<PAGE> 1
[NATIONS FUND FAMILY LOGO]
NATIONS PRIME FUND
NATIONS TREASURY FUND
NATIONS EQUITY INCOME FUND
NATIONS GOVERNMENT SECURITIES FUND
NATIONS INTERNATIONAL EQUITY FUND
SEMI
ANNUAL
For the Period Ended November 30, 1995
REPORT
<PAGE> 2
- --------------------------------------------------------------------------------
NOT MAY LOSE VALUE
FDIC-
INSURED NO BANK GUARANTEE
- --------------------------------------------------------------------------------
NATIONS FUND DISTRIBUTOR: STEPHENS INC. STEPHENS INC., WHICH IS NOT AFFILIATED
WITH NATIONSBANK, 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: NATIONSBANK, N.A. ("NATIONSBANK")
<PAGE> 3
NATIONS FUND, INC.
DEAR SHAREHOLDER:
We are pleased to present the semiannual report for Nations Fund, Inc. for the
period ended November 30, 1995. During this period of bullish growth across many
financial markets, assets of the Nations Fund family of mutual funds surpassed
the $17 billion level.
Overall, 1995 marked a period that many investors will look back upon with great
fondness in the years to come. It offered the potential for investors to enjoy
significant returns in an environment marked by subdued volatility. As we look
forward to the opportunities 1996 presents, it is appropriate to reflect upon
the conclusions that can be drawn from market performance over the past twelve
months.
FINANCIAL MARKETS SUMMARY
The past year produced ideal market conditions for U.S. financial assets.
Historians might well cite 1995 as the definitive case study of a bull market.
Indeed, four factors coincided to make 1995 memorable. The U.S. economy grew at
a moderate pace. Inflation slowed more than most observers anticipated. Both the
executive and legislative branches of the U.S. government embraced a commitment
to reduce the federal deficit and U.S. corporations continued to produce strong
profitability. As a result, those who owned financial assets enjoyed strong
performance without having this performance eroded or undermined by the threats
of an overheated economy, creeping inflation or unbridled federal spending.
How could U.S. corporations produce strong profits without the pricing power of
inflation, the tail wind of economic strength or the catalyst of government
spending? Clearly, productivity and restructuring played an important role as
U.S. companies expanded margins. Moreover, profits earned abroad helped to
expand earnings for many companies. And the technology sector of the economy
played an important role as computers and telecommunications helped reshape many
companies.
On the international front, foreign stock markets lagged behind the U.S. equity
bull market. Foreign bond markets, with the exception of Japan, performed in
line with the U.S. bond market, providing double digit returns for bond
investors. A closer look at stock market facts actually show that foreign market
returns for 1995 were in line with their 1994 returns when foreign markets
outperformed the U.S. market by a sizable margin. The generally low correlation
between the U.S. and foreign stock markets continues to provide opportunities
for the portfolio diversification desired by many prudent investors. It is the
primary reason that diversifying overseas has become an important asset
allocation decision today.
The year also produced a record number of strategic mergers both domestically
and internationally. In numerous industries, companies forged ties in order to
build long-term profitability. Among others, Banking, Broadcasting, Basic
Industry, Software and Health Care experienced strong deal activity. Unlike
prior merger cycles, most of these deals were not merely the result of financial
engineering.
Overall, 1995 was an important reminder regarding the value of long-term
investing. As we entered 1995, investors might have been discouraged by the
meager U.S. returns of the prior year. Moreover, some investors might have been
tempted to take profits early in the year as the U.S. rally unfolded. The
winners in 1995 appear to have been those individuals and institutions with the
patience and vision for the long haul.
1
<PAGE> 4
FINANCIAL OUTLOOK
Investors can reap significant rewards when long-term investment discipline
intersects with ideal market conditions. This was the story for 1995.
But what about 1996? Must a bear market necessarily follow the bull market of
1995? Can interest rates continue to fall (and bond prices rise) and stocks
continue to rally at a torrid pace? We do not think that a strong bull market
necessarily must be followed by a big market sell-off. As long as the financial
environment remains favorable, prices can continue to appreciate. However, we do
not anticipate the pace of appreciation to be nearly as rapid or steady.
What about investing overseas? Should we expect a reversal of last year with
foreign stock markets outperforming U.S. stock markets in 1996? Over the long
term, there is a close correlation between real economic growth rates achieved
by a country and the performance of that country's stock market. Many of the
world's fastest growing economies are located in the Pacific Rim and it is here
where we see some of the most exciting opportunities for 1996 and beyond. We
also see opportunities in Japan, the world's largest economy and stock market
outside the United States, as it recovers from its recent problems.
Fundamentally, the fast growing Pacific Rim markets should outperform other
world markets, while the more developed countries will be reacting to the same
investment environment that exists in the United States.
While moderate economic conditions, low inflation and fiscal restraint are
likely to persist in 1996, corporate profitability is likely to slow. As a
result, we should not expect to see a market rally that is as broad as 1995, and
we should expect to see periodic corrections in both stocks and bonds. However,
even without strong earnings as an ally, the general market environment should
be positive enough to provide the potential for reasonable returns for investors
in the new year. Of course, it is not possible to predict market activity with
any certainty.
Thank you for placing your confidence in Nations Fund. We hope the information
contained in this report proves valuable as you pursue your investment goals.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman
of the Board
November 30, 1995
2
<PAGE> 5
We are pleased to present the following general investment strategies that
investors may want to consider. Specific investment decisions should always be
based on an analysis of your individual financial goals, tolerance for risk, and
investment timeframe.
PREPARE FOR 1996 WITH A
QUICK FINANCIAL REVIEW
- --------------------------------------------------------------------------------
Nineteen hundred ninety-five was an exciting year for investors. The Dow Jones
Industrial Average (DJIA) surged past the 5000 mark, breaking record after
record along the way. The National Association of Securities Dealers Automated
Quotations system (NASDAQ), Standard & Poor's Corporation 500 Composite Stock
Price Index (S&P 500) and New York Stock Exchange (NYSE) indices also reached
record levels. During this same period, falling interest rates resulted in a
bond rally, driving bond prices up and bond yields down.
DO CHANGES IN MARKET CONDITIONS WARRANT CHANGES IN YOUR
INVESTMENT STRATEGY?
Not necessarily. Short-term market performance should mean very little if your
investment goals are long-term in nature. For example, before leaping to take
profits when the stock market reaches new highs, as a long-term investor, you
should always consider why you invested in stocks in the first place.
If you're seeking long-term gains, a dramatic shift in your strategy today may
lead to difficult decisions later regarding when to get back into the stock
market -- something that is very difficult to time. That's why most financial
advisers encourage a proactive, rather than reactive, approach to investing. A
proactive approach involves careful planning, goal setting and a long-term
outlook.
As you begin to put your financial affairs in order for the new year, consider
the following:
HAVE YOUR INVESTMENT OBJECTIVES CHANGED?
A new job, retirement, the birth of a child or loss of a loved one are among the
many lifestyle changes that can have a significant impact on your finances.
Perhaps you need to establish a college fund for a child or grandchild. Or, as
you're approaching retirement, you're seeking a more conservative investment
strategy geared toward asset preservation. These are valid reasons to reassess
your investment goals and objectives as well as how your assets are allocated
among the various investment classes.
ARE YOUR INVESTMENT ASSETS PROPERLY ALLOCATED?
Maintaining a portfolio that is adequately diversified among the primary asset
classes is an important investment principle. In fact, according to an
independent study of 82 pension funds over a 10-year period, over 91% of an
investment portfolio's return is driven by asset allocation.*
CAN YOU REDUCE YOUR TAXABLE INCOME?
An inheritance, a significant salary increase or relocating to another state can
impact your tax situation. If you need to reduce the amount of your income that
is subject to taxes, consider tax-exempt investments. Investing in municipal
bond funds may be one effective choice because the income you earn on municipal
bond funds is generally exempt from federal income taxes.** Also state-specific
municipal bond funds seek income that is exempt from both federal, state and
local income taxes.
- ---------------
* Source: Financial Analysts Journal, May/June 1991: Determinants Of Portfolio
Performance II: An Update, by Gary Brinson, Brian Singer and Gilbert Beebower.
** Income derived from municipal bond funds may be subject to state and local
taxes and, for certain investors, may be subject to the federal Alternative
Minimum Tax (AMT).
3
<PAGE> 6
ARE YOUR RETIREMENT PLANS ON TRACK?
Many financial experts agree that you will need 80% of your pre-retirement
income to maintain a comfortable lifestyle during your retirement years.
However, the Social Security Administration reports that many Americans save
only one-third of what they will need. While Social Security benefits are an
important component of retirement assets, most of us realize that these benefits
are not likely to be enough. Even combined with your company pension plan, you
may still fall short. Greater emphasis will continue to be placed on personal
investments to complete the retirement picture.
Proper asset allocation, one of the strongest drivers of portfolio return, is
particularly important where retirement investments are concerned. It's
important to determine if your retirement assets are properly allocated to
provide the growth you need without taking on undue risk.
WHAT'S RIGHT FOR YOU?
Before making any changes in your investment strategy, take time to understand
the relationship between investment risk and investment reward. Generally, the
greater the potential for investment reward, such as growth from stock
investments, the greater the risk. Consider whether your timeframe is adequate
to compensate for potential market downturns.
In determining the level of investment risk you are comfortable with, consider
the following:
- - STOCKS ARE LONG-TERM INVESTMENT VEHICLES. Since stocks offer the strongest
potential for growth among the asset classes, stock market investments are
generally suitable for pursuing long-term investment goals. Investors pursuing
short-term investment goals may wish to consider shifting assets toward
investments with greater price stability.
- - BOND INVESTMENTS OFFER GREATER STABILITY THAN STOCKS, BUT ARE NOT WITHOUT
RISK. The types of risk a bond investor will incur include credit risk and
interest-rate risk, both of which can affect a bond's price and yield. In
addition, while bonds generally are not as volatile as stocks, they also do
not offer the growth potential found in stock market investments. A portfolio
that contains only bond investments may hurt your potential to outpace
inflation over time.
- - INTERNATIONAL STOCKS AND BONDS OFFER GREATER DIVERSIFICATION. Although
international investing presents additional risks such as political, currency
and liquidity risk, the diversification benefits can increase the potential
for higher overall portfolio returns and lower portfolio risk.
- - AVOID PLACING ALL OF YOUR EGGS IN ONE BASKET. Spread your investment dollars
among stock, bond and money market investments to help reduce the risk and
impact of principal loss should a particular investment perform poorly.
4
<PAGE> 7
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 your financial
objectives or market conditions 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 NationsBank, N.A. The family was
designed to accommodate a wide variety of investment objectives across the
risk/reward spectrum.
LOGO
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 1-(800)
982-2271.
- ---------------
* The Nations Fund family also includes Nations Equity Index Fund, which seeks
to match the performance of the S&P 500 before fees and expenses.
5
<PAGE> 8
NATIONS FUND, INC.
Nations Prime Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -------------------------------------------------------------------
BANK OBLIGATIONS -- 5.6%
BANKER ACCEPTANCES -- 1.5%
<S> <C> <C> <C>
Bank of Tokyo:
$ 10,000,000 Discount note........ 01/12/96 $ 9,933,733
44,100,000 Discount note........ 01/22/96 43,736,273
10,000,000 Sanwa Bank Ltd. of New
York,
Discount note........ 01/26/96 9,911,333
--------------
63,581,339
--------------
CERTIFICATES OF DEPOSIT -- EURO -- 1.7%
Mitsubishi Bank, Ltd.:
20,000,000 5.700%............... 12/13/95 19,998,960
10,000,000 5.850%............... 01/29/96 10,000,228
40,000,000 5.860%............... 01/31/96 39,999,717
--------------
69,998,905
--------------
CERTIFICATES OF DEPOSIT -- YANKEE -- 2.4%
50,000,000 Bank of New York,
5.875%............... 10/25/96 50,000,000
50,000,000 Societe Generale,
(New York),
5.950%............... 10/23/96 50,000,000
--------------
100,000,000
--------------
TOTAL BANK OBLIGATIONS
(Cost
$233,580,244)........ 233,580,244
==============
CORPORATE OBLIGATIONS -- 72.0%
COMMERCIAL PAPER -- 48.9%
A.H. Robbins Company:
23,500,000 Discount note (a).... 12/06/95 23,481,167
30,000,000 Discount note (a).... 02/07/96 29,677,000
25,000,000 Alpha Finance
Corporation Ltd.,
Discount note (a).... 03/15/96 24,584,375
American Home Food
Products Corporation:
13,710,000 Discount note (a).... 12/13/95 13,683,631
38,355,000 Discount note (a).... 12/21/95 38,232,264
30,000,000 Discount note (a).... 02/02/96 29,698,125
10,000,000 Discount note (a).... 02/06/96 9,893,917
12,500,000 Discount note (a).... 02/07/96 12,364,944
American Home Products
Corporation:
7,585,000 Discount note (a).... 02/06/96 7,504,536
15,000,000 Discount note (a).... 02/07/96 14,838,500
50,000,000 Ameritech Corporation,
Discount note........ 04/15/96 48,953,555
30,000,000 Associates Corporation
of America,
Discount note........ 04/15/96 30,000,000
Barnett Banks, Inc.:
12,000,000 Discount note........ 12/11/95 11,980,767
21,000,000 Discount note........ 01/05/96 20,881,583
17,500,000 Burmah Castrol Finance
Corporation,
Discount note (a).... 01/11/96 17,387,193
15,500,000 Caterpillar Financial
Services Corporation,
Discount note........ 12/06/95 15,487,342
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -------------------------------------------------------------------
CORPORATE OBLIGATIONS -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
<S> <C> <C> <C>
$ 25,000,000 Chemical Bank
Corporation,
Discount note........ 02/12/96 $ 24,713,576
Chrysler Financial
Corporation:
25,000,000 Discount note........ 12/08/95 24,971,757
20,000,000 Discount note........ 12/16/95 19,942,150
25,000,000 Discount note........ 12/18/95 24,931,646
25,000,000 Discount note........ 12/18/95 24,931,528
25,000,000 Discount note........ 12/19/95 24,927,625
30,000,000 CIT Group Holdings,
Discount note........ 02/09/96 29,667,500
30,000,000 CIT Housing Group
Holdings,
Discount note........ 02/15/96 29,639,000
Copley Financing
Corporation:
14,000,000 Discount note (a).... 12/21/95 13,954,889
22,950,000 Discount note (a).... 12/29/95 22,846,470
25,000,000 Countrywide Funding
Corporation,
Discount note........ 12/20/95 24,924,000
16,500,000 CSR America Inc.,
Discount note........ 01/29/96 16,346,674
15,000,000 Dean Witter Discover &
Company,
Discount note........ 12/15/95 14,963,833
Dynamic Funding
Corporation:
10,000,000 Discount note........ 01/17/96 9,924,670
10,000,000 Discount note........ 03/07/96 9,850,458
10,000,000 Discount note........ 03/14/96 9,839,956
Finova Capital
Corporation:
20,000,000 Discount note........ 01/19/96 19,838,028
10,000,000 Discount note........ 01/26/96 9,907,133
10,000,000 Discount note........ 01/30/96 9,900,833
50,000,000 Discount note........ 01/30/96 49,504,167
20,000,000 Discount note........ 01/31/96 19,797,683
General Electric
Capital Corporation:
50,000,000 Discount note........ 02/09/96 49,446,806
45,000,000 Discount note........ 02/16/96 44,453,300
General Motors
Acceptance Corporation:
25,000,000 Discount note........ 12/15/95 24,944,000
50,000,000 Discount note........ 02/15/96 49,413,639
25,000,000 Discount note........ 08/12/96 24,043,750
30,000,000 Generale Bank,
Discount note........ 03/15/96 29,507,375
25,000,000 Honeywell, Inc.,
Discount note........ 12/11/95 24,956,389
60,000,000 ITT Financial Corporation,
Discount note........ 12/01/95 60,000,000
50,000,000 Koch Industries,
Discount note (a).... 12/01/95 50,000,000
New Center Asset Trust:
100,000,000 Discount note........ 12/01/95 100,000,000
50,000,000 Discount note........ 12/14/95 49,896,361
50,000,000 Discount note........ 12/15/95 49,888,389
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 9
NATIONS FUND, INC.
Nations Prime Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- --------------------------------------------------------------------
CORPORATE OBLIGATIONS -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
<S> <C> <C> <C>
NYNEX Corporation:
$ 30,000,000 Discount note.......... 12/13/95 $ 29,942,600
20,000,000 Discount note.......... 12/14/95 19,957,967
25,000,000 Discount note.......... 12/21/95 24,920,417
25,000,000 Discount note.......... 01/11/96 24,836,000
15,000,000 Discount note.......... 01/12/96 14,900,600
30,000,000 Discount note.......... 01/18/96 29,768,200
30,000,000 Discount note.......... 02/09/96 29,663,416
20,000,000 NYNEX Credit Company,
Discount note.......... 01/10/96 19,870,000
22,000,000 Province of Quebec,
Discount note.......... 04/23/96 21,501,920
55,000,000 Reed Elsevier, Inc.,
Discount note (a)...... 12/01/95 55,000,000
30,000,000 Riverwoods Funding
Corporation,
Discount note.......... 02/12/96 29,653,250
Sears Roebuck
Acceptance Corporation:
25,000,000 Discount note.......... 02/28/96 24,656,979
25,000,000 Discount note.......... 03/08/96 24,610,722
Sharp Electronics
Corporation:
9,000,000 Discount note.......... 01/12/96 8,941,200
20,000,000 Discount note.......... 03/08/96 19,694,022
16,000,000 Sherwood Medical
Company,
Discount note (a)...... 02/15/96 15,807,129
Sumitomo Corporation of
America:
35,000,000 Discount note.......... 02/28/96 34,508,522
20,000,000 Discount note.......... 03/05/96 19,701,278
14,800,000 Discount note.......... 03/13/96 14,561,178
25,500,000 Discount note.......... 06/14/96 24,715,592
Toshiba International
Finance Inc. (UK):
6,283,000 Discount note.......... 12/11/95 6,273,209
25,700,000 Discount note.......... 01/16/96 25,510,519
16,100,000 Discount note.......... 01/17/96 15,973,557
11,400,000 Discount note.......... 02/15/96 11,261,376
24,300,000 Discount note.......... 02/22/96 23,977,856
Tri-Lateral Capital
(USA) Inc.:
14,000,000 Discount note (a)...... 12/14/95 13,970,678
20,846,000 Discount note (a)...... 01/29/96 20,640,673
100,000,000 UBS Finance (Delaware)
Inc.,
Discount note.......... 12/01/95 100,000,000
--------------
2,045,341,344
--------------
CORPORATE NOTES -- 23.1%
50,000,000 Barnett Banks, Inc.,
5.790%................. 07/22/96 50,000,000
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- --------------------------------------------------------------------
CORPORATE OBLIGATIONS -- (CONTINUED)
CORPORATE NOTES -- (CONTINUED)
<S> <C> <C> <C>
Bear Stearns &
Company, Inc.:
$ 25,000,000 5.920%+................ 12/01/95++ $ 25,000,000
25,000,000 5.530%+................ 12/05/95++ 25,000,000
25,000,000 5.913%+................ 02/09/96++ 25,000,000
50,000,000 6.016%+................ 02/22/96++ 50,002,770
CS First Boston:
25,000,000 5.870%+................ 12/01/95++ 25,000,000
25,000,000 6.030%+................ 12/01/95++ 25,000,000
25,000,000 5.882%+................ 12/02/95++ 25,000,000
50,000,000 5.813%+................ 12/12/95++ 50,000,000
50,000,000 5.863%+................ 05/22/96++ 50,000,000
General Electric
Capital Corporation:
30,000,000 6.100%+................ 12/01/95++ 30,001,162
50,000,000 6.100%+................ 12/01/95++ 50,000,000
9,000,000 4.615%................. 05/30/96 8,945,075
General Motors
Acceptance Corporation:
50,000,000 5.890%+................ 12/01/95++ 49,986,333
24,000,000 5.995%+................ 12/01/95++ 24,000,000
20,000,000 6.138%+................ 01/16/96++ 20,000,793
6,000,000 8.625%................. 07/15/96 6,090,709
Merrill Lynch &
Company Inc.:
24,500,000 5.870%+................ 12/01/95++ 24,500,000
100,000,000 5.930%+................ 12/01/95++ 100,000,000
25,000,000 5.940%+................ 12/01/95++ 25,000,000
50,000,000 5.520%+................ 12/05/95++ 50,000,000
5,000,000 Mitsubishi Electric
Finance Company,
5.100% (a)............. 02/16/96 4,983,065
50,000,000 PNC Bank,
5.450%+................ 12/05/95++ 50,000,000
Shawmut National Bank:
100,000,000 5.890%+................ 12/01/95++ 100,000,000
50,000,000 6.030%+................ 12/01/95++ 50,000,000
25,000,000 6.060%+................ 12/01/95++ 25,000,000
--------------
968,509,907
--------------
TOTAL CORPORATE
OBLIGATIONS
(Cost
$3,013,851,251)...... 3,013,851,251
=============
<CAPTION>
GUARANTEED INVESTMENT CONTRACTS -- 9.6%
<S> <C> <C> <C>
Allstate Life Insurance
Company:#
25,000,000 6.073%**+.............. 02/28/96++ 25,000,000
25,000,000 6.073%**+.............. 02/28/96++ 25,000,000
25,000,000 Anchor National Life
Insurance Company,#
6.183%**+.............. 02/28/96++ 25,000,000
Commonwealth Life
Insurance Company,
Inc.:#
62,000,000 6.090%**+.............. 05/28/96++ 62,000,000
10,000,000 6.090%**+.............. 05/28/96++ 10,000,000
60,000,000 Life Insurance Company
of Georgia,#
6.100%**+.............. 05/28/96++ 60,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 10
NATIONS FUND, INC.
Nations Prime Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
GUARANTEED INVESTMENT CONTRACTS -- (CONTINUED)
<S> <C> <C> <C>
Life Insurance Company
of Virginia:#
$ 50,000,000 5.871%**+............ 12/07/95++ $ 50,000,000
25,000,000 5.918%**+............ 12/07/95++ 25,000,000
25,000,000 5.918%**+............ 12/07/95++ 25,000,000
20,000,000 Peoples Security Life
Insurance Company,#
6.090%**+............ 05/28/96++ 20,000,000
50,000,000 Sun Life Insurance
Company of America,#
6.118%**+............ 05/28/96++ 50,000,000
25,000,000 Travelers Life
Insurance Company,#
5.940%**+............ 12/30/95++ 25,000,000
--------------
TOTAL GUARANTEED
INVESTMENT CONTRACTS
(Cost $402,000,000).... 402,000,000
============
PROMISSORY NOTE -- 1.2% (Cost $50,000,000)
50,000,000 Goldman Sachs
Group. L.P.**,
5.875%............... 04/16/96 50,000,000
============
TIME DEPOSIT -- EURO -- 1.2% (Cost $50,000,000)
50,000,000 First Union
National Bank,
5.906%............... 12/01/95 50,000,000
============
U.S. GOVERNMENT OBLIGATIONS -- 7.5%
Federal Home Loan Bank:
5,000,000 6.000%+.............. 12/01/95++ 5,000,000
18,000,000 4.911%+.............. 01/29/96++ 18,000,000
50,000,000 Federal National
Mortgage Association,
5.813%+.............. 09/27/96++ 50,000,000
Student Loan Marketing
Association:
20,000,000 5.650%+.............. 12/05/95++ 20,000,000
30,000,000 5.660%+.............. 12/05/95++ 30,000,000
11,600,000 5.670%+.............. 12/05/95++ 11,544,463
12,000,000 5.670%+.............. 12/05/95++ 12,000,000
47,500,000 5.690%+.............. 12/05/95++ 47,275,016
21,000,000 5.690%+.............. 12/05/95++ 20,966,101
70,000,000 5.780%+.............. 12/05/95++ 70,000,000
10,000,000 5.830%+.............. 12/05/95++ 10,000,000
20,000,000 6.080%+.............. 12/05/95++ 19,997,573
--------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(Cost $314,783,153).... 314,783,153
============
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
U.S. TREASURY OBLIGATION -- 0.4% (Cost $15,200,700)
<S> <C> <C> <C>
$ 15,000,000 U.S. Treasury Note,
7.875%............... 07/31/96 $ 15,200,700
============
<CAPTION>
SHARES
-----------
MONEY MARKET FUNDS -- 2.3%
<S> <C> <C> <C>
98,435,000 Dreyfus Cash Manage-
ment Plus Fund....... 98,435,000
266,000 Fidelity Institutional
Cash Portfolio....... 266,000
--------------
TOTAL MONEY MARKET
FUNDS
(Cost $98,701,000)... 98,701,000
============
TOTAL INVESTMENTS
(Cost $4,178,116,348*).............. 99.8% 4,178,116,348
OTHER ASSETS AND
LIABILITIES (NET)................... 0.2 7,663,662
----- --------------
NET ASSETS............................ 100.0% $4,185,780,010
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Restricted Security (Note 6).
+ Floating/variable rate note. The interest rate shown reflects the rate in
effect at November 30, 1995.
++ Reset date. Interest rates reset either daily, weekly, monthly, quarterly or
semi-annually.
# Security subject to a demand feature which allows the Fund to put the
security back to the issuer with notice ranging from 7-180 calendar days.
(a) Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 11
NATIONS FUND, INC.
Nations Treasury Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
U.S. TREASURY SECURITIES -- 29.0%
U.S. TREASURY BILLS -- 22.3%
<S> <C> <C> <C>
$ 75,000,000 Discount note#....... 12/07/95 $ 74,931,542
40,000,000 Discount note........ 12/14/95 39,919,111
120,000,000 Discount note#....... 12/21/95 119,628,056
75,000,000 Discount note#....... 01/11/96 74,542,451
50,000,000 Discount note#....... 02/08/96 49,464,292
70,000,000 Discount note#....... 05/02/96 68,373,100
25,000,000 Discount note#....... 05/30/96 24,303,024
95,000,000 Discount note#....... 07/25/96 91,602,671
80,000,000 Discount note#....... 08/22/96 76,802,333
45,000,000 Discount note#....... 10/17/96 42,871,592
--------------
662,438,172
--------------
U.S. TREASURY NOTES -- 6.7%
25,000,000 4.250%#.............. 12/31/95 24,954,323
45,000,000 4.625%#.............. 02/15/96 44,892,780
25,000,000 4.625%#.............. 02/29/96 24,916,009
20,000,000 4.250%............... 05/15/96 19,878,253
45,000,000 5.875%............... 05/31/96 44,976,057
25,000,000 7.875%............... 07/31/96 25,334,498
15,000,000 6.500%............... 09/30/96 15,103,692
--------------
200,055,612
--------------
TOTAL U.S. TREASURY
SECURITIES
(Cost $862,493,784).............. 862,493,784
==============
<CAPTION>
REPURCHASE AGREEMENTS -- FIXED RATE -- 82.8%
<S> <C> <C>
740,000,000 Agreement with Bankers Trust N.Y.
Corporation, 5.920% dated
11/30/95, to be repurchased at
$740,121,689 on 12/01/95,
collateralized by: $250,687,337
U.S. Treasury Bonds,
6.250% - 10.625% due
08/15/02 - 08/15/20;
$504,414,772 U.S. Treasury
Notes, 5.000% - 7.375% due
01/31/01 - 11/15/19............ 740,000,000
648,986,000 Agreement with CS First Boston
Corporation. Interest is
payable monthly. The agreement
is terminable by the Fund
daily. The final maturity date
of the agreement is 07/01/96,
collateralized by: various U.S.
Treasury Strips, having various
maturity dates ranging from
02/15/96 - 02/15/20##.......... 648,986,000
148,000,000 Agreement with Deutsche Bank
Financial Inc., 5.900% dated
11/30/95, to be repurchased at
$148,024,256 on 12/01/95,
collateralized by: $150,960,891
U.S. Treasury Notes,
5.125% - 8.125% due
03/31/96 - 08/15/05............ 148,000,000
148,000,000 Agreement with First Chicago
Corporation, 5.875% dated
11/30/95, to be repurchased at
$148,024,153 on 12/01/95,
collateralized by: $150,962,726
U.S. Treasury Note, 4.375% due
08/15/96....................... 148,000,000
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------
REPURCHASE AGREEMENTS -- FIXED RATE -- (CONTINUED)
<S> <C> <C>
$110,000,000 Agreement with Goldman, Sachs &
Company, 5.850% dated 11/30/95,
to be repurchased at
$110,017,875 on 12/01/95,
collateralized by: $112,200,299
U.S. Treasury Strip due
11/15/04....................... $ 110,000,000
148,000,000 Agreement with HSBC Securities,
5.900% dated 11/30/95, to be
repurchased at $148,024,256 on
12/01/95, collateralized by:
$150,964,798 U.S. Treasury
Notes, 5.625% - 8.500% due
05/15/97 - 06/30/97............ 148,000,000
73,000,000 Agreement with Merrill Lynch &
Company, 5.875% dated 11/30/95
to be repurchased at
$73,011,913 on 12/01/95,
collateralized by: $74,462,029
U.S. Treasury Strips, Interest
Only, due 08/15/96 -
05/15/98....................... 73,000,000
148,000,000 Agreement with Morgan (J.P.)
Securities Inc., 5.890% dated
11/30/95, to be repurchased at
$148,024,214 on 12/01/95,
collateralized by: $11,185,184
U.S. Treasury Bonds, 7.250% -
12.000% due
11/15/09 - 08/15/20;
$139,774,986 U.S. Treasury
Notes, 4.750% - 8.000% due
05/15/96 - 11/15/24............ 148,000,000
5,000,000 Agreement with Morgan Stanley
Group Inc., 5.900% dated
11/30/95, to be repurchased at
$5,000,819 on 12/01/95,
collateralized by: $5,105,901
U.S. Treasury Bond, 10.375% due
11/15/09....................... 5,000,000
148,000,000 Agreement with Smith Barney &
Company, 5.890% dated 11/30/95,
to be repurchased at
$148,024,214 on 12/01/95,
collateralized by: $107,730,889
U.S. Treasury Bonds,
7.250% - 11.250% due 12/15/15 -
08/15/22; $11,076,534 U.S.
Treasury Notes, 5.250% - 6.875%
due 07/31/00 - 07/31/98;
$32,153,428 U.S. Treasury Bill
due 01/11/96................... 148,000,000
148,000,000 Agreement with UBS Securities,
Inc., 5.900% dated 11/30/95, to
be repurchased at $148,024,256
on 12/01/95, collateralized by:
$35,828,820 U.S. Treasury
Bonds, 6.875% - 7.625% due
11/15/24 - 08/15/24;
$115,135,108 U.S. Treasury
Notes, 5.875% - 8.000% due
02/15/01 - 08/15/04............ 148,000,000
--------------
TOTAL REPURCHASE
AGREEMENTS -- FIXED RATE
(Cost $2,464,986,000).......... 2,464,986,000
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 12
NATIONS FUND, INC.
Nations Treasury Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS -- TERM -- 7.2%
<S> <C> <C>
$ 75,000,000 Agreement with Merrill Lynch &
Company**, 6.000%+ dated
04/12/95, to be repurchased on
04/11/96. Interest receivable
as of November 30, 1995 was
$650,000, collateralized by:
$76,724,400 U.S. Treasury Bond,
8.750% due 05/15/11............ $ 75,000,000
100,000,000 Agreement with Morgan Stanley
Group Inc. 5.750%, with a final
maturity date of 12/01/95.
Interest receivable as of
November 30, 1995 was $223,611,
collateralized by: $40,179,011
U.S. Treasury Strips due
11/15/97 - 08/15/23;
$55,622,453 U.S. Treasury
Strips, Interest Only, due
02/15/96 - 05/15/12; $6,298,614
U.S. Treasury Strips, Principal
Only, due 02/15/98 - 11/15/99.. 100,000,000
40,000,000 Agreement with Morgan Stanley
Group Inc. 5.720%+, with a
final maturity date of
12/01/95. Interest receivable
as of November 30, 1995 was
$177,956, collateralized by:
$40,840,151 U.S. Treasury
Strips, Interest Only, due
02/15/03 - 08/15/04; $527,655
U.S. Treasury Note, 7.625% due
04/30/96....................... 40,000,000
--------------
TOTAL REPURCHASE
AGREEMENTS -- TERM
(Cost $215,000,000)............ 215,000,000
==============
<CAPTION>
REPURCHASE AGREEMENT -- WHEN ISSUED -- 2.0% (Cost $60,000,000)
<S> <C> <C>
60,000,000 Agreement with CS First Boston
Corporation**, 6.550%, with a
purchase settlement date of
12/29/95 and a maturity date of
01/02/96....................... 60,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,739,986,000).......... 2,739,986,000
==============
<CAPTION>
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
MONEY MARKET FUNDS -- 4.5%
<S> <C> <C>
68,831,000 AIM Treasury Fund................ $ 68,831,000
29,280,000 Dreyfus Treasury Cash Management
Fund........................... 29,280,000
35,953,000 Fidelity Institutional Cash
Portfolio...................... 35,953,000
--------------
TOTAL MONEY
MARKET FUNDS
(Cost $134,064,000)............ 134,064,000
==============
<CAPTION>
TOTAL INVESTMENTS
(Cost $3,736,543,784*).............. 125.5% 3,736,543,784
<S> <C> <C>
OTHER ASSETS AND
LIABILITIES (NET)................... (25.5) (758,351,697)
---- --------------
NET ASSETS............................ 100.0% $2,978,192,087
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Restricted security (Note 6).
+ Rate resets daily. The interest rate shown reflects the rate in effect at
November 30, 1995.
# Denotes securities subject to repurchase under reverse repurchase agreements
as of November 30, 1995 (Note 1).
## Securities segregated as collateral for reverse repurchase agreement.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 13
NATIONS FUND, INC.
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- 76.9%
<S> <C> <C>
AEROSPACE AND DEFENSE -- 1.0%
91,400 Raytheon Company................... $ 4,067,300
-----------
APPAREL AND TEXTILES -- 1.4%
77,100 Unifi Inc. ........................ 1,831,125
76,800 V.F. Corporation................... 3,993,600
-----------
5,824,725
-----------
AUTOMOTIVE ACCESSORIES -- 3.7%
139,800 Genuine Parts Company.............. 5,644,425
114,800 Goodyear Tire & Rubber Company..... 4,864,650
65,000 TRW Inc. .......................... 4,866,875
-----------
15,375,950
-----------
BEVERAGES -- 1.9%
69,100 Anheuser-Busch Companies, Inc. .... 4,577,875
58,500 PepsiCo Inc. ...................... 3,232,125
-----------
7,810,000
-----------
BUSINESS EQUIPMENT AND PERIPHERALS -- 1.9%
43,600 International Business Machines
Corporation...................... 4,212,850
85,200 Pitney Bowes Inc. ................. 3,812,700
-----------
8,025,550
-----------
CHEMICALS -- BASIC -- 2.1%
76,000 du Pont (E.I.) de Nemours
& Company........................ 5,054,000
78,100 PPG Industries, Inc. .............. 3,543,788
-----------
8,597,788
-----------
CHEMICALS -- SPECIALTY -- 1.4%
197,700 Lubrizol Corporation............... 5,659,162
-----------
DIVERSIFIED HEALTHCARE -- 1.1%
135,700 Mallinckrodt Group Inc. ........... 4,630,763
-----------
DRUGS -- 5.4%
170,800 Bausch & Lomb Inc. ................ 6,170,150
62,100 Becton Dickinson & Company......... 4,331,475
74,655 Bristol-Myers Squibb............... 5,991,064
125,700 Rhone-Poulenc Rorer................ 6,017,888
-----------
22,510,577
-----------
ELECTRIC UTILITIES --
NON-NUCLEAR -- 3.4%
177,400 Baltimore Gas & Electric Company... 4,723,275
124,300 CINergy Corporation................ 3,666,850
203,600 PECO Energy Company................ 5,904,400
-----------
14,294,525
-----------
ELECTRIC UTILITIES --
NUCLEAR -- 0.9%
117,900 Detroit Edison Company............. 3,846,487
-----------
ELECTRICAL EQUIPMENT -- 1.3%
47,300 General Electric Company........... 3,180,925
67,700 General Signal Corporation......... 2,183,325
-----------
5,364,250
-----------
ELECTRONIC COMPONENTS -- 2.1%
103,606 Avnet, Inc. ....................... 4,869,482
66,400 Motorola, Inc. .................... 4,067,000
-----------
8,936,482
-----------
FINANCE -- MISCELLANEOUS -- 0.4%
79,700 Avalon Properties Inc., REIT....... 1,554,150
-----------
FINANCIAL SERVICES -- 0.4%
39,126 Allstate Corporation............... 1,604,166
-----------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
<S> <C> <C>
FOOD -- PACKAGED -- 2.0%
164,400 Dean Foods Company................. $ 4,603,200
59,900 Hershey Foods Corporation.......... 3,698,825
-----------
8,302,025
-----------
HOUSEHOLD PRODUCTS -- 1.3%
72,900 Clorox Company..................... 5,522,175
-----------
INDUSTRIAL CONGLOMERATES -- 1.7%
21,900 ITT Corporation.................... 2,685,487
70,000 Minnesota Mining & Manufacturing
Company.......................... 4,585,000
-----------
7,270,487
-----------
INSURANCE -- LIFE AND
SPECIALTY -- 0.9%
81,800 Lincoln National Corporation....... 3,824,150
-----------
INSURANCE -- OTHER -- 1.1%
54,000 Marsh & McLennan Companies Inc. ... 4,684,500
-----------
LONG DISTANCE -- 2.7%
77,400 AT&T Company....................... 5,108,400
157,200 Sprint Corporation................. 6,288,000
-----------
11,396,400
-----------
MANUFACTURING -- 1.1%
146,800 Trinity Industries Inc. ........... 4,514,100
-----------
MEDIA -- 0.9%
57,700 Dun & Bradstreet Corporation....... 3,599,037
-----------
MONEY CENTER BANKS -- 1.6%
57,000 BankAmerica Corporation............ 3,626,625
51,500 Chemical Banking Corporation....... 3,090,000
-----------
6,716,625
-----------
OIL SERVICES AND EQUIPMENT -- 2.9%
161,700 Baker Hughes Inc. ................. 3,294,637
285,700 Dresser Industries, Inc. .......... 6,749,662
84,200 Union Pacific Resources Group...... 1,957,650
-----------
12,001,949
-----------
PAPER AND FOREST PRODUCTS -- 2.7%
52,100 Kimberly-Clark Corporation......... 4,005,187
54,700 Mead Corporation................... 3,124,738
100,680 Potlatch Corporation............... 4,064,955
-----------
11,194,880
-----------
PETROLEUM -- DOMESTIC -- 5.2%
152,200 Ashland Oil, Inc. ................. 5,307,975
128,800 Consolidated Natural Gas Company... 5,715,500
175,100 Equitable Resources Inc. .......... 5,384,325
133,100 Occidental Petroleum Corporation... 2,944,838
90,875 Sun Company, Inc. ................. 2,521,781
-----------
21,874,419
-----------
PETROLEUM -- INTERNATIONAL -- 5.1%
71,280 Exxon Corporation.................. 5,515,290
43,000 Mobil Corporation.................. 4,488,125
122,200 Murphy Oil Corporation............. 4,811,625
90,800 Texaco Inc. ....................... 6,719,200
-----------
21,534,240
-----------
PRODUCER GOODS -- MACHINERY -- 2.5%
135,400 Briggs & Stratton Corporation...... 5,636,025
232,800 Keystone International Inc. ....... 4,772,400
-----------
10,408,425
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 14
NATIONS FUND, INC.
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
<S> <C> <C>
REGIONAL BANKS -- 2.6%
104,400 Fleet Financial Group Inc. ........ $ 4,358,700
83,190 KeyCorp Inc. ...................... 3,067,631
67,300 Mellon Bank Corporation............ 3,600,550
-----------
11,026,881
-----------
RETAIL -- FOOD AND DRUG -- 0.7%
92,500 Supervalu Inc. .................... 2,983,125
-----------
RETAIL -- MAJOR -- 2.8%
103,900 May Department Stores Company...... 4,532,638
113,800 Penney (J.C) Inc. ................. 5,334,375
51,600 Sears, Roebuck & Company........... 2,031,750
-----------
11,898,763
-----------
RETAIL -- SPECIALTY -- 1.7%
103,000 Lowe's Companies Inc. ............. 3,244,500
125,900 Melville Corporation............... 3,918,638
-----------
7,163,138
-----------
SOFTWARE AND SERVICES -- 1.0%
29,800 Xerox Corporation.................. 4,086,325
-----------
TECHNOLOGY -- 1.2%
127,000 AMP Inc. .......................... 5,095,875
-----------
TELECOMMUNICATION SYSTEMS AND
SPECIALTY EQUIPMENT -- 1.5%
200,800 Communications Satellite
Corporation, Series 1............ 3,890,500
41,900 Harris Corporation................. 2,414,487
-----------
6,304,987
-----------
TELEPHONE -- BELL REGIONAL -- 2.0%
64,800 Ameritech Corporation.............. 3,564,000
61,600 BellSouth Corporation.............. 2,394,700
47,000 SBC Communications, Inc. .......... 2,538,000
-----------
8,496,700
-----------
TELEPHONE -- NON-BELL
REGIONAL -- 1.3%
130,000 GTE Corporation.................... 5,541,250
-----------
UTILITIES -- NATURAL GAS -- 2.0%
157,700 Brooklyn Union Gas Company......... 4,455,025
157,700 NICOR Inc. ........................ 4,001,638
-----------
8,456,663
-----------
TOTAL COMMON STOCKS
(Cost $286,817,706).............. 321,998,994
===========
<CAPTION>
PRINCIPAL
AMOUNT
- ---------------------------------------------------------------
CONVERTIBLE BONDS AND NOTES -- 5.2%
<S> <C> <C>
APPAREL AND TEXTILES -- 0.3%
$ 1,200,000 Unifi Inc., Sub. Note, Conv.,
6.000% 03/15/02.................. 1,216,500
-----------
DOMESTIC OIL -- 3.3%
5,900,000 Noble Affiliates, Conv. Note,
4.250% 11/01/03.................. 5,708,250
8,375,000 USX-Marathon Group, Sub. Deb.
Conv., 7.000% 06/15/17........... 7,998,125
-----------
13,706,375
-----------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
CONVERTIBLE BONDS AND NOTES -- (CONTINUED)
<S> <C> <C>
ELECTRICAL EQUIPMENT -- 1.6%
$ 6,575,000 General Signal Corporation, Sub.
Note Conv., 5.750% 06/01/02...... $ 6,813,344
-----------
TOTAL CONVERTIBLE BONDS
AND NOTES
(Cost $21,065,308)............... 21,736,219
===========
<CAPTION>
SHARES
- ---------------------------------------------------------------
FOREIGN STOCKS -- 5.8%
<S> <C> <C>
CHEMICALS -- BASIC -- 1.0%
88,800 Imperial Chemical Industry Plc,
ADR.............................. 4,151,400
-----------
INDUSTRIAL CONGLOMERATES -- 1.4%
384,000 Hanson Plc, ADR.................... 5,856,000
-----------
LONG DISTANCE -- 1.4%
60,500 BCE Inc., ADR...................... 2,026,750
69,100 British Telecommunications, ADR.... 3,999,162
-----------
6,025,912
-----------
OIL SERVICES AND EQUIPMENT -- 0.5%
33,300 Schlumberger Ltd., ADR............. 2,114,550
-----------
PETROLEUM -- 1.5%
48,700 Royal Dutch Petroleum Company,
ADR.............................. 6,251,863
-----------
TOTAL FOREIGN STOCKS
(Cost $22,927,714)............... 24,399,725
===========
TOTAL SECURITIES
(Cost $330,810,728).............. 368,134,938
===========
<CAPTION>
PRINCIPAL
AMOUNT
--------------------------------------------------------------
REPURCHASE AGREEMENT -- 11.6% (Cost $48,595,000)
<S> <C> <C>
$48,595,000 Agreement with CS First Boston
Corporation, 5.830% dated
11/30/95, to be repurchased at
$48,602,870 on 12/01/95,
collateralized by: $49,809,932
U.S. Treasury Bonds,
11.250% - 12.000% due 05/15/05 -
02/15/15......................... 48,595,000
===========
<Caption)
TOTAL INVESTMENTS
(Cost $379,405,728*).................. 99.5% 416,729,938
<S> <C> <C> <C>
OTHER ASSETS AND
LIABILITIES (NET)..................... 0.5 2,281,570
----- ------------
NET ASSETS.............................. 100.0% $419,011,508
===== ===========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
Conv. Convertible
Deb. Debenture
REIT Real Estate Investment Trust
Sub. Subordinated
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 15
NATIONS FUND, INC.
Nations Government Securities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.0%
<S> <C> <C> <C>
$ 589,691 CS First Boston Mortgage
Securities, Series
1989-5, Class A-1,
7.500%................. 12/25/09 $ 590,151
709,422 Resolution Corporation,
Series 1991-3, Class
A-2, 10.382%+.......... 08/25/21 740,681
------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $1,336,146)...... 1,330,832
===========
<CAPTION>
MORTGAGE-BACKED SECURITIES -- 80.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION
(FHLMC) CERTIFICATES -- 18.1%
<S> <C> <C> <C>
126,015 10.000%.................. 07/01/01 131,134
354,980 8.000%................... 04/01/06 366,403
547,651 8.000%................... 08/01/07 565,318
327,696 8.500%................... 03/01/08 340,571
2,970,237 8.000%................... 06/01/08 3,088,125
88,192 7.500%................... 08/01/08 89,240
307,878 8.500%................... 08/01/08 320,320
1,403,463 9.000%................... 02/01/09 1,477,383
264,887 8.250%................... 04/01/09 275,302
628,616 8.000%................... 05/01/09 653,565
264,746 7.500%................... 06/01/09 267,893
261,242 8.000%................... 06/01/09 269,981
255,392 8.000%................... 07/01/09 262,354
215,931 8.000%................... 09/01/09 223,180
8,672,827 8.500%................... 11/01/09 9,030,581
1,231,863 9.000%................... 12/01/09 1,304,222
991,168 8.000%................... 07/01/16 1,021,973
163,466 9.000%................... 12/01/16 171,795
191,402 8.500%................... 03/01/17 199,125
93,454 8.000%................... 05/01/17 96,580
1,678,917 8.500%................... 05/01/17 1,744,294
43,851 8.500%................... 06/01/17 45,535
360,076 9.500%................... 04/01/18 385,047
316,907 9.500%................... 06/01/20 339,090
19,714 9.500%................... 09/01/20 21,094
291,833 9.500%................... 06/01/21 312,521
287,276 REMIC,
6.000%................. 01/15/19 285,747
------------
23,288,373
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) CERTIFICATES -- 20.5%
750,989 8.500%................... 12/01/11 787,291
2,726,622 9.000%................... 04/01/16 2,886,784
109,761 8.500%................... 02/01/17 114,716
42,254 8.000%................... 06/01/17 43,716
92,834 8.000%................... 07/01/17 95,938
399,885 8.000%................... 06/01/20 415,557
83,207 8.500%................... 07/01/21 86,806
6,950,795 7.000%................... 08/01/25 6,946,416
4,989,411 6.500%................... 09/01/25 4,883,386
4,895,548 7.000%................... 09/01/25 4,892,464
5,060,828 7.500%................... 09/01/25 5,147,773
------------
26,300,847
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
CERTIFICATES -- 39.7%
37,306 12.750%.................. 12/15/97 39,299
101,137 11.750%.................. 09/15/00 106,447
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
<S> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
CERTIFICATES -- (CONTINUED)
$ 153,135 11.750%.................. 12/15/00 $ 161,174
212,269 8.500%................... 09/15/04 222,064
145,089 8.500%................... 02/15/05 151,808
43,068 8.500%................... 12/15/05 45,152
8,814 8.500%................... 01/15/06 9,241
192,427 8.500%................... 03/15/06 201,740
99,095 8.000%................... 09/15/06 102,070
219,152 8.000%................... 09/15/07 229,563
165,772 8.000%................... 11/15/07 173,646
354,223 8.000%................... 12/15/07 371,049
246,633 8.500%................... 06/15/08 259,615
1,054,126 8.500%................... 07/15/08 1,109,199
1,179,999 8.500%................... 08/15/08 1,241,747
112,424 9.000%................... 11/15/08 119,753
105,077 9.500%................... 06/15/09 113,690
210,326 9.500%................... 07/15/09 227,566
20,869 8.500%................... 09/15/09 21,984
132,877 9.500%................... 09/15/09 143,769
55,708 10.000%.................. 11/15/09 61,004
2,934,764 7.000%................... 07/15/10 2,982,454
50,507 10.000%.................. 01/15/16 55,509
281,895 9.500%................... 04/15/16 303,858
117,735 8.500%................... 06/15/16 123,952
379,234 9.000%................... 06/15/16 403,236
130,574 8.500%................... 07/15/16 137,581
310,266 9.000%................... 07/15/16 329,706
175,723 9.000%................... 08/15/16 186,677
92,150 9.000%................... 09/15/16 97,895
572,107 9.000%................... 10/15/16 607,772
247,640 9.000%................... 11/15/16 263,078
270,045 8.500%................... 01/15/17 284,535
92,734 9.000%................... 01/15/17 98,515
241,639 8.000%................... 02/15/17 251,962
74,658 8.500%................... 03/15/17 78,553
245,749 8.500%................... 04/15/17 258,935
60,527 8.500%................... 05/15/17 63,775
84,301 8.000%................... 06/15/17 87,876
151,729 8.000%................... 07/15/17 158,367
710,537 9.000%................... 07/15/17 754,278
56,406 10.000%.................. 02/15/18 62,031
93,075 9.000%................... 03/15/18 97,890
155,394 10.000%.................. 03/15/18 170,836
28,752 9.500%................... 07/15/18 30,944
142,953 8.500%................... 10/15/18 150,347
232,612 10.000%.................. 10/15/18 255,773
32,444 9.500%................... 12/15/18 34,917
112,337 10.000%.................. 03/15/19 122,903
45,525 10.000%.................. 07/15/19 49,807
164,915 10.000%.................. 10/15/19 174,810
91,701 10.000%.................. 11/15/19 100,326
159,680 10.000%.................. 12/15/19 175,604
261,611 9.000%................... 04/15/20 277,308
160,889 8.500%................... 05/15/20 169,329
149,277 10.000%.................. 06/15/20 163,318
125,056 9.000%................... 08/15/20 132,559
68,579 10.000%.................. 08/15/20 75,029
218,188 10.500%.................. 12/15/20 243,073
32,655 8.500%................... 03/15/21 34,318
261,929 8.000%................... 04/15/21 271,670
160,839 8.500%................... 07/15/21 167,924
240,974 9.500%................... 08/15/21 258,746
7,946 8.500%................... 09/15/21 8,351
174,340 8.000%................... 11/15/21 180,690
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 16
NATIONS FUND, INC.
Nations Government Securities Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT DATE (NOTE 1)
- -----------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
CERTIFICATES -- (CONTINUED)
<S> <C> <C> <C>
$ 470,818 8.500%................... 11/15/21 $ 491,563
606,404 8.500%................... 12/15/21 633,123
267,342 8.000%................... 03/15/22 277,078
4,741,243 8.000%................... 05/15/22 4,913,919
303,961 8.500%................... 05/15/22 317,354
285,366 8.000%................... 06/15/22 295,534
80,658 8.000%................... 07/15/22 83,532
3,257,405 8.500%................... 07/15/22 3,400,927
2,914,975 8.500%................... 08/15/22 3,043,409
1,646,718 7.000%................... 06/15/23 1,650,309
8,735,573 7.500%................... 12/15/23 8,915,700
903,138 7.500%................... 03/15/24 921,760
4,823,273 8.000%................... 11/15/24 4,990,544
4,668,793 9.000%................... 05/15/25 4,921,188
------------
50,904,537
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION II
(GNMA II) CERTIFICATES -- 1.8%
157,942 11.000%.................. 10/20/20 176,401
255,408 10.000%.................. 04/20/21 276,239
267,195 10.000%.................. 06/20/21 288,987
485,571 10.000%.................. 10/20/21 525,174
601,963 10.000%.................. 11/20/21 651,059
372,040 10.000%.................. 12/20/21 402,384
------------
2,320,244
------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $101,552,819).... 102,814,001
===========
<CAPTION>
U.S. GOVERNMENT AGENCY -- 1.3% (Cost $1,726,407)
<S> <C> <C> <C>
1,500,000 Federal Farm Credit
Systems, 9.450%........ 11/21/03 1,652,580
===========
<CAPTION>
U.S. TREASURY SECURITIES -- 13.6%
<S> <C> <C> <C>
U.S. Treasury Notes:
9,000,000 7.500%+................ 02/15/05 10,080,000
7,000,000 6.500%+................ 05/15/05 7,364,210
------------
TOTAL U.S. TREASURY
SECURITIES
(Cost $16,832,703)..... 17,444,210
===========
TOTAL SECURITIES
(Cost $121,448,075).... 123,241,623
===========
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.6%
(Cost $4,577,000)
<S> <C> <C> <C>
$ 4,577,000 Agreement with CS First
Boston Corporation,
5.830% dated 11/30/95,
to be repurchased at
$4,577,741 on 12/01/95,
collateralized by:
$4,691,435 U.S.
Treasury Bonds,
11.250% - 12.000% due
05/15/05 - 02/15/15.... $ 4,577,000
============
TOTAL INVESTMENTS
(Cost $126,025,075*)................. 99.6% 127,818,623
OTHER ASSETS AND
LIABILITIES (NET).................... 0.4 571,618
---- ------------
NET ASSETS............................. 100.0% $128,390,241
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Variable rate note. Interest rate shown reflects rate in effect at November
30, 1995.
ABBREVIATION:
REMIC Real Estate Mortgage Investment Conduit
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 17
NATIONS FUND, INC.
Nations International Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- 93.5%
<S> <C> <C>
ARGENTINA -- 0.7%
100,300 Banco de Galicia, ADS.............. $ 1,968,388
247,800 Compania Naviera Perez, ADR........ 2,416,050
39,000 Y.P.F. Sociedad Anonima, ADR....... 760,500
------------
5,144,938
------------
AUSTRALIA -- 1.6%
1,250,000 Australia & New Zealand Bank
Group............................ 5,568,375
340,000 CRA Ltd............................ 5,386,920
10,355 Qantas Airways, ADR**.............. 176,460
------------
11,131,755
------------
BRAZIL -- 0.8%
200,000 Aracruz Celulose S.A., ADR......... 1,800,000
80,000 Cemig Compania, New, ADR........... 1,730,400
50,000 Telebras, ADR...................... 2,400,000
------------
5,930,400
------------
DENMARK -- 1.0%
135,000 Tele Danmark, Series B............. 7,348,741
------------
FRANCE -- 6.1%
20,000 Alcatel Alsthom Cie Generale
d'Electric....................... 1,666,299
14,000 Carrefour.......................... 7,725,570
42,321 Compagnie de Saint-Gobain.......... 4,884,464
65,000 Credit Commercial de France........ 3,055,483
91,000 Credit Local de France............. 6,859,599
20,000 L'Oreal............................ 4,953,213
42,000 Louis Vuitton Moet Hennessey....... 7,978,039
111,350 TOTAL, "B" Shares Ord.............. 6,849,630
------------
43,972,297
------------
GERMANY -- 5.9%
37,000 Bayer AG........................... 9,625,372
78,000 Deutsche PFandbrief and Hypobk..... 2,965,779
25,000 Lufthansa.......................... 3,318,355
26,000 Mannesmann AG...................... 8,370,688
35,110 Merck.............................. 1,444,207
100,000 Schering AG........................ 6,792,257
235,000 Veba AG............................ 9,585,205
------------
42,101,863
------------
HONG KONG -- 6.0%
910,000 Cheung Kong Holdings............... 5,176,538
1,600,000 Dao Heng Bank Group................ 5,895,357
2,500,000 Hong Kong and China Gas............ 4,088,611
1,650,000 Hong Kong Land Holdings............ 2,937,000
2,550,000 Hong Kong Telecommunications....... 4,335,221
308,323 HSBC Holdings Plc.................. 4,544,186
375,000 Jardine Matheson Holdings.......... 2,268,750
610,000 Jardine Strategic Holdings......... 1,604,300
590,000 Sun Hung Kai Properties............ 4,748,284
625,000 Swire Pacific...................... 4,726,951
900,000 Wharf Holdings..................... 3,007,796
------------
43,332,994
------------
INDIA -- 0.2%
95,000 Reliance Industries, GDS+.......... 1,396,500
------------
INDONESIA -- 1.3%
835,500 Indofoods Sukses+.................. 3,658,857
73,000 PT Indonesian Satellite Sponsored
ADR.............................. 2,500,250
995,000 PT Inti Indorayon Utama, Alien
Shares........................... 1,056,656
1,000,000 Semen Cibinong, Alien Shares....... 2,364,791
------------
9,580,554
------------
ITALY -- 2.1%
440,000 Rinascente......................... $ 2,465,464
2,421,000 Telecom Italia..................... 3,293,002
6,000,000 Telecom Italia Mobile.............. 9,680,748
------------
15,439,214
------------
JAPAN -- 25.5%
126,000 Acom Company....................... 4,320,707
500,000 Asahi Bank Limited................. 5,797,101
260,000 Canon Sales Company................ 6,437,730
358,000 Marui Company...................... 6,683,370
990,000 Mitsubishi Heavy Industries........ 7,888,873
525,000 Mitsui Fudosan Company............. 6,499,632
251,500 Nippon Electric Glass.............. 4,670,450
915,000 Nippon Express Company Ltd......... 7,938,541
1,300,000 Nippon Sanso....................... 6,169,492
2,000,000 Nippon Steel....................... 6,877,917
765 Nippon Telephone & Telegraph
Corporation...................... 6,246,279
1,300,000 Nippon Yusen....................... 7,587,325
1,000,000 NTN Corporation.................... 6,612,626
700,000 OJI Paper.......................... 6,430,852
500,000 Onward Kashiyama Company........... 7,467,453
600,000 Ricoh.............................. 6,131,172
110,000 Rohm Company....................... 6,711,864
675,000 Shimizu Construction Company....... 6,897,568
407,000 Shizuoka Bank...................... 5,158,732
280,000 Sumitomo Trust & Bank.............. 3,851,634
140,000 TDK Corporation.................... 7,098,010
1,090,000 Teijin............................. 5,740,506
475,000 Tokyo Broadcasting Systems Inc..... 7,934,169
222,000 Tokyo Electric Power Company....... 5,758,585
950,000 Toshiba Corporation................ 6,842,054
215,000 Tostem Corporation................. 6,548,759
1,850,000 UBE Industries Ltd.+............... 7,016,458
500,000 Yamaichi Securities................ 3,163,842
1,010,000 Yasuda Fire & Marine Industries.... 6,668,828
------------
183,150,529
------------
KOREA -- 1.4%
20,650 Hyundai Engine and Construction.... 994,115
70,000 Korea Electric Power Corporation... 2,779,472
192,000 Korea First Bank+.................. 1,866,061
18,000 Samsung Electronics Ltd., GDS...... 1,071,000
85,000 Yukong Ltd......................... 2,978,005
------------
9,688,653
------------
MALAYSIA -- 3.4%
412,500 Genting Berhad..................... 3,560,800
1,850,000 Land & General Berhad.............. 3,682,499
166,666 Leader Universal Holdings.......... 443,435
450,000 Malaysian Banking Berhad........... 3,565,235
2,350,000 Malaysian Resources................ 2,982,657
960,000 Perusahaan Otomobil Nasional....... 3,235,317
500,000 Tenaga Nasional Berhad............. 1,872,290
800,000 United Engineers (Malaysia)
Berhad........................... 4,982,263
------------
24,324,496
------------
MEXICO -- 0.1%
44,000 Grupo Carso S.A. de CV, ADR........ 499,400
------------
NETHERLANDS -- 5.8%
631,000 Elsevier N.V....................... 8,611,808
122,000 Fortis Amev N.V.................... 8,151,918
36,000 Nutricia Verenigde Bedrijven....... 2,734,515
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 18
NATIONS FUND, INC.
Nations International Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
<S> <C> <C>
NETHERLANDS -- (CONTINUED)
170,000 Polygram........................... $ 10,235,904
19,000 Royal Dutch Petroleum.............. 2,444,081
110,000 Wolters Kluwer..................... 9,279,318
------------
41,457,544
------------
NORWAY -- 0.4%
75,000 Norsk Hydro A.S.................... 3,056,297
------------
SINGAPORE -- 3.0%
300,000 Development Bank of Singapore
(Alien).......................... 3,509,394
250,000 Keppel Corporation................. 2,056,009
330,000 Overseas Chinese Banking
Corporation (Alien).............. 3,953,917
300,000 Singapore Airlines (Alien)......... 2,807,515
252,000 Singapore Press Holdings (Alien)... 3,984,119
900,000 Straits Steamship.................. 2,845,799
1,160,000 United Overseas Land............... 2,236,937
------------
21,393,690
------------
SPAIN -- 2.8%
35,000 Banco Popular de Espanol........... 5,878,058
100,000 Continente Cent.................... 2,243,317
125,000 Empresa Nacional de Electridad S.A.
(Endesa)......................... 6,713,724
171,000 Repsol S.A......................... 5,389,923
------------
20,225,022
------------
SWEDEN -- 2.1%
40,000 Astra AB "B"....................... 1,470,061
400,000 Atlas Copco AB "B"................. 5,947,343
330,000 Ericsson Tele "B".................. 7,775,007
------------
15,192,411
------------
SWITZERLAND -- 5.4%
7,280 Brown Boveri & Cie AG.............. 8,364,255
2,800 Ciba Geigy AG...................... 2,497,362
4,700 Nestle S.A......................... 5,012,000
1,700 Roche Holdings AG.................. 12,847,660
33,000 Zurich Versicherungs............... 10,138,723
------------
38,860,000
------------
THAILAND -- 1.8%
130,000 Advanced Information Services
Public Company Ltd............... 2,066,773
120,000 Advanced Information Services
(Alien).......................... 1,907,790
225,000 Bangkok Bank Public Company Ltd.
(Alien).......................... 2,396,661
44,000 Siam Cement Public Company Ltd.
(Alien).......................... 2,116,057
485,000 Thai Farmers Bank Public Company
(Alien).......................... 4,317,965
------------
12,805,246
------------
UNITED KINGDOM -- 16.1%
1,900,000 Allied Colloids.................... 3,722,177
1,075,000 Allied Irish Banks................. 5,857,226
900,000 Argos.............................. 7,582,865
800,000 B.A.T. Industries.................. 6,826,033
550,000 Barclays Plc....................... 6,603,727
375,000 Bass Ord........................... 3,957,301
1,100,000 BPB Industries..................... 5,336,856
765,000 British Airport Authority.......... 5,748,790
850,000 British Petroleum.................. 6,693,262
1,125,000 British Telecommunications......... 6,499,845
1,125,000 BTR................................ 5,759,465
830,000 Cadbury Schweppes.................. $ 7,056,603
720,000 Guiness Plc........................ 5,091,057
1,000,000 Hanson Plc......................... 2,988,302
1,150,000 Inchcape........................... 4,259,383
100,000 Powergen Plc+...................... 333,649
350,000 Powergen Plc, Ord.................. 2,865,862
750,000 Reuters Holdings................... 7,076,652
1,805,074 Rolls Royce Plc.................... 4,917,547
1,000,000 Royal Insurance Holdings........... 5,953,647
650,000 Sedgwick Group..................... 1,198,765
600,000 Smithkline Beecham "A"............. 6,377,596
200,000 South Wales Electric............... 3,351,796
------------
116,058,406
------------
TOTAL COMMON STOCKS
(Cost $615,619,831).............. 672,090,950
===========
<CAPTION>
PRINCIPAL
AMOUNT
- ---------------------------------------------------------------
CONVERTIBLE BOND -- 1.2% (Cost $8,392,931)
<S> <C> <C>
$ 7,700,000 Mitsubishi Bank, Sub. Deb. Conv.,
3.000% 11/30/02.................. 8,460,375
===========
<CAPTION>
SHARES
- ---------------------------------------------------------------
PREFERRED STOCKS -- 0.5%
<S> <C> <C>
KOREA -- 0.5%
75,000 LG Electronics..................... 1,973,659
15,186 Samsung Electronics................ 1,747,355
------------
TOTAL PREFERRED STOCKS
(Cost $3,381,922)................ 3,721,014
============
COMMON STOCK WARRANT -- 0.0%# (Cost $0)
OTHER EUROPE -- 0.0%#
680,000 Central European Growth Fund,
expires 01/01/00+................ 78,145
-----------
MUTUAL FUNDS -- 0.8%
3,400,000 Central European Growth Fund....... 2,083,860
50,000 Chile Growth Fund.................. 1,900,000
600,000 Five Arrows Chile Investment Trust
Ltd. ............................ 1,674,000
-----------
TOTAL MUTUAL FUNDS
(Cost $6,354,519)................ 5,657,860
===========
TOTAL INVESTMENTS
(Cost $633,749,203*)................... 96.0% 690,008,344
OTHER ASSETS AND
LIABILITIES (NET)...................... 4.0 28,668,321
----- ------------
NET ASSETS............................... 100.0% $718,676,665
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Security exempt from registration under Rule 144a of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to
qualified institutional buyers.
+ Non-income producing security.
# Amount represents less than 0.01%.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
ADS American Depositary Share
Conv. Convertible
Deb. Debenture
GDS Global Depositary Share
Sub. Subordinated
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 19
NATIONS FUND, INC.
NATIONS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
AT NOVEMBER 30, 1995 SECTOR DIVERSIFICATION WAS AS FOLLOWS:
<TABLE>
<CAPTION>
% OF NET VALUE
SECTOR DIVERSIFICATION ASSETS (NOTE 1)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
Banking...................................................................... 11.1% $ 79,761,245
Telecommunications........................................................... 6.6 47,679,093
Oil.......................................................................... 5.1 36,434,449
Pharmaceuticals.............................................................. 4.4 31,429,142
Chemicals.................................................................... 3.7 26,533,498
Financial Services........................................................... 3.2 22,673,671
Transportation Equipment..................................................... 3.0 21,274,656
Real Estate.................................................................. 2.9 21,148,804
Insurance.................................................................... 2.9 20,774,393
Publishing................................................................... 2.8 19,766,309
Utilities.................................................................... 2.0 14,337,810
Property..................................................................... 1.9 13,942,773
Technology................................................................... 1.9 13,940,064
Leisure and Entertainment.................................................... 1.9 13,796,704
Food Manufacturer............................................................ 1.9 13,449,974
Engineering - Construction................................................... 1.9 13,396,277
Textiles..................................................................... 1.8 13,207,959
Electric, Gas, Sanitary Services............................................. 1.8 12,713,059
Construction................................................................. 1.7 11,885,615
Consumer Services............................................................ 1.5 10,942,753
Retail....................................................................... 1.4 10,048,329
Food Retailer................................................................ 1.4 9,968,886
Paper........................................................................ 1.4 9,961,252
Communication................................................................ 1.3 9,600,468
Electrical Machinery and Equipment........................................... 1.3 9,435,255
Food......................................................................... 1.3 9,048,358
Stone, Clay, Glass, Concrete Products........................................ 1.2 8,973,939
Electronics - Semiconductor.................................................. 1.2 8,685,523
Mining....................................................................... 1.2 8,369,577
Wine and Spirits............................................................. 1.1 7,978,039
Basic Industries............................................................. 1.1 7,888,873
Holding Company.............................................................. 1.0 7,360,752
Media........................................................................ 1.0 7,076,652
Building Construction........................................................ 1.0 6,897,569
Iron Steel................................................................... 1.0 6,877,917
Tobacco...................................................................... 0.9 6,826,033
Metal Fabricate - Hardware................................................... 0.9 6,612,626
Consumer Goods............................................................... 0.9 6,437,730
Airlines..................................................................... 0.9 6,302,330
Office Supplies.............................................................. 0.8 6,131,172
Industrial Gas............................................................... 0.8 5,947,343
Other Industries............................................................. 0.8 5,759,465
Food-Processing.............................................................. 0.7 5,012,000
Personal Services............................................................ 0.7 4,953,214
Engineering.................................................................. 0.7 4,917,547
Television................................................................... 0.6 4,670,450
Computer Industry............................................................ 0.6 3,974,563
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 20
NATIONS FUND, INC.
NATIONS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
% OF NET VALUE
SECTOR DIVERSIFICATION (CONTINUED) ASSETS (NOTE 1)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
Electrical Equipment......................................................... 0.5% $ 3,556,556
Automotive................................................................... 0.5 3,235,317
Other Investment Offices..................................................... 0.4 3,007,796
Petroleum.................................................................... 0.4 2,978,006
Water Transportation......................................................... 0.2 2,056,009
Industrial................................................................... 0.2 1,396,500
Forest Products and Paper.................................................... 0.1 1,056,656
----- -----------
TOTAL COMMON STOCKS.......................................................... 93.5 672,090,950
CONVERTIBLE BOND............................................................. 1.2 8,460,375
PREFERRED STOCKS............................................................. 0.5 3,721,014
COMMON STOCK WARRANT......................................................... 0.0# 78,145
MUTUAL FUNDS................................................................. 0.8 5,657,860
----- -----------
TOTAL INVESTMENTS............................................................ 96.0 690,008,344
OTHER ASSETS AND LIABILITIES (NET)........................................... 4.0 28,668,321
----- ------------
NET ASSETS................................................................... 100.0% $718,676,665
===== ============
</TABLE>
- ---------------
# Amount represents less than 0.1%.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 21
NATIONS FUND, INC.
NATIONS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS NOVEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
CONTRACT TO BUY NET UNREALIZED
-------------------------------------------------- APPRECIATION/
LOCAL VALUE IN IN EXCHANGE (DEPRECIATION)
MATURITY DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACT
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/04/95 3,965,300 NLG............... $ 2,448,774 $ 2,463,684 $(14,910)
12/04/95 28,302,251 THB............... 1,124,822 1,125,786 (964)
12/05/95 1,088,198,029 IDR............... 476,341 476,444 (103)
12/06/95 12,933,354 SGD............... 2,080,018 2,077,446 2,572
--------------
$(13,405)
--------------
</TABLE>
<TABLE>
<CAPTION>
CONTRACT TO SELL
-------------------------------------------------- NET UNREALIZED
LOCAL VALUE IN IN EXCHANGE APPRECIATION
MATURITY DATE CURRENCY U.S. $ FOR U.S. $ OF CONTRACT
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
01/12/96 3,432,0750 KRW............... $ 44,535 $ 44,677 $ 142
02/28/96 6,600,000 CHF............... 5,668,399 5,761,550 93,151
02/28/96 108,000,000 FRF............... 21,620,756 21,921,367 300,611
02/28/96 3,200,000,000 JPY............... 31,871,716 32,082,774 211,058
02/28/96 3,150,000,000 JPY............... 31,373,720 31,574,199 200,479
02/28/96 3,150,000,000 JPY............... 31,373,721 31,563,126 189,405
------------
$994,846
------------
Net Unrealized Appreciation of Forward Foreign Exchange Contracts........ $981,441
============
- ---------------------------------------------------
KEY TO CURRENCY ABBREVIATIONS
CHF Swiss Franc
FRF French Franc
IDR Indonesian Rupiah
JPY Japanese Yen
KRW Korean Won
NLG Netherlands Guilder
SGD Singapore Dollar
THB Thailand Baht
- ---------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 22
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS NATIONS EQUITY GOVERNMENT INTERNATIONAL
PRIME TREASURY INCOME SECURITIES EQUITY
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------
ASSETS:
Investments, at value
See accompanying schedules:
Securities........................................... $4,178,116,348 $ 996,557,784 $368,134,938 $123,241,623 $690,008,344
Repurchase agreements................................ -- 2,739,986,000 48,595,000 4,577,000 --
-------------- -------------- ------------ ------------ ------------
Total investments.................................. 4,178,116,348 3,736,543,784 416,729,938 127,818,623 690,008,344
Cash................................................... 824,695 138 76 889 33,898,911
Foreign currency, at value (Cost $206)................. -- -- -- -- 208
Net unrealized appreciation of forward foreign exchange
contracts (Note 1)
See accompanying schedule............................ -- -- -- -- 981,441
Dividends receivable................................... 442,826 370,929 1,295,305 696 1,103,197
Interest receivable.................................... 15,410,423 3,661,980 503,321 975,579 150,338
Receivable for Fund shares sold........................ 14,339,396 362,587 661,636 518,889 6,888,443
Receivable for investment securities sold.............. -- -- 513,035 50,787 --
Receivable for withholding tax on dividends............ -- -- -- -- 582,519
Unamortized organization costs (Note 7)................ -- -- 6,670 -- 25,115
Prepaid expenses and other assets...................... 176,237 125,981 610 15 2,712
-------------- -------------- ------------ ------------ ------------
Total Assets......................................... 4,209,309,925 3,741,065,399 419,710,591 129,365,478 733,641,228
============== ============== ============ ============ ============
LIABILITIES:
Payable for reverse repurchase agreements (Note 1)..... -- 648,986,000 -- -- --
Payable for Fund shares redeemed....................... 8,738,811 551,323 283,524 488,428 1,004,523
Payable for investment securities purchased (Notes 1
and 4)............................................... -- 99,919,111 -- -- 13,167,864
Investment advisory fee payable (Note 2)............... 510,156 423,793 227,556 13,946 513,696
Administration fee payable (Note 2).................... 168,707 120,432 33,826 11,074 57,076
Shareholder servicing and distribution fees payable
(Note 3)............................................. 363,271 63,425 70,566 33,834 24,594
Transfer agent fees (Note 2)........................... 122,998 89,155 38,835 15,808 64,232
Custodian fees payable (Note 2)........................ 47,204 39,252 5,632 1,776 41,367
Dividends payable...................................... 13,267,977 12,571,117 -- 391,324 --
Accrued Directors' fees and expenses (Note 2).......... 19,603 14,271 1,922 506 3,109
Accrued expenses and other payables.................... 291,188 95,433 37,222 18,541 88,102
-------------- -------------- ------------ ------------ ------------
Total Liabilities.................................... 23,529,915 762,873,312 699,083 975,237 14,964,563
-------------- -------------- ------------ ------------ ------------
NET ASSETS............................................. $4,185,780,010 $2,978,192,087 $419,011,508 $128,390,241 $718,676,665
============== ============== ============ ============ ============
Investments, at cost (Note 1).......................... $4,178,116,348 $3,736,543,784 $379,405,728 $126,025,075 $633,749,203
============== ============== ============ ============ ============
NET ASSETS CONSIST OF:
Undistributed net investment income/(distributions in
excess of net investment income)..................... $ -- $ 1,109 $ 2,259,681 $ (364,798) $(14,973,269)
Accumulated net realized gain/(loss) on investments
sold, forward foreign exchange contracts, foreign
currency and net other assets and liabilities........ (443,399) 2,535 11,311,518 (6,622,918) 17,081,518
Net unrealized appreciation/(depreciation) of
investments, forward foreign exchange contracts,
foreign currency and net other assets................ -- -- 37,324,210 1,793,548 57,225,505
Par value.............................................. 4,186,211 2,978,144 33,192 12,891 57,451
Paid-in capital in excess of par value................. 4,182,037,198 2,975,210,299 368,082,907 133,571,518 659,285,460
-------------- -------------- ------------ ------------ ------------
NET ASSETS............................................. $4,185,780,010 $2,978,192,087 $419,011,508 $128,390,241 $718,676,665
============== ============== ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 23
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS NATIONS EQUITY GOVERNMENT INTERNATIONAL
PRIME TREASURY INCOME SECURITIES EQUITY
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------
NET ASSETS:
Trust A Shares........................................... $2,751,290,192 $2,725,471,134 $275,586,074 $58,266,611 $674,178,922
------------ ------------ ----------- ---------- -----------
Trust B Shares........................................... $ 101,221,368 $ 51,122,934 N/A N/A N/A
------------ ------------ ----------- ---------- -----------
Investor A Shares........................................ $ 967,618,786 $ 144,400,117 $ 40,370,672 $10,291,230 $ 5,874,560
------------ ------------ ----------- ---------- -----------
Investor B Shares........................................ $ 297,779,548 $ 48,953,920 N/A N/A N/A
------------ ------------ ----------- ---------- -----------
Investor C Shares........................................ $ 67,830,298 $ 8,241,900 $ 4,600,515 $ 2,823,718 $ 588,582
------------ ------------ ----------- ---------- -----------
Investor D Shares........................................ $ 39,818 $ 2,082 N/A N/A N/A
------------ ------------ ----------- ---------- -----------
Investor N Shares........................................ N/A N/A $ 98,454,247 $57,008,682 $ 38,034,601
------------ ------------ ----------- ---------- -----------
SHARES OUTSTANDING:
Trust A Shares........................................... 2,751,573,457 2,725,427,520 21,805,902 5,850,336 53,830,916
------------ ------------ ----------- ---------- -----------
Trust B Shares........................................... 101,231,790 51,122,116 N/A N/A N/A
------------ ------------ ----------- ---------- -----------
Investor A Shares........................................ 967,718,409 144,397,803 3,202,363 1,033,273 473,288
------------ ------------ ----------- ---------- -----------
Investor B Shares........................................ 297,810,207 48,953,137 N/A N/A N/A
------------ ------------ ----------- ---------- -----------
Investor C Shares........................................ 67,837,281 8,241,768 363,220 283,505 48,491
------------ ------------ ----------- ---------- -----------
Investor D Shares........................................ 39,822 2,082 N/A N/A N/A
------------ ------------ ----------- ---------- -----------
Investor N Shares........................................ N/A N/A 7,820,504 5,724,027 3,098,658
------------ ------------ ----------- ---------- -----------
TRUST A SHARES:
Net asset value, offering price and redemption price per
share.................................................. $1.00 $1.00 $12.64 $9.96 $12.52
---- ---- ----- ---- -----
TRUST B SHARES:
Net asset value, offering price and redemption price per
share.................................................. $1.00 $1.00 N/A N/A N/A
---- ----
INVESTOR A SHARES:
Net asset value and redemption price per share........... $1.00 $1.00 $12.61 $9.96 $12.41
---- ---- ----- ---- -----
Maximum sales charge..................................... N/A N/A 5.75% 4.75% 5.75%
Maximum offering price per share......................... N/A N/A $13.38 $10.46 $13.17
----- ----- -----
INVESTOR B SHARES:
Net asset value, offering price and redemption price per
share.................................................. $1.00 $1.00 N/A N/A N/A
---- ----
INVESTOR C SHARES:
Net asset value, offering price and redemption price per
share.................................................. $1.00 $1.00 $12.67* $9.96* $12.14*
---- ---- ----- ---- -----
INVESTOR D SHARES:
Net asset value, offering price and redemption price per
share.................................................. $1.00 $1.00 N/A N/A N/A
---- ----
INVESTOR N SHARES*:
Net asset value and offering price per share............. N/A N/A $12.59 $9.96 $12.27
----- ---- -----
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 24
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS NATIONS EQUITY GOVERNMENT INTERNATIONAL
PRIME TREASURY INCOME SECURITIES EQUITY
FUND FUND FUND FUND FUND
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $124,166,057 $90,541,509 $ 2,832,604 $3,940,222 $ 775,303
Dividends (Net of foreign withholding taxes of $102,078
for the Nations Equity Income Fund and $792,622 for the
Nations International Equity Fund)...................... 2,647,085 2,646,323 5,493,963 697 5,739,568
Fee Income (Note 4)....................................... -- -- -- 26,381 --
------------ ----------- ----------- ---------- -----------
Total investment income............................... 126,813,142 93,187,832 8,326,567 3,967,300 6,514,871
------------ ----------- ----------- ---------- -----------
EXPENSES:
Investment advisory fee (Note 2).......................... 4,215,079 3,161,857 1,378,209 350,354 3,197,062
Administration fee (Note 2)............................... 2,089,683 1,567,535 204,686 54,634 328,428
Custodian fees (Note 2)................................... 281,803 240,902 33,947 11,327 253,881
Transfer agent fees (Note 2).............................. 450,404 325,984 138,854 35,360 222,505
Directors' fees and expenses (Note 2)..................... 26,602 19,468 2,578 699 4,594
Amortization of organization costs (Note 7)............... -- -- 7,634 1,010 10,316
Other..................................................... 680,695 382,838 101,748 59,434 55,609
------------ ----------- ----------- ---------- -----------
Subtotal.............................................. 7,744,266 5,698,584 1,867,656 512,818 4,072,395
Shareholder servicing and distribution fees (Note 3):
Trust B Shares.......................................... 145,526 74,044 -- -- --
Investor A Shares....................................... 1,452,211 213,840 47,547 13,430 7,047
Investor B/C Shares..................................... 316,641 77,997 21,868 10,729 2,706
Investor C/N Shares..................................... 80,895 9,539 323,489 182,966 130,996
Investor D Shares....................................... 62 3 -- -- --
Fees waived by investment adviser and/or administrator
(Note 2)................................................ (1,421,502) (987,696) -- (77,182 ) (300,813)
------------ ----------- ----------- ---------- -----------
Total expenses........................................ 8,318,099 5,086,311 2,260,560 642,761 3,912,331
------------ ----------- ----------- ---------- -----------
NET INVESTMENT INCOME..................................... 118,495,043 88,101,521 6,066,007 3,324,539 2,602,540
------------ ----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 4):
Realized gain/(loss) from:
Security transactions................................... (15,847) 3,576 8,781,679 466,231 4,355,978
Forward foreign exchange contracts...................... -- -- (138) -- 16,319,788
Foreign currency transactions........................... -- -- 649 -- (297,613)
------------ ----------- ----------- ---------- -----------
Net realized gain/(loss) on investments during the
period.................................................. (15,847) 3,576 8,782,190 466,231 20,378,153
Change in unrealized appreciation/(depreciation) of:
Securities.............................................. -- -- 19,433,136 917,075 11,757,867
Forward foreign exchange contracts...................... -- -- -- -- 6,073,320
Foreign currency........................................ -- -- -- -- (117,513)
------------ ----------- ----------- ---------- -----------
Net unrealized appreciation of investments during the
period.................................................. -- -- 19,433,136 917,075 17,713,674
------------ ----------- ----------- ---------- -----------
Net realized and unrealized gain/(loss) on investments.... (15,847) 3,576 28,215,326 1,383,306 38,091,827
------------ ----------- ----------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS......................................... $118,479,196 $88,105,097 $34,281,333 $4,707,845 $40,694,367
============ =========== =========== ========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 25
NATIONS FUND, INC.
Nations Treasury Fund
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
Cash flows from operating and investing activities:
Investment income received.......................................... $ 70,463,297
Payment of operating expenses....................................... (4,914,746)
Net purchases of short-term investments............................. 171,143,215
---------------
Cash provided by operating and investing activities................... $236,691,766
Cash flows from financing activities:
Proceeds from shares sold........................................... 5,248,207,395
Payments on shares redeemed......................................... (5,394,647,845)
Cash used from reverse repurchase agreement......................... (6,959,000)
Distributions paid*................................................. (85,146,014)
---------------
Cash used by financing activities..................................... (238,545,464)
------------
Decrease in cash...................................................... (1,853,698)
Cash at beginning of period........................................... 1,853,836
------------
Cash at end of period................................................. $ 138
============
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH
PROVIDED BY OPERATING ACTIVITIES:
Net increase in net assets resulting from operations.................. $ 88,105,097
Decrease in investments............................................. $ 48,751,452
Increase in interest and dividends receivable....................... (255,459)
Decrease in other assets............................................ 22,712
Increase in payable for investments purchased....................... 99,919,111
Increase in accrued expenses........................................ 148,853
---------------
Cash provided by operating activities................................. $236,691,766
============
</TABLE>
- ---------------
* Noncash activities include reinvestment of dividends of $4,768,825.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 26
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS NATIONS EQUITY GOVERNMENT INTERNATIONAL
PRIME TREASURY INCOME SECURITIES EQUITY
FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net investment income.......................... $ 118,495,043 $ 88,101,521 $ 6,066,007 $ 3,324,539 $ 2,602,540
Net realized gain/(loss) on investments........ (15,847) 3,576 8,782,190 466,231 20,378,153
Change in unrealized appreciation of
investments.................................. -- -- 19,433,136 917,075 17,713,674
-------------- -------------- ------------ ------------ ------------
Net increase in net assets resulting from
operations................................... 118,479,196 88,105,097 34,281,333 4,707,845 40,694,367
Distributions to shareholders from net
investment income:
Trust A Shares............................... (84,035,207) (81,342,428) (4,643,318) (1,280,907) --
Trust B Shares............................... (3,212,697) (1,596,526) -- -- --
Investor A Shares............................ (22,465,943) (3,266,475) (568,693) (327,424) --
Investor B Shares............................ (6,987,501) (1,689,930) -- -- --
Investor C Shares............................ (1,792,277) (206,111) (49,507) (81,486) --
Investor D Shares............................ (1,418) (51) -- -- --
Investor N Shares............................ -- -- (1,087,333) (1,634,711) --
Net increase/(decrease) in net assets from
Fund share transactions:
Trust A Shares............................... (121,823,194) (171,399,261) (26,640,192) 17,684,712 62,900,264
Trust B Shares............................... (24,901,602) (5,692,224) -- -- --
Investor A Shares............................ 269,287,746 36,924,039 2,249,993 (740,974) 677,990
Investor B Shares............................ 80,814,114 (3,609,885) -- -- --
Investor C Shares............................ 14,380,395 1,868,691 22,587 (151,155) 63,645
Investor D Shares............................ 37,790 51 -- -- --
Investor N Shares............................ -- -- 17,178,505 277,185 4,656,766
-------------- -------------- ------------ ------------ ------------
Net increase/(decrease) in net assets.......... 217,779,402 (141,905,013) 20,743,375 18,453,085 108,993,032
NET ASSETS:
Beginning of period............................ 3,968,000,608 3,120,097,100 398,268,133 109,937,156 609,683,633
-------------- -------------- ------------ ------------ ------------
End of period.................................. $4,185,780,010 $2,978,192,087 $419,011,508 $128,390,241 $718,676,665
============== ============== ============ ============ ============
Undistributed net investment
income/(distributions in excess of net
investment income) at end of period.......... $ -- $ 1,109 $ 2,259,681 $ (364,798) $(14,973,269)
============== ============== ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 27
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS
NATIONS NATIONS EQUITY GOVERNMENT INTERNATIONAL
PRIME TREASURY INCOME SECURITIES EQUITY
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net investment income....................... $ 190,185,080 $ 147,953,000 $ 13,092,025 $ 7,075,024 $ 6,125,402
Net realized gain/(loss) on investments..... 1,780 32 14,003,911 (5,534,882) (18,973,898)
Change in unrealized appreciation on
investments............................... -- -- 23,887,774 5,468,488 6,301,646
-------------- -------------- ------------ ------------ -------------
Net increase/(decrease) in net assets
resulting from operations................. 190,186,860 147,953,032 50,983,710 7,008,630 (6,546,850)
Distributions to shareholders from net
investment income:
Trust A Shares............................ (148,958,819) (139,757,883) (9,856,745) (2,523,573) (931,481)
Trust B Shares............................ (5,136,504) (2,557,073) -- -- --
Investor A Shares......................... (29,631,302) (4,431,540) (1,156,262) (695,474) (5,028)
Investor B Shares......................... (5,028,843) (1,089,257) -- -- --
Investor C Shares......................... (1,429,580) (116,108) (112,439) (221,446) --
Investor D Shares......................... (32) (30) -- -- --
Investor N Shares......................... -- -- (1,729,944) (3,167,986) (12,349)
Distributions to shareholders from net
realized gain on investments:
Trust A Shares............................ -- (1,048) (17,409,491) -- (5,495,934)
Trust B Shares............................ -- (19) -- -- --
Investor A Shares......................... -- (33) (2,096,836) -- (49,133)
Investor B Shares......................... -- (8) -- -- --
Investor C Shares......................... -- (1) (258,136) -- (4,022)
Investor D Shares......................... -- -- -- -- --
Investor N Shares......................... -- -- (3,677,792) -- (291,841)
Distributions in excess of net realized gain
on investments:
Trust A Shares............................ -- -- -- -- (4,311,458)
Trust B Shares............................ -- -- -- -- --
Investor A Shares......................... -- -- -- -- (38,735)
Investor B Shares......................... -- -- -- -- --
Investor C Shares......................... -- -- -- -- (3,171)
Investor D Shares......................... -- -- -- -- --
Investor N Shares......................... -- -- -- -- (229,798)
Distributions to shareholders from capital:
Trust A Shares............................ -- -- -- (167,558) --
Trust B Shares............................ -- -- -- -- --
Investor A Shares......................... -- -- -- (47,777) --
Investor B Shares......................... -- -- -- -- --
Investor C Shares......................... -- -- -- (16,490) --
Investor D Shares......................... -- -- -- -- --
Investor N Shares......................... -- -- -- (234,720) --
Net increase/(decrease) in net assets from
Fund share transactions:
Trust A Shares............................ (10,718,867) 216,878,016 46,987,917 (4,498,777) 187,819,405
Trust B Shares............................ 126,133,392 56,814,340 -- -- --
Investor A Shares......................... 186,535,070 33,280,029 504,212 (3,076,060) 1,874,077
Investor B Shares......................... 216,994,080 52,561,009 -- -- --
Investor C Shares......................... 51,975,852 6,181,912 (82,344) (2,265,980) 169,852
Investor D Shares......................... 2,032 2,031 -- --
Investor N Shares......................... -- -- 26,477,537 (313,210) 15,273,894
-------------- -------------- ------------ ------------ -------------
Net increase/(decrease) in net assets....... 570,923,339 365,717,369 88,573,387 (10,220,421) 187,217,428
NET ASSETS:
Beginning of year........................... 3,397,077,269 2,754,379,731 309,694,746 120,157,577 422,466,205
-------------- -------------- ------------ ------------ -------------
End of year................................. $3,968,000,608 $3,120,097,100 $398,268,133 $109,937,156 $609,683,633
============== ============== ============ ============ =============
Undistributed net investment
income/(distributions in excess of net
investment income) at end of year......... $ -- $ 1,109 $ 2,542,525 $ (364,809) $(17,575,809)
============== ============== ============ ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 28
[THIS PAGE INTENTIONALLY LEFT BLANK]
26
<PAGE> 29
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
Since Nations Prime Fund and Nations Treasury Fund have sold and redeemed shares
only at a constant net asset value of $1.00 per share, the number of shares
represented by such sales, reinvestments and redemptions is the same as the
amounts shown below for such transactions.
<TABLE>
<CAPTION>
NATIONS PRIME FUND NATIONS TREASURY FUND
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1995 YEAR ENDED NOVEMBER 30, 1995 YEAR ENDED
(UNAUDITED) MAY 31, 1995 (UNAUDITED) MAY 31, 1995
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold...................................... $ 1,535,486,736 $4,179,031,181 $ 3,463,888,999 $8,214,697,040
Issued as reinvestment of dividends....... 177,434 -- 10,887 15,712
Redeemed.................................. (1,657,487,364) (4,189,750,048) (3,635,299,147) (7,997,834,736)
--------------- -------------- -------------- --------------
Net increase/(decrease)................... $ (121,823,194) $ (10,718,867) $ (171,399,261) $ 216,878,016
=============== ============== ================ ==============
<CAPTION>
PERIOD ENDED PERIOD ENDED
MAY 31, 1995*+ MAY 31, 1995**+
-------------- ---------------
<S> <C> <C> <C> <C>
TRUST B SHARES:
Sold...................................... $ 193,098,230 $ 472,671,842 $ 123,293,541 $ 274,967,675
Issued as reinvestment of dividends....... -- -- -- --
Redeemed.................................. (217,999,832) (346,538,450) (128,985,765) (218,153,335)
--------------- -------------- -------------- --------------
Net increase/(decrease)................... $ (24,901,602) $ 126,133,392 $ (5,692,224) $ 56,814,340
=============== ============== ================ ==============
<CAPTION>
YEAR ENDED YEAR ENDED
MAY 31, 1995 MAY 31, 1995
---------------- ---------------
<S> <C> <C> <C> <C>
INVESTOR A SHARES:
Sold...................................... $ 1,915,444,020 $ 4,055,956,632 $ 191,836,851 $ 1,790,095,545
Issued as reinvestment of dividends....... 21,521,010 27,595,453 3,190,741 4,030,399
Redeemed.................................. (1,667,677,284) (3,897,017,015) (158,103,553) (1,760,845,915)
--------------- --------------- --------------- ---------------
Net increase.............................. $ 269,287,746 $ 186,535,070 $ 36,924,039 $ 33,280,029
=============== ============== ================ ==============
INVESTOR B SHARES:
Sold...................................... $ 958,864,109 $ 1,233,942,079 $ 1,458,860,884 $ 1,115,379,304
Issued as reinvestment of dividends....... 6,303,083 4,499,801 1,361,946 923,681
Redeemed.................................. (884,353,078) (1,021,447,800) (1,463,832,715) (1,063,741,976)
--------------- --------------- --------------- ---------------
Net increase/(decrease)................... $ 80,814,114 $ 216,994,080 $ (3,609,885) $ 52,561,009
=============== ============== ================ ==============
INVESTOR C SHARES:
Sold...................................... $ 112,614,183 $ 145,963,264 $ 9,646,818 $ 10,389,850
Issued as reinvestment of dividends....... 1,739,675 1,371,960 205,200 114,263
Redeemed.................................. (99,973,463) (95,359,372) (7,983,327) (4,322,201)
--------------- --------------- --------------- ---------------
Net increase.............................. $ 14,380,395 $ 51,975,852 $ 1,868,691 $ 6,181,912
=============== ============== ================ ==============
<CAPTION>
PERIOD ENDED PERIOD ENDED
MAY 31, 1995*+ MAY 31, 1995**+
--------------- ---------------
<S> <C> <C> <C> <C>
INVESTOR D SHARES:
Sold...................................... $ 92,585 $ 2,000 $ -- $ 2,000
Issued as reinvestment of dividends....... 1,417 32 51 31
Redeemed.................................. (56,212) -- -- --
--------------- --------------- --------------- ---------------
Net increase.............................. $ 37,790 $ 2,032 $ 51 $ 2,031
=============== ============== ================ ==============
</TABLE>
- ---------------
* The Nations Prime Fund's Trust B and Investor D Shares commenced
operations on June 16, 1994 and February 9, 1995, respectively.
** The Nations Treasury Fund's Trust B and Investor D Shares commenced
operations on June 16, 1994 and February 9, 1995, respectively.
+ As of November 30, 1995, the Nations Prime Fund and Nations Treasury Fund
had each issued 10 Trust B Shares, 2,010 Investor B Shares and 2,000
Investor D Shares to Stephens, Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS EQUITY INCOME FUND
SIX MONTHS ENDED
NOVEMBER 30, 1995 YEAR ENDED
(UNAUDITED) MAY 31, 1995
------------------------------ ------------------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRUST A SHARES:
Sold.................................................... 2,003,730 $ 24,345,465 10,384,693 $117,673,123
Issued in exchange for Trust A Shares of the Nations
Mortgage-Backed Securities Fund....................... -- -- -- --
Issued as reinvestment of dividends..................... 132,357 1,593,372 1,562,311 16,446,517
Redeemed................................................ (4,307,489) (52,579,029) (7,712,497) (87,131,723)
---------- ------------ ---------- ------------
Net increase/(decrease)................................. (2,171,402) $(26,640,192) 4,234,507 $ 46,987,917
========== ============ ========== ============
INVESTOR A SHARES:
Sold.................................................... 392,405 $ 4,775,987 518,086 $ 5,797,756
Issued as reinvestment of dividends..................... 45,302 543,677 294,458 3,116,118
Redeemed................................................ (252,435) (3,069,671) (748,735) (8,409,662)
---------- ------------ ---------- ------------
Net increase/(decrease)................................. 185,272 $ 2,249,993 63,809 $ 504,212
========== ============ ========== ============
INVESTOR C SHARES:
Sold.................................................... 39,880 $ 487,360 35,127 $ 407,413
Issued as reinvestment of dividends..................... 3,347 40,846 32,384 343,436
Redeemed................................................ (41,471) (505,619) (74,185) (833,193)
---------- ------------ ---------- ------------
Net increase/(decrease)................................. 1,756 $ 22,587 (6,674) $ (82,344)
========== ============ ========== ============
INVESTOR N SHARES:
Sold.................................................... 1,751,092 $ 21,265,380 2,674,147 $ 30,201,050
Issued as reinvestment of dividends..................... 83,793 1,007,224 480,155 5,062,261
Redeemed................................................ (420,204) (5,094,099) (786,116) (8,785,774)
---------- ------------ ---------- ------------
Net increase/(decrease)................................. 1,414,681 $ 17,178,505 2,368,186 $ 26,477,537
========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS GOVERNMENT SECURITIES FUND NATIONS INTERNATIONAL EQUITY FUND
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1995 YEAR ENDED NOVEMBER 30, 1995 YEAR ENDED
(UNAUDITED) MAY 31, 1995 (UNAUDITED) MAY 31, 1995
------------------------- --------------------------- --------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
736,583 $ 7,652,085 1,463,730 $ 14,002,608 9,753,439 $119,543,537 22,828,690 $275,581,668
1,913,042 18,401,388 -- -- -- -- -- --
-- -- 3,352 32,232 -- -- 23,815 275,921
(847,836) (8,368,761) (1,964,709) (18,533,617) (4,669,848) (56,643,273) (7,414,635) (88,038,184)
--------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
1,801,789 $17,684,712 (497,627) $ (4,498,777) 5,083,591 $ 62,900,264 15,437,870 $187,819,405
========= =========== ========== ============ ========== ============ ========== ============
53,078 $ 522,627 204,950 $ 1,955,744 1,078,920 $ 13,290,018 338,220 $ 4,096,060
15,513 153,129 38,414 366,488 5 57 7,391 84,829
(143,894) (1,416,730) (568,335) (5,398,292) (1,023,666) (12,612,085) (195,903) (2,306,812)
--------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
(75,303) $ (740,974) (324,971) $ (3,076,060) 55,259 $ 677,990 149,708 $ 1,874,077
========= =========== ========== ============ ========== ============ ========== ============
35,261 $ 348,543 26,987 $ 260,866 7,366 $ 88,989 16,915 $ 196,692
4,856 47,938 14,602 139,252 -- -- 621 7,000
(55,417) (547,636) (280,270) (2,666,098) (2,113) (25,344) (2,910) (33,840)
--------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
(15,300) $ (151,155) (238,681) $ (2,265,980) 5,253 $ 63,645 14,626 $ 169,852
========= =========== ========== ============ ========== ============ ========== ============
483,812 $ 4,775,132 1,490,959 $ 14,332,577 638,718 $ 7,703,387 1,600,158 $ 19,214,591
99,642 983,634 217,970 2,077,961 -- -- 45,762 521,446
(556,193) (5,481,581) (1,760,483) (16,723,748) (252,880) (3,046,621) (384,329) (4,462,143)
--------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
27,261 $ 277,185 (51,554) $ (313,210) 385,838 $ 4,656,766 1,261,591 $ 15,273,894
========= =========== ========== ============ ========== ============ ========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 32
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
TRUST A SHARES
-------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR
11/30/95 ENDED ENDED ENDED ENDED
(UNAUDITED) 05/31/95 05/31/94 05/31/93 05/31/92
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS PRIME FUND
Operating performance:
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- --------
Net investment income..................... 0.0288 0.0519 0.0318 0.0328 0.0506
Dividends from net investment income...... (0.0288) (0.0519) (0.0318) (0.0328) (0.0506)
---------- ---------- ---------- ---------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========
Total return++............................ 2.93% 5.32% 3.22% 3.33% 5.19%+++
========== ========== ========== ========== ========
Ratios to average net assets/supplemental
data:
Net assets, end of period (000's)......... $2,751,290 $2,873,096 $2,883,762 $1,156,266 $500,476
Ratio of operating expenses to average net
assets................................... 0.30%+ 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average
net assets............................... 5.75%+ 5.23% 3.20% 3.25% 5.03%
Ratio of operating expenses to average net
assets without waivers and/or
reimbursements........................... 0.37%+ 0.38% 0.37% 0.36% 0.42%
Net investment income per share without
waivers and/or reimbursements............ $ 0.0285 $ 0.0511 $ 0.0311 $ 0.0322 $ 0.0494
<CAPTION>
TRUST A SHARES
-----------------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
05/31/91 05/31/90 05/31/89 05/31/88 05/31/87*
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS PRIME FUND
Operating performance:
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income..................... 0.0749 0.0855 0.0839 0.0675 0.0277
Dividends from net investment income...... (0.0749) (0.0855) (0.0839) (0.0675) (0.0277)
-------- -------- -------- -------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return++............................ 7.75%+++ 8.88%+++ 8.71%+++ 6.94%+++ 2.79%+++
======== ======== ======== ======== ========
Ratios to average net assets/supplemental
data:
Net assets, end of period (000's)......... $574,993 $433,298 $115,295 $264,063 $252,562
Ratio of operating expenses to average net
assets................................... 0.30% 0.32% 0.35% 0.36% 0.35%+
Ratio of net investment income to average
net assets............................... 7.47% 8.43% 8.11% 6.73% 5.99%+
Ratio of operating expenses to average net
assets without waivers and/or
reimbursements........................... 0.44% 0.50%+++ 0.55%+++ 0.56%+++ 0.65%+++
Net investment income per share without
waivers and/or reimbursements............ $ 0.0735 $ 0.0731+++ $ 0.0819+++ $ 0.0655+++ $ 0.0247+++
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR
11/30/95 ENDED ENDED ENDED ENDED
(UNAUDITED) 05/31/95 05/31/94 5/31/93 05/31/92
-------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TREASURY FUND
Operating performance:
Net asset value, beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ----------- ----------- --------- -----------
Net investment income.................... 0.0282 0.0494 0.0297 0.0307 0.0483
Dividends from net investment
income.................................. (0.0282) (0.0494) (0.0297) (0.0307) (0.0483
---------- ----------- ----------- --------- -----------
Distributions from net realized
capital gains........................... -- (0.0000)*** -- -- --
---------- ----------- ----------- --------- -----------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== =========== =========== ========= ===========
Total return++........................... 2.85% 5.05% 2.99% 3.12% 4.95+++
========== =========== =========== ========= ===========
Ratios to average net assets/supplemental
data:
Net assets, end of period (000's)........ $2,725,471 $2,896,868 $2,679,992 $2,956,796 $1,094,741
Ratio of operating expenses to average
net assets.............................. 0.30%+ 0.30% 0.30% 0.30% 0.29%
Ratio of net investment income to average
net assets.............................. 5.63%+ 4.99% 2.97% 3.02% 4.82%
Ratio of operating expenses to average
net assets without waivers and/or
reimbursements.......................... 0.36%+ 0.35% 0.36% 0.36% 0.42%
Net investment income per share without
waivers and/or reimbursements........... $ 0.0279 $ 0.0489 $ 0.0292 0.0302 $ 0.0470
<CAPTION>
TRUST A SHARES
---------------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
05/31/91 05/31/90 05/31/89 05/31/88 05/31/87**
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TREASURY FUND
Operating performance: $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net asset value, beginning of period..... --------- --------- --------- --------- ---------
0.0721 0.0829 0.0802 0.0630 0.0262
Net investment income....................
Dividends from net investment (0.0721) (0.0829) (0.0802) (0.0630) (0.0262)
income.................................. --------- --------- --------- --------- ---------
Distributions from net realized -- -- -- -- --
capital gains........................... --------- --------- --------- --------- ---------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net asset value, end of period........... ========= ========= ========= ========= =========
7.46%+++ 8.61%+++ 8.33%+++ 6.49%+++ 2.64+++
Total return++........................... ========= ========= ========= ========= =========
Ratios to average net assets/supplemental
data: $ 955,186 $ 392,843 $ 90,946 $ 111,414 $ 66,221
Net assets, end of period (000's)........
Ratio of operating expenses to average 0.25% 0.25% 0.39% 0.38% 0.35%+
net assets..............................
Ratio of net investment income to average 7.04% 8.18% 7.93% 6.31% 5.68%+
net assets..............................
Ratio of operating expenses to average
net assets without waivers and/or 0.43% 0.59%+++ 0.58%+++ 0.65%+++ 0.75%+++
reimbursements..........................
Net investment income per share without $ 0.0703 $ 0.0693+++ $ 0.0783+++ $ 0.0603+++ $ 0.0222+++
waivers and/or reimbursements...........
</TABLE>
- ---------------
* The Nations Prime Fund's Trust A, Trust B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on December 15, 1986,
June 16, 1994, July 16, 1990, May 11, 1994, November 26, 1993 and
February 9, 1995, respectively.
** The Nations Treasury Fund's Trust A, Trust B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on December 15, 1986,
June 16, 1994, July 16, 1990, May 16, 1994, May 11, 1994 and February 9,
1995, respectively.
*** Amount represents less than $0.0001.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charge.
+++ Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 33
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
TRUST B SHARES INVESTOR A SHARES
----------------------- -----------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED YEAR YEAR YEAR YEAR PERIOD
11/30/95 ENDED 11/30/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95* (UNAUDITED) 05/31/95 05/31/94 05/31/93 05/31/92 05/31/91*
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------- -------- -------- -------- --------
0.0276 0.0474 0.0271 0.0475 0.0283 0.0293 0.0470 0.0617
(0.0276) (0.0474) (0.0271) (0.0475) (0.0283) (0.0293) (0.0470) (0.0617)
-------- -------- -------- ------- -------- -------- -------- --------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= ======== ======== ======== ========
2.79% 4.84% 2.73% 4.85% 2.86% 2.97% 4.81%+++ 7.31%+++
======== ======== ======== ======= ======== ======== ======== ========
$101,221 $126,120 $967,619 $698,358 $511,833 $306,376 $281,101 $144,202
0.55%+ 0.55%+ 0.65%+ 0.75% 0.65% 0.65% 0.65% 0.65%+
5.50%+ 4.98%+ 5.40%+ 4.78% 2.85% 2.90% 4.67% 6.69%+
0.62%+ 0.63%+ 0.72%+ 0.83% 0.72% 0.71% 0.77% 0.79%+
$ 0.0273 $ 0.0466 $0.0268 $ 0.0467 $ 0.0276 $ 0.0287 $ 0.0458 $ 0.0603
<CAPTION>
INVESTOR B SHARES
------------------------------------
SIX MONTHS
ENDED YEAR YEAR
11/30/95 ENDED ENDED
(UNAUDITED) 05/31/95 05/31/94*
---------- -------- ---------
<S> <C> <C>
$ 1.00 $ 1.00 $ 1.00
-------- --------- --------
0.0276 0.0493 0.0015
(0.0276) (0.0493) (0.0015)
-------- --------- --------
$ 1.00 $ 1.00 $ 1.00
======== ======== ========
2.80% 5.03% 0.15%
======== ======== ========
$297,780 $216,973 $ 2
0.55%+ 0.56% 0.55%+
5.50%+ 4.97% 2.95%+
0.62%+ 0.64% 0.62%+
$ 0.0273 $ 0.0485 $ 0.0015
</TABLE>
<TABLE>
<CAPTION>
TRUST B SHARES INVESTOR A SHARES
----------------------- -----------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR YEAR YEAR YEAR PERIOD
11/30/95 ENDED 11/30/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95** (UNAUDITED) 05/31/95 05/31/94 05/31/93 05/31/92 05/31/91**
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------- -------- -------- -------- -------- ----------
0.0270 0.0449 0.0265 0.0457 0.0262 0.0272 0.0448 0.0592
(0.0270) (0.0449) (0.0265) (0.0457) (0.0262) (0.0272) (0.0448) (0.0592)
---------- -------- ---------- -------- -------- -------- -------- ---------
-- (0.0000)*** -- (0.0000)*** -- -- -- --
---------- -------- ---------- -------- -------- -------- -------- ---------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== ======= ======= ======= ======= ========
2.73% 4.56% 2.67% 4.65% 2.67% 2.77% 4.57%+++ 6.98%+++
======== ======= ======== ======= ======= ======= ======= ========
$ 51,123 $56,815 $144,400 $107,515 $74,195 $105,828 $90,917 $ 37,265
0.55%+ 0.55%+ 0.65%+ 0.67% 0.65% 0.65% 0.64% 0.61%+
5.38%+ 4.74%+ 5.28%+ 4.62% 2.62% 2.67% 4.47% 6.53%+
0.61%+ 0.60%+ 0.71%+ 0.72% 0.71% 0.71% 0.76% 0.83%+
$ 0.0267 $0.0444 $ 0.0262 $ 0.0452 $0.0257 $ 0.0266 $0.0435 $ 0.0570
<CAPTION>
INVESTOR B SHARES
-----------------------------------------
SIX MONTHS
ENDED YEAR YEAR
11/30/95 ENDED ENDED
(UNAUDITED) 05/31/95 05/31/94*
---------- -------- ---------
<S> <C> <C>
$ 1.00 $ 1.00 $ 1.00
-------- -------- -------
0.0270 0.0468 0.0015
(0.0270) (0.0468) (0.0015)
-------- --------- -------
-- (0.0000)*** --
======== --------- -------
$ 1.00 $ 1.00 $ 1.00
======== ======== =======
2.73% 4.76% 0.14%
======== ======== =======
$ 48,954 $52,564 2
5.55%+ 0.56% 0.55%+
5.38%+ 4.73% 2.72%+
0.61%+ 0.61% 0.61%+
$ 0.0267 $ 0.0485 $0.0014
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 34
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
INVESTOR C SHARES INVESTOR D SHARES
-------------------------------------- -------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR PERIOD ENDED PERIOD
11/30/95 ENDED ENDED 11/30/95 ENDED
(UNAUDITED) 05/31/95 05/31/94* (UNAUDITED) 05/31/95*
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS PRIME FUND
Operating performance:
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------- ---------- ----------
Net investment income....................................... 0.0276 0.0493 0.0155 0.0275 0.0173
Dividends from net investment income........................ (0.0276) (0.0493) (0.0155) (0.0275) (0.0173)
---------- -------- ---------- ---------- ----------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== ======== ========
Total return++.............................................. 2.80% 5.03% 1.58% 2.78% 1.74%
======== ======= ======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)........................... $ 67,830 $53,451 $ 1,481 $ 40 $ 2
Ratio of operating expenses to average net assets........... 0.55%+ 0.56% 0.55%+ 0.55%+ 0.55%+
Ratio of net investment income to average net assets........ 5.50%+ 4.97% 2.95%+ 5.50%+ 4.98%+
Ratio of operating expenses to average net assets without
waivers and/or reimbursements............................. 0.62%+ 0.64% 0.62%+ 0.62%+ 0.63%+
Net investment income per share without waivers and/or
reimbursements............................................ $ 0.0273 $0.0485 $0.0151 $ 0.0272 $ 0.0165
</TABLE>
<TABLE>
<CAPTION>
INVESTOR C SHARES INVESTOR D SHARES
--------------------------------------- -------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR PERIOD ENDED PERIOD
11/30/95 ENDED ENDED 11/30/95 ENDED
(UNAUDITED) 05/31/95 05/31/94** (UNAUDITED) 05/31/95**
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS TREASURY FUND
Operating performance:
Net asset value, beginning of period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------- ---------- ----------
Net investment income...................................... 0.0270 0.0468 0.0019 0.0250 0.0167
Dividends from net investment income....................... (0.0270) (0.0468) (0.0019) (0.0250) (0.0167)
---------- -------- ---------- ---------- ----------
Distributions from net realized capital gains.............. -- (0.0000)*** -- -- --
Net asset value, end of period............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== ======== ========
Total return++............................................. 2.73% 4.76% 0.19% 2.51% 1.67%
======== ======= ======== ======== ========
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).......................... $ 8,242 $ 6,373 $ 191 $ 2 $ 2
Ratio of operating expenses to average net assets.......... 0.55%+ 0.56% 0.55%+ 0.55%+ 0.55%+
Ratio of net investment income to average net assets....... 5.38%+ 4.73% 2.72%+ 5.38%+ 4.74%+
Ratio of operating expenses to average net assets without
waivers and/or reimbursements............................ 0.61%+ 0.61% 0.61%+ 0.61%+ 0.60%+
Net investment income per share without waivers and/or
reimbursements........................................... $ 0.0267 $0.0463 $ 0.0019 $ 0.0247 $ 0.0162
</TABLE>
- ---------------
* The Nations Prime Fund's Trust A, Trust B, Investor A, Investor B, Investor
C and Investor D Shares commenced operations on December 15, 1986, June 16,
1994 , July 16, 1990, May 11, 1994, November 26, 1993 and February 9, 1995,
respectively.
** The Nations Treasury Fund's Trust A, Trust B, Investor A, Investor B,
Investor C and Investor D Shares commenced operations on December 15, 1986,
June 16, 1994, July 16, 1990, May 16, 1994, May 11, 1994 and February 9,
1995, respectively.
*** Amount represents less than $0.0001.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 35
[THIS PAGE INTENTIONALLY LEFT BLANK]
33
<PAGE> 36
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
TRUST A SHARES
-----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
11/30/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 05/31/95# 05/31/94 05/31/93 05/31/92 05/31/91*
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS EQUITY INCOME FUND
Operating performance:
Net asset value, beginning of period............ $ 11.81 $ 11.43 $ 12.06 $ 11.41 $ 10.19 $ 10.00
-------- -------- ------- ------- ------- --------
Net investment income........................... 0.19 0.42 0.38 0.37 0.34 0.05
Net realized and unrealized gain on
investments.................................... 0.84 1.11 0.22 1.08 1.25 0.14
-------- -------- ------- ------- ------- --------
Net increase in net assets resulting from
investment operations.......................... 1.03 1.53 0.60 1.45 1.59 0.19
Distributions:
Dividends from net investment income............ (0.20) (0.42) (0.42) (0.35) (0.30) --
Distributions from net realized capital gains... -- (0.73) (0.81) (0.45) (0.07) --
-------- -------- ------- ------- ------- --------
Total distributions............................. (0.20) (1.15) (1.23) (0.80) (0.37) 0.00
-------- -------- ------- ------- ------- --------
Net asset value, end of period.................. $ 12.64 $ 11.81 $ 11.43 $ 12.06 $ 11.41 $ 10.19
======== ======== ======= ======= ======= ========
Total return++.................................. 8.80% 14.79 % 5.00 % 13.30 % 15.91 %+++ 1.90%+++
======== ======== ======= ======= ======= ========
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)............... $275,586 $283,082 $225,740 $175,949 $18,104 $10,194
Ratio of operating expenses to average net
assets......................................... 0.91%+ 0.92 % 0.94 % 0.92 % 1.10 % 1.12%+
Ratio of net investment income to average net
assets......................................... 3.15%+ 3.75 % 3.41 % 3.37 % 3.15 % 3.66%+
Portfolio turnover rate......................... 33% 158 % 116 % 55 % 84 % 9%
Ratio of operating expenses to average net
assets without waivers and/or reimbursements... 0.91%+ 0.93 % 0.95 % 1.04 % 2.21 % 1.80%+
Net investment income per share without waivers
and/or reimbursements.......................... $ 0.18 $ 0.42 $ 0.38 $ 0.36 $ 0.22 $ (0.06)
</TABLE>
<TABLE>
<CAPTION>
TRUST A SHARES
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
11/30/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 05/31/95# 05/31/94 05/31/93 05/31/92 05/31/91**
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NATIONS GOVERNMENT SECURITIES FUND
Operating performance:
Net asset value, beginning of period........... $ 9.86 $ 9.80 $ 10.46 $ 10.36 $ 10.05 $ 10.00
------- ------- ------- ------- ------- --------
Net investment income.......................... 0.32 0.64 0.64 0.71 0.74 0.10
Net realized and unrealized gain/(loss) on
investments................................... 0.10 0.06 (0.61) 0.13 0.37 0.02
------- ------- ------- ------- ------- --------
Net increase/(decrease) in net assets resulting
from investment operations.................... 0.42 0.70 0.03 0.84 1.11 0.12
Distributions:
Dividends from net investment income........... (0.32) (0.60) (0.58) (0.70) (0.77) (0.07)
Dividends in excess of net investment income... -- -- (0.02) -- -- --
Distributions from net realized capital
gains......................................... -- -- (0.05) (0.04) (0.03) --
Distributions from capital..................... -- (0.04) (0.04) -- -- --
------- ------- ------- ------- ------- --------
Total distributions............................ (0.32) (0.64) (0.69) (0.74) (0.80) (0.07)
------- ------- ------- ------- ------- --------
Net asset value, end of period................. $ 9.96 $ 9.86 $ 9.80 $ 10.46 $ 10.36 $ 10.05
======= ======= ======= ======= ======= ========
Total return++................................. 4.32% 7.55% 0.06 % 8.37 % 11.43 %+++ 1.19%+++
======= ======= ======= ======= ======= ========
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).............. $58,267 $39,909 $44,536 $40,472 $42,256 $ 10,047
Ratio of operating expenses to average net
assets........................................ 0.80%+ 0.76% 0.73% 0.85% 1.06% 1.10%+
Ratio of net investment income to average net
assets........................................ 6.45%+ 6.69% 6.08% 6.67% 7.15% 7.18%+
Portfolio turnover rate........................ 25% 413% 56% 103% 130% 5%
Ratio of operating expenses to average net
assets without waivers and/or
reimbursements................................ 0.94%+ 0.94% 0.94% 1.00% 1.72% 1.69%+++
Net investment income per share without waivers
and/or reimbursements......................... $ 0.31 $ 0.62 $ 0.61 $ 0.60 $ 0.07 $ 0.09+++
</TABLE>
- ---------------
* The Nations Equity Income Fund's Trust A, Investor A, Investor C and
Investor N Shares commenced operations on April 11, 1991, April 16, 1991,
June 17, 1992 and June 7, 1993, respectively.
** The Nations Government Securities Fund's Trust A, Investor A, Investor C and
Investor N Shares commenced operations on April 11, 1991, April 17, 1991,
July 6, 1992 and June 7, 1993, respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charge.
+++ Unaudited.
# Per share numbers have been calculated using the average shares method, which
more appropriately presents the per share data for the period since the use
of the undistributed income method did not accord with the results of
operations.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 37
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
11/30/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 05/31/95 05/31/94 05/31/93 05/31/92 05/31/91*
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 11.78 $ 11.41 $ 12.02 $ 11.40 $10.19 $10.04
------- ------- ------- ------- ------ ------
0.17 0.40 0.37 0.34 0.29 0.05
0.84 1.10 0.21 1.05 1.27 0.10
------- ------- ------- ------- ------ ------
1.01 1.50 0.58 1.39 1.56 0.15
(0.18) (0.40) (0.38) (0.32) (0.28) --
-- (0.73) (0.81) (0.45) (0.07) --
------- ------- ------- -------- ------ ------
(0.18) (1.13) (1.19) (0.77) (0.35) 0.00
------- ------- ------- ------- ------ ------
$ 12.61 $ 11.78 $ 11.41 $ 12.02 $11.40 $10.19
======= ======= ======= ======= ====== ======
8.69% 14.53% 4.74% 12.78% 15.59%+++ 1.49%+++
======= ======= ======= ======= ====== ======
$40,371 $35,538 $33,691 $32,760 $3,418 $ 497
1.16%+ 1.17% 1.19% 1.17% 1.35% 1.37%+
2.90%+ 3.50% 3.16% 3.12% 2.90% 3.40%+
33% 158% 116% 55% 84% 9%
1.16%+ 1.18% 1.20% 1.29% 2.46% 15.09%+
$ 0.16 $ 0.40 $ 0.37 $ 0.33 $ 0.18 $(1.30)
<CAPTION>
INVESTOR C SHARES INVESTOR N SHARES
- ------------------------------------------------------- ----------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR PERIOD ENDED YEAR PERIOD
11/30/95 ENDED ENDED ENDED 11/30/95 ENDED ENDED
(UNAUDITED) 05/31/95 05/31/94 05/31/93* (UNAUDITED) 05/31/95 05/31/94*
- ------------------------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$11.83 $11.47 $12.04 $11.13 $ 11.77 $ 11.40 $ 11.98
------ ------ ------ ------ ------- ------- -------
0.14 0.32 0.28 0.32 0.14 0.34 0.37
0.84 1.08 0.21 1.32 0.84 1.11 0.22
------ ------ ------ ------ ------- ------- -------
0.98 1.40 0.49 1.64 0.98 1.45 0.59
(0.14) (0.31) (0.25) (0.28) (0.16) (0.35) (0.36)
-- (0.73) (0.81) (0.45) -- (0.73) (0.81)
------ ------ ------ ------ ------ ------- -------
(0.14) (1.04) (1.06) (0.73) (0.16) (1.08) (1.17)
------ ------ ------ ------ ------ ------- -------
$12.67 $11.83 $11.47 $12.04 $ 12.59 $ 11.77 $ 11.40
====== ====== ====== ====== ======= ======= =======
8.34% 13.49% 3.96% 15.31% 8.37% 14.03% 4.84%
====== ====== ====== ====== ======= ======= =======
$4,601 $4,278 $4,221 $4,377 $98,454 $75,371 $46,043
1.91%+ 1.92% 1.94% 1.92%+ 1.66%+ 1.67% 1.69%+
2.15%+ 2.75% 2.41% 2.37%+ 2.40%+ 3.00% 2.66%+
33% 158% 116% 55% 33% 158% 116%
1.91%+ 1.93% 1.95% 2.04%+ 1.66%+ 1.68% 1.70%+
$ 0.13 $ 0.32 $ 0.28 $ 0.31 $ 0.13 $ 0.34 $ 0.37
</TABLE>
<TABLE>
<CAPTION>
INVESTOR A SHARES
- ------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
11/30/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 05/31/95# 05/31/94 05/31/93# 05/31/92 05/31/91*
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 9.86 $ 9.80 $ 10.46 $ 10.36 $10.05 $10.01
------- ------- ------- ------- ------ ------
0.31 0.61 0.62 0.66 0.71 0.09
0.10 0.06 (0.61 ) 0.16 0.38 0.02
------- ------- ------- ------- ------ ------
0.41 0.67 0.01 0.82 1.09 0.11
(0.31) (0.57) (0.56) (0.68) (0.75) (0.07)
-- -- (0.02) -- -- --
-- -- (0.05) (0.04) (0.03) --
-- (0.04) (0.04) -- -- --
------- ------- ------- ------- ------ ------
(0.31) (0.61) (0.67) (0.72) (0.78) (0.07)
------- ------- ------- ------- ------ ------
$ 9.96 $ 9.86 $ 9.80 $10.46 $10.36 $10.05
======= ======= ======= ======= ====== ======
4.19% 7.29% (0.11)% 8.18% 11.18%+++ 1.07%+++
======= ======= ======= ======= ====== ======
$10,291 $10,928 $14,044 $15,354 $3,326 $ 661
1.05%+ 1.01% 0.90% 1.00% 1.31% 1.35%+
6.20%+ 6.44% 5.91% 6.52% 6.90% 7.22%+
25% 413% 56% 103% 130% 5%
1.19%+ 1.19% 1.11% 1.15% 1.97% 1.94%+++
$ 0.30 $ 0.59 $ 0.59 $ 0.55 $ 0.07 $ 0.08+++
<CAPTION>
INVESTOR C SHARES INVESTOR N SHARES
- -------------------------------------------------------- ------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR PERIOD ENDED YEAR PERIOD
11/30/95 ENDED ENDED ENDED 11/30/95 ENDED ENDED
(UNAUDITED) 05/31/95# 05/31/94 05/31/93*# (UNAUDITED) 05/31/95# 05/31/94**
- -------------------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.86 $ 9.80 $10.46 $10.52 $ 9.86 $ 9.80 $ 10.49
------ ------ ----- ------ ------- ------- -------
0.28 0.57 0.55 0.59 0.29 0.58 0.54
0.10 0.06 (0.61) 0.02 0.10 0.06 (0.64)
------ ------ ------ ------ ------- ------- -------
0.38 0.63 (0.06) 0.61 0.39 0.64 (0.10)
(0.28) (0.53) (0.50) (0.63) (0.29) (0.54) (0.49)
-- -- (0.01) -- -- -- (0.01)
-- -- (0.05) (0.04) -- -- (0.05)
-- (0.04) (0.04) -- -- (0.04) (0.04)
------ ------ ------ ------ ------- ------- -------
(0.28) (0.57) (0.60) (0.67) (0.29) (0.58) (0.59)
------ ------ ------ ------ ------- ------- -------
$ 9.96 $ 9.86 $ 9.80 $10.46 $ 9.96 $ 9.86 $ 9.80
====== ====== ====== ====== ======= ======= =======
3.94% 6.76% (0.69)% 5.37% 3.99% 6.86% (1.09)%
====== ====== ====== ====== ======= ======= =======
$2,824 $2,945 $5,265 $5,998 $57,009 $56,155 $56,313
1.55%+ 1.51% 1.48% 1.60%+ 1.45%+ 1.41% 1.38%+
5.70%+ 5.94% 5.33% 5.92%+ 5.80%+ 6.04% 5.43%+
25% 413% 56% 103% 25% 413% 56%
1.69%+ 1.69% 1.69% 1.75%+ 1.59%+ 1.59%+ 1.59%+
$ 0.27 $ 0.55 $ 0.53 $ 0.42 $ 0.28 $ 0.56 $ 0.52
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 38
NATIONS FUND, INC.
Nations International Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
TRUST A SHARES
------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR
11/30/95 ENDED ENDED ENDED ENDED
(UNAUDITED)# 05/31/95# 05/31/94# 05/31/93# 05/31/92*
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operating performance:
Net asset value, beginning of period............................... $ 11.75 $ 12.06 $ 10.60 $ 10.40 $ 10.00
-------- -------- -------- -------- -------
Net investment income/(loss)....................................... 0.07 0.14 0.09 0.09 0.08
Net realized and unrealized gain/(loss) on investments............. 0.70 (0.20) 1.44 0.21 0.36
-------- -------- -------- -------- -------
Net increase/(decrease) in net assets resulting from investment
operations....................................................... 0.77 (0.06) 1.53 0.30 0.44
Distributions:
Dividends from net investment income............................... -- (0.03) (0.05) (0.08) (0.04)
Distributions from net realized capital gains...................... -- (0.12) (0.02) (0.02) --
Distributions in excess of net realized capital gains.............. -- (0.10) -- -- --
-------- -------- -------- -------- -------
Total distributions................................................ -- (0.25) (0.07) (0.10) (0.04)
-------- -------- -------- -------- -------
Net asset value, end of period..................................... $ 12.52 $ 11.75 $ 12.06 $ 10.60 $ 10.40
======== ======== ======== ======== =======
Total return++..................................................... 6.64% (0.46)% 14.37% 3.14% 4.43%+++
======== ======== ======== ======== =======
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).................................. $674,179 $572,940 $401,559 $118,873 $83,970
Ratio of operating expenses to average net assets.................. 1.15%+ 1.03% 1.17% 1.30% 1.33%+
Ratio of net investment income/(loss) to average net assets........ 0.83%+ 1.17% 0.75% 1.03% 1.81%+
Portfolio turnover rate............................................ 16% 92% 39% 41% 11%
Ratio of operating expenses to average net assets without waivers
and/or reimbursements............................................ 1.24%+ 1.04% 1.18% 1.32% 1.43%+
Net investment income/(loss) per share without waivers and/or
reimbursements................................................... $ 0.06 $ 0.14 $ 0.08 $ 0.10 $ 0.03
</TABLE>
- ---------------
* The Nations International Equity Fund's Trust A, Investor A, Investor C and
Investor N Shares commenced operations on December 2, 1991, June 3, 1992,
June 17, 1992 and June 7, 1993, respectively.
** Amount represents less than $0.01.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated and
does not reflect the deduction of any applicable sales charge.
+++ Unaudited.
# Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period since
the use of the undistributed income method did not accord with the results
of operations.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 39
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTOR A SHARES INVESTOR C SHARES
- ------------------------------------------------- -------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR PERIOD ENDED YEAR YEAR PERIOD
11/30/95 ENDED ENDED ENDED 11/30/95 ENDED ENDED ENDED
(UNAUDITED)# 05/31/95# 05/31/94# 05/31/93*# (UNAUDITED)# 05/31/95# 05/31/94# 05/31/93*#
- ------------------------------------------------- ---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$11.67 $12.00 $10.56 $10.38 $11.45 $11.86 $10.49 $10.10
------ ------ ------ ------ ------ ------ ------ ------
0.04 0.11 0.06 0.07 (0.01) 0.02 (0.03) 0.00**
0.70 (0.20) 1.44 0.21 0.70 (0.21) 1.43 0.48
------ ------ ------ ------ ------ ------ ------ ------
0.74 (0.09) 1.50 0.28 0.69 (0.19) 1.40 0.48
-- (0.02) (0.04) (0.08) -- -- (0.01) (0.07)
-- (0.12) (0.02) (0.02) -- (0.12) (0.02) (0.02)
-- (0.10) -- -- -- (0.10) -- --
------ ------ ------ ------ ------ ------ ------ ------
-- (0.24) (0.06) (0.10) 0.00 (0.22) (0.03) (0.09)
------ ------ ------ ------ ------ ------ ------ ------
$12.41 $11.67 $12.00 $10.56 $12.14 $11.45 $11.86 $10.49
------ ------ ------ ------ ------ ------ ------ ------
6.34% (0.69)% 14.00% 2.91% 6.03% (1.56)% 13.21% 4.97%
------ ------ ------ ------ ------ ------ ------ ------
$5,875 $4,877 $3,219 $ 839 $ 589 $ 495 $ 339 $ 200
1.40%+ 1.28% 1.42% 1.55%+ 2.15%+ 2.03% 2.17% 2.30%+
0.58%+ 0.92% 0.50% 0.78%+ (0.17)%+ 0.17% (0.25)% 0.03%+
16% 92% 39% 41% 16% 92% 39% 41%
1.49%+ 1.29% 1.43% 1.62%+ 2.24%+ 2.04% 2.18% 2.32%+
$ 0.03 $ 0.11 $ 0.05 $ 0.07 $(0.02) $ 0.02 $(0.03) $ 0.00**
<CAPTION>
- ------------
INVESTOR N SHARES
--------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
11/30/95 ENDED ENDED
(UNAUDITED)# 05/31/95# 05/31/94*#
- ---------------------------------------------------
<S> <C> <C>
$ 11.56 $ 11.96 $ 10.51
------- ------- -------
0.01 0.05 (0.00)**
0.70 (0.22) 1.51
------- ------- -------
0.71 (0.17) 1.51
-- (0.01) (0.04)
-- (0.12) (0.02)
-- (0.10) --
------- ------- -------
-- (0.23) (0.06)
------- ------- -------
$ 12.27 $ 11.56 $ 11.96
------- ------- -------
6.23% (1.30)% 14.32%
------- ------- -------
$38,035 $31,372 $17,349
1.90%+ 1.78% 1.92%+
0.08%+ 0.42% (0.00)%+
16% 92% 39%
1.99%+ 1.79% 1.93%+
$ 0.00** $ 0.05 $ (0.00)**
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 40
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Nations Fund, Inc. (the "Company") is a Maryland corporation registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company and consists of five
separate portfolios: Nations Prime Fund ("Prime Fund"), Nations Treasury Fund
("Treasury Fund"), Nations Equity Income Fund ("Equity Income Fund"), Nations
Government Securities Fund ("Government Securities Fund") and Nations
International Equity Fund ("International Equity Fund") (collectively, the
"Funds"). The Equity Income Fund, the Government Securities Fund and the
International Equity Fund currently offer four classes of shares: Trust A
Shares, Investor A Shares, Investor C Shares and Investor N Shares. The Prime
Fund and the Treasury Fund currently offer six classes of shares: Trust A
Shares, Trust B Shares, Investor A Shares, Investor B Shares, Investor C Shares
and Investor D Shares. The Board of Directors has authorized the issuance of
Trust B Shares of all Funds. As of November 30, 1995, no Trust B Shares of the
Equity Income Fund, Government Securities Fund and International Equity Fund
have been issued. 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 following is a
summary of the significant accounting policies followed by the Funds in the
preparation of their financial statements.
Securities Valuations: A security listed or traded on an exchange is valued at
its last sales price on the exchange where the security is principally traded
or, lacking any sales on a particular day, the security is valued at the mean
between the closing bid and asked prices on that day. Each security traded in
the over-the-counter market (but not including securities reported on the NASDAQ
National Market System) is valued at the mean between the last available bid and
asked prices based upon quotes furnished by market makers for such securities.
Each security reported on the NASDAQ National Market System is valued at the
last sales price on the valuation date. Debt obligations that are issued or
guaranteed by the U.S. government, its agencies, authorities and
instrumentalities are valued on the basis of prices provided by an independent
pricing service. Prices provided by the pricing service may be determined
without exclusive reliance on quoted prices, and may reflect appropriate factors
such as yield, type of issue, coupon rate, maturity and general market
conditions. Securities for which market quotations are not readily available are
valued at fair value under the supervision of the Board of Directors. The
portfolio securities of the Prime Fund and the Treasury Fund are valued at
amortized cost. Amortized cost valuation involves valuing an instrument at its
cost initially and, thereafter, assuming a constant amortization to maturity of
any discount or premium, regardless of the effect of fluctuating interest rates
on the market value of the instrument. Short-term obligations having 60 days or
less to maturity are valued at cost plus interest earned, which approximates
market value.
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 counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There is
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights 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 rights. The Funds' investment adviser,
acting under the supervision of 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.
Certain Funds may enter into floating rate repurchase agreements ("FRRA").
FRAA's are defined as repurchase agreements whose interest rate resets
periodically based upon a defined index, the maturity of which can be extended
or renewed. The terms of the FRRA's entered into by a Fund may include a demand
feature which allows the Fund to put the security back to the issuer at par
value after giving specified notice.
Reverse Repurchase Agreement: The Prime Fund, Treasury Fund and Government
Securities Fund each may enter into reverse repurchase agreements with
institutions that the Fund's investment adviser has determined are creditworthy.
38
<PAGE> 41
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Under a reverse repurchase agreement, a Fund sells securities and agrees to
repurchase them at a mutually agreed upon date and price. At the time a Fund
enters into a reverse repurchase agreement, it establishes a segregated account
with its custodian bank in which it will maintain cash, U.S. Government
securities or other liquid high grade debt obligations equal in value to its
obligations arising under the reverse repurchase agreement. Reverse repurchase
agreements involve the risk that the market value of the securities purchased
with the proceeds from the sale of securities received by the Fund may decline
below the price of the securities the Fund is obligated to repurchase.
Securities subject to repurchase under reverse repurchase agreements are
designated in the Schedule of Investments.
At November 30, 1995, the Treasury Fund had reverse repurchase agreements
outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount........................................................... $ 648,986,000
Maturity Date............................................................. 7/01/96
Market Value of Assets Sold Under Agreements.............................. $ 717,282,173
</TABLE>
The average weekly balance of reverse repurchase agreements outstanding during
the period ended November 30, 1995 was $690,398,776. The Prime Fund and
Government Securities Fund did not enter into any reverse repurchase agreements
during the period ended November 30, 1995.
The proceeds received by the Treasury Fund under the reverse repurchase
agreements were reinvested in a tri-party repurchase agreement. Net fees earned
during the period, representing the difference between interest rates on the
reverse repurchase and repurchase agreements, amounted to $692,438 and have been
included in interest income in the Statement of Operations.
Futures Contracts: The Equity Income Fund, the Government Securities Fund and
the International Equity Fund may enter into futures contracts for the purpose
of hedging against changes in values of a Fund's securities, in prevailing
interest rates or in currency exchange rates. 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.
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.
Foreign Currency Transactions: The International Equity Fund will generally
enter into forward currency exchange contracts only under two circumstances: (i)
when the Fund enters into a contract for the purchase or sale of a security
denominated in a foreign currency, to "lock" in the U.S. exchange rate of the
transaction. This period is a short-dated contract covering the period between
transaction date and settlement date; and (ii) when NationsBank N.A. and/or
Nations Gartmore Investment Management ("Nations Gartmore") believes that the
currency of a particular foreign country may experience a substantial movement
against the U.S. dollar. Forward foreign currency contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
recorded by the Fund as an unrealized gain or loss. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed.
Forward foreign currency contracts will be used primarily to protect the Fund
from adverse currency movements and will generally not be entered into for a
term greater than one year. The use of forward foreign currency contracts does
not eliminate fluctuations in the underlying prices of the Fund's investment
securities, but it does establish a rate of exchange that can be achieved in the
future. The use of forward contracts involves the risk that anticipated currency
movements will not be accurately predicted. A forward contract would limit the
risk of loss due to a decline in the value of a particular currency, however
they also would limit any potential gain that might result should the value of
the currency increase instead of decrease. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to
39
<PAGE> 42
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
meet the terms of their contracts. The counterparty risk exposure is, therefore,
closely monitored and contracts are only executed with high credit quality
financial institutions.
Foreign Currency: The books and records of the Funds are maintained in United
States (U.S.) dollars. Foreign currencies, investments and other assets and
liabilities are translated into U.S. dollars at the exchange rates prevailing at
the end of the period, and purchases and sales of investment securities, income
and expenses are translated on the respective dates of such transactions. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses between trade date and
settlement date of investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Fund and the amount actually received. The effects
of changes in foreign currency exchange rates on investments in securities are
not segregated in the Statement of Operations from the effects of changes in
market prices of those securities, but are included with the net realized and
unrealized gain or loss on investment securities.
Dollar Roll Transactions: The Government Securities Fund may enter into dollar
roll transactions with financial institutions to take advantage of opportunities
in the mortgage market. Dollar roll transactions consist of the sale by a Fund
of mortgage-backed or other asset-backed securities, together with a commitment
to purchase similar, but not identical, securities at a future date, at the same
price. In addition, a Fund is paid a fee as consideration for entering into the
commitment to purchase. This fee is accrued as income over the life of the
dollar roll contract. If the broker/dealer to whom a Fund sells the security
becomes insolvent, the Fund's right to purchase or repurchase the security may
be restricted; the value of the security may change adversely over the term of
the dollar roll; the security that the Fund is required to repurchase may be
worth less than the security that the Fund originally held, and the return
earned by the Fund with the proceeds of a dollar roll may not exceed transaction
costs.
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Realized gains and losses on sales are
computed on the specific identification of the securities sold. Interest income,
adjusted for amortization of market discounts and premiums on investments on the
straight line method, is earned from settlement date and is recorded on the
accrual basis. Dividend income is recorded on the ex-dividend date, except that
certain dividends from foreign securities are recorded as soon as the Funds are
informed of the ex-dividend date. Each Fund's investment income and realized and
unrealized gains and losses are allocated among the classes based upon the
relative net assets of each class.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets in
a separate account with a current value at least equal to the amount of its
when-issued purchase commitments.
Dividends and Distributions to Shareholders: Dividends from net investment
income, if any, for the Equity Income Fund and the International Equity Fund are
declared and paid each calendar quarter. Dividends from net investment income
for the Prime Fund, the Treasury Fund and the Government Securities Fund are
declared on each day the Fund is open for business and paid monthly. Net
realized capital gains (including net short-term capital gains) for the Equity
Income Fund, Government Securities Fund and International Equity Fund are
distributed at least annually. For the Prime Fund and the Treasury Fund, capital
gains, unless offset by any available capital loss carryforward, are distributed
to shareholders annually after the fiscal year in which earned or more
frequently to maintain each Fund's net asset value of $1.00 per share.
Additional distributions may be made at the discretion of the Board of Directors
in order to avoid the application of a 4% nondeductible Federal excise tax on
certain amounts of undistributed ordinary income and capital gains. Income
distributions and capital gain distributions on a Fund level are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to timing differences
and differing characterization of distributions made by the Fund as a whole.
Federal Income Taxes: Each Fund intends to qualify as a regulated investment
company by complying with the requirements of the Internal Revenue Code of 1986,
as amended, applicable to regulated investment companies and by distributing
substantially all of its earnings to its shareholders. Therefore, no Federal
income or excise tax provision is required. The Fund may be subject to foreign
taxes on income, gains on investment or currency repatriation.
Expenses: General expenses of the Company are allocated to the Funds based upon
relative net assets. Operating expenses directly attributable to a class of
shares are charged to that class' operations. Expenses of the Company not
40
<PAGE> 43
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
directly attributable to the operations of any class of shares or portfolio are
prorated among the classes based on the relative average net assets of each
class.
Cash Flow Information: Cash, as used in the Statement of Cash Flows, is the
amount reported in the Statement of Assets and Liabilities. The Company issues
its shares, invests in securities, and distributes dividends from net investment
income (which are either paid in cash or reinvested at the discretion of
shareholders). These activities are reported in the Statement of Changes in Net
Assets. Information on cash payments is presented in the Statement of Cash
Flows. Accounting practices that do not affect reporting activities on a cash
basis include unrealized gain or loss on investment securities, accretion income
recognized on investment securities and amortization of deferred organization
costs.
2. INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND
RELATED PARTY TRANSACTIONS.
The Company has entered into an Investment Advisory Agreement with NationsBank,
N.A. (together with its predecessors "NationsBank"), as successor to NationsBank
of North Carolina, N.A., an indirect wholly-owned subsidiary of NationsBank
Corporation, with respect to the Funds.
Under the terms of this Investment Advisory Agreement, NationsBank is entitled
to receive an advisory fee from the Prime Fund and the Treasury Fund at the
following annual rates of the combined average daily net assets of the Prime and
Treasury Funds:
<TABLE>
<CAPTION>
FEES ON COMBINED
ASSETS UP TO FEES ON COMBINED
$250 ASSETS EXCEEDING
MILLION $250 MILLION
<S> <C> <C>
-----------------------------------
Prime Fund..................................................... 0.25% 0.20%
Treasury Fund.................................................. 0.25% 0.20%
</TABLE>
Under the terms of the Investment Advisory Agreements, NationsBank is entitled
to receive an advisory fee from the Equity Income Fund and the Government
Securities Fund at the following annual rates of the average daily net assets of
the Equity Income and Government Securities Funds:
<TABLE>
<CAPTION>
FEES ON ASSETS FEES ON ASSETS FEES ON ASSETS
UP TO BETWEEN $100 EXCEEDING
$100 MILLION AND $250 MILLION $250 MILLION
<S> <C> <C> <C>
-------------------------------------------------
Equity Income Fund................................... 0.75% 0.70% 0.60%
Government Securities Fund........................... 0.65% 0.55% 0.50%
</TABLE>
Effective February 1, 1995, the Company on behalf of the International Equity
Fund, entered into a sub-investment advisory agreement with Nations Gartmore
Investment Management ("Nations Gartmore"). Nations Gartmore is a joint venture
structured as a general partnership between NB Partner Group, a wholly owned
subsidiary of NationsBank and Gartmore U.S. Limited, a wholly owned subsidiary
of Gartmore plc. NationsBank is entitled to receive an advisory fee of 0.90% of
the average daily net assets of the International Equity Fund. For services
provided and expenses assumed pursuant to a sub-investment advisory agreement,
Nations Gartmore is entitled to receive from NationsBank a sub-advisory fee of
0.70% of the average daily net assets of the International Equity Fund. Prior to
July 1, 1995, NationsBank received advisory fees at the annual rate of 0.40% of
its average daily net assets. Prior to July 1, 1995, Nations Gartmore received a
sub-advisory fee at the following annual rates: 0.45% of the first $100 million
of its average daily net assets, plus 0.40% of its average daily net assets in
excess of $100 million and up to $250 million, plus 0.35% of its average daily
net assets in excess of $250 million.
Stephens Inc. ("Stephens") serves as the Company's administrator pursuant to an
Administration Agreement. First Data Investor Services Group, Inc., formerly The
Shareholder Services Group, Inc., a wholly-owned subsidiary of First Data
Corporation, serves as the Company's co-administrator pursuant to a
Co-Administration Agreement. 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 average daily net assets of the Company and the
investment portfolios of Nations Fund Trust and Nations Fund Portfolios, Inc.
(other registered open-end investment companies that are part of the Nations
Fund Family) on a combined basis.
41
<PAGE> 44
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended November 30, 1995, Stephens earned $490,793 (after fee
waivers) from the Funds for its services.
The investment 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 November 30, 1995, the
investment adviser and administrator voluntarily waived fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED FEES WAIVED BY
BY ADVISER ADMINISTRATOR
------------------------------
<S> <C> <C>
Prime Fund......................................................... $ 199,785 $1,221,717
Treasury Fund...................................................... 148,372 839,324
Government Securities Fund......................................... 77,182 --
International Equity Fund.......................................... 300,813 --
</TABLE>
No officer, director or employee of NationsBank, Stephens or First Data Investor
Services Group, Inc. or any affiliate thereof, receives any compensation from
the Company for serving as a director or officer of the Company. The Company
pays each 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 Company also
reimburses expenses incurred by the Directors in attending such meetings.
Each Fund's eligible Directors may participate in a nonqualified deferred
compensation plan and a 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 funds are selected,
to the rate of return of the Nations Treasury Fund, a fund of Nations Fund, Inc.
The expense for the deferred compensation plan is included in the "Directors
fees and expenses" line of the Statements of Operations.
NationsBank of Texas, N.A., acts as custodian for the Prime Fund, the Treasury
Fund, the Equity Income Fund and the Government Securities Fund. J.P. Morgan
serves as the International Equity Fund's custodian. Prior to September 8, 1995,
Boston Safe Deposit and Trust Company served as the International Equity Fund's
custodian. First Data Investor Services Group, Inc. serves as transfer agent for
the Funds' shares. NationsBank of Texas, N.A. acts as the sub-transfer agent for
the Trust A Shares and Trust B Shares of the Funds and for the period ended
November 30, 1995, earned approximately $29,200 for providing such services. For
the six months ended November 30, 1995, NationsBank of Texas, N.A. earned
$567,979 for its custodian services.
Stephens acts as distributor of the Funds' shares. For the six months ended
November 30, 1995, the Funds were informed that the distributor received
$35,061, representing commissions (sales charges) on sales of Investor A and
Investor C Shares of the Equity Income Fund, the Government Securities Fund and
the International Equity Fund. For the six months ended November 30, 1995, the
Funds were informed that the distributor received $325,789, in contingent
deferred sales charges from Investor C and Investor N Shares of the Equity
Income Fund, the Government Securities Fund and the International Equity Fund. A
substantial portion of these fees are paid to affiliates of NationsBank.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Company has adopted a shareholder servicing plan ("Trust B Servicing Plan")
for the Trust B Shares of the Funds. Under the Trust B Servicing Plan, a Fund
may pay servicing agents that have entered into a shareholder servicing
agreement with the Company for certain shareholder support services that are
provided by the servicing agents to holders of Trust B Shares. Payments under
the Trust B Servicing Plan are accrued daily and paid monthly at a rate that
will not exceed 0.25%, on an annualized basis, of the average daily net assets
of the Trust B Shares of the Funds. For the six months ended November 30, 1995,
the Prime Fund and the Treasury Fund accrued expenses under the Trust B
Servicing Plan totaling 0.25%, on an annualized basis, of their average daily
net assets. Fees paid pursuant to the Trust B Servicing Plan are charged as
expenses of Trust B Shares of a Fund as accrued.
42
<PAGE> 45
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended November 30, 1995, the Funds incurred the following
amounts pursuant to the above plan.
<TABLE>
<CAPTION>
TRUST B
SERVICING PLAN
------------
<S> <C>
Prime Fund................................................................. $145,526
Treasury Fund.............................................................. 74,044
</TABLE>
The Company also has adopted shareholder servicing and distribution plans
("Investor A Plan") pursuant to Rule 12b-1 under the 1940 Act for the Investor A
Shares of the Funds. Pursuant to the Investor A Plan, the Funds pay fees
directly to the distributor. Payments under the Investor A Plan may not exceed
0.10%, on an annualized basis, of the average daily net assets of the Prime Fund
and the Treasury Fund, respectively, and 0.25%, on an annualized basis, of the
average daily net assets of the Equity Income Fund, the Government Securities
Fund and the International Equity Fund, respectively. For the six months ended
November 30, 1995, the Prime Fund and the Treasury Fund accrued 0.10% and the
Equity Income Fund, the Government Securities Fund and the International Equity
Fund accrued 0.25%, on an annualized basis, of their average daily net assets,
under the Investor A Plan. Fees paid pursuant to the Investor A Plan are charged
as expenses of Investor A Shares of a Fund as accrued.
The Company also has adopted a shareholder servicing plan ("Investor A Servicing
Plan") with respect to Investor A Shares of the Prime Fund and the Treasury
Fund. Pursuant to the Investor A Servicing Plan, such Funds may pay servicing
agents that have entered into a shareholder servicing agreement with the Company
for certain shareholder support services that are provided by the servicing
agents to holders of Investor A Shares. Payments under the Investor A Servicing
Plan are accrued daily and paid monthly at a rate that will not exceed 0.25%, on
an annualized basis, of the average daily net assets of the Investor A Shares of
the Prime Fund and Treasury Fund, respectively. For the six months ended
November 30, 1995, the Prime Fund and the Treasury Fund accrued expenses under
the Investor A Servicing Plan totaling 0.25%, on an annualized basis, of their
average daily net assets. Fees paid pursuant to the Investor A Servicing Plan
are charged as expenses of Investor A Shares of a Fund as accrued.
For the six months ended November 30, 1995, the Funds incurred the following
amounts pursuant to the above plans:
<TABLE>
<CAPTION>
INVESTOR A INVESTOR A
PLAN SERVICING PLAN
-------------------------------
<S> <C> <C>
Prime Fund................................................. $ 414,919 $1,037,292
Treasury Fund.............................................. 61,097 152,743
Equity Income Fund......................................... 47,547 --
Government Securities Fund................................. 13,430 --
International Equity Fund.................................. 7,047 --
</TABLE>
The Company also has adopted distribution plans ("Investor B/C Plan") pursuant
to Rule 12b-1 under the 1940 Act with respect to Investor B Shares of the Prime
Fund and Treasury Fund and Investor C Shares of the Equity Income Fund, the
Government Securities Fund and the International Equity Fund. Pursuant to the
Investor B/C Plan, the Funds pay fees directly to the distributor. Payments
under the Investor B/C Plan are accrued daily and paid monthly at a rate that
will not exceed 0.10%, on an annualized basis, of the Investor B Shares of the
Prime Fund and the Treasury Fund, respectively, and 0.75%, on an annualized
basis, of the average daily net assets of the Investor C Shares of the Equity
Income Fund, International Equity Fund and Government Securities Fund,
respectively. For the six months ended November 30, 1995, the Prime Fund and the
Treasury Fund did not accrue any expenses and the Equity Income Fund, the
Government Securities Fund and the International Fund accrued expenses under the
Investor B/C Plan totaling 0.75%, on an annualized basis, of their average daily
net assets. Fees paid pursuant to the Investor B/C Plan are charged as expenses
of the appropriate shares of a Fund as accrued.
The Company also has adopted a shareholder servicing plan ("Investor B/C
Servicing Plan") with respect to Investor B Shares of the Prime Fund and
Treasury Fund, and Investor C Shares of the Equity Income Fund, the Government
Securities Fund and the International Equity Fund. Pursuant to the Investor B/C
Servicing Plan, a Fund may pay servicing agents that have entered into a
shareholder servicing agreement with the Company for certain shareholder support
services that are provided by the servicing agents. Payments under the Investor
B/C Servicing Plan are accrued daily and paid monthly at a rate that will not
exceed 0.25%, on an annualized basis, of the average daily net assets of the
43
<PAGE> 46
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Investor B Shares of the Prime Fund and the Treasury Fund, respectively, and
Investor C Shares of the Equity Income Fund, Government Securities Fund and
International Equity Fund, respectively. For the six months ended November 30,
1995, the Government Securities Fund did not accrue any expenses and the Prime
Fund, the Treasury Fund, the Equity Income Fund, and the International Equity
Fund each accrued expenses under the Investor B/C Servicing Plan totaling 0.25%,
on an annualized basis, of their average daily net assets. Fees paid pursuant to
the Investor B/C Plan are charged as expenses of the Investor B or Investor C
Shares of a Fund as accrued.
For the six months ended November 30, 1995, the Funds incurred the following
amounts pursuant to the above plans:
<TABLE>
<CAPTION>
INVESTOR B/C INVESTOR B/C
PLAN SERVICING PLAN
---------------------------------
<S> <C> <C>
Prime Fund................................................ -- $316,641
Treasury Fund............................................. -- 77,997
Equity Income Fund........................................ $ 16,401 5,467
Government Securities Fund................................ 10,729 --
International Equity Fund................................. 2,024 682
</TABLE>
The Company also has adopted distribution plans ("Investor N Plan") pursuant to
Rule 12b-1 under the 1940 Act for the Investor N Shares of the Equity Income
Fund, Government Securities Fund and International Equity Fund. Pursuant to the
Investor N Plan, the Funds pay fees directly to the distributor. Payments under
the Investor N Plan are accrued daily and paid monthly at a rate that will not
exceed 0.75%, on an annualized basis, of the average daily net assets of the
Investor N Shares of each such Fund. For the six months ended November 30, 1995,
the Equity Income Fund, the Government Securities Fund and the International
Equity Fund accrued expenses under the Investor N Plan totaling 0.50%, 0.40% and
0.75%, respectively, on an annualized basis, of their average daily net assets.
Fees paid pursuant to the Investor N Plan are charged as expenses of Investor N
Shares of a Fund as accrued.
The Company also has adopted a shareholder servicing plan ("Investor C/N
Servicing Plan") with respect to the Investor C Shares of the Prime Fund and
Treasury Fund, and the Investor N Shares of the Equity Income Fund, Government
Securities Fund and International Equity Fund. Pursuant to the Investor C/N
Servicing Plan, a Fund may pay servicing agents for shareholder support services
provided and related expenses incurred by such servicing agents. Payments under
the Investor C/N Servicing Plan are accrued daily and paid monthly at a rate
that will not exceed 0.25%, on an annualized basis, of the average daily net
assets of the Investor C Shares of the Prime Fund and Treasury Fund,
respectively, and the Investor N Shares of the Equity Income Fund, International
Equity Fund and Government Securities Fund, respectively. For the six months
ended November 30, 1995, the International Equity Fund did not accrue any
expenses under the Investor C/N Servicing Plan. For the six months ended
November 30, 1995, the Prime Fund, the Treasury Fund, the Equity Income Fund and
the Government Securities Fund each accrued expenses under the Investor C/N
Servicing Plan totaling 0.25%, on an annualized basis, of their average daily
net assets. Fees paid pursuant to the Investor C/N Servicing Plan are charged as
expenses of Investor C or Investor N Shares of a Fund as accrued.
For the six months ended November 30, 1995, the Funds incurred the following
amounts pursuant to the above plans:
<TABLE>
<CAPTION>
INVESTOR N INVESTOR C/N
PLAN SERVICING PLAN
-------------------------------
<S> <C> <C>
Prime Fund................................................. -- $ 80,895
Treasury Fund.............................................. -- 9,539
Equity Income Fund......................................... $ 215,659 107,830
Government Securities Fund................................. 112,594 70,371
International Equity Fund.................................. 130,996 --
</TABLE>
The Company also has adopted a shareholder servicing plan ("Investor D Servicing
Plan") for the Investor D Shares of the Prime Fund and the Treasury Fund.
Pursuant to the Investor D Servicing Plan, a Fund may pay servicing agents that
have entered into a shareholder servicing agreement with the Company for certain
shareholder support services that are provided by the servicing agents to
holders of Investor D Shares. Payments under the Investor D Servicing Plan are
accrued daily and paid monthly at a rate that will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the Investor D Shares of
each Fund. For the six months ended November 30, 1995, the Prime Fund and the
Treasury
44
<PAGE> 47
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Fund accrued expenses under the Investor D Servicing Plan totaling 0.25%, on an
annualized basis, of their average daily net assets. Fees paid pursuant to the
Investor D Servicing Plan are charged as expenses of Investor D Shares of a Fund
as accrued.
For the six months ended November 30, 1995, the Funds incurred the following
amounts pursuant to the above plan.
<TABLE>
<CAPTION>
INVESTOR D
SERVICING PLAN
------------
<S> <C>
Prime Fund................................................................. $ 62
Treasury Fund.............................................................. 3
</TABLE>
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank.
4. PURCHASES AND SALES OF SECURITIES.
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities and U.S. government securities) for the six months ended
November 30, 1995, was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------------
<S> <C> <C>
Equity Income Fund.................................... $138,032,435 $110,158,437
International Equity Fund............................. 194,274,804 100,781,272
</TABLE>
Cost of purchases and proceeds from sales of long-term U.S. government
securities for the six months ended November 30, 1995 was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------------
<S> <C> <C>
Government Securities Fund............................ $ 49,231,723 $ 25,332,194
</TABLE>
At November 30, 1995, aggregate gross unrealized appreciation and aggregate
gross unrealized depreciation for tax purposes was as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
-----------------------------------
<S> <C> <C>
Equity Income Fund...................................... $ 41,581,772 $ 4,257,562
Government Securities Fund.............................. 2,013,125 219,577
International Equity Fund............................... 78,470,186 22,211,045
</TABLE>
Information regarding dollar roll transactions for the Government Securities
Fund is as follows:
<TABLE>
<S> <C>
Maximum amount outstanding during the period............ $ 22,283,720
Average amount outstanding during the period............ 3,077,784
Average monthly shares outstanding during the period.... 3,087,432
Average debt per share outstanding during the period.... $1.00
</TABLE>
The average amount outstanding during the year was calculated by summing
borrowings at the end of each day and dividing the sum by the number of days in
the six months ended November 30, 1995.
Fee income earned for the six months ended November 30, 1995, by the Fund under
dollar roll transactions aggregated $26,381.
5. CAPITAL STOCK.
As of November 30, 1995, 10,000,000,000 shares of $.001 par value capital stock
were authorized for each class of the Funds.
45
<PAGE> 48
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
6. RESTRICTED SECURITIES.
The following securities are illiquid and restricted as to resale and,
accordingly, are valued at fair value in good faith by or under the direction of
the Company's Board of Directors taking into consideration such factors as the
Board deems appropriate.
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of the Prime Fund's total net assets that each
security comprises as well as the aggregate cost of each such security at
November 30, 1995.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER 11/30/95 OF
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS COST
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Allstate Life Insurance Company:
6.073% 02/28/96*.......................... 12/27/94 $25,000,000 $1.00 $ 25,000,000 0.6% $ 25,000,000
6.073% 02/28/96*.......................... 11/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
Anchor National Life Insurance Company,
6.183% 02/28/96*.......................... 05/31/95 25,000,000 1.00 25,000,000 0.6 25,000,000
Commonwealth Life Insurance Company, Inc.:
6.090% 05/28/96*.......................... 08/02/93 62,000,000 1.00 62,000,000 1.5 62,000,000
6.090% 05/28/96*.......................... 06/01/93 10,000,000 1.00 10,000,000 0.2 10,000,000
Goldman Sachs Group, L.P.,
5.875% 04/16/96*.......................... 10/18/95 50,000,000 1.00 50,000,000 1.2 50,000,000
Life Insurance Company of Georgia,
6.100% 05/28/96*.......................... 08/23/93 60,000,000 1.00 60,000,000 1.4 60,000,000
Peoples Security Life Insurance Company,
6.090% 05/28/96*.......................... 01/15/94 20,000,000 1.00 20,000,000 0.5 20,000,000
Sun Life Insurance Company of America,
6.118% 05/28/96*.......................... 08/19/94 50,000,000 1.00 50,000,000 1.2 50,000,000
Travelers Life Insurance Company,
5.940% 12/30/95*.......................... 01/11/94 25,000,000 1.00 25,000,000 0.6 25,000,000
- ------------------------------------------------------------------------------------------------------------------------------
*Reset Date $352,000,000 8.4% $352,000,000
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of the Treasury Fund's total net assets that the
security comprises as well as the aggregate cost of each such security at
November 30, 1995.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER 11/30/95 OF
REPURCHASE AGREEMENT DATE PAR VALUE UNIT VALUE NET ASSETS COST
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CS First Boston Corporation,
6.550% 01/02/96*.......................... 11/16/95 $60,000,000 $1.00 $ 60,000,000 2.0% $ 60,000,000
Merrill Lynch & Company,
6.000% 04/11/96........................... 04/12/95 75,000,000 1.00 75,000,000 2.5 75,000,000
- ------------------------------------------------------------------------------------------------------------------------------
*Reset Date $135,000,000 4.5% $135,000,000
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Certain securities may be sold only pursuant to certain legal restrictions, and
may be difficult to sell. The Prime Fund and Treasury Fund will not invest more
than 10% of the value of their respective net assets in securities that are
illiquid.
The following securities of the Prime Fund are restricted to resale, however,
they are considered liquid due to the put feature which allows the Fund to put
the security back to the issuer at par value within seven calendar days notice.
46
<PAGE> 49
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The following table shows the acquisition date, the par value, value per unit,
market value, the percentage of the Prime Fund's total net assets that each
security comprises as well as the aggregate cost of each such security at
November 30, 1995.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER 11/30/95 OF
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS COST
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Life Insurance Company of Virginia:
5.871% 12/07/95*.......................... 08/03/93 $50,000,000 $1.00 $ 50,000,000 1.2% $ 50,000,000
5.918% 12/07/95*.......................... 02/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
5.918% 12/07/95*.......................... 03/01/95 25,000,000 1.00 25,000,000 0.6 25,000,000
- ------------------------------------------------------------------------------------------------------------------------------
*Reset Date $100,000,000 2.4% $100,000,000
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7. ORGANIZATION COSTS.
Each Fund bears all costs in connection with its organization including the fees
and expenses of registering and qualifying its 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 the commencement of
operations of each Fund. 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, the Fund will
be reimbursed for any unamortized costs in the same proportion as the number of
shares redeemed bears to the number of initial shares outstanding at the time of
the redemption. All such costs for the Prime Fund, Treasury Fund and Government
Securities Fund have been fully amortized.
8. FOREIGN SECURITIES.
The Equity Income Fund and the International Equity Fund invest in foreign
securities. Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and U.S. Government securities. These risks include
revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S. Government
securities.
9. LINE OF CREDIT.
The Company and Nations Fund Trust participate in a $25 million line of credit
provided by Mellon Bank, N.A. (the "Bank") under a Line of Credit Agreement (the
"Agreement") dated March 17, 1994. 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 this 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
Bank's Money Market Rate or the London Interbank Offered Rate (LIBOR) plus 0.25%
on an annualized basis. Each Fund and the other affiliated entities are charged
an aggregate commitment fee of 0.25% per annum on the amount of the credit. Each
Fund is liable only for that portion of the commitment 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 net assets (not including funds borrowed pursuant to the
Agreement) to aggregate amount of indebtedness pursuant to the Agreement of no
less than 4 to 1. During the six months ended November 30, 1995, the Funds did
not borrow under the Agreement.
10. CAPITAL LOSS CARRYFORWARD.
At May 31, 1995, the following Funds had available for Federal income tax
purposes the following unused capital losses:
<TABLE>
<CAPTION>
LOSSES DEFERRED LOSSES DEFERRED
FUND EXPIRING IN 2000 EXPIRING IN 2003
--------------------------------------------------------------------------------------------
<S> <C> <C>
Prime Fund........................................... $420,174 --
Government Securities Fund........................... -- $6,877,846
</TABLE>
47
<PAGE> 50
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Under the current tax law, capital and currency losses realized after October
31, may be deferred and treated as occurring on the first day of the following
fiscal year. For the fiscal year ended May 31, 1995, the following Funds have
elected to defer losses occurring between November 1, 1994, and May 31, 1995,
under these rules, as follows:
<TABLE>
<CAPTION>
POST-OCTOBER POST-OCTOBER CAPITAL
CURRENCY SHORT TERM LONG TERM
FUND LOSS DEFERRAL LOSS DEFERRAL LOSS DEFERRAL
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Prime Fund................................. -- $ 7,378 --
Treasury Fund.............................. -- 10,035 --
Equity Income Fund......................... -- -- $ 1,449,728
Government Securities...................... -- -- 211,303
International Equity....................... $22,131,570 11,443,956 (8,147,321)
</TABLE>
11. REORGANIZATION.
The Acquiring Fund acquired the assets and certain liabilities of 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>
TOTAL NET
SHARES VALUE OF TOTAL NET TOTAL NET ASSETS OF ACQUIRED
ISSUED BY SHARES ISSUED ASSETS OF ASSETS OF ACQUIRING FUND
ACQUIRING ACQUIRED ACQUIRING BY ACQUIRING ACQUIRED ACQUIRING FUND AFTER UNREALIZED
FUND FUND DATE FUND FUND FUND FUND ACQUISITION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Government
Securities
Fund Mortgage-
Backed
Securities
Fund 11/17/1995 1,913,042 $18,401,388 $18,401,388 $109,473,874 $127,875,262 $185,782
</TABLE>
12. SUBSEQUENT EVENT.
Effective January 1, 1996, NationsBanc Advisors, Inc. will become the investment
advisor to the Company. Also effective January 1, 1996, TradeStreet Investment
Associates, Inc. will become the sub-advisor to the Company, except the
International Equity Fund which will continue to be sub-advised by Nations
Gartmore. Both NationsBanc Advisors, Inc. and TradeStreet Investment Associates,
Inc. are indirect wholly-owned subsidiaries of NationsBank. There will be no
change in advisory fees paid by the Company.
48
<PAGE> 51
NATIONS FUND, INC.
- --------------------------------------------------------------------------------
MEETING OF SHAREHOLDERS
On November 15, 1995, a Special Meeting of Shareholders of Nations
Mortgage-Backed Securities Fund was held. The purpose of the meeting was to
approve the merger of Nations Mortgage-Backed Securities Fund into Nations
Government Securities Fund. At the meeting 5,705,995 votes were cast in favor of
the proposal, no votes were cast against the proposal and there were no
abstentions.
49
<PAGE> 52
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 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
<PAGE> 53
This report is submitted for the general information of shareholders of Nations
Fund, Inc. This material must be accompanied or preceded by a Nations Fund
prospectus.
<PAGE> 54
[NATIONS LOGO]
PO Box 34602
Charlotte, NC 28234-4602
Toll Free 1-800-982-2271
BULK RATE
U.S. POSTAGE
PAID
BOSTON,MA
PERMIT NO.
54201
