<PAGE> 1
[GRAPHIC: ROWERS]
Nations
Tax Exempt Fund
Nations
Treasury Fund
Nations
Government Money
Market Fund
Nations Prime Fund
MONEY
MARKET 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 Tax Exempt Fund 3
- Nations Treasury Fund 18
- Nations Government Money Market Fund 20
- Nations Prime Fund 21
Statements of operations 25
Statements of changes in net assets 26
Statement of cash flows 28
Schedules of capital stock activity 29
Financial highlights 32
Notes to financial statements 40
</TABLE>
<TABLE>
<S> <C>
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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 Tax Exempt Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 100.1%
ALABAMA -- 1.9%
$ 8,265 Alabama Housing Finance Authority,
Multi-Family Housing Revenue
Refunding, (Rime Village
Apartments - Hoover Project) Series
1996A, (FNMA Collateral Agreement),
3.80% 06/15/26**#................... $ 8,265
10,775 Alabama Housing Finance Authority,
Multi-Family Housing Revenue
Refunding, (Rime Village
Apartments - Huntsville Project)
Series 1996B, (FNMA Collateral
Agreement),
3.80% 06/15/26**#................... 10,775
6,000 Alabama Housing Finance Authority,
Multi-Family Housing Revenue
Refunding, (Turtle Lake Apartments
Project) Series 1996F, (AmSouth Bank
of Alabama LOC),
3.85% 09/01/23**.................... 6,000
1,430 Birmingham, Alabama, Industrial
Development Board, IDR, (Avondale
Commerce - Phase III Project) Series
1991, (AmSouth Bank N.A. LOC),
4.10% 06/01/00**.................... 1,430
2,400 Gadsen, Alabama, Industrial
Development Board, IDR, (Keystone
Foods Corporation Project) Series
1989, AMT, (Bank of Scotland LOC),
3.95% 05/01/04**#................... 2,400
560 Homewood, Alabama, Industrial
Development Board, Revenue
Refunding, (Keebler Company Project)
Series 1993, (Bank of Nova Scotia
LOC),
3.85% 11/01/04**.................... 560
9,550 Mobile, Alabama, ASMS Public
Educational Building Authority,
Revenue, (Alabama High School Math
and Science Foundation Project)
Series 1997, (AmSouth Bank of
Alabama LOC),
3.85% 07/01/22**.................... 9,550
1,400 Northern Alabama Pollution Control
Environmental Improvement Authority,
PCR, (Reynolds Metals Company
Project) Series 1985, (Bank of Nova
Scotia LOC),
3.80% 12/01/00**.................... 1,400
2,000 Opelika, Alabama, Industrial
Development Board, Industrial
Revenue Refunding, (Flowers Baking
Company Project) Series 1995,
(SunTrust Bank LOC),
3.80% 12/01/99**#................... 2,000
--------
42,380
--------
ARIZONA -- 1.2%
17,200 Apache County, Arizona, Industrial
Development Authority, Revenue,
(Tucson Electric Power Company
Project) Series 1983B, (Bank of New
York LOC),
3.85% 12/15/18**.................... 17,200
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
ARIZONA -- (CONTINUED)
$ 5,100 Casa Grande, Arizona, Industrial
Development Authority, Revenue
Refunding, (Mayville Metal Products
Project) Series 1998, (Toronto
Dominion Bank LOC),
3.55% 07/01/15**#................... $ 5,100
3,900 Goodyear, Arizona, Industrial
Development Authority, IDR, (Walle
Corporation Project) Series 1995,
AMT, (Bank One Kentucky, N.A. LOC),
3.95% 05/01/15**#................... 3,900
--------
26,200
--------
ARKANSAS -- 0.6%
5,000 Crossett, Arkansas, PCR Refunding,
(Georgia-Pacific Corporation
Project) Series 1998, (SunTrust Bank
LOC),
3.75% 08/01/04**#................... 5,000
6,300 Little Rock, Arkansas, Metrocentre
District Number 1, Improvement
Revenue, (Little Rock Newspapers,
Inc. Project) Series 1985, (Bank of
New York LOC),
4.00% 12/01/25**#................... 6,300
3,250 Lowell, Arkansas, IDR, (Little Rock
Newspapers, Inc. Project) Series
1996, AMT, (Bank of New York LOC),
3.90% 06/01/31**#................... 3,250
--------
14,550
--------
CALIFORNIA -- 1.9%
19,000 California Higher Education Loan
Authority Inc., Student Loan
Revenue, Sr. Lien, Series 1992A-2,
(SLMA Guarantee),
3.18% 04/01/00...................... 19,000
19,725 California Higher Education Loan
Authority, Inc., Student Loan
Revenue Refunding, Sr. Lien, Series
1992A-1, (SLMA Guarantee),
3.50% 10/01/02...................... 19,724
3,400 Los Angeles, California, Regional
Airports Improvement Corporation,
Lease Revenue, (LAX Two
Corporation - Los Angeles
International Airport Project)
Series 1985, (Societe Generale LOC),
3.80% 12/01/25**.................... 3,400
--------
42,124
--------
COLORADO -- 1.5%
5,440 Arapahoe County, Colorado, IDR,
(Suntory Water Group, Inc. Project)
Series 1998, AMT, (Wachovia Bank
LOC),
3.90% 05/01/23**#................... 5,440
3,500 Denver City and County, Colorado,
Airport Revenue, Series 1992F, AMT,
(Credit Local de France LOC),
3.85% 11/15/25**.................... 3,500
5,000 Denver City and County, Colorado,
Airport Revenue, Series 1992G, AMT,
(Credit Local de France LOC),
3.85% 11/15/25**.................... 5,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
COLORADO -- (CONTINUED)
$ 5,305 El Paso County, Colorado, Multi-Family
Housing Revenue Refunding,
(Briarglen Apartments Project)
Series 1995, (General Electric
Capital Corporation Guarantee),
3.70% 12/01/24**#................... $ 5,305
5,315 Jefferson County, Colorado, School
District No. R-001, GO Refunding,
Series 1997, (MBIA Insured, State
Aid Withholding),
5.25% 12/15/99...................... 5,329
9,300 Moffat County, Colorado, PCR,
(Tri-State Colorado - Utah Electric
Cooperative Project) Series 1984,
(AMBAC Insured, Societe Generale
SBPA),
3.85% 07/01/10**.................... 9,300
--------
33,874
--------
DELAWARE -- 2.1%
14,500 Delaware State Economic Development
Authority, Hospital Billing Revenue,
Series 1985, (MBIA Insured, Morgan
Stanley SBPA),
3.85% 12/01/15**.................... 14,500
6,100 Delaware State Economic Development
Authority, Hospital Billing Revenue,
Series 1985C, (MBIA Insured, Morgan
Stanley SBPA),
3.85% 12/01/15**.................... 6,100
10,000 Delaware State Economic Development
Authority, IDR, (Star Enterprise -
Delaware Clean Power Project)
Series 1997B, AMT, (Canadian
Imperial Bank of Commerce LOC),
3.85% 08/01/29**.................... 10,000
17,300 Delaware State Economic Development
Authority, IDR, (Star Enterprise -
Delaware Clean Power Project)
Series 1997C, AMT, (Canadian
Imperial Bank of Commerce LOC),
3.84% 08/01/29**.................... 17,300
--------
47,900
--------
FLORIDA -- 2.5%
11,790 Broward County, Florida, Housing
Finance Authority, Multi-Family
Housing Revenue, (Harbour Town
Project) Series 1999 PT-1166,
(Merrill Lynch Capital Guarantee),
3.99% 12/01/25**#(++)............. 11,790
6,300 Dade County, Florida, Special Revenue,
(Youth Fair and Exposition Project)
Series 1995, (SunTrust Bank of
Central Florida LOC),
3.80% 08/01/15**.................... 6,300
5,000 Florida Housing Finance Agency, Multi-
Family Housing Revenue, (Lakeside
South Associates Apartments Project)
Series 1988B, (Bankers Trust Company
LOC),
3.88% 08/01/06**#................... 5,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
FLORIDA -- (CONTINUED)
$ 7,500 Indian River County, Florida, Hospital
District Revenue, (Indian River
Memorial Hospital Project) Series
1985, (KBC Bank N.V. LOC),
3.85% 10/01/15**.................... $ 7,500
3,645 Manatee County, Florida, Housing
Finance Authority, Multi-Family
Mortgage Revenue, (Hampton Court
Project) Series 1989A, (Credit
Suisse First Boston LOC),
3.80% 06/01/07**#................... 3,645
12,500 Miami, Florida, Health Facilities
Authority, Health Facilities
Revenue, (Miami Jewish Home and
Hospital Project) Series 1996,
(SunTrust Bank Miami LOC),
3.80% 12/01/16**#................... 12,500
1,500 Palm Beach County, Florida, Revenue,
(Norton Gallery School of Art
Project) Series 1995, (Northern
Trust Company LOC),
3.75% 05/01/25**.................... 1,500
6,000 Polk County, Florida, Industrial
Development Authority, Revenue,
(Farmland Hydro, LP Project) Series
1998, AMT, (Rabobank Nederland LOC),
3.85% 02/01/29**.................... 6,000
2,950 St. Lucie County, Florida, IDR
Refunding, (Florida Convalescent
Centers Project) Series 1988,
(Toronto Dominion Bank LOC),
3.30% 01/01/11**.................... 2,950
--------
57,185
--------
GEORGIA -- 10.0%
10,000 Albany-Dougherty, Georgia, Payroll
Development Authority, PCR
Refunding, (Philip Morris Companies,
Inc. Project) Series 1992,
3.85% 10/01/05**#................... 10,000
5,300 Bibb County, Georgia, Development
Authority Revenue, (First
Presbyterian Day School Project)
Series 1999, (SunTrust Bank of
Georgia LOC),
3.80% 05/01/19...................... 5,300
10,400 Clayton County, Georgia, Hospital
Authority, Revenue Anticipation
Certificates, (Southern Regional
Medical Center Project) Series
1998B, (SunTrust Bank LOC),
3.80% 08/01/19**#................... 10,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 6,385 Clayton County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Chateau Forest
Apartments Project) Series 1990E,
(FSA Insured, Societe Generale
SBPA),
3.80% 01/01/21**.................... $ 6,385
3,380 Clayton County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Village Rouge
Apartments Project) Series 1990C,
(FSA Insured, Societe Generale
SBPA),
3.80% 01/01/21**.................... 3,380
1,965 Cobb County, Georgia, IDR,
(Datagraphic Inc. Project) Series
1990, AMT, (SouthTrust Bank of
Alabama LOC),
4.00% 05/01/05**.................... 1,965
3,500 Cobb County, Georgia, Residential Care
Facilities for the Elderly
Authority, (North Georgia
Presbyterian Homes, Inc. Project)
Series 1993, (SunTrust Bank LOC),
3.80% 08/01/18**#................... 3,500
17,330 Cobb-Marietta, Georgia, Coliseum and
Exhibit Hall Authority, Revenue, Jr.
Lien, Series 1996A, (MBIA Insured,
Canadian Imperial Bank of Commerce
SBPA),
3.80% 10/01/26**#................... 17,330
3,260 College Park, Georgia, Business and
Industrial Development Authority,
Revenue Refunding, (College Park
Association Project) Series 1997,
(Bank of New York LOC),
3.80% 06/01/14**#................... 3,260
10,915 Columbia County, Georgia, Residential
Care Facilities for the Elderly
Authority, Revenue, (Augusta
Residential Center on Aging Project)
Series 1994, (SunTrust Bank LOC),
3.80% 01/01/21**#................... 10,915
2,250 Columbus, Georgia, Housing Authority,
Multi-Family Housing Revenue
Refunding, (Quail Ridge Project)
Series 1988, (Columbus Bank & Trust
LOC),
4.10% 02/01/05**#................... 2,250
3,085 Columbus, Georgia, Industrial and Port
Development Commission, Revenue
Refunding, (Parisian, Inc. Project)
Series 1995, (Columbus Bank & Trust
LOC),
4.15% 04/01/07**#................... 3,085
4,280 DeKalb County, Georgia, Development
Authority, Industrial Educational
Revenue, (Catholic School
Properties, Inc. Project) Series
1999, (Wachovia Bank, N.A. LOC),
3.80% 04/01/24**.................... 4,280
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 7,115 DeKalb County, Georgia, Development
Authority, Revenue, (American Cancer
Society, Inc. Project) Series 1988,
(SunTrust Bank LOC),
3.80% 05/01/13**#................... $ 7,115
3,160 DeKalb County, Georgia, Hospital
Authority, Revenue Anticipation
Certificates, (DeKalb Medical
Center, Inc. Project) Series 1994,
(SunTrust Bank LOC),
3.80% 09/01/09**#................... 3,160
4,400 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Camden Brook
Project) Series 1995, (FNMA
Collateral Agreement),
3.80% 06/15/25**.................... 4,400
14,935 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Wood Terrace
Apartments Project) Series 1995,
(FNMA Collateral Agreement),
3.80% 12/15/15**.................... 14,935
5,430 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue, (Haystack Apartments
Project) Series 1995, AMT, (General
Electric Capital Corporation
Guarantee),
3.95% 12/01/20**#................... 5,430
6,875 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue, (Stone Mill Run Apartments
Project) Series 1995A, AMT, (First
Tennessee Bank, N.A. LOC),
3.85% 08/01/27**.................... 6,875
5,400 DeKalb County, Georgia, Industrial
Development Authority, IDR,
(A.G.Rhodes Home Inc. Project)
Series 1996, (SunTrust Bank LOC),
3.80% 03/01/21**#................... 5,400
5,250 DeKalb County, Georgia, Industrial
Development Authority, IDR,
(Radiation Sterilizers Inc. Project)
Series 1985, (Comerica Bank LOC),
3.55% 03/01/05**#................... 5,250
5,000 Floyd County, Georgia, Development
Authority, University and College
Improvement Revenue, (Berry College,
Inc. Project) Series 1999, (Sun
Trust Bank LOC),
3.80% 03/01/24**.................... 5,000
4,500 Fulton County, Georgia, Development
Authority, Revenue, (Alfred/Adele
Davis Academy Project) Series 1998,
(SunTrust Bank LOC),
3.80% 10/01/18**#................... 4,500
12,500 Fulton County, Georgia, Development
Authority, Revenue, (Robert W.
Woodruff Arts Center Project) Series
1993, (Wachovia Bank of Georgia
LOC),
3.80% 08/01/18**#................... 12,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 3,000 Fulton County, Georgia, Development
Authority, Revenue, (Spelman College
Project) Series 1996, (SunTrust Bank
LOC),
3.80% 06/01/16**#................... $ 3,000
2,400 Greene County, Georgia, Industrial
Development Authority, IDR,
(Chipman-Union, Inc. Project) Series
1995A, AMT, (SunTrust Bank LOC),
3.90% 03/01/05**#................... 2,400
7,500 Gwinnett County, Georgia, Industrial
Development Authority, IDR, (United
Stationers Company Project) Series
1990, (PNC Bank of Ohio, N.A. LOC),
3.85% 12/31/02**#................... 7,500
5,800 Gwinnett County, Georgia, Industrial
Development Authority, IDR, (Volvo
of America Corporation Project)
Series 1986, AMT, (UBS AG LOC),
4.10% 08/01/06**.................... 5,800
3,000 Henry County, Georgia, Development
Authority, Revenue Refunding,
(Georgia-Pacific Corporation
Project) Series 1993, (SunTrust Bank
LOC),
3.80% 05/01/04**#................... 3,000
1,000 Newton County, Georgia, Industrial
Development Authority, IDR, (H.B.
Fuller Company Project) Series 1984,
(Commerzbank A.G. LOC),
3.90% 12/01/04**.................... 1,000
7,750 Rockdale County, Georgia, Water and
Sewer Authority, Capital Outlay
Revenue, Series 1999,
3.75% 12/15/99##(++).............. 7,755
8,600 Smyrna, Georgia, Housing Authority,
Multi-Family Housing Revenue,
(Gardens of Post Village Apartment
Project) Series 1996, (FNMA
Collateral Agreement),
3.80% 06/01/25**#................... 8,600
16,300 Smyrna, Georgia, Housing Authority,
Multi-Family Housing Revenue, (Post
Apartment Homes - Post Valley, LP
Project) Series 1995, (FNMA
Collateral Agreement),
3.80% 06/01/25**#................... 16,300
4,000 Tallapoosa, Georgia, Development
Authority, IDR Refunding, (U.S. Can
Company Project) Series 1994,
(Harris Trust & Savings Bank LOC),
3.80% 02/01/15**#................... 4,000
5,000 Thomaston-Upson County, Georgia, IDR,
Refunding, (Quad
Graphic - Thomaston, Inc. Project)
Series 1990, (First Union National
Bank LOC),
3.80% 04/01/00**#................... 5,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 5,450 Worth County, Georgia, Industrial
Development Authority, Revenue
Refunding, (Seabrook Enterprises
Inc. Project) Series 1996A,
(SunTrust Bank LOC),
3.80% 08/01/23**#................... $ 5,450
--------
226,420
--------
HAWAII -- 0.4%
8,400 Hawaii State Housing Finance and
Development Corporation, Rental
Housing System Revenue Bonds, Series
1989A, (Banque Nationale de Paris
LOC),
3.85% 07/01/24**.................... 8,400
--------
IDAHO -- 1.2%
4,235 Idaho Health Facilities Authority,
Revenue, (St Lukes Regional Medical
Center Project) Series 1995,
(Bayerische Landesbank LOC),
3.95% 05/01/22**.................... 4,235
22,275 Idaho Housing and Finance Association,
Series 1998 PT-173, AMT,
(Commerzbank AG SBPA),
3.90% 07/01/29**#................... 22,275
--------
26,510
--------
ILLINOIS -- 15.8%
2,600 Chicago, Illinois, Airport Special
Facilities Revenue, (Centerpoint
O'Hare Project) Series 1997, (First
National Bank of Chicago LOC),
3.90% 09/01/32**#................... 2,600
5,855 Chicago, Illinois, IDR, (Eli's
Chicago's Finest Inc. Project)
Series 1996, AMT, (American Bank &
Trust LOC),
3.85% 11/01/26**#................... 5,855
6,170 Chicago, Illinois, O'Hare
International Airport Revenue,
(General Airport Project) Second
Lien, Series 1984B, (Societe
Generale LOC),
3.77% 01/01/15**.................... 6,170
13,100 Chicago, Illinois, O'Hare
International Airport Revenue,
(General Airport Project) Second
Lien, Series 1994C, (Societe
Generale LOC),
3.70% 01/01/18**.................... 13,100
2,315 Illinois Development Finance
Authority, IDR Refunding, (St.
Xavier University Project) Series
1992, (American National Bank &
Trust Company LOC),
3.80% 10/01/12**.................... 2,315
3,630 Illinois Development Finance
Authority, IDR, (Randolph Pickle
Corporation Project) Series 1992,
AMT, (American National Bank & Trust
Company LOC),
4.00% 06/01/12**.................... 3,630
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 2,000 Illinois Development Finance
Authority, Revenue, (Chicago
Symphony Orchestra - Orchestral
Association Project) Series 1994,
(Northern Trust Company LOC),
3.70% 12/01/28**.................... $ 2,000
12,300 Illinois Development Finance
Authority, Revenue, (Lyric Opera of
Chicago Project) Series 1994,
(Northern Trust Company LOC, Bank
One of Michigan LOC, Harris Trust &
Savings Bank LOC, Caisse Nationale
de Credit Agricole LOC),
3.80% 12/01/28**.................... 12,300
8,900 Illinois Educational Facilities
Authority, Revenue, (Arts Club of
Chicago Project) Series 1996,
(Northern Trust Company LOC),
3.80% 01/01/26**.................... 8,900
29,000 Illinois Educational Facilities
Authority, Revenue, (Field Museum of
Natural History Project) Series
1998, (Northern Trust Company LOC),
3.80% 11/01/32**.................... 29,000
6,000 Illinois Educational Facilities
Authority, Revenue, (Museum of
Science and Industry Project) Series
1992, (First National Bank of
Chicago LOC),
3.80% 10/01/26**.................... 6,000
12,369 Illinois Educational Facilities
Authority, Revenue, (Northwestern
University Project) Series 1988,
(Northern Trust Company SBPA),
3.85% 03/01/28**.................... 12,369
11,090 Illinois Educational Facilities
Authority, Revenue, (University
Pooled Financing Program) Series
1985, (FGIC Insured, First National
Bank of Chicago SBPA),
3.80% 12/01/05**#................... 11,090
11,000 Illinois Health Facilities Authority,
Revenue, (Evanston Hospital
Corporation Project) Series 1996,
3.45% 05/15/00**#................... 11,000
4,200 Illinois Health Facilities Authority,
Revenue, (Gottlieb Health Resources,
Inc. Project) Series 1994, (Harris
Trust & Savings Bank LOC),
3.80% 11/15/24**.................... 4,200
9,800 Illinois Health Facilities Authority,
Revenue, (Sacramento Development
Association - Park Plaza Center
Project) Series 1996, (La Salle
National Bank LOC),
3.80% 09/15/20**.................... 9,800
7,100 Illinois Health Facilities Authority,
Revenue, (The Streeterville
Corporation Project) Series 1994,
(First National Bank of Chicago
LOC),
3.80% 08/15/24**.................... 7,100
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 1,800 Illinois State Development Finance
Authority, Economic Development
Revenue, (Addison 450 LP Project)
Series 1989, AMT, (American National
Bank & Trust Company LOC),
3.90% 12/01/09**.................... $ 1,800
9,000 Illinois State Development Finance
Authority, Economic Development
Revenue, (Roosevelt University
Project) Series 1995, (American
National Bank & Trust Company LOC),
3.80% 04/01/25**.................... 9,000
4,320 Illinois State Development Finance
Authority, Revenue, (Chicago Academy
of Sciences Project) Series 1997,
(American National Bank & Trust
Company LOC),
3.80% 01/01/31**.................... 4,320
700 Illinois State Educational Facilities
Authority, Revenue, (Chicago
Historical Society Project) Series
1985, (American National Bank &
Trust Company LOC),
3.80% 12/01/25**#................... 700
1,200 Illinois State Health Facilities
Authority, Revenue, (Central Health
and Northwest Community Hospital
Project) Series 1985B, (Harris Trust
& Savings Bank LOC),
3.80% 10/01/15**#................... 1,200
5,300 Illinois State Health Facilities
Authority, Revenue, (Childrens
Memorial Hospital Project) Series
1985B, (First National Bank of
Chicago LOC),
3.80% 11/01/15**.................... 5,300
11,000 Illinois State Health Facilities
Authority, Revenue, (Evanston
Hospital Corporation Project) Series
1985B,
3.65% 08/15/00**#................... 11,000
45,100 Illinois State Housing Development
Authority, Housing Revenue,
(Illinois Center Apartments Project)
Series 1985, (Met Life Guarantee,
KBC SBPA),
3.90% 01/01/08**#................... 45,100
10,000 Illinois State, GO, Series 1999,
4.00% 06/01/00...................... 10,039
7,000 Jackson-Union County, Illinois,
Regional District, Port Facilities
Revenue Refunding, (Enron
Transportation Services Project)
Series 1994, (First Union National
Bank LOC),
3.85% 04/01/24**#................... 7,000
13,700 Kane County, Illinois, Educational
Facilities Revenue, (Glenwood School
for Boys Project) Series 1993,
(Harris Trust & Savings Bank LOC),
3.80% 02/01/28**.................... 13,700
15,000 Lisle, Illinois, Multi-Family Housing
Revenue, (Ashley of Lisle Project)
Series 1987, (FHLMC Guarantee),
3.75% 12/15/25**.................... 15,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 7,885 Lombard, Illinois, Multi-Family
Housing Revenue, (Clover Creek
Apartments Project) Series 1985,
(Continental Casualty Surety Bond),
Mandatory Tender 12/15/99,
3.55% 12/15/06**.................... $ 7,885
44,535 Metropolitan Pier and Exposition
Authority, Illinois, Dedicated
Special Tax Revenue, (McCormick
Place Project) Series 1998 PT-1030,
(AMBAC Insured, Merrill Lynch SBPA),
3.85% 06/15/27**#................... 44,535
3,700 Palos Hills, Illinois, Multi-Family
Housing Revenue, (Green Oaks
Project) Series 1998, AMT, (La Salle
National Bank LOC),
3.84% 08/01/29**#................... 3,700
7,000 Quincy, Illinois, Revenue, (Quincy
University Project) Series 1997,
(Allied Irish Bank, PLC LOC),
3.85% 06/01/22**#................... 7,000
7,195 Richton Park, Illinois, IDR, (Sinter
Metals Inc. Project) Series 1996,
AMT, (Mellon Bank, N.A. LOC),
3.95% 04/01/16**#................... 7,195
9,500 Sauget, Illinois, GO, Series 1997,
(Credit Communal de Belgique LOC),
3.80% 02/01/16**.................... 9,500
1,400 Southwestern Illinois Development
Authority, IDR, (Robinson Steel
Company, Inc. Project) Series 1991,
AMT, (American National Bank & Trust
Company LOC),
3.90% 12/01/06**.................... 1,400
5,000 Woodford County, Illinois, Industrial
Development Authority, IDR, (Parsons
Company, Inc. Project) Series 1998,
AMT, (Bank One Illinois, N.A. LOC),
3.95% 03/01/13**#................... 5,000
--------
357,803
--------
INDIANA -- 2.9%
505 Evansville, Indiana, IDR Refunding,
(Keebler Company Project) Series
1993, (Bank of Nova Scotia LOC),
3.85% 06/01/04**.................... 505
5,000 Fort Wayne, Indiana, Economic
Development Revenue Refunding,
(Georgetown Place Venture Project)
Series 1987, (Federal Home Loan Bank
LOC),
3.80% 12/01/15**#................... 5,000
3,495 Hendricks County, Indiana,
Redevelopment Commission, Tax
Increment Revenue, (Heartlands
Crossing Project) Series 1997A,
(Bank One Indiana, N.A. LOC),
3.85% 01/01/22**#................... 3,495
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
INDIANA -- (CONTINUED)
$ 14,900 Indiana State Development Finance
Authority, Economic Development
Educational Facilities Revenue,
(Indiana Historical Society Project)
Series 1997, (Bank One Michigan
LOC),
3.80% 08/01/31**#................... $ 14,900
1,300 Indiana State Development Finance
Authority, Economic Development
Revenue, (Fischer Enterprises, Ltd.
Project) Series 1991, (PNC Bank,
N.A. LOC),
3.95% 11/01/01**#................... 1,300
2,000 Indiana State Development Finance
Authority, Economic Development
Revenue, (Walker-Williams Lumber
Project) Series 1994, AMT, (Columbus
Bank & Trust LOC),
4.15% 01/01/09**#................... 2,000
9,700 Indiana State Development Finance
Authority, IDR, (Indiana University
Foundation Project) Series 1998,
(National City Bank LOC),
3.85% 08/01/18**#................... 9,700
925 Indiana State Health Facilities
Financing Authority, Capital Access
Designated Pool Revenue, Series
1997, (Comerica Bank LOC),
3.75% 01/01/12**.................... 925
8,500 Indiana State Hospital Equipment
Financing Authority, Revenue, Series
1985A, (MBIA Insured, Bank One of
Michigan SBPA),
3.75% 12/01/15**#................... 8,500
4,900 Indianapolis, Indiana, Economic
Development Revenue, (Edgcomb Metals
Company Project) Series 1983, (Wells
Fargo Bank LOC),
3.80% 12/01/08**.................... 4,900
3,000 Indianapolis, Indiana, Multi-Family
Housing Revenue, (El-Beulah
Retirement Village Project) Series
1996, (Bank One Michigan LOC),
3.90% 03/01/21**#................... 3,000
5,310 St. Joseph County, Indiana, Economic
Development Revenue, (Brothers of
the Holy Cross Project) Series 1997,
(Key Bank N.A. LOC),
3.85% 09/01/17**#................... 5,310
6,600 Terre Haute, Indiana, Economic
Development Revenue, (First
Financial Corporation Project)
Series 1985, (First National Bank of
Chicago LOC),
3.80% 12/01/15**.................... 6,600
--------
66,135
--------
IOWA -- 0.1%
2,000 Iowa State Finance Authority, IDR,
(Sauer-Sundstrand Company Project)
Series 1996, AMT, (Hypo Vereinsbank
LOC),
3.85% 05/01/26**#................... 2,000
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
KANSAS -- 2.0%
$ 4,000 Junction City, Kansas, IDR, (Genmar
Manufacturing Project) Series 1999,
AMT, (Bank of New York LOC),
4.00% 04/01/19**#................... $ 4,000
1,900 Kansas Industrial Development Finance
Authority, Revenue, (PQ Corporation
Project) Series 1988, (Bank of New
York LOC),
4.00% 08/01/15**.................... 1,900
9,600 Kansas State Development Finance
Authority, Exempt Facilities
Revenue, (Seaboard Project) Series
1995A, AMT, (Bank of New York LOC),
3.90% 12/01/25**#................... 9,600
28,950 Olathe, Kansas, Educational Facilities
Revenue, (Kansas Independent College
Association Project) Series 1989A,
(Key Bank, N.A. LOC),
3.75% 07/01/24**.................... 28,950
--------
44,450
--------
KENTUCKY -- 2.2%
11,015 Georgetown, Kentucky, Educational
Institution Improvement Revenue,
(Georgetown College Project) Series
1997B, (Bank One Kentucky N.A. LOC),
3.85% 12/01/17**#................... 11,015
1,000 Hopkinsville, Kentucky, Industrial
Building Revenue, (Brazeway, Inc
Project) Series 1994, AMT, (Bank One
Michigan LOC),
4.00% 06/01/04**#................... 1,000
3,500 Lebanon, Kentucky, IDR, (Wallace
Computer Services, Inc. Project)
Series 1994, AMT, (Wachovia Bank of
Georgia LOC),
3.90% 06/01/19**#................... 3,500
5,500 Lexington-Fayette County, Kentucky,
Urban County Airport Corporation,
Revenue, (First Mortgage Project)
Series 1994A, AMT, (Credit Local de
France LOC),
4.10% 04/01/24**.................... 5,500
2,800 Lexington-Fayette County, Kentucky,
Urban County Airport Corporation,
Revenue, (First Mortgage Project)
Series 1994B, AMT, (Credit Local de
France LOC),
4.10% 04/01/24**.................... 2,800
6,250 Louisville and Jefferson County,
Kentucky, Regional Airport
Authority, Airport Systems Revenue,
BAN, Series 1997AA-1, AMT, (National
City Bank Kentucky LOC),
3.90% 06/30/02**.................... 6,250
5,600 Mason County, Kentucky, PCR, (East
Kentucky Power National Rural
Cooperative Project) Series 1984B-1,
(CFC Insured),
3.85% 10/15/14**.................... 5,600
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
KENTUCKY -- (CONTINUED)
$ 8,750 Mason County, Kentucky, PCR, (East
Kentucky Power National Rural
Cooperative Project) Series 1984B-2,
(CFC Insured),
3.85% 10/15/14**.................... $ 8,750
6,000 Middletown, Kentucky, Revenue,
(Christian Academy Louisville
Project) Series 1997, (Bank One of
Kentucky, N.A. LOC),
3.85% 07/01/22**#................... 6,000
--------
50,415
--------
LOUISIANA -- 5.3%
6,550 Caddo Parish, Louisiana, Industrial
Development Board, Revenue,
(Frymaster Corporation Project)
Series 1987, (Chase Manhattan Bank
LOC),
3.80% 01/01/03**#................... 6,550
1,100 East Baton Rouge Parish, Louisiana,
Solid Waste Disposal Revenue, (Exxon
Project) Series 1998, (Exxon
Guarantee),
3.85% 12/01/28**.................... 1,100
23,300 Jefferson Parish, Louisiana, Hospital
Service District Number 001, Revenue
Refunding, (West Jefferson Medical
Center Project) Series 1996,
(Rabobank Nederland LOC),
3.80% 01/01/26**.................... 23,300
22,325 Louisiana Public Facilities Authority,
PCR, (Ciba-Geigy Corporation
Project) Series 1985, (UBS AG LOC),
3.75% 12/01/04**.................... 22,325
12,000 Louisiana Public Facilities Authority,
Revenue, (Inter-Community Health
Care Project) Series 1999, (Hibernia
National Bank LOC),
3.80% 04/01/21**#................... 12,000
16,400 Louisiana State Offshore Terminal
Authority, Revenue Refunding, (Loop,
Inc. Project) Series 1992A, (UBS AG
LOC),
3.75% 09/01/08**.................... 16,400
25,000 Louisiana State Public Facilities
Authority, Hospital Revenue,
(Willis-Knighton Medical Center
Project) Series 1997, (AMBAC
Insured, Credit Local de France
SBPA),
4.00% 09/01/27**.................... 25,000
9,000 South Louisiana, Port Commission,
Facilities Port Revenue, (Holnam,
Inc. Project) Series 1997, AMT,
(Wachovia Bank LOC),
3.85% 01/01/27**#................... 9,000
5,200 Upper Pontalba, Louisiana, Building
Restoration Corporation, Revenue
Refunding, (Upper Pontalba Building
Project) Series 1996, (Bank One
Louisiana LOC),
3.85% 12/01/16**#................... 5,200
--------
120,875
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
MARYLAND -- 0.6%
$ 3,300 Baltimore, Maryland, Port Facilities
Revenue, (Occidental Petroleum
Corporation Project) Series 1981,
(Wachovia Bank LOC),
3.35% 10/14/11**.................... $ 3,300
6,900 Maryland State Industrial Development
Finance Authority, Economic
Development Revenue, (General
Binding Corporation Project) Series
1996, AMT, (Harris Trust & Savings
Bank LOC),
3.90% 03/01/26**#................... 6,900
2,300 Maryland State Industrial Development
Finance Authority, Revenue, (Rock-
Tennessee Converting Company
Project) Series 1994, AMT, (SunTrust
Bank LOC),
3.90% 05/01/06**#................... 2,300
--------
12,500
--------
MICHIGAN -- 2.0%
7,500 Grand Rapids, Michigan, Economic
Development Corporation, IDR
Refunding, (Baker, Knapp and Tubbs,
Inc. Project) Series 1992, (Wachovia
Bank & Trust LOC),
3.80% 06/01/12**#................... 7,500
14,800 Green Lake Township, Michigan,
Economic Development Corporation,
Revenue, (Interlochen Center for the
Arts Project) Series 1997, (La Salle
National Bank LOC),
3.80% 06/01/27**#................... 14,800
3,055 Jackson County, Michigan, Economic
Development Corporation, IDR
Refunding, (Jackson Associates, LLC
Project) Series 1994, (Bank One of
Dayton, N.A. LOC),
3.85% 10/01/14**#................... 3,055
7,560 Michigan State Hospital Finance
Authority, Revenue, (St. Mary's of
Livonia Hospital Project) Series
1996A, (Comerica Bank LOC),
3.75% 07/01/17**.................... 7,560
10,335 Michigan State Strategic Fund, PCR,
(General Motors Corporation Project)
Series 1985, (General Motors
Guarantee),
3.70% 12/01/08**.................... 10,335
2,100 University of Michigan, Board of
Regents, Revenue, (University of
Michigan Hospitals Project) Series
1995A,
3.80% 12/01/27**.................... 2,100
--------
45,350
--------
MINNESOTA -- 0.3%
5,720 Minneapolis, Minnesota, Community
Development Agency, Revenue, (Arena
Acquisition Project) Series 1995A,
(US Bank N.A. LOC),
3.80% 10/01/24**.................... 5,720
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
MISSISSIPPI -- 1.9%
$ 1,800 Mississippi Business Finance
Corporation, (Trilogy Communications
Project) Series 1995, AMT, (First
Union National Bank LOC),
4.00% 06/01/05**#................... $ 1,800
2,000 Mississippi Business Finance
Corporation, IDR, (Choctaw Maid
Farms, Inc. Project) Series 1995,
AMT, (Rabobank Nederland LOC),
3.90% 03/01/10**#................... 2,000
39,155 Mississippi State, GO, Putters 103,
Series 1998B, (FGIC Insured, Bank of
New York SBPA),
3.90% 11/01/11**#................... 39,155
--------
42,955
--------
MISSOURI -- 8.0%
5,000 Berkeley, Missouri, Industrial
Development Authority, IDR, (Flight
Safety International, Inc. Project)
Series 1984, (Wachovia Bank LOC),
3.80% 09/01/04**#................... 5,000
5,000 Berkeley, Missouri, Industrial
Development Authority, Revenue
Refunding, (Wetterau, Inc. Project)
Series 1987, (PNC Bank, N.A. LOC),
3.75% 07/01/08**#................... 5,000
4,100 Columbia, Missouri, Special Obligation
Revenue, Series 1988A, (Toronto
Dominion Bank LOC),
3.70% 06/01/08**.................... 4,100
10,800 Columbia, Missouri, Water and Electric
Systems Revenue, Series 1985B,
(Toronto Dominion Bank LOC),
3.70% 12/01/15**.................... 10,800
18,400 Kansas City, Missouri, Industrial
Development Authority, Multi-Family
Housing Revenue, (Timberlane Village
Associates Project) Series 1986,
(UBS AG LOC),
3.87% 06/01/27**.................... 18,400
20,845 Missouri State Environmental
Improvement and Energy Resources
Authority, PCR, (Union Electric
Company Project) Series 1985B,
(Westdeutsche Landesbank LOC),
3.25% 10/12/99**.................... 20,845
12,000 Missouri State Environmental
Improvement and Energy Resources
Authority, PCR, (Union Electric
Company Project) Series 1985B,
(Westdeutsche Landesbank LOC),
3.25% 11/16/99**.................... 12,000
18,655 Missouri State Environmental
Improvement and Energy Resources
Authority, PCR, (Union Electric
Company Project) Series 1985B,
(Westdeutsche Landesbank LOC),
3.20% 11/18/99**.................... 18,655
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
MISSOURI -- (CONTINUED)
$ 23,290 Missouri State Health and Educational
Facilities Authority, Health
Facilities Revenue, (BJC Health
Systems/Barnes Hospital Project)
Series 1985, (Morgan Guaranty Trust
LOC),
3.75% 12/01/15**.................... $ 23,290
15,400 Missouri State Health and Educational
Facilities Authority, Health
Facilities Revenue, (Sisters of
Mercy Health Care System Project)
Series 1989B, (ABN-AMRO Bank SBPA,
Rabobank Nederland SBPA),
3.75% 06/01/19**.................... 15,400
6,100 Missouri State Health and Educational
Facilities Authority, Health
Facilities Revenue, (Sisters of
Mercy Health Care System Project)
Series 1989D, (ABN-AMRO Bank SBPA,
Rabobank Nederland SBPA),
3.75% 06/01/19**.................... 6,100
7,400 Missouri State Health and Educational
Facilities Authority, Revenue,
(Rockhurst College Project) Series
1995, (Allied Irish Bank PLC Group
LOC),
3.65% 11/01/25**.................... 7,400
2,700 Missouri State Health and Educational
Facilities Authority, University and
College Improvements Educational
Facilities Revenue, (St. Louis
University Project) Series 1985,
(FGIC Insured, Morgan Guaranty Trust
SBPA),
4.00% 12/01/05**.................... 2,700
9,300 Platte County, Missouri, Industrial
Development Authority, Multi-Family
Housing Revenue Refunding, (Wexford
Place Project) Series 1996, (Bank
One Texas, N.A. LOC),
3.83% 04/01/28**#................... 9,300
3,070 St. Charles County, Missouri,
Industrial Development Authority,
Revenue Refunding, (Casalon
Apartments Project) Series 1995,
(Citibank, N.A. LOC),
3.65% 09/01/25**.................... 3,070
8,000 St. Louis, Missouri, Industrial
Development Authority, Revenue
Refunding, (Wetterau, Inc. Project)
Series 1988, (Wachovia
Bank & Trust LOC),
3.75% 12/01/03**#................... 8,000
5,000 St. Louis, Missouri, Industrial
Development Authority, Revenue
Refunding, (Wetterau, Inc. Project)
Series 1989, (PNC Bank, N.A. LOC),
3.75% 05/01/09**#................... 5,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
MISSOURI -- (CONTINUED)
$ 5,505 St. Louis, Missouri, Planned
Industrial Expansion Authority, IDR,
(Alumax Foils Project) Series 1992,
(PNC Bank, N.A. LOC),
3.85% 12/01/05**#................... $ 5,505
--------
180,565
--------
MONTANA -- 0.1%
1,400 Montana State Health Facilities
Authority, Health Care Revenue,
(Pooled Loan Program) Series 1985A,
(AMBAC Insured, Norwest Bank SBPA),
3.65% 12/01/15**.................... 1,400
--------
NEBRASKA -- 0.2%
4,500 Nebraska Help, Inc., Student Loan
Revenue, Series 1986B, AMT, (SLMA
Guarantee),
3.90% 12/01/16**.................... 4,500
--------
NEVADA -- 0.0%++
450 Clark County, Nevada, IDR,
(Cogeneration Association I Project)
Series 1991, AMT, (Canadian Imperial
Bank of Commerce LOC),
3.90% 11/01/21**.................... 450
--------
NEW HAMPSHIRE -- 0.3%
7,000 Merrimack County, New Hampshire, TAN,
GO, Series 1999,
3.13% 12/30/99...................... 7,001
--------
NEW MEXICO -- 0.1%
3,100 Albuquerque, New Mexico, Revenue
Refunding, (Charter Hospital Inc
Project) Series 1992, (Chase
Manhattan Bank LOC),
3.80% 03/01/14**#................... 3,100
--------
NEW YORK -- 2.1%
2,815 Erie County, New York, Industrial
Development Agency, Civic Facilities
Revenue, (DePaul Community
Facilities, Inc. Project) Series
1996, (Key Bank of New York N.A.
LOC),
3.85% 11/01/16**#................... 2,815
6,770 Monroe County, New York, Industrial
Development Agency, Civic Facilities
Revenue, (Hillside Childrens Center
Project) Series 1998, (Key Bank N.A.
LOC),
3.85% 08/01/18**#................... 6,770
38,990 New York State Dormitory Authority,
Revenue, Series 1998 PT-1066, (AMBAC
Insured, Merrill Lynch SBPA),
3.82% 07/01/23**#................... 38,990
--------
48,575
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
NORTH CAROLINA -- 2.7%
$ 5,000 Cabarrus County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, Revenue
Refunding, (Philip Morris Companies,
Inc. Project) Series 1992,
3.90% 04/01/01**#................... $ 5,000
800 Cabarrus County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, Revenue
Refunding, (Philip Morris Companies,
Inc. Project) Series 1993,
3.90% 01/01/00**#................... 800
2,575 Iredell County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority,
Revenue, (Sullivan Corporation
Project) Series 1996, AMT, (Bank One
Milwaukee, N.A. LOC),
3.95% 01/01/11**.................... 2,575
10,000 Lenoir County, North Carolina,
Hospital Revenue, (Lenoir Memorial
Hospital Project) Series 1998,
(Wachovia Bank of North Carolina
LOC),
3.75% 10/01/12**#................... 10,000
1,100 Mecklenburg County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority,
(Virkler Company Project) Series
1989, AMT, (First Union National
Bank LOC),
3.90% 12/01/04**#................... 1,100
1,900 Mecklenburg County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority,
Revenue, (Sterigenics International
Project) Series 1996, AMT, (Comerica
Bank of California LOC),
3.95% 03/01/16**#................... 1,900
7,700 New Hanover County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, Revenue
Refunding, (Corning, Inc. Project)
Series 1997, (Wachovia Bank Georgia
LOC),
3.75% 05/01/10**.................... 7,700
4,670 North Carolina Medical Care
Commission, Health Care Facilities
Revenue, (Mission-Thomas - St.
Joseph Medical Center Project)
Series 1998, (Wachovia Bank of North
Carolina LOC),
3.75% 03/01/18**.................... 4,670
7,700 North Carolina State Medical Care
Commission, Community Health Care
Facilities Revenue, (Carolina
Village Inc. Project) Series 1998,
(Wachovia Bank LOC),
3.75% 10/01/18**.................... 7,700
3,500 Randolph County, North Carolina,
Industrial Facilities and Pollution
Control Finance Authority Revenue,
(Wayne Steel, Inc. Project) Series
1995, AMT, (Bank One Akron, N.A.
LOC),
3.95% 09/01/05**#................... 3,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
NORTH CAROLINA -- (CONTINUED)
$ 9,700 Wake County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, PCR,
(Carolina Power & Light Company
Project) Series 1987, AMT, (First
Union National Bank LOC),
3.85% 03/01/17**.................... $ 9,700
6,280 Winston-Salem, North Carolina, Risk
Acceptance Management Corporation,
Certificates of Participation,
Series 1988, (Wachovia Bank SBPA),
3.85% 07/01/09** #.................. 6,280
--------
60,925
--------
NORTH DAKOTA -- 0.0%++
800 Grand Forks, North Dakota, Hospital
Facilities Revenue, (The United
Hospital Obligated Group Project)
Series 1992, (LaSalle National Bank
LOC),
3.80% 12/01/16**#................... 800
--------
OHIO -- 2.3%
1,880 Defiance County, Ohio, IDR Refunding,
(Isaac Properties Company Project)
Series 1996A, (Key Bank, N.A. LOC),
3.85% 07/01/00**#................... 1,880
3,000 Lucas County, Ohio, Facilities
Improvement Revenue, (Toledo
Zoological Society Project) Series
1997, (Key Bank, N.A. LOC),
3.75% 10/01/05**#................... 3,000
8,000 Montgomery County, Ohio, Economic
Development Revenue, (The Dayton Art
Institute Project) Series 1996,
(National City Bank LOC),
3.85% 05/01/26**.................... 8,000
4,015 Ohio State Water Development
Authority, Promissory Revenue,
Series 1998A, (National City Bank
LOC),
3.85% 07/01/00**#................... 4,015
13,205 Ohio State Water Development
Authority, Promissory Revenue,
Series 1999A, (National City Bank
LOC),
3.85% 05/01/01**#................... 13,205
995 Summit County, Ohio, IDR Refunding,
(Keebler Company Project) Series
1993, (Bank of Nova Scotia LOC),
3.85% 03/01/05**.................... 995
20,000 Toledo-Lucas County, Ohio, Port
Authority, Airport Development
Revenue, (Flightsafety
International, Inc. Project) Series
1998-1, AMT, (OBH Guarantee), 3.90%
01/01/18**#......................... 20,000
--------
51,095
--------
OKLAHOMA -- 1.1%
6,000 Muskogee City and County, Oklahoma,
Port Authority, IDR, (Metals USA,
Inc. Project) Series 1998, AMT,
(Bank One Texas, N.A. LOC),
3.95% 05/01/23**#................... 6,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
OKLAHOMA -- (CONTINUED)
$ 5,000 Oklahoma Development Finance
Authority, Revenue, (Seabrook Farms
Inc. Project) Series 1997, AMT,
(Bank of New York LOC),
3.90% 03/01/27**#................... $ 5,000
6,605 Oklahoma State Capital Improvement
Authority, State Facilities Revenue,
Series 1999A, (MBIA Insured),
4.50% 09/01/00...................... 6,656
6,500 Tulsa, Oklahoma, Industrial
Development Authority, Revenue,
(Justin Industries Project) Series
1984, (Bank of New York LOC),
3.80% 10/01/14**#................... 6,500
--------
24,156
--------
OREGON -- 1.3%
11,000 Multnomah County, Oregon, TRAN, Series
1999,
3.75% 06/30/00...................... 11,027
15,600 Oregon State, Veteran's Welfare GO,
Series 1985-73-G, (Morgan Guaranty
Trust SBPA),
3.75% 12/01/18**.................... 15,600
1,100 Port of Portland, Oregon, PCR,
(Reynolds Metals Company Project)
Series 1985, (Bank of Nova Scotia
LOC),
3.80% 12/01/09**.................... 1,100
2,000 Washington County, Oregon, Housing
Authority, Multi-Family Housing
Revenue, (Cedar Mill Project) Series
1995, AMT, (Bank of Nova Scotia
LOC),
3.90% 09/01/25**#................... 2,000
--------
29,727
--------
PENNSYLVANIA -- 4.2%
20,000 Allegheny County, Pennsylvania, IDR
Refunding, (Duquesne Light Company
Project) Series 1992A, (Canadian
Imperial Bank of Commerce LOC),
3.50% 10/28/99**.................... 20,000
8,730 Allegheny County, Pennsylvania, IDR,
(United Jewish Federation Project)
Series 1995B, (PNC Bank, N.A. LOC),
3.85% 10/01/25**#................... 8,730
5,000 Montgomery County, Pennsylvania,
Industrial Development Authority,
Revenue, (Plymouth Woods Project)
Series 1987, (PNC Bank, N.A. LOC),
3.85% 09/01/06**#................... 5,000
1,000 Pennsylvania Economic Development
Financing Authority, Development
Revenue, (Pennsylvania Bar Institute
Project) Series 1996B, AMT, (PNC
Bank, N.A. LOC),
3.85% 04/01/15**#................... 1,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
PENNSYLVANIA -- (CONTINUED)
$ 5,900 Philadelphia, Pennsylvania,
Redevelopment Authority, (The
Presbyterian Home Project) Series
1998, (PNC Bank N.A. LOC),
3.85% 07/01/28**#................... $ 5,900
16,300 Philadelphia, Pennsylvania,
Redevelopment Authority, Revenue,
(Southwark Plaza, LP Project) Series
1997A, (PNC Bank, N.A. LOC),
3.85% 12/01/03**.................... 16,300
10,000 Philadelphia, Pennsylvania, School
District, TRAN, Series 1999A, (First
Union National Bank LOC),
4.00% 06/30/00...................... 10,040
10,000 Philadelphia, Pennsylvania, School
District, TRAN, Series 1999B,
(Mellon Bank N.A. LOC),
4.00% 06/30/00...................... 10,040
4,400 Quakertown, Pennsylvania, General
Authority, Revenue, (Pooled
Financing Program) Series 1996A,
(PNC Bank, N.A. LOC),
3.90% 07/01/26**.................... 4,400
5,610 Union County, Pennsylvania, Hospital
Authority, Hospital Revenue,
(Evangelical Community Hospital
Project) Series 1993B, (PNC Bank,
N.A. LOC),
3.85% 10/01/23**.................... 5,610
4,850 Westmoreland County, Pennsylvania,
Industrial Development Authority,
Revenue, (Elizabeth Carbide Die
Project) Series 1998A, AMT,
(National City Bank LOC),
4.00% 02/01/18**#................... 4,850
4,160 Westmoreland County, Pennsylvania,
Industrial Development Authority,
Revenue, (Rhodin Enterprises
Project) Series 1997, AMT, (PNC
Bank, N.A. LOC),
3.95% 04/01/17**#................... 4,160
--------
96,030
--------
RHODE ISLAND -- 0.4%
7,925 Rhode Island, Port Authority and
Economic Development Corporation,
Energy Facilities Revenue Refunding,
(Newport Electric Corporation
Project) Series 1994, (Bank of New
York LOC),
3.80% 09/01/11**.................... 7,925
--------
SOUTH CAROLINA -- 1.5%
5,945 Kershaw County, South Carolina, IDR,
(DeRoyal Textiles, Inc. Project)
Series 1994, AMT, (Sun Trust Bank of
Nashville LOC),
3.90% 12/01/07**#................... 5,945
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 5,460 South Carolina Jobs Economic
Development Authority, Health
Facilities Revenue, (Martha Franks
Baptist Retirement Center Project)
Series 1995, (Wachovia Bank of South
Carolina LOC),
3.80% 04/01/19**#................... $ 5,460
8,000 South Carolina Jobs Economic
Development Authority, IDR, (Abraham
Industries LLC Project) Series 1999,
AMT, (PNC Bank N.A. LOC),
3.95% 05/01/14**.................... 8,000
4,465 South Carolina Jobs Economic
Development Authority, IDR, (Kravet
Fabrics, Inc. Project) Series 1997,
AMT, (Bank of New York LOC),
3.90% 03/01/12**#................... 4,465
9,000 South Carolina Jobs Economic
Development Authority, Revenue,
(Alco-Lite Industries LLC -
TechnoSteel LLC Project) Series
1997, AMT, (Wachovia Bank of South
Carolina LOC),
3.90% 04/01/12**#................... 9,000
1,950 York County, South Carolina, PCR,
(National Rural Utilities
Cooperative, North Carolina
Electricities Project) Series
1984N-1, (CFC Insured),
3.85% 09/15/14**.................... 1,950
--------
34,820
--------
SOUTH DAKOTA -- 1.4%
32,110 South Dakota State Housing Development
Authority, Series 1998 PT-168, AMT,
(Banque Nationale de Paris SBPA),
3.90% 05/01/27**#................... 32,110
--------
TENNESSEE -- 3.1%
3,000 Chattanooga, Tennessee, Industrial
Development Board, Industrial
Revenue, (Seaboard Farms Inc.
Project) Series 1984, (SunTrust Bank
LOC),
3.80% 06/01/04**#................... 3,000
5,250 Chattanooga, Tennessee, Industrial
Development Board, Industrial
Revenue, (Warehouse Row Ltd.
Project) Series 1984, (Credit Suisse
First Boston LOC),
3.80% 12/15/12**#................... 5,250
7,500 Knox County, Tennessee, Health and
Educational Facilities Board,
Educational Facilities Revenue,
(Webb School - Knoxville Project)
Series 1999, (SunTrust Bank
Nashville LOC),
3.80% 03/01/19**#................... 7,500
2,975 Loudon, Tennessee, Water and Sewer
Revenue Refunding, Series 1996,
(Wachovia Bank LOC),
3.80% 09/01/06**#................... 2,975
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
TENNESSEE -- (CONTINUED)
$ 4,755 Metropolitan Government, Nashville and
Davidson County, Tennessee,
Industrial Development Board,
Revenue Refunding, (Nashville
Apartment Properties Project) Series
1995-2, (SunTrust Bank Nashville
LOC),
3.80% 09/01/15**#................... $ 4,755
2,110 Metropolitan Nashville, Tennessee,
Airport Authority, Special
Facilities Revenue, (American
Airlines, Inc. Project) Series
1995A, (Credit Suisse First Boston
LOC),
3.80% 10/01/12**.................... 2,110
3,245 Shelby County, Tennessee, Health
Educational and Housing Facilities
Board, Multi-Family Housing Revenue,
(Flag Manor Project) Series 1995,
AMT, (FHLB Guarantee),
3.85% 01/01/23**#................... 3,245
5,000 Sullivan County, Tennessee, Industrial
Development Board, Revenue, (Modern
Forge Company Project) Series 1990,
AMT, (Northern Trust Company LOC),
3.90% 07/01/10**#................... 5,000
23,500 Tennessee Housing Development Agency,
Revenue, (Home Ownership Program)
Series 1998-3C, AMT, Mandatory
Tender 11/18/99,
3.10% 01/01/31...................... 23,500
12,500 Tennessee Housing Development Agency,
Revenue, Series 1999, AMT,
3.57% 08/15/00...................... 12,500
--------
69,835
--------
TEXAS -- 10.9%
30,530 Alliance Airport Authority, Inc.,
Texas, Special Facilities Revenue,
(Federal Express Project) Series
1999 PA-460, AMT, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
3.80% 02/24/00**##(++)............ 30,530
3,200 Bexar County, Texas, Health Facilities
Development Corporation, Revenue,
(Air Force Retirement Community
Project) Series 1985B, (Rabobank
Nederland LOC),
3.75% 03/01/12**.................... 3,200
7,900 Bexar County, Texas, Health Facilities
Development Corporation, Revenue,
(Army Retirement Community Project)
Series 1985B, (Rabobank Nederland
LOC),
3.75% 07/01/11**.................... 7,900
10,190 Bexar County, Texas, Housing Finance
Corporation, Multi-Family Housing
Revenue, Series 1998 PT-1041, AMT,
(Merrill Lynch Guarantee, Merrill
Lynch SBPA),
4.02% 06/01/35**#(++)............. 10,190
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 1,000 Brazos River, Texas, Harbor Navigation
District, Revenue, (Hoffman - La
Roche Inc. Project) Series 1985,
(Wachovia Bank of North Carolina
LOC),
3.88% 04/01/02**#................... $ 1,000
6,500 Chambers County, Texas, Industrial
Development Corporation, Revenue,
(Ecolochem Inc. Project) Series
1999, AMT, (Wachovia Bank N.A. LOC),
3.90% 03/01/14**#................... 6,500
8,185 El Paso, Texas, Housing Finance
Corporation, Multi-Family Housing
Revenue, (Viva Apartments Project)
Series 1993, AMT, (General Electric
Capital Corporation Guarantee),
3.95% 09/01/23**#................... 8,185
700 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984B-1, (Morgan Guaranty
Trust LOC),
3.80% 12/01/24**.................... 700
400 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984B-3, (Morgan Guaranty
Trust LOC),
3.80% 12/01/24**.................... 400
3,300 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984B-4, (Morgan Guaranty
Trust LOC),
3.80% 12/01/24**.................... 3,300
9,300 Gulf Coast, Texas, Waste Disposal
Authority, PCR, (Amoco Oil Company
Project) Series 1992, (BP Amoco plc
Guarantee),
3.75% 10/01/17**.................... 9,300
2,680 Harris County, Texas, Industrial
Development Corporation, IDR,
(Forged Products, Inc. Project)
Series 1996, AMT, (Bank One Texas,
N.A. LOC),
3.95% 05/01/03**#................... 2,680
2,805 Hillsboro, Texas, Industrial
Development Corporation, Revenue,
(Lamraft, LP Project) Series 1997,
AMT, (First Commercial Bank LOC),
4.05% 07/01/13**.................... 2,805
8,000 Houston, Texas, Independent School
District, GO, Series 1998,
4.00% 07/15/00...................... 8,037
1,200 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines Inc. Project) Series
1984A-5, (Royal Bank of Canada LOC),
3.80% 12/01/14**.................... 1,200
400 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984A-1, (Royal Bank of Canada LOC),
3.80% 12/01/14**.................... 400
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 500 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984A-3, (Royal Bank of Canada LOC),
3.80% 12/01/14**.................... $ 500
7,300 Montgomery County, Texas, IDR,
(Houston Area Research Center
Project) Series 1985, (Banque
Nationale de Paris LOC),
3.90% 12/01/15**.................... 7,300
10,200 Port Development Corporation of Texas,
Marine Terminal Revenue, (Pasadena
Terminal Company, Inc. Project)
Series 1984, (ABN-AMRO Bank N.V.
LOC),
4.00% 12/01/04**#................... 10,200
1,200 Port of Port Arthur, Texas, Navigation
District, Revenue Refunding,
(Texaco, Inc. Project) Series 1994,
3.90% 10/01/24**.................... 1,200
2,300 Sabine River Authority, Texas, PCR
Refunding, (Texas Utilities Electric
Company Project) Series 1996, (AMBAC
Insured, Bank of New York SBPA),
3.80% 03/01/26**.................... 2,300
25,000 Texas Municipal Gas Corporation, Gas
Reserves Revenue, Sr. Lien, Series
1998, (FSA Insured, Societe Generale
SBPA),
3.75% 01/15/23**.................... 25,000
100,000 Texas State, TRAN, Series 1999A,
4.50% 08/31/00...................... 100,711
3,300 Trinity River Authority of Texas, PCR
Refunding, (Texas Utilities Electric
Company Project) Series 1997A, AMT,
(MBIA Insured, Bank of New York
SBPA),
3.80% 07/01/22**.................... 3,300
--------
246,838
--------
UTAH -- 0.9%
14,750 Davis County, Utah, School District,
TAN, Series 1999,
3.60% 06/30/00...................... 14,771
1,800 Murray City, Utah, IDR, (Zevex, Inc.
Project) Series 1996, AMT, (Bank One
Arizona, N.A. LOC),
3.95% 10/01/16**#................... 1,800
3,200 Murray City, Utah, Industrial
Development Authority, Revenue,
(Hunter Douglas Real Property
Project) Series 1994, AMT, (ABN-AMRO
Bank N.V. LOC),
3.90% 09/01/14**#................... 3,200
--------
19,771
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
VIRGINIA -- 0.7%
$ 2,500 Colonial Heights, Virginia, Industrial
Development Authority, Revenue
Refunding, (Philip Morris Companies,
Inc. Project) Series 1992, (Phillip
Morris Inc. Guarantee),
3.85% 03/01/05**#................... $ 2,500
2,000 Fluvanna County, Virginia, Industrial
Development Authority, IDR,
(Edgecomb Metals Company Project)
Series 1984, (Wells Fargo Bank LOC),
3.75% 12/01/09**#................... 2,000
3,900 Greensville County, Virginia,
Industrial Development Authority,
Revenue, (Perdue Farms, Inc.
Project) Series 1996, AMT, (SunTrust
Bank LOC),
3.90% 10/01/06**#................... 3,900
2,000 Spotsylvania County, Virginia,
Industrial Development Authority,
IDR, (Carlisle Corporation Project)
Series 1993, (SunTrust Bank LOC),
3.80% 06/01/08**#................... 2,000
5,500 Virginia State College Building
Authority, Educational Facilities
Revenue, (University of Richmond
Project) Series 1996, (Crestar Bank
SBPA),
3.80% 11/01/26**.................... 5,500
--------
15,900
--------
WEST VIRGINIA -- 1.0%
22,650 West Virginia State Hospital Finance
Authority, Revenue, (St. Mary's
Hospital Project) Series 1987, (Bank
One of West Virginia LOC),
3.83% 10/01/12**#................... 22,650
--------
WISCONSIN -- 1.2%
4,000 Menomonee Falls, Wisconsin, Industrial
Development Authority, IDR, (Jema,
LLC Project) Series 1994, AMT, (Bank
One Milwaukee, N.A. LOC),
3.95% 09/01/14**#................... 4,000
11,400 Wisconsin State Health and Educational
Facilities Authority, Revenue, (St.
Luke's Medical Center Project)
Series 1987, (First National Bank of
Chicago LOC),
3.80% 12/01/17**#................... 11,400
12,000 Wisconsin State Health and Educational
Facilities Authority, Revenue,
(Wheaton Franciscan Services
Project) Series 1997, (Toronto
Dominion Bank LOC),
3.77% 08/15/16**#................... 12,000
--------
27,400
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
WYOMING -- 0.2%
$ 3,700 Sweetwater County, Wyoming, PCR
Refunding, (Pacificorp Project)
Series 1990A, (Credit Suisse First
Boston LOC),
3.65% 07/01/15**.................... $ 3,700
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $2,263,019)..................... 2,263,019
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- -------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.0%++
50 AIM Tax-Exempt Fund............... 50
25 Federated Tax-Exempt Money Market
Fund............................ 25
----------
TOTAL INVESTMENT COMPANIES
(Cost $75)................. 75
----------
TOTAL INVESTMENTS
(Cost $2,263,094*)......... 100.1% 2,263,094
----------
OTHER ASSETS AND
LIABILITIES (NET)........ (0.01)%
Cash.............................. $ 4,045
Receivable for investment
securities sold................. 18,000
Receivable for Fund shares sold... 1,299
Interest receivable............... 11,127
Payable for Fund shares
redeemed........................ (22,487)
Investment advisory fee payable... (318)
Administration fee payable........ (154)
Shareholder servicing and
distribution fees payable....... (105)
Distributions payable............. (5,593)
Payable for investment securities
purchased....................... (7,729)
Accrued Trustees'/Directors' fees
and expenses.................... (87)
Accrued expenses and other
liabilities..................... (673)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)............... (2,675)
----------
NET ASSETS................. 100.0% $2,260,419
==========
NET ASSETS CONSIST OF:
Accumulated net realized gain on
investments sold................ $ 53
Paid-in capital................... 2,260,366
----------
NET ASSETS........................ $2,260,419
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- ----------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
PRIMARY A SHARES:
($1,871,930,667 / 1,872,495,291
shares outstanding)............. $1.00
----
----
PRIMARY B SHARES:
($10,235,583 / 10,228,010 shares
outstanding).................... $1.00
----
----
INVESTOR A SHARES:
($46,859,413 / 46,824,786 shares
outstanding).................... $1.00
----
----
INVESTOR B SHARES:
($202,668,741 / 202,532,392 shares
outstanding).................... $1.00
----
----
INVESTOR C SHARES:
($501,847 / 501,701 shares
outstanding).................... $1.00
----
----
DAILY SHARES:
($128,222,271 / 128,054,872 shares
outstanding).................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 1999. These securities are subject to demand
features of either one, seven or thirty days.
(++) Restricted security (Note 5).
# Securities are not registered under the Securities Act of 1933, as amended.
These securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
++ Amount represents less than 0.1%.
Nations Tax Exempt Fund had the following industry concentrations greater
than 10% at September 30, 1999 (as a percentage of net assets):
Industrial Facilities Revenue 19.1%
Pollution Control Revenue 16.3%
HealthCare Revenue 10.9%
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS FUNDS
Nations Treasury Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 23.9%
U.S. TREASURY NOTES -- 23.9%
$110,000 5.625% 11/30/99(+).................. $ 110,177
80,000 5.875% 02/15/00(+).................. 80,298
95,000 5.500% 02/29/00(+).................. 95,210
30,000 5.500% 03/31/00..................... 30,024
45,000 6.375% 05/15/00(+).................. 45,348
45,000 5.500% 05/31/00(+).................. 45,038
40,000 5.375% 06/30/00(+).................. 39,992
25,000 5.375% 07/31/00(+).................. 24,983
35,000 6.250% 08/31/00..................... 35,248
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $506,318)................... 506,318
-----------
REPURCHASE AGREEMENTS -- 86.8%
530,000 Agreement with ABN AMRO Inc., 5.355%
dated 09/30/99 to be repurchased
at $530,079 on 10/01/99
collateralized by: $42,803 U.S.
Treasury Bonds, 5.250% - 11.250%
due 02/15/15 - 02/15/29; $13,060
U.S. Treasury Notes, 5.625% -
5.750% due 10/31/00 - 05/15/08;
$456,860 U.S. Treasury Strips,
Interest Only, due 02/28/01 -
08/15/22; $27,878 U.S. Treasury
Strips, Principal Only, due
05/15/05 - 08/15/20............... 530,000
103,000 Agreement with Barclays Capital
Inc., 5.300% dated 09/30/99 to be
repurchased at $103,015 on
10/01/99 collateralized by:
$105,061 U.S. Treasury Strips,
Interest Only, due 07/15/02....... 103,000
103,000 Agreement with Bear, Stearns and
Company, Inc., 5.450% dated
09/30/99 to be repurchased at
$103,016 on 10/01/99
collateralized by: $87,958 GNMA,
6.000% - 7.500% due
12/15/28 - 09/15/29; $19,356 GNMA
II, 6.500% - 8.000% due 08/20/28 -
08/20/29.......................... 103,000
268,349 Agreement with Credit Suisse First
Boston Corporation, Interest is
payable monthly. The agreement is
terminable by the Fund daily. The
final maturity date of the
agreement is 10/01/99
collateralized by: $274,877 U.S.
Treasury Notes, 5.250% - 6.500%
due 10/31/00 - 11/15/05++......... 268,349
105,000 Agreement with Deutsche Bank
Securities Inc., 5.300% dated
09/30/99 to be repurchased at
$105,015 on 10/01/99
collateralized by: $20,480 U.S.
Treasury Bonds, 10.375% due
02/15/03; $86,620 U.S. Treasury
Strips, Interest Only, due
11/15/10.......................... 105,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$105,000 Agreement with First Union Capital
Markets, 5.500% dated 09/30/99 to
be repurchased at $105,016 on
10/01/99 collateralized by:
$69,447 GNMA, 5.500% - 9.500% due
09/15/13 - 10/15/29; $37,653 GNMA
II, 5.500% - 6.500% due 04/20/14 -
03/20/29.......................... $ 105,000
95,000 Agreement with Goldman Sachs and
Company, 5.500%, with a final
maturity date of 02/02/00.
Interest receivable as of
September 30, 1999 was $813,
collateralized by: $95,879 GNMA,
5.500% - 9.000% due 09/15/06 -
09/15/29; $1,021 GNMA II, 6.000% -
7.500% due 04/20/14 -
09/20/29(++).................... 95,000
105,000 Agreement with J.P. Morgan
Securities Inc., 5.450% dated
09/30/99 to be repurchased at
$105,016 on 10/01/99
collateralized by: $107,100 GNMA,
7.500% due 10/15/28............... 105,000
2,000 Agreement with Lehman Brothers Inc.,
5.250% dated 09/30/99 to be
repurchased at $2,000 on 10/01/99
collateralized by: $2,040 GNMA,
9.000% due 12/15/17............... 2,000
105,000 Agreement with Merrill Lynch
Government Securities, Inc.,
5.250% dated 09/30/99 to be
repurchased at $105,015 on
10/01/99 collateralized by:
$68,723 U.S. Treasury Bonds,
6.750% due 08/15/26; $38,378 U.S.
Treasury Notes, 5.375% due
07/31/00.......................... 105,000
105,000 Agreement with Morgan Stanley Dean
Witter and Company, 5.350% dated
09/30/99 to be repurchased at
$105,016 on 10/01/99
collateralized by: $108,159 GNMA,
6.500% - 9.000% due
11/15/12 - 8/15/28................ 105,000
105,000 Agreement with S.G. Cowen Securities
Corporation, 5.450% dated 09/30/99
to be repurchased at $105,016 on
10/01/99 collateralized by:
$109,198 GNMA, 6.000% - 8.000% due
06/15/28 - 09/20/29............... 105,000
105,000 Agreement with Westdeutsche
Landesbank, Girozentrale, 5.400%
dated 09/30/99 to be repurchased
at $105,016 on 10/01/99
collateralized by: $59,784 GNMA,
6.000% due 04/15/29; $47,316 GNMA
II, 6.500% due 08/20/29........... 105,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,836,349)................. 1,836,349
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS FUNDS
Nations Treasury Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.9%
33,500 AIM Treasury Fund.................. $ 33,500
6,738 Dreyfus Treasury Cash
Management Fund........... 6,738
-----------
TOTAL INVESTMENT COMPANIES
(Cost $40,238)................... 40,238
-----------
TOTAL INVESTMENTS
(Cost $2,382,905*)........ 112.6% 2,382,905
-----------
OTHER ASSETS AND LIABILITIES
(NET)..................... (12.6)%
Cash............................... $ 179
Receivable for investment
securities sold.................. 1,597,138
Receivable for Fund shares sold.... 325
Interest receivable................ 9,002
Prepaid expenses................... 7
Payable for reverse repurchase
agreements....................... (268,349)
Payable for Fund shares redeemed... (86,762)
Investment advisory fee payable.... (290)
Administration fee payable......... (139)
Shareholder servicing and
distribution fees payable........ (436)
Distributions payable.............. (7,579)
Payable for investment securities
purchased........................ (1,508,249)
Accrued Trustees'/Directors' fees
and expenses..................... (146)
Accrued expenses and other
liabilities...................... (1,038)
-----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ (266,337)
-----------
NET ASSETS.................. 100.0% $ 2,116,568
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................. $ (191)
Paid-in capital.................... 2,116,759
-----------
NET ASSETS......................... $ 2,116,568
===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE
PRIMARY A SHARES:
($584,505,011 / 584,801,363 shares
outstanding)..................... $1.00
----
----
PRIMARY B SHARES:
($12,464,859 / 12,471,523 shares
outstanding)..................... $1.00
----
----
INVESTOR A SHARES:
($1,169,116,305 / 1,169,696,003
shares outstanding).............. $1.00
----
----
INVESTOR B SHARES:
($194,285,678 / 194,399,192 shares
outstanding)..................... $1.00
----
----
INVESTOR C SHARES:
($193,427 / 193,481 shares
outstanding)..................... $1.00
----
----
DAILY SHARES:
($156,002,974 / 156,096,124 shares
outstanding)..................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
(+) Denotes security, or a portion thereof, subject to repurchase under reverse
repurchase agreement as of September 30, 1999 (Note 1).
(++) Restricted security (Note 5).
++ Security segregated as collateral for reverse repurchase agreement.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS FUNDS
Nations Government Money Market Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 107.6%
FEDERAL HOME LOAN BANK (FHLB) -- 86.3%
$ 46,332 Discount note 10/01/99............... $ 46,332
10,000 5.260%+ 10/01/99++................... 9,999
12,000 5.260%+ 10/01/99++................... 12,000
8,000 5.305%+ 10/01/99++................... 7,998
25,000 5.360%+ 10/01/99++................... 24,993
10,000 5.086%+ 10/12/99++................... 9,996
10,000 Discount note 10/20/99............... 9,975
18,000 5.241%+ 10/21/99++................... 17,995
58,000 Discount note 10/22/99............... 57,826
12,000 4.900% 01/14/00...................... 12,000
10,000 4.910% 02/09/00...................... 10,000
10,000 4.950% 02/24/00...................... 9,997
10,000 Discount note 03/01/00............... 9,767
8,000 5.100% 03/03/00...................... 7,999
8,000 5.150% 03/08/00...................... 7,997
8,000 5.050% 04/26/00...................... 7,999
10,000 5.415% 06/14/00...................... 9,989
5,000 5.750% 09/01/00...................... 4,998
5,000 5.875% 09/07/00...................... 4,999
--------
282,859
--------
STUDENT LOAN MARKETING ASSOCIATION
(SLMA) -- 21.3%
25,000 .000%+ 10/04/99++.................... 24,988
10,000 5.556%+ 10/05/99++................... 9,996
25,000 5.556%+ 10/05/99++................... 24,991
10,000 4.930% 02/08/00...................... 10,000
--------
69,975
--------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $352,834).................... 352,834
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $352,834*)............ 107.6% $352,834
--------
OTHER ASSETS AND
LIABILITIES (NET)........... (7.6)%
Receivable for investment securities
sold............................... $ 50,149
Receivable for Fund shares sold...... 4,670
Interest receivable.................. 1,331
Prepaid expenses..................... 13
Payable for Fund shares redeemed..... (3,474)
Investment advisory fee payable...... (34)
Administration fee payable........... (22)
Shareholder servicing and
distribution fees payable.......... (26)
Due to custodian..................... (1)
Distributions payable................ (1,231)
Payable for investment securities
purchased.......................... (76,311)
Accrued Trustees'/Directors' fees and
expenses........................... (30)
Accrued expenses and other
liabilities........................ (94)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................. (25,060)
--------
NET ASSETS.................... 100.0% $327,774
========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................... $ (61)
Paid-in capital...................... 327,835
--------
NET ASSETS........................... $327,774
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
PRIMARY A SHARES:
($234,719,083 / 234,758,743 shares
outstanding)....................... $1.00
----
----
PRIMARY B SHARES:
($684,780 / 685,137 shares
outstanding)....................... $1.00
----
----
INVESTOR A SHARES:
($13,364,263 / 13,366,553 shares
outstanding)....................... $1.00
----
----
INVESTOR B SHARES:
($60,715,001 / 60,729,900 shares
outstanding)....................... $1.00
----
----
INVESTOR C SHARES:
($454,377 / 454,385 shares
outstanding)....................... $1.00
----
----
DAILY SHARES:
($17,836,302 / 17,840,148 shares
outstanding)....................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 1999.
++ Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS FUNDS
Nations Prime Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 24.6%
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 1.8%
National City Bank of Cleveland
$ 50,000 5.706%+ 10/05/99++................... $ 49,976
50,000 5.400%+ 10/29/99++................... 49,961
-----------
99,937
-----------
CERTIFICATES OF DEPOSIT -- YANKEE -- 6.0%
20,000 Bank of Nova Scotia, (New York)
5.330% 03/03/00.................... 19,997
40,000 Bayerische
Hypotheken-und-Vereinsbank, (New
York)
5.075% 02/10/00.................... 39,994
25,000 Commerzbank, (New York)
5.770% 07/03/00.................... 24,993
Deutsche Bank, (New York)
40,000 5.120% 01/10/00...................... 40,000
40,000 5.100% 02/18/00...................... 39,995
National Bank of Canada, (New York)
40,000 5.150% 04/26/00...................... 39,989
35,000 5.730% 06/28/00...................... 34,995
75,000 6.035% 09/25/00...................... 74,979
25,000 United Bank of Switzerland, (New
York)
5.080% 01/13/00.................... 24,998
-----------
339,940
-----------
TIME DEPOSITS -- EURO -- 16.8%
260,000 Canadian Imperial Bank of Commerce
5.625% 10/01/99.................... 260,000
35,000 Commerzbank
5.270% 03/01/00.................... 34,998
150,000 Deutsche Bank
5.688% 10/01/99.................... 150,000
250,000 First National Bank of Chicago
5.680% 10/01/99.................... 250,000
260,946 Westdeutsche Landesbank, Girozentrale
5.750% 10/01/99.................... 260,946
-----------
955,944
-----------
TOTAL BANK OBLIGATIONS
(Cost $1,395,821).................. 1,395,821
-----------
CORPORATE OBLIGATIONS -- 61.8%
COMMERCIAL PAPER -- 33.4%
47,086 Aon Corporation
Discount note 10/28/99............. 46,895
45,000 Bankers Trust Corporation
Discount note 10/20/99............. 44,883
62,985 Barton Capital Corporation
Discount note 10/26/99#............ 62,751
50,000 Bavaria TRR Corporation
Discount note 02/25/00#............ 48,814
59,000 CC (USA) Inc.
Discount note 03/07/00#............ 57,498
28,970 Citibank Capital Markets Assets LLC
Discount note 02/09/00#............ 28,360
200,000 Concord Minutemen Capital Company LLC
Discount note 10/01/99#............ 199,999
Crown Point Capital Company LLC
64,306 Discount note 10/01/99#.............. 64,306
93,864 Discount note 02/25/00#.............. 91,603
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$ 30,000 Eaton Corporation
Discount note 10/01/99#............ $ 30,000
Edison Securitization LLC
25,000 Discount note 02/23/00#.............. 24,412
35,000 Discount note 02/29/00#.............. 34,144
40,000 General Electric Capital Corporation
Discount note 10/04/99............. 39,984
International Securitization
Corporation
15,000 Discount note 10/27/99#.............. 14,948
37,798 Discount note 11/01/99#.............. 37,618
Lehman Brothers Holdings Inc.
50,000 Discount note 10/20/99............... 49,867
50,000 Discount note 02/16/00............... 48,869
25,000 Discount note 02/22/00............... 24,408
Lexington Parker Capital Company LLC
95,020 Discount note 10/01/99#.............. 95,020
75,000 Discount note 02/24/00#.............. 73,205
25,000 Mitsubishi International Corporation
Discount note 01/18/00............. 24,576
MOAT Funding LLC
71,393 Discount note 10/08/99#.............. 71,321
10,000 Discount note 10/13/99#.............. 9,984
48,349 Discount note 10/20/99#.............. 48,216
15,000 PHH Corporation
Discount note 11/10/99............. 14,915
55,000 Republic Industries Funding
Discount note 10/29/99#............ 54,770
18,000 SAFECO Corporation
Discount note 10/26/99#............ 17,935
45,000 SAFECO Credit Company
Discount note 10/13/99............. 44,919
75,000 Salomon Smith Barney Holdings Inc.
Discount note 03/08/00............. 73,079
46,418 Sigma Finance, Inc.
Discount note 10/19/99#............ 46,304
138,024 Tulip Funding Corporation
Discount note 10/27/99#............ 137,484
94,422 Victory Receivables Corporation
Discount note 10/18/99#............ 94,183
75,000 WCP Funding Inc.
Discount note 10/13/99#............ 74,866
64,642 World Omni Vehicle Leasing, Inc.
Discount note 10/18/99#............ 64,477
-----------
1,894,613
-----------
CORPORATE BONDS AND NOTES -- 28.4%
20,000 Abbey National Treasury Services plc
5.050% 04/17/00.................... 19,989
Bear, Stearns and Company, Inc.
50,000 5.811%+ 10/04/99++................... 50,000
50,000 5.764%+ 11/04/99++................... 50,000
40,000 5.150% 01/25/00...................... 40,000
40,000 5.170% 02/10/00...................... 40,000
40,000 5.180% 02/18/00...................... 40,000
40,000 5.340% 03/02/00...................... 40,000
25,000 5.750% 06/28/00...................... 25,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS FUNDS
Nations Prime Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Credit Suisse First Boston, Inc.
$ 30,000 5.380%+ 10/09/99++##................. $ 29,997
15,000 5.613%+ 12/21/99++##................. 15,000
35,000 5.613%+ 12/21/99++##................. 35,000
First Union National Bank
32,000 5.450%+ 10/01/99++................... 32,000
90,000 5.560%+ 10/01/99++................... 90,000
50,000 5.640%+ 10/01/99++................... 50,000
50,000 5.563%+ 11/17/99++................... 50,000
40,000 5.300% 03/01/00...................... 40,000
75,000 Ford Motor Credit Company
5.435%+ 11/18/99++................. 74,945
50,000 General Electric Capital Corporation
(MTN)
5.390%+ 11/12/99++................. 50,000
30,000 General Motors Acceptance Corporation
5.750% 07/28/00.................... 29,992
Goldman Sachs Group, Inc.
100,000 5.510%+ 10/07/99++................... 100,000
100,000 5.400%+ 10/10/99++(+)................ 100,000
35,000 5.280% 02/24/00##.................... 35,000
25,000 6.100% 08/21/00...................... 25,000
27,000 GTE Corporation
5.546%+ 12/13/99++................. 26,988
25,000 Lehman Brothers Holdings Inc.
6.182% 08/04/00.................... 25,000
Liberty Lighthouse Funding Company
LLC
25,000 5.450%+ 10/01/99++##................. 25,000
35,000 5.260% 02/10/00##.................... 35,000
25,000 Merrill Lynch and Company
5.460%+ 10/01/99++................. 25,000
Morgan Stanley Dean Witter and
Company
50,000 5.510%+ 10/01/99++................... 50,000
50,000 5.610%+ 12/15/99++................... 50,000
50,000 Northern Rock plc
5.503%+ 12/14/99++##............... 50,000
Sigma Finance, Inc.
50,000 5.465%+ 10/15/99++##................. 50,000
40,000 5.190% 02/18/00##.................... 40,000
40,000 5.220% 02/23/00##.................... 40,000
40,000 5.330% 03/01/00##.................... 40,000
25,000 5.440% 05/24/00##.................... 25,000
15,000 5.800% 07/24/00##.................... 15,000
50,000 SMM Trust Series 1999-B
5.449% 03/15/00##(++).............. 50,000
-----------
1,608,911
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,503,524).................. 3,503,524
-----------
FUNDING AGREEMENTS -- 12.6%
Allstate Life Insurance
Company
25,000 5.470%+ 10/01/99++(++)............... 25,000
25,000 5.470%+ 10/01/99++(++)............... 25,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
FUNDING AGREEMENTS -- (CONTINUED)
Anchor National Life Insurance
Company
$ 25,000 5.409%+ 10/01/99++(++)............... $ 25,000
50,000 5.560%+ 10/01/99++(++)............... 50,000
Commonwealth Life Insurance Company
Inc.
50,000 5.550%+ 10/01/99++(++)............... 50,000
62,000 5.580%+ 10/01/99++(++)............... 62,000
10,000 5.580%+ 10/01/99++(++)............... 10,000
50,000 First Allmerica Financial Life
Insurance Company
5.550%+ 11/24/99++(++)............. 50,000
60,000 Life Insurance Company of Georgia
5.449%+ 10/01/99++(++)............. 60,000
Life Insurance Company of Virginia
25,000 5.292%+ 10/01/99++(++)............... 25,000
25,000 5.292%+ 10/01/99++(++)............... 25,000
50,000 5.302%+ 10/01/99++(++)............... 50,000
Metropolitan Life Insurance Company
45,000 5.590%+ 10/01/99++(++)............... 45,000
45,000 5.590%+ 10/01/99++(++)............... 45,000
50,000 New York Life Insurance Company
5.379%+ 10/01/99++(++)............. 50,000
Peoples Security Life Insurance
Company
20,000 5.480%+ 10/01/99++(++)............... 20,000
20,000 5.580%+ 10/01/99++(++)............... 20,000
50,000 Sun Life Insurance Company of America
5.439%+ 10/01/99++(++)............. 50,000
25,000 Travelers Life Insurance Company
5.425%+ 10/01/99++(++)............. 25,000
-----------
TOTAL FUNDING AGREEMENTS
(Cost $712,000).................... 712,000
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- --------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.8%
29,799 AIM Liquid Asset Portfolio.......... 29,799
2,917 AIM Prime Fund...................... 2,917
11,615 Dreyfus Cash Management Plus Fund... 11,615
----------
TOTAL INVESTMENT COMPANIES
(Cost $44,331).................... 44,331
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS FUNDS
Nations Prime Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $5,655,676*)......... 99.8% $5,655,676
----------
OTHER ASSETS AND
LIABILITIES (NET).......... 0.2%
Cash................................ $ 41
Receivable for investment securities
sold.............................. 1,330,662
Receivable for Fund shares sold..... 43,362
Interest receivable................. 33,876
Prepaid expenses.................... 11
Payable for Fund shares redeemed.... (27,103)
Investment advisory fee payable..... (869)
Administration fee payable.......... (387)
Shareholder servicing and
distribution fees payable......... (1,009)
Distributions payable............... (15,367)
Payable for investment securities
purchased......................... (1,347,824)
Accrued Trustees'/Directors' fees
and expenses...................... (217)
Accrued expenses and other
liabilities....................... (1,257)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................. 13,919
----------
NET ASSETS................... 100.0% $5,669,595
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold.................. $ (667)
Paid-in capital..................... 5,670,262
----------
NET ASSETS.......................... $5,669,595
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
- ------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
PRIMARY A SHARES:
($2,710,520,106 / 2,711,011,006
shares outstanding)............... $1.00
----
----
PRIMARY B SHARES:
($14,169,597 / 14,173,321 shares
outstanding)...................... $1.00
----
----
INVESTOR A SHARES:
($680,898,122 / 681,004,892 shares
outstanding)...................... $1.00
----
----
INVESTOR B SHARES:
($670,519,691 / 670,633,342 shares
outstanding)...................... $1.00
----
----
INVESTOR C SHARES:
($16,241,441 / 16,243,452 shares
outstanding)...................... $1.00
----
----
DAILY SHARES:
($1,554,785,532 / 1,555,189,489
shares outstanding)............... $1.00
----
----
MARSICO SHARES:
($22,460,569 / 22,460,701 shares
outstanding)...................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 1999. These securities are subject to demand
features of either one, seven, thirty, ninety or one hundred eighty days.
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 1999.
++ Reset date. Interest rates reset either daily, weekly or monthly.
(++) Restricted security (Note 5).
(+) Security subject to a demand feature which allows the fund to put the
security back to the issuer within 7 to 180 calendar days.
# Securities are not registered under the Securities Act of 1933, as amended.
These securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS FUNDS
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance
Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CFC Cooperative Finance Corporation
FGIC Financial Guaranty Insurance
Corporation
FHLB Federal Home Loan Bank
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GO General Obligation
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MTN Medium Term Note
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
SLMA Student Loan Marketing Association
TAN Tax Anticipation Note
TRAN Tax and Revenue Anticipation Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 1999
<TABLE>
GOVERNMENT
TAX EXEMPT TREASURY MONEY MARKET PRIME
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest............................................ $ 42,069 $ 56,379 $ 9,645 $ 170,083
-------------- -------------- -------------- --------------
EXPENSES:
Investment advisory fee............................. 3,904 2,269 664 6,573
Administration fee.................................. 1,260 1,132 194 3,278
Transfer agent fees................................. 234 230 37 637
Custodian fees...................................... 74 94 16 213
Legal and audit fees................................ 81 78 44 151
Registration and filing fees........................ 44 45 39 59
Trustees'/Directors' fees and expenses.............. 8 8 8 8
Other............................................... 173 129 47 280
-------------- -------------- -------------- --------------
Subtotal........................................ 5,778 3,985 1,049 11,199
Shareholder servicing and distribution fees:
Primary B Shares.................................. 13 18 2 24
Investor A Shares................................. 82 1,997 21 1,259
Investor B Shares................................. 392 412 146 1,220
Investor C Shares................................. --* --* --* 15
Daily Shares...................................... 847 680 114 8,009
Marsico Shares.................................... -- -- -- 26
-------------- -------------- -------------- --------------
Total expenses.................................. 7,112 7,092 1,332 21,752
Fees waived by investment adviser, administrator
and/or distributor................................ (2,398) (885) (540) (3,939)
Fees reduced by credits allowed by the custodian.... --* (7) --* (20)
-------------- -------------- -------------- --------------
Net expenses.................................... 4,714 6,200 792 17,793
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME............................... 37,355 50,179 8,853 152,290
-------------- -------------- -------------- --------------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS............. 2 -- -- (42)
-------------- -------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ 37,357 $ 50,179 $ 8,853 $ 152,248
============== ============== ============== ==============
</TABLE>
- ---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
TAX EXEMPT
---------------------------------
SIX MONTHS
ENDED
9/30/99 YEAR ENDED
(UNAUDITED) 3/31/99
---------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 37,355 $ 82,678
Net realized gain/(loss) on investments..................... 2 165
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 37,357 82,843
Distributions to shareholders from net investment income:
Primary A Shares.......................................... (30,328) (65,819)
Primary B Shares.......................................... (142) (273)
Investor A Shares......................................... (627) (3,650)
Investor B Shares......................................... (3,173) (7,511)
Investor C Shares......................................... (4) (964)
Daily Shares.............................................. (3,080) (4,469)
Marsico Shares............................................ -- --
Net increase/(decrease) in net assets from Fund share
transactions.............................................. (528,558) 277,351
-------------- --------------
Net increase/(decrease) in net assets....................... (528,555) 277,508
NET ASSETS:
Beginning of period......................................... 2,788,974 2,511,466
-------------- --------------
End of period............................................... $ 2,260,419 $ 2,788,974
============== ==============
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................ $ -- $ --
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
TREASURY GOVERNMENT MONEY MARKET PRIME
------------------------------- ------------------------------- -------------------------------
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>
$ 50,179 $ 130,986 $ 8,853 $ 19,374 $ 152,290 $ 336,404
-- (9) -- 2 (42) 17
-------------- -------------- -------------- -------------- -------------- --------------
50,179 130,977 8,853 19,376 152,248 336,421
(15,923) (35,810) (6,027) (12,220) (68,584) (144,712)
(323) (715) (31) (82) (448) (1,010)
(24,672) (70,376) (266) (991) (16,312) (87,660)
(5,207) (15,860) (1,847) (4,572) (16,208) (34,889)
(4) (182) (7) (65) (286) (2,729)
(4,050) (8,054) (675) (1,457) (49,962) (65,322)
-- -- -- -- (489) (83)
(328,042) (276,945) (88,677) 86,342 (1,746,797) 1,815,548
-------------- -------------- -------------- -------------- -------------- --------------
(328,042) (276,965) (88,677) 86,331 (1,746,838) 1,815,564
2,444,610 2,721,575 416,451 330,120 7,416,433 5,600,869
-------------- -------------- -------------- -------------- -------------- --------------
$ 2,116,568 $ 2,444,610 $ 327,774 $ 416,451 $ 5,669,595 $ 7,416,433
============== ============== ============== ============== ============== ==============
-- -- $ -- $ -- $ -- $ (1)
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS FUNDS
STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended September 30, 1999
<TABLE>
<CAPTION>
TREASURY
(000)
--------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES:
Investment income received................................ $ 59,623
Payment of operating expenses............................. (5,631)
Net proceeds from reverse repurchase agreements
outstanding............................................. (261,619)
Net purchases of short-term investments................... 784,806
--------------
Cash provided by operating and investing activities......... $ 577,179
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Fund shares sold............................ 2,075,266
Payment on shares redeemed................................ (2,612,086)
Distributions paid*....................................... (40,351)
--------------
Cash used by financing activities........................... (577,171)
--------------
Increase in cash.......................................... $ 8
Cash at beginning of period............................... 171
--------------
Cash at end of period..................................... $ 179
==============
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from operations........ $ 50,179
Decrease in investments................................... $ 875,625
Decrease in payable for reverse repurchase agreement
transactions............................................ (261,619)
Decrease in interest and dividends receivable............. 1,313
Increase in receivable for investments sold............... (1,597,138)
Increase in payable for investments sold.................. 1,508,249
Decrease in other assets.................................. 47
Increase in accrued expenses and other payables........... 523
--------------
Cash provided by operating and investing activities......... $ 577,179
==============
</TABLE>
- ---------------
* Non-cash activities include reinvestment of dividends of $6,754.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY*
<TABLE>
<CAPTION>
TAX EXEMPT TREASURY
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999 (UNAUDITED) MARCH 31, 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold..................................... $ 607,353 $ 2,239,774 $ 250,350 $ 745,038
Issued in exchange for Institutional
Shares of Emerald (Note 8):
Tax-Exempt Fund........................ -- 111,309 -- --
Treasury Fund.......................... -- -- -- 280,819
Issued in exchange for assets of
Nationsbank Common Trust Municipal Temp
Fund (Note 8).......................... -- 52,112 -- --
Issued as reinvestment of dividends...... 212 1,384 35 68
Redeemed................................. (867,785) (2,273,641) (432,336) (874,634)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $(260,220) $ 130,938 $ (181,951) $ 151,291
========= =========== =========== ===========
PRIMARY B SHARES:
Sold..................................... $ 20,765 $ 35,307 $ 13,342 $ 49,612
Issued as reinvestment of dividends...... 1 1 -- --
Redeemed................................. (20,766) (33,799) (21,192) (41,055)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ --** $ 1,509 $ (7,850) $ 8,557
========= =========== =========== ===========
INVESTOR A SHARES:
Sold..................................... $ 29,981 $ 515,758 $ 1,391,899 $ 3,421,643
Issued in exchange for Service Shares of
Emerald (Note 8):
Tax-Exempt Fund........................ -- 551 -- --
Treasury Fund.......................... -- -- -- 518,802
Issued as reinvestment of dividends...... 620 3,340 1,510 7,103
Redeemed................................. (37,434) (637,759) (1,400,526) (4,132,631)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (6,833) $ (118,110) $ (7,117) $ (185,083)
========= =========== =========== ===========
INVESTOR B SHARES:
Sold..................................... $ 234,316 $ 718,176 $ 300,266 $ 2,050,523
Issued as reinvestment of dividends...... 2,316 6,745 2,423 8,372
Redeemed................................. (293,433) (715,284) (370,243) (2,343,796)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (56,801) $ 9,637 $ (67,554) $ (284,901)
========= =========== =========== ===========
INVESTOR C SHARES:
Sold..................................... $ 370 $ 77,602 $ 28 $ 8,917
Issued as reinvestment of dividends...... 1 894 4 175
Redeemed................................. (87) (145,795) (14) (17,212)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ 284 $ (67,299) $ 18 $ (8,120)
========= =========== =========== ===========
DAILY SHARES:
Sold..................................... $ 141,743 $ 579,655 $ 94,757 $ 668,946
Issued in exchange for Retail Shares of
Emerald (Note 8):
Tax-Exempt Fund........................ -- 58,840 -- --
Treasury Fund.......................... -- -- -- 75,614
Issued as reinvestment of dividends...... 3,091 4,438 2,782 5,812
Redeemed................................. (349,822) (322,257) (161,127) (709,061)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $(204,988) $ 320,676 $ (63,588) $ 41,311
========= =========== =========== ===========
Total net increase/(decrease)............ $(528,558) $ 277,351 $ (328,042) $ (276,945)
========= =========== =========== ===========
</TABLE>
- ---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
** Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET PRIME
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999 (UNAUDITED) MARCH 31, 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold..................................... $ 122,076 $ 799,733 $ 1,306,220 $ 2,884,029
Issued in exchange for Institutional
Shares of Emerald Prime Fund (Note
8)..................................... -- -- -- 351,001
Issued as reinvestment of dividends...... 27 14 1,123 3,278
Redeemed................................. (163,061) (741,571) (1,750,176) (2,937,008)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (40,958) $ 58,176 $ (442,833) $ 301,300
========= =========== =========== ===========
PRIMARY B SHARES:
Sold..................................... $ 6,552 $ 6,527 $ 61,614 $ 184,200
Issued as reinvestment of dividends...... -- -- -- --
Redeemed................................. (7,166) (7,041) (129,093) (110,683)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (614) $ (514) $ (67,479) $ 73,517
========= =========== =========== ===========
INVESTOR A SHARES:
Sold..................................... $ 47,676 $ 88,851 $ 1,079,006 $ 6,032,561
Issued in exchange for Service Shares of
Emerald Prime Fund (Note 8)............ -- -- -- 1,222,395
Issued as reinvestment of dividends...... 252 920 15,798 60,480
Redeemed................................. (48,487) (99,654) (1,109,604) (8,326,879)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (559) $ (9,883) $ (14,800) $(1,011,443)
========= =========== =========== ===========
INVESTOR B SHARES:
Sold..................................... $ 122,814 $ 1,221,157 $ 1,242,396 $ 3,900,160
Issued as reinvestment of dividends...... 1,507 3,747 12,667 31,563
Redeemed................................. (145,686) (1,219,880) (1,323,211) (4,037,571)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (21,365) $ 5,024 $ (68,148) $ (105,848)
========= =========== =========== ===========
INVESTOR C SHARES:
Sold..................................... $ 428 $ 1,991 $ 9,265 $ 105,867
Issued as reinvestment of dividends...... 7 62 257 2,522
Redeemed................................. (23) (5,380) (4,318) (193,462)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ 412 $ (3,327) $ 5,204 $ (85,073)
========= =========== =========== ===========
DAILY SHARES:
Sold..................................... $ 81,475 $ 630,871 $ 655,006 $ 3,067,562
Issued in exchange for Retail Shares of
Emerald Prime Fund (Note 8)............ -- -- -- 601,006
Issued as reinvestment of dividends...... 678 1,438 50,067 64,860
Redeemed................................. (107,746) (595,443) (1,868,304) (1,108,303)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ (25,593) $ 36,866 $(1,163,231) $ 2,625,125
========= =========== =========== ===========
MARSICO SHARES:+
Sold..................................... $ -- $ -- $ 77,862 $ 22,087
Issued as reinvestment of dividends...... -- -- 400 23
Redeemed................................. -- -- (73,772) (4,140)
--------- ----------- ----------- -----------
Net increase/(decrease).................. $ -- $ -- $ 4,490 $ 17,970
========= =========== =========== ===========
Total net increase/(decrease)............ $ (88,677) $ 86,342 $(1,746,797) $ 1,815,548
========= =========== =========== ===========
</TABLE>
- ---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
+ The Marsico Shares commenced operations on January 26, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
[This page intentionally left blank.]
31
<PAGE> 36
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
--------------------------------------------
<S> <C> <C> <C>
TAX EXEMPT
PRIMARY A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0152 $(0.0152)
Year ended 3/31/1999........................................ 1.00 0.0312 (0.0312)
Year ended 3/31/1998........................................ 1.00 0.0345 (0.0345)
Year ended 3/31/1997........................................ 1.00 0.0324 (0.0324)
Period ended 3/31/1996(a)................................... 1.00 0.0112 (0.0112)
Year ended 11/30/1995....................................... 1.00 0.0361 (0.0361)
Year ended 11/30/1994....................................... 1.00 0.0257 (0.0257)
PRIMARY B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0140 $(0.0140)
Year ended 3/31/1999........................................ 1.00 0.0288 (0.0288)
Year ended 3/31/1998........................................ 1.00 0.0320 (0.0320)
Year ended 3/31/1997........................................ 1.00 0.0300 (0.0300)
Period ended 3/31/1996(a)................................... 1.00 0.0104 (0.0104)
Year ended 11/30/1995....................................... 1.00 0.0335 (0.0335)
Period ended 11/30/1994*.................................... 1.00 0.0116 (0.0116)
INVESTOR A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0135 $(0.0135)
Year ended 3/31/1999........................................ 1.00 0.0278 (0.0278)
Year ended 3/31/1998........................................ 1.00 0.0316 (0.0316)
Year ended 3/31/1997........................................ 1.00 0.0300 (0.0300)
Period ended 3/31/1996(a)................................... 1.00 0.0104 (0.0104)
Year ended 11/30/1995....................................... 1.00 0.0335 (0.0335)
Year ended 11/30/1994....................................... 1.00 0.0231 (0.0231)
INVESTOR B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0142 $(0.0142)
Year ended 3/31/1999........................................ 1.00 0.0293 (0.0293)
Year ended 3/31/1998........................................ 1.00 0.0325 (0.0325)
Year ended 3/31/1997........................................ 1.00 0.0307 (0.0307)
Period ended 3/31/1996(a)................................... 1.00 0.0106 (0.0106)
Year ended 11/30/1995....................................... 1.00 0.0342 (0.0342)
Period ended 11/30/1994*.................................... 1.00 0.0141 (0.0141)
INVESTOR C SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0140 $(0.0140)
Year ended 3/31/1999........................................ 1.00 0.0288 (0.0288)
Year ended 3/31/1998........................................ 1.00 0.0323 (0.0323)
Year ended 3/31/1997........................................ 1.00 0.0311 (0.0311)
Period ended 3/31/1996(a)................................... 1.00 0.0107 (0.0107)
Year ended 11/30/1995....................................... 1.00 0.0346 (0.0346)
Period ended 11/30/1994*.................................... 1.00 0.0203 (0.0203)
DAILY SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0127 $(0.0127)
Year ended 3/31/1999........................................ 1.00 0.0263 (0.0263)
Year ended 3/31/1998........................................ 1.00 0.0295 (0.0295)
Year ended 3/31/1997........................................ 1.00 0.0270 (0.0270)
Period ended 3/31/1996(a)................................... 1.00 0.0090 (0.0090)
Period ended 11/30/1995*.................................... 1.00 0.0243 (0.0243)
</TABLE>
- ---------------
* Tax Exempt Primary B, Investor B, Investor C and Daily Shares commenced
operations on June 16, 1994, May 17, 1994, March 7, 1994 and February 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.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
(c) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 1.53% $1,871,931 0.30%+(c) 3.04%+ 0.46%+(c)
1.00 3.17 2,132,148 0.30(b) 3.11 0.55(b)
1.00 3.48 2,001,083 0.30(b) 3.43 0.56(b)
1.00 3.29 1,184,313 0.30 3.25 0.55
1.00 1.12 1,078,764 0.30+ 3.35+ 0.58+
1.00 3.68 905,125 0.30 3.62 0.57
1.00 2.60 820,677 0.27 2.59 0.59
$1.00 1.40% $ 10,236 0.55%+(c) 2.79%+ 0.71%+(c)
1.00 2.91 10,236 0.55(b) 2.86 0.80(b)
1.00 3.22 8,726 0.55(b) 3.18 0.81(b)
1.00 3.04 13,151 0.55 3.00 0.80
1.00 1.04 9,370 0.55+ 3.10+ 0.83+
1.00 3.39 11,666 0.55 3.37 0.82
1.00 1.17 18,207 0.52+ 2.34+ 0.84+
$1.00 1.35% $ 46,859 0.65%+(c) 2.69%+ 0.81%+(c)
1.00 2.81 53,693 0.65(b) 2.76 0.90(b)
1.00 3.20 171,786 0.58(b) 3.15 0.84(b)
1.00 3.04 145,337 0.55 3.00 0.80
1.00 1.04 128,414 0.55+ 3.10+ 0.83+
1.00 3.40 126,207 0.55 3.37 0.82
1.00 2.36 151,714 0.52 2.34 0.84
$1.00 1.43% $ 202,669 0.50%+(c) 2.84%+ 0.81%+(c)
1.00 2.97 259,469 0.50(b) 2.91 0.90(b)
1.00 3.30 249,819 0.50(b) 3.23 0.76(b)
1.00 3.11 228,601 0.50 3.05 0.75
1.00 1.06 132,914 0.50+ 3.15+ 0.78+
1.00 3.47 86,374 0.50 3.42 0.77
1.00 1.43 3 0.47+ 2.39+ 0.79+
$1.00 1.40% $ 502 0.55%+(c) 2.79%+ 0.71%+(c)
1.00 2.91 218 0.55(b) 2.86 0.80(b)
1.00 3.26 67,511 0.48(b) 3.25 0.74(b)
1.00 3.15 62,761 0.45 3.10 0.70
1.00 1.07 66,743 0.45+ 3.20+ 0.73+
1.00 3.52 41,409 0.45 3.47 0.72
1.00 2.05 25,704 0.42+ 2.44+ 0.74+
$1.00 1.28% $ 128,222 0.80%+(c) 2.54%+ 1.16%+(c)
1.00 2.66 333,210 0.80(b) 2.61 1.25(b)
1.00 2.98 12,541 0.80(b) 2.93 1.06(b)
1.00 2.73 2,334 0.80 2.75 1.05
1.00 0.91 2 0.69+ 2.96+ 0.97+
1.00 2.61 2 0.45+ 3.47+ 0.72+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
--------------------------------------------
<S> <C> <C> <C>
TREASURY
PRIMARY A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0234 $(0.0234)
Year ended 3/31/1999........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1998........................................ 1.00 0.0531 (0.0531)
Year ended 3/31/1997........................................ 1.00 0.0509 (0.0509)
Period ended 3/31/1996(a)................................... 1.00 0.0458 (0.0458)#
Year ended 5/31/1995........................................ 1.00 0.0494 (0.0494)#
Year ended 5/31/1994........................................ 1.00 0.0297 (0.0297)
PRIMARY B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0222 $(0.0222)
Year ended 3/31/1999........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1998........................................ 1.00 0.0506 (0.0506)
Year ended 3/31/1997........................................ 1.00 0.0484 (0.0484)
Period ended 3/31/1996(a)................................... 1.00 0.0437 (0.0437)#
Period ended 5/31/1995*..................................... 1.00 0.0449 (0.0449)#
INVESTOR A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0217 $(0.0217)
Year ended 3/31/1999........................................ 1.00 0.0464 (0.0464)
Year ended 3/31/1998........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1997........................................ 1.00 0.0474 (0.0474)
Period ended 3/31/1996(a)................................... 1.00 0.0429 (0.0429)#
Year ended 5/31/1995........................................ 1.00 0.0457 (0.0457)#
Year ended 5/31/1994........................................ 1.00 0.0262 (0.0262)
INVESTOR B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0222 $(0.0222)
Year ended 3/31/1999........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1998........................................ 1.00 0.0506 (0.0506)
Year ended 3/31/1997........................................ 1.00 0.0484 (0.0484)
Period ended 3/31/1996(a)................................... 1.00 0.0437 (0.0437)#
Year ended 5/31/1995........................................ 1.00 0.0468 (0.0468)#
Period ended 5/31/1994*..................................... 1.00 0.0015 (0.0015)
INVESTOR C SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0222 $(0.0222)
Year ended 3/31/1999........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1998........................................ 1.00 0.0506 (0.0506)
Year ended 3/31/1997........................................ 1.00 0.0484 (0.0484)
Period ended 3/31/1996(a)................................... 1.00 0.0437 (0.0437)#
Year ended 5/31/1995........................................ 1.00 0.0468 (0.0468)#
Period ended 5/31/1994*..................................... 1.00 0.0019 (0.0019)
DAILY SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0209 $(0.0209)
Year ended 3/31/1999........................................ 1.00 0.0449 (0.0449)
Year ended 3/31/1998........................................ 1.00 0.0481 (0.0481)
Year ended 3/31/1997........................................ 1.00 0.0455 (0.0455)
Period ended 3/31/1996(a)................................... 1.00 0.0404 (0.0404)
Period ended 5/31/1995*..................................... 1.00 0.0167 (0.0167)
</TABLE>
- ---------------
* Treasury Primary B, Investor B, Investor C and Daily Shares commenced
operations on June 16, 1994, May 16, 1994, May 11, 1994 and February 9,
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 from net realized gains of less than $0.0001
per share.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.37% $ 584,505 0.30%+(b) 4.68%+ 0.35%+(b)
1.00 5.10 766,456 0.30(b) 5.01 0.35(b)
1.00 5.43 615,185 0.30 5.31 0.35
1.00 5.22 1,345,585 0.30 5.09 0.35
1.00 4.67 821,030 0.30+ 5.52+ 0.37+
1.00 5.05 2,896,868 0.30 4.99 0.35
1.00 2.99 2,679,992 0.30 2.97 0.36
$1.00 2.24% $ 12,465 0.55%+(b) 4.43%+ 0.60%+(b)
1.00 4.84 20,315 0.55(b) 4.76 0.60(b)
1.00 5.18 11,764 0.55 5.06 0.60
1.00 4.96 55,170 0.55 4.84 0.60
1.00 4.46 47,488 0.55+ 5.27+ 0.62+
1.00 4.56 56,815 0.55+ 4.74+ 0.60+
$1.00 2.19% $1,169,116 0.65%+(b) 4.33%+ 0.70%+(b)
1.00 4.74 1,176,233 0.65(b) 4.66 0.70(b)
1.00 5.06 1,361,214 0.65 4.96 0.70
1.00 4.85 719,199 0.65 4.74 0.70
1.00 4.36 89,584 0.65+ 5.17+ 0.72+
1.00 4.65 107,475 0.67 4.62 0.72
1.00 2.67 74,195 0.65 2.62 0.71
$1.00 2.24% $ 194,286 0.55%+(b) 4.43%+ 0.70%+(b)
1.00 4.84 261,840 0.55(b) 4.76 0.70(b)
1.00 5.18 546,833 0.55 5.06 0.60
1.00 4.96 973,297 0.55 4.84 0.60
1.00 4.46 1,525,048 0.55+ 5.27+ 0.62+
1.00 4.76 52,564 0.56 4.73 0.61
1.00 0.14 2 0.55+ 2.72+ 0.61+
$1.00 2.24% $ 193 0.55%+(b) 4.43%+ 0.60%+(b)
1.00 4.84 175 0.55(b) 4.76 0.60(b)
1.00 5.18 8,295 0.55 5.06 0.60
1.00 4.96 13,868 0.55 4.84 0.60
1.00 4.46 8,783 0.55+ 5.27+ 0.62+
1.00 4.76 6,373 0.56 4.73 0.61
1.00 0.19 191 0.55+ 2.72+ 0.61+
$1.00 2.11% $ 156,003 0.80%+(b) 4.18%+ 1.05%+(b)
1.00 4.58 219,592 0.80(b) 4.51 1.05(b)
1.00 4.92 178,284 0.80 4.81 0.85
1.00 4.66 16,323 0.80 4.59 0.85
1.00 4.09 2 0.64+ 5.18+ 0.71+
1.00 1.67 2 0.55+ 4.74+ 0.60+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-------------------------------------
<S> <C> <C> <C>
GOVERNMENT MONEY MARKET
PRIMARY A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0235 $(0.0235)
Year ended 3/31/1999........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1998........................................ 1.00 0.0524 (0.0524)
Year ended 3/31/1997........................................ 1.00 0.0503 (0.0503)
Period ended 3/31/1996(a)................................... 1.00 0.0173 (0.0173)
Year ended 11/30/1995....................................... 1.00 0.0558 (0.0558)
Year ended 11/30/1994....................................... 1.00 0.0375 (0.0375)#
PRIMARY B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0222 $(0.0222)
Year ended 3/31/1999........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1998........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1997........................................ 1.00 0.0478 (0.0478)
Period ended 3/31/1996(a)................................... 1.00 0.0165 (0.0165)
Year ended 11/30/1995....................................... 1.00 0.0533 (0.0533)
Period ended 11/30/1994*.................................... 1.00 0.0200 (0.0200)#
INVESTOR A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0217 $(0.0217)
Year ended 3/31/1999........................................ 1.00 0.0462 (0.0462)
Year ended 3/31/1998........................................ 1.00 0.0489 (0.0489)
Year ended 3/31/1997........................................ 1.00 0.0468 (0.0468)
Period ended 3/31/1996(a)................................... 1.00 0.0162 (0.0162)
Year ended 11/30/1995....................................... 1.00 0.0522 (0.0522)
Year ended 11/30/1994....................................... 1.00 0.0340 (0.0340)#
INVESTOR B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0222 $(0.0222)
Year ended 3/31/1999........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1998........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1997........................................ 1.00 0.0478 (0.0478)
Period ended 3/31/1996(a)................................... 1.00 0.0165 (0.0165)
Year ended 11/30/1995....................................... 1.00 0.0532 (0.0532)
Period ended 11/30/1994*.................................... 1.00 0.0222 (0.0222)#
INVESTOR C SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0222 $(0.0222)
Year ended 3/31/1999........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1998........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1997........................................ 1.00 0.0478 (0.0478)
Period ended 3/31/1996(a)................................... 1.00 0.0165 (0.0165)
Year ended 11/30/1995....................................... 1.00 0.0532 (0.0532)
Period ended 11/30/1994*.................................... 1.00 0.0290 (0.0290)#
DAILY SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0210 $(0.0210)
Year ended 3/31/1999........................................ 1.00 0.0447 (0.0447)
Year ended 3/31/1998........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1997........................................ 1.00 0.0453 (0.0453)
Period ended 3/31/1996(a)................................... 1.00 0.0157 (0.0157)
Period ended 11/30/1995*.................................... 1.00 0.0418 (0.0418)
</TABLE>
- ---------------
* Government Money Market Primary B, Investor B, Investor C and Daily Shares
commenced operations on June 16, 1994, May 17, 1994, March 21, 1994 and
February 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 from net realized gains of less than $0.0001
per share.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET
END OF PERIOD RETURN++ (000) ASSETS ASSETS ASSETS
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.37% $234,719 0.30%+(b) 4.68%+ 0.54%+(b)
1.00 5.08 275,677 0.30(b) 4.97 0.58(b)
1.00 5.39 217,506 0.30 5.25 0.59
1.00 5.18 299,395 0.30 5.03 0.57
1.00 1.74 336,771 0.30+ 5.20+ 0.59+
1.00 5.72 332,895 0.30 5.58 0.57
1.00 3.84 432,729 0.30 3.79 0.59
$1.00 2.24% $ 685 0.55%+(b) 4.43%+ 0.79%+(b)
1.00 4.82 1,298 0.55(b) 4.72 0.83(b)
1.00 5.12 1,812 0.55 5.00 0.84
1.00 4.93 19,450 0.55 4.78 0.82
1.00 1.66 31,581 0.55+ 4.95+ 0.84+
1.00 5.45 27,122 0.55 5.33 0.82
1.00 2.02 72,747 0.55+ 3.54+ 0.84+
$1.00 2.19% $ 13,364 0.65%+(b) 4.33%+ 0.89%+(b)
1.00 4.72 13,924 0.65(b) 4.62 0.93(b)
1.00 5.01 23,806 0.65 4.90 0.94
1.00 4.80 18,717 0.65 4.68 0.92
1.00 1.62 48,742 0.65+ 4.85+ 0.94+
1.00 5.34 26,175 0.65 5.23 0.92
1.00 3.45 20,173 0.65 3.44 0.94
$1.00 2.24% $ 60,715 0.55%+(b) 4.43%+ 0.89%+(b)
1.00 4.82 82,080 0.55(b) 4.72 0.93(b)
1.00 5.12 77,060 0.55 5.00 0.84
1.00 4.93 27,750 0.55 4.78 0.82
1.00 1.66 62,617 0.55+ 4.95+ 0.84+
1.00 5.45 27,079 0.55 5.33 0.82
1.00 2.24 11,955 0.55+ 3.54+ 0.84+
$1.00 2.24% $ 454 0.55%+(b) 4.43%+ 0.79%+(b)
1.00 4.82 42 0.55(b) 4.72 0.83(b)
1.00 5.12 3,369 0.55 5.00 0.84
1.00 4.93 2,142 0.55 4.78 0.82
1.00 1.66 1,731 0.55+ 4.95+ 0.84+
1.00 5.44 4,414 0.55 5.33 0.82
1.00 2.94 476 0.55+ 3.54+ 0.84+
$1.00 2.11% $ 17,837 0.80%+(b) 4.18%+ 1.24%+(b)
1.00 4.56 43,430 0.80(b) 4.47 1.28(b)
1.00 4.85 6,567 0.80 4.75 1.09
1.00 4.63 7,860 0.80 4.53 1.07
1.00 1.58 2 0.71+ 4.79+ 1.00+
1.00 4.38 2 0.55+ 5.33+ 0.82+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-------------------------------------
<S> <C> <C> <C>
PRIME
PRIMARY A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0245 $(0.0245)
Year ended 3/31/1999........................................ 1.00 0.0521 (0.0521)
Year ended 3/31/1998........................................ 1.00 0.0547 (0.0547)
Year ended 3/31/1997........................................ 1.00 0.0520 (0.0520)
Period ended 3/31/1996(a)................................... 1.00 0.0468 (0.0468)
Year ended 5/31/1995........................................ 1.00 0.0519 (0.0519)
Year ended 5/31/1994........................................ 1.00 0.0318 (0.0318)
PRIMARY B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0232 $(0.0232)
Year ended 3/31/1999........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1998........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1997........................................ 1.00 0.0495 (0.0495)
Period ended 3/31/1996(a)................................... 1.00 0.0447 (0.0447)
Period ended 5/31/1995*..................................... 1.00 0.0474 (0.0474)
INVESTOR A SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0227 $(0.0227)
Year ended 3/31/1999........................................ 1.00 0.0486 (0.0486)
Year ended 3/31/1998........................................ 1.00 0.0512 (0.0512)
Year ended 3/31/1997........................................ 1.00 0.0485 (0.0485)
Period ended 3/31/1996(a)................................... 1.00 0.0438 (0.0438)
Year ended 5/31/1995........................................ 1.00 0.0475 (0.0475)
Year ended 5/31/1994........................................ 1.00 0.0283 (0.0283)
INVESTOR B SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0232 $(0.0232)
Year ended 3/31/1999........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1998........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1997........................................ 1.00 0.0495 (0.0495)
Period ended 3/31/1996(a)................................... 1.00 0.0447 (0.0447)
Year ended 5/31/1995........................................ 1.00 0.0493 (0.0493)
Period ended 5/31/1994*..................................... 1.00 0.0015 (0.0015)
INVESTOR C SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0233 $(0.0233)
Year ended 3/31/1999........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1998........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1997........................................ 1.00 0.0495 (0.0495)
Period ended 3/31/1996(a)................................... 1.00 0.0447 (0.0447)
Year ended 5/31/1995........................................ 1.00 0.0493 (0.0493)
Period ended 5/31/1994*..................................... 1.00 0.0155 (0.0155)
DAILY SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0220 $(0.0220)
Year ended 3/31/1999........................................ 1.00 0.0471 (0.0471)
Year ended 3/31/1998........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1997........................................ 1.00 0.0470 (0.0470)
Period ended 3/31/1996(a)................................... 1.00 0.0439 (0.0439)
Period ended 5/31/1995*..................................... 1.00 0.0173 (0.0173)
MARSICO SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0232 $(0.0232)
Period ended 3/31/1999*..................................... 1.00 0.0080 (0.0080)
</TABLE>
- ---------------
* Prime Primary B, Investor B, Investor C, Daily Shares and Marsico Shares
commenced operations on June 16, 1994, May 11, 1994, November 26, 1993,
February 9, 1995 and January 26, 1999, 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.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE NET
END OF PERIOD RETURN++ (000) ASSETS ASSETS ASSETS
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.47% $2,710,520 0.30%+(b) 4.90%+ 0.34%+(b)
1.00 5.34 3,153,372 0.30(b) 5.21 0.34(b)
1.00 5.61 2,852,555 0.30 5.48 0.35
1.00 5.34 2,533,688 0.30 5.21 0.35
1.00 4.79 2,472,469 0.30+ 5.62+ 0.37+
1.00 5.32 2,873,096 0.30 5.23 0.38
1.00 3.22 2,883,762 0.30 3.20 0.37
$1.00 2.35% $ 14,169 0.55%+(b) 4.65%+ 0.59%+(b)
1.00 5.08 81,649 0.55(b) 4.96 0.59(b)
1.00 5.34 8,132 0.55 5.23 0.60
1.00 5.05 184,021 0.55 4.96 0.60
1.00 4.57 96,305 0.55+ 5.37+ 0.62+
1.00 4.84 126,120 0.55+ 4.98+ 0.63+
$1.00 2.30% $ 680,898 0.65%+(b) 4.55%+ 0.69%+(b)
1.00 4.91 695,703 0.65(b) 4.86 0.69(b)
1.00 5.24 1,706,692 0.65 5.13 0.70
1.00 4.96 1,157,724 0.65 4.86 0.70
1.00 4.48 1,099,490 0.65+ 5.27+ 0.72+
1.00 4.85 698,358 0.75 4.78 0.83
1.00 2.86 511,833 0.65 2.85 0.72
$1.00 2.35% $ 670,520 0.55%+(b) 4.65%+ 0.69%+(b)
1.00 5.02 738,673 0.55(b) 4.96 0.69(b)
1.00 5.34 844,367 0.55 5.23 0.60
1.00 5.05 381,015 0.55 4.96 0.60
1.00 4.57 358,646 0.55+ 5.37+ 0.62+
1.00 5.03 216,973 0.56 4.97 0.64
1.00 0.15 2 0.55+ 2.95+ 0.62+
$1.00 2.35% $ 16,242 0.55%+(b) 4.65%+ 0.59%+(b)
1.00 5.02 11,037 0.55(b) 4.96 0.59(b)
1.00 5.34 96,149 0.55 5.23 0.60
1.00 5.05 93,678 0.55 4.96 0.60
1.00 4.57 74,822 0.55+ 5.37+ 0.62+
1.00 5.03 53,451 0.56 4.97 0.64
1.00 1.58 1,481 0.55+ 2.95+ 0.62+
$1.00 2.22% $1,554,785 0.80%+(b) 4.40%+ 1.04%+(b)
1.00 4.75 2,718,028 0.80(b) 4.71 1.04(b)
1.00 5.08 92,974 0.80 4.98 0.85
1.00 4.80 9,010 0.80 4.71 0.85
1.00 4.49 40 0.67+ 5.25+ 0.74+
1.00 1.74 2 0.55+ 4.98+ 0.63+
$1.00 2.35% $ 22,461 0.55%+(b) 4.65%+ 0.59%+(b)
1.00 0.80 17,970 0.55+(b) 4.96+ 0.59+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust") and Nations Fund, Inc. (the "Company") 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 and the Company offered seven separate
portfolios. These financial statements pertain only to the money market
portfolios of the Trust and the Company (each a "Fund" and collectively, the
"Funds"). Financial statements for the other portfolios of the Trust and the
Company are presented under separate cover. The Funds currently offer six
classes of shares: Primary A Shares, Primary B Shares, Investor A Shares,
Investor B Shares, Investor C Shares and Daily Shares. The Prime Fund also
offers Marsico 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.
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 are valued on the basis of amortized cost,
which approximates market value. Amortized cost valuation involves initially
valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, as long as the effect of
fluctuating interest rates on the market value of the instrument is not
significant. Restricted securities and certain other assets are valued by the
investment advisor under the supervision of the Board of Trustees/Directors.
Repurchase agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and date, thereby determining the yield during the Fund's holding period.
This arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral is at
least equal at all times to the total amount of the repurchase obligations,
including interest. 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 securities, including the risk
of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its right. The Funds' investment advisor
and sub-advisor, under the oversight of the Board of Trustees/Directors, monitor
the value of collateral received as well as the creditworthiness of those banks
and dealers with which the Funds enter into repurchase agreements to evaluate
potential risks.
Reverse repurchase agreements: Each Fund may enter into reverse repurchase
agreements with institutions that the Funds' investment advisor and sub-advisor
have determined are creditworthy. Under the terms of a typical reverse
repurchase agreement, the Fund sells securities and agrees to repurchase them at
a mutually agreed upon date and price. At the time the Fund enters into a
reverse repurchase agreement, it establishes a segregated account with its
custodian bank in which it will maintain cash, U.S. Government securities or
other appropriate liquid securities at least equal in value to the Fund's
obligations arising under the reverse repurchase agreement. Reverse repurchase
agreements involve the risk that the market value of the securities purchased
with the proceeds from the sale of securities received by the Fund may decline
below the price of the securities that the Fund is obligated to repurchase.
Securities subject to repurchase under reverse repurchase agreements are
designated in the Statements of net assets.
At September 30, 1999, the Treasury Fund had reverse repurchase agreements
outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount......................... $268,349,000
Maturity Date........................... 10/01/1999
Market Value of Assets Sold Under
Agreements............................ $285,685,000
</TABLE>
The average daily balance of reverse repurchase agreements outstanding for the
Treasury Fund during the six months ended September 30, 1999 was $416,942,885.
The proceeds received by the Treasury Fund under the reverse repurchase
agreements were reinvested in a tri-party repurchase agreement. Net fees earned
during the six months ended September 30, 1999, representing the difference
between interest rates on the reverse repurchase and repurchase agreements,
amounted to $211,946 and
40
<PAGE> 45
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
have been included in interest income in the Statements of operations.
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 calculated ratably, 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.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. At the time a Fund enters into such transactions, it
instructs the custodian to segregate assets with a current value at least equal
to the amount of its when-issued or delayed-delivery purchase commitments.
Dividends and distributions to shareholders: It is the policy of each Fund to
declare dividends from net investment income daily and to pay such dividends
monthly. Each Fund will distribute net realized short-term capital gains
annually after the fiscal year in which the capital gains were realized or more
frequently to maintain a net asset value of $1.00 per share, 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 and the Company are allocated to the
Funds based upon their 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.
Cash flow information: Cash, as used in the Statement of cash flows, is the
amount reported in the Statements of net assets and represents cash on hand at
custodian banks. The Trust and the Company issue and redeem shares, invest in
securities, and distribute dividends from net investment income and net capital
gains (which are either paid in cash or reinvested at the discretion of
shareholders). These activities are reported in the Statements of changes in net
assets. Information on cash payments is presented in the Statement of cash flows
for the Treasury Fund.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Each of the Trust and the Company has entered into an investment advisory
agreement (the "Investment Advisory Agreements") 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
Funds. Under the Investment Advisory Agreements, BAAI is currently entitled to
receive an advisory fee, calculated daily and payable monthly, at the maximum
annual rate of 0.20% of each Fund's average daily net assets. Effective May 14,
1999, the maximum advisory fee payable by the Government Money Market and Tax
Exempt Funds decreased by 0.20% from an annual rate of 0.40% of the Funds'
average daily net assets. Effective August 1, 1999, the Prime and Treasury Funds
advisory fee decreased to 0.20% from the prior annual rate of 0.25% of average
daily net assets on combined net assets up to $250 million and 0.20% on combined
net assets exceeding $250 million.
Each of the Trust and the Company 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 maximum annual rate of 0.055% of
each Fund's average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust and
the Company. 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 0.10% of each Fund's average daily net assets. The Bank
of New York ("BNY") serves as sub-administrator of the Trust and the Company
pursuant to an agreement with BAAI.
41
<PAGE> 46
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
For the six months ended September 30, 1999, Stephens and BAAI earned $2,261,106
and $587,240, respectively, from the Funds for their co-administration services.
BAAI and/or the sub-advisor and Stephens may, from time to time, reduce their
fees payable by each Fund. Effective August 1, 1999, BAAI and/or the sub-advisor
and Stephens agreed to reimburse expenses and/or waive their fees until July 31,
2000 to the extent that total expenses (excluding shareholder servicing and
distribution fees) exceed an annual rate of 0.30% of each Fund's average daily
net assets. Prior to that date, BAAI and/or the sub-advisor and Stephens had
voluntarily agreed to reimburse expenses and/or waive their fees to maintain
these total expense limits.
BNY also serves as the custodian of the Trust's and the Company's assets. For
the six months ended September 30, 1999, expenses of the Treasury, Government
Money Market and Prime Fund were reduced by $27,408 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. The Tax Exempt
Fund does not participate in the expense offset arrangement.
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 $8,230 for providing such services. Stephens also serves as
distributor of the Funds' shares.
Effective July 1, 1999, the Boards of Trustees/Directors of the Trust and the
Company, 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 Trust, the Company, Nations
Reserves, Nations Annuity Trust, Nations LifeGoal Funds, Inc. and Nations Master
Investment Trust. Under the new structure, each unaffiliated Trustee/Director
receives a base retainer fee 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
Boards 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 and the Company 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 and the
Company also reimbursed expenses incurred by each unaffiliated Trustee or
Director in attending such meetings.
The Trust's and the Company's eligible Trustees/ Directors, respectively, 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 the Treasury Fund. The expense
for the deferred compensation and retirement plans is included in
"Trustees'/Directors' fees and expenses" in the Statements of operations.
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 and the Company each have adopted shareholder servicing plans and
distribution plans for the Investor A, Investor B, Investor C and Daily Shares
of each Fund and a shareholder servicing plan for the Primary B Shares of each
Fund and Marsico Shares of the Prime Fund. The shareholder servicing plans
permit the Funds to compensate or reimburse servicing agents for shareholder
services 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
42
<PAGE> 47
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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
Boards 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>
Primary B, Investor A, Investor C,
Daily and Marsico Shareholder
Servicing Plans................... 0.25%* 0.25%
Investor B Shareholder Servicing
Plan................................ 0.25%* 0.25%
Investor A Distribution Plan........ 0.10% 0.10%
Investor B Distribution............. 0.00% 0.10%
Daily Distribution Plan............. 0.25% 0.45%
</TABLE>
- ---------------
* Reflects a rate change effective September 1, 1999 from 0.20% for the Tax
Exempt Fund.
4. SHARES OF BENEFICIAL INTEREST/CAPITAL STOCK
At September 30, 1999, an unlimited number of shares of beneficial interest
without par value were authorized for the Trust and 480,000,000,000 shares of
$.001 par value capital stock were authorized for the Company. The Trust's
Declaration 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.
5. RESTRICTED SECURITIES
Certain securities may be subject to legal restrictions and may be difficult to
sell. No Fund will invest more than 10% of the value of its net assets in
securities that are illiquid.
The following securities are considered both illiquid and restricted as to
resale. Accordingly, they are valued at fair value in good faith by the
investment advisor under the direction of the Board of Trustees/Directors, as
applicable, taking into consideration such factors as the relevant Board deems
appropriate.
TAX EXEMPT
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alliance Airport Authority, Inc., Texas, Special
Facilities Revenue, (Federal Express Project) Series
1999 PA-460, AMT,
3.80% 02/24/00....................................... 3/22/99 $30,530 $1.00 $30,530 1.4% $30,530
Bexar County, Texas, Housing Finance Corporation,
Multi-Family Housing Revenue, Series 1998 PT-1041,
AMT,
4.02% 06/01/35....................................... 6/26/99 10,190 1.00 10,190 0.5 10,190
Broward County, Florida, Housing Finance Authority,
Multi-Family Housing Revenue, Series 1999 PT-1166,
3.99% 12/01/25....................................... 7/01/99 11,790 1.00 11,790 0.5 11,790
Rockdale County, Georgia, Water and Sewer Authority,
Capital Outlay Revenue, Series 1999,
3.75% 12/15/99....................................... 2/15/99 7,750 1.00 7,750 0.3 7,750
</TABLE>
TREASURY
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Repurchase Agreement with Goldman Sachs and Company,
5.50% 02/02/00....................................... 8/6/99 $95,000 $1.00 $95,000 4.5% $95,000
</TABLE>
43
<PAGE> 48
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
PRIME
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Allstate Life Insurance Company:
5.470% 10/01/99+++..................................... 11/01/98 $25,000 $1.00 $25,000 0.4% $25,000
5.470% 10/01/99+++................................... 12/01/98 25,000 1.00 25,000 0.4 25,000
Anchor National Life Insurance Company:
5.409% 10/01/99+++................................... 12/01/98 25,000 1.00 25,000 0.4 25,000
5.560% 10/01/99+++................................... 1/01/99 50,000 1.00 50,000 0.9 50,000
Commonwealth Life Insurance Company:
5.550% 10/01/99+++................................... 3/05/99 50,000 1.00 50,000 0.9 50,000
5.580% 10/01/99+++................................... 6/01/99 10,000 1.00 10,000 0.2 10,000
5.580% 10/01/99+++................................... 8/02/99 62,000 1.00 62,000 1.1 62,000
First Allmerica Life Insurance Company,
5.550% 11/24/99+++................................... 8/24/99 50,000 1.00 50,000 0.9 50,000
Life Insurance Company of Georgia,
5.449% 10/01/99+++................................... 6/01/99 60,000 1.00 60,000 1.1 60,000
Peoples Security Life Insurance Company:
5.480% 10/01/99+++................................... 7/05/99 20,000 1.00 20,000 0.4 20,000
5.580% 10/01/99+++................................... 2/05/99 20,000 1.00 20,000 0.4 20,000
SMM Trust, Series 1999-B,
5.449% 03/15/00...................................... 3/02/99 50,000 1.00 50,000 0.9 50,000
Sun Life Insurance Company of America,
5.439% 10/01/99+++................................... 10/01/98 50,000 1.00 50,000 0.9 50,000
Travelers Life Insurance Company,
5.425% 10/01/99+++................................... 2/03/99 25,000 1.00 25,000 0.4 25,000
</TABLE>
- ---------------
+++ Reset date
The following securities of the Prime Fund are restricted as to resale; however,
they are considered liquid due to the put feature which allows the Fund to put
the security back to the issuer at par value within seven calendar days.
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Life Insurance Company of Virginia:
5.292% 10/01/99+++..................................... 3/01/99 $25,000 $1.00 $25,000 0.4% $25,000
5.292% 10/01/99+++................................... 2/01/99 25,000 1.00 25,000 0.4 25,000
5.302% 10/01/99+++................................... 9/01/99 50,000 1.00 50,000 0.9 50,000
Metropolitan Life Insurance Company:
5.590% 10/01/99+++................................... 9/29/99 45,000 1.00 45,000 0.8 45,000
5.590% 10/01/99+++................................... 9/29/99 45,000 1.00 45,000 0.8 45,000
New York Life Insurance Company,
5.379% 10/01/99+++................................... 11/10/98 50,000 1.00 50,000 0.9 50,000
</TABLE>
- ---------------
+++ Reset date
6. LINE OF CREDIT
The Trust and the Company 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 net assets (not
including amounts borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement.
For the six months ended September 30, 1999, there were no borrowings by the
Funds under the Agreement.
44
<PAGE> 49
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
7. CAPITAL LOSS CARRYFORWARD
At March 31, 1999, the Funds had available for Federal income tax purposes the
following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2002 2003 2004 2005 2006 2007
(000) (000) (000) (000) (000) (000)
--------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Treasury.................................................... $16 $ 26 $95 $ 31 $14 $ 9
Government Money Market..................................... -- 59 2 -- -- --
Prime....................................................... -- 131 35 436 23 --
</TABLE>
8. REORGANIZATIONS
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 value of shares issued by the Acquiring
Fund is presented in the Schedules of capital stock activity. Net assets as of
the reorganization date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Exempt Emerald Tax-Exempt Fund $ 170,700 $2,426,697 $2,597,397
Prime Emerald Prime Fund 2,174,402 5,517,462 7,691,864
Treasury Emerald Treasury Fund 875,235 2,468,080 3,343,315
</TABLE>
On June 19, 1998, the Tax Exempt Fund ("Acquiring Fund"), acquired the assets of
the Common Trust Municipal Temp Fund ("Acquired Fund"), a common trust fund
managed by NationsBank, N.A., in a tax-free exchange for shares of the Acquiring
Fund. The value of shares issued by the Acquiring Fund is presented in the
Schedules of capital stock activity. Net assets as of the conversion date were
as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS OF
TOTAL NET ASSETS TOTAL NET ASSETS ACQUIRING FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER CONVERSION
(000) (000) (000)
------------------------------------------------------------
<S> <C> <C>
$52,112 $2,597,973 $2,650,085
</TABLE>
45
<PAGE> 50
P.O. Box 34602
Charlotte, NC 28234-4602
Toll free 1.800.982.2271
Nations Funds
SAR4 991400 (9/99)
