<PAGE> 1
[NATIONS FUNDS LOGO]
[GRAPHIC DEPICTING TREE]
Municipal
Bond
Funds
Annual Report For The
Year Ended March 31, 1999
[GRAPHIC DEPICTING HIGHWAY]
Investments For A Lifetime(SM)
Nations Short-Term Municipal Income Fund
Nations Intermediate Municipal Bond Fund
Nations Municipal Income Fund
Nations FL Intermediate Municipal Bond Fund
Nations FL Municipal Bond Fund
Nations GA Intermediate Municipal Bond Fund
Nations GA Municipal Bond Fund
Nations MD Intermediate Municipal Bond Fund
Nations MD Municipal Bond Fund
Nations NC Intermediate Municipal Bond Fund
Nations NC Municipal Bond Fund
Nations SC Intermediate Municipal Bond Fund
Nations SC Municipal Bond Fund
Nations TN Intermediate Municipal Bond Fund
Nations TN Municipal Bond Fund
Nations TX Intermediate Municipal Bond Fund
Nations TX Municipal Bond Fund
Nations VA Intermediate Municipal Bond Fund
Nations VA Municipal Bond Fund
<PAGE> 2
[GRAPHIC DEPICTING BASKETS]
This Report is submitted for the general information of shareholders of Nations
Funds. This material must be preceded or accompanied by a current Nations Funds
prospectus.
Nations Funds Distributor: Stephens Inc. Stephens Inc., which is not affiliated
with Bank of America National Trust and Savings Association or NationsBank,
N.A., is not a bank, and securities offered by it are not guaranteed by any
bank or insured by the FDIC, Stephens Inc., member NYSE, SIPC.
Nations Funds Investment Adviser:
NationsBanc Advisors, Inc.
[TRIANGLE GRAPHIC]
NOT FDIC-
INSURED
May Lose Value
No Bank Guarantee
<PAGE> 3
Presidents'
Message
Dear Shareholder:
We'd like to thank you for being a part of the
Nations Funds family. Your continued trust and
confidence are greatly appreciated. Many noteworthy
events have taken place during the past year. Let's
take a look.
A ROLLER-COASTER-RIDE OF A YEAR
We know the past 12 months have proved to be quite an
unsettling time for investors. You've seen major
market indexes reach all-time highs, even after the
significant market volatility of late summer-early
fall 1998. Much of the volatility was attributed to
financial crises in Brazil and Russia, the continuing
malaise in Asia, as well as a slowdown in U.S.
corporate earnings growth. However, the Federal
Reserve Board came to the rescue in late September
with the first of three successive cuts in interest
rates. By year-end, investors were feeling confident
once again and many stocks had soared, moving the Dow
Jones Industrial Average closer to the 10,000
milestone.*
While some stock indexes had another impressive year
of double-digit performance -- the Standard & Poor's
500 Composite Stock Price Index (S&P 500)** of
large-company stocks was up 18.46% for the 12 months
ending March 31, 1999 -- focusing on these particular
indexes doesn't give you the complete picture. For
example, during the same 12-month period, the
Standard & Poor's MidCap 400 Index*** posted a gain
of only 0.43% and the Russell 2000 Index(+) of
small-company stocks actually posted negative
performance of -16.20%. There was even divergence
among the stocks in the S&P 500, with the performance
of the 25 largest stocks accounting for approximately
70% of the Index's return.
THE VALUE OF ADVICE
Diversification, along with a long-term perspective,
are among the best tools for investors to weather
changing markets and create a balanced investment
portfolio. That's where the value of professional
financial advice comes in. The role of a good
financial adviser, especially during volatile times,
is to help you make smart investment decisions that
help you pursue your long-term goals. During last
year's downturn in
* 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.
*** The Standard & Poor's MidCap 400 Index is a
market-value weighted index that measures
the market value of 400 domestic stocks chosen for
market size, liquidity and industry
representation. It is unmanaged and unavailable for
investment.
+ The Russell 2000 Index is a capitalization-weighted
index that includes 2,000 of the smallest
stocks representing approximately 11% of the U.S.
equity market. It is unmanaged and
unavailable for investment.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
Presidents'
Message continued...
the markets, many mutual fund shareholders who
invested through a financial adviser remained calm
and ignored short-term corrections.
Today, these same investors are probably glad they
did, as the markets continue their generally upward
trend. Of course, history tells us that these trends
do not continue indefinitely, and our belief is that
the best way to weather changing market conditions is
by working with a professional financial adviser.
YOUR MANAGERS OF DISTINCTION(SM)
Financial advisers are there to guide and assist you,
but it also helps to invest with a company that has
experienced fund managers who have weathered various
market cycles over time. At Nations Funds, we call
them our Managers of Distinction(SM).
In bringing you the wide range of funds we offer,
we've carefully selected a roster of specialized
investment management firms. Nations Funds Managers
of Distinction(SM) are all seasoned and
well-respected investment firms. We are pleased to
bring this talent together in one place to offer you
a variety of distinct money management styles.
And, our fund family should get even better with the
completion of our merger with Pacific Horizon
Funds -- the largest merger in mutual fund
history -- anticipated for May. Together, the new
Nations Funds family will be able to offer you an
even broader selection of mutual funds.
Of course, customer service continues to be of
tremendous importance to us and, for the second year
in a row, Nations Funds received the Key Honors award
for superior customer support from DALBAR, Inc. -- an
independent evaluator of customer service in the
mutual fund industry. Our commitment is to provide
you with the best products and services, and we will
seek to continue to do so in the coming year.
We are excited about the past year and the
opportunities ahead of us. If you have any questions
or comments on your annual report, please contact us
at 1.800.321.7854 or e-mail your comments to us via
our Web site at WWW.NATIONSBANK.COM/NATIONSFUNDS.
Once again, thank you for being a part of the Nations
Funds family.
Sincerely,
<TABLE>
<S> <C>
/s/ A. Max Walker /s/ Robert H. Gordon
A. Max Walker Robert H. Gordon
President and Chairman President
of the Board NationsBanc Advisors, Inc.
</TABLE>
March 31, 1999
P.S. On May 21, 1999, the Nations Funds/Pacific
Horizon Funds merger was successfully completed.
<PAGE> 5
Table
Of
Contents
<TABLE>
<S> <C>
NATIONS FUNDS SPECTRUM 2
ECONOMIC OVERVIEW 4
MUNICIPAL BOND MARKET OVERVIEW 7
PORTFOLIO COMMENTARY
Nations Short-Term Municipal Income Fund 8
Nations Intermediate Municipal Bond Fund 12
Nations Municipal Income Fund 16
Nations FL Intermediate Municipal Bond Fund 20
Nations FL Municipal Bond Fund 24
Nations GA Intermediate Municipal Bond Fund 28
Nations GA Municipal Bond Fund 32
Nations MD Intermediate Municipal Bond Fund 36
Nations MD Municipal Bond Fund 40
Nations NC Intermediate Municipal Bond Fund 44
Nations NC Municipal Bond Fund 48
Nations SC Intermediate Municipal Bond Fund 52
Nations SC Municipal Bond Fund 56
Nations TN Intermediate Municipal Bond Fund 60
Nations TN Municipal Bond Fund 64
Nations TX Intermediate Municipal Bond Fund 68
Nations TX Municipal Bond Fund 72
Nations VA Intermediate Municipal Bond Fund 76
Nations VA Municipal Bond Fund 80
FINANCIAL STATEMENTS
Statements of Net Assets 84
Statements of Operations 188
Statements of Changes in Net Assets 192
Schedules of Capital Stock Activity 200
Financial Highlights 220
Notes to Financial Statements 258
</TABLE>
<TABLE>
<S> <C>
---------------------------------------------------------------------------------
Nations Funds [Dalbar Logo]
Recognized For
Outstanding DALBAR, Inc., is a well-respected research firm
Customer Service that measures customer service levels and
establishes benchmarks in the financial services
In recognition of our industry.
commitment to retail
shareholders through
consistently providing
superior customer service,
Nations Funds was awarded
DALBAR Key Honors in 1997
and 1998.
---------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
THE
NATIONS FUNDS
FAMILY AT A GLANCE
POTENTIAL RETURN
GROWTH & INCOME
------------------
CURRENT INCOME
- ------------------------------------------------------------------------------------------------------------------------------
LIQUIDITY
- ----------------------------------------------
MONEY SHORTER INTERMEDIATE LONGER TERM LARGE
MARKET MATURITY MATURITY DOMESTIC CAPITALIZATION
FUNDS BOND FUNDS BOND FUNDS BOND FUNDS VALUE FUNDS
- ----- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
*Nations *Nations Short- *Nations *Nations *Nations
Prime Fund Intermediate Strategic Fixed Diversified Value Fund
Government Income Fund Income Fund
*Nations Government Fund *Nations
Money Market *Nations *Nations Managed
Fund *Nations Government U.S. Government Value Index
Short-Term Securities Fund Bond Fund Fund
*Nations Income Fund
Treasury Fund *Nations *Nations *Nations
*Nations Short- Intermediate Municipal Balanced Assets
*Nations Tax Term Municipal Municipal Income Fund Fund
Exempt Fund Income Fund Bond Fund
*Nations
*Nations State-Specific
State-Specific Long-Term
Intermediate Municipal Bond
Municipal Bond Funds
Funds
</TABLE>
RISK (VARIABILITY)
2
<PAGE> 7
<TABLE>
<CAPTION>
[NATIONS FUNDS LOGO]
INVESTMENTS FOR A LIFETIME(SM)
POTENTIAL RETURN
AGGRESSIVE GROWTH
-----------------------------------------------------------------------------
GROWTH
- -------------------------------------------------------------------
GROWTH & INCOME
- -------------------------------------------
LARGE
CAPITALI- LARGE MID SMALL REGION-SPECIFIC
ZATION CAPITALIZATION INTERNATIONAL CAPITALIZATION CAPITALIZATION INTERNATIONAL
FUNDS GROWTH FUNDS EQUITY FUNDS FUNDS FUNDS FUNDS
- ----- ------------ ------------ ----- ----- -----
<S> <C> <C> <C> <C> <C>
*Nations *Nations *Nations *Nations *Nations *Nations
Marsico Growth Marsico Focused International Emerging Small Company Emerging
& Income Fund Equities Fund Value Fund Growth Fund Growth Fund Markets Fund
*Nations *Nations *Nations *Nations
Equity Disciplined International Managed
Index Fund Equity Fund Growth Fund SmallCap
Index Fund
*Nations *Nations *Nations
Managed Capital Growth International *Nations
Index Fund Fund Equity Fund Managed
SmallCap
*Nations *Nations Value Index
Equity Strategic Equity Fund
Income Fund Fund
RISK (VARIABILITY)
</TABLE>
LIFEGOAL PORTFOLIOS
*LifeGoal Income And Growth Portfolio
*LifeGoal Balanced Growth Portfolio
*LifeGoal Growth Portfolio
3
<PAGE> 8
Economic
Overview
The U.S. economy expanded strongly and the stock
market surged for the 12 months ending March 31,
1999.
Declining interest rates, confident consumers,
healthy corporate capital spending and an expanding
housing industry all helped propel the economy and
fuel a persistent rally in stocks, particularly of
large-capitalization companies. It was an
event-filled period, punctuated by abrupt changes in
investor sentiment and even some signs of a slowing
of growth in the middle of the year. Through it all,
the nation's Gross Domestic Product (the market value
of the goods and services produced) grew. In 1998,
the growth rate was an estimated 3.6%, only slightly
less than the healthy 3.9% growth rate of 1997.
Upon closer examination, the story of the 12-month
period actually was a tale of two economies -- a
strong consumer economy and a weak industrial sector.
Solid employment growth and increased real disposable
personal income translated to a high level of
consumer confidence. Industries linked closely to
consumer behavior -- including autos, housing and
retail -- were quite strong. At the same time, a
number of factors contributed to weakness on the
industrial side of the economy. The economic problems
of some of our key trading partners, combined with
the strength of the U.S. dollar, led to sluggishness
in exports. While the evidence remains mixed, the
worst of these problems for industrial industries may
be ending. The most recent view of the National
Association of Purchasing Managers, for example, is
that manufacturing conditions in the U.S. may have
bottomed.
Inflation, as measured by the Consumer Price Index,
averaged 1.5% in 1998, following a 2.3% rise in 1997.
Lower food and energy prices, combined with cheaper
import prices, contributed significantly to the tame
inflation picture. The low inflation rate came
despite a low unemployment rate of 5% or less for
most of the year. In the past, low unemployment
accompanied by growth in money supply has tended to
fuel inflation. However, that did not happen last
year, as concerns about a worldwide credit crunch,
global recession and deflation acted as a brake on
inflation. The U.S. Federal Reserve Board moved away
from its tight monetary policy stance of early 1998
and cut short-term interest rates three successive
times in the fall, easing the availability of credit
and liquidity. As we entered the second calendar
quarter of 1999, economists were debating what the
next move of the Federal Reserve Board might be.
If the economic story during the period was split
into two sections -- consumer and industrial -- the
year in the stock market was divided into three
periods. For the first seven months, the
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
4
<PAGE> 9
Economic
Overview continued...
market steadily progressed, peaking in July. Then,
the market abruptly reversed course, diving in August
through early October as international
concerns -- starting with the devaluation of the
Russian ruble -- overwhelmed relatively benign
reports about the U.S. economy. However, the Federal
Reserve Board's actions helped restore confidence,
and the market went on to new highs in late 1998 and
early 1999.
The fiscal year also encompassed several different
periods for bond market investors. Earlier in the
year, investor uneasiness about the possibility of a
revival of inflation worried the bond market, and
interest rates tended to rise and bond prices slumped
going into the summer of 1998. That situation changed
dramatically with the Russian economic crisis of
April. Fears about a global economic slowdown drove
investor dollars toward only the highest quality
securities -- principally U.S. Treasuries, and
interest rates fell sharply. This period of investor
anxiety ended in early October, however, as the
Federal Reserve Board's intervention calmed the
markets. For the remainder of the fiscal year,
corporate and mortgage-backed securities -- with
yield spread advantages over U.S.
Treasuries -- tended to return to favor.
International economic forces continue to send mixed
signals. In early 1999, we could see scattered signs
of an economic turnaround in Southeast Asia. Japan
was beginning to reform its banking system, and
investors were waiting to see the impact of an
injection of 40 trillion yen into the banking system.
Japan suffered through its worst economic performance
in 50 years during 1998. The key to its economic
rebound will be how quickly the business community,
consumers and investors regain confidence. Worth
watching will be whether Japan's export industry can
grow. Elsewhere, the international scene provided
additional signs of progress. The International
Monetary Fund (IMF) finally received funding from the
U.S. Congress, easing investor concerns. The
devaluation of the real -- the Brazilian
currency -- seemed to be postponed, but Brazil's
government remained under pressure to carry out
needed economic reforms.
But if U.S. investors found reasons for guarded
optimism in some international developments, they
also found sources for concern. China appeared unable
to meet its ambitious growth targets and Hong Kong's
economy remained under pressure. The world continued
to watch to see whether China would feel pressure to
devalue its currency. Meanwhile, the ability of
Russia to pay its bills remained in doubt and the
Russian domestic political situation raised questions
as Foreign Minister Primakov took over day-to-day
decision-making from an ailing Boris Yeltsin.
Our outlook for 1999 calls for a possible slowing,
but not reversal, of the domestic economic expansion.
In light of reports of a slowdown
5
<PAGE> 10
Economic
Overview continued...
in employment growth, a reduction in capital spending
and continued sluggishness in international trade, we
think economic expansion may have peaked. However, we
still see room for continued growth in 1999 at lower
levels than in 1998, perhaps at a rate of between 3%
and 3.5%.
Viewing the domestic stock market in early 1999, the
big question is whether the third quarter of 1998
represented a bottom for earnings and for stock
prices. Given expectations of a slowing of U.S.
economic growth and continued sluggishness in the
global economy, investors are concerned about
corporate earnings expectations for 1999. However, we
do not think the most recent stock market levels
reflected these investor concerns.
In the bond market, we see the potential of a more
stable interest rate climate over the next several
months, with the possibility of less dramatic changes
in investor sentiment than we saw over the past 12
months.
We believe the direction of the markets will depend
greatly on the economy's ability to continue to move
forward at a controlled pace.
C. Thomas Clapp
Chief Equity Investment Officer
TradeStreet Investment Associates, Inc.
March 31, 1999
6
<PAGE> 11
Municipal
Bond Market
Overview
The municipal bond market performed quite well during
the 12-month period ended March 31, 1999. Its
performance, however, lagged that of the U.S.
Treasury market, which benefited from the advantage
of a larger market of potential buyers to fuel
demand. During a period in which many investors,
including foreign investors, were concerned about the
impact of global economic environment, the U.S.
Treasury market showed extremely strong performance.
As a general rule, bond prices tend to rise as
interest rates fall, and the past year was a period
of falling rates and rising prices. To illustrate,
the yield on the 10-year U.S. Treasury Bond fell by
.44% during the year, from 5.65% to 5.21%, while the
yield on a comparable-maturity AAA-rated municipal
bond fell by .25%, from 4.55% to 4.30%.
During this 12-month period, the municipal bond
market experienced a heavy influx of new bonds, which
increased supply and limited the decline in municipal
bond yields. In an environment of low absolute
interest rates and a strong economy, many
municipalities and other public agencies enjoyed
improving fiscal health and issued new bonds either
to refinance older debt or to fund new public
construction projects. While supply increased, demand
for municipal bonds did not increase proportionately.
The demand for tax-exempt bonds is concentrated among
those seeking exemptions from federal, and sometimes
state and local, income taxes, and this ceiling on
demand serves as a brake on performance.* One of the
results of this phenomenon, however, was that on an
after-tax basis, municipal bonds offered extremely
attractive income for investors in virtually all tax
brackets.
We believe that the issuance of insurance on new
municipal bonds may have reached its peak in the past
12 months. Approximately 50% of all new issues now
carry bond insurance -- the highest level ever.
However, bond-rating agencies have begun to advise
municipal bond insurers that the automatic
AAA-ratings that the insurance has provided could be
at risk. The rating agencies said they are concerned
about potential slippage in underwriting standards.
These warnings could result in a re-emphasis on
credit risk in the market, which in our view, would
be a positive development for all the market's
participants.
Municipal Fixed Income Management Team
TradeStreet Investment Associates, Inc.
March 31, 1999
* Income is substantially exempt from federal income
taxes. However, for certain investors,
income may be subject to state and local taxes and to
the federal Alternative Minimum Tax
(AMT).
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
7
<PAGE> 12
Nations
Short-Term Municipal Income
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Short-Term Municipal Income Fund's performance for
the 12-month period ended March 31, 1999, and its outlook
for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio, we
The Fund seeks high current income aim to limit the Fund's exposure to any single credit or
exempt from Federal income tax market sector. In addition, we use a combination of
consistent with minimal investment strategies, including duration management
fluctuation of principal. The Fund (managing the Fund's sensitivity to interest rates), market
invests in investment grade, sector selection and individual credit reviews. We also seek
short-term municipal securities. to limit the distribution of capital gains when appropriate.
PERFORMANCE REVIEW As a short-term portfolio, the Fund maintains an average
For the 12-month period ended dollar-weighted maturity of less than three years and a
March 31, 1999, Nations Short-Term duration between one and one-quarter and two and
Municipal Income Fund Investor A three-quarters years.
Shares provided shareholders with HOW DID THE FUND PERFORM DURING THE PERIOD?**
a total return of 4.50%.* With a total return of 4.50%, the Fund (Investor A Shares)
outperformed its peer group, the Lipper Short Municipal Debt
Funds Universe, which returned 4.26%, for the 12-month
period ended March 31, 1999. The Fund benefited from an
overweighting in higher yield revenue bonds. This, coupled
with a slightly longer duration than its peers in a
declining rate environment, enabled the Fund to outperform
its peer group.
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 1.00%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Short Municipal Debt Funds Universe invest in
municipal debt issues with dollar-
weighted maturities of less than three years.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
8
<PAGE> 13
Nations
Short-Term Municipal Income
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN THE COMING
YEAR?
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
9
<PAGE> 14
Nations
Short-Term Municipal Income
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
4.0% Water
4.7% Housing
5.3% Electric
9.0% Transportation
9.1% Student Loan
9.6% Hospital
10.3% Prerefunded
13.1% General Obligation
17.1% Industrial Development Revenue/ Pollution Control Revenue
17.8% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Dauphin County, Pennsylvania,
General Authority, Revenue, (School
District Pooled Financing Program
II) Series 1997, (AMBAC Insured),
Mandatory Put 09/01/01 @ 100,
4.450% 09/01/32 4.2%
-----------------------------------------------
2 Lawrence County, Mississippi, PCR,
(Georgia-Pacific Corporation
Project) Series 1998, 5.400%
12/01/00 3.8%
-----------------------------------------------
3 New Jersey, Health Care Facilities,
Financing Authority Revenue,
(Riverwood Center Inc. Project)
Series 1991A, (FSA Insured),
Prerefunded 07/01/01 @ 102, 9.900%
07/01/21 3.7%
-----------------------------------------------
4 New York State, Thruway Authority,
Service Contract Revenue Refunding,
(Local Highway and Bridges Project)
Series 1997, 5.000% 04/01/01 3.1%
-----------------------------------------------
5 Washington State, Public Power
Supply Revenue Refunding, Series
1997A, 5.000% 07/01/00 3.1%
-----------------------------------------------
6 New York State, Dormitory
Authority, Revenue, (Service
Contract - Community Enhancement
Project) Series 1999A, 4.125%
04/01/01 2.9%
-----------------------------------------------
7 Phoenix, Arizona, Industrial
Development Authority, Single-
Family Mortgage Revenue, Series
1998D, 4.200% 06/01/02 2.7%
-----------------------------------------------
8 Panhandle-Plains, Texas, Higher
Education Authority, Revenue
Refunding, Series 1993E, AMT, (GTD
STD LNS), 5.550% 03/01/05 2.4%
-----------------------------------------------
9 Iowa, Student Loan Liquidity
Corporation, Student Loan Revenue,
(Iowa College Student Aid Project)
Series 1997B, AMT, 4.900% 12/01/05 2.4%
-----------------------------------------------
10 Grenada County, Mississippi,
Revenue Refunding, (Georgia-Pacific
Corporation Project) Series 1998,
4.300% 09/01/00 2.3%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
10
<PAGE> 15
Nations
Short-Term Municipal Income
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
SHORT- LEHMAN|3-
TERM|MUNICIPAL|INCOME|$12,435 YEAR|MUNICIPAL|BOND|INDEX|$12,964
----------------------------- ---------------------------------
<S> <C> <C>
'Oct. 2|1993' 9900.00 10000.00
'1993' 10005.00 10092.00
9910.00 9957.00
9967.00 10065.00
10051.00 10160.00
'1994' 10032.00 10161.00
10319.00 10445.00
10535.00 10667.00
10664.00 10894.00
'1995' 10840.00 11062.00
10888.00 11124.00
10959.00 11214.00
11109.00 11362.00
'1996' 11271.00 11554.00
11319.00 11600.00
11471.00 11815.00
11644.00 12017.00
'1997' 11783.00 12187.00
11899.00 12313.00
12018.00 12452.00
12198.00 12699.00
'1998' 12317.00 12822.00
'Mar. 31|1999' 12435.00 12964.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
SHORT- LEHMAN|3-
TERM|MUNICIPAL|INCOME|$12,561 YEAR|MUNICIPAL|BOND|INDEX|$12,964
----------------------------- ---------------------------------
<S> <C> <C>
'Oct. 2|1993' 10000.00 10000.00
'1993' 10106.00 10092.00
10010.00 9957.00
10068.00 10065.00
10153.00 10160.00
'1994' 10133.00 10161.00
10423.00 10445.00
10641.00 10667.00
10772.00 10894.00
'1995' 10950.00 11062.00
10998.00 11124.00
11069.00 11214.00
11221.00 11362.00
'1996' 11385.00 11554.00
11434.00 11600.00
11587.00 11815.00
11762.00 12017.00
'1997' 11902.00 12187.00
12020.00 12313.00
12140.00 12452.00
12321.00 12699.00
'1998' 12441.00 12822.00
'Mar. 31|1999' 12561.00 12964.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(10/2/93
through
3/31/99) 4.30% 4.11%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Short-
Term Municipal Income Fund
from the inception of the
shareclass. The Lehman
3-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 2 to 3
years. It is unavailable for
investment. The performance
of Primary A and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 9/30/92 10/2/92 10/2/92 6/7/93 6/7/93 10/2/92 10/2/92
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 4.71% 4.50% 3.47% 4.34% 4.34% 4.29% 3.29%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.73% 4.53% 4.18% 4.36% 4.36% 4.35% 4.35%
5 YEARS 4.85% 4.64% 4.43% 4.48% 4.48% -- --
SINCE INCEPTION 4.44% 4.30% 4.11% 4.08% 4.08% 4.57% 4.57%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 1.00%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
11
<PAGE> 16
Nations
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Intermediate Municipal Bond Fund's performance for
the 12-month period ended March 31, 1999, and its outlook
for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio, we
The Fund seeks high current income aim to limit the Fund's exposure to any single credit or
exempt from Federal income tax market sector. In addition, we use a combination of
consistent with moderate investment strategies, including duration management
fluctuation of principal. The Fund (managing the Fund's sensitivity to interest rates), market
invests in investment grade, sector selection and individual credit reviews. We also seek
intermediate-term municipal to limit the distribution of capital gains when appropriate.
securities. As an intermediate-term portfolio, the Fund maintains an
PERFORMANCE REVIEW average dollar-weighted maturity of between three and ten
For the 12-month period ended years and a duration between three and six years.
March 31, 1999, Nations HOW DID THE FUND PERFORM DURING THE PERIOD?**
Intermediate Municipal Bond Fund With a total return of 5.12%, the Fund (Investor A Shares)
Investor A Shares provided outperformed its peer group, the Lipper Intermediate
shareholders with a total return Municipal Debt Funds Universe, which returned 4.97% for the
of 5.12%.* 12-month period ended March 31, 1999. The Fund benefited
from an overweighting in higher yield revenue bonds.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN THE COMING
YEAR?
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Intermediate Municipal Debt Funds Universe
invest in municipal debt issues with
dollar-weighted maturities of five to ten years.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
12
<PAGE> 17
Nations
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
state and local government finances, and demand for
tax-exempt income appears to be firm. We continue to have
concerns about the electric utility industry as deregulation
moves forward and segments of the health-care industry as
recent changes in federal reimbursement policy are embraced.
The Y2K bug may also have a temporary negative impact on
valuations, as smaller issuers with less financial resources
deal with heightened technological needs. Longer term, these
investments in technology should be positive. While a
changing political environment is not a new phenomenon for
this market, it always seems to produce levels of investor
anxiety that can provide great opportunities.
</TABLE>
13
<PAGE> 18
Nations
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
5.2% Transportation
6.0% Housing
6.2% Electric
6.5% Student Loan
7.7% Hospital
8.7% Prerefunded
9.3% Industrial Development Revenue/ Pollution Control Revenue
11.0% State General Obligation
19.5% General Obligation
19.9% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Illinois State, Sales Tax Revenue
Refunding, Series 1993S, 6.000%
06/15/03 1.4%
-----------------------------------------------
2 Massachusetts State, GO Refunding,
Series 1993C, (AMBAC Insured),
4.950% 08/01/05 1.4%
-----------------------------------------------
3 Georgetown County, South Carolina,
PCR Refunding, (International Paper
Company) Series 1999A, 5.125%
02/01/12 1.3%
-----------------------------------------------
4 Chicago, Illinois, Park District,
GO, Series 1995, 6.600% 11/15/14 1.2%
-----------------------------------------------
5 Education Loans Inc., South Dakota,
Student Loan Revenue, Series 1998,
AMT, (GTD STD LNS), 4.950% 06/01/10 1.2%
-----------------------------------------------
6 Washington State, GO Refunding,
Series 1993R-93B, 5.125% 10/01/04 1.1%
-----------------------------------------------
7 Metropolitan Transportation
Authority of New York, Service
Contract Revenue, Series 1997,
5.250% 07/01/17 1.1%
-----------------------------------------------
8 North Carolina State, Public School
Building, GO, Series 1999, 4.600%
04/01/15 1.0%
-----------------------------------------------
9 Philadelphia, Pennsylvania, Water
and Wastewater Systems Revenue,
Series 1993, (FGIC Insured), 5.500%
06/15/03 1.0%
-----------------------------------------------
10 Pennsylvania, Housing Finance
Agency, Single-Family Mortgage
Revenue, Series 1997A-61, AMT,
5.450% 10/01/21 1.0%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
14
<PAGE> 19
Nations
Intermediate Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
INTERMEDIATE|MUNICIPAL|BOND|$12,818 INDEX|$13,923
----------------------------------- ----------------------------
<S> <C> <C>
'Aug. 17|1993' 9675.00 10000.00
9857.00 10289.00
'1993' 9978.00 10413.00
9570.00 10021.00
9620.00 10126.00
9656.00 10223.00
'1994' 9501.00 10125.00
10066.00 10658.00
10310.00 10960.00
10569.00 11273.00
'1995' 10882.00 11557.00
10813.00 11515.00
10870.00 11566.00
11072.00 11773.00
'1996' 11299.00 12061.00
11290.00 12048.00
11602.00 12379.00
11858.00 12710.00
'1997' 12108.00 12987.00
12194.00 13146.00
12337.00 13298.00
12666.00 13720.00
'1998' 12744.00 13806.00
'Mar. 31|1999' 12818.00 13923.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
INTERMEDIATE|MUNICIPAL|BOND|$13,248 INDEX|$13,923
----------------------------------- ----------------------------
<S> <C> <C>
'Aug. 17|1993' 10000.00 10000.00
10188.00 10289.00
'1993' 10313.00 10413.00
9891.00 10021.00
9943.00 10126.00
9981.00 10223.00
'1994' 9820.00 10125.00
10404.00 10658.00
10656.00 10960.00
10924.00 11273.00
'1995' 11248.00 11557.00
11176.00 11515.00
11235.00 11566.00
11444.00 11773.00
'1996' 11679.00 12061.00
11669.00 12048.00
11992.00 12379.00
12257.00 12710.00
'1997' 12516.00 12987.00
12604.00 13146.00
12752.00 13298.00
13092.00 13720.00
'1998' 13172.00 13806.00
'Mar. 31|1999' 13248.00 13923.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(8/17/93
through
3/31/99) 5.14% 4.52%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 7/30/93 8/17/93 8/17/93 12/2/93 12/2/93 11/3/94 11/3/94
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.33% 5.12% 1.66% 4.49% 1.49% 4.80% 3.80%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 6.04% 5.84% 4.67% 5.36% 5.05% 5.50% 5.50%
5 YEARS 6.23% 6.02% 5.32% 5.61% 5.61% -- --
SINCE INCEPTION 5.51% 5.14% 4.52% 4.72% 4.72% 6.85% 6.85%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
15
<PAGE> 20
Nations
Municipal Income
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Municipal Income Fund's performance for the 12-month
period ended March 31, 1999, and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio, we
The Fund seeks high current income aim to limit the Fund's exposure to any single credit or
exempt from Federal income tax market sector. In addition, we use a combination of
with the potential for principal investment strategies, including duration management
fluctuation associated with (managing the Fund's sensitivity to interest rates), market
investments in long-term municipal sector selection and individual credit reviews. We also seek
securities. The Fund invests in to limit the distribution of capital gains when appropriate.
investment grade, long-term As a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than eight and one half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations Municipal With a total return of 5.21%, the Fund (Investor A Shares)
Income Fund Investor A Shares outperformed its peer group, the Lipper General Municipal
provided shareholders with a total Debt Funds Universe, which returned 4.87% for the 12-month
return of 5.21%.* period ended March 31, 1999. The Fund benefited from an
overweighting in higher yield revenue bonds. It also
benefited from several holdings being pre-refunded over the
course of the year.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN THE COMING
YEAR?
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper General Municipal Debt Funds Universe invest
at least 65% of their assets in
municipal debt securities in the top four credit
ratings.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
16
<PAGE> 21
Nations
Municipal Income
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
state and local government finances, and demand for
tax-exempt income appears to be firm. We continue to have
concerns about the electric utility industry as deregulation
moves forward and segments of the health-care industry as
recent changes in federal reimbursement policy are embraced.
The Y2K bug may also have a temporary negative impact on
valuations, as smaller issuers with less financial resources
deal with heightened technological needs. Longer term, these
investments in technology should be positive. While a
changing political environment is not a new phenomenon for
this market, it always seems to produce levels of investor
anxiety that can provide great opportunities.
</TABLE>
17
<PAGE> 22
Nations
Municipal Income
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.9% Housing
4.7% Education
5.8% Water
5.8% Transportation
6.1% Electric
9.9% State General Obligation
11.5% Hospital
11.6% General Obligation
12.4% Prerefunded
24.6% Industrial Development Revenue/ Pollution Control Revenue
4.7% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 North Central Texas, Health
Facilities Development Corporation,
Revenue Refunding, (Baylor Health
Care System Project) Series 1998,
5.000% 05/15/17 1.9%
-----------------------------------------------
2 Polk County, Florida, Industrial
Development Authority, Solid Waste
Disposal Facilities Revenue, (Tampa
Electric Company Project) Series
1996, AMT, 5.850% 12/01/30 1.9%
-----------------------------------------------
3 North Carolina State, Highway GO,
Series 1997A, 4.500% 05/01/07 1.5%
-----------------------------------------------
4 Indianapolis, Indiana, Airport
Authority, Special Facilities
Revenue Refunding, (Federal Express
Corporation Project) Series 1998,
AMT, 5.500% 05/01/29 1.5%
-----------------------------------------------
5 Forsyth, Montana, PCR Refunding,
(Portland General Electric Company
Project) Series 1998A, Mandatory
Put 05/01/03 @ 100, 4.600% 05/01/33 1.2%
-----------------------------------------------
6 Murray City, Utah, Hospital Revenue
Refunding, (IHC Health Services,
Inc. Project) Series 1996, (MBIA
Insured), 5.000% 05/15/22 1.2%
-----------------------------------------------
7 Lewis and Clark County, Montana,
Environmental Facilities Revenue,
(Asarco, Inc. Project) Series 1998,
AMT, 5.850% 10/01/33 1.2%
-----------------------------------------------
8 Florence County, South Carolina,
Hospital Revenue, (McLeod Regional
Hospital Center Project) Series
1998A, (MBIA Insured), 5.000%
11/01/18 1.2%
-----------------------------------------------
9 Massachusetts, State Port
Authority, Special Facilities
Revenue, (Bosfuel Corporation
Project) Series 1997, AMT, (MBIA
Insured), 5.750% 07/01/39 1.1%
-----------------------------------------------
10 District of Columbia, Hospital
Revenue Refunding, (Medlantic
Healthcare Group Project) Series
1997A, (MBIA Insured), Prerefunded
08/15/07 @ 102, 5.375% 08/15/15 1.1%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
18
<PAGE> 23
Nations
Municipal Income
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
MUNICIPAL|INCOME|$17,331 INDEX|$18,443
------------------------ ---------------------
<S> <C> <C>
Feb. 1|1991 9525.00 10000.00
'1991' 10558.00 11065.00
10525.00 11098.00
10951.00 11519.00
11201.00 11825.00
'1992' 11425.00 12040.00
11885.00 12487.00
12357.00 12895.00
12834.00 13331.00
'1993' 12948.00 13518.00
12089.00 12776.00
12189.00 12916.00
12196.00 13005.00
'1994' 11962.00 12820.00
12914.00 13726.00
13240.00 14057.00
13632.00 14460.00
'1995' 14269.00 15057.00
14038.00 14877.00
14170.00 14990.00
14546.00 15333.00
'1996' 14911.00 15724.00
14854.00 15686.00
15374.00 16227.00
15857.00 16716.00
'1997' 16304.00 17169.00
16475.00 17366.00
16699.00 17630.00
17199.00 18171.00
'1998' 17247.00 18280.00
Mar. 31|1999 17331.00 18443.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
MUNICIPAL|INCOME|$18,196 INDEX|$18,443
------------------------ ---------------------
<S> <C> <C>
Feb. 1|1991 10000.00 10000.00
'1991' 11084.00 11065.00
11050.00 11098.00
11497.00 11519.00
11759.00 11825.00
'1992' 11995.00 12040.00
12478.00 12487.00
12973.00 12895.00
13474.00 13331.00
'1993' 13594.00 13518.00
12691.00 12776.00
12797.00 12916.00
12804.00 13005.00
'1994' 12559.00 12820.00
13558.00 13726.00
13900.00 14057.00
14311.00 14460.00
'1995' 14981.00 15057.00
14738.00 14877.00
14877.00 14990.00
15271.00 15333.00
'1996' 15654.00 15724.00
15595.00 15686.00
16141.00 16227.00
16648.00 16716.00
'1997' 17117.00 17169.00
17297.00 17366.00
17582.00 17630.00
18066.00 18171.00
'1998' 18107.00 18280.00
Mar. 31|1999 18196.00 18443.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(2/1/91
through
3/31/99) 7.61% 6.97%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Municipal
Income Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 2/1/91 2/1/91 2/1/91 6/7/93 6/7/93 6/17/92 6/17/92
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.42% 5.21% 0.23% 4.53% 0.53% 4.64% 3.64%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 7.60% 7.28% 5.55% 6.64% 5.75% 6.80% 6.80%
5 YEARS 7.69% 7.47% 6.43% 6.85% 6.70% 6.96% 6.96%
SINCE INCEPTION 7.78% 7.61% 6.97% 5.65% 5.65% 6.58% 6.58%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
19
<PAGE> 24
Nations Florida
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Florida Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Florida municipal securities, we aim
exempt from Federal income and the to limit the Fund's exposure to any single credit or market
Florida state intangibles taxes sector. In addition, we use a combination of investment
consistent with moderate strategies, including duration management (managing the
fluctuation of principal. The Fund Fund's sensitivity to interest rates), market sector
invests in investment grade, selection and individual credit reviews. We also seek to
intermediate-term municipal limit the distribution of capital gains when appropriate. As
securities. an intermediate-term portfolio, the Fund maintains an
PERFORMANCE REVIEW average dollar-weighted maturity of between three and ten
For the 12-month period ended years and a duration between three and six years.
March 31, 1999, Nations Florida HOW DID THE FUND PERFORM DURING THE PERIOD?**
Intermediate Municipal Bond Fund With a total return of 4.74%, the Fund (Investor A Shares)
Investor A Shares provided tracked its peer group, the Lipper Florida Intermediate
shareholders with a total return Municipal Debt Funds Universe, which returned 4.74%, for the
of 4.74%.* 12-month period ended March 31, 1999. The Fund benefited
from an overweighting in higher yield revenue bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN FLORIDA?
The state of Florida continues to achieve positive financial
results through prudent financial management and continued
economic expansion. This has led to an 'Aa2' rating from
Moody's Investors
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Florida Intermediate Municipal Debt Funds
Universe invest at least 65% of their assets
in municipal debt issues which are exempt from
taxation in Florida with dollar-weighted
maturities of five to ten years.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
20
<PAGE> 25
Nations Florida
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
Service, Inc., an 'AA+' rating from Standard & Poor's
Corporation and an 'AA' rating from Fitch IBCA, Inc. As one
of the country's leading vacation destinations, Florida
enjoyed strong economic growth, led by the services sector.
Service based jobs, mostly tourist and retiree related, now
account for over 35% of Florida's non-farm employment.
WHAT IS YOUR OUTLOOK FOR FLORIDA AND THE MUNICIPAL MARKET IN
THE COMING YEAR?
As a state with no income tax, Florida is dependent on sales
taxes for 70% of general state fund operations. To offset
its reliance on sales taxes, the state enacted a
constitutional amendment establishing a budget stabilization
fund that should reach $785 million by the end of 1999.
Additionally, Florida's lawsuit against the tobacco
companies, seeking compensation for the cost of medical care
incurred by the state for the treatment of smoking related
illnesses, could result in $11.3 billion in revenue to the
state over the next 25 years. Governor Bush recently
introduced legislation that seeks to repeal the Florida
intangibles tax. This legislation could have a negative
impact on the price of municipal securities within the
state. However, given Florida's financial strength and the
high demand for Florida bonds, the impact on municipal
securities should be marginal. The budget stabilization
fund, combined with growth in sales tax collections, are
just two of the positive factors contributing to Florida's
financial strength.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
21
<PAGE> 26
Nations Florida
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
4.4% Cash
4.8% Prerefunded
6.0% Housing
7.9% Industrial Development Revenue/ Pollution Control Revenue
8.1% Water
8.8% Electric
13.4% Transportation
14.4% General Obligation
17.3% Hospital
4.7% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Escambia County, Florida, Health
Facilities Revenue, (Charity
Obligation Group Project) Series
1998C, 5.000% 11/01/18 2.8%
-----------------------------------------------
2 Florida, Gas Utilities Revenue,
(Gas Project Number One) Series
1998, (FSA Insured), 5.000%
12/01/08 2.1%
-----------------------------------------------
3 Palm Beach County, Florida, Housing
Finance Authority, Single Family
Mortgage, Revenue Refunding, Series
1999A, AMT, (GNMA/FNMA COLL),
4.850% 04/01/32 1.7%
-----------------------------------------------
4 Florida, Housing Finance Agency,
Multi-Family Housing Revenue
Refunding, (Altamonte Project)
Series 1994C, Mandatory Put
12/01/03 @ 100, 7.000% 12/01/24 1.7%
-----------------------------------------------
5 Jacksonville, Florida, Health
Facilities Authority, Hospital
Revenue, Series 1997B, 5.400%
08/15/18 1.7%
-----------------------------------------------
6 Florida State, Board of Education,
Public Education Capital Outlay GO,
Series 1993D, 5.200% 06/01/11 1.6%
-----------------------------------------------
7 Hillsborough County, Florida, IDR
Refunding, (Tampa Electric Company
Project) Series 1992, 8.000%
05/01/22 1.6%
-----------------------------------------------
8 Escambia County, Florida, PCR,
(Champion International Corporation
Project) Series 1996, AMT, 6.400%
09/01/30 1.5%
-----------------------------------------------
9 Miami-Dade County, Florida,
Aviation Revenue, AMT, Series
1998C, (MBIA Insured), 5.250%
10/01/15 1.4%
-----------------------------------------------
10 Tampa, Florida, Sports Authority,
Local Optional Sales Tax Revenue,
(Stadium Project) Series 1997,
(MBIA Insured), 6.000% 01/01/07 1.4%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
22
<PAGE> 27
Nations Florida
Intermediate Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
FLORIDA|INTERMEDIATE|MUNICIPAL|BOND|$13,800 INDEX|$14,889
------------------------------------------- ----------------------------
<S> <C> <C>
Dec. 14|1992 9675.00 10000.00
'1992' 9712.00 10082.00
10042.00 10405.00
10340.00 10693.00
10656.00 11003.00
'1993' 10793.00 11136.00
10330.00 10716.00
10409.00 10829.00
10460.00 10933.00
'1994' 10329.00 10828.00
10928.00 11397.00
11190.00 11721.00
11445.00 12055.00
'1995' 11784.00 12359.00
11692.00 12314.00
11734.00 12369.00
11937.00 12590.00
'1996' 12201.00 12898.00
12162.00 12884.00
12489.00 13238.00
12796.00 13592.00
'1997' 13054.00 13888.00
13176.00 14058.00
13327.00 14221.00
13652.00 14672.00
'1998' 13728.00 14764.00
Mar. 31|1999 13800.00 14889.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
FLORIDA|INTERMEDIATE|MUNICIPAL|BOND|$14,263 INDEX|$14,889
------------------------------------------- ----------------------------
<S> <C> <C>
Dec. 14|1992 10000.00 10000.00
'1992' 10038.00 10082.00
10379.00 10405.00
10688.00 10693.00
11014.00 11003.00
'1993' 11156.00 11136.00
10677.00 10716.00
10758.00 10829.00
10811.00 10933.00
'1994' 10676.00 10828.00
11295.00 11397.00
11566.00 11721.00
11830.00 12055.00
'1995' 12180.00 12359.00
12085.00 12314.00
12128.00 12369.00
12338.00 12590.00
'1996' 12611.00 12898.00
12571.00 12884.00
12909.00 13238.00
13226.00 13592.00
'1997' 13492.00 13888.00
13619.00 14058.00
13774.00 14221.00
14110.00 14672.00
'1998' 14189.00 14764.00
Mar. 31|1999 14263.00 14889.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(12/14/92
through
3/31/99) 5.80% 5.24%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Florida
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 12/11/92 12/14/92 12/14/92 6/7/93 6/7/93 12/17/92 12/17/92
- ------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 4.95% 4.74% 1.35% 4.11% 1.11% 4.10% 3.10%
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.89% 5.68% 4.52% 5.19% 4.88% 5.18% 5.18%
5 YEARS 6.17% 5.96% 5.26% 5.54% 5.54% 5.54% 5.54%
SINCE INCEPTION 5.98% 5.80% 5.24% 4.91% 4.91% 5.34% 5.34%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
23
<PAGE> 28
Nations
Florida Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Florida Municipal Bond Fund's performance for the
12-month period ended March 31, 1999, and its outlook for
the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Florida municipal securities, we aim
exempt from Federal income and the to limit the Fund's exposure to any single credit or market
Florida state intangibles taxes sector. In addition, we use a combination of investment
with the potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. The Fund invests in limit the distribution of capital gains when appropriate. As
investment grade, long-term a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than eight and one-half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations Florida With a total return of 4.69%, the Fund (Investor A Shares)
Municipal Bond Fund Investor A marginally underperformed its peer group, the Lipper Florida
Shares provided shareholders with Municipal Debt Funds Universe, which returned 4.90%, for the
a total return of 4.69%.* 12-month period ended March 31, 1999. The Fund
underperformed due to its higher weighting in uninsured
bonds, particularly electric power bonds, than its peers.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN FLORIDA?
The state of Florida continues to achieve positive financial
results through prudent financial management and continued
economic expansion. This has led to an 'Aa2' rating from
Moody's Investors
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Florida Municipal Debt Funds Universe limit
their assets to those securities that are
exempt from taxation in Florida.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
24
<PAGE> 29
Nations
Florida Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
Service, Inc., an 'AA+' rating from Standard & Poor's
Corporation and an 'AA' rating from Fitch IBCA, Inc. As one
of the country's leading vacation destinations, Florida
enjoyed strong economic growth, led by the services sector.
Service based jobs, mostly tourist and retiree related, now
account for over 35% of Florida's non-farm employment.
WHAT IS YOUR OUTLOOK FOR FLORIDA AND THE MUNICIPAL MARKET IN
THE COMING YEAR?
As a state with no income tax, Florida is dependent on sales
taxes for 70% of general fund operations. To offset its
reliance on sales taxes, the state enacted a constitutional
amendment establishing a budget stabilization fund that
should reach $785 million by the end of 1999.
Additionally, Florida's lawsuit against the tobacco
companies, seeking compensation for the cost of medical care
incurred by the state for the treatment of smoking related
illnesses, could result in $11.3 billion in revenue to the
state over the next 25 years. Governor Bush recently
introduced legislation that seeks to repeal the Florida
intangibles tax. This legislation could have a negative
impact on the price of municipal securities within the
state. However, given Florida's financial strength and the
high demand for Florida bonds, the impact on municipal
securities should be marginal. The budget stabilization
fund, combined with growth in sales tax collections, are
just two of the positive factors contributing to Florida's
financial strength.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
25
<PAGE> 30
Nations
Florida Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
3.3% General Obligation
3.7% Resource Recovery
4.5% Industrial Development Revenue/Pollution Control Revenue
5.9% Housing
8.7% Prerefunded
9.0% State General Obligation
10.4% Special Tax
12.0% Transportation
14.6% Electric
19.8% Hospital
8.1% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Okaloosa County, Florida, Gas
Distribution Revenue Refunding,
Series 1994, (MBIA Insured),
Prerefunded 10/01/04 @ 102, 6.875%
10/01/19 3.7%
-----------------------------------------------
2 Collier County, Florida, Health
Facilities Authority, Revenue
Refunding, (Moorings, Inc. Project)
Series 1994, 7.000% 12/01/19 3.6%
-----------------------------------------------
3 Palm Beach County, Florida, Solid
Waste Authority, Revenue,
Unrefunded Balance, Series 1997A,
(AMBAC Insured), 6.000% 10/01/10 3.6%
-----------------------------------------------
4 Jacksonville, Florida, Sales Tax
Revenue, (River City Renaissance
Project) Series 1995, (FGIC
Insured), 5.650% 10/01/14 3.4%
-----------------------------------------------
5 Orange County, Florida, Health
Facilities Authority, Hospital
Revenue, (Orlando Regional
Healthcare Project) Series 1996A,
(MBIA Insured), 6.250% 10/01/16 3.3%
-----------------------------------------------
6 Jacksonville, Florida, Sales Tax
Revenue, (River City Renaissance
Project) Series 1995, (FGIC
Insured), 5.375% 10/01/18 3.2%
-----------------------------------------------
7 Puerto Rico Commonwealth, GO,
Series 1997, (MBIA Insured), 6.500%
07/01/15 3.2%
-----------------------------------------------
8 Guam, Airport Authority, Revenue,
Series 1993A, 6.375% 10/01/10 2.6%
-----------------------------------------------
9 South Miami, Florida, Health
Facilities Authority, Hospital
Revenue Refunding, (Baptist Health
Systems Obligation Group Project)
Series 1995, (MBIA Insured), 5.375%
10/01/16 2.6%
-----------------------------------------------
10 Escambia County, Florida, Health
Facilities Revenue, (Charity
Obligation Group Project) Series
1998C, 5.000% 11/01/28 2.5%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
26
<PAGE> 31
Nations
Florida Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
FLORIDA|MUNICIPAL|BOND|$12,380 INDEX|$13,931
------------------------------ ---------------------
<S> <C> <C>
Dec. 14|1992 9525.00 10000.00
'1993' 9522.00 10211.00
8760.00 9650.00
8828.00 9757.00
8839.00 9824.00
'1994' 8739.00 9683.00
9452.00 10368.00
9699.00 10618.00
9941.00 10923.00
'1995' 10456.00 11374.00
10194.00 11237.00
10287.00 11323.00
10525.00 11582.00
'1996' 10766.00 11877.00
10713.00 11849.00
11071.00 12258.00
11407.00 12627.00
'1997' 11704.00 12969.00
11826.00 13118.00
11963.00 13317.00
12343.00 13726.00
'1998' 12364.00 13808.00
Mar. 31|1999 12380.00 13931.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
FLORIDA|MUNICIPAL|BOND|$12,998 INDEX|$13,931
------------------------------ ---------------------
<S> <C> <C>
Dec. 14|1992 10000 10000
'1993' 9997 10211
9197 9650
9268 9757
9280 9824
'1994' 9174 9683
9923 10368
10183 10618
10436 10923
'1995' 10977 11374
10703 11237
10800 11323
11050 11582
'1996' 11303 11877
11247 11849
11623 12258
11976 12627
'1997' 11288 12969
12415 13118
12559 13317
12959 13726
'1998' 12981 13808
Mar. 31|1999 12998 13931
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(12/14/92
through
3/31/99) 5.07% 4.11%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Florida
Municipal Bond Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 12/11/92 12/14/92 12/14/92 6/7/93 6/7/93 12/17/92 12/17/92
- ------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 4.90% 4.69% -0.30% 4.01% 0.01% 4.01% 3.01%
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 6.90% 6.69% 4.99% 6.05% 5.15% 6.17% 6.17%
5 YEARS 7.38% 7.16% 6.12% 6.55% 6.39% -- --
SINCE INCEPTION 5.39% 5.07% 4.11% 4.42% 4.42% 8.45% 8.45%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
27
<PAGE> 32
Nations Georgia
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Georgia Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Georgia municipal securities, we aim
exempt from Federal and Georgia to limit the Fund's exposure to any single credit or market
state income taxes consistent with sector. In addition, we use a combination of investment
moderate fluctuation of principal. strategies, including duration management (managing the
The Fund invests in investment Fund's sensitivity to interest rates), market sector
grade, intermediate-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW an intermediate-term portfolio, the Fund maintains an
For the 12-month period ended average dollar-weighted maturity of between three and ten
March 31, 1999, Nations Georgia years and a duration between three and six years.
Intermediate Municipal Bond Fund HOW DID THE FUND PERFORM DURING THE PERIOD?**
Investor A Shares provided With a total return of 4.99%, the Fund (Investor A Shares)
shareholders with a total return outperformed its peer group, the Lipper Other States
of 4.99%.* Intermediate Municipal Debt Funds Universe, which returned
4.69%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN GEORGIA?
Despite a slowdown in non-farm employment growth, the state
of Georgia continued to benefit from strong financial
oversight and a constitutionally mandated limit on maximum
annual debt service.
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
28
<PAGE> 33
Nations Georgia
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
Debt service is approximately 5% of treasury receipts with a
constitutional limit of 10%. Georgia's fiscal strength and
foresight has been rewarded with an 'Aaa' rating from
Moody's Investors Service, Inc., an 'AAA' from Standard &
Poor's Corporation and an 'AAA' rating from Fitch IBCA, Inc.
As the textile industry in Georgia continues to contract due
to low cost products from overseas, growth in services and
retail trade have had an offsetting effect. Services and
retail trade have accounted for 80% of the jobs created
since 1990. Tax revenue growth for fiscal year 1998 was
5.4%, after a reduction of $500 million following the
elimination of the sales tax on food, and is projected to
grow by 6.8% for 1999.
WHAT IS YOUR OUTLOOK FOR GEORGIA AND THE MUNICIPAL MARKET IN
THE COMING YEAR?
In Georgia, wage inflation has become a concern as more and
more firms, fighting for a declining number of qualified
employees, choose to call Georgia home. As of July 1998,
Georgia's unemployment rate stood at just 4.4%. Increasing
demand for schools, highways and essential services are just
some of the challenges facing Georgia as job creation has
led to increases in urban center populations.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
29
<PAGE> 34
Nations Georgia
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.3% Special Tax
3.3% Education
4.3% State General Obligations
7.4% Electric
8.2% Transportation
9.8% Hospital
10.6% Prerefunded
10.7% Water
10.7% Industrial Development Revenue/ Pollution Control Revenue
29.4% General Obligation
3.3% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Effingham County, Georgia,
Development Authority, Solid Waste
Disposal Revenue, (Fort James
Corporation Project) Series 1998,
AMT, 5.625% 07/01/18 4.0%
-----------------------------------------------
2 Dalton, Georgia, Multiple Utility
Revenue Refunding, Series 1997,
(MBIA Insured), 6.000% 01/01/06 3.4%
-----------------------------------------------
3 Atlanta, Georgia, Airport
Facilities Revenue, Series 1991,
AMT, (MBIA Insured), 5.410%
01/01/10 2.8%
-----------------------------------------------
4 Forsyth County, Georgia, Water and
Sewer Authority, Revenue, Series
1998, 5.000% 04/01/02 2.5%
-----------------------------------------------
5 Georgia State, GO, Series 1998C,
5.750% 09/01/09 2.4%
-----------------------------------------------
6 Washington, District of Columbia,
Convention Center Revenue, Senior
Lien, Series 1998, (AMBAC Insured),
4.750% 10/01/28 2.3%
-----------------------------------------------
7 Clayton County, Georgia, Hospital
Authority, Revenue Anticipation
Certificates, (Southern Regional
Medical Center Project) Series
1998A, (MBIA Insured), 5.250%
08/01/09 2.1%
-----------------------------------------------
8 Metropolitan Atlanta Rapid Transit
Authority, Georgia, Revenue
Refunding, Series 1992P, (AMBAC
Insured), 5.900% 07/01/03 2.0%
-----------------------------------------------
9 Georgia State, GO, Series 1993C,
6.500% 07/01/05 1.9%
-----------------------------------------------
10 Baldwin County, Georgia, School
District, GO, Series 1997, (State
Aid Withholding), 4.500% 01/01/03 1.9%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
30
<PAGE> 35
Nations Georgia
Intermediate Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
GEORGIA|INTERMEDIATE|MUNICIPAL|BOND|$14,666 INDEX|$15,829
------------------------------------------- ----------------------------
<S> <C> <C>
May 4|1992 9675.00 10000.00
9951.00 10264.00
10199.00 10545.00
'1992' 10397.00 10718.00
10740.00 11061.00
11049.00 11368.00
11417.00 11697.00
'1993' 11529.00 11839.00
10996.00 11392.00
11080.00 11512.00
11130.00 11623.00
'1994' 10977.00 11511.00
11583.00 12116.00
11872.00 12461.00
12143.00 12816.00
'1995' 12522.00 13139.00
12394.00 13091.00
12441.00 13149.00
12679.00 13384.00
'1996' 12954.00 13712.00
12905.00 13697.00
13248.00 14074.00
13577.00 14450.00
'1997' 13859.00 14765.00
13970.00 14945.00
14125.00 15118.00
14528.00 15597.00
'1998' 14605.00 15696.00
Mar. 31|1999 14666.00 15829.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
GEORGIA|INTERMEDIATE|MUNICIPAL|BOND|$15,159 INDEX|$15,829
------------------------------------------- ----------------------------
<S> <C> <C>
May 4|1992 10000.00 10000.00
10285.00 10264.00
10541.00 10545.00
'1992' 10747.00 10718.00
11101.00 11061.00
11420.00 11368.00
11800.00 11697.00
'1993' 11916.00 11839.00
11365.00 11392.00
11452.00 11512.00
11504.00 11623.00
'1994' 11346.00 11511.00
11972.00 12116.00
12271.00 12461.00
12551.00 12816.00
'1995' 12943.00 13139.00
12811.00 13091.00
12859.00 13149.00
13105.00 13384.00
'1996' 13389.00 13712.00
13338.00 13697.00
13893.00 14074.00
14033.00 14450.00
'1997' 14325.00 14765.00
14439.00 14945.00
14599.00 15118.00
15016.00 15597.00
'1998' 15095.00 15696.00
Mar. 31|1999 15159.00 15829.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(5/4/92
through
3/31/99) 6.21% 5.70%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Georgia
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 3/1/92 5/4/92 5/4/92 6/7/93 6/7/93 6/17/92 6/17/92
- ------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.20% 4.99% 1.55% 4.37% 1.37% 4.35% 3.35%
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.98% 5.77% 4.61% 5.28% 4.98% 5.27% 5.27%
5 YEARS 6.14% 5.93% 5.23% 5.50% 5.50% 5.50% 5.50%
SINCE INCEPTION 6.35% 6.21% 5.70% 4.84% 4.84% 5.53% 5.53%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return
31
<PAGE> 36
Nations
Georgia Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Georgia Municipal Bond Fund's performance for the
12-month period ended March 31, 1999, and its outlook for
the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Georgia municipal securities, we aim
exempt from Federal and Georgia to limit the Fund's exposure to any single credit or market
state income taxes with the sector. In addition, we use a combination of investment
potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. The Fund invests in limit the distribution of capital gains when appropriate. As
investment grade, long-term a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than eight and one-half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations Georgia With a total return of 5.68%, the Fund (Investor A Shares)
Municipal Bond Fund Investor A outperformed its peer group, the Lipper Georgia Municipal
Shares provided shareholders with Debt Funds Universe, which returned 4.99%, for the 12-month
a total return of 5.68%.* period ended March 31, 1999. The Fund benefited from an
overweighting in higher yield revenue bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN GEORGIA?
Despite a slowdown in non-farm employment growth, the state
of Georgia continued to benefit from strong financial
oversight and a constitutionally mandated limit on maximum
annual debt service. Debt service is approximately 5% of
treasury receipts with a
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Georgia Municipal Debt Funds Universe limit
their assets to those securities that are
exempt from taxation in Georgia.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
32
<PAGE> 37
Nations
Georgia Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
constitutional limit of 10%. Georgia's fiscal strength and
foresight has been rewarded with an 'Aaa' rating from
Moody's Investors Service, Inc., an 'AAA' from Standard &
Poor's Corporation and an 'AAA' rating from Fitch IBCA, Inc.
As the textile industry in Georgia continues to contract due
to low cost products from overseas, growth in services and
retail trade have had an offsetting effect. Services and
retail trade have accounted for 80% of the jobs created
since 1990. Tax revenue growth for fiscal 1998 was 5.4%,
after a reduction of $500 million following the elimination
of the sales tax on food, and is projected to grow by 6.8%
for 1999.
WHAT IS YOUR OUTLOOK FOR GEORGIA AND THE MUNICIPAL MARKET IN
THE COMING YEAR?
In Georgia, wage inflation has become a concern as more and
more firms, fighting for a declining number of qualified
employees, choose to call Georgia home. As of July 1998,
Georgia's unemployment rate stood at just 4.4%. Increasing
demand for schools, highways and essential services are just
some of the challenges facing Georgia, as job creation has
led to increases in urban center populations.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
33
<PAGE> 38
Nations
Georgia Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.2% Transportation
2.7% Cash
4.2% Hospital
4.4% Electric
6.5% Education
11.5% Prerefunded
13.4% Water
13.6% Housing
17.7% Industrial Development Revenue/ Pollution Control Revenue
21.6% General Obligation
2.2% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Georgia State, Housing and Finance
Authority, Single-Family Mortgage
Revenue, Series 1998B-3, (FHA/VA
Insured), 4.400% 06/01/17 6.6%
-----------------------------------------------
2 Roswell, Georgia, GO, Series 1995,
5.600% 02/01/10 4.5%
-----------------------------------------------
3 Fulco, Georgia, Hospital Authority,
Revenue Anticipation Certificates,
(St. Joseph Hospital Project)
Series 1994, 5.500% 10/01/14 4.5%
-----------------------------------------------
4 Effingham County, Georgia,
Development Authority, Solid Waste
Disposal Revenue, (Fort James
Corporation Project) Series 1998,
AMT, 5.625% 07/01/18 4.2%
-----------------------------------------------
5 Brunswick and Glynn County,
Georgia, Development Authority,
Revenue Refunding, (Georgia-Pacific
Corporation Project) Series 1998,
AMT, 5.550% 03/01/26 4.2%
-----------------------------------------------
6 Savannah, Georgia, Hospital
Authority, Revenue, (St. Joseph's
Hospital - Candler Health Systems
Project) Series 1998A, (FSA
Insured), 5.000% 07/01/23 4.1%
-----------------------------------------------
7 De Kalb County, Georgia, GO
Refunding, Series 1993, 5.250%
01/01/20 3.2%
-----------------------------------------------
8 White County, Georgia, Industrial
Development Authority, Revenue
Refunding, (Springs Industries,
Inc. Project) Series 1992, 6.850%
06/01/10 2.6%
-----------------------------------------------
9 Peach County, Georgia, School
District, GO, Series 1994, (State
Aid Withholding, MBIA Insured),
6.500% 02/01/08 2.4%
-----------------------------------------------
10 Columbia County, Georgia, School
District, GO, Series 1994A, (MBIA
Insured), 6.250% 04/01/13 2.4%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
34
<PAGE> 39
Nations
Georgia Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
GEORGIA|MUNICIPAL|BOND|$12,444 INDEX|$13,643
------------------------------ ---------------------
<S> <C> <C>
Dec. 30|1993 9525.00 10000.00
8818.00 9451.00
8891.00 9555.00
8845.00 9621.00
'1994' 8705.00 9483.00
9397.00 10154.00
9633.00 10398.00
9905.00 10697.00
'1995' 10396.00 11139.00
10171.00 11005.00
10226.00 11089.00
10480.00 11343.00
'1996' 10729.00 11632.00
10685.00 11604.00
11050.00 12004.00
11340.00 12366.00
'1997' 11646.00 12701.00
11776.00 12847.00
11946.00 13042.00
12342.00 13442.00
'1998' 12377.00 13523.00
Mar 31|1999 12444.00 13643.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
GEORGIA|MUNICIPAL|BOND|$13,064 INDEX|$13,643
------------------------------ ---------------------
<S> <C> <C>
Dec. 30|1993 10000 10000
9268 9451
9334 9555
9286 9621
'1994' 9139 9483
9865 10154
10114 10398
10399 10697
'1995' 10915 11139
10678 11005
10736 11089
11003 11343
'1996' 11264 11632
11217 11604
11601 12004
11905 12366
'1997' 12227 12701
12363 12847
12541 13042
12958 13442
'1998' 12994 13523
Mar 31|1999 13064 13643
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(12/30/93
through
3/31/99) 5.23% 4.26%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Georgia
Municipal Bond Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 1/13/94 12/30/93 12/30/93 10/21/93 10/21/93 11/3/94 11/3/94
- ------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.89% 5.68% 0.65% 5.00% 1.00% 4.97% 3.97%
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 7.18% 6.96% 5.24% 6.32% 5.43% 6.43% 6.43%
5 YEARS 7.39% 7.13% 6.10% 6.55% 6.39% -- --
SINCE INCEPTION 5.39% 5.23% 4.26% 4.60% 4.60% 8.71% 8.71%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return
35
<PAGE> 40
Nations Maryland
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Maryland Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Maryland municipal securities, we aim
exempt from Federal and Maryland to limit the Fund's exposure to any single credit or market
state income taxes consistent with sector. In addition, we use a combination of investment
moderate fluctuation of principal. strategies, including duration management (managing the
The Fund invests in investment Fund's sensitivity to interest rates), market sector
grade, intermediate-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW an intermediate-term portfolio, the Fund maintains an
For the 12-month period ended average dollar-weighted maturity of between three and ten
March 31, 1999, Nations Maryland years and a duration between three and six years.
Intermediate Municipal Bond Fund HOW DID THE FUND PERFORM DURING THE PERIOD?**
Investor A Shares provided With a total return of 4.96%%, the Fund (Investor A Shares)
shareholders with a total return outperformed its peer group, the Lipper Other States
4.96%.* Intermediate Municipal Debt Funds Universe, which returned
4.69%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN MARYLAND?
With per capita personal income at 112% of the national
average, Maryland continued to rank as one of the wealthiest
states in the United States. Despite the 10% income tax
reduction passed by the
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
36
<PAGE> 41
Nations Maryland
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
legislature in 1997, which should reduce revenues by about
$306 million in fiscal 1999, Maryland has been able to
maintain its 'Aaa' rating from Moody's Investors Service,
Inc., 'AAA' from Standard & Poor's Corporation and 'AAA'
from Fitch IBCA, Inc. Conservative budgeting, flexible
financial management and strict oversight of general
obligation debt led to a budget surplus of $536 million in
fiscal 1998. An increase in income tax revenue of 10% over
fiscal 1997, due in large part to capital gains resulting
from the stock market's strength, is responsible for much of
the surplus. Maryland's moderately high debt burden is
carefully controlled due to a constitutional provision for
rapid amortization of outstanding tax supported debt.
WHAT IS YOUR OUTLOOK FOR MARYLAND AND THE MUNICIPAL MARKET
IN THE COMING YEAR?
Maryland's challenge comes in the years beyond 2001 when the
1997 income tax cut is conservatively forecasted to result
in small budget deficits. Maryland will have to continue to
exhibit fiscal restraint if it is to maintain its strong
financial performance.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
37
<PAGE> 42
Nations Maryland
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
1.9% Industrial Development Revenue/ Pollution Control Revenue
2.3% State General Obligation
2.4% Education
3.6% Resource Recovery
5.1% Water
6.9% Hospital
9.5% Housing
12.0% Transportation
12.9% Prerefunded
38.8% General Obligation
4.6% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Maryland State, Transportation
Authority, Transportation Revenue,
Series 1992, 5.700% 07/01/05 2.1%
-----------------------------------------------
2 Maryland State, Community
Development Administration,
Department of Housing and Community
Development, Revenue,
(Single-Family Program) Series
1998-3, AMT, 4.500% 04/01/08 1.9%
-----------------------------------------------
3 Virginia State, Transportation
Board Authority, Transportation
Contract Revenue, (Northern
Virginia Transportation District
Project) Series 1996A, 5.125%
05/15/21 1.9%
-----------------------------------------------
4 Maryland State, Community
Development Administration,
Department of Housing and Community
Development, Revenue,
(Single-Family Program) Series
1998-1, AMT, 5.150% 04/01/18 1.9%
-----------------------------------------------
5 Maryland State, Community
Development Administration,
Development Revenue, (Lexington
Terrace Senior Housing, LP Project)
Series 1998B, AMT, (HUD GRANT),
3.900% 10/01/02 1.9%
-----------------------------------------------
6 Washington, District of Columbia,
Metropolitan Area Transportation
Authority, Revenue Refunding,
Series 1993, (FGIC Insured), 5.000%
07/01/06 1.8%
-----------------------------------------------
7 Northeast Maryland, Solid Waste
Disposal Authority, Revenue, (Ogden
Martin Systems - Montgomery County
Residential Receivables Project)
Series 1993A, AMT, (MBIA-IBC
Insured), 5.800% 07/01/04 1.8%
-----------------------------------------------
8 Montgomery County, Maryland,
Consolidated Public Improvement GO,
Series 1993A, 4.900% 10/01/07 1.8%
-----------------------------------------------
9 Washington Suburban Sanitation
District Authority, Maryland, Water
Supply GO Refunding, Series 1993,
5.100% 12/01/07 1.7%
-----------------------------------------------
10 Washington State, Public Power
Supply System Revenue Refunding,
Series 1993A, 7.000% 07/01/08 1.7%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
38
<PAGE> 43
Nations Maryland
Intermediate Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
MARYLAND|INTERMEDIATE|MUNICIPAL|BOND|$16,464 INDEX|$18,526
-------------------------------------------- ----------------------------
<S> <C> <C>
Sep. 1|1990 9675.00 10000.00
'1990' 10068.00 10399.00
10297.00 10646.00
10459.00 10829.00
10762.00 11241.00
'1991' 11092.00 11612.00
11105.00 11602.00
11453.00 12013.00
11697.00 12342.00
'1992' 11875.00 12545.00
12227.00 12946.00
12551.00 13305.00
12946.00 13690.00
'1993' 13064.00 13856.00
12472.00 13334.00
12568.00 13474.00
12603.00 13603.00
'1994' 12449.00 13473.00
13143.00 14181.00
13494.00 14584.00
13799.00 15000.00
'1995' 14145.00 15378.00
14067.00 15322.00
14094.00 15390.00
14335.00 15665.00
'1996' 14630.00 16049.00
14576.00 16031.00
14948.00 16472.00
15281.00 16912.00
'1997' 15588.00 17281.00
15687.00 17491.00
15858.00 17694.00
16279.00 18255.00
'1998' 16382.00 18370.00
Mar. 31|1999 16464.00 18526.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
MARYLAND|INTERMEDIATE|MUNICIPAL|BOND|$17,017 INDEX|$18,526
-------------------------------------------- ----------------------------
<S> <C> <C>
Sep. 1|1990 10000 10000
'1990' 10407 10399
10643 10646
10810 10829
11124 11241
'1991' 11465 11612
11478 11602
11838 12013
12090 12342
'1992' 12274 12545
12837 12946
12972 13305
13381 13690
'1993' 13503 13856
12891 13334
12990 13474
13027 13603
'1994' 12868 13473
13584 14181
13947 14584
14262 15000
'1995' 14620 15378
14540 15322
14567 15390
14817 15665
'1996' 15122 16049
16066 16031
15450 16472
15794 16912
'1997' 16112 17281
16213 17491
16390 17694
16826 18255
'1998' 16932 18370
Mar. 31|1999 17017 18526
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(9/1/90
through
3/31/99) 6.39% 5.98%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Maryland
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 9/1/90 9/1/90 9/1/90 6/8/93 6/8/93 6/17/92 6/17/92
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.17% 4.96% 1.54% 4.33% 1.33% 4.31% 3.31%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.59% 5.38% 4.24% 4.89% 4.59% 4.89% 4.89%
5 YEARS 5.92% 5.71% 5.02% 5.28% 5.28% 5.28% 5.28%
SINCE INCEPTION 6.55% 6.39% 5.98% 4.60% 4.60% 5.08% 5.08%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return
39
<PAGE> 44
Nations
Maryland Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Maryland Municipal Bond Fund's performance for the
12-month period ended March 31, 1999, and its outlook for
the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Maryland municipal securities, we aim
exempt from Federal and Maryland to limit the Fund's exposure to any single credit or market
state income taxes with the sector. In addition, we use a combination of investment
potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. The Fund invests in limit the distribution of capital gains when appropriate. As
investment grade, long-term a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than 8 and one-half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations Maryland With a total return of 4.71%, the Fund (Investor A Shares)
Municipal Bond Fund Investor A slightly underperformed its peer group, the Lipper Maryland
Shares provided shareholders with Municipal Debt Funds Universe, which returned 4.92%, for the
a total return of 4.71%.* 12-month period ended March 31, 1999. Because of the Fund's
high quality nature, it did not benefit from the same level
of income as some of its peers. This, coupled with a
declining credit situation, caused the Fund to modestly
underperform the peer group.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN MARYLAND?
With per capita personal income at 112% of the national
average, Maryland continued to rank as one of the wealthiest
states in the
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Maryland Municipal Debt Funds Universe limit
their assets to those securities that are
exempt from taxation in Maryland.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
40
<PAGE> 45
Nations
Maryland Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
United States. Despite the 10% income tax reduction passed
by the legislature in 1997, which should reduce revenues by
about $306 million in fiscal 1999, Maryland has been able to
maintain its 'Aaa' rating from Moody's Investors Service,
Inc., 'AAA' from Standard & Poor's Corporation and 'AAA'
from Fitch IBCA, Inc. Conservative budgeting, flexible
financial management and strict oversight of general
obligation debt led to a budget surplus of $536 million in
fiscal 1998. An increase in income tax revenue of 10% over
fiscal 1997, due in large part to capital gains resulting
from the stock market's strength, is responsible for much of
the surplus. Maryland's moderately high debt burden is
carefully controlled due to a constitutional provision for
rapid amortization of outstanding tax supported debt.
WHAT IS YOUR OUTLOOK FOR MARYLAND AND THE MUNICIPAL MARKET
IN THE COMING YEAR?
Maryland's challenge comes in the years beyond 2001 when the
1997 income tax cut is conservatively forecasted to result
in small budget deficits. Maryland will have to continue to
exhibit fiscal restraint if it is to maintain its strong
financial performance.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
41
<PAGE> 46
Nations
Maryland Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.6% Water
3.1% Special Tax
3.8% Transportation
3.9% Industrial Development Revenue/ Pollution Control Revenue
7.2% Education
9.9% Prerefunded
11.4% Hospital
14.8% Housing
28.6% General Obligation
14.7% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Maryland State, State and Local
Facilities Loan GO, Series 1998-1,
4.750% 03/01/07 7.4%
-----------------------------------------------
2 Baltimore, Maryland, Exchanged
Revenue, Series 1996A, (FGIC
Insured), 5.900% 07/01/10 5.6%
-----------------------------------------------
3 Prince Georges County, Maryland,
Revenue Refunding, (Dimensions
Health Corporation Project) Series
1994, 5.300% 07/01/24 3.7%
-----------------------------------------------
4 Maryland State, Community
Development Administration,
Department of Housing and Community
Development, Revenue, Series 1999A,
AMT, 5.350% 07/01/41 3.6%
-----------------------------------------------
5 Maryland State, Health and Higher
Education Facilities Authority,
Revenue, (John Hopkins Hospital
Redevelopment Project) Series 1979,
5.750% 07/01/09 3.2%
-----------------------------------------------
6 Washington Suburban Sanitation
District Authority, Maryland, Sewer
Disposal GO, Series 1992,
Prerefunded 06/01/02 @ 102, 5.800%
06/01/03 3.1%
-----------------------------------------------
7 Maryland State, State and Local
Facilities Loan GO, Series 1997-2,
5.000% 08/01/06 3.0%
-----------------------------------------------
8 Baltimore County, Maryland, Pension
Funding GO Refunding, Series 1998,
5.000% 08/01/09 3.0%
-----------------------------------------------
9 Baltimore, Maryland, Convention
Center Revenue Refunding, Series
1998, (MBIA Insured), 5.000%
09/01/06 3.0%
-----------------------------------------------
10 Washington County, Maryland,
Suburban Sanitation District
Authority, General Construction GO
Refunding, Series 1993, 5.000%
06/01/04 3.0%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
42
<PAGE> 47
Nations
Maryland Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
MARYLAND|MUNICIPAL|BOND|$12,523 LEHMAN|MUNICIPAL|BOND|INDEX|$13,809
------------------------------- -----------------------------------
<S> <C> <C>
Nov. 4|1993 9525.00 10000.00
'1993' 9767.00 10121.00
8993.00 9565.00
9034.00 9671.00
9015.00 9737.00
'1994' 8863.00 9598.00
9580.00 10277.00
9794.00 10524.00
10044.00 10826.00
'1995' 10551.00 11273.00
10319.00 11138.00
10384.00 11223.00
10619.00 11480.00
'1996' 10868.00 11773.00
10832.00 11744.00
11167.00 12150.00
11514.00 12515.00
'1997' 11846.00 12854.00
11960.00 13002.00
12110.00 13200.00
12458.00 13605.00
'1998' 12499.00 13687.00
Mar. 31|1999 12523.00 13809.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
MARYLAND|MUNICIPAL|BOND|$13,147 LEHMAN|MUNICIPAL|BOND|INDEX|$13,809
------------------------------- -----------------------------------
<S> <C> <C>
Nov. 4|1993 10000 10000
'1993' 10254 10121
9442 9565
9484 9671
9464 9737
'1994' 9305 9598
10057 10277
10283 10524
10545 10826
'1995' 11077 11273
10834 11138
10902 11223
11148 11480
'1996' 11410 11773
11373 11744
11724 12150
12089 12515
'1997' 12437 12854
12556 13002
12714 13200
13079 13605
'1998' 13122 13687
Mar. 31|1999 13147 13809
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(11/4/93
through
3/31/99) 5.20% 4.25%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Maryland
Municipal Bond Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 9/20/94 11/4/93 11/4/93 10/21/93 10/21/93 11/3/94 11/3/94
- -------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 4.92% 4.71% -0.30% 4.03% 0.03% 4.01% 3.01%
- -------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 6.88% 6.67% 4.95% 6.03% 5.13% 6.17% 6.17%
5 YEARS -- 6.85% 5.82% 6.23% 6.07% -- --
SINCE INCEPTION 7.62% 5.20% 4.25% 4.17% 4.17% 8.23% 8.23%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
43
<PAGE> 48
Nations North Carolina
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations North Carolina Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of North Carolina municipal securities,
exempt from Federal and North we aim to limit the Fund's exposure to any single credit or
Carolina state income taxes market sector. In addition, we use a combination of
consistent with moderate investment strategies, including duration management
fluctuation of principal. The Fund (managing the Fund's sensitivity to interest rates), market
invests in investment grade, sector selection and individual credit reviews. We also seek
intermediate-term municipal to limit the distribution of capital gains when appropriate.
securities. As an intermediate-term portfolio, the Fund maintains an
PERFORMANCE REVIEW average dollar-weighted maturity of between three and ten
For the 12-months ended March 31, years and a duration between three and six years.
1999, Nations North Carolina HOW DID THE FUND PERFORM DURING THE PERIOD?**
Intermediate Municipal Bond Fund With a total return of 4.82%, the Fund (Investor A Shares)
Investor A Shares provided outperformed its peer group, the Lipper Other States
shareholders with a total return Intermediate Municipal Debt Funds Universe, which returned
of 4.82%.* 4.69%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN NORTH
CAROLINA?
North Carolina has benefited from an increasingly diverse
economy, a conservative debt policy and a continuing trend
of sound financial management. This has earned the state the
highest credit rating
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
44
<PAGE> 49
Nations North Carolina
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
from Moody's Investors Service, Inc., Standard & Poor's
Corporation and Fitch IBCA, Inc. The annual rate of non-farm
employment growth over the last five years has been 3.3%,
meeting the national average over the same period. An
increase in the general fund balance of 61.6% over fiscal
1997 helps to offset a rising debt per capita of $387 that
is still below the $505 national median.
WHAT IS YOUR OUTLOOK FOR NORTH CAROLINA AND THE MUNICIPAL
MARKET IN THE COMING YEAR?
North Carolina recently agreed to settle several cases
involving the taxation of retirement benefits of former
state, federal and local employees. The $799 million
settlement will have a negative impact on the state's budget
over the next two years but should not constrain the state's
financial flexibility. With the unemployment rate down to
3.3%, North Carolina's labor market remains tight and this
has not gone unnoticed by businesses seeking to enter the
state. However, North Carolina is still an attractive
relocation option as the state remains the banking center of
the south and is home to several prestigious universities.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
45
<PAGE> 50
Nations North Carolina
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
1.5% Transportation
3.9% State General Obligation
4.3% Industrial Development Revenue/Pollution Control Revenue
4.3% Electric
5.6% Housing
6.2% Water
8.0% Education
13.0% Prerefunded
22.6% Hospital
28.9% General Obligation
1.7% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 North Carolina State, GO, Series
1997A, 5.100% 03/01/06 2.0%
-----------------------------------------------
2 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Grace Hospital, Inc. -
Morganton Project) Series 1996,
(AMBAC Insured), 5.250% 10/01/16 1.9%
-----------------------------------------------
3 North Carolina, Housing Finance
Agency, Single-Family Housing
Revenue, (Home Ownership Project)
Series 1998A-1, AMT, 5.350%
01/01/17 1.9%
-----------------------------------------------
4 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue Refunding, (Novant Health,
Inc. Project) Series 1998A, (MBIA
Insured), 5.000% 10/01/07 1.9%
-----------------------------------------------
5 University of North Carolina,
University Utilities Systems
Revenue Refunding, Series 1993,
5.200% 08/01/06 1.8%
-----------------------------------------------
6 Martin County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority,
Revenue, (Weyerhaeuser Company
Project) Series 1985, 8.500%
06/15/99 1.8%
-----------------------------------------------
7 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Rex Hospital, Inc.
Project) Series 1993, Prerefunded
06/01/03 @ 102, 6.250% 06/01/17 1.6%
-----------------------------------------------
8 Charlotte, North Carolina, GO
Refunding, Series 1995, 5.000%
06/01/05 1.5%
-----------------------------------------------
9 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue Refunding, (Presbyterian
Health Care Services Project)
Series 1993, 5.500% 10/01/14 1.5%
-----------------------------------------------
10 North Carolina, Municipal Power
Agency Number 1, Revenue Refunding,
(Catawba Electric Project) Series
1992, (FGIC Insured), 5.200%
01/01/00 1.4%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
46
<PAGE> 51
Nations
North Carolina Intermediate
Municipal Bond Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
NORTH|CAROLINA|INTERMEDIATE|MUNICIPAL|BOND|$13,675 INDEX|$14,889
-------------------------------------------------- ----------------------------
<S> <C> <C>
Dec. 14|1992 9675.00 10000.00
'1992' 9703.00 10082.00
10020.00 10405.00
10314.00 10693.00
10631.00 11003.00
'1993' 10701.00 11136.00
10265.00 10716.00
10320.00 10829.00
10368.00 10933.00
'1994' 10243.00 10828.00
10835.00 11397.00
11090.00 11721.00
11371.00 12055.00
'1995' 11668.00 12359.00
11570.00 12314.00
11628.00 12369.00
11847.00 12590.00
'1996' 12094.00 12898.00
12062.00 12884.00
12395.00 13238.00
12687.00 13592.00
'1997' 12942.00 13888.00
13048.00 14058.00
13185.00 14221.00
13530.00 14672.00
'1998' 13609.00 14764.00
Mar. 31|1999 13675.00 14889.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
NORTH|CAROLINA|INTERMEDIATE|MUNICIPAL|BOND|$14,135 INDEX|$14,889
-------------------------------------------------- ----------------------------
<S> <C> <C>
Dec. 14|1992 10000 10000
'1992' 10028 10082
10357 10405
10660 10693
10988 11003
'1993' 11060 11136
10610 10716
10666 10829
10716 10933
'1994' 10587 10828
11199 11397
11463 11721
11753 12055
'1995' 12060 12359
11958 12314
12018 12369
12245 12590
'1996' 12500 12898
12468 12884
12812 13238
13113 13592
'1997' 13376 13888
13486 14058
13628 14221
13985 14672
'1998' 14066 14764
Mar. 31|1999 14135 14889
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(12/14/92
through
3/31/99) 5.66% 5.10%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations North
Carolina Intermediate
Municipal Bond Fund from the
inception of the shareclass.
The Lehman 7-Year Municipal
Bond Index is a broad-based,
unmanaged, total return
index composed of
investment-grade bonds with
maturities of 7 to 8 years.
It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 12/11/92 12/14/92 12/14/92 6/7/93 6/7/93 12/16/92 12/16/92
- -------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.03% 4.82% 1.41% 4.20% 1.20% 4.18% 3.18%
- -------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.94% 5.73% 4.57% 5.24% 4.94% 5.24% 5.24%
5 YEARS 6.12% 5.91% 5.21% 5.49% 5.49% 5.48% 5.48%
SINCE INCEPTION 5.87% 5.66% 5.10% 4.81% 4.81% 5.21% 5.21%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
47
<PAGE> 52
Nations
North Carolina Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations North Carolina Municipal Bond Fund's performance for
the 12-month period ended March 31, 1999, and its outlook
for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of North Carolina municipal securities,
exempt from Federal and North we aim to limit the Fund's exposure to any single credit or
Carolina state income taxes with market sector. In addition, we use a combination of
the potential for principal investment strategies, including duration management
fluctuation associated with (managing the Fund's sensitivity to interest rates), market
investments in long-term municipal sector selection and individual credit reviews. We also seek
securities. The Fund invests in to limit the distribution of capital gains when appropriate.
investment grade, long-term As a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than eight and one-half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations North With a total return of 5.20%, the Fund (Investor A Shares)
Carolina Municipal Bond Fund outperformed its peer group, the Lipper North Carolina
Investor A Shares provided Municipal Debt Funds Universe, which returned 5.00%, for the
shareholders with a total return 12-month period ended March 31, 1999. The Fund benefited
of 5.20%.* from an overweighting in higher yield revenue bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN NORTH
CAROLINA?
North Carolina has benefited from an increasingly diverse
economy, a conservative debt policy and a continuing trend
of sound financial management. This has earned the state the
highest possible credit
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper North Carolina Municipal Debt Funds Universe
limit their assets to those securities
that are exempt from taxation in North Carolina.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
48
<PAGE> 53
Nations
North Carolina Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
ratings from Moody's Investors Service, Inc., Standard &
Poor's Corporation and Fitch IBCA, Inc. The annual rate of
non-farm employment growth over the last five years has been
3.3%, meeting the national average over the same period. An
increase in the general fund balance of 61.6% over fiscal
1997 helps to offset a rising debt per capita of $387 that
is still below the $505 national median.
WHAT IS YOUR OUTLOOK FOR NORTH CAROLINA AND THE MUNICIPAL
MARKET IN THE COMING YEAR?
North Carolina recently agreed to settle several cases
involving the taxation of retirement benefits of former
state, federal and local employees. The $799 million
settlement will have a negative impact on the state's budget
over the next two years but should not constrain the state's
financial flexibility. With the unemployment rate down to
3.3%, North Carolina's labor market remains tight and this
has not gone unnoticed by businesses seeking to enter the
state. However, North Carolina is still an attractive
relocation option as the state remains the banking center of
the south and is home to several prestigious universities.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
49
<PAGE> 54
Nations
North Carolina Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.6% State Obligation
2.7% Electric
3.6% Education
6.7% Water
8.1% Prerefunded
10.2% Housing
15.8% General Obligation
17.8% Industrial Development Revenue/ Pollution Control Revenue
25.0% Hospital
7.5% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Mecklenburg County, North Carolina,
Industrial Facilities and Pollution
Control Finance Authority, Revenue
Refunding, (Fluor Corporation
Project) Series 1993, 5.250%
12/01/09 4.9%
-----------------------------------------------
2 Martin County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, Solid
Waste Disposal Revenue,
(Weyerhaeuser Company Project)
Series 1993, AMT, 5.650% 12/01/23 4.8%
-----------------------------------------------
3 Charlotte-Mecklenburg Hospital
Authority, Revenue, (Carolinas
Healthcare System Project) Series
1997A, 5.125% 01/15/22 4.7%
-----------------------------------------------
4 Charlotte-Mecklenburg Hospital
Authority, Revenue, (Carolinas
Healthcare System Project) Series
1997A, 6.000% 01/15/09 4.3%
-----------------------------------------------
5 Onslow County, North Carolina,
Combined Enterprise Systems,
Revenue, Series 1994, (MBIA
Insured), 5.875% 06/01/09 3.9%
-----------------------------------------------
6 University of North Carolina,
Chapel Hill, University Revenue
Refunding, Series 1996, 5.000%
02/15/29 3.5%
-----------------------------------------------
7 Greensboro, North Carolina, Special
Obligation Revenue, Series 1997,
5.200% 06/01/11 3.4%
-----------------------------------------------
8 North Carolina, Housing Finance
Agency, Revenue, (Home Ownership
Project) Series 1998A-2, AMT,
5.200% 01/01/20 2.9%
-----------------------------------------------
9 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Gaston Memorial Hospital
Project) Series 1995, (AMBAC-TCRS
Insured), 5.250% 02/15/07 2.9%
-----------------------------------------------
10 Mecklenburg County, North Carolina,
GO Refunding, Series 1993, 6.000%
04/01/11 2.7%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
50
<PAGE> 55
Nations
North Carolina Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
NORTH|CAROLINA|MUNICIPAL|BOND|$12,520 INDEX|$13,809
------------------------------------- ---------------------
<S> <C> <C>
Nov. 1|1993 9525.00 10000.00
'1993' 9673.00 10121.00
8919.00 9565.00
8931.00 9671.00
8923.00 9737.00
'1994' 8781.00 9598.00
9518.00 10277.00
9737.00 10524.00
9980.00 10826.00
'1995' 10550.00 11273.00
10282.00 11138.00
10328.00 11223.00
10575.00 11480.00
'1996' 10814.00 11773.00
10758.00 11744.00
11114.00 12150.00
11461.00 12515.00
'1997' 11771.00 12854.00
11903.00 13002.00
12072.00 13200.00
12424.00 13605.00
'1998' 12473.00 13687.00
Mar. 31|1999 12520.00 13809.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
NORTH|CAROLINA|MUNCIPAL|BOND|$13,145 INDEX|$13,809
------------------------------------ ---------------------
<S> <C> <C>
Nov. 1|1993 10000 10000
'1993' 10155 10121
9364 9565
9375 9671
9365 9737
'1994' 9219 9598
9993 10277
10223 10524
10477 10826
'1995' 11076 11273
10794 11138
10843 11223
11102 11480
'1996' 11353 11773
11294 11744
11668 12150
12033 12515
'1997' 12358 12854
12486 13002
12674 13200
13044 13605
'1998' 13095 13687
Mar. 31|1999 13145 13809
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(11/1/93
through
3/31/99) 5.18% 4.23%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations North
Carolina Municipal Bond Fund
from the inception of the
shareclass. The Lehman
Municipal Bond Index is a
broad-based, unmanaged,
total return index composed
of 8,000 investment-grade,
long-term maturity bonds. It
is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 1/11/94 11/1/93 11/1/93 10/21/93 10/21/93 11/3/94 11/3/94
- -------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.39% 5.20% 0.19% 4.53% 0.53% 4.50% 3.50%
- -------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 6.99% 6.78% 5.08% 6.14% 5.25% 6.26% 6.26%
5 YEARS 7.23% 7.02% 5.97% 6.40% 6.24% -- --
SINCE INCEPTION 5.21% 5.18% 4.23% 4.50% 4.50% 8.60% 8.60%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
51
<PAGE> 56
Nations South Carolina
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations South Carolina Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of South Carolina municipal securities,
exempt from Federal and South we aim to limit the Fund's exposure to any single credit or
Carolina state income taxes market sector. In addition, we use a combination of
consistent with moderate investment strategies, including duration management
fluctuation of principal. The Fund (managing the Fund's sensitivity to interest rates), market
invests in investment grade, sector selection and individual credit reviews. We also seek
intermediate-term municipal to limit the distribution of capital gains when appropriate.
securities. As an intermediate-term portfolio, the Fund maintains an
PERFORMANCE REVIEW average dollar-weighted maturity of between three and ten
For the 12-month period ended years and a duration between three and six years.
March 31, 1999, Nations South HOW DID THE FUND PERFORM DURING THE PERIOD?**
Carolina Intermediate Municipal With a total return of 5.01%, the Fund (Investor A Shares)
Bond Fund Investor A Shares outperformed its peer group, the Lipper Other States
provided shareholders with a total Intermediate Municipal Debt Funds Universe, which returned
return of 5.01%.* 4.69%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN SOUTH
CAROLINA?
South Carolina has benefited from a very low debt burden,
rising income levels and an increasingly diverse economy.
This has led to
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
52
<PAGE> 57
Nations South Carolina
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
South Carolina receiving the highest credit rating from
Moody's Investors Service, Inc., Standard & Poor's
Corporation and Fitch IBCA, Inc. In 1998, South Carolina was
ranked the third fastest growing state when ranked by growth
in personal income. Income levels have been bolstered by a
tight labor market where 70,000 new jobs were created in
1998, bringing the unemployment rate down to 3.5%. South
Carolina's net tax supported debt stands at roughly $1.2
billion, or $323 per capita, with the median for all states
at $505. General fund revenue collections increased by 5.7%,
exceeding expenditures for the first time since 1995. The
expansion of manufacturing, specifically autos and related
parts, improved South Carolina's low but rising income
levels and provided a much needed infusion of new jobs.
WHAT IS YOUR OUTLOOK FOR SOUTH CAROLINA AND THE MUNICIPAL
MARKET IN THE COMING YEAR?
As production in South Carolina's textile industry declines
due to low cost products from overseas, growth in tourism
and service related jobs has helped to fill the void left by
a contracting textile industry. However, more than most
states, South Carolina is still tied to the cyclical nature
of the broader United States economy.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
53
<PAGE> 58
Nations South Carolina
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
1.4% State General Obligation
1.6% Education
3.2% Prerefunded
3.7% Transportation
4.9% Housing
11.4% Industrial Development Revenue/ Pollution Control Revenue
14.7% Electric
18.4% Water
18.8% Hospital
20.0% General Obligation
1.9% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Piedmont Municipal Power Agency,
South Carolina, Electric Revenue
Refunding, Series 1996B, (MBIA
Insured), 5.250% 01/01/09 3.5%
-----------------------------------------------
2 South Carolina, Jobs Economic
Development Authority, Hospital
Facilities Revenue, (South Carolina
Baptist Hospital Project) Series
1993, (AMBAC Insured), 5.450%
08/01/15 2.5%
-----------------------------------------------
3 Columbia, South Carolina,
Waterworks and Sewer System,
Revenue Refunding, Series 1993,
5.500% 02/01/09 2.4%
-----------------------------------------------
4 South Carolina State, GO Capital
Improvement, Series 1996A, 3.500%
07/01/06 2.2%
-----------------------------------------------
5 Charleston, South Carolina,
Waterworks and Sewer Capital
Improvement Revenue Refunding,
Series 1998, 5.250% 01/01/08 2.0%
-----------------------------------------------
6 South Carolina State, Housing
Finance and Development Authority,
Multi-Family Housing Revenue,
(United Dominion Realty Trust
Project) Series 1994, AMT,
Mandatory Put 05/01/04 @ 100,
6.500% 05/01/24 1.9%
-----------------------------------------------
7 South Carolina, Transportation
Infrastructure Revenue, Series
1998A, (MBIA Insured), 5.000%
10/01/12 1.9%
-----------------------------------------------
8 Lexington County, South Carolina,
Health Services District, Revenue
Refunding, Series 1997, (FSA
Insured), 5.125% 11/01/21 1.8%
-----------------------------------------------
9 South Carolina, State Housing
Finance and Development Authority,
Revenue Refunding, Series 1992A,
(FNMA/FHA COLL), 6.800% 11/15/11 1.8%
-----------------------------------------------
10 Medical University of South
Carolina, Hospital Facilities,
Revenue Refunding, Series 1990A,
7.000% 07/01/02 1.8%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
54
<PAGE> 59
Nations
South Carolina Intermediate
Municipal Bond Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
SOUTH|CAROLINA|INTERMEDIATE|MUNICIPAL|BOND|$14,504 INDEX|$15,829
-------------------------------------------------- ----------------------------
<S> <C> <C>
'May 5|1992' 9675.00 10000.00
'1992' 9882.00 10264.00
10097.00 10545.00
10252.00 10718.00
'1993' 10579.00 11061.00
10841.00 11368.00
11148.00 11697.00
11262.00 11839.00
'1994' 10865.00 11392.00
10931.00 11512.00
11005.00 11623.00
10912.00 11511.00
'1995' 11477.00 12116.00
11758.00 12461.00
12020.00 12816.00
12378.00 13139.00
'1996' 12277.00 13091.00
12328.00 13149.00
12577.00 13384.00
12844.00 13712.00
'1997' 12830.00 13697.00
13149.00 14074.00
13412.00 14450.00
13693.00 14765.00
'1998' 13812.00 14945.00
13986.00 15118.00
14342.00 15597.00
14421.00 15696.00
Mar. 31|1999 14504.00 15829.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
SOUTH|CAROLINA|INTERMEDIATE|MUNICIPAL|BOND|$14,991 INDEX|$15,829
-------------------------------------------------- ----------------------------
<S> <C> <C>
'May 5|1992' 10000.00 10000.00
'1992' 10214.00 10264.00
10437.00 10545.00
10596.00 10718.00
'1993' 10934.00 11061.00
11206.00 11368.00
11523.00 11697.00
11640.00 11839.00
'1994' 11233.00 11392.00
11298.00 11512.00
11376.00 11623.00
11278.00 11511.00
'1995' 11862.00 12116.00
12153.00 12461.00
12424.00 12816.00
12794.00 13139.00
'1996' 12689.00 13091.00
12740.00 13149.00
13000.00 13384.00
13275.00 13712.00
'1997' 13261.00 13697.00
13591.00 14074.00
13863.00 14450.00
14153.00 14765.00
'1998' 14276.00 14945.00
14456.00 15118.00
14824.00 15597.00
14906.00 15696.00
Mar. 31|1999 14991.00 15829.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(5/5/92
through
3/31/99) 6.04% 5.53%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations South
Carolina Intermediate
Municipal Bond Fund from the
inception of the shareclass.
The Lehman 7-Year Municipal
Bond Index is a broad-based,
unmanaged, total return
index composed of
investment-grade bonds with
maturities of 7 to 8 years.
It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 1/6/92 5/5/92 5/5/92 6/8/93 6/8/93 6/17/92 6/17/92
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.22% 5.01% 1.62% 4.39% 1.39% 4.36% 3.36%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.93% 5.72% 4.57% 5.23% 4.92% 5.22% 5.22%
5 YEARS 6.15% 5.94% 5.25% 5.52% 5.52% 5.52% 5.52%
SINCE INCEPTION 6.15% 6.04% 5.53% 4.91% 4.91% 5.44% 5.44%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
55
<PAGE> 60
Nations
South Carolina Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations South Carolina Municipal Bond Fund's performance for
the 12-month period ended March 31, 1999, and its outlook
for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of South Carolina municipal securities,
exempt from Federal and South we aim to limit the Fund's exposure to any single credit or
Carolina state income taxes with market sector. In addition, we use a combination of
the potential for principal investment strategies, including duration management
fluctuation associated with (managing the Fund's sensitivity to interest rates), market
investments in long-term municipal sector selection and individual credit reviews. We also seek
securities. The Fund invests in to limit the distribution of capital gains when appropriate.
investment grade, long-term As a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than eight and one-half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations South With a total return of 4.92%, the Fund (Investor A Shares)
Carolina Municipal Bond Fund outperformed its peer group, the Lipper South Carolina
Investor A Shares provided Municipal Debt Funds Universe, which returned 4.71%, for the
shareholders with a total return 12-month period ended March 31, 1999. The Fund benefited
of 4.92%.* from an overweighting in higher yield revenue bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN SOUTH
CAROLINA?
South Carolina has benefited from a very low debt burden,
rising income levels and an increasingly diverse economy.
This has led to South Carolina receiving the highest credit
rating from Moody's Investors Service, Inc., Standard &
Poor's Corporation and Fitch
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper South Carolina Municipal Debt Funds Universe
limit their assets to those securities
that are exempt from taxation in South Carolina.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
56
<PAGE> 61
Nations
South Carolina Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
IBCA, Inc. In 1998, South Carolina was ranked the third
fastest growing state when ranked by growth in personal
income. Income levels have been bolstered by a tight labor
market where 70,000 new jobs were created in 1998, bringing
the unemployment rate down to 3.5%. South Carolina's net tax
supported debt stands at roughly $1.2 billion, or $323 per
capita, with the median for all states at $505. General fund
revenue collections increased by 5.7%, exceeding
expenditures for the first time since 1995. The expansion of
manufacturing, specifically autos and related parts,
improved South Carolina's low but rising income levels and
provided a much needed infusion of new jobs.
WHAT IS YOUR OUTLOOK FOR SOUTH CAROLINA AND THE MUNICIPAL
MARKET IN THE COMING YEAR?
As production in South Carolina's textile industry declines
due to low cost products from overseas, growth in tourism
and service related jobs has helped to fill the void left by
a contracting textile industry. However, more than most
states, South Carolina is still tied to the cyclical nature
of the broader United States economy.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
57
<PAGE> 62
Nations
South Carolina Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.9% Housing
3.0% Cash
4.2% Education
6.5% Water
6.6% Prerefunded
7.4% Transportation
10.5% Hospital
13.4% Electric
16.8% General Obligation
26.7% Industrial Development Revenue/Pollution Control Revenue
2.0% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Columbia, South Carolina,
Waterworks and Sewer System,
Revenue Refunding, Series 1993,
5.500% 02/01/09 4.4%
-----------------------------------------------
2 Chester County, South Carolina,
IDR, Refunding, (Springs Industries
Inc. Project) Series 1992, 7.350%
02/01/14 4.3%
-----------------------------------------------
3 Lexington County, South Carolina,
Health Service District, Revenue
Refunding, (Health Service District
and Lexmed, Inc.) Series 1997, (FSA
Insured), 5.500% 11/01/06 4.3%
-----------------------------------------------
4 Piedmont Municipal Power Agency,
South Carolina, Electric Revenue
Refunding, Series 1996B, (MBIA
Insured), 5.250% 01/01/09 4.3%
-----------------------------------------------
5 South Carolina, Educational
Facilities for NonProfit
Institutions, Revenue, (Furman
University Project) Series 1996A,
(MBIA Insured), 5.500% 10/01/26 4.2%
-----------------------------------------------
6 South Carolina State, Public
Service Authority, Revenue
Refunding, Series 1993C,
(AMBAC-TCRS Insured), 5.125%
01/01/32 4.0%
-----------------------------------------------
7 South Carolina, Transportation
Infrastructure Revenue, Series
1998A, (MBIA Insured), 4.500%
10/01/17 3.8%
-----------------------------------------------
8 York County, South Carolina, PCR
Refunding, (Bowater Inc. Project)
Series 1991B, 6.850% 04/01/01 3.8%
-----------------------------------------------
9 Richland County, South Carolina,
School District Number 1, GO,
Series 1996, (SCSDE), 4.625%
03/01/22 3.8%
-----------------------------------------------
10 Berkeley County, South Carolina,
PCR, (South Carolina Electric and
Gas Company Project) Series 1984,
6.500% 10/01/14 3.3%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
58
<PAGE> 63
Nations
South Carolina Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
SOUTH|CAROLINA|MUNICIPAL|BOND|$12,943 INDEX|$13,809
------------------------------------- ---------------------
<S> <C> <C>
Nov. 8|1993 9525.00 10000.00
'1993' 9753.00 10121.00
9199.00 9565.00
9241.00 9671.00
9244.00 9737.00
'1994' 9144.00 9598.00
9863.00 10277.00
10109.00 10524.00
10390.00 10826.00
'1995' 10918.00 11273.00
10688.00 11138.00
10773.00 11223.00
11029.00 11480.00
'1996' 11274.00 11773.00
11234.00 11744.00
11598.00 12150.00
11897.00 12515.00
'1997' 12224.00 12854.00
12336.00 13002.00
12537.00 13200.00
12885.00 13605.00
'1998' 12867.00 13687.00
Mar. 31|1999 12943.00 13809.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
SOUTH|CAROLINA|MUNICIPAL|BOND|$13,588 INDEX|$13,809
------------------------------------- ---------------------
<S> <C> <C>
Nov. 8|1993 10000.00 10000.00
'1993' 10239.00 10121.00
9657.00 9565.00
9702.00 9671.00
9705.00 9737.00
'1994' 9600.00 9598.00
10355.00 10277.00
10613.00 10524.00
10908.00 10826.00
'1995' 11463.00 11273.00
11221.00 11138.00
11310.00 11223.00
11579.00 11480.00
'1996' 11637.00 11773.00
11794.00 11744.00
12176.00 12150.00
12490.00 12515.00
'1997' 12834.00 12854.00
12951.00 13002.00
13162.00 13200.00
13528.00 13605.00
'1998' 13509.00 13687.00
Mar. 31|1999 13588.00 13809.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(11/8/93
through
3/31/99) 5.85% 4.90%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations South
Carolina Municipal Bond Fund
from the inception of the
shareclass. The Lehman
Municipal Bond Index is a
broad-based, unmanaged,
total return index composed
of 8,000 investment-grade,
long-term maturity bonds. It
is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN(AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 12/27/93 11/8/93 11/8/93 10/21/93 10/21/93 11/3/94 11/3/94
- ------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.13% 4.92% -0.04% 4.25% 0.25% 4.23% 3.23%
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 6.81% 6.59% 4.87% 5.95% 5.06% 6.08% 6.08%
5 YEARS 7.28% 7.07% 6.02% 6.45% 6.29% -- --
SINCE INCEPTION 5.77% 5.85% 4.90% 4.96% 4.96% 8.39% 8.39%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
59
<PAGE> 64
Nations Tennessee
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Tennessee Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Tennessee municipal securities, we
exempt from Federal income tax and aim to limit the Fund's exposure to any single credit or
the Tennessee Hall Income Tax on market sector. In addition, we use a combination of
unearned income consistent with investment strategies, including duration management
moderate fluctuation of principal. (managing the Fund's sensitivity to interest rates), market
The Fund invests in investment sector selection and individual credit reviews. We also seek
grade, intermediate-term municipal to limit the distribution of capital gains when appropriate.
securities. As an intermediate-term portfolio, the Fund maintains an
PERFORMANCE REVIEW average dollar-weighted maturity of between three and ten
For the 12-month period ended years and a duration between three and six years.
March 31, 1999, Nations Tennessee HOW DID THE FUND PERFORM DURING THE PERIOD?**
Intermediate Municipal Bond Fund With a total return of 4.97%, the Fund (Investor A Shares)
Investor A Shares provided outperformed its peer group, the Lipper Other States
shareholders with a total return Intermediate Municipal Debt Funds Universe, which returned
of 4.97%.* 4.69%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN TENNESSEE?
Tennessee's very low debt burden, use of pay-as-you-go
financing and conservative financial policies all combined
to give the state an 'Aaa' rating from Moody's Investors
Service, Inc., an 'AAA' from
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
60
<PAGE> 65
Nations Tennessee
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
Standard & Poor's Corporation and an 'AAA' from Fitch IBCA,
Inc. Tennessee's conservative policies have resulted in a
very low debt per capita of $203 versus the national median
of $505. Growth in the services industry, which helped to
offset losses in the textile industry, has slowed to 1.5%
after gaining nearly 5% in 1997.
WHAT IS YOUR OUTLOOK FOR TENNESSEE AND THE MUNICIPAL MARKET
IN THE COMING YEAR?
As with other southeastern states, Tennessee's growth has
been restrained by a shortage of qualified workers and the
contraction of the textile industry. This has resulted in
growth numbers that are less than half the national rate.
Despite the decline in growth, Tennessee still managed to
grow tax collections for fiscal 1998 by 6%. In 1999, 10% of
the annual growth in state tax revenues will be allocated to
the state's undesignated reserve account. Despite a slowdown
in economic growth, Tennessee remains attractive as a
pro-business state with a low cost of living, affordable
housing and conservative financial management.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
61
<PAGE> 66
Nations Tennessee
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
1.9% Resource Recovery
2.7% Education
4.0% State General Obligation
4.0% Cash
5.4% Electric
7.4% Water
9.9% Housing
12.0% Industrial Development Revenue/Pollution Control Revenue
17.8% Hospital
33.9% General Obligation
1.0% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Dickson County, Tennessee, GO,
Series 1997, (FGIC Insured), 5.00% 4.8%
-----------------------------------------------
2 Maury County, Tennessee, Industrial
Development Board, Multi-Modal PCR
Refunding, (General Motors
Corporation - Saturn Corporation
Project) Series 1994, 6.50%
09/01/24 4.5%
-----------------------------------------------
3 McMinn County, Tennessee,
Industrial Development Board, PCR
Refunding, (Bowater Inc. Project)
Series 1991, 6.85% 04/01/01 3.4%
-----------------------------------------------
4 Rutherford County, Tennessee,
Public Improvement GO, Series 1996,
6.00% 04/01/06 3.3%
-----------------------------------------------
5 Chattanooga-Hamilton County,
Tennessee, Hospital Authority
Revenue Refunding, (Erlanger
Medical Center Project) Series
1993, (FSA Insured), 5.38% 10/01/04 3.3%
-----------------------------------------------
6 Hamilton County, Tennessee, GO,
Series 1994, 5.00% 07/01/01 3.3%
-----------------------------------------------
7 Williamson County, Tennessee, GO
Refunding, Series 1998, 5.25%
09/01/10 3.2%
-----------------------------------------------
8 Memphis, Tennessee, Water Division,
Revenue Refunding, Series 1998,
5.25% 01/01/12 3.1%
-----------------------------------------------
9 Knox County, Tennessee, Health
Educational and Housing Facilities
Board, Hospital Facilities
Improvement Revenue Refunding,
(Baptist Health System of East
Tennessee, Inc. Project) Series
1996, (CONNIE LEE Insured), 5.50%
04/15/11 3.1%
-----------------------------------------------
10 Memphis, Tennessee, Water Division,
Revenue Refunding, Series 1992,
5.90% 01/01/04 3.0%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
62
<PAGE> 67
Nations
Tennessee Intermediate Municipal
Bond Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
TENNESSEE|INTERMEDIATE|MUNICIPAL|BOND|$13,147 INDEX|$14,310
--------------------------------------------- ----------------------------
<S> <C> <C>
Apr. 2|1993 9675.00 10000.00
9900.00 10277.00
10205.00 10575.00
'1993' 10326.00 10703.00
9889.00 10299.00
9956.00 10408.00
9998.00 10508.00
'1994' 9846.00 10407.00
10413.00 10954.00
10657.00 11265.00
10892.00 11586.00
'1995' 11218.00 11878.00
11141.00 11835.00
11194.00 11888.00
11386.00 12100.00
'1996' 11636.00 12397.00
11623.00 12383.00
11914.00 12724.00
12172.00 13063.00
'1997' 12416.00 13348.00
12526.00 13511.00
12663.00 13668.00
12997.00 14101.00
'1998' 13061.00 14190.00
Mar. 31|1999 13147.00 14310.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
TENNESSEE|INTERMEDIATE|MUNICIPAL|BOND|$13,589 INDEX|$14,310
--------------------------------------------- ----------------------------
<S> <C> <C>
Apr. 2|1993 10000.00 10000.00
10233.00 10277.00
10548.00 10575.00
'1993' 10673.00 10703.00
10221.00 10299.00
10291.00 10408.00
10334.00 10508.00
'1994' 10177.00 10407.00
10763.00 10954.00
11015.00 11265.00
11258.00 11586.00
'1995' 11595.00 11878.00
11515.00 11835.00
11570.00 11888.00
11768.00 12100.00
'1996' 12027.00 12397.00
12014.00 12383.00
12314.00 12724.00
12581.00 13063.00
'1997' 12833.00 13348.00
12947.00 13511.00
13088.00 13668.00
13434.00 14101.00
'1998' 13600.00 14190.00
Mar. 31|1999 13589.00 14310.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(4/2/93
through
3/31/99) 5.25% 4.66%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Tennessee
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 4/13/93 4/2/93 4/2/93 6/10/93 6/10/93 11/3/94 11/3/94
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.18% 4.97% 1.55% 4.34% 1.34% 4.28% 3.28%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.89% 5.68% 4.52% 5.19% 4.89% 5.21% 5.21%
5 YEARS 6.07% 5.86% 5.16% 5.44% 5.44% -- --
SINCE INCEPTION 5.36% 5.25% 4.66% 4.80% 4.80% 6.64% 6.64%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
63
<PAGE> 68
Nations
Tennessee Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Tennessee Municipal Bond Fund's performance for the
12-month period ended March 31, 1999, and its outlook for
the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Tennessee municipal securities, we
exempt from Federal income tax and aim to limit the Fund's exposure to any single credit or
the Tennessee Hall Income Tax on market sector. In addition, we use a combination of
unearned income with the potential investment strategies, including duration management
for principal fluctuation (managing the Fund's sensitivity to interest rates), market
associated with investments in sector selection and individual credit reviews. We also seek
long-term municipal securities. to limit the distribution of capital gains when appropriate.
The Fund invests in investment As a long-term portfolio, the Fund maintains an average
grade, long-term municipal dollar-weighted maturity of greater than eight and one-half
securities. years and a duration between six and nine years.
PERFORMANCE REVIEW HOW DID THE FUND PERFORM DURING THE PERIOD?**
For the 12-month period ended With a total return of 5.32%, the Fund (Investor A Shares)
March 31, 1999, Nations Tennessee outperformed its peer group, the Lipper Tennessee Municipal
Municipal Bond Fund Investor A Debt Funds Universe, which returned 5.07%, for the 12-month
Shares provided shareholders with period ended March 31, 1999. The Fund benefited from an
a total return of 5.32%.* overweighting in higher yield revenue bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN TENNESSEE?
Tennessee's very low debt burden, use of pay-as-you-go
financing and conservative financial policies all combined
to give the state an 'Aaa' rating from Moody's Investors
Service, Inc., an 'AAA' from Standard & Poor's Corporation
and an 'AAA' from Fitch IBCA, Inc.
</TABLE>
*The performance shown includes the effect of fee
waivers and expense reimbursements by the investment
adviser and the administrator, which have the effect
of increasing total return. It
does not reflect the maximum front-end sales charge
of 4.75%, which may apply to purchases of
Investor A Shares. For standardized performance,
please refer to the "Fund Performance"
table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Tennessee Municipal Debt Funds Universe limit
their assets to those securities that are
exempt from taxation in Tennessee.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
64
<PAGE> 69
Nations
Tennessee Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
Tennessee's conservative policies have resulted in a very
low debt per capita of $203 versus the national median of
$505. Growth in the services industry, which helped to
offset losses in the textile industry, has slowed to 1.5%
after gaining nearly 5% in 1997.
WHAT IS YOUR OUTLOOK FOR TENNESSEE AND THE MUNICIPAL MARKET
IN THE COMING YEAR?
As with other southeastern states, Tennessee's growth has
been restrained by a shortage of qualified workers and the
contraction of the textile industry. This has resulted in
growth numbers that are less than half the national rate.
Despite the decline in growth, Tennessee still managed to
grow tax collections for fiscal 1998 by 6%. In 1999, 10% of
the annual growth in state tax revenues will be allocated to
the state's undesignated reserve account. Despite a slowdown
in economic growth, Tennessee remains attractive as a
pro-business state with a low cost of living, affordable
housing and conservative financial management.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
65
<PAGE> 70
Nations
Tennessee Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.7% Prerefunded
2.8% State General Obligation
6.3% Electric
7.9% Cash
8.4% Education
11.4% Water
11.8% General Obligation
18.1% Industrial Development Revenue/Pollution Control Revenue
21.8% Hospital
8.8% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Memphis, Tennessee, Water Division,
Revenue Refunding, Series 1998,
5.25% 01/01/11 5.2%
-----------------------------------------------
2 Metropolitan Government, Nashville
and Davidson County, Tennessee,
Health and Educational Facilities
Board, Improvement Revenue
Refunding, (Meharry Medical College
Project) Series 1996, (AMBAC
Insured), 6.00% 5.1%
-----------------------------------------------
3 Humphreys County, Tennessee,
Industrial Development Board, Solid
Waste Disposal, (E.I. duPont de
Nemours and Company Project) Series
1994, AMT, 6.70% 05/01/24 5.0%
-----------------------------------------------
4 Maury County, Tennessee, Industrial
Development Board, Multi-Modal PCR
Refunding, (General Motors
Corporation - Saturn Corporation
Project) Series 1994, 6.50%
09/01/24 5.0%
-----------------------------------------------
5 Puerto Rico, Industrial Tourist
Educational Medical and
Environmental Control Facilities
Financing Authority, Revenue,
(Ryder Memorial Hospital Project)
Series 1994A, 6.60% 05/01/14 4.9%
-----------------------------------------------
6 Metropolitan Government, Nashville
and Davidson County, Tennessee,
Hospital Revenue, (Charity
Obligation Group Project) Series
1999A, 5.00% 11/01/14 4.5
-----------------------------------------------
7 Blount County, Tennessee, Public
Building Authority, Public Facility
Revenue, Series 1998, (FGIC
Insured), 5.00% 04/01/19 4.5%
-----------------------------------------------
8 Knox County, Tennessee, Health
Educational and Housing Facilities
Board, Hospital Facilities
Improvement Revenue Refunding,
(Baptist Health System of East
Tennessee, Inc. Project) Series
1996, (CONNIE LEE Insured), 5.50%
04/15/11 3.8%
-----------------------------------------------
9 Knox County, Tennessee, Public
Improvement GO, Series 1998, 4.75%
04/01/19 3.5%
-----------------------------------------------
10 Shelby County, Tennessee, Public
Improvement GO Refunding, Series
1999A, 4.75% 05/01/21 3.5%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
66
<PAGE> 71
Nations
Tennessee Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
TENNESSEE|MUNICIPAL|BOND|$12,915 INDEX|$13,809
-------------------------------- ---------------------
<S> <C> <C>
Nov. 2|1993 9525.00 10000.00
'1993' 9692.00 10121.00
9071.00 9565.00
9133.00 9671.00
9156.00 9737.00
'1994' 9045.00 9598.00
9762.00 10277.00
9976.00 10524.00
10246.00 10826.00
'1995' 10782.00 11273.00
10592.00 11138.00
10650.00 11223.00
10889.00 11480.00
'1996' 11165.00 11773.00
11123.00 11744.00
11496.00 12150.00
11849.00 12515.00
'1997' 12175.00 12854.00
12262.00 13002.00
12434.00 13200.00
12819.00 13605.00
'1998' 12849.00 13687.00
Mar. 31|1999 12915.00 13809.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
TENNESSEE|MUNICIPAL|BOND|$13,559 INDEX|$13,809
-------------------------------- ---------------------
<S> <C> <C>
Nov. 2|1993 10000.00 10000.00
'1993' 10175.00 10121.00
9524.00 9565.00
9589.00 9671.00
9613.00 9737.00
'1994' 9496.00 9598.00
10249.00 10277.00
10474.00 10524.00
10757.00 10826.00
'1995' 11320.00 11273.00
11120.00 11138.00
11181.00 11223.00
11433.00 11480.00
'1996' 11722.00 11773.00
11677.00 11744.00
12070.00 12150.00
12440.00 12515.00
'1997' 12782.00 12854.00
12373.00 13002.00
13054.00 13200.00
13458.00 13605.00
'1998' 13490.00 13687.00
Mar. 31|1999 13559.00 13809.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(11/2/93
through
3/31/99) 5.79% 4.85%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Tennessee
Municipal Bond Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 3/2/94 11/2/93 11/2/93 10/21/93 10/21/93 11/3/94 11/3/94
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.53% 5.32% 0.31% 4.64% 0.64% 4.62% 3.62%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 7.04% 6.83% 5.12% 6.19% 5.30% 6.30% 6.30%
5 YEARS 7.53% 7.32% 6.28% 6.70% 6.54%
SINCE INCEPTION 6.65% 5.79% 4.85% 4.92% 4.92% 8.64% 8.64%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers and expense
reimbursements by the investment adviser and the administrator, which have the
effect of increasing total return.
67
<PAGE> 72
Nations
Texas Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Texas Intermediate Municipal Bond Fund's performance
for the 12-month period ended March 31, 1999, and its
outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Texas municipal securities, we aim to
exempt from Federal income tax limit the Fund's exposure to any single credit or market
consistent with moderate sector. In addition, we use a combination of investment
fluctuation of principal. The Fund strategies, including duration management (managing the
invests in investment grade, Fund's sensitivity to interest rates), market sector
intermediate-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW an intermediate-term portfolio, the Fund maintains an
For the 12-month period ended average dollar-weighted maturity of between three and ten
March 31, 1999, Nations Texas years and a duration between three and six years.
Intermediate Municipal Bond Fund HOW DID THE FUND PERFORM DURING THE PERIOD?**
Investor A Shares provided With a total return of 4.77%, the Fund (Investor A Shares)
shareholders with a total outperformed its peer group, the Lipper Other States
return of 4.77%* Intermediate Municipal Debt Funds Universe, which returned
4.69%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN TEXAS?
Despite budget deficits in the mid-1980's, Texas has
historically taken a conservative approach to financial
management. With low debt levels and a very strong and
diverse economy, Texas has been
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
68
<PAGE> 73
Nations
Texas Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
able to maintain its 'Aa2' rating from Moody's
Investors Service, Inc., 'AA' from Standard & Poor's
Corporation and 'AA+' from Fitch IBCA, Inc. As unemployment
in Texas has fallen below 5% for the first time in the
1990s, wage inflation remains in check as the state's income
levels still remain at 91% of the national average. Texas's
debt burden remains below the national average at $300 per
capita, with the majority of outstanding debt
self-supporting.
WHAT IS YOUR OUTLOOK FOR TEXAS AND THE MUNICIPAL MARKET IN
THE COMING YEAR?
Last year, sales tax revenue accounted for 28% of total
revenue. This proportion should continue to increase
marginally as Texas continues to have one of the strongest
economies in the United States. Texas' lawsuit against the
tobacco companies, seeking compensation for the cost of
medical care incurred by the state for the treatment of
smoking related illnesses, could result in $14.5 billion in
revenue to the state over the next 25 years.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
69
<PAGE> 74
Nations
Texas Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.0% Industrial Development Revenue/ Pollution Control Revenue
2.1% Housing
5.5% Education
6.1% State General Obligation
7.5% Hospital
7.8% Water
8.0% Transportation
9.1% Prerefunded
9.7% Electric
37.4% General Obligation
4.8% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Texas, Municipal Power Agency,
Revenue Refunding, Series 1993,
(MBIA Insured), 5.25% 09/01/05 4.0%
-----------------------------------------------
2 Lower Colorado River Authority,
Texas, Revenue Refunding, Junior
Lien, (Fifth-Supply Project) Series
1993, (AMBAC Insured), 5.30%
01/01/06 3.2%
-----------------------------------------------
3 Texas State, Turnpike Authority of
Dallas, North Tollway Revenue,
(President George Bush Turnpike)
Series 1995, (FGIC Insured), 5.25% 2.5%
-----------------------------------------------
4 North Central, Texas, Health
Facilities Development Corporation,
Revenue Refunding, (Baylor Health
Care Systems Project) Series 1995,
5.50% 1.8%
-----------------------------------------------
5 University of Texas, Permanent
University Fund, Revenue, Series
1997, (PUFG Insured), 5.25%
07/01/12 1.8%
-----------------------------------------------
6 Harris County, Texas, Toll Road
Revenue Refunding, Senior Lien,
Series 1994, (FGIC Insured), 5.00%
08/15/16 1.8%
-----------------------------------------------
7 Houston, Texas, Airport Systems
Revenue, Series 1998B, AMT, (FGIC
Insured), 5.00% 07/01/25 1.7%
-----------------------------------------------
8 Houston, Texas, Water and Sewer
Systems Revenue, Unrefunded
Balance, Prior Lien, Series 1992B,
5.90% 12/01/03 1.7%
-----------------------------------------------
9 Texas, Municipal Power Agency,
Revenue Refunding, Series 1992,
(MBIA Insured), Prerefunded
09/01/02 @ 102, 5.90% 09/01/04 1.6%
-----------------------------------------------
10 Austin, Texas, GO Refunding, Series
1993, 5.50% 09/01/04 1.5%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
70
<PAGE> 75
Nations
Texas Intermediate Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
TEXAS|INTERMEDIATE|MUNICIPAL|BOND|$13,166 INDEX|$14,557
----------------------------------------- ----------------------------
<S> <C> <C>
Feb. 4|1993 9675.00 10000.00
9770.00 10172.00
9996.00 10454.00
10269.00 10757.00
'1993' 10365.00 10887.00
9948.00 10477.00
10053.00 10587.00
10119.00 10688.00
'1994' 10001.00 10586.00
10489.00 11142.00
10701.00 11459.00
10946.00 11786.00
'1995' 11271.00 12082.00
11184.00 12039.00
11216.00 12092.00
11431.00 12308.00
'1996' 11658.00 12610.00
11650.00 12596.00
11942.00 12942.00
12228.00 13288.00
'1997' 12464.00 13578.00
12567.00 13743.00
12698.00 13903.00
13037.00 14344.00
'1998' 13111.00 14434.00
Mar. 31|1999 13166.00 14557.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
TEXAS|INTERMEDIATE|MUNICIPAL|BOND|$13,608 INDEX|$14,557
----------------------------------------- ----------------------------
<S> <C> <C>
Feb. 4|1993 10000.00 10000.00
10098.00 10172.00
10332.00 10454.00
10614.00 10757.00
'1993' 10713.00 10887.00
10282.00 10477.00
10390.00 10587.00
10458.00 10688.00
'1994' 10337.00 10586.00
10341.00 11142.00
11080.00 11459.00
11313.00 11786.00
'1995' 11649.00 12082.00
11580.00 12039.00
11593.00 12092.00
11815.00 12308.00
'1996' 12060.00 12610.00
12041.00 12596.00
12343.00 12942.00
12638.00 13288.00
'1997' 12882.00 13578.00
12989.00 13743.00
13124.00 13903.00
13475.00 14344.00
'1998' 13552.00 14434.00
Mar. 31|1999 13608.00 14557.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(2/4/93
through
3/31/99) 5.14% 4.58%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Texas
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The performance
of Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 1/12/93 2/4/93 2/4/93 6/22/93 6/22/93 11/3/94 11/3/94
- ---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 4.98% 4.77% 1.39% 4.15% 1.16% 4.14% 3.14%
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.80% 5.59% 4.45% 5.10% 4.80% 5.10% 5.10%
5 YEARS 5.98% 5.77% 5.08% 5.35% 5.35% --
SINCE INCEPTION 5.59% 5.14% 4.58% 4.57% 4.57% 6.40% 6.40%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
71
<PAGE> 76
Nations
Texas Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Texas Municipal Bond Fund's performance for the
12-month period ended March 31, 1999, and its outlook for
the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Texas municipal securities, we aim to
exempt from Federal income tax limit the Fund's exposure to any single credit or market
with the potential for principal sector. In addition, we use a combination of investment
fluctuation associated with strategies, including duration management (managing the
investments in long-term municipal Fund's sensitivity to interest rates), market sector
securities. The Fund invests in selection and individual credit reviews. We also seek to
investment grade, long-term limit the distribution of capital gains when appropriate. As
municipal securities. a long-term portfolio, the Fund maintains an average
PERFORMANCE REVIEW dollar-weighted maturity of greater than eight and one-half
For the 12-month period ended years and a duration between six and nine years.
March 31, 1999, Nations Texas HOW DID THE FUND PERFORM DURING THE PERIOD?**
Municipal Bond Fund Investor A With a total return of 5.20%, the Fund (Investor A Shares)
Shares provided shareholders with outperformed its peer group, the Lipper Texas Municipal Debt
a total return of 5.20%.* Funds Universe, which returned 4.75%, for the 12-month
period ended March 31, 1999. The Fund was able to take full
advantage of the decline in interest rates by having an
overweighting in noncallable and zero-coupon bonds. This
positioning enabled the Fund to outperform its peer group.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN TEXAS?
Despite budget deficits in the mid-1980's, Texas has
historically taken a conservative approach to financial
management. With low
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Texas Municipal Debt Funds Universe limit
their assets to those securities that are
exempt from taxation in Texas.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
72
<PAGE> 77
Nations
Texas Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
debt levels and a very strong and diverse economy, Texas has
been able to maintain its 'Aa2' rating from Moody's
Investors Service, Inc., 'AA' from Standard & Poor's
Corporation and 'AA+' from Fitch IBCA, Inc. As unemployment
in Texas has fallen below 5% for the first time in the
1990's, wage inflation remains in check as the state's
income levels still remain at 91% of the national average.
Texas's debt burden remains below the national average at
$300 per capita with the majority of outstanding debt
self-supporting.
WHAT IS YOUR OUTLOOK FOR TEXAS AND THE MUNICIPAL MARKET IN
THE COMING YEAR?
Last year, sales tax revenue accounted for 28% of total
revenue. This proportion should continue to increase
marginally as Texas continues to have one of the strongest
economies in the United States. Texas's lawsuit against the
tobacco companies, seeking compensation for the cost of
medical care incurred by the state for the treatment of
smoking related illnesses, could result in $14.5 billion in
revenue to the state over the next 25 years.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
73
<PAGE> 78
Nations
Texas Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
2.4% Cash
2.9% Water
3.0% Education
5.5% State General Obligation
7.0% Transportation
9.7% Hospital
17.4% Prerefunded
23.0% Industrial Development Revenue/ Pollution Control Revenue
29.1% General Obligation
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Tarrant County, Texas, Health
Facilities Development Corporation,
Health Systems Revenue, (Harris
Methodist Health Systems Project)
Series 1994, (MBIA-IBC Insured),
6.00% 09/01/10 6.8%
-----------------------------------------------
2 Lucas County, Ohio, Hospital
Revenue, (Flower Hospital Project)
Series 1993, Prerefunded 12/01/04 @
101, 6.13% 12/01/13 6.7%
-----------------------------------------------
3 Trinity River Authority, Texas,
PCR, (Texas Instruments Inc.
Project) Series 1996, AMT, 6.20%
03/01/20 6.5%
-----------------------------------------------
4 Red River Authority of Texas, PCR,
(Hoechst Celanese Corporation
Project) Series 1992, AMT, 6.88%
04/01/17 6.4%
-----------------------------------------------
5 Goose Creek, Texas, Consolidated
Independent School District, GO
Refunding, Series 1998, (PSFG
Insured), 5.00% 02/15/10 6.2%
-----------------------------------------------
6 Waller, Texas, Consolidated
Independent School District, GO,
Series 1996, (PSFG Insured), 5.25%
02/15/21 6.0%
-----------------------------------------------
7 Pflugerville, Texas, Independent
School District, GO Refunding,
Series 1997, (PSFG Insured), 5.75%
08/15/10 5.3%
-----------------------------------------------
8 Santa Fe, Texas, Independent School
District, GO Refunding, Series
1997, (PSFG Insured), 4.45%
02/15/07 5.0%
-----------------------------------------------
9 Dallas-Fort Worth, Texas, Regional
Airport Revenue Refunding, Series
1994A, (MBIA Insured), 6.00%
11/01/09 4.9%
-----------------------------------------------
10 Sherman, Texas, Independent School
District, GO, Series 1995, (PSFG
Insured), Prerefunded 02/15/05 @
100, 6.50% 02/15/20 4.0%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
74
<PAGE> 79
Nations
Texas Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
TEXAS|MUNICIPAL|BOND LEHMAN|MUNICIPAL|BOND
FUND|$12,553 INDEX|$13,931
-------------------- ---------------------
<S> <C> <C>
'Dec. 17|1993' 9525.00 10000.00
'1993' 9551.00 10221.00
8857.00 9650.00
8907.00 9757.00
8895.00 9824.00
'1994' 8745.00 9683.00
9442.00 10368.00
9681.00 10618.00
9942.00 10923.00
'1995' 10458.00 11374.00
10268.00 11237.00
10371.00 11323.00
10572.00 11582.00
'1996' 10834.00 11877.00
10759.00 11849.00
11106.00 12258.00
11468.00 12627.00
'1997' 11789.00 12969.00
11931.00 13118.00
12077.00 13317.00
12442.00 13726.00
'1998' 12518.00 13808.00
'Mar. 31|1998' 12553.00 13931.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
TEXAS|MUNICIPAL|BOND LEHMAN |MUNICIPAL|BOND
FUND|$13,179 INDEX|$13,931
-------------------- ----------------------
<S> <C> <C>
'Dec. 17|1993' 10000.00 10000.00
'1993' 10027.00 10221.00
9299.00 9650.00
9351.00 9757.00
9339.00 9824.00
'1994' 9181.00 9683.00
9913.00 10368.00
10184.00 10618.00
10438.00 10923.00
'1995' 10980.00 11374.00
10780.00 11237.00
10888.00 11323.00
11099.00 11582.00
'1996' 11374.00 11877.00
11296.00 11849.00
11660.00 12258.00
12040.00 12627.00
'1997' 12377.00 12969.00
12526.00 13118.00
12679.00 13317.00
13062.00 13726.00
'1998' 13142.00 13808.00
'Mar. 31|1998' 13179.00 13931.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(12/17/93
through
3/31/99) 5.36% 4.40%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Texas
Municipal Bond Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 2/3/94 12/17/93 12/17/93 10/21/93 10/21/93 11/3/94 11/3/94
- -----------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.41% 5.20% 0.21% 4.53% 0.53% 4.51% 3.51%
- -----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 7.14% 6.93% 5.22% 6.28% 5.39% 6.40% 6.40%
5 YEARS 7.44% 7.22% 6.19% 6.60% 6.45% -- --
SINCE INCEPTION 5.40% 5.36% 4.40% 4.58% 4.58% 8.67% 8.67%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
75
<PAGE> 80
Nations Virginia
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Virginia Intermediate Municipal Bond Fund's
performance for the 12-month period ended March 31, 1999,
and its outlook for the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Virginia municipal securities, we aim
exempt from Federal and Virginia to limit the Fund's exposure to any single credit or market
state income taxes consistent with sector. In addition, we use a combination of investment
moderate fluctuation of principal. strategies, including duration management (managing the
The Fund invests in investment Fund's sensitivity to interest rates), market sector
grade, intermediate-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW an intermediate-term portfolio, the Fund maintains an
For the 12-month period ended average dollar-weighted maturity of between three and ten
March 31, 1999, Nations Virginia years and a duration between three and six years.
Intermediate Municipal Bond Fund HOW DID THE FUND PERFORM DURING THE PERIOD?**
Investor A Shares provided With a total return of 5.00%, the Fund (Investor A Shares)
shareholders with a total return outperformed its peer group, the Lipper Virginia
of 5.00%.* Intermediate Municipal Debt Funds Universe, which returned
4.80%, for the 12-month period ended March 31, 1999. The
Fund benefited from an overweighting in higher yield revenue
bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN VIRGINIA?
The Commonwealth of Virginia has earned the highest possible
credit rating from Moody's Investors Service, Inc. ('Aaa'),
Standard & Poor's Corporation ('AAA') and Fitch IBCA, Inc.
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt
issues with dollar-weighted average maturities of
five to ten years and are exempt from
taxation on a specified city or state basis.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
76
<PAGE> 81
Nations Virginia
Intermediate Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
('AAA') by having a conservative fiscal plan, above-average
per capita income and strong growth in service sector jobs.
Virginia's level of general obligation debt has grown as the
state has increased its commitment to investment in highways
and universities. Virginia's debt per capita, presently at
$556, is just slightly ahead of the national average of
$505. Personal income levels have declined slightly, but are
still 103% of the national average. The services sector now
accounts for over 29% of non-farm employment, filling the
void left by a decrease in federal employment. A large
percentage of government jobs results in the state deriving
22% of its earnings from the government.
WHAT IS YOUR OUTLOOK FOR VIRGINIA AND THE MUNICIPAL MARKET
IN THE COMING YEAR?
In Virginia, a major challenge for the future will be
contending with the loss of revenue attributed to the
Governor's planned elimination of the tax on automobiles
within the state. The phase in period for the elimination is
five years. Full funding will be reached in 2002, with the
cost estimated to be $1 billion.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
77
<PAGE> 82
Nations Virginia
Intermediate Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
3.0% Housing
3.6% Education
4.7% Resource Recovery
5.1% Industrial Development Revenue/Pollution Control Revenue
9.0% Hospital
10.4% Transportation
12.4% Water
12.9% Prerefunded
26.3% General Obligation
12.6% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Chesapeake, Virginia, GO Refunding,
Series 1993, 5.13% 12/01/05 2.2%
-----------------------------------------------
2 Loudoun County, Virginia,
Industrial Development Authority,
Revenue, (Air Force Retired
Officers - Falcons Landing Project)
Series 1994A, Prerefunded 11/01/04
@ 103, 8.75% 11/01/24 2.1%
-----------------------------------------------
3 Virginia State, Transportation
Board Authority, Transportation
Revenue Refunding, (U.S. Route 58
Corridor Program) Series 1993A,
5.50% 05/15/09 2.0%
-----------------------------------------------
4 Newport News, Virginia, Public
Improvement GO Refunding, Series
1993B, (State Aid Withholding),
5.20% 11/01/04 1.8%
-----------------------------------------------
5 Virginia State, Public Building
Authority, Public Revenue
Refunding, Series 1998A, 5.00%
08/01/07 1.8%
-----------------------------------------------
6 Virginia, Southeastern Public
Service Authority, Revenue
Refunding, Series 1993A, (MBIA
Insured), 5.10% 07/01/08 1.8%
-----------------------------------------------
7 Hanover County, Virginia,
Industrial Development Authority,
Revenue, (Memorial Regional Medical
Center Project) Series 1995, (MBIA
Insured), 5.50% 08/15/25 1.7%
-----------------------------------------------
8 Goochland County, Virginia,
Industrial Development Authority,
(Old Dominion Electric Cooperative
Project) Series 1998, AMT, 4.25%
12/01/02 1.7%
-----------------------------------------------
9 Virginia State, Transportation
Board Authority, Transportation
Contract Revenue, (Northern
Virginia Transportation District
Project) Series 1996A, 5.13%
05/15/21 1.5%
-----------------------------------------------
10 Virginia Commonwealth,
Transportation Board Transportation
Revenue Refunding, (U.S. Route 58
Corridor Program) Series 1997C,
5.13% 05/15/19 1.4%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
78
<PAGE> 83
Nations
Virginia Intermediate Municipal
Bond Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
VIRGINIA|INTERMEDIATE|MUNICIPAL|BOND|$16,982 INDEX|$19,137
-------------------------------------------- ----------------------------
<S> <C> <C>
Dec. 5|1989 9675.00 10000.00
'1989' 9702.00 10000.00
9819.00 10044.00
9984.00 10274.00
10066.00 10345.00
'1990' 10435.00 10741.00
10642.00 10997.00
10795.00 11186.00
11093.00 11611.00
'1991' 11443.00 11994.00
11430.00 11985.00
11792.00 12409.00
12050.00 12749.00
'1992' 12228.00 12958.00
12572.00 13373.00
12948.00 13743.00
13312.00 14141.00
'1993' 13441.00 14313.00
12890.00 13773.00
12976.00 13918.00
12999.00 14051.00
'1994' 12841.00 13916.00
13507.00 14648.00
13861.00 15064.00
14155.00 15494.00
'1995' 14531.00 15884.00
14452.00 15827.00
14509.00 15897.00
14733.00 16181.00
'1996' 15057.00 16578.00
14988.00 16559.00
15389.00 17015.00
15725.00 17469.00
'1997' 16053.00 17850.00
16172.00 18068.00
16368.00 18277.00
16805.00 18857.00
'1998' 16896.00 18975.00
Mar. 31|1999 16982.00 19137.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|7-YEAR|MUNICIPAL|BOND
VIRGINIA|INTERMEDIATE|MUNICIPAL|BOND|$17,552 INDEX|$19,137
-------------------------------------------- ----------------------------
<S> <C> <C>
Dec.5|1989 10000.00 10000.00
'1989' 10028.00 10000.00
10148.00 10044.00
10320.00 10274.00
10404.00 10345.00
'1990' 10785.00 10741.00
11000.00 10997.00
11157.00 11186.00
11465.00 11611.00
'1991' 11827.00 11994.00
11814.00 11985.00
12188.00 12409.00
12455.00 12749.00
'1992' 12629.00 12958.00
12994.00 13373.00
13383.00 13743.00
13759.00 14141.00
'1993' 13892.00 14313.00
13323.00 13773.00
13412.00 13918.00
13436.00 14051.00
'1994' 13272.00 13916.00
13961.00 14648.00
14327.00 15064.00
14630.00 15494.00
'1995' 15020.00 15884.00
14937.00 15827.00
14997.00 15897.00
15228.00 16181.00
'1996' 15583.00 16578.00
15491.00 16559.00
15906.00 17015.00
16253.00 17469.00
'1997' 16593.00 17850.00
16715.00 18068.00
16918.00 18277.00
17369.00 18857.00
'1998' 17463.00 18975.00
Mar. 31|1999 17552.00 19137.00
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(12/5/89
through
3/31/99) 6.22% 5.85%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Virginia
Intermediate Municipal Bond
Fund from the inception of
the shareclass. The Lehman
7-Year Municipal Bond Index
is a broad-based, unmanaged,
total return index composed
of investment-grade bonds
with maturities of 7 to 8
years. It is unavailable for
investment. The Lehman
7-Year Municipal Bond Index
measures the performance of
the municipal bonds
comprising the index for the
period beginning on
12/31/89. Please note,
however, that Investor A
Shares commenced operations
on 12/5/89. Therefore, the
performance illustrated by
the Lehman 7-Year Municipal
Bond Index includes the
performance of the Lehman
10-Year Municipal Bond Index
for the period preceding
12/31/89. The performance of
Primary A, Investor B and
Investor C Shares may vary
based on the differences in
sales loads and fees paid by
the shareholders investing
in each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 9/20/89 12/5/89 12/5/89 6/7/93 6/7/93 6/17/92 6/17/92
- ------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.21% 5.00% 1.56% 4.38% 1.38% 4.36% 3.36%
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.74% 5.53% 4.37% 5.04% 4.73% 5.03% 5.03%
5 YEARS 5.88% 5.67% 4.98% 5.25% 5.25% 5.25% 5.25%
SINCE INCEPTION 6.38% 6.22% 5.85% 4.62% 4.62% 5.13% 5.13%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the administrator, which have the effect of increasing total return.
79
<PAGE> 84
Nations
Virginia Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary
<TABLE>
<S> <C>
In the following interview, the team shares its views on
Nations Virginia Municipal Bond Fund's performance for the
12-month period ended March 31, 1999, and its outlook for
the future.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of TradeStreet Investment investment-grade issues through which it seeks to reduce
Associates, Inc., investment credit and liquidity risk, and lower quality,
sub-adviser to the Fund. investment-grade issues, for their additional yield
INVESTMENT OBJECTIVE potential. By maintaining a well-diversified portfolio
The Fund seeks high current income within the universe of Virginia municipal securities, we aim
exempt from Federal and Virginia to limit the Fund's exposure to any single credit or market
state income taxes with the sector. In addition, we use a combination of investment
potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. The Fund invests in limit the distribution of capital gains when appropriate. As
investment grade, long-term a long-term portfolio, the Fund maintains an average
municipal securities. dollar-weighted maturity of greater than eight and one-half
PERFORMANCE REVIEW years and a duration between six and nine years.
For the 12-month period ended HOW DID THE FUND PERFORM DURING THE PERIOD?**
March 31, 1999, Nations Virginia With a total return of 4.98%, the Fund (Investor A Shares)
Municipal Bond Fund Investor A slightly outperformed its peer group, the Lipper Virginia
Shares provided shareholders with Municipal Debt Funds Universe, which returned 4.95%, for the
a total return of 4.98%.* 12-month period ended March 31, 1999. The Fund benefited
from an overweighting in higher yield revenue bonds.
WHAT WERE ECONOMIC AND MARKET CONDITIONS LIKE IN VIRGINIA?
The Commonwealth of Virginia has earned the highest possible
credit rating from Moody's Investors Service, Inc. ('Aaa'),
Standard & Poor's Corporation ('AAA') and Fitch IBCA, Inc.
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the
administrator, which have the effect of increasing
total return. It does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For
standardized performance, please refer to the "Fund
Performance" table.
**Lipper Inc., an independent mutual fund performance
monitor. Funds included in the
Lipper Virginia Municipal Debt Funds Universe limit
their assets to those securities that are
exempt from taxation in Virginia.
Source for all statistical data -- TradeStreet
Investment Associates, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
80
<PAGE> 85
Nations
Virginia Municipal Bond
Fund Municipal Fixed Income Management
Team Commentary continued...
<TABLE>
<S> <C>
('AAA') by having a conservative fiscal plan, above-average
per capita income and strong growth in service sector jobs.
Virginia's level of general obligation debt has grown as the
state has increased its commitment to investment in highways
and universities. Virginia's debt per capita, presently at
$556, is just slightly ahead of the national average of
$505. Personal income levels have declined slightly, but are
still 103% of the national average. The services sector now
accounts for over 29% of non-farm employment, filling the
void left by a decrease in federal employment. A large
percentage of government jobs results in the state deriving
22% of its earnings from the government.
WHAT IS YOUR OUTLOOK FOR VIRGINIA AND THE MUNICIPAL MARKET
IN THE COMING YEAR?
In Virginia, a major challenge for the future will be
contending with the loss of revenue attributed to the
Governor's planned elimination of the tax on automobiles
within the state. The phase in period for the elimination is
five years. Full funding will be reached in 2002, with the
cost estimated to be $1 billion.
We believe the prospects for the municipal bond market in
the coming year are generally positive. New issue supply
should be lighter than last year, strong domestic
fundamentals should support state and local government
finances, and demand for tax-exempt income appears to be
firm. We continue to have concerns about the electric
utility industry as deregulation moves forward and segments
of the health-care industry as recent changes in federal
reimbursement policy are embraced. The Y2K bug may also have
a temporary negative impact on valuations, as smaller
issuers with less financial resources deal with heightened
technological needs. Longer term, these investments in
technology should be positive. While a changing political
environment is not a new phenomenon for this market, it
always seems to produce levels of investor anxiety that can
provide great opportunities.
</TABLE>
81
<PAGE> 86
Nations
Virginia Municipal Bond
Fund
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/99)
[PIE CHART]
<TABLE>
<S> <C>
3.3% Cash
3.8% Housing
4.1% Education
6.2% Lease
9.2% Transportation
10.4% Industrial Development Revenue/Pollution Control Revenue
12.7% General Obligation
18.3% Hospital
25.3% Water
6.7% Other
</TABLE>
<TABLE>
<C> <S> <C>
TOP TEN HOLDINGS
-----------------------------------------------
1 Rivanna, Virginia, Water and Sewer
Authority, Regional Water and Sewer
Systems, Revenue Refunding, Series
1991, 6.45% 10/01/12 5.5%
-----------------------------------------------
2 Staunton, Virginia, Industrial
Development Authority, Educational
Facilities Revenue, (Mary Baldwin
College Project) Series 1996, 6.60%
11/01/14 3.9%
-----------------------------------------------
3 Fairfax County, Virginia, Water and
Sewer Revenue Refunding, Series
1993, (AMBAC Insured), 5.50%
11/15/13 3.9%
-----------------------------------------------
4 Prince William County, Virginia,
Industrial Development Authority,
Lease Revenue, (ATCC Project)
Series 1996, 6.00% 02/01/14 3.8%
-----------------------------------------------
5 Augusta County, Virginia,
Industrial Development Authority,
Hospital Revenue Refunding,
(Augusta Hospital Corporation
Project) Series 1993, (AMBAC
Insured), 5.50% 09/01/15 3.8%
-----------------------------------------------
6 Danville, Virginia, Industrial
Development Authority, Hospital
Revenue, (Danville Regional Medical
Center Project) Series 1998, (AMBAC
Insured), 5.25% 10/01/28 3.7%
-----------------------------------------------
7 Virginia Commonwealth,
Transportation Board,
Transportation Program Revenue,
(Oak Grove Connector Project )
Series 1997A, 5.25% 05/15/22 3.7%
-----------------------------------------------
8 Arlington County, Virginia,
Industrial Development Authority,
Facilities Revenue Refunding, (Lee
Gardens Housing Corporation-Housing
Mortgage - Woodbury Park Apartments
Project) Series 1998A, 5.45%
01/01/29 3.6%
-----------------------------------------------
9 Roanoke County, Virginia, Water
Systems Revenue Refunding, Series
1993, (FGIC Insured), 5.00%
07/01/21 3.6%
-----------------------------------------------
10 Richmond, Virginia, Metropolitan
Expressway Authority, Revenue
Refunding, Series 1992B, (FGIC
Insured), 6.25% 07/15/22 3.2%
-----------------------------------------------
THE TOP TEN HOLDINGS ARE PRESENTED TO
ILLUSTRATE EXAMPLES OF THE INDUSTRIES AND
SECURITIES IN WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 1999, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
82
<PAGE> 87
Nations
Virginia Municipal Bond
Fund Performance
GROWTH OF $10,000 INVESTMENT
[INVESTOR A SHARES AT MOP* RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
VIRGINIA|MUNICIPAL|BOND|$12,619 INDEX|$13,809
------------------------------- ---------------------
<S> <C> <C>
Nov. 8|1993 9525.00 10000.00
'1993' 9722.00 10121.00
8902.00 9565.00
8921.00 9671.00
8930.00 9737.00
'1994' 8795.00 9598.00
9511.00 10277.00
9733.00 10524.00
10012.00 10826.00
'1995' 10516.00 11273.00
10303.00 11138.00
10375.00 11223.00
10638.00 11480.00
'1996' 10883.00 11773.00
10842.00 11744.00
11207.00 12150.00
11527.00 12515.00
'1997' 11889.00 12854.00
12022.00 13002.00
12194.00 13200.00
12564.00 13605.00
'1998' 12567.00 13687.00
Mar. 31|1999 12619.00 13809.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
LEHMAN|MUNICIPAL|BOND
VIRGINIA|MUNICIPAL|BOND|$13,248 INDEX|$13,809
------------------------------- ---------------------
<S> <C> <C>
Nov. 8|1993 10000 10000
'1993' 10207 10121
9346 9565
9366 9671
9375 9737
'1994' 9284 9598
9986 10277
10218 10524
10511 10826
'1995' 11040 11273
10817 11138
10893 11223
11168 11480
'1996' 11425 11773
11383 11744
11766 12150
12102 12515
'1997' 12482 12854
12622 13002
12602 13200
13190 13605
'1998' 13194 13687
Mar. 31|1999 13248 13809
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
Since
Inception NAV** MOP*
<S> <C> <C>
(11/8/93
through
3/31/99) 5.36% 4.41%
</TABLE>
The charts to the left show
the growth in value of a
hypothetical $10,000
investment in Investor A
Shares of Nations Virginia
Municipal Bond Fund from the
inception of the shareclass.
The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return
index composed of 8,000
investment-grade, long-term
maturity bonds. It is
unavailable for investment.
The performance of Primary
A, Investor B and Investor C
Shares may vary based on the
differences in sales loads
and fees paid by the
shareholders investing in
each class.
[CHART LEGEND]
TOTAL RETURN (AS OF 3/31/99)
<TABLE>
<CAPTION>
Investor A Investor B Investor C
Primary A NAV MOP NAV CDSC*** NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception Date 1/11/94 11/8/93 11/8/93 10/21/93 10/21/93 11/3/94 11/3/94
- -------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 5.18% 4.98% -0.05% 4.30% 0.30% 4.21% 3.21%
- -------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 7.21% 6.99% 5.26% 6.35% 5.46% 6.44% 6.44%
5 YEARS 7.45% 7.23% 6.19% 6.61% 6.45% -- --
SINCE INCEPTION 5.25% 5.36% 4.41% 4.41% 4.41% 8.68% 8.68%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of dividends.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers and expense
reimbursements by the investment adviser and the administrator, which have the
effect of increasing total return.
83
<PAGE> 88
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.1%
ALABAMA -- 0.9%
$1,175 Alabama, Special Care
Facilities Financing
Authority, Hospital Revenue,
(Charity Obligation Group
Project) Series A,
3.750% 11/01/01............. Aa2/AA+ $ 1,173
--------
ALASKA -- 3.5%
1,490 Alaska, Industrial
Development and Export
Authority, Revenue
Refunding, Series 1998A,
AMT, (MBIA Insured),
5.000% 04/01/04............. Aaa/AAA 1,541
1,000 Alaska, Student Loan
Corporation, Student Loan
Revenue, Series 1995A, AMT,
(AMBAC Insured),
4.900% 07/01/00............. Aaa/AAA 1,016
2,000 North Slope Borough, Alaska,
GO, Series 1994B, (FSA
Insured),
6.100% 06/30/99............. Aaa/AAA 2,015
--------
4,572
--------
ARIZONA -- 4.3%
2,125 Maricopa County, Arizona,
School District Number 006,
GO, (Projects of 1996)
Series 1997B, (FGIC
Insured),
5.000% 07/01/00............. Aaa/AAA 2,169
3,500 Phoenix, Arizona, Industrial
Development Authority,
Single-Family Mortgage
Revenue, Series 1998D,
4.200% 06/01/02............. NR/SP1+ 3,500
--------
5,669
--------
DISTRICT OF COLUMBIA -- 2.1%
1,750 District of Columbia, GO
Refunding, Series 1993C,
(FSA Insured),
5.100% 12/01/99............. Aaa/AAA 1,771
1,000 Metropolitan Washington,
District of Columbia,
Airport Authority of
Virginia, General Airport
Revenue Refunding, Series
1998B, AMT,
5.000% 10/01/03............. Aa3/AA- 1,042
--------
2,813
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- 0.8%
$1,000 Clarke County, Georgia,
School District, Sales Tax
GO Refunding, Series 1997,
(FSA Insured),
5.125% 09/01/00............. Aaa/AAA $ 1,025
--------
GUAM -- 1.9%
500 Guam, Airport Authority,
Revenue, Series 1993A,
5.400% 10/01/99............. NR/BBB 505
2,000 Guam, Government GO, Series
1995A,
5.375% 09/01/00............. NR/BBB 2,014
--------
2,519
--------
ILLINOIS -- 2.4%
1,000 Chicago, Illinois, O'Hare
International Airport,
General Airport Revenue,
Second Lien, Series 1996A,
AMT, (AMBAC Insured),
5.000% 01/01/02............. Aaa/AAA 1,028
2,000 Illinois, Health Facilities
Authority, Revenue, (Ingalls
Memorial Hospital Project)
Series 1989, (MBIA Insured),
Prerefunded 01/01/00 @ 102,
7.000% 01/01/19............. Aaa/AAA 2,096
--------
3,124
--------
INDIANA -- 2.5%
1,280 Indiana, Health Facilities
Financing Authority,
Hospital Revenue Refunding,
(Methodist Hospital of
Indiana, Inc. Project)
Series 1992,
6.000% 09/15/99............. A/NR 1,296
2,000 Indiana, Secondary Market for
Education Loan Revenue,
Series 1998F, AMT, (AMBAC
Insured),
4.450% 12/01/05............. Aaa/NR 2,007
--------
3,303
--------
IOWA -- 2.4%
3,000 Iowa, Student Loan Liquidity
Corporation, Student Loan
Revenue, (Iowa College
Student Aid Project) Series
1997B, AMT,
4.900% 12/01/05............. Aaa/NR 3,105
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 89
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
KENTUCKY -- 1.0%
$1,325 Kentucky, Asset/Liability
Commission, University and
College Improvements General
Fund Revenue, Series 1999-1,
3.500% 03/01/01............. A2/A+ $ 1,322
--------
MICHIGAN -- 4.1%
2,000 Detroit, Michigan, Convention
Facilities Revenue
Refunding, (Cobo Hall
Expansion Project) Series
1993, 4.750% 09/30/00....... NR/A 2,030
1,000 Detroit, Michigan, GO
Refunding, Series 1995B,
5.100% 04/01/99............. Baa1/BBB+ 1,000
1,000 Detroit, Michigan, GO, Series
1995A,
5.600% 05/01/01............. NR/BBB+ 1,033
1,210 Wayne Charter County,
Michigan, Airport Revenue,
(Detroit Metropolitan-Wayne
County Project) Series
1998A, AMT, (MBIA Insured),
5.250% 12/01/04............. Aaa/AAA 1,280
--------
5,343
--------
MISSISSIPPI -- 6.1%
3,000 Grenada County, Mississippi,
Revenue Refunding,
(Georgia-Pacific Corporation
Project) Series 1998,
4.300% 09/01/00............. Baa2/NR 3,016
5,000 Lawrence County, Mississippi,
PCR, (Georgia-Pacific
Corporation Project) Series
1998,
4.300% 12/01/00............. Baa2/NR 5,041
--------
8,057
--------
MONTANA -- 1.5%
2,000 Forsyth, Montana, PCR
Refunding, (Portland General
Electric Company Project)
Series 1998A, Mandatory Put
05/01/03 @ 100,
4.600% 05/01/33............. A3/A- 2,026
--------
NEVADA -- 1.6%
1,000 Clark County, Nevada,
Sanitation District, GO,
Series 1992A, (AMBAC
Insured),
5.700% 07/01/99............. Aaa/AAA 1,006
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NEVADA -- (CONTINUED)
$1,000 Henderson, Nevada, Water GO,
Series 1993A, (AMBAC
Insured), Prerefunded
12/01/02 @ 101,
6.200% 12/01/09............. Aaa/AAA $ 1,093
--------
2,099
--------
NEW JERSEY -- 3.7%
4,140 New Jersey, Health Care
Facilities, Financing
Authority Revenue,
(Riverwood Center Inc.
Project) Series 1991A, (FSA
Insured), Prerefunded
07/01/01 @ 102,
9.900% 07/01/21............. Aaa/AAA 4,853
--------
NEW MEXICO -- 0.6%
790 New Mexico, Mortgage Finance
Authority, Single-Family
Mortgage Revenue Refunding,
Series 1992A-1,
5.900% 07/01/99............. Aa1/AA 793
--------
NEW YORK -- 8.4%
2,075 Chautauqua County, New York,
Certificates of
Participation, Series 1999A,
6.125% 02/01/01............. MIG1/NR 2,073
3,750 New York State, Dormitory
Authority, Revenue, (Service
Contract -- Community
Enhancement Project) Series
1999A,
4.125% 04/01/01............. NR/BBB+ 3,769
1,000 New York State, GO Refunding,
Series 1995B,
6.375% 08/15/00............. A2/A 1,041
4,000 New York State, Thruway
Authority, Service Contract
Revenue Refunding, (Local
Highway and Bridges Project)
Series 1997,
5.000% 04/01/01............. Baa1/BBB+ 4,097
--------
10,980
--------
NORTH CAROLINA -- 4.0%
1,630 North Carolina, Medical Care
Commission Revenue, Health
Care Facilities Revenue,
(Halifax Regional Medical
Center, Inc. Project) Series
1998,
4.400% 08/15/04............. Baa1/A 1,630
1,120 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Halifax
Regional Medical Center,
Inc. Project) Series 1998,
4.150% 08/15/01............. Baa1/A 1,123
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 90
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Halifax
Regional Medical Center,
Inc. Project) Series 1998,
4.300% 08/15/02............. Baa1/A $ 1,003
1,560 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Halifax
Regional Medical Center,
Inc. Project) Series 1998,
4.300% 08/15/03............. Baa1/A 1,560
--------
5,316
--------
OHIO -- 1.4%
1,740 Ohio, Housing Finance Agency,
Mortgage Revenue,
(Residential Project) Series
1998B-2, AMT, (GNMA COLL)
4.800% 09/01/07............. NR/AAA 1,774
--------
OKLAHOMA -- 1.9%
1,000 Oklahoma State, Capital
Improvement Authority,
Highway Capital Improvement
Revenue, Series 1998, (MBIA
Insured),
3.900% 12/01/00............. Aaa/AAA 1,010
1,500 Oklahoma, Development Finance
Authority, Revenue
Refunding, (Hillcrest
Healthcare Center Inc.
Project) Series 1999A,
4.700% 08/15/05............. Baa2/BBB+ 1,497
--------
2,507
--------
PENNSYLVANIA -- 9.8%
5,425 Dauphin County, Pennsylvania,
General Authority, Revenue,
(School District Pooled
Financing Program II) Series
1997, (AMBAC Insured),
Mandatory Put 09/01/01 @
100,
4.450% 09/01/32............. Aaa/NR 5,515
1,560 Greene County, Pennsylvania,
Industrial Development
Authority, Revenue,
(Monongahela Power Company
Project) Series 1998B,
4.350% 02/01/02............. A2/A 1,574
2,200 Greene County, Pennsylvania,
Industrial Development
Authority, Revenue, (Potomac
Edison Company Project)
Series 1998B,
4.350% 02/01/02............. A2/A 2,220
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
PENNSYLVANIA -- (CONTINUED)
$1,000 Monroeville, Pennsylvania,
Hospital Authority Revenue
Refunding, (Forbes Health
Systems -- Allegheny
University Medical Centers
Project) Series 1995,
5.125% 10/01/00............. Ba3/B $ 980
1,000 Monroeville, Pennsylvania,
Hospital Authority Revenue
Refunding, (Forbes Health
Systems -- Allegheny
University Medical Centers
Project) Series 1995,
5.000% 10/01/99............. Ba3/B 992
1,500 Philadelphia, Pennsylvania,
Water and Wastewater Systems
Revenue, Series 1993, (FGIC
Insured),
5.500% 06/15/03............. Aaa/AAA 1,593
--------
12,874
--------
SOUTH CAROLINA -- 0.8%
1,000 Medical University of South
Carolina, Hospital
Facilities Revenue
Refunding, Series 1990A,
7.000% 07/01/00............. A3/A+ 1,043
--------
TENNESSEE -- 3.5%
2,100 McMinn County, Tennessee,
Industrial Development
Board, PCR Refunding,
(Bowater Inc. Project)
Series 1991,
6.850% 04/01/01............. Baa1/BBB 2,201
2,225 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding, (Federal
Express Corporation Project)
Series 1992, AMT,
6.750% 09/01/12............. Baa2/BBB 2,423
--------
4,624
--------
TEXAS -- 14.5%
1,000 Addison, Texas, GO Refunding,
Series 1991, (FGIC Insured),
6.100% 09/01/99............. Aaa/AAA 1,002
1,010 Addison, Texas, GO, Series
1997, (FSA Insured),
6.250% 02/15/01............. Aaa/AAA 1,059
950 Brazos, Texas, Higher
Education Authority Inc.,
Revenue Refunding, Senior
Lien, Series 1994A-2, AMT,
(GTD STD LNS),
5.850% 06/01/01............. Aaa/NR 985
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 91
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
TEXAS -- (CONTINUED)
$1,415 Brazos, Texas, Higher
Education Authority Inc.,
Revenue Refunding, Series
1992C-1, AMT, (GTD STD LNS),
6.000% 11/01/99............. Aa/NR $ 1,436
1,000 Dallas-Fort Worth, Texas,
Regional Airport Revenue
Refunding, Series 1992B,
6.000% 11/01/02............. A1/A+ 1,072
1,000 Gulf Coast, Texas, Industrial
Development Authority,
Revenue Refunding, (Champion
International Corporation
Project) Series 1988,
7.000% 04/01/04............. Baa1/BBB 1,016
1,650 Harris County, Texas, GO
Refunding, Series 1993,
5.600% 10/01/01............. Aa2/AA 1,730
2,450 Houston, Texas, Water and
Sewer Systems Revenue
Refunding, Prior Lien,
Series 1992B,
5.250% 12/01/99............. A3/A 2,482
3,000 Panhandle-Plains, Texas,
Higher Education Authority,
Revenue Refunding, Series
1993E, AMT, (GTD STD LNS),
5.550% 03/01/05............. A/NR 3,152
1,880 Texas A & M University,
Financing Systems Revenue,
Series 1996,
5.000% 05/15/02............. Aa2/AA+ 1,950
1,000 Texas State, College Student
Loan Authority, Revenue,
Series 1995, AMT,
5.100% 08/01/01............. Aa2/AA 1,031
2,000 University of Texas,
Permanent University Fund,
Revenue Refunding, Series
1991, Prerefunded 07/01/01 @
102,
6.500% 07/01/11............. Aaa/AAA 2,163
--------
19,078
--------
VIRGINIA -- 4.8%
1,000 Ashland, Virginia, Industrial
Development Authority,
Educational Facilities
Revenue, (Randolph-Macon
College Project) Series
1996, Mandatory Put 11/01/99
@ 100,
4.375% 11/01/11............. NR/A 1,006
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$2,350 Greensville County, Virginia,
Industrial Development
Authority, Revenue
Refunding, (Georgia-Pacific
Corporation Project) Series
1998,
4.100% 08/01/00............. Baa2/NR $ 2,361
1,000 Virginia Beach, Virginia, GO,
Series 1990A,
6.800% 06/01/99............. Aa2/AA 1,006
1,825 Virginia, Education Loan
Authority, Guaranteed
Student Loan Revenue, Series
1992G, AMT, (GTD STD LNS),
6.625% 09/01/03............. Aaa/NR 1,953
--------
6,326
--------
WASHINGTON -- 6.0%
1,000 Washington State, GO, Series
1990B, Prerefunded 08/01/00
@ 100,
6.600% 08/01/01............. Aa1/AA+ 1,042
1,000 Washington State, Public
Power Supply Revenue
Refunding, Series 1990C,
7.300% 07/01/00............. Aa1/AA- 1,046
1,675 Washington State, Public
Power Supply Revenue
Refunding, Series 1990C,
(MBIA-IBC Insured),
7.200% 07/01/99............. Aaa/AAA 1,691
4,000 Washington State, Public
Power Supply Revenue
Refunding, Series 1997A,
5.000% 07/01/00............. Aa1/AA- 4,077
--------
7,856
--------
WISCONSIN -- 1.6%
2,000 Wisconsin State, GO, Series
1992A,
5.750% 05/01/00............. Aa2/AA 2,054
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $124,888).......................... 126,228
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 92
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.6%
(Cost $2,067)
2,067 AIM Tax-Exempt Fund........................ $ 2,067
--------
TOTAL INVESTMENTS
(Cost $126,955*)................... 97.7% 128,295
--------
OTHER ASSETS AND
LIABILITIES (NET).................. 2.3%
Cash....................................... $ 1,503
Receivable for investment securities
sold...................................... 3,242
Receivable for Fund shares sold............ 200
Interest receivable........................ 1,778
Receivable from investment advisor......... 34
Prepaid expenses........................... 2
Payable for Fund shares redeemed........... (383)
Administration fee payable................. (16)
Shareholder servicing and distribution fees
payable................................... (16)
Distributions payable...................... (446)
Payable for investment securities
purchased................................. (2,812)
Accrued Trustees' fees and expenses........ (12)
Accrued expenses and other liabilities..... (48)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)......................... 3,026
--------
NET ASSETS.......................... 100.0% $131,321
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 39
Accumulated net realized loss on
investments sold.......................... (143)
Net unrealized appreciation of
investments............................... 1,340
Paid-in capital............................ 130,085
--------
NET ASSETS................................. $131,321
========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
- -------------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($79,001,920/7,821,742
shares outstanding)....................... $10.10
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($35,804,650/3,544,762 shares
outstanding).............................. $10.10
------
------
Maximum sales charge....................... 1.00%
Maximum offering price per share........... $10.20
INVESTOR B SHARES:
Net asset value and offering price per
share** ($13,931,564/1,379,375 shares
outstanding).............................. $10.10
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,582,799/255,720 shares
outstanding).............................. $10.10
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $1,370 and gross
depreciation of $30 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $126,955.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations Short-Term Municipal Income Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 17.05%
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 93
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.9%
ALABAMA -- 2.0%
$ 3,265 Alabama, Special Care
Facilities Financing
Authority, Hospital Revenue,
(Charity Obligation Group
Project) Series A, (MBIA
Insured),
4.625% 11/01/10............. Aa2/AA+ $ 3,223
2,500 Birmingham, Alabama,
Industrial Water Board,
Industrial Water Supply
Revenue, Series 1978,
6.000% 07/01/07............. NR/AAA 2,813
2,500 Birmingham, Alabama, Revenue,
(Baptist Medical Center of
Birmingham Project) Series
1993A, (MBIA Insured),
5.500% 08/15/05............. Aaa/AAA 2,596
5,750 Courtland, Alabama,
Industrial Development
Board, Solid Waste Disposal
Revenue, (Champion
International Corporation
Project) Series 1993A, AMT,
6.375% 03/01/29............. Baa1/BBB 6,067
3,600 Jefferson County, Alabama,
Sewer Revenue Refunding,
Series 1997A, (FGIC
Insured),
5.625% 02/01/18............. Aaa/AAA 3,797
--------
18,496
--------
ALASKA -- 1.9%
3,000 Alaska State, Housing Finance
Corporation, Revenue, Series
1995A, (MBIA Insured),
5.400% 06/01/08............. Aaa/AAA 3,156
3,345 Alaska, Industrial
Development and Export
Authority, Revenue
Refunding, Series 1998A,
AMT, (MBIA Insured),
5.250% 04/01/12............. Aaa/AAA 3,444
2,590 Alaska, Industrial
Development and Export
Authority, Revenue
Refunding, Series 1998A,
AMT, (MBIA Insured),
5.250% 04/01/07............. Aaa/AAA 2,714
3,280 Alaska, Student Loan
Corporation, Student Loan
Revenue, Series 1995A, AMT,
(AMBAC Insured),
5.250% 07/01/03............. Aaa/AAA 3,423
1,500 Alaska, Student Loan
Corporation, Student Loan
Revenue, Series 1997A, AMT,
(AMBAC Insured),
5.150% 07/01/05............. Aaa/AAA 1,566
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
ALASKA -- (CONTINUED)
$ 1,250 Alaska, Student Loan
Corporation, Student Loan
Revenue, Series 1997A, AMT,
(AMBAC Insured),
5.200% 07/01/06............. Aaa/AAA $ 1,306
2,000 Anchorage, Alaska, GO, Series
1996A, (AMBAC Insured),
5.100% 08/01/07............. Aaa/AAA 2,101
--------
17,710
--------
ARIZONA -- 1.7%
955 Arizona State, University
Revenue Refunding, Series
1992A,
6.500% 07/01/01............. A1/AA 1,015
2,250 Arizona State, University
Revenue Refunding, Series
1993,
6.000% 07/01/07............. A1/AA 2,520
1,100 Glendale, Arizona, GO
Refunding, Series 1993,
(FGIC Insured),
4.950% 07/01/01............. Aaa/AAA 1,133
7,000 Maricopa County, Arizona,
School District Number 4,
GO, Series 1991D,
(AMBAC-TCRS Insured),
6.900% 07/01/00............. Aaa/AAA 7,301
300 Maricopa County, Arizona,
Unified High School District
Number 210, GO, Series
1991D, Prerefunded 07/01/01
@ 101,
6.700% 07/01/03............. Aa3/AA 323
400 Pima County, Arizona, Unified
School District Number 1, GO
Refunding, Series 1991,
(MBIA Insured), Prerefunded
07/01/01 @ 101,
6.700% 07/01/04............. Aaa/AAA 430
2,125 Pima County, Arizona, Unified
School District, GO, Series
1995G, (MBIA Insured),
7.300% 07/01/05............. Aaa/AAA 2,497
400 Tempe, Arizona, GO, Series
1992,
5.600% 07/01/00............. Aa1/AA+ 406
--------
15,625
--------
ARKANSAS -- 0.8%
7,000 Hot Springs, Arkansas, IDR
Refunding, (Willamette
Industries Project) Series
1991,
6.650% 12/01/02............. NR/A- 7,546
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 94
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
COLORADO -- 1.5%
$ 1,500 Arapahoe County, Colorado,
School District Number, GO,
Series 1990, Prerefunded
12/15/00 @ 101,
7.000% 12/15/04............. Aa2/AA $ 1,605
3,445 Denver, Colorado, City and
County GO, Series 1992A,
Prerefunded 08/01/00 @ 101,
5.700% 08/01/01............. Aa2/AAA 3,586
7,000 Denver, Colorado, City and
County GO, Series 1992C,
Prerefunded 08/01/00 @ 101,
5.750% 08/01/06............. Aa2/AAA 7,292
1,500 Northglenn, Colorado, Water
and Sewer GO Refunding,
Series 1996, (FSA Insured),
5.250% 12/01/04............. Aaa/AAA 1,600
--------
14,083
--------
CONNECTICUT -- 2.6%
300 Connecticut State, GO, Series
1991A, Prerefunded 03/01/01
@ 102,
6.600% 03/01/04............. Aaa/AAA 323
1,000 Connecticut State, GO, Series
1993B,
4.800% 03/15/01............. Aa3/AA 1,025
2,500 Connecticut State, GO, Series
1997C,
5.500% 08/01/07............. Aa3/AA 2,736
6,625 Connecticut State, GO, Series
1997D,
5.500% 12/01/07............. Aa3/AA 7,270
6,465 Connecticut State, Housing
Finance Authority, Revenue,
(Housing Mortgage Finance
Program) Series 1997D-2,
AMT,
5.600% 11/15/21............. Aa2/AA 6,658
6,140 Connecticut State,
Transportation
Infrastructure Special Tax,
GO Refunding, Series 1993A,
(FGIC-TCRS Insured),
5.100% 09/01/04............. Aaa/AAA 6,512
--------
24,524
--------
DISTRICT OF COLUMBIA -- 0.5%
1,000 District of Columbia,
Hospital Revenue Refunding,
(Medlantic Healthcare Group
Project) Series 1997A, (MBIA
Insured),
6.000% 08/15/06............. Aaa/AAA 1,112
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
DISTRICT OF COLUMBIA -- (CONTINUED)
$ 1,350 District of Columbia,
Hospital Revenue Refunding,
(Medlantic Healthcare Group
Project) Series 1997A, (MBIA
Insured),
6.000% 08/15/07............. Aaa/AAA $ 1,511
1,500 Metropolitan Washington,
District of Columbia,
Airport Revenue, Series
1994A, AMT, (MBIA Insured),
5.600% 10/01/06............. Aaa/AAA 1,621
--------
4,244
--------
FLORIDA -- 7.8%
5,895 Alachua County, Florida,
Public Improvement Revenue
Refunding, Series 1995, (FSA
Insured),
5.000% 08/01/14............. Aaa/AAA 5,991
1,000 Broward County, Florida,
School District, GO
Refunding, Series 1993,
5.100% 02/15/02............. A1/AA- 1,039
2,700 Duval County, Florida,
Housing Finance Authority,
Multi-Family Housing Revenue
Refunding, (United Dominion
Realty Trust - Greentree
Place Project) Series 1995,
Mandatory Put 04/01/09 @
100,
6.750% 04/01/25............. NR/BBB+ 2,925
4,720 Duval County, Florida,
Housing Finance Authority,
Multi-Family Mortgage
Revenue Refunding, (The Cove
Project) Series 1992,
6.100% 10/01/02............. NR/AAA 4,950
4,850 Escambia County, Florida,
Housing Finance Authority,
Single-Family Mortgage,
Revenue, Series 1999, AMT,
(FNMA GNMA),
4.500% 10/01/09............. Aaa/NR 4,838
3,035 Florida State, Board of
Education, Capital Outlay
GO, Series 1995A,
5.400% 01/01/06............. Aa2/AA+ 3,257
4,500 Florida State, Board of
Education, School
Improvement Capital Outlay
GO, Series 1995F, (FSA
Insured), Prerefunded
06/01/05 @ 101,
6.100% 06/01/24............. Aaa/AAA 5,055
3,650 Florida State, Division of
Bond Financing, Department
of General Services Revenue,
(Department of Natural
Resources - Preservation
2000 Project) Series 1991A,
(AMBAC Insured),
6.200% 07/01/00............. Aaa/AAA 3,779
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 95
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 7,440 Florida, Housing Finance
Agency, Multi-Family Housing
Revenue Refunding,
(Altamonte Project) Series
1994C, Mandatory Put
12/01/03 @ 100,
7.000% 12/01/24............. NR/BBB+ $ 8,157
2,000 Florida, Housing Finance
Agency, Multi-Family Housing
Revenue Refunding, (United
Dominion Realty
Trust - Andover Project)
Series 1996E, AMT, Mandatory
Put 05/01/08 @ 100,
6.350% 05/01/26............. NR/BBB+ 2,157
1,500 Jacksonville, Florida,
Electric Authority, Revenue
Refunding, (St. John River
Project) Issue 2, Series
1993-10,
4.600% 10/01/00............. Aa2/AA 1,528
5,900 Jacksonville, Florida,
Electric Authority, Revenue
Refunding, (St. John River
Project) Issue 2, Series
1993-10,
5.000% 10/01/04............. Aa2/AA 6,189
300 Jacksonville, Florida,
Electric Systems Authority,
Revenue Refunding, (St.
Johns River Project) Issue
2, Series 1995-6C,
6.400% 10/01/00............. Aa1/AA 313
2,080 Nassau County, Florida, PCR
Refunding, (ITT Rayonier,
Inc. Project) Series 1992,
5.700% 06/01/01............. Baa2/BBB+ 2,151
1,000 Orlando, Florida, Utilities
Commission, Water and
Electric Revenue Refunding,
Series 1992,
5.200% 10/01/00............. Aa1/AA 1,028
4,000 Orlando, Florida, Utilities
Commission, Water and
Electric Revenue Refunding,
Series 1992,
5.600% 10/01/03............. Aa1/AA 4,302
5,490 Pinellas County, Florida,
Resource Recovery Revenue
Refunding, Series 1990A,
(MBIA Insured),
6.600% 10/01/00............. Aaa/AAA 5,753
5,000 Tampa, Florida, Health
Systems Revenue, (Catholic
Health East Project) Series
1998A-1, (MBIA Insured),
5.500% 11/15/13............. Aaa/AAA 5,386
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$ 4,000 Tampa, Florida, Health
Systems Revenue, (Catholic
Health East Project) Series
1998A-1, (MBIA Insured),
5.500% 11/15/14............. Aaa/AAA $ 4,310
--------
73,108
--------
GEORGIA -- 2.2%
2,500 Burke County, Georgia,
Development Authority, PCR,
(Oglethorpe Power
Corporation Project) Series
1994B, (MBIA-IBC Insured),
4.900% 01/01/06............. Aaa/AAA 2,602
3,000 Cartersville, Georgia,
Development Authority, Sewer
Facilities Revenue
Refunding, (Anheuser-Busch
Companies, Inc. Project)
Series 1997, AMT,
5.625% 05/01/09............. A1/A+ 3,241
5,000 Fulton and De Kalb Counties,
Georgia, Hospital Authority,
GO Refunding Certificates,
(Grady Memorial Hospital
Project) Series 1993, (MBIA
Insured),
5.250% 01/01/04............. Aaa/AAA 5,279
1,105 Fulton County, Georgia,
Development Authority,
Revenue, (Clark Atlanta
University Project) Series
1995, (CONNIE LEE Insured),
5.100% 01/01/05............. Baa3/AAA 1,158
300 Georgia State, GO, Series
1991D,
7.000% 11/01/00............. Aaa/AAA 317
2,940 Georgia State, GO, Series
1995,
7.250% 09/01/04............. Aaa/AAA 3,416
300 Georgia, Municipal Electric
Authority, Power Revenue
Refunding, Series 1991U,
Prerefunded 01/01/01 @ 102,
6.800% 01/01/03............. Aaa/AAA 322
4,000 Gwinnett County, Georgia,
School District, GO
Refunding, Series 1992B,
6.200% 02/01/03............. Aa1/AA+ 4,341
--------
20,676
--------
HAWAII -- 1.2%
1,000 Hawaii State, GO, Series
1991BU,
5.850% 11/01/01............. A1/A+ 1,052
2,000 Hawaii State, GO, Series
1995CJ,
5.625% 01/01/02............. A1/A+ 2,091
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 96
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
HAWAII -- (CONTINUED)
$ 5,000 Hawaii State, GO, Series
1997CN, (FGIC Insured),
6.250% 03/01/04............. Aaa/AAA $ 5,488
2,500 Honolulu, Hawaii, City and
County, GO Refunding, Series
1990A,
7.350% 07/01/07............. Aa3/AA- 3,005
--------
11,636
--------
ILLINOIS -- 8.1%
2,500 Chicago, Illinois, Gas Supply
Revenue, (Peoples Gas Light
and Coke Project) Series
1985A,
6.875% 03/01/15............. Aa3/AA- 2,719
1,100 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Greater Chicago Capital
Improvement GO, Series 1993,
5.000% 12/01/02............. Aa2/AA 1,148
2,165 Chicago, Illinois,
Metropolitan Water
Reclamation, Greater Chicago
Capital Improvement GO,
Series 1995,
5.750% 12/01/01............. Aa2/AA 2,285
2,000 Chicago, Illinois, O'Hare
International Airport
Revenue, (Passenger
Facilities Charge Project)
Series 1996B, AMT, (AMBAC
Insured),
5.000% 01/01/02............. Aaa/AAA 2,056
10,200 Chicago, Illinois, Park
District, GO, Series 1995,
6.600% 11/15/14............. Aa3/AA 11,668
2,000 Chicago, Illinois, School
Finance Authority, GO,
Series 1994A, (MBIA
Insured),
4.800% 06/01/04............. Aaa/AAA 2,067
1,160 Chicago, Illinois, School
Finance Authority, GO,
Series 1994A, (MBIA
Insured),
4.900% 06/01/05............. Aaa/AAA 1,206
4,000 Chicago, Illinois, Water
Revenue, Series 1992, (AMBAC
Insured),
5.400% 11/01/02............. Aaa/AAA 4,210
2,000 Cook County, Illinois,
Community College District
Number 508, Certificates of
Participation, Series 1990,
(FGIC Insured),
8.750% 01/01/07............. Aaa/AAA 2,567
1,500 Cook County, Illinois, GO,
Series 1996, (FGIC Insured),
5.100% 11/15/03............. Aaa/AAA 1,578
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
ILLINOIS -- (CONTINUED)
$ 1,145 Du Page County, Illinois,
School District, GO, Series
1997, (FGIC Insured),
6.750% 02/01/11............. Aaa/NR $ 1,362
1,100 Illinois State, GO, Series
1994,
5.500% 08/01/03............. Aa2/AA 1,171
12,500 Illinois State, Sales Tax
Revenue Refunding, Series
1993S,
6.000% 06/15/03............. Aa2/AAA 13,544
7,560 Illinois Student Assistance
Commission, Student Loan
Revenue, Series 1999RR, AMT,
(GTD STD LNS),
4.250% 09/01/06............. Aaa/NR 7,489
1,000 Illinois, Health Facilities
Authority, Revenue
Refunding, (Lutheran General
Health Systems Project)
Series 1993C,
5.250% 04/01/02............. A1/A+ 1,036
1,595 Lake County, Illinois, High
School District Number 125,
GO, Series 1996,
5.000% 01/01/04............. Aa1/NR 1,668
1,050 Lansing, Illinois, Sales Tax
Increment Revenue Refunding,
(Landings Redevelopment
Project) Series 1992,
6.500% 12/01/02............. NR/BBB 1,130
2,400 Metropolitan Pier and
Exposition, Revenue, Series
1992, (MBIA-IBC Insured),
6.500% 06/01/05............. Aaa/AAA 2,709
2,000 Metropolitan Pier and
Exposition Authority,
Revenue Refunding, Series
1996A, (AMBAC Insured),
6.000% 12/15/06............. Aaa/AAA 2,233
1,000 Regional Transportation
Authority of Illinois,
Revenue, Series 1991A, (FGIC
Insured), Prerefunded
11/01/01 @ 102,
6.350% 11/01/04............. Aaa/AAA 1,086
3,300 Regional Transportation
Authority of Illinois,
Revenue, Series 1994A,
(AMBAC Insured),
5.800% 06/01/05............. Aaa/AAA 3,599
8,750 Springfield, Illinois,
Airport Authority, Airport
Revenue, (General Electric
Company - Garrett Aviation
Services Project) Series
1998, AMT,
4.400% 02/01/08............. Aaa/AAA 8,751
--------
77,282
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 97
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
INDIANA -- 0.5%
$ 1,280 Indiana, Health Facilities
Financing Authority,
Hospital Revenue Refunding,
(Methodist Hospital of
Indiana, Inc. Project)
Series 1992,
6.200% 09/15/00............. A/NR $ 1,329
1,040 Indiana, Health Facilities
Financing Authority,
Hospital Revenue Refunding,
(Methodist Hospital of
Indiana, Inc. Project)
Series 1992,
6.500% 09/15/02............. A/NR 1,124
2,000 Indiana, Health Facilities
Financing Authority,
Hospital Revenue, (Clarian
Health Partners, Inc.
Project) Series 1996A,
5.000% 02/15/04............. Aa3/AA 2,072
--------
4,525
--------
IOWA -- 1.4%
5,650 Iowa, Student Loan Liquidity
Corporation, Student Loan
Revenue Refunding, Series
1998J, AMT, (AMBAC Insured),
4.800% 06/01/09............. Aaa/AAA 5,677
7,000 Iowa, Student Loan Liquidity
Corporation, Student Loan
Revenue, (Iowa College
Student Aid Project) Series
1997B, AMT,
4.900% 12/01/05............. Aaa/NR 7,245
--------
12,922
--------
KANSAS -- 1.3%
5,000 Kansas State, Department of
Transportation, Highway
Revenue, Series 1992,
7.250% 03/01/05............. Aa2/AA+ 5,825
5,000 Kansas State, Development
Finance Authority, Revenue,
(Board of Regents -
Rehabilitation Project)
Series 1997G-2, (AMBAC
Insured),
5.500% 10/01/06............. Aaa/AAA 5,438
2,175 Labette County, Kansas,
Single-Family Mortgage
Revenue, Zero Coupon Capital
Accumulator Bonds, Series
1982,
4.930%+ 12/01/14............ Aaa/A- 1,014
--------
12,277
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MAINE -- 0.1%
$ 1,000 Maine, Municipal Board,
Revenue Refunding, Series
1995E, (AMBAC Insured),
5.250% 11/01/04............. Aaa/AAA $ 1,067
--------
MARYLAND -- 2.1%
2,000 Baltimore County, Maryland,
Consolidated Public
Improvement GO, Series 1990,
Prerefunded 04/01/00 @ 102,
6.900% 04/01/03............. Aaa/AAA 2,113
1,500 Baltimore, Maryland, Port
Facilities Revenue, (E.I.
duPont de Nemours Project)
Series 1985,
6.500% 12/01/10............. Aa3/AA- 1,648
1,500 Maryland State, GO Refunding,
Series 1990-3, Prerefunded
07/15/00 @ 101.5,
6.800% 07/15/04............. Aaa/AAA 1,588
4,890 Maryland State, GO Refunding,
Series 1991-3,
6.250% 07/15/02............. Aaa/AAA 5,166
860 Maryland State,
Transportation Authority,
Special Obligation Revenue,
(Baltimore-Washington D.C.
International Airport
Project) Series 1994A, AMT,
(FGIC Insured),
6.400% 07/01/19............. Aaa/AAA 893
3,500 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993, (FSA
Insured),
5.200% 06/15/06............. Aaa/AAA 3,699
2,500 Washington County, Maryland,
Suburban Sanitation District
Authority, Water Supply GO
Refunding, Series 1993,
4.900% 12/01/05............. Aa1/AA 2,632
2,000 Washington County, Maryland,
Suburban Sanitation District
Authority, General
Construction GO Refunding,
Series 1993,
5.000% 06/01/04............. Aa1/AA 2,105
--------
19,844
--------
MASSACHUSETTS -- 5.0%
400 Massachusetts State,
Consolidated Loan GO, Series
1991D,
6.375% 07/01/00............. Aa3/AA- 415
1,000 Massachusetts State, GO
Refunding, Series 1993B,
5.000% 11/01/01............. Aa3/AA- 1,036
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 98
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MASSACHUSETTS -- (CONTINUED)
$ 5,000 Massachusetts State, GO
Refunding, Series 1993C,
5.000% 08/01/07............. Aa3/AA- $ 5,209
12,840 Massachusetts State, GO
Refunding, Series 1993C,
(AMBAC Insured),
4.950% 08/01/05............. Aaa/AAA 13,502
6,000 Massachusetts State, Water
Resources Authority, General
Revenue Refunding, Series
1993B,
5.125% 03/01/04............. A1/A 6,296
4,175 Massachusetts, Educational
Financing Authority,
Educational Loan Revenue
Refunding, Series 1999A,
AMT, (AMBAC Insured),
4.750% 07/01/11............. Aaa/AAA 4,144
4,500 Massachusetts, Educational
Financing Authority,
Educational Revenue, Series
1998A, AMT, (MBIA Insured),
4.800% 12/01/09............. Aaa/AAA 4,517
3,325 Massachusetts, Educational
Financing Authority,
Educational Revenue, Series
1998C, AMT, (MBIA Insured),
4.700% 12/01/09............. Aaa/AAA 3,334
3,745 Massachusetts, Educational
Financing Authority,
Educational Revenue, Series
1998C, AMT, (MBIA Insured),
4.600% 12/01/08............. Aaa/AAA 3,754
2,000 New England Education Loan
Marketing Company of
Massachusetts, Student Loan
Revenue Refunding, Series
1993A, AMT,
5.700% 07/01/05............. A1/A- 2,122
2,000 University of Lowell Building
Authority of Massachusetts,
Revenue, Series 1995A,
(AMBAC Insured)
5.700% 11/01/09............. Aaa/AAA 2,189
--------
46,518
--------
MICHIGAN -- 1.4%
1,540 Detroit, Michigan, City
School District, GO
Refunding, Series 1998C,
(FGIC Insured),
5.000% 05/01/09............. Aaa/AAA 1,603
7,500 Detroit, Michigan, Convention
Facilities, Revenue
Refunding, (Cobo Hall
Expansion Project) Series
1993, (FSA Insured),
5.100% 09/30/04............. Aaa/AAA 7,889
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MICHIGAN -- (CONTINUED)
$ 1,000 Detroit, Michigan, GO
Refunding, Series 1995B,
6.750% 04/01/03............. Baa1/A- $ 1,091
2,000 Detroit, Michigan, GO
Refunding, Series 1995B,
7.000% 04/01/04............. Baa1/A- 2,233
--------
12,816
--------
MINNESOTA -- 1.5%
3,000 Minnesota State, GO,
Refunding, Series 1998,
4.000% 11/01/04............. Aaa/AAA 3,030
1,390 Rochester, Minnesota, Health
Care Facilities Revenue,
(Mayo Foundation - Mayo
Medical Center Project)
Series 1988C,
7.100% 11/15/00............. NR/AA+ 1,471
2,150 Southern Minnesota Municipal
Power Agency, Power Supply
Systems Revenue, Refunded
Balance, Series 1992B,
5.800% 01/01/07............. Aaa/AAA 2,324
3,850 Southern Minnesota Municipal
Power Agency, Power Supply
Systems Revenue, Unrefunded
Balance, Series 1992B,
5.800% 01/01/07............. A2/A+ 4,095
900 St. Paul, Minnesota, Sewer
Revenue Refunding, Series
1993, (AMBAC Insured),
5.100% 12/01/01............. Aaa/AAA 936
1,785 Western Minnesota, Municipal
Power Agency of Minnesota,
Revenue Refunding, Series
1996A, (AMBAC Insured),
6.250% 01/01/06............. Aaa/AAA 2,007
--------
13,863
--------
MISSISSIPPI -- 1.2%
8,000 Adams County, Mississippi,
PCR, (International Paper
Company Project) Series
1994A,
5.500% 12/01/05............. A3/BBB+ 8,532
2,370 Mississippi, Higher Education
Authority Revenue, Series
1992C, AMT, (GTD STD LNS),
6.400% 01/01/03............. NR/A 2,527
--------
11,059
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 99
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSOURI -- 1.3%
$ 4,000 Kansas City, Missouri,
Industrial Development
Authority, IDR, (Owens-
Illinois, Inc. - Georgia-
Pacific Corporation Project)
Series 1998,
4.900% 12/31/08............. Baa2/NR $ 4,018
400 Metropolitan Saint Louis,
Missouri, Sewer District, GO
Refunding, Series 1991,
(FGIC Insured),
6.300% 02/15/01............. Aaa/AAA 409
400 Missouri State, Board of
Public Buildings, Revenue
Refunding, Series 1991,
5.900% 12/01/01............. Aa/AA 424
1,000 Missouri State, Environmental
Improvement and Energy
Resource Authority, PCR
Refunding, (Associated
Electrical Cooperation -
Thomas Hill Project ) Series
1996,
5.500% 12/01/05............. A1/AA 1,085
300 Missouri State, GO Refunding,
(Third State Building
Project) Series 1991B,
5.500% 11/01/01............. Aaa/AAA 315
1,500 Missouri State, Health and
Educational Facilities
Authority, Revenue
Refunding, (SSM Health Care
Project) Series 1992AA,
(MBIA Insured),
5.400% 06/01/00............. Aaa/AAA 1,535
600 Missouri State, Health and
Educational Facilities
Revenue Refunding,
(Christian Health Project)
Series 1991A , (FGIC
Insured), Prerefunded
02/15/01 @ 102,
6.600% 02/15/02............. Aaa/AAA 644
2,575 Missouri State, Health and
Educational Facilities
Revenue, (St. Louis
University Project) Series
1998,
5.250% 10/01/11............. A1/AA- 2,691
300 Missouri State, Water
Pollution Control, GO
Refunding, Series 1991B,
Prefunded 11/01/01 @ 100,
5.800% 11/01/03............. Aaa/AAA 316
600 St. Louis County, Missouri,
Pattonville R-3 School
District, GO, Series 1992,
(FGIC Insured),
5.700% 02/01/01............. Aaa/AAA 623
--------
12,060
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MONTANA -- 0.7%
$ 6,475 Lewis and Clark County,
Montana, Environmental
Facilities Revenue, (Asarco,
Inc. Project) Series 1998,
AMT,
5.850% 10/01/33............. Baa3/BBB- $ 6,420
--------
NEBRASKA -- 0.1%
1,000 Nebraska Public Power
District, Power Supply
Systems Revenue, Series
1993,
5.300% 01/01/02............. Aaa/AAA 1,042
--------
NEVADA -- 0.7%
1,000 Nevada State, GO, Series
1991A,
5.800% 05/01/00............. Aa2/AA 1,028
1,000 Nevada State, Municipal
Board, GO, (Bank Project
Number 28-31) Series 1989C,
7.000% 01/01/03............. Aaa/AAA 1,043
1,000 Nevada State, Municipal
Board, GO, (Bank Project
Number 38-39) Series 1992A,
6.000% 07/01/01............. NR/AA 1,052
2,910 Reno, Nevada, GO Refunding,
Series 1993A, (FGIC
Insured),
5.300% 04/01/05............. Aaa/AAA 3,066
--------
6,189
--------
NEW JERSEY -- 1.3%
1,100 Bergen County, New Jersey,
Utilities Authority, Water
PCR, Series 1992B, (FGIC
Insured),
5.500% 12/15/02............. Aaa/AAA 1,168
3,230 Monmouth County, New Jersey,
Improvement Authority,
Revenue Refunding,
(Recreational Facilities
Project) Series 1997,
5.000% 12/01/04............. Aaa/AA+ 3,414
5,000 New Jersey State, GO
Refunding, Series 1992D,
5.500% 02/15/04............. Aa1/AA+ 5,359
1,100 New Jersey State,
Transportation Trust Fund
Authority, Transportation
Systems, Revenue Refunding,
Series 1994A, (AMBAC
Insured),
5.200% 12/15/00............. Aaa/AAA 1,135
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 100
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW JERSEY -- (CONTINUED)
$ 1,000 University of Medicine and
Dentistry, New Jersey,
Revenue, Series 1989C,
7.000% 12/01/00............. A3/AA- $ 1,043
--------
12,119
--------
NEW MEXICO -- 0.6%
2,000 New Mexico State, GO, Series
1995,
5.250% 09/01/03............. Aa1/AA+ 2,039
2,165 New Mexico, Mortgage Finance
Authority, Single-Family
Mortgage Revenue, Series
1997E-2, AMT,
(GNMA/FNMA/FHLMC COLL),
5.600% 07/01/17............. NR/AAA 2,233
1,335 New Mexico, Mortgage
Financial Authority, Single-
Family Mortgage Revenue,
Series 1997C-2, AMT,
(GNMA/FNMA/FHLMC COLL),
5.950% 07/01/17............. Aaa/NR 1,411
--------
5,683
--------
NEW YORK -- 4.8%
3,235 Metropolitan Transit
Authority of New York,
Commuter Facilities Revenue,
Series 1998A, (MBIA-IBC
Insured),
5.250% 07/01/08............. Aaa/AAA 3,462
10,000 Metropolitan Transportation
Authority of New York,
Service Contract Revenue,
Series 1997,
5.250% 07/01/17............. Baa1/BBB+ 10,030
3,000 New York City, New York,
Municipal Assistance
Corporation, Revenue, Series
1997J,
5.750% 07/01/03............. Aa2/AA 3,225
5,000 New York City, New York,
Transitional Finance
Authority Revenue, Future
Tax Secured, Series 1999B,
4.750% 11/01/18............. Aa3/AA 4,815
5,000 New York State, Dormitory
Authority, Revenue, (City
University Project) Series
1993B,
5.250% 07/01/06............. Baa1/BBB+ 5,261
7,000 New York State, Dormitory
Authority, State University
Educational Facilities
Revenue, Series 1993A,
5.400% 05/15/04............. A3/A- 7,406
5,950 New York State, GO Refunding,
Series 1998F,
5.000% 09/15/06............. A2/A 6,267
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NEW YORK -- (CONTINUED)
$ 395 New York, New York, GO,
Series 1993E, (MBIA-IBC
Insured), Prerefunded
05/15/03 @ 101.5,
5.800% 05/15/05............. Aaa/AAA $ 430
4,170 New York, New York, GO,
Unrefunded Balance, Series
1993-E, (MBIA-IBC Insured),
5.800% 05/15/05............. Aaa/AAA 4,494
--------
45,390
--------
NORTH CAROLINA -- 4.1%
8,000 Mecklenburg County, North
Carolina, GO Refunding,
Series 1992,
5.750% 03/01/03............. Aaa/AAA 8,481
3,000 Mecklenburg County, North
Carolina, Public Improvement
GO, Series 1992, Prerefunded
01/01/02 @ 101,
6.200% 01/01/04............. Aaa/AAA 3,223
5,000 North Carolina State, GO,
Series 1998A,
4.750% 04/01/15............. Aaa/AAA 4,978
10,000 North Carolina State, Public
School Building, GO, Series
1999,
4.600% 04/01/15............. Aaa/AAA 9,789
4,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue,
(Carolina Medicorp, Inc.
Project) Series 1996,
5.125% 05/01/16............. Aa3/AA 4,006
2,560 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Pitt
County Memorial Hospital
Project) Series 1998A,
5.000% 12/01/07............. Aa3/AA- 2,673
3,135 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Pitt
County Memorial Hospital
Project) Series 1998A,
4.400% 12/01/08............. Aa3/AA- 3,118
1,950 Wake County, North Carolina,
Special Obligation Revenue,
(Solid Waste Management
Projects) Series 1997,
5.000% 02/01/05............. Aa2/AA 2,050
--------
38,318
--------
OKLAHOMA -- 0.5%
5,000 Oklahoma, Development Finance
Authority, Revenue
Refunding, (Hillcrest
Healthcare Center Inc.
Project) Series 1999A,
5.625% 08/15/19............. Baa2/BBB+ 4,988
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 101
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
OREGON -- 0.6%
$ 3,000 Multnomah County, Oregon,
School District Number
1J-Portland, GO, Series
1996,
5.500% 06/01/05............. Aa3/AA- $ 3,242
1,300 Portland, Oregon, Sewer
Systems Revenue, Series
1994A,
5.450% 06/01/03............. A1/A+ 1,382
1,300 Washington County, Oregon,
Sewer Revenue Refunding,
Senior Lien, Series 1992A,
(AMBAC Insured),
5.300% 10/01/01............. Aaa/AAA 1,355
--------
5,979
--------
PENNSYLVANIA -- 3.4%
2,890 Erie, Pennsylvania, Water
Authority, Water Revenue,
Series 1991, Prerefunded
12/01/01 @ 100,
7.125% 12/01/11............. NR/BBB 3,137
9,180 Pennsylvania, Housing Finance
Agency, Single-Family
Mortgage Revenue, Series
1997A-61, AMT,
5.450% 10/01/21............. Aa2/AA+ 9,282
1,490 Pennsylvania, Housing Finance
Agency, Single-Family
Mortgage Revenue, Series
1998A-62, AMT,
5.100% 10/01/10............. Aa2/AA+ 1,523
1,580 Pennsylvania, Housing Finance
Agency, Single-Family
Mortgage Revenue, Series
1998A-62, AMT,
5.200% 10/01/11............. Aa2/AA+ 1,615
2,500 Philadelphia, Pennsylvania,
Industrial Development
Authority, IDR Refunding,
(Ashland Oil Inc. Project)
Series 1993,
5.700% 06/01/05............. Baa1/NR 2,630
3,985 Philadelphia, Pennsylvania,
Industrial Development
Authority, IDR,
(Philadelphia Airport
Systems Project) Series
1998A, AMT, (FGIC Insured),
5.000% 07/01/08............. Aaa/AAA 4,137
9,000 Philadelphia, Pennsylvania,
Water and Wastewater Systems
Revenue, Series 1993, (FGIC
Insured),
5.500% 06/15/03............. Aaa/AAA 9,556
--------
31,880
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
RHODE ISLAND -- 0.4%
$ 800 Pawtucket, Rhode Island, GO,
Series 1994, (FGIC Insured),
5.250% 04/15/01............. Aaa/AAA $ 827
3,000 Rhode Island State,
Consolidated Capital
Development Loan GO, Series
1992A,
5.400% 08/01/06............. A1/AA- 3,130
--------
3,957
--------
SOUTH CAROLINA -- 3.3%
12,000 Georgetown County, South
Carolina, PCR Refunding,
(International Paper
Company) Series 1999A,
5.125% 02/01/12............. A3/BBB+ 12,277
3,210 Greenville Hospital Systems
of South Carolina, Hospital
Facilities Revenue, Series
1996B, (GTY-AGMT),
5.500% 05/01/08............. Aa3/AA 3,442
5,160 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue, Series
1996B, (FGIC Insured),
6.000% 01/01/07............. Aaa/AAA 5,725
2,580 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue, Unrefunded
Balance, Series 1991A, (FGIC
Insured),
6.125% 01/01/03............. Aaa/AAA 2,773
3,665 Richland County, South
Carolina, Solid Waste
Disposal Facilities Revenue,
(Union Camp Corporation
Project) Series 1992A, AMT,
6.750% 05/01/22............. A1/A- 3,980
3,000 Spartanburg County, South
Carolina, Health Services
District, Hospital Revenue
Refunding, Series 1997B,
(MBIA Insured),
5.125% 04/15/17............. Aaa/AAA 3,003
--------
31,200
--------
SOUTH DAKOTA -- 1.2%
11,000 Education Loans Inc., South
Dakota, Student Loan
Revenue, Series 1998, AMT,
(GTD STD LNS),
4.950% 06/01/10............. Aaa/NR 11,102
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 102
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- 2.0%
$ 4,500 McMinn County, Tennessee,
Industrial Development
Board, Recycling Facilities
Revenue, (Bowater Inc.
Project) Series 1992, AMT,
7.400% 12/01/22............. Baa1/BBB $ 4,961
1,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health
and Educational Facilities
Board, Improvement Revenue
Refunding, (Meharry Medical
College Project) Series
1996, (AMBAC Insured),
6.000% 12/01/08............. Aaa/AAA 1,129
6,130 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Hospital
Revenue, (Charity Obligation
Group Project) Series 1999A,
5.125% 11/01/27............. Aa2/AA+ 5,912
5,555 Tennessee State, GO, Series
1995A,
7.000% 03/01/05............. Aaa/AAA 6,422
--------
18,424
--------
TEXAS -- 13.1%
2,175 Aldine, Texas, Independent
School District, GO
Refunding, Series 1997,
(PSFG Insured),
4.450%+ 02/15/07............ Aaa/AAA 1,538
2,555 Austin, Texas, Utilities
Systems Revenue, Series
1977-2,
5.600% 10/01/03............. Aaa/AAA 2,739
5,000 Austin, Texas, Utilities
Systems Revenue, Series
1986A, Prefunded 05/15/01 @
100,
8.000% 11/15/16............. Aaa/AAA 5,448
980 Brazos, Texas, Higher
Education Authority Inc.,
Revenue Refunding, Senior
Lien, Series 1994A-2, AMT,
(GTD STD LNS),
6.050% 06/01/03............. Aaa/NR 1,043
5,000 Carrollton, Texas, Farmers
Branch Independent School
District, GO, Series 1998,
(PSFG Insured),
4.600% 02/15/16............. Aaa/AAA 4,790
5,930 Crowley, Texas, Independent
School District, GO, Series
1997, (PSFG Insured),
5.125% 08/01/25............. Aaa/AAA 5,891
6,285 Crowley, Texas, Independent
School District, GO, Series
1997, (PSFG Insured),
5.125% 08/01/26............. Aaa/AAA 6,243
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 4,905 Dallas County, Texas, GO
Refunding, Series 1993B,
5.250% 08/15/09............. Aaa/AAA $ 5,283
5,000 Dallas, Texas, Waterworks and
Sewer Systems Revenue
Refunding, Series 1998, (FSA
Insured),
5.000% 10/01/29............. Aaa/AAA 4,870
2,350 Harris County, Texas, Health
Facilities Development
Authority, Hospital Revenue
Refunding, (Texas Childrens
Hospital Project) Series
1995, (MBIA Insured),
6.000% 10/01/05............. Aaa/AAA 2,590
5,000 Houston, Texas, Airport
Systems Revenue, Series
1998B, AMT, (FGIC Insured),
5.000% 07/01/16............. Aaa/AAA 4,949
1,245 Houston, Texas, GO, Series
1990, Prerefunded 03/01/00 @
100,
6.800% 03/01/01............. Aa3/AA- 1,286
7,000 Houston, Texas, Water and
Sewer Systems Revenue
Refunding, Junior Lien,
Series 1997D,
5.000% 12/01/25............. Aaa/AAA 6,828
2,500 Houston, Texas, Waterworks
and Sewer Systems Revenue,
Junior Lien, Series 1992A,
(MBIA Insured), Prerefunded
12/01/02 @ 102,
5.800% 12/01/04............. Aaa/AAA 2,721
1,500 Irving, Texas, Independent
School District, GO
Refunding, Series 1994,
(PSFG Insured),
3.910%+ 02/15/02............ Aaa/AAA 1,342
7,520 Lower Colorado River
Authority, Texas, Revenue
Refunding, Junior Lien,
(Fifth-Supply Project)
Series 1993, (AMBAC
Insured),
5.300% 01/01/06............. Aaa/AAA 7,935
5,000 North Central Texas, Health
Facilities Development
Corporation, Health
Facilities Revenue,
(Presbyterian Healthcare
Residential Project) Series
1996B, (MBIA Insured),
5.500% 06/01/16............. Aaa/AAA 5,351
5,210 North Central, Texas, Health
Facilities Development
Corporation, Revenue
Refunding, (Baylor Health
Care Systems Project) Series
1995,
5.500% 05/15/13............. Aa/AA 5,468
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 103
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 410 San Antonio, Texas, Electric
and Gas Revenue,
Prerefunded,
5.200% 02/01/01............. Aa1/AA $ 422
690 San Antonio, Texas, Electric
and Gas Revenue, Unrefunded
Balance, Series 1994,
5.200% 02/01/01............. Aa1/AA 710
415 San Antonio, Texas, Water
Revenue Refunding, Series
1992, (FGIC Insured),
5.900% 05/15/00............. Aaa/AAA 427
2,455 San Antonio, Texas, Water
Revenue, Unrefunded Balance,
Series 1992, (FGIC Insured),
5.900% 05/15/00............. Aaa/AAA 2,526
2,000 Southwest Higher Education
Authority, Inc., Higher
Education Revenue Refunding,
(Southern Methodist
University Project) Series
1995, (FSA Insured),
5.125% 10/01/16............. Aaa/AAA 2,025
4,805 Tarrant County, Texas, Health
Facilities Development
Corporation, Health Systems
Revenue, (Texas Health
Resources Systems Project)
Series 1997A, (MBIA
Insured),
5.750% 02/15/10............. Aaa/AAA 5,242
5,000 Tarrant County, Texas, Health
Facilities Development
Corporation, Health Systems
Revenue, (Texas Health
Resources Systems Project)
Series 1997A, (MBIA
Insured),
5.250% 02/15/17............. Aaa/AAA 5,062
3,200 Texas A&M University,
Financing Systems Revenue,
Series 1995,
5.950% 05/15/05............. Aa2/AA+ 3,520
5,500 Texas State, Public Finance
Authority, Building Revenue
Refunding, Series 1990,
(MBIA Insured),
6.600% 02/01/00............. Aaa/AAA 5,653
900 Texas State, Public Finance
Authority, GO, Series 1994B,
5.000% 10/01/01............. Aa2/AA 931
1,100 Texas State, Superconducting
GO Refunding, Series 1992C,
5.350% 04/01/01............. Aa2/AA 1,138
1,000 Texas State, Veterans Housing
Assistance GO, Series
1994B-4, AMT,
6.100% 12/01/06............. Aa2/AA 1,073
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 4,790 Texas, Municipal Power
Agency, Revenue, Refunded
Balance, Series 1992, (MBIA
Insured), Prerefunded
09/01/02 @ 100,
5.750% 09/01/12............. Aaa/AAA $ 5,101
7,210 Texas, Municipal Power
Agency, Revenue, Series
1992, (MBIA Insured),
Prerefunded 09/01/02 @ 100,
5.750% 09/01/12............. Aaa/AAA 7,679
300 University of Texas,
Permanent University Fund,
Revenue Refunding, Series
1991, Prerefunded 07/01/01 @
102,
6.700% 07/01/05............. Aaa/AAA 326
5,335 University of Texas,
Permanent University Fund,
Revenue Refunding, Series
1996, (PUFG),
4.700% 07/01/09............. Aaa/AAA 5,440
--------
123,590
--------
UTAH -- 0.6%
2,995 Cache County, Utah, School
District, Utah School Board
Guaranty Program, GO
Refunding, Series 1997, (SCH
BD GTY),
5.500% 06/15/06............. NR/AAA 3,244
2,145 Cache County, Utah, School
District, Utah School Board
Guaranty Program, GO
Refunding, Series 1997, (SCH
BD GTY),
5.500% 06/15/07............. NR/AAA 2,329
300 Davis County, Utah, School
District, GO, Series 1991,
(FGIC Insured), Prerefunded
12/01/01 @ 100,
6.450% 06/01/02............. Aaa/AAA 322
--------
5,895
--------
VIRGINIA -- 6.6%
6,170 Chesapeake, Virginia, GO
Refunding, Series 1993,
5.000% 12/01/03............. Aa3/AA 6,494
4,000 Chesterfield County,
Virginia, Improvement GO
Refunding, Series 1991,
6.250% 07/15/05............. Aaa/AAA 4,298
6,000 Covington-Allegheny County,
Virginia, Industrial
Development Authority, PCR
Refunding, (Westvaco
Corporation Project) Series
1994,
5.900% 03/01/05............. A1/A 6,594
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 104
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 5,790 Fairfax County, Virginia, GO
Refunding, Series 1993C,
(State Aid Withholding),
5.000% 05/01/05............. Aaa/AAA $ 6,118
2,500 Newport News, Virginia, GO
Refunding, Series 1993B,
(State Aid Withholding),
5.400% 11/01/06............. Aa2/AA 2,672
1,000 Norfolk, Virginia, GO, Series
1995,
5.250% 06/01/01............. A1/AA 1,036
1,500 Norfolk, Virginia, Industrial
Development Authority,
Hospital Revenue, (Sentara
Hospitals, Norfolk Project)
Series 1994A,
4.600% 11/01/04............. Aa2/AA 1,537
3,000 Virginia Beach, Virginia, GO
Refunding, Series 1993,
5.100% 07/15/05............. Aa2/AA 3,180
1,500 Virginia State, Public
Facilities GO, Series 1993A,
5.400% 06/01/05............. Aaa/AAA 1,611
1,100 Virginia State, Higher
Educational Institutions GO,
Series 1992C,
5.900% 06/01/05............. Aaa/AAA 1,172
4,845 Virginia State, Housing
Development Authority,
Multi-Family Housing
Revenue, Series 1999B, AMT,
5.200% 05/01/19............. Aa1/AA+ 4,821
7,620 Virginia State, Public School
Authority, Revenue
Refunding, (School Financing
Project) Series 1997-1,
5.250% 08/01/09............. Aa1/AA+ 8,172
7,000 Virginia State, Public School
Authority, Revenue
Refunding, Series 1993B,
(State Aid Withholding),
5.250% 01/01/07............. Aa1/AA 7,415
1,520 Virginia State, Public School
Authority, Revenue, Series
1991A,
6.000% 01/01/00............. Aa1/AA 1,552
2,265 Virginia State, Public School
Authority, Revenue, Series
1992A, (State Aid
Withholding),
6.000% 01/01/00............. Aa1/AA 2,313
2,600 Virginia, College Building
Authority, Educational
Facilities Revenue
Refunding, (University of
Richmond Project) Series
1992,
5.625% 11/01/02............. NR/AA 2,701
--------
61,686
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
WASHINGTON -- 5.4%
$ 2,500 King County, Washington, GO
Refunding, Series 1993C,
5.625% 06/01/02............. Aa1/AA+ $ 2,640
510 King County, Washington, GO,
Unrefunded Balance, Series
1993A,
5.250% 12/01/01............. Aa1/AA+ 532
1,195 King County, Washington,
School District Number 415,
GO, Series 1996, (FSA
Insured),
5.100% 06/01/04............. Aaa/AAA 1,259
3,000 Pierce County, Washington,
School District Number 003,
GO Refunding, Series 1996,
(FGIC Insured),
5.000% 12/01/03............. Aaa/AAA 3,149
1,500 Snohomish County, Washington,
School District No. 103, GO,
Series 1996, (FGIC Insured),
5.150% 06/01/05............. Aaa/AAA 1,588
2,500 Tacoma, Washington, Electric
Systems Revenue Refunding,
Series 1992B, (AMBAC
Insured),
5.900% 01/01/05............. Aaa/AAA 2,673
800 Tacoma, Washington,
Electrical Systems Revenue
Refunding, Series 1994,
(FGIC Insured),
5.500% 01/01/01............. Aaa/AAA 826
1,000 Tacoma, Washington, GO,
Series 1992A,
5.750% 07/01/02............. A1/A+ 1,058
3,500 Washington State, GO
Refunding, Series 1991R-92A,
6.400% 09/01/03............. Aa1/AA+ 3,740
900 Washington State, GO
Refunding, Series 1992R-92C,
5.600% 09/01/01............. Aa1/AA+ 942
10,000 Washington State, GO
Refunding, Series 1993R-93B,
5.125% 10/01/04............. Aa1/AA+ 10,581
1,000 Washington State, GO, Series
1990B,
6.550% 08/01/00............. Aa1/AA+ 1,041
500 Washington State, GO, Series
1991B, Prerefunded 06/01/01
@ 100,
6.300% 06/01/02............. Aa1/AA+ 528
900 Washington State, GO, Series
1992-93A,
5.250% 10/01/00............. Aa1/AA+ 925
3,840 Washington State, Housing
Finance Commission, Revenue,
(Single Family Program)
Series 1998A-1, AMT,
(GNMA/FNMA COLL),
5.250% 12/01/18............. Aaa/NR 3,880
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 105
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WASHINGTON -- (CONTINUED)
$ 7,500 Washington State, Public
Power Supply Systems Revenue
Refunding, Series 1990C,
(FGIC Insured),
7.000% 07/01/01............. Aaa/AAA $ 8,031
2,000 Washington State, Public
Power Supply Systems Revenue
Refunding, Series 1991A,
6.500% 07/01/03............. Aa/AA 2,145
1,150 Washington State, Public
Power Supply Systems Revenue
Refunding, Series 1993A,
5.800% 07/01/07............. Aa1/AA- 1,263
3,000 Washington State, Public
Power Supply Systems Revenue
Refunding, Series 1993B,
(FSA Insured),
5.400% 07/01/05............. Aaa/AAA 3,213
1,000 Washington State, Public
Power Supply Systems Revenue
Refunding, Series 1996A,
(AMBAC Insured),
5.500% 07/01/04............. Aaa/AAA 1,070
--------
51,084
--------
WEST VIRGINIA -- 0.2%
2,000 West Virginia State, Building
Commission, Lease Revenue,
(West Virginia Regional Jail
and Correction Project)
Series 1990A, (MBIA
Insured),
6.700% 07/01/02............. Aaa/AAA 2,121
--------
WISCONSIN -- 2.2%
300 Milwaukee, Wisconsin, GO,
Series 1991BZ, Prerefunded
06/15/01 @ 100,
6.375% 06/15/03............. Aa1/AA+ 318
3,000 Milwaukee, Wisconsin,
Metropolitan Sewer District,
GO Refunding, Series 1997A,
5.500% 10/01/09............. Aa1/AA+ 3,286
300 Milwaukee, Wisconsin,
Metropolitan Sewer District,
GO, Series 1989A,
7.000% 09/01/00............. Aa1/AA+ 315
400 Milwaukee, Wisconsin,
Metropolitan Sewer District,
GO, Series 1990A,
6.700% 10/01/00............. Aa1/NR 420
5,000 Milwaukee, Wisconsin,
Metropolitan Sewer District,
GO, Series 1990A,
6.700% 10/01/01............. Aa1/NR 5,367
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATING VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
WISCONSIN -- (CONTINUED)
$ 3,070 Sun Prairie, Wisconsin, Area
School District, GO,
Promissory Notes, Series
1996, (FGIC Insured),
5.500% 04/01/03............. Aaa/AAA $ 3,258
900 Wisconsin State, GO
Refunding, Series 1993-1,
5.100% 11/01/01............. Aa2/AA 935
3,625 Wisconsin State, GO
Refunding, Series 1993-2,
5.125% 11/01/08............. Aa2/AA 3,861
2,735 Wisconsin, Housing and
Economic Development
Authority, Revenue, Series
1997G,
5.350% 03/01/12............. Aa2/AA 2,807
--------
20,567
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $879,025).......................... 919,515
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.5%
(Cost $23,205)
23,205 AIM Tax-Exempt Fund........................ 23,205
--------
TOTAL INVESTMENTS
(Cost $902,230*)................... 100.4% 942,720
--------
OTHER ASSETS AND
LIABILITIES (NET).................. (0.4)%
Receivable for Fund shares sold............ $ 1,559
Interest receivable........................ 13,510
Prepaid expenses........................... 12
Payable for Fund shares redeemed........... (1,026)
Investment advisory fee payable............ (270)
Administration fee payable................. (117)
Shareholder servicing and distribution fees
payable................................... (7)
Distributions payable...................... (3,627)
Payable for investment securities
purchased................................. (13,976)
Accrued Trustees' fees and expenses........ (13)
Accrued expenses and other liabilities..... (182)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)......................... (4,137)
--------
NET ASSETS.......................... 100.0% $938,583
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 752
Accumulated net realized gain on
investments sold.......................... 1,426
Net unrealized appreciation of
investments............................... 40,490
Paid-in capital............................ 895,915
--------
NET ASSETS................................. $938,583
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 106
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($918,367,634/89,137,407
shares outstanding)....................... $10.30
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($16,148,753/1,567,635 shares
outstanding).............................. $10.30
------
------
Maximum sales charge....................... 3.25%
Maximum offering price per share........... $10.65
INVESTOR B SHARES:
Net asset value and offering price per
share** ($2,555,780/248,064 shares
outstanding).............................. $10.30
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,511,163/146,671 shares
outstanding).............................. $10.30
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $41,020 and gross
depreciation of $530 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $902,230.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
MBIA 12.50%
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE> 107
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.9%
ALABAMA -- 2.7%
$ 2,000 Birmingham, Alabama, GO
Refunding, Series 1992B,
6.250% 04/01/12............. Aa3/AA $ 2,162
3,000 Butler County, Alabama,
Industrial Development
Board, Solid Waste Disposal
Revenue, (James River
Corporation of Virginia
Project) Series 1994, AMT,
8.000% 09/01/28............. NR/BBB- 3,379
7,210 Courtland, Alabama,
Industrial Development
Board, Solid Waste Disposal
Revenue Refunding, (Champion
International Corporation
Project) Series 1997, AMT,
5.750% 11/01/27............. Baa1/NR 7,275
2,400 Daphne, Alabama, Special Care
Facilities Financing
Authority, Revenue,
(Presbyterian Retirement
Corporation Project) Series
1988A, Prerefunded 08/15/01
@ 100,
7.300% 08/15/18............. NR/NR 2,591
2,000 Jefferson County, Alabama,
Sewer Revenue Refunding,
Series 1997A, (FGIC
Insured),
5.625% 02/01/22............. Aaa/AAA 2,102
1,000 Morgan County-Decatur,
Alabama, Health Care
Authority, Hospital Revenue
Refunding, (Decatur General
Hospital Project) Series
1994, (CONNIE LEE Insured),
6.250% 03/01/13............. NR/AAA 1,095
--------
18,604
--------
ALASKA -- 1.9%
1,500 Alaska, Student Loan
Corporation, Student Loan
Revenue, Series 1997A, AMT,
(AMBAC Insured),
5.250% 07/01/07............. Aaa/AAA 1,560
1,000 Anchorage, Alaska, Electric
Utilities Revenue Refunding,
Senior Lien, Series 1993,
(MBIA Insured),
8.000% 12/01/09............. Aaa/AAA 1,301
7,000 Anchorage, Alaska, Electric
Utilities Revenue, Senior
Lien, Series 1996B, (MBIA
Insured),
5.500% 02/01/26............. Aaa/AAA 7,226
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
ALASKA -- (CONTINUED)
$ 2,250 Anchorage, Alaska, Telephone
Utilities Revenue Refunding,
Series 1994A, (AMBAC
Insured),
4.500% 12/01/02............. Aaa/AAA $ 2,307
1,000 North Slope Borough, Alaska,
Capital Appreciation GO,
Series 1995A, (MBIA
Insured),
4.390%+ 06/30/06............ Aaa/AAA 730
--------
13,124
--------
ARIZONA -- 2.0%
3,000 Maricopa County, Arizona,
School District Number 006,
GO, (Projects of 1996)
Series 1998, (FGIC Insured),
4.000% 07/01/10............. Aaa/AAA 2,863
4,000 Maricopa County, Arizona,
Unified School District
Number 4, GO Refunding,
Series 1993, (FGIC Insured),
3.870%+ 07/01/02............ Aaa/AAA 3,531
1,000 Maricopa County, Arizona,
Unified School District
Number 48, GO Refunding,
Series 1991B,
6.300% 07/01/04............. Aa2/AA 1,112
1,300 Maricopa County, Arizona,
Unified School District
Number 48, GO Refunding,
Series 1993B,
4.600% 07/01/11............. Aa2/AA 1,299
2,000 Salt River Project, Arizona,
Agricultural Improvement
Revenue, Series 1992C,
6.250% 01/01/19............. Aa2/AA 2,147
5,000 Tucson and Pima County,
Arizona, Industrial
Development Authority,
Single-Family Mortgage
Revenue, Series 1983A,
5.000%+ 12/01/14............ Aaa/AAA 2,328
--------
13,280
--------
ARKANSAS -- 0.7%
1,300 Arkansas State, Development
Finance Authority, Revolving
Loan Fund, Wastewater
Systems Revenue, Series
1996A,
5.700% 12/01/12............. NR/AA 1,391
3,425 Blytheville, Arkansas, Solid
Waste Recycling and Sewer
Treatment Revenue, (Nucor
Corporation Project) Series
1993, AMT,
6.375% 01/01/23............. A1/AA- 3,665
--------
5,056
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE> 108
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
CALIFORNIA -- 2.6%
$ 2,900 California State, Department
of Water Resources, Central
Water Systems Revenue,
(Central Valley Project)
Series 1995O,
5.000% 12/01/12............. Aa2/AA $ 2,982
1,000 California State, GO, Series,
1988,
7.100% 09/01/02............. Aa3/A+ 1,112
1,000 California State, GO, Series
1990,
7.000% 08/01/04............. Aa3/A+ 1,153
1,000 Los Angeles, California,
Wastewater Systems Revenue
Refunding, Series 1993C,
(MBIA Insured),
5.500% 06/01/14............. Aaa/AAA 1,053
3,000 Metropolitan Water District
of Southern California,
Waterworks Revenue, Series
1992,
5.500% 07/01/19............. Aa2/AA 3,127
2,000 Metropolitan Water District
of Southern California,
Waterworks Revenue, Series
1995A, (MBIA Insured),
5.750% 07/01/15............. Aaa/AAA 2,156
2,595 San Francisco, California,
City and County Airport
Commission, International
Airport Revenue, Series
1995-2-9B, (FGIC Insured),
5.250% 05/01/13............. Aaa/AAA 2,694
3,500 Southern California, Public
Power Authority, Revenue
Refunding, (Palo Verde
Project) Series 1993A,
5.000% 07/01/15............. A2/A+ 3,556
--------
17,833
--------
COLORADO -- 0.7%
1,500 Arapahoe County, Colorado,
Capital Improvement
Transportation Federal
Highway Revenue, Series
1986E-470, Prerefunded
08/31/05 @ 103,
6.900% 08/31/15............. Aaa/NR 1,780
2,500 Douglas County, Colorado,
Sales and Use Tax Revenue,
Series 1996, (MBIA Insured),
5.500% 10/15/11............. Aaa/AAA 2,678
--------
4,458
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
CONNECTICUT -- 0.6%
$ 1,000 Connecticut State, GO, Series
1996A,
5.300% 05/15/10............. Aa3/AA $ 1,059
1,590 Connecticut State, Housing
Finance Authority, Revenue,
(Housing Mortgage Finance
Program) Series 1992B,
6.700% 11/15/12............. Aa2/AA 1,727
1,465 Connecticut State, Housing
Finance Authority, Revenue,
(Housing Mortgage Finance
Program) Series 1994A,
6.100% 05/15/13............. Aa2/AA 1,548
--------
4,334
--------
DISTRICT OF COLUMBIA -- 1.7%
7,000 District of Columbia,
Hospital Revenue Refunding,
(Medlantic Healthcare Group
Project) Series 1997A, (MBIA
Insured), Prerefunded
08/15/07 @ 102,
5.375% 08/15/15............. Aaa/AAA 7,354
3,905 District of Columbia, Revenue
Refunding, (Howard
University Project) Series
1996, (MBIA Insured),
5.750% 10/01/12............. Aaa/AAA 4,187
--------
11,541
--------
FLORIDA -- 5.7%
3,000 Florida State, Board of
Education, Capital Outlay,
GO, Series 1997A,
5.000% 01/01/17............. Aa2/AA+ 2,993
1,735 Florida State, Board of
Education, Capital Outlay,
GO, Unrefunded Balance,
Series 1985,
9.125% 06/01/14............. Aa2/AA+ 2,470
1,000 Florida State, Board of
Education, Public Education
Capital Outlay, GO
Refunding, Series 1995A,
5.500% 06/01/14............. Aa2/AA+ 1,056
3,400 Florida State, Division of
Bond Financing, Department
of General Services,
Revenue, (Department of
Natural Resources
Preservation 2000 Project)
Series 1991A, (AMBAC
Insured), Prerefunded
07/01/01 @ 102,
6.700% 07/01/05............. Aaa/AAA 3,694
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE> 109
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 2,000 Florida State, Division of
Financing, Department of
General Services, Revenue
Refunding, (Florida
Facilities Pool Project)
Series 1995B, (AMBAC
Insured),
5.700% 09/01/20............. Aaa/AAA $ 2,113
3,750 Jacksonville, Florida, PCR,
Refunding, (Anheuser-Busch
Companies, Inc. Project)
Series 1996,
5.700% 08/01/31............. A1/A+ 3,968
3,900 Martin County, Florida,
Industrial Development
Authority, Revenue,
(Indiantown Cogeneration
Project) Series 1994A, AMT,
7.875% 12/15/25............. Baa3/BBB- 4,056
1,000 North Broward, Florida,
Hospital District Revenue
Refunding, Series 1992,
(MBIA Insured), Prerefunded
01/01/02 @ 102,
6.250% 01/01/06............. Aaa/AAA 1,084
1,000 Orlando and Orange County,
Florida, Expressway
Authority, Revenue, Junior
Lien, Series 1990, (FGIC
Insured),
6.500% 07/01/10............. Aaa/AAA 1,182
1,500 Orlando, Florida, Utilities
Commission Water and
Electric Utilities Revenue
Refunding, Series 1994A,
5.000% 10/01/20............. Aa/AA- 1,471
12,115 Polk County, Florida,
Industrial Development
Authority, Solid Waste
Disposal Facilities Revenue,
(Tampa Electric Company
Project) Series 1996, AMT,
5.850% 12/01/30............. Aa2/A1+ 12,887
2,000 South Broward, Florida,
Hospital District, Revenue
Refunding, Series 1993, (FSA
Insured),
5.500% 05/01/28............. Aaa/AAA 2,056
--------
39,030
--------
GEORGIA -- 8.0%
1,100 Atlanta, Georgia, GO, Series
1993,
5.600% 12/01/11............. Aa3/AA 1,188
5,000 Brunswick and Glynn County,
Georgia, Development
Authority, Revenue
Refunding, (Georgia Pacific
Corporation Project) Series
1998, AMT,
5.550% 03/01/26............. Baa2/NR 4,955
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$ 1,000 Cartersville, Georgia,
Development Authority, Sewer
Facilities Revenue
Refunding, (Anheuser-Busch
Companies, Inc. Project)
Series 1997, AMT,
6.125% 05/01/27............. A1/A+ $ 1,080
2,000 Coweta County, Georgia,
School System GO, Series
1992, Prerefunded 08/01/02 @
102,
6.300% 08/01/11............. A1/A 2,194
1,750 De Kalb County, Georgia, GO
Refunding, Series 1993,
5.250% 01/01/20............. Aa1/AA+ 1,770
2,000 De Kalb County, Georgia,
School District, GO, Series
1993A,
6.250% 07/01/09............. Aa/AA 2,313
3,000 Effingham County, Georgia,
Development Authority, Solid
Waste Disposal Revenue,
(Fort James Corporation
Project) Series 1998, AMT,
5.625% 07/01/18............. Baa2/BBB- 2,998
4,750 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
(St. Josephs Hospital
Project) Series 1994,
5.500% 10/01/18............. Aaa/A 5,018
3,000 Georgia State, GO Refunding,
Series 1992A,
6.250% 03/01/06............. Aaa/AAA 3,387
3,000 Georgia State, GO, Series
1992B,
6.250% 03/01/11............. Aaa/AAA 3,483
3,000 Georgia State, GO, Series
1996B,
6.250% 04/01/07............. Aaa/AAA 3,419
1,650 Gwinnett County, Georgia,
Water and Sewer Certificates
of Participation, Series
1991,
8.600% 08/01/03............. Aaa/AAA 1,961
2,080 Metropolitan Atlanta, Rapid
Transit Authority of
Georgia, Revenue Refunding,
Series 1991M,
6.350% 07/01/04............. A1/AA- 2,227
1,000 Metropolitan Atlanta, Rapid
Transit Authority of
Georgia, Revenue Refunding,
Series 1992P, (AMBAC
Insured),
6.000% 07/01/04............. Aaa/AAA 1,097
1,000 Metropolitan Atlanta, Rapid
Transit Authority of
Georgia, Revenue Refunding,
Series 1992P, (AMBAC
Insured),
6.100% 07/01/05............. Aaa/AAA 1,111
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE> 110
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 2,000 Metropolitan Atlanta, Rapid
Transit Authority of
Georgia, Revenue Refunding,
Series 1992P, (AMBAC
Insured),
6.250% 07/01/20............. Aaa/AAA $ 2,325
2,000 Monroe County, Georgia
Development Authority, PCR,
(Oglethorpe Power
Corporation Project) Series
1992A,
6.800% 01/01/11............. A3/A 2,365
3,000 Savannah, Georgia, Hospital
Authority, Hospital
Improvement Revenue
Refunding, (Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @ 102,
7.000% 01/01/23............. Ba1/BB 3,364
2,000 Savannah, Georgia, Hospital
Authority, Hospital
Improvement Revenue, (St.
Joseph's Hospital Project)
Series 1993, Prerefunded
07/01/03 @ 102,
6.125% 07/01/12............. A3/NR 2,203
2,690 Union County, Georgia,
Housing Authority, Multi-
Family Housing Revenue
Refunding, (Hidden Lake
Apartments Ltd. Project)
Series 1994A, (FHA, FNMA
COLL),
7.125% 12/01/25............. Aaa/NR 2,927
3,000 White County, Georgia,
Industrial Development
Authority, Revenue
Refunding, (Springs
Industries, Inc. Project)
Series 1992,
6.850% 06/01/10............. NR/BBB+ 3,179
--------
54,564
--------
HAWAII -- 1.4%
1,900 Hawaii State, Department of
Budget and Finance, Special
Purpose Mortgage Revenue,
(Hawaiian Electric Company
and Subsidiaries Project)
Series 1992, AMT, (MBIA
Insured),
6.550% 12/01/22............. Aaa/AAA 2,079
3,000 Hawaii State, GO, Series
1997CN, (FGIC Insured),
6.250% 03/01/04............. Aaa/AAA 3,293
1,180 Honolulu, Hawaii, City and
County, GO Refunding, Series
1993B,
8.000% 10/01/10............. Aa3/AA- 1,533
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
HAWAII -- (CONTINUED)
$ 320 Honolulu, Hawaii, City and
County, GO, Refunding,
Series B,
8.000% 10/01/10............. Aa3/AA- $ 419
2,100 Maui County, Hawaii, GO
Refunding, Series 1993,
(FGIC Insured),
5.000% 09/01/03............. Aaa/AAA 2,191
--------
9,515
--------
ILLINOIS -- 4.7%
3,385 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Capital Improvement GO,
Series 1991,
6.900% 01/01/07............. Aa2/AA 3,958
3,000 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding, Second
Lien, Series 1993C, (MBIA
Insured),
5.000% 01/01/18............. Aaa/AAA 2,964
2,640 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding, Senior
Lien, Series 1993A,
5.000% 01/01/16............. A1/A+ 2,596
1,500 Chicago, Illinois, O'Hare
International Airport,
Special Facilities Revenue
Refunding, (American
Airlines Inc. Project)
Series 1994, (GTY-AGMT),
8.200% 12/01/24............. Baa2/BBB- 1,765
2,000 Chicago, Illinois, Park
District, GO, Series 1996,
(MBIA Insured),
5.500% 01/01/16............. Aaa/AAA 2,084
1,000 Cook County, Illinois, Forest
Preserve District, Zoo GO,
Series 1996, (MBIA Insured),
5.800% 11/01/16............. Aaa/AAA 1,063
2,000 Cook County, Illinois, GO,
Series 1996, (FGIC Insured),
5.900% 11/15/16............. Aaa/AAA 2,245
1,805 Glendale Heights, Illinois,
Hospital Revenue Refunding,
(Glendale Heights Project)
Series 1985B,
7.100% 12/01/15............. Aaa/AAA 2,157
2,000 Illinois State, GO, Series
1995, (MBIA Insured),
6.000% 02/01/16............. Aaa/AAA 2,160
1,500 Illinois State, Sales Tax
Revenue, Series 1994V,
6.375% 06/15/17............. Aa2/AAA 1,692
4,000 Illinois, Development Finance
Authority, PCR Refunding,
(Commonwealth Edison Company
Project) Series 1991,
7.250% 06/01/11............. Baa2/BBB 4,276
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE> 111
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$ 1,000 Illinois, Development Finance
Authority, PCR Refunding,
(Commonwealth Edison Company
Project) Series 1994D,
(AMBAC Insured),
6.750% 03/01/15............. Aaa/AAA $ 1,128
1,800 Illinois, Educational
Facilities Authority,
Revenue, (Northwestern
University Project) Series
1993,
5.375% 12/01/21............. Aa1/AA+ 1,830
2,680 Southern Illinois, Capital
Appreciation University
Revenue, (Housing and
Auxiliary Facilities Systems
Program) Series 1997, (MBIA
Insured),
4.400%+ 04/01/06............ Aaa/AAA 1,976
--------
31,894
--------
INDIANA -- 3.4%
2,500 Franklin, Indiana, Economic
Development Revenue
Refunding, (Hoover
Universal, Inc. Project)
Series 1994, (GTY-AGMT),
6.100% 12/01/04............. A2/A- 2,737
1,000 Hamilton Southeastern
Indiana, North Delaware
School Building Corporation,
First Mortgage Revenue,
Series 1996, (AMBAC Insured,
State Aid Withholding),
5.000% 07/15/07............. Aaa/AAA 1,052
1,000 Hamilton Southeastern
Indiana, North Delaware
School Building Corporation,
First Mortgage Revenue,
Series 1996, (AMBAC Insured,
State Aid Withholding),
5.100% 07/15/09............. Aaa/AAA 1,052
1,000 Hammond, Indiana, PCR,
(Stauffer Chemical Project),
Series 1982,
8.000% 11/01/12............. A1/NR 1,048
1,000 Indiana, Health Facilities
Financing Authority,
Hospital Revenue, (Clarian
Health Partners, Inc.
Project) Series 1996A,
5.500% 02/15/16............. Aa3/AA 1,026
10,000 Indianapolis, Indiana,
Airport Authority, Special
Facilities Revenue
Refunding, (Federal Express
Corporation Project) Series
1998, AMT,
5.500% 05/01/29............. Baa2/BBB 9,869
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
INDIANA -- (CONTINUED)
$ 2,000 Indianapolis, Indiana,
Airport Authority, Special
Facilities Revenue, (Federal
Express Corporation Project)
Series 1994, AMT,
7.100% 01/15/17............. Baa2/BBB $ 2,233
2,000 St. Joseph County, Indiana,
Educational Facilities
Revenue, (University of
Notre Dame-Du Lac Project)
Series 1996,
5.500% 03/01/26............. Aaa/NR 2,061
2,000 St. Joseph County, Indiana,
Educational Facilities
Revenue, (University of
Notre Dame-Du Lac Project)
Series 1997,
5.250% 03/01/21............. Aaa/NR 2,015
--------
23,093
--------
KANSAS -- 0.6%
2,000 Kansas City, Kansas, Utility
System Improvement Revenue
Refunding, Series 1994,
(FGIC Insured),
6.250% 09/01/14............. Aaa/AAA 2,229
2,000 Kansas State, Department of
Transportation, Highway
Revenue, Series 1992A,
Prerefunded 09/01/02 @ 102,
6.000% 09/01/07............. Aa2/AA+ 2,180
--------
4,409
--------
KENTUCKY -- 0.2%
1,000 Kentucky State, Turnpike
Authority, Economic
Development Revenue
Refunding, (Revitalization
Project) Series 1993, (AMBAC
Insured),
5.500% 07/01/08............. Aaa/AAA 1,092
--------
MAINE -- 0.2%
1,000 Maine, Health and Higher
Educational Facilities
Authority, Revenue, Series
1996B, (AMBAC Insured, State
Aid Withholding),
5.500% 07/01/16............. Aaa/AAA 1,037
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE> 112
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MASSACHUSETTS -- 3.4%
$ 2,885 Massachusetts Bay,
Transportation Authority,
Revenue, (General
Transportation Systems
Project) Series 1995A,
Prerefunded 03/01/05 @ 102,
5.750% 03/01/18............. Aa3/AA- $ 3,186
2,500 Massachusetts State,
Consolidated Loan GO, Series
1995A, (MBIA Insured),
Prerefunded 02/01/05 @ 101,
5.750% 02/01/13............. Aaa/AAA 2,745
2,000 Massachusetts State,
Consolidated Loan GO, Series
1996B, (FGIC Insured),
5.500% 06/01/10............. Aaa/AAA 2,140
3,750 Massachusetts State, GO
Refunding, Series 1996A,
(AMBAC Insured),
5.200% 11/01/12............. Aaa/AAA 3,909
3,000 Massachusetts State, Water
Resources Authority, Revenue
Refunding, Series 1992B,
6.250% 11/01/10............. A1/A 3,261
7,400 Massachusetts, State Port
Authority, Special
Facilities Revenue, (Bosfuel
Corporation Project) Series
1997, AMT, (MBIA Insured),
5.750% 07/01/39............. Aaa/AAA 7,798
--------
23,039
--------
MICHIGAN -- 1.9%
1,670 Byron Center, Michigan,
Public Schools GO, Series
1995, (MBIA Insured),
Prerefunded 05/01/05 @ 101,
5.970% 05/01/15............. Aaa/AAA 1,858
1,000 Detroit, Michigan, GO
Refunding, Series 1995B,
6.375% 04/01/07............. Baa1/A- 1,104
1,250 Kalamazoo, Michigan, City
School District, GO
Refunding, Series 1996,
(FGIC Insured),
5.650% 05/01/14............. Aaa/AAA 1,377
1,000 Lakeshore, Michigan, Public
Schools, GO, Series 1995,
(MBIA Insured),
5.750% 05/01/15............. Aaa/AAA 1,062
3,000 Michigan State, Comprehensive
Transportation Revenue
Refunding, Series 1996A,
(MBIA Insured),
5.250% 08/01/13............. Aaa/AAA 3,114
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MICHIGAN -- (CONTINUED)
$ 1,000 Michigan State, Environmental
Protection Program GO,
Series 1992,
6.250% 11/01/12............. Aa1/AA+ $ 1,154
2,000 Michigan State, Hospital
Finance Authority, Hospital
Revenue, (Holland Community
Hospital Project) Series
1996, (AMBAC Insured),
5.625% 01/01/28............. Aaa/AAA 2,094
1,000 Michigan State, Trunk Line
Revenue, Series 1994A,
(FGIC-TCRS Insured),
5.625% 11/15/14............. Aaa/AAA 1,068
--------
12,831
--------
MISSISSIPPI -- 1.7%
5,000 Adams County, Mississippi,
PCR, (International Paper
Company Project) Series
1994A,
5.500% 12/01/05............. A3/BBB+ 5,332
3,000 Lowndes County, Mississippi,
Solid Waste Disposal PCR
Refunding, (Weyerhaeuser
Company Project) Series
1992A,
6.800% 04/01/22............. A2/A 3,621
2,200 Mississippi, Hospital
Equipment and Facilities
Improvement Authority
Revenue Refunding, (North
Mississippi Health Services
Project) Series 1993-1,
(AMBAC Insured),
5.400% 05/15/04............. Aaa/AAA 2,333
--------
11,286
--------
MISSOURI -- 3.7%
1,000 Independence, Missouri,
School District, GO, Series
1991,
6.250% 03/01/11............. A3/NR 1,152
4,140 Joplin, Missouri, Industrial
Development Authority,
Revenue, (Catholic Health
Initiatives Project) Series
1997A,
5.125% 12/01/15............. Aa2/AA 4,145
1,000 Missouri State, Environmental
Improvement and Energy
Resource Authority, State
Revolving Fund, Water PCR,
(Kansas City Project) Series
1996A,
5.750% 01/01/16............. Aa1/NR 1,056
6,000 Missouri State, Health and
Educational Facilities
Authority, Educational
Facilities Revenue,
(Washington University
Project) Series 1998A,
5.000% 11/15/37............. Aa1/AA+ 5,781
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE> 113
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MISSOURI -- (CONTINUED)
$ 4,000 Missouri State, Health and
Educational Facilities
Authority, Revenue, (BJC
Health System Project)
Series 1998,
5.000% 05/15/38............. Aa2/AA $ 3,777
1,525 Missouri State, Housing
Development Commission,
Single-Family Mortgage
Revenue, (Homeowner Loan
Project) Series 1995A, AMT,
(GNMA/FHA/ VA/RECD Insured),
6.100% 09/01/14............. NR/AAA 1,611
1,625 Missouri State, Water
Pollution Control GO, Series
1995A,
5.600% 04/01/15............. Aaa/AAA 1,730
3,500 Sikeston, Missouri,
Electrical Revenue
Refunding, Series 1992,
(MBIA Insured),
6.100% 06/01/07............. Aaa/AAA 3,937
2,000 University of Missouri,
Health Facilities Revenue,
(University of Missouri
Health Systems Project)
Series 1996A, (AMBAC
Insured),
5.500% 11/01/16............. Aaa/AAA 2,075
--------
25,264
--------
MONTANA -- 2.4%
8,000 Forsyth, Montana, PCR
Refunding, (Portland General
Electric Company Project)
Series 1998A, Mandatory Put
05/01/03 @ 100,
4.600% 05/01/33............. A3/A- 8,103
8,000 Lewis and Clark County,
Montana, Environmental
Facilities Revenue, (Asarco,
Inc. Project) Series 1998,
AMT,
5.850% 10/01/33............. Baa3/BBB- 7,932
--------
16,035
--------
NEVADA -- 0.7%
1,400 Clark County, Nevada,
Transportation Improvement
GO Refunding, Series 1994A,
(MBIA Insured), Prerefunded
06/01/04 @ 101,
6.000% 06/01/12............. Aaa/AAA 1,546
1,000 Las Vegas and Clark County,
Nevada, Library District,
GO, Series 1993, (FGIC
Insured),
6.000% 02/01/12............. Aaa/AAA 1,073
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NEVADA -- (CONTINUED)
$ 2,000 Nevada State, Municipal
Board, GO, (Bank Project
Number 40 41) Series 1993A,
6.375% 12/01/17............. NR/AA $ 2,148
--------
4,767
--------
NEW HAMPSHIRE -- 0.4%
2,350 New Hampshire State, Higher
Education and Health
Facilities Authority
Revenue, (University Systems
of New Hampshire Project)
Series 1992, (MBIA Insured),
5.750% 07/01/24............. Aaa/AAA 2,442
--------
NEW JERSEY -- 1.2%
1,080 New Jersey State, Highway
Authority, Garden State
Parkway Generated Revenue,
Series 1971,
6.500% 01/01/11............. Aaa/AAA 1,205
3,000 New Jersey State,
Transportation Trust Fund
Authority, Revenue
Refunding, (Transportation
Systems Project) Series
1995B, (MBIA Insured),
5.000% 06/15/04............. Aaa/AAA 3,154
3,000 New Jersey, Health Care
Facilities, Financing
Authority Revenue,
(Riverwood Center Inc.
Project) Series 1991A, (FSA
Insured), Prerefunded
07/01/01 @ 102,
9.900% 07/01/21............. Aaa/AAA 3,516
--------
7,875
--------
NEW MEXICO -- 0.5%
1,985 New Mexico, Mortgage Finance
Authority, Single-Family
Mortgage Revenue, Series
1997C-2, AMT,
(GNMA/FNMA/FHLMC COLL),
6.050% 07/01/28............. Aaa/NR 2,088
1,000 Santa Fe, New Mexico, Gross
Receipts Tax Improvement
Revenue Refunding, Series
1997A, (AMBAC Insured),
5.000% 06/01/07............. Aaa/AAA 1,051
--------
3,139
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE> 114
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- 2.8%
$ 2,000 Municipal Assistance
Corporation for New York
City, New York, Revenue,
Series 1996E,
5.200% 07/01/08............. Aa2/AA $ 2,120
5,000 Municipal Assistance
Corporation for New York
City, New York, Revenue,
Series 1997J,
5.500% 07/01/02............. Aa2/AA 5,270
2,000 New York City, New York,
Municipal Water Finance
Authority, Water and Sewer
Systems Revenue, Series
1997B,
5.750% 06/15/29............. A1/A 2,146
1,000 New York State, Dormitory
Authority, Revenue,
(Canisius College Project)
Series 1995,
5.300% 07/01/08............. Aaa/AAA 1,065
2,000 New York State, Energy
Research and Development
Authority, Facilities
Revenue Refunding,
(Consolidated Edison Company
Project) Series 1995A,
6.100% 08/15/20............. A1/A+ 2,172
3,000 New York State, Local
Government Assistance
Corporation, Revenue, Series
1991D, Prerefunded 04/01/02
@ 102,
6.750% 04/01/21............. Aaa/AAA 3,313
3,000 New York State, Local
Government Assistance
Corporation, Revenue, Series
1995A,
6.000% 04/01/16............. A3/A+ 3,277
--------
19,363
--------
NORTH CAROLINA -- 3.2%
9,675 North Carolina State, Highway
GO, Series 1997A,
4.500% 05/01/07............. Aaa/AAA 9,900
1,950 North Carolina, Housing
Finance Agency, Multi-
Family Housing Revenue
Refunding, Series 1992B,
(FHA COLL),
6.900% 07/01/24............. Aa2/AA 2,093
2,605 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue
Refunding, (Novant Health,
Inc. Project) Series 1998A,
(MBIA Insured),
5.000% 10/01/08............. Aaa/AAA 2,727
2,500 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue,
(Carolina Medicorp, Inc.
Project) Series 1996,
5.250% 05/01/26............. Aa3/AA 2,471
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$ 2,000 University of North Carolina,
Chapel Hill, University
Revenue Refunding, Series
1996,
5.000% 02/15/29............. Aa3/AA $ 1,934
2,400 Wake County, North Carolina,
GO Refunding, Series 1996,
4.500% 03/01/08............. Aaa/AAA 2,449
--------
21,574
--------
OHIO -- 0.9%
1,000 Dayton, Ohio, Special
Facilities Revenue
Refunding, (Air Freight
Corporation Project) Series
1993F,
6.050% 10/01/09............. NR/BBB 1,076
1,000 Lucas County, Ohio, Hospital
Revenue, (Flower Hospital
Project) Series 1993,
Prerefunded 12/01/04 @ 101,
6.125% 12/01/13............. NR/NR 1,111
4,000 Ohio State, Highway Capital
Improvements GO, Series
1997B,
5.000% 05/01/07............. Aa1/AAA 4,231
--------
6,418
--------
OKLAHOMA -- 0.9%
3,270 Oklahoma State, Industrial
Authority, Hospital Revenue,
(Deaconess Health Care
Project) Series 1997A,
5.750% 10/01/17............. Baa2/BBB 3,301
3,000 Oklahoma, Development Finance
Authority, Revenue
Refunding, (Hillcrest
Healthcare Center Inc.
Project) Series 1999A,
5.000% 08/15/08............. Baa2/BBB+ 3,004
--------
6,305
--------
OREGON -- 0.8%
2,000 Chemeketa, Oregon, Community
College District, GO, Series
1996, (FGIC Insured),
Prerefunded 06/01/06 @ 100,
5.800% 06/01/12............. Aaa/AAA 2,212
2,900 Portland, Oregon, Sewer
Systems Revenue, Series
1994A, Prerefunded 06/01/04
@ 101,
6.250% 06/01/15............. A1/A+ 3,226
--------
5,438
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE> 115
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PENNSYLVANIA -- 3.0%
$ 3,000 Beaver County, Pennsylvania,
Industrial Development
Authority, PCR Refunding,
(Pennsylvania Power and
Light Company - Beaver
Valley Project) Series 1995,
(AMBAC Insured),
6.000% 09/01/28............. Aaa/AAA $ 3,264
3,480 Butler, Pennsylvania, Area
School District, State Aid
Withholding GO, Series 1997,
(FGIC Insured), Prerefunded
11/15/07 @ 44.73,
5.270%+ 11/15/21............ Aaa/NR 1,071
2,000 Lehigh County, Pennsylvania,
Industrial Development
Authority, PCR Refunding,
(Pennsylvania Power and
Light Company Project)
Series 1992A, (MBIA
Insured),
6.400% 11/01/21............. Aaa/AAA 2,190
1,000 Monroeville, Pennsylvania,
Hospital Authority, Hospital
Revenue Refunding, (Forbes
Health Systems - Allegheny
University Medical Centers
Project) Series 1995,
5.750% 10/01/05............. Ba3/B 961
1,250 Pennsylvania State,
Industrial Development
Authority, Economic
Development Revenue, Series
1991A, Prerefunded 07/01/01
@ 102,
7.000% 01/01/11............. NR/AAA 1,365
1,000 Philadelphia, Pennsylvania,
Gas Works Revenue Refunding,
Series 1993-14,
6.250% 07/01/08............. Baa2/BBB 1,086
1,725 Philadelphia, Pennsylvania,
Hospital and Higher
Education Facilities
Authority, Hospital Revenue,
(Frankford Hospital Project)
Series 1993A,
6.000% 06/01/14............. A3/NR 1,885
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
PENNSYLVANIA -- (CONTINUED)
$ 3,125 Philadelphia, Pennsylvania,
Hospital and Higher
Education Facilities
Authority, Hospital Revenue,
(Frankford Hospital Project)
Series 1993A,
6.000% 06/01/23............. A3/NR $ 3,416
4,800 Philadelphia, Pennsylvania,
Industrial Development
Authority, IDR Refunding,
(Ashland Oil Inc. Project)
Series 1993,
5.700% 06/01/05............. Baa1/NR 5,050
--------
20,288
--------
RHODE ISLAND -- 0.4%
2,845 Rhode Island State,
Consolidated Capital
Development Loan GO, Series
1996A, (MBIA Insured),
5.600% 08/01/10............. Aaa/AAA 3,055
--------
SOUTH CAROLINA -- 3.5%
8,000 Florence County, South
Carolina, Hospital Revenue,
(McLeod Regional Hospital
Center Project) Series
1998A, (MBIA Insured),
5.000% 11/01/18............. Aaa/AAA 7,873
4,000 Georgetown County, South
Carolina, PCR Refunding,
(International Paper
Company) Series 1999A,
5.125% 02/01/12............. A3/BBB+ 4,092
1,500 Greenville, South Carolina,
Water Utility Improvement
Waterworks Revenue, Water
Utility Improvements, Series
1997,
5.500% 02/01/22............. Aa1/AA 1,548
2,000 South Carolina, State Housing
Finance and Development
Authority, Revenue,
(Homeownership Mortgage
Purchase Project) Series
1994A,
6.375% 07/01/16............. Aa/AA 2,131
2,000 Spartanburg County, South
Carolina, Solid Waste
Disposal Facilities Revenue,
(BMW U.S. Capital
Corporation Project) Series
1994, AMT, (GTY AGMT),
7.550% 11/01/24............. NR/NR 2,266
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 116
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 6,035 York County, South Carolina,
IDR, Exempt Facility,
(Hoechst Celanese
Corporation Project) Series
1994, AMT,
5.700% 01/01/24............. A2/A+ $ 6,144
--------
24,054
--------
TENNESSEE -- 2.1%
2,500 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General Motors
Corporation - Saturn
Corporation Project) Series
1994,
6.500% 09/01/24............. A3/A 2,745
2,750 McMinn County, Tennessee,
Industrial Development
Board, Recycling Facilities
Revenue, (Bowater Inc.
Project) Series 1992, AMT,
7.400% 12/01/22............. Baa1/BBB 3,032
1,000 Memphis, Tennessee, GO
Refunding, Series 1996,
5.200% 11/01/10............. Aa2/AA 1,042
2,735 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding, (Federal
Express Corporation Project)
Series 1992, AMT,
6.750% 09/01/12............. Baa2/BBB 2,978
2,500 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water and
Sewer Revenue Refunding,
Series 1993, (FGIC Insured),
5.200% 01/01/13............. Aaa/AAA 2,628
2,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water and
Sewer Systems Revenue
Refunding, Series 1996,
(MBIA Insured),
5.500% 01/01/14............. Aaa/AAA 2,114
--------
14,539
--------
TEXAS -- 11.9%
4,000 Alliance Airport Authority
Inc., Texas, Special
Facilities Revenue,
(American
Corporation - American
Airlines Inc. Project)
Series 1991, AMT,
7.000% 12/01/11............. Baa2/BBB- 4,696
2,000 Arlington Texas, Independent
School District, GO, Series
1991, (PSFG Insured),
6.500% 08/15/03............. Aaa/NR 2,210
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 2,470 Beaumont Texas, Independent
School District, GO, Series
1996, (PSFG Insured),
5.000% 02/15/17............. Aaa/AAA $ 2,461
1,540 Bexar, Texas, Metropolitan
Water District, Waterworks
Revenue, Series 1995, (MBIA
Insured), Prerefunded
05/01/05 @ 102,
6.000% 05/01/15............. Aaa/AAA 1,729
2,070 Bexar, Texas, Metropolitan
Water District, Waterworks
Revenue, Unrefunded Balance,
Series 1995, (MBIA Insured),
6.000% 05/01/15............. Aaa/AAA 2,267
1,000 Brazos River Authority,
Texas, Revenue Refunding,
(Houston Light and Power
Company Project) Series
1992B, (MBIA Insured),
6.375% 04/01/12............. Aaa/AAA 1,092
2,575 Carrollton, Texas, Farmers
Branch Independent School
District, GO, Series 1996,
(PSFG Insured),
5.700% 02/15/17............. Aaa/AAA 2,705
1,275 Cypress-Fairbanks, Texas,
Independent School District,
GO, Series 1995, (PSFG
Insured), Prerefunded
02/15/05 @ 100,
5.750% 02/15/16............. Aaa/AAA 1,391
4,805 Cypress-Fairbanks, Texas,
Independent School District,
GO, Unrefunded Balance,
Series 1993A, (PSFG
Insured),
5.500% 02/15/11............. Aaa/AAA 5,035
1,750 Dallas County, Texas, GO,
Series 1996,
5.250% 08/15/16............. Aaa/AAA 1,796
1,000 Dallas, Texas, Independent
School District, GO
Refunding, Series 1995,
(PSFG Insured),
5.700% 08/15/12............. Aaa/AAA 1,074
1,075 Denton, Texas, Utility
Systems Revenue Refunding,
Series 1996A, (MBIA
Insured),
5.700% 12/01/10............. Aaa/AAA 1,157
1,000 Harris County, Texas, GO
Revenue Refunding, (Toll
Road Project) Sub Lien,
Series 1991,
6.750% 08/01/14............. Aa2/AA 1,083
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 117
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 4,000 Harris County, Texas, Health
Facilities Development
Authority, Hospital Revenue,
(Memorial Hospital Systems
Project) Series 1997A, (MBIA
Insured),
4.875% 06/01/05............. Aaa/AAA $ 4,145
5,000 Houston, Texas, Airport
Systems Revenue, Series
1998B, AMT, (FGIC Insured),
5.000% 07/01/16............. Aaa/AAA 4,948
4,000 Lower Neches Valley
Authority, Texas, Industrial
Development Corporation,
Revenue Refunding, (Mobil
Oil Refining Corporation
Project) Series 1997,
5.800% 05/01/22............. Aa2/AA 4,258
1,500 Lubbock, Texas, Health
Facilities Development
Corporation, Revenue, (St.
Joseph Health Systems
Project) Series 1993,
5.500% 07/01/14............. Aa/AA 1,546
5,000 Lubbock, Texas, Health
Facilities Development
Revenue, (St. Joseph Health
Systems Project) Series
1998,
5.000% 07/01/07............. Aa3/AA 5,170
2,000 North Central Texas, Health
Facilities Development
Corporation, Hospital
Revenue, (Presbyterian
Healthcare Project) Series
1991A,
6.625% 06/01/11............. Aaa/NR 2,309
13,500 North Central Texas, Health
Facilities Development
Corporation, Revenue
Refunding, (Baylor Health
Care System Project) Series
1998,
5.000% 05/15/17............. Aa2/AA 13,248
1,500 Plano, Texas, GO, Series
1991, (FGIC Insured),
Prerefunded 09/01/01 @ 100,
6.750% 09/01/11............. Aaa/AAA 1,610
2,000 Texas City, Texas, IDR,
Refunding, (Atlantic
Richfield Company Project)
Series 1990,
7.375% 10/01/20............. A2/A 2,578
5,000 Texas State, Department of
Housing and Community
Affairs, Single-Family
Mortgage Revenue, Series
1997A, AMT, Class 3,
(GNMA/FNMA COLL), (MBIA
Insured),
5.800% 09/01/29............. Aaa/AAA 5,170
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 2,000 Texas State, GO Refunding,
Series 1992A,
6.000% 10/01/08............. Aa2/AA $ 2,257
2,000 Texas, Guadalupe Blanco River
Authority, Revenue
Refunding, (Standard Oil
Company Project) Series
1983,
6.550% 05/01/13............. Aa3/AA+ 2,157
3,000 University of Texas,
Permanent University Fund
Revenue Refunding, Series
1992A,
6.250% 07/01/13............. Aaa/AAA 3,195
--------
81,287
--------
UTAH -- 2.1%
2,000 Emery County, Utah, PCR
Refunding, (Pacificorp
Project) Series 1993A,
(AMBAC Insured),
5.650% 11/01/23............. Aaa/AAA 2,068
8,300 Murray City, Utah, Hospital
Revenue Refunding, (IHC
Health Services, Inc.
Project) Series 1996, (MBIA
Insured),
5.000% 05/15/22............. Aaa/AAA 7,981
2,000 Provo, Utah, Electric
Revenue, Series 1980,
10.125% 04/01/15............ Aaa/AAA 2,811
1,300 Salt Lake City, Utah, Water
and Sewer Revenue, Series
1994, (AMBAC Insured),
Prerefunded 02/01/04 @ 100,
6.100% 02/01/14............. Aaa/AAA 1,424
--------
14,284
--------
VIRGINIA -- 3.0%
2,900 Bedford County, Virginia,
Industrial Development
Authority, Revenue
Refunding, (Georgia-Pacific
Corporation Project) Series
1998,
4.600% 08/01/04............. Baa2/NR 2,923
2,000 Covington-Allegheny County,
Virginia, IDR Refunding,
(Westvaco Corporation
Project) Series 1994,
6.650% 09/01/18............. A1/A 2,192
2,830 Fairfax County, Virginia,
Water Authority, Revenue,
Unrefunded Balance, Series
1992,
6.000% 04/01/22............. Aa2/AA 3,110
1,670 Fairfax County, Virginia,
Water Authority, Water
Revenue Refunding, Series
1992, Prerefunded 04/01/07 @
102,
6.000% 04/01/22............. Aaa/AAA 1,899
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE> 118
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 1,000 Norfolk, Virginia, Capital
Improvement GO, Series 1997,
(FGIC Insured),
5.375% 06/01/15............. Aaa/AAA $ 1,039
1,750 University of Virginia,
University General Revenue,
Series 1993A,
5.200% 06/01/12............. Aa1/AA+ 1,801
3,000 Virginia Commonwealth,
Transportation Board,
Transportation Program
Revenue, (Oak Grove
Connector Project ) Series
1997A,
5.250% 05/15/22............. Aa2/AA 3,016
3,000 Virginia State, GO Refunding,
Series 1996,
5.000% 06/01/10............. Aaa/AAA 3,108
1,500 Virginia State, Public School
Authority, Special
Obligation Revenue, Series
1993,
5.250% 07/15/09............. Aaa/AAA 1,601
--------
20,689
--------
WASHINGTON -- 8.0%
5,000 Chelan County, Washington,
Development Corporation PCR
Refunding, (Alcoa, Inc.
Project) Series 1995,
5.850% 12/01/31............. A1/A+ 5,346
2,310 Chelan County, Washington,
Public Utilities District
Division III, Revenue,
Series 1997A, AMT, Mandatory
Put 07/01/09 @ 100,
5.600% 07/01/32............. Aa3/AA 2,380
2,480 Clark County, Washington,
Sewer Revenue, Series 1996,
(MBIA Insured),
5.800% 12/01/11............. Aaa/AAA 2,699
1,035 King County, Washington,
Library Systems, GO, Series
1992,
6.150% 12/01/10............. Aa/AA 1,146
2,000 King County, Washington,
School District No. 415, GO,
Series 1996, (FSA Insured),
5.800% 06/01/13............. Aaa/AAA 2,170
3,000 King County, Washington,
Sewer GO Refunding, Series
1996C,
5.250% 01/01/17............. Aa1/AA+ 3,031
7,150 Pierce County, Washington,
Economic Development
Revenue, (Occidental
Petroleum Corporation
Project) Series 1993, AMT,
5.800% 09/01/29............. Baa2/BBB 7,210
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
WASHINGTON -- (CONTINUED)
$ 2,500 Public Industrial
Corporation, Port
Camas - Washougal,
Washington, PCR Refunding,
(James River Corporation of
Virginia Project) Series
1993,
6.700% 04/01/23............. NR/BBB- $ 2,643
2,000 Seattle, Washington, GO,
Series 1996A,
5.625% 01/15/10............. Aa1/AA+ 2,129
2,000 Seattle, Washington,
Municipal Light and Power
Revenue, Series 1994,
Prerefunded 07/01/04 @ 102,
6.625% 07/01/16............. Aa/AA 2,283
1,400 Seattle, Washington, Water
Systems Revenue Refunding,
Series 1993,
5.500% 06/01/18............. Aa2/AA 1,435
3,500 Washington State, GO
Refunding, Series 1991R-92A,
6.500% 09/01/04............. Aa1/AA+ 3,748
5,000 Washington State, GO, Series
1990A,
6.750% 02/01/15............. Aa1/AA+ 6,066
3,000 Washington State, GO, Series
1992-93A,
5.750% 10/01/12............. Aa1/AA+ 3,331
5,000 Washington State, Public
Power Supply System Revenue
Refunding, Series 1996A,
(MBIA Insured),
5.750% 07/01/11............. Aaa/AAA 5,400
3,000 Washington State, Public
Power Supply Systems Revenue
Refunding, Series 1993B,
(FSA Insured),
5.400% 07/01/05............. Aaa/AAA 3,213
--------
54,230
--------
WEST VIRGINIA -- 0.7%
1,450 Jefferson County, West
Virginia, Board of
Education, GO, Series 1989,
(FGIC Insured),
6.850% 07/01/07............. Aaa/AAA 1,707
1,560 Jefferson County, West
Virginia, Board of
Education, GO, Series 1989,
(FGIC Insured),
6.850% 07/01/08............. Aaa/AAA 1,861
1,000 West Virginia University,
State University Systems
Revenue, (Marshall
University Library) Series
1996, (AMBAC Insured),
5.750% 04/01/16............. Aaa/AAA 1,064
--------
4,632
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
114
<PAGE> 119
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WISCONSIN -- 0.2%
$ 1,000 Wisconsin State, GO
Refunding, Series 1993-1,
5.800% 11/01/08............. Aa2/AA $ 1,117
--------
WYOMING -- 0.4%
2,300 Campbell County, Wyoming,
School District Number 001
Gillette, GO, Series 1996,
(SCH BD GTY),
5.550% 06/01/06............. Aaa/AAA 2,486
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost: $611,823)......................... 659,301
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.2%
(Cost $14,765)
14,765 AIM Tax-Exempt Fund........................ 14,765
--------
TOTAL INVESTMENTS
(Cost $626,588*).................... 99.1% 674,066
--------
OTHER ASSETS AND
LIABILITIES (NET)................... 0.9%
Cash....................................... $ 1
Receivable for Fund shares sold............ 829
Interest receivable........................ 10,437
Prepaid expenses........................... 9
Payable for Fund shares redeemed........... (1,968)
Investment advisory fee payable............ (209)
Administration fee payable................. (85)
Shareholder servicing and distribution fees (34)
payable...................................
Distributions payable...................... (2,692)
Accrued Trustees' fees and expenses........ (13)
Accrued expenses and other liabilities..... (127)
--------
TOTAL OTHER ASSETS AND 6,148
LIABILITIES (NET).........................
--------
NET ASSETS.......................... 100.0% $680,214
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 602
Accumulated net realized gain on 784
investments sold..........................
Net unrealized appreciation of 47,478
investments...............................
Paid-in capital............................ 631,350
--------
NET ASSETS................................. $680,214
========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
- ---------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($635,628,991/55,388,457
shares outstanding)....................... $11.48
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($28,625,083/2,494,274 shares
outstanding).............................. $11.48
------
------
Maximum sales charge....................... 4.75%
Maximum offering price per share........... $12.05
INVESTOR B SHARES:
Net asset value and offering price per
share** ($13,810,148/1,203,412 shares
outstanding).............................. $11.48
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,149,321/187,289 shares
outstanding).............................. $11.48
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $47,891 and gross
depreciation of $413 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $626,588.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Municipal Income Fund had the following insurance concentration greater
than 10% at March 31, 1999 (as a percentage of net assets):
MBIA 16.89%
Nations Municipal Income Fund had the following industry concentration greater
than 10% at March 31, 1999 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 24.61%
Hospital Revenue 11.48%
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE> 120
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.7%
FLORIDA -- 94.6%
$ 2,000 Alachua County, Florida,
Health Facilities Authority,
Revenue, (Shands Hospital at
the University of Florida
Project) Series 1992, (MBIA
Insured),
6.100% 12/01/05.............. Aaa/AAA $ 2,151
3,375 Bay County, Florida, PCR
Refunding, (International
Paper Company Project) Series
1998A,
5.100% 09/01/12.............. A3/BBB+ 3,430
1,000 Bay Medical Center, Florida,
Hospital Revenue Refunding,
(Bay Medical Center Project)
Series 1996, (AMBAC Insured),
5.000% 10/01/05.............. Aaa/AAA 1,054
2,000 Bay Medical Center, Florida,
Hospital Revenue Refunding,
(Bay Medical Center Project)
Series 1996, (AMBAC Insured),
5.450% 10/01/12.............. Aaa/AAA 2,124
2,000 Boca Raton, Florida, Water and
Sewer Revenue Refunding,
Series 1992,
5.600% 10/01/04.............. Aa/AA- 2,128
1,000 Brevard County, Florida,
Health Facilities Authority,
Revenue Refunding, (Wuesthoff
Memorial Hospital Project)
Series 1996, (MBIA Insured),
6.250% 04/01/06.............. Aaa/AAA 1,125
1,000 Broward County, Florida, Gas
Tax Revenue, Series 1991,
Prerefunded 09/01/01 @ 101,
6.400% 09/01/03.............. A1/AA- 1,074
2,000 Broward County, Florida, GO
Refunding, Series 1992C,
5.600% 01/01/01.............. Aa2/AA 2,072
3,000 Broward County, Florida, GO
Refunding, Series 1992C,
6.200% 01/01/07.............. Aa2/AA 3,234
2,000 Broward County, Florida,
School District, GO
Refunding, Series 1992,
6.000% 02/15/07.............. A1/AA- 2,150
2,000 Broward County, Florida, Solid
Waste Systems Revenue, Series
1993A, (MBIA Insured),
5.500% 07/01/04.............. Aaa/AAA 2,151
1,000 Citrus County, Florida, PCR
Refunding, (Crystal River
Power Plant - Florida Power
Corporation Project) Series
1992B,
6.350% 02/01/22.............. A1/A+ 1,082
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$ 3,000 Clearwater Florida, Water and
Sewer Authority, Revenue,
Series 1993, (AMBAC Insured),
5.000% 12/01/02.............. Aaa/AAA $ 3,137
2,275 Clearwater, Florida, Water and
Sewer Authority, Revenue
Refunding, Series 1998, (FGIC
Insured),
4.910%+ 12/01/11............. Aaa/AAA 1,231
1,000 Clearwater, Florida, Water and
Sewer Authority, Revenue
Refunding, Series 1998, (FGIC
Insured),
5.060%+ 12/01/13............. Aaa/AAA 480
1,000 Collier County, Florida, Water
and Sewer District Revenue,
Series 1992, (FGIC Insured),
6.375% 07/01/10.............. Aaa/AAA 1,100
1,650 Dade County, Florida School
District, GO Refunding,
Series 1993, (AMBAC Insured),
5.000% 07/15/01.............. Aaa/AAA 1,704
1,000 Dade County, Florida, Aviation
Facility Revenue Refunding,
Series 1994B, AMT, (AMBAC
Insured),
6.300% 10/01/05.............. Aaa/AAA 1,127
3,000 Dade County, Florida, Water
and Sewer Systems Revenue
Refunding, Series 1993, (FGIC
Insured),
5.000% 10/01/00.............. Aaa/AAA 3,075
2,000 Delray Beach, Florida, Water
and Sewer Revenue Refunding,
Series 1993A, (AMBAC
Insured),
5.000% 10/01/02.............. Aaa/AAA 2,087
1,000 Delray Beach, Florida, Water
and Sewer Revenue Refunding,
Series 1993A, (AMBAC
Insured),
5.000% 10/01/03.............. Aaa/AAA 1,051
1,565 Dunes, Florida, Community
Development District, Revenue
Refunding, (Intracoastal
Waterway Bridge) Series 1993,
5.300% 10/01/03.............. NR/BBB 1,636
1,900 Dunes, Florida, Community
Development District, Revenue
Refunding, (Intracoastal
Waterway Bridge) Series 1993,
5.400% 10/01/04.............. NR/BBB 2,003
1,890 Duval County, Florida, Housing
Finance Authority, Multi-
Family Mortgage Revenue
Refunding, (The Cove Project)
Series 1992,
6.100% 10/01/02.............. NR/AAA 1,982
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
116
<PAGE> 121
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 7,135 Escambia County, Florida,
Health Facilities Revenue,
(Charity Obligation Group
Project) Series 1998C,
5.000% 11/01/18.............. Aa2/AA+ $ 7,003
3,600 Escambia County, Florida, PCR,
(Champion International
Corporation Project) Series
1996, AMT,
6.400% 09/01/30.............. Baa1/NR 3,827
1,700 Escambia County, Florida,
Utilities Authority Systems
Revenue, Series 1996, (FGIC
Insured),
5.625% 01/01/21.............. Aaa/AAA 1,779
1,000 Florida State Division Bond,
Financial Department of
General Services Revenue
Refunding, Florida Facilities
Pool, Series 1993, (AMBAC
Insured),
4.800% 09/01/01.............. Aaa/AAA 1,030
1,500 Florida State, Board of
Education, Capital Outlay GO,
Unrefunded Balance, Series
1989A,
7.250% 06/01/23.............. Aa2/AA+ 1,589
1,450 Florida State, Board of
Education, Public Education
Capital Outlay GO Refunding,
Series 1992,
5.500% 06/01/01.............. Aa2/AA+ 1,511
1,000 Florida State, Board of
Education, Public Education
Capital Outlay GO Refunding,
Series 1993A,
5.000% 06/01/08.............. Aa2/AA+ 1,055
1,000 Florida State, Board of
Education, Public Education
Capital Outlay GO, Series
1992C, Prerefunded 06/01/02 @
101,
6.500% 06/01/11.............. Aaa/AA+ 1,092
4,000 Florida State, Board of
Education, Public Education
Capital Outlay GO, Series
1993D,
5.200% 06/01/11.............. Aa2/AA+ 4,176
3,030 Florida State, Board of
Regents, University System
Improvement Revenue
Refunding, Series 1997A,
5.000% 07/01/16.............. Aa3/AA- 3,050
1,500 Florida State, Department of
Transportation, GO, (Right of
Way Bridge Project) Series
1996,
5.375% 07/01/26.............. Aa2/AA+ 1,537
70 Florida State, Department of
Transportation, GO, (Right of
Way Bridge Project) Series
1997B,
5.000% 07/01/27.............. Aa2/AA+ 69
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$ 3,000 Florida State, Division of
Bond Financing, Department of
General Services Revenue,
(Department of Natural
Resources - Preservation 2000
Project) Series 1991A, (AMBAC
Insured),
6.250% 07/01/01.............. Aaa/AAA $ 3,176
2,000 Florida State, Division of
Bond Financing, Department of
General Services Revenue,
(Department of Natural
Resources - Preservation 2000
Project) Series 1992A, (AMBAC
Insured),
5.800% 07/01/01.............. Aaa/AAA 2,099
1,000 Florida State, Division of
Bond Financing, Department of
General Services Revenue,
(Department of Natural
Resources - Preservation 2000
Project) Series 1992A, (AMBAC
Insured), Prerefunded
07/01/02
@ 101,
6.250% 07/01/06.............. Aaa/AAA 1,087
1,805 Florida State, Jacksonville
Transportation Authority, GO
Refunding, Senior Lien,
Series 1997,
6.000% 07/01/05.............. Aa/AA+ 2,001
5,000 Florida, Gas Utilities
Revenue, (Gas Project Number
One) Series 1998, (FSA
Insured),
5.000% 12/01/08.............. Aaa/AAA 5,277
2,000 Florida, Greater Orlando
Aviation Authority, Revenue
Refunding, Series 1992B,
(FGIC Insured),
6.200% 10/01/03.............. Aaa/AAA 2,193
4,000 Florida, Housing Finance
Agency, Multi-Family Housing
Revenue Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put 12/01/03 @ 100,
7.000% 12/01/24.............. NR/BBB+ 4,384
1,000 Florida, Housing Finance
Agency, Multi-Family Housing
Revenue Refunding, (United
Dominion Realty
Trust - Andover Project)
Series 1996E, AMT, Mandatory
Put 05/01/08
@ 100,
6.350% 05/01/26.............. NR/BBB+ 1,079
1,160 Florida, Housing Finance
Agency, Revenue Refunding,
(The Vineyards Project)
Series 1995H,
5.875% 11/01/05.............. NR/BBB+ 1,220
1,000 Florida, Housing Finance
Agency, Revenue Refunding,
(The Vineyards Project)
Series 1995H,
6.400% 11/01/15.............. NR/BBB+ 1,072
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE> 122
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 2,440 Florida, Housing Finance
Corporation, Revenue
(Homeowner Mortgage Project)
Series 1998-1, (MBIA
Insured),
4.950% 07/01/11.............. Aaa/AAA $ 2,454
3,000 Florida, Orlando and Orange
County Expressway Authority,
Revenue Refunding, Senior
Lien, Series 1993, (AMBAC
Insured),
5.000% 07/01/03.............. Aaa/AAA 3,145
1,000 Florida, Ports Financing
Commission, Revenue, (State
Transportation Trust Fund
Project) Series 1996, AMT,
(MBIA Insured),
5.375% 06/01/16.............. Aaa/AAA 1,032
1,000 Gainesville, Florida, Utility
Systems Revenue, Series
1996A,
5.750% 10/01/07.............. Aa3/AA 1,113
3,200 Greater Orlando, Aviation
Authority, Revenue Refunding,
Series 1992D, (AMBAC
Insured),
5.450% 10/01/01.............. Aaa/AAA 3,348
2,000 Greater Orlando, Aviation
Authority, Revenue Refunding,
Series 1992D, (AMBAC
Insured),
5.600% 10/01/02.............. Aaa/AAA 2,126
1,375 Hialeah, Florida, Capital
Improvement Revenue, Series
1993,
5.500% 10/01/18.............. Baa1/NR 1,376
3,170 Hillsborough County, Florida,
Aviation Authority Revenue
Refunding, (Tampa
International Airport
Project) Series 1997A, AMT,
(AMBAC Insured),
5.750% 10/01/07.............. Aaa/AAA 3,481
1,000 Hillsborough County, Florida,
Capital Improvement Revenue
Refunding, (County Center
Project) Series 1996B, (MBIA
Insured),
5.000% 07/01/11.............. Aaa/AAA 1,030
2,640 Hillsborough County, Florida,
Environmentally Sensitive
Lands, Series 1992, (AMBAC
Insured),
6.250% 07/01/06.............. Aaa/AAA 2,893
3,500 Hillsborough County, Florida,
IDR Refunding, (Tampa
Electric Company Project)
Series 1992,
8.000% 05/01/22.............. Aa3/AA 3,981
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$ 1,500 Indian River County, Florida,
School District, GO
Refunding, Series 1993, (FSA
Insured),
5.000% 04/01/03.............. Aaa/AAA $ 1,568
1,800 Indian River County, Florida,
School District, GO
Refunding, Series 1993, (FSA
Insured),
5.000% 04/01/04.............. Aaa/AAA 1,890
1,750 Indian River County, Florida,
School District, GO
Refunding, Series 1993, (FSA
Insured),
5.100% 04/01/05.............. Aaa/AAA 1,850
1,000 Indian River County, Florida,
Water and Sewer Revenue
Refunding, Series 1993A,
(FGIC Insured),
5.200% 09/01/05.............. Aaa/AAA 1,067
1,000 Jacksonville Beach, Florida,
Utilities Revenue, Series
1991, (MBIA Insured),
Prerefunded 10/01/01 @ 102,
6.500% 10/01/12.............. Aaa/AAA 1,089
2,000 Jacksonville, Florida,
Electric Systems Authority,
Revenue Refunding, (St. Johns
River Project) Issue 2,
Series 1995-6C,
6.400% 10/01/00.............. Aa1/AA 2,090
1,000 Jacksonville, Florida,
Electric Systems Authority,
Revenue, Series 1993A,
5.200% 10/01/02.............. Aa2/AA 1,049
1,000 Jacksonville, Florida, Excise
Tax Revenue Refunding, Series
1995A, (FGIC Insured),
5.000% 10/01/09.............. Aaa/AAA 1,053
1,000 Jacksonville, Florida, Health
Facilities Authority,
Hospital Revenue Refunding,
(Daughters of Charity
Project) Series 1993A,
5.000% 11/15/15.............. Aa2/AA+ 992
1,375 Jacksonville, Florida, Health
Facilities Authority,
Hospital Revenue Refunding,
(St. Lukes Hospital
Association Project) Series
1991,
6.750% 11/15/02.............. NR/AA+ 1,497
4,200 Jacksonville, Florida, Health
Facilities Authority,
Hospital Revenue, Series
1997B,
5.400% 08/15/18.............. Aa2/AA+ 4,306
2,000 Lakeland, Florida, Electricity
and Water Revenue Refunding,
Series 1992,
5.625% 10/01/04.............. A1/AA- 2,169
1,000 Leon County, Florida, School
District, GO Refunding,
Series 1991,
6.200% 07/01/04.............. A1/A+ 1,052
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
118
<PAGE> 123
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 1,500 Miami Beach, Florida, GO
Refunding, Series 1993, (FGIC
Insured),
5.300% 09/01/03.............. Aaa/AAA $ 1,593
2,000 Miami, Florida, GO Refunding,
Series 1992, (FGIC Insured),
5.600% 12/01/03.............. Aaa/AAA 2,155
3,500 Miami-Dade County, Florida,
Aviation Revenue, AMT, Series
1998C, (MBIA Insured),
5.250% 10/01/15.............. Aaa/AAA 3,573
3,000 Miami-Dade County, Florida,
Aviation Revenue, Series
1998C, AMT, (MBIA Insured),
5.000% 10/01/23.............. Aaa/AAA 2,930
2,000 Miami-Dade County, Florida,
Aviation Revenue, Series
1998C, AMT, (MBIA Insured),
5.000% 10/01/28.............. Aaa/AAA 1,949
1,000 Naples, Florida, Water and
Sewer Revenue Refunding,
Series 1992, (FGIC Insured),
6.400% 09/01/07.............. Aaa/AAA 1,098
3,000 North Broward, Florida,
Hospital District Revenue
Refunding, Series 1992, (MBIA
Insured), Prerefunded
01/01/02
@ 102,
6.250% 01/01/06.............. Aaa/AAA 3,251
2,000 Orange County, Florida, Health
Facilities Authority,
Hospital Revenue, (Orlando
Regional Healthcare Project)
Series 1993A, (MBIA Insured),
5.400% 11/01/02.............. Aaa/AAA 2,112
2,000 Orange County, Florida, Health
Facilities Authority,
Hospital Revenue, (Orlando
Regional Healthcare Project)
Series 1996A, (MBIA Insured),
6.250% 10/01/16.............. Aaa/AAA 2,305
1,375 Orange County, Florida, Health
Facilities Authority, Revenue
Refunding, (Lakeside
Alternatives, Inc. Project)
Series 1995,
6.250% 07/01/05.............. NR/BBB 1,489
3,000 Orange County, Florida, Health
Facilities, Authority,
Hospital Revenue, (Orlando
Regional Healthcare Project)
Series 1993B, (MBIA Insured),
4.400% 10/01/02.............. Aaa/AAA 3,069
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$ 1,735 Orange County, Florida,
Housing Finance Authority,
Single-Family Mortgage
Revenue, Series 1997A, AMT,
(GNMA/FNMA),
5.900% 09/01/19.............. NR/AAA $ 1,835
2,000 Orlando and Orange County,
Florida, Expressway
Authority, Revenue, Junior
Lien, Series 1990, (FGIC
Insured),
6.500% 07/01/10.............. Aaa/AAA 2,364
2,425 Orlando, Florida, Greater
Orlando Aviation Authority,
Airport Facilities Revenue
Refunding, Series 1998, AMT,
(FGIC Insured),
5.250% 10/01/11.............. Aaa/AAA 2,541
3,000 Orlando, Florida, Utilities
Commission, Water and
Electric Revenue Refunding,
Series 1992,
5.600% 10/01/03.............. Aa1/AA 3,227
2,000 Orlando, Florida, Utilities
Commission, Water and
Electricity Revenue
Refunding, Series 1993B,
5.400% 10/01/08.............. Aa2/AA- 2,123
2,000 Palm Beach County, Florida, GO
Refunding, Series 1998
5.500% 12/01/11.............. Aa2/AA 2,179
1,250 Palm Beach County, Florida,
GO, Series 1991, Prerefunded
10/01/01 @ 102,
6.600% 10/01/11.............. NR/NR 1,360
1,750 Palm Beach County, Florida,
GO, Series 1994,
6.875% 12/01/03.............. Aa2/AA 1,980
1,300 Palm Beach County, Florida,
GO, Series 1994,
7.000% 12/01/04.............. Aa2/AA 1,502
1,000 Palm Beach County, Florida,
Health Facilities Authority,
Hospital Revenue, (Good
Samaritans Health System
Project) Series 1993,
6.100% 10/01/05.............. Aaa/A+ 1,102
4,400 Palm Beach County, Florida,
Housing Finance Authority,
Single Family Mortgage,
Revenue Refunding, Series
1999A, AMT, (GNMA/FNMA COLL),
4.850% 04/01/32.............. Aaa/NR 4,397
2,000 Palm Beach County, Florida,
School District, GO
Refunding, Series 1992,
(AMBAC Insured),
6.000% 08/01/06.............. Aaa/AAA 2,150
2,000 Palm Beach County, Florida,
Stadium Facilities Revenue,
Series 1996, (MBIA Insured),
5.250% 12/01/16.............. Aaa/AAA 2,064
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE> 124
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 1,250 Pembroke Pines, Florida,
Consolidated Utilities
Systems Revenue, Series 1992,
(FGIC Insured),
6.250% 09/01/07.............. Aaa/AAA $ 1,346
1,400 Pinellas County, Florida,
Health Facilities Authority,
Hospital Revenue, (Morton
Plant Hospital Association
Project) Series 1993, (MBIA
Insured),
4.900% 11/15/02.............. Aaa/AAA 1,456
1,000 Pinellas County, Florida, PCR
Refunding, (Anclote & Barton
Power Plants - Florida Power
Corporation Project) Series
1991,
7.200% 12/01/14.............. A1/A+ 1,085
2,000 Pinellas County, Florida,
Resource Recovery Revenue
Refunding, Series 1990A,
(MBIA Insured),
6.600% 10/01/00.............. Aaa/AAA 2,096
2,500 Pinellas County, Florida,
Resource Recovery Revenue
Refunding, Series 1990A,
(MBIA Insured),
6.800% 10/01/02.............. Aaa/AAA 2,667
1,690 Reedy Creek, Florida,
Improvement District,
Revenue, Unrefunded Balance,
Series 1991A,
6.400% 06/01/07.............. A1/A+ 1,792
1,010 Reedy Creek, Florida,
Improvement District, Series
1991A, Prerefunded 06/01/01 @
101,
6.400% 06/01/07.............. A1/A+ 1,078
1,200 Sarasota County, Florida, GO
Refunding, Series 1992, (FGIC
Insured),
6.100% 10/01/02.............. Aaa/AAA 1,291
1,650 Sarasota County, Florida,
Public Hospital Board,
Revenue Refunding, (Sarasota
Memorial Hospital Project)
Series 1997B, (MBIA Insured),
5.000% 10/01/07.............. Aaa/NR 1,738
1,750 Sarasota County, Florida,
Public Hospital Board,
Revenue Refunding, (Sarasota
Memorial Hospital Project)
Series 1998B, (MBIA Insured),
5.250% 07/01/11.............. Aaa/AAA 1,850
1,000 Sarasota, Florida, Water and
Sewer Utility Revenue
Refunding, Series 1992, (FGIC
Insured),
6.000% 10/01/02.............. Aaa/AAA 1,076
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$ 2,100 Seminole County, Florida,
School District, GO
Refunding, Series 1992, (MBIA
Insured),
5.900% 08/01/02.............. Aaa/AAA $ 2,246
850 St. Johns County, Florida,
Industrial Development
Authority, Revenue, (Flagler
Hospital, Inc. Project)
Series 1992,
5.700% 08/01/02.............. A2/A- 891
945 St. Johns County, Florida,
Industrial Development
Authority, Revenue, (Flagler
Hospital, Inc. Project)
Series 1992,
6.000% 08/01/08.............. A2/A- 1,005
2,000 St. Lucie County, Florida,
School District, GO
Refunding, Series 1992,
(AMBAC Insured),
6.000% 07/01/03.............. Aaa/AAA 2,171
1,000 St. Lucie County, Florida,
School District, GO, Series
1997, (FGIC Insured),
5.875% 02/01/07.............. Aaa/AAA 1,110
2,000 St. Petersburg, Florida,
Utility Tax Revenue
Refunding, Series 1992,
(AMBAC Insured),
6.000% 06/01/05.............. Aaa/AAA 2,161
1,000 Tallahassee, Florida, Health
Facilities Revenue Refunding,
(Tallahassee Memorial Medical
Center Project) Series 1992B,
(MBIA Insured),
5.750% 12/01/04.............. Aaa/AAA 1,080
1,000 Tallahassee, Florida, Health
Facilities Revenue Refunding,
(Tallahassee Memorial
Regional Medical Center
Project) Series 1992A, (MBIA
Insured),
5.750% 12/01/04.............. Aaa/AAA 1,080
2,750 Tampa Hillsborough County,
Florida, Expressway Authority
Revenue, Series 1997, (AMBAC
Insured),
5.000% 07/01/27.............. Aaa/AAA 2,720
1,000 Tampa, Florida, Capital
Improvement Authority,
Hospital Revenue, (H. Lee
Moffitt Project) Series A,
4.875% 07/01/13.............. A3/A 983
2,000 Tampa, Florida, Health Systems
Revenue, (Catholic Health
Project) Series 1998A-1,
(MBIA Insured),
4.875% 11/15/15.............. Aaa/AAA 1,970
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
120
<PAGE> 125
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$ 3,170 Tampa, Florida, Sports
Authority, Local Optional
Sales Tax Revenue, (Stadium
Project) Series 1997, (MBIA
Insured),
6.000% 01/01/07.............. Aaa/AAA $ 3,537
1,000 Tampa, Florida, Water and
Sewer Revenue, Series 1993A,
(FGIC Insured),
5.000% 10/01/02.............. Aaa/AAA 1,044
1,000 Tampa, Florida, Water and
Sewer Revenue, Series 1995,
(FGIC Insured),
5.125% 10/01/17.............. Aaa/AAA 1,014
1,025 Venice, Florida, Health
Facilities Revenue, (Venice
Hospital Inc. Project) Series
1994,
5.300% 12/01/02.............. Aaa/NR 1,078
1,000 Venice, Florida, Stormwater
and Drain Revenue, Series
1996, (AMBAC Insured),
5.600% 05/01/16.............. Aaa/AAA 1,055
--------
240,313
--------
PUERTO RICO -- 1.1%
1,650 Puerto Rico, Industrial
Medical and Environmental
Pollution Control Facilities
Finance Authority, Higher
Education Revenue Refunding,
(Catholic University of
Puerto Rico Project) Series
1993,
5.600% 12/01/07.............. NR/BBB- 1,750
1,000 Puerto Rico, Industrial
Tourist Educational Medical
and Environmental Control
Facilities Financing
Authority, Revenue, (Ryder
Memorial Hospital Project)
Series 1994A,
6.600% 05/01/14.............. NR/BBB 1,075
--------
2,825
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost: $231,597).......................... 243,138
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 4.5%
(Cost $11,296)
11,296 AIM Tax-Exempt Fund........................ 11,296
--------
TOTAL INVESTMENTS
(Cost $242,893*).................... 100.2% 254,434
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
OTHER ASSETS AND
LIABILITIES (NET)................... (0.2)%
Receivable for Fund shares sold............ $ 566
Interest receivable........................ 4,454
Prepaid expenses........................... 3
Payable for Fund shares redeemed........... (57)
Investment advisory fee payable............ (61)
Administration fee payable................. (31)
Shareholder servicing and distribution fees (15)
payable...................................
Distributions payable...................... (974)
Payable for investment securities (4,400)
purchased.................................
Accrued Trustees' fees and expenses........ (11)
Accrued expenses and other liabilities..... (89)
--------
TOTAL OTHER ASSETS AND LIABILITIES (NET)... (615)
--------
NET ASSETS.......................... 100.0% $253,819
========
NET ASSETS CONSIST OF:
Accumulated net realized loss on $ (520)
investments sold..........................
Net unrealized appreciation of 11,541
investments...............................
Paid-in capital............................ 242,798
--------
NET ASSETS................................. $253,819
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($234,529,746/21,736,333
shares outstanding)....................... $10.79
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($12,783,148/1,184,694 shares
outstanding).............................. $10.79
------
------
Maximum sales charge....................... 3.25%
Maximum offering price per share........... $11.15
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,089,556/471,695 shares
outstanding).............................. $10.79
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,416,148/131,229 shares
outstanding).............................. $10.79
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $11,698 and gross
depreciation of $157 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $242,893.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Florida Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
MBIA 20.49%
AMBAC 17.70%
FGIC 11.27%
Nations Florida Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Hospital Revenue 17.33%
Transportation Revenue 13.39%
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE> 126
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.3%
FLORIDA -- 84.3%
$ 940 Alachua County, Florida,
Health Facilities Authority,
Revenue Refunding, (Santa Fe
Healthcare Facilities, Inc.
Project) Series 1993,
6.000% 11/15/09.............. Baa1/AAA $ 1,022
1,000 Alachua County, Florida,
Health Facilities Authority,
Revenue, (Shands Teaching
Hospital/Clinic Project)
Series 1996A, (MBIA Insured),
5.000% 12/01/04.............. Aaa/AAA 1,054
1,000 Alachua County, Florida,
Public Improvement Revenue
Refunding, Series 1995, (FSA
Insured),
5.000% 08/01/14.............. Aaa/AAA 1,016
1,000 Bay County, Florida, PCR
Refunding, (International
Paper Company Project) Series
1998A,
5.100% 09/01/12.............. A3/BBB+ 1,016
2,550 Brevard County, Florida,
Health Facilities Authority,
Revenue, (Holmes Regional
Medical Center, Inc. Project)
Series 1996, (MBIA Insured),
5.625% 10/01/14.............. Aaa/AAA 2,712
1,000 Canaveral, Florida, Port
Authority, Port Improvement
Revenue Refunding, Series
1996B, (FGIC Insured),
5.700% 06/01/13.............. Aaa/AAA 1,072
2,250 Charlotte County, Florida,
Utility Revenue Refunding,
Series 1996A, (FGIC Insured),
5.625% 10/01/16.............. Aaa/AAA 2,397
1,000 Citrus County, Florida, PCR
Refunding, (Crystal River
Power Plant - Florida Power
Corporation Project) Series
1992B,
6.350% 02/01/22.............. A1/A+ 1,082
700 Collier County, Florida,
Health Facilities Authority,
Revenue Refunding, (Moorings,
Inc. Project) Series 1994,
6.250% 12/01/07.............. NR/BBB+ 766
700 Collier County, Florida,
Health Facilities Authority,
Revenue Refunding, (Moorings,
Inc. Project) Series 1994,
6.375% 12/01/08.............. NR/BBB+ 767
5,175 Collier County, Florida,
Health Facilities Authority,
Revenue Refunding, (Moorings,
Inc. Project) Series 1994,
7.000% 12/01/19.............. NR/BBB+ 5,731
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$2,500 Dade County, Florida, Aviation
Revenue, Series 1996A, AMT,
(MBIA Insured),
5.750% 10/01/12.............. Aaa/AAA $ 2,693
1,000 Dade County, Florida, School
District, GO, Series 1994A,
(MBIA Insured),
6.125% 06/01/14.............. Aaa/AAA 1,121
1,500 Dade County, Florida, Water
and Sewer System Revenue
Refunding, Series 1993, (FGIC
Insured),
5.000% 10/01/13.............. Aaa/AAA 1,522
4,000 Escambia County, Florida,
Health Facilities Revenue,
(Charity Obligation Group
Project) Series 1998C,
5.000% 11/01/28.............. Aa2/AA+ 3,880
1,000 Escambia County, Florida, PCR,
(Champion International
Corporation Project) Series
1994, AMT,
6.900% 08/01/22.............. Baa1/BBB 1,095
1,000 Escambia County, Florida, PCR,
(Champion International
Corporation Project) Series
1996, AMT,
6.400% 09/01/30.............. Baa1/NR 1,063
1,000 Florida State, Board of
Education, Capital Outlay GO,
Unrefunded Balance, Series
1989A,
7.250% 06/01/23.............. Aa2/AA+ 1,059
1,000 Florida State, Board of
Education, Public Education
Capital Outlay GO Refunding,
Series 1993A,
5.000% 06/01/08.............. Aa2/AA+ 1,055
2,500 Florida State, Board of
Education, Public Education
Capital Outlay GO, Series
1996A,
5.250% 06/01/16.............. Aa2/AA+ 2,565
3,000 Florida State, Board of
Education, Public Education
Capital Outlay GO, Series
1996A,
5.000% 06/01/18.............. Aa2/AA+ 2,982
1,000 Florida State, Department of
Transportation, GO, (Right of
Way Bridge Project) Series
1996,
5.375% 07/01/26.............. Aa2/AA+ 1,024
2,000 Florida State, Department of
Transportation, GO, (Right of
Way Bridge Project) Series
1997A,
5.000% 07/01/17.............. Aa2/AA+ 2,006
165 Florida State, Department of
Transportation, GO, (Right of
Way Bridge Project) Series
1997B,
5.000% 07/01/27.............. Aa2/AA+ 162
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE> 127
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000 Florida State, Jacksonville
Transportation GO Refunding,
Senior Lien, Series 1997,
5.000% 07/01/19.............. Aa/AA+ $ 990
1,500 Florida State, Municipal Power
Agency, Revenue Refunding,
(St. Lucie Project) Series
1992, (FGIC Insured),
5.250% 10/01/21.............. Aaa/AAA 1,518
1,000 Florida, Housing Finance
Agency, Multi-Family Housing
Revenue Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put 12/01/03 @ 100,
7.000% 12/01/24.............. NR/BBB+ 1,096
500 Florida, Housing Finance
Agency, Revenue Refunding,
(The Vineyards Project)
Series 1995H,
6.500% 11/01/25.............. NR/BBB+ 536
2,990 Florida, Housing Finance
Agency, Revenue, (Homeowner
Mortgage) Series 1997-2, AMT,
(MBIA Insured),
5.750% 07/01/14.............. Aaa/AAA 3,126
750 Florida, Housing Finance
Agency, Single-Family
Mortgage Revenue, Series
1994B, AMT, (GNMA/FNMA COLL),
6.550% 07/01/17.............. Aaa/AAA 798
1,770 Florida, Housing Finance
Corporation, Revenue
(Homeowner Mortgage Project)
Series 1998-1, (MBIA
Insured),
4.950% 01/01/11.............. Aaa/AAA 1,780
3,000 Gainesville, Florida, Utility
Systems Revenue, Series
1992B,
6.500% 10/01/11.............. Aa3/AA 3,559
2,000 Hillsborough County, Florida,
Aviation Authority Revenue
Refunding, (Tampa
International Airport
Project) Series 1997B, (AMBAC
Insured),
5.125% 10/01/17.............. Aaa/AAA 2,016
1,000 Hillsborough County, Florida,
IDR Refunding, (Tampa
Electric Company Project)
Series 1992,
8.000% 05/01/22.............. Aa3/AA 1,137
1,000 Hillsborough County, Florida,
Utilities Revenue Refunding,
Series 1993, (MBIA Insured),
5.500% 08/01/12.............. Aaa/AAA 1,062
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$1,500 Jacksonville, Florida, Health
Facilities Authority,
Hospital Revenue Refunding,
(Daughters of Charity
Project) Series 1993A,
5.000% 11/15/15.............. Aa2/AA+ $ 1,488
5,000 Jacksonville, Florida, Sales
Tax Revenue, (River City
Renaissance Project) Series
1995, (FGIC Insured),
5.650% 10/01/14.............. Aaa/AAA 5,323
5,000 Jacksonville, Florida, Sales
Tax Revenue, (River City
Renaissance Project) Series
1995, (FGIC Insured),
5.375% 10/01/18.............. Aaa/AAA 5,132
2,430 Leon County, Florida, Capital
Improvement Revenue, Series
1997, (AMBAC Insured),
5.250% 10/01/17.............. Aaa/AAA 2,501
3,500 Martin County, Florida,
Industrial Development
Authority, Revenue,
(Indiantown Cogeneration
Project) Series 1994A, AMT,
7.875% 12/15/25.............. Baa3/BBB- 3,640
2,500 Martin County, Florida,
Industrial Development
Authority, Revenue,
(Indiantown Cogeneration
Project) Series 1995B, AMT,
8.050% 12/15/25.............. Baa3/BBB- 2,600
2,620 Miami Beach, Florida, Water
and Sewer Revenue, Series
1995, (FSA Insured),
5.375% 09/01/15.............. Aaa/AAA 2,727
2,000 North Broward, Florida,
Hospital District, Revenue
Refunding, Series 1997, (MBIA
Insured),
5.250% 01/15/17.............. Aaa/AAA 2,034
5,000 Okaloosa County, Florida, Gas
Distribution Revenue
Refunding, Series 1994, (MBIA
Insured), Prerefunded
10/01/04 @ 102,
6.875% 10/01/19.............. Aaa/AAA 5,817
1,000 Orange County, Florida, Health
Facilities Authority,
Hospital Revenue, (Orlando
Regional Healthcare Project)
Series 1993B, (MBIA Insured),
5.000% 10/01/10.............. Aaa/AAA 1,025
4,520 Orange County, Florida, Health
Facilities Authority,
Hospital Revenue, (Orlando
Regional Healthcare Project)
Series 1996A, (MBIA Insured),
6.250% 10/01/16.............. Aaa/AAA 5,208
1,000 Orange County, Florida, Sales
Tax Revenue, Series 1993B,
5.375% 01/01/24.............. A1/A+ 1,015
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE> 128
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- (CONTINUED)
$1,000 Orange County, Florida,
Tourist Development Tax
Revenue, Series 1994B, (MBIA
Insured), Prerefunded
10/01/04 @ 102,
6.000% 10/01/14.............. Aaa/AAA $ 1,121
1,000 Orlando, Florida, Greater
Orlando Aviation Authority,
Airport Facilities Revenue
Refunding, Series 1997, AMT,
(FGIC Insured),
5.125% 10/01/12.............. Aaa/AAA 1,023
3,000 Orlando, Florida, Utilities
Commission, Water and
Electricity Revenue
Refunding, Series 1989D,
6.750% 10/01/17.............. Aa2/AA- 3,634
1,000 Osceola County, Florida,
Health Facilities Authority,
Revenue Refunding,
(Evangelical Lutheran Good
Samaritan Society Project)
Series 1994, (AMBAC Insured),
6.000% 05/01/10.............. Aaa/AAA 1,095
1,500 Palm Beach County, Florida,
Health Facilities Authority,
Hospital Revenue, (Good
Samaritans Health System
Project) Series 1993,
Prerefunded 10/01/05 @ 100,
6.200% 10/01/11.............. Aaa/A+ 1,660
1,000 Palm Beach County, Florida,
Housing Finance Authority,
Single Family Mortgage,
Revenue Refunding, Series
1999A, AMT, (GNMA/FNMA COLL),
4.850% 04/01/32.............. Aaa/NR 999
665 Palm Beach County, Florida,
Housing Finance Authority,
Single-Family Mortgage
Revenue, Series 1995A, AMT,
(GNMA/FNMA COLL),
6.500% 10/01/21.............. Aaa/NR 712
935 Palm Beach County, Florida,
Solid Waste Authority,
Revenue Refunding, Series
1997A, (AMBAC Insured),
6.000% 10/01/10.............. Aaa/AAA 1,069
5,065 Palm Beach County, Florida,
Solid Waste Authority,
Revenue, Unrefunded Balance,
Series 1997A, (AMBAC
Insured),
6.000% 10/01/10.............. Aaa/AAA 5,717
2,000 Pensacola, Florida, Airport
Revenue, Series 1997B, AMT,
(MBIA Insured),
5.625% 10/01/14.............. Aaa/AAA 2,128
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Polk County, Florida,
Industrial Development
Authority, Solid Waste
Disposal Facilities Revenue,
(Tampa Electric Company
Project) Series 1996, AMT,
5.850% 12/01/30.............. Aa2/A1+ $ 1,064
2,000 South Broward, Florida,
Hospital District, Revenue
Refunding, Series 1993, (FSA
Insured),
5.500% 05/01/28.............. Aaa/AAA 2,056
4,000 South Miami, Florida, Health
Facilities Authority,
Hospital Revenue Refunding,
(Baptist Health Systems
Obligation Group Project)
Series 1995, (MBIA Insured),
5.375% 10/01/16.............. Aaa/AAA 4,103
2,500 Sunrise Lakes, Florida, Phase
4 Recreational District, GO,
Series 1995A, Prerefunded
08/01/05 @ 102,
6.750% 08/01/24.............. NR/BBB- 2,902
1,000 Tampa, Florida, Sports
Authority, Local Optional
Sales Tax Revenue, (Stadium
Project) Series 1997, (MBIA
Insured),
5.125% 01/01/12.............. Aaa/AAA 1,039
2,000 Tampa, Florida, Sports
Authority, Local Optional
Sales Tax Revenue, (Stadium
Project) Series 1997, (MBIA
Insured),
5.250% 01/01/17.............. Aaa/AAA 2,055
2,500 Tampa, Florida, Sports
Authority, Sales Tax Revenue,
(Tampa Bay Arena Project)
Series 1995, (MBIA Insured),
5.750% 10/01/15.............. Aaa/AAA 2,769
1,000 Volusia County, Florida,
Educational Facilities
Authority, Educational
Facilities Revenue, (Embry-
Riddle Aeronautical
University Project) Series
1996A,
6.125% 10/15/26.............. Baa2/NR 1,062
--------
133,198
--------
GUAM -- 8.0%
3,820 Guam, Airport Authority,
Revenue, Series 1993A,
6.375% 10/01/10.............. NR/BBB 4,170
2,435 Guam, Airport Authority,
Revenue, Series 1993B, AMT,
6.400% 10/01/05.............. NR/BBB 2,664
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE> 129
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GUAM -- (CONTINUED)
$2,500 Guam, Government GO, Series
1995A,
5.750% 09/01/04.............. NR/BBB $ 2,514
3,000 Guam, Power Authority,
Revenue, Series 1994A,
6.750% 10/01/24.............. NR/BBB 3,359
--------
12,707
--------
PUERTO RICO -- 5.0%
4,190 Puerto Rico Commonwealth, GO,
Series 1997, (MBIA Insured),
6.500% 07/01/15.............. Aaa/AAA 5,023
1,000 Puerto Rico, Electrical Power
Authority, Power Revenue,
Series 1997AA, (MBIA
Insured),
5.250% 07/01/17.............. Aaa/AAA 1,032
685 Puerto Rico, Housing Bank and
Finance Agency, Single-
Family Mortgage Revenue,
(Affordable Housing
Mortgage-Portfolio I) Series
1995, AMT, (GNMA/FNMA/FHLMC
COLL),
6.250% 04/01/29.............. Aaa/AAA 721
1,000 Puerto Rico, Industrial
Tourist Educational Medical
and Environmental Authority,
Control Facilities Hospital
Revenue, (Hospital Auxilio
Mutuo Obligation Group
Project) Series 1995A, (MBIA
Insured),
6.250% 07/01/16.............. Aaa/AAA 1,113
--------
7,889
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $142,240)........................... 153,794
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.7%
(Cost $2,715)
2,715 AIM Tax-Exempt Fund........................ 2,715
--------
TOTAL INVESTMENTS
(Cost $144,955*)................... 99.0% 156,509
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
OTHER ASSETS AND
LIABILITIES (NET).................. 1.0%
Receivable for Fund shares sold............ $ 362
Interest receivable........................ 3,262
Prepaid expenses........................... 2
Payable for Fund shares redeemed........... (277)
Investment advisory fee payable............ (2)
Administration fee payable................. (20)
Shareholder servicing and distribution fees
payable................................... (39)
Distributions payable...................... (634)
Payable for investment securities
purchased................................. (1,000)
Accrued Trustees' fees and expenses........ (10)
Accrued expenses and other liabilities..... (125)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)......................... 1,519
--------
NET ASSETS.......................... 100.0% $158,028
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 99
Accumulated net realized loss on
investments sold.......................... (281)
Net unrealized appreciation of
investments............................... 11,554
Paid-in capital............................ 146,656
--------
NET ASSETS................................. $158,028
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($77,197,233/7,731,208
shares outstanding)....................... $9.99
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price per
share ($65,372,665/6,546,997 shares
outstanding).............................. $9.99
-----
-----
Maximum sales charge....................... 4.75%
Maximum offering price per share........... $10.49
INVESTOR B SHARES:
Net asset value and offering price per
share** ($15,435,492/1,545,859 shares
outstanding).............................. $9.99
-----
-----
INVESTOR C SHARES:
Net asset value and offering price per
share** ($22,830/2,286 shares
outstanding).............................. $9.99
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $11,681 and gross
depreciation of $127 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $144,955.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations Florida Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
MBIA 30.38%
FGIC 11.38%
Nations Florida Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
Hospital Revenue 19.81%
Electric Revenue 14.57%
Transportation Revenue 12.01%
Special Tax 10.43%
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE> 130
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.3%
GEORGIA -- 94.3%
$2,000 Albany-Dougherty, Georgia,
Payroll Development
Authority, Solid Waste
Disposal Revenue, (Procter
and Gamble Company - Procter
and Gamble Paper Products
Project) Series 1998, AMT,
5.300% 05/15/26............. Aa2/AA $ 2,010
1,000 Alpharetta, Georgia, GO,
Series 1992,
6.000% 05/01/03............. Aa2/AA 1,083
1,000 Atlanta and Fulton County,
Georgia, Recreation
Authority, Revenue
Refunding, (Atlanta Zoo
Project) Series 1992,
5.850% 12/01/00............. Aa3/AA 1,040
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 1996,
(AMBAC Insured),
5.000% 01/01/03............. Aaa/AAA 1,042
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 1996,
(AMBAC Insured),
6.000% 01/01/03............. Aaa/AAA 1,076
8,000 Atlanta, Georgia, Airport
Facilities Revenue, Series
1991, AMT, (MBIA Insured),
5.410%+ 01/01/10............ Aaa/AAA 4,504
1,000 Atlanta, Georgia, Downtown
Development Authority,
Revenue Refunding,
(Underground Atlanta
Project) Series 1992,
6.250% 10/01/12............. Aa3/AA 1,089
3,000 Baldwin County, Georgia,
School District, GO, Series
1997, (State Aid
Withholding),
4.500% 01/01/03............. NR/AA- 3,075
2,750 Bibb County, Georgia, GO,
Series 1993,
5.500% 01/01/08............. A1/AA 2,907
1,000 Burke County, Georgia,
Development Authority, PCR,
(Oglethorpe Power
Corporation Project) Series
1994B,
4.700% 01/01/04............. A3/A 1,020
2,500 Cartersville, Georgia,
Development Authority, Sewer
Facilities Revenue
Refunding, (Anheuser-Busch
Companies, Inc. Project)
Series 1997, AMT,
5.625% 05/01/09............. A1/A+ 2,701
1,000 Chatham County, Georgia,
School District, GO, Series
1992,
5.800% 08/01/04............. Aa3/AA 1,068
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Cherokee County, Georgia,
School System Revenue, GO,
Series 1993, (AMBAC
Insured),
5.875% 02/01/09............. Aaa/AAA $ 1,106
1,000 Cherokee County, Georgia,
School System, GO Refunding,
Series 1992,
5.900% 06/01/02............. A2/AA- 1,065
820 Cherokee County, Georgia,
Water and Sewer Authority,
Revenue Refunding, Series
1993, (MBIA Insured),
5.300% 08/01/09............. Aaa/AAA 873
1,000 Clarke County, Georgia,
Hospital Authority, Revenue,
(Athens Regional Medical
Center Project) Series 1993,
(MBIA Insured),
5.750% 01/01/08............. Aaa/AAA 1,077
1,000 Clarke County, Georgia,
School District, GO
Refunding, Series 1993,
(FGIC Insured),
5.100% 07/01/04............. Aaa/AAA 1,056
3,190 Clayton County, Georgia,
Hospital Authority, Revenue
Anticipation Certificates,
(Southern Regional Medical
Center Project) Series
1998A, (MBIA Insured),
5.250% 08/01/09............. Aaa/AAA 3,364
1,000 Clayton County, Georgia,
Hospital Authority, Revenue,
(Southern Regional Medical
Center Project) Series 1991,
(MBIA Insured), Prerefunded
08/01/01 @ 102,
6.700% 08/01/02............. Aaa/AAA 1,088
1,000 Clayton County, Georgia,
Water and Sewer Authority,
Revenue Refunding, Series
1993, (MBIA Insured),
5.400% 05/01/07............. Aaa/AAA 1,060
2,000 Cobb County and Marietta,
Georgia, Water Authority,
Revenue Refunding, Series
1993,
5.000% 11/01/03............. Aa1/AA 2,102
1,000 Cobb County, Georgia,
Detention Buildings and
Facilities GO, Series 1993,
5.300% 01/01/08............. Aaa/AAA 1,063
1,200 Cobb County, Georgia,
Kennestone Hospital
Authority, Revenue, Series
1992A,
5.600% 04/01/05............. Aa2/AA 1,274
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE> 131
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$1,000 Cobb County, Georgia,
Kennestone Hospital
Authority, Revenue, Series
1992A,
5.700% 04/01/06............. Aa2/AA $ 1,068
2,000 Cobb County, Georgia, School
District GO, Series 1991B,
6.150% 02/01/03............. Aa1/AA 2,167
2,000 Cobb County, Georgia, School
District, GO, Series 1995,
4.800% 02/01/04............. Aa1/AA 2,080
1,000 Cobb County, Georgia, Water
and Sewer Authority, Revenue
Refunding, Series 1993A,
5.400% 07/01/08............. Aa1/AA 1,059
2,250 Columbus, Georgia, Water and
Sewer Authority, Revenue
Refunding, Series 1992,
(FGIC Insured),
6.000% 05/01/03............. Aaa/AAA 2,436
1,000 Columbus, Georgia, Water and
Sewer Authority, Revenue
Refunding, Series 1993,
5.100% 05/01/03............. A2/A+ 1,045
1,000 Dalton, Georgia, Building
Authority Revenue, Series
1993,
5.000% 07/01/02............. A1/NR 1,039
2,000 Dalton, Georgia, Multiple
Utility Revenue Refunding,
Series 1997, (MBIA Insured),
4.450% 01/01/03............. Aaa/AAA 2,047
5,000 Dalton, Georgia, Multiple
Utility Revenue Refunding,
Series 1997, (MBIA Insured),
6.000% 01/01/06............. Aaa/AAA 5,542
1,000 De Kalb County, Georgia,
School District, GO
Refunding, Series 1993,
5.000% 07/01/03............. Aa/AA 1,048
1,000 Downtown Savannah Authority,
Georgia, Revenue Refunding,
(Chatham County Project)
Series 1993A,
5.000% 01/01/11............. Aa3/AA 1,016
6,440 Effingham County, Georgia,
Development Authority, Solid
Waste Disposal Revenue,
(Fort James Corporation
Project) Series 1998, AMT,
5.625% 07/01/18............. Baa2/BBB- 6,437
1,000 Fayette County, Georgia,
School District, GO
Refunding, Series 1992,
(FGIC Insured),
6.100% 03/01/03............. Aaa/AAA 1,081
1,000 Fayette County, Georgia,
School District, GO, Series
1994,
5.200% 03/01/00............. Aa/A+ 1,019
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$3,800 Forsyth County, Georgia,
Water and Sewer Authority,
Revenue, Series 1998,
5.000% 04/01/02............. Aa3/AA- $ 3,943
1,500 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
(Georgia Baptist Health Care
Project) Series 1992A,
5.800% 09/01/01............. Baa1/NR 1,572
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
(Georgia Baptist Health Care
Project) Series 1992A,
Prerefunded 09/01/02
@ 102,
6.000% 09/01/03............. Baa1/NR 1,085
2,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
(St. Joseph Hospital
Project) Series 1994,
4.900% 10/01/03............. Aaa/A 2,088
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
(St. Joseph Hospital
Project) Series 1994,
5.500% 10/01/14............. Aaa/A 1,069
2,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
Health Systems Revenue,
(Catholic Health East
Project) Series 1998A, (MBIA
Insured),
4.600% 11/15/09............. Aaa/AAA 2,015
1,000 Fulton and De Kalb Counties,
Georgia, Hospital Authority,
GO Refunding Certificates,
(Grady Memorial Hospital
Project) Series 1993, (MBIA
Insured),
5.250% 01/01/04............. Aaa/AAA 1,056
1,025 Fulton County, Georgia,
Building Authority Revenue,
(County Government and
Health Facilities Project)
Series 1992A,
5.700% 01/01/04............. Aa3/AA 1,103
1,735 Fulton County, Georgia,
Development Authority,
Revenue (Georgia Tech
Foundation Facilities
Project) Series 1997A,
5.000% 09/01/17............. Aa1/AA+ 1,731
1,000 Fulton County, Georgia,
Hospital Authority, Revenue
Refunding Anticipation
Certificates, (Northside
Project) Series 1992A, (MBIA
Insured),
6.000% 10/01/01............. Aaa/AAA 1,058
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE> 132
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$1,500 Fulton County, Georgia,
School District, GO
Refunding, Series 1991,
6.250% 05/01/04............. Aa2/AA $ 1,660
1,000 Fulton County, Georgia,
School District, GO, Series
1994,
7.500% 01/01/02............. Aa2/AA 1,098
1,500 Georgia State, GO Refunding,
Series 1992A,
6.250% 03/01/06............. Aaa/AAA 1,693
1,200 Georgia State, GO, Series
1992B,
6.000% 03/01/04............. Aaa/AAA 1,314
2,750 Georgia State, GO, Series
1993C,
6.500% 07/01/05............. Aaa/AAA 3,128
3,500 Georgia State, GO, Series
1998C,
5.750% 09/01/09............. Aaa/AAA 3,926
980 Georgia State, Housing and
Finance Authority, Revenue,
(Home Ownership Program)
Series 1992B, AMT, (FHA/VA
MTGS),
6.600% 06/01/25............. Aa/AAA 1,047
1,000 Georgia State, Tollway
Authority, Revenue
Refunding, (Georgia 400
Project) Series 1998,
5.000% 07/01/07............. Aaa/AAA 1,058
2,000 Georgia State, Tollway
Authority, Revenue, (Georgia
400 Project) Series 1991,
(ST GTD), Prerefunded
07/01/01 @ 102,
6.375% 07/01/02............. Aaa/AAA 2,158
1,000 Georgia State, Tollway
Authority, Revenue, (Georgia
400 Project) Series 1991,
(ST GTD), Prerefunded
07/01/01 @ 102,
6.400% 07/01/03............. Aaa/AAA 1,080
1,500 Georgia, Municipal Gas
Authority, Gas Tax Revenue,
(Southern Storage Gas
Project) Series 1994,
6.000% 07/01/04............. NR/A- 1,635
1,000 Griffin-Spalding County,
Georgia, School System, GO,
Series 1996, (State Aid
Withholding), (FSA Insured),
5.250% 02/01/10............. Aaa/AAA 1,026
2,000 Griffin-Spalding County,
Georgia, School System, GO,
Series 1996, (State Aid
Withholding), (FSA Insured),
5.600% 02/01/21............. Aaa/AAA 2,063
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Gwinnett County, Georgia,
School District, GO
Refunding, Series 1992B,
6.000% 02/01/01............. Aa1/AA+ $ 1,044
1,000 Gwinnett County, Georgia,
School District, GO, Series
1993,
5.250% 02/01/08............. Aa1/AA+ 1,045
1,000 Hall County, Georgia, School
District, GO Refunding,
Series 1992B,
6.300% 12/01/05............. A1/NR 1,130
2,000 Hall County, Georgia, School
District, GO, Series 1994,
(AMBAC Insured), Prerefunded
12/01/04 @ 102,
6.700% 12/01/14............. Aaa/AAA 2,312
1,000 Henry City and County,
Georgia, Water and Sewer
Authority, Improvement
Revenue Refunding, Series
1993A,
5.000% 02/01/07............. A2/NR 1,041
2,000 Henry County, Georgia,
Hospital Authority, Revenue,
(Henry Medical Center, Inc.
Project) Series 1997, (AMBAC
Insured),
5.250% 07/01/09............. Aaa/AAA 2,127
1,000 Henry County, Georgia, School
District, GO Refunding,
Series 1992B,
5.600% 08/01/01............. A1/A+ 1,046
1,000 Henry County, Georgia, School
District, GO, Series 1992A,
5.700% 08/01/02............. A1/A+ 1,062
2,000 Houston County, Georgia,
School District, GO, Series
1996, (State Aid
Withholding), (MBIA
Insured),
5.500% 03/01/16............. Aaa/AAA 2,083
1,000 Macon, Georgia, Water
Authority, Water and Sewer
Revenue Refunding, Series
1994A,
4.700% 10/01/04............. A1/AA- 1,039
1,000 Macon-Bibb County, Georgia,
Industrial Authority,
Industrial Revenue,
(Weyerhaeuser Company
Project) Series 1982,
9.000% 10/01/07............. NR/A+ 1,328
1,000 Meriwether County, Georgia,
School District, GO, Series
1996, (State Aid
Withholding, FSA Insured),
5.500% 02/01/16............. Aaa/AAA 1,049
1,000 Metropolitan Atlanta Rapid
Transit Authority, Georgia,
Revenue Refunding, Series
1991M,
6.150% 07/01/02............. A1/AA- 1,068
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
128
<PAGE> 133
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$3,000 Metropolitan Atlanta Rapid
Transit Authority, Georgia,
Revenue Refunding, Series
1992P, (AMBAC Insured),
5.900% 07/01/03............. Aaa/AAA $ 3,245
540 Metropolitan Atlanta Rapid
Transit Authority, Georgia,
Revenue, Series 1983D,
7.000% 07/01/11............. Aaa/AAA 663
1,000 Metropolitan Atlanta Rapid
Transit Authority, Georgia,
Revenue, Series 1998B, (MBIA
Insured),
5.100% 07/01/15............. Aaa/AAA 1,017
1,000 Monroe County, Georgia
Development Authority, PCR,
(Oglethorpe Power
Corporation Project) Series
1992A,
6.800% 01/01/12............. A3/A 1,190
2,495 Municipal Electric Authority,
Georgia, Revenue, Series
1997, (MBIA Insured),
5.375% 01/01/19............. Aaa/AAA 2,560
1,100 Paulding County, Georgia,
School District, GO, Series
1992A,
6.400% 02/01/04............. A2/A 1,217
1,000 Private Colleges and
Universities Facilities
Authority, Georgia, Revenue,
(Agnes Scott College
Project) Series 1999, (MBIA
Insured),
4.750% 06/01/15............. Aaa/AAA 983
1,000 Private Colleges and
Universities Facilities
Authority, Georgia, Revenue,
(Agnes Scott College
Project) Series 1999, (MBIA
Insured),
4.800% 06/01/16............. Aaa/AAA 981
1,400 Private Colleges and
Universities Facilities
Authority, Georgia, Revenue,
(Emory University Project)
Series 1992C,
5.750% 10/01/02............. Aa1/AA 1,495
1,000 Richmond County, Georgia,
Board of Education, GO
Refunding, Series 1993,
(FGIC Insured),
4.700% 11/01/06............. Aaa/AAA 1,032
1,500 Richmond County, Georgia,
Water and Sewer Improvement
Revenue Refunding, Series
1996A, (FGIC Insured),
5.250% 10/01/28............. Aaa/AAA 1,522
2,000 Roswell, Georgia, GO, Series
1995,
5.600% 02/01/10............. Aa2/AA 2,145
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Savannah, Georgia, Economic
Development Authority,
Revenue Refunding, (Union
Camp Corporation Project)
Series 1993,
5.150% 05/01/02............. A1/NR $ 1,038
1,250 Savannah, Georgia, Hospital
Authority, Revenue
Refunding, (Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @ 102,
7.000% 01/01/11............. Ba1/BB 1,402
1,225 Savannah, Georgia, Hospital
Authority, Revenue, (St.
Josephs - Candler Health
Systems Project) Series
1998A, (FSA Insured),
5.250% 07/01/11............. Aaa/NR 1,285
1,310 Savannah, Georgia, Hospital
Authority, Revenue, (St.
Josephs - Candler Health
Systems Project) Series
1998A, (FSA Insured),
5.250% 07/01/12............. Aaa/NR 1,366
1,000 Savannah, Georgia, Hospital
Authority, Revenue, (St.
Josephs - Candler Health
Systems Project) Series
1998B, (FSA Insured),
5.250% 07/01/10............. Aaa/NR 1,055
1,000 Savannah, Georgia, Resource
Recovery Development
Authority, Revenue
Refunding, (Savannah Energy
Systems Company Project)
Series 1992,
5.700% 12/01/00............. A1/A+ 1,035
1,500 Savannah, Georgia, Resource
Recovery Development
Authority, Revenue
Refunding, (Savannah Energy
Systems Company Project)
Series 1992,
5.850% 12/01/01............. A1/A+ 1,575
1,000 Savannah, Georgia, Water and
Sewer Improvement Revenue
Refunding, Series 1993,
5.100% 12/01/09............. Aa3/AA- 1,035
--------
151,648
--------
DISTRICT OF COLUMBIA -- 2.3%
4,000 Washington, District of
Columbia, Convention Center
Revenue, Senior Lien Series
1998, (AMBAC Insured),
4.750% 10/01/28............. Aaa/AAA 3,713
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE> 134
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- 0.7%
$1,715 Port Houston, Texas,
Authority of Harris County,
GO Refunding, Series 1997A,
(MBIA Insured),
4.450%+ 10/01/07............ Aaa/AAA $ 1,180
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $149,133).......................... 156,541
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.0%
(Cost $3,171)
3,171 AIM Tax-Exempt Fund........................ 3,171
--------
TOTAL INVESTMENTS
(Cost $152,304*)................... 99.3% 159,712
--------
OTHER ASSETS AND
LIABILITIES (NET).................. 0.7%
Cash....................................... $ 1
Receivable for Fund shares sold............ 151
Interest receivable........................ 2,275
Receivable from investment advisor......... 2
Prepaid expenses........................... 2
Payable for Fund shares redeemed........... (526)
Administration fee payable................. (20)
Shareholder servicing and distribution fees
payable................................... (21)
Distributions payable...................... (616)
Accrued Trustees' fees and expenses........ (11)
Accrued expenses and other liabilities..... (63)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)......................... 1,174
--------
NET ASSETS.......................... 100.0% $160,886
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 11
Accumulated net realized gain on
investments sold.......................... 193
Net unrealized appreciation of
investments............................... 7,408
Paid-in capital............................ 153,274
--------
NET ASSETS................................. $160,886
========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
(000)
- ---------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($132,016,093/12,068,015
shares outstanding)....................... $10.94
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($19,673,364/1,798,438 shares
outstanding).............................. $10.94
------
------
Maximum sales charge....................... 3.25%
Maximum offering price per share........... $11.31
INVESTOR B SHARES:
Net asset value and offering price per
share** ($8,310,060/759,657 shares
outstanding).............................. $10.94
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share ($886,421/81,032 shares
outstanding).............................. $10.94
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $7,501 and gross
depreciation of $93 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $152,304.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Georgia Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
MBIA 19.99%
Nations Georgia Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Water Revenue 10.74%
Industrial Development Revenue/
Pollution Control Revenue 10.65%
SEE NOTES TO FINANCIAL STATEMENTS.
130
<PAGE> 135
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.1%
GEORGIA -- 95.1%
$ 500 Albany, Georgia, Sewer System
Revenue, Series 1997, (MBIA
Insured),
4.900% 07/01/07............... Aaa/AAA $ 523
500 Albany-Dougherty, Georgia,
Payroll Development Authority,
Solid Waste Disposal Revenue,
(Procter and Gamble Company -
Procter and Gamble Paper
Products Project) Series 1998,
AMT,
5.300% 05/15/26............... Aa2/AA 502
500 Atlanta and Fulton County,
Georgia, Recreation Authority,
Public Improvement Revenue,
(Downtown Area Project) Series
1996A, (MBIA Insured),
5.375% 12/01/26............... Aaa/AAA 512
500 Bartow County, Georgia, School
District, GO, Series 1993,
5.300% 05/01/08............... A1/A 536
1,000 Brunswick and Glynn County,
Georgia, Development
Authority, Revenue Refunding,
(Georgia-Pacific Corporation
Project) Series 1998, AMT,
5.550% 03/01/26............... Baa2/NR 992
500 Burke County, Georgia,
Development Authority, PCR,
(Oglethorpe Power Corporation
Project) Series 1994B,
4.700% 01/01/04............... A3/A 510
500 Clayton County, Georgia,
Housing Authority, Multi-
Family Housing Revenue,
(Clayton Advantages of Atlanta
Apartments, Inc. Project)
Series 1995, (FHLMC COLL),
5.700% 12/01/16............... NR/AAA 515
500 Columbia County, Georgia,
School District, GO, Series
1994A, (MBIA Insured),
6.250% 04/01/13............... Aaa/AAA 561
500 Columbus, Georgia, Water and
Sewer Authority, Revenue
Refunding, Series 1993,
5.700% 05/01/20............... A2/A+ 528
470 Coweta County, Georgia,
Development Authority, IDR,
(Sivaco National Wire Group
Project) Series 1994, AMT,
5.400% 02/01/09............... A1/NR 485
500 Dalton, Georgia, Multiple
Utility Revenue Refunding,
Series 1997, (MBIA Insured),
4.450% 01/01/03............... Aaa/AAA 512
750 De Kalb County, Georgia, GO
Refunding, Series 1993,
5.250% 01/01/20............... Aa1/AA+ 758
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Effingham County, Georgia,
Development Authority, Solid
Waste Disposal Revenue, (Fort
James Corporation Project)
Series 1998, AMT,
5.625% 07/01/18............... Baa2/BBB- $ 1,000
500 Fayette County, Georgia, School
District, GO, Series 1994,
6.125% 03/01/15............... Aa/A+ 552
500 Fayette County, Georgia, Water
Revenue, Series 1998, (FGIC
Insured),
5.000% 10/01/23............... Aaa/AAA 494
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation Certificates,
(St. Joseph Hospital Project)
Series 1994,
5.500% 10/01/14............... Aaa/A 1,070
500 Fulton County, Georgia,
Development Authority,
Revenue, (Clark Atlanta
University Project) Series
1995, (CONNIE LEE Insured),
5.125% 01/01/10............... Baa3/AAA 515
1,550 Georgia State, Housing and
Finance Authority, Single-
Family Mortgage Revenue,
Series 1998B-3, (FHA/VA
Insured),
4.400% 06/01/17............... NR/AAA 1,552
500 Georgia State, Tollway
Authority, Revenue Refunding,
(Georgia 400 Project) Series
1998,
4.500% 07/01/11............... Aaa/AAA 499
500 Georgia, Municipal Electric
Authority, Power Revenue,
Series 1993CC,
4.500% 01/01/02............... A3/A 508
500 Gwinnett County, Georgia, Water
and Sewer Authority, Revenue
Refunding, Series 1994,
4.900% 08/01/06............... Aaa/AAA 526
500 Hall County, Georgia, School
District, GO Refunding, Series
1997, (State Aid Withholding),
4.500% 11/01/14............... Aa3/NR 480
500 Lawrenceville, Georgia, Housing
Authority, Multi-Family
Housing Revenue, (Knollwood
Park, LP Project) Series 1997,
AMT, (FNMA COLL AGMT),
Mandatory Put 06/01/15 @ 100,
6.250% 12/01/29............... NR/AAA 545
500 Metropolitan Atlanta Rapid
Transit Authority, Georgia,
Revenue, Series 1998B, (MBIA
Insured),
5.100% 07/01/13............... Aaa/AAA 514
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
131
<PAGE> 136
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 500 Peach County, Georgia, School
District, GO, Series 1994,
(State Aid Withholding, MBIA
Insured),
6.500% 02/01/08............... Aaa/AAA $ 580
500 Private Colleges and
Universities Facilities
Authority, Georgia, Revenue,
(Emory University Project)
Series 1997C,
5.125% 11/01/27............... Aa1/AA 497
500 Private Colleges and
Universities Facilities
Authority, Georgia, Revenue,
(Emory University Project)
Series 1998B, AMT,
5.000% 11/01/33............... Aa1/AA 483
500 Richmond County, Georgia, Water
and Sewer Improvement Revenue
Refunding, Series 1996A, (FGIC
Insured),
5.250% 10/01/28............... Aaa/AAA 507
1,000 Roswell, Georgia, GO, Series
1995,
5.600% 02/01/10............... Aa2/AA 1,073
500 Savannah, Georgia, Hospital
Authority, Hospital
Improvement Revenue Refunding,
(Candler Hospital Project)
Series 1992, Prerefunded
01/01/03 @ 102,
7.000% 01/01/23............... Ba1/BB 561
450 Savannah, Georgia, Hospital
Authority, Hospital
Improvement Revenue, (St.
Joseph's Hospital Project)
Series 1993, Prerefunded
07/01/03 @ 102,
6.125% 07/01/12............... A3/NR 496
1,000 Savannah, Georgia, Hospital
Authority, Revenue, (St.
Joseph's Hospital - Candler
Health Systems Project) Series
1998A,
(FSA Insured),
5.000% 07/01/23............... Aaa/NR 978
500 Savannah, Georgia, Water and
Sewer Improvement Revenue
Refunding, Series 1993,
5.100% 12/01/10............... Aa3/AA- 514
500 Union County, Georgia, Housing
Authority, Multi-Family
Housing Revenue Refunding,
(Hidden Lake Apartments Ltd.
Project) Series 1994A, (FHA,
FNMA COLL),
7.125% 12/01/25............... Aaa/NR 544
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
GEORGIA -- (CONTINUED)
$ 500 Upper Oconee Basin, Georgia,
Water Authority, Revenue,
Series 1997, (FGIC Insured),
5.250% 07/01/27............... Aaa/AAA $ 508
570 White County, Georgia,
Industrial Development
Authority, Revenue Refunding,
(Springs Industries, Inc.
Project) Series 1992,
6.850% 06/01/10............... NR/BBB+ 604
-------
22,534
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $21,535)............................. 22,534
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.7%
(Cost $635)
635 AIM Tax-Exempt Fund......................... 635
-------
TOTAL INVESTMENTS
(Cost $22,170*)..................... 97.8% 23,169
-------
OTHER ASSETS AND
LIABILITIES (NET)................... 2.2%
Receivable for investment securities sold... $ 266
Receivable for Fund shares sold............. 45
Interest receivable......................... 367
Receivable from investment advisor.......... 54
Payable for Fund shares redeemed............ (61)
Administration fee payable.................. (3)
Shareholder servicing and distribution fees
payable.................................... (22)
Distributions payable....................... (80)
Accrued Trustees' fees and expenses......... (9)
Accrued expenses and other liabilities...... (45)
-------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).......................... 512
-------
NET ASSETS........................... 100.0% $23,681
=======
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 7
Accumulated net realized loss on investments
sold....................................... (180)
Net unrealized appreciation of
investments................................ 999
Paid-in capital............................. 22,864
-------
NET ASSETS.................................. $23,681
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
132
<PAGE> 137
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($9,719,675/960,733 shares
outstanding)............................... $10.12
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($2,610,843/258,070 shares
outstanding)............................... $10.12
------
------
Maximum sales charge........................ 4.75%
Maximum offering price per share............ $10.62
INVESTOR B SHARES:
Net asset value and offering price per
share** ($11,348,018/1,121,700 shares
outstanding)............................... $10.12
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,888/286 shares outstanding).... $10.12
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $1,017 and gross
depreciation of $18 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $22,170.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations Georgia Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
MBIA 13.52%
Nations Georgia Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
Industrial Development Revenue/ Pollution Control Revenue 17.66%
Housing Revenue 13.62%
Water Revenue 13.41%
SEE NOTES TO FINANCIAL STATEMENTS.
133
<PAGE> 138
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.9%
MARYLAND -- 87.8%
$1,000 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1991B,
6.200% 04/15/03............. Aa1/AA+ $ 1,070
1,000 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1993,
5.125% 07/15/08............. Aa2/AA+ 1,048
2,000 Anne Arundel County,
Maryland, Consolidated Water
and Sewer GO Refunding,
Series 1993,
4.800% 04/15/05............. Aa2/AA+ 2,086
1,000 Baltimore County, Maryland,
Consolidated Public
Improvement GO, Series 1991,
6.100% 07/01/01............. Aaa/AAA 1,056
1,375 Baltimore County, Maryland,
Metropolitan District,
Special Assignment GO
Refunding, Series 1992,
5.750% 05/01/02............. Aaa/AAA 1,459
1,000 Baltimore County, Maryland,
Metropolitan District,
Special Assignment GO
Refunding, Series 1992,
5.800% 05/01/03............. Aaa/AAA 1,077
1,000 Baltimore County, Maryland,
Pension Funding GO
Refunding, Series 1995,
5.500% 08/01/05............. Aaa/AAA 1,086
1,720 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1991C, (FGIC Insured),
6.200% 10/15/02............. Aaa/AAA 1,863
1,075 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1991C, (FGIC Insured),
6.375% 10/15/07............. Aaa/AAA 1,238
1,000 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1993A, (AMBAC Insured),
5.300% 10/15/06............. Aaa/AAA 1,049
1,740 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1997A, (FGIC Insured),
5.300% 10/15/16............. Aaa/AAA 1,804
1,000 Baltimore, Maryland, GO,
Series 1989B, (MBIA
Insured),
7.000% 10/15/04............. Aaa/AAA 1,150
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Baltimore, Maryland, GO,
Series 1989B, (MBIA
Insured),
7.050% 10/15/07............. Aaa/AAA $ 1,196
1,750 Baltimore, Maryland, Port
Facilities Revenue, (E.I.
duPont de Nemours Project)
Series 1985,
6.500% 12/01/10............. Aa3/AA- 1,922
1,000 Baltimore, Maryland, Revenue
Refunding, (Wastewater
Projects) Series 1993A,
(MBIA Insured),
5.100% 07/01/04............. Aaa/AAA 1,058
500 Baltimore, Maryland, Revenue
Refunding, (Wastewater
Projects) Series 1994A,
(FGIC Insured),
5.000% 07/01/22............. Aaa/AAA 503
1,000 Baltimore, Maryland, Revenue
Refunding, (Wastewater
Projects) Series 1994A,
(FGIC Insured),
5.000% 07/01/24............. Aaa/AAA 1,004
1,000 Baltimore, Maryland, Water
Utilities Revenue Refunding,
(Water Projects) Series
1990A, (MBIA Insured),
Prerefunded 07/01/00 @ 102,
6.950% 07/01/02............. Aaa/AAA 1,064
2,000 Calvert County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993,
4.625% 07/15/05............. Aa3/AA- 2,068
500 Carroll County, Maryland,
Consolidated Public
Improvement GO, Series 1990,
Prerefunded 10/01/00 @ 102,
6.900% 10/01/02............. Aaa/AA 536
1,350 Carroll County, Maryland,
Consolidated Public
Improvement GO, Series 1991,
6.000% 11/01/00............. Aa3/AA 1,407
1,000 Cecil County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993, (FGIC Insured),
5.300% 12/01/00............. Aaa/AAA 1,033
2,000 Cecil County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993, (FGIC Insured),
4.800% 12/01/04............. Aaa/AAA 2,092
1,810 Charles County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1992, (AMBAC
Insured),
5.900% 01/15/03............. Aaa/AAA 1,945
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
134
<PAGE> 139
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,000 Charles County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1994,
4.400% 06/01/03............. Aa3/AA $ 1,025
750 Charles County, Maryland,
Consolidated Public
Improvement GO, Series 1991,
Prerefunded 06/01/01 @ 102,
6.450% 06/01/04............. Aaa/AA 809
2,135 Frederick County, Maryland,
GO Refunding, Series 1993,
5.350% 07/01/05............. Aa/AA 2,260
1,000 Frederick County, Maryland,
GO, Series 1991B,
6.300% 07/01/06............. Aa2/AA 1,090
2,000 Frederick, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1992, (FGIC Insured),
5.750% 12/01/01............. Aaa/AAA 2,115
2,240 Frederick, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1992, (FGIC Insured),
6.000% 12/01/05............. Aaa/AAA 2,438
600 Harford County, Maryland, GO,
Series 1991, Prerefunded
12/01/00 @ 102,
6.100% 12/01/04............. Aaa/AAA 639
1,920 Harford County, Maryland, GO,
Series 1997,
5.500% 12/01/07............. Aa2/AA- 2,101
1,455 Harford County, Maryland,
Public Improvement GO,
Series 1992,
5.300% 09/01/03............. Aa2/AA- 1,545
1,545 Howard County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993A,
5.000% 08/15/03............. Aaa/AAA 1,623
2,000 Howard County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993A,
5.250% 08/15/06............. Aaa/AAA 2,128
1,000 Howard County, Maryland,
Metropolitan District, GO
Refunding, Series 1991B,
6.000% 08/15/03............. Aaa/AAA 1,090
605 Laurel, Maryland, GO
Refunding, Series 1991A,
(MBIA Insured),
6.300% 07/01/00............. Aaa/AAA 627
1,530 Laurel, Maryland, Public
Improvement GO Refunding,
1996A, (FGIC Insured),
5.000% 10/01/11............. Aaa/AAA 1,581
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$1,200 Maryland State, Certificates
of Participation Refunding,
(State Highway and Motor
Vehicle Administration
Project) Series 1992,
5.700% 06/01/01............. A1/AA- $ 1,251
1,200 Maryland State, Certificates
of Participation Refunding,
(State Highway and Motor
Vehicle Administration
Project) Series 1992,
5.800% 06/01/02............. A1/AA- 1,250
4,000 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, (Single-Family
Program) Series 1998-1, AMT,
5.150% 04/01/18............. Aa2/NR 3,957
4,000 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, (Single-Family
Program) Series 1998-3, AMT,
4.500% 04/01/08............. Aa2/NR 4,015
1,000 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, (Single-Family
Program), Series 1997-1,
(MHF/FHA Insured),
4.950% 04/01/07............. Aa2/NR 1,023
2,500 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, Series 1999A, AMT,
5.350% 07/01/41............. Aa2/NR 2,479
3,900 Maryland State, Community
Development Administration,
Development Revenue,
(Lexington Terrace Senior
Housing, LP Project) Series
1998B, AMT, (HUD GRANT),
3.900% 10/01/02............. Aaa/NR 3,898
3,000 Maryland State, Community
Development Administration,
Development Revenue,
(Lexington Terrace
Townhomes, LP Project)
Series 1998A, AMT, (HUD
GRANT),
3.900% 10/01/02............. Aaa/NR 2,998
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
135
<PAGE> 140
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$3,235 Maryland State, Department of
Transportation, Consolidated
Transportation Revenue
Refunding, Series 1993-2,
4.375% 12/15/03............. Aa2/AA $ 3,322
1,250 Maryland State, Department of
Transportation, Consolidated
Transportation Revenue,
Series 1991, Prerefunded
09/01/00 @ 100.75,
6.100% 09/01/01............. Aaa/AAA 1,308
1,100 Maryland State, GO Refunding,
Series 1990-3, Prerefunded
07/15/00 @ 101.5,
6.800% 07/15/04............. Aaa/AAA 1,164
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Hospital Revenue,
(Charity Obligation Group
Project) Series 1999A,
5.000% 11/01/19............. Aa2/AA+ 985
2,700 Maryland State, Health and
Higher Education Facilities
Authority, Revenue
Refunding, (Johns Hopkins
Hospital Project) Series
1993,
5.250% 07/01/04............. Aa2/AA- 2,873
1,500 Maryland State, Health and
Higher Education Facilities
Authority, Revenue
Refunding, (Johns Hopkins
Hospital Project) Series
1993,
5.400% 07/01/06............. Aa2/AA- 1,600
3,050 Maryland State, Health and
Higher Education Facilities
Authority, Revenue
Refunding, (Johns Hopkins
Hospital Project) Series
1993,
5.500% 07/01/07............. Aa2/AA- 3,253
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue
Refunding, (University of
Maryland Medical Systems
Project) Series 1993, (FGIC
Insured),
5.200% 07/01/04............. Aaa/AAA 1,060
3,200 Maryland State, Health and
Higher Education Facilities
Authority, Revenue,
(Hospital Charity Obligation
Group) Series 1997D,
Mandatory Put 11/01/03 @
100,
4.600% 11/01/26............. Aa2/A1+ 3,279
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Howard
County General Hospital
Acquisition -- John Hopkins
Medicine Project) Series
1998, (MBIA Insured),
5.000% 07/01/19............. Aaa/AAA $ 997
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Howard
County General Hospital
Project) Series 1993,
5.125% 07/01/03............. Aaa/BBB- 1,029
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Howard
County General Hospital
Project) Series 1993,
5.500% 07/01/13............. Aaa/BBB- 1,063
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Howard
County General Hospital
Project) Series 1993,
5.500% 07/01/21............. Aaa/BBB- 1,054
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (John
Hopkins Hospital
Redevelopment Project)
Series 1979,
5.750% 07/01/09............. Aaa/AAA 1,119
500 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Sinai
Hospital of Baltimore
Project) Series 1990, (AMBAC
Insured), Prerefunded
07/01/00 @ 102,
7.300% 07/01/05............. Aaa/AAA 534
1,250 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (The
Johns Hopkins Hospital
Project) Series 1990,
Prerefunded 07/01/00 @ 102,
7.000% 07/01/01............. Aaa/AAA 1,331
1,500 Maryland State, State and
Local Facilities Loan GO,
Series 1995-2,
5.000% 10/15/04............. Aaa/AAA 1,586
3,000 Maryland State, State and
Local Facilities Loan GO,
Series 1996-3,
5.000% 10/15/06............. Aaa/AAA 3,184
1,000 Maryland State, State and
Local Facilities Loan GO,
Series 1997-2,
5.000% 08/01/07............. Aaa/AAA 1,059
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
136
<PAGE> 141
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$3,000 Maryland State, State and
Local Facilities Loan GO,
Series 1998-2,
5.000% 07/15/07............. Aaa/AAA $ 3,177
1,000 Maryland State,
Transportation Authority,
Special Obligation Revenue,
(Baltimore -- Washington
D.C. International Airport
Project) Series 1994A, AMT,
(FGIC Insured),
6.400% 07/01/19............. Aaa/AAA 1,039
1,395 Maryland State,
Transportation Authority,
Transportation Facilities
Project Revenue, Series
1978,
6.625% 07/01/03............. Aaa/AAA 1,484
2,300 Maryland State,
Transportation Authority,
Transportation Revenue,
Series 1991,
6.500% 07/01/04............. A1/A+ 2,473
4,000 Maryland State,
Transportation Authority,
Transportation Revenue,
Series 1992,
5.700% 07/01/05............. A1/A+ 4,370
2,800 Maryland State,
Transportation Authority,
Transportation Revenue,
Series 1992,
5.800% 07/01/06............. A1/A+ 3,094
500 Maryland, National Capital
Park and Planning
Commission, GO, Series
1990J-2, Prerefunded
07/01/00 @ 102,
6.900% 07/01/02............. Aa2/AA 531
1,000 Montgomery County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1992A,
5.750% 07/01/06............. Aaa/AAA 1,106
500 Montgomery County, Maryland,
Consolidated Public
Improvement GO, Series
1991A, Prerefunded 04/01/01
@ 102,
6.700% 04/01/06............. Aaa/AAA 540
3,500 Montgomery County, Maryland,
Consolidated Public
Improvement GO, Series
1993A,
4.900% 10/01/07............. Aaa/AAA 3,648
1,000 Montgomery County, Maryland,
Consolidated Public
Improvement GO, Series
1997A,
5.375% 05/01/08............. Aaa/AAA 1,088
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$1,835 Montgomery County, Maryland,
Consolidated Public
Improvement GO, Series
1998A,
4.875% 05/01/06............. Aaa/AAA $ 1,927
3,000 Montgomery County, Maryland,
GO, Series 1991, Prerefunded
10/01/01 @ 102,
6.100% 10/01/05............. Aaa/AAA 3,236
1,000 Montgomery County, Maryland,
GO, Series 1991, Prerefunded
10/01/01 @ 102,
6.125% 10/01/07............. Aaa/AAA 1,079
1,000 Montgomery County, Maryland,
Housing Opportunities
Commission, Single-Family
Mortgage Revenue, Series
1997A,
5.400% 07/01/08............. Aa2/NR 1,042
3,375 Northeast Maryland, Solid
Waste Disposal Authority,
Revenue, (Ogden Martin
Systems -- Montgomery County
Residential Receivables
Project) Series 1993A, AMT,
(MBIA-IBC Insured),
5.800% 07/01/04............. Aaa/AAA 3,657
1,535 Northeast Maryland, Solid
Waste Disposal Authority,
Southwest Research Recovery
Facilities Revenue
Refunding, (Wheelabrator
Technologies Project) Series
1993, (MBIA Insured),
7.000% 01/01/01............. Aaa/AAA 1,621
630 Ocean City, Maryland, GO
Refunding, Series 1991,
(MBIA Insured), Prerefunded
11/01/01 @ 102,
6.100% 11/01/04............. Aaa/AAA 681
1,170 Ocean City, Maryland, GO,
Series 1997, (MBIA Insured),
5.000% 12/01/14............. Aaa/AAA 1,192
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1992A,
(MBIA Insured),
5.400% 03/01/02............. Aaa/AAA 1,048
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1991,
6.500% 07/01/02............. A1/AA- 1,078
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1992A,
(MBIA Insured),
5.300% 03/01/01............. Aaa/AAA 1,034
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
137
<PAGE> 142
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1992,
5.600% 01/15/03............. A1/AA- $ 1,063
1,800 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1992,
5.900% 01/15/06............. A1/AA- 1,924
2,000 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993, (FSA
Insured),
5.100% 06/15/05............. Aaa/AAA 2,108
800 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue, Series
1990,
6.600% 06/30/00............. Aaa/AAA 832
740 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue, Series
1990, Prerefunded 06/30/00 @
102,
6.800% 06/30/04............. Aaa/AAA 786
1,000 Rockville, Maryland, GO
Refunding, Series 1993,
4.750% 04/15/05............. Aa1/AA+ 1,028
1,000 St. Mary's County, Maryland,
GO, Series 1995, (MBIA
Insured),
5.700% 03/01/08............. Aaa/AAA 1,091
2,000 University of Maryland,
Systems Auxiliary Facilities
and Tuition Revenue
Refunding, Series 1993C,
4.900% 10/01/08............. Aa3/AA+ 2,067
2,000 University of Maryland,
Systems Auxiliary Facilities
and Tuition Revenue, Series
1991A, Prerefunded 04/01/00
@ 102,
6.500% 04/01/06............. NR/AAA 2,104
745 University of Maryland,
Systems Auxiliary Facilities
and Tuition Revenue, Series
1992A,
6.000% 02/01/04............. Aa3/AA+ 789
1,000 University of Maryland,
Systems Auxiliary Facilities
and Tuition Revenue, Series
1992A,
6.300% 02/01/08............. Aa3/AA+ 1,067
1,000 University of Maryland,
Systems Auxiliary Facilities
and Tuition Revenue, Series
1992A,
6.300% 02/01/10............. Aa3/AA+ 1,067
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$2,000 Washington County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993, (FGIC Insured),
4.900% 01/01/02............. Aaa/AAA $ 2,065
1,000 Washington County, Maryland,
Consolidated Public
Improvement GO Refunding,
Series 1993, (FGIC Insured),
5.250% 01/01/06............. Aaa/AAA 1,057
500 Washington County, Maryland,
GO, Series 1990,
6.400% 12/01/00............. A1/A+ 511
1,000 Washington County, Maryland,
Sanitation District, GO
Refunding, Series 1993F,
(FGIC Insured),
5.250% 01/01/06............. Aaa/AAA 1,057
1,000 Washington County, Maryland,
Suburban Sanitation District
Authority, General
Construction GO Refunding,
Series 1993,
5.000% 06/01/04............. Aa1/AA 1,052
1,000 Washington County, Maryland,
Suburban Sanitation District
Authority, GO, Series 1996,
5.600% 06/01/15............. Aa1/AA 1,054
1,260 Washington Suburban
Sanitation District
Authority, Maryland, General
Construction GO, Series
1991-1, Prerefunded 06/01/01
@ 102,
6.750% 06/01/05............. Aaa/AAA 1,367
1,000 Washington Suburban
Sanitation District
Authority, Maryland, General
Construction GO, Series
1997,
5.125% 06/01/21............. Aa1/AA 1,005
3,440 Washington Suburban
Sanitation District
Authority, Maryland, Water
Supply GO Refunding, Series
1993,
5.100% 12/01/07............. Aa1/AA 3,620
2,010 Washington Suburban
Sanitation District
Authority, Maryland, Water
Supply GO, Series 1992,
Prerefunded 06/01/02 @ 102,
5.800% 06/01/03............. Aa1/AA 2,169
1,000 Washington Suburban
Sanitation District
Authority, Maryland, Water
Supply GO, Series 1993,
5.000% 06/01/03............. Aa1/AA 1,048
1,290 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA Insured),
4.800% 12/01/10............. Aaa/AAA 1,325
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
138
<PAGE> 143
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$1,355 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA Insured),
4.900% 12/01/11............. Aaa/AAA $ 1,392
1,425 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA Insured),
5.000% 12/01/12............. Aaa/AAA 1,469
--------
181,818
--------
COLORADO -- 0.7%
3,800 Public Highway Authority of
Colorado, Revenue, Capital
Appreciation, Series 1997B,
(MBIA Insured),
5.200%+ 09/01/18............ Aaa/AAA 1,402
--------
DISTRICT OF COLUMBIA -- 3.0%
1,305 District of Columbia,
Revenue, (The Smithsonian
Institute Project) Series
1997,
5.000% 02/01/17............. Aaa/AAA 1,294
1,085 Metropolitan Washington,
District of Columbia,
Airport Authority, Virginia
General Airport Revenue,
Series 1997B, AMT, (FGIC
Insured),
5.750% 10/01/03............. Aaa/AAA 1,164
3,500 Washington, District of
Columbia, Metropolitan Area
Transportation Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.000% 07/01/06............. Aaa/AAA 3,674
--------
6,132
--------
MAINE -- 1.0%
2,000 Baileyville, Maine, PCR,
(Georgia-Pacific Corporation
Project) Series 1998,
4.750% 06/01/05............. Baa2/NR 2,028
--------
TEXAS -- 1.8%
2,250 Hurst-Euless-Bedford, Texas,
Independent School District,
GO Refunding, Series 1998,
(PSFG Insured),
4.750% 08/15/28............. Aaa/AAA 2,108
1,750 Lamar, Texas, Consolidated
Independent School District,
GO Refunding, Series 1998,
(PSFG Insured),
4.750% 02/15/20............. Aaa/AAA 1,661
--------
3,769
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- 1.9%
$4,000 Virginia State,
Transportation Board
Authority, Transportation
Contract Revenue, (Northern
Virginia Transportation
District Project) Series
1996A,
5.125% 05/15/21............. Aa2/AA $ 3,966
--------
WASHINGTON -- 1.7%
3,000 Washington State, Public
Power Supply System Revenue
Refunding, Series 1993A,
7.000% 07/01/08............. Aa1/AA- 3,555
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost: $193,958)......................... 202,670
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.0%
(Cost $2,093)
2,093 AIM Tax-Exempt Fund...................... 2,093
--------
TOTAL INVESTMENTS
(Cost $196,051*)................. 98.9% 204,763
--------
OTHER ASSETS AND
LIABILITIES (NET)................ 1.1%
Receivable for Fund shares sold.......... $ 106
Interest receivable...................... 3,232
Miscellaneous receivables................ 12
Prepaid expenses......................... 3
Payable for Fund shares redeemed......... (101)
Investment advisory fee payable.......... (14)
Administration fee payable............... (26)
Shareholder servicing and distribution
fees payable............................ (15)
Distributions payable.................... (781)
Accrued Trustees' fees and expenses...... (12)
Accrued expenses and other liabilities... (95)
--------
TOTAL OTHER ASSETS
AND LIABILITIES (NET)................... 2,309
--------
NET ASSETS........................ 100.0% $207,072
========
NET ASSETS CONSIST OF:
Undistributed net investment income...... $ 1
Accumulated net realized gain on
investments sold........................ 88
Net unrealized appreciation of
investments............................. 8,712
Paid-in capital.......................... 198,271
--------
NET ASSETS............................... $207,072
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
139
<PAGE> 144
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
VALUE
(000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($183,355,540/16,558,568
shares outstanding)..................... $11.07
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($17,166,071/1,550,238 shares
outstanding)............................ $11.07
------
------
Maximum sales charge..................... 3.25%
Maximum offering price per share......... $11.44
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,989,304/540,890 shares
outstanding)............................ $11.07
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($561,355/50,697 shares
outstanding)............................ $11.07
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $8,833 and gross
depreciation of $121 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $196,051.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Maryland Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
FGIC 12.84%
MBIA 10.55%
Nations Maryland Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Transportation Revenue 11.97%
SEE NOTES TO FINANCIAL STATEMENTS.
140
<PAGE> 145
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.6%
MARYLAND -- 89.5%
$ 500 Anne Arundel County, Maryland,
Consolidated General
Improvement GO Refunding,
Series 1995,
5.300% 04/01/10.............. Aa1/AA+ $ 526
500 Anne Arundel County, Maryland,
Consolidated General
Improvement GO, Series 1993,
5.250% 07/15/11.............. Aa2/AA+ 525
300 Baltimore County, Maryland,
Mortgage Revenue Refunding,
(Kingswood Commons Project)
Series 1994A, (FHA Insured),
5.750% 11/01/20.............. NR/AAA 309
1,000 Baltimore County, Maryland,
Pension Funding GO Refunding,
Series 1998,
5.000% 08/01/09.............. Aaa/AAA 1,059
150 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series 1992B,
AMT, (FGIC Insured),
6.300% 10/15/08.............. Aaa/AAA 161
1,000 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series 1998B,
(FGIC Insured),
6.500% 10/15/08.............. Aaa/AAA 1,018
1,000 Baltimore, Maryland,
Convention Center Revenue
Refunding, Series 1998, (MBIA
Insured),
5.000% 09/01/06.............. Aaa/AAA 1,057
250 Baltimore, Maryland,
Convention Center Revenue,
Series 1994, (FGIC Insured),
Prerefunded 09/01/04 @ 100,
6.150% 09/01/19.............. Aaa/AAA 277
1,725 Baltimore, Maryland, Exchanged
Revenue, Series 1996A, (FGIC
Insured),
5.900% 07/01/10.............. Aaa/AAA 1,949
250 Baltimore, Maryland, Port
Facilities Revenue, (E.I.
duPont de Nemours Project)
Series 1985,
6.500% 12/01/10.............. Aa3/AA- 275
500 Baltimore, Maryland, Revenue
Refunding, (Wastewater
Projects) Series 1994A, (FGIC
Insured),
5.000% 07/01/22.............. Aaa/AAA 503
250 Cumberland, Maryland, GO
Refunding, Series 1994A,
(FGIC Insured),
5.250% 05/01/21.............. Aaa/AAA 254
400 Howard County, Maryland,
Special Facilities Revenue,
Series 1995A,
6.000% 02/15/21.............. Aa/AAA 431
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$ 500 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Multi-Family Revenue, (Auburn
Manor Apartments, LP Project)
Series 1998A, AMT, (FNMA
COLL),
5.250% 10/01/19.............. Aaa/NR $ 506
545 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, (Residential
Project) Series 1998B, AMT,
4.500% 09/01/06.............. Aa2/NR 544
500 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, (Residential
Project) Series 1998B, AMT,
4.950% 09/01/11.............. Aa2/NR 500
1,250 Maryland State, Community
Development Administration,
Department of Housing and
Community Development,
Revenue, Series 1999A, AMT,
5.350% 07/01/41.............. Aa2/NR 1,240
870 Maryland State, Community
Development Administration,
Development Revenue,
(Single-Family Program)
Series 1997-1, (MHF/FHA
Insured),
5.600% 04/01/18.............. Aa2/NR 890
500 Maryland State, Community
Development Administration,
Housing Development Revenue,
Series 1998A, AMT,
5.500% 07/01/30.............. Aa2/NR 511
500 Maryland State, Health and
Higher Education Facilities
Authority, Hospital Revenue,
(Charity Obligation Group
Project) Series 1999A,
5.000% 11/01/19.............. Aa2/AA+ 492
200 Maryland State, Health and
Higher Education Facilities
Authority, Revenue Refunding,
(Doctors Hospital Inc.
Project) Series 1993,
5.750% 07/01/13.............. Baa1/BBB- 204
200 Maryland State, Health and
Higher Education Facilities
Authority, Revenue Refunding,
(Greater Baltimore Medical
Center Project) Series 1993,
(FGIC Insured),
5.000% 07/01/13.............. Aaa/AAA 202
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
141
<PAGE> 146
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$ 300 Maryland State, Health and
Higher Education Facilities
Authority, Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.600% 07/01/09.............. Aa2/AA- $ 319
290 Maryland State, Health and
Higher Education Facilities
Authority, Revenue Refunding,
(Memorial Hospital of
Cumberland) Series 1992,
Prerefunded 07/01/04 @ 100,
6.500% 07/01/10.............. A/AA+ 325
200 Maryland State, Health and
Higher Education Facilities
Authority, Revenue Refunding,
(Peninsula Regional Medical
Center Project) Series 1993,
5.000% 07/01/08.............. A/A 206
110 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Anne
Arundel Medical Center
Project) Series 1993, (AMBAC
Insured),
5.250% 07/01/13.............. Aaa/AAA 113
510 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (College
of Notre Dame Project) Series
1998, (MBIA Insured),
4.600% 10/01/14.............. Aaa/AAA 504
460 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (College
of Notre Dame Project) Series
1998, (MBIA Insured),
5.300% 10/01/18.............. Aaa/AAA 484
100 Maryland State, Health and
Higher Education Facilities
Authority, Revenue,
(Frederick Memorial Hospital
Project) Series 1993, (FGIC
Insured),
5.250% 07/01/13.............. Aaa/AAA 106
735 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (Hospital
Charity Obligation Group)
Series 1997D, Mandatory Put
11/01/03 @ 100,
4.600% 11/01/26.............. Aa2/A1+ 753
1,000 Maryland State, Health and
Higher Education Facilities
Authority, Revenue, (John
Hopkins Hospital
Redevelopment Project) Series
1979,
5.750% 07/01/09.............. Aaa/AAA 1,120
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
MARYLAND -- (CONTINUED)
$ 425 Maryland State, Industrial
Development Finance
Authority, Revenue, (American
Center for Physics Project)
Series 1992, (GTY-AGMT),
6.375% 01/01/12.............. NR/BBB $ 450
500 Maryland State, Stadium
Authority, Lease Revenue,
(Ocean City Convention Center
Project) Series 1995,
5.375% 12/15/13.............. Aa/AA 523
1,000 Maryland State, State and
Local Facilities Loan GO,
Series 1997-2,
5.000% 08/01/06.............. Aaa/AAA 1,060
2,500 Maryland State, State and
Local Facilities Loan GO,
Series 1998-1,
4.750% 03/01/07.............. Aaa/AAA 2,600
115 Maryland State, Transportation
Authority, Special Obligation
Revenue, (Baltimore -
Washington D.C. International
Airport Project) Series
1994A, AMT, (FGIC Insured),
6.400% 07/01/19.............. Aaa/AAA 119
500 Maryland State, Transportation
Authority, Transportation
Facilities Project Revenue,
Series 1978,
6.800% 07/01/16.............. Aaa/AAA 597
300 Maryland State, Transportation
Authority, Transportation
Facilities Project Revenue,
Series 1992,
5.750% 07/01/15.............. A1/A+ 313
200 Maryland, Water Quality
Financing Administration,
Revolving Loan Fund Revenue,
Series 1992A,
6.550% 09/01/14.............. Aa2/AA 218
250 Maryland, Water Quality
Financing Administration,
Revolving Loan Fund Revenue,
Series 1993A,
5.400% 09/01/10.............. Aa2/AA 259
500 Montgomery County, Maryland,
Consolidated Public
Improvement GO, Series 1998A,
4.875% 05/01/06.............. Aaa/AAA 525
250 Montgomery County, Maryland,
Housing Opportunities
Commission, Multi-Family
Mortgage Revenue, Series
1994A,
6.000% 07/01/14.............. Aaa/NR 263
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
142
<PAGE> 147
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
MARYLAND -- (CONTINUED)
$ 300 Northeast Maryland, Solid
Waste Disposal Authority,
Revenue, (Ogden Martin
Systems - Montgomery County
Residential Receivables
Project) Series 1993A, AMT,
6.300% 07/01/16.............. A2/NR $ 321
500 Prince Georges County,
Maryland, PCR Refunding,
(Potomac Electric Power
Project) Series 1995,
5.750% 03/15/10.............. A1/A 555
1,350 Prince Georges County,
Maryland, Revenue Refunding,
(Dimensions Health
Corporation Project) Series
1994,
5.300% 07/01/24.............. A/NR 1,283
500 Prince Georges County,
Maryland, Solid Waste
Management Systems Authority,
Revenue Refunding, Series
1993, (FSA Insured),
5.200% 06/15/06.............. Aaa/AAA 528
500 Prince Georges County,
Maryland, Stormwater
Management, GO, Series 1993,
5.500% 03/15/13.............. Aa3/AA 527
1,000 University of Maryland,
Systems Auxiliary Facilities
and Tuition Revenue, Series
1997A,
5.125% 04/01/13.............. Aa3/AA+ 1,034
200 Washington County, Maryland,
Public Improvement GO, Series
1995, (MBIA Insured),
5.800% 01/01/15.............. Aaa/AAA 215
320 Washington County, Maryland,
Sanitation District, GO
Refunding, Series 1993F,
(FGIC Insured),
5.000% 01/01/04.............. Aaa/AAA 335
1,000 Washington County, Maryland,
Suburban Sanitation District
Authority, General
Construction GO Refunding,
Series 1993,
5.000% 06/01/04.............. Aa1/AA 1,052
1,000 Washington Suburban Sanitation
District Authority, Maryland,
Sewer Disposal GO, Series
1992, Prerefunded 06/01/02 @
102,
5.800% 06/01/03.............. Aa1/AA 1,079
-------
31,219
-------
DISTRICT OF COLUMBIA -- 1.7%
200 Washington, District of
Columbia, Metropolitan Area
Transportation Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
4.900% 01/01/05.............. Aaa/AAA 209
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
DISTRICT OF COLUMBIA -- (CONTINUED)
$ 350 Washington, District of
Columbia, Metropolitan Area
Transportation Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
6.000% 07/01/10.............. Aaa/AAA $ 396
-------
605
-------
GUAM -- 1.8%
600 Guam, Government GO, Series
1993A,
5.200% 11/15/08.............. NR/BBB 615
-------
PUERTO RICO -- 3.4%
500 Puerto Rico, Electric Power
Authority, Power Revenue
Refunding, Series 1995Y,
(MBIA Insured),
6.500% 07/01/06.............. Aaa/AAA 575
335 Puerto Rico, Housing Bank and
Finance Agency, Single-
Family Mortgage Revenue,
(Affordable Housing
Mortgage - Portfolio I)
Series 1995, AMT,
(GNMA/FNMA/FHLMC COLL),
6.100% 10/01/15.............. Aaa/AAA 352
250 Puerto Rico, Industrial
Medical and Environmental
Pollution Control Facilities
Finance Authority, Higher
Education Revenue Refunding,
(Catholic University of
Puerto Rico Project) Series
1993,
5.600% 12/01/07.............. NR/BBB- 265
-------
1,192
-------
TENNESSEE -- 2.2%
730 McMinn County, Tennessee,
Industrial Development Board,
PCR, (Bowater, Inc. - Calhoun
Newsprint Project) Series
1991, AMT,
7.625% 03/01/16.............. Baa1/BBB 780
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $33,266)............................ 34,411
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
143
<PAGE> 148
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $103)
103 AIM Tax-Exempt Fund......................... $ 103
-------
TOTAL INVESTMENTS
(Cost $33,369*)..................... 98.9% 34,514
-------
OTHER ASSETS AND
LIABILITIES (NET)................... 1.1%
Cash........................................ $ 1
Receivable for Fund shares sold............. 104
Interest receivable......................... 473
Receivable from investment advisor.......... 32
Payable for Fund shares redeemed............ (6)
Administration fee payable.................. (4)
Shareholder servicing and distribution fees
payable.................................... (39)
Distributions payable....................... (113)
Accrued Trustees' fees and expenses......... (9)
Accrued expenses and other liabilities...... (42)
-------
TOTAL OTHER ASSETS AND LIABILITIES (NET).... 397
-------
NET ASSETS........................... 100.0% $34,911
=======
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 7
Accumulated net realized gain on investments
sold....................................... 20
Net unrealized appreciation of
investments................................ 1,145
Paid-in capital............................. 33,739
-------
NET ASSETS.................................. $34,911
=======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($17,033,066/1,705,130
shares outstanding)........................ $9.99
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,751,310/175,314 shares
outstanding)............................... $9.99
-----
-----
Maximum sales charge........................ 4.75%
Maximum offering price per share............ $10.49
INVESTOR B SHARES:
Net asset value and offering price per
share** ($16,123,541/1,614,078 shares
outstanding)............................... $9.99
-----
-----
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,840/284 shares outstanding).... $9.99
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $1,226 and gross
depreciation of $81 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $33,369.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations Maryland Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
FGIC 15.84%
Nations Maryland Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
Housing Revenue 14.82%
Hospital Revenue 11.43%
SEE NOTES TO FINANCIAL STATEMENTS.
144
<PAGE> 149
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.3%
NORTH CAROLINA -- 93.7%
$1,000 Buncombe County, North
Carolina, GO Refunding,
Series 1993,
5.000% 03/01/03.............. Aa2/AA $ 1,045
1,250 Buncombe County, North
Carolina, Metropolitan Sewer
District, Revenue Refunding,
Series 1991A, Prerefunded
07/01/01 @ 102,
6.750% 07/01/09.............. Aaa/NR 1,360
5 Buncombe County, North
Carolina, Metropolitan Sewer
District, Sewer System
Revenue, Unrefunded Balance,
Series 1992B,
6.750% 07/01/16.............. A/NR 5
1,000 Charlotte, North Carolina, GO
Refunding, Series 1993,
4.500% 02/01/03.............. Aaa/AAA 1,028
3,055 Charlotte, North Carolina, GO
Refunding, Series 1995,
5.000% 06/01/05.............. Aaa/AAA 3,226
1,240 Charlotte, North Carolina,
Health Care Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project) Series
1992,
6.375% 01/01/09.............. Aa3/AA 1,342
425 Charlotte, North Carolina,
Health Care Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project) Series
1992,
6.250% 01/01/20.............. Aa3/AA 455
1,000 Charlotte, North Carolina,
Public Improvement GO, Series
1990A, Prerefunded 10/01/00 @
102,
6.900% 10/01/05.............. Aaa/AAA 1,072
1,800 Charlotte, North Carolina,
Public Improvement GO, Series
1991,
6.500% 02/01/07.............. Aaa/AAA 1,928
1,000 Charlotte, North Carolina,
Water and Sewer GO, Series
1994, Prerefunded 02/01/04 @
102,
5.800% 02/01/16.............. Aaa/AAA 1,100
1,670 Charlotte, North Carolina,
Water and Sewer GO, Series
1996,
5.500% 05/01/06.............. Aaa/AAA 1,813
2,340 Charlotte, North Carolina,
Water and Sewer GO, Series
1998,
4.750% 02/01/09.............. Aaa/AAA 2,420
2,000 Charlotte-Mecklenburg Hospital
Authority, Revenue,
(Carolinas Healthcare System
Project) Series 1997A,
5.000% 01/15/17.............. Aa3/AA 1,974
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$2,500 Charlotte-Mecklenburg Hospital
Authority, Revenue,
(Carolinas Healthcare System
Project) Series 1997A,
5.125% 01/15/22.............. Aa3/AA $ 2,452
760 Charlotte-Mecklenburg Hospital
Authority, Revenue, Series
1992, Prerefunded 01/01/02 @
102,
6.375% 01/01/09.............. Aa3/AA 826
705 Charlotte-Mecklenburg Hospital
Authority, Revenue, Series
1992, Prerefunded 01/01/02 @
102,
6.250% 01/01/20.............. Aa3/AA 764
2,500 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC Insured),
5.100% 06/01/01.............. Aaa/AAA 2,584
2,500 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC Insured),
5.100% 06/01/02.............. Aaa/AAA 2,607
1,000 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC Insured),
5.100% 06/01/05.............. Aaa/AAA 1,051
2,000 Coastal Regional Solid Waste
Management Authority, North
Carolina, Solid Waste
Disposal System Revenue,
Series 1992,
6.300% 06/01/04.............. A/BBB+ 2,158
500 Concord, North Carolina, GO
Refunding, Series 1992,
6.200% 06/01/05.............. Aa/AA- 542
1,000 Concord, North Carolina,
Utilities System Revenue,
Series 1993, (MBIA Insured),
5.200% 12/01/02.............. Aaa/AAA 1,052
1,000 Concord, North Carolina,
Utilities Systems Revenue,
Series 1998A, (MBIA Insured),
4.350% 12/01/05.............. Aaa/AAA 1,021
1,720 Durham and Wake County, North
Carolina, Special Apartment
District, GO Refunding,
Series 1992,
5.750% 04/01/03.............. Aaa/AAA 1,826
2,300 Durham and Wake County, North
Carolina, Special Apartment
District, GO Refunding,
Series 1993,
5.000% 04/01/03.............. Aaa/AAA 2,408
1,500 Durham County, North Carolina,
GO Refunding, Series 1992,
5.200% 03/01/07.............. Aaa/AAA 1,569
2,000 Durham County, North Carolina,
GO, Series 1992,
5.750% 02/01/06.............. Aaa/AAA 2,140
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
145
<PAGE> 150
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000 Durham County, North Carolina,
GO, Series 1993,
4.500% 05/01/00.............. Aaa/AAA $ 1,014
1,000 Fayetteville, North Carolina,
Public Works Commission,
Revenue Refunding, Series
1990, (FGIC Insured),
Prerefunded 03/01/00 @ 102,
6.750% 03/01/07.............. Aaa/AAA 1,052
2,000 Fayetteville, North Carolina,
Public Works Commission,
Revenue Refunding, Series
1993, (FGIC Insured),
4.500% 03/01/04.............. Aaa/AAA 2,054
1,150 Fayetteville, North Carolina,
Public Works Commission,
Revenue Refunding, Series
1997, (FSA Insured),
5.250% 03/01/07.............. Aaa/AAA 1,230
2,000 Forsyth County, North
Carolina, GO Refunding,
Series 1993A,
4.750% 03/01/06.............. Aaa/AAA 2,077
500 Gastonia, North Carolina,
Water Revenue and Street
Improvement GO, Series 1993,
(FGIC Insured),
5.200% 04/01/02.............. Aaa/AAA 522
1,000 Greensboro, North Carolina,
Combined Enterprise Systems
Revenue, Series 1998A,
5.000% 06/01/18.............. A1/AA- 1,001
1,305 Greensboro, North Carolina,
Enterprise Systems Revenue,
Series 1998A,
5.500% 06/01/08.............. A1/AA- 1,424
2,590 Greensboro, North Carolina,
Public Improvement GO, Series
1998,
4.700% 04/01/15.............. Aa1/AAA 2,558
2,000 Greenville, North Carolina,
Combined Enterprise Revenue,
Series 1994,
6.000% 09/01/10.............. A1/A+ 2,197
1,000 Guilford County, North
Carolina, GO, Series 1993,
5.300% 04/01/04.............. Aa1/AA+ 1,058
1,000 Haywood County, North
Carolina, Industrial
Facilities and Pollution
Control Financing Authority,
Solid Waste Disposal Revenue,
(Champion International
Corporation Project) Series
1993, AMT,
5.500% 10/01/18.............. Baa1/BBB 991
1,000 Henderson County, North
Carolina, School and
Community College GO, Series
1991,
6.500% 06/01/05.............. A1/A+ 1,079
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$ 500 Henderson County, North
Carolina, School and
Community College GO, Series
1991,
6.500% 06/01/08.............. A1/A+ $ 540
1,250 High Point, North Carolina,
GO, Series 1990, Prerefunded
06/01/00 @ 102,
6.900% 06/01/04.............. Aa3/AA 1,326
1,000 Iredell County, North
Carolina, GO, Series 1997,
4.750% 02/01/11.............. Aa3/A+ 1,014
1,095 Iredell County, North
Carolina, GO, Series 1997,
4.750% 02/01/16.............. Aa3/A+ 1,077
1,160 Lee County, North Carolina,
GO, Series 1992,
6.000% 02/01/06.............. A1/A+ 1,245
750 Lower Cape Fear, North
Carolina, Water and Sewer
Authority, Revenue, Series
1993, AMT,
5.200% 03/01/04.............. A2/BBB 785
3,650 Martin County, North Carolina,
Industrial Facilities and
Pollution Control Financing
Authority, Revenue,
(Weyerhaeuser Company
Project) Series 1985,
8.500% 06/15/99.............. A2/A 3,688
1,000 Mecklenburg County, North
Carolina, GO, Series 1991,
Prerefunded 04/01/01 @ 102,
6.200% 04/01/06.............. Aaa/AAA 1,070
1,000 Mecklenburg County, North
Carolina, Industrial
Facilities and Pollution
Control Finance Authority,
Revenue Refunding, (Fluor
Corporation Project) Series
1993,
5.250% 12/01/09.............. NR/A 1,029
1,195 Morganton, North Carolina,
Water and Sewer GO, Series
1995, (FGIC Insured),
5.700% 06/01/11.............. Aaa/AAA 1,289
2,220 New Hanover County, North
Carolina, GO, Series 1995,
5.500% 03/01/10.............. Aa3/AA- 2,373
2,000 North Carolina State, GO,
Series 1992A,
6.100% 03/01/01.............. Aaa/AAA 2,096
1,800 North Carolina State, GO,
Series 1994A,
4.700% 02/01/01.............. Aaa/AAA 1,840
1,925 North Carolina State, GO,
Series 1994A,
4.700% 02/01/04.............. Aaa/AAA 1,997
1,500 North Carolina State, GO,
Series 1997,
5.100% 06/01/09.............. Aaa/AAA 1,590
4,000 North Carolina State, GO,
Series 1997A,
5.100% 03/01/06.............. Aaa/AAA 4,248
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
146
<PAGE> 151
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,000 North Carolina State, GO,
Series 1997A,
5.100% 03/01/08.............. Aaa/AAA $ 1,062
2,150 North Carolina State, GO,
Series 1998A,
4.750% 04/01/13.............. Aaa/AAA 2,161
2,165 North Carolina, Eastern
Municipal Power Authority,
Revenue, Series 1986A,
5.000% 01/01/17.............. Aaa/BBB 2,206
1,000 North Carolina, Educational
Facilities Finance Agency,
Revenue, (Davidson College
Project) Series 1992,
5.100% 12/01/00.............. NR/AA 1,029
1,000 North Carolina, Educational
Facilities Finance Agency,
Revenue, (Duke University
Project) Series 1991C,
6.625% 10/01/08.............. Aa1/AA+ 1,084
1,500 North Carolina, Educational
Facilities Finance Agency,
Revenue, (Wake Forest
University Project) Series
1997,
5.000% 11/01/17.............. Aa3/AA 1,504
1,950 North Carolina, Housing
Finance Agency, Multi-Family
Housing Revenue Refunding,
Series 1992B, (FHA COLL),
6.900% 07/01/24.............. Aa2/AA 2,093
3,000 North Carolina, Housing
Finance Agency, Revenue,
Series 1999A-3, AMT,
5.150% 01/01/19.............. Aa2/AA 2,981
4,030 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue, (Home
Ownership Project) Series
1998A-1, AMT,
5.350% 01/01/17.............. Aa2/AA 4,048
705 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1991R, (FHA MTGS),
6.350% 03/01/03.............. Aa/AA 747
710 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1991R, (FHA MTGS),
6.350% 09/01/03.............. Aa/AA 754
925 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1994Y,
6.300% 09/01/15.............. Aa/AA 991
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$2,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue Refunding,
(North Carolina Baptist
Hospital Project) Series
1992A,
5.250% 06/01/00.............. Aa3/AA $ 2,046
3,845 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue Refunding,
(Novant Health, Inc. Project)
Series 1998A, (MBIA Insured),
5.000% 10/01/07.............. Aaa/AAA 4,038
1,830 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue Refunding,
(Novant Health, Inc. Project)
Series 1998A, (MBIA Insured),
5.100% 10/01/10.............. Aaa/AAA 1,907
2,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue Refunding,
(Presbyterian Health Care
Services Project) Series
1993,
5.250% 10/01/04.............. Aa/AA 2,118
1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue Refunding,
(Presbyterian Health Care
Services Project) Series
1993,
5.300% 10/01/05.............. Aa/AA 1,064
3,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue Refunding,
(Presbyterian Health Care
Services Project) Series
1993,
5.500% 10/01/14.............. Aa/AA 3,101
2,640 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Carolina
Medicorp Inc. Project) Series
1996,
5.100% 05/01/07.............. Aa3/AA 2,788
2,450 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Carolina
Medicorp Inc. Project) Series
1996,
5.250% 05/01/09.............. Aa3/AA 2,582
1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Carolina
Medicorp, Inc. Project)
Series 1996,
5.250% 05/01/21.............. Aa3/AA 997
2,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Duke
University Hospital Project)
Series 1996C,
5.250% 06/01/17.............. Aa3/AA 2,015
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
147
<PAGE> 152
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$2,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Gaston
Memorial Hospital Project)
Series 1995, (AMBAC-TCRS
Insured),
5.000% 02/15/05.............. Aaa/AAA $ 2,099
4,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Grace
Hospital, Inc.-Morganton
Project) Series 1996, (AMBAC
Insured),
5.250% 10/01/16.............. Aaa/AAA 4,067
1,795 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Halifax
Regional Medical Center, Inc.
Project) Series 1998,
4.600% 08/15/07.............. Baa1/A 1,784
1,500 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Moore
Regal Hospital Project)
Series 1993,
5.200% 10/01/13.............. Aa3/A+ 1,517
2,225 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Pitt
County Memorial Hospital
Project) Series 1998B,
4.750% 12/01/28.............. Aa3/AA- 2,040
1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue,
(Presbyterian Healthcare
Services Project) Series
1992,
5.200% 10/01/00.............. Aa3/AA 1,027
1,930 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Rex
Hospital, Inc. Project)
Series 1993,
5.400% 06/01/02.............. A1/A+ 2,017
1,620 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Rex
Hospital, Inc. Project)
Series 1993,
5.600% 06/01/04.............. Aaa/A+ 1,758
3,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Rex
Hospital, Inc. Project)
Series 1993, Prerefunded
06/01/03 @ 102,
6.250% 06/01/17.............. Aaa/A+ 3,329
1,000 North Carolina, Medical Care
Commission, Hospital Revenue
Refunding, (Stanley Memorial
Hospital Project) Series
1996, (AMBAC Insured),
5.250% 10/01/06.............. Aaa/AAA 1,066
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$2,000 North Carolina, Municipal
Power Agency Number 1,
Revenue, Series 1992,
(MBIA-IBC Insured),
7.250% 01/01/07.............. Aaa/AAA $ 2,380
3,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding, (Catawba
Electric Project) Series
1992, (FGIC Insured),
5.200% 01/01/00.............. Aaa/AAA 3,043
1,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding, (Catawba
Electric Project) Series
1992, (FGIC Insured),
5.500% 01/01/01.............. Aaa/AAA 1,032
1,000 North Carolina, Municipal
Power Agency, Refunding
Number 1, Catawba Electric
Revenue, Series 1990,
Prerefunded 01/01/00 @ 102,
7.000% 01/01/06.............. Aaa/A- 1,048
1,000 North Carolina, State
Education Assistance
Authority, Revenue, Series
1995A, AMT, (GTD STD LNS),
5.300% 07/01/03.............. A/NR 1,043
1,625 Orange County, North Carolina,
GO, Series 1994,
5.500% 02/01/12.............. Aa1/AA+ 1,739
2,000 Piedmont Triad Airport
Authority, North Carolina,
Revenue Refunding, Series
1990A, (MBIA Insured),
6.800% 07/01/05.............. Aaa/AAA 2,119
1,240 Pitt County, North Carolina,
Revenue Refunding, (Pitt
County Memorial Hospital
Project) Series 1995,
5.375% 12/01/10.............. Aaa/NR 1,335
1,000 Raleigh, North Carolina,
Combined Enterprise System
Revenue, Series 1996,
5.250% 03/01/07.............. Aa1/AA+ 1,071
1,910 Raleigh, North Carolina, GO,
Series 1996,
5.300% 06/01/16.............. Aaa/AAA 1,995
2,000 Randolph County, North
Carolina, GO, Series 1992,
Prerefunded 05/01/02 @ 102,
6.250% 05/01/08.............. Aa3/A+ 2,185
1,000 Robeson County, North
Carolina, Industrial
Facilities, PCR Refunding,
(Campbell Soup Company
Project) Series 1991,
6.400% 12/01/06.............. NR/AA- 1,143
1,090 Rocky Mount, North Carolina,
GO Refunding, Series 1998,
(MBIA Insured),
5.000% 02/01/10.............. Aaa/AAA 1,142
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
148
<PAGE> 153
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$ 750 Rutherford County, North
Carolina, GO, Series 1991,
(MBIA Insured),
6.400% 06/01/01.............. Aaa/AAA $ 795
1,000 Union County, North Carolina,
School District GO, Series
1991, Prefunded 04/01/01 @
101,
6.500% 04/01/03.............. A1/A+ 1,065
500 Union County, North Carolina,
School District GO, Series
1992,
5.800% 03/01/05.............. A1/A+ 531
1,000 University of North Carolina,
Chapel Hill, University
Revenue Refunding, Series
1992,
5.400% 02/15/01.............. Aa3/AA 1,034
1,000 University of North Carolina,
Chapel Hill, University
Revenue Refunding, Series
1992,
5.500% 02/15/02.............. Aa3/AA 1,048
2,500 University of North Carolina,
Chapel Hill, University
Revenue Refunding, Series
1996,
5.000% 02/15/29.............. Aa3/AA 2,417
1,000 University of North Carolina,
Charlotte, Revenue Refunding,
(Housing and Dining Systems
Project) Series 1993M, (MBIA
Insured),
4.800% 01/01/04.............. Aaa/AAA 1,039
3,500 University of North Carolina,
University Utilities Systems
Revenue Refunding, Series
1993,
5.200% 08/01/06.............. Aa2/AA 3,706
1,000 University of North Carolina,
University Utilities Systems
Revenue Refunding, Series
1993,
5.000% 08/01/09.............. Aa2/AA 1,031
1,600 University of North Carolina,
University Utilities Systems
Revenue Refunding, Series
1993,
5.000% 08/01/11.............. Aa2/AA 1,630
1,000 Wake County, North Carolina,
GO Refunding, Series 1993,
4.700% 04/01/05.............. Aaa/AAA 1,036
2,065 Wake County, North Carolina,
Hospital Revenue, Series
1993, (MBIA Insured),
5.125% 10/01/26.............. Aaa/AAA 2,105
1,000 Wake County, North Carolina,
Public Improvement GO, Series
1994,
4.600% 02/01/06.............. Aaa/AAA 1,032
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$1,200 Wayne County, North Carolina,
GO Refunding, Series 1993,
(MBIA Insured),
4.900% 04/01/05.............. Aaa/AAA $ 1,258
1,370 Wilmington, North Carolina, GO
Refunding, Series 1997B,
(FGIC Insured),
5.000% 04/01/08.............. Aaa/AAA 1,451
1,000 Wilmington, North Carolina,
Public Improvement GO, Series
1997A, (FGIC Insured),
5.000% 04/01/11.............. Aaa/NR 1,038
1,000 Wilmington, North Carolina,
Public Improvement GO, Series
1997A, (FGIC Insured),
5.000% 04/01/13.............. Aaa/NR 1,026
1,000 Winston-Salem, North Carolina,
Water and Sewer Systems,
Revenue
Refunding, Series 1997,
5.500% 06/01/07.............. Aa2/AA+ 1,090
--------
196,859
--------
ALASKA -- 0.5%
1,000 Alaska State, International
Airport Revenue, Series
1999A, AMT,
(AMBAC Insured),
5.000% 10/01/19.............. Aaa/AAA 975
--------
MISSOURI -- 1.0%
2,000 Kansas City, Missouri,
Industrial Development
Authority, IDR, (Owens-
Illinois,
Inc. - Georgia-Pacific
Corporation Project) Series
1998,
4.900% 12/31/08.............. Baa2/NR 2,009
--------
PUERTO RICO -- 0.8%
1,000 Puerto Rico, Electric Power
Authority, Power Revenue
Refunding, Series 1995Y,
(MBIA Insured),
7.000% 07/01/07.............. Aaa/AAA 1,193
500 Puerto Rico, Industrial
Tourist Educational Medical
and Environmental Control
Facilities Financing
Authority, Revenue, (Ryder
Memorial Hospital Project)
Series 1994A,
6.600% 05/01/14.............. NR/BBB 537
--------
1,730
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
149
<PAGE> 154
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- 0.8%
$1,720 Metropolitan Government
Nashville and Davidson
County, Tennessee, Hospital
Revenue, (Charity Obligation
Group Project) Series 1999A,
4.550% 11/01/10.............. Aa2/AA+ $ 1,700
--------
TEXAS -- 0.9%
1,865 Waxahachie, Texas, Independent
School District, GO
Refunding, Series 1997, (PSFG
Insured),
5.250% 08/15/07.............. Aaa/NR 1,995
--------
WASHINGTON -- 0.6%
1,150 Washington State, Public Power
Supply Systems Revenue
Refunding, Series 1993A,
(MBIA-IBC Insured),
5.800% 07/01/07.............. Aaa/AAA 1,269
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $196,469)........................... 206,537
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.9%
(Cost $1,953)
1,953 AIM Tax-Exempt Fund........................ 1,953
--------
TOTAL INVESTMENTS
(Cost $198,422*)................... 99.2% 208,490
--------
OTHER ASSETS AND
LIABILITIES (NET).................. 0.8%
Receivable for Fund shares sold............ $ 576
Interest receivable........................ 3,161
Miscellaneous receivables.................. 8
Prepaid expenses........................... 3
Payable for Fund shares redeemed........... (15)
Investment advisory fee payable............ (23)
Administration fee payable................. (26)
Shareholder servicing and distribution fees
payable................................... (10)
Distributions payable...................... (797)
Payable for investment securities
purchased................................. (999)
Accrued Trustees' fees and expenses........ (10)
Accrued expenses and other liabilities..... (81)
--------
TOTAL OTHER ASSETS AND LIABILITIES (NET)...
1,787
--------
NET ASSETS.......................... 100.0% $210,277
========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
VALUE
(000)
- ---------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 81
Accumulated net realized gain on
investments sold.......................... 318
Net unrealized appreciation of
investments............................... 10,068
Paid-in capital............................ 199,810
--------
NET ASSETS................................. $210,277
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($193,398,145/18,062,603
shares outstanding)....................... $10.71
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($10,098,755/943,181 shares
outstanding).............................. $10.71
------
------
Maximum sales charge....................... 3.25%
Maximum offering price per share........... $11.07
INVESTOR B SHARES:
Net asset value and offering price per
share** ($6,671,185/623,070 shares
outstanding).............................. $10.71
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($109,080/10,188 shares
outstanding).............................. $10.71
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $10,179 and gross
depreciation of $111 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $198,422.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations North Carolina Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at March 31, 1999 (as a percentage of
net assets):
MBIA 10.14%
Nations North Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at March 31, 1999 (as a percentage of
net assets):
Hospital Revenue 22.56%
SEE NOTES TO FINANCIAL STATEMENTS.
150
<PAGE> 155
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.0%
NORTH CAROLINA -- 91.0%
$1,050 Catawba County, North
Carolina, GO, Series 1997,
4.750% 06/01/13............. Aa2/AA- $ 1,050
525 Charlotte, North Carolina,
Health Care Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project) Series
1992,
6.250% 01/01/20............. Aa3/AA 562
1,600 Charlotte-Mecklenburg
Hospital Authority, Revenue,
(Carolinas Healthcare System
Project) Series 1997A,
6.000% 01/15/09............. Aa3/AA 1,785
2,000 Charlotte-Mecklenburg
Hospital Authority, Revenue,
(Carolinas Healthcare System
Project) Series 1997A,
5.125% 01/15/22............. Aa3/AA 1,962
975 Charlotte-Mecklenburg
Hospital Authority, Revenue,
Series 1992, Prerefunded
01/01/02 @ 102,
6.250% 01/01/20............. Aa3/AA 1,056
1,000 Craven County, North
Carolina, Industrial
Facilities and Pollution
Control Financing Authority,
PCR Refunding, (Weyerhaeuser
Company Project) Series
1992,
6.350% 01/01/10............. NR/A 1,068
1,340 Greensboro, North Carolina,
Special Obligation Revenue,
Series 1997,
5.200% 06/01/11............. Aa3/AA- 1,411
1,000 Haywood County, North
Carolina, Industrial
Facilities and Pollution
Control Financing Authority,
Solid Waste Disposal
Revenue, (Champion
International Corporation
Project) Series 1993, AMT,
5.500% 10/01/18............. Baa1/BBB 991
2,000 Martin County, North
Carolina, Industrial
Facilities and Pollution
Control Financing Authority,
Solid Waste Disposal
Revenue, (Weyerhaeuser
Company Project) Series
1993, AMT,
5.650% 12/01/23............. A2/A 2,024
1,000 Mecklenburg County, North
Carolina, GO Refunding,
Series 1993,
6.000% 04/01/11............. Aaa/AAA 1,141
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$2,000 Mecklenburg County, North
Carolina, Industrial
Facilities and Pollution
Control Finance Authority,
Revenue Refunding, (Fluor
Corporation Project) Series
1993,
5.250% 12/01/09............. NR/A $ 2,058
1,000 Monroe, North Carolina,
Combined Enterprise Systems,
Revenue,
Series 1994, Prerefunded
03/01/04 @ 102,
6.000% 03/01/14............. A3/A 1,105
1,000 Morganton, North Carolina,
Water and Sewer GO, Series
1995, (FGIC Insured),
5.600% 06/01/10............. Aaa/AAA 1,076
1,000 New Hanover County, North
Carolina, Industrial
Facilities and Pollution
Control Financing Authority,
Solid Waste Disposal
Revenue, (Occidental
Petroleum Corporation
Project) Series 1994, AMT,
6.500% 08/01/14............. Baa2/BBB 1,075
1,000 North Carolina State, GO,
Series 1997,
5.100% 06/01/06............. Aaa/AAA 1,064
1,000 North Carolina State, GO,
Series 1997,
5.100% 06/01/09............. Aaa/AAA 1,060
1,000 North Carolina State, GO,
Series 1998A,
4.750% 04/01/13............. Aaa/AAA 1,005
1,210 North Carolina, Housing
Finance Agency, Revenue,
(Home Ownership Project)
Series 1998A-2, AMT,
5.200% 01/01/20............. Aa2/AA 1,207
1,000 North Carolina, Housing
Finance Agency, Revenue,
Series 1999A-3, AMT,
5.150% 01/01/19............. Aa2/AA 994
830 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1992U, (GNMA/FNMA
COLL),
6.700% 03/01/18............. Aa/AA 883
970 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1994W,
6.200% 09/01/09............. Aa2/AA 1,035
1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue,
(Carolina Medicorp Inc.
Project) Series 1996,
5.100% 05/01/07............. Aa3/AA 1,056
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
151
<PAGE> 156
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
NORTH CAROLINA -- (CONTINUED)
$1,130 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Gaston
Memorial Hospital Project)
Series 1995, (AMBAC-TCRS
Insured),
5.250% 02/15/07............. Aaa/AAA $ 1,205
1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Grace
Hospital, Inc. - Morganton
Project) Series 1996, (AMBAC
Insured),
5.250% 10/01/16............. Aaa/AAA 1,016
860 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Halifax
Regional Medical Center,
Inc. Project) Series 1998,
4.600% 08/15/06............. Baa1/A 860
1,000 North Carolina, Medical Care
Commission, Health Care
Facilities Revenue, (Rex
Hospital, Inc. Project)
Series 1993, Prerefunded
06/01/03 @ 102,
6.250% 06/01/17............. Aaa/A+ 1,110
1,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding, (Catawba
Electric Project) Series
1992, (FGIC Insured),
6.200% 01/01/18............. Aaa/AAA 1,088
1,500 Onslow County, North
Carolina, Combined
Enterprise Systems, Revenue,
Series 1994, (MBIA Insured),
5.875% 06/01/09............. Aaa/AAA 1,642
1,000 Orange County, North
Carolina, GO, Series 1994,
5.500% 02/01/14............. Aa1/AA+ 1,066
1,000 Pitt County, North Carolina,
Hospital Revenue, (Pitt
County Memorial Hospital
Project) Series 1995,
5.250% 12/01/21............. Aaa/NR 1,031
1,500 University of North Carolina,
Chapel Hill, University
Revenue Refunding, Series
1996,
5.000% 02/15/29............. Aa3/AA 1,450
1,000 Wilmington, North Carolina,
Water Authority, GO, Series
1994,
5.700% 06/01/15 A1/A+ 1,062
--------
38,198
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
FLORIDA -- 2.5%
$1,000 St. Johns County, Florida,
Industrial Development
Authority, Revenue, (World
Golf Foundation Project)
Series 1997A, (MBIA Insured,
Rogers Towers Bailey Jone
LOC),
5.500% 03/01/17............. Aaa/AAA $ 1,037
--------
PUERTO RICO -- 1.5%
600 Puerto Rico, Industrial
Medical and Environmental
Pollution Control Facilities
Finance Authority, Higher
Education Revenue Refunding,
(Catholic University of
Puerto Rico Project) Series
1993,
5.600% 12/01/07............. NR/BBB- 636
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $37,620)........................... 39,871
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.5%
(Cost $643)
643 AIM Tax-Exempt Fund......................... 643
-------
TOTAL INVESTMENTS
(Cost $38,263*).................... 96.5% 40,514
-------
OTHER ASSETS AND
LIABILITIES (NET).................. 3.5%
Receivable for investment securities sold... $ 999
Receivable for Fund shares sold............. 172
Interest receivable......................... 604
Receivable from investment advisor.......... 31
Prepaid expenses............................ 1
Payable for Fund shares redeemed............ (100)
Administration fee payable.................. (5)
Shareholder servicing and distribution fees
payable.................................... (38)
Distributions payable....................... (143)
Accrued Trustees' fees and expenses......... (9)
Accrued expenses and other liabilities...... (46)
-------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).......................... 1,466
-------
NET ASSETS.......................... 100.0% $41,980
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
152
<PAGE> 157
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 21
Accumulated net realized loss on investments
sold....................................... (867)
Net unrealized appreciation of
investments................................ 2,251
Paid-in capital............................. 40,575
-------
NET ASSETS.................................. $41,980
=======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($16,293,170/1,616,958
shares outstanding)........................ $10.08
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,028,274/102,044 shares
outstanding)............................... $10.08
------
------
Maximum sales charge........................ 4.75%
Maximum offering price per share............ $10.58
INVESTOR B SHARES:
Net asset value and offering price per
share** ($24,655,873/2,446,880 shares
outstanding)............................... $10.08
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,876/285 shares outstanding).... $10.08
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $2,266 and gross
depreciation of $15 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $38,264.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations North Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Hospital Revenue 24.96%
Industrial Development Revenue/
Pollution Control Revenue 17.81%
Housing Revenue 10.17%
SEE NOTES TO FINANCIAL STATEMENTS.
153
<PAGE> 158
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.4%
SOUTH CAROLINA -- 98.4%
$1,100 Anderson County, South
Carolina, GO Revenue
Refunding, Series 1992,
6.400% 04/01/03............. A1/A+ $ 1,199
1,300 Anderson County, South
Carolina, GO Revenue
Refunding, Series 1992,
6.500% 04/01/04............. A1/A+ 1,413
1,240 Anderson County, South
Carolina, Sewer Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.200% 07/01/03............. Aaa/AAA 1,308
1,000 Anderson County, South
Carolina, Sewer Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.500% 07/01/06............. Aaa/AAA 1,070
1,500 Anderson County, South
Carolina, Sewer Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.600% 07/01/07............. Aaa/AAA 1,605
1,000 Anderson County, South
Carolina, Sewer Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.600% 07/01/08............. Aaa/AAA 1,066
1,000 Beaufort County, South
Carolina, GO, Series 1993,
(MBIA Insured),
5.600% 12/01/08............. Aaa/AAA 1,030
1,415 Beaufort County, South
Carolina, GO, Series 1993,
(MBIA Insured),
5.650% 12/01/09............. Aaa/AAA 1,476
2,000 Beaufort County, South
Carolina, School District,
GO, Series 1991, (AMBAC
Insured SCSDE),
6.250% 02/01/01............. Aaa/AAA 2,090
2,000 Beaufort County, South
Carolina, School District,
GO, Series 1991, (AMBAC
Insured SCSDE),
6.300% 02/01/02............. Aaa/AAA 2,091
1,000 Beaufort County, South
Carolina, School District,
GO, Series 1991, (AMBAC
Insured SCSDE),
6.400% 02/01/03............. Aaa/AAA 1,046
1,000 Berkeley County, South
Carolina, Refunding and
Improvement Authority, GO,
Series 1993, (FGIC Insured),
5.300% 05/01/04............. Aaa/AAA 1,064
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$1,000 Berkeley County, South
Carolina, Refunding and
Improvement Authority, GO,
Series 1993, (FGIC Insured),
5.400% 05/01/05............. Aaa/AAA $ 1,068
1,000 Berkeley County, South
Carolina, Refunding and
Improvement Authority, GO,
Series 1993, (FGIC Insured),
5.500% 05/01/06............. Aaa/AAA 1,068
1,000 Berkeley County, South
Carolina, Water and Sewer
Authority, Revenue
Refunding, Series 1991,
(MBIA Insured), Prerefunded
06/01/01 @ 102,
7.000% 06/01/16............. Aaa/AAA 1,090
1,000 Camden, South Carolina,
Combined Public Utilities
Revenue, Refunding and
Improvement, Series 1997,
(MBIA Insured),
5.500% 03/01/17............. Aaa/AAA 1,046
2,370 Charleston County, South
Carolina, Hospital
Facilities Revenue, (Care
Alliance Health Services
Project) Series 1999A, (FSA
Insured),
5.125% 08/15/15............. Aaa/AAA 2,416
3,000 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and Improvement,
(Bon Secours Health Systems
Project) Series 1993, (FSA
Insured), 5.500% 08/15/10... Aaa/AAA 3,229
1,000 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and Improvement,
(Medical Society Health
Project) Series 1992, (MBIA
Insured),
6.000% 10/01/09............. Aaa/AAA 1,073
1,000 Charleston County, South
Carolina, Public Improvement
Authority, GO, Series 1994,
(State Aid Withholding),
5.500% 06/01/14............. Aa3/AA 1,057
1,040 Charleston County, South
Carolina, Solid Waste User
Fee Revenue, Series 1994,
(MBIA Insured),
5.800% 01/01/06............. Aaa/AAA 1,139
5,105 Charleston, South Carolina,
Waterworks and Sewer Capital
Improvement Revenue
Refunding, Series 1998,
5.250% 01/01/08............. A1/AA- 5,459
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
154
<PAGE> 159
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,000 Charleston, South Carolina,
Waterworks and Sewer Revenue
Refunding, Series 1991,
5.750% 01/01/04............. A1/AA- $ 1,065
1,645 Cherokee County, South
Carolina, School District
Number 1, GO, Series 1997,
(SCSDE),
5.000% 03/01/02............. Aa1/AA 1,705
1,500 Clemson University, South
Carolina, Stadium Refunding
Bonds, Student and Faculty
Housing, Series 1991-M,
(MBIA Insured), Prerefunded
06/01/01 @ 100,
6.550% 06/01/07............. Aaa/AAA 1,593
1,000 Columbia, South Carolina,
Parking Facilities Revenue
Refunding, Series 1994,
(AMBAC Insured),
5.750% 12/01/09............. Aaa/AAA 1,095
6,000 Columbia, South Carolina,
Waterworks and Sewer System,
Revenue Refunding, Series
1993,
5.500% 02/01/09............. Aa/AA 6,547
2,700 Columbia, South Carolina,
Waterworks and Sewer System,
Revenue, Series 1991,
3.970%+ 02/01/03............ Aa/AA 2,321
1,285 Columbia, South Carolina,
Waterworks and Sewer Systems
Revenue, Unrefunded Balance,
Series 1991,
6.500% 02/01/02............. Aa/AA 1,371
1,000 Darlington County, South
Carolina, IDR, (Nucor
Corporation Project) Series
1993A, AMT,
5.750% 08/01/23............. A1/AA- 1,034
1,600 Darlington County, South
Carolina, IDR, (Sonoco
Products Company Project)
Series 1995, AMT,
6.125% 06/01/25............. A2/A 1,692
1,000 Darlington County, South
Carolina, PCR, (Carolina
Power & Light Project)
Series 1983, (MBIA-IBC
Insured),
6.600% 11/01/10............. Aaa/AAA 1,109
1,500 Darlington County, South
Carolina, PCR, (Carolina
Power & Light-Annual Tender
Project) Series 1983, 6.600%
11/01/10.................... A2/A1+ 1,658
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$2,000 Florence County, South
Carolina, Hospital Revenue,
(McLeod Regional Hospital
Center Project) Series
1998A, (MBIA Insured),
5.000% 11/01/18............. Aaa/AAA $ 1,968
1,000 Florence, South Carolina,
Water and Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
4.700% 03/01/01............. Aaa/AAA 1,021
1,250 Florence, South Carolina,
Water and Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.150% 03/01/06............. Aaa/AAA 1,317
1,225 Georgetown County, South
Carolina, Environmental
Revenue, (International
Paper Company Project)
Series 1997A, AMT,
5.700% 10/01/21............. A3/BBB+ 1,245
2,000 Georgetown County, South
Carolina, PCR Refunding,
(International Paper Company
Project) Series 1992,
6.250% 06/15/05 A3/BBB+ 2,137
4,000 Georgetown County, South
Carolina, PCR Refunding,
(International Paper
Company) Series 1999A,
5.125% 02/01/12............. A3/BBB+ 4,092
1,000 Grand Strand, South Carolina,
Water and Sewer Authority,
Revenue Refunding, Series
1992, (MBIA Insured),
5.900% 06/01/01............. Aaa/AAA 1,047
1,000 Grand Strand, South Carolina,
Water and Sewer Authority,
Revenue Refunding, Series
1992, (MBIA Insured),
6.000% 06/01/02............. Aaa/AAA 1,065
1,950 Grand Strand, South Carolina,
Water and Sewer Authority,
Revenue Refunding, Series
1992, (MBIA Insured),
6.300% 06/01/05............. Aaa/AAA 2,123
1,000 Grand Strand, South Carolina,
Water and Sewer Authority,
Revenue Refunding, Series
1992, (MBIA Insured),
6.400% 06/01/07............. Aaa/AAA 1,092
1,000 Greenville County, South
Carolina, Industrial Revenue
Refunding, (Monsanto Company
Project) Series 1990,
7.500% 10/01/07............. A1/NR 1,051
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
155
<PAGE> 160
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,000 Greenville, South Carolina,
Hospital Facilities Revenue
Refunding, Series 1993C,
5.300% 05/01/04............. NR/AA $ 1,050
4,000 Greenville, South Carolina,
Hospital Facilities Revenue
Refunding, Series 1993C,
5.400% 05/01/05............. NR/AA 4,232
2,400 Greenville, South Carolina,
Hospital Facilities Revenue
Refunding, Series 1993C,
5.500% 05/01/11............. NR/AA 2,471
1,000 Greenville, South Carolina,
Hospital Facilities Revenue
Refunding, Series 1996A,
(GTY-AGMT),
5.400% 05/01/07............. Aa3/AA 1,065
4,000 Greenville, South Carolina,
Hospital Facilities Revenue
Refunding, Series 1996B,
(GTY-AGMT),
5.250% 05/01/17............. Aa3/AA 4,011
2,000 Greenville, South Carolina,
Waterworks Revenue, Water
Utility Improvements, Series
1997,
6.000% 02/01/06............. Aa1/AA 2,221
1,000 Greenville, South Carolina,
Waterworks Revenue, Water
Utility Improvements, Series
1997,
6.000% 02/01/08............. Aa1/AA 1,125
1,885 Greenwood, South Carolina,
Combined Public Utilities,
Revenue Refunding and
Improvement, Series 1993,
(AMBAC Insured),
5.500% 12/01/06............. Aaa/AAA 2,025
2,000 Greenwood, South Carolina,
Combined Public Utilities,
Revenue Refunding and
Improvement, Series 1993,
(AMBAC Insured),
5.500% 12/01/07............. Aaa/AAA 2,140
1,060 Greenwood, South Carolina,
Combined Public Utilities,
Revenue Refunding and
Improvement, Series 1993,
(AMBAC Insured),
5.500% 12/01/08............. Aaa/AAA 1,130
3,900 Greer, South Carolina,
Combined Public Utilities,
Revenue Refunding and
Improvement, Series 1997,
(AMBAC Insured),
4.750% 09/01/11............. Aaa/AAA 3,938
3,500 Greer, South Carolina,
Combined Public Utilities,
Revenue Refunding and
Improvement, Series 1997,
(AMBAC Insured),
5.000% 09/01/17............. Aaa/AAA 3,491
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$1,100 Horry County, South Carolina,
Hospital Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998, (AMBAC
Insured),
4.750% 07/01/10............. Aaa/AAA $ 1,106
1,200 Horry County, South Carolina,
Hospital Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998, (AMBAC
Insured),
4.875% 07/01/11............. Aaa/AAA 1,208
1,220 Horry County, South Carolina,
School District, GO, Series
1990, (SCSDE),
7.000% 01/01/04............. A2/AA 1,320
1,275 Horry County, South Carolina,
School District, GO, Series
1995B, (MBIA Insured SCSDE),
5.700% 03/01/16............. Aaa/AAA 1,327
1,000 Kershaw County, South
Carolina, School District,
GO, Series 1991, (SCSDE),
6.400% 07/01/06............. A3/AA 1,079
1,725 Lancaster County, South
Carolina, School District,
GO, Series 1991, (MBIA
Insured), Prerefunded
07/01/02 @ 102,
6.500% 07/01/07............. Aaa/AAA 1,902
1,180 Lexington County, South
Carolina, Health Service
District, Revenue Refunding,
(Health Service District and
Lexmed, Inc.) Series 1997,
(FSA Insured),
5.500% 11/01/06............. Aaa/AAA 1,265
5,000 Lexington County, South
Carolina, Health Services
District, Revenue Refunding,
Series 1997, (FSA Insured),
5.125% 11/01/21............. Aaa/AAA 4,944
2,000 Lexington, South Carolina,
Water and Sewer Authority,
Revenue, Series 1997, (Asset
Guaranty),
5.450% 04/01/19............. NR/AA 2,035
2,000 Medical University of South
Carolina, Hospital
Facilities, Revenue
Refunding, Series 1990A,
7.000% 07/01/01............. A3/A+ 2,114
4,500 Medical University of South
Carolina, Hospital
Facilities, Revenue
Refunding, Series 1990A,
7.000% 07/01/02............. A3/A+ 4,768
3,725 Medical University of South
Carolina, Hospital
Facilities, Revenue
Refunding, Series 1990A,
7.200% 07/01/05............. A3/A+ 3,953
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
156
<PAGE> 161
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$2,500 Myrtle Beach, South Carolina,
Water and Sewer
Improvements, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.000% 03/01/03............. Aaa/AAA $ 2,609
1,750 North Charleston, South
Carolina, GO Refunding,
Series 1993,
5.600% 08/01/07............. A2/AA- 1,874
1,725 North Charleston, South
Carolina, GO Refunding,
Series 1993,
5.750% 08/01/08............. A2/AA- 1,872
1,000 North Charleston, South
Carolina, Sewer District,
Revenue Refunding, Series
1992A, (MBIA Insured),
6.000% 07/01/02............. Aaa/AAA 1,070
3,025 Oconee County, South
Carolina, PCR, Refunding,
(Duke Power Company Project)
Series 1993,
5.800% 04/01/14............. Aa2/AA- 3,185
1,000 Oconee County, South
Carolina, School District,
GO, Series 1994, (MBIA
Insured),
5.100% 01/01/13............. Aaa/AAA 1,019
1,850 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue Refunding,
Series 1991, (FGIC Insured),
6.850% 01/01/07............. Aaa/AAA 1,980
1,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue Refunding,
Series 1991A, (FGIC
Insured),
6.250% 01/01/13............. Aaa/AAA 1,075
1,600 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue Refunding,
Series 1992, (MBIA Insured),
6.000% 01/01/05............. Aaa/AAA 1,764
9,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue Refunding,
Series 1996B, (MBIA
Insured),
5.250% 01/01/09............. Aaa/AAA 9,512
1,715 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue, Unrefunded
Balance, Series 1991A, (FGIC
Insured),
6.125% 01/01/03............. Aaa/AAA 1,844
2,040 Richland County, South
Carolina, GO Refunding,
Series 1991,
5.900% 12/01/01............. Aa2/AA 2,164
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$2,020 Richland County, South
Carolina, GO Refunding,
Series 1994B, (State Aid
Withholding),
4.750% 03/01/03............. Aa2/AA $ 2,091
2,120 Richland County, South
Carolina, GO Refunding,
Series 1994B, (State Aid
Withholding),
4.850% 03/01/04............. Aa2/AA 2,210
2,250 Richland County, South
Carolina, GO Refunding,
Series 1994B, (State Aid
Withholding),
4.950% 03/01/05............. Aa2/AA 2,360
1,435 Richland County, South
Carolina, Industrial Revenue
Refunding and Improvement,
(Mills Partners Project)
Series 1987,
7.125% 12/31/01............. NR/A+ 1,452
1,000 Richland County, South
Carolina, PCR Refunding,
(Union Camp Corporation
Project) Series 1992B,
6.625% 05/01/22............. A1/A- 1,079
4,000 Richland County, South
Carolina, PCR Refunding,
(Union Camp Corporation
Project) Series 1992C,
5.875% 11/01/02............. A1/A- 4,249
1,000 Richland County, South
Carolina, PCR Refunding,
(Union Camp Corporation
Project) Series 1992C,
6.350% 11/01/07............. A1/A- 1,080
5,000 Richland County, South
Carolina, School District
Number 1, GO, Series 1996,
(SCSDE),
4.625% 03/01/22............. Aa3/AA 4,662
1,330 Richland County, South
Carolina, School District
Number 2, GO Refunding,
Series 1994A, (MBIA Insured,
SCSDE),
4.800% 03/01/03............. Aaa/AAA 1,378
1,590 Richland County, South
Carolina, School District
Number 2, GO Refunding,
Series 1994A, (MBIA Insured,
SCSDE),
4.900% 03/01/04............. Aaa/AAA 1,660
1,655 Richland County, South
Carolina, School District
Number 2, GO Refunding,
Series 1994A, (MBIA Insured,
SCSDE),
5.000% 03/01/05............. Aaa/AAA 1,740
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
157
<PAGE> 162
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,395 Richland County, South
Carolina, Solid Waste
Disposal Facilities Revenue,
(Union Camp Corporation
Project) Series 1992A, AMT,
6.750% 05/01/22............. A1/A- $ 1,515
1,000 Rock Hill, South Carolina,
Combined Public Utility
Systems Revenue, Series
1991, (FGIC Insured),
6.200% 01/01/03............. Aaa/AAA 1,059
2,000 Rock Hill, South Carolina,
School District Number 3, GO
Refunding, Series 1992B,
(FGIC Insured, SCSDE),
5.900% 02/01/02............. Aaa/AAA 2,115
2,000 South Carolina State, GO
Capital Improvement, Series
1994A,
4.250% 03/01/09............. Aaa/AAA 1,995
6,135 South Carolina State, GO
Capital Improvement, Series
1996A,
3.500% 07/01/06............. Aaa/AAA 5,922
1,750 South Carolina State, GO,
Series 1991W,
6.000% 05/01/01............. Aaa/AAA 1,830
5,000 South Carolina State, Housing
Finance and Development
Authority, Multi-Family
Housing Revenue, (United
Dominion Realty Trust
Project) Series 1994, AMT,
Mandatory Put 05/01/04 @
100,
6.500% 05/01/24............. NR/BBB 5,239
2,495 South Carolina State, Housing
Finance and Development
Authority, Rental Housing
Revenue, (Windsor Shores
Project) Series 1993B, (FHA
Insured),
5.600% 07/01/16............. NR/AA 2,532
4,565 South Carolina State, Port
Authority, Revenue Bonds,
Series 1998, AMT, (FSA
Insured),
5.250% 07/01/13............. Aaa/AAA 4,710
1,000 South Carolina State, Public
Service Authority, Revenue
Bonds, Refunded, Series
1991B,
6.600% 07/01/01............. Aaa/AAA 1,065
1,000 South Carolina State, Public
Service Authority, Revenue
Bonds, Series 1991B,
6.700% 07/01/02............. Aa2/AA- 1,080
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$4,000 South Carolina, Educational
Facilities for NonProfit
Institutions, Revenue,
(Furman University Project)
Series 1996A, (MBIA
Insured),
5.500% 10/01/26............. Aaa/AAA $ 4,165
1,500 South Carolina, Jobs Economic
Development Authority,
Hospital Facilities Revenue,
(Oconee Memorial Hospital,
Inc. Project) Series 1995,
(CONNIE LEE Insured),
6.150% 03/01/15............. NR/AAA 1,616
6,500 South Carolina, Jobs Economic
Development Authority,
Hospital Facilities Revenue,
(South Carolina Baptist
Hospital Project) Series
1993, (AMBAC Insured),
5.450% 08/01/15............. Aaa/AAA 6,717
455 South Carolina, State Housing
Authority, Revenue,
(Homeownership Mortgage
Purchase Project) Series
1994A,
5.550% 07/01/15............. Aa/AA 466
4,595 South Carolina, State Housing
Finance and Development
Authority, Revenue
Refunding, Series 1992A,
(FNMA/FHA COLL),
6.800% 11/15/11............. Aaa/NR 4,882
3,000 South Carolina, State Public
Service Authority, Revenue
Refunding, Series 1992A,
6.200% 07/01/05............. Aa2/AA- 3,248
1,000 South Carolina, State Public
Service Authority, Revenue
Refunding, Series 1992A,
6.375% 07/01/11............. Aa2/AA- 1,083
1,000 South Carolina, State Public
Service Authority, Revenue
Refunding, Series 1993A,
5.200% 07/01/03............. Aa2/AA- 1,051
1,500 South Carolina, State Public
Service Authority, Revenue
Refunding, Series 1993A,
(MBIA Insured),
5.300% 07/01/05............. Aaa/AAA 1,590
2,000 South Carolina, State Public
Service Authority, Revenue
Refunding, Series 1993C,
(AMBAC Insured),
5.100% 01/01/11............. Aaa/AAA 2,044
5,000 South Carolina,
Transportation
Infrastructure Revenue,
Series 1998A, (MBIA
Insured),
5.000% 10/01/12............. Aaa/AAA 5,119
1,025 Spartanburg County, South
Carolina, GO, Series 1992,
5.800% 02/01/05............. Aa3/AA- 1,107
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
158
<PAGE> 163
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$1,005 Spartanburg County, South
Carolina, GO, Series 1992,
5.700% 02/01/06............. Aa3/AA- $ 1,078
1,000 Spartanburg County, South
Carolina, GO, Series 1992,
5.700% 02/01/09............. Aa3/AA- 1,077
1,000 Spartanburg County, South
Carolina, Health Services
District, Hospital Revenue
Refunding, Series 1997B,
(MBIA Insured),
5.125% 04/15/17............. Aaa/AAA 1,001
3,445 Spartanburg, South Carolina,
Waterworks and Sewer Systems
Authority, Revenue,
Unrefunded Balance, Series
1992,
6.200% 06/01/09............. A1/AA- 3,705
1,000 West Columbia, South
Carolina, Water and Sewer
Revenue Refunding, Series
1992, (MBIA Insured),
6.300% 10/01/07............. Aaa/AAA 1,096
1,000 Western Carolina, Regional
Sewer Systems Authority,
Revenue Refunding, Series
1992, (AMBAC Insured),
5.800% 03/01/03............. Aaa/AAA 1,064
1,000 Western Carolina, Regional
Sewer Systems Authority,
Revenue Refunding, Series
1992, (AMBAC Insured),
5.900% 03/01/04............. Aaa/AAA 1,063
2,500 Western Carolina, Regional
Sewer Systems Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.000% 03/01/02............. Aaa/AAA 2,590
1,000 Western Carolina, Regional
Sewer Systems Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.500% 03/01/10............. Aaa/AAA 1,068
1,000 York County, South Carolina,
IDR, Exempt Facility,
(Hoechst Celanese
Corporation Project) Series
1994, AMT,
5.700% 01/01/24............. A2/A+ 1,018
4,000 York County, South Carolina,
PCR Refunding, (Bowater Inc.
Project) Series 1991B,
6.850% 04/01/01............. Baa1/BBB 4,159
--------
265,369
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $249,204).......................... 265,369
--------
</TABLE>
<TABLE>
SHARES
(000)
- --------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.6%
(Cost $1,490)
1,490 AIM Tax-Exempt Fund........................ 1,490
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $250,694*)................... 99.0% $266,859
--------
OTHER ASSETS AND LIABILITIES
(NET).............................. 1.0%
Receivable for Fund shares sold............ 280
Interest receivable........................ 3,886
Prepaid expenses........................... 3
Payable for Fund shares redeemed........... (157)
Investment advisory fee payable............ (86)
Administration fee payable................. (34)
Shareholder servicing and distribution fees
payable................................... (18)
Distributions payable...................... (1,085)
Accrued Trustees' fees and expenses........ (11)
Accrued expenses and other liabilities..... (69)
--------
TOTAL OTHER ASSETS AND LIABILITIES (NET)... 2,709
--------
NET ASSETS.......................... 100.0% $269,568
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 25
Accumulated net realized gain on
investments sold.......................... 376
Net unrealized appreciation of
investments............................... 16,165
Paid-in capital............................ 253,002
--------
NET ASSETS................................. $269,568
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($239,195,370/22,172,801
shares outstanding)....................... $10.79
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($18,729,092/1,736,150 shares
outstanding).............................. $10.79
------
------
Maximum sales charge....................... 3.25%
Maximum offering price per share........... $11.15
INVESTOR B SHARES:
Net asset value and offering price per
share** ($8,541,778/791,799 shares
outstanding).............................. $10.79
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($3,101,399/287,477 shares
outstanding).............................. $10.79
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $16,442 and gross
depreciation of $277 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $250,694.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations South Carolina Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at March 31, 1999 (as a percentage of
net assets):
AMBAC 12.83%
MBIA 19.96%
Nations South Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at March 31, 1999 (as a percentage of
net assets):
Hospital Revenue 18.81%
Water Revenue 18.41%
Electric Revenue 14.74%
Industrial Development Revenue/
Pollution Control Revenue 11.36%
SEE NOTES TO FINANCIAL STATEMENTS.
159
<PAGE> 164
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.8%
SOUTH CAROLINA -- 89.2%
$ 750 Berkeley County, South
Carolina, PCR, (South
Carolina Electric and Gas
Company Project) Series 1984,
6.500% 10/01/14.............. A2/A $ 819
525 Camden, South Carolina,
Combined Public Utilities
Revenue, Refunding, Series
1997, (MBIA Insured),
4.900% 03/01/06.............. Aaa/AAA 549
500 Charleston County, South
Carolina, Hospital
Facilities, Revenue Refunding
and Improvement, (Bon Secours
Health Systems Project)
Series 1993, (FSA Insured),
5.625% 08/15/25.............. Aaa/AAA 537
500 Charleston, South Carolina,
GO, Series 1991, Prerefunded
06/01/01 @ 102,
6.500% 06/01/11.............. Aa/NR 539
1,000 Chester County, South
Carolina, IDR, Refunding,
(Springs Industries Inc.
Project) Series 1992,
7.350% 02/01/14.............. NR/BBB+ 1,071
500 Clemson University, South
Carolina, Stadium Refunding
Bonds, Student and Faculty
Housing, Series 1991-M,
(MBIA Insured),
Prerefunded
06/01/01 @ 100,
6.600% 06/01/08.............. Aaa/AAA 532
1,000 Columbia, South Carolina,
Waterworks and Sewer System,
Revenue Refunding, Series
1993,
5.500% 02/01/09.............. Aa/AA 1,091
750 Darlington County, South
Carolina, IDR, (Nucor
Corporation Project) Series
1993A, AMT,
5.750% 08/01/23.............. A1/AA- 775
500 Darlington County, South
Carolina, IDR, (Sonoco
Products Company Project)
Series 1995, AMT,
6.125% 06/01/25.............. A2/A 529
500 Darlington County, South
Carolina, PCR, (Carolina
Power & Light-Annual Tender
Project) Series 1983,
6.600% 11/01/10.............. A2/A1+ 553
500 Dorchester County, South
Carolina, School District
Number 2, GO Refunding,
Series 1995, (FGIC Insured
SCSDE),
4.800% 07/01/05.............. Aaa/AAA 521
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 500 Dorchester County, South
Carolina, School District
Number 2, GO, Series 1996,
(FGIC Insured SCSDE),
5.125% 02/01/13.............. Aaa/AAA $ 511
500 Georgetown County,
South Carolina, PCR
Refunding, (International
Paper Company Project) Series
1992,
6.250% 06/15/05.............. A3/BBB+ 534
735 Georgetown County, South
Carolina, PCR, (International
Paper Company Project) Series
1997B, AMT,
5.600% 12/01/21.............. A3/BBB+ 741
575 Georgetown County, South
Carolina, School District,
GO, Series 1998, (MBIA
Insured SCSDE),
4.800% 03/01/11.............. Aaa/AAA 584
710 Greer, South Carolina,
Combined Public Utilities,
Revenue Refunding and
Improvement, Series 1997,
(AMBAC Insured),
5.000% 09/01/17.............. Aaa/AAA 708
500 Horry County, South Carolina,
Hospital Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998, (AMBAC
Insured),
5.000% 07/01/28.............. Aaa/AAA 481
1,000 Lexington County, South
Carolina, Health Service
District, Revenue Refunding,
(Health Service District and
Lexmed, Inc.) Series 1997,
(FSA Insured),
5.500% 11/01/06.............. Aaa/AAA 1,071
500 Lexington County, South
Carolina, Health Services
District, Revenue Refunding,
Series 1997, (FSA Insured),
5.125% 11/01/26.............. Aaa/AAA 492
500 Lexington, South Carolina,
Water and Sewer Authority,
Revenue, Series 1997,
(Asset Guaranty),
5.500% 04/01/29.............. NR/AA 512
1,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue Refunding,
Series 1996B, (MBIA Insured),
5.250% 01/01/09.............. Aaa/AAA 1,058
1,000 Richland County, South
Carolina, School District
Number 1, GO, Series 1996,
(SCSDE),
4.625% 03/01/22.............. Aa3/AA 933
525 Richland County, South
Carolina, Sewer Systems
Revenue, GO, Series 1994A,
(State Aid Withholding),
5.500% 03/01/17.............. Aa2/AA 541
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
160
<PAGE> 165
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 500 Richland County, South
Carolina, Solid Waste
Disposal Facilities Revenue,
(Union Camp Corporation
Project) Series 1992A, AMT,
6.750% 05/01/22.............. A1/A- $ 543
500 South Carolina State, GO,
Refunding and Capital
Improvement, Series 1993,
4.400% 04/01/04.............. Aaa/AAA 513
500 South Carolina State, Port
Authority, Revenue Bonds,
Series 1998, AMT, (FSA
Insured),
5.300% 07/01/26.............. Aaa/AAA 500
1,000 South Carolina State, Public
Service Authority, Revenue
Refunding, Series 1993C,
(AMBAC-TCRS Insured),
5.125% 01/01/32.............. Aaa/AAA 982
1,000 South Carolina, Educational
Facilities for NonProfit
Institutions, Revenue,
(Furman University Project)
Series 1996A, (MBIA Insured),
5.500% 10/01/26.............. Aaa/AAA 1,042
500 South Carolina, Jobs Economic
Development Authority, First
Mortgage Revenue, (Lowman
Home, Inc., Trinity Project)
Series 1995, Prerefunded
09/01/00 @ 103,
6.700% 09/01/20.............. NR/AAA 538
1,000 South Carolina, Transportation
Infrastructure Revenue,
Series 1998A, (MBIA Insured),
4.500% 10/01/17.............. Aaa/AAA 939
500 York County, South Carolina,
GO, Series 1993, (AMBAC
Insured),
4.750% 06/01/07.............. Aaa/AAA 510
900 York County, South Carolina,
PCR Refunding, (Bowater Inc.
Project) Series 1991B,
6.850% 04/01/01.............. Baa1/BBB 936
-------
22,185
-------
COLORADO -- 1.5%
1,000 Public Highway Authority of
Colorado, Revenue, Capital
Appreciation, Series 1997B,
(MBIA Insured),
5.200%+ 09/01/18............. Aaa/AAA 369
-------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
OHIO -- 2.2%
$ 500 Dayton, Ohio, Special
Facilities Revenue Refunding,
(Air Freight Corporation
Project) Series 1993F,
6.050% 10/01/09.............. NR/BBB $ 538
-------
PUERTO RICO -- 2.9%
675 Puerto Rico, Housing Bank and
Finance Agency, Single-
Family Mortgage Revenue,
(Affordable Housing
Mortgage - Portfolio I)
Series 1995, AMT, (GNMA/
FNMA/FHLMC COLL),
6.250% 04/01/29.............. Aaa/AAA 710
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $22,689)............................ 23,802
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 3.0% (Cost $733)
733 AIM Tax-Exempt Fund......................... 733
-------
TOTAL INVESTMENTS
(Cost $23,422*).................... 98.8% 24,535
-------
OTHER ASSETS AND
LIABILITIES (NET).................. 1.2%
Receivable for Fund shares sold............. $ 28
Interest receivable......................... 390
Receivable from investment advisor.......... 50
Administration fee payable.................. (3)
Shareholder servicing and distribution fees
payable.................................... (17)
Distributions payable....................... (105)
Accrued Trustees' fees and expenses......... (9)
Accrued expenses and other liabilities...... (34)
-------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).......................... 300
-------
NET ASSETS.......................... 100.0% $24,835
=======
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 11
Accumulated net realized loss on investments
sold....................................... (15)
Net unrealized appreciation of
investments................................ 1,113
Paid-in capital............................. 23,726
-------
NET ASSETS.................................. $24,835
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
161
<PAGE> 166
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($12,793,155/1,242,452
shares outstanding)........................ $10.30
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,060,032/102,948 shares
outstanding)............................... $10.30
------
------
Maximum sales charge........................ 4.75%
Maximum offering price per share............ $10.81
INVESTOR B SHARES:
Net asset value and offering price per
share** ($10,905,033/1,059,065 shares
outstanding)............................... $10.30
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($77,060/7,484 shares
outstanding)............................... $10.30
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $1,163 and gross
depreciation of $50 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $23,422.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations South Carolina Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
AMBAC 10.80%
FSA 10.74%
MBIA 20.43%
Nations South Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 26.69%
Electric Revenue 13.44%
Hospital Revenue 10.52%
SEE NOTES TO FINANCIAL STATEMENTS.
162
<PAGE> 167
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.0%
TENNESSEE -- 89.2%
$1,000 Anderson County, Tennessee,
Health and Educational
Facilities Board, Revenue
Refunding, (Methodist
Medical Center - Oak Ridge
Project) Series 1993,
5.40% 07/01/04.............. A1/NR $ 1,043
1,700 Chattanooga-Hamilton County,
Tennessee, Hospital
Authority Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993, (FSA
Insured),
5.38% 10/01/04.............. Aaa/AAA 1,810
1,000 Chattanooga-Hamilton County,
Tennessee, Hospital
Authority, Revenue
Refunding, (Erlanger Medical
Center Project) Series 1993,
(FSA Insured),
5.50% 10/01/07.............. Aaa/AAA 1,080
2,640 Dickson County, Tennessee,
GO, Series 1997, (FGIC
Insured),
5.00% 04/01/18.............. Aaa/NR 2,633
1,750 Hamilton County, Tennessee,
GO, Series 1994,
5.00% 07/01/01.............. Aa2/NR 1,806
1,145 Harpeth Valley, Tennessee,
Utilities District, Revenue
Refunding, Series 1993,
5.00% 09/01/01.............. A1/A 1,184
1,600 Knox County, Tennessee,
Health Educational and
Housing Facilities Board,
Hospital Facilities
Improvement Revenue
Refunding, (Baptist Health
System of East Tennessee,
Inc. Project) Series 1996,
(CONNIE LEE Insured),
5.50% 04/15/11.............. NR/AAA 1,694
850 Knox County, Tennessee,
Public Improvement GO,
Series 1998,
4.75% 04/01/19.............. Aa2/AA 821
500 Madison County, Tennessee,
GO, Series 1992A,
5.85% 08/01/03.............. A1/NR 534
2,270 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General Motors
Corporation - Saturn
Corporation Project) Series
1994,
6.50% 09/01/24.............. A3/A 2,492
1,800 McMinn County, Tennessee,
Industrial Development
Board, PCR Refunding,
(Bowater Inc. Project)
Series 1991,
6.85% 04/01/01.............. Baa1/BBB 1,887
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TENNESSEE -- (CONTINUED)
$1,000 McMinn County, Tennessee,
Industrial Development
Board, Recycling Facilities
Revenue, (Bowater Inc.
Project) Series 1992, AMT,
7.40% 12/01/22.............. Baa1/BBB $ 1,102
1,000 Memphis, Tennessee, Electric
System Revenue Refunding,
Series 1992,
6.00% 01/01/05.............. Aa/AA 1,099
1,250 Memphis, Tennessee, GO,
Series 1997,
5.00% 07/01/17.............. Aa2/AA 1,248
1,500 Memphis, Tennessee, Water
Division, Revenue Refunding,
Series 1992,
5.90% 01/01/04.............. Aa1/AA 1,628
1,625 Memphis, Tennessee, Water
Division, Revenue Refunding,
Series 1998,
5.25% 01/01/12 Aa1/AAA 1,726
1,000 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding, (Federal
Express Corporation Project)
Series 1992, AMT,
6.75% 09/01/12.............. Baa2/BBB 1,089
1,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Multi-
Family Housing Revenue,
(Enchantment, Inc. - Welch
Bend Apartments Project)
Series 1996A, (FNMA COLL),
Mandatory Put 01/01/07 @
100,
5.50% 01/01/27.............. NR/AAA 1,050
750 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1993,
5.25% 05/15/07.............. Aa2/AA 802
1,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1997,
5.10% 05/15/14.............. Aa2/AA 1,024
505 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health
and Educational Facilities
Board, Improvement Revenue
Refunding, (Meharry Medical
College Project) Series
1996, (AMBAC Insured),
6.00% 12/01/08.............. Aaa/AAA 570
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
163
<PAGE> 168
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
TENNESSEE -- (CONTINUED)
$ 295 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health
and Educational Facilities
Board, Improvement Revenue
Refunding, (Meharry Medical
College Project) Series
1996, (AMBAC Insured),
6.00% 12/01/09.............. Aaa/AAA $ 336
1,395 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Hospital
Revenue, (Charity Obligation
Group Project) Series 1999A,
4.63% 11/01/11.............. Aa2/AA+ 1,376
600 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water and
Sewer Revenue Refunding,
Series 1993, (FGIC Insured),
6.50% 01/01/10.............. Aaa/AAA 702
1,250 Rutherford County, Tennessee,
Capital Outlay GO, Series
1995,
6.50% 05/01/06.............. Aa2/AA 1,428
1,645 Rutherford County, Tennessee,
Public Improvement GO,
Series 1996,
6.00% 04/01/06.............. Aa2/AA 1,829
1,000 Shelby County, Tennessee, GO
Refunding, Series 1993A,
5.00% 03/01/03.............. Aa3/AA+ 1,044
260 Shelby County, Tennessee, GO,
Unrefunded Balance, Series
1992B,
6.00% 03/01/08.............. Aa3/AA+ 275
500 Shelby County, Tennessee,
Health Educational and
Housing Facilities Board,
Revenue, (Methodist Health
Systems, Inc. Project)
Series 1995, (MBIA Insured),
6.25% 08/01/09.............. Aaa/AAA 573
520 Shelby County, Tennessee,
Health Educational and
Revenue, (Lebonheur
Childrens Medical Center
Project) Series 1993D, (MBIA
Insured),
5.30% 08/15/04.............. Aaa/AAA 554
500 Shelby County, Tennessee,
Public Improvement GO,
Series 1996A,
5.63% 06/01/06.............. Aa3/AA+ 546
1,000 Sumner County, Tennessee,
Resource Authority Revenue,
Series 1993, (AMBAC
Insured),
5.13% 08/01/03.............. Aaa/AAA 1,051
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TENNESSEE -- (CONTINUED)
$1,000 Tennessee Housing Development
Agency, Mortgage Finance
Revenue, Series 1993A, AMT,
5.10% 07/01/01.............. A1/A+ $ 1,020
200 Tennessee Housing Development
Agency, Mortgage Finance
Revenue, Series 1994A, AMT,
6.30% 01/01/08.............. A1/A+ 210
1,000 Tennessee State, GO, Series
1994A,
5.20% 03/01/05.............. Aaa/AAA 1,066
1,000 Tennessee State, GO, Series
1995A,
7.00% 03/01/03.............. Aaa/AAA 1,116
500 Tennessee State, School Board
Authority, Higher Education
Facilities Revenue, Series
1992A,
6.00% 05/01/05.............. Aa2/AA+ 539
300 Tennessee, Housing
Development Agency, Mortgage
Finance Revenue, Series
1994B, AMT,
6.55% 07/01/19.............. A1/A+ 318
495 Tennessee, Housing
Development Agency, Revenue,
(Home Ownership Program)
Series 1996, AMT,
5.85% 07/01/17.............. Aa2/A1+ 517
1,120 Tennessee, Housing
Development Agency, Revenue,
(Home Ownership Program)
Series 1997, AMT,
4.44%+ 07/01/03............. Aa2/A1+ 929
1,215 Tennessee, Housing
Development Agency, Revenue,
(Home Ownership Program)
Series 1997, AMT,
4.54%+ 07/01/04............. Aa2/A1+ 960
1,000 Williamson County, Tennessee,
GO Refunding, Series 1998,
5.50% 09/01/09.............. Aa1/NR 1,095
1,655 Williamson County, Tennessee,
GO Refunding, Series 1998,
5.25% 09/01/10.............. Aa1/NR 1,774
1,540 Williamson County, Tennessee,
Hospital GO Refunding,
Series 1997,
5.00% 05/01/07.............. Aa1/NR 1,620
--------
49,200
--------
MISSOURI -- 2.4%
1,275 West Plains, Missouri,
Industrial Development
Authority, Hospital Revenue,
(Ozarks Medical Center
Project) Series 1997,
5.25% 11/15/07.............. NR/BBB- 1,311
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
164
<PAGE> 169
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
PUERTO RICO -- 3.4%
$ 600 Puerto Rico, Electric Power
Authority, Power Revenue,
Series 1991P,
6.75% 07/01/03.............. Baa1/BBB+ $ 648
390 Puerto Rico, Housing Bank and
Finance Agency, Single-
Family Mortgage Revenue,
(Affordable Housing
Mortgage-Portfolio I) Series
1995, AMT, (GNMA/FNMA/ FHLMC
COLL),
5.45% 04/01/05.............. Aaa/AAA 409
750 Puerto Rico, Industrial,
Tourist, Educational,
Medical and Environmental
Control Facilities Financing
Authority, Revenue, (Ryder
Memorial Hospital Project)
Series 1994A,
6.40% 05/01/09.............. NR/BBB 813
--------
1,870
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $50,253)........................... 52,381
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 4.0% (Cost $2,200)
2,200 AIM Tax Exempt Fund......................... 2,200
-------
TOTAL INVESTMENTS
(Cost $52,453*).................... 99.0% 54,581
-------
OTHER ASSETS AND
LIABILITIES (NET).................. 1.0%
Receivable for fund shares sold............. $ 128
Interest receivable......................... 794
Receivable from investment advisor.......... 37
Prepaid expenses............................ 1
Payable for Fund shares redeemed............ (152)
Administration fee payable.................. (7)
Shareholder servicing and distribution fees
payable.................................... (5)
Distributions payable....................... (205)
Accrued Trustees' fees and expenses......... (9)
Accrued expenses and other liabilities...... (55)
-------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).......................... 527
-------
NET ASSETS.......................... 100.0% $55,108
=======
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
VALUE
(000)
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 4
Accumulated net realized gain on investments
sold....................................... 50
Net unrealized appreciation of
investments................................ 2,128
Paid-in capital............................. 52,926
-------
NET ASSETS.................................. $55,108
=======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($42,826,302/4,095,457
shares outstanding)........................ $10.46
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($9,242,060/883,821 shares
outstanding)............................... $10.46
------
------
Maximum sales charge........................ 3.25%
Maximum offering price per share............ $10.81
INVESTOR B SHARES:
Net asset value and offering price per
share** ($3,007,223/287,578 shares
outstanding)............................... $10.46
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($32,483/3,108 shares
outstanding)............................... $10.45
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $2,168 and gross
depreciation of $40 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $52,453.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Tennessee Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Hospital Revenue 17.77%
Industrial Development Revenue/
Pollution Control Revenue 12.04%
SEE NOTES TO FINANCIAL STATEMENTS.
165
<PAGE> 170
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 90.7%
TENNESSEE -- 83.0%
$500 Blount County, Tennessee,
Public Building Authority,
Public Facility Revenue,
Series 1998, (FGIC Insured),
5.00% 04/01/19............... Aaa/NR $ 493
250 Chattanooga-Hamilton County,
Tennessee, Hospital
Authority, Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993, (FSA
Insured),
5.50% 10/01/07............... Aaa/AAA 270
500 Humphreys County, Tennessee,
Industrial Development Board,
Solid Waste Disposal, (E.I.
duPont de Nemours and Company
Project) Series 1994, AMT,
6.70% 05/01/24............... Aa3/AA- 553
400 Knox County, Tennessee, Health
Educational and Housing
Facilities Board, Hospital
Facilities Improvement
Revenue Refunding, (Baptist
Health System of East
Tennessee, Inc. Project)
Series 1996, (CONNIE LEE
Insured),
5.50% 04/15/11............... NR/AAA 423
300 Knox County, Tennessee, Health
Educational and Housing
Facilities Board, Revenue
Refunding, (Fort Sanders
Alliance Project) Series
1993, (MBIA Insured),
7.25% 01/01/09............... Aaa/AAA 363
400 Knox County, Tennessee, Public
Improvement GO, Series 1998,
4.75% 04/01/19............... Aa2/AA 386
200 Loudon County, Tennessee,
Industrial Development Board,
Solid Waste Disposal Revenue,
(Kimberly-Clark Corporation
Project) Series 1993, AMT,
6.20% 02/01/23............... Aa2/AA 214
500 Maury County, Tennessee,
Industrial Development Board,
Multi-Modal PCR Refunding,
(General Motors
Corporation - Saturn
Corporation Project) Series
1994,
6.50% 09/01/24............... A3/A 550
250 McMinn County, Tennessee,
Industrial Development Board,
Recycling Facilities Revenue,
(Bowater Inc. Project) Series
1992, AMT,
7.40% 12/01/22............... Baa1/BBB 276
300 Memphis, Tennessee, Electric
System Revenue Refunding,
Series 1993,
4.90% 01/01/11............... Aa/AA 307
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TENNESSEE -- (CONTINUED)
$250 Memphis, Tennessee, GO, Series
1997,
5.00% 07/01/17............... Aa2/AA $ 250
540 Memphis, Tennessee, Water
Division, Revenue Refunding,
Series 1998,
5.25% 01/01/11............... Aa1/AAA 575
250 Memphis-Shelby County,
Tennessee, Airport Authority,
Special Facilities and
Project Revenue Refunding,
(Federal Express Corporation
Project) Series 1992, AMT,
6.75% 09/01/12............... Baa2/BBB 272
100 Memphis-Shelby County,
Tennessee, Airport Authority,
Special Facilities and
Project Revenue Refunding,
(Federal Express Corporation
Project) Series 1993, AMT,
6.20% 07/01/14............... Baa2/BBB 106
250 Metropolitan Government,
Nashville and Davidson
County, Revenue, (Meharry
Medical Collage Project)
Series 1994, (AMBAC Insured),
Prerefunded 12/01/04 @ 102,
7.00% 12/01/11............... Aaa/AAA 293
350 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Electric
Revenue, Series 1996A,
5.63% 05/15/14............... Aa3/AA 374
250 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1993,
5.25% 05/15/07............... Aa2/AA 267
500 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health and
Educational Facilities Board,
Improvement Revenue
Refunding, (Meharry Medical
College Project) Series 1996,
(AMBAC Insured),
6.00% 12/01/16............... Aaa/AAA 566
300 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health and
Educational Facilities Board,
Improvement Revenue
Refunding, (Meharry Medical
College Project) Series 1996,
(AMBAC Insured),
6.00% 12/01/09............... Aaa/AAA 342
500 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Hospital
Revenue, (Charity Obligation
Group Project) Series 1999A,
5.00% 11/01/14............... Aa2/AA+ 498
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
166
<PAGE> 171
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TENNESSEE -- (CONTINUED)
$300 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water and
Sewer Revenue Refunding,
Series 1993, (FGIC Insured),
6.50% 01/01/10............... Aaa/AAA $ 351
300 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water and
Sewer Revenue Refunding,
Series 1993, (FGIC Insured),
5.20% 01/01/13............... Aaa/AAA 315
400 Shelby County, Tennessee,
Public Improvement GO
Refunding, Series 1999A,
4.75% 05/01/21............... Aa3/AA+ 381
250 Sumner County, Tennessee,
Health Educational and
Housing Facilities Board,
Revenue Refunding, (Sumner
Regional Health Systems, Inc.
Project) Series 1994,
7.00% 11/01/03............... NR/A- 277
250 Tennessee State, Local
Development Authority,
Revenue Refunding, (State
Loan Program) Series 1993A,
5.75% 03/01/11............... A2/AA 264
185 Tennessee, Housing Development
Agency, Revenue, (Home
Ownership Program) Series
1996, AMT,
5.85% 07/01/17............... Aa2/A1+ 193
-------
9,159
-------
PUERTO RICO -- 7.7%
500 Puerto Rico, Industrial
Tourist Educational Medical
and Environmental Control
Facilities Financing
Authority, Revenue, (Ryder
Memorial Hospital Project)
Series 1994A,
6.60% 05/01/14............... NR/BBB 537
300 Puerto Rico, Public Buildings
Authority, Guaranteed Public
Education and Health
Facilities Revenue Refunding,
Series 1993M,
5.50% 07/01/21............... Baa1/A 309
-------
846
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $9,415)............................. 10,005
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 7.8%
555 AIM Tax-Exempt Fund......................... 555
305 Nuveen Tax-Exempt Fund...................... 305
-------
TOTAL INVESTMENT COMPANIES
(Cost $860)................................ 860
-------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS 98.5%
(Cost $10,275*)..................... $10,865
-------
OTHER ASSETS AND 1.5%
LIABILITIES (NET)...................
Receivable for Fund shares sold............. $ 34
Interest receivable......................... 172
Receivable from investment advisor.......... 45
Administration fee payable.................. (1)
Shareholder servicing and distribution fees
payable.................................... (6)
Distributions payable....................... (39)
Accrued Trustees' fees and expenses......... (8)
Accrued expenses and other liabilities...... (30)
-------
TOTAL OTHER ASSETS AND LIABILITIES (NET).... 167
-------
NET ASSETS........................... 100.0% $11,032
=======
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 23
Accumulated net realized loss on investments
sold....................................... (26)
Net unrealized appreciation of
investments................................ 590
Paid-in capital............................. 10,445
-------
NET ASSETS.................................. $11,032
=======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($5,761,678/559,488 shares
outstanding)............................... $10.30
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($484,480/47,041 shares
outstanding)............................... $10.30
------
------
Maximum sales charge........................ 4.75%
Maximum offering price per share............ $10.81
INVESTOR B SHARES:
Net asset value and offering price per
share** ($4,718,256/458,160 shares
outstanding)............................... $10.30
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($67,520/6,557 shares
outstanding)............................... $10.30
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $604 and gross depreciation
of $14 for Federal income tax purposes. At March 31, 1999, the aggregate cost
of securities for Federal income tax purposes was $10,275.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations Tennessee Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
AMBAC 10.89%
FGIC 10.51%
Nations Tennessee Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
Hospital Revenue 21.81%
Industrial Development Revenue/
Pollution Control Revenue 18.14%
Water Revenue 11.42%
SEE NOTES TO FINANCIAL STATEMENTS.
167
<PAGE> 172
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.3%
TEXAS -- 86.4%
$ 1,450 Alliance Airport Authority
Inc., Texas, Special
Facilities Revenue, (American
Corporation - American
Airlines Inc. Project) Series
1991, AMT,
7.00% 12/01/11............... Baa2/BBB- $ 1,702
750 Amarillo, Texas, Junior
College District, GO, Series
1995, (FGIC Insured),
7.60% 02/15/06............... Aaa/AAA 880
1,000 Arlington, Texas, Independent
School District, GO, Series
1990,
6.75% 08/15/00............... Aa3/NR 1,045
1,375 Arlington, Texas, Independent
School District, GO, Series
1991A, (PSFG Insured),
6.38% 08/15/01............... Aaa/NR 1,462
1,500 Arlington, Texas, Independent
School District, GO, Series
1992, (PSFG Insured),
Prerefunded 02/15/02 @ 100,
6.10% 02/15/05............... Aaa/NR 1,595
1,060 Arlington, Texas, Independent
School District, GO,
Unrefunded Balance, Series
1992, (PSFG Insured),
5.80% 02/15/02............... Aaa/NR 1,119
1,775 Arlington, Texas, Independent
School District, GO,
Unrefunded Balance, Series
1992, (PSFG Insured),
6.10% 02/15/05............... Aaa/NR 1,879
1,000 Arlington, Texas, Waterworks
and Sewer Improvement Revenue
Refunding, Series 1992, (FGIC
Insured),
6.10% 06/01/02............... Aaa/AAA 1,069
5,750 Austin, Texas, GO Refunding,
Series 1993,
5.50% 09/01/04............... Aa2/AA 6,181
965 Austin, Texas, GO, Unrefunded
Balance, Series 1991A,
8.88% 09/01/00............... Aa2/AA 1,038
2,000 Austin, Texas, Public
Improvement GO, Series 1992,
(AMBAC Insured), Prerefunded
09/01/02 @ 100,
5.90% 09/01/05............... Aaa/AAA 2,139
4,275 Austin, Texas, Utility System
Revenue Refunding, Series
1992, (AMBAC Insured),
6.25% 11/15/03............... Aaa/AAA 4,688
3,000 Austin, Texas, Utility System
Revenue Refunding, Series
1992, (AMBAC Insured),
6.25% 11/15/05............... Aaa/AAA 3,286
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 2,295 Bell County, Texas, Health
Facilities Development
Revenue Refunding, (Cook
Childrens Medical Center
Hospital Project) Series
1998, (FSA Insured),
5.25% 12/01/11............... Aaa/AAA $ 2,390
985 Brazos, Texas, Higher
Education Authority Inc.,
Revenue Refunding, Senior
Lien, Series 1994A-2, AMT,
(GTD STD LNS),
6.05% 06/01/03............... Aaa/NR 1,048
3,800 Cass County, Texas, Industrial
Development Corporation,
Environmental Revenue,
(International Paper
Corporation Project) Series
1997A, AMT, (GTY-AGMT),
6.25% 04/01/21............... A3/BBB+ 4,044
3,525 Clear Creek, Texas,
Independent School District,
GO, Series 1993, (PSFG
Insured),
5.38% 02/01/06............... Aaa/AAA 3,707
1,500 Dallas, Texas, Civic Center
Convention Revenue, Senior
Lien, Series 1991, (AMBAC
Insured), Prerefunded
01/01/01 @ 100,
6.38% 01/01/02............... Aaa/AAA 1,571
3,000 Dallas, Texas, GO Refunding,
Series 1992,
5.60% 02/15/01............... Aaa/AAA 3,113
1,575 Dallas, Texas, Independent
School District, GO, Series
1993, (PSFG Insured),
5.60% 08/15/05............... Aaa/AAA 1,688
4,425 Dallas, Texas, Independent
School District, GO, Series
1993, (PSFG Insured),
5.60% 08/15/05............... Aaa/AAA 4,697
4,450 Dallas, Texas, Independent
School District, GO, Series
1993, (PSFG Insured),
5.70% 08/15/06............... Aaa/AAA 4,723
1,550 Dallas, Texas, Independent
School District, GO, Series
1993, (PSFG Insured),
Prerefunded 08/15/03 @ 100,
5.70% 08/15/06............... Aaa/AAA 1,667
5,000 Dallas-Fort Worth, Texas,
Regional Airport Revenue
Refunding, (Dallas-Fort Worth
Airport Project) Series
1994A, (MBIA Insured),
5.40% 11/01/03............... Aaa/AAA 5,327
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
168
<PAGE> 173
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 500 Denton, Texas, Health
Facilities Development
Revenue Refunding,
(Evangelical Lutheran Good
Samaritan Society Project)
Series 1994, (AMBAC Insured),
6.00% 05/01/05............... Aaa/AAA $ 548
1,395 El Paso, Texas, GO Refunding,
Series 1992C, (FGIC Insured),
5.70% 08/15/03............... Aaa/AAA 1,477
3,500 Fort Worth, Texas, GO
Refunding, Series 1992A,
5.30% 03/01/01............... Aa2/AA 3,615
3,500 Fort Worth, Texas, Higher
Education Finance
Corporation, Higher Education
Revenue, (Texas Christian
University Project) Series
1997,
5.00% 03/15/20............... Aa3/AA- 3,416
2,000 Garland, Texas, Utility
Systems Revenue Refunding,
Series 1992, (AMBAC Insured),
5.90% 03/01/02............... Aaa/AAA 2,116
2,000 Goose Creek, Texas,
Consolidated Independent
School District, GO
Refunding, Series 1998, (PSFG
Insured),
5.00% 02/15/09............... Aaa/AAA 2,094
3,000 Harris County, Texas, Flood
Control District GO
Refunding, Series 1991,
6.25% 10/01/04............... Aa2/AA 3,174
1,115 Harris County, Texas, Flood
Control District, GO, Series
1992A,
5.80% 10/01/03............... Aa2/AA 1,187
2,375 Harris County, Texas, GO
Refunding, Series 1996,
5.88% 10/01/06............... Aa2/AA 2,634
4,400 Harris County, Texas, Health
Facilities Development
Authority, Revenue, (Memorial
Hermann Hospital Systems
Project) Series 1998, (FSA
Insured),
5.50% 06/01/10............... Aaa/AAA 4,707
1,000 Harris County, Texas, Health
Facilities Development
Authority, Revenue, (Memorial
Hospital Systems Project)
Series 1992,
6.70% 06/01/00............... A3/NR 1,038
2,655 Harris County, Texas, Health
Facilities Development
Authority, Revenue, (Memorial
Hospital Systems Project)
Series 1997A, (MBIA Insured),
6.00% 06/01/10............... Aaa/AAA 2,982
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 7,185 Harris County, Texas, Toll
Road Revenue Refunding,
Senior Lien, Series 1994,
(FGIC Insured),
5.00% 08/15/16............... Aaa/AAA $ 7,160
3,380 Harris County, Texas, Toll
Road Revenue Refunding,
Senior Lien, Series 1994,
(FGIC Insured),
5.38% 08/15/20............... Aaa/AAA 3,440
7,000 Houston, Texas, Airport
Systems Revenue, Series
1998B, AMT, (FGIC Insured),
5.00% 07/01/25............... Aaa/AAA 6,742
5,500 Houston, Texas, Airport
Systems Revenue, Subordinate
Lien, Series 1998C, (FGIC
Insured),
5.00% 07/01/25............... Aaa/AAA 5,366
4,390 Houston, Texas, GO Refunding,
Series 1992C,
6.00% 03/01/05............... Aa3/AA- 4,645
5,000 Houston, Texas, Independent
School District, GO
Refunding, Series 1993, (PSFG
Insured),
5.40% 08/15/07............... Aaa/AAA 5,223
1,025 Houston, Texas, Public
Improvement GO, Series 1991A,
Prerefunded 04/01/01 @ 100,
6.60% 04/01/05............... Aa3/AA- 1,084
1,305 Houston, Texas, Public
Improvement GO, Series 1991A,
Prerefunded 04/01/01 @ 100,
6.60% 04/01/06............... Aa3/AA- 1,380
3,000 Houston, Texas, Water and
Sewer Systems Revenue
Refunding, Junior Lien,
Series 1997D,
5.00% 12/01/25............... Aaa/AAA 2,926
6,145 Houston, Texas, Water and
Sewer Systems Revenue,
Unrefunded Balance, Prior
Lien, Series 1992B,
5.90% 12/01/03............... A3/A 6,644
2,000 Lewisville, Texas, Independent
School District, GO
Refunding, Series 1992, (PSFG
Insured),
6.00% 08/15/00............... Aaa/NR 2,071
2,000 Lewisville, Texas, Independent
School District, GO
Refunding, Series 1992, (PSFG
Insured),
6.10% 08/15/02............... Aaa/NR 2,148
4,900 Lewisville, Texas, Independent
School District, GO
Refunding, Series 1992, (PSFG
Insured),
6.25% 08/15/05............... Aaa/NR 5,265
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
169
<PAGE> 174
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 500 Lewisville, Texas, Independent
School District, GO, Series
1998, (PSFG Insured),
7.50% 08/15/06............... Aaa/NR $ 602
12,000 Lower Colorado River
Authority, Texas, Revenue
Refunding, Junior Lien,
(Fifth-Supply Project) Series
1993, (AMBAC Insured),
5.30% 01/01/06............... Aaa/AAA 12,663
1,000 Lubbock, Texas, Independent
School District, GO, Series
1991A, (PSFG Insured),
Prerefunded 08/15/00 @ 100,
6.30% 08/15/04............... NR/AAA 1,040
620 Mesquite, Texas, Independent
School District 1, GO
Refunding, Series 1992, (PSFG
Insured), Prerefunded
02/15/02 @ 100,
5.75% 08/15/03............... Aaa/AAA 654
5,000 Mesquite, Texas, Independent
School District 1, GO
Refunding, Series 1993, (PSFG
Insured),
5.30% 08/15/06............... Aaa/AAA 5,274
1,070 Mesquite, Texas, Independent
School District 1, GO
Refunding, Series 1997A,
(PSFG Insured),
5.00% 08/15/07............... Aaa/AAA 1,126
1,380 Mesquite, Texas, Independent
School District 1, GO,
Unrefunded Balance, Series
1992, (PSFG Insured),
5.75% 08/15/03............... Aaa/AAA 1,451
1,080 Midway, Texas, Independent
School District, GO
Refunding, Series 1997, (PSFG
Insured),
4.35%+ 08/01/06.............. Aaa/NR 788
5,000 North Central Texas, Health
Facilities Development
Corporation, Health
Facilities Revenue,
(Presbyterian Healthcare
Residential Project) Series
1996B, (MBIA Insured),
5.50% 06/01/16............... Aaa/AAA 5,351
7,000 North Central, Texas, Health
Facilities Development
Corporation, Revenue
Refunding, (Baylor Health
Care Systems Project) Series
1995,
5.50% 05/15/13............... Aa/AA 7,348
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 2,800 North East, Texas, Independent
School District, GO, Series
1997, (PSFG Insured),
6.50% 02/01/06............... Aaa/AAA $ 3,178
2,375 North East, Texas, Independent
School District, GO, Series
1997, (PSFG Insured),
6.50% 02/01/07............... Aaa/AAA 2,719
1,000 North Texas, Dallas Highway
Authority, North Texas
Highway Systems Revenue,
Series 1998, (FGIC Insured),
4.75% 01/01/17............... Aaa/AAA 970
1,320 Pearland, Texas, Independent
School District, GO
Refunding, Series 1998, (PSFG
Insured),
4.55%+ 02/15/08.............. Aaa/AAA 886
1,245 Pearland, Texas, Independent
School District, GO
Refunding, Series 1998, (PSFG
Insured),
4.64%+ 02/15/09.............. Aaa/AAA 792
5,000 Plano, Texas, Independent
School District GO Refunding,
Series 1994, (PSFG Insured),
4.75% 02/15/07............... Aaa/AAA 5,108
1,835 Plano, Texas, Independent
School District, GO, Series
1995, (PSFG Insured),
7.00% 02/15/05............... Aaa/AAA 2,107
1,000 Port of Houston Authority of
Harris County, Texas, Revenue
Refunding, Series 1992, (MBIA
Insured),
6.30% 05/01/04............... Aaa/AAA 1,065
3,385 Richardson, Texas, GO
Refunding, Series 1998,
5.25% 02/15/08............... Aa2/AA 3,612
3,615 Richardson, Texas, GO
Refunding, Series 1998,
5.50% 02/15/09............... Aa2/AA 3,902
2,000 Round Rock, Texas, Independent
School District, GO
Refunding, Series 1999,
5.00% 08/01/10............... Aaa/AAA 2,072
5,625 Sabine River Authority, Texas,
Water Supply Facilities
Revenue Refunding, (Lake Fork
Project) Series 1991,
6.50% 12/01/00............... NR/AA 5,907
465 San Antonio, Texas, Refunding
GO, Series 1992, Prerefunded
08/01/02 @ 100,
5.50% 08/01/05............... Aa2/AA+ 490
4,185 San Antonio, Texas, Unrefunded
GO, Series 1992,
5.50% 08/01/05............... Aa2/AA+ 4,368
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
170
<PAGE> 175
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 2,050 San Antonio, Texas, Water
Revenue, Unrefunded Balance,
Series 1992, (FGIC Insured),
5.90% 05/15/00............... Aaa/AAA $ 2,110
3,500 Tarrant County, Texas, Health
Facilities Development
Corporation, Health Systems
Revenue, (Texas Health
Resources Systems Project)
Series 1997A, (MBIA Insured),
5.75% 02/15/11............... Aaa/AAA 3,797
3,300 Tarrant County, Texas, Health
Facilities Development
Corporation, Health Systems
Revenue, (Texas Health
Resources Systems Project)
Series 1997A, (MBIA Insured),
5.75% 02/15/08............... Aaa/AAA 3,604
2,200 Tarrant County, Texas, Water
Control and Improvement
District Number 1, Water
Revenue Refunding, Series
1992,
5.70% 03/01/01............... A1/AA 2,287
5,000 Tarrant County, Texas, Water
Control and Improvement
District Number 1, Water
Revenue Refunding, Series
1992, Prerefunded 03/01/01 @
100,
5.90% 03/01/03............... Aaa/AA 5,216
2,300 Texas A & M University, Texas,
Permanent University Fund,
Revenue Refunding, Series
1998,
5.00% 07/01/08............... Aaa/AAA 2,420
1,275 Texas City, Texas, Independent
School District, GO
Refunding, Series 1998, (PSFG
Insured),
5.00% 08/15/08............... Aaa/AAA 1,338
500 Texas State, College Student
Loan Authority, GO, Series
1994, AMT,
5.75% 08/01/11............... Aa2/AA 519
1,000 Texas State, College Student
Loan Authority, GO, Series
1996, AMT,
5.00% 08/01/12............... Aa2/AA 1,008
5,585 Texas State, Department of
Housing and Community
Affairs, Single-Family
Revenue, Series 1997A-1, AMT,
(GNMA/FNMA COLL), (MBIA
Insured),
5.25% 09/01/13............... Aaa/AAA 5,776
5,000 Texas State, GO Refunding,
Series 1992A,
5.80% 10/01/04............... Aa2/AA 5,456
2,000 Texas State, GO Refunding,
Series 1992A,
6.00% 10/01/08............... Aa2/AA 2,258
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 5,000 Texas State, Public Finance
Authority, Building Revenue
Refunding, Series 1992B,
(AMBAC Insured),
6.10% 02/01/04............... Aaa/AAA $ 5,465
1,200 Texas State, Public Finance
Authority, GO Refunding,
Series 1996C,
6.00% 10/01/06............... Aa/AA 1,339
10,000 Texas State, Turnpike
Authority of Dallas, North
Tollway Revenue, (President
George Bush Turnpike) Series
1995, (FGIC Insured),
5.25% 01/01/23............... Aaa/AAA 10,076
3,250 Texas State, Turnpike
Authority of Dallas, North
Tollway Revenue, (Zero Coupon
President George Bush
Turnpike Project) Series
1996, (AMBAC Insured),
4.64%+ 01/01/09.............. Aaa/AAA 2,078
410 Texas State, Veterans Housing
Assistance GO,
Series 1994B-4, AMT,
6.20% 12/01/14............... Aa2/AA 425
1,850 Texas State, Water Development
GO, Series 1997,
5.50% 08/01/07............... Aa2/AA 2,011
5,000 Texas State, Water Development
GO, Series 1997,
5.25% 08/01/28............... Aa2/AA 5,026
1,000 Texas State, Water Development
GO, Series 1997D,
5.00% 08/01/19............... Aa2/AA 996
6,000 Texas, Municipal Power Agency,
Revenue Refunding, Series
1992, (MBIA Insured),
Prerefunded 09/01/02 @ 102,
5.90% 09/01/04............... Aaa/AAA 6,524
15,000 Texas, Municipal Power Agency,
Revenue Refunding, Series
1993, (MBIA Insured),
5.25% 09/01/05............... Aaa/AAA 15,846
2,020 Texas, Water Development
Board, State Revolving Fund
Revenue, Senior Lien, Series
1998A,
4.75% 07/15/20............... Aa1/AAA 1,914
1,335 Texas, Water Resource Finance
Authority, Revenue, Series
1989,
7.40% 08/15/00............... A/A 1,351
4,000 Travis County, Texas, Limited
Tax GO Refunding, Series
1991A, (MBIA Insured),
6.00% 03/01/00............... Aaa/AAA 4,102
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
171
<PAGE> 176
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 3,250 Travis County, Texas, Limited
Tax GO Refunding, Series
1992A, (MBIA Insured),
5.50% 03/01/03............... Aaa/AAA $ 3,446
3,500 Travis County, Texas, Limited
Tax GO Refunding, Series
1992A, (MBIA Insured),
5.60% 03/01/04............... Aaa/AAA 3,706
1,500 Travis County, Texas, Limited
Tax GO Refunding, Series
1992A, (MBIA Insured),
5.75% 03/01/06............... Aaa/AAA 1,584
2,750 Trinity River Authority,
Texas, Regional Wastewater
Systems Revenue, Series 1989,
(AMBAC Insured),
7.00% 08/01/00............... Aaa/AAA 2,878
3,885 Trinity River Authority,
Texas, Ten Mile Revenue,
Series 1992, (AMBAC Insured),
5.70% 08/01/03............... Aaa/AAA 4,110
7,000 University of Texas, Permanent
University Fund, Revenue,
Series 1997, (PUFG Insured),
5.25% 07/01/12............... Aaa/AAA 7,328
2,500 University of Texas,
University Finance Systems
Revenue, Series 1998B,
4.50% 08/15/13............... Aa1/AAA 2,430
3,890 University of Texas,
University Finance Systems
Revenue, Series 1998D,
5.00% 08/15/07............... Aa1/AAA 4,094
4,210 University of Texas,
University Finance Systems
Revenue, Series 1998D,
5.00% 08/15/08............... Aa1/AAA 4,432
--------
345,563
--------
ALASKA -- 0.9%
4,725 North Slope Borough, Alaska,
Capital Appreciation GO,
Series 1995A, (MBIA Insured),
4.39%+ 06/30/06.............. Aaa/AAA 3,449
--------
ARIZONA -- 0.5%
2,100 Coconino County, Arizona,
Unified School District
Number 1, GO Refunding,
Series 1992, (AMBAC Insured),
5.80% 07/01/02............... Aaa/AAA 2,173
--------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
CONNECTICUT -- 1.3%
$ 5,000 Connecticut State, GO, Series
1995A,
5.63% 03/15/09............... Aa3/AA $ 5,376
--------
FLORIDA -- 0.3%
1,000 Florida, Housing Finance
Agency, Multi-Family Housing
Revenue Refunding, (United
Dominion Realty
Trust - Andover Project)
Series 1996E, AMT, Mandatory
Put 05/01/08 @ 100,
6.35% 05/01/26............... NR/BBB+ 1,079
--------
ILLINOIS -- 0.9%
2,500 Illinois State, GO Refunding,
Series 1994,
4.40% 12/01/03............... Aa2/AA 2,558
1,100 Rosemont, Illinois, GO, Series
1991B, (FGIC Insured),
6.40% 02/01/03............... Aaa/AAA 1,167
--------
3,725
--------
MAINE -- 0.5%
1,000 Bucksport, Maine, Solid Waste
Disposal Revenue, (Champion
International Corporation
Project) Series 1985,
6.25% 05/01/10............... Baa1/BBB 1,055
1,000 Maine, Municipal Board Bank,
Revenue, Series 1990D,
7.10% 11/01/01............... Aa3/A+ 1,072
--------
2,127
--------
MICHIGAN -- 1.2%
4,600 Detroit, Michigan, GO
Refunding, Series 1995B,
6.50% 04/01/02............... Baa1/A- 4,904
--------
MISSOURI -- 0.3%
1,135 University of Missouri, Health
Facilities Revenue,
(University of Missouri
Health Systems Project)
Series 1997,
5.75% 11/01/07............... Aa2/AA+ 1,258
--------
NEVADA -- 0.5%
2,000 Nevada, Housing Division,
Single-Family Mortgage
Revenue, Series 1998A-1, AMT,
5.30% 04/01/18............... Aaa/NR 2,010
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
172
<PAGE> 177
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW JERSEY -- 1.4%
$ 5,000 New Jersey State, GO
Refunding, Series 1996E,
6.00% 07/15/09............... Aa1/AA+ $ 5,691
--------
NEW YORK -- 1.0%
3,600 New York City, New York,
Municipal Assistance
Corporation, Revenue, Series
1997J,
5.75% 07/01/03............... Aa2/AA 3,870
--------
SOUTH CAROLINA -- 0.3%
1,000 Greenville Hospital Systems,
South Carolina, Hospital
Facilities Revenue, Series
1996B, (GTY-AGMT),
5.25% 05/01/06............... Aa3/AA 1,056
--------
TENNESSEE -- 0.8%
3,135 Chattanooga-Hamilton County,
Tennessee, Hospital
Authority, Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993, (FSA
Insured),
5.50% 10/01/07............... Aaa/AAA 3,387
--------
WASHINGTON -- 2.0%
3,100 King County, Washington,
School District Number 414,
GO, Series 1995,
5.30% 12/01/05............... Aa1/AA 3,315
2,000 Washington State, GO, Series
1991B, Prerefunded 06/01/01 @
100,
6.30% 06/01/02............... Aa1/AA+ 2,112
2,425 Washington State, GO, Series
1995C,
5.45% 07/01/07............... Aa1/AA+ 2,582
--------
8,009
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $375,148)........................... 393,677
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.1%
(Cost $4,278)
4,278 AIM Tax-Exempt Fund....................... 4,278
--------
TOTAL INVESTMENT COMPANIES
(Cost $4,278)............................ 4,278
--------
TOTAL INVESTMENTS 99.4%
(Cost $379,426*)................. 397,955
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
OTHER ASSETS AND 0.6%
LIABILITIES (NET)................
Receivable for Fund shares sold........... $ 516
Interest receivable....................... 4,599
Prepaid expenses.......................... 5
Payable for Fund shares redeemed.......... (724)
Investment advisory fee payable........... (125)
Administration fee payable................ (51)
Shareholder servicing and distribution
fees payable............................. (4)
Due to custodian.......................... (7)
Distributions payable..................... (1,583)
Accrued Trustees' fees and expenses....... (9)
Accrued expenses and other liabilities.... (92)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).................................... 2,525
--------
NET ASSETS........................ 100.0% $400,480
========
NET ASSETS CONSIST OF:
Undistributed net investment income....... $ 53
Accumulated net realized gain on
investments sold......................... 88
Net unrealized appreciation of
investments.............................. 18,529
Paid-in capital........................... 381,810
--------
NET ASSETS................................ $400,480
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($391,431,216/37,336,304
shares outstanding)...................... $10.48
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($6,909,314/659,062 shares
outstanding)............................. $10.48
------
------
Maximum sales charge...................... 3.25%
Maximum offering price per share.......... $10.83
INVESTOR B SHARES:
Net asset value and offering price per
share** ($2,137,266/203,868 shares
outstanding)............................. $10.48
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,629/251 shares outstanding).. $10.48
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $18,726 and gross
depreciation of $197 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $379,426.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Texas Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
MBIA 14.03%
SEE NOTES TO FINANCIAL STATEMENTS.
173
<PAGE> 178
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.5%
TEXAS -- 87.6%
$ 565 Cass County, Texas, Industrial
Development Corporation,
Environmental Revenue,
(International Paper
Corporation Project) Series
1997A, AMT (GTY-AGMT),
6.25% 04/01/21............... A3/BBB+ $ 601
500 Dallas County, Texas, GO,
Series 1995,
5.25% 08/15/14............... Aaa/AAA 517
750 Dallas-Fort Worth, Texas,
Regional Airport Revenue
Refunding, Series 1994A,
(MBIA Insured),
6.00% 11/01/09............... Aaa/AAA 821
1,000 Goose Creek, Texas,
Consolidated Independent
School District, GO
Refunding, Series 1998, (PSFG
Insured),
5.00% 02/15/10............... Aaa/AAA 1,043
500 Gulf Coast, Texas, Waste
Disposal Authority, Revenue
Refunding, (Houston Light and
Power Company Project) Series
1992A, (MBIA Insured),
6.38% 04/01/12............... Aaa/AAA 546
500 Harris County, Texas, Health
Facilities Development
Authority, Revenue, (Memorial
Hospital Systems Project)
Series 1997A, (MBIA Insured),
6.00% 06/01/10............... Aaa/AAA 561
500 Irving, Texas, Waterworks and
Sewer Revenue, Series 1998,
4.75% 06/15/18............... Aa2/AA 480
500 Lower Neches Valley Authority,
Texas, Industrial Development
Corporation, Revenue
Refunding, (Mobil Oil
Refining Corporation Project)
Series 1997,
5.80% 05/01/22............... Aa2/AA 532
500 Lubbock, Texas, Health
Facilities Development
Revenue, (St. Joseph Health
Systems Project) Series 1998,
5.00% 07/01/06............... Aa3/AA 518
355 North Texas, Dallas Highway
Authority, North Texas
Highway Systems Revenue,
Series 1998, (FGIC Insured),
4.75% 01/01/17............... Aaa/AAA 344
600 Northside, Texas, Independent
School District, GO, Series
1999,
4.75% 08/15/18............... Aaa/AAA 576
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
TEXAS -- (CONTINUED)
$ 800 Pflugerville, Texas,
Independent School District,
GO Refunding, Series 1997,
(PSFG Insured),
5.75% 08/15/10............... Aaa/AAA $ 887
1,000 Red River Authority of Texas,
PCR, (Hoechst Celanese
Corporation Project) Series
1992, AMT,
6.88% 04/01/17............... A2/A+ 1,076
1,180 Santa Fe, Texas, Independent
School District, GO
Refunding, Series 1997, (PSFG
Insured),
4.45%+ 02/15/07.............. Aaa/NR 834
585 Sherman, Texas, Independent
School District, GO, Series
1995, (PSFG Insured),
Prerefunded 02/15/05 @ 100,
6.50% 02/15/20............... Aaa/AAA 661
1,000 Tarrant County, Texas, Health
Facilities Development
Corporation, Health Systems
Revenue, (Harris Methodist
Health Systems Project)
Series 1994, (MBIA-IBC
Insured),
6.00% 09/01/10............... Aaa/AAA 1,137
500 Texas State, College Student
Loan Authority, GO, Series
1994, AMT,
5.75% 08/01/11............... Aa2/AA 519
375 Texas State, Veterans Housing
Assistance GO Refunding,
Series 1994C,
6.40% 12/01/09............... Aa2/AA 400
1,000 Trinity River Authority,
Texas, PCR, (Texas
Instruments Inc. Project)
Series 1996, AMT,
6.20% 03/01/20............... NR/A 1,080
500 University of Texas,
University Finance Systems
Revenue, Series 1995A,
5.20% 08/15/17............... Aa1/AAA 508
1,000 Waller, Texas, Consolidated
Independent School District,
GO, Series 1996, (PSFG
Insured),
5.25% 02/15/21............... Aaa/AAA 1,006
-------
14,647
-------
OHIO -- 6.7%
1,000 Lucas County, Ohio, Hospital
Revenue, (Flower Hospital
Project) Series 1993,
Prerefunded 12/01/04 @ 101,
6.13% 12/01/13............... NR/NR 1,111
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
174
<PAGE> 179
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
PUERTO RICO -- 3.2%
$ 500 Puerto Rico, Industrial
Medical and Environmental
Pollution Control Facilities
Finance Authority, Higher
Education Revenue Refunding,
(Catholic University of
Puerto Rico Project) Series
1993,
5.60% 12/01/07............... NR/BBB- $ 530
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $15,218)............................ 16,288
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.4%
(Cost $393)
393 AIM Tax-Exempt Fund......................... 393
-------
TOTAL INVESTMENTS
(Cost $15,611*).................... 99.9% 16,681
-------
OTHER ASSETS AND
LIABILITIES (NET).................. 0.1%
Cash........................................ $ 1
Receivable for Fund shares sold............. 18
Interest receivable......................... 216
Receivable from investment advisor.......... 35
Payable for Fund shares redeemed............ (132)
Administration fee payable.................. (2)
Shareholder servicing and distribution fees
payable.................................... (9)
Distributions payable....................... (60)
Accrued Trustees' fees and expenses......... (9)
Accrued expenses and other liabilities...... (33)
-------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).......................... 25
-------
NET ASSETS.......................... 100.0% $16,706
=======
NET ASSETS CONSIST OF:
Undistributed net investment income......... $ 31
Accumulated net realized loss on investments
sold....................................... (225)
Net unrealized appreciation of
investments................................ 1,070
Paid-in capital............................. 15,830
-------
NET ASSETS.................................. $16,706
=======
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
(000)
- ---------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($9,393,331/929,344 shares
outstanding)............................... $10.11
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($400,751/39,649 shares
outstanding)............................... $10.11
------
------
Maximum sales charge........................ 4.75%
Maximum offering price per share............ $10.61
INVESTOR B SHARES:
Net asset value and offering price per
share** ($6,828,147/675,510 shares
outstanding)............................... $10.11
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($84,038/8,314 shares
outstanding)............................... $10.11
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $1,086 and gross
depreciation of $16 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $15,611.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Texas Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
MBIA 18.35%
Nations Texas Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 22.99%
SEE NOTES TO FINANCIAL STATEMENTS.
175
<PAGE> 180
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.1%
VIRGINIA -- 91.8%
$ 2,000 Alexandria, Virginia,
Redevelopment and Housing
Authority, Multi-Family
Housing Mortgage Revenue,
(Buckingham Village
Apartments Project) Series
1996A, AMT,
6.05% 07/01/16.............. NR/A $ 2,091
1,000 Amherst, Virginia, Industrial
Development Authority,
Revenue Refunding,
(Georgia-Pacific Corporation
Project) Series 1998, AMT,
5.25% 02/01/11.............. Baa2/NR 1,018
2,900 Arlington County, Virginia,
GO, Series 1991, Prerefunded
12/01/01 @ 102,
5.90% 12/01/03.............. Aaa/AAA 3,123
3,000 Arlington County, Virginia,
GO, Series 1993,
5.00% 07/15/03.............. Aaa/AAA 3,157
2,345 Arlington County, Virginia,
GO, Series 1994,
5.40% 08/01/02.............. Aaa/AAA 2,478
2,000 Arlington County, Virginia,
Industrial Development
Authority, Facilities
Revenue Refunding, (Lee
Gardens Housing Corporation-
Housing Mortgage - Woodbury
Park Apartments Project)
Series 1998A,
5.45% 01/01/29.............. NR/A 1,994
1,000 Arlington County, Virginia,
Industrial Development
Authority, Facilities
Revenue, (The Nature
Conservancy Project) Series
1997A,
5.45% 07/01/27.............. Aa1/NR 1,033
1,000 Arlington County, Virginia,
Industrial Development
Authority, Hospital
Facilities Revenue,
(Arlington Hospital Project)
Series 1991A, Prerefunded
09/01/01 @ 102,
6.65% 09/01/05.............. Aaa/NR 1,089
2,000 Arlington County, Virginia,
Industrial Development
Authority, IDR Refunding,
(Ogden Martin Systems
Project) Series 1998A, (FSA
Insured),
5.25% 01/01/05.............. Aaa/AAA 2,112
3,515 Arlington County, Virginia,
Industrial Development
Authority, Revenue, (Ogden
Martin Systems of Union-
Alexandria/Arlington
Project) Series 1998B, AMT,
(FSA Insured),
5.25% 01/01/09.............. Aaa/AAA 3,679
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,535 Arlington County, Virginia,
Industrial Development
Authority, Revenue, (Ogden
Martin Systems of Union-
Alexandria/Arlington
Project) Series 1998B, AMT,
(FSA Insured),
5.25% 01/01/10.............. Aaa/AAA $ 2,641
3,455 Augusta County, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Augusta Hospital
Corporation Project) Series
1991, Prerefunded 09/01/01 @
102,
7.00% 09/01/21.............. A/NR 3,779
2,000 Brunswick County, Virginia,
Industrial Development
Authority, Correctional
Facility Lease Revenue,
Series 1996, (MBIA Insured),
5.25% 07/01/04.............. Aaa/AAA 2,126
1,000 Charlottesville-Albemarle,
Virginia, Airport Authority,
Revenue Refunding, Series
1995, AMT,
6.13% 12/01/09.............. NR/BBB 1,053
6,195 Chesapeake, Virginia, GO
Refunding, Series 1993,
5.13% 12/01/05.............. Aa3/AA 6,598
1,000 Chesapeake, Virginia, GO,
Series 1992,
5.70% 08/01/01.............. Aa3/AA 1,049
1,000 Chesapeake, Virginia, GO,
Series 1998, (State Aid
Withholding),
4.65% 08/01/11.............. Aa3/AA 1,004
1,525 Chesapeake, Virginia, Public
Improvement GO, Series 1996,
(State Aid Withholding),
5.00% 05/01/03.............. Aa3/AA 1,596
2,000 Chesapeake, Virginia, Water
and Sewer GO, Series 1995A,
(State Aid Withholding),
7.00% 12/01/09.............. Aa3/AA 2,353
2,000 Chesterfield County,
Virginia, GO Refunding,
Series 1991,
5.90% 07/15/02.............. Aaa/AAA 2,138
1,000 Chesterfield County,
Virginia, GO, Series 1990A,
6.50% 01/15/01.............. Aaa/AAA 1,046
1,000 Chesterfield County,
Virginia, GO, Series 1990B,
6.50% 01/01/02.............. Aaa/AAA 1,067
2,120 Chesterfield County,
Virginia, GO, Series 1990B,
Prerefunded 01/01/01 @ 102,
6.70% 01/01/11.............. NR/AAA 2,272
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
176
<PAGE> 181
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 1,000 Chesterfield County,
Virginia, Water and Sewer
Authority, Revenue
Refunding, Series 1992,
6.20% 11/01/05.............. Aa2/AA $ 1,094
2,000 Chesterfield County,
Virginia, Water and Sewer
Authority, Revenue
Refunding, Series 1992A,
5.50% 11/01/00.............. Aa2/AA 2,068
2,020 Chesterfield County,
Virginia, Water and Sewer
Authority, Revenue
Refunding, Series 1992A,
5.63% 11/01/01.............. Aa2/AA 2,125
1,320 Covington-Allegheny County,
Virginia, Industrial
Development Authority, PCR
Refunding, (Westvaco
Corporation Project) Series
1994,
5.90% 03/01/05.............. A1/A 1,451
1,560 Danville, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Danville Regional Medical
Center Project) Series 1998,
(AMBAC Insured),
5.00% 10/01/07.............. Aaa/AAA 1,630
1,695 Danville, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Danville Regional Medical
Center Project) Series 1998,
(AMBAC Insured),
5.00% 10/01/09.............. Aaa/AAA 1,761
1,810 Danville, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Danville Regional Medical
Center Project) Series 1998,
(AMBAC Insured),
5.00% 10/01/10.............. Aaa/AAA 1,872
1,100 Fairfax County, Virginia, GO
Refunding, Series 1993A,
(State Aid Withholding),
4.70% 06/01/00.............. Aaa/AAA 1,119
1,000 Fairfax County, Virginia, GO,
Series 1998, (State Aid
Withholding),
4.80% 04/01/10.............. Aa1/AA+ 1,028
2,000 Fairfax County, Virginia,
Public Improvement GO,
Series 1997A,
6.00% 06/01/04.............. Aaa/AAA 2,200
3,135 Fairfax County, Virginia,
Water and Sewer Authority,
Revenue Refunding, Series
1993, (AMBAC Insured),
5.10% 11/15/04.............. Aaa/AAA 3,322
2,500 Fairfax County, Virginia,
Water Authority, Revenue
Refunding, Series 1997,
5.00% 04/01/21.............. Aa2/AA 2,510
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 5,000 Goochland County, Virginia,
Industrial Development
Authority, (Old Dominion
Electric Cooperative
Project) Series 1998, AMT,
4.25% 12/01/02.............. NR/NR $ 4,983
1,330 Halifax County, Virginia,
Industrial Development
Authority, Exempt Facilities
Revenue, (Old Dominion
Electric Cooperative
Project) Series 1992, AMT,
5.90% 12/01/02.............. NR/A+ 1,409
1,200 Halifax County, Virginia,
Industrial Development
Authority, Hospital Revenue
Refunding, (Halifax Regional
Hospital, Inc. Project)
Series 1998,
4.90% 09/01/10.............. NR/A 1,203
2,500 Hampton Roads, Virginia,
Sanitation District, Capital
Improvement Revenue
Refunding, Series 1993,
4.50% 10/01/02.............. Aa3/AA 2,566
1,000 Hampton, Virginia, Public
Improvement GO Refunding,
Series 1989,
6.50% 01/01/00.............. Aa3/AA 1,025
2,190 Hampton, Virginia, Public
Improvement GO Refunding,
Series 1993C,
4.75% 08/01/05.............. Aa3/AA 2,278
5,000 Hanover County, Virginia,
Industrial Development
Authority, Revenue,
(Memorial Regional Medical
Center Project) Series 1995,
(MBIA Insured),
5.50% 08/15/25.............. Aaa/AAA 5,155
2,105 Henrico County, Virginia,
Industrial Development
Authority, Revenue, Series
1994,
7.50% 08/01/02.............. Aa2/AA 2,339
3,500 Henrico County, Virginia,
Industrial Development
Authority, Solid Waste
Revenue, (Browning-Ferris
Project) Series 1995, AMT,
(GTY-AGMT), Mandatory Put
12/01/05 @ 100,
5.30% 12/01/11.............. Baa1/A- 3,498
1,500 Henrico County, Virginia,
Water and Sewer Authority,
Revenue Refunding, Series
1992,
6.20% 05/01/04.............. Aa2/AAA 1,600
1,915 James City and County,
Virginia, GO, Series 1995,
(State Aid Withholding, FGIC
Insured),
5.00% 12/15/08.............. Aaa/AAA 2,014
1,000 Leesburg, Virginia, GO
Refunding, Series 1993,
5.50% 08/01/06.............. A1/A+ 1,069
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
177
<PAGE> 182
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 2,000 Loudoun County, Virginia,
Improvement GO Refunding,
Series 1993A, (State Aid
Withholding),
5.00% 10/01/02.............. Aa2/AA $ 2,086
1,500 Loudoun County, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Loudoun Hospital Center
Project) Series 1995, (FSA
Insured),
5.50% 06/01/08.............. Aaa/AAA 1,606
1,000 Loudoun County, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Loudoun Hospital Center
Project) Series 1995, (FSA
Insured),
5.60% 06/01/09.............. Aaa/AAA 1,069
5,000 Loudoun County, Virginia,
Industrial Development
Authority, Revenue, (Air
Force Retired Officers -
Falcons Landing Project)
Series 1994A, Prerefunded
11/01/04 @ 103,
8.75% 11/01/24.............. Aaa/AAA 6,286
1,000 Loudoun County, Virginia,
Sanitation Authority, Water
and Sewer Revenue Refunding,
Series 1992, (FGIC Insured),
5.80% 01/01/01.............. Aaa/AAA 1,039
1,500 Louisa, Virginia, Industrial
Development Authority, Solid
Waste and Sewer Disposal
Revenue, (Virginia Electric
and Power Company Project)
Series 1997A, AMT, Mandatory
Put 03/31/02 @ 100,
5.15% 04/01/22.............. A3/A1 1,535
1,105 Lynchburg, Virginia,
Industrial Development
Authority, Health Revenue
Refunding, (Centra Health
Inc. Project) Series 1998
5.20% 01/01/28.............. A1/A+ 1,085
1,140 Lynchburg, Virginia, Public
Improvement GO, Series 1997,
5.40% 05/01/17.............. Aa3/AA 1,184
1,965 Medical College of Virginia,
Hospital Authority, General
Revenue, Series 1998, (MBIA
Insured),
5.00% 07/01/09.............. Aaa/AAA 2,030
1,000 Medical College of Virginia,
Hospital Authority, General
Revenue, Series 1998, (MBIA
Insured),
4.80% 07/01/11.............. Aaa/AAA 999
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 5,000 Newport News, Virginia,
Public Improvement GO
Refunding, Series 1993B,
(State Aid Withholding),
5.20% 11/01/04.............. Aa2/AA $ 5,322
1,000 Newport News, Virginia, Water
and Sewer Authority, GO
Refunding, Series 1993B,
(State Aid Withholding),
5.10% 11/01/03.............. Aa2/AA 1,055
1,020 Newport News, Virginia, Water
and Sewer Authority, GO,
Series 1992A,
5.50% 06/01/01.............. Aa2/AA 1,062
1,095 Newport News, Virginia, Water
and Sewer Authority, GO,
Series 1992A,
5.60% 06/01/02.............. Aa2/AA 1,157
1,000 Norfolk, Virginia, Capital
Improvement GO Refunding,
Series 1992A, Prerefunded
02/01/01 @ 102,
5.90% 02/01/06.............. A1/AA 1,060
1,840 Norfolk, Virginia, Capital
Improvement GO, Series 1997,
(FGIC Insured),
5.38% 06/01/05.............. Aaa/AAA 1,975
2,250 Norfolk, Virginia,
Redevelopment and Housing
Authority, Educational
Facilities Revenue,
(Tidewater Community College
Campus Project) Series 1995,
5.88% 11/01/15.............. Aa/AA 2,412
2,000 Norfolk, Virginia, Water
Revenue, Series 1995, (MBIA
Insured),
5.70% 11/01/10.............. Aaa/AAA 2,159
1,000 Portsmouth, Virginia, GO
Refunding, Series 1993,
5.00% 08/01/02.............. A3/AA- 1,040
1,000 Portsmouth, Virginia, GO
Refunding, Series 1993,
5.25% 08/01/04.............. A3/AA- 1,062
1,750 Portsmouth, Virginia, Public
Improvement, GO, Series
1991, Prerefunded 08/01/00 @
102,
6.70% 08/01/03.............. NR/AA- 1,860
1,735 Portsmouth, Virginia, Public
Improvement, GO, Series
1991, Prerefunded 08/01/00 @
102,
6.80% 08/01/06.............. NR/AA- 1,847
1,000 Portsmouth, Virginia, Public
Improvement, GO, Series
1991, Prerefunded 08/01/00 @
102,
6.80% 08/01/09.............. NR/AA- 1,064
1,465 Prince William County,
Virginia, Improvement GO
Refunding, Series 1992A,
6.20% 12/01/10.............. Aa2/AA 1,561
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
178
<PAGE> 183
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 1,775 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue Refunding,
(Potomac Hospital
Corporation Project) Series
1995,
6.55% 10/01/05.............. Aaa/NR $ 1,988
3,500 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue Refunding,
(Potomac Hospital
Corporation Project) Series
1998, (FSA Insured),
5.00% 10/01/18.............. Aaa/NR 3,436
1,300 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue Refunding,
(Prince William Hospital
Project) Series 1993,
5.63% 04/01/12.............. A2/NR 1,357
1,000 Prince William County,
Virginia, Park Authority,
Water and Sewer Systems,
Revenue Refunding, Series
1994,
6.30% 10/15/07.............. NR/A- 1,113
3,000 Prince William County,
Virginia, Service Authority,
Revenue Refunding, Series
1993, (FGIC Insured),
5.00% 07/01/21.............. Aaa/AAA 2,937
1,000 Richmond, Virginia, GO
Refunding, Series 1995B,
(FGIC Insured, State Aid
Withholding),
5.00% 01/15/21.............. Aaa/AAA 986
1,000 Richmond, Virginia,
Metropolitan Expressway
Authority, Revenue
Refunding, Series 1992A,
(FGIC Insured),
5.65% 07/15/00.............. Aaa/AAA 1,030
2,300 Richmond, Virginia, Public
Improvement GO Refunding,
Series 1993A, (State Aid
Withholding),
6.50% 01/15/02.............. A1/AA 2,466
1,000 Richmond, Virginia, Public
Improvement GO, Series
1991A, Prerefunded 01/15/01
@ 102,
6.20% 01/15/03.............. Aaa/AA 1,064
1,000 Richmond, Virginia, Public
Improvement GO, Series
1991A, Prerefunded 01/15/01
@ 102,
6.70% 01/15/11.............. Aaa/AA 1,073
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,430 Richmond, Virginia, Public
Improvement GO, Series
1993B, (State Aid
Withholding),
5.50% 07/15/09.............. A1/AA $ 1,550
1,115 Roanoke County, Virginia,
IDR, (Hollins College
Project) Series 1998,
5.20% 03/15/17.............. NR/A 1,118
1,000 Roanoke, Virginia, Public
Improvement GO Refunding,
Series 1992B,
5.80% 08/01/00.............. Aa3/AA 1,033
3,295 Roanoke, Virginia, Public
Improvement GO Refunding,
Series 1992B, Prerefunded
08/01/01 @ 100.5,
6.00% 08/01/03.............. Aa3/AA 3,487
1,100 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA Insured),
4.38% 07/15/05.............. Aaa/AAA 1,124
1,900 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA Insured),
4.40% 07/15/06.............. Aaa/AAA 1,935
2,000 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA Insured),
4.40% 07/15/07.............. Aaa/AAA 2,027
1,580 Spotsylvania County,
Virginia, Public Improvement
GO, Series 1992,
5.20% 07/15/01.............. A1/A+ 1,637
2,320 Spotsylvania County,
Virginia, Public Improvement
GO, Series 1992, Prerefunded
07/15/02 @ 102,
5.88% 07/15/09.............. A1/A+ 2,508
2,535 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue, (Mary
Baldwin College Project)
Series 1996,
6.60% 11/01/14.............. NR/NR 2,732
1,110 Suffolk, Virginia, GO
Refunding, Series 1993,
5.40% 08/01/04.............. A1/A+ 1,187
1,500 Suffolk, Virginia, GO
Refunding, Series 1993,
5.75% 08/01/08.............. A1/A+ 1,625
2,000 Upper Occoquan, Virginia,
Sewer Authority, Regional
Sewer Revenue, Series 1991,
(MBIA Insured), Prerefunded
07/01/01 @ 102,
6.25% 07/01/05.............. Aaa/AAA 2,153
1,000 Virginia Beach, Virginia, GO
Refunding, Series 1992,
5.55% 02/01/01.............. Aa2/AA 1,036
2,300 Virginia Beach, Virginia, GO
Refunding, Series 1993,
5.40% 07/15/08.............. Aa2/AA 2,492
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
179
<PAGE> 184
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 1,000 Virginia Beach, Virginia, GO,
Series 1989A,
6.90% 10/01/00.............. Aa2/AA $ 1,037
1,000 Virginia Beach, Virginia, GO,
Series 1990A,
6.85% 06/01/01.............. Aa2/AA 1,057
1,000 Virginia Beach, Virginia, GO,
Series 1990A, Prerefunded
06/01/00 @ 102,
6.95% 06/01/06.............. NR/NR 1,060
4,100 Virginia Commonwealth,
Transportation Board
Transportation Revenue
Refunding, (U.S. Route 58
Corridor Program) Series
1997C,
5.13% 05/15/19.............. Aa2/AA 4,097
1,340 Virginia Port Authority,
Virginia, Commonwealth Port
Fund Revenue, Series 1996,
AMT,
5.75% 07/01/02.............. Aa2/AA 1,421
1,000 Virginia Port Authority,
Virginia, Commonwealth Port
Fund Revenue, Series 1997,
AMT, (MBIA Insured),
5.65% 07/01/17.............. Aaa/AAA 1,051
3,500 Virginia State, GO Refunding,
Series 1993B,
4.80% 06/01/07.............. Aaa/AAA 3,632
1,175 Virginia State, Higher
Educational Institutions GO,
Series 1991A,
6.00% 06/01/01.............. Aaa/AAA 1,204
1,695 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series 1995D-3,
6.10% 01/01/15.............. Aa1/AA+ 1,801
1,770 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series 1998D-1,
AMT,
4.30% 01/01/02.............. Aa1/AA+ 1,773
1,000 Virginia State, Housing
Development Authority,
Multi-Family Housing
Revenue, Series 1998B, AMT,
4.40% 11/01/03.............. Aa1/AA+ 1,007
2,000 Virginia State, Public
Building Authority, Building
Revenue Refunding,
(Correctional Facilities
Project) Series 1992A,
5.80% 08/01/02.............. Aa/AA 2,112
5,000 Virginia State, Public
Building Authority, Public
Revenue Refunding, Series
1998A,
5.00% 08/01/07.............. Aa2/AA 5,261
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 3,000 Virginia State, Public School
Authority, Revenue
Refunding, (School Financing
Project) Series 1997-1,
5.25% 08/01/10.............. Aa1/AA+ $ 3,214
1,480 Virginia State, Public School
Authority, Revenue
Refunding, Series 1993B,
(State Aid Withholding),
5.10% 01/01/05.............. Aa1/AA 1,562
1,000 Virginia State, Public School
Authority, Revenue, Series
1991A, Prerefunded 08/01/01
@ 102,
6.50% 08/01/08.............. Aa1/AA 1,083
2,195 Virginia State, Public School
Authority, Revenue, Series
1993A, (State Aid
Withholding),
5.40% 01/01/08.............. Aa1/AA 2,316
2,970 Virginia State, Resource
Authority, Sewer Systems
Revenue Refunding,
(Harrisonburg-Rockingham
Project) Series 1998,
5.00% 05/01/18.............. NR/AA 2,941
1,000 Virginia State, Resource
Authority, Sewer Systems
Revenue, (Hopewell Regional
Wastewater Facilities
Project) Series 1995A, AMT,
6.00% 10/01/15.............. NR/AA 1,072
2,470 Virginia State, Resource
Authority, Water and Sewer
Systems Revenue Refunding,
(Washington County Service
Project) Series 1993,
5.15% 10/01/07.............. NR/AA 2,597
1,020 Virginia State, Resource
Authority, Water and Sewer
Systems Revenue, (Suffolk
Project) Series 1996A,
5.50% 04/01/17.............. NR/AA 1,072
1,000 Virginia State, Resource
Authority, Water and Sewer
Systems Revenue, (Sussex
Service Authority Project)
Series 1998,
4.63% 10/01/18.............. NR/AA 944
2,000 Virginia State, Resource
Authority, Water and Sewer
Systems Revenue, (Sussex
Service Authority Project)
Series 1998,
4.75% 10/01/25.............. NR/AA 1,880
4,345 Virginia State,
Transportation Board
Authority, Transportation
Contract Revenue, (Northern
Virginia Transportation
District Project) Series
1996A,
5.13% 05/15/21.............. Aa2/AA 4,308
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
180
<PAGE> 185
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
VIRGINIA -- (CONTINUED)
$ 3,150 Virginia State,
Transportation Board
Authority, Transportation
Revenue Refunding, (Route 28
Project) Series 1992,
6.00% 04/01/02.............. Aa/AA $ 3,353
3,000 Virginia State,
Transportation Board
Authority, Transportation
Revenue Refunding, (U.S.
Route 58 Corridor Program)
Series 1993A,
4.90% 05/15/03.............. Aa2/AA 3,125
5,390 Virginia State,
Transportation Board
Authority, Transportation
Revenue Refunding, (U.S.
Route 58 Corridor Program)
Series 1993A,
5.50% 05/15/09.............. Aa2/AA 5,768
2,105 Virginia State,
Transportation Board
Authority, Transportation
Revenue, (U.S. Route 58
Corridor Development
Project) Series 1993B,
5.10% 05/15/05.............. Aa2/AA 2,226
2,350 Virginia, Biotechnology
Research Park Authority,
Lease Revenue,
(Biotechnology Two Project)
Series 1996,
5.75% 09/01/05.............. Aa/AA 2,578
2,000 Virginia, College Building
Authority, Educational
Facilities Revenue
Refunding, (University of
Richmond Project) Series
1992,
5.63% 11/01/02.............. NR/AA 2,077
1,570 Virginia, College Building
Authority, Educational
Facilities Revenue, (Hampden
- Sydney College Project)
Series 1992, Prerefunded
09/01/01 @ 102,
6.60% 09/01/16.............. NR/AAA 1,708
2,000 Virginia, College Building
Authority, Facilities
Revenue, (Equipment Leasing
Program) Series 1997,
5.00% 02/01/02.............. Aa2/AA 2,069
1,000 Virginia, Commonwealth Port
Authority Revenue, Series
1996, AMT,
4.40% 07/01/99.............. Aa2/AA 1,003
5,000 Virginia, Southeastern Public
Service Authority, Revenue
Refunding, Series 1993A,
(MBIA Insured),
5.10% 07/01/08.............. Aaa/AAA 5,258
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Washington County, Virginia,
Industrial Development
Authority, Hospital Facility
Revenue Refunding, (Johnson
Memorial Hospital Project)
Series 1995,
5.63% 07/01/02.............. A2/NR $ 1,032
1,000 Washington County, Virginia,
Industrial Development
Authority, Hospital Facility
Revenue Refunding, (Johnston
Memorial Hospital Project)
Series 1995, Prerefunded
07/01/05 @ 102,
6.00% 07/01/14.............. A2/NR 1,116
--------
271,279
--------
ALASKA -- 1.7%
1,000 Alaska, Student Loan
Corporation, Student Loan
Revenue, Series 1995A, AMT,
(AMBAC Insured),
5.25% 07/01/03.............. Aaa/AAA 1,044
6,500 North Slope Borough, Alaska,
Capital Appreciation GO,
Series 1998A, (MBIA
Insured),
4.68%+ 06/30/09............. Aaa/AAA 4,045
--------
5,089
--------
DISTRICT OF COLUMBIA -- 1.0%
1,000 Metropolitan Washington,
District of Columbia,
Airport Authority, Virginia
General Airport Revenue,
Series 1994A, AMT, (MBIA
Insured),
5.20% 10/01/02.............. Aaa/AAA 1,044
1,000 Metropolitan Washington,
District of Columbia,
Airport Authority, Virginia
General Airport Revenue,
Series 1997B, AMT, (FGIC
Insured),
5.75% 10/01/03.............. Aaa/AAA 1,073
1,000 Washington, District of
Columbia, Convention Center
Revenue, Senior Lien, Series
1998, (AMBAC Insured),
4.75% 10/01/28.............. Aaa/AAA 928
--------
3,045
--------
MAINE -- 0.9%
2,500 Baileyville, Maine, PCR,
(Georgia-Pacific Corporation
Project) Series 1998,
4.75% 06/01/05.............. Baa2/NR 2,535
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
181
<PAGE> 186
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- 0.7%
$2,000... New York City, New York,
Municipal Water Finance
Authority, Sewer Systems
Revenue, Series 1998D, 5.00%
06/15/04.................... A1/A $ 2,096
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $271,456).......................... 284,044
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.9%
(Cost $8,510)
8,510 AIM Tax-Exempt Fund........................ 8,510
--------
TOTAL INVESTMENTS 99.0%
(Cost $279,966*)................... 292,554
--------
OTHER ASSETS AND 1.0%
LIABILITIES (NET)..................
Cash....................................... $ 1
Receivable for Fund shares sold............ 342
Interest receivable........................ 4,481
Prepaid expenses........................... 4
Payable for Fund shares redeemed........... (608)
Investment advisory fee payable............ (87)
Administration fee payable................. (37)
Shareholder servicing and distribution fees
payable................................... (25)
Distributions payable...................... (1,086)
Accrued Trustees' fees and expenses........ (19)
Accrued expenses and other liabilities..... (92)
--------
TOTAL OTHER ASSETS AND LIABILITIES (NET)... 2,874
--------
NET ASSETS.......................... 100.0% $295,428
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 146
Accumulated net realized gain on
investments sold.......................... 16
Net unrealized appreciation of
investments............................... 12,588
Paid-in capital............................ 282,678
--------
NET ASSETS................................. $295,428
========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
(000)
- ---------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($227,299,431/20,701,984
shares outstanding)....................... $10.98
------
------
INVESTOR A SHARES:
Net asset value and redemption price per
share ($56,732,814/5,167,192 shares
outstanding).............................. $10.98
------
------
Maximum sales charge....................... 3.25%
Maximum offering price per share........... $11.35
INVESTOR B SHARES:
Net asset value and offering price per
share** ($10,295,833/937,733 shares
outstanding).............................. $10.98
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,099,783/100,160 shares
outstanding).............................. $10.98
------
------
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $12,897 and gross
depreciation of $309 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $279,966.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
Nations Virginia Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 1999 (as a percentage of net
assets):
Water Revenue 12.43%
Transportation Revenue 10.44%
SEE NOTES TO FINANCIAL STATEMENTS.
182
<PAGE> 187
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 93.4%
VIRGINIA -- 91.5%
$1,000 Arlington County, Virginia,
Industrial Development
Authority, Facilities
Revenue Refunding, (Lee
Gardens Housing Corporation-
Housing Mortgage - Woodbury
Park Apartments Project)
Series 1998A,
5.45% 01/01/29.............. NR/A $ 997
1,000 Augusta County, Virginia,
Industrial Development
Authority, Hospital Revenue
Refunding, (Augusta Hospital
Corporation Project) Series
1993, (AMBAC Insured),
5.50% 09/01/15.............. Aaa/AAA 1,033
500 Covington-Allegheny County,
Virginia, IDR Refunding,
(Westvaco Corporation
Project) Series 1994,
6.65% 09/01/18.............. A1/A 548
1,000 Danville, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Danville Regional Medical
Center Project) Series 1998,
(AMBAC Insured),
5.25% 10/01/28.............. Aaa/AAA 1,024
500 Fairfax County, Virginia,
Industrial Development
Authority, Health Care
Revenue Refunding, (Inova
Health Systems Project)
Series 1996,
5.50% 08/15/10.............. Aa2/AA 534
1,000 Fairfax County, Virginia,
Water and Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.50% 11/15/13.............. Aaa/AAA 1,061
500 Fairfax County, Virginia,
Water Authority, Revenue
Refunding, Series 1997,
5.00% 04/01/21.............. Aa2/AA 502
800 Giles County, Virginia,
Industrial Development
Authority, Exempt Facilities
Revenue, (Hoechst Celanese
Corporation Project) Series
1995, AMT,
5.95% 12/01/25.............. A2/A+ 823
400 Halifax County, Virginia,
Industrial Development
Authority, Hospital Revenue
Refunding, (Halifax Regional
Hospital, Inc. Project)
Series 1998,
5.25% 09/01/17.............. NR/A 399
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 500 Hanover County, Virginia,
Industrial Development
Authority, Revenue, (Bon
Secours Health Systems
Project) Series 1995, (MBIA
Insured),
5.50% 08/15/25.............. Aaa/AAA $ 516
500 Henrico County, Virginia,
Industrial Development
Authority, Public Facilities
Lease Revenue, Series 1994,
7.00% 08/01/13.............. Aa2/AA 580
500 Henry County, Virginia, GO,
Series 1994,
5.75% 07/15/07.............. A/A 543
700 James City and County,
Virginia, GO, Series 1995,
(State Aid Withholding, FGIC
Insured),
5.25% 12/15/14.............. Aaa/AAA 724
765 Loudoun County, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Loudoun Hospital Center
Project) Series 1995, (FSA
Insured),
5.60% 06/01/09.............. Aaa/AAA 818
500 Loudoun County, Virginia,
Industrial Development
Authority, Hospital Revenue,
(Loudoun Hospital Center
Project) Series 1995, (FSA
Insured),
5.80% 06/01/20.............. Aaa/AAA 529
500 Peninsula Ports Authority,
Virginia, Health Care
Facilities Revenue
Refunding, (Riverside Health
System Project) Series
1992A, Prerefunded 07/01/02
@ 102,
6.63% 07/01/18.............. Aa2/AA 552
500 Pittsylvania County,
Virginia, Public Improvement
GO, Series 1994,
5.85% 07/01/08.............. A3/A 553
1,000 Prince William County,
Virginia, Industrial
Development Authority, Lease
Revenue, (ATCC Project)
Series 1996,
6.00% 02/01/14.............. A2/NR 1,053
500 Prince William County,
Virginia, Park Authority
Revenue, Series 1994,
6.88% 10/15/16.............. NR/A- 562
500 Richmond, Virginia, GO
Refunding, Series 1995B,
(FGIC Insured, State Aid
Withholding),
5.00% 01/15/21.............. Aaa/AAA 493
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
183
<PAGE> 188
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
- -----------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES --(CONTINUED)
VIRGINIA -- (CONTINUED)
$ 800 Richmond, Virginia,
Metropolitan Expressway
Authority, Revenue
Refunding, Series 1992B,
(FGIC Insured),
6.25% 07/15/22.............. Aaa/AAA $ 868
1,390 Rivanna, Virginia, Water and
Sewer Authority, Regional
Water and Sewer Systems,
Revenue Refunding, Series
1991,
6.45% 10/01/12.............. Aa3/NR 1,499
1,000 Roanoke County, Virginia,
Water Systems Revenue
Refunding, Series 1993,
(FGIC Insured),
5.00% 07/01/21.............. Aaa/AAA 979
500 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA Insured),
4.50% 07/15/08.............. Aaa/AAA 508
1,000 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue, (Mary
Baldwin College Project)
Series 1996,
6.60% 11/01/14.............. NR/NR 1,077
500 Upper Occoquan, Virginia,
Sewer Authority, Regional
Sewer Revenue, Series 1995A,
(MBIA Insured),
5.00% 07/01/25.............. Aaa/AAA 492
500 Virginia Beach, Virginia,
Public Improvement GO
Refunding, Series 1994,
(State Aid Withholding),
5.75% 11/01/08.............. Aa2/AA 550
1,000 Virginia Commonwealth,
Transportation Board,
Transportation Program
Revenue, (Oak Grove
Connector Project) Series
1997A,
5.25% 05/15/22.............. Aa2/AA 1,005
555 Virginia Commonwealth,
Transportation Program
Revenue Refunding, (Northern
Virginia Transportation
District Program) Series
1997B,
5.00% 05/15/14.............. Aa2/AA 562
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL MOODY'S/S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
<C> <S> <C> <C>
VIRGINIA -- (CONTINUED)
$ 640 Virginia State, Public School
Authority, Revenue, Series
1994A, (State Aid
Withholding),
6.13% 08/01/11.............. Aa1/AA $ 708
820 Virginia State, Resource
Authority, Sewer Systems
Revenue Refunding,
(Harrisonburg-Rockingham
Project) Series 1998,
4.70% 05/01/11.............. NR/AA 825
750 Virginia State, Resource
Authority, Sewer Systems
Revenue, (Hopewell Regional
Wastewater Facilities
Project) Series 1995A, AMT,
6.00% 10/01/15.............. NR/AA 804
500 Virginia State, Resource
Authority, Water and Sewer
Systems Revenue, (Fauquier
County Water and Sanitation
Project) Series 1994C,
6.13% 05/01/14.............. NR/AA 548
800 West Point, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Revenue,
(Chesapeake Corporation
Project) Series 1994A, AMT,
6.38% 03/01/19.............. Baa3/BBB 840
--------
25,109
--------
OHIO -- 1.9%
500 Dayton, Ohio, Special
Facilities Revenue, (Air
Freight Corporation Project)
Series 1988D, AMT,
6.20% 10/01/09.............. NR/BBB 534
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $24,117)........................... 25,643
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
184
<PAGE> 189
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 3.2%
(Cost $871)
871 AIM Tax Exempt Fund................. $ 871
--------
TOTAL INVESTMENTS 96.6%
(Cost $24,988*).................... 26,514
--------
OTHER ASSETS AND 3.4%
LIABILITIES (NET)..................
Cash....................................... $ 1
Receivable for investment securities
sold...................................... 644
Receivable for Fund shares sold............ 187
Interest receivable........................ 436
Receivable from investment advisor......... 44
Payable for Fund shares redeemed........... (195)
Administration fee payable................. (3)
Shareholder servicing and distribution fees
payable................................... (19)
Distributions payable...................... (101)
Accrued Trustees' fees and expenses........ (9)
Accrued expenses and other liabilities..... (40)
--------
TOTAL OTHER ASSETS
AND LIABILITIES (NET)..................... 945
--------
NET ASSETS.......................... 100.0% $ 27,459
========
NET ASSETS CONSIST OF:
Undistributed net investment income........ $ 7
Accumulated net realized loss
on investments sold....................... (478)
Net unrealized appreciation of
investments............................... 1,526
Paid-in capital............................ 26,404
--------
NET ASSETS................................. $ 27,459
========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($12,991,973/1,300,606
shares outstanding)....................... $9.99
-----
-----
INVESTOR A SHARES:
Net asset value and redemption price per
share ($965,483/96,654 shares
outstanding).............................. $9.99
-----
-----
Maximum sales charge....................... 4.75%
Maximum offering price per share........... $10.49
INVESTOR B SHARES:
Net asset value and offering price per
share** ($13,498,836/1,351,316 shares
outstanding).............................. $9.99
-----
-----
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,887/289 shares outstanding)... $9.99
-----
-----
</TABLE>
- ---------------
* Federal Income Tax Information: Net unrealized appreciation of investment
securities was comprised of gross appreciation of $1,541 and gross
depreciation of $15 for Federal income tax purposes. At March 31, 1999, the
aggregate cost of securities for Federal income tax purposes was $24,988.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
Nations Virginia Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
AMBAC 11.36%
Nations Virginia Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 1999 (as a percentage of net assets):
Water Revenue 25.31%
Hospital Revenue 18.30%
Industrial Development Revenue/
Pollution Control Revenue 10.36%
SEE NOTES TO FINANCIAL STATEMENTS.
185
<PAGE> 190
NATIONS FUNDS
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMBAC-TCRS American Municipal Bond Assurance
Corporation -- Transferable Custodial Receipts
AMT Alternative Minimum Tax
CGIC Capital Guaranty Insurance Corporation
FGIC Financial Guaranty Insurance Company
FHLMC COLL Federal Home Loan Mortgage Corporation
collateral
FHA Federal Housing Authority
FNMA COLL Federal National Mortgage Association
collateral
FSA Financial Security Assurance
GO General Obligation
GNMA COLL Government National Mortgage Association
collateral
GTY-AGMT Guarantee Agreement
GTD STD LNS Guaranteed Student Loans
IBC Insured Bond Certificate
IDA Industrial Development Authority
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
NR Not Rated
PCR Pollution Control Revenue
PSF-GTD Permanent School Fund Guaranteed
PUFG Permanent University Fund Guarantee
SCSDE South Carolina School District Enhancement
SCH BD GTY School Bond Guarantee
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
186
<PAGE> 191
[THIS PAGE INTENTIONALLY LEFT BLANK.]
187
<PAGE> 192
NATIONS FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
FLORIDA
SHORT-TERM INTERMEDIATE INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
INCOME BOND INCOME BOND
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $5,328 $46,216 $33,503 $12,054
------ ------- ------- -------
EXPENSES:
Investment advisory fee..................................... 591 4,575 3,783 1,170
Administration fee.......................................... 122 944 651 242
Transfer agent fees......................................... 61 378 271 79
Custodian fees.............................................. 16 75 61 24
Legal and audit fees........................................ 45 83 71 54
Trustees' fees and expenses................................. 15 15 15 15
Amortization of organization costs.......................... 4 3 -- --
Interest expense............................................ 2 --* -- --
Registration and filing fees................................ 55 56 115 12
Other....................................................... 35 76 80 96
------ ------- ------- -------
Subtotal................................................ 946 6,205 5,047 1,692
Shareholder servicing and distribution fees:
Investor A Shares......................................... 74 30 59 32
Investor B Shares......................................... 136 23 150 43
Investor C Shares......................................... 33 16 22 12
------ ------- ------- -------
Total expenses.......................................... 1,189 6,274 5,278 1,779
Fees waived and/or expenses reimbursed by investment
advisor, administrator, and/or distributor................ (591) (1,648) (1,303) (539)
------ ------- ------- -------
Net expenses............................................ 598 4,626 3,975 1,240
------ ------- ------- -------
NET INVESTMENT INCOME....................................... 4,730 41,590 29,528 10,814
------ ------- ------- -------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... 278 5,314 2,167 292
Net change in unrealized appreciation/(depreciation) of
investments............................................... 286 406 970 29
------ ------- ------- -------
Net realized and unrealized gain/(loss) on investments...... 564 5,720 3,137 321
------ ------- ------- -------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $5,294 $47,310 $32,665 $11,135
====== ======= ======= =======
</TABLE>
- ---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
188
<PAGE> 193
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA MARYLAND NORTH CAROLINA
FLORIDA INTERMEDIATE GEORGIA INTERMEDIATE MARYLAND INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND BOND
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 8,040 $7,804 $1,095 $ 9,119 $1,467 $10,191
------- ------ ------ ------- ------ -------
893 778 128 910 180 1,006
154 161 22 188 31 208
70 62 16 73 18 69
17 18 7 20 8 22
54 50 33 73 37 55
15 15 15 15 15 15
-- -- -- -- -- --
--* 1 -- -- -- --
31 6 1 34 9 9
31 51 31 29 22 52
------- ------ ------ ------- ------ -------
1,265 1,142 253 1,342 320 1,436
157 44 4 41 5 24
167 78 107 57 137 68
--* 9 --* 6 --* 1
------- ------ ------ ------- ------ -------
1,589 1,273 364 1,446 462 1,529
(427) (390) (143) (453) (162) (445)
------- ------ ------ ------- ------ -------
1,162 883 221 993 300 1,084
------- ------ ------ ------- ------ -------
6,878 6,921 874 8,126 1,167 9,107
------- ------ ------ ------- ------ -------
891 667 52 1,039 60 609
(346) 119 160 (51) 66 84
------- ------ ------ ------- ------ -------
545 786 212 988 126 693
------- ------ ------ ------- ------ -------
$ 7,423 $7,707 $1,086 $ 9,114 $1,293 $ 9,800
======= ====== ====== ======= ====== =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
189
<PAGE> 194
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
SOUTH CAROLINA
NORTH CAROLINA INTERMEDIATE SOUTH CAROLINA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND
--------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $1,944 $14,203 $1,206
------ ------- ------
EXPENSES:
Investment advisory fee..................................... 226 1,352 139
Administration fee.......................................... 39 281 24
Transfer agent fees......................................... 22 83 17
Custodian fees.............................................. 8 28 7
Legal and audit fees........................................ 39 58 35
Trustees' fees and expenses................................. 15 15 15
Amortization of organization costs.......................... -- -- --
Interest expense............................................ --* 1 --
Registration and filing fees................................ 4 7 4
Other....................................................... 22 40 32
------ ------- ------
Subtotal................................................ 375 1,865 273
Shareholder servicing and distribution fees:
Investor A Shares......................................... 4 41 2
Investor B Shares......................................... 253 73 107
Investor C Shares......................................... --* 19 --*
------ ------- ------
Total expenses.......................................... 632 1,998 382
Fees waived and/or expenses reimbursed by investment
advisor, administrator, and/or distributor................ (189) (535) (150)
------ ------- ------
Net expenses............................................ 443 1,463 232
------ ------- ------
NET INVESTMENT INCOME....................................... 1,501 12,740 974
------ ------- ------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... 53 1,038 28
Net change in unrealized appreciation/(depreciation) of
investments............................................... 149 (235) 45
------ ------- ------
Net realized and unrealized gain/(loss) on investments...... 202 803 73
------ ------- ------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $1,703 $13,543 $1,047
====== ======= ======
</TABLE>
- ---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
190
<PAGE> 195
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE TEXAS VIRGINIA
INTERMEDIATE TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND BOND
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$2,585 $ 566 $20,330 $ 891 $13,459 $1,440
------ ----- ------- ----- ------- ------
260 65 1,971 103 1,335 164
54 11 409 18 277 28
31 9 113 13 123 18
10 7 37 6 23 8
43 29 63 32 55 34
15 15 15 15 15 15
-- 1 -- -- -- --
-- -- -- -- --* --*
7 5 15 4 23 4
21 26 50 23 18 31
------ ----- ------- ----- ------- ------
441 168 2,673 214 1,869 302
22 2 10 1 141 3
28 47 22 78 100 134
--* 1 1 --* 11 --*
------ ----- ------- ----- ------- ------
491 218 2,706 293 2,111 439
(192) (110) (706) (122) (582) (159)
------ ----- ------- ----- ------- ------
299 108 2,000 171 1,529 280
------ ----- ------- ----- ------- ------
2,286 459 18,330 720 11,920 1,160
------ ----- ------- ----- ------- ------
235 132 1,846 339 279 138
35 (50) (900) (219) 784 (23)
------ ----- ------- ----- ------- ------
270 82 946 120 1,063 115
------ ----- ------- ----- ------- ------
$2,556 $ 541 $19,276 $ 840 $12,983 $1,275
====== ===== ======= ===== ======= ======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
191
<PAGE> 196
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE
MUNICIPAL INCOME MUNICIPAL BOND
---------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98
----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income.................................. $ 4,730 $ 4,087 $ 41,590 $ 30,021
Net realized gain/(loss) on investments................ 278 274 5,314 6,161
Net change in unrealized appreciation/(depreciation) of
investments.......................................... 286 564 406 9,021
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting from
operations........................................... 5,294 4,925 47,310 45,203
Distributions to shareholders from net investment
income:
Primary A Shares..................................... (2,942) (2,665) (40,911) (29,730)
Investor A Shares.................................... (1,154) (959) (525) (178)
Investor B Shares.................................... (509) (446) (86) (72)
Investor C Shares.................................... (125) (26) (67) (41)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares..................................... -- -- (5,775) (3,319)
Investor A Shares.................................... -- -- (69) (14)
Investor B Shares.................................... -- -- (15) (8)
Investor C Shares.................................... -- -- (10) (6)
Net increase/(decrease) in net assets from Fund share
transactions......................................... 21,296 27,409 61,477 752,910
-------- -------- -------- --------
Net increase/(decrease) in net assets.................. 21,860 28,238 61,329 764,745
NET ASSETS:
Beginning of year...................................... 109,461 81,223 877,254 112,509
-------- -------- -------- --------
End of year............................................ $131,321 $109,461 $938,583 $877,254
======== ======== ======== ========
Undistributed net investment income/(distributions in
excess of net investment income) at end of year...... $ 39 $ 39 $ 752 $ 552
======== ======== ======== ========
</TABLE>
- ---------------
* Amount represents less than $500
SEE NOTES TO FINANCIAL STATEMENTS.
192
<PAGE> 197
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE
MUNICIPAL INCOME MUNICIPAL BOND FLORIDA MUNICIPAL BOND
----------------------- ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98 3/31/99 3/31/98
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 29,528 $ 19,347 $ 10,814 $ 7,409 $ 6,878 2,013
2,167 6,906 292 188 891 43
970 11,577 29 3,444 (346) 2,230
-------- -------- -------- -------- -------- -------
32,665 37,830 11,135 11,041 7,423 4,286
(27,799) (17,832) (10,023) (6,996) (3,320) (1,194)
(1,064) (795) (578) (265) (2,901) (89)
(578) (618) (167) (138) (658) (727)
(84) (102) (46) (10) --* --*
(2,148) (2,020) -- -- -- --
(95) (74) -- -- -- --
(61) (64) -- -- -- --
(9) (14) -- -- -- --
185,849 368,564 38,788 153,428 111,028 5,909
-------- -------- -------- -------- -------- -------
186,676 384,875 39,109 157,060 111,572 8,182
493,538 108,663 214,710 57,650 48,456 38,274
-------- -------- -------- -------- -------- -------
$680,214 $493,538 $253,819 $214,710 $158,028 $46,456
======== ======== ======== ======== ======== =======
$ 602 $ 513 $ -- $ --* $ 99 $ 19
======== ======== ======== ======== ======== =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
193
<PAGE> 198
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GEORGIA INTERMEDIATE GEORGIA
MUNICIPAL BOND MUNICIPAL BOND
---------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98
----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income.................................. $ 6,921 $ 5,114 $ 874 $ 717
Net realized gain/(loss) on investments................ 667 1,003 52 120
Net change in unrealized appreciation/(depreciation) of
investments.......................................... 119 2,219 160 720
-------- -------- ------- -------
Net increase/(decrease) in net assets resulting from
operations........................................... 7,707 8,336 1,086 1,557
Distributions to shareholders from net investment
income:
Primary A Shares..................................... (5,859) (4,359) (418) (303)
Investor A Shares.................................... (740) (406) (64) (18)
Investor B Shares.................................... (289) (290) (393) (395)
Investor C Shares.................................... (33) (65) --* (2)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares..................................... (496) (509) -- --
Investor A Shares.................................... (77) (40) -- --
Investor B Shares.................................... (30) (30) -- --
Investor C Shares.................................... (4) (7) -- --
Net increase/(decrease) in net assets from Fund share
transactions......................................... 17,195 79,018 4,770 1,849
-------- -------- ------- -------
Net increase/(decrease) in net assets.................. 17,374 81,648 4,981 2,688
NET ASSETS:
Beginning of year...................................... 143,512 61,864 18,700 16,012
-------- -------- ------- -------
End of year............................................ $160,886 $143,512 $23,681 $18,700
======== ======== ======= =======
Undistributed net investment income/(distributions in
excess of net investment income) at end of year...... $ 11 $ 11 $ 7 $ 8
======== ======== ======= =======
</TABLE>
- ---------------
* Amount represents less than $500
SEE NOTES TO FINANCIAL STATEMENTS.
194
<PAGE> 199
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA
MARYLAND INTERMEDIATE MARYLAND INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
----------------------- ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98 3/31/99 3/31/98
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 8,126 $ 4,268 $ 1,167 $ 759 $ 9,107 $ 6,273
1,039 35 60 49 609 643
(51) 2,605 66 850 84 2,119
-------- -------- ------- ------- -------- --------
9,114 6,908 1,293 1,658 9,800 9,035
(7,192) (3,395) (619) (351) (8,419) (5,650)
(703) (695) (77) (76) (423) (305)
(210) (174) (470) (332) (259) (264)
(22) (62) (1) --* (6) (53)
-- -- (2) -- (474) --
-- -- --* -- (25) --
-- -- (1) -- (18) --
-- -- -- -- --* --
100,167 18,484 12,763 7,019 14,118 153,481
-------- -------- ------- ------- -------- --------
101,154 21,066 12,886 7,918 14,294 156,244
105,918 84,852 22,025 14,107 195,983 39,739
-------- -------- ------- ------- -------- --------
$207,072 $105,918 $34,911 $22,025 $210,277 $195,983
======== ======== ======= ======= ======== ========
$ 1 $ --* $ 7 $ 7 $ 81 $ 81
======== ======== ======= ======= ======== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
195
<PAGE> 200
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SOUTH CAROLINA
NORTH CAROLINA INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND
---------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98
----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income.................................. $ 1,501 $ 1,214 $ 12,740 $ 9,655
Net realized gain/(loss) on investments................ 53 72 1,038 660
Net change in unrealized appreciation/(depreciation) of
investments.......................................... 149 1,539 (235) 3,345
------- ------- -------- --------
Net increase/(decrease) in net assets resulting from
operations........................................... 1,703 2,825 13,543 13,660
Distributions to shareholders from net investment
income:
Primary A Shares..................................... (497) (221) (11,626) (8,701)
Investor A Shares.................................... (63) (29) (755) (527)
Investor B Shares.................................... (944) (963) (288) (261)
Investor C Shares.................................... --* (1) (72) (166)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares..................................... -- -- (857) (117)
Investor A Shares.................................... -- -- (59) (5)
Investor B Shares.................................... -- -- (25) (3)
Investor C Shares.................................... -- -- (6) (2)
Net increase/(decrease) in net assets from Fund share
transactions......................................... 9,529 3,072 (6,838) 202,463
------- ------- -------- --------
Net increase/(decrease) in net assets.................. 9,728 4,683 (6,983) 206,341
NET ASSETS:
Beginning of year...................................... 32,252 27,569 276,551 70,210
------- ------- -------- --------
End of year............................................ $41,980 $32,252 $269,568 $276,551
======= ======= ======== ========
Undistributed net investment income/(distributions in
excess of net investment income) at end of year...... $ 21 $ 24 $ 25 $ 24
======= ======= ======== ========
</TABLE>
- ---------------
* Amount represents less than $500
SEE NOTES TO FINANCIAL STATEMENTS.
196
<PAGE> 201
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
TENNESSEE
SOUTH CAROLINA INTERMEDIATE TENNESSEE
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
----------------------- ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98 3/31/99 3/31/98
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 974 $ 828 $ 2,286 $ 1,695 $ 459 $ 428
28 (39) 235 126 132 63
45 923 35 763 (50) 444
------- ------- ------- ------- ------- -------
1,047 1,712 2,556 2,584 541 935
(518) (332) (1,811) (1,272) (243) (170)
(49) (60) (371) (305) (36) (61)
(405) (434) (104) (118) (177) (195)
(2) (2) -- -- (2) (2)
-- (5) -- -- -- --
-- (1) -- -- -- --
-- (10) -- -- -- --
-- --* -- -- -- --
3,368 2,252 4,759 30,429 (8) 1,480
------- ------- ------- ------- ------- -------
3,441 3,120 5,029 31,318 75 1,987
21,394 18,274 50,079 18,761 10,957 8,970
------- ------- ------- ------- ------- -------
$24,835 $21,394 $55,108 $50,079 $11,032 $10,957
======= ======= ======= ======= ======= =======
$ 11 $ 7 $ 4 $ 4 $ 23 $ 14
======= ======= ======= ======= ======= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
197
<PAGE> 202
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TEXAS INTERMEDIATE
MUNICIPAL BOND
----------------------------
YEAR ENDED YEAR ENDED
3/31/99 3/31/98
----------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 18,330 $ 12,207
Net realized gain/(loss) on investments..................... 1,846 908
Net change in unrealized appreciation/(depreciation) of
investments............................................... (900) 3,698
-------- --------
Net increase/(decrease) in net assets resulting from
operations................................................ 19,276 16,813
Distributions to shareholders from net investment income:
Primary A Shares.......................................... (18,065) (12,036)
Investor A Shares......................................... (175) (64)
Investor B Shares......................................... (82) (86)
Investor C Shares......................................... (7) (21)
Distributions to shareholders from net realized gains on
investments:
Primary A Shares.......................................... (1,579) --
Investor A Shares......................................... (16) --
Investor B Shares......................................... (9) --
Investor C Shares......................................... --* --
Net increase/(decrease) in net assets from Fund share
transactions.............................................. 10,224 357,861
-------- --------
Net increase/(decrease) in net assets....................... 9,567 362,467
NET ASSETS:
Beginning of year........................................... 390,913 28,446
-------- --------
End of year................................................. $400,480 $390,913
======== ========
Undistributed net investment income/(distributions in excess
of net investment income) at end of year.................. $ 53 $ 8
======== ========
</TABLE>
- ---------------
* Amount represents less than $500
SEE NOTES TO FINANCIAL STATEMENTS.
198
<PAGE> 203
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
VIRGINIA
TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
----------------------- ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/99 3/31/98 3/31/99 3/31/98 3/31/99 3/31/98
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 720 $ 719 $ 11,920 $ 10,395 $ 1,160 $ 1,002
339 187 279 480 138 50
(219) 744 784 6,166 (23) 1,203
------- ------- -------- -------- ------- -------
840 1,650 12,983 17,041 1,275 2,255
(402) (323) (9,050) (7,365) (599) (394)
(21) (18) (2,450) (2,413) (50) (44)
(294) (373) (377) (397) (511) (562)
(3) (5) (43) (221) --* (1)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(333) (222) 57,724 8,526 2,011 3,610
------- ------- -------- -------- ------- -------
(213) 709 58,787 15,171 2,126 4,864
16,919 16,210 236,641 221,470 25,333 20,469
------- ------- -------- -------- ------- -------
$16,706 $16,919 $295,428 $236,641 $27,459 $25,333
======= ======= ======== ======== ======= =======
$ 31 $ 29 $ 146 $ 146 $ 7 $ 7
======= ======= ======== ======== ======= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
199
<PAGE> 204
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INCOME
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 4,720 $ 47,562 5,491 $ 55,100
Issued as reinvestment of dividends....................... 9 90 2 19
Redeemed.................................................. (3,946) (39,739) (4,590) (45,983)
------ -------- ------ --------
Net increase/(decrease)................................... 783 $ 7,913 903 $ 9,136
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 4,979 $ 50,187 4,262 $ 42,742
Issued as reinvestment of dividends....................... 92 931 84 846
Redeemed.................................................. (3,872) (39,023) (2,846) (28,614)
------ -------- ------ --------
Net increase/(decrease)................................... 1,199 $ 12,095 1,500 $ 14,974
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 419 $ 4,222 1,111 $ 11,128
Issued as reinvestment of dividends....................... 42 426 41 412
Redeemed.................................................. (451) (4,539) (854) (8,545)
------ -------- ------ --------
Net increase/(decrease)................................... 10 $ 109 298 $ 2,995
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 511 $ 5,138 115 $ 1,155
Issued as reinvestment of dividends....................... 11 115 3 24
Redeemed.................................................. (405) (4,074) (88) (875)
------ -------- ------ --------
Net increase/(decrease)................................... 117 $ 1,179 30 $ 304
====== ======== ====== ========
Total net increase/(decrease)............................... 2,109 $ 21,296 2,731 $ 27,409
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
200
<PAGE> 205
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
-------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 18,458 $ 190,928 11,793 $121,102
Issued in exchange for Pilot Shares of Pilot Intermediate
Municipal Fund (Note 8)................................. -- -- 21,603 218,049
Issued in exchange for assets of NationsBank Common Trust
Intermediate Municipal Bond Fund (Note 8)............... -- -- 49,075 502,041
Issued as reinvestment of dividends....................... 121 1,162 51 522
Redeemed.................................................. (13,596) (140,738) (9,181) (94,446)
------- --------- ------ --------
Net increase/(decrease)................................... 4,983 $ 51,352 73,341 $747,268
======= ========= ====== ========
INVESTOR A SHARES:
Sold...................................................... 1,515 $ 15,629 461 $ 4,748
Issued in exchange for Class A Shares of Pilot
Intermediate Municipal Fund (Note 8).................... -- -- 83 835
Issued as reinvestment of dividends....................... 32 338 11 115
Redeemed.................................................. (609) (6,296) (132) (1,362)
------- --------- ------ --------
Net increase/(decrease)................................... 938 $ 9,671 423 $ 4,336
======= ========= ====== ========
INVESTOR B SHARES:
Sold...................................................... 54 $ 560 66 $ 679
Issued as reinvestment of dividends....................... 6 59 4 44
Redeemed.................................................. (8) (84) (22) (232)
------- --------- ------ --------
Net increase/(decrease)................................... 52 $ 535 48 $ 491
======= ========= ====== ========
INVESTOR C SHARES:
Sold...................................................... 68 $ 704 190 $ 1,958
Issued as reinvestment of dividends....................... 7 71 5 45
Redeemed.................................................. (83) (856) (116) (1,188)
------- --------- ------ --------
Net increase/(decrease)................................... (8) $ (81) 79 $ 815
======= ========= ====== ========
Total net increase/(decrease)............................... 5,965 $ 61,477 73,891 $752,910
======= ========= ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
201
<PAGE> 206
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL INCOME
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 11,061 $127,340 7,932 $ 89,846
Issued in exchange for Pilot Shares of Pilot Municipal
Bond Fund (Note 8)...................................... -- -- 17,965 198,167
Issued in exchange for assets of NationsBank Common Trust
Municipal Bond Fund (Note 8)............................ -- -- 14,127 159,212
Issued in exchange for assets of NationsBank Common Trust
Municipal Bond Fund (Note 8)............................ 11,784 135,044 -- --
Issued as reinvestment of dividends....................... 43 488 32 359
Redeemed.................................................. (7,333) (84,501) (7,317) (82,863)
------ -------- ------ --------
Net increase/(decrease)................................... 15,555 $178,371 32,739 $364,721
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 4,937 $ 56,960 841 $ 9,493
Issued in exchange for Class A Shares of Pilot Municipal
Bond Fund (Note 8)...................................... -- -- 147 1,622
Issued as reinvestment of dividends....................... 48 556 42 480
Redeemed.................................................. (4,168) (48,138) (737) (8,324)
------ -------- ------ --------
Net increase/(decrease)................................... 817 $ 9,378 293 $ 3,271
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 135 $ 1,553 250 $ 2,787
Issued in exchange for Class B Shares of Pilot Municipal
Bond Fund (Note 8)...................................... -- -- 141 1,555
Issued as reinvestment of dividends....................... 27 307 32 363
Redeemed.................................................. (301) (3,462) (423) (4,759)
------ -------- ------ --------
Net increase/(decrease)................................... (139) $ (1,602) --* $ (54)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 55 $ 637 255 $ 2,901
Issued as reinvestment of dividends....................... 7 77 8 88
Redeemed.................................................. (88) (1,012) (207) (2,363)
------ -------- ------ --------
Net increase/(decrease)................................... (26) $ (298) 56 $ 626
====== ======== ====== ========
Total net increase/(decrease)............................... 16,207 $185,849 33,088 $368,564
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than 500 shares.
SEE NOTES TO FINANCIAL STATEMENTS.
202
<PAGE> 207
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 5,968 $ 64,595 3,473 $ 37,225
Issued in exchange for assets of NationsBank Common Trust
Florida Municipal Bond Fund (Note 8).................... -- -- 12,807 136,392
Issued as reinvestment of dividends....................... 9 96 6 61
Redeemed.................................................. (3,163) (34,173) (2,340) (25,086)
------ -------- ------ --------
Net increase/(decrease)................................... 2,814 $ 30,518 13,946 $148,592
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 1,475 $ 15,944 593 $ 6,334
Issued as reinvestment of dividends....................... 36 384 14 148
Redeemed.................................................. (996) (10,763) (144) (1,547)
------ -------- ------ --------
Net increase/(decrease)................................... 515 $ 5,565 463 $ 4,935
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 205 $ 2,103 52 $ 552
Issued as reinvestment of dividends....................... 9 102 8 87
Redeemed.................................................. (78) (727) (61) (645)
------ -------- ------ --------
Net increase/(decrease)................................... 136 $ 1,478 (1) $ (6)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 182 $ 1,969 19 $ 200
Issued as reinvestment of dividends....................... 3 33 --* 5
Redeemed.................................................. (71) (775) (27) (298)
------ -------- ------ --------
Net increase/(decrease)................................... 114 $ 1,227 (8) $ (93)
====== ======== ====== ========
Total net increase/(decrease)............................... 3,579 $ 38,788 14,400 $153,428
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
203
<PAGE> 208
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,451 $ 24,796 2,139 $ 21,114
Issued in exchange for Emerald Shares of Emerald Florida
Tax-Exempt Fund (Note 8)................................ 4,083 40,619 -- --
Issued as reinvestment of dividends....................... 16 149 1 4
Redeemed.................................................. (1,560) (15,848) (1,161) (11,646)
------ -------- ------ --------
Net increase/(decrease)................................... 4,990 $ 49,716 979 $ 9,472
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 447 $ 4,495 33 $ 325
Issued in exchange for Class A Shares of Emerald Florida
Tax-Exempt Fund (Note 8)................................ 7,877 78,347 -- --
Issued as reinvestment of dividends....................... 215 2,170 3 32
Redeemed.................................................. (2,195) (22,090) (21) (210)
------ -------- ------ --------
Net increase/(decrease)................................... 6,344 $ 62,922 15 $ 147
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 199 $ 1,997 113 $ 1,149
Issued as reinvestment of dividends....................... 29 296 33 321
Redeemed.................................................. (389) (3,923) (524) (5,142)
------ -------- ------ --------
Net increase/(decrease)................................... (161) $ (1,630) (378) $ (3,672)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 2 $ 20 -- $ --
Issued as reinvestment of dividends....................... --* --* --* 1
Redeemed.................................................. --* --* (4) (39)
------ -------- ------ --------
Net increase/(decrease)................................... 2 $ 20 (4) $ (38)
====== ======== ====== ========
Total net increase/(decrease)............................... 11,175 $111,028 612 $ 5,909
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
204
<PAGE> 209
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,261 $ 24,758 1,650 $ 18,023
Issued in exchange for assets of NationsBank Common Trust:
Georgia Municipal Bond Fund (Note 8).................... -- -- 4,858 52,613
Tax-Free Income Fund for Personal Trusts (Note 8)....... -- -- 2,405 26,050
Issued as reinvestment of dividends....................... 2 18 4 41
Redeemed.................................................. (1,701) (18,648) (1,519) (16,577)
------ -------- ------ --------
Net increase/(decrease)................................... 562 $ 6,128 7,398 $ 80,150
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 1,823 $ 20,088 214 $ 2,333
Issued as reinvestment of dividends....................... 57 624 30 321
Redeemed.................................................. (946) (10,421) (212) (2,311)
------ -------- ------ --------
Net increase/(decrease)................................... 934 $ 10,291 32 $ 343
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 119 $ 1,307 20 $ 216
Issued as reinvestment of dividends....................... 14 154 12 131
Redeemed.................................................. (49) (536) (75) (811)
------ -------- ------ --------
Net increase/(decrease)................................... 84 $ 925 (43) $ (464)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 10 $ 112 6 $ 63
Issued as reinvestment of dividends....................... 3 31 4 46
Redeemed.................................................. (27) (292) (103) (1,120)
------ -------- ------ --------
Net increase/(decrease)................................... (14) $ (149) (93) $ (1,011)
====== ======== ====== ========
Total net increase/(decrease)............................... 1,566 $ 17,195 7,294 $ 79,018
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
205
<PAGE> 210
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 274 $ 2,753 385 $ 3,815
Issued as reinvestment of dividends....................... --* --* --* --
Redeemed.................................................. (127) (1,275) (156) (1,535)
---- ------- ---- -------
Net increase/(decrease)................................... 147 $ 1,478 229 $ 2,280
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 218 $ 2,211 37 $ 356
Issued as reinvestment of dividends....................... 5 53 2 16
Redeemed.................................................. (13) (132) (12) (120)
---- ------- ---- -------
Net increase/(decrease)................................... 210 $ 2,132 27 $ 252
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 251 $ 2,532 108 $ 1,080
Issued as reinvestment of dividends....................... 21 211 21 208
Redeemed.................................................. (155) (1,559) (196) (1,923)
---- ------- ---- -------
Net increase/(decrease)................................... 117 $ 1,184 (67) $ (635)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... -- $ -- -- $ --
Issued as reinvestment of dividends....................... --* --* --* 2
Redeemed.................................................. (3) (24) (5) (50)
---- ------- ---- -------
Net increase/(decrease)................................... (3) $ (24) (5) $ (48)
==== ======= ==== =======
Total net increase/(decrease)............................... 471 $ 4,770 184 $ 1,849
==== ======= ==== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
206
<PAGE> 211
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ -----------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,757 $ 30,674 2,431 $26,652
Issued in exchange for assets of NationsBank Common Trust
Intermediate Municipal Bond Fund (Note 8)............... 8,515 93,840 -- --
Issued as reinvestment of dividends....................... 8 97 7 74
Redeemed.................................................. (2,414) (26,843) (686) (7,519)
------ -------- ----- -------
Net increase/(decrease)................................... 8,866 $ 97,768 1,752 $19,207
====== ======== ===== =======
INVESTOR A SHARES:
Sold...................................................... 254 $ 2,836 140 $ 1,531
Issued as reinvestment of dividends....................... 46 514 52 570
Redeemed.................................................. (162) (1,829) (180) (1,976)
------ -------- ----- -------
Net increase/(decrease)................................... 138 $ 1,521 12 $ 125
====== ======== ===== =======
INVESTOR B SHARES:
Sold...................................................... 175 $ 1,944 75 $ 824
Issued as reinvestment of dividends....................... 14 150 12 138
Redeemed.................................................. (84) (935) (53) (583)
------ -------- ----- -------
Net increase/(decrease)................................... 105 $ 1,159 34 $ 379
====== ======== ===== =======
INVESTOR C SHARES:
Sold...................................................... 7 $ 77 92 $ 1,010
Issued as reinvestment of dividends....................... 2 17 5 50
Redeemed.................................................. (35) (375) (209) (2,287)
------ -------- ----- -------
Net increase/(decrease)................................... (26) $ (281) (112) $(1,227)
====== ======== ===== =======
Total net increase/(decrease)............................... 9,083 $100,167 1,686 $18,484
====== ======== ===== =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
207
<PAGE> 212
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ -----------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,214 $ 12,110 580 $ 5,633
Issued as reinvestment of dividends....................... --* 4 --* 4
Redeemed.................................................. (420) (4,201) (158) (1,553)
----- -------- ---- -------
Net increase/(decrease)................................... 794 $ 7,913 422 $ 4,084
===== ======== ==== =======
INVESTOR A SHARES:
Sold...................................................... 27 $ 268 44 $ 430
Issued as reinvestment of dividends....................... 6 60 7 64
Redeemed.................................................. (49) (491) (9) (92)
----- -------- ---- -------
Net increase/(decrease)................................... (16) $ (163) 42 $ 402
===== ======== ==== =======
INVESTOR B SHARES:
Sold...................................................... 630 $ 6,403 342 $ 3,393
Issued as reinvestment of dividends....................... 34 341 26 258
Redeemed.................................................. (164) (1,731) (114) (1,118)
----- -------- ---- -------
Net increase/(decrease)................................... 500 $ 5,013 254 $ 2,533
===== ======== ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* 1 $ 10
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. --* --* (1) (10)
----- -------- ---- -------
Net increase/(decrease)................................... -- $ -- -- $ --
===== ======== ==== =======
Total net increase/(decrease)............................... 1,278 $ 12,763 718 $ 7,019
===== ======== ==== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
208
<PAGE> 213
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,786 $ 41,006 1,887 $ 20,130
Issued in exchange for assets of NationsBank Common Trust
North Carolina Municipal Bond Fund (Note 8)............. -- -- 13,385 141,745
Issued as reinvestment of dividends....................... 21 236 --* --
Redeemed.................................................. (2,549) (27,730) (967) (10,283)
------ -------- ------ --------
Net increase/(decrease)................................... 1,258 $ 13,512 14,305 $151,592
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 400 $ 4,296 345 $ 3,663
Issued as reinvestment of dividends....................... 27 287 24 253
Redeemed.................................................. (285) (3,068) (121) (1,277)
------ -------- ------ --------
Net increase/(decrease)................................... 142 $ 1,515 248 $ 2,639
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 48 $ 514 73 $ 783
Issued as reinvestment of dividends....................... 18 193 19 205
Redeemed.................................................. (84) (903) (108) (1,149)
------ -------- ------ --------
Net increase/(decrease)................................... (18) $ (196) (16) $ (161)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* -- $ --
Issued as reinvestment of dividends....................... 1 6 4 47
Redeemed.................................................. (68) (719) (59) (636)
------ -------- ------ --------
Net increase/(decrease)................................... (67) $ (713) (55) $ (589)
====== ======== ====== ========
Total net increase/(decrease)............................... 1,315 $ 14,118 14,482 $153,481
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
209
<PAGE> 214
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,145 $11,553 386 $ 3,795
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (172) (1,735) (68) (669)
----- ------- ---- -------
Net increase/(decrease)................................... 973 $ 9,818 318 $ 3,126
===== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 162 $ 1,638 17 $ 168
Issued as reinvestment of dividends....................... 2 21 3 25
Redeemed.................................................. (123) (1,251) (22) (214)
----- ------- ---- -------
Net increase/(decrease)................................... 41 $ 408 (2) $ (21)
===== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 281 $ 2,828 251 $ 2,493
Issued as reinvestment of dividends....................... 63 640 70 690
Redeemed.................................................. (413) (4,165) (325) (3,200)
----- ------- ---- -------
Net increase/(decrease)................................... (69) $ (697) (4) $ (17)
===== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* -- $ --
Issued as reinvestment of dividends....................... --* --* --* 1
Redeemed.................................................. --* --* (2) (17)
----- ------- ---- -------
Net increase/(decrease)................................... -- $ -- (2) $ (16)
===== ======= ==== =======
Total net increase/(decrease)............................... 945 $ 9,529 310 $ 3,072
===== ======= ==== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
210
<PAGE> 215
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,584 $ 27,952 2,146 $ 23,120
Issued in exchange for assets of NationsBank Common Trust:
Old Colony South Carolina Tax-Exempt Bond Fund (Note
8).................................................... -- -- 6,420 68,635
South Carolina Municipal Bond Fund (Note 8)............. -- -- 12,876 137,649
Issued as reinvestment of dividends....................... 15 164 11 126
Redeemed.................................................. (3,874) (41,931) (2,665) (28,647)
------ -------- ------ --------
Net increase/(decrease)................................... (1,275) $(13,815) 18,788 $200,883
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 602 $ 6,544 561 $ 6,030
Issued as reinvestment of dividends....................... 34 364 22 238
Redeemed.................................................. (192) (2,081) (288) (3,086)
------ -------- ------ --------
Net increase/(decrease)................................... 444 $ 4,827 295 $ 3,182
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 218 $ 2,370 166 $ 1,772
Issued as reinvestment of dividends....................... 18 190 16 170
Redeemed.................................................. (76) (824) (97) (1,034)
------ -------- ------ --------
Net increase/(decrease)................................... 160 $ 1,736 85 $ 908
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 191 $ 2,068 66 $ 720
Issued as reinvestment of dividends....................... 4 46 9 96
Redeemed.................................................. (157) (1,700) (310) (3,326)
------ -------- ------ --------
Net increase/(decrease)................................... 38 $ 414 (235) $ (2,510)
====== ======== ====== ========
Total net increase/(decrease)............................... (633) $ (6,838) 18,933 $202,463
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
211
<PAGE> 216
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 503 $ 5,191 454 $ 4,598
Issued as reinvestment of dividends....................... -- -- --* --*
Redeemed.................................................. (183) (1,887) (55) (556)
---- ------- ---- -------
Net increase/(decrease)................................... 320 $ 3,304 399 $ 4,042
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 6 $ 67 89 $ 898
Issued as reinvestment of dividends....................... 4 42 4 45
Redeemed.................................................. (55) (568) (28) (289)
---- ------- ---- -------
Net increase/(decrease)................................... (45) $ (459) 65 $ 654
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 98 $ 1,013 76 $ 775
Issued as reinvestment of dividends....................... 23 234 28 278
Redeemed.................................................. (75) (774) (327) (3,274)
---- ------- ---- -------
Net increase/(decrease)................................... 46 $ 473 (223) $(2,221)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... 5 $ 48 2 $ 25
Issued as reinvestment of dividends....................... --* 2 --* --*
Redeemed.................................................. --* --* (25) (248)
---- ------- ---- -------
Net increase/(decrease)................................... 5 $ 50 (23) $ (223)
==== ======= ==== =======
Total net increase/(decrease)............................... 326 $ 3,368 218 $ 2,252
==== ======= ==== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
212
<PAGE> 217
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 769 $ 8,052 670 $ 6,913
Issued in exchange for assets of NationsBank Common Trust
Tennessee Municipal Bond Fund (Note 8).................. -- -- 2,471 25,429
Issued as reinvestment of dividends....................... 7 75 2 20
Redeemed.................................................. (440) (4,608) (263) (2,723)
---- ------- ----- -------
Net increase/(decrease)................................... 336 $ 3,519 2,880 $29,639
==== ======= ===== =======
INVESTOR A SHARES:
Sold...................................................... 169 $ 1,771 135 $ 1,393
Issued as reinvestment of dividends....................... 25 265 23 241
Redeemed.................................................. (86) (896) (61) (622)
---- ------- ----- -------
Net increase/(decrease)................................... 108 $ 1,140 97 $ 1,012
==== ======= ===== =======
INVESTOR B SHARES:
Sold...................................................... 30 $ 310 13 $ 134
Issued as reinvestment of dividends....................... 7 77 10 99
Redeemed.................................................. (31) (317) (44) (455)
---- ------- ----- -------
Net increase/(decrease)................................... 6 $ 70 (21) $ (222)
==== ======= ===== =======
INVESTOR C SHARES:
Sold...................................................... 3 $ 30 -- $ --
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. --* --* -- --
---- ------- ----- -------
Net increase/(decrease)................................... 3 $ 30 -- $ --
==== ======= ===== =======
Total net increase/(decrease)............................... 453 $ 4,759 2,956 $30,429
==== ======= ===== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
213
<PAGE> 218
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 189 $ 1,946 233 $2,348
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (76) (777) (54) (553)
---- ------- --- ------
Net increase/(decrease)................................... 113 $ 1,169 179 $1,795
==== ======= === ======
INVESTOR A SHARES:
Sold...................................................... 34 $ 349 33 $ 321
Issued as reinvestment of dividends....................... 3 32 6 58
Redeemed.................................................. (131) (1,354) (3) (25)
---- ------- --- ------
Net increase/(decrease)................................... (94) $ (973) 36 $ 354
==== ======= === ======
INVESTOR B SHARES:
Sold...................................................... 14 $ 145 16 $ 156
Issued as reinvestment of dividends....................... 13 129 15 155
Redeemed.................................................. (49) (503) (98) (982)
---- ------- --- ------
Net increase/(decrease)................................... (22) $ (229) (67) $ (671)
==== ======= === ======
INVESTOR C SHARES:
Sold...................................................... 2 $ 24 -- $ --
Issued as reinvestment of dividends....................... --* 1 --* 2
Redeemed.................................................. --* --* -- --
---- ------- --- ------
Net increase/(decrease)................................... 2 $ 25 --* $ 2
==== ======= === ======
Total net increase/(decrease)............................... (1) $ (8) 148 $1,480
==== ======= === ======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
214
<PAGE> 219
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 5,191 $ 54,659 1,850 $ 19,419
Issued in exchange for assets of NationsBank Common Trust
Texas Municipal Bond Fund (Note 8)...................... -- -- 34,435 357,784
Issued as reinvestment of dividends....................... 15 160 1 7
Redeemed.................................................. (4,612) (48,526) (1,978) (20,694)
------ -------- ------ --------
Net increase/(decrease)................................... 594 $ 6,293 34,308 $356,516
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 1,057 $ 11,128 203 $ 2,130
Issued as reinvestment of dividends....................... 9 94 3 38
Redeemed.................................................. (661) (6,956) (42) (442)
------ -------- ------ --------
Net increase/(decrease)................................... 405 $ 4,266 164 $ 1,726
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 10 $ 104 7 $ 76
Issued as reinvestment of dividends....................... 5 58 6 57
Redeemed.................................................. (20) (206) (19) (198)
------ -------- ------ --------
Net increase/(decrease)................................... (5) $ (44) (6) $ (65)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* -- $ --
Issued as reinvestment of dividends....................... 1 6 2 21
Redeemed.................................................. (29) (297) (32) (337)
------ -------- ------ --------
Net increase/(decrease)................................... (28) $ (291) (30) $ (316)
====== ======== ====== ========
Total net increase/(decrease)............................... 966 $ 10,224 34,436 $357,861
====== ======== ====== ========
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
215
<PAGE> 220
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 280 $ 2,823 269 $ 2,658
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (109) (1,100) (109) (1,078)
---- ------- ---- -------
Net increase/(decrease)................................... 171 $ 1,723 160 $ 1,580
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 58 $ 588 3 $ 34
Issued as reinvestment of dividends....................... 1 7 1 6
Redeemed.................................................. (61) (617) (1) (15)
---- ------- ---- -------
Net increase/(decrease)................................... (2) $ (22) 3 $ 25
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 8 $ 93 6 $ 61
Issued as reinvestment of dividends....................... 17 168 26 254
Redeemed.................................................. (227) (2,298) (219) (2,145)
---- ------- ---- -------
Net increase/(decrease)................................... (202) $(2,037) (187) $(1,830)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* -- $ --
Issued as reinvestment of dividends....................... --* 3 --* 3
Redeemed.................................................. --* --* -- --
---- ------- ---- -------
Net increase/(decrease)................................... --* $ 3 --* $ 3
==== ======= ==== =======
Total net increase/(decrease)............................... (33) $ (333) (24) $ (222)
==== ======= ==== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
216
<PAGE> 221
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 7,658 $ 84,298 3,742 $ 40,764
Issued in exchange for assets of NationsBank Common Trust
Virginia Municipal Bond Fund (Note 8)................... 437 4,781 -- --
Issued as reinvestment of dividends....................... 6 65 9 96
Redeemed.................................................. (3,052) (33,592) (2,136) (23,134)
------ -------- ------ --------
Net increase/(decrease)................................... 5,049 $ 55,552 1,615 $ 17,726
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 883 $ 9,763 577 $ 6,271
Issued as reinvestment of dividends....................... 132 1,452 143 1,546
Redeemed.................................................. (799) (8,799) (1,036) (11,127)
------ -------- ------ --------
Net increase/(decrease)................................... 216 $ 2,416 (316) $ (3,310)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 115 $ 1,275 39 $ 421
Issued as reinvestment of dividends....................... 22 246 25 270
Redeemed.................................................. (82) (910) (174) (1,882)
------ -------- ------ --------
Net increase/(decrease)................................... 55 $ 611 (110) $ (1,191)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 48 $ 531 6 $ 64
Issued as reinvestment of dividends....................... 3 33 12 132
Redeemed.................................................. (130) (1,419) (450) (4,895)
------ -------- ------ --------
Net increase/(decrease)................................... (79) $ (855) (432) $ (4,699)
====== ======== ====== ========
Total net increase/(decrease)............................... 5,241 $ 57,724 757 $ 8,526
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
217
<PAGE> 222
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 431 $ 4,431 594 $ 5,815
Issued as reinvestment of dividends....................... 1 13 -- --
Redeemed.................................................. (240) (2,532) (94) (914)
---- ------- ---- -------
Net increase/(decrease)................................... 192 $ 1,912 500 $ 4,901
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 48 $ 476 66 $ 643
Issued as reinvestment of dividends....................... 3 33 3 34
Redeemed.................................................. (77) (777) (24) (234)
---- ------- ---- -------
Net increase/(decrease)................................... (26) $ (268) 45 $ 443
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 120 $ 1,210 52 $ 505
Issued as reinvestment of dividends....................... 31 314 36 357
Redeemed.................................................. (114) (1,157) (260) (2,552)
---- ------- ---- -------
Net increase/(decrease)................................... 37 $ 367 (172) $(1,690)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* -- $ --
Issued as reinvestment of dividends....................... --* --* --* 1
Redeemed.................................................. --* --* (5) (45)
---- ------- ---- -------
Net increase/(decrease)................................... -- $ -- (5) $ (44)
==== ======= ==== =======
Total net increase/(decrease)............................... 203 $ 2,011 368 $ 3,610
==== ======= ==== =======
</TABLE>
- ---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
218
<PAGE> 223
[THIS PAGE INTENTIONALLY LEFT BLANK.]
219
<PAGE> 224
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL INCOME
PRIMARY A SHARES
Year ended 3/31/1999(c)............. $10.05 $0.41 $ 0.05 $0.46 $(0.41) --
Year ended 3/31/1998................ 9.95 0.42 0.10 0.52 (0.42) --
Year ended 3/31/1997................ 9.98 0.44 (0.03) 0.41 (0.44) --
Period ended 3/31/1996(b)........... 10.03 0.15 (0.05) 0.10 (0.15) --
Year ended 11/30/1995............... 9.69 0.44 0.34 0.78 (0.44) --
Year ended 11/30/1994............... 9.96 0.38 (0.27) 0.11 (0.38) $(0.00)#
INVESTOR A SHARES
Year ended 3/31/1999(c)............. $10.05 $0.39 $ 0.05 $0.44 $(0.39) --
Year ended 3/31/1998................ 9.95 0.40 0.10 0.50 (0.40) --
Year ended 3/31/1997................ 9.98 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996(b)........... 10.03 0.14 (0.05) 0.09 (0.14) --
Year ended 11/30/1995............... 9.69 0.42 0.34 0.76 (0.42) --
Year ended 11/30/1994............... 9.96 0.36 (0.27) 0.09 (0.36) $(0.00)#
INVESTOR B SHARES
Year ended 3/31/1999(c)............. $10.05 $0.38 $ 0.05 $0.43 $(0.38) --
Year ended 3/31/1998................ 9.95 0.39 0.10 0.49 (0.39) --
Year ended 3/31/1997................ 9.98 0.40 (0.03) 0.37 (0.40) --
Period ended 3/31/1996(b)........... 10.03 0.13 (0.05) 0.08 (0.13) --
Year ended 11/30/1995............... 9.69 0.40 0.34 0.74 (0.40) --
Year ended 11/30/1994............... 9.96 0.34 (0.27) 0.07 (0.34) $(0.00)#
INVESTOR C SHARES
Year ended 3/31/1999(c)............. $10.05 $0.40 $ 0.02 $0.42 $(0.37) --
Year ended 3/31/1998................ 9.95 0.39 0.10 0.49 (0.39) --
Year ended 3/31/1997................ 9.98 0.40 (0.03) 0.37 (0.40) --
Period ended 3/31/1996(b)........... 10.03 0.14 (0.05) 0.09 (0.14) --
Year ended 11/30/1995............... 9.69 0.42 0.34 0.76 (0.42) --
Period ended 11/30/1994*............ 9.84 0.19 (0.15) 0.04 (0.19) $(0.00)#
</TABLE>
- ---------------
* Short-Term Municipal Income Investor C Shares commenced operations on May
19,1994.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
220
<PAGE> 225
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.41) $10.10 4.71% $79,002 0.40%(a) 4.11% 53% 0.80%
(0.42) 10.05 5.33 70,740 0.40(a) 4.17 94 0.77
(0.44) 9.95 4.15 61,072 0.40(a) 4.36 80 0.84
(0.15) 9.98 0.96 48,511 0.40+(a) 4.37+ 16 0.86+
(0.44) 10.03 8.16 49,961 0.45(a) 4.38 82 0.93
(0.38) 9.69 1.09 33,488 0.34(a) 3.83 57 0.80
$(0.39) $10.10 4.50% $35,805 0.60%(a) 3.91% 53% 1.05%
(0.40) 10.05 5.12 23,580 0.60(a) 3.97 94 0.97
(0.42) 9.95 3.96 8,417 0.60(a) 4.16 80 1.04
(0.14) 9.98 0.90 4,599 0.60+(a) 4.17+ 16 1.06+
(0.42) 10.03 7.95 3,741 0.65(a) 4.18 82 1.13
(0.36) 9.69 0.90 217 0.52(a) 3.65 57 0.99
$(0.38) $10.10 4.34% $13,931 0.75%(a) 3.76% 53% 1.80%
(0.39) 10.05 4.96 13,753 0.75(a) 3.82 94 1.12
(0.40) 9.95 3.78 10,655 0.75(a) 4.01 80 1.19
(0.13) 9.98 0.84 13,859 0.75+(a) 4.02+ 16 1.21+
(0.40) 10.03 7.78 9,803 0.80(a) 4.03 82 1.28
(0.34) 9.69 0.73 13,421 0.69(a) 3.48 57 1.15
$(0.37) $10.10 4.29% $ 2,583 0.83%(a) 3.68% 53% 1.80%
(0.39) 10.05 4.99 1,388 0.75(a) 3.82 94 1.12
(0.40) 9.95 3.79 1,080 0.75(a) 4.01 80 1.19
(0.14) 9.98 0.85 2,072 0.72+(a) 4.05+ 16 1.18+
(0.42) 10.03 7.95 1,953 0.70(a) 4.13 82 1.18
(0.19) 9.69 0.45 323 0.59+(a) 3.58+ 57 1.05+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
221
<PAGE> 226
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............... $10.30 $0.47 $ 0.07 $ 0.54 $(0.47) $(0.07)
Year ended 3/31/1998............... 10.01 0.48 0.33 0.81 (0.48) (0.04)
Year ended 3/31/1997............... 10.03 0.48 (0.02) 0.46 (0.48) --
Period ended 3/31/1996(b).......... 10.17 0.16 (0.14) 0.02 (0.16) --
Year ended 11/30/1995.............. 9.24 0.48 0.93 1.41 (0.48) --
Year ended 11/30/1994.............. 10.11 0.45 (0.86) (0.41) (0.45)# (0.01)
INVESTOR A SHARES
Year ended 3/31/1999............... $10.30 $0.45 $ 0.07 $ 0.52 $(0.45) $(0.07)
Year ended 3/31/1998............... 10.01 0.46 0.33 0.79 (0.46) (0.04)
Year ended 3/31/1997............... 10.03 0.46 (0.02) 0.44 (0.46) --
Period ended 3/31/1996(b).......... 10.17 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995.............. 9.24 0.47 0.93 1.40 (0.47) --
Year ended 11/30/1994.............. 10.11 0.42 (0.86) (0.44) (0.42)# (0.01)
INVESTOR B SHARES
Year ended 3/31/1999............... $10.30 $0.39 $ 0.07 $ 0.46 $(0.39) $(0.07)
Year ended 3/31/1998............... 10.01 0.41 0.33 0.74 (0.41) (0.04)
Year ended 3/31/1997............... 10.03 0.43 (0.02) 0.41 (0.43) --
Period ended 3/31/1996(b).......... 10.17 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995.............. 9.24 0.43 0.93 1.36 (0.43) --
Period ended 11/30/1994**.......... 10.13 0.39 (0.88) (0.49) (0.39)# (0.01)
INVESTOR C SHARES
Year ended 3/31/1999............... $10.30 $0.40 $ 0.09 $ 0.49 $(0.42) $(0.07)
Year ended 3/31/1998............... 10.01 0.42 0.33 0.75 (0.42) (0.04)
Year ended 3/31/1997............... 10.03 0.43 (0.02) 0.41 (0.43) --
Period ended 3/31/1996(b).......... 10.17 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995.............. 9.24 0.43 0.93 1.36 (0.43) --
Period ended 11/30/1994**.......... 9.35 0.03 (0.11) (0.08) (0.03) --
</TABLE>
- ---------------
** Intermediate Municipal Bond Investor B and Investor C Shares commenced
operations on December 2, 1993 and November 3, 1994, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
222
<PAGE> 227
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.54) $10.30 5.33% $918,367 0.50%(a) 4.55% 40% 0.68%
(0.52) 10.30 8.20 867,154 0.50(a) 4.65 47 0.74
(0.48) 10.01 4.63 108,204 0.50(a) 4.74 21 0.81
(0.16) 10.03 0.20 77,423 0.50+(a) 4.75+ 4 0.83+
(0.48) 10.17 15.60 73,897 0.45(a) 4.91 31 0.84
(0.46) 9.24 (4.25) 38,055 0.35(a) 4.59 51 0.88
$(0.52) $10.30 5.12% $ 16,149 0.70%(a) 4.35% 40% 0.93%
(0.50) 10.30 7.99 6,487 0.70(a) 4.45 47 0.94
(0.46) 10.01 4.42 2,067 0.70(a) 4.54 21 1.01
(0.15) 10.03 0.13 1,500 0.70+(a) 4.55+ 4 1.03+
(0.47) 10.17 15.38 1,249 0.65(a) 4.71 31 1.04
(0.43) 9.24 (4.48) 172 0.53(a) 4.41 51 1.06
$(0.46) $10.30 4.49% $ 2,556 1.30%(a) 3.75% 40% 1.68%
(0.45) 10.30 7.50 2,023 1.20(a) 3.95 47 1.44
(0.43) 10.01 4.12 1,481 1.00(a) 4.24 21 1.31
(0.14) 10.03 0.03 1,623 1.00+(a) 4.25+ 4 1.33+
(0.43) 10.17 15.02 1,352 0.95(a) 4.41 31 1.34
(0.40) 9.24 (5.00) 943 0.85+(a) 4.09+ 51 1.38+
$(0.49) $10.30 4.80% $ 1,511 1.21%(a) 3.84% 40% 1.68%
(0.46) 10.30 7.62 1,590 1.20(a) 3.95 47 1.44
(0.43) 10.01 4.11 756 1.00(a) 4.24 21 1.31
(0.14) 10.03 0.03 716 1.00+(a) 4.25+ 4 1.33+
(0.43) 10.17 14.96 359 0.95(a) 4.41 31 1.34
(0.03) 9.24 (0.52) 2 0.85+(a) 4.09+ 51 1.38+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
223
<PAGE> 228
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MUNICIPAL INCOME
PRIMARY A SHARES
Year ended 3/31/1999............... $11.46 $0.54 $ 0.07 $ 0.61 $(0.54) $(0.05)
Year ended 3/31/1998............... 10.89 0.57 0.62 1.19 (0.57) (0.05)
Year ended 3/31/1997............... 10.84 0.59 0.05 0.64 (0.59) --
Period ended 3/31/1996(b).......... 11.08 0.20 (0.24) (0.04) (0.20) --
Year ended 11/30/1995.............. 9.64 0.59 1.44 2.03 (0.59) --
Year ended 11/30/1994.............. 11.33 0.57 (1.44) (0.87) (0.57)# (0.25)
INVESTOR A SHARES
Year ended 3/31/1999............... $11.46 $0.52 $ 0.07 $ 0.59 $(0.52) $(0.05)
Year ended 3/31/1998............... 10.89 0.54 0.62 1.16 (0.54) (0.05)
Year ended 3/31/1997............... 10.84 0.57 0.05 0.62 (0.57) --
Period ended 3/31/1996(b).......... 11.08 0.19 (0.24) (0.05) (0.19) --
Year ended 11/30/1995.............. 9.64 0.57 1.44 2.01 (0.57) --
Year ended 11/30/1994.............. 11.33 0.55 (1.44) (0.89) (0.55)# (0.25)
INVESTOR B SHARES
Year ended 3/31/1999............... $11.46 $0.44 $ 0.08 $ 0.52 $(0.45) $(0.05)
Year ended 3/31/1998............... 10.89 0.48 0.62 1.10 (0.48) (0.05)
Year ended 3/31/1997............... 10.84 0.51 0.05 0.56 (0.51) --
Period ended 3/31/1996(b).......... 11.08 0.17 (0.24) (0.07) (0.17) --
Year ended 11/30/1995.............. 9.64 0.51 1.44 1.95 (0.51) --
Year ended 11/30/1994.............. 11.33 0.49 (1.44) (0.95) (0.49)# (0.25)
INVESTOR C SHARES
Year ended 3/31/1999............... $11.46 $0.46 $ 0.07 $ 0.53 $(0.46) $(0.05)
Year ended 3/31/1998............... 10.89 0.49 0.62 1.11 (0.49) (0.05)
Year ended 3/31/1997............... 10.84 0.53 0.05 0.58 (0.53) --
Period ended 3/31/1996(b).......... 11.08 0.18 (0.24) (0.06) (0.18) --
Year ended 11/30/1995.............. 9.64 0.51 1.44 1.95 (0.51) --
Year ended 11/30/1994.............. 11.33 0.49 (1.44) (0.95) (0.49)# (0.25)
</TABLE>
- ---------------
<TABLE>
<C> <S>
+ Annualized.
++ Total return represents aggregate total return for the
period indicated, assumes reinvestment of all distributions,
and does not reflect the deduction of any applicable sales
charges.
# Amount includes distributions in excess of net investment
income, which were less than $0.01 per share.
(a) The effect of interest expense on the operating expense
ratio was less than 0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the
fiscal year end was November 30.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
224
<PAGE> 229
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET ASSETS INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCLUDING INCOME PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE INTEREST TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS EXPENSES NET ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.59) $11.48 5.42% $635,629 0.60% -- 4.71% 11% 0.80%
(0.62) 11.46 11.12 456,485 0.60 (a) 4.97 38 0.84
(0.59) 10.89 6.03 77,260 0.60 (a) 5.41 25 0.91
(0.20) 10.84 (0.41) 68,022 0.60+ (a) 5.35+ 4 0.91+
(0.59) 11.08 21.55 68,836 0.60 (a) 5.63 49 0.88
(0.82) 9.64 (8.17) 59,279 0.61 0.62% 5.42 63 0.90
$(0.57) $11.48 5.21% $ 28,625 0.80% -- 4.51% 11% 1.05%
(0.59) 11.46 10.89 19,226 0.80 (a) 4.77 38 1.04
(0.57) 10.89 5.82 15,075 0.80 (a) 5.21 25 1.11
(0.19) 10.84 (0.47) 26,085 0.80+ (a) 5.15+ 4 1.11+
(0.57) 11.08 21.31 27,963 0.80 (a) 5.43 49 1.08
(0.80) 9.64 (8.34) 23,754 0.79 0.80% 5.24 63 1.08
$(0.50) $11.48 4.53% $ 13,810 1.45% -- 3.86% 11% 1.80%
(0.53) 11.46 10.23 15,383 1.42 (a) 4.15 38 1.66
(0.51) 10.89 5.24 14,615 1.35 (a) 4.66 25 1.66
(0.17) 10.84 (0.66) 16,870 1.35+ (a) 4.60+ 4 1.66+
(0.51) 11.08 20.65 18,165 1.35 (a) 4.88 49 1.63
(0.74) 9.64 (8.86) 17,101 1.36 1.37% 4.67 63 1.65
$(0.51) $11.48 4.64% $ 2,150 1.36% -- 3.95% 11% 1.80%
(0.54) 11.46 10.37 2,444 1.33 (a) 4.24 38 1.57
(0.53) 10.89 5.50 1,713 1.10 (a) 4.91 25 1.41
(0.18) 10.84 (0.60) 2,173 1.16+ (a) 4.79+ 4 1.47+
(0.51) 11.08 20.65 2,268 1.35 (a) 4.88 49 1.63
(0.74) 9.64 (8.86) 3,064 1.36 1.37% 4.67 63 1.65
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
225
<PAGE> 230
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FLORIDA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............... $10.77 $0.50 $ 0.02 $ 0.52 $(0.50) --
Year ended 3/31/1998............... 10.40 0.50 0.37 0.87 (0.50) --
Year ended 3/31/1997............... 10.46 0.49 (0.06) 0.43 (0.49) --
Period ended 3/31/1996(b).......... 10.63 0.17 (0.17) 0.00 (0.17) --
Year ended 11/30/1995.............. 9.61 0.48 1.02 1.50 (0.48) --
Year ended 11/30/1994.............. 10.50 0.45 (0.88) (0.43) (0.45)# $(0.01)
INVESTOR A SHARES
Year ended 3/31/1999............... $10.77 $0.48 $ 0.02 $ 0.50 $(0.48) --
Year ended 3/31/1998............... 10.40 0.48 0.37 0.85 (0.48) --
Year ended 3/31/1997............... 10.46 0.47 (0.06) 0.41 (0.47) --
Period ended 3/31/1996(b).......... 10.63 0.16 (0.17) (0.01) (0.16) --
Year ended 11/30/1995.............. 9.61 0.46 1.02 1.48 (0.46) --
Year ended 11/30/1994.............. 10.50 0.43 (0.88) (0.45) (0.43)# $(0.01)
INVESTOR B SHARES
Year ended 3/31/1999............... $10.77 $0.42 $ 0.02 $ 0.44 $(0.42) --
Year ended 3/31/1998............... 10.40 0.43 0.37 0.80 (0.43) --
Year ended 3/31/1997............... 10.46 0.44 (0.06) 0.38 (0.44) --
Period ended 3/31/1996(b).......... 10.63 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995.............. 9.61 0.43 1.02 1.45 (0.43) --
Year ended 11/30/1994.............. 10.50 0.40 (0.88) (0.48) (0.40)# $(0.01)
INVESTOR C SHARES
Year ended 3/31/1999............... $10.77 $0.41 $ 0.03 $ 0.44 $(0.42) --
Year ended 3/31/1998(c)............ 10.40 0.43 0.37 0.80 (0.43) --
Year ended 3/31/1997............... 10.46 0.44 (0.06) 0.38 (0.44) --
Period ended 3/31/1996(b).......... 10.63 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995.............. 9.61 0.43 1.02 1.45 (0.43) --
Year ended 11/30/1994.............. 10.50 0.39 (0.88) (0.49) (0.39)# $(0.01)
</TABLE>
- ---------------
<TABLE>
<C> <S>
+ Annualized.
++ Total return represents aggregate total return for the
period indicated, assumes reinvestment of all distributions,
and does not reflect the deduction of any applicable sales
charges.
# Amount includes distributions in excess of net investment
income, which were less than $0.01 per share.
(a) The effect of interest expense on the operating expense
ratio was less than 0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the
fiscal year end was November 30.
(c) Per share net investment income has been calculated using
the monthly average shares method.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
226
<PAGE> 231
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.50) $10.79 4.95% $234,530 0.50% 4.65% 14% 0.72%
(0.50) 10.77 8.55 203,710 0.50(a) 4.74 13 0.76
(0.49) 10.40 4.22 51,748 0.50(a) 4.72 16 0.81
(0.17) 10.46 (0.06) 44,988 0.50+(a) 4.66+ 18 0.86+
(0.48) 10.63 15.92 44,038 0.55(a) 4.70 27 0.81
(0.46) 9.61 (4.26) 42,717 0.55(a) 4.44 34 0.76
$(0.48) $10.79 4.74% $ 12,783 0.70% 4.45% 14% 0.97%
(0.48) 10.77 8.34 7,205 0.70(a) 4.54 13 0.96
(0.47) 10.40 4.01 2,142 0.70(a) 4.52 16 1.01
(0.16) 10.46 (0.13) 2,029 0.70+(a) 4.46+ 18 1.06+
(0.46) 10.63 15.68 2,292 0.75(a) 4.50 27 1.01
(0.44) 9.61 (4.43) 2,114 0.73(a) 4.26 34 0.94
$(0.42) $10.79 4.11% $ 5,090 1.30% 3.85% 14% 1.72%
(0.43) 10.77 7.80 3,606 1.20(a) 4.04 13 1.46
(0.44) 10.40 3.70 3,488 1.00(a) 4.22 16 1.31
(0.15) 10.46 (0.23) 4,001 1.00+(a) 4.16+ 18 1.36+
(0.43) 10.63 15.34 4,775 1.05(a) 4.20 27 1.31
(0.41) 9.61 (4.73) 4,691 1.05(a) 3.94 34 1.26
$(0.42) $10.79 4.10% $ 1,416 1.36% 3.79% 14% 1.72%
(0.43) 10.77 7.80 188 1.20(a) 4.04 13 1.46
(0.44) 10.40 3.71 272 1.00(a) 4.22 16 1.31
(0.15) 10.46 (0.23) 275 1.00+(a) 4.16+ 18 1.36+
(0.43) 10.63 15.34 277 1.05(a) 4.20 27 1.31
(0.40) 9.61 (4.81) 614 1.13(a) 3.86 34 1.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
227
<PAGE> 232
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS
VALUE NET AND UNREALIZED NET ASSET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FLORIDA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999........................ $9.99 $0.48 $ 0.00 $ 0.48 $(0.48)
Year ended 3/31/1998........................ 9.48 0.48 0.51 0.99 (0.48)
Year ended 3/31/1997........................ 9.47 0.48 0.01 0.49 (0.48)
Period ended 3/31/1996(b)................... 9.76 0.16 (0.29) (0.13) (0.16)
Year ended 11/30/1995....................... 8.40 0.51 1.36 1.87 (0.51)
Period ended 11/30/1994*.................... 9.93 0.49 (1.53) (1.04) (0.49)
INVESTOR A SHARES
Year ended 3/31/1999........................ $9.99 $0.46 $ 0.00 $ 0.46 $(0.46)
Year ended 3/31/1998........................ 9.48 0.46 0.51 0.97 (0.46)
Year ended 3/31/1997........................ 9.47 0.46 0.01 0.47 (0.46)
Period ended 3/31/1996(b)................... 9.76 0.15 (0.29) (0.14) (0.15)
Year ended 11/30/1995....................... 8.40 0.49 1.36 1.85 (0.49)
Period ended 11/30/1994*.................... 9.98 0.47 (1.58) (1.11) (0.47)
INVESTOR B SHARES
Year ended 3/31/1999........................ $9.99 $0.40 $ 0.00 $ 0.40 $(0.40)
Year ended 3/31/1998........................ 9.48 0.40 0.51 0.91 (0.40)
Year ended 3/31/1997........................ 9.47 0.41 0.01 0.42 (0.41)
Period ended 3/31/1996(b)................... 9.76 0.14 (0.29) (0.15) (0.14)
Year ended 11/30/1995....................... 8.40 0.44 1.36 1.80 (0.44)
Year ended 11/30/1994....................... 9.73 0.45 (1.33) (0.88) (0.45)
INVESTOR C SHARES
Year ended 3/31/1999(c)..................... $9.99 $0.37 $ 0.03 $ 0.40 $(0.40)
Year ended 3/31/1998(c)..................... 9.48 0.41 0.51 0.92 (0.41)
Year ended 3/31/1997........................ 9.47 0.44 0.01 0.45 (0.44)
Period ended 3/31/1996(b)................... 9.76 0.14 (0.29) (0.15) (0.14)
Year ended 11/30/1995....................... 8.40 0.44 1.36 1.80 (0.44)
Period ended 11/30/1994*.................... 8.47 0.03 (0.07) (0.04) (0.03)
</TABLE>
- ---------------
* Florida Municipal Bond Primary A, Investor A and Investor C Shares commenced
operations on December 13, 1993, December 10, 1993 and November 3, 1994,
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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
228
<PAGE> 233
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$9.99 4.90% $77,197 0.60%(a) 4.80% 16% 0.85%
9.99 10.60 27,378 0.60(a) 4.85 19 0.90
9.48 5.29 16,702 0.60(a) 5.07 23 0.93
9.47 (1.33) 13,044 0.60+(a) 5.03+ 7 0.96+
9.76 22.69 11,219 0.39(a) 5.44 13 0.95
8.40 (10.70) 4,258 0.21+(a) 5.55+ 46 0.91+
$9.99 4.69% $65,373 0.80%(a) 4.60% 16% 1.10%
9.99 10.38 2,027 0.80(a) 4.65 19 1.10
9.48 5.09 1,781 0.80(a) 4.87 23 1.13
9.47 (1.40) 1,836 0.80+(a) 4.83+ 7 1.16+
9.76 22.45 1,787 0.59 5.24 13 1.15
8.40 (11.35) 1,024 0.39+(a) 5.37+ 46 1.09+
$9.99 4.01% $15,435 1.45%(a) 3.95% 16% 1.85%
9.99 9.71 17,048 1.42(a) 4.03 19 1.72
9.48 4.52 19,751 1.35(a) 4.32 23 1.68
9.47 (1.58) 23,947 1.35+(a) 4.28+ 7 1.71+
9.76 21.78 25,398 1.14(a) 4.69 13 1.70
8.40 (9.37) 19,868 0.96(a) 4.80 46 1.66
$9.99 4.01% $ 23 1.53%(a) 3.87% 16% 1.85%
9.99 9.83 3 1.33(a) 4.12 19 1.63
9.48 4.78 40 1.10(a) 4.57 23 1.43
9.47 (1.52) 38 1.15+(a) 4.48+ 7 1.51+
9.76 21.80 38 1.14(a) 4.69 13 1.70
8.40 (0.43) 2 0.96+(a) 4.80+ 46 1.66+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
229
<PAGE> 234
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GEORGIA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999........... $10.92 $0.49 $ 0.07 $ 0.56 $(0.50) $(0.04)
Year ended 3/31/1998........... 10.58 0.49 0.38 0.87 (0.49) (0.04)
Year ended 3/31/1997........... 10.63 0.50 (0.05) 0.45 (0.50) --
Period ended 3/31/1996(b)...... 10.81 0.17 (0.18) (0.01) (0.17) --
Year ended 11/30/1995.......... 9.82 0.50 0.99 1.49 (0.50) --
Year ended 11/30/1994.......... 10.82 0.49 (0.98) (0.49) (0.49)# (0.02)
INVESTOR A SHARES
Year ended 3/31/1999........... $10.92 $0.47 $ 0.06 $ 0.53 $(0.47) $(0.04)
Year ended 3/31/1998........... 10.58 0.47 0.38 0.85 (0.47) (0.04)
Year ended 3/31/1997........... 10.63 0.48 (0.05) 0.43 (0.48) --
Period ended 3/31/1996(b)...... 10.81 0.16 (0.18) (0.02) (0.16) --
Year ended 11/30/1995.......... 9.82 0.48 0.99 1.47 (0.48) --
Year ended 11/30/1994.......... 10.82 0.47 (0.98) (0.51) (0.47)# (0.02)
INVESTOR B SHARES
Year ended 3/31/1999........... $10.92 $0.41 $ 0.06 $ 0.47 $(0.41) $(0.04)
Year ended 3/31/1998........... 10.58 0.42 0.38 0.80 (0.42) (0.04)
Year ended 3/31/1997........... 10.63 0.45 (0.05) 0.40 (0.45) --
Period ended 3/31/1996(b)...... 10.81 0.15 (0.18) (0.03) (0.15) --
Year ended 11/30/1995.......... 9.82 0.45 0.99 1.44 (0.45) --
Year ended 11/30/1994.......... 10.82 0.44 (0.98) (0.54) (0.44)# (0.02)
INVESTOR C SHARES
Year ended 3/31/1999........... $10.92 $0.41 $ 0.05 $ 0.46 $(0.40) $(0.04)
Year ended 3/31/1998(c)........ 10.58 0.42 0.38 0.80 (0.42) (0.04)
Year ended 3/31/1997........... 10.63 0.45 (0.05) 0.40 (0.45) --
Period ended 3/31/1996(b)...... 10.81 0.15 (0.18) (0.03) (0.15) --
Year ended 11/30/1995.......... 9.82 0.45 0.99 1.44 (0.45) --
Year ended 11/30/1994.......... 10.82 0.43 (0.98) (0.55) (0.43)# (0.02)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
230
<PAGE> 235
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET ASSETS INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCLUDING INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE INTEREST AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS EXPENSES NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.54) $10.94 5.20% $132,016 0.50% (a) 4.51% 14% 0.73%
(0.53) 10.92 8.45 125,654 0.50 (a) 4.54 25 0.75
(0.50) 10.58 4.33 43,470 0.50 (a) 4.72 9 0.80
(0.17) 10.63 (0.13) 38,222 0.50+ (a) 4.67+ 3 0.83+
(0.50) 10.81 15.42 40,383 0.55 (a) 4.76 17 0.80
(0.51) 9.82 (4.70) 33,111 0.54 0.55% 4.74 22 0.75
$(0.51) $10.94 4.99% $ 19,674 0.70% (a) 4.31% 14% 0.98%
(0.51) 10.92 8.24 9,446 0.70 (a) 4.34 25 0.95
(0.48) 10.58 4.12 8,810 0.70 (a) 4.52 9 1.00
(0.16) 10.63 (0.19) 8,625 0.70+ (a) 4.47+ 3 1.03+
(0.48) 10.81 15.20 9,175 0.75 (a) 4.56 17 1.00
(0.49) 9.82 (4.87) 10,401 0.72 0.73% 4.56 22 0.93
$(0.45) $10.94 4.37% $ 8,310 1.30% (a) 3.71% 14% 1.73%
(0.46) 10.92 7.70 7,378 1.20 (a) 3.84 25 1.45
(0.45) 10.58 3.81 7,601 1.00 (a) 4.22 9 1.30
(0.15) 10.63 (0.29) 8,098 1.00+ (a) 4.17+ 3 1.33+
(0.45) 10.81 14.85 8,160 1.05 (a) 4.26 17 1.30
(0.46) 9.82 (5.17) 7,269 1.04 1.05% 4.24 22 1.25
$(0.44) $10.94 4.35% $ 886 1.31% (a) 3.70% 14% 1.73%
(0.46) 10.92 7.70 1,034 1.20 (a) 3.84 25 1.45
(0.45) 10.58 3.81 1,983 1.00 (a) 4.22 9 1.30
(0.15) 10.63 (0.29) 2,445 1.00+ (a) 4.17+ 3 1.33+
(0.45) 10.81 14.85 2,606 1.05 (a) 4.26 17 1.30
(0.45) 9.82 (5.25) 2,397 1.12 1.13% 4.16 22 1.33
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
231
<PAGE> 236
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS
VALUE NET AND UNREALIZED NET ASSET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GEORGIA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999.................... $10.00 $0.46 $ 0.12 $ 0.58 $(0.46)
Year ended 3/31/1998.................... 9.50 0.47 0.50 0.97 (0.47)
Year ended 3/31/1997.................... 9.48 0.47 0.02 0.49 (0.47)
Period ended 3/31/1996(b)............... 9.72 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995................... 8.38 0.51 1.34 1.85 (0.51)
Period ended 11/30/1994*................ 10.02 0.46 (1.64) (1.18) (0.46)
INVESTOR A SHARES
Year ended 3/31/1999.................... $10.00 $0.44 $ 0.12 $ 0.56 $(0.44)
Year ended 3/31/1998.................... 9.50 0.45 0.50 0.95 (0.45)
Year ended 3/31/1997.................... 9.48 0.45 0.02 0.47 (0.45)
Period ended 3/31/1996(b)............... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995................... 8.38 0.49 1.34 1.83 (0.49)
Period ended 11/30/1994*................ 9.99 0.47 (1.61) (1.14) (0.47)
INVESTOR B SHARES
Year ended 3/31/1999.................... $10.00 $0.37 $ 0.12 $ 0.49 $(0.37)
Year ended 3/31/1998.................... 9.50 0.39 0.50 0.89 (0.39)
Year ended 3/31/1997.................... 9.48 0.40 0.02 0.42 (0.40)
Period ended 3/31/1996(b)............... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995................... 8.38 0.44 1.34 1.78 (0.44)
Year ended 11/30/1994................... 9.81 0.45 (1.43) (0.98) (0.45)
INVESTOR C SHARES
Year ended 3/31/1999.................... $10.00 $0.37 $ 0.12 $ 0.49 $(0.37)
Year ended 3/31/1998(c)................. 9.50 0.40 0.50 0.90 (0.40)
Year ended 3/31/1997.................... 9.48 0.42 0.02 0.44 (0.42)
Period ended 3/31/1996(b)............... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995................... 8.38 0.44 1.34 1.78 (0.44)
Period ended 11/30/1994*................ 8.45 0.03 (0.07) (0.04) (0.03)
</TABLE>
- ---------------
* Georgia Municipal Bond Primary A, Investor A and Investor C Shares commenced
operations on January 13, 1994, December 30, 1993 and November 3, 1994,
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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
232
<PAGE> 237
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.12 5.89% $ 9,719 0.60% 4.53% 17% 1.18%
10.00 10.43 8,138 0.60(a) 4.82 30 1.02
9.50 5.29 5,550 0.60(a) 4.96 19 1.05
9.48 (0.84) 2,068 0.60+(a) 4.96+ 7 1.14+
9.72 22.48 2,628 0.40(a) 5.42 26 1.09
8.38 (12.07) 232 0.21+(a) 5.60+ 35 1.04+
$10.12 5.68% $ 2,611 0.80% 4.33% 17% 1.43%
10.00 10.22 483 0.80(a) 4.62 30 1.22
9.50 5.05 208 0.80(a) 4.76 19 1.25
9.48 (1.08) 7 0.80+(a) 4.76+ 7 1.34+
9.72 22.25 7 0.60(a) 5.22 26 1.29
8.38 (11.71) 6 0.39+(a) 5.42+ 35 1.22+
$10.12 5.00% $11,348 1.45% 3.68% 17% 2.18%
10.00 9.54 10,052 1.42(a) 4.00 30 1.84
9.50 4.50 10,182 1.35(a) 4.21 19 1.80
9.48 (1.09) 12,254 1.35+(a) 4.21+ 7 1.89+
9.72 21.58 13,017 1.15(a) 4.67 26 1.84
8.38 (10.28) 9,500 0.96(a) 4.85 35 1.79
$10.12 4.97% $ 3 1.49% 3.64% 17% 2.18%
10.00 9.64 27 1.33(a) 4.09 30 1.75
9.50 4.77 72 1.10(a) 4.46 19 1.55
9.48 (1.03) 69 1.16+(a) 4.40+ 7 1.70+
9.72 21.59 69 1.15(a) 4.67 26 1.84
8.38 (0.44) 2 0.96+(a) 4.85+ 35 1.79+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
233
<PAGE> 238
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............... $11.01 $0.50 $ 0.06 $ 0.56 $(0.50) --
Year ended 3/31/1998............... 10.70 0.51 0.31 0.82 (0.51) --
Year ended 3/31/1997............... 10.80 0.51 (0.10) 0.41 (0.51) --
Period ended 3/31/1996(b).......... 10.95 0.17 (0.15) 0.02 (0.17) --
Year ended 11/30/1995.............. 10.00 0.51 0.98 1.49 (0.51) $(0.03)
Year ended 11/30/1994.............. 11.09 0.50 (0.99) (0.49) (0.50) (0.10)
INVESTOR A SHARES
Year ended 3/31/1999............... $11.01 $0.48 $ 0.06 $ 0.54 $(0.48) --
Year ended 3/31/1998............... 10.70 0.49 0.31 0.80 (0.49) --
Year ended 3/31/1997............... 10.80 0.48 (0.10) 0.38 (0.48) --
Period ended 3/31/1996(b).......... 10.95 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995.............. 10.00 0.48 0.98 1.46 (0.48) $(0.03)
Year ended 11/30/1994.............. 11.09 0.48 (0.99) (0.51) (0.48) (0.10)
INVESTOR B SHARES
Year ended 3/31/1999............... $11.01 $0.41 $ 0.06 $ 0.47 $(0.41) --
Year ended 3/31/1998............... 10.70 0.43 0.31 0.74 (0.43) --
Year ended 3/31/1997............... 10.80 0.45 (0.10) 0.35 (0.45) --
Period ended 3/31/1996(b).......... 10.95 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995.............. 10.00 0.45 0.98 1.43 (0.45) $(0.03)
Year ended 11/30/1994.............. 11.09 0.45 (0.99) (0.54) (0.45) (0.10)
INVESTOR C SHARES
Year ended 3/31/1999............... $11.01 $0.41 $ 0.06 $ 0.47 $(0.41) --
Year ended 3/31/1998............... 10.70 0.43 0.31 0.74 (0.43) --
Year ended 3/31/1997............... 10.80 0.45 (0.10) 0.35 (0.45) --
Period ended 3/31/1996(b).......... 10.95 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995.............. 10.00 0.45 0.98 1.43 (0.45) $(0.03)
Year ended 11/30/1994.............. 11.09 0.44 (0.99) (0.55) (0.44) (0.10)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
234
<PAGE> 239
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATE OF
DISTRIBUTIONS TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
IN EXCESS OF DIVIDENDS VALUE END OF EXPENSES TO INCOME PORTFOLIO EXPENSES TO
NET REALIZED AND END OF TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER AVERAGE
CAPITAL GAINS DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-- $(0.50) $11.07 5.17% $183,356 0.50% 4.51% 22% 0.74%
-- (0.51) 11.01 7.83 84,715 0.50 4.63 12 0.80
-- (0.51) 10.70 3.83 63,549 0.50(a) 4.70 10 0.78
-- (0.17) 10.80 0.16 61,337 0.50+(a) 4.62+ 4 0.81+
-- (0.54) 10.95 15.16 62,460 0.55(a) 4.76 11 0.80
$(0.00)# (0.60) 10.00 (4.64) 61,349 0.53(a) 4.73 22 0.73
-- $(0.48) $11.07 4.96% $ 17,166 0.70% 4.31% 22% 0.99%
-- (0.49) 11.01 7.61 15,558 0.70 4.43 12 1.00
-- (0.48) 10.70 3.62 14,988 0.70(a) 4.50 10 0.98
-- (0.16) 10.80 0.09 19,456 0.70+(a) 4.42+ 4 1.01+
-- (0.51) 10.95 14.94 21,208 0.75(a) 4.56 11 1.00
$(0.00)# (0.58) 10.00 (4.82) 22,145 0.71(a) 4.55 22 0.91
-- $(0.41) $11.07 4.33% $ 5,989 1.30% 3.71% 22% 1.74%
-- (0.43) 11.01 7.07 4,804 1.20 3.93 12 1.50
-- (0.45) 10.70 3.31 4,299 1.00(a) 4.20 10 1.28
-- (0.15) 10.80 (0.01) 4,500 1.00+(a) 4.12+ 4 1.31+
-- (0.48) 10.95 14.59 4,485 1.05(a) 4.26 11 1.30
$(0.00)# (0.55) 10.00 (5.12) 4,368 1.03(a) 4.23 22 1.23
-- $(0.41) $11.07 4.31% $ 561 1.32% 3.69% 22% 1.74%
-- (0.43) 11.01 7.07 840 1.20 3.93 12 1.50
-- (0.45) 10.70 3.31 2,017 1.00(a) 4.2 10 1.28
-- (0.15) 10.80 (0.01) 2,900 1.00+(a) 4.12+ 4 1.31+
-- (0.48) 10.95 14.59 2,808 1.05(a) 4.26 11 1.30
$(0.00)# (0.54) 10.00 (5.20) 2,570 1.11(a) 4.15 22 1.31
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
235
<PAGE> 240
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............... $9.94 $0.43 $ 0.05 $ 0.48 $(0.43) $(0.00)#
Year ended 3/31/1998............... 9.41 0.45 0.53 0.98 (0.45) --
Year ended 3/31/1997............... 9.39 0.46 0.02 0.48 (0.46) --
Period ended 3/31/1996(b).......... 9.63 0.15 (0.24) (0.09) (0.15) --
Year ended 11/30/1995.............. 8.37 0.48 1.26 1.74 (0.48) --
Period ended 11/30/1994*........... 8.90 0.11 (0.53) (0.42) (0.11) --
INVESTOR A SHARES
Year ended 3/31/1999............... $9.94 $0.41 $ 0.05 $ 0.46 $(0.41) $(0.00)#
Year ended 3/31/1998............... 9.41 0.43 0.53 0.96 (0.43) --
Year ended 3/31/1997............... 9.39 0.44 0.02 0.46 (0.44) --
Period ended 3/31/1996(b).......... 9.63 0.14 (0.24) (0.10) (0.14) --
Year ended 11/30/1995.............. 8.37 0.46 1.26 1.72 (0.46) --
Year ended 11/30/1994.............. 9.77 0.49 (1.40) (0.91) (0.49) --
INVESTOR B SHARES
Year ended 3/31/1999............... $9.94 $0.35 $ 0.05 $ 0.40 $(0.35) $(0.00)#
Year ended 3/31/1998............... 9.41 0.37 0.53 0.90 (0.37) --
Year ended 3/31/1997............... 9.39 0.39 0.02 0.41 (0.39) --
Period ended 3/31/1996(b).......... 9.63 0.13 (0.24) (0.11) (0.13) --
Year ended 11/30/1995.............. 8.37 0.41 1.26 1.67 (0.41) --
Year ended 11/30/1994.............. 9.77 0.44 (1.40) (0.96) (0.44) --
INVESTOR C SHARES
Year ended 3/31/1999............... $9.94 $0.34 $ 0.05 $ 0.39 $(0.34) $(0.00)#
Year ended 3/31/1998............... 9.41 0.39 0.53 0.92 (0.39) --
Year ended 3/31/1997............... 9.39 0.42 0.02 0.44 (0.42) --
Period ended 3/31/1996(b).......... 9.63 0.13 (0.24) (0.11) (0.13) --
Year ended 11/30/1995.............. 8.37 0.41 1.26 1.67 (0.41) --
Period ended 11/30/1994*........... 8.44 0.03 (0.07) (0.04) (0.03) --
</TABLE>
- ---------------
* Maryland Municipal Bond Primary A and Investor C Shares commenced operations
on September 20, 1994 and November 3, 1994, 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 represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
236
<PAGE> 241
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.43) $9.99 4.92% $17,033 0.60% 4.29% 22% 1.07%
(0.45) 9.94 10.62 9,049 0.60 4.61 17 1.07
(0.46) 9.41 5.20 4,596 0.60 4.88 18 1.12
(0.15) 9.39 (0.95) 2,788 0.60+ 4.72+ 7 1.23+
(0.48) 9.63 21.23 2,595 0.40 5.14 11 1.26
(0.11) 8.37 (4.89) 39 0.21+(a) 5.48+ 39 1.30+
$(0.41) $9.99 4.71% $ 1,751 0.80% 4.09% 22% 1.32%
(0.43) 9.94 10.40 1,902 0.80% 4.41 17 1.27
(0.44) 9.41 4.99 1,409 0.80 4.68 18 1.32
(0.14) 9.39 (1.01) 1,086 0.80+ 4.52+ 7 1.43+
(0.46) 9.63 20.99 1,031 0.60 4.94 11 1.46
(0.49) 8.37 (9.59) 9 0.39(a) 5.30 39 1.48
$(0.35) $9.99 4.03% $16,124 1.45% 3.44% 22% 2.07%
(0.37) 9.94 9.72 11,071 1.42 3.79 17 1.89
(0.39) 9.41 4.42 8,099 1.35 4.13 18 1.87
(0.13) 9.39 (1.19) 9,662 1.35+ 3.97+ 7 1.98+
(0.41) 9.63 20.33 10,002 1.15 4.39 11 2.01
(0.44) 8.37 (10.11) 4,819 0.96(a) 4.73 39 2.05
$(0.34) $9.99 4.01% $ 3 1.47% 3.42% 22% 2.07%
(0.39) 9.94 9.88 3 1.33% 3.88 17 1.80
(0.42) 9.41 4.73 2 1.10 4.38 18 1.62
(0.13) 9.39 (1.13) 2 1.16+ 4.16+ 7 1.79+
(0.41) 9.63 20.29 2 1.15 4.39 11 2.01
(0.03) 8.37 (0.45) 2 0.96+(a) 4.73+ 39 2.05+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
237
<PAGE> 242
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............ $10.70 $0.49 $ 0.04 $ 0.53 $(0.49) $(0.03)
Year ended 3/31/1998............ 10.34 0.49 0.36 0.85 (0.49) --
Year ended 3/31/1997............ 10.36 0.47 (0.02) 0.45 (0.47) --
Period ended 3/31/1996(b)....... 10.51 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995........... 9.53 0.45 0.99 1.44 (0.45)# (0.01)
Year ended 11/30/1994........... 10.46 0.44 (0.88) (0.44) (0.44) (0.05)
INVESTOR A SHARES
Year ended 3/31/1999............ $10.70 $0.47 $ 0.04 $ 0.51 $(0.47) $(0.03)
Year ended 3/31/1998............ 10.34 0.47 (0.36) 0.83 (0.47) --
Year ended 3/31/1997............ 10.36 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996(b)....... 10.51 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995........... 9.53 0.43 0.99 1.42 (0.43)# (0.01)
Year ended 11/30/1994........... 10.46 0.42 (0.88) (0.46) (0.42) (0.05)
INVESTOR B SHARES
Year ended 3/31/1999............ $10.70 $0.40 $ 0.04 $ 0.44 $(0.40) $(0.03)
Year ended 3/31/1998............ 10.34 0.42 0.36 0.78 (0.42) --
Year ended 3/31/1997............ 10.36 0.42 (0.02) 0.40 (0.42) --
Period ended 3/31/1996(b)....... 10.51 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995........... 9.53 0.40 0.99 1.39 (0.40)# (0.01)
Year ended 11/30/1994........... 10.46 0.39 (0.88) (0.49) (0.39) (0.05)
INVESTOR C SHARES
Year ended 3/31/1999............ $10.70 $0.42 $ 0.02 $ 0.44 $(0.40) $(0.03)
Year ended 3/31/1998............ 10.34 0.42 0.36 0.78 (0.42) --
Year ended 3/31/1997............ 10.36 0.42 (0.02) 0.40 (0.42) --
Period ended 3/31/1996(b)....... 10.51 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995........... 9.53 0.40 0.99 1.39 (0.40)# (0.01)
Year ended 11/30/1994........... 10.46 0.38 (0.88) (0.50) (0.38) (0.05)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
238
<PAGE> 243
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.52) $10.71 5.03% $193,398 0.50% 4.57% 16% 0.71%
(0.49) 10.70 8.39 179,729 0.50(a) 4.69 21 0.76
(0.47) 10.34 4.45 25,855 0.50(a) 4.57 26 0.82
(0.16) 10.36 0.05 21,161 0.50+ 4.47+ 3 0.87+
(0.46) 10.51 15.41 20,916 0.57(a) 4.47 57 0.84
(0.49) 9.53 (4.34) 14,148 0.55(a) 4.38 37 0.82
$(0.50) $10.71 4.82% $ 10,099 0.70% 4.37% 16% 0.96%
(0.47) 10.70 8.17 8,572 0.70(a) 4.49 21 0.96
(0.45) 10.34 4.25 5,723 0.70(a) 4.37 26 1.02
(0.15) 10.36 (0.01) 7,672 0.70+ 4.27+ 3 1.07+
(0.44) 10.51 15.18 8,525 0.77(a) 4.27 57 1.04
(0.47) 9.53 (4.51) 8,896 0.73(a) 4.20 37 1.00
$(0.43) $10.71 4.20% $ 6,671 1.30% 3.77% 16% 1.71%
(0.42) 10.70 7.64 6,859 1.20(a) 3.99 21 1.46
(0.42) 10.34 3.94 6,796 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 8,102 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 7,848 1.07(a) 3.97 57 1.34
(0.44) 9.53 (4.82) 5,706 1.05(a) 3.88 37 1.32
$(0.43) $10.71 4.18% $ 109 1.31% 3.76% 16% 1.71%
(0.42) 10.70 7.64 822 1.20(a) 3.99 21 1.46
(0.42) 10.34 3.94 1,364 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 1,379 1.00+ 3.97 3 1.37+
(0.41) 10.51 14.84 1,366 1.07(a) 3.97 57 1.34
(0.43) 9.53 (4.89) 1,486 1.13(a) 3.80 37 1.40
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
239
<PAGE> 244
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS
VALUE NET AND UNREALIZED NET ASSET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NORTH CAROLINA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999........................ $10.01 $0.45 $ 0.08 $ 0.53 $(0.46)
Year ended 3/31/1998........................ 9.47 0.47 0.54 1.01 (0.47)
Year ended 3/31/1997........................ 9.49 0.47 (0.02) 0.45 (0.47)
Period ended 3/31/1996(b)................... 9.73 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995....................... 8.36 0.50 1.37 1.87 (0.50)
Period ended 11/30/1994*.................... 10.06 0.45 (1.70) (1.25) (0.45)
INVESTOR A SHARES
Year ended 3/31/1999........................ $10.01 $0.43 $ 0.08 $ 0.51 $(0.44)
Year ended 3/31/1998........................ 9.47 0.45 0.54 (0.99) (0.45)
Year ended 3/31/1997........................ 9.49 0.45 (0.02) 0.43 (0.45)
Period ended 3/31/1996(b)................... 9.73 0.15 (0.24) (0.09) (0.15)
Year ended 11/30/1995....................... 8.36 0.49 1.37 1.86 (0.49)
Year ended 11/30/1994....................... 9.85 0.50 (1.49) (0.99) (0.50)
INVESTOR B SHARES
Year ended 3/31/1999........................ $10.01 $0.38 $ 0.07 $ 0.45 $(0.38)
Year ended 3/31/1998........................ 9.47 0.39 0.54 0.93 (0.39)
Year ended 3/31/1997........................ 9.49 0.40 (0.02) 0.38 (0.40)
Period ended 3/31/1996(b)................... 9.73 0.13 (0.24) (0.11) (0.13)
Year ended 11/30/1995....................... 8.36 0.43 1.37 1.80 (0.43)
Year ended 11/30/1994....................... 9.85 0.45 (1.49) (1.04) (0.45)
INVESTOR C SHARES
Year ended 3/31/1999........................ $10.01 $0.37 $ 0.07 $ 0.44 $(0.37)
Year ended 3/31/1998(c)..................... 9.47 0.40 0.54 0.94 0.40
Year ended 3/31/1997........................ 9.49 0.42 (0.02) 0.40 (0.42)
Period ended 3/31/1996(b)................... 9.73 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995....................... 8.36 0.43 1.37 1.80 (0.43)
Period ended 11/30/1994*.................... 8.45 0.03 (0.09) (0.06) (0.03)
</TABLE>
- ---------------
* North Carolina Municipal Bond Primary A and Investor C Shares commenced
operations on January 11, 1994 and November 3, 1994, 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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
240
<PAGE> 245
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.08 5.39% $16,293 0.60%(a) 4.57% 11% 1.00%
10.01 10.86 6,452 0.60(a) 4.78 20 0.93
9.47 4.84 3,095 0.60(a) 4.95 28 0.94
9.49 (0.87) 1,593 0.60+ 4.86+ 22 0.99+
9.73 22.87 1,293 0.38(a) 5.43 40 0.96
8.36 (12.65) 531 0.21+(a) 5.53+ 29 0.92+
$10.08 5.20% $ 1,028 0.80%(a) 4.37% 11% 1.25%
10.01 10.64 609 0.80%(a) 4.58 20 1.13
9.47 4.62 594 0.80(a) 4.75 28 1.14
9.49 (0.94) 448 0.80+ 4.66+ 22 1.19+
9.73 22.63 347 0.58(a) 5.23 40 1.16
8.36 (10.41) 1,161 0.39(a) 5.35 29 1.10
$10.08 4.53% $24,656 1.45%(a) 3.72% 11% 2.00%
10.01 9.96 25,187 1.42%(a) 3.96 20 1.75
9.47 4.06 23,863 1.35(a) 4.20 28 1.69
9.49 (1.12) 28,298 1.35+ 4.11+ 22 1.74+
9.73 21.96 30,048 1.13(a) 4.68 40 1.71
8.36 (10.92) 23,659 0.96(a) 4.78 29 1.67
$10.08 4.50% $ 3 1.47%(a) 3.70% 11% 2.00%
10.01 10.07 3 1.33%(a) 4.05 20 1.66
9.47 4.32 18 1.10(a) 4.45 28 1.44
9.49 (1.04) 17 1.14+ 4.32+ 22 1.53+
9.73 21.93 2 1.13(a) 4.68 40 1.71
8.36 (0.67) 2 0.96+(a) 4.78+ 29 1.67+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
241
<PAGE> 246
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............ $10.79 $0.51 $ 0.04 $ 0.55 $(0.51) $(0.04)
Year ended 3/31/1998............ 10.50 0.52 0.29 0.81 (0.52) 0.00(c)
Year ended 3/31/1997............ 10.52 0.51 (0.02) 0.49 (0.51) --
Period ended 3/31/1996(b)....... 10.69 0.17 (0.17) 0.00 (0.17) --
Year ended 11/30/1995........... 9.76 0.51 0.93 1.44 (0.51) --
Year ended 11/30/1994........... 10.61 0.50 (0.84) (0.34) (0.50)# (0.01)
INVESTOR A SHARES
Year ended 3/31/1999............ $10.79 $0.49 $ 0.04 $ 0.53 $(0.49) $(0.04)
Year ended 3/31/1998............ 10.50 0.50 0.29 0.79 (0.50) 0.00(c)
Year ended 3/31/1997............ 10.52 0.49 (0.02) 0.47 (0.49) --
Period ended 3/31/1996(b)....... 10.69 0.16 (0.17) (0.01) (0.16) --
Year ended 11/30/1995........... 9.76 0.49 0.93 1.42 (0.49) --
Year ended 11/30/1994........... 10.61 0.48 (0.84) (0.36) (0.48)# (0.01)
INVESTOR B SHARES
Year ended 3/31/1999............ $10.79 $0.43 $ 0.04 $ 0.47 $(0.43) $(0.04)
Year ended 3/31/1998............ 10.50 0.44 0.29 0.73 (0.44) 0.00(c)
Year ended 3/31/1997............ 10.52 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996(b)....... 10.69 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995........... 9.76 0.46 0.93 1.39 (0.46) --
Year ended 11/30/1994........... 10.61 0.45 (0.84) (0.39) (0.45)# (0.01)
INVESTOR C SHARES
Year ended 3/31/1999............ $10.79 $0.42 $ 0.04 $ 0.46 $(0.42) $(0.04)
Year ended 3/31/1998............ 10.50 0.44 0.29 0.73 (0.44) 0.00(c)
Year ended 3/31/1997............ 10.52 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996(b)....... 10.69 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995........... 9.76 0.46 0.93 1.39 (0.46) --
Year ended 11/30/1994........... 10.61 0.44 (0.84) (0.40) (0.44)# (0.01)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
## Amount represents less than $0.01%.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Amount represents less than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
242
<PAGE> 247
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.55) $10.79 5.22% $239,195 0.50%(a) 4.75% 9% 0.69%
(0.52) 10.79 7.88 253,090 0.50(a) 4.86 16 0.75
(0.51) 10.50 4.71 48,918 0.50(a) 4.80 13 0.79
(0.17) 10.52 0.00## 41,817 0.50+(a) 4.81+ 6 0.82+
(0.51) 10.69 15.02 45,255 0.55(a) 4.92 11 0.75
(0.51) 9.76 (3.37) 49,030 0.54(a) 4.82 30 0.75
$(0.53) $10.79 5.01% $ 18,729 0.70%(a) 4.55% 9% 0.94%
(0.50) 10.79 7.67 13,945 0.70(a) 4.66 16 0.95
(0.49) 10.50 4.51 10,465 0.70(a) 4.60 13 0.99
(0.16) 10.52 (0.07) 14,288 0.70+(a) 4.61+ 6 1.02+
(0.49) 10.69 14.79 14,452 0.75(a) 4.72 11 0.95
(0.49) 9.76 (3.54) 16,378 0.72(a) 4.64 30 0.93
$(0.47) $10.79 4.39% $ 8,542 1.30%(a) 3.95% 9% 1.69%
(0.44) 10.79 7.13 6,819 1.20(a) 4.16 16 1.45
(0.45) 10.50 4.19 5,738 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 6,968 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 6,457 1.05(a) 4.42 11 1.25
(0.46) 9.76 (3.85) 5,740 1.04(a) 4.32 30 1.25
$(0.46) $10.79 4.36% $ 3,102 1.32%(a) 3.93% 9% 1.69%
(0.44) 10.79 7.13 2,698 1.20(a) 4.16 16 1.45
(0.45) 10.50 4.20 5,089 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 5,409 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 5,527 1.05(a) 4.42 11 1.25
(0.45) 9.76 (3.94) 6,167 1.12(a) 4.24 30 1.33
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
243
<PAGE> 248
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SOUTH CAROLINA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999.............. $10.26 $0.49 $ 0.03 $ 0.52 $(0.48) --
Year ended 3/31/1998.............. 9.79 0.49 0.47 0.96 (0.49) (0.00)#
Year ended 3/31/1997.............. 9.77 0.49 0.02 0.51 (0.49) --
Period ended 3/31/1996(b)......... 9.99 0.17 (0.22) (0.05) (0.17) --
Year ended 11/30/1995............. 8.65 0.52 1.34 1.86 (0.52) --
Period ended 11/30/1994*.......... 10.02 0.48 (1.37) (0.89) (0.48) --
INVESTOR A SHARES
Year ended 3/31/1999.............. $10.26 $0.44 $ 0.06 $ 0.50 $(0.46) --
Year ended 3/31/1998.............. 9.79 0.47 0.47 0.94 (0.47) (0.00)#
Year ended 3/31/1997.............. 9.77 0.47 0.02 0.49 (0.47) --
Period ended 3/31/1996(b)......... 9.99 0.16 (0.22) (0.06) (0.16) --
Year ended 11/30/1995............. 8.65 0.50 1.34 1.84 (0.50) --
Year ended 11/30/1994............. 9.86 0.50 (1.21) (0.71) (0.50) --
INVESTOR B SHARES
Year ended 3/31/1999.............. $10.26 $0.39 $ 0.04 $ 0.43 $(0.39) --
Year ended 3/31/1998.............. 9.79 0.40 0.47 0.87 (0.40) (0.00)#
Year ended 3/31/1997.............. 9.77 0.42 0.02 0.44 (0.42) --
Period ended 3/31/1996(b)......... 9.99 0.14 (0.22) (0.08) (0.14) --
Year ended 11/30/1995............. 8.65 0.45 1.34 1.79 (0.45) --
Year ended 11/30/1994............. 9.86 0.45 (1.21) (0.76) (0.45) --
INVESTOR C SHARES
Year ended 3/31/1999(c)........... $10.26 $0.39 $ 0.04 $ 0.43 $(0.39) --
Year ended 3/31/1998.............. 9.79 0.42 0.47 0.89 (0.42) (0.00)#
Year ended 3/31/1997.............. 9.77 0.44 0.02 0.46 (0.44) --
Period ended 3/31/1996(b)......... 9.99 0.15 (0.22) (0.07) (0.15) --
Year ended 11/30/1995............. 8.65 0.45 1.34 1.79 (0.45) --
Period ended 11/30/1994*.......... 8.73 0.03 (0.08) (0.05) (0.03) --
</TABLE>
- ---------------
* South Carolina Municipal Bond Primary A and Investor C Shares commenced
operations on December 27, 1993 and November 3, 1994, 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 represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
244
<PAGE> 249
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.48) $10.30 5.13% $12,793 0.60% 4.62% 3% 1.18%
(0.49) 10.26 10.04 9,455 0.60%(a) 4.79 9 0.99
(0.49) 9.79 5.32 5,113 0.60(a) 4.99 30 1.00
(0.17) 9.77 (0.57) 2,058 0.60+(a) 4.96+ 20 1.13+
(0.52) 9.99 21.99 1,782 0.40(a) 5.44 13 1.08
(0.48) 8.65 (9.12) 400 0.21+(a) 5.48+ 14 1.12+
$(0.46) $10.30 4.92% $ 1,060 0.80% 4.42% 3% 1.43%
(0.47) 10.26 9.82 1,517 0.80%(a) 4.59 9 1.19
(0.47) 9.79 5.12 811 0.80(a) 4.79 30 1.20
(0.16) 9.77 (0.64) 1,219 0.80+(a) 4.76+ 20 1.33+
(0.50) 9.99 21.74 1,238 0.60(a) 5.24 13 1.28
(0.50) 8.65 (7.45) 140 0.39(a) 5.30 14 1.30
$(0.39) $10.30 4.25% $10,905 1.44% 3.78% 3% 2.18%
(0.40) 10.26 9.15 10,394 1.42%(a) 3.97 9 1.81
(0.42) 9.79 4.54 12,104 1.35(a) 4.24 30 1.75
(0.14) 9.77 (0.82) 12,991 1.35+(a) 4.21+ 20 1.88+
(0.45) 9.99 21.08 12,670 1.15(a) 4.69 13 1.83
(0.45) 8.65 (7.97) 8,263 0.96(a) 4.73 14 1.87
$(0.39) $10.30 4.23% $ 77 1.44% 3.78% 3% 2.18%
(0.42) 10.26 9.29 28 1.33%(a) 4.06 9 1.72
(0.44) 9.79 4.80 247 1.10(a) 4.49 30 1.50
(0.15) 9.77 (0.76) 264 1.17+(a) 4.39+ 20 1.70+
(0.45) 9.99 21.01 20 1.15(a) 4.69 13 1.83
(0.03) 8.65 (0.52) 2 0.96+(a) 4.73+ 14 1.87+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
245
<PAGE> 250
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TENNESSEE INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............. $10.40 $0.47 $ 0.06 $ 0.53 $(0.47) --
Year ended 3/31/1998............. 10.08 0.47 0.32 0.79 (0.47) --
Year ended 3/31/1997............. 10.09 0.46 (0.01) 0.45 (0.46) --
Period ended 3/31/1996(b)........ 10.23 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............ 9.30 0.46 0.93 1.39 (0.46) --
Year ended 11/30/1994............ 10.18 0.45 (0.87) (0.42) (0.45)# $(0.01)
INVESTOR A SHARES
Year ended 3/31/1999............. $10.40 $0.45 $ 0.06 $ 0.51 $(0.45) --
Year ended 3/31/1998............. 10.08 0.45 0.32 0.77 (0.45) --
Year ended 3/31/1997............. 10.09 0.44 (0.01) 0.43 (0.44) --
Period ended 3/31/1996(b)........ 10.23 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............ 9.30 0.44 0.93 1.37 (0.44) --
Year ended 11/30/1994............ 10.18 0.43 (0.87) (0.44) (0.43)# $(0.01)
INVESTOR B SHARES
Year ended 3/31/1999............. $10.40 $0.38 $ 0.06 $ 0.44 $(0.38) --
Year ended 3/31/1998............. 10.08 0.40 0.32 0.72 (0.40) --
Year ended 3/31/1997............. 10.09 0.41 (0.01) 0.40 (0.41) --
Period ended 3/31/1996(b)........ 10.23 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995............ 9.30 0.41 0.93 1.34 (0.41) --
Year ended 11/30/1994............ 10.18 0.40 (0.87) (0.47) (0.40)# $(0.01)
INVESTOR C SHARES
Year ended 3/31/1999............. $10.40 $0.39 $ 0.05 $ 0.44 $(0.39) --
Year ended 3/31/1998............. 10.08 0.40 0.32 0.72 (0.40) --
Year ended 3/31/1997............. 10.09 0.42 (0.01) 0.41 (0.42) --
Period ended 3/31/1996(b)........ 10.23 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995............ 9.30 0.41 0.93 1.34 (0.41) --
Period ended 11/30/1994**........ 9.38 0.03 (0.08) (0.05) (0.03) --
</TABLE>
- ---------------
** Tennessee Intermediate Municipal Bond Investor C Shares commenced operations
on November 3, 1994.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
246
<PAGE> 251
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET ASSETS INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCLUDING INCOME TO PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE INTEREST AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS EXPENSE NET ASSETS RATE NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.47) $10.46 5.18% $42,826 0.50% -- 4.48% 22% 0.85%
(0.47) 10.40 7.99 39,091 0.50 (a) 4.58 38 0.84
(0.46) 10.08 4.54 8,869 0.50 (a) 4.55 28 0.93
(0.15) 10.09 0.12 8,408 0.50+ -- 4.51+ 3 1.02+
(0.46) 10.23 15.22 7,160 0.57 (a) 4.65 34 0.92
(0.46) 9.30 (4.24) 4,116 0.52 0.53% 4.56 41 0.89
$(0.45) $10.46 4.97% $ 9,242 0.70% -- 4.28% 22% 1.10%
(0.45) 10.40 7.77 8,061 0.70 (a) 4.38 38 1.04
(0.44) 10.08 4.33 6,840 0.70 (a) 4.35 28 1.13
(0.15) 10.09 0.06 7,439 0.70+ -- 4.31+ 3 1.22+
(0.44) 10.23 15.00 7,573 0.77 (a) 4.45 34 1.12
(0.44) 9.30 (4.41) 7,831 0.70 0.71% 4.38 41 1.07
$(0.38) $10.46 4.34% $ 3,007 1.30% -- 3.68% 22% 1.85%
(0.40) 10.40 7.24 2,924 1.20 (a) 3.88 38 1.54
(0.41) 10.08 4.02 3,050 1.00 (a) 4.05 28 1.43
(0.14) 10.09 (0.04) 3,528 1.00+ -- 4.01+ 3 1.52+
(0.41) 10.23 14.65 3,573 1.07 (a) 4.15 34 1.42
(0.41) 9.30 (4.72) 3,368 1.02 1.03% 4.06 41 1.39
$(0.39) $10.45 4.28% $ 33 1.11% -- 3.87% 22% 1.85%
(0.40) 10.40 7.29 3 1.20 (a) 3.88 38 1.54
(0.42) 10.08 4.08 2 1.00 (a) 4.05 28 1.43
(0.14) 10.09 (0.02) 2 1.00+ -- 4.01+ 3 1.52+
(0.41) 10.23 14.62 2 1.07 (a) 4.15 34 1.42
(0.03) 9.30 (0.53) 2 1.02+ 1.03%+ 4.06+ 41 1.39+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
247
<PAGE> 252
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS
VALUE NET AND UNREALIZED NET ASSET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TENNESSEE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............................ $10.22 $0.48 $ 0.08 $ 0.56 $(0.48)
Year ended 3/31/1998............................ 9.70 0.48 0.52 1.00 (0.48)
Year ended 3/31/1997............................ 9.68 0.48 0.02 0.50 (0.48)
Period ended 3/31/1996(b)....................... 9.87 0.16 (0.19) (0.03) (0.16)
Year ended 11/30/1995........................... 8.58 0.52 1.29 1.81 (0.52)
Period ended 11/30/1994*........................ 9.59 0.39 (1.01) (0.62) (0.39)
INVESTOR A SHARES
Year ended 3/31/1999(c)......................... $10.22 $0.43 $ 0.11 $ 0.54 $(0.46)
Year ended 3/31/1998............................ 9.70 0.46 0.52 0.98 (0.46)
Year ended 3/31/1997............................ 9.68 0.46 0.02 0.48 (0.46)
Period ended 3/31/1996(b)....................... 9.87 0.15 (0.19) (0.04) (0.15)
Year ended 11/30/1995........................... 8.58 0.50 1.29 1.79 (0.50)
Year ended 11/30/1994........................... 9.80 0.50 (1.22) (0.72) (0.50)
INVESTOR B SHARES
Year ended 3/31/1999............................ $10.22 $0.39 $ 0.08 $ 0.47 $(0.39)
Year ended 3/31/1998............................ 9.70 0.40 0.52 0.92 (0.40)
Year ended 3/31/1997............................ 9.68 0.40 0.02 0.42 (0.40)
Period ended 3/31/1996(b)....................... 9.87 0.14 (0.19) (0.05) (0.14)
Year ended 11/30/1995........................... 8.58 0.45 1.29 1.74 (0.45)
Year ended 11/30/1994........................... 9.80 0.45 (1.22) (0.77) (0.45)
INVESTOR C SHARES
Year ended 3/31/1999(c)......................... $10.22 $0.38 $ 0.09 $ 0.47 $(0.39)
Year ended 3/31/1998(c)......................... 9.70 0.40 0.52 0.92 (0.40)
Year ended 3/31/1997............................ 9.68 0.43 0.02 0.45 (0.43)
Period ended 3/31/1996(b)....................... 9.87 0.14 (0.19) (0.05) (0.14)
Year ended 11/30/1995........................... 8.58 0.45 1.29 1.74 (0.45)
Period ended 11/30/1994*........................ 8.62 0.03 (0.04) (0.01) (0.03)
</TABLE>
- ---------------
* Tennessee Municipal Bond Primary A and Investor C Shares commenced operations
on March 2, 1994 and November 3, 1994, 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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
248
<PAGE> 253
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE NET RATIO OF NET RATIO OF
NET ASSET NET ASSETS OPERATING ASSETS INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCLUDING INCOME PORTFOLIO EXPENSES TO
END OF TOTAL PERIOD AVERAGE INTEREST TO AVERAGE TURNOVER AVERAGE
PERIOD RETURN++ (000) NET ASSETS EXPENSES NET ASSETS RATE NET ASSETS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$10.30 5.53% $5,762 0.60% -- 4.61% 40% 1.55%
10.22 10.45 4,559 0.60 (a) 4.74 19 1.20
9.70 5.23 2,594 0.60 (a) 4.91 31 1.24
9.68 (0.30) 975 0.60+ 0.61%+ 4.92+ 2 1.47+
9.87 21.52 768 0.40 (a) 5.49 45 1.27
8.58 (6.66) 311 0.21+ (a) 5.56+ 38 1.20+
$10.30 5.32% $ 484 0.80% -- 4.41% 40% 1.80%
10.22 10.23 1,440 0.80 (a) 4.54 19 1.40
9.70 5.02 1,018 0.80 (a) 4.71 31 1.44
9.68 (0.37) 973 0.80+ 0.81%+ 4.72+ 2 1.67+
9.87 21.28 203 0.60 (a) 5.29 45 1.47
8.58 (7.58) 43 0.39 (a) 5.38 38 1.38
$10.30 4.64% $4,718 1.45% -- 3.76% 40% 2.55%
10.22 9.56 4,915 1.42 (a) 3.92 19 2.02
9.70 4.45 5,319 1.35 (a) 4.16 31 1.99
9.68 (0.55) 6,761 1.35+ 1.36%+ 4.17+ 2 2.22+
9.87 20.63 6,619 1.15 (a) 4.74 45 2.02
8.58 (8.10) 5,504 0.96 (a) 4.81 38 1.95
$10.30 4.62% $ 68 1.46% -- 3.75% 40% 2.55%
10.22 9.65 42 1.33 (a) 4.01 19 1.93
9.70 4.71 38 1.10 (a) 4.41 31 1.74
9.68 (0.49) 37 1.18+ 1.18%+ 4.34+ 2 2.05+
9.87 20.62 64 1.15 (a) 4.74 45 2.02
8.58 (0.07) 2 0.96+ (a) 4.81+ 38 1.95+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
249
<PAGE> 254
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TEXAS INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............ $10.50 $0.49 $ 0.02 $ 0.51 $(0.49) $(0.04)
Year ended 3/31/1998............ 10.18 0.49 0.32 0.81 (0.49) --
Year ended 3/31/1997............ 10.21 0.47 (0.03) 0.44 (0.47) --
Period ended 3/31/1996(b)....... 10.36 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995........... 9.53 0.46 0.83 1.29 (0.46) --
Year ended 11/30/1994........... 10.35 0.44 (0.79) (0.35) (0.44)# (0.03)
INVESTOR A SHARES
Year ended 3/31/1999............ $10.50 $0.47 $ 0.02 $ 0.49 $(0.47) $(0.04)
Year ended 3/31/1998............ 10.18 0.47 0.32 0.79 (0.47) --
Year ended 3/31/1997............ 10.21 0.45 (0.03) 0.42 (0.45) --
Period ended 3/31/1996(b)....... 10.36 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995........... 9.53 0.44 0.83 1.27 (0.44) --
Year ended 11/30/1994........... 10.35 0.42 (0.79) (0.37) (0.42)# (0.03)
INVESTOR B SHARES
Year ended 3/31/1999............ $10.50 $0.41 $ 0.02 $ 0.43 $(0.41) $(0.04)
Year ended 3/31/1998............ 10.18 0.42 0.32 0.74 (0.42) --
Year ended 3/31/1997............ 10.21 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996(b)....... 10.36 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995........... 9.53 0.41 0.83 1.24 (0.41) --
Year ended 11/30/1994........... 10.35 0.39 (0.79) (0.40) (0.39)# (0.03)
INVESTOR C SHARES
Period ended 3/31/1999(c)....... $10.50 $0.40 $ 0.02 $ 0.42 $(0.40) $(0.04)
Year ended 3/31/1998............ 10.18 0.42 0.32 0.74 (0.42) --
Year ended 3/31/1997............ 10.21 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996(b)....... 10.36 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995........... 9.53 0.41 0.83 1.24 (0.41) --
Period ended 11/30/1994**....... 9.55 0.03 (0.02) 0.01 (0.03)# --
</TABLE>
- ---------------
** Texas Intermediate Municipal Bond Investor C Shares commenced operations on
November 3, 1994.
+ 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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
250
<PAGE> 255
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES INCOME PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.53) $10.48 4.98% $391,431 0.50% 4.66% 22% 0.68%
(0.49) 10.50 8.09 385,770 0.50 4.74 19 0.75
(0.47) 10.18 4.37 24,764 0.50 4.59 34 0.84
(0.16) 10.21 0.05 27,176 0.50+ 4.52+ 11 0.89+
(0.46) 10.36 13.83 26,382 0.57(a) 4.62 64 0.83
(0.47) 9.53 (3.48) 24,066 0.55(a) 4.40 61 0.78
$(0.51) $10.48 4.77% $ 6,909 0.70% 4.46% 22% 0.93%
(0.47) 10.50 7.87 2,666 0.70 4.54 19 0.95
(0.45) 10.18 4.17 909 0.70 4.39 34 1.04
(0.15) 10.21 (0.02) 801 0.70+ 4.32+ 11 1.09+
(0.44) 10.36 13.60 806 0.77(a) 4.42 64 1.03
(0.45) 9.53 (3.66) 718 0.73(a) 4.22 61 0.96
$(0.45) $10.48 4.15% $ 2,137 1.30% 3.86% 22% 1.68%
(0.42) 10.50 7.34 2,184 1.20 4.04 19 1.45
(0.42) 10.18 3.87 2,182 1.00 4.09 34 1.34
(0.14) 10.21 (0.12) 2,845 1.00+ 4.02+ 11 1.39+
(0.41) 10.36 13.27 3,136 1.07(a) 4.12 64 1.33
(0.42) 9.53 (3.96) 2,774 1.05(a) 3.90 61 1.28
$(0.44) $10.48 4.14% $ 3 1.33% 3.83% 22% 1.68%
(0.42) 10.50 7.34 293 1.20 4.04 19 1.45
(0.42) 10.18 3.87 591 1.00 4.09 34 1.34
(0.14) 10.21 (0.12) 569 1.00+ 4.02+ 11 1.39+
(0.41) 10.36 13.27 570 1.07(a) 4.12 64 1.33
(0.03) 9.53 0.08 2 1.05+(a) 3.90+ 61 1.28+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
251
<PAGE> 256
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) IN DIVIDENDS
VALUE NET AND UNREALIZED NET ASSET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TEXAS MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............................ $10.04 $0.46 $ 0.07 $ 0.53 $(0.46)
Year ended 3/31/1998(c)......................... 9.48 0.48 0.56 1.04 (0.48)
Year ended 3/31/1997............................ 9.49 0.48 (0.01) 0.47 (0.48)
Period ended 3/31/1996(b)....................... 9.70 0.16 (0.21) (0.05) (0.16)
Year ended 11/30/1995........................... 8.39 0.50 1.31 1.81 (0.50)
Period ended 11/30/1994*........................ 10.01 0.42 (1.62) (1.20) (0.42)
INVESTOR A SHARES
Year ended 3/31/1999............................ $10.04 $0.44 $ 0.07 $ 0.51 $(0.44)
Year ended 3/31/1998(c)......................... 9.48 0.46 0.56 1.02 (0.46)
Year ended 3/31/1997............................ 9.49 0.46 (0.01) 0.45 (0.46)
Period ended 3/31/1996(b)....................... 9.70 0.15 (0.21) (0.06) (0.15)
Year ended 11/30/1995........................... 8.39 0.49 1.31 1.80 (0.49)
Period ended 11/30/1994*........................ 9.92 0.47 (1.53) (1.06) (0.47)
INVESTOR B SHARES
Year ended 3/31/1999............................ $10.04 $0.38 $ 0.07 $ 0.45 $(0.38)
Year ended 3/31/1998(c)......................... 9.48 0.39 0.56 0.95 (0.39)
Year ended 3/31/1997............................ 9.49 0.40 (0.01) 0.39 (0.40)
Period ended 3/31/1996(b)....................... 9.70 0.13 (0.21) (0.08) (0.13)
Year ended 11/30/1995........................... 8.39 0.43 1.31 1.74 (0.43)
Year ended 11/30/1994........................... 9.78 0.44 (1.39) (0.95) (0.44)
INVESTOR C SHARES
Year ended 3/31/1999............................ $10.04 $0.38 $ 0.07 $ 0.45 $(0.38)
Year ended 3/31/1998(c)......................... 9.48 0.40 0.56 0.96 (0.40)
Year ended 3/31/1997............................ 9.49 0.43 (0.01) 0.42 (0.43)
Period ended 3/31/1996(b)....................... 9.70 0.14 (0.21) (0.07) (0.14)
Year ended 11/30/1995........................... 8.39 0.43 1.31 1.74 (0.43)
Period ended 11/30/1994*........................ 8.46 0.03 (0.07) (0.04) (0.03)
</TABLE>
- ---------------
* Texas Municipal Bond Primary A, Investor A and Investor C Shares commenced
operations February 3, 1994, December 17, 1993 and November 3, 1994,
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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
252
<PAGE> 257
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
END OF TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE
PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.11 5.41% $ 9,393 0.60% 4.59% 34% 1.25%
10.04 11.12 7,615 0.60(a) 4.83 33 1.07
9.48 5.00 5,675 0.60(a) 4.99 52 1.03
9.49 (0.55) 5,138 0.60+ 4.92+ 6 1.11+
9.70 22.09 4,613 0.39(a) 5.45 50 1.05
8.39 (12.21) 2,285 0.22+(a) 5.52+ 107 1.06+
$10.11 5.20% $ 401 0.80% 4.39% 34% 1.50%
10.04 10.90 419 0.80(a) 4.63 33 1.27
9.48 4.78 371 0.80(a) 4.79 52 1.23
9.49 (0.62) 317 0.80+ 4.72+ 6 1.31+
9.70 21.85 351 0.59(a) 5.25 50 1.25
8.39 (10.98) 55 0.40+(a) 5.34+ 107 1.24+
$10.11 4.53% $ 6,828 1.45% 3.74% 34% 2.25%
10.04 10.23 8,804 1.42(a) 4.01 33 1.89
9.48 4.21 10,090 1.35(a) 4.24 52 1.78
9.49 (0.80) 11,838 1.35+ 4.17+ 6 1.86+
9.70 21.19 12,587 1.14(a) 4.70 50 1.80
8.39 (9.98) 10,812 0.97(a) 4.77 107 1.81
$10.11 4.51% $ 84 1.46% 3.73% 34% 2.25%
10.04 10.31 80 1.33(a) 4.10 33 1.80
9.48 4.47 73 1.10(a) 4.49 52 1.53
9.49 (0.74) 70 1.16+ 4.36+ 6 1.67+
9.70 21.15 70 1.14(a) 4.70 50 1.80
8.39 (0.43) 2 0.97+(a) 4.77+ 107 1.81+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
253
<PAGE> 258
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET INCREASE/
NET ASSET NET REALIZED (DECREASE) DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON VALUE FROM INVESTMENT REALIZED
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME CAPITAL GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VIRGINIA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999............ $10.92 $0.50 $ 0.06 $ 0.56 $(0.50) --
Year ended 3/31/1998............ 10.59 0.51 0.33 0.84 (0.51) --
Year ended 3/31/1997............ 10.69 0.51 (0.10) 0.41 (0.51) --
Period ended 3/31/1996(b)....... 10.83 0.17 (0.14) 0.03 (0.17) --
Year ended 11/30/1995........... 9.94 0.51 0.89 1.40 (0.51) $(0.00)#
Year ended 11/30/1994........... 10.99 0.50 (0.96) (0.46) (0.50) (0.09)
INVESTOR A SHARES
Year ended 3/31/1999(c)......... $10.92 $0.47 $ 0.07 $ 0.54 $(0.48) --
Year ended 3/31/1998............ 10.59 0.49 0.33 0.82 (0.49) --
Year ended 3/31/1997............ 10.69 0.49 (0.10) 0.39 (0.49) --
Period ended 3/31/1996(b)....... 10.83 0.16 (0.14) 0.02 (0.16) --
Year ended 11/30/1995........... 9.94 0.49 0.89 1.38 (0.49) $(0.00)#
Year ended 11/30/1994........... 10.99 0.48 (0.96) (0.48) (0.48) (0.09)
INVESTOR B SHARES
Year ended 3/31/1999............ $10.92 $0.41 $ 0.06 $ 0.47 $(0.41) --
Year ended 3/31/1998(c)......... 10.59 0.44 0.33 0.77 (0.44) --
Year ended 3/31/1997............ 10.69 0.46 (0.10) 0.36 (0.46) --
Period ended 3/31/1996(b)....... 10.83 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995........... 9.94 0.46 0.89 1.35 (0.46) $(0.00)#
Year ended 11/30/1994........... 10.99 0.45 (0.96) (0.51) (0.45) (0.09)
INVESTOR C SHARES
Year ended 3/31/1999(c)......... $10.92 $0.39 $ 0.08 $ 0.47 $(0.41) --
Year ended 3/31/1998(c)......... 10.59 0.44 0.33 0.77 (0.44) --
Year ended 3/31/1997............ 10.69 0.46 (0.10) 0.36 (0.46) --
Period ended 3/31/1996(b)....... 10.83 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995........... 9.94 0.46 0.89 1.35 (0.46) $(0.00)#
Year ended 11/30/1994........... 10.99 0.44 (0.96) (0.52) (0.44) (0.09)
</TABLE>
- ---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
254
<PAGE> 259
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES INCOME PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) NET ASSETS NET ASSETS RATE NET ASSETS
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.50) $10.98 5.21% $227,299 0.50%(a) 4.54% 5% 0.70%
(0.51) 10.92 8.12 170,969 0.50(a) 4.77 21 .74
(0.51) 10.59 3.92 148,701 0.50(a) 4.79 20 0.74
(0.17) 10.69 0.27 155,464 0.50+(a) 4.72+ 2 0.76+
(0.51) 10.83 14.39 157,252 0.56(a) 4.87 22 0.74
(0.59) 9.94 (4.35) 167,405 0.61(a) 4.76 14 0.73
$(0.48) $10.98 5.00% $ 56,733 0.70%(a) 4.34% 5% 0.95%
(0.49) 10.92 7.91 54,080 0.70(a) 4.57 21 .94
(0.49) 10.59 3.71 55,791 0.70(a) 4.59 20 0.94
(0.16) 10.69 0.20 68,003 0.70+(a) 4.52+ 2 0.96+
(0.49) 10.83 14.16 73,253 0.76(a) 4.67 22 0.94
(0.57) 9.94 (4.52) 79,412 0.79(a) 4.58 14 0.91
$(0.41) $10.98 4.38% $ 10,296 1.30%(a) 3.74% 5% 1.70%
(0.44) 10.92 7.37 9,643 1.20(a) 4.07 21 1.44
(0.46) 10.59 3.40 10,516 1.00(a) 4.29 20 1.24
(0.15) 10.69 0.10 11,926 1.00+(a) 4.22+ 2 1.26+
(0.46) 10.83 13.82 12,163 1.06(a) 4.37 22 1.24
(0.54) 9.94 (4.82) 9,690 1.11(a) 4.26 14 1.23
$(0.41) $10.98 4.36% $ 1,100 1.34%(a) 3.70% 5% 1.70%
(0.44) 10.92 7.37 1,949 1.20(a) 4.07 21 1.44
(0.46) 10.59 3.40 6,463 1.00(a) 4.29 20 1.24
(0.15) 10.69 0.10 6,909 1.00+(a) 4.22+ 2 1.26+
(0.46) 10.83 13.82 7,152 1.06(a) 4.37 22 1.24
(0.53) 9.94 (4.90) 8,372 1.19(a) 4.18 14 1.31
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
255
<PAGE> 260
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
VIRGINIA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/1999....................... $9.95 $0.47 $ 0.04 $ 0.51 $(0.47)
Year ended 3/31/1998....................... 9.40 0.47 0.55 1.02 (0.47)
Year ended 3/31/1997....................... 9.38 0.48 0.02 0.50 (0.48)
Period ended 3/31/1996(b).................. 9.62 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995...................... 8.29 0.51 1.33 1.84 (0.51)
Period ended 11/30/1994*................... 10.00 0.45 (1.71) (1.26) (0.45)
INVESTOR A SHARES
Year ended 3/31/1999(c).................... $9.95 $0.45 $ 0.04 $ 0.49 $(0.45)
Year ended 3/31/1998(c).................... 9.40 0.45 0.55 1.00 (0.45)
Year ended 3/31/1997....................... 9.38 0.46 0.02 0.48 (0.46)
Period ended 3/31/1996(b).................. 9.62 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995...................... 8.29 0.49 1.33 1.82 (0.49)
Year ended 11/30/1994...................... 9.77 0.49 (1.48) (0.99) (0.49)
INVESTOR B SHARES
Year ended 3/31/1999....................... $9.95 $0.38 $ 0.04 $ 0.42 $(0.38)
Year ended 3/31/1998(c).................... 9.40 0.39 0.55 0.94 (0.39)
Year ended 3/31/1997....................... 9.38 0.41 0.02 0.43 (0.41)
Period ended 3/31/1996(b).................. 9.62 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995...................... 8.29 0.44 1.33 1.77 (0.44)
Year ended 11/30/1994...................... 9.77 0.44 (1.48) (1.04) (0.44)
INVESTOR C SHARES
Year ended 3/31/1999....................... $9.95 $0.37 $ 0.04 $ 0.41 $(0.37)
Year ended 3/31/1998(c).................... 9.40 0.40 0.55 0.95 (0.40)
Year ended 3/31/1997....................... 9.38 0.43 0.02 0.45 (0.43)
Period ended 3/31/1996(b).................. 9.62 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995...................... 8.29 0.44 1.33 1.77 (0.44)
Period ended 11/30/1994*................... 8.38 0.03 (0.09) (0.06) (0.03)
</TABLE>
- -------------------------
* Virginia Municipal Bond Primary A and Investor C Shares commenced operations
on January 11, 1994 and November 3, 1994, 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) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
256
<PAGE> 261
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND / OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO -----------------
RATIO OF AVERAGE NET RATIO OF NET RATIO OF
NET ASSET NET ASSETS OPERATING ASSETS INVESTMENT OPERATING
VALUE END OF EXPENSES INCLUDING INCOME PORTFOLIO EXPENSES TO
END OF TOTAL PERIOD TO AVERAGE INTEREST TO AVERAGE TURNOVER AVERAGE
PERIOD RETURN ++ (000) NET ASSETS EXPENSES NET ASSETS RATE NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$9.99 5.18% $12,992 0.60% (a) 4.66% 11% 1.11%
9.95 11.11 11,026 0.59 (a) 4.86 9 0.96
9.40 5.44 5,726 0.60 (a) 5.10 37 0.98
9.38 (0.84) 3,296+ 0.60+ 0.61%+ 5.06+ 8 1.07+
9.62 22.63 3,527 0.39 (a) 5.51 16 1.04
8.29 (12.86) 432 0.21+ (a) 5.52+ 61 0.99+
$9.99 4.98% $ 965 0.80% (a) 4.46% 11% 1.36%
9.95 10.88 1,222 0.79 (a) 4.66 9 1.16
9.40 5.23 726 0.80 (a) 4.90 37 1.18
9.38 (0.91) 661 0.80+ 0.81%+ 4.86+ 8 1.27+
9.62 22.39 650 0.59 (a) 5.31 16 1.24
8.29 (10.44) 168 0.39 (a) 5.34 61 1.17
$9.99 4.30% $13,499 1.45% (a) 3.81% 11% 2.11%
9.95 10.21 13,082 1.41 (a) 4.04 9 1.78
9.40 4.65 13,972 1.35 (a) 4.35 37 1.73
9.38 (1.09) 15,938 1.35+ 1.36%+ 4.31+ 8 1.82+
9.62 21.72 16,489 1.14 (a) 4.76 16 1.79
8.29 (10.95) 12,738 0.96 (a) 4.77 61 1.74
$9.99 4.21% $ 3 1.45% (a) 3.81% 11% 2.11%
9.95 10.31 3 1.32 (a) 4.13 9 1.69
9.40 4.92 45 1.10 (a) 4.60 37 1.48
9.38 (1.03) 43 1.16+ 1.17%+ 4.50+ 8 1.63+
9.62 21.71 34 1.14 (a) 4.76 16 1.79
8.29 (0.67) 2 0.96+ (a) 4.77+ 61 1.74+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
257
<PAGE> 262
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS
Nations Fund Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end investment company. At
March 31, 1999, the Trust offered thirty-eight separate portfolios. These
financial statements pertain only to the municipal bond portfolios of the Trust
(each a "Fund" and collectively, the "Funds"). Financial statements for the
other portfolios of the Trust are presented under separate cover. The Funds
currently offer four classes of shares: Primary A Shares, Investor A Shares,
Investor B Shares and Investor C 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 its 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 by an independent pricing service
approved by the Board of Trustees. Valuations are based upon a matrix system
and/or appraisals provided by the pricing service which takes into consideration
such factors as yields, prices, maturities, redemption features and credit
ratings on comparable securities. Certain securities may be valued by one or
more principal market makers. Restricted securities, securities for which market
quotations are not readily available, and other assets are valued by the
investment advisor under the supervision of the Board of Trustees. Short-term
investments that mature in 60 days or less are valued at amortized cost.
Certain state's municipal obligations may be obligations of issuers that rely in
whole or in part on state specific revenues, real property taxes and revenues
from health care institutions, as appropriate, or obligations secured by
mortgages on real property. Consequently, state law affecting these obligations
and the possible effects on these obligations of economic conditions in such
states must be considered.
Securities Transactions and Investment Income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on
ex-dividend date. Each Fund's investment income and realized and unrealized
gains and losses are allocated among its classes based upon the relative net
assets of each class of shares.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after 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 capital gains (including net
short-term capital gains), at least annually after the fiscal year in which the
capital gains were earned, unless offset by any available capital loss
carryforward. Income distributions and capital gain distributions on a Fund
level are determined in accordance with Federal income tax regulations which may
differ from generally accepted accounting principles.
Certain reclassifications are made to each Fund's capital accounts to reflect
income and gains available for distribution (or available capital loss
carryforwards) under Federal income tax regulations. These reclassifications are
due to different book and tax accounting for market discount and organization
costs.
258
<PAGE> 263
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Reclassifications for the year ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
INCREASE/
(DECREASE) INCREASE/
INCREASE/ UNDISTRIBUTED (DECREASE)
(DECREASE) NET ACCUMULATED
PAID-IN INVESTMENT NET REALIZED
CAPITAL INCOME GAIN/(LOSS)
(000) (000) (000)
-----------------------------------------
<S> <C> <C> <C>
Short-Term Municipal Income.... $-- $ -- $ --
Intermediate Municipal Bond.... -- 199 (199)
Municipal Income............... -- 86 (86)
Florida Intermediate Municipal
Bond.......................... --* --* --
Florida Municipal Bond......... -- 81 (81)
Georgia Intermediate Municipal
Bond.......................... -- -- --
Georgia Municipal Bond......... -- --* --*
Maryland Intermediate Municipal
Bond.......................... -- 2 (2)
Maryland Municipal Bond........ -- -- --
North Carolina Intermediate
Municipal Bond................ -- -- --
North Carolina Municipal Bond.. -- -- --
South Carolina Intermediate
Municipal Bond................ -- 2 (2)
South Carolina Municipal Bond.. -- 4 (4)
Tennessee Intermediate
Municipal Bond................ -- -- --
Tennessee Municipal Bond....... -- 8 (8)
Texas Intermediate Municipal
Bond.......................... -- 44 (44)
Texas Municipal Bond........... 2 (2)
Virginia Intermediate Municipal
Bond.......................... -- -- --
Virginia Municipal Bond........ -- -- --
</TABLE>
- ---------------
* Amount represents less than $500.
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 shareholders. Therefore, no provision is made for Federal income or
excise taxes.
Expenses: General expenses of the Trust are allocated to the Funds based upon
their relative net assets or other expense allocation methodologies determined
by the nature of the expense. Expenses directly attributable to a Fund or class
of shares are charged to such Fund or class. Expenses not directly attributable
to any class of shares are prorated based on the relative net assets of each
class. The Funds bear all costs in connection with their organization, including
the fees and expenses of registering and qualifying their shares for
distribution under Federal and state securities regulations. All such costs are
being amortized on a straight-line basis over a period of five years from
commencement of operations.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
The Trust has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with NationsBanc Advisors, Inc. ("NBAI"), a wholly-owned
subsidiary of NationsBank, N.A. ("NationsBank"), which in turn is an indirect
wholly-owned banking subsidiary of Bank of America Corporation, a bank holding
company organized as a Delaware corporation, pursuant to which NBAI provides
investment advisory services to the Funds. Under the Investment Advisory
Agreement, NBAI is entitled to receive an advisory fee, calculated daily and
payable monthly, based on the following annual rates multiplied by the average
daily net assets of each Fund:
<TABLE>
<CAPTION>
ANNUAL
RATE
------
<S> <C>
Short-Term Municipal Income, Intermediate Municipal Bond
and eight single-state Intermediate Municipal Bond
Funds................................................... 0.50%
Municipal Income and eight single-state Municipal Bond
Funds................................................... 0.60%
</TABLE>
The Trust has entered into a sub-advisory agreement with NBAI and TradeStreet
Investment Associates, Inc. ("TradeStreet"), a wholly-owned subsidiary of
NationsBank, pursuant to which TradeStreet is entitled to receive a fee from
NBAI at the annual rate of 0.07% of each Fund's average daily net assets.
Stephens Inc. ("Stephens") serves as the co-administrator of the Trust. On
January 26 or February 2, 1999, NBAI began serving as co-administrator of the
Funds with Stephens. Under the new arrangement, Stephens and NBAI are entitled
to receive a combined fee, computed daily and paid monthly at the annual rate of
0.12% of the average daily net assets of the Funds, in addition to certain out
of pocket expenses. Prior to those dates, First Data Investor Services Group,
Inc. ("First Data"), a wholly-owned subsidiary of First Data Corporation, served
as co-administrator. Stephens and First Data were entitled to receive a combined
fee, computed daily and paid monthly, at the annual rate of 0.10% of each Fund's
average daily net assets. Effective January 26 and February 2, 1999, The Bank of
New York ("BNY") began serving as the sub-
259
<PAGE> 264
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
administrator of the Trust pursuant to an agreement with NBAI, and NBAI ceased
to serve as sub-administrator. For the year ended March 31, 1999, Stephens
earned $1,606,203 from the Funds for its administration services, of which
$373,652 was paid to NBAI for its services.
The investment advisor, sub-advisor and distributor may, from time to time,
voluntarily reduce their fees payable by each Fund. For the year ended March 31,
1999, the investment advisor agreed to voluntarily reimburse expenses and/or
waive its advisory fee to the extent that total expenses (excluding shareholder
servicing and distribution fees), as a percentage of the respective Fund's
average daily net assets, exceeded the following: 0.40% for the Short-Term
Municipal Income Fund, 0.50% for the Intermediate Municipal Bond Fund and eight
single-state Intermediate Municipal Bond Funds, and 0.60% for the Municipal
Income Fund and eight single-state Municipal Bond Funds.
Effective October 19, 1998, BNY began serving as the custodian of the Trust's
assets. Previously, NationsBank of Texas, N.A. ("NationsBank of Texas") served
as custodian until May 6, 1998, when it was merged with NationsBank. BNY acted
as sub-custodian to the Funds until that date. For the year ended March 31,
1999, NationsBank of Texas and NationsBank earned $67,081 for providing such
services.
First Data serves as the transfer agent for the Funds' shares. NationsBank of
Texas also served as the sub-transfer agent for the Primary A Shares of the
Funds until it merged with NationsBank on May 6, 1998. NationsBank began serving
as the sub-transfer agent for the Primary A Shares of the Funds on that date and
is providing the same services as were previously provided by NationsBank of
Texas. For the year ended March 31, 1999, NationsBank of Texas and/or
NationsBank earned approximately $88,312 for providing such services.
Stephens serves as distributor of the Funds' shares. For the year ended March
31, 1999, the Funds were informed that the distributor received $6,046,549 in
front end sales charges for sales of Investor A Shares and $383,126 in
contingent deferred sales charges from shares which were subject to such
charges. A substantial portion of these fees is paid to affiliates of
NationsBank.
The Trust pays each unaffiliated Trustee an annual fee of $1,000 ($3,000 for the
Chairman of the Board), plus $500 per Fund and an additional $1,000 for each
in-person board meeting, and $500 for each telephonic board meeting attended.
The Trust also reimburses expenses incurred by each unaffiliated Trustee in
attending such meetings.
The Trust's eligible Trustees may participate in non-qualified deferred
compensation and retirement plans which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Funds' assets. Income earned on each
plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of Nations Treasury Fund, a portfolio of Nations Fund,
Inc. The expense for the deferred compensation and retirement plans is included
in "Trustees' 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 NationsBank and its affiliates have either sole or
joint investment discretion.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
The Trust has adopted shareholder servicing plans and distribution plans for the
Investor A, Investor B and Investor C Shares of each 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
distributor and/or selling agents) for activities or expenses primarily intended
to result in the sale of the classes' shares. Payments under the Investor A
shareholder servicing and distribution plan are limited to 0.25% of Investor A
average daily net assets. Payments under the shareholder servicing plan and
distribution plan, respectively, for both Investor B and Investor C shares are
limited to 0.25% and 0.75% of each respective class's average daily net assets.
Payments are made at an annual rate, as a percentage of average daily net
assets, set from time to time by the Board of Trustees, and are charged as
expenses of each Fund directly to the applicable class.
260
<PAGE> 265
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
A substantial portion of the expenses incurred pursuant to these plans is paid
to affiliates of NationsBank and NBAI.
At March 31, 1999, the rates in effect and plan limits, as a percentage of
average daily net assets, were as follows:
<TABLE>
<CAPTION>
CURRENT PLAN
RATE LIMIT
-------------------
<S> <C> <C>
Investor A Distribution Plan................ 0.20%* 0.25%
Investor B and Investor C Shareholder
Servicing Plans............................ 0.25% 0.25%
Investor B Distribution Plan:
Short-Term Municipal Income................ 0.10% 0.75%
Intermediate Municipal Bond and the eight
single-state Intermediate Municipal Bond
Funds.................................... 0.55% 0.75%
Municipal Income and the eight single-state
Municipal Bond Funds..................... 0.60% 0.75%
Investor C Distribution Plan:
Short-Term Municipal Income................ 0.75%** 0.75%
Intermediate Municipal Bond and the eight
single-state Intermediate Municipal Bond
Funds.................................... 0.75%*** 0.75%
Municipal Income and the eight single-state
Municipal Bond Funds..................... 0.75%**** 0.75%
</TABLE>
- ---------------
* In addition, a separate shareholder servicing plan has been adopted for the
Investor A Shares of Short-Term Municipal Income. No expenses were incurred
by the Fund pursuant to this plan during the year ended March 31, 1999.
** Reflects a rate change effective January 19, 1999 from .10%.
*** Reflects a rate change effective January 19, 1999 from .55%.
**** Reflects a rate change effective January 19, 1999 from .60%.
4. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government and short-term investments, for the year ended March
31, 1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
--------------------
<S> <C> <C>
Short-Term Municipal Income................. $ 77,474 $ 60,604
Intermediate Municipal Bond................. 420,000 355,433
Municipal Income............................ 227,367 69,109
Florida Intermediate Municipal Bond......... 64,998 31,866
Florida Municipal Bond...................... 122,482 22,877
Georgia Intermediate Municipal Bond......... 34,828 20,677
Georgia Municipal Bond...................... 7,946 3,569
Maryland Intermediate Municipal Bond........ 136,791 38,635
Maryland Municipal Bond..................... 20,001 6,355
North Carolina Intermediate Municipal
Bond....................................... 45,454 30,614
North Carolina Municipal Bond............... 13,352 4,055
South Carolina Intermediate Municipal
Bond....................................... 23,588 31,564
South Carolina Municipal Bond............... 4,113 634
Tennessee Intermediate Municipal Bond....... 15,249 11,262
Tennessee Municipal Bond.................... 4,204 4,718
Texas Intermediate Municipal Bond........... 90,733 86,001
Texas Municipal Bond........................ 5,703 6,271
Virginia Intermediate Municipal Bond........ 67,181 11,823
Virginia Municipal Bond..................... 4,003 2,971
</TABLE>
There were no purchases and sales of long-term U.S. government securities for
the year ended March 31, 1999.
5. SHARES OF BENEFICIAL INTEREST
As of March 31, 1999, an unlimited number of shares of beneficial interest
without par value were authorized for the Trust. The Trust's Declaration of
Trust authorizes the Board of Trustees to classify or reclassify any authorized,
but unissued shares into one or more additional classes or series of shares. See
Schedule of Capital Stock Activity.
6. LINE OF CREDIT
The Trust participates in an uncommitted line of credit provided by BNY under a
line of credit agreement (the "Agreement"). Advances under the Agreement are
taken primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Interest on borrowings is payable at the Federal Funds Rate plus
0.50% on an annualized basis. Each participating Fund maintains a ratio of no
less than 4 to 1 of net assets (not including funds borrowed pursuant to the
Agreement) to the aggregate amount of indebtedness pursuant to the Agreement.
At March 31, 1999, there were no loans outstanding under this Agreement. For the
year ended March 31, 1999, borrowings by the Funds under the Agreement were as
follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
- --------------------------------------------------------------------
<S> <C> <C>
Short-Term Municipal Income................. $92 5.70%
Intermediate Municipal Bond................. 2 5.59
Municipal Income............................ 27 5.79
Florida Intermediate Municipal Bond......... 3 5.66
Florida Municipal Bond...................... 6 5.65
Georgia Intermediate Municipal Bond......... 22 5.67
Georgia Municipal Bond...................... 1 6.04
Maryland Intermediate Municipal Bond........ 3 5.69
Maryland Municipal Bond..................... 1 5.90
North Carolina Intermediate Municipal
Bond....................................... 52 5.71
South Carolina Intermediate Municipal
Bond....................................... 50 5.73
Tennessee Municipal Bond.................... 5 6.01
Texas Intermediate Municipal Bond........... 21 5.87
Texas Municipal Bond........................ 3 6.04
Virginia Intermediate Municipal Bond........ 28 5.28
Virginia Municipal Bond..................... 7 4.90
</TABLE>
The average amount outstanding was calculated based on daily balances in the
period.
261
<PAGE> 266
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. CAPITAL LOSS CARRYFORWARD
At March 31, 1999, the following Funds had available for Federal income tax
purposes the following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2002 2003 2004 2005 2006
FUND (000) (000) (000) (000) (000)
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Short-Term Municipal Income..... -- $144 -- -- --
Florida Intermediate Municipal
Bond........................... -- 498 -- $ 22 --
Florida Municipal Bond.......... -- 77 -- 133 $72
Georgia Municipal Bond.......... -- 189 -- -- --
North Carolina Municipal Bond... $235 425 -- 207 --
South Carolina Municipal Bond... -- -- -- -- 15
Tennessee Municipal Bond........ -- 25 -- -- --
Texas Municipal Bond............ 92 132 -- -- --
Virginia Municipal Bond......... 326 77 $12 63 --
</TABLE>
8. REORGANIZATIONS
CONVERSION OF COMMON TRUST FUNDS
On August 8 and August 22, 1997, certain Funds, as listed below (each an
"Acquiring Fund"), acquired the assets of certain common trust funds, managed by
NationsBank, also listed below (each an "Acquired Fund"), in a tax-free exchange
for shares of the Acquiring Fund. The number and value of shares issued by the
Acquiring Fund are presented in the Schedule of Capital Stock Activity. Net
assets and unrealized appreciation as of the conversion date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS OF
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND
ACQUIRING ACQUIRED ACQUIRED FUND ACQUIRING FUND AFTER CONVERSION
FUND FUND (000) (000) (000)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Intermediate NationsBank Common Trust Intermediate
Municipal Bond Municipal Bond Fund $502,040 $ 350,319 $ 852,359
Municipal Income NationsBank Common Trust Municipal
Bond Fund 159,212 327,035 486,247
Florida NationsBank Common Trust Florida
Intermediate Municipal Bond Fund
Municipal Bond 136,392 69,328 205,720
Georgia NationsBank Common Trust Tax-Free
Intermediate Income Fund for Personal Trusts
Municipal Bond 26,050 66,471 92,521
Georgia NationsBank Common Trust Georgia
Intermediate Municipal Bond Fund
Municipal Bond 52,613 92,521 145,134
North Carolina NationsBank Common Trust North
Intermediate Carolina Municipal Bond Fund
Municipal Bond 141,745 42,541 184,286
South Carolina NationsBank Common Trust Old Colony
Intermediate South Carolina Tax-Exempt Bond Fund
Municipal Bond 68,636 70,529 139,165
South Carolina NationsBank Common Trust South
Intermediate Carolina Municipal Bond Fund
Municipal Bond 137,649 139,165 276,814
Tennessee NationsBank Common Trust Tennessee
Intermediate Municipal Bond Fund
Municipal Bond 25,429 20,695 46,124
Texas Intermediate NationsBank Common Trust Texas
Municipal Bond Municipal Bond Fund 357,784 30,219 388,003
<CAPTION>
ACQUIRED
FUND
UNREALIZED
ACQUIRING APPRECIATION
FUND (000)
- ------------------ ------------
<S> <C>
Intermediate
Municipal Bond $23,696
Municipal Income
9,643
Florida
Intermediate
Municipal Bond 7,073
Georgia
Intermediate
Municipal Bond 814
Georgia
Intermediate
Municipal Bond 2,973
North Carolina
Intermediate
Municipal Bond 6,802
South Carolina
Intermediate
Municipal Bond 5,053
South Carolina
Intermediate
Municipal Bond 6,747
Tennessee
Intermediate
Municipal Bond 1,049
Texas Intermediate
Municipal Bond 15,315
</TABLE>
262
<PAGE> 267
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
On June 19, 1998, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets of certain common trust funds, managed by NationsBank, also
listed below (each an "Acquired Fund"), in a tax-free exchange for shares of the
Acquiring Fund. The number and value of shares issued by the Acquiring Fund are
presented in the Schedule of Capital Stock Activity. Net assets and unrealized
appreciation as of the conversion date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS OF
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND
ACQUIRING ACQUIRED ACQUIRED FUND ACQUIRING FUND AFTER CONVERSION
FUND FUND (000) (000) (000)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Income NationsBank Common Trust Municipal
Bond Fund $135,044 $516,163 $651,207
Maryland NationsBank Common Trust
Intermediate Intermediate Municipal Bond Fund
Municipal Bond 93,840 107,066 200,906
<CAPTION>
ACQUIRED
FUND
UNREALIZED
ACQUIRING APPRECIATION
FUND (000)
- ------------------ ------------
<S> <C>
Municipal Income
$10,717
Maryland
Intermediate
Municipal Bond 4,791
</TABLE>
On June 19, 1998, the Virginia Intermediate Municipal Bond Fund (the "Acquiring
Fund"), acquired the assets of the NationsBank Common Trust Virginia Municipal
Bond Fund (the "Acquired Fund"), managed by NationsBank, in a taxable exchange
for shares of the Acquiring Fund. The number and value of shares issued by the
Acquiring Fund are presented in the Schedule of Capital Stock Activity. Net
assets as of the conversion date of the Acquired Fund and the Acquiring Fund
prior to conversion, and the Acquiring Fund immediately after the conversion,
were $4,781,000, $247,135,000 and $251,916,000, respectively.
ACQUISITION OF THE PILOT FUNDS
On May 16, 1997, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets and certain liabilities of The Pilot Funds, also listed
below (each an "Acquired Fund"), in a tax-free reorganization in exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
the Acquired Fund's shareholders. The number and value of shares issued by the
Acquiring Fund are presented in the Schedule of Capital Stock Activity. Net
assets and unrealized appreciation as of the reorganization date were as
follows:
<TABLE>
<CAPTION>
ACQUIRED
TOTAL NET ASSETS OF FUND
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND UNREALIZED
ACQUIRING ACQUIRED ACQUIRED FUND ACQUIRING FUND AFTER ACQUISITION APPRECIATION
FUND FUND (000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Intermediate Pilot Intermediate
Municipal Bond Municipal Bond Fund $218,884 $119,775 $338,659 $5,841
Municipal Income Pilot Municipal Bond
Fund 201,344 109,547 310,891 9,979
</TABLE>
ACQUISITION OF THE EMERALD FUNDS
On May 15, 1998, Florida Municipal Bond Fund (the "Acquiring Fund"), acquired
the assets and certain liabilities of Emerald Florida Tax-Exempt Fund (the
"Acquired Fund"), listed below, in a tax-free reorganization in exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
the Acquired Fund's shareholders. The number and value of shares issued by the
Acquiring Fund are presented in the Schedule of Capital Stock Activity. Net
assets and unrealized appreciation as of the reorganization date were as
follows:
<TABLE>
<CAPTION>
ACQUIRED
TOTAL NET ASSETS OF FUND
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND UNREALIZED
ACQUIRING ACQUIRED ACQUIRED FUND ACQUIRING FUND AFTER ACQUISITION APPRECIATION
FUND FUND (000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Florida Municipal Emerald Florida
Bond Tax-Exempt Fund $118,966 $47,709 $166,675 $8,880
</TABLE>
263
<PAGE> 268
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
9. SUBSEQUENT EVENTS
The Trust was party to an Agreement and Plan of Reorganization with the Pacific
Horizon Funds, Inc. (a family of mutual funds advised by Bank of America NT&SA,
an indirect wholly-owned subsidiary of Bank of America Corporation) pursuant to
which the assets and liabilities (net) of the Pacific Horizon National Municipal
Bond Fund of $19,122,605 were acquired in a tax-free reorganization in exchange
for shares of the Nations Municipal Income Fund on May 14, 1999.
Effective May 14, 1999, the maximum contractual levels of advisory and combined
co-administration fees payable by the Funds changed. At that time, the maximum
contractual advisory fee that NBAI is entitled to receive from the Funds
decreased by .10% of the Funds' average daily net assets (except for Short-Term
Municipal Income which decreased by .20%), and the combined co-administration
fee payable to NBAI and Stephens increased by the same amount.
264
<PAGE> 269
NATIONS FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUND TRUST
In our opinion, the accompanying statements of net assets (except for bond
ratings), and the related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material respects, the
financial position of each of the nineteen municipal bond portfolios that
constitute part of Nations Fund Trust (the "Trust") at March 31, 1999, and the
results of each of their operations, the changes in each of their net assets and
the financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 28, 1999
265
<PAGE> 270
NATIONS FUNDS
TAX INFORMATION (UNAUDITED)
For the year ended March 31, 1999, all of the distributions made from net
investment income of the Nations Municipal Bond Funds are tax exempt for Federal
income tax purposes. A portion of the income may be subject to Federal
Alternative Minimum Tax. For the year ended March 31, 1999, the amount of
long-term capital gain designated by the Trust is as follows:
<TABLE>
<CAPTION>
LONG TERM
CAPITAL GAIN
DISTRIBUTION
FUND DESIGNATION
- --------------------------------------------------------------------------
<S> <C>
Intermediate Municipal Bond
$4,098,105
Municipal Income
1,834,911
Georgia Intermediate Municipal Bond
607,064
Maryland Municipal Bond
3,189
North Carolina Intermediate Municipal Bond
516,763
South Carolina Intermediate Municipal Bond
922,544
Texas Intermediate Municipal Bond
1,604,296
</TABLE>
266
<PAGE> 271
[GRAPHIC DEPICTING BASKETS]
<PAGE> 272
BULK RATE
[NATIONS FUNDS LOGO] U.S. POSTAGE
PAID
P.O. Box 32602 N READING, MA
Charlotte, NC 28234-4602 PERMIT NO.
Toll Free 1-800-982-2271 105
AR4 IN96119 3/99
