Nations Fund Trust
Supplement dated February 9, 1999
to Prospectus dated August 1, 1998
as supplemented on January 19, 1999
The combined prospectus for the Investor A, Investor B and Investor C Shares of
Nations Tax-Exempt Bond Funds is hereby supplemented by deleting the table
under the heading "EXPENSES SUMMARY" for Nations Texas Intermediate Bond Fund
and Nations Texas Municipal Bond Fund and inserting in its place the following:
NATIONS FUNDS INVESTOR A SHARES
<TABLE>
<CAPTION>
Nations
Texas Intermediate Nations
Municipal Bond Texas Municipal
Shareholder Transaction Expenses Fund Bond Fund
<S> <C> <C>
Maximum Sales Load Imposed on Purchases (as a percentage of offering price) 3.25% 4.75%
- ----------------------------------------------------------------------------------------------------------------------
Maximum Deferred Sales Charge (as a percentage of the lower of the original
purchase price or redemption proceeds)(1) 1.00% 1.00%
- ----------------------------------------------------------------------------------------------------------------------
Redemption Fees Payable to the Fund None(2) None(2)
- ----------------------------------------------------------------------------------------------------------------------
Annual Fund Operating Expenses
(as a percentage of average net assets)
Management Fees (After Fee Waivers) .34% .20%
- ----------------------------------------------------------------------------------------------------------------------
Rule 12b-1 Fees (Including Shareholder Servicing Fees) (After Fee Waivers) .20% .20%
- ----------------------------------------------------------------------------------------------------------------------
Other Expenses (After Expense Reimbursements) .16% .40%
- ----------------------------------------------------------------------------------------------------------------------
Total Operating Expenses (After Fee Waivers and Expense Reimbursements) .70% .80%
</TABLE>
(1) Certain Investor A Shares that are purchased at net asset value are subject
to a Deferred Sales Charge if redeemed within two years of purchase. See
"Sales Charges."
(2) There is a 1% redemption fee retained by the Fund or Funds which is imposed
only on certain redemptions by investors investing $1 million or more
("Substantial Investors") in Investor A Shares held less than 18 months and
purchased between July 31, 1997 and November 15, 1998. See "How To Redeem
Shares -- Redemption Fee."
