<PAGE> 1
[GRAPHIC: PHOTO COLLAGE W/COMPUTER CHIP
AND OYSTER SHELL]
Nations Capital
Income Fund
Nations Balanced
Assets Fund
Nations Asset
Allocation Fund
Nations Value Fund
Nations Equity
Income Fund
Nations Equity
Index Fund
Nations Marsico
Growth & Income Fund
Nations
Blue Chip Fund
Nations Strategic
Equity Fund
Nations Capital
Growth Fund
Nations Disciplined
Equity Fund
Nations Marsico
Focused Equities Fund
Nations Emerging
Growth Fund
Nations
Small Company
Growth Fund
DOMESTIC
STOCK FUNDS
Semiannual report for the period
ended September 30, 1999
Nations Funds
<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., which is not affiliated with Bank of
America 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: Banc of America Advisors, Inc.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 3
PRESIDENTS'
MESSAGE
DEAR SHAREHOLDER:
We're rapidly approaching the end of the year, and
the end of the twentieth century. While we all look
forward to the beginning of the next century, let's
first take a look back at the last six months and
then we'll discuss how Nations Funds is positioned as
we head into the year 2000.
RIDING THE WAVES IN THE U.S.
The last six months offered a snapshot of what we
often refer to as market volatility. And when we say
market volatility, we mean the ups and downs of the
U.S. stock market. Basically, what went up in the
second quarter of the year fell right back down in
the third quarter. During the spring, we witnessed
another Dow Jones Industrial Average*
milestone -- crossing the 11,000 mark -- and we saw a
broadening in the stock market, as value stocks and
small-company stocks came back into favor. This was a
change from the past few years where rallies have
been led by a narrow group of large-company stocks.
However, strong economic growth -- combined with
continued low inflation and low
unemployment -- caused the Federal Reserve Board to
raise interest rates twice by a total of 0.50%. These
rate hikes (on June 30 and August 24) caused the
markets to resemble the rough surf of the Atlantic
during one of our many hurricanes this past summer.
(In fact, Hurricane Floyd actually shut down Wall
Street in mid-September with torrential rains and
high winds.) At any rate, the stock market, as
represented by the Standard & Poor's 500 Composite
Stock Price Index (S&P 500)**, finished the third
quarter at 5.36% (year-to-date through September 30,
1999), 10% off its August high, with the average
stock in the S&P 500 off 20% from its high.
A BRIGHTER PICTURE OVERSEAS
International stock markets performed well in the
second quarter and actually outperformed the U.S. for
the first time in a number of years. The Morgan
Stanley Capital International (MSCI) Europe,
Australasia and Far East (EAFE) Index gained 4.4% in
the third quarter. A resurgent Japanese economy
helped to push international equity markets higher.
This is yet another example of the importance of
diversification. Investors investing exclusively in
the U.S. could miss out on opportunities overseas.
One way to ensure that your portfolio is properly
diversified is to seek the professional advice of an
investment professional. An investment professional
can help explain the additional risks involved in
international investing, as well as educate you on
the potential rewards that have historically come
from a diversified portfolio including international
investments.
* The Dow Jones Industrial Average is a
price-weighted index of 30 of the largest, most
widely held stocks traded on the New York Stock
Exchange. It is unmanaged and unavailable for
investment.
** The Standard & Poor's 500 Composite Stock Price
Index is an unmanaged index of 500 widely held
common stocks. It is unavailable for investment.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
PRESIDENTS'
MESSAGE continued...
STAY THE COURSE
While the ride has been bumpy over the last six
months, we believe the best course of action for an
investor is to stay focused on your long-term goals
and remain invested. We understand that Y2K has been
on investors' minds for quite some time now. As most
Americans have come to realize, substantial efforts
have been made by companies in the U.S. and abroad to
try to ensure that the Y2K problem will be avoided.
Regardless, Y2K will come and go and those investors
that stick to their long-term goals, as history has
shown, stand a better chance of attaining them.
WHAT'S NEW AT NATIONS FUNDS
We've made some great strides during the past six
months and are poised to make Nations Funds a
stronger presence in the mutual fund industry in the
new year. We completed the largest merger in mutual
fund history on May 21 when we combined Pacific
Horizon Funds with Nations Funds. Combining these two
entities provides you with more investment choices
and a broader range of investment expertise. This is
part of our ongoing commitment to providing you with
the best products and services, and helping you
pursue a lifetime of financial goals.
In fact, our selection of mutual funds continued to
grow as we introduced Nations Strategic Equity Fund,
a large-company stock fund managed for tax
efficiency, on August 1. This fund is managed by Bank
of America Investment Management -- a Nations Funds
Manager of Distinction(SM).
We look forward to the opportunities ahead of us in
the new year and to making your investment experience
with Nations Funds a successful one. Should you have
any questions or comments on your semiannual report,
please contact your investment professional or call
us at 1.800.321.7854. You can also visit us online at
www.nations-funds.com.
Once again, thank you for being a part of the Nations
Funds family.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman of the Board
/s/ Robert H. Gordon
Robert H. Gordon
President, Banc of America Advisors, Inc.
September 30, 1999
<PAGE> 5
Table
of
contents
<TABLE>
<S> <C>
NATIONS FUNDS SPECTRUM 2
FINANCIAL STATEMENTS
Statements of net assets
- Nations Capital Income Fund 3
- Nations Balanced Assets Fund 6
- Nations Asset Allocation Fund 10
- Nations Value Fund 19
- Nations Equity Income Fund 22
- Nations Equity Index Fund 25
- Nations Marsico Growth & Income Fund 32
- Nations Blue Chip Fund 34
- Nations Strategic Equity Fund 35
- Nations Capital Growth Fund 37
- Nations Disciplined Equity Fund 39
- Nations Marsico Focused Equities Fund 41
- Nations Emerging Growth Fund 43
- Nations Small Company Growth Fund 45
Statements of operations 48
Statements of changes in net assets 52
Schedules of capital stock activity 58
Financial highlights 72
Notes to financial statements 100
Statement of net assets -- Nations Master Investment Trust
- Nations Blue Chip Portfolio 108
Statement of operations 111
Statement of changes in net assets 112
Supplementary data 112
Notes to financial statements 113
</TABLE>
<TABLE>
<S> <C>
---------------------------------------------------------------------------------
NATIONS FUNDS [Dalbar Logo]
RECOGNIZED FOR
OUTSTANDING DALBAR, Inc., is a well-respected research firm
CUSTOMER SERVICE that measures customer service levels and
establishes benchmarks in the financial services
In recognition of our industry.
commitment to retail
shareholders through
consistently providing
superior customer service,
Nations Funds was awarded
DALBAR Key Honors in 1997
and 1998.
---------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
THE NATIONS FUNDS FAMILY OF FUNDS
LOWER
RISK/
REWARD
POTENTIAL
MONEY
MARKET
FUNDS
Nations Prime Fund
Nations Government
Money Market Fund
Nations Treasury Fund
Nations Tax Exempt
Fund
FIXED
INCOME
FUNDS
INCOME FUNDS
Nations Diversified
Income Fund
Nations U.S. Government
Bond Fund
Nations Strategic
Fixed Income Fund
Nations Intermediate
Bond Fund
Nations Government
Securities Fund
Nations Short-
Intermediate
Government Fund
Nations Short-Term
Income Fund
TAX-EXEMPT
INCOME FUNDS
Nations Municipal
Income Fund
Nations State-Specific
Long-Term Municipal
Bond Funds (CA, FL, GA,
MD, NC, SC, TN, TX, VA)
Nations Intermediate
Municipal Bond Fund
Nations State-Specific
Intermediate Municipal
Bond Funds (FL, GA, MD,
NC, SC, TN, TX, VA)
Nations Short-Term
Municipal Income Fund
DOMESTIC
EQUITY
FUNDS
GROWTH FUNDS
Nations Small Company
Growth Fund
Nations Emerging
Growth Fund
Nations Marsico
Focused Equities Fund
Nations Disciplined
Equity Fund
Nations Capital
Growth Fund
Nations Strategic
Equity Fund
Nations Blue Chip Fund
GROWTH AND
INCOME FUNDS
Nations Marsico Growth
& Income Fund
Nations Equity
Income Fund
Nations Value Fund
Nations Asset
Allocation Fund
Nations Balanced
Assets Fund
Nations Capital
Income Fund
INTERNATIONAL
FUNDS
Nations Emerging
Markets Fund
Nations International
Growth Fund
Nations International
Equity Fund
Nations International
Value Fund
HIGHER
RISK/
REWARD
POTENTIAL
INDEX FUNDS
Nations Equity Index Fund
Nations Managed Index Fund
Nations Managed SmallCap Index Fund
Nations Managed SmallCap Value Index Fund
Nations Managed Value Index Fund
ASSET ALLOCATION PORTFOLIOS
Nations LifeGoal Balanced Growth Portfolio
Nations LifeGoal Growth Portfolio
Nations LifeGoal Income and Growth Portfolio
<PAGE> 7
NATIONS FUNDS
Nations Capital Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 12.5%
BANKING -- 0.5%
170,000 Sovereign Bancorp, Inc. ................. $ 1,546
--------
COMPUTER RELATED -- 0.4%
50,000 Hutchinson Technology, Inc.++............ 1,350
--------
COMPUTER SERVICES -- 0.3%
20,000 Affiliated Computer Services, Inc.++..... 813
--------
ELECTRICAL COMPONENTS -- 0.3%
12,000 Sanmina Corporation++.................... 929
--------
INSURANCE -- 0.4%
60,000 Frontier Insurance Group, Inc. .......... 525
30,000 Penn Treaty American Corporation......... 626
--------
1,151
--------
MANUFACTURING -- 0.5%
75,000 Mark IV Industries, Inc. ................ 1,481
--------
NETWORKING EQUIPMENT AND PRODUCTS -- 1.5%
70,000 Cisco Systems, Inc.++.................... 4,799
--------
OIL -- DOMESTIC -- 0.6%
90,000 Occidental Petroleum Corporation......... 2,081
--------
OIL -- INTERNATIONAL -- 1.0%
28,000 BP Amoco plc, ADR........................ 3,103
--------
RESTAURANTS AND LODGING -- 1.1%
85,000 McDonald's Corporation................... 3,655
--------
RETAIL -- SPECIALTY -- 0.6%
70,000 Nordstrom Inc. .......................... 1,890
--------
SEMICONDUCTORS -- 4.0%
63,000 Intel Corporation........................ 4,682
170,000 Photronics Inc.++........................ 3,814
70,000 Xilinx, Inc.++........................... 4,587
--------
13,083
--------
TELECOMMUNICATIONS -- 0.5%
18,000 Motorola, Inc. .......................... 1,584
--------
UTILITIES -- TELEPHONE -- 0.8%
60,000 AT&T Corporation......................... 2,610
--------
TOTAL COMMON STOCKS
(Cost $28,276)......................... 40,075
--------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
- ---------
<C> <S> <C>
CONVERTIBLE BONDS AND NOTES -- 52.9%
ADVERTISING AND MARKETING SERVICES -- 2.6%
$ 3,600 Interpublic Group of Companies, Inc.,
1.870% 06/01/06........................ 3,312
4,000 Lamar Advertising Company,
5.250% 09/15/06........................ 5,070
--------
8,382
--------
AUTOMOBILE PARTS MANUFACTURERS -- 0.8%
3,000 Standard Motor Products, Inc.,
6.750% 07/15/09........................ 2,624
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ---------------------------------------------------------------
<C> <S> <C>
COMPUTER RELATED -- 2.2%
$ 8,400 Hewlett-Packard Company,
3.200%** 10/14/17...................... $ 5,082
1,700 Hutchinson Technology Inc.,
6.000% 03/15/05........................ 1,917
--------
6,999
--------
COMPUTER SERVICES -- 2.8%
2,850 Affiliated Computer Services, Inc.,
4.000% 03/15/05........................ 3,263
5,200 Safeguard Scientifics, Inc.,
5.000% 06/15/06........................ 5,779
--------
9,042
--------
COMPUTER SOFTWARE -- 3.0%
12,350 Citrix Systems, Inc.,
5.390%** 03/22/19...................... 5,897
4,000 Siebel Systems, Inc.,
5.500% 09/15/06........................ 3,845
--------
9,742
--------
ELECTRONICS -- 5.2%
5,660 Atmel Corporation,
3.250% 06/01/02........................ 6,643
2,600 Benchmark Electronics Inc.,
6.000% 08/15/06........................ 2,743
2,695 Sanmina Corporation,
4.250% 05/01/04........................ 3,012
6,825 Solectron Corporation,
4.000%** 01/27/19...................... 4,197
--------
16,595
--------
ENERGY -- 1.7%
4,600 Loews Corporation,
3.125% 09/15/07........................ 3,870
1,500 Seacor Holdings, Inc.,
5.375% 11/15/06........................ 1,449
--------
5,319
--------
FINANCIAL SERVICES -- 1.0%
4,300 BankAtlantic Bancorp, Inc.,
5.625% 12/01/07........................ 3,311
--------
HEALTHCARE -- 3.9%
2,790 Alza Corporation,
5.000% 05/01/06........................ 3,348
8,500 Elan International Finance Corporation,
3.280%** 12/14/18...................... 4,760
8,800 Roche Holdings, Inc.,
5.800%** 05/06/12...................... 4,411
--------
12,519
--------
INSURANCE -- 1.5%
4,180 Penn Treaty American Corporation,
6.24% 12/01/03......................... 3,903
890 Penn Treaty American Corporation,
6.250% 12/01/03........................ 831
--------
4,734
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS FUNDS
Nations Capital Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ---------------------------------------------------------------
<C> <S> <C>
INTERNET -- 3.3%
$ 2,000 Cnet, Inc.,
5.000% 03/01/06........................ $ 3,240
2,000 Doubleclick Inc.,
4.750% 03/15/06........................ 3,115
4,000 VerticalNet, Inc.,
5.250% 09/27/04........................ 4,200
--------
10,555
--------
MANUFACTURING -- 0.6%
2,135 Mark IV Industries, Inc.,
4.750% 11/01/04........................ 1,847
--------
MEDIA -- 1.2%
2,800 Clear Channel Communications, Inc.,
2.625% 04/01/03........................ 3,934
--------
MEDICAL PRODUCTS AND SUPPLIES -- 1.2%
4,000 Affymetrix, Inc.,
5.000% 10/01/06........................ 3,940
--------
METALS AND MINING -- 1.6%
7,350 Agnico-Eagle Mines Ltd.,
3.500% 01/27/04........................ 5,072
--------
OIL -- INTERNATIONAL -- 1.4%
4,500 Devon Energy Corporation,
4.950% 08/15/08........................ 4,444
--------
OIL FIELD SERVICES & EQUIPMENT -- 0.9%
2,900 Seacor Holdings, Inc.,
5.375% 11/15/06........................ 2,802
--------
RETAIL -- SPECIALTY -- 1.2%
1,300 Home Depot, Inc.,
3.250% 10/01/01........................ 3,770
--------
SEMICONDUCTORS -- 3.6%
1,000 Lam Research Corporation,
5.000% 09/01/02........................ 998
3,000 LSI Logic Corporation,
4.250% 03/15/04........................ 5,501
4,300 Micron Technology, Inc.,
7.000% 07/01/04........................ 5,058
--------
11,557
--------
TELECOMMUNICATIONS -- 8.6%
5,000 American Tower Corporation,
2.500% 10/15/09........................ 3,550
4,500 Bell Atlantic Financial Services,
5.750% 04/01/03........................ 4,500
5,000 Bell Atlantic Financial Services,
4.250% 09/15/05........................ 5,206
3,550 ITC Deltacom, Inc.,
4.500% 05/15/06........................ 4,291
3,350 Motorola, Inc.,
1.870%** 09/27/13...................... 3,291
4,300 Nextel Communications, Inc.,
4.750% 07/01/07........................ 6,783
--------
27,621
--------
UTILITIES -- ELECTRIC -- 1.2%
2,950 AES Corporation,
4.500% 08/15/05........................ 3,776
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ---------------------------------------------------------------
<C> <S> <C>
UTILITIES -- TELEPHONE -- 3.4%
$ 4,300 Telefonos de Mexico SA,
4.250% 06/15/04........................ $ 4,096
11,000 US Cellular Corporation,
5.750%** 06/15/15...................... 6,930
--------
11,026
--------
TOTAL CONVERTIBLE
BONDS AND NOTES
(Cost $149,146)........................ 169,611
--------
<CAPTION>
SHARES
- ---------
<C> <S> <C>
PREFERRED STOCKS -- 33.8%
COMPUTER SOFTWARE -- 0.9%
30,000 Microsoft Corporation.................... 3,021
--------
CONTAINERS AND PACKAGING -- 1.5%
40,000 Owens-Illinois, Inc. .................... 1,310
68,000 Sealed Air Corporation++................. 3,451
--------
4,761
--------
ELECTRIC POWER -- 2.3%
224,500 Avista Corporation....................... 3,929
82,000 Nisource Inc. ........................... 3,516
--------
7,445
--------
ENERGY -- 1.9%
42,000 CMS Energy Corporation................... 1,536
90,000 El Paso Energy Capital Trust I........... 4,713
--------
6,249
--------
ENTERTAINMENT -- 1.0%
30,000 Houston Industries Inc. ................. 3,060
--------
FINANCIAL SERVICES -- 4.8%
177,300 CNB Capital Trust I...................... 5,185
50,000 Frontier Financing Trust................. 1,881
62,000 Frontier Financing Trust................. 2,333
380,000 Philadelphia Consolidated Holdings
Corporation............................ 2,446
70,000 Protective Life Corporation Capital
Trust II............................... 3,417
--------
15,262
--------
FOOD PRODUCERS -- 0.7%
49,000 Ralston Purina Company................... 2,303
--------
FOREST AND PAPER PRODUCTS -- 1.0%
65,000 International Paper Capital Trust........ 3,364
--------
HOUSEHOLD PRODUCTS -- 0.5%
37,400 Newell Financial Trust I................. 1,515
--------
INSURANCE -- 1.3%
175,000 AmerUs Life Holdings, Inc. .............. 4,058
--------
MANUFACTURING -- 1.2%
20,300 Fleetwood Capital Trust.................. 713
86,000 Fleetwood Capital Trust.................. 3,021
--------
3,734
--------
MEDIA -- 4.9%
21,000 Adelphia Communications.................. 3,701
25,000 AMFM Inc. ............................... 4,063
50,000 MediaOne Group, Inc. .................... 5,246
20,000 MediaOne Group, Inc. .................... 2,700
--------
15,710
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS FUNDS
Nations Capital Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
OIL -- DOMESTIC -- 2.6%
150,000 Coastal Corporation...................... $ 3,909
80,000 Unocal Corporation....................... 4,320
--------
8,229
--------
PRINTING AND PUBLISHING -- 1.1%
120,000 Readers Digest Association............... 3,390
--------
REAL ESTATE INVESTMENT TRUSTS (REITS) -- 1.2%
155,000 Apartment Investment and Management
Company................................ 3,817
--------
RESTAURANTS AND LODGING -- 1.0%
59,200 Wendy's Financing I...................... 3,345
--------
TECHNOLOGY -- 1.1%
100,000 Monsanto Company......................... 3,600
--------
TRANSPORTATION -- 1.3%
72,000 Union Pacific Capital Trust.............. 3,285
18,000 Union Pacific Capital Trust.............. 821
--------
4,106
--------
UTILITIES -- ELECTRIC -- 2.3%
25,000 MidAmerica Capital Trust................. 1,113
70,000 MidAmerica Capital Trust II.............. 3,115
65,000 Texas Utilities Company.................. 3,205
--------
7,433
--------
UTILITIES -- TELEPHONE -- 1.2%
80,000 Citizens Utilities Company++............. 3,980
--------
TOTAL PREFERRED STOCKS
(Cost $111,830)........................ 108,382
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.8%
(Cost $5,817)
5,817 Nations Cash Reserves#................. 5,817
--------
TOTAL INVESTMENTS
(Cost $295,069*).............. 101.0% 323,885
--------
OTHER ASSETS AND
LIABILITIES (NET)............. (1.0)%
Receivable for investment securities
sold................................. $ 5,695
Receivable for Fund shares sold........ 206
Dividends receivable................... 702
Interest receivable.................... 1,137
Prepaid expenses....................... 32
Payable for Fund shares redeemed....... (709)
Investment advisory fee payable........ (167)
Administration fee payable............. (62)
Shareholder servicing and distribution
fees payable......................... (84)
Distributions payable.................. (1,671)
Payable for investment securities
purchased............................ (8,316)
Accrued Trustees'/Directors' fees
and expenses......................... (5)
Accrued expenses and other
liabilities.......................... (112)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ (3,354)
--------
NET ASSETS...................... 100.0% $320,531
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 1,005
Accumulated net realized gain on
investments sold..................... 27,930
Net unrealized appreciation of
investments.......................... 28,816
Paid-in capital........................ 262,780
--------
NET ASSETS............................. $320,531
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($6,900,433 / 380,370 shares
outstanding)......................... $18.14
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($306,364,202 / 16,878,944
shares outstanding).................. $18.15
======
Maximum sales charge................... 5.75%
Maximum offering price per share....... $19.26
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($5,335,331 / 294,911 shares
outstanding)......................... $18.09
======
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($1,930,812 / 106,020 shares
outstanding)......................... $18.21
======
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $45,214 and gross
depreciation of $16,398 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$295,069.
** Rate represents annualized yield at date of purchase.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 2.0%
ASSET-BACKED -- AUTO LOANS -- 0.2%
$ 250 Premier Auto Trust, Series 1998-1,
Class B,
5.920% 10/06/04...................... $ 246
-------
ASSET-BACKED -- CREDIT CARD RECEIVABLES -- 0.3%
325 Standard Credit Card Master Trust,
Series 1995-9, Class B,
6.650% 10/07/07...................... 317
-------
ASSET-BACKED -- HOME EQUITY LOANS -- 1.5%
1,403 CS First Boston Mortgage Securities
Corporation, Series 1996-2, Class A4,
6.620% 02/25/18...................... 1,403
55 EQCC Home Equity Loan Trust, Series
1996-2, Class A2,
6.700% 09/15/08...................... 55
500 IMC Home Equity Loan Trust, Series
1997-7, Class A3,
6.540% 11/20/12...................... 496
-------
1,954
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,531)........................ 2,517
-------
<CAPTION>
SHARES
- ---------
<C> <S> <C>
COMMON STOCKS -- 61.2%
AEROSPACE AND DEFENSE -- 1.0%
24,675 Raytheon Company, Class B.............. 1,224
-------
APPAREL AND TEXTILES -- 0.2%
6,700 Jones Apparel Group, Inc.++............ 193
-------
AUTOMOBILE PARTS MANUFACTURERS -- 0.7%
30,700 Genuine Parts Company.................. 815
-------
AUTOMOBILES AND TRUCKS -- 1.4%
34,550 Ford Motor Company..................... 1,734
-------
BANKING -- 4.6%
16,300 Banc One Corporation................... 567
17,400 Bank of New York Inc................... 582
23,975 BankBoston Corporation................. 1,040
21,900 Chase Manhattan Corporation............ 1,651
54,800 Mellon Bank Corporation................ 1,849
-------
5,689
-------
BEVERAGES -- 1.4%
15,590 Anheuser-Busch Companies, Inc. ........ 1,092
20,850 PepsiCo, Inc. ......................... 631
-------
1,723
-------
CHEMICALS -- BASIC -- 0.9%
14,231 E.I. duPont de Nemours and Company..... 866
7,700 Eastman Chemical Company............... 308
-------
1,174
-------
COMPUTER RELATED -- 9.0%
19,250 Apple Computer Inc.++.................. 1,219
11,200 Comverse Technology Inc.++............. 1,056
47,100 Gateway Inc.++......................... 2,093
12,100 Honeywell Inc. ........................ 1,347
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ----------------------------------------------------------
<C> <S> <C>
COMPUTER RELATED -- (CONTINUED)
17,400 International Business Machines
Corporation.......................... $ 2,112
17,050 Sun Microsystems, Inc.++............... 1,586
43,100 Unisys Corporation++................... 1,945
-------
11,358
-------
CONGLOMERATE -- 1.3%
28,250 United Technologies Corporation........ 1,676
-------
CONSTRUCTION -- 1.5%
26,650 Centex Corporation..................... 788
35,050 Masco Corporation...................... 1,086
-------
1,874
-------
DIVERSIFIED -- 0.2%
2,800 Textron Inc. .......................... 217
-------
DRUGS -- 2.7%
26,750 Bristol-Myers Squibb Company........... 1,805
36,050 Schering-Plough Corporation............ 1,573
-------
3,378
-------
ELECTRIC POWER -- 2.2%
63,850 Energy East Corporation................ 1,516
33,750 Unicom Corporation..................... 1,247
-------
2,763
-------
FINANCIAL SERVICES -- 2.5%
29,775 Citigroup Inc. ........................ 1,311
31,900 Paine Webber Group, Inc. .............. 1,156
22,644 Washington Mutual, Inc. ............... 662
-------
3,129
-------
FOOD PRODUCERS -- 1.6%
8,550 General Mills Inc. .................... 694
14,300 Nabisco Group Holdings Corporation..... 215
12,050 Nabisco Holdings Corporation, Class
A.................................... 416
11,450 Quaker Oats Company.................... 708
-------
2,033
-------
FOREST AND PAPER PRODUCTS -- 0.7%
10,600 Boise Cascade Corporation.............. 386
9,500 International Paper Company............ 457
-------
843
-------
FURNITURE AND APPLIANCES -- 0.4%
7,000 Whirlpool Corporation.................. 457
-------
INSURANCE -- 3.9%
23,150 CIGNA Corporation...................... 1,800
29,300 Hartford Financial Services Group,
Inc. ................................ 1,198
48,700 Lincoln National Corporation Ltd. ..... 1,829
-------
4,827
-------
MANUFACTURING -- 0.2%
15,900 IMC Global, Inc. ...................... 232
-------
MEDICAL SERVICES -- 1.4%
83,700 HEALTHSOUTH Corporation++.............. 507
21,750 Wellpoint Health Networks, Inc.++...... 1,240
-------
1,747
-------
METALS AND MINING -- 0.3%
5,800 Phelps Dodge Corporation............... 319
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ----------------------------------------------------------
<C> <S> <C>
OFFICE EQUIPMENT -- 2.0%
31,400 Lexmark International Group, Inc.,
Class A++............................ $ 2,528
-------
OIL -- DOMESTIC -- 1.5%
33,613 Conoco, Inc. .......................... 920
33,100 USX-Marathon Group Inc. ............... 968
-------
1,888
-------
OIL -- INTERNATIONAL -- 5.0%
15,400 BP Amoco plc, ADR...................... 1,707
14,050 Exxon Corporation...................... 1,067
18,650 Mobil Corporation...................... 1,879
26,850 Royal Dutch Petroleum Company.......... 1,586
-------
6,239
-------
OIL FIELD SERVICES & EQUIPMENT -- 0.4%
11,800 Halliburton Company.................... 484
-------
RECREATION -- 0.7%
41,150 Hasbro, Inc. .......................... 882
-------
RETAIL -- FOOD -- 0.6%
32,400 Kroger Company++....................... 715
-------
RETAIL -- GENERAL -- 1.1%
31,050 Federated Department Stores, Inc.++.... 1,356
-------
RETAIL -- SPECIALTY -- 1.8%
16,900 AnnTaylor Stores Corporation++......... 691
54,150 TJX Companies Inc. .................... 1,519
-------
2,210
-------
SEMICONDUCTORS -- 0.8%
12,750 Intel Corporation...................... 947
-------
STEEL -- 1.4%
38,100 Bethlehem Steel Corporation++.......... 281
22,350 Nucor Corporation...................... 1,064
16,850 USX - U.S. Steel Group Inc............. 434
-------
1,779
-------
TOBACCO -- 0.7%
21,850 Philip Morris Companies Inc. .......... 747
4,733 R.J. Reynolds Tobacco Holdings,
Inc. ................................ 128
-------
875
-------
UTILITIES -- NATURAL GAS -- 0.9%
15,250 Coastal Corporation.................... 625
14,750 Williams Companies, Inc. .............. 552
-------
1,177
-------
UTILITIES -- TELEPHONE -- 6.2%
10,975 ALLTEL Corporation..................... 772
34,975 AT&T Corporation....................... 1,521
31,750 BellSouth Corporation.................. 1,429
24,075 GTE Corporation........................ 1,852
10,500 MCI Worldcom, Inc.++................... 755
27,400 SBC Communications Inc. ............... 1,399
-------
7,728
-------
TOTAL COMMON STOCKS
(Cost $68,408)....................... 76,213
-------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 16.6%
AEROSPACE AND DEFENSE -- 0.2%
$ 250 Raytheon Company,
6.750% 08/15/07...................... $ 241
--------
BANKING AND FINANCE -- 5.2%
500 FCB/NC Capital Trust I, Gtd. Notes,
8.050% 03/01/28...................... 465
1,000 First Union Corporation,
6.625% 06/15/04...................... 982
250 First Union Institutional Capital I,
8.040% 12/01/26...................... 242
500 GMAC, Deb.,
8.750% 07/15/05...................... 542
950 GMAC, Deb.,
5.850% 01/14/09...................... 876
250 GMAC, Deb.,
8.875% 06/01/10...................... 280
500 Goldman Sachs Group, LP,
6.625% 12/01/04(+)................... 495
500 Lehman Brothers Inc., Sr. Sub. Notes,
7.250% 04/15/03...................... 501
875 NYNEX Capital Funding,
7.630% 10/15/09...................... 945
750 Popular, Inc., MTN,
6.375% 09/15/03...................... 733
250 Union Planters Capital Trust,
8.200% 12/15/26...................... 244
250 Wells Fargo Capital I, Gtd. Notes,
7.960% 12/15/26...................... 244
--------
6,549
--------
ENTERTAINMENT -- 0.6%
720 Time Warner Inc.,
7.750% 06/15/05...................... 736
--------
FINANCIAL SERVICES -- 4.3%
435 Associates Corporation N.A.,
6.250% 11/01/08...................... 410
850 Chrysler Financial Company, LLC,
6.950% 03/25/02...................... 857
945 City Group Holdings,
6.500% 06/14/02...................... 936
760 Household Finance Corporation,
5.875% 02/01/09...................... 684
1,000 Morgan Stanley Dean Witter,
5.625% 04/12/02...................... 975
735 Paine Webber Group, Inc.,
6.375% 05/15/04...................... 710
1,000 Salomon Smith Barney Holdings,
6.250% 06/15/05...................... 963
--------
5,535
--------
HEALTHCARE -- 0.2%
250 HEALTHSOUTH Corporation, Sr. Notes,
6.875% 06/15/05...................... 224
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL -- 0.6%
$ 250 USA Waste Services Inc.,
7.125% 10/01/07...................... $ 226
500 Xerox Capital Trust I, Gtd. Notes,
8.000% 02/01/27...................... 473
--------
699
--------
INSURANCE -- 1.0%
250 American Re Corporation, Sr. Notes,
7.450% 12/15/26...................... 240
1,000 Aon Corporation,
7.400% 10/01/02...................... 1,019
--------
1,259
--------
PROFESSIONAL SERVICES -- 0.5%
650 Service Corporation International,
6.000% 12/15/05...................... 572
--------
TELECOMMUNICATIONS -- 0.2%
250 GTE Corporation,
6.600% 09/22/05...................... 246
--------
TRANSPORTATION -- 0.8%
250 ERAC USA Finance Company,
6.950% 03/01/04(+)................... 246
500 ERAC USA Finance Company,
6.625% 02/15/05(+)................... 481
250 Norfolk Southern Corporation,
7.350% 05/15/07...................... 250
--------
977
--------
TRUCKING AND SHIPPING -- 0.5%
650 Ryder Systems Inc.,
6.600% 11/15/05...................... 622
--------
UTILITIES -- ELECTRIC -- 0.4%
480 Appalachian Power Company,
6.375% 03/01/01...................... 481
--------
UTILITIES -- TELEPHONE -- 2.1%
400 AT&T Corporation, Deb.,
8.125% 01/15/22...................... 398
500 Chesapeake Potomac Telephone Maryland,
Deb., 8.000% 10/15/29................ 534
650 GTE Southwest,
6.540% 12/01/05...................... 640
1,000 MCI Worldcom, Inc.,
6.250% 08/15/03...................... 984
--------
2,556
--------
TOTAL CORPORATE BONDS AND NOTES
(Cost $20,970)....................... 20,697
--------
FOREIGN BONDS AND NOTES -- 0.4%
(Cost $520)
500 AB Spintab,
7.500%** 08/14/49(+)................. 478
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
MORTGAGE BACKED SECURITIES -- 17.0%
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 4.1%
$ 430 CS First Boston Mortgage Securities
Corporation, Series 1998-C1, Class
A1B,
6.480% 05/17/08...................... $ 410
471 DLJ Commercial Mortgage Corporation,
Series 1998-CG1, Class A1A,
6.110% 12/10/07...................... 456
440 First Union-Chase Commercial Mortgage,
Series 1999-C2, Class A2,
6.645% 04/15/09...................... 426
560 First Union-Lehman Brothers-Bank of
America Commercial Mortgage, Series
1998-C2, Class A2,
6.560% 11/18/08...................... 542
375 GMAC Commercial Mortgage Securities
Inc., Series 1992-C2, Class A1,
6.570% 09/15/33...................... 369
600 GMAC Commercial Mortgage Securities
Inc., Series 1999-C1, Class A2,
6.175% 05/15/33...................... 559
823 Heller Financial Commercial Mortgage
Asset Corporation, Series 1999-FH1,
Class A1,
6.500% 05/15/31...................... 810
331 Morgan Stanley Capital I, Series
1999-FNV1, Class A1,
6.120% 03/15/31...................... 320
213 Morgan Stanley Capital I, Series
99-WF1, Class A1,
5.910% 04/15/08...................... 205
500 Mortgage Capital Funding, Inc., Series
1998-MC2, Class A2,
6.423% 05/18/08...................... 479
560 Prudential Securities Secured Financing
Corporation, Series 1998-C1, Class
A1B,
6.506% 07/15/08...................... 538
--------
5,114
--------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
CERTIFICATES -- 3.6%
660 6.200% 09/08/08...................... 620
89 8.000% 07/01/10...................... 90
496 7.000% 06/01/11...................... 499
1,009 8.000% 09/01/25...................... 1,032
2,197 7.500% 07/01/29...................... 2,205
--------
4,446
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
CERTIFICATES -- 7.5%
111 8.500% 02/01/00...................... 112
500 6.350% 06/10/05...................... 496
1,366 6.500% 08/01/10...................... 1,349
689 8.500% 08/01/11...................... 717
362 7.000% 01/25/21...................... 362
3,692 6.500% 07/01/29...................... 3,543
2,895 7.000% 07/01/29...................... 2,846
--------
9,425
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
CERTIFICATES -- 1.8%
$ 7 10.000% 02/15/18..................... $ 8
537 7.500% 12/15/23...................... 541
1,646 7.500% 10/15/27...................... 1,654
--------
2,203
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $21,177)....................... 21,188
--------
U.S. TREASURY OBLIGATIONS -- 1.4%
U.S. TREASURY BONDS -- 0.6%
500 12.000% 08/15/13..................... 690
--------
U.S. TREASURY STRIPS -- 0.8%
6,025 Principal only 02/15/27.............. 1,112
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,828)........................ 1,802
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 5.5%
(Cost $6,860)
6,860 Nations Cash Reserves#................. 6,860
--------
TOTAL INVESTMENTS
(Cost $122,294*)................ 104.1% 129,755
--------
OTHER ASSETS AND
LIABILITIES (NET)............. (4.1)%
Receivable for investment securities
sold................................. $ 835
Receivable for Fund shares sold........ 64
Dividends receivable................... 133
Interest receivable.................... 582
Prepaid expenses....................... 7
Collateral on securities loaned........ (3,702)
Payable for Fund shares redeemed....... (172)
Investment advisory fee payable........ (68)
Administration fee payable............. (24)
Shareholder servicing and distribution
fees payable......................... (128)
Due to custodian....................... (1)
Distributions payable.................. (9)
Payable for investment securities
purchased............................ (2,534)
Accrued Trustees'/Directors' fees and
expenses............................. (23)
Accrued expenses and other
liabilities.......................... (47)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ (5,087)
--------
NET ASSETS...................... 100.0% $124,668
========
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 229
Accumulated net realized loss on
investments sold..................... (3,273)
Net unrealized appreciation of
investments.......................... 7,461
Paid-in capital........................ 120,251
--------
NET ASSETS............................. $124,668
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($40,911,888 / 4,033,851 shares
outstanding)......................... $10.14
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price
per share ($16,217,682 / 1,600,709
shares outstanding)..................
$10.13
-----
-----
Maximum sales charge................... 5.75%
Maximum offering price per share....... $10.75
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($66,054,980 / 6,532,106
shares outstanding)..................
$10.11
-----
-----
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($1,483,725 / 147,271 shares
outstanding)......................... $10.07
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $12,091 and gross
depreciation of $4,630 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$122,294.
** Rate represents annualized yield at date of purchase.
(+) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by TradeStreet Investment Associates, Inc.
A portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$3,702.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 2.9%
ASSET-BACKED -- AUTO LOANS -- 0.9%
$ 1,000 AESOP Funding II LLC, Series 1997-1A,
Class A1,
6.220% 10/20/01(+)................... $ 1,001
511 Banc One Auto Grantor Trust, Series
1997-B, Class A,
6.290% 07/20/04...................... 510
761 Chevy Chase Auto Receivables Trust,
Series 1998-2, Class A,
5.910% 12/15/04...................... 756
1,000 Premier Auto Trust, Series 1998-2,
Class A3,
5.770% 01/06/02...................... 998
651 UAF Auto Grantor Trust, Series 1998-A,
Class A,
6.100% 06/15/04...................... 652
--------
3,917
--------
ASSET-BACKED -- CREDIT CARD RECEIVABLES -- 0.6%
975 American Express Master Trust, Series
1998-1, Class A,
5.900% 04/15/04...................... 963
1,250 Chase Credit Card Master Trust, Series
1997-2, Class A,
6.300% 04/15/03...................... 1,254
--------
2,217
--------
ASSET-BACKED -- HOME EQUITY LOANS -- 0.8%
350 Access Financial Mortgage Loan Trust,
Series 1997-3, Class A2,
6.565% 05/18/24...................... 349
500 ContiMortgage Home Equity Loan Trust,
Series 1998-1, Class A4,
6.280% 01/15/13...................... 492
650 EQCC Home Equity Loan Trust, Series
1997-2, Class A6,
6.720% 02/15/12...................... 653
1,000 First Plus Home Loan Trust, Series
1996-3, Class A6,
7.600% 09/20/14...................... 1,011
650 First Plus Home Loan Trust, Series
1997-1, Class A6,
6.950% 12/10/15...................... 647
143 First Plus Home Loan Trust, Series
1998-2, Class A2,
6.230% 06/10/10...................... 143
--------
3,295
--------
ASSET-BACKED -- OTHER -- 0.6%
558 Navistar Financial Corporation Owner
Trust, Series 1998-A, Class A,
5.940% 11/15/04...................... 557
1,800 Pemex Finance Ltd., Series 1998-1A,
Class A1,
5.720% 11/15/03(+)................... 1,763
--------
2,320
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $11,822)....................... 11,749
--------
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 60.2%
AEROSPACE AND DEFENSE -- 0.5%
1,600 Alliant Techsystems Inc.++............. $ 111
400 B.F. Goodrich Company.................. 12
2,400 Litton Industries Inc.++............... 131
30,400 Rockwell International Corporation..... 1,596
--------
1,850
--------
APPAREL AND TEXTILES -- 0.3%
8,200 Jones Apparel Group, Inc.++............ 236
2,500 Linens 'N Things Inc.++................ 84
3,000 Mohawk Industries Inc.++............... 60
2,900 Quiksilver, Inc.++..................... 53
7,100 Shaw Industries, Inc.++................ 113
3,200 Springs Industries Inc. ............... 109
2,400 The Men's Wearhouse Inc.++............. 52
24,900 Tommy Hilfiger Corporation++........... 701
--------
1,408
--------
AUTOMOBILE PARTS MANUFACTURERS -- 0.2%
3,500 Arvin Industries, Inc. ................ 108
12,300 Delphi Automotive Systems
Corporation.......................... 198
7,400 Meritor Automotive, Inc. .............. 154
2,400 Superior Industries International...... 67
7,000 Tower Automotive Inc.++................ 139
--------
666
--------
AUTOMOBILES AND TRUCKS -- 0.7%
32,300 Ford Motor Company..................... 1,622
19,900 General Motors Corporation............. 1,252
--------
2,874
--------
BANKING -- 3.4%
1,155 Charter One Financial, Inc. ........... 27
58,700 Chase Manhattan Corporation............ 4,424
8,100 Cullen Frost Bankers Inc. ............. 203
13,600 Dime Bancorp, Inc. .................... 238
8,200 FirstFed Financial Corporation++....... 142
75,800 Fleet Financial Group, Inc. ........... 2,776
6,400 Hudson United Bancorp.................. 197
12,000 J.P. Morgan & Company Inc. ............ 1,371
41,600 Mellon Bank Corporation................ 1,404
12,100 North Fork Bancorporation, Inc. ....... 236
6,482 Old Kent Financial Corporation......... 241
10,600 Pacific Century Financial
Corporation.......................... 217
5,300 TCF Financial Corporation.............. 151
5,200 Trustmark Corporation.................. 117
5,100 Webster Financial Corporation.......... 130
46,100 Wells Fargo Company.................... 1,827
--------
13,701
--------
BEVERAGES -- 1.2%
1,100 Adolph Coors Company, Class B.......... 60
34,200 Anheuser-Busch Companies, Inc. ........ 2,396
3,100 Canandaigua Brands Inc., Class A++..... 185
19,800 Coca-Cola Company...................... 952
44,900 PepsiCo, Inc. ......................... 1,358
--------
4,951
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
BROADCASTING -- 0.1%
3,400 Univision Communications, Inc.++....... $ 277
2,400 Westwood One, Inc.++................... 108
--------
385
--------
BUILDING MATERIALS -- 0.1%
2,400 Centex Construction Products, Inc. .... 89
2,600 Hughes Supply Inc. .................... 57
3,100 Southdown, Inc. ....................... 166
--------
312
--------
CHEMICALS -- BASIC -- 0.7%
14,000 Dow Chemical Company................... 1,591
2,600 Ecolab, Inc. .......................... 89
3,900 Scotts Company, Class A++.............. 135
17,100 Union Carbide Corporation.............. 971
--------
2,786
--------
CHEMICALS -- DIVERSIFIED -- 0.1%
30,300 Solutia Inc. .......................... 542
--------
CHEMICALS -- SPECIALTY -- 0.1%
9,800 Cytec Industries Inc.++................ 235
--------
COMMERCIAL SERVICES -- 0.1%
6,800 ACNielsen Corporation++................ 154
600 Central Parking Corporation............ 18
4,500 Interim Services Inc.++................ 74
2,300 Lason, Inc.++.......................... 102
2,100 NCO Group, Inc.++...................... 99
--------
447
--------
COMPUTER RELATED -- 3.6%
2,800 Adaptec, Inc.++........................ 111
4,700 American Management Systems++.......... 121
2,600 Comverse Technology Inc.++............. 245
54,200 Dell Computer Corporation++............ 2,266
54,400 EMC Corporation++...................... 3,886
18,100 Hewlett-Packard Company................ 1,665
38,400 International Business Machines
Corporation.......................... 4,661
1,900 Micros Systems, Inc.++................. 77
3,600 National Computer Systems Inc. ........ 138
27,100 Unisys Corporation++................... 1,223
--------
14,393
--------
COMPUTER SERVICES -- 0.0%/+/
2,200 Affiliated Computer Services, Inc.++... 89
1,300 Factset Research Systems Inc. ......... 74
--------
163
--------
COMPUTER SOFTWARE -- 4.3%
2,900 Adobe Systems Inc. .................... 329
23,100 BMC Software, Inc.++................... 1,653
4,800 Citrix Systems, Inc.++................. 297
500 Clarify, Inc.++........................ 25
24,000 Compuware Corporation++................ 626
1,600 DST Systems, Inc.++.................... 91
1,000 Intuit Inc.++.......................... 88
3,700 Macromedia Inc.++...................... 151
4,100 Mercury Interactive Corporation++...... 265
124,900 Microsoft Corporation++................ 11,310
28,200 Oracle Systems Corporation++........... 1,283
6,700 Rational Software Corporation++........ 196
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
COMPUTER SOFTWARE -- (CONTINUED)
5,400 Siebel Systems, Inc.++................. $ 360
400 Sterling Software, Inc.++.............. 8
2,200 Sungard Data Systems, Inc.++........... 58
2,800 Symantec Corporation++................. 101
--------
16,841
--------
CONGLOMERATE -- 2.1%
19,400 AlliedSignal, Inc. .................... 1,163
46,800 Tyco International Ltd. ............... 4,832
39,200 United Technologies Corporation........ 2,325
--------
8,320
--------
CONSTRUCTION -- 0.3%
20,700 Centex Corporation..................... 612
4,400 D.R. Horton Inc. ...................... 57
6,500 M.D.C. Holdings, Inc. ................. 105
3,300 Martin Marietta Materials, Inc. ....... 132
5,600 Ryland Group Inc. ..................... 127
--------
1,033
--------
CONSUMER GOODS AND SERVICES -- 0.1%
3,100 ADVO Inc.++............................ 62
9,000 Smithfield Foods Inc.++................ 241
--------
303
--------
CONTAINERS AND PACKAGING -- 0.3%
5,600 AptarGroup Inc. ....................... 150
19,600 Avery-Dennison Corporation............. 1,034
--------
1,184
--------
COSMETICS AND TOILETRIES -- 1.4%
15,000 Avon Products, Inc. ................... 372
20,800 Colgate-Palmolive Company.............. 952
24,700 Kimberly-Clark Corporation............. 1,297
33,500 Procter & Gamble Company............... 3,140
--------
5,761
--------
DIVERSIFIED -- 0.1%
5,200 Mascotech, Inc. ....................... 84
3,800 Pentair, Inc. ......................... 153
4,600 Terex Corporation++.................... 145
--------
382
--------
DRUGS -- 4.2%
3,900 Alpharma Inc., Class A................. 138
32,100 Amgen Inc.++........................... 2,616
3,766 Bindley Western Industries............. 54
27,500 Biogen, Inc.++......................... 2,167
58,300 Bristol-Myers Squibb Company........... 3,935
3,600 Forest Laboratories, Inc.++............ 152
6,500 IVAX Corporation++..................... 107
4,000 Jones Pharma Incorporated.............. 132
1,200 Medimmune Inc.++....................... 120
21,100 Merck & Company, Inc. ................. 1,368
35,100 Pfizer Inc. ........................... 1,261
4,500 Roberts Pharmaceutical Corporation++... 136
71,100 Schering-Plough Corporation............ 3,102
20,100 Warner-Lambert Company................. 1,334
--------
16,622
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
ELECTRIC POWER -- 1.3%
3,900 DTE Energy Company..................... $ 141
37,200 Edison International................... 904
9,600 Energy East Corporation................ 228
22,600 FPL Group Inc. ........................ 1,138
2,510 NSTAR.................................. 97
37,400 PECO Energy Company.................... 1,404
2,900 TNP Enterprises Inc. .................. 113
24,400 Unicom Corporation..................... 901
2,800 United Illuminating Company............ 135
--------
5,061
--------
ELECTRICAL COMPONENTS -- 0.0%/+/
2,300 Sanmina Corporation++.................. 178
--------
ELECTRICAL EQUIPMENT -- 0.0%/+/
700 C&D Technologies, Inc. ................ 25
--------
ELECTRONICS -- 0.9%
23,400 Applied Materials Inc.++............... 1,817
2,500 Burr-Brown Corporation++............... 99
3,200 CTS Corporation........................ 184
1,500 Dallas Semiconductor Corporation....... 80
2,900 Intervoice Inc.++...................... 32
2,900 SCI Systems, Inc.++.................... 129
14,300 Solectron Corporation++................ 1,027
5,900 Teradyne, Inc.++....................... 208
5,500 Vishay Intertechnology, Inc.++......... 131
--------
3,707
--------
ENTERTAINMENT -- 0.0%/+/
1,900 Electronic Arts Inc.++................. 138
--------
EXPLORATION AND DRILLING -- 0.1%
1,700 Devon Energy Corporation............... 70
5,100 Energen Corporation.................... 103
3,500 Murphy Oil Corporation................. 190
2,000 Stone Energy Corporation++............. 102
--------
465
--------
FINANCIAL SERVICES -- 3.8%
7,500 Americredit Corporation++.............. 112
8,100 Astoria Financial Corporation.......... 249
27,600 AXA Financial, Inc. ................... 1,540
4,000 Bear Stearns Companies Inc. ........... 154
111,425 Citigroup Inc. ........................ 4,903
3,700 Countrywide Credit Industries, Inc. ... 119
4,500 E*TRADE Group, Inc.++.................. 106
3,000 Enhance Financial Services Group
Inc. ................................ 53
28,700 Freddie Mac............................ 1,492
4,300 Legg Mason Inc. ....................... 165
18,500 Lehman Brothers Holdings Inc. ......... 1,079
2,000 Metris Companies Inc. ................. 59
29,100 Morgan Stanley Dean Witter & Company... 2,595
4,400 PMI Group, Inc. ....................... 180
31,100 Providian Financial Corporation........ 2,463
800 SEI Investment Company................. 71
4,900 St. Paul Bancorp Inc. ................. 112
--------
15,452
--------
FOOD PRODUCERS -- 0.8%
40,000 ConAgra Inc. .......................... 902
5,100 Hormel Foods Corporation............... 211
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
FOOD PRODUCERS -- (CONTINUED)
7,800 IBP, Inc. ............................. $ 193
28,000 Quaker Oats Company.................... 1,732
--------
3,038
--------
FOREST AND PAPER PRODUCTS -- 0.4%
7,700 Georgia-Pacific Corporation (Timber
Group)............................... 176
22,800 Georgia-Pacific Corporation............ 924
11,200 Weyerhaeuser Company................... 645
--------
1,745
--------
HEALTHCARE -- 0.1%
1,900 Coventry Health Care Inc.++............ 18
4,100 MedQuist Inc.++........................ 137
4,400 Orthodontic Centers of America++....... 77
6,800 Trigon Healthcare, Inc.++.............. 196
--------
428
--------
HOUSEHOLD PRODUCTS -- 0.1%
6,600 Church & Dwight Co., Inc. ............. 165
1,400 Premark International, Inc. ........... 71
--------
236
--------
INDUSTRIAL -- 0.0%/+/
4,700 Cognex Corporation++................... 142
--------
INSURANCE -- 1.0%
3,400 Ambac Financial Group, Inc. ........... 161
46,600 Conseco Inc. .......................... 900
2,644 Delphi Financial Group Inc., Class
A++.................................. 80
5,400 Everest Reinsurance Holdings, Inc. .... 129
3,340 Fidelity National Financial, Inc. ..... 51
38,200 Hartford Financial Services Group,
Inc. ................................ 1,561
22,000 Lincoln National Corporation Ltd. ..... 826
4,900 MGIC Investment Corporation............ 234
3,200 Radin Group Inc. ...................... 137
1,700 RenaissanceRe Holdings Ltd. ........... 59
--------
4,138
--------
INTERNET -- 0.5%
19,300 America Online Inc.++.................. 2,007
--------
MACHINERY AND EQUIPMENT -- 0.6%
2,100 Astec Industries Inc.++................ 51
3,300 Briggs & Stratton Corporation.......... 193
7,700 Illinois Tool Works, Inc. ............. 574
4,600 Imation Corporation++.................. 143
21,200 Ingersoll-Rand Company................. 1,164
7,200 JLG Industries Inc. ................... 109
4,600 Manitowoc Company, Inc. ............... 157
--------
2,391
--------
MANUFACTURING -- 1.8%
4,700 American Standard Companies Inc.++..... 180
4,700 Analog Devices, Inc.++................. 241
58,700 General Electric Company............... 6,960
--------
7,381
--------
MEDIA -- 1.8%
35,300 CBS Corporation++...................... 1,633
2,100 King World Productions, Inc.++......... 79
7,400 Omnicom Group.......................... 586
44,700 Time Warner Inc. ...................... 2,715
42,900 Viacom Inc., Class B++................. 1,812
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
MEDIA -- (CONTINUED)
160 Washington Post Company................ $ 82
3,900 Xircom Inc.++.......................... 166
--------
7,073
--------
MEDICAL PRODUCTS AND SUPPLIES -- 2.0%
15,700 Allergan, Inc. ........................ 1,727
13,400 Baxter International Inc. ............. 807
1,300 Beckman Coulter, Inc. ................. 59
3,600 C.R. Bard Inc. ........................ 169
13,400 Cardinal Health, Inc. ................. 730
2,700 CONMED Corporation++................... 66
2,600 Datascope Corporation++................ 91
1,700 Dendrite International, Inc.++......... 80
2,600 DENTSPLY International Inc. ........... 59
3,300 Dura Pharmaceuticals Inc.++............ 46
3,500 Genzyme Corporation++.................. 158
1,000 Idec Pharmaceuticals Corp++............ 94
38,800 Johnson & Johnson...................... 3,566
6,700 Owens & Minor, Inc. ................... 64
3,000 Patterson Dental Company++............. 149
1,837 Priority Healthcare Corporation++...... 57
--------
7,922
--------
MEDICAL SERVICES -- 0.3%
7,000 Lincare Holdings Inc.++................ 187
23,300 United Healthcare Corporation.......... 1,134
1,200 Wellpoint Health Networks, Inc.++...... 68
--------
1,389
--------
METALS AND MINING -- 0.2%
10,300 Alcoa Inc. ............................ 639
3,700 Commonwealth Industries, Inc. ......... 50
2,800 Mueller Industries Inc.++.............. 83
3,700 Quanex Corporation..................... 95
--------
867
--------
MISCELLANEOUS -- 0.0%/+/
1,900 Convergys Corporation++................ 38
--------
NETWORKING EQUIPMENT AND PRODUCTS -- 1.2%
71,650 Cisco Systems, Inc.++.................. 4,913
800 Network Appliance, Inc.++.............. 57
--------
4,970
--------
OFFICE EQUIPMENT -- 0.2%
9,000 Lexmark International Group, Inc.,
Class A++............................ 725
--------
OIL -- DOMESTIC -- 0.3%
2,000 Ashland Inc. .......................... 67
2,000 Kerr-McGee Corporation................. 110
31,700 USX-Marathon Group Inc. ............... 928
--------
1,105
--------
OIL -- INTERNATIONAL -- 2.9%
26,100 Apache Corporation..................... 1,127
31,700 Chevron Corporation.................... 2,813
3,600 Exxon Corporation...................... 273
29,300 Mobil Corporation...................... 2,952
75,800 Royal Dutch Petroleum Company.......... 4,478
--------
11,643
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
OIL AND GAS -- 0.1%
9,000 ENSCO International Incorporated....... $ 162
4,100 Newfield Exploration Company++......... 135
3,200 Oceaneering International Inc.++....... 54
--------
351
--------
OIL FIELD SERVICES & EQUIPMENT -- 0.3%
4,000 Cooper Cameron Corporation++........... 151
31,600 Transocean Offshore, Inc. ............. 968
--------
1,119
--------
PRINTING AND PUBLISHING -- 0.5%
6,300 Consolidated Graphics Inc.++........... 265
1,900 Electronics for Imaging, Inc.++........ 98
1,900 Houghton Mifflin Company............... 77
21,500 McGraw-Hill Companies, Inc. ........... 1,041
14,000 New York Times Company, Class A........ 525
4,650 Valassis Communications Inc.++......... 204
--------
2,210
--------
PROFESSIONAL SERVICES -- 0.1%
2,400 Galileo International, Inc. ........... 97
1,600 National Data Corporation.............. 42
4,100 Navigant Consulting, Inc.++............ 190
7,300 Offshore Logistics Inc.++.............. 75
4,700 Sylvan Learning Systems, Inc.++........ 91
--------
495
--------
REAL ESTATE INVESTMENT TRUSTS (REITS) -- 0.0%/+/
3,200 MeriStar Hospitality Corporation....... 49
--------
RECREATION -- 0.4%
4,400 Brunswick Corporation.................. 109
4,300 Harrah's Entertainment Inc.++.......... 119
67,300 Mattel, Inc. .......................... 1,280
2,000 Polaris Industries Inc. ............... 69
--------
1,577
--------
RENTAL AUTO AND EQUIPMENT -- 0.0%/+/
3,800 Hertz Corporation, Inc. ............... 167
--------
RESTAURANTS AND LODGING -- 0.4%
2,900 Applebees International Inc. .......... 98
6,700 Brinker International, Inc.++.......... 182
4,600 CEC Entertainment Inc.++............... 165
5,600 Darden Restaurants Inc. ............... 110
4,800 Foodmaker Inc.++....................... 120
24,800 Tricon Global Restaurants Inc.++....... 1,014
--------
1,689
--------
RETAIL -- FOOD -- 0.7%
14,000 Albertson's Inc. ...................... 554
2,900 Earthgrains Company.................... 64
1,000 Hannaford Bros. Company................ 70
39,400 Safeway, Inc.++........................ 1,500
19,700 SYSCO Corporation...................... 691
2,300 Whole Foods Market Inc.++.............. 75
--------
2,954
--------
RETAIL -- GENERAL -- 1.6%
3,700 Ames Department Stores++............... 118
2,900 Casey's General Stores, Inc. .......... 39
38,300 Federated Department Stores, Inc.++.... 1,673
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
RETAIL -- GENERAL -- (CONTINUED)
1,500 ShopKo Stores, Inc.++.................. $ 44
95,800 Wal-Mart Stores, Inc. ................. 4,556
--------
6,430
--------
RETAIL -- SPECIALTY -- 1.5%
4,600 Abercrombie & Fitch Company++.......... 157
3,500 AnnTaylor Stores Corporation++......... 143
4,500 Best Buy Company, Inc.++............... 279
4,500 Cato Corporation....................... 63
46,975 Gap Inc. .............................. 1,503
2,600 Harley-Davidson Inc. .................. 130
29,400 Home Depot Inc. ....................... 2,019
7,000 Musicland Stores Corporation++......... 61
3,100 Rent-A-Center, Inc.++.................. 58
17,200 Ross Stores, Inc. ..................... 346
2,000 Tiffany & Company...................... 120
35,700 TJX Companies Inc. .................... 1,002
2,100 Toro Company........................... 78
3,600 Zale Corporation++..................... 138
--------
6,097
--------
SEMICONDUCTORS -- 1.9%
2,700 Alpha Industries, Inc.++............... 152
8,800 Cypress Semiconductor Corporation++.... 189
44,800 Intel Corporation...................... 3,330
4,000 Lattice Semiconductor Corporation++.... 119
2,900 Linear Technology Corporation.......... 170
2,300 Novellus Systems Inc.++................ 155
3,800 Plexus Corporation++................... 116
3,900 PMC - Sierra, Inc.++................... 361
2,100 QLogic Corporation++................... 147
31,900 Texas Instruments Inc. ................ 2,624
5,300 Xilinx, Inc.++......................... 347
--------
7,710
--------
STEEL -- 0.3%
21,400 Nucor Corporation...................... 1,019
--------
TECHNOLOGY -- 0.1%
2,000 Progress Software Corporation++........ 63
3,625 Symbol Technologies, Inc. ............. 122
2,100 VISX Inc.++............................ 166
--------
351
--------
TELECOMMUNICATIONS -- 2.0%
5,100 CommScope, Inc.++...................... 166
54,900 Lucent Technologies, Inc. ............. 3,561
16,600 Motorola, Inc. ........................ 1,461
2,500 Powerwave Technologies, Inc.++......... 121
7,500 QUALCOMM Inc.++........................ 1,419
4,050 Sprint Corporation (PCS Group)++....... 302
3,600 TALK.com, Inc.++....................... 46
20,500 Tellabs, Inc.++........................ 1,167
--------
8,243
--------
TOBACCO -- 0.5%
54,200 Philip Morris Companies Inc. .......... 1,853
--------
TRANSPORTATION -- 0.5%
1,900 Alaska Air Group, Inc.++............... 77
1,200 CNF Transportation Inc. ............... 45
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
TRANSPORTATION -- (CONTINUED)
2,650 Comair Holdings, Inc. ................. $ 44
18,500 Delta Air Lines, Inc. ................. 897
7,100 U.S. Freightways Corporation........... 336
16,200 Union Pacific Corporation.............. 779
--------
2,178
--------
TRUCKING AND SHIPPING -- 0.0%/+/
4,600 M.S. Carriers Inc.++................... 110
1 Rollins Truck Leasing Corporation/++/.. 0
--------
110
--------
UTILITIES -- ELECTRIC -- 0.2%
6,900 Allegheny Energy, Inc. ................ 220
2,100 Calpine Corporation++.................. 179
8,100 Conectiv, Inc. ........................ 159
4,100 Pinnacle West Capital Corporation...... 149
8,300 Public Service Company of New Mexico... 151
3,200 UtiliCorp United Inc. ................. 67
--------
925
--------
UTILITIES -- NATURAL GAS -- 0.5%
37,900 Coastal Corporation.................... 1,551
7,700 El Paso Energy Corporation............. 307
3,600 KeySpan Corporation.................... 103
1,600 Piedmont Natural Gas Company, Inc. .... 49
3,500 Southwest Gas Corporation.............. 94
--------
2,104
--------
UTILITIES -- TELEPHONE -- 4.4%
17,300 Ameritech Corporation.................. 1,162
62,900 AT&T Corporation....................... 2,736
4,100 Bell Atlantic Corporation.............. 276
86,400 BellSouth Corporation.................. 3,888
3,575 CenturyTel, Inc. ...................... 145
2,000 Cincinnati Bell, Inc. ................. 39
56,400 GTE Corporation........................ 4,336
67,324 MCI Worldcom, Inc.++................... 4,838
--------
17,420
--------
TOTAL COMMON STOCKS
(Cost $194,966)...................... 242,474
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000)
- ---------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 14.5%
AUTOMOBILE PARTS MANUFACTURERS -- 0.3%
$ 1,200 Delphi Automotive Systems Corporation,
6.125% 05/01/04...................... 1,154
--------
BANKING AND FINANCE -- 4.0%
1,500 Bank One Corporation, 6.375%
10/01/02............................. 1,484
1,100 Bear Stearns Companies Inc., 6.150%
03/02/04............................. 1,060
1,600 BHP Finance USA Ltd., 6.420%
03/01/26............................. 1,571
1,600 Capital One Bank, 6.650% 03/15/04...... 1,557
1,050 Crown Cork & Seal Financial plc, 6.750%
12/15/03............................. 1,031
2,200 Finova Capital Corporation, 6.625%
09/15/01............................. 2,197
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
BANKING AND FINANCE -- (CONTINUED)
$ 1,350 Hanson Overseas B.V.,
7.375% 01/15/03...................... $ 1,375
1,200 Lehman Brothers Holdings Inc.,
6.625% 04/01/04...................... 1,160
1,500 MCN Investment Corporation,
6.890% 01/16/02...................... 1,480
1,200 Newcourt Credit Group Inc.,
6.875% 02/16/05...................... 1,171
1,250 PaineWebber Group Inc.,
7.015% 02/10/04...................... 1,242
1,300 Salomon Smith Barney Holdings,
6.250% 05/15/03...................... 1,270
--------
16,598
--------
BEVERAGES -- 0.4%
1,600 J. Seagram & Sons, Inc.,
6.625% 12/15/05...................... 1,531
--------
CHEMICALS -- SPECIALTY -- 0.4%
1,500 Praxair, Inc.,
6.750% 03/01/03...................... 1,488
--------
CONSTRUCTION -- 0.3%
1,100 USG Corporation,
9.250% 09/15/01...................... 1,140
--------
DRUGS -- 0.4%
1,500 SmithKline Beecham Corporation,
6.625% 10/01/01...................... 1,510
--------
ELECTRIC POWER -- 0.6%
1,300 Consumers Energy Company,
6.200% 05/01/03...................... 1,254
1,100 PSEG Capital Corporation,
6.740% 10/23/01...................... 1,101
--------
2,355
--------
FINANCIAL SERVICES -- 2.8%
1,200 Bear Stearns Company, Inc.,
6.750% 05/01/01...................... 1,203
1,500 Chrysler Financial Company, LLC,
6.950% 03/25/02...................... 1,513
500 Countrywide Home Loan Corporation,
7.450% 09/16/03...................... 508
1,150 DaimlerChrysler NA Holdings,
6.900% 09/01/04...................... 1,154
1,400 Ford Motor Credit Company,
5.750% 02/23/04...................... 1,344
1,000 General Motors Acceptance Corporation,
6.150% 04/05/07...................... 941
750 Household Finance Corporation,
6.875% 03/01/07...................... 736
1,500 International Lease Finance
Corporation,
6.875% 05/01/01...................... 1,513
1,200 Sears Roebuck Acceptance Corporation,
6.000% 03/20/03...................... 1,168
1,500 Sears Roebuck Acceptance Corporation,
6.150% 11/15/05...................... 1,497
--------
11,577
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
FOOD PRODUCERS -- 0.4%
$ 1,500 Nabisco Inc.,
6.125% 02/01/33...................... $ 1,449
--------
GAS -- 0.5%
1,000 KN Energy, Inc.,
6.450% 03/01/03...................... 970
1,100 Williams Companies, Inc.,
6.500% 08/01/06...................... 1,051
--------
2,021
--------
INDUSTRIAL -- 1.2%
1,400 Case Credit Corporation,
6.125% 02/15/03...................... 1,352
1,500 Honeywell Inc.,
6.750% 03/15/02...................... 1,506
1,200 Tyco International Group SA,
6.375% 06/15/05...................... 1,160
1,000 USA Waste Services Inc.,
7.000% 07/15/28...................... 784
--------
4,802
--------
INSURANCE -- 0.3%
1,000 Aon Corporation,
7.400% 10/01/02...................... 1,019
--------
MACHINERY AND EQUIPMENT -- 0.3%
1,200 Thermo Electron Corporation,
7.625% 10/30/08...................... 1,147
--------
MEDIA -- 0.5%
1,150 British Sky Broadcasting Group plc,
6.875% 02/23/09...................... 1,041
1,200 Cox Radio, Inc.,
6.250% 05/15/03...................... 1,167
--------
2,208
--------
OIL -- DOMESTIC -- 0.3%
1,200 Occidental Petroleum Corporation,
7.650% 02/15/06...................... 1,207
--------
PROFESSIONAL SERVICES -- 0.3%
1,100 Service Corporation International,
6.300% 03/15/03...................... 1,039
--------
TELECOMMUNICATIONS -- 0.3%
1,200 Cable & Wireless Communications plc,
6.375% 03/06/03...................... 1,199
--------
UTILITIES -- TELEPHONE -- 1.2%
1,200 GTE Corporation,
9.100% 06/01/03...................... 1,285
1,500 GTE North, Inc.,
5.650% 11/15/08...................... 1,361
1,400 MCI Worldcom, Inc.,
6.400% 08/15/05...................... 1,353
1,200 Sprint Capital Corporation,
5.700% 11/15/03...................... 1,146
--------
5,145
--------
TOTAL CORPORATE
BONDS AND NOTES
(Cost $59,651)....................... 58,589
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
FOREIGN BONDS AND NOTES -- 0.2%
(Cost $1,001)
$ 1,000 Banco Latinoamericano,
7.200%** 05/28/02.................... $ 992
--------
MORTGAGE-BACKED SECURITIES -- 19.3%
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 5.4%
1,750 Asset Securitization Corporation,
Series 1997-D5, Class A1C,
6.750% 02/14/41...................... 1,697
1,715 Commercial Mortgage Acceptance
Corporation, Series 1998-C1, Class
A2, 6.490% 05/15/08.................. 1,651
1,642 Criimi Mae CMBS Corporation, Series
1998-1, Class A1,
5.697% 10/20/01...................... 1,581
1,800 CS First Boston Mortgage Securities
Corporation, Series 1998-C1, Class
A1B, 6.480% 05/17/08................. 1,717
1,900 DLJ Commercial Mortgage Corporation,
Series 1998-CG1, Class A1B,
6.410% 05/10/08...................... 1,806
1,600 General Growth Properties, Series
1997-1, Class A2,
6.602% 11/15/07...................... 1,550
2,075 GMAC Commercial Mortgage Securities
Inc., Series 1997-C2, Class A3,
6.566% 11/15/07...................... 1,997
6,963 JP Morgan Commercial Mortgage Finance
Corporation, Series 1997-C4, Class X,
1.292%** 12/26/28.................... 407
2,350 Lehman Brothers Commercial Conduit
Mortgage Trust, Series 1998-C1, Class
A3,
6.480% 01/18/08...................... 2,242
750 Mortgage Capital Funding, Inc., Series
1998-MC1, Class A2,
6.663% 01/18/08...................... 731
1,850 Mortgage Capital Funding, Inc., Series
1998-MC2, Class A2,
6.423% 05/18/08...................... 1,773
1,341 Nomura Asset Securities Corporation,
Series 1998-D6, Class A1A,
6.280% 03/17/28...................... 1,315
2,050 Nomura Asset Securities Corporation,
Series 1998-D6, Class A1B,
6.590% 03/17/28...................... 1,973
47,681 Vendee Mortgage Trust, Series 1998-1,
Class 2, IO,
.454%** 09/15/27..................... 819
50,151 Vendee Mortgage Trust, Series 1998-3,
Class 1, IO,
.314%** 03/15/29..................... 689
--------
21,948
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
CERTIFICATES -- 1.0%
$ 91 8.000% 01/01/04....................... $ 92
1,116 7.000% 05/01/04....................... 1,119
648 6.500% 06/01/04....................... 645
489 6.500% 04/01/09....................... 485
1,863 6.500% 07/01/10....................... 1,839
8 10.500% 04/01/19....................... 8
--------
4,188
--------
FEDERAL HOUSING AUTHORITY (FHA)
CERTIFICATES -- 0.4%
98 6.750% 01/01/40....................... 91
497 6.750% 01/01/40....................... 462
125 6.850% 01/01/40....................... 118
267 7.000% 01/01/40....................... 253
153 7.000% 01/01/40....................... 145
162 6.850% 02/01/40....................... 152
111 6.530% 10/01/40....................... 102
529 6.530% 10/01/40....................... 483
--------
1,806
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
CERTIFICATES -- 10.0%
339 7.500% 06/01/03....................... 341
638 7.000% 06/01/04....................... 640
400 7.000% 06/01/04....................... 402
853 6.500% 06/01/05....................... 846
371 6.500% 01/01/06....................... 370
4,500 6.625% 09/15/09....................... 4,488
217 6.500% 10/01/10....................... 214
478 7.500% 10/01/11....................... 485
2,270 6.500% 02/01/13....................... 2,231
3,200 6.500% 10/15/14....................... 3,140
3,200 7.000% 10/15/14....................... 3,145
572 10.000% 09/01/18....................... 620
5,610 6.500% 12/01/27....................... 5,381
2,977 7.000% 05/01/28....................... 2,927
2,744 7.000% 08/01/28....................... 2,699
3,325 7.000% 09/01/29....................... 3,267
8,000 8.000% 10/15/29....................... 8,161
679 7.291%** 08/01/36..................... 690
--------
40,047
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
CERTIFICATES -- 2.1%
235 6.550% 03/15/01....................... 216
70 6.550% 03/15/01....................... 65
125 6.750% 09/15/01....................... 117
677 6.750% 09/15/01....................... 631
256 6.600% 11/15/01....................... 236
154 6.600% 11/15/01....................... 143
23 10.000% 02/15/16....................... 26
145 9.000% 10/15/19....................... 153
99 9.000% 11/15/19....................... 104
573 9.000% 12/15/19....................... 604
88 9.000% 01/15/20....................... 92
112 9.000% 01/15/20....................... 118
2,168 8.000% 07/15/27....................... 2,217
406 8.000% 09/15/27....................... 415
113 8.000% 04/15/28....................... 116
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA) CERTIFICATES -- (CONTINUED)
$ 2,163 8.000% 06/15/28........................ $ 2,213
820 8.000% 06/15/28........................ 839
--------
8,305
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II
(GNMA) CERTIFICATES -- 0.4%
498 6.650% 01/15/34........................ 467
1,200 7.375% 09/15/34........................ 1,180
--------
1,647
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $79,857)....................... 77,941
--------
<CAPTION>
SHARES
- ---------
<C> <S> <C>
PREFERRED STOCKS -- 0.1%
(Cost $245)
CONTAINERS AND PACKAGING -- 0.1%
4,845 Sealed Air Corporation................. 246
--------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
- ---------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 2.8%
U.S. TREASURY STRIPS -- 2.8%
$ 750 Interest only
.000% 08/15/09....................... 403
4,000 Interest only
.000% 08/15/19....................... 1,095
9,100 Principal only
.000% 05/15/17....................... 2,908
20,300 Principal only
.000% 11/15/21....................... 4,926
9,900 Principal only
.000% 02/15/27....................... 1,827
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,810)....................... 11,159
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.9%
(Cost $11,490)
11,490 Nations Cash Reserves#................ $ 11,490
--------
TOTAL INVESTMENTS
(Cost $370,842*)............. 102.9% 414,640
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (2.9)%
Cash.................................. $ 71
Receivable for investment securities
sold................................ 12,682
Receivable for Fund shares sold....... 950
Dividends receivable.................. 303
Interest receivable................... 1,605
Prepaid expenses...................... 56
Payable for Fund shares redeemed...... (643)
Investment advisory fee payable....... (209)
Administration fee payable............ (78)
Shareholder servicing and distribution
fees payable........................ (170)
Distributions payable................. (1,772)
Payable for investment securities
purchased........................... (23,994)
Accrued Trustees'/Directors' fees and
expenses............................ (5)
Accrued expenses and other
liabilities......................... (365)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (11,569)
--------
NET ASSETS..................... 100.0% $403,071
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 259
Accumulated net realized gain on
investments sold.................... 19,308
Net unrealized appreciation of
investments......................... 43,798
Paid-in capital....................... 339,706
--------
NET ASSETS............................ $403,071
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($8,649,932 / 381,764 shares
outstanding)........................ $22.66
------
------
INVESTOR A SHARES:
Net asset value and redemption price
per share ($84,401,031 / 3,724,628
shares outstanding)................. $22.66
------
------
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $24.04
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($108,590,949 / 4,809,787
shares outstanding)................. $22.58
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($2,093,120 / 92,588 shares
outstanding)........................ $22.61
------
------
SEAFIRST SHARES:
Net asset value, offering and
redemption price per share
($199,335,512 / 11,689,610 shares
outstanding)........................ $17.05
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $58,799 and gross
depreciation of $15,001 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$370,842.
** Variable rate note. The interest rate shown reflects the rate in effect at
September 30, 1999.
(+) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
/+/ Amount represents less than 0.1%.
/++/ Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by TradeStreet Investment Associates,
Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS FUNDS
Nations Value Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.0%
AEROSPACE AND DEFENSE -- 0.9%
339,334 Raytheon Company, Class B.......... $ 16,839
----------
APPAREL AND TEXTILES -- 0.2%
166,900 Jones Apparel Group, Inc.++........ 4,798
----------
AUTOMOBILE PARTS MANUFACTURERS -- 1.0%
701,100 Genuine Parts Company.............. 18,623
----------
AUTOMOBILES AND TRUCKS -- 2.2%
847,900 Ford Motor Company................. 42,554
----------
BANKING -- 7.8%
424,055 Banc One Corporation............... 14,762
446,400 Bank of New York Inc............... 14,927
603,100 BankBoston Corporation............. 26,159
575,929 Chase Manhattan Corporation........ 43,411
1,556,500 Mellon Bank Corporation............ 52,532
----------
151,791
----------
BEVERAGES -- 2.2%
396,800 Anheuser-Busch Companies, Inc...... 27,801
500,725 PepsiCo, Inc....................... 15,147
----------
42,948
----------
CHEMICALS -- BASIC -- 1.2%
283,200 E.I. duPont de Nemours and
Company.......................... 17,240
176,600 Eastman Chemical Company........... 7,064
----------
24,304
----------
COMPUTER RELATED -- 13.1%
498,300 Apple Computer Inc.++.............. 31,549
267,670 Comverse Technology Inc.++......... 25,245
979,880 Gateway Inc.++..................... 43,542
386,750 Honeywell Inc...................... 43,050
357,950 International Business Machines
Corporation...................... 43,446
268,750 Sun Microsystems, Inc.++........... 24,994
1,040,100 Unisys Corporation++............... 46,934
----------
258,760
----------
COMPUTER SOFTWARE -- 1.5%
1,091,700 Compuware Corporation++............ 28,452
----------
CONGLOMERATE -- 2.0%
675,100 United Technologies Corporation.... 40,042
----------
CONSTRUCTION -- 2.3%
692,600 Centex Corporation................. 20,475
766,300 Masco Corporation.................. 23,755
----------
44,230
----------
COSMETICS AND TOILETRIES -- 0.9%
186,300 Procter & Gamble Company........... 17,466
----------
DIVERSIFIED -- 0.5%
131,100 Textron Inc........................ 10,144
----------
DRUGS -- 4.0%
606,150 Bristol-Myers Squibb Company....... 40,916
833,500 Schering-Plough Corporation........ 36,361
----------
77,277
----------
ELECTRIC POWER -- 3.2%
1,311,700 Energy East Corporation............ 31,153
824,900 Unicom Corporation................. 30,470
----------
61,623
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES -- 3.9%
762,780 Citigroup Inc...................... $ 33,562
748,800 Paine Webber Group, Inc............ 27,144
543,732 Washington Mutual, Inc............. 15,904
----------
76,610
----------
FOOD PRODUCERS -- 1.9%
196,800 General Mills Inc. ................ 15,965
329,200 Nabisco Group Holdings
Corporation...................... 4,938
261,375 Quaker Oats Company................ 16,173
----------
37,076
----------
FOREST AND PAPER PRODUCTS -- 1.0%
225,600 Boise Cascade Corporation.......... 8,220
226,200 International Paper Company........ 10,872
----------
19,092
----------
FURNITURE AND APPLIANCES -- 0.8%
252,600 Whirlpool Corporation.............. 16,498
----------
INSURANCE -- 6.2%
577,720 CIGNA Corporation.................. 44,918
689,450 Hartford Financial Services Group,
Inc. ............................ 28,181
1,286,100 Lincoln National Corporation
Ltd. ............................ 48,309
----------
121,408
----------
MANUFACTURING -- 0.3%
374,600 IMC Global, Inc. .................. 5,455
----------
MEDICAL SERVICES -- 3.4%
1,670,700 HEALTHSOUTH Corporation++.......... 10,129
1,240,750 Tenet Healthcare Corporation++..... 21,791
597,025 Wellpoint Health Networks,
Inc.++........................... 34,030
----------
65,950
----------
METALS AND MINING -- 0.5%
183,100 Phelps Dodge Corporation........... 10,082
----------
OFFICE EQUIPMENT -- 3.2%
771,400 Lexmark International Group, Inc.,
Class A++........................ 62,098
----------
OIL -- DOMESTIC -- 2.6%
949,321 Conoco, Inc. ...................... 25,988
836,200 USX-Marathon Group Inc. ........... 24,459
----------
50,447
----------
OIL -- INTERNATIONAL -- 7.9%
381,600 BP Amoco plc, ADR.................. 42,286
323,300 Exxon Corporation.................. 24,551
469,000 Mobil Corporation.................. 47,251
679,800 Royal Dutch Petroleum Company...... 40,151
----------
154,239
----------
OIL FIELD SERVICES & EQUIPMENT -- 0.4%
206,700 Halliburton Company................ 8,475
----------
RECREATION -- 1.4%
1,293,550 Hasbro, Inc. ...................... 27,730
----------
RETAIL -- FOOD -- 0.9%
754,700 Kroger Company++................... 16,651
----------
RETAIL -- GENERAL -- 1.6%
720,450 Federated Department Stores,
Inc.++........................... 31,475
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS FUNDS
Nations Value Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
RETAIL -- SPECIALTY -- 2.8%
412,600 AnnTaylor Stores Corporation++..... $ 16,865
1,331,775 TJX Companies Inc. ................ 37,373
----------
54,238
----------
SEMICONDUCTORS -- 1.2%
314,880 Intel Corporation.................. 23,400
----------
STEEL -- 2.2%
872,300 Bethlehem Steel Corporation++...... 6,433
487,500 Nucor Corporation.................. 23,217
497,500 USX - U.S. Steel Group Inc......... 12,811
----------
42,461
----------
TOBACCO -- 0.7%
330,642 Philip Morris Companies Inc........ 11,304
109,733 R.J. Reynolds Tobacco Holdings,
Inc.............................. 2,963
----------
14,267
----------
UTILITIES -- NATURAL GAS -- 1.4%
353,750 Coastal Corporation................ 14,481
359,600 Williams Companies, Inc............ 13,463
----------
27,944
----------
UTILITIES -- TELEPHONE
225,000 ALLTEL Corporation................. 15,834
824,612 AT&T Corporation................... 35,871
699,600 BellSouth Corporation.............. 31,482
784,495 GTE Corporation.................... 60,307
261,242 MCI Worldcom, Inc.++............... 18,777
952,700 SBC Communications Inc............. 48,647
----------
210,918
----------
TOTAL COMMON STOCKS
(Cost $1,406,521)................ 1,916,365
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 4.3%
(Cost $84,570)
84,570 Nations Cash Reserves#............. 84,570
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,491,091*)........ 102.3% $2,000,935
----------
OTHER ASSETS AND
LIABILITIES (NET)......... (2.3)%
Receivable for investment
securities sold.................. $ 14,885
Receivable for Fund shares sold.... 1,673
Dividends receivable............... 3,148
Interest receivable................ 131
Prepaid expenses and other
assets........................... 12
Collateral on securities loaned.... (42,156)
Payable for Fund shares redeemed... (3,509)
Investment advisory fee payable.... (1,096)
Administration fee payable......... (388)
Shareholder servicing and
distribution fees payable........ (383)
Due to custodian................... (43)
Payable for investment securities
purchased........................ (16,294)
Accrued Trustees'/Directors' fees
and expenses..................... (78)
Accrued expenses and other
liabilities...................... (630)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................ (44,728)
----------
NET ASSETS.................. 100.0% $1,956,207
==========
NET ASSETS CONSIST OF:
Undistributed net investment
income........................... $ 355
Accumulated net realized gain on
investments sold................. 191,585
Net unrealized appreciation
of investments................... 509,844
Paid-in capital.................... 1,254,423
----------
NET ASSETS......................... $1,956,207
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS FUNDS
Nations Value Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- ------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($1,672,535,123 / 97,281,168
shares outstanding).............. $17.19
-----
-----
INVESTOR A SHARES:
Net asset value and redemption
price per share
($124,207,036 / 7,221,497 shares
outstanding)..................... $17.20
-----
-----
Maximum sales charge............... 5.75%
Maximum offering price per share... $18.25
INVESTOR B SHARES:
Net asset value and offering price
per share+
($147,903,430 / 8,701,869 shares
outstanding)..................... $17.00
-----
-----
INVESTOR C SHARES:
Net asset value and offering price
per share+ ($11,561,547 / 680,531
shares outstanding).............. $16.99
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $572,737 and gross
depreciation of $62,893 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$1,491,091.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$42,156.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS FUNDS
Nations Equity Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.7%
AEROSPACE AND DEFENSE -- 2.1%
123,600 Boeing Company......................... $ 5,268
39,200 EG&G, Inc. ............................ 1,561
36,200 General Dynamics Corporation........... 2,260
85,600 Raytheon Company, Class B.............. 4,248
600 TRW Inc. .............................. 30
--------
13,367
--------
APPAREL AND TEXTILES -- 0.2%
41,700 V.F. Corporation....................... 1,293
--------
AUTOMOBILE PARTS MANUFACTURERS -- 1.1%
33,200 Delphi Automotive Systems
Corporation.......................... 533
74,500 Eaton Corporation...................... 6,431
--------
6,964
--------
AUTOMOBILES AND TRUCKS -- 2.0%
155,300 Ford Motor Company/++/................. 7,795
48,500 General Motors Corporation............. 3,052
49,800 ITT Industries, Inc. .................. 1,584
--------
12,431
--------
BANKING -- 5.6%
207,400 Banc One Corporation................... 7,220
135,000 Chase Manhattan Corporation............ 10,177
44,600 First Union Corporation................ 1,586
153,700 Fleet Financial Group, Inc. ........... 5,629
46,300 National City Corporation.............. 1,236
34,500 Regions Financial Corporation.......... 1,035
113,300 SunTrust Banks, Inc. .................. 7,449
17,200 Wachovia Corporation................... 1,352
--------
35,684
--------
BEVERAGES -- 2.9%
66,600 Adolph Coors Company, Class B.......... 3,605
59,900 Anheuser-Busch Companies, Inc. ........ 4,197
16,900 Brown-Forman Corporation, Class B...... 1,054
36,700 Coca-Cola Company...................... 1,764
254,300 PepsiCo, Inc. ......................... 7,692
--------
18,312
--------
CHEMICALS -- BASIC -- 0.3%
17,500 Dow Chemical Company................... 1,988
--------
COMMERCIAL SERVICES -- 0.3%
158,800 Ogden Corporation...................... 1,588
--------
COMPUTER RELATED -- 7.0%
46,500 Dell Computer Corporation++............ 1,944
29,000 EMC Corporation++...................... 2,072
179,200 Hewlett-Packard Company................ 16,486
197,000 International Business Machines
Corporation/++/...................... 23,911
--------
44,413
--------
COMPUTER SOFTWARE -- 3.1%
214,000 Microsoft Corporation++/++/............ 19,380
--------
CONGLOMERATE -- 3.2%
76,200 AlliedSignal, Inc. .................... 4,567
63,300 Tyco International Ltd. ............... 6,536
155,400 United Technologies Corporation/++/.... 9,217
--------
20,320
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
CONTAINERS AND PACKAGING -- 0.4%
60,500 Ball Corporation....................... $ 2,666
--------
COSMETICS AND TOILETRIES -- 2.2%
192,100 Kimberly-Clark Corporation............. 10,086
41,700 Procter & Gamble Company............... 3,909
--------
13,995
--------
DIVERSIFIED -- 0.1%
13,400 Eastern Enterprises.................... 622
--------
DRUGS -- 2.2%
21,500 American Home Products Corporation..... 892
35,400 Bristol-Myers Squibb Company........... 2,390
31,500 Eli Lilly and Company.................. 2,016
46,100 Merck & Company, Inc. ................. 2,987
58,900 Pfizer Inc. ........................... 2,117
30,300 Pharmacia & Upjohn, Inc. .............. 1,504
25,000 Schering-Plough Corporation............ 1,091
12,400 Warner-Lambert Company................. 823
--------
13,820
--------
ELECTRIC POWER -- 12.3%
128,200 Ameren Corporation..................... 4,848
46,000 American Electric Power Inc. .......... 1,570
223,900 Central & South West Corporation....... 4,730
157,700 CINergy Corporation.................... 4,465
56,900 Consolidated Edison, Inc. ............. 2,361
102,000 Constell Energy........................ 2,869
144,700 Dominion Resources, Inc. .............. 6,530
20,800 DTE Energy Company..................... 751
178,700 Duke Energy Corporation................ 9,852
92,700 FirstEnergy Corporation................ 2,364
136,200 Florida Progress Corporation........... 6,299
63,200 FPL Group Inc. ........................ 3,184
97,200 GPU, Inc. ............................. 3,171
27,200 New Century Energies, Inc. ............ 910
122,500 Northern States Power Corporation...... 2,641
100,500 P G & E Corporation.................... 2,600
72,500 PP&L Resources Inc. ................... 1,962
166,900 Public Service Enterprise Group........ 6,447
65,800 Southern Company....................... 1,694
59,900 Texas Utilities Company................ 2,235
196,100 Unicom Corporation..................... 7,243
--------
78,726
--------
ELECTRONICS -- 0.5%
116,900 Harris Corporation..................... 3,229
--------
ENVIRONMENTAL -- 0.3%
31,500 Johnson Controls Inc. ................. 2,089
--------
FINANCIAL SERVICES -- 2.6%
139,900 American General Corporation........... 8,840
133,900 Citigroup Inc. ........................ 5,892
24,000 Marsh & McLennan Companies Inc. ....... 1,644
--------
16,376
--------
FOOD PRODUCERS -- 3.0%
51,700 Bestfoods.............................. 2,507
146,800 General Mills Inc. .................... 11,909
28,000 H.J. Heinz Company..................... 1,204
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS FUNDS
Nations Equity Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
FOOD PRODUCERS -- (CONTINUED)
115,800 Sara Lee Corporation................... $ 2,714
8,100 Unilever NV............................ 552
--------
18,886
--------
FOREST AND PAPER PRODUCTS -- 1.5%
127,600 Potlatch Corporation................... 5,256
68,600 Weyerhaeuser Company................... 3,953
--------
9,209
--------
INSURANCE -- 3.1%
80,600 Aetna Life and Casualty Company........ 3,970
129,000 Allstate Corporation................... 3,217
37,700 Aon Corporation........................ 1,115
58,000 Cincinnati Financial Corporation....... 2,177
49,000 Jefferson-Pilot Corporation............ 3,096
161,300 Lincoln National Corporation Ltd. ..... 6,058
--------
19,633
--------
MACHINERY AND EQUIPMENT -- 1.3%
35,300 Briggs & Stratton Corporation.......... 2,061
122,200 Cooper Industries Inc. ................ 5,712
30,400 Foster Wheeler Corporation............. 367
--------
8,140
--------
MANUFACTURING -- 3.3%
174,300 General Electric Company/++/........... 20,665
--------
MEDIA -- 0.2%
16,300 Time Warner Inc. ...................... 990
--------
MEDICAL PRODUCTS AND SUPPLIES -- 3.7%
36,900 Abbott Laboratories.................... 1,356
22,300 Baxter International Inc. ............. 1,344
23,600 C.R. Bard Inc. ........................ 1,111
197,800 Johnson & Johnson...................... 18,172
50,000 Medtronic, Inc. ....................... 1,775
--------
23,758
--------
METALS AND MINING -- 1.1%
67,800 Alcoa Inc. ............................ 4,208
44,900 Reynolds Metals Company................ 2,711
--------
6,919
--------
NETWORKING EQUIPMENT AND PRODUCTS -- 0.8%
72,900 Cisco Systems, Inc.++.................. 4,998
--------
OFFICE EQUIPMENT -- 0.3%
23,500 Pitney Bowes, Inc. .................... 1,432
8,800 Xerox Corporation...................... 369
--------
1,801
--------
OIL -- DOMESTIC -- 3.4%
66,900 Amerada Hess Corporation............... 4,098
114,700 Atlantic Richfield Company............. 10,164
34,000 Phillips Petroleum Company............. 1,658
211,400 Sunoco, Inc. .......................... 5,787
--------
21,707
--------
OIL -- INTERNATIONAL -- 4.4%
68,200 Chevron Corporation.................... 6,053
49,000 Exxon Corporation...................... 3,721
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
OIL -- INTERNATIONAL -- (CONTINUED)
109,700 Mobil Corporation...................... $ 11,052
75,900 Royal Dutch Petroleum Company.......... 4,483
36,100 Texaco Inc. ........................... 2,279
--------
27,588
--------
OIL FIELD SERVICES & EQUIPMENT -- 0.2%
50,500 Sempra Energy.......................... 1,051
--------
PHOTO AND OPTICAL -- 0.3%
24,100 Eastman Kodak Company.................. 1,818
--------
PRINTING AND PUBLISHING -- 1.6%
67,200 Deluxe Corporation..................... 2,285
40,100 Dow Jones & Company Inc. .............. 2,140
47,700 Jostens Inc. .......................... 912
24,700 McGraw-Hill Companies, Inc. ........... 1,195
125,600 R.R. Donnelley & Sons Company.......... 3,627
--------
10,159
--------
RECREATION -- 1.4%
289,600 Brunswick Corporation.................. 7,203
65,300 Walt Disney Company.................... 1,690
--------
8,893
--------
RESTAURANTS AND LODGING -- 2.0%
109,100 Darden Restaurants Inc. ............... 2,134
190,600 McDonald's Corporation................. 8,196
52,400 Tricon Global Restaurants Inc.++....... 2,145
--------
12,475
--------
RETAIL -- FOOD -- 2.2%
180,500 Albertson's Inc. ...................... 7,142
10,600 Great Atlantic & Pacific Tea Company,
Inc. ................................ 321
30,200 Safeway, Inc.++........................ 1,149
246,700 Supervalu Inc. ........................ 5,381
--------
13,993
--------
RETAIL -- GENERAL -- 2.8%
354,200 May Department Stores Company.......... 12,906
100,900 Wal-Mart Stores, Inc. ................. 4,799
--------
17,705
--------
RETAIL -- SPECIALTY -- 0.7%
29,300 CVS Corporation........................ 1,196
35,800 Home Depot Inc. ....................... 2,456
25,000 Longs Drug Stores Corporation.......... 747
--------
4,399
--------
SEMICONDUCTORS -- 1.8%
151,700 Intel Corporation/++/.................. 11,273
--------
STEEL -- 0.2%
83,900 Worthington Industries................. 1,426
--------
TELECOMMUNICATIONS -- 0.9%
54,900 Lucent Technologies, Inc. ............. 3,561
27,200 Motorola, Inc. ........................ 2,394
--------
5,955
--------
TOBACCO -- 0.2%
37,900 Philip Morris Companies Inc. .......... 1,296
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS FUNDS
Nations Equity Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
TRANSPORTATION -- 1.1%
227,700 Burlington Northern Santa Fe Inc. ..... $ 6,262
16,300 Southwest Airlines Company............. 248
13,800 Union Pacific Corporation.............. 663
--------
7,173
--------
UTILITIES -- NATURAL GAS -- 2.0%
38,700 Consolidated Natural Gas Company....... 2,414
152,300 KeySpan Corporation.................... 4,359
113,500 NICOR Inc. ............................ 4,221
45,800 Sonat Inc. ............................ 1,818
--------
12,812
--------
UTILITIES -- TELEPHONE -- 6.8%
205,000 ALLTEL Corporation..................... 14,426
96,900 AT&T Corporation/++/................... 4,215
43,200 Bell Atlantic Corporation.............. 2,908
139,200 BellSouth Corporation/++/.............. 6,264
177,600 GTE Corporation........................ 13,653
7,200 MCI Worldcom, Inc.++................... 518
6,600 SBC Communications Inc. ............... 337
15,700 U.S. West Inc. ........................ 896
--------
43,217
--------
TOTAL COMMON STOCKS
(Cost $545,479)...................... 625,202
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.2%
(Cost $14,237)
14,237 Nations Cash Reserves#................ 14,237
--------
TOTAL INVESTMENTS (Cost
$559,716*)................... 100.9% 639,439
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (0.9)%
Receivable for investment securities
sold................................ $ 1,708
Receivable for Fund shares sold....... 77
Dividends receivable.................. 1,287
Interest receivable................... 72
Variation margin...................... 35
Prepaid expenses and other assets..... 14
Collateral on securities loaned....... (5,890)
Payable for Fund shares redeemed...... (2,041)
Investment advisory fee payable....... (299)
Administration fee payable............ (126)
Shareholder servicing and distribution
fees payable........................ (143)
Due to custodian...................... (5)
Accrued Trustees'/Directors' fees and
expenses............................ (10)
Accrued expenses and other
liabilities......................... (257)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (5,578)
--------
NET ASSETS..................... 100.0% $633,861
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -----------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 234
Accumulated net realized gain on
investments sold and futures
contracts........................... 19,846
Net unrealized appreciation of
investments and futures contracts... 79,179
Paid-in capital....................... 534,602
--------
NET ASSETS............................ $633,861
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($492,163,743 / 42,937,177 shares
outstanding)........................ $11.46
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($41,802,316 / 3,662,358
shares outstanding)................. $11.41
=====
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $12.11
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($94,712,008 / 8,300,286
shares outstanding)................. $11.41
=====
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($5,182,977 / 448,791 shares
outstanding)........................ $11.55
=====
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $114,400 and gross
depreciation of $34,677 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$559,716.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
/++/ A portion of the security is segregated as collateral for futures
contracts.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by TradeStreet Investment Associates,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 9). The portion that represents cash
collateral is $5,890.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.6%
AEROSPACE AND DEFENSE -- 1.0%
7,000 B.F. Goodrich Company................. $ 203
91,700 Boeing Company........................ 3,909
4,300 EG&G, Inc. ........................... 171
18,600 General Dynamics Corporation.......... 1,161
37,200 Lockheed Martin Corporation........... 1,216
6,500 Northrop Grumman Corporation.......... 413
31,600 Raytheon Company, Class B............. 1,568
17,900 Rockwell International Corporation.... 940
11,300 TRW Inc. ............................. 562
----------
10,143
----------
APPAREL AND TEXTILES -- 0.2%
6,800 Fruit of the Loom, Inc., Class A++.... 23
6,000 Liz Claiborne Inc. ................... 186
3,800 National Service Industries, Inc. .... 120
26,500 Nike, Inc., Class B................... 1,507
5,300 Reebok International, Ltd.++.......... 57
3,100 Russell Corporation................... 44
1,600 Springs Industries Inc. .............. 54
11,200 V.F. Corporation...................... 347
----------
2,338
----------
AUTOMOBILE PARTS MANUFACTURERS -- 0.4%
14,100 AutoZone Inc.++....................... 396
7,200 Cooper Tire & Rubber Company.......... 127
15,600 Dana Corporation...................... 579
53,200 Delphi Automotive Systems
Corporation......................... 854
6,800 Eaton Corporation..................... 587
16,900 Genuine Parts Company................. 449
14,600 Goodyear Tire & Rubber Company........ 702
6,200 Snap-On Inc. ......................... 202
----------
3,896
----------
AUTOMOBILES AND TRUCKS -- 1.0%
113,900 Ford Motor Company.................... 5,717
61,000 General Motors Corporation............ 3,839
8,300 ITT Industries, Inc. ................. 264
6,300 Navistar International
Corporation++....................... 293
7,400 PACCAR, Inc. ......................... 376
----------
10,489
----------
BANKING -- 5.9%
16,600 Amsouth Bancorporation................ 389
111,100 Banc One Corporation.................. 3,868
71,600 Bank of New York Inc. ................ 2,394
164,200 BankAmerica Corporation............... 9,143
28,000 BankBoston Corporation................ 1,215
29,600 BB&T Corporation...................... 958
79,500 Chase Manhattan Corporation........... 5,992
14,700 Comerica Inc. ........................ 744
25,200 Fifth Third Bancorp................... 1,533
91,100 First Union Corporation............... 3,240
93,146 Firstar Corporation................... 2,387
53,700 Fleet Financial Group, Inc. .......... 1,967
5,400 Golden West Financial Corporation..... 531
21,730 Huntington Bancshares Inc. ........... 577
16,700 J.P. Morgan & Company Inc. ........... 1,908
42,100 KeyCorp............................... 1,087
49,000 Mellon Bank Corporation............... 1,654
59,200 National City Corporation............. 1,580
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
BANKING -- (CONTINUED)
10,500 Northern Trust Corporation............ $ 877
28,700 PNC Bank Corporation.................. 1,512
21,100 Regions Financial Corporation......... 633
9,900 Republic New York Corporation......... 608
15,800 SouthTrust Corporation................ 567
15,100 State Street Corporation.............. 976
16,200 Summit Bancorp........................ 525
30,300 SunTrust Banks, Inc. ................. 1,992
68,500 U.S. Bancorp.......................... 2,068
13,400 Union Planters Corporation............ 546
19,100 Wachovia Corporation.................. 1,502
155,500 Wells Fargo Company................... 6,162
----------
59,135
----------
BEVERAGES -- 2.2%
3,400 Adolph Coors Company, Class B......... 184
44,800 Anheuser-Busch Companies, Inc. ....... 3,139
6,500 Brown-Forman Corporation, Class B..... 405
232,100 Coca-Cola Company/++/................. 11,155
39,900 Coca-Cola Enterprises Inc. ........... 900
138,900 PepsiCo, Inc. ........................ 4,202
40,300 Seagram Company Ltd. ................. 1,834
----------
21,819
----------
BUILDING MATERIALS -- 0.0%+
9,500 Vulcan Materials Company.............. 348
----------
BUSINESS SERVICES -- 0.1%
23,100 Paychex, Inc. ........................ 788
----------
CHEMICALS -- BASIC -- 1.3%
21,600 Air Products & Chemicals Inc. ........ 628
20,700 Dow Chemical Company.................. 2,352
92,200 E.I. duPont de Nemours and Company.... 5,612
7,400 Eastman Chemical Company.............. 296
12,200 Ecolab, Inc. ......................... 416
2,900 FMC Corporation++..................... 140
9,500 Hercules, Inc. ....................... 272
6,700 Mallinckrodt Group Inc. .............. 202
16,400 PPG Industries, Inc. ................. 984
14,800 Praxair Inc. ......................... 681
20,000 Rohm & Haas Company................... 723
12,500 Union Carbide Corporation............. 710
----------
13,016
----------
CHEMICALS -- DIVERSIFIED -- 0.2%
59,500 Monsanto Company...................... 2,123
----------
CHEMICALS -- SPECIALTY -- 0.1%
11,700 Engelhard Corporation................. 213
5,600 Great Lakes Chemical Corporation...... 213
9,500 Sigma-Aldrich Corporation............. 302
6,600 W.R. Grace & Company++................ 106
----------
834
----------
COMPUTER RELATED -- 6.4%
34,000 3Com Corporation++.................... 978
14,900 Apple Computer Inc.++................. 943
13,600 Ceridian Corporation++................ 338
159,900 Compaq Computer Corporation........... 3,668
4,800 Data General Corporation++............ 101
238,600 Dell Computer Corporation++........... 9,976
95,200 EMC Corporation++..................... 6,801
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
COMPUTER RELATED -- (CONTINUED)
29,400 Gateway Inc.++........................ $ 1,306
95,500 Hewlett-Packard Company............... 8,786
11,900 Honeywell Inc. ....................... 1,325
29,800 IMS Health Inc. ...................... 680
170,700 International Business Machines
Corporation......................... 20,719
21,000 Seagate Technology Inc.++............. 647
17,800 Silicon Graphics, Inc.++.............. 195
72,800 Sun Microsystems, Inc.++.............. 6,770
29,300 Unisys Corporation++.................. 1,322
----------
64,555
----------
COMPUTER SERVICES -- 0.6%
58,200 Automatic Data Processing Inc. ....... 2,596
14,900 Computer Sciences Corporation++....... 1,048
46,300 Electronic Data Systems............... 2,451
13,600 Equifax Inc. ......................... 383
----------
6,478
----------
COMPUTER SOFTWARE -- 5.9%
5,800 Adobe Systems Inc. ................... 658
5,600 Autodesk, Inc. ....................... 123
22,200 BMC Software, Inc.++.................. 1,589
16,200 Cabletron Systems Inc.++.............. 254
50,400 Computer Associates International
Inc. ............................... 3,087
34,500 Compuware Corporation++............... 899
40,600 First Data Corporation................ 1,781
480,100 Microsoft Corporation++............... 43,478
31,600 Novell Inc.++......................... 654
135,400 Oracle Systems Corporation++.......... 6,161
25,400 Parametric Technology Corporation++... 343
22,600 Peoplesoft, Inc.++.................... 383
2,500 Shared Medical Systems Corporation.... 117
----------
59,527
----------
CONGLOMERATE -- 1.4%
52,000 AlliedSignal, Inc. ................... 3,117
78,865 Tyco International Ltd. .............. 8,142
45,300 United Technologies Corporation....... 2,687
----------
13,946
----------
CONSTRUCTION -- 0.3%
3,700 Armstrong World Industries, Inc. ..... 166
7,000 Case Corporation...................... 348
5,700 Centex Corporation.................... 169
6,500 Crane Company......................... 146
7,200 Fluor Corporation..................... 290
4,500 Kaufman & Broad Home Corporation...... 93
31,700 Masco Corporation..................... 982
5,100 Owens-Corning Fiberglass
Corporation......................... 111
4,100 Pulte Corporation..................... 89
16,000 Sherwin-Williams Company.............. 335
----------
2,729
----------
CONTAINERS AND PACKAGING -- 0.2%
10,700 Avery-Dennison Corporation............ 565
2,800 Ball Corporation...................... 123
4,900 Bemis Company, Inc.................... 166
11,500 Crown Cork & Seal Company, Inc........ 279
14,600 Owens-Illinois, Inc.++................ 289
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
CONTAINERS AND PACKAGING -- (CONTINUED)
7,900 Sealed Air Corporation++.............. $ 406
5,500 Tupperware Corporation................ 111
----------
1,939
----------
COSMETICS AND TOILETRIES -- 2.1%
5,400 Alberto-Culver Company, Class B....... 125
24,600 Avon Products, Inc.................... 610
54,900 Colgate-Palmolive Company............. 2,512
104,300 Gillette Company...................... 3,540
10,000 International Flavors & Fragrances,
Inc................................. 345
50,100 Kimberly-Clark Corporation............ 2,630
125,000 Procter & Gamble Company.............. 11,719
----------
21,481
----------
DISTRIBUTION AND WHOLESALE -- 0.1%
20,700 Costco Wholesale Corporation++........ 1,490
----------
DIVERSIFIED -- 0.7%
22,900 Corning, Inc.......................... 1,570
2,100 Eastern Enterprises................... 98
15,800 Fortune Brands Inc.................... 510
37,900 Minnesota Mining & Manufacturing
Company............................. 3,640
16,000 Tenneco Inc........................... 272
14,200 Textron Inc........................... 1,099
----------
7,189
----------
DRUGS -- 7.0%
9,500 ALZA Corporation++.................... 407
123,300 American Home Products Corporation.... 5,117
48,200 Amgen Inc.++.......................... 3,928
186,800 Bristol-Myers Squibb Company.......... 12,609
103,500 Eli Lilly and Company................. 6,624
222,000 Merck & Company, Inc./++/............. 14,389
365,200 Pfizer Inc............................ 13,125
47,700 Pharmacia & Upjohn, Inc............... 2,367
138,500 Schering-Plough Corporation........... 6,042
80,000 Warner-Lambert Company................ 5,310
9,000 Watson Pharmaceutical, Inc.++......... 275
----------
70,193
----------
ELECTRIC POWER -- 2.0%
18,000 AES Corporation++..................... 1,061
12,900 Ameren Corporation.................... 488
18,100 American Electric Power Inc........... 618
14,200 Carolina Power & Light Company........ 502
20,100 Central & South West Corporation...... 425
14,900 CINergy Corporation................... 422
11,000 CMS Energy Corporation................ 373
21,400 Consolidated Edison, Inc. ............ 888
14,100 Constell Energy....................... 397
18,100 Dominion Resources, Inc............... 817
13,600 DTE Energy Company.................... 491
34,200 Duke Energy Corporation............... 1,884
32,600 Edison International.................. 793
23,200 Entergy Corporation................... 671
22,100 FirstEnergy Corporation............... 564
9,200 Florida Progress Corporation.......... 426
17,000 FPL Group Inc. ....................... 856
11,900 GPU, Inc. ............................ 388
10,800 New Century Energies, Inc. ........... 361
14,400 Northern States Power Corporation..... 311
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
ELECTRIC POWER -- (CONTINUED)
36,100 P G & E Corporation................... $ 934
28,000 PacifiCorp............................ 564
18,000 PECO Energy Company................... 675
14,800 PP&L Resources Inc. .................. 401
20,700 Public Service Enterprise Group....... 800
28,000 Reliant Energy Inc. .................. 758
65,500 Southern Company...................... 1,686
26,400 Texas Utilities Company............... 985
20,500 Unicom Corporation.................... 757
----------
20,296
----------
ELECTRICAL EQUIPMENT -- 0.4%
40,900 Emerson Electric Company.............. 2,585
7,100 Scientific-Atlanta Inc. .............. 352
5,400 Thomas & Betts Corporation............ 275
8,800 W.W. Grainger Inc. ................... 423
----------
3,635
----------
ELECTRONICS -- 0.7%
35,000 Applied Materials Inc.++.............. 2,719
7,500 Harris Corporation.................... 207
8,300 KLA-Tencor Corporation++.............. 540
14,200 LSI Logic Corporation++............... 731
15,800 National Semiconductor
Corporation++....................... 482
25,300 Solectron Corporation++............... 1,817
4,400 Tektronix, Inc. ...................... 147
----------
6,643
----------
ENVIRONMENTAL -- 0.1%
8,000 Johnson Controls Inc. ................ 530
31,100 Laidlaw Inc. ......................... 210
4,200 Millipore Corporation................. 158
----------
898
----------
EXPLORATION AND DRILLING -- 0.1%
16,700 Burlington Resources Inc. ............ 615
4,600 Helmerich & Payne, Inc. .............. 116
5,600 McDermott International Inc. ......... 113
----------
844
----------
FINANCIAL SERVICES -- 5.4%
42,300 American Express Company.............. 5,695
23,600 American General Corporation.......... 1,491
68,600 Associates First Capital
Corporation......................... 2,470
10,900 Bear Stearns Companies Inc. .......... 419
18,600 Capital One Financial Corporation..... 725
76,800 Charles Schwab Corporation............ 2,587
317,801 Citigroup Inc. ....................... 13,982
10,600 Countrywide Credit Industries,
Inc. ............................... 342
96,400 Fannie Mae............................ 6,043
65,300 Freddie Mac........................... 3,396
45,100 Household International Inc. ......... 1,810
11,100 Lehman Brothers Holdings Inc. ........ 647
24,700 Marsh & McLennan Companies Inc. ...... 1,692
75,400 MBNA Corporation...................... 1,720
34,500 Merrill Lynch & Company Inc. ......... 2,318
53,700 Morgan Stanley Dean Witter &
Company............................. 4,789
13,700 Paine Webber Group, Inc. ............. 497
13,400 Providian Financial Corporation....... 1,061
15,300 SLM Holding Corporation............... 658
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES -- (CONTINUED)
25,400 Synovus Financial Corporation......... $ 475
55,900 Washington Mutual, Inc. .............. 1,635
----------
54,452
----------
FOOD PRODUCERS -- 1.9%
58,030 Archer-Daniels-Midland Company........ 707
26,300 Bestfoods............................. 1,276
41,000 Campbell Soup Company................. 1,604
45,900 ConAgra Inc. ......................... 1,036
14,400 General Mills Inc. ................... 1,168
33,800 H.J. Heinz Company.................... 1,453
13,200 Hershey Foods Corporation............. 643
38,200 Kellogg Company....................... 1,430
30,600 Nabisco Group Holdings Corporation.... 459
22,500 Pioneer Hi-Bred International......... 896
12,700 Quaker Oats Company................... 786
30,700 Ralston Purina Group.................. 854
85,000 Sara Lee Corporation.................. 1,992
53,800 Unilever NV........................... 3,665
10,900 Wm. Wrigley Jr. Company............... 750
----------
18,719
----------
FOREST AND PAPER PRODUCTS -- 0.6%
5,400 Boise Cascade Corporation............. 197
9,000 Champion International Corporation.... 462
20,800 Fort James Corporation................ 555
16,200 Georgia-Pacific Corporation........... 656
38,700 International Paper Company........... 1,859
10,100 Louisiana Pacific Corporation......... 158
9,500 Mead Corporation...................... 327
2,700 Potlatch Corporation.................. 111
5,300 Temple-Inland Inc. ................... 321
9,400 Westvaco Corporation.................. 241
18,900 Weyerhaeuser Company.................. 1,089
10,400 Willamette Industries Inc. ........... 449
----------
6,425
----------
FURNITURE AND APPLIANCES -- 0.1%
8,200 Black & Decker Corporation............ 375
8,300 Maytag Corporation.................... 276
8,400 Stanley Works......................... 212
7,100 Whirlpool Corporation................. 463
----------
1,326
----------
HOUSEHOLD PRODUCTS -- 0.2%
22,200 Clorox Company........................ 849
26,500 Newell Rubbermaid Inc. ............... 757
----------
1,606
----------
INSURANCE -- 2.7%
13,300 Aetna Life and Casualty Company....... 655
25,100 Aflac, Inc. .......................... 1,051
75,900 Allstate Corporation.................. 1,893
145,650 American International Group, Inc. ... 12,663
24,100 Aon Corporation....................... 712
15,200 Chubb Corporation..................... 757
19,100 CIGNA Corporation..................... 1,485
15,500 Cincinnati Financial Corporation...... 582
30,500 Conseco Inc. ......................... 589
21,400 Hartford Financial Services Group,
Inc. ............................... 875
9,900 Jefferson-Pilot Corporation........... 626
18,800 Lincoln National Corporation Ltd. .... 706
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
INSURANCE -- (CONTINUED)
10,200 Loews Corporation..................... $ 716
9,400 MBIA Inc. ............................ 438
10,200 MGIC Investment Corporation........... 487
6,900 Progressive Corporation............... 564
12,800 SAFECO Corporation.................... 358
21,300 St. Paul Companies Inc. .............. 586
12,600 Torchmark Corporation................. 326
22,400 UnumProvident Corporation............. 659
----------
26,728
----------
INTERNET -- 1.1%
104,000 America Online Inc.++................. 10,816
----------
MACHINERY AND EQUIPMENT -- 0.8%
2,100 Briggs & Stratton Corporation......... 123
33,400 Caterpillar Inc. ..................... 1,831
8,900 Cooper Industries Inc. ............... 416
4,000 Cummins Engine Company, Inc. ......... 199
21,800 Deere & Company....................... 843
20,100 Dover Corporation..................... 822
3,700 Foster Wheeler Corporation............ 45
23,500 Illinois Tool Works, Inc. ............ 1,752
15,600 Ingersoll-Rand Company................ 857
3,400 Milacron Inc. ........................ 60
800 NACCO Industries Inc., Class A........ 56
11,700 Pall Corporation...................... 271
10,200 Parker Hannifin Corporation........... 457
14,800 Thermo Electron Corporation++......... 199
5,900 Timken Company........................ 95
----------
8,026
----------
MANUFACTURING -- 3.8%
12,800 Danaher Corporation................... 674
307,700 General Electric Company/++/.......... 36,482
9,600 PE Corp - PE Biosystems Group......... 694
----------
37,850
----------
MEDIA -- 2.4%
67,000 CBS Corporation++..................... 3,099
31,200 Clear Channel Communications,
Inc.++.............................. 2,492
69,700 Comcast Corporation, Class A.......... 2,779
6,700 King World Productions, Inc.++........ 251
56,900 MediaOne Group, Inc.++................ 3,887
16,900 Omnicom Group......................... 1,338
121,700 Time Warner Inc. ..................... 7,394
64,900 Viacom Inc., Class B++................ 2,742
----------
23,982
----------
MEDICAL PRODUCTS AND SUPPLIES -- 2.9%
143,000 Abbott Laboratories................... 5,255
6,300 Allergan, Inc. ....................... 693
5,400 Bausch & Lomb Inc. ................... 356
27,400 Baxter International Inc. ............ 1,651
23,500 Becton Dickinson & Company............ 659
10,500 Biomet, Inc. ......................... 276
37,300 Boston Scientific Corporation++....... 921
4,800 C.R. Bard Inc. ....................... 226
25,600 Cardinal Health, Inc. ................ 1,395
28,500 Guidant Corporation................... 1,528
126,500 Johnson & Johnson..................... 11,623
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
MEDICAL PRODUCTS AND SUPPLIES -- (CONTINUED)
109,800 Medtronic, Inc. ...................... $ 3,898
8,000 St. Jude Medical Inc.++............... 252
----------
28,733
----------
MEDICAL SERVICES -- 0.4%
53,400 Columbia/HCA Healthcare Corporation... 1,130
26,000 HBO & Company, Inc. .................. 754
39,000 HEALTHSOUTH Corporation++............. 236
15,800 Humana Inc.++......................... 109
10,400 Manor Care, Inc.++.................... 179
29,300 Tenet Healthcare Corporation++........ 515
16,300 United Healthcare Corporation......... 794
6,400 Wellpoint Health Networks, Inc.++..... 365
----------
4,082
----------
METALS AND MINING -- 0.6%
21,300 Alcan Aluminium Ltd. ................. 666
34,700 Alcoa Inc. ........................... 2,153
3,700 ASARCO Inc. .......................... 99
36,700 Barrick Gold Corporation.............. 798
8,500 Cyprus Amax Minerals Company.......... 167
15,300 Freeport-McMoran Copper & Gold,
Inc. ............................... 238
24,400 Homestake Mining Company.............. 224
18,100 Inco Ltd. ............................ 387
15,800 Newmont Mining Corporation............ 409
17,600 Niagara Mohawk Holdings Inc.++........ 272
5,500 Phelps Dodge Corporation.............. 303
30,600 Placer Dome Inc. ..................... 455
6,100 Reynolds Metals Company............... 368
----------
6,539
----------
NETWORKING EQUIPMENT AND PRODUCTS -- 2.8%
305,500 Cisco Systems, Inc.++................. 20,946
6,800 Network Appliance, Inc.++............. 487
124,000 Nortel Networks Corporation........... 6,324
----------
27,757
----------
OFFICE EQUIPMENT -- 0.5%
14,000 Ikon Office Solutions Inc. ........... 150
12,100 Lexmark International Group, Inc.,
Class A++........................... 974
25,200 Pitney Bowes, Inc. ................... 1,536
62,200 Xerox Corporation..................... 2,608
----------
5,268
----------
OIL -- DOMESTIC -- 1.0%
8,500 Amerada Hess Corporation.............. 521
6,900 Ashland Inc. ......................... 232
30,300 Atlantic Richfield Company............ 2,685
7,800 Columbia Energy Group................. 432
58,400 Conoco, Inc. ......................... 1,599
8,100 Kerr-McGee Corporation................ 446
32,700 Occidental Petroleum Corporation...... 756
23,700 Phillips Petroleum Company............ 1,155
8,500 Sunoco, Inc. ......................... 233
22,800 Unocal Corporation.................... 845
29,100 USX-Marathon Group Inc. .............. 851
----------
9,755
----------
OIL -- INTERNATIONAL -- 4.6%
11,300 Anadarko Petroleum Corporation........ 345
10,500 Apache Corporation.................... 453
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
OIL -- INTERNATIONAL -- (CONTINUED)
61,700 Chevron Corporation................... $ 5,476
228,400 Exxon Corporation/++/................. 17,344
73,600 Mobil Corporation..................... 7,415
201,700 Royal Dutch Petroleum Company......... 11,913
50,400 Texaco Inc. .......................... 3,182
23,700 Union Pacific Resources Group Inc. ... 381
----------
46,509
----------
OIL AND GAS -- 0.3%
66,400 Enron Corporation..................... 2,739
----------
OIL FIELD SERVICES & EQUIPMENT -- 0.6%
30,800 Baker Hughes Inc. .................... 893
41,400 Halliburton Company................... 1,697
7,800 Rowan Companies Inc.++................ 127
51,500 Schlumberger Ltd. .................... 3,210
22,600 Sempra Energy......................... 470
----------
6,397
----------
OIL PRODUCTION -- 0.0%+
14,600 Tosco Corporation..................... 369
----------
PHOTO AND OPTICAL -- 0.2%
30,300 Eastman Kodak Company................. 2,286
4,200 Polaroid Corporation.................. 109
----------
2,395
----------
PRINTING AND PUBLISHING -- 0.7%
6,400 American Greetings Corporation, Class
A................................... 165
7,400 Deluxe Corporation.................... 252
8,500 Dow Jones & Company Inc. ............. 454
15,400 Dun & Bradstreet Corporation.......... 460
26,300 Gannett Company, Inc. ................ 1,819
6,700 Harcourt General Inc. ................ 279
3,200 Jostens Inc. ......................... 61
7,500 Knight-Ridder Inc. ................... 412
18,600 McGraw-Hill Companies, Inc. .......... 900
4,900 Meredith Corporation.................. 178
16,600 New York Times Company, Class A....... 623
12,300 R.R. Donnelley & Sons Company......... 355
6,800 Times Mirror Company, Class A......... 448
22,200 Tribune Company....................... 1,103
----------
7,509
----------
PROFESSIONAL SERVICES -- 0.2%
23,700 Franklin Resources, Inc. ............. 729
9,100 H & R Block, Inc. .................... 395
26,400 Interpublic Group Companies, Inc. .... 1,086
25,500 Service Corporation International..... 269
----------
2,479
----------
RECREATION -- 0.9%
8,700 Brunswick Corporation................. 216
57,600 Carnival Corporation.................. 2,506
3,200 Fleetwood Enterprises Inc. ........... 65
12,000 Harrah's Entertainment Inc.++......... 333
18,400 Hasbro, Inc. ......................... 394
39,200 Mattel, Inc. ......................... 745
18,700 Mirage Resorts, Inc.++................ 263
193,700 Walt Disney Company................... 5,012
----------
9,534
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
RESTAURANTS AND LODGING -- 0.9%
72,200 Cendant Corporation++................. $ 1,282
12,600 Darden Restaurants Inc. .............. 246
24,300 Hilton Hotels Corporation............. 240
23,400 Marriott International Inc., Class
A................................... 765
127,700 McDonald's Corporation................ 5,491
14,400 Tricon Global Restaurants Inc.++...... 590
11,500 Wendy's International Inc. ........... 303
----------
8,917
----------
RETAIL -- FOOD -- 0.7%
39,600 Albertson's Inc. ..................... 1,567
3,500 Great Atlantic & Pacific Tea
Company, Inc. ...................... 106
77,700 Kroger Company++...................... 1,714
46,700 Safeway, Inc.++....................... 1,778
11,200 Supervalu Inc. ....................... 244
31,100 SYSCO Corporation..................... 1,090
14,000 Winn-Dixie Stores Inc. ............... 416
----------
6,915
----------
RETAIL -- GENERAL -- 2.8%
10,300 Consolidated Stores Corporation++..... 227
41,600 Dayton Hudson Corporation............. 2,499
10,000 Dillards, Inc., Class A............... 203
20,800 Dollar General Corporation............ 642
19,700 Federated Department Stores, Inc.++... 861
24,700 J.C. Penney Company, Inc. ............ 849
46,500 K Mart Corporation++.................. 543
31,400 May Department Stores Company......... 1,144
35,800 Sears, Roebuck and Company............ 1,123
23,400 Toys R Us, Inc.++..................... 351
418,600 Wal-Mart Stores, Inc. ................ 19,910
----------
28,352
----------
RETAIL -- SPECIALTY -- 2.5%
19,200 Best Buy Company, Inc.++.............. 1,192
18,800 Circuit City Stores - Circuit City
Group............................... 793
36,700 CVS Corporation....................... 1,498
80,800 Gap Inc. ............................. 2,585
139,400 Home Depot Inc. ...................... 9,565
15,300 Kohls Corporation++................... 1,012
20,100 Limited Inc. ......................... 769
3,600 Longs Drug Stores Corporation......... 108
34,900 Lowe's Companies Inc. ................ 1,701
13,400 Nordstrom Inc. ....................... 362
35,100 Office Depot, Inc.++.................. 358
4,900 PEP Boys - Manny, Moe & Jack.......... 73
24,300 Rite Aid Corporation.................. 336
43,700 Staples Inc.++........................ 953
18,200 Tandy Corporation..................... 941
30,300 TJX Companies Inc. ................... 850
94,200 Walgreen Company...................... 2,390
----------
25,486
----------
SEMICONDUCTORS -- 3.1%
13,800 Advanced Micro Devices++.............. 237
312,200 Intel Corporation/++/................. 23,201
23,500 Micron Technology Inc.++.............. 1,564
73,900 Texas Instruments Inc. ............... 6,078
----------
31,080
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
STEEL -- 0.1%
18,100 Allegheny Teledyne Inc. .............. $ 305
12,300 Bethlehem Steel Corporation++......... 91
8,200 Nucor Corporation..................... 391
8,300 USX - U.S. Steel Group Inc. .......... 214
8,600 Worthington Industries................ 146
----------
1,147
----------
TELECOMMUNICATIONS -- 3.7%
12,300 ADC Telecommunications, Inc.++........ 516
7,800 Andrew Corporation++.................. 136
16,300 General Instruments Corporation++..... 784
72,700 Global Crossing, Ltd. ................ 1,927
285,900 Lucent Technologies, Inc. ............ 18,547
56,700 Motorola, Inc. ....................... 4,990
31,500 Nextel Communications Inc.++.......... 2,136
15,100 QUALCOMM Inc.++....................... 2,857
41,300 Sprint Corporation (PCS Group)++...... 3,079
36,900 Tellabs, Inc.++....................... 2,101
----------
37,073
----------
TOBACCO -- 0.8%
223,600 Philip Morris Companies Inc. ......... 7,644
16,600 UST Inc. ............................. 501
----------
8,145
----------
TRANSPORTATION -- 0.8%
14,400 AMR Corporation++..................... 785
44,200 Burlington Northern Santa Fe Inc. .... 1,215
20,500 CSX Corporation....................... 869
13,200 Delta Air Lines, Inc. ................ 640
28,100 FDX Corporation++..................... 1,089
10,300 Kansas City Southern Industries....... 478
35,700 Norfolk Southern Corporation.......... 875
47,450 Southwest Airlines Company............ 721
23,300 Union Pacific Corporation............. 1,119
7,000 US Airways Group Inc.++............... 184
----------
7,975
----------
TRUCKING AND SHIPPING -- 0.0%+
6,700 Ryder System Inc. .................... 137
----------
UTILITIES -- NATURAL GAS -- 0.4%
20,100 Coastal Corporation................... 823
9,000 Consolidated Natural Gas Company...... 561
4,500 NICOR Inc. ........................... 167
2,900 Oneok Inc. ........................... 88
3,300 Peoples Energy Corporation............ 116
10,300 Sonat Inc. ........................... 409
40,700 Williams Companies, Inc. ............. 1,524
----------
3,688
----------
UTILITIES -- TELEPHONE -- 7.6%
28,800 ALLTEL Corporation.................... 2,027
103,400 Ameritech Corporation................. 6,947
299,300 AT&T Corporation...................... 13,021
146,100 Bell Atlantic Corporation............. 9,834
178,200 BellSouth Corporation................. 8,019
13,100 CenturyTel, Inc. ..................... 532
91,500 GTE Corporation....................... 7,034
175,000 MCI Worldcom, Inc.++.................. 12,578
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
UTILITIES -- TELEPHONE -- (CONTINUED)
184,800 SBC Communications Inc. .............. $ 9,436
81,400 Sprint Corporation (FON Group)........ 4,416
47,400 U.S. West Inc. ....................... 2,705
----------
76,549
----------
WASTE MANAGEMENT -- 0.1%
16,700 Allied Waste Industries, Inc.++....... 195
57,200 Waste Management Inc.................. 1,101
----------
1,296
----------
TOTAL COMMON STOCKS
(Cost $575,048)..................... 993,527
----------
RIGHTS -- 0.0%+
(Cost $0)
4 United States Surgical Rights(++)..... 0
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 3.7%
(Cost $37,018)
37,018 Nations Cash Reserves#.............. 37,018
----------
TOTAL INVESTMENTS (Cost
$612,066*)................. 102.3% 1,030,545
----------
OTHER ASSETS AND LIABILITIES
(NET)...................... (2.3)%
Receivable for Fund shares sold..... $ 2,611
Dividends receivable................ 1,200
Interest receivable................. 51
Variation margin.................... 35
Prepaid expenses and other assets... 49
Collateral on securities loaned..... (23,452)
Payable for Fund shares redeemed.... (434)
Investment advisory fee payable..... (42)
Administration fee payable.......... (195)
Shareholder servicing and
distribution fees payable......... (4)
Due to custodian.................... (13)
Payable for investment securities
purchased......................... (3,081)
Accrued Trustees'/Directors' fees
and expenses...................... (36)
Accrued expenses and other
liabilities....................... (133)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................. (23,444)
----------
NET ASSETS................... 100.0% $1,007,101
==========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................ $ 253
Accumulated net realized gain on
investments sold and futures
contracts......................... 3,900
Net unrealized appreciation of
investments and futures
contracts......................... 417,988
Paid-in capital..................... 584,960
----------
NET ASSETS.......................... $1,007,101
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS FUNDS
Nations Equity Index Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($986,201,405 / 39,551,406 shares
outstanding)...................... $24.93
------
------
INVESTOR A SHARES:
Net asset value, offering and
redemption price per share
($20,899,608 / 842,317 shares
outstanding)...................... $24.81
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $438,055 and gross
depreciation of $19,576 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$612,066.
++ Non-income producing security.
/++/ A portion of the security is segregated as collateral for futures
contracts.
+ Amount represents less than 0.1%.
(++) Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by TradeStreet Investment Associates,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 9). The portion that represents cash
collateral is $23,452.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS FUNDS
Nations Marsico Growth & Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.5%
ADVERTISING AND MARKETING SERVICES -- 0.7%
48,511 Young and Rubicam Inc. ................ $ 2,134
--------
BANKING -- 1.1%
39,018 Northern Trust Corporation............. 3,258
--------
BEVERAGES -- 3.2%
101,450 Anheuser-Busch Companies, Inc. ........ 7,108
55,000 Beringer Wine Estates Holdings,
Inc.++............................... 2,258
--------
9,366
--------
COMPUTER RELATED -- 11.5%
173,926 Dell Computer Corporation++............ 7,273
236,611 EMC Corporation++...................... 16,904
88,000 Fujitsu................................ 2,744
73,143 Sun Microsystems, Inc.++............... 6,802
--------
33,723
--------
COMPUTER SOFTWARE -- 4.4%
142,262 Microsoft Corporation++................ 12,884
--------
CONSTRUCTION -- 0.4%
67,191 M.D.C. Holdings, Inc. ................. 1,088
--------
COSMETICS AND TOILETRIES -- 0.7%
55,536 Estee Lauder Companies Inc. ........... 2,169
--------
DRUGS -- 1.9%
153,768 Pfizer Inc. ........................... 5,526
--------
ELECTRICAL COMPONENTS -- 0.7%
105,000 NEC Corporation........................ 2,115
--------
ELECTRONICS -- 3.0%
150,000 Flextronics International Ltd.++....... 8,728
--------
FINANCIAL SERVICES -- 7.1%
303,584 Citigroup Inc. ........................ 13,358
121,890 Fannie Mae............................. 7,641
--------
20,999
--------
INTERNET -- 1.7%
49,119 America Online Inc.++.................. 5,108
--------
MANUFACTURING -- 2.8%
69,452 General Electric Company............... 8,234
--------
MEDIA -- 7.5%
126,910 MediaOne Group, Inc.++................. 8,670
181,902 Time Warner Inc. ...................... 11,051
33,213 UnitedGlobalCom Inc.++................. 2,379
--------
22,100
--------
MEDICAL PRODUCTS AND SUPPLIES -- 6.5%
139,640 Cardinal Health, Inc. ................. 7,610
64,327 Genentech, Inc.++...................... 9,412
70,769 Priority Healthcare Corporation++...... 2,185
--------
19,207
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
NETWORKING EQUIPMENT AND PRODUCTS -- 4.1%
127,012 Cisco Systems, Inc.++.................. $ 8,708
19,165 Juniper Networks, Inc.++............... 3,489
--------
12,197
--------
OIL -- INTERNATIONAL -- 3.5%
71,659 Anadarko Petroleum Corporation......... 2,190
135,507 Royal Dutch Petroleum Company.......... 8,003
--------
10,193
--------
OIL FIELD SERVICES & EQUIPMENT -- 3.9%
78,672 Halliburton Company.................... 3,226
130,729 Schlumberger Ltd. ..................... 8,146
--------
11,372
--------
PRINTING AND PUBLISHING -- 0.6%
41,441 Houghton Mifflin Company............... 1,684
--------
RENTAL AUTO AND EQUIPMENT -- 1.5%
100,734 Hertz Corporation, Inc. ............... 4,432
--------
RESTAURANTS AND LODGING -- 3.5%
98,835 Four Seasons Hotels Inc. .............. 3,614
156,406 McDonald's Corporation................. 6,725
--------
10,339
--------
RETAIL -- GENERAL -- 3.1%
193,712 Wal-Mart Stores, Inc. ................. 9,213
--------
RETAIL -- SPECIALTY -- 6.5%
86,018 Best Buy Company, Inc.++............... 5,338
134,265 Home Depot Inc. ....................... 9,214
78,346 Tiffany & Company...................... 4,696
--------
19,248
--------
SEMICONDUCTORS -- 1.3%
47,382 Texas Instruments Inc. ................ 3,897
--------
TELECOMMUNICATIONS -- 11.6%
32,872 JDS Uniphase Corporation++............. 3,741
125,672 Lucent Technologies, Inc. ............. 8,153
95,000 QUALCOMM Inc.++........................ 17,974
56,210 Sprint Corporation (PCS Group)++....... 4,191
--------
34,059
--------
TRANSPORTATION -- 2.7%
52,025 Southwest Airlines Company............. 790
107,789 UAL Corporation++...................... 7,040
--------
7,830
--------
TOTAL COMMON STOCKS
(Cost $243,460)...................... 281,103
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS FUNDS
Nations Marsico Growth & Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CONVERTIBLE BONDS AND NOTES -- 0.9%
(Cost $2,700)
TELECOMMUNICATIONS -- 0.9%
$ 2,700 Level 3 Communications, Inc.,
6.000% 09/15/09...................... $ 2,676
--------
CORPORATE BONDS AND NOTES -- 0.2%
(Cost $534)
CONSTRUCTION -- 0.2%
550 M.D.C. Holdings, Inc.,
8.375% 02/01/08...................... 501
--------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 4.4%
(Cost $13,000)
FEDERAL HOME LOAN BANK (FHLB) -- 4.4%
13,000 Discount note 10/01/99................. 12,998
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 8.1%
(Cost $23,700)
23,700 Nations Cash Reserves#............... 23,700
--------
TOTAL INVESTMENTS
(Cost $283,394*)............ 109.1% 320,978
--------
OTHER ASSETS AND LIABILITIES
(NET)....................... (9.1)%
Cash................................. $ 2,451
Receivable for investment securities
sold............................... 14,449
Dividends receivable................. 101
Interest receivable.................. 13
Collateral on securities loaned...... (23,637)
Administration fee payable........... (39)
Shareholder servicing and
distribution fees payable.......... (190)
Payable for investment securities
purchased.......................... (19,284)
Accrued Trustees'/Directors' fees and
expenses........................... (6)
Accrued expenses and other
liabilities........................ (596)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. (26,738)
--------
NET ASSETS.................... 100.0% $294,240
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
- ----------------------------------------------------------
- -------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Net investment loss.................. $ (958)
Accumulated net realized loss on
investments sold, written options
and foreign currency and net other
assets............................. (3,998)
Net unrealized appreciation of
investments and foreign currency
and net other assets............... 37,584
Paid-in capital...................... 261,612
--------
NET ASSETS........................... $294,240
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($60,459,452 / 3,892,533 shares
outstanding)....................... $15.53
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price
per share ($69,017,908 / 4,437,716
shares outstanding)................ $15.55
-----
-----
Maximum sales charge................. 5.75%
Maximum offering price per share..... $16.50
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($153,324,822 / 9,963,131
shares outstanding)................
$15.39
-----
-----
INVESTOR C SHARES:
Net asset value and offering price
per
share+ ($11,437,947 / 742,344
shares outstanding)................
$15.41
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $44,872 and gross
depreciation of $7,288 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$283,394.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$23,637.
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS FUNDS
Nations Blue Chip Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- ----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 100.1%
(Cost $686,015)
Nations Master Investment Trust, Blue
Chip Portfolio*.................... $858,215
--------
TOTAL INVESTMENTS
(Cost $686,015)............. 100.1% 858,215
--------
OTHER ASSETS AND LIABILITIES
(NET)....................... (0.1)%
Receivable for Fund shares sold...... $ 3
Prepaid expenses and other assets.... 224
Administration fee payable........... (493)
Shareholder servicing and
distribution fees payable.......... (302)
Distributions payable................ (187)
Accrued Trustees'/Directors' fees
and expenses....................... (6)
Accrued expenses and other
liabilities........................ (247)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. (1,008)
--------
NET ASSETS.................... 100.0% $857,207
========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................. $ 244
Accumulated net realized gain on
investments sold................... 119,257
Net unrealized appreciation of
investments........................ 172,200
Paid-in capital...................... 565,506
--------
NET ASSETS........................... $857,207
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($30,277,715 / 876,345 shares
outstanding)....................... $34.55
------
------
INVESTOR A SHARES:
Net asset value and redemption price
per share
($358,743,380 / 10,388,441 shares
outstanding)....................... $34.53
------
------
Maximum sales charge................. 5.75%
Maximum offering price per share..... $36.64
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($36,926,982 / 1,077,061
shares outstanding)................
$34.28
------
------
INVESTOR C SHARES:
Net asset value and offering price
per
share+ ($12,150,448 / 355,171
shares outstanding)................
$34.21
------
------
SEAFIRST SHARES:
Net asset value, offering and
redemption price per share
($419,108,091 / 13,771,489 shares
outstanding)....................... $30.43
------
------
</TABLE>
- ---------------
*The financial statements of the Blue Chip Master Portfolio, including its
portfolio of investments, are included elsewhere within this report and should
be read in conjunction with the Blue Chip Fund's financial statement.
+The redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS FUNDS
Nations Strategic Equity Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.0%
BANKING -- 0.8%
35,000 Northern Trust Corporation............ $ 2,923
--------
BEVERAGES -- 1.1%
86,000 Coca-Cola Company..................... 4,133
--------
CHEMICALS -- BASIC -- 1.6%
95,000 E.I. duPont de Nemours and Company.... 5,783
--------
COMPUTER RELATED -- 8.4%
159,000 Dell Computer Corporation++........... 6,648
97,000 EMC Corporation++..................... 6,929
94,000 International Business Machines
Corporation......................... 11,410
64,000 Sun Microsystems, Inc.++.............. 5,952
--------
30,939
--------
COMPUTER SOFTWARE -- 5.1%
209,000 Microsoft Corporation++............... 18,928
--------
CONGLOMERATE -- 2.9%
85,000 AlliedSignal, Inc. ................... 5,095
53,000 Tyco International Ltd. .............. 5,472
--------
10,567
--------
CONTAINERS AND PACKAGING -- 1.2%
87,000 Avery-Dennison Corporation............ 4,589
--------
COSMETICS AND TOILETRIES -- 1.4%
30,000 Gillette Company...................... 1,018
45,000 Procter & Gamble Company.............. 4,219
--------
5,237
--------
DISTRIBUTION AND WHOLESALE -- 1.2%
63,000 Costco Wholesale Corporation++........ 4,536
--------
DRUGS -- 9.7%
70,000 Amgen Inc.++.......................... 5,705
134,000 Bristol-Myers Squibb Company.......... 9,044
89,000 Eli Lilly and Company................. 5,696
79,000 Merck & Company, Inc. ................ 5,120
243,000 Pfizer Inc. .......................... 8,733
43,000 Schering-Plough Corporation........... 1,876
--------
36,174
--------
ELECTRIC POWER -- 1.1%
68,000 AES Corporation++..................... 4,012
--------
FINANCIAL SERVICES -- 8.7%
60,000 Capital One Financial Corporation..... 2,340
118,000 Charles Schwab Corporation............ 3,975
208,000 Citigroup Inc. ....................... 9,151
104,000 Freddie Mac........................... 5,408
78,000 Merrill Lynch & Company Inc. ......... 5,241
37,000 Morgan Stanley Dean Witter &
Company............................. 3,300
36,000 Providian Financial Corporation....... 2,851
--------
32,266
--------
INSURANCE -- 2.3%
96,000 American International Group, Inc. ... 8,346
--------
MACHINERY AND EQUIPMENT -- 2.5%
60,000 Illinois Tool Works, Inc. ............ 4,474
86,000 Ingersoll-Rand Company................ 4,724
--------
9,198
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
MANUFACTURING -- 4.3%
133,000 General Electric Company.............. $ 15,769
--------
MEDIA -- 1.7%
104,000 Time Warner Inc. ..................... 6,318
--------
MEDICAL PRODUCTS AND SUPPLIES -- 4.5%
111,000 Abbott Laboratories................... 4,079
104,000 Guidant Corporation................... 5,577
74,000 Johnson & Johnson..................... 6,799
--------
16,455
--------
NETWORKING EQUIPMENT AND PRODUCTS -- 3.3%
176,000 Cisco Systems, Inc.++................. 12,067
--------
OIL -- INTERNATIONAL -- 2.7%
38,000 BP Amoco plc, ADR..................... 4,211
78,000 Exxon Corporation..................... 5,923
--------
10,134
--------
PRINTING AND PUBLISHING -- 0.7%
54,000 McGraw-Hill Companies, Inc. .......... 2,612
--------
PROFESSIONAL SERVICES -- 0.9%
80,000 Interpublic Group Companies, Inc. .... 3,290
--------
RECREATION -- 1.0%
81,000 Carnival Corporation.................. 3,524
--------
RESTAURANTS AND LODGING -- 1.0%
113,000 Marriott International Inc., Class
A................................... 3,694
--------
RETAIL -- FOOD -- 1.1%
107,000 Safeway, Inc.++....................... 4,073
--------
RETAIL -- GENERAL -- 3.2%
248,000 Wal-Mart Stores, Inc. ................ 11,796
--------
RETAIL -- SPECIALTY -- 5.0%
151,000 Gap Inc. ............................. 4,832
91,000 Home Depot Inc. ...................... 6,245
51,000 Lowe's Companies Inc. ................ 2,486
191,000 Walgreen Company...................... 4,847
--------
18,410
--------
SEMICONDUCTORS -- 5.1%
172,000 Intel Corporation..................... 12,781
60,000 Linear Technology Corporation......... 3,527
37,000 Xilinx, Inc.++........................ 2,425
--------
18,733
--------
TELECOMMUNICATIONS -- 7.3%
173,000 Lucent Technologies, Inc. ............ 11,223
70,000 Nextel Communications Inc.++.......... 4,747
38,000 Nokia Corporation, Class A, ADR....... 3,413
19,000 QUALCOMM Inc.++....................... 3,595
87,000 Western Wireless Corporation++........ 3,901
--------
26,879
--------
TOBACCO -- 0.7%
75,000 Philip Morris Companies Inc. ......... 2,564
--------
TRANSPORTATION -- 1.0%
92,000 FDX Corporation++..................... 3,565
--------
UTILITIES -- NATURAL GAS -- 1.3%
116,000 Coastal Corporation................... 4,749
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS FUNDS
Nations Strategic Equity Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- ------------------------------------------------------------
<C> <S> <C>
UTILITIES -- TELEPHONE -- 6.2%
147,000 AT&T Corporation...................... $ 6,395
56,000 BellSouth Corporation................. 2,520
115,000 MCI Worldcom, Inc.++.................. 8,265
108,000 Sprint Corporation (FON Group)........ 5,859
--------
23,039
--------
TOTAL COMMON STOCKS
(Cost $300,987)..................... 365,302
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 4.7%
(Cost $17,418)
17,418 Nations Cash Reserves#............... 17,418
--------
TOTAL INVESTMENTS
(Cost $318,405*).......... 103.7% 382,720
--------
OTHER ASSETS AND
LIABILITIES (NET)......... (3.7)%
Cash................................. $ 1
Receivable for Fund shares sold...... 1,527
Dividends receivable................. 255
Interest receivable.................. 51
Prepaid expenses..................... 9
Payable for Fund shares redeemed..... (75)
Investment advisory fee payable...... (197)
Administration fee payable........... (70)
Payable for investment securities
purchased.......................... (15,126)
Accrued Trustees'/Directors' fees
and expenses....................... (7)
Accrued expenses and other
liabilities........................ (48)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................. (13,680)
--------
NET ASSETS.................. 100.0% $369,040
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Net investment loss.................. $ (113)
Accumulated net realized gain on
investments sold................... 2,079
Net unrealized appreciation of
investments........................ 64,315
Paid-in capital...................... 302,759
--------
NET ASSETS........................... $369,040
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($368,301,742 / 27,180,898 shares
outstanding)....................... $13.55
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price
per share ($307,317 / 22,710 shares
outstanding)....................... $13.53
-----
-----
Maximum sales charge................. 5.75%
Maximum offering price per share..... $14.36
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($92,632 / 6,851 shares
outstanding)....................... $13.52
-----
-----
INVESTOR C SHARES:
Net asset value and offering price
per share+ ($337,947 / 24,974
shares outstanding)................ $13.53
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $71,506 and gross
depreciation of $7,191 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$318,405.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS FUNDS
Nations Capital Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.3%
APPAREL AND TEXTILES -- 1.5%
211,910 Nike, Inc., Class B.................... $ 12,052
--------
BANKING -- 0.9%
96,445 Chase Manhattan Corporation............ 7,270
--------
BEVERAGES -- 1.6%
435,915 PepsiCo, Inc. ......................... 13,186
--------
COMPUTER RELATED -- 9.6%
364,490 Dell Computer Corporation++............ 15,240
307,320 EMC Corporation++...................... 21,954
132,835 International Business Machines
Corporation.......................... 16,123
273,445 Sun Microsystems, Inc.++............... 25,430
--------
78,747
--------
COMPUTER SERVICES -- 0.7%
193,750 Equifax Inc. .......................... 5,449
--------
COMPUTER SOFTWARE -- 7.6%
659,280 Compuware Corporation++................ 17,182
375,340 Microsoft Corporation++................ 33,992
225,440 Oracle Systems Corporation++........... 10,258
--------
61,432
--------
CONGLOMERATE -- 5.4%
274,335 Tyco International Ltd. ............... 28,325
257,675 United Technologies Corporation........ 15,283
--------
43,608
--------
DRUGS -- 11.2%
254,255 American Home Products Corporation..... 10,552
222,970 Bristol-Myers Squibb Company........... 15,050
506,800 Elan Corporation ADR++................. 17,008
163,650 Merck & Company, Inc. ................. 10,607
290,780 Pfizer Inc. ........................... 10,450
258,995 Schering-Plough Corporation............ 11,299
248,015 Warner-Lambert Company................. 16,462
--------
91,428
--------
FINANCIAL SERVICES -- 6.5%
396,475 Capital One Financial Corporation...... 15,463
216,110 Fannie Mae............................. 13,547
225,045 Household International Inc. .......... 9,030
654,320 MBNA Corporation....................... 14,927
--------
52,967
--------
HOUSEHOLD PRODUCTS -- 1.1%
226,890 Clorox Company......................... 8,679
--------
INSURANCE -- 2.9%
132,002 American International Group, Inc. .... 11,476
407,365 UnumProvident Corporation.............. 11,992
--------
23,468
--------
INTERNET -- 2.3%
177,090 America Online Inc.++.................. 18,417
--------
MANUFACTURING -- 4.0%
271,940 General Electric Company............... 32,242
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
MEDIA -- 3.9%
211,675 AMFM Inc.++............................ $ 12,886
219,800 CBS Corporation++...................... 10,166
143,260 Time Warner Inc. ...................... 8,703
--------
31,755
--------
MEDICAL PRODUCTS AND SUPPLIES -- 4.1%
148,365 Baxter International Inc............... 8,939
208,580 Guidant Corporation.................... 11,185
370,350 Medtronic, Inc. ....................... 13,148
--------
33,272
--------
MEDICAL SERVICES -- 1.1%
187,045 United Healthcare Corporation.......... 9,107
--------
NETWORKING EQUIPMENT AND PRODUCTS -- 5.7%
452,640 Cisco Systems, Inc.++.................. 31,034
295,815 Nortel Networks Corporation............ 15,087
--------
46,121
--------
OFFICE EQUIPMENT -- 0.7%
142,435 Xerox Corporation...................... 5,973
--------
OIL FIELD SERVICES & EQUIPMENT -- 1.6%
174,795 Halliburton Company.................... 7,167
91,570 Schlumberger Ltd. ..................... 5,706
--------
12,873
--------
RETAIL -- FOOD -- 1.1%
234,165 Safeway, Inc.++........................ 8,913
--------
RETAIL -- GENERAL -- 1.8%
237,350 Dayton Hudson Corporation.............. 14,256
--------
RETAIL -- SPECIALTY -- 8.3%
117,435 Best Buy Company, Inc.++............... 7,288
413,970 Circuit City Stores - Circuit City
Group................................ 17,465
214,140 CVS Corporation........................ 8,740
127,570 Home Depot Inc. ....................... 8,754
233,605 Lowe's Companies Inc. ................. 11,388
480,505 TJX Companies Inc. .................... 13,484
--------
67,119
--------
SEMICONDUCTORS -- 3.1%
341,425 Intel Corporation...................... 25,372
--------
TELECOMMUNICATIONS -- 9.2%
187,095 General Instruments Corporation++...... 9,004
379,337 Lucent Technologies, Inc. ............. 24,609
141,100 Nokia Corporation, Class A, ADR........ 12,673
229,205 Tellabs, Inc.++........................ 13,050
66,400 Vodafone AirTouch Plc.................. 15,787
--------
75,123
--------
UTILITIES -- TELEPHONE -- 3.4%
388,125 MCI Worldcom, Inc.++................... 27,896
--------
TOTAL COMMON STOCKS
(Cost $486,431)...................... 806,725
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS FUNDS
Nations Capital Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- ----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 5.8%
(Cost $47,000)
47,000 Nations Cash Reserves#.............. $ 47,000
--------
TOTAL INVESTMENTS
(Cost $533,431*)........... 105.1% 853,725
--------
OTHER ASSETS AND LIABILITIES
(NET)...................... (5.1)%
Receivable for investment securities
sold.............................. $ 2,787
Receivable for Fund shares sold..... 202
Dividends receivable................ 465
Interest receivable................. 28
Prepaid expenses.................... 8
Collateral on securities loaned..... (40,849)
Payable for Fund shares redeemed.... (3,156)
Investment advisory fee payable..... (445)
Administration fee payable.......... (158)
Shareholder servicing and
distribution
fees payable......................
(187)
Distributions payable............... (119)
Accrued Trustees'/Directors' fees
and expenses...................... (47)
Accrued expenses and other
liabilities....................... (111)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................. (41,582)
--------
NET ASSETS................... 100.0% $812,143
========
NET ASSETS CONSIST OF:
Net investment loss................. $ (1,904)
Accumulated net realized gain on
investments sold.................. 54,333
Net unrealized appreciation of
investments....................... 320,294
Paid-in capital..................... 439,420
--------
NET ASSETS.......................... $812,143
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
- ----------------------------------------------------------
- ----------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($695,169,520 / 57,678,389 shares
outstanding)...................... $12.05
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price
per share ($49,071,726 / 4,105,495
shares outstanding)............... $11.95
-----
-----
Maximum sales charge................ 5.75%
Maximum offering price per share.... $12.68
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($63,863,747 / 5,636,803
shares outstanding)...............
$11.33
-----
-----
INVESTOR C SHARES:
Net asset value and offering price
per
share+ ($4,038,238 / 353,522
shares outstanding)...............
$11.42
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $332,546 and gross
depreciation of $12,252 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$533,431.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$40,849.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS FUNDS
Nations Disciplined Equity Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.2%
AEROSPACE AND DEFENSE -- 3.8%
148,275 General Dynamics Corporation........... $ 9,258
153,575 Northrop Grumman Corporation........... 9,762
--------
19,020
--------
APPAREL AND TEXTILES -- 1.3%
410,400 Shaw Industries, Inc.++................ 6,515
--------
AUTOMOBILES AND TRUCKS -- 1.8%
176,250 Ford Motor Company..................... 8,846
--------
BANKING -- 1.9%
128,625 Chase Manhattan Corporation............ 9,695
--------
BEVERAGES -- 1.9%
137,675 Anheuser-Busch Companies, Inc. ........ 9,646
--------
COMPUTER RELATED -- 3.1%
394,150 Adaptec, Inc.++........................ 15,643
--------
COMPUTER SERVICES -- 2.0%
145,250 Computer Sciences Corporation++........ 10,213
--------
COMPUTER SOFTWARE -- 5.0%
415,325 Compuware Corporation++................ 10,824
155,850 Microsoft Corporation++................ 14,115
--------
24,939
--------
CONGLOMERATE -- 2.0%
165,600 United Technologies Corporation........ 9,822
--------
CONSTRUCTION -- 3.2%
354,050 Sherwin-Williams Company............... 7,413
183,825 USG Corporation........................ 8,732
--------
16,145
--------
COSMETICS AND TOILETRIES -- 1.8%
175,500 Kimberly-Clark Corporation............. 9,214
--------
ELECTRIC POWER -- 3.4%
225,075 DTE Energy Company..................... 8,131
234,900 PECO Energy Company.................... 8,809
--------
16,940
--------
FINANCIAL SERVICES -- 6.4%
136,175 AXA Financial, Inc. ................... 7,600
242,450 Greenpoint Financial Corporation....... 6,440
124,825 Morgan Stanley Dean Witter & Company... 11,133
205,375 Paine Webber Group, Inc. .............. 7,445
--------
32,618
--------
FOREST AND PAPER PRODUCTS -- 3.5%
252,675 Georgia-Pacific Corporation............ 10,233
144,950 Louisiana Pacific Corporation.......... 2,265
85,400 Weyerhaeuser Company................... 4,921
--------
17,419
--------
HOUSEHOLD PRODUCTS -- 2.9%
285,975 Premark International, Inc. ........... 14,442
--------
INSURANCE -- 4.9%
195,575 Allstate Corporation................... 4,877
119,612 American International Group, Inc. .... 10,399
200,850 MGIC Investment Corporation............ 9,591
--------
24,867
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
MACHINERY AND EQUIPMENT -- 3.9%
195,200 Cummins Engine Company, Inc. .......... $ 9,723
178,150 Ingersoll-Rand Company................. 9,788
--------
19,511
--------
MEDICAL PRODUCTS AND SUPPLIES -- 5.7%
152,825 Allergan, Inc. ........................ 16,811
217,500 Guidant Corporation.................... 11,663
--------
28,474
--------
MEDICAL SERVICES -- 3.8%
481,125 Columbia/HCA Healthcare Corporation.... 10,194
183,075 United Healthcare Corporation.......... 8,913
--------
19,107
--------
OFFICE EQUIPMENT -- 3.8%
234,525 Lexmark International Group, Inc.,
Class A++............................ 18,879
--------
OIL -- DOMESTIC -- 7.2%
169,475 Amerada Hess Corporation............... 10,380
197,825 Ashland Inc. .......................... 6,652
167,000 Columbia Energy Group.................. 9,248
357,075 USX-Marathon Group Inc. ............... 10,443
--------
36,723
--------
PRINTING AND PUBLISHING -- 1.8%
168,700 Knight-Ridder Inc. .................... 9,257
--------
RETAIL -- FOOD -- 1.9%
430,075 Supervalu Inc. ........................ 9,381
--------
RETAIL -- GENERAL -- 1.5%
173,250 Federated Department Stores, Inc.++.... 7,569
--------
RETAIL -- SPECIALTY -- 4.7%
207,300 Best Buy Company, Inc.++............... 12,866
380,150 TJX Companies Inc. .................... 10,668
--------
23,534
--------
SEMICONDUCTORS -- 2.6%
302,600 Altera Corporation++................... 13,125
--------
TELECOMMUNICATIONS -- 2.7%
208,425 Lucent Technologies, Inc. ............. 13,522
--------
UTILITIES -- NATURAL GAS -- 2.3%
285,975 Coastal Corporation.................... 11,707
--------
UTILITIES -- TELEPHONE -- 7.4%
168,775 Ameritech Corporation.................. 11,339
118,050 AT&T Corporation....................... 5,135
226,575 BellSouth Corporation.................. 10,196
274,625 CenturyTel, Inc. ...................... 11,156
--------
37,826
--------
TOTAL COMMON STOCKS
(Cost $408,617)...................... 494,599
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS FUNDS
Nations Disciplined Equity Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 5.2%
(Cost $25,964)
25,964 Nations Cash Reserves#................ $ 25,964
--------
TOTAL INVESTMENTS
(Cost $434,581*)............. 103.4% 520,563
--------
OTHER ASSETS AND
LIABILITIES (NET)............ (3.4)%
Receivable for investment securities
sold................................ $ 479
Receivable for Fund shares sold....... 581
Dividends receivable.................. 375
Interest receivable................... 25
Prepaid expenses...................... 21
Collateral on securities loaned....... (16,006)
Payable for Fund shares redeemed...... (1,888)
Investment advisory fee payable....... (279)
Administration fee payable............ (99)
Shareholder servicing and distribution
fees payable........................ (173)
Distributions payable................. (26)
Accrued Trustees'/Directors' fees and
expenses............................ (18)
Accrued expenses and other
liabilities......................... (144)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (17,152)
--------
NET ASSETS..................... 100.0% $503,411
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 15
Accumulated net realized gain on
investments sold.................... 55,262
Net unrealized appreciation of
investments......................... 85,982
Paid-in capital....................... 362,152
--------
NET ASSETS............................ $503,411
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
- -----------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($391,685,726 / 17,926,181 shares
outstanding)........................ $21.85
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($59,620,696 / 2,748,084
shares outstanding)................. $21.70
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $23.02
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($50,367,814 / 2,412,789
shares
outstanding)........................
$20.88
======
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($1,736,394 / 81,700 shares
outstanding)........................ $21.25
======
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $114,872 and gross
depreciation of $28,890 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$434,581.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$16,006.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
NATIONS FUNDS
Nations Marsico Focused Equities Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- --------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.6%
BEVERAGES -- 2.9%
444,433 Anheuser-Busch Companies, Inc. ....... $ 31,138
----------
COMPUTER RELATED -- 17.8%
637,814 Dell Computer Corporation++........... 26,669
1,362,960 EMC Corporation++..................... 97,366
318,000 Fujitsu............................... 9,916
567,340 Sun Microsystems, Inc.++.............. 52,763
----------
186,714
----------
COMPUTER SOFTWARE -- 4.5%
521,641 Microsoft Corporation++............... 47,241
----------
DRUGS -- 2.6%
776,670 Pfizer Inc. .......................... 27,912
----------
ELECTRICAL COMPONENTS -- 0.7%
379,000 NEC Corporation....................... 7,636
----------
FINANCIAL SERVICES -- 8.3%
1,379,046 Citigroup Inc. ....................... 60,678
431,621 Fannie Mae............................ 27,057
----------
87,735
----------
INTERNET -- 1.7%
175,990 America Online Inc.++................. 18,303
----------
MANUFACTURING -- 2.8%
249,148 General Electric Company.............. 29,540
----------
MEDIA -- 8.3%
225,000 Clear Channel Communications,
Inc.++.............................. 17,972
462,755 MediaOne Group, Inc.++................ 31,612
634,134 Time Warner Inc. ..................... 38,523
----------
88,107
----------
MEDICAL PRODUCTS AND SUPPLIES -- 6.3%
503,031 Cardinal Health, Inc. ................ 27,415
270,943 Genentech, Inc.++..................... 39,643
----------
67,058
----------
NETWORKING EQUIPMENT AND PRODUCTS -- 3.0%
456,851 Cisco Systems, Inc.++................. 31,323
----------
OIL -- DOMESTIC -- 1.4%
170,504 Atlantic Richfield Company............ 15,111
----------
OIL -- INTERNATIONAL -- 2.7%
486,911 Royal Dutch Petroleum Company......... 28,758
----------
OIL FIELD SERVICES & EQUIPMENT -- 3.8%
279,775 Halliburton Company................... 11,471
459,886 Schlumberger Ltd. .................... 28,656
----------
40,127
----------
RECREATION -- 0.6%
142,075 Carnival Corporation.................. 6,180
----------
RENTAL AUTO AND EQUIPMENT -- 1.4%
336,116 Hertz Corporation, Inc. .............. 14,789
----------
RESTAURANTS AND LODGING -- 2.1%
515,589 McDonald's Corporation................ 22,170
----------
RETAIL -- GENERAL -- 3.1%
693,469 Wal-Mart Stores, Inc. ................ 32,983
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- --------------------------------------------------------------
<C> <S> <C>
RETAIL -- SPECIALTY -- 4.9%
215,561 Best Buy Company, Inc.++.............. $ 13,378
566,027 Home Depot Inc. ...................... 38,844
----------
52,222
----------
SEMICONDUCTORS -- 1.3%
169,937 Texas Instruments Inc. ............... 13,977
----------
TELECOMMUNICATIONS -- 11.9%
837,234 Lucent Technologies, Inc. ............ 54,316
341,498 QUALCOMM Inc.++....................... 64,606
25,740 Vodafone AirTouch Plc................. 6,120
----------
125,042
----------
TRANSPORTATION -- 3.5%
186,956 Southwest Airlines Company............ 2,839
521,442 UAL Corporation++..................... 34,057
----------
36,896
----------
TOTAL COMMON STOCKS
(Cost $883,932)..................... 1,010,962
----------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
- ---------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 6.1%
(Cost $64,100)
FEDERAL HOME LOAN BANK (FHLB) -- 6.1%
$ 64,100 Discount note 10/01/99................ 64,091
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 4.5%
(Cost $47,140)
47,140 Nations Cash Reserves#.............. 47,140
----------
TOTAL INVESTMENTS
(Cost $995,172*)........... 106.2% 1,122,193
----------
OTHER ASSETS AND
LIABILITIES (NET).......... (6.2)%
Cash................................ $ 6,545
Receivable for investment securities
sold.............................. 77,666
Dividends receivable................ 289
Prepaid expenses.................... 463
Collateral on securities loaned..... (47,034)
Investment advisory fee payable..... (643)
Administration fee payable.......... (153)
Shareholder servicing and
distribution fees payable......... (2,947)
Payable for investment securities
purchased......................... (99,472)
Accrued Trustees'/Directors' fees
and expenses...................... (11)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................. (65,297)
----------
NET ASSETS................... 100.0% $1,056,896
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 46
NATIONS FUNDS
Nations Marsico Focused Equities Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Net investment loss................. $ (3,404)
Accumulated net realized loss on
investments sold, written options
and foreign currency and net other
assets............................ (16,062)
Net unrealized appreciation of
investments and foreign currency
and net other assets.............. 127,024
Paid-in capital..................... 949,338
----------
NET ASSETS.......................... $1,056,896
==========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($157,548,047 / 9,249,150 shares
outstanding)...................... $17.03
------
------
INVESTOR A SHARES:
Net asset value and redemption price
per share
($333,597,635 / 19,586,415 shares
outstanding)...................... $17.03
------
------
Maximum sales charge................ 5.75%
Maximum offering price per share.... $18.07
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($502,436,664 / 29,774,059
shares outstanding)............... $16.87
------
------
INVESTOR C SHARES:
Net asset value and offering price
per
share+ ($63,313,432 / 3,740,429
shares
outstanding)......................
$16.93
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $151,695 and gross
depreciation of $24,674 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$995,172.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$47,034.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS FUNDS
Nations Emerging Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.1%
ADVERTISING AND MARKETING SERVICES -- 2.8%
125,000 Lamar Advertising Company++............ $ 6,188
--------
APPAREL AND TEXTILES -- 7.9%
155,000 Jones Apparel Group, Inc.++............ 4,456
81,400 Land's End, Inc.++..................... 5,372
120,000 The Men's Wearhouse Inc.++............. 2,580
185,000 Tommy Hilfiger Corporation++........... 5,215
--------
17,623
--------
AUTOMOBILE PARTS MANUFACTURERS -- 1.7%
135,000 Superior Industries International...... 3,780
--------
BANKING -- 4.4%
110,000 City National Corporation.............. 3,692
40,000 Northern Trust Corporation............. 3,340
80,000 SouthTrust Corporation................. 2,870
--------
9,902
--------
BROADCASTING -- 2.9%
80,000 Univision Communications, Inc.++....... 6,510
--------
COMMERCIAL SERVICES -- 2.1%
350,000 Modis Professional Services, Inc.++.... 4,638
--------
COMPUTER RELATED -- 3.2%
75,000 Comverse Technology Inc.++............. 7,073
--------
COMPUTER SOFTWARE -- 10.7%
75,000 BMC Software, Inc.++................... 5,367
72,600 Check Point Software Technologies++.... 6,130
95,000 Citrix Systems, Inc.++................. 5,884
115,000 Compuware Corporation++................ 2,997
5,000 Internap Network Services
Corporation++........................ 223
5,000 NetZero, Inc.++........................ 130
125,000 Sungard Data Systems, Inc.++........... 3,289
--------
24,020
--------
CONGLOMERATE -- 1.0%
36,270 United Technologies Corporation........ 2,151
--------
DRUGS -- 6.1%
60,000 Biogen, Inc.++......................... 4,729
63,000 Centocor, Inc.++....................... 3,689
175,000 Mylan Laboratories, Inc. .............. 3,216
67,600 Watson Pharmaceutical, Inc.++.......... 2,066
--------
13,700
--------
EDUCATION -- 0.9%
98,300 ITT Educational Services, Inc.++....... 1,917
--------
ELECTRIC POWER -- 3.7%
90,000 AES Corporation++...................... 5,310
90,000 CMS Energy Corporation................. 3,054
--------
8,364
--------
ELECTRICAL COMPONENTS -- 2.0%
70,000 Maxim Integrated Products++............ 4,417
--------
ELECTRONICS -- 1.6%
50,000 Solectron Corporation++................ 3,591
--------
ENTERTAINMENT -- 1.4%
100,000 SFX Entertainment, Inc. ............... 3,050
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES -- 4.9%
50,000 Donaldson, Lufkin & Jenrette, Inc.++... $ 756
119,998 Legg Mason Inc. ....................... 4,597
251,500 Waddell & Reed Financial, Inc. ........ 5,581
--------
10,934
--------
INSURANCE -- 2.6%
50,000 Aflac, Inc. ........................... 2,094
145,500 Reinsurance Group of America, Inc. .... 3,737
--------
5,831
--------
MEDIA -- 3.5%
275,000 Metro-Goldwyn-Mayer, Inc.++............ 4,813
6,000 Washington Post Company................ 3,060
--------
7,873
--------
MEDICAL PRODUCTS AND SUPPLIES -- 1.1%
49,600 Stryker Corporation++.................. 2,536
--------
MEDICAL SERVICES -- 2.3%
372,500 Health Management Associates, Inc.,
Class A++............................ 2,747
145,000 Manor Care, Inc.++..................... 2,492
--------
5,239
--------
MISCELLANEOUS -- 0.7%
78,200 Convergys Corporation++................ 1,549
--------
OIL FIELD SERVICES & EQUIPMENT -- 2.5%
115,000 BJ Services Company++.................. 3,658
50,000 Smith International, Inc.++............ 2,025
--------
5,683
--------
PRINTING AND PUBLISHING -- 0.9%
100,000 A.H. Belo Corporation.................. 1,913
--------
RECREATION -- 1.4%
60,000 International Speedway Corporation..... 3,154
--------
RESTAURANTS AND LODGING -- 1.6%
107,855 Promus Hotel Corporation++............. 3,512
--------
RETAIL -- SPECIALTY -- 3.5%
148,000 Bed Bath & Beyond, Inc.++.............. 5,171
121,500 Staples Inc.++......................... 2,650
--------
7,821
--------
SEMICONDUCTORS -- 9.3%
125,000 Altera Corporation++................... 5,422
80,000 Linear Technology Corporation.......... 4,703
55,000 Vitesse Semiconductor Corporation++.... 4,696
90,000 Xilinx, Inc.++......................... 5,897
--------
20,718
--------
TECHNOLOGY -- 0.6%
2,500 Engage Technologies, Inc.++............ 94
40,000 Symbol Technologies, Inc. ............. 1,345
--------
1,439
--------
TELECOMMUNICATIONS -- 6.8%
115,000 ADC Telecommunications, Inc.++......... 4,822
190,000 ECI Telecom Limited.................... 4,691
40,000 JDS Uniphase Corporation++............. 4,553
50,000 Time Warner Telecom, Inc.++............ 1,044
--------
15,110
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48
NATIONS FUNDS
Nations Emerging Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
TRANSPORTATION -- 1.4%
187,500 Comair Holdings, Inc. ................. $ 3,129
--------
UTILITIES -- TELEPHONE -- 2.6%
67,400 CenturyTel, Inc. ...................... 2,738
78,200 Cincinnati Bell, Inc. ................. 1,520
26,000 NorthPoint Communications Group,
Inc.++............................... 481
30,300 Rhythms NetConnections Inc.++.......... 1,045
--------
5,784
--------
TOTAL COMMON STOCKS
(Cost $146,486)...................... 219,149
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 24.3%
(Cost $54,394)
54,394 Nations Cash Reserves#............... 54,394
--------
TOTAL INVESTMENTS
(Cost $200,880*)............ 122.4% 273,543
--------
OTHER ASSETS AND
LIABILITIES (NET)........... (22.4)%
Receivable for investment
securities sold.................... $ 4,914
Receivable for fund shares sold...... 20
Dividends receivable................. 39
Interest receivable.................. 13
Prepaid expenses and other assets.... 104
Collateral on securities loaned...... (52,188)
Payable for fund shares redeemed..... (2,343)
Investment advisory fee payable...... (124)
Administration fee payable........... (44)
Shareholder servicing and
distribution fees payable.......... (49)
Payable for investment securities
purchased.......................... (225)
Accrued Trustees'/Directors' fees
and expenses....................... (27)
Accrued expenses and other
liabilities........................ (111)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................. (50,021)
--------
NET ASSETS.................... 100.0% $223,522
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ----------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Net investment loss.................. $ (778)
Accumulated net realized gain on
investments sold................... 14,920
Net unrealized appreciation of
investments........................ 72,663
Paid-in capital...................... 136,717
--------
NET ASSETS........................... $223,522
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($178,147,335 / 12,429,810 shares
outstanding)....................... $14.33
========
INVESTOR A SHARES:
Net asset value and redemption price
per share ($11,753,634 / 838,458
shares outstanding)................ $14.02
========
Maximum sales charge................. 5.75%
Maximum offering price per share..... $14.88
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($32,138,532 / 2,445,645
shares outstanding)................
$13.14
========
INVESTOR C SHARES:
Net asset value and offering price
per
share+ ($1,482,846 / 112,372 shares
outstanding)....................... $13.20
========
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $82,755 and gross
depreciation of $10,092 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$200,880.
++Non-income producing security.
+The redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by TradeStreet Investment Associates, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 9). The portion that represents cash collateral is
$52,188.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS FUNDS
Nations Small Company Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 100.5%
ADVERTISING AND MARKETING SERVICES -- 0.7%
600,423 HA-LO Industries, Inc.++............... $ 3,753
--------
AEROSPACE AND DEFENSE -- 2.4%
176,100 BE Aerospace, Inc.++................... 2,102
492,700 REMEC, Inc.++.......................... 6,775
579,600 Tristar Aerospace Company++............ 3,550
--------
12,427
--------
APPAREL AND TEXTILES -- 6.1%
196,000 Columbia Sportswear Company++.......... 2,793
226,800 Kenneth Cole Productions, Inc.++....... 8,477
542,600 Quiksilver, Inc.++..................... 9,902
572,300 Tefron Ltd.++.......................... 6,045
119,300 Timberland Company, Class A++.......... 4,660
--------
31,877
--------
BANKING -- 2.8%
216,800 City National Corporation.............. 7,276
344,000 National Commerce Bancorp.............. 7,558
--------
14,834
--------
BROADCASTING -- 0.3%
59,570 Salem Communications Corporation++..... 1,519
--------
BUILDING MATERIALS -- 2.1%
652,400 Group Maintenance America
Corporation++........................ 8,155
276,000 Service Experts Inc.++................. 2,864
--------
11,019
--------
COMMERCIAL SERVICES -- 3.0%
122,200 Lason, Inc.++.......................... 5,442
92,900 Luminant Worldwide Corporation++....... 2,857
296,115 Nova Corporation++..................... 7,402
--------
15,701
--------
COMPUTER RELATED -- 2.5%
21,700 Brocade Communications Systems,
Inc.++............................... 4,557
259,975 Cybex Computer Products
Corporation++........................ 8,677
--------
13,234
--------
COMPUTER SOFTWARE -- 5.5%
263,100 BARRA, Inc.++.......................... 5,525
27,500 E. piphany, Inc.++..................... 1,341
18,000 Gadzoox Networks, Inc.++............... 970
258,965 Hyperion Solutions Corporation++....... 5,697
189,300 Private Business, Inc.++............... 899
420,850 Rogue Wave Software++.................. 2,525
440,200 Segue Software, Inc.++................. 6,025
134,700 Software.Com, Inc.++................... 5,775
--------
28,757
--------
CONSTRUCTION -- 0.7%
173,500 Kaufman & Broad Home Corporation....... 3,578
--------
DRUGS -- 4.0%
91,800 Human Genome Sciences, Inc.++.......... 6,770
438,747 Martek Biosciences Corporation++....... 2,523
303,500 Shire Pharmaceuticals plc++............ 8,744
227,879 Vical, Inc.++.......................... 3,148
--------
21,185
--------
EDUCATION -- 0.9%
233,000 ITT Educational Services, Inc.++....... 4,544
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
ELECTRICAL EQUIPMENT -- 2.4%
418,200 C-COR Electronics++.................... $ 12,703
--------
ELECTRONICS -- 10.8%
575,300 Aeroflex, Inc.++....................... 7,011
336,900 Anaren Microwave, Inc.++............... 9,517
155,400 AstroPower, Inc.++..................... 1,865
138,000 Dionex Corporation++................... 5,900
452,100 Ortel Corporation++.................... 7,008
474,800 Sawtek, Inc.++......................... 16,617
94,500 SDL, Inc.++............................ 7,212
115,300 SIPEX Corporation++.................... 1,650
--------
56,780
--------
FINANCIAL SERVICES -- 2.3%
443,800 Affiliated Managers Group, Inc.++...... 12,094
--------
FURNITURE AND APPLIANCES -- 1.4%
235,762 Ethan Allen Interiors, Inc. ........... 7,500
--------
HEALTHCARE -- 3.2%
571,000 Orthodontic Centers of America++....... 9,993
725,898 US Oncology, Inc.++.................... 6,578
--------
16,571
--------
INSURANCE -- 1.6%
175,851 Delphi Financial Group Inc., Class
A++.................................. 5,309
181,700 Triad Guaranty, Inc.++................. 3,066
--------
8,375
--------
INTERNET -- 1.4%
230,500 USinternetworking, Inc.++.............. 7,203
--------
MACHINERY AND EQUIPMENT -- 1.1%
195,700 Applied Power, Inc., Class A........... 5,944
--------
MEDICAL PRODUCTS AND SUPPLIES -- 0.7%
23,764 Alfacell Corporation++(+).............. 13
263,916 Henry Schein, Inc.++................... 3,761
--------
3,774
--------
MEDICAL SERVICES -- 3.5%
496,600 OrthAlliance, Inc.++................... 3,600
456,800 Physicians Specialty Corporation++..... 4,597
430,600 Province Healthcare Company............ 4,952
200,500 Sunrise Assisted Living, Inc.++........ 5,326
--------
18,475
--------
OIL AND GAS -- 4.2%
300,200 Kinder Morgan Energy Partners, L.P. ... 13,003
573,300 Marine Drilling Companies, Inc.++...... 9,065
--------
22,068
--------
PROFESSIONAL SERVICES -- 7.0%
243,100 AHL Services, Inc.++................... 6,336
377,500 Career Education Corporation++......... 10,947
167,750 Perceptron, Inc.++..................... 598
289,206 Romac International, Inc.++............ 2,395
884,100 SCB Computer Technology, Inc.++........ 4,559
215,550 Select Appointments Holdings plc++..... 7,274
346,800 Trammell Crow Company++................ 4,595
--------
36,704
--------
RESTAURANTS AND LODGING -- 0.7%
222,700 Garden Fresh Restaurant
Corporation++........................ 3,410
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS FUNDS
Nations Small Company Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -----------------------------------------------------------
<C> <S> <C>
RETAIL -- GENERAL -- 0.6%
113,500 ShopKo Stores, Inc.++.................. $ 3,292
--------
RETAIL -- SPECIALTY -- 3.1%
391,400 Blue Rhino Corporation++............... 2,569
225,325 Fossil, Inc.++......................... 6,098
229,300 Iron Mountain, Inc.++.................. 7,767
672 Score Board, Inc.++/++/................ 0
--------
16,434
--------
SEMICONDUCTORS -- 1.5%
256,500 Plexus Corporation++................... 7,855
--------
TECHNOLOGY -- 1.2%
905,000 P-Com, Inc.++.......................... 6,335
--------
TELECOMMUNICATIONS -- 20.7%
96,700 AirGate PCS, Inc.++.................... 2,405
245,900 Antec Corporation++.................... 13,063
209,700 AudioCodes Ltd.++...................... 7,890
407,320 Cellstar Corporation++................. 3,055
158,200 Entercom Communications
Corporation++........................ 5,695
290,200 Gilat Communications Ltd.++............ 4,172
324,200 Gilat Satellite Networks Ltd.++........ 17,385
69,800 Harmonic Lightwaves, Inc.++............ 9,131
95,900 Plantronics Inc.++..................... 4,771
228,400 Proxim, Inc.++......................... 10,506
209,600 RF Micro Devices, Inc.++............... 9,589
198,900 Spectrian Corporation++................ 4,326
392,800 Stanford Telecommunications, Inc.++.... 12,496
329,400 TTI Team Telecom International
Ltd.++............................... 3,356
--------
107,840
--------
TRANSPORTATION -- 2.1%
231,250 Air Express International
Corporation.......................... 5,247
174,500 Midway Airlines Corporation++.......... 1,112
217,400 SkyWest Inc. .......................... 4,769
--------
11,128
--------
TOTAL COMMON STOCKS
(Cost 463,739)....................... 526,913
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 14.0% (Cost
$73,209)
73,209 Nations Cash Reserves#.............. 73,209
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ----------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $536,948*)........... 114.5% $600,122
--------
OTHER ASSETS AND LIABILITIES
(NET)...................... (14.5)%
Receivable for investment securities
sold.............................. $ 11,461
Receivable for Fund shares sold..... 253
Dividends receivable................ 25
Interest receivable................. 34
Prepaid expenses.................... 8
Payable for line of credit.......... (1,882)
Collateral on securities loaned..... (73,209)
Payable for Fund shares redeemed.... (8,621)
Investment advisory fee payable..... (365)
Administration fee payable.......... (100)
Shareholder servicing and
distribution fees payable......... (72)
Due to custodian.................... (1,256)
Payable for investment securities
purchased......................... (1,928)
Accrued Trustees'/Directors' fees
and expenses...................... (10)
Accrued expenses and other
liabilities....................... (158)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................. (75,820)
--------
NET ASSETS................... 100.0% $524,302
========
NET ASSETS CONSIST OF:
Net investment loss................. $ (3,196)
Accumulated net realized loss on
investments sold.................. (17,903)
Net unrealized appreciation of
investments....................... 63,174
Paid-in capital..................... 482,227
--------
NET ASSETS.......................... $524,302
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
NATIONS FUNDS
Nations Small Company Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- ----------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($369,446,243 / 27,230,189 shares
outstanding)...................... $13.57
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price
per share
($146,153,529 / 10,863,780 shares
outstanding)...................... $13.45
-----
-----
Maximum sales charge................ 5.75%
Maximum offering price per share.... $14.27
INVESTOR B SHARES:
Net asset value and offering price
per
share+ ($6,621,254 / 501,417
shares outstanding)...............
$13.21
-----
-----
INVESTOR C SHARES:
Net asset value and offering price
per
share+ ($2,081,300 / 155,689
shares outstanding)...............
$13.37
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $135,740 and gross
depreciation of $72,566 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$536,948.
(+) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
++ Non-income producing security.
+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
/++/ Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by TradeStreet Investment Associates,
Inc. Represents cash collateral received from securities lending activity
(Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 52
NATIONS FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 1999
<TABLE>
<CAPTION>
CAPITAL INCOME
----------------------------------
FOR THE PERIOD FOR THE PERIOD
MAY 15, 1999 MARCH 1, 1999
TO TO
SEPTEMBER 30, MAY 14, BALANCED
1999 1999(a) ASSETS
------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $2, $0, $16,
$15, $0, $408, $35, $131 and $27, respectively)........... $ 3,045 $ 1,910 $ 695
Interest.................................................... 2,164 1,340 1,619
Securities lending.......................................... -- -- 8
-------------- -------------- --------------
Total investment income................................. 5,209 3,250 2,322
-------------- -------------- --------------
EXPENSES:
Investment advisory fee..................................... 832 335 467
Administration fee.......................................... 299 149 140
Transfer agent fees......................................... 86 182 34
Custodian fees.............................................. 30 14 11
Legal and audit fees........................................ 27 4 40
Registration and filing fees................................ 14 23 25
Trustees'/Directors' fees and expenses...................... 8 3 8
Interest expense............................................ --* -- 3
Other....................................................... 59 85 22
-------------- -------------- --------------
Subtotal................................................ 1,355 795 750
Shareholder servicing and distribution fees:
Investor A Shares......................................... 292 182 23
Investor B Shares......................................... 17 8 364
Investor C Shares......................................... 10 9 8
Seafirst Shares........................................... -- -- --
-------------- -------------- --------------
Total expenses.......................................... 1,674 994 1,145
Fees waived by investment advisor, administrator and/or
distributor............................................... (69) (17) --
Fees reduced by credits allowed by the custodian............ (11) -- --*
-------------- -------------- --------------
Net expenses............................................ 1,594 977 1,145
-------------- -------------- --------------
NET INVESTMENT INCOME/(LOSS)................................ 3,615 2,273 1,177
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions..................................... 2,730 12,894 (320)
Written options........................................... -- -- --
Futures contracts......................................... -- -- --
Foreign currency and net other assets..................... -- -- --
-------------- -------------- --------------
Net realized gain/(loss) on investments..................... 2,730 12,894 (320)
-------------- -------------- --------------
Change in unrealized appreciation/(depreciation) of:
Securities (Note 8)....................................... (4,746) 6,835 (2,131)
Futures contracts......................................... -- -- --
Foreign currency and net other assets..................... -- -- --
-------------- -------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... (4,746) 6,835 (2,131)
-------------- -------------- --------------
Net realized and unrealized gain/(loss) of investments...... (2,016) 19,729 (2,451)
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 1,599 $ 22,002 $ (1,274)
============== ============== ==============
</TABLE>
- ---------------
* Amount represents less than $500.
(a) Represents financial information for the Pacific Horizon Capital Income
Fund, which was reorganized into Capital Income Fund on May 21, 1999.
(b) Represents financial information for the Pacific Horizon Asset Allocation
Fund, which was reorganized into Asset Allocation Fund on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
ASSET ALLOCATION
- -----------------------------------------
FOR THE PERIOD FOR THE PERIOD
MAY 15, 1999 MARCH 1, 1999
TO TO
SEPTEMBER 30, MAY 14, EQUITY EQUITY GROWTH &
1999 1999(b) VALUE INCOME INDEX INCOME
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 854 $ 414 $ 16,384 $ 7,555 $ 6,770 $ 876
3,385 1,541 1,003 406 349 319
-- -- -- -- -- --
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
4,239 1,955 17,451 7,967 7,142 1,210
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
774 244 7,502 2,077 2,160 984
354 92 2,262 746 1,045 265
65 49 510 202 215 61
24 42 104 40 61 14
27 4 70 47 50 43
15 30 35 24 19 26
7 3 8 8 8 9
-- -- -- 1 7 --
30 118 107 42 58 --
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
1,296 582 10,598 3,187 3,623 1,402
61 38 172 61 22 72
155 16 804 536 -- 658
7 4 62 29 -- 38
198 110 -- -- -- --
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
1,717 750 11,636 3,813 3,645 2,170
(266) (112) (37) (2) (1,838) --
(9) -- (4) (1) (2) (2)
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
1,442 638 11,595 3,810 1,805 2,168
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
2,797 1,317 5,856 4,157 5,337 (958)
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
3,024 9,905 178,399 18,787 4,271 (3,236)
-- -- -- -- -- 51
-- -- -- 1,265 (386) --
-- -- -- -- -- 34
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
3,024 9,905 178,399 20,052 3,885 (3,151)
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(5,240) 1,712 (205,307) (6,212) (9,403) 11,549
-- -- -- 187 (219) --
-- -- -- -- -- --*
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(5,240) 1,712 (205,307) (6,025) (9,622) 11,549
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(2,216) 11,617 (26,908) 14,027 (5,737) 8,398
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
$ 581 $ 12,934 $ (21,052) $ 18,184 $ (400) $ 7,440
================= ================= ================= ================= ================= =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 54
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
For the six months ended September 30, 1999
<TABLE>
<CAPTION>
BLUE CHIP
--------------------------------
FOR THE PERIOD FOR THE PERIOD
MAY 15, 1999 MARCH 1, 1999
TO TO
SEPTEMBER 30, MAY 14,
1999 1999(a)
--------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $0, $0, $4,
$2, $0, $43, $5 and $0, respectively)..................... $ -- $ --
Dividends allocated from Portfolio+......................... 3,827 2,150
Interest.................................................... -- --
Interest allocated from Portfolio+.......................... 209 170
Securities lending.......................................... -- --
Expenses allocated from Portfolio+.......................... (2,458) (1,123)
-------------- --------------
Total investment income................................. 1,578 1,197
-------------- --------------
EXPENSES:
Investment advisory fee..................................... -- --
Administration fee.......................................... 604 277
Transfer agent fees......................................... 165 266
Custodian fees.............................................. -- 5
Legal and audit fees........................................ 33 14
Registration and filing fees................................ 35 27
Trustees'/Directors' fees and expenses...................... 8 9
Interest expense............................................ -- --
Other....................................................... 78 271
-------------- --------------
Subtotal................................................ 923 869
Shareholder servicing and distribution fees:
Investor A Shares......................................... 347 216
Investor B Shares......................................... 105 34
Investor C Shares......................................... 44 30
Seafirst Shares........................................... 382 226
-------------- --------------
Total expenses.......................................... 1,801 1,375
Fees waived by investment advisor, administrator and/or
distributor............................................... (506) (396)
Fees reduced by credits allowed by the custodian............ -- --
-------------- --------------
Net expenses............................................ 1,295 979
-------------- --------------
NET INVESTMENT INCOME/(LOSS)................................ 283 218
-------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions..................................... -- --
Security transactions allocated from Portfolio+........... 39,961 53,032
Written options........................................... -- --
Foreign currency and net other assets..................... -- --
-------------- --------------
Net realized gain/(loss) on investments..................... 39,961 53,032
-------------- --------------
Change in unrealized appreciation/(depreciation) of:
Securities (Note 8)....................................... -- --
Securities allocated from Portfolio (Note 8)+............. (74,254) 10,012
Foreign currency and net other assets..................... -- --
-------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... (74,254) 10,012
-------------- --------------
Net realized and unrealized gain/(loss) of investments...... (34,293) 63,044
-------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ (34,010) $ 63,262
============== ==============
</TABLE>
- ---------------
* Amount represents less than $500.
+ Allocated from Nations Blue Chip Master Portfolio.
(a) Represents financial information for the Pacific Horizon Blue Chip Fund,
which was reorganized into Blue Chip Fund on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 55
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
SMALL
CAPITAL DISCIPLINED FOCUSED EMERGING
STRATEGIC GROWTH EQUITY EQUITIES GROWTH COMPANY
EQUITY GROWTH
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,233 $ 2,378 $ 2,890 $ 2,559 $ 434 $ 497
-- -- -- -- -- --
231 230 128 1,353 152 176
-- -- -- -- -- --
-- 34 6 17 32 98
-- -- -- -- -- --
-------------- -------------- -------------- -------------- -------------- --------------
1,464 2,642 3,024 3,929 618 771
-------------- -------------- -------------- -------------- -------------- --------------
1,105 2,897 1,831 3,461 790 2,232
357 878 556 937 240 513
30 186 118 133 68 81
7 37 30 40 14 32
28 49 45 51 32 42
30 27 23 27 24 29
5 8 8 9 8 8
-- -- 3 -- 2 9
16 42 37 -- 25 2
-------------- -------------- -------------- -------------- -------------- --------------
1,578 4,124 2,651 4,658 1,203 2,948
--* 65 84 373 18 146
--* 337 267 2,109 170 30
--* 21 9 198 7 16
-- -- -- -- -- --
-------------- -------------- -------------- -------------- -------------- --------------
1,578 4,547 3,011 7,338 1,398 3,140
-- -- -- -- -- (236)
(1) (1) (2) (5) (2) (5)
-------------- -------------- -------------- -------------- -------------- --------------
1,577 4,546 3,009 7,333 1,396 2,899
-------------- -------------- -------------- -------------- -------------- --------------
(113) (1,904) 15 (3,404) (778) (2,128)
-------------- -------------- -------------- -------------- -------------- --------------
809 53,619 46,889 (9,544) 14,780 13,557
-- -- -- -- -- --
-- -- -- 190 -- --
-- -- -- 121 -- --
-------------- -------------- -------------- -------------- -------------- --------------
809 53,619 46,889 (9,233) 14,780 13,557
-------------- -------------- -------------- -------------- -------------- --------------
(7,856) (44,311) (57,610) 32,847 5,819 76,751
-- -- -- -- -- --
-- -- -- 3 -- --
-------------- -------------- -------------- -------------- -------------- --------------
(7,856) (44,311) (57,610) 32,850 5,819 76,751
-------------- -------------- -------------- -------------- -------------- --------------
(7,047) 9,308 (10,721) 23,617 20,599 90,308
-------------- -------------- -------------- -------------- -------------- --------------
$ (7,160) $ 7,404 $ (10,706) $ 20,213 $ 19,821 $ 88,180
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
BALANCED ASSETS
CAPITAL INCOME
------------------------------
----------------------------------------------- SIX MONTHS
PERIOD ENDED ENDED
9/30/99 PERIOD ENDED YEAR ENDED 9/30/99 YEAR ENDED
(UNAUDITED) 5/14/99(a) 2/28/99(a) (UNAUDITED) 3/31/99
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)......... $ 3,615 $ 2,273 $ 11,459 $ 1,177 $ 3,071
Net realized gain/(loss) on
investments........................ 2,730 12,894 12,406 (320) (2,434)
Net change in unrealized
appreciation/ (depreciation) of
investments........................ (4,746) 6,835 (8,323) (2,131) (4,896)
-------------- -------------- -------------- -------------- --------------
Net increase/(decrease) in net assets
resulting from operations.......... 1,599 22,002 15,542 (1,274) (4,259)
Distributions to shareholders from
net investment income:
Primary A Shares................... (87) -- -- (515) (1,396)
Primary B Shares................... -- -- -- -- (25)
Investor A Shares.................. (3,971) (2,168) (11,928) (186) (490)
Investor B Shares.................. (52) (17) (77) (494) (902)
Investor C Shares.................. (27) (21) (32) (11) (19)
Seafirst Shares.................... -- -- -- -- --
Distributions to shareholders from
net realized gain on investments:
Primary A Shares................... -- -- -- -- (1,225)
Primary B Shares................... -- -- -- -- (120)
Investor A Shares.................. -- -- (4,002) -- (1,032)
Investor B Shares.................. -- -- (34) -- (5,096)
Investor C Shares.................. -- -- (18) -- (123)
Seafirst Shares.................... -- -- -- -- --
Net increase/(decrease) in net assets
from Fund share transactions....... (37,308) (22,853) (29,688) (17,553) 40,450
-------------- -------------- -------------- -------------- --------------
Net increase/(decrease) in net
assets............................. (39,846) (3,057) (30,237) (20,033) 25,763
NET ASSETS:
Beginning of period.................. 360,377 363,434 393,671 144,701 118,938
-------------- -------------- -------------- -------------- --------------
End of period........................ $ 320,531 $ 360,377 $ 363,434 $ 124,668 $ 144,701
============== ============== ============== ============== ==============
Undistributed net investment
income/(distributions in excess of
net investment income) at end of
period............................. $ 1,005 $ 1,527 $ 1,460 $ 231 $ 258
============== ============== ============== ============== ==============
</TABLE>
- ---------------
(a) Represents financial information for the Pacific Horizon Capital Income
Fund, which was reorganized into Capital Income Fund on May 21, 1999.
(b) Represents financial information for the Pacific Horizon Asset Allocation
Fund, which was reorganized into Asset Allocation Fund on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 57
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
VALUE EQUITY INCOME
ASSET ALLOCATION FUND ------------------------------- -------------------------------
------------------------------------------------ SIX MONTHS SIX MONTHS
PERIOD ENDED ENDED ENDED
9/30/99 PERIOD ENDED YEAR ENDED 9/30/99 YEAR ENDED 9/30/99 YEAR ENDED
(UNAUDITED) 5/14/99(b) 2/28/99(b) (UNAUDITED) 3/31/99 (UNAUDITED) 3/31/99
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,797 $ 1,317 $ 7,196 $ 5,856 $ 15,999 $ 4,157 $ 16,277
3,024 9,905 23,765 178,399 197,138 20,052 21,410
(5,240) 1,712 6,281 (205,307) (130,060) (6,025) (151,838)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
581 12,934 37,242 (21,052) 83,077 18,184 (114,151)
(66) -- -- (5,275) (15,869) (3,806) (14,121)
-- -- -- -- -- -- --
(491) (352) (1,375) (226) (741) (266) (986)
(336) (27) (20) -- -- (229) (1,024)
(6) (8) (25) -- (7) (12) (68)
(2,138) (1,429) (5,496) -- -- -- --
-- -- -- (69,060) (267,249) -- (71,792)
-- -- -- -- -- -- --
-- -- (4,627) (4,849) (17,975) -- (5,474)
-- -- (164) (5,636) (18,826) -- (11,747)
-- -- (106) (441) (1,658) -- (775)
-- -- (17,214) -- -- -- --
107,171 (22) 31,247 (179,780) (79,457) (119,912) (178,872)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
104,715 11,096 39,462 (286,319) (318,705) (106,041) (399,010)
298,356 287,260 247,798 2,242,526 2,561,231 739,902 1,138,912
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 403,071 $ 298,356 $ 287,260 $ 1,956,207 $ 2,242,526 $ 633,861 $ 739,902
============== ============== ============== ============== ============== ============== ==============
$ 259 $ 499 $ 1,029 $ 355 $ -- $ 234 $ 388
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 58
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
EQUITY INDEX GROWTH & INCOME
------------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/99 YEAR ENDED 9/30/99 YEAR ENDED
(UNAUDITED) 3/31/99 (UNAUDITED) 3/31/99
----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)......................... $ 5,337 $ 8,920 $ (958) $ (462)
Net realized gain/(loss) on investments.............. 3,885 6,845 (3,151) 128
Net realized gain/(loss) on investments allocated
from Portfolio+.................................... -- -- -- --
Net change in unrealized appreciation/(depreciation)
of investments..................................... (9,622) 127,208 11,549 24,906
Net change in unrealized appreciation/(depreciation)
of investments allocated from Portfolio+........... -- -- -- --
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... (400) 142,973 7,440 24,572
Distributions to shareholders from net investment
income:
Primary A Shares................................... (5,054) (8,807) -- --
Primary B Shares................................... -- (2) -- --
Investor A Shares.................................. (75) (84) -- --
Investor B Shares.................................. -- -- -- --
Investor C Shares.................................. -- -- -- --
Seafirst Shares.................................... -- -- -- --
Distributions to shareholders from net realized gain
on investments:
Primary A Shares................................... (1,733) (29,335) (133) (3)
Primary B Shares................................... -- (5) -- --
Investor A Shares.................................. (26) (212) (111) (1)
Investor B Shares.................................. -- -- (248) (10)
Investor C Shares.................................. -- -- (11) --
Seafirst Shares.................................... -- -- -- --
Net increase/(decrease) in net assets from Fund share
transactions....................................... 67,249 181,371 89,192 161,470
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ 59,961 285,899 96,129 186,028
NET ASSETS:
Beginning of period.................................. 947,140 661,241 198,111 12,083
-------------- -------------- -------------- --------------
End of period........................................ $ 1,007,101 $ 947,140 $ 294,240 $ 198,111
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 253 $ 44 $ (958) $ --
============== ============== ============== ==============
</TABLE>
- ---------------
* Amount Represents less than $500.
+ Allocated from Nations Blue Chip Master Portfolio.
(a) Represents financial information for the Pacific Horizon Blue Chip Fund,
which was reorganized into Blue Chip Fund on May 21, 1999.
(b) Strategic Equity commenced operations on October 2, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 59
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
STRATEGIC EQUITY CAPITAL GROWTH
BLUE CHIP FUND
------------------------------- -------------------------------
------------------------------------------------ SIX MONTHS SIX MONTHS
PERIOD ENDED ENDED ENDED
9/30/99 PERIOD ENDED YEAR ENDED 9/30/99 PERIOD ENDED 9/30/99 YEAR ENDED
(UNAUDITED) 5/14/99(a) 2/28/99(a) (UNAUDITED) 3/31/99(b) (UNAUDITED) 3/31/99
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 283 $ 218 $ 3,117 $ (113) $ (30) $ (1,904) $ (1,058)
-- -- 58,971 809 4,357 53,619 70,219
39,961 53,032 -- -- -- -- --
-- -- 67,561 (7,856) 72,170 (44,311) 39,437
(74,254) 10,012 -- -- -- -- --
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(34,010) 63,262 129,649 (7,160) 76,497 7,404 108,598
(12) -- -- -- -- -- --
-- -- -- -- -- -- --
-- (3) (1,252) -- -- -- --
-- -- (3) -- -- -- --
-- -- --* -- -- -- --
(179) (343) (2,302) -- -- -- --
-- -- -- (2,998) (87) (6,001) (181,366)
-- -- -- -- -- -- (61)
-- -- (20,307) -- -- (404) (9,887)
-- -- (336) -- -- (577) (13,915)
-- -- (574) -- -- (34) (1,210)
-- -- (23,680) -- -- -- --
(12,070) (4,053) 98,005 112,375 190,413 (49,052) (22,825)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(46,271) 58,863 179,200 102,217 266,823 (48,664) (120,666)
903,478 844,615 665,415 266,823 -- 860,807 981,473
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 857,207 $ 903,478 $ 844,615 $ 369,040 $ 266,823 $ 812,143 $ 860,807
============== ============== ============== ============== ============== ============== ==============
$ 244 $ 152 $ 279 $ (113) $ -- $ (1,904) $ --
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 60
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
DISCIPLINED EQUITY
-------------------------------------
SIX MONTHS
ENDED
9/30/99 YEAR ENDED
(UNAUDITED) 3/31/99
-------------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)................................ $ 15 $ (50)
Net realized gain/(loss) on investments..................... 46,889 46,327
Net change in unrealized appreciation/(depreciation) of
investments............................................... (57,610) 22,472
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ (10,706) 68,749
Distributions to shareholders in excess of net investment
income:
Primary A Shares.......................................... -- (227)
Primary B Shares.......................................... -- --
Investor A Shares......................................... -- --
Investor B Shares......................................... -- --
Investor C Shares......................................... -- --
Seafirst Shares........................................... -- --
Distributions to shareholders from net realized gain on
investments:
Primary A Shares.......................................... (15,433) (17,824)
Primary B Shares.......................................... -- --
Investor A Shares......................................... (2,504) (2,919)
Investor B Shares......................................... (2,013) (3,828)
Investor C Shares......................................... (69) (118)
Seafirst Shares........................................... -- --
Net increase/(decrease) in net assets from Fund share
transactions.............................................. 2,178 294,617
-------------- --------------
Net increase/(decrease) in net assets....................... (28,547) 338,450
NET ASSETS:
Beginning of period......................................... 531,958 193,508
-------------- --------------
End of period............................................... $ 503,411 $ 531,958
============== ==============
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................ $ 15 $ --
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 61
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
FOCUSED EQUITIES EMERGING GROWTH SMALL COMPANY GROWTH
------------------------------- ------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/99 YEAR ENDED 9/30/99 YEAR ENDED 9/30/99 YEAR ENDED
(UNAUDITED) 3/31/99 (UNAUDITED) 3/31/99 (UNAUDITED) 3/31/99
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ (3,404) $ (1,308) $ (778) $ (1,246) $ (2,128) $ (1,679)
(9,233) 3,566 14,780 3,479 13,557 (18,201)
32,850 90,876 5,819 (35,342) 76,751 (83,458)
-------------- -------------- -------------- -------------- -------------- --------------
20,213 93,134 19,821 (33,109) 88,180 (103,338)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(1,393) (13) (2,294) (43,365) -- (22,341)
-- -- -- (3) -- --
(3,124) (12) (191) (3,190) -- (901)
(4,252) (36) (459) (6,532) -- (327)
(295) (1) (20) (320) -- (217)
-- -- -- -- -- --
382,105 534,792 (23,866) (70,866) 84,920 229,621
-------------- -------------- -------------- -------------- -------------- --------------
393,254 627,864 (7,009) (157,385) 173,100 102,497
663,642 35,778 230,531 387,916 351,202 248,705
-------------- -------------- -------------- -------------- -------------- --------------
$ 1,056,896 $ 663,642 $ 223,522 $ 230,531 $ 524,302 $ 351,202
============== ============== ============== ============== ============== ==============
$ (3,404) $ -- $ (778) $ -- $ (3,196) $ (1,069)
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 62
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
CAPITAL INCOME
PERIOD ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MAY 14, 1999(a) FEBRUARY 28, 1999(a)
-------------------- ------------------ ---------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................... 660 $ 8,030 -- $ -- -- $ --
Issued as reinvestment of dividends....... 2 36 -- -- -- --
Redeemed.................................. (19,510) (357,599) -- -- -- --
------- --------- ------ -------- ------ ---------
Net increase/(decrease)................... (18,848) $(349,533) -- $ -- -- $ --
======= ========= ====== ======== ====== =========
INVESTOR A SHARES:
Sold...................................... 19,514 $ 353,331 249 $ 4,450 3,936 $ 68,015
Issued as reinvestment of dividends....... 198 3,575 110 1,937 867 14,499
Redeemed.................................. (2,833) (51,982) (1,666) (29,719) (6,909) (116,880)
------- --------- ------ -------- ------ ---------
Net increase/(decrease)................... 16,879 $ 304,924 (1,307) $(23,332) (2,106) $ (34,366)
======= ========= ====== ======== ====== =========
INVESTOR B SHARES:
Sold...................................... 73 $ 5,756 52 $ 918 220 $ 3,707
Issued as reinvestment of dividends....... 4 50 1 17 3 50
Redeemed.................................. (22) (406) (6) (113) (29) (488)
------- --------- ------ -------- ------ ---------
Net increase/(decrease)................... 55 $ 5,400 47 $ 822 194 $ 3,269
======= ========= ====== ======== ====== =========
INVESTOR C SHARES:
Sold...................................... 31 $ 4,469 23 $ 417 162 $ 2,751
Issued as reinvestment of dividends....... 2 26 1 21 7 111
Redeemed.................................. (139) (2,594) (43) (781) (85) (1,453)
------- --------- ------ -------- ------ ---------
Net increase/(decrease)................... (106) $ 1,901 (19) $ (343) 84 $ 1,409
======= ========= ====== ======== ====== =========
Total net increase/(decrease)............. (2,020) $ (37,308) (1,279) $(22,853) (1,828) $ (29,688)
======= ========= ====== ======== ====== =========
</TABLE>
- ---------------
(a) Represents financial information for the Pacific Horizon Capital Income
Fund, which was reorganized into Capital Income Fund on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 63
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
BALANCED ASSETS
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 132 $ 1,380 737 $ 7,600
Issued in exchange for Institutional Shares of Emerald
Balanced Fund (Note 10)................................. -- -- 6,310 68,185
Issued as reinvestment of dividends....................... 42 441 220 2,295
Redeemed.................................................. (795) (8,537) (4,378) (45,725)
------ -------- ------ --------
Net increase/(decrease)................................... (621) $ (6,716) 2,889 $ 32,355
====== ======== ====== ========
PRIMARY B SHARES:+
Sold...................................................... -- $ -- -- $ --
Issued as reinvestment of dividends....................... -- -- 11 120
Redeemed.................................................. -- -- (174) (1,835)
------ -------- ------ --------
Net increase/(decrease)................................... -- $ -- (163) $ (1,715)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 77 $ 825 681 $ 7,093
Issued in exchange for Retail Shares of Emerald Balanced
Fund (Note 10).......................................... -- -- 806 8,702
Issued as reinvestment of dividends....................... 17 175 141 1,485
Redeemed.................................................. (515) (5,499) (1,001) (10,278)
------ -------- ------ --------
Net increase/(decrease)................................... (421) $ (4,499) 627 $ 7,002
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 298 $ 3,182 1,397 $ 14,540
Issued as reinvestment of dividends....................... 45 473 551 5,853
Redeemed.................................................. (929) (9,897) (1,713) (17,442)
------ -------- ------ --------
Net increase/(decrease)................................... (586) $ (6,242) 235 $ 2,951
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 10 $ 105 52 $ 546
Issued as reinvestment of dividends....................... 1 11 13 141
Redeemed.................................................. (20) (212) (80) (830)
------ -------- ------ --------
Net increase/(decrease)................................... (9) $ (96) (15) $ (143)
====== ======== ====== ========
Total net increase/(decrease)............................. (1,637) $(17,553) 3,573 $ 40,450
====== ======== ====== ========
</TABLE>
- ---------------
+ There were no longer any public shareholders of the Primary B Share class as
of January 5, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 64
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
ASSET ALLOCATION
PERIOD ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MAY 14, 1999(a) FEBRUARY 28, 1999(a)
------------------ ----------------- --------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold.......................................... 400 $ 9,315 -- $ -- -- $ --
Issued as reinvestment of dividends........... 1 25 -- -- -- --
Redeemed...................................... (19) (441) -- -- -- --
----- -------- ---- ------- ------ --------
Net increase/(decrease)....................... 382 $ 8,899 -- $ -- -- $ --
===== ======== ==== ======= ====== ========
INVESTOR A SHARES:
Sold.......................................... 149 $ 1,120 129 $ 3,014 1,494 $ 32,958
Issued in exchange for:
A Shares of Time Horizon Portfolio I (Note
10)....................................... 336 7,832 -- -- -- --
A Shares of Time Horizon Portfolio II (Note
10)....................................... 489 11,379 -- -- -- --
A Shares of Time Horizon Portfolio III (Note
10)....................................... 529 12,317 -- -- -- --
Issued as reinvestment of dividends........... 7 169 15 338 265 5,769
Redeemed...................................... (871) (20,389) (261) (6,117) (856) (18,891)
----- -------- ---- ------- ------ --------
Net increase/(decrease)....................... 639 $ 12,428 (117) $(2,765) 903 $ 19,836
===== ======== ==== ======= ====== ========
INVESTOR B SHARES:
Sold.......................................... 489 $ 3,054 199 $ 4,627 246 $ 5,456
Issued in exchange for:
B Shares of Time Horizon Portfolio I (Note
10)....................................... 1,063 24,663 -- -- -- --
B Shares of Time Horizon Portfolio II (Note
10)....................................... 1,381 32,027 -- -- -- --
B Shares of Time Horizon Portfolio III (Note
10)....................................... 1,641 38,074 -- -- -- --
Issued as reinvestment of dividends........... 1 21 1 27 8 183
Redeemed...................................... (206) (4,751) (6) (130) (6) (139)
----- -------- ---- ------- ------ --------
Net increase/(decrease)....................... 4,369 $ 93,088 194 $ 4,524 248 $ 5,500
===== ======== ==== ======= ====== ========
INVESTOR C SHARES:
Sold.......................................... 55 $ 1,223 26 $ 611 48 $ 1,051
Issued in exchange for:
K Shares of Time Horizon Portfolio I (Note
10)....................................... --* 11 -- -- -- --
K Shares of Time Horizon Portfolio II (Note
10)....................................... --* 8 -- -- -- --
K Shares of Time Horizon Portfolio III (Note
10)....................................... --* 1 -- -- -- --
Issued as reinvestment of dividends........... --* 3 -- 8 6 131
Redeemed...................................... (61) (1,434) (7) (176) (52) (1,161)
----- -------- ---- ------- ------ --------
Net increase/(decrease)....................... (6) $ (188) 19 $ 443 2 $ 21
===== ======== ==== ======= ====== ========
SEAFIRST SHARES:
Sold.......................................... 113 $ 1,992 211 $ 3,725 860 $ 14,710
Issued as reinvestment of dividends........... 58 1,028 82 1,428 1,370 22,704
Redeemed...................................... (574) (10,076) (418) (7,377) (1,854) (31,524)
----- -------- ---- ------- ------ --------
Net increase/(decrease)....................... (403) $ (7,056) (125) $(2,224) 376 $ 5,890
===== ======== ==== ======= ====== ========
Total net increase/(decrease)................. 4,981 $107,171 (29) $ (22) 1,529 $ 31,247
===== ======== ==== ======= ====== ========
</TABLE>
- ---------------
* Amount represents less than 500 shares.
(a) Represents financial information for the Pacific Horizon Asset Allocation
Fund, which was reorganized into Asset Allocation Fund on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 65
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,025 $ 56,271 29,523 $ 533,366
Issued in exchange for:
Assets of NationsBank Common Trust Long-Term Equity Fund
(Note 10)............................................. -- -- 6,395 120,426
Institutional Shares of Emerald Equity Value Fund (Note
10)................................................... -- -- 1,059 19,791
Issued as reinvestment of dividends....................... 1,618 30,595 5,598 103,270
Redeemed.................................................. (14,193) (263,831) (48,601) (877,373)
------- --------- ------- ---------
Net increase/(decrease)................................... (9,550) $(176,965) (6,026) $(100,520)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 1,380 $ 25,622 2,114 $ 37,964
Issued in exchange for Retail Shares of Emerald Equity
Value Fund (Note 10).................................... -- -- 354 6,603
Issued as reinvestment of dividends....................... 239 4,511 946 17,374
Redeemed.................................................. (1,922) (35,822) (3,378) (59,394)
------- --------- ------- ---------
Net increase/(decrease)................................... (303) $ (5,689) 36 $ 2,547
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 666 $ 12,261 1,531 $ 28,200
Issued as reinvestment of dividends....................... 291 5,454 1,007 18,348
Redeemed.................................................. (814) (14,978) (1,531) (27,558)
------- --------- ------- ---------
Net increase/(decrease)................................... 143 $ 2,737 1,007 $ 18,990
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 53 $ 972 206 $ 3,701
Issued as reinvestment of dividends....................... 23 435 91 1,663
Redeemed.................................................. (69) (1,270) (331) (5,838)
------- --------- ------- ---------
Net increase/(decrease)................................... 7 $ 137 (34) $ (474)
======= ========= ======= =========
Total net increase/(decrease)............................. (9,703) $(179,780) (5,017) $ (79,457)
======= ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 66
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
EQUITY INCOME
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,536 $ 30,710 10,668 $ 124,337
Issued in exchange for Assets of NationsBank Common Trust
Equity Income Fund (Note 10)............................ -- -- 4,737 62,189
Issued as reinvestment of dividends....................... 5 59 636 8,101
Redeemed.................................................. (10,228) (124,526) (31,078) (358,488)
------- --------- ------- ---------
Net increase/(decrease)................................... (7,687) $ (93,757) (15,037) $(163,861)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 337 $ 4,136 1,295 $ 15,303
Issued as reinvestment of dividends....................... 20 239 475 5,953
Redeemed.................................................. (1,228) (14,994) (2,132) (24,670)
------- --------- ------- ---------
Net increase/(decrease)................................... (871) $ (10,619) (362) $ (3,414)
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 104 $ 1,283 989 $ 12,090
Issued as reinvestment of dividends....................... 18 215 982 12,328
Redeemed.................................................. (1,347) (16,326) (2,892) (33,271)
------- --------- ------- ---------
Net increase/(decrease)................................... (1,225) $ (14,828) (921) $ (8,853)
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 10 $ 125 35 $ 434
Issued as reinvestment of dividends....................... 1 12 66 839
Redeemed.................................................. (69) (845) (333) (4,017)
------- --------- ------- ---------
Net increase/(decrease)................................... (58) $ (708) (232) $ (2,744)
======= ========= ======= =========
Total net increase/(decrease)............................. (9,841) $(119,912) (16,552) $(178,872)
======= ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 67
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
EQUITY INDEX
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------ --------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 4,537 $118,137 29,340 $ 653,241
Issued as reinvestment of dividends....................... 182 4,631 1,400 30,587
Redeemed.................................................. (2,412) (63,017) (22,794) (509,984)
------ -------- ------- ---------
Net increase/(decrease)................................... 2,307 $ 59,751 7,946 $ 173,844
====== ======== ======= =========
PRIMARY B SHARES:+
Sold...................................................... -- $ -- 13 $ 295
Issued as reinvestment of dividends....................... -- -- -- 7
Redeemed.................................................. -- -- (19) (450)
------ -------- ------- ---------
Net increase/(decrease)................................... -- $ -- (6) $ (148)
====== ======== ======= =========
INVESTOR A SHARES:
Sold...................................................... 378 $ 9,864 459 $ 10,251
Issued as reinvestment of dividends....................... 4 93 13 279
Redeemed.................................................. (94) (2,459) (123) (2,855)
------ -------- ------- ---------
Net increase/(decrease)................................... 288 $ 7,498 349 $ 7,675
====== ======== ======= =========
Total net increase/(decrease)............................. 2,595 $ 67,249 8,289 $ 181,371
====== ======== ======= =========
</TABLE>
- ---------------
+ There were no longer any public shareholders of the Primary B Share class as
of February 15, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 68
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GROWTH & INCOME
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,672 $ 26,009 4,035 $ 54,522
Issued as reinvestment of dividends....................... 6 94 --* 3
Redeemed.................................................. (1,288) (19,280) (741) (9,475)
------ -------- ------ --------
Net increase/(decrease)................................... 390 $ 6,823 3,294 $ 45,050
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 2,178 $ 33,991 3,300 $ 41,279
Issued as reinvestment of dividends....................... 3 51 --* 1
Redeemed.................................................. (646) (10,064) (493) (6,453)
------ -------- ------ --------
Net increase/(decrease)................................... 1,535 $ 23,978 2,807 $ 34,827
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 3,775 $ 57,977 6,484 $ 84,968
Issued as reinvestment of dividends....................... 15 229 --* 9
Redeemed.................................................. (512) (7,898) (457) (5,812)
------ -------- ------ --------
Net increase/(decrease)................................... 3,278 $ 50,308 6,027 $ 79,165
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 547 $ 8,428 197 $ 2,723
Issued as reinvestment of dividends....................... --* 7 --* --*
Redeemed.................................................. (23) (352) (23) (295)
------ -------- ------ --------
Net increase/(decrease)................................... 524 $ 8,083 174 $ 2,428
====== ======== ====== ========
Total net increase/(decrease)............................. 5,727 $ 89,192 12,302 $161,470
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than 500 shares and $500.
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 69
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
BLUE CHIP FUND
PERIOD ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MAY 14, 1999(a) FEBRUARY 28, 1999(a)
------------------- ------------------- --------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold................................... 947 $ 34,094 -- $ -- -- $ --
Issued as reinvestment of dividends.... -- -- -- -- -- --
Redeemed............................... (70) (2,525) -- -- -- --
------ -------- ---- -------- ------ ---------
Net increase/(decrease)................ 877 $ 31,569 -- $ -- -- $ --
====== ======== ==== ======== ====== =========
INVESTOR A SHARES:
Sold................................... 584 $ 20,987 520 $ 18,418 5,779 $ 181,140
Issued as reinvestment of dividends.... -- -- -- 6 625 19,069
Redeemed............................... (1,980) (71,308) (721) (25,590) (4,060) (125,766)
------ -------- ---- -------- ------ ---------
Net increase/(decrease)................ (1,396) $(50,321) (201) $ (7,166) 2,344 $ 74,443
====== ======== ==== ======== ====== =========
INVESTOR B SHARES:
Sold................................... 535 $ 19,161 210 $ 7,461 390 $ 12,295
Issued as reinvestment of dividends.... -- -- -- -- 11 336
Redeemed............................... (46) (1,633) (9) (311) (15) (480)
------ -------- ---- -------- ------ ---------
Net increase/(decrease)................ 489 $ 17,528 201 $ 7,150 386 $ 12,151
====== ======== ==== ======== ====== =========
INVESTOR C SHARES:
Sold................................... 159 $ 5,636 58 $ 2,048 277 $ 8,600
Issued as reinvestment of dividends.... -- -- -- -- 19 577
Redeemed............................... (225) (8,037) (37) (1,319) (126) (4,046)
------ -------- ---- -------- ------ ---------
Net increase/(decrease)................ (66) $ (2,401) 21 $ 729 170 $ 5,131
====== ======== ==== ======== ====== =========
SEAFIRST SHARES:
Sold................................... 237 $ 7,501 350 $ 10,944 1,723 $ 48,126
Issued as reinvestment of dividends.... -- -- 11 343 964 25,981
Redeemed............................... (499) (15,946) (513) (16,053) (2,459) (67,827)
------ -------- ---- -------- ------ ---------
Net increase/(decrease)................ (262) $ (8,445) (152) $ (4,766) 228 $ 6,280
====== ======== ==== ======== ====== =========
Total net increase/(decrease).......... (358) $(12,070) (131) $ (4,053) 3,128 $ 98,005
====== ======== ==== ======== ====== =========
</TABLE>
- ---------------
(a) Represents financial information for the Pacific Horizon Blue Chip Fund,
which was reorganized into Blue Chip Fund on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 70
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
STRATEGIC EQUITY
SIX MONTHS ENDED
SEPTEMBER 30, 1999(b) PERIOD ENDED
(UNAUDITED) MARCH 31, 1999(a)
--------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 10,054 $141,426 20,226 $202,441
Issued as reinvestment of dividends....................... 22 312 -- --
Redeemed.................................................. (2,151) (30,128) (970) (12,028)
------- -------- ------ --------
Net increase/(decrease)................................... 7,925 $111,610 19,256 $190,413
======= ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 23 $ 318 -- $ --
Issued as reinvestment of dividends....................... -- -- -- --
Redeemed.................................................. --* --* -- --
------- -------- ------ --------
Net increase/(decrease)................................... 23 $ 318 -- $ --
======= ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 7 $ 95 -- $ --
Issued as reinvestment of dividends....................... -- -- -- --
Redeemed.................................................. -- -- -- --
------- -------- ------ --------
Net increase/(decrease)................................... 7 $ 95 -- $ --
======= ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 25 $ 352 -- $ --
Issued as reinvestment of dividends....................... -- -- -- --
Redeemed.................................................. -- -- -- --
------- -------- ------ --------
Net increase/(decrease)................................... 25 $ 352 -- $ --
======= ======== ====== ========
Total net increase/(decrease)............................. 7,980 $112,375 19,256 $190,413
======= ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than 500 shares and $500.
(a) Strategic Equity Primary A Shares commenced operations on October 2, 1998.
(b) Strategic Equity Investor A Shares, Investor B Shares and Investor C Shares
commenced operations on August 2, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 71
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
CAPITAL GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------ --------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,519 $ 43,113 14,323 $ 183,544
Issued as reinvestment of dividends....................... 199 2,375 5,911 65,638
Redeemed.................................................. (7,251) (88,631) (24,584) (296,237)
------ -------- ------- ---------
Net increase/(decrease)................................... (3,533) $(43,143) (4,350) $ (47,055)
====== ======== ======= =========
PRIMARY B SHARES:+
Sold...................................................... -- $ -- -- $ --
Issued as reinvestment of dividends....................... -- -- 6 61
Redeemed.................................................. -- -- (26) (283)
------ -------- ------- ---------
Net increase/(decrease)................................... -- $ -- (20) $ (222)
====== ======== ======= =========
INVESTOR A SHARES:
Sold...................................................... 4,324 $ 52,945 2,165 $ 24,731
Issued as reinvestment of dividends....................... 31 360 811 8,950
Redeemed.................................................. (4,678) (57,191) (1,821) (20,456)
------ -------- ------- ---------
Net increase/(decrease)................................... (323) $ (3,886) 1,155 $ 13,225
====== ======== ======= =========
INVESTOR B SHARES:
Sold...................................................... 288 $ 3,321 889 $ 10,383
Issued as reinvestment of dividends....................... 50 564 1,294 13,706
Redeemed.................................................. (525) (6,109) (994) (11,322)
------ -------- ------- ---------
Net increase/(decrease)................................... (187) $ (2,224) 1,189 $ 12,767
====== ======== ======= =========
INVESTOR C SHARES:
Sold...................................................... 40 $ 462 113 $ 1,473
Issued as reinvestment of dividends....................... 3 33 112 1,200
Redeemed.................................................. (25) (294) (367) (4,213)
------ -------- ------- ---------
Net increase/(decrease)................................... 18 $ 201 (142) $ (1,540)
====== ======== ======= =========
Total net increase/(decrease)............................. (4,025) $(49,052) (2,168) $ (22,825)
====== ======== ======= =========
</TABLE>
- ---------------
+ There were no longer any public shareholders of the Primary B Share class as
of December 1, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 72
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
DISCIPLINED EQUITY
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,100 $ 49,580 5,761 $122,198
Issued in exchange for:
Assets of NationsBank Common Trust Growth Fund (Note
10)................................................... -- -- 2,279 47,340
Assets of NationsBank Common Trust Oklahoma Growth Fund
(Note 10)............................................. -- -- 205 4,245
Institutional Shares of Emerald Equity Fund (Note 10)... -- -- 11,872 249,848
Issued as reinvestment of dividends....................... 493 11,338 596 12,584
Redeemed.................................................. (2,310) (58,879) (9,046) (192,810)
------ -------- ------ --------
Net increase/(decrease)................................... 283 $ 2,039 11,667 $243,405
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 1,036 $ 24,042 3,454 $ 71,438
Issued in exchange for Retail Shares of Emerald Equity
Fund (Note 10).......................................... -- -- 2,242 47,004
Issued as reinvestment of dividends....................... 101 2,312 132 2,780
Redeemed.................................................. (1,288) (29,878) (3,913) (80,705)
------ -------- ------ --------
Net increase/(decrease)................................... (151) $ (3,524) 1,915 $ 40,517
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 290 $ 6,538 672 $ 13,830
Issued as reinvestment of dividends....................... 89 1,968 183 3,754
Redeemed.................................................. (227) (5,088) (359) (7,232)
------ -------- ------ --------
Net increase/(decrease)................................... 152 $ 3,418 496 $ 10,352
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 14 $ 329 35 $ 723
Issued as reinvestment of dividends....................... 3 68 6 118
Redeemed.................................................. (7) (152) (24) (498)
------ -------- ------ --------
Net increase/(decrease)................................... 10 $ 245 17 $ 343
====== ======== ====== ========
Total net increase/(decrease)............................. 294 $ 2,178 14,095 $294,617
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 73
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FOCUSED EQUITIES
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,906 $ 66,381 6,465 $ 91,675
Issued as reinvestment of dividends....................... 44 753 --* 11
Redeemed.................................................. (1,020) (17,273) (873) (11,954)
------ -------- ------ --------
Net increase/(decrease)................................... 2,930 $ 49,861 5,592 $ 79,732
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 7,408 $126,014 14,569 $219,849
Issued as reinvestment of dividends....................... 156 2,664 --* 12
Redeemed.................................................. (2,213) (37,830) (833) (11,959)
------ -------- ------ --------
Net increase/(decrease)................................... 5,351 $ 90,848 13,736 $207,902
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 12,483 $210,982 17,825 $250,192
Issued as reinvestment of dividends....................... 231 3,906 3 35
Redeemed.................................................. (1,378) (23,081) (1,076) (15,197)
------ -------- ------ --------
Net increase/(decrease)................................... 11,336 $191,807 16,752 $235,030
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 3,165 $ 53,721 809 $ 12,547
Issued as reinvestment of dividends....................... 9 158 --* --*
Redeemed.................................................. (254) (4,290) (27) (419)
------ -------- ------ --------
Net increase/(decrease)................................... 2,920 $ 49,589 782 $ 12,128
====== ======== ====== ========
Total net increase/(decrease)............................. 22,537 $382,105 36,862 $534,792
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than 500 shares and $500.
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 74
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
EMERGING GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
------------------- ---------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 254 $ 3,619 2,838 $ 39,174
Issued as reinvestment of dividends....................... -- -- 1,415 20,768
Redeemed.................................................. (1,187) (16,792) (10,129) (129,391)
------ -------- ------- ---------
Net increase/(decrease)................................... (933) $(13,173) (5,876) $ (69,449)
====== ======== ======= =========
PRIMARY B SHARES:+
Sold...................................................... -- $ -- -- $ --
Issued as reinvestment of dividends....................... -- -- --* 3
Redeemed.................................................. -- -- (2) (23)
------ -------- ------- ---------
Net increase/(decrease)................................... -- $ -- (2) $ (20)
====== ======== ======= =========
INVESTOR A SHARES:
Sold...................................................... 5,962 $ 84,263 23,995 $ 284,885
Issued as reinvestment of dividends....................... -- -- 192 2,766
Redeemed.................................................. (6,507) (91,533) (24,128) (287,495)
------ -------- ------- ---------
Net increase/(decrease)................................... (545) $ (7,270) 59 $ 156
====== ======== ======= =========
INVESTOR B SHARES:
Sold...................................................... 84 $ 1,109 295 $ 3,696
Issued as reinvestment of dividends....................... -- -- 469 6,405
Redeemed.................................................. (346) (4,533) (974) (11,323)
------ -------- ------- ---------
Net increase/(decrease)................................... (262) $ (3,424) (210) $ (1,222)
====== ======== ======= =========
INVESTOR C SHARES:
Sold...................................................... 13 $ 167 54 $ 622
Issued as reinvestment of dividends....................... -- -- 23 319
Redeemed.................................................. (12) (166) (110) (1,272)
------ -------- ------- ---------
Net increase/(decrease)................................... 1 $ 1 (33) $ (331)
====== ======== ======= =========
Total net increase/(decrease)............................. (1,739) $(23,866) (6,062) $ (70,866)
====== ======== ======= =========
</TABLE>
- ---------------
* Amount represents less than 500 shares.
+ There were no longer any public shareholders of the Primary B Share class as
of June 11, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE> 75
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999
--------------------- ---------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 7,986 $ 101,167 15,945 $ 214,344
Issued in exchange for:
Assets of NationsBank Common Trust Special Equity Fund
(Note 10)............................................. -- -- 464 7,075
Institutional Shares of Emerald Small Capitalization
Fund (Note 10)........................................ -- -- 9,319 139,205
Issued as reinvestment of dividends....................... -- -- 1,069 14,012
Redeemed.................................................. (9,268) (118,025) (13,195) (161,496)
------- --------- ------- ---------
Net increase/(decrease)................................... (1,282) $ (16,858) 13,602 $ 213,140
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 12,157 $ 142,415 8,141 $ 95,698
Issued in exchange for A Shares of Pacific Horizon
Aggressive Growth Fund (Note 10)........................ 12,965 159,453 -- --
Issued in exchange for Retail Shares of Emerald Small
Capitalization Fund (Note 10)........................... -- -- 933 13,883
Issued as reinvestment of dividends....................... -- -- 64 828
Redeemed.................................................. (15,671) (199,838) (8,156) (96,977)
------- --------- ------- ---------
Net increase/(decrease)................................... 9,451 $ 102,030 982 $ 13,432
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 71 $ 844 353 $ 4,713
Issued in exchange for B Shares of Pacific Horizon
Aggressive Growth Fund (Note 10)........................ 49 591 -- --
Issued as reinvestment of dividends....................... -- -- 25 322
Redeemed.................................................. (75) (902) (139) (1,729)
------- --------- ------- ---------
Net increase/(decrease)................................... 45 $ 533 239 $ 3,306
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 30 $ 51 13 $ 177
Issued in exchange for K Shares of Pacific Horizon
Aggressive Growth Fund (Note 10)........................ 337 4,122 -- --
Issued as reinvestment of dividends....................... -- -- 15 213
Redeemed.................................................. (383) (4,958) (55) (647)
------- --------- ------- ---------
Net increase/(decrease)................................... (16) $ (785) (27) $ (257)
======= ========= ======= =========
Total net increase/(decrease)............................. 8,198 $ 84,920 14,796 $ 229,621
======= ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE> 76
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL INCOME
PRIMARY A SHARES
Period ended 9/30/1999***#
(unaudited).................. $18.15 $0.22 $ 0.02 $ 0.24 $(0.25) --
INVESTOR A SHARES*
Period ended 9/30/1999#
(unaudited).................. $18.31 $0.28 $(0.22) $ 0.06 $(0.22) --
Period ended 5/14/1999......... 17.34 0.12 0.96 1.08 (0.11) --
Year ended 2/28/1999........... 17.28 0.51 0.25 0.76 (0.52) $(0.18)
Year ended 2/28/1998........... 17.35 0.58 2.89 3.47 (0.59) (2.95)
Year ended 2/28/1997**......... 16.42 0.57 2.34 2.91 (0.57) (1.41)
Year ended 2/29/1996........... 13.65 0.62 2.84 3.46 (0.69) --
Year ended 2/28/1995........... 15.42 0.57 (1.43) (0.86) (0.54) (0.37)
INVESTOR B SHARES*
Period ended 9/30/1999#
(unaudited).................. $18.27 $0.14 $(0.13) $ 0.01 $(0.19) --
Period ended 5/14/1999......... 17.30 0.09 0.96 1.05 (0.08) --
Period ended 2/28/1999***...... 17.67 0.22 (0.17) 0.05 (0.24) $(0.18)
INVESTOR C SHARES*
Period ended 9/30/1999#
(unaudited).................. $18.35 $0.11 $(0.09) $ 0.02 $(0.16) --
Period ended 5/14/1999......... 17.37 0.10 0.97 1.07 (0.09) --
Year ended 2/28/1999........... 17.24 0.40 0.31 0.71 (0.40) $(0.18)
Year ended 2/28/1998........... 17.30 0.48 2.89 3.37 (0.48) (2.95)
Period ended 2/28/1997***...... 16.24 0.32 2.43 2.75 (0.28) (1.41)
</TABLE>
- ---------------
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon Capital Income
Fund's A Shares, B Shares and K Shares, which were reorganized into the
Investor A Shares, Investor B Shares and Investor C Shares, respectively, as
of May 21, 1999.
** As of July 22, 1996, the Portfolio designated the existing series of shares
as "A" Shares.
*** Capital Income Primary A, Investor B and Investor C Shares commenced
operations on May 21, 1999, July 15, 1998 and July 22, 1996, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements,
was less than 0.01%.
(b) There were no fee waivers or expense reimbursements during the period.
(c) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE> 77
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.25) $18.14 1.32% $ 6,901 0.96%+(a)(c) 3.16%+ 18% 1.01%+(a)
$(0.22) $18.15 0.33% $306,364 1.21%+(a)(c) 2.91%+ 18% 1.26%+(a)
(0.11) 18.31 6.25 352,000 1.30+ 3.07+ 16 1.32+
(0.70) 17.34 4.64 356,000 1.15 2.97 66 1.16(a)(b)
(3.54) 17.28 21.54 391,000 1.10 3.35 69 1.12(a)
(1.98) 17.35 18.53 309,000 1.18 3.40 124 1.19(a)
(0.69) 16.42 25.96 247,000 1.23 4.05 57 1.26(a)
(0.91) 13.65 (5.61) 198,000 0.97 4.48 94 1.14
$(0.19) $18.09 0.05% $ 5,335 1.96%+(a)(c) 2.16%+ 18% 2.01%+(a)
(0.08) 18.27 6.10 4,000 2.06+ 2.34+ 16 2.08+
(0.42) 17.30 0.44 3,000 1.96+ 2.14+ 66 1.97+(a)(b)
$(0.16) $18.21 0.07% $ 1,931 1.96%+(a)(c) 2.16%+ 18% 2.01%+(a)
(0.09) 18.35 6.17 4,000 1.80+ 2.56+ 16 2.07+
(0.58) 17.37 4.29 4,000 1.65 2.45 66 1.91(a)
(3.43) 17.24 20.97 3,000 1.60 2.85 69 1.86
(1.69) 17.30 17.47 1,000 1.66+ 2.85+ 124 1.91+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE> 78
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCED ASSETS
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited).................. $10.39 $0.13 $(0.25) $(0.12) $(0.13) --
Year ended 3/31/1999#.......... 11.49 0.26 (0.39) (0.13) (0.23) (0.74)
Year ended 3/31/1998........... 11.15 0.29 2.68 2.97 (0.29) (2.34)
Year ended 3/31/1997........... 11.65 0.39 1.03 1.42 (0.38) (1.54)
Period ended 3/31/1996(a)...... 12.68 0.11 0.45 0.56 (0.18) (1.41)
Year ended 11/30/1995.......... 10.44 0.38 2.21 2.59 (0.33) (0.02)
Year ended 11/30/1994.......... 10.87 0.25 (0.43) (0.18) (0.25) --
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited).................. $10.38 $0.11 $(0.25) $(0.14) $(0.11) --
Year ended 3/31/1999#.......... 11.47 0.23 (0.38) (0.15) (0.20) (0.74)
Year ended 3/31/1998........... 11.13 0.27 2.68 2.95 (0.27) (2.34)
Year ended 3/31/1997........... 11.64 0.34 1.05 1.39 (0.36) (1.54)
Period ended 3/31/1996(a)...... 12.66 0.11 0.45 0.56 (0.17) (1.41)
Year ended 11/30/1995.......... 10.42 0.34 2.23 2.57 (0.31) (0.02)
Year ended 11/30/1994.......... 10.86 0.22 (0.44) (0.22) (0.22) --
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited).................. $10.36 $0.07 $(0.25) $(0.18) $(0.07) --
Year ended 3/31/1999#.......... 11.45 0.15 (0.38) (0.23) (0.12) (0.74)
Year ended 3/31/1998........... 11.11 0.19 2.68 2.87 (0.19) (2.34)
Year ended 3/31/1997........... 11.62 0.29 1.04 1.33 (0.30) (1.54)
Period ended 3/31/1996(a)...... 12.63 0.09 0.45 0.54 (0.14) (1.41)
Year ended 11/30/1995.......... 10.40 0.28 2.22 2.50 (0.25) (0.02)
Year ended 11/30/1994.......... 10.85 0.17 (0.44) (0.27) (0.18) --
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited).................. $10.32 $0.07 $(0.25) $(0.18) $(0.07) --
Year ended 3/31/1999#.......... 11.41 0.15 (0.38) (0.23) (0.12) (0.74)
Year ended 3/31/1998........... 11.08 0.20 2.67 2.87 (0.20) (2.34)
Year ended 3/31/1997........... 11.60 0.33 1.02 1.35 (0.33) (1.54)
Period ended 3/31/1996(a)...... 12.61 0.09 0.45 0.54 (0.14) (1.41)
Year ended 11/30/1995.......... 10.38 0.26 2.21 2.47 (0.22) (0.02)
Year ended 11/30/1994.......... 10.82 0.14 (0.43) (0.29) (0.15) --
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements,
was less than 0.01%.
(c) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE> 79
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.13) $10.14 (1.22)% $40,912 1.09%+(b)(c) 2.27% 36% 1.09%+(b)
(0.97) 10.39 (1.20) 48,373 1.00(b)(c) 2.43 126 1.00(b)
(2.63) 11.49 30.35 20,299 1.08(b)(c) 2.70 276 1.08(b)
(1.92) 11.15 12.50 135,731 1.00(b) 3.31 264 1.00(b)
(1.59) 11.65 4.90 164,215 1.00+ 2.91+ 83 1.00+
(0.35) 12.68 25.27 163,198 0.99 3.25 174 0.99
(0.25) 10.44 (1.73) 162,215 0.98 2.31 156 0.99
$(0.11) $10.13 (1.34)% $16,217 1.34%+(b)(c) 2.02% 36% 1.34%+(b)
(0.94) 10.38 (1.36) 20,979 1.25(b)(c) 2.18 126 1.25(b)
(2.61) 11.47 30.13 16,009 1.33(b)(c) 2.45 276 1.33(b)
(1.90) 11.13 12.18 9,075 1.25(b) 3.06 264 1.25(b)
(1.58) 11.64 4.86 6,261 1.25+ 2.66+ 83 1.25+
(0.33) 12.66 25.01 5,276 1.24 3.00 174 1.24
(0.22) 10.42 (2.02) 4,881 1.23 2.06 156 1.24
$(0.07) $10.11 (1.73)% $66,055 2.09%+(b)(c) 1.27% 36% 2.09%+(b)
(0.86) 10.36 (2.13) 73,735 2.00(b)(c) 1.43 126 2.00(b)
(2.53) 11.45 29.35 78,813 2.00(b)(c) 1.78 276 2.00(b)
(1.84) 11.11 11.62 64,058 1.75(b) 2.56 264 1.75(b)
(1.55) 11.62 4.69 65,764 1.75+ 2.16+ 83 1.75+
(0.27) 12.63 24.35 62,275 1.74 2.50 174 1.74
(0.18) 10.40 (2.51) 52,905 1.73 1.56 156 1.74
$(0.07) $10.07 (1.72)% $ 1,484 2.09%+(b)(c) 1.27% 36% 2.09%+(b)
(0.86) 10.32 (2.17) 1,614 2.00(b)(c) 1.43 126 2.00(b)
(2.54) 11.41 29.43 1,947 1.91(b)(c) 1.87 276 1.91(b)
(1.87) 11.08 11.85 1,396 1.50(b) 2.81 264 1.50(b)
(1.55) 11.60 4.71 1,187 1.62+ 2.29+ 83 1.62+
(0.24) 12.61 24.03 992 1.99 2.25 174 1.99
(0.15) 10.38 (2.72) 951 1.98 1.31 156 1.99
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE> 80
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION
PRIMARY A SHARES
Period ended 9/30/1999#***
(unaudited).................. $23.06 $0.29 $(0.51) $(0.22) $(0.18) --
INVESTOR A SHARES*
Period ended 9/30/1999#
(unaudited).................. $23.40 $0.18 $(0.77) $(0.59) $(0.15) --
Period ended 5/14/1999......... 22.50 0.10 0.91 1.01 (0.11) --
Year ended 2/28/1999........... 21.41 0.55 2.48 3.03 (0.45) $(1.49)
Year ended 2/28/1998........... 19.40 0.52 3.72 4.24 (0.47) (1.76)
Year ended 2/28/1997**......... 17.52 0.48 2.50 2.98 (0.46) (0.64)
Year ended 2/29/1996........... 15.15 0.52 2.86 3.38 (0.53) (0.48)
Year ended 2/28/1995........... 14.84 0.48 0.24 0.72 (0.41) --
INVESTOR B SHARES*
Period ended 9/30/1999#
(unaudited).................. $23.32 $0.13 $(0.77) $(0.64) $(0.10) --
Period ended 5/14/1999......... 22.45 0.06 0.89 0.95 (0.08) --
Period ended 2/28/1999***...... 23.17 0.22 0.75 0.97 (0.20) $(1.49)
INVESTOR C SHARES*
Period ended 9/30/1999#
(unaudited).................. $23.33 $0.12 $(0.77) $(0.65) $(0.07) --
Period ended 5/14/1999......... 22.45 0.05 0.92 0.97 (0.09) --
Year ended 2/28/1999........... 21.36 0.44 2.49 2.93 (0.35) $(1.49)
Year ended 2/28/1998........... 19.40 0.41 3.66 4.07 (0.36) (1.75)
Period ended 2/28/1997***...... 17.23 0.19 2.80 2.99 (0.18) (0.64)
SEAFIRST SHARES*
Period ended 9/30/1999#
(unaudited).................. $17.66 $0.16 $(0.59) $(0.43) $(0.18) --
Period ended 5/14/1999......... 17.01 0.08 0.69 0.77 (0.12) --
Year ended 2/28/1999........... 16.63 0.45 1.88 2.33 (0.46) $(1.49)
Year ended 2/28/1998***........ 15.79 0.30 1.65 1.95 (0.24) (0.87)
</TABLE>
- ---------------
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon Asset Allocation
Fund's A Shares, B Shares, K Shares and SRF Shares, which were reorganized
into the Investor A Shares, Investor B Shares, Investor C Shares and
Seafirst Shares, respectively, as of May 21, 1999.
** As of July 22, 1996, the Fund designated the existing series of shares as
"A" Shares.
*** Asset Allocation Primary A, Investor B, Investor C and Seafirst Shares
commenced operations on May 21, 1999, July 15, 1998, July 22, 1996 and June
23, 1997, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE> 81
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.18) $22.66 (0.96)% $ 8,650 0.98%+(a) 2.43%+ 30% 1.03%+(a)
$(0.15) $22.66 (2.54)% $ 84,401 1.23%+(a) 2.18%+ 30% 1.28%+(a)
(0.11) 23.40 4.50 72,000 1.18+ 2.01+ 20 1.20+
(1.94) 22.50 14.72 72,000 0.94 2.64 114 0.94
(2.23) 21.41 23.07 49,000 1.03 2.67 67 1.09
(1.10) 19.40 17.64 35,000 1.25 2.59 116 1.94
(1.01) 17.52 22.80 22,000 0.62 3.49 157 2.92
(0.41) 15.15 5.03 6,000 0.00 4.25 142 7.89
$(0.10) $22.58 (2.75)% $108,591 1.98%+(a) 1.43%+ 30% 2.03%+(a)
(0.08) 23.32 4.26 10,000 1.95+ 1.26+ 20 1.97+
(1.69) 22.45 4.59 6,000 1.74+ 1.92+ 114 1.74
$(0.07) $22.61 (2.80)% $ 2,093 1.98%+(a) 1.43%+ 30% 2.03%+(a)
(0.09) 23.33 4.31 2,000 1.67+ 1.52+ 20 1.96+
(1.84) 22.45 14.23 2,000 1.44 2.14 114 1.69
(2.11) 21.36 22.10 2,000 1.52 2.17 67 1.58
(0.82) 19.40 17.69 1,000 1.94+ 2.31+ 116 3.26+
$(0.18) $17.05 (2.45)% $199,336 0.98%+(a) 2.43%+ 30% 1.28%+(a)
(0.12) 17.66 4.52 214,000 0.95+ 2.23+ 20 1.19+
(1.95) 17.01 14.76 208,000 0.93 2.65 114 0.94
(1.11) 16.63 13.56 197,000 0.95+ 2.73+ 67 0.97+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE> 82
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VALUE
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited)............... $18.16 $ 0.06 $(0.31) $(0.25) $(0.05) $(0.67)
Year ended 3/31/1999#....... 19.92 0.13 0.64 0.77 (0.14) (2.39)
Year ended 3/31/1998#....... 17.87 0.20 5.98 6.18 (0.19) (3.94)
Year ended 3/31/1997........ 16.60 0.26 2.69 2.95 (0.26) (1.42)
Period ended 3/31/1996(a)... 16.21 0.07 1.06 1.13 (0.12) (0.62)
Year ended 11/30/1995....... 12.98 0.27 3.91 4.18 (0.28) (0.67)
Year ended 11/30/1994....... 13.74 0.24 (0.23) 0.01 (0.23) (0.54)
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited)............... $18.16 $ 0.03 $(0.29) $(0.26) $(0.03) $(0.67)
Year ended 3/31/1999#....... 19.92 0.09 0.63 0.72 (0.09) (2.39)
Year ended 3/31/1998#....... 17.87 0.15 5.98 6.13 (0.14) (3.94)
Year ended 3/31/1997........ 16.60 0.21 2.70 2.91 (0.22) (1.42)
Period ended 3/31/1996(a)... 16.21 0.05 1.06 1.11 (0.10) (0.62)
Year ended 11/30/1995....... 12.98 0.23 3.92 4.15 (0.25) (0.67)
Year ended 11/30/1994....... 13.72 0.20 (0.20) 0.00 (0.20) (0.54)
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited)............... $18.00 $(0.03) $(0.30) $(0.33) -- $(0.67)
Year ended 3/31/1999#....... 19.81 (0.05) 0.63 0.58 -- (2.39)
Year ended 3/31/1998#....... 17.81 0.02 5.96 5.98 (0.04) (3.94)
Year ended 3/31/1997........ 16.55 0.14 2.68 2.82 (0.14) (1.42)
Period ended 3/31/1996(a)... 16.15 0.03 1.05 1.08 (0.06) (0.62)
Year ended 11/30/1995....... 12.94 0.17 3.89 4.06 (0.18) (0.67)
Year ended 11/30/1994....... 13.71 0.15 (0.22) (0.07) (0.16) (0.54)
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited)............... $17.98 $(0.03) $(0.29) $(0.32) -- $(0.67)
Year ended 3/31/1999#....... 19.75 (0.02) 0.65 0.63 (0.01) (2.39)
Year ended 3/31/1998#....... 17.75 0.04 5.95 5.99 (0.05) (3.94)
Year ended 3/31/1997........ 16.50 0.17 2.68 2.85 (0.18) (1.42)
Period ended 3/31/1996(a)... 16.09 0.04 1.05 1.09 (0.06) (0.62)
Year ended 11/30/1995....... 12.90 0.13 3.88 4.01 (0.15) (0.67)
Year ended 11/30/1994....... 13.64 0.12 (0.22) (0.10) (0.10) (0.54)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(c) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE> 83
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.72) $17.19 (1.74)% $1,672,535 0.96%+(b) 0.62%+ 33% 0.96%+(b)
(2.53) 18.16 4.15 1,939,704 0.94(b)(c) 0.76 38 0.94(b)
(4.13) 19.92 38.53 2,248,460 0.95(b) 1.04 79 0.95(b)
(1.68) 17.87 18.07 1,200,853 0.97(b) 1.51 47 0.97(b)
(0.74) 16.60 7.20 998,957 0.96+ 1.30+ 12 0.96+
(0.95) 16.21 34.53 956,669 0.94 1.90 63 0.94
(0.77) 12.98 (0.08) 799,743 0.93 1.85 75 0.93
$(0.70) $17.20 (1.86)% $ 124,207 1.21%+(b) 0.37%+ 33% 1.21%+(b)
(2.48) 18.16 3.96 136,691 1.19(b)(c) 0.51 38 1.19(b)
(4.08) 19.92 38.22 149,167 1.20(b) 0.79 79 1.20(b)
(1.64) 17.87 17.80 70,305 1.22(b) 1.26 47 1.22(b)
(0.72) 16.60 7.07 54,341 1.21+ 1.05+ 12 1.21+
(0.92) 16.21 34.22 48,440 1.19 1.65 63 1.19
(0.74) 12.98 (0.17) 35,445 1.18 1.60 75 1.18
$(0.67) $17.00 (2.21)% $ 147,903 1.96%+(b) (0.38)%+ 33% 1.96%+(b)
(2.39) 18.00 3.11 154,025 1.94(b)(c) (0.24) 38 1.94(b)
(3.98) 19.81 37.29 149,635 1.87(b) 0.12 79 1.87(b)
(1.56) 17.81 17.21 99,999 1.72(b) 0.76 47 1.72(b)
(0.68) 16.55 6.90 88,861 1.71+ 0.55+ 12 1.71+
(0.85) 16.15 33.55 83,699 1.69 1.15 63 1.69
(0.70) 12.94 (0.69) 42,530 1.68 1.10 75 1.68
$(0.67) $16.99 (2.15)% $ 11,562 1.96%+(b) (0.38)%+ 33% 1.96%+(b)
(2.40) 17.98 3.39 12,106 1.70(b)(c) 0.00 38 1.94(b)
(3.99) 19.75 37.55 13,969 1.78(b) 0.21 79 1.78(b)
(1.60) 17.75 17.51 6,519 1.47(b) 1.01 47 1.47(b)
(0.68) 16.50 6.99 4,633 1.58+ 0.68+ 12 1.58+
(0.82) 16.09 33.15 4,185 1.94 0.90 63 1.94
(0.64) 12.90 (0.92) 2,983 1.93 0.85 75 1.93
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE> 84
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQUITY INCOME
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited).................. $11.36 $0.08 $ 0.10 $ 0.18 $(0.08) --
Year ended 3/31/1999#.......... 13.94 0.23 (1.45) (1.22) (0.23) $(1.13)
Year ended 3/31/1998#.......... 12.30 0.29 3.79 4.08 (0.28) (2.16)
Year ended 3/31/1997........... 13.14 0.43 1.55 1.98 (0.41) (2.41)
Period ended 3/31/1996(a)...... 11.81 0.30 1.77 2.07 (0.37) (0.37)
Year ended 5/31/1995........... 11.43 0.42 1.11 1.53 (0.42) (0.73)
Year ended 5/31/1994........... 12.06 0.38 0.22 0.60 (0.42) (0.81)
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited).................. $11.31 $0.06 $ 0.11 $ 0.17 $(0.07) --
Year ended 3/31/1999#.......... 13.89 0.20 (1.45) (1.25) (0.20) $(1.13)
Year ended 3/31/1998#.......... 12.26 0.26 3.77 4.03 (0.24) (2.16)
Year ended 3/31/1997........... 13.11 0.36 1.58 1.94 (0.38) (2.41)
Period ended 3/31/1996(a)...... 11.78 0.27 1.77 2.04 (0.34) (0.37)
Year ended 5/31/1995........... 11.41 0.40 1.10 1.50 (0.40) (0.73)
Year ended 5/31/1994........... 12.02 0.37 0.21 0.58 (0.38) (0.81)
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited).................. $11.31 $0.02 $ 0.11 $ 0.13 $(0.03) --
Year ended 3/31/1999#.......... 13.87 0.11 (1.45) (1.34) (0.09) $(1.13)
Year ended 3/31/1998#.......... 12.25 0.17 3.77 3.94 (0.16) (2.16)
Year ended 3/31/1997........... 13.10 0.31 1.57 1.88 (0.32) (2.41)
Period ended 3/31/1996(a)...... 11.77 0.22 1.76 1.98 (0.28) (0.37)
Year ended 5/31/1995........... 11.40 0.34 1.11 1.45 (0.35) (0.73)
Period ended 5/31/1994*........ 11.98 0.37 0.22 0.59 (0.36) (0.81)
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited).................. $11.45 $0.02 $ 0.11 $ 0.13 $(0.03) --
Year ended 3/31/1999#.......... 14.01 0.12 (1.44) (1.32) (0.11) $(1.13)
Year ended 3/31/1998#.......... 12.35 0.18 3.83 4.01 (0.19) (2.16)
Year ended 3/31/1997........... 13.19 0.33 1.59 1.92 (0.35) (2.43)
Period ended 3/31/1996(a)...... 11.83 0.21 1.78 1.99 (0.26) (0.37)
Year ended 5/31/1995........... 11.47 0.32 1.08 1.40 (0.31) (0.73)
Year ended 5/31/1994........... 12.04 0.28 0.21 0.49 (0.25) (0.81)
</TABLE>
- ---------------
* Equity Income Investor B Shares commenced operations on June 7, 1993.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(c) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE> 85
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.08) $11.46 1.57% $492,164 0.87%+(b)(c) 1.31%+ 13% 0.87%+(b)
(1.36) 11.36 (9.40) 575,076 0.80(b)(c) 1.92 69 0.80(b)
(2.44) 13.94 37.21 915,630 0.86(b) 2.22 74 0.86(b)
(2.82) 12.30 15.62 200,772 0.91(b) 3.09 102 0.91(b)
(0.74) 13.14 17.98 283,142 0.90+ 2.84+ 59 0.90+
(1.15) 11.81 14.79 283,082 0.92 3.75 158 0.93
(1.23) 11.43 5.00 225,740 0.94 3.41 116 0.95
$(0.07) $11.41 1.45% $ 41,802 1.12%+(b)(c) 1.06%+ 13% 1.12%+(b)
(1.33) 11.31 (9.87) 51,278 1.05(b)(c) 1.67 69 1.05(b)
(2.40) 13.89 36.92 68,006 1.11(b) 1.97 74 1.11(b)
(2.79) 12.26 15.30 47,891 1.16(b) 2.84 102 1.16(b)
(0.71) 13.11 17.75 42,606 1.15+ 2.59+ 59 1.15+
(1.13) 11.78 14.53 35,538 1.17 3.50 158 1.18
(1.19) 11.41 4.74 33,691 1.19 3.16 116 1.20
$(0.03) $11.41 1.10% $ 94,712 1.87%+(b)(c) 0.31%+ 13% 1.87%+(b)
(1.22) 11.31 (10.49) 107,747 1.80(b)(c) 0.92 69 1.80(b)
(2.32) 13.87 36.02 144,929 1.78(b) 1.30 74 1.78(b)
(2.73) 12.25 14.76 108,055 1.66(b) 2.34 102 1.66(b)
(0.65) 13.10 17.21 104,026 1.65+ 2.09+ 59 1.65+
(1.08) 11.77 14.03 75,371 1.67 3.00 158 1.68
(1.17) 11.40 4.84 46,043 1.69+ 2.66+ 116 1.70+
$(0.03) $11.55 1.07% $ 5,183 1.87%+(b)(c) 0.31%+ 13% 1.87%+(b)
(1.24) 11.45 (10.28) 5,801 1.64(b)(c) 1.08 69 1.80(b)
(2.35) 14.01 36.28 10,348 1.69(b) 1.39 74 1.69(b)
(2.76) 12.35 15.01 5,007 1.41(b) 2.59 102 1.41(b)
(0.63) 13.19 17.20 4,612 1.75+ 1.99+ 59 1.75+
(1.04) 11.83 13.49 4,278 1.92 2.75 158 1.93
(1.06) 11.47 3.96 4,221 1.94 2.41 116 1.95
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE> 86
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQUITY INDEX
PRIMARY A SHARES
Six months ended 9/30/1999
(unaudited).................. $25.06 $0.14 $(0.09) $0.05 $(0.13) $(0.05)
Year ended 3/31/1999........... 22.41 0.26 3.63 3.89 (0.25) (0.99)
Year ended 3/31/1998#.......... 15.89 0.27 7.11 7.38 (0.27) (0.59)
Year ended 3/31/1997........... 13.58 0.26 2.36 2.62 (0.26) (0.05)
Period ended 3/31/1996(a)...... 12.91 0.08 0.86 0.94 (0.13) (0.14)
Year ended 11/30/1995.......... 9.84 0.28 3.20 3.48 (0.28) (0.13)
Period ended 11/30/1994*....... 10.00 0.24 (0.21) 0.03 (0.19) --
INVESTOR A SHARES
Six months ended 9/30/1999
(unaudited).................. $24.94 $0.10 $(0.08) $0.02 $(0.10) $(0.05)
Year ended 3/31/1999........... 22.31 0.19 3.63 3.82 (0.20) (0.99)
Year ended 3/31/1998#.......... 15.87 0.21 7.05 7.26 (0.23) (0.59)
Year ended 3/31/1997........... 13.58 0.25 2.32 2.57 (0.23) (0.05)
Period ended 3/31/1996(a)...... 12.91 0.06 0.87 0.93 (0.12) (0.14)
Year ended 11/30/1995*......... 12.29 0.03 0.59 0.62 -- --
</TABLE>
- ---------------
* Equity Index Primary A and Investor A Shares commenced operations on
December 15, 1993 and October 10, 1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE> 87
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE NET RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING ASSETS NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCLUDING INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET INTEREST AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS EXPENSE ASSETS RATE ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.18) $24.93 0.17% $986,201 0.35%+(b) 0.35%+ 1.05%+ 2% 0.71%+(b)
(1.24) 25.06 18.26 933,313 0.35(b) -- 1.17 4 0.71(b)
(0.86) 22.41 47.38 656,523 0.35(b) 0.36% 1.39 26 0.66(b)
(0.31) 15.89 19.41 567,039 0.35(b) -- 1.91 5 0.70(b)
(0.27) 13.58 7.33 192,388 0.35+ 0.35+ 1.99+ 2 0.73+
(0.41) 12.91 36.35 145,021 0.37 0.38 2.44 18 0.78
(0.19) 9.84 0.29 123,147 0.35+ -- 2.64+ 14 0.79+
$(0.15) $24.81 0.06% $ 20,900 0.60%+(b) 0.60%+ 0.80%+ 2% 0.96%+(b)
(1.19) 24.94 18.00 13,827 0.60(b) -- 0.92 4 0.96(b)
(0.82) 22.31 46.58 4,595 0.60(b) 0.61% 1.14 26 0.91(b)
(0.28) 15.87 19.06 2,574 0.60(b) -- 1.66 5 0.95(b)
(0.26) 13.58 7.26 95 0.35+ 0.35+ 1.99+ 2 0.73+
-- 12.91 5.04 11 0.62+ 0.63+ 2.19+ 18 1.03+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE> 88
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROWTH & INCOME
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited).................. $14.91 $(0.02) $0.67 $0.65 -- $(0.03)
Year ended 3/31/1999#.......... 12.03 0.00(b) 2.89 2.89 -- (0.01)
Period ended 3/31/1998*#....... 10.00 0.01 2.02 2.03 -- --
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited).................. $14.95 $(0.03) $0.66 $0.63 -- $(0.03)
Year ended 3/31/1999#.......... 12.02 (0.03) 2.97 2.94 -- (0.01)
Period ended 3/31/1998*#....... 10.00 0.00(b) 2.02 2.02 -- --
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited).................. $14.85 $(0.09) $0.66 $0.57 -- $(0.03)
Year ended 3/31/1999#.......... 12.02 (0.12) 2.96 2.84 -- (0.01)
Period ended 3/31/1998*#....... 10.00 (0.02) 2.04 2.02 -- --
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited).................. $14.86 $(0.09) $0.67 $0.58 -- $(0.03)
Year ended 3/31/1999#.......... 12.02 (0.12) 2.97 2.85 -- (0.01)
Period ended 3/31/1998*#....... 10.00 (0.02) 2.04 2.02 -- --
</TABLE>
- ---------------
* Growth & Income Primary A, Investor A, Investor B and Investor C Shares
commenced operations on December 31, 1997.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) Amount represents less than 0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 89
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.03) $15.53 4.38% $ 60,459 1.10%+(a) (0.22)%+ 60% 1.10%+(a)
(0.01) 14.91 24.05 52,229 1.25(a) 0.05 150 1.25(a)
-- 12.03 20.30 2,517 1.09+(a) 0.38+ 22 1.97+(a)
$(0.03) $15.55 4.24% $ 69,018 1.35%+(a) (0.47)%+ 60% 1.35%+(a)
(0.01) 14.95 24.38 43,392 1.50(a) (0.20) 150 1.50(a)
-- 12.02 20.20 1,141 1.34+(a) 0.13+ 22 2.22+(a)
$(0.03) $15.39 3.86% $153,325 2.10%+(a) (0.78)%+ 60% 2.10%+(a)
(0.01) 14.85 23.55 99,257 2.25(a) (0.95) 150 2.25(a)
-- 12.02 20.20 7,907 2.09+(a) (0.62)+ 22 2.97+(a)
$(0.03) $15.41 3.92% $ 11,438 2.10%+(a) (0.78)%+ 60% 2.10%+(a)
(0.01) 14.86 23.63 3,233 2.25(a) (0.95) 150 2.25(a)
-- 12.02 20.20 518 2.09+(a) (0.62)+ 22 2.97+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 90
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BLUE CHIP
PRIMARY A SHARES
Period ended 9/30/1999#***
(unaudited).................. $35.00 $ 0.04 $ (0.47) $(0.43) $(0.02) --
INVESTOR A SHARES*
Period ended 9/30/1999#
(unaudited).................. $35.92 $ 0.00(b) $ (1.39) $(1.39) -- --
Period ended 5/14/1999......... 33.43 0.00(b) 2.49 2.49 -- --
Year ended 2/28/1999........... 29.90 0.09 5.26 5.35 $(0.10) $(1.72)
Year ended 2/28/1998........... 25.22 0.16 7.91 8.07 (0.15) (3.24)
Year ended 2/28/1997**......... 20.53 0.23 5.21 5.44 (0.22) (0.53)
Year ended 2/29/1996........... 15.81 0.26 4.96 5.22 (0.28) (0.22)
Year ended 2/28/1995........... 14.97 0.31 0.80 1.11 (0.27) --
INVESTOR B SHARES*
Period ended 9/30/1999#
(unaudited).................. $35.77 $(0.11) $ (1.38) $(1.49) -- --
Period ended 5/14/1999......... 33.34 (0.02) 2.45 2.43 -- --
Period ended 2/28/1999***...... 33.73 (0.05) 1.39 1.34 $(0.01) $(1.72)
INVESTOR SHARES C*
Period ended 9/30/1999#
(unaudited).................. $35.69 $(0.09) $ (1.39) $(1.48) -- --
Period ended 5/14/1999......... 33.24 (0.04) 2.49 2.45 -- --
Year ended 2/28/1999........... 29.79 (0.06) 5.23 5.17 -- $(1.72)
Year ended 2/28/1998........... 25.20 0.04 7.83 7.87 $(0.04) (3.24)
Period ended 2/28/1997***...... 20.38 0.07 5.35 5.42 (0.07) (0.53)
SEAFIRST SHARES*
Period ended 9/30/1999#
(unaudited).................. $31.64 $ 0.03 $ (1.23) $(1.20) $(0.01) --
Period ended 5/14/1999......... 29.45 0.02 2.19 2.21 (0.02) --
Year ended 2/28/1999........... 26.53 0.14 4.66 4.80 (0.16) $(1.72)
Period ended 2/28/1998***...... 24.02 0.14 3.99 4.13 (0.12) (1.50)
</TABLE>
- ---------------
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon Blue Chip Fund's A
Shares, B Shares, K Shares and SRF Shares, which were reorganized into the
Investor A Shares, Investor B Shares, Investor C Shares and Seafirst Shares,
respectively, as of May 21, 1999.
** As of July 22, 1996, the Fund designated the existing series of shares as
"A" Shares.
*** Blue Chip Primary A, Investor B, Investor C and Seafirst Shares commenced
operations on May 21, 1999, July 15, 1998, July 22, 1996 and June 23, 1997.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) Amount represents less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 91
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$(0.02) $34.55 (1.24)% $ 30,278 0.96%+ 0.24%+ 1.00%+
-- $34.53 (3.90)% $358,743 1.21%+ (0.01)%+ 1.25%+
-- 35.92 7.45 423,000 1.29+ (0.03)+ 1.33+
$(1.82) 33.43 18.58 401,000 1.16 0.31 1.17
(3.39) 29.90 33.96 288,000 1.18 0.63 1.22
(0.75) 25.22 27.01 153,000 1.28 0.99 1.71
(0.50) 20.53 33.39 67,000 0.83 1.63 2.28
(0.27) 15.81 7.60 6,000 0.00 2.46 6.32
-- $34.28 (4.17)% $ 36,927 1.96%+ (0.76)%+ 2.00%+
-- 35.77 7.29 21,000 2.05+ (0.77)+ 2.09+
$(1.73) 33.34 4.53 13,000 1.97+ (0.58)+ 1.99+
-- $34.21 (4.15)% $ 12,150 1.96%+ (0.76)%+ 2.00%+
-- 35.69 7.37 15,000 1.80+ (0.54)+ 2.08+
$(1.72) 33.24 17.96 13,000 1.66 (0.22) 1.92
(3.28) 29.79 33.08 7,000 1.67 0.12 1.69
(0.60) 25.20 26.96 1,000 1.92+ 0.45+ 2.12+
-- $30.43 (3.78)% $419,108 0.96%+ 0.24%+ 1.25%+
$(0.02) 31.64 7.52 444,000 0.95+ 0.32+ 1.34+
(1.88) 29.45 18.89 418,000 0.95 0.52 1.17
(1.62) 26.53 19.30 370,000 0.95+ 0.81+ 1.15+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 92
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
STRATEGIC EQUITY
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited).................. $13.86 $ 0.00(b) $(0.17) $(0.17) -- $(0.14)
Period ended 3/31/1999*#....... 10.00 0.00(b) 3.87 3.87 -- (0.01)
INVESTOR A SHARES
Period ended 9/30/1999**#
(unaudited).................. $13.88 $ 0.00(b) $(0.35) $(0.35) -- --
INVESTOR B SHARES
Period ended 9/30/1999**#
(unaudited).................. $13.88 $(0.01) $(0.35) $(0.36) -- --
INVESTOR C SHARES
Period ended 9/30/1999**#
(unaudited).................. $13.88 $ 0.00(b) $(0.35) $(0.35) -- --
</TABLE>
- ---------------
* Strategic Equity Primary A Shares commenced operations on October 2, 1998.
** Strategic Equity Investor A Shares, Investor B Shares and Investor C Shares
commenced operations on August 2, 1999.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) Amount represents less than 0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 93
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) NET ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.14) $13.55 (1.26)% $368,302 0.95%+(a) (0.07)%+ 23% 0.95%+(a)
(0.01) 13.86 38.65 266,823 1.07+(a) (0.03)+ 34 1.07+(a)
-- $13.53 (1.41)% $ 307 1.20%+(a) (0.32)%+ 23% 1.20%+(a)
-- $13.52 (1.48)% $ 93 1.95%+(a) (0.93)%+ 23% 1.95%+(a)
-- $13.53 (1.41)% $ 338 1.95%+(a) (0.93)%+ 23% 1.95%+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 94
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL GROWTH
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited)........................ $12.05 $(0.02) $0.12 $0.10 -- $(0.10)
Year ended 3/31/1999#................ 13.30 (0.00)(b) 1.59 1.59 -- (2.84)
Year ended 3/31/1998#................ 11.70 0.02 5.27 5.29 (0.01) (3.68)
Year ended 3/31/1997#................ 13.43 0.05 1.66 1.71 (0.05) (3.39)
Period ended 3/31/1996(a)............ 14.24 0.02 0.38 0.40 (0.02) (1.19)
Year ended 11/30/1995................ 11.23 0.09 3.28 3.37 (0.10) (0.26)
Year ended 11/30/1994................ 11.08 0.09 0.14 0.23 (0.08) (0.00)(b)
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited)........................ $11.97 $(0.04) $0.12 $0.08 -- $(0.10)
Year ended 3/31/1999#................ 13.26 (0.03) 1.58 1.55 -- (2.84)
Year ended 3/31/1998#................ 11.67 (0.01) 5.28 5.27 -- (3.68)
Year ended 3/31/1997#................ 13.41 0.02 1.65 1.67 (0.02) (3.39)
Period ended 3/31/1996(a)............ 14.22 0.01 0.38 0.39 (0.01) (1.19)
Year ended 11/30/1995................ 11.21 0.06 3.28 3.34 (0.07) (0.26)
Year ended 11/30/1994................ 11.06 0.07 0.14 0.21 (0.06) (0.00)(b)
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited)........................ $11.39 $(0.08) $0.12 $0.04 -- $(0.10)
Year ended 3/31/1999#................ 12.83 (0.11) 1.51 1.40 -- (2.84)
Year ended 3/31/1998#................ 11.47 (0.10) 5.14 5.04 -- (3.68)
Year ended 3/31/1997#................ 13.31 (0.08) 1.63 1.55 -- (3.39)
Period ended 3/31/1996(a)............ 14.15 (0.02) 0.37 0.35 -- (1.19)
Year ended 11/30/1995................ 11.17 (0.03) 3.27 3.24 -- (0.26)
Year ended 11/30/1994................ 11.05 (0.01) 0.13 0.12 -- (0.00)(b)
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited)........................ $11.48 $(0.08) $0.12 $0.04 -- $(0.10)
Year ended 3/31/1999#................ 12.92 (0.11) 1.51 1.40 -- (2.84)
Year ended 3/31/1998#................ 11.50 (0.08) 5.18 5.10 -- (3.68)
Year ended 3/31/1997#................ 13.26 (0.01) 1.64 1.63 -- (3.39)
Period ended 3/31/1996(a)............ 14.09 0.00(b) 0.36 0.36 -- (1.19)
Year ended 11/30/1995................ 11.14 (0.03) 3.24 3.21 -- (0.26)
Year ended 11/30/1994................ 11.01 (0.02) 0.15 0.13 -- (0.00)(b)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than 0.01 per share.
(c) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(d) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 95
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.10) $12.05 0.83% $695,169 0.96%+(c) (0.34)%+ 29% 0.96%+(c)
(2.84) 12.05 14.99 737,620 0.96(c) (0.04) 39 0.96(c)
(3.69) 13.30 53.89 872,150 0.95(c)(d) 0.13 113 0.95(c)
(3.44) 11.70 11.88 533,168 0.96(d) 0.39 75 0.96
(1.21) 13.43 3.14 839,300 0.96+ 0.38+ 25 0.96+
(0.36) 14.24 30.96 867,361 0.98 0.71 80 0.98
(0.08) 11.23 2.14 717,914 0.90 0.85 56 0.91
$(0.10) $11.95 0.67% $ 49,072 1.21%+(c) (0.59)%+ 29% 1.21%+(c)
(2.84) 11.97 14.70 52,987 1.21(c) (0.29) 39 1.21(c)
(3.68) 13.26 53.83 43,380 1.20(c)(d) (0.12) 113 1.20(c)
(3.41) 11.67 11.58 20,465 1.21(d) 0.14 75 1.21
(1.20) 13.41 3.02 18,311 1.21+ 0.13+ 25 1.21+
(0.33) 14.22 30.70 16,770 1.23 0.46 80 1.23
(0.06) 11.21 1.93 11,038 1.15 0.60 56 1.16
$(0.10) $11.33 0.35% $ 63,864 1.96%+(c) (1.34)%+ 29% 1.96%+(c)
(2.84) 11.39 13.86 66,338 1.96(c) (1.04) 39 1.96(c)
(3.68) 12.83 52.52 59,496 1.95(c)(d) (0.87) 113 1.95(c)
(3.39) 11.47 10.68 41,933 1.96(d) (0.61) 75 1.96
(1.19) 13.31 2.77 41,045 1.96+ (0.62)+ 25 1.96+
(0.26) 14.15 29.80 40,868 1.98 (0.29) 80 1.98
(0.00)(b) 11.17 1.12 23,591 1.90 (0.15) 56 1.91
$(0.10) $11.42 0.34% $ 4,038 1.96%+(c) (1.34)%+ 29% 1.96%+(c)
(2.84) 11.48 13.76 3,862 1.96(c) (1.04) 39 1.96(c)
(3.68) 12.92 53.02 6,176 1.78(c)(d) (0.70) 113 1.78(c)
(3.39) 11.50 11.39 5,752 1.46(d) (0.11) 75 1.46
(1.19) 13.26 2.86 3,655 1.58+ (0.24)+ 25 1.58+
(0.26) 14.09 29.61 3,322 1.98 (0.29) 80 1.98
(0.00)(b) 11.14 1.22 2,394 1.90 (0.15) 56 1.91
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 96
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DISCIPLINED EQUITY
PRIMARY A SHARES
Six months ended 9/30/1999
(unaudited).................. $ 23.36 $ 0.02 $(0.65) $(0.63) -- $(0.88)
Year ended 3/31/1999........... 22.17 0.02 3.22 3.24 $(0.01)+++ (2.04)
Year ended 3/31/1998##......... 18.47 0.08 7.88 7.96 (0.03) (4.23)
Year ended 3/31/1997........... 17.19 0.14 2.79 2.93 (0.14) (1.51)
Period ended 3/31/1996(a)...... 17.06 0.05 0.35 0.40 (0.04) (0.23)
Year ended 11/30/1995.......... 13.08 0.10 3.96 4.06 (0.08) --
Period ended 11/30/1994*....... 13.31 0.01 (0.23)# (0.22) (0.01) --
Period ended 4/29/1994*........ 13.65 (0.05) 2.66 2.61 -- (2.95)
INVESTOR A SHARES
Six months ended 9/30/1999
(unaudited).................. $ 23.23 $(0.01) $(0.64) $(0.65) -- $(0.88)
Year ended 3/31/1999........... 22.09 (0.03) 3.21 3.18 -- (2.04)
Year ended 3/31/1998##......... 18.44 0.02 7.87 7.89 $(0.01) (4.23)
Year ended 3/31/1997........... 17.16 0.08 2.80 2.88 (0.09) (1.51)
Period ended 3/31/1996(a)...... 17.04 0.04 0.35 0.39 (0.04) (0.23)
Year ended 11/30/1995.......... 13.06 0.09 3.96 4.05 (0.07) --
Period ended 11/30/1994*....... 13.30 0.00(b) (0.23)# (0.23) (0.01) --
Period ended 4/29/1994*........ 14.94 (0.04) 1.35 1.31 -- (2.95)
INVESTOR B SHARES
Six months ended 9/30/1999
(unaudited).................. $ 22.47 $(0.10) $(0.61) $(0.71) -- $(0.88)
Year ended 3/31/1999........... 21.57 (0.17) 3.11 2.94 -- (2.04)
Year ended 3/31/1998##......... 18.20 (0.12) 7.72 7.60 -- (4.23)
Year ended 3/31/1997........... 17.00 (0.05) 2.76 2.71 -- (1.51)
Period ended 3/31/1996(a)...... 16.89 (0.01) 0.35 0.34 -- (0.23)
Year ended 11/30/1995.......... 13.02 0.03 3.87 3.90 $(0.03) --
Period ended 11/30/1994**...... 12.77 (0.02) 0.28 0.26 (0.01) --
INVESTOR C SHARES
Six months ended 9/30/1999
(unaudited).................. $ 22.86 $(0.10) $(0.63) $(0.73) -- $(0.88)
Year ended 3/31/1999........... 21.92 (0.17) 3.15 2.98 -- (2.04)
Year ended 3/31/1998##......... 18.41 (0.09) 7.83 7.74 -- (4.23)
Year ended 3/31/1997........... 17.10 0.04 2.79 2.83 $(0.01) (1.51)
Period ended 3/31/1996(a)...... 16.97 0.01 0.35 0.36 -- (0.23)
Period ended 11/30/1995**...... 14.08 0.00(b) 2.92 2.92 (0.03) --
</TABLE>
- ---------------
* The period for the Disciplined Equity Primary A Shares and Investor A
Shares reflects operations from April 30, 1994 through November 30, 1994.
The financial information for the fiscal periods through April 29, 1994 is
based on the financial information for The Capitol Mutual Funds' Special
Equity Portfolio Class A Shares and Class B Shares, which were reorganized
into Primary A Shares and Investor A Shares of Nations Disciplined Equity
Fund (then named Nations Special Equity Fund) as of the close of business
on April 29, 1994.
** Disciplined Equity Investor B and Investor C Shares commenced operations on
May 20, 1994 and May 10, 1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
+++ Amount includes distributions in excess of net investment income of less
than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 97
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
RETURN OF AND END OF TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
CAPITAL DISTRIBUTIONS PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-- $(0.88) $21.85 (2.88)% $391,686 0.98%+(c)(d) 0.14%+ 37% 0.98%+(d)
-- (2.05) 23.36 15.74 412,176 0.97(c)(d) 0.12 72 0.97(d)
-- (4.26) 22.17 48.65 132,504 0.98(c)(d) 0.37 79 0.98(d)
-- (1.65) 18.47 17.00 100,260 1.04(c) 0.70 120 1.04
-- (0.27) 17.19 2.44 116,469 1.02+ 0.82+ 47 1.02+
-- (0.08) 17.06 31.13 109,939 1.30 0.85 124 1.30
$(0.00)(b) (0.01) 13.08 (1.62) 9,947 1.13+ 0.12+ 177 1.56+
-- (2.95) 13.31 18.79 8,079 1.20+ (0.60)+ 475 1.53+
-- $(0.88) $21.70 (2.98)% $ 59,621 1.23%+(c)(d) (0.11)%+ 37% 1.23%+(d)
-- (2.04) 23.23 15.49 67,356 1.22(c)(d) (0.13) 72 1.22(d)
-- (4.24) 22.09 48.28 21,725 1.23(c)(d) 0.12 79 1.23(d)
-- (1.60) 18.44 16.76 6,837 1.29(c) 0.45 120 1.29
-- (0.27) 17.16 2.35 4,722 1.12+ 0.72+ 47 1.12+
-- (0.07) 17.04 31.05 3,234 1.40 0.75 124 1.40
$(0.00)(b) (0.01) 13.06 (1.71) 252 1.23+ 0.02+ 177 1.66+
-- (2.95) 13.30 8.31 165 1.30+ (0.62)+ 475 1.74+
-- $(0.88) $20.88 (3.66)% $ 50,368 1.98%+(c)(d) (0.86)%+ 37% 1.98%+(d)
-- (2.04) 22.47 14.69 50,797 1.97(c)(d) (0.88) 72 1.97(d)
-- (4.23) 21.57 47.14 38,079 1.98(c)(d) (0.63) 79 1.98(d)
-- (1.51) 18.20 15.86 20,257 2.04(c) (0.30) 120 2.04
-- (0.23) 17.00 2.08 18,412 2.02+ (0.18)+ 47 2.02+
-- (0.03) 16.89 29.94 16,874 2.30 (0.15) 124 2.30
$(0.00)(b) (0.01) 13.02 2.02 177 2.09+ (0.84)+ 177 2.52+
-- $(0.88) $21.25 (3.39)% $ 1,736 1.98%+(c)(d) (0.86)%+ 37% 1.98%+(d)
-- (2.04) 22.86 14.64 1,629 1.97(c)(d) (0.88) 72 1.97(d)
-- (4.23) 21.92 47.38 1,199 1.81(c)(d) (0.46) 79 1.81(d)
-- (1.52) 18.41 16.45 446 1.54(c) 0.20 120 1.54
-- (0.23) 17.10 2.19 283 1.65+ 0.19+ 47 1.65+
-- (0.03) 16.97 20.78 322 2.30+ (0.15)+ 124 2.30+
</TABLE>
- ---------------
# The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of
the portfolio.
## Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than $0.01 per share.
(c) The effect of interest expense on the operating expense ratio was less than
0.01%.
(d) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 98
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FOCUSED EQUITIES
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited).................. $16.69 $(0.01) $0.55 $0.54 -- $(0.20)
Year ended 3/31/1999#.......... 12.13 (0.01) 4.58 4.57 -- (0.01)
Period ended 3/31/1998*#....... 10.00 (0.01) 2.14 2.13 -- --
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited).................. $16.73 $(0.03) $0.53 $0.50 -- $(0.20)
Year ended 3/31/1999#.......... 12.14 (0.04) 4.64 4.60 -- (0.01)
Period ended 3/31/1998*#....... 10.00 (0.01) 2.15 2.14 -- --
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited).................. $16.62 $(0.10) $0.55 $0.45 -- $(0.20)
Year ended 3/31/1999#.......... 12.13 (0.12) 4.62 4.50 -- (0.01)
Period ended 3/31/1998*#....... 10.00 (0.04) 2.17 2.13 -- --
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited).................. $16.67 $(0.10) $0.56 $0.46 -- $(0.20)
Year ended 3/31/1999#.......... 12.13 (0.14) 4.69 4.55 -- (0.01)
Period ended 3/31/1998*#....... 10.00 (0.04) 2.17 2.13 -- --
</TABLE>
- ---------------
* Shares commenced operations on December 31, 1997.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 99
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.20) $17.03 3.21% $157,548 1.04%+(a) (0.16)%+ 59% 1.04%+(a)
(0.01) 16.69 37.73 105,458 1.06(a) 0.05 177 1.06(a)
-- 12.13 21.30 8,808 1.52+(a) (0.30)+ 25 1.52+(a)
$(0.20) $17.03 2.96% $333,598 1.29%+(a) (0.41)%+ 59% 1.29%+(a)
(0.01) 16.73 37.94 238,137 1.31(a) (0.20) 177 1.31(a)
-- 12.14 21.40 6,056 1.77+(a) (0.55)+ 25 1.77+(a)
$(0.20) $16.87 2.68% $502,437 2.04%+(a) (0.84)%+ 59% 2.04%+(a)
(0.01) 16.62 37.15 306,365 2.06(a) (0.95) 177 2.06(a)
-- 12.13 21.30 20,446 2.52+(a) (1.30)+ 25 2.52+(a)
$(0.20) $16.93 2.73% $ 63,313 2.04%+(a) (0.84)%+ 59% 2.04%+(a)
(0.01) 16.67 37.56 13,682 2.06(a) (0.95) 177 2.06(a)
-- 12.13 21.30 469 2.52+(a) (1.30)+ 25 2.52+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 100
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS CAPITAL GAINS
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EMERGING GROWTH
PRIMARY A SHARES
Six months ended 9/30/1999# (unaudited)...... $13.31 $(0.04) $ 1.24 $ 1.20 $(0.18)
Year ended 3/31/1999#........................ 16.56 (0.04) (0.94) (0.98) (2.27)
Year ended 3/31/1998#........................ 12.86 (0.06) 5.55 5.49 (1.79)
Year ended 3/31/1997#........................ 14.04 (0.04) 0.20 0.16 (1.34)
Period ended 3/31/1996#(a)................... 14.28 0.00(b) 1.26 1.26 (1.50)
Year ended 11/30/1995........................ 11.41 0.01 3.26 3.27 (0.40)
Year ended 11/30/1994#....................... 10.87 (0.03) 0.71 0.68 (0.14)
INVESTOR A SHARES
Six months ended 9/30/1999# (unaudited)...... $13.04 $(0.05) $ 1.21 $ 1.16 $(0.18)
Year ended 3/31/1999#........................ 16.30 (0.07) (0.92) (0.99) (2.27)
Year ended 3/31/1998#........................ 12.69 (0.10) 5.50 5.40 (1.79)
Year ended 3/31/1997#........................ 13.91 (0.07) 0.19 0.12 (1.34)
Period ended 3/31/1996#(a)................... 14.17 (0.01) 1.25 1.24 (1.50)
Year ended 11/30/1995........................ 11.35 (0.01) 3.23 3.22 (0.40)
Year ended 11/30/1994#....................... 10.85 (0.06) 0.70 0.64 (0.14)
INVESTOR B SHARES
Six months ended 9/30/1999# (unaudited)...... $12.28 $(0.10) $ 1.14 $ 1.04 $(0.18)
Year ended 3/31/1999#........................ 15.58 (0.15) (0.88) (1.03) (2.27)
Year ended 3/31/1998#........................ 12.29 (0.20) 5.28 5.08 (1.79)
Year ended 3/31/1997#........................ 13.61 (0.18) 0.20 0.02 (1.34)
Period ended 3/31/1996#(a)................... 13.93 (0.05) 1.23 1.18 (1.50)
Year ended 11/30/1995........................ 11.24 (0.07) 3.16 3.09 (0.40)
Year ended 11/30/1994#....................... 10.82 (0.14) 0.70 0.56 (0.14)
INVESTOR C SHARES
Six months ended 9/30/1999# (unaudited)...... $12.33 $(0.10) $ 1.15 $ 1.05 $(0.18)
Year ended 3/31/1999#........................ 15.63 (0.15) (0.88) (1.03) (2.27)
Year ended 3/31/1998#........................ 12.31 (0.18) 5.29 5.11 (1.79)
Year ended 3/31/1997#........................ 13.56 (0.10) 0.19 0.09 (1.34)
Period ended 3/31/1996#(a)................... 13.87 (0.03) 1.22 1.19 (1.50)
Year ended 11/30/1995........................ 11.20 (0.08) 3.15 3.07 (0.40)
Year ended 11/30/1994#....................... 10.78 (0.14) 0.70 0.56 (0.14)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than 0.01 per share.
(c) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(d) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 101
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
RATIO OF REIMBURSEMENTS
OPERATING ---------------
RATIO OF EXPENSES TO RATIO OF RATIO OF
NET ASSETS OPERATING AVERAGE NET NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO ASSETS INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET INCLUDING AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS INTEREST EXPENSE ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$14.33 9.03% $178,147 1.03%+(c)(d) -- (0.50)%+ 16% 1.03%+(c)
13.31 (7.21) 177,861 0.98(c)(d) -- (0.29) 43 0.98(c)
16.56 45.09 318,584 0.98(c) 0.99% (0.42) 76 0.98(c)
12.86 0.48 267,319 0.98(c) -- (0.26) 93 0.98(c)
14.04 9.87 295,764 0.99+ -- (0.06)+ 39 0.99+
14.28 29.95 269,484 0.98 -- 0.08 139 0.98
11.41 6.26 182,459 1.01 -- (0.29) 129 1.01
$14.02 8.91% $ 11,754 1.28%+(c)(d) -- (0.75)%+ 16% 1.28%+(c)
13.04 (7.41) 18,042 1.23(c)(d) -- (0.54) 43 1.23(c)
16.30 44.86 21,591 1.23(c) -- (0.67) 76 1.23(c)
12.69 0.18 12,126 1.23(c) -- (0.51) 93 1.23(c)
13.91 9.80 7,802 1.24+ -- (0.31)+ 39 1.24+
14.17 29.65 5,765 1.23 -- (0.17) 139 1.23
11.35 5.90 3,234 1.26 -- (0.54) 129 1.26
$13.14 8.48% $ 32,138 2.03%+(c)(d) -- (1.50)%+ 16% 2.03%+(c)
12.28 (8.10) 33,245 1.98(c)(d) -- (1.29) 43 1.98(c)
15.58 43.64 45,451 1.98(c) 1.99% (1.42) 76 1.98(c)
12.29 (0.57) 33,342 1.98(c) -- (1.26) 93 1.98(c)
13.61 9.52 34,989 1.99+ -- (1.06)+ 39 1.99+
13.93 28.75 32,349 1.98 -- (0.92) 139 1.98
11.24 5.17 15,909 2.01 -- (1.29) 129 2.01
$13.20 8.52% $ 1,483 2.03%+(c)(d) -- (1.50)%+ 16% 2.03%+(c)
12.33 (8.08) 1,383 1.98(c)(d) -- (1.29) 43 1.98(c)
15.63 43.80 2,266 1.81(c) 1.82% (1.25) 76 1.81(c)
12.31 (0.04) 1,437 1.48(c) -- (0.76) 93 1.48(c)
13.56 9.64 936 1.61+ -- (0.68)+ 39 1.61+
13.87 28.67 805 1.98 -- (0.92) 139 1.98
11.20 5.19 542 2.01 -- (1.29) 129 2.01
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 102
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMALL COMPANY GROWTH
PRIMARY A SHARES
Six months ended 9/30/1999#
(unaudited)...................... $11.50 $(0.05) $ 2.12 $ 2.07 -- --
Year ended 3/31/1999#.............. 15.79 (0.05) (3.11) (3.16) -- $(1.13)
Period ended 3/31/1998*............ 12.07 0.01 4.43 4.44 $(0.01) (0.71)
Period ended 5/16/1997*............ 10.65 0.04 1.47 1.51 (0.04) (0.05)
Period ended 8/31/1996*(a)......... 10.00 0.09 0.64 0.73 (0.08) --
INVESTOR A SHARES
Six months ended 9/30/1999#
(unaudited)...................... $11.43 $(0.08) $ 2.10 $ 2.02 -- --
Year ended 3/31/1999#.............. 15.74 (0.07) (3.11) (3.18) -- $(1.13)
Period ended 3/31/1998*............ 12.05 (0.02) 4.42 4.40 -- (0.71)
Period ended 5/16/1997*............ 10.64 0.03 1.46 1.49 $(0.03) (0.05)
Period ended 8/31/96*(a)........... 10.00 0.05 0.64 0.69 (0.05) --
INVESTOR B SHARES
Six months ended 9/30/1999#
(unaudited)...................... $11.23 $(0.11) $ 2.09 $ 1.98 -- --
Year ended 3/31/1999#.............. 15.59 (0.11) (3.12) (3.23) -- $(1.13)
Period ended 3/31/1998*............ 12.03 (0.08) 4.35 4.27 -- (0.71)
Period ended 5/16/1997*............ 10.65 (0.03) 1.46 1.43 -- (0.05)
Period ended 8/31/1996*(a)......... 10.00 0.01 0.65 0.66 $(0.01) --
INVESTOR C SHARES
Six months ended 9/30/1999#
(unaudited)...................... $11.38 $(0.09) $ 2.08 $ 1.99 -- --
Year ended 3/31/1999#.............. 15.74 (0.12) (3.11) (3.23) -- $(1.13)
Period ended 3/31/1998**........... 15.18 (0.08) 1.35 1.27 -- (0.71)
</TABLE>
- ---------------
* The financial information for the fiscal periods prior to May 23, 1997
reflects the financial information for the Pilot Small Capitalization Equity
Fund's Pilot Shares, Class A Shares and Class B Shares, which were
reorganized into the Primary A Shares, Investor A Shares and Investor B
Shares, respectively, as of the close of business on May 23, 1997. Prior to
May 23, 1997, the investment manager to Small Company Growth was Boatmen's
Trust Company. Effective May 23, 1997, the investment manager to Small
Company Growth became TradeStreet Investment Associates, Inc.
** Small Company Growth's Investor C Shares commenced operations on September
22, 1997.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) Represents the period from December 12, 1995 (commencement of operations)
to August 31, 1996.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(c) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 103
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.11%+(b)
-- $13.57 18.00% $369,446 (c) (0.77)%+ 32% 1.21%+(b)
$(1.13) 11.50 (21.05) 327,981 0.95(b) (0.42) 87 1.22(b)
(0.72) 15.79 37.27 235,427 0.95+(b) 0.05+ 59 1.26+(b)
(0.09) 12.07 14.21 109,450 0.98+ 0.54+ 48 1.41+
(0.08) 10.65 7.37 70,483 1.00+ 1.06+ 31 1.54+
-- $13.45 17.78% $146,154 1.36%+(b)(c) (1.02)%+ 32% 1.46%+(b)
$(1.13) 11.43 (21.32) 16,143 1.20(b) (0.67) 87 1.47(b)
(0.71) 15.74 37.02 6,772 1.20+(b) (0.20)+ 59 1.51+(b)
(0.08) 12.05 13.98 3,697 1.23+ 0.30+ 48 1.66+
(0.05) 10.64 6.88 2,611 1.25+ 0.66+ 31 1.65+
-- $13.21 17.63% $ 6,621 2.11%+(b)(c) (1.77)%+ 32% 2.21%+(b)
$(1.13) 11.23 (21.86) 5,127 1.95(b) (1.42) 87 2.22(b)
(0.71) 15.59 36.06 3,384 1.87+(b) (0.87)+ 59 2.18+(b)
(0.05) 12.03 13.43 2,635 1.97+ (0.45)+ 48 2.41+
(0.01) 10.65 6.65 1,878 2.01+ (0.07)+ 31 2.44+
-- $13.37 17.59% $ 2,081 2.11%+(b)(c) (1.77)%+ 32% 2.21%+(b)
$(1.13) 11.38 (21.66) 1,951 1.70(b) (1.17) 87 2.22(b)
(0.71) 15.74 8.75 3,122 1.95+(b) (0.95)+ 59 2.26+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 104
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust"), Nations Fund, Inc. (the "Company") and Nations
Reserves ("Reserves") are each registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company. At
September 30, 1999, the Trust offered thirty-six separate portfolios, the
Company offered seven separate portfolios and Reserves offered sixteen separate
portfolios. These financial statements pertain only to certain domestic stock
portfolios of the Trust, the Company and Reserves (each a "Fund" and
collectively, the "Funds"). Financial statements for the other portfolios of the
Trust, the Company and Reserves are presented under separate cover. The Funds
(except Equity Index Fund) currently offer four classes of shares: Primary A
Shares, Investor A Shares, Investor B Shares and Investor C Shares. Equity Index
Fund currently offers Primary A Shares and Investor A Shares. In addition, Asset
Allocation Fund and Blue Chip Fund also offer Seafirst Shares. 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 that class and separate voting rights on matters
in which the interests of one class differ from the interests of any other
class.
The Blue Chip Fund seeks to achieve its investment objective by investing
substantially all of its assets in the Blue Chip Master Portfolio, a series of
Nations Master Investment Trust (the "Master Trust"), another open-end
investment company in the Nations Funds family. The Master Portfolio has the
same investment objective as the Blue Chip Fund. The value of the Blue Chip
Fund's investment in the Blue Chip Master Portfolio included in the Statements
of net assets reflects the Blue Chip Fund's proportionate beneficial interest in
the net assets of the Blue Chip Master Portfolio (93.8% at September 30, 1999).
The financial statements of the Blue Chip Master Portfolio, including its
portfolio of investments, are included elsewhere within this report and should
be read in conjunction with the Blue Chip Fund's financial statements. Another
fund not registered under the 1940 Act offered by the Nations Offshore Funds and
managed by Banc of America Advisors, Inc. ("BAAI"), whose financial statements
are not presented here, also invests in the Blue Chip Master Portfolio.
Effective August 20, 1999, the Marsico Growth & Income Fund and Marsico Focused
Equities Fund converted to a master-feeder structure. The Funds seek to achieve
their investment objectives by investing substantially all of their assets in
corresponding Master Portfolios of the Master Trust which have the same
investment objective as each Fund. Because the value of each Fund's investment
in the corresponding Master Portfolio at September 30, 1999 represented
substantially all of the beneficial interests in the Master Portfolio, financial
statements of the Master Portfolios have not been prepared and references in
this report to Marsico Growth & Income Fund and Marsico Focused Equities Fund
should be read to include references to the corresponding Master Portfolio.
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: Securities which are traded on a recognized exchange or
on NASDAQ are valued at the last sales price on the exchange or market on which
such securities are primarily traded. Securities traded only over-the-counter
are valued at the closing bid prices or, if no sale occurred on such day, at the
mean of the current bid and asked prices. Restricted securities, securities for
which market quotations are not readily available, and certain other assets are
valued by the investment advisor under the supervision of the Board of
Trustees/Directors. Short-term investments that mature in 60 days or less are
valued at amortized cost.
The valuation of the Blue Chip Fund's investment in the Blue Chip Master
Portfolio of the Master Trust is based on the reported net asset value of that
Portfolio. The Master Portfolio uses valuation policies consistent with those
described above.
Futures contracts: The Value, Equity Income, Equity Index and Blue Chip Funds
may invest in futures contracts. Upon entering into a futures contract, the Fund
is required to deposit with the broker an amount of cash or cash equivalents
equal to a specified percentage of the contract amount. This is known as the
"initial margin." Subsequent payments ("variation margin") are made or received
by the Fund each day, depending on the daily fluctuation of the value of the
contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gains or losses by "marking-to-market" on
a daily basis
100
<PAGE> 105
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
to reflect the market value of the contract. The Fund recognizes a realized gain
or loss when the contract is closed, equal to the difference between the
proceeds from (or cost of) the closing transaction and the Fund's basis in the
contract.
Risks of investments in futures contracts include the possible movement of the
securities or indices underlying the contracts, the possibility that there may
not be a liquid secondary market for the contracts, that a change in the value
of the contract may not correlate with changes in the value of the underlying
securities, or that the counterparty to a contract may default on its obligation
to perform.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on 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.
The Blue Chip Fund records its share of the investment income and realized and
unrealized gains and losses reported by the Blue Chip Master Portfolio on a
daily basis. The investment income and realized and unrealized gains and losses
are allocated daily to interest holders in the Blue Chip Master Portfolio based
upon the value of the Blue Chip Fund's investment in the Blue Chip Master
Portfolio.
Dividends and distributions to shareholders: Distributions from net investment
income are declared and paid each calendar quarter by the Capital Income,
Balanced Assets, Asset Allocation, Equity Index, Growth & Income, Blue Chip,
Focused Equities and Emerging Growth Funds; all other Funds declare and pay
distributions monthly. Each Fund will distribute net realized capital gains
(including net short-term capital gains) at least annually after the fiscal year
in which the capital gains were earned, unless offset by any available capital
loss carryforward. 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.
Federal income tax: Each Fund intends to continue to qualify as a regulated
investment company by complying with the applicable requirements of the Internal
Revenue Code of 1986, as amended, and by distributing substantially all of its
earnings to its shareholders. Therefore, no provision is made for Federal income
or excise taxes.
Expenses: General expenses of the Trust, the Company and Reserves are allocated
to the Funds based upon relative net assets or other expense allocation
methodologies determined by the nature of the expense in accordance with
generally accepted accounting principles. Expenses directly attributable to a
Fund or class of shares are charged to such Fund or class. The Blue Chip Fund
records its share of the expenses reported by the Blue Chip Master Portfolio on
a daily basis. The expenses are allocated daily to interest holders in the Blue
Chip Master Portfolio based upon the value of the Blue Chip Fund's investment in
the Blue Chip Master Portfolio.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Each of the Trust, the Company and Reserves has entered into an investment
advisory agreement (the "Investment Advisory Agreements") with BAAI (formerly
known as NationsBanc Advisors, Inc.), a wholly-owned subsidiary of Bank of
America, N.A., ("Bank of America") (formerly known as NationsBank, N.A.), which
in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a
bank holding company organized as a Delaware corporation. Pursuant to the
Investment Advisory Agreement, BAAI provides investment advisory services to the
Funds and is entitled to receive an advisory fee, calculated daily on the Funds'
average daily net assets, and payable monthly. Effective May 14, 1999, the
maximum annual advisory fee payable by the Funds decreased by 0.10% of the
Funds' average daily net assets. The table below shows the change in the maximum
annual rate:
<TABLE>
<CAPTION>
RATE IN EFFECT
CURRENT THROUGH
RATE MAY 13, 1999
-------------------------
<S> <C> <C>
Small Company Growth............ 0.90% 1.00%
Growth & Income,
Focused Equities................ 0.75% 0.85%
Capital Income, Balanced Assets,
Asset Allocation, Value,
Strategic Equity, Capital
Growth, Disciplined Equity,
Emerging Growth............... 0.65% 0.75%
Equity Index.................... 0.40% 0.50%
</TABLE>
101
<PAGE> 106
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
FEES ON NET FEES ON NET
FEES ON NET ASSETS BETWEEN ASSETS
ASSETS UP TO $100 AND UP TO EXCEEDING
EQUITY INCOME $100 MILLION $250 MILLION $250 MILLION
- --------------------------------------------------------------------
<S> <C> <C> <C>
Current rate
effective May 14,
1999............... 0.65% 0.60% 0.50%
Rate in effect
through
May 13, 1999......... 0.75% 0.70% 0.60%
</TABLE>
Blue Chip Fund indirectly pays for investment advisory services through its
investment in its corresponding Master Trust Portfolio (See Note 2 of Notes to
financial statements of the Master Trust Portfolios).
Each of the Trust, the Company and Reserves has entered into a sub-advisory
agreement with BAAI and TradeStreet Investment Associates, Inc. ("TradeStreet"),
a wholly-owned subsidiary of Bank of America, pursuant to which TradeStreet is
entitled to receive a sub-advisory fee from BAAI at the following maximum annual
rate of each Fund's average daily net assets:
<TABLE>
<CAPTION>
ANNUAL
RATE
------
<S> <C>
Capital Income, Balanced Assets, Value,
Capital Growth, Disciplined Equity, Emerging
Growth, Small Company Growth................ 0.25%
Equity Income................................. 0.20%
Equity Index.................................. 0.10%
</TABLE>
Reserves has, on behalf of the Asset Allocation Fund, entered into a
sub-advisory agreement with BAAI and TradeStreet pursuant to which TradeStreet
is entitled to receive a sub-advisory fee from BAAI for management of the fixed
income and money market portions of the Fund at the annual rate of 0.25% of the
Fund's average daily net assets.
Reserves has, on behalf of the Asset Allocation Fund, entered into a
sub-advisory agreement with BAAI and Chicago Equity Partners Corporation
("Chicago Equity"), a wholly-owned subsidiary of Bank of America, pursuant to
which Chicago Equity Partners is entitled to receive a sub-advisory fee from
BAAI for management of the equity portion of the Fund at the annual rate of
0.25% of the Fund's average daily net assets.
The Trust has, on behalf of the Growth & Income and Focused Equities Funds,
entered into a sub-advisory agreement with Marsico Capital Management, LLC
("Marsico"), pursuant to which Marsico is entitled to receive a sub-advisory fee
from BAAI at the annual rate of 0.45% of each Fund's average daily net assets.
Marsico Management Holdings, LLC, a wholly-owned subsidiary of Bank of America,
owns 50% of the equity of Marsico.
The Trust has, on behalf of the Strategic Equity Fund, entered into a
sub-advisory agreement with BAAI and Bank of America through its division, Bank
of America Investment Management, pursuant to which Bank of America is entitled
to receive a sub-advisory fee from BAAI at the annual rate of 0.25% of the
Fund's average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust, the
Company and Reserves. Under the co-administration agreements, Stephens and BAAI
are entitled to receive a combined fee, computed daily and paid monthly, at the
maximum annual rate of 0.23% of the average daily net assets of all Funds except
for Blue Chip Fund, which pays a monthly fee at the maximum annual rate of 0.18%
of its average daily net assets. Effective May 14, 1999, the combined co-
administration fee payable by the Funds (except Asset Allocation and Blue Chip
Fund) to Stephens and BAAI increased by 0.10% of the Fund's average daily net
assets. Prior to that date, the combined co-administration fee payable by the
Funds (except Blue Chip Fund) was 0.13% of the average daily net assets. The
Bank of New York ("BNY") serves as sub-administrator of the Trust, the Company
and Reserves pursuant to an agreement with BAAI. For the six months ended
September 30, 1999, Stephens and BAAI earned $2,720,002 and $3,729,913,
respectively, from the Funds (except for Blue Chip Fund) for their
co-administration services.
BAAI and/or the sub-advisors and Stephens may, from time to time, reduce their
fees payable by each Fund. Effective August 1, 1999, BAAI and/or the
sub-advisors and Stephens agreed to reimburse expenses and/or waive fees until
May 2000 to the extent that total expenses (excluding shareholder servicing and
distribution fees), as a percentage of the respective Fund's average daily net
assets, exceed the following annual rates: 0.98% for the Capital Income Fund,
0.95% for the Asset Allocation Fund and 0.95% for the Blue Chip Fund. Effective
August 1, 1999, BAAI and/or the sub-advisors and Stephens agreed to reimburse
expenses and/or waive fees until July 31, 2000 to the extent that total expenses
(excluding shareholder servicing and distribution fees), as a percentage of the
respective Fund's average daily net assets, exceed the following annual rates:
0.35% for the Equity Index Fund and 1.15% for the Small Company Growth Fund.
Prior to that date, BAAI and/or the sub-advisors and Stephens had voluntarily
agreed to
102
<PAGE> 107
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
reimburse expenses and/or waive their fees to maintain these total expense
limits.
BNY serves as the custodian of the Trust's, the Company's and Reserves' assets.
For the six months ended September 30, 1999, expenses of the Funds were reduced
by $45,047 under expense offset arrangements with BNY. The Funds could have
invested a portion of the assets utilized in connection with the expense offset
arrangements in an income producing asset if they had not entered into such
arrangements.
First Data Investor Services Group, Inc., a wholly-owned subsidiary of First
Data Corporation, serves as the transfer agent for the Funds' shares. Bank of
America serves as the sub-transfer agent for the Primary Shares of the Funds.
For the six months ended September 30, 1999, Bank of America earned
approximately $28,803 for providing such services.
Stephens also serves as distributor of the Funds' shares. For the six months
ended September 30, 1999, the Funds were informed that the distributor received
$78,887,931 in front end sales charges for sales of Investor A Shares and
$1,698,747 in contingent deferred sales charges from redemption of shares which
were subject to such charges. A substantial portion of these fees is paid to
affiliates of Bank of America.
Effective July 1, 1999, the Boards of Trustees/Directors of the Trust, the
Company and Reserves, along with the Boards of Trustees/Directors of the other
open-end registered investment companies in the Nations Funds family, approved a
new compensation structure for the unaffiliated Trustees/Directors. The new
structure compensates the unaffiliated Trustees/Directors for their services to
the open-end registered investment companies in the Nations Funds family as a
whole, rather than to particular registered investment companies, or series or
portfolios thereof. As of September 30, 1999, open-end registered investment
companies in the Nations Funds family were the Trust, Nations Fund, Inc.,
Reserves, Nations Annuity Trust, Nations LifeGoal Funds, Inc. and the Master
Trust. Under the new structure, each unaffiliated Trustee/Director receives a
base retainer fee from the open-end investment companies in the amount of
$65,000 per year, in addition to $5,000 for each in-person meeting attended and
$1,000 for each telephonic meeting attended. Each unaffiliated Trustee/Director
will be compensated only for a maximum of six in-person meetings per calendar
year. The Chairman of the Board receives an additional fee of 20% of the base
retainer fee; the Chairman of the Audit Committee receives an additional fee of
10% of the base retainer fee. The members of the Nominating Committee receive
additional compensation at the rate of $1,000 per meeting attended. Each
unaffiliated Trustee/Director is also reimbursed for expenses incurred in
attending such meetings.
Prior to July 1, 1999, the Trust, the Company and Reserves each paid an
unaffiliated Trustee or Director an annual fee of $1,000 ($3,000 for the
Chairman of the Boards), 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, the Company and Reserves also reimbursed expenses incurred by each
unaffiliated Trustee in attending such meetings.
The Trust's, the Company's and Reserves' eligible Trustees/Directors, 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
portfolio of the Company. The expense for the deferred compensation and
retirement plans is included in "Trustees'/Directors' fees and expenses" in the
Statements of operations.
Certain Funds have made daily investments of cash balances in Nations Cash
Reserves, a portfolio of Reserves, pursuant to an exemptive order received from
the Securities and Exchange Commission. For the six months ended September 30,
1999, the Funds earned $3,040,842 in the aggregate from such investments, which
is included in interest income.
A significant portion of each Fund's Primary A Shares represents investments by
fiduciary accounts over which Bank of America has either sole or joint
investment discretion.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
The Trust, the Company and Reserves each have adopted shareholder servicing
plans and distribution plans for the Investor B and Investor C Shares of each
Fund, a distribution plan for Investor A Shares of each Fund and a shareholder
servicing plan for Seafirst Shares of Asset Allocation and Blue Chip Funds.
(Equity Index has no Investor B and Investor C Shares). The shareholder
servicing plans permit the Funds to compensate or reimburse servicing agents for
shareholder services
103
<PAGE> 108
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
provided by the servicing agents. The distribution plans, adopted pursuant to
Rule 12b-1 under the 1940 Act, permit the Funds to compensate or reimburse the
distributor (and for Investor A Shares, the distributor and/or selling agents)
for activities or expenses primarily intended to result in the sale of the
classes' shares. Payments are made at an annual rate, as a percentage of average
daily net assets set from time to time by the Board of Trustees/Directors, and
are charged as expenses of each Fund directly to the applicable class. A
substantial portion of the expenses incurred pursuant to these plans is paid to
affiliates of Bank of America and BAAI.
At September 30, 1999, the rates in effect and plan limits, as a percentage of
average daily net assets, were as follows:
<TABLE>
<CAPTION>
CURRENT PLAN
RATE LIMIT
----------------
<S> <C> <C>
Investor A Combined Shareholder
Servicing and Distribution Plan.... 0.25% 0.25%
Investor B Distribution Plan......... 0.75% 0.75%
Investor C Distribution Plan......... 0.75% 0.75%
Investor B and Investor C Shareholder
Servicing Plans.................... 0.25% 0.25%
Seafirst Shareholder Servicing
Plan............................... 0.00%* 0.25%
</TABLE>
- ---------------
* No fees are currently charged to the Seafirst Shares.
4. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government securities and short-term investments, for the six
months ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
---------------------
<S> <C> <C>
Capital Income.................. $ 64,497 $ 94,165
Balanced Assets................. 37,845 45,406
Asset Allocation................ 137,916 56,799
Value........................... 699,248 937,545
Equity Income................... 93,018 175,130
Equity Index.................... 70,484 24,626
Growth & Income................. 233,199 141,846
Strategic Equity................ 183,745 72,343
Capital Growth.................. 245,036 291,179
Disciplined Equity.............. 198,730 223,034
Focused Equities................ 874,018 490,685
Emerging Growth................. 35,263 60,944
Small Company Growth............ 245,820 152,968
</TABLE>
The aggregate cost of purchases and proceeds from sales of long-term U.S.
government securities for the six months ended September 30, 1999 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
---------------------
<S> <C> <C>
Balanced Assets................. $ 10,580 $ 21,964
Asset Allocation................ 73,055 44,807
Growth & Income................. -- 2,535
</TABLE>
5. FUTURES CONTRACTS
At September 30, 1999, the following Funds had futures contracts open:
<TABLE>
<CAPTION>
VALUE OF MARKET
CONTRACT VALUE OF UNREALIZED
NUMBER OF WHEN OPENED CONTRACTS (DEPRECIATION)
DESCRIPTION CONTRACTS (000) (000) (000)
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQUITY INCOME:
S&P 500 Futures (long
position) expiring
December 1999(a)..... 35 $11,903 $11,359 $(544)
EQUITY INDEX:
S&P 500 Futures (long
position) expiring
December 1999(a)... 36 12,175 11,684 (491)
</TABLE>
- ---------------
(a) Securities have been segregated as collateral for the Equity Income and
Equity Index Funds for open futures contracts.
6. SHARES OF BENEFICIAL INTEREST/CAPITAL STOCK
As of September 30, 1999, an unlimited number of shares of beneficial interest
without par value were authorized for each of the Trust and Reserves and
480,000,000,000 shares of $.001 par value capital stock were authorized for the
Company. The Trust's and Reserves' Declarations of Trust and the Company's
Articles of Incorporation authorize the Board of Trustees/ Directors to classify
or reclassify any authorized, but unissued shares into one or more additional
classes or series of shares. See Schedules of capital stock activity.
7. LINE OF CREDIT
The Trust, the Company and Reserves each participate in an uncommitted line of
credit provided by BNY under a line of credit agreement (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. Interest on borrowings is
payable at a specified Federal Funds rate plus 0.50% on an annualized basis.
Each participating Fund maintains a ratio of no less than 4 to 1 of net assets
(not including
104
<PAGE> 109
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
amounts borrowed pursuant to the Agreement) to the aggregate amount of
indebtedness pursuant to the Agreement.
For the six months ended September 30, 1999, borrowings by the Funds under the
Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE AVERAGE
AMOUNT INTEREST
OUTSTANDING RATE
FUND (000) (000)
- ---------------------------------------------------------
<S> <C> <C>
Capital Income.................. $ 2 5.63%
Balanced Assets................. 120 5.24
Equity Income................... 43 5.45
Equity Index.................... 253 5.32
Blue Chip....................... 5 5.20
Disciplined Equity.............. 122 5.22
Emerging Growth................. 65 5.73
Small Company Growth............ 308 5.56
</TABLE>
The average amount outstanding was calculated based on daily balances in the
period.
8. SECURITIES LENDING
Under an agreement with BNY, the Funds can lend their portfolio securities to
approved brokers, dealers and other financial institutions. Loans are
collateralized by cash in an amount at least equal to the market value of the
securities loaned. The cash collateral received is invested in Nations Cash
Reserves, a portfolio of Reserves. A portion of the income generated by the
investment of the collateral, net of any rebates paid by BNY to borrowers, is
remitted to BNY as lending agent, and the remainder is paid to the Fund.
Generally, in the event of counterparty default, the Fund has the right to use
the collateral to offset losses incurred. There would be a potential loss to the
Fund in the event the Fund is delayed or prevented from exercising its right to
dispose of the collateral. The Fund bears the risk of loss with respect to the
investment of collateral.
At September 30, 1999, the following Funds had securities on loan:
<TABLE>
<CAPTION>
MARKET VALUE
OF LOANED MARKET VALUE
SECURITIES OF COLLATERAL
FUND (000) (000)
- ----------------------------------------------------------
<S> <C> <C>
Balanced Assets............ $ 3,682 $ 3,702
Value...................... 42,403 42,156
Equity Income.............. 5,669 5,890
Equity Index............... 22,765 23,452
Growth & Income............ 22,808 23,637
Capital Growth............. 40,289 40,849
Disciplined Equity......... 15,798 16,006
Focused Equities........... 46,226 47,034
Emerging Growth............ 49,677 52,188
Small Company Growth....... 71,216 73,209
</TABLE>
9. CAPITAL LOSS CARRYFORWARD
At March 31, 1999, Balanced Assets Fund had available for Federal income tax
purposes unused capital losses expiring March 31, 2007 of $2,592,560.
10. REORGANIZATIONS
ACQUISITION OF THE EMERALD FUNDS
On May 15, 1998, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets and certain liabilities of The Emerald Funds, also listed
below (each an "Acquired Fund"), in a tax-free reorganization in exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
the Acquired Fund's shareholders. The number and value of shares issued by the
Acquiring Fund are presented in the Schedules of capital stock activity. Net
assets and unrealized appreciation as of the reorganization date were as
follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balanced Assets Emerald Balanced
Fund $ 76,887 $ 121,047 $ 197,934 $ 8,904
Disciplined Equity Emerald Equity Fund 296,852 258,201 555,053 67,060
Small Company Growth Emerald Small
Capitalization Fund 153,088 313,094 466,182 20,046
Value Emerald Equity
Value Fund 26,394 2,570,167 2,596,561 4,855
</TABLE>
105
<PAGE> 110
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
CONVERSION OF COMMON TRUST FUNDS
On April 17 and April 29, 1998, certain Funds, as listed below (each an
"Acquiring Fund"), acquired the assets of certain common trust funds, managed by
NationsBank, N.A., also listed below (each an "Acquired Fund"), in a tax-free
exchange for shares of the Acquiring Fund. The number and value of shares issued
by the Acquiring Fund are presented in the Schedules of capital stock activity.
Net assets and unrealized appreciation as of the conversion date were as
follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER CONVERSION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
APRIL 17, 1998
Equity Income NationsBank
Common Trust
Equity Income
Fund $ 62,189 $1,085,070 $1,147,259 $13,366
Small Company Growth NationsBank
Common Trust
Special Equity
Fund 7,075 238,952 246,027 1,126
Value NationsBank
Common Trust
Long-Term
Equity Fund 120,426 2,484,751 2,605,177 61,907
APRIL 29, 1998
Disciplined Equity NationsBank
Common Trust
Growth Stock
Fund 47,340 201,122 248,462 3,636
Disciplined Equity NationsBank
Common Trust
Oklahoma
Growth Stock
Fund 4,245 248,463 252,708 282
</TABLE>
ACQUISITION OF THE PACIFIC HORIZON FUNDS
On May 14, 1999, the Small Company Growth Fund (the "Acquiring Fund"), acquired
the assets and liabilities of the Pacific Horizon Aggressive Growth Fund (the
"Acquired Fund"), in a tax-free reorganization in exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Fund's shareholders. The number and value of shares issued by the Acquiring Fund
are presented in the Schedules of capital stock activity. Net assets and
unrealized appreciation as of the reorganization date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS ACQUIRED FUND
TOTAL NET ASSETS OF TOTAL NET ASSETS OF OF ACQUIRING FUND UNREALIZED
ACQUIRED FUND ACQUIRING FUND AFTER ACQUISITION APPRECIATION
(000) (000) (000) (000)
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
$164,166
$366,213 $530,379 $12,433
</TABLE>
On May 21, 1999, the Capital Income Fund, Asset Allocation Fund and Blue Chip
Fund, newly established portfolios, acquired the assets and liabilities of the
Pacific Horizon Capital Income Fund, Pacific Horizon Asset Allocation Fund and
Pacific Horizon Blue Chip Fund, respectively, pursuant to a plan of
reorganization approved by its shareholders. The acquisition was accomplished by
a tax-free exchange of shares of Capital Income Fund, Asset Allocation Fund and
Blue Chip Fund in an amount equal to the outstanding shares of the Pacific
Horizon Capital Income Fund, Pacific Horizon Asset Allocation Fund and Pacific
Horizon Blue Chip Fund, respectively. The financial statements of the Capital
Income Fund, Asset Allocation Fund and Blue Chip Fund reflect the historical
financial results of the Pacific Horizon Capital Income Fund, Pacific Horizon
Asset Allocation Fund and Pacific Horizon Blue Chip Fund prior to the
reorganization.
106
<PAGE> 111
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS
- ---------------------------------------------------------------------
<S> <C>
Capital Income Nations Capital Income
A Shares Investor A Shares
B Shares Investor B Shares
K Shares Investor C Shares
Asset Allocation Nations Asset Allocation
A Shares Investor A Shares
B Shares Investor B Shares
K Shares Investor C Shares
SRF Shares Seafirst Shares
Blue Chip Nations Blue Chip
A Shares Investor A Shares
B Shares Investor B Shares
K Shares Investor C Shares
SRF Shares Seafirst Shares
</TABLE>
ACQUISITION OF THE TIME HORIZON FUNDS
On August 20, 1999, the Asset Allocation Fund (the "Acquiring Fund"), acquired
the assets and liabilities of the Time Horizon Funds, listed below (each an
"Acquired Fund"), in a tax-free reorganization in exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Funds' shareholders. The number and value of shares issued by the Acquiring Fund
are presented in the Schedule of capital stock activity. Net assets and
unrealized appreciation as of the reorganization date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Time Horizon
Portfolio I $32,506 $293,022 $325,528 $1,890
Asset Allocation Time Horizon
Portfolio II 43,414 293,022 336,436 3,206
Asset Allocation Time Horizon
Portfolio III 50,392 293,022 343,414 5,511
</TABLE>
CHANGE OF REGISTERED INVESTMENT COMPANY
On August 20, 1999, the Marsico Focused Equities and Growth & Income Funds,
newly established shell portfolios of Reserves (the "Successor Funds"), acquired
the assets and liabilities of their predecessor funds, which were series of
Nations Fund Trust, pursuant to a plan of reorganization approved by each
predecessor fund's shareholders. The predecessor funds had the same name,
investment objective and principal investment strategies as the Successor Funds.
The acquisition was accomplished by a tax-free exchange of shares of the
Successor Funds in an amount equal to the value of the outstanding shares of the
predecessor funds. The financial statements of the Successor Funds reflect the
historical financial results of the predecessor funds prior to the
reorganizations.
107
<PAGE> 112
NATIONS MASTER INVESTMENT TRUST
Nations Blue Chip Portfolio
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.7%
AEROSPACE AND DEFENSE -- 0.7%
1,600 B.F. Goodrich Company.................. $ 46
123,500 Rockwell International Corporation..... 6,484
--------
6,530
--------
APPAREL AND TEXTILES -- 0.3%
84,400 Tommy Hilfiger Corporation++........... 2,379
--------
AUTOMOBILE PARTS MANUFACTURERS -- 0.1%
57,382 Delphi Automotive Systems
Corporation.......................... 922
--------
AUTOMOBILES AND TRUCKS -- 1.3%
134,600 Ford Motor Company..................... 6,755
86,300 General Motors Corporation............. 5,432
--------
12,187
--------
BANKING -- 5.6%
245,700 Chase Manhattan Corporation............ 18,519
298,300 Fleet Financial Group, Inc............. 10,925
50,800 J.P. Morgan & Company Inc. ............ 5,804
178,600 Mellon Bank Corporation................ 6,028
240,800 Wells Fargo Company.................... 9,542
--------
50,818
--------
BEVERAGES -- 2.1%
139,700 Anheuser-Busch Companies, Inc. ........ 9,787
83,800 Coca-Cola Company...................... 4,028
186,500 PepsiCo, Inc........................... 5,642
--------
19,457
--------
CHEMICALS -- BASIC -- 1.1%
56,400 Dow Chemical Company................... 6,408
71,300 Union Carbide Corporation.............. 4,051
--------
10,459
--------
CHEMICALS -- DIVERSIFIED -- 0.2%
94,600 Solutia Inc. .......................... 1,691
--------
COMPUTER RELATED -- 6.4%
272,500 Dell Computer Corporation++............ 11,394
218,600 EMC Corporation++...................... 15,616
67,500 Hewlett-Packard Company................ 6,210
152,900 International Business Machines
Corporation.......................... 18,559
143,300 Unisys Corporation++................... 6,466
--------
58,245
--------
COMPUTER SOFTWARE -- 6.9%
98,000 BMC Software, Inc.++................... 7,013
102,800 Compuware Corporation++................ 2,679
527,500 Microsoft Corporation++/++/............ 47,772
116,600 Oracle Systems Corporation++........... 5,305
--------
62,769
--------
CONGLOMERATE -- 3.6%
79,400 AlliedSignal, Inc. .................... 4,759
174,600 Tyco International Ltd................. 18,028
164,300 United Technologies Corporation........ 9,745
--------
32,532
--------
CONSTRUCTION -- 0.3%
89,300 Centex Corporation..................... 2,640
--------
CONTAINERS AND PACKAGING -- 0.4%
76,500 Avery-Dennison Corporation............. 4,035
--------
COSMETICS AND TOILETRIES -- 2.7%
64,500 Avon Products, Inc..................... 1,600
88,300 Colgate-Palmolive Company.............. 4,040
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
COSMETICS AND TOILETRIES -- (CONTINUED)
105,500 Kimberly-Clark Corporation............. $ 5,539
143,600 Procter & Gamble Company............... 13,462
--------
24,641
--------
DRUGS -- 7.1%
137,500 Amgen Inc.++........................... 11,206
92,300 Biogen, Inc.++......................... 7,274
243,600 Bristol-Myers Squibb Company........... 16,443
87,500 Merck & Company, Inc................... 5,671
151,000 Pfizer Inc. ........................... 5,427
309,200 Schering-Plough Corporation............ 13,489
77,800 Warner-Lambert Company................. 5,164
--------
64,674
--------
ELECTRIC POWER -- 2.0%
157,600 Edison International................... 3,832
86,300 FPL Group Inc.......................... 4,347
157,400 PECO Energy Company.................... 5,903
117,200 Unicom Corporation..................... 4,329
--------
18,411
--------
ELECTRONICS -- 1.3%
102,600 Applied Materials Inc.++............... 7,971
54,700 Solectron Corporation++................ 3,928
--------
11,899
--------
FINANCIAL SERVICES -- 6.5%
114,900 AXA Financial, Inc..................... 6,413
479,800 Citigroup Inc. ........................ 21,111
117,800 Freddie Mac............................ 6,126
77,400 Lehman Brothers Holdings Inc........... 4,513
122,800 Morgan Stanley Dean Witter & Company... 10,952
134,100 Providian Financial Corporation........ 10,619
--------
59,734
--------
FOOD PRODUCERS -- 1.3%
192,400 ConAgra Inc............................ 4,341
120,600 Quaker Oats Company.................... 7,462
--------
11,803
--------
FOREST AND PAPER PRODUCTS -- 0.7%
96,000 Georgia-Pacific Corporation............ 3,888
46,000 Weyerhaeuser Company................... 2,651
--------
6,539
--------
INSURANCE -- 1.6%
201,800 Conseco Inc. .......................... 3,897
160,000 Hartford Financial Services Group,
Inc. ................................ 6,540
97,000 Lincoln National Corporation Ltd. ..... 3,644
18,600 MGIC Investment Corporation............ 888
--------
14,969
--------
INTERNET -- 0.9%
80,500 America Online Inc.++.................. 8,372
--------
MACHINERY AND EQUIPMENT -- 0.9%
40,200 Illinois Tool Works, Inc. ............. 2,997
87,800 Ingersoll-Rand Company................. 4,824
--------
7,821
--------
MANUFACTURING -- 3.2%
249,600 General Electric Company/++/........... 29,593
--------
MEDIA -- 3.2%
114,800 CBS Corporation++...................... 5,310
59,300 King World Productions, Inc.++......... 2,224
41,500 Omnicom Group.......................... 3,286
</TABLE>
108
<PAGE> 113
NATIONS MASTER INVESTMENT TRUST
Nations Blue Chip Portfolio
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
MEDIA -- (CONTINUED)
186,800 Time Warner Inc. ...................... $ 11,347
172,700 Viacom Inc., Class B++................. 7,297
--------
29,464
--------
MEDICAL PRODUCTS AND SUPPLIES -- 3.3%
64,800 Allergan, Inc. ........................ 7,128
69,800 Baxter International Inc. ............. 4,205
60,000 Cardinal Health, Inc. ................. 3,270
167,900 Johnson & Johnson...................... 15,426
--------
30,029
--------
MEDICAL SERVICES -- 0.5%
101,400 United Healthcare Corporation.......... 4,937
--------
METALS AND MINING -- 0.4%
52,500 Alcoa Inc. ............................ 3,258
--------
NETWORKING EQUIPMENT AND PRODUCTS -- 2.3%
306,050 Cisco Systems, Inc.++.................. 20,984
--------
OFFICE EQUIPMENT -- 0.3%
38,000 Lexmark International Group, Inc.,
Class A++............................ 3,059
--------
OIL -- DOMESTIC -- 0.3%
106,300 USX-Marathon Group Inc. ............... 3,109
--------
OIL -- INTERNATIONAL -- 5.5%
110,700 Apache Corporation..................... 4,781
132,600 Chevron Corporation.................... 11,768
27,400 Exxon Corporation...................... 2,081
119,800 Mobil Corporation...................... 12,070
327,700 Royal Dutch Petroleum Company.......... 19,354
--------
50,054
--------
OIL FIELD SERVICES & EQUIPMENT -- 0.4%
106,300 Transocean Offshore, Inc. ............. 3,255
--------
PRINTING AND PUBLISHING -- 0.8%
94,600 McGraw-Hill Companies, Inc. ........... 4,576
69,700 New York Times Company, Class A........ 2,614
--------
7,190
--------
RECREATION -- 0.6%
279,800 Mattel, Inc. .......................... 5,316
--------
RESTAURANTS AND LODGING -- 0.5%
105,600 Tricon Global Restaurants Inc.++....... 4,323
--------
RETAIL - FOOD -- 1.1%
61,600 Albertson's Inc. ...................... 2,437
130,200 Safeway, Inc.++........................ 4,956
87,500 SYSCO Corporation...................... 3,068
--------
10,461
--------
RETAIL -- GENERAL -- 3.0%
159,900 Federated Department Stores, Inc.++.... 6,986
427,700 Wal-Mart Stores, Inc. ................. 20,342
--------
27,328
--------
RETAIL -- SPECIALTY -- 2.2%
20,000 Best Buy Company, Inc.++............... 1,241
189,800 Gap Inc. .............................. 6,074
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
- -------------------------------------------------------------
<C> <S> <C>
RETAIL -- SPECIALTY -- (CONTINUED)
117,900 Home Depot Inc. ....................... $ 8,091
173,200 TJX Companies Inc. .................... 4,860
--------
20,266
--------
SEMICONDUCTORS -- 2.8%
190,300 Intel Corporation...................... 14,142
137,000 Texas Instruments Inc. ................ 11,268
--------
25,410
--------
STEEL -- 0.4%
70,400 Nucor Corporation...................... 3,353
--------
TELECOMMUNICATIONS -- 3.5%
225,400 Lucent Technologies, Inc. ............. 14,624
70,000 Motorola, Inc. ........................ 6,160
31,600 QUALCOMM Inc.++........................ 5,978
85,400 Tellabs, Inc.++........................ 4,862
--------
31,624
--------
TOBACCO -- 0.9%
231,600 Philip Morris Companies Inc. .......... 7,918
--------
TRANSPORTATION -- 0.8%
78,500 Delta Air Lines, Inc. ................. 3,807
72,200 Union Pacific Corporation.............. 3,470
--------
7,277
--------
UTILITIES -- NATURAL GAS -- 0.6%
142,400 Coastal Corporation.................... 5,830
--------
UTILITIES -- TELEPHONE -- 8.1%
155,700 Ameritech Corporation.................. 10,461
265,150 AT&T Corporation....................... 11,534
111,842 Bell Atlantic Corporation.............. 7,528
373,400 BellSouth Corporation.................. 16,803
136,300 GTE Corporation........................ 10,478
235,800 MCI Worldcom, Inc.++................... 16,949
--------
73,753
--------
TOTAL COMMON STOCKS
(Cost $714,430)...................... 901,318
--------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
- ---------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 0.1%
(Cost $1,016)
U.S. TREASURY BILLS -- 0.1%
$ 1,022 4.815%** 11/18/99...................... 1,016
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.0%
(Cost $9,537)
9,537 Nations Cash Reserves#................... 9,537
-------
</TABLE>
109
<PAGE> 114
NATIONS MASTER INVESTMENT TRUST
Nations Blue Chip Portfolio
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- -----------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $724,983*)............. 99.8% $911,871
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 0.2%
Cash.................................. $ 915
Receivable for investment securities
sold................................ 9,420
Dividends receivable.................. 1,094
Interest receivable................... 39
Investment advisory fee payable....... (512)
Administration fee payable............ (39)
Payable for investment securities
purchased........................... (8,699)
Accrued expenses and other
liabilities......................... (40)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... 2,178
--------
NET ASSETS..................... 100.0% $914,049
========
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $226,713 and gross
depreciation of $39,825 for Federal income tax purposes. At September 30,
1999, the aggregate cost of securities for Federal income tax purposes was
$724,983.
** Rate represents annualized yield at date of purchase.
++ Non-income producing security.
/++/ A portion of the security is segregated as collateral for futures
contracts.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by TradeStreet Investment Associates,
Inc.
110
<PAGE> 115
NATIONS MASTER INVESTMENT TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
For the period ended September 30, 1999
<TABLE>
<CAPTION>
BLUE CHIP PORTFOLIO
--------------------------------
FOR THE PERIOD
MAY 15, 1999 FOR THE PERIOD
TO MARCH 1, 1999
SEPTEMBER 30, TO
1999 MAY 14,
(UNAUDITED) 1999(a)
--------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $0 and $0,
respectively)............................................. $ 3,914 $ 2,312
Interest.................................................... 223 182
-------------- --------------
Total investment income................................. 4,137 2,494
-------------- --------------
EXPENSES:
Investment advisory fee..................................... 2,362 984
Administration fee.......................................... 173 98
Fund accounting fees and expenses........................... -- 58
Custodian fees.............................................. 46 21
Legal and audit fees........................................ 31 --
Directors' fees and expenses................................ 10 9
Interest expense............................................ --* --
Other....................................................... 12 37
-------------- --------------
Total expenses.......................................... 2,634 1,207
Fees waived by investment advisor and/or distributor........ -- --
Fees reduced by credits allowed by the custodian............ (3) --
-------------- --------------
Net expenses............................................ 2,631 1,207
-------------- --------------
NET INVESTMENT INCOME....................................... 1,506 1,287
-------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... 43,324 57,394
Change in unrealized appreciation/(depreciation) of :
Securities (Note 8)....................................... (79,598) 10,459
Futures contracts......................................... (197) --
-------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... (79,795) 10,459
-------------- --------------
Net realized and unrealized gain/(loss) on investments...... (36,471) 67,853
-------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ (34,965) $ 69,140
============== ==============
</TABLE>
- ---------------
(a) Represents financial information for the Pacific Horizon Blue Chip
Portfolio, which was reorganized into Nations Blue Chip Portfolio on May 21,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 116
NATIONS MASTER INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BLUE CHIP PORTFOLIO
---------------------------------------------------
PERIOD ENDED PERIOD
9/30/99 ENDED YEAR ENDED
(UNAUDITED) 5/14/99 2/28/99
---------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 1,506 $ 1,287 $ 7,024
Net realized gain/(loss) on investments..................... 43,324 57,394 64,380
Net change in unrealized appreciation/(depreciation) of
investments............................................... (79,795) 10,459 72,411
-------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ (34,965) 69,140 143,815
Contributions............................................... 64,801 45,223 268,651
Withdrawals................................................. (88,117) (49,779) (223,374)
-------------- -------------- --------------
Net increase/(decrease) in net assets....................... (58,281) 64,584 189,092
NET ASSETS:
Beginning of period......................................... 972,330 907,746 718,654
-------------- -------------- --------------
End of period............................................... $ 914,049 $ 972,330 $ 907,746
============== ============== ==============
</TABLE>
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
OPERATING INVESTMENT OPERATING
EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO
TO AVERAGE TO AVERAGE TURNOVER AVERAGE
NET ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------
<S> <C> <C> <C> <C>
BLUE CHIP PORTFOLIO:
Period ended 9/30/1999 (unaudited).......................... 0.72%+(a) 0.47%+ 16% 0.72%+(a)
Period ended 5/14/1999...................................... 0.61+ 0.65+ 19 0.61
Year ended 2/28/1999........................................ 0.62 0.85 57 0.62
Year ended 2/28/1998........................................ 0.65 1.11 67 1.06
Year ended 2/28/1997........................................ 0.62 1.62 91 1.34
Year ended 2/29/1996........................................ 0.31 2.16 108 1.57
Year ended 2/28/1995........................................ 0.17 2.30 44 1.50
</TABLE>
- ---------------
+ Annualized
(a) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 117
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Master Investment Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. At September 30, 1999, the Trust offered five separate
series or Master Portfolios (each a "Master Portfolio" and collectively the
"Master Portfolios"). These financial statements pertain only to the Blue Chip
Master Portfolio (the "Portfolio"). Financial statements for the other
portfolios of the Trust are presented under separate cover.
The following shareholders were invested in the Portfolio at September 30, 1999:
<TABLE>
<S> <C>
Blue Chip Master Portfolio:
Nations Blue Chip Fund........................ 93.8%
Nations Blue Chip Fund (Offshore) (formerly
World Horizon U.S. Equity Fund)............. 6.2%
</TABLE>
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 Portfolios in the preparation of
its financial statements.
Securities valuation: Securities which are traded on a recognized exchange or
on NASDAQ are valued at the last sales price on the exchange or market on which
such securities are primarily traded. Securities traded only over-the-counter
are valued at the closing bid prices or, if no sale occurred on such day, at the
mean of the current bid and asked prices. Restricted securities, securities for
which market quotations are not readily available, and certain other assets are
valued by the investment advisor under the supervision of the Board of Trustees.
Short-term investments that mature in 60 days or less are valued at amortized
cost.
Futures contracts: The Portfolio may invest in futures contracts. Upon entering
into a futures contract, the Portfolio is required to deposit with the broker an
amount of cash or cash equivalents equal to a certain percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by the Portfolio each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gains or losses by "marking-to-market" on
a daily basis to reflect the market value of the contract. The Portfolio
recognizes a realized gain or loss when the contract is closed, equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Portfolio's basis in the contract.
Risks of investments in futures contracts include the possible movement of the
securities or indices underlying the contracts, the possibility that there may
not be a liquid secondary market for the contracts, that a change in the value
of the contract may not correlate with changes in the value of the underlying
securities, or that the counterparty to a contract may default on its obligation
to perform.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on ex-
dividend date.
Expenses: Expenses directly attributable to the Portfolio are charged to it,
while general Trust expenses are allocated among the respective portfolios of
the Trust.
Federal income taxes: The Portfolio is treated as a partnership for Federal
income tax purposes and therefore is not subject to Federal income tax. Each
interest holder in the Portfolio will be taxed on its share of the Portfolio's
ordinary income and capital gains. The Master Trust intends to conduct its
operations in such a way that each portfolio will be able to qualify as a
regulated investment company under the Internal Revenue Code of 1986, as
amended.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
The Trust has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI") (formerly
known as NationsBanc Advisors, Inc.), a wholly-owned subsidiary of Bank of
America, N.A. ("Bank of America") (formerly known as NationsBank, N.A.), which
in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a
bank holding company organized as a Delaware corporation, pursuant to which BAAI
provides investment advisory services to the Portfolio. Under the Investment
Advisory Agreement, BAAI is entitled to receive an advisory fee, calculated
113
<PAGE> 118
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
daily and payable monthly, at the maximum annual rate of 0.65% of the
Portfolio's average daily net assets.
The Trust has entered into a sub-advisory agreement with Chicago Equity Partners
Corporation ("Chicago Equity"), a wholly-owned subsidiary of Bank of America,
pursuant to which Chicago Equity is entitled to receive a sub-advisory fee from
BAAI at the annual rate of 0.25% of the Portfolio's average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust.
Under the co-administration agreements, Stephens and BAAI are entitled to
receive a combined fee, computed daily and paid monthly, at the maximum annual
rate of 0.05% of the Portfolio's average daily net assets. The Bank of New York
("BNY") serves as sub-administrator of the Trust pursuant to an agreement with
BAAI. For the six months ended September 30, 1999, BAAI earned $170,107 from the
Portfolio for its co-administration services.
BNY serves as the custodian of the Trust's assets. For the six months ended
September 30, 1999, expenses of the Portfolio were reduced by $2,885 under
expense offset arrangements with BNY. The Portfolio could have invested a
portion of the assets utilized in connection with the expense offset
arrangements in an income producing asset if they had not entered into such
arrangements.
Effective July 1, 1999, the Board of Trustees of the Trust, along with the
Boards of Trustees/Directors of the other open-end registered investment
companies in the Nations Funds family, approved a new compensation structure for
the unaffiliated Trustees/Directors. The new structure compensates the
unaffiliated Trustees/Directors for their services to the open-end registered
investment companies in the Nations Funds family as a whole, rather than to
particular registered investment companies, or series or portfolios thereof. As
of September 30, 1999, the open-end registered investment companies in the
Nations Funds family were the Nations Fund Trust, Nations Fund, Inc., Nations
Reserves, Nations Annuity Trust, Nations LifeGoal Funds, Inc. and the Trust.
Under the new structure, each unaffiliated Trustee/Director receives a base
retainer fee from the open-end registered investment companies in the amount of
$65,000 per year, in addition to $5,000 for each in-person meeting attended and
$1,000 for each telephonic meeting attended. Each unaffiliated Trustee/Director
will be compensated only for a maximum of six in-person meetings per calendar
year. The Chairman of the Board receives an additional fee of 20% of the base
retainer fee and the Chairman of the Audit Committee receives an additional fee
of 10% of the base retainer fee. The members of the Nominating Committee receive
additional compensation at the rate of $1,000 per meeting attended. Each
unaffiliated Trustee/ Director is also reimbursed for expenses incurred in
attending such meetings.
Prior to July 1, 1999, the Trust paid each unaffiliated Trustee an annual fee of
$1,000 ($3,000 for the Chairman of the Board), plus $500 per Portfolio and an
additional $1,000 for each in-person board meeting, and $500 for each telephonic
board meeting attended. The Trust also reimbursed expenses incurred by each
unaffiliated Trustee in attending such meetings.
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government securities and short-term investments, was $152,356
and $175,682, respectively, for the six months ended September 30, 1999.
4. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Board of Trustees to issue an
unlimited number of shares of beneficial interest and to establish and designate
such shares of beneficial interest into one or more Master Portfolios.
5. LINE OF CREDIT
The Trust participates in an uncommitted line of credit provided by BNY under a
line of credit agreement (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. Interest on borrowings is payable at the Federal Funds Rate plus
0.50% on an annualized basis. Each participating Portfolio maintains a ratio of
no less than 4 to 1 of net assets (not including funds borrowed pursuant to the
Agreement) to the aggregate amount of indebtedness pursuant to the Agreement.
At September 30, 1999, there were no loans outstanding under this Agreement. For
the six months ended September 30, 1999, borrowings by the Portfolio under the
Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
- ---- ----------- --------
<S> <C> <C>
Blue Chip Master Portfolio....... $5 5.20%
</TABLE>
114
<PAGE> 119
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The average amount outstanding was calculated based on daily balances in the
period.
6. REORGANIZATION OF MASTER INVESTMENT TRUST, SERIES I
On May 21, 1999, the Blue Chip Master Portfolio, a newly established portfolio,
acquired the assets and liabilities of the Blue Chip Master Portfolio ("Acquired
Portfolio"), a series of Master Investment Trust, Series I, pursuant to a plan
of reorganization approved by its interest holders. The acquisition was
accomplished by a tax-free exchange of interests of Blue Chip Master Portfolio
in an amount equal to the outstanding interests of the Acquired Portfolio. The
financial statements of the Blue Chip Master Portfolio reflect the historical
financial results of the Acquired Portfolio prior to the reorganization.
Additionally, the fiscal year end of the Blue Chip Master Portfolio for
financial reporting purposes was changed to coincide with that of the Trust.
115
<PAGE> 120
P.O. Box 34602
Charlotte, NC 28234-4602
Toll free 1.800.982.2271
Nations Funds
SAR1 991399 (9/99)
