<PAGE> 1
NATIONS
FUND
EQUITY
FUNDS
Semi-Annual Report for Period Ended September 30, 1996
NATIONS
FUND
<PAGE> 2
<TABLE>
<S> <C>
NOT MAY LOSE VALUE
FDIC-
INSURED NO BANK GUARANTEE
</TABLE>
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS, INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, N.A., IS NOT A BANK AND SECURITIES OFFERED BY IT ARE NOT
GUARANTEED BY ANY BANK OR INSURED BY THE FDIC. STEPHENS INC., MEMBER NYSE-SIPC.
NATIONS FUND INVESTMENT ADVISER: NATIONSBANC ADVISORS, INC.
NATIONS FUND INVESTMENT SUB-ADVISERS: TRADESTREET INVESTMENT ASSOCIATES, INC.
AND GARTMORE GLOBAL PARTNERS.
<PAGE> 3
NATIONS FUND
DEAR SHAREHOLDER:
Financial assets, particularly U.S. equity securities, have continued to produce
solid returns through the first nine months of 1996. As we anticipated six
months ago, the returns have been less spectacular than in 1995 and have been
accompanied by greater volatility. After selling off sharply in the first part
of the year, taxable bonds have traded in a broad range for the past six months.
Meanwhile, municipal securities have enjoyed better total returns than their
taxable counterparts. International equity securities have produced positive
returns, although these equities have generally lagged their domestic
counterparts.
Throughout the current year, investors have had no lack of issues to worry about
- -- the level of economic activity, Federal Reserve Board (the "Fed") policies,
corporate profits, inflation and domestic politics. Despite the periodic
worries, none of these issues have manifested themselves into overwhelming
problems. The economy has neither accelerated at an unacceptable pace, nor
fallen into recession. The Fed's policies have been steady. Corporate profits
have not achieved 1995's strong gains, but have increased at a reasonable pace.
Inflation remains tame, despite strong job growth and low unemployment.
Moreover, the political season has done little to unsettle the markets. Despite
the election year, Congress produced a timely and sensible budget for fiscal
year 1997.
Outside the U.S. there is much less concern about economies overheating. In both
Europe and Japan, the focus has been on stimulating economic growth and, to this
end, governments have been following loose monetary policies. Provided earnings
continue their strong recovery in these regions, the environment for foreign
equity securities looks very encouraging. Pacific Rim economies have slowed this
year from the exceptionally strong growth over the past few years. Although the
region's slower growth in exports along with tighter monetary policies have had
a negative impact on certain markets, they also have reduced the overheating
inflationary problems which occurred across the region as a result of the
exceptional growth.
Looking ahead, there are strong prospects for a return to higher growth in Asia
next year as central banks begin to ease monetary policies and economic activity
picks up outside Asia, particularly in Europe and Japan. Unlike in the U.S.,
bond yields have actually fallen in many overseas markets and equity valuations
remain generally low in relation to bonds.
The final months of 1996 and the early part of 1997 are unlikely to bring
closure to any of the issues described above. Investors will continue to be edgy
about the prospects for the U.S. economy, inflation and profits. Moreover, we
will continue to hear strong opinions expressed on the future course of the Fed,
and the political landscape after the election. Despite all the worries and
rhetoric, we think the pattern of the last several years will continue to hold
true. Investor apprehension will, from time to time, lead to market volatility.
However, moderate economic growth, stable inflation and modest profits should,
in our view, produce a reasonable investment environment as we move into the new
year.
Sincerely,
/s/ A. Max Walker
- ----------------------------
A. Max Walker
President and Chairman
of the Board
September 30, 1996
1
<PAGE> 4
THE NATIONS FUND ADVANTAGE
A family of mutual funds provides investors with a number of advantages,
including the ability to shift investment assets among funds as their financial
objectives change. The Nations Fund family of mutual funds includes a broad
array of professionally managed domestic and international stock, bond and money
market funds advised by NationsBanc Advisors, Inc. The family is designed to
accommodate a wide variety of investment objectives across the risk/reward
spectrum.
[RISK/RETURN SPECTRUM* GRAPHIC]
For specific information on developing an investment portfolio that will more
closely target your investment objectives, contact your investment
representative or Nations Fund for fund brochures and prospectuses at (800)
982-2271.
- ---------------
* The Nations Fund family includes Nations Equity Index Fund, which seeks
investment results that correspond, before fees and expenses, to the total
return of the S&P 500 Index, and Nations Managed Index Fund, which seeks, over
the long-term to provide a total return which (gross of fees and expenses)
exceeds the total return of the S&P 500.
2
<PAGE> 5
NATIONS FUND
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 55.7%
APPAREL AND TEXTILES -- 0.6%
24,500 V.F. Corporation..................... $ 1,473,063
----------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 0.6%
45,600 Ford Motor Company................... 1,425,000
----------
AUTOMOBILE PARTS
MANUFACTURERS -- 2.6%
26,500 Eaton Corporation.................... 1,599,938
46,100 Echlin Inc. ......................... 1,446,388
34,700 Genuine Parts Company................ 1,518,125
46,350 Snap-On Inc. ........................ 1,488,994
----------
6,053,445
----------
BANKS -- 2.1%
16,700 Crestar Financial Corporation........ 985,300
23,400 First Chicago Corporation NBD........ 1,058,850
29,700 Fleet Financial Group Inc. .......... 1,321,650
21,900 Republic New York Corporation........ 1,513,837
----------
4,879,637
----------
BEVERAGES -- 0.6%
53,600 PepsiCo Inc. ........................ 1,514,200
----------
CHEMICALS -- BASIC -- 1.0%
42,300 Georgia Gulf Corporation............. 1,263,713
24,600 Mallinckrodt Group Inc. ............. 1,023,975
----------
2,287,688
----------
CHEMICALS -- SPECIALTY -- 1.4%
30,400 Great Lakes Chemical Corporation..... 1,732,800
84,300 Wellman Inc. ........................ 1,475,250
----------
3,208,050
----------
COMMUNICATION EQUIPMENT -- 0.6%
67,200 Glenayre Technologies Inc.+.......... 1,545,600
----------
COMPUTER RELATED -- 0.9%
26,500 Digital Equipment Corporation+....... 947,375
56,800 Silicon Graphics Inc.+............... 1,256,700
----------
2,204,075
----------
COMPUTER SOFTWARE -- 1.0%
62,500 Bay Networks Inc.+................... 1,703,125
8,500 Cabletron Systems Inc.+.............. 580,125
----------
2,283,250
----------
DIVERSIFIED -- 0.3%
86,400 Hanson, Plc, ADR..................... 1,069,200
----------
DRUGS -- 1.1%
18,400 Merck & Company Inc. ................ 1,294,900
20,600 Schering-Plough Corporation.......... 1,266,900
----------
2,561,800
----------
ELECTRIC POWER -- 5.2%
57,400 Baltimore Gas & Electric Company..... 1,499,575
34,700 Central & South West Corporation..... 902,200
58,700 DTE Energy Company................... 1,643,600
69,200 Houston Industries Inc. ............. 1,531,050
80,100 New York State Electric & Gas
Company............................ 1,762,200
52,300 Pacific Gas & Electric Company....... 1,137,525
74,600 PECO Energy Company.................. 1,771,750
76,900 Unicom Corporation................... 1,932,113
----------
12,180,013
----------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRICAL EQUIPMENT -- 0.6%
21,100 Grainger (W.W.) Inc. ................. $ 1,482,275
----------
ELECTRONICS -- 2.2%
36,100 AMP Inc. ............................. 1,398,875
20,400 Avnet, Inc. .......................... 989,400
15,200 Harris Corporation.................... 989,900
35,100 Motorola, Inc. ....................... 1,812,038
----------
5,190,213
----------
ENVIRONMENTAL -- 0.4%
39,600 Browning-Ferris Industries Inc. ...... 990,000
----------
FINANCIAL SERVICES -- 2.0%
30,400 Dean Witter, Discover & Company....... 1,672,000
13,800 Marsh & McLennan Companies Inc. ...... 1,340,325
22,800 Transamerica Corporation.............. 1,593,150
----------
4,605,475
----------
FOOD PRODUCERS -- 3.3%
44,200 Cadbury Schweppes, Plc, ADR........... 1,447,550
43,100 Heinz (H.J.) Company.................. 1,454,625
67,400 McCormick & Company................... 1,575,475
46,500 Quaker Oats Company................... 1,703,063
46,400 Sara Lee Corporation.................. 1,658,800
----------
7,839,513
----------
FOOD RETAILERS -- 1.2%
61,300 Supervalu Inc. ....................... 1,685,750
32,000 Sysco Corporation..................... 1,076,000
----------
2,761,750
----------
INSURANCE -- 2.1%
12,200 General Re Corporation................ 1,729,350
27,100 ITT Hartford Group Inc. .............. 1,598,900
35,500 Lincoln National Corporation Ltd. .... 1,557,562
----------
4,885,812
----------
MACHINERY AND EQUIPMENT -- 1.2%
23,300 Foster Wheeler Corporation............ 1,019,375
43,900 Keystone International, Inc. ......... 861,538
22,000 Parker-Hannifin Corporation........... 924,000
----------
2,804,913
----------
MEDIA -- 1.1%
97,800 Tele-Communications Inc., Class A..... 1,460,888
27,700 Time Warner Inc. ..................... 1,069,913
----------
2,530,801
----------
MEDICAL PRODUCTS AND SUPPLIES -- 0.9%
21,600 Abbott Laboratories................... 1,063,800
31,300 Bausch & Lomb Inc. ................... 1,150,275
----------
2,214,075
----------
MEDICAL SERVICES -- 0.7%
79,900 Humana Inc.+.......................... 1,617,975
----------
METALS AND MINING -- 2.0%
81,500 Cyprus Amax Minerals Company.......... 1,752,250
24,300 Phelps Dodge Corporation.............. 1,558,238
26,100 Reynolds Metals Company............... 1,334,363
----------
4,644,851
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 6
NATIONS FUND
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
OIL -- DOMESTIC -- 3.5%
22,800 Amoco Corporation.................... $ 1,604,550
33,400 Ashland Oil, Inc. ................... 1,327,650
13,200 Atlantic Richfield Company........... 1,683,000
34,300 Diamond Shamrock Inc. ............... 1,067,588
60,800 Occidental Petroleum Corporation..... 1,421,200
48,900 Sun Company, Inc. ................... 1,124,700
----------
8,228,688
----------
OIL -- INTERNATIONAL -- 2.3%
38,300 Elf Aquitaine, ADR................... 1,508,063
9,500 Exxon Corporation.................... 790,875
11,700 Mobil Corporation.................... 1,354,275
53,000 Repsol S.A., ADR..................... 1,755,625
----------
5,408,838
----------
PRINTING AND PUBLISHING -- 1.2%
37,900 Dow Jones & Company Inc. ............ 1,402,300
23,100 Dun & Bradstreet Corporation......... 1,377,338
----------
2,779,638
----------
RECREATION -- 1.3%
41,200 Circus Circus Enterprises Inc.+...... 1,457,450
24,500 Disney (Walt) Company................ 1,552,688
----------
3,010,138
----------
RESTAURANTS AND LODGING -- 1.2%
34,900 ITT Corporation...................... 1,522,513
56,000 Wendy's International Inc. .......... 1,204,000
----------
2,726,513
----------
RETAIL -- GENERAL -- 0.6%
43,300 Dayton Hudson Corporation............ 1,428,900
----------
RETAIL -- SPECIALTY -- 0.6%
34,100 Tandy Corporation.................... 1,376,788
----------
STEEL -- 0.8%
39,000 Nucor Corporation.................... 1,979,250
----------
TELECOMMUNICATIONS -- 0.7%
66,000 360 (Degrees) Communications
Company+........................... 1,551,000
----------
TRANSPORTATION -- AIRLINES -- 0.6%
59,900 Southwest Airlines Company........... 1,370,213
----------
UTILITIES -- NATURAL GAS -- 1.9%
38,100 British Gas, Plc, ADR................ 1,204,913
54,300 Brooklyn Union Gas Company........... 1,513,613
60,600 Equitable Resources Inc. ............ 1,727,100
----------
4,445,626
----------
UTILITIES -- TELEPHONE -- 5.3%
58,700 AirTouch Communications, Inc.+....... 1,621,588
28,100 Ameritech Corporation................ 1,478,763
21,500 Bell Atlantic Corporation............ 1,287,313
45,000 GTE Corporation...................... 1,732,500
79,000 MCI Communications Corporation....... 2,024,375
16,200 NYNEX Corporation.................... 704,700
32,900 SBC Communications Inc. ............. 1,583,313
65,100 U.S. West Inc. ...................... 1,936,725
----------
12,369,277
----------
TOTAL COMMON STOCKS
(Cost $130,846,852)................ 130,927,543
===========
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
ASSET-BACKED SECURITIES -- 1.6%
$ 565,000 Chase Manhattan Credit Card,
Series 1996-4A,
6.730% 02/15/03................. $ 568,174
193,587 Chase Manhattan Grantor Trust,
Series 1996-A,
5.200% 04/15/02................. 190,802
1,000,000 EQCC, Home Equity Loan,
Series 1996-2,
6.700% 09/15/08................. 997,175
800,000 Ford Credit Auto Loan Master
Trust, Series 1996-1, Class A,
5.500% 02/15/01................. 762,496
400,000 Goldman Sachs, Grantor Notes,
6.200% 02/15/01++............... 390,356
825,000 Prime Credit Card Master Trust,
Series 1992-2, Class B2,
7.950% 11/15/02................. 853,875
--------------
TOTAL ASSET-BACKED SECURITIES
(Cost $3,803,973)............... 3,762,878
==============
CORPORATE BONDS AND NOTES -- 10.0%
AUTOMOTIVE -- 2.2%
Ford Motor Credit
Company, MTN:
1,000,000 7.450% 07/12/99................... 1,019,950
750,000 6.060% 12/27/00................... 727,357
1,250,000 General Motors Acceptance
Corporation, MTN,
6.250% 10/18/99................. 1,233,962
1,250,000 Olympic Auto Receivables,
Series 1996-A,
5.850% 07/15/01................. 1,233,200
1,000,000 Olympic Auto Receivables Trust,
TBA,
6.800% 03/15/02................. 1,005,940
--------------
5,220,409
--------------
BANKING AND FINANCE -- 4.7%
1,050,000 ADVANTA Corporation, MTN,
7.075% 09/15/99................. 1,055,397
1,250,000 Ahmanson and Company, MTN,
6.530% 06/01/98................. 1,247,012
800,000 Bankers Trust New York, Sub.
Notes,
8.250% 05/01/05................. 839,176
350,000 BanPonce Corporation, MTN,
6.560% 04/22/99................. 348,690
585,000 Bear Stearns Company, Senior
Notes,
6.700% 08/01/03................. 574,903
1,000,000 Beneficial Corporation, MTN,
8.100% 11/23/98................. 1,029,750
1,000,000 Capital One Bank, Senior Notes,
7.200% 07/19/99................. 1,005,100
1,000,000 International Lease Finance
Corporation, MTN,
6.270% 02/10/99................. 995,210
500,000 MBIA Inc., Deb.,
7.000% 12/15/25................. 463,380
850,000 MBNA American Bank, MTN,
7.710% 06/17/04................. 870,596
825,000 Paine Webber Group,
8.250% 05/01/02................. 859,568
500,000 Salomon Brothers, MTN,
6.790% 02/27/98................. 502,855
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 7
NATIONS FUND
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
CORPORATE BONDS AND NOTES -- (CONTINUED)
BANKING AND FINANCE -- (CONTINUED)
$ 1,250,000 Union Planters Corporation,
Sub. Notes,
6.750% 11/01/05................. $ 1,188,563
--------------
10,980,200
--------------
INDUSTRIAL -- 2.3%
530,000 Auburn Hills Trust, Deb.,
12.000% 05/01/20................ 774,652
500,000 McDonnell Douglas Corporation,
Deb.,
9.750% 04/01/12................. 595,480
1,500,000 News America Holdings, Inc., Sr.
Note,
8.625% 02/01/03................. 1,599,420
1,000,000 Sears Roebuck Acceptance
Corporation, MTN,
6.690% 04/30/01................. 992,020
500,000 Tele-communications Inc., Deb.,
7.875% 02/15/26................. 435,365
1,050,000 Time Warner, Inc.,
7.450% 02/01/98................. 1,061,330
--------------
5,458,267
--------------
RECREATION -- 0.4%
850,000 Disney (Walt) Company,
Global Bonds,
6.750% 03/30/06................. 824,857
--------------
TRANSPORTATION -- AIRLINES -- 0.4%
1,000,000 Qantas Airways Ltd., Sr. Note,
6.625% 06/30/98 ++.............. 996,610
--------------
TOTAL CORPORATE
BONDS AND NOTES
(Cost $23,565,857).............. 23,480,343
==============
FOREIGN BONDS -- 0.8%
1,000,000 Hydro-Quebec,
9.000% 03/07/01................. 1,071,570
750,000 Skandia Capital,
6.000% 11/02/98................. 741,030
--------------
TOTAL FOREIGN BONDS
(Cost $1,818,956)............... 1,812,600
==============
GOVERNMENT AGENCY -- 0.2%
(Cost $600,436)
600,000 Tennessee Valley Authority,
5.980% 04/01/36................. 602,514
==============
MORTGAGE-BACKED SECURITIES -- 10.5%
FEDERAL HOME LOAN MORTGAGE
CORPORATION (FHLMC)
CERTIFICATES -- 1.8%
GOLD:
2,457,143 6.500% 08/01/10................... 2,398,785
1,936,566 7.000% 08/01/11................... 1,915,981
--------------
4,314,766
--------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) CERTIFICATES -- 6.7%
$ 1,950,000 7.180% 10/01/03................... $ 1,950,000
897,010 7.000% 06/01/11 (1 Pool).......... 886,630
1,052,446 9.000% 08/01/24 (1 Pool).......... 1,098,164
1,643,627 7.500% 09/01/25 (1 Pool).......... 1,627,454
1,439,412 8.000% 09/15/25 (1 Pool).......... 1,459,203
2,464,113 7.000% 04/01/26 (1 Pool).......... 2,377,080
3,074,053 6.500% 04/01/26 -- 05/01/26
(2 Pools)..................... 2,886,720
3,409,665 8.500% 06/01/26 -- 07/01/26
(2 Pools)..................... 3,497,021
--------------
15,782,272
--------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA) CERTIFICATES -- 2.0%
2,353,218 8.000% 06/15/22 -- 07/15/25
(2 Pools)..................... 2,386,305
1,102,870 9.500% 02/15/25 (1 Pool).......... 1,182,132
980,111 8.500% 02/15/26 (1 Pool).......... 1,007,975
--------------
4,576,412
--------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $24,597,756).............. 24,673,450
==============
CERTIFICATE OF DEPOSIT -- (YANKEE) -- 0.3%
(Cost $760,170)
750,000 Sun Canada Financial Company,
6.625% 12/15/07++............... 703,058
==============
U. S. TREASURY SECURITIES -- 13.1%
U.S. TREASURY BONDS -- 4.2%
3,215,000 8.750% 08/15/20................... 3,831,378
2,495,000 6.250% 08/15/23................... 2,254,457
4,375,000 6.000% 02/15/26................... 3,844,531
--------------
9,930,366
--------------
U.S. TREASURY NOTES -- 8.9%
6,450,000 6.000% 05/31/98................... 6,443,936
1,000,000 6.875% 08/31/99................... 1,015,310
250,000 6.875% 03/31/00................... 253,945
4,460,000 5.625% 11/30/00................... 4,330,392
600,000 6.625% 06/30/01................... 603,653
2,975,000 6.250% 02/15/03................... 2,927,579
1,375,000 5.875% 11/15/05................... 1,298,949
3,960,000 7.000% 07/15/06................... 4,042,289
--------------
20,916,053
--------------
TOTAL U.S. TREASURY
SECURITIES
(Cost $28,370,350).............. 30,846,419
==============
TOTAL SECURITIES
(Cost $214,364,350 )............ 216,808,805
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 8
NATIONS FUND
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C> <C>
------------------------------------------------------------
REPURCHASE AGREEMENT -- 8.0%
(Cost $18,776,000)
$18,776,000 Agreement with Smith Barney,
5.680% dated 09/30/96, to be
repurchased at $18,778,962 on
10/01/96, collateralized by:
$19,153,477 U.S. Government
Agency Securities,
4.730% -- 9.375% due
12/23/96 -- 07/15/43............ $ 18,776,000
============
TOTAL INVESTMENTS
(Cost $233,140,350*)................. 100.2% 235,584,805
OTHER ASSETS AND
LIABILITIES (NET).................... (0.2) (508,398)
----- ------------
NET ASSETS............................. 100.0% $235,076,407
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
++ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration to qualified institutional purchasers.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
GOLD Payments are on an accelerated 45-day payment cycle
instead of 75-day cycle
MTN Medium Term Note
TBA To Be Announced
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 9
NATIONS FUND
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 70.1%
AEROSPACE AND DEFENSE -- 0.4%
25,100 Raytheon Company................. $ 1,396,187
-----------
APPAREL AND TEXTILES -- 0.8%
46,600 V.F. Corporation................. 2,801,825
-----------
AUTOMOBILE PARTS MANUFACTURERS -- 2.8%
150,600 Cooper Tire & Rubber Company..... 3,256,725
77,100 Echlin Inc. ..................... 2,419,013
111,900 Genuine Parts Company............ 4,895,625
-----------
10,571,363
-----------
BANKS -- 3.2%
30,500 Chase Manhattan Corporation...... 2,443,813
56,600 CoreStates Financial
Corporation.................... 2,447,950
117,100 Fleet Financial Group Inc. ...... 5,210,950
32,400 Mellon Bank Corporation.......... 1,919,700
-----------
12,022,413
-----------
BEVERAGES -- 1.1%
144,000 PepsiCo Inc. .................... 4,068,000
-----------
CHEMICALS -- BASIC -- 1.4%
40,500 Imperial Chemical Industries,
Plc, ADR....................... 2,136,375
105,400 Lubrizol Corporation............. 3,030,250
-----------
5,166,625
-----------
COMMUNICATION EQUIPMENT -- 0.4%
34,900 Nokia Corporation, Class A,
ADR............................ 1,544,325
-----------
COMPUTER RELATED -- 0.8%
23,700 International Business Machines
Corporation.................... 2,950,650
-----------
COMPUTER SOFTWARE -- 1.4%
206,300 Autodesk, Inc. .................. 5,338,013
-----------
CONTAINERS -- 0.8%
63,600 Crown Cork & Seal Inc. .......... 2,933,550
-----------
DIVERSIFIED -- 2.6%
359,000 Hanson, Plc, ADR................. 4,442,625
2,980 Imation Corporation+............. 73,010
29,800 Minnesota Mining &
Manufacturing Company.......... 2,082,275
60,000 Tenneco Inc. .................... 3,007,500
-----------
9,605,410
-----------
DRUGS -- 0.7%
17,755 Bristol-Myers Squibb Company..... 1,711,138
24,900 Glaxo Wellcome Plc, ADR.......... 775,012
-----------
2,486,150
-----------
ELECTRIC POWER -- 5.6%
131,400 Baltimore Gas & Electric
Company........................ 3,432,825
149,700 Central & South West
Corporation.................... 3,892,200
117,100 CINergy Corporation.............. 3,615,462
95,900 New York State Electric &
Gas Company.................... 2,109,800
108,300 PacifiCorp....................... 2,233,688
239,600 PECO Energy Company.............. 5,690,500
-----------
20,974,475
-----------
ELECTRONICS -- 3.5%
121,900 AMP Inc. ........................ 4,723,625
79,006 Avnet, Inc. ..................... 3,831,791
58,400 Harris Corporation............... 3,803,300
15,400 Motorola, Inc. .................. 795,025
-----------
13,153,741
-----------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ENVIRONMENTAL -- 0.5%
80,300 Browning-Ferris Industries
Inc. .......................... $ 2,007,500
-----------
FINANCIAL SERVICES -- 0.9%
15,800 American General Corporation..... 596,450
29,000 Marsh & McLennan
Companies Inc. ................ 2,816,625
-----------
3,413,075
-----------
FOOD PRODUCERS -- 6.4%
80,300 Chiquita Brands International
Inc. .......................... 983,675
27,300 CPC International Inc. .......... 2,044,088
131,000 Dean Foods Company Inc. ......... 3,700,750
37,100 General Mills Inc. .............. 2,239,912
247,000 McCormick & Company.............. 5,773,625
130,700 Nabisco Holdings Corporation,
Class A........................ 4,133,387
73,900 Quaker Oats Company.............. 2,706,588
22,400 Ralston-Purina Group............. 1,534,400
5,700 Unilever N.V., ADR............... 898,462
-----------
24,014,887
-----------
FOOD RETAILERS -- 1.5%
199,800 Supervalu Inc. .................. 5,494,500
-----------
INSURANCE -- 5.3%
38,000 General Re Corporation........... 5,386,500
87,200 ITT Hartford Group Inc. ......... 5,144,800
68,300 Lincoln National Corporation
Ltd. .......................... 2,996,663
108,000 St. Paul Companies Inc. ......... 5,994,000
-----------
19,521,963
-----------
MACHINERY AND EQUIPMENT -- 4.1%
93,000 Briggs & Stratton Corporation.... 4,126,875
21,300 Dover Corporation................ 1,017,075
35,100 Foster Wheeler Corporation....... 1,535,625
239,000 Keystone International, Inc. .... 4,690,375
116,100 Trinity Industries Inc. ......... 3,874,837
-----------
15,244,787
-----------
MEDICAL PRODUCTS AND SUPPLIES -- 3.0%
114,400 Bausch & Lomb Inc. .............. 4,204,200
44,400 Becton, Dickinson & Company...... 1,964,700
118,000 Mallinckrodt Group Inc. ......... 4,911,750
-----------
11,080,650
-----------
METALS AND MINING -- 1.4%
186,200 Cyprus Amax Minerals Company..... 4,003,300
16,000 Phelps Dodge Corporation......... 1,026,000
-----------
5,029,300
-----------
OFFICE EQUIPMENT -- 0.8%
53,400 Pitney Bowes Inc. ............... 2,810,175
-----------
OIL -- DOMESTIC -- 3.7%
88,600 Ashland Oil, Inc. ............... 3,521,850
137,100 Occidental Petroleum
Corporation.................... 3,204,712
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 10
NATIONS FUND
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
OIL -- DOMESTIC -- (CONTINUED)
226,875 Sun Company, Inc. ............... $ 5,218,125
86,200 USX-Marathon Group............... 1,864,075
-----------
13,808,762
-----------
OIL -- INTERNATIONAL -- 2.7%
46,380 Exxon Corporation................ 3,861,135
31,300 Mobil Corporation................ 3,622,975
16,300 Royal Dutch Petroleum
Company, ADR................... 2,544,837
-----------
10,028,947
-----------
OIL SERVICES -- 1.1%
141,700 Dresser Industries, Inc. ........ 4,215,575
-----------
PAPER AND FOREST PRODUCTS -- 0.9%
90,780 Potlatch Corporation............. 3,517,725
-----------
PRINTING AND PUBLISHING -- 0.8%
49,400 Dun & Bradstreet Corporation..... 2,945,475
-----------
PROFESSIONAL SERVICES -- 0.6%
73,000 Block (H&R) Inc. ................ 2,171,750
-----------
RETAIL -- GENERAL -- 1.2%
89,200 May Department Stores Company.... 4,337,350
-----------
UTILITIES -- NATURAL GAS -- 1.8%
110,400 Brooklyn Union Gas Company....... 3,077,400
21,500 Consolidated Natural Gas
Company........................ 1,152,938
92,300 Equitable Resources Inc. ........ 2,630,550
-----------
6,860,888
-----------
UTILITIES -- TELEPHONE -- 7.9%
61,600 Ameritech Corporation............ 3,241,700
42,300 AT&T Corporation................. 2,210,175
35,300 Bell Atlantic Corporation........ 2,113,587
76,000 BellSouth Corporation............ 2,812,000
16,700 British Telecommunications,
Plc, ADR....................... 933,112
135,300 Frontier Corporation............. 3,602,363
112,700 GTE Corporation.................. 4,338,950
49,000 NYNEX Corporation................ 2,131,500
103,000 SBC Communications Inc. ......... 4,956,875
43,100 Sprint Corporation............... 1,675,512
50,700 U.S. West Inc. .................. 1,508,325
-----------
29,524,099
-----------
TOTAL COMMON STOCKS
(Cost $238,003,450).......... 261,040,135
===========
CONVERTIBLE PREFERRED STOCKS -- 1.3%
(Cost $4,535,000)
FOOD PRODUCERS -- 1.3%
90,700 Chiquita Brands International
Inc., Conv., Series B.......... 4,716,400
===========
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
CONVERTIBLE BONDS AND NOTES -- 8.2%
AIRLINES -- 0.3%
$ 1,100,000 Airborne Freight, Conv. Note,
6.750% 08/15/01................ $ 1,072,500
-----------
HEALTH CARE -- 0.5%
1,933,000 Ivax Corporation, Conv. Note,
6.500% 11/15/11................ 1,730,035
-----------
OIL -- DOMESTIC -- 2.8%
10,975,000 USX-Marathon Group,
Conv. Sub. Deb.,
7.000% 06/15/17................ 10,398,813
-----------
RETAIL -- GENERAL -- 0.3%
1,341,000 Costco Wholesale Corporation,
Conv. Note,
5.750% 05/15/02................ 1,243,778
-----------
OTHER -- 4.3%
6,175,000 General Signal Corporation,
Conv. Sub. Note,
5.750% 06/01/02................ 6,985,469
5,300,000 Integrated Health Services,
Conv. Sub. Deb.,
5.750% 01/01/01................ 5,134,375
3,500,000 Unisys Corporation, Conv. Sub.
Note, 8.250% 03/15/06.......... 3,885,000
-----------
16,004,844
-----------
TOTAL CONVERTIBLE BONDS AND NOTES
(Cost $29,151,982)............. 30,449,970
===========
U.S. TREASURY SECURITIES -- 14.1%
U.S. TREASURY BOND -- 12.8%
51,550,000 5.625% 02/15/06.................. 47,852,834
-----------
U.S. TREASURY NOTE -- 1.3%
4,950,000 5.625% 02/28/01.................. 4,796,848
-----------
TOTAL U.S. TREASURY SECURITIES
(Cost $53,077,856)............. 52,649,682
===========
TOTAL SECURITIES
(Cost $324,768,288)............ 348,856,187
===========
REPURCHASE AGREEMENT -- 5.4%
(Cost $20,290,000)
20,290,000 Agreement with Smith Barney,
5.680% dated 09/30/96, to be
repurchased at $20,293,201 on
10/01/96, collateralized by:
$20,697,914 U.S. Government
Agency Securities,
4.730% -- 9.375% due
12/23/96 -- 07/15/43........... 20,290,000
===========
TOTAL INVESTMENTS
(Cost $345,058,288*)................... 99.1% 369,146,187
OTHER ASSETS AND
LIABILITIES (NET)...................... 0.9 3,334,879
----- ------------
NET ASSETS............................... 100.0% $372,481,066
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 11
NATIONS FUND
Nations Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 95.5%
AEROSPACE AND DEFENSE -- 3.7%
259,350 Lockheed Martin Corporation........ $ 23,373,918
444,800 Raytheon Company................... 24,742,000
--------------
48,115,918
--------------
APPAREL AND TEXTILES -- 0.2%
88,000 Liz Claiborne Inc. ................ 3,278,000
--------------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 2.4%
825,200 Ford Motor Company................. 25,787,500
225,200 ITT Industries Inc. ............... 5,432,950
--------------
31,220,450
--------------
AUTOMOBILE PARTS MANUFACTURERS -- 1.9%
306,800 Echlin Inc. ....................... 9,625,850
317,000 Goodyear Tire & Rubber Company..... 14,621,625
--------------
24,247,475
--------------
BANKS -- 6.8%
344,700 Bank of Boston Corporation......... 19,949,513
562,000 Bank of New York Inc. ............. 16,508,750
324,700 Chase Manhattan Corporation........ 26,016,588
120,000 Citicorp........................... 10,875,000
251,000 Mellon Bank Corporation............ 14,871,750
--------------
88,221,601
--------------
BEVERAGES -- 1.1%
529,400 PepsiCo Inc. ...................... 14,955,550
--------------
CHEMICALS -- BASIC -- 2.2%
389,000 Mallinckrodt Group Inc. ........... 16,192,125
192,000 Rohm & Haas Company................ 12,576,000
--------------
28,768,125
--------------
CHEMICALS -- SPECIALTY -- 1.3%
412,000 Morton International Inc.,
Industries....................... 16,377,000
--------------
COAL, GAS AND PIPELINE -- 1.9%
590,400 Coastal Corporation................ 24,354,000
--------------
COMPUTER RELATED -- 3.6%
282,000 COMPAQ Computer Corporation+....... 18,083,250
89,200 Digital Equipment Corporation+..... 3,188,900
55,600 International Business Machines
Corporation...................... 6,922,200
291,600 Sun Microsystems Inc.+............. 18,115,650
--------------
46,310,000
--------------
CONTAINERS -- 3.0%
400,000 Crown Cork & Seal Inc. ............ 18,450,000
423,000 Tupperware Corporation............. 20,727,000
--------------
39,177,000
--------------
DIVERSIFIED -- 3.1%
316,800 AlliedSignal Inc. ................. 20,869,200
495,000 Hanson, Plc, ADR................... 6,125,625
150,000 Tenneco Inc. ...................... 7,518,750
387,000 Viad Corporation................... 5,418,000
--------------
39,931,575
--------------
DRUGS -- 5.3%
329,500 Bristol-Myers Squibb Company....... 31,755,562
139,000 Rhone-Poulenc Rorer, Inc. ......... 10,233,875
428,000 Schering-Plough Corporation........ 26,322,000
--------------
68,311,437
--------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRIC POWER -- 4.7%
370,000 Baltimore Gas & Electric Company... $ 9,666,250
555,061 CINergy Corporation................ 17,137,508
555,000 DPL Inc. .......................... 12,973,125
205,000 General Public Utilities
Corporation...................... 6,303,750
667,000 New York State Electric & Gas
Company.......................... 14,674,000
--------------
60,754,633
--------------
ELECTRICAL EQUIPMENT -- 1.2%
176,000 General Electric Company........... 16,016,000
--------------
ELECTRONICS -- 2.1%
420,000 Harris Corporation................. 27,352,500
--------------
FINANCIAL SERVICES -- 1.5%
229,845 Bear Stearns Companies Inc. ....... 5,343,896
150,000 Dean Witter, Discover & Company.... 8,250,000
252,000 Paine Webber Group, Inc. .......... 5,292,000
--------------
18,885,896
--------------
FOOD PRODUCERS -- 2.4%
328,000 Nabisco Holdings Corporation,
Class A.......................... 10,373,000
551,600 Quaker Oats Company................ 20,202,350
--------------
30,575,350
--------------
FOOD RETAILERS -- 1.1%
326,600 Safeway Inc.+...................... 13,921,325
--------------
HOUSEHOLD PRODUCTS -- 2.1%
1,036,200 First Brands Corporation........... 27,070,725
--------------
INDUSTRIAL CONGLOMERATES -- 0.5%
350,000 Premark International Inc. ........ 6,606,250
--------------
INSURANCE -- 6.6%
217,900 CIGNA Corporation.................. 26,120,762
154,700 General Re Corporation............. 21,928,725
352,200 ITT Hartford Group Inc. ........... 20,779,800
374,700 Lincoln National Corporation
Ltd. ............................ 16,439,963
--------------
85,269,250
--------------
MEDICAL PRODUCTS AND SUPPLIES -- 1.7%
122,000 Baxter International Inc. ......... 5,703,500
358,200 Becton, Dickinson & Company........ 15,850,350
--------------
21,553,850
--------------
MEDICAL SERVICES -- 1.6%
644,000 Humana Inc.+....................... 13,041,000
342,067 MedPartners/Mullikin Inc.+......... 7,782,024
--------------
20,823,024
--------------
METALS AND MINING -- 1.3%
239,500 ASARCO Inc. ....................... 6,376,688
204,400 Reynolds Metals Company............ 10,449,950
--------------
16,826,638
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 12
NATIONS FUND
Nations Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
OFFICE EQUIPMENT -- 2.4%
569,400 Xerox Corporation.................. $ 30,534,075
--------------
OIL -- DOMESTIC -- 2.7%
193,000 Amoco Corporation.................. 13,582,375
510,000 Phillips Petroleum Company......... 21,802,500
--------------
35,384,875
--------------
OIL -- INTERNATIONAL -- 5.2%
154,000 British Petroleum Company, ADS..... 19,250,000
209,800 Exxon Corporation.................. 17,465,850
261,300 Mobil Corporation.................. 30,245,475
--------------
66,961,325
--------------
OIL SERVICES -- 0.7%
109,200 Schlumberger Ltd. ................. 9,227,400
--------------
PAPER AND FOREST PRODUCTS -- 1.1%
243,900 Mead Corporation................... 14,298,638
--------------
PHOTO AND OPTICAL -- 0.8%
232,500 Polaroid Corporation............... 10,230,000
--------------
PRINTING AND PUBLISHING -- 0.2%
131,300 World Color Press, Inc.+........... 2,921,425
--------------
RECREATION -- 1.1%
553,125 Mattel, Inc. ...................... 14,312,109
--------------
RETAIL -- GENERAL -- 2.2%
421,700 Federated Department Stores
Inc.+............................ 14,074,238
292,000 May Department Stores Company...... 14,198,500
--------------
28,272,738
--------------
RETAIL -- SPECIALTY -- 0.2%
125,097 Limited Inc. ...................... 2,392,480
--------------
SEMICONDUCTORS -- 2.1%
292,400 Intel Corporation.................. 27,905,925
--------------
TELECOMMUNICATIONS -- 0.2%
60,700 Lucent Technologies................ 2,784,613
--------------
TOBACCO -- 2.1%
302,000 Philip Morris Companies Inc. ...... 27,104,500
--------------
TRANSPORTATION -- AIRLINES -- 1.7%
306,000 Delta Air Lines, Inc. ............. 22,032,000
--------------
TRANSPORTATION -- RAILROADS -- 1.3%
194,000 Burlington Northern Santa Fe
Inc. ............................ 16,368,750
--------------
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
UTILITIES -- NATURAL GAS -- 1.7%
140,000 Consolidated Natural Gas Company... $ 7,507,500
291,000 Williams Companies Inc. ........... 14,841,000
--------------
22,348,500
--------------
UTILITIES -- TELEPHONE -- 4.6%
200,000 AT&T Corporation................... 10,450,000
540,000 BellSouth Corporation.............. 19,980,000
514,500 GTE Corporation.................... 19,808,250
209,000 SBC Communications Inc. ........... 10,058,125
--------------
60,296,375
--------------
OTHER -- 1.9%
432,100 Rockwell International
Corporation...................... 24,359,637
--------------
TOTAL COMMON STOCKS
(Cost $1,006,245,243)............ 1,236,658,937
==============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 4.8%
(Cost $61,433,000)
$61,433,000 Agreement with Smith Barney,
5.680% dated 09/30/96, to be
repurchased at $61,442,693 on
10/01/96, collateralized by:
$62,668,062 U.S. Government
Agency Securities,
4.730% -- 9.375%
due 12/23/96 -- 07/15/43....... 61,433,000
==============
TOTAL INVESTMENTS
(Cost $1,067,678,243*).............. 100.3% 1,298,091,937
OTHER ASSETS AND
LIABILITIES (NET)................... (0.3) (3,763,373)
----- --------------
NET ASSETS............................ 100.0% $1,294,328,564
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
ADS American Depositary Share
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 13
NATIONS FUND
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 99.0%
AEROSPACE AND DEFENSE -- 2.0%
29,200 Boeing Company.................... $ 2,759,400
3,900 EG&G Inc. ........................ 69,712
5,200 General Dynamics Corporation...... 358,150
17,000 Lockheed Martin Corporation....... 1,532,125
18,700 McDonnell Douglas Corporation..... 981,750
4,700 Northrop Grumman Corporation...... 377,175
21,000 Raytheon Company.................. 1,168,125
5,600 TRW Inc. ......................... 520,800
10,600 United Technologies Corporation... 1,273,325
------------
9,040,562
------------
APPAREL AND TEXTILES -- 0.6%
6,600 Fruit of the Loom Inc., Class
A+.............................. 204,600
7,000 Liz Claiborne Inc. ............... 260,750
4,500 National Service Industries
Inc. ........................... 157,500
12,400 Nike Inc., Class B................ 1,506,600
5,800 Reebok International, Ltd. ....... 201,550
3,300 Russell Corporation............... 106,425
1,400 Springs Industries Inc. .......... 62,300
4,100 Stride Rite Corporation........... 36,900
5,400 V.F. Corporation.................. 324,675
------------
2,861,300
------------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 1.9%
63,700 Chrysler Corporation.............. 1,823,412
100,400 Ford Motor Company................ 3,137,500
64,800 General Motors Corporation........ 3,110,400
9,900 ITT Industries Inc. .............. 238,838
6,400 Navistar International
Corporation+.................... 54,400
3,400 PACCAR, Inc. ..................... 186,150
------------
8,550,700
------------
AUTOMOBILE PARTS MANUFACTURERS -- 0.5%
7,400 Cooper Tire & Rubber Company...... 160,025
8,900 Dana Corporation.................. 269,225
7,000 Eaton Corporation................. 422,625
5,200 Echlin Inc. ...................... 163,150
10,400 Genuine Parts Company............. 455,000
13,200 Goodyear Tire & Rubber Company.... 608,850
5,350 Snap-On Inc. ..................... 171,869
------------
2,250,744
------------
BANKS -- 7.4%
40,100 Banc One Corporation.............. 1,644,100
34,000 BankAmerica Corporation........... 2,792,250
15,600 Bank of Boston Corporation........ 902,850
35,100 Bank of New York Inc. ............ 1,031,062
6,700 Bankers Trust N.Y. Corporation.... 526,787
18,000 Barnett Banks Inc. ............... 607,500
12,700 Boatmen's Bancshares Inc. ........ 709,612
39,200 Chase Manhattan Corporation....... 3,140,900
44,100 Citicorp.......................... 3,996,562
13,500 Comerica Inc. .................... 695,250
19,500 CoreStates Financial
Corporation..................... 843,375
9,300 Fifth Third Bancorp............... 540,562
12,300 First Bank System, Inc. .......... 822,562
30,300 First Chicago Corporation NBD..... 1,371,075
26,000 First Union Corporation........... 1,735,500
22,100 Fleet Financial Group Inc. ....... 983,450
20,300 KeyCorp (New)..................... 893,200
13,000 Mellon Bank Corporation........... 770,250
17,400 Morgan (J.P.) & Company Inc. ..... 1,546,425
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
BANKS -- (CONTINUED)
22,000 National City Corporation......... $ 926,750
33,300 Norwest Corporation............... 1,361,138
29,500 PNC Bank Corporation.............. 984,563
6,200 Republic New York Corporation..... 428,575
21,000 SunTrust Banks Inc. .............. 861,000
14,000 U.S. Bancorp...................... 553,000
14,700 Wachovia Corporation.............. 727,650
8,000 Wells Fargo & Company............. 2,080,000
------------
33,475,948
------------
BEVERAGES -- 4.0%
43,800 Anheuser-Busch Companies, Inc. ... 1,647,975
5,700 Brown-Forman Corporation, Class
B............................... 223,012
214,000 Coca-Cola Company................. 10,887,250
3,400 Coors (Adolph) Company, Class B... 74,587
135,500 PepsiCo Inc. ..................... 3,827,875
32,400 Seagram Company, Ltd. ............ 1,210,950
------------
17,871,649
------------
BIO SPECIALTY PHARMACEUTICALS -- 0.3%
22,800 Amgen Inc.+....................... 1,439,250
------------
CHEMICALS -- BASIC -- 2.9%
8,600 Air Products & Chemicals Inc. .... 500,950
21,600 Dow Chemical Company.............. 1,733,400
47,800 du Pont (E.I.) de Nemours &
Company......................... 4,218,350
7,200 Eastman Chemical Company.......... 420,300
5,400 Ecolab Inc. ...................... 182,250
3,100 FMC Corporation (New)+............ 210,413
17,400 Freeport McMoran Copper and
Gold, Class B................... 543,750
4,600 Goodrich (B.F.) Company........... 207,575
9,100 Hercules, Inc. ................... 498,225
6,800 Mallinckrodt Group Inc. .......... 283,050
50,100 Monsanto Company.................. 1,828,650
5,500 Nalco Chemical Company............ 199,375
16,500 PPG Industries, Inc. ............. 897,188
12,500 Praxair Inc. ..................... 537,500
5,700 Rohm & Haas Company............... 373,350
11,700 Union Carbide Corporation......... 533,813
------------
13,168,139
------------
CHEMICALS -- SPECIALTY -- 0.4%
4,900 Avery Dennison Corporation........ 271,950
10,900 Engelhard Corporation............. 250,700
8,500 Grace (W.R.) & Company............ 442,000
5,200 Great Lakes Chemical
Corporation..................... 296,400
12,500 Morton International Inc.,
Industries...................... 496,875
4,100 Sigma-Aldrich Corporation......... 233,700
------------
1,991,625
------------
COAL, GAS AND PIPELINE -- 0.4%
9,000 Coastal Corporation............... 371,250
1,500 Eastern Enterprises............... 56,625
21,500 Enron Corporation................. 876,125
6,200 ENSERCH Corporation............... 129,425
12,000 PanEnergy Corporation............. 415,500
11,600 Santa Fe Energy Resources......... 145,000
------------
1,993,925
------------
COMMUNICATION EQUIPMENT -- 0.1%
6,000 Andrew Corporation+............... 299,250
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 14
NATIONS FUND
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
COMPUTER RELATED -- 4.6%
11,800 Amdahl Corporation+............... $ 111,363
10,300 Apple Computer Inc. .............. 228,531
4,900 Ceridian Corporation+............. 245,000
55,300 cisco Systems, Inc.+.............. 3,432,056
22,900 COMPAQ Computer Corporation+...... 1,468,463
2,900 Data General Corporation+......... 40,600
8,800 Dell Computer Corporation+........ 684,200
13,100 Digital Equipment Corporation+.... 468,325
19,300 EMC Corporation+.................. 436,662
87,700 Hewlett-Packard Company........... 4,275,375
11,100 Honeywell, Inc. .................. 700,688
45,600 International Business
Machines Corporation............ 5,677,200
9,100 Seagate Technology+............... 508,463
13,300 Silicon Graphics Inc.+............ 294,263
15,500 Sun Microsystems Inc.+............ 962,938
14,000 3Com Corporation+................. 840,875
11,800 Tandem Computers Inc.+............ 126,850
14,100 Unisys Corporation+............... 86,363
------------
20,588,215
------------
COMPUTER SERVICES -- 0.8%
25,500 Automatic Data Processing Inc. ... 1,112,437
31,600 Computer Associates International
Inc. ........................... 1,888,100
6,600 Computer Sciences Corporation+.... 507,375
------------
3,507,912
------------
COMPUTER SOFTWARE -- 2.7%
4,400 Autodesk, Inc. ................... 113,850
15,300 Bay Networks Inc.+................ 416,925
6,500 Cabletron Systems Inc.+........... 443,625
19,000 First Data Corporation............ 1,550,875
51,700 Microsoft Corporation+............ 6,817,938
31,500 Novell Inc.+...................... 346,500
56,400 Oracle Systems Corporation+....... 2,400,525
1,900 Shared Medical Systems
Corporation..................... 108,300
------------
12,198,538
------------
CONSTRUCTION -- 0.4%
5,700 Case Corporation.................. 277,875
2,400 Centex Corporation................ 78,300
2,500 Crane Company..................... 110,937
7,400 Fluor Corporation................. 455,100
3,000 Kaufman & Broad Home
Corporation..................... 39,000
13,600 Masco Corporation................. 408,000
4,200 Owens-Corning Fiberglass
Corporation..................... 154,875
1,900 Pulte Corporation................. 48,688
7,600 Sherwin-Williams Company.......... 352,450
------------
1,925,225
------------
CONTAINERS -- 0.2%
2,400 Ball Corporation.................. 58,800
4,500 Bemis Inc. ....................... 152,437
10,700 Crown Cork & Seal Inc. ........... 493,537
5,600 Tupperware Corporation............ 274,400
------------
979,174
------------
COSMETICS AND TOILETRY -- 2.5%
2,100 Alberto-Culver Company, Class B... 91,088
11,300 Avon Products Inc. ............... 560,762
4,700 Clorox Company.................... 450,613
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
COSMETICS AND TOILETRY -- (CONTINUED)
12,600 Colgate-Palmolive Company......... $ 1,094,625
38,100 Gillette Company.................. 2,747,962
9,400 International Flavors & Fragrances
Inc. ........................... 410,075
58,900 Procter & Gamble Company.......... 5,742,750
------------
11,097,875
------------
DIVERSIFIED -- 1.7%
9,900 Alco Standard Corporation......... 493,763
24,400 AlliedSignal Inc. ................ 1,607,350
19,100 Corning Inc. ..................... 744,900
10,300 Loews Corporation................. 796,963
36,000 Minnesota Mining &
Manufacturing Company........... 2,515,500
14,900 Tenneco Inc. ..................... 746,863
7,500 Textron, Inc. .................... 637,500
9,100 Whitman Corporation............... 210,438
------------
7,753,277
------------
DRUGS -- 6.1%
6,500 ALZA Corporation+................. 174,688
53,700 American Home Products
Corporation..................... 3,423,375
43,200 Bristol-Myers Squibb Company...... 4,163,400
46,700 Lilly (Eli) & Company............. 3,012,150
105,300 Merck & Company Inc. ............. 7,410,488
54,600 Pfizer, Inc. ..................... 4,320,225
43,200 Pharmacia & Upjohn Inc. .......... 1,782,000
31,800 Schering-Plough Corporation....... 1,955,700
22,900 Warner-Lambert Company............ 1,511,400
------------
27,753,426
------------
ELECTRIC POWER -- 3.0%
15,700 American Electric Power Inc. ..... 637,812
12,400 Baltimore Gas & Electric
Company......................... 323,950
13,300 Carolina Power & Light Company.... 458,850
17,000 Central & South West
Corporation..................... 442,000
13,400 CINergy Corporation............... 413,725
20,600 Consolidated Edison Company
New York Inc. .................. 571,650
14,400 Dominion Resources Inc. .......... 543,600
12,800 DTE Energy Company................ 358,400
17,800 Duke Power Company................ 829,925
38,400 Edison International.............. 686,400
20,300 Entergy Corporation, New.......... 548,100
15,300 FPL Group Inc. ................... 661,725
10,200 General Public Utilities
Corporation..................... 313,650
22,100 Houston Industries Inc. .......... 488,962
13,000 Niagara Mohawk Power
Corporation..................... 104,000
5,700 Northern States Power
Corporation..................... 265,763
13,400 Ohio Edison Company............... 259,625
36,900 Pacific Gas & Electric Company.... 802,575
24,700 PacifiCorp........................ 509,438
19,400 PECO Energy Company............... 460,750
14,000 PP&L Resources Inc. .............. 306,250
21,300 Public Service Enterprise Group... 569,775
57,100 Southern Company.................. 1,291,888
20,200 Texas Utilities Company........... 800,425
18,900 Unicom Corporation................ 474,862
8,300 Union Electric Company............ 306,063
------------
13,430,163
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 15
NATIONS FUND
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRICAL EQUIPMENT -- 3.6%
19,200 Emerson Electric Company.......... $ 1,730,400
141,800 General Electric Company.......... 12,903,800
10,600 General Instrument Corporation+... 262,350
4,200 Grainger (W.W.) Inc. ............. 295,050
4,100 Raychem Corporation............... 307,500
6,000 Scientific-Atlanta Inc. .......... 95,250
3,000 Thomas & Betts Corporation........ 123,000
34,000 Westinghouse Electric
Corporation..................... 633,250
------------
16,350,600
------------
ELECTRONICS -- 1.1%
18,600 AMP Inc. ......................... 720,750
15,100 Applied Materials Inc.+........... 417,137
3,500 Harris Corporation................ 227,937
3,500 Intergraph Corporation+........... 38,500
10,600 LSI Logic Corporation+............ 246,450
50,400 Motorola, Inc. ................... 2,601,900
11,000 National Semiconductor
Corporation+.................... 221,375
3,900 Perkin-Elmer Corporation.......... 225,713
3,200 Tektronix Inc. ................... 130,800
------------
4,830,562
------------
ENVIRONMENTAL -- 0.7%
18,400 Browning-Ferris Industries
Inc. ........................... 460,000
3,400 Johnson Controls Inc. ............ 255,000
24,200 Laidlaw Inc., Class B............. 266,200
4,200 Millipore Corporation............. 165,900
4,900 Safety-Kleen Corporation.......... 80,850
13,700 Tyco International Ltd. .......... 590,813
42,700 WMX Technologies Inc. ............ 1,403,763
------------
3,222,526
------------
EXPLORATION AND DRILLING -- 0.2%
10,900 Burlington Resources Inc. ........ 483,687
1,900 Helmerich & Payne Inc. ........... 82,888
4,600 McDermott International Inc. ..... 100,050
------------
666,625
------------
FINANCIAL SERVICES -- 3.4%
40,800 American Express Company.......... 1,887,000
17,700 American General Corporation...... 668,175
4,900 Beneficial Corporation............ 281,750
14,200 Dean Witter, Discover & Company... 781,000
15,400 Federal Home Loan Mortgage
Corporation..................... 1,507,275
93,200 Federal National Mortgage
Association..................... 3,250,350
12,100 Green Tree Financial
Corporation..................... 474,925
7,700 Household International Inc. ..... 633,325
5,900 Marsh & McLennan Companies
Inc. ........................... 573,038
18,600 MBNA Corporation.................. 646,350
15,100 Merrill Lynch & Company Inc. ..... 990,938
13,400 Morgan Stanley Group, Inc. ....... 666,650
8,700 Salomon Inc. ..................... 396,938
5,800 Transamerica Corporation.......... 405,275
41,000 Travelers Group Inc. ............. 2,014,125
------------
15,177,114
------------
FOOD PRODUCERS -- 3.1%
47,920 Archer-Daniels-Midland Company.... 922,460
20,900 Campbell Soup Company............. 1,630,200
21,300 ConAgra Inc. ..................... 1,049,025
12,400 CPC International Inc. ........... 928,450
13,700 General Mills Inc. ............... 827,137
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
FOOD PRODUCERS -- (CONTINUED)
31,800 Heinz (H.J.) Company.............. $ 1,073,250
13,400 Hershey Foods Corporation......... 673,350
19,000 Kellogg Company................... 1,308,625
6,900 Pioneer Hi-Bred International..... 417,450
11,400 Quaker Oats Company............... 417,525
8,800 Ralston-Purina Group.............. 602,800
41,400 Sara Lee Corporation.............. 1,480,050
13,600 Unilever N.V., ADR................ 2,143,700
10,100 Wrigley (Wm.) Jr. Company......... 608,525
------------
14,082,547
------------
FOOD RETAILERS -- 0.7%
22,400 Albertson's, Inc. ................ 943,600
12,400 American Stores Company........... 496,000
2,900 Fleming Companies Inc. ........... 50,387
5,200 Giant Food Inc., Class A.......... 176,800
3,300 Great Atlantic & Pacific Tea
Inc. ........................... 85,388
9,900 Kroger Company+................... 443,025
5,800 Supervalu Inc. ................... 159,500
15,700 Sysco Corporation................. 527,913
13,100 Winn-Dixie Stores Inc. ........... 456,863
------------
3,339,476
------------
FURNITURE AND APPLIANCES -- 0.4%
3,000 Armstrong World Industries
Inc. ........................... 187,125
7,600 Black & Decker Corporation........ 315,400
9,100 Maytag Corporation................ 177,450
13,000 Newell Company.................... 390,000
13,700 Rubbermaid, Inc. ................. 335,650
7,700 Stanley Works..................... 216,563
6,700 Whirlpool Corporation............. 339,188
------------
1,961,376
------------
INSURANCE -- 3.0%
12,800 Aetna Life & Casualty Company..... 900,800
3,400 Alexander & Alexander Services
Inc. ........................... 56,525
39,200 Allstate Corporation.............. 1,930,600
40,800 American International Group,
Inc. ........................... 4,110,600
9,000 AON Corporation................... 488,250
15,700 Chubb Corporation................. 722,200
6,500 CIGNA Corporation................. 779,187
7,000 General Re Corporation............ 992,250
9,900 ITT Hartford Group Inc. .......... 584,100
6,100 Jefferson-Pilot Corporation....... 315,675
8,800 Lincoln National Corporation
Ltd. ........................... 386,100
4,900 MGIC Investment Corporation....... 330,138
8,600 Providian Corporation............. 369,800
10,600 SAFECO Corporation................ 371,000
6,800 St. Paul Companies Inc. .......... 377,400
5,900 Torchmark Corporation............. 270,663
6,600 UNUM Corporation.................. 423,225
8,200 USF&G Corporation................. 151,700
3,200 USLIFE Corporation................ 96,000
------------
13,656,213
------------
MACHINERY AND EQUIPMENT -- 1.3%
2,300 Briggs & Stratton Corporation..... 102,062
16,900 Caterpillar Inc. ................. 1,273,838
3,000 Cincinnati Milacron Inc. ......... 56,625
9,300 Cooper Industries Inc. ........... 402,225
4,400 Cummins Engine Inc. .............. 173,250
22,800 Deere & Company................... 957,600
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 16
NATIONS FUND
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
MACHINERY AND EQUIPMENT -- (CONTINUED)
10,100 Dover Corporation................. $ 482,275
3,100 Foster Wheeler Corporation........ 135,625
3,800 General Signal Corporation........ 167,200
3,200 Giddings & Lewis Inc. ............ 38,000
3,100 Harnischfeger Industries Inc. .... 117,025
9,900 Illinois Tool Works Inc. ......... 714,037
8,900 Ingersoll-Rand Company............ 422,750
700 Nacco Industries Inc., Class A.... 33,425
9,900 Pall Corporation.................. 279,675
6,900 Parker-Hannifin Corporation....... 289,800
2,900 Timken Company.................... 113,825
2,500 TRINOVA Corporation............... 78,750
------------
5,837,987
------------
MEDIA -- 0.7%
19,900 Comcast Corporation, Class A...... 305,962
56,100 Tele-Communications Inc., Class
A............................... 837,994
34,000 Time Warner Inc. ................. 1,313,250
40,900 U.S. West Media Group, Inc.+...... 690,188
------------
3,147,394
------------
MEDICAL PRODUCTS AND SUPPLIES -- 3.2%
67,700 Abbott Laboratories............... 3,334,225
5,700 Allergan, Inc. ................... 217,313
4,800 Bard (C.R.) Inc. ................. 149,400
5,100 Bausch & Lomb Inc. ............... 187,425
24,000 Baxter International Inc. ........ 1,122,000
11,500 Becton, Dickinson & Company....... 508,875
9,300 Biomet, Inc.+..................... 152,287
14,400 Boston Scientific Corporation+.... 828,000
8,917 Fresenius Medical Care, ADR....... 207,326
114,400 Johnson & Johnson................. 5,863,000
19,800 Medtronic, Inc. .................. 1,269,675
6,400 St. Jude Medical Inc.+............ 258,400
5,200 United States Surgical
Corporation..................... 221,000
------------
14,318,926
------------
MEDICAL SERVICES -- 0.9%
8,200 Beverly Enterprises Inc.+......... 89,175
38,100 Columbia/HCA Healthcare
Corporation..................... 2,166,937
5,300 Community Psychiatric Centers..... 49,688
13,500 Humana Inc.+...................... 273,375
5,500 Manor Care Inc. .................. 211,062
18,000 Tenet Healthcare Corporation+..... 400,500
15,300 United Healthcare Corporation..... 636,863
------------
3,827,600
------------
METALS AND MINING -- 1.1%
19,300 Alcan Aluminum Ltd. .............. 579,000
15,400 Aluminum Company of America....... 908,600
3,600 ASARCO Inc. ...................... 95,850
30,100 Barrick Gold Corporation.......... 756,262
20,100 Battle Mountain Gold Company...... 155,775
8,400 Cyprus Amax Minerals Company...... 180,600
9,800 Echo Bay Mines Ltd. .............. 86,362
12,200 Homestake Mining Company.......... 178,425
14,400 Inco Ltd. ........................ 442,800
8,600 Newmont Mining Corporation........ 406,350
5,800 Phelps Dodge Corporation.......... 371,925
20,700 Placer Dome Inc., ADR............. 489,037
5,300 Reynolds Metals Company........... 270,963
7,700 Santa Fe Pacific Gold
Corporation..................... 109,725
------------
5,031,674
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
OFFICE EQUIPMENT -- 0.5%
8,300 Moore Corporation Ltd. ........... $ 152,512
13,100 Pitney Bowes Inc. ................ 689,388
28,400 Xerox Corporation................. 1,522,950
------------
2,364,850
------------
OIL -- DOMESTIC -- 2.0%
8,400 Amerada Hess Corporation.......... 444,150
42,700 Amoco Corporation................. 3,005,012
5,500 Ashland Oil, Inc. ................ 218,625
13,800 Atlantic Richfield Company........ 1,759,500
4,200 Kerr-McGee Corporation............ 255,675
3,000 Louisana Land & Exploration
Company......................... 157,875
27,900 Occidental Petroleum
Corporation..................... 652,162
8,700 Oryx Energy Company+.............. 154,425
3,700 Pennzoil Company.................. 195,637
22,800 Phillips Petroleum Company........ 974,700
7,600 Sun Company, Inc. ................ 174,800
21,100 Unocal Corporation................ 759,600
24,600 USX-Marathon Group (New).......... 531,975
------------
9,284,136
------------
OIL -- INTERNATIONAL -- 5.7%
56,100 Chevron Corporation............... 3,513,262
106,600 Exxon Corporation................. 8,874,450
33,900 Mobil Corporation................. 3,923,925
46,100 Royal Dutch Petroleum
Company, ADR.................... 7,197,363
22,300 Texaco Inc. ...................... 2,051,600
------------
25,560,600
------------
OIL SERVICES -- 0.8%
12,200 Baker Hughes Inc. ................ 370,575
14,400 Dresser Industries, Inc. ......... 428,400
9,700 Halliburton Company............... 500,763
7,100 Rowan Companies Inc.+............. 132,238
20,900 Schlumberger Ltd. ................ 1,766,050
4,700 Western Atlas, Inc.+.............. 292,575
------------
3,490,601
------------
PAPER AND FOREST PRODUCTS -- 1.6%
4,600 Boise Cascade Corporation......... 156,400
8,600 Champion International
Corporation..................... 394,525
8,100 Georgia-Pacific Corporation....... 640,912
25,600 International Paper Company....... 1,088,000
7,300 James River Corporation........... 201,662
24,200 Kimberly-Clark Corporation........ 2,132,625
9,300 Louisiana Pacific Corporation..... 211,575
4,800 Mead Corporation.................. 281,400
2,200 Potlatch Corporation.............. 85,250
7,300 Stone Container Corporation....... 114,062
4,800 Temple-Inland Inc. ............... 253,200
5,900 Union Camp Corporation............ 288,363
8,700 Westvaco Corporation.............. 257,738
17,300 Weyerhaeuser Company.............. 797,963
4,800 Willamette Industries Inc. ....... 314,400
------------
7,218,075
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 17
NATIONS FUND
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
PHOTO AND OPTICAL -- 0.5%
29,200 Eastman Kodak Company............. $ 2,292,200
3,900 Polaroid Corporation.............. 171,600
------------
2,463,800
------------
PRINTING AND PUBLISHING -- 1.2%
6,600 American Greetings Corporation,
Class A......................... 188,925
7,000 Deluxe Corporation................ 264,250
13,600 Donnelley (R.R.) & Sons Company... 438,600
8,700 Dow Jones & Company Inc. ......... 321,900
14,100 Dun & Bradstreet Corporation...... 840,712
12,200 Gannet Inc. ...................... 858,575
6,900 Harcourt General Inc. ............ 381,225
3,000 Harland (John H.) Company......... 90,000
3,600 Jostens Inc. ..................... 75,150
7,800 Knight-Ridder Inc. ............... 288,600
8,400 McGraw-Hill Companies, Inc. ...... 358,050
1,900 Meredith Corporation.............. 93,813
8,400 New York Times Company, Class A... 283,500
8,700 Times Mirror Company, Class A..... 387,150
5,400 Tribune Company................... 421,200
------------
5,291,650
------------
PROFESSIONAL SERVICES -- 0.3%
8,200 Block (H&R) Inc. ................. 243,950
6,600 Interpublic Group Companies
Inc. ........................... 311,850
20,200 Service Corporation
International................... 611,050
------------
1,166,850
------------
RECREATION -- 1.4%
6,400 Bally Entertainment Corporation... 181,600
8,600 Brunswick Corporation............. 206,400
58,200 Disney (Walt) Company............. 3,688,425
3,700 Fleetwood Enterprises Inc. ....... 113,775
8,600 Harrah's Entertainment Inc. ...... 160,175
7,400 Hasbro Inc. ...................... 274,725
3,300 King World Productions Inc.+...... 121,687
24,200 Mattel, Inc. ..................... 626,175
31,200 Viacom Inc., Class B+............. 1,107,600
------------
6,480,562
------------
RESTAURANTS AND LODGING -- 1.2%
13,700 Darden Restaurants Inc. .......... 118,162
10,100 HFS Inc.+......................... 675,438
15,600 Hilton Hotels Corporation......... 442,650
10,300 ITT Corporation................... 449,337
1,800 Luby's Cafeterias Inc. ........... 43,200
10,100 Marriot International Inc. ....... 556,762
60,100 McDonald's Corporation............ 2,847,238
4,500 Ryan's Family Steak House Inc.+... 34,312
3,700 Shoney's Inc.+.................... 33,762
10,000 Wendy's International Inc. ....... 215,000
------------
5,415,861
------------
RETAIL -- DISCOUNT -- 1.6%
38,500 Kmart Stores Corporation.......... 394,625
7,300 Rite Aid Corporation.............. 264,625
6,600 TJX Companies Inc. ............... 236,775
24,400 Toys R Us Inc.+................... 710,650
196,500 Wal-Mart Stores Inc. ............. 5,182,688
11,400 Woolworth Corporation+............ 235,125
------------
7,024,488
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
RETAIL -- GENERAL -- 1.2%
19,000 Dayton Hudson Corporation......... $ 627,000
9,700 Dillard Department Stores Inc.,
Class A......................... 312,825
16,500 Federated Department Stores
Inc.+........................... 550,688
21,600 May Department Stores Company..... 1,050,300
3,000 Mercantile Stores Inc. ........... 162,000
19,700 Penney (J.C.) Company Inc. ....... 1,066,262
17,300 Price/Costco Inc.+................ 354,650
33,600 Sears, Roebuck & Company.......... 1,503,600
------------
5,627,325
------------
RETAIL -- SPECIALTY -- 1.6%
8,700 Charming Shoppes Inc. ............ 52,200
8,700 Circuit City Stores Inc. ......... 314,288
21,000 CUC International Inc.+........... 837,375
25,600 Gap Inc. ......................... 739,200
40,600 Home Depot Inc. .................. 2,309,125
24,000 Limited Inc. ..................... 459,000
1,400 Longs Drug Stores Corporation..... 60,900
13,700 Lowe's Companies Inc. ............ 559,987
8,800 Melville Corporation.............. 388,300
6,900 Nordstrom, Inc. .................. 262,200
5,200 Pep Boys -- Manny, Moe & Jack..... 185,250
5,400 Tandy Corporation................. 218,025
21,200 Walgreen Company.................. 784,400
------------
7,170,250
------------
SAVINGS AND LOANS -- 0.2%
10,000 Ahmanson (H.F.) & Company......... 280,000
5,100 Golden West Financial
Corporation..................... 297,712
11,700 Great Western Financial
Corporation..................... 310,050
------------
887,762
------------
SEMICONDUCTORS -- 1.9%
10,100 Advanced Micro Devices Inc. ...... 148,975
71,200 Intel Corporation................. 6,795,150
17,700 Micron Technology, Inc. .......... 539,850
16,000 Texas Instruments Inc. ........... 882,000
------------
8,365,975
------------
STEEL -- 0.2%
8,100 Armco Inc.+....................... 36,450
9,300 Bethlehem Steel Corporation+...... 93,000
3,900 Inland Steel Industries Inc. ..... 69,712
7,300 Nucor Corporation................. 370,475
6,900 USX-U.S. Steel Group.............. 196,650
7,500 Worthington Industries Inc. ...... 150,000
------------
916,287
------------
TELECOMMUNICATIONS -- 0.5%
9,400 DSC Communications Corporation+... 235,000
8,500 Lucent Technologies............... 389,938
22,100 Northern Telecommunications,
Ltd. ........................... 1,276,275
7,700 Tellabs, Inc.+.................... 543,812
------------
2,445,025
------------
TOBACCO -- 1.6%
15,800 American Brands Inc. ............. 667,550
70,100 Philip Morris Companies Inc. ..... 6,291,475
15,900 UST Inc. ......................... 471,038
------------
7,430,063
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 18
NATIONS FUND
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TRANSPORTATION -- AIRLINES -- 0.3%
7,600 AMR Corporation+.................. $ 605,150
6,500 Delta Air Lines, Inc. ............ 468,000
11,900 Southwest Airlines Company........ 272,212
5,000 USAir Group Inc.+................. 82,500
------------
1,427,862
------------
TRANSPORTATION -- RAILROADS -- 1.1%
13,000 Burlington Northern Santa Fe
Inc. ........................... 1,096,875
6,700 Conrail Inc. ..................... 484,912
19,300 CSX Corporation................... 974,650
10,700 Norfolk Southern Corporation...... 977,712
21,000 Union Pacific Corporation......... 1,538,250
------------
5,072,399
------------
TRUCKING AND SHIPPING -- 0.2%
3,300 Caliber Systems Inc. ............. 53,212
3,900 Consolidated Freightways Inc. .... 95,550
4,900 Federal Express Corporation+...... 388,325
8,200 Ryder Systems Inc. ............... 242,925
2,100 Yellow Corporation+............... 27,300
------------
807,312
------------
UTILITIES -- NATURAL GAS -- 0.5%
4,500 Columbia Gas Systems Inc. ........ 252,000
8,200 Consolidated Natural Gas
Company......................... 439,725
4,200 NICOR Inc. ....................... 141,750
11,100 NorAm Energy Corporation.......... 165,113
2,100 ONEOK Inc. ....................... 57,750
7,000 Pacific Enterprises............... 211,750
3,000 Peoples Energy Corporation........ 102,000
7,500 Sonat, Inc. ...................... 331,875
8,500 Williams Companies Inc. .......... 433,500
------------
2,135,463
------------
UTILITIES -- TELEPHONE -- 6.7%
42,100 AirTouch Communications, Inc+..... 1,163,012
16,200 ALLTEL Corporation................ 451,575
47,300 Ameritech Corporation............. 2,489,162
137,800 AT&T Corporation.................. 7,200,050
37,600 Bell Atlantic Corporation......... 2,251,300
85,000 BellSouth Corporation............. 3,145,000
83,800 GTE Corporation................... 3,226,300
59,300 MCI Communications Corporation.... 1,519,562
36,900 NYNEX Corporation................. 1,605,150
36,300 Pacific Telesis Group............. 1,220,587
52,200 SBC Communications Inc. .......... 2,512,125
37,700 Sprint Corporation................ 1,465,587
40,900 U.S. West Inc. ................... 1,216,775
33,900 WorldCom Inc.+.................... 724,613
------------
30,190,798
------------
OTHER -- 0.3%
19,100 Rockwell International
Corporation..................... 1,076,763
14,500 Teledyne Inc. .................... 328,062
------------
1,404,825
------------
TOTAL COMMON STOCKS
(Cost $387,360,721)............. 447,270,336
============
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
- ---------------------------------------------------------------
U.S. TREASURY BILLS -- 0.1%
$ 100,000 5.010%** 11/14/1996++............. $ 99,388
100,000 4.990%** 11/21/1996++............. 99,293
100,000 5.197%** 12/05/1996++............. 99,062
100,000 5.269%** 12/12/1996++............. 99,006
50,000 5.150%** 12/19/1996++............. 49,435
------------
TOTAL U.S. TREASURY BILLS
(Cost $446,061)................. 446,184
============
TOTAL SECURITIES
(Cost $387,806,782)............. 447,716,520
============
REPURCHASE AGREEMENT -- 0.8%
(Cost $3,613,000)
3,613,000 Agreement with Smith Barney,
5.680% dated 09/30/96, to be
repurchased at $3,613,570 on
10/01/96, collateralized by:
$3,685,636 U.S. Government
Agency Securities,
4.730% -- 9.375% due
12/23/96 -- 07/15/43............ 3,613,000
============
TOTAL INVESTMENTS
(Cost $391,419,782*).................. 99.9% 451,329,520
OTHER ASSETS AND LIABILITIES (NET)...... 0.1 351,964
----- ------------
NET ASSETS.............................. 100.0% $451,681,484
===== ============
</TABLE>
<TABLE>
<CAPTION>
NET
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
<C> <S> <C>
- ------------------------------------------------------------
FUTURES CONTRACTS -- LONG POSITION
10 S&P 500 Index Futures,
December 1996.................. $ 12,650
============
</TABLE>
- ---------------
<TABLE>
<C> <S>
* Aggregate cost for Federal tax purposes.
** Rate represents annualized yield at date of purchase.
+ Non-income producing security.
++ Security segregated as collateral for Futures Contracts.
</TABLE>
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 19
NATIONS FUND
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 99.2%
AEROSPACE AND DEFENSE -- 6.1%
54,600 McDonnell Douglas Corporation..... $ 2,866,500
38,100 Northrop Grumman Corporation...... 3,057,525
23,600 United Technologies Corporation... 2,834,950
------------
8,758,975
------------
APPAREL AND TEXTILES -- 6.0%
94,000 Fruit of the Loom Inc., Class
A+.............................. 2,914,000
78,900 Liz Claiborne Inc. ............... 2,939,025
22,700 Nike Inc., Class B................ 2,758,050
------------
8,611,075
------------
BANKS -- 4.0%
34,500 BankAmerica Corporation........... 2,833,313
35,800 Chase Manhattan Corporation....... 2,868,475
------------
5,701,788
------------
CHEMICALS -- BASIC -- 4.3%
77,200 Cytec Industries Inc.+............ 3,001,150
70,500 Goodrich (B.F.) Company........... 3,181,313
------------
6,182,463
------------
COMPUTER RELATED -- 2.1%
48,100 Sun Microsystems Inc.+............ 2,988,213
------------
COMPUTER SOFTWARE -- 3.9%
34,600 BMC Software, Inc.+............... 2,750,700
63,900 Compuware Corporation+............ 2,923,425
------------
5,674,125
------------
DIVERSIFIED -- 1.9%
35,300 Loews Corporation................. 2,731,337
------------
ELECTRIC POWER -- 3.9%
95,200 CMS Energy Corporation............ 2,867,900
68,500 Texas Utilities Company........... 2,714,312
------------
5,582,212
------------
ENVIRONMENTAL -- 1.9%
37,400 Johnson Controls Inc. ............ 2,805,000
------------
FINANCIAL SERVICES -- 7.9%
56,663 Morgan Stanley Group, Inc. ....... 2,818,984
60,600 Salomon Inc. ..................... 2,764,875
38,700 Student Loan Marketing
Association..................... 2,887,988
59,450 Travelers Group Inc. ............. 2,920,481
------------
11,392,328
------------
FOOD RETAILERS -- 4.2%
72,494 Safeway Inc.+..................... 3,090,057
69,000 Vons Companies, Inc.+............. 2,958,375
------------
6,048,432
------------
INSURANCE -- 5.9%
23,700 CIGNA Corporation................. 2,841,037
110,100 Equitable Companies, Inc. ........ 2,835,075
42,800 MGIC Investment Corporation....... 2,883,650
------------
8,559,762
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
MACHINERY AND EQUIPMENT -- 8.0%
38,100 Caterpillar Inc. ................. $ 2,871,787
61,600 Dover Corporation................. 2,941,400
38,700 Illinois Tool Works Inc. ......... 2,791,238
62,800 Ingersoll-Rand Company............ 2,983,000
------------
11,587,425
------------
MEDICAL PRODUCTS AND SUPPLIES -- 1.9%
50,000 Guidant Corporation............... 2,762,500
------------
OIL -- DOMESTIC -- 7.8%
52,400 Louisiana Land & Exploration
Company......................... 2,757,550
52,500 Pennzoil Company.................. 2,775,937
66,700 Phillips Petroleum Company........ 2,851,425
78,400 Unocal Corporation................ 2,822,400
------------
11,207,312
------------
OIL -- INTERNATIONAL -- 3.9%
23,200 British Petroleum Company, ADS.... 2,900,000
29,800 Texaco Inc. ...................... 2,741,600
------------
5,641,600
------------
OIL SERVICES -- 1.9%
54,100 Halliburton Company............... 2,792,912
------------
PAPER AND FOREST PRODUCTS -- 2.0%
35,500 Georgia-Pacific Corporation....... 2,808,937
------------
PHOTO AND OPTICAL -- 2.1%
37,900 Eastman Kodak Company............. 2,975,150
------------
RECREATION -- 2.1%
99,000 Fleetwood Enterprises Inc. ....... 3,044,250
------------
RETAIL -- DISCOUNT -- 3.8%
78,900 TJX Companies Inc. ............... 2,830,537
128,200 Woolworth Corporation+............ 2,644,125
------------
5,474,662
------------
RETAIL -- GENERAL -- 1.8%
79,500 Dayton Hudson Corporation......... 2,623,500
------------
TRANSPORTATION -- AIRLINES -- 1.9%
59,200 UAL Corporation+.................. 2,782,400
------------
UTILITIES -- NATURAL GAS -- 5.8%
52,100 Consolidated Natural Gas
Company......................... 2,793,863
83,700 NICOR Inc. ....................... 2,824,875
54,200 Williams Companies Inc. .......... 2,764,200
------------
8,382,938
------------
UTILITIES -- TELEPHONE -- 4.1%
53,196 Ameritech Corporation............. 2,799,440
55,300 Cincinnati Bell Inc. ............. 2,930,900
------------
5,730,340
------------
TOTAL COMMON STOCKS
(Cost $124,119,083)............. 142,849,636
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 20
NATIONS FUND
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.6%
(Cost $2,235,000)
$2,235,000 Agreement with Smith Barney,
5.680% dated 09/30/96, to be
repurchased
at $2,235,353 on 10/01/96,
collateralized by: $2,279,933
U.S. Government Agency
Securities, 4.730% -- 9.375% due
12/23/96 -- 07/15/43............ $ 2,235,000
============
TOTAL INVESTMENTS
(Cost $126,354,083*)................... 100.8% 145,084,636
OTHER ASSETS AND
LIABILITIES (NET)...................... (0.8) (1,095,969)
----- ------------
NET ASSETS............................... 100.0% $143,988,667
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 21
NATIONS FUND
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 98.3%
AEROSPACE AND DEFENSE -- 0.1%
18,100 General Motors Corporation, Class
H.................................. $ 1,045,275
--------------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 0.1%
20,000 Harley-Davidson Inc.................. 860,000
--------------
BANKS -- 2.7%
199,200 Bank of New York Inc. ............... 5,851,500
40,000 Barnett Banks Inc. .................. 1,350,000
19,000 Morgan (J.P.) & Company Inc. ........ 1,688,625
208,000 Norwest Corporation.................. 8,502,000
45,000 Signet Banking Corporation........... 1,203,750
50,000 SunTrust Banks Inc. ................. 2,050,000
--------------
20,645,875
--------------
BEVERAGES -- 2.8%
130,100 Coca-Cola Company.................... 6,618,838
34,350 Coca-Cola Enterprises Inc. .......... 1,554,338
471,500 PepsiCo Inc. ........................ 13,319,875
--------------
21,493,051
--------------
BIO SPECIALTY PHARMACEUTICALS -- 0.1%
23,000 Scherer (R.P.) Corporation+.......... 1,121,250
--------------
CHEMICALS -- SPECIALTY -- 2.9%
69,000 Great Lakes Chemical Corporation..... 3,933,000
236,250 Morton International Inc.,
Industries......................... 9,390,938
14,600 Raychem Corporation.................. 1,095,000
148,900 Sigma-Aldrich Corporation............ 8,487,300
--------------
22,906,238
--------------
COAL, GAS AND PIPELINE -- 1.4%
268,100 Enron Corporation.................... 10,925,075
--------------
COMMUNICATION EQUIPMENT -- 1.7%
34,500 Andrew Corporation+.................. 1,720,688
172,800 Ericsson (L.M.) Telecommunications
Company, Class B, ADR.............. 4,384,800
115,200 Newbridge Networks+.................. 7,344,000
--------------
13,449,488
--------------
COMPUTER RELATED -- 5.1%
193,700 Bay Networks Inc.+................... 5,278,325
149,100 Ceridian Corporation+................ 7,455,000
290,500 cisco Systems, Inc.+................. 18,029,156
113,950 FORE Systems, Inc.+.................. 4,714,681
22,500 Hewlett-Packard Company.............. 1,096,875
44,000 U.S. Robotics Corporation............ 2,843,500
--------------
39,417,537
--------------
COMPUTER SERVICES -- 0.7%
87,100 Computer Associates International
Inc. .............................. 5,204,225
--------------
COMPUTER SOFTWARE -- 6.9%
126,500 BMC Software, Inc.+.................. 10,056,750
147,150 First Data Corporation............... 12,011,119
138,800 Microsoft Corporation+............... 18,304,250
24,000 Millipore Corporation................ 948,000
173,200 Parametric Technology Corporation+... 8,551,750
44,500 PeopleSoft, Inc.+.................... 3,704,625
--------------
53,576,494
--------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
CONSTRUCTION -- 2.0%
161,400 Fluor Corporation.................... $ 9,926,100
131,100 Foster Wheeler Corporation........... 5,735,625
--------------
15,661,725
--------------
CONTAINERS -- 1.2%
199,500 Crown Cork & Seal Inc. .............. 9,201,938
--------------
COSMETICS AND TOILETRY -- 1.6%
81,800 Gillette Company..................... 5,899,825
69,550 Procter & Gamble Company............. 6,781,125
--------------
12,680,950
--------------
DIVERSIFIED -- 1.1%
134,800 AlliedSignal Inc. ................... 8,879,950
--------------
DRUGS -- 7.4%
161,100 Bristol-Myers Squibb Company......... 15,526,013
284,100 Merck & Company Inc. ................ 19,993,538
20,000 Pfizer, Inc. ........................ 1,582,500
299,800 Schering-Plough Corporation.......... 18,437,700
30,000 SmithKline Beecham Plc, ADR.......... 1,826,250
--------------
57,366,001
--------------
ELECTRICAL EQUIPMENT -- 3.1%
158,700 Emerson Electric Company............. 14,302,838
104,000 General Electric Company............. 9,464,000
--------------
23,766,838
--------------
FINANCIAL SERVICES -- 5.5%
135,500 Dean Witter, Discover & Company...... 7,452,500
309,600 Equifax Inc. ........................ 8,165,700
82,300 Federal Home Loan Mortgage
Corporation........................ 8,055,113
48,000 Federal National Mortgage
Association........................ 1,674,000
68,500 First USA Inc. ...................... 3,793,188
113,000 Morgan Stanley Group, Inc. .......... 5,621,750
111,300 Transamerica Corporation............. 7,777,088
--------------
42,539,339
--------------
FOOD PRODUCERS -- 2.3%
140,200 CPC International Inc. .............. 10,497,475
102,700 Ralston-Purina Group................. 7,034,950
--------------
17,532,425
--------------
FOOD RETAILERS -- 0.7%
171,600 Sysco Corporation.................... 5,770,050
--------------
FURNITURE AND APPLIANCES -- 0.6%
157,200 Newell Company....................... 4,716,000
--------------
INSURANCE -- 5.1%
131,300 American International Group,
Inc. .............................. 13,228,475
20,000 Chubb Corporation.................... 920,000
81,100 General Re Corporation............... 11,495,925
107,300 MGIC Investment Corporation.......... 7,229,338
104,700 UNUM Corporation..................... 6,713,888
--------------
39,587,626
--------------
MACHINERY AND EQUIPMENT -- 0.6%
90,450 Dover Corporation.................... 4,318,988
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 22
NATIONS FUND
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
MEDIA -- 1.9%
314,700 Comcast Corporation, Class A......... $ 4,838,513
88,900 Tele-Communications Liberty Media
Group, Class A+.................... 2,544,763
198,900 Time Warner Inc. .................... 7,682,513
------------
15,065,789
------------
MEDICAL PRODUCTS AND SUPPLIES -- 10.2%
340,800 Abbott Laboratories.................. 16,784,400
288,900 Baxter International Inc. ........... 13,506,075
156,600 Becton, Dickinson & Company.......... 6,929,550
183,650 Boston Scientific Corporation+....... 10,559,875
233,950 Guidant Corporation.................. 12,925,738
101,100 Johnson & Johnson.................... 5,181,375
205,900 Medtronic, Inc. ..................... 13,203,338
------------
79,090,351
------------
MEDICAL SERVICES -- 1.5%
199,400 Columbia/HCA Healthcare
Corporation........................ 11,340,875
------------
OIL -- DOMESTIC -- 0.8%
105,000 Kerr-McGee Corporation............... 6,391,875
------------
OIL -- INTERNATIONAL -- 1.3%
86,800 Mobil Corporation.................... 10,047,100
------------
OIL SERVICES -- 2.7%
33,000 Baker Hughes Inc. ................... 1,002,375
133,400 Halliburton Company.................. 6,886,775
74,500 Schlumberger Ltd. ................... 6,295,250
109,600 Western Atlas, Inc.+................. 6,822,600
------------
21,007,000
------------
PAPER AND FOREST PRODUCTS -- 0.9%
81,050 Kimberly-Clark Corporation........... 7,142,531
------------
PHOTO AND OPTICAL -- 0.9%
91,600 Eastman Kodak Company................ 7,190,600
------------
PRINTING AND PUBLISHING -- 0.5%
256,600 K-III Communications Corporation+.... 2,662,225
20,000 Times Mirror Company, Class A........ 890,000
------------
3,552,225
------------
RECREATION -- 2.1%
166,500 Circus Circus Enterprises Inc.+...... 5,889,938
83,100 Disney (Walt) Company................ 5,266,463
150,000 Viacom Inc., Class B+................ 5,325,000
------------
16,481,401
------------
RESTAURANTS AND LODGING -- 1.6%
146,300 HFS Inc.+............................ 9,783,813
40,000 Hilton Hotels Corporation............ 1,135,000
24,000 McDonald's Corporation............... 1,137,000
------------
12,055,813
------------
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
RETAIL -- DISCOUNT -- 0.1%
25,000 Wal-Mart Stores Inc. ................ $ 659,375
------------
RETAIL -- SPECIALTY -- 3.7%
25,000 AutoZone Inc.+....................... 725,000
15,000 Barnes & Noble Inc.+................. 515,625
91,100 Home Depot Inc. ..................... 5,181,313
283,600 Lowe's Companies Inc. ............... 11,592,150
753,225 OfficeMax, Inc.+..................... 10,545,150
------------
28,559,238
------------
SEMICONDUCTORS -- 3.1%
60,900 Altera Corporation+.................. 3,083,062
108,600 Atmel Corporation+................... 3,353,025
176,200 Intel Corporation.................... 16,816,088
13,000 Texas Instruments Inc. .............. 716,625
------------
23,968,800
------------
TELECOMMUNICATIONS -- 4.2%
111,200 Ascend Communications Inc.+.......... 7,353,100
83,900 Cascade Communications
Corporation+....................... 6,837,850
67,000 Loral Space Communications+.......... 1,055,250
126,700 Octel Communications Corporation+.... 3,674,300
70,500 Tellabs, Inc.+....................... 4,979,063
143,100 360 (Degrees) Communications
Company+........................... 3,362,850
159,100 Vodafone Group, ADR.................. 5,429,275
------------
32,691,688
------------
TOBACCO -- 0.1%
11,500 Philip Morris Companies Inc. ........ 1,032,125
------------
UTILITIES -- TELEPHONE -- 6.3%
296,100 AirTouch Communications, Inc.+....... 8,179,763
75,300 AT&T Corporation..................... 3,934,425
270,400 BellSouth Corporation................ 10,004,800
299,100 Century Telephone Enterprises........ 10,281,563
324,600 Frontier Corporation................. 8,642,475
177,250 GTE Corporation...................... 6,824,125
44,000 WorldCom Inc.+....................... 940,500
------------
48,807,651
------------
OTHER -- 0.7%
98,600 Rockwell International Corporation... 5,558,575
------------
TOTAL COMMON STOCKS
(Cost $611,813,430)................ 763,309,350
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 23
NATIONS FUND
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.3%
(Cost $25,268,000)
$25,268,000 Agreement with Smith Barney, 5.680%
dated 09/30/96, to be repurchased
at $25,271,987 on 10/01/96,
collateralized by: $25,775,993
U.S. Government Agency
Securities, 4.730% -- 9.375% due
12/23/96 -- 07/15/43............. $ 25,268,000
============
TOTAL INVESTMENTS
(Cost $637,081,430*).................. 101.6% 788,577,350
OTHER ASSETS AND
LIABILITIES (NET)..................... (1.6) (12,441,669)
----- ------------
NET ASSETS.............................. 100.0% $776,135,681
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 24
NATIONS FUND
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 89.3%
APPAREL AND TEXTILES -- 1.4%
36,000 Gadzooks Inc.+....................... $ 1,251,000
181,400 Lands End Inc.+...................... 3,900,100
------------
5,151,100
------------
AUTOMOBILE PARTS MANUFACTURERS -- 0.9%
141,900 Superior Industries International
Inc. .............................. 3,423,338
------------
BANKS -- 2.1%
17,000 Boatmen's Bancshares Inc. ........... 949,875
192,700 Hibernia Corporation, Class A........ 2,191,962
70,000 Northern Trust Company............... 4,602,500
------------
7,744,337
------------
CHEMICALS -- SPECIALTY -- 1.3%
192,000 Airgas Inc.+......................... 4,872,000
------------
COAL, GAS AND PIPELINE -- 1.0%
64,000 Anadarko Petroleum Company........... 3,576,000
------------
COMMUNICATION EQUIPMENT -- 1.6%
95,000 Aspect Telecommunications
Corporation+....................... 5,913,750
------------
COMPUTER RELATED -- 4.9%
64,000 Aspect Development Inc.+............. 2,176,000
123,000 Cambridge Technology Partners
Inc.+.............................. 3,720,750
136,300 Comverse Technology Inc.+............ 5,298,662
56,000 IDX Systems Corporation+............. 1,960,000
125,000 Medic Computer Systems Inc.+......... 4,546,875
------------
17,702,287
------------
COMPUTER SERVICES -- 0.5%
59,600 Alternative Resources Corporation+... 1,676,250
------------
COMPUTER SOFTWARE -- 9.8%
117,300 Bell & Howell Holdings Company+...... 3,724,275
75,000 BMC Software, Inc.+.................. 5,962,500
30,500 CSG Systems International Inc.+...... 617,625
76,800 Harbinger Corporation+............... 1,920,000
71,300 HBO & Company........................ 4,759,275
23,000 Indus Group Inc.+.................... 460,000
97,400 Parametric Technology Corporation+... 4,809,125
55,000 PeopleSoft Inc.+..................... 4,578,750
117,300 SunGard Data Systems Inc.+........... 5,278,500
160,100 Techforce Corporation+............... 1,180,738
111,000 Transition Systems+.................. 2,331,000
------------
35,621,788
------------
ELECTRICAL EQUIPMENT -- 0.4%
20,000 Security Dynamics Technologies
Inc.+.............................. 1,435,000
------------
ELECTRONICS -- 5.7%
75,000 ADC Telecommunications Inc.+......... 4,800,000
146,000 Input/Output Inc.+................... 4,343,500
92,000 Rational Software Corporation+....... 3,139,500
118,400 Sanmina Corporation+................. 4,765,600
80,000 Symbol Technologies Inc.+............ 3,680,000
------------
20,728,600
------------
ENVIRONMENTAL -- 2.3%
75,000 Millipore Corporation................ 2,962,500
175,100 USA Waste Service Inc.+.............. 5,515,650
------------
8,478,150
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
EXPLORATION AND DRILLING -- 3.4%
125,000 BJ Services Inc.+.................... $ 4,531,250
79,500 Pogo Producing Company............... 2,842,125
146,000 Smith International Inc.+............ 5,128,250
------------
12,501,625
------------
FINANCIAL SERVICES -- 4.9%
100,000 First USA Inc. ...................... 5,537,500
106,100 First USA Payment Technology Inc.+... 4,310,313
55,000 Franklin Resources Inc. ............. 3,650,625
105,000 Green Tree Financial Corporation..... 4,121,250
------------
17,619,688
------------
INSURANCE -- 1.4%
45,000 American Re Corporation.............. 2,857,500
52,900 Vesta Insurance Group................ 2,030,037
------------
4,887,537
------------
MEDIA -- 0.6%
37,000 Gartner Group Inc., Class A+......... 1,258,000
108,100 Katz Media Group Inc.+............... 959,387
------------
2,217,387
------------
MEDICAL PRODUCTS AND SUPPLIES -- 1.9%
70,000 Acuson Corporation+.................. 1,198,750
118,000 Advanced Technology
Laboratories Inc.+................. 3,776,000
80,000 Nellcor Inc.+........................ 1,760,000
------------
6,734,750
------------
MEDICAL SERVICES -- 8.4%
74,500 CRA Managed Care Inc.+............... 4,023,000
90,000 Genesis Health Ventures+............. 2,531,250
47,000 HCIA Inc.+........................... 2,820,000
242,700 Health Management Associates Inc.,
Class A+........................... 6,037,162
250,000 Mid Atlantic Medical Services+....... 3,187,500
30,800 Pediatrix Medical Group Inc.+........ 1,543,850
145,000 PhyCor Inc.+......................... 5,519,063
138,500 Sierra Health Services Inc.+......... 4,760,937
------------
30,422,762
------------
OIL -- DOMESTIC -- 3.1%
185,000 Enron Oil & Gas Company.............. 4,601,875
178,000 Parker & Parsley Petroleum Company... 4,650,250
83,400 Union Texas Petroleum Holdings
Inc. .............................. 1,803,525
------------
11,055,650
------------
OIL SERVICES -- 1.0%
93,600 Camco International Companies
Inc. .............................. 3,498,300
------------
PRINTING AND PUBLISHING -- 3.0%
151,400 Belo (A.H.) Corporation, Class A..... 5,223,300
106,000 Catalina Marketing Corporation+...... 5,644,500
------------
10,867,800
------------
PROFESSIONAL SERVICES -- 1.8%
90,000 Franklin Quest Company+.............. 1,687,500
190,000 Personnel Group of America, Inc.+.... 4,940,000
------------
6,627,500
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 25
NATIONS FUND
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
RECREATION -- 4.7%
127,000 Electronic Arts+..................... $ 4,746,625
157,500 Infinity Broadcasting Corporation,
Class A+........................... 4,961,250
46,200 Penske Motorsports Inc.+............. 1,622,775
65,500 Speedway Motorsports, Inc.+.......... 1,719,375
335,000 Station Casinos Inc.+................ 4,020,000
------------
17,070,025
------------
RESTAURANTS AND LODGING -- 6.6%
174,600 Apple South, Inc. ................... 2,335,275
30,000 HFS Inc.+............................ 2,006,250
250,000 La Quinta Inns Inc. ................. 4,875,000
115,000 Lone Star Steakhouse & Saloon+....... 3,500,313
100,000 Papa John's International Inc. ...... 5,250,000
105,000 Promus Hotel Corporation+............ 2,966,250
112,000 Sonic Corporation+................... 2,842,000
------------
23,775,088
------------
RETAIL -- DISCOUNT -- 0.6%
71,250 Dollar General Corporation........... 2,217,656
------------
RETAIL -- SPECIALTY -- 2.8%
200,000 Bed Bath & Beyond Inc.+.............. 5,475,000
66,100 Cannondale Corporation+.............. 1,536,825
121,000 Garden Ridge Corporation+............ 2,072,125
20,000 Just For Feet Inc.+.................. 1,002,500
------------
10,086,450
------------
SEMICONDUCTORS -- 2.9%
105,000 Altera Corporation+.................. 5,315,625
230,000 KLA Instruments Corporation+......... 5,175,000
------------
10,490,625
------------
TELECOMMUNICATIONS -- 7.2%
46,000 Adtran Inc.+......................... 2,311,500
56,000 Ascend Communications Inc.+.......... 3,703,000
26,000 Cascade Communications
Corporation+....................... 2,119,000
135,100 InterCel Inc.+....................... 2,837,100
220,000 NEXTEL Communications Inc.,
Class A+........................... 4,070,000
58,000 PageMart Wireless Inc.+.............. 558,250
170,300 Palmer Wireless Inc., Class A+....... 3,012,182
49,000 QUALCOMM Inc.+....................... 2,082,500
77,800 Tellabs Inc.+........................ 5,494,625
------------
26,188,157
------------
VALUE
SHARES (NOTE 1)
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TRANSPORTATION -- AIRLINES -- 1.4%
220,500 Comair Holdings Inc. ................ $ 5,181,750
------------
TRANSPORTATION -- RAILROADS -- 0.5%
75,000 Railtex, Inc. ....................... 1,785,938
------------
OTHER -- 1.2%
29,900 Octel Communications Corporation+.... 867,100
55,000 USA Detergents Inc.+................. 2,186,250
15,800 Veritas Software Corporation+........ 1,117,850
------------
4,171,200
------------
TOTAL COMMON STOCKS
(Cost $257,276,611)................ 323,722,488
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 10.5%
(Cost $37,830,000)
$37,830,000 Agreement with Smith Barney,
5.680%
dated 09/30/96, to be
repurchased at
$37,835,969 on 10/01/96,
collateralized by: $38,590,542
U.S. Government Agency
Securities, 4.730% -- 9.375% due
12/23/96 -- 07/15/43............ 37,830,000
============
TOTAL INVESTMENTS
(Cost $295,106,611*).................. 99.8% 361,552,488
OTHER ASSETS AND
LIABILITIES (NET)..................... 0.2 852,656
----- ------------
NET ASSETS.............................. 100.0% $362,405,144
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 26
NATIONS FUND
Nations Managed Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- 98.2%
AEROSPACE AND DEFENSE -- 2.1%
900 Boeing Company....................... $ 85,050
300 General Dynamics Corporation......... 20,663
900 Lockheed Martin Corporation.......... 81,113
1,300 McDonnell Douglas Corporation........ 68,250
300 Northrop Grumman Corporation......... 24,075
1,300 Raytheon Company..................... 72,313
400 TRW Inc. ............................ 37,200
600 United Technologies Corporation...... 72,075
-----------
460,739
-----------
APPAREL AND TEXTILES -- 0.6%
600 Liz Claiborne Inc. .................. 22,350
700 Nike Inc., Class B................... 85,050
300 V.F. Corporation..................... 18,038
-----------
125,438
-----------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 2.5%
4,800 Chrysler Corporation................. 137,400
5,500 Ford Motor Company................... 171,875
4,200 General Motors Corporation........... 201,600
414 LucasVarity Plc, ADR................. 16,301
200 Paccar, Inc. ........................ 10,950
-----------
538,126
-----------
AUTOMOBILE PARTS
MANUFACTURERS -- 0.6%
600 Dana Corporation..................... 18,150
400 Eaton Corporation.................... 24,150
500 Echlin Inc. ......................... 15,688
600 Genuine Parts Company................ 26,250
700 Goodyear Tire & Rubber Company....... 32,288
300 Snap-On Inc. ........................ 9,638
-----------
126,164
-----------
BANKS -- 8.6%
700 Ahmanson (H.F.) & Company............ 19,600
2,100 Banc One Corporation................. 86,100
1,900 BankAmerica Corporation.............. 156,037
900 Bank of Boston Corporation........... 52,088
2,100 Bank of New York Inc. ............... 61,687
400 Bankers Trust N.Y. Corporation....... 31,450
1,200 Barnett Banks Inc. .................. 40,500
800 Boatmen's Bancshares Inc. ........... 44,700
2,200 Chase Manhattan Corporation.......... 176,275
2,200 Citicorp............................. 199,375
500 Comerica Inc. ....................... 25,750
900 CoreStates Financial Corporation..... 38,925
700 Fifth Third Bancorp.................. 40,687
700 First Bank System, Inc. ............. 46,813
1,500 First Chicago Corporation NBD........ 67,875
1,400 First Union Corporation.............. 93,450
1,500 Fleet Financial Group Inc. .......... 66,750
1,400 KeyCorp (New)........................ 61,600
700 Mellon Bank Corporation.............. 41,475
800 Morgan (J.P.) & Company Inc. ........ 71,100
800 National City Corporation............ 33,700
1,900 Norwest Corporation.................. 77,663
1,900 PNC Bank Corporation................. 63,412
300 Republic New York Corporation........ 20,738
1,300 SunTrust Banks Inc. ................. 53,300
700 U.S. Bancorp......................... 27,650
1,000 Wachovia Corporation................. 49,500
400 Wells Fargo & Company................ 104,000
-----------
1,852,200
-----------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
BEVERAGES -- 3.1%
1,200 Anheuser-Busch Companies, Inc. ...... $ 45,150
100 Brown-Forman Corporation, Class B.... 3,913
9,400 Coca-Cola Company.................... 478,225
5,000 PepsiCo Inc. ........................ 141,250
-----------
668,538
-----------
BIO SPECIALTY PHARMACEUTICALS -- 0.4%
1,300 Amgen Inc.+.......................... 82,063
-----------
CHEMICALS -- BASIC -- 3.3%
500 Air Products & Chemicals Inc. ....... 29,125
1,300 Dow Chemical Company................. 104,325
2,600 du Pont (E.I.) de Nemours &
Company............................ 229,450
400 Eastman Chemical Company............. 23,350
200 Ecolab Inc. ......................... 6,750
200 FMC Corporation+..................... 13,575
300 Goodrich (B.F.) Company.............. 13,538
600 Hercules, Inc. ...................... 32,850
400 Mallinckrodt Group Inc. ............. 16,650
2,900 Monsanto Company..................... 105,850
100 Nalco Chemical Company............... 3,625
900 PPG Industries, Inc. ................ 48,938
700 Praxair Inc. ........................ 30,100
400 Rohm & Haas Company.................. 26,200
700 Union Carbide Corporation............ 31,938
-----------
716,264
-----------
CHEMICALS -- SPECIALTY -- 0.3%
300 Avery Dennison Corporation........... 16,650
200 Grace (W.R.) & Company............... 10,400
200 Great Lakes Chemical Corporation..... 11,400
700 Morton International Inc.,
Industries......................... 27,825
-----------
66,275
-----------
COAL, GAS AND PIPELINE -- 0.4%
600 Coastal Corporation.................. 24,750
900 Enron Corporation.................... 36,675
900 PanEnergy Corporation................ 31,162
-----------
92,587
-----------
COMMUNICATION EQUIPMENT -- 0.0%#
200 Andrew Corporation+.................. 9,975
-----------
COMPUTER RELATED -- 4.3%
200 Ceridian Corporation+................ 10,000
2,900 cisco Systems, Inc.+................. 179,981
1,400 COMPAQ Computer Corporation+......... 89,775
900 Digital Equipment Corporation+....... 32,175
1,200 EMC Corporation+..................... 27,150
4,700 Hewlett-Packard Company.............. 229,125
2,500 International Business Machines
Corporation........................ 311,250
900 Sun Microsystems Inc.+............... 55,912
-----------
935,368
-----------
COMPUTER SERVICES -- 0.4%
600 Automatic Data Processing Inc. ...... 26,175
800 Computer Associates International
Inc. .............................. 47,800
200 Computer Sciences Corporation+....... 15,375
-----------
89,350
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 27
NATIONS FUND
Nations Managed Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
COMPUTER SOFTWARE -- 2.1%
200 Cabletron Systems Inc.+.............. $ 13,650
2,700 Microsoft Corporation+............... 356,062
2,100 Oracle Systems Corporation+.......... 89,380
-----------
459,092
-----------
CONSTRUCTION -- 0.4%
500 Case Corporation..................... 24,375
400 Fluor Corporation.................... 24,600
300 Masco Corporation.................... 9,000
300 Owens-Corning Fiberglass
Corporation........................ 11,063
300 Sherwin-Williams Company............. 13,913
-----------
82,951
-----------
COSMETICS AND TOILETRY -- 1.5%
100 Clorox Company....................... 9,587
1,300 Gillette Company..................... 93,762
2,200 Procter & Gamble Company............. 214,500
-----------
317,849
-----------
DIVERSIFIED -- 1.7%
300 Alco Standard Corporation............ 14,963
1,300 AlliedSignal Inc. ................... 85,637
800 Corning Inc. ........................ 31,200
700 Loews Corporation.................... 54,162
1,400 Minnesota Mining & Manufacturing
Company............................ 97,825
800 Tenneco Inc. ........................ 40,100
400 Textron, Inc. ....................... 34,000
500 Whitman Corporation.................. 11,563
-----------
369,450
-----------
DRUGS -- 4.6%
2,800 American Home Products Corporation... 178,500
1,700 Bristol-Myers Squibb Company......... 163,838
2,500 Lilly (Eli) & Company................ 161,250
3,500 Merck & Company Inc. ................ 246,312
1,800 Pfizer, Inc. ........................ 142,425
800 Schering-Plough Corporation.......... 49,200
700 Warner-Lambert Company............... 46,200
-----------
987,725
-----------
ELECTRIC POWER -- 3.9%
900 American Electric Power Inc. ........ 36,563
800 Baltimore Gas & Electric Company..... 20,900
800 Carolina Power & Light Company....... 27,600
1,300 Central & South West Corporation..... 33,800
800 CINergy Corporation.................. 24,700
1,000 Consolidated Edison Company
New York Inc. ..................... 27,750
800 Dominion Resources Inc. ............. 30,200
700 DTE Energy Company................... 19,600
1,200 Duke Power Company................... 55,950
2,800 Edison International................. 50,050
1,500 Entergy Corporation, New............. 40,500
900 FPL Group Inc. ...................... 38,925
700 General Public Utilities
Corporation........................ 21,525
1,200 Houston Industries Inc. ............. 26,550
300 Northern States Power Corporation.... 13,987
1,000 Ohio Edison Company.................. 19,375
2,200 Pacific Gas & Electric Company....... 47,850
1,500 PacifiCorp........................... 30,937
1,200 PECO Energy Company.................. 28,500
900 PP&L Resources Inc. ................. 19,688
1,200 Public Service Enterprise Group...... 32,100
3,600 Southern Company..................... 81,450
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
ELECTRIC POWER -- (CONTINUED)
1,400 Texas Utilities Company.............. $ 55,475
1,300 Unicom Corporation................... 32,663
600 Union Electric Company............... 22,125
-----------
838,763
-----------
ELECTRICAL EQUIPMENT -- 2.9%
500 Emerson Electric Company............. 45,063
5,400 General Electric Company............. 491,400
300 General Instrument Corporation+...... 7,425
200 Grainger (W.W.) Inc. ................ 14,050
700 Honeywell, Inc. ..................... 44,188
200 Raychem Corporation.................. 15,000
-----------
617,126
-----------
ELECTRONICS -- 1.1%
1,200 AMP Inc. ............................ 46,500
1,000 Applied Materials Inc.+.............. 27,625
200 Harris Corporation................... 13,025
700 LSI Logic Corporation+............... 16,275
1,900 Motorola, Inc. ...................... 98,087
1,400 National Semiconductor
Corporation+....................... 28,175
300 Tektronix Inc. ...................... 12,263
-----------
241,950
-----------
ENVIRONMENTAL -- 0.9%
1,200 Browning-Ferris Industries Inc. ..... 30,000
200 Johnson Controls Inc. ............... 15,000
1,600 Laidlaw Inc., Class B................ 17,600
200 Millipore Corporation................ 7,900
800 Tyco International Ltd. ............. 34,500
2,600 WMX Technologies Inc. ............... 85,475
-----------
190,475
-----------
EXPLORATION AND DRILLING -- 0.1%
700 Burlington Resources Inc. ........... 31,062
-----------
FINANCIAL SERVICES -- 4.4%
2,200 American Express Company............. 101,750
800 American General Corporation......... 30,200
300 Beneficial Corporation............... 17,250
900 Dean Witter, Discover & Company...... 49,500
900 Federal Home Loan Mortgage
Corporation........................ 88,087
5,400 Federal National Mortgage
Association........................ 188,325
700 Green Tree Financial Corporation..... 27,475
500 Household International Inc. ........ 41,125
400 Marsh & McLennan Companies Inc. ..... 38,850
1,200 MBNA Corporation..................... 41,700
1,200 Merrill Lynch & Company Inc. ........ 78,750
900 Morgan Stanley Group, Inc. .......... 44,775
600 Salomon Inc. ........................ 27,375
400 Transamerica Corporation............. 27,950
3,000 Travelers Group Inc. ................ 147,375
-----------
950,487
-----------
FOOD PRODUCERS -- 2.5%
2,940 Archer-Daniels-Midland Company....... 56,595
1,400 ConAgra Inc. ........................ 68,950
800 CPC International Inc. .............. 59,900
700 General Mills Inc. .................. 42,263
800 Heinz (H.J.) Company................. 27,000
400 Hershey Foods Corporation............ 20,100
400 Pioneer Hi-Bred International........ 24,200
400 Ralston-Purina Group................. 27,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 28
NATIONS FUND
Nations Managed Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
FOOD PRODUCERS -- (CONTINUED)
2,600 Sara Lee Corporation................. $ 92,950
800 Unilever N.V., ADR................... 126,100
-----------
545,458
-----------
FOOD RETAILERS -- 0.6%
600 Albertson's, Inc. ................... 25,275
700 American Stores Company.............. 28,000
300 Giant Food Inc., Class A............. 10,200
700 Kroger Company+...................... 31,325
400 Supervalu Inc. ...................... 11,000
400 Sysco Corporation.................... 13,450
-----------
119,250
-----------
FURNITURE AND APPLIANCES -- 0.3%
200 Armstrong World Industries Inc. ..... 12,475
400 Black & Decker Corporation........... 16,600
800 Maytag Corporation................... 15,600
600 Newell Company....................... 18,000
200 Whirlpool Corporation................ 10,125
-----------
72,800
-----------
INSURANCE -- 3.5%
800 Aetna Life & Casualty Company........ 56,300
2,900 Allstate Corporation................. 142,825
2,200 American International Group,
Inc. .............................. 221,650
200 AON Corporation...................... 10,850
900 Chubb Corporation.................... 41,400
300 CIGNA Corporation.................... 35,963
400 General Re Corporation............... 56,700
500 Jefferson-Pilot Corporation.......... 25,875
600 Lincoln National Corporation Ltd. ... 26,325
200 MGIC Investment Corporation.......... 13,475
500 Providian Corporation................ 21,500
700 SAFECO Corporation................... 24,500
400 St. Paul Companies Inc. ............. 22,200
400 Torchmark Corporation................ 18,350
300 UNUM Corporation..................... 19,237
700 USF&G Corporation.................... 12,950
-----------
750,100
-----------
MACHINERY AND EQUIPMENT -- 1.5%
1,200 Caterpillar Inc. .................... 90,450
600 Cooper Industries Inc. .............. 25,950
200 Cummins Engine Inc. ................. 7,875
1,700 Deere & Company...................... 71,400
600 Dover Corporation.................... 28,650
300 Harnischfeger Industries Inc. ....... 11,325
600 Illinois Tool Works Inc. ............ 43,275
700 Ingersoll-Rand Company............... 33,250
400 Parker-Hannifin Corporation.......... 16,800
-----------
328,975
-----------
MEDICAL PRODUCTS AND SUPPLIES -- 2.1%
2,500 Abbott Laboratories.................. 123,125
200 Allergan, Inc. ...................... 7,625
200 Bard (C.R.) Inc. .................... 6,225
600 Baxter International Inc. ........... 28,050
600 Becton, Dickinson & Company.......... 26,550
300 Biomet, Inc.+........................ 4,913
400 Boston Scientific Corporation+....... 23,000
210 Fresenius Medical Care, ADR.......... 4,878
4,300 Johnson & Johnson.................... 220,375
400 United States Surgical Corporation... 17,000
-----------
461,741
-----------
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
MEDICAL SERVICES -- 0.9%
2,100 Columbia/HCA Healthcare
Corporation........................ $ 119,438
800 Humana Inc.+......................... 16,200
1,200 Tenet Healthcare Corporation+........ 26,700
900 United Healthcare Corporation........ 37,463
-----------
199,801
-----------
METALS AND MINING -- 0.8%
1,200 Alcan Aluminum Ltd. ................. 36,000
900 Aluminum Company of America.......... 53,100
600 Cyprus Amax Minerals Company......... 12,900
600 Inco Ltd. ........................... 18,450
400 Phelps Dodge Corporation............. 25,650
500 Reynolds Metals Company.............. 25,562
-----------
171,662
-----------
OFFICE EQUIPMENT -- 0.7%
700 Moore Corporation Ltd. .............. 12,863
800 Pitney Bowes Inc. ................... 42,100
1,600 Xerox Corporation.................... 85,800
-----------
140,763
-----------
OIL -- DOMESTIC -- 2.5%
500 Amerada Hess Corporation............. 26,437
2,400 Amoco Corporation.................... 168,900
400 Ashland Oil, Inc. ................... 15,900
700 Atlantic Richfield Company........... 89,250
300 Kerr-McGee Corporation............... 18,263
200 Louisiana Land & Exploration
Company............................ 10,525
1,800 Occidental Petroleum Corporation..... 42,075
500 Oryx Energy Company+................. 8,875
1,600 Phillips Petroleum Company........... 68,400
1,500 Unocal Corporation................... 54,000
1,900 USX-Marathon Group................... 41,087
-----------
543,712
-----------
OIL -- INTERNATIONAL -- 6.5%
3,000 Chevron Corporation.................. 187,875
5,800 Exxon Corporation.................... 482,850
1,800 Mobil Corporation.................... 208,350
2,400 Royal Dutch Petroleum Company, ADR... 374,700
1,600 Texaco Inc. ......................... 147,200
-----------
1,400,975
-----------
OIL SERVICES -- 1.0%
900 Baker Hughes Inc. ................... 27,337
900 Dresser Industries, Inc. ............ 26,775
700 Halliburton Company.................. 36,137
400 Rowan Companies Inc.+................ 7,450
1,300 Schlumberger Ltd. ................... 109,850
300 Western Atlas, Inc.+................. 18,675
-----------
226,224
-----------
PAPER AND FOREST PRODUCTS -- 2.0%
300 Boise Cascade Corporation............ 10,200
500 Champion International Corporation... 22,938
500 Georgia-Pacific Corporation.......... 39,562
1,400 International Paper Company.......... 59,500
1,500 Kimberly-Clark Corporation........... 132,188
300 Mead Corporation..................... 17,587
300 Temple-Inland Inc. .................. 15,825
400 Union Camp Corporation............... 19,550
600 Westvaco Corporation................. 17,775
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 29
NATIONS FUND
Nations Managed Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
PAPER AND FOREST PRODUCTS -- (CONTINUED)
1,300 Weyerhaeuser Company................. $ 59,962
400 Willamette Industries Inc. .......... 26,200
-----------
421,287
-----------
PHOTO AND OPTICAL -- 0.6%
1,600 Eastman Kodak Company................ 125,600
-----------
PRINTING AND PUBLISHING -- 1.0%
600 American Greetings Corporation,
Class A............................ 17,175
300 Deluxe Corporation................... 11,325
300 Donnelley (R.R.) & Sons Company...... 9,675
700 Dow Jones & Company Inc. ............ 25,900
400 Dun & Bradstreet Corporation......... 23,850
300 Gannet Inc. ......................... 21,112
300 Harcourt General Inc. ............... 16,575
400 McGraw-Hill Companies, Inc. ......... 17,050
500 New York Times Company, Class A...... 16,875
500 Times Mirror Company, Class A........ 22,250
300 Tribune Company...................... 23,400
-----------
205,187
-----------
PROFESSIONAL SERVICES -- 0.3%
200 Interpublic Group Companies Inc. .... 9,450
1,400 Service Corporation International.... 42,350
200 Viad Corporation..................... 2,800
-----------
54,600
-----------
RECREATION -- 1.0%
600 Bally Entertainment Corporation...... 17,025
700 Brunswick Corporation................ 16,800
2,200 Disney (Walt) Company................ 139,425
300 Harrah's Entertainment Inc. ......... 5,588
400 Hasbro Inc. ......................... 14,850
200 King World Productions Inc.+......... 7,375
600 Mattel, Inc. ........................ 15,525
-----------
216,588
-----------
RESTAURANTS AND LODGING -- 1.0%
1,300 Darden Restaurants Inc. ............. 11,212
800 Hilton Hotels Corporation............ 22,700
600 ITT Corporation...................... 26,175
600 Marriot International Inc. .......... 33,075
2,200 McDonald's Corporation............... 104,225
600 Wendy's International Inc. .......... 12,900
-----------
210,287
-----------
RETAIL -- DISCOUNT -- 1.4%
1,300 Kmart Stores Corporation............. 13,325
700 Rite Aid Corporation................. 25,375
500 TJX Companies Inc. .................. 17,937
1,400 Toys R Us Inc.+...................... 40,775
7,400 Wal-Mart Stores Inc. ................ 195,175
800 Woolworth Corporation+............... 16,500
-----------
309,087
-----------
RETAIL -- GENERAL -- 1.6%
1,300 Dayton Hudson Corporation............ 42,900
700 Dillard Department Stores Inc., Class
A.................................. 22,575
1,300 Federated Department Stores Inc.+.... 43,387
1,400 May Department Stores Company........ 68,075
200 Mercantile Stores Inc. .............. 10,800
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
RETAIL -- GENERAL -- (CONTINUED)
1,200 Penney (J.C.) Company Inc. .......... $ 64,950
1,000 Price/Costco Inc.+................... 20,500
1,800 Sears, Roebuck & Company............. 80,550
-----------
353,737
-----------
RETAIL -- SPECIALTY -- 0.7%
200 Circuit City Stores Inc. ............ 7,225
1,600 Gap Inc. ............................ 46,200
600 Limited Inc. ........................ 11,475
600 Melville Corporation................. 26,475
400 Nordstrom, Inc. ..................... 15,200
400 Tandy Corporation.................... 16,150
500 Walgreen Company..................... 18,500
-----------
141,225
-----------
SAVINGS AND LOANS -- 0.2%
400 Golden West Financial Corporation.... 23,350
800 Great Western Financial
Corporation........................ 21,200
-----------
44,550
-----------
SEMICONDUCTORS -- 2.2%
1,300 Advanced Micro Devices Inc. ......... 19,175
3,800 Intel Corporation.................... 362,663
1,200 Micron Technology, Inc. ............. 36,600
1,000 Texas Instruments Inc. .............. 55,125
-----------
473,563
-----------
STEEL -- 0.2%
500 Nucor Corporation.................... 25,375
400 USX-U.S. Steel Group................. 11,400
-----------
36,775
-----------
TELECOMMUNICATIONS -- 0.4%
1,300 Northern Telecommunications, Ltd. ... 75,075
200 Tellabs, Inc.+....................... 14,125
-----------
89,200
-----------
TOBACCO -- 1.9%
900 American Brands Inc. ................ 38,025
3,900 Philip Morris Companies Inc. ........ 350,025
1,000 UST Inc. ............................ 29,625
-----------
417,675
-----------
TRANSPORTATION -- AIRLINES -- 0.4%
500 AMR Corporation+..................... 39,812
400 Delta Air Lines, Inc. ............... 28,800
400 Southwest Airlines Company........... 9,150
-----------
77,762
-----------
TRANSPORTATION -- RAILROADS -- 1.4%
800 Burlington Northern Santa Fe Inc. ... 67,500
500 Conrail Inc. ........................ 36,187
1,400 CSX Corporation...................... 70,700
200 Dial Corporation..................... 2,750
600 Norfolk Southern Corporation......... 54,825
900 Union Pacific Corporation............ 65,925
-----------
297,887
-----------
TRUCKING AND SHIPPING -- 0.2%
300 Federal Express Corporation+......... 23,775
300 Ryder Systems Inc. .................. 8,887
-----------
32,662
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS FUND
Nations Managed Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
UTILITIES -- NATURAL GAS -- 0.7%
300 Columbia Gas Systems Inc. ........... $ 16,800
700 Consolidated Natural Gas Company..... 37,538
300 NICOR Inc. .......................... 10,125
800 NorAm Energy Corporation............. 11,900
700 Pacific Enterprises.................. 21,175
400 Sonat, Inc. ......................... 17,700
600 Williams Companies Inc. ............. 30,600
-----------
145,838
-----------
UTILITIES -- TELEPHONE -- 7.5%
900 ALLTEL Corporation................... 25,087
2,500 Ameritech Corporation................ 131,562
7,400 AT&T Corporation..................... 386,650
2,000 Bell Atlantic Corporation............ 119,750
4,600 BellSouth Corporation................ 170,200
4,500 GTE Corporation...................... 173,250
4,200 MCI Communications Corporation....... 107,625
2,000 NYNEX Corporation.................... 87,000
2,100 Pacific Telesis Group................ 70,612
2,800 SBC Communications Inc. ............. 134,750
2,700 Sprint Corporation................... 104,962
2,200 U.S. West Inc. ...................... 65,450
2,100 WorldCom Inc.+....................... 44,888
-----------
1,621,786
-----------
OTHER -- 0.4%
1,400 Rockwell International Corporation... 78,925
577 Teledyne Inc. ....................... 13,055
-----------
91,980
-----------
TOTAL COMMON STOCKS
(Cost $19,767,872)................. 21,178,754
===========
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C>
------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.2%
(Cost $262,000)
$262,000 Agreement with Smith Barney, 5.680%
dated 09/30/96, to be repurchased
at $262,041 on 10/01/96,
collateralized by: $267,267 U.S.
Government Agency Securities,
4.730% -- 9.375% due
12/23/96 -- 07/15/43............... $ 262,000
===========
TOTAL INVESTMENTS
(Cost $20,029,872*)................... 99.4% 21,440,754
OTHER ASSETS AND LIABILITIES (NET)...... 0.6 128,490
----- -----------
NET ASSETS.............................. 100.0% $21,569,244
===== ===========
</TABLE>
- ---------------
<TABLE>
<C> <S>
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1% of net assets.
</TABLE>
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY DISCIPLINED CAPITAL EMERGING MANAGED
ASSETS INCOME VALUE INDEX EQUITY GROWTH GROWTH INDEX
FUND FUND FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at
value (Note 1).
See
accompanying
schedules:
Securities..... $216,808,805 $348,856,187 $1,236,658,937 $447,716,520 $142,849,636 $763,309,350 $323,722,488 $21,178,754
Repurchase
agreements... 18,776,000 20,290,000 61,433,000 3,613,000 2,235,000 25,268,000 37,830,000 262,000
-------------- ------------ -------------- -------------- ----------- ----------- ------------ -----------
Total
investments.... 235,584,805 369,146,187 1,298,091,937 451,329,520 145,084,636 788,577,350 361,552,488 21,440,754
Cash............. 672 8,996 730 558 -- 18,423 -- 4,878
Dividends
receivable..... 430,931 755,656 2,346,671 839,367 202,459 659,327 71,274 43,282
Interest
receivable..... 1,189,364 918,228 9,693 570 353 3,987 5,969 40
Receivable for
Fund shares
sold........... 8,417 1,611,329 18,120,235 1,906,151 606,669 4,682,499 793,841 32,300
Receivable for
investment
securities
sold........... 4,595,907 5,111,044 15,426,097 734,888 -- 6,345,936 1,268,880 --
Receivable from
investment
advisor........ -- -- -- -- -- 4,504 -- 7,305
Unamortized
organization
costs (Note
6)............. 4,032 -- -- 3,250 -- 4,036 5,319 --
Variation
margin/due to
broker (Note
1)............. -- -- -- 525 -- -- -- --
Prepaid expenses
and other
assets......... 622 4,629 2,916 -- 7,263 6,594 817 53,303
-------------- ------------ -------------- -------------- ----------- ----------- ------------ -----------
Total Assets... 241,814,750 377,556,069 1,333,998,279 454,814,829 145,901,380 800,302,656 363,698,588 21,581,862
-------------- ------------ -------------- -------------- ----------- ----------- ------------ -----------
LIABILITIES:
Due to
custodian...... -- -- -- -- 6,474 -- 25,131 --
Payable for Fund
shares
redeemed....... -- 1,980,770 9,190,447 1,913,029 1,766,729 17,525,180 923,631 --
Payable for
investment
securities
purchased...... 6,492,800 2,730,864 29,328,590 1,091,070 -- 5,991,446 -- --
Investment
advisory fee
payable (Note
2)............. 143,379 205,908 779,786 50,771 87,354 424,691 216,153 --
Administration
fee payable
(Note 2)....... 19,117 30,208 103,971 36,217 11,647 56,625 28,820 1,735
Shareholder
servicing and
distribution
fees payable
(Note 3)....... 42,292 75,718 74,747 862 18,274 43,147 33,758 2
Transfer agent
fees payable
(Note 2)....... 12,454 19,872 79,693 3,404 11,944 37,741 23,101 1,092
Custodian fees
payable (Note
2)............. 10,473 11,743 27,894 14,741 4,768 22,695 11,561 8,060
Accrued
Trustees'/Directors'
fees and
expenses (Note
2)............. 9,586 12,141 48,210 11,477 5,523 34,006 13,437 484
Accrued expenses
and other
payables....... 8,242 7,779 36,377 11,774 -- 31,444 17,852 1,245
-------------- ------------ -------------- -------------- ----------- ----------- ------------ -----------
Total
Liabilities... 6,738,343 5,075,003 39,669,715 3,133,345 1,912,713 24,166,975 1,293,444 12,618
-------------- ------------ -------------- -------------- ----------- ----------- ------------ -----------
NET ASSETS....... $235,076,407 $372,481,066 $1,294,328,564 $451,681,484 $143,988,667 $776,135,681 $362,405,144 $21,569,244
============= ============= =============== ============= ============= ============ ============ ===========
Investments, at
cost........... $233,140,350 $345,058,288 $1,067,678,243 $391,419,782 $126,354,083 $637,081,430 $295,106,611 $20,029,872
============= ============= =============== ============= ============= ============ ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 32
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY DISCIPLINED CAPITAL EMERGING MANAGED
ASSETS INCOME VALUE INDEX EQUITY GROWTH GROWTH INDEX
FUND FUND FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------
NET ASSETS
CONSIST OF:
Undistributed net
investment
income/(accumulated
net investment
loss).......... $ 77,785 $ 161,349 $ 178,858 $ 156,139 $ 90,787 $ 137,989 $ (698,130) $ 2,727
Accumulated net
realized gain/
(distributions
in excess of
net realized
gain) on
investments and
futures
contracts...... 31,194,648 62,550,674 97,423,591 (80,279) 7,659,140 157,979,128 38,368,246 285
Net unrealized
appreciation of
investments,
futures
contracts and
foreign
currency
transactions... 2,444,455 24,087,899 230,413,694 59,922,388 18,730,553 151,495,920 66,445,877 1,410,882
Paid-in
capital........ 201,359,519 285,681,144 966,312,421 391,683,236 117,508,187 466,522,644 258,289,151 20,155,350
------------ ------------ -------------- ------------ ------------ ------------ ------------ -----------
$235,076,407 $372,481,066 $1,294,328,564 $451,681,484 $143,988,667 $776,135,681 $362,405,144 $21,569,244
============ ============ ============== ============ ============ ============ ============ ===========
NET ASSETS:
Primary A
Shares......... $159,570,458 $216,872,242 $1,118,232,978 $450,127,414 $117,248,163 $700,138,512 $311,603,997 $21,518,963
============ ============ ============== ============ ============ ============ ============ ===========
Primary B
Shares......... $ 2,507,710 $ 1,797,515 $ 16,416,887 $ 1,414,720 $ 961,113 $ 7,169,982 $ 443,404 $ --
============ ============ ============== ============ ============ ============ ============ ===========
Investor A
Shares......... $ 7,157,982 $ 43,671,195 $ 61,536,873 $ 139,350 $ 6,607,249 $ 21,278,288 $ 11,786,135 $ 50,281
============ ============ ============== ============ ============ ============ ============ ===========
Investor C
Shares......... $ 1,254,167 $ 4,857,575 $ 5,628,453 $ -- $ 323,224 $ 4,708,157 $ 1,299,949 $ --
============ ============ ============== ============ ============ ============ ============ ===========
Investor N
Shares......... $ 64,586,090 $105,282,539 $ 92,513,373 $ -- $ 18,848,918 $ 42,840,742 $ 37,271,659 $ --
============ ============ ============== ============ ============ ============ ============ ===========
SHARES
OUTSTANDING:
Primary A
Shares......... 13,245,039 15,760,721 63,740,651 31,076,491 6,367,266 48,395,037 20,329,637 2,009,811
============ ============ ============== ============ ============ ============ ============ ===========
Primary B
Shares......... 208,246 130,626 935,719 97,645 52,205 495,597 28,953 --
============ ============ ============== ============ ============ ============ ============ ===========
Investor A
Shares......... 595,031 3,181,328 3,507,129 9,634 359,407 1,473,165 776,945 4,695
============ ============ ============== ============ ============ ============ ============ ===========
Investor C
Shares......... 104,629 351,704 322,767 -- 17,626 329,579 88,018 --
============ ============ ============== ============ ============ ============ ============ ===========
Investor N
Shares......... 5,377,306 7,674,437 5,289,238 -- 1,036,543 2,996,691 2,521,705 --
============ ============ ============== ============ ============ ============ ============ ===========
PRIMARY A SHARES:
Net asset value,
offering and
redemption
price per
share.......... $12.05 $13.76 $17.54 $14.48 $18.41 $14.47 $15.33 $10.71
====== ====== ====== ====== ====== ====== ====== ======
PRIMARY B SHARES:
Net asset value,
offering and
redemption
price per
share.......... $12.04 $13.76 $17.54 $14.49 $18.41 $14.47 $15.31 N/A
====== ====== ====== ====== ====== ====== ====== ======
INVESTOR A
SHARES:
Net asset value,
offering and
redemption
price per
share.......... $12.03 $13.73 $17.55 $14.46 $18.38 $14.44 $15.17 $10.71
====== ====== ====== ====== ====== ====== ====== ======
INVESTOR C
SHARES:
Net asset value
and offering
price per
share*......... $11.99 $13.81 $17.44 N/A $18.34 $14.29 $14.77 N/A
====== ====== ====== ====== ====== ====== ====== ======
INVESTOR N
SHARES:
Net asset value,
offering and
redemption
price per
share.......... $12.01 $13.72 $17.49 N/A $18.18 $14.30 $14.78 N/A
====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 33
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY DISCIPLINED CAPITAL EMERGING MANAGED
ASSETS INCOME VALUE INDEX EQUITY GROWTH GROWTH INDEX
FUND FUND FUND FUND FUND FUND FUND FUND(a)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends (Net of foreign
withholding taxes of
$10,164, $35,063, $0,
$7,021, $0, $0, $0, and
$36, respectively)....... $ 1,917,158 $ 5,226,218 $14,097,640 $ 3,902,939 $ 1,139,525 $ 4,844,027 $ 396,905 $ 93,264
Interest................... 3,212,328 2,974,779 1,451,804 423,667 104,692 650,640 841,821 2,364
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Total investment
income............. 5,129,486 8,200,997 15,549,444 4,326,606 1,244,217 5,494,667 1,238,726 95,628
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory fee
(Note 2)................. 890,514 1,333,948 4,549,828 839,437 527,765 2,933,154 1,336,523 17,461
Administration fee (Note
2)....................... 118,735 197,190 606,644 167,887 70,369 391,087 178,203 3,492
Registration and filing
fees..................... 16,910 22,355 16,080 2,705 17,940 18,262 18,584 836
Transfer agent fees (Note
2)....................... 69,639 113,662 356,363 4,802 46,302 216,029 107,796 1,092
Custodian fees (Note 2).... 31,557 38,866 83,035 105,238 14,516 65,076 35,697 8,060
Legal and audit fees....... 21,402 21,167 77,632 23,142 16,188 47,728 27,521 4,259
Trustees'/Directors' fees
and expenses
(Note 2)................. 6,585 5,645 34,622 10,606 3,886 21,343 9,839 549
Amortization of
organization costs (Note
6)....................... 2,017 1,581 -- 750 -- 2,017 2,279 --
Other...................... 17,359 22,746 82,806 24,192 11,803 42,210 24,362 1,163
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Subtotal............... 1,174,718 1,757,160 5,807,010 1,178,759 708,769 3,736,906 1,740,804 36,912
Shareholder servicing and
distribution fees (Note
3):
Primary B Shares......... 1,138 1,586 9,957 1,178 437 4,223 415 --
Investor A Shares........ 8,547 52,753 71,605 466 7,457 23,844 11,864 3
Investor C Shares........ 2,967 11,492 12,101 -- 782 9,554 2,593 --
Investor N Shares........ 242,462 390,798 338,018 -- 92,930 206,934 181,180 --
Fees waived by investment
adviser (Note 2)......... -- -- -- (591,161) -- -- -- (12,187)
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Total expenses....... 1,429,832 2,213,789 6,238,691 589,242 810,375 3,981,461 1,936,856 24,728
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
NET INVESTMENT
INCOME/(LOSS)............ 3,699,654 5,987,208 9,310,753 3,737,364 433,842 1,513,206 (698,130) 70,900
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS (NOTES 1 AND
4):
Net realized gain/(loss)
from:
Security transactions.... 17,419,230 42,128,272 67,891,281 (1,336,678) 7,689,048 94,776,660 24,221,868 285
Forward foreign currency
contracts and foreign
currency
transactions........... -- 191 -- (17) -- -- -- --
Futures contracts........ -- -- -- 1,296,095 -- -- -- --
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Net realized gain/(loss) on
investments
during the period........ 17,419,230 42,128,463 67,891,281 (40,600) 7,689,048 94,776,660 24,221,868 285
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Change in unrealized
appreciation/(depreciation)
of:
Securities............... (9,577,259) (22,988,442) 178,297 19,407,152 1,977,974 (13,867,975) 7,736,794 1,410,882
Futures contracts........ -- -- -- 18,175 -- -- -- --
Foreign currency and
other assets........... -- (81) -- -- -- -- -- --
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Net unrealized
appreciation/(depreciation)
of investments during the
period................... (9,577,259) (22,988,523) 178,297 19,425,327 1,977,974 (13,867,975) 7,736,794 1,410,882
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
Net realized and unrealized
gain on investments...... 7,841,971 19,139,940 68,069,578 19,384,727 9,667,022 80,908,685 31,958,662 1,411,167
------------ ----------- ------------ ----------- ----------- ----------- ----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS............... $11,541,625 $25,127,148 $77,380,331 $23,122,091 $10,100,864 $82,421,891 $31,260,532 $1,482,067
=========== =========== =========== =========== =========== =========== =========== ==========
</TABLE>
- ---------------
(a) The Nations Managed Index Fund commenced operations on July 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 34
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY DISCIPLINED CAPITAL EMERGING MANAGED
ASSETS INCOME VALUE INDEX EQUITY GROWTH GROWTH INDEX
FUND FUND FUND FUND FUND FUND FUND FUND(a)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------
Net investment
income/(loss)... $ 3,699,654 $ 5,987,208 $ 9,310,753 $ 3,737,364 $ 433,842 $ 1,513,206 $ (698,130) $ 70,900
Net realized
gain/(loss)
on
investments... 17,419,230 42,128,463 67,891,281 (40,600) 7,689,048 94,776,660 24,221,868 285
Change in
unrealized
appreciation/
(depreciation)
of
investments.. (9,577,259) (22,988,523) 178,297 19,425,327 1,977,974 (13,867,975) 7,736,794 1,410,882
------------ ------------ -------------- ------------ ------------ ------------ ------------ -----------
Net increase in
net assets
resulting
from
operations... 11,541,625 25,127,148 77,380,331 23,122,091 10,100,864 82,421,891 31,260,532 1,482,067
Distributions
to
shareholders
from net
investment
income:
Primary A
Shares..... (2,752,203) (3,793,621) (8,541,150) (3,641,750) (417,822) (1,493,864) -- (68,014)
Primary B
Shares..... (17,437) (9,955) (29,860) (3,762) (335) -- -- --
Investor A
Shares..... (110,634) (695,023) (399,949) (4,409) (15,192) (20,940) -- (159)
Investor C
Shares..... (16,965) (69,593) (28,735) -- -- -- -- --
Investor N
Shares..... (858,364) (1,421,657) (392,509) -- -- -- -- --
Distributions
to
shareholders
from net
realized gain
on
investments:
Primary A
Shares..... -- -- -- -- -- -- (40,622) --
Primary B
Shares..... -- -- -- -- -- -- (52) --
Investor A
Shares..... -- -- -- -- -- -- (1,543) --
Investor C
Shares..... -- -- -- -- -- -- (165) --
Investor N
Shares..... -- -- -- -- -- -- (5,068) --
Net
increase/(decrease)
in net assets
from Fund
share
transactions:
Primary A
Shares..... (9,982,644) (78,462,614) 60,290,604 238,317,642 (7,133,842) (215,032,702) (11,395,845) 20,104,928
Primary B
Shares..... 2,476,343 1,729,671 16,012,020 1,390,171 934,007 6,905,804 425,108 --
Investor A
Shares..... 679,045 (900,490) 3,911,208 18,861 1,438,545 1,449,347 3,108,051 50,412
Investor C
Shares..... 22,695 45,125 688,936 -- 17,747 766,931 274,179 --
Investor N
Shares..... (3,332,571) (3,453,449) (1,354,215) -- (822,060) (1,172,659) (710,258) --
------------ ------------ -------------- ------------ ------------ ------------ ------------ -----------
Net
increase/(decrease)
in
net assets... (2,351,110) (61,904,458) 147,536,681 259,198,844 4,101,912 (126,176,192) 22,914,317 21,569,234
NET ASSETS:
Beginning of
period....... 237,427,517 434,385,524 1,146,791,883 192,482,640 139,886,755 902,311,873 339,490,827 10
------------ ------------ -------------- ------------ ------------ ------------ ------------ -----------
End of
period....... $235,076,407 $372,481,066 $1,294,328,564 $451,681,484 $143,988,667 $776,135,681 $362,405,144 $21,569,244
============ ============ ============== ============ ============ ============ ============ ===========
Undistributed
net
investment
income/(accumulated
net
investment
loss) at end
of period.... $ 77,785 $ 161,349 $ 178,858 $ 156,139 $ 90,787 $ 137,989 $ (698,130) $ 2,727
============ ============ ============== ============ ============ ============ ============ ===========
</TABLE>
- ----------------
(a) The Nations Managed Index Fund commenced operations on July 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 35
NATIONS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY DISCIPLINED CAPITAL EMERGING
ASSETS INCOME VALUE INDEX EQUITY GROWTH GROWTH
FUND(a) FUND(b) FUND(a) FUND(a) FUND(a) FUND(a) FUND(a)
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
Net investment
income/(loss)............... $ 2,118,467 $ 9,147,500 $ 4,594,009 $ 1,072,075 $ 310,095 $ 981,527 $ (182,595)
Net realized gain on
investments................. 14,455,458 30,003,301 29,675,624 834,284 48,753 47,329,423 15,075,593
Change in unrealized
appreciation/(depreciation)
of investments.............. (5,436,802) 29,185,348 42,735,333 8,778,670 3,017,862 (21,206,435) 15,018,790
------------ ------------- ------------ ------------ ----------- ------------ -----------
Net increase in net assets
resulting from operations... 11,137,123 68,336,149 77,004,966 10,685,029 3,376,710 27,104,515 29,911,788
Distributions to shareholders
from net investment income:
Primary A Shares............ (2,467,317) (8,311,787) (7,025,227) (1,562,737) (296,322) (1,419,446) --
Investor A Shares........... (80,162) (1,066,734) (305,858) (409) (8,626) (8,022) --
Investor C Shares........... (12,721) (92,984) (15,847) -- -- -- --
Investor N Shares........... (748,956) (2,055,224) (311,522) -- -- -- --
Distributions to shareholders
from net realized gain on
investments:
Primary A Shares............ (18,117,978) (7,936,013) (36,610,566) (1,570,449) (1,539,467) (71,272,931) (28,361,668)
Investor A Shares........... (595,662) (1,171,580) (1,870,135) (121) (47,181) (1,406,184) (619,620)
Investor C Shares........... (111,125) (131,358) (161,172) -- (4,072) (279,954) (87,424)
Investor N Shares........... (7,278,939) (2,870,773) (3,233,929) -- (232,704) (3,421,039) (3,491,112)
Net increase/(decrease) in net
assets from Fund share
transactions:
Primary A Shares............ 13,795,014 (29,783,390) 18,468,272 39,816,491 5,483,120 19,219,932 28,496,495
Investor A Shares........... 1,387,867 2,761,972 4,616,735 82,377 1,442,029 2,447,353 2,020,515
Investor C Shares........... 272,530 (156,882) 331,035 -- (41,211) 515,851 137,265
Investor N Shares........... 5,507,130 18,595,995 2,911,585 -- 1,386,136 2,510,778 3,081,992
------------ ------------- ------------ ------------ ----------- ------------ -----------
Net increase/(decrease) in net
assets...................... 2,686,804 36,117,391 53,798,337 47,450,181 9,518,412 (26,009,147) 31,088,231
NET ASSETS:
Beginning of period........... 234,740,713 398,268,133 1,092,993,546 145,032,459 130,368,343 928,321,020 308,402,596
------------ ------------- ------------ ------------ ----------- ------------ -----------
End of period................. $237,427,517 $434,385,524 $1,146,791,883 $192,482,640 $139,886,755 $902,311,873 $339,490,827
============ ============= ============ ============ =========== ============ ===========
Undistributed net investment
income at end of period..... $ 133,734 $ 163,990 $ 260,308 $ 68,696 $ 90,294 $ 139,587 $ ==
============ ============= ============ ============ =========== ============ ===========
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30. The numbers reflected are for the period December 1, 1995
through March 31, 1996.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31. The numbers reflected are for the period June 1, 1995 through March
31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 36
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
NATIONS BALANCED ASSETS FUND NATIONS EQUITY INCOME FUND
PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, 1996(c) PERIOD ENDED SEPTEMBER 30, 1996(c) PERIOD ENDED
(UNAUDITED) MARCH 31, 1996(a) (UNAUDITED) MARCH 31, 1996(b)
------------------------- ------------------------- --------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PRIMARY A
SHARES:
Sold.......... 1,825,822 $ 21,584,672 1,627,504 $ 19,005,092 2,215,458 $ 28,337,595 3,718,032 $ 46,321,022
Issued as
reinvestment
of dividends 213,455 2,542,061 1,460,066 16,518,081 140,083 1,897,485 496,722 6,174,413
Redeemed...... (2,887,795) (34,109,377) (1,866,524) (21,728,159) (8,143,564) (108,697,694) (6,643,314) (82,278,825)
---------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net increase/
(decrease)... (848,518) $ (9,982,644) 1,221,046 $ 13,795,014 (5,788,023) $ (78,462,614) (2,428,560) $(29,783,390)
========== ============ ========= =========== ========== ============== =========== ============
PRIMARY B
SHARES:
Sold.......... 209,884 $ 2,495,748 137,598 $ 1,825,323
Issued as
reinvestment
of
dividends... 15 183 75 1,032
Redeemed...... (1,653) (19,588) (7,047) (96,684)
---------- ----------- ---------- ------------
Net increase.. 208,246 $ 2,476,343 130,626 $ 1,729,671
========== ============ ========= ==============
INVESTOR A
SHARES:
Sold.......... 94,718 $ 1,122,612 79,026 $ 917,766 233,740 $ 3,127,801 563,095 $ 6,929,846
Issued as
reinvestment of
dividends... 8,993 106,958 59,206 669,237 46,936 634,846 172,862 2,135,967
Redeemed...... (46,780) (550,525) (16,962) (199,136) (349,298) (4,663,137) (503,098) (6,303,841)
---------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net increase/
(decrease)... 56,931 $ 679,045 121,270 $ 1,387,867 (68,622) $ (900,490) 232,859 $ 2,761,972
=========== ============= ========== ============ =========== =============== ========== =============
INVESTOR C
SHARES:
Sold.......... 22,131 $ 259,502 17,356 $ 204,071 58,214 $ 786,714 51,611 $ 639,206
Issued as
reinvestment of
dividends... 700 8,392 10,995 123,846 5,000 68,063 16,403 204,720
Redeemed...... (20,553) (245,199) (4,725) (55,387) (61,145) (809,652) (79,843) (1,000,808)
---------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net increase/
(decrease)... 2,278 $ 22,695 23,626 $ 272,530 2,069 $ 45,125 (11,829) $ (156,882)
========== ============ =========== ============ ========= ============== =========== =============
INVESTOR N
SHARES:
Sold.......... 75,006 $ 885,833 82,001 $ 983,660 140,415 $ 1,875,771 1,897,032 $ 23,134,481
Issued as
reinvestment of
dividends... 69,970 830,651 690,732 7,789,521 97,957 1,323,946 377,701 4,668,166
Redeemed...... (428,532) (5,049,055) (280,373) (3,266,051) (503,795) (6,653,166) (740,696) (9,206,652)
---------- ----------- ---------- ----------- ---------- ------------ ---------- -----------
Net increase/
(decrease)... (283,556) $ (3,332,571) 492,360 $ 5,507,130 (265,423) $ (3,453,449) 1,534,037 $ 18,595,995
=========== ============= ========== ============= =========== =============== =========== ============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(c) Nations Balanced Assets Fund's and Nations Equity Income Fund's Primary B
Shares commenced operations on June 28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 37
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS VALUE FUND NATIONS EQUITY INDEX FUND
PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) PERIOD ENDED SEPTEMBER 30, 1996(b) PERIOD ENDED
(UNAUDITED) MARCH 31, 1996(a) (UNAUDITED) MARCH 31, 1996(a)
--------------------------- -------------------------- --------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PRIMARY A
SHARES:
Sold....... 19,727,136 $ 338,378,950 5,163,241 $ 83,903,398 32,325,709 $ 456,266,044 3,799,411 $ 51,306,974
Issued as
reinvestment of
dividends... 264,197 4,566,637 772,660 12,302,609 201,391 2,882,977 149,543 1,957,962
Redeemed... (16,445,167) (282,654,983) (4,762,096) (77,737,735) (15,613,409) (220,831,379) (1,015,063) (13,448,445)
----------- ------------ ---------- ----------- ----------- ------------ ---------- -----------
Net
increase... 3,546,166 $ 60,290,604 1,173,805 $ 18,468,272 16,913,691 $ 238,317,642 2,933,891 $ 39,816,491
=========== ============= ========== ============ =========== ============= ========== ===========
PRIMARY B
SHARES:
Sold....... 944,412 $ 16,160,363 97,545 $ 1,388,734
Issued as
reinvestment of
dividends.. 581 10,164 234 3,373
Redeemed... (9,274) (158,507) (134) (1,936)
----------- ------------ ----------- ------------
Net
increase... 935,719 $ 16,012,020 97,645 $ 1,390,171
========== ============ ========== ============
INVESTOR A
SHARES:
Sold....... 557,418 $ 9,411,868 319,822 $ 5,256,765 47,522 $ 664,396 6,381 $ 85,961
Issued as
reinvestment of
dividends... 21,834 377,751 132,526 2,100,814 306 4,385 40 530
Redeemed... (345,868) (5,878,411) (167,588) (2,740,844) (45,169) (649,920) (311) (4,114)
----------- ------------ ---------- ----------- ----------- ------------ ---------- -----------
Net
increase... 233,384 $ 3,911,208 284,760 $ 4,616,735 2,659 $ 18,861 6,110 $ 82,377
=========== ============= ========== =========== =========== ============= ========== =============
INVESTOR C
SHARES:
Sold....... 118,931 $ 1,987,656 11,386 $ 184,896
Issued as
reinvestment of
dividends... 1,650 28,391 11,236 176,989
Redeemed... (78,615) (1,327,111) (1,872) (30,850)
----------- ------------ ---------- -----------
Net
increase... 41,966 $ 688,936 20,750 $ 331,035
=========== ============= ========== ============
INVESTOR N
SHARES:
Sold....... 258,240 $ 4,350,891 158,863 $ 2,584,045
Issued as
reinvestment of
dividends... 22,179 382,275 220,922 3,487,288
Redeemed... (361,040) (6,087,381) (193,665) (3,159,748)
----------- ------------ ---------- -----------
Net
increase/
decrease)... (80,621) $ (1,354,215) 186,120 $ 2,911,585
============ ============== ========= =============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Nations Value Fund's and Nations Equity Index Fund's Primary B Shares
commenced operations on June 28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 38
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS DISCIPLINED EQUITY FUND NATIONS CAPITAL GROWTH FUND
PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, 1996(b) PERIOD ENDED SEPTEMBER 30, 1996(b) PERIOD ENDED
(UNAUDITED) MARCH 31, 1996(a) (UNAUDITED) MARCH 31, 1996(a)
----------------------- ----------------------- --------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold.............. 378,891 $ 6,662,241 911,868 $ 15,134,115 4,265,409 $ 33,950,643 6,424,814 $ 84,086,502
Issued in exchange
for Primary A
Shares of the
Peachtree Equity
Fund (Note 9)... -- -- -- -- 6,613,086 95,758,235 -- --
Issued as
reinvestment of
dividends....... 16,873 302,452 28,609 471,692 70,140 985,955 2,017,491 26,088,676
Redeemed.......... (805,123) (14,098,535) (606,825) (10,122,687) (25,054,483) (345,727,535) (6,830,234) (90,955,246)
-------- ------------ --------- ------------ ------------ ------------- ---------- ------------
Net increase/
(decrease)........ (409,359) $ (7,133,842) 333,652 $ 5,483,120 (14,105,848) $(215,032,702) 1,612,071 $ 19,219,932
========= ============= ======= =========== ============= ============= ========= ===========
PRIMARY B SHARES:
Sold.............. 55,392 $ 987,664 627,174 $ 8,698,671
Issued as
reinvestment of
dividends....... -- -- -- --
Redeemed.......... (3,187) (53,657) (131,577) (1,792,867)
------- ----------- ---------- ------------
Net increase...... 52,205 $ 934,007 495,597 $ 6,905,804
======= ============ ========== ============
INVESTOR A SHARES:
Sold.............. 136,392 $ 2,375,691 100,461 $ 1,696,841 333,351 $ 4,556,425 172,211 $ 2,283,677
Issued as
reinvestment of
dividends....... 365 6,647 3,205 52,884 1,349 18,910 96,898 1,250,258
Redeemed.......... (52,531) (943,793) (18,305) (307,696) (227,180) (3,125,988) (82,799) (1,086,582)
-------- ------------ --------- ------------ ------------ ------------- ---------- ------------
Net increase...... 84,226 $ 1,438,545 85,361 $ 1,442,029 107,520 $ 1,449,347 186,310 $ 2,447,353
======== ============ ========= ============ ============ ============= ========= ============
INVESTOR C SHARES:
Sold.............. 2,242 $ 38,670 5,687 $ 97,764 103,198 $ 1,418,092 27,178 $ 357,906
Issued as
reinvestment of
dividends....... -- -- 249 4,072 -- -- 21,940 279,954
Redeemed.......... (1,180) (20,923) (8,353) (143,047) (49,194) (651,161) (9,283) (122,009)
-------- ------------ --------- ------------ ------------ ------------- ---------- ------------
Net increase/
(decrease)....... 1,062 $ 17,747 (2,417) $ (41,211) 54,004 $ 766,931 39,835 $ 515,851
======== ============ ======== ============= =========== ============= ========== ============
INVESTOR N SHARES:
Sold.............. 67,249 $ 1,172,543 125,083 $ 2,067,580 106,119 $ 1,438,228 77,138 $ 996,095
Issued as
reinvestment of
dividends....... -- -- 14,132 230,061 -- -- 259,521 3,353,011
Redeemed.......... (113,952) (1,994,603) (54,982) (911,505) (193,916) (2,610,887) (140,659) (1,838,328)
-------- ------------ --------- ------------ ------------ ------------- ---------- ------------
Net increase/
(decrease)....... (46,703) $ (822,060) 84,233 $ 1,386,136 (87,797) $ (1,172,659) 196,000 $ 2,510,778
======= ============= ======== ============ =========== ============= ========== ============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Nations Disciplined Equity Fund's and Nations Capital Growth Fund's Primary
B Shares commenced operations on June 28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 39
NATIONS FUND
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS MANAGED
NATIONS EMERGING GROWTH FUND INDEX FUND
PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, 1996(c) PERIOD ENDED SEPTEMBER 30, 1996(b)
(UNAUDITED) MARCH 31, 1996(a) (UNAUDITED)
---------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold........................ 3,655,367 $ 53,288,623 2,658,154 $ 34,716,876 2,003,449 $20,036,913
Issued as reinvestment of
dividends................. 1,657 25,186 325,489 4,156,484 6,362 68,015
Redeemed.................... (4,394,256) (64,709,654) (792,108) (10,376,865) -- --
---------- ------------ --------- ---------- --------- -----------
Net increase/(decrease)..... (737,232) $(11,395,845) 2,191,535 $ 28,496,495 2,009,811 $20,104,928
========== ============ ========= ============ ========= ===========
PRIMARY B SHARES:
Sold........................ 29,122 $ 427,604
Issued as reinvestment of
dividends................. 2 37
Redeemed.................... (171) (2,533)
--------- -----------
Net increase................ 28,953 $ 425,108
========= ============
INVESTOR A SHARES:
Sold........................ 310,715 $ 4,514,664 140,607 $ 1,866,999 4,680 $ 50,253
Issued as reinvestment of
dividends................. 102 1,530 43,193 546,812 15 159
Redeemed.................... (94,656) (1,408,143) (29,783) (393,296) -- --
---------- ------------ --------- ---------- ----- --------
Net increase................ 216,161 $ 3,108,051 154,017 $ 2,020,515 4,695 $ 50,412
========== ============ ========= ============ ===== ===========
INVESTOR C SHARES:
Sold........................ 23,150 $ 332,844 4,050 $ 52,274
Issued as reinvestment of
dividends................. 11 163 7,063 87,224
Redeemed.................... (4,139) (58,828) (191) (2,233)
--------- ----------- -------- -----------
Net increase................ 19,022 $ 274,179 10,922 $ 137,265
========== ============= ========= =============
INVESTOR N SHARES:
Sold........................ 146,791 $ 2,061,769 73,737 $ 949,462
Issued as reinvestment of
dividends................. 338 4,956 275,050 3,410,621
Redeemed.................... (196,979) (2,776,983) (100,262) (1,278,091)
--------- ----------- -------- -----------
Net increase/(decrease)....... (49,850) $ (710,258) 248,525 $ 3,081,992
========== ============ ========= ============
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Nations Managed Index Fund's Primary A Shares and Investor A Shares
commenced operations on July 31, 1996 and September 3, 1996, respectively.
(c) Nations Emerging Growth Fund's Primary B Shares commenced operations on June
28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 40
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED AND END OF
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS BALANCED ASSETS FUND
PRIMARY A
Six months
ended
09/30/1996
(unaudited)... $ 11.65 $ 0.20 $ 0.40 $ 0.60 $(0.20) -- $ (0.20) $ 12.05
Period ended
03/31/1996(a).. 12.68 0.11 0.45 0.56 (0.18) $ (1.41) (1.59) 11.65
Year ended
11/30/1995... 10.44 0.38 2.21 2.59 (0.33) (0.02) (0.35) 12.68
Year ended
11/30/1994... 10.87 0.25 (0.43) (0.18) (0.25) -- (0.25) 10.44
Year ended
11/30/1993... 10.24 0.29 0.64 0.93 (0.30) -- (0.30) 10.87
Period ended
11/30/1992*... 10.00 0.06 0.18# 0.24 -- -- -- 10.24
PRIMARY B
Period ended
09/30/1996*
(unaudited)... $ 11.87 $ 0.04 $ 0.22 $ 0.26 $(0.09) -- $ (0.09) $ 12.04
INVESTOR A
Six months
ended
09/30/1996
(unaudited).... $ 11.64 $ 0.18 $ 0.40 $ 0.58 $(0.19) -- $ (0.19) $ 12.03
Period ended
03/31/1996(a).. 12.66 0.11 0.45 0.56 (0.17) $ (1.41) (1.58) 11.64
Year ended
11/30/1995... 10.42 0.34 2.23 2.57 (0.31) (0.02) (0.33) 12.66
Year ended
11/30/1994... 10.86 0.22 (0.44) (0.22) (0.22) -- (0.22) 10.42
Year ended
11/30/1993... 10.24 0.29 0.62 0.91 (0.29) -- (0.29) 10.86
Period ended
11/30/1992*.. 10.00 0.01 0.23# 0.24 -- -- -- 10.24
INVESTOR C
Six months
ended
09/30/1996
(unaudited).... $ 11.60 $ 0.16 $ 0.40 $ 0.56 $(0.17) -- $ (0.17) $ 11.99
Period ended
03/31/1996(a).. 12.61 0.09 0.45 0.54 (0.14) $ (1.41) (1.55) 11.60
Year ended
11/30/1995... 10.38 0.26 2.21 2.47 (0.22) (0.02) (0.24) 12.61
Year ended
11/30/1994... 10.82 0.14 (0.43) (0.29) (0.15) -- (0.15) 10.38
Year ended
11/30/1993... 10.23 0.23 0.59 0.82 (0.23) -- (0.23) 10.82
Period ended
11/30/1992*.. 10.00 0.01 0.22# 0.23 -- -- -- 10.23
INVESTOR N
Six months
ended
09/30/1996
(unaudited).... $ 11.62 $ 0.15 $ 0.40 $ 0.55 $(0.16) -- $ (0.16) $ 12.01
Period ended
03/31/1996(a).. 12.63 0.09 0.45 0.54 (0.14) $ (1.41) (1.55) 11.62
Year ended
11/30/1995... 10.40 0.28 2.22 2.50 (0.25) (0.02) (0.27) 12.63
Year ended
11/30/1994... 10.85 0.17 (0.44) (0.27) (0.18) -- (0.18) 10.40
Period ended
11/30/1993*.. 10.61 0.14 0.23 0.37 (0.13) -- (0.13) 10.85
</TABLE>
- ---------------
* Nations Balanced Assets Fund's Primary A, Primary B, Investor A, Investor C
and Investor N Shares commenced operations on September 30, 1992, June 28,
1996, October 2, 1992, October 2, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of the
portfolio.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 41
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE INCOME COMMISSION RATE
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE PAID(b)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
5.20% $ 159,570 0.99%+ 3.33%+ 133% 0.99%+ $ 0.20 $0.0597
4.90 164,215 1.00+ 2.91+ 83 1.00+ 0.11 0.0598
25.27 163,198 0.99 3.25 174 0.99 0.38 N/A
(1.73) 162,215 0.98 2.31 156 0.99 0.25 N/A
9.22 178,270 0.90 2.82 50 0.97 0.29 N/A
2.40+++ 111,953 0.30+ 3.85+ 79 1.05+ 0.05 N/A
2.18% $ 2,508 1.49%+ 2.83%+ 133% 1.49%+ $ 0.04 $0.0597
4.99% $ 7,158 1.24%+ 3.08%+ 133% 1.24%+ $ 0.18 $0.0597
4.86 6,261 1.25+ 2.66+ 83 1.25+ 0.11 0.0598
25.01 5,276 1.24 3.00 174 1.24 0.34 N/A
(2.02) 4,881 1.23 2.06 156 1.24 0.22 N/A
8.93 5,191 1.15 2.57 50 1.22 0.28 N/A
2.40+++ 547 0.55+ 3.60+ 79 1.30+ 0.01 N/A
4.88% $ 1,254 1.49%+ 2.83%+ 133% 1.49%+ $ 0.16 $0.0597
4.71 1,187 1.62+ 2.29+ 83 1.62+ 0.09 0.0598
24.03 992 1.99 2.25 174 1.99 0.26 N/A
(2.72) 951 1.98 1.31 156 1.99 0.14 N/A
8.06 1,196 1.90 1.82 50 1.97 0.22 N/A
2.30+++ 156 1.30+ 2.85+ 79 2.05+ 0.01 N/A
4.74% $ 64,586 1.74%+ 2.58%+ 133% 1.74%+ $ 0.15 $0.0597
4.69 65,764 1.75+ 2.16+ 83 1.75+ 0.09 0.0598
24.35 65,275 1.74 2.50 174 1.74 0.28 N/A
(2.51) 52,905 1.73 1.56 156 1.74 0.17 N/A
3.45 27,982 1.65+ 2.07+ 50 1.72+ 0.14 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 42
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
VALUE NET AND UNREALIZED IN FROM NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN ON NET ASSET VALUE INVESTMENT REALIZED AND END OF
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS EQUITY INCOME FUND
PRIMARY A
Six months
ended
09/30/1996#
(unaudited).... $ 13.14 $ 0.22 $ 0.63 $ 0.85 $(0.23) -- $ (0.23) $ 13.76
Period ended
03/31/1996(a).. 11.81 0.30 1.77 2.07 (0.37) $ (0.37) (0.74) 13.14
Year ended
05/31/1995..... 11.43 0.42 1.11 1.53 (0.42) (0.73) (1.15) 11.81
Year ended
05/31/1994..... 12.06 0.38 0.22 0.60 (0.42) (0.81) (1.23) 11.43
Year ended
05/31/1993..... 11.41 0.37 1.08 1.45 (0.35) (0.45) (0.80) 12.06
Year ended
05/31/1992..... 10.19 0.34 1.25 1.59 (0.30) (0.07) (0.37) 11.41
Period ended
05/31/1991*.... 10.00 0.05 0.14 0.19 -- -- -- 10.19
PRIMARY B
Period ended
09/30/1996*#
(unaudited).... $ 13.50 $ 0.12 $ 0.24 $ 0.36 $(0.10) -- $ (0.10) $ 13.76
INVESTOR A
Six months
ended
09/30/1996#
(unaudited).... $ 13.11 $ 0.20 $ 0.64 $ 0.84 $(0.22) -- $ (0.22) $ 13.73
Period ended
03/31/1996(a).. 11.78 0.27 1.77 2.04 (0.34) $ (0.37) (0.71) 13.11
Year ended
05/31/1995..... 11.41 0.40 1.10 1.50 (0.40) (0.73) (1.13) 11.78
Year ended
05/31/1994..... 12.02 0.37 0.21 0.58 (0.38) (0.81) (1.19) 11.41
Year ended
05/31/1993..... 11.40 0.34 1.05 1.39 (0.32) (0.45) (0.77) 12.02
Year ended
05/31/1992..... 10.19 0.29 1.27 1.56 (0.28) (0.07) (0.35) 11.40
Period ended
05/31/1991*.... 10.04 0.05 0.10 0.15 -- -- -- 10.19
INVESTOR C
Six months
ended
09/30/1996#
(unaudited).... $ 13.19 $ 0.19 $ 0.63 $ 0.82 $(0.20) -- $ (0.20) $ 13.81
Period ended
03/31/1996(a).. 11.83 0.21 1.78 1.99 (0.26) $ (0.37) (0.63) 13.19
Year ended
05/31/1995..... 11.47 0.32 1.08 1.40 (0.31) (0.73) (1.04) 11.83
Year ended
05/31/1994..... 12.04 0.28 0.21 0.49 (0.25) (0.81) (1.06) 11.47
Period ended
05/31/1993*.... 11.13 0.32 1.32 1.64 (0.28) (0.45) (0.73) 12.04
INVESTOR N
Six months
ended
09/30/1996#
(unaudited).... $ 13.10 $ 0.17 $ 0.63 $ 0.80 $(0.18) -- $ (0.18) $ 13.72
Period ended
03/31/1996(a).. 11.77 0.22 1.76 1.98 (0.28) $ (0.37) (0.65) 13.10
Year ended
05/31/1995..... 11.40 0.34 1.11 1.45 (0.35) (0.73) (1.08) 11.77
Period ended
05/31/1994*.... 11.98 0.37 0.22 0.59 (0.36) (0.81) (1.17) 11.40
</TABLE>
- ---------------
* Nations Equity Income Fund's Primary A, Primary B, Investor A, Investor C
and Investor N Shares commenced operations on April 11, 1991, June 28, 1996,
April 16, 1991, June 17, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with the
results of operations.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 43
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE INCOME/(LOSS) COMMISSION RATE
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE PAID(b)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6.53% $ 216,872 0.89%+ 3.27%+ 45% 0.89%+ $ 0.22 $0.0614
17.98 283,142 0.90+ 2.84+ 59 0.90+ 0.30 0.0287
14.79 283,082 0.92 3.75 158 0.93 0.42 N/A
5.00 225,740 0.94 3.41 116 0.95 0.38 N/A
13.30 175,949 0.92 3.37 55 1.04 0.36 N/A
15.91+++ 18,104 1.10 3.15 84 2.21 0.22 N/A
1.90+++ 10,194 1.12+ 3.66+ 9 1.80+ (0.06) N/A
2.65% $ 1,798 1.39%+ 2.77%+ 45% 1.39%+ $ 0.12 $0.0614
6.42% $ 43,671 1.14%+ 3.02%+ 45% 1.14%+ $ 0.20 $0.0614
17.75 42,606 1.15+ 2.59+ 59 1.15+ 0.27 0.0287
14.53 35,538 1.17 3.50 158 1.18 0.40 N/A
4.74 33,691 1.19 3.16 116 1.20 0.37 N/A
12.78 32,760 1.17 3.12 55 1.29 0.33 N/A
15.59+++ 3,418 1.35 2.90 84 2.46 0.18 N/A
1.49+++ 497 1.37+ 3.40+ 9 15.09+ (1.30) N/A
6.26% $ 4,858 1.39%+ 2.77%+ 45% 1.39%+ $ 0.19 $0.0614
17.20 4,612 1.75+ 1.99+ 59 1.75+ 0.21 0.0287
13.49 4,278 1.92 2.75 158 1.93 0.32 N/A
3.96 4,221 1.94 2.41 116 1.95 0.28 N/A
15.31 4,377 1.92+ 2.37+ 55 2.04+ 0.31 N/A
6.16% $ 105,283 1.64%+ 2.52%+ 45% 1.64%+ $ 0.17 $0.0614
17.21 104,026 1.65+ 2.09+ 59 1.65+ 0.22 0.0287
14.03 75,371 1.67 3.00 158 1.68 0.34 N/A
4.84 46,043 1.69+ 2.66+ 116 1.70+ 0.37 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 44
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
AND
NET ASSET UNREALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
VALUE NET GAIN/(LOSS) (DECREASE) IN FROM NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT ON NET ASSET VALUE INVESTMENT REALIZED AND END OF
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS VALUE FUND
PRIMARY A
Six months
ended
09/30/1996
(unaudited).... $ 16.60 $0.13 $ 0.95 $ 1.08 $(0.14) -- $ (0.14) $ 17.54
Period ended
03/31/1996(a).. 16.21 0.07 1.06 1.13 (0.12) $ (0.62) (0.74) 16.60
Year ended
11/30/1995..... 12.98 0.27 3.91 4.18 (0.28) (0.67) (0.95) 16.21
Year ended
11/30/1994..... 13.74 0.24 (0.23) 0.01 (0.23) (0.54) (0.77) 12.98
Year ended
11/30/1993..... 12.45 0.24 1.38 1.62 (0.24) (0.09) (0.33) 13.74
Year ended
11/30/1992..... 11.16 0.28 1.57 1.85 (0.27) (0.29) (0.56) 12.45
Year ended
11/30/1991..... 9.71 0.34 1.47 1.81 (0.36) -- (0.36) 11.16
Year ended
11/30/1990..... 10.04 0.35 (0.36) (0.01) (0.32) -- (0.32) 9.71
Period ended
11/30/1989*#... 10.00 0.08 (0.04) 0.04 -- -- -- 10.04
PRIMARY B
Period ended
09/30/1996*
(unaudited).... $ 17.19 $0.04 $ 0.36 $ 0.40 $(0.05) -- $ (0.05) $ 17.54
INVESTOR A
Six months
ended
09/30/1996
(unaudited).... $ 16.60 $0.12 $ 0.95 $ 1.07 $(0.12) -- $ (0.12) $ 17.55
Period ended
03/31/1996(a).. 16.21 0.05 1.06 1.11 (0.10) $ (0.62) (0.72) 16.60
Year ended
11/30/1995..... 12.98 0.23 3.92 4.15 (0.25) (0.67) (0.92) 16.21
Year ended
11/30/1994..... 13.72 0.20 (0.20) 0.00 (0.20) (0.54) (0.74) 12.98
Year ended
11/30/1993..... 12.45 0.22 1.35 1.57 (0.21) (0.09) (0.30) 13.72
Year ended
11/30/1992..... 11.16 0.26 1.59 1.85 (0.27) (0.29) (0.56) 12.45
Year ended
11/30/1991..... 9.71 0.34 1.47 1.81 (0.36) -- (0.36) 11.16
Period ended
11/30/1990*.... 10.04 0.35 (0.36) (0.01) (0.32) -- (0.32) 9.71
INVESTOR C
Six months
ended
09/30/1996
(unaudited).... $ 16.50 $0.09 $ 0.95 $ 1.04 $(0.10) -- $ (0.10) $ 17.44
Period ended
03/31/1996(a).. 16.09 0.04 1.05 1.09 (0.06) $ (0.62) (0.68) 16.50
Year ended
11/30/1995..... 12.90 0.13 3.88 4.01 (0.15) (0.67) (0.82) 16.09
Year ended
11/30/1994..... 13.64 0.12 (0.22) (0.10) (0.10) (0.54) (0.64) 12.90
Year ended
11/30/1993..... 12.41 0.13 1.32 1.45 (0.13) (0.09) (0.22) 13.64
Period ended
11/30/1992*.... 11.63 0.07 0.78 0.85 (0.07) -- (0.07) 12.41
INVESTOR N
Six months
ended
09/30/1996
(unaudited).... $ 16.55 $0.06 $ 0.95 $ 1.01 $(0.07) -- $ (0.07) $ 17.49
Period ended
03/31/1996(a).. 16.15 0.03 1.05 1.08 (0.06) $ (0.62) (0.68) 16.55
Year ended
11/30/1995..... 12.94 0.17 3.89 4.06 (0.18) (0.67) (0.85) 16.15
Year ended
11/30/1994..... 13.71 0.15 (0.22) (0.07) (0.16) (0.54) (0.70) 12.94
Period ended
11/30/1993*.... 13.08 0.11 0.63 0.74 (0.11) -- (0.11) 13.71
</TABLE>
- ---------------
* Nations Value Fund's Primary A, Primary B, Investor A, Investor C and
Investor N Shares commenced operations on September 19, 1989, June 28,
1996, December 6, 1989, June 17, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with the
results of operations.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 45
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
-------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE NET INCOME COMMISSION RATE
RETURN++ (IN 000'S) ASSETS ASSETS RATE ASSETS PER SHARE PAID(b)
-------------------------------------------------------------------------------------------------------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
6.50% $1,118,233 0.96%+ 1.61%+ 26% 0.96%+ $ 0.13 $0.0661
7.20 998,957 0.96+ 1.30+ 12 0.96+ 0.07 0.0648
34.53 956,669 0.94 1.90 63 0.94 0.27 N/A
(0.08) 799,743 0.93 1.85 75 0.93 0.24 N/A
13.19 707,185 0.96 1.98 64 0.97 0.24 N/A
17.00+++ 282,138 0.90 2.31 60 0.97 0.27 N/A
18.79+++ 82,360 0.53 3.33 51 0.99 0.30 N/A
(0.16)+++ 19,769 0.21 4.19 24 1.11 0.26 N/A
0.40+++ 5,161 0.49+ 4.41+ -- 1.41+ 0.06 N/A
2.35% $ 16,417 1.46%+ 1.11%+ 26% 1.46%+ $ 0.04 $0.0661
6.44% $ 61,537 1.21%+ 1.36%+ 26% 1.21%+ $ 0.12 $0.0661
7.07 54,341 1.21+ 1.05+ 12 1.21+ 0.05 0.0648
34.22 48,440 1.19 1.65 63 1.19 0.23 N/A
(0.17) 35,445 1.18 1.60 75 1.18 0.21 N/A
12.80 32,607 1.21 1.73 64 1.22 0.22 N/A
16.96+++ 24,536 1.06 2.15 60 1.15 0.25 N/A
18.79+++ 13,514 0.53 3.33 51 0.99 0.30 N/A
(0.16)+++ 7,020 0.21+ 4.19+ 24 1.11+ 0.26 N/A
6.29% $ 5,628 1.46%+ 1.11%+ 26% 1.46%+ $ 0.09 $0.0661
6.99 4,633 1.58+ 0.68+ 12 1.58+ 0.04 0.0648
33.15 4,185 1.94 0.90 63 1.94 0.13 N/A
(0.92) 2,983 1.93 0.85 75 1.93 0.12 N/A
11.85 2,997 1.96 0.98 64 1.97 0.13 N/A
7.33+++ 1,286 1.98+ 1.22+ 60 1.98+ 0.07 N/A
6.13% $ 92,513 1.71%+ 0.86%+ 26% 1.71%+ $ 0.06 $0.0661
6.90 88,861 1.71+ 0.55+ 12 1.71+ 0.03 0.0648
33.55 83,699 1.69 1.15 63 1.69 0.17 N/A
(0.69) 42,530 1.68 1.10 75 1.68 0.15 N/A
5.65 10,449 1.71+ 1.23+ 64 1.72+ 0.11 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 46
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
VALUE NET GAIN/(LOSS) NET INCREASE IN FROM NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT ON NET ASSET VALUE INVESTMENT REALIZED AND END OF
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS EQUITY INDEX FUND
PRIMARY A
Six months
ended
09/30/1996
(unaudited).... $ 13.58 $0.13 $ 0.90 $ 1.03 $(0.13) -- $ (0.13) $ 14.48
Period ended
03/31/1996(a).. 12.91 0.08 0.86 0.94 (0.13) $ (0.14) (0.27) 13.58
Year ended
11/30/1995..... 9.84 0.28 3.20 3.48 (0.28) (0.13) (0.41) 12.91
Period ended
11/30/1994*.... 10.00 0.24 (0.21) 0.03 (0.19) -- (0.19) 9.84
PRIMARY B
Period ended
09/30/1996*
(unaudited).... $ 14.13 $0.06 $ 0.36 $ 0.42 $(0.06) -- $ (0.06) $ 14.49
INVESTOR A
Six months
ended
09/30/1996
(unaudited).... $ 13.58 $0.04 $ 0.95 $ 0.99 $(0.11) -- $ (0.11) $ 14.46
Period ended
03/31/1996(a).. 12.91 0.06 0.87 0.93 (0.12) $ (0.14) (0.26) 13.58
Period ended
11/30/1995*.... 12.29 0.03 0.59 0.62 -- -- -- 12.91
</TABLE>
- ---------------
* Nations Equity Index Fund's Primary A, Primary B and Investor A Shares
commenced operations on December 15, 1993, June 28, 1996 and October 10,
1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 47
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
RATIO OF ----------------------------
RATIO OF OPERATING RATIO OF RATIO OF
NET ASSETS OPERATING EXPENSES TO NET INVESTMENT OPERATING
END OF EXPENSES TO AVERAGE NET INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE NET ASSETS INCLUDING AVERAGE NET TURNOVER AVERAGE NET INCOME COMMISSION RATE
RETURN++ (IN 000'S) ASSETS INTEREST EXPENSE ASSETS RATE ASSETS PER SHARE PAID(b)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
7.56% $450,127 0.35%+ 0.35%+ 2.23%+ 5% 0.70%+ $ 0.11 $0.0149
7.33 192,388 0.35+ 0.35+ 1.99+ 2 0.73+ 0.07 0.0291
36.35 145,021 0.37 0.38 2.44 18 0.78 0.23 N/A
0.29 123,147 0.35+ -- 2.64+ 14 0.79+ 0.20 N/A
2.94% $ 1,415 0.85%+ 0.85%+ 1.73%+ 5% 1.20%+ $ 0.05 $0.0149
7.32% $ 139 0.60%+ 0.60%+ 1.98%+ 5% 0.95%+ $ 0.04 $0.0149
7.26 95 0.35+ 0.35+ 1.99+ 2 0.73+ 0.05 0.0291
5.04 11 0.62+ 0.63+ 2.19+ 18 1.03+ 0.02 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 48
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND NET INCREASE/ DIVIDENDS DISTRIBUTIONS TOTAL
VALUE NET UNREALIZED (DECREASE) IN FROM NET FROM NET RETURN DIVIDENDS
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT REALIZED OF AND
OF PERIOD INCOME/(LOSS) ON INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS CAPITAL DISTRIBUTIONS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS DISCIPLINED EQUITY FUND
PRIMARY A
Six months
ended
09/30/1996
(unaudited)..... $17.19 $ 0.07 $ 1.22 $ 1.29 $(0.07) -- -- $ (0.07)
Period ended
03/31/1996(a)... 17.06 0.05 0.35 0.40 (0.04) $ (0.23) -- (0.27)
Year ended
11/30/1995...... 13.08 0.10 3.96 4.06 (0.08) -- -- (0.08)
Period ended
11/30/1994*..... 13.31 0.01 (0.23)# (0.22) (0.01) -- $(0.00)(b) (0.01)
Period ended
04/29/1994*..... 13.65 (0.05) 2.66 2.61 -- (2.95) -- (2.95)
Period ended
04/30/1993*..... 10.00 (0.03) 3.74 3.71 -- (0.06) -- (0.06)
PRIMARY B
Period ended
09/30/1996***
(unaudited)..... $17.84 $ 0.01 $ 0.57 $ 0.58 $(0.01) -- -- $ (0.01)
INVESTOR A
Six months
ended
09/30/1996
(unaudited)..... $17.16 $ 0.04 $ 1.22 $ 1.26 $(0.04) -- -- $ (0.04)
Period ended
03/31/1996(a)... 17.04 0.04 0.35 0.39 (0.04) $ (0.23) -- (0.27)
Year ended
11/30/1995...... 13.06 0.09 3.96 4.05 (0.07) -- -- (0.07)
Period ended
11/30/1994**.... 13.30 0.00(b) (0.23)# (0.23) (0.01) -- $(0.00)(b) (0.01)
Period ended
04/30/1994**.... 14.94 (0.04) 1.35 1.31 -- (2.95) -- (2.95)
INVESTOR C
Six months
ended
09/30/1996
(unaudited)..... $17.10 $ 0.02 $ 1.22 $ 1.24 -- -- -- --
Period ended
03/31/1996(a)... 16.97 0.01 0.35 0.36 -- $ (0.23) -- $ (0.23)
Period ended
11/30/1995***... 14.08 (0.00)(b) 2.92 2.92 $(0.03) -- -- (0.03)
INVESTOR N
Six months
ended
09/30/1996
(unaudited)..... $17.00 $ (0.03) $ 1.21 $ 1.18 -- -- -- --
Period ended
03/31/1996(a)... 16.89 (0.01) 0.35 0.34 -- $ (0.23) -- $ (0.23)
Year ended
11/30/1995...... 13.02 0.03 3.87 3.90 $(0.03) -- -- (0.03)
Period ended
11/30/1994***... 12.77 (0.02) 0.28 0.26 (0.01) -- $(0.00)(b) (0.01)
</TABLE>
- ---------------
<TABLE>
<C> <S>
* The period for the Nations Disciplined Equity Fund's Primary A Shares reflects operations from April 30, 1994 through
November 30, 1994. The financial information for the fiscal periods through April 29, 1994 is based on the financial
information for The Capitol Mutual Funds Special Equity Portfolio Class A Shares, which were reorganized into Primary A
Shares of Nations Disciplined Equity Fund (then named Nations Special Equity Fund) as of the close of business on April 29,
1994. The Capitol Mutual Funds' Special Equity Portfolio Class A Shares commenced operations on October 1, 1992.
** The period for the Nations Disciplined Equity Fund's Investor A Shares reflects operations from April 30, 1994 through
November 30, 1994. The financial information for the fiscal periods through April 29, 1994 is based on the financial
information for The Capitol Mutual Funds Special Equity Portfolio Class B Shares, which were reorganized into Investor A
Shares of Nations Disciplined Equity Fund (then named Nations Special Equity Fund) as of the close of business on April 29,
1994. The Capitol Mutual Funds Special Equity Portfolio Class B Shares commenced operations on July 26, 1993.
*** The Nations Disciplined Equity Fund's Primary B, Investor C and Investor N Shares commenced operations on June 28, 1996,
May 10, 1995 and May 20, 1994, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and does not reflect the deduction of any
applicable sales charges.
# The amount shown at this caption for each share outstanding throughout the period may not accord with the change in the
aggregate gains and losses in the portfolio securities for the period because of the timing of purchases and withdrawals of
shares in relation to the fluctuating market value of the portfolio.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was November 30.
(b) Amount represents less than $0.01 per share.
(c) Average commission rate paid per share of securities purchased and sold by the Fund.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 49
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET ASSET NET ASSETS OPERATING NET INVESTMENT
VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER
PERIOD RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 18.41 7.48% $ 117,248 1.01%+ 0.76%+ 72%
17.19 2.44 116,469 1.02+ 0.82+ 47
17.06 31.13 109,939 1.30 0.85 124
13.08 (1.62) 9,947 1.13+ 0.12+ 177
13.31 18.79 8,079 1.20+ (0.60)+ 475
13.65 37.13 4,638 1.20+ (0.58)+ 203
$ 18.41 3.26% $ 961 1.51%+ 0.26%+ 72%
$ 18.38 7.37% $ 6,607 1.26%+ 0.51%+ 72%
17.16 2.35 4,722 1.12+ 0.72+ 47
17.04 31.05 3,234 1.40 0.75 124
13.06 (1.71) 252 1.23+ 0.02+ 177
13.30 8.31 165 1.30+ (0.62)+ 475
$ 18.34 7.25% $ 323 1.51%+ 0.26%+ 72%
17.10 2.19 283 1.65+ 0.19+ 47
16.97 20.78 322 2.30+ (0.15)+ 124
$ 18.18 6.94% $ 18,849 2.01%+ (0.24)%+ 72%
17.00 2.08 18,412 2.02+ (0.18)+ 47
16.89 29.94 16,874 2.30 (0.15) 124
13.02 2.02 177 2.09+ (0.84)+ 177
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
- -----------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT AVERAGE
AVERAGE INCOME/(LOSS) COMMISSION RATE
NET ASSETS PER SHARE PAID(c)
- -------------------------------------------------------
<S> <C> <C>
1.01%+ $ 0.07 $0.0347
1.02+ 0.05 0.0627
1.30 0.10 N/A
1.56+ (0.03) N/A
1.53+ (0.08) N/A
1.31+ (0.03) N/A
1.51%+ $ 0.01 $0.0347
1.26%+ $ 0.04 $0.0347
1.12+ 0.04 0.0627
1.40 0.09 N/A
1.66+ (0.07) N/A
1.74+ (0.07) N/A
1.51%+ $ 0.02 $0.0347
1.65+ 0.01 0.0627
2.30+ (0.00)(b) N/A
2.01%+ $(0.03) $0.0347
2.02+ (0.01) 0.0627
2.30 0.03 N/A
2.52+ (0.03) N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 50
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND DIVIDENDS DISTRIBUTIONS TOTAL
VALUE NET UNREALIZED NET INCREASE IN FROM NET FROM NET DIVIDENDS
BEGINNING INVESTMENT GAIN NET ASSET VALUE INVESTMENT REALIZED AND
OF PERIOD INCOME/(LOSS) ON INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS CAPITAL GROWTH FUND
PRIMARY A
Six months ended
09/30/1996
(unaudited)......... $13.43 $ 0.03 $ 1.04 $ 1.07 $(0.03) -- $ (0.03)
Period ended
03/31/1996(a)....... 14.24 0.02 0.38 0.40 (0.02) $ (1.19) (1.21)
Year ended
11/30/1995.......... 11.23 0.09 3.28 3.37 (0.10) (0.26) (0.36)
Year ended
11/30/1994.......... 11.08 0.09 0.14 0.23 (0.08) (0.00)(b) (0.08)
Year ended
11/30/1993.......... 10.68 0.09 0.42 0.51 (0.10) (0.01) (0.11)
Period ended
11/30/1992*......... 10.00 0.02 0.66# 0.68 -- -- --
PRIMARY B
Period ended
09/30/1996*
(unaudited)......... $13.96 $ 0.00(b) $ 0.51 $ 0.51 -- -- --
INVESTOR A
Six months ended
09/30/1996
(unaudited)......... $13.41 $ 0.02 $ 1.03 $ 1.05 $(0.02) -- $ (0.02)
Period ended
03/31/1996(a)....... 14.22 0.01 0.38 0.39 (0.01) $ (1.19) (1.20)
Year ended
11/30/1995.......... 11.21 0.06 3.28 3.34 (0.07) (0.26) (0.33)
Year ended
11/30/1994.......... 11.06 0.07 0.14 0.21 (0.06) (0.00)(b) (0.06)
Year ended
11/30/1993.......... 10.67 0.07 0.41 0.48 (0.08) (0.01) (0.09)
Period ended
11/30/1992*......... 10.00 0.01 0.66# 0.67 -- -- --
INVESTOR C
Six months ended
09/30/1996
(unaudited)......... $13.26 $ 0.01 $ 1.02 $ 1.03 -- -- --
Period ended
03/31/1996(a)....... 14.09 0.00(b) 0.36 0.36 -- $ (1.19) $ (1.19)
Year ended
11/30/1995.......... 11.14 (0.03) 3.24 3.21 -- (0.26) (0.26)
Year ended
11/30/1994.......... 11.01 (0.02) 0.15 0.13 -- (0.00)(b) (0.00)(b)
Year ended
11/30/1993.......... 10.67 (0.00)(b) 0.38 0.38 $(0.03) (0.01) (0.04)
Period ended
11/30/1992*......... 10.00 (0.00)(b) 0.67# 0.67 -- -- (0.00)(b)
INVESTOR N
Six months ended
09/30/1996
(unaudited)......... $13.31 $ (0.04) $ 1.03 $ 0.99 -- -- --
Period ended
03/31/1996(a)....... 14.15 (0.02) 0.37 0.35 -- $ (1.19) $ (1.19)
Year ended
11/30/1995.......... 11.17 (0.03) 3.27 3.24 -- (0.26) (0.26)
Year ended
11/30/1994.......... 11.05 (0.01) 0.13 0.12 -- (0.00)(b) (0.00)(b)
Period ended
11/30/1993*......... 10.55 (0.01) 0.53 0.52 $(0.02) -- (0.02)
</TABLE>
- ---------------
<TABLE>
<C> <S>
* The Nations Capital Growth Fund's Primary A, Primary B, Investor A, Investor C and Investor N Shares commenced operations
on September 30, 1992, June 28, 1996, October 2, 1992, October 2, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and does not reflect the deduction of any
applicable sales charges.
+++ Unaudited.
# The amount shown at this caption for each share outstanding throughout the period may not accord with the change in the
aggregate gains and losses in the portfolio securities for the period because of the timing of purchases and withdrawals of
shares in relation to the fluctuating market value of the portfolio.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was November 30.
(b) Amount represents less than $0.01 per share.
(c) Average commission rate paid per share of securities purchased and sold by the Fund.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 51
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET ASSET NET ASSETS OPERATING NET INVESTMENT
VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER
PERIOD RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 14.47 7.98% $ 700,139 0.95%+ 0.45%+ 51%
13.43 3.14 839,300 0.96+ 0.38+ 25
14.24 30.96 867,361 0.98 0.71 80
11.23 2.14 717,914 0.90 0.85 56
11.08 4.84 646,661 0.80 0.84 81
10.68 6.80+++ 728,629 0.30+ 1.33+ 7
$ 14.47 3.65% $ 7,170 1.45%+ (0.05)%+ 51%
$ 14.44 7.80% $ 21,278 1.20%+ 0.20%+ 51%
13.41 3.02 18,311 1.21+ 0.13+ 25
14.22 30.70 16,770 1.23 0.46 80
11.21 1.93 11,038 1.15 0.60 56
11.06 4.56 11,182 1.05 0.59 81
10.67 6.70+++ 1,225 0.55+ 1.08+ 7
$ 14.29 7.77% $ 4,708 1.45%+ (0.05)%+ 51%
13.26 2.86 3,655 1.58+ (0.24)+ 25
14.09 29.61 3,322 1.98 (0.29) 80
11.14 1.22 2,394 1.90 (0.15) 56
11.01 3.61 2,919 1.80 (0.16) 81
10.67 6.70+++ 406 1.30+ 0.33+ 7
$ 14.30 7.44% $ 42,841 1.95%+ (0.55)%+ 51%
13.31 2.77 41,045 1.96+ (0.62)+ 25
14.15 29.80 40,868 1.98 (0.29) 80
11.17 1.12 23,591 1.90 (0.15) 56
11.05 4.95 9,511 1.80+ (0.16)+ 81
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
- ------------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT AVERAGE
AVERAGE INCOME/(LOSS) COMMISSION RATE
NET ASSETS PER SHARE PAID(c)
- -----------------------------------------------------
<S> <C> <C>
0.95%+ $ 0.03 $0.0622
0.96%+ 0.02 0.0632
0.98 0.09 N/A
0.91 0.09 N/A
0.89 0.08 N/A
1.05+ 0.01 N/A
1.45%+ $ 0.00(b) $0.0622
1.20%+ $ 0.02 $0.0622
1.21+ 0.01 0.0632
1.23 0.06 N/A
1.16 0.07 N/A
1.14 0.06 N/A
1.30+ 0.00(b) N/A
1.45%+ $ 0.01 $0.0622
1.58+ 0.00(b) 0.0632
1.98 (0.03) N/A
1.91 (0.02) N/A
1.89 0.00(b) N/A
2.05+ 0.00(b) N/A
1.95%+ $(0.04) $0.0622
1.96+ (0.02) 0.0632
1.98 (0.03) N/A
1.91 (0.01) N/A
1.89+ (0.02) N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 52
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND NET INCREASE DISTRIBUTIONS TOTAL NET ASSET
VALUE NET UNREALIZED IN NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN ASSET VALUE REALIZED AND END OF
OF PERIOD INCOME/(LOSS) ON INVESTMENTS FROM OPERATIONS CAPITAL GAINS DISTRIBUTIONS PERIOD
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS EMERGING GROWTH FUND
PRIMARY A
Six months ended
09/30/1996#
(unaudited).... $14.04 $ (0.02) $ 1.31 $1.29 $ (0.00)(b) $ (0.00)(b) $ 15.33
Period ended
03/31/1996#(a). 14.28 (0.00)(b) 1.26 1.26 (1.50) (1.50) 14.04
Year ended
11/30/1995..... 11.41 0.01 3.26 3.27 (0.40) (0.40) 14.28
Year ended
11/30/1994#.... 10.87 (0.03) 0.71 0.68 (0.14) (0.14) 11.41
Period ended
11/30/1993*.... 10.00 (0.01) 0.89 0.88 (0.01) (0.01) 10.87
PRIMARY B
Period ended
09/30/1996*#
(unaudited).... $15.08 $ (0.04) $ 0.27 $0.23 $ (0.00)(b) $ (0.00)(b) $ 15.31
INVESTOR A
Six months ended
09/30/1996#
(unaudited).... $13.91 $ (0.04) $ 1.30 $1.26 $ (0.00)(b) $ (0.00)(b) $ 15.17
Period ended
03/31/1996#(a). 14.17 (0.01) 1.25 1.24 (1.50) (1.50) 13.91
Year ended
11/30/1995..... 11.35 (0.01) 3.23 3.22 (0.40) (0.40) 14.17
Year ended
11/30/1994#.... 10.85 (0.06) 0.70 0.64 (0.14) (0.14) 11.35
Period ended
11/30/1993*.... 9.87 (0.03) 1.02 0.99 (0.01) (0.01) 10.85
INVESTOR C
Six months ended
09/30/1996#
(unaudited).... $13.56 $ (0.06) $ 1.27 $1.21 $ (0.00)(b) $ (0.00)(b) $ 14.77
Period ended
03/31/1996#(a). 13.87 (0.03) 1.22 1.19 (1.50) (1.50) 13.56
Year ended
11/30/1995..... 11.20 (0.08) 3.15 3.07 (0.40) (0.40) 13.87
Year ended
11/30/1994#.... 10.78 (0.14) 0.70 0.56 (0.14) (0.14) 11.20
Period ended
11/30/1993*.... 9.89 (0.09) 0.98 0.89 -- -- 10.78
INVESTOR N
Six months ended
09/30/1996#
(unaudited).... $13.61 $ (0.09) $ 1.26 $1.17 $ (0.00)(b) $ (0.00)(b) $ 14.78
Period ended
03/31/1996#(a). 13.93 (0.05) 1.23 1.18 (1.50) (1.50) 13.61
Year ended
11/30/1995..... 11.24 (0.07) 3.16 3.09 (0.40) (0.40) 13.93
Year ended
11/30/1994#.... 10.82 (0.14) 0.70 0.56 (0.14) (0.14) 11.24
Period ended
11/30/1993*.... 9.88 (0.02) 0.96 0.94 -- -- 10.82
</TABLE>
- ---------------
* Nations Emerging Growth Fund's Primary A, Primary B, Investor A, Investor C
and Investor N Shares commenced operations on December 4, 1992, June 28,
1996, December 10, 1992, December 18, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with
the results of operations.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than $0.01 per share.
(c) Average commission rate paid per share of securities purchased and sold by
the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 53
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER AVERAGE INCOME/(LOSS)
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
9.20% $311,604 0.98%+ (0.28)%+ 49% 0.98%+ $(0.02)
9.87 295,764 0.99+ (0.06)+ 39 0.99%+ (0.00)(b)
29.95 269,484 0.98 0.08 139 0.98 0.01
6.26 182,459 1.01 (0.29) 129 1.01 (0.03)
8.81 121,281 0.80+ (0.15)+ 159 1.01+ (0.03)
1.54% $ 443 1.48%+ (0.78)%+ 49% 1.48%+ $(0.04)
9.07% $ 11,786 1.23%+ (0.53)%+ 49% 1.23%+ $(0.04)
9.80 7,802 1.24+ (0.31)+ 39 1.24+ (0.01)
29.65 5,765 1.23 (0.17) 139 1.23 (0.01)
5.90 3,234 1.26 (0.54) 129 1.26 (0.05)
9.99 2,095 1.05+ (0.40)+ 159 1.26+ (0.04)
8.94% $ 1,300 1.48%+ (0.78)%+ 49% 1.48%+ $(0.06)
9.64 936 1.61+ (0.68)+ 39 1.61+ (0.03)
28.67 805 1.98 (0.92) 139 1.98 (0.08)
5.19 542 2.01 (1.29) 129 2.01 (0.12)
9.00 469 1.80+ (1.15)+ 159 2.01+ (0.11)
8.61% $ 37,272 1.98%+ (1.28)%+ 49% 1.98%+ $(0.09)
9.52 34,989 1.99+ (1.06)+ 39 1.99+ (0.05)
28.75 32,349 1.98 (0.92) 139 1.98 (0.07)
5.17 15,909 2.01 (1.29) 129 2.01 (0.09)
9.51 3,594 1.80+ (1.15)+ 159 2.01+ (0.03)
<CAPTION>
AVERAGE
COMMISSION RATE
PAID(c)
- -------------------------------------
<S> <C>
$0.0616
0.0599
N/A
N/A
N/A
$0.0616
$0.0616
0.0599
N/A
N/A
N/A
$0.0616
0.0599
N/A
N/A
N/A
$0.0616
0.0599
N/A
N/A
N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 54
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND NET INCREASE DIVIDENDS TOTAL NET ASSET
VALUE NET UNREALIZED IN NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN ASSET VALUE INVESTMENT AND END OF
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME DISTRIBUTIONS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS MANAGED INDEX FUND
PRIMARY A
Period ended
09/30/1996**
(unaudited)........... $10.00 $ 0.04 $ 0.70 $0.74 $(0.03) $ (0.03) $ 10.71
INVESTOR A
Period ended
09/30/1996**
(unaudited)........... $10.25 $ 0.00(a) $ 0.49 $0.49 $(0.03) $ (0.03) $ 10.71
</TABLE>
- ---------------
* Nations Managed Index Fund's Primary A and Investor A Shares commenced
operations on July 31, 1996 and September 3, 1996, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
(a) Amount represents less than $0.01 per share.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 55
NATIONS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME PORTFOLIO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER AVERAGE INCOME
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
7.44% $ 21,519 0.71%+ 2.03%+ 0% 0.50%+ $ 0.03
4.82% $ 50 0.96%+ 1.78%+ 0% 0.75%+ $ 0.00(a)
<CAPTION>
AVERAGE
COMMISSION RATE
PAID(b)
- -----------------------------------------------------
<S> <C>
$0.0238
$0.0238
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 56
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund Trust (the "Trust") and Nations Fund, Inc. (the "Company") are
registered under the Investment Company Act of 1940, as amended, (the "1940
Act"), as open-end investment companies. As of the date of this report, the
Trust offers thirty-two separate portfolios and the Company offers five separate
portfolios. The information presented in these financial statements pertains
only to the following funds: Nations Balanced Assets Fund, Nations Equity Income
Fund, Nations Value Fund, Nations Equity Index Fund, Nations Disciplined Equity
Fund, Nations Capital Growth Fund, Nations Emerging Growth Fund and Nations
Managed Index Fund (each a "Fund" and collectively, the "Funds"). The financial
statements for the remaining funds of the Trust and the Company are presented
under separate cover. The Funds (except Nations Equity Index Fund and Nations
Managed Index Fund) currently offer five classes of shares: Primary A Shares,
Primary B Shares, Investor A Shares, Investor C Shares and Investor N Shares.
Nations Equity Index Fund currently offers Primary A Shares, Primary B Shares
and Investor A Shares, and Nations Managed Index Fund currently offers Primary A
shares, Primary B Shares, Investor A Shares and Investor C Shares. Shareholders
of a Fund have equal voting rights on matters affecting all shareholders of the
Fund equally. In addition, each class of shares of a Fund has exclusive voting
rights on matters that relate solely to its class, and separate voting rights on
matters in which the interests of one class of shares differ from the interests
of any other class. The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Funds
in the preparation of their financial statements.
Securities Valuation: The Funds' portfolio securities which are traded on a
recognized stock exchange are valued at the last sale price on the securities
exchange on which such securities are primarily traded or at the last sale price
on the national securities market. Securities traded only on over-the-counter
markets are valued on the basis of the closing over-the-counter bid prices or,
if no sale occurred on such day, at the mean of the current bid and asked
prices. Certain securities may be valued by one or more principal market makers.
Restricted securities, securities for which market quotations are not readily
available and other assets are valued at fair market value under the supervision
of the Board of Trustees or the Board of Directors. Short-term investments that
mature in 60 days or less are valued at amortized cost.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
This arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral is at
least equal at all times to the total amount of the repurchase obligations,
including interest. Generally, in the event of a counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There would be a
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its right to dispose of the collateral securities, including the risk
of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its right. Unless permitted by the
Securities and Exchange Commission, the Fund will not enter into repurchase
agreements with the investment adviser, the distributor or any of their
affiliates. The Funds' investment adviser, acting under the supervision of the
Board of Trustees or the Board of Directors, monitors the value of the
collateral received as well as the creditworthiness of those banks and dealers
with which the Funds enter into repurchase agreements to evaluate potential
risks.
Futures Contracts: The Nations Equity Index Fund and Nations Managed Index Fund
may invest in futures contracts for the purpose of hedging against changes in
values of the Fund's securities or changes in the prevailing levels of interest
rates or currency exchange rates or for gaining exposure to the equity market.
Upon entering into a futures contract, the Fund is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount. This is known as the "initial margin." Subsequent payments
("variation margin") are made or received by the Fund each day, depending on the
daily fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as unrealized gains or losses by "marking-to-market" on
a daily basis to reflect the market value of the contract at the end of each
day. The Fund recognizes a realized gain or loss when the contract is closed
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract.
54
<PAGE> 57
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Risks arise in the possible movement of the securities or indices underlying
those investments. Risks also include the possibility that there may not be a
liquid secondary market for these contracts, that a change in the value of the
contract may not correlate with changes in the value of the underlying
securities or that the counterparty to a contract may default on its obligation
to perform.
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Realized gains and losses are computed on
the specific identification of the securities sold. Interest income, adjusted
for amortization of market discounts and premiums on investments and
amortization of original issue discounts on the effective yield method, is
earned from the settlement date and is recorded on an accrual basis. Dividend
income is recorded on the 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 asset value of each class of shares.
Dividends and Distributions to Shareholders: It is the policy of each Fund to
declare and pay dividends from net investment income each calendar quarter. Each
Fund will distribute net realized capital gains (including net short-term
capital gains), unless offset by any available capital loss carryforward,
annually after the fiscal year in which the income is earned. Additional
distributions of net investment income and capital gains may be made at the
discretion of the Board of Trustees or the Board of Directors in order to avoid
application of the 4% non-deductible Federal excise tax. Income distributions
and capital gain distributions on a Fund level are determined in accordance with
applicable Federal income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Fund, timing differences and differing characterization of distributions made by
the Fund as a whole.
Federal Income Tax: Each Fund intends to qualify as a registered investment
company by complying with the requirements of the Internal Revenue Code of 1986,
as amended, applicable to registered investment companies and by distributing
substantially all of its earnings to its shareholders. Therefore, no Federal
income or excise tax provision is applicable.
Expenses: General expenses of the Trust or the Company are allocated to the
relevant Funds based upon relative net assets. Operating expenses directly
attributable to a Fund or class of shares are charged to the respective Fund's
or class's operations. Expenses of each Fund not directly attributable to the
operations of any class of shares are prorated among the classes based on the
relative average net asset value of each class of shares.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
The Trust and the Company each have, on behalf of its Funds, entered into an
investment advisory agreement ("Investment Advisory Agreement") with NationsBanc
Advisors, Inc. ("NBAI"), a wholly-owned subsidiary of NationsBank,
N.A.("NationsBank"), pursuant to which NBAI provides investment advisory
services to the Funds. Under the terms of these Investment Advisory Agreements,
NBAI is entitled to receive an advisory fee at the following annual rates of the
average daily net asset value of each Fund:
<TABLE>
<CAPTION>
ANNUAL RATE
----------
<S> <C>
Nations Balanced Assets Fund, Nations Value Fund, Nations Disciplined Equity Fund,
Nations Capital Growth Fund and Nations Emerging Growth Fund.................... 0.75%
Nations Equity Index Fund and Nations Managed Index Fund.......................... 0.50%
</TABLE>
<TABLE>
<CAPTION>
FEES ON
FEES ON ASSETS BETWEEN FEES ON
ASSETS UP TO $100 AND ASSETS EXCEEDING
$100 MILLION $250 MILLION $250 MILLION
---------------------------------------------------
<S> <C> <C> <C>
Nations Equity Income Fund.......................... 0.75% 0.70% 0.60%
</TABLE>
The Trust and the Company each have entered into sub-advisory agreements
("Sub-Advisory Agreements'), with NBAI and TradeStreet Investment Associates,
Inc. ("TradeStreet"), a wholly-owned subsidiary of NationsBank. Under the
55
<PAGE> 58
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
terms of these Sub-Advisory Agreements, TradeStreet is entitled to receive from
NBAI a sub-advisory fee for each Fund at the following annual rates of each
Fund's average daily net asset value:
<TABLE>
<CAPTION>
ANNUAL RATE
----------
<S> <C>
Nations Balanced Assets Fund...................................................... 0.25%
Nations Equity Income Fund........................................................ 0.20%
Nations Value Fund................................................................ 0.25%
Nations Equity Index Fund......................................................... 0.10%
Nations Disciplined Equity Fund................................................... 0.25%
Nations Capital Growth Fund....................................................... 0.25%
Nations Emerging Growth Fund...................................................... 0.25%
Nations Managed Index Fund........................................................ 0.10%
</TABLE>
Stephens Inc. ("Stephens") serves as the administrator of the Trust and the
Company pursuant to separate administration agreements ("Administration
Agreements"). First Data Investor Services Group, Inc.("First Data"), a
wholly-owned subsidiary of First Data Corporation, serves as the
co-administrator of the Trust and the Company pursuant to separate co-
administration agreements ("Co-Administration Agreements"). Pursuant to the
Administration and Co-Administration Agreements, the administrator and the
co-administrator are entitled to receive a combined fee, computed daily and paid
monthly, at the annual rate of 0.10% of the average daily net asset value of the
investment portfolios of the Trust and the Company and the investment portfolios
of Nations Fund Portfolios, Inc. (another registered open-end investment company
which is a part of the Nations Fund family) on a combined basis. NationsBank
serves as the sub-administrator of the Trust and the Company pursuant to a
sub-administration agreement with Stephens. For the six months ended September
30, 1996, Stephens earned $1,058,608 from the Funds for its administration
services, of which $173,361 was paid to NationsBank for its administration
services.
The investment adviser, sub-adviser, administrator and co-administrator may,
from time to time, reduce their fees payable by each Fund (either voluntarily or
pursuant to applicable state limitations). For the six months ended September
30, 1996, the investment adviser voluntarily waived fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED
BY ADVISER
----------
<S> <C>
Nations Equity Index Fund......................................................... $ 591,161
Nations Managed Index Fund........................................................ 12,187
</TABLE>
NationsBank of Texas, N.A.("NationsBank of Texas") acts as the custodian for the
Funds and, for the six months ended September 30, 1996, earned $382,045 for
providing custodial services. First Data serves as the transfer agent for the
Funds' shares. NationsBank of Texas acts as the sub-transfer agent for the
Primary Shares of the Funds and, for the six months ended September 30, 1996,
earned approximately $21,226 for providing transfer agent services.
Stephens serves as distributor of the Funds' shares. For the six months ended
September 30, 1996, the Funds were informed that the distributor received
$597,771 in contingent deferred sales charges from Investor A, Investor C and
Investor N Shares of the Funds. A substantial portion of these fees are paid to
affiliates of NationsBank.
No officer, director or employee of NBAI, TradeStreet, Stephens, First Data or
any affiliate thereof, receives any compensation from the Trust or the Company
for serving as a trustee, director or officer of the Trust or the Company. The
Trust and the Company pay each trustee or director an annual fee of $1,000
($3,000 for the Chairman of the Board), plus $500 per Fund and an additional
$1,000 for each in-person board meeting, and $500 for each telephonic board
meeting attended. The Trust and the Company also reimburse expenses incurred by
each trustee or director in attending such meetings.
The Trust's and the Company's eligible trustees or directors, respectively, may
participate in a nonqualified deferred compensation plan and retirement plan
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
56
<PAGE> 59
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
funds are selected, to the rate of return of Nations Treasury Fund, a Fund of
the Company. The expense for the deferred compensation plan is included in the
"Trustees'/Directors' fees and expenses" line of the Statements of Operations.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust and the Company each have adopted shareholder administration plans
(each an "Administration Plan") for Primary B Shares of each Fund; shareholder
servicing and distribution plans pursuant to Rule 12b-1 under the 1940 Act for
Investor A Shares of each Fund ("Investor A Plan"); a shareholder servicing plan
("Servicing Plan") for Investor C Shares and Investor N Shares of each Fund
(except Nations Equity Index Fund); and a distribution plan ("Distribution
Plan") pursuant to Rule 12b-1 under the 1940 Act for Investor C Shares and
Investor N Shares of each Fund (except Nations Equity Index Fund). The
Administration Plan permits the Funds to compensate institutions for shareholder
administration services provided to their customers that own Primary B Shares.
The Investor A Plan permits the Funds to compensate (i) servicing agents and
selling agents that have entered into a servicing agreement with the Funds for
services provided to their customers that own Investor A Shares and (ii)
Stephens for distribution-related expenses incurred in connection with Investor
A Shares. The Servicing Plan permits the Funds to compensate servicing agents
for services provided to their customers that own Investor C Shares and Investor
N Shares, respectively. The Distribution Plan permits the Funds to compensate or
reimburse Stephens for any activities or expenses primarily intended to result
in the sale of the Funds' Investor C Shares or Investor N Shares, respectively.
Payments under the plans are accrued daily and paid monthly at a rate set from
time to time by the Funds. Fees paid pursuant to the plans are charged as
expenses of Primary B Shares, Investor A Shares, Investor C Shares and Investor
N Shares, respectively, of each Fund as accrued.
For the six months ended September 30, 1996, the effective rates paid by the
Funds, as a percentage of average daily net assets, pursuant to the plans are as
follows:
<TABLE>
<CAPTION>
PRIMARY B INVESTOR C INVESTOR C INVESTOR N INVESTOR N
ADMINISTRATION INVESTOR A DISTRIBUTION SERVICING DISTRIBUTION SERVICING
FUND PLAN PLAN PLAN PLAN PLAN PLAN
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nations Balanced Assets Fund.............. 0.50% 0.25% 0.25% 0.25% 0.50% 0.25%
Nations Equity Income Fund................ 0.50 0.25 0.25 0.25 0.50 0.25
Nations Value Fund........................ 0.50 0.25 0.25 0.25 0.50 0.25
Nations Equity Index Fund................. 0.50 0.25 N/A N/A N/A N/A
Nations Disciplined Equity Fund........... 0.50 0.25 0.25 0.25 0.75 0.25
Nations Capital Growth Fund............... 0.50 0.25 0.25 0.25 0.75 0.25
Nations Emerging Growth Fund.............. 0.50 0.25 0.25 0.25 0.75 0.25
Nations Managed Index Fund................ -- 0.25 -- -- N/A N/A
</TABLE>
A substantial portion of the fees paid pursuant to the plans described above are
paid to affiliates of NationsBank and NBAI.
4. PURCHASES AND SALES OF SECURITIES.
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. government securities and short-term investments, for the six months ended
September 30, 1996 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------------
<S> <C> <C>
Nations Balanced Assets Fund....................................... $167,826,394 $155,731,217
Nations Equity Income Fund......................................... 168,734,996 251,804,503
Nations Value Fund................................................. 383,455,034 296,612,578
Nations Equity Index Fund.......................................... 258,627,923 14,579,308
Nations Disciplined Equity Fund.................................... 97,601,776 98,700,420
Nations Capital Growth Fund........................................ 316,306,275 493,183,153
Nations Emerging Growth Fund....................................... 158,712,768 170,199,455
Nations Managed Index Fund......................................... 19,767,881 --
</TABLE>
57
<PAGE> 60
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The aggregate cost of purchases and proceeds from sales of long-term U.S.
government securities for the six months ended September 30, 1996 was as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------------
<S> <C> <C>
Nations Balanced Assets Fund....................................... $126,568,614 $146,149,011
</TABLE>
At September 30, 1996, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes was as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
-----------------------------
<S> <C> <C>
Nations Balanced Assets Fund....................................... $ 6,643,885 $ 4,199,430
Nations Equity Income Fund......................................... 29,071,263 4,983,364
Nations Value Fund................................................. 241,060,181 10,646,487
Nations Equity Index Fund.......................................... 65,734,313 5,824,575
Nations Disciplined Equity Fund.................................... 19,363,201 632,648
Nations Capital Growth Fund........................................ 160,164,468 8,668,548
Nations Emerging Growth Fund....................................... 74,149,025 7,703,148
Nations Managed Index Fund......................................... 1,610,927 200,045
</TABLE>
5. SHARES OF BENEFICIAL INTEREST/CAPITAL STOCK.
As of September 30, 1996, an unlimited number of shares without par value were
authorized for the Trust and 270,000,000,000 shares of $.001 par value capital
stock were authorized for the Company. The Trust's Declaration of Trust
authorizes the Board of Trustees to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedule of Capital Stock Activity.
6. ORGANIZATION COSTS.
The Funds bear all costs in connection with their organization, including the
fees and expenses of registering and qualifying their shares for distribution
under Federal and state securities regulations. All such costs are being
amortized on the straight-line method over a period of five years from
commencement of operations. In the event that any of the shares issued by the
Funds to their sponsor prior to the commencement of the Funds' public offering
("initial shares") are redeemed during such amortization period by any holder
thereof, the Funds will be reimbursed by the holder for any unamortized
organization costs in the same proportion as the number of initial shares
redeemed bears to the number of initial shares outstanding at the time of
redemption. All such costs for Nations Equity Income Fund, Nations Value Fund
and Nations Disciplined Equity Fund have been fully amortized.
7. LINE OF CREDIT.
The Trust and the Company participate in a $25 million line of credit provided
by Mellon Bank, N.A. ("Mellon Bank") under a Line of Credit Agreement (the
"Agreement") dated March 17, 1996. 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. Under the Agreement, each Fund may borrow up to the lesser of $10
million or 5% of its net assets. Interest on borrowings is payable either at the
higher of Mellon Bank's Money Market Rate or the London Interbank Offered Rate
(LIBOR) plus 0.25% on an annualized basis. The Funds and the other affiliated
entities which are parties to the Agreement are charged an aggregate commitment
fee of 0.25% per annum on the amount of the line of credit. Each Fund shall be
liable only for that portion of any commitment fee with respect to such Fund and
shall not be liable for the portion of the commitment fee of any other Fund. The
Agreement requires, among other things, that each participating Fund maintain a
ratio of no less than 4 to 1 of net assets (not including funds borrowed
pursuant to the Agreement) to aggregate amount of indebtedness permitted
pursuant to the Agreement.
58
<PAGE> 61
NATIONS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At September 30, 1996, there were no loans outstanding under this Agreement.
During the six months ended September 30, 1996, the following Funds had
borrowings under the Agreement:
<TABLE>
<CAPTION>
AVERAGE
MAXIMUM AVERAGE DEBT INTEREST RATE
AMOUNT AMOUNT AVERAGE PER --------------- INTEREST
FUND OUTSTANDING OUTSTANDING SHARES SHARE HIGH LOW EXPENSE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Nations Capital Growth Fund...... $9,400,000 $73,771 57,185,783 $ 0.00(a) 5.90% 5.50% $2,100
</TABLE>
(a) Amount represents less than $0.01 per share.
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the six month
period ended September 30, 1996.
8. CAPITAL LOSS CARRYFORWARD.
At March 31, 1996, the Nations Disciplined Equity Fund had available for Federal
income tax purposes unused capital losses of $29,908 expiring March 31, 2004.
9. REORGANIZATION.
Nations Capital Growth Fund the ("Acquiring Fund") acquired the assets and
certain liabilities of Peachtree Equity Fund the ("Acquired Fund") in a tax-free
exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization
approved by the Acquired Fund's shareholders. Total shares issued by the
Acquiring Fund, the value of the shares issued by the Acquiring Fund, the total
net assets of the Acquired Fund and the Acquiring Fund and any unrealized
depreciation included in the Acquired Fund's total net assets at the acquisition
date are as follows:
<TABLE>
<CAPTION>
VALUE OF TOTAL NET
SHARES SHARES TOTAL NET TOTAL NET ASSETS OF ACQUIRED
ISSUED BY ISSUED BY ASSETS OF ASSETS OF ACQUIRING FUND
ACQUIRING ACQUIRED ACQUISITION ACQUIRING ACQUIRING ACQUIRED ACQUIRING FUND AFTER UNREALIZED
FUND FUND DATE FUND FUND FUND FUND ACQUISITION (DEPRECIATION)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nations
Capital Peachtree
Growth Equity
Fund Fund 09/27/1996 6,613,086 $95,758,235 $95,758,235 $697,812,337 $793,570,572 $(24,195,257)
</TABLE>
59
<PAGE> 62
THE NATIONS FUND FAMILY
EQUITY FUNDS
GROWTH
Nations Capital Growth Fund
Nations Disciplined Equity Fund
Nations Emerging Growth Fund
Nations Emerging Markets Fund
Nations Equity Index Fund
Nations International Equity Fund
Nations Managed Index Fund
Nations Pacific Growth Fund
GROWTH AND INCOME
Nations Balanced Assets Fund
Nations Equity Income Fund
Nations Value Fund
BOND FUNDS
INCOME
Nations Diversified Income Fund
Nations Global Government Income Fund
Nations Government Securities Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund
Nations Strategic Fixed Income Fund
TAX-EXEMPT INCOME
Nations Florida Municipal Bond Fund
Nations Florida Intermediate Municipal Bond Fund
Nations Georgia Municipal Bond Fund
Nations Georgia Intermediate Municipal Bond Fund
Nations Maryland Municipal Bond Fund
Nations Maryland Intermediate Municipal Bond Fund
Nations North Carolina Municipal Bond Fund
Nations North Carolina Intermediate Municipal Bond Fund
Nations South Carolina Municipal Bond Fund
Nations South Carolina Intermediate Municipal Bond Fund
Nations Tennessee Municipal Bond Fund
Nations Tennessee Intermediate Municipal Bond Fund
Nations Texas Municipal Bond Fund
Nations Texas Intermediate Municipal Bond Fund
Nations Virginia Municipal Bond Fund
Nations Virginia Intermediate Municipal Bond Fund
Nations Municipal Income Fund
Nations Intermediate Municipal Bond Fund
Nations Short-Term Municipal Income Fund
MONEY MARKET FUNDS
Nations Government Money Market Fund
Nations Prime Fund
Nations Tax Exempt Fund
Nations Treasury Fund
For more complete information, including charges and expenses, please contact
your investment representative or Nations Fund at (800) 982-2271 for a current
prospectus. Please read the prospectus carefully before you invest or send
money.
<PAGE> 63
This report is submitted for the general information of shareholders of Nations
Fund. This material must be accompanied or preceded by a Nations Fund
prospectus.
<PAGE> 64
------------------
NATIONS BULK
- ------- U.S. POSTAGE
PAID
P.O. Box 34602 BOSTON, MA
Charlotte, NC 28234-4602 PERMIT NO.
Toll Free 1-800-982-2271 54201
------------------
