<PAGE> 1
[GRAPHIC: PHOTO COLLAGE - COMPUTER Nations Convertible
CHIP/OYSTER SHELL] Securities Fund
Nations Balanced
Assets Fund
Nations Asset
Allocation Fund
Nations Equity
Income Fund
Nations Value Fund
Nations Marsico
Growth & Income Fund
Nations
Blue Chip Fund
Nations Strategic
Growth Fund
Nations Capital
Growth Fund
Nations Aggressive
Growth Fund
Nations Marsico
Focused Equities Fund
Nations MidCap
Growth Fund
Nations Marsico
21st Century Fund
Nations Small
Company Fund
DOMESTIC
STOCK FUNDS
SEMIANNUAL REPORT FOR THE PERIOD
ENDED SEPTEMBER 30, 2000
[NATIONS FUNDS LOGO]
<PAGE> 2
This Report is submitted for the general information of shareholders of Nations
Funds. This material must be preceded or accompanied by a current Nations Funds
prospectus.
Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of
America N.A., is not a bank, and securities offered by it are not guaranteed by
any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC.
Nations Funds Investment adviser: Banc of America Advisors, Inc.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 3
PRESIDENTS' MESSAGE
Dear Shareholder:
The six-month period ended September 30, 2000 proved
to be quite unsettling for mutual fund investors.
Several factors led to turbulence in U.S. and
overseas markets. The Federal Reserve Board's
practice of increasing interest rates in an attempt
to slow down the economy and keep inflation at bay
took a toll on the stock market. Oil prices soared
over the summer causing concern across the country as
several cities saw gas prices above $2.00 per gallon.
The slowing economy affected earnings at a number of
leading U.S. companies, causing additional volatility
in the stock market. Overseas, the European Central
Bank raised interest rates in August -- the fifth
rate hike this year -- and the euro fell to a record
low. In Japan, the Bank of Japan increased interest
rates for the first time in a decade, adding
additional strain to an economy that has struggled
over the last several years.
The only seemingly bright spot for investors during
the past six months has been in the bond market.
Because of the federal government's budget surplus,
the U.S. Treasury has had to buy back many of its
long-term securities. The shortage in long-term
securities has generally increased returns on these
securities, resulting in an inversion of the yield
curve -- whereby short-term securities are yielding
more than many longer-term securities. This is the
first time in a long time that most bond sectors have
outperformed both the Standard & Poor's 500 Composite
Stock Price Index and the Nasdaq Composite Index*.
Now, you're probably asking yourself "Is this a good
time to invest in stocks or bonds?" We think the
answer is "Yes." While stocks of all sizes have
historically outperformed bonds over the long-term,
and bonds have performed well this year, a broadly
diversified portfolio -- one consisting of both
stocks and bonds -- can help you weather market
volatility. Remember that the financial markets tend
to be cyclical and while one asset class or
investment style may be the flavor of the month, it
could be out of favor the next.
It's also important to note that volatility tends to
keep some investors on the sidelines. But waiting for
the right time to invest may result in missed
opportunities. Disciplined investing requires staying
invested through market highs and lows. Investors can
also take advantage of dollar cost averaging** during
volatile times -- the practice of systematic
investing where you seek to buy more shares when
prices are low and fewer shares when prices are high,
resulting in a lower average share price over time.
Remaining invested and regularly investing is key.
Whether it's growth vs. value, large cap vs. small
cap, stocks vs. bonds, or U.S. vs. international, no
single investment style alone will assure that you
achieve your long-term financial goals. We believe
diversification is the key to long-term success and
an investment professional can help you create a
portfolio best suited to your risk tolerance and
investment time horizon.
*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
Nasdaq Composite Index tracks the performance of
domestic common stocks traded on the regular Nasdaq
market as National Market System traded foreign
stocks and ADRs. It is unmanaged and unavailable for
investment.
**Dollar cost averaging does not ensure a profit or
protect against a loss in a declining market. You
should carefully consider your ability to make
regular investments through periods of fluctuating
market conditions.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
PRESIDENTS' MESSAGE CONTINUED...
At Nations Funds, we strongly believe in the value of
advice. An investment professional can provide you
with market research and analysis, years of
investment experience, and work with you to determine
the best strategy for surviving short-term volatility
and successfully reaching your long-term goals.
We remain committed to providing you with world-class
investment management and competitive products to
help you reach your long-term goals. Should you have
any questions or comments on your semiannual report,
please contact your investment professional or call
us at 1.800.321.7854. You can also visit us online at
www.nations-funds.com.
Thank you for being a part of the Nations Funds
family.
Sincerely,
/s/ A. Max Walker
A. MAX WALKER
PRESIDENT AND CHAIRMAN OF THE BOARD
NATIONS FUNDS
/s/ Robert H. Gordon
ROBERT H. GORDON
PRESIDENT
BANC OF AMERICA ADVISORS, INC.
September 30, 2000
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<S> <C>
NATIONS FUNDS SPECTRUM 2
FINANCIAL STATEMENTS
Statements of net assets
Nations Convertible Securities Fund 3
Nations Balanced Assets Fund 7
Nations Asset Allocation Fund 11
Nations Equity Income Fund 21
Nations Value Fund 23
Nations Marsico Growth & Income Fund 25
Nations Blue Chip Fund 26
Nations Strategic Growth Fund 27
Nations Capital Growth Fund 29
Nations Aggressive Growth Fund 31
Nations Marsico Focused Equities Fund 33
Nations MidCap Growth Fund 34
Nations Marsico 21st Century Fund 36
Nations Small Company Fund 38
Statements of operations 42
Statements of changes in net assets 46
Schedules of capital stock activity 52
Financial highlights 66
Notes to financial statements 94
Statements of net assets -- Nations Master Investment Trust
Nations Marsico Growth & Income Master Portfolio 103
Nations Blue Chip Master Portfolio 105
Nations Marsico Focused Equities Master Portfolio 108
Statements of operations 109
Statements of changes in net assets 110
Supplementary data 112
Notes to financial statements 113
</TABLE>
<TABLE>
<S> <C>
------------------------------------------------------------------------------
NATIONS FUNDS [DALBAR MUTUAL FUND
RECOGNIZED FOR SERVICE AWARD AND HONORS
OUTSTANDING COMMITMENT TO: FINANCIAL
CUSTOMER SERVICE INTERMEDIARIES 1999 GRAPHIC]
IN RECOGNITION OF ITS COMMITMENT TO DALBAR, Inc., is a well-respected
PROVIDE SHAREHOLDERS WITH THE research firm that measures
HIGHEST LEVEL OF CUSTOMER SERVICE customer service levels and
IN THE MUTUAL FUND INDUSTRY, establishes benchmarks in the
NATIONS FUNDS RECEIVED THE DALBAR financial services industry.
MUTUAL FUND SERVICE AWARD IN 1999.
------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
THE NATIONS FUNDS FAMILY OF FUNDS
LOWER RISK/REWARD POTENTIAL
MONEY MARKET FUNDS
Nations Prime Fund
Nations Cash Reserves
Nations Money Market Reserves
Nations Government Money Market Fund
Nations Government Reserves
Nations Treasury Fund
Nations Treasury Reserves
Nations Tax Exempt Fund
Nations Municipal Reserves
Nations California Tax-Exempt Reserves
FIXED INCOME FUNDS
INCOME FUNDS
Nations High Yield Bond Fund
Nations Strategic Income Fund
Nations U.S. Government Bond Fund
Nations Government Securities Fund
Nations Bond Fund
Nations Intermediate Bond Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund
TAX-EXEMPT INCOME FUNDS
Nations Municipal Income Fund
Nations State-Specific Long-Term Municipal
Bond Funds (CA, FL, GA, KS,
MD, NC, SC, TN, TX, VA)
Nations Intermediate Municipal Bond Fund
Nations State-Specific Intermediate Municipal
Bond Funds (FL, GA, MD,
NC, SC, TN, TX, VA)
Nations Short-Term Municipal Income Fund
DOMESTIC EQUITY FUNDS
GROWTH FUNDS
Nations Small Company Fund
Nations Marsico 21st Century Fund
Nations MidCap Growth Fund
Nations Marsico Focused Equities Fund
Nations Aggressive Growth Fund
Nations Capital Growth Fund
Nations Strategic Growth Fund
Nations Blue Chip Fund
GROWTH AND INCOME FUNDS
Nations Marsico Growth & Income Fund
Nations Value Fund
Nations Equity Income Fund
Nations Asset Allocation Fund
Nations Balanced Assets Fund
Nations Convertible Securities Fund
INTERNATIONAL FUNDS
Nations Emerging Markets Fund
Nations Marsico International Opportunities Fund
Nations International Equity Fund
Nations International Value Fund
HIGHER RISK/REWARD POTENTIAL
INDEX FUNDS
Nations Managed Index Fund
Nations LargeCap Index Fund
Nations MidCap Index Fund
Nations SmallCap Index Fund
ASSET ALLOCATION PORTFOLIOS
Nations LifeGoal Balanced Growth Portfolio
Nations LifeGoal Growth Portfolio
Nations LifeGoal Income and Growth Portfolio
2
<PAGE> 7
NATIONS FUNDS
Nations Convertible Securities Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 11.9%
COMMERCIAL BANKING -- 1.7%
50,000 Bank United Corporation, Class A....... $ 2,534
100,000 Washington Mutual, Inc. ............... 3,981
--------
6,515
--------
COMPUTERS AND OFFICE EQUIPMENT -- 0.3%
50,000 Hutchinson Technology, Inc.(!)......... 1,053
--------
ELECTRIC POWER -- NON NUCLEAR -- 0.5%
80,000 Nisource Inc. ......................... 1,950
--------
ENERGY -- MISCELLANEOUS -- 0.7%
130,000 Avista Corporation..................... 2,925
--------
HEALTH SERVICES -- 1.0%
200,000 Health Management Associates, Inc.,
Class A(!)........................... 4,162
--------
INSURANCE -- 1.0%
36,700 Lincoln National Corporation Ltd. ..... 1,766
130,000 Penn Treaty American Corporation(!).... 2,365
--------
4,131
--------
INTEGRATED OIL -- 0.9%
47,500 BP Amoco plc, ADR...................... 2,518
33,300 Unocal Corporation..................... 1,180
--------
3,698
--------
MEDICAL DEVICES AND SUPPLIES -- 0.7%
50,000 Abbott Laboratories.................... 2,379
7,500 Invitrogen Corporation(!).............. 533
--------
2,912
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 0.3%
25,000 Cisco Systems, Inc. ................... 1,381
--------
OILFIELD SERVICES -- 0.5%
50,000 Diamond Offshore Drilling, Inc. ....... 2,050
--------
PHARMACEUTICALS -- 0.7%
50,000 Schering-Plough Corporation............ 2,325
5,000 Vertex Pharmaceuticals, Inc. .......... 423
--------
2,748
--------
REAL ESTATE -- 0.8%
25,000 Apartment Investment and Management
Company.............................. 1,152
47,000 Equity Residential Properties Trust.... 2,256
--------
3,408
--------
RESTAURANTS -- 0.5%
70,000 McDonald's Corporation................. 2,113
--------
SEMICONDUCTORS -- 0.7%
56,000 Intel Corporation...................... 2,328
21,000 Motorola, Inc. ........................ 593
--------
2,921
--------
SOFTWARE -- 0.6%
50,000 Affiliated Computer Services, Inc.(!).. 2,494
1 Microsoft Corporation(!)++............. 0
--------
2,494
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
SPECIALTY STORES -- 1.0%
80,000 Home Depot Inc. ....................... $ 4,244
--------
TOTAL COMMON STOCKS
(Cost $38,968)....................... 48,705
--------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------
<C> <S> <C>
CONVERTIBLE BONDS AND NOTES -- 52.1%
BROADCASTING AND CABLE -- 1.8%
$ 4,000 AT&T Corporation - Liberty Media Group,
4.000% 11/15/29...................... 3,735
4,000 Clear Channel Communications, Inc.,
1.500% 12/01/02...................... 3,700
--------
7,435
--------
COMMERCIAL BANKING -- 1.4%
1,697 BankAtlantic Bancorp, Inc.,
5.625% 12/01/07...................... 1,219
4,425 JMH Finance Ltd.,
4.750% 09/06/07(-)................... 4,541
--------
5,760
--------
COMMERCIAL SERVICES -- 0.5%
2,820 Quanta Services Inc.,
4.000% 07/01/07...................... 2,238
--------
COMPUTERS AND OFFICE EQUIPMENT -- 2.1%
2,850 Affiliated Computer Services, Inc.,
4.000% 03/15/05...................... 3,719
4,400 Hewlett-Packard Company,
3.200%** 10/14/17.................... 3,212
1,700 Hutchinson Technology Inc.,
6.000% 03/15/05...................... 1,558
--------
8,489
--------
DIVERSIFIED ELECTRONICS -- 3.8%
1,850 Benchmark Electronics, Inc.,
6.000% 08/15/06...................... 2,636
3,110 SCI Systems, Inc.,
3.000% 03/15/07...................... 3,098
6,600 Solectron Corporation,
2.100%** 05/08/20.................... 4,406
4,240 Transwitch Corporation,
4.500% 09/12/05(-)................... 5,215
--------
15,355
--------
DIVERSIFIED MANUFACTURING -- 1.8%
2,000 CommScope, Inc.,
4.000% 12/15/06...................... 1,700
3,450 Hutchison Whampoa,
2.875% 09/15/03(-)................... 3,476
2,135 Mark IV Industries, Inc.,
4.750% 11/01/04...................... 2,114
--------
7,290
--------
EXPLORATION AND PRODUCTION -- 2.3%
4,500 Devon Energy Corporation,
4.950% 08/15/08...................... 4,354
3,955 Kerr-McGee Corporation,
5.250% 02/15/10...................... 4,914
--------
9,268
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS FUNDS
Nations Convertible Securities Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
HEALTH SERVICES -- 1.7%
$ 2,820 Health Management Associates, Inc.,
0.250% 08/16/20(-)................... $ 1,918
8,880 Universal Health Services, Inc.,
0.426% 06/23/20(-)................... 4,995
--------
6,913
--------
INSURANCE -- 1.0%
890 Penn Treaty American Corporation,
6.250% 12/01/03...................... 739
4,180 Penn Treaty American Corporation,
6.250% 12/01/03...................... 3,469
--------
4,208
--------
MEDICAL DEVICES AND SUPPLIES -- 1.4%
4,750 Invitrogen Corporation,
5.500% 03/01/07(-)................... 4,779
900 Invitrogen Corporation,
5.500% 03/01/07...................... 906
--------
5,685
--------
METALS AND MINING -- 1.1%
6,450 Agnico-Eagle Mines Ltd.,
3.500% 01/27/04...................... 4,322
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 0.6%
3,100 Commscope Inc.,
4.000% 12/15/06...................... 2,635
--------
OILFIELD SERVICES -- 4.4%
8,400 Diamond Offshore Drilling, Inc.,
2.200%** 06/06/20(-)................. 4,211
4,600 Loews Corporation,
3.125% 09/15/07...................... 4,077
2,900 Seacor Holdings, Inc.,
5.375% 11/15/06...................... 3,190
1,500 Seacor Holdings, Inc.,
5.375% 11/15/06...................... 1,650
7,900 Transocean Sedco Forex Inc.,
2.200%** 05/24/20.................... 4,947
--------
18,075
--------
PHARMACEUTICALS -- 10.0%
1,800 Alpharma Inc.,
3.000% 06/01/06...................... 3,679
8,178 Alza Corporation,
2.030%** 07/28/20(-)................. 5,662
4,000 Centocor, Inc.,
4.750% 02/15/05...................... 5,120
2,265 COR Therapeutics, Inc.,
5.000% 03/01/07...................... 4,493
6,600 Elan International Finance Corporation,
3.280%** 12/14/18.................... 5,280
3,390 IVAX Corporation,
5.500% 05/15/07(-)................... 4,928
3,750 Roche Holdings AG,
5.800%** 01/19/15(-)................. 3,563
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
PHARMACEUTICALS -- (CONTINUED)
$ 8,800 Roche Holdings, Inc.,
2.750%** 05/06/12(-)................. $ 4,202
3,300 Vertex Pharmaceuticals,
5.000% 09/19/07(-)................... 3,828
--------
40,755
--------
PUBLISHING AND ADVERTISING -- 2.6%
3,400 Interpublic Group of Companies, Inc.,
1.870% 06/01/06...................... 3,013
4,150 Lamar Advertising Company,
5.250% 09/15/06...................... 4,140
3,590 Young & Rubicam Inc.,
3.000% 01/15/05...................... 3,523
--------
10,676
--------
RAILROADS, TRUCKING AND SHIPPING -- 1.4%
5,520 United Parcel Service, Inc.,
1.750% 09/27/07...................... 5,603
--------
REAL ESTATE -- 1.0%
3,800 EOP Operating, LP,
7.250% 11/15/08(-)................... 3,895
--------
SEMICONDUCTORS -- 2.5%
3,295 Amkor Technologies, Inc.,
5.000% 03/15/07(-)................... 2,587
2,120 ASM Lithography Holding N.V.,
4.250% 11/30/04(-)................... 2,374
3,765 Cypress Semiconductor Corporation,
3.750% 07/01/05...................... 3,544
775 General Semiconductor, Inc.,
5.750% 12/15/06...................... 773
615 Lattice Semiconductor Corporation,
4.750% 11/01/06...................... 888
--------
10,166
--------
SOFTWARE -- 1.1%
5,750 America Online, Inc.,
3.250%** 12/06/19.................... 2,946
4,280 Citrix Systems, Inc.,
5.250%** 03/22/19.................... 1,568
--------
4,514
--------
TELECOMMUNICATIONS SERVICES -- 9.6%
4,050 American Tower Corporation,
5.000% 02/15/10...................... 3,832
4,500 Bell Atlantic Financial Services,
5.750% 04/01/03...................... 4,518
4,300 Bell Atlantic Financial Services,
4.250% 09/15/05(-)................... 4,850
10,325 Cox Communications, Inc.,
0.426% 04/19/20...................... 4,285
3,150 ITC Deltacom, Inc.,
4.500% 05/15/06...................... 1,906
760 ITC Deltacom, Inc.,
4.500% 05/15/06...................... 460
2,370 Motorola, Inc.,
1.870%** 09/27/13.................... 2,237
4,500 Nextel Communications, Inc.,
5.250% 01/15/10...................... 4,219
4,900 Pinnacle Holdings Inc.,
5.500% 09/15/07(-)................... 3,210
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS FUNDS
Nations Convertible Securities Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS SERVICES --
(CONTINUED)
$ 3,800 Telefonos de Mexico SA,
4.250% 06/15/04...................... $ 4,764
7,400 US Cellular Corporation,
5.750%** 06/15/15.................... 5,031
--------
39,312
--------
TOTAL CONVERTIBLE
BONDS AND NOTES
(Cost $200,619)...................... 212,594
--------
<CAPTION>
SHARES
---------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS -- 34.4%
AEROSPACE AND DEFENSE -- 0.6%
88,000 Titan Capital Trust(!)(-).............. 2,508
--------
BROADCASTING AND CABLE -- 0.5%
51,600 MediaOne Group, Inc. .................. 1,922
--------
COMMERCIAL BANKING -- 3.3%
19,000 Bank United Corporation................ 1,163
177,300 CNB Capital Trust I.................... 6,759
96,500 Sovereign Capital Trust................ 5,543
--------
13,465
--------
DIVERSIFIED MANUFACTURING -- 0.2%
20,300 Fleetwood Capital Trust................ 639
--------
ELECTRIC POWER -- NON NUCLEAR -- 4.8%
79,600 AES Trust VII(!)....................... 6,448
89,300 Calpine Capital Trust III(!)(-)........ 6,017
82,000 Nisource Inc. ......................... 3,936
68,700 TXU Corporation........................ 3,207
--------
19,608
--------
ENERGY -- MISCELLANEOUS -- 0.8%
42,000 CMS Energy Corporation................. 1,339
28,200 SEI Trust.............................. 1,870
--------
3,209
--------
HEAVY MACHINERY -- 0.8%
190,000 Ingersoll-Rand Company................. 3,420
--------
INSURANCE -- 7.4%
89,500 Ace Limited............................ 7,221
165,000 AmerUs Group Company(!)................ 4,063
86,500 Metlife Capital Trust I................ 7,352
380,000 Philadelphia Consolidated Holdings
Corporation.......................... 3,420
65,000 Protective Life Corporation Capital
Trust II............................. 3,218
90,000 QBE Insurance Group Ltd.(!)(-)......... 4,905
--------
30,179
--------
INTEGRATED OIL -- 0.9%
80,000 Unocal Corporation..................... 3,850
--------
NATURAL GAS DISTRIBUTION -- 4.5%
138,600 Coastal Corporation.................... 5,769
90,000 El Paso Energy Capital Trust I......... 7,032
162,000 Enron Corporation...................... 5,761
--------
18,562
--------
PACKAGING AND CONTAINERS -- 0.7%
68,000 Sealed Air Corporation................. 3,060
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
PAPER AND FOREST PRODUCTS -- 0.6%
58,100 International Paper Capital Trust...... $ 2,288
--------
PHARMACEUTICALS -- 1.1%
88,000 Monsanto Company....................... 4,609
--------
PUBLISHING AND ADVERTISING -- 0.9%
113,000 Readers Digest Association............. 3,503
--------
RAILROADS, TRUCKING AND SHIPPING -- 1.2%
72,000 Union Pacific Capital Trust............ 2,907
48,400 Union Pacific Capital Trust............ 1,954
--------
4,861
--------
REAL ESTATE -- 2.1%
139,400 Apartment Investment and Management
Company.............................. 3,868
211,200 Equity Residential Properties Trust.... 4,779
--------
8,647
--------
RESTAURANTS -- 1.0%
87,200 Wendy's International, Inc............. 4,142
--------
TELECOMMUNICATIONS SERVICES -- 3.0%
33,250 Adelphia Communications................ 3,337
80,000 Citizens Utilities Company............. 4,340
18,000 Global Crossing Ltd.................... 4,469
--------
12,146
--------
TOTAL CONVERTIBLE
PREFERRED STOCKS
(Cost $128,605)...................... 140,618
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 1.4%
(Cost $5,886)
5,886 Nations Cash Reserves#.................. 5,886
--------
TOTAL INVESTMENTS
(Cost $374,078*)............... 99.8% 407,803
--------
OTHER ASSETS AND
LIABILITIES (NET).............. 0.2%
Receivable for investment securities
sold.................................. $ 10,315
Receivable for Fund shares sold......... 2,252
Dividends receivable.................... 558
Interest receivable..................... 1,382
Payable for Fund shares redeemed........ (558)
Investment advisory fee payable......... (217)
Administration fee payable.............. (77)
Shareholder servicing and distribution
fees payable.......................... (96)
Due to custodian........................ (816)
Payable for investment securities
purchased............................. (11,866)
Accrued Trustees' fees and expenses..... (15)
Accrued expenses and other
liabilities........................... (87)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 775
--------
NET ASSETS....................... 100.0% $408,578
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS FUNDS
Nations Convertible Securities Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 402
Accumulated net realized gain on
investments sold...................... 41,436
Net unrealized appreciation of
investments........................... 33,725
Paid-in capital......................... 333,015
--------
NET ASSETS.............................. $408,578
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($23,365,961 / 1,207,647 shares
outstanding).......................... $19.35
======
INVESTOR A SHARES:
Net asset value and redemption price per
share ($354,493,753 / 18,332,170
shares outstanding)................... $19.34
======
Maximum sales charge.................... 5.75%
Maximum offering price per share........ $20.52
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($24,368,454 / 1,268,095 shares
outstanding).......................... $19.22
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($6,349,598 / 327,567 shares
outstanding).......................... $19.38
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $33,725 on
investment securities was comprised of gross appreciation of $55,559 and
gross depreciation of $21,834 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $374,078.
** Rate represents annualized yield at date of purchase.
(-) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
++ Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 1.0%
ASSET-BACKED -- AUTO LOANS -- 0.3%
$ 250 Premier Auto Trust, Series 1998-1, Class
B,
5.920% 10/06/04........................ $ 247
-------
ASSET-BACKED -- HOME EQUITY LOANS -- 0.7%
423 CS First Boston Mortgage Securities
Corporation, Series 1996-2, Class A4,
6.620% 02/25/18........................ 420
241 IMC Home Equity Loan Trust, Series
1997-7, Class A3,
6.540% 11/20/12........................ 240
-------
660
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $912)............................ 907
-------
<CAPTION>
SHARES
---------
<C> <S> <C>
COMMON STOCKS -- 60.1%
AEROSPACE AND DEFENSE -- 1.0%
25,612 Honeywell International Inc. ............ 912
-------
AUTOMOTIVE -- 0.8%
13,350 Johnson Controls Inc. ................... 710
-------
COMMERCIAL BANKING -- 5.8%
27,187 Chase Manhattan Corporation.............. 1,256
30,866 Citigroup Inc. .......................... 1,669
6,225 J.P. Morgan & Company Inc. .............. 1,017
27,125 Wells Fargo Company...................... 1,246
-------
5,188
-------
COMPUTERS AND OFFICE EQUIPMENT -- 2.1%
7,000 Hewlett-Packard Company.................. 679
10,950 International Business Machines
Corporation............................ 1,232
-------
1,911
-------
CONSUMER CREDIT AND MORTGAGES -- 2.5%
20,850 American Express Company................. 1,267
26,525 MBNA Corporation......................... 1,021
-------
2,288
-------
DIVERSIFIED MANUFACTURING -- 1.3%
14,125 Eastman Kodak Company.................... 577
9,400 Procter & Gamble Company................. 630
-------
1,207
-------
ELECTRIC POWER -- NON NUCLEAR -- 5.3%
18,200 Ameren Corporation....................... 762
25,150 Consolidated Edison, Inc. ............... 858
14,400 Dominion Resources, Inc. ................ 836
14,000 FPL Group Inc. .......................... 921
49,975 TECO Energy, Inc. ....................... 1,437
-------
4,814
-------
ELECTRICAL EQUIPMENT -- 1.0%
13,500 Emerson Electric Company................. 905
-------
FINANCE -- MISCELLANEOUS -- 1.3%
22,250 Freddie Mac.............................. 1,203
-------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
FOOD PRODUCTS -- 2.7%
42,850 ConAgra Inc. ............................ $ 860
23,550 H.J. Heinz Company....................... 873
29,450 Kellogg Company.......................... 712
-------
2,445
-------
HEAVY MACHINERY -- 1.5%
20,500 Caterpillar Inc. ........................ 692
20,575 Parker Hannifin Corporation.............. 694
-------
1,386
-------
HOUSING AND FURNISHING -- 0.6%
23,300 Stanley Works............................ 537
-------
INSURANCE -- 4.2%
22,000 American International Group, Inc. ...... 2,105
8,925 CIGNA Corporation........................ 932
12,500 MGIC Investment Corporation.............. 764
-------
3,801
-------
INTEGRATED OIL -- 7.7%
12,200 Anadarko Petroleum Corporation........... 811
11,500 BP Amoco plc, ADR........................ 610
12,675 Chevron Corporation...................... 1,081
29,188 Conoco, Inc. ............................ 786
23,041 Exxon Mobil Corporation.................. 2,053
14,850 Royal Dutch Petroleum Company............ 890
18,025 Unocal Corporation....................... 639
-------
6,870
-------
INVESTMENT SERVICES -- 2.6%
15,050 Merrill Lynch & Company Inc. ............ 993
15,250 Morgan Stanley Dean Witter & Company..... 1,395
-------
2,388
-------
MEDICAL DEVICES AND SUPPLIES -- 2.6%
28,375 Abbott Laboratories...................... 1,350
11,250 Cardinal Health, Inc. ................... 992
-------
2,342
-------
METALS AND MINING -- 1.1%
10,850 Minnesota Mining & Manufacturing
Company................................ 989
-------
NATURAL GAS DISTRIBUTION -- 0.9%
13,600 El Paso Energy Corporation............... 838
-------
PHARMACEUTICALS -- 1.5%
24,150 Bristol-Myers Squibb Company............. 1,380
-------
PUBLISHING AND ADVERTISING -- 0.9%
12,900 Dow Jones & Company Inc. ................ 780
-------
RAILROADS, TRUCKING AND SHIPPING -- 1.1%
21,725 FedEx Corporation(!)..................... 963
-------
RESTAURANTS -- 0.3%
8,500 McDonald's Corporation................... 257
-------
SEMICONDUCTORS -- 0.9%
9,450 Intergrated Device Technology, Inc.(!)... 855
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
SOFTWARE -- 1.7%
19,775 Electronic Data Systems Corporation...... $ 820
19,425 First Data Corporation................... 759
-------
1,579
-------
TELECOMMUNICATIONS SERVICES -- 2.2%
22,325 SBC Communications Inc. ................. 1,116
18,165 Verizon Communications................... 880
-------
1,996
-------
TOBACCO -- 2.3%
39,200 Philip Morris Companies Inc. ............ 1,154
1 R.J. Reynolds Tobacco Holdings, Inc.++... 0
40,850 UST Inc. ................................ 934
-------
2,088
-------
UTILITIES -- MISCELLANEOUS -- 4.2%
30,175 American Water Works Company, Inc. ...... 832
44,775 AT&T Corporation......................... 1,315
19,650 NICOR Inc. .............................. 711
31,500 Sprint Corporation (FON Group)........... 923
-------
3,781
-------
TOTAL COMMON STOCKS
(Cost $48,551)......................... 54,413
-------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 14.2%
AEROSPACE AND DEFENSE -- 0.3%
$ 250 Raytheon Company,
6.750% 08/15/07........................ 237
-------
BROADCASTING AND CABLE -- 1.2%
500 Clear Channel Communications, Inc.,
7.875% 06/15/05........................ 510
520 Time Warner Inc.,
8.110% 08/15/06........................ 542
-------
1,052
-------
CHEMICALS -- SPECIALTY -- 0.4%
325 Equistar Chemicals, L.P.,
8.500% 02/15/04........................ 323
-------
COMMERCIAL BANKING -- 1.5%
500 FCB/NC Capital Trust I, Gtd. Notes,
8.050% 03/01/28........................ 416
750 Popular, Inc., MTN,
6.375% 09/15/03........................ 736
250 Union Planters Capital Trust,
8.200% 12/15/26........................ 214
-------
1,366
-------
COMMERCIAL SERVICES -- 1.3%
450 Comdisco, Inc.,
9.500% 08/15/03........................ 453
650 Service Corporation International,
6.000% 12/15/05........................ 369
500 Xerox Capital Trust I, Gtd. Notes,
8.000% 02/01/27........................ 357
-------
1,179
-------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C>
COMPUTER SERVICES -- 0.4%
$ 350 Computer Sciences Corporation,
7.500% 08/08/05........................ $ 354
-------
COMPUTERS AND OFFICE EQUIPMENT -- 0.4%
350 Compaq Computer Corporation,
7.450% 08/01/02........................ 351
-------
CONGLOMERATES -- 0.5%
250 USA Waste Services Inc.,
7.000% 07/15/28........................ 205
250 Waste Management, Inc.,
6.125% 07/15/01........................ 244
-------
449
-------
DIVERSIFIED MANUFACTURING -- 0.5%
500 Tyco International Group SA,
6.375% 06/15/05........................ 486
-------
ENERGY -- MISCELLANEOUS -- 0.7%
180 PDV America Inc., Gtd. Sr. Notes,
7.875% 08/01/03........................ 173
500 USX Corporation,
6.650% 02/01/06........................ 484
-------
657
-------
FINANCE -- MISCELLANEOUS -- 2.2%
500 Case Credit Corporation,
6.125% 02/15/03........................ 463
200 CIT Group, Inc.,
7.375% 03/15/03........................ 200
500 ERAC USA Finance Company,
6.625% 02/15/05(-)..................... 478
500 Finova Capital Corporation,
7.250% 11/08/04........................ 377
500 General Motors Acceptance Corporation,
6.150% 04/05/07........................ 467
-------
1,985
-------
FOOD AND DRUG STORES -- 0.6%
500 Safeway Inc., Sr. Notes,
7.250% 09/15/04........................ 499
-------
HEALTH SERVICES -- 0.1%
60 HCA-The Healthcare Corporation,
8.750% 09/01/10........................ 61
-------
INVESTMENT SERVICES -- 2.7%
500 Aristar, Inc.,
8.250% 06/15/05........................ 518
500 Bear Stearns Companies, Inc.,
7.800% 08/15/07........................ 506
480 Donaldson Lufkin and Jenrette,
5.875% 04/01/02........................ 472
500 Goldman Sachs Group, LP,
6.625% 12/01/04(-)..................... 492
500 Morgan Stanley Dean Witter and Company,
7.750% 06/15/05........................ 515
-------
2,503
-------
METALS AND MINING -- 0.4%
385 Alcoa Inc.,
7.375% 08/01/10........................ 388
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C>
NATURAL GAS PIPELINES -- 0.5%
$ 500 KN Energy, Inc.,
6.450% 03/01/03........................ $ 491
-------
TELECOMMUNICATIONS SERVICES -- 0.5%
500 Sprint Capital Corporation,
6.875% 11/15/28........................ 432
-------
TOTAL CORPORATE BONDS AND NOTES
(Cost $13,343)......................... 12,813
-------
FOREIGN BONDS AND NOTES -- 1.0%
395 AT&T Canada Inc., Sr. Notes,
7.650% 09/15/06........................ 399
500 Corp Andina De Fomento,
8.875% 06/01/05........................ 522
-------
TOTAL FOREIGN BONDS AND NOTES
(Cost $892)............................ 921
-------
MORTGAGE-BACKED SECURITIES -- 21.1%
COMMERCIAL MORTGAGE-BACKED SECURITIES --
8.0%
750 DLJ Commercial Mortgage Corporation,
Series 1999-CG1, Class A1B,
6.460% 01/10/09........................ 719
750 DLJ Commercial Mortgage Corporation,
Series 1999-CG2, Class A1B,
7.300% 06/10/09........................ 756
750 DLJ Commercial Mortgage Corporation,
Series 1999-CG3, Class A1B,
7.340% 09/10/09........................ 752
750 First Union National Bank Commercial
Mortgage, Series 1999-C4, Class A2,
7.390% 11/15/09........................ 761
440 First Union-Chase Commercial Mortgage,
Series 1999-C2, Class A2,
6.645% 04/15/09........................ 428
750 GMAC Commercial Mortgage Securities Inc.,
Series 1999-C1, Class A2,
6.175% 05/15/33........................ 704
800 Heller Financial Commercial Mortgage
Asset Corporation, Series 2000-PH1,
Class A2,
7.750% 11/15/09........................ 828
800 Prudential Securities Secured Financing
Corporation, Series 1999-C2, Class A2,
7.193% 04/15/09........................ 802
760 Salomon Brothers Mortgage Securities,
Series 2000-C1, Class A2,
7.520% 12/18/09........................ 775
702 Salomon Brothers Mortgage Securities,
Series 2000-NL1, Class A1,
6.601% 04/15/08(-)..................... 687
-------
7,212
-------
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) CERTIFICATES -- 1.5%
70 8.000% 07/01/10.......................... 71
827 8.000% 09/01/25.......................... 841
438 8.000% 06/01/30.......................... 444
-------
1,356
-------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) CERTIFICATES -- 11.1%
$ 1,130 6.500% 08/01/10.......................... $ 1,117
536 8.500% 08/01/11.......................... 552
828 6.500% 03/01/15.......................... 812
286 7.000% 01/25/21.......................... 282
3,512 6.500% 07/01/29.......................... 3,379
2,627 7.000% 07/01/29.......................... 2,575
1,427 6.500% 05/01/30.......................... 1,371
-------
10,088
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
CERTIFICATES -- 0.5%
464 7.500% 12/15/23.......................... 467
-------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $18,922)....................... 19,123
-------
U.S. TREASURY OBLIGATIONS -- 1.4%
U.S. TREASURY STRIPS -- 1.4%
3,720 Principal only 11/15/21.................. 1,038
490 Principal only 08/15/26.................. 106
610 Principal only 02/15/27.................. 128
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,188)........................ 1,272
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.1%
(Cost $1,913)
1,913 Nations Cash Reserves#.................... 1,913
-------
TOTAL INVESTMENTS
(Cost $85,721*)................... 100.9% 91,362
-------
OTHER ASSETS AND
LIABILITIES (NET)............... (0.9)%
Receivable for investment securities
sold.................................... $ 7,168
Dividends receivable...................... 86
Interest receivable....................... 346
Collateral on securities loaned........... (206)
Payable for Fund shares redeemed.......... (164)
Investment advisory fee payable........... (29)
Administration fee payable................ (17)
Shareholder servicing and distribution
fees payable............................ (40)
Due to custodian.......................... (31)
Payable for investment securities
purchased............................... (7,890)
Accrued Trustees' fees and expenses....... (33)
Accrued expenses and other liabilities.... (42)
TOTAL OTHER ASSETS AND
LIABILITIES (NET)....................... (852)
-------
NET ASSETS........................ 100.0% $90,510
=======
NET ASSETS CONSIST OF:
Undistributed net investment income....... $ 184
Accumulated net realized loss on
investments sold........................ (773)
Net unrealized appreciation of
investments............................. 5,641
Paid-in capital........................... 85,458
-------
NET ASSETS................................ $90,510
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS FUNDS
Nations Balanced Assets Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($34,074,802 / 3,334,901
shares outstanding)..................... $10.22
======
INVESTOR A SHARES:
Net asset value and redemption price per
share ($10,069,608 / 986,444 shares
outstanding)............................ $10.21
======
Maximum sales charge...................... 5.75%
Maximum offering price per share.......... $10.83
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($45,489,368 / 4,464,564 shares
outstanding)............................ $10.19
======
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($876,088 / 86,290 shares
outstanding)............................ $10.15
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $5,641 on
investment securities was comprised of gross appreciation of $7,830 and
gross depreciation of $2,189 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $85,721.
(-) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
++ Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $206.
ABBREVIATIONS:
ADR -- American Depository Receipt
MTN -- Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
ASSET-BACKED SECURITIES -- 0.7%
ASSET-BACKED -- AUTO LOANS -- 0.0%
$ 167 AESOP Funding II LLC,
Series 1997-1A, Class A1,
6.220% 10/20/01(-)................. $ 167
--------
ASSET-BACKED -- HOME EQUITY LOANS --
0.7%
500 ContiMortgage Home Equity Loan Trust,
Series 1998-1, Class A4,
6.280% 01/15/13.................... 494
650 EQCC Home Equity Loan Trust, Series
1997-2, Class A6,
6.720% 02/15/12.................... 650
787 First Plus Home Loan Trust, Series
1996-3, Class A6,
7.600% 09/20/14.................... 786
650 First Plus Home Loan Trust, Series
1997-1, Class A6,
6.950% 12/10/15.................... 648
100 IMC Home Equity Loan Trust, Series
1997-5, Class A7,
6.900% 01/20/22.................... 99
--------
2,677
--------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,870).................... 2,844
--------
<CAPTION>
SHARES
---------
<C> <S> <C>
COMMON STOCKS -- 61.9%
AEROSPACE AND DEFENSE -- 0.8%
2,400 Alliant Techsystems Inc.(!).......... 197
28,100 Boeing Company....................... 1,771
14,100 Northrop Grumman Corporation......... 1,281
--------
3,249
--------
AIRLINES -- 0.2%
12,300 Delta Air Lines, Inc. ............... 546
1,500 Forward Air Corporation(!)........... 53
1,800 Northwest Airlines Corporation(!).... 44
--------
643
--------
APPAREL AND TEXTILES -- 0.2%
800 Columbia Sportswear Company(!)....... 37
3,200 Jones Apparel Group, Inc.(!)......... 85
1,050 Kenneth Cole Productions, Inc........ 37
9,500 Liz Claiborne Inc.................... 365
2,800 Reebok International, Ltd.(!)........ 53
1,700 Timberland Company, Class A.......... 70
--------
647
--------
AUTOMOTIVE -- 0.7%
5,475 ArvinMeritor, Inc. .................. 80
2,600 Copart, Inc. ........................ 36
67,042 Ford Motor Company(!)................ 1,696
12,825 General Motors Corporation........... 834
1,100 Gentex Corporation(!)................ 28
4,050 Lear Corporation(!).................. 83
2,100 Mascotech, Inc. ..................... 35
2,200 Oshkosh Truck Corporation............ 85
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
AUTOMOTIVE -- (CONTINUED)
1,800 Superior Industries International.... $ 54
2,300 Tower Automotive Inc.(!)............. 22
--------
2,953
--------
BEVERAGES -- 1.2%
800 Adolph Coors Company, Class B........ 51
50,600 Anheuser-Busch Companies, Inc. ...... 2,140
14,500 Coca-Cola Company.................... 799
2,500 Constellation Brands, Inc.(!)........ 136
46,300 PepsiCo, Inc. ....................... 2,130
--------
5,256
--------
BROADCASTING AND CABLE -- 1.6%
2,200 Hispanic Broadcasting Corporation.... 61
25,000 Time Warner Inc. .................... 1,956
5,200 Univision Communications, Inc. ...... 194
40,067 Viacom Inc., Class B(!).............. 2,345
51,300 Walt Disney Company.................. 1,962
2,650 Westwood One, Inc. .................. 57
--------
6,575
--------
CHEMICALS -- BASIC -- 0.6%
11,500 Air Products & Chemicals Inc. ....... 414
9,393 E.I. duPont de Nemours and Company... 389
9,600 Eastman Chemical Company............. 355
16,700 Praxair Inc. ........................ 624
15,400 Union Carbide Corporation............ 581
--------
2,363
--------
CHEMICALS -- SPECIALTY -- 0.2%
6,000 Albemarle Corporation................ 121
3,300 Arch Chemicals Inc. ................. 60
3,600 Cabot Corporation.................... 114
6,200 Cytec Industries Inc.(!)............. 208
1,500 OM Group, Inc. ...................... 65
2,200 Scotts Company, Class A(!)........... 74
--------
642
--------
COMMERCIAL BANKING -- 4.0%
4,220 Associated Banc-Corp................. 111
2,800 Astoria Financial Corporation........ 108
22,762 Chase Manhattan Corporation.......... 1,051
134,566 Citigroup Inc. ...................... 7,274
4,100 City National Corporation............ 158
4,500 Cullen Frost Bankers Inc. ........... 146
10,900 Dime Bancorp, Inc. .................. 235
2,600 Downey Financial Corporation......... 103
2,100 First Midwest Bancorp, Inc. ......... 56
2,300 First Virginia Banks Inc. ........... 98
5,900 FirstFed Financial Corporation(!).... 136
63,943 FleetBoston Financial Corporation.... 2,494
5,100 Hibernia Corporation................. 62
2,600 Hudson United Bancorp................ 72
5,300 J.P. Morgan & Company Inc. .......... 866
1,700 MAF Bancorp Inc. .................... 42
33,900 Mellon Financial Corporation......... 1,572
3,000 Mercantile Bankshares Corporation.... 109
2,800 National Commerce Bancorp............ 56
9,600 North Fork Bancorporation, Inc. ..... 208
19,200 PNC Bank Corporation................. 1,248
1,800 Silicon Valley Bancshares............ 105
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
COMMERCIAL BANKING -- (CONTINUED)
2,300 Southwest Bancorp of Texas(!)........ $ 75
5,100 TCF Financial Corporation............ 192
2,000 Whitney Holding Corporation.......... 73
--------
16,650
--------
COMMERCIAL SERVICES -- 0.6%
1,200 Administaff, Inc.(!)................. 91
2,800 ADVO Inc.(!)......................... 92
1,800 Apollo Group Inc., Class A(!)........ 72
2,900 Catalina Marketing Corporation....... 109
1,500 ChoicePoint Inc. .................... 69
1,900 Cintas Corporation................... 83
4,300 Comdisco, Inc. ...................... 82
3,900 eLoyalty Corporation(!).............. 50
1,000 F.Y.I. Incorporated(!)............... 37
3,900 Fiserv, Inc.(!)...................... 233
1,200 Heidrick & Struggles International,
Inc.(!)............................ 62
600 Learning Tree International,
Inc.(!)............................ 29
3,100 Manpower Inc. ....................... 99
8,500 Omnicom Group Inc. .................. 619
1,700 Quanta Services, Inc.(!)............. 47
2,100 Rent-A-Center, Inc.(!)............... 73
5,200 Robert Half International Inc. ...... 180
1,000 SCP Pool Corporation................. 30
1,800 SEI Investment Company............... 127
800 Startek, Inc.(!)..................... 23
1,100 Teletech Holdings Inc.(!)............ 27
2,400 Tetra Tech Inc.(!)................... 69
4,300 True North Communications............ 154
2,700 Viad Corporation..................... 72
--------
2,529
--------
COMPUTER SERVICES -- 1.1%
37,100 America Online Inc. ................. 1,995
19,100 Automatic Data Processing Inc. ...... 1,277
2,000 CSG Systems International, Inc.(!)... 58
600 Fair, Issac and Company Inc. ........ 26
3,600 MarchFirst, Inc.(!).................. 56
14,100 Paychex, Inc. ....................... 740
3,600 Sapient Corporation.................. 146
3,100 Sungard Data Systems, Inc.(!)........ 133
--------
4,431
--------
COMPUTERS AND OFFICE EQUIPMENT -- 4.5%
22,300 Apple Computer Inc. ................. 574
3,150 Avocent Corporation(!)............... 174
45,700 Dell Computer Corporation(!)......... 1,408
49,000 EMC Corporation...................... 4,856
20,600 Hewlett-Packard Company.............. 1,998
11,000 International Business Machines
Corporation........................ 1,238
23,000 Jabil Circuit, Inc. ................. 1,305
8,600 NCR Corporation(!)................... 325
9,200 Network Appliance, Inc. ............. 1,172
7,000 Palm, Inc.(!)........................ 371
3,400 PerkinElmer, Inc. ................... 355
1,000 Radisys Corporation(!)............... 51
4,500 Sanmina Corporation.................. 421
9,000 Solectron Corporation................ 415
37,850 Sun Microsystems, Inc. .............. 4,418
2,587 Symbol Technologies, Inc. ........... 93
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
COMPUTERS AND OFFICE EQUIPMENT --
(CONTINUED)
2,100 Tech Data Corporation(!)............. $ 90
400 Tektronix, Inc. ..................... 31
1,700 Zebra Technologies Corporation(!).... 82
--------
19,377
--------
CONGLOMERATES -- 1.2%
14,200 Dover Corporation.................... 667
1,800 Dycom Industries, Inc. .............. 75
900 Insituform Technologies Inc., Class
A(!)............................... 30
500 SPX Corporation(!)................... 71
10,200 Textron Inc. ........................ 470
1,000 The Shaw Group Inc.(!)............... 71
40,200 Tyco International Ltd. ............. 2,085
25,525 United Technologies Corporation...... 1,768
--------
5,237
--------
CONSUMER CREDIT AND MORTGAGES -- 1.1%
18,000 American Express Company............. 1,094
29,200 Fannie Mae........................... 2,088
2,500 Greenpoint Financial Corporation..... 74
23,200 MBNA Corporation..................... 893
2,000 Metris Companies Inc. ............... 79
2,600 Providian Financial Corporation...... 330
--------
4,558
--------
DEPARTMENT AND DISCOUNT STORES -- 1.4%
10,100 Kohls Corporation.................... 583
22,600 Sears, Roebuck and Company........... 733
91,200 Wal-Mart Stores, Inc. ............... 4,388
--------
5,704
--------
DIVERSIFIED ELECTRONICS -- 0.1%
2,200 Aeroflex, Inc. ...................... 107
2,300 Anixter International Inc.(!)........ 67
2,000 Harman International Industries...... 78
1,200 Helix Technology Corporation......... 36
1,900 Kent Electronics Corporation(!)...... 45
2,700 Waters Corporation................... 241
--------
574
--------
DIVERSIFIED MANUFACTURING -- 2.4%
2,800 Belden Inc. ......................... 66
164,000 General Electric Company............. 9,461
3,000 Harsco Corporation................... 66
2,000 Nordson Corporation.................. 57
3,600 Plexus Corporation................... 254
--------
9,904
--------
ELECTRIC POWER -- NON NUCLEAR -- 1.9%
4,500 Allegheny Energy, Inc. .............. 172
4,100 Allete(!)............................ 91
3,800 Calpine Corporation.................. 397
6,800 Conectiv, Inc. ...................... 122
15,100 Duke Energy Corporation.............. 1,295
7,200 Dynegy Inc. ......................... 410
6,600 Energy East Corporation.............. 149
18,500 FPL Group Inc. ...................... 1,216
2,200 Idacorp, Inc. ....................... 102
2,610 NSTAR................................ 105
26,300 PECO Energy Company.................. 1,592
2,100 Pinnacle West Capital Corporation.... 107
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
ELECTRIC POWER -- NON NUCLEAR --
(CONTINUED)
5,400 Public Service Company of New
Mexico............................. $ 140
5,200 TECO Energy, Inc. ................... 150
1,800 The Montana Power Company............ 60
1,700 UIL Holdings Corporation............. 87
25,400 Unicom Corporation................... 1,427
3,400 UniSource Energy Corporation......... 56
5,300 UtiliCorp United Inc. ............... 137
--------
7,815
--------
ELECTRICAL EQUIPMENT -- 0.1%
1,900 AMETEK, Inc. ........................ 40
2,500 C&D Technologies, Inc. .............. 142
2,000 Littelfuse, Inc.(!).................. 59
700 Park Electrochemical Corporation..... 39
--------
280
--------
EXPLORATION AND PRODUCTION -- 0.0%+
1,700 Stone Energy Corporation(!).......... 94
--------
FINANCE -- MISCELLANEOUS -- 0.1%
6,800 AmeriCredit Corporation(!)........... 196
6,500 Concord EFS, Inc.(!)................. 231
--------
427
--------
FOOD AND DRUG STORES -- 0.3%
3,000 Casey's General Stores, Inc. ........ 39
20,600 Safeway, Inc.(!)..................... 961
1,800 Whole Foods Market Inc.(!)........... 97
--------
1,097
--------
FOOD PRODUCTS -- 1.0%
5,000 Bestfoods............................ 364
40,000 ConAgra Inc. ........................ 803
1,391 Hain Celestial Group, Inc.(!)........ 49
3,500 McCormick and Company, Inc. ......... 104
2,400 Michael Foods Inc. .................. 56
6,500 Nabisco Group Holdings Corporation... 185
2,600 Performance Food Group Company(!).... 98
11,400 Quaker Oats Company.................. 901
7,500 Smithfield Foods Inc.(!)............. 197
2,800 Suiza Foods Corporation(!)........... 142
18,200 SYSCO Corporation.................... 843
9,600 Unilever NV, ADR..................... 463
--------
4,205
--------
HEALTH SERVICES -- 0.4%
2,400 Cerner Corporation(!)................ 111
3,000 Coventry Health Care Inc.(!)......... 45
1,100 Express Scripts Inc., Class A(!)..... 79
1,300 Invacare Corporation................. 42
3,600 Lincare Holdings Inc.(!)............. 103
2,900 Orthodontic Centers of America(!).... 97
500 Quest Diagnostics Inc.(!)............ 57
5,300 Trigon Healthcare, Inc.(!)........... 279
8,900 UnitedHealth Group Inc.(!)........... 880
1,400 Universal Health Services Inc., Class
B(!)............................... 120
750 Wellpoint Health Networks Inc.(!).... 72
--------
1,885
--------
HEAVY MACHINERY -- 0.3%
2,700 Briggs & Stratton Corporation........ 102
13,500 Deere & Company...................... 449
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
HEAVY MACHINERY -- (CONTINUED)
6,400 JLG Industries Inc. ................. $ 78
16,500 Parker Hannifin Corporation.......... 557
1,500 Toro Company......................... 47
--------
1,233
--------
HOUSEHOLD PRODUCTS -- 0.8%
18,700 Avon Products, Inc. ................. 764
1,500 Blyth Industries, Inc. .............. 35
4,400 Church & Dwight Company, Inc. ....... 81
8,700 Colgate-Palmolive Company............ 411
28,100 Kimberly-Clark Corporation........... 1,569
13,100 The Clorox Company................... 518
--------
3,378
--------
HOUSING AND FURNISHING -- 0.2%
3,500 American Standard Companies Inc.(!).. 156
4,796 D.R. Horton Inc. .................... 82
1,500 Lennar Corporation................... 45
4,100 M.D.C. Holdings, Inc. ............... 107
5,200 Mohawk Industries Inc.(!)............ 113
3,800 Pulte Corporation.................... 125
1,400 Salton, Inc.(!)...................... 45
3,700 The Ryland Group, Inc. .............. 115
1,800 Toll Brothers, Inc.(!)............... 62
--------
850
--------
INSURANCE -- 2.3%
19,500 American General Corporation......... 1,521
15,150 American International Group,
Inc. .............................. 1,450
1,300 Arthur J. Gallagher & Company........ 77
18,400 AXA Financial, Inc. ................. 937
8,000 CIGNA Corporation.................... 835
1,696 Delphi Financial Group Inc., Class
A.................................. 69
3,600 Everest Re Group Ltd. ............... 178
2,900 Fidelity National Financial, Inc. ... 72
30,700 Hartford Financial Services Group,
Inc. .............................. 2,240
28,500 MGIC Investment Corporation.......... 1,742
7,500 Old Republic International
Corporation........................ 180
2,700 PMI Group, Inc. ..................... 183
2,400 Radian Group Inc. ................... 162
1,600 Renaissance Re Holdings Ltd. ........ 102
--------
9,748
--------
INTEGRATED OIL -- 2.9%
2,200 AGL Resources Inc. .................. 44
16,600 Apache Corporation................... 981
29,000 Chevron Corporation.................. 2,472
2,100 EOG Resources, Inc. ................. 82
78,407 Exxon Mobil Corporation.............. 6,988
1,600 Murphy Oil Corporation............... 104
2,500 Newfield Exploration Company(!)...... 117
30,700 Occidental Petroleum Corporation..... 670
3,200 Pogo Producing Company............... 81
3,200 Ultramar Diamond Shamrock
Corporation........................ 81
23,475 USX-Marathon Group Inc. ............. 666
5,500 Vintage Petroleum, Inc. ............. 125
--------
12,411
--------
INVESTMENT SERVICES -- 2.1%
2,800 A.G. Edwards, Inc. .................. 146
400 Dain Rauscher Corporation............ 37
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT SERVICES -- (CONTINUED)
2,000 Eaton Vance Corporation.............. $ 102
1,100 Jefferies Group, Inc. ............... 30
1,900 Legg Mason Inc. ..................... 110
14,300 Lehman Brothers Holdings Inc. ....... 2,113
23,000 Merrill Lynch & Company Inc. ........ 1,518
27,500 Morgan Stanley Dean Witter &
Company............................ 2,515
1,600 Raymond James Financial, Inc. ....... 53
15,300 State Street Corporation............. 1,989
2,900 Waddell & Reed Financial, Inc. ...... 90
--------
8,703
--------
LODGING AND RECREATION -- 0.4%
3,500 Aztar Corporation(!)................. 54
4,050 Brunswick Corporation................ 74
4,000 Darden Restaurants Inc. ............. 83
18,100 Harley-Davidson Inc. ................ 867
12,400 Marriott International Inc., Class
A.................................. 452
1,500 MeriStar Hospitality Corporation..... 30
9,900 Park Place Entertainment
Corporation(!)..................... 150
2,200 Polaris Industries Inc. ............. 78
700 Sabre Holdings Corporation(!)........ 20
2,900 Winnebago Industries................. 36
--------
1,844
--------
MEDICAL DEVICES AND SUPPLIES -- 2.0%
2,000 ADAC Laboratories Designs(!)......... 42
14,800 Baxter International Inc. ........... 1,181
1,900 Beckman Coulter, Inc. ............... 147
26,850 Biomet, Inc. ........................ 940
1,400 C.R. Bard, Inc. ..................... 59
17,000 Cardinal Health, Inc. ............... 1,499
1,100 Coherent Inc.(!)..................... 75
2,500 Cooper Companies Inc. ............... 88
2,500 Datascope Corporation................ 84
800 Diagnostic Products Corporation...... 43
30,300 Johnson & Johnson.................... 2,846
2,600 Minimed Inc. ........................ 232
7,100 PE Corp-PE Biosystems Group.......... 827
1,337 Priority Healthcare Corporation(!)... 102
1,900 Respironics, Inc.(!)................. 32
1,900 Stryker Corporation.................. 82
1,000 Techne Corporation(!)................ 112
1,800 Varian Medical Systems, Inc.(!)...... 81
--------
8,472
--------
METALS AND MINING -- 0.3%
6,200 AK Steel Holding Corporation......... 58
15,200 Barrick Gold Corporation............. 232
2,100 Carpenter Technology Corporation..... 61
700 Mueller Industries Inc.(!)........... 16
2,800 Precision Castparts Corporation...... 107
1,400 Quanex Corporation................... 27
3,700 Reliance Steel & Aluminum Company.... 78
2,200 Texas Industries Inc. ............... 70
28,000 USX U.S. Steel Group Inc. ........... 425
--------
1,074
--------
NATURAL GAS DISTRIBUTION -- 0.7%
23,300 Coastal Corporation.................. 1,727
5,100 Energen Corporation.................. 152
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
NATURAL GAS DISTRIBUTION -- (CONTINUED)
8,200 Enron Corporation.................... $ 719
2,200 Equitable Resources Inc. ............ 139
3,650 KeySpan Corporation.................. 146
3,100 Northwest Natural Gas Company........ 71
--------
2,954
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 4.3%
1,300 Adaptive Broadband Corporation....... 25
200 ADC Telecommunications, Inc. ........ 5
2,400 ADTRAN, Inc.(!)...................... 102
800 Advanced Fibre Communications,
Inc.(!)............................ 30
2,000 Brocade Communications Systems,
Inc. .............................. 472
700 Brooktrout Inc.(!)................... 23
1,800 C-COR Electronics.................... 28
2,850 Cable Design Technologies
Corporation........................ 69
4,400 CIENA Corporation.................... 540
145,100 Cisco Systems, Inc. ................. 8,017
6,300 Comverse Technology, Inc. ........... 680
8,500 Corning Inc. ........................ 2,525
2,600 DMC Stratex Networks, Inc.(!)........ 42
1,500 Foundry Networks, Inc. .............. 100
9,200 JDS Uniphase Corporation............. 871
1,800 Juniper Networks, Inc. .............. 394
57,700 Nortel Networks Corporation.......... 3,437
3,000 Plantronics Inc. .................... 114
2,600 Polycom, Inc. ....................... 174
2,800 Powerwave Technologies, Inc. ........ 106
1,000 Proxim, Inc. ........................ 45
700 Rainbow Technologies, Inc.(!)........ 25
12,200 Scientific-Atlanta, Inc. ............ 776
900 Terayon Communication Systems,
Inc. .............................. 31
800 ViaSat Inc. ......................... 18
1,300 Westell Technologies, Inc.(!)........ 17
--------
18,666
--------
OILFIELD SERVICES -- 0.7%
24,050 ENSCO International Inc. ............ 921
3,500 Helmerich & Payne, Inc. ............. 126
4,000 Hughes Supply Inc. .................. 78
4,800 Noble Drilling Corporation(!)........ 241
5,300 Offshore Logistics Inc.(!)........... 95
10,100 Schlumberger Ltd. ................... 831
2,600 Smith International, Inc.(!)......... 212
900 Swift Energy Company(!).............. 37
1,800 UTI Energy Corporation(!)............ 80
2,200 Varco International, Inc.(!)......... 46
4,200 Weatherford International, Inc.(!)... 181
--------
2,848
--------
PACKAGING AND CONTAINERS -- 0.0%+
1,300 AptarGroup Inc. ..................... 31
--------
PAPER AND FOREST PRODUCTS -- 0.3%
12,600 Bowater Incorporated................. 585
3,100 Buckeye Technologies Inc.(!)......... 64
1,600 Georgia - Pacific Corporation (Timber
Group)............................. 43
5,304 International Paper Company.......... 152
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
PAPER AND FOREST PRODUCTS --
(CONTINUED)
3,600 United Stationers Inc.(!)............ $ 97
7,400 Weyerhaeuser Company................. 299
--------
1,240
--------
PHARMACEUTICALS -- 4.8%
13,000 Allergan, Inc. ...................... 1,098
1,900 Alpharma Inc., Class A............... 116
18,300 Amgen Inc. .......................... 1,278
1,500 Barr Laboratories, Inc. ............. 99
3,666 Bindley Western Industries........... 117
7,200 Biogen, Inc.(!)...................... 439
41,500 Bristol-Myers Squibb Company......... 2,370
1,200 Cephalon, Inc.(!).................... 58
5,500 Chiron Corporation(!)................ 248
2,300 COR Therapeutics, Inc. .............. 143
2,100 Dura Pharmaceuticals Inc.(!)......... 74
7,100 Eli Lilly and Company................ 576
200 Enzo Biochem, Inc.(!)................ 10
2,700 Forest Laboratories, Inc.(!)......... 310
2,800 Genzyme Corporation(!)............... 191
1,200 Gilead Sciences, Inc.(!)............. 132
1,900 ICN Pharmaceuticals Incorporated..... 63
900 IDEC Pharmaceuticals Corporation..... 158
2,000 Incyte Pharmaceuticals, Inc. ........ 82
2,350 IVAX Corporation..................... 108
1 King Pharmaceuticals, Inc.(!)++...... 0
2,000 Medicis Pharmaceutical Corporation,
Class A(!)......................... 123
58,400 Merck & Company, Inc. ............... 4,346
1,300 Millennium Pharmaceuticals, Inc. .... 190
3,100 NBTY, Inc.(!)........................ 20
600 Noven Pharmaceuticals, Inc.(!)....... 26
119,800 Pfizer Inc. ......................... 5,383
700 Protein Design Labs, Inc. ........... 84
1,000 Regeneron Pharmaceuticals, Inc.(!)... 33
49,700 Schering-Plough Corporation.......... 2,311
200 Sepracor Inc.(!)..................... 25
1,400 Syncor International Corporation..... 52
2,200 Vertex Pharmaceuticals, Inc. ........ 186
--------
20,449
--------
PUBLISHING AND ADVERTISING -- 0.4%
1,000 Harcourt General Inc. ............... 59
1,600 Harte-Hanks, Inc. ................... 44
1,700 John H. Harland Company.............. 26
12,700 McGraw-Hill Companies, Inc. ......... 807
12,300 New York Times Company, Class A...... 484
1,200 Penton Media Inc. ................... 33
4,250 Readers Digest Association, Inc. .... 150
2,100 Scholastic Corporation(!)............ 167
38 The Washington Post Company.......... 20
--------
1,790
--------
RAILROADS, TRUCKING AND SHIPPING -- 0.3%
3,500 American Freightways Corporation(!).. 56
4,500 Arkansas Best Corporation(!)......... 69
1,500 C.H. Robinson Worldwide, Inc. ....... 85
1,600 CNF Transportation Inc. ............. 36
2,400 Expeditors International of
Washington, Inc. .................. 108
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
RAILROADS, TRUCKING AND SHIPPING --
(CONTINUED)
2,300 GATX Corporation..................... $ 96
1,800 Heartland Express Inc.(!)............ 31
2,600 Kirby Corporation(!)................. 51
3,600 Roadway Express, Inc. ............... 65
15,600 Union Pacific Corporation............ 606
--------
1,203
--------
RESTAURANTS -- 0.2%
3,800 Brinker International, Inc.(!)....... 114
3,800 CEC Entertainment Inc.(!)............ 122
4,500 Jack in the Box Inc.(!).............. 96
5,500 Ruby Tuesday Inc. ................... 62
16,000 Starbucks Corporation(!)............. 641
--------
1,035
--------
SEMICONDUCTORS -- 3.8%
1,900 Actel Corporation(!)................. 68
3,000 Alliance Semiconductor
Corporation(!)..................... 60
2,500 Alpha Industries, Inc. .............. 85
14,500 Altera Corporation................... 692
13,100 Analog Devices, Inc. ................ 1,082
22,900 Applied Materials, Inc. ............. 1,357
1,700 Applied Micro Circuits
Corporation(!)..................... 352
2,900 Arrow Electronics, Inc.(!)........... 99
4,800 Atmel Corporation.................... 73
2,200 Avnet, Inc. ......................... 62
5,500 Broadcom Corporation, Class A........ 1,341
2,000 Cognex Corporation(!)................ 79
1,300 Credence Systems Corporation......... 39
3,600 Cypress Semiconductor
Corporation(!)..................... 150
2,900 Dallas Semiconductor Corporation..... 95
1,600 Electro Scientific Industries,
Inc. .............................. 56
2,100 General Semiconductor, Inc.(!)....... 26
78,650 Intel Corporation.................... 3,268
3,300 Intergrated Device Technology,
Inc.(!)............................ 299
2,400 International Rectifier
Corporation(!)..................... 121
4,400 KEMET Corporation.................... 122
6,900 KLA-Tencor Corporation............... 284
700 Lattice Semiconductor
Corporation(!)..................... 38
7,600 Linear Technology Corporation........ 492
1,300 Micrel Inc. ......................... 87
4,725 Microchip Technology Inc. ........... 156
14,000 Micron Technology, Inc. ............. 644
7,500 National Semiconductor
Corporation(!)..................... 302
2,200 Nvidia Corporation................... 180
2,300 PMC - Sierra, Inc. .................. 495
1,700 QLogic Corporation................... 150
1,300 Sawtek, Inc.(!)...................... 50
2,075 SDL, Inc. ........................... 642
1,600 Semtech Corporation.................. 69
2,800 Silicon Valley Group, Inc.(!)........ 74
1,100 Technitrol Inc. ..................... 111
5,900 Teradyne, Inc.(!).................... 207
29,300 Texas Instruments Inc. .............. 1,382
2,600 TranSwitch Corporation............... 166
2,600 TriQuint Semiconductor, Inc. ........ 95
4,350 Vishay Intertechnology, Inc. ........ 134
10,100 Xilinx, Inc. ........................ 865
--------
16,149
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
SOFTWARE -- 3.9%
3,600 Adobe Systems Inc. .................. $ 559
1,000 Affiliated Computer Services,
Inc.(!)............................ 50
1,800 Aspen Technology, Inc.(!)............ 81
2,300 Avid Technology, Inc.(!)............. 32
2,750 BroadVision, Inc. ................... 71
7,200 Cadence Design Systems, Inc.(!)...... 185
2,550 Dendrite International, Inc. ........ 68
2,800 DST Systems, Inc.(!)................. 329
1,600 Electronic Arts Inc. ................ 79
1,800 FileNET Corporation(!)............... 33
16,775 First Data Corporation............... 655
900 HNC Software Inc.(!)................. 74
1,600 Hyperion Solutions Corporation(!).... 41
11,300 Intuit Inc. ......................... 644
800 J.D.Edwards and Company(!)........... 21
2,000 Jack Henry & Associates.............. 87
1,200 Macromedia Inc.(!)................... 97
300 Mercury Interactive Corporation...... 47
83,400 Microsoft Corporation(!)............. 5,029
1,400 National Instruments Corporation(!).. 62
58,400 Oracle Corporation................... 4,598
1,000 Project Software & Development,
Inc. .............................. 16
4,200 Rational Software Corporation........ 291
2,000 RSA Security Inc.(!)................. 86
6,200 Siebel Systems, Inc. ................ 690
5,500 Sybase, Inc.(!)...................... 127
2,250 Symantec Corporation(!).............. 99
1,300 The BISYS Group, Inc.(!)............. 101
2,100 Veritas DGC Inc.(!).................. 61
6,900 VERITAS Software Corporation......... 980
1,700 Verity, Inc. ........................ 61
11,300 Yahoo! Inc. ......................... 1,028
--------
16,382
--------
SPECIALTY STORES -- 1.5%
3,700 Abercrombie & Fitch Company(!)....... 71
23,600 Bed Bath & Beyond, Inc. ............. 576
13,100 Best Buy Company, Inc.(!)............ 833
3,700 BJ's Wholesale Club, Inc.(!)......... 126
3,000 CDW Computer Centers, Inc. .......... 207
2,100 Cost Plus, Inc.(!)................... 63
1,700 Dollar Tree Stores, Inc. ............ 69
1,600 Dress Barn Inc.(!)................... 34
1,400 Footstar Inc.(!)..................... 45
37,750 Home Depot Inc. ..................... 2,002
1,500 Insight Enterprises Inc. ............ 41
41,200 Limited Inc. ........................ 909
2,500 Linens 'N Things Inc.(!)............. 64
1,600 Michaels Stores Inc.(!).............. 64
4,600 Pier 1 Imports Inc. ................. 62
1,600 Talbots, Inc. ....................... 106
6,200 The Men's Wearhouse Inc.(!).......... 176
20,900 Tiffany & Company.................... 806
2,700 Zale Corporation(!).................. 88
--------
6,342
--------
TELECOMMUNICATIONS SERVICES -- 3.6%
67,350 BellSouth Corporation................ 2,711
2,500 Broadwing Inc.(!).................... 64
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-----------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS SERVICES --
(CONTINUED)
14,800 Nextel Communications, Inc. ......... $ 692
49,300 Qwest Communications International,
Inc.(!)............................ 2,369
79,966 SBC Communications Inc. ............. 3,999
3,500 TALK.com, Inc.(!).................... 15
1,600 Telephone and Data Systems, Inc. .... 177
49,239 Verizon Communications............... 2,385
85,286 WorldCom, Inc.(!).................... 2,591
--------
15,003
--------
TOBACCO -- 0.4%
49,600 Philip Morris Companies Inc. ........ 1,460
2,200 R.J. Reynolds Tobacco Holdings,
Inc. .............................. 71
--------
1,531
--------
UTILITIES -- MISCELLANEOUS -- 0.0%+
1,800 Philadelphia Suburban Corporation.... 42
--------
TOTAL COMMON STOCKS
(Cost $194,715).................... 260,473
--------
CONVERTIBLE PREFERRED STOCKS -- 0.1%
(Cost $245)
PACKAGING AND CONTAINERS -- 0.1%
4,845 Sealed Air Corporation............... 218
--------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 14.8%
AEROSPACE AND DEFENSE -- 0.4%
$ 1,770 Raytheon Company,
7.900% 03/01/03(-)................. 1,800
--------
AUTOMOTIVE -- 0.3%
1,200 Delphi Automotive Systems
Corporation,
6.125% 05/01/04.................... 1,145
--------
BEVERAGES -- 0.2%
1,035 Pepsi Bottling Holdings, Inc.,
5.375% 02/17/04(-)................. 987
--------
BROADCASTING AND CABLE -- 1.3%
1,150 British Sky Broadcasting Group plc,
6.875% 02/23/09.................... 998
1,750 Clear Channel Communications, Inc.,
7.875% 06/15/05.................... 1,785
1,200 Cox Radio, Inc.,
6.250% 05/15/03.................... 1,172
1,500 USA Networks, Inc.,
6.750% 11/15/05.................... 1,459
--------
5,414
--------
CHEMICALS -- SPECIALTY -- 0.4%
1,500 Praxair, Inc.,
6.750% 03/01/03.................... 1,487
--------
COMMERCIAL BANKING -- 0.7%
1,425 Chase Manhattan Corporation,
5.750% 04/15/04.................... 1,369
1,600 First Union Corporation,
7.550% 08/18/05.................... 1,620
--------
2,989
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
COMMERCIAL SERVICES -- 0.4%
$ 1,650 Comdisco, Inc.,
9.500% 08/15/03.................... $ 1,662
260 Xerox Capital Trust I, Gtd. Notes,
8.000% 02/01/27.................... 186
--------
1,848
--------
COMPUTERS AND OFFICE EQUIPMENT -- 0.3%
1,200 Compaq Computer Corporation,
7.450% 08/01/02.................... 1,205
--------
CONGLOMERATES -- 0.2%
1,000 USA Waste Services Inc.,
7.000% 07/15/28.................... 819
--------
CONSUMER CREDIT AND MORTGAGES -- 0.4%
1,725 Capital One Bank,
8.250% 06/15/05(++)................ 1,751
--------
DIVERSIFIED MANUFACTURING -- 0.3%
1,200 Tyco International Group SA,
7.000% 06/15/28.................... 1,059
--------
ELECTRIC POWER -- NON NUCLEAR -- 0.3%
1,300 Consumers Energy Company,
6.200% 05/01/03.................... 1,237
135 SCANA Corporation,
6.050% 01/13/03.................... 132
--------
1,369
--------
ENERGY -- MISCELLANEOUS -- 0.6%
800 PDV America Inc., Gtd. Sr. Notes,
7.875% 08/01/03.................... 768
1,650 USX Corporation,
6.650% 02/01/06.................... 1,599
--------
2,367
--------
FINANCE -- MISCELLANEOUS -- 3.6%
1,400 Case Credit Corporation,
6.125% 02/15/03.................... 1,295
1,800 Caterpillar Financial Services
Corporation,
6.875% 08/01/04.................... 1,780
1,050 Crown Cork & Seal Financial plc,
6.750% 12/15/03.................... 940
1,695 Finova Capital Corporation,
7.250% 11/08/04.................... 1,277
1,500 Ford Motor Credit Company,
7.600% 08/01/05.................... 1,617
1,060 General Motors Acceptance
Corporation,
6.150% 04/05/07.................... 991
1,680 Heller Financial, Inc.,
6.000% 03/19/04.................... 1,617
1,725 Household Finance Corporation,
8.000% 05/09/05.................... 1,782
1,200 Newcourt Credit Group Inc.,
6.875% 02/16/05.................... 1,185
1,250 Paine Webber Group, Inc.,
6.375% 05/15/04.................... 1,220
1,600 Washington Mutual, Inc.,
7.500% 08/15/06.................... 1,603
--------
15,307
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
FOOD AND DRUG STORES -- 0.7%
$ 1,500 Nabisco Inc.,
6.125% 02/01/33.................... $ 1,438
1,700 Safeway Inc., Sr. Notes,
7.250% 09/15/04.................... 1,697
--------
3,135
--------
HEALTH SERVICES -- 0.1%
215 HCA The Healthcare Corporation,
8.750% 09/01/10.................... 220
--------
HEAVY MACHINERY -- 0.3%
1,500 Thermo Electron Corporation,
7.625% 10/30/08.................... 1,428
--------
HOUSING AND FURNISHING -- 0.3%
1,350 Hanson Overseas B.V.,
7.375% 01/15/03.................... 1,349
--------
INSURANCE -- 0.4%
1,675 American General Finance Corporation,
7.450% 01/15/05.................... 1,692
--------
INTEGRATED OIL -- 0.4%
1,500 Occidental Petroleum Corporation, Sr.
Notes,
7.650% 02/15/06.................... 1,520
--------
INVESTMENT SERVICES -- 1.4%
1,650 Bear Stearns Companies, Inc.,
7.800% 08/15/07.................... 1,670
1,300 Lehman Brothers Holdings Inc.,
6.625% 04/01/04.................... 1,274
1,500 MCN Investment Corporation,
6.890% 01/15/02.................... 1,492
1,300 Salomon Smith Barney Holdings, Inc.,
6.250% 05/15/03.................... 1,280
--------
5,716
--------
NATURAL GAS PIPELINES -- 0.8%
1,815 KN Energy, Inc.,
6.450% 03/01/03.................... 1,782
1,700 Williams Companies, Inc.,
6.500% 08/01/06.................... 1,631
--------
3,413
--------
PHARMACEUTICALS -- 0.3%
1,500 Pharmacia Corporation,
6.600% 12/01/28.................... 1,335
--------
TELECOMMUNICATIONS SERVICES -- 0.7%
1,650 AirTouch Communications, Inc.,
6.350% 06/01/05.................... 1,598
1,400 MCI Worldcom, Inc.,
6.400% 08/15/05.................... 1,363
75 Sprint Capital Corporation,
5.875% 11/15/28.................... 65
--------
3,026
--------
TOTAL CORPORATE BONDS AND NOTES
(Cost $63,290)..................... 62,381
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
FOREIGN BONDS AND NOTES -- 1.0%
$ 2,275 AT&T Canada Inc.,
8.680%** 06/15/08(++).............. $ 1,855
1,000 Banco Latinoamericano,
7.200% 05/28/02(-)(++)............. 983
1,463 Pemex Finance Ltd.,
5.720% 11/15/03.................... 1,429
70 Tyco International Group SA,
6.875% 01/15/29.................... 61
--------
TOTAL FOREIGN BONDS AND NOTES
(Cost $4,403)...................... 4,328
--------
MORTGAGE-BACKED SECURITIES -- 20.0%
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- 7.9%
750 Commercial Mortgage Acceptance
Corporation, Series 1999-C1, Class
A2,
7.030% 05/15/09.................... 743
1,239 Criimi Mae CMBS Corporation, Series
1998-1, Class A1,
5.697% 10/20/01(-)................. 1,217
1,880 CS First Boston Mortgage Securities
Corporation, Series 1998-C1, Class
A1B,
6.480% 05/17/08(++)................ 1,806
2,735 DLJ Commercial Mortgage Corporation,
Series 1998-CG1, Class A1B,
6.410% 05/10/08(++)................ 2,623
2,600 DLJ Commercial Mortgage Corporation,
Series 1999-CG1, Class A1B,
6.460% 01/10/09(++)................ 2,493
1,000 DLJ Commercial Mortgage Corporation,
Series 2000-CF1, Class A1B,
7.620% 05/10/10.................... 1,027
2,300 First Union National Bank Commercial
Mortgage, Series 1999-C4, Class A2,
7.390% 11/15/09.................... 2,333
2,650 GMAC Commercial Mortgage Securities
Inc., Series 1999-C1, Class A2,
6.175% 05/15/33(++)................ 2,485
2,600 GMAC Commercial Mortgage Securities
Inc., Series 1999-C2, Class A2,
6.945% 09/15/33(++)................ 2,561
6,596 JP Morgan Commercial Mortgage Finance
Corporation, Series 1997-C4, Class
X, Interest only,
1.290%** 12/26/28.................. 364
2,750 Mortgage Capital Funding, Inc.,
Series 1998-MC2, Class A2,
6.423% 05/18/08(++)................ 2,629
2,050 Nomura Asset Securities Corporation,
Series 1998-D6, Class A1B,
6.590% 03/17/28(++)................ 1,990
2,000 PNC Mortgage Acceptance Corporation,
Series 1999-CM1, Class A1B,
7.330% 10/10/09.................... 2,018
1,750 Prudential Securities Secured
Financing Corporation, Series
1999-C2, Class A2,
7.193% 04/15/09.................... 1,753
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
COMMERCIAL MORTGAGE-BACKED
SECURITIES -- (CONTINUED)
$ 2,715 Prudential Securities Secured
Financing Corporation, Series
1999-NRF1, Class A2,
6.480% 01/15/09(++)................ $ 2,601
1,715 Salomon Brothers Mortgage Securities,
Series 2000-C1, Class A2,
7.520% 12/18/09.................... 1,748
1,600 Salomon Brothers Mortgage Securities,
Series 2000-C2, Class A2,
7.455% 04/18/10.................... 1,623
168 Salomon Brothers Mortgage Securities,
Series 2000-NL1, Class A1,
6.601% 04/15/08(-)................. 165
42,911 Vendee Mortgage Trust, Series 1998-1,
Class 2, IO,
.453%(--) 09/15/27(++)............. 748
46,495 Vendee Mortgage Trust, Series 1998-3,
Class 1, IO,
.314%(--) 03/15/29(++)............. 608
--------
33,535
--------
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) CERTIFICATES -- 1.9%
64 8.000% 01/01/04...................... 65
400 6.500% 04/01/09...................... 397
1,554 6.500% 07/01/10...................... 1,533
2,909 6.500% 06/01/14...................... 2,853
7 10.500% 04/01/19..................... 8
3,070 7.000% 10/01/29...................... 3,006
--------
7,862
--------
FEDERAL HOUSING AUTHORITY
(FHA) CERTIFICATES -- 0.5%
275 7.000% 01/15/27...................... 271
593 6.750% 01/01/40...................... 558
419 7.000% 01/01/40...................... 400
287 6.850% 02/01/40...................... 271
640 6.530% 10/01/40...................... 592
--------
2,092
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) CERTIFICATES -- 7.5%
191 6.500% 01/01/06...................... 188
174 6.500% 10/01/10...................... 172
440 7.500% 10/01/11...................... 444
1,974 6.500% 02/01/13...................... 1,941
430 10.000% 09/01/18..................... 460
5,081 6.500% 12/01/27(++).................. 4,883
2,574 7.000% 05/01/28...................... 2,524
2,459 7.000% 08/01/28(++).................. 2,415
180 6.000% 02/01/29...................... 168
691 6.500% 02/01/29...................... 663
3,174 7.000% 10/01/29(++).................. 3,110
6,493 8.000% 11/01/29(++).................. 6,583
7,794 6.500% 05/01/30...................... 7,487
529 7.354%(--) 08/01/36.................. 544
--------
31,582
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA)
CERTIFICATES -- 1.8%
$ 802 6.750% 09/15/01...................... $ 759
410 6.600% 11/15/01...................... 383
15 10.000% 02/15/16..................... 16
124 9.000% 10/15/19...................... 129
97 9.000% 11/15/19...................... 101
468 9.000% 12/15/19...................... 489
151 9.000% 01/15/20...................... 157
1,934 8.000% 07/15/27(++).................. 1,969
336 8.000% 09/15/27...................... 343
192 7.000% 11/15/27...................... 189
90 8.000% 04/15/28...................... 91
2,592 8.000% 06/15/28(++).................. 2,639
305 6.550% 03/15/40...................... 285
--------
7,550
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II
(GNMA) CERTIFICATES -- 0.4%
494 6.650% 01/15/34...................... 469
1,193 7.375% 10/15/34...................... 1,187
--------
1,656
--------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $85,189)................... 84,277
--------
U.S. TREASURY OBLIGATIONS -- 1.4%
U.S. TREASURY STRIPS -- 1.4%
1,250 Interest only 05/15/20............... 381
14,885 Principal only 11/15/21.............. 4,154
6,000 Principal only 02/15/27.............. 1,259
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,483)...................... 5,794
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.0%+
(Cost $11)
11 Nations Cash Reserves#.............. $ 11
--------
TOTAL INVESTMENTS
(Cost $356,206*).......... 99.9% 420,326
--------
OTHER ASSETS AND
LIABILITIES (NET)......... 0.1%
Receivable for investment securities
sold.............................. $ 2,140
Receivable for Fund shares sold..... 415
Dividends receivable................ 205
Interest receivable................. 1,585
Receivable for variation margin..... 36
Variation margin/due to broker...... (28)
Payable for Fund shares redeemed.... (709)
Investment advisory fee payable..... (228)
Administration fee payable.......... (81)
Shareholder servicing and
distribution
fees payable......................
(162)
Due to custodian.................... (98)
Payable for investment securities
purchased......................... (2,373)
Accrued Trustees' fees and
expenses.......................... (16)
Accrued expenses and other
liabilities....................... (115)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................. 571
--------
NET ASSETS.................. 100.0% $420,897
========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................ $ 669
Accumulated net realized gain on
investments sold and futures
contracts......................... 12,478
Net unrealized appreciation of
investments and futures
contracts......................... 63,936
Paid-in capital..................... 343,814
--------
NET ASSETS.......................... $420,897
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS FUNDS
Nations Asset Allocation Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
----------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($17,934,129 / 754,634 shares
outstanding)...................... $23.77
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($277,103,861 / 11,663,078
shares outstanding)............... $23.76
======
Maximum sales charge................ 5.75%
Maximum offering price per share.... $25.21
INVESTOR B SHARES:
Net asset value and offering price
per share(+) ($123,134,728 /
5,207,504 shares outstanding)..... $23.65
======
INVESTOR C SHARES:
Net asset value and offering price
per share(+) ($2,723,922 / 115,060
shares outstanding)............... $23.67
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $64,120 on
investment securities was comprised of gross appreciation of $76,921 and
gross depreciation of $12,801 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $356,206.
** Rate represents annualized yield at date of purchase.
(-) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(--) Variable rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(++) All or a portion of security segregated as collateral for futures
contracts.
+ Amount represents less than 0.1%.
++ Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
ABBREVIATIONS:
ADR -- American Depositary Receipt
IO -- Interest Only
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS FUNDS
Nations Equity Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.7%
AEROSPACE AND DEFENSE -- 1.1%
172,900 Honeywell International Inc. ........... $ 6,160
--------
AUTOMOTIVE -- 1.6%
217,000 Genuine Parts Company................... 4,137
87,000 Johnson Controls Inc. .................. 4,627
--------
8,764
--------
BEVERAGES -- 1.3%
126,000 Coca-Cola Company....................... 6,946
--------
CHEMICALS -- BASIC -- 1.1%
144,000 E.I. duPont de Nemours and Company...... 5,967
--------
COMMERCIAL BANKING -- 4.1%
298,666 Citigroup Inc. ......................... 16,147
40,000 J.P. Morgan & Company Inc. ............. 6,535
--------
22,682
--------
COMPUTER SERVICES -- 1.2%
102,000 Automatic Data Processing Inc. ......... 6,821
--------
COMPUTERS AND OFFICE EQUIPMENT -- 9.2%
122,000 EMC Corporation......................... 12,093
90,000 Hewlett-Packard Company................. 8,730
111,000 International Business Machines
Corporation........................... 12,487
134,000 Pitney Bowes, Inc. ..................... 5,285
105,000 Sun Microsystems, Inc. ................. 12,258
--------
50,853
--------
CONSUMER CREDIT AND MORTGAGES -- 2.7%
135,000 American Express Company................ 8,201
176,000 MBNA Corporation........................ 6,776
--------
14,977
--------
DEPARTMENT AND DISCOUNT STORES -- 2.6%
302,000 Wal-Mart Stores, Inc. .................. 14,534
--------
DIVERSIFIED ELECTRONICS -- 0.7%
157,000 Hubbell Incorporated.................... 3,935
--------
DIVERSIFIED MANUFACTURING -- 7.7%
85,000 Eastman Kodak Company................... 3,474
159,000 Fortune Brands Inc. .................... 4,214
435,000 General Electric Company................ 25,093
174,000 Gillette Company........................ 5,372
66,000 Procter & Gamble Company................ 4,422
--------
42,575
--------
ELECTRIC POWER -- NON NUCLEAR -- 6.4%
138,000 Consolidated Edison, Inc. .............. 4,709
161,000 Dominion Resources, Inc. ............... 9,348
70,000 Duke Energy Corporation................. 6,003
151,000 FPL Group Inc. ......................... 9,928
182,000 TECO Energy, Inc. ...................... 5,233
--------
35,221
--------
FINANCE -- MISCELLANEOUS -- 1.4%
138,000 Freddie Mac............................. 7,461
--------
FOOD PRODUCTS -- 1.6%
191,000 ConAgra Inc. ........................... 3,832
128,000 H.J. Heinz Company...................... 4,744
--------
8,576
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
HEAVY MACHINERY -- 1.7%
123,000 Caterpillar Inc. ....................... $ 4,151
93,000 Illinois Tool Works, Inc. .............. 5,197
--------
9,348
--------
INSURANCE -- 2.6%
152,000 American International Group, Inc. ..... 14,545
--------
INTEGRATED OIL -- 7.3%
73,000 Anadarko Petroleum Corporation.......... 4,852
74,000 BP Amoco plc, ADR....................... 3,922
79,000 Chevron Corporation..................... 6,735
208,000 Exxon Mobil Corporation................. 18,537
122,700 Texaco Inc. ............................ 6,442
--------
40,488
--------
INVESTMENT SERVICES -- 2.7%
102,000 Merrill Lynch & Company Inc. ........... 6,732
91,000 Morgan Stanley Dean Witter & Company.... 8,321
--------
15,053
--------
MEDICAL DEVICES AND SUPPLIES -- 4.3%
178,000 Abbott Laboratories..................... 8,466
89,000 Guidant Corporation(!).................. 6,291
94,000 Johnson & Johnson....................... 8,830
--------
23,587
--------
METALS AND MINING -- 1.1%
66,000 Minnesota Mining & Manufacturing
Company............................... 6,014
--------
NATURAL GAS DISTRIBUTION -- 1.4%
85,000 Enron Corporation....................... 7,448
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT --4.6%
350,200 Cisco Systems, Inc. .................... 19,349
100,000 Nortel Networks Corporation............. 5,956
--------
25,305
--------
PHARMACEUTICALS -- 6.4%
100,000 Bristol-Myers Squibb Company............ 5,713
171,000 Merck & Company, Inc. .................. 12,729
373,450 Pfizer Inc. ............................ 16,781
--------
35,223
--------
PUBLISHING AND ADVERTISING -- 0.9%
81,000 McGraw-Hill Companies, Inc. ............ 5,149
--------
RAILROADS, TRUCKING AND SHIPPING -- 0.7%
69,000 United Parcel Service, Inc. ............ 3,890
--------
REAL ESTATE -- 3.4%
98,000 Avalonbay Communities, Inc. ............ 4,673
168,000 Equity Office Properties Trust.......... 5,218
99,000 Equity Residential Properties Trust..... 4,752
168,000 Simon Property Group, Inc. ............. 3,938
--------
18,581
--------
REAL ESTATE INVESTMENT TRUSTS
(REITS) -- 0.8%
108,000 Boston Properties Inc. ................. 4,637
--------
SEMICONDUCTORS -- 3.6%
374,000 Intel Corporation....................... 15,544
88,000 Texas Instruments Inc. ................. 4,153
--------
19,697
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS FUNDS
Nations Equity Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
SOFTWARE -- 5.1%
240,000 Microsoft Corporation(!)................ $ 14,475
172,000 Oracle Corporation...................... 13,545
--------
28,020
--------
SPECIALTY STORES -- 1.0%
120,000 Lowe's Companies Inc. .................. 5,385
--------
TELECOMMUNICATIONS SERVICES -- 4.0%
227,000 SBC Communications Inc. ................ 11,350
221,000 Verizon Communications.................. 10,705
--------
22,055
--------
TOBACCO -- 2.6%
280,000 Philip Morris Companies Inc. ........... 8,243
269,000 UST Inc. ............................... 6,153
--------
14,396
--------
UTILITIES -- MISCELLANEOUS -- 2.8%
177,000 American Water Works Company, Inc. ..... 4,879
217,000 AT&T Corporation........................ 6,374
123,000 NICOR Inc. ............................. 4,451
--------
15,704
--------
TOTAL COMMON STOCKS
(Cost $445,127)....................... 549,997
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $1,638)
1,638 Nations Cash Reserves#................... 1,638
--------
TOTAL INVESTMENTS
(Cost $446,765*)............... 100.0% 551,635
--------
OTHER ASSETS AND
LIABILITIES (NET).............. 0.0%
Receivable for investment securities
sold................................... $ 563
Receivable for Fund shares sold.......... 734
Dividends receivable..................... 1,006
Interest receivable...................... 34
Payable for Fund shares redeemed......... (1,860)
Investment advisory fee payable.......... (259)
Administration fee payable............... (108)
Shareholder servicing and distribution
fees payable........................... (61)
Due to custodian......................... (4)
Accrued Directors' fees and expenses..... (20)
Accrued expenses and other liabilities... (72)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).................................. (47)
--------
NET ASSETS....................... 100.0% $551,588
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
--------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income...... $ 338
Accumulated net realized gain on
investments sold....................... 24,523
Net unrealized appreciation of
investments............................ 104,869
Paid-in capital.......................... 421,858
--------
NET ASSETS............................... $551,588
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($458,237,256 / 41,091,624 shares
outstanding)........................... $11.15
======
INVESTOR A SHARES:
Net asset value and redemption price per
share ($29,049,783 / 2,611,497 shares
outstanding)........................... $11.12
======
Maximum sales charge..................... 5.75%
Maximum offering price per share......... $11.80
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($60,707,291 / 5,463,600
shares outstanding).................... $11.11
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($3,593,179 / 319,304 shares
outstanding)........................... $11.25
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $104,870 on
investment securities was comprised of gross appreciation of $122,619 and
gross depreciation of $17,749 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $446,765.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS FUNDS
Nations Value Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.8%
AEROSPACE AND DEFENSE -- 1.7%
652,000 Honeywell International Inc. ........ $ 23,228
----------
AUTOMOTIVE -- 1.3%
345,000 Johnson Controls Inc. ............... 18,350
----------
COMMERCIAL BANKING -- 8.9%
497,000 Chase Manhattan Corporation.......... 22,955
742,000 Citigroup Inc. ...................... 40,114
186,000 J.P. Morgan & Company Inc. .......... 30,388
668,000 Wells Fargo Company.................. 30,686
----------
124,143
----------
COMPUTERS AND OFFICE EQUIPMENT -- 3.7%
166,000 Hewlett-Packard Company.............. 16,102
311,000 International Business Machines
Corporation........................ 34,988
----------
51,090
----------
CONSUMER CREDIT AND MORTGAGES -- 4.1%
520,000 American Express Company............. 31,590
635,000 MBNA Corporation..................... 24,448
----------
56,038
----------
DIVERSIFIED MANUFACTURING -- 1.1%
216,000 Procter & Gamble Company............. 14,472
----------
ELECTRIC POWER -- NON NUCLEAR -- 8.9%
450,000 Ameren Corporation................... 18,844
661,000 Consolidated Edison, Inc. ........... 22,557
356,000 Dominion Resources, Inc. ............ 20,670
344,000 FPL Group Inc. ...................... 22,618
1,293,000 TECO Energy, Inc. ................... 37,173
----------
121,862
----------
ELECTRICAL EQUIPMENT -- 1.7%
342,000 Emerson Electric Company............. 22,914
----------
FINANCE -- MISCELLANEOUS -- 4.6%
861,000 Associates First Capital
Corporation........................ 32,718
555,100 Freddie Mac.......................... 30,010
----------
62,728
----------
FOOD PRODUCTS -- 4.3%
1,023,000 ConAgra Inc. ........................ 20,524
562,000 H.J. Heinz Company................... 20,829
716,000 Kellogg Company...................... 17,318
----------
58,671
----------
HEAVY MACHINERY -- 1.1%
4,400 Caterpillar Inc. .................... 149
447,000 Parker Hannifin Corporation.......... 15,086
----------
15,235
----------
HOUSING AND FURNISHING -- 1.1%
651,000 Stanley Works........................ 15,014
----------
INSURANCE -- 6.9%
548,000 American International Group,
Inc. .............................. 52,436
222,000 CIGNA Corporation.................... 23,177
311,000 MGIC Investment Corporation.......... 19,010
----------
94,623
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
INTEGRATED OIL -- 9.2%
293,000 Anadarko Petroleum Corporation....... $ 19,472
325,000 BP Amoco plc, ADR.................... 17,225
46,000 Chevron Corporation.................. 3,922
759,000 Conoco, Inc. ........................ 20,445
576,000 Exxon Mobil Corporation.............. 51,335
431,000 Unocal Corporation................... 15,274
----------
127,673
----------
INVESTMENT SERVICES -- 4.2%
384,000 Merrill Lynch & Company Inc. ........ 25,344
355,000 Morgan Stanley Dean Witter &
Company............................ 32,460
----------
57,804
----------
MEDICAL DEVICES AND SUPPLIES -- 4.0%
641,000 Abbott Laboratories.................. 30,488
284,000 Cardinal Health, Inc. ............... 25,045
----------
55,533
----------
METALS AND MINING -- 1.8%
266,000 Minnesota Mining & Manufacturing
Company............................ 24,239
----------
NATURAL GAS DISTRIBUTION -- 1.7%
324,000 El Paso Energy Corporation........... 19,966
31,825 Enron Corporation.................... 2,789
----------
22,755
----------
PHARMACEUTICALS -- 2.5%
600,000 Bristol-Myers Squibb Company......... 34,275
----------
PUBLISHING AND ADVERTISING -- 1.4%
308,000 Dow Jones & Company Inc. ............ 18,634
----------
RAILROADS, TRUCKING AND SHIPPING -- 1.7%
520,000 FedEx Corporation(!)................. 23,057
----------
RESTAURANTS -- 0.5%
218,000 McDonald's Corporation............... 6,581
----------
SEMICONDUCTORS -- 1.6%
247,000 Intergrated Device Technology,
Inc.(!)............................ 22,354
----------
SOFTWARE -- 2.8%
487,000 Electronic Data Systems
Corporation........................ 20,211
450,000 First Data Corporation............... 17,578
----------
37,789
----------
TELECOMMUNICATIONS SERVICES -- 3.6%
560,000 SBC Communications Inc. ............. 28,000
449,000 Verizon Communications............... 21,748
----------
49,748
----------
TOBACCO -- 3.7%
978,000 Philip Morris Companies Inc. ........ 28,790
976,000 UST Inc. ............................ 22,326
----------
51,116
----------
UTILITIES -- MISCELLANEOUS -- 6.7%
740,000 American Water Works Company,
Inc. .............................. 20,396
1,106,000 AT&T Corporation..................... 32,489
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS FUNDS
Nations Value Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
UTILITIES -- MISCELLANEOUS --
(CONTINUED)
484,000 NICOR Inc. .......................... $ 17,515
755,000 Sprint Corporation (FON Group)....... 22,131
----------
92,531
----------
TOTAL COMMON STOCKS
(Cost $1,055,404).................. 1,302,457
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 3.1%
(Cost $42,329)
42,329 Nations Cash Reserves#............... 42,329
----------
TOTAL INVESTMENTS
(Cost $1,097,733*)......... 97.9% 1,344,786
----------
OTHER ASSETS AND
LIABILITIES (NET).......... 2.1%
Cash................................. $ 6,108
Receivable for investment securities
sold............................... 78,077
Receivable for Fund shares sold...... 463
Dividends receivable................. 2,412
Interest receivable.................. 16
Collateral on securities loaned...... (42,329)
Line of credit payable............... (6,147)
Payable for Fund shares redeemed..... (8,707)
Investment advisory fee payable...... (743)
Administration fee payable........... (263)
Shareholder servicing and
distribution fees payable.......... (114)
Accrued Trustees' fees and
expenses........................... (89)
Accrued expenses and other
liabilities........................ (199)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. 28,485
----------
NET ASSETS................... 100.0% $1,373,271
==========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income.................. $ (231)
Accumulated net realized gain on
investments sold................... 163,726
Net unrealized appreciation of
investments........................ 247,053
Paid-in capital...................... 962,723
----------
NET ASSETS........................... $1,373,271
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($1,176,252,410 / 82,021,879 shares
outstanding)....................... $14.34
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($79,126,043 / 5,520,925
shares outstanding)................ $14.33
======
Maximum sales charge................. 5.75%
Maximum offering price per share..... $15.21
INVESTOR B SHARES:
Net asset value and offering price
per share(+)
($108,290,633 / 7,690,030 shares
outstanding)....................... $14.08
======
INVESTOR C SHARES:
Net asset value and offering price
per share(+) ($9,601,858 / 682,285
shares outstanding)................ $14.07
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $247,053 on
investment securities was comprised of gross appreciation of $267,458 and
gross depreciation of $20,405 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $1,097,733.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. Represents cash collateral received from securities lending activity
(Note 8).
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS FUNDS
Nations Marsico Growth & Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 100.1%
Investment in Nations Master
Investment Trust, Marsico Growth &
Income Master Portfolio*............ $685,255
--------
TOTAL INVESTMENTS............. 100.1% 685,255
--------
OTHER ASSETS AND LIABILITIES
(NET)....................... (0.1)%
Administration fee payable............ $ (74)
Shareholder servicing and distribution
fees payable........................ (346)
Accrued Trustees' fees and expenses... (22)
Accrued expenses and other
liabilities......................... (114)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (556)
--------
NET ASSETS.................... 100.0% $684,699
========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income................... $ (2,202)
Accumulated net realized loss on
investments sold.................... (36,844)
Net unrealized appreciation of
investments......................... 157,771
Paid-in capital....................... 565,974
--------
NET ASSETS............................ $684,699
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($110,347,507 / 5,505,825 shares
outstanding)........................ $20.04
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($208,787,355 / 10,430,093
shares outstanding)................. $20.02
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $21.24
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($324,700,890 / 16,517,691
shares outstanding)................. $19.66
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($40,862,966 / 2,076,142
shares outstanding)................. $19.68
======
</TABLE>
---------------
* The financial statements of the Nations Marsico Growth & Income Master
Portfolio, including its portfolio of investments, are included elsewhere
within this report and should be read in conjunction with the Nations
Marsico Growth & Income Fund's financial statements.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS FUNDS
Nations Blue Chip Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 100.1%
Investment in Nations Master
Investment Trust, Blue Chip Master
Portfolio*.......................... $966,294
--------
TOTAL INVESTMENTS............. 100.1% 966,294
--------
OTHER ASSETS AND
LIABILITIES (NET)........... (0.1)%
Receivable for Fund shares sold....... $ 3
Administration fee payable............ (146)
Shareholder servicing and distribution
fees payable........................ (265)
Accrued Trustees' fees and expenses... (17)
Accrued expenses and other
liabilities......................... (91)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (516)
--------
NET ASSETS.................... 100.0% $965,778
========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income................... $ (520)
Accumulated net realized gain on
investments sold.................... 19,389
Net unrealized appreciation of
investments......................... 256,105
Paid-in capital....................... 690,804
--------
NET ASSETS............................ $965,778
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($37,538,274 / 1,084,439 shares
outstanding)........................ $34.61
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($815,715,104 / 23,663,601
shares outstanding)................. $34.47
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $36.57
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($92,718,368 / 2,733,275
shares outstanding)................. $33.92
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($19,806,004 / 585,533 shares
outstanding)........................ $33.82
======
</TABLE>
---------------
* The financial statements of the Nations Blue Chip Master Portfolio,
including its portfolio of investments, are included elsewhere within this
report and should be read in conjunction with the Nations Blue Chip Fund's
financial statements.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS FUNDS
Nations Strategic Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.9%
AEROSPACE AND DEFENSE -- 0.5%
181,700 Honeywell International Inc. ........ $ 6,473
----------
BEVERAGES -- 2.2%
377,050 Anheuser-Busch Companies, Inc. ...... 15,954
94,900 Coca-Cola Company.................... 5,231
155,000 PepsiCo, Inc. ....................... 7,130
----------
28,315
----------
BROADCASTING AND CABLE -- 4.5%
251,075 Clear Channel Communications,
Inc.(!)............................ 14,186
356,000 Comcast Corporation, Class A(!)...... 14,574
207,300 Time Warner Inc. .................... 16,221
236,000 Viacom Inc., Class B(!).............. 13,806
----------
58,787
----------
COMMERCIAL BANKING -- 4.2%
330,000 Bank of New York Inc. ............... 18,501
685,996 Citigroup Inc. ...................... 37,086
----------
55,587
----------
COMMERCIAL SERVICES -- 1.0%
183,900 Omnicom Group Inc. .................. 13,413
----------
COMPUTER SERVICES -- 2.1%
227,340 America Online Inc. ................. 12,220
228,000 Automatic Data Processing Inc. ...... 15,247
----------
27,467
----------
COMPUTERS AND OFFICE EQUIPMENT -- 9.1%
435,450 EMC Corporation...................... 43,163
237,175 International Business Machines
Corporation........................ 26,682
250,000 Palm, Inc.(!)........................ 13,234
322,600 Sun Microsystems, Inc. .............. 37,664
----------
120,743
----------
CONGLOMERATES -- 4.1%
479,475 Tyco International Ltd. ............. 24,873
421,600 United Technologies Corporation...... 29,196
----------
54,069
----------
CONSUMER CREDIT AND MORTGAGES -- 4.0%
266,540 Fannie Mae........................... 19,058
480,000 MBNA Corporation..................... 18,480
115,000 Providian Financial Corporation...... 14,605
----------
52,143
----------
CONSUMER SERVICES -- 1.6%
265,525 Costco Wholesale Corporation......... 9,277
325,100 Estee Lauder Companies Inc. ......... 11,907
----------
21,184
----------
DEPARTMENT AND DISCOUNT STORES -- 2.7%
426,000 Target Corporation................... 10,916
515,125 Wal-Mart Stores, Inc. ............... 24,791
----------
35,707
----------
DIVERSIFIED MANUFACTURING -- 4.5%
1,022,625 General Electric Company............. 58,993
----------
ELECTRIC POWER -- NON NUCLEAR -- 1.2%
232,150 AES Corporation...................... 15,902
----------
ELECTRICAL EQUIPMENT -- 1.0%
201,375 Emerson Electric Company............. 13,492
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
FINANCE -- MISCELLANEOUS -- 0.5%
178,900 Concord EFS, Inc.(!)................. $ 6,354
----------
INSURANCE -- 2.6%
354,562 American International Group,
Inc. .............................. 33,927
----------
INTEGRATED OIL -- 2.6%
118,400 BP Amoco plc, ADR.................... 6,275
316,700 Exxon Mobil Corporation.............. 28,226
----------
34,501
----------
INVESTMENT SERVICES -- 4.6%
194,037 Charles Schwab Corporation........... 6,888
371,300 Merrill Lynch & Company Inc. ........ 24,506
197,075 Morgan Stanley Dean Witter &
Company............................ 18,020
120,850 Northern Trust Corporation........... 10,741
----------
60,155
----------
MEDICAL DEVICES AND SUPPLIES -- 4.9%
216,800 Abbott Laboratories.................. 10,312
168,800 Baxter International Inc. ........... 13,472
277,225 Guidant Corporation(!)............... 19,597
137,000 Johnson & Johnson.................... 12,869
150,160 Medtronic, Inc. ..................... 7,780
----------
64,030
----------
NATURAL GAS DISTRIBUTION -- 1.5%
271,225 Coastal Corporation.................. 20,105
----------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 6.8%
70,400 CIENA Corporation.................... 8,646
768,050 Cisco Systems, Inc. ................. 42,434
274,000 Lucent Technologies, Inc. ........... 8,374
311,200 Nokia Corporation, Class A, ADR...... 12,390
294,000 Nortel Networks Corporation.......... 17,511
----------
89,355
----------
OILFIELD SERVICES -- 0.8%
120,900 Schlumberger Ltd. ................... 9,952
----------
PHARMACEUTICALS -- 9.0%
320,650 Amgen Inc. .......................... 22,389
164,825 Bristol-Myers Squibb Company......... 9,416
169,425 Eli Lilly and Company................ 13,745
217,550 Merck & Company, Inc. ............... 16,194
1,033,475 Pfizer Inc. ......................... 46,441
205,475 Schering-Plough Corporation.......... 9,555
----------
117,740
----------
PUBLISHING AND ADVERTISING -- 1.1%
227,125 McGraw-Hill Companies, Inc. ......... 14,437
----------
SEMICONDUCTORS -- 6.4%
752,250 Intel Corporation.................... 31,265
211,550 Linear Technology Corporation........ 13,698
373,000 Motorola, Inc. ...................... 10,537
209,100 Texas Instruments Inc. .............. 9,867
218,300 Xilinx, Inc. ........................ 18,692
----------
84,059
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS FUNDS
Nations Strategic Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
SOFTWARE -- 6.5%
744,075 Microsoft Corporation(!)............. $ 44,877
235,770 Oracle Corporation................... 18,567
46,600 Phone.com, Inc. ..................... 5,295
120,000 VERITAS Software Corporation......... 17,040
----------
85,779
----------
SPECIALTY STORES -- 3.1%
132,500 Best Buy Company, Inc.(!)............ 8,430
127,540 Circuit City Stores - Circuit City
Group.............................. 2,933
325,400 Home Depot Inc. ..................... 17,267
175,350 Lowe's Companies Inc. ............... 7,869
104,825 Walgreen Company..................... 3,977
----------
40,476
----------
TELECOMMUNICATIONS SERVICES -- 5.8%
395,175 Nextel Communications, Inc. ......... 18,474
111,950 QUALCOMM Inc. ....................... 7,976
512,600 Qwest Communications
International, Inc.(!)............. 24,637
142,000 Sprint Corporation (PCS Group)....... 4,979
304,000 Western Wireless Corporation(!)...... 10,830
313,675 WorldCom, Inc.(!).................... 9,528
----------
76,424
----------
TOTAL COMMON STOCKS
(Cost $1,008,914).................. 1,299,569
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.7%
(Cost $35,638)
35,638 Nations Cash Reserves#................ 35,638
----------
TOTAL INVESTMENTS
(Cost $1,044,552*)......... 101.6% 1,335,207
----------
OTHER ASSETS AND
LIABILITIES (NET).... ..... (1.6)%
Cash.................................. $ 1,874
Receivable for investment securities
sold................................ 33,751
Receivable for Fund shares sold....... 3,950
Dividends receivable.................. 325
Interest receivable................... 178
Collateral on securities loaned....... (19,484)
Payable for Fund shares redeemed...... (1,717)
Investment advisory fee payable....... (716)
Administration fee payable............ (253)
Shareholder servicing and distribution
fees payable........................ (11)
Payable for investment securities
purchased........................... (38,484)
Accrued Trustees' fees and expenses... (17)
Accrued expenses and other
liabilities......................... (98)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (20,702)
----------
NET ASSETS................... 100.0% $1,314,505
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
--------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income................... $ (1,373)
Accumulated net realized loss on
investments sold.................... (24,746)
Net unrealized appreciation of
investments......................... 290,655
Paid-in capital....................... 1,049,969
----------
NET ASSETS............................ $1,314,505
==========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($1,290,918,980 / 80,439,550 shares
outstanding)........................ $16.05
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($13,376,558 / 834,488
shares outstanding)................. $16.03
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $17.01
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($7,891,907 / 496,501 shares
outstanding)........................ $15.89
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($2,317,682 / 145,695 shares
outstanding)........................ $15.91
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $290,655 on
investment securities was comprised of gross appreciation of $335,047 and
gross depreciation of $44,392 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $1,044,552.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $19,484.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS FUNDS
Nations Capital Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.8%
BEVERAGES -- 2.2%
260,000 Anheuser-Busch Companies, Inc. ......... $ 11,002
67,000 Coca-Cola Company....................... 3,693
105,000 PepsiCo, Inc. .......................... 4,830
--------
19,525
--------
BROADCASTING AND CABLE -- 4.6%
160,000 Clear Channel Communications, Inc.(!)... 9,040
250,000 Comcast Corporation, Class A(!)......... 10,234
135,445 Time Warner Inc. ....................... 10,599
180,625 Viacom Inc., Class B(!)................. 10,567
--------
40,440
--------
COMMERCIAL BANKING -- 4.4%
230,000 Bank of New York Inc. .................. 12,894
470,933 Citigroup Inc. ......................... 25,460
--------
38,354
--------
COMMERCIAL SERVICES -- 0.6%
76,100 Omnicom Group Inc. ..................... 5,551
--------
COMPUTER SERVICES -- 2.9%
274,160 America Online Inc. .................... 14,736
164,000 Automatic Data Processing Inc. ......... 10,968
--------
25,704
--------
COMPUTERS AND OFFICE EQUIPMENT -- 11.3%
368,780 EMC Corporation......................... 36,554
166,470 International Business Machines
Corporation........................... 18,728
200,000 Palm, Inc.(!)........................... 10,588
280,525 Sun Microsystems, Inc. ................. 32,751
--------
98,621
--------
CONGLOMERATES -- 4.5%
392,160 Tyco International Ltd. ................ 20,343
273,615 United Technologies Corporation......... 18,948
--------
39,291
--------
CONSUMER CREDIT AND MORTGAGES -- 5.0%
184,315 Fannie Mae.............................. 13,179
528,590 MBNA Corporation........................ 20,350
77,500 Providian Financial Corporation......... 9,843
--------
43,372
--------
CONSUMER SERVICES -- 1.4%
125,000 Costco Wholesale Corporation............ 4,367
212,800 Estee Lauder Companies Inc. ............ 7,794
--------
12,161
--------
DEPARTMENT AND DISCOUNT STORES -- 2.8%
288,810 Target Corporation...................... 7,401
355,175 Wal-Mart Stores, Inc. .................. 17,093
--------
24,494
--------
DIVERSIFIED MANUFACTURING -- 4.9%
741,270 General Electric Company................ 42,762
--------
ELECTRIC POWER -- NON NUCLEAR -- 1.3%
161,000 AES Corporation......................... 11,029
--------
ELECTRICAL EQUIPMENT -- 1.1%
144,000 Emerson Electric Company................ 9,648
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
FINANCE -- MISCELLANEOUS -- 2.3%
226,170 Capital One Financial Corporation....... $ 15,846
120,700 Concord EFS, Inc.(!).................... 4,287
--------
20,133
--------
INSURANCE -- 2.0%
187,143 American International Group, Inc. ..... 17,907
--------
INTEGRATED OIL -- 2.0%
193,900 Exxon Mobil Corporation................. 17,281
--------
INVESTMENT SERVICES -- 3.2%
131,000 Charles Schwab Corporation.............. 4,651
209,200 Merrill Lynch & Company Inc. ........... 13,806
106,800 Morgan Stanley Dean Witter & Company.... 9,766
--------
28,223
--------
MEDICAL DEVICES AND SUPPLIES -- 4.9%
140,250 Baxter International Inc. .............. 11,194
182,205 Guidant Corporation(!).................. 12,880
367,825 Medtronic, Inc. ........................ 19,057
--------
43,131
--------
NATURAL GAS DISTRIBUTION -- 0.5%
65,000.. Coastal Corporation..................... 4,818
--------
NETWORKING AND TELECOMMUNICATIONS EQUIPMENT --6.9%
554,870 Cisco Systems, Inc. .................... 30,656
343,300 Nokia Corporation, Class A, ADR......... 13,668
264,110 Nortel Networks Corporation............. 15,731
--------
60,055
--------
OILFIELD SERVICES -- 2.1%
246,955 Halliburton Company..................... 12,086
77,185 Schlumberger Ltd. ...................... 6,353
--------
18,439
--------
PHARMACEUTICALS -- 8.6%
135,000 Amgen Inc. ............................. 9,427
111,575 Bristol-Myers Squibb Company............ 6,374
113,000 Eli Lilly and Company................... 9,167
162,665 Merck & Company, Inc. .................. 12,108
756,691 Pfizer Inc. ............................ 34,003
94,840 Schering-Plough Corporation............. 4,410
--------
75,489
--------
PUBLISHING AND ADVERTISING -- 1.1%
155,925 McGraw-Hill Companies, Inc. ............ 9,911
--------
SEMICONDUCTORS -- 4.4%
506,420 Intel Corporation....................... 21,049
267,654 Motorola, Inc. ......................... 7,561
111,700 Xilinx, Inc. ........................... 9,564
--------
38,174
--------
SOFTWARE -- 6.7%
487,730 Microsoft Corporation(!)................ 29,416
217,560 Oracle Corporation...................... 17,133
85,000 VERITAS Software Corporation............ 12,070
--------
58,619
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS FUNDS
Nations Capital Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
SPECIALTY STORES -- 2.1%
71,010 Best Buy Company, Inc.(!)............... $ 4,518
188,065 Circuit City Stores - Circuit City
Group................................. 4,325
118,035 Home Depot Inc. ........................ 6,263
80,840 Lowe's Companies Inc. .................. 3,628
--------
18,734
--------
TELECOMMUNICATIONS SERVICES -- 6.0%
377,200 Nextel Communications, Inc. ............ 17,634
352,000 Qwest Communications International,
Inc.(!)............................... 16,918
104,000 Sprint Corporation (PCS Group).......... 3,647
207,500 Western Wireless Corporation(!)......... 7,392
227,555 WorldCom, Inc.(!)....................... 6,912
--------
52,503
--------
TOTAL COMMON STOCKS
(Cost $526,218)....................... 874,369
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 4.2%
(Cost $37,024)
37,024 Nations Cash Reserves#................... 37,024
--------
TOTAL INVESTMENTS
(Cost $563,242*).............. 104.0% 911,393
--------
OTHER ASSETS AND
LIABILITIES (NET)............. (4.0)%
Cash..................................... $ 24
Receivable for investment securities
sold................................... 32,743
Receivable for Fund shares sold.......... 818
Dividends receivable..................... 310
Interest receivable...................... 33
Collateral on securities loaned.......... (34,209)
Payable for Fund shares redeemed......... (341)
Investment advisory fee payable.......... (482)
Administration fee payable............... (171)
Shareholder servicing and distribution
fees payable........................... (75)
Payable for investment securities
purchased.............................. (33,749)
Accrued Trustees' fees and expenses...... (57)
Accrued expenses and other liabilities... (126)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).................................. (35,282)
--------
NET ASSETS...................... 100.0% $876,111
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Distributions in excess of net investment
income................................. $ (2,235)
Accumulated net realized gain on
investments sold....................... 118,110
Net unrealized appreciation of
investments............................ 348,151
Paid-in capital.......................... 412,085
--------
NET ASSETS............................... $876,111
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($746,098,335 / 55,516,461 shares
outstanding)........................... $13.44
========
INVESTOR A SHARES:
Net asset value and redemption price per
share ($55,498,826 / 4,184,342 shares
outstanding)........................... $13.26
========
Maximum sales charge..................... 5.75%
Maximum offering price per share......... $14.07
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($69,608,677 / 5,611,667 shares
outstanding)........................... $12.40
========
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($4,905,425 / 391,872 shares
outstanding)........................... $12.52
========
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $348,151 on
investment securities was comprised of gross appreciation of $365,157 and
gross depreciation of $17,006 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $563,242.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $34,209.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS FUNDS
Nations Aggressive Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.1%
BEVERAGES -- 1.2%
44,700 Coca-Cola Company ...................... $ 2,464
31,975 PepsiCo, Inc. .......................... 1,471
--------
3,935
--------
BROADCASTING AND CABLE -- 0.9%
52,050 Viacom Inc., Class B(!)................. 3,045
--------
COMMERCIAL BANKING -- 0.3%
16,933 Citigroup Inc. ......................... 915
--------
COMPUTER SERVICES -- 6.3%
127,125 America Online Inc. .................... 6,833
37,475 I2 Technologies Inc.(!)................. 7,010
32,675 VeriSign, Inc. ......................... 6,619
--------
20,462
--------
COMPUTERS AND OFFICE EQUIPMENT -- 8.2%
99,750 EMC Corporation......................... 9,887
56,250 International Business Machines
Corporation............................. 6,328
35,625 Palm, Inc.(!)........................... 1,886
70,550 Sun Microsystems, Inc. ................. 8,237
--------
26,338
--------
CONGLOMERATES -- 1.6%
43,075 Tyco International Ltd. ................ 2,235
42,175 United Technologies Corporation......... 2,920
--------
5,155
--------
CONSUMER CREDIT AND MORTGAGES -- 1.6%
134,600 MBNA Corporation........................ 5,182
--------
CONSUMER SERVICES -- 0.6%
54,575 Estee Lauder Companies Inc. ............ 1,999
--------
DEPARTMENT AND DISCOUNT STORES -- 2.3%
65,400 Target Corporation...................... 1,676
118,600 Wal-Mart Stores, Inc. .................. 5,708
--------
7,384
--------
DIVERSIFIED MANUFACTURING -- 4.8%
266,725 General Electric Company................ 15,387
--------
ELECTRIC POWER -- NON NUCLEAR -- 0.5%
14,700 AES Corporation......................... 1,007
6,850 Calpine Corporation..................... 715
--------
1,722
--------
FINANCE -- MISCELLANEOUS -- 0.5%
47,600 Concord EFS, Inc.(!).................... 1,691
--------
FOOD PRODUCTS -- 0.8%
32,325 Quaker Oats Company..................... 2,558
--------
HEAVY MACHINERY -- 0.6%
35,325 Illinois Tool Works, Inc. .............. 1,974
--------
INSURANCE -- 1.1%
37,762 American International Group, Inc. ..... 3,613
--------
INVESTMENT SERVICES -- 2.2%
58,575 Charles Schwab Corporation.............. 2,079
56,475 Morgan Stanley Dean Witter & Company.... 5,164
--------
7,243
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
MEDICAL DEVICES AND SUPPLIES -- 6.3%
35,175 Cardinal Health, Inc. .................. $ 3,102
88,700 Guidant Corporation(!).................. 6,270
94,425 Medtronic, Inc. ........................ 4,892
51,750 PE Corp-PE Biosystems Group............. 6,029
--------
20,293
--------
NATURAL GAS DISTRIBUTION -- 2.8%
82,425 Coastal Corporation..................... 6,110
32,300 Enron Corporation....................... 2,830
--------
8,940
--------
NETWORKING AND TELECOMMUNICATIONS EQUIPMENT --
14.2%
116,050 3Com Corporation(!)..................... 2,227
42,275 Ariba, Inc. ............................ 6,057
30,300 CIENA Corporation....................... 3,721
220,800 Cisco Systems, Inc. .................... 12,200
47,275 Commerce One, Inc. ..................... 3,711
39,650 Comverse Technology, Inc. .............. 4,282
97,125 Lucent Technologies, Inc. .............. 2,968
84,400 Nokia Corporation, Class A, ADR......... 3,360
85,900 Nortel Networks Corporation............. 5,116
17,500 Sycamore Networks, Inc. ................ 1,890
--------
45,532
--------
PHARMACEUTICALS -- 10.3%
91,325 Allergan, Inc. ......................... 7,711
50,025 Eli Lilly and Company................... 4,058
37,375 Genentech, Inc. ........................ 6,940
45,550 Millennium Pharmaceuticals, Inc. ....... 6,653
177,250 Pfizer Inc. ............................ 7,966
--------
33,328
--------
SEMICONDUCTORS -- 9.0%
134,350 Altera Corporation...................... 6,415
75,425 Analog Devices, Inc. ................... 6,227
200,175 Intel Corporation....................... 8,320
152,875 Motorola, Inc. ......................... 4,319
77,875 Texas Instruments Inc. ................. 3,675
--------
28,956
--------
SOFTWARE -- 15.9%
30,750 BEA Systems, Inc.(!).................... 2,395
10,850 Check Point Software Technologies....... 1,709
60,600 E. Piphany, Inc.(!)..................... 4,670
72,600 Electronic Arts Inc. ................... 3,585
108,800 First Data Corporation.................. 4,250
45,800 Mercury Interactive Corporation......... 7,179
189,625 Microsoft Corporation(!)................ 11,436
100,100 Oracle Corporation...................... 7,883
34,600 Phone.com, Inc. ........................ 3,931
28,225 VERITAS Software Corporation............ 4,008
--------
51,046
--------
SPECIALTY STORES -- 3.6%
81,875 Best Buy Company, Inc.(!)............... 5,209
105,450 Home Depot Inc. ........................ 5,596
15,250 Lowe's Companies Inc. .................. 684
--------
11,489
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS FUNDS
Nations Aggressive Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS SERVICES -- 3.5%
102,725 Global Crossing, Ltd.(!)................ $ 3,185
59,783 Qwest Communications International,
Inc.(!)................................. 2,873
26,275 Voicestream Wireless Corporation(!)..... 3,050
62,525 Western Wireless Corporation(!)......... 2,227
--------
11,335
--------
TOTAL COMMON STOCKS
(Cost $251,406)....................... 319,522
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 8.3%
(Cost $26,928)
26,928 Nations Cash Reserves#.................. 26,928
--------
TOTAL INVESTMENTS
(Cost $278,334*)............. 107.4% 346,450
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (7.4)%
Cash.................................... $ 3
Receivable for investment securities
sold.................................. 12,140
Receivable for Fund shares sold......... 3
Dividends receivable.................... 111
Interest receivable..................... 20
Collateral on securities loaned......... (22,949)
Payable for Fund shares redeemed........ (547)
Investment advisory fee payable......... (180)
Administration fee payable.............. (64)
Shareholder servicing and distribution
fees payable.......................... (39)
Payable for investment securities
purchased............................. (12,207)
Accrued Trustees' fees and expenses..... (28)
Accrued expenses and other
liabilities........................... (43)
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. (23,780)
--------
NET ASSETS..................... 100.0% $322,670
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income..................... $ (1,081)
Accumulated net realized gain on
investments sold...................... 56,794
Net unrealized appreciation of
investments........................... 68,116
Paid-in capital......................... 198,841
--------
NET ASSETS.............................. $322,670
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($245,349,465 / 11,811,044 shares
outstanding).......................... $20.77
========
INVESTOR A SHARES:
Net asset value and redemption price per
share ($42,657,858 / 2,072,849 shares
outstanding).......................... $20.58
========
Maximum sales charge.................... 5.75%
Maximum offering price per share........ $21.83
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($33,529,569 / 1,712,318 shares
outstanding).......................... $19.58
========
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($1,133,093 / 56,748 shares
outstanding).......................... $19.97
========
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $68,116 on
investment securities was comprised of gross appreciation of $83,221 and
gross depreciation of $15,105 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $278,334.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $22,949.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS FUNDS
Nations Marsico Focused Equities Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 100.1%
Investment in Nations Master
Investment Trust, Marsico Focused
Equities Master Portfolio*......... $2,591,431
----------
TOTAL INVESTMENTS........... 100.1% 2,591,431
----------
OTHER ASSETS AND
LIABILITIES (NET)......... (0.1)%
Administration fee payable........... $ (279)
Shareholder servicing and
distribution fees payable.......... (1,275)
Accrued Trustees' fees and
expenses........................... (23)
Accrued expenses and other
liabilities........................ (344)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. (1,921)
----------
NET ASSETS.................. 100.0% $2,589,510
==========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income.................. $ (9,256)
Accumulated net realized loss on
investments sold and foreign
currencies and net other assets.... (121,636)
Net unrealized appreciation of
investments........................ 534,994
Paid-in capital...................... 2,185,408
----------
NET ASSETS........................... $2,589,510
==========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($481,999,761 / 22,487,271 shares
outstanding)....................... $21.43
------
------
INVESTOR A SHARES:
Net asset value and redemption price
per share
($766,609,804 / 35,860,946 shares
outstanding)....................... $21.38
------
------
Maximum sales charge................. 5.75%
Maximum offering price per share..... $22.68
INVESTOR B SHARES:
Net asset value and offering price
per share(+)
($1,056,425,834 / 50,257,058 shares
outstanding)....................... $21.02
------
------
INVESTOR C SHARES:
Net asset value and offering price
per share(+)
($284,474,295 / 13,491,886 shares
outstanding)....................... $21.08
------
------
</TABLE>
---------------
* The financial statements of the Nations Marsico Focused Equities Master
Portfolio, including its portfolio of investments, are included elsewhere
within this report and should be read in conjunction with the Nations
Marsico Focused Equities Fund's financial statements.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS FUNDS
Nations MidCap Growth Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.7%
BROADCASTING AND CABLE -- 6.3%
78,000 Clear Channel Communications, Inc.(!)... $ 4,407
55,000 Entravision Communications
Corporation(!).......................... 956
136,700 Hispanic Broadcasting Corporation....... 3,811
299,146 Metro-Goldwyn-Mayer, Inc.(!)............ 7,179
28,740 Radio One, Inc., Class A(!)............. 239
112,500 Radio One, Inc., Class D(!)............. 795
160,000 Univision Communications, Inc. ......... 5,979
--------
23,366
--------
BUILDING MATERIALS -- 0.4%
40,000 Lamar Advertising Company(!)............ 1,515
--------
COMMERCIAL BANKING -- 3.7%
241,500 Charter One Financial, Inc. ............ 5,886
110,000 City National Corporation............... 4,249
114,000 SouthTrust Corporation.................. 3,584
--------
13,719
--------
COMPUTER SERVICES -- 4.7%
173,500 CSG Systems International, Inc.(!)...... 5,032
41,250 McData Corporation(!)................... 5,069
175,000 Sungard Data Systems, Inc.(!)........... 7,492
--------
17,593
--------
COMPUTERS AND OFFICE EQUIPMENT -- 2.3%
100,000 Solectron Corporation................... 4,613
105,000 Symbol Technologies, Inc. .............. 3,773
--------
8,386
--------
CONGLOMERATES -- 0.7%
100,000 Pentair, Inc. .......................... 2,675
--------
CONSUMER CREDIT AND MORTGAGES -- 2.0%
58,000 Providian Financial Corporation......... 7,366
--------
DIVERSIFIED ELECTRONICS -- 0.8%
100,000 ECI Telecom Ltd. ....................... 3,063
--------
DIVERSIFIED MANUFACTURING -- 0.7%
69,000 Martin Marietta Materials, Inc. ........ 2,641
--------
ELECTRIC POWER -- NON NUCLEAR -- 6.8%
180,000 AES Corporation......................... 12,330
124,600 Calpine Corporation..................... 13,005
--------
25,335
--------
ENERGY -- MISCELLANEOUS -- 0.2%
27,300 Southern Energy, Inc.(!)................ 857
--------
FINANCE -- MISCELLANEOUS -- 2.4%
253,000 Concord EFS, Inc.(!).................... 8,985
--------
HEALTH SERVICES -- 2.2%
397,500 Health Management Associates, Inc.,
Class A(!)............................ 8,273
--------
INVESTMENT SERVICES -- 5.9%
150,998 Legg Mason Inc. ........................ 8,777
80,000 Northern Trust Corporation.............. 7,110
189,750 Waddell & Reed Financial, Inc. ......... 5,882
--------
21,769
--------
LODGING AND RECREATION -- 0.6%
60,000 International Speedway Corporation...... 2,340
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
MEDICAL DEVICES AND SUPPLIES -- 1.3%
111,200 Stryker Corporation..................... $ 4,775
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 6.7%
170,000 ADC Telecommunications, Inc. ........... 4,571
117,500 Comverse Technology, Inc. .............. 12,691
16,500 Corvis Corporation(!)................... 1,007
16,500 Cosine Communications, Inc.(!).......... 917
11,000 Exfo Electro-Optical Engineering
Inc.(!)................................. 479
4,100 Inrange Technologies Corporation(!)..... 217
45,000 Sycamore Networks, Inc. ................ 4,860
--------
24,742
--------
OILFIELD SERVICES -- 6.9%
115,000 BJ Services Company(!).................. 7,028
74,000 ENSCO International Inc. ............... 2,831
141,500 Global Marine Inc.(!)................... 4,369
55,000 Grant Prideco Inc.(!)................... 1,207
65,000 Smith International, Inc.(!)............ 5,302
112,000 Weatherford International, Inc.(!)...... 4,816
--------
25,553
--------
PHARMACEUTICALS -- 7.2%
37,000 Affymetrix, Inc. ....................... 1,845
46,000 Alkermes, Inc.(!)....................... 1,777
60,000 Biogen, Inc.(!)......................... 3,660
35,000 Caliper Technologies Corporation(!)..... 2,028
60,000 MedImmune Inc. ......................... 4,635
50,800 Millennium Pharmaceuticals, Inc. ....... 7,420
82,600 Watson Pharmaceutical, Inc.(!).......... 5,359
--------
26,724
--------
SEMICONDUCTORS -- 8.3%
61,000 Altera Corporation...................... 2,913
102,000 Linear Technology Corporation........... 6,605
95,000 Maxim Integrated Products............... 7,641
83,000 Vitesse Semiconductor Corporation....... 7,381
70,500 Xilinx, Inc. ........................... 6,037
--------
30,577
--------
SOFTWARE -- 11.3%
13,700 AvantGo, Inc.(!)........................ 274
116,500 BMC Software, Inc.(!)................... 2,228
83,000 Check Point Software Technologies....... 13,072
175,000 Citrix Systems, Inc. ................... 3,511
156,700 Convergys Corporation(!)................ 6,091
44,500 E. Piphany, Inc.(!)..................... 3,429
73,000 Intuit Inc. ............................ 4,161
62,500 Jack Henry & Associates................. 2,711
31,000 Phone.com, Inc. ........................ 3,522
42,000 Quest Software, Inc. ................... 2,609
--------
41,608
--------
SPECIALTY STORES -- 4.5%
296,000 Bed Bath & Beyond, Inc. ................ 7,220
65,500 Best Buy Company, Inc.(!)............... 4,167
86,500 Staples Inc.(!)......................... 1,227
140,000 The Men's Wearhouse Inc.(!)............. 3,964
--------
16,578
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS FUNDS
Nations MidCap Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS SERVICES -- 7.3%
106,925 Allegiance Telecom, Inc.(!)............. $ 3,983
96,000 American Power Conversion
Corporation(!).......................... 1,842
146,200 Broadwing Inc.(!)....................... 3,737
30,000 Next Level Communication, Inc.(!)....... 1,984
165,000 Nextlink Communications, Inc.(!)........ 5,806
70,000 Research In Motion Ltd.(!).............. 6,900
62,000 Time Warner Telecom, Inc.(!)............ 2,995
--------
27,247
--------
UNIT INVESTMENT TRUST -- 1.5%
57,000 S&P Mid-Cap 400 Depositary Receipts..... 5,600
--------
TOTAL COMMON STOCKS
(Cost $192,218)....................... 351,287
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 22.9%
(Cost $84,750)
84,750 Nations Cash Reserves#.................. 84,750
--------
TOTAL INVESTMENTS
(Cost $276,968*)............. 117.6% 436,037
--------
OTHER ASSETS AND
LIABILITIES (NET)............ (17.6)%
Cash.................................... $ 4
Receivable for Fund shares sold......... 2,290
Dividends receivable.................... 44
Interest receivable..................... 131
Collateral on securities loaned......... (62,963)
Investment advisory fee payable......... (195)
Administration fee payable.............. (69)
Shareholder servicing and distribution
fees payable.......................... (53)
Payable for investment securities
purchased............................. (4,356)
Accrued Trustees' fees and expenses..... (37)
Accrued expenses and other
liabilities........................... (50)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. (65,254)
--------
NET ASSETS..................... 100.0% $370,783
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income..................... $ (929)
Accumulated net realized gain on
investments sold...................... 40,387
Net unrealized appreciation of
investments........................... 159,069
Paid-in capital......................... 172,256
--------
NET ASSETS.............................. $370,783
========
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($288,307,149 / 13,150,488 shares
outstanding).......................... $21.92
======
INVESTOR A SHARES:
Net asset value and redemption price per
share ($22,515,225 / 1,057,078 shares
outstanding).......................... $21.30
======
Maximum sales charge.................... 5.75%
Maximum offering price per share........ $22.60
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($56,336,159 / 2,865,241 shares
outstanding).......................... $19.66
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($3,624,126 / 183,369 shares
outstanding).......................... $19.76
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $159,069 on
investment securities was comprised of gross appreciation of $170,059 and
gross depreciation of $10,990 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $276,968.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $62,963.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS FUNDS
Nations Marsico 21st Century Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.0%
BROADCASTING AND CABLE -- 2.6%
55,006 Clear Channel Communications, Inc.(!)... $ 3,108
--------
COMMERCIAL BANKING -- 3.5%
76,312 Citigroup Inc. ......................... 4,126
--------
COMPUTER SERVICES -- 4.3%
50,885 America Online Inc. .................... 2,735
36,588 Automatic Data Processing Inc. ......... 2,447
--------
5,182
--------
COMPUTERS AND OFFICE EQUIPMENT -- 7.4%
64,476 EMC Corporation......................... 6,391
20,476 Sun Microsystems, Inc. ................. 2,391
--------
8,782
--------
ELECTRIC POWER -- NON NUCLEAR -- 2.5%
28,589 Calpine Corporation..................... 2,984
--------
ELECTRICAL EQUIPMENT -- 3.1%
10,000 Cabot Microelectronics Corporation(!)... 480
43,925 Celestica Inc.(!)....................... 3,042
6,000 TTM Technologies, Inc.(!)............... 141
--------
3,663
--------
ENERGY -- MISCELLANEOUS -- 2.0%
5,000 Proton Energy Systems, Inc.(!).......... 143
70,000 Southern Energy, Inc.(!)................ 2,196
--------
2,339
--------
HEALTH SERVICES -- 0.9%
33,171 Large Scale Biology Corporation(!)...... 1,086
--------
INVESTMENT SERVICES -- 2.2%
40,614 Merrill Lynch & Company Inc. ........... 2,681
--------
MEDICAL DEVICES AND SUPPLIES -- 8.5%
50,000 Cytyc Corporation(!).................... 2,156
58,861 Guidant Corporation(!).................. 4,161
70,423 Intermune Pharmaceuticals, Inc.(!)...... 3,820
--------
10,137
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 13.5%
13,357 Avici Systems Inc.(!)................... 1,271
18,002 Corning Inc. ........................... 5,346
43,271 Floware Wireless Systems Ltd.(!)........ 1,078
55,000 Liberate Technologies, Inc.(!).......... 1,592
68,171 Nortel Networks Corporation............. 4,060
15,000 Vitria Technology, Inc.(!).............. 699
34,598 Wireless Facilities Inc.(!)............. 1,996
--------
16,042
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
OILFIELD SERVICES -- 4.7%
50,093 Cooper Cameron Corporation(!)........... 3,692
35,266 Halliburton Company..................... 1,726
3,227 Teekay Shipping Corporation(!).......... 151
--------
5,569
--------
PHARMACEUTICALS -- 5.1%
15,000 Genentech, Inc. ........................ 2,784
22,309 Merck & Company, Inc. .................. 1,661
35,505 Pfizer Inc. ............................ 1,596
--------
6,041
--------
SEMICONDUCTORS -- 18.8%
65,000 Advanced Micro Devices.................. $ 1,536
56,161 Agilent Technologies Inc.(!)............ 2,748
56,000 Analog Devices, Inc. ................... 4,624
25,152 Applied Micro Circuits Corporation(!)... 5,209
86,300 Parthus Technologies plc(!)............. 344
13,089 PMC - Sierra, Inc. ..................... 2,817
35,000 QLogic Corporation...................... 3,080
25,000 Xilinx, Inc. ........................... 2,141
--------
22,499
--------
SOFTWARE -- 8.0%
12,698 Adobe Systems Inc. ..................... 1,971
41,896 Exodus Communications, Inc.(!).......... 2,069
17,237 Interwoven, Inc. ....................... 1,949
27,363 Oracle Corporation...................... 2,154
7,908 Software.Com, Inc.(!)................... 1,435
--------
9,578
--------
SPECIALTY STORES -- 2.1%
46,444 Home Depot Inc. ........................ 2,464
--------
TELECOMMUNICATIONS SERVICES -- 4.8%
13,910 Level 3 Communications, Inc.(!)......... 1,073
43,613 QUALCOMM Inc. .......................... 3,108
44,761 Sprint Corporation (PCS Group).......... 1,569
--------
5,750
--------
TOTAL COMMON STOCKS
(Cost $103,874)....................... 112,031
--------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 11.1%
(Cost $13,298)
FEDERAL HOME LOAN BANK (FHLB) -- 11.1%
$13,300 Discount note 10/02/00.................. 13,295
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS FUNDS
Nations Marsico 21st Century Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.0%+
(Cost $42)
42 Nations Cash Reserves#................ $ 42
--------
TOTAL INVESTMENTS 105.1% 125,368
(Cost $117,214*)...........
--------
OTHER ASSETS AND (5.1)%
LIABILITIES (NET)..........
Cash.................................. $ 636
Receivable for investment securities 13,568
sold................................
Dividends receivable.................. 14
Prepaid expenses...................... 13
Investment advisory fee payable....... (73)
Administration fee payable............ (22)
Shareholder servicing and distribution (75)
fees payable........................
Payable for investment securities (20,172)
purchased...........................
Accrued Trustees' fees and expenses... (4)
--------
TOTAL OTHER ASSETS AND LIABILITIES (6,115)
(NET)...............................
--------
NET ASSETS................... 100.0% $119,253
========
NET ASSETS CONSIST OF:
Distributions in excess of net $ (535)
investment income...................
Accumulated net realized loss on (2,192)
investments sold....................
Net unrealized appreciation of 8,153
investments.........................
Paid-in capital....................... 113,827
--------
NET ASSETS............................ $119,253
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($6,939,429 / 687,485
shares outstanding)................. $10.09
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($30,346,981 / 3,010,242
shares outstanding)................. $10.08
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $10.70
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($72,720,646 / 7,239,594
shares outstanding)................. $10.04
======
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($9,245,940 / 920,463 shares
outstanding)........................ $10.04
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $8,154 on
investment securities was comprised of gross appreciation of $13,590 and
gross depreciation of $5,436 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $117,214.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Amount represents less than 0.1%.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS FUNDS
Nations Small Company Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.3%
AIRLINES -- 1.2%
232,600 SkyWest, Inc. ....................... $ 11,921
----------
APPAREL AND TEXTILES -- 4.9%
214,900 Columbia Sportswear Company(!)....... 9,859
381,300 Kenneth Cole Productions, Inc. ...... 13,465
748,050 Quiksilver, Inc.(!).................. 14,399
629,800 Tefron Ltd.(!)....................... 7,400
98,800 Timberland Company, Class A.......... 4,051
----------
49,174
----------
BROADCASTING AND CABLE -- 1.0%
210,000 Entercom Communications
Corporation(!)....................... 6,287
310,650 Salem Communications Corporation(!).. 3,941
----------
10,228
----------
COMMERCIAL BANKING -- 3.1%
203,100 Boston Private Financial Holdings,
Inc.(!).............................. 3,351
441,000 City National Corporation............ 17,034
539,000 National Commerce Bancorp............ 10,746
----------
31,131
----------
COMMERCIAL SERVICES -- 4.2%
726,200 AHL Services, Inc.(!)................ 6,263
659,398 Encompass Services Corporation(!).... 5,358
322,000 Iron Mountain Incorporated(!)........ 11,915
850 Lante Corporation(!)................. 4
363,500 Luminant Worldwide Corporation(!).... 1,079
206,400 MedQuist Inc.(!)..................... 4,167
324,695 Nova Corporation(!).................. 5,560
772,400 SCB Computer Technology, Inc.(!)..... 502
144,600 The Profit Recovery Group
International, Inc.(!)............... 1,428
412,800 Trammell Crow Company(!)............. 6,192
----------
42,468
----------
COMPUTERS AND OFFICE EQUIPMENT -- 3.0%
481,912 Avocent Corporation(!)............... 26,566
65,900 Zebra Technologies Corporation(!).... 3,167
----------
29,733
----------
CONSUMER SERVICES -- 4.6%
372,200 Blue Rhino Corporation(!)............ 1,442
612,400 Career Education Corporation......... 27,252
422,000 ITT Educational Services, Inc.(!).... 11,447
76,200 Macrovision Corporation.............. 6,172
----------
46,313
----------
DEPARTMENT AND DISCOUNT STORES -- 0.3%
262,800 ShopKo Stores, Inc.(!)............... 2,727
----------
DIVERSIFIED ELECTRONICS -- 9.1%
653,000 Aeroflex, Inc. ...................... 31,752
288,850 Anaren Microwave, Inc. .............. 39,175
253,100 AstroPower, Inc.(!).................. 10,029
262,000 Camtek Ltd.(!)....................... 2,211
156,200 Dionex Corporation(!)................ 4,315
100,000 Sipex Corporation(!)................. 4,206
----------
91,688
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED MANUFACTURING -- 3.7%
642,000 Actuant Corporation, Class A(!)...... $ 2,528
209,911 Lennox International Inc. ........... 1,968
398,500 Plexus Corporation................... 28,094
603,300 Polymer Group, Inc. ................. 4,449
----------
37,039
----------
ELECTRICAL EQUIPMENT -- 1.4%
283,800 APW Limited(!)....................... 13,835
----------
ENERGY -- MISCELLANEOUS -- 1.8%
383,000 Kinder Morgan Energy Partners,
L.P. ................................ 18,145
8,700 Proton Energy Systems, Inc.(!)....... 249
----------
18,394
----------
FINANCE -- MISCELLANEOUS -- 2.2%
392,900 Affiliated Managers Group, Inc.(!)... 22,371
----------
HEALTH SERVICES -- 5.7%
153,800 Aspect Medical Systems, Inc.(!)...... 1,903
22,800 Lifepoint Hospitals, Inc.(!)......... 809
501,600 OrthAlliance, Inc.(!)................ 3,072
691,100 Orthodontic Centers of America(!).... 23,022
615,450 Province Healthcare Company.......... 24,581
823,600 US Oncology, Inc.(!)................. 3,732
----------
57,119
----------
HOUSING AND FURNISHING -- 1.4%
301,412 Ethan Allen Interiors, Inc. ......... 8,533
195,100 Kaufman & Broad Home Corporation..... 5,256
----------
13,789
----------
INSURANCE -- 1.7%
276,397 Delphi Financial Group Inc., Class
A.................................... 11,194
207,900 Triad Guaranty, Inc.(!).............. 6,185
----------
17,379
----------
LODGING AND RECREATION -- 0.8%
576,150 Station Casinos, Inc. ............... 8,210
----------
MEDICAL DEVICES AND SUPPLIES -- 1.6%
87,700 Ciphergen Biosystems, Inc.(!)........ 2,806
295,000 Cooper Companies Inc. ............... 10,436
69,200 Datascope Corporation................ 2,318
----------
15,560
----------
METALS AND MINING -- 0.6%
256,700 Mueller Industries Inc.(!)........... 5,760
----------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 12.2%
229,600 AudioCodes Ltd.(!)................... 19,544
8,500 Avici Systems Inc.(!)................ 809
247,100 Breezecom Ltd.(!).................... 8,139
815,300 C-COR Electronics.................... 12,484
8,400 Finisar Corporation.................. 406
140,700 Harmonic Lightwaves, Inc. ........... 3,377
1,017,100 P-Com, Inc.(!)....................... 6,738
315,000 Plantronics Inc. .................... 11,970
335,000 Proxim, Inc. ........................ 14,908
901,950 REMEC, Inc. ......................... 26,550
379,100 Spectrian Corporation(!)............. 5,876
121,000 Three-Five Systems, Inc. ............ 3,539
46,700 Tollgrade Communications, Inc. ...... 6,483
----------
120,823
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS FUNDS
Nations Small Company Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
OILFIELD SERVICES -- 2.8%
600,200 Marine Drilling Companies, Inc.(!)... $ 17,144
244,700 Precision Drilling Corporation(!).... 8,717
60,100 UTI Energy Corporation(!)............ 2,682
----------
28,543
----------
PHARMACEUTICALS -- 7.4%
415,600 Allos Therapeutics Inc.(!)........... 3,766
338,400 Alpharma Inc., Class A............... 20,686
132,800 Gemini Genomics plc(!)............... 1,909
54,800 Human Genome Sciences, Inc. ......... 9,487
491,247 Martek Biosciences Corporation(!).... 9,579
373,100 Shire Pharmaceuticals, ADR(!)........ 19,261
353,579 Vical, Inc.(!)....................... 9,149
----------
73,837
----------
RESTAURANTS -- 0.7%
252,700 Garden Fresh Restaurant
Corporation(!)....................... 2,953
195,000 Jack in the Box Inc.(!).............. 4,181
----------
7,134
----------
SEMICONDUCTORS -- 5.0%
278,600 Alpha Industries, Inc. .............. 9,490
72,000 Cymer, Inc.(!)....................... 2,210
153,800 Oak Technology, Inc.(!).............. 4,210
8,700 Omnivision Technologies, Inc.(!)..... 315
296,000 RF Micro Devices, Inc. .............. 9,472
462,800 Sawtek, Inc.(!)...................... 17,825
15,400 SDL, Inc. ........................... 4,763
27,600 Virata Corporation................... 1,825
----------
50,110
----------
SOFTWARE -- 6.0%
524,700 Dendrite International, Inc. ........ 14,068
328,865 Hyperion Solutions Corporation(!).... 8,509
8,600 OTG Software, Inc.(!)................ 352
105,300 Prosoft Private Placement(!)......... 1,501
211,400 ProsoftTraining.Com(!)............... 3,012
474,250 Rogue Wave Software(!)............... 2,549
453,200 Segue Software, Inc.(!).............. 3,739
76,700 Software.Com, Inc.(!)................ 13,916
452,500 TTI Team Telecom International
Ltd.(!).............................. 9,220
557,800 USinternetworking, Inc. ............. 3,722
----------
60,588
----------
SPECIALTY STORES -- 0.5%
342,000 Fossil, Inc.(!)...................... 4,553
----------
TELECOMMUNICATIONS SERVICES -- 5.5%
194,600 AirGate PCS, Inc.(!)................. 8,733
321,700 Gilat Communications Ltd.(!)......... 3,559
323,400 Gilat Satellite Networks Ltd.(!)..... 24,861
304,200 PNV.net, Inc.(!)..................... 304
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- (CONTINUED)
818,200 Spectrasite Holdings, Inc.(!)........ 15,188
107,900 Triton PCS Holdings, Inc., Class
A(!)................................. 2,967
----------
55,612
----------
UNIT INVESTMENT TRUST -- 1.9%
198,100 S&P Mid-Cap 400 Depositary
Receipts............................. $ 19,463
----------
TOTAL COMMON STOCKS
(Cost $634,133).................... 945,502
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 17.5%
(Cost $175,153)
175,153 Nations Cash Reserves#................ 175,153
----------
TOTAL INVESTMENTS
(Cost $809,286*)........... 111.8% 1,120,655
----------
OTHER ASSETS AND
LIABILITIES (NET).......... (11.8)%
Cash.................................. $ 29
Receivable for investment securities
sold................................ 21,832
Receivable for Fund shares sold....... 13,164
Dividends receivable.................. 192
Interest receivable................... 232
Collateral on securities loaned....... (133,643)
Payable for Fund shares redeemed...... (324)
Investment advisory fee payable....... (696)
Administration fee payable............ (190)
Shareholder servicing and distribution
fees payable........................ (63)
Payable for investment securities
purchased........................... (18,874)
Accrued Directors' fees and
expenses............................ (20)
Accrued expenses and other
liabilities......................... (71)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (118,432)
----------
NET ASSETS................... 100.0% $1,002,223
==========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income................... $ (2,626)
Accumulated net realized gain on
investments sold.................... 72,836
Net unrealized appreciation of
investments......................... 311,369
Paid-in capital....................... 620,644
----------
NET ASSETS............................ $1,002,223
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS FUNDS
Nations Small Company Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
--------------------------------------------------------------
<C> <S> <C> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($756,236,458 / 35,671,223 shares
outstanding)........................ $21.20
------
------
INVESTOR A SHARES:
Net asset value and redemption price
per share ($225,961,800 / 10,776,318
shares outstanding)................. $20.97
------
------
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $22.25
INVESTOR B SHARES:
Net asset value and offering price per
share(+) ($16,142,977 / 791,707
shares outstanding)................. $20.39
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share(+) ($3,881,242 / 187,859
shares outstanding)................. $20.66
------
------
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $311,369 on
investment securities was comprised of gross appreciation of $405,844 and
gross depreciation of $94,475 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $809,286.
(!) Non-income producing security.
(+) The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $133,643.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
[This page intentionally left blank]
41
<PAGE> 46
NATIONS FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
<CAPTION>
CONVERTIBLE BALANCED
SECURITIES ASSETS
----------------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $3, $3, $13,
$38, $119, $0 and $0, respectively)....................... $ 4,561 $ 615
Dividends allocated from Portfolio (Net of foreign
withholding taxes of $0, $0, $0, $0, $0, $11 and $51,
respectively)+............................................ -- --
Interest.................................................... 3,678 1,720
Interest allocated from Portfolio+.......................... -- --
Securities lending.......................................... -- 3
Expenses allocated from Portfolio+.......................... -- --
-------------- --------------
Total investment income................................. 8,239 2,338
-------------- --------------
EXPENSES:
Investment advisory fee..................................... 1,263 310
Administration fee.......................................... 447 110
Transfer agent fees......................................... 62 18
Custodian fees.............................................. 20 10
Legal and audit fees........................................ 34 32
Registration and filing fees................................ 30 19
Trustees'/Directors' fees and expenses...................... 8 8
Interest expense............................................ -- --
Printing expense............................................ 48 50
Other....................................................... 9 4
-------------- --------------
Subtotal................................................ 1,921 561
Shareholder servicing and distribution fees:
Investor A Shares......................................... 438 13
Investor B Shares......................................... 79 243
Investor C Shares......................................... 20 5
Seafirst Shares**......................................... -- --
-------------- --------------
Total expenses.......................................... 2,458 822
Fees waived by investment advisor, administrator and/or
distributor............................................... (11) (100)
Fees reduced by credits allowed by the custodian............ (7) --*
-------------- --------------
Net expenses............................................ 2,440 722
-------------- --------------
NET INVESTMENT INCOME/(LOSS)................................ 5,799 1,616
-------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions..................................... 22,723 916
Security transactions allocated from Portfolio+........... -- --
Futures contracts......................................... -- --
Foreign currency and net other assets..................... -- --
Foreign currency and net other assets allocated from
Portfolio+.............................................. -- --
-------------- --------------
Net realized gain/(loss) on investments..................... 22,723 916
-------------- --------------
Change in unrealized appreciation/(depreciation) of:
Securities (Note 10)...................................... (26,185) (466)
Securities allocated from Portfolio (Note 10)+............ -- --
Futures contracts......................................... -- --
-------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... (26,185) (466)
-------------- --------------
Net realized and unrealized gain/(loss) on investments...... (3,462) 450
-------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 2,337 $ 2,066
============== ==============
</TABLE>
---------------
* Amount represents less than $500.
** Seafirst Shares converted into Investor A Shares on June 23, 2000.
+ Allocated from Growth & Income Master Portfolio and Blue Chip Master
Portfolio, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
ASSET EQUITY GROWTH & BLUE
ALLOCATION INCOME VALUE INCOME CHIP
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,235 $ 5,472 $ 16,701 $ -- $ --
-- -- -- 1,362 4,742
6,015 358 413 -- --
-- -- -- 1,882 604
-- 1 118 -- --
-- -- -- (2,754) (3,473)
-------------- -------------- -------------- -------------- --------------
7,250 5,831 17,232 490 1,873
-------------- -------------- -------------- -------------- --------------
1,384 1,606 4,728 -- --
490 670 1,673 412 875
70 86 256 166 152
25 24 61 -- --
48 37 42 28 29
26 26 29 64 44
8 8 9 8 9
1 6 19 -- --
81 50 66 75 65
16 12 21 9 16
-------------- -------------- -------------- -------------- --------------
2,149 2,525 6,904 762 1,190
234 39 107 230 778
608 337 575 1,514 422
13 21 49 183 92
117 -- -- -- 265
-------------- -------------- -------------- -------------- --------------
3,121 2,922 7,635 2,689 2,747
(199) -- -- -- (283)
(5) (4) (13) -- --
-------------- -------------- -------------- -------------- --------------
2,917 2,918 7,622 2,689 2,464
-------------- -------------- -------------- -------------- --------------
4,333 2,913 9,610 (2,199) (591)
-------------- -------------- -------------- -------------- --------------
3,672 25,142 152,330 -- --
-- -- -- (33,810) 19,899
(20) -- -- -- --
-- -- -- -- --
-- -- -- -- --
-------------- -------------- -------------- -------------- --------------
3,652 25,142 152,330 (33,810) 19,899
-------------- -------------- -------------- -------------- --------------
(2,073) (42,011) (144,659) -- --
-- -- -- (3,689) (34,716)
(205) -- -- -- --
-------------- -------------- -------------- -------------- --------------
(2,278) (42,011) (144,659) (3,689) (34,716)
-------------- -------------- -------------- -------------- --------------
1,374 (16,869) 7,671 (37,499) (14,817)
-------------- -------------- -------------- -------------- --------------
$ 5,707 $ (13,956) $ 17,281 $ (39,698) $ (15,408)
============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
<CAPTION>
STRATEGIC CAPITAL
GROWTH GROWTH
----------------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $8, $0, $1,
$0, $3, $0 and $0, respectively).......................... $ 3,121 $ 2,161
Dividends allocated from Portfolio (Net of foreign
withholding taxes of $0, $0, $0, $74, $0, $0 and $0,
respectively)+............................................ -- --
Interest.................................................... 1,060 285
Interest allocated from Portfolio+.......................... -- --
Securities lending.......................................... 34 30
Expenses allocated from Portfolio+.......................... -- --
-------------- --------------
Total investment income................................. 4,215 2,476
-------------- --------------
EXPENSES:
Investment advisory fee..................................... 3,837 2,918
Administration fee.......................................... 1,358 1,032
Transfer agent fees......................................... 141 146
Custodian fees.............................................. 57 32
Legal and audit fees........................................ 39 38
Registration and filing fees................................ 45 21
Trustees'/Directors' fees and expenses...................... 8 9
Interest expense............................................ 1 6
Printing expense............................................ 35 40
Other....................................................... 18 15
-------------- --------------
Subtotal................................................ 5,539 4,257
Shareholder servicing and distribution fees:
Investor A Shares......................................... 11 71
Investor B Shares......................................... 31 359
Investor C Shares......................................... 10 24
-------------- --------------
Total expenses.......................................... 5,591 4,711
Fees waived by investment advisor, administrator and/or
distributor............................................... -- --
Fees reduced by credits allowed by the custodian............ (3) --*
-------------- --------------
Net expenses............................................ 5,588 4,711
-------------- --------------
NET INVESTMENT INCOME/(LOSS)................................ (1,373) (2,235)
-------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions..................................... (24,745) 119,573
Security transactions allocated from Portfolio+........... -- --
Futures contracts......................................... -- --
Foreign currency and net other assets..................... -- --
Foreign currency and net other assets allocated from
Portfolio+.............................................. -- --
-------------- --------------
Net realized gain/(loss) on investments..................... (24,745) 119,573
-------------- --------------
Change in unrealized appreciation/(depreciation) of:
Securities (Note 10)...................................... (20,128) (157,424)
Securities allocated from Portfolio (Note 10)+............ -- --
Futures contracts......................................... -- --
-------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... (20,128) (157,424)
-------------- --------------
Net realized and unrealized gain/(loss) on investments...... (44,873) (37,851)
-------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ (46,246) $ (40,086)
============== ==============
</TABLE>
---------------
* Amount represents less than $500.
+ Allocated from Focused Equities Master Portfolio.
(a) 21st Century commenced operations on April 10, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE FOCUSED MIDCAP 21ST SMALL
GROWTH EQUITIES GROWTH CENTURY(a) COMPANY
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 845 $ -- $ 358 $ 103 $ 1,130
-- 4,599 -- -- --
174 -- 602 288 1,755
-- 5,813 -- -- --
22 -- 41 -- 126
-- (9,988) -- -- --
-------------- -------------- -------------- -------------- --------------
1,041 424 1,001 391 3,011
-------------- -------------- -------------- -------------- --------------
1,222 -- 1,089 333 4,123
432 1,508 386 105 1,054
69 646 55 29 133
20 -- 11 6 29
38 35 35 31 37
22 132 20 48 28
8 8 9 8 8
-- -- -- -- --
39 201 35 34 57
7 42 6 3 45
-------------- -------------- -------------- -------------- --------------
1,857 2,572 1,646 597 5,514
55 878 27 28 272
180 4,937 245 270 70
6 1,293 14 34 18
-------------- -------------- -------------- -------------- --------------
2,098 9,680 1,932 929 5,874
-- -- -- -- (235)
(2) -- (1) (3) (2)
-------------- -------------- -------------- -------------- --------------
2,096 9,680 1,931 926 5,637
-------------- -------------- -------------- -------------- --------------
(1,055) (9,256) (930) (535) (2,626)
-------------- -------------- -------------- -------------- --------------
60,383 -- 40,333 (2,192) 75,265
-- (115,108) -- -- --
-- -- -- -- --
-- -- -- --* --
-- (2) -- -- --
-------------- -------------- -------------- -------------- --------------
60,383 (115,110) 40,333 (2,192) 75,265
-------------- -------------- -------------- -------------- --------------
(54,771) -- (18,457) 8,153 (56,796)
-- 24,616 -- -- --
-- -- -- -- --
-------------- -------------- -------------- -------------- --------------
(54,771) 24,616 (18,457) 8,153 (56,796)
-------------- -------------- -------------- -------------- --------------
5,612 (90,494) 21,876 5,961 18,469
-------------- -------------- -------------- -------------- --------------
$ 4,557 $ (99,750) $ 20,946 $ 5,426 $ 15,843
============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
CONVERTIBLE SECURITIES BALANCED ASSETS
----------------------------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/00 PERIOD ENDED PERIOD ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 5/14/99(a) (UNAUDITED) 3/31/00
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)......... $ 5,799 $ 7,795 $ 2,273 $ 1,616 $ 2,556
Net realized gain/(loss) on
investments........................ 22,723 69,747 12,894 916 1,268
Net change in unrealized
appreciation/ (depreciation) of
investments........................ (26,185) 26,348 6,835 (466) (3,486)
-------------- -------------- -------------- -------------- --------------
Net increase/(decrease) in net assets
resulting from operations.......... 2,337 103,890 22,002 2,066 338
Distributions to shareholders from
net investment income:
Primary A Shares................... (357) (204) -- (674) (1,132)
Primary B Shares................... -- -- (2,168) -- --
Investor A Shares.................. (5,880) (7,793) (17) (190) (381)
Investor B Shares.................. (258) (117) (21) (687) (1,144)
Investor C Shares.................. (64) (47) -- (14) (27)
Seafirst Shares**.................. -- -- -- -- --
Distributions to shareholders from
net realized gain on investments:
Primary A Shares................... (1,915) (577) -- -- --
Primary B Shares................... -- -- -- -- --
Investor A Shares.................. (41,129) (23,353) -- -- --
Investor B Shares.................. (1,526) (449) -- -- --
Investor C Shares.................. (400) (150) -- -- --
Seafirst Shares**.................. -- -- -- -- --
Net increase/(decrease) in net assets
from Fund share transactions....... 60,386 (34,193) (22,853) (11,206) (41,140)
-------------- -------------- -------------- -------------- --------------
Net increase/(decrease) in net
assets............................. 11,194 37,007 (3,057) (10,705) (43,486)
NET ASSETS:
Beginning of period.................. 397,384 360,377 363,434 101,215 144,701
-------------- -------------- -------------- -------------- --------------
End of period........................ $ 408,578 $ 397,384 $ 360,377 $ 90,510 $ 101,215
============== ============== ============== ============== ==============
Undistributed net investment
income/(loss)/(distributions in
excess of net investment income) at
end of period...................... $ 402 $ 1,161 $ 1,527 $ 184 $ 134
============== ============== ============== ============== ==============
</TABLE>
---------------
** Seafirst Shares converted into Investor A Shares on June 23, 2000.
(a) Represents financial information for the Pacific Horizon Capital Income
Fund, which was reorganized into Convertible Securities on May 21, 1999.
(b) Represents financial information for the Pacific Horizon Asset Allocation
Fund, which was reorganized into Asset Allocation on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
EQUITY INCOME VALUE
ASSET ALLOCATION
------------------------------------------------ ------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/00 PERIOD ENDED PERIOD ENDED 9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 5/14/99(b) (UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 4,333 $ 7,051 $ 1,317 $ 2,913 $ 7,014 $ 9,610 $ 10,874
3,652 23,761 9,905 25,142 8,707 152,330 358,083
(2,278) 5,470 1,712 (42,011) 16,930 (144,659) (366,372)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
5,707 36,282 12,934 (13,956) 32,651 17,281 2,585
(249) (208) -- (2,398) (6,631) (9,155) (10,165)
-- -- (352) -- -- -- --
(1,819) (1,207) (27) (115) (457) (526) (456)
(721) (937) (8) (58) (334) (364) (18)
(16) (18) (1,429) (4) (18) (31) (1)
(1,266) (4,797) -- -- -- -- --
(441) (430) -- -- (6,078) (148,103) (181,165)
-- -- -- -- -- -- --
(2,189) (2,658) -- -- (521) (10,946) (13,331)
(3,251) (3,480) -- -- (1,172) (14,726) (15,816)
(68) (64) -- -- (64) (1,223) (1,251)
(7,246) (8,339) -- -- -- -- --
3,755 116,201 (22) 58,740 (247,899) 22,194 (504,038)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(7,804) 130,345 11,096 42,209 (230,523) (145,599) (723,656)
428,701 298,356 287,260 509,379 739,902 1,518,870 2,242,526
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 420,897 $ 428,701 $ 298,356 $ 551,588 $ 509,379 $ 1,373,271 $ 1,518,870
============== ============== ============== ============== ============== ============== ==============
$ 669 $ 405 $ 499 $ 338 $ -- $ (231) $ 234
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 52
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
GROWTH & INCOME BLUE CHIP
-------------------------------- -----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 PERIOD ENDED PERIOD ENDED
(UNAUDITED) 3/31/00(a) (UNAUDITED) 3/31/00 5/14/99(b)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income/(loss).......... $ (2,199) $ (3,482) $ (591) $ 163 $ 218
Net realized gain/(loss) on
investments......................... -- (2,435)# -- -- --
Net realized gain/(loss) on
investments allocated from
Portfolio(+)........................ (33,810) 9,153 19,899 79,588 53,032
Net change in unrealized appreciation/
(depreciation) of investments....... -- 257,111# -- -- --
Net change in unrealized appreciation/
(depreciation) of investments
allocated from Portfolio(+)......... (3,689) (121,686) (34,716) 44,368 10,012
-------------- -------------- -------------- -------------- --------------
Net increase/(decrease) in net assets
resulting from operations........... (39,698) 138,661 (15,408) 124,119 63,262
Distributions to shareholders from net
investment income:
Primary A Shares.................... -- -- -- (28) --
Primary B Shares.................... -- -- -- -- --
Investor A Shares................... -- -- -- -- (3)
Investor B Shares................... -- -- -- -- --
Investor C Shares................... -- -- -- -- --
Seafirst Shares**................... -- -- -- (438) (343)
Distributions to shareholders from net
realized gain on investments:***
Primary A Shares.................... (720) (175) (2,040) (2,964) --
Primary B Shares.................... -- -- -- -- --
Investor A Shares................... (1,110) (156) (22,272) (34,227) --
Investor B Shares................... (1,968) (353) (4,746) (4,060) --
Investor C Shares................... (236) (19) (1,052) (1,239) --
Seafirst Shares**................... -- -- (30,470) (45,811) --
Net increase/(decrease) in net assets
from Fund share transactions........ 99,152 293,210 48,656 54,280 (4,053)
-------------- -------------- -------------- -------------- --------------
Net increase/(decrease) in net
assets.............................. 55,420 431,168 (27,332) 89,632 58,863
NET ASSETS:
Beginning of period................... 629,279 198,111 993,110 903,478 844,615
-------------- -------------- -------------- -------------- --------------
End of period......................... $ 684,699 $ 629,279 $ 965,778 $ 993,110 $ 903,478
============== ============== ============== ============== ==============
Undistributed net investment income/
(loss)/(distributions in excess of
net investment income) at end of
period.............................. $ (2,202) $ (3,481) $ (520) $ 71 $ 152
============== ============== ============== ============== ==============
</TABLE>
---------------
** Seafirst Shares converted into Investor A Shares on June 23, 2000.
*** Amount includes distributions in excess of realized gains in the amount of
$3,275 for Aggressive Growth.
# Amount represents results from operations prior to conversion to
master-feeder structure.
(+) Allocated from Growth & Income Master Portfolio and Blue Chip Master
Portfolio, respectively.
(a) As of October 8, 1999, Growth & Income converted to a master-feeder
structure.
(b) Represents financial information for the Pacific Horizon Blue Chip Fund,
which was reorganized into Blue Chip on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
STRATEGIC GROWTH CAPITAL GROWTH AGGRESSIVE GROWTH
----------------------------------- ------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ (1,373) $ (503) $ (2,235) $ (4,116) $ (1,055) $ 100
(24,745) 2,255 119,573 91,754 60,383 30,721
-- -- -- -- -- --
(20,128) 123,466 (157,424) 140,970 (54,771) (33,570)
-- -- -- -- -- --
-------------- -------------- -------------- -------------- -------------- --------------
(46,246) 125,218 (40,086) 228,608 4,557 (2,749)
-- -- -- -- -- (82)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(1,357) (4,912) (28,070) (50,238) -- (48,417)
-- -- -- -- -- --
(10) (4) (2,198) (3,711) -- (7,321)
(9) (3) (2,859) (4,876) -- (6,431)
(3) (2) (184) (309) -- (220)
-- -- -- -- -- --
489,864 485,146 (9,345) (71,428) (98,906) (49,719)
-------------- -------------- -------------- -------------- -------------- --------------
442,239 605,443 (82,742) 98,046 (94,349) (114,939)
872,266 266,823 958,853 860,807 417,019 531,958
-------------- -------------- -------------- -------------- -------------- --------------
$ 1,314,505 $ 872,266 $ 876,111 $ 958,853 $ 322,670 $ 417,019
============== ============== ============== ============== ============== ==============
$ (1,373) $ -- $ (2,235) $ -- $ (1,081) $ (26)
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 54
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
FOCUSED EQUITIES
-------------------------------------
SIX MONTHS
ENDED
9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00(a)
-------------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)................................ $ (9,256) $ (12,382)
Net realized gain/(loss) on investments..................... -- (5,148)#
Net realized gain/(loss) on investments allocated from
Portfolio(+).............................................. (115,110) 22,127
Net change in unrealized appreciation/(depreciation) of
investments............................................... -- 40,122#
Net change in unrealized appreciation/(depreciation) of
investments allocated from Portfolio(+)................... 24,616 376,082
------------- -----------
Net increase/(decrease) in net assets resulting from
operations................................................ (99,750) 420,801
Distributions to shareholders from net investment income:
Primary A Shares.......................................... -- --
Primary B Shares.......................................... -- --
Investor A Shares......................................... -- --
Investor B Shares......................................... -- --
Investor C Shares......................................... -- --
Seafirst Shares**......................................... -- --
Distributions to shareholders from net realized gain on
investments:
Primary A Shares.......................................... (1,197) (1,702)
Primary B Shares.......................................... -- --
Investor A Shares......................................... (2,627) (3,761)
Investor B Shares......................................... (3,864) (5,232)
Investor C Shares......................................... (993) (435)
Seafirst Shares**......................................... -- --
Net increase/(decrease) in net assets from Fund share
transactions.............................................. 429,681 1,194,947
------------- -----------
Net increase/(decrease) in net assets....................... 321,250 1,604,618
NET ASSETS:
Beginning of period......................................... 2,268,260 663,642
------------- -----------
End of period............................................... $ 2,589,510 $ 2,268,260
============= ==============
Undistributed net investment income/(loss)/(distributions in
excess of net investment income) at end of period......... $ (9,256) $ --
============= ==============
</TABLE>
---------------
** Seafirst Shares converted into Investor A Shares on June 23, 2000.
# Amount represents results from operations prior to conversion to
master-feeder structure.
(+) Allocated from Focused Equities Master Portfolio.
(a) As of October 8, 1999, Focused Equities converted to a master-feeder
structure.
(b) 21st Century commenced operations on April 10, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 55
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MIDCAP GROWTH 21ST CENTURY SMALL COMPANY
------------------------------------------ -------------- --------------------------------------
SIX MONTHS PERIOD SIX MONTHS
ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00(b) 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) (UNAUDITED) 3/31/00
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ (930) $ (1,619) $ (535) $ (2,626) $ (4,427)
40,333 45,199 (2,192) 75,265 94,410
-- -- -- -- --
(18,457) 110,683 8,153 (56,796) 342,129
-- -- -- -- --
-------------- -------------- -------------- -------------- --------------
20,946 154,263 5,426 15,843 432,112
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
(21,269) (7,942) -- (35,298) (682)
-- -- -- -- --
(1,682) (711) -- (12,377) (268)
(4,087) (1,551) -- (799) (12)
(225) (71) -- (211) (4)
-- -- -- -- --
20,174 (17,593) 113,827 124,388 128,329
-------------- -------------- -------------- -------------- --------------
13,857 126,395 119,253 91,546 559,475
356,926 230,531 -- 910,677 351,202
-------------- -------------- -------------- -------------- --------------
$ 370,783 $ 356,926 $ 119,253 $ 1,002,223 $ 910,677
============== ============== ============== ============== ==============
$ (929) $ -- $ (535) $ (2,626) $ --
============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
CONVERTIBLE SECURITIES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 PERIOD ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2000 MAY 14, 1999(a)
------------------ ------------------ ------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold........................................ 636 $ 12,436 738 $ 13,925 -- $ --
Issued as reinvestment of dividends......... 22 418 15 284 -- --
Redeemed.................................... (68) (1,317) (136) (2,464) -- --
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 590 $ 11,537 617 $ 11,745 -- $ --
====== ======== ====== ======== ====== ========
INVESTOR A SHARES:
Sold........................................ 680 $ 13,399 859 $ 16,460 249 $ 4,450
Issued as reinvestment of dividends......... 2,349 43,828 1,556 28,423 110 1,937
Redeemed.................................... (1,365) (26,738) (4,975) (94,506) (1,666) (29,719)
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 1,664 $ 30,489 (2,560) $(49,623) (1,307) $(23,332)
====== ======== ====== ======== ====== ========
INVESTOR B SHARES:
Sold........................................ 708 $ 13,683 294 $ 5,681 52 $ 918
Issued as reinvestment of dividends......... 92 1,713 30 541 1 17
Redeemed.................................... (38) (744) (58) (1,115) (6) (113)
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 762 $ 14,652 266 $ 5,107 47 $ 822
====== ======== ====== ======== ====== ========
INVESTOR C SHARES:
Sold........................................ 185 $ 3,613 72 $ 1,364 23 $ 417
Issued as reinvestment of dividends......... 23 422 11 196 1 21
Redeemed.................................... (17) (327) (158) (2,982) (43) (781)
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 191 $ 3,708 (75) $ (1,422) (19) $ (343)
====== ======== ====== ======== ====== ========
Total net increase/(decrease)............... 3,207 $ 60,386 (1,752) $(34,193) (1,279) $(22,853)
====== ======== ====== ======== ====== ========
</TABLE>
---------------
(a) Represents financial information for the Pacific Horizon Capital Income
Fund, which was reorganized into Convertible Securities on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 57
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
BALANCED ASSETS
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 25 $ 250 149 $ 1,589
Issued as reinvestment of dividends....................... 58 580 93 950
Redeemed.................................................. (274) (2,825) (1,371) (14,441)
------ -------- ------ --------
Net increase/(decrease)................................... (191) $ (1,995) (1,129) $(11,902)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 19 $ 196 123 $ 1,296
Issued as reinvestment of dividends....................... 17 173 34 352
Redeemed.................................................. (156) (1,595) (1,072) (11,093)
------ -------- ------ --------
Net increase/(decrease)................................... (120) $ (1,226) (915) $ (9,445)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 95 $ 958 418 $ 4,430
Issued as reinvestment of dividends....................... 65 652 106 1,091
Redeemed.................................................. (904) (9,152) (2,433) (25,045)
------ -------- ------ --------
Net increase/(decrease)................................... (744) $ (7,542) (1,909) $(19,524)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 5 $ 45 23 $ 242
Issued as reinvestment of dividends....................... 1 14 3 27
Redeemed.................................................. (50) (502) (52) (538)
------ -------- ------ --------
Net increase/(decrease)................................... (44) $ (443) (26) $ (269)
====== ======== ====== ========
Total net increase/(decrease)............................. (1,099) $(11,206) (3,979) $(41,140)
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 58
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
ASSET ALLOCATION
SIX MONTHS ENDED
SEPTEMBER 30, 2000 PERIOD ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2000 MAY 14, 1999(a)
------------------- ----------------- ----------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold............................................ 61 $ 1,471 677 $ 15,720 -- $ --
Issued in exchange for assets of Boatmen's Trust
Company Balanced Investment Fund (Note 10).... 595 13,617 -- -- -- --
Issued as reinvestment of dividends............. 23 521 16 366 -- --
Redeemed........................................ (562) (13,309) (55) (1,271) -- --
------- --------- ------ -------- ---- -------
Net increase/(decrease)......................... 117 $ 2,300 638 $ 14,815 -- $ --
======= ========= ====== ======== ==== =======
INVESTOR A SHARES:
Sold............................................ 8,601 $ 198,428 301 $ 7,189 129 $ 3,014
Issued in exchange for:
A Shares of Time Horizon Portfolio I (Note
10)......................................... -- -- 336 7,832 -- --
A Shares of Time Horizon Portfolio II (Note
10)......................................... -- -- 489 11,379 -- --
A Shares of Time Horizon Portfolio III (Note
10)......................................... -- -- 529 12,317 -- --
Issued as reinvestment of dividends............. 163 3,767 153 3,514 15 338
Redeemed........................................ (527) (12,581) (1,468) (34,435) (261) (6,117)
------- --------- ------ -------- ---- -------
Net increase/(decrease)......................... 8,237 $ 189,614 340 $ 7,796 (117) $(2,765)
======= ========= ====== ======== ==== =======
INVESTOR B SHARES:
Sold............................................ 413 $ 9,716 1,127 $ 26,086 199 $ 4,627
Issued in exchange for:
B Shares of Time Horizon Portfolio I (Note
10)......................................... -- -- 1,063 24,689 -- --
B Shares of Time Horizon Portfolio II (Note
10)......................................... -- -- 1,381 32,027 -- --
B Shares of Time Horizon Portfolio III (Note
10)......................................... -- -- 1,641 38,074 -- --
Issued as reinvestment of dividends............. 151 3,412 159 3,640 1 27
Redeemed........................................ (374) (8,840) (797) (18,438) (6) (130)
------- --------- ------ -------- ---- -------
Net increase/(decrease)......................... 190 $ 4,288 4,574 $106,078 194 $ 4,524
======= ========= ====== ======== ==== =======
INVESTOR C SHARES:
Sold............................................ 24 $ 557 77 $ 1,782 26 $ 611
Issued in exchange for:
K Shares of Time Horizon Portfolio I (Note
10)......................................... -- -- --* 11 -- --
K Shares of Time Horizon Portfolio II (Note
10)......................................... -- -- --* 8 -- --
K Shares of Time Horizon Portfolio III (Note
10)......................................... -- -- --* 1 -- --
Issued as reinvestment of dividends............. 3 80 3 82 -- 8
Redeemed........................................ (7) (167) (84) (1,978) (7) (176)
------- --------- ------ -------- ---- -------
Net increase/(decrease)......................... 20 $ 470 (4) $ (94) 19 $ 443
======= ========= ====== ======== ==== =======
SEAFIRST SHARES:**
Sold............................................ 3 $ 1,428 118 $ 2,600 211 $ 3,725
Issued as reinvestment of dividends............. 511 8,511 763 13,135 82 1,428
Redeemed........................................ (11,904) (202,856) (1,584) (28,129) (418) (7,377)
------- --------- ------ -------- ---- -------
Net increase/(decrease)......................... (11,390) $(192,917) (703) $(12,394) (125) $(2,224)
======= ========= ====== ======== ==== =======
Total net increase/(decrease)................... (2,826) $ 3,755 4,845 $116,201 (29) $ (22)
======= ========= ====== ======== ==== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
** Seafirst Shares converted into Investor A Shares on June 23, 2000.
(a) Represents financial information for the Pacific Horizon Asset Allocation
Fund, which was reorganized into Asset Allocation on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 59
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
EQUITY INCOME
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 404 $ 4,569 3,880 $ 45,563
Issued in exchange for assets of Boatmen's Trust Company
Equity Income Fund (Note 10)............................ 8,529 95,694 -- --
Issued in exchange for assets of BCA Equity Income Fund
(Note 10)............................................... 8,236 92,411 -- --
Issued as reinvestment of dividends....................... 1 14 45 515
Redeemed.................................................. (10,446) (118,976) (20,182) (237,504)
------- --------- ------- ---------
Net increase/(decrease)................................... 6,724 $ 73,712 (16,257) $(191,426)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 1,499 $ 16,914 516 $ 6,159
Issued as reinvestment of dividends....................... 9 100 76 886
Redeemed.................................................. (1,811) (20,452) (2,210) (26,050)
------- --------- ------- ---------
Net increase/(decrease)................................... (303) $ (3,438) (1,618) $ (19,005)
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 37 $ 424 160 $ 1,918
Issued as reinvestment of dividends....................... 5 54 124 1,422
Redeemed.................................................. (1,003) (11,373) (3,384) (39,252)
------- --------- ------- ---------
Net increase/(decrease)................................... (961) $ (10,895) (3,100) $ (35,912)
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 11 $ 122 19 $ 226
Issued as reinvestment of dividends....................... --* 3 7 82
Redeemed.................................................. (66) (764) (158) (1,864)
------- --------- ------- ---------
Net increase/(decrease)................................... (55) $ (639) (132) $ (1,556)
======= ========= ======= =========
Total net increase/(decrease)............................. 5,405 $ 58,740 (21,107) $(247,899)
======= ========= ======= =========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 60
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 8,976 $ 125,509 6,945 $ 118,586
Issued in exchange for assets of Boatmen's Trust Company
Equity Value Fund (Note 10)............................. 8,401 119,967 -- --
Issued in exchange for assets of Bank IV Kansas Stock Fund
(Note 10)............................................... 3,322 47,444 -- --
Issued as reinvestment of dividends....................... 5,378 75,376 4,592 79,800
Redeemed.................................................. (23,514) (340,638) (38,909) (661,959)
------- --------- ------- ---------
Net increase/(decrease)................................... 2,563 $ 27,658 (27,372) $(463,573)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 1,227 $ 17,908 3,144 $ 54,395
Issued as reinvestment of dividends....................... 711 9,962 702 12,174
Redeemed.................................................. (2,221) (32,522) (5,568) (94,505)
------- --------- ------- ---------
Net increase/(decrease)................................... (283) $ (4,652) (1,722) $ (27,936)
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 157 $ 2,258 968 $ 17,110
Issued as reinvestment of dividends....................... 1,046 14,399 889 15,224
Redeemed.................................................. (1,262) (18,210) (2,666) (44,195)
------- --------- ------- ---------
Net increase/(decrease)................................... (59) $ (1,553) (809) $ (11,861)
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 41 $ 589 105 $ 1,806
Issued as reinvestment of dividends....................... 88 1,215 71 1,219
Redeemed.................................................. (75) (1,063) (221) (3,693)
------- --------- ------- ---------
Net increase/(decrease)................................... 54 $ 741 (45) $ (668)
======= ========= ======= =========
Total net increase/(decrease)............................. 2,275 $ 22,194 (29,948) $(504,038)
======= ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 61
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GROWTH & INCOME
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,153 $ 41,894 6,082 $110,230
Issued as reinvestment of dividends....................... 18 337 7 118
Redeemed.................................................. (1,895) (37,189) (4,363) (78,685)
------ -------- ------ --------
Net increase/(decrease)................................... 276 $ 5,042 1,726 $ 31,663
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 3,914 $ 75,578 6,807 $128,700
Issued as reinvestment of dividends....................... 58 1,063 6 95
Redeemed.................................................. (1,677) (32,953) (1,580) (28,598)
------ -------- ------ --------
Net increase/(decrease)................................... 2,295 $ 43,688 5,233 $100,197
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 2,874 $ 55,496 8,825 $156,540
Issued as reinvestment of dividends....................... 101 1,838 21 328
Redeemed.................................................. (799) (15,549) (1,190) (21,099)
------ -------- ------ --------
Net increase/(decrease)................................... 2,176 $ 41,785 7,656 $135,769
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 583 $ 11,337 1,506 $ 27,336
Issued as reinvestment of dividends....................... 12 217 1 15
Redeemed.................................................. (149) (2,917) (94) (1,770)
------ -------- ------ --------
Net increase/(decrease)................................... 446 $ 8,637 1,413 $ 25,581
====== ======== ====== ========
Total net increase/(decrease)............................. 5,193 $ 99,152 16,028 $293,210
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 62
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
BLUE CHIP
SIX MONTHS ENDED
SEPTEMBER 30, 2000 PERIOD ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2000 MAY 14, 1999(a)
-------------------- ------------------- ------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold..................................... 212 $ 7,382 1,263 $ 45,270 -- $ --
Issued as reinvestment of dividends...... 30 999 33 1,102 -- --
Redeemed................................. (131) (4,668) (321) (11,193) -- --
------- --------- ------ --------- ---- --------
Net increase/(decrease).................. 111 $ 3,713 975 $ 35,179 -- $ --
======= ========= ====== ========= ==== ========
INVESTOR A SHARES:
Sold..................................... 13,711 $ 471,024 1,493 $ 53,082 520 $ 18,418
Issued as reinvestment of dividends...... 603 20,373 914 30,421 -- 6
Redeemed................................. (1,234) (43,607) (3,608) (128,588) (721) (25,590)
------- --------- ------ --------- ---- --------
Net increase/(decrease).................. 13,080 $ 447,790 (1,201) $ (45,085) (201) $ (7,166)
======= ========= ====== ========= ==== ========
INVESTOR B SHARES:
Sold..................................... 714 $ 24,748 1,525 $ 53,125 210 $ 7,461
Issued as reinvestment of dividends...... 135 4,507 117 3,877 -- --
Redeemed................................. (168) (5,821) (177) (5,879) (9) (311)
------- --------- ------ --------- ---- --------
Net increase/(decrease).................. 681 $ 23,434 1,465 $ 51,123 201 $ 7,150
======= ========= ====== ========= ==== ========
INVESTOR C SHARES:
Sold..................................... 125 $ 4,305 296 $ 10,373 58 $ 2,048
Issued as reinvestment of dividends...... 31 1,043 37 1,233 -- --
Redeemed................................. (37) (1,258) (288) (10,175) (37) (1,319)
------- --------- ------ --------- ---- --------
Net increase/(decrease).................. 119 $ 4,090 45 $ 1,431 21 $ 729
======= ========= ====== ========= ==== ========
SEAFIRST SHARES:*
Sold..................................... 45 $ 1,381 273 $ 8,531 350 $ 10,944
Issued as reinvestment of dividends...... 1,047 30,470 1,597 46,245 11 343
Redeemed................................. (15,610) (462,222) (1,389) (43,144) (513) (16,053)
------- --------- ------ --------- ---- --------
Net increase/(decrease).................. (14,518) $(430,371) 481 $ 11,632 (152) $ (4,766)
======= ========= ====== ========= ==== ========
Total net increase/(decrease)............ (527) $ 48,656 1,765 $ 54,280 (131) $ (4,053)
======= ========= ====== ========= ==== ========
</TABLE>
---------------
* Seafirst Shares converted into Investor A Shares on June 23, 2000.
(a) Represents financial information for the Pacific Horizon Blue Chip Fund,
which was reorganized into Blue Chip on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 63
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
STRATEGIC GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 16,292 $265,977 36,734 $556,572
Issued in exchange for assets of BCA Diversified Stock
Fund (Note 10).......................................... 19,506 307,415 -- --
Issued as reinvestment of dividends....................... 8 130 38 543
Redeemed.................................................. (5,886) (96,040) (5,508) (83,129)
------ -------- ------ --------
Net increase/(decrease)................................... 29,920 $477,482 31,264 $473,986
====== ======== ====== ========
INVESTOR A SHARES:+
Sold...................................................... 754 $ 12,312 365 $ 5,684
Issued as reinvestment of dividends....................... 1 9 --* 3
Redeemed.................................................. (245) (3,979) (41) (630)
------ -------- ------ --------
Net increase/(decrease)................................... 510 $ 8,342 324 $ 5,057
====== ======== ====== ========
INVESTOR B SHARES:+
Sold...................................................... 239 $ 3,888 301 $ 4,692
Issued as reinvestment of dividends....................... 1 8 --* 3
Redeemed.................................................. (35) (588) (9) (145)
------ -------- ------ --------
Net increase/(decrease)................................... 205 $ 3,308 292 $ 4,550
====== ======== ====== ========
INVESTOR C SHARES:+
Sold...................................................... 48 $ 779 101 $ 1,555
Issued as reinvestment of dividends....................... --* 3 --* 2
Redeemed.................................................. (3) (50) --* (4)
------ -------- ------ --------
Net increase/(decrease)................................... 45 $ 732 101 $ 1,553
====== ======== ====== ========
Total net increase/(decrease)............................. 30,680 $489,864 31,981 $485,146
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
+ Strategic Growth Investor A, Investor B and Investor C Shares commenced
operations on August 2, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 64
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
CAPITAL GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 7,996 $ 109,513 10,051 $ 130,555
Issued as reinvestment of dividends....................... 842 11,154 1,564 18,939
Redeemed.................................................. (9,268) (129,141) (16,881) (216,390)
------ --------- ------- ---------
Net increase/(decrease)................................... (430) $ (8,474) (5,266) $ (66,896)
====== ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 7,833 $ 104,864 12,595 $ 159,304
Issued as reinvestment of dividends....................... 138 1,803 268 3,217
Redeemed.................................................. (8,066) (108,207) (13,011) (164,173)
------ --------- ------- ---------
Net increase/(decrease)................................... (95) $ (1,540) (148) $ (1,652)
====== ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 206 $ 2,626 462 $ 5,452
Issued as reinvestment of dividends....................... 226 2,779 418 4,739
Redeemed.................................................. (407) (5,188) (1,117) (13,279)
------ --------- ------- ---------
Net increase/(decrease)................................... 25 $ 217 (237) $ (3,088)
====== ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 38 $ 488 68 $ 824
Issued as reinvestment of dividends....................... 13 167 26 299
Redeemed.................................................. (16) (203) (74) (915)
------ --------- ------- ---------
Net increase/(decrease)................................... 35 $ 452 20 $ 208
====== ========= ======= =========
Total net increase/(decrease)............................. (465) $ (9,345) (5,631) $ (71,428)
====== ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 65
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 296 $ 16,534 3,001 $ 77,380
Issued in exchange for assets of BCA Retail Trust Equity
Fund (Note 10).......................................... 1,485 28,949 -- --
Issued as reinvestment of dividends....................... -- -- 1,774 37,908
Redeemed.................................................. (5,892) (132,585) (6,497) (150,271)
------ --------- ------ ---------
Net increase/(decrease)................................... (4,111) $ (87,102) (1,722) $ (34,983)
====== ========= ====== =========
INVESTOR A SHARES:
Sold...................................................... 972 $ 19,918 2,593 $ 57,533
Issued as reinvestment of dividends....................... -- -- 318 6,776
Redeemed.................................................. (1,230) (25,152) (3,479) (75,702)
------ --------- ------ ---------
Net increase/(decrease)................................... (258) $ (5,234) (568) $ (11,393)
====== ========= ====== =========
INVESTOR B SHARES:
Sold...................................................... 22 $ 413 369 $ 9,218
Issued as reinvestment of dividends....................... -- -- 304 6,194
Redeemed.................................................. (343) (6,613) (900) (18,890)
------ --------- ------ ---------
Net increase/(decrease)................................... (321) $ (6,200) (227) $ (3,478)
====== ========= ====== =========
INVESTOR C SHARES:
Sold...................................................... 2 $ 29 25 $ 577
Issued as reinvestment of dividends....................... -- -- 10 218
Redeemed.................................................. (20) (399) (31) (660)
------ --------- ------ ---------
Net increase/(decrease)................................... (18) $ (370) 4 $ 135
====== ========= ====== =========
Total net increase/(decrease)............................. (4,708) $ (98,906) (2,513) $ (49,719)
====== ========= ====== =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 66
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FOCUSED EQUITIES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- ---------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 16,996 $ 352,747 19,546 $ 392,072
Issued as reinvestment of dividends....................... 29 574 53 923
Redeemed.................................................. (9,004) (185,504) (11,452) (235,823)
------ --------- ------- ----------
Net increase/(decrease)................................... 8,021 $ 167,817 8,147 $ 157,172
====== ========= ======= ==========
INVESTOR A SHARES:
Sold...................................................... 11,014 $ 225,675 23,689 $ 469,267
Issued as reinvestment of dividends....................... 128 2,494 189 3,274
Redeemed.................................................. (5,878) (121,011) (7,516) (147,452)
------ --------- ------- ----------
Net increase/(decrease)................................... 5,264 $ 107,158 16,362 $ 325,089
====== ========= ======= ==========
INVESTOR B SHARES:
Sold...................................................... 7,331 $ 149,914 29,697 $ 567,819
Issued as reinvestment of dividends....................... 188 3,603 281 4,822
Redeemed.................................................. (2,348) (48,093) (3,330) (63,436)
------ --------- ------- ----------
Net increase/(decrease)................................... 5,171 $ 105,424 26,648 $ 509,205
====== ========= ======= ==========
INVESTOR C SHARES:
Sold...................................................... 3,277 $ 67,245 10,976 $ 217,458
Issued as reinvestment of dividends....................... 48 925 16 285
Redeemed.................................................. (916) (18,888) (730) (14,262)
------ --------- ------- ----------
Net increase/(decrease)................................... 2,409 $ 49,282 10,262 $ 203,481
====== ========= ======= ==========
Total net increase/(decrease)............................. 20,865 $ 429,681 61,419 $1,194,947
====== ========= ======= ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 67
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MIDCAP GROWTH
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,803 $ 36,941 1,226 $ 23,013
Issued as reinvestment of dividends....................... 809 14,957 362 5,621
Redeemed.................................................. (2,044) (40,661) (2,368) (37,950)
------ --------- ------- ---------
Net increase/(decrease)................................... 568 $ 11,237 (780) $ (9,316)
====== ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 5,993 $ 118,158 13,817 $ 222,914
Issued as reinvestment of dividends....................... 76 1,370 45 688
Redeemed.................................................. (6,052) (119,222) (14,206) (228,626)
------ --------- ------- ---------
Net increase/(decrease)................................... 17 $ 306 (344) $ (5,024)
====== ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 361 $ 6,765 191 $ 3,200
Issued as reinvestment of dividends....................... 238 3,954 107 1,516
Redeemed.................................................. (167) (3,079) (572) (8,217)
------ --------- ------- ---------
Net increase/(decrease)................................... 432 $ 7,640 (274) $ (3,501)
====== ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 62 $ 1,140 57 $ 944
Issued as reinvestment of dividends....................... 12 211 5 70
Redeemed.................................................. (19) (360) (46) (766)
------ --------- ------- ---------
Net increase/(decrease)................................... 55 $ 991 16 $ 248
====== ========= ======= =========
Total net increase/(decrease)............................. 1,072 $ 20,174 (1,382) $ (17,593)
====== ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 68
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
21ST CENTURY
PERIOD ENDED
SEPTEMBER 30, 2000
(UNAUDITED)
------------------
SHARES DOLLARS
------------------
<S> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:+
Sold...................................................... 925 $ 8,910
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (238) (2,433)
------ --------
Net increase/(decrease)................................... 687 $ 6,477
====== ========
INVESTOR A SHARES:+
Sold...................................................... 3,190 $ 30,753
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (180) (1,739)
------ --------
Net increase/(decrease)................................... 3,010 $ 29,014
====== ========
INVESTOR B SHARES:+
Sold...................................................... 7,403 $ 71,085
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (163) (1,574)
------ --------
Net increase/(decrease)................................... 7,240 $ 69,511
====== ========
INVESTOR C SHARES:+
Sold...................................................... 954 $ 9,140
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (33) (315)
------ --------
Net increase/(decrease)................................... 921 $ 8,825
====== ========
Total net increase/(decrease)............................. 11,858 $113,827
====== ========
</TABLE>
---------------
+ 21st Century Primary A, Investor A, Investor B and Investor C Shares commenced
operations on April 10, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 69
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SMALL COMPANY
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 13,243 $ 266,599 19,767 $ 320,356
Issued in exchange for assets of Boatmen's Trust Company
Managed Small Capitalization Fund (Note 10)............. 4,939 88,407 -- --
Issued as reinvestment of dividends....................... 1,440 25,020 35 524
Redeemed.................................................. (12,541) (250,656) (19,725) (312,274)
------- --------- ------- ---------
Net increase/(decrease)................................... 7,081 $ 129,370 77 $ 8,606
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 18,861 $ 369,347 22,290 $ 343,670
Issued in exchange for A Shares of Pacific Horizon
Aggressive Growth Fund (Note 10)........................ -- -- 12,965 159,453
Issued as reinvestment of dividends....................... 680 11,678 17 250
Redeemed.................................................. (19,701) (389,547) (25,748) (386,849)
------- --------- ------- ---------
Net increase/(decrease)................................... (160) $ (8,522) 9,524 $ 116,524
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 182 $ 3,562 248 $ 4,544
Issued in exchange for B Shares of Pacific Horizon
Aggressive Growth Fund (Note 10)........................ -- -- 49 591
Issued as reinvestment of dividends....................... 44 741 1 12
Redeemed.................................................. (66) (1,268) (124) (1,696)
------- --------- ------- ---------
Net increase/(decrease)................................... 160 $ 3,035 174 $ 3,451
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 40 $ 785 62 $ 1,002
Issued in exchange for K Shares of Pacific Horizon
Aggressive Growth Fund (Note 10)........................ -- -- 337 4,122
Issued as reinvestment of dividends....................... 12 205 --* 4
Redeemed.................................................. (25) (485) (409) (5,380)
------- --------- ------- ---------
Net increase/(decrease)................................... 27 $ 505 (10) $ (252)
======= ========= ======= =========
Total net increase/(decrease)............................. 7,108 $ 124,388 9,765 $ 128,329
======= ========= ======= =========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 70
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONVERTIBLE SECURITIES
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $22.18 $0.32 $(0.32) $ 0.00 $(0.34) $(2.49)
Period ended 3/31/2000***#........... 18.15 0.42 5.52 5.94 (0.50) (1.41)
INVESTOR A SHARES*
Six months ended 9/30/2000#
(unaudited)........................ $22.17 $0.30 $(0.32) $(0.02) $(0.32) $(2.49)
Period ended 3/31/2000#.............. 18.31 0.46 5.26 5.72 (0.45) (1.41)
Period ended 5/14/1999............... 17.34 0.12 0.96 1.08 (0.11) --
Year ended 2/28/1999................. 17.28 0.51 0.25 0.76 (0.52) (0.18)
Year ended 2/28/1998................. 17.35 0.58 2.89 3.47 (0.59) (2.95)
Year ended 2/28/1997**............... 16.42 0.57 2.34 2.91 (0.57) (1.41)
Year ended 2/29/1996................. 13.65 0.62 2.84 3.46 (0.69) --
INVESTOR B SHARES*
Six months ended 9/30/2000#
(unaudited)........................ $22.06 $0.21 $(0.29) $(0.08) $(0.27) $(2.49)
Period ended 3/31/2000#.............. 18.27 0.44 5.12 5.56 (0.36) (1.41)
Period ended 5/14/1999............... 17.30 0.09 0.96 1.05 (0.27) --
Period ended 2/28/1999***............ 17.67 0.22 (0.17) 0.05 (0.24) (0.18)
INVESTOR C SHARES*
Six months ended 9/30/2000#
(unaudited)........................ $22.23 $0.21 $(0.30) $(0.09) $(0.27) $(2.49)
Period ended 3/31/2000#.............. 18.35 0.38 5.22 5.60 (0.31) (1.41)
Period ended 5/14/1999............... 17.37 0.10 0.97 1.07 (0.09) --
Year ended 2/28/1999................. 17.24 0.40 0.31 0.71 (0.40) (0.18)
Year ended 2/28/1998................. 17.30 0.48 2.89 3.37 (0.48) (2.95)
Period ended 2/28/1997***............ 16.24 0.32 2.43 2.75 (0.28) (1.41)
</TABLE>
---------------
+ 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.
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon Capital Income
Fund A, B and K Shares, which were reorganized into the Convertible
Securities Investor A, Investor B and Investor C Shares, respectively, as of
May 21, 1999. Prior to May 21, 1999, the Fund's investment adviser was Bank
of America National Trust and Savings Association. Effective May 21, 1999,
its investment adviser became Banc of America Advisors, Inc. and its
investment sub-adviser became Banc of America Capital Management, Inc.
** As of July 22, 1996, the Portfolio designated the existing series of shares
as "A" Shares.
*** Convertible Securities Primary A, Investor B and Investor C Shares
commenced operations on May 21, 1999, July 15, 1998 and October 21, 1996,
respectively.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 71
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(2.83) $19.35 0.70% $ 23,366 0.98%+(a) 3.26%+ 31% 0.99%+(a)
(1.91) 22.18 35.21 13,688 0.97+(b) 2.21+ 65 0.98+
$(2.81) $19.34 0.53% $354,494 1.23%+(a) 3.01%+ 31% 1.24%+(a)
(1.86) 22.17 33.68 369,488 1.22+(b) 1.96+ 65 1.23+
(0.11) 18.31 6.25 352,000 1.30+ 3.07+ 16 1.32+
(0.70) 17.34 4.64 356,000 1.15(a) 2.97 66 1.16(a)
(3.54) 17.28 21.54 391,000 1.10(a) 3.35 69 1.12(a)
(1.98) 17.35 18.53 309,000 1.18(a) 3.40 124 1.19(a)
(0.69) 16.42 25.96 247,000 1.23(a) 4.05 57 1.26(a)
$(2.76) $19.22 0.21% $ 24,368 1.98%+(a) 2.26%+ 31% 1.99%+(a)
(1.77) 22.06 32.76 11,175 1.97+(b) 1.21+ 65 1.98+
(0.08) 18.27 6.10 4,000 2.06+ 2.34+ 16 2.08+
(0.42) 17.30 0.44 3,000 1.96+(a) 2.14+ 66 1.97(a)+
$(2.76) $19.38 0.15% $ 6,350 1.98%+(a) 2.26%+ 31% 1.99%+(a)
(1.72) 22.23 32.81 3,033 1.97+(b) 1.21+ 65 1.98+
(0.09) 18.35 6.17 4,000 1.80+ 2.56+ 16 2.07+
(0.58) 17.37 4.29 4,000 1.65(a) 2.45 66 1.91(a)
(3.43) 17.24 20.97 3,000 1.60 2.85 69 1.86
(1.69) 17.30 17.47 1,000 1.66+ 2.85+ 124 1.91+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 72
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCED ASSETS
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.17 $0.20 $ 0.05 $ 0.25 $(0.20) $ --
Year ended 3/31/2000#................ 10.39 0.30 (0.22) 0.08 (0.30) --
Year ended 3/31/1999#................ 11.49 0.26 (0.39) (0.13) (0.23) (0.74)
Year ended 3/31/1998................. 11.15 0.29 2.68 2.97 (0.29) (2.34)
Year ended 3/31/1997................. 11.65 0.39 1.03 1.42 (0.38) (1.54)
Period ended 3/31/1996*.............. 12.68 0.11 0.45 0.56 (0.18) (1.41)
Year ended 11/30/1995................ 10.44 0.38 2.21 2.59 (0.33) (0.02)
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.16 $0.19 $ 0.05 $ 0.24 $(0.19) $ --
Year ended 3/31/2000#................ 10.38 0.24 (0.19) 0.05 (0.27) --
Year ended 3/31/1999#................ 11.47 0.23 (0.38) (0.15) (0.20) (0.74)
Year ended 3/31/1998................. 11.13 0.27 2.68 2.95 (0.27) (2.34)
Year ended 3/31/1997................. 11.64 0.34 1.05 1.39 (0.36) (1.54)
Period ended 3/31/1996*.............. 12.66 0.11 0.45 0.56 (0.17) (1.41)
Year ended 11/30/1995................ 10.42 0.34 2.23 2.57 (0.31) (0.02)
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.14 $0.15 $ 0.05 $ 0.20 $(0.15) $ --
Year ended 3/31/2000#................ 10.36 0.17 (0.20) (0.03) (0.19) --
Year ended 3/31/1999#................ 11.45 0.15 (0.38) (0.23) (0.12) (0.74)
Year ended 3/31/1998................. 11.11 0.19 2.68 2.87 (0.19) (2.34)
Year ended 3/31/1997................. 11.62 0.29 1.04 1.33 (0.30) (1.54)
Period ended 3/31/1996*.............. 12.63 0.09 0.45 0.54 (0.14) (1.41)
Year ended 11/30/1995................ 10.40 0.28 2.22 2.50 (0.25) (0.02)
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.10 $0.15 $ 0.05 $ 0.20 $(0.15) $ --
Year ended 3/31/2000#................ 10.32 0.17 (0.20) (0.03) (0.19) --
Year ended 3/31/1999#................ 11.41 0.15 (0.38) (0.23) (0.12) (0.74)
Year ended 3/31/1998................. 11.08 0.20 2.67 2.87 (0.20) (2.34)
Year ended 3/31/1997................. 11.60 0.33 1.02 1.35 (0.33) (1.54)
Period ended 3/31/1996*.............. 12.61 0.09 0.45 0.54 (0.14) (1.41)
Year ended 11/30/1995................ 10.38 0.26 2.21 2.47 (0.22) (0.02)
</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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 73
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.20) $10.22 2.50% $ 34,075 0.96%+(a) 3.93%+ 64% 1.17%+(a)
(0.30) 10.17 0.73 35,850 1.01(a)(b) 2.61 103 1.15(a)
(0.97) 10.39 (1.20) 48,373 1.00(a)(b) 2.43 126 1.00(a)
(2.63) 11.49 30.35 20,299 1.08(a)(b) 2.70 276 1.08(a)
(1.92) 11.15 12.50 135,731 1.00(a) 3.31 264 1.00(a)
(1.59) 11.65 4.90 164,215 1.00+ 2.91+ 83 1.00+
(0.35) 12.68 25.27 163,198 0.99 3.25 174 0.99
$(0.19) $10.21 2.37% $ 10,070 1.21%+(a) 3.68%+ 64% 1.42%+(a)
(0.27) 10.16 0.47 11,240 1.26(a)(b) 2.36 103 1.40(a)
(0.94) 10.38 (1.36) 20,979 1.25(a)(b) 2.18 126 1.25(a)
(2.61) 11.47 30.13 16,009 1.33(a)(b) 2.45 276 1.33(a)
(1.90) 11.13 12.18 9,075 1.25(a) 3.06 264 1.25(a)
(1.58) 11.64 4.86 6,261 1.25+ 2.66+ 83 1.25+
(0.33) 12.66 25.01 5,276 1.24 3.00 174 1.24
$(0.15) $10.19 1.99% $ 45,489 1.96%+(a) 2.93%+ 64% 2.17%+(a)
(0.19) 10.14 (0.30) 52,810 2.01(a)(b) 1.61 103 2.15(a)
(0.86) 10.36 (2.13) 73,735 2.00(a)(b) 1.43 126 2.00(a)
(2.53) 11.45 29.35 78,813 2.00(a)(b) 1.78 276 2.00(a)
(1.84) 11.11 11.62 64,058 1.75(a) 2.56 264 1.75(a)
(1.55) 11.62 4.69 65,764 1.75+ 2.16+ 83 1.75+
(0.27) 12.63 24.35 62,275 1.74 2.50 174 1.74
$(0.15) $10.15 1.96% $ 876 1.96%+(a) 2.93%+ 64% 2.17%+(a)
(0.19) 10.10 (0.27) 1,315 2.01(a)(b) 1.61 103 2.15(a)
(0.86) 10.32 (2.17) 1,614 2.00(a)(b) 1.43 126 2.00(a)
(2.54) 11.41 29.43 1,947 1.91(a)(b) 1.87 276 1.91(a)
(1.87) 11.08 11.85 1,396 1.50(a) 2.81 264 1.50(a)
(1.55) 11.60 4.71 1,187 1.62+ 2.29+ 83 1.62+
(0.24) 12.61 24.03 992 1.99 2.25 174 1.99
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 74
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $24.35 $0.29 $0.03 $0.32 $(0.25) $(0.65)
Period ended 3/31/2000***#........... 23.06 0.49 1.93 2.42 (0.41) (0.72)
INVESTOR A SHARES*,****
Six months ended 9/30/2000#
(unaudited)........................ $24.35 $0.25 $0.04 $0.29 $(0.23) $(0.65)
Period ended 3/31/2000#.............. 23.40 0.43 1.59 2.02 (0.35) (0.72)
Period ended 5/14/1999............... 22.50 0.10 0.91 1.01 (0.11) --
Year ended 2/28/1999................. 21.41 0.55 2.48 3.03 (0.45) (1.49)
Year ended 2/28/1998................. 19.40 0.52 3.72 4.24 (0.47) (1.76)
Year ended 2/28/1997**............... 17.52 0.48 2.50 2.98 (0.46) (0.64)
Year ended 2/29/1996................. 15.15 0.52 2.86 3.38 (0.53) (0.48)
INVESTOR B SHARES*
Six months ended 9/30/2000#
(unaudited)........................ $24.24 $0.17 $0.03 $0.20 $(0.14) $(0.65)
Period ended 3/31/2000#.............. 23.32 0.47 1.39 1.86 (0.22) (0.72)
Period ended 5/14/1999............... 22.45 0.06 0.89 0.95 (0.08) --
Period ended 2/28/1999***............ 23.17 0.22 0.75 0.97 (0.20) (1.49)
INVESTOR C SHARES*
Six months ended 9/30/2000#
(unaudited)........................ $24.27 $0.17 $0.02 $0.19 $(0.14) $(0.65)
Period ended 3/31/2000#.............. 23.33 0.42 1.43 1.85 (0.19) (0.72)
Period ended 5/14/1999............... 22.45 0.05 0.92 0.97 (0.09) --
Year ended 2/28/1999................. 21.36 0.44 2.49 2.93 (0.35) (1.49)
Year ended 2/28/1998................. 19.40 0.41 3.66 4.07 (0.36) (1.75)
Period ended 2/28/1997***............ 17.23 0.19 2.80 2.99 (0.18) (0.64)
</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.
* The financial information for the fiscal periods through May 14, 1999
reflect the Financial information for the Pacific Horizon Asset Allocation
Fund A, B, and K Shares, which were reorganized into the Asset Allocation
Investor A, Investor B, and Investor C Shares, respectively, as of May 21,
1999. Prior to May 21, 1999, the Fund's investment adviser was Bank of
America National Trust and Savings Association. Effective May 21, 1999,
its investment adviser became Banc of America Advisors, Inc. and its
investment, sub-adviser became Banc of America Capital Management, Inc.
** As of July 22, 1996, the Fund designated the existing series of shares as
"A" Shares.
*** Asset Allocation Primary A, Investor B, and Investor C Shares commenced
operations on May 21, 1999, July 15, 1998, and July 22, 1996, respectively.
**** Seafirst Shares converted into Investor A Shares on June 23, 2000.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE> 75
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.90) $23.77 1.45% $ 17,934 0.96%+(a)(b) 2.44%+ 36% 1.01%+(a)
(1.13) 24.35 10.88 15,532 0.95+(a)(b) 1.85+ 84 1.02+(a)
$(0.88) $23.76 1.29% $277,104 1.21%+(a)(b) 2.19%+ 36% 1.26%+(a)
(1.07) 24.35 8.99 83,412 1.20+(a)(b) 1.60+ 84 1.27+(a)
(0.11) 23.40 4.50 72,000 1.18+ 2.01+ 20 1.20+
(1.94) 22.50 14.72 72,000 0.94 2.64 114 0.94
(2.23) 21.41 23.07 49,000 1.03 2.67 67 1.09
(1.10) 19.40 17.64 35,000 1.25 2.59 116 1.94
(1.01) 17.52 22.80 22,000 0.62 3.49 157 2.92
$(0.79) $23.65 0.94% $123,135 1.96%+(a)(b) 1.44%+ 36% 2.01%+(a)
(0.94) 24.24 8.31 121,644 1.95+(a)(b) 0.85+ 84 2.02+(a)
(0.08) 23.32 4.26 10,000 1.95+ 1.26+ 20 1.97+
(1.69) 22.45 4.59 6,000 1.74+ 1.92+ 114 1.74
$(0.79) $23.67 0.91% $ 2,724 1.96%+(a)(b) 1.44%+ 36% 2.01%+(a)
(0.91) 24.27 8.24 2,305 1.95+(a)(b) 0.85+ 84 2.02+(a)
(0.09) 23.33 4.31 2,000 1.67+ 1.52+ 20 1.96+
(1.84) 22.45 14.23 2,000 1.44 2.14 114 1.69
(2.11) 21.36 22.10 2,000 1.52 2.17 67 1.58
(0.82) 19.40 17.69 1,000 1.94+ 2.31+ 116 3.26+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE> 76
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EQUITY INCOME
PRIMARY A SHARES
Six months ended 9/30/2000
(unaudited)........................ $11.57 $0.07 $(0.43) $(0.36) $(0.06) $ --
Year ended 3/31/2000................. 11.36 0.15 0.36 0.51 (0.15) (0.15)
Year ended 3/31/1999#................ 13.94 0.23 (1.45) (1.22) (0.23) (1.13)
Year ended 3/31/1998#................ 12.30 0.29 3.79 4.08 (0.28) (2.16)
Year ended 3/31/1997................. 13.14 0.43 1.55 1.98 (0.41) (2.41)
Period ended 3/31/1996*.............. 11.81 0.30 1.77 2.07 (0.37) (0.37)
Year ended 5/31/1995................. 11.43 0.42 1.11 1.53 (0.42) (0.73)
INVESTOR A SHARES
Six months ended 9/30/2000
(unaudited)........................ $11.52 $0.05 $(0.41) $(0.36) $(0.04) $ --
Year ended 3/31/2000................. 11.31 0.12 0.36 0.48 (0.12) (0.15)
Year ended 3/31/1999#................ 13.89 0.20 (1.45) (1.25) (0.20) (1.13)
Year ended 3/31/1998#................ 12.26 0.26 3.77 4.03 (0.24) (2.16)
Year ended 3/31/1997................. 13.11 0.36 1.58 1.94 (0.38) (2.41)
Period ended 3/31/1996*.............. 11.78 0.27 1.77 2.04 (0.34) (0.37)
Year ended 5/31/1995................. 11.41 0.40 1.10 1.50 (0.40) (0.73)
INVESTOR B SHARES
Six months ended 9/30/2000
(unaudited)........................ $11.51 $0.01 $(0.40) $(0.39) $(0.01) $ --
Year ended 3/31/2000................. 11.31 0.03 0.36 0.39 (0.04) (0.15)
Year ended 3/31/1999#................ 13.87 0.11 (1.45) (1.34) (0.09) (1.13)
Year ended 3/31/1998#................ 12.25 0.17 3.77 3.94 (0.16) (2.16)
Year ended 3/31/1997................. 13.10 0.31 1.57 1.88 (0.32) (2.41)
Period ended 3/31/1996*.............. 11.77 0.22 1.76 1.98 (0.28) (0.37)
Year ended 5/31/1995................. 11.40 0.34 1.11 1.45 (0.35) (0.73)
INVESTOR C SHARES
Six months ended 9/30/2000
(unaudited)........................ $11.66 $0.01 $(0.41) $(0.40) $(0.01) $ --
Year ended 3/31/2000................. 11.45 0.03 0.37 0.40 (0.04) (0.15)
Year ended 3/31/1999#................ 14.01 0.12 (1.44) (1.32) (0.11) (1.13)
Year ended 3/31/1998#................ 12.35 0.18 3.83 4.01 (0.19) (2.16)
Year ended 3/31/1997................. 13.19 0.33 1.59 1.92 (0.35) (2.41)
Period ended 3/31/1996*.............. 11.83 0.21 1.78 1.99 (0.26) (0.37)
Year ended 5/31/1995................. 11.47 0.32 1.08 1.40 (0.31) (0.73)
</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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE> 77
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.06) $11.15 (3.16)% $458,237 0.86%+(a)(b) 1.14%+ 67% 0.87%+(a)
(0.30) 11.57 4.51 397,479 0.85(a)(b) 1.25 54 0.85(a)
(1.36) 11.36 (9.40) 575,076 0.80(a)(b) 1.92 69 0.80(a)
(2.44) 13.94 37.21 915,630 0.86(a) 2.22 74 0.86(a)
(2.82) 12.30 15.62 200,772 0.91(a) 3.09 102 0.91(a)
(0.74) 13.14 17.98 283,142 0.90+ 2.84+ 59 0.90+
(1.15) 11.81 14.79 283,082 0.92 3.75 158 0.93
$(0.04) $11.12 (3.11)% $ 29,050 1.11%+(a)(b) 0.89%+ 67% 1.12%+(a)
(0.27) 11.52 4.26 33,569 1.10(a)(b) 1.00 54 1.10(a)
(1.33) 11.31 (9.87) 51,278 1.05(a)(b) 1.67 69 1.05(a)
(2.40) 13.89 36.92 68,006 1.11(a) 1.97 74 1.11(a)
(2.79) 12.26 15.30 47,891 1.16(a) 2.84 102 1.16(a)
(0.71) 13.11 17.75 42,606 1.15+ 2.59+ 59 1.15+
(1.13) 11.78 14.53 35,538 1.17 3.50 158 1.18
$(0.01) $11.11 (3.39)% $ 60,708 1.86%+(a)(b) 0.14%+ 67% 1.87%+(a)
(0.19) 11.51 3.43 73,966 1.85(a)(b) 0.25 54 1.85(a)
(1.22) 11.31 (10.49) 107,747 1.80(a)(b) 0.92 69 1.80(a)
(2.32) 13.87 36.02 144,929 1.78(a) 1.30 74 1.78(a)
(2.73) 12.25 14.76 108,055 1.66(a) 2.34 102 1.66(a)
(0.65) 13.10 17.21 104,026 1.65+ 2.09+ 59 1.65+
(1.08) 11.77 14.03 75,371 1.67 3.00 158 1.68
$(0.01) $11.25 (3.43)% $ 3,593 1.86%+(a)(b) 0.14%+ 67% 1.87%+(a)
(0.19) 11.66 3.46 4,365 1.85(a)(b) 0.25 54 1.85(a)
(1.24) 11.45 (10.28) 5,801 1.64(a)(b) 1.08 69 1.80(a)
(2.35) 14.01 36.28 10,348 1.69(a) 1.39 74 1.69(a)
(2.76) 12.35 15.01 5,007 1.41(a) 2.59 102 1.41(a)
(0.63) 13.19 17.20 4,612 1.75+ 1.99+ 59 1.75+
(1.04) 11.83 13.49 4,278 1.92 2.75 158 1.93
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE> 78
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VALUE
PRIMARY A SHARES
Six months ended 9/30/2000
(unaudited).................. $16.24 $ 0.10 $ 0.08 $ 0.18 $(0.11) $(1.97)
Year ended 3/31/2000#.......... 18.16 0.11 (0.06) 0.05 (0.11) (1.86)
Year ended 3/31/1999#.......... 19.92 0.13 0.64 0.77 (0.14) (2.39)
Year ended 3/31/1998#.......... 17.87 0.20 5.98 6.18 (0.19) (3.94)
Year ended 3/31/1997........... 16.60 0.26 2.69 2.95 (0.26) (1.42)
Period ended 3/31/1996*........ 16.21 0.07 1.06 1.13 (0.12) (0.62)
Year ended 11/30/1995.......... 12.98 0.27 3.91 4.18 (0.28) (0.67)
INVESTOR A SHARES
Six months ended 9/30/2000
(unaudited).................. $16.24 $ 0.09 $ 0.06 $ 0.15 $(0.09) $(1.97)
Year ended 3/31/2000#.......... 18.16 0.07 (0.07) 0.00 (0.06) (1.86)
Year ended 3/31/1999#.......... 19.92 0.09 0.63 0.72 (0.09) (2.39)
Year ended 3/31/1998#.......... 17.87 0.15 5.98 6.13 (0.14) (3.94)
Year ended 3/31/1997........... 16.60 0.21 2.70 2.91 (0.22) (1.42)
Period ended 3/31/1996*........ 16.21 0.05 1.06 1.11 (0.10) (0.62)
Year ended 11/30/1995.......... 12.98 0.23 3.92 4.15 (0.25) (0.67)
INVESTOR B SHARES
Six months ended 9/30/2000
(unaudited).................. $16.00 $ 0.03 $ 0.07 $ 0.10 $(0.05) $(1.97)
Year ended 3/31/2000#.......... 18.00 (0.06) (0.08) (0.14) (0.00)## (1.86)
Year ended 3/31/1999#.......... 19.81 (0.05) 0.63 0.58 -- (2.39)
Year ended 3/31/1998#.......... 17.81 0.02 5.96 5.98 (0.04) (3.94)
Year ended 3/31/1997........... 16.55 0.14 2.68 2.82 (0.14) (1.42)
Period ended 3/31/1996*........ 16.15 0.03 1.05 1.08 (0.06) (0.62)
Year ended 11/30/1995.......... 12.94 0.17 3.89 4.06 (0.18) (0.67)
INVESTOR C SHARES
Six months ended 9/30/2000
(unaudited).................. $15.99 $ 0.03 $ 0.07 $ 0.10 $(0.05) $(1.97)
Year ended 3/31/2000#.......... 17.98 (0.06) (0.07) (0.13) (0.00)## (1.86)
Year ended 3/31/1999#.......... 19.75 (0.02) 0.65 0.63 (0.01) (2.39)
Year ended 3/31/1998#.......... 17.75 0.04 5.95 5.99 (0.05) (3.94)
Year ended 3/31/1997........... 16.50 0.17 2.68 2.85 (0.18) (1.42)
Period ended 3/31/1996*........ 16.09 0.04 1.05 1.09 (0.06) (0.62)
Year ended 11/30/1995.......... 12.90 0.13 3.88 4.01 (0.15) (0.67)
</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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE> 79
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
RATIO OF EXPENSES TO ---------------
OPERATING AVERAGE NET RATIO OF NET RATIO OF
TOTAL NET ASSETS EXPENSES TO ASSETS INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF AVERAGE INCLUDING INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD NET INTEREST AVERAGE NET TURNOVER AVERAGE NET
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS EXPENSE ASSETS RATE ASSETS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(2.08) $14.34 1.45% $1,176,252 0.94%+(a) 0.95%+ 1.42%+ 69% 0.95%+(a)
(1.97) 16.24 (0.16) 1,290,572 0.93(a)(b) -- 0.65 95 0.93(a)
(2.53) 18.16 4.15 1,939,704 0.94(a)(b) -- 0.76 38 0.94(a)
(4.13) 19.92 38.53 2,248,460 0.95(a) -- 1.04 79 0.95(a)
(1.68) 17.87 18.07 1,200,853 0.97(a) -- 1.51 47 0.97(a)
(0.74) 16.60 7.20 998,957 0.96+ -- 1.30+ 12 0.96+
(0.95) 16.21 34.53 956,669 0.94 -- 1.90 63 0.94
$(2.06) $14.33 1.26% $ 79,126 1.19%+(a) 1.20%+ 1.17%+ 69% 1.20%+(a)
(1.92) 16.24 (0.47) 94,256 1.18(a)(b) -- 0.40 95 1.18(a)
(2.48) 18.16 3.96 136,691 1.19(a)(b) -- 0.51 38 1.19(a)
(4.08) 19.92 38.22 149,167 1.20(a) -- 0.79 79 1.20(a)
(1.64) 17.87 17.80 70,305 1.22(a) -- 1.26 47 1.22(a)
(0.72) 16.60 7.07 54,341 1.21+ -- 1.05+ 12 1.21+
(0.92) 16.21 34.22 48,440 1.19 -- 1.65 63 1.19
$(2.02) $14.08 0.89% $ 108,291 1.94%+(a) 1.95%+ 0.42%+ 69% 1.95%+(a)
(1.86) 16.00 (1.24) 124,000 1.93(a)(b) -- (0.35) 95 1.93(a)
(2.39) 18.00 3.11 154,025 1.94(a)(b) -- (0.24) 38 1.94(a)
(3.98) 19.81 37.29 149,635 1.87(a) -- 0.12 79 1.87(a)
(1.56) 17.81 17.21 99,999 1.72(a) -- 0.76 47 1.72(a)
(0.68) 16.55 6.90 88,861 1.71+ -- 0.55+ 12 1.71+
(0.85) 16.15 33.55 83,699 1.69 -- 1.15 63 1.69
$(2.02) $14.07 0.89% $ 9,602 1.94%+(a) 1.95%+ 0.42%+ 69% 1.95%+(a)
(1.86) 15.99 (1.18) 10,042 1.93(a)(b) -- (0.32) 95 1.93(a)
(2.40) 17.98 3.39 12,106 1.70(a)(b) -- 0.00 38 1.94(a)
(3.99) 19.75 37.55 13,969 1.78(a) -- 0.21 79 1.78(a)
(1.60) 17.75 17.51 6,519 1.47(a) -- 1.01 47 1.47(a)
(0.68) 16.50 6.99 4,633 1.58+ -- 0.68+ 12 1.58+
(0.82) 16.09 33.15 4,185 1.94 -- 0.90 63 1.94
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE> 80
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DISTRIBUTIONS NET ASSET
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE REALIZED END OF
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS GAINS PERIOD
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROWTH & INCOME
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)................... $21.61 $(0.01) $(1.43) $(1.44) $(0.13) $20.04
Year ended 3/31/2000............ 14.91 (0.07) 6.81 6.74 (0.04) 21.61
Year ended 3/31/1999#........... 12.03 0.00## 2.89 2.89 (0.01) 14.91
Period ended 3/31/1998*#........ 10.00 0.01 2.02 2.03 -- 12.03
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)................... $21.62 $(0.03) $(1.44) $(1.47) $(0.13) $20.02
Year ended 3/31/2000............ 14.95 (0.11) 6.82 6.71 (0.04) 21.62
Year ended 3/31/1999#........... 12.02 (0.03) 2.97 2.94 (0.01) 14.95
Period ended 3/31/1998*#........ 10.00 0.00## 2.02 2.02 -- 12.02
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)................... $21.31 $(0.11) $(1.41) $(1.52) $(0.13) $19.66
Year ended 3/31/2000............ 14.85 (0.24) 6.74 6.50 (0.04) 21.31
Year ended 3/31/1999#........... 12.02 (0.12) 2.96 2.84 (0.01) 14.85
Period ended 3/31/1998*#........ 10.00 (0.02) 2.04 2.02 -- 12.02
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)................... $21.34 $(0.11) $(1.42) $(1.53) $(0.13) $19.68
Year ended 3/31/2000............ 14.86 (0.25) 6.77 6.52 (0.04) 21.34
Year ended 3/31/1999#........... 12.02 (0.12) 2.97 2.85 (0.01) 14.86
Period ended 3/31/1998*#........ 10.00 (0.02) 2.04 2.02 -- 12.02
</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.
* Growth & Income Primary A, Investor A, Investor B and Investor C Shares
commenced operations on December 31, 1997.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
### Amount represents results prior to conversion to a master-feeder structure.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE> 81
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET
RETURN++ (000) ASSETS ASSETS RATE ASSETS
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(6.61)% $110,348 1.11%+ (0.08)%+ -- 1.11%+
45.33 113,028 1.23(a) (0.37) 55%### 1.23(a)
24.05 52,229 1.25(a) 0.05 150 1.25(a)
20.30 2,517 1.09+(a) 0.38+ 22 1.97+(a)
(6.75)% $208,787 1.36%+ (0.33)%+ -- 1.36%+
45.01 175,859 1.48(a) (0.62) 55%### 1.48(a)
24.38 43,392 1.50(a) (0.20) 150 1.50(a)
20.20 1,141 1.34+(a) 0.13+ 22 2.22+(a)
(7.08)% $324,701 2.11%+ (1.08)%+ -- 2.11%+
43.90 305,607 2.23(a) (1.37) 55%### 2.23(a)
23.55 99,257 2.25(a) (0.95) 150 2.25(a)
20.20 7,907 2.09+(a) (0.62)+ 22 2.97+(a)
(7.07)% $ 40,863 2.11%+ (1.08)%+ -- 2.11%+
43.93 34,785 2.23(a) (1.37) 55%### 2.23(a)
23.63 3,233 2.25(a) (0.95) 150 2.25(a)
20.20 518 2.09+(a) (0.62)+ 22 2.97+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE> 82
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BLUE CHIP
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $37.33 $ 0.03 $(0.62) $(0.59) $ -- $(2.13)
Period ended 3/31/2000***#..... 35.00 0.06 5.65 5.71 (0.03) (3.35)
INVESTOR A SHARES*,****
Six months ended 9/30/2000#
(unaudited).................. $37.24 $(0.02) $(0.62) $(0.64) $ -- $(2.13)
Period ended 3/31/2000#........ 35.92 0.02 4.65 4.67 -- (3.35)
Period ended 5/14/1999......... 33.43 0.00## 2.49 2.49 -- --
Year ended 2/28/1999........... 29.90 0.09 5.26 5.35 (0.10) (1.72)
Year ended 2/28/1998........... 25.22 0.16 7.91 8.07 (0.15) (3.24)
Year ended 2/28/1997**......... 20.53 0.23 5.21 5.44 (0.22) (0.53)
Year ended 2/29/1996........... 15.81 0.26 4.96 5.22 (0.28) (0.22)
INVESTOR B SHARES*
Six months ended 9/30/2000#
(unaudited).................. $36.80 $(0.15) $(0.60) $(0.75) $ -- $(2.13)
Period ended 3/31/2000#........ 35.77 (0.26) 4.64 4.38 -- (3.35)
Period ended 5/14/1999......... 33.34 (0.02) 2.45 2.43 -- --
Period ended 2/28/1999***...... 33.73 (0.05) 1.39 1.34 (0.01) (1.72)
INVESTOR SHARES C*
Six months ended 9/30/2000#
(unaudited).................. $36.71 $(0.15) $(0.61) $(0.76) $ -- $(2.13)
Period ended 3/31/2000#........ 35.69 (0.24) 4.61 4.37 -- (3.35)
Period ended 5/14/1999......... 33.24 (0.04) 2.49 2.45 -- --
Year ended 2/28/1999........... 29.79 (0.06) 5.23 5.17 -- (1.72)
Year ended 2/28/1998........... 25.20 0.04 7.83 7.87 (0.04) (3.24)
Period ended 2/28/1997***...... 20.38 0.07 5.35 5.42 (0.07) (0.53)
</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.
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon Blue Chip Fund A,
B, and K Shares, which were reorganized into the Blue Chip Investor A,
Investor B, and Investor C Shares, respectively, as of May 21, 1999. Prior
to May 21, 1999, the Fund's investment adviser was Bank of America National
Trust and Savings Association. Effective May 21, 1999, its investment
adviser became Banc of America Advisors, Inc. and its investment
sub-adviser became Banc of America Capital Management, Inc.
** As of July 22, 1996, the Fund designated the existing series of shares as
"A" Shares.
*** Blue Chip Primary A, Investor B, and Investor C Shares commenced operations
on May 21, 1999, July 15, 1998, and July 22, 1996.
**** Seafirst Shares converted into Investor A Shares on June 23, 2000.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE> 83
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$(2.13) $34.61 (1.48)% $ 37,538 0.95%+ 0.14%+ 0.96%+
(3.38) 37.33 17.54 36,393 0.95+ 0.17+ 0.98+
$(2.13) $34.47 (1.62)% $815,715 1.20%+ (0.11)%+ 1.21%+
(3.35) 37.24 14.10 394,071 1.20+ (0.08)+ 1.23+
-- 35.92 7.45 423,000 1.29+ (0.03)+ 1.33+
(1.82) 33.43 18.58 401,000 1.16 0.31 1.17
(3.39) 29.90 33.96 288,000 1.18 0.63 1.22
(0.75) 25.22 27.01 153,000 1.28 0.99 1.71
(0.50) 20.53 33.39 67,000 0.83 1.63 2.28
$(2.13) $33.92 (1.98)% $ 92,719 1.95%+ (0.86)%+ 1.96%+
(3.35) 36.80 13.37 75,538 1.95+ (0.83)+ 1.98+
-- 35.77 7.29 21,000 2.05+ (0.77)+ 2.09+
(1.73) 33.34 4.53 13,000 1.97+ (0.58)+ 1.99+
$(2.13) $33.82 (1.96)% $ 19,806 1.95%+ (0.86)%+ 1.96%+
(3.35) 36.71 13.35 17,123 1.95+ (0.83)+ 1.98+
-- 35.69 7.37 15,000 1.80+ (0.54)+ 2.08+
(1.72) 33.24 17.96 13,000 1.66 (0.22) 1.92
(3.28) 29.79 33.08 7,000 1.67 0.12 1.69
(0.60) 25.20 26.96 1,000 1.92+ 0.45+ 2.12+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE> 84
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS NET ASSET
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE REALIZED END OF
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS GAINS PERIOD
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
STRATEGIC GROWTH
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $17.03 $(0.02) $(0.93) $(0.95) $(0.03) $16.05
Year ended 3/31/2000#.......... 13.86 (0.02) 3.39 3.37 (0.20) 17.03
Period ended 3/31/1999*#....... 10.00 0.00## 3.87 3.87 (0.01) 13.86
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited).................. $16.98 $(0.04) $(0.88) $(0.92) $(0.03) $16.03
Period ended 3/31/2000**#...... 13.88 (0.03) 3.19 3.16 (0.06) 16.98
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited).................. $16.90 $(0.10) $(0.88) $(0.98) $(0.03) $15.89
Period ended 3/31/2000**#...... 13.88 (0.10) 3.18 3.08 (0.06) 16.90
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $16.92 $(0.10) $(0.88) $(0.98) $(0.03) $15.91
Period ended 3/31/2000**#...... 13.88 (0.10) 3.20 3.10 (0.06) 16.92
</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.
* Strategic Growth Primary A Shares commenced operations on October 2, 1998.
** Strategic Growth Investor A, Investor B and Investor C Shares commenced
operations on August 2, 1999.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE> 85
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(5.60)% $1,290,919 0.94%+(a)(b) (0.22)%+ 22% 0.94%+(a)
24.63 860,124 0.97 (0.10) 23 0.97
38.65 266,823 1.07+(a) (0.03)+ 34 1.07+(a)
(5.44)% $ 13,376 1.19%+(a)(b) (0.47)%+ 22% 1.19%+(a)
22.86 5,503 1.22+ (0.35)+ 23 1.22+
(5.76)% $ 7,892 1.94%+(a)(b) (1.22)%+ 22% 1.94%+(a)
22.29 4,934 1.97+ (1.10)+ 23 1.97+
(5.76)% $ 2,318 1.94%+(a)(b) (1.22)%+ 22% 1.94%+(a)
22.36 1,706 1.97+ (1.10)+ 23 1.97+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE> 86
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL GROWTH
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $14.59 $(0.03) $(0.60) $(0.63) $ -- $(0.52)
Year ended 3/31/2000........... 12.05 (0.05) 3.47 3.42 -- (0.88)
Year ended 3/31/1999#.......... 13.30 0.00## 1.59 1.59 -- (2.84)
Year ended 3/31/1998#.......... 11.70 0.02 5.27 5.29 (0.01) (3.68)
Year ended 3/31/1997#.......... 13.43 0.05 1.66 1.71 (0.05) (3.39)
Period ended 3/31/1996*........ 14.24 0.02 0.38 0.40 (0.02) (1.19)
Year ended 11/30/1995.......... 11.23 0.09 3.28 3.37 (0.10) (0.26)
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited).................. $14.43 $(0.04) $(0.61) $(0.65) $ -- $(0.52)
Year ended 3/31/2000........... 11.97 (0.08) 3.42 3.34 -- (0.88)
Year ended 3/31/1999#.......... 13.26 (0.03) 1.58 1.55 -- (2.84)
Year ended 3/31/1998#.......... 11.67 (0.01) 5.28 5.27 -- (3.68)
Year ended 3/31/1997#.......... 13.41 0.02 1.65 1.67 (0.02) (3.39)
Period ended 3/31/1996*........ 14.22 0.01 0.38 0.39 (0.01) (1.19)
Year ended 11/30/1995.......... 11.21 0.06 3.28 3.34 (0.07) (0.26)
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited).................. $13.58 $(0.09) $(0.57) $(0.66) $ -- $(0.52)
Year ended 3/31/2000........... 11.39 (0.17) 3.24 3.07 -- (0.88)
Year ended 3/31/1999#.......... 12.83 (0.11) 1.51 1.40 -- (2.84)
Year ended 3/31/1998#.......... 11.47 (0.10) 5.14 5.04 -- (3.68)
Year ended 3/31/1997#.......... 13.31 (0.08) 1.63 1.55 -- (3.39)
Period ended 3/31/1996*........ 14.15 (0.02) 0.37 0.35 -- (1.19)
Year ended 11/30/1995.......... 11.17 (0.03) 3.27 3.24 -- (0.26)
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $13.70 $(0.09) $(0.57) $(0.66) $ -- $(0.52)
Year ended 3/31/2000........... 11.48 (0.16) 3.26 3.10 -- (0.88)
Year ended 3/31/1999#.......... 12.92 (0.11) 1.51 1.40 -- (2.84)
Year ended 3/31/1998#.......... 11.50 (0.08) 5.18 5.10 -- (3.68)
Year ended 3/31/1997#.......... 13.26 (0.01) 1.64 1.63 -- (3.39)
Period ended 3/31/1996*........ 14.09 0.00## 0.36 0.36 -- (1.19)
Year ended 11/30/1995.......... 11.14 (0.03) 3.24 3.21 -- (0.26)
</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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE> 87
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.52) $13.44 (4.28)% $746,098 0.95%+(a)(b) (0.40)%+ 38% 0.95%+(a)
(0.88) 14.59 29.90 816,371 0.96(a)(b) (0.38) 39 0.96(a)
(2.84) 12.05 14.99 737,620 0.96(a) (0.04) 39 0.96(a)
(3.69) 13.30 53.89 872,150 0.95(a)(b) 0.13 113 0.95(a)
(3.44) 11.70 11.88 533,168 0.96(b) 0.39 75 0.96
(1.21) 13.43 3.14 839,300 0.96+ 0.38+ 25 0.96+
(0.36) 14.24 30.96 867,361 0.98 0.71 80 0.98
$(0.52) $13.26 (4.47)% $ 55,499 1.20%+(a)(b) (0.65)%+ 38% 1.20%+(a)
(0.88) 14.43 29.41 61,756 1.21(a)(b) (0.63) 39 1.21(a)
(2.84) 11.97 14.70 52,987 1.21(a) (0.29) 39 1.21(a)
(3.68) 13.26 53.83 43,380 1.20(a)(b) (0.12) 113 1.20(a)
(3.41) 11.67 11.58 20,465 1.21(b) 0.14 75 1.21
(1.20) 13.41 3.02 18,311 1.21+ 0.13+ 25 1.21+
(0.33) 14.22 30.70 16,770 1.23 0.46 80 1.23
$(0.52) $12.40 (4.77)% $ 69,609 1.95%+(a)(b) (1.40)%+ 38% 1.95%+(a)
(0.88) 13.58 28.42 75,844 1.96(a)(b) (1.38) 39 1.96(a)
(2.84) 11.39 13.86 66,338 1.96(a) (1.04) 39 1.96(a)
(3.68) 12.83 52.52 59,496 1.95(a)(b) (0.87) 113 1.95(a)
(3.39) 11.47 10.68 41,933 1.96(b) (0.61) 75 1.96
(1.19) 13.31 2.77 41,045 1.96+ (0.62)+ 25 1.96+
(0.26) 14.15 29.80 40,868 1.98 (0.29) 80 1.98
$(0.52) $12.52 (4.72)% $ 4,905 1.95%+(a)(b) (1.40)%+ 38% 1.95%+(a)
(0.88) 13.70 28.46 4,883 1.96(a)(b) (1.38) 39 1.96(a)
(2.84) 11.48 13.76 3,862 1.96(a) (1.04) 39 1.96(a)
(3.68) 12.92 53.02 6,176 1.78(a)(b) (0.70) 113 1.78(a)
(3.39) 11.50 11.39 5,752 1.46(b) (0.11) 75 1.46
(1.19) 13.26 2.86 3,655 1.58+ (0.24)+ 25 1.58+
(0.26) 14.09 29.61 3,322 1.98 (0.29) 80 1.98
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE> 88
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $20.61 $(0.04) $ 0.20 $ 0.16 $ -- $ --
Year ended 3/31/2000#.......... 23.36 0.03 (0.03) 0.00 (0.01) (2.74)
Year ended 3/31/1999........... 22.17 0.02 3.22 3.24 (0.01)### (2.04)
Year ended 3/31/1998#.......... 18.47 0.08 7.88 7.96 (0.03) (4.23)
Year ended 3/31/1997........... 17.19 0.14 2.79 2.93 (0.14) (1.51)
Period ended 3/31/1996*........ 17.06 0.05 0.35 0.40 (0.04) (0.23)
Year ended 11/30/1995.......... 13.08 0.10 3.96 4.06 (0.08) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited).................. $20.43 $(0.07) $ 0.22 $ 0.15 $ -- $ --
Year ended 3/31/2000#.......... 23.23 (0.02) (0.04) (0.06) -- (2.74)
Year ended 3/31/1999........... 22.09 (0.03) 3.21 3.18 -- (2.04)
Year ended 3/31/1998#.......... 18.44 0.02 7.87 7.89 (0.01) (4.23)
Year ended 3/31/1997........... 17.16 0.08 2.80 2.88 (0.09) (1.51)
Period ended 3/31/1996*........ 17.04 0.04 0.35 0.39 (0.04) (0.23)
Year ended 11/30/1995.......... 13.06 0.09 3.96 4.05 (0.07) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited).................. $19.51 $(0.14) $ 0.21 $ 0.07 $ -- $ --
Year ended 3/31/2000#.......... 22.47 (0.18) (0.04) (0.22) -- (2.74)
Year ended 3/31/1999........... 21.57 (0.17) 3.11 2.94 -- (2.04)
Year ended 3/31/1998#.......... 18.20 (0.12) 7.72 7.60 -- (4.23)
Year ended 3/31/1997........... 17.00 (0.05) 2.76 2.71 -- (1.51)
Period ended 3/31/1996*........ 16.89 (0.01) 0.35 0.34 -- (0.23)
Year ended 11/30/1995.......... 13.02 0.03 3.87 3.90 (0.03) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $19.90 $(0.14) $ 0.21 $ 0.07 $ -- $ --
Year ended 3/31/2000#.......... 22.86 (0.18) (0.04) (0.22) -- (2.74)
Year ended 3/31/1999........... 21.92 (0.17) 3.15 2.98 -- (2.04)
Year ended 3/31/1998#.......... 18.41 (0.09) 7.83 7.74 -- (4.23)
Year ended 3/31/1997........... 17.10 0.04 2.79 2.83 (0.01) (1.51)
Period ended 3/31/1996*........ 16.97 0.01 0.35 0.36 -- (0.23)
Period ended 11/30/1995**...... 14.08 0.00## 2.92 2.92 (0.03) --
</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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
** Aggressive Growth Investor C Shares commenced operations on May 10, 1995.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
### Amount includes distributions in excess of net investment income of less
than $0.01 per share.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 89
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $20.77 0.78% $245,349 0.98%+(a) (0.43)%+ 65% 0.98%+(a)
(2.75) 20.61 (0.16) 328,219 0.98(a)(b) 0.15 79 0.98(a)
(2.05) 23.36 15.74 412,176 0.97(a)(b) 0.12 72 0.97(a)
(4.26) 22.17 48.65 132,504 0.98(a)(b) 0.37 79 0.98+(a)
(1.65) 18.47 17.00 100,260 1.04(b) 0.70 120 1.04
(0.27) 17.19 2.44 116,469 1.02+ 0.82+ 47 1.02+
(0.08) 17.06 31.13 109,939 1.30 0.85 124 1.30
$ -- $20.58 0.73% $ 42,658 1.23%+(a) (0.68)%+ 65% 1.23%+(a)
(2.74) 20.43 (0.41) 47,624 1.23(a)(b) (0.10) 79 1.23(a)
(2.04) 23.23 15.49 67,356 1.22(a)(b) (0.13) 72 1.22(a)
(4.24) 22.09 48.28 21,725 1.23(a)(b) 0.12 79 1.23(a)
(1.60) 18.44 16.76 6,837 1.29(b) 0.45 120 1.29
(0.27) 17.16 2.35 4,722 1.12+ 0.72+ 47 1.12+
(0.07) 17.04 31.05 3,234 1.40 0.75 124 1.40
$ -- $19.58 0.36% $ 33,530 1.98%+(a) (1.43)%+ 65% 1.98%+(a)
(2.74) 19.51 (1.19) 39,680 1.98(a)(b) (0.85) 79 1.98(a)
(2.04) 22.47 14.69 50,797 1.97(a)(b) (0.88) 72 1.97(a)
(4.23) 21.57 47.14 38,079 1.98(a)(b) (0.63) 79 1.98(a)
(1.51) 18.20 15.86 20,257 2.04(b) (0.30) 120 2.04
(0.23) 17.00 2.08 18,412 2.02+ (0.18)+ 47 2.02+
(0.03) 16.89 29.94 16,874 2.30 (0.15) 124 2.30
$ -- $19.97 0.35% $ 1,133 1.98%+(a) (1.43)%+ 65% 1.98%+(a)
(2.74) 19.90 (1.16) 1,496 1.98(a)(b) (0.85) 79 1.98(a)
(2.04) 22.86 14.64 1,629 1.97(a)(b) (0.88) 72 1.97(a)
(4.23) 21.92 47.38 1,199 1.81(a)(b) (0.46) 79 1.81(a)
(1.52) 18.41 16.45 446 1.54(b) 0.20 120 1.54
(0.23) 17.10 2.19 283 1.65+ 0.19+ 47 1.65+
(0.03) 16.97 20.78 322 2.30+ (0.15)+ 124 2.30+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 90
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DISTRIBUTIONS NET ASSET
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE REALIZED END OF
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS GAINS PERIOD
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FOCUSED EQUITIES
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)................... $22.59 $(0.02) $(1.06) $(1.08) $(0.08) $21.43
Year ended 3/31/2000#........... 16.69 (0.01) 6.14 6.13 (0.23) 22.59
Year ended 3/31/1999#........... 12.13 (0.01) 4.58 4.57 (0.01) 16.69
Period ended 3/31/1998*#........ 10.00 (0.01) 2.14 2.13 -- 12.13
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)................... $22.56 $(0.05) $(1.05) $(1.10) $(0.08) $21.38
Year ended 3/31/2000#........... 16.73 (0.03) 6.09 6.06 (0.23) 22.56
Year ended 3/31/1999#........... 12.14 (0.04) 4.64 4.60 (0.01) 16.73
Period ended 3/31/1998*#........ 10.00 (0.01) 2.15 2.14 -- 12.14
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)................... $22.26 $(0.12) $(1.04) $(1.16) $(0.08) $21.02
Year ended 3/31/2000#........... 16.62 (0.09) 5.96 5.87 (0.23) 22.26
Year ended 3/31/1999#........... 12.13 (0.12) 4.62 4.50 (0.01) 16.62
Period ended 3/31/1998*#........ 10.00 (0.04) 2.17 2.13 -- 12.13
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)................... $22.33 $(0.12) $(1.05) $(1.17) $(0.08) $21.08
Year ended 3/31/2000#........... 16.67 (0.08) 5.97 5.89 (0.23) 22.33
Year ended 3/31/1999#........... 12.13 (0.14) 4.69 4.55 (0.01) 16.67
Period ended 3/31/1998*#........ 10.00 (0.04) 2.17 2.13 -- 12.13
</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.
* Focused Equities Primary A, Investor A, Investor B and Investor C Shares
commenced operations on December 31, 1997.
# Per share net investment income has been calculated using the monthly
average shares method.
### Amount represents results prior to conversion to a master-feeder structure.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 91
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(4.74)% $ 482,000 1.08%+ (0.20)%+ -- 1.08%+
37.13 326,745 1.16(a) (0.35) 53%### 1.16(a)
37.73 105,458 1.06(a) 0.05 177 1.06(a)
21.30 8,808 1.52+(a) (0.30)+ 25 1.52+(a)
(4.83)% $ 766,610 1.33%+ (0.45)%+ -- 1.33%+
36.62 690,166 1.41(a) (0.60) 53%### 1.41(a)
37.94 238,137 1.31(a) (0.20) 177 1.31(a)
21.40 6,056 1.77+(a) (0.55)+ 25 1.77+(a)
(5.17)% $1,056,426 2.08%+ (1.20)%+ -- 2.08%+
35.71 1,003,840 2.16(a) (1.35) 53%### 2.16(a)
37.15 306,365 2.06(a) (0.95) 177 2.06(a)
21.30 20,446 2.52+(a) (1.30)+ 25 2.52+(a)
(5.20)% $ 284,474 2.08%+ (1.20)%+ -- 2.08%+
35.72 247,509 2.16(a) (1.35) 53%### 2.16(a)
37.56 13,682 2.06(a) (0.95) 177 2.06(a)
21.30 469 2.52+(a) (1.30)+ 25 2.52+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 92
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DISTRIBUTIONS NET ASSET
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET VALUE
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE REALIZED END OF
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS GAINS PERIOD
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MIDCAP GROWTH
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)................... $22.41 $(0.04) $ 1.24 $ 1.20 $(1.69) $21.92
Year ended 3/31/2000#........... 13.31 (0.07) 9.81 9.74 (0.64) 22.41
Year ended 3/31/1999#........... 16.56 (0.04) (0.94) (0.98) (2.27) 13.31
Year ended 3/31/1998#........... 12.86 (0.06) 5.55 5.49 (1.79) 16.56
Year ended 3/31/1997#........... 14.04 (0.04) 0.20 0.16 (1.34) 12.86
Period ended 3/31/1996#*........ 14.28 0.00## 1.26 1.26 (1.50) 14.04
Year ended 11/30/1995........... 11.41 0.01 3.26 3.27 (0.40) 14.28
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)................... $21.87 $(0.06) $ 1.18 $ 1.12 $(1.69) $21.30
Year ended 3/31/2000#........... 13.04 (0.12) 9.59 9.47 (0.64) 21.87
Year ended 3/31/1999#........... 16.30 (0.07) (0.92) (0.99) (2.27) 13.04
Year ended 3/31/1998#........... 12.69 (0.10) 5.50 5.40 (1.79) 16.30
Year ended 3/31/1997#........... 13.91 (0.07) 0.19 0.12 (1.34) 12.69
Period ended 3/31/1996#*........ 14.17 (0.01) 1.25 1.24 (1.50) 13.91
Year ended 11/30/1995........... 11.35 (0.01) 3.23 3.22 (0.40) 14.17
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)................... $20.38 $(0.13) $ 1.10 $ 0.97 $(1.69) $19.66
Year ended 3/31/2000#........... 12.28 (0.22) 8.96 8.74 (0.64) 20.38
Year ended 3/31/1999#........... 15.58 (0.15) (0.88) (1.03) (2.27) 12.28
Year ended 3/31/1998#........... 12.29 (0.20) 5.28 5.08 (1.79) 15.58
Year ended 3/31/1997#........... 13.61 (0.18) 0.20 0.02 (1.34) 12.29
Period ended 3/31/1996#*........ 13.93 (0.05) 1.23 1.18 (1.50) 13.61
Year ended 11/30/1995........... 11.24 (0.07) 3.16 3.09 (0.40) 13.93
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)................... $20.47 $(0.13) $ 1.11 $ 0.98 $(1.69) $19.76
Year ended 3/31/2000#........... 12.33 (0.22) 9.00 8.78 (0.64) 20.47
Year ended 3/31/1999#........... 15.63 (0.15) (0.88) (1.03) (2.27) 12.33
Year ended 3/31/1998#........... 12.31 (0.18) 5.29 5.11 (1.79) 15.63
Year ended 3/31/1997#........... 13.56 (0.10) 0.19 0.09 (1.34) 12.31
Period ended 3/31/1996#*........ 13.87 (0.03) 1.22 1.19 (1.50) 13.56
Year ended 11/30/1995........... 11.20 (0.08) 3.15 3.07 (0.40) 13.87
</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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 93
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES ---------------
RATIO OF INCLUDING RATIO OF RATIO OF
NET ASSETS OPERATING INTEREST NET INVESTMENT OPERATING
END OF EXPENSES TO EXPENSE INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET TO AVERAGE AVERAGE NET TURNOVER AVERAGE
RETURN++ (000) ASSETS NET ASSETS ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
6.76% $288,307 0.98%+(a) --% (0.38)%+ 23% 0.98%+(a)
75.34 281,951 1.00(a)(b) -- (0.45) 46 1.00(a)
(7.21) 177,861 0.98(a)(b) -- (0.29) 43 0.98(a)
45.09 318,584 0.98(a) 0.99 (0.42) 76 0.98(a)
0.48 267,319 0.98(a) -- (0.26) 93 0.98(a)
9.87 295,764 0.99+ -- (0.06)+ 39 0.99+
29.95 269,484 0.98 -- 0.08 139 0.98
6.54% $ 22,516 1.23%+(a) --% (0.63)%+ 23% 1.23%+(a)
74.82 22,741 1.25(a)(b) -- (0.70) 46 1.25(a)
(7.41) 18,042 1.23(a)(b) -- (0.54) 43 1.23(a)
44.86 21,591 1.23(a) -- (0.67) 76 1.23(a)
0.18 12,126 1.23(a) -- (0.51) 93 1.23(a)
9.80 7,802 1.24+ -- (0.31)+ 39 1.24+
29.65 5,765 1.23 -- (0.17) 139 1.23
6.27% $ 56,336 1.98%+(a) --% (1.38)%+ 23% 1.98%+(a)
73.47 49,606 2.00(a)(b) -- (1.45) 46 2.00(a)
(8.10) 33,245 1.98(a)(b) -- (1.29) 43 1.98(a)
43.64 45,451 1.98(a) 1.99 (1.42) 76 1.98(a)
(0.57) 33,342 1.98(a) -- (1.26) 93 1.98(a)
9.52 34,989 1.99+ -- (1.06)+ 39 1.99+
28.75 32,349 1.98 -- (0.92) 139 1.98
6.29% $ 3,624 1.98%+(a) --% (1.38)%+ 23% 1.98%+(a)
73.50 2,628 2.00(a)(b) -- (1.45) 46 2.00(a)
(8.08) 1,383 1.98(a)(b) -- (1.29) 43 1.98(a)
43.80 2,266 1.81(a) 1.82 (1.25) 76 1.81(a)
(0.04) 1,437 1.48(a) -- (0.76) 93 1.48(a)
9.64 936 1.61+ -- (0.68)+ 39 1.61+
28.67 805 1.98 -- (0.92) 139 1.98
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 94
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/
VALUE NET AND UNREALIZED (DECREASE) IN NET ASSET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE VALUE
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS END OF PERIOD
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
21ST CENTURY
PRIMARY A SHARES
Period ended 9/30/2000*# (unaudited)......... $10.00 $(0.02) $0.11 $0.09 $10.09
INVESTOR A SHARES
Period ended 9/30/2000*# (unaudited)......... $10.00 $(0.04) $0.12 $0.08 $10.08
INVESTOR B SHARES
Period ended 9/30/2000*# (unaudited)......... $10.00 $(0.08) $0.12 $0.04 $10.04
INVESTOR C SHARES
Period ended 9/30/2000*# (unaudited)......... $10.00 $(0.07) $0.11 $0.04 $10.04
</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.
* 21st Century Primary A, Investor A, Investor B and Investor C Shares
commenced operations on April 10, 2000.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 95
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
0.90% $ 6,939 1.34%+(a) (0.44)%+ 214% 1.34%+(a)
0.80% $30,347 1.59%+(a) (0.69)%+ 214% 1.59%+(a)
0.40% $72,721 2.34%+(a) (1.44)%+ 214% 2.34%+(a)
0.40% $ 9,246 2.34%+(a) (1.44)%+ 214% 2.34%+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 96
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMALL COMPANY
PRIMARY A SHARES*
Six months ended 9/30/2000#
(unaudited).................. $22.66 $(0.05) $(0.19) $(0.24) $ -- $(1.22)
Year ended 3/31/2000#.......... 11.50 (0.10) 11.29 11.19 -- (0.03)
Year ended 3/31/1999#.......... 15.79 (0.05) (3.11) (3.16) -- (1.13)
Period ended 3/31/1998......... 12.07 0.01 4.43 4.44 (0.01) (0.71)
Period ended 5/16/1997......... 10.65 0.04 1.47 1.51 (0.04) (0.05)
Period ended 8/31/1996**....... 10.00 0.09 0.64 0.73 (0.08) --
INVESTOR A SHARES*
Six months ended 9/30/2000#
(unaudited).................. $22.44 $(0.07) $(0.18) $(0.25) $ -- $(1.22)
Year ended 3/31/2000#.......... 11.43 (0.15) 11.19 11.04 -- (0.03)
Year ended 3/31/1999#.......... 15.74 (0.07) (3.11) (3.18) -- (1.13)
Period ended 3/31/1998......... 12.05 (0.02) 4.42 4.40 -- (0.71)
Period ended 5/16/1997......... 10.64 0.03 1.46 1.49 (0.03) (0.05)
Period ended 8/31/1996**....... 10.00 0.05 0.64 0.69 (0.05) --
INVESTOR B SHARES*
Six months ended 9/30/2000#
(unaudited).................. $21.94 $(0.15) $(0.18) $(0.33) $ -- $(1.22)
Year ended 3/31/2000#.......... 11.23 (0.25) 10.99 10.74 -- (0.03)
Year ended 3/31/1999#.......... 15.59 (0.11) (3.12) (3.23) -- (1.13)
Period ended 3/31/1998......... 12.03 (0.08) 4.35 4.27 -- (0.71)
Period ended 5/16/1997......... 10.65 (0.03) 1.46 1.43 -- (0.05)
Period ended 8/31/1996**....... 10.00 0.01 0.65 0.66 (0.01) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $22.21 $(0.15) $(0.18) $(0.33) $ -- $(1.22)
Year ended 3/31/2000#.......... 11.38 (0.23) 11.09 10.86 -- (0.03)
Year ended 3/31/1999#.......... 15.74 (0.12) (3.11) (3.23) -- (1.13)
Period ended 3/31/1998***...... 15.18 (0.08) 1.35 1.27 -- (0.71)
</TABLE>
---------------
+ 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.
* The financial information for the fiscal periods prior to May 23, 1997
reflects the financial information for the Pilot Small Capitalization Equity
Fund Pilot, Class A and Class B Shares, which were reorganized into the
Small Company Primary A, Investor A and Investor B Shares, respectively, as
of the close of business on May 23, 1997. Prior to May 23, 1997, the
investment manager to Small Company was Boatmen's Trust Company. Effective
May 23, 1997, the investment manager to Small Company became TradeStreet
Investment Associates, Inc. (now known as Banc of America Capital
Management, Inc.)
** Represents the period from December 12, 1995 (commencement of operations) to
August 31, 1996.
*** Small Company Investor C Shares commenced operations on September 22, 1997.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 97
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL OF PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(1.22) $21.20 0.11% $756,237 1.15%+(a) (0.50)%+ 22% 1.20%+(a)
(0.03) 22.66 97.46 647,825 1.13(a)(b) (0.65) 63 1.22(a)
(1.13) 11.50 (21.05) 327,981 0.95(a) (0.42) 87 1.22(a)
(0.72) 15.79 37.27 235,427 0.95+(a) 0.05+ 59 1.26+(a)
(0.09) 12.07 14.21 109,450 0.98+ 0.54+ 48 1.41+
(0.08) 10.65 7.37 70,483 1.00+ 1.06+ 31 1.54+
$(1.22) $20.97 0.07% $225,962 1.40%+(a) (0.75)%+ 22% 1.45%+(a)
(0.03) 22.44 96.91 245,425 1.38(a)(b) (0.90) 63 1.47(a)
(1.13) 11.43 (21.32) 16,143 1.20(a) (0.67) 87 1.47(a)
(0.71) 15.74 37.02 6,772 1.20+(a) (0.20)+ 59 1.51+(a)
(0.08) 12.05 13.98 3,697 1.23+ 0.30+ 48 1.66+
(0.05) 10.64 6.88 2,611 1.25+ 0.66+ 31 1.65+
$(1.22) $20.39 (0.32)% $ 16,143 2.15%+(a) (1.50)%+ 22% 2.20%+(a)
(0.03) 21.94 95.79 13,839 2.13(a)(b) (1.65) 63 2.22(a)
(1.13) 11.23 (21.86) 5,127 1.95(a) (1.42) 87 2.22(a)
(0.71) 15.59 36.06 3,384 1.87+(a) (0.87)+ 59 2.18+(a)
(0.05) 12.03 13.43 2,635 1.97+ (0.45)+ 48 2.41+
(0.01) 10.65 6.65 1,878 2.01+ (0.07)+ 31 2.44+
$(1.22) $20.66 (0.32)% $ 3,881 2.15%+(a) (1.50)%+ 22% 2.20%+(a)
(0.03) 22.21 95.76 3,588 2.13(a)(b) (1.65) 63 2.22(a)
(1.13) 11.38 (21.66) 1,951 1.70(a) (1.17) 87 2.22(a)
(0.71) 15.74 8.75 3,122 1.95+(a) (0.95)+ 59 2.26+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 98
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust"), Nations Fund, Inc. (the "Company"), Nations
Reserves ("Reserves") and Nations Funds Trust ("Funds Trust") are each
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company. At September 30, 2000, the Trust
offered thirty-four separate portfolios, the Company offered six separate
portfolios, Reserves offered sixteen separate portfolios and Funds Trust offered
five separate portfolios. These financial statements pertain only to certain
domestic stock portfolios of the Trust, the Company, Reserves and Funds Trust:
Convertible Securities Fund, Balanced Assets Fund, Asset Allocation Fund, Equity
Income Fund, Value Fund, Growth & Income Fund, Blue Chip Fund, Strategic Growth
Fund, Capital Growth Fund, Aggressive Growth Fund (formerly Disciplined Equity
Fund), Focused Equities Fund, MidCap Growth Fund, 21st Century Fund and Small
Company Fund (each a "Fund" and collectively, the "Funds"). Financial statements
for the other portfolios of the Trust, the Company, Reserves and Funds 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. Seafirst Shares of Asset Allocation Fund and Blue Chip Fund were
converted into Investor A Shares on June 23, 2000. Shareholders of a Fund have
equal voting rights on matters affecting all shareholders of the Fund. In
addition, each class of shares of a Fund has exclusive voting rights on matters
that relate solely to that class and separate voting rights on matters in which
the interests of one class differ from the interests of any other class.
Growth & Income Fund, Blue Chip Fund and Focused Equities Fund (the "Feeder
Funds") seek to achieve their investment objectives by investing substantially
all of their assets in Growth & Income Master Portfolio, Blue Chip Master
Portfolio and Focused Equities Master Portfolio, respectively (the "Master
Portfolios"), each a series of Nations Master Investment Trust (the "Master
Trust"), another open-end management investment company in the Nations Funds
family. The Master Portfolios each have the same investment objective as that of
its corresponding Feeder Fund. The value of the Feeder Funds' investments in the
respective Master Portfolios included in the Statements of net assets reflect
the Feeder Funds' proportionate beneficial interests in the net assets of the
respective Master Portfolios (97.8% at September 30, 2000 for Growth & Income
Master Portfolio, 95.2% for Blue Chip Master Portfolio and 98.9% for Focused
Equities Master Portfolio, respectively). The financial statements of the Master
Portfolios, including their schedules of investments, are included elsewhere
within this report and should be read in conjunction with the Feeder Funds'
financial statements. Other funds not registered under the 1940 Act managed by
Banc of America Advisors, Inc. ("BAAI"), whose financial statements are not
presented here, also invest in the Master Portfolios.
On April 10, 2000, 21st Century Fund commenced operations in a master-feeder
structure. The Fund seeks to achieve its investment objective by investing
substantially all of its assets in 21st Century Master Portfolio of the Master
Trust, which has the same investment objective as the Fund. Because the value of
the Fund's investment in the 21st Century Master Portfolio at September 30, 2000
represented substantially all of the beneficial interests in the 21st Century
Master Portfolio, financial statements for the 21st Century Master Portfolio
have not been prepared and references in this report to 21st Century Fund should
be read to include references to the corresponding Master Portfolio.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
certain 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 traded on a recognized exchange or on NASDAQ
are valued at the last sale price on the exchange or market on which such
securities are primarily traded. Securities traded only over-the-counter are
valued at the last sale price, or if no sale occurred on such day, at the mean
of the current bid and asked prices. Certain securities may be valued using
broker quotations or on the basis of prices provided by pricing services.
Restricted securities, securities for which market quotations are not readily
available, and certain other assets may be valued under procedures adopted by
the Board of Trustees/Directors. Short-term investments that mature in 60 days
or less are valued at amortized cost, which approximates current market value.
The valuation of each Feeder Fund's investment in its corresponding Master
Portfolio is based on the reported net asset value of that Master Portfolio. The
Master
94
<PAGE> 99
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Portfolios use valuation policies consistent with those described above.
Futures contracts: All Funds may invest in futures contracts. Upon entering
into a futures contract, a Fund is required to deposit with the broker an amount
of cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the market value of the contract. When the contracts are
closed, a Fund records a realized gain or loss equal to the difference between
the value of the contracts on the closing date and the value of the contracts
when originally entered into.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts, that a change in
the value of the contract may not correlate with changes in the value of the
underlying securities, or that the counterparty to a contract may default on its
obligation to perform.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on ex-
dividend date. Each Fund's investment income and realized and unrealized gains
and losses are allocated among its share classes based upon the relative net
assets of each class of shares.
The Feeder Funds record their share of the investment income and realized and
unrealized gains and losses reported by the Master Portfolios on a daily basis.
The investment income and realized and unrealized gains and losses are allocated
daily to investors in the Master Portfolios based upon the value of their
investments in the Master Portfolios.
Dividends and distributions to shareholders: Distributions from net investment
income are declared and paid each calendar quarter by the Convertible
Securities, Balanced Assets, Asset Allocation, Growth & Income, Blue Chip,
Focused Equities, MidCap Growth and 21st Century Funds; all other Funds declare
and pay distributions monthly. Each Fund will distribute net realized capital
gains (including net short-term capital gains) at least annually after the
fiscal year in which the capital gains were earned, unless offset by any
available capital loss carryforward. Income distributions and capital gain
distributions on a Fund level are determined in accordance with federal income
tax regulations which may differ from accounting principles generally accepted
in the United States of America.
Federal income tax: Each Fund intends to continue to qualify as a regulated
investment company by complying with the applicable requirements of the Internal
Revenue Code of 1986, as amended, and by distributing substantially all of its
earnings to its shareholders. Therefore, no provision is made for federal income
or excise taxes.
Expenses: General expenses of the Trust, the Company, Reserves and Funds 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. The Feeder Funds record their share of the expenses reported by the
Master Portfolios on a daily basis. The expenses are allocated daily to
investors in the Master Portfolios based upon the value of the Feeder Funds'
investments in the Master Portfolios.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Each of the Trust, the Company, Reserves and Funds Trust has entered into an
investment advisory agreement (the "Investment Advisory Agreements") with BAAI,
a wholly-owned subsidiary of Bank of America, N.A. ("Bank of America"), which in
turn is a wholly-owned banking subsidiary of Bank of America Corporation, a bank
holding company organized as a Delaware corporation, pursuant to which BAAI
provides investment advisory services to the Funds. Under the terms of the
Investment Advisory Agreements, BAAI is entitled to receive an advisory fee,
calculated daily and payable
95
<PAGE> 100
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
monthly, based on the following annual rates multiplied by the average daily net
assets of each Fund:
<TABLE>
<CAPTION>
ANNUAL
RATE
------
<S> <C>
Convertible Securities, Balanced Assets, Asset
Allocation, Value, Strategic Growth, Capital
Growth, Aggressive Growth, MidCap Growth.... 0.65%
21st Century.................................. 0.75%
Small Company................................. 0.90%
</TABLE>
<TABLE>
<CAPTION>
FEES ON
NET ASSETS FEES ON FEES ON
UP TO NET ASSETS NET ASSETS
$100 BETWEEN $100 EXCEEDING
MILLION AND $250 MILLION $250 MILLION
----------------------------------------------
<S> <C> <C> <C>
Equity Income........ 0.65% 0.60% 0.50%
</TABLE>
The Feeder Funds indirectly pay for investment advisory services through their
investments in their corresponding Master Portfolios (See Note 2 of Notes to
financial statements of the Master Portfolios).
Each of the Trust, the Company, Reserves and Funds Trust has entered into a
sub-advisory agreement with BAAI and Banc of America Capital Management, Inc.
("BACAP"), a wholly-owned subsidiary of Bank of America, pursuant to which BACAP
is entitled to receive a sub-advisory fee from BAAI at the following maximum
annual rate of each Fund's average daily net assets:
<TABLE>
<CAPTION>
ANNUAL
RATE
------
<S> <C>
Equity Income................................. 0.20%
Convertible Securities, Balanced Assets,
Value, Strategic Growth, Capital Growth,
Aggressive Growth, MidCap Growth, Small
Company..................................... 0.25%
</TABLE>
Reserves has, on behalf of the Asset Allocation Fund, entered into a
sub-advisory agreement with BAAI and BACAP, pursuant to which BACAP is entitled
to receive a sub-advisory fee from BAAI for management of the fixed income and
money market portions of the Fund at the maximum annual rate of 0.25% of the
Fund's average daily net assets.
Reserves has, on behalf of the Asset Allocation Fund, entered into a
sub-advisory agreement with BAAI and Chicago Equity Partners LLC ("Chicago
Equity"), pursuant to which Chicago Equity is entitled to receive a sub-advisory
fee from BAAI for management of the equity portion of the Fund at the maximum
annual rate of 0.25% of the Fund's average daily net assets.
Funds Trust has, on behalf of the 21st Century Fund, entered into a sub-advisory
agreement with BAAI and Marsico Capital Management, LLC ("Marsico"), pursuant to
which Marsico is entitled to receive a sub-advisory fee from BAAI at the maximum
annual rate of 0.45% of the Fund's average daily net assets. Marsico Management
Holdings, LLC, a partially-owned subsidiary of Bank of America, owns 50% of the
equity of Marsico. On June 28, 2000, the Bank of America announced its intention
to purchase the remaining 50% equity interest in Marsico. The proposed purchase
is not expected to result in any change in the Marsico personnel who manage the
Fund or in the way that the Fund is managed.
The Feeder Funds indirectly pay for sub-advisory services through their
investments in their corresponding Master Portfolios (See Note 2 of Notes to
financial statements of the Master Portfolios).
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust, the
Company, Reserves and Funds Trust. Under the co-administration agreements,
Stephens and BAAI are currently entitled to receive a combined fee, computed
daily and paid monthly, at the maximum annual rate of 0.23% of the average daily
net assets of all Funds except for Blue Chip Fund, which pays a monthly fee at
the maximum annual rate of 0.18% of its average daily net assets and Growth &
Income and Focused Equities Funds, which pay a monthly fee at the maximum annual
rate of 0.13% of their average daily net assets. The Bank of New York ("BNY")
serves as sub-administrator of the Trust, the Company, Reserves and Funds Trust
pursuant to agreements with BAAI. For the six months ended September 30, 2000,
Stephens and BAAI earned 0.06% and 0.08%, respectively, of the Funds' average
daily net assets for their co-administration services.
BAAI and/or the sub-advisers and Stephens may, from time to time, reduce their
fees payable by each Fund. Effective August 1, 2000, BAAI and/or the
sub-advisers and Stephens agreed to reimburse expenses and/or waive their fees
until July 31, 2001 to the extent that total expenses (excluding shareholder
servicing and distribution fees), as a percentage of the respective Fund's
average daily net assets, exceed the following annual rates: 1.15% for the Small
Company Fund and a percentage of Balanced Assets Fund's average daily net
assets, not to exceed the annual rate maintained for the Asset Allocation Fund.
BNY serves as the custodian of the Trust's, the Company's, Reserves' and Funds
Trust's assets. For the
96
<PAGE> 101
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
six months ended September 30, 2000, expenses of the Funds were reduced by
$39,051 under expense offset arrangements with BNY. The Funds could have
invested a portion of the assets utilized in connection with the expense offset
arrangements in an income producing asset if they had not entered into such
arrangements.
No officer, director or employee of Bank of America, BAAI or BACAP, or any
affiliate thereof, receives any compensation from the Trust, the Company,
Reserves and Funds Trust for serving as Trustee/Director or Officer of the
Trust, the Company, Reserves and Funds Trust.
PFPC Inc. ("PFPC") serves as the transfer agent for the Funds' shares. Bank of
America serves as the sub-transfer agent for the Primary A and Primary B Shares
of the Funds. For the six months ended September 30, 2000, Bank of America
earned approximately $27,505 for providing such services.
Stephens also serves as distributor of the Funds' shares. For the six months
ended September 30, 2000, the Funds were informed that the distributor received
$366,794 in front-end sales charges for sales of Investor A Shares and
$1,573,133 in contingent deferred sales charges from redemption of shares which
were subject to such charges. A substantial portion of these fees is paid to
affiliates of Bank of America.
The Trust's, the Company's, Reserves' and Funds Trust's eligible
Trustees/Directors may participate in non-qualified deferred compensation and
retirement plans which may be terminated at any time. All benefits provided
under these plans are unfunded and any payments to plan participants are paid
solely out of the Funds' assets. Income earned on each plan participant's
deferral account is tied to the rate of return of the eligible mutual funds
selected by the participants or, if no funds are selected, to the rate of return
of Nations Treasury Fund, a portfolio of the Company. The expense for the
deferred compensation and retirement plans is included in "Trustees'/Directors'
fees and expenses" in the Statements of operations.
Certain Funds have made daily investments of cash balances in Nations Cash
Reserves, a portfolio of Reserves, pursuant to an exemptive order received from
the Securities and Exchange Commission. For the six months ended September 30,
2000, the Funds earned $4,749,982 in the aggregate from such investments, which
is included in interest income.
A significant portion of each Fund's Primary A Shares represents investments by
fiduciary accounts over which Bank of America has either sole or joint
investment discretion.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
The Trust, the Company, Reserves and Funds Trust each has adopted shareholder
servicing plans and distribution plans for the Investor B and Investor C Shares
of each Fund, a combined distribution and shareholder servicing plan for
Investor A Shares of each Fund and a shareholder servicing plan for Seafirst
Shares of Asset Allocation and Blue Chip Funds. 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 are made at an annual rate, as a
percentage of average daily net assets, set from time to time by the Board of
Trustees/Directors, and are charged as expenses of each Fund directly to the
applicable class. A substantial portion of the expenses incurred pursuant to
these plans is paid to affiliates of Bank of America and BAAI.
At September 30, 2000, the rates in effect and plan limits, as a percentage of
average daily net assets, were as follows:
<TABLE>
<CAPTION>
CURRENT PLAN
RATE LIMIT
----------------
<S> <C> <C>
Investor A Combined Distribution and
Shareholder Servicing Plan......... 0.25% 0.25%
Investor B and Investor C
Shareholder Servicing Plans........ 0.25% 0.25%
Investor B Distribution Plan......... 0.75% 0.75%
Investor C Distribution Plan......... 0.75% 0.75%
Seafirst Shareholder Servicing
Plan*.............................. N/A 0.25%
</TABLE>
---------------
* Seafirst Shares converted into Investor A Shares on June 23, 2000.
4. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government
97
<PAGE> 102
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
securities and short-term investments, for the six months ended September 30,
2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
-----------------------
<S> <C> <C>
Convertible Securities........ $155,444 $ 118,277
Balanced Assets............... 48,136 54,395
Asset Allocation.............. 130,820 124,924
Equity Income................. 382,144 371,827
Value......................... 975,704 1,233,939
Strategic Growth.............. 640,624 253,788
Capital Growth................ 337,519 375,250
Aggressive Growth............. 237,137 343,693
MidCap Growth................. 74,528 84,195
21st Century.................. 270,707 164,640
Small Company................. 278,363 193,411
</TABLE>
The aggregate cost of purchases and proceeds from sales of long-term U.S.
government securities for the six months ended September 30, 2000 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
--------------------
<S> <C> <C>
Balanced Assets................... $11,963 $17,150
Asset Allocation.................. 23,169 37,114
</TABLE>
5. FUTURES CONTRACTS
At September 30, 2000, the following Funds had futures contracts open:
<TABLE>
<CAPTION>
VALUE OF MARKET UNREALIZED
CONTRACT VALUE OF APPRECIATION
NUMBER OF WHEN OPENED CONTRACTS (DEPRECIATION)
DESCRIPTION CONTRACTS (000) (000) (000)
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSET ALLOCATION:
U.S. 5 year Treasury
note (short
position) expiring
December 2000(a)... 255 $25,635 $25,452 $(183)
U.S. 10 year Treasury
note (long
position) expiring
December 2000(a)... 125 12,482 12,527 45
U.S. 30 year Treasury
bond (long
position) expiring
December 2000(a)... 39 3,894 3,847 (47)
</TABLE>
---------------
(a) Securities have been segregated as collateral for the Asset Allocation Fund
for open futures contracts.
6. SHARES OF BENEFICIAL INTEREST/CAPITAL STOCK
As of September 30, 2000, an unlimited number of shares of beneficial interest
without par value were authorized for each of the Trust, Reserves and Funds
Trust and 480,000,000,000 shares of $.001 par value capital stock were
authorized for the Company. The Trust's, Reserves' and Funds Trust's
Declarations of Trust and the Company's Articles of Incorporation authorize the
Board of Trustees/Directors to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedules of capital stock activity.
7. LINES OF CREDIT
The Trust, the Company, Reserves and Funds Trust each participate with other
Nations Funds in an uncommitted line of credit provided by BNY under a line of
credit agreement (the "Agreement"). Advances under the Agreement are taken
primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Interest on borrowings is payable at a specified Federal Funds rate
plus 0.50% on an annualized basis. Each participating Fund maintains a ratio of
no less than 4 to 1 net assets (not including amounts borrowed pursuant to the
Agreement) to the aggregate amount of indebtedness pursuant to the Agreement.
For the six months ended September 30, 2000, borrowings by the Funds under the
Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
---------------------------------------------------------
<S> <C> <C>
Asset Allocation................ $ 33 6.97%
Equity Income................... 168 6.91
Value........................... 516 6.84
Strategic Growth................ 20 7.00
Capital Growth.................. 187 6.61
</TABLE>
The average amount outstanding was calculated based on daily balances during the
period.
The Trust, the Company, Reserves and Funds Trust also participate with other
Nations Funds in a committed line of credit provided by BNY. Interest on
borrowings under the committed line is payable at a specified Federal Funds rate
plus 0.50% on an annualized basis. A facility fee of 0.09% per annum of the
total amounts available under the line of credit is charged, of which each Fund
pays its pro rata share. This fee is paid quarterly in arrears. Each
participating Fund is required to maintain an asset coverage ratio of at least
300% under the terms of the arrangement. For the six months ended September 30,
98
<PAGE> 103
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
2000, there were no borrowings by the Funds under the committed line of credit.
8. SECURITIES LENDING
Under an agreement with BNY, the Funds can lend their securities to approved
brokers, dealers and other financial institutions. Loans are collateralized by
cash, in an amount at least equal to the market value of the securities loaned.
The cash collateral received is invested in Nations Cash Reserves. A portion of
the income generated by the investment of the collateral, net of any rebates
paid by BNY to borrowers, is remitted to BNY as lending agent, and the remainder
is paid to the Fund. Generally, in the event of counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There would be a
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its right to dispose of the collateral. The Fund bears the risk of
loss with respect to the investment of collateral.
At September 30, 2000, the following Funds had securities on loan:
<TABLE>
<CAPTION>
MARKET VALUE
OF LOANED MARKET VALUE
SECURITIES OF COLLATERAL
FUND (000) (000)
----------------------------------------------------------
<S> <C> <C>
Balanced Assets............ $ 202 $ 206
Value...................... 39,947 42,329
Strategic Growth........... 18,208 19,484
Capital Growth............. 32,337 34,209
Aggressive Growth.......... 21,964 22,949
MidCap Growth.............. 61,491 62,963
Small Company.............. 124,569 133,643
</TABLE>
9. CAPITAL LOSS CARRYFORWARD
At March 31, 2000, Balanced Assets Fund had available for federal income tax
purposes unused capital losses expiring March 31, 2007 of $1,459,711.
At March 31, 2000, Balanced Assets Fund utilized capital losses of $1,132,849
during the year.
Under the current tax law, capital and currency losses realized after October 31
may be deferred and treated as occurring on the first day of the following
fiscal year. For the year ended March 31, 2000, the following Funds elected to
defer losses occurring between November 1, 1999 and March 31, 2000 under these
rules:
<TABLE>
<CAPTION>
POST-OCTOBER
CAPITAL/CURRENCY
LOSSES
DEFERRED
FUND (000)
---------------------------------------------------------
<S> <C>
Equity Income.......................... $ 25
Growth & Income........................ 3
Aggressive Growth...................... 3,524
</TABLE>
10. REORGANIZATIONS
ACQUISITION OF PACIFIC HORIZON FUNDS
On May 14, 1999, the Small Company Growth Fund (the "Acquiring Fund"), acquired
the assets and liabilities of the Pacific Horizon Aggressive Growth Fund (the
"Acquired Fund"), in a tax-free reorganization in exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Fund's shareholders. The number and value of shares issued by the Acquiring Fund
are presented in the Schedules of capital stock activity. Net assets and
unrealized appreciation as of the reorganization date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS OF ACQUIRED FUND
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND UNREALIZED
ACQUIRED FUND ACQUIRING FUND AFTER ACQUISITION APPRECIATION
(000) (000) (000) (000)
------------------------------------------------------------------------------
<S> <C> <C> <C>
$164,166
$366,213 $530,379 $12,433
</TABLE>
On May 21, 1999, the Capital Income Fund, Asset Allocation Fund and Blue Chip
Fund, newly established portfolios, acquired the assets and liabilities of the
Pacific Horizon Capital Income Fund, Pacific Horizon Asset Allocation Fund and
Pacific Horizon Blue Chip Fund, respectively, pursuant to a plan of
reorganization approved by its shareholders. The
99
<PAGE> 104
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
acquisition was accomplished by a tax-free exchange of shares of Capital Income
Fund, Asset Allocation Fund and Blue Chip Fund in an amount equal to the value
of the outstanding shares of the Pacific Horizon Capital Income Fund, Pacific
Horizon Asset Allocation Fund and Pacific Horizon Blue Chip Fund, respectively.
The financial statements of the Capital Income Fund, Asset Allocation Fund and
Blue Chip Fund reflect the historical financial results of the Pacific Horizon
Capital Income Fund, Pacific Horizon Asset Allocation Fund and Pacific Horizon
Blue Chip Fund prior to the reorganization.
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS
---------------------------------------------------------------------
<S> <C>
Capital Income Nations Capital Income
A Shares Investor A Shares
B Shares Investor B Shares
K Shares Investor C Shares
Asset Allocation Nations Asset Allocation
A Shares Investor A Shares
B Shares Investor B Shares
K Shares Investor C Shares
SRF Shares Seafirst Shares
Blue Chip Nations Blue Chip
A Shares Investor A Shares
B Shares Investor B Shares
K Shares Investor C Shares
SRF Shares Seafirst Shares
</TABLE>
ACQUISITION OF TIME HORIZON FUNDS
On August 20, 1999, the Asset Allocation Fund (the "Acquiring Fund"), acquired
the assets and liabilities of the Time Horizon Funds, listed below (each an
"Acquired Fund"), in a tax-free reorganization in exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Funds' shareholders. The number and value of shares issued by the Acquiring Fund
are presented in the Schedules of capital stock activity. Net assets and
unrealized appreciation as of the reorganization date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Time Horizon
Allocation Portfolio I $32,506 $293,022 $419,334 $1,890
Asset Time Horizon
Allocation Portfolio II 43,414 293,022 419,334 3,206
Asset Time Horizon
Allocation Portfolio III 50,392 293,022 419,334 5,511
</TABLE>
CHANGE OF REGISTERED INVESTMENT COMPANY
On August 20, 1999, the Growth & Income and Focused Equities Funds, newly
established shell portfolios of Reserves (the "Successor Funds"), acquired the
assets and liabilities of their predecessor funds, which were series of the
Trust, pursuant to a plan of reorganization approved by each predecessor fund's
shareholders. The predecessor funds had the same name, investment objective and
principal investment strategies as the Successor Funds. The acquisition was
accomplished by a tax-free exchange of shares of the Successor Funds in an
amount equal to the value of the outstanding shares of the predecessor funds.
The financial statements of the Successor Funds reflect the historical financial
results of the predecessor funds prior to the reorganizations.
CONVERSION OF COMMON TRUST FUNDS
On May 12, 2000, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets of certain common trust funds, managed by Bank of America,
N.A., also listed below (each an "Acquired Fund"), in a tax-free exchange
100
<PAGE> 105
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
for shares of the Acquiring Fund. The number and value of shares issued by the
Acquiring Fund are presented in the Schedules of capital stock activity. Net
assets and unrealized appreciation as of the conversion date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER CONVERSION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Boatmen's Trust
Company Balanced
Investment Fund $ 13,617 $ 410,438 $ 424,055 $ 1,099
Equity Income Boatmen's Trust
Company Equity
Income Fund 95,694 463,209 558,903 15,874
Equity Income BCA Equity
Income Fund 92,411 463,209 555,620 28,871
Value Boatmen's Trust
Company Equity
Value Fund 119,967 1,364,400 1,484,367 34,539
Value Bank IV Kansas
Stock Fund 47,444 1,364,400 1,411,844 8,399
Strategic Growth BCA Diversified
Stock Fund 307,415 858,884 1,166,299 115,146
Aggressive Growth BCA Retail Trust
Equity Fund 28,949 383,624 412,573 12,864
Small Company Boatmen's Trust
Company Managed
Small
Capitalization
Fund 88,407 769,936 858,343 27,179
</TABLE>
On August 23, 2000, the Boards of Trustees of the Trust and Reserves approved an
Agreement and Plan of Reorganization pursuant to which Asset Allocation Fund
would acquire all of the assets of Balanced Assets Fund in exchange for shares
of Asset Allocation Fund. Additionally, the Board of Trustees of Reserves
approved the reorganization of the Asset Allocation Fund into a new shell fund
of Funds Trust. The principal effects of this reorganization would be to bring
the assets of Balanced Assets into Asset Allocation and to redomicile the Funds
in Delaware, under a Delaware business trust structure that management believes
provides greater flexibility and efficiency in certain corporate and
organizational matters. The Asset Allocation Fund will retain its name,
investment objective and principal investment strategies. If approved by
shareholders, it is anticipated that the reorganization would take place in the
second quarter of 2001.
On August 23, 2000, the Board of Trustees of Reserves approved the
reorganization of the Growth & Income and Focused Equities Funds into new shell
funds of Funds Trust. The principal effect of these reorganizations would be to
redomicile the Funds in Delaware, under a Delaware business trust structure that
management believes provides greater flexibility and efficiency in certain
corporate and organizational matters. The Growth & Income and Focused Equities
Funds will retain their name, investment objectives and principal investment
strategies without change. If approved by shareholders, it is anticipated that
the reorganization would take place in the second quarter of 2001.
101
<PAGE> 106
NATIONS MASTER INVESTMENT TRUST
Nations Marsico Growth & Income Master Portfolio, Nations Blue Chip Master
Portfolio and Nations Marsico Focused Equities Master Portfolio Semi-Annual
Report
SEPTEMBER 30, 2000 (UNAUDITED)
The following pages should be read in conjunction with the Nations Marsico
Growth & Income, Nations Blue Chip and Nations Marsico Focused Equities Funds'
Semi-Annual Report.
102
<PAGE> 107
NATIONS MASTER INVESTMENT TRUST
Nations Marsico Growth & Income Master Portfolio
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.2%
AEROSPACE AND DEFENSE -- 4.2%
197,067 Boeing Company......................... $ 12,415
272,286 General Dynamics Corporation........... 17,103
--------
29,518
--------
AUTOMOTIVE -- 0.1%
29,183 Ford Motor Company(!).................. 739
--------
BEVERAGES -- 3.4%
440,688 Anheuser-Busch Companies, Inc. ........ 18,647
135,303 Coca-Cola Enterprises Inc. ............ 2,156
93,853 Pepsi Bottling Group, Inc. ............ 2,821
--------
23,624
--------
BROADCASTING AND CABLE -- 5.5%
127,641 Clear Channel Communications, Inc.(!).. 7,212
320,469 Comcast Corporation, Class A(!)........ 13,119
229,239 Time Warner Inc. ...................... 17,938
--------
38,269
--------
COMMERCIAL BANKING -- 3.3%
423,790 Citigroup Inc. ........................ 22,911
--------
COMMERCIAL SERVICES -- 0.3%
25,384 Omnicom Group Inc. .................... 1,851
--------
COMPUTER SERVICES -- 2.1%
259,279 America Online Inc. ................... 13,936
10,811 Automatic Data Processing Inc. ........ 723
--------
14,659
--------
COMPUTERS AND OFFICE EQUIPMENT -- 9.8%
451,426 EMC Corporation........................ 44,748
13,144 Sanmina Corporation.................... 1,231
190,744 Sun Microsystems, Inc. ................ 22,269
--------
68,248
--------
CONSUMER CREDIT AND MORTGAGES -- 1.8%
202,744 American Express Company............... 12,317
--------
CONSUMER SERVICES -- 2.3%
433,688 Costco Wholesale Corporation........... 15,152
30,630 Estee Lauder Companies Inc. ........... 1,122
--------
16,274
--------
DEPARTMENT AND DISCOUNT STORES -- 2.3%
337,710 Wal-Mart Stores, Inc. ................. 16,252
--------
DIVERSIFIED ELECTRONICS -- 3.2%
273,309 Flextronics International Ltd. ........ 22,446
--------
DIVERSIFIED MANUFACTURING -- 3.5%
419,297 General Electric Company............... 24,188
--------
ELECTRIC POWER -- NON NUCLEAR -- 0.7%
47,463 Calpine Corporation.................... 4,954
--------
ELECTRICAL EQUIPMENT -- 2.0%
9,050 Celestica Inc.(!)...................... 627
134,455 Sony Corporation, ADR.................. 13,571
--------
14,198
--------
ENERGY -- MISCELLANEOUS -- 0.6%
137,868 Southern Energy, Inc.(!)............... 4,326
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
FINANCE -- MISCELLANEOUS -- 3.5%
215,920 Goldman Sachs Group, Inc.(!)........... $ 24,601
--------
FOOD AND DRUG STORES -- 0.2%
28,946 Safeway, Inc.(!)....................... 1,351
--------
HOUSING AND FURNISHING -- 0.2%
67,191 M.D.C. Holdings, Inc. ................. 1,747
--------
INTEGRATED OIL -- 1.6%
213,375 BP Amoco plc, ADR...................... 11,309
--------
INVESTMENT SERVICES -- 8.5%
33,580 Lehman Brothers Holdings Inc. ......... 4,961
433,152 Merrill Lynch & Company Inc. .......... 28,589
232,809 Morgan Stanley Dean Witter & Company... 21,287
53,561 Northern Trust Corporation............. 4,760
--------
59,597
--------
LODGING AND RECREATION -- 1.8%
173,262 Four Seasons Hotels Inc. .............. 12,681
--------
MEDICAL DEVICES AND SUPPLIES -- 2.8%
200,123 Guidant Corporation(!)................. 14,146
70,769 Priority Healthcare Corporation(!)..... 5,396
--------
19,542
--------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 9.1%
370,541 Cisco Systems, Inc. ................... 20,472
94,570 Corning Inc. .......................... 28,088
255,142 Nortel Networks Corporation............ 15,197
--------
63,757
--------
PHARMACEUTICALS -- 9.5%
200,527 Genentech, Inc. ....................... 37,236
86,694 Merck & Company, Inc. ................. 6,453
506,374 Pfizer Inc. ........................... 22,755
--------
66,444
--------
SEMICONDUCTORS -- 0.9%
30,669 Applied Micro Circuits Corporation(!).. 6,350
--------
SOFTWARE -- 6.4%
99,087 Adobe Systems Inc. .................... 15,383
359,877 Oracle Corporation..................... 28,341
10,077 VERITAS Software Corporation........... 1,431
--------
45,155
--------
SPECIALTY STORES -- 6.6%
578,075 Home Depot Inc. ....................... 30,675
411,784 Tiffany & Company...................... 15,879
--------
46,554
--------
TELECOMMUNICATIONS SERVICES -- 2.0%
384,105 General Motors Corporation, Class H.... 14,281
--------
TOTAL COMMON STOCKS
(Cost $530,426)...................... 688,143
--------
CONVERTIBLE PREFERRED STOCKS -- 0.9%
ENERGY -- MISCELLANEOUS -- 0.9%
100,000 SEI Trust.............................. 6,631
--------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $5,000)......................... 6,631
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE> 108
NATIONS MASTER INVESTMENT TRUST
Nations Marsico Growth & Income Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 0.1%
(Cost $536)
HOUSING AND FURNISHING -- 0.1%
$ 550 M.D.C. Holdings, Inc.,
8.375% 02/01/08........................ $ 523
--------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS
-- 3.6% (Cost $24,996)
FEDERAL HOME LOAN BANK (FHLB) -- 3.6%
25,000 Discount note 10/02/00................. 24,991
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
-------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.4%
(Cost $16,731)
16,731 Nations Cash Reserves#.................. 16,731
--------
TOTAL INVESTMENTS
(Cost $577,689*)............ 105.2% 737,019
--------
OTHER ASSETS AND LIABILITIES
(NET)....................... (5.2)%
Cash................................... $ 2,968
Receivable for investment securities
sold................................. 28,797
Dividends receivable................... 212
Interest receivable.................... 8
Collateral on securities loaned........ (16,641)
Investment advisory fee payable........ (436)
Administration fee payable............. (58)
Payable for investment securities
purchased............................ (51,264)
Accrued Trustees' fees and expenses.... (10)
Accrued expenses and other
liabilities.......................... (47)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................... (36,471)
--------
NET ASSETS.................... 100.0% $700,548
========
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $159,330 on
investment securities was comprised of gross appreciation of $171,241 and
gross depreciation of $11,911 for federal income tax purposes. At
September 30, 2000, the aggregate cost of securities for federal income tax
purposes was $577,689.
(!) Non-income producing security.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $16,641.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE> 109
NATIONS MASTER INVESTMENT TRUST
Nations Blue Chip Master Portfolio
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.3%
AEROSPACE AND DEFENSE -- 1.3%
122,900 Boeing Company....................... $ 7,743
63,200 Northrop Grumman Corporation......... 5,743
----------
13,486
----------
AIRLINES -- 0.3%
57,500 Delta Air Lines, Inc. ............... 2,552
----------
APPAREL AND TEXTILES -- 0.1%
33,300 Liz Claiborne Inc. .................. 1,282
----------
AUTOMOTIVE -- 1.1%
282,505 Ford Motor Company(!)................ 7,151
56,200 General Motors Corporation........... 3,653
----------
10,804
----------
BEVERAGES -- 2.2%
224,200 Anheuser-Busch Companies, Inc. ...... 9,487
61,900 Coca-Cola Company.................... 3,412
201,700 PepsiCo, Inc. ....................... 9,278
----------
22,177
----------
BROADCASTING AND CABLE -- 2.7%
110,900 Time Warner Inc. .................... 8,678
175,400 Viacom Inc., Class B(!).............. 10,261
226,800 Walt Disney Company.................. 8,675
----------
27,614
----------
CHEMICALS -- BASIC -- 1.0%
51,000 Air Products & Chemicals Inc. ....... 1,836
41,300 E.I. duPont de Nemours and Company... 1,711
42,000 Eastman Chemical Company............. 1,551
73,700 Praxair Inc. ........................ 2,756
67,000 Union Carbide Corporation............ 2,529
----------
10,383
----------
COMMERCIAL BANKING -- 6.2%
98,650 Chase Manhattan Corporation.......... 4,556
588,000 Citigroup Inc. ...................... 31,789
273,400 FleetBoston Financial Corporation.... 10,663
23,100 J.P. Morgan & Company Inc. .......... 3,774
148,300 Mellon Financial Corporation......... 6,877
85,900 PNC Bank Corporation................. 5,584
----------
63,243
----------
COMMERCIAL SERVICES -- 0.3%
38,600 Omnicom Group Inc. .................. 2,815
----------
COMPUTER SERVICES -- 1.8%
165,600 America Online Inc. ................. 8,901
85,400 Automatic Data Processing Inc. ...... 5,711
61,800 Paychex, Inc. ....................... 3,245
14,600 Sapient Corporation.................. 594
----------
18,451
----------
COMPUTERS AND OFFICE EQUIPMENT -- 8.0%
97,500 Apple Computer Inc. ................. 2,511
199,800 Dell Computer Corporation(!)......... 6,156
214,300 EMC Corporation...................... 21,241
90,700 Hewlett-Packard Company.............. 8,798
48,600 International Business Machines
Corporation........................ 5,468
78,900 Jabil Circuit, Inc. ................. 4,478
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
COMPUTERS AND OFFICE EQUIPMENT --
(CONTINUED)
34,900 NCR Corporation(!)................... $ 1,320
43,000 Network Appliance, Inc. ............. 5,477
31,100 Palm, Inc.(!)........................ 1,646
15,200 PerkinElmer, Inc. ................... 1,587
17,600 Sanmina Corporation.................. 1,648
38,700 Solectron Corporation................ 1,785
165,600 Sun Microsystems, Inc. .............. 19,333
----------
81,448
----------
CONGLOMERATES -- 2.2%
61,600 Dover Corporation.................... 2,891
46,500 Textron Inc. ........................ 2,145
175,700 Tyco International Ltd. ............. 9,115
112,000 United Technologies Corporation...... 7,756
----------
21,907
----------
CONSUMER CREDIT AND MORTGAGES -- 1.9%
80,000 American Express Company............. 4,860
130,700 Fannie Mae........................... 9,344
101,500 MBNA Corporation..................... 3,908
11,500 Providian Financial Corporation...... 1,461
----------
19,573
----------
DEPARTMENT AND DISCOUNT STORES -- 2.5%
45,100 Kohls Corporation.................... 2,602
99,300 Sears, Roebuck and Company........... 3,219
398,400 Wal-Mart Stores, Inc. ............... 19,173
----------
24,994
----------
DIVERSIFIED MANUFACTURING -- 4.1%
717,300 General Electric Company(++)......... 41,379
----------
ELECTRIC POWER -- NON NUCLEAR -- 2.4%
67,500 Duke Energy Corporation.............. 5,788
81,200 FPL Group Inc. ...................... 5,339
114,400 PECO Energy Company.................. 6,928
110,400 Unicom Corporation................... 6,203
----------
24,258
----------
FOOD AND DRUG STORES -- 0.4%
94,800 Safeway, Inc.(!)..................... 4,426
----------
FOOD PRODUCTS -- 1.5%
22,000 Bestfoods............................ 1,601
172,600 ConAgra Inc. ........................ 3,463
28,500 Nabisco Group Holdings Corporation... 812
51,000 Quaker Oats Company.................. 4,035
80,200 SYSCO Corporation.................... 3,714
43,100 Unilever NV, ADR..................... 2,080
----------
15,705
----------
HEALTH SERVICES -- 0.4%
38,400 UnitedHealth Group Inc.(!)........... 3,792
----------
HEAVY MACHINERY -- 0.4%
58,100 Deere & Company...................... 1,932
70,500 Parker Hannifin Corporation.......... 2,379
----------
4,311
----------
HOUSEHOLD PRODUCTS -- 1.4%
81,900 Avon Products, Inc. ................. 3,348
38,600 Colgate-Palmolive Company............ 1,822
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE> 110
NATIONS MASTER INVESTMENT TRUST
Nations Blue Chip Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
HOUSEHOLD PRODUCTS -- (CONTINUED)
125,100 Kimberly-Clark Corporation........... $ 6,981
57,800 The Clorox Company................... 2,287
----------
14,438
----------
INSURANCE -- 3.8%
85,400 American General Corporation......... 6,661
64,950 American International Group,
Inc. .............................. 6,215
80,300 AXA Financial, Inc. ................. 4,090
34,900 CIGNA Corporation.................... 3,644
134,100 Hartford Financial Services Group,
Inc. .............................. 9,781
126,000 MGIC Investment Corporation.......... 7,702
----------
38,093
----------
INTEGRATED OIL -- 5.0%
72,900 Apache Corporation................... 4,310
124,700 Chevron Corporation.................. 10,631
342,177 Exxon Mobil Corporation.............. 30,496
134,200 Occidental Petroleum Corporation..... 2,927
100,000 USX-Marathon Group Inc. ............. 2,838
----------
51,202
----------
INVESTMENT SERVICES -- 3.6%
64,100 Lehman Brothers Holdings Inc. ....... 9,471
101,200 Merrill Lynch & Company Inc. ........ 6,679
119,800 Morgan Stanley Dean Witter &
Company............................ 10,954
69,800 State Street Corporation............. 9,074
----------
36,178
----------
LODGING AND RECREATION -- 0.6%
79,000 Harley-Davidson Inc. ................ 3,782
54,200 Marriott International Inc., Class
A.................................. 1,975
----------
5,757
----------
MEDICAL DEVICES AND SUPPLIES -- 3.2%
65,600 Baxter International Inc. ........... 5,236
111,750 Biomet, Inc. ........................ 3,911
77,000 Cardinal Health, Inc. ............... 6,790
134,800 Johnson & Johnson.................... 12,663
31,400 PE Corp-PE Biosystems Group.......... 3,658
----------
32,258
----------
METALS AND MINING -- 0.3%
67,200 Barrick Gold Corporation............. 1,025
123,300 USX - U.S. Steel Group Inc. ......... 1,872
----------
2,897
----------
NATURAL GAS DISTRIBUTION -- 1.1%
104,200 Coastal Corporation.................. 7,724
35,800 Enron Corporation.................... 3,137
----------
10,861
----------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 7.6%
1,000 ADC Telecommunications, Inc. ........ 27
8,100 Brocade Communications Systems,
Inc. .............................. 1,912
17,800 CIENA Corporation.................... 2,186
631,200 Cisco Systems, Inc. ................. 34,873
27,700 Comverse Technology, Inc. ........... 2,992
37,500 Corning Inc. ........................ 11,138
6,400 Foundry Networks, Inc. .............. 428
40,550 JDS Uniphase Corporation............. 3,840
7,700 Juniper Networks, Inc. .............. 1,686
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- (CONTINUED)
252,000 Nortel Networks Corporation.......... $ 15,009
53,200 Scientific-Atlanta, Inc. ............ 3,385
----------
77,476
----------
OILFIELD SERVICES -- 0.6%
74,400 ENSCO International Inc. ............ 2,846
44,400 Schlumberger Ltd. ................... 3,654
----------
6,500
----------
PAPER AND FOREST PRODUCTS -- 0.4%
48,000 Bowater Incorporated................. 2,230
23,477 International Paper Company.......... 673
32,400 Weyerhaeuser Company................. 1,308
----------
4,211
----------
PHARMACEUTICALS -- 7.7%
56,800 Allergan, Inc. ...................... 4,796
81,400 Amgen Inc. .......................... 5,684
32,300 Biogen, Inc.(!)...................... 1,970
181,300 Bristol-Myers Squibb Company......... 10,357
30,800 Eli Lilly and Company................ 2,499
255,200 Merck & Company, Inc. ............... 18,996
523,725 Pfizer Inc. ......................... 23,535
217,200 Schering-Plough Corporation.......... 10,100
----------
77,937
----------
PUBLISHING AND ADVERTISING -- 0.6%
55,700 McGraw-Hill Companies, Inc. ......... 3,540
53,000 New York Times Company, Class A...... 2,084
----------
5,624
----------
RAILROADS, TRUCKING AND SHIPPING -- 0.3%
66,100 Union Pacific Corporation............ 2,570
----------
RESTAURANTS -- 0.3%
71,600 Starbucks Corporation(!)............. 2,868
----------
SEMICONDUCTORS -- 5.8%
1 Agilent Technologies Inc.(!)++....... 0
64,300 Altera Corporation................... 3,070
57,500 Analog Devices, Inc. ................ 4,747
101,500 Applied Materials, Inc. ............. 6,020
7,700 Applied Micro Circuits
Corporation(!)..................... 1,594
24,700 Broadcom Corporation, Class A........ 6,021
349,200 Intel Corporation.................... 14,514
30,100 KLA-Tencor Corporation............... 1,240
33,700 Linear Technology Corporation........ 2,182
61,300 Micron Technology, Inc. ............. 2,820
33,000 National Semiconductor
Corporation(!)..................... 1,328
10,300 PMC - Sierra, Inc. .................. 2,217
9,200 SDL, Inc. ........................... 2,846
26,500 Teradyne, Inc.(!).................... 928
128,000 Texas Instruments Inc. .............. 6,040
44,600 Xilinx, Inc. ........................ 3,819
----------
59,386
----------
SOFTWARE -- 6.0%
16,100 Adobe Systems Inc. .................. 2,500
12,300 BroadVision, Inc. ................... 316
74,800 First Data Corporation............... 2,922
25,700 Intuit Inc. ......................... 1,465
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE> 111
NATIONS MASTER INVESTMENT TRUST
Nations Blue Chip Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
-------------------------------------------------------------
<C> <S> <C>
SOFTWARE -- (CONTINUED)
365,400 Microsoft Corporation(!)(++)......... $ 22,037
255,600 Oracle Corporation................... 20,129
27,100 Siebel Systems, Inc. ................ 3,017
30,700 VERITAS Software Corporation......... 4,359
50,200 Yahoo! Inc. ......................... 4,568
----------
61,313
----------
SPECIALTY STORES -- 2.2%
105,600 Bed Bath & Beyond, Inc. ............. 2,576
58,900 Best Buy Company, Inc.(!)............ 3,748
166,250 Home Depot Inc. ..................... 8,821
182,100 Limited Inc. ........................ 4,017
82,800 Tiffany & Company.................... 3,193
----------
22,355
----------
TELECOMMUNICATIONS SERVICES -- 6.4%
294,500 BellSouth Corporation................ 11,854
66,000 Nextel Communications, Inc. ......... 3,086
215,200 Qwest Communications International,
Inc.(!)............................ 10,343
348,901 SBC Communications Inc. ............. 17,444
215,216 Verizon Communications............... 10,425
385,650 WorldCom, Inc.(!).................... 11,714
----------
64,866
----------
TOBACCO -- 0.6%
217,700 Philip Morris Companies Inc. ........ 6,409
----------
TOTAL COMMON STOCKS
(Cost $723,517).................... 997,799
----------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 0.3%
(Cost $2,931)
U.S. TREASURY BILLS -- 0.3%
$ 3,000 Discount note 02/15/01............... 2,932
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.5%
(Cost $25,458)
25,458 Nations Cash Reserves#................ $ 25,458
----------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $751,906*)........... 101.1% 1,026,189
----------
OTHER ASSETS AND LIABILITIES
(NET)...................... (1.1)%
Cash.................................. $ 98
Receivable for investment securities
sold................................ 8,852
Dividends receivable.................. 837
Interest receivable................... 77
Receivable for variation margin....... 101
Collateral on securities loaned....... (10,351)
Investment advisory fee payable....... (554)
Administration fee payable............ (43)
Payable for investment securities
purchased........................... (9,791)
Accrued Trustees' fees and expenses... (11)
Accrued expenses and other
liabilities......................... (57)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (10,842)
----------
NET ASSETS................... 100.0% $1,015,347
==========
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $274,283 on
investment securities was comprised of gross appreciation of $306,516 and
gross depreciation of $32,233 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $751,906.
(!) Non-income producing security.
(++) Security segregated as collateral for futures contracts.
++ Amount represents less than $500.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $10,351.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE> 112
NATIONS MASTER INVESTMENT TRUST
Nations Marsico Focused Equities Master Portfolio
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.8%
AEROSPACE AND DEFENSE -- 4.2%
740,082 Boeing Company...................... $ 46,625
1,021,683 General Dynamics Corporation........ 64,175
----------
110,800
----------
BEVERAGES -- 1.8%
1,101,994 Anheuser-Busch Companies, Inc. ..... 46,628
----------
BROADCASTING AND CABLE -- 3.5%
476,602 Clear Channel Communications,
Inc.(!)........................... 26,928
843,172 Time Warner Inc. ................... 65,978
----------
92,906
----------
COMMERCIAL BANKING -- 4.3%
2,094,609 Citigroup Inc. ..................... 113,240
----------
COMPUTER SERVICES -- 2.9%
1,419,950 America Online Inc. ................ 76,322
----------
COMPUTERS AND OFFICE EQUIPMENT -- 12.1%
1,886,278 EMC Corporation..................... 186,978
1,097,902 Sun Microsystems, Inc. ............. 128,180
----------
315,158
----------
CONSUMER CREDIT AND MORTGAGES -- 1.4%
612,500 American Express Company............ 37,209
----------
CONSUMER SERVICES -- 2.8%
2,075,691 Costco Wholesale Corporation........ 72,519
----------
DEPARTMENT AND DISCOUNT STORES -- 2.3%
1,251,490 Wal-Mart Stores, Inc. .............. 60,228
----------
DIVERSIFIED MANUFACTURING -- 3.6%
1,616,978 General Electric Company............ 93,279
----------
FINANCE -- MISCELLANEOUS -- 3.0%
686,675 Goldman Sachs Group, Inc.(!)........ 78,238
----------
INTEGRATED OIL -- 2.1%
1,058,533 BP Amoco plc, ADR................... 56,102
----------
INVESTMENT SERVICES -- 8.5%
126,058 Lehman Brothers Holdings Inc. ...... 18,625
1,407,826 Merrill Lynch & Company Inc. ....... 92,917
1,221,936 Morgan Stanley Dean Witter &
Company........................... 111,730
----------
223,272
----------
LODGING AND RECREATION -- 1.9%
688,849 Four Seasons Hotels Inc. ........... 50,415
----------
MEDICAL DEVICES AND SUPPLIES -- 1.6%
579,504 Guidant Corporation(!).............. 40,964
----------
NETWORKING AND TELECOMMUNICATIONS
EQUIPMENT -- 8.9%
743,822 Cisco Systems, Inc. ................ 41,096
432,656 Corning Inc. ....................... 128,499
1,082,121 Nortel Networks Corporation......... 64,454
----------
234,049
----------
PHARMACEUTICALS -- 10.9%
959,437 Genentech, Inc. .................... 178,156
315,522 Merck & Company, Inc. .............. 23,487
840,169 Pfizer Inc. ........................ 82,693
----------
284,336
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
SOFTWARE -- 7.4%
529,108 Adobe Systems Inc. ................. 82,144
1,421,411 Oracle Corporation.................. 111,936
----------
194,080
----------
SPECIALTY STORES -- 8.5%
3,075,343 Home Depot Inc. .................... $ 163,185
1,515,094 Tiffany & Company................... 58,426
----------
221,611
----------
TELECOMMUNICATIONS SERVICES -- 3.1%
2,173,322 General Motors Corporation, Class
H................................. 80,804
----------
TOTAL COMMON STOCKS
(Cost $1,942,062)................. 2,482,160
----------
<CAPTION>
PRINCIPAL
AMOUNT
(000)
---------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 6.9%
(Cost $180,769)
FEDERAL HOME LOAN BANK (FHLB) -- 6.9%
$ 180,800 Discount note 10/02/00.............. 180,738
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.5%
(Cost $66,040)
66,040 Nations Cash Reserves#.............. 66,040
----------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $2,188,871*)......... 104.2% 2,728,938
----------
OTHER ASSETS AND LIABILITIES
(NET)...................... (4.2)%
Cash................................. $ 5,162
Receivable for investment securities
sold............................... 195,486
Dividends receivable................. 696
Interest receivable.................. 1
Miscellaneous receivables............ 1
Collateral on securities loaned...... (65,929)
Investment advisory fee payable...... (1,631)
Administration fee payable........... (218)
Payable for investment securities
purchased.......................... (242,689)
Accrued Trustees' fees and
expenses........................... (11)
Accrued expenses and other
liabilities........................ (37)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. (109,169)
----------
NET ASSETS................... 100.0% $2,619,769
==========
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $540,067 on
investment securities was comprised of gross appreciation of $576,926 and
gross depreciation of $36,859 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $2,188,871.
(!) Non-income producing security.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc. A portion of this amount represents cash collateral received from
securities lending activity (Note 8). The portion that represents cash
collateral is $65,929.
ABBREVIATIONS:
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE> 113
NATIONS MASTER INVESTMENT TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
<CAPTION>
GROWTH & FOCUSED
INCOME BLUE CHIP EQUITIES
MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $12, $53 and
$75, respectively)........................................ $ 1,382 $ 4,979 $ 4,649
Interest.................................................... 1,857 598 5,631
Securities lending income................................... 50 36 246
-------------- -------------- --------------
Total investment income................................. 3,289 5,613 10,526
-------------- -------------- --------------
EXPENSES:
Investment advisory fee..................................... 2,415 3,325 8,803
Administration fee.......................................... 322 256 1,174
Custodian fees.............................................. 34 37 67
Legal and audit fees........................................ 23 22 30
Trustees' fees and expenses................................. 12 9 12
Other....................................................... 3 -- 14
-------------- -------------- --------------
Total expenses.......................................... 2,809 3,649 10,100
Fees reduced by credits allowed by the custodian............ (16) (2) (2)
-------------- -------------- --------------
Net expenses............................................ 2,793 3,647 10,098
-------------- -------------- --------------
NET INVESTMENT INCOME....................................... 496 1,966 428
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions..................................... (34,985) 21,623 (118,432)
Futures contracts......................................... -- 450 --
Foreign currency and net other assets..................... -- -- (2)
-------------- -------------- --------------
Net realized gain/(loss) on investments..................... (34,985) 22,073 (118,434)
Change in unrealized appreciation/(depreciation) of:
Securities (Note 7)....................................... (2,677) (35,742) 26,987
Futures contracts......................................... -- (1,696) --
Foreign currency and net other assets..................... -- -- --*
-------------- -------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... (2,677) (37,438) 26,987
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on investments...... (37,662) (15,365) (91,447)
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ (37,166) $ (13,399) $ (91,019)
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE> 114
NATIONS MASTER INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GROWTH & INCOME
MASTER PORTFOLIO
-----------------------------------
SIX MONTHS
ENDED
9/30/00 PERIOD ENDED
(UNAUDITED) 3/31/00(a)
-----------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 496 $ (90)
Net realized gain/(loss) on investments..................... (34,985) 9,101
Net change in unrealized appreciation/(depreciation) of
investments............................................... (2,677) 43,475
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ (37,166) 52,486
Contributions............................................... 203,532 670,827
Withdrawals................................................. (95,317) (93,814)
-------------- --------------
Net increase/(decrease) in net assets....................... 71,049 629,499
NET ASSETS:
Beginning of period......................................... 629,499 --
-------------- --------------
End of period............................................... $ 700,548 $ 629,499
============== ==============
</TABLE>
---------------
(a) Growth and Income Master Portfolio commenced operations on October 8, 1999.
(b) Represents financial information for the Pacific Horizon Blue Chip
Portfolio, which was reorganized into Blue Chip Master Portfolio on May 21,
1999.
(c) Focused Equities Master Portfolio commenced operations on October 8, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE> 115
NATIONS MASTER INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
FOCUSED EQUITIES
BLUE CHIP MASTER PORTFOLIO MASTER PORTFOLIO
------------------------------------------------ -------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/00 PERIOD ENDED PERIOD ENDED 9/30/00 PERIOD ENDED
(UNAUDITED) 3/31/00 5/14/99(b) (UNAUDITED) 3/31/00(c)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,966 $ 3,435 $ 1,287 $ 428 $ (540)
22,073 86,647 57,394 (118,434) 24,535
(37,438) 44,620 10,459 26,987 137,004
-------------- -------------- -------------- -------------- --------------
(13,399) 134,702 69,140 (91,019) 160,999
5,569 37,026 45,223 862,643 2,482,428
(23,926) (96,955) (49,779) (415,021) (380,261)
-------------- -------------- -------------- -------------- --------------
(31,756) 74,773 64,584 356,603 2,263,166
1,047,103 972,330 907,746 2,263,166 --
-------------- -------------- -------------- -------------- --------------
$ 1,015,347 $ 1,047,103 $ 972,330 $ 2,619,769 $ 2,263,166
============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
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NATIONS MASTER INVESTMENT TRUST
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
OPERATING INVESTMENT OPERATING
EXPENSES INCOME/(LOSS) PORTFOLIO EXPENSES TO
TO AVERAGE TO AVERAGE TURNOVER AVERAGE
NET ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH & INCOME MASTER PORTFOLIO:
Six months ended 9/30/00 (unaudited)..................... 0.87%+(d) 0.15%+ 49% 0.87%+(d)
Period ended 3/31/2000(a)................................ 0.86+(d) (0.04)+ 60 0.86+(d)
BLUE CHIP MASTER PORTFOLIO:
Six months ended 9/30/00 (unaudited)..................... 0.71%+(d) 0.38%+ 28% 0.71%+(d)
Period ended 3/31/2000................................... 0.73+(d) 0.40+ 47 0.73+(d)
Period ended 5/14/1999(b)................................ 0.61+ 0.65+ 19 0.61
Year ended 2/28/1999(b).................................. 0.62 0.85 57 0.62
Year ended 2/28/1998(b).................................. 0.65 1.11 67 1.06
Year ended 2/28/1997(b).................................. 0.62 1.62 91 1.34
Year ended 2/29/1996(b).................................. 0.31 2.16 108 1.57
FOCUSED EQUITIES MASTER PORTFOLIO:
Six months ended 9/30/00 (unaudited)..................... 0.86%+(d) 0.04%+ 60% 0.86%+(d)
Period ended 3/31/2000(c)................................ 0.84+(d) (0.07)+ 84 0.84+(d)
</TABLE>
---------------
+ Annualized.
(a) Growth & Income Master Portfolio commenced operations on October 8, 1999.
(b) Represents financial information for the Pacific Horizon Blue Chip
Portfolio, which was reorganized into Blue Chip Master Portfolio on May 21,
1999.
(c) Focused Equities Master Portfolio commenced operations on October 8, 1999.
(d) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 117
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Master Investment Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. At September 30, 2000, the Trust offered nine separate
portfolios. These financial statements pertain only to Growth & Income Master
Portfolio, Blue Chip Master Portfolio and Focused Equities Master Portfolio
(each a "Master Portfolio" and collectively, the "Master Portfolios"). Financial
statements for the other portfolios of the Trust are presented under separate
cover.
The following investors were invested in the Master Portfolios at September 30,
2000:
<TABLE>
<S> <C>
Growth & Income Master Portfolio:
Nations Marsico Growth & Income Fund......... 97.8%
Nations Marsico Growth & Income Fund
(Offshore)................................. 1.1%
Banc of America Capital Management Funds I --
Growth & Income Fund....................... 1.1%
Blue Chip Master Portfolio:
Nations Blue Chip Fund....................... 95.2%
Nations Blue Chip Fund (Offshore)............ 4.8%
Focused Equities Master Portfolio:
Nations Marsico Focused Equities Fund........ 98.9%
Nations Marsico Focused Equities Fund
(Offshore)................................. 0.7%
Banc of America Capital Management Funds I --
Focused Equities Fund...................... 0.4%
</TABLE>
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
certain 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 Master Portfolios in the preparation of their financial
statements.
Securities valuation: Securities traded on a recognized exchange or on NASDAQ
are valued at the last sale price on the exchange or market on which such
securities are primarily traded. Securities traded only over-the-counter are
valued at the last sale price, or if no sale occurred on such day, at the mean
of the current bid and asked prices. Certain securities may be valued using
broker quotations or on the basis of prices provided by pricing services.
Restricted securities, securities for which market quotations are not readily
available, and certain other assets may be valued under procedures adopted by
the Board of Trustees. Short-term investments that mature in 60 days or less are
valued at amortized cost, which approximates current market value.
Futures contracts: All Master Portfolios may invest in futures contracts. Upon
entering into a futures contract, a Master Portfolio is required to deposit with
the broker an amount of cash or liquid securities equal to a specified
percentage of the contract amount. This is known as the "initial margin."
Subsequent payments ("variation margin") are made or received by a Master
Portfolio each day, depending on the daily fluctuation of the value of the
contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the market value of the contract. When the contracts
are closed, a Master Portfolio records a realized gain or loss equal to the
difference between the value of the contracts on the closing date and the value
of the contracts when originally entered into.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts, that a change in
the value of the contract may not correlate with changes in the value of the
underlying securities, or that the counterparty to a contract may default on its
obligation to perform.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on ex-
dividend date.
Federal income taxes: The Master Portfolios are treated as partnerships for
federal income tax purposes and therefore are not subject to federal income tax.
Each investor in the Master Portfolios will be taxed on its allocated share of
the Master Portfolio's ordinary income and capital gains.
Expenses: General expenses of the Trust are allocated to the Master Portfolios
based upon their relative net assets or other expense allocation methodologies
determined by the nature of the expense. Expenses directly attributable to a
Master Portfolio are charged to such Master Portfolio.
113
<PAGE> 118
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
The Trust has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI"), a wholly-
owned subsidiary of Bank of America, N.A. ("Bank of America"), which in turn is
a wholly-owned banking subsidiary of Bank of America Corporation, a bank holding
company organized as a Delaware corporation, pursuant to which BAAI provides
investment advisory services to the Master Portfolios. Under the terms of the
Investment Advisory Agreement, BAAI 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 Master Portfolio:
<TABLE>
<CAPTION>
ANNUAL
RATE
------
<S> <C>
Growth & Income Master Portfolio.............. 0.75%
Blue Chip Master Portfolio.................... 0.65%
Focused Equities Master Portfolio............. 0.75%
</TABLE>
The Trust has, on behalf of the Growth & Income and Focused Equities Master
Portfolios, entered into a sub-advisory agreement with BAAI and Marsico Capital
Management, LLC ("Marsico"), pursuant to which Marsico is entitled to receive a
sub-advisory fee from BAAI at the maximum annual rate of 0.45% of each Master
Portfolio's average daily net assets. Marsico Management Holdings, LLC, a
partially-owned subsidiary of Bank of America, owns 50% of the equity of
Marsico. On June 28, 2000, Bank of America announced its intention to purchase
the remaining 50% equity interest in Marsico. The proposed purchase is not
expected to result in any change in the Marsico personnel who manage the Master
Portfolios or in the way that the Master Portfolios are managed.
The Trust has, on behalf of the Blue Chip Master Portfolio, entered into a
sub-advisory agreement with BAAI and Chicago Equity Partners LLC ("Chicago
Equity"), pursuant to which Chicago Equity is entitled to receive a sub-advisory
fee from BAAI at the maximum annual rate of 0.25% of the Master Portfolio's
average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust.
Under the co-administration agreements, Stephens and BAAI are currently entitled
to receive a combined fee, computed daily and paid monthly, at the maximum
annual rate of 0.05% of the Blue Chip Master Portfolio's average daily net
assets and 0.10% of the Growth & Income and Focused Equities Master Portfolios'
average daily net assets. The Bank of New York ("BNY") serves as
sub-administrator of the Trust pursuant to an agreement with BAAI. For the six
months ended September 30, 2000, BAAI earned 0.10%, 0.05% and 0.10%,
respectively, from the average daily net assets of the Growth & Income, Blue
Chip and Focused Equities Master Portfolios for its co-administration services.
BNY serves as the custodian of the Trust's assets. For the six months ended
September 30, 2000, expenses of the Master Portfolios were reduced by $20,208
under expense offset arrangements with BNY. The Master Portfolios could have
invested a portion of the assets utilized in connection with the expense offset
arrangements in an income producing asset if they had not entered into such
arrangements.
No officer, director or employee of Bank of America or BAAI, or any affiliate
thereof, receives any compensation from the Trust for serving as a Trustee or
Officer of the Trust.
For the six months ended September 30, 2000, Growth & Income Master Portfolio
and Focused Equities Master Portfolio paid commissions of $18,662 and $37,952,
respectively, to certain affiliates of BAAI in connection with the execution of
various portfolio transactions.
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 Master Portfolios' 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., another registered investment company in the Nations Funds family. The
expense for the deferred compensation and retirement plans is included in
"Trustees' fees and expenses" in the Statements of operations.
The Master Portfolios have made daily investments of cash balances in Nations
Cash Reserves, a portfolio of Nations Reserves, pursuant to an exemptive order
received from the Securities and Exchange Commission. For the six months ended
September 30, 2000, the Master Portfolios earned $519,392 in the aggregate from
such investments, which is included in interest income.
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government
114
<PAGE> 119
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
securities and short-term investments, for the six months ended September 30,
2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
------------------------
<S> <C> <C>
Growth & Income Master
Portfolio................. $ 424,342 $ 295,922
Blue Chip Master
Portfolio................. 277,710 282,853
Focused Equities Master
Portfolio................. 1,685,518 1,310,270
</TABLE>
There were no purchases and sales of long-term U.S. government securities for
the six months ended September 30, 2000.
4. FUTURES CONTRACTS
At September 30, 2000, the following Master Portfolio had futures contracts
open:
<TABLE>
<CAPTION>
VALUE OF
CONTRACT MARKET
WHEN VALUE OF UNREALIZED
NUMBER OF OPENED CONTRACTS DEPRECIATION
DESCRIPTION CONTRACTS (000) (000) (000)
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
BLUE CHIP MASTER
PORTFOLIO:
S&P 500 Futures (long
position) expiring
December 2000(a)... 25 $9,470 $9,086 $(384)
</TABLE>
---------------
(a) Securities have been segregated as collateral for the Blue Chip Master
Portfolio for open futures contracts.
5. LINES OF CREDIT
The Trust participates with other Nations Funds in an uncommitted line of credit
provided by BNY under a line of credit agreement (the "Agreement"). Advances
under the Agreement are taken primarily for temporary or emergency purposes,
including the meeting of redemption requests that otherwise might require the
untimely disposition of securities. Interest on borrowings is payable at a
specified Federal Funds rate plus 0.50% on an annualized basis. Each
participating Master Portfolio maintains a ratio of no less than 4 to 1 net
assets (not including amounts borrowed pursuant to the Agreement) to the
aggregate amount of indebtedness pursuant to the Agreement.
At September 30, 2000, there were no loans outstanding under this Agreement. For
the six months ended September 30, 2000, there were no borrowings by the Master
Portfolios under the Agreement.
The average amount outstanding was calculated based on daily balances during the
period.
The Trust also participates with other Nations Funds in a committed line of
credit provided by BNY. Interest on borrowings under the committed line is
payable at a specified Federal Funds rate plus 0.50% on an annualized basis. A
facility fee of 0.09% per annum of the total amounts available under the line of
credit is charged, of which each Master Portfolio pays its pro rata share. This
fee is paid quarterly in arrears. Each participating Master Portfolio is
required to maintain an asset coverage ratio of at least 300% under the terms of
the arrangement. For the six months ended September 30, 2000, there were no
borrowings by the Master Portfolios under the committed line of credit.
6. SECURITIES LENDING
Under an agreement with BNY, the Master Portfolios can lend their securities to
approved brokers, dealers and other financial institutions. Loans are
collateralized by cash, in an amount at least equal to the market value of the
securities loaned. The cash collateral received is invested in Nations Cash
Reserves. A portion of the income generated by the investment of the collateral,
net of any rebates paid by BNY to borrowers, is remitted to BNY as lending
agent, and the remainder is paid to the Master Portfolios. Generally, in the
event of counterparty default, the Master Portfolio has the right to use the
collateral to offset losses incurred. There would be a potential loss to the
Master Portfolio in the event the Master Portfolio is delayed or prevented from
exercising its right to dispose of the collateral. The Master Portfolio bears
the risk of loss with respect to the investment of collateral.
At September 30, 2000, the following Master Portfolios had securities on loan:
<TABLE>
<CAPTION>
MARKET VALUE
OF LOANED MARKET VALUE
SECURITIES OF COLLATERAL
PORTFOLIO (000) (000)
----------------------------------------------------------
<S> <C> <C>
Growth & Income Master
Portfolio................ $15,231 $16,641
Blue Chip Master
Portfolio................ 9,800 10,351
Focused Equities Master
Portfolio................ 61,428 65,929
</TABLE>
115
<PAGE> 120
NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
7. REORGANIZATION OF MASTER INVESTMENT TRUST, SERIES I
On May 21, 1999, Blue Chip Master Portfolio, a newly established portfolio,
acquired the assets and liabilities of the Pacific Horizon Blue Chip Master
Portfolio ("Acquired Portfolio"), a series of Master Investment Trust, Series I,
pursuant to a plan of reorganization approved by its investors. The acquisition
was accomplished by a tax-free exchange of shares of Blue Chip Master Portfolio
in an amount equal to the outstanding interests of the Acquired Portfolio. The
financial statements of the Blue Chip Master Portfolio reflect the historical
financial results of the Acquired Portfolio prior to the reorganization.
Additionally, the fiscal year end of the Blue Chip Master Portfolio for
financial reporting purposes was changed to coincide with that of the Trust.
116
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<PAGE> 122
P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.321.7854
NATIONS FUNDS
DOMSTKSAR (9/00)
