,594 $961,925 $10,401,355
========== ========== ======== ========== ======== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 99
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (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................................................ $ 751,106 $ 3,351,842 $489,808
Dividends............................................... 15,580 27,357 6,194
---------- ------------ --------
Total investment income............................... 766,686 3,379,199 496,002
---------- ------------ --------
EXPENSES:
Investment advisory fee (Note 2)........................ 85,131 319,760 54,298
Administration fee (Note 2)............................. 14,189 63,952 9,050
Transfer agent fees (Note 2)............................ 12,734 35,389 9,162
Custodian fees (Note 2)................................. 5,462 7,852 5,094
Legal and audit fees.................................... 7,155 11,322 5,851
Trustees' fees and expenses (Note 2).................... 486 1,387 313
Amortization of organization costs (Note 6)............. 251 2,776 300
Interest expense (Note 7)............................... 66 299 266
Registration and filing fees............................ 2,743 12,040 2,684
Other................................................... 7,446 15,629 5,323
---------- ------------ --------
Subtotal.............................................. 135,663 470,406 92,341
Shareholder servicing and distribution fees (Note 3):
Investor A Shares..................................... 572 10,638 1,046
Investor B Shares..................................... 92,918 14,251 43,066
Investor C Shares..................................... 58 17,654 284
Fees waived and/or expenses reimbursed by investment
adviser, administrator and/or custodian (Note 2)...... (49,938) (150,619) (37,781)
---------- ------------ --------
Total expenses........................................ 179,273 362,330 98,956
---------- ------------ --------
NET INVESTMENT INCOME................................... 587,413 3,016,869 397,046
---------- ------------ --------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 4):
Net realized gain/(loss) on investments sold during the
period................................................ 10,338 325,681 (59,670)
Change in unrealized appreciation/(depreciation) of
investments during the period......................... 1,114,144 13,771,981 659,909
---------- ------------ --------
Net realized and unrealized gain/(loss) on
investments........................................... 1,124,482 14,097,662 600,239
---------- ------------ --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $1,711,895 $ 17,114,531 $997,285
========== ============ ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 100
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
<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>
$ 666,811 $244,546 $ 3,294,709 $ 439,239 $ 5,804,159 $ 592,917
15,817 6,254 73,921 9,600 40,092 11,983
----------- -------- ------------ ---------- ------------ ----------
682,628 250,800 3,368,630 448,839 5,844,251 604,900
----------- -------- ------------ ---------- ------------ ----------
67,683 28,684 323,214 48,820 554,731 65,474
13,536 4,654 64,643 8,136 110,946 10,912
9,775 5,763 18,912 10,163 96,389 13,296
5,210 4,739 6,918 5,181 12,807 5,181
6,068 4,990 7,293 5,851 22,681 6,178
346 155 808 287 3,789 356
994 409 621 553 -- 250
394 75 -- 303 794 --
5,080 3,639 18,076 2,142 6,893 2,661
7,930 5,267 8,959 7,028 34,552 6,580
----------- -------- ------------ ---------- ------------ ----------
117,016 58,375 449,444 88,464 843,582 110,888
6,899 1,297 1,037 376 52,216 768
9,459 19,881 6,442 37,640 31,070 55,421
7 123 1,825 234 18,865 145
(49,122) (30,376) (126,267) (38,625) (287,029) (45,605)
----------- -------- ------------ ---------- ------------ ----------
84,259 49,300 332,481 88,089 658,704 121,617
----------- -------- ------------ ---------- ------------ ----------
598,369 201,500 3,036,149 360,750 5,185,547 483,283
----------- -------- ------------ ---------- ------------ ----------
55,689 36,112 343,031 101,076 120,217 50,169
1,567,822 340,768 17,712,011 552,370 5,305,228 741,740
----------- -------- ------------ ---------- ------------ ----------
1,623,511 376,880 18,055,042 653,446 5,425,445 791,909
----------- -------- ------------ ---------- ------------ ----------
$ 2,221,880 $578,380 $ 21,091,191 $1,014,196 $ 10,610,992 $1,275,192
=========== ======== ============ ========== ============ ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 101
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (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........................... $ 1,835,165 $ 9,968,827 $ 7,827,624 $ 2,395,424
Net realized gain/(loss) on investments......... 98,654 2,388,075 5,737,537 75,089
Change in unrealized appreciation/(depreciation)
of investments................................ 477,713 37,053,784 25,266,031 9,344,256
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.................................... 2,411,532 49,410,686 38,831,192 11,814,769
Distributions to shareholders from net
investment income:
Primary A Shares.............................. (1,213,353) (9,853,614) (7,057,675) (2,223,102)
Investor A Shares............................. (423,832) (65,485) (398,252) (97,215)
Investor B Shares............................. (185,448) (34,313) (330,512) (70,291)
Investor C Shares............................. (12,532) (15,415) (41,185) (4,816)
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares.............................. 8,665,076 710,507,806 337,083,559 138,743,451
Investor A Shares............................. 23,595,357 1,183,146 (572,609) 5,024,556
Investor B Shares............................. 3,405,004 431,733 (1,403,122) (165,077)
Investor C Shares............................. (850,621) (92,400) 1,242,895 (159,654)
------------ ------------ ------------ ------------
Net increase/(decrease) in net assets........... 35,391,183 751,472,144 367,354,291 152,862,621
NET ASSETS:
Beginning of period............................. 81,223,530 112,509,257 108,663,032 57,650,038
------------ ------------ ------------ ------------
End of period................................... $116,614,713 $863,981,401 $476,017,323 $210,512,659
============ ============ ============ ============
Undistributed net investment income at end of
period........................................ $ 947 $ 60,630 $ 103,572 $ --
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 102
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<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>
$ 957,952 $ 1,916,679 $ 356,499 $ 2,044,922 $ 349,354 $ 1,835,372
(32,765) 851,221 98,741 (82,365) 49,302 304,005
1,633,660 5,165,681 486,139 2,292,037 563,269 8,261,978
----------- ------------ ----------- ----------- ----------- -------------
2,558,847 7,933,581 941,379 4,254,594 961,925 10,401,355
(527,240) (1,529,602) (144,420) (1,581,760) (151,731) (1,534,907)
(43,972) (197,508) (6,903) (337,596) (36,500) (139,132)
(385,860) (151,211) (203,932) (86,733) (161,070) (133,666)
(881) (38,358) (1,244) (38,833) (53) (27,667)
9,033,108 76,661,948 404,229 8,026,627 3,374,219 136,558,260
91,052 438,597 209,779 (26,700) 295,036 940,684
(2,283,137) (216,033) (822,120) (199,069) (220,231) (336,954)
880 (255,617) (48,756) (293,724) 53 (30,898)
----------- ------------ ----------- ----------- ----------- -------------
8,442,797 82,645,797 328,012 9,716,806 4,061,648 145,697,075
38,273,873 61,863,594 16,011,519 84,852,411 14,107,037 39,738,804
----------- ------------ ----------- ----------- ----------- -------------
$46,716,670 $144,509,391 $16,339,531 $94,569,217 $18,168,685 $ 185,435,879
=========== ============ =========== =========== =========== =============
$ 17,977 $ 9,933 $ 8,172 $ 28,863 $ 6,677 $ 10,964
=========== ============ =========== =========== =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 103
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (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....................................... $ 587,413 $ 3,016,869 $ 397,046
Net realized gain/(loss) on investments..................... 10,338 325,681 (59,670)
Change in unrealized appreciation/(depreciation) of
investments............................................... 1,114,144 13,771,981 659,909
------------ ------------- ------------
Net increase in net assets resulting from operations........ 1,711,895 17,114,531 997,285
Distributions to shareholders from net investment income:
Primary A Shares.......................................... (92,847) (2,554,757) (144,295)
Investor A Shares......................................... (14,140) (240,802) (24,028)
Investor B Shares......................................... (480,032) (122,341) (226,502)
Investor C Shares......................................... (394) (98,969) (2,221)
Net increase/(decrease) in net assets from Fund share
transactions:
Primary A Shares.......................................... 1,248,547 192,575,016 1,548,997
Investor A Shares......................................... 72,908 (289,362) 863,682
Investor B Shares......................................... (543,980) 504,155 (1,786,349)
Investor C Shares......................................... 394 (761,696) (248,045)
------------ ------------- ------------
Net increase/(decrease) in net assets....................... 1,902,351 206,125,775 978,524
NET ASSETS:
Beginning of period......................................... 27,569,329 70,210,078 18,274,086
------------ ------------- ------------
End of period............................................... $ 29,471,680 $ 276,335,853 $ 19,252,610
============ ============= ============
Undistributed net investment income at end of period........ $ 24,024 $ 3,934 $ 7,728
============ ============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 104
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<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>
$ 598,369 $ 201,500 $ 3,036,149 $ 360,750 $ 5,185,547 $ 483,283
55,689 36,112 343,031 101,076 120,217 50,169
1,567,822 340,768 17,712,011 552,370 5,305,228 741,740
----------- ---------- ------------ ----------- ------------ -----------
2,221,880 578,380 21,091,191 1,014,196 10,610,992 1,275,192
(392,403) (68,773) (2,957,717) (150,466) (3,623,724) (170,095)
(146,030) (29,838) (22,617) (8,965) (1,213,482) (18,632)
(59,889) (102,062) (43,527) (199,700) (201,773) (293,543)
(47) (827) (12,288) (1,619) (146,568) (1,013)
26,596,140 594,274 341,144,246 737,238 298,269 2,346,879
(155,461) 271,916 309,088 25,592 (4,326,689) 76,887
77,302 (688,283) (77,803) (1,191,691) (694,050) (377,572)
49 827 12,288 1,618 (697,810) 1,013
----------- ---------- ------------ ----------- ------------ -----------
28,141,541 555,614 359,442,861 226,203 5,165 2,839,116
18,760,795 8,970,060 28,446,158 16,209,953 221,469,945 20,469,123
----------- ---------- ------------ ----------- ------------ -----------
$46,902,336 $9,525,674 $387,889,019 $16,436,156 $221,475,110 $23,308,239
=========== ========== ============ =========== ============ ===========
$ 1,693 $ 5,896 $ 1,137 $ 15,212 $ 145,586 $ 6,892
=========== ========== ============ =========== ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 105
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 1997
<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............................. $ 3,040,641 $ 4,409,368 $ 5,503,092 $ 2,490,541
Net realized gain/(loss) on investments........... 61,058 235,923 1,142,681 (30,898)
Change in unrealized appreciation/(depreciation)
of investments.................................. (307,856) (562,215) (753,768) (354,732)
----------- ------------ ------------ -----------
Net increase in net assets resulting from
operations...................................... 2,793,843 4,083,076 5,892,005 2,104,911
Distributions to shareholders from net investment
income:
Primary A Shares................................ (2,281,637) (4,229,321) (3,726,441) (2,200,901)
Investor A Shares............................... (252,440) (82,555) (935,349) (114,523)
Investor B Shares............................... (446,785) (65,237) (750,105) (165,677)
Investor C Shares............................... (59,779) (32,255) (91,197) (9,440)
Net increase/(decrease) in net assets from Fund
share transactions:
Primary A Shares................................ 12,736,118 31,093,197 9,007,226 7,109,886
Investor A Shares............................... 3,838,818 581,183 (11,054,474) 121,830
Investor B Shares............................... (3,159,815) (138,009) (2,357,406) (489,261)
Investor C Shares............................... (986,312) 37,778 (470,496) 323
----------- ------------ ------------ -----------
Net increase/(decrease) in net assets............. 12,182,011 31,247,857 (4,486,237) 6,357,148
NET ASSETS:
Beginning of year................................. 69,041,519 81,261,400 113,149,269 51,292,890
----------- ------------ ------------ -----------
End of year....................................... $81,223,530 $112,509,257 $108,663,032 $57,650,038
=========== ============ ============ ===========
Undistributed net investment income at end of
year............................................ $ 947 $ 60,630 $ 103,572 $ --
=========== ============ ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE> 106
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<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>
$ 1,772,810 $ 2,674,918 $ 641,380 $ 3,944,353 $ 608,097 $ 1,749,355
(210,373) 73,261 43,488 1,745 (30,459) (11,423)
189,030 (398,430) (35,496) (832,530) 55,520 (66,100)
----------- ----------- ----------- ----------- ----------- ------------
1,751,467 2,349,749 649,372 3,113,568 633,158 1,671,832
)
(725,315 (1,857,490) (158,769) (2,892,805) (179,533) (1,106,565)
(95,467) (390,944) (6,345) (760,315) (66,776) (289,190)
(950,250) (330,178) (473,179) (184,325) (361,680) (297,013)
(1,778) (96,306) (3,087) (106,908) (108) (56,587)
3,709,085 5,482,256 3,500,180 2,823,654 1,802,900 4,732,402
(65,643) 232,646 200,730 (4,309,404) 317,957 (1,931,811)
(4,214,981) (459,769) (2,097,679) (160,894) (1,576,575) (1,285,915)
1,778 (456,040) 3,087 (863,300) 108 (11,762)
----------- ----------- ----------- ----------- ----------- ------------
(591,104) 4,473,924 1,614,310 (3,340,729) 569,451 1,425,391
38,864,977 57,389,670 14,397,209 88,193,140 13,537,586 38,313,413
----------- ----------- ----------- ----------- ----------- ------------
$38,273,873 $61,863,594 $16,011,519 $84,852,411 $14,107,037 $ 39,738,804
=========== =========== =========== =========== =========== ============
$ 17,978 $ 9,933 $ 8,172 $ 28,863 $ 6,677 $ 10,964
=========== =========== =========== =========== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE> 107
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD ENDED MARCH 31, 1997
<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........................................ $ 1,234,634 $ 3,276,348 $ 797,602
Net realized gain/(loss) on investments...................... (30,053) 200,162 54,323
Change in unrealized appreciation/(depreciation) of
investments................................................ (31,510) (320,293) (24,716)
------------ ------------ ------------
Net increase in net assets resulting from operations......... 1,173,071 3,156,217 827,209
Distributions to shareholders from net investment income:
Primary A Shares .......................................... (115,090) (2,152,396) (197,197)
Investor A Shares ......................................... (24,029) (602,275) (47,497)
Investor B Shares ......................................... (1,094,722) (287,063) (541,690)
Investor C Shares ......................................... (793) (234,614) (11,218)
Net increase/(decrease) in net assets from Fund share
transactions:
Primary A Shares .......................................... 1,513,901 7,210,466 3,052,543
Investor A Shares ......................................... 148,174 (3,826,508) (409,632)
Investor B Shares ......................................... (4,388,434) (1,220,014) (914,041)
Investor C Shares ......................................... 793 (315,082) (16,765)
------------ ------------ ------------
Net increase/(decrease) in net assets........................ (2,787,129) 1,728,731 1,741,712
NET ASSETS:
Beginning of year............................................ 30,356,458 68,481,347 16,532,374
------------ ------------ ------------
End of year.................................................. $ 27,569,329 $ 70,210,078 $ 18,274,086
============ ============ ============
Undistributed net investment income at end of year........... $ 24,024 $ 3,934 $ 7,728
============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE> 108
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<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>
$ 825,749 $ 362,955 $ 1,448,768 $ 783,128 $ 10,665,828 $ 916,887
5,649 3,409 7,708 76,398 939,225 (40,560)
(40,872) 5,672 (34,218) (46,562) (3,178,654) 84,735
----------- ----------- ----------- ----------- ------------- -----------
790,526 372,036 1,422,258 812,964 8,426,399 961,062
(385,987) (75,170) (1,287,524) (293,983) (7,108,542) (223,872)
(305,932) (46,783) (38,114) (17,461) (2,780,800) (32,652)
(133,734) (239,349) (99,405) (468,468) (486,499) (658,331)
(96) (1,653) (23,725) (3,216) (289,987) (2,032)
487,962 1,627,730 (2,398,208) 510,593 (5,256,690) 2,428,702
(591,615) 43,604 109,465 53,715 (11,640,180) 64,024
(477,355) (1,457,124) (653,342) (1,750,002) (1,311,327) (2,008,842)
96 1,653 23,725 3,215 (384,351) 2,032
----------- ----------- ----------- ----------- ------------- -----------
(616,135) 224,944 (2,944,870) (1,152,643) (20,831,977) 530,091
19,376,930 8,745,116 31,391,028 17,362,596 242,301,922 19,939,032
----------- ----------- ----------- ----------- ------------- -----------
$18,760,795 $ 8,970,060 $28,446,158 $16,209,953 $221,469,945 $20,469,123
=========== =========== =========== =========== ============= ===========
$ 1,693 $ 5,896 $ 1,137 $ 15,212 $ 145,586 $ 6,892
=========== =========== =========== =========== ============= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE> 109
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INCOME FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 2,633,015 $ 26,370,880 4,368,213 $ 43,578,419
Issued in exchange for Pilot Shares of Pilot:
Intermediate Municipal Fund (Note 9)........................... -- -- -- --
Municipal Bond Fund (Note 9)................................... -- -- -- --
Issued in exchange for Common Trust Shares of Nations Common
Trust:
Intermediate Municipal Fund (Note 9)........................... -- -- -- --
Municipal Bond Fund (Note 9)................................... -- -- -- --
Issued as reinvestment of dividends.............................. 937 9,368 1,632 16,286
Redeemed......................................................... (1,775,594) (17,715,172) (3,093,414) (30,858,587)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 858,358 $ 8,665,076 1,276,431 $ 12,736,118
========== ============ ========== ============
INVESTOR A SHARES:
Sold............................................................. 2,788,121 $ 27,866,247 866,486 $ 8,632,324
Issued in exchange for Class A Shares of Pilot:
Intermediate Municipal Fund (Note 9)........................... -- -- -- --
Municipal Bond Fund (Note 9)................................... -- -- -- --
Issued as reinvestment of dividends.............................. 614,972 6,172,838 21,810 217,532
Redeemed......................................................... (1,042,266) (10,443,728) (503,339) (5,011,038)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 2,360,827 $ 23,595,357 384,957 $ 3,838,818
========== ============ ========== ============
INVESTOR B SHARES:
Sold............................................................. 703,124 $ 7,039,469 632,233 $ 6,308,576
Issued in exchange for Class B Shares of Pilot:
Municipal Bond Fund (Note 9)................................... -- -- -- --
Issued as reinvestment of dividends.............................. 14,193 141,937 41,012 409,216
Redeemed......................................................... (378,811) (3,776,402) (991,095) (9,877,607)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 338,506 $ 3,405,004 (317,850) $ (3,159,815)
========== ============ ========== ============
INVESTOR C SHARES:
Sold............................................................. (9,063) $ (90,182) 17,035 $ 169,722
Issued as reinvestment of dividends.............................. 788 7,878 5,832 58,158
Redeemed......................................................... (76,885) (768,317) (121,972) (1,214,192)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (85,160) $ (850,621) (99,105) $ (986,312)
========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE> 110
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL BOND FUND MUNICIPAL INCOME FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997 (UNAUDITED) MARCH 31, 1997
--------------------------- --------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
4,385,910 $ 44,632,301 4,979,213 $50,069,761 3,356,410 $ 37,735,787 2,730,515 $ 29,871,880
21,603,105 212,188,420 -- -- -- -- -- --
-- -- -- -- 17,965,582 187,858,832 -- --
49,075,326 478,344,276 -- -- -- -- -- --
-- -- -- -- 14,127,038 149,569,075 -- --
13,587 138,788 7,773 78,150 9,046 101,715 9,420 102,911
(2,428,371) (24,795,979) (1,895,410) (19,054,714) (3,401,769) (38,181,850) (1,923,927) (20,967,565)
---------- ------------ ---------- ----------- ---------- ------------ ---------- ------------
72,649,557 $710,507,806 3,091,576 $31,093,197 32,056,307 $337,083,559 816,008 $ 9,007,226
========== ============ ========== =========== ========== ============ ========== ============
57,620 $ 584,184 169,102 $ 1,696,765 148,422 $ 1,579,947 1,080,246 $ 11,738,664
82,746 830,243 -- -- -- -- -- --
-- -- -- -- 147,004 1,612,299 -- --
4,555 46,430 5,517 55,382 19,309 216,046 47,889 522,701
(27,333) (277,711) (117,609) (1,170,964) (356,631) (3,980,901) (2,151,350) (23,315,839)
---------- ------------ ---------- ----------- ---------- ------------ ---------- ------------
117,588 $ 1,183,146 57,010 $ 581,183 (41,896) $ (572,609) (1,023,215) $(11,054,474)
========== ============ ========== =========== ========== ============ ========== ============
44,969 $ 458,066 11,720 $ 118,086 19,698 $ 137,364 46,816 $ 505,476
-- -- -- -- 141,044 1,560,236 -- --
1,559 15,883 3,724 37,407 14,843 166,095 35,015 382,426
(4,137) (42,216) (29,316) (293,502) (292,334) (3,266,817) (296,881) (3,245,308)
---------- ------------ ---------- ----------- ---------- ------------ ---------- ------------
42,391 $ 431,733 (13,872) $ (138,009) (116,749) $ (1,403,122) (215,050) $ (2,357,406)
========== ============ ========== =========== ========== ============ ========== ============
485 $ 4,984 22,724 $ 229,240 115,128 $ 1,305,550 6,900 $ 76,000
1,002 10,158 3,462 32,336 2,306 25,819 5,154 56,295
(10,502) (107,542) (21,999) (223,798) (7,808) (88,474) (55,293) (602,791)
---------- ------------ ---------- ----------- ---------- ------------ ---------- ------------
(9,015) $ (92,400) 4,187 $ 37,778 109,626 $ 1,242,895 (43,239) $ (470,496)
========== ============ ========== =========== ========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE> 111
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 1,337,743 $ 14,180,076 1,806,440 $ 18,900,351
Issued in exchange for Shares of Peachtree Georgia Tax-Free
Income Fund (Note 9)........................................... -- -- -- --
Issued in exchange for Common Trust Shares of Nations Common
Trust:
Florida Tax-Exempt Income Fund (Note 9)........................ 12,806,781 129,319,669 -- --
Georgia Municipal Fund (Note 9)................................ -- -- -- --
Bank South Tax-Free Fund (Note 9).............................. -- -- -- --
Issued as reinvestment of dividends.............................. 2,158 22,904 7,678 80,228
Redeemed......................................................... (453,505) (4,779,198) (1,138,077) (11,870,693)
-------- ---------- ---------- -----------
Net increase/(decrease).......................................... 13,693,177 $138,743,451 676,041 $ 7,109,886
========== ============ ========== ============
INVESTOR A SHARES:
Sold............................................................. 503,301 $ 5,363,349 295,572 $ 3,093,698
Issued as reinvestment of dividends.............................. 5,125 54,538 4,813 50,328
Redeemed......................................................... (37,020) (393,331) (288,370) (3,022,196)
-------- ---------- ---------- -----------
Net increase/(decrease).......................................... 471,406 $ 5,024,556 12,015 $ 121,830
========== ============ ========== ============
======== ========== ========== ===========
INVESTOR B SHARES:
Sold............................................................. 10,040 $ 106,079 12,072 $ 125,929
Issued as reinvestment of dividends.............................. 4,186 44,356 9,672 101,158
Redeemed......................................................... (29,501) (315,512) (68,762) (716,348)
-------- ---------- ---------- -----------
Net increase/(decrease).......................................... (15,275) $ (165,077) (47,018) $ (489,261)
========== ============ ========== ============
======== ========== ========== ===========
INVESTOR C SHARES:
Sold............................................................. -- $ -- 14,327 $ 150,599
Issued as reinvestment of dividends.............................. 147 1,533 554 5,806
Redeemed......................................................... (15,077) (161,187) (15,037) (156,082)
-------- ---------- ---------- -----------
Net increase/(decrease).......................................... (14,930) $ (159,654) (156) $ 323
========== ============ ========== ============
======== ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
GEORGIA MUNICIPAL BOND FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold............................................................. 147,282 $ 1,434,871 476,900 $ 4,553,988
Issued as reinvestment of dividends.............................. 6 40 28 265
Redeemed......................................................... (105,581) (1,030,682) (110,850) (1,054,073)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 41,707 $ 404,229 366,078 $ 3,500,180
========== ============ ========== ============
INVESTOR A SHARES:
Sold............................................................. 21,694 $ 203,562 21,228 $ 201,516
Issued as reinvestment of dividends.............................. 637 6,217 584 5,574
Redeemed......................................................... -- -- (670) (6,360)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... 22,331 $ 209,779 21,142 $ 200,730
========== ============ ========== ============
INVESTOR B SHARES:
Sold............................................................. 10,099 $ 97,165 4,541 $ 42,751
Issued as reinvestment of dividends.............................. 11,004 107,145 27,898 265,858
Redeemed......................................................... (106,824) (1,026,430) (252,803) (2,406,288)
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (85,721) $ (822,120) (220,364) $ (2,097,679)
========== ============ ========== ============
INVESTOR C SHARES:
Sold............................................................. 8 $ 86 -- $ --
Issued as reinvestment of dividends.............................. 119 1,158 329 3,087
Redeemed......................................................... (5,055) (50,000) -- --
---------- ------------ ---------- ------------
Net increase/(decrease).......................................... (4,928) $ (48,756) 329 $ 3,087
========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE> 112
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND FUND GEORGIA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997 (UNAUDITED) MARCH 31, 1997
-------------------------- --------------------------- -------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1,481,964 $14,471,938 780,552 $ 7,452,607 741,339 $ 8,008,155 1,093,268 $11,620,800
-- -- -- -- -- -- 120,237 1,278,074
-- -- -- -- -- -- -- --
-- -- -- -- 4,858,036 49,639,320 -- --
-- -- -- -- 2,405,397 25,236,507 -- --
159 1,882 365 3,485 1,700 18,403 1,745 18,655
(554,056) (5,440,712) (394,938) (3,747,007) (578,932) (6,240,437) (700,605) (7,435,273)
--------- ----------- -------- ----------- --------- ----------- --------- -----------
928,067 $ 9,033,108 385,979 $ 3,709,085 7,427,540 $76,661,948 514,645 $ 5,482,256
========= =========== ======== =========== ========= =========== ========= ===========
9,766 $ 95,549 174,121 $ 1,646,866 79,448 857,783 88,314 944,307
1,903 18,527 1,691 16,147 18,331 197,356 28,390 302,296
(2,354) (23,024) (181,645) (1,728,656) (57,537) (616,542) (95,049) (1,013,957)
--------- ----------- -------- ----------- --------- ----------- --------- -----------
9,315 $ 91,052 (5,833) $ (65,643) 40,242 $ 438,597 21,655 $ 232,646
========= =========== ======== =========== ========= =========== ========= ===========
64,189 $ 641,006 42,999 $ 409,858 5,047 $ 54,572 15,463 $ 164,476
14,217 168,320 44,974 428,432 7,810 83,971 13,852 147,469
(315,992) (3,092,463) (531,093) (5,053,271) (32,940) (354,576) (72,333) (771,714)
--------- ----------- -------- ----------- --------- ----------- --------- -----------
(237,586) $(2,283,137) (443,120) $(4,214,981) (20,083) $ (216,033) (43,018) $ (459,769)
========= =========== ======== =========== ========= =========== ========= ===========
-- $ -- -- $ -- -- $ -- 104 $ 1,101
91 880 186 1,778 2,602 28,026 6,230 66,333
-- -- -- -- (26,093) (283,643) (48,861) (523,474)
--------- ----------- -------- ----------- --------- ----------- --------- -----------
91 $ 880 186 $ 1,778 (23,491) $ (255,617) (42,527) $ (456,040)
========= =========== ======== =========== ========= =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
MARYLAND INTERMEDIATE MUNICIPAL BOND FUND MARYLAND MUNICIPAL BOND FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997 (UNAUDITED) MARCH 31, 1997
-------------------------- --------------------------- -------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1,034,732 $11,243,544 1,570,112 $ 16,929,308 384,505 $3,698,684 234,636 $ 2,211,353
2,891 31,472 4,891 52,630 212 2,052 669 6,304
(299,044) (3,248,389) (1,315,560) (14,158,284) (33,582) (326,517) (43,789) (414,757)
-------- ----------- ---------- ------------ ------- ---------- -------- -----------
738,579 $ 8,026,627 259,443 $ 2,823,654 351,135 $3,374,219 191,516 $ 1,802,900
======== =========== ========== ============ ======= ========== ======== ===========
33,308 $ 360,259 193,291 $ 2,078,842 31,099 $ 297,500 67,007 $ 629,185
25,600 278,200 56,201 605,703 3,238 31,279 5,602 52,846
(61,489) (665,159) (650,416) (6,993,949) (3,471) (33,743) (38,486) (364,074)
-------- ----------- ---------- ------------ ------- ---------- -------- -----------
(2,581) $ (26,700) (400,924) $ (4,309,404) 30,866 $ 295,036 34,123 $ 317,957
======== =========== ========== ============ ======= ========== ======== ===========
11,300 $ 123,137 7,691 $ 82,996 8,557 $ 81,671 15,656 $ 146,980
6,456 70,144 13,622 146,840 12,648 121,976 28,413 268,108
(35,858) (392,350) (36,251) (390,730) (44,030) (423,878) (212,307) (1,991,663)
-------- ----------- ---------- ------------ ------- ---------- -------- -----------
(18,102) $ (199,069) (14,938) $ (160,894) (22,825) $ (220,231) (168,238) $(1,576,575)
======== =========== ========== ============ ======= ========== ======== ===========
54 $ 600 5,524 $ 59,620 -- $ -- -- $ --
2,934 31,915 8,140 87,716 5 53 12 108
(29,995) (326,239) (93,693) (1,010,636) -- -- -- --
-------- ----------- ---------- ------------ ------- ---------- -------- -----------
(27,007) $ (293,724) (80,029) $ (863,300) 5 $ 53 12 $ 108
======== =========== ========== ============ ======= ========== ======== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE> 113
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
----------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold......................................................... 463,534 $ 4,888,843 1,014,731 $10,515,384
Issued in exchange for Common Trust Shares of Nations Common
Trust:
North Carolina Tax-Exempt Income Fund (Note 9)............. 13,384,781 134,943,258 -- --
Old Colony South Carolina Tax-Exempt Fund (Note 9)......... -- -- -- --
South Carolina Municipal Fund (Note 9)..................... -- -- -- --
Issued as reinvestment of dividends.......................... -- -- 607 6,285
Redeemed..................................................... (311,747) (3,273,841) (557,201) (5,789,267)
---------- ----------- --------- ----------
Net increase/(decrease)...................................... 13,536,568 $136,558,260 458,137 $ 4,732,402
========== ============ ========= ===========
INVESTOR A SHARES:
Sold......................................................... 164,847 $ 1,723,354 347,293 $ 3,646,011
Issued as reinvestment of dividends.......................... 11,173 117,709 21,334 222,005
Redeemed..................................................... (86,203) (900,379) (555,498) (5,799,827)
---------- ------------ --------- -----------
Net increase/(decrease)...................................... 89,817 $ 940,684 (186,871) $(1,931,811)
========== ============ ========= ===========
INVESTOR B SHARES:
Sold......................................................... 9,021 $ 95,657 51,624 $ 534,364
Issued as reinvestment of dividends.......................... 9,549 100,566 22,387 232,636
Redeemed..................................................... (50,773) (533,177) (198,704) (2,052,915)
---------- ------------ --------- -----------
Net increase/(decrease)...................................... (32,203) $ (336,954) (124,693) $(1,285,915)
========== ============ ========= ===========
INVESTOR C SHARES:
Sold......................................................... -- $ -- -- $ --
Issued as reinvestment of dividends.......................... 2,381 25,065 4,951 51,463
Redeemed..................................................... (5,289) (55,963) (6,051) (63,225)
---------- ------------ --------- -----------
Net increase/(decrease)...................................... (2,908) $ (30,898) (1,100) $ (11,762)
========== ============ ========= ===========
</TABLE>
<TABLE>
<CAPTION>
SOUTH CAROLINA MUNICIPAL BOND FUND
SIX MONTHS ENDED SEPTEMBER
30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
----------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold......................................................... 176,418 $ 1,767,200 360,137 $ 3,527,760
Issued in exchange for Common Trust Shares of Nations Common
Trust:
Tennessee Municipal Fund (Note 9).......................... -- -- -- --
Issued as reinvestment of dividends.......................... 13 128 -- --
Redeemed..................................................... (21,789) (218,331) (48,358) (475,217)
---------- ------------ --------- -----------
Net increase................................................. 154,642 $ 1,548,997 311,779 $ 3,052,543
========= =========== ======== ==========
INVESTOR A SHARES:
Sold......................................................... 85,011 $ 858,290 7,567 $ 74,339
Issued as reinvestment of dividends.......................... 1,665 16,707 3,635 35,610
Redeemed..................................................... (1,127) (11,315) (53,101) (519,581)
---------- ------------ --------- -----------
Net increase/(decrease)...................................... 85,549 $ 863,682 (41,899) $ (409,632)
========= =========== ======== ==========
INVESTOR B SHARES:
Sold......................................................... 28,754 $ 290,898 145,761 $ 1,437,355
Issued as reinvestment of dividends.......................... 15,317 153,108 32,931 323,684
Redeemed..................................................... (224,852) (2,230,355) (271,284) (2,675,080)
---------- ------------ --------- -----------
Net increase/(decrease)...................................... (180,781) $ (1,786,349) (92,592) $ (914,041)
========= =========== ======== ==========
INVESTOR C SHARES:
Sold......................................................... 1 $ 10 -- $ --
Issued as reinvestment of dividends.......................... 27 274 19 180
Redeemed..................................................... (25,019) (248,329) (1,739) (16,945)
---------- ------------ --------- -----------
Net increase/(decrease)...................................... (24,991) $ (248,045) (1,720) $ (16,765)
========= =========== ======== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE> 114
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL BOND FUND SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997 (UNAUDITED) MARCH 31, 1997
------------------------ ------------------------ --------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
179,528 $ 1,734,000 321,358 $ 3,060,134 521,671 $ 5,566,112 1,335,506 $14,059,668
-- -- -- -- -- -- -- --
-- -- -- -- 6,420,542 63,582,961 -- --
-- -- -- -- 12,876,466 130,902,793 -- --
6 60 261 2,464 5,458 58,210 9,601 101,149
(50,251) (485,513) (162,637) (1,548,697) (708,222) (7,525,060) (660,889) (6,950,351)
-------- ----------- -------- ----------- ---------- ------------ --------- -----------
129,283 $ 1,248,547 158,982 $ 1,513,901 19,115,915 $192,575,016 684,218 $ 7,210,466
======== =========== ======== =========== ========== ============ ========= ===========
14,046 $ 136,730 33,554 $ 319,668 102,580 $ 1,088,295 28,019 $ 295,941
1,304 12,665 2,283 21,755 9,462 100,876 25,255 265,917
(7,923) (76,487) (20,351) (193,249) (138,924) (1,478,533) (414,675) (4,388,366)
-------- ----------- -------- ----------- ---------- ------------ --------- -----------
7,427 $ 72,908 15,486 $ 148,174 (26,882) $ (289,362) (361,401) $(3,826,508)
======== =========== ======== =========== ========== ============ ========= ===========
50,964 $ 500,467 21,081 $ 200,477 105,960 $ 1,127,537 165,111 $ 1,751,110
34,938 339,429 81,214 772,682 7,786 82,983 17,417 183,517
(143,788) (1,383,876) (563,321) (5,361,593) (66,553) (706,365) (298,337) (3,154,641)
-------- ----------- -------- ----------- ---------- ------------ --------- -----------
(57,886) $ (543,980) (461,026) $(4,388,434) 47,193 $ 504,155 (115,809) $(1,220,014)
======== =========== ======== =========== ========== ============ ========= ===========
-- $ -- -- $ -- 1,188 $ 12,664 58,225 $ 606,527
41 394 83 793 5,428 57,845 13,422 141,375
-- -- -- -- (78,292) (832,205) (101,102) (1,062,984)
-------- ----------- -------- ----------- ---------- ------------ --------- -----------
41 $ 394 83 $ 793 (71,676) $ (761,696) (29,455) $ (315,082)
======== =========== ======== =========== ========== ============ ========= ===========
</TABLE>
<TABLE>
<CAPTION>
TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND TENNESSEE MUNICIPAL BOND FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997 (UNAUDITED) MARCH 31, 1997
------------------------ ------------------------ --------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
297,998 $ 2,872,502 291,105 $ 2,938,293 94,070 $ 939,002 173,358 $ 1,693,318
2,471,206 24,380,137 -- -- -- -- -- --
46 471 1,071 10,734 6 60 7 68
(81,349) (656,970) (245,724) (2,461,065) (34,380) (344,788) (6,759) (65,656)
--------- ----------- ------- ----------- ------- --------- ------- -----------
2,687,901 $26,596,140 46,452 $ 487,962 59,696 $ 594,274 166,606 $ 1,627,730
========= =========== ======= =========== ======= ========= ======= ===========
33,406 $ 340,011 6,038 $ 60,692 27,554 $ 267,957 200 $ 1,946
11,119 113,864 24,148 244,190 2,858 28,475 4,457 43,363
(60,152) (609,336) (88,908) (896,497) (2,474) (24,516) (177) (1,705)
--------- ----------- ------- ----------- ------- --------- ------- -----------
(15,627) $ (155,461) (58,722) $ (591,615) 27,938 $ 271,916 4,480 $ 43,604
========= =========== ======= =========== ======= ========= ======= ===========
9,748 $ 100,300 9,489 $ 95,584 7,500 $ 75,000 3,320 $ 32,017
4,984 51,388 10,558 106,766 7,979 79,469 18,104 176,057
(7,178) (74,386) (67,201) (679,705) (84,419) (842,752) (171,629) (1,665,198)
--------- ----------- ------- ----------- ------- --------- ------- -----------
7,554 $ 77,302 (47,154) $ (477,355) (68,940) $(688,283) (150,205) $(1,457,124)
========= =========== ======= =========== ======= ========= ======= ===========
-- $ -- -- $ -- -- $ -- -- $ --
5 49 9 96 83 827 170 1,653
-- -- -- -- -- -- -- --
--------- ----------- ------- --------- ------- --------- ------- -----------
5 $ 49 9 $ 96 83 $ 827 170 $ 1,653
========= =========== ======= =========== ======= ========= ======= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 115
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
----------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold.......................................................... 310,207 $ 3,208,388 647,531 $ 6,585,701
Issued in exchange for Common Trust Shares of Nations Common
Trust:
Texas Municipal Fund (Note 9)............................... 34,435,428 342,469,307 -- --
Issued as reinvestment of dividends........................... 130 1,363 -- --
Redeemed...................................................... (437,800) (4,534,812) (877,019) (8,983,909)
---------- ------------ ---------- -----------
Net increase/(decrease)....................................... 34,307,965 $341,144,246 (229,488) $(2,398,208)
========== ============ ========== ===========
INVESTOR A SHARES:
Sold.......................................................... 29,830 $ 310,562 19,906 $ 202,395
Issued as reinvestment of dividends........................... 1,055 10,927 1,811 18,394
Redeemed...................................................... (1,222) (12,401) (10,885) (111,324)
---------- ------------ ---------- -----------
Net increase/(decrease)....................................... 29,663 $ 309,088 10,832 $ 109,465
========== ============ ========== ===========
INVESTOR B SHARES:
Sold.......................................................... 3,274 $ 33,497 1,216 $ 12,460
Issued as reinvestment of dividends........................... 2,786 28,832 6,080 62,109
Redeemed...................................................... (13,720) (140,132) (71,626) (727,911)
---------- ------------ ---------- -----------
Net decrease.................................................. (7,660) $ (77,803) (64,330) $ (653,342)
========== ============ ========== ===========
INVESTOR C SHARES:
Sold.......................................................... -- $ -- -- $ --
Issued as reinvestment of dividends........................... 1,187 12,288 2,321 23,725
Redeemed...................................................... -- -- --
---------- ------------ ---------- -----------
Net increase/(decrease)....................................... 1,187 $ 12,288 2,321 $ 23,725
========== ============ ========== ===========
</TABLE>
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
----------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold.......................................................... 314,603 $ 3,039,892 445,108 $ 4,182,650
Issued as reinvestment of dividends........................... -- -- -- --
Redeemed...................................................... (72,027) (693,013) (187,420) (1,753,948)
-------- ----------- ------- -----------
Net increase/(decrease)....................................... 242,576 $ 2,346,879 257,688 $ 2,428,702
======== =========== ======= ===========
INVESTOR A SHARES:
Sold.......................................................... 11,586 $ 111,501 36,304 $ 342,983
Issued as reinvestment of dividends........................... 1,317 12,712 2,474 23,323
Redeemed...................................................... (4,941) (47,326) (32,024) (302,282)
-------- ----------- ------- -----------
Net increase.................................................. 7,962 $ 76,887 6,754 $ 64,024
======== =========== ======= ===========
INVESTOR B SHARES:
Sold.......................................................... 16,469 $ 157,376 20,853 $ 197,062
Issued as reinvestment of dividends........................... 19,268 185,791 43,741 413,677
Redeemed...................................................... (75,214) (720,739) (277,624) (2,619,581)
-------- ----------- ------- ----------
Net decrease.................................................. (39,477) $ (377,572) (213,030) $(2,008,842)
======== =========== ======= ===========
INVESTOR C SHARES:
Sold.......................................................... -- $ -- -- $ --
Issued as reinvestment of dividends........................... 105 1,013 216 2,032
Redeemed...................................................... -- -- -- --
-------- ----------- ------- -----------
Net increase.................................................. 105 $ 1,013 216 $ 2,032
======== =========== ======= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 116
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS MUNICIPAL BOND FUND VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997 (UNAUDITED) MARCH 31, 1997
----------------------- ----------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
139,140 $ 1,356,300 250,760 $ 2,375,276 1,304,511 $ 14,046,161 2,958,562 $ 31,620,975
-- -- -- -- -- -- -- --
6 60 12 118 6,067 65,249 7,432 79,415
(63,472) (619,122) (193,829) (1,864,801) (1,282,969) (13,813,141) (3,464,921) (36,957,080)
-------- ----------- -------- ----------- ---------- ------------ ---------- ------------
75,674 $ 737,238 56,943 $ 510,593 27,609 $ 298,269 (498,927) $ (5,256,690)
======== =========== ======== =========== ========== ============ ========== ============
2,885 $ 28,487 6,766 $ 62,991 197,325 $ 2,124,288 359,732 $ 3,852,993
321 3,119 599 5,725 72,674 782,345 182,885 1,952,616
(625) (6,014) (1,598) (15,001) (678,008) (7,233,322) (1,634,419) (17,445,789)
-------- ----------- -------- ----------- ---------- ------------ ---------- ------------
2,581 $ 25,592 5,767 $ 53,715 (408,009) $ (4,326,689) (1,091,802) $(11,640,180)
======== =========== ======== =========== ========== ============ ========== ============
2,373 $ 23,207 8,632 $ 82,485 6,271 $ 66,349 8,035 $ 85,353
13,060 127,074 30,093 286,900 12,871 138,543 29,858 318,831
(138,517) (1,341,972) (222,374) (2,119,387) (83,712) (898,942) (160,347) (1,715,511)
-------- ----------- -------- ----------- ---------- ------------ ---------- ------------
(123,084) $(1,191,691) (183,649) $(1,750,002) (64,570) $ (694,050) (122,454) $ (1,311,327)
======== =========== ======== =========== ========== ============ ========== ============
28 $ 270 -- $ -- 1,158 $ 12,400 8,421 $ 89,965
138 1,348 337 3,215 8,136 87,563 18,059 192,864
-- -- -- -- (74,099) (797,773) (62,436) (667,180)
-------- ----------- -------- ----------- ---------- ------------ ---------- ------------
166 $ 1,618 337 $ 3,215 (64,805) $ (697,810) (35,956) $ (384,351)
======== =========== ======== =========== ========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE> 117
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS SHORT-TERM MUNICIPAL INCOME FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)... $ 9.95 $ 0.21 $ 0.07 $0.28 $(0.21) --
Year ended 03/31/1997..................... 9.98 0.44 (0.03) 0.41 (0.44) --
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 09/30/1997 (unaudited)... $ 9.95 $ 0.20 $ 0.07 $0.27 $(0.20) --
Year ended 03/31/1997..................... 9.98 0.42 (0.03) 0.39 (0.42) --
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 B SHARES
Six months ended 09/30/1997 (unaudited)... $ 9.95 $ 0.19 $ 0.07 $0.26 $(0.19) --
Year ended 03/31/1997..................... 9.98 0.40 (0.03) 0.37 (0.40) --
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) --
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)... $ 9.95 $ 0.20 $ 0.07 $0.27 $(0.20) --
Year ended 03/31/1997..................... 9.98 0.40 (0.03) 0.37 (0.40) --
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)#
</TABLE>
- ---------------
* Nations Short-Term Municipal Income Fund's Primary A, Investor A, Investor B
and Investor C Shares commenced operations on October 7, 1993, November 2,
1993, October 12, 1993 and May 19, 1994, 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.
114
<PAGE> 118
NATIONS FUNDS
- --------------------------------------------------------------------------------
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
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ (0.21) $ 10.02 2.97% $ 70,114 0.40%+(a) 4.19%+
(0.44) 9.95 4.15 61,072 0.40(a) 4.36
(0.15) 9.98 0.96 48,511 0.40+(a) 4.37+
(0.44) 10.03 8.16 49,961 0.45(a) 4.38
(0.38) 9.69 1.09 33,488 0.34(a) 3.83
(0.05) 9.96 0.06 5,999 0.09+ 3.16+
$ (0.20) $ 10.02 2.87% $ 32,142 0.60%+(a) 3.99%+
(0.42) 9.95 3.96 8,417 0.60(a) 4.16
(0.14) 9.98 0.90 4,599 0.60+(a) 4.17+
(0.42) 10.03 7.95 3,741 0.65(a) 4.18
(0.36) 9.69 0.90 217 0.52(a) 3.65
(0.03) 9.96 0.06 731 0.24+ 3.01+
$ (0.19) $ 10.02 2.79% $ 14,124 0.75%+(a) 3.84%+
(0.40) 9.95 3.78 10,655 0.75(a) 4.01
(0.13) 9.98 0.84 13,859 0.75+(a) 4.02+
(0.40) 10.03 7.78 9,803 0.80(a) 4.03
(0.34) 9.69 0.73 13,421 0.69(a) 3.48
(0.04) 9.96 (0.02) 5,863 0.44+ 2.81+
$ (0.20) $ 10.02 2.81% $ 234 0.75%+(a) 3.84%+
(0.40) 9.95 3.79 1,080 0.75(a) 4.01
(0.14) 9.98 0.85 2,072 0.72+(a) 4.05+
(0.42) 10.03 7.95 1,953 0.70(a) 4.13
(0.19) 9.69 0.45 323 0.59+(a) 3.58+
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------
RATIO OF
OPERATING
PORTFOLIO EXPENSES TO NET INVESTMENT
TURNOVER AVERAGE NET INCOME
RATE ASSETS PER SHARE
------------------------------------------------
<S> <C> <C>
51% 0.80%+ $ 0.19
80 0.84 0.39
16 0.86+ 0.13
82 0.93 0.39
57 0.80 0.33
45 1.04+ 0.04
51% 1.00%+ $ 0.18
80 1.04 0.37
16 1.06+ 0.12
82 1.13 0.37
57 0.99 0.33
45 1.19+ 0.02
51% 1.15%+ $ 0.17
80 1.19 0.35
16 1.21+ 0.11
82 1.28 0.35
57 1.15 0.31
45 1.39+ 0.04
51% 1.15%+ $ 0.18
80 1.19 0.35
16 1.18+ 0.12
82 1.18 0.37
57 1.05+ 0.18
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE> 119
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............ $ 10.01 $ 0.24 $ 0.27 $ 0.51 $(0.24) -- --
Year ended 03/31/1997.... 10.03 0.48 (0.02) 0.46 (0.48) -- --
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 09/30/1997
(unaudited)............ $ 10.01 $ 0.23 $ 0.27 $ 0.50 $(0.23) -- --
Year ended 03/31/1997.... 10.03 0.46 (0.02) 0.44 (0.46) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............ $ 10.01 $ 0.21 $ 0.27 $ 0.48 $(0.21) -- --
Year ended 03/31/1997.... 10.03 0.43 (0.02) 0.41 (0.43) -- --
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)
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............ $ 10.01 $ 0.21 $ 0.27 $ 0.48 $(0.21) -- --
Year ended 03/31/1997.... 10.03 0.43 (0.02) 0.41 (0.43) -- --
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) -- --
</TABLE>
- ---------------
* Nations Intermediate Municipal Bond Fund's Primary A, Investor A, Investor B
and Investor C Shares commenced operations on July 30, 1993, August 17,
1993, December 2, 1993 and November 3, 1994, 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.
116
<PAGE> 120
NATIONS FUNDS
- --------------------------------------------------------------------------------
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>
$ (0.24) $ 10.28 5.12% $858,007 0.50%+(a) 4.65%+ 30%
(0.48) 10.01 4.63 108,204 0.50(a) 4.74 21
(0.16) 10.03 0.20 77,423 0.50+(a) 4.75+ 4
(0.48) 10.17 15.60 73,897 0.45(a) 4.91 31
(0.46) 9.24 (4.25) 38,055 0.35(a) 4.59 51
(0.14) 10.11 2.46 28,335 0.24+ 4.07+ 23
$ (0.23) $ 10.28 5.01% $ 3,333 0.70%+(a) 4.45%+ 30%
(0.46) 10.01 4.42 2,067 0.70(a) 4.54 21
(0.15) 10.03 0.13 1,500 0.70+(a) 4.55+ 4
(0.47) 10.17 15.38 1,249 0.65(a) 4.71 31
(0.43) 9.24 (4.48) 172 0.53(a) 4.41 51
(0.12) 10.11 1.28 68 0.39+ 3.92+ 23
$ (0.21) $ 10.28 4.85% $ 1,958 1.10%+(a) 4.05%+ 30%
(0.43) 10.01 4.12 1,481 1.00(a) 4.24 21
(0.14) 10.03 0.03 1,623 1.00+(a) 4.25+ 4
(0.43) 10.17 15.02 1,352 0.95(a) 4.41 31
(0.40) 9.24 (5.00) 943 0.85+(a) 4.09+ 51
$ (0.21) $ 10.28 4.81% $ 684 1.10%+(a) 4.05%+ 30%
(0.43) 10.01 4.11 756 1.00(a) 4.24 21
(0.14) 10.03 0.03 716 1.00+(a) 4.25+ 4
(0.43) 10.17 14.96 359 0.95(a) 4.41 31
(0.03) 9.24 (0.52) 2 0.85+(a) 4.09+ 51
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------
RATIO OF
OPERATING
EXPENSE TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
- -------------------------------
<S> <C>
0.70% + $ 0.23
0.81 0.44
0.83% + 0.15
0.84 0.45
0.88 0.40
0.96 + 0.12
0.90% + $ 0.22
1.01 0.42
1.03% + 0.14
1.04 0.44
1.06 0.38
1.11 + 0.10
1.30% + $ 0.20
1.31 0.39
1.33 + 0.13
1.34 0.40
1.38 + 0.34
1.30% + $ 0.20
1.31 0.39
1.33 + 0.13
1.34 0.40
1.38 + 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE> 121
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 09/30/1997
(unaudited)............... $ 10.89 $ 0.29 $ 0.45 $ 0.74 $(0.29) -- --
Year ended 03/31/1997....... 10.84 0.59 0.05 0.64 (0.59) -- --
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 09/30/1997
(unaudited)............... $ 10.89 $ 0.28 $ 0.45 $ 0.73 $(0.28) -- --
Year ended 03/31/1997....... 10.84 0.57 0.05 0.62 (0.57) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.89 $ 0.25 $ 0.45 $ 0.70 $(0.25) -- --
Year ended 03/31/1997....... 10.84 0.51 0.05 0.56 (0.51) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.89 $ 0.26 $ 0.45 $ 0.71 $(0.26) -- --
Year ended 03/31/1997....... 10.84 0.53 0.05 0.58 (0.53) -- --
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) -- --
</TABLE>
- ---------------
* Nations Municipal Income Fund's Primary A, Investor A, Investor B and
Investor C Shares commenced operations on February 1, 1991, February 1,
1991, June 7, 1993 and June 17, 1992, 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.
118
<PAGE> 122
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
RATIO OF EXPENSES TO RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO ASSETS INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.29) $ 11.34 6.84% $443,882 0.60%+ (a) 5.13%+ 32%
(0.59) 10.89 6.03 77,260 0.60 (a) 5.41 25
(0.20) 10.84 (0.41) 68,022 0.60+ (a) 5.35+ 4
(0.59) 11.08 21.55 68,836 0.60 (a) 5.63 49
(0.82) 9.64 (8.17) 59,279 0.61 0.62% 5.42 63
(0.63) 11.33 12.54 88,386 0.52 -- 5.24 48
(0.60) 10.65 9.97+++ 62,387 0.43 -- 5.51 19
(0.52) 10.25 7.87+++ 23,631 0.20+ -- 6.07+ 54
$ (0.28) $ 11.34 6.73% $ 15,219 0.80%+ (a) 4.93%+ 32%
(0.57) 10.89 5.82 15,075 0.80 (a) 5.21 25
(0.19) 10.84 (0.47) 26,085 0.80+ (a) 5.15+ 4
(0.57) 11.08 21.31 27,963 0.80 (a) 5.43 49
(0.80) 9.64 (8.34) 23,754 0.79 0.80% 5.24 63
(0.61) 11.33 12.37 28,415 0.60 -- 5.09 48
(0.59) 10.65 9.88+++ 21,056 0.52 -- 5.42 19
(0.52) 10.25 7.87+++ 7,234 0.20+ -- 6.07+ 54
$ (0.25) $ 11.34 6.44% $ 13,891 1.38%+ (a) 4.35%+ 32%
(0.51) 10.89 5.24 14,615 1.35 (a) 4.66 25
(0.17) 10.84 (0.66) 16,870 1.35+ (a) 4.60+ 4
(0.51) 11.08 20.65 18,165 1.35 (a) 4.88 49
(0.74) 9.64 (8.86) 17,101 1.36 1.37% 4.67 63
(0.23) 11.33 3.89 15,133 1.27+ -- 4.49+ 48
$ 0.26 $ 11.34 6.52% $ 3,026 1.22%+ (a) 4.51%+ 32%
(0.53) 10.89 5.50 1,713 1.10 (a) 4.91 25
(0.18) 10.84 (0.60) 2,173 1.16+ (a) 4.79+ 4
(0.51) 11.08 20.65 2,268 1.35 (a) 4.88 49
(0.74) 9.64 (8.86) 3,064 1.36 1.37% 4.67 63
(0.54) 11.33 11.69 6,331 1.27 -- 4.49 48
(0.21) 10.65 3.63+++ 3,774 1.21+ -- 4.36+ 19
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
0.82%+ $ 0.28
0.91 0.56
0.91+ 0.19
0.88 0.56
0.90 0.54
0.84 0.55
0.90 0.54
0.88+ 0.45
1.02%+ $ 0.27
1.11 0.54
1.11+ 0.18
1.08 0.54
1.08 0.52
0.99 0.53
0.99 0.53
0.88+ 0.45
1.60%+ $ 0.24
1.66 0.48
1.66+ 0.16
1.63 0.48
1.65 0.46
1.59+ 0.22
1.44%+ $ 0.25
1.41 0.50
1.47+ 0.17
1.63 0.48
1.65 0.46
1.59 0.46
1.61+ 0.19
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE> 123
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.40 $ 0.25 $ 0.30 $ 0.55 $(0.25) -- --
Year ended 03/31/1997....... 10.46 0.49 (0.06) 0.43 (0.49) -- --
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 09/30/1997
(unaudited)............... $ 10.40 $ 0.24 $ 0.30 $ 0.54 $(0.24) -- --
Year ended 03/31/1997....... 10.46 0.47 (0.06) 0.41 (0.47) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.40 $ 0.22 $ 0.30 $ 0.52 $(0.22) -- --
Year ended 03/31/1997....... 10.46 0.44 (0.06) 0.38 (0.44) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.40 $ 0.22 $ 0.30 $ 0.52 $(0.22) -- --
Year ended 03/31/1997....... 10.46 0.44 (0.06) 0.38 (0.44) -- --
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) -- --
</TABLE>
- ---------------
* Nations Florida Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor B and Investor C Shares commenced operations on December 11, 1992,
December 14, 1992, June 7, 1993 and December 17, 1992, 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.
120
<PAGE> 124
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
RATIO OF EXPENSES TO RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO ASSETS INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.25) $ 10.70 5.32% $199,722 0.50%+ (a) 4.70%+ 12%
(0.49) 10.40 4.22 51,748 0.50 (a) 4.72 16
(0.17) 10.46 (0.06) 44,988 0.50+ (a) 4.66+ 18
(0.48) 10.63 15.92 44,038 0.55 (a) 4.70 27
(0.46) 9.61 (4.26) 42,717 0.55 (a) 4.44 34
(0.44) 10.50 9.50 41,489 0.44+ -- 4.28+ 15
$ (0.24) $ 10.70 5.22% $ 7,246 0.70%+ (a) 4.50%+ 12%
(0.47) 10.40 4.01 2,142 0.70 (a) 4.52 16
(0.16) 10.46 (0.13) 2,029 0.70+ (a) 4.46+ 18
(0.46) 10.63 15.68 2,292 0.75 (a) 4.50 27
(0.44) 9.61 (4.43) 2,114 0.73 (a) 4.26 34
(0.42) 10.50 9.44 2,261 0.59+ -- 4.13+ 15
$ (0.22) $ 10.70 5.01% $ 3,425 1.10%+ (a) 4.10%+ 12%
(0.44) 10.40 3.70 3,488 1.00 (a) 4.22 16
(0.15) 10.46 (0.23) 4,001 1.00+ (a) 4.16+ 18
(0.43) 10.63 15.34 4,775 1.05 (a) 4.20 27
(0.41) 9.61 (4.73) 4,691 1.05 (a) 3.94 34
(0.18) 10.50 3.53 3,328 0.94+ -- 3.78+ 15
$ (0.22) $ 10.70 5.01% $ 120 1.10%+ (a) 4.10%+ 12%
(0.44) 10.40 3.71 272 1.00 (a) 4.22 16
(0.15) 10.46 (0.23) 275 1.00+ (a) 4.16+ 18
(0.43) 10.63 15.34 277 1.05 (a) 4.20 27
(0.40) 9.61 (4.81) 614 1.13 (a) 3.86 34
(0.35) 10.50 8.80 684 1.19+ -- 3.53+ 15
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
0.74%+ $ 0.24
0.81 0.46
0.86+ 0.15
0.81 0.46
0.76 0.43
0.80+ 0.40
0.94%+ $ 0.23
1.01 0.44
1.06+ 0.14
1.01 0.44
0.94 0.41
0.95+ 0.39
1.34%+ $ 0.21
1.31 0.41
1.36+ 0.13
1.31 0.41
1.26 0.38
1.30+ 0.17
1.34%+ $ 0.21
1.31 0.41
1.36+ 0.13
1.31 0.41
1.34 0.37
1.55+ 0.31
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE> 125
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS FLORIDA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.48 $ 0.24 $ 0.38 $ 0.62 $(0.24)
Year ended 03/31/1997....................................... 9.47 0.48 0.01 0.49 (0.48)
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 09/30/1997 (unaudited)..................... $ 9.48 $ 0.23 $ 0.38 $ 0.61 $(0.23)
Year ended 03/31/1997....................................... 9.47 0.46 0.01 0.47 (0.46)
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 B SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.48 $ 0.20 $ 0.38 $ 0.58 $(0.20)
Year ended 03/31/1997....................................... 9.47 0.41 0.01 0.42 (0.41)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.48 $ 0.21 $ 0.38 $ 0.59 $(0.21)
Year ended 03/31/1997....................................... 9.47 0.44 0.01 0.45 (0.44)
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)
</TABLE>
- ---------------
* Nations Florida Municipal Bond Fund's Primary A, Investor A, Investor B and
Investor C Shares commenced operations on December 13, 1993, December 10,
1993, October 22, 1993 and November 3, 1994, 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.
122
<PAGE> 126
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
RATIO OF EXPENSES TO RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO ASSETS INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.24) $ 9.86 6.58% $ 26,524 0.60%+ (a) 4.90%+ 10%
(0.48) 9.48 5.29 16,702 0.60 (a) 5.07 23
(0.16) 9.47 (1.33) 13,044 0.60+ (a) 5.03+ 7
(0.51) 9.76 22.69 11,219 0.39 (a) 5.44 13
(0.49) 8.40 (10.70) 4,258 0.21+ (a) 5.55+ 46
$ (0.23) $ 9.86 6.48% 1,945 0.80%+ (a) 4.70%+ 10%
(0.46) 9.48 5.09 1,781 0.80 (a) 4.87 23
(0.15) 9.47 (1.40) 1,836 0.80+ (a) 4.83+ 7
(0.49) 9.76 22.45 1,787 0.59 (a) 5.24 13
(0.47) 8.40 (11.35) 1,024 0.39+ (a) 5.37+ 46
$ (0.20) $ 9.86 6.17% 18,205 1.38%+ (a) 4.12%+ 10%
(0.41) 9.48 4.52 19,751 1.35 (a) 4.32 23
(0.14) 9.47 (1.58) 23,947 1.35+ (a) 4.28+ 7
(0.44) 9.76 21.78 25,398 1.14 (a) 4.69 13
(0.45) 8.40 (9.37) 19,868 0.96 (a) 4.80 46
(0.03) 9.73 (2.35) 11,434 0.68+ -- 3.29+ 0
$ (0.21) $ 9.86 6.26% 42 1.22%+ (a) 4.28%+ 10%
(0.44) 9.48 4.78 40 1.10 (a) 4.57 23
(0.14) 9.47 (1.52) 38 1.15+ (a) 4.48+ 7
(0.44) 9.76 21.80 38 1.14 (a) 4.69 13
(0.03) 8.40 (0.43) 2 0.96+ (a) 4.80+ 46
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
0.90%+ $ 0.23
0.93 0.45
0.96+ 0.15
0.95 0.46
0.91+ 0.43
1.10%+ $ 0.22
1.13 0.43
1.16+ 0.14
1.15 0.44
1.09+ 0.42
1.68%+ $ 0.19
1.68 0.38
1.71+ 0.13
1.70 0.39
1.66 0.38
1.84+ 0.02
1.52%+ $ 0.20
1.43 0.41
1.51+ 0.13
1.70 0.39
1.66+ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE> 127
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 GEORGIA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.58 $ 0.25 $ 0.31 $ 0.56 $(0.25) -- --
Year ended 03/31/1997....... 10.63 0.50 (0.05) 0.45 (0.50) -- --
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 09/30/1997
(unaudited)............... $ 10.58 $ 0.24 $ 0.31 $ 0.55 $(0.24) -- --
Year ended 03/31/1997....... 10.63 0.48 (0.05) 0.43 (0.48) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.58 $ 0.21 $ 0.31 $ 0.52 $(0.21) -- --
Year ended 03/31/1997....... 10.63 0.45 (0.05) 0.40 (0.45) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.58 $ 0.21 $ 0.31 $ 0.52 $(0.21) -- --
Year ended 03/31/1997....... 10.63 0.45 (0.05) 0.40 (0.45) -- --
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) -- --
</TABLE>
- ---------------
* Nations Georgia Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor B and Investor C Shares commenced operations on March 1, 1992, May
4, 1992, June 7, 1993 and June 17, 1992, 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.
124
<PAGE> 128
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
RATIO OF EXPENSES TO RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO ASSETS INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.25) $ 10.89 5.31% $125,613 0.50%+ (a) 4.53%+ 22%
(0.50) 10.58 4.33 43,470 0.50 (a) 4.72 9
(0.17) 10.63 (0.13) 38,222 0.50+ (a) 4.67+ 3
(0.50) 10.81 15.42 40,383 0.55 (a) 4.76 17
(0.51) 9.82 (4.70) 33,111 0.54 0.55% 4.74 22
(0.53) 10.82 10.43 30,738 0.46 -- 4.57 6
(0.41) 10.29 7.07+++ 20,584 0.20+ -- 5.25+ 12
$ (0.24) $ 10.89 5.20% $ 9,506 0.70%+ (a) 4.33%+ 22%
(0.48) 10.58 4.12 8,810 0.70 (a) 4.52 9
(0.16) 10.63 (0.19) 8,625 0.70+ (a) 4.47+ 3
(0.48) 10.81 15.20 9,175 0.75 (a) 4.56 17
(0.49) 9.82 (4.87) 10,401 0.72 0.73% 4.56 22
(0.51) 10.82 10.37 16,752 0.61 -- 4.42 6
(0.30) 10.28 6.12+++ 3,809 0.34+ -- 5.01+ 12
$ (0.21) $ 10.89 4.99% $ 7,605 1.10%+ (a) 3.93%+ 22%
(0.45) 10.58 3.81 7,601 1.00 (a) 4.22 9
(0.15) 10.63 (0.29) 8,098 1.00+ (a) 4.17+ 3
(0.45) 10.81 14.85 8,160 1.05 (a) 4.26 17
(0.46) 9.82 (5.17) 7,269 1.04 1.05% 4.24 22
(0.20) 10.82 3.86 4,506 0.96+ -- 4.07+ 6
$ (0.21) $ 10.89 4.99% $ 1,785 1.10%+ (a) 3.93%+ 22%
(0.45) 10.58 3.81 1,983 1.00 (a) 4.22 9
(0.15) 10.63 (0.29) 2,445 1.00+ (a) 4.17+ 3
(0.45) 10.81 14.85 2,606 1.05 (a) 4.26 17
(0.45) 9.82 (5.25) 2,397 1.12 1.13% 4.16 22
(0.45) 10.82 9.61 2,990 1.21 -- 3.82 6
(0.20) 10.29 3.82+++ 992 0.91+ -- 4.21+ 12
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
0.74%+ $ 0.23
0.80 0.47
0.83+ 0.16
0.80 0.47
0.75 0.47
0.77 0.46
0.77+ 0.37
0.94%+ $ 0.22
1.00 0.45
1.03+ 0.15
1.00 0.45
0.93 0.45
0.92 0.45
0.91+ 0.27
1.34%+ $ 0.19
1.30 0.42
1.33+ 0.14
1.30 0.42
1.25 0.42
1.27+ 0.18
1.34%+ $ 0.19
1.30 0.42
1.33+ 0.14
1.30 0.42
1.33 0.41
1.52 0.39
1.72+ 0.16
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE> 129
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS GEORGIA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.50 $ 0.24 $ 0.35 $ 0.59 $(0.24)
Year ended 03/31/1997....................................... 9.48 0.47 0.02 0.49 (0.47)
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 09/30/1997 (unaudited)..................... $9.50 $ 0.23 $ 0.35 $ 0.58 $(0.23)
Year ended 03/31/1997....................................... 9.48 0.45 0.02 0.47 (0.45)
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 B SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.50 $ 0.20 $ 0.35 $ 0.55 $(0.20)
Year ended 03/31/1997....................................... 9.48 0.40 0.02 0.42 (0.40)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.50 $ 0.21 $ 0.35 $ 0.56 $(0.21)
Year ended 03/31/1997....................................... 9.48 0.42 0.02 0.44 (0.42)
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)
</TABLE>
- ---------------
* Nations Georgia Municipal Bond Fund's Primary A, Investor A, Investor B and
Investor C Shares commenced operations on January 13, 1994, December 30,
1993, October 21, 1993 and November 3, 1994, 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.
126
<PAGE> 130
NATIONS FUNDS
- --------------------------------------------------------------------------------
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
- ---------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ (0.24) $9.85 6.23% $ 6,165 0.60%+(a) 4.87%+ 27%
(0.47) 9.50 5.29 5,550 0.60(a) 4.96 19
(0.16) 9.48 (0.84) 2,068 0.60+(a) 4.96+ 7
(0.51) 9.72 22.48 2,628 0.40(a) 5.42 26
(0.46) 8.38 (12.07) 232 0.21+(a) 5.60+ 35
$ (0.23) $9.85 6.13% $ 435 0.80%+(a) 4.67%+ 27%
(0.45) 9.50 5.05 208 0.80(a) 4.76 19
(0.14) 9.48 (1.08) 7 0.80+(a) 4.76+ 7
(0.49) 9.72 22.25 7 0.60(a) 5.22 26
(0.47) 8.38 (11.71) 6 0.39+(a) 5.42+ 35
$ (0.20) $9.85 5.82% $ 9,714 1.38%+(a) 4.09%+ 27%
(0.40) 9.50 4.50 10,182 1.35(a) 4.21 19
(0.14) 9.48 (1.09) 12,254 1.35+(a) 4.21+ 7
(0.44) 9.72 21.58 13,017 1.15(a) 4.67 26
(0.45) 8.38 (10.28) 9,500 0.96(a) 4.85 35
(0.04) 9.81 (1.49) 4,820 0.70+ 3.63+ 30
$ (0.21) $9.85 5.91% $ 26 1.22%+(a) 4.25%+ 27%
(0.42) 9.50 4.77 72 1.10(a) 4.46 19
(0.14) 9.48 (1.03) 69 1.16+(a) 4.40+ 7
(0.44) 9.72 21.59 69 1.15(a) 4.67 26
(0.03) 8.38 (0.44) 2 0.96+(a) 4.85+ 35
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
1.04%+ $ 0.22
1.05 0.43
1.14+ 0.14
1.09 0.44
1.04+ 0.39
1.24%+ $ 0.21
1.25 0.41
1.34+ 0.12
1.29 0.42
1.22+ 0.40
1.83%+ $ 0.18
1.80 0.36
1.89+ 0.12
1.84 0.37
1.79 0.38
2.08+ 0.03
1.67%+ $ 0.19
1.55 0.38
1.70+ 0.12
1.84 0.37
1.79+ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE> 131
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 MARYLAND INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)................ $ 10.70 $ 0.25 $ 0.27 $ 0.52 $(0.25) -- --
Year ended 03/31/1997........ 10.80 0.51 (0.10) 0.41 (0.51) -- --
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 09/30/1997
(unaudited)................ $ 10.70 $ 0.24 $ 0.27 $ 0.51 $(0.24) -- --
Year ended 03/31/1997........ 10.80 0.48 (0.10) 0.38 (0.48) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)................ $ 10.70 $ 0.22 $ 0.27 $ 0.49 $(0.22) -- --
Year ended 03/31/1997........ 10.80 0.45 (0.10) 0.35 (0.45) -- --
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) --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)................ $ 10.70 $ 0.22 $ 0.27 $ 0.49 $(0.22) -- --
Year ended 03/31/1997........ 10.80 0.45 (0.10) 0.35 (0.45) -- --
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) -- --
</TABLE>
- ---------------
* Nations Maryland Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor B and Investor C Shares commenced operations on September 1, 1990,
September 1, 1990, June 8, 1993 and June 17, 1992, 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.
128
<PAGE> 132
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
-------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS RATE ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.25) $ 10.97 4.93% $ 73,251 0.50%+(a) 4.65%+ 7% 0.80%+
(0.51) 10.70 3.83 63,549 0.50(a) 4.70 10 0.78
(0.17) 10.80 0.16 61,337 0.50+(a) 4.62+ 4 0.81+
(0.54) 10.95 15.16 62,460 0.55(a) 4.76 11 0.80
(0.60) 10.00 (4.64) 61,349 0.53(a) 4.73 22 0.73
(0.59) 11.09 9.11 61,552 0.49 4.73 26 0.73
(0.58) 10.72 8.41+++ 48,192 0.39 5.12 38 0.78
(0.61) 10.44 8.46+++ 31,088 0.20 5.76 26 0.71
(0.16) 10.21 3.72+++ 11,087 0.21+ 6.12+ 49 0.84+
$ (0.24) $ 10.97 4.83% $ 15,338 0.70%+(a) 4.45%+ 7% 1.00%+
(0.48) 10.70 3.62 14,988 0.70(a) 4.50 10 0.98
(0.16) 10.80 0.09 19,456 0.70+(a) 4.42+ 4 1.01+
(0.51) 10.95 14.94 21,208 0.75(a) 4.56 11 1.00
(0.58) 10.00 (4.82) 22,145 0.71(a) 4.55 22 0.91
(0.58) 11.09 8.96 22,144 0.64 4.58 26 0.88
(0.57) 10.72 8.32+++ 20,092 0.48 4.98 38 0.87
(0.61) 10.44 8.46+++ 9,934 0.20 5.76 26 0.71
(0.16) 10.21 3.72+++ 2,228 0.21+ 6.12+ 49 0.84+
$ (0.22) $ 10.97 4.62% $ 4,209 1.10%+(a) 4.05%+ 7% 1.40%+
(0.45) 10.70 3.31 4,299 1.00(a) 4.20 10 1.28
(0.15) 10.80 (0.01) 4,500 1.00+(a) 4.12+ 4 1.31+
(0.48) 10.95 14.59 4,485 1.05(a) 4.26 11 1.30
(0.55) 10.00 (5.12) 4,368 1.03(a) 4.23 22 1.23
(0.23) 11.09 3.53 3,234 0.99+ 4.23+ 26 1.23+
$ (0.22) $ 10.97 4.62% $ 1,772 1.10%+(a) 4.05%+ 7% 1.40%+
(0.45) 10.70 3.31 2,017 1.00(a) 4.20 10 1.28
(0.15) 10.80 (0.01) 2,900 1.00+(a) 4.12+ 4 1.31+
(0.48) 10.95 14.59 2,808 1.05(a) 4.26 11 1.30
(0.54) 10.00 (5.20) 2,570 1.11(a) 4.15 22 1.31
(0.47) 11.09 8.30 4,424 1.24 3.98 26 1.48
(0.19) 10.72 3.13+++ 1,796 1.16+ 3.88+ 38 1.44+
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
-----------
NET INVESTMENT
INCOME
PER SHARE
--------------
<S> <C>
$ 0.24
0.48
0.16
0.48
0.48
0.49
0.51
0.55
0.13
$ 0.23
0.45
0.15
0.45
0.46
0.48
0.50
0.55
0.13
$ 0.21
0.42
0.14
0.42
0.43
0.20
$ 0.20
0.42
0.14
0.42
0.42
0.38
0.18
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE> 133
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS MARYLAND MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.41 $ 0.23 $ 0.37 $ 0.60 $(0.23)
Year ended 03/31/1997....................................... 9.39 0.46 0.02 0.48 (0.46)
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 09/30/1997 (unaudited)..................... $9.41 $ 0.22 $ 0.37 $ 0.59 $(0.22)
Year ended 03/31/1997....................................... 9.39 0.44 0.02 0.46 (0.44)
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 B SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.41 $ 0.20 $ 0.37 $ 0.57 $(0.20)
Year ended 03/31/1997....................................... 9.39 0.39 0.02 0.41 (0.39)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.41 $ 0.19 $ 0.37 $ 0.56 $(0.19)
Year ended 03/31/1997....................................... 9.39 0.42 0.02 0.44 (0.42)
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)
</TABLE>
- ---------------
* Nations Maryland Municipal Bond Fund's Primary A, Investor A, Investor B and
Investor C Shares commenced operations on September 20, 1994, November 4,
1993, October 21, 1993 and November 3, 1994, 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.
130
<PAGE> 134
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
-----------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS RATE ASSETS
- ------------------------------------------------------------------------------------------------------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.23) $9.78 6.39% $ 8,209 0.60%+(a) 4.68%+ 16% 1.10%+
(0.46) 9.41 5.20 4,596 0.60 4.88 18 1.12
(0.15) 9.39 (0.95) 2,788 0.60+ 4.72+ 7 1.23+
(0.48) 9.63 21.23 2,595 0.40 5.14 11 1.26
(0.11) 8.37 (4.89) 39 0.21+(a) 5.48+ 39 1.30+
$ (0.22) $9.78 6.29% $ 1,766 0.80%+(a) 4.48%+ 16% 1.30%+
(0.44) 9.41 4.99 1,409 0.80 4.68 18 1.32
(0.14) 9.39 (1.01) 1,086 0.80+ 4.52+ 7 1.43+
(0.46) 9.63 20.99 1,031 0.60 4.94 11 1.46
(0.49) 8.37 (9.59) 9 0.39(a) 5.30 39 1.48
(0.03) 9.77 0.05 6 0.13+ 3.97+ 1 1.76+
$ (0.20) $9.78 5.98% $ 8,191 1.38%+(a) 3.90%+ 16% 1.88%+
(0.39) 9.41 4.42 8,099 1.35 4.13 18 1.87
(0.13) 9.39 (1.19) 9,662 1.35+ 3.97+ 7 1.98+
(0.41) 9.63 20.33 10,002 1.15 4.39 11 2.01
(0.44) 8.37 (10.11) 4,819 0.96(a) 4.73 39 2.05
(0.04) 9.77 (1.94) 3,048 0.73+ 3.37+ 1 2.36+
$ (0.19) $9.78 6.10% $ 3 1.22%+(a) 4.06%+ 16% 1.72%+
(0.42) 9.41 4.73 2 1.10 4.38 18 1.62
(0.13) 9.39 (1.13) 2 1.16+ 4.16+ 7 1.79+
(0.41) 9.63 20.29 2 1.15 4.39 11 2.01
(0.03) 8.37 (0.45) 2 0.96+(a) 4.73+ 39 2.05+
<CAPTION>
NET INVESTMENT
INCOME
PER SHARE
--------------
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
<S> <C>
$ 0.21
0.41
0.13
0.40
0.09
$ 0.20
0.39
0.12
0.38
0.41
0.02
$ 0.18
0.34
0.11
0.33
0.35
0.02
$ 0.17
0.37
0.11
0.33
0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
131
<PAGE> 135
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............... $10.34 $ 0.24 $ 0.30 $ 0.54 $(0.24) -- --
Year ended 03/31/1997....... 10.36 0.47 (0.02) 0.45 (0.47) -- --
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 09/30/1997
(unaudited)............... $10.34 $ 0.23 $ 0.30 $ 0.53 $(0.23) -- --
Year ended 03/31/1997....... 10.36 0.45 (0.02) 0.43 (0.45) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $10.34 $ 0.21 $ 0.30 $ 0.51 $(0.21) -- --
Year ended 03/31/1997....... 10.36 0.42 (0.02) 0.40 (0.42) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $10.34 $ 0.21 $ 0.30 $ 0.51 $(0.21) -- --
Year ended 03/31/1997....... 10.36 0.42 (0.02) 0.40 (0.42) -- --
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) -- --
</TABLE>
- ---------------
* Nations North Carolina Intermediate Municipal Bond Fund's Primary A,
Investor A, Investor B and Investor C Shares commenced operations on
December 11, 1992, December 14, 1992, June 7, 1993 and December 16, 1992,
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.
132
<PAGE> 136
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS RATE ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.24) $ 10.64 5.28% $170,574 0.50%+(a) 4.59%+ 14% 0.75%+
(0.47) 10.34 4.45 25,855 0.50(a) 4.57 26 0.82
(0.16) 10.36 0.05 21,161 0.50+ 4.47+ 3 0.87+
(0.46) 10.51 15.41 20,916 0.57(a) 4.47 57 0.84
(0.49) 9.53 (4.34) 14,148 0.55(a) 4.38 37 0.82
(0.43) 10.46 9.03 11,814 0.42+ 4.23+ 29 0.85+
$ (0.23) $ 10.64 5.17% $ 6,842 0.70%+(a) 4.39%+ 14% 0.95%+
(0.45) 10.34 4.25 5,723 0.70(a) 4.37 26 1.02
(0.15) 10.36 (0.01) 7,672 0.70+ 4.27+ 3 1.07+
(0.44) 10.51 15.18 8,525 0.77(a) 4.27 57 1.04
(0.47) 9.53 (4.51) 8,896 0.73(a) 4.20 37 1.00
(0.42) 10.46 8.76 13,749 0.57+ 4.08+ 29 1.00+
$ (0.21) $ 10.64 4.96% $ 6,648 1.10%+(a) 3.99%+ 14% 1.35%+
(0.42) 10.34 3.94 6,796 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 8,102 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 7,848 1.07(a) 3.97 57 1.34
(0.44) 9.53 (4.82) 5,706 1.05(a) 3.88 37 1.32
(0.18) 10.46 3.23 3,822 0.92+ 3.73+ 29 1.35+
$ (0.21) $ 10.64 4.96% $ 1,372 1.10%+(a) 3.99%+ 14% 1.35%+
(0.42) 10.34 3.94 1,364 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 1,379 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 1,366 1.07(a) 3.97 57 1.34
(0.43) 9.53 (4.89) 1,486 1.13(a) 3.80 37 1.40
(0.35) 10.46 8.26 1,592 1.17+ 3.48+ 29 1.60+
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
NET INVESTMENT
INCOME
PER SHARE
--------------
<S> <C>
$ 0.23
0.44
0.15
0.43
0.42
0.39
$ 0.22
0.42
0.14
0.41
0.40
0.38
$ 0.20
0.39
0.13
0.38
0.37
0.17
$ 0.20
0.39
0.13
0.38
0.36
0.30
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
133
<PAGE> 137
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.47 $ 0.23 $ 0.39 $ 0.62 $(0.23)
Year ended 03/31/1997....................................... 9.49 0.47 (0.02) 0.45 (0.47)
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 09/30/1997 (unaudited)..................... $ 9.47 $ 0.22 $ 0.39 $ 0.61 $(0.22)
Year ended 03/31/1997....................................... 9.49 0.45 (0.02) 0.43 (0.45)
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 B SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.47 $ 0.20 $ 0.39 $ 0.59 $(0.20)
Year ended 03/31/1997....................................... 9.49 0.40 (0.02) 0.38 (0.40)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.47 $ 0.20 $ 0.39 $ 0.59 $(0.20)
Year ended 03/31/1997....................................... 9.49 0.42 (0.02) 0.40 (0.42)
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)
</TABLE>
- ---------------
* Nations North Carolina Municipal Bond Fund's Primary A, Investor A, Investor
B and Investor C Shares commenced operations on January 11, 1994, November
1, 1993, October 21, 1993 and November 3, 1994, 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.
134
<PAGE> 138
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
-----------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS RATE ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.23) $9.86 6.65% $ 4,495 0.60%+(a) 4.80%+ 7% 0.96%+
(0.47) 9.47 4.84 3,095 0.60(a) 4.95 28 0.94
(0.16) 9.49 (0.87) 1,593 0.60+ 4.86+ 22 0.99+
(0.50) 9.73 22.87 1,293 0.38(a) 5.43 40 0.96
(0.45) 8.36 (12.65) 531 0.21+(a) 5.53+ 29 0.92+
$ (0.22) $9.86 6.54% $ 691 0.80%+(a) 4.60%+ 7% 1.16%+
(0.45) 9.47 4.62 594 0.80(a) 4.75 28 1.14
(0.15) 9.49 (0.94) 448 0.80+ 4.66+ 22 1.19+
(0.49) 9.73 22.63 347 0.58(a) 5.23 40 1.16
(0.50) 8.36 (10.41) 1,161 0.39(a) 5.35 29 1.10
(0.04) 9.85 (0.80) 1,085 0.09+ 3.97+ 10 1.21+
$ (0.20) $9.86 6.23% $ 24,266 1.38%+(a) 4.02%+ 7% 1.74%+
(0.40) 9.47 4.06 23,863 1.35(a) 4.20 28 1.69
(0.13) 9.49 (1.12) 28,298 1.35+ 4.11+ 22 1.74+
(0.43) 9.73 21.96 30,048 1.13(a) 4.68 40 1.71
(0.45) 8.36 (10.92) 23,659 0.96(a) 4.78 29 1.67
(0.04) 9.85 (1.11) 11,395 0.69+ 3.37+ 10 1.81+
$ (0.20) $9.86 6.32% $ 19 1.22%+(a) 4.18%+ 7% 1.58%+
(0.42) 9.47 4.32 18 1.10(a) 4.45 28 1.44
(0.14) 9.49 (1.04) 17 1.14+ 4.32+ 22 1.53+
(0.43) 9.73 21.93 2 1.13(a) 4.68 40 1.71
(0.03) 8.36 (0.67) 2 0.96+(a) 4.78+ 29 1.67+
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
NET INVESTMENT
INCOME
PER SHARE
--------------
<S> <C>
$ 0.21
0.44
0.15
0.45
0.40
$ 0.20
0.42
0.14
0.44
0.43
0.03
$ 0.18
0.37
0.12
0.38
0.38
0.03
$ 0.18
0.39
0.13
0.38
0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
135
<PAGE> 139
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.50 $ 0.25 $ 0.23 $ 0.48 $(0.25) -- --
Year ended 03/31/1997....... 10.52 0.51 (0.02) 0.49 (0.51) -- --
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 09/30/1997
(unaudited)............... $ 10.50 $ 0.24 $ 0.23 $ 0.47 $(0.24) -- --
Year ended 03/31/1997....... 10.52 0.49 (0.02) 0.47 (0.49) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.50 $ 0.22 $ 0.23 $ 0.45 $(0.22) -- --
Year ended 03/31/1997....... 10.52 0.45 (0.02) 0.43 (0.45) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.50 $ 0.22 $ 0.23 $ 0.45 $(0.22) -- --
Year ended 03/31/1997....... 10.52 0.45 (0.02) 0.43 (0.45) -- --
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) -- --
</TABLE>
- ---------------
* Nations South Carolina Intermediate Municipal Bond Fund's Primary A,
Investor A, Investor B and Investor C Shares commenced operations on January
6, 1992, May 5, 1992, June 8, 1993 and June 17, 1992, 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.
136
<PAGE> 140
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS ASSETS RATE ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.25) $ 10.73 4.65% $255,123 0.50%+(a) 4.79%+ 13% 0.74%+
(0.51) 10.50 4.71 48,918 0.50(a) 4.80 13 0.79
(0.17) 10.52 0.00## 41,817 0.50+(a) 4.81+ 6 0.82+
(0.51) 10.69 15.02 45,255 0.55(a) 4.92 11 0.75
(0.51) 9.76 (3.37) 49,030 0.54(a) 4.82 30 0.75
(0.50) 10.61 9.32 56,995 0.45 4.68 11 0.75
(0.47) 10.18 6.62+++ 39,535 0.20+ 4.11+ 7 0.74+
$ (0.24) $ 10.73 4.55% $ 10,408 0.70%+(a) 4.59%+ 13% 0.94%+
(0.49) 10.50 4.51 10,465 0.70(a) 4.60 13 0.99
(0.16) 10.52 (0.07) 14,288 0.70+(a) 4.61+ 6 1.02+
(0.49) 10.69 14.79 14,452 0.75(a) 4.72 11 0.95
(0.49) 9.76 (3.54) 16,378 0.72(a) 4.64 30 0.93
(0.48) 10.61 9.16 20,024 0.60 4.53 11 0.90
(0.30) 10.18 5.03+++ 7,414 0.33+ 4.83+ 7 0.85+
$ (0.22) $ 10.73 4.34% $ 6,372 1.10%+(a) 4.19%+ 13% 1.34%+
(0.45) 10.50 4.19 5,738 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 6,968 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 6,457 1.05(a) 4.42 11 1.25
(0.46) 9.76 (3.85) 5,740 1.04(a) 4.32 30 1.25
(0.20) 10.61 3.23 4,057 0.95+ 4.18+ 11 1.25+
$ (0.22) $ 10.73 4.34% $ 4,432 1.10%+(a) 4.19%+ 13% 1.34%+
(0.45) 10.50 4.20 5,089 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 5,409 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 5,527 1.05(a) 4.42 11 1.25
(0.45) 9.76 (3.94) 6,167 1.12(a) 4.24 30 1.33
(0.42) 10.61 8.51 8,499 1.20 3.93 11 1.50
(0.20) 10.18 3.27+++ 4,436 0.88+ 4.10+ 7 1.48+
<CAPTION>
WITHOUT
WAIVERS
AND/OR
EXPENSE
REIMBURSEMENTS
--------------
NET INVESTMENT
INCOME
PER SHARE
--------------
<S> <C>
0.48
0.47
0.42
$ 0.23
0.46
0.15
0.47
0.46
0.45
0.27
$ 0.21
0.42
0.14
0.44
0.43
0.19
$ 0.21
0.42
0.14
0.44
0.42
0.39
0.17
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
137
<PAGE> 141
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.79 $ 0.24 $ 0.33 $ 0.57 $(0.24)
Year ended 03/31/1997....................................... 9.77 0.49 0.02 0.51 (0.49)
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 09/30/1997 (unaudited)..................... $ 9.79 $ 0.23 $ 0.33 $ 0.56 $(0.23)
Year ended 03/31/1997....................................... 9.77 0.47 0.02 0.49 (0.47)
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 B SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.79 $ 0.21 $ 0.33 $ 0.54 $(0.21)
Year ended 03/31/1997....................................... 9.77 0.42 0.02 0.44 (0.42)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)..................... $ 9.79 $ 0.22 $ 0.33 $ 0.55 $(0.22)
Year ended 03/31/1997....................................... 9.77 0.44 0.02 0.46 (0.44)
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)
</TABLE>
- ---------------
* Nations South Carolina Municipal Bond Fund's Primary A, Investor A, Investor
B and Investor C Shares commenced operations on December 27, 1993, November
8, 1993, October 21, 1993 and November 3, 1994, 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 $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
138
<PAGE> 142
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
RATIO OF EXPENSES TO RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO ASSETS INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
($ 0.24) $ 10.12 6.02% $ 6,855 0.60%+(a) (a) 4.88%+ 8%
(0.49) 9.79 5.32 5,113 0.60 (a) 4.99 30
(0.17) 9.77 (0.57) 2,058 0.60+ (a) 4.96+ 20
(0.52) 9.99 21.99 1,782 0.40 (a) 5.44 13
(0.48) 8.65 (9.12) 400 0.21+ (a) 5.48+ 14
$ (0.23) $ 10.12 5.91% $ 1,705 0.80%+(a) (a) 4.68%+ 8%
(0.47) 9.79 5.12 811 0.80 (a) 4.79 30
(0.16) 9.77 (0.64) 1,219 0.80+ (a) 4.76+ 20
(0.50) 9.99 21.74 1,238 0.60 (a) 5.24 13
(0.50) 8.65 (7.45) 140 0.39 (a) 5.30 14
(0.03) 9.86 0.21 14 0.10+ -- 4.16+ 8
$ (0.21) $ 10.12 5.60% $ 10,691 1.38%+(a) (a) 4.10%+ 8%
(0.42) 9.79 4.54 12,104 1.35 (a) 4.24 30
(0.14) 9.77 (0.82) 12,991 1.35+ (a) 4.21+ 20
(0.45) 9.99 21.08 12,670 1.15 (a) 4.69 13
(0.45) 8.65 (7.97) 8,263 0.96 (a) 4.73 14
(0.04) 9.86 (1.00) 4,048 0.70+ -- 3.56+ 8
$ (0.22) $ 10.12 5.71% $ 3 1.22%+ (a) 4.25%+ 8%
(0.44) 9.79 4.80 247 1.10 (a) 4.49 30
(0.15) 9.77 (0.76) 264 1.17+ (a) 4.39+ 20
(0.45) 9.99 21.01 20 1.15 (a) 4.69 13
(0.03) 8.65 (0.52) 2 0.96+ (a) 4.73+ 14
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
--
<S> <C> <C> <C>
1.02%+ $ 0.22
1.00 0.45
1.13+ 0.15
1.08 0.46
1.12+ 0.41
1.22%+ $ 0.21
1.20 0.43
1.33+ 0.14
1.28 0.44
1.30 0.42
1.63+ 0.02
1.80%+ $ 0.19
1.75 0.38
1.88+ 0.12
1.83 0.39
1.87 0.37
2.23+ 0.02
1.64%+ $ 0.20
1.50 0.40
1.70+ 0.13
1.83 0.39
1.87+ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
139
<PAGE> 143
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.08 $ 0.23 $ 0.25 $ 0.48 $(0.23) -- --
Year ended 03/31/1997....... 10.09 0.46 (0.01) 0.45 (0.46) -- --
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 09/30/1997
(unaudited)............... $ 10.08 $ 0.22 $ 0.25 $ 0.47 $(0.22) -- --
Year ended 03/31/1997....... 10.09 0.44 (0.01) 0.43 (0.44) -- --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.08 $ 0.21 $ 0.25 $ 0.46 $(0.21) -- --
Year ended 03/31/1997....... 10.09 0.41 (0.01) 0.40 (0.41) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.08 $ 0.20 $ 0.25 $ 0.45 $(0.20) -- --
Year ended 03/31/1997....... 10.09 0.42 (0.01) 0.41 (0.42) -- --
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) -- --
</TABLE>
- ---------------
* Nations Tennessee Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor B and Investor C Shares commenced operations on April 13, 1993,
April 2, 1993, June 10, 1993 and November 3, 1994, 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.
140
<PAGE> 144
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
RATIO OF EXPENSES TO RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING AVERAGE NET NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO ASSETS INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.23) $ 10.33 4.84% $ 36,850 0.50%+ (a) 4.54%+ 33%
(0.46) 10.08 4.54 8,869 0.50 (a) 4.55 28
(0.15) 10.09 0.12 8,408 0.50+ -- 4.51+ 3
(0.46) 10.23 15.22 7,160 0.57 (a) 4.65 34
(0.46) 9.30 (4.24) 4,116 0.52 0.53% 4.56 41
(0.29) 10.18 4.09 2,123 0.27+ -- 4.31+ 16
$ (0.22) $ 10.33 4.73% $ 6,847 0.70%+ (a) 4.34%+ 33%
(0.44) 10.08 4.33 6,840 0.70 (a) 4.35 28
(0.15) 10.09 0.06 7,439 0.70+ -- 4.31+ 3
(0.44) 10.23 15.00 7,573 0.77 (a) 4.45 34
(0.44) 9.30 (4.41) 7,831 0.70 0.71% 4.38 41
(0.29) 10.18 4.68 15,573 0.42+ -- 4.16+ 16
$ (0.21) $ 10.33 4.52% $ 3,203 1.10%+ (a) 3.94%+ 33%
(0.41) 10.08 4.02 3,050 1.00 (a) 4.05 28
(0.14) 10.09 (0.04) 3,528 1.00+ -- 4.01+ 3
(0.41) 10.23 14.65 3,573 1.07 (a) 4.15 34
(0.41) 9.30 (4.72) 3,368 1.02 1.03% 4.06 41
(0.17) 10.18 3.32 2,210 0.77+ -- 3.81+ 16
$ (0.20) $ 10.33 4.57% $ 2 1.10%+ (a) 3.94%+ 33%
(0.42) 10.08 4.08 2 1.00 (a) 4.05 28
(0.14) 10.09 (0.02) 2 1.00+ -- 4.01+ 3
(0.41) 10.23 14.62 2 1.07 (a) 4.15 34
(0.03) 9.30 (0.53) 2 1.02+ 1.03%+ 4.06+ 41
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENT
----------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
-------------------------------
<S> <C>
0.86%+ $ 0.21
0.93 0.42
1.02+ 0.13
0.92 0.43
0.89 0.41
0.94+ 0.24
1.06%+ $ 0.20
1.13 0.40
1.22+ 0.13
1.12 0.41
1.07 0.40
1.09+ 0.24
1.46%+ $ 0.19
1.43 0.37
1.52+ 0.12
1.42 0.38
1.39 0.37
1.44+ 0.14
1.46%+ $ 0.18
1.43 0.38
1.52+ 0.12
1.42 0.38
1.39+ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
141
<PAGE> 145
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TENNESSEE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)................... $ 9.70 $ 0.24 $ 0.40 $ 0.64 $(0.24)
Year ended 03/31/1997..................................... 9.68 0.48 0.02 0.50 (0.48)
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 09/30/1997 (unaudited)................... $ 9.70 $ 0.23 $ 0.40 $ 0.63 $(0.23)
Year ended 03/31/1997..................................... 9.68 0.46 0.02 0.48 (0.46)
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 B SHARES
Six months ended 09/30/1997 (unaudited)................... $ 9.70 $ 0.20 $ 0.40 $ 0.60 $(0.20)
Year ended 03/31/1997..................................... 9.68 0.40 0.02 0.42 (0.40)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)................... $ 9.70 $ 0.21 $ 0.40 $ 0.61 $(0.21)
Year ended 03/31/1997..................................... 9.68 0.43 0.02 0.45 (0.43)
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)
</TABLE>
- ---------------
* Nations Tennessee Municipal Bond Fund's Primary A, Investor A, Investor B
and Investor C Shares commenced operations on March 2, 1994, November 2,
1993, October 21, 1993 and November 3, 1994, 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.
142
<PAGE> 146
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
RATIO OF OPERATING
NET OPERATING EXPENSES TO
ASSETS EXPENSES AVERAGE NET RATIO OF
TOTAL NET ASSET END OF TO ASSETS NET INVESTMENT
DIVIDENDS VALUE PERIOD AVERAGE INCLUDING INCOME TO PORTFOLIO
AND END OF TOTAL (IN NET INTEREST AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ 000'S) ASSETS EXPENSE ASSETS RATE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.24) $ 10.10 6.64% $ 3,303 0.60%+ (a) 4.79%+ 14%
(0.48) 9.70 5.23 2,594 0.60 (a) 4.91 31
(0.16) 9.68 (0.30) 975 0.60+ 0.61%+ 4.92+ 2
(0.52) 9.87 21.52 768 0.40 (a) 5.49 45
(0.39) 8.58 (6.66) 311 0.21+ (a) 5.56+ 38
$ (0.23) $ 10.10 6.53% $ 1,342 0.80%+ (a) 4.59%+ 14%
(0.46) 9.70 5.02 1,018 0.80 (a) 4.71 31
(0.15) 9.68 (0.37) 973 0.80+ 0.81%+ 4.72+ 2
(0.50) 9.87 21.28 203 0.60 (a) 5.29 45
(0.50) 8.58 (7.58) 43 0.39 (a) 5.38 38
(0.04) 9.80 (0.43) 34 0.17+ -- 4.31+ 3
$ (0.20) $ 10.10 6.23% $ 4,840 1.38%+ (a) 4.01%+ 14%
(0.40) 9.70 4.45 5,319 1.35 (a) 4.16 31
(0.14) 9.68 (0.55) 6,761 1.35+ 1.36%+ 4.17+ 2
(0.45) 9.87 20.63 6,619 1.15 (a) 4.74 45
(0.45) 8.58 (8.10) 5,504 0.96 (a) 4.81 38
(0.04) 9.80 (1.61) 3,284 0.77+ -- 3.71+ 3
$ (0.21) $ 10.10 6.31% $ 41 1.22%+ (a) 4.17%+ 14%
(0.43) 9.70 4.71 38 1.10 (a) 4.41 31
(0.14) 9.68 (0.49) 37 1.18+ 1.18%+ 4.34+ 2
(0.45) 9.87 20.62 64 1.15 (a) 4.74 45
(0.03) 8.58 (0.07) 2 0.96+ (a) 4.81+ 38
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
1.25%+ $ 0.21
1.24 0.42
1.47+ 0.13
1.27 0.44
1.20+ 0.32
1.45%+ $ 0.20
1.44 0.40
1.67+ 0.12
1.47 0.42
1.38 0.42
1.86+ 0.03
2.03%+ $ 0.17
1.99 0.34
2.22+ 0.11
2.02 0.37
1.95 0.37
2.46+ 0.02
1.87%+ $ 0.18
1.74 0.37
2.05+ 0.11
2.02 0.37
1.95+ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
143
<PAGE> 147
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 TEXAS INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended
09/30/1997
(unaudited)............ $ 10.18 $ 0.24 $ 0.27 $ 0.51 $(0.24) -- --
Year ended 03/31/1997.... 10.21 0.47 (0.03) 0.44 (0.47) -- --
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
09/30/1997
(unaudited)............ $ 10.18 $ 0.23 $ 0.27 $ 0.50 $(0.23) -- --
Year ended 03/31/1997.... 10.21 0.45 (0.03) 0.42 (0.45) -- --
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 B SHARES
Six months ended
09/30/1997
(unaudited)............ $ 10.18 $ 0.21 $ 0.27 $ 0.48 $(0.21) -- --
Year ended 03/31/1997.... 10.21 0.42 (0.03) 0.39 (0.42) -- --
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) -- --
INVESTOR C SHARES
Six months ended
09/30/1997
(unaudited)............ $ 10.18 $ 0.21 $ 0.27 $ 0.48 $(0.21) -- --
Year ended 03/31/1997.... 10.21 0.42 (0.03) 0.39 (0.42) -- --
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)# --
</TABLE>
- ---------------
* Nations Texas Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor B and Investor C Shares commenced operations on January 12, 1993,
February 4, 1993, June 22, 1993 and November 3, 1994, 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.
144
<PAGE> 148
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
RATIO OF OPERATING
NET OPERATING EXPENSES TO
ASSETS EXPENSES AVERAGE NET RATIO OF
TOTAL NET ASSET END OF TO ASSETS NET INVESTMENT
DIVIDENDS VALUE PERIOD AVERAGE INCLUDING INCOME TO PORTFOLIO
AND END OF TOTAL (IN NET INTEREST AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ 000'S) ASSETS EXPENSE ASSETS RATE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.24) $ 10.45 6.69% $383,866 0.50%+ (a) 4.71%+ 18%
(0.47) 10.18 4.37 24,764 0.50 -- 4.59 34
(0.16) 10.21 0.05 27,176 0.50+ -- 4.52+ 11
(0.46) 10.36 13.83 26,382 0.57 (a) 4.62 64
(0.47) 9.53 (3.48) 24,066 0.55 (a) 4.40 61
(0.41) 10.35 7.72 31,875 0.44+ -- 4.43+ 63
$ (0.23) $ 10.45 6.59% $ 1,243 0.70%+ (a) 4.51%+ 18%
(0.45) 10.18 4.17 909 0.70 -- 4.39 34
(0.15) 10.21 (0.02) 801 0.70+ -- 4.32+ 11
(0.44) 10.36 13.60 806 0.77 (a) 4.42 64
(0.45) 9.53 (3.66) 718 0.73 (a) 4.22 61
(0.37) 10.35 5.64 968 0.59+ -- 4.28+ 63
$ (0.21) $ 10.45 6.28% $ 2,160 1.10%+ (a) 4.11%+ 18%
(0.42) 10.18 3.87 2,182 1.00 -- 4.09 34
(0.14) 10.21 (0.12) 2,845 1.00+ -- 4.02+ 11
(0.41) 10.36 13.27 3,136 1.07 (a) 4.12 64
(0.42) 9.53 (3.96) 2,774 1.05 (a) 3.90 61
(0.17) 10.35 2.61 1,330 0.94+ -- 3.93+ 63
$ (0.21) $ 10.45 6.36% $ 619 1.10%+ (a) 4.11%+ 18%
(0.42) 10.18 3.87 591 1.00 -- 4.09 34
(0.14) 10.21 (0.12) 569 1.00+ -- 4.02+ 11
(0.41) 10.36 13.27 570 1.07 (a) 4.12 64
(0.03) 9.53 0.08 2 1.05+ (a) 3.90+ 61
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
0.70%+ $ 0.23
0.84 0.43
0.89+ 0.15
0.83 0.44
0.78 0.42
0.82+ 0.38
0.90%+ $ 0.22
1.04 0.41
1.09+ 0.14
1.03 0.42
0.96 0.40
0.97+ 0.34
1.30%+ $ 0.20
1.34 0.38
1.39+ 0.13
1.33 0.39
1.28 0.37
1.32+ 0.16
1.30%+ $ 0.20
1.34 0.38
1.39+ 0.13
1.33 0.39
1.28+ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
145
<PAGE> 149
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TEXAS MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.48 $ 0.24 $ 0.39 $ 0.63 $(0.24)
Year ended 03/31/1997....................................... 9.49 0.48 (0.01) 0.47 (0.48)
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 09/30/1997 (unaudited)..................... $9.48 $ 0.23 $ 0.39 $ 0.62 $(0.23)
Year ended 03/31/1997....................................... 9.49 0.46 (0.01) 0.45 (0.46)
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 B SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.48 $ 0.21 $ 0.39 $ 0.60 $(0.21)
Year ended 03/31/1997....................................... 9.49 0.40 (0.01) 0.39 (0.40)
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)
INVESTOR C SHARES
Six months ended 09/30/1997 (unaudited)..................... $9.48 $ 0.22 $ 0.39 $ 0.61 $(0.22)
Year ended 03/31/1997....................................... 9.49 0.43 (0.01) 0.42 (0.43)
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)
</TABLE>
- ---------------
* Nations Texas Municipal Bond Fund's Primary A, Investor A, Investor B and
Investor C Shares commenced operations on February 3, 1994, December 17,
1993, October 21, 1993, and November 3, 1994, 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.
146
<PAGE> 150
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF WITHOUT WAIVERS AND/OR
RATIO OF OPERATING EXPENSE REIMBURSEMENTS
NET OPERATING EXPENSES TO ----------------------
ASSETS EXPENSES AVERAGE NET RATIO OF
TOTAL NET ASSET END OF TO ASSETS NET INVESTMENT
DIVIDENDS VALUE PERIOD AVERAGE INCLUDING INCOME TO PORTFOLIO
AND END OF TOTAL (IN NET INTEREST AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ 000'S) ASSETS EXPENSE ASSETS RATE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.24) $9.87 6.69% $ 6,656 0.60%+ 0.61+ 4.90%+ 20%
(0.48) 9.48 5.00 5,675 0.60 (a) 4.99 52
(0.16) 9.49 (0.55) 5,138 0.60+ -- 4.92+ 6
(0.50) 9.70 22.09 4,613 0.39 (a) 5.45 50
(0.42) 8.39 (12.21) 2,285 0.22+ (a) 5.52+ 107
$ (0.23) $9.87 6.59% $ 412 0.80%+ 0.81+ 4.70%+ 20%
(0.46) 9.48 4.78 371 0.80 (a) 4.79 52
(0.15) 9.49 (0.62) 317 0.80+ -- 4.72+ 6
(0.49) 9.70 21.85 351 0.59 (a) 5.25 50
(0.47) 8.39 (10.98) 55 0.40+ (a) 5.34+ 107
$ (0.21) $9.87 6.28% $ 9,290 1.38%+ 1.39+ 4.12%+ 20%
(0.40) 9.48 4.21 10,090 1.35 (a) 4.24 52
(0.13) 9.49 (0.80) 11,838 1.35+ -- 4.17+ 6
(0.43) 9.70 21.19 12,587 1.14 (a) 4.70 50
(0.44) 8.39 (9.98) 10,812 0.97 (a) 4.77 107
(0.04) 9.78 (1.82) 6,154 0.70+ -- 3.32+ 5
$ (0.22) $9.87 6.36% $ 78 1.22%+ 1.23+ 4.28%+ 20%
(0.43) 9.48 4.47 73 1.10 (a) 4.49 52
(0.14) 9.49 (0.74) 70 1.16+ -- 4.36+ 6
(0.43) 9.70 21.15 70 1.14 (a) 4.70 50
(0.03) 8.39 (0.43) 2 0.97+ (a) 4.77+ 107
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
-----------------------------
<S> <C>
1.09%+ $ 0.22
1.03 0.44
1.11+ 0.14
1.05 0.44
1.06+ 0.35
1.29%+ $ 0.21
1.23 0.42
1.31+ 0.13
1.25 0.43
1.24+ 0.39
1.87%+ $ 0.19
1.78 0.36
1.86+ 0.11
1.80 0.37
1.81 0.37
2.05+ 0.03
1.71%+ $ 0.20
1.53 0.39
1.67+ 0.12
1.80 0.37
1.81+ 0.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
147
<PAGE> 151
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
PRIMARY A SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.59 $ 0.26 $ 0.27 $ 0.53 $(0.26) -- --
Year ended 03/31/1997....... 10.69 0.51 (0.10) 0.41 (0.51) -- --
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 09/30/1997
(unaudited)............... $ 10.59 $ 0.25 $ 0.27 $ 0.52 $(0.25) -- --
Year ended 03/31/1997....... 10.69 0.49 (0.10) 0.39 (0.49) -- --
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) --
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 B SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.59 $ 0.22 $ 0.27 $ 0.49 $(0.22) -- --
Year ended 03/31/1997....... 10.69 0.46 (0.10) 0.36 (0.46) -- --
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) -- --
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)............... $ 10.59 $ 0.22 $ 0.27 $ 0.49 $(0.22) -- --
Year ended 03/31/1997....... 10.69 0.46 (0.10) 0.36 (0.46) -- --
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) -- --
</TABLE>
- ---------------
* Nations Virginia Intermediate Municipal Bond Fund's Primary A, Investor A,
Investor B and Investor C Shares commenced operations on September 20, 1989,
December 5, 1989, June 7, 1993, and June 17, 1992, 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.
148
<PAGE> 152
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
OPERATING
EXPENSES TO
RATIO OF AVERAGE NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING ASSETS NET INVESTMENT
DIVIDENDS VALUE END OF EXPENSES TO INCLUDING INCOME TO PORTFOLIO
AND END OF TOTAL PERIOD AVERAGE NET INFERRED AVERAGE NET TURNOVER
DISTRIBUTIONS PERIOD RETURN++ (IN 000'S) ASSETS EXPENSES ASSETS RATE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.26) $ 10.86 5.02% $152,721 0.50%+ (a) 4.77%+ 10%
(0.51) 10.59 3.92 148,701 0.50 (a) 4.79 20
(0.17) 10.69 0.27 155,464 0.50+ (a) 4.72+ 2
(0.51) 10.83 14.39 157,252 0.56 (a) 4.87 22
(0.59) 9.94 (4.35) 167,405 0.61 (a) 4.76 14
(0.50) 10.99 9.08 193,084 0.57 -- 4.80 26
(0.58) 10.59 8.28+++ 157,773 0.56 -- 5.17 13
(0.59) 10.34 8.04+++ 119,757 0.45 -- 5.67 24
(0.66) 10.14 7.41+++ 75,962 0.26 -- 6.09 19
(0.07) 10.08 1.46+++ 46,560 0.16+ -- 6.09+ 12
$ (0.25) $ 10.86 4.92% $ 52,756 0.70%+ (a) 4.57%+ 10%
(0.49) 10.59 3.71 55,791 0.70 (a) 4.59 20
(0.16) 10.69 0.20 68,003 0.70+ (a) 4.52+ 2
(0.49) 10.83 14.16 73,253 0.76 (a) 4.67 22
(0.57) 9.94 (4.52) 79,412 0.79 (a) 4.58 14
(0.53) 10.99 8.91 103,689 0.72 -- 4.65 26
(0.58) 10.59 8.18+++ 76,650 0.65 -- 5.04 13
(0.59) 10.34 8.04+++ 44,540 0.45 -- 5.67 24
(0.66) 10.14 7.41+++ 24,303 0.26+ -- 6.09+ 19
$ (0.22) $ 10.86 4.71% $ 10,078 1.10%+ (a) 4.17%+ 10%
(0.46) 10.59 3.40 10,516 1.00 (a) 4.29 20
(0.15) 10.69 0.10 11,926 1.00+ (a) 4.22+ 2
(0.46) 10.83 13.82 12,163 1.06 (a) 4.37 22
(0.54) 9.94 (4.82) 9,690 1.11 (a) 4.26 14
(0.21) 10.99 3.48 5,249 1.07+ -- 4.30+ 26
$ (0.22) $ 10.86 4.71% $ 5,921 1.10%+ (a) 4.17%+ 10%
(0.46) 10.59 3.40 6,463 1.00 (a) 4.29 20
(0.15) 10.69 0.10 6,909 1.00+ (a) 4.22+ 2
(0.46) 10.83 13.82 7,152 1.06 (a) 4.37 22
(0.53) 9.94 (4.90) 8,372 1.19 (a) 4.18 14
(0.46) 10.99 8.25 11,176 1.32 -- 4.05 26
(0.19) 10.59 3.36+++ 4,769 1.28+ -- 3.99+ 13
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
--------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT
AVERAGE NET INCOME
ASSETS PER SHARE
------------------------------
<S> <C>
0.76%+ $ 0.24
0.74 0.49
0.76+ 0.16
0.74 0.49
0.73 0.49
0.69 0.47
0.68 0.53
0.73 0.55
0.80 0.55
0.81+ 0.08
0.96%+ $ 0.23
0.94 0.47
0.96+ 0.15
0.94 0.47
0.91 0.47
0.84 0.49
0.97 0.50
0.73 0.55
0.80+ 0.55
1.36%+ $ 0.20
1.24 0.44
1.26+ 0.14
1.24 0.44
1.23 0.43
1.19+ 0.20
1.36%+ $ 0.20
1.24 0.44
1.26+ 0.14
1.24 0.44
1.31 0.43
1.44 0.43
2.80+ 0.12
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
149
<PAGE> 153
NATIONS FUNDS
- --------------------------------------------------------------------------------
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 09/30/1997
(unaudited)................. $ 9.40 $ 0.24 $ 0.36 $ 0.60 $(0.24) (0.24) $9.76
Year ended 03/31/1997......... 9.38 0.48 0.02 0.50 (0.48) (0.48) 9.40
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 09/30/1997
(unaudited)................. $ 9.40 $ 0.23 $ 0.36 $ 0.59 $(0.23) (0.23) $9.76
Year ended 03/31/1997......... 9.38 0.46 0.02 0.48 (0.46) (0.46) 9.40
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 B SHARES
Six months ended 09/30/1997
(unaudited)................. $ 9.40 $ 0.20 $ 0.36 $ 0.56 $(0.20) (0.20) $9.76
Year ended 03/31/1997......... 9.38 0.41 0.02 0.43 (0.41) (0.41) 9.40
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
INVESTOR C SHARES
Six months ended 09/30/1997
(unaudited)................. $ 9.40 $ 0.21 $ 0.36 $ 0.57 $(0.21) (0.21) $9.76
Year ended 03/31/1997......... 9.38 0.43 0.02 0.45 (0.43) (0.43) 9.40
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
</TABLE>
- ---------------
* Nations Virginia Municipal Bond Fund's Primary A, Investor A, Investor B
and Investor C Shares commenced operations on January 11, 1994, November 8,
1993, October 21, 1993 and November 3, 1994, 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.
150
<PAGE> 154
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
RATIO OF -----------------------------
RATIO OF OPERATING RATIO OF RATIO OF
NET ASSETS OPERATING EXPENSES TO NET INVESTMENT OPERATING
END OF EXPENSES TO AVERAGE NET INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE NET ASSETS INCLUDING AVERAGE NET TURNOVER AVERAGE NET INCOME
RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE ASSETS PER SHARE
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6.43% $ 8,311 0.60%+ (a) 4.95%+ 7% 1.02%+ $ 0.22
5.44 5,726 0.60 (a) 5.10 37 0.98 0.44
(0.84) 3,296 0.60+ 0.61%+ 5.06+ 8 1.07+ 0.14
22.63 3,527 0.39 (a) 5.51 16 1.04 0.46
(12.86) 432 0.21+ (a) 5.52+ 61 0.99+ 0.38
6.32% $ 832 0.80%+ (a) 4.75%+ 7% 1.22%+ $ 0.21
5.23 726 0.80 (a) 4.90 37 1.18 0.42
(0.91) 661 0.80+ 0.81%+ 4.86+ 8 1.27+ 0.14
22.39 650 0.59 (a) 5.31 16 1.24 0.44
(10.44) 168 0.39 (a) 5.34 61 1.17 0.43
(0.42) 25 0.10+ -- 3.88+ 0 1.30+ 0.02
6.01% $ 14,118 1.38%+ (a) 4.17%+ 7% 1.80%+ $ 0.18
4.65 13,972 1.35 (a) 4.35 37 1.73 0.37
(1.09) 15,938 1.35+ 1.36%+ 4.31+ 8 1.82+ 0.12
21.72 16,489 1.14 (a) 4.76 16 1.79 0.39
(10.95) 12,738 0.96 (a) 4.77 61 1.74 0.37
(1.93) 6,580 0.70+ -- 3.28+ 0 1.90+ 0.03
6.10% $ 48 1.22%+ (a) 4.33%+ 7% 1.64%+ $ 0.19
4.92 45 1.10 (a) 4.60 37 1.48 0.39
(1.03) 43 1.16+ 1.17%+ 4.50+ 8 1.63+ 0.12
21.71 34 1.14 (a) 4.76 16 1.79 0.39
(0.67) 2 0.96+ (a) 4.77+ 61 1.74+ 0.03
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
151
<PAGE> 155
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end investment company. As of
the date of this report, the Trust offers thirty-three separate portfolios.
Information presented in these financial statements pertains only to: 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 B Shares (formerly Investor N Shares) and Investor C Shares. The Board
of Trustees has authorized the issuance of Primary B Shares for all Funds. As of
September 30, 1997, 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 differ from the interests of any other
class.
1. SIGNIFICANT ACCOUNTING POLICIES.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Funds in the preparation of
their financial statements.
Securities Valuation: 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,
redemption features and credit 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 by the investment adviser 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
based on the specific identification of the securities sold. Interest income,
adjusted for accretion of discounts and amortization of premiums, is earned from
settlement date and is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date. Each Fund's investment income and realized and
unrealized gains and losses are allocated among 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.
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 annually after the
fiscal year in which the capital gains were earned, unless offset by any
available capital loss carryforward. Additional distributions of net investment
income and capital gains may be made at the discretion of the Board of Trustees
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.
152
<PAGE> 156
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Federal Income Tax: It is the policy of each Fund 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 applicable.
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 net assets of
each class of shares.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
The Trust has, on behalf of the Funds, entered into an investment advisory
agreement (the "Investment Advisory Agreement") with NationsBanc Advisors, Inc.
("NBAI"), a wholly-owned subsidiary of NationsBank, N.A. ("NationsBank"),
pursuant to which NBAI provides investment advisory services to the Funds. Under
the terms of this Investment Advisory Agreement, NBAI is entitled to receive an
advisory fee calculated daily and payable monthly based on the following annual
rates multiplied by 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, on behalf of the Funds, entered into a sub-advisory agreement
(the "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 a sub-advisory
fee from NBAI 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 (the "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 (the "Co-Administration Agreement"). Pursuant to the
Administration and Co-Administration Agreements, Stephens and First Data 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 Trust's Funds.
NationsBank serves as the sub-administrator of the Trust pursuant to a sub-
administration agreement (the "Sub-Administration Agreement") with Stephens. For
the six months ended September 30, 1997, Stephens earned $346,792 (net of fee
waivers) from the Funds for its administration services, of which $93,052 was
paid to NationsBank for its services as sub-administrator.
NationsBank of Texas, N.A. ("NationsBank of Texas" and, collectively with The
Bank of New York ("BONY"), called "Custodians") acts as Custodian of the Trust's
assets and, for the six months ended September 30, 1997, earned $128,174 for
providing such services. BONY has entered into an agreement with each of the
Funds and NationsBank of Texas, whereby BONY will serve as sub-custodian for the
Funds.
153
<PAGE> 157
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The investment adviser, sub-adviser, administrator and custodian may, from time
to time, voluntarily reduce their fees payable by each Fund. For the six months
ended September 30, 1997, the investment adviser and administrator voluntarily
waived fees and reimbursed expenses as follows:
<TABLE>
<CAPTION>
FEES WAIVED BY FEES
-------------------------- REIMBURSED BY
ADVISER ADMINISTRATOR ADVISER
--------------------------------------------
<S> <C> <C> <C>
Nations Short-Term Municipal Income Fund................................. $169,119 $ 8,941 $ --
Nations Intermediate Municipal Bond Fund................................. 381,091 42,935 --
Nations Municipal Income Fund............................................ 305,211 30,837 --
Nations Florida Intermediate Municipal Bond Fund......................... 112,327 10,263 --
Nations Florida Municipal Bond Fund...................................... 58,455 4,218 --
Nations Georgia Intermediate Municipal Bond Fund......................... 95,079 8,617 --
Nations Georgia Municipal Bond Fund...................................... 34,384 1,627 --
Nations Maryland Intermediate Municipal Bond Fund........................ 123,980 8,930 --
Nations Maryland Municipal Bond Fund..................................... 39,575 1,637 --
Nations North Carolina Intermediate Municipal Bond Fund.................. 86,992 8,094 --
Nations North Carolina Municipal Bond Fund............................... 47,100 2,838 --
Nations South Carolina Intermediate Municipal Bond Fund.................. 137,829 12,790 --
Nations South Carolina Municipal Bond Fund............................... 35,971 1,810 --
Nations Tennessee Intermediate Municipal Bond Fund....................... 46,415 2,707 --
Nations Tennessee Municipal Bond Fund.................................... 28,684 931 761
Nations Texas Intermediate Municipal Bond Fund........................... 113,338 12,929 --
Nations Texas Municipal Bond Fund........................................ 36,998 1,627 --
Nations Virginia Intermediate Municipal Bond Fund........................ 264,840 22,189 --
Nations Virginia Municipal Bond Fund..................................... 43,423 2,182 --
</TABLE>
First Data also serves as the transfer agent for the Funds' shares. NationsBank
of Texas also acts as the sub-transfer agent for the Primary Shares of the Funds
and, for the six months ended September 30, 1997, earned approximately $100,457
for providing such services.
Stephens also serves as distributor of the Funds' shares. For the six months
ended September 30, 1997, the Funds were informed that the distributor received
$269,295 in contingent deferred sales charges from shares which were subject to
such charges. A substantial portion of these fees are paid to affiliates of
NationsBank and NBAI.
No officer, director or employee of NationsBank, 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
unaffiliated 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 unaffiliated Trustee in attending such
meetings.
The Trust's eligible Trustees may participate in non-qualified deferred
compensation and retirement plans 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 and retirement plan is included in
"Trustees' Fees and Expenses" in 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 B Shares
and Investor C Shares of each Fund; and a distribution plan ("Distribution
Plan") pursuant to Rule 12b-1 for Investor B Shares and Investor C Shares of
each Fund (collectively, the "Plans"). 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-Term Municipal Income Fund, Investor B
Shares and Investor C Shares, respectively. The Distribution Plan permits the
Funds to compensate or reimburse
154
<PAGE> 158
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Stephens for any activities or expenses primarily intended to result in the sale
of the Funds' Investor B Shares or Investor C Shares, respectively. Payments
under the Plans are accrued daily and paid monthly at a rate set, from time to
time, by the distributor. Fees incurred pursuant to the Plans are charged as
expenses of each Fund directly to the Investor A Shares, Investor B Shares and
Investor C Shares, respectively.
For the six months ended September 30, 1997, the effective rates incurred by the
Funds, as a percentage of average daily net assets, pursuant to the Plans were
as follows:
<TABLE>
<CAPTION>
INVESTOR B INVESTOR B INVESTOR C INVESTOR C
INVESTOR DISTRIBUTION SERVICING DISTRIBUTION SERVICING
FUND A PLAN PLAN** PLAN PLAN** PLAN
------------------------------------------------------------------------
<S> <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 0.35 0.25 0.35 0.25
Nations Municipal Income Fund......................... 0.20 0.53 0.25 0.37 0.25
Nations Florida Intermediate Municipal Bond Fund...... 0.20 0.35 0.25 0.35 0.25
Nations Florida Municipal Bond Fund................... 0.20 0.53 0.25 0.37 0.25
Nations Georgia Intermediate Municipal Bond Fund...... 0.20 0.35 0.25 0.35 0.25
Nations Georgia Municipal Bond Fund................... 0.20 0.53 0.25 0.37 0.25
Nations Maryland Intermediate Municipal Bond Fund..... 0.20 0.35 0.25 0.35 0.25
Nations Maryland Municipal Bond Fund.................. 0.20 0.53 0.25 0.37 0.25
Nations North Carolina Intermediate Municipal Bond
Fund................................................ 0.20 0.35 0.25 0.35 0.25
Nations North Carolina Municipal Bond Fund............ 0.20 0.53 0.25 0.37 0.25
Nations South Carolina Intermediate Municipal Bond
Fund................................................ 0.20 0.35 0.25 0.35 0.25
Nations South Carolina Municipal Bond Fund............ 0.20 0.53 0.25 0.37 0.25
Nations Tennessee Intermediate Municipal Bond Fund.... 0.20 0.35 0.25 0.35 0.25
Nations Tennessee Municipal Bond Fund................. 0.20 0.53 0.25 0.37 0.25
Nations Texas Intermediate Municipal Bond Fund........ 0.20 0.35 0.25 0.35 0.25
Nations Texas Municipal Bond Fund..................... 0.20 0.53 0.25 0.37 0.25
Nations Virginia Intermediate Municipal Bond Fund..... 0.20 0.35 0.25 0.35 0.25
Nations Virginia Municipal Bond Fund.................. 0.20 0.53 0.25 0.37 0.25
</TABLE>
* In addition, a shareholder servicing plan has been adopted for the Investor A
Shares of the Nations Short-Term Municipal Income Fund. For the six months
ended September 30, 1997, no fees were incurred by the Fund pursuant to the
plan.
** The Investor B Distribution Plan and Investor C Distribution Plan rates
changed effective August 1, 1997.
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank and NBAI.
155
<PAGE> 159
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
4. PURCHASES AND SALES OF SECURITIES.
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the six months ended September 30, 1997 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------------
<S> <C> <C>
Nations Short-Term Municipal Income Fund.......................................... $ 81,011,491 $ 44,485,944
Nations Intermediate Municipal Bond Fund.......................................... 152,225,095 127,402,035
Nations Municipal Income Fund..................................................... 94,748,209 98,947,897
Nations Florida Intermediate Municipal Bond Fund.................................. 23,327,191 12,454,027
Nations Florida Municipal Bond Fund............................................... 10,228,649 4,185,779
Nations Georgia Intermediate Municipal Bond Fund.................................. 23,029,206 18,816,832
Nations Georgia Municipal Bond Fund............................................... 4,293,255 4,260,961
Nations Maryland Intermediate Municipal Bond Fund................................. 13,472,457 5,873,779
Nations Maryland Municipal Bond Fund.............................................. 5,723,793 2,440,707
Nations North Carolina Intermediate Municipal Bond Fund........................... 16,390,221 11,065,044
Nations North Carolina Municipal Bond Fund........................................ 3,363,077 1,954,353
Nations South Carolina Intermediate Municipal Bond Fund........................... 17,963,522 16,009,321
Nations South Carolina Municipal Bond Fund........................................ 1,499,120 1,425,394
Nations Tennessee Intermediate Municipal Bond Fund................................ 32,602,588 8,668,911
Nations Tennessee Municipal Bond Fund............................................. 1,274,469 1,558,215
Nations Texas Intermediate Municipal Bond Fund.................................... 21,894,799 25,198,285
Nations Texas Municipal Bond Fund................................................. 3,215,936 3,281,940
Nations Virginia Intermediate Municipal Bond Fund................................. 22,291,970 25,150,733
Nations Virginia Municipal Bond Fund.............................................. 3,859,928 1,487,049
</TABLE>
At September 30, 1997, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes were as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
-----------------------------
<S> <C> <C>
Nations Short-Term Municipal Income Fund............................................. $ 970,761 $ 3,250
Nations Intermediate Municipal Bond Fund............................................. 39,005,859 426,809
Nations Municipal Income Fund........................................................ 29,883,225 25,169
Nations Florida Intermediate Municipal Bond Fund..................................... 10,374,427 35,300
Nations Florida Municipal Bond Fund.................................................. 2,465,884 43,011
Nations Georgia Intermediate Municipal Bond Fund..................................... 6,470,659 21,479
Nations Georgia Municipal Bond Fund.................................................. 618,683 13,625
Nations Maryland Intermediate Municipal Bond Fund.................................... 3,670,675 12,099
Nations Maryland Municipal Bond Fund................................................. 793,011 695
Nations North Carolina Intermediate Municipal Bond Fund.............................. 9,326,627 1,400
Nations North Carolina Municipal Bond Fund........................................... 1,683,710 6,766
Nations South Carolina Intermediate Municipal Bond Fund.............................. 15,178,800 151,612
Nations South Carolina Municipal Bond Fund........................................... 813,970 9,981
Nations Tennessee Intermediate Municipal Bond Fund................................... 1,866,891 17,625
Nations Tennessee Municipal Bond Fund................................................ 536,189 --
Nations Texas Intermediate Municipal Bond Fund....................................... 18,127,719 --
Nations Texas Municipal Bond Fund.................................................... 1,099,324 2,085
Nations Virginia Intermediate Municipal Bond Fund.................................... 10,971,575 29,239
Nations Virginia Municipal Bond Fund................................................. 1,090,045 2,558
</TABLE>
5. SHARES OF BENEFICIAL INTEREST.
As of September 30, 1997, 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.
156
<PAGE> 160
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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 a straight-line basis over a period of five years from commencement
of operations. In the event that any of the shares issued by the Funds to their
sponsor prior to the commencement of the Funds' public offering ("initial
shares") are redeemed during such amortization period by any holder thereof, the
Funds will be reimbursed by the holder for any unamortized organization costs in
the same proportion as the number of initial shares redeemed bears to the number
of initial shares outstanding at the time of redemption. All such costs for
Nations Municipal Income Fund, Nations Maryland Intermediate Municipal Bond Fund
and Nations Virginia Intermediate Municipal Bond Fund have been fully amortized.
7. LINE OF CREDIT.
The Trust participates in an uncommitted line of credit provided by BONY under a
line of credit agreement dated February 28, 1997 (the "Agreement"). Advances
under the Agreement are taken primarily for temporary or emergency purposes,
including the meeting of redemption requests that otherwise might require the
untimely disposition of securities. Under the Agreement, each Fund may borrow up
to the lesser of $25 million or 25% of its net assets. Interest on borrowings is
payable at the Federal Funds Rate plus 0.50% on an annualized basis. The
Agreement requires, among other things, that each participating Fund maintain a
ratio of no less than 4 to 1 net assets (not including funds borrowed pursuant
to the Agreement) to the aggregate amount of indebtedness pursuant to the
Agreement.
Borrowings for the six months ended September 30, 1997, by the Funds under the
Agreements are disclosed below:
<TABLE>
<CAPTION>
AMOUNT
OUTSTANDING AVERAGE
AT MAXIMUM AVERAGE DEBT INTEREST
SEPTEMBER 30, AMOUNT AMOUNT AVERAGE PER RATE INTEREST
FUND 1997 OUTSTANDING OUTSTANDING SHARES SHARE HIGH LOW EXPENSE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Short-Term Municipal
Income Fund.................. -- $2,100,000 $26,776 9,175,316 $.0029 6.11% 5.99% $ 825
Nations Intermediate Municipal
Bond Fund.................... -- 2,100,000 26,776 41,790,090 .0006 5.99% 5.93% 811
Nations Municipal Income
Fund......................... -- 100,000 1,093 27,032,441 .0000 (a) 6.32% 6.03% 34
Nations Florida Intermediate
Municipal Bond Fund.......... -- 500,000 2,732 9,748,682 .0009 6.00% 6.00% 83
Nations Georgia Intermediate
Municipal Bond Fund.......... -- 500,000 11,475 8,034,661 .0014 6.16% 5.96% 351
Nations Georgia Municipal Bond
Fund......................... -- 100,000 5,464 1,670,193 .0033 6.09% 5.86% 166
Nations North Carolina
Municipal Bond Fund.......... -- 400,000 2,186 2,931,723 .0007 5.98% 5.98% 66
Nations South Carolina
Intermediate Municipal Bond
Fund......................... -- 300,000 9,836 12,109,829 .0008 6.12% 5.96% 299
Nations South Carolina
Municipal Bond Fund.......... -- 200,000 8,743 1,824,952 .0048 6.08% 5.81% 266
Nations Tennessee Intermediate
Municipal Bond Fund.......... -- 800,000 13,115 12,656,010 .0010 6.03% 5.83% 394
Nations Tennessee Municipal
Bond Fund.................... -- 200,000 2,426 933,400 .0026 6.15% 5.98% 75
Nations Texas Municipal Bond
Fund......................... -- 200,000 9,836 1,674,119 .0059 6.46% 5.90% 303
Nations Virginia Intermediate
Municipal Bond Fund.......... -- 900,000 25,683 20,572,057 .0012 6.32% 5.97% 794
</TABLE>
- ---------------
(a) The amount represents less than $0.0001 per share.
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the six months
ended September 30, 1997.
157
<PAGE> 161
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
8. CAPITAL LOSS CARRYFORWARD.
At March 31, 1997, the following Funds had available for Federal income tax
purposes the following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
NAME OF FUND 2002 2003 2004 2005
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nations Short-Term Municipal Income Fund....................... $269,453 $ 373,533 -- --
Nations Intermediate Municipal Bond Fund....................... -- 51,519 -- --
Nations Municipal Income Fund.................................. 913,512 2,394,822 -- --
Nations Florida Intermediate Municipal Bond Fund............... 216,636 752,907 -- $ 22,078
Nations Florida Municipal Bond Fund............................ 531,197 354,485 -- 133,293
Nations Georgia Intermediate Municipal Bond Fund............... -- 278,109 -- --
Nations Georgia Municipal Bond Fund............................ 137,330 222,938 -- --
Nations Maryland Intermediate Municipal Bond Fund.............. -- 983,734 -- --
Nations Maryland Municipal Bond Fund........................... 31,592 4,504 -- 49,878
Nations North Carolina Intermediate Municipal Bond Fund........ -- 274,366 -- --
Nations North Carolina Municipal Bond Fund..................... 358,960 425,261 -- 206,767
Nations South Carolina Intermediate Municipal Bond Fund........ -- 223,578 -- --
Nations Tennessee Intermediate Municipal Bond Fund............. 254,343 53,285 -- 1,009
Nations Tennessee Municipal Bond Fund.......................... 30,632 174,808 -- --
Nations Texas Intermediate Municipal Bond Fund................. 531,242 474,023 -- --
Nations Texas Municipal Bond Fund.............................. 604,685 131,901 -- --
Nations Virginia Intermediate Municipal Bond Fund.............. -- 742,427 -- --
Nations Virginia Municipal Bond Fund........................... 514,704 77,074 $12,358 62,619
</TABLE>
Under the current tax law, capital losses realized after October 31, may be
deferred and treated as occurring on the first day of the following fiscal year.
For the year ended March 31, 1997, the following Funds have elected to defer
losses occurring between November 1, 1996 and March 31, 1997 under these rules:
<TABLE>
<CAPTION>
POST-OCTOBER CAPITAL
SHORT TERM LONG TERM
LOSS DEFERRAL (GAIN)/LOSS DEFERRAL
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nations Intermediate Municipal Bond Fund................................ $36,615 $ 55,281
Nations Florida Intermediate Municipal Bond Fund........................ 16,498 (7,678)
Nations Florida Municipal Bond Fund..................................... 3,655 110,133
Nations North Carolina Intermediate Municipal Bond Fund................. 52,850 19,948
Nations Tennessee Intermediate Municipal Bond Fund...................... -- 24
Nations Texas Intermediate Municipal Bond Fund.......................... -- 5,897
</TABLE>
9. REORGANIZATIONS.
On August 8, 1997 and August 22, 1997, certain Nations Funds, as listed below
(each an "Acquiring Fund"), acquired the assets and certain liabilities of the
Nations Common Trust Funds, also listed below (each an "Acquired Fund"), in a
tax-free exchange for shares of the Acquiring Fund, pursuant to a plan of
reorganization approved by the Acquired Fund's shareholders. Total shares issued
by the Acquiring Fund, the value of the shares issued by the Acquiring Fund, the
total
158
<PAGE> 162
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
net assets of the Acquired Fund and the Acquiring Fund, the total net assets of
each Acquiring Fund after the acquisition 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 Nations
Intermediate Common
Municipal Trust
Bond Intermediate
Fund Municipal
Fund 08/08/97 49,075,326 $502,040,580 $502,040,580 $350,318,892 $852,359,472 $23,696,304
Nations
Common
Nations Trust
Municipal Municipal
Income Bond
Fund Fund 08/08/97 14,127,038 159,211,714 159,211,714 327,035,347 486,247,061 9,642,639
Nations
Common
Nations Trust
Florida Florida
Intermediate Tax-
Municipal Exempt
Bond Income
Fund Fund 08/08/97 12,806,781 136,392,214 136,392,214 69,327,604 205,719,818 7,072,545
Nations
Nations Common
Georgia Trust
Intermediate Bank
Municipal South
Bond Tax-Free
Fund Fund 08/08/97 2,405,397 26,050,446 26,050,446 66,470,897 92,521,343 813,939
Nations Nations
Georgia Common
Intermediate Trust
Municipal Georgia
Bond Municipal
Fund Fund 08/08/97 4,858,036 52,612,527 52,612,527 92,521,343 145,133,870 813,939
Nations
Common
Nations Trust
North North
Carolina Carolina
Intermediate Tax-
Municipal Exempt
Bond Income
Fund Fund 08/08/97 13,384,781 141,744,830 141,744,830 42,540,924 184,285,754 6,801,572
Nations
Common
Nations Trust Old
South Colony
Carolina South
Intermediate Carolina
Municipal Tax-
Bond Exempt
Fund Fund 08/08/97 6,420,542 68,635,591 68,635,591 70,529,321 139,164,912 5,052,630
Nations
South Nations
Carolina Common
Intermediate Trust
Municipal South
Bond Carolina
Fund Municipal 08/08/97 12,876,466 137,649,419 137,649,419 139,164,912 276,814,331 5,052,630
</TABLE>
159
<PAGE> 163
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
VALUE OF TOTAL NET
SHARES ISSUED SHARES ISSUED ASSETS OF
ACQUISITION BY ACQUIRING BY ACQUIRING ACQUIRED
ACQUIRING FUND ACQUIRED FUND DATE FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nations Tennessee Nations Common
Intermediate Municipal Trust Tennessee
Bond Fund Municipal Fund 08/08/97 2,471,206 $ 25,428,706 $ 25,428,706
Nations Tennessee Nations Common
Intermediate Municipal Trust Tennessee
Bond Fund Municipal Fund 08/08/97 34,435,428 357,784,093 357,784,093
<CAPTION>
TOTAL NET TOTAL NET ASSETS
ASSETS OF OF ACQUIRING ACQUIRED FUND
ACQUIRING FUND AFTER UNREALIZED
ACQUIRING FUND ACQUIRED FUND FUND ACQUISITION APPRECIATION
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nations Tennessee Nations Common
Intermediate Municipal Trust Tennessee
Bond Fund Municipal Fund $20,695,671 $ 46,124,377 $ 1,048,569
Nations Tennessee Nations Common
Intermediate Municipal Trust Tennessee
Bond Fund Municipal Fund 30,219,011 388,003,104 15,314,786
</TABLE>
On May 16, 1997, certain Nations Funds, as listed below (each an "Acquiring
Fund"), acquired the assets and certain liabilities of The Pilot Funds, also
listed below (each an "Acquired Fund"), in a tax-free exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Fund's shareholders. Total shares issued by the Acquiring Fund, the value of the
shares issued by the Acquiring Fund, the total net assets of the Acquired Fund
and the Acquiring Fund, the total net assets of each Acquiring Fund after the
acquisition 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
SHARES ISSUED SHARES ISSUED ASSETS OF
ACQUISITION BY ACQUIRING BY ACQUIRING ACQUIRED
ACQUIRING FUND ACQUIRED FUND DATE FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nations Intermediate Pilot Intermediate
Municipal Bond Fund Municipal Fund 05/16/97 21,685,851 $218,884,238 $218,884,238
Nations Municipal Pilot Municipal
Income Fund Bond Fund 05/16/97 18,253,630 201,343,712 201,343,712
<CAPTION>
TOTAL NET TOTAL NET ASSETS
ASSETS OF OF ACQUIRING ACQUIRED FUND
ACQUIRING FUND AFTER UNREALIZED
ACQUIRING FUND ACQUIRED FUND FUND ACQUISITION APPRECIATION
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nations Intermediate Pilot Intermediate
Municipal Bond Fund Municipal Fund $119,774,610 $338,658,848 $5,841,379
Nations Municipal Pilot Municipal
Income Fund Bond Fund 109,547,454 310,891,166 9,978,682
</TABLE>
160
<PAGE> 164
[GRAPHIC DEPICTING BASKETS]
<PAGE> 165
--------------------
BULK RATE
[NATIONS FUNDS LOGO] U.S. POSTAGE
PAID
P.O. Box 32602 N READING, MA
Charlotte, NC 28234-4602 PERMIT NO.
Toll Free 1-800-982-2271 105
--------------------
SAR2 97495 9/97
