<PAGE> 1
[GRAPHIC: PHOTO OF TRAFFIC CLOVERLEAF] Nations Short-Term
Municipal Income Fund
Nations Intermediate
Municipal Bond Fund
Nations Municipal
Income Fund
Nations CA Municipal
Bond Fund
Nations FL Intermediate
Municipal Bond Fund
Nations FL Municipal
Bond Fund
Nations GA Intermediate
Municipal Bond Fund
Nations GA Municipal
Bond Fund
Nations MD Intermediate
Municipal Bond Fund
Nations MD Municipal
Bond Fund
Nations NC Intermediate
Municipal Bond Fund
Nations NC Municipal
Bond Fund
Nations SC Intermediate
Municipal Bond Fund
Nations SC Municipal
Bond Fund
Nations TN Intermediate
Municipal Bond Fund
Nations TN Municipal
Bond Fund
Nations TX Intermediate
Municipal Bond Fund
Nations TX Municipal
Bond Fund
Nations VA Intermediate
Municipal Bond Fund
Nations VA Municipal
Bond Fund
MUNICIPAL
BOND FUNDS
ANNUAL REPORT FOR THE YEAR
ENDED MARCH 31, 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:
As we report on the past 12 months ending March 31,
2000, we need to remind ourselves of two major
investment tenets -- diversification and investing
for the long term. Keep these points in mind as we
take a look back at the past year and where we are
today.
THE YEAR IN REVIEW
For most of 1999, the threat of Y2K was on everyone's
minds. Many companies in the U.S. and around the
world went to great lengths to make sure that
computer systems were compliant and ready to "squash"
the Y2K bug. Fortunately, we entered the 21st century
relatively unscathed. But in the months that led up
to the year 2000 and in the first quarter of the new
year, the markets have put on quite a show. We've
seen an unusual level of volatility and it doesn't
look like things are going to calm down any time
soon.
While large-company stocks continued to perform well
in 1999 and into 2000, markets began to broaden with
small and mid-size company stocks staging turnarounds
and actually outperforming large-company stocks. The
Standard & Poor's 500 Composite Stock Price Index was
up 17.94% for the 12 months ending March 31, 2000,
while the S&P MidCap 400 Index and Russell 2000 Index
were up 38.20% and 37.29%, respectively.* Value
stocks also regained some ground during the period
after several quarters of underperformance versus
growth stocks.
International markets also showed new life in 1999
and into 2000, especially in Asia where it's been a
long recovery since the Asian "malaise" began in
1997. The Morgan Stanley Capital International (MSCI)
Europe, Australasia and Far East (EAFE) Index gained
25.09% for the 12 months ending March 31, 2000,
thanks in large part to the economic recovery in
Japan.**
MARKET MAYHEM
As of late, we have witnessed wild swings in the U.S.
stock markets, setting new milestones for one-day
gains and losses. It's a tumultuous time in the
markets and now, more than ever, it's important to
remember that one key to a successful investment
strategy is diversification. Investing in a number of
sectors allows you to take advantage of those sectors
that are in favor today, and those that may be in
favor tomorrow. And, as shown by how quickly the
markets have rebounded from these dramatic highs and
lows, you need to remember to stay focused on
long-term goals. Investing takes discipline and a
conviction to hold true to your long-term objectives.
As we've said before, investors that took themselves
out of the market based on short-term volatility and
Y2K fears lost out on potential gains in their
investments during that time and face possible tax
implications and fees as a result of their
withdrawal. It's true that over the long term, the
market has trended upward. While there is no
assurance that this trend will continue, the
advantages of long-term investing are clear.
*The Standard & Poor's 500 Composite Stock Price
Index is an unmanaged index of 500 widely held
common stocks. The Standard & Poor's MidCap 400 Index
is a market-value weighted index that
measures the market value of 400 domestic stocks
chosen for market size, liquidity, and industry
representation. It is unmanaged and unavailable for
investment. The Russell 2000 Index is an
unmanaged capitalization-weighted index that tracks
the performance of 2000 small company stocks. It
is unavailable for investment.
**The Morgan Stanley Capital International Europe,
Australasia and Far East Index is an unmanaged,
capitalization-weighted index that tracks stocks
traded in twenty countries in Europe, Australia, and
the Far East. It is unavailable for investment.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
PRESIDENTS' MESSAGE CONTINUED...
At Nations Funds, we firmly believe in the value of
advice, especially in times of uncertainty. An
investment professional can keep you abreast of
current market conditions and work with you to
determine the best strategy for surviving short-term
volatility and successfully reaching your long-term
goals.
WHAT'S NEW AT NATIONS FUNDS
In its continuing effort to provide world-class
investment management, Bank of America reorganized a
number of internal investment management units into
Banc of America Capital Management, Inc. (BACAP).
Focusing on both equity and fixed income funds, this
Nations Funds Manager of Distinction(SM) is
responsible for the portfolio management of more than
40 Nations Funds. This entity was developed to
synergize research and investment capabilities into a
premier investment management organization. And the
media has taken notice. You may have seen BACAP
investment professionals regularly featured on
programs on CNBC and CNNfn. When the media looks to
the industry for expert analysis, they are now
turning regularly to the investment professionals of
BACAP.
In addition to the changes at BACAP, we enhanced our
investment management expertise with the addition of
MacKay Shields LLC as our newest Manager of
Distinction to manage Nations High Yield Bond Fund,
which debuted in February. The Fund rounds out our
line of fixed income fund offerings. On the equity
side, we launched a new Fund for a new era -- Nations
Marsico 21st Century Fund. This latest offering
managed by Marsico Capital Management, LLC is
positioned to invest in companies of any size that
are changing the way the world does business.
Not only are new products important to us. Quality
shareholder service continues to be of utmost
importance. We were recognized by DALBAR, Inc. -- an
independent evaluator of customer service in the
mutual fund industry -- with the 1999 Mutual Fund
Service Award. This award was given to us in
recognition of our commitment to provide shareholders
with the highest level of client service in the
mutual fund industry. We will strive to maintain this
level of excellence throughout 2000 and beyond.
We are excited about our growth over the past year
and the opportunities ahead of us. Should you have
any questions or comments on your annual 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.
March 31, 2000
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<S> <C>
NATIONS FUNDS SPECTRUM 2
ECONOMIC OVERVIEW 3
MUNICIPAL BOND MARKET OVERVIEW 5
PORTFOLIO COMMENTARY
Nations Short-Term Municipal Income Fund 6
Nations Intermediate Municipal Bond Fund 10
Nations Municipal Income Fund 14
Nations CA Municipal Bond Fund 18
Nations FL Intermediate Municipal Bond Fund 22
Nations FL Municipal Bond Fund 26
Nations GA Intermediate Municipal Bond Fund 30
Nations GA Municipal Bond Fund 35
Nations MD Intermediate Municipal Bond Fund 40
Nations MD Municipal Bond Fund 44
Nations NC Intermediate Municipal Bond Fund 48
Nations NC Municipal Bond Fund 52
Nations SC Intermediate Municipal Bond Fund 56
Nations SC Municipal Bond Fund 60
Nations TN Intermediate Municipal Bond Fund 64
Nations TN Municipal Bond Fund 68
Nations TX Intermediate Municipal Bond Fund 73
Nations TX Municipal Bond Fund 77
Nations VA Intermediate Municipal Bond Fund 81
Nations VA Municipal Bond Fund 85
FINANCIAL STATEMENTS
Statements of net assets 89
Statements of operations 212
Statements of changes in net assets 216
Schedules of capital stock activity 224
Financial highlights 244
Notes to financial statements 284
</TABLE>
<TABLE>
<S> <C>
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NATIONS FUNDS [DALBAR Service Award Seal]
RECOGNIZED FOR [DALBAR Graphic]
OUTSTANDING DALBAR, Inc., is a well-respected
CUSTOMER SERVICE research firm that measures
customer service levels and
IN RECOGNITION OF ITS COMMITMENT TO establishes benchmarks in the
PROVIDE SHAREHOLDERS WITH THE financial services industry.
HIGHEST LEVEL OF CUSTOMER SERVICE
IN THE MUTUAL FUND INDUSTRY,
NATIONS FUNDS RECEIVED THE DALBAR
MUTUAL FUND SERVICE AWARD IN 1999.
------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
THE NATIONS FUNDS FAMILY OF FUNDS
As of March 31, 2000
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 Investment Grade 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,
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 MidCap Growth Fund
Nations Marsico Focused Equities Fund
Nations Disciplined Equity 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 International Growth Fund
Nations International Equity Fund
Nations International Value Fund
HIGHER RISK/REWARD POTENTIAL
INDEX FUNDS
Nations LargeCap Index Fund
Nations Managed Index Fund
Nations SmallCap Index Fund
Nations Managed SmallCap Value Index Fund
Nations Managed Value Index Fund
ASSET ALLOCATION PORTFOLIOS
Nations LifeGoal Balanced Growth Portfolio
Nations LifeGoal Growth Portfolio
Nations LifeGoal Income and Growth Portfolio
2
<PAGE> 7
ECONOMIC OVERVIEW
BANC OF AMERICA CAPITAL MANAGEMENT*
THE YEAR IN REVIEW
Both the U.S. economy and stock market scored
impressive performances in the year ended March 31,
2000. Our economy launched an unprecedented tenth
year of expansion, marking the longest upswing in
American history. And the stock market's continued
climb reflected favorable short-term fundamentals and
a long-term revolution in technology and
communications.
In the year ended March 31, the Standard & Poor's 500
Composite Stock Price Index advanced by 17.94%. While
investors turned in March to some of those economic
sectors largely overlooked in the rush to technology,
the Nasdaq Composite Index still sparkled with an 86%
advance for the past 12 months. A renewed interest in
smaller-capitalization stocks also drove the Russell
2000 Index 37% higher as of March 31.**
During the past year, U.S. real GDP (gross domestic
product) expanded an estimated 5%, while inflation
remained subdued. Despite a near tripling in oil
costs, consumer prices increased by only 2.4%. Two
primary forces deserve credit for this nearly
flawless performance. First, U.S. economic policies
have spawned an environment conducive to
non-inflationary growth. These policies include
deficit reduction, monetary discipline, deregulation
and free foreign trade. Second, a once-in-a-century
wave of innovation has sparked large gains in
productivity through advances in the internet,
computers and information sharing. These advances in
output per hour have restrained inflation and helped
companies achieve double-digit profit gains.
Economic and stock market advances have continued
despite five interest rate hikes enacted by the
Federal Reserve Board (the Fed) over the past year.
Three of those increases simply reversed the easings
triggered by Russia's crisis in 1998. The last two
advances in the Federal Funds rate have restored the
monetary target to the 6.0% level of 1995. The Fed is
attempting to achieve a tempered and sustainable
economic growth rate consistent with an ongoing low
rate of inflation.
The long-term bond market appears confident that the
Fed will succeed. The yield on 30-year U.S. Treasury
bonds slid below 6.0% by the end of March 2000,
reflecting in part the conviction that economic
growth will ultimately moderate and that inflation
will stay in check. In addition, the Treasury's
decision to buy back
*Banc of America Capital Management is the investment
management group of Bank of America, N.A.
and includes Banc of America Capital Management,
Inc., investment sub-adviser to many Nations Funds,
and other non-bank affiliates of Bank of America.
**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.
The Russell 2000 Index is an unmanaged,
capitalization-weighted index that tracks the
performance of 2000 small company stocks. It is
unavailable for investment.
Source for all statistical data -- Banc of America
Capital Management.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
3
<PAGE> 8
ECONOMIC OVERVIEW CONTINUED...
$30 billion in government debt because of the
emergence of sizable federal budget surpluses has
been a major force pushing long-term Treasury bond
yields lower.
The past 12 months have also witnessed the emergence
of a global recovery. Much of Asia has rebounded
smartly from the scourge of devaluations that began
in 1997. Japan's economy has continued to struggle
but appears to be on a modest upward track. The new
"Eurozone" has moved forward, although growth has
been moderate. Even Russia has begun to emerge from
the turmoil of 1998. Finally, while parts of Latin
America -- such as Venezuela and
Argentina -- continue to struggle, Brazil appears to
have turned the corner and Mexico has prospered.
The major non-event of the year turned out to be the
"Y2K" date change. Although computer failures could
have wreaked havoc on financial markets and the
global economy, extensive investment and preparation
by the technology-dependent countries allowed markets
to celebrate the new year with barely a hiccup.
THE YEAR AHEAD
Look for the U.S. economy to continue its expansion
during the coming year, with no recession looming on
the horizon. We forecast growth to moderate, however,
to 3.5% or less over the course of the next 12
months. This pace will be more consistent with a
long-term sustainable trend.
Inflation should remain constrained. Although low
unemployment may cause additional upward pressure on
wages and benefits, productivity gains should offset
much of that increase. Meanwhile, a step-up in
production by oil producing countries should cause
energy prices to subside from the peaks reached in
early 2000.
We also anticipate one or two more interest rate
hikes from the Fed as monetary authorities attempt to
rein in growth and ensure that the economy does not
overheat. Long-term interest rates have already
largely incorporated expectations of such additional
tightening.
The stock market has displayed extreme volatility
recently, and large swings are likely to continue.
Strong profit growth and moderate interest rates
should support a further rise in overall stock prices
during the coming year. However, general gains of
more than 10% should be more difficult to achieve,
especially as the surge in the technology sector has
tended to overstate some of the general strength in
the market.
While the long-term fundamentals underpinning the
technology sector remain compelling, a reallocation
in portfolios generally has begun. Investors have
started to switch from internet, communications, and
biotechnology stocks with very high valuations to
other market segments with much lower
price-to-earnings ratios***. We think this
rebalancing of the market is healthy, especially as
it involves some broadening in its strength to
encompass the financial, consumer noncyclical and
industrial sectors of the market. Also, look for
investors to continue to discern between internet and
other new firms that are likely to be long-term
survivors and those that have set up shop with only a
concept and a promise.
LYNN REASER, PH.D.
CHIEF ECONOMIST
BANC OF AMERICA CAPITAL MANAGEMENT
March 31, 2000
***The price-to-earnings ratio gives investors an
idea of how much they are paying for a company's
earning power.
4
<PAGE> 9
MUNICIPAL BOND MARKET OVERVIEW
The municipal bond market performed relatively well
during the 12-month period ended March 31, 2000, even
as the Federal Reserve Board raised short-term
interest rates and most types of bonds suffered price
losses.
For example, while the Lehman 10-Year Municipal Bond
Index* posted a positive 0.48% total return for the
period, the Lehman 10-year U.S. Treasury Index**
experienced a loss of 1.75%. Yields on municipal
securities rose, but not as much as Treasury yields.
The yield on the AAA-rated 10-year municipal bond
increased 0.70% over the period, from 4.30% to 5.00%.
The comparable 10-year Treasury bond increased 1.00%,
from 5.21% to 6.21%.
Overall, the municipal bond market benefited from a
lighter supply of new bonds as rising interest rates
discouraged issuers from bringing bonds to market,
particularly in the last six months of the period.
State and local government issuers had advanced their
new issuances to earlier in the year in an effort to
avoid Y2K related pressures. Municipal bonds
outperformed Treasuries in each of the first three
quarters of the fiscal year, trailing Treasuries only
during the first quarter of 2000, as an unprecedented
Treasury buyback program supported the price of
Treasury bonds.
Creditworthiness of state and local government
issuers overall continued to be strong. However, for
the first time in five years, hospital bonds
underperformed substantially as the financial
strength of health care institutions weakened,
primarily as a result of reduced federal
reimbursements legislated by the Balanced Budget Act
of 1997. As a result, many tax-exempt funds with
substantial positions in hospital bonds
underperformed.
Another interesting phenomena in the municipal bond
market has been the flattening of the yield
curve -- the narrowing of the difference between the
yields of shorter-term and longer-term municipal
securities. This occurred as the Treasury yield curve
not only flattened but also inverted, as shorter-term
rates actually rose to levels higher than longer-term
rates. The municipal yield curve (securities of
between two-years and 30-years in maturity) was 1.50%
at the start of the fiscal period, on April 1, 1999.
One year later, that spread had narrowed by 1.11%.
Historically, a narrowing of the difference between
yields of short-term and long-term securities has
often been a precursor to a lower level of interest
rates. Investors look forward to a cooling of
economic growth and the end of Federal Reserve
Board's tightening activities.
Given the high level of absolute interest rates, we
believe the issuance of new municipal bonds will be
somewhat restrained for the next 12 months. The
widening of the differences in yields of corporate
and agency securities over Treasury yields has
attracted institutional money away from municipal
bonds. These trends should help maintain a balance
between supply and demand in the municipal bond
market. At the same time, we think concerns about the
high valuations in the equity markets should be
positive for the demand side of municipal bonds, as
individuals may be encouraged to reallocate assets
from stocks to less volatile asset classes.
MUNICIPAL FIXED INCOME MANAGEMENT TEAM
BANC OF AMERICA CAPITAL MANAGEMENT, INC.
March 31, 2000
*The Lehman 10-Year Municipal Bond Index is a
broad-based, unmanaged, total return index composed
of investment-grade bonds with maturities of 9 to 12
years. It is unavailable for investment.
**The Lehman 10-year U.S. Treasury Index is an
unmanaged index composed of the most recently
issued 10 year U.S. Treasury Notes.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
5
<PAGE> 10
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS SHORT-TERM MUNICIPAL INCOME FUND'S PERFORMANCE FOR
THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR
THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk and lower-quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, we aim to limit
The Fund seeks high current income the Fund's exposure to any single credit or market sector.
exempt from federal income tax In addition, we use a combination of investment strategies,
consistent with minimal including duration management (managing the Fund's
fluctuation of principal. sensitivity to interest rates), market sector selection and
PERFORMANCE REVIEW individual credit reviews. We also seek to limit the
For the 12-month period ended distribution of capital gains when appropriate. As a
March 31, 2000, Nations Short-Term short-term portfolio, the Fund maintains an average
Municipal Income Fund Investor A dollar-weighted maturity of less than three years and a
Shares provided shareholders with duration between one and one-quarter and two and
a total return of 2.35%.* three-quarters years.
PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
With a total return of 2.35%, Nations Short-Term Municipal
Income Fund (Investor A Shares) outperformed its peer group,
the Lipper Short Municipal Debt Funds Universe, which
returned 1.81% for the 12-month period ended March 31, 2000.
The Fund benefited from an overweighting in higher yield
revenue bonds. This, coupled with a slightly shorter
duration than its peers in a rising interest rate
environment, enabled the Fund to outperform its peer group.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET FOR THE
COMING YEAR?
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy,
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 1.00%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Short Municipal Debt Funds Universe invest in
municipal debt issues with dollar-weighted average
maturities of less than three years.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
6
<PAGE> 11
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
while the weak inflation data encourages the Fed to remain
on hold. As a result, the Fed has taken the cautious stance
of gradual increments of 0.25% short-term interest rate
increases. After successive increases in February and in
March, the Federal Funds Rate increased from 5.50% to 6.00%.
The Fed likely will continue its gradual course of 0.25%
rate increases for the next few meetings. As a result,
further declines in long-term yields are unlikely in the
near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
7
<PAGE> 12
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Housing 2.7%
Special tax 3.3%
Resource recovery 3.6%
Student loan 3.8%
Transportation 5.7%
Prerefunded 16.8%
Industrial development revenue/Pollution control revenue 22.9%
Other 15.5%
Hospital 13.5%
General obligation 12.2%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Dauphin County, Pennsylvania, General
Authority, Revenue, (School District
Pooled Financing Program II) Series
1997, (AMBAC Insured), Mandatory Put
09/01/01 @ 100, 4.450% 09/01/32 5.1%
-------------------------------------------------
2 Kent County, Michigan, Airport
Facilities Revenue, (Kent County
International Airport Project) Series
1995, AMT, Prerefunded 01/01/05 @
102, 6.100% 01/01/25 4.2%
-------------------------------------------------
3 Lawrence County, Mississippi, PCR,
(Georgia-Pacific Corporation Project)
Series 1998, 4.300% 12/01/00 4.0%
-------------------------------------------------
4 Grenada County, Mississippi, Revenue
Refunding, (Georgia-Pacific
Corporation Project) Series 1998,
4.300% 09/01/00 4.0%
-------------------------------------------------
5 New Jersey, Health Care Facilities
Funding Authority, Revenue Refunding,
Series 1991A, (FHA Insured),
Prerefunded 02/01/01 @ 102, 6.800%
08/01/19 3.3%
-------------------------------------------------
6 New York State, Thruway Authority,
Service Contract Revenue Refunding,
(Local Highway and Bridges Project)
Series 1997, 5.000% 04/01/01 3.2%
-------------------------------------------------
7 Atlanta, Georgia, Urban Residential
Finance Authority, College Facilities
Revenue, (Morris Brown College
Project) Series 1991, Prerefunded
10/01/05 @ 100, 9.500% 12/01/11 3.2%
-------------------------------------------------
8 Phoenix, Arizona, Industrial
Development Authority, Single-Family
Mortgage Revenue, Series 1998D,
4.200% 06/01/02 2.7%
-------------------------------------------------
9 Baileyville, Maine, PCR,
(Georgia-Pacific Corporation Project)
Series 1998, 4.750% 06/01/05 2.7%
-------------------------------------------------
10 Fairfax County, Virginia, Economic
Development Authority, Resource
Recovery, Revenue Refunding, Series
1998A, AMT, (AMBAC Insured), 5.950%
02/01/07 2.5%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
8
<PAGE> 13
NATIONS SHORT-TERM
MUNICIPAL INCOME FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(10/2/93
through
3/31/00) 3.99% 3.83%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Short-Term Municipal Income Fund
from the inception of the share
class. The Lehman 3-Year
Municipal Bond Index is a broad-
based, unmanaged, total return
index composed of investment
grade bonds with maturities of 2
to 3 years. It is unavailable
for investment. The performance
of Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS SHORT-TERM MUNICIPAL LEHMAN 3-YEAR MUNICIPAL BOND
INCOME FUND $12,727 INDEX $13,205
---------------------------- ----------------------------
<S> <C> <C>
Oct. 2 1993 9900.00 10000.00
1993 10005.00 10092.00
9910.00 9957.00
9967.00 10065.00
10051.00 10160.00
1994 10032.00 10161.00
10319.00 10445.00
10535.00 10667.00
10664.00 10894.00
1995 10840.00 11062.00
10888.00 11124.00
10959.00 11214.00
11109.00 11362.00
1996 11271.00 11554.00
11319.00 11600.00
11471.00 11815.00
11644.00 12017.00
1997 11783.00 12187.00
11899.00 12313.00
12018.00 12452.00
12198.00 12699.00
1998 12317.00 12822.00
12435.00 12964.00
12457.00 12908.00
12528.00 13036.00
1999 12601.00 13074.00
Mar. 31 2000 12727.00 13205.00
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS SHORT-TERM MUNICIPAL LEHMAN 3-YEAR MUNICIPAL BOND
INCOME FUND $12,856 INDEX $13,205
---------------------------- ----------------------------
<S> <C> <C>
Oct. 2 1993 10000.00 10000.00
1993 10106.00 10092.00
10010.00 9957.00
10068.00 10065.00
10153.00 10160.00
1994 10133.00 10161.00
10423.00 10445.00
10641.00 10667.00
10772.00 10894.00
1995 10950.00 11062.00
10998.00 11124.00
11069.00 11214.00
11221.00 11362.00
1996 11385.00 11554.00
11434.00 11600.00
11587.00 11815.00
11762.00 12017.00
1997 11902.00 12187.00
12020.00 12313.00
12140.00 12452.00
12321.00 12699.00
1998 12441.00 12822.00
12561.00 12964.00
12584.00 12908.00
12655.00 13036.00
1999 12729.00 13074.00
Mar. 31 2000 12856.00 13205.00
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 9/30/92 10/2/93 6/7/93 10/2/93
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 2.58% 2.35% 1.34% 1.99% -2.93% 1.57% 0.58%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.20% 3.98% 3.64% 3.76% 2.82% 3.60% 3.60%
5 YEARS 4.49% 4.28% 4.07% 4.08% 3.74% 4.00% 4.00%
SINCE INCEPTION 4.15% 3.99% 3.83% 3.76% 3.76% 4.05% 4.05%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 1.00%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
9
<PAGE> 14
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE FOR
THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR
THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk and lower-quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, we aim to limit
The Fund seeks high current income the Fund's exposure to any single credit or market sector.
exempt from federal income taxes In addition, we use a combination of investment strategies,
consistent with moderate including duration management (managing the Fund's
fluctuation of principal. sensitivity to interest rates), market sector selection and
PERFORMANCE REVIEW individual credit reviews. We also seek to limit the
For the 12-month period ended distribution of capital gains when appropriate. As an
March 31, 2000, Nations intermediate-term portfolio, the Fund maintains an average
Intermediate Municipal Bond Fund dollar-weighted maturity of between three and ten years and
Investor A Shares provided a duration between three and six years.
shareholders with a total return PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
of -0.49%.* With a total return of -0.49%, Nations Intermediate
Municipal Bond Fund (Investor A Shares) performed in line
with its peer group, the Lipper Intermediate Municipal Debt
Funds Universe, which returned -0.46% for the 12-month
period ending March 31, 2000. The Fund benefited from a
conservative duration position, which helped protect
principal as interest rates rose. However, this was offset
by underperformance by health care and industrial revenue
bonds during the period.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET FOR THE
COMING YEAR?
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy,
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Intermediate Municipal Funds Debt Universe invest in
municipal debt issues with dollar-weighted
maturities of five to ten years.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
10
<PAGE> 15
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
while the weak inflation data encourages the Fed to remain
on hold. As a result, the Fed has taken the cautious stance
of gradual increments of 0.25% short-term interest rate
increases. After successive increases in February and in
March, the Federal Funds Rate increased from 5.50% to 6.00%.
The Fed likely will continue its gradual course of 0.25%
rate increases for the next few meetings. As a result,
further declines in long-term yields are unlikely in the
near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
11
<PAGE> 16
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 25.5%
Other 11.3%
Hospital 12.8%
Industrial development revenue/Pollution control revenue 10.6%
Prerefunded 10.2%
Student loan 7.4%
Housing 7.2%
Electric 6.4%
Transportation 4.3%
Water 4.3%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Illinois State, Sales Tax Revenue
Refunding, Series 1993S, 6.000%
06/15/03 1.5%
-------------------------------------------------
2 Massachusetts State, GO Refunding,
Series 1993C, (AMBAC Insured), 4.950%
08/01/05 1.5%
-------------------------------------------------
3 Georgetown County, South Carolina,
PCR Refunding, (International Paper
Company Project) Series 1999A, 5.125%
02/01/12 1.4%
-------------------------------------------------
4 Chicago, Illinois, Park District, GO,
Series 1995, 6.600% 11/15/14 1.3%
-------------------------------------------------
5 Education Loans Inc., South Dakota,
Student Loan Revenue, Series 1998,
AMT, (GTD STD LNS), 4.950% 06/01/10 1.2%
-------------------------------------------------
6 Washington State, GO Refunding,
Series 1993R-93B, 5.125% 10/01/04 1.2%
-------------------------------------------------
7 Iowa, Student Loan Liquidity
Corporation, Student Loan Revenue,
(Iowa College Student Aid Project)
Series 1997B, AMT, 4.900% 12/01/05 1.1%
-------------------------------------------------
8 Courtland, Alabama, Industrial
Development Board, Solid Waste
Disposal Revenue, (Champion
International Corporation Project)
Series 1992, 7.000% 06/01/22 1.1%
-------------------------------------------------
9 Philadelphia, Pennsylvania, Water and
Wastewater Systems Revenue, Series
1993, (FGIC Insured), 5.500% 06/15/03 1.1%
-------------------------------------------------
10 Iowa, Student Loan Liquidity
Corporation, Student Loan Revenue
Refunding, Series 1998J, AMT, (AMBAC
Insured), 4.800% 06/01/09 1.0%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
12
<PAGE> 17
NATIONS INTERMEDIATE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(8/17/93
through
3/31/00) 4.27% 3.75%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Intermediate Municipal Bond Fund
from the inception of the share
class. The Lehman 7-Year
Municipal Bond Index is a broad-
based, unmanaged, total return
index composed of investment
grade bonds with maturities of 7
to 8 years. It is unavailable
for investment. The performance
of Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS INTERMEDIATE MUNICIPAL LEHMAN 7-YEAR MUNICIPAL BOND
BOND FUND $12,753 INDEX $14,006
------------------------------ ----------------------------
<S> <C> <C>
Aug. 17 1993 9675 10000
9857 10289
1993 9978 10413
9570 10021
9620 10126
9656 10223
1994 9501 10125
10066 10658
10310 10960
10569 11273
1995 10882 11557
10813 11515
10870 11566
11072 11773
1996 11299 12061
11290 12048
11602 12379
11858 12710
1997 12108 12987
12194 13146
12337 13298
12666 13720
1998 12744 13806
12818 13923
12608 13687
12610 13799
1999 12556 13786
Mar. 31 2000 12753 14006
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS INTERMEDIATE MUNICIPAL LEHMAN 7-YEAR MUNICIPAL BOND
BOND FUND $13,181 INDEX $14,006
------------------------------ ----------------------------
<S> <C> <C>
Aug. 17 1993 10000 10000
10188 10289
1993 10313 10413
9891 10021
9943 10126
9981 10223
1994 9820 10125
10404 10658
10656 10960
10924 11273
1995 11248 11557
11176 11515
11235 11566
11444 11773
1996 11679 12061
11669 12048
11992 12379
12257 12710
1997 12516 12987
12604 13146
12752 13298
13092 13720
1998 13172 13806
13248 13923
13031 13687
13033 13799
1999 12977 13786
Mar. 31 2000 13181 14006
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 7/30/93 8/17/93 12/2/93 11/3/94
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.27% -0.49% -3.77% -1.18% -4.03% -1.19% -2.14%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.36% 4.15% 3.00% 3.54% 3.24% 3.68% 3.68%
5 YEARS 5.06% 4.85% 4.16% 4.36% 4.36% 4.42% 4.42%
SINCE INCEPTION 4.62% 4.27% 3.75% 3.76% 3.76% 5.31% 5.31%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
13
<PAGE> 18
NATIONS MUNICIPAL INCOME FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS MUNICIPAL INCOME FUND'S PERFORMANCE FOR THE 12-MONTH
PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk and lower-quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, we aim to limit
The Fund seeks high current income the Fund's exposure to any single credit or market sector.
exempt from federal income tax In addition, we use a combination of investment strategies,
with the potential for principal including duration management (managing the Fund's
fluctuation associated with sensitivity to interest rates), market sector selection and
investments in long-term municipal individual credit reviews. We also seek to limit the
securities. distribution of capital gains when appropriate. As a
PERFORMANCE REVIEW long-term portfolio, the Fund maintains an average
For the 12-month period ended dollar-weighted maturity of greater than seven years and a
March 31, 2000, Nations Municipal duration of greater than six years.
Income Fund Investor A Shares PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
provided shareholders with a total With a total return of -2.28%, Nations Municipal Income Fund
return of -2.28%.* (Investor A Shares) slightly outperformed its peer group,
the Lipper General Municipal Debt Funds Universe, which
returned -2.40% for the 12-month period ending March 31,
2000. The Fund benefited from a conservative duration
position, but this was offset as health care and industrial
revenue bonds performed relatively poorly during the period.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET FOR THE
COMING YEAR?
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
General Municipal Debt Funds Universe invest at least
65% of their assets in municipal debt securities
in the top four credit ratings.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
14
<PAGE> 19
NATIONS MUNICIPAL INCOME FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
Federal Funds rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
15
<PAGE> 20
NATIONS MUNICIPAL INCOME FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Industrial development revenue/Pollution control revenue 25%
Other 5.3%
General obligation 17.4%
Prerefunded 12.5%
Hospital 11.8%
Housing 7.1%
Water 6.2%
Electric 5.9%
Transportation 5.1%
Education 3.7%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Georgia State, Housing and Finance
Authority, Single-Family Mortgage
Revenue, Series 1999B-2, 6.100%
06/01/31 1.7%
-------------------------------------------------
2 Fairfax County, Virginia, Water
Authority, Water Revenue Refunding,
Series 1997, 5.000% 04/01/29 1.6%
-------------------------------------------------
3 Ohio State, Solid Waste Disposal,
Revenue, (USG Corporation Project)
Series 1997, AMT, 5.600% 08/01/32 1.3%
-------------------------------------------------
4 Michigan State, Hospital Finance
Authority Revenue, (Henry Ford Health
Systems Project) Series 1999A, 6.000%
11/15/19 1.3%
-------------------------------------------------
5 Forsyth, Montana, PCR Refunding,
(Portland General Electric Company
Project) Series 1998A, Mandatory Put
05/01/03 @ 100, 4.600% 05/01/33 1.3%
-------------------------------------------------
6 Murray City, Utah, Hospital Revenue
Refunding, (IHC Health Services, Inc.
Project) Series 1996, (MBIA Insured),
5.000% 05/15/22 1.2%
-------------------------------------------------
7 District of Columbia, Hospital
Revenue Refunding, (Medlantic
Healthcare Group Project) Series
1997A, (MBIA Insured), Prerefunded
08/15/07 @ 102, 5.375% 08/15/15 1.2%
-------------------------------------------------
8 Georgia State, GO, Series 1998B,
5.500% 07/01/10 1.1%
-------------------------------------------------
9 Montgomery County, Ohio, Hospital
Revenue, Series 1999, 6.750% 04/01/22 1.1%
-------------------------------------------------
10 Anchorage, Alaska, Electric Utilities
Revenue, Senior Lien, Series 1996B,
(MBIA Insured), 5.500% 02/01/26 1.1%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
16
<PAGE> 21
NATIONS MUNICIPAL INCOME FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(2/1/91 through
3/31/00) 6.49% 5.92%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Municipal Income Fund from the
inception of the share class.
The Lehman Municipal Bond Index
is a broad-based, unmanaged,
total return index composed of
8,000 investment grade,
long-term maturity bonds. It is
unavailable for investment. The
performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS MUNICIPAL INCOME FUND LEHMAN MUNICIPAL BOND INDEX
$16,938 $18,430
----------------------------- ---------------------------
<S> <C> <C>
Feb. 1 1991 9525 10000
1991 10558 11065
10525 11098
10951 11519
11201 11825
1992 11425 12040
11885 12487
12357 12895
12834 13331
1993 12948 13518
12089 12776
12189 12916
12196 13005
1994 11962 12820
12914 13726
13240 14057
13632 14460
1995 14269 15057
14038 14877
14170 14990
14546 15333
1996 14911 15724
14854 15686
15374 16227
15857 16716
1997 16304 17169
16475 17366
16699 17630
17199 18171
1998 17247 18280
17331 18443
16981 18119
16796 18046
1999 16507 17905
Mar. 31 2000 16938 18430
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS MUNICIPAL INCOME FUND LEHMAN MUNICIPAL BOND INDEX
$17,783 $18,430
----------------------------- ---------------------------
<S> <C> <C>
Feb. 1 1991 10000 10000
1991 11084 11065
11050 11098
11497 11519
11759 11825
1992 11995 12040
12478 12487
12973 12895
13474 13331
1993 13594 13518
12691 12776
12797 12916
12804 13005
1994 12559 12820
13558 13726
13900 14057
14311 14460
1995 14981 15057
14738 14877
14877 14990
15271 15333
1996 15654 15724
15595 15686
16141 16227
16648 16716
1997 17117 17169
17297 17366
17582 17630
18066 18171
1998 18107 18280
18196 18443
17828 18119
17634 18046
1999 17331 17905
Mar. 31 2000 17783 18430
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 2/1/91 2/1/91 6/7/93 6/17/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -2.08% -2.28% -6.90% -2.99% -6.71% -3.03% -3.96%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.68% 4.47% 2.80% 3.79% 2.87% 3.85% 3.85%
5 YEARS 5.79% 5.57% 4.56% 4.93% 4.76% 5.03% 5.03%
SINCE INCEPTION 6.66% 6.49% 5.92% 4.33% 4.33% 5.30% 5.30%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
17
<PAGE> 22
NATIONS CALIFORNIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS CALIFORNIA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks as high a level of the universe of California municipal securities, we aim to
current interest income free of limit the Fund's exposure to any single credit or market
federal income tax and California sector. In addition, we use a combination of investment
state personal income tax as is strategies, including duration management (managing the
consistent with prudent investment Fund's sensitivity to interest rates), market sector
management and preservation of selection and individual credit reviews. We also seek to
capital. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund's average dollar-weighted
For the 12-month period ended maturity will be greater than seven years and its duration
March 31, 2000, Nations California will be more than six years.
Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Shares provided shareholders with With a total return of -1.37%, Nations California Municipal
a total return of -1.37%.* Bond Fund (Investor A Shares) outperformed its peer group,
the Lipper California Municipal Debt Funds Universe, which
returned -2.45% for the 12-month period ending March 31,
2000. The Fund benefited from an overweighting of bonds
maturing in the 10-to-20 year sector, which outperformed
longer-term maturities as interest rates generally rose
during the period.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA?
The state of California is rated "Aa3" by Moody's Investors
Service, Inc., "AA-" by Standard & Poor's Corporation and
"AA" by Fitch IBCA, Inc. The state was recently upgraded
from "AA-" by Fitch IBCA. In addition, the state's outlook
was revised to positive by Moody's in February 2000. These
ratings reflect the state's improved financial position and
its huge, diverse and growing economy. Its rate of personal
income growth has outpaced the national rate over the past
two years and
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the
co-administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
California Municipal Debt Funds Universe invest at
least 65% of their assets in municipal debt issues
that are exempt from taxation in California.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
18
<PAGE> 23
NATIONS CALIFORNIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
the gap between California's and national unemployment rates
continues to shrink. Job growth has been particularly strong
in the high technology sector.
The state's financial performance has also been favorable
over the past several years due to good revenue growth and
conservative budgeting. General fund revenues grew 18%
between fiscal 1997 and fiscal 1999, largely due to higher
than anticipated stock market-related capital gains tax
receipts. The state ended fiscal 1999 with a general fund
cash balance of $847.9 million, or 1.4% of expenditures, and
a $1.26 billion cash balance in its budget reserve fund.
WHAT IS YOUR OUTLOOK FOR CALIFORNIA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
A key challenge for California will be maintaining financial
stability in an economic slowdown. The state has limited
budgetary flexibility due to constitutional minimum funding
requirements for education. California historically
maintains a relatively low budget reserve, which increases
its dependence on short-term borrowing. Debt levels are
moderate, but voter-authorized unissued debt levels are
high, particularly for school construction and water
projects.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
19
<PAGE> 24
NATIONS CALIFORNIA
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 3.1%
Prerefunded 4.8%
Housing 7.8%
Special tax 8.6%
Electric 8.8%
Transportation 10.4%
Hospital 10.8%
Other 7.3%
Water 16.4%
Lease 22%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Fresno, California, Sewer Revenue,
Series 1993A-1, (AMBAC Insured),
6.250% 09/01/14 3.0%
-------------------------------------------------
2 Puerto Rico, Electric Power
Authority, Revenue, 6.000% 07/01/14 2.8%
-------------------------------------------------
3 Port Oakland, California, Port
Revenue Refunding, Series 1997H, AMT,
(MBIA Insured), 5.500% 11/01/15 2.7%
-------------------------------------------------
4 University of California, Hospital
Revenue, (University of California
Medical Center Project) Series 1996,
(AMBAC Insured), 5.750% 07/01/24 2.7%
-------------------------------------------------
5 California State, Department of Water
Resources, Water Systems Revenue,
(Center Valley Project) Series 1993L,
5.700% 12/01/16 2.5%
-------------------------------------------------
6 Beverly Hills, California, Public
Financing Authority, Lease Revenue,
(Capital Imports Project) Series
1998A, 5.000% 06/01/23 2.5%
-------------------------------------------------
7 San Jose Redevelopment Agency,
California, Tax Allocation, (Merged
Area Redevelopment Project) Series
1993, (MBIA Insured), 6.000% 08/01/15 2.2%
-------------------------------------------------
8 California State, Public Works Board,
Lease Revenue, (Department of
Corrections State Prison Project)
Series 1993E, 5.500% 06/01/19 2.1%
-------------------------------------------------
9 Los Angeles, California, Parking
Revenue, Series 1999A, (AMBAC
Insured), 5.250% 05/01/29 1.9%
-------------------------------------------------
10 Los Angeles, California, Convention
and Exhibition Center Authority,
Lease Revenue Refunding, Series
1993A, (MBIA-IBC Insured), 6.000%
08/15/10 1.8%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
20
<PAGE> 25
NATIONS CALIFORNIA
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
10-YEAR NAV** MOP*
<S> <C> <C>
(3/31/90
through
3/31/00) 6.50% 5.98%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
California Municipal Bond Fund
over the last 10 years. The
Lehman Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of 8,000
investment grade, long-term
maturity bonds. It is
unavailable for investment. The
performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS CALIFORNIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
$17,692 $19,950
--------------------------------- ---------------------------
<S> <C> <C>
Mar. 31 1990 9425 10000
9620 10233
9529 10239
9971 10680
10138 10922
10370 11156
10781 11590
1991 11072 11978
11123 12014
11564 12469
11832 12801
12021 13034
12547 13517
12979 13959
13453 14431
1993 13523 14633
12821 13830
12884 13982
12967 14078
12701 13877
13554 14858
13771 15216
14069 15653
1995 14795 16299
14479 16104
14600 16226
14962 16598
15351 17021
15200 16980
15706 17566
16217 18095
1997 16658 18585
16825 18799
17080 19084
17664 19670
17746 19788
17937 19965
17473 19613
17295 19535
1999 17090 19382
Mar. 31 2000 17692 19950
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS CALIFORNIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $18,771 $19,950
--------------------------------- ---------------------------
<S> <C> <C>
Mar. 31 1990 10000 10000
10207 10233
10110 10239
1990 10579 10680
10757 10922
11002 11156
11439 11590
1991 11748 11978
11802 12014
12269 12469
12554 12801
1992 12755 13034
13312 13517
13771 13959
14274 14431
1993 14348 14633
13604 13830
13670 13982
13758 14078
1994 13476 13877
14381 14858
14611 15216
14927 15653
1995 15697 16299
15363 16104
15490 16226
15874 16598
1996 16287 17021
16128 16980
16665 17566
17206 18095
1997 17674 18585
17851 18799
18122 19084
18742 19670
1998 18828 19788
19032 19965
18539 19613
18350 19535
1999 18133 19382
Mar. 31 2000 18771 19950
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B++ INVESTOR C
PRIMARY A+ NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 5/21/99 3/30/84 7/15/98 7/29/99
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -.66% -.46% -5.19% -1.16% -5.91%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.19% 5.19% 3.50% 4.66% 3.75%
5 YEARS 5.47% 5.47% 4.44% 5.16% 4.83%
10 YEARS 6.50% 6.50% 5.98% 6.34% 6.34%
SINCE INCEPTION 7.52% 7.52% 7.19% 7.42% 7.42% 0.30% -0.67%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
+Primary A Shares commenced operations on May 21, 1999 and have no performance
prior to that date. Performance prior to May 21, 1999 is that of Investor A
Shares at NAV, which reflects 12b-1 fees of 0.25%. These 12b-1 fees are not
applicable to Primary A Shares.
++Investor B Shares commenced operations on July 15, 1998 and have no
performance prior to that date. Performance prior to July 15, 1998 is that of
Investor A Shares at NAV, which have lower ongoing expenses than Investor B
shares. If the higher ongoing expenses of Investor B Shares had been reflected,
total returns would have been lower.
21
<PAGE> 26
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS FLORIDA INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Florida municipal securities, we aim to
exempt from federal income and the limit the Fund's exposure to any single credit or market
Florida state intangibles taxes sector. In addition, we use a combination of investment
consistent with moderate strategies, including duration management (managing the
fluctuation of principal. Fund's sensitivity to interest rates), market sector
PERFORMANCE REVIEW selection and individual credit reviews. We also seek to
For the 12-month period ended limit the distribution of capital gains when appropriate. As
March 31, 2000, Nations Florida an intermediate-term portfolio, the Fund maintains an
Intermediate Municipal Bond Fund average dollar-weighted maturity of between three and ten
Investor A Shares provided years and a duration between three and six years.
shareholders with a total return PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
of 0.22%.* With a total return of 0.22%, Nations Florida Intermediate
Municipal Bond Fund (Investor A Shares) outperformed its
peer group, the Lipper Florida Intermediate Municipal Debt
Funds Universe, which returned -0.40% for the 12-month
period ending March 31, 2000. The Fund benefited from its
conservative duration position and the advance refunding of
a substantial percentage of its health care positions.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN FLORIDA?
The state of Florida's general obligation debt has been
rated by Moody's Investors Service, Inc. ("Aa2"), Standard &
Poor's Corporation ("AA+"), and Fitch IBCA, Inc. ("AA"). The
key factor reflected in these ratings is a constitutionally
dedicated second lien pledge of gross receipts of tax
revenues from sales in the electric, natural gas and the
telecommunications industries. This relatively narrow base
of taxation has been strengthened by a growing and
diversifying economy with excellent prospects for future
growth. The state currently has a budget stabilization
reserve equal to 5% of revenues.
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance table.
The performance shown includes the effect of fee
waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Florida Intermediate Municipal Debt Funds Universe
invest at least 65% of their assets in municipal debt
issues that are exempt from taxation in Florida, with
dollar-weighted average maturities of five to ten
years.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
22
<PAGE> 27
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
Both an expanding economy and an influx of retirees have
brought substantial population growth. The large numbers of
retirees have brought stable sources of income which help to
insulate the state's economy from typical business cycles.
WHAT IS YOUR OUTLOOK FOR FLORIDA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
A key challenge for Florida will be successfully addressing
its rapid population growth, which requires infrastructure
spending, particularly for schools. These needs ideally
should be met without impairing finances. In part to address
these needs, the state has established a public education
bond program -- funded with a first and second lien on the
utility gross receipts tax.
The state has a long history of coping successfully with
growth pressures and we are optimistic that this will
continue. At this writing, the state has not passed formal
legislation implementing retail electric deregulation and
providing for the payment of unfunded costs. However, the
state has a limited number of power interconnections with
the rest of the country that limit the amount of power that
can be brought into the state. This limitation should slow
down the impact of retail deregulation and competition from
the rest of the country and provide time for Florida to
implement its own deregulation plan.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
23
<PAGE> 28
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Industrial development revenue/Pollution control revenue 8.2%
General obligation 20.5%
Other 6.6%
Hospital 12.8%
Transportation 13%
Prerefunded 10.8%
Housing 9.1%
Water 6.8%
Special tax 6.2%
Electric 6%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Orange County, Florida, Health
Facilities Authority, Revenue,
(Orlando Regional Healthcare Project)
Series 1996A, (MBIA Insured), 6.250%
10/01/08 2.3%
-------------------------------------------------
2 Orange County, Florida, Tourist
Development, Tax Revenue Refunding,
Series 1998A, AMBAC Insured), 4.750%
10/01/24 1.9%
-------------------------------------------------
3 Palm Beach County, Florida, Housing
Finance Authority, Single-Family
Mortgage Revenue Refunding, Series
1999A, AMT, (GNMA/FNMA COLL), 4.850%
04/01/32 1.9%
-------------------------------------------------
4 Florida, Housing Finance Agency,
Multi-Family Housing Revenue
Refunding, (Altamonte Project) Series
1994C, Mandatory Put 12/01/03 @ 100,
7.000% 12/01/24 1.9%
-------------------------------------------------
5 Jacksonville, Florida, Health
Facilities Authority, Hospital
Revenue, Series 1997B, 5.400%
08/15/18 1.8%
-------------------------------------------------
6 Florida State, Board of Education,
Public Education Capital Outlay GO,
Series 1993D, 5.200% 06/01/11 1.8%
-------------------------------------------------
7 Hillsborough County, Florida, IDR
Refunding, (Tampa Electric Company
Project) Series 1992, 8.000% 05/01/22 1.7%
-------------------------------------------------
8 Dade County, Florida, Aviation
Revenue, (Miami International Airport
Project) Series 1997B, AMT, (FSA
Insured), 5.000% 10/01/06 1.6%
-------------------------------------------------
9 Escambia County, Florida, PCR,
(Champion International Corporation
Project) Series 1996, AMT, 6.400%
09/01/30 1.6%
-------------------------------------------------
10 Tampa, Florida, Sports Authority,
Local Optional Sales Tax Revenue,
(Stadium Project) Series 1997, (MBIA
Insured), 6.000% 01/01/07 1.5%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
24
<PAGE> 29
NATIONS FLORIDA INTERMEDIATE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(12/14/92
through
3/31/00) 5.02% 4.54%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Florida Intermediate Municipal
Bond Fund from the inception of
the share class. The Lehman
7-Year Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of
investment grade bonds with
maturities of 7 to 8 years. It
is unavailable for investment.
The performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS FLORIDA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $13,831 INDEX $14,978
---------------------------- ----------------------------
<S> <C> <C>
Dec. 14 1992 9675 10000
1992 9712 10082
10042 10405
10340 10693
10656 11003
1993 10793 11136
10330 10716
10409 10829
10460 10933
1994 10329 10828
10928 11397
11190 11721
11445 12055
1995 11784 12359
11692 12314
11734 12369
11937 12590
1996 12201 12898
12162 12884
12489 13238
12796 13592
1997 13054 13888
13176 14058
13327 14221
13652 14672
1998 13728 14764
13800 14889
13605 14636
13580 14756
1999 13605 14743
Mar. 31 2000 13831 14978
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS FLORIDA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $14,295 INDEX $14,978
---------------------------- ----------------------------
<S> <C> <C>
Dec. 14 1992 10000 10000
1992 10038 10082
10379 10405
10688 10693
11014 11003
1993 11156 11136
10677 10716
10758 10829
10811 10933
1994 10676 10828
11295 11397
11566 11721
11830 12055
1995 12180 12359
12085 12314
12128 12369
12338 12590
1996 12611 12898
12571 12884
12909 13238
13226 13592
1997 13492 13888
13619 14058
13774 14221
14110 14672
1998 14189 14764
14263 14889
14062 14636
14035 14756
1999 14062 14743
Mar. 31 2000 14295 14978
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 12/11/92 12/14/92 6/7/93 12/17/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.54% 0.22% -3.02% -0.38% -3.25% -0.26% -1.22%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.63% 4.38% 3.23% 3.79% 3.48% 3.83% 3.83%
5 YEARS 5.06% 4.82% 4.14% 4.34% 4.34% 4.37% 4.37%
SINCE INCEPTION 5.22% 5.02% 4.54% 4.11% 4.11% 4.56% 4.56%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
25
<PAGE> 30
NATIONS FLORIDA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS FLORIDA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Florida municipal securities, we aim to
exempt from federal income and the limit the Fund's exposure to any single credit or market
Florida state intangibles taxes sector. In addition, we use a combination of investment
with the potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund maintains an average
For the 12-month period ended dollar-weighted maturity of greater than seven years and a
March 31, 2000, Nations Florida duration of greater than six years.
Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Shares provided shareholders with With a total return of 0.04%, Nations Florida Municipal Bond
a total return of 0.04%.* Fund (Investor A Shares) significantly outperformed its peer
group, the Lipper Florida Municipal Debt Funds Universe,
which returned -2.37% for the 12-month period ending March
31, 2000. The Fund benefited from a conservative duration
position and the advance refunding of a substantial
percentage of its health care positions.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN FLORIDA?
The state of Florida's general obligation debt has been
rated by Moody's Investors Service, Inc. ("Aa 2"), Standard
& Poor's Corporation ("AA+"), and Fitch IBCA, Inc. ("AA").
The key factor reflected included in these ratings is a
constitutionally dedicated second lien pledge of gross
receipts of tax revenues from sales in the electric, natural
gas and the telecommunications industries. This relatively
narrow base of taxation has been strengthened by a growing
and diversifying economy with excellent prospects for future
growth. The state currently has a budget stabilization
reserve equal to 5% of revenues.
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance table.
The performance shown includes the effect of fee
waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Florida Municipal Debt Funds Universe limit their
assets to those securities exempt from taxation in
Florida.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
26
<PAGE> 31
NATIONS FLORIDA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
Both an expanding economy and an influx of retirees have
brought substantial population growth. The large numbers of
retirees have brought stable sources of income which help to
insulate the state's economy from typical business cycles.
WHAT IS YOUR OUTLOOK FOR FLORIDA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
A key challenge for Florida will be successfully addressing
its rapid population growth, which requires infrastructure
spending, particularly for schools. These needs ideally
should be met without impairing finances. In part to address
these needs, the state has established a public education
bond program -- funded with a first and second lien on the
utility gross receipts tax.
The state has a long history of coping successfully with
growth pressures and we are optimistic that this will
continue. At this writing, the state has not passed formal
legislation implementing retail electric deregulation and
providing for the payment of unfunded costs. However, the
state has a limited number of power interconnections with
the rest of the country that limit the amount of power that
can be brought into the state. This limitation should slow
down the impact of retail deregulation and competition from
the rest of the country and provide time for Florida to
implement its own deregulation plan.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
27
<PAGE> 32
NATIONS FLORIDA
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 12.1%
Hospital 17.6%
Other 7.8%
Special tax 13.7%
Transportation 13.4%
Electric 10.9%
Prerefunded 10.8%
Industrial development revenue/Pollution control revenue 3.6%
Resource recovery 3.8%
Housing 6.3%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Okaloosa County, Florida, Gas
Distribution Revenue Refunding,
Series 1994, (MBIA Insured),
Prerefunded 10/01/04 @ 102, 6.875%
10/01/19 3.9%
-------------------------------------------------
2 Palm Beach County, Florida, Solid
Waste Authority, Revenue, Unrefunded
Balance, Series 1997A, (AMBAC
Insured), 6.000% 10/01/10 3.8%
-------------------------------------------------
3 Collier County, Florida, Health
Facilities Authority, Revenue
Refunding, (Moorings, Inc. Project)
Series 1994, 7.000% 12/01/19 3.7%
-------------------------------------------------
4 Jacksonville, Florida, Sales Tax
Revenue, (River City Renaissance
Project) Series 1995, (FGIC Insured),
5.650% 10/01/14 3.6%
-------------------------------------------------
5 Jacksonville, Florida, Sales Tax
Revenue, (River City Renaissance
Project) Series 1995, (FGIC Insured),
5.375% 10/01/18 3.4%
-------------------------------------------------
6 Puerto Rico Commonwealth, GO, Series
1997, (MBIA Insured), 6.500% 07/01/15 3.3%
-------------------------------------------------
7 Guam, Airport Authority, Revenue,
Series 1993A, 6.375% 10/01/10 2.8%
-------------------------------------------------
8 South Miami, Florida, Health
Facilities Authority, Hospital
Revenue Refunding, (Baptist Health
Systems Obligation Group Project)
Series 1995, (MBIA Insured), 5.375%
10/01/16 2.8%
-------------------------------------------------
9 South Broward, Florida, Hospital
District, Revenue Refunding, Series
1993, (FSA Insured), 5.500% 05/01/28 2.7%
-------------------------------------------------
10 Orange County, Florida, Health
Facilities Authority, Revenue, Series
1996A, (MBIA Insured), 6.250%
10/01/16 2.5%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
28
<PAGE> 33
NATIONS FLORIDA
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(12/14/92
through
3/31/00) 4.25% 3.45%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Florida Municipal Bond Fund from
the inception of the share
class. The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of 8,000 investment
grade, long-term maturity bonds.
It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS FLORIDA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $12,384 $13,921
------------------------------ ---------------------------
<S> <C> <C>
Dec. 14 1992 9525 10000
1993 9522 10211
8760 9650
8828 9757
8839 9824
1994 8739 9683
9452 10368
9699 10618
9941 10923
1995 10456 11374
10194 11237
10287 11323
10525 11582
1996 10766 11877
10713 11849
11071 12258
11407 12627
1997 11704 12969
11826 13118
11963 13317
12343 13726
1998 12364 13808
12380 13931
12148 13686
12042 13631
1999 12019 13525
Mar. 31 2000 12384 13921
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS FLORIDA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $13,002 $13,921
------------------------------ ---------------------------
<S> <C> <C>
Dec. 14 1992 10000 10000
1993 9997 10211
9197 9650
9268 9757
9280 9824
1994 9174 9683
9923 10368
10183 10618
10436 10923
1995 10977 11374
10703 11237
10800 11323
11050 11582
1996 11303 11877
11247 11849
11623 12258
11976 12627
1997 11288 12969
12415 13118
12559 13317
12959 13726
1998 12981 13808
12998 13931
12755 13686
12643 13631
1999 12619 13525
Mar. 31 2000 13002 13921
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 12/11/92 12/14/92 6/7/93 12/17/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.26% 0.04% -4.73% -0.67% -4.49% -0.73% -1.68%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.17% 4.95% 3.27% 4.26% 3.34% 4.28% 4.28%
5 YEARS 5.77% 5.55% 4.53% 4.91% 4.74% 4.98% 4.98%
SINCE INCEPTION 4.56% 4.25% 3.45% 3.61% 3.61% 6.69% 6.69%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
29
<PAGE> 34
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS GEORGIA INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Georgia municipal securities, we aim to
exempt from federal and Georgia limit the Fund's exposure to any single credit or market
state income taxes consistent with sector. In addition, we use a combination of investment
moderate fluctuation of principal. strategies, including duration management (managing the
PERFORMANCE REVIEW Fund's sensitivity to interest rates), market sector
For the 12-month period ended selection and individual credit reviews. We also seek to
March 31, 2000, Nations Georgia limit the distribution of capital gains when appropriate. As
Intermediate Municipal Bond Fund an intermediate-term portfolio, the Fund maintains an
Investor A Shares provided average dollar-weighted maturity of between three and ten
shareholders with a total return years and a duration of between three and six years.
of -0.27%.* PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
With a total return of -0.27%, Nations Georgia Intermediate
Municipal Bond Fund (Investor A Shares) outperformed its
peer group, the Lipper Other States Intermediate Municipal
Debt Funds Universe, which returned -0.72% for the 12-month
period ended March 31, 2000. The Fund benefited from its
conservative duration position.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN GEORGIA?
The state of Georgia has earned the highest possible credit
rating from Moody's Investors Service, Inc. ("Aaa"), Fitch
IBCA, Inc. ("AAA") and the second highest rating from
Standard & Poor's Corporation ("AA+"). Key economic factors
reflected in these ratings are Georgia's long history of
diversified economic growth coupled with a high level of job
creation. Employment growth recently has been in the 3.5%
range, which is a very strong level. This job growth is due
in large measure to growth in the services sector. While the
city of Atlanta has
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other
States Intermediate Municipal Debt Funds Universe
invest in municipal debt issues with dollar-weighted
average maturities of five to ten years and are
exempt from taxation on a specified city or state
basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
30
<PAGE> 35
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
emerged as a pre-eminent economic center in the Southeast
region, growth and diversification have occurred throughout
the state. As a reflection of this success, Georgia has had
one of the fastest rates of population growth in the
country.
The state's financial performance has also been quite good.
Economic growth and sound management have led to recent
budget surpluses that have allowed the state to accumulate
sizeable reserve funds. For 1998, total reserves were $1.6
billion, or 9.1% of expenditures. This is a very high level
for a state. The state has estimated an additional surplus
for 1999.
WHAT IS YOUR OUTLOOK FOR GEORGIA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
Key challenges for both Georgia and its local governments
include how to deal with rapid population growth and how to
keep financial performance stable. Rapid population growth
requires capital expenditures for infrastructure such as
roads, water, sewer and education. Planning and spending to
meet these needs requires a long-term view, encompassing
both pay-as-you-go spending and borrowing. The financial
challenge includes working to maintain substantial financial
reserve levels and continuing on a diversified economic
growth path. We believe the state will meet these long-term
challenges successfully.
An additional issue facing Georgia as well as many states
throughout the country is the transition to retail electric
deregulation. Along with a majority of states, Georgia has
not yet passed formal legislation covering this transition
and the payment of unfunded costs. However, this subject is
under active consideration by the Georgia legislature, its
state regulators and market participants. We believe a
successful resolution is likely.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as
</TABLE>
31
<PAGE> 36
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
the recent increase in equity market volatility may shift
investor preferences. On the supply side, new issuance has
been significantly lower in early 2000, as higher yields
have reduced refunding opportunities for issuers. We
estimate that 2000 will end the year with new issuance down
about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
32
<PAGE> 37
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligations 28.8%
Other 5.4%
Prerefunded 12.9%
Industrial development revenue/Pollution control revenue 11.3%
Hospital 10%
Transportation 8.3%
Water 7.5%
Electric 6.2%
Education 6%
Cash 3.6%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Effingham County, Georgia,
Development Authority, Solid Waste
Disposal Revenue, (Fort James
Corporation Project) Series 1998,
AMT, 5.625% 07/01/18 4.0%
-------------------------------------------------
2 Dalton, Georgia, Multiple Utilities
Revenue Refunding, Series 1997, (MBIA
Insured), 6.000% 01/01/06 3.7%
-------------------------------------------------
3 DeKalb County, Georgia, Development
Authority, Revenue, (Emory University
Project) Series 1994A, 6.000%
10/01/14 2.9%
-------------------------------------------------
4 Georgia, George L. Smith II World
Congress Center Authority, Revenue
Refunding, (Domed Stadium Project)
Series 2000, AMT, (MBIA Insured),
6.000% 07/01/05 2.8%
-------------------------------------------------
5 Atlanta, Georgia, Airport Facilities
Revenue Refunding, Series 2000A,
(FGIC Insured), 5.600% 01/01/30 2.7%
-------------------------------------------------
6 Clayton County, Georgia, Hospital
Authority, Revenue Anticipation
Certificates, (Southern Regional
Medical Center Project) Series 1998A,
(MBIA Insured), 5.250% 08/01/09 2.2%
-------------------------------------------------
7 Fulton County, Georgia, Housing
Authority, Multi-Family Housing
Revenue, (Concorde Place Apartments
Project) Series 1996A, AMT,
Prerefunded 07/01/08 @ 100, 6.375%
01/01/27 2.2%
-------------------------------------------------
8 Metropolitan Atlanta Rapid Transit
Authority, Georgia, Revenue
Refunding, Series 1992P, (AMBAC
Insured), 5.900% 07/01/03 2.2%
-------------------------------------------------
9 Georgia State, GO, Series 1993C,
6.500% 07/01/05 2.1%
-------------------------------------------------
10 Bibb County, Georgia, GO, Series
1993, 5.500% 01/01/08 2.0%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
33
<PAGE> 38
NATIONS GEORGIA INTERMEDIATE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(5/4/92 through
3/31/00) 5.36% 4.92%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Georgia Intermediate Municipal
Bond Fund from the inception of
the share class. The Lehman
7-Year Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of
investment grade bonds with
maturities of 7 to 8 years. It
is unavailable for investment.
The performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS GEORGIA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $14,625 INDEX $15,923
---------------------------- ----------------------------
<S> <C> <C>
May 4 1992 9675 10000
9951 10264
10199 10545
1992 10397 10718
10740 11061
11049 11368
11417 11697
1993 11529 11839
10996 11392
11080 11512
11130 11623
1994 10977 11511
11583 12116
11872 12461
12143 12816
1995 12522 13139
12394 13091
12441 13149
12679 13384
1996 12954 13712
12905 13697
13248 14074
13577 14450
1997 13859 14765
13970 14945
14125 15118
14528 15597
1998 14605 15696
14666 15829
14421 15560
14443 15688
1999 14376 15673
Mar. 31 2000 14625 15923
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS GEORGIA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $15,117 INDEX $15,923
---------------------------- ----------------------------
<S> <C> <C>
May 4 1992 10000 10000
10285 10264
10541 10545
10747 10718
11101 11061
11420 11368
11800 11697
1993 11916 11839
11365 11392
11452 11512
11504 11623
11346 11511
11972 12116
12271 12461
12551 12816
1995 12943 13139
12811 13091
12859 13149
13105 13384
13389 13712
13338 13697
13893 14074
14033 14450
1997 14325 14765
14439 14945
14599 15118
15016 15597
15095 15696
15159 15829
14906 15560
14928 15688
1999 14860 15673
Mar. 31 2000 15117 15923
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 3/1/92 5/4/92 6/7/93 6/17/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.02% -0.27% -3.54% -0.96% -3.81% -1.13% -2.08%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.49% 4.26% 3.10% 3.64% 3.34% 3.58% 3.58%
5 YEARS 4.99% 4.77% 4.08% 4.28% 4.28% 4.23% 4.23%
SINCE INCEPTION 5.54% 5.36% 4.92% 3.97% 3.97% 4.65% 4.65%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
34
<PAGE> 39
NATIONS GEORGIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS GEORGIA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Georgia municipal securities, we aim to
exempt from federal and Georgia limit the Fund's exposure to any single credit or market
state income taxes with the sector. In addition, we use a combination of investment
potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund maintains an average
For the 12-month period ended dollar-weighted maturity of greater than seven years and a
March 31, 2000, Nations Georgia duration of greater than six.
Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Shares provided shareholders with With a total return of -1.50%, Nations Georgia Municipal
a total return of -1.50%.* Bond Fund (Investor A Shares) outperformed its peer group,
the Lipper Georgia Municipal Debt Funds Universe, which
returned -2.16% for the 12-month period ended March 31,
2000. The Fund benefited from its conservative duration
position.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN GEORGIA?
The State of Georgia has earned the highest possible credit
rating from Moody's Investors Service, Inc. ("Aaa") and
Fitch IBCA, Inc. ("AAA"), and the second highest rating from
Standard & Poor's Corporation ("AA+"). Key economic factors
reflected in these ratings are Georgia's long history of
diversified economic growth coupled with a high level of job
creation. Employment growth recently has been in the 3.5%
range, which is a very strong level. This job growth is due
in large measure to growth in the services sector. While the
city of Atlanta has emerged as a pre-eminent economic center
in the Southeast region, growth and
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance table.
The performance shown includes the effect of fee
waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Georgia Municipal Debt Funds Universe limit their
assets to those securities that are exempt from
taxation in Georgia.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
35
<PAGE> 40
NATIONS GEORGIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
diversification have occurred throughout the state. As a
reflection of this success, Georgia has had one of the
fastest rates of population growth in the country. The
state's financial performance has also been quite good.
Economic growth and sound management have led to recent
budget surpluses that have allowed the state to accumulate
sizeable reserve funds. For 1998, total reserves were $1.6
billion, or 9.1% of expenditures. This is a very high level
for a state. The state has estimated an additional surplus
for 1999.
WHAT IS YOUR OUTLOOK FOR GEORGIA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
Key challenges for both Georgia and its local governments
include how to deal with rapid population growth and how to
keep financial performance stable. Rapid population growth
requires capital expenditures for infrastructure such as
roads, water, sewer and education. Planning and spending to
meet these needs requires a long-term view, encompassing
both pay-as-you-go spending and borrowing. The financial
challenge includes working to maintain substantial financial
reserve levels and continuing on a diversified economic
growth path. We believe the state will meet these long-term
challenges successfully.
An additional issue facing Georgia as well as many states
throughout the country is the transition to retail electric
deregulation. Along with a majority of states, Georgia has
not yet passed formal legislation covering this transition
and the payment of unfunded costs. However, this subject is
under active consideration by the Georgia legislature, its
state regulators and market participants. We believe a
successful resolution is likely.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
</TABLE>
36
<PAGE> 41
NATIONS GEORGIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
37
<PAGE> 42
NATIONS GEORGIA
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 24.4%
Other 5.6%
Housing 13.1%
Education 12.3%
Cash 11.7%
Industrial development revenue/Pollution control revenue 10.7%
Prerefunded 9.4%
Hospital 7.4%
Transportation 3.6%
Water 1.8%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Georgia State, Housing and Finance
Authority, Single-Family Mortgage
Revenue, Series 1998B-3, 4.400%
06/01/17 5.1%
-------------------------------------------------
2 Georgia State, Housing and Finance
Authority, Single-Family Mortgage
Revenue, Series 1999B-2, 6.100%
06/01/31 4.3%
-------------------------------------------------
3 Georgia State, GO, Series 1999D,
5.800% 11/01/13 4.2%
-------------------------------------------------
4 Forsyth County, Georgia, School
District, GO, Series 1999, 6.000%
02/01/15 4.2%
-------------------------------------------------
5 Georgia, George L. Smith II World
Congress Center Authority, Revenue
Refunding, (Domed Stadium Project)
Series 2000, AMT, (MBIA Insured),
6.000% 07/01/05 4.1%
-------------------------------------------------
6 DeKalb County, Georgia, Development
Authority, Revenue, (Emory University
Project) Series 1994A, 6.000%
10/01/14 4.1%
-------------------------------------------------
7 Roswell, Georgia, GO, Series 1995,
5.600% 02/01/10 4.1%
-------------------------------------------------
8 Henry County, Georgia, Hospital
Authority, Revenue, (Henry Medical
Center Project) Series 1997,
Prerefunded 07/01/07 @ 102, (AMBAC
Insured), 6.000% 07/01/29 4.0%
-------------------------------------------------
9 White County, Georgia, Industrial
Development Authority, Revenue
Refunding, (Springs Industries, Inc.
Project) Series 1992, 6.850% 06/01/10 4.0%
-------------------------------------------------
10 Fulco, Georgia, Hospital Authority,
Revenue Anticipation Certificates,
(St. Joseph Hospital Project) Series
1994, 5.500% 10/01/14 4.0%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
38
<PAGE> 43
NATIONS GEORGIA
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(12/30/93
through
3/31/00) 4.12% 3.31%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Georgia Municipal Bond Fund from
the inception of the share
class. The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of 8,000 investment
grade, long-term maturity bonds.
It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS GEORGIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $12,257 $13,634
------------------------------ ---------------------------
<S> <C> <C>
Dec. 30 1993 9525 10000
8818 9451
8891 9555
8845 9621
1994 8705 9483
9397 10154
9633 10398
9905 10697
1995 10396 11139
10171 11005
10226 11089
10480 11343
1996 10729 11632
10685 11604
11050 12004
11340 12366
1997 11646 12701
11776 12847
11946 13042
12342 13442
1998 12377 13523
12444 13643
12219 13403
12092 13350
1999 11913 13246
Mar. 31 2000 12257 13634
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS GEORGIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $12,868 $13,643
------------------------------ ---------------------------
<S> <C> <C>
Dec. 30 1993 10000 10000
9268 9451
9334 9555
9286 9621
1994 9139 9483
9865 10154
10114 10398
10399 10697
1995 10915 11139
10678 11005
10736 11089
11003 11343
1996 11264 11632
11217 11604
11601 12004
11905 12366
1997 12227 12701
12363 12847
12541 13042
12958 13442
1998 12994 13523
13064 13643
12828 13403
12694 13350
1999 12506 13246
Mar. 31 2000 12868 13634
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 1/13/94 12/30/93 10/21/93 11/3/94
-------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -1.27% -1.50% -6.13% -2.19% -5.96% -2.29% -3.24%
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.91% 4.69% 3.02% 4.00% 3.07% 3.99% 3.99%
5 YEARS 5.72% 5.46% 4.44% 4.86% 4.69% 4.92% 4.92%
SINCE INCEPTION 4.29% 4.12% 3.31% 3.52% 3.52% 6.58% 6.58%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
39
<PAGE> 44
NATIONS MARYLAND INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS MARYLAND INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Maryland municipal securities, we aim to
exempt from federal and Maryland limit the Fund's exposure to any single credit or market
state income taxes consistent with sector. In addition, we use a combination of investment
moderate fluctuation of principal. strategies, including duration management (managing the
PERFORMANCE REVIEW Fund's sensitivity to interest rates), market sector
For the 12-month period ended selection and individual credit reviews. We also seek to
March 31, 2000, Nations Maryland limit the distribution of capital gains when appropriate. As
Intermediate Municipal Bond Fund an intermediate-term portfolio, the Fund normally maintains
Investor A Shares provided an average dollar-weighted maturity of between three and ten
shareholders with a total return years and a duration of between three and six years.
of -0.06%.* PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
With a total return of -0.06%, Nations Maryland Intermediate
Municipal Bond Fund (Investor A Shares) outperformed its
peer group, the Lipper Other States Intermediate Municipal
Debt Funds Universe, which returned -0.72%, for the 12-month
period ended March 31, 2000. The Fund benefited from a
slightly shorter duration than its peer group, which helped
protect principal in a rising interest rate environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN MARYLAND?
The state of Maryland has earned the highest possible credit
rating from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). While Maryland has a diverse economy, economic
growth has been led by the service and construction sectors.
The federal government has historically played a large and
positive role in Maryland's economy. While the effects of
the federal government have been centered in Montgomery
County (a northern suburb of Washington, D.C.), the federal
presence
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt issues with
dollar-weighted average maturities of five to ten
years and are exempt from taxation on a specified
city or state basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
40
<PAGE> 45
NATIONS MARYLAND INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
is also significant in many other parts of the state.
Maryland's finances have been historically sound. For the
last several years the state has been operating at a
surplus. For fiscal 1999, the general fund is estimated to
have produced a surplus of $383 million out of general fund
balance of $1.98 billion, or 17.8% of expenditures. This is
a sizeable reserve that can be used to cushion the state
through a recession or other negative or unusual event.
WHAT IS YOUR OUTLOOK FOR MARYLAND AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
A key challenge for the state and its local governments is
to maintain infrastructure and economic development-related
spending without compromising finances. Specifically,
education standards and spending must be maintained for the
state to attract and retain workers. Other areas of concern
are infrastructure related -- roads, water and sewer -- and
the criminal justice system. Over the long term, we believe
the state can effectively meet these challenges.
The state has made considerable progress in implementing a
transition to retail electric deregulation. Comprehensive
legislation was passed in April of 1999 to guide the state
through a multi-year transition.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, we think
further declines in long-term yields are unlikely in the
near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
41
<PAGE> 46
NATIONS MARYLAND INTERMEDIATE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 35.7
Resource recovery 1.9
Industrial development revenue/Pollution control revenue 3.1
Hospital 4.9
Water 5.4
Education 6.9
Transportation 9.1
Housing 12.9
Other 5.3
Prerefunded 14.8
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Maryland State, Transportation
Authority, Transportation Revenue,
Series 1992, 5.700% 07/01/05 2.2%
-------------------------------------------------
2 Maryland State, Health and Higher
Education Facilities Authority,
Revenue, (Johns Hopkins University
Project) Series 1999, 6.000% 07/01/39 2.1%
-------------------------------------------------
3 Maryland State, Community Development
Administration, Development Revenue,
(Lexington Terrace Senior Housing, LP
Project) Series 1998B, AMT, 3.900%
10/01/02 2.0%
-------------------------------------------------
4 Maryland State, Community Development
Administration, Department of Housing
and Community Development, Revenue,
(Single-Family Program) Series
1998-3, AMT, 4.500% 04/01/08 2.0%
-------------------------------------------------
5 Montgomery County, Maryland,
Consolidated Public Improvement GO,
Series 1993A, 4.900% 10/01/07 1.8%
-------------------------------------------------
6 Washington, District of Columbia,
Metropolitan Area Transportation
Authority, Revenue Refunding, Series
1993, (FGIC Insured), 5.000% 07/01/06 1.8%
-------------------------------------------------
7 Washington, Suburban Sanitation
District Authority, Maryland, Water
Supply GO Refunding, Series 1993,
5.100% 12/01/07 1.8%
-------------------------------------------------
8 University of Maryland, Systems
Auxiliary Facilities and Tuition
Revenue, Series 1996A, 5.600%
04/01/14 1.7%
-------------------------------------------------
9 Montgomery County, Maryland, GO,
Series 1991, Prerefunded 10/01/01 @
102, 6.100% 10/01/05 1.6%
-------------------------------------------------
10 Maryland State, Health and Higher
Education Facilities Authority,
Revenue Refunding, (Johns Hopkins
Hospital Project) Series 1993, 5.500%
07/01/07 1.6%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
42
<PAGE> 47
NATIONS MARYLAND INTERMEDIATE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(9/1/90 through
3/31/00) 5.70% 5.33%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Maryland Intermediate Municipal
Bond Fund from the inception of
the share class. The Lehman
7-Year Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of
investment grade bonds with
maturities of 7 to 8 years. It
is unavailable for investment.
The performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS MARYLAND INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $16,454 INDEX $18,636
----------------------------- ----------------------------
<S> <C> <C>
Sep. 1 1990 9675 10000
1990 10068 10399
10297 10646
10459 10829
10762 11241
1991 11092 11612
11105 11602
11453 12013
11697 12342
1992 11875 12545
12227 12946
12551 13305
12946 13690
1993 13064 13856
12472 13334
12568 13474
12603 13603
1994 12449 13473
13143 14181
13494 14584
13799 15000
1995 14145 15378
14067 15322
14094 15390
14335 15665
1996 14630 16049
14576 16031
14948 16472
15281 16912
1997 15588 17281
15687 17491
15858 17694
16279 18255
1998 16382 18370
16464 18526
16237 18211
16235 18361
1999 16209 18344
Mar. 31 2000 16454 18636
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS MARYLAND INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $17,007 INDEX $18,636
----------------------------- ----------------------------
<S> <C> <C>
Sep. 1 1990 10000 10000
1990 10407 10399
10643 10646
10810 10829
11124 11241
1991 11465 11612
11478 11602
11838 12013
12090 12342
1992 12274 12545
12837 12946
12972 13305
13381 13690
1993 13503 13856
12891 13334
12990 13474
13027 13603
1994 12868 13473
13584 14181
13947 14584
14262 15000
1995 14620 15378
14540 15322
14567 15390
14817 15665
1996 15122 16049
16066 16031
15450 16472
15794 16912
1997 16112 17281
16213 17491
16390 17694
16826 18255
1998 16932 18370
17017 18526
16782 18211
16780 18361
1999 16754 18344
Mar. 31 2000 17007 18636
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 9/1/90 9/1/90 6/8/93 6/17/92
-------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.17% -0.06% -3.29% -0.74% -3.61% -0.82% -1.78%
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.34% 4.12% 2.98% 3.51% 3.20% 3.47% 3.47%
5 YEARS 4.81% 4.60% 3.92% 4.10% 4.10% 4.08% 4.08%
SINCE INCEPTION 5.87% 5.70% 5.33% 3.80% 3.80% 4.31% 4.31%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
43
<PAGE> 48
NATIONS MARYLAND
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS MARYLAND MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Maryland municipal securities, we aim to
exempt from federal and Maryland limit the Fund's exposure to any single credit or market
state income taxes with the sector. In addition, we use a combination of investment
potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund normally maintains an
For the 12-month period ended average dollar-weighted maturity of greater than seven years
March 31, 2000, Nations Maryland and a duration of greater than six years.
Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Shares provided shareholders with With a total return of -0.49%, Nations Maryland Municipal
a total return of -0.49%.* Bond Fund (Investor A Shares) significantly outperformed its
peer group, the Lipper Maryland Municipal Debt Funds
Universe, which returned -1.76% for the 12-month period. The
Fund benefited from an overweighting in higher quality
bonds, which retained more of their value than bonds of
lesser quality. This, coupled with a shorter duration,
helped the Fund outperform its peers.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN MARYLAND?
The state of Maryland has earned the highest possible credit
rating from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). While Maryland has a diverse economy, economic
growth has been led by the service and construction sectors.
The federal government has historically played a large and
positive role in Maryland's economy. While the effects of
the federal government have been centered in Montgomery
County (a northern suburb of Washington, D.C.), the federal
presence is also significant in many other parts of the
state.
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Maryland Municipal Debt Funds Universe limit their
assets to those securities that are exempt from
taxation in Maryland.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
44
<PAGE> 49
NATIONS MARYLAND
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
Maryland's finances have been historically sound. For the
last several years the state has been operating at a
surplus. For fiscal 1999, the general fund is estimated to
have produced a surplus of $383 million out of general fund
balance of $1.98 billion, or 17.8% of expenditures.
This is a sizeable reserve that can be used to cushion the
state through a recession or other negative or unusual
event.
WHAT IS YOUR OUTLOOK FOR MARYLAND AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
A key challenge for the state and its local governments is
to maintain infrastructure and economic development-related
spending without compromising finances. Specifically,
education standards and spending must be maintained for the
state to attract and retain workers. Other areas of concern
are infrastructure related -- roads, water and sewer -- and
the criminal justice system. Over the long term, we believe
the state can effectively meet these challenges.
The state has made considerable progress in implementing a
transition to retail electric deregulation. Comprehensive
legislation was passed in April of 1999 to guide the state
through a multi-year transition.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, we think
further declines in long-term yields are unlikely in the
near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
45
<PAGE> 50
NATIONS MARYLAND
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 33.5%
Other 5.4%
Education 22.2%
Housing 12.6%
Hospital 6.5%
Prerefunded 5.9%
Lease 4.0%
Resource recovery 3.9%
Transportation 3.2%
Industrial development revenue/Pollution control revenue 2.8%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 University of Maryland, Systems
Auxiliary Facilities and Tuition
Revenue, Series 1996A, 5.600%
04/01/13 7.2%
-------------------------------------------------
2 Maryland State, Health and Higher
Education Facilities Authority,
Revenue, (Johns Hopkins University
Project) Series 1999, 6.000% 07/01/39 5.7%
-------------------------------------------------
3 Howard County, Maryland, Consolidated
Public Improvement GO, Series 2000A,
5.250% 02/15/17 5.2%
-------------------------------------------------
4 Maryland State, Health and Higher
Education Facilities Authority,
Revenue, (Hospital Charity Obligation
Group) Series 1997D, Mandatory Put
11/01/03 @ 100, 4.600% 11/01/26 4.8%
-------------------------------------------------
5 Montgomery County, Maryland,
Consolidated Public Improvement GO,
Series 1992A, 5.800% 07/01/07 4.4%
-------------------------------------------------
6 Wilcomico County, Maryland, Public
Improvement GO, Series 1997, (MBIA
Insured), 4.800% 12/01/10 3.5%
-------------------------------------------------
7 Maryland State, Health and Higher
Education Facilities Authority,
Revenue, (John Hopkins Hospital
Redevelopment Project) Series 1979,
5.750% 07/01/09 3.0%
-------------------------------------------------
8 Harford County, Maryland, GO, Series
1997, 5.500% 12/01/07 2.9%
-------------------------------------------------
9 Maryland State, Community Development
Administration, Department of Housing
and Community Development, Revenue,
Series 1999H, AMT, 6.000% 09/01/17 2.8%
-------------------------------------------------
10 Maryland State, State and Local
Facilities Loan GO, Series 1999-2,
5.000% 07/15/07 2.8%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
46
<PAGE> 51
NATIONS MARYLAND
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(11/4/93
through
3/31/00) 4.29% 3.50%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Maryland Municipal Bond Fund
from the inception of the share
class. The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of 8,000 investment
grade, long-term maturity bonds.
It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS MARYLAND MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $12,462 $13,799
------------------------------- ---------------------------
<S> <C> <C>
Nov. 4 1993 9525 10000
1993 9767 10121
8993 9565
9034 9671
9015 9737
1994 8863 9598
9580 10277
9794 10524
10044 10826
1995 10551 11273
10319 11138
10384 11223
10619 11480
1996 10868 11773
10832 11744
11167 12150
11514 12515
1997 11846 12854
11960 13002
12110 13200
12458 13605
1998 12499 13687
12523 13809
12296 13565
12257 13511
1999 12198 13406
Mar. 31 2000 12462 13799
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS MARYLAND MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $13,083 $13,799
------------------------------- ---------------------------
<S> <C> <C>
Nov. 4 1993 10000 10000
1993 10254 10121
9442 9565
9484 9671
9464 9737
1994 9305 9598
10057 10277
10283 10524
10545 10826
1995 11077 11273
10834 11138
10902 11223
11148 11480
1996 11410 11773
11373 11744
11724 12150
12089 12515
1997 12437 12854
12556 13002
12714 13200
13079 13605
1998 13122 13687
13147 13809
12909 13565
12868 13511
1999 12806 13406
Mar. 31 2000 13083 13799
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 9/20/94 11/4/93 10/21/93 11/3/94
-------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.25% -0.49% -5.23% -1.19% -5.00% -1.23% -2.18%
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.00% 4.79% 3.10% 4.10% 3.17% 4.12% 4.12%
5 YEARS 5.62% 5.41% 4.38% 4.76% 4.60% 4.85% 4.85%
SINCE INCEPTION 6.15% 4.29% 3.50% 3.33% 3.33% 6.42% 6.42%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
47
<PAGE> 52
NATIONS NORTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of North Carolina municipal securities, we aim
exempt from federal and North to limit the Fund's exposure to any single credit or market
Carolina state income taxes sector. In addition, we use a combination of investment
consistent with moderate strategies, including duration management (managing the
fluctuation of principal. Fund's sensitivity to interest rates), market sector
PERFORMANCE REVIEW selection and individual credit reviews. We also seek to
For the 12-month period ended limit the distribution of capital gains when appropriate. As
March 31, 2000, Nations North an intermediate-term portfolio, the Fund maintains an
Carolina Intermediate Municipal average dollar-weighted maturity of between three and ten
Bond Fund Investor A Shares years and a duration of between three and six years.
provided shareholders with a total PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
return of -0.18%.* With a total return of -0.18%, Nations North Carolina
Intermediate Municipal Fund (Investor A Shares) outperformed
its peer group, the Lipper Other States Intermediate
Municipal Debt Funds Universe, which returned -0.72% for the
12-month period ended March 31, 2000. The Fund benefited
from a slightly shorter duration than its peer group,
helping to protect principal in a rising interest-rate
environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN NORTH
CAROLINA?
The state of North Carolina has earned the highest possible
credit rating from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). The long-term diverse growth in the state's economy
has significantly reduced reliance on textiles and
manufacturing. The most significant growth has occurred in
three sectors: banking/finance, services and trade. However,
other areas have participated, most notably the high
technology
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt issues with
dollar-weighted average maturities of five to ten
years and are exempt from taxation on a specified
city or state basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
48
<PAGE> 53
NATIONS NORTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
industry in Raleigh's Research Triangle Park. The state has
a long track record of successful financial management. For
instance, general fund tax collections for 1999 were at
$11.97 billion, an increase of 7.9%. There have been some
drawdowns in the fund for 1999 in order to remedy a series
of one-time problems. However, we believe finances are still
strong and should remain so.
WHAT IS YOUR OUTLOOK FOR NORTH CAROLINA AND THE MUNICIPAL
BOND MARKET FOR THE COMING YEAR?
A concern remains regarding the ability of state and local
governments to pay for infrastructure such as roads, water
and sewer without damaging financial operations. Of
particular importance is the continued funding of education
to attract new employees from outside North Carolina.
Because of very low unemployment rates in the state, it is
important both to maintain this steady flow of workers into
the state and to provide training for the current labor
pool. Based on past performance, we believe that these goals
can be largely achieved.
Another challenge is retail electric deregulation. While no
legislation has been passed yet, the legislature and key
parties are actively considering a wide number of solutions
for financing unfunded costs. We believe this challenge can
be met.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
49
<PAGE> 54
NATIONS NORTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Water 3.1%
Hospital 24.0%
General obligation 25.1%
Other 6.0%
Prerefunded 14.4%
Housing 7.8%
Education 5.9%
Industrial development revenue/Pollution control revenue 5.5%
Cash 4.6%
Transportation 3.6%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Grace Hospital,
Inc. - Morganton Project) Series
1996, (AMBAC Insured), 5.250%
10/01/16 2.5%
-------------------------------------------------
2 New Jersey, Financing Authority,
Health Care Facilities Revenue,
(Riverwood Center Inc. Project)
Series 1991A, (FSA Insured),
Prerefunded 07/01/01 @ 102, 9.900%
07/01/21 2.3%
-------------------------------------------------
3 North Carolina State, GO, Series
1997A, 5.100% 03/01/06 2.1%
-------------------------------------------------
4 Charlotte-Mecklenburg Hospital
Authority, Revenue, (Carolinas
Healthcare System Project) Series
1997A, 5.125% 01/15/22 2.1%
-------------------------------------------------
5 North Carolina, Housing Finance
Agency, Single-Family Housing
Revenue, (Home Ownership Project)
Series 1998A-1, AMT, 5.350% 01/01/17 2.0%
-------------------------------------------------
6 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue Refunding, (Novant Health,
Inc. Project) Series 1998A, (MBIA
Insured), 5.000% 10/01/07 2.0%
-------------------------------------------------
7 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Carolina Medicorp Inc.
Project) Series 1996, 5.100% 05/01/07 1.9%
-------------------------------------------------
8 University of North Carolina,
University Utilities Systems Revenue
Refunding, Series 1993, 5.200%
08/01/06 1.9%
-------------------------------------------------
9 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Rex Hospital, Inc. Project)
Series 1993, Prerefunded 06/01/03 @
102, 6.250% 06/01/17 1.7%
-------------------------------------------------
10 Courtland, Alabama, Industrial
Development Board, Solid Waste
Disposal Revenue, (Champion
International Corporation Project)
Series 1992, 7.000% 06/01/22 1.6%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
50
<PAGE> 55
NATIONS NORTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(12/14/92
through
3/31/00) 4.84% 4.36%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
North Carolina Intermediate
Municipal Bond Fund from the
inception of the share class.
The Lehman 7-Year Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of investment grade
bonds with maturities of 7 to 8
years. It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS NORTH CAROLINA LEHMAN 7-YEAR MUNICIPAL BOND
INTERMEDIATE MUNICIPAL BOND FUND INDEX
-------------------------------- ----------------------------
<S> <C> <C>
Dec. 14 1992 9675 10000
1992 9703 10082
10020 10405
10314 10693
10631 11003
1993 10701 11136
10265 10716
10320 10829
10368 10933
1994 10243 10828
10835 11397
11090 11721
11371 12055
1995 11668 12359
11570 12314
11628 12369
11847 12590
1996 12094 12898
12062 12884
12395 13238
12687 13592
1997 12942 13888
13048 14058
13185 14221
13530 14672
1998 13609 14764
13675 14889
13453 14636
13447 14756
1999 13392 14743
Mar. 31 2000 13650 14978
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS NORTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND
$14,109 INDEX $14,978
-------------------------------- ----------------------------
<S> <C> <C>
Dec. 14 1992 10000 10000
10028 10082
10357 10405
10660 10693
10988 11003
1993 11060 11136
10610 10716
10666 10829
10716 10933
10587 10828
11199 11397
11463 11721
11753 12055
1995 12060 12359
11958 12314
12018 12369
12245 12590
12500 12898
12468 12884
12812 13238
13113 13592
1997 13376 13888
13486 14058
13628 14221
13985 14672
14066 14764
14135 14889
13906 14636
13899 14756
1999 13842 14743
Mar. 31 2000 14109 14978
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 12/11/92 12/14/92 6/7/93 12/16/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.05% -0.18% -3.43% -0.87% -3.73% -0.95% -1.91%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.43% 4.21% 3.06% 3.60% 3.29% 3.56% 3.56%
5 YEARS 4.94% 4.73% 4.04% 4.23% 4.23% 4.21% 4.21%
SINCE INCEPTION 5.05% 4.84% 4.36% 3.96% 3.96% 4.35% 4.35%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
51
<PAGE> 56
NATIONS NORTH CAROLINA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS NORTH CAROLINA MUNICIPAL BOND FUND'S PERFORMANCE FOR
THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR
THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of North Carolina municipal securities, we aim
exempt from federal and North to limit the Fund's exposure to any single credit or market
Carolina state income taxes with sector. In addition, we use a combination of investment
the potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund normally maintains an
For the 12-month period ended average dollar-weighted maturity of greater than seven years
March 31, 2000, Nations North and a duration of greater than six years.
Carolina Municipal Bond Fund PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Investor A Shares provided With a total return of -1.20%, Nations North Carolina
shareholders with a total return Municipal Bond Fund (Investor A Shares) significantly
of -1.20%.* outperformed its peer group, the Lipper North Carolina
Municipal Debt Funds Universe, which returned -2.17% for the
12-month period ended March 31, 2000. The Fund benefited
from an overweighting in higher quality bonds. This, coupled
with a slightly shorter duration, enabled the Fund to
outperform its peer group.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN NORTH
CAROLINA?
The state of North Carolina has earned the highest possible
credit rating from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). The long-term diverse growth in the state's economy
has significantly reduced reliance on textiles and
manufacturing. The most significant growth has occurred in
three sectors: banking/finance, services and trade. However,
other areas have participated, most notably the high
technology industry in Raleigh's Research Triangle Park. The
state has a long track record of
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
North Carolina Municipal Debt Funds Universe limit
their assets to those securities that are exempt from
taxation in North Carolina.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
52
<PAGE> 57
NATIONS NORTH CAROLINA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
successful financial management. For instance, general fund
tax collections for 1999 were at $11.97 billion, an increase
of 7.9%. There have been some drawdowns in the fund for 1999
in order to remedy a series of one-time problems. However,
we believe finances are still strong and should remain so.
WHAT IS YOUR OUTLOOK FOR NORTH CAROLINA AND THE MUNICIPAL
BOND MARKET FOR THE COMING YEAR?
A concern remains regarding the ability of state and local
governments to pay for infrastructure such as roads, water
and sewer without damaging financial operations. Of
particular importance is the continued funding of education
to attract new employees from outside North Carolina.
Because of very low unemployment rates in the state, it is
important both to maintain this steady flow of workers into
the state and to provide training for the current labor
pool. Based on past performance, we believe that these goals
can be largely achieved.
Another challenge is retail electric deregulation. While no
legislation has been passed yet, the legislature and key
parties are actively considering a wide number of solutions
for financing unfunded costs. We believe this challenge can
be met.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
53
<PAGE> 58
NATIONS NORTH CAROLINA
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Electric 2.5%
Lease 4.9%
Cash 6.3%
Housing 8.8%
General obligation 25.4%
Industrial development revenue/Pollution control revenue 18.7%
Water 12.4%
Hospital 11.1%
Prerefunded 9.9%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Mecklenburg County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, Revenue
Refunding, (Fluor Corporation
Project) Series 1993, 5.250% 12/01/09 5.6%
-------------------------------------------------
2 Johnston County, North Carolina, GO,
Series 2000, (FGIC Insured), 5.500%
03/01/15 4.9%
-------------------------------------------------
3 Martin County, North Carolina,
Industrial Facilities and Pollution
Control Financing Authority, Solid
Waste Disposal Revenue, (Weyerhaeuser
Company Project) Series 1993, AMT,
5.650% 12/01/23 4.5%
-------------------------------------------------
4 Onslow County, North Carolina,
Combined Enterprise Systems, Revenue,
Series 1994, (MBIA Insured), 5.875%
06/01/09 3.9%
-------------------------------------------------
5 North Carolina State, GO, Series
1997, 5.100% 06/01/09 3.8%
-------------------------------------------------
6 Greensboro, North Carolina,
Enterprise Systems Revenue, Series
1998A, 5.500% 06/01/08 3.4%
-------------------------------------------------
7 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Pitt County Memorial
Hospital Project) Series 1998B,
4.750% 12/01/28 3.1%
-------------------------------------------------
8 Fayetteville, North Carolina, Public
Works Commission, Revenue Refunding,
Series 1997, (FSA Insured), 5.250%
03/01/07 2.9%
-------------------------------------------------
9 North Carolina, Medical Care
Commission, Health Care Facilities
Revenue, (Gaston Memorial Hospital
Project) Series 1995, (AMBAC-TCRS
Insured), 5.250% 02/15/07 2.9%
-------------------------------------------------
10 North Carolina, Housing Finance
Agency, Revenue, (Home Ownership
Project) Series 1998A-2, AMT, 5.200%
01/01/20 2.8%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
54
<PAGE> 59
NATIONS NORTH CAROLINA
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(11/1/93
through
3/31/00) 4.16% 3.37%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
North Carolina Municipal Bond
Fund from the inception of the
share class. The Lehman
Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of 8,000
investment grade long-term
maturity bonds. It is
unavailable for investment. The
performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS NORTH CAROLINA MUNICIPAL LEHMAN MUNICIPAL BOND INDEX
BOND FUND $12,369 $13,799
-------------------------------- ---------------------------
<S> <C> <C>
Nov. 1 1993 9525 10000
1993 9673 10121
8919 9565
8931 9671
8923 9737
1994 8781 9598
9518 10277
9737 10524
9980 10826
1995 10550 11273
10282 11138
10328 11223
10575 11480
1996 10814 11773
10758 11744
11114 12150
11461 12515
1997 11771 12854
11903 13002
12072 13200
12424 13605
1998 12473 13687
12520 13809
12280 13565
12176 13511
1999 12047 13406
Mar. 31 2000 12369 13799
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS NORTH CAROLINA MUNICIPAL LEHMAN MUNICIPAL BOND INDEX
BOND FUND $12,987 $13,799
-------------------------------- ---------------------------
<S> <C> <C>
Nov. 1 1993 10000 10000
1993 10155 10121
9364 9565
9375 9671
9365 9737
1994 9219 9598
9993 10277
10223 10524
10477 10826
1995 11076 11273
10794 11138
10843 11223
11102 11480
1996 11353 11773
11294 11744
11668 12150
12033 12515
1997 12358 12854
12486 13002
12674 13200
13044 13605
1998 13095 13687
13145 13809
12893 13565
12784 13511
1999 12649 13406
Mar. 31 2000 12987 13799
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 1/11/94 11/1/93 10/21/93 11/3/94
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.98% -1.20% -5.87% -1.90% -5.68% -1.99% -2.93%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.98% 4.76% 3.09% 4.08% 3.15% 4.08% 4.08%
5 YEARS 5.60% 5.38% 4.36% 4.74% 4.57% 4.80% 4.80%
SINCE INCEPTION 4.19% 4.16% 3.37% 3.48% 3.48% 6.56% 6.56%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
55
<PAGE> 60
NATIONS SOUTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management
Team of Banc of America Capital The Fund balances its investments between high quality,
Management, Inc., investment investment grade issues through which it seeks to reduce
sub-adviser to the Fund. credit and liquidity risk, and lower quality, investment
grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of South Carolina municipal securities, we aim
exempt from federal and South to limit the Fund's exposure to any single credit or market
Carolina state income taxes sector. In addition, we use a combination of investment
consistent with moderate strategies, including duration management (managing the
fluctuation of principal. Fund's sensitivity to interest rates), market sector
selection and individual credit reviews. We also seek to
PERFORMANCE REVIEW limit the distribution of capital gains when appropriate. As
For the 12-month period ended an intermediate-term portfolio, the Fund maintains an
March 31, 2000, Nations South average dollar-weighted maturity of between three and ten
Carolina Intermediate Municipal years and a duration of between three and six years.
Bond Fund Investor A Shares
provided shareholders with a total PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
return of -0.14%.*
With a total return of -0.14%, Nations South Carolina
Intermediate Municipal Bond Fund (Investor A Shares)
outperformed its peer group, the Lipper Other States
Intermediate Municipal Debt Funds Universe, which returned
-0.72% for the 12-month period ended March 31, 2000. The
Fund benefited from its conservative duration position.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN SOUTH
CAROLINA?
The state of South Carolina has earned the highest possible
credit rating from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). South Carolina has been diversifying its economy by
reducing its reliance on textile manufacturing and
agriculture. The state has been a participant in the overall
growth of the Southeast region. Contributing to this growth
has been a low cost of living and low wages, which have
attracted manufacturing employment. During 1999, capital
investment by the manufacturing sector was $6.4 billion. As
the manufacturing base expands, new
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt issues with
dollar-weighted average maturities of five to ten
years and are exempt from taxation on a specified
city or state basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
56
<PAGE> 61
NATIONS SOUTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
jobs at higher wages are being created. An additional credit
strength is South Carolina's history of sound financial
management. The state's fiscal 1999 general fund operating
surplus was $191 million. This increased the total general
fund balance to $366 million, or 8.1% of expenditures. This
is a very high level for a state to achieve.
WHAT IS YOUR OUTLOOK FOR SOUTH CAROLINA AND THE MUNICIPAL
BOND MARKET FOR THE COMING YEAR?
Supporting education is an important challenge for the state
and its local government units. This would serve many
purposes, but from an economic standpoint, it would provide
trained workers for a low unemployment economy and serve as
an inducement to workers to relocate from other areas. A
well-educated and trained workforce also will aid in
diversifying the state's economy. Another challenge is to
maintain tight control of finances and to ensure the
maintenance of adequate financial reserves to help weather a
recession. We believe the state will largely achieve these
goals over the long term.
The state has not yet passed retail electric deregulation
legislation. However, the state and power market
participants are actively studying alternative plans for
paying unfunded costs and transitioning into a deregulated
environment.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
57
<PAGE> 62
NATIONS SOUTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Prerefunded 4.9%
Transportation 3.7%
Water 18.4%
General obligation 20.9%
Other 1.5%
Hospital 23.1%
Electric 11.3%
Industrial development revenue/Pollution control revenue 9.1%
Housing 5.4%
Education 1.7%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 South Carolina, Jobs Economic
Development Authority, Hospital
Facilities Revenue, (South Carolina
Baptist Hospital Project) Series
1993, (AMBAC Insured), 5.465%
08/01/15 2.7%
-------------------------------------------------
2 South Carolina State, Capital
Improvement GO, Series 1996A, 3.500%
07/01/06 2.4%
-------------------------------------------------
3 Columbia, South Carolina, Waterworks
and Sewer Systems Revenue Refunding,
Series 1993, 5.500% 02/01/09 2.2%
-------------------------------------------------
4 South Carolina State, Housing Finance
and Development Authority,
Multi-Family Housing Revenue, (United
Dominion Realty Trust Project) Series
1994, AMT, Mandatory Put 05/01/04 @
100, 6.500% 05/01/24 2.2%
-------------------------------------------------
5 South Carolina, State Housing Finance
and Development Authority, Revenue
Refunding, Series 1992A, (FNMA/FHA
COLL), 6.800% 11/15/11 2.0%
-------------------------------------------------
6 Medical University of South Carolina,
Hospital Facilities, Revenue
Refunding, Series 1990A, 7.000%
07/01/02 2.0%
-------------------------------------------------
7 Lexington County, South Carolina,
Health Services District, Revenue
Refunding, Series 1997 (FSA Insured),
5.125% 11/01/21 1.9%
-------------------------------------------------
8 South Carolina State, Port Authority,
Revenue, Series 1998, AMT, (FSA
Insured), 5.250% 07/01/13 1.9%
-------------------------------------------------
9 South Carolina, Jobs Economic
Development Authority, Hospital
Facilities Revenue, (Palmetto Health
Alliance Project) Series 2000A,
7.125% 12/15/15 1.9%
-------------------------------------------------
10 Richland County, South Carolina,
School District Number 1, GO, Series
1996, (SCSDE), 4.625% 03/01/22 1.8%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
58
<PAGE> 63
NATIONS SOUTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(5/5/92 through
3/31/00) 5.24% 4.79%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
South Carolina Intermediate
Municipal Bond Fund from the
inception of the share class.
The Lehman 7-Year Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of investment grade
bonds with maturities of 7 to 8
years. It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS SOUTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND
$14,484 INDEX $15,923
-------------------------------- ----------------------------
<S> <C> <C>
May 5 1992 9675 10000
9882 10264
10097 10545
1992 10252 10718
10579 11061
10841 11368
11148 11697
1993 11262 11839
10865 11392
10931 11512
11005 11623
1994 10912 11511
11477 12116
11758 12461
12020 12816
1995 12378 13139
12277 13091
12328 13149
12577 13384
1996 12844 13712
12830 13697
13149 14074
13412 14450
1997 13693 14765
13812 14945
13986 15118
14342 15597
1998 14421 15696
14504 15829
14292 15560
14267 15688
1999 14231 15673
Mar. 31 2000 14484 15923
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS SOUTH CAROLINA
INTERMEDIATE MUNICIPAL BOND FUND LEHMAN 7-YEAR MUNICIPAL BOND
$14,970 INDEX $15,923
-------------------------------- ----------------------------
<S> <C> <C>
May 5 1992 10000 10000
10214 10264
10437 10545
1992 10596 10718
10934 11061
11206 11368
11523 11697
1993 11640 11839
11233 11392
11298 11512
11376 11623
1994 11278 11511
11862 12116
12153 12461
12424 12816
1995 12794 13139
12689 13091
12740 13149
13000 13384
1996 13275 13712
13261 13697
13591 14074
13863 14450
1997 14153 14765
14276 14945
14456 15118
14824 15597
1998 14906 15696
14991 15829
14772 15560
14746 15688
1999 14709 15673
Mar 31 2000 14970 15923
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP** NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 1/6/92 5/5/92 6/8/93 6/17/92
-------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.09% -0.14% -3.36% -0.82% -3.68% -0.91% -1.86%
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.35% 4.13% 3.00% 3.51% 3.21% 3.47% 3.47%
5 YEARS 4.98% 4.77% 4.07% 4.27% 4.27% 4.25% 4.25%
SINCE INCEPTION 5.39% 5.24% 4.79% 4.05% 4.05% 4.61% 4.61%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
59
<PAGE> 64
NATIONS SOUTH CAROLINA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS SOUTH CAROLINA MUNICIPAL BOND FUND'S PERFORMANCE FOR
THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR
THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of South Carolina municipal securities, we aim
exempt from federal and South to limit the Fund's exposure to any single credit or market
Carolina state income taxes with sector. In addition, we use a combination of investment
the potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund normally maintains an
For the 12-month period ended average dollar-weighted maturity of greater than seven years
March 31, 2000, Nations South and a duration of greater than six years.
Carolina Municipal Bond Fund PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Investor A Shares provided With a total return of -0.95%, Nations South Carolina
shareholders with a total return Municipal Bond Fund (Investor A Shares) significantly
of -0.95%.* outperformed its peer group, the Lipper South Carolina
Municipal Debt Funds Universe, which returned -2.02% for the
12-month period ended March 31, 2000. The Fund benefited
from its conservative duration position.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN SOUTH
CAROLINA?
Supporting education is an important challenge for the state
and its local government units. This would serve many
purposes, but from an economic standpoint, it would provide
trained workers for a low unemployment economy and serve as
an inducement to workers to relocate from other areas. A
well-educated and trained workforce also will aid in
diversifying the state's economy. Another challenge is to
maintain tight control of finances and to ensure the
maintenance of adequate financial reserves to help weather a
recession. We believe the state will largely achieve these
goals over the long term.
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return. The performance shown does not reflect
the maximum front-end sales charge of 4.75%, which
may apply to purchases of Investor A Shares. For
standardized performance, please refer to the
Performance table.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
South Carolina Municipal Debt Funds Universe limit
their assets to those securities that are exempt from
taxation in South Carolina.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
60
<PAGE> 65
NATIONS SOUTH CAROLINA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
The state has not yet passed retail electric deregulation
legislation. However, the state and power market
participants are actively studying alternative plans for
paying unfunded costs and transitioning into a deregulated
environment.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
61
<PAGE> 66
NATIONS SOUTH CAROLINA
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Industrial development revenue/Pollution control revenue 28.4%
Water 23.0%
Other 0.3%
Hospital 22.8%
Electric 9.6%
General obligation 6.0%
Transportation 4.7%
Prerefunded 2.7%
Education 2.5%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Columbia, South Carolina, Waterworks
and Sewer Systems Revenue, Series
1991, 5.010% 02/01/03 6.1%
-------------------------------------------------
2 Columbia, South Carolina, Waterworks
and Sewer Systems Revenue Refunding,
Series 1993, 5.500% 02/01/09 5.3%
-------------------------------------------------
3 South Carolina State, Public Service
Authority, Revenue, Series 1999A,
(MBIA Insured), 5.625% 01/01/13 5.3%
-------------------------------------------------
4 Spartanburg, South Carolina, Sanitary
Sewer District, Sewer System Revenue
Refunding, Series 1999B, (MBIA
Insured), 5.000% 03/01/26 5.1%
-------------------------------------------------
5 South Carolina State, Jobs Economic
Development Authority, Hospital
Facilities Revenue, Series 1999, (FSA
Insured), 5.300% 02/01/14 5.1%
-------------------------------------------------
6 Darlington County, South Carolina,
IDR, (Sonoco Products Company
Project)
Series 1995, AMT, 6.125% 06/01/25 5.0%
-------------------------------------------------
7 Georgetown County, South Carolina,
PCR Refunding, (International Paper
Company Project) Series 1999A, 5.125%
02/01/12 4.8%
-------------------------------------------------
8 Greenville, South Carolina, Hospital
Facilities Revenue, Series 1996B,
(GTY AGMT), 5.250% 05/01/23 4.7%
-------------------------------------------------
9 York County, South Carolina, Exempt
Facilities IDR, (Hoechst Celanese
Corporation Project) Series 1994,
AMT, 5.700% 01/01/24 4.6%
-------------------------------------------------
10 Darlington County, South Carolina,
IDR, (Nucor Corporation Project)
Series 1993A, AMT, 5.750% 08/01/23 4.3%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
62
<PAGE> 67
NATIONS SOUTH CAROLINA
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(11/8/93
through
3/31/00) 4.76% 3.97%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
South Carolina Municipal Bond
Fund from the inception of the
share class. The Lehman
Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of 8,000
investment grade, long-term
maturity bonds. It is
unavailable for investment. The
performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS SOUTH CAROLINA MUNICIPAL LEHMAN MUNICIPAL BOND INDEX
BOND FUND $12,821 $13,799
-------------------------------- ---------------------------
<S> <C> <C>
Nov. 8 1993 9525 10000
1993 9753 10121
9199 9565
9241 9671
9244 9737
1994 9144 9598
9863 10277
10109 10524
10390 10826
1995 10918 11273
10688 11138
10773 11223
11029 11480
1996 11274 11773
11234 11744
11598 12150
11897 12515
1997 12224 12854
12336 13002
12537 13200
12885 13605
1998 12867 13687
12943 13809
12680 13565
12569 13511
1999 12427 13406
Mar. 31 2000 12821 13799
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS SOUTH CAROLINA MUNICIPAL LEHMAN MUNICIPAL BOND INDEX
BOND FUND $13,459 $13,799
-------------------------------- ---------------------------
<S> <C> <C>
Nov. 8 1993 10000 10000
10239 10121
9657 9565
9702 9671
9705 9737
1994 9600 9598
10355 10277
10613 10524
10908 10826
1995 11463 11273
11221 11138
11310 11223
11579 11480
1996 11637 11773
11794 11744
12176 12150
12490 12515
1997 12834 12854
12951 13002
13162 13200
13528 13605
1998 13509 13687
13588 13809
13312 13565
13195 13511
1999 13046 13406
Mar. 31 2000 13459 13799
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 12/27/93 11/8/93 10/21/93 11/3/94
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.72% -0.95% -5.62% -1.65% -5.43% -1.71% -2.66%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.72% 4.50% 2.82% 3.82% 2.89% 3.84% 3.84%
5 YEARS 5.60% 5.39% 4.37% 4.74% 4.58% 4.81% 4.81%
SINCE INCEPTION 4.71% 4.76% 3.97% 3.91% 3.91% 6.45% 6.45%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
63
<PAGE> 68
NATIONS TENNESSEE
INTERMEDIATE MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS TENNESSEE INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
maintaining a well-diversified portfolio, generally within
INVESTMENT OBJECTIVE the universe of Tennessee municipal securities, we aim to
The Fund seeks high current income limit the Fund's exposure to any single credit or market
exempt from federal income tax and sector. In addition, we use a combination of investment
the Tennessee Hall Income Tax on strategies, including duration management (managing the
unearned income consistent with Fund's sensitivity to interest rates), market sector
moderate fluctuation of principal. selection and individual credit reviews. We also seek to
limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW an intermediate-term portfolio, the Fund maintains an
For the 12-month period ended average dollar-weighted maturity of between three and ten
March 31, 2000, Nations Tennessee years and a duration of between three and six years.
Intermediate Municipal Bond Fund
Investor A Shares provided PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
shareholders with a total return
of -0.90%.* With a total return of -0.90%, Nations Tennessee
Intermediate Municipal Bond Fund (Investor A Shares)
slightly underperformed its peer group, the Lipper Other
States Intermediate Municipal Debt Funds Universe, which
returned -0.72% for the 12-month period ended March 31,
2000. Two declining credit situations caused the Fund to
modestly underperform its peer group.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TENNESSEE?
The state of Tennessee has earned the highest possible
credit ratings from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). However, the state's rating is currently under some
pressure, in our opinion, due to its recent financial
performance. For example, its general fund experienced an
operating deficit in fiscal year 1999. A series of "one-
shots" (non-recurring revenues) were used to close the gap.
A deficit of about $340 million is projected for fiscal
2001. This shortfall is due to a series of program
enhancements such as TennCare (state Medicaid equivalent)
and education and
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt issues with
dollar-weighted average maturities of five to ten
years and are exempt from taxation on a specified
city or state basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
64
<PAGE> 69
NATIONS TENNESSEE
INTERMEDIATE MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
salary increases for state employees. The fiscal 2000 budget
was also balanced with a series of "one-shots" for about
$120 million. These were used to close an estimated
operating deficit of about $400 million. The state
legislature is currently considering alternatives such as
tax reform, a flat tax on personal incomes as well as
spending cuts to restore the state to a long-term balanced
budget. The governor has also established a committee to
examine TennCare. This committee is expected to report in
early 2001.
The state economy remains fundamentally strong with low
unemployment and stable and diversified growth. The
fundamental strength in the economy is, in our opinion, an
important credit strength. We believe, notwithstanding the
concerns noted above, that the state will remain a high
quality credit in the long term.
WHAT IS YOUR OUTLOOK FOR TENNESSEE AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
In the short term, Tennessee must re-establish revenue and
spending levels that will produce a balanced budget. In the
long run, the state must maintain these fiscal practices and
continue to experience stable diversified economic growth.
In our opinion, the state should be able to meet these
challenges.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
65
<PAGE> 70
NATIONS TENNESSEE
INTERMEDIATE MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Resource recovery 2.2%
Water 5.8%
Cash 3.6%
Industrial development devenue/Pollution control revenue 13.2%
Housing 16.7%
Other 0.9%
General obligation 24.3%
Hospital 23.8%
Electric 6.6%
Education 2.9%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Maury County, Tennessee, Industrial
Development Board, Multi-Modal PCR
Refunding, (General Motors
Corporation - Saturn Corporation
Project) Series 1994, 6.500% 09/01/24 4.8%
-------------------------------------------------
2 McMinn County, Tennessee, Industrial
Development Board, PCR Refunding,
(Bowater Inc. Project) Series 1991,
6.850% 04/01/01 3.9%
-------------------------------------------------
3 Shelby County, Tennessee, Health
Educational and Housing Facilities
Board, Revenue, (St. Jude's Childrens
Research Project) Series 1999, 5.380%
07/01/24 3.9%
-------------------------------------------------
4 Knox County, Tennessee, Health
Educational and Housing Facilities
Board, Revenue, (University Health
Systems Inc. Project) Series 1999,
5.750% 04/01/19 3.8%
-------------------------------------------------
5 Chattanooga-Hamilton County,
Tennessee, Hospital Authority,
Revenue Refunding, (Erlanger Medical
Center Project) Series 1993, (FSA
Insured), 5.380% 10/01/04 3.6%
-------------------------------------------------
6 Metropolitan Government, Nashville
and Davidson County, Tennessee,
Electric Revenue, Series 1998B,
5.500% 05/15/13 3.5%
-------------------------------------------------
7 Knox County, Tennessee, Health
Educational and Housing Facilities
Board, Hospital Facilities
Improvement Revenue Refunding,
(Baptist Health System of East
Tennessee, Inc. Project) Series 1996,
(CONNIE LEE Insured), 5.500% 04/15/11 3.4%
-------------------------------------------------
8 Tennessee Housing Development Agency,
Homeownership Revenue, Series
1997-3A, AMT, 5.940% 01/01/08 3.4%
-------------------------------------------------
9 Memphis, Tennessee, Water Division,
Revenue Refunding, Series 1992,
5.900% 01/01/04 3.3%
-------------------------------------------------
10 Tennergy Corporation, Tennessee, Gas
Revenue, Series 1999, (MBIA Insured),
5.000% 06/01/07 3.1%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
66
<PAGE> 71
NATIONS TENNESSEE
INTERMEDIATE MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(4/2/93 through
3/31/00) 4.35% 3.85%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Tennessee Intermediate Municipal
Bond Fund from the inception of
the share class. The Lehman
7-Year Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of
investment grade bonds with
maturities of 7 to 8 years. It
is unavailable for investment.
The performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS TENNESSEE INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $13,029 INDEX $14,395
------------------------------ ----------------------------
<S> <C> <C>
Apr. 2 1993 9675 10000
9900 10277
10205 10575
1993 10326 10703
9889 10299
9956 10408
9998 10508
1994 9846 10407
10413 10954
10657 11265
10892 11586
1995 11218 11878
11141 11835
11194 11888
11386 12100
1996 11636 12397
11623 12383
11914 12724
12172 13063
1997 12416 13348
12526 13511
12663 13668
12997 14101
1998 13061 14190
13147 14310
12945 14067
12919 14183
1999 12870 14170
Mar. 31 2000 13029 14395
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS TENNESSEE INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $13,467 INDEX $14,395
------------------------------ ----------------------------
<S> <C> <C>
Apr. 2 1993 10000 10000
10233 10277
10548 10575
1993 10673 10703
10221 10299
10291 10408
10334 10508
1994 10177 10407
10763 10954
11015 11265
11258 11586
1995 11595 11878
11515 11835
11570 11888
11768 12100
1996 12027 12397
12014 12383
12314 12724
12581 13063
1997 12833 13348
12947 13511
13088 13668
13434 14101
1998 13600 14190
13589 14310
13380 14067
13353 14183
1999 13302 14170
Mar. 31 2000 13467 14395
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 4/1/93 4/2/93 6/10/93 11/3/94
-------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.67% -0.90% -4.11% -1.58% -4.42% -1.96% -2.91%
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.10% 3.88% 2.74% 3.27% 2.96% 3.13% 3.13%
5 YEARS 4.80% 4.58% 3.90% 4.09% 4.09% 4.02% 4.02%
SINCE INCEPTION 4.47% 4.35% 3.85% 3.84% 3.84% 4.99% 4.99%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
67
<PAGE> 72
NATIONS TENNESSEE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS TENNESSEE MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Tennessee municipal securities, we aim to
exempt from federal income tax and limit the Fund's exposure to any single credit or market
the Tennessee Hall Income Tax on sector. In addition, we use a combination of investment
unearned income with the potential strategies, including duration management (managing the
for principal fluctuation Fund's sensitivity to interest rates), market sector
associated with investments in selection and individual credit reviews. We also seek to
long-term municipal securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund normally maintains an
For the 12-month period ended average dollar-weighted maturity of greater than seven years
March 31, 2000, Nations Tennessee and a duration of greater than six years.
Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Shares provided shareholders with With a total return of -1.59%, Nations Tennessee Municipal
a total return of -1.59%.* Bond Fund (Investor A Shares) outperformed its peer group,
the Lipper Tennessee Municipal Debt Funds Universe, which
returned -2.02% for the 12-month period ended March 31,
2000. The Fund benefited from a slightly shorter duration
than its peer group, which helped to protect principal in a
rising interest-rate environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TENNESSEE?
The state of Tennessee has earned the highest possible
credit ratings from Moody's Investors Services, Inc.
("Aaa"), Standard & Poor's Corporation ("AAA"), and Fitch
IBCA, Inc. ("AAA"). However, the state's rating is currently
under some pressure, in our opinion, due to its recent
financial performance. The general fund experienced an
operating deficit in fiscal year 1999. A series of
"one-shots" (non-recurring revenues) were used to close the
gap. A deficit of about $340 million is projected for fiscal
2001. This shortfall is due to a series of program
enhancements
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Tennessee Municipal Debt Funds Universe limit their
assets to those securities that are exempt from
taxation in Tennessee.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
68
<PAGE> 73
NATIONS TENNESSEE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
such as TennCare (state Medicaid equivalent) and education
and salary increases for state employees. The fiscal 2000
budget was also balanced with a series of "one-shots" for
about $120 million. These were used to close an estimated
operating deficit of about $400 million. The state
legislature is currently considering alternatives such as
tax reform, a flat tax on personal incomes as well as
spending cuts to restore the state to a long-term balanced
budget. The governor has also established a committee to
examine TennCare. This committee is expected to report in
early 2001.
The state economy remains fundamentally strong with low
unemployment and stable and diversified growth. The
fundamental strength in the economy is, in our opinion, an
important credit strength. We believe, notwithstanding the
concerns noted above, that the state will remain a high
quality credit in the long term.
WHAT IS YOUR OUTLOOK FOR TENNESSEE AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
In the short term, Tennessee must re-establish revenue and
spending levels that will produce a balanced budget. In the
long run, the state must maintain these fiscal practices and
continue to experience stable diversified economic growth.
In our opinion, the state should be able to meet these
challenges.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
</TABLE>
69
<PAGE> 74
NATIONS TENNESSEE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
70
<PAGE> 75
NATIONS TENNESSEE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Cash 1.9%
Prerefunded 2.6%
Water 2.8%
Electric 6.1%
Education 8.0%
Housing 8.3%
Hospital 16.2%
General obligation 22.8%
Other 6.8%
Industrial development revenue/Pollution control revenue 24.5%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Hamilton County, Tennessee,
Refunding, GO, Series 1998B, 5.100%
08/01/24 6.4%
-------------------------------------------------
2 Memphis-Shelby County, Tennessee,
Airport Authority, Special Facilities
and Project Revenue Refunding,
(Federal Express Corporation Project)
Series 1997, 5.350% 09/01/12 6.2%
-------------------------------------------------
3 Humphreys County, Tennessee,
Industrial Development Board, Solid
Waste Disposal, (E. I. duPont de
Nemours and Company Project) Series
1994, AMT, 6.700% 05/01/24 5.7%
-------------------------------------------------
4 Metropolitan Government, Nashville
and Davidson County, Tennessee,
Health and Educational Facilities
Board, Improvement Revenue Refunding,
(Meharry Medical College Project)
Series 1996, (AMBAC Insured), 6.000%
12/01/16 5.0%
-------------------------------------------------
5 Maury County, Tennessee, Industrial
Development Board, Multi-Modal PCR
Refunding, (General Motors
Corporation - Saturn Corporation
Project) Series 1994, 6.500% 09/01/24 4.7%
-------------------------------------------------
6 Blount County, Tennessee, Public
Building Authority, Public Facility
Revenue, Series 1998, (FGIC Insured),
5.000% 04/01/19 4.3%
-------------------------------------------------
7 Knox County, Tennessee, Health
Educational and Housing Facilities
Board, Revenue, (University Health
Systems Inc. Project) Series 1999,
5.750% 04/01/19 4.2%
-------------------------------------------------
8 Rutherford County, Tennessee, Public
Improvement GO, Series 1996,
6.000% 04/01/06 4.0%
-------------------------------------------------
9 Metropolitan Government, Nashville
and Davidson County, Tennessee,
Electric Revenue, Series 1998B,
5.500% 05/15/13 3.9%
-------------------------------------------------
10 Metropolitan Government, Nashville
and Davidson County, Tennessee,
Multi-Family Housing Revenue,
(Enchantment, Inc. - Welch Bend
Apartments Project)
Series 1996A, (FNMA COLL), Mandatory
Put 01/01/07 @ 100, 5.500% 01/01/27 3.8%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
71
<PAGE> 76
NATIONS TENNESSEE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(11/2/93
through
3/31/00) 4.60% 3.81%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Tennessee Municipal Bond Fund
from the inception of the share
class. The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of 8,000 investment
grade, long-term maturity bonds.
It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS TENNESSEE MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $12,710 $13,799
-------------------------------- ---------------------------
<S> <C> <C>
Nov. 2 1993 9525 10000
1993 9692 10121
9071 9565
9133 9671
9156 9737
1994 9045 9598
9762 10277
9976 10524
10246 10826
1995 10782 11273
10592 11138
10650 11223
10889 11480
1996 11165 11773
11123 11744
11496 12150
11849 12515
1997 12175 12854
12262 13002
12434 13200
12819 13605
1998 12849 13687
12915 13809
12640 13565
12505 13511
1999 12367 13406
Mar. 31 2000 12710 13799
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS TENNESSEE MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $13,343 $13,799
-------------------------------- ---------------------------
<S> <C> <C>
Nov. 2 1993 10000 10000
1993 10175 10121
9524 9565
9589 9671
9613 9737
1994 9496 9598
10249 10277
10474 10524
10757 10826
1995 11320 11273
11120 11138
11181 11223
11433 11480
1996 11722 11773
11677 11744
12070 12150
12440 12515
1997 12782 12854
12373 13002
13054 13200
13458 13605
1998 13490 13687
13559 13809
13270 13565
13128 13511
1999 12984 13406
Mar. 31 2000 13343 13799
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 3/2/94 11/2/93 10/21/93 11/3/94
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -1.36% -1.59% -6.24% -2.28% -6.04% -2.35% -3.29%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.76% 4.54% 2.87% 3.86% 2.93% 3.86% 3.86%
5 YEARS 5.63% 5.42% 4.39% 4.77% 4.61% 4.84% 4.84%
SINCE INCEPTION 5.29% 4.60% 3.81% 3.77% 3.77% 6.52% 6.52%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers and expense
reimbursements by the investment adviser and the co-administrator, which have
the effect of increasing total return.
72
<PAGE> 77
NATIONS TEXAS INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS TEXAS INTERMEDIATE MUNICIPAL BOND FUND'S PERFORMANCE
FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK
FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Texas municipal securities, we aim to limit
exempt from federal income tax the Fund's exposure to any single credit or market sector.
consistent with moderate In addition, we use a combination of investment strategies,
fluctuation of principal. including duration management (managing the Fund's
PERFORMANCE REVIEW sensitivity to interest rates), market sector selection and
For the 12-month ended March 31, individual credit reviews. We also seek to limit the
2000, Nations Texas Intermediate distribution of capital gains when appropriate. As an
Municipal Bond Fund Investor A intermediate-term portfolio, the Fund maintains an average
Shares provided shareholders with dollar-weighted maturity of between three and ten years and
a total return of -0.06%.* a duration of between three and six years.
PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
With a total return of -0.06%, Nations Texas Intermediate
Municipal Bond Fund (Investor A Shares) outperformed its
peer group, the Lipper Other States Intermediate Municipal
Debt Funds Universe, which returned -0.72%, for the 12-month
period ended March 31, 2000. The Fund benefited from a
shorter duration than its peer group, which helped protect
principal in a rising interest rate environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TEXAS?
The state of Texas is currently rated "Aa1" by Moody's
Investors Service, Inc., "AA" by Standard & Poor's
Corporation, and "AA+" by Fitch IBCA, Inc. The Moody's
rating was upgraded from "Aa2" in June of 1999. These
ratings reflect the benefits of a diverse economy showing
long-term growth, excellent financial performance and a
manageable debt burden. Over the last 10 to 15 years, the
Texas economy has achieved a significant level of
diversification away from the oil/gas sector, which caused
so much difficulty in the mid-80s. This new level of
diversification is shown in the growth of the Maquiladora
program in the Rio Grande River Valley, in the high
technology sector and in medical and other services.
Careful financial management has allowed the state to
produce significant cash surpluses over the last several
years. The state closed fiscal year 1998 with a general fund
cash balance of $3.3 billion and closed fiscal year 1999
with a general
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 3.25%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt issues with
dollar-weighted average maturities of five to ten
years and are exempt from taxation on a specified
city or state basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
73
<PAGE> 78
NATIONS TEXAS INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
fund cash balance of $4.3 billion. Other measures of
financial health have improved, including the Economic
Stabilization Fund, which ended fiscal year 1998 with $58
million and ended fiscal year 1999 with $80 million.
WHAT IS YOUR OUTLOOK FOR TEXAS AND THE MUNICIPAL BOND MARKET
FOR THE COMING YEAR?
Texas and its local government units must provide equitable
funding for their growing education needs, as well as needs
for water and sewer infrastructure, particularly in the face
of growing federal regulation and other capital and
infrastructure needs. These collective issues will have to
be addressed without harming overall finances. However, we
are encouraged by the state's track record and believe it
should accomplish most of these goals. The state of Texas
per capita debt level is only $566.
A positive step was the passage in June 1999 of
comprehensive legislation dealing with the deregulation of
retail electricity. This legislation lays out a long-term
plan for paying the unfunded costs associated with
deregulation.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
74
<PAGE> 79
NATIONS TEXAS INTERMEDIATE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
General obligation 39.7%
Other 3.1%
Prerefunded 12.4%
Water 9.7%
Electric 8.5%
Hospital 8.5%
Industrial development revenue/Pollution control revenue 8.3%
Cash 3.6%
Transportation 3.4%
Housing 2.8%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Texas, Municipal Power Agency,
Revenue Refunding, Series 1993, (MBIA
Insured), 5.250% 09/01/05 4.5%
-------------------------------------------------
2 Houston, Texas, Water & Sewer Systems
Revenue, Junior Lien, Series 1996A,
(FGIC Insured), 5.250% 12/01/25 2.7%
-------------------------------------------------
3 Texas State, Department of Housing
and Community Affairs, Single-Family
Revenue, Series 1997A-1, AMT,
(GNMA/FNMA COLL) (MBIA Insured),
5.250% 09/01/13 2.5%
-------------------------------------------------
4 Red River Authority of Texas, PCR,
(Hoechst Celanese Corporation
Project) Series 1992, AMT, 6.880%
04/01/17 2.4%
-------------------------------------------------
5 Texas State, College Student Loan
Authority, GO, Series 1997, (GTD STD
LNS), 5.250% 08/01/07 2.1%
-------------------------------------------------
6 North Central, Texas, Health
Facilities Development Corporation,
Revenue Refunding, (Baylor Health
Care Systems Project) Series 1995,
5.500% 05/15/13 2.1%
-------------------------------------------------
7 Harris County, Texas, Toll Road
Revenue Refunding, Senior Lien,
Series 1994, (FGIC Insured), 5.000%
08/15/16 2.0%
-------------------------------------------------
8 Houston, Texas, Water and Sewer
Systems Revenue, Unrefunded Balance,
Prior Lien, Series 1992B, 5.900%
12/01/03 1.9%
-------------------------------------------------
9 Texas, Municipal Power Agency,
Revenue Refunding, Series 1992, (MBIA
Insured), Prerefunded 09/01/02 @ 102,
5.900% 09/01/04 1.9%
-------------------------------------------------
10 Austin, Texas, GO Refunding, Series
1993, 5.500% 09/01/04 1.8%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
75
<PAGE> 80
NATIONS TEXAS INTERMEDIATE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(2/4/93 through
3/31/00) 4.40% 3.92%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Texas Intermediate Municipal
Bond Fund from the inception of
the share class. The Lehman
7-Year Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of
investment grade bonds with
maturities of 7 to 8 years. It
is unavailable for investment.
The performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS TEXAS INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $13,158 INDEX $14,643
--------------------------- ----------------------------
<S> <C> <C>
Feb. 4 1993 9675 10000
9770 10172
9996 10454
10269 10757
1993 10365 10887
9948 10477
10053 10587
10119 10688
1994 10001 10586
10489 11142
10701 11459
10946 11786
1995 11271 12082
11184 12039
11216 12092
11431 12308
1996 11658 12610
11650 12596
11942 12942
12228 13288
1997 12464 13578
12567 13743
12698 13903
13037 14344
1998 13111 14434
13166 14557
12958 14309
12967 14426
1999 12927 14413
Mar. 31 2000 13158 14643
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS TEXAS INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $13,600 INDEX $14,643
--------------------------- ----------------------------
<S> <C> <C>
Feb. 4 1993 10000 10000
10098 10172
10332 10454
10614 10757
1993 10713 10887
10282 10477
10390 10587
10458 10688
1994 10337 10586
10341 11142
11080 11459
11313 11786
1995 11649 12082
11580 12039
11593 12092
11815 12308
1996 12060 12610
12041 12596
12343 12942
12638 13288
1997 12882 13578
12989 13743
13124 13903
13475 14344
1998 13552 14434
13608 14557
13393 14309
13402 14426
1999 13361 14413
Mar. 31 2000 13600 14643
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 1/12/93 2/4/93 6/22/93 11/3/94
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.17% -0.06% -3.29% -0.74% -3.60% -0.86% -1.81%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.36% 4.14% 3.01% 3.53% 3.22% 3.48% 3.48%
5 YEARS 4.86% 4.64% 3.94% 4.15% 4.15% 4.12% 4.12%
SINCE INCEPTION 4.82% 4.40% 3.92% 3.77% 3.77% 5.02% 5.02%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
76
<PAGE> 81
NATIONS TEXAS MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS TEXAS MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Texas municipal securities, we aim to limit
exempt from federal income tax the Fund's exposure to any single credit or market sector.
with the potential for principal In addition, we use a combination of investment strategies,
fluctuation associated with including duration management (managing the Fund's
investments in long-term municipal sensitivity to interest rates), market sector selection and
securities. individual credit reviews. We also seek to limit the
PERFORMANCE REVIEW distribution of capital gains when appropriate. As a
For the 12-month period ended long-term portfolio, the Fund normally maintains an average
March 31, 2000, Nations Texas dollar-weighted maturity of greater than seven years and a
Municipal Bond Fund Investor A duration of greater than six years.
Shares provided shareholders with PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
a total return of -0.86%.* With a total return of -0.86%, Nations Texas Municipal Bond
Fund (Investor A Shares) dramatically outperformed its peer
group, the Lipper Texas Municipal Debt Funds Universe, which
returned -3.08% for the 12-month period ended March 31,
2000. The Fund benefited from a shorter duration than its
peer group, which helped protect principal in a rising
interest rate environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN TEXAS?
The state of Texas is currently rated "Aa1" by Moody's
Investors Service, Inc., "AA" by Standard & Poor's
Corporation, and "AA+" by Fitch IBCA, Inc. The Moody's
rating was upgraded from "Aa2" in June of 1999. These
ratings reflect the benefits of a diverse economy showing
long-term growth, excellent financial performance and a
manageable debt burden. Over the last 10 to 15 years, the
Texas economy has achieved a significant level of
diversification away from the oil/gas sector, which caused
so much difficulty in the mid-80s. This new level of
diversification is shown in the growth of the Maquiladora
program in the Rio Grande River Valley, in the high
technology sector and in medical and other services.
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Texas Municipal Debt Funds Universe limit their
assets to those securities that are exempt from
taxation in Texas.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
77
<PAGE> 82
NATIONS TEXAS MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
Careful financial management has allowed the state to
produce significant cash surpluses over the last several
years. The state closed fiscal year 1998 with a general fund
cash balance of $3.3 billion and closed fiscal year 1999
with a general fund cash balance of $4.3 billion. Other
measures of financial health have improved, including the
Economic Stabilization Fund, which ended fiscal year 1998
with $58 million and ended fiscal year 1999 with $80
million.
WHAT IS YOUR OUTLOOK FOR TEXAS AND THE MUNICIPAL BOND MARKET
FOR THE COMING YEAR?
Texas and its local government units must provide equitable
funding for their growing education needs, as well as needs
for water and sewer infrastructure, particularly in the face
of growing federal regulation and other capital and
infrastructure needs. These collective issues will have to
be addressed without harming overall finances. However, we
are encouraged by the state's track record and believe it
should accomplish most of these goals. The state of Texas
per capita debt level is only $566.
A positive step was the passage in June 1999 of
comprehensive legislation dealing with the deregulation of
retail electricity. This legislation lays out a long-term
plan for paying the unfunded costs associated with
deregulation.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
78
<PAGE> 83
NATIONS TEXAS MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Cash 2.1%
General obligation 38.4%
Prerefunded 22.6%
Industrial development revenue/Pollution control revenue 17.6%
Hospital 7.1%
Education 5.9%
Transportation 3.6%
Water 2.7%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Tarrant County, Texas, Health
Facilities Development Corporation,
Health Systems Revenue, (Harris
Methodist Health Systems Project)
Series 1994, (MBIA-IBC Insured),
6.000% 09/01/10 7.7%
-------------------------------------------------
2 Lucas County, Ohio, Hospital Revenue,
(Flower Hospital Project) Series
1993, Prerefunded 12/01/04 @ 101,
6.130% 12/01/13 7.6%
-------------------------------------------------
3 Red River Authority of Texas, PCR,
(Hoechst Celanese Corporation
Project) Series 1992, AMT, 6.880%
04/01/17 7.3%
-------------------------------------------------
4 Sherman, Texas, Independent School
District, GO, Series 1995, (PSFG
Insured), Prerefunded 02/15/05 @ 100,
6.500% 02/15/20 4.5%
-------------------------------------------------
5 Round Rock, Texas, Independent School
District, GO, Series 2000, (PSFG
Insured) 5.000% 08/01/18 4.0%
-------------------------------------------------
6 Northside, Texas, Independent School
District, GO, Series 1999, 4.750%
08/15/18 3.8%
-------------------------------------------------
7 Harris County, Texas, Health
Facilities Development Authority,
Revenue, (Memorial Hospital Systems
Project) Series 1997A, (MBIA
Insured), 6.000% 06/01/10 3.8%
-------------------------------------------------
8 Gulf Coast, Texas, Waste Disposal
Authority, Revenue Refunding,
(Houston Light and Power Company
Project) Series 1992A, (MBIA
Insured), 6.380% 04/01/12 3.8%
-------------------------------------------------
9 Dallas-Forth Worth, Texas, Regional
Airport Revenue Refunding, Series
1994A, (MBIA Insured), 6.000%
11/01/09 3.8%
-------------------------------------------------
10 Trinity River Authority, Texas, PCR,
(Texas Instruments Inc. Project)
Series 1996, AMT, 6.200% 03/01/20 3.6%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
79
<PAGE> 84
NATIONS TEXAS MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(12/17/93
through
3/31/00) 4.35% 3.55%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Texas Municipal Bond Fund from
the inception of the share
class. The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of 8,000 investment
grade, long-term maturity bonds.
It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS TEXAS MUNICIPAL BOND FUND LEHMAN MUNICIPAL BOND INDEX
$12,446 $13,528
--------------------------------- ---------------------------
<S> <C> <C>
Dec. 17 1993 9525 10000
1993 9551 10221
8857 9650
8907 9757
8895 9824
1994 8745 9683
9442 10368
9681 10618
9942 10923
1995 10458 11374
10268 11237
10371 11323
10572 11582
1996 10834 11877
10759 11849
11106 12258
11468 12627
1997 11789 12969
11931 13118
12077 13317
12442 13726
1998 12518 13808
12553 13931
12294 13299
12211 13246
1999 12078 13143
Mar. 31 2000 12446 13528
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS TEXAS MUNICIPAL BOND FUND LEHMAN MUNICIPAL BOND INDEX
$13,067 $13,528
--------------------------------- ---------------------------
<S> <C> <C>
Dec. 17 1993 10000 10000
1993 10027 10221
9299 9650
9351 9757
9339 9824
1994 9181 9683
9913 10368
10184 10618
10438 10923
1995 10980 11374
10780 11237
10888 11323
11099 11582
1996 11374 11877
11296 11849
11660 12258
12040 12627
1997 12377 12969
12526 13118
12679 13317
13062 13726
1998 13142 13808
13179 13931
12908 13299
12820 13246
1999 12680 13143
Mar. 31 2000 13067 13528
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 2/3/94 12/17/93 10/21/93 11/3/94
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.63% -0.86% -5.53% -1.56% -5.34% -1.62% -2.57%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.19% 4.97% 3.29% 4.29% 3.36% 4.29% 4.29%
5 YEARS 5.90% 5.68% 4.65% 5.03% 4.87% 5.09% 5.09%
SINCE INCEPTION 4.39% 4.35% 3.55% 3.60% 3.60% 6.69% 6.69%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
80
<PAGE> 85
NATIONS VIRGINIA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND'S
PERFORMANCE FOR THE 12-MONTH PERIOD ENDED MARCH 31, 2000 AND
ITS OUTLOOK FOR THE FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management
Team of Banc of America Capital The Fund balances its investments between high quality,
Management, Inc., investment investment grade issues through which it seeks to reduce
sub-adviser to the Fund. credit and liquidity risk, and lower quality, investment
grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Virginia municipal securities, we aim to
exempt from federal and Virginia limit the Fund's exposure to any single credit or market
state income taxes consistent with sector. In addition, we use a combination of investment
moderate fluctuation of principal. strategies, including duration management (managing the
Fund's sensitivity to interest rates), market sector
PERFORMANCE REVIEW selection and individual credit reviews. We also seek to
For the 12-month period ended limit the distribution of capital gains when appropriate. As
March 31, 2000, Nations Virginia an intermediate-term portfolio, the Fund maintains an
Intermediate Municipal Bond Fund average dollar-weighted maturity of between three and ten
Investor A Shares provided years and a duration of between three and six years.
shareholders with a total return
of 0.06%.* PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
With a total return of 0.06%, Nations Virginia Intermediate
Municipal Bond Fund (Investor A Shares) outperformed its
peer group, the Lipper Virginia Intermediate Municipal Debt
Funds Universe, which returned -0.67%, for the 12-month
period ended March 31, 2000. The Fund benefited from a
shorter duration than its peer group, which helped protect
principal in a rising interest rate environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN VIRGINIA?
The Commonwealth of Virginia has earned the highest possible
credit ratings from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). These strong ratings reflect the Commonwealth's
very sound financial management, a diverse and growing
economy, relatively high wealth and income levels and a
manageable debt burden. Virginia also has made significant
progress in providing for its infrastructure spending needs
caused by its high growth.
</TABLE>
*The performance shown includes the effect of fee
waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return. The performance shown does not reflect
the maximum front-end sales charge of 3.25%, which
may apply to purchases of Investor A Shares. For
standardized performance, please refer to the
Performance table.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Other States Intermediate Municipal Debt Funds
Universe invest in municipal debt issues with
dollar-weighted average maturities of five to ten
years and are exempt from taxation on a specified
city or state basis.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
81
<PAGE> 86
NATIONS VIRGINIA INTERMEDIATE
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
An example of the Commonwealth's sound fiscal management is
its unreserved general fund balance, which stood at $561.8
million in fiscal 1998, or 7.6% of expenditures. Fiscal 1999
results are expected to improve this already strong level.
At June 30, 1999, Virginia's revenue stabilization fund and
reserve was at $555 million. These funds provide the
Commonwealth with a cushion against unforeseen problems.
WHAT IS YOUR OUTLOOK FOR VIRGINIA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
The Commonwealth and its local governments must continue to
meet their long-term challenges, which include maintaining
diverse economic growth and expanding infrastructure for
schools, roads, water and sewer. At the same time, they must
continue to preserve sound finances. Importantly, the
Commonwealth has implemented a long-term plan to deal with
retail electric deregulation and associated unfunded costs.
The legislature approved a deregulation bill in April of
1998 with further guidelines specified by the legislature in
March of 1999. We believe the Commonwealth and its local
government units will achieve a significant measure of
success in meeting these long-term challenges.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
82
<PAGE> 87
NATIONS VIRGINIA INTERMEDIATE
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Industrial development revenue / Pollution control revenue 5.2%
Hospital 5.2%
Transportation 11.7%
Water 13.7%
Prerefunded 12.5%
Other 7.4%
General obligation 26.6%
Resource recovery 9.1%
Education 4.3%
Housing 4.3%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Fairfax County, Virginia, Economic
Development Authority, Resource
Recovery, Revenue Refunding, Series
1998A, AMT, (AMBAC Insured), 5.950%
02/01/07 4.6%
-------------------------------------------------
2 Chesapeake, Virginia, GO Refunding,
Series 1993, 5.130% 12/01/05 2.2%
-------------------------------------------------
3 Loudoun County, Virginia, Industrial
Development Authority, Revenue, (Air
Force Retired Officers - Falcons
Landing Project) Series 1994A,
Prerefunded 11/01/04 @ 103, 8.750%
11/01/24 2.1%
-------------------------------------------------
4 Virginia State, Transportation Board
Authority, Transportation Revenue
Refunding, (U.S. Route 58 Corridor
Program) Series 1993A, 5.500%
05/15/09 1.9%
-------------------------------------------------
5 Newport News, Virginia, Public
Improvement GO Refunding, Series
1993B, (State Aid Withholding),
5.200% 11/01/04 1.8%
-------------------------------------------------
6 Virginia, Southeastern Public Service
Authority, Revenue Refunding, Series
1993A, (MBIA Insured), 5.100%
07/01/08 1.8%
-------------------------------------------------
7 Virginia State, Transportation Board
Authority, Transportation Contract
Revenue, (Northern Virginia
Transportation District Project)
Series 1996A, 5.130% 05/15/21 1.7%
-------------------------------------------------
8 Goochland County, Virginia,
Industrial Development Authority,
(Old Dominion Electric Cooperative
Project) Series 1998, AMT, 4.250%
12/01/02 1.7%
-------------------------------------------------
9 Hanover County, Virginia, Industrial
Development Authority, Revenue,
(Memorial Regional Medical Center
Project) Series 1995, (MBIA Insured),
5.500% 08/15/25 1.7%
-------------------------------------------------
10 North Slope Borough, Alaska, Capital
Appreciation GO, Series 1998A, (MBIA
Insured), 5.460% 06/30/09 1.4%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
83
<PAGE> 88
NATIONS VIRGINIA INTERMEDIATE
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
10-YEAR NAV** MOP*
<S> <C> <C>
(3/31/90
through
3/31/00) 5.64% 5.28%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Virginia Intermediate Municipal
Bond Fund over the last 10
years. The Lehman 7-Year
Municipal Bond Index is a
broad-based, unmanaged, total
return index composed of
investment grade bonds with
maturities of 7 to 8 years. It
is unavailable for investment.
The Lehman 7-Year Municipal Bond
Index measures the performance
of the municipal bonds
comprising the index for the
period beginning on 12/31/89.
Please note, however, that
Investor A Shares commenced
operations on 12/5/89.
Therefore, the performance
illustrated by the Lehman 7-Year
Municipal Bond Index includes
the performance of the Lehman
10-Year Municipal Bond Index for
the period preceding 12/31/89.
The performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS
VIRGINIA INTERMEDIATE MUNICIPAL BOND LEHMAN 7-YEAR MUNICIPAL BOND
FUND $16,311 INDEX $19,165
------------------------------------ ----------------------------
<S> <C> <C>
Mar. 31|1990 9425 10000
9584 10229
9663 10300
1990 10017 10694
10216 10949
10362 11137
10648 11560
1991 10984 11942
10972 11932
11319 12354
11567 12693
1992 11738 12901
12068 13314
12429 13683
12778 14080
1993 12902 14250
12373 13713
12456 13857
12478 13990
1994 12326 13855
12966 14584
13306 14998
13588 15426
1995 13949 15815
13872 15758
13928 15827
14142 16110
1996 14453 16505
14387 16487
14773 16940
15095 17392
1997 15410 17772
15524 17988
15712 18197
16131 18774
1998 16219 18892
16301 19053
16044 18729
16055 18882
1999 16021 18865
Mar. 31|2000 16311 19165
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS VIRGINIA INTERMEDIATE LEHMAN 7-YEAR MUNICIPAL BOND
MUNICIPAL BOND FUND $17,306 INDEX $19,165
----------------------------- ----------------------------
<S> <C> <C>
Mar. 31 1990 10000 10000
10169 10229
10252 10300
1990 10628 10694
10839 10949
10994 11137
11298 11560
1991 11655 11942
11642 11932
12010 12354
12273 12693
1992 12454 12901
12804 13314
13187 13683
13558 14080
1993 13689 14250
13128 13713
13216 13857
13240 13990
1994 13078 13855
13757 14584
14117 14998
14417 15426
1995 14800 15815
14719 15758
14778 15827
15005 16110
1996 15335 16505
15265 16487
15674 16940
16015 17392
1997 16350 17772
16471 17988
16670 18197
17116 18774
1998 17208 18892
17296 19053
17022 18729
17034 18882
1999 16999 18865
Mar. 31 2000 17306 19165
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date 9/20/89 12/5/89 6/7/93 6/17/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 0.29% 0.06% -3.20% -0.63% -3.50% -0.71% -1.66%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 4.49% 4.27% 3.12% 3.65% 3.35% 3.62% 3.62%
5 YEARS 4.91% 4.70% 4.01% 4.20% 4.20% 4.18% 4.18%
10 YEARS 5.64% 5.28%
SINCE INCEPTION 5.79% 5.61% 5.27% 3.84% 3.84% 4.37% 4.37%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 3.25%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
84
<PAGE> 89
NATIONS VIRGINIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY
<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE TEAM SHARES ITS VIEWS ON
NATIONS VIRGINIA MUNICIPAL BOND FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.
PORTFOLIO MANAGEMENT BRIEFLY DESCRIBE YOUR OVERALL INVESTMENT PHILOSOPHY AND THE
The Fund is managed by the INVESTMENT APPROACH OF THE FUND.
Municipal Fixed Income Management The Fund balances its investments between high quality,
Team of Banc of America Capital investment grade issues through which it seeks to reduce
Management, Inc., investment credit and liquidity risk, and lower quality, investment
sub-adviser to the Fund. grade issues, for their additional yield potential. By
INVESTMENT OBJECTIVE maintaining a well-diversified portfolio, generally within
The Fund seeks high current income the universe of Virginia municipal securities, we aim to
exempt from federal and Virginia limit the Fund's exposure to any single credit or market
state income taxes with the sector. In addition, we use a combination of investment
potential for principal strategies, including duration management (managing the
fluctuation associated with Fund's sensitivity to interest rates), market sector
investments in long-term municipal selection and individual credit reviews. We also seek to
securities. limit the distribution of capital gains when appropriate. As
PERFORMANCE REVIEW a long-term portfolio, the Fund normally maintains an
For the 12-month period ended average dollar-weighted maturity of greater than seven years
March 31, 2000, Nations Virginia and a duration of greater than six years.
Municipal Bond Fund Investor A PLEASE COMMENT ON THE FUND'S PERFORMANCE.**
Shares provided shareholders with With a total return of -1.02%, Nations Virginia Municipal
a total return of -1.02%.* Bond Fund (Investor A Shares) outperformed its peer group,
the Lipper Virginia Municipal Debt Funds Universe, which
returned -1.64%, for the 12-month period ended March 31,
2000. The Fund benefited from a shorter duration than its
peer group, which helped protect principal in a rising
interest-rate environment.
WHAT WERE THE ECONOMIC AND MARKET CONDITIONS IN VIRGINIA?
The Commonwealth of Virginia has earned the highest possible
credit ratings from Moody's Investors Service, Inc. ("Aaa"),
Standard & Poor's Corporation ("AAA"), and Fitch IBCA, Inc.
("AAA"). These strong ratings reflect the Commonwealth's
very sound financial management, a diverse and growing
economy, relatively high wealth and income levels and a
manageable debt burden. Virginia also has made significant
progress in providing for its infrastructure spending needs
caused by its high growth.
An example of the Commonwealth's sound fiscal management is
its unreserved general fund balance, which stood at $561.8
million in fiscal 1998, or 7.6% of
</TABLE>
*The performance shown does not reflect the maximum
front-end sales charge of 4.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance
table. The performance shown includes the effect of
fee waivers by the investment adviser and the co-
administrator, which have the effect of increasing
total return.
**Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Virginia Municipal Debt Funds Universe limit their
assets to those securities that are exempt from
taxation in Virginia.
Source for all statistical data -- Banc of America
Capital Management, Inc.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
85
<PAGE> 90
NATIONS VIRGINIA
MUNICIPAL BOND FUND
MUNICIPAL FIXED INCOME
MANAGEMENT TEAM COMMENTARY continued
<TABLE>
<S> <C>
expenditures. Fiscal 1999 results are expected to improve
this already-strong level. At June 30, 1999, Virginia's
revenue stabilization fund and reserve was at $555 million.
These funds provide the Commonwealth with a cushion against
unforeseen problems.
WHAT IS YOUR OUTLOOK FOR VIRGINIA AND THE MUNICIPAL BOND
MARKET FOR THE COMING YEAR?
The Commonwealth and its local governments must continue to
meet their long-term challenges, which include maintaining
diverse economic growth and expanding infrastructure for
schools, roads, water, and sewer. At the same time, they
must continue to preserve sound finances. Importantly, the
Commonwealth has implemented a long-term plan to deal with
retail electric deregulation and associated unfunded costs.
The legislature approved a deregulation bill in April of
1998 with further guidelines specified by the legislature in
March of 1999. We believe the Commonwealth and its local
government units will achieve a significant measure of
success in meeting these long-term challenges.
Our overall outlook for the national municipal bond market
going forward is generally positive. Long-term AAA-rated
general obligation municipal bonds began the period at a
5.06% yield, rising steadily throughout 1999 to a high of
6.04% in January 2000. By March 2000, long-term yields
reversed course and fell to a 5.69% yield. The persistent
divergence between strong economic growth and benign
inflation data continues to pull the Federal Reserve Board
(the Fed) in two directions. The strong growth data demands
that the Fed tighten monetary policy, while the weak
inflation data encourages the Fed to remain on hold. As a
result, the Fed has taken the cautious stance of gradual
increments of 0.25% short-term interest rate increases.
After successive increases in February and in March, the
Federal Funds Rate increased from 5.50% to 6.00%. The Fed
likely will continue its gradual course of 0.25% rate
increases for the next few meetings. As a result, further
declines in long-term yields are unlikely in the near term.
Secondary market liquidity -- or ease of trading -- should
remain a difficult issue in the municipal market as retail
investors continue to focus on equities and direct bond
purchases. Improved demand for municipal bond mutual funds
is possible as the recent increase in equity market
volatility may shift investor preferences. On the supply
side, new issuance has been significantly lower in early
2000, as higher yields have reduced refunding opportunities
for issuers. We estimate that 2000 will end the year with
new issuance down about 15%.
We believe credit quality will remain healthy for
traditional municipal issuers as the strong economy
continues to drive strong increases in state and local tax
collection. The health care sector should begin to stabilize
as management adjustments and improved pricing power should
start to combat the effects of Medicare reimbursement
cutbacks that resulted after the 1997 Balanced Budget
Amendment.
</TABLE>
86
<PAGE> 91
NATIONS VIRGINIA
MUNICIPAL BOND FUND
PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)
[PIE CHART]
<TABLE>
<S> <C>
Lease 3.5%
Education 3.6%
Housing 6.8%
General obligation 20.1%
Water 26.5%
Other 2.6%
Hospital 12.5%
Industrial development revenue/Pollution control revenue 12.4%
Transportation 6.2%
Prerefunded 5.8%
</TABLE>
<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Rivanna, Virginia, Water and Sewer
Authority, Regional Water and Sewer
Systems, Revenue Refunding, Series
1991, 6.450% 10/01/12 5.3%
-------------------------------------------------
2 Virginia State, Residential
Authority, Infrastructure Revenue,
Series 2000A, (MBIA Insured), 5.500%
05/01/21 3.8%
-------------------------------------------------
3 Fairfax County, Virginia, Water
Authority, Revenue, Unrefunded
Balance, Series 1992, 6.000% 04/01/22 3.7%
-------------------------------------------------
4 Staunton, Virginia, Industrial
Development Authority, Educational
Facilities Revenue, (Mary Baldwin
College Project) Series 1996, 6.600%
11/01/14 3.7%
-------------------------------------------------
5 Fairfax County, Virginia, Water and
Sewer Revenue Refunding, Series 1993,
(AMBAC Insured), 5.500% 11/15/13 3.7%
-------------------------------------------------
6 Fairfax County, Virginia, Public
Improvement GO, Series 1999B,
5.500% 12/01/16 3.6%
-------------------------------------------------
7 Virginia State, Housing Development
Authority, Revenue, (Rental Housing
Project) Series 2000B, AMT, 5.750%
08/01/13 3.6%
-------------------------------------------------
8 Giles County, Virginia, Industrial
Development Authority, Solid Waste
Disposal Facilities Revenue, (Hoechst
Celanese Corporation Project) Series
1992, AMT, 6.630% 12/01/22 3.6%
-------------------------------------------------
9 Prince William County, Virginia,
Industrial Development Authority,
Lease Revenue, (ATCC Project) Series
1996, 6.000% 02/01/14 3.6%
-------------------------------------------------
10 Virginia Beach, Virginia, Public
Improvement GO, Series 2000,
5.500% 03/01/18 3.6%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>
PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.
87
<PAGE> 92
NATIONS VIRGINIA
MUNICIPAL BOND FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
Investor A Shares
<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(11/8/93
through
3/31/00) 4.33% 3.54%
</TABLE>
The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Virginia Municipal Bond Fund
from the inception of the share
class. The Lehman Municipal Bond
Index is a broad-based,
unmanaged, total return index
composed of 8,000 investment
grade, long-term maturity bonds.
It is unavailable for
investment. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.
[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]
<TABLE>
<CAPTION>
NATIONS VIRGINIA MUNICIPAL BOND LEHMAN MUNICIPAL BOND INDEX
FUND $12,490 $13,799
------------------------------- ---------------------------
<S> <C> <C>
Nov. 8 1993 9525 10000
9722 10121
8902 9565
8921 9671
8930 9737
1994 8795 9598
9511 10277
9733 10524
10012 10826
10516 11273
10303 11138
10375 11223
10638 11480
1996 10883 11773
10842 11744
11207 12150
11527 12515
11889 12854
12022 13002
12194 13200
12564 13605
1998 12567 13687
12619 13809
12403 13565
12289 13511
12159 13406
Mar. 31 2000 12490 13799
</TABLE>
[INVESTOR A SHARES AT NAV** RETURN CHART]
<TABLE>
<CAPTION>
NATIONS VIRGINIA MUNICIPAL BOND
FUND $13,112
-------------------------------
<S> <C> <C>
Lehman Municipal Bond Index $13,799
Nov. 8 1993 10000 10000
10207 10121
9346 9565
9366 9671
9375 9737
1994 9284 9598
9986 10277
10218 10524
10511 10826
11040 11273
10817 11138
10893 11223
11168 11480
1996 11425 11773
11383 11744
11766 12150
12102 12515
12482 12854
12622 13002
12602 13200
13190 13605
1998 13194 13687
13248 13809
13021 13565
12902 13511
12765 13406
Mar. 31 2000 13112 13799
</TABLE>
TOTAL RETURN (AS OF 3/31/00)
<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 1/11/94 11/8/93 10/21/93 11/3/94
-------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE -0.69% -1.02% -5.74% -1.61% -5.40% -1.58% -2.53%
-------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 5.09% 4.83% 3.14% 4.19% 3.26% 4.20% 4.20%
5 YEARS 5.84% 5.60% 4.59% 4.98% 4.81% 5.05% 5.05%
SINCE INCEPTION 4.27% 4.33% 3.54% 3.45% 3.45% 6.71% 6.71%
</TABLE>
THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.
*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 4.75%.
**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.
***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.
The performance shown includes the effect of fee waivers and expense
reimbursements by the investment adviser and the co-administrator, which have
the effect of increasing total return.
88
<PAGE> 93
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.3%
ALABAMA -- 0.9%
$1,175 Alabama, Special Care
Facilities Financing
Authority, Hospital
Revenue, (Charity
Obligation Group
Project) Series A,
3.750% 11/01/01........ Aa2 NR $ 1,155
--------
ALASKA -- 0.8%
1,000 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1995A, AMT, (AMBAC
Insured),
5.250% 07/01/03........ Aaa AAA 1,006
--------
ARIZONA -- 2.7%
3,500 Phoenix, Arizona,
Industrial Development
Authority,
Single-Family Mortgage
Revenue, Series 1998D,
4.200% 06/01/02........ NR SP1+ 3,449
--------
GEORGIA -- 4.5%
3,645 Atlanta, Georgia, Urban
Residential Finance
Authority, College
Facilities Revenue,
(Morris Brown College
Project) Series 1991,
Prerefunded 10/01/05 @
100,
9.500% 12/01/11........ Aaa NR 4,022
1,500 Georgia, Medical Center
Hospital Authority,
Revenue, Unrefunded
Balance, Series 1992C,
(MBIA Insured),
6.400% 08/01/06........ Aaa AAA 1,573
--------
5,595
--------
GUAM -- 1.6%
2,000 Guam, Government GO,
Series 1995A,
5.375% 09/01/00........ NR BBB- 2,006
--------
ILLINOIS -- 4.2%
1,020 Broadview, Illinois, Tax
Increment Revenue,
Series 1999,
4.300% 07/01/01........ NR NR 1,009
1,260.. Broadview, Illinois, Tax
Increment Revenue,
Series 1999,
4.750% 07/01/05........ NR NR 1,211
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
1$,000.. Chicago, Illinois, O'Hare
International Airport,
General Airport
Revenue, Second Lien,
Series 1996A, AMT,
(AMBAC Insured),
5.000% 01/01/02........ Aaa AAA $ 1,004
2,000.. Illinois State, Toll
Highway Authority, Toll
Revenue, Series 1992A,
Prerefunded 01/01/03 @
102,
5.750% 01/01/17........ A1 AA- 2,083
--------
5,307
--------
INDIANA -- 1.7%
2,205 Fremont, Indiana, Middle
School Building
Corporation, Revenue
Refunding, Series
1994A, (AMBAC Insured),
4.650% 07/15/04........ Aaa AAA 2,174
--------
KENTUCKY -- 1.0%
1,325 Kentucky, Asset/Liability
Commission, University
and College
Improvements General
Fund Revenue, Series
1999-1,
3.500% 03/01/01........ Aa3 AA- 1,309
--------
LOUISIANA -- 1.6%
2,000 De Soto Parish,
Louisiana, PCR
Refunding,
(International Paper
Company Project) Series
1993A,
5.050% 12/01/02........ A3 BBB+ 1,995
--------
MAINE -- 2.7%
3,500 Baileyville, Maine, PCR,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.750% 06/01/05........ Baa2 NR 3,360
--------
MICHIGAN -- 9.6%
2,820 Brighton, Michigan, Area
School District,
Capital Appreciation
GO, Series 1990I,
(AMBAC Insured),
Prerefunded
05/01/05 @ 49.33,
5.250%+ 05/01/15....... Aaa AAA 1,074
1,000 Detroit, Michigan, GO,
Series 1995A,
5.600% 05/01/01........ NR BBB+ 1,011
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 94
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN -- (CONTINUED)
$5,000 Kent County, Michigan,
Airport Facilities
Revenue, (Kent County
International Airport
Project) Series 1995,
AMT, Prerefunded
01/01/05 @ 102,
6.100% 01/01/25........ Aa AAA $ 5,331
1,000 Michigan State, Hospital
Finance Authority,
Revenue, (Ascension
Health Credit Project)
Series 1999B, Mandatory
Put 11/15/05 @ 100,
5.200% 11/15/33........ Aa2 AA 996
2,000 Michigan State, Hospital
Finance Authority,
Revenue, Mandatory Put
11/15/06 @ 100,
5.300% 11/15/33........ Aa2 AA 1,996
1,500 Michigan, Greater Detroit
Resource Recovery
Authority, Revenue
Refunding, Series
1996A, (AMBAC Insured),
5.500% 12/13/04........ Aaa AAA 1,539
--------
11,947
--------
MINNESOTA -- 1.5%
1,875 Ramsey County, Minnesota,
GO, Revenue Refunding,
Series 1992C,
5.500% 12/01/03........ Aaa AA+ 1,927
--------
MISSISSIPPI -- 8.0%
5,000 Grenada County,
Mississippi, Revenue
Refunding,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.300% 09/01/00........ Baa2 NR 4,993
5,000 Lawrence County,
Mississippi, PCR,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.300% 12/01/00........ Baa2 NR 4,996
--------
9,989
--------
MONTANA -- 1.5%
2,000 Forsyth, Montana, PCR
Refunding, (Portland
General Electric
Company Project) Series
1998A,
Mandatory Put 05/01/03
@ 100,
4.600% 05/01/33........ A3 A- 1,927
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY -- 3.3%
$4,000 New Jersey, Health Care
Facilities Funding
Authority, Revenue
Refunding, Series
1991A, (FHA Insured),
Prerefunded 02/01/01 @
102,
6.800% 08/01/19........ Aa2 NR $ 4,160
--------
NEW YORK -- 5.6%
2,075 Chautauqua County, New
York, Certificates of
Participation, Series
1999A,
6.125% 02/01/01........ MIG1 NR 2,053
1,000 New York State, GO
Refunding, Series
1995B,
6.375% 08/15/00........ A2 A+ 1,008
4,000 New York State, Thruway
Authority, Service
Contract Revenue
Refunding, (Local
Highway and Bridges
Project) Series 1997,
5.000% 04/01/01........ Baa1 A 4,024
--------
7,085
--------
NORTH CAROLINA -- 4.0%
1,000 Durham, North Carolina,
GO Refunding, Series
1992,
5.700% 02/01/05........ Aa1 AAA 1,028
1,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.300% 08/15/02........ Baa1 NR 975
1,560 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.300% 08/15/03........ Baa1 NR 1,495
1,630 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.400% 08/15/04........ Baa1 NR 1,540
--------
5,038
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 95
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO -- 1.6%
$2,015 Akron/Bath/Copley, Ohio,
Joint Township Hospital
District, Revenue,
(Summa Health Systems
Project) Series 1993A,
5.750% 11/15/08........ Baa1 NR $ 1,955
--------
OKLAHOMA -- 1.9%
2,385 Tulsa County, Oklahoma,
Independent School
District Number 001,
GO, Series 2000A,
5.000% 03/01/03........ Aa2 AA 2,400
--------
PENNSYLVANIA -- 10.6%
6,425 Dauphin County,
Pennsylvania, General
Authority, Revenue,
(School District Pooled
Financing Program II)
Series 1997, (AMBAC
Insured), Mandatory Put
09/01/01 @ 100,
4.450% 09/01/32........ Aaa NR 6,397
2,000 Delaware County,
Pennsylvania Authority,
Health Care Revenue,
Series 1993B,
Prerefunded 11/15/05 @
100,
6.000% 11/15/07........ Aaa BBB+ 2,085
1,560 Greene County,
Pennsylvania,
Industrial Development
Authority, Revenue,
(Monongahela Power
Company Project) Series
1998B,
4.350% 02/01/02........ A2 A 1,537
2,200 Greene County,
Pennsylvania,
Industrial Development
Authority, Revenue,
(Potomac Edison Company
Project) Series 1998B,
4.350% 02/01/02........ A2 A 2,168
1,000 Monroeville,
Pennsylvania, Hospital
Authority, Revenue
Refunding, (Forbes
Health Systems -
Allegheny University
Medical Centers
Project) Series 1995,
5.125% 10/01/00........ Caa1 CCC 995
--------
13,182
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA -- 4.0%
$1,000 Berkeley County, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1991, (MBIA
Insured), Prerefunded
06/01/01 @ 102,
7.000% 06/01/16........ Aaa AAA $ 1,049
1,000 Richland County, South
Carolina, PCR
Refunding, (Union Camp
Corporation Project)
Series 1992C,
5.875% 11/01/02........ A3 BBB+ 1,020
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
5.750% 12/15/01........ Baa1 BBB 1,000
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
6.125% 12/15/02........ Baa1 BBB 1,000
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
6.300% 12/15/03........ Baa1 BBB 1,000
--------
5,069
--------
TENNESSEE -- 3.9%
1,775 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
System Inc.) Series
1999,
4.625% 04/01/03........ Baa1 NR 1,733
2,100 McMinn County, Tennessee,
Industrial Development
Board, PCR Refunding,
(Bowater Inc. Project)
Series 1991,
6.850% 04/01/01........ Baa3 BBB 2,145
1,000 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue, (Federal
Express Corporation
Project), Series 1984,
7.875% 09/01/09........ Baa2 BBB 1,065
--------
4,943
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 96
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- 5.5%
$ 935 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior Lien,
Series 1994A-2, AMT,
(GTD STD LNS),
5.850% 06/01/01........ Aaa NR $ 942
2,955 Panhandle-Plains, Texas,
Higher Education
Authority, Revenue
Refunding, Series
1993E, AMT, (GTD STD
LNS),
5.550% 03/01/05........ A NR 2,967
1,000 Texas State, College
Student Loan Authority,
Revenue, Series 1995,
AMT,
5.100% 08/01/01........ Aa1 AA 1,006
2,000 Texas State, College
Student Loan Authority,
Revenue, Series 1995,
AMT,
5.300% 08/01/03........ Aa1 AA 2,022
--------
6,937
--------
UTAH -- 1.9%
2,370 Jordan, Utah, School
District, GO, Series
1997, (SCH BD GTY),
5.000% 06/15/02........ NR AAA 2,388
--------
VIRGINIA -- 10.2%
3,000 Fairfax County, Virginia,
Economic Development
Authority, Resource
Recovery, Revenue
Refunding, Series
1998A,
AMT, (AMBAC Insured),
5.950% 02/01/07........ Aaa AAA 3,158
2,350 Greensville County,
Virginia, Industrial
Development Authority,
Revenue Refunding,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.100% 08/01/00........ Baa2 NR 2,348
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$2,000 Louisa, Virginia,
Industrial Development
Authority, Solid Waste
and Sewer Disposal
Revenue, (Virginia
Electric and Power
Company Project)
Series 1997A, AMT,
Mandatory Put 03/31/02
@ 100,
5.150% 04/01/22........ VMG1 A-1 $ 1,995
2,200 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1992A, (MBIA Insured),
6.500% 10/01/05........ Aaa AAA 2,315
1,000 Norfolk, Virginia, GO,
Series 1995,
5.250% 06/01/01........ A1 AA 1,009
1,825 Virginia, Education Loan
Authority, Guaranteed
Student Loan Revenue,
Series 1992G, AMT, (GTD
STD LNS),
6.625% 09/01/03........ Aaa NR 1,880
--------
12,705
--------
WASHINGTON -- 2.5%
1,000 Washington State, Public
Power Supply Revenue
Refunding, Series
1990C,
7.300% 07/01/00........ Aa1 AA- 1,007
1,990 Washington State, Public
Power Supply Systems
Revenue Refunding,
(Nuclear Project Number
1) Series 1991A,
6.600% 07/01/04........ Aa AA 2,068
--------
3,075
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $122,455)........................ 122,083
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 97
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 5.7%
(Cost $7,176)
7,176 Nations Municipal Reserves#........... $ 7,176
--------
TOTAL INVESTMENTS
(Cost $129,631*)............. 103.0% 129,259
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (3.0)%
Receivable for Fund shares sold....... $ 30
Interest receivable................... 1,679
Receivable from investment advisor.... 14
Payable for Fund shares redeemed...... (587)
Administration fee payable............ (21)
Shareholder servicing and distribution
fees payable........................ (15)
Distributions payable................. (378)
Payable for investment securities
purchased........................... (4,369)
Accrued Trustees'/Directors' fees and
expenses............................ (20)
Accrued expenses and other
liabilities......................... (139)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (3,806)
--------
NET ASSETS..................... 100.0% $125,453
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 39
Accumulated net realized loss on
investments sold.................... (239)
Net unrealized depreciation of
investments......................... (372)
Paid-in capital....................... 126,025
--------
NET ASSETS............................ $125,453
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($94,392,724 / 9,497,204 shares
outstanding)........................ $9.94
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($22,414,863 / 2,254,951
shares outstanding)................. $9.94
=====
Maximum sales charge.................. 1.00%
Maximum offering price per share...... $10.04
INVESTOR B SHARES:
Net asset value and offering price per
share** ($7,030,032 / 707,269 shares
outstanding)........................ $9.94
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,615,780 / 162,582 shares
outstanding)........................ $9.94
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized depreciation of $372 on
investment securities was comprised of gross appreciation of $356 and gross
depreciation of $728 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $129,631.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations Short-Term Municipal Income Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
AMBAC 13.03%
Nations Short-Term Municipal Income Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 22.86%
Hospital Revenue 13.47%
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 98
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.2%
ALABAMA -- 2.7%
$ 3,265 Alabama, Special Care
Facilities Financing
Authority, Hospital
Revenue, (Charity
Obligation Group
Project) Series A,
(MBIA Insured, Escrowed
to Maturity),
4.625% 11/01/10........ Aa2 NR $ 3,067
2,500 Birmingham, Alabama,
Industrial Water Board,
Industrial Water Supply
Revenue, Series 1978,
6.000% 07/01/07........ NR AAA 2,655
2,500 Birmingham, Alabama,
Revenue, (Baptist
Medical Center of
Birmingham Project)
Series 1993A, (MBIA
Insured),
5.500% 08/15/05........ Aaa AAA 2,541
9,240 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1992,
7.000% 06/01/22........ Baa1 BBB 9,382
5,750 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1993A, AMT,
6.375% 03/01/29........ Baa1 BBB 5,519
--------
23,164
--------
ALASKA -- 1.8%
3,000 Alaska State, Housing
Finance Corporation,
Revenue, Series 1995A,
(MBIA Insured),
5.400% 06/01/08........ Aaa AAA 3,018
3,345 Alaska, Industrial
Development and Export
Authority, Revenue
Refunding, Series
1998A, AMT, (MBIA
Insured),
5.250% 04/01/12........ Aaa AAA 3,255
3,280 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1995A, AMT, (AMBAC
Insured),
5.250% 07/01/03........ Aaa AAA 3,299
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ALASKA -- (CONTINUED)
$ 3,000 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1997A, AMT, (AMBAC
Insured),
5.150% 07/01/05........ Aaa AAA $ 2,986
1,250 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1997A, AMT, (AMBAC
Insured),
5.200% 07/01/06........ Aaa AAA 1,243
2,000 Anchorage, Alaska, GO,
Series 1996A, (AMBAC
Insured),
5.100% 08/01/07........ Aaa AAA 2,003
--------
15,804
--------
ARIZONA -- 0.6%
955 Arizona State, University
Revenue Refunding,
Series 1992A,
6.500% 07/01/01........ A1 AA 978
1,100 Glendale, Arizona, GO
Refunding, Series 1993,
(FGIC Insured),
4.950% 07/01/01........ Aaa AAA 1,107
300 Maricopa County, Arizona,
Unified High School
District Number 210,
GO, Series 1991D,
Prerefunded 07/01/01 @
101,
6.700% 07/01/03........ Aa3 AA 311
2,125 Pima County, Arizona,
Unified School
District, GO, Series
1995G, (MBIA Insured),
7.300% 07/01/05........ Aaa AAA 2,362
400 Tempe, Arizona, GO,
Series 1992,
5.600% 07/01/00........ Aa1 AA+ 402
--------
5,160
--------
ARKANSAS -- 0.8%
7,000 Hot Springs, Arkansas,
IDR Refunding,
(Willamette Industries
Project) Series 1991,
6.650% 12/01/02........ NR A- 7,266
--------
COLORADO -- 0.6%
1,500 Arapahoe County,
Colorado, School
District Number 005,
GO, Series 1990,
Prerefunded 12/15/00 @
101,
7.000% 12/15/04........ Aa2 AA 1,544
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 99
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
COLORADO -- (CONTINUED)
$ 3,445 Denver City and County,
Colorado, GO, Series
1992A, Prerefunded
08/01/00 @ 101,
5.700% 08/01/01........ Aa2 AAA $ 3,497
--------
5,041
--------
CONNECTICUT -- 1.5%
1,000 Connecticut State, GO,
Series 1993B,
4.800% 03/15/01........ Aa3 AA 1,007
6,465 Connecticut State,
Housing Finance
Authority, Revenue,
(Housing Mortgage
Finance Program) Series
1997D-2, AMT,
5.600% 11/15/21........ Aa2 AA 5,977
6,140 Connecticut State,
Transportation
Infrastructure Special
Tax GO Refunding,
Series 1993A,
(FGIC-TCRS Insured),
5.100% 09/01/04........ Aaa AAA 6,212
--------
13,196
--------
DISTRICT OF COLUMBIA -- 0.3%
1,000 District of Columbia,
Hospital Revenue
Refunding, (Medlantic
Healthcare Group
Project) Series 1997A,
(MBIA Insured),
6.000% 08/15/06........ Aaa AAA 1,054
1,350 District of Columbia,
Hospital Revenue
Refunding, (Medlantic
Healthcare Group
Project) Series 1997A,
(MBIA Insured),
6.000% 08/15/07........ Aaa AAA 1,429
--------
2,483
--------
FLORIDA -- 6.8%
1,000 Broward County, Florida,
School District, GO
Refunding, Series 1993,
5.100% 02/15/02........ A1 AA- 1,009
2,700 Duval County, Florida,
Housing Finance
Authority, Multi-Family
Housing Revenue
Refunding, (United
Dominion Realty Trust -
Greentree Place
Project) Series 1995,
Mandatory Put 04/01/09
@ 100,
6.750% 04/01/25........ NR BBB+ 2,816
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 4,635 Duval County, Florida,
Housing Finance
Authority, Multi-Family
Mortgage Revenue
Refunding, (The Cove
Project) Series 1992,
6.100% 10/01/02........ NR AAA $ 4,727
4,850 Escambia County, Florida,
Housing Finance
Authority,
Single-Family Mortgage,
Revenue, Series 1999,
AMT, (FNMA/GNMA COLL),
4.500% 10/01/09........ Aaa NR 4,563
3,035 Florida State, Board of
Education, Capital
Outlay GO, Series
1995A,
5.400% 01/01/06........ Aa2 AA+ 3,108
7,440 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put 12/01/03
@ 100,
7.000% 12/01/24........ NR BBB+ 7,832
2,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (United
Dominion Realty Trust -
Andover Project) Series
1996E, AMT, Mandatory
Put 05/01/08 @ 100,
6.350% 05/01/26........ NR BBB+ 2,051
1,500 Jacksonville, Florida,
Electric Authority,
Revenue Refunding, (St.
John River Project)
Issue 2, Series
1993-10,
4.600% 10/01/00........ Aa2 AA 1,504
5,900 Jacksonville, Florida,
Electric Authority,
Revenue Refunding, (St.
John River Project)
Issue 2, Series
1993-10,
5.000% 10/01/04........ Aa2 AA 5,934
2,500 Lakeland, Florida,
Electrical and Water
Revenue, Series 1996,
Prerefunded 10/01/06 @
102,
5.500% 10/01/26........ A1 AA- 2,611
2,080 Nassau County, Florida,
PCR Refunding, (ITT
Rayonier, Inc. Project)
Series 1992,
5.700% 06/01/01........ Baa2 BBB- 2,097
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 100
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 4,000 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1992,
5.600% 10/01/03........ Aa1 AA $ 4,118
7,685 Palm Beach County,
Florida, Health
Facilities Authority
Revenue, (Good
Samaritan Project)
Series 1993, (MBIA-IBC
Insured), Prerefunded
10/01/03 @ 102,
6.300% 10/01/22........ Aaa AAA 8,166
5,000 Tampa, Florida, Health
Systems Revenue,
(Catholic Health East
Project) Series
1998A-1, (MBIA
Insured),
5.500% 11/15/13........ Aaa AAA 5,072
4,000 Tampa, Florida, Health
Systems Revenue,
(Catholic Health East
Project) Series
1998A-1, (MBIA
Insured),
5.500% 11/15/14........ Aaa AAA 4,036
--------
59,644
--------
GEORGIA -- 2.0%
3,955 Atlanta, Georgia, Urban
Residential Finance
Authority, College
Facilities Revenue,
(Morris Brown College
Project) Series 1991,
Prerefunded 10/01/05 @
100,
9.500% 12/01/11........ Aaa NR 4,364
3,000 Cartersville, Georgia,
Development Authority,
Sewer Facilities
Revenue Refunding,
(Anheuser-Busch
Companies, Inc.
Project) Series 1997,
AMT,
5.625% 05/01/09........ A1 A+ 3,048
5,000 Fulton and DeKalb
Counties, Georgia,
Hospital Authority, GO
Refunding Certificates,
(Grady Memorial
Hospital Project)
Series 1993, (MBIA
Insured),
5.250% 01/01/04........ Aaa AAA 5,052
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 1,105 Fulton County, Georgia,
Development Authority,
Revenue, (Clark Atlanta
University Project)
Series 1995, (CONNIE
LEE Insured),
5.100% 01/01/05........ Baa3 AAA $ 1,113
4,000 Gwinnett County, Georgia,
School District, GO
Refunding, Series
1992B,
6.200% 02/01/03........ Aa1 AA+ 4,152
--------
17,729
--------
HAWAII -- 1.4%
1,000 Hawaii State, GO, Series
1991BU,
5.850% 11/01/01........ A1 A+ 1,018
2,000 Hawaii State, GO, Series
1995CJ,
5.625% 01/01/02........ A1 A+ 2,028
6,000 Hawaii State, GO, Series
1997CN, (FGIC Insured),
6.250% 03/01/04........ Aaa AAA 6,285
2,500 Honolulu City and County,
Hawaii, GO Refunding,
Series 1990A,
7.350% 07/01/07........ Aa3 AA- 2,835
--------
12,166
--------
ILLINOIS -- 9.0%
2,500 Chicago, Illinois, Gas
Supply Revenue,
(Peoples Gas Light and
Coke Project) Series
1985A,
6.875% 03/01/15........ Aa3 AA- 2,624
7,105 Chicago, Illinois, GO
Refunding, Series 1999,
(FGIC Insured),
5.250% 01/01/18........ Aaa AAA 6,781
2,165 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Greater Chicago Capital
Improvement GO, Series
1995,
5.750% 12/01/01........ Aa1 AA 2,204
1,100 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Greater Chicago Capital
Improvement GO, Series
1993,
5.000% 12/01/02........ Aa1 AA 1,108
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 101
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 2,000 Chicago, Illinois, O'Hare
International Airport
Revenue, (Passenger
Facilities Charge
Project) Series 1996B,
AMT, (AMBAC Insured),
5.000% 01/01/02........ Aaa AAA $ 2,008
10,200 Chicago, Illinois, Park
District, GO, Series
1995,
6.600% 11/15/14........ Aa3 AA 11,053
2,000 Chicago, Illinois, School
Finance Authority, GO,
Series 1994A, (MBIA
Insured),
4.800% 06/01/04........ Aaa AAA 1,985
1,160 Chicago, Illinois, School
Finance Authority, GO,
Series 1994A, (MBIA
Insured),
4.900% 06/01/05........ Aaa AAA 1,152
4,000 Chicago, Illinois, Water
Revenue, Series 1992,
(AMBAC Insured),
5.400% 11/01/02........ Aaa AAA 4,061
2,000 Cook County, Illinois,
Community College
District Number 508,
Certificates of
Participation, Series
1990, (FGIC Insured),
8.750% 01/01/07........ Aaa AAA 2,407
1,500 Cook County, Illinois,
GO, Series 1996, (FGIC
Insured),
5.100% 11/15/03........ Aaa AAA 1,513
1,145 Du Page County, Illinois,
School District, GO,
Series 1997, (FGIC
Insured),
6.750% 02/01/11........ Aaa NR 1,284
1,100 Illinois State, GO,
Series 1994,
5.500% 08/01/03........ Aa2 AA 1,123
12,500 Illinois State, Sales Tax
Revenue Refunding,
Series 1993S,
6.000% 06/15/03........ Aa2 AAA 12,940
7,560 Illinois Student
Assistance Commission,
Student Loan Revenue,
Series 1999RR, AMT,
(GTD STD LNS),
4.250% 09/01/06........ Aaa NR 6,997
1,000 Illinois, Health
Facilities Authority,
Revenue Refunding,
(Lutheran General
Health Systems Project)
Series 1993C,
5.250% 04/01/02........ A1 A+ 1,005
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 6,320 Illinois, Health
Facilities Authority,
Revenue, (Highland Park
Hospital Project)
Series 1991B, (FGIC
Insured),
5.900% 10/01/12........ Aaa AAA $ 6,533
1,595 Lake County, Illinois,
High School District
Number 125, GO, Series
1996,
5.000% 01/01/04........ Aa1 NR 1,601
1,050 Lansing, Illinois, Sales
Tax Increment Revenue
Refunding, (Landings
Redevelopment Project)
Series 1992,
6.500% 12/01/02........ NR BBB 1,084
2,400 Metropolitan Pier and
Exposition Authority,
Revenue, Series 1992,
(MBIA-IBC Insured),
6.500% 06/01/05........ Aaa AAA 2,564
1,580 Metropolitan Pier and
Exposition Authority,
Revenue, Series 1996A,
(AMBAC Insured),
6.000% 12/15/06........ Aaa AAA 1,669
420 Metropolitan Pier and
Exposition Authority,
Revenue, Series 1996A,
(AMBAC Insured,
Escrowed to Maturity),
6.000% 12/15/06........ Aaa AAA 446
1,000 Regional Transportation
Authority of Illinois,
Revenue, Series 1991A,
(FGIC Insured),
Prerefunded 11/01/01 @
102,
6.350% 11/01/04........ Aaa AAA 1,046
3,300 Regional Transportation
Authority of Illinois,
Revenue, Series 1994A,
(AMBAC Insured),
5.800% 06/01/05........ Aaa AAA 3,426
--------
78,614
--------
INDIANA -- 1.1%
1,280 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital of
Indiana, Inc. Project)
Series 1992,
6.200% 09/15/00........ A NR 1,290
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 102
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA -- (CONTINUED)
$ 1,040 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital of
Indiana, Inc. Project)
Series 1992,
6.500% 09/15/02........ A NR $ 1,073
2,000 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Clarian
Health Partners, Inc.
Project) Series 1996A,
5.000% 02/15/04........ Aa3 AA 1,987
2,880 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Methodist
Hospital of Indiana,
Inc. Project) Series
1992A, (Escrowed to
Maturity),
5.750% 09/01/15........ Aa AA- 2,954
2,000 Indiana, Secondary Market
for Education Loan
Revenue, Series 1998F,
AMT, (AMBAC Insured),
4.450% 12/01/05........ Aaa NR 1,908
--------
9,212
--------
IOWA -- 2.2%
9,650 Iowa, Student Loan
Liquidity Corporation,
Student Loan Revenue
Refunding, Series
1998J, AMT, (AMBAC
Insured),
4.800% 06/01/09........ Aaa AAA 9,155
10,000 Iowa, Student Loan
Liquidity Corporation,
Student Loan Revenue,
(Iowa College Student
Aid Project) Series
1997B, AMT,
4.900% 12/01/05........ Aaa NR 9,872
--------
19,027
--------
KANSAS -- 2.0%
5,000 Kansas State, Department
of Transportation,
Highway Revenue, Series
1992,
7.250% 03/01/05........ Aa2 AA+ 5,499
1,585 Kansas State, Development
Finance Authority,
Revenue Refunding,
Series 1999, (FSA
Insured),
4.750% 06/01/05........ Aaa AAA 1,571
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 5,000 Kansas State, Development
Finance Authority,
Revenue, (Board of
Regents - Rehabilitation
Project) Series
1997G-2, (AMBAC
Insured),
5.500% 10/01/06........ Aaa AAA $ 5,154
4,500 Kansas State, Development
Finance Authority,
Revenue, Series 1998A,
4.800% 06/01/13........ NR A- 4,204
2,175 Labette County, Kansas,
Single-Family Mortgage
Revenue, Zero Coupon
Capital Accumulator
Bonds, Series 1982,
(Escrowed to Maturity),
5.800%+ 12/01/14....... Aaa A- 962
--------
17,390
--------
MAINE -- 0.1%
1,000 Maine, Municipal Board,
Revenue Refunding,
Series 1995E, (AMBAC
Insured),
5.250% 11/01/04........ Aaa AAA 1,016
--------
MARYLAND -- 1.9%
1,500 Baltimore, Maryland, Port
Facilities Revenue,
(E.I. duPont de Nemours
Project) Series 1985,
6.500% 12/01/10........ Aa3 AA- 1,584
1,500 Maryland State, GO
Refunding, Series
1990-3, Prerefunded
07/15/00 @ 101.5,
6.800% 07/15/04........ Aaa AAA 1,534
4,890 Maryland State, GO
Refunding, Series
1991-3,
6.250% 07/15/02........ Aaa AAA 4,989
290 Maryland State,
Transportation
Authority, Special
Obligation Revenue,
(Baltimore -
Washington, D.C.
International Airport
Project) Series 1994A,
AMT, (FGIC Insured),
6.400% 07/01/19........ Aaa AAA 291
3,500 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993,
(FSA Insured),
5.200% 06/15/06........ Aaa AAA 3,541
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 103
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 2,000 Washington County,
Maryland, Suburban
Sanitation District
Authority, General
Construction GO
Refunding, Series 1993,
5.000% 06/01/04........ Aa1 AA $ 2,019
2,500 Washington County,
Maryland, Suburban
Sanitation District
Authority, Water Supply
GO Refunding, Series
1993,
4.900% 12/01/05........ Aa1 AA 2,509
--------
16,467
--------
MASSACHUSETTS -- 4.6%
400 Massachusetts State,
Consolidated Loan GO,
Series 1991D,
6.375% 07/01/00........ Aa2 AA- 402
1,000 Massachusetts State, GO
Refunding, Series
1993B,
5.000% 11/01/01........ Aa2 AA- 1,008
5,000 Massachusetts State, GO
Refunding, Series
1993C,
5.000% 08/01/07........ Aa2 AA- 5,004
12,840 Massachusetts State, GO
Refunding, Series
1993C, (AMBAC Insured),
4.950% 08/01/05........ Aaa AAA 12,884
6,000 Massachusetts State,
Water Resources
Authority, General
Revenue Refunding,
Series 1993B,
5.125% 03/01/04........ A1 A+ 6,054
4,175 Massachusetts,
Educational Financing
Authority, Educational
Loan Revenue Refunding,
Series 1999A, AMT,
(AMBAC Insured),
4.750% 07/01/11........ Aaa AAA 3,849
3,745 Massachusetts,
Educational Financing
Authority, Educational
Revenue, Series 1998C,
AMT, (MBIA Insured),
4.600% 12/01/08........ Aaa AAA 3,485
3,325 Massachusetts,
Educational Financing
Authority, Educational
Revenue, Series 1998C,
AMT, (MBIA Insured),
4.700% 12/01/09........ Aaa AAA 3,106
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS -- (CONTINUED)
$ 2,000 Massachusetts, University
of Lowell Building
Authority, Revenue,
Series 1995A, (AMBAC
Insured),
5.700% 11/01/09........ Aaa AAA $ 2,078
2,000 New England Education
Loan Marketing Company
of Massachusetts,
Student Loan Revenue
Refunding, Series
1993A, AMT,
5.700% 07/01/05........ Aa2 A- 2,049
--------
39,919
--------
MICHIGAN -- 2.5%
7,500 Detroit, Michigan,
Convention Facilities,
Revenue Refunding,
(Cobo Hall Expansion
Project) Series 1993,
(FSA Insured),
5.100% 09/30/04........ Aaa AAA 7,560
1,000 Detroit, Michigan, GO
Refunding, Series
1995B,
6.750% 04/01/03........ Baa1 A- 1,044
2,000 Detroit, Michigan, GO
Refunding, Series
1995B,
7.000% 04/01/04........ Baa1 A- 2,124
7,000 Michigan State, Hospital
Finance Authority,
Revenue, (Ascension
Health Credit Project)
Series 1999B, Mandatory
Put 11/05/04,
5.050% 11/15/33........ Aa2 AA 6,925
4,000 Michigan State, Hospital
Finance Authority,
Revenue, (Ascension
Health Credit Project)
Series 1999B, Mandatory
Put 11/15/05 @ 100,
5.200% 11/15/33........ Aa2 AA 3,983
--------
21,636
--------
MINNESOTA -- 1.3%
3,000 Minnesota State, GO,
Refunding, Series 1998,
4.000% 11/01/04........ Aaa AAA 2,857
1,390 Rochester, Minnesota,
Health Care Facilities
Revenue, (Mayo
Foundation - Mayo
Medical Center Project)
Series 1988C,
7.100% 11/15/00........ NR AA+ 1,415
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 104
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MINNESOTA -- (CONTINUED)
$ 2,150 Southern Minnesota
Municipal Power Agency,
Power Supply Systems
Revenue, Refunded
Balance, Series 1992B,
5.800% 01/01/07........ Aaa AAA $ 2,211
3,850 Southern Minnesota
Municipal Power Agency,
Power Supply Systems
Revenue, Unrefunded
Balance, Series 1992B,
5.800% 01/01/07........ A2 A+ 3,939
900 St. Paul, Minnesota,
Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.100% 12/01/01........ Aaa AAA 908
--------
11,330
--------
MISSISSIPPI -- 1.2%
8,000 Adams County,
Mississippi, PCR,
(International Paper
Company Project) Series
1994A,
5.500% 12/01/05........ A3 BBB+ 8,038
2,370 Mississippi, Higher
Education Authority
Revenue, Series 1992C,
AMT, (GTD STD LNS),
6.400% 01/01/03........ NR A 2,437
--------
10,475
--------
MISSOURI -- 0.6%
4,000 Kansas City, Missouri,
Industrial Development
Authority, IDR, (Owens-
Illinois,
Inc. - Georgia-Pacific
Corporation Project)
Series 1998,
4.900% 12/31/08........ Baa2 NR 3,737
400 Missouri State, Board of
Public Buildings,
Revenue Refunding,
Series 1991,
5.900% 12/01/01........ Aa2 AA 409
1,000 Missouri State,
Environmental
Improvement and Energy
Resource Authority, PCR
Refunding, (Associated
Electrical
Cooperation - Thomas
Hill Project ) Series
1996,
5.500% 12/01/05........ A1 AA 1,021
300 Missouri State, GO
Refunding, (Third State
Building Project)
Series 1991B,
5.500% 11/01/01........ Aaa AAA 305
--------
5,472
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MONTANA -- 0.4%
$ 4,475 Lewis and Clark County,
Montana, Environmental
Facilities Revenue,
(Asarco, Inc. Project)
Series 1998, AMT,
5.850% 10/01/33........ B3 B+ $ 3,407
--------
NEBRASKA -- 0.1%
1,000 Nebraska Public Power
District, Power Supply
Systems Revenue, Series
1993,
5.300% 01/01/02........ Aaa AAA 1,010
--------
NEVADA -- 1.3%
6,175 Clark County, Nevada,
School District, GO
Refunding, Series
1993B, (FGIC Insured),
5.375% 05/01/05........ Aaa AAA 6,289
1,000 Nevada State, Municipal
Board, GO, (Bank
Project Number 28-31)
Series 1989C,
7.000% 01/01/03........ Aaa AAA 1,017
1,000 Nevada State, Municipal
Board, GO, (Bank
Project Number 38-39)
Series 1992A,
6.000% 07/01/01........ NR AA 1,019
2,910 Reno, Nevada, GO
Refunding, Series
1993A, (FGIC Insured),
5.300% 04/01/05........ Aaa AAA 2,953
--------
11,278
--------
NEW JERSEY -- 1.7%
1,100 Bergen County, New
Jersey, Utilities
Authority, Water PCR,
Series 1992B, (FGIC
Insured),
5.500% 12/15/02........ Aaa AAA 1,125
3,340 New Jersey State Housing
and Mortgage Finance
Agency, Revenue, (Home
Buyer Project), Series
1999, AMT,
5.300% 04/01/08........ Aaa AAA 3,344
3,440 New Jersey State Housing
and Mortgage Finance
Agency, Revenue, (Home
Buyer Project), Series
1999, AMT,
5.400% 04/01/09........ Aaa AAA 3,461
5,000 New Jersey State, GO
Refunding, Series
1992D,
5.500% 02/15/04........ Aa1 AA+ 5,126
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 105
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY -- (CONTINUED)
$ 1,100 New Jersey State,
Transportation Trust
Fund Authority,
Transportation Systems,
Revenue Refunding,
Series 1994A, (AMBAC
Insured),
5.200% 12/15/00........ Aaa AAA $ 1,108
1,000 New Jersey, University of
Medicine and Dentistry,
Revenue, Series 1989C,
7.000% 12/01/00........ A3 AA- 1,019
--------
15,183
--------
NEW MEXICO -- 0.6%
2,000 New Mexico State, GO,
Series 1995,
5.250% 09/01/03........ Aa1 AA+ 2,004
2,120 New Mexico, Mortgage
Finance Authority,
Single-Family Mortgage
Revenue, Series
1997E-2, AMT,
(GNMA/FNMA/FHLMC COLL),
5.600% 07/01/17........ NR AAA 2,003
1,305 New Mexico, Mortgage
Financial Authority,
Single-Family Mortgage
Revenue, Series
1997C-2, AMT,
(GNMA/FNMA/ FHLMC
COLL),
5.950% 07/01/17........ Aaa NR 1,302
--------
5,309
--------
NEW YORK -- 2.3%
3,000 New York City, New York,
Municipal Assistance
Corporation, Revenue,
Series 1997J,
5.750% 07/01/03........ Aa2 AA 3,086
5,000 New York State, Dormitory
Authority, Revenue,
(City University
Project) Series 1993B,
5.250% 07/01/06........ Baa1 BBB+ 5,005
7,000 New York State, Dormitory
Authority, State
University Educational
Facilities Revenue,
Series 1993A,
5.400% 05/15/04........ A3 A 7,105
2,260 New York, New York, GO,
Series 1993E, (MBIA-IBC
Insured), Prerefunded
05/15/03 @ 101.5,
5.800% 05/15/05........ Aaa AAA 2,359
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK -- (CONTINUED)
$ 2,305 New York, New York, GO,
Unrefunded Balance,
Series 1993-E,
(MBIA-IBC Insured),
5.800% 05/15/05........ Aaa AAA $ 2,391
--------
19,946
--------
NORTH CAROLINA -- 4.2%
3,000 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
6.000% 07/01/24........ Aaa AAA 3,010
2,000 Cumberland County, North
Carolina, GO, Series
1998, (FGIC Insured),
5.000% 03/01/17........ Aaa AAA 1,878
8,000 Mecklenburg County, North
Carolina, GO Refunding,
Series 1992,
5.750% 03/01/03........ Aaa AAA 8,197
3,000 Mecklenburg County, North
Carolina, Public
Improvement GO, Series
1992, Prerefunded
01/01/02 @ 101,
6.200% 01/01/04........ Aaa AAA 3,105
10,000 North Carolina State,
Public School Building,
GO, Series 1999,
4.600% 04/01/15........ Aaa AAA 9,028
1,895 North Carolina, Housing
Finance Agency,
(Single-Family Program)
Series 1997RR, AMT,
(FHA Insured),
5.850% 09/01/28........ Aa2 AA 1,849
4,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Carolina
Medicorp, Inc. Project)
Series 1996,
5.125% 05/01/16........ A1 AA 3,696
3,135 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Pitt County
Memorial Hospital
Project) Series 1998A,
4.400% 12/01/08........ Aa3 AA- 2,869
3,000 North Carolina, Medical
Care Commission,
Hospital Revenue, (Pitt
County Memorial
Hospital Project)
Series 1998B,
5.000% 12/01/18........ Aa3 AA- 2,672
--------
36,304
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 106
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO -- 0.9%
$ 6,060 Montgomery County, Ohio,
Hospital Revenue,
(Kettering Medical
Center Project) Series
1999,
6.500% 04/01/13........ Baa1 BBB+ $ 5,958
1,730 Ohio, Housing Finance
Agency, Mortgage
Revenue, (Residential
Project) Series
1998B-2, AMT, (GNMA
COLL),
4.800% 09/01/07........ Aaa NR 1,680
--------
7,638
--------
OKLAHOMA -- 0.5%
5,000 Oklahoma, Development
Finance Authority,
Revenue Refunding,
(Hillcrest Healthcare
Center Inc. Project)
Series 1999A,
5.625% 08/15/19........ Baa2 BBB 4,063
--------
OREGON -- 0.7%
3,000 Multnomah County, Oregon,
School District Number
1J - Portland, GO,
Series 1996,
5.500% 06/01/05........ Aa3 A+ 3,084
1,300 Portland, Oregon, Sewer
Systems Revenue, Series
1994A,
5.450% 06/01/03........ A1 A+ 1,327
1,300 Washington County,
Oregon, Sewer Revenue
Refunding, Senior Lien,
Series 1992A, (AMBAC
Insured),
5.300% 10/01/01........ Aaa AAA 1,316
--------
5,727
--------
PENNSYLVANIA -- 3.7%
5,000 Allegheny County,
Pennsylvania, Airport
Revenue Refunding,
(Pittsburgh
International Airport
Project) Series
1997A-1, AMT, (MBIA
Insured),
5.750% 01/01/08........ Aaa AAA 5,157
3,575 Delaware County,
Pennsylvania Authority,
Health Care Revenue,
Series 1993B,
Prerefunded 11/15/05 @
100,
6.000% 11/15/07........ Aaa BBB+ 3,727
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
$ 2,890 Erie, Pennsylvania, Water
Authority, Water
Revenue, Series 1991,
Prerefunded 12/01/01 @
100,
7.125% 12/01/11........ Baa3 BBB $ 3,002
9,180 Pennsylvania, Housing
Finance Agency, Single-
Family Mortgage
Revenue, Series
1997A-61, AMT,
5.450% 10/01/21........ Aa2 AA+ 8,548
2,500 Philadelphia,
Pennsylvania,
Industrial Development
Authority, IDR
Refunding, (Ashland Oil
Inc. Project) Series
1993,
5.700% 06/01/05........ Baa1 NR 2,496
9,000 Philadelphia,
Pennsylvania, Water and
Wastewater Systems
Revenue, Series 1993,
(FGIC Insured),
5.500% 06/15/03........ Aaa AAA 9,179
--------
32,109
--------
RHODE ISLAND -- 0.4%
800 Pawtucket, Rhode Island,
GO, Series 1994, (FGIC
Insured),
5.250% 04/15/01........ Aaa AAA 808
55 Rhode Island State, GO,
Series 1992A,
5.400% 08/01/06........ Aa3 AA- 56
2,945 Rhode Island State, GO,
Series 1992A,
Prerefunded 08/01/01 @
102,
5.400% 08/01/06........ Aa3 AA- 3,035
--------
3,899
--------
SOUTH CAROLINA -- 3.6%
13,400 Georgetown County, South
Carolina, PCR
Refunding,
(International Paper
Company Project) Series
1999A,
5.125% 02/01/12........ A3 BBB+ 12,335
3,210 Greenville Hospital
Systems of South
Carolina, Hospital
Facilities Revenue,
Series 1996B,
(GTY-AGMT),
5.500% 05/01/08........ Aa3 AA 3,245
5,160 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue,
Series 1996B, (FGIC
Insured),
6.000% 01/01/07........ Aaa AAA 5,413
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE> 107
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$ 2,580 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue,
Unrefunded Balance,
Series 1991A, (FGIC
Insured),
6.125% 01/01/03........ Aaa AAA $ 2,660
3,665 Richland County, South
Carolina, Solid Waste
Disposal Facilities
Revenue, (Union Camp
Corporation Project)
Series 1992A, AMT,
6.750% 05/01/22........ A3 BBB+ 3,731
4,890 York County, South
Carolina, Exempt
Facilities IDR,
(Hoechst Celanese
Corporation Project)
Series 1994, AMT,
5.700% 01/01/24........ Baa2 BBB 4,323
--------
31,707
--------
SOUTH DAKOTA -- 1.2%
11,000 Education Loans Inc.,
South Dakota, Student
Loan Revenue, Series
1998, AMT, (GTD STD
LNS),
4.950% 06/01/10........ Aaa NR 10,515
--------
TENNESSEE -- 4.5%
10,000 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
System Inc. Project)
Series 1999,
5.625% 04/01/29........ Baa1 NR 8,384
6,000 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
Systems Inc. Project)
Series 1999,
5.750% 04/01/19........ Baa1 NR 5,348
6,270 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.400% 12/01/22........ Baa2 BBB 6,425
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 1,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College
Project) Series 1996,
(AMBAC Insured),
6.000% 12/01/08........ Aaa AAA $ 1,066
8,000 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue, (St.
Jude's Childrens
Research Project)
Series 1999,
5.375% 07/01/24........ NR AA 7,326
5,555 Tennessee State, GO,
Series 1995A,
7.000% 03/01/05........ Aaa AAA 6,064
1,190 Tennessee State, Housing
Development Agency,
Revenue, Series 1998,
AMT,
4.950% 07/01/10........ Aa2 AA 1,148
4,000 Tennessee, Gas Revenue,
(Tennergy Corporation
Project) Series 1999,
(MBIA Insured),
5.000% 06/01/05........ Aaa AAA 3,914
--------
39,675
--------
TEXAS -- 12.0%
2,175 Aldine, Texas,
Independent School
District, GO Refunding,
Series 1997, (PSF-GTD
Insured),
5.450%+ 02/15/07....... Aaa AAA 1,515
2,500 Arlington, Texas, Water
and Wastewater Systems
Revenue, Series 1999,
4.000% 06/01/07........ Aa3 AA- 2,287
2,555 Austin, Texas, Utilities
Systems Revenue, Series
1977-2, (Escrowed to
Maturity),
5.600% 10/01/03........ Aaa AAA 2,619
5,000 Austin, Texas, Utilities
Systems Revenue, Series
1986A, Prerefunded
05/15/01 @ 100,
8.000% 11/15/16........ Aaa AAA 5,198
975 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior Lien,
Series 1994A-2, AMT,
(GTD STD LNS),
6.050% 06/01/03........ Aaa NR 995
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE> 108
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 2,575 Carrollton, Texas,
Farmers Branch
Independent School
District, GO, Series
1996, (PSF-GTD
Insured),
5.700% 02/15/17........ Aaa AAA $ 2,591
3,150 Guadalupe Blanco River
Authority, Texas, Sewer
and Solid Waste
Disposal Facility,
Revenue, (EI duPont de
Nemours and Company
Project) Series 1999,
5.500% 05/01/29........ Aa3 AA- 2,906
2,350 Harris County, Texas,
Health Facilities
Development Authority,
Hospital Revenue
Refunding, (Texas
Childrens Hospital
Project) Series 1995,
(MBIA Insured, Escrowed
to Maturity),
6.000% 10/01/05........ Aaa AAA 2,470
5,000 Harris County, Texas,
Health Facilities
Development Authority,
Revenue, Series 1999A,
5.375% 07/01/19........ Aaa AAA 4,738
7,000 Houston, Texas, Airport
System Revenue, Sub-
Lien, Series 1998B,
AMT, (FGIC Insured),
5.250% 07/01/12........ Aaa AAA 6,839
7,000 Houston, Texas, Water and
Sewer Systems Revenue
Refunding, Junior Lien,
Series 1997D, (FGIC
Insured),
5.000% 12/01/25........ Aaa AAA 6,155
2,500 Houston, Texas,
Waterworks and Sewer
Systems Revenue, Junior
Lien, Series 1992A,
(MBIA Insured),
Prerefunded 12/01/02 @
102,
5.800% 12/01/04........ Aaa AAA 2,612
1,500 Irving, Texas,
Independent School
District, GO Refunding,
Series 1994, (PSF-GTD
Insured),
5.450%+ 02/15/02....... Aaa AAA 1,368
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,000 Lower Neches Valley,
Texas, Industrial
Development Corporation
Authority, Revenue
Refunding, (Mobil Oil
Refunding Corporation
Project) Series 1998,
5.550% 03/01/33........ Aaa AAA $ 2,763
5,000 North Central, Texas,
Health Facilities
Development
Corporation, Health
Facilities Revenue,
(Presbyterian
Healthcare Residential
Project) Series 1996B,
(MBIA Insured),
5.500% 06/01/16........ Aaa AAA 5,010
5,210 North Central, Texas,
Health Facilities
Development
Corporation, Revenue
Refunding, (Baylor
Health Care Systems
Project) Series 1995,
5.500% 05/15/13........ Aa3 AA- 5,110
5,000 Red River Authority,
Texas, PCR Refunding,
Series 1991, (AMBAC
Insured),
5.200% 07/01/11........ Aaa AAA 4,933
415 San Antonio, Texas, Water
Revenue Refunding,
Series 1992, (FGIC
Insured),
5.900% 05/15/00........ Aaa AAA 416
2,000 Southwest Higher
Education Authority,
Inc., Higher Education
Revenue Refunding,
(Southern Methodist
University Project)
Series 1995, (FSA
Insured),
5.125% 10/01/16........ Aaa AAA 1,891
4,805 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue, (Texas
Health Resources
Systems Project) Series
1997A, (MBIA Insured),
5.750% 02/15/10........ Aaa AAA 4,973
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE> 109
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 5,000 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue, (Texas
Health Resources
Systems Project) Series
1997A, (MBIA Insured),
5.250% 02/15/17........ Aaa AAA $ 4,711
3,200 Texas A&M University,
Financing Systems
Revenue, Series 1995,
5.950% 05/15/05........ Aa2 AA+ 3,345
6,260 Texas State, GO, Series
1999,
5.250% 08/01/20........ Aa1 AA 5,909
900 Texas State, Public
Finance Authority, GO,
Series 1994B,
5.000% 10/01/01........ Aa1 AA 906
4,000 Texas State,
Superconducting, GO
Refunding, Series
1992C,
5.350% 04/01/01........ Aa1 AA 4,043
1,000 Texas State, Veterans
Housing Assistance, GO,
Series 1994B-4, AMT,
6.100% 12/01/06........ Aa1 AA 1,031
4,790 Texas, Municipal Power
Agency, Revenue,
Refunded Balance,
Series 1992, (MBIA
Insured), Prerefunded
09/01/02 @ 100,
5.750% 09/01/12........ Aaa AAA 4,903
7,210 Texas, Municipal Power
Agency, Revenue, Series
1992, (MBIA Insured),
Prerefunded 09/01/02 @
100,
5.750% 09/01/12........ Aaa AAA 7,380
4,500 Travis County, Texas,
Health Facilities
Development
Corporation, Revenue,
(Ascension Health
Credit Project) Series
1999A, (AMBAC Insured),
5.875% 11/15/24........ Aaa AAA 4,462
300 University of Texas,
Permanent University
Fund, Revenue
Refunding, Series 1991,
Prerefunded 07/01/01 @
102,
6.700% 07/01/05........ Aaa AAA 314
--------
104,393
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH -- 0.9%
$ 2,145 Cache County, Utah,
School District, Utah
School Board Guaranty
Program, GO Refunding,
Series 1997, (SCH BD
GTY),
5.500% 06/15/07........ NR AAA $ 2,209
300 Davis County, Utah,
School District, GO,
Series 1991, (FGIC
Insured), Prerefunded
12/01/01 @ 100,
6.450% 06/01/02........ Aaa AAA 309
5,000 Utah, Intermountain Power
Agency, Power Supply
Revenue Refunding,
Series 1993C,
5.000% 07/01/05........ A1 A+ 4,975
--------
7,493
--------
VIRGINIA -- 5.3%
6,170 Chesapeake, Virginia, GO
Refunding, Series 1993,
5.000% 12/01/03........ Aa3 AA 6,235
4,000 Chesterfield County,
Virginia, Improvement
GO Refunding, Series
1991,
6.250% 07/15/05........ Aaa AAA 4,161
6,000 Covington-Allegheny
County, Virginia,
Industrial Development
Authority, PCR
Refunding, (Westvaco
Corporation Project)
Series 1994,
5.900% 03/01/05........ A2 A- 6,269
5,790 Fairfax County, Virginia,
GO Refunding, Series
1993C, (State Aid
Withholding),
5.000% 05/01/05........ Aaa AAA 5,834
1,500 Metropolitan Washington,
District of Columbia,
Airport Revenue, Series
1994A, AMT, (MBIA
Insured),
5.600% 10/01/06........ Aaa AAA 1,540
2,500 Newport News, Virginia,
GO Refunding, Series
1993B, (State Aid
Withholding),
5.400% 11/01/06........ Aa2 AA 2,560
3,000 Virginia Beach, Virginia,
GO Refunding, Series
1993,
5.100% 07/15/05........ Aa1 AA 3,037
1,100 Virginia State, Higher
Educational
Institutions, GO,
Series 1992C,
Prerefunded 06/01/02 @
100,
5.900% 06/01/05........ Aaa AAA 1,128
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE> 110
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 4,845 Virginia State, Housing
Development Authority,
Multi-Family Housing
Revenue, Series 1999B,
AMT,
5.200% 05/01/19........ Aa1 AA+ $ 4,347
1,500 Virginia State, Public
Facilities GO, Series
1993A,
5.400% 06/01/05........ Aaa AAA 1,539
7,000 Virginia State, Public
School Authority,
Revenue Refunding,
Series 1993B, (State
Aid Withholding),
5.250% 01/01/07........ Aa2 AA 7,103
2,600 Virginia, College
Building Authority,
Educational Facilities
Revenue Refunding,
(University of Richmond
Project) Series 1992,
5.625% 11/01/02........ NR AA 2,639
--------
46,392
--------
WASHINGTON -- 5.3%
2,500 King County, Washington,
GO Refunding, Series
1993C,
5.625% 06/01/02........ Aaa AA+ 2,546
510 King County, Washington,
GO, Unrefunded Balance,
Series 1993A,
5.250% 12/01/01........ Aa1 AA+ 515
1,195 King County, Washington,
School District Number
415, GO, Series 1996,
(FSA Insured),
5.100% 06/01/04........ Aaa AAA 1,204
3,000 Pierce County,
Washington, School
District Number 003, GO
Refunding, Series 1996,
(FGIC Insured),
5.000% 12/01/03........ Aaa AAA 3,019
1,400 Seattle, Washington,
Water Systems Revenue
Refunding, Series 1993,
5.500% 06/01/18........ Aa2 AA 1,375
1,500 Snohomish County,
Washington, School
District No. 103, GO,
Series 1996, (FGIC
Insured),
5.150% 06/01/05........ Aaa AAA 1,513
2,195 Tacoma, Washington,
Electric Systems
Revenue, Series 1992,
(AMBAC Insured),
5.900% 01/01/05........ Aaa AAA 2,252
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$ 305 Tacoma, Washington,
Electric Systems
Revenue, Series 1992,
(AMBAC Insured),
Prerefunded 01/01/02 @
102,
5.900% 01/01/05........ Aaa AAA $ 317
800 Tacoma, Washington,
Electrical Systems
Revenue Refunding,
Series 1994, (FGIC
Insured),
5.500% 01/01/01........ Aaa AAA 808
1,000 Tacoma, Washington, GO,
Series 1992A,
5.750% 07/01/02........ A1 A+ 1,020
3,500 Washington State, GO
Refunding, Series
1991R-92A,
6.400% 09/01/03........ Aa1 AA+ 3,614
900 Washington State, GO
Refunding, Series
1992R-92C,
5.600% 09/01/01........ Aa1 AA+ 913
10,000 Washington State, GO
Refunding, Series
1993R-93B,
5.125% 10/01/04........ Aa1 AA+ 10,094
1,000 Washington State, GO,
Series 1990B,
6.550% 08/01/00........ Aa1 AA+ 1,008
500 Washington State, GO,
Series 1991B,
Prerefunded 06/01/01 @
100,
6.300% 06/01/02........ Aa1 AA+ 511
900 Washington State, GO,
Series 1992-93A,
5.250% 10/01/00........ Aa1 AA+ 905
7,500 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1990C, (FGIC
Insured),
7.000% 07/01/01........ Aaa AAA 7,707
2,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1991A,
6.500% 07/01/03........ Aa AA 2,076
1,150 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1993A,
5.800% 07/01/07........ Aa1 AA- 1,190
3,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1993B, (FSA
Insured),
5.400% 07/01/05........ Aaa AAA 3,045
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE> 111
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$ 1,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1996A, (AMBAC
Insured),
5.500% 07/01/04........ Aaa AAA $ 1,019
--------
46,651
--------
WEST VIRGINIA -- 0.2%
2,000 West Virginia State,
Building Commission,
Lease Revenue, (West
Virginia Regional Jail
and Correction Project)
Series 1990A, (MBIA
Insured), Prerefunded
07/01/00 @ 102,
6.700% 07/01/02........ Aaa AAA 2,052
--------
WISCONSIN -- 3.4%
5,000 Kaukauna, Wisconsin, PCR,
Refunding,
(International Paper
Project) Series 1997A,
5.150% 07/01/06........ A3 BBB+ 4,865
300 Milwaukee, Wisconsin, GO,
Series 1991BZ,
Prerefunded 06/15/01 @
100,
6.375% 06/15/03........ Aa1 AA+ 307
5,000 Milwaukee, Wisconsin,
Metropolitan Sewer
District, GO, Series
1990A,
6.700% 10/01/01........ Aa1 NR 5,156
3,070 Sun Prairie, Wisconsin,
Area School District,
GO, Promissory Notes,
Series 1996, (FGIC
Insured, Escrowed to
Maturity),
5.500% 04/01/03........ Aaa AAA 3,132
900 Wisconsin State, GO
Refunding, Series
1993-1,
5.100% 11/01/01........ Aa2 AA 908
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WISCONSIN -- (CONTINUED)
$ 4,745 Wisconsin State, GO,
Series 1996A,
5.000% 05/01/16........ Aa2 AA $ 4,436
8,000 Wisconsin State,
Petroleum Revenue,
Series 2000A,
5.750% 07/01/08........ Aa3 AA- 8,313
2,735 Wisconsin, Housing and
Economic Development
Authority, Revenue,
Series 1997G,
5.350% 03/01/12........ Aa3 AA 2,697
--------
29,814
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $859,622)........................ 856,776
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.6%
(Cost $5,350)
5,350 Nations Municipal Reserves#........... 5,350
--------
TOTAL INVESTMENTS
(Cost $864,972*)............. 98.8% 862,126
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 1.2%
Receivable for Fund shares sold....... $ 1,505
Interest receivable................... 14,692
Payable for Fund shares redeemed...... (1,369)
Investment advisory fee payable....... (175)
Administration fee payable............ (148)
Shareholder servicing and
distribution fees payable........... (7)
Distributions payable................. (3,458)
Accrued Trustees'/Directors' fees
and expenses........................ (22)
Accrued expenses and other
liabilities......................... (124)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... 10,894
--------
NET ASSETS..................... 100.0% $873,020
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE> 112
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 792
Accumulated net realized loss on
investments sold.................... (2,425)
Net unrealized depreciation of
investments......................... (2,846)
Paid-in capital....................... 877,499
--------
NET ASSETS............................ $873,020
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($849,966,171 / 86,909,310 shares
outstanding)........................ $9.78
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($19,781,858 / 2,022,603
shares outstanding)................. $9.78
=====
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.11
INVESTOR B SHARES:
Net asset value and offering price per
share** ($2,732,577 / 279,407 shares
outstanding)........................ $9.78
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($539,407 / 55,128 shares
outstanding)........................ $9.78
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized depreciation of $2,846 on
investment securities was comprised of gross appreciation of $13,664 and
gross depreciation of $16,510 for Federal income tax purposes. At March 31,
2000, the aggregate cost of securities for Federal income tax purposes was
$864,972.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
FGIC 11.06%
Nations Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 10.58%
Hospital Revenue 12.76%
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE> 113
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.7%
ALABAMA -- 4.6%
$ 2,000 Birmingham, Alabama, GO
Refunding, Series
1992B,
6.250% 04/01/12........ Aa3 AA $ 2,082
3,000 Butler County, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(James River
Corporation of Virginia
Project) Series 1994,
AMT,
8.000% 09/01/28........ NR BBB 3,191
7,210 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue
Refunding, (Champion
International
Corporation Project)
Series 1997, AMT,
5.750% 11/01/27........ Baa1 NR 6,353
2,400 Daphne, Alabama, Special
Care Facilities
Financing Authority,
Revenue, (Presbyterian
Retirement Corporation
Project) Series 1988A,
Prerefunded 08/15/01 @
100,
7.300% 08/15/18........ NR NR 2,482
3,600 Jefferson County,
Alabama, Sewer Revenue
Refunding, Series
1997A,
(FGIC Insured),
5.625% 02/01/18........ Aaa AAA 3,590
2,000 Jefferson County,
Alabama, Sewer Revenue
Refunding, Series
1997A, (FGIC Insured),
5.625% 02/01/22........ Aaa AAA 1,964
1,000 Mcintosh, Alabama,
Industrial Development
Board, Environmental
Improvement Revenue,
Series 1998C,
5.375% 06/01/28........ A2 AA- 873
1,000 Morgan County-Decatur,
Alabama, Health Care
Authority, Hospital
Revenue Refunding,
(Decatur General
Hospital Project)
Series 1994, (CONNIE
LEE Insured),
6.250% 03/01/13........ NR AAA 1,038
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ALABAMA -- (CONTINUED)
$ 7,000 Phoenix County, Alabama,
Industrial Development
Board, Environmental
Import Revenue
Refunding, (Mead Coated
Board Project) Series
1998B, (GTY-AGMT),
5.250% 04/01/28........ A3 A- $ 6,133
--------
27,706
--------
ALASKA -- 2.4%
1,500 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1997A, AMT, (AMBAC
Insured),
5.250% 07/01/07........ Aaa AAA 1,490
2,500 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1999A, AMT, (AMBAC
Insured),
4.900% 07/01/08........ Aaa AAA 2,416
1,000 Anchorage, Alaska,
Electric Utilities
Revenue Refunding,
Senior Lien, Series
1993, (MBIA Insured),
8.000% 12/01/09........ Aaa AAA 1,207
7,000 Anchorage, Alaska,
Electric Utilities
Revenue, Senior Lien,
Series 1996B, (MBIA
Insured),
5.500% 02/01/26........ Aaa AAA 6,595
2,250 Anchorage, Alaska,
Telephone Utilities
Revenue Refunding,
Series 1994A, (AMBAC
Insured),
4.500% 12/01/02........ Aaa AAA 2,239
1,000 North Slope Borough,
Alaska, Capital
Appreciation GO, Series
1995A, (MBIA Insured),
5.750%+ 06/30/06....... Aaa AAA 720
--------
14,667
--------
ARIZONA -- 1.5%
3,000 Maricopa County, Arizona,
School District Number
006, GO, (Projects of
1996) Series 1998,
(FGIC Insured),
4.000% 07/01/10........ Aaa AAA 2,668
1,000 Maricopa County, Arizona,
Unified School District
Number 48, GO
Refunding, Series
1991B,
6.300% 07/01/04........ Aa2 AA 1,059
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE> 114
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ARIZONA -- (CONTINUED)
$ 1,300 Maricopa County, Arizona,
Unified School District
Number 48, GO
Refunding, Series
1993B,
4.600% 07/01/11........ Aa2 AA $ 1,228
2,000 Salt River Project,
Arizona, Agricultural
Improvement Revenue,
Series 1992C,
6.250% 01/01/19........ Aa2 AA 2,044
5,000 Tucson and Pima County,
Arizona, Industrial
Development Authority,
Single-Family Mortgage
Revenue, Series 1983A,
5.800%+ 12/01/14....... Aaa AAA 2,218
--------
9,217
--------
ARKANSAS -- 0.8%
1,300 Arkansas State,
Development Finance
Authority, Revolving
Loan Fund, Wastewater
Systems Revenue, Series
1996A,
5.700% 12/01/12........ NR AA 1,341
3,425 Blytheville, Arkansas,
Solid Waste Recycling
and Sewer Treatment
Revenue, (Nucor
Corporation Project)
Series 1993, AMT,
6.375% 01/01/23........ A1 AA- 3,476
--------
4,817
--------
CALIFORNIA -- 1.4%
5,000 ABAG Finance Authority
for NonProfit
Corporations,
California,
Multi-Family Revenue
Refunding, Series
2000A, (GTY-AGMT),
Mandatory Put 08/15/08
@ 100,
6.400% 08/15/30........ Baa2 BBB 5,070
2,000 ABAG Finance Authority
for NonProfit
Corporations,
California,
Multi-Family Revenue
Refunding, Series
2000B, (GTY-AGMT),
Mandatory Put 08/15/08
@ 100,
6.250% 08/15/30........ Baa2 BBB 2,028
1,000 California State, GO,
Series 1990,
7.000% 08/01/04........ Aa3 AA- 1,097
--------
8,195
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
COLORADO -- 0.7%
$ 1,500 Arapahoe County,
Colorado, Capital
Improvement
Transportation Federal
Highway Revenue, Series
1986E-470, Prerefunded
08/31/05 @ 103,
6.900% 08/31/15........ Aaa NR $ 1,677
2,500 Douglas County, Colorado,
Sales and Use Tax
Revenue, Series 1996,
(MBIA Insured),
5.500% 10/15/11........ Aaa AAA 2,542
--------
4,219
--------
CONNECTICUT -- 1.5%
1,000 Connecticut State, GO,
Series 1996A,
5.300% 05/15/10........ Aa3 AA 1,018
5,000 Connecticut State, Health
and Educational
Facilities Authority,
Revenue, (Eastern
Connecticut Health
Network Project) Series
2000A,
6.000% 07/01/25........ NR AA 4,942
1,590 Connecticut State,
Housing Finance
Authority, Revenue,
(Housing Mortgage
Finance Program) Series
1992B,
6.700% 11/15/12........ Aa2 AA 1,666
1,070 Connecticut State,
Housing Finance
Authority, Revenue,
(Housing Mortgage
Finance Program) Series
1994A,
6.100% 05/15/13........ Aa2 AA 1,079
--------
8,705
--------
DISTRICT OF COLUMBIA
-- 2.9%
7,000 District of Columbia,
Hospital Revenue
Refunding, (Medlantic
Healthcare Group
Project) Series 1997A,
(MBIA Insured),
Prerefunded 08/15/07 @
102,
5.375% 08/15/15........ Aaa AAA 6,950
3,905 District of Columbia,
Revenue Refunding,
(Howard University
Project) Series 1996,
(MBIA Insured),
5.750% 10/01/12........ Aaa AAA 4,013
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE> 115
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA
-- (CONTINUED)
$ 6,500 District of Columbia,
Revenue, (Carnegie
Endowment Project)
Series 1996,
5.750% 11/15/26........ Aa3 NR $ 6,286
--------
17,249
--------
FLORIDA -- 1.4%
1,735 Florida State, Board of
Education, Capital
Outlay GO, Unrefunded
Balance, Series 1985,
9.125% 06/01/14........ Aa2 AA+ 2,312
7,000 Orange County, Florida,
Tourist Development,
Tax Revenue Refunding,
Series 1998A, (AMBAC
Insured),
4.750% 10/01/24........ Aaa AAA 6,028
--------
8,340
--------
GEORGIA -- 9.2%
5,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series
2000A, (FGIC Insured),
5.600% 01/01/30(a)..... Aaa AAA 4,845
2,000 Coweta County, Georgia,
School System GO,
Series 1992,
Prerefunded 08/01/02 @
102,
6.300% 08/01/11........ A1 A 2,104
1,000 DeKalb County, Georgia,
School District GO,
Series 1993A,
6.250% 07/01/09........ Aa2 AA 1,087
3,000 Effingham County,
Georgia, Development
Authority, Solid Waste
Disposal Revenue, (Fort
James Corporation
Project) Series 1998,
AMT,
5.625% 07/01/18........ Baa2 BBB- 2,677
4,750 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Josephs Hospital
Project) Series 1994,
5.500% 10/01/18........ Aaa A 4,702
3,000 Georgia State, GO, Series
1992B,
6.250% 03/01/11........ Aaa AAA 3,312
3,000 Georgia State, GO, Series
1996B,
6.250% 04/01/07........ Aaa AAA 3,230
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 6,445 Georgia State, GO, Series
1998B,
5.500% 07/01/10........ Aaa AAA $ 6,680
10,000 Georgia State, Housing
and Finance Authority,
Single-Family Mortgage
Revenue, Series
1999B-2,
6.100% 06/01/31........ NR AAA 10,025
1,650... Gwinnett County, Georgia,
Water and Sewer
Certificates of
Participation, Series
1991,
8.600% 08/01/03........ Aaa AAA 1,840
1,000 Metropolitan Atlanta,
Rapid Transit Authority
of Georgia, Revenue
Refunding, Series
1992P, (AMBAC Insured),
6.000% 07/01/04........ Aaa AAA 1,044
1,000 Metropolitan Atlanta,
Rapid Transit Authority
of Georgia, Revenue
Refunding, Series
1992P, (AMBAC Insured),
5.100% 07/01/05........ Aaa AAA 1,054
2,000 Metropolitan Atlanta,
Rapid Transit Authority
of Georgia, Revenue
Refunding, Series
1992P, (AMBAC Insured),
6.250% 07/01/20........ Aaa AAA 2,148
2,000 Monroe County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation Project)
Series 1992A,
6.800% 01/01/11........ A3 A 2,215
3,000 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue Refunding,
(Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @
102,
7.000% 01/01/23........ Ba1 BB 3,215
2,000 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue, (St. Joseph's
Hospital Project)
Series 1993,
Prerefunded 07/01/03 @
102,
6.125% 07/01/12........ A3 NR 2,109
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 116
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 2,690 Union County, Georgia,
Housing Authority,
Multi-Family Housing
Revenue Refunding,
(Hidden Lake Apartments
Ltd. Project) Series
1994A, (FHA/FNMA COLL),
7.125% 12/01/25........ Aaa NR $ 2,816
--------
55,103
--------
HAWAII -- 1.4%
1,900 Hawaii State, Department
of Budget and Finance,
Special Purpose
Mortgage Revenue,
(Hawaiian Electric
Company and
Subsidiaries Project)
Series 1992, AMT, (MBIA
Insured),
6.550% 12/01/22........ Aaa AAA 1,948
3,000 Hawaii State, GO, Series
1997CN, (FGIC Insured),
6.250% 03/01/04........ Aaa AAA 3,143
1,180 Honolulu City and County,
Hawaii, GO Refunding,
Series 1993B,
8.000% 10/01/10........ Aa3 AA- 1,435
2,100 Maui County, Hawaii, GO
Refunding, Series 1993,
(FGIC Insured),
5.000% 09/01/03........ Aaa AAA 2,113
--------
8,639
--------
ILLINOIS -- 5.9%
5,735 Chicago, Illinois, O'Hare
International Airport,
Special Facilities
Revenue Refunding,
(United AirLines
Project) Series 1999B,
AMT,
5.200% 04/01/11........ Baa2 BB+ 5,187
3,385 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Capital Improvement GO,
Series 1991,
6.900% 01/01/07........ Aa1 AA 3,734
3,000 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding,
Second Lien, Series
1993C, (MBIA Insured),
5.000% 01/01/18........ Aaa AAA 2,730
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 2,640 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding,
Senior Lien, Series
1993A,
5.000% 01/01/16........ A2 A+ $ 2,403
1,500 Chicago, Illinois, O'Hare
International Airport,
Special Facilities
Revenue Refunding,
(American Airlines Inc.
Project) Series 1994,
(GTY-AGMT),
8.200% 12/01/24........ Baa1 BBB- 1,640
2,000 Chicago, Illinois, Park
District, GO, Series
1996, (MBIA Insured),
5.500% 01/01/16........ Aaa AAA 1,985
1,000 Cook County, Illinois,
Forest Preserve
District, Zoo GO,
Series 1996, (MBIA
Insured),
5.800% 11/01/16........ Aaa AAA 1,016
2,000 Cook County, Illinois,
GO, Series 1996, (FGIC
Insured), Prerefunded
11/15/06 @ 101,
5.900% 11/15/16........ Aaa AAA 2,122
1,765 Glendale Heights,
Illinois, Hospital
Revenue Refunding,
(Glendale Heights
Project) Series 1985B,
7.100% 12/01/15........ Aaa AAA 1,984
2,000 Illinois State, GO,
Series 1995, (MBIA
Insured),
6.000% 02/01/16........ Aaa AAA 2,053
1,500 Illinois State, Sales Tax
Revenue, Series 1994V,
6.375% 06/15/17........ Aa2 AAA 1,575
4,000 Illinois, Development
Finance Authority, PCR
Refunding,
(Commonwealth Edison
Company Project) Series
1991,
7.250% 06/01/11........ Baa1 BBB+ 4,125
1,000 Illinois, Development
Finance Authority, PCR
Refunding,
(Commonwealth Edison
Company Project) Series
1994D, (AMBAC Insured),
6.750% 03/01/15........ Aaa AAA 1,068
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 117
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 1,800 Illinois, Educational
Facilities Authority,
Revenue, (Northwestern
University Project)
Series 1993,
5.375% 12/01/21........ Aa1 AA+ $ 1,719
2,680 Southern Illinois,
Capital Appreciation
University Revenue,
(Housing and Auxiliary
Facilities Systems
Program) Series 1997,
(MBIA Insured),
5.100%+ 04/01/06....... Aaa AAA 1,960
--------
35,301
--------
INDIANA -- 2.6%
2,500 Franklin, Indiana,
Economic Development
Revenue Refunding,
(Hoover Universal, Inc.
Project) Series 1994,
(GTY-AGMT),
6.100% 12/01/04........ A2 A- 2,596
1,000 Hamilton/Southeastern
Indiana, North Delaware
School Building
Corporation, First
Mortgage Revenue,
Series 1996, (AMBAC
Insured, State Aid
Withholding),
5.000% 07/15/07........ Aaa AAA 995
1,000 Hamilton/Southeastern
Indiana, North Delaware
School Building
Corporation, First
Mortgage Revenue,
Series 1996, (AMBAC
Insured, State Aid
Withholding),
5.100% 07/15/09........ Aaa AAA 994
1,000 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Clarian
Health Partners, Inc.
Project) Series 1996A,
5.500% 02/15/16........ Aa3 AA 957
5,000 Indianapolis, Indiana,
Airport Authority,
Special Facilities
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1998, AMT,
5.500% 05/01/29........ Baa2 BBB 4,228
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA -- (CONTINUED)
$ 2,000 Indianapolis, Indiana,
Airport Authority,
Special Facilities
Revenue, (Federal
Express Corporation
Project) Series 1994,
AMT,
7.100% 01/15/17........ Baa2 BBB $ 2,077
2,000 St. Joseph County,
Indiana, Educational
Facilities Revenue,
(University of Notre
Dame - Du Lac Project)
Series 1996,
5.500% 03/01/26........ Aaa NR 1,897
2,000 St. Joseph County,
Indiana, Educational
Facilities Revenue,
(University of Notre
Dame - Du Lac Project)
Series 1997,
5.250% 03/01/21........ Aaa NR 1,856
--------
15,600
--------
IOWA -- 0.4%
2,750 Iowa, Student Loan
Liquidity Corporation,
Student Loan Revenue
Refunding, Series
1998J, AMT, (AMBAC
Insured),
4.800% 06/01/09........ Aaa AAA 2,609
--------
KANSAS -- 0.7%
2,000 Kansas City, Kansas,
Utility System
Improvement Revenue
Refunding, Series 1994,
(FGIC Insured),
6.250% 09/01/14........ Aaa AAA 2,110
2,000 Kansas State, Department
of Transportation,
Highway Revenue, Series
1992A, Prerefunded
09/01/02 @ 102,
6.000% 09/01/07........ Aa2 AA+ 2,094
--------
4,204
--------
KENTUCKY -- 0.2%
1,000 Kentucky State, Turnpike
Authority, Economic
Development Revenue
Refunding,
(Revitalization
Project) Series 1993,
(AMBAC Insured),
5.500% 07/01/08........ Aaa AAA 1,031
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE> 118
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MAINE -- 0.2%
$ 1,000 Maine, Health and Higher
Educational Facilities
Authority, Revenue,
Series 1996B, (State
Aid Withholding, AMBAC
Insured),
5.500% 07/01/16........ Aaa AAA $ 983
--------
MARYLAND -- 0.5%
3,000 Maryland State, Economic
Development
Corporation, Student
Housing Revenue,
(Salisbury Collegiate
Housing Project) Series
1999A,
6.000% 06/01/30........ Baa3 NR 2,774
--------
MASSACHUSETTS -- 1.3%
2,885 Massachusetts Bay,
Transportation
Authority, Revenue,
(General Transportation
Systems Project) Series
1995A, Prerefunded
03/01/05 @ 102,
5.750% 03/01/18........ Aa2 AA- 3,036
2,500 Massachusetts State,
Consolidated Loan GO,
Series 1995A, (MBIA
Insured), Prerefunded
02/01/05 @ 101,
5.750% 02/01/13........ Aaa AAA 2,613
2,000 Massachusetts State,
Consolidated Loan GO,
Series 1996B, (FGIC
Insured),
5.500% 06/01/10........ Aaa AAA 2,053
--------
7,702
--------
MICHIGAN -- 3.4%
1,670 Byron Center, Michigan,
Public Schools GO,
Series 1995, (MBIA
Insured), Prerefunded
05/01/05 @ 101,
5.970% 05/01/15........ Aaa AAA 1,763
1,000 Detroit, Michigan, GO
Refunding, Series
1995B,
6.375% 04/01/07........ Baa1 A- 1,051
1,250 Kalamazoo, Michigan, City
School District, GO
Refunding, Series 1996,
(FGIC Insured),
5.650% 05/01/14........ Aaa AAA 1,305
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN -- (CONTINUED)
$ 1,000 Lakeshore, Michigan,
Public Schools, GO,
Series 1995, (MBIA
Insured),
5.750% 05/01/15........ Aaa AAA $ 1,017
3,000 Michigan State,
Comprehensive
Transportation Revenue
Refunding, Series
1996A, (MBIA Insured),
5.250% 08/01/13........ Aaa AAA 2,969
1,435 Michigan State,
Environmental
Protection Program GO,
Series 1992,
6.250% 11/01/12........ Aa1 AA+ 1,561
7,880 Michigan State, Hospital
Finance Authority
Revenue, (Henry Ford
Health Systems Project)
Series 1999A,
6.000% 11/15/19........ A1 AA- 7,710
2,000 Michigan State, Hospital
Finance Authority,
Hospital Revenue,
(Holland Community
Hospital Project)
Series 1996, (AMBAC
Insured),
5.625% 01/01/28........ Aaa AAA 1,908
1,000 Michigan State, Trunk
Line Revenue, Series
1994A, (FGIC-TCRS
Insured), Prerefunded
11/15/04 @ 102,
5.625% 11/15/14........ Aaa AAA 1,046
--------
20,330
--------
MISSISSIPPI -- 1.8%
5,000 Adams County,
Mississippi, PCR,
(International Paper
Company Project) Series
1994A,
5.500% 12/01/05........ A3 BBB+ 5,023
3,000 Lowndes County,
Mississippi, Solid
Waste Disposal PCR
Refunding,
(Weyerhaeuser Company
Project) Series 1992A,
6.800% 04/01/22........ A2 A 3,275
2,200 Mississippi, Hospital
Equipment and
Facilities Improvement
Authority, Revenue
Refunding, (North
Mississippi Health
Services Project)
Series 1993-1, (AMBAC
Insured),
5.400% 05/15/04........ Aaa AAA 2,230
--------
10,528
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
114
<PAGE> 119
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSOURI -- 2.0%
$ 1,000 Independence, Missouri,
School District, GO,
Series 1991,
6.250% 03/01/11........ A3 NR $ 1,095
1,000 Missouri State,
Environmental
Improvement and Energy
Resource Authority,
State Revolving Fund,
Water PCR, (Kansas City
Project) Series 1996A,
5.750% 01/01/16........ Aaa NR 1,014
4,000 Missouri State, Health
and Educational
Facilities Authority,
Revenue, (BJC Health
System Project) Series
1998,
5.000% 05/15/38........ Aa2 AA 3,262
1,365 Missouri State, Housing
Development Commission,
Single-Family Mortgage
Revenue, (Homeowner
Loan Project) Series
1995A, AMT,
(GNMA/FHA/VA COLL),
6.100% 09/01/14........ NR AAA 1,396
1,625 Missouri State, Water
Pollution Control GO,
Series 1995A,
5.600% 04/01/15........ Aaa AAA 1,658
3,500 Sikeston, Missouri,
Electrical Revenue
Refunding, Series 1992,
(MBIA Insured),
6.100% 06/01/07........ Aaa AAA 3,737
--------
12,162
--------
MONTANA -- 3.1%
8,000 Forsyth, Montana, PCR
Refunding, (Portland
General Electric
Company Project) Series
1998A, Mandatory Put
05/01/03 @ 100,
4.600% 05/01/33........ A3 A- 7,709
8,000 Lewis and Clark County,
Montana, Environmental
Facilities Revenue,
(Asarco, Inc. Project)
Series 1998, AMT,
5.850% 10/01/33........ B3 B+ 6,091
4,955 Montana State, Housing
Board Authority,
Single-Family Revenue,
Series 1999A-2, AMT,
5.750% 06/01/30........ Aa2 AA+ 4,742
--------
18,542
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEVADA -- 0.8%
$ 1,400 Clark County, Nevada,
Transportation
Improvement GO
Refunding, Series
1994A, (MBIA Insured),
Prerefunded 06/01/04 @
101,
6.000% 06/01/12........ Aaa AAA $ 1,471
1,000 Las Vegas and Clark
County, Nevada, Library
District GO, Series
1993, (FGIC Insured),
6.000% 02/01/12........ Aaa AAA 1,028
2,000 Nevada State, Municipal
Board GO, (Bank Project
Number 40-41) Series
1993A,
6.375% 12/01/17........ NR AAA 2,087
--------
4,586
--------
NEW HAMPSHIRE -- 0.4%
2,350 New Hampshire State,
Higher Education and
Health Facilities
Authority, Revenue,
(University Systems of
New Hampshire Project)
Series 1992, (MBIA
Insured),
5.750% 07/01/24........ Aaa AAA 2,326
--------
NEW JERSEY -- 0.7%
1,015 New Jersey State, Highway
Authority, Garden State
Parkway Generated
Revenue, Series 1971,
6.500% 01/01/11........ Aaa AAA 1,084
2,940 New Jersey, Financing
Authority, Health Care
Facilities Revenue,
(Riverwood Center Inc.
Project) Series 1991A,
(FSA Insured),
Prerefunded 07/01/01 @
102,
9.900% 07/01/21........ Aaa AAA 3,185
--------
4,269
--------
NEW MEXICO -- 0.3%
1,940 New Mexico, Mortgage
Finance Authority,
Single-Family Mortgage
Revenue, Series
1997C-2, AMT,
(GNMA/FNMA/FHLMC COLL),
6.050% 07/01/28........ Aaa NR 1,919
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE> 120
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK -- 2.2%
$ 2,000 Municipal Assistance
Corporation for New
York City, New York,
Revenue, Series 1996E,
5.200% 07/01/08........ Aa2 AA $ 2,014
2,000 New York City, New York,
Municipal Water Finance
Authority, Water and
Sewer Systems Revenue,
Series 1997B,
5.750% 06/15/29........ Aa3 A 1,956
1,000 New York State, Dormitory
Authority, Revenue,
(Canisius College
Project) Series 1995,
(CAPMAC SURETY BOND),
5.300% 07/01/08........ Aaa AAA 1,009
2,000 New York State, Energy
Research and
Development Authority,
Facilities Revenue
Refunding,
(Consolidated Edison
Company Project) Series
1995A,
6.100% 08/15/20........ A1 A+ 2,031
3,000 New York State, Local
Government Assistance
Corporation, Revenue,
Series 1991D,
Prerefunded 04/01/02 @
102,
6.750% 04/01/21........ Aaa AAA 3,175
3,000 New York State, Local
Government Assistance
Corporation, Revenue,
Series 1995A,
6.000% 04/01/16........ A3 AA- 3,081
--------
13,266
--------
NORTH CAROLINA -- 1.4%
2,425 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Revenue Refunding,
(Champion International
Corporation Project)
Series 1999,
6.400% 11/01/24........ Baa1 NR 2,395
1,950 North Carolina, Housing
Finance Agency, Multi-
Family Housing Revenue
Refunding, Series
1992B, (FHA COLL),
6.900% 07/01/24........ Aa2 AA 2,034
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA -- (CONTINUED)
$ 2,500 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Carolina
Medicorp, Inc. Project)
Series 1996,
5.250% 05/01/26........ A1 AA $ 2,242
2,000 University of North
Carolina, Chapel Hill,
University Revenue
Refunding, Series 1996,
5.000% 02/15/29........ Aa3 AA 1,717
--------
8,388
--------
OHIO -- 4.0%
1,500 Akron/Bath/Copley, Ohio,
Joint Township Hospital
District, Revenue,
(Summa Hospital) Series
1998A,
5.375% 11/15/18........ Baa1 NR 1,217
2,490 Dayton, Ohio, Special
Facilities Revenue
Refunding, (Air Freight
Corporation Project)
Series 1993F,
6.050% 10/01/09........ NR BBB 2,515
4,500 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight
Corporation Project)
Series 1988D, AMT,
6.200% 10/01/09........ NR BBB 4,548
1,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project) Series 1993,
Prerefunded 12/01/04 @
101,
6.125% 12/01/13........ NR NR 1,054
7,000 Montgomery County, Ohio,
Hospital Revenue,
Series 1999,
6.750% 04/01/22........ Baa1 BBB+ 6,598
9,155 Ohio State, Solid Waste
Disposal, Revenue, (USG
Corporation Project)
Series 1997, AMT,
5.600% 08/01/32........ NR BBB 7,850
--------
23,782
--------
OKLAHOMA -- 0.8%
2,770 Oklahoma State,
Industrial Authority,
Hospital Revenue,
(Deaconess Health Care
Project) Series 1997A,
5.750% 10/01/17........ Baa2 BBB 2,334
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
116
<PAGE> 121
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OKLAHOMA -- (CONTINUED)
$ 3,000 Oklahoma, Development
Finance Authority,
Revenue Refunding,
(Hillcrest Healthcare
Center Inc. Project)
Series 1999A,
5.000% 08/15/08........ Baa2 BBB $ 2,599
--------
4,933
--------
OREGON -- 0.9%
2,000 Chemeketa, Oregon,
Community College
District, GO, Series
1996, (FGIC Insured),
Prerefunded 06/01/06 @
100,
5.800% 06/01/12........ Aaa AAA 2,094
2,900 Portland, Oregon, Sewer
Systems Revenue, Series
1994A, Prerefunded
06/01/04 @ 101,
6.250% 06/01/15........ A1 AAA 3,075
--------
5,169
--------
PENNSYLVANIA -- 2.8%
3,000 Beaver County,
Pennsylvania,
Industrial Development
Authority, PCR
Refunding,
(Pennsylvania Power and
Light Company - Beaver
Valley Project) Series
1995, (AMBAC Insured),
6.000% 09/01/28........ Aaa AAA 3,007
3,480 Butler, Pennsylvania,
Area School District,
State Aid Withholding
GO, Series 1997, (FGIC
Insured), Prerefunded
11/15/07 @ 44.73,
4.510%+ 11/15/21....... Aaa NR 1,048
2,000 Lehigh County,
Pennsylvania,
Industrial Development
Authority, PCR
Refunding,
(Pennsylvania Power and
Light Company Project)
Series 1992A, (MBIA
Insured),
6.400% 11/01/21........ Aaa AAA 2,074
1,000 Monroeville,
Pennsylvania, Hospital
Authority, Hospital
Revenue Refunding,
(Forbes Health Systems
- Allegheny University
Medical Centers
Project) Series 1995,
5.750% 10/01/05........ Caa1 CCC 945
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
$ 1,725 Philadelphia,
Pennsylvania, Hospital
and Higher Education
Facilities Authority,
Hospital Revenue,
(Frankford Hospital
Project) Series 1993A,
6.000% 06/01/14........ A3 NR $ 1,752
3,125 Philadelphia,
Pennsylvania, Hospital
and Higher Education
Facilities Authority,
Hospital Revenue,
(Frankford Hospital
Project) Series 1993A,
6.000% 06/01/23........ A3 NR 3,147
4,800 Philadelphia,
Pennsylvania,
Industrial Development
Authority, IDR
Refunding, (Ashland Oil
Inc. Project) Series
1993,
5.700% 06/01/05........ Baa1 NR 4,792
--------
16,765
--------
RHODE ISLAND -- 0.5%
2,845 Rhode Island State,
Consolidated Capital
Development Loan GO,
Series 1996A, (MBIA
Insured),
5.600% 08/01/10........ Aaa AAA 2,931
--------
SOUTH CAROLINA -- 2.2%
5,000 Georgetown County, South
Carolina, Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A, (GTY-AGMT),
5.950% 03/15/14........ A3 BBB+ 5,042
2,000 South Carolina, State
Housing Finance and
Development Authority,
Revenue, (Homeownership
Mortgage Purchase
Project) Series 1994A,
6.375% 07/01/16........ AA AA 2,034
2,000 Spartanburg County, South
Carolina, Solid Waste
Disposal Facilities
Revenue, (BMW U.S.
Capital Corporation
Project) Series 1994,
AMT, (GTY-AGMT),
7.550% 11/01/24........ NR NR 2,124
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE> 122
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$ 4,700 York County, South
Carolina, Exempt
Facilities IDR,
(Hoechst Celanese
Corporation Project)
Series 1994, AMT,
5.700% 01/01/24........ Baa2 BBB $ 4,155
--------
13,355
--------
TENNESSEE -- 3.3%
6,000 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
Systems Inc. Project)
Series 1999,
5.750% 04/01/19........ Baa1 NR 5,348
3,000 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General
Motors Corporation -
Saturn Corporation
Project) Series 1994,
6.500% 09/01/24........ A2 A 3,012
2,750 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.400% 12/01/22........ Baa2 BBB 2,818
1,000 Memphis, Tennessee, GO
Refunding, Series 1996,
5.200% 11/01/10........ Aa2 AA 1,003
2,735 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1992, AMT,
6.750% 09/01/12........ Baa2 BBB 2,868
2,500 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Water and Sewer Revenue
Refunding, Series 1993,
(FGIC Insured),
5.200% 01/01/13........ Aaa AAA 2,479
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 2,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Water and Sewer Systems
Revenue Refunding,
Series 1996, (MBIA
Insured),
5.500% 01/01/14........ Aaa AAA $ 2,016
--------
19,544
--------
TEXAS -- 11.7%
4,000 Alliance Airport
Authority Inc., Texas,
Special Facilities
Revenue, (American
Corporation - American
Airlines Inc. Project)
Series 1991, AMT,
7.000% 12/01/11........ Baa1 BBB- 4,335
2,000 Arlington, Texas,
Independent School
District, GO, Series
1991, (PSFG Insured),
6.500% 08/15/03........ Aaa NR 2,104
2,470 Beaumont, Texas,
Independent School
District, GO, Series
1996, (PSF-GTD
Insured),
5.000% 02/15/17........ Aaa AAA 2,284
1,540 Bexar, Texas,
Metropolitan Water
District, Waterworks
Revenue, Series 1995,
(MBIA Insured),
Prerefunded 05/01/05 @
102,
6.000% 05/01/15........ Aaa AAA 1,639
2,070 Bexar, Texas,
Metropolitan Water
District, Waterworks
Revenue, Unrefunded
Balance, Series 1995,
(MBIA Insured),
6.000% 05/01/15........ Aaa AAA 2,140
1,000 Brazos River Authority,
Texas, Revenue
Refunding, (Houston
Light and Power Company
Project) Series 1992B,
(MBIA Insured),
6.375% 04/01/12........ Aaa AAA 1,050
4,615 Cedar Hill, Texas,
Independent School
District, Capital
Appreciation GO
Refunding, Series 2000,
(PSF-GTD),
6.650%+ 08/15/18....... NR AAA 1,434
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
118
<PAGE> 123
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,620 Cedar Hill, Texas,
Independent School
District, Capital
Appreciation GO
Refunding, Series 2000,
(PSF-GTD),
6.700%+ 08/15/19....... NR AAA $ 1,043
1,275 Cypress-Fairbanks, Texas,
Independent School
District GO, Series
1995 (PSF-GTD Insured),
Prerefunded 02/15/05 @
100,
5.750% 02/15/16........ Aaa AAA 1,321
4,805 Cypress-Fairbanks, Texas,
Independent School
District GO, Unrefunded
Balance, Series 1993A,
(PSFG Insured),
5.500% 02/15/11........ Aaa AAA 4,840
1,750 Dallas County, Texas, GO,
Series 1996,
5.250% 08/15/16........ Aaa AAA 1,705
1,075 Denton, Texas, Utility
Systems Revenue
Refunding, Series
1996A, (MBIA Insured),
5.700% 12/01/10........ Aaa AAA 1,107
3,290 Harris County, Texas, GO
Revenue Refunding,
(Toll Road Project) Sub
Lien, Series 1991,
6.750% 08/01/14........ Aa2 AA 3,436
3,335 Harris County, Texas,
Health Facilities
Development Authority,
Hospital Revenue,
(Memorial Herman
Hospital Systems
Project) Series 1998,
(FSA Insured),
5.500% 06/01/11........ Aaa AAA 3,362
4,000 Harris County, Texas,
Health Facilities
Development Authority,
Hospital Revenue,
(Memorial Hospital
Systems Project) Series
1997A, (MBIA Insured),
4.875% 06/01/05........ Aaa AAA 3,945
5,000 Houston, Texas, Airport
Systems Revenue, Series
1998B, AMT, (FGIC
Insured),
5.000% 07/01/16........ Aaa AAA 4,548
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 4,000 Lower Neches Valley
Authority, Texas,
Industrial Development
Corporation, Revenue
Refunding, (Mobil Oil
Refining Corporation
Project) Series 1997,
5.800% 05/01/22........ Aaa AAA $ 3,903
1,500 Lubbock, Texas, Health
Facilities Development
Corporation, Revenue,
(St. Joseph Health
Systems Project) Series
1993,
5.500% 07/01/14........ Aa AA 1,481
5,000 Lubbock, Texas, Health
Facilities Development
Revenue, (St. Joseph
Health Systems Project)
Series 1998,
5.000% 07/01/07........ Aa3 AA 4,890
2,000 North Central Texas,
Health Facilities
Development
Corporation, Hospital
Revenue, (Presbyterian
Healthcare Project)
Series 1991A,
6.625% 06/01/11........ Aaa NR 2,192
4,500 Port of Bay City
Authority, Texas,
Matagorda County
Revenue, (Hoechst
Celanese Corporation
Project), Series 1996,
6.500% 05/01/26........ Baa2 A+ 4,431
4,000 Red River Authority,
Texas, PCR Refunding,
Series 1991, (AMBAC
Insured),
5.200% 07/01/11........ Aaa AAA 3,946
2,000 Texas City, Texas, IDR,
Refunding, (Atlantic
Richfield Company
Project) Series 1990,
7.375% 10/01/20........ A2 A 2,361
5,000 Texas State, Department
of Housing and
Community Affairs,
Single-Family Mortgage
Revenue, Series
1997A-3, AMT,
(GNMA/FNMA COLL, MBIA
Insured),
5.800% 09/01/29........ Aaa AAA 4,737
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE> 124
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 2,000 Texas, Guadalupe Blanco
River Authority,
Revenue Refunding,
(Standard Oil Company
Project) Series 1983,
6.550% 05/01/13........ Aa3 AA+ $ 2,102
--------
70,336
--------
UTAH -- 2.2%
2,000 Emery County, Utah, PCR
Refunding, (Pacificorp
Project) Series 1993A,
(AMBAC Insured),
5.650% 11/01/23........ Aaa AAA 1,924
8,300 Murray City, Utah,
Hospital Revenue
Refunding, (IHC Health
Services, Inc. Project)
Series 1996, (MBIA
Insured),
5.000% 05/15/22........ Aaa AAA 7,262
2,000 Provo, Utah, Electric
Revenue, Series 1980,
10.125% 04/01/15....... Aaa AAA 2,672
1,300 Salt Lake City, Utah,
Water and Sewer
Revenue, Series 1994,
(AMBAC Insured),
Prerefunded 02/01/04 @
100,
6.100% 02/01/14........ Aaa AAA 1,356
--------
13,214
--------
VIRGINIA -- 3.2%
2,000 Covington-Allegheny
County, Virginia, IDR
Refunding, (Westvaco
Corporation Project)
Series 1994,
6.650% 09/01/18........ A2 A- 2,101
2,830 Fairfax County, Virginia,
Water Authority,
Revenue, Unrefunded
Balance, Series 1992,
6.000% 04/01/22........ Aa2 AA 2,895
1,670 Fairfax County, Virginia,
Water Authority, Water
Revenue Refunding,
Series 1992,
Prerefunded 04/01/07 @
102,
6.000% 04/01/22........ Aaa AAA 1,796
10,600 Fairfax County, Virginia,
Water Authority, Water
Revenue Refunding,
Series 1997,
5.000% 04/01/29........ Aa2 AA 9,335
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Norfolk, Virginia,
Capital Improvement GO,
Series 1997, (FGIC
Insured),
5.375% 06/01/15........ Aaa AAA $ 1,002
2,000 Virginia State, Resource
Authority, Systems
Revenue Refunding,
Series 1998,
5.000% 05/01/22........ NR AA 1,786
--------
18,915
--------
WASHINGTON -- 7.8%
5,000 Chelan County,
Washington, Development
Corporation PCR
Refunding, (Alcoa, Inc.
Project) Series 1995,
5.850% 12/01/31........ A1 A+ 4,861
2,310 Chelan County,
Washington, Public
Utilities District
Division III, Revenue,
Series 1997A, AMT,
Mandatory Put 07/01/09
@ 100,
5.600% 07/01/32........ Aa3 AA 2,211
2,480 Clark County, Washington,
Sewer Revenue, Series
1996, (MBIA Insured),
5.800% 12/01/11........ Aaa AAA 2,561
1,035 King County, Washington,
Library Systems GO,
Series 1992,
6.150% 12/01/10........ AA AA- 1,084
2,000 King County, Washington,
School District No.
415, GO, Series 1996,
(FSA Insured),
5.800% 06/01/13........ Aaa AAA 2,046
3,000 King County, Washington,
Sewer GO Refunding,
Series 1996C,
5.250% 01/01/17........ Aa1 AA+ 2,868
7,150 Pierce County,
Washington, Economic
Development Revenue,
(Occidental Petroleum
Corporation Project)
Series 1993, AMT,
5.800% 09/01/29........ Baa2 BBB- 6,295
2,000 Seattle, Washington, GO,
Series 1996A,
5.625% 01/15/10........ Aa1 AA+ 2,048
2,000 Seattle, Washington,
Municipal Light and
Power Revenue, Series
1994, Prerefunded
07/01/04 @ 102,
6.625% 07/01/16........ Aa2 AA 2,163
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
120
<PAGE> 125
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$ 3,500 Washington State, GO
Refunding, Series
1991R-92A,
6.500% 09/01/04........ Aa1 AA+ $ 3,619
5,000 Washington State, GO,
Series 1990A,
6.750% 02/01/15........ Aa1 AA+ 5,709
3,000 Washington State, GO,
Series 1992-93A,
5.750% 10/01/12........ Aa1 AA+ 3,147
3,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1993B, (FSA
Insured),
5.400% 07/01/05........ Aaa AAA 3,045
5,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1996A, (MBIA
Insured),
5.750% 07/01/11........ Aaa AAA 5,142
--------
46,799
--------
WEST VIRGINIA -- 0.7%
1,450 Jefferson County, West
Virginia, Board of
Education, GO, Series
1989, (FGIC Insured),
6.850% 07/01/07........ Aaa AAA 1,609
1,560 Jefferson County, West
Virginia, Board of
Education, GO, Series
1989, (FGIC Insured),
6.850% 07/01/08........ Aaa AAA 1,746
1,000 West Virginia University,
State University
Systems Revenue,
(Marshall University
Library) Series 1996,
(AMBAC Insured),
5.750% 04/01/16........ Aaa AAA 1,012
--------
4,367
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WISCONSIN -- 1.7%
$ 4,000 Nekoosa, Wisconsin, PCR,
(Nekoosa Papers Inc.
Project) Series 1999B,
5.500% 07/01/15........ Baa2 NR $ 3,581
1,000 Wisconsin State, GO
Refunding, Series
1993-1,
5.800% 11/01/08........ Aa2 AA 1,052
6,600 Wisconsin State, Health
and Educational
Facilities Authority,
Revenue, (Aurora Health
Care Inc.) Series
1999A,
5.600% 02/15/29........ NR BBB+ 5,293
--------
9,926
--------
WYOMING -- 1.2%
2,300 Campbell County, Wyoming,
School District Number
001 Gillette, GO,
Series 1996, (SCH BD
GTY),
5.550% 06/01/06........ Aaa AAA 2,358
5,000 Wyoming, Student Loan
Corporation, Revenue
Refunding, Series
1999A,
6.250% 06/01/29........ NR AA 5,088
--------
7,446
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $583,240)........................ 590,859
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE> 126
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.9%
(Cost $5,384)
5,384 Nations Municipal Reserves#.......... $ 5,384
--------
TOTAL INVESTMENTS
(Cost $588,624*)............ 99.6% 596,243
--------
OTHER ASSETS AND LIABILITIES
(NET)....................... 0.4%
Receivable for Fund shares sold...... $ 539
Interest receivable.................. 10,512
Payable for Fund shares redeemed..... (816)
Investment advisory fee payable...... (152)
Administration fee payable........... (102)
Shareholder servicing and
distribution fees payable.......... (14)
Distributions payable................ (2,461)
Payable for investment
securities purchased............... (4,811)
Accrued Trustees'/Directors'
fees and expenses.................. (22)
Accrued expenses and other
liabilities........................ (116)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................. 2,557
--------
NET ASSETS.................... 100.0% $598,800
========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................. $ 931
Accumulated net realized loss on
investments sold................... (6,196)
Net unrealized appreciation of
investments........................ 7,619
Paid-in capital...................... 596,446
--------
NET ASSETS........................... $598,800
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($552,650,477 / 51,716,775 shares
outstanding)....................... $10.69
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($35,936,689 / 3,363,562
shares outstanding)................ $10.68
======
Maximum sales charge................. 4.75%
Maximum offering price per share..... $11.21
INVESTOR B SHARES:
Net asset value and offering price
per share** ($8,794,533 / 823,028
shares outstanding)................ $10.69
======
INVESTOR C SHARES:
Net asset value and offering price
per share** ($1,418,313 / 132,705
shares outstanding)................ $10.69
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $7,613 on
investment securities was comprised of gross appreciation of $19,232 and
gross depreciation of $11,619 for Federal income tax purposes. At March 31,
2000, the aggregate cost of securities for Federal income tax purposes was
$588,630.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# 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) Security purchased on a "when-issued" basis.
Nations Municipal Income Fund had the following insurance concentration greater
than 10% at March 31, 2000 (as a percentage of net assets):
MBIA 14.40%
Nations Municipal Income Fund had the following industry concentration greater
than 10% at March 31, 2000 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 24.96%
Hospital Revenue 11.83%
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE> 127
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.2%
CALIFORNIA -- 95.4%
$1,465 ABAG Finance Authority
for NonProfit
Corporations,
California,
Certificates of
Participation
Refunding, (Episcopal
Homes Foundation
Project) Series 1998,
4.625% 07/01/04........ NR A- $ 1,414
2,000 ABAG Finance Authority
for NonProfit
Corporations,
California,
Multi-Family Revenue
Refunding, Series
2000A,
(GTY-AGMT), Mandatory
Put 8/15/08 @ 100,
6.400% 08/15/30........ Baa2 BBB 2,028
1,000 ABAG Finance Corporation,
California,
Certificates of
Participation, (ABAG
XXVI Project) Series
1992A,
6.250% 06/01/11........ NR A 1,022
3,000 Alameda County,
California,
Certificates of
Participation,
Refunding, (Santa Rita
Jail Project) Series
1993, (MBIA Insured),
5.700% 12/01/14........ Aaa AAA 3,070
5,000 Beverly Hills,
California, Public
Financing Authority,
Lease Revenue, (Capital
Imports Project) Series
1998A,
5.000% 06/01/23........ Aa3 AA- 4,512
1,185 Bodega Bay, California,
Fire Protection
District, Certificates
of Participation, (Fire
Station Project) Series
1996,
6.450% 10/01/31........ NR BBB- 1,182
1,000 California Health
Facilities Financing
Authority, Revenue
Refunding, (Adventist
Health Project) Series
1991A,
(MBIA Insured),
7.000% 03/01/13........ Aaa AAA 1,039
1,000 California Health
Facilities Financing
Authority, Revenue,
(Adventist Health
Systems/Sunbelt West
Project) Series 1991B,
(MBIA Insured),
6.500% 03/01/07........ Aaa AAA 1,040
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,500 California Health
Facilities Financing
Authority, Revenue,
(Cedars-Sinai Medical
Center) Series 1999A,
6.125% 12/01/19........ A2 NR $ 1,506
2,500 California Health
Facilities Financing
Authority, Revenue,
(Kaiser Permanente
Project) Series 1998A,
(FSA Insured),
5.000% 06/01/07........ Aaa AAA 2,540
3,000 California Health
Facilities Financing
Authority, Revenue,
(Kaiser Permanente
Project) Series 1998A,
(FSA Insured),
5.000% 06/01/24........ Aaa AAA 2,676
2,000 California Housing
Finance Agency, Home
Mortgage Revenue,
Series 1994F-3,
AMT, (MBIA/FHA/VA
Insured),
6.100% 08/01/15........ Aaa AAA 2,007
2,750 California Housing
Finance Agency, Home
Mortgage Revenue,
Series 1997I,
AMT, (MBIA Insured),
5.650% 08/01/17........ Aaa AAA 2,743
3,000 California Housing
Finance Agency, Home
Mortgage Revenue,
Series 1997I,
AMT, (MBIA Insured),
5.750% 02/01/29........ Aaa AAA 2,913
2,050 California Housing
Finance Agency,
Single-Family Mortgage
Revenue, Series
1997B-3, Class I,
AMT, (FHA Insured),
5.400% 08/01/28........ Aaa AAA 1,904
1,000 California Pollution
Control Financing
Authority, PCR,
(Pacific Gas and
Electric Company
Project) Series 1992A,
AMT,
6.625% 06/01/09........ A1 AA- 1,054
1,000 California Pollution
Control Financing
Authority, PCR,
(Southern California
Edison Company Project)
Series 1992B, AMT,
6.400% 12/01/24........ A1 A+ 1,013
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE> 128
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$4,500 California State,
Department of Water
Resources, Water
Systems Revenue,
(Center Valley Project)
Series 1993L,
5.700% 12/01/16........ Aa2 AA $ 4,556
2,000 California State,
Department of Water
Resources, Water
Systems Revenue,
(Center Valley Project)
Series 1997S,
5.000% 12/01/17........ Aa2 AA 1,881
2,600 California State, GO,
Series 1995, (FGIC-TCRS
Insured),
5.250% 10/01/17........ Aaa AAA 2,533
4,000 California State, Public
Works Board, Lease
Revenue, (Department of
Corrections State
Prison Project) Series
1993E,
5.500% 06/01/19........ A A+ 3,916
3,000 California, Statewide
Communities Development
Authority, Revenue
Certificates of
Participation, (John
Muir/Mount Diablo
Health Systems Project)
Series 1997, (MBIA
Insured),
5.125% 08/15/17........ Aaa AAA 2,850
1,000 Capital Area Development
Authority, California,
Lease Revenue, Series
1992A, (MBIA Insured),
6.500% 04/01/12........ Aaa AAA 1,051
1,615 Central Valley Financing
Authority, California,
Cogeneration Project
Revenue Refunding,
(Carson Ice-General
Project) Series 1998,
(MBIA Insured),
5.250% 07/01/12........ Aaa AAA 1,639
3,000 Central Valley,
California, Financing
Authority Revenue,
(Carson Ice Project)
Series 1993,
6.000% 07/01/09........ NR BBB- 3,048
1,280 Chino, California,
Unified School
District, Certificates
of Participation, (Land
Acquisition Project)
Series 1994A, (FSA
Insured),
6.600% 09/01/14........ Aaa AAA 1,313
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,250 Del Mar, California, Race
Track Authority,
Revenue Refunding,
Series 1996,
6.000% 08/15/06........ NR NR $ 1,275
1,200 Del Mar, California, Race
Track Authority,
Revenue Refunding,
Series 1996,
6.000% 08/15/08........ NR NR 1,214
1,000 Del Mar, California, Race
Track Authority,
Revenue Refunding,
Series 1996,
6.200% 08/15/11........ NR NR 1,018
3,000 East Bay Municipal
Utilities District,
California, Water
Systems Revenue
Refunding, Series 1996,
(FGIC Insured),
5.000% 06/01/16........ Aaa AAA 2,859
1,000 Eastern Municipal Water
District, California,
Water and Sewer
Certificates of
Participation, Series
1991, (FGIC Insured),
6.750% 07/01/12........ Aaa.. AAA 1,164
1,500 Elsinore Valley Municipal
Water District,
California,
Certificates of
Participation
Refunding, Series
1992A, (FGIC Insured),
6.000% 07/01/12........ Aaa AAA 1,640
925 Emeryville, California,
Public Financing
Authority, Revenue,
Unrefunded Balance,
(Redevelopment Project)
Series 1993A,
6.500% 05/01/21........ NR A- 942
1,500 Escondido JT Powers
Financing Authority,
California, Lease
Revenue, (California
Center for the Arts
Project) Series 1995,
(AMBAC Insured),
6.000% 09/01/18........ Aaa AAA 1,547
1,000 Foothill/Eastern Corridor
Agency, California,
Toll Road Revenue
Refunding, Series 1999,
5.750% 01/15/40........ BAa3 BBB- 936
2,000 Foothill/Eastern Corridor
Agency, California,
Toll Road Revenue
Refunding, Series 1999,
(MBIA Insured),
5.125% 01/15/15........ Aaa AAA 1,955
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE> 129
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$3,000 Foothill/Eastern Corridor
Agency, California,
Toll Road Revenue, Sr.
Lien, Series 1995A,
Prerefunded 01/01/10 @
100,
6.000% 01/01/16........ Aaa AAA $ 3,246
1,965 Fremont, California,
Public Financing
Authority, Revenue,
(Local Improvement
District 39R Project)
Series 1996,
6.000% 09/01/11........ NR NR 1,996
5,000 Fresno, California, Sewer
Revenue, Series
1993A-1, (AMBAC
Insured),
6.250% 09/01/14........ Aaa AAA 5,576
1,000 Industry California Urban
Development Agency, Tax
Allocation Refunding,
(Transportation
Distribution Project)
Series 1992-3,
6.900% 11/01/16........ NR A- 1,047
2,000 Inland Empire,
California, Solid Waste
Authority, Revenue,
(Landfill Improvement
Financing Project)
Series 1996B, AMT, (FSA
Insured),
6.250% 08/01/11........ Aaa AAA 2,184
1,500 Los Angeles County,
California, Sanitation
Districts Financing
Authority, Revenue,
(Capital Projects)
Series 1993A,
5.375% 10/01/13........ AA AA 1,517
2,500 Los Angeles County,
California,
Transportation
Commission, Sales Tax
Revenue, Refunding,
Series 1991B,
6.500% 07/01/13........ A1 AA- 2,601
3,000 Los Angeles, California,
Convention and
Exhibition Center
Authority, Lease
Revenue Refunding,
Series 1993A, (MBIA-IBC
Insured),
6.000% 08/15/10........ Aaa AAA 3,266
2,000 Los Angeles, California,
Department of Water and
Power, Waterworks
Revenue Refunding,
Series 1993,
5.750% 04/15/12........ Aa3 AA 2,054
2,000 Los Angeles, California,
GO, Series 1999B,
5.250% 09/01/14........ Aa2 AA 1,996
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$2,000 Los Angeles, California,
Harbor Development
Revenue, Series 1995B,
AMT,
6.625% 08/01/25........ Aa3 AA $ 2,105
3,750 Los Angeles, California,
Parking Revenue, Series
1999A, (AMBAC Insured),
5.250% 05/01/29........ Aaa AAA 3,506
2,000 Manhattan Beach,
California, Unified
School District,
Certificates of
Participation, Series
1995B, (MBIA Insured),
6.500%+ 08/01/20##..... Aaa AAA 2,057
3,000 Metropolitan Water
District of Southern
California, Waterworks
Revenue Refunding,
Series 1993A,
5.750% 07/01/21........ Aa2 AA 3,082
1,000 Natomas, California,
Unified School
District, GO, Series
1993A, (MBIA Insured),
5.750% 09/01/17........ Aaa AAA 1,012
2,000 Northern California,
Transmission Revenue,
(California-Oregon
Transmission Project)
Series 1992A, (MBIA
Insured),
6.250% 05/01/10........ Aaa AAA 2,096
2,500 Northridge Water
District, California,
Revenue Certificates of
Participation, Series
1996, (AMBAC Insured),
5.250% 02/01/18........ Aaa AAA 2,413
1,000 Oakland, California,
State Building
Authority, Lease
Revenue, (Elihu M.
Harris Project) Series
1998A, (AMBAC Insured),
5.000% 04/01/17........ Aaa AAA 941
2,500 Orange County,
California, Airport
Revenue Refunding,
Series 1997, AMT, (MBIA
Insured),
5.500% 07/01/10........ Aaa AAA 2,588
2,500 Pasadena, California,
Community Development
Commission,
Multi-Family Housing
Revenue, (Civic Center
Project) Series 1991A,
AMT, (FSA Insured),
6.400% 12/01/12........ Aaa AAA 2,560
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE> 130
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$5,000 Port Oakland, California,
Port Revenue Refunding,
Series 1997H, AMT,
(MBIA Insured),
5.500% 11/01/15........ Aaa AAA $ 5,019
2,500 Poway, California,
Certificates of
Participation
Refunding, (Poinsettia
Mobilehome Park
Project) Series 1992,
(FSA Insured),
6.375% 06/01/18........ Aaa AAA 2,582
1,000 Rancho, California, Water
District Financing
Authority, Revenue,
Series 1991, (AMBAC
Insured),
6.400% 08/15/04........ Aaa AAA 1,040
2,000 Rancho, California, Water
District, Financing
Authority, Revenue
Refunding, Series 1995,
(FGIC Insured),
5.900% 11/01/15........ Aaa AAA 2,074
2,900 Sacramento, California,
Power Authority
Revenue, (Cogeneration
Project) Series 1995,
5.875% 07/01/15........ NR BBB- 2,832
2,000 San Diego, California,
Convention Center
Expansion Financing
Authority, Lease
Revenue, Series 1998A,
(AMBAC Insured),
4.750% 04/01/28........ Aaa AAA 1,714
2,000 San Diego, California,
Special Tax, Community
Facilities District No.
1, Series 1995B,
Prerefunded 09/01/05 @
102,
7.000% 09/01/15........ NR NR 2,262
1,450 San Francisco City and
County Airports
Commission, California,
International Airport
Revenue, Series 1993-2,
Unrefunded Balance,
(MBIA Insured),
6.750% 05/01/13........ Aaa AAA 1,548
3,000 San Francisco,
California, City and
County Airport
Commission,
International Airport
Revenue, Series
1996-2-10A, AMT, (MBIA
Insured),
5.700% 05/01/26........ Aaa AAA 2,935
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,000 San Francisco,
California, State
Building Authority,
Lease Revenue, (General
Services Department
Project) Series 1993A,
(MBIA-IBC Insured),
5.000% 10/01/08........ Aaa AAA $ 1,018
1,750 San Joaquin County,
California,
Certificates of
Participation, (Capital
Facilities Project)
Series 1993, (MBIA
Insured),
5.500% 11/15/13........ Aaa AAA 1,820
3,000 San Joaquin Hills,
California,
Transportation Corridor
Agency, Toll Road
Revenue Refunding,
Capital Appreciation,
Series 1997A,
5.600%+ 01/15/16....... Baa3 BBB- 1,875
3,670 San Jose Redevelopment
Agency, California, Tax
Allocation, (Merged
Area Redevelopment
Project) Series 1993,
(MBIA Insured),
6.000% 08/01/15........ Aaa AAA 3,961
3,000 San Jose, California,
Financing Authority
Revenue, (Convention
Center Refunding
Project) Series 1993C,
6.400% 09/01/17........ Aa3 A+ 3,080
2,000 San Mateo County,
California, JT Powers
Authority, Lease
Revenue, (Capital
Project) Series 1997A,
(FSA Insured),
5.125% 07/15/32........ Aaa AAA 1,815
1,130 Santa Ana, California,
Financing Authority,
Lease Revenue, (Police
Administration and
Holding Facilities
Project) Series 1994A,
(MBIA Insured),
5.625% 07/01/09........ Aaa AAA 1,177
1,295 Scotts Valley,
California, Unified
School District, Series
1997B, (FGIC Insured),
5.375% 08/01/17........ Aaa NR 1,281
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE> 131
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,000 Southern California Rapid
Transit District,
Certificates of
Participation, (Workers
Compensation Fund
Project) Series 1990,
(MBIA Insured),
6.000% 07/01/10........ Aaa AAA $ 1,038
1,000 Southern California,
Public Power Authority,
Power Revenue, Series
1989,
6.750% 07/01/13........ A2 A 1,140
1,370 Thousand Oaks
Redevelopment Agency,
California, Tax
Allocation, Refunding,
(Thousand Oaks
Boulevard Redevelopment
Project) Series 1995,
(MBIA Insured),
5.250% 12/01/08........ Aaa AAA 1,413
1,290 Thousand Oaks
Redevelopment Agency,
California, Tax
Allocation, Refunding,
(Thousand Oaks
Boulevard Redevelopment
Project) Series 1995,
(MBIA Insured),
5.400% 12/01/09........ Aaa AAA 1,335
1,250 Union City, California,
Community Redevelopment
Agency, Tax Allocation,
(Community
Redevelopment Project)
Series 1993, (AMBAC
Insured),
5.850% 10/01/23........ Aaa AAA 1,259
5,000 University of California,
Hospital Revenue,
(University of
California Medical
Center Project) Series
1996, (AMBAC Insured),
5.750% 07/01/24........ Aaa AAA 4,948
3,000 University of California,
Hospital Revenue,
(University of
California Medical
Center Project) Series
1996, (AMBAC Insured),
6.000% 07/01/26........ Aaa AAA 3,044
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$3,000 West Covina, California,
Redevelopment Agency,
Community Facilities
District Special Tax,
Refunding, (Fashion
Plaza Project) Series
1996,
6.000% 09/01/17........ NR A $ 3,129
1,025 Westwood, California,
Unified School
District, GO, Series
1996,
6.500% 08/01/21........ NR BBB 1,037
--------
175,219
--------
PUERTO RICO -- 2.8%
5,000 Puerto Rico, Electric
Power Authority,
Revenue,
6.000% 07/01/14........ Baa1 BBB+ 5,147
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $176,302)........................ 180,366
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.7%
(Cost $1,371)
1,371 Nations Municipal Reserves#............ 1,371
--------
TOTAL INVESTMENTS
(Cost $177,673*).............. 98.9% 181,737
--------
OTHER ASSETS AND LIABILITIES
(NET)......................... 1.1%
Cash................................... $ 1
Receivable for Fund shares sold........ 209
Interest receivable.................... 2,629
Payable for Fund shares redeemed....... (264)
Investment advisory fee payable........ (74)
Administration fee payable............. (31)
Shareholder servicing and
distribution fees payable............ (31)
Distributions payable.................. (336)
Accrued Trustees'/Directors' fees
and expenses......................... (11)
Accrued expenses and other
liabilities.......................... (39)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 2,053
--------
NET ASSETS...................... 100.0% $183,790
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE> 132
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 313
Accumulated net realized gain on
investments sold..................... 62
Net unrealized appreciation of
investments.......................... 4,064
Paid-in capital........................ 179,351
--------
NET ASSETS............................. $183,790
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($21,654,272 / 3,036,459 shares
outstanding)......................... $7.13
=====
INVESTOR A SHARES:
Net asset value, and redemption price
per share ($157,671,534 / 22,077,950
shares outstanding).................. $7.14
=====
Maximum sales charge................... 4.75%
Maximum offering price per share....... $7.50
INVESTOR B SHARES:
Net asset value and offering price per
share** ($4,205,984 / 588,849 shares
outstanding)......................... $7.14
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($257,919 / 36,217 shares
outstanding)......................... $7.12
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $4,064 on
investment securities was comprised of gross appreciation of $5,631 and gross
depreciation of $1,567 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$177,673.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
## Step Bond.
Nations California Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
AMBAC 15.82%
FGIC 13.57%
MBIA 25.99%
Nations California Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Hospital Revenue 10.81%
Water Revenue 16.43%
Transportation Revenue 10.43%
Lease Revenue 22.00%
SEE NOTES TO FINANCIAL STATEMENTS.
128
<PAGE> 133
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.0%
FLORIDA -- 98.0%
$2,000 Alachua County, Florida,
Health Facilities
Authority, Revenue,
(Shands Hospital at the
University of Florida
Project) Series 1992,
(MBIA Insured),
6.100% 12/01/05........ Aaa AAA $ 2,061
3,375 Bay County, Florida, PCR
Refunding,
(International Paper
Company Project) Series
1998A,
5.100% 09/01/12........ A3 BBB+ 3,189
1,000 Bay Medical Center,
Florida, Hospital
Revenue Refunding, (Bay
Medical Center Project)
Series 1996, (AMBAC
Insured),
5.000% 10/01/05........ Aaa AAA 1,004
2,000 Bay Medical Center,
Florida, Hospital
Revenue Refunding, (Bay
Medical Center Project)
Series 1996, (AMBAC
Insured),
5.450% 10/01/12........ Aaa AAA 2,021
2,000 Boca Raton, Florida,
Water and Sewer Revenue
Refunding, Series 1992,
5.600% 10/01/04........ Aa2 AA- 2,053
1,000 Brevard County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Wuesthoff
Memorial Hospital
Project) Series 1996,
(MBIA Insured),
6.250% 04/01/06........ Aaa AAA 1,064
1,000 Broward County, Florida,
Gas Tax Revenue, Series
1991, Prerefunded
09/01/01 @ 101,
6.400% 09/01/03........ A1 AA- 1,035
2,000 Broward County, Florida,
GO Refunding, Series
1992C,
5.600% 01/01/01........ Aa2 AA 2,022
3,000 Broward County, Florida,
GO Refunding, Series
1992C,
6.200% 01/01/07........ Aa2 AA 3,124
2,000 Broward County, Florida,
School District, GO
Refunding, Series 1992,
6.000% 02/15/07........ A1 AA- 2,072
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,000 Broward County, Florida,
Solid Waste Systems
Revenue, Series 1993A,
(MBIA Insured),
5.500% 07/01/04........ Aaa AAA $ 2,052
2,275 Clearwater, Florida,
Water and Sewer
Authority, Revenue
Refunding, Series 1998,
(FGIC Insured),
4.850%+ 12/01/11....... Aaa AAA 1,203
1,000 Clearwater, Florida,
Water and Sewer
Authority, Revenue
Refunding, Series 1998,
(FGIC Insured),
5.080%+ 12/01/13....... Aaa AAA 466
3,000 Clearwater, Florida,
Water and Sewer
Authority, Revenue,
Series 1993,
(AMBAC Insured),
5.000% 12/01/02........ Aaa AAA 3,030
1,000 Collier County, Florida,
Water and Sewer
District, Revenue,
Series 1992,
(FGIC Insured),
6.375% 07/01/10........ Aaa AAA 1,054
2,300 Dade County, Florida
School District, GO
Refunding, Series 1993,
(AMBAC Insured),
5.000% 07/15/01........ Aaa AAA 2,319
1,000 Dade County, Florida,
Aviation Facility
Revenue Refunding,
Series 1994B, AMT,
(AMBAC Insured),
6.300% 10/01/05........ Aaa AAA 1,066
3,650 Dade County, Florida,
Aviation Revenue,
(Miami International
Airport Project) Series
1997B, AMT, (FSA
Insured),
5.000% 10/01/06........ Aaa AAA 3,638
2,000 Delray Beach, Florida,
Water and Sewer Revenue
Refunding, Series
1993A, (AMBAC Insured),
5.000% 10/01/02........ Aaa AAA 2,019
1,000 Delray Beach, Florida,
Water and Sewer Revenue
Refunding, Series
1993A, (AMBAC Insured),
5.000% 10/01/03........ Aaa AAA 1,011
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE> 134
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,565 Dunes, Florida, Community
Development District,
Revenue Refunding,
(Intracoastal Waterway
Bridge Project) Series
1993,
5.300% 10/01/03........ NR BBB $ 1,571
1,900 Dunes, Florida, Community
Development District,
Revenue Refunding,
(Intracoastal Waterway
Bridge Project) Series
1993,
5.400% 10/01/04........ NR BBB 1,910
1,865 Duval County, Florida,
Housing Finance
Authority, Multi-Family
Mortgage Revenue
Refunding, (The Cove
Project) Series 1992,
6.100% 10/01/02........ NR AAA 1,902
2,000 Escambia County, Florida,
Housing Finance
Authority,
Single-Family Mortgage
Revenue, (Multi-County
Program Project) Series
2000A, AMT,
(MBIA/FHA/VA Insured),
6.300% 10/01/20........ Aaa NR 2,053
3,600 Escambia County, Florida,
PCR, (Champion
International
Corporation Project)
Series 1996, AMT,
6.400% 09/01/30........ Baa1 NR 3,460
1,700 Escambia County, Florida,
Utilities Authority
Systems Revenue, Series
1996, (FGIC Insured),
5.625% 01/01/21........ Aaa AAA 1,693
1,500 Florida State, Board of
Education, Capital
Outlay GO, Unrefunded
Balance, Series 1989A,
7.250% 06/01/23........ Aa2 AA+ 1,537
1,450 Florida State, Board of
Education, Public
Education Capital
Outlay GO Refunding,
Series 1992,
5.500% 06/01/01........ Aa2 AA+ 1,470
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO Refunding,
Series 1993A,
5.000% 06/01/08........ Aa2 AA+ 1,001
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1992C, Prerefunded
06/01/02 @ 101,
6.500% 06/01/11........ Aaa AA+ $ 1,046
4,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1993D,
5.200% 06/01/11........ Aa2 AA+ 3,999
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.000% 06/01/18........ Aa2 AA+ 923
1,500 Florida State, Department
of Transportation, GO,
(Right of Way Bridge
Project) Series 1996,
5.375% 07/01/26........ Aa2 AA+ 1,426
1,000 Florida State, Division
of Bond Financing,
Department of General
Services, Revenue
Refunding, Florida
Facilities Pool, Series
1993, (AMBAC Insured),
4.800% 09/01/01........ Aaa AAA 1,006
3,000 Florida State, Division
of Bond Financing,
Department of General
Services, Revenue,
(Department of Natural
Resources - Preservation
2000 Project) Series
1991A, (AMBAC Insured),
6.250% 07/01/01........ Aaa AAA 3,069
1,000 Florida State, Division
of Bond Financing,
Department of General
Services, Revenue,
(Department of Natural
Resources - Preservation
2000 Project) Series
1992A, (AMBAC Insured),
Prerefunded
07/01/02 @ 101,
6.250% 07/01/06........ Aaa AAA 1,042
1,805 Florida State,
Jacksonville
Transportation
Authority, GO
Refunding, Senior Lien,
Series 1997,
6.000% 07/01/05........ Aa AA+ 1,902
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
130
<PAGE> 135
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,000 Florida, Greater Orlando
Aviation Authority,
Revenue Refunding,
Series 1992B, (FGIC
Insured),
6.200% 10/01/03........ Aaa AAA $ 2,097
4,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put
12/01/03 @ 100,
7.000% 12/01/24........ NR BBB+ 4,211
1,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (United
Dominion Realty Trust -
Andover Project) Series
1996E, AMT, Mandatory
Put
05/01/08 @ 100,
6.350% 05/01/26........ NR BBB+ 1,025
1,020 Florida, Housing Finance
Agency, Revenue
Refunding, (The
Vineyards Project)
Series 1995H,
5.875% 11/01/05........ NR BBB+ 1,029
1,000 Florida, Housing Finance
Agency, Revenue
Refunding, (The
Vineyards Project)
Series 1995H,
6.400% 11/01/15........ NR BBB+ 1,016
2,285 Florida, Housing Finance
Corporation, Revenue
(Homeowner Mortgage
Project) Series 1998-1,
(MBIA Insured),
4.950% 07/01/11........ Aaa AAA 2,211
3,000 Florida, Orlando and
Orange County
Expressway Authority,
Revenue Refunding,
Senior Lien, Series
1993, (AMBAC Insured),
5.000% 07/01/03........ Aaa AAA 3,029
1,000 Florida, Ports Financing
Commission, Revenue,
(State Transportation
Trust Fund Project)
Series 1996, AMT, (MBIA
Insured),
5.375% 06/01/16........ Aaa AAA 975
1,000 Gainesville, Florida,
Utility Systems
Revenue, Series 1996A,
5.750% 10/01/07........ Aa3 AA 1,050
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$3,200 Greater Orlando, Aviation
Authority, Revenue
Refunding, Series
1992D, (AMBAC Insured),
5.450% 10/01/01........ Aaa AAA $ 3,248
2,000 Greater Orlando, Aviation
Authority, Revenue
Refunding, Series
1992D, (AMBAC Insured),
5.600% 10/01/02........ Aaa AAA 2,045
1,375 Hialeah, Florida, Capital
Improvement Revenue,
Series 1993,
5.500% 10/01/18........ Baa1 NR 1,284
3,170 Hillsborough County,
Florida, Aviation
Authority, Revenue
Refunding, (Tampa
International Airport
Project) Series 1997A,
AMT, (AMBAC Insured),
5.750% 10/01/07........ Aaa AAA 3,291
1,000 Hillsborough County,
Florida, Capital
Improvement Revenue
Refunding, (County
Center Project) Series
1996B, (MBIA Insured),
5.000% 07/01/11........ Aaa AAA 982
2,640 Hillsborough County,
Florida,
Environmentally
Sensitive Lands, Series
1992, (AMBAC Insured),
6.250% 07/01/06........ Aaa AAA 2,775
3,500 Hillsborough County,
Florida, IDR Refunding,
(Tampa Electric Company
Project) Series 1992,
8.000% 05/01/22........ Aa3 AA 3,810
1,500 Indian River County,
Florida, School
District, GO Refunding,
Series 1993, (FSA
Insured),
5.000% 04/01/03........ Aaa AAA 1,514
1,800 Indian River County,
Florida, School
District, GO Refunding,
Series 1993, (FSA
Insured),
5.000% 04/01/04........ Aaa AAA 1,816
1,750 Indian River County,
Florida, School
District, GO Refunding,
Series 1993, (FSA
Insured),
5.100% 04/01/05........ Aaa AAA 1,772
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
131
<PAGE> 136
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Indian River County,
Florida, Water and
Sewer Revenue
Refunding, Series
1993A, (FGIC Insured),
5.200% 09/01/05........ Aaa AAA $ 1,016
1,000 Jacksonville Beach,
Florida, Utilities
Revenue, Series 1991,
(MBIA Insured),
Prerefunded
10/01/01 @ 102,
6.500% 10/01/12........ Aaa AAA 1,048
1,000 Jacksonville, Florida,
Electric Systems
Authority, Revenue,
Series 1993A,
5.200% 10/01/02........ Aa2 AA 1,012
1,000 Jacksonville, Florida,
Excise Tax Revenue
Refunding, Series
1995A, (FGIC Insured),
5.000% 10/01/09........ Aaa AAA 996
1,375 Jacksonville, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding, (St.
Lukes Hospital
Association Project)
Series 1991,
6.750% 11/15/02........ NR AA+ 1,439
2,745 Jacksonville, Florida,
Health Facilities
Authority, Hospital
Revenue, (Charity
Obligation Group
Project) Series 1999C,
5.250% 08/15/19........ Aa2 AA 2,571
4,200 Jacksonville, Florida,
Health Facilities
Authority, Hospital
Revenue, Series 1997B,
5.400% 08/15/18........ Aa2 NR 4,083
2,000 Lakeland, Florida,
Electricity and Water
Revenue Refunding,
Series 1992,
5.625% 10/01/04........ A1 AA- 2,069
2,025 Marion County, Florida,
Hospital District,
Revenue Refunding,
Series 1999,
5.250% 10/01/11........ A2 NR 1,910
1,500 Miami Beach, Florida, GO
Refunding, Series 1993,
(FGIC Insured),
5.300% 09/01/03........ Aaa AAA 1,529
2,000 Miami, Florida, GO
Refunding, Series 1992,
(FGIC Insured),
5.600% 12/01/03........ Aaa AAA 2,061
3,000 Miami-Dade County,
Florida, Aviation
Revenue, Series 1998C,
AMT, (MBIA Insured),
5.000% 10/01/23........ Aaa AAA 2,631
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,000 Miami-Dade County,
Florida, Aviation
Revenue, Series 1998C,
AMT, (MBIA Insured),
5.000% 10/01/28........ Aaa AAA $ 1,724
1,000 Naples, Florida, Water
and Sewer Revenue
Refunding, Series 1992,
(FGIC Insured),
6.400% 09/01/07........ Aaa AAA 1,053
1,000 Nassau County, Florida,
PCR Refunding, (ITT
Rayonier Inc. Project)
Series 1992,
6.250% 06/01/10........ Baa2 BBB- 989
3,000 North Broward, Florida,
Hospital District
Revenue Refunding,
Series 1992, (MBIA
Insured), Prerefunded
01/01/02 @ 102,
6.250% 01/01/06........ Aaa AAA 3,133
1,375 Orange County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Lakeside
Alternatives, Inc.
Project) Series 1995,
6.250% 07/01/05........ NR BBB 1,391
4,640 Orange County, Florida,
Health Facilities
Authority, Revenue,
(Orlando Regional
Healthcare Project)
Series 1996A, (MBIA
Insured),
6.250% 10/01/08........ Aaa AAA 5,021
1,405 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1993A, (MBIA
Insured),
5.400% 11/01/02........ Aaa AAA 1,428
2,800 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1993B, (MBIA
Insured),
4.400% 10/01/02........ Aaa AAA 2,777
1,445 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 1,573
555 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 605
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
132
<PAGE> 137
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,455 Orange County, Florida,
Housing Finance
Authority, Multi-Family
Mortgage Revenue,
Series 1999L, AMT,
5.650% 12/01/17........ A3 NR $ 2,281
1,720 Orange County, Florida,
Housing Finance
Authority,
Single-Family Mortgage
Revenue, Series 1997A,
AMT, (GNMA/FNMA COLL),
5.900% 09/01/19........ NR AAA 1,745
5,000 Orange County, Florida,
Tourist Development,
Tax Revenue Refunding,
Series 1998A, AMBAC
Insured),
4.750% 10/01/24........ Aaa AAA 4,306
2,000 Orlando and Orange
County, Florida,
Expressway Authority,
Revenue, Junior Lien,
Series 1990, (FGIC
Insured),
6.500% 07/01/10........ Aaa AAA 2,223
1,000 Orlando, Florida, Greater
Orlando Aviation
Authority, Airport
Facilities Revenue
Refunding, Series 1997,
AMT, (FGIC Insured),
5.125% 10/01/12........ Aaa AAA 973
3,000 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1992,
5.600% 10/01/03........ Aa1 AA 3,088
2,000 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1993B,
5.400% 10/01/08........ Aa2 AA- 2,029
2,000 Palm Beach County,
Florida, GO Refunding,
Series 1998,
5.500% 12/01/11........ Aa1 AA 2,078
1,250 Palm Beach County,
Florida, GO, Series
1991, Prerefunded
10/01/01 @ 102,
6.600% 10/01/11........ NR NR 1,309
1,750 Palm Beach County,
Florida, GO, Series
1994,
6.875% 12/01/03........ Aa1 AA 1,877
1,300 Palm Beach County,
Florida, GO, Series
1994,
7.000% 12/01/04........ Aa1 AA 1,418
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Palm Beach County,
Florida, Health
Facilities Authority,
Hospital Revenue, (Good
Samaritans Health
System Project) Series
1993,
6.100% 10/01/05........ Aaa A+ $ 1,053
4,400 Palm Beach County,
Florida, Housing
Finance Authority,
Single-Family Mortgage
Revenue Refunding,
Series 1999A, AMT,
(GNMA/FNMA COLL),
4.850% 04/01/32........ Aaa NR 4,246
2,000 Palm Beach County,
Florida, School
District, GO Refunding,
Series 1992, (AMBAC
Insured),
6.000% 08/01/06........ Aaa AAA 2,067
2,000 Palm Beach County,
Florida, Stadium
Facilities Revenue,
Series 1996, (MBIA
Insured),
5.250% 12/01/16........ Aaa AAA 1,939
1,250 Pembroke Pines, Florida,
Consolidated Utilities
Systems Revenue, Series
1992, (FGIC Insured),
6.250% 09/01/07........ Aaa AAA 1,327
1,400 Pinellas County, Florida,
Health Facilities
Authority, Hospital
Revenue, (Morton Plant
Hospital Association
Project) Series 1993,
(MBIA Insured),
4.900% 11/15/02........ Aaa AAA 1,407
1,000 Pinellas County, Florida,
PCR Refunding, (Anclote
and Barton Power
Plants - Florida Power
Corporation Project)
Series 1991,
7.200% 12/01/14........ A1 A+ 1,046
2,500 Pinellas County, Florida,
Resource Recovery
Revenue Refunding,
Series 1990A, (MBIA
Insured),
6.800% 10/01/02........ Aaa AAA 2,580
1,690 Reedy Creek, Florida,
Improvement District,
Revenue, Unrefunded
Balance, Series 1991A,
6.400% 06/01/07........ A1 A+ 1,738
1,010 Reedy Creek, Florida,
Improvement District,
Series 1991A,
Prerefunded
06/01/01 @ 101,
6.400% 06/01/07........ A1 A+ 1,042
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
133
<PAGE> 138
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,200 Sarasota County, Florida,
GO Refunding, Series
1992, (FGIC Insured),
6.100% 10/01/02........ Aaa AAA $ 1,243
1,650 Sarasota County, Florida,
Public Hospital Board,
Revenue Refunding,
(Sarasota Memorial
Hospital Project)
Series 1997B, (MBIA
Insured),
5.000% 10/01/07........ Aaa NR 1,644
1,750 Sarasota County, Florida,
Public Hospital Board,
Revenue Refunding,
(Sarasota Memorial
Hospital Project)
Series 1998B, (MBIA
Insured),
5.250% 07/01/11........ Aaa AAA 1,747
1,000 Sarasota, Florida, Water
and Sewer Utility
Revenue Refunding,
Series 1992, (FGIC
Insured),
6.000% 10/01/02........ Aaa AAA 1,033
2,100 Seminole County, Florida,
School District, GO
Refunding, Series 1992,
(MBIA Insured),
5.900% 08/01/02........ Aaa AAA 2,159
2,000 St. Lucie County,
Florida, School
District, GO Refunding,
Series 1992, (AMBAC
Insured),
6.000% 07/01/03........ Aaa AAA 2,078
1,000 St. Lucie County,
Florida, School
District, GO, Series
1997, (FGIC Insured),
5.875% 02/01/07........ Aaa AAA 1,053
2,000 St. Petersburg, Florida,
Utility Tax Revenue
Refunding, Series 1992,
(AMBAC Insured),
6.000% 06/01/05........ Aaa AAA 2,083
1,000 Tallahassee, Florida,
Health Facilities
Revenue Refunding,
(Tallahassee Memorial
Regional Medical Center
Project) Series 1992B,
(MBIA Insured),
5.750% 12/01/04........ Aaa AAA 1,037
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Tallahassee, Florida,
Health Facilities
Revenue Refunding,
(Tallahassee Memorial
Regional Medical Center
Project) Series 1992A,
(MBIA Insured),
5.750% 12/01/04........ Aaa AAA $ 1,037
1,000 Tampa, Florida, Capital
Improvement Authority,
Hospital Revenue, (H.
Lee Moffitt Project)
Series 1999A,
4.875% 07/01/13........ A3 A 872
2,000 Tampa, Florida, Health
Systems Revenue,
(Catholic Health
Project) Series
1998A-1, (MBIA
Insured),
4.875% 11/15/15........ Aaa AAA 1,838
3,170 Tampa, Florida, Sports
Authority, Local
Optional Sales Tax
Revenue, (Stadium
Project) Series 1997,
(MBIA Insured),
6.000% 01/01/07........ Aaa AAA 3,357
3,000 Tampa, Florida, Tax
Allocation,
(Cigarette - H. Lee
Moffitt Cancer Project)
Series 1999, (AMBAC
Insured),
5.000% 03/01/07........ Aaa AAA 3,012
1,000 Tampa, Florida, Water and
Sewer Revenue, Series
1993A, (FGIC Insured),
5.000% 10/01/02........ Aaa AAA 1,009
1,025 Venice, Florida, Health
Facilities Revenue,
(Venice Hospital Inc.
Project) Series 1994,
5.300% 12/01/02........ Aaa NR 1,039
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $215,737)........................ 217,765
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
134
<PAGE> 139
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.4%
(Cost $945)
945 Nations Municipal Reserves#........... $ 945
--------
TOTAL INVESTMENTS
(Cost $216,682*)............. 98.4% 218,710
--------
OTHER ASSETS AND
LIABILITIES (NET)............ 1.6%
Receivable for Fund shares sold....... $ 267
Interest receivable................... 4,265
Payable for Fund shares redeemed...... (59)
Investment advisory fee payable....... (19)
Administration fee payable............ (38)
Shareholder servicing and
distribution fees payable........... (6)
Distributions payable................. (866)
Accrued Trustees'/Directors' fees
and expenses........................ (19)
Accrued expenses and other
liabilities......................... (80)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... 3,445
--------
NET ASSETS..................... 100.0% $222,155
========
NET ASSETS CONSIST OF:
Undistributed net investment
income.............................. $ 13
Accumulated net realized loss on
investments sold.................... (1,561)
Net unrealized appreciation of
investments......................... 2,028
Paid-in capital....................... 221,675
--------
NET ASSETS............................ $222,155
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($207,703,749 / 20,091,546 shares
outstanding)........................ $10.34
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($9,695,291 / 938,539
shares outstanding)................. $10.33
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.68
INVESTOR B SHARES:
Net asset value and offering price per
share** ($4,638,680 / 448,686 shares
outstanding)........................ $10.34
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($117,108 / 11,308 shares
outstanding)........................ $10.36
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $2,028 on
investment securities was comprised of gross appreciation of $4,512 and gross
depreciation of $2,484 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$216,682.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations Florida Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
AMBAC 20.02%
MBIA 21.03%
Nations Florida Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Hospital Revenue 12.80%
Transportation Revenue 12.97%
SEE NOTES TO FINANCIAL STATEMENTS.
135
<PAGE> 140
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.2%
FLORIDA -- 89.0%
$ 870 Alachua County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Santa Fe
Healthcare Facilities,
Inc. Project) Series
1993,
6.000% 11/15/09........ Baa1 AAA $ 900
1,000 Alachua County, Florida,
Health Facilities
Authority, Revenue,
(Shands Teaching
Hospital/Clinic
Project) Series 1996A,
(MBIA Insured),
5.000% 12/01/04........ Aaa AAA 1,007
1,000 Bay County, Florida, PCR
Refunding,
(International Paper
Company Project) Series
1998A,
5.100% 09/01/12........ A3 BBB+ 945
2,550 Brevard County, Florida,
Health Facilities
Authority, Revenue,
(Holmes Regional
Medical Center, Inc.
Project) Series 1996,
(MBIA Insured),
5.625% 10/01/14........ Aaa AAA 2,580
1,000 Canaveral, Florida, Port
Authority, Port
Improvement Revenue
Refunding, Series
1996B, (FGIC Insured),
5.700% 06/01/13........ Aaa AAA 1,025
2,250 Charlotte County,
Florida, Utility
Revenue Refunding,
Series 1996A, (FGIC
Insured),
5.625% 10/01/16........ Aaa AAA 2,273
5,175 Collier County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Moorings,
Inc. Project) Series
1994,
7.000% 12/01/19........ NR BBB+ 5,309
2,500 Dade County, Florida,
Aviation Revenue,
Series 1996A, AMT,
(MBIA Insured),
5.750% 10/01/12........ Aaa AAA 2,564
1,000 Dade County, Florida,
School District, GO,
Series 1994A, (MBIA
Insured),
6.125% 06/01/14........ Aaa AAA 1,065
1,500 Dade County, Florida,
Water and Sewer System
Revenue Refunding,
Series 1993, (FGIC
Insured),
5.000% 10/01/13........ Aaa AAA 1,450
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,000 Escambia County, Florida,
Housing Finance
Authority,
Single-Family Mortgage
Revenue, (Multi-County
Program Project) Series
2000A, AMT,
(MBIA/FHA/VA Insured),
6.300% 10/01/20........ Aaa NR $ 2,053
1,000 Escambia County, Florida,
PCR, (Champion
International
Corporation Project)
Series 1994, AMT,
6.900% 08/01/22........ Baa1 BBB 1,018
1,000 Escambia County, Florida,
PCR, (Champion
International
Corporation Project)
Series 1996, AMT,
6.400% 09/01/30........ Baa1 NR 961
3,000 Florida State, Board of
Education, Capital
Outlay GO, Series
1997A,
5.000% 01/01/17........ Aa2 AA+ 2,796
1,000 Florida State, Board of
Education, Capital
Outlay GO, Unrefunded
Balance, Series 1989A,
7.250% 06/01/23........ Aa2 AA+ 1,025
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO Refunding,
Series 1993A,
5.000% 06/01/08........ Aa2 AA+ 1,001
2,500 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.250% 06/01/16........ Aa2 AA+ 2,428
2,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.000% 06/01/18........ Aa2 AA+ 1,847
1,000 Florida State, Department
of Transportation, GO,
(Right of Way Bridge
Project) Series 1996,
5.375% 07/01/26........ Aa2 AA+ 951
1,500 Florida State, Municipal
Power Agency, Revenue
Refunding, (St. Lucie
Project) Series 1992,
(FGIC Insured),
5.250% 10/01/21........ Aaa AAA 1,413
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
136
<PAGE> 141
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put 12/01/03
@ 100,
7.000% 12/01/24........ NR BBB+ $ 1,053
2,990 Florida, Housing Finance
Agency, Revenue,
(Homeowner Mortgage
Project) Series 1997-2,
AMT, (MBIA Insured),
5.750% 07/01/14........ Aaa AAA 3,017
1,660 Florida, Housing Finance
Corporation, Revenue
(Homeowner Mortgage
Project) Series 1998-1,
(MBIA Insured),
4.950% 01/01/11........ Aaa AAA 1,608
3,000 Gainesville, Florida,
Utility Systems
Revenue, Series 1992B,
6.500% 10/01/11........ Aa3 AA 3,370
2,000 Hillsborough County,
Florida, Aviation
Authority Revenue
Refunding, (Tampa
International Airport
Project) Series 1997B,
(AMBAC Insured),
5.125% 10/01/17........ Aaa AAA 1,893
1,000 Hillsborough County,
Florida, IDR Refunding,
(Tampa Electric Company
Project) Series 1992,
8.000% 05/01/22........ Aa3 AA 1,089
1,000 Hillsborough County,
Florida, Utilities
Revenue Refunding,
Series 1993, (MBIA
Insured),
5.500% 08/01/12........ Aaa AAA 1,008
5,000 Jacksonville, Florida,
Sales Tax Revenue,
(River City Renaissance
Project) Series 1995,
(FGIC Insured),
5.650% 10/01/14........ Aaa AAA 5,086
5,000 Jacksonville, Florida,
Sales Tax Revenue,
(River City Renaissance
Project) Series 1995,
(FGIC Insured),
5.375% 10/01/18........ Aaa AAA 4,866
2,430 Leon County, Florida,
Capital Improvement
Revenue, Series 1997,
(AMBAC Insured),
5.250% 10/01/17........ Aaa AAA 2,352
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,300 Martin County, Florida,
Industrial Development
Authority, Revenue,
(Indiantown
Cogeneration Project)
Series 1995B, AMT,
8.050% 12/15/25........ Baa3 BBB- $ 2,334
2,620 Miami Beach, Florida,
Water and Sewer
Revenue, Series 1995,
(FSA Insured),
5.375% 09/01/15........ Aaa AAA 2,600
3,500 Miami-Dade County,
Florida, Aviation
Revenue, AMT, Series
1998C, (MBIA Insured),
5.250% 10/01/15........ Aaa AAA 3,360
2,000 North Broward, Florida,
Hospital District,
Revenue Refunding,
Series 1997, (MBIA
Insured),
5.250% 01/15/17........ Aaa AAA 1,922
5,000 Okaloosa County, Florida,
Gas Distribution
Revenue Refunding,
Series 1994, (MBIA
Insured), Prerefunded
10/01/04 @ 102,
6.875% 10/01/19........ Aaa AAA 5,489
935 Orange County, Florida,
Health Facilities
Authority, Revenue,
(Orlando Regional
Healthcare Project),
Series 1993B, (MBIA
Insured),
5.000% 10/01/10........ Aaa AAA 917
3,260 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 3,549
1,260 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 1,375
1,000 Orange County, Florida,
Sales Tax Revenue,
Series 1993B,
5.375% 01/01/24........ A1 A+ 948
1,000 Orange County, Florida,
Tourist Development Tax
Revenue, Series 1994B,
(MBIA Insured),
Prerefunded 10/01/04 @
102,
6.000% 10/01/14........ Aaa AAA 1,063
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
137
<PAGE> 142
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$3,000 Orange County, Florida,
Tourist Development,
Tax Revenue Refunding,
Series 1998A, AMBAC
Insured),
4.750% 10/01/24........ Aaa AAA $ 2,584
2,950 Orlando, Florida, Greater
Orlando Aviation
Authority, Airport
Facilities Revenue,
Series 1999A, AMT,
(FGIC Insured),
5.250% 10/01/10........ Aaa AAA 2,941
1,500 Orlando, Florida,
Utilities Commission,
Water and Electric
Utilities Revenue
Refunding, Series
1994A,
5.000% 10/01/20........ Aa AA- 1,357
3,000 Orlando, Florida,
Utilities Commission,
Water and Electricity
Revenue Refunding,
Series 1989D,
6.750% 10/01/17........ Aa2 AA- 3,411
1,000 Osceola County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Evangelical
Lutheran Good Samaritan
Society Project) Series
1994, (AMBAC Insured),
6.000% 05/01/10........ Aaa AAA 1,036
1,500 Palm Beach County,
Florida, Health
Facilities Authority,
Hospital Revenue, (Good
Samaritans Health
System Project) Series
1993, Prerefunded
10/01/05 @ 100,
6.200% 10/01/11........ Aaa A+ 1,584
1,000 Palm Beach County,
Florida, Housing
Finance Authority,
Single-Family Mortgage
Revenue Refunding,
Series 1999A, AMT,
(GNMA/FNMA COLL),
4.850% 04/01/32........ Aaa NR 965
5,065 Palm Beach County,
Florida, Solid Waste
Authority, Revenue,
Unrefunded Balance,
Series 1997A, (AMBAC
Insured),
6.000% 10/01/10........ Aaa AAA 5,364
2,000 Pensacola, Florida,
Airport Revenue, Series
1997B, AMT, (MBIA
Insured),
5.625% 10/01/14........ Aaa AAA 2,015
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Polk County, Florida,
Industrial Development
Authority, Solid Waste
Disposal Facilities
Revenue, (Tampa
Electric Company
Project) Series 1996,
AMT,
5.850% 12/01/30........ Aa2 A-1+ $ 986
4,000 South Broward, Florida,
Hospital District,
Revenue Refunding,
Series 1993, (FSA
Insured),
5.500% 05/01/28........ Aaa AAA 3,831
4,000 South Miami, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding,
(Baptist Health Systems
Obligation Group
Project) Series 1995,
(MBIA Insured),
5.375% 10/01/16........ Aaa AAA 3,908
2,500 Sunrise Lakes, Florida,
Phase 4 Recreational
District, GO, Series
1995A, Prerefunded
08/01/05 @ 102,
6.750% 08/01/24........ NR BBB- 2,741
1,000 Tampa, Florida, Sports
Authority, Local
Optional Sales Tax
Revenue, (Stadium
Project) Series 1997,
(MBIA Insured),
5.125% 01/01/12........ Aaa AAA 990
2,000 Tampa, Florida, Sports
Authority, Local
Optional Sales Tax
Revenue, (Stadium
Project) Series 1997,
(MBIA Insured),
5.250% 01/01/17........ Aaa AAA 1,937
2,500 Tampa, Florida, Sports
Authority, Sales Tax
Revenue, (Tampa Bay
Arena Project) Series
1995, (MBIA Insured),
5.750% 10/01/15........ Aaa AAA 2,610
1,000 Tampa, Florida, Tax
Allocation, (H-Lee
Moffitt Cancer Project)
Series 1999, (AMBAC
Insured),
4.875% 03/01/06........ Aaa AAA 999
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
138
<PAGE> 143
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Volusia County, Florida,
Educational Facilities
Authority, Educational
Facilities Revenue,
(Embry-Riddle
Aeronautical University
Project) Series 1996A,
6.125% 10/15/26........ Baa2 NR $ 993
2,380 Volusia County, Florida,
Educational Facilities
Authority, Educational
Facilities Revenue,
(Embry-Riddle
Aeronautical University
Project) Series 1999A,
5.750% 10/15/29........ Baa2 NR 2,217
--------
125,979
--------
GUAM -- 5.1%
3,820 Guam, Airport Authority,
Revenue, Series 1993A,
6.375% 10/01/10........ NR BBB 3,958
3,000 Guam, Power Authority,
Revenue, Series 1994A,
Prerefunded 10/01/04 @
102,
6.750% 10/01/24........ NR AAA 3,297
--------
7,255
--------
PUERTO RICO -- 4.1%
4,190 Puerto Rico Commonwealth,
GO, Series 1997, (MBIA
Insured),
6.500% 07/01/15........ Aaa AAA 4,743
1,000 Puerto Rico, Industrial
Tourist Educational
Medical and
Environmental
Authority, Control
Facilities Hospital
Revenue, (Hospital
Auxilio Mutuo
Obligation Group
Project) Series 1995A,
(MBIA Insured),
6.250% 07/01/16........ Aaa AAA 1,045
--------
5,788
--------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $135,043)........................ 139,022
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.1%
(Cost $210)
210 Nations Municipal Reserves#............. $ 210
--------
TOTAL INVESTMENTS
(Cost $135,253*)............... 98.3% 139,232
--------
OTHER ASSETS AND LIABILITIES
(NET).......................... 1.7%
Receivable for Fund shares sold......... $ 26
Interest receivable..................... 3,221
Payable for Fund shares redeemed........ (306)
Investment advisory fee payable......... (35)
Administration fee payable.............. (24)
Shareholder servicing and
distribution fees payable............. (22)
Distributions payable................... (406)
Accrued Trustees'/Directors' fees
and expenses.......................... (18)
Accrued expenses and other
liabilities........................... (69)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 2,367
--------
NET ASSETS....................... 100.0% $141,599
========
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 139
Accumulated net realized gain on
investments sold...................... 56
Net unrealized appreciation of
investments........................... 3,979
Paid-in capital......................... 137,425
--------
Net assets.............................. $141,599
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
139
<PAGE> 144
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($79,335,413 / 8,326,400 shares
outstanding).......................... $9.53
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($49,439,586 / 5,188,570 shares
outstanding).......................... $9.53
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $10.01
INVESTOR B SHARES:
Net asset value and offering price per
share**
($12,801,717 / 1,343,555 shares
outstanding).......................... $9.53
=====
INVESTOR C SHARES:
Net asset value and offering price per
share**
($22,670 / 2,379 shares outstanding).... $9.53
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $3,979 on
investment securities was comprised of gross appreciation of $4,598 and gross
depreciation of $619 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $135,253.
** 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.
Nations Florida Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
AMBAC 10.05%
FGIC 13.46%
MBIA 32.05%
Nations Florida Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Hospital Revenue 17.64%
Transportation Revenue 13.44%
Special Tax 13.70%
Electric Revenue 10.89%
SEE NOTES TO FINANCIAL STATEMENTS.
140
<PAGE> 145
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 100.6%
GEORGIA -- 100.6%
$1,000 Alpharetta, Georgia, GO,
Series 1992,
6.000% 05/01/03........ Aa2 AA $ 1,035
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 1996,
(AMBAC Insured),
5.000% 01/01/03........ Aaa AAA 1,006
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 1996,
(AMBAC Insured),
6.000% 01/01/03........ Aaa AAA 1,031
4,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series
2000A, (FGIC Insured),
5.600% 01/01/30(a)..... Aaa AAA 3,875
1,000 Atlanta, Georgia,
Downtown Development
Authority, Revenue
Refunding, (Underground
Atlanta Project) Series
1992,
6.250% 10/01/12........ Aa3 AA 1,045
2,000 Atlanta, Georgia, Urban
Residential Financial
Authority, Multi-Family
Revenue Refunding,
(Housing City Plaza
Project) Series 1998,
AMT, (FNMA COLL),
Mandatory Put 12/01/08
@ 100,
4.550% 12/01/28........ NR AAA 1,883
2,750 Bibb County, Georgia, GO,
Series 1993,
5.500% 01/01/08........ A1 AA 2,800
1,000 Brunswick and Glynn
County, Georgia,
Development Authority,
Revenue Refunding,
(Georgia-Pacific
Corporation Project)
Series 1998, AMT,
5.550% 03/01/26........ Baa2 NR 854
1,500 Burke County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation Project)
Series 1994B,
4.700% 01/01/04........ A3 A 1,465
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$2,500 Cartersville, Georgia,
Development Authority,
Sewer Facilities
Revenue Refunding,
(Anheuser-Busch
Companies, Inc.
Project) Series 1997,
AMT,
5.625% 05/01/09........ A1 A+ $ 2,540
1,000 Cherokee County, Georgia,
School System GO
Refunding, Series 1992,
5.900% 06/01/02........ A2 AA 1,025
1,000 Cherokee County, Georgia,
School System GO,
Series 1993, (AMBAC
Insured),
5.875% 02/01/09........ Aaa AAA 1,044
765 Cherokee County, Georgia,
Water and Sewer
Authority, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.300% 08/01/09........ Aaa AAA 774
1,000 Clarke County, Georgia,
Hospital Authority,
Revenue, (Athens
Regional Medical Center
Project) Series 1993,
(MBIA Insured),
Prerefunded 01/01/03 @
102,
5.750% 01/01/08........ Aaa AAA 1,042
1,000 Clarke County, Georgia,
School District, GO
Refunding, Series 1993,
(FGIC Insured),
5.100% 07/01/04........ Aaa AAA 1,010
3,190 Clayton County, Georgia,
Hospital Authority,
Revenue Anticipation
Certificates, (Southern
Regional Medical Center
Project) Series 1998A,
(MBIA Insured),
5.250% 08/01/09........ Aaa AAA 3,198
1,000 Clayton County, Georgia,
Water and Sewer
Authority, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.400% 05/01/07........ Aaa AAA 1,018
2,000 Cobb County and Marietta,
Georgia, Water
Authority, Revenue
Refunding, Series 1993,
5.000% 11/01/03........ Aa1 AA 2,016
1,000 Cobb County, Georgia,
Detention Buildings and
Facilities GO, Series
1993,
5.300% 01/01/08........ Aaa AAA 1,012
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
141
<PAGE> 146
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,200 Cobb County, Georgia,
Kennestone Hospital
Authority, Revenue,
Series 1992A,
5.600% 04/01/05........ Aa2 AA $ 1,222
1,000 Cobb County, Georgia,
Kennestone Hospital
Authority, Revenue,
Series 1992A,
5.700% 04/01/06........ Aa2 AA 1,020
2,000 Cobb County, Georgia,
School District, GO,
Series 1991B,
6.150% 02/01/03........ Aa1 AA 2,073
2,000 Cobb County, Georgia,
School District, GO,
Series 1995,
4.800% 02/01/04........ Aa1 AA 2,001
1,000 Cobb County, Georgia,
Water and Sewer
Authority, Revenue
Refunding, Series
1993A,
5.400% 07/01/08........ Aa1 AA 1,015
2,250 Columbus, Georgia, Water
and Sewer Authority,
Revenue Refunding,
Series 1992, (FGIC
Insured),
6.000% 05/01/03........ Aaa AAA 2,328
1,000 Columbus, Georgia, Water
and Sewer Authority,
Revenue Refunding,
Series 1993,
5.100% 05/01/03........ A2 A+ 1,006
1,000 Dalton, Georgia, Building
Authority Revenue,
Series 1993,
5.000% 07/01/02........ A1 NR 1,007
2,500 Dalton, Georgia, Multiple
Utilities Revenue
Refunding, Series 1997,
(MBIA Insured),
4.450% 01/01/03........ Aaa AAA 2,475
5,000 Dalton, Georgia, Multiple
Utilities Revenue
Refunding, Series 1997,
(MBIA Insured),
6.000% 01/01/06........ Aaa AAA 5,260
4,000 DeKalb County, Georgia,
Development Authority,
Revenue, (Emory
University Project)
Series 1994A,
6.000% 10/01/14........ Aa1 AA 4,137
1,000 DeKalb County, Georgia,
School District, GO
Refunding, Series 1993,
5.000% 07/01/03........ Aa2 AA 1,008
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Downtown Savannah
Authority, Georgia,
Revenue Refunding,
(Chatham County
Project) Series 1993A,
5.000% 01/01/11........ Aa3 AA $ 979
6,440 Effingham County,
Georgia, Development
Authority, Solid Waste
Disposal Revenue, (Fort
James Corporation
Project) Series 1998,
AMT,
5.625% 07/01/18........ Baa2 BBB- 5,747
1,000 Fayette County, Georgia,
School District, GO
Refunding, Series 1992,
(FGIC Insured),
6.100% 03/01/03........ Aaa AAA 1,036
1,000 Forsyth County, Georgia,
School District, GO,
Series 1999,
6.000% 02/01/15........ Aa2 AA- 1,052
1,500 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (Georgia
Baptist Health Care
Project) Series 1992A,
5.800% 09/01/01........ Baa1 NR 1,523
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates (Georgia
Baptist Health Care
Project) Series 1992A,
Prerefunded 09/01/02 @
102,
6.000% 09/01/03........ Baa1 NR 1,043
2,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Joseph Hospital
Project) Series 1994,
4.900% 10/01/03........ Aaa A 2,007
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Joseph Hospital
Project) Series 1994,
5.500% 10/01/14........ Aaa A 1,008
2,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, Health
Systems Revenue,
(Catholic Health East
Project) Series 1998A,
(MBIA Insured),
4.600% 11/15/09........ Aaa AAA 1,863
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
142
<PAGE> 147
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Fulton and DeKalb
Counties, Georgia,
Hospital Authority, GO
Refunding Certificates,
(Grady Memorial
Hospital Project)
Series 1993, (MBIA
Insured),
5.250% 01/01/04........ Aaa AAA $ 1,010
1,025 Fulton County, Georgia,
Building Authority,
Revenue, (County
Government and Health
Facilities Project)
Series 1992A,
5.700% 01/01/04........ Aa3 AA 1,055
1,735 Fulton County, Georgia,
Development Authority,
Revenue, (Georgia Tech
Foundation Facilities
Project) Series 1997A,
5.000% 09/01/17........ Aa1 AA+ 1,606
1,000 Fulton County, Georgia,
Hospital Authority,
Revenue Refunding
Anticipation
Certificates,
(Northside Project)
Series 1992A, (MBIA
Insured),
6.000% 10/01/01........ Aaa AAA 1,022
2,900 Fulton County, Georgia,
Housing Authority,
Multi-Family Housing
Revenue, (Concorde
Place Apartments
Project) Series 1996A,
AMT, Prerefunded
07/01/08 @ 100,
6.375% 01/01/27........ NR AAA 3,112
1,500 Fulton County, Georgia,
School District, GO
Refunding, Series 1991,
6.250% 05/01/04........ Aa2 AA 1,578
1,500 Georgia State, GO
Refunding, Series
1992A,
6.250% 03/01/06........ Aaa AAA 1,604
1,200 Georgia State, GO, Series
1992B,
6.000% 03/01/04........ Aaa AAA 1,251
2,750 Georgia State, GO, Series
1993C,
6.500% 07/01/05........ Aaa AAA 2,959
2,000 Georgia State, GO, Series
1999D,
5.800% 11/01/13........ Aaa AAA 2,114
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 885 Georgia State, Housing
and Finance Authority,
Revenue, (Home
Ownership Program)
Series 1992B, AMT,
6.600% 06/01/25........ Aa AAA $ 903
1,000 Georgia State, Tollway
Authority, Revenue
Refunding, (Georgia 400
Project) Series 1998,
5.000% 07/01/07........ Aaa AAA 1,004
2,000 Georgia State, Tollway
Authority, Revenue,
(Georgia 400 Project)
Series 1991,
Prerefunded 07/01/01 @
102,
6.375% 07/01/02........ Aaa AAA 2,084
1,000 Georgia State, Tollway
Authority, Revenue,
(Georgia 400 Project)
Series 1991,
Prerefunded 07/01/01 @
102,
6.400% 07/01/03........ Aaa AAA 1,042
3,880 Georgia, George L. Smith
II World Congress
Center Authority,
Revenue Refunding,
(Domed Stadium Project)
Series 2000, AMT, (MBIA
Insured),
6.000% 07/01/05(a)..... Aaa AAA 4,042
1,500 Georgia, Municipal Gas
Authority, Gas Tax
Revenue, (Southern
Storage Gas Project)
Series 1994,
6.000% 07/01/04........ NR A- 1,556
1,000 Griffin-Spalding County,
Georgia, School System,
GO, Series 1996, (State
Aid Withholding, FSA
Insured),
5.250% 02/01/10........ Aaa AAA 1,003
2,000 Griffin-Spalding County,
Georgia, School System,
GO, Series 1996, (State
Aid Withholding, FSA
Insured),
5.600% 02/01/21........ Aaa AAA 1,976
1,000 Gwinnett County, Georgia,
School District, GO,
Series 1993,
5.250% 02/01/08........ Aa1 AA+ 1,006
1,000 Hall County, Georgia,
School District, GO
Refunding, Series
1992B,
6.300% 12/01/05........ A1 NR 1,067
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
143
<PAGE> 148
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$2,000 Hall County, Georgia,
School District, GO,
Series 1994, (AMBAC
Insured), Prerefunded
12/01/04 @ 102,
6.700% 12/01/14........ Aaa AAA $ 2,184
1,000 Henry City and County,
Georgia, Water and
Sewer Authority,
Improvement Revenue
Refunding, Series
1993A,
5.000% 02/01/07........ A2 NR 992
450 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, (AMBAC Insured),
5.250% 07/01/09........ Aaa AAA 455
1,550 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, Prerefunded
07/01/07 @ 102, (AMBAC
Insured),
5.250% 07/01/09........ Aaa AAA 1,588
2,000 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, Prerefunded
07/01/07 @ 102, (AMBAC
Insured),
6.000% 07/01/29........ Aaa AAA 2,033
1,000 Henry County, Georgia,
School District, GO
Refunding, Series
1992B,
5.600% 08/01/01........ A1 A+ 1,014
1,000 Henry County, Georgia,
School District, GO,
Series 1992A,
5.700% 08/01/02........ A1 A+ 1,023
2,000 Houston County, Georgia,
School District, GO,
Series 1996, (State Aid
Withholding, MBIA
Insured),
5.500% 03/01/16........ Aaa AAA 2,000
1,000 Macon, Georgia, Water
Authority, Water and
Sewer Revenue
Refunding, Series
1994A,
4.700% 10/01/04........ A1 AA- 991
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Macon-Bibb County,
Georgia, Industrial
Authority, Industrial
Revenue, (Weyerhaeuser
Company Project) Series
1982,
9.000% 10/01/07........ NR A+ $ 1,240
1,000 Meriwether County,
Georgia, School
District, GO, Series
1996, (State Aid
Withholding, FSA
Insured),
5.500% 02/01/16........ Aaa AAA 999
3,000 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue Refunding,
Series 1992P, (AMBAC
Insured),
5.900% 07/01/03........ Aaa AAA 3,102
540 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1983D,
7.000% 07/01/11........ Aaa AAA 624
2,500 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1998B,
(MBIA Insured),
5.100% 07/01/13........ Aaa AAA 2,435
1,000 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1998B,
(MBIA Insured),
5.100% 07/01/15........ Aaa AAA 956
1,000 Monroe County, Georgia
Development Authority,
PCR, (Oglethorpe Power
Corporation Project)
Series 1992A,
6.800% 01/01/12........ A3 A 1,112
1,100 Paulding County, Georgia,
School District, GO,
Series 1992A,
6.400% 02/01/04........ A2 A 1,158
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue, (Agnes Scott
College Project) Series
1999, (MBIA Insured),
4.750% 06/01/15........ Aaa AAA 913
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue, (Agnes Scott
College Project) Series
1999, (MBIA Insured),
4.800% 06/01/16........ Aaa AAA 910
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
144
<PAGE> 149
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,400 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue, (Emory
University Project)
Series 1992C,
5.750% 10/01/02........ Aa1 AA $ 1,436
1,000 Richmond County, Georgia,
Board of Education, GO
Refunding, Series 1993,
(FGIC Insured),
4.700% 11/01/06........ Aaa AAA 981
2,000 Roswell, Georgia, GO,
Series 1995,
5.600% 02/01/10........ Aa2 AAA 2,053
1,000 Savannah, Georgia,
Economic Development
Authority, Revenue
Refunding, (Union Camp
Corporation Project)
Series 1993,
5.150% 05/01/02........ A3 NR 1,002
1,250 Savannah, Georgia,
Hospital Authority,
Revenue Refunding,
(Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @
102,
7.000% 01/01/11........ BA1 BB 1,340
1,225 Savannah, Georgia,
Hospital Authority,
Revenue, (St.
Josephs-Candler Health
Systems Project) Series
1998A, (FSA Insured),
5.250% 07/01/11........ Aaa NR 1,215
1,310 Savannah, Georgia,
Hospital Authority,
Revenue, (St.
Josephs-Candler Health
Systems Project) Series
1998A, (FSA Insured),
5.250% 07/01/12........ Aaa NR 1,289
1,500 Savannah, Georgia,
Resource Recovery
Development Authority,
Revenue Refunding,
(Savannah Energy
Systems Company
Project) Series 1992,
5.850% 12/01/01........ A1 A+ 1,528
1,000 Savannah, Georgia, Water
and Sewer Improvement
Revenue Refunding,
Series 1993,
5.100% 12/01/09........ Aa3 AA- 1,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$2,570 White County, Georgia,
Industrial Development
Authority, Revenue
Refunding, (Springs
Industries, Inc.
Project) Series 1992,
6.850% 06/01/10........ NR BBB+ $ 2,603
--------
143,653
--------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $142,533)........................ 143,653
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 3.7%
(Cost $5,303)
5,303 Nations Municipal Reserves#........... 5,303
--------
TOTAL INVESTMENTS
(Cost $147,836*)............. 104.3% 148,956
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (4.3)%
Cash.................................. $ 1
Receivable for Fund shares sold....... 243
Interest receivable................... 2,177
Payable for Fund shares redeemed...... (102)
Investment advisory fee payable....... (5)
Administration fee payable............ (24)
Shareholder servicing and
distribution fees payable........... (10)
Distributions payable................. (523)
Payable for investment securities
purchased........................... (7,844)
Accrued Trustees'/Directors' fees
and expenses........................ (20)
Accrued expenses and other
liabilities......................... (81)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (6,188)
--------
NET ASSETS..................... 100.0% $142,768
========
NET ASSETS CONSIST OF:
Undistributed net investment
income.............................. $ 96
Accumulated net realized loss on
investments sold.................... (1,180)
Net unrealized appreciation of
investments......................... 1,120
Paid-in capital....................... 142,732
--------
NET ASSETS............................ $142,768
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
145
<PAGE> 150
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($121,948,290 / 11,706,602 shares
outstanding)........................ $10.42
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($13,244,036 / 1,271,342
shares outstanding)................. $10.42
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.77
INVESTOR B SHARES:
Net asset value and offering price per
share** ($6,812,084 / 653,929 shares
outstanding)........................ $10.42
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($763,584 / 73,302 shares
outstanding)........................ $10.42
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $1,120 on
investment securities was comprised of gross appreciation of $2,690 and gross
depreciation of $1,570 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$147,836.
** 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) Security purchased on a "when-issued" basis.
Nations Georgia Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
MBIA 13.75%
Nations Georgia Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 11.31%
SEE NOTES TO FINANCIAL STATEMENTS.
146
<PAGE> 151
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 94.1%
GEORGIA -- 94.1%
$ 500 Atlanta and Fulton County,
Georgia, Recreation
Authority, Public
Improvement Revenue,
(Downtown Area Project)
Series 1996A, (MBIA
Insured),
5.375% 12/01/26......... Aaa AAA $ 473
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 2000A,
(FGIC Insured),
5.600% 01/01/30......... Aaa AAA 969
500 Bartow County, Georgia,
School District, GO,
Series 1993, Prerefunded
05/01/03 @ 102,
5.300% 05/01/08......... A1 AA 516
1,000 Cartersville, Georgia,
Development Authority,
Sewer Facilities Revenue
Refunding, (Anheuser-
Busch Companies, Inc.
Project) Series 1997,
AMT,
6.125% 05/01/27......... A1 A+ 1,000
500 Columbia County, Georgia,
School District, GO,
Series 1994A, (MBIA
Insured),
6.250% 04/01/13......... Aaa AAA 533
1,000 De Kalb County, Georgia,
Development Authority,
Revenue, (Emory
University Project)
Series 1994A,
6.000% 10/01/14......... Aa1 AA 1,034
1,000 DeKalb County, Georgia, GO
Refunding, Series 1993,
5.250% 01/01/20......... Aa1 AA+ 946
1,000 Effingham County, Georgia,
Development Authority,
Solid Waste Disposal
Revenue, (Fort James
Corporation Project)
Series 1998, AMT,
5.625% 07/01/18......... Baa2 BBB- 892
500 Fayette County, Georgia,
School District, GO,
Series 1994,
6.125% 03/01/15......... AA AA 530
1,000 Forsyth County, Georgia,
School District, GO,
Series 1999,
6.000% 02/01/15......... Aa2 AA- 1,053
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Joseph Hospital Project)
Series 1994,
5.500% 10/01/14......... Aaa A $ 1,008
500 Fulton County, Georgia,
Development Authority,
Revenue, (Clark Atlanta
University Project)
Series 1995, (CONNIE LEE
Insured),
5.125% 01/01/10......... BAa3 AAA 498
1,000 Georgia State, GO, Series
1999D,
5.800% 11/01/13......... Aaa AAA 1,056
1,330 Georgia State, Housing and
Finance Authority,
Single-Family Mortgage
Revenue, Series 1998B-3,
4.400% 06/01/17......... NR AAA 1,300
1,080 Georgia State, Housing and
Finance Authority,
Single-Family Mortgage
Revenue, Series 1999B-2,
6.100% 06/01/31......... NR AAA 1,083
500 Georgia State, Tollway
Authority, Revenue
Refunding, (Georgia 400
Project) Series 1998,
4.500% 07/01/11......... Aaa AAA 469
1,000 Georgia, George L. Smith
II World Congress Center
Authority, Revenue
Refunding, (Domed
Stadium Project) Series
2000, AMT, (MBIA
Insured),
6.000% 07/01/05......... Aaa AAA 1,042
500 Hall County, Georgia,
School District, GO
Refunding, Series 1997,
(State Aid Withholding),
4.500% 11/01/14......... Aa2 NR 443
1,000 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, Prerefunded
07/01/07 @ 102, (AMBAC
Insured),
6.000% 07/01/29......... Aaa AAA 1,017
500 Lawrenceville, Georgia,
Housing Authority,
Multi-Family Housing
Revenue, (Knollwood
Park, LP Project) Series
1997, AMT, (FNMA COLL),
Mandatory Put 06/01/15 @
100,
6.250% 12/01/29......... NR AAA 510
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
147
<PAGE> 152
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 500 Peach County, Georgia,
School District, GO,
Series 1994, (State Aid
Withholding, MBIA
Insured),
6.500% 02/01/08......... Aaa AAA $ 547
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue Refunding,
(Mercer University
Project) Series 1999A,
5.250% 10/01/20......... A3 NR 900
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue Refunding,
(Mercer University
Project) Series 1999A,
5.375% 10/01/29......... A3 NR 893
1,000 Roswell, Georgia, GO,
Series 1995,
5.600% 02/01/10......... Aa2 AAA 1,027
500 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue Refunding,
(Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @
102,
7.000% 01/01/23......... Ba1 BB 536
450 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue, (St. Joseph's
Hospital Project) Series
1993, Prerefunded
07/01/03 @ 102,
6.125% 07/01/12......... A3 NR 474
1,000 Savannah, Georgia,
Hospital Authority,
Revenue, (St.
Josephs-Candler Health
Systems Project) Series
1998B, (FSA Insured),
5.250% 07/01/10......... Aaa NR 999
500 Savannah, Georgia, Water
and Sewer Improvement
Revenue Refunding,
Series 1993,
5.100% 12/01/10......... Aa3 AA- 497
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 500 Union County, Georgia,
Housing Authority,
Multi-Family Housing
Revenue Refunding,
(Hidden Lake Apartments
Ltd. Project) Series
1994A, (FHA/FNMA COLL),
7.125% 12/01/25......... Aaa NR $ 523
1,000 White County, Georgia,
Industrial Development
Authority, Revenue
Refunding, (Springs
Industries, Inc.
Project) Series 1992,
6.850% 06/01/10......... NR BBB+ 1,013
-------
23,781
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $23,430).......................... 23,781
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 12.6%
(Cost $3,173)
3,173 Nations Municipal Reserves#............ 3,173
-------
TOTAL INVESTMENTS (Cost
$26,603*)..................... 106.7% 26,954
-------
OTHER ASSETS AND LIABILITIES
(NET)......................... (6.7)%
Interest receivable.................... $ 451
Receivable from investment advisor..... 31
Payable for Fund shares redeemed....... (26)
Administration fee payable............. (4)
Shareholder servicing and
distribution fees payable............ (9)
Distributions payable.................. (65)
Payable for investment securities
purchased............................ (1,992)
Accrued Trustees'/Directors' fees
and expenses......................... (17)
Accrued expenses and other
liabilities.......................... (61)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ (1,692)
-------
NET ASSETS...................... 100.0% $25,262
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
148
<PAGE> 153
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 49
Accumulated net realized loss on
investments sold..................... (969)
Net unrealized appreciation of
investments.......................... 351
Paid-in capital........................ 25,831
-------
NET ASSETS............................. $25,262
=======
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($13,064,179 / 1,370,790 shares
outstanding)......................... $9.53
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($1,852,650 / 194,361
shares outstanding).................. $9.53
=====
Maximum sales charge................... 4.75%
Maximum offering price per share....... $10.01
INVESTOR B SHARES:
Net asset value and offering price per
share** ($10,285,489 / 1,079,044
shares outstanding).................. $9.53
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($60,045 / 6,298 shares
outstanding)......................... $9.53
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $351 on
investment securities was comprised of gross appreciation of $599 and gross
depreciation of $248 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $26,603.
** 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.
Nations Georgia Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 10.72%
Housing 13.14%
Education 12.27%
Cash 11.71%
SEE NOTES TO FINANCIAL STATEMENTS.
149
<PAGE> 154
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.3%
MARYLAND -- 91.8%
$1,000 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1991B, 6.200%
04/15/03............... Aa1 AA+ $ 1,039
1,000 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1993, 5.125%
07/15/08............... Aa2 AA+ 1,008
1,000 Baltimore County,
Maryland, Consolidated
Public Improvement GO,
Series 1991, 6.100%
07/01/01............... Aaa AAA 1,021
1,375 Baltimore County,
Maryland, Metropolitan
District, Special
Assignment GO
Refunding, Series 1992,
5.750% 05/01/02........ Aaa AAA 1,406
1,000 Baltimore County,
Maryland, Metropolitan
District, Special
Assignment GO
Refunding, Series 1992,
5.800% 05/01/03........ Aaa AAA 1,032
1,720 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1991C, (FGIC Insured),
6.200% 10/15/02........ Aaa AAA 1,783
1,075 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1991C, (FGIC Insured),
6.375% 10/15/07........ Aaa AAA 1,169
1,000 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1993A, (AMBAC Insured),
5.300% 10/15/06........ Aaa AAA 1,013
1,740 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1997A, (FGIC Insured),
5.300% 10/15/16........ Aaa AAA 1,702
1,000 Baltimore, Maryland,
Convention Center
Revenue Refunding,
Series 1998, (MBIA
Insured), 5.000%
09/01/06............... Aaa AAA 1,005
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,725 Baltimore, Maryland,
Exchanged Revenue,
Series 1996A, (FGIC
Insured), 5.900%
07/01/10............... Aaa AAA $ 1,837
1,000 Baltimore, Maryland, GO,
Series 1989B, (MBIA
Insured), 7.000%
10/15/04............... Aaa AAA 1,087
1,000 Baltimore, Maryland, GO,
Series 1989B, (MBIA
Insured), 7.050%
10/15/07............... Aaa AAA 1,127
1,750 Baltimore, Maryland, Port
Facilities Revenue,
(E.I. duPont de Nemours
Project) Series 1985,
6.500% 12/01/10........ Aa3 AA- 1,848
1,000 Baltimore, Maryland,
Revenue Refunding,
(Wastewater Projects)
Series 1993A, (MBIA
Insured), 5.100%
07/01/04............... Aaa AAA 1,012
1,000 Baltimore, Maryland,
Revenue Refunding,
(Wastewater Projects)
Series 1994A, (FGIC
Insured), 5.000%
07/01/22............... Aaa AAA 911
1,000 Baltimore, Maryland,
Revenue Refunding,
(Wastewater Projects)
Series 1994A, (FGIC
Insured), 5.000%
07/01/24............... Aaa AAA 907
1,000 Baltimore, Maryland,
Water Utilities Revenue
Refunding, (Water
Projects) Series 1990A,
(MBIA Insured),
Prerefunded 07/01/00 @
102, 6.950% 07/01/02... Aaa AAA 1,027
500 Carroll County, Maryland,
Consolidated Public
Improvement GO, Series
1990, Prerefunded
10/01/00 @ 102, 6.900%
10/01/02............... Aaa AA 517
1,350 Carroll County, Maryland,
Consolidated Public
Improvement GO, Series
1991, 6.000%
11/01/00............... Aa3 AA 1,365
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
150
<PAGE> 155
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Cecil County, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1993,
(FGIC Insured), 5.300%
12/01/00............... Aaa AAA $ 1,008
1,810 Charles County, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1992,
(AMBAC Insured), 5.900%
01/15/03............... Aaa AAA 1,865
750 Charles County, Maryland,
Consolidated Public
Improvement GO, Series
1991, Prerefunded
06/01/01 @ 102, 6.450%
06/01/04............... Aaa AA 782
2,135 Frederick County,
Maryland, GO Refunding,
Series 1993, 5.350%
07/01/05............... AA AA 2,178
1,000 Frederick County,
Maryland, GO, Series
1991B, 6.300%
07/01/06............... Aa2 AA 1,048
2,000 Frederick, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1992,
(FGIC Insured), 5.750%
12/01/01............... Aaa AAA 2,040
2,240 Frederick, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1992,
(FGIC Insured), 6.000%
12/01/05............... Aaa AAA 2,342
600 Harford County, Maryland,
GO, Series 1991,
Prerefunded 12/01/00 @
102, 6.100% 12/01/04... Aaa AAA 619
920 Harford County, Maryland,
GO, Series 1997, 5.500%
12/01/07............... Aa2 AA 955
1,455 Harford County, Maryland,
Public Improvement GO,
Series 1992, 5.300%
09/01/03............... Aa2 AA 1,484
1,545 Howard County, Maryland,
Consolidated Public
Improvement GO
Refunding, Series
1993A, 5.000%
08/15/03............... Aaa AAA 1,560
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 20 Howard County, Maryland,
Consolidated Public
Improvement GO,
Prerefunded, Series
1993A, Prerefunded
08/15/05 @ 100, 5.250%
08/15/06............... Aaa AAA $ 20
1,500 Howard County, Maryland,
Consolidated Public
Improvement GO, Series
2000A, 5.250%
02/15/16(a)............ Aaa AAA 1,473
2,000 Howard County, Maryland,
Consolidated Public
Improvement GO, Series
2000A, 5.250%
02/15/18(a)............ Aaa AAA 1,939
1,000 Howard County, Maryland,
Metropolitan District,
GO Refunding, Series
1991B, 6.000%
08/15/03............... Aaa AAA 1,040
1,980 Howard County, Maryland,
Public Improvement GO,
Unrefunded Balance,
Series 1993A, 5.250%
08/15/06............... Aaa AAA 2,016
605 Laurel, Maryland, GO
Refunding, Series
1991A, (MBIA Insured),
6.300% 07/01/00........ Aaa AAA 608
1,530 Laurel, Maryland, Public
Improvement GO
Refunding, 1996A, (FGIC
Insured), 5.000%
10/01/11............... Aaa AAA 1,509
815 Maryland State Economic
Development
Corporation, Student
Housing Revenue, Series
1999A, 6.000%
06/01/19............... Baa3 NR 774
1,200 Maryland State,
Certificates of
Participation
Refunding, (State
Highway and Motor
Vehicle Administration
Project) Series 1992,
5.700% 06/01/01........ Aa3 AA- 1,217
1,200 Maryland State,
Certificates of
Participation
Refunding, (State
Highway and Motor
Vehicle Administration
Project) Series 1992,
5.800% 06/01/02........ Aa3 AA- 1,225
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
151
<PAGE> 156
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,410 Maryland State,
Certificates of
Participation, Revenue,
(Aviation
Administration
Facilities Project)
Series 1999, AMT,
4.750% 05/01/07........ Aa3 AA $ 1,382
1,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1997-1, (MHF/FHA
Insured), 4.950%
04/01/07............... Aa2 NR 989
2,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1998-1, AMT,
5.150% 04/01/18........ Aa2 NR 1,830
4,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1998-3, AMT,
4.500% 04/01/08........ Aa2 NR 3,787
1,685 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1998-3, AMT,
4.700% 04/01/10........ Aa2 NR 1,590
3,250 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999A, AMT,
5.350% 07/01/41........ Aa2 NR 2,781
2,410 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999D, AMT,
5.375% 09/01/24........ Aa2 NR 2,181
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999H, AMT,
6.000% 09/01/17........ Aa2 NR $ 2,018
3,900 Maryland State, Community
Development
Administration,
Development Revenue,
(Lexington Terrace
Senior Housing, LP
Project) Series 1998B,
AMT, 3.900% 10/01/02... Aaa NR 3,825
3,000 Maryland State, Community
Development
Administration,
Development Revenue,
(Lexington Terrace
Townhomes, LP Project)
Series 1998A, AMT,
3.900% 10/01/02........ Aaa NR 2,941
1,250 Maryland State,
Department of
Transportation,
Consolidated
Transportation Revenue,
Series 1991,
Prerefunded 09/01/00 @
100.75, 6.100%
09/01/01............... Aaa AAA 1,269
950 Maryland State, Economic
Development
Corporation, Student
Housing Revenue, Series
1999A, 5.600%
06/01/10............... Baa3 NR 930
1,100 Maryland State, GO
Refunding, Series
1990-3, Prerefunded
07/15/00 @ 101.5,
6.800% 07/15/04........ Aaa AAA 1,125
2,700 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.250% 07/01/04........ Aa2 AA 2,742
1,500 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.400% 07/01/06........ Aa2 AA 1,531
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
152
<PAGE> 157
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$3,050 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.500% 07/01/07........ Aa2 AA $ 3,121
1,000 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue Refunding,
(University of Maryland
Medical Systems
Project) Series 1993,
(FGIC Insured), 5.200%
07/01/04............... Aaa AAA 1,014
3,135 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Hospital
Charity Obligation
Group) Series 1997D,
Mandatory Put 11/01/03
@ 100, 4.600%
11/01/26............... Aaa NR 3,121
815 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Howard County
General Hospital
Project) Series 1993,
5.125% 07/01/03........ Aaa NR 819
1,000 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Howard County
General Hospital
Project) Series 1993,
5.500% 07/01/13........ Aaa NR 999
1,000 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Howard County
General Hospital
Project) Series 1993,
5.500% 07/01/21........ Aaa NR 989
1,000 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Johns Hopkins
Hospital Redevelopment
Project) Series 1979,
5.750% 07/01/09........ Aaa AAA 1,052
1,000 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Johns Hopkins
Medicine Project)
Series 1998, 5.000%
07/01/29............... Aaa AAA 879
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$4,000 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Johns Hopkins
University Project)
Series 1999, 6.000%
07/01/39............... Aa2 AA $ 4,057
500 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (Sinai
Hospital of Baltimore
Project) Series 1990,
(AMBAC Insured),
Prerefunded 07/01/00 @
102, 7.300% 07/01/05... Aaa AAA 514
1,250 Maryland State, Health
and Higher Education
Facilities Authority,
Revenue, (The Johns
Hopkins Hospital
Project) Series 1990,
Prerefunded 07/01/00 @
102, 7.000% 07/01/01... Aaa AAA 1,284
1,500 Maryland State, State and
Local Facilities Loan
GO, Series 1995-2,
5.000% 10/15/04........ Aaa AAA 1,516
1,550 Maryland State, State and
Local Facilities Loan
GO, Series 1996-2,
5.250% 06/15/11........ Aaa AAA 1,571
3,000 Maryland State, State and
Local Facilities Loan
GO, Series 1996-3,
5.000% 10/15/06........ Aaa AAA 3,024
1,170 Maryland State,
Transportation
Authority, Revenue,
(Transportation
Facilities Project)
Series 1978, 6.625%
07/01/03............... Aaa AAA 1,204
245 Maryland State,
Transportation
Authority, Special
Obligation Revenue,
(Baltimore -
Washington, D.C.
International Airport
Project) Series 1994A,
AMT, (FGIC Insured),
6.400% 07/01/19........ Aaa AAA 246
2,300 Maryland State,
Transportation
Authority,
Transportation Revenue,
Series 1991, 6.500%
07/01/04............... A1 A+ 2,394
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
153
<PAGE> 158
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$4,000 Maryland State,
Transportation
Authority,
Transportation Revenue,
Series 1992, 5.700%
07/01/05............... A1 A+ $ 4,153
2,800 Maryland State,
Transportation
Authority,
Transportation Revenue,
Series 1992, 5.800%
07/01/06............... A1 A+ 2,932
500 Maryland, National
Capital Park and
Planning Commission,
GO, Series 1990J-2,
Prerefunded 07/01/00 @
102, 6.900% 07/01/02... Aa2 AA 513
2,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series
1992A, 5.600%
07/01/04............... Aaa AAA 2,065
1,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series
1992A, 5.750%
07/01/06............... Aaa AAA 1,047
500 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1991A,
Prerefunded 04/01/01 @
102, 6.700% 04/01/06... Aaa AAA 522
3,500 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1993A, 4.900%
10/01/07............... Aaa AAA 3,503
1,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1997A, 5.375%
05/01/08............... Aaa AAA 1,029
3,000 Montgomery County,
Maryland, GO, Series
1991, Prerefunded
10/01/01 @ 102, 6.100%
10/01/05............... Aaa AAA 3,126
1,000 Montgomery County,
Maryland, GO, Series
1991, Prerefunded
10/01/01 @ 102, 6.125%
10/01/07............... Aaa AAA 1,043
865 Montgomery County,
Maryland, Housing
Opportunities
Commission,
Single-Family Mortgage
Revenue, Series 1997A,
5.400% 07/01/08........ Aa2 NR 876
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,500 Northeast Maryland, Solid
Waste Disposal
Authority Revenue,
(Montgomery County
Resource Recreation
Project) Series 1993A,
6.000% 07/01/07........ A2 NR $ 1,543
1,535 Northeast Maryland, Solid
Waste Disposal
Authority, Southwest
Research Recovery
Facilities Revenue
Refunding,
(Wheelabrator
Technologies Project)
Series 1993, (MBIA
Insured), 7.000%
01/01/01............... Aaa AAA 1,566
630 Ocean City, Maryland, GO
Refunding, Series 1991,
(MBIA Insured),
Prerefunded 11/01/01 @
102, 6.100% 11/01/04... Aaa AAA 657
1,170 Ocean City, Maryland, GO,
Series 1997, (MBIA
Insured), 5.000%
12/01/14............... Aaa AAA 1,131
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series
1992A, (MBIA Insured),
5.400% 03/01/02........ Aaa AAA 1,014
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1991,
6.500% 07/01/02........ A1 AA- 1,039
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series
1992A, (MBIA Insured),
5.300% 03/01/01........ Aaa AAA 1,010
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1992, 5.600%
01/15/03............... A1 AA- 1,023
1,800 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1992, 5.900%
01/15/06............... A1 AA- 1,861
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
154
<PAGE> 159
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,300 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1999, (FSA
Insured), 5.125%
10/01/16............... Aaa AAA $ 2,222
1,000 Prince Georges County,
Maryland, PCR
Refunding, (Potomac
Electric Power Project)
Series 1995, 5.750%
03/15/10............... A1 A 1,043
2,000 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993,
(FSA Insured), 5.100%
06/15/05............... Aaa AAA 2,012
800 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue,
Series 1990, 6.600%
06/30/00............... Aaa AAA 805
740 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue,
Series 1990,
Prerefunded 06/30/00 @
102, 6.800% 06/30/04... Aaa AAA 760
1,000 Rockville, Maryland, GO
Refunding, Series 1993,
4.750% 04/15/05........ Aa1 AA+ 998
1,000 St. Mary's County,
Maryland, GO, Series
1995, (MBIA Insured),
5.700% 03/01/08........ Aaa AAA 1,045
2,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue Refunding,
Series 1993C, 4.900%
10/01/08............... Aa3 AA+ 1,982
2,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1991A,
Prerefunded 04/01/00 @
102, 6.500% 04/01/06... NR AAA 2,040
745 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1992A,
6.000% 02/01/04........ Aa3 AA+ 770
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1992A,
6.300% 02/01/08........ Aa3 AA+ $ 1,037
1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1992A,
6.300% 02/01/10........ Aa3 AA+ 1,037
1,020 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1996A,
5.600% 04/01/13........ Aa3 AA+ 1,042
3,115 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1996A,
5.600% 04/01/14........ Aa3 AA+ 3,167
1,000 Washington County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1993,
(FGIC Insured), 5.250%
01/01/06............... Aaa AAA 1,015
500 Washington County,
Maryland, GO, Series
1990, 6.400%
12/01/00............... A1 A+ 507
1,000 Washington County,
Maryland, Sanitation
District, GO Refunding,
Series 1993F, (FGIC
Insured), 5.250%
01/01/06............... Aaa AAA 1,015
1,260 Washington Suburban
Sanitation District
Authority, Maryland,
General Construction
GO, Series 1991-1,
Prerefunded 06/01/01 @
102, 6.750% 06/01/05... Aaa AAA 1,318
1,000 Washington Suburban
Sanitation District
Authority, Maryland,
General Construction
GO, Series 1997, 5.125%
06/01/21............... Aa1 AA 928
3,440 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply GO
Refunding, Series 1993,
5.100% 12/01/07........ Aa1 AA 3,472
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
155
<PAGE> 160
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,010 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply GO, Series
1992, Prerefunded
06/01/02 @ 102, 5.800%
06/01/03............... Aa1 AA $ 2,093
1,000 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply GO, Series
1993, 5.000%
06/01/03............... Aa1 AA 1,010
1,355 Wicomico County,
Maryland, Public
Improvement GO, Series
1997, (MBIA Insured),
4.900% 12/01/11........ Aaa AAA 1,316
1,425 Wicomico County,
Maryland, Public
Improvement GO, Series
1997, (MBIA Insured),
5.000% 12/01/12........ Aaa AAA 1,394
--------
175,924
--------
ALABAMA -- 1.6%
3,000 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1992, 7.000%
06/01/22............... Baa1 BBB 3,046
--------
COLORADO -- 0.7%
3,800 Public Highway Authority
of Colorado, Revenue,
Capital Appreciation,
Series 1997B, (MBIA
Insured), 5.250%+
09/01/18............... Aaa AAA 1,298
--------
DISTRICT OF COLUMBIA -- 1.8%
3,500 Washington, District of
Columbia, Metropolitan
Area Transportation
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured), 5.000%
07/01/06............... Aaa AAA 3,503
--------
TEXAS -- 1.0%
2,000 Texas State, Water
Development Board,
Revenue, Series 1997,
5.000% 07/15/12........ Aa1 AAA 1,941
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- 1.4%
$3,000 Virginia State,
Transportation Board
Authority,
Transportation Contract
Revenue, (Northern
Virginia Transportation
District Project)
Series 1996A, 5.125%
05/15/21............... Aa1 AA $ 2,742
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $187,126)........ 188,454
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.1%
(Cost $2,030)
2,030 Nations Municipal Reserves#............ 2,030
--------
TOTAL INVESTMENTS
(Cost $189,156*).............. 99.4% 190,484
--------
OTHER ASSETS AND LIABILITIES
(NET)......................... 0.6%
Cash................................... $ 1
Receivable for investment
securities sold...................... 2,036
Receivable for Fund shares sold........ 298
Dividends receivable................... 28
Interest receivable.................... 3,319
Payable for Fund shares redeemed....... (220)
Investment advisory fee payable........ (13)
Administration fee payable............. (33)
Shareholder servicing and
distribution fees payable............ (9)
Distributions payable.................. (697)
Payable for investment securities
purchased............................ (3,412)
Accrued Trustees'/Directors' fees
and expenses......................... (21)
Accrued expenses and other
liabilities.......................... (92)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 1,185
--------
NET ASSETS...................... 100.0% $191,669
========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold..................... $ (1,697)
Net unrealized appreciation of
investments.......................... 1,328
Paid-in capital........................ 192,038
--------
NET ASSETS............................. $191,669
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
156
<PAGE> 161
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($169,218,007 / 15,987,857 shares
outstanding)......................... $10.58
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($16,454,572 / 1,554,726
shares outstanding).................. $10.58
======
Maximum sales charge................... 3.25%
Maximum offering price per share....... $10.94
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,661,878 / 534,980 shares
outstanding)......................... $10.58
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($335,015 / 31,653 shares
outstanding)......................... $10.58
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $1,328 on
investment securities was comprised of gross appreciation of $3,240 and gross
depreciation of $1,912 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$189,156.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# 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) Security purchased on a "when-issued" basis.
Nations Maryland Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
FGIC 10.52%
Nations Maryland Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Housing Revenue 12.87%
SEE NOTES TO FINANCIAL STATEMENTS.
157
<PAGE> 162
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 101.2%
MARYLAND -- 91.7%
$ 500 Anne Arundel County,
Maryland, Consolidated
General Improvement GO
Refunding, Series 1995,
5.300% 04/01/10......... Aa1 AA+ $ 508
500 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1993, 5.250%
07/15/11................ Aa2 AA+ 503
1,000 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1998B, (FGIC Insured),
6.500% 10/15/08......... Aaa AAA 954
250 Baltimore, Maryland,
Convention Center
Revenue, Series 1994,
(FGIC Insured),
Prerefunded 09/01/04 @
100, 6.150% 09/01/19.... Aaa AAA 263
250 Baltimore, Maryland, Port
Facilities Revenue,
(E.I. duPont de Nemours
Project) Series 1985,
6.500% 12/01/10......... Aa3 AA- 264
250 Cumberland, Maryland, GO
Refunding, Series 1994A,
(FGIC Insured), 5.250%
05/01/21................ Aaa AAA 236
1,000 Harford County, Maryland,
GO, Series 1997, 5.500%
12/01/07................ Aa2 AA 1,038
1,900 Howard County, Maryland,
Consolidated Public
Improvement GO, Series
2000A, 5.250%
02/15/17(a)............. Aaa AAA 1,855
1,000 Maryland State,
Certificates of
Participation, Series
1999, AMT, 4.750%
05/01/06................ Aa3 AA 986
500 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development,
Multi-Family Revenue,
(Auburn Manor
Apartments, LP Project)
Series 1998A, AMT, (FNMA
COLL), 5.250%
10/01/19................ Aaa NR 452
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 500 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Residential Project)
Series 1998B, AMT,
4.950% 09/01/11......... Aa2 NR $ 477
810 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Residential Project)
Series 2000A, 5.500%
09/01/12................ Aa2 NR 811
500 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999A, AMT,
5.350% 07/01/41......... Aa2 NR 428
1,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999H, AMT,
6.000% 09/01/17......... Aa2 NR 1,009
500 Maryland State, Community
Development
Administration, Housing
Development Revenue,
Series 1998A, AMT,
5.500% 07/01/30......... Aa2 NR 450
495 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Collegiate Housing
Project) Series 1999A,
5.300% 06/01/08......... Baa3 NR 479
575 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Collegiate Housing
Project) Series 1999A,
5.600% 06/01/11......... Baa3 NR 559
500 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Salisbury Collegiate
Housing Project) Series
1999A, 6.000%
06/01/30................ Baa3 NR 462
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
158
<PAGE> 163
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 200 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Greater Baltimore
Medical Center Project)
Series 1993, (FGIC
Insured), 5.000%
07/01/13................ Aaa AAA $ 193
300 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.600% 07/01/09......... Aa2 AA 307
290 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Memorial Hospital of
Cumberland Project)
Series 1992, Prerefunded
07/01/04 @ 100, 6.500%
07/01/10................ A AA+ 307
110 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Anne Arundel
Medical Center Project)
Series 1993, (AMBAC
Insured), 5.250%
07/01/13................ Aaa AAA 109
510 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (College of
Notre Dame Project)
Series 1998, (MBIA
Insured), 4.600%
10/01/14................ Aaa AAA 465
460 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (College of
Notre Dame Project)
Series 1998, (MBIA
Insured), 5.300%
10/01/18................ Aaa AAA 450
100 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Frederick
Memorial Hospital
Project) Series 1993,
(FGIC Insured),
5.250% 07/01/13......... Aaa AAA 100
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,710 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Hospital
Charity Obligation
Group) Series 1997D,
Mandatory Put 11/01/03 @
100, 4.600% 11/01/26.... Aaa NR $ 1,704
1,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (John Hopkins
Hospital Redevelopment
Project) Series 1979,
5.750% 07/01/09......... Aaa AAA 1,052
2,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Johns Hopkins
University Project)
Series 1999, 6.000%
07/01/39................ Aa2 AA 2,029
330 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Loyola College
Project) Series 1999,
5.000% 10/01/39......... A2 A 281
425 Maryland State, Industrial
Development Finance
Authority, Revenue,
(American Center for
Physics Project) Series
1992, (GTY-AGMT), 6.375%
01/01/12................ NR BBB 429
500 Maryland State, Stadium
Authority, Lease
Revenue, (Ocean City
Convention Center
Project) Series 1995,
5.375% 12/15/13......... Aa2 AA 503
1,000 Maryland State, State and
Local Facilities Loan
GO, Series 1999-2,
5.000% 07/15/07......... Aaa AAA 1,007
500 Maryland State,
Transportation
Authority, Revenue,
(Transportation
Facilities Project)
Series 1978, 6.800%
07/01/16................ Aaa AAA 562
300 Maryland State,
Transportation
Authority, Revenue,
(Transportation
Facilities Project)
Series 1992, 5.750%
07/01/15................ A1 A+ 303
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
159
<PAGE> 164
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 30 Maryland State,
Transportation
Authority, Special
Obligation Revenue,
(Baltimore - Washington,
D.C. International
Airport Project) Series
1994A, AMT, (FGIC
Insured), 6.400%
07/01/19................ Aaa AAA $ 30
200 Maryland, Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series 1992A,
6.550% 09/01/14......... Aa2 AA 209
250 Maryland, Water Quality
Financing
Administration,
Revolving Loan Fund
Revenue, Series 1993A,
5.400% 09/01/10......... Aa2 AA 253
1,500 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1992A, 5.800%
07/01/07................ Aaa AAA 1,581
250 Montgomery County,
Maryland, Housing
Opportunities
Commission, Multi-Family
Mortgage Revenue, Series
1994A, 6.000%
07/01/14................ Aaa NR 252
935 Northeast Maryland, Solid
Waste Disposal
Authority, Revenue,
(Ogden Martin
Systems - Montgomery
County Residential
Receivables Project)
Series 1993A, AMT,
6.300% 07/01/16......... A2 NR 954
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1999, (FSA
Insured), 5.125%
10/01/16................ Aaa AAA 966
500 Prince Georges County,
Maryland, PCR Refunding,
(Potomac Electric Power
Project) Series 1995,
5.750% 03/15/10......... A1 A 522
500 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993,
(FSA Insured), 5.200%
06/15/06................ Aaa AAA 506
500 Prince Georges County,
Maryland, Stormwater
Management, GO, Series
1993, 5.500% 03/15/13... Aa3 AA 505
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,500 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1996A,
5.600% 04/01/13......... Aa3 AA+ $ 2,554
1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1997A,
5.125% 04/01/13......... Aa3 AA+ 983
200 Washington County,
Maryland, Public
Improvement GO, Series
1995, (MBIA Insured),
5.800% 01/01/15......... Aaa AAA 205
320 Washington County,
Maryland, Sanitation
District, GO Refunding,
Series 1993F, (FGIC
Insured), 5.000%
01/01/04................ Aaa AAA 322
1,290 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA
Insured),
4.800% 12/01/10......... Aaa AAA 1,248
-------
32,625
-------
DISTRICT OF COLUMBIA -- 1.6%
200 Washington, District of
Columbia, Metropolitan
Area Transportation
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured), 4.900%
01/01/05................ Aaa AAA 200
350 Washington, District of
Columbia, Metropolitan
Area Transportation
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured), 6.000%
07/01/10................ Aaa AAA 374
-------
574
-------
GUAM -- 1.6%
600 Guam, Government GO,
Series 1993A, 5.200%
11/15/08................ NR BBB- 578
-------
MISSISSIPPI -- 1.4%
500 Warren County,
Mississippi,
Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A, 6.700%
08/01/18................ A3 BBB+ 506
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
160
<PAGE> 165
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
PUERTO RICO -- 2.4%
$ 500 Puerto Rico, Electric
Power Authority, Power
Revenue Refunding,
Series 1995Y, (MBIA
Insured), 6.500%
07/01/06................ Aaa AAA $ 546
325 Puerto Rico, Housing Bank
and Finance Agency,
Single-Family Mortgage
Revenue, (Affordable
Housing Mortgage-
Portfolio I) Series
1995, AMT, (GNMA/FNMA/
FHLMC COLL), 6.100%
10/01/15................ Aaa AAA 326
-------
872
-------
TEXAS -- 2.5%
1,000 Houston, Texas,
Independent School
District, GO Refunding,
Series 1999A, (PSF-GTD
Insured), 5.000%
02/15/24................ Aaa AAA 885
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $35,858).......................... 36,040
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.8%
(Cost $988)
988 Nations Municipal Reserves#........... 988
--------
TOTAL INVESTMENTS
(Cost $36,846*).............. 104.0% 37,028
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (4.0)%
Receivable for investment
securities sold..................... $ 497
Interest receivable................... 623
Receivable from investment
advisor............................. 24
Payable for Fund shares redeemed...... (1)
Administration fee payable............ (6)
Shareholder servicing and
distribution fees payable........... (14)
Distributions payable................. (83)
Payable for investment securities
purchased........................... (2,361)
Accrued Trustees'/Directors' fees
and expenses........................ (17)
Accrued expenses and other
liabilities......................... (74)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (1,412)
--------
NET ASSETS..................... 100.0% $ 35,616
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 13
Accumulated net realized loss on
investments sold.................... (710)
Net unrealized appreciation of
investments......................... 182
Paid-in capital....................... 36,131
--------
NET ASSETS............................ $ 35,616
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($17,586,943 / 1,844,800 shares
outstanding)........................ $9.53
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($1,780,636 / 186,778
shares outstanding)................. $9.53
=====
Maximum sales charge.................. 4.75%
Maximum offering price per share...... $10.01
INVESTOR B SHARES
Net asset value and offering price per
share** ($16,033,869 / 1,681,934
shares outstanding)................. $9.53
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($214,079 / 22,464 shares
outstanding)........................ $9.53
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $182 on
investment securities was comprised of gross appreciation of $635 and gross
depreciation of $453 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $36,846.
** 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) Security purchased on a "when-issued" basis.
Nations Maryland Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Education Revenue 22.22%
Housing Revenue 12.61%
SEE NOTES TO FINANCIAL STATEMENTS.
161
<PAGE> 166
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 94.9%
NORTH CAROLINA -- 89.1%
$1,000 Buncombe County, North
Carolina, GO Refunding,
Series 1993,
5.000% 03/01/03........ Aa2 AA $ 1,009
1,250 Buncombe County, North
Carolina, Metropolitan
Sewer District, Revenue
Refunding, Series
1991A, Prerefunded
07/01/01 @ 102,
6.750% 07/01/09........ Aaa NR 1,309
5 Buncombe County, North
Carolina, Metropolitan
Sewer District, Sewer
System Revenue,
Unrefunded Balance,
Series 1992B,
6.750% 07/01/16........ A NR 5
1,200 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
4.750% 07/01/05........ Aaa AAA 1,175
1,275 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
4.850% 07/01/06........ Aaa AAA 1,252
1,260 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
5.000% 07/01/07........ Aaa AAA 1,248
1,000 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
6.000% 07/01/24........ Aaa AAA 1,003
1,000 Charlotte, North
Carolina, GO Refunding,
Series 1993,
4.500% 02/01/03........ Aaa AAA 997
1,240 Charlotte, North
Carolina, Health Care
Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project)
Series 1992,
6.375% 01/01/09........ Aa3 AA 1,285
425 Charlotte, North
Carolina, Health Care
Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project)
Series 1992,
6.250% 01/01/20........ Aa3 AA 431
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 Charlotte, North
Carolina, Public
Improvement GO, Series
1990A, Prerefunded
10/01/00 @ 102,
6.900% 10/01/05........ Aaa AAA $ 1,033
1,800 Charlotte, North
Carolina, Public
Improvement GO, Series
1991, Prerefunded
02/01/01 @ 102,
6.500% 02/01/07........ Aaa AAA 1,869
1,000 Charlotte, North
Carolina, Water and
Sewer GO, Series 1994,
Prerefunded 02/01/04 @
102,
5.800% 02/01/16........ Aaa AAA 1,051
1,670 Charlotte, North
Carolina, Water and
Sewer GO, Series 1996,
5.500% 05/01/06........ Aaa AAA 1,721
1,855 Charlotte, North
Carolina, Water and
Sewer GO, Series 1998,
4.750% 02/01/12........ Aaa AAA 1,771
2,000 Charlotte-Mecklenburg
Hospital Authority,
Revenue, (Carolinas
Healthcare System
Project) Series 1997A,
5.000% 01/15/17........ Aa3 AA 1,812
4,500 Charlotte-Mecklenburg
Hospital Authority,
Revenue, (Carolinas
Healthcare System
Project) Series 1997A,
5.125% 01/15/22........ Aa3 AA 4,008
760 Charlotte-Mecklenburg
Hospital Authority,
Health Care Systems
Revenue, Series 1992,
Prerefunded 01/01/02 @
102,
6.375% 01/01/09........ Aa3 AA 795
705 Charlotte-Mecklenburg
Hospital Authority,
Health Care Systems
Revenue, Series 1992,
Prerefunded 01/01/02 @
102,
6.250% 01/01/20........ Aa3 AA 736
2,500 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC
Insured),
5.100% 06/01/01........ Aaa AAA 2,522
2,500 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC
Insured),
5.100% 06/01/02........ Aaa AAA 2,526
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
162
<PAGE> 167
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC
Insured),
5.100% 06/01/05........ Aaa AAA $ 1,013
2,000 Coastal Regional Solid
Waste Management
Authority, North
Carolina, Solid Waste
Disposal System
Revenue, Series 1992,
6.300% 06/01/04........ A BBB+ 2,100
500 Concord, North Carolina,
GO Refunding, Series
1992,
6.200% 06/01/05........ Aa2 AA- 521
1,000 Concord, North Carolina,
Utilities System
Revenue, Series 1993,
(MBIA Insured),
5.200% 12/01/02........ Aaa AAA 1,014
1,720 Durham and Wake County,
North Carolina, Special
Apartment District, GO
Refunding, Series 1992,
5.750% 04/01/03........ Aaa AAA 1,764
2,300 Durham and Wake County,
North Carolina, Special
Apartment District, GO
Refunding, Series 1993,
5.000% 04/01/03........ Aaa AAA 2,323
1,500 Durham County, North
Carolina, GO Refunding,
Series 1992, 5.200%
03/01/07............... Aaa AAA 1,534
2,000 Durham County, North
Carolina, GO, Series
1992, 5.750%
02/01/06............... Aaa AAA 2,070
2,000 Forsythe County, North
Carolina, GO Refunding,
Series 1993A,
4.750% 03/01/06........ Aaa AAA 1,992
1,000 Greensboro, North
Carolina, Combined
Enterprise Systems
Revenue, Series 1998A,
5.000% 06/01/18........ A1 AA- 918
2,000 Greenville, North
Carolina, Combined
Enterprise Revenue,
Series 1994,
6.000% 09/01/10........ A2 A+ 2,075
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$3,000 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Solid Waste Disposal
Revenue, (Champion
International
Corporation Project)
Series 1999,
6.400% 11/01/24........ Baa1 NR $ 2,963
1,000 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Solid Waste Disposal
Revenue, (Champion
International
Corporation Project)
Series 1993, AMT,
5.500% 10/01/18........ Baa1 BBB 888
1,000 Henderson County, North
Carolina, School and
Community College GO,
Series 1991,
6.500% 06/01/05........ A1 A+ 1,043
500 Henderson County, North
Carolina, School and
Community College GO,
Series 1991,
6.500% 06/01/08........ A1 A+ 521
1,250 High Point, North
Carolina, GO, Series
1990, Prerefunded
06/01/00 @ 102,
6.900% 06/01/04........ Aa3 AA 1,281
1,095 Iredell County, North
Carolina, GO, Series
1997, 4.750%
02/01/16............... Aa3 A+ 992
1,305 Johnston County, North
Carolina, GO, Series
2000, (FGIC Insured),
5.500% 03/01/12........ Aaa AAA 1,344
2,700 Johnston County, North
Carolina, GO, Series
2000, (FGIC Insured),
5.500% 03/01/16........ Aaa AAA 2,720
1,160 Lee County, North
Carolina, GO, Series
1992,
6.000% 02/01/06........ A1 A+ 1,204
750 Lower Cape Fear, North
Carolina, Water and
Sewer Authority,
Revenue, Series 1993,
AMT,
5.200% 03/01/04........ A2 BBB 753
1,000 Mecklenburg County, North
Carolina, GO, Series
1991, Prerefunded
04/01/01 @ 102,
6.200% 04/01/06........ Aaa AAA 1,039
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
163
<PAGE> 168
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 Mecklenburg County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Revenue Refunding,
(Fluor Corporation
Project) Series 1993,
5.250% 12/01/09........ NR A $ 998
1,195 Morganton, North
Carolina, Water and
Sewer GO, Series 1995,
(FGIC Insured),
5.700% 06/01/11........ Aaa AAA 1,248
2,220 New Hanover County, North
Carolina, GO, Series
1995, 5.500%
03/01/10............... Aa2 AA- 2,295
2,000 North Carolina State, GO,
Series 1992A,
6.100% 03/01/01........ Aaa AAA 2,035
4,000 North Carolina State, GO,
Series 1997A,
5.100% 03/01/06........ Aaa AAA 4,057
2,165 North Carolina, Eastern
Municipal Power
Authority, Revenue,
Series 1986A,
5.000% 01/01/17........ Aaa BBB 2,045
1,000 North Carolina,
Educational Facilities
Finance Agency,
Revenue, (Davidson
College Project) Series
1992,
5.100% 12/01/00........ NR AA 1,006
1,000 North Carolina,
Educational Facilities
Finance Agency,
Revenue, (Duke
University Project)
Series 1991C,
6.625% 10/01/08........ Aa1 AA+ 1,046
1,950 North Carolina, Housing
Finance Agency, Multi-
Family Housing Revenue
Refunding, Series
1992B, (FHA COLL),
6.900% 07/01/24........ Aa2 AA 2,034
1,000 North Carolina, Housing
Finance Agency,
Revenue, (Home
Ownership Project)
Series 1999A-6, AMT,
6.000% 01/01/16........ Aa2 AA 1,018
3,000 North Carolina, Housing
Finance Agency,
Revenue, Series
1999A-3, AMT,
5.150% 01/01/19........ Aa2 AA 2,727
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$4,030 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
(Home Ownership
Project) Series
1998A-1, AMT,
5.350% 01/01/17........ Aa2 AA $ 3,881
615 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1991R, (FHA
COLL),
6.350% 03/01/03........ Aa AA 630
615 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1991R, (FHA
COLL),
6.350% 09/01/03........ Aa AA 632
910 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1994Y,
6.300% 09/01/15........ Aa AA 930
3,000 North Carolina, Housing
Finance Agency, Series
1999A-5, AMT,
5.550% 01/01/19........ Aa2 AA 2,883
3,845 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding, (Novant
Health, Inc. Project)
Series 1998A, (MBIA
Insured),
5.000% 10/01/07........ Aaa AAA 3,831
2,605 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding, (Novant
Health, Inc. Project)
Series 1998A, (MBIA
Insured),
5.000% 10/01/08........ Aaa AAA 2,584
1,830 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding, (Novant
Health, Inc. Project)
Series 1998A, (MBIA
Insured),
5.100% 10/01/10........ Aaa AAA 1,808
2,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding,
(Presbyterian Health
Care Services Project)
Series 1993,
5.250% 10/01/04........ Aa AA 2,012
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
164
<PAGE> 169
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding,
(Presbyterian Health
Care Services Project)
Series 1993,
5.300% 10/01/05........ Aa AA $ 1,007
3,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding,
(Presbyterian Health
Care Services Project)
Series 1993,
5.500% 10/01/14........ Aa AA 2,968
3,640 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Carolina
Medicorp Inc. Project)
Series 1996,
5.100% 05/01/07........ A1 AA 3,609
2,450 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Carolina
Medicorp Inc. Project)
Series 1996,
5.250% 05/01/09........ A1 AA 2,436
2,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Duke
University Hospital
Project) Series 1996C,
5.250% 06/01/17........ Aa3 AA 1,890
2,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Gaston
Memorial Hospital
Project) Series 1995,
(AMBAC-TCRS Insured),
5.000% 02/15/05........ Aaa AAA 2,006
5,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Grace
Hospital, Inc. -
Morganton Project)
Series 1996, (AMBAC
Insured),
5.250% 10/01/16........ Aaa AAA 4,745
1,795 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.600% 08/15/07........ Baa1 NR 1,630
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,500 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Moore Regal
Hospital Project)
Series 1993,
5.200% 10/01/13........ Aa3 A+ $ 1,437
1,930 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Rex Hospital,
Inc. Project) Series
1993,
5.400% 06/01/02........ A1 A+ 1,944
1,620 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Rex Hospital,
Inc. Project) Series
1993, Prerefunded
06/01/03 @ 102,
5.600% 06/01/04........ Aaa A+ 1,687
3,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Rex Hospital,
Inc. Project) Series
1993, Prerefunded
06/01/03 @ 102,
6.250% 06/01/17........ Aaa A+ 3,180
1,000 North Carolina, Medical
Care Commission,
Hospital Revenue
Refunding, (Stanley
Memorial Hospital
Project) Series 1996,
(AMBAC Insured),
5.250% 10/01/06........ Aaa AAA 1,008
2,000 North Carolina, Municipal
Power Agency Number 1,
Revenue, Series 1992,
(MBIA-IBC Insured),
7.250% 01/01/07........ Aaa AAA 2,230
1,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding,
(Catawba Electric
Project) Series 1992,
(FGIC Insured),
5.500% 01/01/01........ Aaa AAA 1,009
1,000 North Carolina, State
Education Assistance
Authority, Revenue,
Series 1995A, AMT, (GTD
STD LNS),
5.300% 07/01/03........ A NR 1,007
1,625 Orange County, North
Carolina, GO, Series
1994, 5.500%
02/01/12............... Aa1 AA+ 1,671
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
165
<PAGE> 170
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$2,000 Piedmont Triad Airport
Authority, North
Carolina, Revenue
Refunding, Series
1990A, (MBIA Insured),
6.800% 07/01/05........ Aaa AAA $ 2,052
1,240 Pitt County, North
Carolina, Revenue
Refunding, (Pitt County
Memorial Hospital
Project) Series 1995,
5.375% 12/01/10........ Aaa NR 1,260
1,000 Raleigh, North Carolina,
Combined Enterprise
System Revenue, Series
1996,
5.250% 03/01/07........ Aa1 AA+ 1,017
1,910 Raleigh, North Carolina,
GO, Series 1996,
5.300% 06/01/16........ Aaa AAA 1,888
1,000 Randolph County, North
Carolina, Certificates
of Participation,
Series 2000, (FSA
Insured),
5.200% 06/01/12........ Aaa AAA 995
1,185 Randolph County, North
Carolina, Certificates
of Participation,
Series 2000, (FSA
Insured),
5.500% 06/01/14........ Aaa AAA 1,196
1,000 Randolph County, North
Carolina, Certificates
of Participation,
Series 2000, (FSA
Insured),
5.300% 06/01/13........ Aaa AAA 997
2,000 Randolph County, North
Carolina, GO, Series
1992, Prerefunded
05/01/02 @ 102,
6.250% 05/01/08........ Aa3 AA- 2,100
1,000 Robeson County, North
Carolina, Industrial
Facilities, PCR
Refunding, (Campbell
Soup Company Project)
Series 1991,
6.400% 12/01/06........ NR AA- 1,071
750 Rutherford County, North
Carolina, GO, Series
1991, (MBIA Insured),
6.400% 06/01/01........ Aaa AAA 767
1,000 Union County, North
Carolina, School
District, GO, Series
1991, Prerefunded
04/01/01 @ 101,
6.500% 04/01/03........ A1 AA- 1,032
500 Union County, North
Carolina, School
District, GO, Series
1992,
5.800% 03/01/05........ A1 AA- 517
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,690 University of North
Carolina, Chapel Hill,
Hospital Revenue
Refunding, Series 1999,
(AMBAC Insured),
5.250% 02/15/12........ Aaa AAA $ 1,687
1,000 University of North
Carolina, Chapel Hill,
University Revenue
Refunding, Series 1992,
5.400% 02/15/01........ Aa3 AA 1,010
1,000 University of North
Carolina, Chapel Hill,
University Revenue
Refunding, Series 1992,
5.500% 02/15/02........ Aa3 AA 1,014
1,000 University of North
Carolina, Charlotte,
Revenue Refunding,
(Housing and Dining
Systems Project) Series
1993M, (MBIA Insured),
4.800% 01/01/04........ Aaa AAA 997
3,500 University of North
Carolina, University
Utilities Systems
Revenue Refunding,
Series 1993,
5.200% 08/01/06........ Aa2 AA 3,546
1,000 University of North
Carolina, University
Utilities Systems
Revenue Refunding,
Series 1993,
5.000% 08/01/09........ Aa2 AA 1,000
1,600 University of North
Carolina, University
Utilities Systems
Revenue Refunding,
Series 1993,
5.000% 08/01/11........ Aa2 AA 1,585
1,000 Wake County, North
Carolina, GO Refunding,
Series 1993,
4.700% 04/01/05........ Aaa AAA 997
2,065 Wake County, North
Carolina, Hospital
Revenue, Series 1993,
(MBIA Insured),
5.125% 10/01/26........ Aaa AAA 1,927
1,000 Wake County, North
Carolina, Public
Improvement GO, Series
1994,
4.600% 02/01/06........ Aaa AAA 984
1,200 Wayne County, North
Carolina, GO Refunding,
Series 1993, (MBIA
Insured),
4.900% 04/01/05........ Aaa AAA 1,206
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
166
<PAGE> 171
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 Wilmington, North
Carolina, Public
Improvement GO, Series
1997A, (FGIC Insured),
5.000% 04/01/11........ Aaa NR $ 992
1,000 Wilmington, North
Carolina, Public
Improvement GO, Series
1997A, (FGIC Insured),
5.000% 04/01/13........ Aaa NR 973
--------
169,604
--------
ALABAMA -- 1.6%
3,000 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1992,
7.000% 06/01/22........ Baa1 BBB 3,046
--------
MISSOURI -- 0.7%
1,500 Kansas City, Missouri,
Industrial Development
Authority, IDR, (Owens-
Illinois,
Inc. - Georgia-Pacific
Corporation Project)
Series 1998,
4.900% 12/31/08........ Baa2 NR 1,401
--------
NEW JERSEY -- 2.3%
4,085 New Jersey, Financing
Authority, Health Care
Facilities Revenue,
(Riverwood Center Inc.
Project) Series 1991A,
(FSA Insured),
Prerefunded 07/01/01 @
102,
9.900% 07/01/21........ Aaa AAA 4,424
--------
PUERTO RICO -- 0.6%
1,000 Puerto Rico, Electric
Power Authority, Power
Revenue Refunding,
Series 1995Y, (MBIA
Insured),
7.000% 07/01/07........ Aaa AAA 1,129
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- 0.6%
$1,150 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1993A, (MBIA-
IBC Insured),
5.800% 07/01/07........ Aaa AAA $ 1,194
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $179,133)........ 180,798
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 4.5%
(Cost $8,651)
8,651 Nations Municipal Reserves#.......... $ 8,651
--------
TOTAL INVESTMENTS
(Cost $187,784*)............ 99.4% 189,449
--------
OTHER ASSETS AND LIABILITIES
(NET)....................... 0.6%
Receivable for investment
securities sold.................... $ 2,043
Receivable for Fund shares sold...... 155
Interest receivable.................. 3,031
Payable for Fund shares redeemed..... (59)
Investment advisory fee payable...... (8)
Administration fee payable........... (32)
Shareholder servicing and
distribution
fees payable.......................
(7)
Distributions payable................ (697)
Payable for investment
securities purchased............... (3,137)
Accrued Trustees'/Directors'
fees and expenses.................. (18)
Accrued expenses and other
liabilities........................ (86)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................. 1,185
--------
NET ASSETS.................... 100.0% $190,634
========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................. $ 291
Accumulated net realized loss on
investments sold................... (1,152)
Net unrealized appreciation of
investments........................ 1,665
Paid-in capital...................... 189,830
--------
NET ASSETS........................... $190,634
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
167
<PAGE> 172
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($175,650,568 / 17,199,594 shares
outstanding)....................... $10.21
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($9,683,645 / 948,226
shares outstanding)................ $10.21
======
Maximum sales charge................. 3.25%
Maximum offering price per share..... $10.55
INVESTOR B SHARES:
Net asset value and offering price
per share** ($5,212,287 / 510,414
shares outstanding)................ $10.21
======
INVESTOR C SHARES:
Net asset value and offering price
per share** ($87,902 / 8,608 shares
outstanding)....................... $10.21
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $1,665 on
investment securities was comprised of gross appreciation of $3,785 and gross
depreciation of $2,120 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$187,784.
** 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.
Nations North Carolina Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at March 31, 2000 (as a percentage of
net assets):
MBIA 13.33%
Nations North Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at March 31, 2000 (as a percentage of
net assets):
Hospital Revenue 23.96%
SEE NOTES TO FINANCIAL STATEMENTS.
168
<PAGE> 173
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.4%
NORTH CAROLINA -- 97.4%
$1,050 Catawba County, North
Carolina, GO, Series
1997,
4.750% 06/01/13......... Aa2 AA- $ 987
525 Charlotte, North Carolina,
Health Care Systems
Revenue, Unrefunded
Balance, (Mecklenburg
Hospital Authority
Project) Series 1992,
6.250% 01/01/20......... Aa3 AA 532
1,000 Charlotte, North Carolina,
Public Improvement GO,
Series 1998A,
4.750% 02/01/12......... Aaa AAA 955
975 Charlotte-Mecklenburg
Hospital Authority,
Revenue, Series 1992,
Prerefunded
01/01/02 @ 102,
6.250% 01/01/20......... Aa3 AA 1,018
1,000 Craven County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, PCR
Refunding, (Weyerhaeuser
Company Project) Series
1992,
6.350% 01/01/10......... NR A 1,021
1,000 Cumberland County, North
Carolina, GO, Series
1998, (FGIC Insured),
5.000% 03/01/17......... Aaa AAA 939
1,150 Fayetteville, North
Carolina, Public Works
Commission, Revenue
Refunding, Series 1997,
(FSA Insured),
5.250% 03/01/07......... Aaa AAA 1,167
1,305 Greensboro, North
Carolina, Enterprise
Systems Revenue, Series
1998A,
5.500% 06/01/08......... A1 AA- 1,346
1,000 Greensboro, North
Carolina, Public
Improvement GO, Series
1998,
4.700% 04/01/10......... Aa1 AAA 965
1,000 Haywood County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue
Refunding, (Champion
International
Corporation Project)
Series 1999, AMT,
6.400% 11/01/24......... Baa1 NR 988
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 Haywood County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1993, AMT,
5.500% 10/01/18......... Baa1 BBB $ 888
1,925 Johnston County, North
Carolina, GO, Series
2000, (FGIC Insured),
5.500% 03/01/15......... Aaa AAA 1,951
2,000 Martin County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue,
(Weyerhaeuser Company
Project) Series 1993,
AMT,
5.650% 12/01/23......... A2 A 1,787
1,000 Mecklenburg County, North
Carolina, GO Refunding,
Series 1993,
6.000% 04/01/11......... Aaa AAA 1,079
2,000 Mecklenburg County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Revenue
Refunding, (Fluor
Corporation Project)
Series 1993,
5.250% 12/01/09......... NR A 1,994
1,000 Monroe, North Carolina,
Combined Enterprise
Systems, Revenue, Series
1994, Prerefunded
03/01/04 @ 102,
6.000% 03/01/14......... A3 A 1,055
1,000 Morganton, North Carolina,
Water and Sewer GO,
Series 1995, (FGIC
Insured),
5.600% 06/01/10......... Aaa AAA 1,041
1,000 New Hanover County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue,
(Occidental Petroleum
Corporation Project)
Series 1994, AMT,
6.500% 08/01/14......... Baa2 BBB- 1,001
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
169
<PAGE> 174
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,500 North Carolina State, GO,
Series 1997,
5.100% 06/01/09......... Aaa AAA $ 1,516
1,210 North Carolina, Housing
Finance Agency, Revenue,
(Home Ownership Project)
Series 1998A-2, AMT,
5.200% 01/01/20......... Aa2 AA 1,112
1,000 North Carolina, Housing
Finance Agency, Revenue,
Series 1999A-3, AMT,
5.150% 01/01/19......... Aa2 AA 909
740 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1992U, (GNMA/FNMA
COLL),
6.700% 03/01/18......... Aa AA 762
835 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1994W,
6.200% 09/01/09......... Aa2 AA 852
1,130 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Gaston Memorial
Hospital Project) Series
1995, (AMBAC-TCRS
Insured),
5.250% 02/15/07......... Aaa AAA 1,145
860 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Halifax Regional
Medical Center, Inc.
Project) Series 1998,
4.600% 08/15/06......... Baa1 NR 795
1,500 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Pitt County Memorial
Hospital Project) Series
1998B,
4.750% 12/01/28......... Aa3 AA- 1,220
1,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Rex Hospital, Inc.
Project) Series 1993,
Prerefunded 06/01/03 @
102,
6.250% 06/01/17......... Aaa A+ 1,060
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA
-- (CONTINUED)
$1,000 North Carolina, Medical
Care Commission,
Hospital Revenue, (Pitt
County Memorial Hospital
Project) Series 1998B,
5.000% 12/01/18......... Aa3 AA- $ 891
1,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding,
(Catawba Electric
Project) Series 1992,
(FGIC Insured),
6.200% 01/01/18......... Aaa AAA 1,021
1,500 Onslow County, North
Carolina, Combined
Enterprise Systems,
Revenue, Series 1994,
(MBIA Insured),
5.875% 06/01/09......... Aaa AAA 1,550
1,000 Orange County, North
Carolina, GO, Series
1994,
5.500% 02/01/14......... Aa1 AA+ 1,021
1,000 Pitt County, North
Carolina, Hospital
Revenue, (Pitt County
Memorial Hospital
Project) Series 1995,
5.250% 12/01/21......... Aaa NR 947
1,000 Randolph County,
Certificate of
Participation, Series
2000, (FSA Insured),
5.500% 06/01/15(a)...... Aaa AAA 1,004
1,000 Randolph County, North
Carolina, Certificate of
Participation, Series
2000, (FSA Insured),
5.750% 06/01/22(a)...... Aaa AAA 996
1,000 Wilmington, North
Carolina, Water
Authority, GO, Series
1994,
5.700% 06/01/15......... A1 A+ 1,026
-------
38,541
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $38,091).......................... 38,541
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
170
<PAGE> 175
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 6.6%
(Cost $2,620)
2,620 Nations Municipal Reserves#............. $ 2,620
-------
TOTAL INVESTMENTS
(Cost $40,711*)................ 104.0% 41,161
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... (4.0)%
Interest receivable..................... $ 560
Receivable from investment advisor...... 16
Payable for Fund shares redeemed........ (5)
Administration fee payable.............. (7)
Shareholder servicing and
distribution fees payable............. (18)
Distributions payable................... (87)
Payable for investment securities
purchased............................. (1,965)
Accrued Trustees'/Directors' fees
and expenses.......................... (18)
Accrued expenses and other
liabilities........................... (61)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. (1,585)
-------
NET ASSETS....................... 100.0% $39,576
=======
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 21
Accumulated net realized loss on
investments sold...................... (1,590)
Net unrealized appreciation of
investments........................... 450
Paid-in capital......................... 40,695
-------
NET ASSETS.............................. $39,576
=======
</TABLE>
<TABLE>
<CAPTION>
VALUE
--------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($17,787,448 / 1,868,752 shares
outstanding).......................... $9.52
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,527,571 / 160,524 shares
outstanding).......................... $9.52
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $10.00
INVESTOR B SHARES:
Net asset value and offering price per
share** ($20,207,345 / 2,123,175
shares outstanding)................... $9.52
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($53,709 / 5,646 shares
outstanding).......................... $9.51
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $450 on
investment securities was comprised of gross appreciation of $943 and gross
depreciation of $493 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $40,711.
** 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) Security purchased on a "when-issued" basis.
Nations North Carolina Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
FGIC 12.51%
Nations North Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 18.66%
Hospital Revenue 11.13%
Water Revenue 12.36%
SEE NOTES TO FINANCIAL STATEMENTS.
171
<PAGE> 176
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 96.8%
SOUTH CAROLINA -- 96.8%
$1,100 Anderson County, South
Carolina, GO Revenue
Refunding, Series 1992,
6.400% 04/01/03........ A1 A+ $ 1,148
1,300 Anderson County, South
Carolina, GO Revenue
Refunding, Series 1992,
6.500% 04/01/04........ A1 A+ 1,360
1,240 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.200% 07/01/03........ Aaa AAA 1,256
1,000 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.500% 07/01/06........ Aaa AAA 1,023
1,500 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.600% 07/01/07........ Aaa AAA 1,539
1,000 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.600% 07/01/08........ Aaa AAA 1,025
1,000 Berkeley County, South
Carolina, Refunding and
Improvement Authority,
GO, Series 1993, (FGIC
Insured),
5.300% 05/01/04........ Aaa AAA 1,018
1,000 Berkeley County, South
Carolina, Refunding and
Improvement Authority,
GO, Series 1993, (FGIC
Insured),
5.400% 05/01/05........ Aaa AAA 1,023
1,000 Berkeley County, South
Carolina, Refunding and
Improvement Authority,
GO, Series 1993, (FGIC
Insured),
5.500% 05/01/06........ Aaa AAA 1,025
1,000 Camden, South Carolina,
Combined Public
Utilities Revenue
Refunding and
Improvement, Series
1997, (MBIA Insured),
5.500% 03/01/17........ Aaa AAA 991
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$2,370 Charleston County, South
Carolina, Hospital
Facilities Revenue,
(Care Alliance Health
Services Project)
Series 1999A, (FSA
Insured),
5.125% 08/15/15........ Aaa AAA $ 2,260
3,000 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Bon
Secours Health Systems
Project) Series 1993,
(FSA Insured),
5.500% 08/15/10........ Aaa AAA 3,049
1,000 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Medical
Society Health Project)
Series 1992, (MBIA
Insured),
6.000% 10/01/09........ Aaa AAA 1,040
1,000 Charleston County, South
Carolina, Public
Improvement Authority,
GO, Series 1994, (State
Aid Withholding),
5.500% 06/01/14........ Aa3 AA 1,028
1,040 Charleston County, South
Carolina, Solid Waste
User Fee Revenue,
Series 1994, (MBIA
Insured),
5.800% 01/01/06........ Aaa AAA 1,082
4,105 Charleston, South
Carolina, Waterworks
and Sewer Capital
Improvement Revenue
Refunding, Series 1998,
5.250% 01/01/08........ A1 AA- 4,161
1,000 Charleston, South
Carolina, Waterworks
and Sewer Revenue
Refunding, Series 1991,
5.750% 01/01/04........ A1 AA- 1,030
1,645 Cherokee County, South
Carolina, School
District Number 1, GO,
Series 1997, (SCSDE),
5.000% 03/01/02........ Aa1 AA 1,656
1,000 Columbia, South Carolina,
Parking Facilities
Revenue Refunding,
Series 1994, (AMBAC
Insured),
5.750% 12/01/09........ Aaa AAA 1,036
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
172
<PAGE> 177
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$5,000 Columbia, South Carolina,
Waterworks and Sewer
Systems Revenue
Refunding, Series 1993,
5.500% 02/01/09........ Aa2 AA $ 5,152
1,285 Columbia, South Carolina,
Waterworks and Sewer
Systems Revenue,
Unrefunded Balance,
Series 1991,
6.500% 02/01/02........ AA AA 1,326
1,520 Darlington County, South
Carolina, IDR, (Sonoco
Products Company
Project) Series 1995,
AMT,
6.125% 06/01/25........ A2 A 1,481
1,500 Darlington County, South
Carolina, PCR,
(Carolina Power and
Light - Annual Tender
Project) Series 1983,
6.600% 11/01/10........ A2 A-1+ 1,591
1,000 Darlington County, South
Carolina, PCR,
(Carolina Power and
Light Project) Series
1983, (MBIA-IBC
Insured),
6.600% 11/01/10........ Aaa AAA 1,063
2,000 Florence County, South
Carolina, Hospital
Revenue, (McLeod
Regional Hospital
Center Project) Series
1998A, (MBIA Insured),
5.000% 11/01/18........ Aaa AAA 1,792
1,250 Florence, South Carolina,
Water and Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.150% 03/01/06........ Aaa AAA 1,259
1,225 Georgetown County, South
Carolina, Environmental
Revenue, (International
Paper Company Project)
Series 1997A, AMT,
5.700% 10/01/21........ A3 BBB+ 1,099
4,000 Georgetown County, South
Carolina, PCR
Refunding,
(International Paper
Company Project) Series
1999A,
5.125% 02/01/12........ A3 BBB+ 3,682
1,000 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
5.900% 06/01/01........ Aaa AAA 1,016
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA -- (CONTINUED)
$1,000 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.000% 06/01/02........ Aaa AAA $ 1,026
1,950 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.300% 06/01/05........ Aaa AAA 2,042
1,000 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.400% 06/01/07........ Aaa AAA 1,049
1,000 Greenville County, South
Carolina, Industrial
Revenue Refunding,
(Monsanto Company
Project) Series 1990,
7.500% 10/01/07........ A1 NR 1,014
1,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1993C,
5.300% 05/01/04........ NR AA 1,007
4,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1993C,
5.400% 05/01/05........ NR AA 4,038
2,400 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1993C,
5.500% 05/01/11........ NR AA 2,398
1,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1996A, (GTY-AGMT),
5.400% 05/01/07........ Aa3 AA 1,007
4,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1996B, (GTY-AGMT),
5.250% 05/01/17........ Aa3 AA 3,694
2,000 Greenville, South
Carolina, Waterworks
Revenue, Water Utility
Improvements, Series
1997,
6.000% 02/01/06........ Aa1 AA 2,108
1,000 Greenville, South
Carolina, Waterworks
Revenue, Water Utility
Improvements, Series
1997,
6.000% 02/01/08........ Aa1 AA 1,063
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
173
<PAGE> 178
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$1,885 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement, Series
1993, (AMBAC Insured),
5.500% 12/01/06........ Aaa AAA $ 1,932
2,000 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement, Series
1993, (AMBAC Insured),
5.500% 12/01/07........ Aaa AAA 2,046
1,060 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement, Series
1993, (AMBAC Insured),
5.500% 12/01/08........ Aaa AAA 1,083
1,200 Horry County, South
Carolina, Hospital
Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998,
(AMBAC Insured),
4.875% 07/01/11........ Aaa AAA 1,135
1,275 Horry County, South
Carolina, School
District, GO, Series
1995B, (MBIA Insured,
SCSDE),
5.700% 03/01/16........ Aaa AAA 1,286
1,725 Lancaster County, South
Carolina, School
District, GO, Series
1991, (MBIA Insured),
Prerefunded 07/01/02 @
102,
6.500% 07/01/07........ Aaa AAA 1,822
1,180 Lexington County, South
Carolina, Health
Service District,
Revenue Refunding,
(Health Service
District and Lexmed,
Inc. Project) Series
1997, (FSA Insured),
5.500% 11/01/06........ Aaa AAA 1,200
5,000 Lexington County, South
Carolina, Health
Services District,
Revenue Refunding,
Series 1997, (FSA
Insured),
5.125% 11/01/21........ Aaa AAA 4,485
2,000 Lexington, South
Carolina, Water and
Sewer Authority,
Revenue, Series 1997,
5.450% 04/01/19........ NR AA 1,891
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$2,000 Medical University of
South Carolina,
Hospital Facilities,
Revenue Refunding,
Series 1990A,
7.000% 07/01/01........ A3 A $ 2,050
4,500 Medical University of
South Carolina,
Hospital Facilities,
Revenue Refunding,
Series 1990A,
7.000% 07/01/02........ A3 A 4,617
3,725 Medical University of
South Carolina,
Hospital Facilities,
Revenue Refunding,
Series 1990A,
7.200% 07/01/05........ A3 A 3,823
2,500 Myrtle Beach, South
Carolina, Water and
Sewer Improvement
Revenue Refunding,
Series 1993, (MBIA
Insured),
5.000% 03/01/03........ Aaa AAA 2,515
1,750 North Charleston, South
Carolina, GO Refunding,
Series 1993,
5.600% 08/01/07........ A2 AA- 1,796
1,725 North Charleston, South
Carolina, GO Refunding,
Series 1993,
5.750% 08/01/08........ A2 AA- 1,767
1,000 North Charleston, South
Carolina, Sewer
District, Revenue
Refunding, Series
1992A, (MBIA Insured),
6.000% 07/01/02........ Aaa AAA 1,028
1,850 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue
Refunding, Series 1991,
(FGIC Insured),
6.850% 01/01/07........ Aaa AAA 1,918
1,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue
Refunding, Series
1991A, (FGIC Insured),
6.250% 01/01/13........ Aaa AAA 1,038
1,600 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue
Refunding, Series 1992,
(MBIA Insured),
6.000% 01/01/05........ Aaa AAA 1,675
4,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue
Refunding, Series
1996B, (MBIA Insured),
5.250% 01/01/09........ Aaa AAA 4,008
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
174
<PAGE> 179
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$1,715 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue,
Unrefunded Balance,
Series 1991A, (FGIC
Insured),
6.125% 01/01/03........ Aaa AAA $ 1,768
2,040 Richland County, South
Carolina, GO Refunding,
Series 1991,
5.900% 12/01/01........ Aa2 AA 2,085
2,020 Richland County, South
Carolina, GO Refunding,
Series 1994B, (State
Aid Withholding),
4.750% 03/01/03........ Aa2 AA 2,021
2,120 Richland County, South
Carolina, GO Refunding,
Series 1994B, (State
Aid Withholding),
4.850% 03/01/04........ Aa2 AA 2,122
2,250 Richland County, South
Carolina, GO Refunding,
Series 1994B, (State
Aid Withholding),
4.950% 03/01/05........ Aa2 AA 2,255
1,000 Richland County, South
Carolina, PCR
Refunding, (Union Camp
Corporation Project)
Series 1992B,
6.625% 05/01/22........ A3 BBB+ 1,008
4,000 Richland County, South
Carolina, PCR
Refunding, (Union Camp
Corporation Project)
Series 1992C,
5.875% 11/01/02........ A3 BBB+ 4,080
5,000 Richland County, South
Carolina, School
District Number 1, GO,
Series 1996, (SCSDE),
4.625% 03/01/22........ Aa3 AA 4,224
1,330 Richland County, South
Carolina, School
District Number 2, GO
Refunding, Series
1994A, (MBIA Insured,
SCSDE),
4.800% 03/01/03........ Aaa AAA 1,331
1,590 Richland County, South
Carolina, School
District Number 2, GO
Refunding, Series
1994A, (MBIA Insured,
SCSDE),
4.900% 03/01/04........ Aaa AAA 1,593
1,655 Richland County, South
Carolina, School
District Number 2, GO
Refunding, Series
1994A, (MBIA Insured,
SCSDE),
5.000% 03/01/05........ Aaa AAA 1,660
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$1,395 Richland County, South
Carolina, Solid Waste
Disposal Facilities
Revenue, (Union Camp
Corporation Project)
Series 1992A, AMT,
6.750% 05/01/22........ A3 BBB+ $ 1,420
1,000 Rock Hill, South
Carolina, Combined
Public Utility Systems
Revenue, Series 1991,
(FGIC Insured),
6.200% 01/01/03........ Aaa AAA 1,033
2,000 Rock Hill, South
Carolina, School
District Number 3, GO
Refunding, Series
1992B, (FGIC Insured,
SCSDE),
5.900% 02/01/02........ Aaa AAA 2,042
500 South Carolina State,
Capital Improvement GO
Refunding, Series 1993,
4.400% 04/01/04........ Aaa AAA 492
4,000 South Carolina State,
Capital Improvement GO
Refunding, Series 1993,
4.500% 04/01/05........ Aaa AAA 3,932
6,135 South Carolina State,
Capital Improvement GO,
Series 1996A,
3.500% 07/01/06........ Aaa AAA 5,499
1,750 South Carolina State, GO,
Series 1991W,
6.000% 05/01/01........ Aaa AAA 1,783
5,000 South Carolina State,
Housing Finance and
Development Authority,
Multi-Family Housing
Revenue, (United
Dominion Realty Trust
Project) Series 1994,
AMT, Mandatory Put
05/01/04 @ 100,
6.500% 05/01/24........ NR BBB 5,125
2,380 South Carolina State,
Housing Finance and
Development Authority,
Rental Housing Revenue,
(Windsor Shores
Project) Series 1993B,
(FHA Insured),
5.600% 07/01/16........ NR AA 2,263
2,375 South Carolina State,
Jobs Economic
Development Authority,
Hospital Facilities
Revenue, Series 1999,
(FSA Insured),
5.300% 02/01/14........ Aaa AAA 2,325
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
175
<PAGE> 180
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$4,565 South Carolina State,
Port Authority,
Revenue, Series 1998,
AMT, (FSA Insured),
5.250% 07/01/13........ Aaa AAA $ 4,429
1,000 South Carolina State,
Public Service
Authority, Revenue
Refunding, Series
1991B,
6.600% 07/01/01........ Aaa AAA 1,026
1,000 South Carolina State,
Public Service
Authority, Revenue,
Series 1991B,
6.700% 07/01/02........ Aa2 AA- 1,041
4,000 South Carolina,
Educational Facilities
for Non-Profit
Institutions, Revenue,
(Furman University
Project) Series 1996A,
(MBIA Insured),
5.500% 10/01/26........ Aaa AAA 3,818
1,500 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Oconee Memorial
Hospital, Inc. Project)
Series 1995, (CONNIE
LEE Insured),
6.150% 03/01/15........ NR AAA 1,545
4,500 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
7.125% 12/15/15........ Baa1 BBB 4,413
6,500 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(South Carolina Baptist
Hospital Project)
Series 1993, (AMBAC
Insured),
5.465% 08/01/15........ Aaa AAA 6,301
4,595 South Carolina, State
Housing Finance and
Development Authority,
Revenue Refunding,
Series 1992A, (FNMA/FHA
COLL),
6.800% 11/15/11........ Aaa NR 4,752
3,495 South Carolina, State
Ports Authority, Ports
Revenue, Series 1991,
(AMBAC Insured),
6.750% 07/01/21........ Aaa AAA 3,655
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$3,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1992A,
6.200% 07/01/05........ Aa2 AA- $ 3,129
1,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1992A,
6.375% 07/01/11........ Aa2 AA- 1,040
1,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1993A,
5.200% 07/01/03........ Aa2 AA- 1,010
1,500 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1993A, (MBIA Insured),
5.300% 07/01/05........ Aaa AAA 1,523
2,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1993C, (AMBAC Insured),
5.100% 01/01/11........ Aaa AAA 1,979
4,000 South Carolina,
Transportation
Infrastructure Revenue,
Series 1998A, (MBIA
Insured),
5.000% 10/01/12........ Aaa AAA 3,888
1,025 Spartanburg County, South
Carolina, GO, Series
1992,
5.800% 02/01/05........ Aa2 AA- 1,063
1,005 Spartanburg County, South
Carolina, GO, Series
1992,
5.700% 02/01/06........ Aa2 AA- 1,035
1,000 Spartanburg County, South
Carolina, GO, Series
1992,
5.700% 02/01/09........ Aa2 AA- 1,021
2,850 Spartanburg, South
Carolina, Sewer
District, Sewer Systems
Revenue, Series 1997,
(MBIA Insured),
Prerefunded 06/01/07 @
101,
5.500% 06/01/27........ Aaa.. AAA 2,961
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
176
<PAGE> 181
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$3,445 Spartanburg, South
Carolina, Waterworks
and Sewer Systems
Authority, Revenue,
Unrefunded Balance,
Series 1992,
6.200% 06/01/09........ A1 AA- $ 3,566
1,000 West Columbia, South
Carolina, Water and
Sewer Revenue
Refunding, Series 1992,
(MBIA Insured),
6.300% 10/01/07........ Aaa AAA 1,051
1,000 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series 1992,
(AMBAC Insured),
5.800% 03/01/03........ Aaa AAA 1,027
1,000 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series 1992,
(AMBAC Insured),
5.900% 03/01/04........ Aaa AAA 1,028
2,500 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.000% 03/01/02........ Aaa AAA 2,515
1,000 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.500% 03/01/10........ Aaa AAA 1,015
4,000 York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project) Series
1991B,
6.850% 04/01/01........ Baa3 BBB 4,037
--------
224,701
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $221,341)........................ $224,701
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.6%
(Cost $1,464)
1,464 Nations Municipal Reserves#........... $ 1,464
--------
TOTAL INVESTMENTS
(Cost $222,805*)............. 97.4% 226,165
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 2.6%
Cash.................................. $ 1
Receivable for investment
securities sold..................... 3,034
Receivable for Fund shares sold....... 812
Interest receivable................... 3,616
Payable for Fund shares redeemed...... (212)
Investment advisory fee payable....... (28)
Administration fee payable............ (40)
Shareholder servicing and
distribution fees payable........... (13)
Distributions payable................. (926)
Accrued Trustees'/Directors' fees
and expenses........................ (20)
Accrued expenses and other
liabilities......................... (74)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... 6,150
--------
NET ASSETS..................... 100.0% $232,315
========
NET ASSETS CONSIST OF:
Undistributed net investment
income.............................. $ 213
Accumulated net realized gain on
investments sold.................... (84)
Net unrealized appreciation of
investments......................... 3,360
Paid-in capital....................... 228,826
--------
NET ASSETS............................ $232,315
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
177
<PAGE> 182
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($204,854,563 / 19,955,485 shares
outstanding)........................ $10.27
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($17,395,920 / 1,694,671
shares outstanding)................. $10.27
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.61
INVESTOR B SHARES:
Net asset value and offering price per
share** ($7,309,618 / 712,046 shares
outstanding)........................ $10.27
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,755,063 / 268,355 shares
outstanding)........................ $10.27
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $3,360 on
investment securities was comprised of gross appreciation of $5,790 and gross
depreciation of $2,430 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$222,805.
** 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.
Nations South Carolina Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at March 31, 2000 (as a percentage of
net assets):
MBIA 17.76%
Nations South Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at March 31, 2000 (as a percentage of
net assets):
Hospital Revenue 23.07%
Water Revenue 18.44%
Electric Revenue 11.29%
SEE NOTES TO FINANCIAL STATEMENTS.
178
<PAGE> 183
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 99.2%
SOUTH CAROLINA -- 99.2%
$ 750 Berkeley County, South
Carolina, PCR, (South
Carolina Electric and
Gas Company Project)
Series 1984, (GTY-AGMT),
6.500% 10/01/14......... A2 A- $ 787
500 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Bon
Secours Health Systems
Project) Series 1993,
(FSA Insured), 5.625%
08/15/25................ Aaa AAA 499
500 Charleston, South
Carolina, GO, Series
1991, Prerefunded
06/01/01 @ 102,
6.500% 06/01/11......... Aa NR 521
1,000 Charleston, South
Carolina, Waterworks and
Sewer Capital
Improvement Revenue
Refunding, Series 1998,
5.250% 01/01/08......... A1 AA- 1,014
1,000 Chester County, South
Carolina, IDR,
Refunding, (Springs
Industries Inc. Project)
Series 1992,
7.350% 02/01/14......... NR BBB+ 1,034
500 Clemson University, South
Carolina, Stadium
Refunding Bonds, Student
and Faculty Housing,
Series 1991-M, (MBIA
Insured), Prerefunded
06/01/01 @ 100,
6.600% 06/01/08......... Aaa AAA 513
2,000 Columbia, South Carolina,
Waterworks and Sewer
Systems Revenue
Refunding, Series 1993,
5.500% 02/01/09......... Aa2 AA 2,060
2,700 Columbia, South Carolina,
Waterworks and Sewer
Systems Revenue, Series
1991,
4.850%+ 02/01/03........ Aa2 AA 2,347
1,750 Darlington County, South
Carolina, IDR, (Nucor
Corporation Project)
Series 1993A, AMT,
5.750% 08/01/23......... A1 AA- 1,683
2,000 Darlington County, South
Carolina, IDR, (Sonoco
Products Company
Project) Series 1995,
AMT,
6.125% 06/01/25......... A2 A 1,948
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$ 500 Darlington County, South
Carolina, PCR, (Carolina
Power and Light - Annual
Tender Project) Series
1983, 6.600% 11/01/10... A2 A-1+ $ 530
500 Dorchester County, South
Carolina, School
District Number 2, GO
Refunding, Series 1995,
(FGIC Insured, SCSDE),
4.800% 07/01/05......... Aaa AAA 497
2,000 Georgetown County, South
Carolina, PCR Refunding,
(International Paper
Company Project) Series
1999A,
5.125% 02/01/12......... A3 BBB+ 1,841
500 Georgetown County, South
Carolina, PCR,
(International Paper
Company Project) Series
1997B, AMT,
5.600% 12/01/21......... A3 BBB+ 443
2,040 Greenville, South
Carolina, Hospital
Facilities Revenue,
Series 1996B, (GTY
AGMT),
5.250% 05/01/23......... Aa3 AA 1,822
1,500 Greenville, South
Carolina, Water Utility
Improvement Waterworks
Revenue, Series 1997,
5.500% 02/01/22......... Aa1 AA 1,457
710 Greer, South Carolina,
Combined Public
Utilities, Revenue
Refunding and
Improvement, Series
1997, (AMBAC Insured),
5.000% 09/01/17......... Aaa AAA 656
1,100 Horry County, South
Carolina, Hospital
Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998,
(AMBAC Insured),
4.750% 07/01/10......... Aaa AAA 1,034
1,575 Medical University, South
Carolina, Hospital
Facilities Revenue,
Series 1999,
5.500% 07/01/09......... A3 A 1,552
1,000 Oconee County, South
Carolina, School
District, GO, Series
1994, (MBIA Insured),
5.100% 01/01/13......... Aaa AAA 973
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
179
<PAGE> 184
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$1,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue
Refunding, Series 1996B,
(MBIA Insured),
5.250% 01/01/09......... Aaa AAA $ 1,002
1,000 Richland County, South
Carolina, School
District Number 1, GO,
Series 1996, (SCSDE),
4.625% 03/01/22......... Aa3 AA 845
2,000 South Carolina State, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
Series 1999, (FSA
Insured), 5.300%
02/01/14................ Aaa AAA 1,959
2,000 South Carolina State,
Public Service
Authority, Revenue,
Series 1999A, (MBIA
Insured),
5.625% 01/01/13......... Aaa AAA 2,049
1,000 South Carolina,
Educational Facilities
for Non-Profit
Institutions, Revenue,
(Furman University
Project) Series 1996A,
(MBIA Insured),
5.500% 10/01/26......... Aaa AAA 954
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project) Series
2000A,
7.125% 12/15/15......... Baa1 BBB 981
1,000 South Carolina,
Transportation
Infrastructure Revenue,
Series 1998A, (MBIA
Insured),
5.000% 10/01/12......... Aaa AAA 972
1,000 South Carolina,
Transportation
Infrastructure Revenue,
Series 1998A, (MBIA
Insured),
4.500% 10/01/17......... Aaa AAA 855
1,000 Spartanburg County, South
Carolina, Health
Services District,
Hospital Revenue
Refunding, Series 1997B,
(MBIA Insured),
5.125% 04/15/17......... Aaa AAA 927
2,250 Spartanburg, South
Carolina, Sanitary Sewer
District, Sewer System
Revenue Refunding,
Series 1999B, (MBIA
Insured),
5.000% 03/01/26......... Aaa AAA 1,985
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA
-- (CONTINUED)
$2,000 York County, South
Carolina, Exempt
Facilities IDR, (Hoechst
Celanese Corporation
Project) Series 1994,
AMT,
5.700% 01/01/24......... Baa2 BBB $ 1,768
900 York County, South
Carolina, PCR Refunding,
(Bowater Inc. Project)
Series 1991B,
6.850% 04/01/01......... BAa3 BBB 908
-------
38,416
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $38,230).......................... 38,416
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.4%
(Cost $139)
139 Nations Municipal Reserves#............. 139
-------
TOTAL INVESTMENTS
(Cost $38,369*)................ 99.6% 38,555
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... 0.4%
Cash.................................... $ 1
Interest receivable..................... 578
Receivable from investment advisor...... 23
Payable for Fund shares redeemed........ (216)
Administration fee payable.............. (7)
Shareholder servicing and
distribution fees payable............. (8)
Distributions payable................... (148)
Accrued Trustees'/Directors' fees
and expenses.......................... (17)
Accrued expenses and other
liabilities........................... (56)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 150
-------
NET ASSETS....................... 100.0% $38,705
=======
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 14
Accumulated net realized loss on
investments sold...................... (586)
Net unrealized appreciation of
investments........................... 186
Paid-in capital......................... 39,091
-------
NET ASSETS.............................. $38,705
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
180
<PAGE> 185
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
--------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($28,784,459 / 2,952,198 shares
outstanding).......................... $9.75
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($905,328 / 92,857 shares
outstanding).......................... $9.75
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $10.24
INVESTOR B SHARES:
Net asset value and offering price per
share** ($8,973,541 / 920,278 shares
outstanding).......................... $9.75
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($41,254 / 4,231 shares
outstanding).......................... $9.75
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $186 on
investment securities was comprised of gross appreciation of $502 and gross
depreciation of $316 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $38,369.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations South Carolina Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
MBIA 26.63%
Nations South Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 28.38%
Hospital Revenue 22.75%
Water Revenue 22.99%
SEE NOTES TO FINANCIAL STATEMENTS.
181
<PAGE> 186
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 95.9%
TENNESSEE -- 91.3%
$1,000 Anderson County,
Tennessee, Health and
Educational Facilities
Board, Revenue
Refunding, (Methodist
Medical Center - Oak
Ridge Project) Series
1993,
5.40% 07/01/04.......... A1 NR $ 1,004
1,700 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993,
(FSA Insured), 5.38%
10/01/04................ Aaa AAA 1,726
1,000 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993,
(FSA Insured), 5.50%
10/01/07................ Aaa AAA 1,022
1,000 Dickson County, Tennessee,
GO, Series 1997, (FGIC
Insured),
5.00% 04/01/18.......... Aaa NR 920
1,145 Harpeth Valley, Tennessee,
Utilities District,
Revenue Refunding,
Series 1993,
5.00% 09/01/01.......... A1 A 1,152
1,600 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Hospital
Facilities Improvement
Revenue Refunding,
(Baptist Health System
of East Tennessee, Inc.
Project) Series 1996,
(CONNIE LEE Insured),
5.50% 04/15/11.......... Aaa AAA 1,612
500 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Hospital
Facilities Revenue,
(Sanders Alliance
Project) Series 1993A,
(MBIA Insured),
4.90% 01/01/05.......... Aaa AAA 499
2,000 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
Systems Inc. Project)
Series 1999,
5.75% 04/01/19.......... Baa1 NR 1,783
1,250 Knox County, Tennessee,
Public Improvement GO,
Series 1998,
4.75% 04/01/19.......... Aa2 AA 1,101
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 500 Madison County, Tennessee,
GO, Series 1992A,
5.85% 08/01/03.......... A1 NR $ 518
2,270 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General
Motors
Corporation - Saturn
Corporation Project)
Series 1994,
6.50% 09/01/24.......... A2 A 2,279
1,800 McMinn County, Tennessee,
Industrial Development
Board, PCR Refunding,
(Bowater Inc. Project)
Series 1991,
6.85% 04/01/01.......... Baa3 BBB 1,839
1,000 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.40% 12/01/22.......... Baa2 BBB 1,025
1,000 Memphis, Tennessee,
Electric System Revenue
Refunding, Series 1992,
6.00% 01/01/05.......... Aa3 AA 1,046
1,500 Memphis, Tennessee, Water
Division, Revenue
Refunding, Series 1992,
5.90% 01/01/04.......... Aa1 AA 1,554
1,000 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1992, AMT,
6.75% 09/01/12.......... Baa2 BBB 1,049
1,600 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Electric Revenue, Series
1998B,
5.50% 05/15/13.......... Aa3 AA 1,634
750 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1993,
5.25% 05/15/07.......... Aa2 AA 762
505 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.00% 12/01/08.......... Aaa AAA 538
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
182
<PAGE> 187
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 295 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.00% 12/01/09.......... Aaa AAA $ 316
600 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Multi-Family Housing
Revenue, (Enchantment,
Inc. - Welch Bend
Apartments Project)
Series 1996A, (FNMA
COLL), Mandatory Put
01/01/07 @ 100,
5.50% 01/01/27.......... NR AAA 605
1,245 Rutherford County,
Tennessee, Public
Improvement GO, Series
1996,
6.00% 04/01/06.......... Aa2 AA 1,312
1,000 Shelby County, Tennessee,
GO Refunding, Series
1993A,
5.00% 03/01/03.......... Aa3 AA+ 1,007
1,280 Shelby County, Tennessee,
GO Refunding, Series
1996B,
5.20% 12/01/09.......... Aa3 AA+ 1,289
260 Shelby County, Tennessee,
GO, Unrefunded Balance,
Series 1992B,
6.00% 03/01/08.......... Aa3 AA+ 268
520 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(Lebonheur Childrens
Medical Center Project)
Series 1993D, (MBIA
Insured),
5.30% 08/15/04.......... Aaa AAA 529
500 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(Methodist Health
Systems, Inc. Project)
Series 1995, (MBIA
Insured),
6.25% 08/01/09.......... Aaa AAA 537
2,000 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue, (St.
Jude's Childrens
Research Project) Series
1999,
5.38% 07/01/24.......... NR AA 1,832
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 500 Shelby County, Tennessee,
Public Improvement GO,
Series 1996A,
5.63% 06/01/06.......... Aa3 AA+ $ 518
1,000 Sumner County, Tennessee,
Resource Authority,
Revenue, Series 1993,
(AMBAC Insured),
5.13% 08/01/03.......... Aaa AAA 1,010
1,500 Tennergy Corporation,
Tennessee, Gas Revenue,
Series 1999, (MBIA
Insured),
5.00% 06/01/07.......... Aaa AAA 1,449
2,500 Tennessee Housing
Development Agency,
Homeownership Revenue,
Series 1997-3A, AMT,
5.570%+ 01/01/08........ Aa2 AA 1,598
990 Tennessee Housing
Development Agency,
Mortgage Finance
Revenue, Series 1993A,
AMT,
5.10% 07/01/01.......... A1 AA 992
200 Tennessee Housing
Development Agency,
Mortgage Finance
Revenue, Series 1994A,
AMT,
6.30% 01/01/08.......... A1 AA 201
1,000 Tennessee State, GO,
Series 1994A,
5.20% 03/01/05.......... Aaa AAA 1,027
1,000 Tennessee State, GO,
Series 1995A,
7.00% 03/01/03.......... Aaa AAA 1,060
500 Tennessee State, School
Board Authority, Higher
Education Facilities
Revenue, Series 1992A,
6.00% 05/01/05.......... Aa2 AA+ 520
300 Tennessee, Housing
Development Agency,
Mortgage Finance
Revenue, Series 1994B,
AMT,
6.55% 07/01/19.......... A1 AA 303
1,120 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1997,
AMT,
4.790%+ 07/01/03........ Aa2 AA 949
1,215 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1997,
AMT,
4.740%+ 07/01/04........ Aa2 AA 974
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
183
<PAGE> 188
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 785 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1998,
AMT,
4.75% 07/01/08.......... Aa2 AA $ 755
1,135 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1998,
AMT,
4.85% 07/01/09.......... Aa2 AA 1,092
-------
43,206
-------
MISSOURI -- 2.5%
1,275 West Plains, Missouri,
Industrial Development
Authority, Hospital
Revenue, (Ozarks Medical
Center Project) Series
1997, 5.25% 11/15/07.... NR BB+ 1,171
-------
PUERTO RICO -- 2.1%
600 Puerto Rico, Electric
Power Authority, Power
Revenue, Series 1991P,
6.75% 07/01/03.......... Baa1 BBB+ 626
380 Puerto Rico, Housing Bank
and Finance Agency,
Single-Family Mortgage
Revenue, (Affordable
Housing Mortgage-
Portfolio I) Series
1995, AMT, (GNMA/FNMA/
FHLMC COLL),
5.45% 04/01/05.......... Aaa AAA 383
-------
1,009
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $45,704).......................... 45,386
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 3.6%
(Cost $1,691)
1,691 Nations Municipal Reserves#............. $ 1,691
-------
TOTAL INVESTMENTS
(Cost $47,395*)................ 99.5% 47,077
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... 0.5%
Cash.................................... $ 1
Interest receivable..................... 758
Receivable from investment advisor...... 5
Payable for Fund shares redeemed........ (272)
Administration fee payable.............. (8)
Shareholder servicing and
distribution fees payable............. (3)
Distributions payable................... (153)
Accrued Trustees'/Directors' fees
and expenses.......................... (17)
Accrued expenses and other
liabilities........................... (56)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 255
-------
NET ASSETS....................... 100.0% $47,332
=======
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 3
Accumulated net realized loss on
investments sold...................... (368)
Net unrealized depreciation of
investments........................... (318)
Paid-in capital......................... 48,015
-------
NET ASSETS.............................. $47,332
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
184
<PAGE> 189
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($37,736,347 / 3,806,349 shares
outstanding).......................... $9.91
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($7,809,714 / 787,779 shares
outstanding).......................... $9.91
=====
Maximum sales charge.................... 3.25%
Maximum offering price per share........ $10.24
INVESTOR B SHARES:
Net asset value and offering price per
share** ($1,783,256 / 179,864 shares
outstanding).......................... $9.91
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,615 / 265 shares
outstanding).......................... $9.87
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized depreciation of $318 on
investment securities was comprised of gross appreciation of $510 and gross
depreciation of $828 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $47,395.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations Tennessee Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 13.15%
Hospital Revenue 23.76%
Housing Revenue 16.68%
SEE NOTES TO FINANCIAL STATEMENTS.
185
<PAGE> 190
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.5%
TENNESSEE -- 94.8%
$500 Blount County, Tennessee,
Public Building
Authority, Public
Facility Revenue, Series
1998, (FGIC Insured),
5.00% 04/01/19.......... Aaa AAA $ 453
250 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993,
(FSA Insured), 5.50%
10/01/07................ Aaa AAA 256
740 Hamilton County,
Tennessee, Refunding,
GO, Series 1998B,
5.10% 08/01/24.......... Aa2 NR 680
575 Humphreys County,
Tennessee, Industrial
Development Board, Solid
Waste Disposal, (E.I.
duPont de Nemours and
Company Project) Series
1994, AMT,
6.70% 05/01/24.......... Aa3 AA- 607
400 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Hospital
Facilities Improvement
Revenue Refunding,
(Baptist Health System
of East Tennessee, Inc.
Project) Series 1996,
(CONNIE LEE Insured),
5.50% 04/15/11.......... NR AAA 403
300 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue
Refunding, (Fort Sanders
Alliance Project) Series
1993, (MBIA Insured),
7.25% 01/01/09.......... Aaa AAA 342
500 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
Systems Inc. Project)
Series 1999,
5.75% 04/01/19.......... Baa1 NR 446
200 Loudon County, Tennessee,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Kimberly-Clark
Corporation Project)
Series 1993, AMT,
6.20% 02/01/23.......... Aa2 AA 202
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$500 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General
Motors Corporation -
Saturn Corporation
Project) Series 1994,
6.50% 09/01/24.......... A2 A $ 502
250 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.40% 12/01/22.......... Baa2 BBB 256
300 Memphis, Tennessee,
Electric System Revenue
Refunding, Series 1993,
4.90% 01/01/11.......... Aa3 AA 290
250 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1992, AMT,
6.75% 09/01/12.......... Baa2 BBB 262
100 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1993, AMT,
6.20% 07/01/14.......... Baa2 BBB 99
700 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1997,
5.35% 09/01/12.......... Baa2 BBB 655
250 Metropolitan Government,
Nashville and Davidson
County, Revenue,
(Meharry Medical College
Project) Series 1994,
(AMBAC Insured),
Prerefunded 12/01/04 @
102,
7.00% 12/01/11.......... Aaa AAA 276
350 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Electric Revenue, Series
1996A,
5.63% 05/15/14.......... Aa3 AA 356
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
186
<PAGE> 191
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$400 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Electric Revenue, Series
1998B,
5.50% 05/15/13.......... Aa3 AA $ 409
250 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1993,
5.25% 05/15/07.......... Aa2 AA 254
500 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.00% 12/01/16.......... Aaa AAA 526
300 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.00% 12/01/09.......... Aaa AAA 321
400 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Multi-Family Housing
Revenue, (Enchantment,
Inc. - Welch Bend
Apartments Project)
Series 1996A, (FNMA
COLL), Mandatory Put
01/01/07 @ 100,
5.50% 01/01/27.......... NR AAA 403
300 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water
and Sewer Revenue
Refunding, Series 1993,
(FGIC Insured),
5.20% 01/01/13.......... Aaa AAA 297
400 Rutherford County,
Tennessee, Public
Improvement GO, Series
1996,
6.00% 04/01/06.......... Aa2 AA 422
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$400 Shelby County, Tennessee,
Public Improvement GO
Refunding, Series 1999A,
4.75% 05/01/21.......... Aa3 AA+ $ 347
250 Sumner County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue
Refunding, (Sumner
Regional Health Systems,
Inc. Project) Series
1994,
7.00% 11/01/03.......... NR A- 261
250 Tennessee State, Local
Development Authority,
Revenue Refunding,
(State Loan Program)
Series 1993A,
5.75% 03/01/11.......... A2 AA 256
185 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1996,
AMT,
5.85% 07/01/17.......... Aa2 AA 185
300 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1998,
AMT,
4.75% 07/01/08.......... Aa2 AA 289
-------
10,055
-------
PUERTO RICO -- 2.7%
300 Puerto Rico, Public
Buildings Authority,
Guaranteed Public
Education and Health
Facilities Revenue
Refunding, Series 1993M,
5.50% 07/01/21.......... Baa1 A 290
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $10,362)............................ 10,345
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
187
<PAGE> 192
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.8%
(Cost $196)
196 Nations Municipal Reserves#............. $ 196
-------
TOTAL INVESTMENTS
(Cost $10,558*)................ 99.3% 10,541
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... 0.7%
Cash.................................... $ 1
Interest receivable..................... 192
Receivable from investment advisor...... 22
Payable for Fund shares redeemed........ (47)
Administration fee payable.............. (2)
Shareholder servicing and
distribution fees payable............. (4)
Distributions payable................... (28)
Accrued Trustees'/Directors' fees
and expenses.......................... (17)
Accrued expenses and other
liabilities........................... (43)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 74
-------
NET ASSETS....................... 100.0% $10,615
=======
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 22
Accumulated net realized loss on
investments sold...................... (89)
Net unrealized depreciation of
investments........................... (17)
Paid-in capital......................... 10,699
-------
NET ASSETS.............................. $10,615
=======
</TABLE>
<TABLE>
<CAPTION>
VALUE
--------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($5,113,645 / 528,445
shares outstanding)................... $9.68
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,357,161 / 140,231 shares
outstanding).......................... $9.68
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $10.16
INVESTOR B SHARES:
Net asset value and offering price per
share** ($4,000,885 / 413,445 shares
outstanding).......................... $9.68
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($142,957 / 14,773 shares
outstanding).......................... $9.68
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized depreciation of $17 on
investment securities was comprised of gross appreciation of $212 and gross
depreciation of $229 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $10,558.
** 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.
Nations Tennessee Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
AMBAC 10.58%
Nations Tennessee Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 24.50%
Hospital Revenue 16.20%
SEE NOTES TO FINANCIAL STATEMENTS.
188
<PAGE> 193
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.3%
TEXAS -- 88.0%
$ 1,450 Alliance Airport
Authority Inc., Texas,
Special Facilities
Revenue, (American
Corporation - American
Airlines Inc. Project)
Series 1991, AMT,
7.00% 12/01/11......... Baa1 BBB- $ 1,572
750 Amarillo, Texas, Junior
College District, GO,
Series 1995, (FGIC
Insured),
7.60% 02/15/06......... Aaa AAA 830
1,375 Arlington, Texas,
Independent School
District, GO, Series
1991A, (PSF-GTD
Insured),
6.38% 08/15/01......... Aaa NR 1,410
1,500 Arlington, Texas,
Independent School
District, GO, Series
1992, (PSF-GTD
Insured), Prerefunded
02/15/05 @ 100,
6.10% 02/15/05......... Aaa NR 1,537
1,060 Arlington, Texas,
Independent School
District, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD
Insured),
5.80% 02/15/02......... Aaa NR 1,081
1,775 Arlington, Texas,
Independent School
District, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD
Insured),
6.10% 02/15/05......... Aaa NR 1,814
500 Arlington, Texas,
Independent School
District, Prerefunded,
GO, Series 1990,
6.75% 08/15/00......... Aa3 NR 505
500 Arlington, Texas,
Independent School
District, Unrefunded
Balance, GO, Series
1990,
6.75% 08/15/00......... Aa3 NR 505
1,000 Arlington, Texas,
Waterworks and Sewer
Improvement Revenue
Refunding, Series 1992,
(FGIC Insured),
6.10% 06/01/02......... Aaa AAA 1,028
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 2,100 Athens, Texas,
Independent School
District, GO, Series
1999, (PSF-GTD
Insured),
5.25% 08/15/20......... NR AAA $ 1,970
5,750 Austin, Texas, GO
Refunding, Series 1993,
5.50% 09/01/04......... Aa2 AA 5,894
2,000 Austin, Texas, Public
Improvement GO, Series
1992, (AMBAC Insured),
Prerefunded 09/01/02 @
100,
5.90% 09/01/05......... Aaa AAA 2,054
4,275 Austin, Texas, Utility
System Revenue
Refunding, Series 1992,
(AMBAC Insured),
6.25% 11/15/03......... Aaa AAA 4,471
3,000 Austin, Texas, Utility
System Revenue
Refunding, Series 1992,
(AMBAC Insured),
6.25% 11/15/05......... Aaa AAA 3,153
965 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior Lien,
Series 1994A-2, AMT,
(GTD STD LNS),
6.05% 06/01/03......... Aaa NR 985
4,365 Cass County, Texas,
Industrial Development
Corporation,
Environmental Revenue,
(International Paper
Corporation Project)
Series 1997A, AMT,
(GTY-AGMT),
6.25% 04/01/21......... A3 BBB+ 4,193
2,115 Cedar Hill, Texas,
Independent School
District, GO Refunding,
Series 2000, (PSF-GTD
Insured),
6.730%+ 08/15/20....... NR AAA 567
4,115 Cedar Hill, Texas,
Independent School
District, Prerefunded,
GO, Series 2000,
(PSF-GTD Insured),
6.550%+ 08/15/16....... NR AAA 1,480
3,840 Cedar Hill, Texas,
Independent School
District, Prerefunded,
GO, Series 2000,
(PSF-GTD Insured),
6.600%+ 08/15/17....... NR AAA 1,284
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
189
<PAGE> 194
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,525 Clear Creek, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured),
5.38% 02/01/06......... Aaa AAA $ 3,581
1,500 Dallas, Texas, Civic
Center Convention
Revenue, Senior Lien,
Series 1991, (AMBAC
Insured), Prerefunded
01/01/01 @ 100,
6.38% 01/01/02......... Aaa AAA 1,524
2,860 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured),
5.60% 08/15/05......... Aaa AAA 2,923
2,940 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured),
5.70% 08/15/06......... Aaa AAA 3,009
1,565 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured), Prerefunded
08/15/03 @ 100,
5.60% 08/15/05......... Aaa AAA 1,604
1,575 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured), Prerefunded
08/15/03 @ 100,
5.60% 08/15/05......... Aaa AAA 1,615
1,550 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured), Prerefunded
08/15/03 @ 100,
5.70% 08/15/06......... Aaa AAA 1,594
1,510 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD
Insured), Prerefunded
08/15/03 @ 100,
5.70% 08/15/06......... Aaa AAA 1,553
5,000 Dallas-Fort Worth, Texas,
Regional Airport
Revenue Refunding,
(Dallas-Fort Worth
Airport Project) Series
1994A, (MBIA Insured),
5.40% 11/01/03......... Aaa AAA 5,095
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 500 Denton, Texas, Health
Facilities Development
Revenue Refunding,
(Evangelical Lutheran
Good Samaritan Society
Project) Series 1994,
(AMBAC Insured),
6.00% 05/01/05......... Aaa AAA $ 520
1,395 El Paso, Texas, GO
Refunding, Series
1992C, (FGIC Insured),
5.70% 08/15/03......... Aaa AAA 1,422
2,000 Garland, Texas, Utility
Systems Revenue
Refunding, Series 1992,
(AMBAC Insured),
5.90% 03/01/02......... Aaa AAA 2,042
5,000 Gulf Coast Waste Disposal
Authority, Texas,
Revenue, (Champion
International
Corporation Project)
Series 1992A, AMT,
6.88% 12/01/28......... Baa1 BBB 5,018
3,000 Harris County, Texas,
Flood Control District
GO Refunding, Series
1991,
6.25% 10/01/04......... Aa1 AA 3,066
1,115 Harris County, Texas,
Flood Control District,
GO, Series 1992A,
5.80% 10/01/03......... Aa1 AA 1,142
2,655 Harris County, Texas,
Health Facilities
Development Authority,
Revenue, (Memorial
Hospital Systems
Project) Series 1997A,
(MBIA Insured),
6.00% 06/01/10......... Aaa AAA 2,793
2,000 Harris County, Texas,
Health Facilities
Development Authority,
Revenue, Series 1999A,
5.50% 07/01/09......... Aaa AAA 2,038
2,000 Harris County, Texas,
Health Facilities
Development
Corporation, Revenue,
(Christus Health
Project) Series 1999A,
(MBIA Insured),
5.50% 07/01/10......... Aaa AAA 2,034
7,185 Harris County, Texas,
Toll Road Revenue
Refunding, Senior Lien,
Series 1994, (FGIC
Insured),
5.00% 08/15/16......... Aaa AAA 6,675
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
190
<PAGE> 195
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,380 Harris County, Texas,
Toll Road Revenue
Refunding, Senior Lien,
Series 1994, (FGIC
Insured),
5.38% 08/15/20......... Aaa AAA $ 3,225
3,305 Houston, Texas, Airport
Systems Revenue,
Subordinate Lien,
Series 1998A, AMT,
(FGIC Insured),
6.00% 07/01/07......... Aaa AAA 3,461
1,305 Houston, Texas, GO
Refunding, Series
1992C, Prerefunded
03/01/02 @ 100,
6.00% 03/01/05......... Aa3 AA- 1,335
3,085 Houston, Texas, GO,
Unrefunded Balance,
Series 1992C,
6.00% 03/01/05......... Aa3 AA- 3,148
5,000 Houston, Texas,
Independent School
District, GO Refunding,
Series 1993, (PSFG
Insured),
5.40% 08/15/07......... Aaa AAA 5,055
1,025 Houston, Texas, Public
Improvement GO, Series
1991A, Prerefunded
04/01/01 @ 100,
6.60% 04/01/05......... Aa3 AA- 1,048
1,305 Houston, Texas, Public
Improvement GO, Series
1991A, Prerefunded
04/01/01 @ 100,
6.60% 04/01/06......... Aa3 AA- 1,335
10,000 Houston, Texas, Water &
Sewer Systems Revenue,
Junior Lien, Series
1996A, (FGIC Insured),
5.25% 12/01/25......... Aaa AAA 9,182
3,000 Houston, Texas, Water and
Sewer Systems Revenue
Refunding, Junior Lien,
Series 1997D, (FGIC
Insured),
5.00% 12/01/25......... Aaa AAA 2,638
6,145 Houston, Texas, Water and
Sewer Systems Revenue,
Unrefunded Balance,
Prior Lien, Series
1992B,
5.90% 12/01/03......... A3 A+ 6,334
500 Irving, Texas, Waterworks
and Sewer Revenue,
Series 1998,
4.75% 06/15/18......... Aa2 AA 440
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,500 Klein, Texas, Independent
School District, GO,
Series 1999A, (PSF-GTD
Insured), Prerefunded
08/01/09 @ 100,
5.13% 08/01/15......... Aaa AAA $ 1,450
2,000 Lewisville, Texas,
Independent School
District, GO Refunding,
Series 1992, (PSF-GTD
Insured),
6.10% 08/15/02......... Aaa NR 2,060
1,085 Lewisville, Texas,
Independent School
District, GO Refunding,
Series 1992, (PSF-GTD
Insured), Prerefunded
08/15/02 @ 100,
6.25% 08/15/05......... Aaa NR 1,122
3,815 Lewisville, Texas,
Independent School
District, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD
Insured),
6.25% 08/15/05......... Aaa NR 3,930
1,000 Lubbock, Texas,
Independent School
District, GO, Series
1991A, (PSF-GTD
Insured), Prerefunded
08/15/00 @ 100,
6.30% 08/15/04......... NR AAA 1,008
620 Mesquite, Texas,
Independent School
District 1, GO
Refunding, Series 1992,
(PSF-GTD Insured),
Prerefunded
02/15/02 @ 100,
5.75% 08/15/03......... Aaa AAA 632
5,000 Mesquite, Texas,
Independent School
District 1, GO
Refunding, Series 1993,
(PSF-GTD Insured),
5.30% 08/15/06......... Aaa AAA 5,058
1,380 Mesquite, Texas,
Independent School
District 1, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD
Insured),
5.75% 08/15/03......... Aaa AAA 1,402
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
191
<PAGE> 196
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 5,000 North Central, Texas,
Health Facilities
Development
Corporation, Health
Facilities Revenue,
(Presbyterian
Healthcare Residential
Project) Series 1996B,
(MBIA Insured),
5.50% 06/01/16......... Aaa AAA $ 5,010
7,000 North Central, Texas,
Health Facilities
Development
Corporation, Revenue
Refunding, (Baylor
Health Care Systems
Project) Series 1995,
5.50% 05/15/13......... Aa3 AA- 6,864
1,320 Pearland, Texas,
Independent School
District, GO Refunding,
Series 1998, (PSF-GTD
Insured),
4.750%+ 02/15/08....... Aaa AAA 867
1,500 Pearland, Texas,
Independent School
District, GO, Series
2000, (PSFG Insured),
5.50% 02/15/20(a)...... Aaa AAA 1,458
1,835 Plano, Texas, Independent
School District, GO,
Series 1995, (PSF-GTD
Insured),
7.00% 02/15/05......... Aaa AAA 1,990
1,000 Port of Houston Authority
of Harris County,
Texas, Revenue
Refunding, Series 1992,
(MBIA Insured),
6.30% 05/01/04......... Aaa AAA 1,027
8,100 Red River Authority,
Texas, PCR, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.88% 04/01/17......... Baa2 BBB 8,174
4,000 Red River Authority,
Texas, PCR Refunding,
Series 1991, (AMBAC
Insured),
5.20% 07/01/11......... Aaa AAA 3,946
5,000 Round Rock, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD
Insured),
5.00% 08/01/18(a)...... Aaa AAA 4,583
465 San Antonio, Texas,
Refunding GO, Series
1992, Prerefunded
08/01/02 @ 100,
5.50% 08/01/05......... Aa2 AA+ 473
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 4,185 San Antonio, Texas,
Unrefunded GO, Series
1992,
5.50% 08/01/05......... Aa2 AA+ $ 4,237
3,500 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue, (Texas
Health Resources
Systems Project) Series
1997A, (MBIA Insured),
5.75% 02/15/11......... Aaa AAA 3,606
3,300 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue, (Texas
Health Resources
Systems Project) Series
1997A, (MBIA Insured),
5.75% 02/15/08......... Aaa AAA 3,414
2,200 Tarrant County, Texas,
Water Control and
Improvement District
Number 1, Water Revenue
Refunding, Series 1992,
5.70% 03/01/01......... A1 AA 2,229
5,000 Tarrant County, Texas,
Water Control and
Improvement District
Number 1, Water Revenue
Refunding, Series 1992,
Prerefunded 03/01/01 @
100,
5.90% 03/01/03......... Aaa AA 5,076
500 Texas State, College
Student Loan Authority,
GO, Series 1994, AMT,
5.75% 08/01/11......... Aa1 AA 503
1,000 Texas State, College
Student Loan Authority,
GO, Series 1996, AMT,
5.00% 08/01/12......... Aa1 AA 952
6,835 Texas State, College
Student Loan Authority,
GO, Series 1997, (GTD
STD LNS),
5.25% 08/01/07......... Aa1 AA 6,871
1,425 Texas State, College
Student Loan Authority,
GO, Series 1997, AMT,
(GTD STD LNS),
5.00% 08/01/05......... Aa1 AA 1,420
2,640 Texas State, College
Student Loan Authority,
GO, Series 1999, AMT,
5.00% 08/01/05......... Aa1 AA 2,631
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
192
<PAGE> 197
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,565 Texas State, College
Student Loan Authority,
GO, Series 1999, AMT,
5.00% 08/01/07......... Aa1 AA $ 3 ,526
8,805 Texas State, Department
of Housing and
Community Affairs,
Single-Family Revenue,
Series 1997A-1, AMT,
(GNMA/FNMA COLL), (MBIA
Insured),
5.25% 09/01/13......... Aaa AAA 8,472
5,000 Texas State, GO
Refunding, Series
1992A,
5.80% 10/01/04......... Aa1 AA 5,190
2,955 Texas State, Port of
Corpus Christi, Revenue
Authority Refunding,
(Hoechst Celanese
Corporation Project),
Series 1992,
6.88% 04/01/17......... Baa2 BBB 2,982
5,000 Texas State, Public
Finance Authority,
Building Revenue
Refunding, Series
1992B, (AMBAC Insured),
6.10% 02/01/04......... Aaa AAA 5,211
1,200 Texas State, Public
Finance Authority, GO
Refunding, Series
1996C,
6.00% 10/01/06......... AA AA 1,267
3,500 Texas State, Texas A&M
University, Revenue,
Series 1999,
5.50% 05/15/20......... Aa2 AA+ 3,401
3,250 Texas State, Turnpike
Authority of Dallas,
North Tollway Revenue,
(President George Bush
Turnpike Project)
Series 1996, (AMBAC
Insured),
5.450%+ 01/01/09....... Aaa AAA 2,035
3,000 Texas State, Water
Development Board,
Revenue, Series 1997,
5.00% 07/15/12......... Aa1 AAA 2,911
1,850 Texas State, Water
Development GO, Series
1997,
5.50% 08/01/07......... Aa1 AA 1,904
5,000 Texas State, Water
Development GO, Series
1997,
5.25% 08/01/28......... Aa1 AA 4,601
2,000 Texas State, Water
Financial Assistance
GO, Series 1999, (MBIA
Insured),
5.50% 08/01/29......... Aaa AAA 1,913
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 6,000 Texas, Municipal Power
Agency, Revenue
Refunding, Series 1992,
(MBIA Insured),
Prerefunded
09/01/02 @ 102,
5.90% 09/01/04......... Aaa AAA $ 6,269
15,000 Texas, Municipal Power
Agency, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.25% 09/01/05......... Aaa AAA 15,171
1,100 Texas, Water Development
Board, Revenue, Series
1999B,
5.63% 07/15/21......... Aa1 AAA 1,086
2,925 Texas, Water Development
Board, State Revolving
Fund Revenue, Senior
Lien, Series 1998A,
5.25% 07/15/11......... Aa1 AAA 2,931
4,085 Travis County, Texas,
Health Facilities
Development
Corporation, Revenue,
(Ascension Health
Credit Project) Series
1999A, (MBIA Insured),
5.75% 11/15/09......... Aaa AAA 4,241
3,250 Travis County, Texas,
Limited Tax GO
Refunding, Series
1992A,
(MBIA Insured),
5.50% 03/01/03......... Aaa AAA 3,313
3,500 Travis County, Texas,
Limited Tax GO
Refunding, Series
1992A, (MBIA Insured),
5.60% 03/01/04......... Aaa AAA 3,569
1,500 Travis County, Texas,
Limited Tax GO
Refunding,
Series 1992A,
(MBIA Insured),
5.75% 03/01/06......... Aaa AAA 1,531
500 Trinity River Authority,
Texas, PCR, (Texas
Instruments Inc.
Project) Series 1996,
AMT,
6.20% 03/01/20......... NR A 504
3,885 Trinity River Authority,
Texas, Ten Mile
Revenue, Series 1992,
(AMBAC Insured),
5.70% 08/01/03......... Aaa AAA 3,958
4,610 Waxahachie, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD
Insured),
6.600%+ 08/15/17....... Aaa NR 1,555
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
193
<PAGE> 198
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 4,755 Waxahachie, Texas,
Independent School
District, Prerefunded,
GO, Series 2000,
(PSF-GTD Insured),
6.450%+ 08/15/15....... Aaa NR $ 1,860
--------
294,176
--------
ALABAMA -- 0.5%
1,750 Mobile, Alabama,
Industrial Development
Board, Environmental
Improvement Revenue,
(International Paper
Company Project) Series
2000A, AMT,
6.70% 03/01/24......... A3 BBB+ 1,768
--------
ARIZONA -- 0.6%
2,100 Coconino County, Arizona,
Unified School District
Number 1, GO Refunding,
Series 1992, (AMBAC
Insured),
5.80% 07/01/02......... Aaa AAA 2,127
--------
CONNECTICUT -- 1.5%
5,000 Connecticut State, GO,
Series 1995A,
5.63% 03/15/09......... Aa3 AA 5,097
--------
FLORIDA -- 0.3%
1,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (United
Dominion Realty Trust -
Andover Project) Series
1996E, AMT, Mandatory
Put
05/01/08 @ 100,
6.35% 05/01/26......... NR BBB+ 1,025
--------
ILLINOIS -- 1.3%
3,000 Illinois State, Toll
Highway Authority, Toll
Revenue, Series 1992A,
Prerefunded 01/01/03 @
102,
5.75% 01/01/17......... A1 AA- 3,124
1,100 Rosemont, Illinois, GO,
Series 1991B, (FGIC
Insured),
6.40% 02/01/03......... Aaa AAA 1,134
--------
4,258
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MAINE -- 0.6%
$ 1,000 Bucksport, Maine, Solid
Waste Disposal Revenue,
(Champion International
Corporation Project)
Series 1985,
6.25% 05/01/10......... Baa1 BBB $ 1,011
1,000 Maine, Municipal Board
Bank, Revenue, Series
1990D,
7.10% 11/01/01......... Aa3 A+ 1,034
--------
2,045
--------
MICHIGAN -- 1.4%
4,600 Detroit, Michigan, GO
Refunding, Series
1995B,
6.50% 04/01/02......... Baa1 A- 4,729
--------
MISSISSIPPI -- 0.8%
2,600 Warren County,
Mississippi,
Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A,
6.70% 08/01/18......... A3 BBB+ 2,631
--------
TENNESSEE -- 1.0%
3,135 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical
Center Project) Series
1993, (FSA Insured),
5.50% 10/01/07......... Aaa AAA 3,205
--------
WASHINGTON -- 1.3%
2,000 Washington State, GO,
Series 1991B,
Prerefunded 06/01/01 @
100,
6.30% 06/01/02......... Aa1 AA+ 2,042
2,425 Washington State, GO,
Series 1995C,
5.45% 07/01/07......... Aa1 AA+ 2,471
--------
4,513
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $322,001)........................ 325,574
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
194
<PAGE> 199
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 3.6%
(Cost $11,995)
11,995 Nations Municipal Reserves#........... $ 11,995
--------
TOTAL INVESTMENTS
(Cost $333,996*)............. 100.9% 337,569
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (0.9)%
Cash.................................. $ 1
Receivable for Fund shares sold....... 397
Dividends receivable.................. 29
Interest receivable................... 4,177
Payable for Fund shares redeemed...... (59)
Investment advisory fee payable....... (72)
Administration fee payable............ (57)
Shareholder servicing and
distribution fees payable........... (3)
Distributions payable................. (1,407)
Payable for investment securities
purchased........................... (6,045)
Accrued Trustees'/Directors' fees and
expenses............................ (18)
Accrued expenses and other
liabilities......................... (106)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... (3,163)
--------
NET ASSETS..................... 100.0% $334,406
========
NET ASSETS CONSIST OF:
Undistributed net investment
income.............................. $ 238
Accumulated net realized loss on
investments sold.................... (3,523)
Net unrealized appreciation of
investments......................... 3,573
Paid-in capital....................... 334,118
--------
NET ASSETS............................ $334,406
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($326,322,803 / 32,630,419 shares
outstanding)........................ $10.00
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($6,075,516 / 607,531
shares outstanding)................. $10.00
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.34
INVESTOR B SHARES:
Net asset value and offering price per
share** ($2,004,946 / 200,489 shares
outstanding)........................ $10.00
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,606 / 261 shares
outstanding)........................ $10.00
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $3,572 on
investment securities was comprised of gross appreciation of $6,220 and gross
depreciation of $2,648 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$333,997.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# 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) Security purchased on a "when-issued" basis.
Nations Texas Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
MBIA 20.17%
PSF-GTD 18.26%
SEE NOTES TO FINANCIAL STATEMENTS.
195
<PAGE> 200
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 101.3%
TEXAS -- 93.7%
$ 400 Athens, Texas, Independent
School District, GO,
Series 1999, (PSF-GTD
Insured),
5.25% 08/15/20.......... NR AAA $ 375
500 Austin, Texas, Public
Improvement, GO, Series
1999,
5.38% 09/01/18.......... Aa2 AA 484
500 Dallas County, Texas, GO,
Series 1995,
5.25% 08/15/14.......... Aaa AAA 491
500 Dallas-Fort Worth, Texas,
Regional Airport Revenue
Refunding, Series 1994A,
(MBIA Insured),
6.00% 11/01/09.......... Aaa AAA 521
400 Fort Worth, Texas, Higher
Education Financial
Corporation, Higher
Education Revenue,
(Texas Christian
University Project)
Series 1997,
5.00% 03/15/17.......... Aa3 AA- 369
500 Grand Prairie, Texas,
Independent School
District, GO, Refunding,
Series 1996, (PSF-GTD),
5.20% 02/15/24.......... Aaa AAA 457
500 Gulf Coast, Texas, Waste
Disposal Authority,
Revenue Refunding,
(Houston Light and Power
Company Project) Series
1992A, (MBIA Insured),
6.38% 04/01/12.......... Aaa AAA 525
500 Harris County, Texas,
Health Facilities
Development Authority,
Revenue, (Memorial
Hospital Systems
Project) Series 1997A,
(MBIA Insured),
6.00% 06/01/10.......... Aaa AAA 526
500 Harris County, Texas,
Health Facilities
Development Corporation,
Hospital Revenue, (Texas
Children's Hospital
Project) Series 1995,
5.50% 10/01/19.......... Aa2 AA 492
500 Klein, Texas, Independent
School District, GO,
Series 1999A, (PSFG
Insured), Prerefunded
08/01/09 @ 100,
5.13% 08/01/15.......... Aaa AAA 484
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 500 Lower Neches Valley
Authority, Texas,
Industrial Development
Corporation, Revenue
Refunding, (Mobil Oil
Refining Corporation
Project) Series 1997,
5.80% 05/01/22.......... Aaa AAA $ 488
600 Northside, Texas,
Independent School
District, GO, Series
1999,
4.75% 08/15/18.......... Aaa AAA 529
1,000 Red River Authority of
Texas, PCR, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.88% 04/01/17.......... Baa2 BBB 1,009
600 Round Rock, Texas,
Independent School
District, GO, Series
2000,
(PSF-GTD Insured),
5.00% 08/01/18(a)....... Aaa AAA 550
585 Sherman, Texas,
Independent School
District, GO, Series
1995, (PSF-GTD Insured),
Prerefunded 02/15/05 @
100,
6.50% 02/15/20.......... Aaa AAA 625
1,000 Tarrant County, Texas,
Health Facilities
Development Corporation,
Health Systems Revenue,
(Harris Methodist Health
Systems Project) Series
1994, (MBIA-IBC
Insured),
6.00% 09/01/10.......... Aaa AAA 1,063
500 Texas State, College
Student Loan Authority,
GO, Series 1994, AMT,
5.75% 08/01/11.......... Aa1 AA 503
455 Texas State, GO, Series
1999,
5.25% 08/01/21.......... Aa1 AA 427
375 Texas State, Veterans
Housing Assistance GO
Refunding, Series 1994C,
6.40% 12/01/09.......... Aa1 AA 383
500 Texas State, Water
Financial Assistance GO,
Series 1999, (MBIA
Insured),
5.50% 08/01/29.......... Aaa AAA 478
400 Texas, Water Development
Board, Revenue, Series
1999B,
5.63% 07/15/21.......... Aa1 AAA 395
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
196
<PAGE> 201
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 500 Travis County, Texas,
Health Facilities
Development Corporation,
Revenue, (Ascension
Health Credit Project)
Series 1999A, (AMBAC
Insured),
5.88% 11/15/24.......... Aaa AAA $ 496
500 Trinity River Authority,
Texas, PCR, (Texas
Instruments Inc.
Project) Series 1996,
AMT,
6.20% 03/01/20.......... NR A 504
500 University of Texas,
University Finance
Systems Revenue, Series
1995A,
5.20% 08/15/17.......... Aa1 AAA 475
1,000 Waxahachie, Texas,
Independent School
District, GO, Series
2000,
(PSF-GTD Insured),
6.600%+ 08/15/17........ Aaa NR 337
-------
12,986
-------
OHIO -- 7.6%
1,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project) Series 1993,
Prerefunded
12/01/04 @ 101,
6.13% 12/01/13.......... NR NR 1,054
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $13,606).......................... 14,040
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 2.2%
(Cost $298)
298 Nations Municipal Reserves#............. $ 298
-------
TOTAL INVESTMENTS
(Cost $13,904*)................ 103.5% 14,338
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... (3.5)%
Receivable for Fund shares sold......... $ 1
Interest receivable..................... 204
Receivable from investment advisor...... 22
Payable for Fund shares redeemed........ (42)
Administration fee payable.............. (2)
Shareholder servicing and
distribution fees payable............. (5)
Distributions payable................... (43)
Payable for investment securities
purchased............................. (551)
Accrued Trustees'/Directors' fees
and expenses.......................... (17)
Accrued expenses and other
liabilities........................... (51)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. (484)
-------
NET ASSETS....................... 100.0% $13,854
=======
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 47
Accumulated net realized loss on
investments sold...................... (486)
Net unrealized appreciation of
investments........................... 434
Paid-in capital......................... 13,859
-------
NET ASSETS.............................. $13,854
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
197
<PAGE> 202
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
VALUE
--------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($7,868,462 / 822,725
shares outstanding)................... $9.56
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($332,942 / 34,809 shares
outstanding).......................... $9.56
=====
Maximum sales charge............. 4.75%
Maximum offering price per share........ $10.04
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,568,528 / 582,203 shares
outstanding).......................... $9.56
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($83,729 / 8,755 shares
outstanding).......................... $9.56
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $434 on
investment securities was comprised of gross appreciation of $518 and gross
depreciation of $84 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $13,904.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# 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) Security purchased on a "when-issued" basis.
Nations Texas Municipal Bond Fund had the following insurance concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
MBIA 22.47%
PSF-GTD 17.11%
Nations Texas Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 17.61%
SEE NOTES TO FINANCIAL STATEMENTS.
198
<PAGE> 203
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.2%
ALASKA -- 1.4%
$ 6,500 North Slope Borough,
Alaska, Capital
Appreciation GO, Series
1998A,
(MBIA Insured),
4.700%+ 06/30/09....... Aaa AAA $ 3,950
--------
DISTRICT OF COLUMBIA
-- 1.3%
2,085 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1997B, AMT, (FGIC
Insured),
5.75% 10/01/03......... Aaa AAA 2,137
1,640 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1997B, AMT, (FGIC
Insured),
5.50% 10/01/04......... Aaa AAA 1,669
--------
3,806
--------
MAINE -- 0.8%
2,500 Baileyville, Maine, PCR,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.75% 06/01/05......... Baa2 NR 2,400
--------
VIRGINIA -- 94.7%
2,000 Alexandria, Virginia,
Redevelopment and
Housing Authority,
Multi-Family Housing
Mortgage Revenue,
(Buckingham Village
Apartments Project)
Series 1996A, AMT,
6.05% 07/01/16......... NR A 2,033
1,000 Amherst, Virginia,
Industrial Development
Authority, Revenue
Refunding,
(Georgia-Pacific
Corporation Project)
Series 1998, AMT,
5.25% 02/01/11......... Baa2 NR 955
3,285 Arlington County,
Virginia, GO Refunding,
Series 1993,
6.00% 06/01/12......... Aaa AAA 3,535
2,900 Arlington County,
Virginia, GO, Series
1991, Prerefunded
12/01/01 @ 102,
5.90% 12/01/03......... Aaa AAA 3,016
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 3,000 Arlington County,
Virginia, GO, Series
1993,
5.00% 07/15/03......... Aaa AAA $ 3,031
2,345 Arlington County,
Virginia, GO, Series
1994,
5.40% 08/01/02......... Aaa AAA 2,388
2,000 Arlington County,
Virginia, Industrial
Development Authority,
Facilities Revenue
Refunding,
(Lee Gardens Housing
Corporation-Housing
Mortgage - Woodbury
Park Apartments
Project) Series 1998A,
5.45% 01/01/29......... NR A 1,810
1,000 Arlington County,
Virginia, Industrial
Development Authority,
Facilities Revenue,
(The Nature Conservancy
Project) Series 1997A,
5.45% 07/01/27......... Aa1 NR 952
1,000 Arlington County,
Virginia, Industrial
Development Authority,
Hospital Facilities
Revenue, (Arlington
Hospital Project)
Series 1991A,
Prerefunded
09/01/01 @ 102,
6.65% 09/01/05......... Aaa NR 1,048
2,000 Arlington County,
Virginia, Industrial
Development Authority,
IDR Refunding, (Ogden
Martin Systems Project)
Series 1998A,
(FSA Insured),
5.25% 01/01/05......... Aaa AAA 2,028
3,515 Arlington County,
Virginia, Industrial
Development Authority,
Revenue, (Ogden Martin
Systems of
Union-Alexandria/
Arlington Project)
Series 1998B, AMT,
(FSA Insured),
5.25% 01/01/09......... Aaa AAA 3,454
2,000 Arlington County,
Virginia, Industrial
Development Authority,
Revenue, (Ogden Martin
Systems of
Union-Alexandria/
Arlington Project)
Series 1998B, AMT,
(FSA Insured),
5.25% 01/01/10......... Aaa AAA 1,952
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
199
<PAGE> 204
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 3,455 Augusta County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Augusta
Hospital Corporation
Project) Series 1991,
Prerefunded
09/01/01 @ 102,
7.00% 09/01/21......... A AAA $ 3,629
2,000 Brunswick County,
Virginia, Industrial
Development Authority,
Correctional Facility
Lease Revenue, Series
1996,
(MBIA Insured),
5.25% 07/01/04......... Aaa AAA 2,031
1,000 Charlottesville-Albemarle,
Virginia, Airport
Authority, Revenue
Refunding, Series 1995,
AMT,
6.13% 12/01/09......... NR BBB 1,021
6,195 Chesapeake, Virginia, GO
Refunding, Series 1993,
5.13% 12/01/05......... Aa3 AA 6,285
1,000 Chesapeake, Virginia, GO,
Series 1992,
5.70% 08/01/01......... Aa3 AA 1,016
1,000 Chesapeake, Virginia, GO,
Series 1998, (State Aid
Withholding),
4.65% 08/01/11......... Aa3 AA 945
1,525 Chesapeake, Virginia,
Public Improvement GO,
Series 1996, (State Aid
Withholding),
5.00% 05/01/03......... Aa3 AA 1,539
2,000 Chesapeake, Virginia,
Water and Sewer GO,
Series 1995A, (State
Aid Withholding),
7.00% 12/01/09......... Aa3 AA 2,219
2,000 Chesterfield County,
Virginia, GO Refunding,
Series 1991,
5.90% 07/15/02......... Aaa AAA 2,056
1,000 Chesterfield County,
Virginia, GO, Series
1990B,
6.50% 01/01/02......... Aaa AAA 1,032
2,120 Chesterfield County,
Virginia, GO, Series
1990B, Prerefunded
01/01/01 @ 102,
6.70% 01/01/11......... NR AAA 2,200
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Chesterfield County,
Virginia, Water and
Sewer Authority,
Revenue Refunding,
Series 1992,
6.20% 11/01/05......... Aa2 AA $ 1,050
2,000 Chesterfield County,
Virginia, Water and
Sewer Authority,
Revenue Refunding,
Series 1992A,
5.50% 11/01/00......... Aa2 AA 2,016
2,020 Chesterfield County,
Virginia, Water and
Sewer Authority,
Revenue Refunding,
Series 1992A,
5.63% 11/01/01......... Aa2 AA 2,055
1,320 Covington-Allegheny
County, Virginia,
Industrial Development
Authority, PCR
Refunding, (Westvaco
Corporation Project)
Series 1994,
5.90% 03/01/05......... A2 A- 1,379
3,385 Fairfax County, Virginia,
Economic Development
Authority, Resource
Recovery, Refunding
Revenue, Series 1998A,
AMT, (AMBAC Insured),
6.05% 02/01/09......... Aaa AAA 3,614
12,585 Fairfax County, Virginia,
Economic Development
Authority, Resource
Recovery, Revenue
Refunding, Series
1998A, AMT, (AMBAC
Insured),
5.95% 02/01/07......... Aaa AAA 13,247
1,000 Fairfax County, Virginia,
GO, Series 1998, (State
Aid Withholding),
4.80% 04/01/10......... Aa1 AA+ 971
2,000 Fairfax County, Virginia,
Public Improvement GO,
Series 1997A,
6.00% 06/01/04......... Aaa AAA 2,091
3,135 Fairfax County, Virginia,
Water and Sewer
Authority, Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.10% 11/15/04......... Aaa AAA 3,175
2,000 Fairfax County, Virginia,
Water Authority,
Revenue, Unrefunded
Balance, Series 1992,
6.00% 04/01/22......... Aa2 AA 2,046
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
200
<PAGE> 205
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,000 Fairfax County, Virginia,
Water Authority, Water
Revenue Refunding,
Series 1997,
5.00% 04/01/29......... Aa2 AA $ 1,761
2,000 Giles County, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Facilities
Revenue, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.63% 12/01/22......... Baa2 BBB 2,000
5,000 Goochland County,
Virginia, Industrial
Development Authority,
(Old Dominion Electric
Cooperative Project)
Series 1998, AMT,
4.25% 12/01/02......... NR NR 4,832
1,200 Halifax County, Virginia,
Industrial Development
Authority, Hospital
Revenue Refunding,
(Halifax Regional
Hospital, Inc. Project)
Series 1998,
4.90% 09/01/10......... NR A 1,092
2,500 Hampton Roads, Virginia,
Sanitation District,
Capital Improvement
Revenue Refunding,
Series 1993,
4.50% 10/01/02......... Aa3 AA 2,493
5,000 Hanover County, Virginia,
Industrial Development
Authority, Revenue,
(Memorial Regional
Medical Center Project)
Series 1995,
(MBIA Insured),
5.50% 08/15/25......... Aaa AAA 4,719
2,105 Henrico County, Virginia,
Industrial Development
Authority, Revenue,
Series 1994,
7.50% 08/01/02......... Aa2 AA 2,231
3,500 Henrico County, Virginia,
Industrial Development
Authority, Solid Waste
Revenue,
(Browning-Ferris
Project) Series 1995,
AMT, (GTY-AGMT),
Mandatory Put
12/01/05 @ 100,
5.30% 12/01/11......... B1 BB- 3,146
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,500 Henrico County, Virginia,
Water and Sewer
Authority, Revenue
Refunding, Series 1992,
6.20% 05/01/04......... Aa2 AAA* $ 1,539
2,420 Henrico County, Virginia,
Water and Sewer
Authority, Revenue
Refunding, Series 1992,
6.30% 05/01/05......... Aa2 AAA* 2,489
1,915 James City and County,
Virginia, GO, Series
1995, (FGIC Insured,
State Aid Withholding),
5.00% 12/15/08......... Aaa AAA 1,919
1,000 Leesburg, Virginia, GO
Refunding, Series 1993,
5.50% 08/01/06......... A1 A+ 1,024
2,000 Loudoun County, Virginia,
Improvement GO
Refunding, Series
1993A, (State Aid
Withholding),
5.00% 10/01/02......... Aa1 AA 2,019
1,500 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center
Project) Series 1995,
(FSA Insured),
5.50% 06/01/08......... Aaa AAA 1,527
1,000 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center
Project) Series 1995,
(FSA Insured),
5.60% 06/01/09......... Aaa AAA 1,021
5,000 Loudoun County, Virginia,
Industrial Development
Authority, Revenue,
(Air Force Retired
Officers - Falcons
Landing Project) Series
1994A, Prerefunded
11/01/04 @ 103,
8.75% 11/01/24......... Aaa AAA 5,902
1,000 Loudoun County, Virginia,
Sanitation Authority,
Water and Sewer Revenue
Refunding, Series 1992,
(FGIC Insured),
5.80% 01/01/01......... Aaa AAA 1,012
1,750 Loudoun County, Virginia,
Sanitation Authority,
Water and Sewer
Revenue, Series 1998,
(MBIA Insured),
4.75% 01/01/30......... Aaa AAA 1,463
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
201
<PAGE> 206
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,140 Lynchburg, Virginia,
Public Improvement GO,
Series 1997,
5.40% 05/01/17......... Aa3 AA $ 1,129
1,000 Medical College of
Virginia, Hospital
Authority, General
Revenue, Series 1998,
(MBIA Insured),
4.80% 07/01/11......... Aaa AAA 954
1,000 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1992A, (MBIA Insured),
6.50% 10/01/05......... Aaa AAA 1,052
5,000 Newport News, Virginia,
Public Improvement GO
Refunding, Series
1993B, (State Aid
Withholding),
5.20% 11/01/04......... Aa2 AA 5,085
1,000 Newport News, Virginia,
Water and Sewer
Authority, GO
Refunding, Series
1993B, (State Aid
Withholding),
5.10% 11/01/03......... Aa2 AA 1,013
1,020 Newport News, Virginia,
Water and Sewer
Authority, GO, Series
1992A,
5.50% 06/01/01......... Aa2 AA 1,033
1,095 Newport News, Virginia,
Water and Sewer
Authority, GO, Series
1992A,
5.60% 06/01/02......... Aa2 AA 1,117
1,000 Norfolk, Virginia,
Capital Improvement GO
Refunding, Series
1992A, Prerefunded
02/01/01 @ 102,
5.90% 02/01/06......... Aaa AAA 1,033
2,250 Norfolk, Virginia,
Redevelopment and
Housing Authority,
Educational Facilities
Revenue, (Tidewater
Community College
Campus Project) Series
1995,
5.88% 11/01/15......... Aa1 AA 2,313
2,000 Norfolk, Virginia, Water
Revenue, Series 1995,
(MBIA Insured),
5.70% 11/01/10......... Aaa AAA 2,071
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Portsmouth, Virginia, GO
Refunding, Series 1993,
5.00% 08/01/02......... A3 AA- $ 1,007
1,000 Portsmouth, Virginia, GO
Refunding, Series 1993,
5.25% 08/01/04......... A3 AA- 1,015
1,750 Portsmouth, Virginia,
Public Improvement, GO,
Series 1991,
Prerefunded
08/01/00 @ 102,
6.70% 08/01/03......... NR AA- 1,799
1,735 Portsmouth, Virginia,
Public Improvement, GO,
Series 1991,
Prerefunded
08/01/00 @ 102,
6.80% 08/01/06......... NR AA- 1,784
1,000 Portsmouth, Virginia,
Public Improvement, GO,
Series 1991,
Prerefunded
08/01/00 @ 102,
6.80% 08/01/09......... NR AA- 1,028
1,465 Prince William County,
Virginia, Improvement
GO Refunding, Series
1992A,
6.20% 12/01/10......... Aa2 AA 1,513
1,775 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding, (Potomac
Hospital Corporation
Project) Series 1995,
6.55% 10/01/05......... Aaa NR 1,861
1,300 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding, (Prince
William Hospital
Project) Series 1993,
5.63% 04/01/12......... A2 NR 1,263
1,000 Prince William County,
Virginia, Park
Authority, Water and
Sewer Systems, Revenue
Refunding, Series 1994,
6.30% 10/15/07......... NR BBB+ 1,071
3,000 Prince William County,
Virginia, Service
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.00% 07/01/21......... Aaa AAA 2,688
1,000 Richmond, Virginia, GO
Refunding, Series
1995B,
(FGIC Insured, State
Aid Withholding),
5.00% 01/15/21......... Aaa AAA 900
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
202
<PAGE> 207
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,300 Richmond, Virginia,
Public Improvement GO
Refunding, Series
1993A, (State Aid
Withholding),
6.50% 01/15/02......... A1 AA $ 2,369
1,000 Richmond, Virginia,
Public Improvement GO,
Series 1991A,
Prerefunded
01/15/01 @ 102,
6.20% 01/15/03......... Aaa AA 1,035
1,000 Richmond, Virginia,
Public Improvement GO,
Series 1991A,
Prerefunded
01/15/01 @ 102,
6.70% 01/15/11......... Aaa AA 1,039
1,430 Richmond, Virginia,
Public Improvement GO,
Series 1993B, (State
Aid Withholding),
5.50% 07/15/09......... A1 AA 1,475
2,855 Richmond, Virginia,
Public Improvement,
Refunding GO, Series
1999A,
(FSA Insured),
5.00% 01/15/19......... Aaa AAA 2,629
1,115 Roanoke County, Virginia,
IDR, (Hollins College
Project) Series 1998,
5.20% 03/15/17......... NR A 1,025
3,295 Roanoke, Virginia, Public
Improvement GO
Refunding, Series
1992B, Prerefunded
08/01/01 @ 100.5,
6.00% 08/01/03......... Aa3 AA 3,375
1,100 Spotsylvania County,
Virginia, GO Refunding,
Series 1998,
(FSA Insured),
4.38% 07/15/05......... Aaa AAA 1,068
1,900 Spotsylvania County,
Virginia, GO Refunding,
Series 1998,
(FSA Insured),
4.40% 07/15/06......... Aaa AAA 1,830
2,000 Spotsylvania County,
Virginia, GO Refunding,
Series 1998,
(FSA Insured),
4.40% 07/15/07......... Aaa AAA 1,905
1,580 Spotsylvania County,
Virginia, Public
Improvement GO, Series
1992,
5.20% 07/15/01......... A1 A+ 1,593
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,320 Spotsylvania County,
Virginia, Public
Improvement GO, Series
1992, Prerefunded
07/15/02 @ 102,
5.88% 07/15/09......... A1 A+ $ 2,418
2,535 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue,
(Mary Baldwin College
Project) Series 1996,
6.60% 11/01/14......... NR NR 2,575
1,110 Suffolk, Virginia, GO
Refunding, Series 1993,
5.40% 08/01/04......... Aa3 A+ 1,133
1,500 Suffolk, Virginia, GO
Refunding, Series 1993,
5.75% 08/01/08......... Aa3 A+ 1,548
2,000 Upper Occoquan, Virginia,
Sewer Authority,
Regional Sewer Revenue,
Series 1991,
(MBIA Insured),
Prerefunded
07/01/01 @ 102,
6.25% 07/01/05......... Aaa AAA 2,082
1,700 Virginia State, Virginia
Commonwealth
University, Revenue
Refunding, Series
1994D,
4.35% 07/01/02......... A1 AA- 1,667
1,000 Virginia Beach, Virginia,
GO Refunding, Series
1992,
5.55% 02/01/01......... Aa1 AA 1,012
2,300 Virginia Beach, Virginia,
GO Refunding, Series
1993,
5.40% 07/15/08......... Aa1 AA 2,365
1,000 Virginia Beach, Virginia,
GO, Series 1989A,
6.90% 10/01/00......... Aa1 AA 1,014
1,000 Virginia Beach, Virginia,
GO, Series 1990A,
6.85% 06/01/01......... Aa1 AA 1,024
1,000 Virginia Beach, Virginia,
GO, Series 1990A,
Prerefunded
06/01/00 @ 102,
6.95% 06/01/06......... NR NR 1,024
3,060 Virginia Beach, Virginia,
Public Improvement GO,
Series 2000,
5.50% 03/01/17......... Aa1 AA 3,063
2,805 Virginia Beach, Virginia,
Public Improvement GO,
Series 2000,
5.50% 03/01/18......... Aa1 AA 2,789
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
203
<PAGE> 208
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,245 Virginia Commonwealth,
Transportation Board,
Transportation Revenue
Refunding, (U.S. Route
58 Corridor Program)
Series 1997C,
5.13% 05/15/19......... Aa1 AA $ 1,162
1,210 Virginia Port Authority,
Port Facilities
Revenue, Series 1997,
AMT, (MBIA Insured),
6.00% 07/01/07......... Aaa AAA 1,268
2,465 Virginia Port Authority,
Virginia, Commonwealth
Port Fund Revenue,
Series 1996, AMT,
5.55% 07/01/12......... Aa1 AA 2,491
1,000 Virginia Port Authority,
Virginia, Commonwealth
Port Fund Revenue,
Series 1997, AMT, (MBIA
Insured),
5.65% 07/01/17......... Aaa AAA 989
2,655 Virginia State Housing,
Housing Development
Authority, Revenue,
(Rental Housing
Project) Series 2000B,
AMT,
5.88% 08/01/15(a)...... Aa1 AA+ 2,665
1,175 Virginia State, Higher
Educational
Institutions GO, Series
1991A,
6.00% 06/01/01......... Aaa AAA 1,196
1,430 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
1995D-3,
6.00% 01/01/12......... Aa1 AA+ 1,471
1,470 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
1995D-3,
6.00% 07/01/12......... Aa1 AA+ 1,512
1,695 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
1995D-3,
6.10% 01/01/15......... Aa1 AA+ 1,733
1,000 Virginia State, Housing
Development Authority,
Multi-Family Housing
Revenue, Series 1998B,
AMT,
4.40% 11/01/03......... Aa1 AA+ 982
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,000 Virginia State, Public
Building Authority,
Building Revenue
Refunding,
(Correctional
Facilities Project)
Series 1992A,
5.80% 08/01/02......... Aa1 AA $ 2,047
1,480 Virginia State, Public
School Authority,
Revenue Refunding,
Series 1993B, (State
Aid Withholding),
5.10% 01/01/05......... Aa2 AA 1,495
1,000 Virginia State, Public
School Authority,
Revenue, Series 1991A,
Prerefunded
08/01/01 @ 102,
6.50% 08/01/08......... Aa2 AA 1,045
2,195 Virginia State, Public
School Authority,
Revenue, Series 1993A,
(State Aid
Withholding),
5.40% 01/01/08......... Aa2 AA 2,231
1,120 Virginia State, Resource
Authority,
Infrastructure Revenue,
Series 2000A, (MBIA
Insured),
5.50% 05/01/22......... Aaa AAA 1,091
2,970 Virginia State, Resource
Authority, Sewer
Systems Revenue
Refunding,
(Harrisonburg-
Rockingham Project)
Series 1998,
5.00% 05/01/18......... NR AA 2,737
1,000 Virginia State, Resource
Authority, Sewer
Systems Revenue,
(Hopewell Regional
Wastewater Facilities
Project) Series 1995A,
AMT,
6.00% 10/01/15......... NR AA 1,024
2,470 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue
Refunding, (Washington
County Service Project)
Series 1993,
5.15% 10/01/07......... NR AA 2,485
1,020 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Suffolk Project)
Series 1996A,
5.50% 04/01/17......... NR AA 1,013
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
204
<PAGE> 209
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Sussex Service
Authority Project)
Series 1998,
4.63% 10/01/18......... NR AA $ 868
2,000 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Sussex Service
Authority Project)
Series 1998,
4.75% 10/01/25......... NR AA 1,699
5,345 Virginia State,
Transportation Board
Authority,
Transportation Contract
Revenue, (Northern
Virginia Transportation
District Project)
Series 1996A,
5.13% 05/15/21......... Aa1 AA 4,885
3,150 Virginia State,
Transportation Board
Authority,
Transportation Revenue
Refunding, (Route 28
Project) Series 1992,
6.00% 04/01/02......... Aa1 AA 3,228
3,000 Virginia State,
Transportation Board
Authority,
Transportation Revenue
Refunding, (U.S. Route
58 Corridor Program)
Series 1993A,
4.90% 05/15/03......... Aa1 AA 3,012
5,390 Virginia State,
Transportation Board
Authority,
Transportation Revenue
Refunding, (U.S. Route
58 Corridor Program)
Series 1993A,
5.50% 05/15/09......... Aa1 AA 5,488
2,105 Virginia State,
Transportation Board
Authority,
Transportation Revenue,
(U.S. Route 58 Corridor
Development Project)
Series 1993B,
5.10% 05/15/05......... Aa2 AA 2,122
2,350 Virginia, Biotechnology
Research Park
Authority, Lease
Revenue, (Biotechnology
Two Project) Series
1996,
5.75% 09/01/05......... Aa1 AA 2,448
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,475 Virginia, Chesapeake Bay
Bridge and Tunnel
Commission District,
Revenue, Series 1995,
(FGIC Insured),
5.88% 07/01/10......... Aaa AAA $ 2,591
2,000 Virginia, College
Building Authority,
Educational Facilities
Revenue Refunding,
(University of Richmond
Project) Series 1992,
5.63% 11/01/02......... NR AA 2,030
2,000 Virginia, College
Building Authority,
Facilities Revenue,
(Equipment Leasing
Program) Series 1997,
5.00% 02/01/02......... Aa2 AA 2,013
2,300 Virginia, College
Building Authority,
Virginia Educational
Facilities Revenue,
(Public Higher
Education Financing
Program) Series 1999A,
5.38% 09/01/12......... Aa1 AA 2,333
5,000 Virginia, Southeastern
Public Service
Authority, Revenue
Refunding, Series
1993A,
(MBIA Insured),
5.10% 07/01/08......... Aaa AAA 5,011
775 Washington County,
Virginia, Industrial
Development Authority,
Hospital Facility
Revenue Refunding,
(Johnson Memorial
Hospital Project)
Series 1995,
5.63% 07/01/02......... A2 NR 783
1,000 Washington County,
Virginia, Industrial
Development Authority,
Hospital Facility
Revenue Refunding,
(Johnston Memorial
Hospital Project)
Series 1995,
Prerefunded 07/01/05 @
102,
6.00% 07/01/14......... A2 NR 1,059
--------
270,001
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $277,997)........................ 280,157
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
205
<PAGE> 210
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.4%
(Cost $3,859)
3,859 Nations Municipal Reserves#........... $ 3,859
--------
TOTAL INVESTMENTS
(Cost $281,856*)............. 99.6% 284,016
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 0.4%
Cash.................................. $ 1
Receivable for investment
securities sold..................... 2,880
Receivable for Fund shares sold....... 564
Interest receivable................... 4,497
Payable for Fund shares redeemed...... (318)
Investment advisory fee payable....... (37)
Administration fee payable............ (49)
Shareholder servicing and
distribution fees payable........... (19)
Distributions payable................. (975)
Payable for investment securities
purchased........................... (5,223)
Accrued Trustees'/Directors' fees
and expenses........................ (28)
Accrued expenses and other
liabilities......................... (116)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... 1,177
--------
NET ASSETS..................... 100.0% $285,193
========
NET ASSETS CONSIST OF:
Undistributed net investment
income.............................. $ 138
Accumulated net realized loss on
investments sold.................... (2,152)
Net unrealized appreciation of
investments......................... 2,160
Paid-in capital....................... 285,047
--------
NET ASSETS............................ $285,193
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($228,697,804 / 21,767,522 shares
outstanding)........................ $10.51
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($46,663,420 / 4,441,335
shares outstanding)................. $10.51
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.86
INVESTOR B SHARES:
Net asset value and offering price per
share** ($9,073,430 / 863,661 shares
outstanding)........................ $10.51
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($758,553 / 72,203 shares
outstanding)........................ $10.51
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $2,160 on
investment securities was comprised of gross appreciation of $5,806 and gross
depreciation of $3,646 for Federal income tax purposes. At March 31, 2000,
the aggregate cost of securities for Federal income tax purposes was
$281,856.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# 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) Security purchased on a "when-issued" basis.
Nations Virginia Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at March 31, 2000 (as a percentage of net
assets):
Water Revenue 13.73%
Transportation Revenue 11.66%
SEE NOTES TO FINANCIAL STATEMENTS.
206
<PAGE> 211
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 102.2%
MISSISSIPPI -- 1.8%
$ 500 Warren County,
Mississippi,
Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A,
6.70% 08/01/18.......... Baa1 BBB+ $ 506
-------
VIRGINIA -- 100.4%
1,000 Arlington County,
Virginia, Industrial
Development Authority,
Facilities Revenue
Refunding, (Lee Gardens
Housing
Corporation-Housing
Mortgage - Woodbury Park
Apartments Project)
Series 1998A,
5.45% 01/01/29.......... NR A 905
1,000 Chesapeake, Virginia,
Water and Sewer GO,
Series 1995A,
5.38% 12/01/20.......... Aa3 AA 968
500 Covington-Allegheny
County, Virginia, IDR
Refunding, (Westvaco
Corporation Project)
Series 1994,
6.65% 09/01/18.......... A2 A- 525
1,000 Danville, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Danville
Regional Medical Center
Project) Series 1998,
(AMBAC Insured),
5.25% 10/01/28.......... Aaa AAA 924
500 Fairfax County, Virginia,
Industrial Development
Authority, Health Care
Revenue Refunding,
(Inova Health Systems
Project) Series 1996,
5.50% 08/15/10.......... Aa2 AA 505
1,000 Fairfax County, Virginia,
Public Improvement GO,
Series 1999B,
5.50% 12/01/16.......... Aaa AAA 1,006
1,000 Fairfax County, Virginia,
Water and Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.50% 11/15/13.......... Aaa AAA 1,008
500 Fairfax County, Virginia,
Water Authority, Revenue
Refunding, Series 1997,
5.00% 04/01/21.......... Aa2 AA 456
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$1,000 Fairfax County, Virginia,
Water Authority,
Revenue, Unrefunded
Balance, Series 1992,
6.00% 04/01/22.......... Aa2 AA $ 1,023
800 Giles County, Virginia,
Industrial Development
Authority, Exempt
Facilities Revenue,
(Hoechst Celanese
Corporation Project)
Series 1995, AMT,
5.95% 12/01/25.......... Baa2 BBB 713
1,000 Giles County, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Facilities
Revenue, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.63% 12/01/22.......... Baa2 BBB 1,000
400 Halifax County, Virginia,
Industrial Development
Authority, Hospital
Revenue Refunding,
(Halifax Regional
Hospital, Inc. Project)
Series 1998,
5.25% 09/01/17.......... NR A 350
500 Hanover County, Virginia,
Industrial Development
Authority, Revenue, (Bon
Secours Health Systems
Project) Series 1995,
(MBIA Insured),
5.50% 08/15/25.......... Aaa AAA 472
500 Henrico County, Virginia,
Industrial Development
Authority, Public
Facilities Lease
Revenue, Series 1994,
7.00% 08/01/13.......... Aa2 AA 556
500 Henry County, Virginia,
GO, Series 1994,
5.75% 07/15/07.......... A A 519
700 James City and County,
Virginia, GO, Series
1995, (FGIC Insured,
State Aid Withholding),
5.25% 12/15/14.......... Aaa AAA 695
765 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center Project)
Series 1995, (FSA
Insured),
5.60% 06/01/09.......... Aaa AAA 781
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
207
<PAGE> 212
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 500 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center Project)
Series 1995, (FSA
Insured),
5.80% 06/01/20.......... Aaa AAA $ 498
500 Peninsula Ports Authority,
Virginia, Health Care
Facilities Revenue
Refunding, (Riverside
Health System Project)
Series 1992A,
Prerefunded 07/01/02 @
102,
6.63% 07/01/18.......... Aa2 AA- 529
500 Pittsylvania County,
Virginia, Public
Improvement GO, Series
1994,
5.85% 07/01/08.......... A3 A 527
1,000 Prince William County,
Virginia, Industrial
Development Authority,
Lease Revenue, (ATCC
Project) Series 1996,
6.00% 02/01/14.......... A2 NR 999
500 Prince William County,
Virginia, Park
Authority, Revenue,
Series 1994, Prerefunded
10/15/04 @ 102,
6.88% 10/15/16.......... NR BBB+ 547
500 Richmond, Virginia, GO
Refunding, Series 1995B,
(FGIC Insured, State Aid
Withholding),
5.00% 01/15/21.......... Aaa AAA 450
800 Richmond, Virginia,
Metropolitan Expressway
Authority, Revenue
Refunding, Series 1992B,
(FGIC Insured),
6.25% 07/15/22.......... Aaa AAA 816
1,390 Rivanna, Virginia, Water
and Sewer Authority,
Regional Water and Sewer
Systems, Revenue
Refunding, Series 1991,
6.45% 10/01/12.......... Aa3 A+ 1,449
1,000 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue,
(Mary Baldwin College
Project) Series 1996,
6.60% 11/01/14.......... NR NR 1,016
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 500 Upper Occoquan, Virginia,
Sewer Authority,
Regional Sewer Revenue,
Series 1995A, (MBIA
Insured),
5.00% 07/01/25.......... Aaa AAA $ 441
500 Virginia Beach, Virginia,
Public Improvement GO
Refunding, Series 1994,
(State Aid Withholding),
5.75% 11/01/08.......... Aa1 AA 521
1,000 Virginia Beach, Virginia,
Public Improvement GO,
Series 2000,
5.50% 03/01/18.......... Aa1 AA 995
1,000 Virginia Commonwealth,
Transportation Board,
Transportation Program
Revenue, (Oak Grove
Connector Project)
Series 1997A,
5.25% 05/15/22.......... Aa1 AA 940
1,000 Virginia State, Housing
Development Authority,
Revenue, (Rental Housing
Project) Series 2000B,
AMT,
5.75% 08/01/13(a)....... Aa1 AA+ 1,004
640 Virginia State, Public
School Authority,
Revenue, Series 1994A,
(State Aid Withholding),
6.13% 08/01/11.......... Aa2 AA 672
1,070 Virginia State,
Residential Authority,
Infrastructure Revenue,
Series 2000A, (MBIA
Insured),
5.50% 05/01/21.......... Aaa AAA 1,045
820 Virginia State, Resource
Authority, Sewer Systems
Revenue Refunding,
(Harrisonburg-Rockingham
Project) Series 1998,
4.70% 05/01/11.......... NR AA 774
750 Virginia State, Resource
Authority, Sewer Systems
Revenue, (Hopewell
Regional Wastewater
Facilities Project)
Series 1995A, AMT,
6.00% 10/01/15.......... NR AA 768
500 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Fauquier County Water
and Sanitation Project)
Series 1994C,
6.13% 05/01/14.......... NR AA 520
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
208
<PAGE> 213
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S S&P
AMOUNT RATINGS VALUE
(000) (UNAUDITED) (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 800 West Point, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Revenue,
(Chesapeake Corporation
Project) Series 1994A,
AMT,
6.38% 03/01/19.......... Baa3 BB- $ 756
-------
27,673
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $27,998).......................... 28,179
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $93)
93 Nations Municipal Reserves#............. 93
-------
TOTAL INVESTMENTS
(Cost $28,091*)................ 102.5% 28,272
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... (2.5)%
Receivable for Fund shares sold......... $ 26
Interest receivable..................... 485
Receivable from investment advisor...... 24
Payable for Fund shares redeemed........ (35)
Administration fee payable.............. (5)
Shareholder servicing and
distribution fees payable............. (9)
Distributions payable................... (110)
Payable for investment securities
purchased............................. (995)
Accrued Trustees'/Directors' fees
and expenses.......................... (18)
Accrued expenses and other
liabilities........................... (56)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. (693)
-------
NET ASSETS....................... 100.0% $27,579
=======
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
--------------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 69
Accumulated net realized loss on
investments sold...................... (711)
Net unrealized appreciation of
investments........................... 181
Paid-in capital......................... 28,040
-------
NET ASSETS.............................. $27,579
=======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($16,377,891 / 1,732,833 shares
outstanding).......................... $9.45
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($590,110 / 62,481 shares
outstanding).......................... $9.44
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $9.91
INVESTOR B SHARES:
Net asset value and offering price per
share** ($10,608,180 / 1,122,419
shares outstanding)................... $9.45
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,842 / 301 shares
outstanding).......................... $9.45
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $181 on
investment securities was comprised of gross appreciation of $658 and gross
depreciation of $477 for Federal income tax purposes. At March 31, 2000, the
aggregate cost of securities for Federal income tax purposes was $28,091.
** 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) Security purchased on a "when-issued" basis.
Nations Virginia Municipal Bond Fund had the following industry concentration
greater than 10% at March 31, 2000 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 12.38%
Hospital Revenue 12.48%
Water Revenue 26.48%
SEE NOTES TO FINANCIAL STATEMENTS.
209
<PAGE> 214
[This page intentionally left blank.]
SEE NOTES TO FINANCIAL STATEMENTS.
210
<PAGE> 215
NATIONS FUNDS
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance
Corporation
AMBAC-TCRS American Municipal Bond Assurance
Corporation -- Transferable Custodial
Receipts
AMT Alternative Minimum Tax
CONNIE LEE College Construction Loan Insurance
Association
FGIC Financial Guaranty Insurance Company
FGIC-TCRS Financial Guaranty Insurance Company --
Transferable Custodial Receipts
FHLMC COLL Federal Home Loan Mortgage Corporation
collateral
FHA Federal Housing Authority
FHA COLL Federal Housing Authority collateral
FNMA COLL Federal National Mortgage Association
collateral
FSA Financial Security Assurance
GO General Obligation
GNMA COLL Government National Mortgage Association
collateral
GTY-AGMT Guarantee Agreement
GTD STD LNS Guaranteed Student Loans
IDR Industrial Development Revenue
MBIA Municipal Bond Insurance Association
MBIA-IBC Municipal Bond Insurance
Association -- Insured Bond Certificate
NR Not Rated
PCR Pollution Control Revenue
PSF-GTD Permanent School Fund Guarantee
SCSDE South Carolina School District Enhancement
SCH BD GTY School Bond Guarantee
VA COLL Veterans Administration collateral
VA Veterans Administration
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
211
<PAGE> 216
NATIONS FUNDS
STATEMENTS OF OPERATIONS
For the period ended March 31, 2000
<TABLE>
SHORT-TERM INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
INCOME BOND INCOME
------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 5,391 $ 46,682 $ 35,645
-------------- -------------- --------------
EXPENSES:
Investment advisory fee..................................... 384 3,674 3,273
Administration fee.......................................... 245 1,839 1,318
Transfer agent fees......................................... 51 376 280
Custodian fees.............................................. 10 58 46
Legal and audit fees........................................ 94 85 88
Trustees' fees and expenses................................. 19 19 19
Interest expense............................................ 5 2 5
Registration and filing fees................................ 36 30 36
Printing.................................................... 34 60 57
Other....................................................... 35 120 107
-------------- -------------- --------------
Subtotal................................................ 913 6,263 5,229
Shareholder servicing and distribution fees:
Investor A Shares......................................... 75 49 89
Investor B Shares......................................... 94 29 113
Investor C Shares......................................... 22 15 19
-------------- -------------- --------------
Total expenses.......................................... 1,104 6,356 5,450
Fees waived and/or expenses reimbursed by investment
advisor, administrator, and/or distributor................ (485) (1,817) (1,417)
-------------- -------------- --------------
Net expenses............................................ 619 4,539 4,033
-------------- -------------- --------------
NET INVESTMENT INCOME....................................... 4,772 42,143 31,612
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... (95) (2,370) (5,891)
Net change in unrealized appreciation/(depreciation) of
investments............................................... (1,712) (43,336) (40,480)
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on investments...... (1,807) (45,706) (46,371)
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 2,965 $ (3,563) $ (14,759)
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Represents financial information for the Pacific Horizon California
Municipal Bond Fund, which was reorganized into California Municipal Bond on
May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
212
<PAGE> 217
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
CALIFORNIA MUNICIPAL BOND
-------------------------------
FOR THE PERIOD FOR THE PERIOD FLORIDA GEORGIA MARYLAND
MAY 15, 1999 TO MARCH 1, 1999 INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA INTERMEDIATE
MARCH 31, TO MAY 14, MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
2000 1999(a) BOND BOND BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9,462 $ 2,368 $ 12,513 $ 8,249 $ 7,789 $ 1,265 $ 10,285
-------------- -------------- -------------- -------------- -------------- -------------- --------------
842 133 977 759 621 122 825
372 89 488 305 310 49 414
27 38 102 59 65 11 87
3 23 17 11 11 3 14
52 2 94 88 96 94 94
19 1 19 19 19 19 19
1 -- 3 1 4 -- --
-- 1 -- -- -- -- 3
30 -- 36 38 34 29 38
3 30 25 -- 18 -- 22
-------------- -------------- -------------- -------------- -------------- -------------- --------------
1,349 317 1,761 1,280 1,178 327 1,516
359 110 30 142 41 5 42
29 5 48 137 76 110 60
2 -- 11 --* 9 --* 4
-------------- -------------- -------------- -------------- -------------- -------------- --------------
1,739 432 1,850 1,559 1,304 442 1,622
(381) (14) (582) (413) (432) (193) (524)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
1,358 418 1,268 1,146 872 249 1,098
-------------- -------------- -------------- -------------- -------------- -------------- --------------
8,104 1,950 11,245 7,103 6,917 1,016 9,187
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(597) 1,093 (1,029) 376 (1,090) (740) (1,697)
(8,917) (3,924) (9,513) (7,575) (6,288) (648) (7,384)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(9,514) (2,831) (10,542) (7,199) (7,378) (1,388) (9,081)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ (1,410) $ (881) $ 703 $ (96) $ (461) $ (372) $ 106
============== ============== ============== ============== ============== ============== ==============
MARYLAND
MUNICIPAL
BOND
------------------------------------------------
<S> <C>
$ 1,789
--------------
183
74
17
4
106
19
--
3
32
--
--------------
438
4
162
2
--------------
606
(233)
--------------
373
--------------
1,416
--------------
(706)
(963)
--------------
(1,669)
--------------
$ (253)
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
213
<PAGE> 218
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
For the period ended March 31, 2000
<TABLE>
NORTH CAROLINA SOUTH CAROLINA
INTERMEDIATE NORTH CAROLINA INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND
-----------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 10,298 $ 2,217 $ 13,683
-------------- -------------- --------------
EXPENSES:
Investment advisory fee..................................... 823 213 1,051
Administration fee.......................................... 412 86 526
Transfer agent fees......................................... 86 18 106
Custodian fees.............................................. 15 4 18
Legal and audit fees........................................ 96 98 92
Trustees' fees and expenses................................. 19 19 19
Interest expense............................................ 4 2 2
Registration and filing fees................................ -- 1 1
Printing.................................................... 37 31 37
Other....................................................... 26 -- 33
-------------- -------------- --------------
Subtotal................................................ 1,518 472 1,885
Shareholder servicing and distribution fees:
Investor A Shares......................................... 24 3 48
Investor B Shares......................................... 59 228 83
Investor C Shares......................................... 1 --* 31
-------------- -------------- --------------
Total expenses.......................................... 1,602 703 2,047
Fees waived and/or expenses reimbursed by investment
advisor, administrator, and/or distributor................ (524) (236) (622)
-------------- -------------- --------------
Net expenses............................................ 1,078 467 1,425
-------------- -------------- --------------
NET INVESTMENT INCOME....................................... 9,220 1,750 12,258
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... (948) (723) 101
Net change in unrealized appreciation/(depreciation) of
investments............................................... (8,403) (1,801) (12,805)
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on investments...... (9,351) (2,524) (12,704)
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ (131) $ (774) $ (446)
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
214
<PAGE> 219
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
TENNESSEE TEXAS VIRGINIA
SOUTH CAROLINA INTERMEDIATE TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,669 $ 2,660 $ 578 $ 19,723 $ 833 $ 14,746 $ 1,501
-------------- -------------- -------------- -------------- -------------- -------------- --------------
158 215 55 1,529 77 1,181 141
65 108 22 764 31 593 57
17 23 5 157 7 119 16
3 5 2 26 2 20 3
105 89 95 90 100 93 101
19 19 19 19 19 19 19
1 --* -- 5 --* --* --
1 2 3 -- --* -- --*
29 29 27 39 27 39 33
-- -- -- 24 -- 30 --
-------------- -------------- -------------- -------------- -------------- -------------- --------------
398 490 228 2,653 263 2,094 370
3 21 2 16 1 125 2
99 27 43 21 63 95 121
1 --* 1 --* 1 9 --*
-------------- -------------- -------------- -------------- -------------- -------------- --------------
501 538 274 2,690 328 2,323 493
(218) (233) (166) (800) (176) (679) (213)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
283 305 108 1,890 152 1,644 280
-------------- -------------- -------------- -------------- -------------- -------------- --------------
1,386 2,355 470 17,833 681 13,102 1,221
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(567) (368) (63) (3,353) (244) (2,152) (171)
(927) (2,446) (607) (14,956) (636) (10,427) (1,345)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(1,494) (2,814) (670) (18,309) (880) (12,579) (1,516)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ (108) $ (459) $ (200) $ (476) $ (199) $ 523 $ (295)
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
215
<PAGE> 220
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
SHORT-TERM INTERMEDIATE
MUNICIPAL INCOME MUNICIPAL BOND
------------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99
----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income................................ $ 4,772 $ 4,730 $ 42,143 $ 41,590
Net realized gain/(loss) on investments.............. (95) 278 (2,370) 5,314
Net change in unrealized appreciation/(depreciation)
of investments..................................... (1,712) 286 (43,336) 406
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... 2,965 5,294 (3,563) 47,310
Distributions to shareholders from net investment
income:
Primary A Shares................................... (3,188) (2,942) (41,086) (40,911)
Investor A Shares.................................. (1,171) (1,154) (888) (525)
Investor B Shares.................................. (343) (509) (111) (86)
Investor C Shares.................................. (71) (125) (59) (67)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... -- -- (1,405) (5,775)
Investor A Shares.................................. -- -- (27) (69)
Investor B Shares.................................. -- -- (5) (15)
Investor C Shares.................................. -- -- (3) (10)
Net increase/(decrease) in net assets from Fund share
transactions....................................... (4,060) 21,296 (18,416) 61,477
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (5,868) 21,860 (65,563) 61,329
NET ASSETS:
Beginning of period.................................. 131,321 109,461 938,583 877,254
-------------- -------------- -------------- --------------
End of period........................................ $ 125,453 $ 131,321 $ 873,020 $ 938,583
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 39 $ 39 $ 792 $ 752
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Represents financial information for the Pacific Horizon California
Municipal Bond Fund, which was reorganized into California Municipal Bond on
May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
216
<PAGE> 221
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
CALIFORNIA FLORIDA INTERMEDIATE
MUNICIPAL INCOME MUNICIPAL BOND MUNICIPAL BOND
------------------------------------------------ -------------------------------
---------------------------------
YEAR ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 5/14/99(a) 2/28/99(a) 3/31/00 3/31/99
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 31,612 $ 29,528 $ 8,104 $ 1,950 $ 10,113 $ 11,245 $ 10,814
(5,891) 2,167 (597) 1,093 2,447 (1,029) 292
(40,480) 970 (8,917) (3,924) 1,310 (9,513) 29
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(14,759) 32,665 (1,410) (881) 13,870 703 11,135
(29,366) (27,799) (928) -- -- (10,463) (10,023)
(1,715) (1,064) (7,051) (1,930) (10,081) (553) (578)
(460) (578) (119) (20) (32) (186) (167)
(75) (84) (6) -- -- (42) (46)
(710) (2,148) (47) -- -- -- --
(29) (95) (486) -- (4,299) -- --
(15) (61) (10) -- (26) -- --
(2) (9) (1) -- -- -- --
(34,283) 185,849 (14,809) (9,699) 7,770 (21,123) 38,788
-------------- -------------- -------------- -------------- -------------- -------------- --------------
(81,414) 186,676 (24,867) (12,530) 7,202 (31,664) 39,109
680,214 493,538 208,657 221,187 213,985 253,819 214,710
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 598,800 $ 680,214 $ 183,790 $ 208,657 $ 221,187 $ 222,155 $ 253,819
============== ============== ============== ============== ============== ============== ==============
$ 931 $ 602 $ 313 $ 292 $ 292 $ 13 $ --
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
217
<PAGE> 222
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
FLORIDA GEORGIA INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND
------------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99
----------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income................................ $ 7,103 $ 6,878 $ 6,917 $ 6,921
Net realized gain/(loss) on investments.............. 376 891 (1,090) 667
Net change in unrealized appreciation/(depreciation)
of investments..................................... (7,575) (346) (6,288) 119
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... (96) 7,423 (461) 7,707
Distributions to shareholders from net investment
income:
Primary A Shares................................... (3,838) (3,320) (5,865) (5,859)
Investor A Shares.................................. (2,706) (2,901) (736) (740)
Investor B Shares.................................. (557) (658) (286) (289)
Investor C Shares.................................. (1) -- (31) (33)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... -- -- (166) (496)
Investor A Shares.................................. -- -- (20) (77)
Investor B Shares.................................. -- -- (10) (30)
Investor C Shares.................................. -- -- (1) (4)
Net increase/(decrease) in net assets from Fund share
transactions....................................... (9,231) 111,028 (10,542) 17,195
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (16,429) 111,572 (18,118) 17,374
NET ASSETS:
Beginning of period.................................. 158,028 46,456 160,886 143,512
-------------- -------------- -------------- --------------
End of period........................................ $ 141,599 $ 158,028 $ 142,768 $ 160,886
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 139 $ 99 $ 96 $ 11
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
218
<PAGE> 223
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
GEORGIA MARYLAND INTERMEDIATE MARYLAND
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99 3/31/00 3/31/99
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,016 $ 874 $ 9,187 $ 8,126 $ 1,416 $ 1,167
(740) 52 (1,697) 1,039 (706) 60
(648) 160 (7,384) (51) (963) 66
-------------- -------------- -------------- -------------- -------------- --------------
(372) 1,086 106 9,114 (253) 1,293
(503) (418) (8,207) (7,192) (774) (619)
(97) (64) (738) (703) (74) (77)
(414) (393) (224) (210) (562) (470)
--* --* (17) (22) (6) (1)
-- -- (83) -- (9) (2)
-- -- (8) -- (1) --*
-- -- (3) -- (8) (1)
-- -- (1) -- --* --
2,967 4,770 (6,228) 100,167 2,392 12,763
-------------- -------------- -------------- -------------- -------------- --------------
1,581 4,981 (15,403) 101,154 705 12,886
23,681 18,700 207,072 105,918 34,911 22,025
-------------- -------------- -------------- -------------- -------------- --------------
$ 25,262 $ 23,681 $ 191,669 $ 207,072 $ 35,616 $ 34,911
============== ============== ============== ============== ============== ==============
$ 49 $ 7 $ 0 $ 1 $ 13 $ 7
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
219
<PAGE> 224
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE NORTH CAROLINA
MUNICIPAL BOND MUNICIPAL BOND
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income................................ $ 9,220 $ 9,107 $ 1,750 $ 1,501
Net realized gain/(loss) on investments.............. (948) 609 (723) 53
Net change in unrealized appreciation/(depreciation)
of investments..................................... (8,403) 84 (1,801) 149
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... (131) 9,800 (774) 1,703
Distributions to shareholders from net investment
income:
Primary A Shares................................... (8,560) (8,419) (829) (497)
Investor A Shares.................................. (434) (423) (52) (63)
Investor B Shares.................................. (222) (259) (868) (944)
Investor C Shares.................................. (3) (6) (1) --*
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... (288) (474) -- --
Investor A Shares.................................. (15) (25) -- --
Investor B Shares.................................. (10) (18) -- --
Investor C Shares.................................. --* --* -- --
Net increase/(decrease) in net assets from Fund share
transactions....................................... (9,980) 14,118 120 9,529
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (19,643) 14,294 (2,404) 9,728
NET ASSETS:
Beginning of period.................................. 210,277 195,983 41,980 32,252
-------------- -------------- -------------- --------------
End of period........................................ $ 190,634 $ 210,277 $ 39,576 $ 41,980
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 291 $ 81 $ 21 $ 21
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
220
<PAGE> 225
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
SOUTH CAROLINA INTERMEDIATE SOUTH CAROLINA TENNESSEE INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99 3/31/00 3/31/99
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 12,258 $ 12,740 $ 1,386 $ 974 $ 2,355 $ 2,286
101 1,038 (567) 28 (368) 235
(12,805) (235) (927) 45 (2,446) 35
-------------- -------------- -------------- -------------- -------------- --------------
(446) 13,543 (108) 1,047 (459) 2,556
(10,924) (11,626) (957) (518) (1,877) (1,811)
(886) (755) (50) (49) (375) (371)
(329) (288) (377) (405) (102) (104)
(118) (72) (3) (2) (1) --
(331) (857) -- -- (40) --
(27) (59) -- -- (8) --
(12) (25) -- -- (3) --
(4) (6) -- -- --* --
(24,176) (6,838) 15,365 3,368 (4,911) 4,759
-------------- -------------- -------------- -------------- -------------- --------------
(37,253) (6,983) 13,870 3,441 (7,776) 5,029
269,568 276,551 24,835 21,394 55,108 50,079
-------------- -------------- -------------- -------------- -------------- --------------
$ 232,315 $ 269,568 $ 38,705 $ 24,835 $ 47,332 $ 55,108
============== ============== ============== ============== ============== ==============
$ 213 $ 25 $ 14 $ 11 $ 3 $ 4
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
221
<PAGE> 226
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE TEXAS INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND
--------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income................................ $ 470 $ 459 $ 17,833 $ 18,330
Net realized gain/(loss) on investments.............. (63) 132 (3,353) 1,846
Net change in unrealized appreciation/(depreciation)
of investments..................................... (607) (50) (14,956) (900)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... (200) 541 (476) 19,276
Distributions to shareholders from net investment
income:
Primary A Shares................................... (262) (243) (17,447) (18,065)
Investor A Shares.................................. (37) (36) (304) (175)
Investor B Shares.................................. (168) (177) (82) (82)
Investor C Shares.................................. (4) (2) --* (7)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... -- -- (71) (1,579)
Investor A Shares.................................. -- -- (1) (16)
Investor B Shares.................................. -- -- (1) (9)
Investor C Shares.................................. -- -- --* --*
Net increase/(decrease) in net assets from Fund share
transactions....................................... 254 (8) (47,692) 10,224
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (417) 75 (66,074) 9,567
NET ASSETS:
Beginning of period.................................. 11,032 10,957 400,480 390,913
-------------- -------------- -------------- --------------
End of period........................................ $ 10,615 $ 11,032 $ 334,406 $ 400,480
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 22 $ 23 $ 238 $ 53
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
222
<PAGE> 227
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
TEXAS VIRGINIA INTERMEDIATE VIRGINIA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00 3/31/99 3/31/00 3/31/99 3/31/00 3/31/99
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 681 $ 720 $ 13,102 $ 11,920 $ 1,221 $ 1,160
(244) 339 (2,152) 279 (171) 138
(636) (219) (10,427) 784 (1,345) (23)
-------------- -------------- -------------- -------------- -------------- --------------
(199) 840 523 12,983 (295) 1,275
(411) (402) (10,494) (9,050) (710) (599)
(17) (21) (2,216) (2,450) (36) (50)
(251) (294) (357) (377) (475) (511)
(3) (3) (31) (43) --* --*
-- -- (22) -- -- --
-- -- (5) -- -- --
-- -- (1) -- -- --
-- -- --* -- -- --
(1,971) (333) 2,368 57,724 1,636 2,011
-------------- -------------- -------------- -------------- -------------- --------------
(2,852) (213) (10,235) 58,787 120 2,126
16,706 16,919 295,428 236,641 27,459 25,333
-------------- -------------- -------------- -------------- -------------- --------------
$ 13,854 $ 16,706 $ 285,193 $ 295,428 $ 27,579 $ 27,459
============== ============== ============== ============== ============== ==============
$ 47 $ 31 $ 139 $ 146 $ 69 $ 7
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
223
<PAGE> 228
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INCOME
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 6,609 $ 65,869 4,720 $ 47,562
Issued as reinvestment of dividends....................... 2 27 9 90
Redeemed.................................................. (4,936) (49,439) (3,946) (39,739)
------ -------- ------ --------
Net increase/(decrease)................................... 1,675 $ 16,457 783 $ 7,913
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 2,439 $ 24,297 4,979 $ 50,187
Issued as reinvestment of dividends....................... 70 804 92 931
Redeemed.................................................. (3,799) (37,957) (3,872) (39,023)
------ -------- ------ --------
Net increase/(decrease)................................... (1,290) $(12,856) 1,199 $ 12,095
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 2 $ -- 419 $ 4,222
Issued as reinvestment of dividends....................... 27 284 42 426
Redeemed.................................................. (701) (7,019) (451) (4,539)
------ -------- ------ --------
Net increase/(decrease)................................... (672) $ (6,735) 10 $ 109
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 55 $ 541 511 $ 5,138
Issued as reinvestment of dividends....................... 6 68 11 115
Redeemed.................................................. (154) (1,535) (405) (4,074)
------ -------- ------ --------
Net increase/(decrease)................................... (93) $ (926) 117 $ 1,179
====== ======== ====== ========
Total net increase/(decrease)............................. (380) $ (4,060) 2,109 $ 21,296
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
224
<PAGE> 229
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 23,175 $ 228,548 18,458 $ 190,928
Issued as reinvestment of dividends....................... 91 973 121 1,162
Redeemed.................................................. (25,494) (252,077) (13,596) (140,738)
------- --------- ------- ---------
Net increase/(decrease)................................... (2,228) $ (22,556) 4,983 $ 51,352
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 2,325 $ 23,295 1,515 $ 15,629
Issued as reinvestment of dividends....................... 37 400 32 338
Redeemed.................................................. (1,907) (19,018) (609) (6,296)
------- --------- ------- ---------
Net increase/(decrease)................................... 455 $ 4,677 938 $ 9,671
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 82 $ 820 54 $ 560
Issued as reinvestment of dividends....................... 6 68 6 59
Redeemed.................................................. (57) (558) (8) (84)
------- --------- ------- ---------
Net increase/(decrease)................................... 31 $ 330 52 $ 535
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 65 $ 664 68 $ 704
Issued as reinvestment of dividends....................... 5 59 7 71
Redeemed.................................................. (162) (1,590) (83) (856)
------- --------- ------- ---------
Net increase/(decrease)................................... (92) $ (867) (8) $ (81)
======= ========= ======= =========
Total net increase/(decrease)............................. (1,834) $ (18,416) 5,965 $ 61,477
======= ========= ======= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
225
<PAGE> 230
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL INCOME
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
-------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 10,052 $ 109,003 11,061 $127,340
Issued in exchange for assets of NationsBank Common Trust
Municipal Bond Fund (Note 8)............................ -- -- 11,784 135,044
Issued as reinvestment of dividends....................... 35 410 43 488
Redeemed.................................................. (13,758) (148,807) (7,333) (84,501)
------- --------- ------ --------
Net increase/(decrease)................................... (3,671) $ (39,394) 15,555 $178,371
======= ========= ====== ========
INVESTOR A SHARES:
Sold...................................................... 5,826 $ 63,453 4,937 $ 56,960
Issued in exchange for A Shares of Pacific Horizon
National Bond Fund (Note 8)............................. 1,684 19,123 -- --
Issued as reinvestment of dividends....................... 98 1,136 48 556
Redeemed.................................................. (6,738) (73,931) (4,168) (48,138)
------- --------- ------ --------
Net increase/(decrease)................................... 870 $ 9,781 817 $ 9,378
======= ========= ====== ========
INVESTOR B SHARES:
Sold...................................................... 75 $ 820 135 $ 1,553
Issued as reinvestment of dividends....................... 24 278 27 307
Redeemed.................................................. (479) (5,194) (301) (3,462)
------- --------- ------ --------
Net increase/(decrease)................................... (380) $ (4,096) (139) $ (1,602)
======= ========= ====== ========
INVESTOR C SHARES:
Sold...................................................... 41 $ 453 55 $ 637
Issued as reinvestment of dividends....................... 6 70 7 77
Redeemed.................................................. (101) (1,097) (88) (1,012)
------- --------- ------ --------
Net increase/(decrease)................................... (54) $ (574) (26) $ (298)
======= ========= ====== ========
Total net increase/(decrease)............................. (3,235) $ (34,283) 16,207 $185,849
======= ========= ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
226
<PAGE> 231
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
CALIFORNIA MUNICIPAL BOND
PERIOD ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 2000** MAY 14, 1999(a) FEBRUARY 28, 1999(a)
------------------- ------------------ --------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold....................................... 3,709 $ 27,884 -- $ -- -- $ --
Issued as reinvestment of dividends........ 24 161 -- -- -- --
Redeemed................................... (697) (6,294) -- -- -- --
------- -------- ------ -------- ------ --------
Net increase/(decrease).................... 3,036 $ 21,751 -- $ -- -- $ --
======= ======== ====== ======== ====== ========
INVESTOR A SHARES:
Sold....................................... 1,406 $ 11,864 904 $ 6,861 7,925 $ 60,153
Issued as reinvestment of dividends........ 629 4,499 130 989 1,220 9,312
Redeemed................................... (7,400) (54,760) (2,361) (17,923) (8,401) (64,141)
------- -------- ------ -------- ------ --------
Net increase/(decrease).................... (5,365) $(38,397) (1,327) $(10,073) 744 $ 5,324
======= ======== ====== ======== ====== ========
INVESTOR B SHARES:
Sold....................................... 402 $ 2,873 98 $ 744 358 $ 2,735
Issued as reinvestment of dividends........ 12 82 2 12 6 47
Redeemed................................... (194) (1,382) (50) (381) (44) (336)
------- -------- ------ -------- ------ --------
Net increase/(decrease).................... 220 $ 1,573 50 $ 375 320 $ 2,446
======= ======== ====== ======== ====== ========
INVESTOR C SHARES:
Sold....................................... 36 $ 260 -- $ -- -- $ --
Issued as reinvestment of dividends........ 1 6 -- -- -- --
Redeemed................................... --* (2) -- -- -- --
------- -------- ------ -------- ------ --------
Net increase/(decrease).................... 37 $ 264 -- $ -- -- $ --
======= ======== ====== ======== ====== ========
Total net increase/(decrease).............. (2,072) $(14,809) (1,277) $ (9,698) 1,064 $ 7,770
======= ======== ====== ======== ====== ========
</TABLE>
---------------
(a) Represents financial information for the Pacific Horizon California
Municipal Bond Fund, which was reorganized into California Municipal Bond on
May 21, 1999.
* Amount represents less than $500 or 500 shares, as applicable.
** California Municipal Bond Primary A and Investor C Shares commenced
operations on May 21, 1999, and July 29, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
227
<PAGE> 232
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 4,567 $ 47,567 5,968 $ 64,595
Issued as reinvestment of dividends....................... 5 62 9 96
Redeemed.................................................. (6,217) (64,778) (3,163) (34,173)
------ -------- ------ --------
Net increase/(decrease)................................... (1,645) $(17,149) 2,814 $ 30,518
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 564 $ 5,837 1,475 $ 15,944
Issued as reinvestment of dividends....................... 37 418 36 384
Redeemed.................................................. (847) (8,755) (996) (10,763)
------ -------- ------ --------
Net increase/(decrease)................................... (246) $ (2,500) 515 $ 5,565
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 43 $ 450 205 $ 2,103
Issued as reinvestment of dividends....................... 11 124 9 102
Redeemed.................................................. (77) (812) (78) (727)
------ -------- ------ --------
Net increase/(decrease)................................... (23) $ (238) 136 $ 1,478
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 24 $ 250 182 $ 1,969
Issued as reinvestment of dividends....................... 2 22 3 33
Redeemed.................................................. (146) (1,508) (71) (775)
------ -------- ------ --------
Net increase/(decrease)................................... (120) $ (1,236) 114 $ 1,227
====== ======== ====== ========
Total net increase/(decrease)............................. (2,034) $(21,123) 3,579 $ 38,788
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
228
<PAGE> 233
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,531 $ 33,504 2,451 $ 24,796
Issued in exchange for Emerald Shares of Emerald
Florida Tax-Exempt Fund (Note 8)........................ -- -- 4,083 40,619
Issued as reinvestment of dividends....................... 13 136 16 149
Redeemed.................................................. (2,949) (28,008) (1,560) (15,848)
------ -------- ------ --------
Net increase/(decrease)................................... 595 $ 5,632 4,990 $ 49,716
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 424 $ 3,903 447 $ 4,495
Issued in exchange for Class A Shares of Emerald
Florida Tax-Exempt Fund (Note 8)........................ -- -- 7,877 78,347
Issued as reinvestment of dividends....................... 212 2,187 215 2,170
Redeemed.................................................. (1,994) (19,023) (2,195) (22,090)
------ -------- ------ --------
Net increase/(decrease)................................... (1,358) $(12,933) 6,344 $ 62,922
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 192 $ 1,831 199 $ 1,997
Issued as reinvestment of dividends....................... 26 268 29 296
Redeemed.................................................. (420) (4,030) (389) (3,923)
------ -------- ------ --------
Net increase/(decrease)................................... (202) $ (1,931) (161) $ (1,630)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* 2 $ 20
Issued as reinvestment of dividends....................... --* 1 --* --*
Redeemed.................................................. -- -- --* --*
------ -------- ------ --------
Net increase/(decrease)................................... -- $ 1 2 20
====== ======== ====== ========
Total net increase/(decrease)............................. (965) $ (9,231) 11,175 $111,028
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
229
<PAGE> 234
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,074 $ 32,266 2,261 $ 24,758
Issued as reinvestment of dividends....................... 2 20 2 18
Redeemed.................................................. (3,437) (36,098) (1,701) (18,648)
------ -------- ------ --------
Net increase/(decrease)................................... (361) $ (3,812) 562 $ 6,128
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 153 $ 1,558 1,823 $ 20,088
Issued as reinvestment of dividends....................... 57 644 57 624
Redeemed.................................................. (737) (7,745) (946) (10,421)
------ -------- ------ --------
Net increase/(decrease)................................... (527) $ (5,543) 934 $ 10,291
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 40 $ 420 119 $ 1,307
Issued as reinvestment of dividends....................... 10 117 14 154
Redeemed.................................................. (156) (1,645) (49) (536)
------ -------- ------ --------
Net increase/(decrease)................................... (106) $ (1,108) 84 $ 925
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 2 $ 19 10 $ 112
Issued as reinvestment of dividends....................... 2 29 3 31
Redeemed.................................................. (12) (127) (27) (292)
------ -------- ------ --------
Net increase/(decrease)................................... (8) $ (79) (14) $ (149)
====== ======== ====== ========
Total net increase/(decrease)............................. (1,002) $(10,542) 1,566 $ 17,195
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
230
<PAGE> 235
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,360 $12,830 274 $ 2,753
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (950) (8,918) (127) (1,275)
----- ------- ---- -------
Net increase/(decrease)................................... 410 $ 3,912 147 $ 1,478
===== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 7 $ 57 218 $ 2,211
Issued as reinvestment of dividends....................... 9 95 5 53
Redeemed.................................................. (80) (773) (13) (132)
----- ------- ---- -------
Net increase/(decrease)................................... (64) $ (621) 210 $ 2,132
===== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 158 $ 1,533 251 $ 2,532
Issued as reinvestment of dividends....................... 23 240 21 211
Redeemed.................................................. (224) (2,153) (155) (1,559)
----- ------- ---- -------
Net increase/(decrease)................................... (43) $ (380) 117 $ 1,184
===== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... 6 $ 58 -- $ --
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. --* (2) (3) (24)
----- ------- ---- -------
Net increase/(decrease)................................... 6 $ 56 (3) $ (24)
===== ======= ==== =======
Total net increase/(decrease)............................. 309 $ 2,967 471 $ 4,770
===== ======= ==== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
231
<PAGE> 236
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,481 $ 37,328 2,757 $ 30,674
Issued in exchange for assets of NationsBank Common Trust
Intermediate Municipal Bond Fund (Note 8)............... -- -- 8,515 93,840
Issued as reinvestment of dividends....................... 10 117 8 97
Redeemed.................................................. (4,062) (43,475) (2,414) (26,843)
------ -------- ------ --------
Net increase/(decrease)................................... (571) $ (6,030) 8,866 $ 97,768
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 268 $ 2,813 254 $ 2,836
Issued as reinvestment of dividends....................... 46 538 46 514
Redeemed.................................................. (309) (3,297) (162) (1,829)
------ -------- ------ --------
Net increase/(decrease)................................... 5 $ 54 138 $ 1,521
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 70 $ 745 175 $ 1,944
Issued as reinvestment of dividends....................... 16 184 14 150
Redeemed.................................................. (92) (978) (84) (935)
------ -------- ------ --------
Net increase/(decrease)................................... (6) $ (49) 105 $ 1,159
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ 3 7 $ 77
Issued as reinvestment of dividends....................... 1 14 2 17
Redeemed.................................................. (20) (220) (35) (375)
------ -------- ------ --------
Net increase/(decrease)................................... (19) $ (203) (26) $ (281)
====== ======== ====== ========
Total net increase/(decrease)............................. (591) $ (6,228) 9,083 $100,167
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
232
<PAGE> 237
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 660 $ 6,376 1,214 $12,110
Issued as reinvestment of dividends....................... --* 3 --* 4
Redeemed.................................................. (520) (4,995) (420) (4,201)
---- ------- ----- -------
Net increase/(decrease)................................... 140 $ 1,384 794 $ 7,913
==== ======= ===== =======
INVESTOR A SHARES:
Sold...................................................... 24 $ 225 27 $ 268
Issued as reinvestment of dividends....................... 6 59 6 60
Redeemed.................................................. (18) (171) (49) (491)
---- ------- ----- -------
Net increase/(decrease)................................... 12 $ 113 (16) $ (163)
==== ======= ===== =======
INVESTOR B SHARES:
Sold...................................................... 318 $ 3,045 630 $ 6,403
Issued as reinvestment of dividends....................... 41 424 34 341
Redeemed.................................................. (291) (2,790) (164) (1,731)
---- ------- ----- -------
Net increase/(decrease)................................... 68 $ 679 500 $ 5,013
==== ======= ===== =======
INVESTOR C SHARES:
Sold...................................................... 22 $ 210 -- $ --
Issued as reinvestment of dividends....................... --* 6 -- --
Redeemed.................................................. -- -- -- --
---- ------- ----- -------
Net increase/(decrease)................................... 22 $ 216 -- $ --
==== ======= ===== =======
Total net increase/(decrease)............................. 242 $ 2,392 1,278 $12,763
==== ======= ===== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
233
<PAGE> 238
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 4,170 $ 42,798 3,786 $ 41,006
Issued as reinvestment of dividends....................... 27 295 21 236
Redeemed.................................................. (5,060) (51,949) (2,549) (27,730)
------ -------- ------ --------
Net increase/(decrease)................................... (863) $ (8,856) 1,258 $ 13,512
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 102 $ 1,032 400 $ 4,296
Issued as reinvestment of dividends....................... 32 359 27 287
Redeemed.................................................. (129) (1,337) (285) (3,068)
------ -------- ------ --------
Net increase/(decrease)................................... 5 $ 54 142 $ 1,515
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 10 $ 88 48 $ 514
Issued as reinvestment of dividends....................... 15 172 18 193
Redeemed.................................................. (138) (1,421) (84) (903)
------ -------- ------ --------
Net increase/(decrease)................................... (113) $ (1,161) (18) $ (196)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* 3 1 6
Redeemed.................................................. (2) (20) (68) (719)
------ -------- ------ --------
Net increase/(decrease)................................... (2) $ (17) (67) $ (713)
====== ======== ====== ========
Total net increase/(decrease)............................. (973) $ (9,980) 1,315 $ 14,118
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
234
<PAGE> 239
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ -----------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,951 $ 18,576 1,145 $11,553
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (1,699) (16,015) (172) (1,735)
------ -------- ----- -------
Net increase/(decrease)................................... 252 $ 2,561 973 $ 9,818
====== ======== ===== =======
INVESTOR A SHARES:
Sold...................................................... 96 $ 907 162 $ 1,638
Issued as reinvestment of dividends....................... 3 37 2 21
Redeemed.................................................. (41) (392) (123) (1,251)
------ -------- ----- -------
Net increase/(decrease)................................... 58 $ 552 41 $ 408
====== ======== ===== =======
INVESTOR B SHARES:
Sold...................................................... 209 $ 1,979 281 $ 2,828
Issued as reinvestment of dividends....................... 63 655 63 640
Redeemed.................................................. (596) (5,677) (413) (4,165)
------ -------- ----- -------
Net increase/(decrease)................................... (324) $ (3,043) (69) $ (697)
====== ======== ===== =======
INVESTOR C SHARES:
Sold...................................................... 5 $ 50 --* $ --*
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. --* --* --* --*
------ -------- ----- -------
Net increase/(decrease)................................... 5 $ 50 -- $ --
====== ======== ===== =======
Total net increase/(decrease)............................. (9) $ 120 945 $ 9,529
====== ======== ===== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
235
<PAGE> 240
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 5,584 $ 57,593 2,584 $ 27,952
Issued as reinvestment of dividends....................... 12 121 15 164
Redeemed.................................................. (7,813) (80,572) (3,874) (41,931)
------ -------- ------ --------
Net increase/(decrease)................................... (2,217) $(22,858) (1,275) $(13,815)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 380 $ 4,012 602 $ 6,544
Issued as reinvestment of dividends....................... 36 394 34 364
Redeemed.................................................. (457) (4,743) (192) (2,081)
------ -------- ------ --------
Net increase/(decrease)................................... (41) $ (337) 444 $ 4,827
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 101 $ 1,047 218 $ 2,370
Issued as reinvestment of dividends....................... 19 209 18 190
Redeemed.................................................. (200) (2,051) (76) (824)
------ -------- ------ --------
Net increase/(decrease)................................... (80) $ (795) 160 $ 1,736
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 88 $ 910 191 $ 2,068
Issued as reinvestment of dividends....................... 8 94 4 46
Redeemed.................................................. (115) (1,190) (157) (1,700)
------ -------- ------ --------
Net increase/(decrease)................................... (19) $ (186) 38 $ 414
====== ======== ====== ========
Total net increase/(decrease)............................. (2,357) $(24,176) (633) $ (6,838)
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
236
<PAGE> 241
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 4,537 $ 43,900 503 $ 5,191
Issued as reinvestment of dividends....................... -- -- -- --
Redeemed.................................................. (2,827) (27,069) (183) (1,887)
------ -------- ---- -------
Net increase/(decrease)................................... 1,710 $ 16,831 320 $ 3,304
====== ======== ==== =======
INVESTOR A SHARES:
Sold...................................................... 52 $ 502 6 $ 67
Issued as reinvestment of dividends....................... 4 44 4 42
Redeemed.................................................. (66) (633) (55) (568)
------ -------- ---- -------
Net increase/(decrease)................................... (10) $ (87) (45) $ (459)
====== ======== ==== =======
INVESTOR B SHARES:
Sold...................................................... 28 $ 254 98 $ 1,013
Issued as reinvestment of dividends....................... 24 258 23 234
Redeemed.................................................. (191) (1,860) (75) (774)
------ -------- ---- -------
Net increase/(decrease)................................... (139) $ (1,348) 46 $ 473
====== ======== ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* 5 $ 48
Issued as reinvestment of dividends....................... --* 2 --* 2
Redeemed.................................................. (3) (33) --* --*
------ -------- ---- -------
Net increase/(decrease)................................... (3) $ (31) 5 $ 50
====== ======== ==== =======
Total net increase/(decrease)............................. 1,558 $ 15,365 326 $ 3,368
====== ======== ==== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
237
<PAGE> 242
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 654 $ 6,566 769 $ 8,052
Issued as reinvestment of dividends....................... 9 104 7 75
Redeemed.................................................. (952) (9,529) (440) (4,608)
---- ------- ---- -------
Net increase/(decrease)................................... (289) $(2,859) 336 $ 3,519
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 50 $ 485 169 $ 1,771
Issued as reinvestment of dividends....................... 28 306 25 265
Redeemed.................................................. (174) (1,746) (86) (896)
---- ------- ---- -------
Net increase/(decrease)................................... (96) $ (955) 108 $ 1,140
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 9 $ 87 30 $ 310
Issued as reinvestment of dividends....................... 7 81 7 77
Redeemed.................................................. (124) (1,235) (31) (317)
---- ------- ---- -------
Net increase/(decrease)................................... (108) $(1,067) 6 $ 70
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* 3 $ 30
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (3) (30) --* --*
---- ------- ---- -------
Net increase/(decrease)................................... (3) $ (30) 3 $ 30
==== ======= ==== =======
Total net increase/(decrease)............................. (496) $(4,911) 453 $ 4,759
==== ======= ==== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
238
<PAGE> 243
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 289 $ 2,781 189 $ 1,946
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (320) (3,071) (76) (777)
---- ------- ---- -------
Net increase/(decrease)................................... (31) $ (290) 113 $ 1,169
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 93 $ 902 34 $ 349
Issued as reinvestment of dividends....................... 2 19 3 32
Redeemed.................................................. (2) (18) (131) (1,354)
---- ------- ---- -------
Net increase/(decrease)................................... 93 $ 903 (94) $ (973)
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 13 $ 121 14 $ 145
Issued as reinvestment of dividends....................... 13 134 13 129
Redeemed.................................................. (71) (693) (49) (503)
---- ------- ---- -------
Net increase/(decrease)................................... (45) $ (438) (22) $ (229)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... 8 $ 75 2 $ 24
Issued as reinvestment of dividends....................... --* 4 --* 1
Redeemed.................................................. -- --* --* --*
---- ------- ---- -------
Net increase/(decrease)................................... 8 $ 79 2 $ 25
==== ======= ==== =======
Total net increase/(decrease)............................. 25 $ 254 (1) $ (8)
==== ======= ==== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
239
<PAGE> 244
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 4,248 $ 43,022 5,191 $ 54,659
Issued as reinvestment of dividends....................... 3 19 15 160
Redeemed.................................................. (8,955) (90,193) (4,612) (48,526)
------ -------- ------ --------
Net increase/(decrease)................................... (4,704) $(47,152) 594 $ 6,293
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 156 $ 1,583 1,057 $ 11,128
Issued as reinvestment of dividends....................... 8 82 9 94
Redeemed.................................................. (215) (2,175) (661) (6,956)
------ -------- ------ --------
Net increase/(decrease)................................... (51) $ (510) 405 $ 4,266
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 5 $ 52 10 $ 104
Issued as reinvestment of dividends....................... 5 60 5 58
Redeemed.................................................. (14) (142) (20) (206)
------ -------- ------ --------
Net increase/(decrease)................................... (4) $ (30) (5) $ (44)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* --* 1 6
Redeemed.................................................. --* --* (29) (297)
------ -------- ------ --------
Net increase/(decrease)................................... -- $ -- (28) $ (291)
====== ======== ====== ========
Total net increase/(decrease)............................. (4,759) $(47,692) 966 $ 10,224
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
240
<PAGE> 245
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 157 $ 1,477 280 $ 2,823
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (263) (2,523) (109) (1,100)
---- ------- ---- -------
Net increase/(decrease)................................... (106) $(1,046) 171 $ 1,723
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 9 $ 84 58 $ 588
Issued as reinvestment of dividends....................... --* 4 1 7
Redeemed.................................................. (14) (135) (61) (617)
---- ------- ---- -------
Net increase/(decrease)................................... (5) $ (47) (2) $ (22)
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 7 $ 60 8 $ 93
Issued as reinvestment of dividends....................... 15 152 17 168
Redeemed.................................................. (115) (1,094) (227) (2,298)
---- ------- ---- -------
Net increase/(decrease)................................... (93) $ (882) (202) $(2,037)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ 1 --* $ --*
Issued as reinvestment of dividends....................... --* 3 --* 3
Redeemed.................................................. -- --* --* --*
---- ------- ---- -------
Net increase/(decrease)................................... -- $ 4 --* $ 3
==== ======= ==== =======
Total net increase/(decrease)............................. (204) $(1,971) (33) $ (333)
==== ======= ==== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
241
<PAGE> 246
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA INTERMEDIATE MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 6,760 $ 71,512 7,658 $ 84,298
Issued in exchange for assets of NationsBank Common Trust
Virginia Municipal Bond Fund (Note 8)................... -- -- 437 4,781
Issued as reinvestment of dividends....................... 7 78 6 65
Redeemed.................................................. (5,701) (60,355) (3,052) (33,592)
------ -------- ------ --------
Net increase/(decrease)................................... 1,066 $ 11,235 5,049 $ 55,552
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 96 $ 905 883 $ 9,763
Issued as reinvestment of dividends....................... 123 1,420 132 1,452
Redeemed.................................................. (945) (10,105) (799) (8,799)
------ -------- ------ --------
Net increase/(decrease)................................... (726) $ (7,780) 216 $ 2,416
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 81 $ 838 115 $ 1,275
Issued as reinvestment of dividends....................... 22 256 22 246
Redeemed.................................................. (177) (1,882) (82) (910)
------ -------- ------ --------
Net increase/(decrease)................................... (74) $ (788) 55 $ 611
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 19 $ 191 48 $ 531
Issued as reinvestment of dividends....................... 2 28 3 33
Redeemed.................................................. (49) (518) (130) (1,419)
------ -------- ------ --------
Net increase/(decrease)................................... (28) $ (299) (79) $ (855)
====== ======== ====== ========
Total net increase/(decrease)............................. 238 $ 2,368 5,241 $ 57,724
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
242
<PAGE> 247
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
----------------- -----------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,000 $ 9,458 431 $ 4,431
Issued as reinvestment of dividends....................... --* 2 1 13
Redeemed.................................................. (568) (5,336) (240) (2,532)
----- ------- ---- -------
Net increase/(decrease)................................... 432 $ 4,124 192 $ 1,912
===== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 48 $ 460 48 $ 476
Issued as reinvestment of dividends....................... 2 15 3 33
Redeemed.................................................. (84) (802) (77) (777)
----- ------- ---- -------
Net increase/(decrease)................................... (34) $ (327) (26) $ (268)
===== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 50 $ 479 120 $ 1,210
Issued as reinvestment of dividends....................... 31 296 31 314
Redeemed.................................................. (310) (2,936) (114) (1,157)
----- ------- ---- -------
Net increase/(decrease)................................... (229) $(2,161) 37 $ 367
===== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. -- -- --* --*
----- ------- ---- -------
Net increase/(decrease)................................... -- $ -- --* $ --*
===== ======= ==== =======
Total net increase/(decrease)............................. 169 $ 1,636 203 $ 2,011
===== ======= ==== =======
</TABLE>
---------------
* Amount represents less than $500 or 500 shares, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
243
<PAGE> 248
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL INCOME
PRIMARY A SHARES
Year ended 3/31/2000(c)............................ $10.10 $0.41 $(0.16) $0.25 $(0.41)
Year ended 3/31/1999(c)............................ 10.05 0.41 0.05 0.46 (0.41)
Year ended 3/31/1998............................... 9.95 0.42 0.10 0.52 (0.42)
Year ended 3/31/1997............................... 9.98 0.44 (0.03) 0.41 (0.44)
Period ended 3/31/1996(b).......................... 10.03 0.15 (0.05) 0.10 (0.15)
Year ended 11/30/1995.............................. 9.69 0.44 0.34 0.78 (0.44)
INVESTOR A SHARES
Year ended 3/31/2000(c)............................ $10.10 $0.39 $(0.16) $0.23 $(0.39)
Year ended 3/31/1999(c)............................ 10.05 0.39 0.05 0.44 (0.39)
Year ended 3/31/1998............................... 9.95 0.40 0.10 0.50 (0.40)
Year ended 3/31/1997............................... 9.98 0.42 (0.03) 0.39 (0.42)
Period ended 3/31/1996(b).......................... 10.03 0.14 (0.05) 0.09 (0.14)
Year ended 11/30/1995.............................. 9.69 0.42 0.34 0.76 (0.42)
INVESTOR B SHARES
Year ended 3/31/2000(c)............................ $10.10 $0.36 $(0.16) $0.20 $(0.36)
Year ended 3/31/1999(c)............................ 10.05 0.38 0.05 0.43 (0.38)
Year ended 3/31/1998............................... 9.95 0.39 0.10 0.49 (0.39)
Year ended 3/31/1997............................... 9.98 0.40 (0.03) 0.37 (0.40)
Period ended 3/31/1996(b).......................... 10.03 0.13 (0.05) 0.08 (0.13)
Year ended 11/30/1995.............................. 9.69 0.40 0.34 0.74 (0.40)
INVESTOR C SHARES
Year ended 3/31/2000(c)............................ $10.10 $0.32 $(0.16) $0.16 $(0.32)
Year ended 3/31/1999(c)............................ 10.05 0.40 0.02 0.42 (0.37)
Year ended 3/31/1998............................... 9.95 0.39 0.10 0.49 (0.39)
Year ended 3/31/1997............................... 9.98 0.40 (0.03) 0.37 (0.40)
Period ended 3/31/1996(b).......................... 10.03 0.14 (0.05) 0.09 (0.14)
Year ended 11/30/1995.............................. 9.69 0.42 0.34 0.76 (0.42)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
244
<PAGE> 249
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME 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>
$(0.41) $ 9.94 2.58% $94,393 0.40%(a) 4.16% 90% 0.77%
(0.41) 10.10 4.71 79,002 0.40(a) 4.11 53 0.80
(0.42) 10.05 5.33 70,740 0.40(a) 4.17 94 0.77
(0.44) 9.95 4.15 61,072 0.40(a) 4.36 80 0.84
(0.15) 9.98 0.96 48,511 0.40+(a) 4.37+ 16 0.86+
(0.44) 10.03 8.16 49,961 0.45(a) 4.38 82 0.93
$(0.39) $ 9.94 2.35% $22,415 0.63%(a) 3.93% 90% 1.02%
(0.39) 10.10 4.50 35,805 0.60(a) 3.91 53 1.05
(0.40) 10.05 5.12 23,580 0.60(a) 3.97 94 0.97
(0.42) 9.95 3.96 8,417 0.60(a) 4.16 80 1.04
(0.14) 9.98 0.90 4,599 0.60+(a) 4.17+ 16 1.06+
(0.42) 10.03 7.95 3,741 0.65(a) 4.18 82 1.13
$(0.36) $ 9.94 1.99% $ 7,030 0.94%(a) 3.62% 90% 1.77%
(0.38) 10.10 4.34 13,931 0.75(a) 3.76 53 1.80
(0.39) 10.05 4.96 13,753 0.75(a) 3.82 94 1.12
(0.40) 9.95 3.78 10,655 0.75(a) 4.01 80 1.19
(0.13) 9.98 0.84 13,859 0.75+(a) 4.02+ 16 1.21+
(0.40) 10.03 7.78 9,803 0.80(a) 4.03 82 1.28
$(0.32) $ 9.94 1.57% $ 1,616 1.40%(a) 3.16% 90% 1.77%
(0.37) 10.10 4.29 2,583 0.83(a) 3.68 53 1.80
(0.39) 10.05 4.99 1,388 0.75(a) 3.82 94 1.12
(0.40) 9.95 3.79 1,080 0.75(a) 4.01 80 1.19
(0.14) 9.98 0.85 2,072 0.72+(a) 4.05+ 16 1.18+
(0.42) 10.03 7.95 1,953 0.70(a) 4.13 82 1.18
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
245
<PAGE> 250
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)........... $10.30 $0.47 $(0.50) $(0.03) $(0.47) $(0.02)
Year ended 3/31/1999.............. 10.30 0.47 0.07 0.54 (0.47) (0.07)
Year ended 3/31/1998.............. 10.01 0.48 0.33 0.81 (0.48) (0.04)
Year ended 3/31/1997.............. 10.03 0.48 (0.02) 0.46 (0.48) --
Period ended 3/31/1996(b)......... 10.17 0.16 (0.14) 0.02 (0.16) --
Year ended 11/30/1995............. 9.24 0.48 0.93 1.41 (0.48) --
INVESTOR A SHARES
Year ended 3/31/2000(c)........... $10.30 $0.45 $(0.50) $(0.05) $(0.45) $(0.02)
Year ended 3/31/1999.............. 10.30 0.45 0.07 0.52 (0.45) (0.07)
Year ended 3/31/1998.............. 10.01 0.46 0.33 0.79 (0.46) (0.04)
Year ended 3/31/1997.............. 10.03 0.46 (0.02) 0.44 (0.46) --
Period ended 3/31/1996(b)......... 10.17 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............. 9.24 0.47 0.93 1.40 (0.47) --
INVESTOR B SHARES
Year ended 3/31/2000(c)........... $10.30 $0.38 $(0.50) $(0.12) $(0.38) $(0.02)
Year ended 3/31/1999.............. 10.30 0.39 0.07 0.46 (0.39) (0.07)
Year ended 3/31/1998.............. 10.01 0.41 0.33 0.74 (0.41) (0.04)
Year ended 3/31/1997.............. 10.03 0.43 (0.02) 0.41 (0.43) --
Period ended 3/31/1996(b)......... 10.17 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995............. 9.24 0.43 0.93 1.36 (0.43) --
INVESTOR C SHARES
Year ended 3/31/2000(c)........... $10.30 $0.38 $(0.50) $(0.12) $(0.38) $(0.02)
Year ended 3/31/1999.............. 10.30 0.40 0.09 0.49 (0.42) (0.07)
Year ended 3/31/1998.............. 10.01 0.42 0.33 0.75 (0.42) (0.04)
Year ended 3/31/1997.............. 10.03 0.43 (0.02) 0.41 (0.43) --
Period ended 3/31/1996(b)......... 10.17 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995............. 9.24 0.43 0.93 1.36 (0.43) --
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
246
<PAGE> 251
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 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>
$(0.49) $ 9.78 (0.27)% $849,966 0.50%(a) 4.75% 30% 0.70%
(0.54) 10.30 5.33 918,367 0.50(a) 4.55 40 0.68
(0.52) 10.30 8.20 867,154 0.50(a) 4.65 47 0.74
(0.48) 10.01 4.63 108,204 0.50(a) 4.74 21 0.81
(0.16) 10.03 0.20 77,423 0.50+(a) 4.75+ 4 0.83+
(0.48) 10.17 15.60 73,897 0.45(a) 4.91 31 0.84
$(0.47) $ 9.78 (0.49)% $ 19,782 0.73%(a) 4.52% 30% 0.95%
(0.52) 10.30 5.12 16,149 0.70(a) 4.35 40 0.93
(0.50) 10.30 7.99 6,487 0.70(a) 4.45 47 0.94
(0.46) 10.01 4.42 2,067 0.70(a) 4.54 21 1.01
(0.15) 10.03 0.13 1,500 0.70+(a) 4.55+ 4 1.03+
(0.47) 10.17 15.38 1,249 0.65(a) 4.71 31 1.04
$(0.40) $ 9.78 (1.18)% $ 2,733 1.42%(a) 3.83% 30% 1.70%
(0.46) 10.30 4.49 2,556 1.30(a) 3.75 40 1.68
(0.45) 10.30 7.50 2,023 1.20(a) 3.95 47 1.44
(0.43) 10.01 4.12 1,481 1.00(a) 4.24 21 1.31
(0.14) 10.03 0.03 1,623 1.00+(a) 4.25+ 4 1.33+
(0.43) 10.17 15.02 1,352 0.95(a) 4.41 31 1.34
$(0.40) $ 9.78 (1.19)% $ 539 1.50%(a) 3.75% 30% 1.70%
(0.49) 10.30 4.80 1,511 1.21(a) 3.84 40 1.68
(0.46) 10.30 7.62 1,590 1.20(a) 3.95 47 1.44
(0.43) 10.01 4.11 756 1.00(a) 4.24 21 1.31
(0.14) 10.03 0.03 716 1.00+(a) 4.25+ 4 1.33+
(0.43) 10.17 14.96 359 0.95(a) 4.41 31 1.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
247
<PAGE> 252
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MUNICIPAL INCOME
PRIMARY A SHARES
Year ended 3/31/2000(c)........... $11.48 $0.54 $(0.78) $(0.24) $(0.54) $(0.01)
Year ended 3/31/1999.............. 11.46 0.54 0.07 0.61 (0.54) (0.05)
Year ended 3/31/1998.............. 10.89 0.57 0.62 1.19 (0.57) (0.05)
Year ended 3/31/1997.............. 10.84 0.59 0.05 0.64 (0.59) --
Period ended 3/31/1996(b)......... 11.08 0.20 (0.24) (0.04) (0.20) --
Year ended 11/30/1995............. 9.64 0.59 1.44 2.03 (0.59) --
INVESTOR A SHARES
Year ended 3/31/2000(c)........... $11.48 $0.52 $(0.79) $(0.27) $(0.52) $(0.01)
Year ended 3/31/1999.............. 11.46 0.52 0.07 0.59 (0.52) (0.05)
Year ended 3/31/1998.............. 10.89 0.54 0.62 1.16 (0.54) (0.05)
Year ended 3/31/1997.............. 10.84 0.57 0.05 0.62 (0.57) --
Period ended 3/31/1996(b)......... 11.08 0.19 (0.24) (0.05) (0.19) --
Year ended 11/30/1995............. 9.64 0.57 1.44 2.01 (0.57) --
INVESTOR B SHARES
Year ended 3/31/2000(c)........... $11.48 $0.44 $(0.78) $(0.34) $(0.44) $(0.01)
Year ended 3/31/1999.............. 11.46 0.44 0.08 0.52 (0.45) (0.05)
Year ended 3/31/1998.............. 10.89 0.48 0.62 1.10 (0.48) (0.05)
Year ended 3/31/1997.............. 10.84 0.51 0.05 0.56 (0.51) --
Period ended 3/31/1996(b)......... 11.08 0.17 (0.24) (0.07) (0.17) --
Year ended 11/30/1995............. 9.64 0.51 1.44 1.95 (0.51) --
INVESTOR C SHARES
Year ended 3/31/2000(c)........... $11.48 $0.44 $(0.78) $(0.34) $(0.44) $(0.01)
Year ended 3/31/1999.............. 11.46 0.46 0.07 0.53 (0.46) (0.05)
Year ended 3/31/1998.............. 10.89 0.49 0.62 1.11 (0.49) (0.05)
Year ended 3/31/1997.............. 10.84 0.53 0.05 0.58 (0.53) --
Period ended 3/31/1996(b)......... 11.08 0.18 (0.24) (0.06) (0.18) --
Year ended 11/30/1995............. 9.64 0.51 1.44 1.95 (0.51) --
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
248
<PAGE> 253
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
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 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>
$(0.55) $10.69 (2.08)% $552,650 0.60%(a) 4.99% 36% 0.82%
(0.59) 11.48 5.42 635,629 0.60(a) 4.71 11 0.80
(0.62) 11.46 11.12 456,485 0.60(a) 4.97 38 0.84
(0.59) 10.89 6.03 77,260 0.60(a) 5.41 25 0.91
(0.20) 10.84 (0.41) 68,022 0.60+(a) 5.35+ 4 0.91+
(0.59) 11.08 21.55 68,836 0.60(a) 5.63 49 0.88
$(0.53) $10.68 (2.28)% $ 35,937 0.83%(a) 4.76% 36% 1.07%
(0.57) 11.48 5.21 28,625 0.80(a) 4.51 11 1.05
(0.59) 11.46 10.89 19,226 0.80(a) 4.77 38 1.04
(0.57) 10.89 5.82 15,075 0.80(a) 5.21 25 1.11
(0.19) 10.84 (0.47) 26,085 0.80+(a) 5.15+ 4 1.11+
(0.57) 11.08 21.31 27,963 0.80(a) 5.43 49 1.08
$(0.45) $10.69 (2.99)% $ 8,795 1.53%(a) 4.06% 36% 1.82%
(0.50) 11.48 4.53 13,810 1.45(a) 3.86 11 1.80
(0.53) 11.46 10.23 15,383 1.42(a) 4.15 38 1.66
(0.51) 10.89 5.24 14,615 1.35(a) 4.66 25 1.66
(0.17) 10.84 (0.66) 16,870 1.35+(a) 4.60+ 4 1.66+
(0.51) 11.08 20.65 18,165 1.35(a) 4.88 49 1.63
$(0.45) $10.69 (3.03)% $ 1,418 1.60%(a) 3.99% 36% 1.82%
(0.51) 11.48 4.64 2,150 1.36(a) 3.95 11 1.80
(0.54) 11.46 10.37 2,444 1.33(a) 4.24 38 1.57
(0.53) 10.89 5.50 1,713 1.10(a) 4.91 25 1.41
(0.18) 10.84 (0.60) 2,173 1.16+(a) 4.79+ 4 1.47+
(0.51) 11.08 20.65 2,268 1.35(a) 4.88 49 1.63
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
249
<PAGE> 254
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BOND
PRIMARY A SHARES
Period ended 3/31/2000***......... $7.51 $0.30 $(0.36) $(0.06) $(0.30) $(0.02)
INVESTOR A SHARES*
Period ended 3/31/2000............ $7.50 $0.31 $(0.34) $(0.03) $(0.31) $(0.02)
Period ended 5/14/1999............ 7.60 0.07 (0.10) (0.03) (0.07) --
Year ended 2/28/1999.............. 7.64 0.34 0.10 0.44 (0.34) (0.14)
Year ended 2/28/1998.............. 7.35 0.35 0.29 0.64 (0.35) --
Year ended 2/28/1997**............ 7.45 0.36 (0.05) 0.31 (0.36) (0.05)
Year ended 2/29/1996.............. 7.12 0.37 0.33 0.70 (0.37) --
INVESTOR B SHARES*
Period ended 3/31/2000............ $7.51 $0.27 $(0.35) $(0.08) $(0.27) $(0.02)
Period ended 5/14/1999............ 7.61 0.06 (0.10) (0.04) (0.06) --
Period ended 2/28/1999***......... 7.61 0.16 0.14 0.30 (0.16) (0.14)
INVESTOR C SHARES
Period ended 3/31/2000***......... $7.31 $0.19 $(0.17) $ 0.02 $(0.19) $(0.02)
</TABLE>
---------------
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon California
Municipal Bond Fund A and B Shares, which were reorganized into the
California Municipal Bond Investor A and Investor B 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.
*** California Municipal Bond Primary A, Investor B and Investor C Shares
commenced operations on May 21, 1999, July 15, 1998 and July 29, 1999,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) 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.
250
<PAGE> 255
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 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>
$(0.32) $7.13 (0.66)% $ 21,654 0.60%+(b) 4.70%+ 34% 0.79%+
$(0.33) $7.14 (0.46)% $157,672 0.80%+(b) 4.50%+ 34% 1.04%+
(0.07) 7.50 (0.42) 206,000 0.93+ 4.40+ 1 0.96+
(0.48) 7.60 5.94 219,000 0.93 4.42 42 0.93
(0.35) 7.64 9.18 214,000 0.90 4.74 28 1.06(a)
(0.41) 7.35 4.29 221,000 0.90 4.88 34 1.10(a)
(0.37) 7.45 10.12 221,000 0.94 5.11 57 1.14(a)
$(0.29) $7.14 (1.16)% $ 4,206 1.45%+(b) 3.85%+ 34% 1.79%+
(0.06) 7.51 (0.57) 3,000 1.66+ 3.63+ 1 1.69+
(0.30) 7.61 4.09 2,000 1.70+ 3.67+ 42 1.71+(a)
$(0.21) $7.12 0.30% $ 258 1.60%+(b) 3.70%+ 34% 1.79%+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
251
<PAGE> 256
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FLORIDA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)............................ $10.79 $0.50 $(0.45) $ 0.05 $(0.50)
Year ended 3/31/1999............................... 10.77 0.50 0.02 0.52 (0.50)
Year ended 3/31/1998............................... 10.40 0.50 0.37 0.87 (0.50)
Year ended 3/31/1997............................... 10.46 0.49 (0.06) 0.43 (0.49)
Period ended 3/31/1996(b).......................... 10.63 0.17 (0.17) 0.00 (0.17)
Year ended 11/30/1995.............................. 9.61 0.48 1.02 1.50 (0.48)
INVESTOR A SHARES
Year ended 3/31/2000(c)............................ $10.79 $0.48 $(0.46) $ 0.02 $(0.48)
Year ended 3/31/1999............................... 10.77 0.48 0.02 0.50 (0.48)
Year ended 3/31/1998............................... 10.40 0.48 0.37 0.85 (0.48)
Year ended 3/31/1997............................... 10.46 0.47 (0.06) 0.41 (0.47)
Period ended 3/31/1996(b).......................... 10.63 0.16 (0.17) (0.01) (0.16)
Year ended 11/30/1995.............................. 9.61 0.46 1.02 1.48 (0.46)
INVESTOR B SHARES
Year ended 3/31/2000(c)............................ $10.79 $0.41 $(0.45) $(0.04) $(0.41)
Year ended 3/31/1999............................... 10.77 0.42 0.02 0.44 (0.42)
Year ended 3/31/1998............................... 10.40 0.43 0.37 0.80 (0.43)
Year ended 3/31/1997............................... 10.46 0.44 (0.06) 0.38 (0.44)
Period ended 3/31/1996(b).......................... 10.63 0.15 (0.17) (0.02) (0.15)
Year ended 11/30/1995.............................. 9.61 0.43 1.02 1.45 (0.43)
INVESTOR C SHARES
Year ended 3/31/2000(c)............................ $10.79 $0.40 $(0.43) $(0.03) $(0.40)
Year ended 3/31/1999............................... 10.77 0.41 0.03 0.44 (0.42)
Year ended 3/31/1998(c)............................ 10.40 0.43 0.37 0.80 (0.43)
Year ended 3/31/1997............................... 10.46 0.44 (0.06) 0.38 (0.44)
Period ended 3/31/1996(b).......................... 10.63 0.15 (0.17) (0.02) (0.15)
Year ended 11/30/1995.............................. 9.61 0.43 1.02 1.45 (0.43)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
252
<PAGE> 257
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME 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>
$(0.50) $10.34 0.54% $207,704 0.50%(a) 4.80% 12% 0.74%
(0.50) 10.79 4.95 234,530 0.50 4.65 14 0.72
(0.50) 10.77 8.55 203,710 0.50(a) 4.74 13 0.76
(0.49) 10.40 4.22 51,748 0.50(a) 4.72 16 0.81
(0.17) 10.46 (0.06) 44,988 0.50+(a) 4.66+ 18 0.86+
(0.48) 10.63 15.92 44,038 0.55(a) 4.70 27 0.81
$(0.48) $10.33 0.22% $ 9,695 0.73%(a) 4.57% 12% 0.99%
(0.48) 10.79 4.74 12,783 0.70 4.45 14 0.97
(0.48) 10.77 8.34 7,205 0.70(a) 4.54 13 0.96
(0.47) 10.40 4.01 2,142 0.70(a) 4.52 16 1.01
(0.16) 10.46 (0.13) 2,029 0.70+(a) 4.46+ 18 1.06+
(0.46) 10.63 15.68 2,292 0.75(a) 4.50 27 1.01
$(0.41) $10.34 (0.38)% $ 4,639 1.41%(a) 3.89% 12% 1.74%
(0.42) 10.79 4.11 5,090 1.30 3.85 14 1.72
(0.43) 10.77 7.80 3,606 1.20(a) 4.04 13 1.46
(0.44) 10.40 3.70 3,488 1.00(a) 4.22 16 1.31
(0.15) 10.46 (0.23) 4,001 1.00+(a) 4.16+ 18 1.36+
(0.43) 10.63 15.34 4,775 1.05(a) 4.20 27 1.31
$(0.40) $10.36 (0.26)% $ 117 1.50%(a) 3.80% 12% 1.74%
(0.42) 10.79 4.10 1,416 1.36 3.79 14 1.72
(0.43) 10.77 7.80 188 1.20(a) 4.04 13 1.46
(0.44) 10.40 3.71 272 1.00(a) 4.22 16 1.31
(0.15) 10.46 (0.23) 275 1.00+(a) 4.16+ 18 1.36+
(0.43) 10.63 15.34 277 1.05(a) 4.20 27 1.31
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
253
<PAGE> 258
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FLORIDA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000............................... $9.99 $0.48 $(0.46) $ 0.02 $(0.48)
Year ended 3/31/1999............................... 9.99 0.48 0.00 0.48 (0.48)
Year ended 3/31/1998............................... 9.48 0.48 0.51 0.99 (0.48)
Year ended 3/31/1997............................... 9.47 0.48 0.01 0.49 (0.48)
Period ended 3/31/1996(b).......................... 9.76 0.16 (0.29) (0.13) (0.16)
Year ended 11/30/1995.............................. 8.40 0.51 1.36 1.87 (0.51)
INVESTOR A SHARES
Year ended 3/31/2000............................... $9.99 $0.46 $(0.46) -- $(0.46)
Year ended 3/31/1999............................... 9.99 0.46 0.00 0.46 (0.46)
Year ended 3/31/1998............................... 9.48 0.46 0.51 0.97 (0.46)
Year ended 3/31/1997............................... 9.47 0.46 0.01 0.47 (0.46)
Period ended 3/31/1996(b).......................... 9.76 0.15 (0.29) (0.14) (0.15)
Year ended 11/30/1995.............................. 8.40 0.49 1.36 1.85 (0.49)
INVESTOR B SHARES
Year ended 3/31/2000............................... $9.99 $0.39 $(0.46) $(0.07) $(0.39)
Year ended 3/31/1999............................... 9.99 0.40 0.00 0.40 (0.40)
Year ended 3/31/1998............................... 9.48 0.40 0.51 0.91 (0.40)
Year ended 3/31/1997............................... 9.47 0.41 0.01 0.42 (0.41)
Period ended 3/31/1996(b).......................... 9.76 0.14 (0.29) (0.15) (0.14)
Year ended 11/30/1995.............................. 8.40 0.44 1.36 1.80 (0.44)
INVESTOR C SHARES
Year ended 3/31/2000............................... $9.99 $0.38 $(0.46) $(0.08) $(0.38)
Year ended 3/31/1999(c)............................ 9.99 0.37 0.03 0.40 (0.40)
Year ended 3/31/1998(c)............................ 9.48 0.41 0.51 0.92 (0.41)
Year ended 3/31/1997............................... 9.47 0.44 0.01 0.45 (0.44)
Period ended 3/31/1996(b).......................... 9.76 0.14 (0.29) (0.15) (0.14)
Year ended 11/30/1995.............................. 8.40 0.44 1.36 1.80 (0.44)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
254
<PAGE> 259
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$9.53 0.26% $79,335 0.60%(a) 4.98% 18% 0.86%
9.99 4.90 77,197 0.60(a) 4.80 16 0.85
9.99 10.60 27,378 0.60(a) 4.85 19 0.90
9.48 5.29 16,702 0.60(a) 5.07 23 0.93
9.47 (1.33) 13,044 0.60+(a) 5.03+ 7 0.96+
9.76 22.69 11,219 0.39(a) 5.44 13 0.95
$9.53 0.04% $49,439 0.83%(a) 4.75% 18% 1.11%
9.99 4.69 65,373 0.80(a) 4.60 16 1.10
9.99 10.38 2,027 0.80(a) 4.65 19 1.10
9.48 5.09 1,781 0.80(a) 4.87 23 1.13
9.47 (1.40) 1,836 0.80+(a) 4.83+ 7 1.16+
9.76 22.45 1,787 0.59 5.24 13 1.15
$9.53 (0.67)% $12,802 1.53%(a) 4.05% 18% 1.86%
9.99 4.01 15,435 1.45(a) 3.95 16 1.85
9.99 9.71 17,048 1.42(a) 4.03 19 1.72
9.48 4.52 19,751 1.35(a) 4.32 23 1.68
9.47 (1.58) 23,947 1.35+(a) 4.28+ 7 1.71+
9.76 21.78 25,398 1.14(a) 4.69 13 1.70
$9.53 (0.73)% $ 23 1.60%(a) 3.98% 18% 1.86%
9.99 4.01 23 1.53(a) 3.87 16 1.85
9.99 9.83 3 1.33(a) 4.12 19 1.63
9.48 4.78 40 1.10(a) 4.57 23 1.43
9.47 (1.52) 38 1.15+(a) 4.48+ 7 1.51+
9.76 21.80 38 1.14(a) 4.69 13 1.70
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
255
<PAGE> 260
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GEORGIA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000.............. $10.94 $0.50 $(0.51) $(0.01) $(0.50) $(0.01)
Year ended 3/31/1999.............. 10.92 0.49 0.07 0.56 (0.50) (0.04)
Year ended 3/31/1998.............. 10.58 0.49 0.38 0.87 (0.49) (0.04)
Year ended 3/31/1997.............. 10.63 0.50 (0.05) 0.45 (0.50) --
Period ended 3/31/1996(b)......... 10.81 0.17 (0.18) (0.01) (0.17) --
Year ended 11/30/1995............. 9.82 0.50 0.99 1.49 (0.50) --
INVESTOR A SHARES
Year ended 3/31/2000.............. $10.94 $0.48 $(0.52) $(0.04) $(0.47) $(0.01)
Year ended 3/31/1999.............. 10.92 0.47 0.06 0.53 (0.47) (0.04)
Year ended 3/31/1998.............. 10.58 0.47 0.38 0.85 (0.47) (0.04)
Year ended 3/31/1997.............. 10.63 0.48 (0.05) 0.43 (0.48) --
Period ended 3/31/1996(b)......... 10.81 0.16 (0.18) (0.02) (0.16) --
Year ended 11/30/1995............. 9.82 0.48 0.99 1.47 (0.48) --
INVESTOR B SHARES
Year ended 3/31/2000.............. $10.94 $0.40 $(0.51) $(0.11) $(0.40) $(0.01)
Year ended 3/31/1999.............. 10.92 0.41 0.06 0.47 (0.41) (0.04)
Year ended 3/31/1998.............. 10.58 0.42 0.38 0.80 (0.42) (0.04)
Year ended 3/31/1997.............. 10.63 0.45 (0.05) 0.40 (0.45) --
Period ended 3/31/1996(b)......... 10.81 0.15 (0.18) (0.03) (0.15) --
Year ended 11/30/1995............. 9.82 0.45 0.99 1.44 (0.45) --
INVESTOR C SHARES
Year ended 3/31/2000.............. $10.94 $0.39 $(0.51) $(0.12) $(0.39) $(0.01)
Year ended 3/31/1999.............. 10.92 0.41 0.05 0.46 (0.40) (0.04)
Year ended 3/31/1998(c)........... 10.58 0.42 0.38 0.80 (0.42) (0.04)
Year ended 3/31/1997.............. 10.63 0.45 (0.05) 0.40 (0.45) --
Period ended 3/31/1996(b)......... 10.81 0.15 (0.18) (0.03) (0.15) --
Year ended 11/30/1995............. 9.82 0.45 0.99 1.44 (0.45) --
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
256
<PAGE> 261
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
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 TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE TURNOVER AVERAGE NET
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.51) $10.42 (0.02)% $121,948 0.50%(a) 4.69% 28% 0.78%
(0.54) 10.94 5.20 132,016 0.50 4.51 14 0.73
(0.53) 10.92 8.45 125,654 0.50 4.54 25 0.75
(0.50) 10.58 4.33 43,470 0.50 4.72 9 0.80
(0.17) 10.63 (0.13) 38,222 0.50+ 4.67+ 3 0.83+
(0.50) 10.81 15.42 40,383 0.55 4.76 17 0.80
$(0.48) $10.42 (0.27)% $ 13,244 0.73%(a) 4.46% 28% 1.03%
(0.51) 10.94 4.99 19,674 0.70 4.31 14 0.98
(0.51) 10.92 8.24 9,446 0.70 4.34 25 0.95
(0.48) 10.58 4.12 8,810 0.70 4.52 9 1.00
(0.16) 10.63 (0.19) 8,625 0.70+ 4.47+ 3 1.03+
(0.48) 10.81 15.20 9,175 0.75 4.56 17 1.00
$(0.41) $10.42 (0.96)% $ 6,812 1.41%(a) 3.78% 28% 1.78%
(0.45) 10.94 4.37 8,310 1.30 3.71 14 1.73
(0.46) 10.92 7.70 7,378 1.20 3.84 25 1.45
(0.45) 10.58 3.81 7,601 1.00 4.22 9 1.30
(0.15) 10.63 (0.29) 8,098 1.00+ 4.17+ 3 1.33+
(0.45) 10.81 14.85 8,160 1.05 4.26 17 1.30
$(0.40) $10.42 (1.13)% $ 764 1.50%(a) 3.69% 28% 1.78%
(0.44) 10.94 4.35 886 1.31 3.70 14 1.73
(0.46) 10.92 7.70 1,034 1.20 3.84 25 1.45
(0.45) 10.58 3.81 1,983 1.00 4.22 9 1.30
(0.15) 10.63 (0.29) 2,445 1.00+ 4.17+ 3 1.33+
(0.45) 10.81 14.85 2,606 1.05 4.26 17 1.30
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
257
<PAGE> 262
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GEORGIA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000............................... $10.12 $0.46 $(0.59) $(0.13) $(0.46)
Year ended 3/31/1999............................... 10.00 0.46 0.12 0.58 (0.46)
Year ended 3/31/1998............................... 9.50 0.47 0.50 0.97 (0.47)
Year ended 3/31/1997............................... 9.48 0.47 0.02 0.49 (0.47)
Period ended 3/31/1996(b).......................... 9.72 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995.............................. 8.38 0.51 1.34 1.85 (0.51)
INVESTOR A SHARES
Year ended 3/31/2000............................... $10.12 $0.43 $(0.59) $(0.16) $(0.43)
Year ended 3/31/1999............................... 10.00 0.44 0.12 0.56 (0.44)
Year ended 3/31/1998............................... 9.50 0.45 0.50 0.95 (0.45)
Year ended 3/31/1997............................... 9.48 0.45 0.02 0.47 (0.45)
Period ended 3/31/1996(b).......................... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995.............................. 8.38 0.49 1.34 1.83 (0.49)
INVESTOR B SHARES
Year ended 3/31/2000............................... $10.12 $0.37 $(0.59) $(0.22) $(0.37)
Year ended 3/31/1999............................... 10.00 0.37 0.12 0.49 (0.37)
Year ended 3/31/1998............................... 9.50 0.39 0.50 0.89 (0.39)
Year ended 3/31/1997............................... 9.48 0.40 0.02 0.42 (0.40)
Period ended 3/31/1996(b).......................... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995.............................. 8.38 0.44 1.34 1.78 (0.44)
INVESTOR C SHARES
Year ended 3/31/2000............................... $10.12 $0.36 $(0.59) $(0.23) $(0.36)
Year ended 3/31/1999............................... 10.00 0.37 0.12 0.49 (0.37)
Year ended 3/31/1998 (c)........................... 9.50 0.40 0.50 0.90 (0.40)
Year ended 3/31/1997............................... 9.48 0.42 0.02 0.44 (0.42)
Period ended 3/31/1996(b).......................... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995.............................. 8.38 0.44 1.34 1.78 (0.44)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
258
<PAGE> 263
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.53 (1.27)% $13,064 0.60% 4.74% 50% 1.38%
10.12 5.89 9,719 0.60 4.53 17 1.18
10.00 10.43 8,138 0.60(a) 4.82 30 1.02
9.50 5.29 5,550 0.60(a) 4.96 19 1.05
9.48 (0.84) 2,068 0.60+(a) 4.96+ 7 1.14+
9.72 22.48 2,628 0.40(a) 5.42 26 1.09
$ 9.53 (1.50)% $ 1,853 0.83% 4.51% 50% 1.63%
10.12 5.68 2,611 0.80 4.33 17 1.43
10.00 10.22 483 0.80(a) 4.62 30 1.22
9.50 5.05 208 0.80(a) 4.76 19 1.25
9.48 (1.08) 7 0.80+(a) 4.76+ 7 1.34+
9.72 22.25 7 0.60(a) 5.22 26 1.29
$ 9.53 (2.19)% $10,285 1.54% 3.80% 50% 2.38%
10.12 5.00 11,348 1.45 3.68 17 2.18
10.00 9.54 10,052 1.42(a) 4.00 30 1.84
9.50 4.50 10,182 1.35(a) 4.21 19 1.80
9.48 (1.09) 12,254 1.35+(a) 4.21+ 7 1.89+
9.72 21.58 13,017 1.15(a) 4.67 26 1.84
$ 9.53 (2.29)% $ 60 1.60% 3.74% 50% 2.38%
10.12 4.97 3 1.49 3.64 17 2.18
10.00 9.64 27 1.33(a) 4.09 30 1.75
9.50 4.77 72 1.10(a) 4.46 19 1.55
9.48 (1.03) 69 1.16+(a) 4.40+ 7 1.70+
9.72 21.59 69 1.15(a) 4.67 26 1.84
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
259
<PAGE> 264
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000.............. $11.07 $0.50 $(0.48) $ 0.02 $(0.50) $(0.01)
Year ended 3/31/1999.............. 11.01 0.50 0.06 0.56 (0.50) --
Year ended 3/31/1998.............. 10.70 0.51 0.31 0.82 (0.51) --
Year ended 3/31/1997.............. 10.80 0.51 (0.10) 0.41 (0.51) --
Period ended 3/31/1996(b)......... 10.95 0.17 (0.15) 0.02 (0.17) --
Year ended 11/30/1995............. 10.00 0.51 0.98 1.49 (0.51) (0.03)
INVESTOR A SHARES
Year ended 3/31/2000.............. $11.07 $0.47 $(0.48) $(0.01) $(0.47) $(0.01)
Year ended 3/31/1999.............. 11.01 0.48 0.06 0.54 (0.48) --
Year ended 3/31/1998.............. 10.70 0.49 0.31 0.80 (0.49) --
Year ended 3/31/1997.............. 10.80 0.48 (0.10) 0.38 (0.48) --
Period ended 3/31/1996(b)......... 10.95 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995............. 10.00 0.48 0.98 1.46 (0.48) (0.03)
INVESTOR B SHARES
Year ended 3/31/2000.............. $11.07 $0.40 $(0.48) $(0.08) $(0.40) $(0.01)
Year ended 3/31/1999.............. 11.01 0.41 0.06 0.47 (0.41) --
Year ended 3/31/1998.............. 10.70 0.43 0.31 0.74 (0.43) --
Year ended 3/31/1997.............. 10.80 0.45 (0.10) 0.35 (0.45) --
Period ended 3/31/1996(b)......... 10.95 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995............. 10.00 0.45 0.98 1.43 (0.45) (0.03)
INVESTOR C SHARES
Year ended 3/31/2000.............. $11.07 $0.39 $(0.48) $(0.09) $(0.39) $(0.01)
Year ended 3/31/1999.............. 11.01 0.41 0.06 0.47 (0.41) --
Year ended 3/31/1998.............. 10.70 0.43 0.31 0.74 (0.43) --
Year ended 3/31/1997.............. 10.80 0.45 (0.10) 0.35 (0.45) --
Period ended 3/31/1996(b)......... 10.95 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995............. 10.00 0.45 0.98 1.43 (0.45) (0.03)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
260
<PAGE> 265
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 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>
$(0.51) $10.58 0.17% $169,218 0.50% 4.65% 21% 0.76%
(0.50) 11.07 5.17 183,356 0.50 4.51 22 0.74
(0.51) 11.01 7.83 84,715 0.50 4.63 12 0.80
(0.51) 10.70 3.83 63,549 0.50(a) 4.70 10 0.78
(0.17) 10.80 0.16 61,337 0.50+(a) 4.62+ 4 0.81+
(0.54) 10.95 15.16 62,460 0.55(a) 4.76 11 0.80
$(0.48) $10.58 (0.06)% $ 16,454 0.73% 4.42% 21% 1.01%
(0.48) 11.07 4.96 17,166 0.70 4.31 22 0.99
(0.49) 11.01 7.61 15,558 0.70 4.43 12 1.00
(0.48) 10.70 3.62 14,988 0.70(a) 4.50 10 0.98
(0.16) 10.80 0.09 19,456 0.70+(a) 4.42+ 4 1.01+
(0.51) 10.95 14.94 21,208 0.75(a) 4.56 11 1.00
$(0.41) $10.58 (0.74)% $ 5,662 1.42% 3.73% 21% 1.76%
(0.41) 11.07 4.33 5,989 1.30 3.71 22 1.74
(0.43) 11.01 7.07 4,804 1.20 3.93 12 1.50
(0.45) 10.70 3.31 4,299 1.00(a) 4.20 10 1.28
(0.15) 10.80 (0.01) 4,500 1.00+(a) 4.12+ 4 1.31+
(0.48) 10.95 14.59 4,485 1.05(a) 4.26 11 1.30
$(0.40) $10.58 (0.82)% $ 335 1.50% 3.65% 21% 1.76%
(0.41) 11.07 4.31 561 1.32 3.69 22 1.74
(0.43) 11.01 7.07 840 1.20 3.93 12 1.50
(0.45) 10.70 3.31 2,017 1.00(a) 4.20 10 1.28
(0.15) 10.80 (0.01) 2,900 1.00+(a) 4.12+ 4 1.31+
(0.48) 10.95 14.59 2,808 1.05(a) 4.26 11 1.30
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
261
<PAGE> 266
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)........... $9.99 $0.42 $(0.45) $(0.03) $(0.42) $(0.01)
Year ended 3/31/1999.............. 9.94 0.43 0.05 0.48 (0.43) (0.00)#
Year ended 3/31/1998.............. 9.41 0.45 0.53 0.98 (0.45) --
Year ended 3/31/1997.............. 9.39 0.46 0.02 0.48 (0.46) --
Period ended 3/31/1996(b)......... 9.63 0.15 (0.24) (0.09) (0.15) --
Year ended 11/30/1995............. 8.37 0.48 1.26 1.74 (0.48) --
INVESTOR A SHARES
Year ended 3/31/2000(c)........... $9.99 $0.40 $(0.45) $(0.05) $(0.40) $(0.01)
Year ended 3/31/1999.............. 9.94 0.41 0.05 0.46 (0.41) (0.00)#
Year ended 3/31/1998.............. 9.41 0.43 0.53 0.96 (0.43) --
Year ended 3/31/1997.............. 9.39 0.44 0.02 0.46 (0.44) --
Period ended 3/31/1996(b)......... 9.63 0.14 (0.24) (0.10) (0.14) --
Year ended 11/30/1995............. 8.37 0.46 1.26 1.72 (0.46) --
INVESTOR B SHARES
Year ended 3/31/2000(c)........... $9.99 $0.33 $(0.45) $(0.12) $(0.33) $(0.01)
Year ended 3/31/1999.............. 9.94 0.35 0.05 0.40 (0.35) (0.00)#
Year ended 3/31/1998.............. 9.41 0.37 0.53 0.90 (0.37) --
Year ended 3/31/1997.............. 9.39 0.39 0.02 0.41 (0.39) --
Period ended 3/31/1996(b)......... 9.63 0.13 (0.24) (0.11) (0.13) --
Year ended 11/30/1995............. 8.37 0.41 1.26 1.67 (0.41) --
INVESTOR C SHARES
Year ended 3/31/2000(c)........... $9.99 $0.33 $(0.45) $(0.12) $(0.33) $(0.01)
Year ended 3/31/1999.............. 9.94 0.34 0.05 0.39 (0.34) (0.00)#
Year ended 3/31/1998.............. 9.41 0.39 0.53 0.92 (0.39) --
Year ended 3/31/1997.............. 9.39 0.42 0.02 0.44 (0.42) --
Period ended 3/31/1996(b)......... 9.63 0.13 (0.24) (0.11) (0.13) --
Year ended 11/30/1995............. 8.37 0.41 1.26 1.67 (0.41) --
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
262
<PAGE> 267
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 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>
$(0.43) $9.53 (0.25)% $17,587 0.60% 4.41% 50% 1.22%
(0.43) 9.99 4.92 17,033 0.60 4.29 22 1.07
(0.45) 9.94 10.62 9,049 0.60 4.61 17 1.07
(0.46) 9.41 5.20 4,596 0.60 4.88 18 1.12
(0.15) 9.39 (0.95) 2,788 0.60+ 4.72+ 7 1.23+
(0.48) 9.63 21.23 2,595 0.40 5.14 11 1.26
$(0.41) $9.53 (0.49)% $ 1,781 0.83% 4.18% 50% 1.47%
(0.41) 9.99 4.71 1,751 0.80 4.09 22 1.32
(0.43) 9.94 10.40 1,902 0.80 4.41 17 1.27
(0.44) 9.41 4.99 1,409 0.80 4.68 18 1.32
(0.14) 9.39 (1.01) 1,086 0.80+ 4.52+ 7 1.43+
(0.46) 9.63 20.99 1,031 0.60 4.94 11 1.46
$(0.34) $9.53 (1.19)% $16,034 1.54% 3.47% 50% 2.22%
(0.35) 9.99 4.03 16,124 1.45 3.44 22 2.07
(0.37) 9.94 9.72 11,071 1.42 3.79 17 1.89
(0.39) 9.41 4.42 8,099 1.35 4.13 18 1.87
(0.13) 9.39 (1.19) 9,662 1.35+ 3.97+ 7 1.98+
(0.41) 9.63 20.33 10,002 1.15 4.39 11 2.01
$(0.34) $9.53 (1.23)% $ 214 1.60% 3.41% 50% 2.22%
(0.34) 9.99 4.01 3 1.47 3.42 22 2.07
(0.39) 9.94 9.88 3 1.33 3.88 17 1.80
(0.42) 9.41 4.73 2 1.10 4.38 18 1.62
(0.13) 9.39 (1.13) 2 1.16+ 4.16+ 7 1.79+
(0.41) 9.63 20.29 2 1.15 4.39 11 2.01
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
263
<PAGE> 268
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000.............. $10.71 $0.48 $(0.48) $(0.00) $(0.48) $(0.02)
Year ended 3/31/1999.............. 10.70 0.49 0.04 0.53 (0.49) (0.03)
Year ended 3/31/1998.............. 10.34 0.49 0.36 0.85 (0.49) --
Year ended 3/31/1997.............. 10.36 0.47 (0.02) 0.45 (0.47) --
Period ended 3/31/1996(b)......... 10.51 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995............. 9.53 0.45 0.99 1.44 (0.45)# (0.01)
INVESTOR A SHARES
Year ended 3/31/2000.............. $10.71 $0.46 $(0.48) $(0.02) $(0.46) $(0.02)
Year ended 3/31/1999.............. 10.70 0.47 0.04 0.51 (0.47) (0.03)
Year ended 3/31/1998.............. 10.34 0.47 (0.36) 0.83 (0.47) --
Year ended 3/31/1997.............. 10.36 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996(b)......... 10.51 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995............. 9.53 0.43 0.99 1.42 (0.43)# (0.01)
INVESTOR B SHARES
Year ended 3/31/2000.............. $10.71 $0.39 $(0.48) $(0.09) $(0.39) $(0.02)
Year ended 3/31/1999.............. 10.70 0.40 0.04 0.44 (0.40) (0.03)
Year ended 3/31/1998.............. 10.34 0.42 0.36 0.78 (0.42) --
Year ended 3/31/1997.............. 10.36 0.42 (0.02) 0.40 (0.42) --
Period ended 3/31/1996(b)......... 10.51 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995............. 9.53 0.40 0.99 1.39 (0.40)# (0.01)
INVESTOR C SHARES
Year ended 3/31/2000.............. $10.71 $0.38 $(0.48) $(0.10) $(0.38) $(0.02)
Year ended 3/31/1999.............. 10.70 0.42 0.02 0.44 (0.40) (0.03)
Year ended 3/31/1998.............. 10.34 0.42 0.36 0.78 (0.42) --
Year ended 3/31/1997.............. 10.36 0.42 (0.02) 0.40 (0.42) --
Period ended 3/31/1996(b)......... 10.51 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995............. 9.53 0.40 0.99 1.39 (0.40)# (0.01)
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount includes distributions in excess of net investment income, which were
less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
264
<PAGE> 269
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 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>
$(0.50) $10.21 0.05% $175,650 0.50%(a) 4.67% 19% 0.76%
(0.52) 10.71 5.03 193,398 0.50 4.57 16 0.71
(0.49) 10.70 8.39 179,729 0.50(a) 4.69 21 0.76
(0.47) 10.34 4.45 25,855 0.50(a) 4.57 26 0.82
(0.16) 10.36 0.05 21,161 0.50+ 4.47+ 3 0.87+
(0.46) 10.51 15.41 20,916 0.57(a) 4.47 57 0.84
$(0.48) $10.21 (0.18)% $ 9,684 0.73%(a) 4.44% 19% 1.01%
(0.50) 10.71 4.82 10,099 0.70 4.37 16 0.96
(0.47) 10.70 8.17 8,572 0.70(a) 4.49 21 0.96
(0.45) 10.34 4.25 5,723 0.70(a) 4.37 26 1.02
(0.15) 10.36 (0.01) 7,672 0.70+ 4.27+ 3 1.07+
(0.44) 10.51 15.18 8,525 0.77(a) 4.27 57 1.04
$(0.41) $10.21 (0.87)% $ 5,212 1.41%(a) 3.76% 19% 1.76%
(0.43) 10.71 4.20 6,671 1.30 3.77 16 1.71
(0.42) 10.70 7.64 6,859 1.20(a) 3.99 21 1.46
(0.42) 10.34 3.94 6,796 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 8,102 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 7,848 1.07(a) 3.97 57 1.34
$(0.40) $10.21 (0.95)% $ 88 1.50%(a) 3.67% 19% 1.76%
(0.43) 10.71 4.18 109 1.31 3.76 16 1.71
(0.42) 10.70 7.64 822 1.20(a) 3.99 21 1.46
(0.42) 10.34 3.94 1,364 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 1,379 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 1,366 1.07(a) 3.97 57 1.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
265
<PAGE> 270
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NORTH CAROLINA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)............................ $10.08 $0.45 $(0.56) $(0.11) $(0.45)
Year ended 3/31/1999............................... 10.01 0.45 0.08 0.53 (0.46)
Year ended 3/31/1998............................... 9.47 0.47 0.54 1.01 (0.47)
Year ended 3/31/1997............................... 9.49 0.47 (0.02) 0.45 (0.47)
Period ended 3/31/1996(b).......................... 9.73 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995.............................. 8.36 0.50 1.37 1.87 (0.50)
INVESTOR A SHARES
Year ended 3/31/2000(c)............................ $10.08 $0.43 $(0.56) $(0.13) $(0.43)
Year ended 3/31/1999............................... 10.01 0.43 0.08 0.51 (0.44)
Year ended 3/31/1998............................... 9.47 0.45 0.54 (0.99) (0.45)
Year ended 3/31/1997............................... 9.49 0.45 (0.02) 0.43 (0.45)
Period ended 3/31/1996(b).......................... 9.73 0.15 (0.24) (0.09) (0.15)
Year ended 11/30/1995.............................. 8.36 0.49 1.37 1.86 (0.49)
INVESTOR B SHARES
Year ended 3/31/2000(c)............................ $10.08 $0.37 $(0.56) $(0.19) $(0.37)
Year ended 3/31/1999............................... 10.01 0.38 0.07 0.45 (0.38)
Year ended 3/31/1998............................... 9.47 0.39 0.54 0.93 (0.39)
Year ended 3/31/1997............................... 9.49 0.40 (0.02) 0.38 (0.40)
Period ended 3/31/1996(b).......................... 9.73 0.13 (0.24) (0.11) (0.13)
Year ended 11/30/1995.............................. 8.36 0.43 1.37 1.80 (0.43)
INVESTOR C SHARES
Year ended 3/31/2000(c)............................ $10.08 $0.37 $(0.57) $(0.20) $(0.37)
Year ended 3/31/1999............................... 10.01 0.37 0.07 0.44 (0.37)
Year ended 3/31/1998(c)............................ 9.47 0.40 0.54 0.94 0.40
Year ended 3/31/1997............................... 9.49 0.42 (0.02) 0.40 (0.42)
Period ended 3/31/1996(b).......................... 9.73 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995.............................. 8.36 0.43 1.37 1.80 (0.43)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
266
<PAGE> 271
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.52 (0.98)% $17,787 0.60%(a) 4.74% 37% 1.13%
10.08 5.39 16,293 0.60(a) 4.57 11 1.00
10.01 10.86 6,452 0.60(a) 4.78 20 0.93
9.47 4.84 3,095 0.60(a) 4.95 28 0.94
9.49 (0.87) 1,593 0.60+ 4.86+ 22 0.99+
9.73 22.87 1,293 0.38(a) 5.43 40 0.96
$ 9.52 (1.20)% $ 1,528 0.83%(a) 4.51% 37% 1.38%
10.08 5.20 1,028 0.80(a) 4.37 11 1.25
10.01 10.64 609 0.80(a) 4.58 20 1.13
9.47 4.62 594 0.80(a) 4.75 28 1.14
9.49 (0.94) 448 0.80+ 4.66+ 22 1.19+
9.73 22.63 347 0.58(a) 5.23 40 1.16
$ 9.52 (1.90)% $20,207 1.54%(a) 3.80% 37% 2.13%
10.08 4.53 24,656 1.45(a) 3.72 11 2.00
10.01 9.96 25,187 1.42(a) 3.96 20 1.75
9.47 4.06 23,863 1.35(a) 4.20 28 1.69
9.49 (1.12) 28,298 1.35+ 4.11+ 22 1.74+
9.73 21.96 30,048 1.13(a) 4.68 40 1.71
$ 9.51 (1.99)% $ 54 1.60%(a) 3.74% 37% 2.13%
10.08 4.50 3 1.47(a) 3.70 11 2.00
10.01 10.07 3 1.33(a) 4.05 20 1.66
9.47 4.32 18 1.10(a) 4.45 28 1.44
9.49 (1.04) 17 1.14+ 4.32+ 22 1.53+
9.73 21.93 2 1.13(a) 4.68 40 1.71
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
267
<PAGE> 272
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(d)........... $10.79 $0.51 $(0.51) -- $(0.51) $(0.01)
Year ended 3/31/1999.............. 10.79 0.51 0.04 0.55 (0.51) (0.04)
Year ended 3/31/1998.............. 10.50 0.52 0.29 0.81 (0.52) 0.00(c)
Year ended 3/31/1997.............. 10.52 0.51 (0.02) 0.49 (0.51) --
Period ended 3/31/1996(b)......... 10.69 0.17 (0.17) 0.00 (0.17) --
Year ended 11/30/1995............. 9.76 0.51 0.93 1.44 (0.51) --
INVESTOR A SHARES
Year ended 3/31/2000(d)........... $10.79 $0.49 $(0.51) $(0.02) $(0.49) $(0.01)
Year ended 3/31/1999.............. 10.79 0.49 0.04 0.53 (0.49) (0.04)
Year ended 3/31/1998.............. 10.50 0.50 0.29 0.79 (0.50) 0.00(c)
Year ended 3/31/1997.............. 10.52 0.49 (0.02) 0.47 (0.49) --
Period ended 3/31/1996(b)......... 10.69 0.16 (0.17) (0.01) (0.16) --
Year ended 11/30/1995............. 9.76 0.49 0.93 1.42 (0.49) --
INVESTOR B SHARES
Year ended 3/31/2000(d)........... $10.79 $0.41 $(0.51) $(0.10) (0.41) $(0.01)
Year ended 3/31/1999.............. 10.79 0.43 0.04 0.47 (0.43) (0.04)
Year ended 3/31/1998.............. 10.50 0.44 0.29 0.73 (0.44) 0.00(c)
Year ended 3/31/1997.............. 10.52 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996(b)......... 10.69 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995............. 9.76 0.46 0.93 1.39 (0.46) --
INVESTOR C SHARES
Year ended 3/31/2000(d)........... $10.79 $0.40 $(0.51) $(0.11) $(0.40) $(0.01)
Year ended 3/31/1999.............. 10.79 0.42 0.04 0.46 (0.42) (0.04)
Year ended 3/31/1998.............. 10.50 0.44 0.29 0.73 (0.44) 0.00(c)
Year ended 3/31/1997.............. 10.52 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996(b)......... 10.69 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995............. 9.76 0.46 0.93 1.39 (0.46) --
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01%.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Amount represents less than $0.01 per share.
(d) Per share net investment income has been calculated using the average
shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
268
<PAGE> 273
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 TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.52) $10.27 0.09% $204,854 0.50%(a) 4.88% 14% 0.74%
(0.55) 10.79 5.22 239,195 0.50(a) 4.75 9 0.69
(0.52) 10.79 7.88 253,090 0.50(a) 4.86 16 0.75
(0.51) 10.50 4.71 48,918 0.50(a) 4.80 13 0.79
(0.17) 10.52 0.00# 41,817 0.50+(a) 4.81+ 6 0.82+
(0.51) 10.69 15.02 45,255 0.55(a) 4.92 11 0.75
$(0.50) $10.27 (0.14)% $ 17,396 0.73%(a) 4.65% 14% 0.99%
(0.53) 10.79 5.01 18,729 0.70(a) 4.55 9 0.94
(0.50) 10.79 7.67 13,945 0.70(a) 4.66 16 0.95
(0.49) 10.50 4.51 10,465 0.70(a) 4.60 13 0.99
(0.16) 10.52 (0.07) 14,288 0.70+(a) 4.61+ 6 1.02+
(0.49) 10.69 14.79 14,452 0.75(a) 4.72 11 0.95
$(0.42) $10.27 (0.82)% $ 7,310 1.41%(a) 3.97% 14% 1.74%
(0.47) 10.79 4.39 8,542 1.30(a) 3.95 9 1.69
(0.44) 10.79 7.13 6,819 1.20(a) 4.16 16 1.45
(0.45) 10.50 4.19 5,738 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 6,968 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 6,457 1.05(a) 4.42 11 1.25
$(0.41) $10.27 (0.91)% $ 2,755 1.50%(a) 3.88% 14% 1.74%
(0.46) 10.79 4.36 3,102 1.32(a) 3.93 9 1.69
(0.44) 10.79 7.13 2,698 1.20(a) 4.16 16 1.45
(0.45) 10.50 4.20 5,089 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 5,409 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 5,527 1.05(a) 4.42 11 1.25
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
269
<PAGE> 274
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SOUTH CAROLINA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)........... $10.30 $0.46 $(0.55) $(0.09) $(0.46) --
Year ended 3/31/1999.............. 10.26 0.49 0.03 0.52 (0.48) --
Year ended 3/31/1998.............. 9.79 0.49 0.47 0.96 (0.49) (0.00)#
Year ended 3/31/1997.............. 9.77 0.49 0.02 0.51 (0.49) --
Period ended 3/31/1996(b)......... 9.99 0.17 (0.22) (0.05) (0.17) --
Year ended 11/30/1995............. 8.65 0.52 1.34 1.86 (0.52) --
INVESTOR A SHARES
Year ended 3/31/2000(c)........... $10.30 $0.45 $(0.55) $(0.10) $(0.45) --
Year ended 3/31/1999.............. 10.26 0.44 0.06 0.50 (0.46) --
Year ended 3/31/1998.............. 9.79 0.47 0.47 0.94 (0.47) (0.00)#
Year ended 3/31/1997.............. 9.77 0.47 0.02 0.49 (0.47) --
Period ended 3/31/1996(b)......... 9.99 0.16 (0.22) (0.06) (0.16) --
Year ended 11/30/1995............. 8.65 0.50 1.34 1.84 (0.50) --
INVESTOR B SHARES
Year ended 3/31/2000(c)........... $10.30 $0.38 $(0.55) $(0.17) $(0.38) --
Year ended 3/31/1999.............. 10.26 0.39 0.04 0.43 (0.39) --
Year ended 3/31/1998.............. 9.79 0.40 0.47 0.87 (0.40) (0.00)#
Year ended 3/31/1997.............. 9.77 0.42 0.02 0.44 (0.42) --
Period ended 3/31/1996(b)......... 9.99 0.14 (0.22) (0.08) (0.14) --
Year ended 11/30/1995............. 8.65 0.45 1.34 1.79 (0.45) --
INVESTOR C SHARES
Year ended 3/31/2000(c)........... $10.30 $0.38 $(0.55) $(0.17) $(0.38) --
Year ended 3/31/1999 (c).......... 10.26 0.39 0.04 0.43 (0.39) --
Year ended 3/31/1998.............. 9.79 0.42 0.47 0.89 (0.42) (0.00)#
Year ended 3/31/1997.............. 9.77 0.44 0.02 0.46 (0.44) --
Period ended 3/31/1996(b)......... 9.99 0.15 (0.22) (0.07) (0.15) --
Year ended 11/30/1995............. 8.65 0.45 1.34 1.79 (0.45) --
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
270
<PAGE> 275
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 TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.46) $ 9.75 (0.72)% $28,784 0.60%(a) 4.79% 71% 1.28%
(0.48) 10.30 5.13 12,793 0.60 4.62 3 1.18
(0.49) 10.26 10.04 9,455 0.60(a) 4.79 9 0.99
(0.49) 9.79 5.32 5,113 0.60(a) 4.99 30 1.00
(0.17) 9.77 (0.57) 2,058 0.60+(a) 4.96+ 20 1.13+
(0.52) 9.99 21.99 1,782 0.40(a) 5.44 13 1.08
$(0.45) $ 9.75 (0.95)% $ 906 0.83%(a) 4.56% 71% 1.53%
(0.46) 10.30 4.92 1,060 0.80 4.42 3 1.43
(0.47) 10.26 9.82 1,517 0.80(a) 4.59 9 1.19
(0.47) 9.79 5.12 811 0.80(a) 4.79 30 1.20
(0.16) 9.77 (0.64) 1,219 0.80+(a) 4.76+ 20 1.33+
(0.50) 9.99 21.74 1,238 0.60(a) 5.24 13 1.28
$(0.38) $ 9.75 (1.65)% $ 8,974 1.54%(a) 3.85% 71% 2.28%
(0.39) 10.30 4.25 10,905 1.44 3.78 3 2.18
(0.40) 10.26 9.15 10,394 1.42(a) 3.97 9 1.81
(0.42) 9.79 4.54 12,104 1.35(a) 4.24 30 1.75
(0.14) 9.77 (0.82) 12,991 1.35+(a) 4.21+ 20 1.88+
(0.45) 9.99 21.08 12,670 1.15(a) 4.69 13 1.83
$(0.38) $ 9.75 (1.71)% $ 41 1.60%(a) 3.79% 71% 2.28%
(0.39) 10.30 4.23 77 1.44 3.78 3 2.18
(0.42) 10.26 9.29 28 1.33(a) 4.06 9 1.72
(0.44) 9.79 4.80 247 1.10(a) 4.49 30 1.50
(0.15) 9.77 (0.76) 264 1.17+(a) 4.39+ 20 1.70+
(0.45) 9.99 21.01 20 1.15(a) 4.69 13 1.83
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
271
<PAGE> 276
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TENNESSEE INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)........... $10.46 $0.47 $(0.54) $(0.07) $(0.47) $(0.01)
Year ended 3/31/1999.............. 10.40 0.47 0.06 0.53 (0.47) --
Year ended 3/31/1998.............. 10.08 0.47 0.32 0.79 (0.47) --
Year ended 3/31/1997.............. 10.09 0.46 (0.01) 0.45 (0.46) --
Period ended 3/31/1996(b)......... 10.23 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............. 9.30 0.46 0.93 1.39 (0.46) --
INVESTOR A SHARES
Year ended 3/31/2000(c)........... $10.46 $0.44 $(0.54) $(0.10) $(0.44) $(0.01)
Year ended 3/31/1999.............. 10.40 0.45 0.06 0.51 (0.45) --
Year ended 3/31/1998.............. 10.08 0.45 0.32 0.77 (0.45) --
Year ended 3/31/1997.............. 10.09 0.44 (0.01) 0.43 (0.44) --
Period ended 3/31/1996(b)......... 10.23 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............. 9.30 0.44 0.93 1.37 (0.44) --
INVESTOR B SHARES
Year ended 3/31/2000(c)........... $10.46 $0.38 $(0.54) $(0.16) $(0.38) $(0.01)
Year ended 3/31/1999.............. 10.40 0.38 0.06 0.44 (0.38) --
Year ended 3/31/1998.............. 10.08 0.40 0.32 0.72 (0.40) --
Year ended 3/31/1997.............. 10.09 0.41 (0.01) 0.40 (0.41) --
Period ended 3/31/1996(b)......... 10.23 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995............. 9.30 0.41 0.93 1.34 (0.41) --
INVESTOR C SHARES
Year ended 3/31/2000(c)........... $10.45 $0.39 $(0.57) $(0.18) $(0.39) $(0.01)
Year ended 3/31/1999.............. 10.40 0.39 0.05 0.44 (0.39) --
Year ended 3/31/1998.............. 10.08 0.40 0.32 0.72 (0.40) --
Year ended 3/31/1997.............. 10.09 0.42 (0.01) 0.41 (0.42) --
Period ended 3/31/1996(b)......... 10.23 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995............. 9.30 0.41 0.93 1.34 (0.41) --
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
272
<PAGE> 277
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 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>
$(0.48) $ 9.91 (0.67)% $37,736 0.50%(a) 4.62% 49% 0.94%
(0.47) 10.46 5.18 42,826 0.50 4.48 22 0.85
(0.47) 10.40 7.99 39,091 0.50(a) 4.58 38 0.84
(0.46) 10.08 4.54 8,869 0.50(a) 4.55 28 0.93
(0.15) 10.09 0.12 8,408 0.50+ 4.51+ 3 1.02+
(0.46) 10.23 15.22 7,160 0.57(a) 4.65 34 0.92
$(0.45) $ 9.91 (0.90)% $ 7,810 0.73%(a) 4.39% 49% 1.19%
(0.45) 10.46 4.97 9,242 0.70 4.28 22 1.10
(0.45) 10.40 7.77 8,061 0.70(a) 4.38 38 1.04
(0.44) 10.08 4.33 6,840 0.70(a) 4.35 28 1.13
(0.15) 10.09 0.06 7,439 0.70+ 4.31+ 3 1.22+
(0.44) 10.23 15.00 7,573 0.77(a) 4.45 34 1.12
$(0.39) $ 9.91 (1.58)% $ 1,783 1.41%(a) 3.71% 49% 1.94%
(0.38) 10.46 4.34 3,007 1.30 3.68 22 1.85
(0.40) 10.40 7.24 2,924 1.20(a) 3.88 38 1.54
(0.41) 10.08 4.02 3,050 1.00(a) 4.05 28 1.43
(0.14) 10.09 (0.04) 3,528 1.00+ 4.01+ 3 1.52+
(0.41) 10.23 14.65 3,573 1.07(a) 4.15 34 1.42
$(0.40) $ 9.87 (1.96)% $ 3 1.50%(a) 3.62% 49% 1.94%
(0.39) 10.45 4.28 33 1.11 3.87 22 1.85
(0.40) 10.40 7.29 3 1.20(a) 3.88 38 1.54
(0.42) 10.08 4.08 2 1.00(a) 4.05 28 1.43
(0.14) 10.09 (0.02) 2 1.00+ 4.01+ 3 1.52+
(0.41) 10.23 14.62 2 1.07(a) 4.15 34 1.42
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
273
<PAGE> 278
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TENNESSEE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)............................ $10.30 $0.47 $(0.62) $(0.15) $(0.47)
Year ended 3/31/1999............................... 10.22 0.48 0.08 0.56 (0.48)
Year ended 3/31/1998............................... 9.70 0.48 0.52 1.00 (0.48)
Year ended 3/31/1997............................... 9.68 0.48 0.02 0.50 (0.48)
Period ended 3/31/1996(b).......................... 9.87 0.16 (0.19) (0.03) (0.16)
Year ended 11/30/1995.............................. 8.58 0.52 1.29 1.81 (0.52)
INVESTOR A SHARES
Year ended 3/31/2000(c)............................ $10.30 $0.43 $(0.62) $(0.19) $(0.43)
Year ended 3/31/1999(c)............................ 10.22 0.43 0.11 0.54 (0.46)
Year ended 3/31/1998............................... 9.70 0.46 0.52 0.98 (0.46)
Year ended 3/31/1997............................... 9.68 0.46 0.02 0.48 (0.46)
Period ended 3/31/1996(b).......................... 9.87 0.15 (0.19) (0.04) (0.15)
Year ended 11/30/1995.............................. 8.58 0.50 1.29 1.79 (0.50)
INVESTOR B SHARES
Year ended 3/31/2000(c)............................ $10.30 $0.38 $(0.62) $(0.24) $(0.38)
Year ended 3/31/1999............................... 10.22 0.39 0.08 0.47 (0.39)
Year ended 3/31/1998............................... 9.70 0.40 0.52 0.92 (0.40)
Year ended 3/31/1997............................... 9.68 0.40 0.02 0.42 (0.40)
Period ended 3/31/1996(b).......................... 9.87 0.14 (0.19) (0.05) (0.14)
Year ended 11/30/1995.............................. 8.58 0.45 1.29 1.74 (0.45)
INVESTOR C SHARES
Year ended 3/31/2000(c)............................ $10.30 $0.36 $(0.62) $(0.26) $(0.36)
Year ended 3/31/1999(c)............................ 10.22 0.38 0.09 0.47 (0.39)
Year ended 3/31/1998(c)............................ 9.70 0.40 0.52 0.92 (0.40)
Year ended 3/31/1997............................... 9.68 0.43 0.02 0.45 (0.43)
Period ended 3/31/1996 (b)......................... 9.87 0.14 (0.19) (0.05) (0.14)
Year ended 11/30/1995.............................. 8.58 0.45 1.29 1.74 (0.45)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
274
<PAGE> 279
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE NET RATIO OF RATIO OF
NET ASSETS OPERATING ASSETS NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCLUDING INCOME TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET INTEREST AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS EXPENSE ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$9.68 (1.36)% $5,114 0.60% -- 4.83% 34% 2.14%
10.30 5.53 5,762 0.60 -- 4.61 40 1.55
10.22 10.45 4,559 0.60 (a) 4.74 19 1.20
9.70 5.23 2,594 0.60 (a) 4.91 31 1.24
9.68 (0.30) 975 0.60+ 0.61%+ 4.92+ 2 1.47+
9.87 21.52 768 0.40 (a) 5.49 45 1.27
$9.68 (1.59)% $1,357 0.83% -- 4.60% 34% 2.39%
10.30 5.32 484 0.80 -- 4.41 40 1.80
10.22 10.23 1,440 0.80 4.54 19 1.40
9.70 5.02 1,018 0.80 (a) 4.71 31 1.44
9.68 (0.37) 973 0.80+ 0.81%+ 4.72+ 2 1.67+
9.87 21.28 203 0.60 (a) 5.29 45 1.47
$9.68 (2.28)% $4,001 1.54% -- 3.89% 34% 3.14%
10.30 4.64 4,718 1.45 -- 3.76 40 2.55
10.22 9.56 4,915 1.42 (a) 3.92 19 2.02
9.70 4.45 5,319 1.35 (a) 4.16 31 1.99
9.68 (0.55) 6,761 1.35+ 1.36%+ 4.17+ 2 2.22+
9.87 20.63 6,619 1.15 (a) 4.74 45 2.02
$9.68 (2.35)% $ 143 1.60% -- 3.83% 34% 3.14%
10.30 4.62 68 1.46 -- 3.75 40 2.55
10.22 9.65 42 1.33 (a) 4.01 19 1.93
9.70 4.71 38 1.10 (a) 4.41 31 1.74
9.68 (0.49) 37 1.18+ 1.18%+ 4.34+ 2 2.05+
9.87 20.62 64 1.15 (a) 4.74 45 2.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
275
<PAGE> 280
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TEXAS INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000.............. $10.48 $0.49 $(0.48) $ 0.01 $(0.49) $(0.00)#
Year ended 3/31/1999.............. 10.50 0.49 0.02 0.51 (0.49) (0.04)
Year ended 3/31/1998.............. 10.18 0.49 0.32 0.81 (0.49) --
Year ended 3/31/1997.............. 10.21 0.47 (0.03) 0.44 (0.47) --
Period ended 3/31/1996(b)......... 10.36 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995............. 9.53 0.46 0.83 1.29 (0.46) --
INVESTOR A SHARES
Year ended 3/31/2000.............. $10.48 $0.47 $(0.48) $(0.01) $(0.47) $(0.00)#
Year ended 3/31/1999.............. 10.50 0.47 0.02 0.49 (0.47) (0.04)
Year ended 3/31/1998.............. 10.18 0.47 0.32 0.79 (0.47) --
Year ended 3/31/1997.............. 10.21 0.45 (0.03) 0.42 (0.45) --
Period ended 3/31/1996(b)......... 10.36 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995............. 9.53 0.44 0.83 1.27 (0.44) --
INVESTOR B SHARES
Year ended 3/31/2000.............. $10.48 $0.40 $(0.48) $(0.08) $(0.40) $(0.00)#
Year ended 3/31/1999.............. 10.50 0.41 0.02 0.43 (0.41) (0.04)
Year ended 3/31/1998.............. 10.18 0.42 0.32 0.74 (0.42) --
Year ended 3/31/1997.............. 10.21 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996(b)......... 10.36 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995............. 9.53 0.41 0.83 1.24 (0.41) --
INVESTOR C SHARES
Year ended 3/31/2000.............. $10.48 $0.38 $(0.48) $(0.10) $(0.38) $(0.00)#
Period ended 3/31/1999(c)......... 10.50 0.40 0.02 0.42 (0.40) (0.04)
Year ended 3/31/1998.............. 10.18 0.42 0.32 0.74 (0.42) --
Year ended 3/31/1997.............. 10.21 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996(b)......... 10.36 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995............. 9.53 0.41 0.83 1.24 (0.41) --
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
276
<PAGE> 281
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME 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>
$(0.49) $10.00 0.17% $326,323 0.50%(a) 4.84% 33% 0.72%
(0.53) 10.48 4.98 391,431 0.50 4.66 22 0.68
(0.49) 10.50 8.09 385,770 0.50 4.74 19 0.75
(0.47) 10.18 4.37 24,764 0.50 4.59 34 0.84
(0.16) 10.21 0.05 27,176 0.50+ 4.52+ 11 0.89+
(0.46) 10.36 13.83 26,382 0.57(a) 4.62 64 0.83
$(0.47) $10.00 (0.06)% $ 6,075 0.73%(a) 4.61% 33% 0.97%
(0.51) 10.48 4.77 6,909 0.70 4.46 22 0.93
(0.47) 10.50 7.87 2,666 0.70 4.54 19 0.95
(0.45) 10.18 4.17 909 0.70 4.39 34 1.04
(0.15) 10.21 (0.02) 801 0.70+ 4.32+ 11 1.09+
(0.44) 10.36 13.60 806 0.77(a) 4.42 64 1.03
$(0.40) $10.00 (0.74)% $ 2,005 1.42%(a) 3.92% 33% 1.72%
(0.45) 10.48 4.15 2,137 1.30 3.86 22 1.68
(0.42) 10.50 7.34 2,184 1.20 4.04 19 1.45
(0.42) 10.18 3.87 2,182 1.00 4.09 34 1.34
(0.14) 10.21 (0.12) 2,845 1.00+ 4.02+ 11 1.39+
(0.41) 10.36 13.27 3,136 1.07(a) 4.12 64 1.33
$(0.38) $10.00 (0.86)% $ 3 1.50%(a) 3.84% 33% 1.72%
(0.44) 10.48 4.14 3 1.33 3.83 22 1.68
(0.42) 10.50 7.34 293 1.20 4.04 19 1.45
(0.42) 10.18 3.87 591 1.00 4.09 34 1.34
(0.14) 10.21 (0.12) 569 1.00+ 4.02+ 11 1.39+
(0.41) 10.36 13.27 570 1.07(a) 4.12 64 1.33
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
277
<PAGE> 282
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TEXAS MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)............................ $10.11 $0.48 $(0.55) $(0.07) $(0.48)
Year ended 3/31/1999............................... 10.04 0.46 0.07 0.53 (0.46)
Year ended 3/31/1998(c)............................ 9.48 0.48 0.56 1.04 (0.48)
Year ended 3/31/1997............................... 9.49 0.48 (0.01) 0.47 (0.48)
Period ended 3/31/1996(b).......................... 9.70 0.16 (0.21) (0.05) (0.16)
Year ended 11/30/1995.............................. 8.39 0.50 1.31 1.81 (0.50)
INVESTOR A SHARES
Year ended 3/31/2000(c)............................ $10.11 $0.45 $(0.55) $(0.10) $(0.45)
Year ended 3/31/1999............................... 10.04 0.44 0.07 0.51 (0.44)
Year ended 3/31/1998(c)............................ 9.48 0.46 0.56 1.02 (0.46)
Year ended 3/31/1997............................... 9.49 0.46 (0.01) 0.45 (0.46)
Period ended 3/31/1996(b).......................... 9.70 0.15 (0.21) (0.06) (0.15)
Year ended 11/30/1995.............................. 8.39 0.49 1.31 1.80 (0.49)
INVESTOR B SHARES
Year ended 3/31/2000(c)............................ $10.11 $0.39 $(0.55) $(0.16) $(0.39)
Year ended 3/31/1999............................... 10.04 0.38 0.07 0.45 (0.38)
Year ended 3/31/1998(c)............................ 9.48 0.39 0.56 0.95 (0.39)
Year ended 3/31/1997............................... 9.49 0.40 (0.01) 0.39 (0.40)
Period ended 3/31/1996(b).......................... 9.70 0.13 (0.21) (0.08) (0.13)
Year ended 11/30/1995.............................. 8.39 0.43 1.31 1.74 (0.43)
INVESTOR C SHARES
Year ended 3/31/2000(c)............................ $10.11 $0.38 $(0.55) $(0.17) $(0.38)
Year ended 3/31/1999............................... 10.04 0.38 0.07 0.45 (0.38)
Year ended 3/31/1998(c)............................ 9.48 0.40 0.56 0.96 (0.40)
Year ended 3/31/1997............................... 9.49 0.43 (0.01) 0.42 (0.43)
Period ended 3/31/1996(b).......................... 9.70 0.14 (0.21) (0.07) (0.14)
Year ended 11/30/1995.............................. 8.39 0.43 1.31 1.74 (0.43)
</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.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
278
<PAGE> 283
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
NET ASSETS OPERATING INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.56 (0.63)% $ 7,868 0.60%(a) 4.95% 39% 1.75%
10.11 5.41 9,393 0.60 4.59 34 1.25
10.04 11.12 7,615 0.60(a) 4.83 33 1.07
9.48 5.00 5,675 0.60(a) 4.99 52 1.03
9.49 (0.55) 5,138 0.60+ 4.92+ 6 1.11+
9.70 22.09 4,613 0.39(a) 5.45 50 1.05
$ 9.56 (0.86)% $ 333 0.83%(a) 4.72% 39% 2.00%
10.11 5.20 401 0.80 4.39 34 1.50
10.04 10.90 419 0.80(a) 4.63 33 1.27
9.48 4.78 371 0.80(a) 4.79 52 1.23
9.49 (0.62) 317 0.80+ 4.72+ 6 1.31+
9.70 21.85 351 0.59(a) 5.25 50 1.25
$ 9.56 (1.56)% $ 5,569 1.54%(a) 4.01% 39% 2.75%
10.11 4.53 6,828 1.45 3.74 34 2.25
10.04 10.23 8,804 1.42(a) 4.01 33 1.89
9.48 4.21 10,090 1.35(a) 4.24 52 1.78
9.49 (0.80) 11,838 1.35+ 4.17+ 6 1.86+
9.70 21.19 12,587 1.14(a) 4.70 50 1.80
$ 9.56 (1.62)% $ 84 1.60%(a) 3.95% 39% 2.75%
10.11 4.51 84 1.46 3.73 34 2.25
10.04 10.31 80 1.33(a) 4.10 33 1.80
9.48 4.47 73 1.10(a) 4.49 52 1.53
9.49 (0.74) 70 1.16+ 4.36+ 6 1.67+
9.70 21.15 70 1.14(a) 4.70 50 1.80
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
279
<PAGE> 284
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 INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VIRGINIA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)........... $10.98 $0.50 $(0.47) $ 0.03 $(0.50) $(0.00)#
Year ended 3/31/1999.............. 10.92 0.50 0.06 0.56 (0.50) --
Year ended 3/31/1998.............. 10.59 0.51 0.33 0.84 (0.51) --
Year ended 3/31/1997.............. 10.69 0.51 (0.10) 0.41 (0.51) --
Period ended 3/31/1996(b)......... 10.83 0.17 (0.14) 0.03 (0.17) --
Year ended 11/30/1995............. 9.94 0.51 0.89 1.40 (0.51) (0.00)#
INVESTOR A SHARES
Year ended 3/31/2000(c)........... $10.98 $0.47 $(0.47) $ 0.00 $(0.47) $(0.00)#
Year ended 3/31/1999(c)........... 10.92 0.47 0.07 0.54 (0.48) --
Year ended 3/31/1998.............. 10.59 0.49 0.33 0.82 (0.49) --
Year ended 3/31/1997.............. 10.69 0.49 (0.10) 0.39 (0.49) --
Period ended 3/31/1996(b)......... 10.83 0.16 (0.14) 0.02 (0.16) --
Year ended 11/30/1995............. 9.94 0.49 0.89 1.38 (0.49) (0.00)#
INVESTOR B SHARES
Year ended 3/31/2000(c)........... $10.98 $0.40 $(0.47) $(0.07) $(0.40) $(0.00)#
Year ended 3/31/1999.............. 10.92 0.41 0.06 0.47 (0.41) --
Year ended 3/31/1998(c)........... 10.59 0.44 0.33 0.77 (0.44) --
Year ended 3/31/1997.............. 10.69 0.46 (0.10) 0.36 (0.46) --
Period ended 3/31/1996(b)......... 10.83 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............. 9.94 0.46 0.89 1.35 (0.46) (0.00)#
INVESTOR C SHARES
Year ended 3/31/2000(c)........... $10.98 $0.39 $(0.47) $(0.08) $(0.39) $(0.00)#
Year ended 3/31/1999(c)........... 10.92 0.39 0.08 0.47 (0.41) --
Year ended 3/31/1998(c)........... 10.59 0.44 0.33 0.77 (0.44) --
Year ended 3/31/1997.............. 10.69 0.46 (0.10) 0.36 (0.46) --
Period ended 3/31/1996(b)......... 10.83 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995............. 9.94 0.46 0.89 1.35 (0.46) (0.00)#
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
# Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
280
<PAGE> 285
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
TOTAL NET ASSETS OPERATING INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME 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>
$(0.50) $10.51 0.29% $228,698 0.50%(a) 4.66% 23% 0.73%
(0.50) 10.98 5.21 227,299 0.50(a) 4.54 5 0.70
(0.51) 10.92 8.12 170,969 0.50(a) 4.77 21 0.74
(0.51) 10.59 3.92 148,701 0.50(a) 4.79 20 0.74
(0.17) 10.69 0.27 155,464 0.50+(a) 4.72+ 2 0.76+
(0.51) 10.83 14.39 157,252 0.56(a) 4.87 22 0.74
$(0.47) $10.51 0.06% $ 46,663 0.73%(a) 4.43% 23% 0.98%
(0.48) 10.98 5.00 56,733 0.70(a) 4.34 5 0.95
(0.49) 10.92 7.91 54,080 0.70(a) 4.57 21 0.94
(0.49) 10.59 3.71 55,791 0.70(a) 4.59 20 0.94
(0.16) 10.69 0.20 68,003 0.70+(a) 4.52+ 2 0.96+
(0.49) 10.83 14.16 73,253 0.76(a) 4.67 22 0.94
$(0.40) $10.51 (0.63)% $ 9,073 1.41%(a) 3.75% 23% 1.73%
(0.41) 10.98 4.38 10,296 1.30(a) 3.74 5 1.70
(0.44) 10.92 7.37 9,643 1.20(a) 4.07 21 1.44
(0.46) 10.59 3.40 10,516 1.00(a) 4.29 20 1.24
(0.15) 10.69 0.10 11,926 1.00+(a) 4.22+ 2 1.26+
(0.46) 10.83 13.82 12,163 1.06(a) 4.37 22 1.24
$(0.39) $10.51 (0.71)% $ 759 1.50%(a) 3.66% 23% 1.73%
(0.41) 10.98 4.36 1,100 1.34(a) 3.70 5 1.70
(0.44) 10.92 7.37 1,949 1.20(a) 4.07 21 1.44
(0.46) 10.59 3.40 6,463 1.00(a) 4.29 20 1.24
(0.15) 10.69 0.10 6,909 1.00+(a) 4.22+ 2 1.26+
(0.46) 10.83 13.82 7,152 1.06(a) 4.37 22 1.24
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
281
<PAGE> 286
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
VIRGINIA MUNICIPAL BOND
PRIMARY A SHARES
Year ended 3/31/2000(c)............................ $9.99 $0.46 $(0.54) $(0.08) $(0.46)
Year ended 3/31/1999............................... 9.95 0.47 0.04 0.51 (0.47)
Year ended 3/31/1998............................... 9.40 0.47 0.55 1.02 (0.47)
Year ended 3/31/1997............................... 9.38 0.48 0.02 0.50 (0.48)
Period ended 3/31/1996(b).......................... 9.62 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995.............................. 8.29 0.51 1.33 1.84 (0.51)
INVESTOR A SHARES
Year ended 3/31/2000(c)............................ $9.99 $0.39 $(0.55) $(0.16) $(0.39)
Year ended 3/31/1999(c)............................ 9.95 0.45 0.04 0.49 (0.45)
Year ended 3/31/1998(c)............................ 9.40 0.45 0.55 1.00 (0.45)
Year ended 3/31/1997............................... 9.38 0.46 0.02 0.48 (0.46)
Period ended 3/31/1996(b).......................... 9.62 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995.............................. 8.29 0.49 1.33 1.82 (0.49)
INVESTOR B SHARES
Year ended 3/31/2000(c)............................ $9.99 $0.38 $(0.54) $(0.16) $(0.38)
Year ended 3/31/1999............................... 9.95 0.38 0.04 0.42 (0.38)
Year ended 3/31/1998(c)............................ 9.40 0.39 0.55 0.94 (0.39)
Year ended 3/31/1997............................... 9.38 0.41 0.02 0.43 (0.41)
Period ended 3/31/1996(b).......................... 9.62 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995.............................. 8.29 0.44 1.33 1.77 (0.44)
INVESTOR C SHARES
Year ended 3/31/2000(c)............................ $9.99 $0.38 $(0.54) $(0.16) $(0.38)
Year ended 3/31/1999............................... 9.95 0.37 0.04 0.41 (0.37)
Year ended 3/31/1998(c)............................ 9.40 0.40 0.55 0.95 (0.40)
Year ended 3/31/1997............................... 9.38 0.43 0.02 0.45 (0.43)
Period ended 3/31/1996(b).......................... 9.62 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995.............................. 8.29 0.44 1.33 1.77 (0.44)
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(c) Per share net investment income has been calculated using the monthly
average shares method.
SEE NOTES TO FINANCIAL STATEMENTS.
282
<PAGE> 287
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES TO ---------------
RATIO OF AVERAGE NET RATIO OF NET RATIO OF
NET ASSETS OPERATING ASSETS INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCLUDING INCOME TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET INTEREST AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS EXPENSE ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
9.45$..... 0.69% $16,378 0.60% -- 4.87% 21% 1.35%
9.99..... 5.18 12,992 0.60 (a) 4.66 11 1.11
9.95..... 11.11 11,026 0.59 (a) 4.86 9 0.96
9.40..... 5.44 5,726 0.60 (a) 5.10 37 0.98
9.38..... (0.84) 3,296 0.60+ 0.61+ 5.06+ 8 1.07+
9.62..... 22.63 3,527 0.39 (a) 5.51 16 1.04
9.44$..... 1.02% $ 590 0.83% -- 4.64% 21% 1.60%
9.99..... 4.98 965 0.80 (a) 4.46 11 1.36
9.95..... 10.88 1,222 0.79 (a) 4.66 9 1.16
9.40..... 5.23 726 0.80 (a) 4.90 37 1.18
9.38..... (0.91) 661 0.80+ 0.81+ 4.86+ 8 1.27+
9.62..... 22.39 650 0.59 (a) 5.31 16 1.24
9.45$..... 1.61% $10,608 1.53% -- 3.94% 21% 2.35%
9.99..... 4.30 13,499 1.45 (a) 3.81 11 2.11
9.95..... 10.21 13,082 1.41 (a) 4.04 9 1.78
9.40..... 4.65 13,972 1.35 (a) 4.35 37 1.73
9.38..... (1.09) 15,938 1.35+ 1.36+ 4.31+ 8 1.82+
9.62..... 21.72 16,489 1.14 (a) 4.76 16 1.79
9.45$..... 1.58% $ 3 1.60% -- 3.87% 21% 2.35%
9.99..... 4.21 3 1.45 (a) 3.81 11 2.11
9.95..... 10.31 3 1.32 (a) 4.13 9 1.69
9.40..... 4.92 45 1.10 (a) 4.60 37 1.48
9.38..... (1.03) 43 1.16+ 1.17+ 4.50+ 8 1.63+
9.62..... 21.71 34 1.14 (a) 4.76 16 1.79
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
283
<PAGE> 288
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS
Nations Fund Trust (the "Trust") and Nations Reserves ("Reserves") are each
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company. At March 31, 2000, the Trust offered
thirty-six separate portfolios and Reserves offered sixteen separate portfolios.
These financial statements pertain only to the municipal bond portfolios of the
Trust and Reserves: Short-Term Municipal Income Fund, Intermediate Municipal
Bond Fund, Municipal Income Fund, California Municipal Bond Fund, Florida
Intermediate Municipal Bond Fund, Florida Municipal Bond Fund, Georgia
Intermediate Municipal Bond Fund, Georgia Municipal Bond Fund, Maryland
Intermediate Municipal Bond Fund, Maryland Municipal Bond Fund, North Carolina
Intermediate Municipal Bond Fund, North Carolina Municipal Bond Fund, South
Carolina Intermediate Municipal Bond Fund, South Carolina Municipal Bond Fund,
Tennessee Intermediate Municipal Bond Fund, Tennessee Municipal Bond Fund, Texas
Intermediate Municipal Bond Fund, Texas Municipal Bond Fund, Virginia
Intermediate Municipal Bond Fund and Virginia Municipal Bond Fund (each a "Fund"
and collectively, the "Funds"). Financial statements for the other portfolios of
the Trust and Reserves are presented under separate cover. The Funds currently
offer four classes of shares: Primary A Shares, Investor A Shares, Investor B
Shares and Investor C Shares. Shareholders of a Fund have equal voting rights on
matters affecting all shareholders of the Fund. In addition, each class of
shares of a Fund has exclusive voting rights on matters that relate solely to
that class and separate voting rights on matters in which the interests of one
class differ from the interests of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make 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 are generally valued by an independent pricing
service. These valuations are based upon a matrix system and/or appraisals which
take into consideration such factors as yields, prices, maturities, redemption
features and credit ratings on comparable securities. Certain securities may be
valued based upon quotes provided by one or more principal market makers.
Restricted securities, securities for which market quotations are not readily
available, and certain other assets may be valued under procedures adopted by
the Boards of Trustees. Short-term investments that mature in 60 days or less
are valued at amortized cost, which approximates current market value.
A Fund's municipal holdings may include obligations of issuers that rely in
whole or in part for payment of interest and principal on state specific
revenues, real property taxes, revenues from particular institutions, such as
healthcare institutions, or obligations secured by mortgages on real property.
Consequently, the impact of changes in state law or regulations or the economic
conditions in a particular state should be considered.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on ex-
dividend date. Each Fund's investment income and realized and unrealized gains
and losses are allocated among its classes based upon the relative net assets of
each class of shares.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after trade date; interest income is not accrued until
settlement date. At the time a Fund enters into such transactions, it instructs
its custodian to segregate assets with a current value at least equal to the
amount of its when-issued or delayed-delivery purchase commitments.
Dividends and distributions to shareholders: It is the policy of each Fund to
declare dividends from net investment income daily and to pay such dividends
monthly. Each Fund will distribute net realized capital gains (including net
short-term capital gains), at least annually after the fiscal year in which the
capital gains were earned, unless offset by any available capital loss
carryforward. Income distributions and capital gain distributions on a Fund
level are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles.
Certain reclassifications are made to each Fund's capital accounts to reflect
income and gains available for distribution (or available capital loss
carryforwards) under Federal income tax regulations. These reclassifications are
due to different book and tax accounting for market
284
<PAGE> 289
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
discount, dividends and use of the tax accounting practice known as
equalization.
Reclassifications for the period ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
INCREASE/
(DECREASE) INCREASE/
INCREASE/ UNDISTRIBUTED (DECREASE)
(DECREASE) NET ACCUMULATED
PAID-IN INVESTMENT NET REALIZED
CAPITAL INCOME GAIN/(LOSS)
(000) (000) (000)
-----------------------------------------
<S> <C> <C> <C>
Short-Term Municipal
Income.................. $ -- $ 1 $ (1)
Intermediate Municipal
Bond.................... -- 41 (41)
Municipal Income.......... -- 333 (333)
California Municipal
Bond.................... 223 21 (244)
Florida Intermediate
Municipal Bond.......... -- 12 (12)
Florida Municipal Bond.... -- 39 (39)
Georgia Intermediate
Municipal Bond.......... -- 86 (86)
Georgia Municipal Bond.... -- 40 (40)
Maryland Intermediate
Municipal Bond.......... (5) (2) 7
Maryland Municipal Bond... -- 6 (6)
North Carolina
Intermediate Municipal
Bond.................... -- 209 (209)
North Carolina Municipal
Bond.................... -- -- --
South Carolina
Intermediate Municipal
Bond.................... -- 187 (187)
South Carolina Municipal
Bond.................... -- 4 (4)
Tennessee Intermediate
Municipal Bond.......... -- (1) 1
Tennessee Municipal
Bond.................... -- -- --
Texas Intermediate
Municipal Bond.......... -- 185 (185)
Texas Municipal Bond...... -- 17 (17)
Virginia Intermediate
Municipal Bond.......... -- (12) 12
Virginia Municipal Bond... -- 62 (62)
</TABLE>
Federal income tax: Each Fund intends to continue to qualify as a regulated
investment company by complying with the applicable requirements of the Internal
Revenue Code of 1986, as amended, and by distributing substantially all of its
earnings to shareholders. Therefore, no provision is made for Federal income or
excise taxes.
Expenses: General expenses of the Trust and Reserves 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.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
The Trust and Reserves have each entered into an investment advisory agreement
(the "Investment Advisory Agreements") 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 Funds. 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 Fund:
<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
Short-Term Municipal Income................. 0.30%
Intermediate Municipal Bond and eight
single-state Intermediate Municipal Bond
Funds..................................... 0.40%
Municipal Income and nine single-state
Municipal Bond Funds...................... 0.50%
</TABLE>
Effective May 14, 1999, the maximum advisory fee payable by the Funds decreased
by 0.10% of the Funds' average daily net assets (except for Short-Term Municipal
Income, which decreased by 0.20%). The table above shows the current maximum
annual rate.
The Trust and Reserves have each entered into a sub-advisory agreement with BAAI
and Banc of America Capital Management, Inc. ("BACAP") (formerly known as
TradeStreet Investment Associates, Inc.), a wholly-owned subsidiary of Bank of
America, pursuant to which BACAP is entitled to receive a sub-advisory fee from
BAAI at the maximum annual rate of 0.07% of each Fund's average daily net
assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust and
Reserves. 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 0.22% of each Fund's average daily net assets.
Effective May 14, 1999, the combined co-administration fee payable by the Funds
to Stephens and BAAI increased by 0.10% of the Fund's average daily net assets.
The Bank of New York ("BNY") serves as sub-administrator of the Trust and
Reserves pursuant to agreements with BAAI. For the period ended March 31, 2000,
Stephens and BAAI earned $1,560,685 and $3,787,224, respectively, from the Funds
for their co-administration services.
285
<PAGE> 290
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
BAAI and/or the sub-adviser and Stephens may, from time to time, reduce their
fees payable by each Fund. Effective August 1, 1999, BAAI and/or the sub-adviser
and Stephens agreed to reimburse expenses and/or waive their fees until July 31,
2000 to the extent that total expenses (excluding shareholder servicing and
distribution fees) as an annualized percentage of the respective Fund's average
daily net assets, exceeded the following percentages: 0.40% for the Short-Term
Municipal Income Fund, 0.50% for the Intermediate Municipal Bond Fund and the
eight single-state Intermediate Municipal Bond Funds and 0.60% for the Municipal
Income Fund and the nine single-state Municipal Bond Funds. Prior to that date,
BAAI and/or the sub-adviser and Stephens had voluntarily agreed to reimburse
expenses and/or waive their fees to maintain these total expense limits.
BNY also serves as the custodian of the Trust's and Reserves' assets.
Effective December 1, 1999, First Data Investor Services Group, Inc., ("First
Data"), the transfer agent for the Funds' shares, was acquired by PFPC, Inc.
("PFPC"). PFPC provides the same services as the transfer agent for the Funds'
shares as were previously provided by First Data. Bank of America serves as the
sub-transfer agent for the Primary A Shares of the Funds. For the period ended
March 31, 2000, Bank of America earned approximately $82,870 for providing such
services.
Stephens also serves as distributor of the Funds' shares. For the period ended
March 31, 2000, the Funds were informed that the distributor received
$10,714,068 in front end sales charges for sales of Investor A Shares and
$368,150 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 and Reserves' eligible Trustees may participate in non-qualified
deferred compensation and retirement plans which may be terminated at any time.
All benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Funds' assets. Income earned on each
plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of Nations Treasury Fund, a portfolio of Nations Fund,
Inc., 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.
Certain Funds have made daily investments of cash balances in Nations Municipal
Reserves, a portfolio of Reserves, pursuant to an exemptive order received from
the Securities and Exchange Commission. For the period ended March 31, 2000, the
Funds earned $1,077,698 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 and Reserves have each adopted shareholder servicing plans and
distribution plans for the Investor A, Investor B and Investor C Shares of each
Fund. The shareholder servicing plans permit the Funds to compensate or
reimburse servicing agents for shareholder services provided by the servicing
agents. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940
Act, permit the Funds to compensate or reimburse the distributor (and for
Investor A Shares, the distributor and/or selling agents) for activities or
expenses primarily intended to result in the sale of the classes' shares.
Payments under the Investor A shareholder servicing and distribution plan are
limited to 0.25% of Investor A average daily net assets. Payments under the
shareholder servicing plan and distribution plan, respectively, for both
Investor B and Investor C Shares are limited to 0.25% and 0.75% of each
respective class's average daily net assets. Payments are made at an annual
rate, as a percentage of average daily net assets, set from time to time by the
Boards of Trustees, 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.
286
<PAGE> 291
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At March 31, 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...
Municipal Income and California
Municipal Bond................. 0.20% 0.25%
All other funds.................. 0.25%* 0.25%
Investor B and Investor C
Shareholder Servicing Plans...... 0.25% 0.25%
Investor B Distribution Plan:
Short-Term Municipal Income...... 0.75%** 0.75%
Intermediate Municipal Bond and
the eight single-State
Intermediate Municipal Bond
Funds.......................... 0.75%*** 0.75%
Municipal Income and the eight
single-state Municipal Bond
Funds.......................... 0.75%*** 0.75%
California Municipal Bond........ 0.60% 0.75%
Investor C Distribution Plan....... 0.75% 0.75%
</TABLE>
---------------
* Reflects a rate change effective September 1, 1999 from 0.20%. In addition, a
separate shareholder servicing plan has been adopted for the Investor A
Shares of Short-Term Municipal Income.
** Reflects rate changes commencing September 1, 1999 from 0.10%.
*** Reflects rate changes effective September 1, 1999 from 0.55% for
Intermediate Municipal Bond Fund and the eight single-state Intermediate
Municipal Bond Funds and 0.60% for Municipal Income and the eight
single-state Municipal Bond Funds.
4. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government and short-term investments, for the period ended March
31, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
---------------------
<S> <C> <C>
Short-Term Municipal Income..... $114,486 $103,972
Intermediate Municipal Bond..... 257,338 272,833
Municipal Income................ 223,471 246,062
California Municipal Bond....... 63,256 75,558
Florida Intermediate Municipal
Bond.......................... 28,257 42,792
Florida Municipal Bond.......... 25,914 33,386
Georgia Intermediate Municipal
Bond.......................... 39,087 44,448
Georgia Municipal Bond.......... 13,863 11,231
Maryland Intermediate Municipal
Bond.......................... 40,654 45,627
</TABLE>
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
---------------------
<S> <C> <C>
Maryland Municipal Bond......... 20,780 17,387
North Carolina Intermediate
Municipal Bond................ 36,223 48,632
North Carolina Municipal Bond... 15,891 14,665
South Carolina Intermediate
Municipal Bond................ 33,750 61,545
South Carolina Municipal Bond... 37,036 20,916
Tennessee Intermediate Municipal
Bond.......................... 23,852 28,055
Tennessee Municipal Bond........ 4,427 3,404
Texas Intermediate Municipal
Bond.......................... 117,897 167,518
Texas Municipal Bond............ 5,748 7,135
Virginia Intermediate Municipal
Bond.......................... 73,227 63,182
Virginia Municipal Bond......... 9,309 5,247
</TABLE>
There were no purchases and sales of long-term U.S. government securities for
the year ended March 31, 2000.
5. SHARES OF BENEFICIAL INTEREST
As of March 31, 2000, an unlimited number of shares of beneficial interest
without par value were authorized for each of the Trust and Reserves. The
Trust's and Reserves' Declarations of Trust authorize the Boards of Trustees 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.
6. LINES OF CREDIT
The Trust and Reserves 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.
At March 31, 2000, there were no loans outstanding under this Agreement. For the
period ended March 31,
287
<PAGE> 292
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2000, borrowings by the Funds under the Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
-----------------------------------------------------------
<S> <C> <C>
Short-Term Municipal Income....... $88 5.39%
Intermediate Municipal Bond....... 29 5.72
Municipal Income.................. 97 5.41
California Municipal Bond......... 9 5.93
Florida Intermediate Municipal
Bond............................ 48 5.74
Florida Municipal Bond............ 9 5.78
Georgia Intermediate Municipal
Bond............................ 76 5.57
North Carolina Intermediate
Municipal Bond.................. 69 5.68
North Carolina Municipal Bond..... 27 6.13
South Carolina Intermediate
Municipal Bond.................. 28 5.94
South Carolina Municipal Bond..... 19 6.07
Tennessee Intermediate Municipal
Bond............................ 7 5.52
Texas Intermediate Municipal
Bond............................ 91 5.60
Texas Municipal Bond.............. 8 5.63
</TABLE>
The average amount outstanding was calculated based on daily balances in the
period.
The Trust and Reserves 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 has agreed to pay 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 period ended March 31, 2000, there were no borrowings by
the Funds under the committed line of credit.
7. CAPITAL LOSS CARRYFORWARD
At March 31, 2000, the following Funds had available for Federal income tax
purposes the following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2001 2002 2003 2004 2005 2006 2007 2008
FUND (000) (000) (000) (000) (000) (000) (000) (000)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Short-Term Municipal Income............................. -- -- -- $ 25 -- -- -- --
Intermediate Municipal Bond............................. -- -- -- -- -- -- -- $2,425
Municipal Income........................................ -- -- -- -- -- -- -- 1,402
California Municipal Bond............................... -- -- -- -- -- -- -- 1,074
Florida Intermediate Municipal Bond..................... -- -- -- 498 22 -- -- 717
Georgia Intermediate Municipal Bond..................... -- -- -- -- -- -- -- 516
Georgia Municipal Bond.................................. -- -- 189 -- -- -- -- 258
Maryland Intermediate Municipal Bond.................... -- -- -- -- -- -- -- 209
Maryland Municipal Bond................................. -- -- -- -- -- -- -- 149
North Carolina Intermediate Municipal Bond.............. -- -- -- -- -- -- -- 366
North Carolina Municipal Bond........................... -- 208 425 -- -- -- 207 --
South Carolina Intermediate Municipal Bond.............. -- -- -- -- -- -- -- 15
South Carolina Municipal Bond........................... -- -- -- -- -- 15 -- 112
Tennessee Intermediate Municipal Bond................... -- -- -- -- -- -- -- 315
Tennessee Municipal Bond................................ -- -- 25 -- -- -- -- 63
Texas Intermediate Municipal Bond....................... -- -- -- -- -- -- -- 1,036
Texas Municipal Bond.................................... -- 92 132 -- -- -- -- 83
Virginia Intermediate Municipal Bond.................... -- -- -- -- -- -- -- 232
Virginia Municipal Bond................................. -- 326 77 12 63 -- -- 139
</TABLE>
288
<PAGE> 293
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At March 31, 2000, the following Funds utilized capital losses during the year
as follows:
<TABLE>
<CAPTION>
CAPITAL
LOSSES
UTILIZED
FUND (000)
----------------------------------------------------------------------
<S> <C>
Short-Term Municipal Income................................. $119
North Carolina Municipal Bond............................... 27
Florida Municipal Bond...................................... 281
</TABLE>
Under the current tax law, capital 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 LOSS
DEFERRAL
FUND (000)
--------------------------------------------------------------------------
<S> <C>
Short Term Municipal Income................................. $ 214
Florida Intermediate Municipal Bond......................... 325
Georgia Intermediate Municipal Bond......................... 664
Georgia Municipal Bond...................................... 521
Maryland Intermediate Municipal Bond........................ 1,488
Maryland Municipal Bond..................................... 561
Municipal Income............................................ 4,788
North Carolina Intermediate Municipal Bond.................. 786
North Carolina Municipal Bond............................... 750
South Carolina Intermediate Municipal Bond.................. 69
South Carolina Municipal Bond............................... 460
Tennessee Intermediate Municipal Bond....................... 53
Texas Intermediate Municipal Bond........................... 2,486
Texas Municipal Bond........................................ 179
Virginia Intermediate Municipal Bond........................ 1,920
Virginia Municipal Bond..................................... 93
</TABLE>
8. REORGANIZATIONS
CONVERSION OF COMMON TRUST FUNDS
On June 19, 1998, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets of certain common trust funds, managed by NationsBank, N.A.,
also listed below (each an "Acquired Fund"), in a tax-free exchange for shares
of the Acquiring Fund. The number and value of shares issued by the Acquiring
Fund are presented in the Schedules of capital stock activity. Net assets and
unrealized appreciation as of the conversion date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER CONVERSION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Municipal NationsBank Common
Income Trust Municipal Bond
Fund $135,044 $516,163 $651,207 $10,717
Maryland Intermediate NationsBank Common
Municipal Bond Trust Intermediate
Municipal Bond Fund 93,840 107,066 200,906 4,791
</TABLE>
289
<PAGE> 294
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
On June 19, 1998, the Virginia Intermediate Municipal Bond Fund (the "Acquiring
Fund"), acquired the assets of the NationsBank Common Trust Virginia Municipal
Bond Fund (the "Acquired Fund"), managed by NationsBank, N.A., in a taxable
exchange for shares of the Acquiring Fund. The number and value of shares issued
by the Acquiring Fund are presented in the Schedules of capital stock activity.
Net assets as of the conversion date of the Acquired Fund and the Acquiring Fund
prior to conversion, and the Acquiring Fund immediately after the conversion,
were $4,781,000, $247,135,000 and $251,916,000, respectively.
ACQUISITION OF THE EMERALD FUNDS
On May 15, 1998, the Florida Municipal Bond Fund (the "Acquiring Fund"),
acquired the assets and certain liabilities of The Emerald Florida Tax-Exempt
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
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
(000) (000) (000) (000)
----------------------------------------------------------------------------------
<S> <C> <C> <C>
$118,966 $47,709 $166,675 $8,880
</TABLE>
ACQUISITION OF THE PACIFIC HORIZON FUNDS
On May 14, 1999, the Municipal Income Fund (the "Acquiring Fund"), acquired the
assets and liabilities of the Pacific Horizon National Municipal Bond 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
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
(000) (000) (000) (000)
----------------------------------------------------------------------------------
<S> <C> <C> <C>
$19,123 $664,545 $683,668 $621
</TABLE>
On May 21, 1999, the California Municipal Bond Fund, a newly established
portfolio, acquired the assets and liabilities of the Pacific Horizon California
Municipal Bond Fund pursuant to a plan of reorganization approved by its
shareholders. The acquisition was accomplished by a tax-free exchange of shares
of California Municipal Bond Fund in an amount equal to the value of the
outstanding shares of the Pacific Horizon California Municipal Bond Fund. The
financial statements of the California Municipal Bond Fund reflect the
historical financial results of the Pacific Horizon California Municipal Bond
Fund prior to the reorganization.
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS
---------------------------------------------------------------------
<S> <C>
California Municipal Bond Nations California Municipal Bond
A Shares Investor A Shares
B Shares Investor B Shares
</TABLE>
290
<PAGE> 295
NATIONS FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF NATIONS FUND TRUST
In our opinion, the accompanying statements of net assets, and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of the twenty municipal bond portfolios (constituting part of Nations Fund
Trust or Nations Institutional Reserves, hereafter referred to as the "Trust")
at March 31, 2000, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for each of the periods
indicated, in conformity with accounting principles generally accepted in the
United States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2000 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
New York, New York
May 19, 2000
291
<PAGE> 296
NATIONS FUNDS
TAX INFORMATION (UNAUDITED)
For the year ended March 31, 2000, all of the distributions made from net
investment income of the Nations Municipal Bond Funds are tax exempt for Federal
income tax purposes. A portion of the income may be subject to Federal
Alternative Minimum Tax. For the year ended March 31, 2000, the amount of
long-term capital gain distributions designated by the Trust is as follows:
<TABLE>
<CAPTION>
LONG-TERM
CAPITAL GAIN
DISTRIBUTION
FUND DESIGNATION
--------------------------------------------------------------------------
<S> <C>
Intermediate Municipal Bond................................. $1,403,832
Municipal Income Fund....................................... 784,809
California Municipal Bond................................... 767,012
Georgia Intermediate Municipal Bond......................... 190,425
Maryland Intermediate Municipal Bond........................ 87,653
Maryland Municipal Bond..................................... 20,143
North Carolina Intermediate Municipal Bond.................. 318,858
South Carolina Intermediate Municipal Bond.................. 370,538
Tennessee Intermediate Municipal Bond....................... 50,188
Texas Intermediate Municipal Bond........................... 87,460
Virginia Intermediate Municipal Bond........................ 15,726
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P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.321.7854
NATIONS FUNDS
MUNIAR (3/00)
