<PAGE> 1
NATIONS [GRAPHIC]
FUNDS
Investments For A Lifetime[SM]
DOMESTIC Nations
Balanced Assets
Fund
STOCK Nations
Equity Income
Fund
FUNDS Nations Value Fund
Nations
Equity Index Fund
Nations
Capital Growth
Fund
Nations
Disciplined Equity
Fund
Nations
Emerging Growth
Fund
Nations
Small Company
Growth Fund
SEMI-ANNUAL REPORT FOR THE PERIOD
ENDED SEPTEMBER 30, 1997
<PAGE> 2
This Report is submitted for
the general information of
shareholders of Nations Funds.
This material must be preceded or
accompanied by a current Nations
Funds prospectus.
Nations Funds Distributor:
Stephens Inc. Stephens Inc., which
is not affiliated with NationsBank,
N.A., is not a bank, and securities
offered by it are not guaranteed by [GRAPHIC DEPICTING BASKETS]
any bank or insured by the FDIC.
Stephens Inc., member NYSE, SIPC.
Nations Funds Investment Adviser:
NationsBanc Advisors, Inc.
Nations Funds Investment Sub-
Advisers: TradeStreet Investment
Associates, Inc., Gartmore Global
Partners and Boatmen's Capital
Management, Inc.
- ----------------------------------
NOT FDIC
INSURED
- ----------------------------------
MAY LOSE VALUE
- ----------------------------------
NO BANK GUARANTEE
- ----------------------------------
<PAGE> 3
NATIONS FUNDS
DEAR SHAREHOLDER:
The capital markets, particularly the U.S. stock markets, have continued to
surprise participants with solid investment returns through the first nine
months of 1997. But as we had anticipated in January, the markets have become
more volatile than in the previous two years. Stock investors have experienced
more daily swings exceeding one percent of value than at any time in the 1990s.
Bond investors have seen yields move up and down in a broad range for most of
the year. Meanwhile, municipal securities have enjoyed better total returns than
their taxable counterparts.
Investors have continued to benefit from the outstanding economic conditions in
the U.S. Employment is high and jobs are being produced at a 200,000-plus rate
monthly. The growth rate for the U.S. economy has exceeded three percent in real
terms (after inflation) for the past four quarters. Corporate profits are
exceeding Wall Street estimates and should finish the year up about twelve
percent, which would make 1997 a record sixth consecutive year of double-digit
profit growth. Inflation is perhaps the biggest of all: retail inflation has
registered a benign 2.2 percent for the past year, and wholesale inflation has
actually dropped over the same period.
As we have noted, investors have been the beneficiaries of strong economic and
market conditions over the past three years. However, we do not subscribe to the
notion that the historical business cycle has been "repealed." Indeed, we
encourage investors to maintain reasonable expectations about the future. A
recent national survey of 750 mutual fund investors conducted by Montgomery
Asset Management found that those shareholders surveyed anticipated average
annual returns of 34 percent on their investments over the next decade. Such
results, roughly triple the average annual return from stocks over the past 60
years, demonstrate the strong exuberance in the marketplace and give us some
cause for concern. We believe investors should temper their expectations of the
future and enjoy the rewards of the recent past.
That being said, there is little on the horizon that would suggest trouble for
investors as 1997 draws to a close. We believe that the pattern of the past
several years will continue to hold true and should produce a reasonable
investment environment as we move into the new year. The economy continues its
vigorous pace, monetary policy is neutral, inflation is virtually absent, and
the profit picture remains intact. However, any changes on any of these fronts
could translate into market volatility. On behalf of our shareholders, we will
stay vigilant in our work as we pursue the Funds' investment objectives.
<TABLE>
<S> <C>
Sincerely,
/s/ A. Max Walker /s/ Mark Williamson
A. Max Walker Mark Williamson
President and Chairman of the Board President, NationsBanc Advisors, Inc.
</TABLE>
September 30, 1997
ADDENDUM
Since the date of this report, equity markets worldwide have experienced
enormous volatility sparked by events in the Pacific Rim. However, the U.S.
economic picture remains positive -- fundamentals have not changed. Although we
expect continued volatility, our long-term view of the domestic market remains
intact.
November 26, 1997
1
<PAGE> 4
NATIONS FUNDS
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 63.6%
AEROSPACE AND DEFENSE -- 2.6%
20,675 Litton Industries, Inc.+............ $ 1,124,203
16,200 Lockheed Martin Corporation......... 1,727,325
24,575 Raytheon Company.................... 1,452,997
35,350 TRW Inc. ........................... 1,939,831
------------
6,244,356
------------
APPAREL AND TEXTILES -- 1.8%
70,225 Fruit of the Loom Inc., Class A+.... 1,975,078
11,025 Liz Claiborne Inc. ................. 605,686
33,400 Nike Inc., Class B.................. 1,770,200
------------
4,350,964
------------
AUTOMOBILE PARTS MANUFACTURERS -- 1.2%
28,400 Genuine Parts Company............... 875,075
42,200 Snap-On Inc. ....................... 1,943,838
------------
2,818,913
------------
BANKS -- 1.4%
31,600 PNC Bank Corporation................ 1,542,475
34,775 Southtrust Corporation.............. 1,712,669
------------
3,255,144
------------
BEVERAGES -- 2.2%
44,900 Anheuser-Busch Companies, Inc. ..... 2,026,112
19,600 Coca-Cola Company................... 1,194,375
47,000 PepsiCo Inc. ....................... 1,906,437
------------
5,126,924
------------
BUILDING PRODUCTS -- AIR & HEATING -- 1.8%
33,000 Armstrong World International....... 2,213,063
49,000 York International Corporation...... 2,192,750
------------
4,405,813
------------
CHEMICALS -- BASIC -- 1.6%
23,625 Dow Chemical Company................ 2,142,492
27,200 PPG Industries, Inc................. 1,705,100
------------
3,847,592
------------
CHEMICALS -- SPECIALTY -- 2.5%
26,500 BetzDearborn, Inc. ................. 1,811,937
53,200 Ferro Corporation................... 2,031,575
42,000 Great Lakes Chemical Corporation.... 2,071,125
------------
5,914,637
------------
COAL, GAS AND PIPELINE -- 1.0%
35,650 Eastern Enterprises................. 1,330,191
105,850 Transportadora de Gas del Sur, SA,
ADR............................... 1,190,812
------------
2,521,003
------------
COMPUTER SERVICES -- 0.9%
44,800 Automatic Data Processing Inc. ..... 2,240,000
------------
COMPUTER SOFTWARE -- 0.6%
43,550 Cabletron Systems Inc.+............. 1,393,600
------------
CONSTRUCTION -- 0.5%
21,150 Fluor Corporation................... 1,134,169
------------
CONTAINERS -- 0.5%
24,650 Crown Cork & Seal Inc. ............. 1,136,981
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
COSMETICS AND TOILETRY -- 0.9%
10,850 Gillette Company.................... $ 936,491
24,700 Kimberly-Clark Corporation.......... 1,208,756
------------
2,145,247
------------
DATA PROCESSING/MANAGEMENT -- 0.9%
56,775 First Data Corporation.............. 2,132,611
------------
DRUGS -- 0.9%
30,300 American Home Products
Corporation....................... 2,211,900
------------
ELECTRIC POWER -- 4.2%
60,900 Baltimore Gas & Electric Company.... 1,689,975
49,300 CINergy Corporation................. 1,648,469
65,100 DPL Inc. ........................... 1,594,950
28,800 DTE Energy Company.................. 876,600
41,800 Duke Energy Corporation............. 2,066,487
83,700 Entergy Corporation................. 2,181,431
------------
10,057,912
------------
ELECTRONICS -- 0.9%
30,900 Motorola, Inc....................... 2,220,938
------------
FINANCIAL SERVICES -- 2.5%
85,900 Advanta Corporation................. 2,501,838
55,100 Freddie Mac......................... 1,942,275
14,000 Transamerica Corporation............ 1,393,000
------------
5,837,113
------------
FOOD PRODUCERS -- 1.6%
24,450 McCormick & Company................. 588,328
42,700 Nabisco Holdings Corporation, Class
A................................. 1,817,419
32,050 Universal Foods Corporation......... 1,290,012
------------
3,695,759
------------
FOOD RETAILERS -- 1.0%
74,250 Great Atlantic & Pacific Tea Inc.... 2,357,437
------------
FURNITURE AND APPLIANCES -- 0.9%
70,800 Rubbermaid, Inc. ................... 1,809,825
35,550 Shaw Industries, Inc. .............. 446,597
------------
2,256,422
------------
GAS-DISTRIBUTION -- 0.6%
42,050 Keyspan Energy Corporation.......... 1,403,419
------------
INSURANCE -- 3.0%
27,200 Aetna Inc. ......................... 2,215,100
41,663 Berkley (W.R.) Corporation.......... 1,794,091
8,750 CNA Financial Corporation+.......... 1,110,703
22,950 Hartford Financial Services Group
Inc. ............................. 1,975,134
------------
7,095,028
------------
MACHINERY AND EQUIPMENT -- 1.4%
32,525 General Signal Corporation.......... 1,406,706
32,200 Nordson Corporation................. 1,887,725
------------
3,294,431
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 5
NATIONS FUNDS
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MEDICAL PRODUCTS AND
SUPPLIES -- 4.0%
32,150 Abbott Laboratories................. $ 2,055,591
39,700 Amgen, Inc. ........................ 1,903,119
44,450 Becton, Dickinson & Company......... 2,128,044
27,100 R.P. Scherer Corporation+........... 1,678,506
61,650 United States Surgical
Corporation....................... 1,799,409
------------
9,564,669
------------
MEDICAL SERVICES -- 0.5%
70,700 Beverly Enterprises+................ 1,228,413
------------
MISCELLANEOUS MANUFACTURER -- 1.0%
36,600 Dexter Corporation.................. 1,466,287
21,900 Olin Corporation.................... 1,025,194
------------
2,491,481
------------
OIL -- DOMESTIC -- 3.2%
9,800 Amoco Corporation................... 944,475
20,850 Kerr-McGee Corporation.............. 1,434,741
36,450 Unocal Corporation.................. 1,576,462
38,900 Repsol S.A., ADR.................... 1,687,287
60,550 Ultramar Diamond Shamrock
Corporation....................... 1,956,522
------------
7,599,487
------------
OIL -- INTERNATIONAL -- 1.4%
18,975 Mobil Corporation................... 1,404,150
78,500 Occidental Petroleum Corporation.... 2,036,094
------------
3,440,244
------------
RECREATION -- 1.8%
1 Ascent Entertainment Group, Inc.+... 9
27,600 Disney (Walt) Company............... 2,225,250
73,575 Hasbro Inc. ........................ 2,069,297
------------
4,294,556
------------
RESTAURANTS AND LODGING -- 1.0%
117,150 Wendy's International Inc. ......... 2,489,437
------------
RETAIL -- DISCOUNT -- 1.2%
127,150 Woolworth Corporation+.............. 2,813,194
------------
RETAIL -- GENERAL -- 0.9%
36,650 Sears, Roebuck & Company............ 2,086,759
------------
RETAIL -- SPECIALTY -- 2.0%
166,250 Heilig-Meyers Company............... 2,556,094
56,625 Lowe's Companies, Inc. ............. 2,201,298
------------
4,757,392
------------
STEEL -- 0.8%
34,300 Nucor Corporation................... 1,807,181
------------
TELECOMMUNICATIONS -- 1.5%
89,950 MCI Communications Corporation...... 2,642,281
40,475 360 Communications Company+......... 844,916
------------
3,487,197
------------
TOBACCO -- 0.9%
51,800 Philip Morris Companies Inc. ....... 2,152,938
------------
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TRANSPORTATION -- RAILROADS -- 0.6%
14,800 Burlington Northern Santa Fe Inc.... $ 1,430,050
------------
UTILITIES -- NATURAL GAS -- 0.9%
66,100 Equitable Resources Inc............. 2,082,150
------------
UTILITIES -- TELEPHONE -- 3.8%
34,375 Ameritech Corporation............... 2,285,938
42,100 GTE Corporation..................... 1,910,287
31,000 SBC Communications Inc.............. 1,902,625
21,500 Sprint Corporation.................. 1,075,000
49,400 U.S. West Inc. ..................... 1,901,900
------------
9,075,750
------------
WIRE AND CABLE PRODUCTS -- 0.7%
44,500 Belden, Inc. ....................... 1,677,094
------------
TOTAL COMMON STOCKS
(Cost $143,958,150)............... 151,576,305
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C> <C>
ASSET-BACKED SECURITIES -- 3.3%
Chase Manhattan Credit Card
$ 990,000 Master Trust, Series 1996-4,
Class A,
6.730% 02/15/03..................
1,000,821
Circuit City Credit Card Master
1,350,000 Trust,
Series 1995-1, Class A,
6.375% 08/15/05..................
1,356,750
1,550,000 CS First Boston Mortgage Securities
Corporation, Series 1996-2,
Class A4,
6.620% 02/25/18.................. 1,552,906
EQCC Home Equity Loan Trust:
1,000,000 Series 1996-2, Class A2,
6.700% 09/15/08.................. 1,006,875
840,000 Series 1997-2, Class A5,
6.540% 04/15/11.................. 844,725
825,000 Metris Master Trust,
Series 1996-1, Class A,
6.450% 02/20/02.................. 830,156
1,250,000 Premier Auto,
6.530% 12/06/03.................. 1,259,766
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $7,802,349)................ 7,851,999
============
CORPORATE BONDS AND NOTES -- 6.7%
AUTOMOTIVE -- 0.3%
720,000 Ford Motor Credit Company, MTN,
7.500% 08/01/26.................. 747,295
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 6
NATIONS FUNDS
Nations Balanced Assets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
CORPORATE)BONDS AND NOTES -- (CONTINUED
BANKING AND FINANCE -- 4.5%
$ 550,000 AON Capital Trust,
8.205% 01/01/27.................. $ 590,326
2,300,000 Associates Corporation N.A.,
6.750% 07/15/01.................. 2,331,165
1,300,000 BankAmerica Capital,
8.000% 12/15/26.................. 1,348,646
350,000 BanPonce Corporation, MTN,
6.550% 10/10/00.................. 352,142
900,000 Bear Stearns Company, Senior Notes,
6.750% 05/01/01.................. 909,657
1,125,000 Chrysler Financial Corporation,
Sub. Notes,
6.375% 01/28/00.................. 1,129,905
1,250,000 Lehman Brothers Holdings, MTN,
6.850% 10/08/99.................. 1,265,113
Paine Webber Group:
800,000 7.700% 02/11/00.................... 824,200
825,000 7.300% 10/15/03.................... 850,427
Union Planters Corporation, Sub.
1,250,000 Notes,
6.750% 11/01/05..................
1,241,088
------------
10,842,669
------------
ENTERTAINMENT -- 0.3%
615,000 Walt Disney Company,
6.750% 03/30/06.................. 620,400
------------
INDUSTRIAL -- 1.6%
Auburn Hills Trust Certificates,
575,000 Deb.,
12.000% 05/01/20++...............
881,038
425,000 Coca-Cola Enterprises,
6.950% 11/15/26.................. 412,811
600,000 News America Holdings,
7.500% 03/01/00.................. 615,120
1,350,000 Sears Roebuck Acceptance
Corporation, MTN,
6.540% 02/20/03.................. 1,350,878
530,000 Xerox Capital Trust I,
8.000% 02/01/27.................. 542,890
------------
3,802,737
------------
TOTAL CORPORATE BONDS AND NOTES
(Cost $15,682,734)............... 16,013,101
============
MORTGAGE-BACKED SECURITIES -- 9.5%
FEDERAL HOME LOAN MORTGAGE
CORPORATION (FHLMC)
CERTIFICATE -- 0.9%
2,149,930 GOLD,
6.500% 08/01/10.................. 2,144,835
============
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA)
CERTIFICATES -- 4.2%
3,117,302 7.000% 06/01/11 -- 04/01/2 (2
Pools)........................... 3,118,981
1,505,905 7.500% 09/01/25.................... 1,533,674
1,300,467 8.000% 09/15/25.................... 1,350,457
2,887,889 8.500% 06/01/26 -- 07/01/26 (2
Pools)........................... 3,016,920
879,450 9.000% 08/01/24.................... 939,174
------------
9,959,206
------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C> <C>
MORTGAGE-BACKED SECURITIES -- (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA)
CERTIFICATES -- 4.4%
$1,085,072 7.500% 02/15/27.................... $ 1,103,713
6,967,730 8.000% 06/15/22 -- 08/15/27 (2
Pools)........................... 7,208,050
1,129,738 8.500% 08/15/24.................... 1,184,100
819,491 9.500% 02/15/25.................... 887,607
------------
10,383,470
------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $22,104,332)............... 22,487,511
============
U.S. TREASURY SECURITIES -- 15.1%
U.S. TREASURY BOND -- 3.6%
8,730,000 6.250% 08/15/23.................... 8,474,909
------------
U.S. TREASURY NOTES -- 11.5%
7,805,000 6.000% 08/15/99.................... 7,826,932
8,200,000 6.250% 08/31/00.................... 8,275,604
4,065,000 6.625% 03/31/02.................... 4,161,544
7,220,000 6.125% 08/15/07.................... 7,223,393
------------
27,487,473
------------
TOTAL U.S. TREASURY SECURITIES
(Cost $35,657,001)............... 35,962,382
============
TOTAL SECURITIES
(Cost $225,204,566).............. 233,891,298
============
REPURCHASE AGREEMENT -- 2.5%
(Cost $5,939,000)
5,939,000 Agreement with Smith Barney, 5.480%
dated 09/30/97, to be repurchased
at $5,939,904 on 10/01/97,
collateralized by: $2,528,966
U.S. Treasury Note, 7.375% due
11/15/97; $689,929 U.S. Treasury
Bond, 11.250% due 02/15/15;
$1,777,799 Resolution Funding
Corp. Strips, Principal Only, due
04/15/05; $1,274,982 GNMA, 6.000%
due 05/20/27..................... 5,939,000
============
TOTAL INVESTMENTS
(Cost $231,143,566*)................ 100.7% 239,830,298
OTHER ASSETS AND (0.7) (1,689,896)
LIABILITIES (NET)...................
----- ------------
NET ASSETS............................ 100.0% $238,140,402
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
++ Step coupon bond. Current rate remains in effect through maturity date.
Effective yield was 12.39% at acquisition date.
ABBREVIATIONS:
<TABLE>
<S> <C>
ADR American Depositary Receipt
GOLD Payments are on an accelerated 45-day payment cycle
instead of 75-day cycle
MTN Medium Term Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 7
NATIONS FUNDS
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 83.8%
AEROSPACE AND DEFENSE -- 2.1%
145,600 Raytheon Company................. $ 8,608,600
60,000 TRW Inc. ........................ 3,292,500
------------
11,901,100
------------
AUTOMOBILE PARTS MANUFACTURERS -- 3.2%
296,500 Cooper Tire & Rubber Company..... 7,875,781
30,600..... Eaton Corporation................ 2,826,675
246,550.... Genuine Parts Company............ 7,596,822
------------
18,299,278
------------
BANKS -- 4.5%
100,000.... Banc One Corporation............. 5,581,250
25,000..... Chase Manhattan Corporation...... 2,950,000
56,600..... CoreStates Financial
Corporation.................... 3,746,212
87,000..... Crestar Financial Corporation.... 4,078,125
79,200..... Fleet Financial Group Inc........ 5,192,550
32,500..... Morgan (J. P.) & Company Inc..... 3,692,812
------------
25,240,949
------------
BEVERAGES -- 1.5%
204,000 PepsiCo Inc...................... 8,274,750
------------
BUILDING PRODUCTS -- AIR & HEATING -- 0.3%
33,200 York International Corporation... 1,485,700
------------
CHEMICALS -- BASIC -- 2.6%
125,300 Imperial Chemical Industries Plc
ADR............................ 8,285,463
271,100 Wellman, Inc. ................... 6,286,131
------------
14,571,594
------------
CHEMICALS -- SPECIALTY -- 3.5%
394,900 Engelhard Corporation............ 8,515,031
59,300 Morton International Inc.,
Industries..................... 2,105,150
456,200 RPM, Inc. ....................... 9,352,100
------------
19,972,281
------------
COMPUTER RELATED -- 0.8%
66,000 Hewlett-Packard Company.......... 4,591,125
------------
COMPUTER SERVICES -- 0.8%
64,300 Computer Associates
International, Inc. ........... 4,617,544
------------
CONTAINERS -- 1.3%
161,000 Crown Cork & Seal Inc. .......... 7,426,125
------------
COSMETICS AND TOILETRY -- 1.1%
125,500 Kimberly-Clark Corporation....... 6,141,656
------------
DIVERSIFIED -- 3.3%
106,629 Cooper Industries Inc. .......... 5,764,630
123,600 Fluor Corporation................ 6,628,050
140,700 National Service Industries...... 6,182,006
------------
18,574,686
------------
ELECTRIC POWER -- 6.4%
101,400 Baltimore Gas & Electric
Company........................ $ 2,813,850
109,400 CINergy Corporation.............. 3,658,063
88,000 Consolidated Edison Company New
York Inc. ..................... 2,992,000
128,966 Duke Energy Corporation.......... 6,375,757
72,700 OGE Energy Corporation........... 3,430,531
215,260 PacifiCorp....................... 4,816,443
156,900 SCANA Corporation................ 3,932,306
111,900 Southern Company................. 2,524,744
98,854 Unicom Corporation............... 2,310,712
100,000 Western Resources, Inc. ......... 3,431,250
------------
36,285,656
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- 1.3%
143,500 AMP Inc. ........................ $ 7,686,219
------------
FOOD PRODUCERS -- 3.0%
80,300 Chiquita Brands International
Inc. .......................... 1,294,837
43,000 CPC International Inc. .......... 3,982,875
84,600 General Mills Inc. .............. 5,832,112
233,800 McCormack & Company.............. 5,625,813
------------
16,735,637
------------
FOOD RETAILERS -- 2.2%
391,500 Food Lion, Inc., Class A......... 3,266,578
154,700 Food Lion, Inc., Class B......... 1,237,600
199,800 Supervalu Inc. .................. 7,842,150
------------
12,346,328
------------
FURNITURE AND APPLIANCES -- 1.2%
80,917 Rubbermaid, Inc. ................ 2,068,441
73,700 Whirlpool Corporation............ 4,887,231
------------
6,955,672
------------
GAS DISTRIBUTION -- 1.5%
114,700 KeySpan Energy Corporation....... 3,828,113
123,800 NICOR Inc. ...................... 4,642,500
------------
8,470,613
------------
INSURANCE -- 2.2%
35,700 General Re Corporation........... 7,086,450
30,100 Lincoln National Corporation
Ltd. .......................... 2,095,713
40,500 St. Paul Companies Inc. ......... 3,303,281
------------
12,485,444
------------
MACHINERY AND EQUIPMENT -- 3.6%
32,100 Dover Corporation................ 2,178,787
175,600 Foster Wheeler Corporation....... 7,715,425
132,811 General Signal Corporation....... 5,744,076
225,700 Pall Corporation................. 4,866,656
------------
20,504,944
------------
MEDICAL PRODUCTS AND SUPPLIES -- 2.4%
113,800 Becton, Dickinson & Company...... 5,448,175
196,300 Mallinckrodt Inc................. 7,066,800
28,800 United States Surgical
Corporation.................... 840,600
------------
13,355,575
------------
METALS AND MINING -- 1.0%
238,800 Cyprus Amax Minerals Company..... 5,731,200
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 8
NATIONS FUNDS
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
METALS PROCESSORS -- 1.3%
365,800 Worthington Industries, Inc. .... $ 7,407,450
------------
OIL -- DOMESTIC -- 3.8%
24,924 Amoco Corporation................ 2,402,050
76,218 Atlantic Richfield Company....... 6,511,875
291,500 Occidental Petroleum
Corporation.................... 7,560,781
113,875 Sun Company, Inc. ............... 4,989,148
------------
21,463,854
------------
OIL -- INTERNATIONAL -- 1.5%
17,100 Chevron Corporation.............. 1,422,506
94,200 Mobil Corporation................ 6,970,800
------------
8,393,306
------------
OIL SERVICES -- 1.1%
152,500 Dresser Industries, Inc. ........ 6,557,500
------------
PAPER AND FOREST PRODUCTS -- 4.1%
73,880 Potlatch Corporation............. 3,717,088
227,600 Sonoco Products Company.......... 7,724,175
120,000 Union Camp Corporation........... 7,402,500
67,900 Westvaco Corporation............. 2,448,644
34,300 Weyerhaeuser Company............. 2,036,563
------------
23,328,970
------------
PRINTING AND PUBLISHING -- 0.5%
81,600 Donnelley (R.R.) & Sons
Company........................ 2,912,100
------------
RESTAURANTS AND LODGING -- 1.6%
89,900 McDonald's Corporation........... 4,281,487
217,600 Wendy's International Inc. ...... 4,624,000
------------
8,905,487
------------
RETAIL -- GENERAL -- 2.9%
133,200 Dillard Department Stores, Inc.,
Class A........................ 5,835,825
102,000 May Department Stores Company.... 5,559,000
85,000 Penney (J.C.) Company, Inc. ..... 4,951,250
------------
16,346,075
------------
RETAIL -- SPECIALTY -- 2.0%
219,100 Heilig-Meyers Company............ 3,368,662
201,300 Lowe's Companies Inc. ........... 7,825,538
------------
11,194,200
------------
SERVICES -- 0.9%
204,900 Ogden Corporation................ 4,840,763
------------
STEEL -- 1.2%
130,600 Nucor Corporation................ 6,880,988
------------
TOBACCO -- 0.5%
90,000 UST Inc. ........................ 2,750,625
------------
TOYS -- 0.3%
67,400 Hasbro Inc....................... 1,895,625
------------
TRANSPORTATION -- AIRLINES -- 0.5%
100,800 ASA Holdings, Inc. .............. 2,835,000
------------
TRANSPORTATION -- RAILROADS -- 2.0%
47,500 Burlington Northern Santa Fe..... 4,589,688
110,600 CSX Corporation.................. 6,470,100
------------
11,059,788
------------
UTILITIES -- NATURAL GAS -- 2.7%
125,900 Consolidated Natural Gas
Company........................ 7,325,806
254,300 Equitable Resources Inc. ........ 8,010,450
------------
15,336,256
------------
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
UTILITIES -- TELEPHONE -- 7.1%
83,400 Ameritech Corporation............ $ 5,546,100
69,198 Bell Atlantic Corporation........ 5,566,114
117,100 Century Telephone Enterprises,
Inc. .......................... 5,152,400
409,200 Frontier Corporation............. 9,411,600
160,119 GTE Corporation.................. 7,265,400
63,300 SBC Communications Inc. ......... 3,885,037
81,200 U.S. West Inc. .................. 3,126,200
------------
39,952,851
------------
TOTAL COMMON STOCKS
(Cost $385,292,553)............ 473,714,914
============
CONVERTIBLE PREFERRED STOCKS -- 2.7%
BANKS -- 0.9%
176,000 National Australia Bank, Conv.,
7.8750%........................ 5,170,000
------------
FOOD PRODUCERS -- 1.0%
90,700 Chiquita Brands International
Inc., Series B, Conv.,
$3.750......................... 5,578,050
------------
HEALTH CARE -- 0.7%
50,590 AETNA Inc., Class C, 6.25%....... 3,936,534
------------
METALS AND MINING -- 0.1%
12,100 Cyprus AMAX Minerals Company,
Series A, Conv................. 660,963
------------
TOTAL CONVERTIBLE PREFERRED
STOCKS
(Cost $12,907,341)............. 15,345,547
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
CONVERTIBLE BONDS AND NOTES -- 7.1%
BUILDING -- 0.2%
$1,000,000 MASCO Corporation, Conv.,
5.25% 02/15/12................... 1,120,000
------------
HEALTH CARE -- 0.5%
3,100,000 Ivax Corporation, Conv. Note,
6.500% 11/15/11.................. 2,790,000
------------
INSURANCE -- 0.8%
4,200,000 NAC Re Corporation, Conv. Sub.
Note,
5.250% 12/15/02.................. 4,567,500
------------
METALS AND MINING -- 1.1%
7,000,000 Barrick Gold (Trizac Hahn Corp.),
3.25% 12/10/18................... 6,177,500
------------
OIL -- 0.5%
2,000,000 Pennzoil Company, Conv.,
4.75% 10/01/03................... 2,910,000
------------
RESTAURANT -- 0.6%
4,000,000 Boston Chicken Inc., Conv.,
7.75% 05/01/04................... 3,620,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 9
NATIONS FUNDS
Nations Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
CONVERTIBLE BONDS AND NOTES -- (CONTINUED)
RETAIL -- SPECIALTY -- 1.4%
$1,800,000 Home Depot Inc., Conv. Sub. Note,
3.250% 10/01/01.................. $ 2,200,500
6,800,000 Saks Holdings,
5.50% 09/15/06................... 5,712,000
------------
7,912,500
------------
TECHNOLOGY -- 2.0%
Unisys Corporation, Conv. Sub.
Note:
2,000,000 8.250% 08/01/00.................... 3,010,000
3,500,000 8.250% 03/15/06.................... 8,067,500
------------
11,077,500
------------
TOTAL CONVERTIBLE BONDS AND NOTES
(Cost $32,232,374)............... 40,175,000
============
U.S. TREASURY SECURITIES -- 1.7%
U.S. TREASURY BONDS -- 1.7%
4,550,000 5.625% 02/15/06.................... 4,387,884
2,800,000 6.500% 10/15/06.................... 2,859,948
2,500,000 6.625% 02/15/27.................... 2,559,775
------------
TOTAL U.S. TREASURY SECURITIES
(Cost $9,316,765)................ 9,807,607
============
TOTAL SECURITIES
(Cost $439,749,033).............. 539,043,068
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 5.0%
(Cost $28,221,000)
$28,221,000 Agreement with Smith Barney,
5.480% dated 09/30/97, to be
repurchased at $28,225,296 on
10/01/97, collateralized by:
$12,017,166 U.S. Treasury Note,
7.375% due 11/15/97; $3,278,413
U.S. Treasury Bond, 11.250% due
02/15/15; $8,447,765 Resolution
Funding Corp. Strips, Principal
Only, due 04/15/05; $6,058,472
GNMA, 6.000% 05/20/27.......... $ 28,221,000
============
TOTAL INVESTMENTS
(Cost $467,970,033*).................. 100.3% 567,264,068
OTHER ASSETS AND LIABILITIES (NET)...... (0.3) (1,535,215)
----- ------------
NET ASSETS.............................. 100.0% $565,728,853
===== ============
</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
to qualified institutional buyers.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 10
NATIONS FUNDS
Nations Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.2%
AEROSPACE AND DEFENSE -- 4.1%
392,675 Lockheed Martin Corporation...... $ 41,868,972
648,034 Raytheon Company................. 38,315,010
--------------
80,183,982
--------------
APPAREL AND TEXTILES -- 1.2%
427,925 Liz Claiborne Inc. .............. 23,509,130
--------------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 2.1%
508,798 Ford Motor Company............... 23,023,109
584,500 ITT Industries Inc. ............. 19,398,094
--------------
42,421,203
--------------
AUTOMOBILE PARTS MANUFACTURERS -- 1.8%
901,925 Cooper Tire & Rubber Company..... 23,957,383
306,800 Echlin Inc. ..................... 10,757,175
--------------
34,714,558
--------------
BANKS -- 7.6%
544,250 Banc One Corporation............. 30,375,953
129,400 BankBoston Corporation........... 11,443,813
499,200 Bank of New York Inc. ........... 23,961,600
339,602 Chase Manhattan Corporation...... 40,073,036
84,750 Citicorp......................... 11,351,203
577,000 Mellon Bank Corporation.......... 31,590,750
--------------
148,796,355
--------------
BEVERAGES -- 1.4%
679,400 PepsiCo Inc. .................... 27,558,162
--------------
CHEMICALS -- BASIC -- 0.8%
397,500 Nalco Chemical Company........... 15,924,844
--------------
CHEMICALS -- SPECIALTY -- 0.7%
412,000 Morton International Inc.,
Industries..................... 14,626,000
--------------
COAL, GAS AND PIPELINE -- 2.1%
658,250 Coastal Corporation.............. 40,317,813
--------------
COMPUTER RELATED -- 7.1%
935,875 Compaq Computer Corporation+..... 69,956,656
90,600 International Business Machines
Corporation.................... 9,597,937
290,150 Hewlett-Packard Company.......... 20,183,559
861,650 Sun Microsystems Inc.+........... 40,335,991
--------------
140,074,143
--------------
CONSTRUCTION -- 0.8%
290,200 Fluor Corporation................ 15,561,975
--------------
CONTAINERS -- 1.5%
618,900 Crown Cork & Seal Inc. .......... 28,546,763
--------------
DIVERSIFIED -- 2.9%
633,600 AlliedSignal Inc. ............... 26,928,000
636,450 Tenneco Inc. .................... 30,470,044
--------------
57,398,044
--------------
DRUGS -- 4.9%
708,650 Bristol-Myers Squibb Company..... 58,640,787
746,000 Schering-Plough Corporation...... 38,419,000
--------------
97,059,787
--------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRIC POWER -- 3.2%
370,000 Baltimore Gas & Electric
Company........................ $ 10,267,500
293,936 CINergy Corporation.............. 9,828,485
555,000 DPL Inc. ........................ 13,597,500
205,000 GPU, Inc. ....................... 7,354,375
826,750 New York State Electric & Gas
Company........................ 22,218,906
--------------
63,266,766
--------------
ELECTRONICS -- 3.9%
789,500 Harris Corporation............... 36,119,625
631,100 Rockwell International
Corporation.................... 39,719,856
--------------
75,839,481
--------------
FINANCIAL SERVICES -- 1.2%
487,800 Paine Webber Group, Inc. ........ 22,713,187
--------------
FOOTWEAR & RELATED APPAREL -- 0.4%
222,800 Nine West Group, Inc.+........... 8,758,825
--------------
FOOD PRODUCERS -- 2.3%
605,350 Nabisco Holdings Corporation,
Class A........................ 25,765,209
376,400 Quaker Oats Company.............. 18,961,150
--------------
44,726,359
--------------
INDUSTRIAL CONGLOMERATES -- 0.3%
154,800 Premark International Inc. ...... 4,953,600
--------------
INSURANCE -- 7.5%
271,150 CIGNA Corporation................ 50,501,688
167,833 General Re Corporation........... 33,314,850
352,200 Hartford Financial Services Group
Inc. .......................... 30,311,213
474,700 Lincoln National Corporation
Ltd. .......................... 33,050,987
--------------
147,178,738
--------------
MACHINERY AND EQUIPMENT -- 1.9%
383,763 Cooper Industries Inc. .......... 20,747,187
363,450 Foster Wheeler Corporation....... 15,969,084
--------------
36,716,271
--------------
MEDICAL PRODUCTS AND SUPPLIES -- 0.3%
122,000 Baxter International Inc......... 6,374,500
--------------
MEDICAL SERVICES -- 5.4%
1,801,175 Beverly Enterprises+............. 31,295,416
444,000 Humana Inc.+..................... 10,572,750
1,155,825 Tenet Healthcare Corporation+.... 33,663,403
523,100 Wellpoint Health Networks+....... 30,307,106
--------------
105,838,675
--------------
METALS AND MINING -- 2.0%
582,400 ASARCO Inc. ..................... 18,636,800
487,650 Cyprus Amax Minerals Company..... 11,703,600
139,800 Reynolds Metals Company.......... 9,899,587
--------------
40,239,987
--------------
OFFICE EQUIPMENT -- 2.9%
680,250 Xerox Corporation................ 57,268,547
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 11
NATIONS FUNDS
Nations Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
OIL -- INTERNATIONAL -- 8.9%
574,000 British Petroleum Company Plc,
ADR............................ $ 52,126,375
268,633 Chevron Corporation.............. 22,346,908
393,050 Exxon Corporation................ 25,179,766
597,400 Mobil Corporation................ 44,207,600
670,500 Noble Affiliates, Inc. .......... 30,004,875
--------------
173,865,524
--------------
OIL SERVICES -- 1.0%
581,600 Valero Energy Corporation........ 19,083,750
--------------
PRINTING AND PUBLISHING -- 1.6%
1,074,200 Dun & Bradstreet Corporation..... 30,480,425
--------------
RETAIL -- GENERAL -- 3.3%
578,000 Dillard Department Stores Inc.,
Class A........................ 25,323,625
421,700 Federated Department Stores
Inc.+.......................... 18,185,813
400,340 May Department Stores Company.... 21,818,530
--------------
65,327,968
--------------
SEMICONDUCTORS -- 3.1%
209,590 Intel Corporation................ 19,347,777
1,005,350 National Semiconductor
Corporation+................... 41,219,350
--------------
60,567,127
--------------
TOBACCO -- 1.9%
712,062 Philip Morris Companies Inc. .... 29,595,077
281,900 UST, Inc......................... 8,615,569
--------------
38,210,646
--------------
TRANSPORTATION -- AIRLINES -- 1.6%
336,500 Delta Air Lines, Inc. ........... 31,694,094
--------------
UTILITIES -- NATURAL GAS -- 3.0%
298,800 Columbia Gas System, Inc. ....... 20,916,000
174,750 Consolidated Natural Gas
Company........................ 10,168,266
598,450 Williams Companies Inc. ......... 28,014,941
--------------
59,099,207
--------------
UTILITIES -- TELEPHONE -- 4.5%
632,100 BellSouth Corporation............ 29,234,625
620,395 GTE Corporation.................. 28,150,423
273,000 MCI Communications Corporation... 8,019,375
370,675 SBC Communications Inc........... 22,750,178
--------------
88,154,601
--------------
TOTAL COMMON STOCKS
(Cost $1,400,013,046).......... 1,947,051,037
==============
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ---------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.5%
(Cost $9,525,000)
$ 9,525,000 Agreement with Smith Barney,
5.480% dated 09/30/97, to be
repurchased at $9,526,450 on
10/30/97, collateralized by:
$4,055,968 U.S. Treasury Note,
7.375% due 11/15/97; $1,106,513
U.S. Treasury Bond, 11.250% due
02/15/15; $2,851,247 Resolution
Funding Corp. Strips, Principal
Only, due 04/15/05; $2,044,822
GNMA, 6.000% due 05/20/27...... $ 9,525,000
==============
TOTAL INVESTMENTS
(Cost $1,409,538,046*).............. 99.7% 1,956,576,037
OTHER ASSETS AND LIABILITIES (NET).... 0.3 6,716,066
----- --------------
NET ASSETS............................ 100.0% $1,963,292,103
===== ==============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 12
NATIONS FUNDS
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.9%
AEROSPACE AND DEFENSE -- 1.8%
99,000 Boeing Company...................... $ 5,389,313
4,500 EG&G Inc............................ 93,094
6,000 General Dynamics Corporation........ 522,750
19,800 Lockheed Martin Corporation......... 2,111,175
6,400 Northrop Grumman Corporation........ 776,800
24,600 Raytheon Company.................... 1,454,475
13,200 TRW Inc............................. 724,350
24,700 United Technologies Corporation..... 2,000,700
------------
13,072,657
------------
APPAREL AND TEXTILES -- 0.5%
7,900 Fruit of the Loom Inc., Class A+.... 222,188
8,100 Liz Claiborne Inc................... 444,994
5,000 National Service Industries Inc..... 219,688
28,900 Nike Inc., Class B.................. 1,531,700
6,400 Reebok International, Ltd........... 311,600
3,800 Russell Corporation................. 111,863
1,600 Springs Industries Inc.............. 84,000
4,700 Stride Rite Corporation............. 63,744
6,200 V.F. Corporation.................... 574,275
------------
3,564,052
------------
AUTOMOBILE AND TRUCK MANUFACTURERS -- 1.9%
70,700 Chrysler Corporation................ 2,602,644
117,700 Ford Motor Company.................. 5,325,925
72,800 General Motors Corporation.......... 4,873,050
11,800 ITT Industries Inc.................. 391,613
7,500 Navistar International
Corporation+...................... 207,188
7,700 PACCAR, Inc......................... 431,200
------------
13,831,620
------------
AUTOMOBILE PARTS
MANUFACTURERS -- 0.6%
13,700 AutoZone, Inc.+..................... 411,000
5,100 BF Goodrich Company................. 230,775
8,700 Cooper Tire & Rubber Company........ 231,094
10,500 Dana Corporation.................... 518,438
8,300 Eaton Corporation................... 766,713
5,900 Echlin Inc.......................... 206,869
18,300 Genuine Parts Company............... 563,869
15,300 Goodyear Tire & Rubber Company...... 1,051,875
6,000 Snap-On Inc......................... 276,375
------------
4,257,008
------------
BANKS -- 8.6%
56,500 Banc One Corporation................ 3,153,406
71,300 BankAmerica Corporation............. 5,227,181
15,300 BankBoston Corporation.............. 1,353,094
38,500 Bank of New York Inc................ 1,848,000
10,100 Bankers Trust N.Y. Corporation...... 1,237,250
19,600 Barnett Banks Inc................... 1,386,700
43,300 Chase Manhattan Corporation......... 5,109,400
47,000 Citicorp............................ 6,295,062
10,400 Comerica Inc........................ 820,950
20,900 CoreStates Financial Corporation.... 1,383,319
15,800 Fifth Third Bancorp................. 1,032,925
29,400 First Chicago Corporation NBD....... 2,212,350
58,100 First Union Corporation............. 2,908,631
26,200 Fleet Financial Group Inc........... 1,717,738
15,200 Huntington Bancshares............... 548,150
21,900 KeyCorp (New)....................... 1,393,388
25,400 Mellon Bank Corporation............. 1,390,650
18,800 Morgan (J.P.) & Company Inc......... 2,136,150
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
BANKS -- (CONTINUED)
58,900 Morgan Stanley, Dean Witter,
Discover and Company.............. $ 3,184,281
22,100 National City Corporation........... 1,360,531
73,500 NationsBank Corporation............. 4,547,813
37,400 Norwest Corporation................. 2,290,750
33,200 PNC Bank Corporation................ 1,620,575
5,700 Republic New York Corporation....... 647,663
16,500 State Street Corporation............ 1,005,469
22,700 SunTrust Banks Inc.................. 1,542,181
24,400 U.S. Bancorp........................ 2,354,600
16,800 Wachovia Corporation................ 1,209,600
9,100 Wells Fargo & Company............... 2,502,500
------------
63,420,307
------------
BEVERAGES -- 3.6%
51,300 Anheuser-Busch Companies, Inc....... 2,314,913
6,500 Brown-Forman Corporation, Class B... 322,969
248,100 Coca-Cola Company................... 15,118,593
3,900 Coors (Adolph) Company, Class B..... 147,713
155,800 PepsiCo Inc......................... 6,319,638
37,700 Seagram Company, Ltd................ 1,328,925
------------
25,552,751
------------
BIO SPECIALTY
PHARMACEUTICALS -- 0.2%
26,700 Amgen Inc.+......................... 1,279,931
------------
CHEMICALS -- BASIC -- 2.5%
10,500 Air Products & Chemicals Inc........ 870,844
24,700 Dow Chemical Company................ 2,239,981
112,800 du Pont (E.I.) de Nemours &
Company........................... 6,944,250
8,500 Eastman Chemical Company............ 527,000
6,200 Ecolab Inc.......................... 301,088
3,600 FMC Corporation (New)+.............. 319,500
20,200 Freeport McMoran Copper and Gold,
Class B........................... 582,013
8,200 Hercules, Inc....................... 407,950
8,000 Mallinckrodt Group Inc.............. 288,000
58,600 Monsanto Company.................... 2,285,400
6,300 Nalco Chemical Company.............. 252,394
19,100 PPG Industries, Inc................. 1,197,331
14,600 Praxair Inc......................... 747,338
6,400 Rohm & Haas Company................. 614,000
13,600 Union Carbide Corporation........... 662,150
------------
18,239,239
------------
CHEMICALS -- SPECIALTY -- 0.3%
8,900 Avery Dennison Corporation.......... 356,000
13,000 Engelhard Corporation............... 280,313
8,300 Grace (W.R.) & Company.............. 611,088
6,000 Great Lakes Chemical Corporation.... 295,875
13,300 Morton International Inc.,
Industries........................ 472,150
9,800 Sigma-Aldrich Corporation........... 322,788
11,920 Solutia Inc.+....................... 238,400
------------
2,576,614
------------
COAL, GAS AND PIPELINE -- 0.3%
10,700 Coastal Corporation................. 655,375
32,100 Enron Corporation................... 1,235,850
------------
1,891,225
------------
COMMUNICATION EQUIPMENT -- 0.0%#
10,500 Andrew Corporation+................. 274,969
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 13
NATIONS FUNDS
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
COMPUTER RELATED -- 5.4%
12,200 Apple Computer Inc.................. $ 264,588
6,000 Ceridian Corporation+............... 222,000
66,500 cisco Systems, Inc.+................ 4,858,656
75,600 Compaq Computer Corporation+........ 5,651,100
6,500 Data General Corporation+........... 173,063
32,900 Dell Computer Corporation+.......... 3,187,188
15,100 Digital Equipment Corporation+...... 654,019
22,800 EMC Corporation+.................... 1,330,950
102,400 Hewlett-Packard Company............. 7,123,200
13,000 Honeywell, Inc...................... 873,438
99,500 International Business Machines
Corporation....................... 10,540,781
24,800 Seagate Technology+................. 895,900
15,800 Silicon Graphics Inc.+.............. 414,750
36,300 Sun Microsystems Inc.+.............. 1,699,294
33,500 3Com Corporation+................... 1,716,875
16,600 Unisys Corporation+................. 254,188
------------
39,859,990
------------
COMPUTER SERVICES -- 0.6%
29,700 Automatic Data Processing Inc....... 1,485,000
36,900 Computer Associates International
Inc............................... 2,649,881
7,900 Computer Sciences Corporation+...... 558,925
------------
4,693,806
------------
COMPUTER SOFTWARE -- 3.3%
7,300 Adobe Systems, Inc.................. 367,738
4,900 Autodesk, Inc....................... 222,338
18,300 Bay Networks Inc.+.................. 706,838
15,100 Cabletron Systems Inc.+............. 483,200
44,600 First Data Corporation.............. 1,675,287
120,300 Microsoft Corporation+.............. 15,917,193
36,300 Novell Inc.+........................ 325,566
99,200 Oracle Systems Corporation+......... 3,614,600
12,900 Parametric Technology Company+...... 569,213
2,200 Shared Medical Systems
Corporation....................... 116,325
------------
23,998,298
------------
CONSTRUCTION -- 0.4%
3,500 Armstrong World Industries, Inc..... 234,719
6,700 Case Corporation.................... 446,388
2,800 Centex Corporation.................. 163,450
4,200 Crane Company....................... 172,725
8,800 Fluor Corporation................... 471,900
3,500 Kaufman & Broad Home Corporation.... 75,906
15,600 Masco Corporation................... 714,675
4,800 Owens-Corning Fiberglass
Corporation....................... 175,200
2,100 Pulte Corporation................... 80,325
17,800 Sherwin-Williams Company............ 523,988
------------
3,059,276
------------
CONTAINERS -- 0.2%
2,800 Ball Corporation.................... 97,475
5,100 Bemis Inc........................... 228,225
12,600 Crown Cork & Seal Inc............... 581,175
14,200 Owens-Illinois, Inc.+............... 481,913
6,200 Tupperware Corporation.............. 174,375
------------
1,563,163
------------
COSMETICS AND TOILETRY -- 2.5%
4,600 Alberto-Culver Company, Class B..... 140,013
13,300 Avon Products Inc................... 824,600
10,700 Clorox Company...................... 793,138
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
COSMETICS AND
TOILETRY -- (CONTINUED)
29,300 Colgate-Palmolive Company........... $ 2,041,844
55,700 Gillette Company.................... 4,807,606
11,200 International Flavors & Fragrances
Inc............................... 548,800
137,600 Procter & Gamble Company............ 9,503,000
------------
18,659,001
------------
DIVERSIFIED -- 1.7%
2,900 Aeroquip-Vickers Inc................ 142,100
57,000 AlliedSignal Inc.................... 2,422,500
16,600 Cognizant Corporation............... 676,450
22,700 Corning Inc......................... 1,072,575
1,700 Eastern Enterprises................. 63,431
16,900 Fortune Brands, Inc................. 569,319
15,700 Frontier Corporation................ 361,100
12,000 Loews Corporation................... 1,355,250
42,200 Minnesota Mining & Manufacturing
Company........................... 3,903,500
17,500 Tenneco Inc......................... 837,813
17,300 Textron, Inc........................ 1,124,500
10,700 Whitman Corporation................. 291,575
------------
12,820,113
------------
DRUGS -- 6.6%
7,900 ALZA Corporation+................... 229,100
65,200 American Home Products
Corporation....................... 4,759,600
101,200 Bristol-Myers Squibb Company........ 8,374,300
54,700 Lilly (Eli) & Company............... 6,587,931
121,300 Merck & Company Inc................. 12,122,419
127,800 Pfizer, Inc......................... 7,675,988
50,900 Pharmacia & Upjohn Inc.............. 1,857,850
74,600 Schering-Plough Corporation......... 3,841,900
26,800 Warner-Lambert Company.............. 3,616,325
------------
49,065,413
------------
ELECTRIC POWER -- 2.4%
18,400 American Electric Power Inc......... 837,200
14,400 Baltimore Gas & Electric Company.... 399,600
15,400 Carolina Power & Light Company...... 553,438
20,000 Central & South West Corporation.... 443,750
15,400 CINergy Corporation................. 514,938
24,200 Consolidated Edison Company New York
Inc............................... 822,800
17,000 Dominion Resources Inc.............. 643,875
14,800 DTE Energy Company.................. 450,475
35,600 Duke Power Company.................. 1,759,975
44,500 Edison International................ 1,123,625
23,900 Entergy Corporation, New............ 622,894
18,000 FPL Group Inc....................... 922,500
12,100 GPU, Inc............................ 434,088
35,700 Houston Industries Inc.............. 776,475
15,000 Niagara Mohawk Power Corporation+... 143,438
6,500 Northern States Power Corporation... 323,375
15,500 Ohio Edison Company................. 363,281
29,000 PacifiCorp.......................... 648,875
22,800 PECO Energy Company................. 534,375
43,000 PG&E Corporation.................... 997,063
16,100 PP&L Resources Inc.................. 352,187
24,900 Public Service Enterprise Group..... 641,175
66,900 Southern Company.................... 1,509,431
25,100 Texas Utilities Company............. 903,600
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 14
NATIONS FUNDS
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRIC POWER -- (CONTINUED)
22,100 Unicom Corporation.................. $ 516,588
10,000 Union Electric Company.............. 384,375
------------
17,623,396
------------
ELECTRICAL EQUIPMENT -- 3.8%
44,900 Emerson Electric Company............ 2,587,363
329,500 General Electric Company............ 22,426,593
4,800 Grainger (W.W.) Inc................. 427,200
4,500 Raychem Corporation................. 380,250
7,200 Scientific-Atlanta Inc.............. 162,900
5,000 Thomas & Betts Corporation.......... 273,125
63,700 Westinghouse Electric Corporation... 1,723,881
------------
27,981,312
------------
ELECTRONICS -- 1.5%
21,900 AMP Inc............................. 1,173,019
17,700 Applied Materials Inc.+............. 1,685,925
8,000 Harris Corporation.................. 366,000
8,100 KLA-Tencor Corporation.............. 547,256
12,500 LSI Logic Corporation+.............. 401,563
59,000 Motorola, Inc....................... 4,240,625
13,100 National Semiconductor
Corporation+...................... 537,100
4,300 Perkin-Elmer Corporation............ 314,169
22,400 Rockwell International
Corporation....................... 1,409,800
3,700 Tektronix Inc....................... 249,519
------------
10,924,976
------------
ENVIRONMENTAL -- 0.5%
21,300 Browning-Ferris Industries Inc...... 810,731
7,700 Johnson Controls Inc................ 381,631
28,900 Laidlaw Inc., Class B............... 431,694
4,600 Millipore Corporation............... 225,975
5,600 Safety-Kleen Corporation............ 134,050
25,000 Tyco International Ltd.............. 2,051,563
------------
4,035,644
------------
EXPLORATION AND DRILLING -- 0.1%
12,800 Burlington Resources Inc............ 656,800
2,200 Helmerich & Payne Inc............... 176,000
5,200 McDermott International Inc......... 189,800
------------
1,022,600
------------
FINANCIAL SERVICES -- 3.7%
47,500 American Express Company............ 3,889,063
24,000 American General Corporation........ 1,245,000
5,400 Beneficial Corporation.............. 411,413
26,300 Charles Schwab Corporation.......... 940,225
7,400 Countrywide Credit Industries,
Inc............................... 269,638
15,600 Equifax Inc......................... 490,425
72,100 Freddie Mac......................... 2,541,525
109,100 Fannie Mae.......................... 5,127,700
11,000 Green Tree Financial Corporation.... 517,000
10,600 Household International Inc......... 1,199,788
17,000 Marsh & McLennan Companies Inc...... 1,302,625
33,000 MBNA Corporation.................... 1,336,500
35,500 Merrill Lynch & Company Inc......... 2,633,626
10,600 Salomon Inc......................... 796,988
6,600 Transamerica Corporation............ 656,700
63,700 Travelers Group Inc................. 4,347,525
------------
27,705,741
------------
FOOD PRODUCERS -- 2.8%
58,900 Archer-Daniels-Midland Company...... 1,409,919
47,100 Campbell Soup Company............... 2,307,900
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
FOOD PRODUCERS -- (CONTINUED)
24,900 ConAgra Inc......................... $ 1,643,400
14,500 CPC International Inc............... 1,343,063
15,700 General Mills Inc................... 1,082,319
35,900 Heinz (H.J.) Company................ 1,658,131
13,600 Hershey Foods Corporation........... 768,400
41,500 Kellogg Company..................... 1,748,188
8,200 Pioneer Hi-Bred International....... 746,200
13,400 Quaker Oats Company................. 675,025
10,600 Ralston Purina Group................ 938,100
48,300 Sara Lee Corporation................ 2,487,450
15,600 Unilever N.V., ADR.................. 3,316,950
11,900 Wrigley (Wm.) Jr. Company........... 896,219
------------
21,021,264
------------
FOOD RETAILERS -- 0.5%
22,500 Albertson's, Inc.................... 784,688
29,100 American Stores Company............. 709,313
3,400 Fleming Companies Inc............... 62,263
5,900 Giant Food Inc., Class A............ 192,119
3,800 Great Atlantic & Pacific Tea Inc.... 120,650
23,300 Kroger Company+..................... 703,369
6,600 SuperValu Inc....................... 259,050
18,300 Sysco Corporation................... 675,956
15,200 Winn-Dixie Stores Inc............... 538,650
------------
4,046,058
------------
FURNITURE AND APPLIANCES -- 0.4%
9,100 Black & Decker Corporation.......... 338,975
10,700 Maytag Corporation.................. 365,138
15,000 Newell Company...................... 600,000
15,800 Rubbermaid, Inc..................... 403,888
9,200 Stanley Works....................... 395,600
7,900 Whirlpool Corporation............... 523,869
------------
2,627,470
------------
INSURANCE -- 3.8%
14,901 Aetna Life & Casualty Company....... 1,213,500
45,800 Allstate Corporation................ 3,681,175
71,300 American International Group,
Inc............................... 7,357,269
15,800 Aon Corporation..................... 835,425
18,300 Chubb Corporation................... 1,300,444
7,700 CIGNA Corporation................... 1,434,125
17,700 Conseco Inc......................... 863,981
8,300 General Re Corporation.............. 1,647,550
11,800 Hartford Financial Services Group
Inc............................... 1,015,538
7,000 Jefferson-Pilot Corporation......... 553,000
10,500 Lincoln National Corporation Ltd.... 731,063
4,300 MBIA, Inc........................... 539,381
11,800 MGIC Investment Corporation......... 676,288
7,500 Progressive Corporation............. 803,438
10,000 Providian Corporation............... 396,875
12,500 SAFECO Corporation.................. 662,500
8,200 St. Paul Companies Inc.............. 668,813
20,100 SunAmerica, Inc..................... 787,669
13,500 Torchmark Corporation............... 529,875
12,200 UNUM Corporation.................... 556,625
10,100 USF&G Corporation................... 231,669
25,500 Washington Mutual, Inc.............. 1,778,625
------------
28,264,828
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 15
NATIONS FUNDS
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MACHINERY AND EQUIPMENT -- 1.3%
2,700 Briggs & Stratton Corporation....... $ 133,481
39,300 Caterpillar Inc..................... 2,119,744
3,500 Cincinnati Milacron Inc............. 94,063
13,500 Cooper Industries Inc............... 729,844
4,800 Cummings Engine Inc................. 374,700
26,500 Deere & Company..................... 1,424,375
11,900 Dover Corporation................... 807,713
3,600 Foster Wheeler Corporation.......... 158,175
4,400 General Signal Corporation.......... 190,300
3,700 Harnischfeger Industries Inc........ 158,175
23,400 Illinois Tool Works Inc............. 1,170,000
15,900 Ingersoll-Rand Company.............. 684,694
700 NACCO Industries Inc., Class A...... 82,294
11,700 Pall Corporation.................... 252,281
12,200 Parker-Hannifin Corporation......... 549,000
14,400 Thermo Electron Corporation+........ 576,000
9,800 Timken Company...................... 392,613
------------
9,897,452
------------
MEDIA -- 0.9%
8,600 Clear Channel Communications,
Inc.+............................. 557,925
31,900 Comcast Corporation, Class A........ 821,425
51,500 Tele-Communications Inc., Class A... 1,055,750
56,700 Time Warner Inc..................... 3,072,431
57,200 U.S. West Media Group, Inc.+........ 1,276,275
------------
6,783,806
------------
MEDICAL PRODUCTS AND
SUPPLIES -- 2.9%
79,000 Abbott Laboratories................. 5,051,063
6,500 Allergan, Inc....................... 235,219
5,500 Bard (C.R.) Inc..................... 186,656
5,800 Bausch & Lomb Inc................... 234,900
27,900 Baxter International Inc............ 1,457,775
13,400 Becton, Dickinson & Company......... 641,525
11,100 Biomet, Inc......................... 266,400
17,000 Boston Scientific Corporation+...... 938,188
11,300 Cardinal Health, Inc................ 802,300
14,100 Guidant Corporation................. 789,600
133,800 Johnson & Johnson................... 7,710,225
46,800 Medtronic, Inc...................... 2,199,600
7,800 St. Jude Medical Inc.+.............. 273,488
10,400 United States Surgical
Corporation....................... 303,550
------------
21,090,489
------------
MEDICAL SERVICES -- 0.7%
9,800 Beverly Enterprises Inc.+........... 170,275
68,100 Columbia/HCA Healthcare
Corporation....................... 1,957,875
31,400 HEALTHSOUTH Corporation+............ 837,988
15,600 Humana Inc.+........................ 371,475
6,200 Manor Care Inc...................... 206,150
35,900 Tenet Healthcare Corporation+....... 1,045,588
18,000 United Healthcare Corporation....... 900,000
------------
5,489,351
------------
METALS AND MINING -- 0.9%
22,800 Alcan Aluminum Ltd.................. 792,300
18,000 Aluminum Company of America......... 1,476,000
4,100 ASARCO Inc.......................... 131,200
35,400 Barrick Gold Corporation, ADR....... 876,150
23,400 Battle Mountain Gold Company........ 168,188
9,900 Cyprus Amax Minerals Company........ 237,600
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
METALS AND MINING -- (CONTINUED)
11,900 Echo Bay Mines Ltd.................. $ 67,681
14,400 Homestake Mining Company............ 220,500
17,000 Inco Ltd............................ 426,063
15,800 Newmont Mining Corporation.......... 710,013
6,600 Phelps Dodge Corporation............ 512,325
24,300 Placer Dome Inc., ADR............... 464,738
6,200 Reynolds Metals Company............. 439,038
------------
6,521,796
------------
OFFICE EQUIPMENT -- 0.6%
11,800 Ikon Office Solutions............... 301,638
9,900 Moore Corporation Ltd............... 188,100
15,200 Pitney Bowes Inc.................... 1,264,450
33,500 Xerox Corporation................... 2,820,281
------------
4,574,469
------------
OIL -- DOMESTIC -- 2.0%
9,900 Amerada Hess Corporation............ 610,706
50,100 Amoco Corporation................... 4,828,388
7,300 Ashland Oil, Inc.................... 396,938
32,000 Atlantic Richfield Company.......... 2,734,000
4,800 Kerr-McGee Corporation.............. 330,300
3,500 Louisiana Land & Exploration
Company........................... 274,094
32,900 Occidental Petroleum Corporation.... 853,343
10,400 Oryx Energy Company+................ 264,550
4,300 Pennzoil Company.................... 342,656
26,800 Phillips Petroleum Company.......... 1,383,550
8,700 Sun Company, Inc.................... 381,169
24,700 Unocal Corporation.................. 1,068,275
31,800 USX-Marathon Group (New)............ 1,182,563
------------
14,650,532
------------
OIL -- INTERNATIONAL -- 5.9%
6,500 Anadarko Petroleum Corporation...... 466,781
8,100 Apache Corporation.................. 347,288
65,700 Chevron Corporation................. 5,465,419
249,400 Exxon Corporation................... 15,977,187
79,200 Mobil Corporation................... 5,860,800
216,200 Royal Dutch Petroleum Company, ADR.. 11,999,100
52,200 Texaco Inc.......................... 3,207,038
24,400 Union Pacific Resources Group
Inc............................... 638,975
------------
43,962,588
------------
OIL SERVICES -- 1.0%
14,300 Baker Hughes Inc.................... 625,625
17,000 Dresser Industries, Inc............. 731,000
25,900 Halliburton Company................. 1,346,800
8,500 Rowan Companies Inc.+............... 302,813
48,900 Schlumberger Ltd.................... 4,116,769
5,200 Western Atlas, Inc.+................ 457,600
------------
7,580,607
------------
PAPER AND FOREST PRODUCTS -- 1.5%
5,200 Boise Cascade Corporation........... 218,725
10,100 Champion International
Corporation....................... 615,469
18,700 Fort James Corporation.............. 856,694
9,600 Georgia-Pacific Corporation......... 1,002,000
30,000 International Paper Company......... 1,651,875
56,700 Kimberly-Clark Corporation.......... 2,774,756
11,100 Louisiana Pacific Corporation....... 277,500
5,400 Mead Corporation.................... 390,150
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 16
NATIONS FUNDS
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
PAPER AND FOREST PRODUCTS -- (CONTINUED)
2,600 Potlatch Corporation................ $ 130,813
8,900 Stone Container Corporation......... 138,506
5,500 Temple-Inland Inc................... 352,000
6,700 Union Camp Corporation.............. 413,306
10,400 Westvaco Corporation................ 375,050
20,200 Weyerhaeuser Company................ 1,199,375
11,000 Willamette Industries Inc........... 420,750
------------
10,816,969
------------
PHOTO AND OPTICAL -- 0.3%
34,200 Eastman Kodak Company............... 2,220,863
4,400 Polaroid Corporation................ 225,225
------------
2,446,088
------------
PRINTING AND PUBLISHING -- 1.0%
7,800 American Greetings Corporation,
Class A........................... 287,625
8,300 Deluxe Corporation.................. 278,569
12,600 Donnelley (R.R.) & Sons Company..... 449,663
10,300 Dow Jones & Company Inc............. 481,525
18,100 Dun & Bradstreet Corporation........ 513,588
14,300 Gannett Company, Inc................ 1,543,506
8,000 Harcourt General Inc................ 396,500
3,400 Harland (John H.) Company........... 78,413
4,100 Jostens Inc......................... 111,213
9,300 Knight-Ridder Inc................... 508,013
10,000 McGraw-Hill Companies, Inc.......... 676,875
4,100 Meredith Corporation................ 135,813
10,000 New York Times Company, Class A..... 525,000
10,300 Times Mirror Company, Class A....... 565,856
12,700 Tribune Company..................... 677,069
------------
7,229,228
------------
PROFESSIONAL SERVICES -- 0.2%
9,900 Block (H&R) Inc..................... 382,388
11,800 Interpublic Group Companies Inc..... 605,488
23,800 Service Corporation International... 766,063
------------
1,753,939
------------
RECREATION -- 1.3%
10,200 Brunswick Corporation............... 359,550
68,000 Disney (Walt) Company............... 5,482,500
4,100 Fleetwood Enterprises Inc........... 137,606
10,300 Harrah's Entertainment Inc.+........ 231,106
13,200 Hasbro Inc.......................... 371,207
5,500 King World Productions Inc.+........ 237,875
28,000 Mattel, Inc......................... 927,500
16,400 Mirage Resorts, Inc.+............... 494,050
36,300 Viacom Inc., Class B+............... 1,147,988
------------
9,389,382
------------
RESTAURANTS AND LODGING -- 1.0%
15,700 Darden Restaurants Inc.............. 181,531
15,200 HFS Inc.+........................... 1,131,450
25,400 Hilton Hotels Corporation........... 855,663
12,100 ITT Corporation..................... 819,775
12,000 Marriot International Inc........... 852,750
70,400 McDonald's Corporation.............. 3,352,800
11,900 Wendy's International Inc........... 252,875
------------
7,446,844
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- DISCOUNT -- 1.6%
58,600 Kmart Stores Corporation............ $ 820,400
12,100 Rite Aid Corporation................ 670,794
15,700 TJX Companies Inc................... 479,831
28,500 Toys R Us Inc.+..................... 1,011,750
230,100 Wal-Mart Stores Inc................. 8,427,413
13,400 Woolworth Corporation+.............. 296,475
------------
11,706,663
------------
RETAIL -- GENERAL -- 1.2%
20,200 Costco Companies, Inc+.............. 760,025
22,200 Dayton Hudson Corporation........... 1,330,613
11,500 Dillard Department Stores Inc.,
Class A........................... 503,844
19,400 Federated Department Stores Inc.+... 836,625
25,300 May Department Stores Company....... 1,378,850
3,500 Mercantile Stores Inc............... 220,281
23,100 Penny (J.C.) Company Inc............ 1,345,575
39,200 Sears, Roebuck & Company............ 2,231,950
------------
8,607,763
------------
RETAIL -- SPECIALTY -- 1.6%
10,400 Charming Shoppes Inc.+.............. 64,025
10,300 Circuit City Stores Inc............. 415,219
37,200 CUC International Inc.+............. 1,153,200
16,300 CVS Corporation..................... 927,063
29,700 Gap Inc............................. 1,486,856
70,900 Home Depot Inc...................... 3,695,663
27,800 Limited Inc......................... 679,363
3,200 Longs Drug Stores Corporation....... 85,400
16,200 Lowe's Companies Inc................ 629,775
8,200 Nordstrom, Inc...................... 522,750
5,900 Pep Boys -- Manny, Moe & Jack....... 160,775
12,000 Tandy Corporation................... 403,500
49,400 Walgreen Company.................... 1,265,875
------------
11,489,464
------------
SAVINGS AND LOANS -- 0.2%
11,700 Ahmanson (H.F.) & Company........... 664,706
5,800 Golden West Financial Corporation... 520,550
------------
1,185,256
------------
SEMICONDUCTORS -- 2.6%
15,100 Advanced Micro Devices Inc.+........ 491,694
164,200 Intel Corporation................... 15,157,713
20,500 Micron Technology, Inc.............. 711,094
19,300 Texas Instruments Inc............... 2,607,913
------------
18,968,414
------------
STEEL -- 0.2%
17,100 Allegheny Teledyne Inc.............. 489,488
10,000 Armco Inc.+......................... 60,000
11,100 Bethlehem Steel Corporation+........ 114,469
4,500 Inland Steel Industries Inc......... 98,438
8,800 Nucor Corporation................... 463,650
8,300 USX-U.S. Steel Group................ 288,425
9,000 Worthington Industries Inc.......... 182,250
------------
1,696,720
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 17
NATIONS FUNDS
Nations Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
TELECOMMUNICATIONS -- 1.3%
11,300 DSC Communications Corporation+..... $ 304,394
64,200 Lucent Technologies................. 5,224,275
14,400 NextLevel Systems, Inc.............. 241,200
26,000 Northern Telecommunications, Ltd.... 2,702,375
17,900 Tellabs, Inc.+...................... 921,850
------------
9,394,094
------------
TOBACCO -- 1.4%
242,500 Philip Morris Companies Inc......... 10,078,906
18,500 UST Inc............................. 565,406
------------
10,644,312
------------
TRANSPORTATION -- AIRLINES -- 0.3%
9,100 AMR Corporation+.................... 1,007,256
7,600 Delta Air Lines, Inc................ 715,825
14,000 Southwest Airlines Company.......... 447,125
6,100 USAir Group Inc.+................... 252,388
------------
2,422,594
------------
TRANSPORTATION -- RAILROADS -- 0.8%
15,100 Burlington Northern Santa Fe Inc.... 1,459,038
22,400 CSX Corporation..................... 1,310,400
12,600 Norfolk Southern Corporation........ 1,300,950
24,500 Union Pacific Corporation........... 1,534,313
------------
5,604,701
------------
TRUCKING AND SHIPPING -- 0.2%
3,800 Caliber Systems Inc................. 206,150
11,700 Federal Express Corporation+........ 936,000
9,500 Ryder Systems Inc................... 341,406
------------
1,483,556
------------
UTILITIES -- NATURAL GAS -- 0.4%
5,200... Columbia Gas Systems Inc............ 364,000
9,700... Consolidated Natural Gas Company.... 564,419
4,900... NICOR Inc........................... 183,750
2,400... ONEOK Inc........................... 78,300
8,400... Pacific Enterprises................. 284,550
3,500... Peoples Energy Corporation.......... 131,906
8,900... Sonat, Inc.......................... 452,788
14,900.. Williams Companies Inc.............. 697,506
------------
2,757,219
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- TELEPHONE -- 5.9%
49,700 AirTouch Communications, Inc.+...... $ 1,761,244
18,900 ALLTEL Corporation.................. 652,050
55,500 Ameritech Corporation............... 3,690,750
161,400 AT&T Corporation.................... 7,152,037
79,800 Bell Atlantic Corporation........... 6,418,913
99,700 BellSouth Corporation............... 4,611,125
98,100 GTE Corporation..................... 4,451,288
69,200 MCI Communications Corporation...... 2,032,750
91,700 SBC Communications Inc.............. 5,628,068
42,400 Sprint Corporation.................. 2,120,000
47,500 U.S. West Inc....................... 1,828,750
88,100 WorldCom Inc.+...................... 3,116,538
------------
43,463,513
------------
WASTE DISPOSAL -- 0.2%
49,800 Waste Management Inc................ 1,739,888
------------
TOTAL COMMON STOCKS
(Cost $485,362,009)............... 737,730,419
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
-------
<S> <C> <C>
U.S. TREASURY BILL -- 0.0%#
(Cost $198,044)
$200,000 5.020%** 12/11/97.............. 198,044
============
TOTAL SECURITIES
(Cost $485,560,053)................... 737,928,463
============
TOTAL INVESTMENTS
(Cost $485,560,053*).................. 99.9% 737,928,463
OTHER ASSETS AND LIABILITIES (NET)...... 0.1 1,053,821
----- ------------
NET ASSETS.............................. 100.0% $738,982,284
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Rate represents annualized yield at date of purchase.
+ Non-income producing security.
# Amount represents less than 0.01%.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 18
NATIONS FUNDS
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.3%
BANKS -- 3.7%
110,702 Banc One Corporation............. $ 6,178,555
84,300 Chase Manhattan Corporation...... 9,947,400
104,850 Norwest Corporation.............. 6,422,063
------------
22,548,018
------------
BEVERAGES -- 2.1%
314,200 PepsiCo Inc...................... 12,744,738
------------
CHEMICALS -- SPECIALTY -- 2.6%
95,000 Morton International Inc.,
Industries..................... 3,372,500
65,050 Raychem Corporation.............. 5,496,725
203,000 Sigma-Aldrich Corporation........ 6,686,313
------------
15,555,538
------------
COMPUTER RELATED -- 7.1%
167,150 Cisco Systems, Inc.+............. 12,212,397
136,175 Hewlett-Packard Company.......... 9,472,673
120,500 International Business Machines
Corporation.................... 12,765,469
120,100 Sun Microsystems, Inc.+.......... 5,622,181
61,500 3Com Corporation................. 3,151,875
------------
43,224,595
------------
COMPUTER SERVICES -- 3.4%
101,100 Automatic Data Processing Inc.... 5,055,000
102,550 Computer Associates International
Inc............................ 7,364,372
235,300 Sterling Commerce, Inc. ......... 8,456,094
------------
20,875,466
------------
COMPUTER SOFTWARE -- 7.1%
81,950 BMC Software, Inc.+.............. 5,306,263
129,400 Cadence Design Systems, Inc.+.... 6,922,900
134,200 Compuware Corporation+........... 8,119,100
135,800 First Data Corporation........... 5,100,987
56,800 McAfee Associates, Inc.+......... 3,010,400
66,900 Microsoft Corporation+........... 8,851,706
131,100 Parametric Technology
Corporation+................... 5,784,788
------------
43,096,144
------------
COSMETICS AND TOILETRY -- 1.6%
49,000 Clorox Company................... 3,632,125
73,300 Gillette Company................. 6,326,706
------------
9,958,831
------------
DIVERSIFIED -- 1.7%
242,600 AlliedSignal Inc................. 10,310,500
------------
DRUGS -- 6.3%
117,500 Bristol-Myers Squibb Company..... 9,723,125
165,000 Merck & Company Inc.............. 16,489,688
236,900 Schering-Plough Corporation...... 12,200,350
------------
38,413,163
------------
ELECTRIC POWER -- 0.7%
94,200 AES Corporation+................. 4,121,250
------------
ELECTRICAL EQUIPMENT -- 8.2%
194,900 Emerson Electric Company......... 11,231,112
162,000 General Electric Company......... 11,026,125
149,150 Honeywell, Inc................... 10,021,016
113,300 Sundstrand Corporation........... 6,528,913
405,000 Westinghouse Electric
Corporation.................... 10,960,313
------------
49,767,479
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- 1.7%
55,425 Teradyne, Inc.+.................. $ 2,982,558
53,100 Texas Instruments, Inc........... 7,175,138
------------
10,157,696
------------
ENVIRONMENTAL -- 1.6%
114,000 Tyco International Ltd. ......... 9,355,125
------------
FINANCIAL SERVICES -- 5.9%
133,650 Equifax Inc...................... 4,201,622
126,100 Fannie Mae....................... 5,926,700
94,800 Green Tree Financial
Corporation.................... 4,455,600
36,400 Household International, Inc..... 4,120,025
189,200 Morgan Stanley, Dean Witter,
Discover & Company............. 10,228,625
43,500 SLM Holding Corporation.......... 6,720,750
------------
35,653,322
------------
FOOD PRODUCERS -- 2.2%
91,500 Cambell Soup Company............. 4,483,500
199,700 Nabisco Holdings Corporation,
Class A........................ 8,499,731
------------
12,983,231
------------
FOOD RETAILERS -- 0.8%
90,600 Safeway, Inc..................... 4,926,375
------------
INSURANCE -- 4.8%
84,300 American International Group,
Inc............................ 8,698,706
38,000 General Re Corporation........... 7,543,000
82,100 MGIC Investment Corporation...... 4,705,356
175,000 UNUM Corporation................. 7,984,375
------------
28,931,437
------------
MACHINERY AND EQUIPMENT -- 1.7%
78,350 Dover Corporation................ 5,318,006
93,200 Illinois Tool Works, Inc......... 4,660,000
------------
9,978,006
------------
MEDIA -- 1.6%
57,400 Reuters Holdings Plc., ADR....... 4,089,750
102,100 Time Warner Inc.................. 5,532,544
------------
9,622,294
------------
MEDICAL PRODUCTS AND SUPPLIES -- 10.2%
205,150 Abbott Laboratories.............. 13,116,778
232,800 Baxter International Inc......... 12,163,800
101,500 Becton, Dickinson & Company...... 4,859,312
100,650 Boston Scientific Corporation+... 5,554,622
137,500 Guidant Corporation.............. 7,700,000
255,300 Medtronic, Inc................... 11,999,100
45,600 Warner Lambert Company........... 6,153,150
------------
61,546,762
------------
OFFICE SUPPLIES -- 0.8%
120,800 Newell Company................... 4,832,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 19
NATIONS FUNDS
Nations Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
OIL -- INTERNATIONAL -- 1.4%
116,100 Mobil Corporation................ $ 8,591,400
------------
OIL SERVICES -- 2.5%
168,600 Halliburton Company.............. 8,767,200
69,150 Western Atlas, Inc.+............. 6,085,200
------------
14,852,400
------------
PRINTING AND PUBLISHING -- 0.8%
42,600 Gannett Company, Inc............. 4,598,137
------------
PROFESSIONAL SERVICES -- 1.8%
342,600 Service Corporation
International.................. 11,027,438
------------
RECREATION -- 3.1%
158,500 CUC International, Inc.+......... 4,913,500
167,100 Carnival Corporation............. 7,728,375
77,500 Disney (Walt) Company............ 6,248,437
------------
18,890,312
------------
RESTAURANTS AND LODGING -- 1.3%
108,200 HFS Inc.+........................ 8,054,137
------------
RETAIL -- SPECIALTY -- 4.6%
93,800 CompUSA, Inc..................... 3,283,000
112,200 CVS Corporation.................. 6,381,375
68,900 Home Depot Inc................... 3,591,412
132,150 Lowe's Companies Inc............. 5,137,331
406,400 OfficeMax, Inc. ................. 6,172,200
110,000 TJX Companies, Inc. ............. 3,361,875
------------
27,927,193
------------
SEMICONDUCTORS -- 3.8%
123,600 Adaptec, Inc.+................... 5,778,300
121,250 Intel Corporation................ 11,192,890
88,000 KLA-Tencor Corporation+.......... 5,945,500
------------
22,916,690
------------
TELECOMMUNICATIONS -- 3.7%
58,100 Lucent Technologies.............. 4,727,887
74,800 Nokia Corporation, Class A,
ADR............................ 7,017,175
45,750 Northern Telecom Ltd. ........... 4,755,141
49,800 Tellabs, Inc.+................... 2,564,700
62,500 Vodafone Group, ADR.............. 3,359,375
------------
22,424,278
------------
UTILITIES -- TELEPHONE -- 0.5%
90,300 AirTouch Communications, Inc.+... 3,200,006
------------
TOTAL COMMON STOCKS
(Cost $442,031,332)............ 601,083,961
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 0.8%
(Cost $4,804,000)
$ 4,804,000 Agreement with Smith Barney,
5.480% dated 09/30/97, to be
repurchased at $4,804,731 on
10/01/97, collateralized by:
$2,045,656 U.S. Treasury Note,
7.375% due 11/15/97; $558,077
U.S. Treasury Bond, 11.250% due
02/15/15; $1,438,045 Resolution
Funding Corp. Strips, Principal
Only, due 04/15/05; $1,031,321
GNMA, 6.000% due 05/20/27....... $ 4,804,000
============
TOTAL INVESTMENTS
(Cost $446,835,332*).................. 100.1% 605,887,961
OTHER ASSETS AND LIABILITIES (NET)...... (0.1) (361,690)
----- ------------
NET ASSETS.............................. 100.0% $605,526,271
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 20
NATIONS FUNDS
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 100.2%
AEROSPACE AND DEFENSE -- 1.9%
42,200 United Technologies Corporation...... $ 3,418,200
------------
APPAREL AND TEXTILES -- 2.4%
78,000 Liz Claiborne Inc. .................. 4,285,125
------------
AUTOMOTIVE AND TRUCK MANUFACTURERS -- 1.9%
78,100 Ford Motor Company................... 3,534,025
------------
AUTOMOBILE PARTS MANUFACTURERS -- 1.7%
32,600 Eaton Corporation.................... 3,011,425
------------
BANKS -- 6.4%
71,800 Ahmanson (H.F.) & Company............ 4,079,137
53,200 BankAmerica Corporation.............. 3,900,225
31,800 Chase Manhattan Corporation.......... 3,752,400
------------
11,731,762
------------
CHEMICALS -- BASIC -- 3.6%
73,400 Cytec Industries Inc.+............... 3,514,025
30,900 Rohm & Haas Company.................. 2,964,469
------------
6,478,494
------------
COMPUTER RELATED -- 7.9%
74,100 Compaq Computer Corporation+......... 5,538,975
51,900 Dell Computer Corporation+........... 5,027,812
64,300 Storage Technology Corporation+...... 3,074,344
17,420 Sun Microsystems Inc.+............... 815,474
------------
14,456,605
------------
COMPUTER SOFTWARE -- 3.8%
67,300 Compuware Corporation+............... 4,071,650
22,100 Microsoft Corporation+............... 2,924,106
------------
6,995,756
------------
DIVERSIFIED -- 1.6%
26,500 Loews Corporation.................... 2,992,844
------------
DRUGS -- 2.1%
29,300 Merck & Company Inc. ................ 2,928,169
17,900 Schering-Plough Corporation.......... 921,850
------------
3,850,019
------------
ELECTRIC POWER -- 0.6%
44,595 PG&E Corporation..................... 1,034,047
------------
ELECTRONICS -- 2.2%
100,000 National Semiconductor
Corporation+....................... 4,100,000
------------
FINANCIAL SERVICES -- 8.5%
55,600 GreenPoint Financial Corporation..... 3,523,650
93,950 Paine Webber Group, Inc. ............ 4,374,547
24,800 SLM Holding Corporation.............. 3,831,600
54,300 Travelers Group Inc. ................ 3,705,975
------------
15,435,772
------------
FOOD RETAILERS -- 1.9%
64,994 Safeway Inc.+........................ 3,534,049
------------
HOUSEWARES -- 1.9%
107,700 Premark International, Inc. ......... 3,446,400
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
INSURANCE -- 6.4%
19,200 CIGNA Corporation.................... $ 3,576,000
93,100 Equitable Companies, Inc. ........... 3,822,919
72,900 MGIC Investment Corporation.......... 4,178,081
------------
11,577,000
------------
MACHINERY AND EQUIPMENT -- 5.7%
62,100 Caterpillar Inc. .................... 3,349,519
43,300 Cummins Engine Inc. ................. 3,380,106
85,200 Ingersoll-Rand Company............... 3,668,925
1 Stewart & Stevenson Services,
Inc. .............................. 24
------------
10,398,574
------------
MEDICAL PRODUCTS AND SUPPLIES -- 3.4%
73,800 Guidant Corporation.................. 4,132,800
71,300 United States Surgical Corporation... 2,081,069
------------
6,213,869
------------
METALS AND MINING -- 1.6%
38,200 Phelps Dodge Corporation............. 2,965,275
------------
OIL -- DOMESTIC -- 4.4%
50,500 Pennzoil Company..................... 4,024,219
109,600 USX-Marathon Group (New)............. 4,075,750
------------
8,099,969
------------
OIL -- INTERNATIONAL -- 4.1%
41,700 British Petroleum Company Plc, ADR... 3,786,881
60,000 Texaco Inc. ......................... 3,686,250
------------
7,473,131
------------
OIL REFINING AND MARKETING -- 1.4%
80,500 Valero Energy Corporation............ 2,641,406
------------
OIL SERVICES -- 1.9%
80,300 Baker Hughes Inc. ................... 3,513,125
------------
PAPER & RELATED PRODUCTS -- 2.1%
83,400 Fort James Corporation............... 3,820,762
------------
RETAIL -- DISCOUNT -- 3.6%
123,200 TJX Companies Inc. .................. 3,765,300
123,600 Woolworth Corporation+............... 2,734,650
------------
6,499,950
------------
RETAIL -- GENERAL -- 4.0%
59,600 Dayton Hudson Corporation............ 3,572,275
96,500 Costco Companies, Inc.+.............. 3,630,812
------------
7,203,087
------------
STEEL -- 1.9%
98,700 USX-U.S. Steel Group................. 3,429,825
------------
TELECOMMUNICATIONS -- 1.8%
40,600 Lucent Technologies.................. 3,303,825
------------
TRANSPORTATION -- AIRLINES -- 2.1%
45,100 UAL Corporation+..................... 3,816,587
------------
TRUCKING AND SHIPPING -- 2.4%
54,300 Federal Express Corporation+......... 4,344,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 21
NATIONS FUNDS
Nations Disciplined Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- NATURAL GAS -- 3.5%
47,300 Columbia Gas Systems Inc. ........... $ 3,311,000
79,900 NICOR Inc. .......................... 2,996,250
------------
6,307,250
------------
UTILITIES -- TELEPHONE -- 1.5%
95,700 Cincinnati Bell Inc. ................ 2,721,469
------------
TOTAL COMMON STOCKS
(Cost $125,761,086)................ 182,633,627
============
TOTAL INVESTMENTS
(Cost $125,761,086*).................. 100.2% 182,633,627
OTHER ASSETS AND LIABILITIES (NET)...... (0.2) (369,358)
----- ------------
NET ASSETS.............................. 100.0% $182,264,269
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 22
NATIONS FUNDS
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 96.3%
APPAREL AND TEXTILES -- 4.3%
61,600 Jones Apparel Group, Inc.+.......... $ 3,326,400
85,800 Land's End Inc.+.................... 2,643,712
126,300 Stage Stores, Inc.+................. 5,446,688
146,100 The Men's Wearhouse, Inc.+.......... 5,442,225
------------
16,859,025
------------
AUTOMOBILE PARTS MANUFACTURERS -- 1.0%
141,900 Superior Industries International
Inc............................... 3,928,856
------------
BANKS -- 4.5%
192,700 Hibernia Corporation, Class A....... 3,275,900
140,000 Northern Trust Company.............. 8,277,500
102,000 State Street Corporation............ 6,215,625
------------
17,769,025
------------
BEVERAGES -- 1.4%
196,000 Coca-Cola Enterprises Inc........... 5,279,750
------------
BIO SPECIALTY PHARMACEUTICALS -- 0.8%
100,000 Biogen, Inc.+....................... 3,243,750
------------
BUILDING SUPPLIES -- 1.0%
73,500 Southdown Inc....................... 4,014,938
------------
CHEMICALS -- SPECIALTY -- 1.5%
126,000 Cytec Industries Inc.+.............. 6,032,250
------------
CIRCUITS -- 1.4%
80,000 Linear Technology Corporation....... 5,500,000
------------
COMMERCIAL SERVICES -- 0.1%
22,200 Pierce Leahy Corporation............ 602,175
------------
COMPUTER RELATED -- 1.7%
54,000 Comverse Technology Inc.+........... 2,848,500
44,200 Diebold, Inc........................ 2,093,975
80,000 Symantec Corporation................ 1,820,000
------------
6,762,475
------------
COMPUTER SERVICES -- 1.2%
66,150 Paychex, Inc. ...................... 2,306,981
63,000 Sterling Commerce................... 2,264,062
------------
4,571,043
------------
COMPUTER SOFTWARE -- 7.8%
64,000 Adobe Systems Inc................... 3,224,000
64,000 America On Line Inc................. 4,828,000
104,000 BMC Software, Inc.+................. 6,734,000
98,800 Compuware Corporation+.............. 5,977,400
30,000 McAfee Associates, Inc.+............ 1,590,000
26,000 Remedy Corporation.................. 895,375
70,000 Structural Dynamics Research
Corporation....................... 1,793,750
80,000 SunGard Data Systems, Inc.+......... 1,940,000
87,400 Visio Corporation+.................. 3,648,950
------------
30,631,475
------------
ELECTRIC COMPONENTS -- 4.5%
106,000 Atmel Corporation................... 3,862,375
44,000 Maxim Integrated Products Inc....... 3,143,250
19,000 Novellus Systems Inc................ 2,394,000
98,000 Solectron........................... 4,361,000
72,000 Xilinx Inc.......................... 3,645,000
------------
17,405,625
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRIC POWER -- 2.2%
114,000 AES Corporation+.................... $ 4,987,500
100,000 CMS Energy Corporation.............. 3,700,000
------------
8,687,500
------------
ELECTRICAL EQUIPMENT -- 0.9%
54,000 Jabil Circuit, Inc.+................ 3,537,000
------------
ELECTRONICS -- 2.5%
114,000 ADC Telecommunications Inc.+........ 3,705,000
92,000 Analog Devices, Inc.+............... 3,082,000
50,000 Sundstrand Corporation.............. 2,881,250
------------
9,668,250
------------
ENVIRONMENTAL -- 1.1%
103,000 USA Waste Service Inc.+............. 4,107,125
------------
EXPLORATION AND DRILLING -- 2.0%
66,000 BJ Services Inc.+................... 4,900,500
39,000 Smith International Inc.+........... 3,029,812
------------
7,930,312
------------
FINANCIAL SERVICES -- 5.6%
56,500 FIRSTPLUS Financial Group, Inc.+.... 3,171,062
45,000 Fiserv Inc. ........................ 1,974,375
82,500 Franklin Resources Inc. ............ 7,682,812
136,500 Green Tree Financial Corporation.... 6,415,500
46,667 Legg Mason Incorporated............. 2,461,667
------------
21,705,416
------------
INSURANCE -- 2.2%
68,000 Aflac Inc. ......................... 3,689,000
77,900 Penncorp Financial Group, Inc....... 2,414,900
43,100 Vesta Insurance Group............... 2,456,700
------------
8,560,600
------------
MEDICAL PRODUCTS AND SUPPLIES -- 5.9%
116,000 Acuson Corporation+................. 3,161,000
49,000 Centocor Inc........................ 2,330,562
134,000 DePuy, Inc.+........................ 3,584,500
85,000 ESC Medical Systems................. 3,198,125
45,400 Guidant Corporation................. 2,542,400
77,000 HBO & Company....................... 2,906,750
52,500 Stryker Corporation................. 2,293,594
47,000 Watson Pharmaceuticals.............. 2,808,250
------------
22,825,181
------------
MEDICAL SERVICES -- 7.4%
93,200 Centennial Health Corporation....... 2,143,600
98,230 Concentra Managed Care Inc.......... 3,468,747
90,000 Genesis Health Ventures+............ 3,504,375
50,000 Health Care and Retirement
Corporation....................... 1,859,375
149,000 Health Management Associates Inc.,
Class A+.......................... 4,712,125
189,000 National Surgery Centers, Inc.+..... 4,110,750
34,000 Oxford Health Plans, Inc............ 2,545,750
51,300 Pediatrix Medical Group Inc.+....... 2,263,612
48,000 PhyCor Inc.+........................ 1,395,000
112,500 Quorum Health Group, Inc.+.......... 2,749,219
------------
28,752,553
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 23
NATIONS FUNDS
Nations Emerging Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
OIL AND GAS DRILLING -- 4.7%
176,000 Ensco International Inc............. $ 6,941,000
113,000 Nabors Industries Inc............... 4,399,938
107,000 Noble Drilling Corporation.......... 3,450,750
72,000 Transocean Offshore Inc. ........... 3,451,500
------------
18,243,188
------------
OIL -- DOMESTIC -- 1.4%
163,900 Global Marine, Inc.+................ 5,449,675
------------
OIL SERVICES -- 4.9%
66,000 Camco International Companies
Inc............................... 4,603,500
75,000 Pioneer Natural Resources........... 3,140,625
86,000 Tidewater, Inc...................... 5,095,500
115,000 Tosco Corporation................... 4,003,438
49,000 Varco International Inc............. 2,376,500
------------
19,219,563
------------
PAPER AND FOREST PRODUCTS -- 1.2%
137,000 Caraustar Industries, Inc........... 4,692,250
------------
PRINTING AND PUBLISHING -- 1.5%
119,400 Belo (A.H.) Corporation, Class A.... 5,790,900
------------
PROFESSIONAL SERVICES -- 1.6%
181,000 Personnel Group of America, Inc.+... 6,199,250
------------
RECREATION -- 1.8%
138,400 International Speedway
Corporation+...................... 2,906,400
46,200 Penske Motorsports Inc.+............ 1,550,588
111,900 Speedway Motorsports, Inc.+......... 2,748,544
------------
7,205,532
------------
REITS -- OFFICE PROPERTY -- 0.3%
32,000 Equity Office Properties Trust...... 1,086,000
------------
RESTAURANTS AND LODGING -- 3.5%
188,700 La Quinta Inns Inc.................. 4,446,244
131,700 Papa John's International Inc.+..... 4,502,494
105,000 Promus Hotel Corporation+........... 4,705,312
------------
13,654,050
------------
RETAIL -- DISCOUNT -- 1.0%
111,327 Dollar General Corporation.......... 3,792,089
------------
RETAIL -- SPECIALTY -- 2.7%
157,200 Bed Bath & Beyond Inc.+............. 5,521,650
80,000 Staples Inc. ....................... 2,210,000
64,500 Tiffany & Company................... 2,741,250
------------
10,472,900
------------
SEMICONDUCTORS -- 2.4%
93,000 Altera Corporation+................. 4,766,250
92,000 Vitesse Semiconductor
Corporation+...................... 4,559,750
------------
9,326,000
------------
TELECOMMUNICATION EQUIPMENT -- 1.6%
80,000 Advanced Fibre Communication........ 3,280,000
88,000 ECI Telecom Ltd., ADR............... 2,849,000
------------
6,129,000
------------
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
TELECOMMUNICATIONS -- 2.3%
204,000 NEXTEL Communications Inc., Class
A+................................ $ 5,890,500
59,000 Tellabs, Inc.+...................... 3,038,500
------------
8,929,000
------------
TELEVISION -- 1.1%
194,000 TV Azteca S.A. de C.V., ADR......... 4,365,000
------------
TRANSPORTATION -- AIRLINES -- 1.5%
211,500 Comair Holdings Inc. ............... 5,684,062
------------
WATER TREATMENT SYSTEMS -- 0.7%
63,000 US Filter Corporation............... 2,712,937
------------
OTHER -- 1.1%
85,000 Atl Ultrasound Inc. ................ 3,973,750
19,200 Ispat International................. 549,600
------------
4,523,350
------------
TOTAL COMMON STOCKS
(Cost $260,408,155)............... 375,849,070
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 4.2%
(Cost $16,247,000)
$16,247,000 Agreement with Smith Barney,
5.480% dated 09/30/97, to be
repurchased $16,249,473 on
10/01/97, collateralized by:
$6,918,355 U.S. Treasury Note,
7.375% due 11/15/97; $1,887,402
U.S. Treasury Bond, 11.250% due
02/15/15; $4,863,429 Resolution
Funding Corp. Strips, Principal
Only, due 04/15/05; $3,487,899
GNMA, 6.000% due 05/20/27....... 16,247,000
============
TOTAL INVESTMENTS
(Cost $276,655,155*).................. 100.5% 392,096,070
OTHER ASSETS AND LIABILITIES (NET)...... (0.5) (2,021,842)
----- ------------
NET ASSETS.............................. 100.0% $390,074,228
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
ABBREVIATION:
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 24
NATIONS FUNDS
Nations Small Company Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 87.6%
ADVERTISING SALES -- 0.8%
41,125 HA-LO Industries, Inc.+............. $ 1,177,203
------------
AEROSPACE AND DEFENSE -- 1.2%
62,900 GenCorp, Inc........................ 1,788,719
------------
APPAREL AND TEXTILES -- 3.3%
52,678 Culp, Inc........................... 1,093,069
109,200 Delta Woodside Industries, Inc...... 662,025
55,600 Galey & Lord, Inc.+................. 1,049,450
63,200 Quicksilver, Inc.+.................. 2,306,800
------------
5,111,344
------------
BANKS -- 3.2%
48,554 Brenton Banks, Inc.................. 1,578,005
54,600 City National Corporation........... 1,747,200
24,800 USBANCORP, Inc...................... 1,599,600
------------
4,924,805
------------
BUILDING MATERIALS -- 2.1%
39,600 Centex Construction Products,
Inc............................... 1,173,150
12,400 Southdown, Inc...................... 677,350
52,400 TJ International, Inc............... 1,339,475
------------
3,189,975
------------
CHEMICALS -- SPECIALTY -- 1.3%
36,000 Crompton & Knowles Corporation...... 956,250
19,490 Fuller (H.B.) Company............... 1,056,114
------------
2,012,364
------------
COAL, GAS AND PIPELINE -- 0.8%
17,200 Kinder Morgan Energy Partners,
L.P............................... 1,213,675
------------
COMMERCIAL SERVICES -- 0.9%
53,000 Lason Holdings, Inc.+............... 1,464,125
------------
COMMUNICATIONS SOFTWARE -- 0.5%
23,900 Avid Technology, Inc.+.............. 776,750
------------
COMPUTER SERVICES -- 0.9%
50,400 Cybex Computer Products
Corporation+...................... 1,360,800
------------
COMPUTER SOFTWARE -- 2.9%
46,300 Exabyte Corporation+................ 509,300
39,600 Progress Software Corporation+...... 886,050
101,700 Rogue Wave Software+................ 1,398,375
69,500 Viewlogic Systems, Inc.+............ 1,654,969
------------
4,448,694
------------
CONSTRUCTION -- 4.1%
38,400 Champion Enterprises, Inc.+......... 734,400
78,400 Kaufman & Broad Home Corporation.... 1,700,300
29,500 Oakwood Homes Corporation........... 837,063
41,500 Pulte Corporation................... 1,587,375
43,800 Zurn Industries, Inc................ 1,516,575
------------
6,375,713
------------
CONSUMER PRODUCTS -- 0.5%
24,500 Russ Berrie & Company, Inc.......... 716,625
------------
COSMETICS AND TOILETRY -- 0.8%
39,600 Alberto-Culver Company.............. 1,205,325
------------
ELECTRIC POWER -- 0.3%
23,800 Northwestern Public Service
Company........................... 438,813
------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRICAL PRODUCTS -- 1.6%
20,300 Jabil Circuit, Inc.+................ $ 1,329,650
44,960 Wyman-Gordon Company+............... 1,180,200
------------
2,509,850
------------
ELECTRONICS -- 2.6%
41,100 Electro Scientific Industries,
Inc.+............................. 2,507,100
39,200 Esterline Technologies
Corporation+...................... 1,528,800
------------
4,035,900
------------
ELECTRONICS -- SEMICONDUCTOR -- 3.9%
44,000 Cyrix Corporation+.................. 1,474,000
36,000 Electroglas, Inc.+.................. 1,224,000
89,400 LTX Corporation+.................... 653,738
42,000 Plexus Corporation+................. 1,475,250
36,700 Watkins-Johnson Company............. 1,229,450
------------
6,056,438
------------
EXPLORATION AND DRILLING -- 6.1%
35,000 Cliffs Drilling Company+............ 2,436,875
43,946 Forest Oil Corporation+............. 802,014
98,700 Parker Drilling Company+............ 1,499,006
34,800 Reading & Bates Corporation+........ 1,446,375
36,700 Swift Energy Company+............... 1,034,481
17,900 Varco International, Inc.+.......... 868,150
16,400 Vintage Petroleum, Inc. ............ 807,700
26,900 Wiser Oil Company................... 460,662
------------
9,355,263
------------
FINANCIAL SERVICES -- 1.5%
40,450 Aames Financial Corporation......... 654,784
74,470 Southwest Securities Group, Inc..... 1,712,810
------------
2,367,594
------------
FOOD -- 0.5%
18,300 Quality Food Centers, Inc.+......... 749,156
------------
FURNITURE AND APPLIANCES -- 1.9%
29,300 Bush Industries, Inc., Class A...... 811,244
30,200 Ethan Allen Interiors Inc........... 936,200
92,900 O'Sullivan Industries Holdings,
Inc.+............................. 1,161,250
------------
2,908,694
------------
INSTRUMENTS -- SCIENTIFIC -- 1.0%
28,000 Dionex Corporation+................. 1,510,250
------------
INSURANCE -- 3.5%
27,313 Delphi Financial Group, Inc., Class
A+................................ 1,172,752
23,000 Executive Risk Inc. ................ 1,572,625
46,080 Frontier Insurance Group, Inc. ..... 1,751,040
14,700 Triad Guaranty, Inc.+............... 821,363
------------
5,317,780
------------
MACHINERY -- 1.0%
69,300 MagneTek, Inc.+..................... 1,550,587
------------
MACHINERY AND EQUIPMENT -- 2.0%
17,700 Applied Power, Inc., Class A........ 1,113,994
56,400 Gardner Denver Machinery Inc.+...... 1,899,975
------------
3,013,969
------------
MANUFACTURING INDUSTRIES -- 1.0%
25,300 Kaydon Corporation.................. 1,518,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 25
NATIONS FUNDS
Nations Small Company Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MEDICAL BIOTECHNOLOGY -- 2.4%
28,700 Human Genome Sciences, Inc.+........ $ 1,235,894
70,700 Molecular Dynamics, Inc.+........... 1,908,900
42,900 Vical, Inc.+........................ 605,963
------------
3,750,757
------------
MEDICAL PRODUCTS AND SUPPLIES -- 0.9%
52,100 Sullivan Dental Products, Inc....... 1,335,062
------------
MEDICAL SERVICES -- 0.8%
46,100 Acuson Corporation+................. 1,256,225
------------
METALS AND MINING -- 0.9%
69,900 AMCOL International Corporation..... 1,450,425
------------
MULTIMEDIA -- 1.0%
26,166 Pulitizer Publishing Company........ 1,478,379
------------
OFFICE SUPPLIES -- 0.4%
25,300 American Business Products, Inc..... 635,662
------------
OIL SERVICES -- 0.6%
16,200 SECOR SMIT Inc.+.................... 1,004,400
------------
PAPER AND FOREST PRODUCTS -- 0.4%
18,800 Chesapeake Corporation.............. 681,500
------------
PHOTO AND OPTICAL -- 0.8%
36,400 Innovex, Inc........................ 1,173,900
------------
PRINTING AND PUBLISHING -- 0.6%
26,350 McClatchy Newspapers, Inc., Class
A................................. 905,781
------------
PROFESSIONAL SERVICES -- 1.8%
34,500 Best Software, Inc.+................ 448,500
35,700 Inacom Corporation+................. 1,327,594
45,500 SCB Computer Technology, Inc.+...... 955,500
------------
2,731,594
------------
RESTAURANTS AND LODGING -- 1.0%
40,400 Foodmaker, Inc.+.................... 760,025
28,500 Sbarro, Inc......................... 798,000
------------
1,558,025
------------
RETAIL -- DISCOUNT -- 1.7%
32,500 BJ'S Wholesale Club, Inc.+.......... 948,594
63,500 ShopKo Stores, Inc.+................ 1,651,000
------------
2,599,594
------------
RETAIL -- GENERAL -- 2.2%
30,100 Goody's Family Clothing Inc.+....... 970,725
36,600 Neiman Marcus Group, Inc.+.......... 1,171,200
36,400 Ross Stores, Inc. .................. 1,242,150
------------
3,384,075
------------
RETAIL -- SPECIALTY -- 3.7%
35,370 Eagle Hardware & Garden, Inc.+...... 696,347
58,700 Fabri-Centers of America, Class
A+................................ 1,357,437
84,900 Fossil, Inc.+....................... 1,666,163
25,950 Pacific Sunwear of California+...... 1,063,950
21,700 Williams-Sonoma, Inc.+.............. 927,675
------------
5,711,572
------------
SAVINGS AND LOANS -- 3.7%
50,600 Bay View Capital Corporation........ 1,385,175
52,300 First Republic Bank+................ 1,399,025
28,100 ONBANcorp, Inc...................... 1,608,725
11,837 Security Capital Corporation........ 1,309,468
------------
5,702,393
------------
VALUE
SHARES (NOTE 1)
- ---------------------------------------------------------------
COMMON STOCKS -- (CONTINUED)
STEEL -- 0.4%
43,670 Steel Technologies Inc.............. $ 543,146
------------
TELECOMMUNICATIONS -- 7.0%
50,000 Allen Telecom Inc.+................. 1,425,000
51,600 CellStar Corporation+............... 2,399,400
33,200 CommNet Cellular, Inc.+............. 1,164,075
31,600 Electromagnetic Sciences, Inc.+..... 892,700
82,400 Harmonic Lightwaves, Inc.+.......... 1,349,300
26,000 Spectrian Corporation+.............. 1,667,250
87,500 Stanford Telecommunications,
Inc.+............................. 1,914,062
------------
10,811,787
------------
TELECOMMUNICATIONS EQUIPMENT -- 1.5%
107,000 ANTEC Corporation+.................. 1,257,250
75,000 Proxim, Inc.+....................... 1,017,187
------------
2,274,437
------------
TRANSPORTATION -- AIRLINES -- 2.4%
42,600 Air Express International
Corporation....................... 1,554,900
35,500 Airborne Freight Corporation........ 2,149,969
------------
3,704,869
------------
VITAMINS AND NUTRITIONAL PRODUCTS -- 0.9%
68,300 NBTY, Inc.+......................... 1,442,838
------------
OTHER -- 2.3%
47,500 Aehr Test Systems+.................. 840,156
65,800 Calgon Carbon Corporation........... 859,512
10,400 Coherent, Inc. +.................... 575,900
24,800 DT Industries, Inc.................. 818,400
22,200 Tefron Ltd.......................... 444,000
------------
3,537,968
------------
TOTAL COMMON STOCKS
(Cost $95,060,818)................ 134,772,800
============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 13.3%
(Cost $20,520,000)
$20,520,000 Agreement with Smith Barney,
5.480% dated 09/30/97, to be
repurchased at $20,523,124 on
10/01/97, collateralized by:
$8,737,899 U.S. Treasury Note,
7.375% due 11/15/97; $2,383,793
U.S. Treasury Bond, 11.250% due
02/15/15; $6,142,523 Resolution
Funding Corp. Strips, Principal
Only, due 04/15/05; $4,405,224
GNMA, 6.000% due 05/20/2....... 20,520,000
============
TOTAL INVESTMENTS
(Cost $115,580,818*).................. 100.9% 155,292,800
OTHER ASSETS AND LIABILITIES (NET)...... (0.9) (1,402,450)
----- ------------
NET ASSETS.............................. 100.0% $153,890,350
===== ============
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 26
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY CAPITAL
ASSETS INCOME VALUE INDEX GROWTH
FUND FUND FUND FUND FUND
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1),
See accompanying schedules:
Securities................................. $233,891,298 $539,043,068 $1,947,051,037 $737,928,463 $601,083,961
Repurchase agreements...................... 5,939,000 28,221,000 9,525,000 -- 4,804,000
------------ ------------ -------------- ------------ ------------
Total investments........................ 239,830,298 567,264,068 1,956,576,037 737,928,463 605,887,961
Short-term investments held as collateral for
loaned securities (Note 8)................. 10,100,056 10,686,893 56,181,183 2,065,885 9,567,066
Cash......................................... 29,885 494 78 65,207 229
Dividends receivable......................... 257,011 956,432 2,725,784 1,074,032 431,313
Interest receivable.......................... 671,785 625,399 1,450 -- 731
Receivable for Fund
shares sold................................ 883,340 503,484 3,504,191 1,473,444 811,759
Receivable for investment securities sold.... 8,616,065 2,825,251 8,555,151 3,025,495 8,419,460
Unamortized organization costs (Note 6)...... -- -- -- 1,750 --
Prepaid expenses and other assets............ 86,935 51,657 153,541 -- 72,208
------------ ------------ -------------- ------------ ------------
Total Assets............................... 260,475,375 582,913,678 2,027,697,415 745,634,276 625,190,727
------------ ------------ -------------- ------------ ------------
LIABILITIES:
Due to custodian............................. -- -- -- -- --
Collateral on securities loaned (Note 8)..... 10,100,056 10,686,893 56,181,183 2,065,885 9,567,066
Note Payable (Note 7)........................ -- -- -- 3,500,000 --
Payable for Fund
shares redeemed............................ 2,027,675 593,641 6,349,594 855,282 3,781,982
Payable for investment securities
purchased.................................. 9,899,614 5,285,747 -- -- 5,733,550
Investment advisory fee payable (Note 2)..... 151,311 306,299 1,222,751 98,355 387,119
Administration fee payable (Note 2).......... 20,175 47,135 163,061 60,852 51,616
Shareholder servicing and distribution fees
payable (Note 3)........................... 81,056 147,101 134,217 2,999 57,638
Custodian fees payable
(Note 2)................................... 10,329 22,864 46,383 7,711 10,724
Accrued Trustees'/Directors' fees and
expenses (Note 2).......................... 15,400 20,949 88,131 32,196 48,198
Accrued expenses and other payables.......... 29,357 74,196 219,992 28,712 26,563
------------ ------------ -------------- ------------ ------------
Total Liabilities.......................... 22,334,973 17,184,825 64,405,312 6,651,992 19,664,456
------------ ------------ -------------- ------------ ------------
NET ASSETS................................... $238,140,402 $565,728,853 $1,963,292,103 $738,982,284 $605,526,271
============ ============ ============== ============ ============
Investments, at cost......................... $231,143,566 $467,970,033 $1,409,538,046 $485,560,053 $446,835,332
============ ============ ============== ============ ============
<CAPTION>
NATIONS NATIONS NATIONS
DISCIPLINED EMERGING SMALL COMPANY
EQUITY GROWTH GROWTH
FUND FUND FUND
--------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Note 1),
See accompanying schedules:
Securities................................. $ 182,633,627 $375,849,070 $134,772,800
Repurchase agreements...................... -- 16,247,000 20,520,000
------------- ------------ ------------
Total investments........................ 182,633,627 392,096,070 155,292,800
Short-term investments held as collateral for
loaned securities (Note 8)................. -- 17,105,920 9,988,426
Cash......................................... -- 196 229
Dividends receivable......................... 129,904 85,500 54,378
Interest receivable.......................... -- 2,473 3,124
Receivable for Fund
shares sold................................ 214,370 693,810 198,971
Receivable for investment securities sold.... 813,530 -- 14,775
Unamortized organization costs (Note 6)...... -- 760 --
Prepaid expenses and other assets............ 7,295 30,713 57,250
------------- ------------ ------------
Total Assets............................... 183,798,726 410,015,442 165,609,953
------------- ------------ ------------
LIABILITIES:
Due to custodian............................. 677,830 -- --
Collateral on securities loaned (Note 8)..... -- 17,105,920 9,988,426
Note Payable (Note 7)........................ -- -- --
Payable for Fund
shares redeemed............................ 647,416 2,465,659 37,619
Payable for investment securities
purchased.................................. -- -- 1,559,020
Investment advisory fee payable (Note 2)..... 113,315 238,381 83,287
Administration fee payable (Note 2).......... 15,111 31,784 12,202
Shareholder servicing and distribution fees
payable (Note 3)........................... 26,002 43,747 2,125
Custodian fees payable
(Note 2)................................... 9,824 21,609 9,232
Accrued Trustees'/Directors' fees and
expenses (Note 2).......................... 8,816 20,854 489
Accrued expenses and other payables.......... 36,143 13,260 27,203
------------- ------------ ------------
Total Liabilities.......................... 1,534,457 19,941,214 11,719,603
------------- ------------ ------------
NET ASSETS................................... $ 182,264,269 $390,074,228 $153,890,350
============= ============ ============
Investments, at cost......................... $ 125,761,086 $276,655,155 $115,580,818
============= ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 27
NATIONS FUNDS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) SEPTEMBER 30, 1997 (UNAUDITED)
NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY CAPITAL
ASSETS INCOME VALUE INDEX GROWTH
FUND FUND FUND FUND FUND
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income/(distribution in excess of net
investment income)......................... $ 55,586 $ 269,153 $ 81,226 $ 295,518 $ 215,822
Accumulated net realized gain on investments
and futures contracts...................... 23,132,761 37,282,181 200,891,184 956,838 88,185,499
Net unrealized appreciation of investments,
futures contracts and foreign currency
transactions............................... 8,686,732 99,294,035 547,037,991 252,368,414 159,052,629
Paid-in capital.............................. 206,265,323 428,883,484 1,215,281,702 485,361,514 358,072,321
------------ ------------ -------------- ------------ ------------
$238,140,402 $565,728,853 $1,963,292,103 $738,982,284 $605,526,271
============ ============ ============== ============ ============
NET ASSETS:
Primary A Shares............................. $145,432,778 $359,042,870 $1,691,142,223 $731,202,448 $512,326,701
============ ============ ============== ============ ============
Primary B Shares............................. $ 7,671,774 $ 6,542,001 $ 23,739,429 $ 5,027,625 $ 8,548,074
============ ============ ============== ============ ============
Investor A Shares............................ $ 10,904,248 $ 61,144,623 $ 109,760,924 $ 2,752,211 27,343,869
============ ============ ============== ============ ============
Investor B Shares (formerly Investor N
Shares).................................... $ 71,874,613 $127,232,548 $ 123,457,328 $ -- $ 50,539,268
============ ============ ============== ============ ============
Investor C Shares............................ $ 2,256,989 $ 11,766,811 $ 15,192,199 $ -- $ 6,768,359
============ ============ ============== ============ ============
SHARES OUTSTANDING:
Primary A Shares............................. 12,256,520 26,019,021 79,437,737 36,818,035 38,723,395
============ ============ ============== ============ ============
Primary B Shares............................. 647,386 474,305 1,114,944 253,090 648,199
============ ============ ============== ============ ============
Investor A Shares............................ 921,083 4,446,226 5,156,119 138,826 2,073,860
============ ============ ============== ============ ============
Investor B Shares............................ 6,082,405 9,264,269 5,822,840 -- 3,922,006
============ ============ ============== ============ ============
Investor C Shares............................ 191,542 848,987 719,150 -- 523,254
============ ============ ============== ============ ============
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share............................ $11.87 $13.80 $21.29 $19.86 $13.23
====== ====== ====== ====== ======
PRIMARY B SHARES:
Net asset value, offering and redemption
price per share............................ $11.85 $13.79 $21.29 $19.86 $13.19
====== ====== ====== ====== ======
INVESTOR A SHARES:
Net asset value, offering and redemption
price per share............................ $11.84 $13.75 $21.29 $19.82 $13.19
====== ====== ====== ====== ======
INVESTOR B SHARES:
Net asset value, offering and redemption
price per share............................ $11.82 $13.73 $21.20 N/A $12.89
====== ====== ====== ====== ======
INVESTOR C SHARES:
Net asset value and offering price per
share*..................................... $11.78 $13.86 $21.13 N/A $12.94
====== ====== ====== ====== ======
<CAPTION>
NATIONS NATIONS NATIONS
DISCIPLINED EMERGING SMALL COMPANY
EQUITY GROWTH GROWTH
FUND FUND FUND
--------------------------------------------
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income/(distribution in excess of net
investment income)......................... $ (37,137) $ (616,936) $ 100,445
Accumulated net realized gain on investments
and futures contracts...................... 11,481,281 23,852,499 4,729,150
Net unrealized appreciation of investments,
futures contracts and foreign currency
transactions............................... 56,872,541 115,440,915 39,711,982
Paid-in capital.............................. 113,947,584 251,397,750 109,348,773
------------- ------------ ------------
$ 182,264,269 $390,074,228 $153,890,350
============= ============ ============
NET ASSETS:
Primary A Shares............................. $ 142,896,038 $324,587,778 $144,705,699
============= ============ ============
Primary B Shares............................. $ 1,118,075 $ 4,299,898 $ --
============= ============ ============
Investor A Shares............................ $ 10,267,724 $ 15,533,191 $ 5,358,583
============= ============ ============
Investor B Shares (formerly Investor N
Shares).................................... $ 26,996,633 $ 43,204,307 $ 539,527
============= ============ ============
Investor C Shares............................ $ 985,799 $ 2,449,054 $ 3,286,541
============= ============ ============
SHARES OUTSTANDING:
Primary A Shares............................. 6,455,102 19,274,556 9,439,289
============= ============ ============
Primary B Shares............................. 50,556 256,992 --
============= ============ ============
Investor A Shares............................ 464,846 935,346 350,439
============= ============ ============
Investor B Shares............................ 1,243,999 2,703,840 35,444
============= ============ ============
Investor C Shares............................ 44,778 152,734 214,380
============= ============ ============
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share............................ $22.14 $16.84 $15.33
====== ====== ======
PRIMARY B SHARES:
Net asset value, offering and redemption
price per share............................ $22.12 $16.73 N/A
====== ====== ======
INVESTOR A SHARES:
Net asset value, offering and redemption
price per share............................ $22.09 $16.61 $15.29
====== ====== ======
INVESTOR B SHARES:
Net asset value, offering and redemption
price per share............................ $21.70 $15.98 $15.22
====== ====== ======
INVESTOR C SHARES:
Net asset value and offering price per
share*..................................... $22.02 $16.03 $15.33
====== ====== ======
</TABLE>
- ---------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 28
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY CAPITAL
ASSETS INCOME VALUE INDEX GROWTH
FUND FUND FUND FUND FUND
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes
of $7,877, $0, $0, $43,089, $0, $781, $0,
and $0, respectively)...................... $ 1,619,666 $ 6,153,407 $ 17,681,121 $ 6,140,015 $ 3,322,382
Interest..................................... 3,108,657 2,680,402 1,096,917 250,051 511,266
Security lending............................. 3,868 7,373 35,361 4,287 12,343
----------- ------------ ------------ ------------ ------------
Total investment income................ 4,732,191 8,841,182 18,813,399 6,394,353 3,845,991
----------- ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fee (Note 2)............. 878,294 1,685,930 6,806,530 1,732,445 2,386,738
Administration fee (Note 2).................. 117,106 255,920 907,537 346,489 318,232
Transfer agent fees (Note 2)................. 113,804 171,927 535,999 38,013 261,393
Custodian fees (Note 2)...................... 19,449 27,234 67,120 57,371 33,028
Legal and audit fees......................... 19,496 30,039 76,790 30,487 43,613
Registration and filing fees................. 24,320 -- 94,850 46,049 --
Trustees'/Directors' fees and expenses (Note
2)......................................... 4,110 4,541 26,571 10,790 11,997
Amortization of organization costs (Note
6)......................................... 2,016 -- -- 750 2,018
Interest expense (Note 7).................... -- -- -- 7,406 1,643
Other........................................ 9,625 35,230 55,249 13,318 28,803
----------- ------------ ------------ ------------ ------------
Subtotal................................. 1,188,220 2,210,821 8,570,646 2,283,118 3,087,465
Shareholder servicing and distribution fees
(Note 3):
Primary B Shares........................... 17,846 17,014 73,657 15,410 31,319
Investor A Shares.......................... 13,202 69,163 115,677 2,627 30,122
Investor B Shares.......................... 285,177 503,802 448,344 -- 237,938
Investor C Shares.......................... 7,301 19,738 27,030 -- 20,497
Fees waived by investment adviser (Note 2)... -- (2,391) -- (1,064,567) --
----------- ------------ ------------ ------------ ------------
Total expenses......................... 1,511,746 2,818,147 9,235,354 1,236,588 3,407,341
Fees reduced by credits allowed by the
custodian (Note 2)......................... (878) (3,284) (840) -- --
----------- ------------ ------------ ------------ ------------
Net expenses............................. 1,510,868 2,814,863 9,234,514 1,236,588 3,407,341
----------- ------------ ------------ ------------ ------------
NET INVESTMENT INCOME/(LOSS)................. 3,221,323 6,026,319 9,578,885 5,157,765 438,650
----------- ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTES 1 AND 4):
Net realized gain from:
Security transactions...................... 23,737,260 37,915,203 200,962,138 776,801 89,035,836
Forward foreign currency contracts and
foreign currency transactions............ -- -- -- 5 --
Futures contracts........................ -- -- -- 1,738,760 --
----------- ------------ ------------ ------------ ------------
Net realized gain on investments during the
period..................................... 23,737,260 37,915,203 200,962,138 2,515,566 89,035,836
----------- ------------ ------------ ------------ ------------
Change in unrealized appreciation of:
Securities................................. 12,559,162 81,521,319 265,433,678 146,545,245 67,227,782
Futures contracts.......................... -- -- -- 260,600 --
Foreign currency and other assets and
liabilities.............................. -- -- -- 4 --
----------- ------------ ------------ ------------ ------------
Net unrealized appreciation of investments
during the period.......................... 12,559,162 81,521,319 265,433,678 146,805,849 67,227,782
----------- ------------ ------------ ------------ ------------
Net realized and unrealized gain on
investments................................ 36,296,422 119,436,522 466,395,816 149,321,415 156,263,618
----------- ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $39,517,745 $125,462,841 $475,974,701 $154,479,180 $156,702,268
=========== ============ ============ ============ ============
<CAPTION>
NATIONS NATIONS NATIONS
DISCIPLINED EMERGING SMALL COMPANY
EQUITY GROWTH GROWTH
FUND FUND FUND(a)
----------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes
of $7,877, $0, $0, $43,089, $0, $781, $0,
and $0, respectively)...................... $ 1,105,183 $ 546,997 $ 361,373
Interest..................................... 78,078 745,909 223,695
Security lending............................. 846 17,554 8,594
------------ ------------ -----------
Total investment income................ 1,184,107 1,310,460 593,662
------------ ------------ -----------
EXPENSES:
Investment advisory fee (Note 2)............. 639,704 1,318,412 499,858
Administration fee (Note 2).................. 85,294 175,788 52,826
Transfer agent fees (Note 2)................. 53,257 126,240 38,281
Custodian fees (Note 2)...................... 13,641 25,820 12,428
Legal and audit fees......................... 13,202 24,682 10,643
Registration and filing fees................. -- 25,837 28,519
Trustees'/Directors' fees and expenses (Note
2)......................................... 2,536 6,012 673
Amortization of organization costs (Note
6)......................................... -- 2,279 --
Interest expense (Note 7).................... 2,358 -- --
Other........................................ 26,958 1,047 3,488
------------ ------------ -----------
Subtotal................................. 836,950 1,706,117 646,716
Shareholder servicing and distribution fees
(Note 3):
Primary B Shares........................... 3,063 9,759 --
Investor A Shares.......................... 10,673 17,739 3,921
Investor B Shares.......................... 117,136 190,489 7,840
Investor C Shares.......................... 2,241 6,595 531
Fees waived by investment adviser (Note 2)... -- -- (162,700)
------------ ------------ -----------
Total expenses......................... 970,063 1,930,699 496,308
Fees reduced by credits allowed by the
custodian (Note 2)......................... (1,282) (3,303) (2,201)
------------ ------------ -----------
Net expenses............................. 968,781 1,927,396 494,107
------------ ------------ -----------
NET INVESTMENT INCOME/(LOSS)................. 215,326 (616,936) 99,555
------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTES 1 AND 4):
Net realized gain from:
Security transactions...................... 11,514,777 24,639,333 5,835,041
Forward foreign currency contracts and
foreign currency transactions............ -- -- --
Futures contracts........................ -- -- 373,851
------------ ------------ -----------
Net realized gain on investments during the
period..................................... 11,514,777 24,639,333 6,208,892
------------ ------------ -----------
Change in unrealized appreciation of:
Securities................................. 43,349,582 87,115,528 25,469,132
Futures contracts.......................... -- -- --
Foreign currency and other assets and
liabilities.............................. -- -- --
------------ ------------ -----------
Net unrealized appreciation of investments
during the period.......................... 43,349,582 87,115,528 25,469,132
------------ ------------ -----------
Net realized and unrealized gain on
investments................................ 54,864,359 111,754,861 31,678,024
------------ ------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $55,079,685 $111,137,925 $31,777,579
============ ============ ===========
</TABLE>
- ---------------
(a) The period for the Nations Small Company Growth Fund reflects operations
from May 17, 1997 through September 30, 1997 (Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 29
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY CAPITAL
ASSETS INCOME VALUE INDEX GROWTH
FUND FUND FUND FUND FUND
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net investment income/(loss)................. $ 3,221,323 $ 6,026,319 $ 9,578,885 $ 5,157,765 $ 438,650
Net realized gain on investments............. 23,737,260 37,915,203 200,962,138 2,515,566 89,035,836
Change in unrealized appreciation of
investments................................ 12,559,162 81,521,319 265,433,678 146,805,849 67,227,782
------------ ------------ -------------- ------------ ------------
Net increase in net assets resulting from
operations................................. 39,517,745 125,462,841 475,974,701 154,479,180 156,702,268
Distributions to shareholders from net
investment income:
Primary A Shares........................... (2,214,638) (4,190,377) (9,016,238) (4,822,560) (322,544)
Primary B Shares........................... (94,362) (61,936) (90,630) (26,662) --
Investor A Shares.......................... (151,265) (604,646) (410,223) (13,025) --
Investor B Shares.......................... (742,988) (989,996) (231,336) -- --
Investor C Shares.......................... (25,856) (56,284) (20,603) -- --
Distributions to shareholders from net
realized gain on investments:
Primary A Shares........................... (12,900,437) (16,701,603) (60,428,446) (1,759,988) (64,809,169)
Primary B Shares........................... (593,587) (540,635) (1,381,204) (16,169) (1,565,156)
Investor A Shares.......................... (859,640) (3,999,159) (3,576,561) (4,730) (2,589,026)
Investor B Shares.......................... (6,046,638) (8,934,318) (5,010,321) -- (5,387,894)
Investor C Shares.......................... (194,608) (410,485) (323,723) -- (702,569)
Net increase/(decrease) in net assets from
Fund share transactions:
Primary A Shares........................... (19,310) 92,434,468 130,400,315 18,095,394 (90,646,883)
Primary B Shares........................... 1,619,124 (741,876) (9,049,148) (1,824,953) (5,455,882)
Investor A Shares.......................... 1,084,718 6,390,081 26,172,002 (241,996) 3,633,385
Investor B Shares.......................... 3,259,343 4,381,663 7,333,075 -- 2,736,214
Investor C Shares.......................... 705,943 6,081,599 7,687,988 -- 247,916
------------ ------------ -------------- ------------ ------------
Net increase/(decrease) in
net assets................................. 22,343,544 197,519,337 558,029,648 163,864,491 (8,159,340)
NET ASSETS:
Beginning of period.......................... 215,796,858 368,209,516 1,405,262,455 575,117,793 613,685,611
------------ ------------ -------------- ------------ ------------
End of period................................ $238,140,402 $565,728,853 $1,963,292,103 $738,982,284 $605,526,271
============ ============ ============== ============ ============
Undistributed net investment
income/(distributions in excess of net
investment income) at end of period........ $ 55,586 $ 269,153 $ 81,226 $ 295,518 $ 215,822
============ ============ ============== ============ ============
<CAPTION>
NATIONS NATIONS NATIONS
DISCIPLINED EMERGING SMALL COMPANY
EQUITY GROWTH GROWTH
FUND FUND FUND(a)
-------------------------------------------
<S> <C> <C> <C>
Net investment income/(loss)................. $ 215,326 $ (616,936) $ 99,555
Net realized gain on investments............. 11,514,777 24,639,333 6,208,892
Change in unrealized appreciation of
investments................................ 43,349,582 87,115,528 25,469,132
------------- ------------ ------------
Net increase in net assets resulting from
operations................................. 55,079,685 111,137,925 31,777,579
Distributions to shareholders from net
investment income:
Primary A Shares........................... (246,132) -- --
Primary B Shares........................... -- -- --
Investor A Shares.......................... (6,331) -- --
Investor B Shares.......................... -- -- --
Investor C Shares.......................... -- -- --
Distributions to shareholders from net
realized gain on investments:
Primary A Shares........................... (10,630,772) (13,411,660) --
Primary B Shares........................... (121,515) (161,266) --
Investor A Shares.......................... (730,213) (776,178) --
Investor B Shares.......................... (2,175,508) (1,812,552) --
Investor C Shares.......................... (60,344) (88,085) --
Net increase/(decrease) in net assets from
Fund share transactions:
Primary A Shares........................... 7,825,972 (22,286,499) 5,174,016
Primary B Shares........................... (219,417) 328,163 --
Investor A Shares.......................... 1,790,276 (223,284) 674,378
Investor B Shares.......................... 2,421,977 (231,247) (2,772,739)
Investor C Shares.......................... 415,464 479,017 3,254,264
------------- ------------ ------------
Net increase/(decrease) in
net assets................................. 53,343,142 72,954,334 38,107,498
NET ASSETS:
Beginning of period.......................... 128,921,127 317,119,894 115,782,852
------------- ------------ ------------
End of period................................ $ 182,264,269 $390,074,228 $153,890,350
============= ============ ============
Undistributed net investment
income/(distributions in excess of net
investment income) at end of period........ $ (37,137) $ (616,936) $ 100,445
============= ============ ============
</TABLE>
- ---------------
(a) The period for the Nations Small Company Growth Fund reflects operations
from May 17, 1997 through September 30, 1997 (Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1997 AND THE PERIOD ENDED MAY 16, 1997
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
BALANCED EQUITY NATIONS EQUITY CAPITAL
ASSETS INCOME VALUE INDEX GROWTH
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net investment income/(loss)................. $ 7,417,326 $ 11,061,733 $ 18,813,204 $ 8,208,889 $ 2,448,490
Net realized gain on investments............. 35,946,666 74,322,757 146,169,597 2,109,098 186,162,170
Change in unrealized
appreciation/(depreciation) of
investments................................ (15,894,144) (29,303,706) 51,368,916 65,065,504 (73,539,048)
------------ ------------ -------------- ------------ ------------
Net increase in net assets resulting from
operations................................. 27,469,848 56,080,784 216,351,717 75,383,491 115,071,612
Distributions to shareholders from net
investment income:
Primary A Shares........................... (5,399,863) (6,913,427) (17,054,950) (8,239,169) (2,456,103)
Primary B Shares........................... (79,708) (64,743) (141,517) (25,680) --
Investor A Shares.......................... (248,137) (1,325,087) (810,737) (12,723) (32,258)
Investor B Shares.......................... (1,668,470) (2,623,184) (736,681) -- --
Investor C Shares.......................... (36,108) (129,443) (58,256) -- --
Distributions to shareholders from net
realized gain on investments:
Primary A Shares........................... (20,247,211) (37,718,705) (90,693,794) (1,840,430) (157,141,909)
Primary B Shares........................... (349,059) (364,882) (1,455,500) (5,984) (1,860,901)
Investor A Shares.......................... (913,264) (7,574,248) (5,016,860) (859) (5,044,758)
Investor B Shares.......................... (8,113,431) (18,346,111) (7,458,038) -- (10,035,157)
Investor C Shares.......................... (164,110) (811,608) (428,414) -- (1,078,436)
Net increase/(decrease) in net assets from
Fund share transactions:
Primary A Shares........................... (21,867,306) (71,958,670) 121,967,391 309,726,636 (253,994,363)
Primary B Shares........................... 5,736,112 6,594,237 26,709,258 5,186,022 13,807,295
Investor A Shares.......................... 3,120,407 7,946,497 11,536,708 2,463,849 4,824,423
Investor B Shares.......................... 867,166 10,359,559 4,280,295 -- 6,554,887
Investor C Shares.......................... 262,475 673,023 1,479,950 -- 2,759,406
------------ ------------ -------------- ------------ ------------
Net increase/(decrease) in net assets........ (21,630,659) (66,176,008) 258,470,572 382,635,153 (288,626,262)
NET ASSETS:
Beginning of year............................ 237,427,517 434,385,524 1,146,791,883 192,482,640 902,311,873
------------ ------------ -------------- ------------ ------------
End of year.................................. $215,796,858 $368,209,516 $1,405,262,455 $575,117,793 $ 613,685,611
============ ============ ============== ============ ============
Undistributed net investment income at end of
year....................................... $ 63,372 $ 146,073 $ 271,371 $ -- $ 99,716
============ ============ ============== ============ ============
<CAPTION>
NATIONS NATIONS NATIONS
DISCIPLINED EMERGING SMALL COMPANY
EQUITY GROWTH GROWTH
FUND FUND FUND(a)
------------------------------------------
<S> <C> <C> <C>
Net investment income/(loss)................. $ 756,136 $ (1,329,587) $ 364,419
Net realized gain on investments............. 25,522,798 34,454,446 (1,681,500)
Change in unrealized
appreciation/(depreciation) of
investments................................ (3,229,620) (30,383,696) 13,621,363
------------ ------------ ------------
Net increase in net assets resulting from
operations................................. 23,049,314 2,741,163 12,304,282
Distributions to shareholders from net
investment income:
Primary A Shares........................... (812,678) -- (361,933)
Primary B Shares........................... (1,649) -- --
Investor A Shares.......................... (32,042) -- (8,336)
Investor B Shares.......................... -- -- (591)
Investor C Shares.......................... (61) -- --
Distributions to shareholders from net
realized gain on investments:
Primary A Shares........................... (9,585,919) (27,305,634) (357,391)
Primary B Shares........................... (91,846) (59,072) --
Investor A Shares.......................... (528,226) (1,061,416) (12,306)
Investor B Shares.......................... (1,571,314) (3,332,013) (9,752)
Investor C Shares.......................... (30,729) (97,646) --
Net increase/(decrease) in net assets from
Fund share transactions:
Primary A Shares........................... (24,812,393) (4,477,335) 28,069,972
Primary B Shares........................... 1,089,022 3,259,671 --
Investor A Shares.......................... 1,668,358 5,544,043 703,694
Investor B Shares.......................... 552,434 1,782,278 482,145
Investor C Shares.......................... 142,101 635,028 --
------------ ------------ ------------
Net increase/(decrease) in net assets........ (10,965,628) (22,370,933) 40,809,784
NET ASSETS:
Beginning of year............................ 139,886,755 339,490,827 74,973,068
------------ ------------ ------------
End of year.................................. $128,921,127 $317,119,894 $115,782,852
============ ============ ============
Undistributed net investment income at end of
year....................................... $ -- $ -- $ 890
============ ============ ============
</TABLE>
- ---------------
(a) Formerly the Pilot Small Capitalization Equity Fund. The period reflects
operations from September 1, 1996 through May 16, 1997 (Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
NATIONS BALANCED ASSETS FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 1,603,703 $ 18,281,513 3,829,498 $ 44,702,059
Issued in exchange for Pilot Shares of
Pilot Equity Income Fund (Note 9)........ -- -- -- --
Issued as reinvestment of dividends........ 1,313,417 14,166,269 2,138,736 24,087,846
Redeemed................................... (2,833,756) (32,467,092) (7,888,635) (90,657,211)
----------- ------------ ----------- ------------
Net increase/(decrease).................... 83,364 $ (19,310) (1,920,401) $(21,867,306)
=========== ============ =========== ============
PRIMARY B SHARES:
Sold....................................... 224,717 $ 2,513,118 547,555 $ 6,317,399
Issued as reinvestment of dividends........ 52,849 568,138 4,338 48,794
Redeemed................................... (127,410) (1,462,132) (54,663) (630,081)
----------- ------------ ----------- ------------
Net increase/(decrease).................... 150,156 $ 1,619,124 497,230 $ 5,736,112
=========== ============ =========== ============
INVESTOR A SHARES:
Sold....................................... 183,318 $ 2,072,911 319,807 $ 3,637,712
Issued in exchange for Class A Shares of
Pilot Equity Income Fund (Note 9)........ -- -- -- --
Issued as reinvestment of dividends........ 91,668 988,142 101,995 1,144,997
Redeemed................................... (169,270) (1,976,335) (144,535) (1,662,302)
----------- ------------ ----------- ------------
Net increase............................... 105,716 $ 1,084,718 277,267 $ 3,120,407
=========== ============ =========== ============
INVESTOR B SHARES:
Sold....................................... 147,280 $ 1,682,564 132,981 $ 1,549,286
Issued in exchange for Class B Shares of
Pilot Equity Income Fund (Note 9)........ -- -- -- --
Issued as reinvestment of dividends........ 615,727 6,593,625 852,851 9,553,149
Redeemed................................... (445,579) (5,016,846) (881,717) (10,235,269)
----------- ------------ ----------- ------------
Net increase............................... 317,428 $ 3,259,343 104,115 $ 867,166
=========== ============ =========== ============
INVESTOR C SHARES:
Sold....................................... 91,770 $ 1,015,799 32,683 $ 379,832
Issued as reinvestment of dividends........ 20,640 220,462 17,917 200,277
Redeemed................................... (46,865) (530,318) (26,954) (317,634)
----------- ------------ ----------- ------------
Net increase............................... 65,545 $ 705,943 23,646 $ 262,475
=========== ============ =========== ============
<CAPTION>
NATIONS EQUITY INCOME FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
-----------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 2,460,666 $ 31,571,363 5,493,997 $ 70,367,708
Issued in exchange for Pilot Shares of
Pilot Equity Income Fund (Note 9)........ 10,971,724 110,795,138 -- --
Issued as reinvestment of dividends........ 803,335 9,759,521 1,788,758 22,091,931
Redeemed................................... (4,536,528) (59,691,554) (12,511,675) (164,418,309)
----------- ------------ ------------ -------------
Net increase/(decrease).................... 9,699,197 $ 92,434,468 (5,228,920) $ (71,958,670)
=========== ============ ============ =============
PRIMARY B SHARES:
Sold....................................... 54,228 $ 689,087 581,119 $ 7,285,073
Issued as reinvestment of dividends........ 37,808 458,355 10,429 127,760
Redeemed................................... (145,119) (1,889,318) (64,160) (818,596)
----------- ------------ ------------ -------------
Net increase/(decrease).................... (53,083) $ (741,876) 527,388 $ 6,594,237
=========== ============ ============ =============
INVESTOR A SHARES:
Sold....................................... 370,862 $ 4,763,829 681,422 $ 8,856,816
Issued in exchange for Class A Shares of
Pilot Equity Income Fund (Note 9)........ 355,685 4,273,069 -- --
Issued as reinvestment of dividends........ 350,103 4,242,015 682,371 8,392,448
Redeemed................................... (536,593) (6,888,832) (707,574) (9,302,767)
----------- ------------ ------------ -------------
Net increase............................... 540,057 $ 6,390,081 656,219 $ 7,946,497
=========== ============ ============ =============
INVESTOR B SHARES:
Sold....................................... 286,128 $ 3,758,378 347,847 $ 4,549,473
Issued in exchange for Class B Shares of
Pilot Equity Income Fund (Note 9)........ 408,886 4,799,238 -- --
Issued as reinvestment of dividends........ 792,233 9,559,083 1,645,356 20,181,935
Redeemed................................... (1,044,754) (13,735,036) (1,111,287) (14,371,849)
----------- ------------ ------------ -------------
Net increase............................... 442,493 $ 4,381,663 881,916 $ 10,359,559
=========== ============ ============ =============
INVESTOR C SHARES:
Sold....................................... 450,145 $ 6,182,050 81,457 $ 1,089,046
Issued as reinvestment of dividends........ 37,258 454,840 75,113 929,638
Redeemed................................... (43,821) (555,291) (100,800) (1,345,661)
----------- ------------ ------------ -------------
Net increase............................... 443,582 $ 6,081,599 55,770 $ 673,023
=========== ============ ============ =============
</TABLE>
- ---------------
(a) Nations Balanced Assets Fund's and Nations Equity Income Fund's Primary B
Shares commenced operations on June 28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 32
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS VALUE FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 6,432,077 $ 124,116,312 29,322,532 $ 511,605,757
Issued in exchange for Pilot Shares of
Pilot Growth and Income Fund (Note 9).... 17,843,256 257,840,470 -- --
Issued as reinvestment of dividends........ 2,308,111 43,289,282 3,289,592 58,525,164
Redeemed................................... (14,347,578) (294,845,749) (25,604,738) (448,163,530)
----------- ------------- ----------- -------------
Net increase............................... 12,235,866 $ 130,400,315 7,007,386 $ 121,967,391
=========== ============= =========== =============
PRIMARY B SHARES:
Sold....................................... 158,862 $ 2,978,624 1,816,714 $ 31,661,762
Issued as reinvestment of dividends........ 73,360 1,362,711 43,152 768,906
Redeemed................................... (661,023) (13,390,483) (316,121) (5,721,410)
----------- ------------- ----------- -------------
Net increase/(decrease).................... (428,801) $ (9,049,148) 1,543,745 $ 26,709,258
=========== ============= =========== =============
INVESTOR A SHARES:
Sold....................................... 964,980 $ 19,113,004 1,008,873 $ 17,617,492
Issued in exchange for Class A Shares of
Pilot Growth and Income Fund (Note 9).... 436,043 7,325,371 -- --
Issued as reinvestment of dividends........ 322,525 9,564,224 313,372 5,573,438
Redeemed................................... (502,193) (9,830,597) (661,226) (11,654,222)
----------- ------------- ----------- -------------
Net increase/(decrease).................... 1,221,355 $ 26,172,002 661,019 $ 11,536,708
=========== ============= =========== =============
INVESTOR B SHARES:
Sold....................................... 102,426 $ 2,867,837 487,075 $ 8,412,470
Issued in exchange for Class B Shares of
Pilot Growth and Income Fund (Note 9).... 310,528 5,141,987 -- --
Issued as reinvestment of dividends........ 421,740 12,751,285 455,824 8,073,126
Redeemed................................... (627,021) (13,428,034) (697,591) (12,205,301)
----------- ------------- ----------- -------------
Net increase............................... 207,673 $ 7,333,075 245,308 $ 4,280,295
=========== ============= =========== =============
INVESTOR C SHARES:
Sold....................................... 99,557 $ 1,955,737 175,986 $ 3,020,176
Issued as reinvestment of dividends........ 327,182 7,166,169 27,497 485,883
Redeemed................................... (74,882) (1,433,918) (116,991) (2,026,109)
----------- ------------- ----------- -------------
Net increase............................... 351,857 $ 7,687,988 86,492 $ 1,479,950
=========== ============= =========== =============
<CAPTION>
NATIONS EQUITY INDEX FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
------------------------ ---------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 5,937,482 $106,789,545 40,225,078 $ 580,368,542
Issued in exchange for Pilot Shares of
Pilot Growth and Income Fund (Note 9).... -- -- -- --
Issued as reinvestment of dividends........ 269,175 5,042,132 517,996 7,964,898
Redeemed................................... (5,067,034) (93,736,283) (19,227,462) (278,606,804)
---------- ------------ ----------- -------------
Net increase............................... 1,139,623 $ 18,095,394 21,515,612 $ 309,726,636
========== ============ =========== =============
PRIMARY B SHARES:
Sold....................................... 109,578 $ 2,023,792 663,406 $ 10,427,520
Issued as reinvestment of dividends........ 1,948 36,021 1,599 25,530
Redeemed................................... (204,985) (3,884,766) (318,456) (5,267,028)
---------- ------------ ----------- -------------
Net increase/(decrease).................... (93,459) $ (1,824,953) 346,549 $ 5,186,022
========== ============ =========== =============
INVESTOR A SHARES:
Sold....................................... 74,836 $ 1,387,565 333,277 $ 5,286,564
Issued in exchange for Class A Shares of
Pilot Growth and Income Fund (Note 9).... -- -- -- --
Issued as reinvestment of dividends........ 934 17,516 866 13,492
Redeemed................................... (99,196) (1,647,077) (178,866) (2,836,207)
---------- ------------ ----------- -------------
Net increase/(decrease).................... (23,426) $ (241,996) 155,277 $ 2,463,849
========== ============ =========== =============
INVESTOR B SHARES:
Sold.......................................
Issued in exchange for Class B Shares of
Pilot Growth and Income Fund (Note 9)....
Issued as reinvestment of dividends........
Redeemed...................................
Net increase...............................
INVESTOR C SHARES:
Sold.......................................
Issued as reinvestment of dividends........
Redeemed...................................
Net increase...............................
</TABLE>
- ---------------
(a) Nations Value Fund's and Nations Equity Index Fund's Primary B Shares
commenced operations on June 28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 33
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS CAPITAL GROWTH FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
--------------------------- ---------------------------
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 2,625,651 $ 32,371,669 15,753,137 $ 192,039,483
Issued in exchange for Pilot Shares of
Pilot Growth Fund (Note 9)............... -- -- -- --
Issued in exchange for Primary A Shares of
the Peachtree Equity Fund................ -- -- 6,613,086 95,758,235
Issued as reinvestment of dividends........ 4,141,461 46,858,221 2,411,051 13,926,195
Redeemed................................... (13,608,341) (169,876,773) (41,713,535) (555,718,276)
----------- ------------- ----------- -------------
Net increase/(decrease).................... (6,841,229) $ (90,646,883) (16,936,261) $(253,994,363)
=========== ============= =========== =============
PRIMARY B SHARES:
Sold....................................... 62,234 $ 750,182 1,263,951 $ 16,621,006
Issued as reinvestment of dividends........ 112,411 1,269,119 107,692 1,306,298
Redeemed................................... (584,849) (7,475,183) (313,240) (4,120,009)
----------- ------------- ----------- -------------
Net increase/(decrease).................... (410,204) $ (5,455,882) 1,058,403 $ 13,807,295
=========== ============= =========== =============
INVESTOR A SHARES:
Sold....................................... 1,195,599 $ 14,833,881 530,791 $ 7,132,768
Issued in exchange for Class A Shares of
Pilot Growth Fund (Note 9)............... -- -- -- --
Issued as reinvestment of dividends........ 214,606 2,420,750 374,048 4,532,192
Redeemed................................... (1,089,653) (13,621,246) (517,176) (6,840,537)
----------- ------------- ----------- -------------
Net increase/(decrease).................... 320,552 $ 3,633,385 387,663 $ 4,824,423
=========== ============= =========== =============
INVESTOR B SHARES:
Sold....................................... 81,766 $ 995,944 170,735 $ 2,258,704
Issued in exchange for Class B Shares of
Pilot Growth Fund (Note 9)............... -- -- -- --
Issued as reinvestment of
dividends................................ 478,855 5,291,351 829,556 9,896,604
Redeemed................................... (292,811) (3,551,081) (430,513) (5,600,421)
----------- ------------- ----------- -------------
Net increase............................... 267,740 $ 2,736,214 569,778 $ 6,554,887
=========== ============= =========== =============
INVESTOR C SHARES:
Sold....................................... 77,779 $ 949,097 267,345 $ 3,391,862
Issued as reinvestment of dividends........ 63,377 702,225 90,327 1,077,600
Redeemed................................... (118,065) (1,403,406) (133,084) (1,710,056)
----------- ------------- ----------- -------------
Net increase............................... 23,091 $ 247,916 224,588 $ 2,759,406
=========== ============= =========== =============
<CAPTION>
NATIONS DISCIPLINED EQUITY FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------- --------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 1,032,664 $ 20,864,348 1,043,144 $ 19,363,107
Issued in exchange for Pilot Shares of
Pilot Growth Fund (Note 9)............... 2,069,494 30,732,565 -- --
Issued in exchange for Primary A Shares of
the Peachtree Equity Fund................ -- -- -- --
Issued as reinvestment of dividends........ 349,103 6,338,981 269,533 5,025,966
Redeemed................................... (2,423,422) (50,109,922) (2,662,039) (49,201,466)
---------- ------------ ---------- ------------
Net increase/(decrease).................... 1,027,839 $ 7,825,972 (1,349,362) $(24,812,393)
========== ============ ========== ============
PRIMARY B SHARES:
Sold....................................... 7,711 $ 154,510 72,997 $ 1,321,229
Issued as reinvestment of dividends........ 1,546 28,006 1,078 20,122
Redeemed................................... (19,399) (401,933) (13,376) (252,329)
---------- ------------ ---------- ------------
Net increase/(decrease).................... (10,142) $ (219,417) 60,699 $ 1,089,022
========== ============ ========== ============
INVESTOR A SHARES:
Sold....................................... 135,979 $ 2,748,512 193,255 $ 3,454,199
Issued in exchange for Class A Shares of
Pilot Growth Fund (Note 9)............... 12,356 232,924 -- --
Issued as reinvestment of dividends........ 40,251 728,522 29,576 548,264
Redeemed................................... (94,472) (1,919,682) (127,280) (2,334,105)
---------- ------------ ---------- ------------
Net increase/(decrease).................... 94,114 $ 1,790,276 95,551 $ 1,668,358
========== ============ ========== ============
INVESTOR B SHARES:
Sold....................................... 98,541 $ 2,020,061 152,010 $ 2,744,026
Issued in exchange for Class B Shares of
Pilot Growth Fund (Note 9)............... 7,838 148,030 -- --
Issued as reinvestment of
dividends................................ 120,701 2,149,685 83,821 1,541,463
Redeemed................................... (95,970) (1,895,799) (206,188) (3,733,055)
---------- ------------ ---------- ------------
Net increase............................... 131,110 $ 2,421,977 29,643 $ 552,434
========== ============ ========== ============
INVESTOR C SHARES:
Sold....................................... 18,178 $ 375,013 8,434 $ 156,195
Issued as reinvestment of dividends........ 3,343 60,344 1,658 30,790
Redeemed................................... (962) (19,893) (2,437) (44,884)
---------- ------------ ---------- ------------
Net increase............................... 20,559 $ 415,464 7,655 $ 142,101
========== ============ ========== ============
</TABLE>
- ---------------
(a) Nations Disciplined Equity Fund's and Nations Capital Growth Fund's Primary
B Shares commenced operations on June 28, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 34
NATIONS FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NATIONS EMERGING GROWTH FUND
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997(a)
------------------------- --------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 1,903,961 $ 26,197,174 6,690,635 $ 96,565,776
Issued in exchange for Pilot Shares of
Pilot Small Capitalization Equity Fund
(Note 9)................................. -- -- -- --
Issued as reinvestment of dividends........ 700,260 9,223,736 1,250,998 17,241,100
Redeemed................................... (4,123,694) (57,707,409) (8,214,473) (118,284,211)
---------- ------------ ---------- -------------
Net increase/(decrease).................... (1,519,473) $(22,286,499) (272,840) $ (4,477,335)
========== ============ ========== =============
PRIMARY B SHARES:
Sold....................................... 84,467 $ 1,140,309 245,436 $ 3,520,560
Issued as reinvestment of dividends........ 10,826 141,940 3,291 45,259
Redeemed................................... (64,404) (954,086) (22,624) (306,148)
---------- ------------ ---------- -------------
Net increase............................... 30,889 $ 328,163 226,103 $ 3,259,671
========== ============ ========== =============
INVESTOR A SHARES:
Sold....................................... 615,059 $ 8,691,198 546,489 $ 7,824,718
Issued in exchange for Class A Shares of
Pilot Small Capitalization Equity Fund
(Note 9)................................. -- -- -- --
Issued as reinvestment of dividends........ 46,546 604,538 77,403 1,054,366
Redeemed................................... (681,494) (9,519,020) (229,441) (3,335,041)
---------- ------------ ---------- -------------
Net increase/(decrease).................... (19,889) $ (223,284) 394,451 $ 5,544,043
========== ============ ========== =============
INVESTOR B SHARES:
Sold....................................... 88,653 $ 1,261,731 269,650 $ 3,748,488
Issued in exchange for Class B Shares of
Pilot Small Capitalization Equity Fund
(Note 9)................................. -- -- -- --
Issued as reinvestment of
dividends................................ 140,430 1,761,010 247,739 3,275,603
Redeemed................................... (237,207) (3,253,988) (376,980) (5,241,813)
---------- ------------ ---------- -------------
Net increase/(decrease).................... (8,124) $ (231,247) 140,409 $ 1,782,278
========== ============ ========== =============
INVESTOR C SHARES:
Sold....................................... 63,615 $ 866,326 68,305 $ 936,567
Issued as reinvestment of
dividends................................ 6,989 87,932 7,368 97,347
Redeemed................................... (34,546) (475,241) (27,993) (398,886)
---------- ------------ ---------- -------------
Net increase............................... 36,058 $ 479,017 47,680 $ 635,028
========== ============ ========== =============
<CAPTION>
NATIONS SMALL COMPANY
GROWTH FUND
PERIOD ENDED
SEPTEMBER 30, 1997(b)(c) PERIOD ENDED
(UNAUDITED) MAY 16, 1997(d)
------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------
<S> <C> <C> <C> <C>
PRIMARY A SHARES:
Sold....................................... 1,376,532 $ 19,051,502 3,463,179 $ 39,823,163
Issued in exchange for Pilot Shares of
Pilot Small Capitalization Equity Fund
(Note 9)................................. 9,065,316 97,384,500 -- --
Issued as reinvestment of dividends........ 494 -- 8,255 96,586
Redeemed................................... (1,003,053) (13,877,486) (1,023,407) (11,849,777)
--------- ------------ --------- ------------
Net increase/(decrease).................... 9,439,289 $102,558,516 2,448,027 $ 28,069,972
========= ============ ========= ============
PRIMARY B SHARES:
Sold.......................................
Issued as reinvestment of dividends........
Redeemed...................................
Net increase...............................
INVESTOR A SHARES:
Sold....................................... 77,885 $ 1,140,152 88,361 $ 1,015,071
Issued in exchange for Class A Shares of
Pilot Small Capitalization Equity Fund
(Note 9)................................. 306,758 3,289,854 -- --
Issued as reinvestment of dividends........ -- -- 1,757 20,377
Redeemed................................... (34,204) (465,774) (28,776) (331,754)
--------- ------------ --------- ------------
Net increase/(decrease).................... 350,439 $ 3,964,232 61,342 $ 703,694
========= ============ ========= ============
INVESTOR B SHARES:
Sold....................................... 39,989 $ 588,531 58,307 $ 660,045
Issued in exchange for Class B Shares of
Pilot Small Capitalization Equity Fund
(Note 9)................................. 219,116 2,344,500 -- --
Issued as reinvestment of
dividends................................ -- -- 676 10,243
Redeemed................................... (223,661) (3,361,270) (16,425) (188,143)
--------- ------------ --------- ------------
Net increase/(decrease).................... 35,444 $ (428,239) 42,558 $ 482,145
========= ============ ========= ============
INVESTOR C SHARES:
Sold....................................... 214,569 $ 3,257,143
Issued as reinvestment of
dividends................................ -- --
Redeemed................................... (189) (2,879)
--------- ------------
Net increase............................... 214,380 $ 3,254,264
========= ============
</TABLE>
- ---------------
(a) Nations Emerging Growth Fund's Primary B Shares commenced operations on June
28, 1996.
(b) This period reflects operations from May 17, 1997 through September 30, 1997
(Note 9).
(c) Nations Small Company Growth Fund's Investor C Shares commenced operations
on September 19, 1997.
(d) The Nations Small Company Growth Fund's Primary A Shares (formerly the Pilot
Small Capitalization Equity Fund's Pilot Shares prior to May 17, 1997),
Investor A Shares (formerly the Pilot Small Capitalization Equity Fund's
Class A Shares prior to May 17, 1997) and Investor B Shares (formerly the
Pilot Small Capitalization Equity Fund's Class B Shares prior to May 17,
1997) commenced operations on December 12, 1995.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 35
[THIS PAGE INTENTIONALLY LEFT BLANK]
33
<PAGE> 36
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS BALANCED ASSETS FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $ 11.15 $ 0.17 $ 1.79 $ 1.96 $(0.17)
Year ended 03/31/1997......... 11.65 0.39 1.03 1.42 (0.38)
Period ended 03/31/1996(a).... 12.68 0.11 0.45 0.56 (0.18)
Year ended 11/30/1995......... 10.44 0.38 2.21 2.59 (0.33)
Year ended 11/30/1994......... 10.87 0.25 (0.43) (0.18) (0.25)
Year ended 11/30/1993......... 10.24 0.29 0.64 0.93 (0.30)
Period ended 11/30/1992*...... 10.00 0.06 0.18# 0.24 --
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $ 11.14 $ 0.14 $ 1.78 $ 1.92 $(0.14)
Period ended 03/31/1997*...... 11.87 0.21 0.85 1.06 (0.25)
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $ 11.13 $ 0.15 $ 1.79 $ 1.94 $(0.16)
Year ended 03/31/1997......... 11.64 0.34 1.05 1.39 (0.36)
Period ended 03/31/1996(a).... 12.66 0.11 0.45 0.56 (0.17)
Year ended 11/30/1995......... 10.42 0.34 2.23 2.57 (0.31)
Year ended 11/30/1994......... 10.86 0.22 (0.44) (0.22) (0.22)
Year ended 11/30/1993......... 10.24 0.29 0.62 0.91 (0.29)
Period ended 11/30/1992*...... 10.00 0.01 0.23# 0.24 --
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $ 11.11 $ 0.12 $ 1.78 $ 1.90 $(0.12)
Year ended 03/31/1997......... 11.62 0.29 1.04 1.33 (0.30)
Period ended 03/31/1996(a).... 12.63 0.09 0.45 0.54 (0.14)
Year ended 11/30/1995......... 10.40 0.28 2.22 2.50 (0.25)
Year ended 11/30/1994......... 10.85 0.17 (0.44) (0.27) (0.18)
Period ended 11/30/1993*...... 10.61 0.14 0.23 0.37 (0.13)
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $ 11.08 $ 0.14 $ 1.76 $ 1.90 $(0.13)
Year ended 03/31/1997......... 11.60 0.33 1.02 1.35 (0.33)
Period ended 03/31/1996(a).... 12.61 0.09 0.45 0.54 (0.14)
Year ended 11/30/1995......... 10.38 0.26 2.21 2.47 (0.22)
Year ended 11/30/1994......... 10.82 0.14 (0.43) (0.29) (0.15)
Year ended 11/30/1993......... 10.23 0.23 0.59 0.82 (0.23)
Period ended 11/30/1992*...... 10.00 0.01 0.22# 0.23 --
<CAPTION>
DISTRIBUTION
FROM NET TOTAL NET ASSET
REALIZED DIVIDENDS VALUE
CAPITAL AND END OF
GAINS DISTRIBUTIONS PERIOD
-------------------------------------------
<S> <C> <C> <C>
NATIONS BALANCED ASSETS FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $(1.07) $ (1.24) $ 11.87
Year ended 03/31/1997......... (1.54) (1.92) 11.15
Period ended 03/31/1996(a).... (1.41) (1.59) 11.65
Year ended 11/30/1995......... (0.02) (0.35) 12.68
Year ended 11/30/1994......... -- (0.25) 10.44
Year ended 11/30/1993......... -- (0.30) 10.87
Period ended 11/30/1992*...... -- -- 10.24
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $(1.07) $ (1.21) $ 11.85
Period ended 03/31/1997*...... (1.54) (1.79) 11.14
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $(1.07) $ (1.23) $ 11.84
Year ended 03/31/1997......... (1.54) (1.90) 11.13
Period ended 03/31/1996(a).... (1.41) (1.58) 11.64
Year ended 11/30/1995......... (0.02) (0.33) 12.66
Year ended 11/30/1994......... -- (0.22) 10.42
Year ended 11/30/1993......... -- (0.29) 10.86
Period ended 11/30/1992*...... -- -- 10.24
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $(1.07) $ (1.19) $ 11.82
Year ended 03/31/1997......... (1.54) (1.84) 11.11
Period ended 03/31/1996(a).... (1.41) (1.55) 11.62
Year ended 11/30/1995......... (0.02) (0.27) 12.63
Year ended 11/30/1994......... -- (0.18) 10.40
Period ended 11/30/1993*...... -- (0.13) 10.85
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $(1.07) $ (1.20) $ 11.78
Year ended 03/31/1997......... (1.54) (1.87) 11.08
Period ended 03/31/1996(a).... (1.41) (1.55) 11.60
Year ended 11/30/1995......... (0.02) (0.24) 12.61
Year ended 11/30/1994......... -- (0.15) 10.38
Year ended 11/30/1993......... -- (0.23) 10.82
Period ended 11/30/1992*...... -- -- 10.23
</TABLE>
- ---------------
* Nations Balanced Assets Fund's Primary A, Primary B, Investor A, Investor B
and Investor C Shares commenced operations on September 30, 1992, June 28,
1996, October 2, 1992, June 7, 1993 and October 2, 1992, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of the
portfolio.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
(c) The effect of the fees reduced by credits allowed by the Custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements and net investment income per share was less than 0.01% and
$0.01, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 37
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE AVERAGE NET TURNOVER AVERAGE NET INCOME
RETURN++ (IN 000'S) NET ASSETS ASSETS RATE ASSETS PER SHARE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
18.80% $145,433 1.01%+(c) 3.03%+ 144% 1.01%+(c) $ 0.17(c)
12.50 135,731 1.00(c) 3.31 264 1.00(c) 0.39(c)
4.90 164,215 1.00+ 2.91+ 83 1.00+ 0.11
25.27 163,198 0.99 3.25 174 0.99 0.38
(1.73) 162,215 0.98 2.31 156 0.99 0.25
9.22 178,270 0.90 2.82 50 0.97 0.29
2.40+++ 111,953 0.30+ 3.85+ 79 1.05+ 0.05
18.46% $ 7,672 1.51%+(c) 2.53%+ 144% 1.51%+(c) $ 0.14(c)
9.06 5,537 1.50+(c) 2.81+ 264 1.50+(c) 0.21(c)
18.61% $ 10,904 1.26%+(c) 2.78%+ 144% 1.26%+(c) $ 0.15(c)
12.18 9,075 1.25(c) 3.06 264 1.25(c) 0.34(c)
4.86 6,261 1.25+ 2.66+ 83 1.25+ 0.11
25.01 5,276 1.24 3.00 174 1.24 0.34
(2.02) 4,881 1.23 2.06 156 1.24 0.22
8.93 5,191 1.15 2.57 50 1.22 0.28
2.40+++ 547 0.55+ 3.60+ 79 1.30+ 0.01
18.31% $ 71,875 1.84%+(c) 2.20%+ 144% 1.84%+(c) $ 0.12(c)
11.62 64,058 1.75(c) 2.56 264 1.75(c) 0.29(c)
4.69 65,764 1.75+ 2.16+ 83 1.75+ 0.09
24.35 65,275 1.74 2.50 174 1.74 0.28
(2.51) 52,905 1.73 1.56 156 1.74 0.17
3.45 27,982 1.65+ 2.07+ 50 1.72+ 0.14
18.35% $ 2,257 1.68%+(c) 2.36%+ 144% 1.68%+(c) $ 0.14(c)
11.85 1,396 1.50(c) 2.81 264 1.50(c) 0.33(c)
4.71 1,187 1.62+ 2.29+ 83 1.62+ 0.09
24.03 992 1.99 2.25 174 1.99 0.26
(2.72) 951 1.98 1.31 156 1.99 0.14
8.06 1,196 1.90 1.82 50 1.97 0.22
2.30+++ 156 1.30+ 2.85+ 79 2.05+ 0.01
<CAPTION>
AVERAGE
COMMISSION RATE
PAID(b)
-----------------
<S> <C>
$0.0568
0.0563
0.0598
N/A
N/A
N/A
N/A
$0.0568
0.0563
$0.0568
0.0563
0.0598
N/A
N/A
N/A
N/A
$0.0568
0.0563
0.0598
N/A
N/A
N/A
$0.0568
0.0563
0.0598
N/A
N/A
N/A
N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 38
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND NET INCREASE DIVIDENDS
VALUE NET UNREALIZED IN FROM NET
BEGINNING INVESTMENT GAIN ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS EQUITY INCOME FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $ 12.30 $ 0.14 $ 2.54 $2.68 $(0.15)
Year ended 03/31/1997......... 13.14 0.43 1.55 1.98 (0.41)
Period ended 03/31/1996(a).... 11.81 0.30 1.77 2.07 (0.37)
Year ended 05/31/1995......... 11.43 0.42 1.11 1.53 (0.42)
Year ended 05/31/1994......... 12.06 0.38 0.22 0.60 (0.42)
Year ended 05/31/1993......... 11.41 0.37 1.08 1.45 (0.35)
Year ended 05/31/1992......... 10.19 0.34 1.25 1.59 (0.30)
Period ended 05/31/1991*...... 10.00 0.05 0.14 0.19 --
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $ 12.30 $ 0.14 $ 2.50 $2.64 $(0.12)
Period ended 03/31/1997*...... 13.50 0.25 1.21 1.46 (0.25)
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $ 12.26 $ 0.15 $ 2.51 $2.66 $(0.14)
Year ended 03/31/1997......... 13.11 0.36 1.58 1.94 (0.38)
Period ended 03/31/1996(a).... 11.78 0.27 1.77 2.04 (0.34)
Year ended 05/31/1995......... 11.41 0.40 1.10 1.50 (0.40)
Year ended 05/31/1994......... 12.02 0.37 0.21 0.58 (0.38)
Year ended 05/31/1993......... 11.40 0.34 1.05 1.39 (0.32)
Year ended 05/31/1992......... 10.19 0.29 1.27 1.56 (0.28)
Period ended 05/31/1991*...... 10.04 0.05 0.10 0.15 --
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $ 12.25 $ 0.11 $ 2.50 $2.61 $(0.10)
Year ended 03/31/1997......... 13.10 0.31 1.57 1.88 (0.32)
Period ended 03/31/1996(a).... 11.77 0.22 1.76 1.98 (0.28)
Year ended 05/31/1995......... 11.40 0.34 1.11 1.45 (0.35)
Period ended 05/31/1994*...... 11.98 0.37 0.22 0.59 (0.36)
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $ 12.35 $ 0.10 $ 2.55 $2.65 $(0.11)
Year ended 03/31/1997......... 13.19 0.33 1.59 1.92 (0.35)
Period ended 03/31/1996(a).... 11.83 0.21 1.78 1.99 (0.26)
Year ended 05/31/1995......... 11.47 0.32 1.08 1.40 (0.31)
Year ended 05/31/1994......... 12.04 0.28 0.21 0.49 (0.25)
Period ended 05/31/1993*...... 11.13 0.32 1.32 1.64 (0.28)
<CAPTION>
DISTRIBUTIONS
FROM NET TOTAL NET ASSET
REALIZED DIVIDENDS VALUE
CAPITAL AND END OF
GAINS DISTRIBUTIONS PERIOD
---------------------------------------------------
<S> <C> <C> <C>
NATIONS EQUITY INCOME FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $(1.03) $ (1.18) $ 13.80
Year ended 03/31/1997......... (2.41) (2.82) 12.30
Period ended 03/31/1996(a).... (0.37) (0.74) 13.14
Year ended 05/31/1995......... (0.73) (1.15) 11.81
Year ended 05/31/1994......... (0.81) (1.23) 11.43
Year ended 05/31/1993......... (0.45) (0.80) 12.06
Year ended 05/31/1992......... (0.07) (0.37) 11.41
Period ended 05/31/1991*...... -- -- 10.19
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $(1.03) $ (1.15) $ 13.79
Period ended 03/31/1997*...... (2.41) (2.66) 12.30
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $(1.03) $ (1.17) $ 13.75
Year ended 03/31/1997......... (2.41) (2.79) 12.26
Period ended 03/31/1996(a).... (0.37) (0.71) 13.11
Year ended 05/31/1995......... (0.73) (1.13) 11.78
Year ended 05/31/1994......... (0.81) (1.19) 11.41
Year ended 05/31/1993......... (0.45) (0.77) 12.02
Year ended 05/31/1992......... (0.07) (0.35) 11.40
Period ended 05/31/1991*...... -- -- 10.19
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $(1.03) $ (1.13) $ 13.73
Year ended 03/31/1997......... (2.41) (2.73) 12.25
Period ended 03/31/1996(a).... (0.37) (0.65) 13.10
Year ended 05/31/1995......... (0.73) (1.08) 11.77
Period ended 05/31/1994*...... (0.81) (1.17) 11.40
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $(1.03) $ (1.14) $ 13.86
Year ended 03/31/1997......... (2.41) (2.76) 12.35
Period ended 03/31/1996(a).... (0.37) (0.63) 13.19
Year ended 05/31/1995......... (0.73) (1.04) 11.83
Year ended 05/31/1994......... (0.81) (1.06) 11.47
Period ended 05/31/1993*...... (0.45) (0.73) 12.04
</TABLE>
- ---------------
* Nations Equity Income Fund's Primary A, Primary B, Investor A, Investor B
and Investor C Shares commenced operations on April 11, 1991, June 28, 1996,
April 16, 1991, June 7, 1993 and June 17, 1992, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
(c) The effect of the fees reduced by credits allowed by the Custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements and net investment income per share was less than 0.01% and
$0.01, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 39
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE AVERAGE TURNOVER AVERAGE INCOME/(LOSS) COMMISSION RATE
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE PAID(b)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
23.17% $ 359,043 0.86%+(c) 2.59%+ 31% 0.86%+(c) $ 0.14(c) $0.0601
15.62 200,772 0.91(c) 3.09 102 0.91(c) 0.43(c) 0.0609
17.98 283,142 0.90+ 2.84+ 59 0.90+ 0.30 0.0287
14.79 283,082 0.92 3.75 158 0.93 0.42 N/A
5.00 225,740 0.94 3.41 116 0.95 0.38 N/A
13.30 175,949 0.92 3.37 55 1.04 0.36 N/A
15.91+++ 18,104 1.10 3.15 84 2.21 0.22 N/A
1.90+++ 10,194 1.12+ 3.66+ 9 1.80+ (0.06) N/A
22.78% $ 6,542 1.36%+(c) 2.09%+ 31% 1.36%+(c) $ 0.14(c) $0.0601
11.17 6,484 1.41+(c) 2.59+ 102 1.41+(c) 0.25(c) 0.0609
23.01% $ 61,145 1.11%+(c) 2.34%+ 31% 1.11%+(c) $ 0.15(c) $0.0601
15.30 47,891 1.16(c) 2.84 102 1.16(c) 0.36(c) 0.0609
17.75 42,606 1.15+ 2.59+ 59 1.15+ 0.27 0.0287
14.53 35,538 1.17 3.50 158 1.18 0.40 N/A
4.74 33,691 1.19 3.16 116 1.20 0.37 N/A
12.78 32,760 1.17 3.12 55 1.29 0.33 N/A
15.59+++ 3,418 1.35 2.90 84 2.46 0.18 N/A
1.49+++ 497 1.37+ 3.40+ 9 15.09+ (1.30) N/A
22.65% $ 127,233 1.69%+(c) 1.76%+ 31% 1.69%+(c) $ 0.11(c) $0.0601
14.76 108,055 1.66(c) 2.34 102 1.66(c) 0.31(c) 0.0609
17.21 104,026 1.65+ 2.09+ 59 1.65+ 0.22 0.0287
14.03 75,371 1.67 3.00 158 1.68 0.34 N/A
4.84 46,043 1.69+ 2.66+ 116 1.70+ 0.37 N/A
22.80% $ 11,767 1.53%+(c) 1.92%+ 31% 1.53%+(c) $ 0.10(c) $0.0601
15.01 5,007 1.41(c) 2.59 102 1.41(c) 0.33(c) 0.0609
17.20 4,612 1.75+ 1.99+ 59 1.75+ 0.21 0.0287
13.49 4,278 1.92 2.75 158 1.93 0.32 N/A
3.96 4,221 1.94 2.41 116 1.95 0.28 N/A
15.31 4,377 1.92+ 2.37+ 55 2.04+ 0.31 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 40
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
AND
NET ASSET UNREALIZED NET INCREASE/ DIVIDENDS
VALUE NET GAIN/(LOSS) (DECREASE) IN FROM NET
BEGINNING INVESTMENT ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS VALUE FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $ 17.87 $0.10 $ 4.33 $ 4.43 $(0.11)
Year ended 03/31/1997......... 16.60 0.26 2.69 2.95 (0.26)
Period ended 03/31/1996(a).... 16.21 0.07 1.06 1.13 (0.12)
Year ended 11/30/1995......... 12.98 0.27 3.91 4.18 (0.28)
Year ended 11/30/1994......... 13.74 0.24 (0.23) 0.01 (0.23)
Year ended 11/30/1993......... 12.45 0.24 1.38 1.62 (0.24)
Year ended 11/30/1992......... 11.16 0.28 1.57 1.85 (0.27)
Year ended 11/30/1991......... 9.71 0.34 1.47 1.81 (0.36)
Year ended 11/30/1990......... 10.04 0.35 (0.36) (0.01) (0.32)
Period ended 11/30/1989*#..... 10.00 0.08 (0.04) 0.04 --
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $ 17.87 $0.06 $ 4.32 $ 4.38 $(0.06)
Period ended 03/31/1997*...... 17.19 0.14 2.10 2.24 (0.14)
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $ 17.87 $0.08 $ 4.32 $ 4.40 $(0.08)
Year ended 03/31/1997......... 16.60 0.21 2.70 2.91 (0.22)
Period ended 03/31/1996(a).... 16.21 0.05 1.06 1.11 (0.10)
Year ended 11/30/1995......... 12.98 0.23 3.92 4.15 (0.25)
Year ended 11/30/1994......... 13.72 0.20 (0.20) 0.00 (0.20)
Year ended 11/30/1993......... 12.45 0.22 1.35 1.57 (0.21)
Year ended 11/30/1992......... 11.16 0.26 1.59 1.85 (0.27)
Year ended 11/30/1991......... 9.71 0.34 1.47 1.81 (0.36)
Period ended 11/30/1990*...... 10.04 0.35 (0.36) (0.01) (0.32)
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $ 17.81 $0.04 $ 4.29 $ 4.33 $(0.04)
Year ended 03/31/1997......... 16.55 0.14 2.68 2.82 (0.14)
Period ended 03/31/1996(a).... 16.15 0.03 1.05 1.08 (0.06)
Year ended 11/30/1995......... 12.94 0.17 3.89 4.06 (0.18)
Year ended 11/30/1994......... 13.71 0.15 (0.22) (0.07) (0.16)
Period ended 11/30/1993*...... 13.08 0.11 0.63 0.74 (0.11)
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $ 17.75 $0.05 $ 4.28 $ 4.33 $(0.05)
Year ended 03/31/1997......... 16.50 0.17 2.68 2.85 (0.18)
Period ended 03/31/1996(a).... 16.09 0.04 1.05 1.09 (0.06)
Year ended 11/30/1995......... 12.90 0.13 3.88 4.01 (0.15)
Year ended 11/30/1994......... 13.64 0.12 (0.22) (0.10) (0.10)
Year ended 11/30/1993......... 12.41 0.13 1.32 1.45 (0.13)
Period ended 11/30/1992*...... 11.63 0.07 0.78 0.85 (0.07)
<CAPTION>
DISTRIBUTIONS
FROM NET TOTAL NET ASSET
REALIZED DIVIDENDS VALUE
CAPITAL AND END OF
GAINS DISTRIBUTIONS PERIOD
---------------------------------------------------
<S> <C> <C> <C>
NATIONS VALUE FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $(0.90) $ (1.01) $ 21.29
Year ended 03/31/1997......... (1.42) (1.68) 17.87
Period ended 03/31/1996(a).... (0.62) (0.74) 16.60
Year ended 11/30/1995......... (0.67) (0.95) 16.21
Year ended 11/30/1994......... (0.54) (0.77) 12.98
Year ended 11/30/1993......... (0.09) (0.33) 13.74
Year ended 11/30/1992......... (0.29) (0.56) 12.45
Year ended 11/30/1991......... -- (0.36) 11.16
Year ended 11/30/1990......... -- (0.32) 9.71
Period ended 11/30/1989*#..... -- -- 10.04
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $(0.90) $ (0.96) $ 21.29
Period ended 03/31/1997*...... (1.42) (1.56) 17.87
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $(0.90) $ (0.98) $ 21.29
Year ended 03/31/1997......... (1.42) (1.64) 17.87
Period ended 03/31/1996(a).... (0.62) (0.72) 16.60
Year ended 11/30/1995......... (0.67) (0.92) 16.21
Year ended 11/30/1994......... (0.54) (0.74) 12.98
Year ended 11/30/1993......... (0.09) (0.30) 13.72
Year ended 11/30/1992......... (0.29) (0.56) 12.45
Year ended 11/30/1991......... -- (0.36) 11.16
Period ended 11/30/1990*...... -- (0.32) 9.71
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $(0.90) $ (0.94) $ 21.20
Year ended 03/31/1997......... (1.42) (1.56) 17.81
Period ended 03/31/1996(a).... (0.62) (0.68) 16.55
Year ended 11/30/1995......... (0.67) (0.85) 16.15
Year ended 11/30/1994......... (0.54) (0.70) 12.94
Period ended 11/30/1993*...... -- (0.11) 13.71
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $(0.90) $ (0.95) $ 21.13
Year ended 03/31/1997......... (1.42) (1.60) 17.75
Period ended 03/31/1996(a).... (0.62) (0.68) 16.50
Year ended 11/30/1995......... (0.67) (0.82) 16.09
Year ended 11/30/1994......... (0.54) (0.64) 12.90
Year ended 11/30/1993......... (0.09) (0.22) 13.64
Period ended 11/30/1992*...... -- (0.07) 12.41
</TABLE>
- ---------------
* Nations Value Fund's Primary A, Primary B, Investor A, Investor B and
Investor C Shares commenced operations on September 19, 1989, June 28,
1996, December 6, 1989, June 7, 1993 and June 17, 1992, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with the
results of operations.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
(c) The effect of the fees reduced by credits allowed by the Custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements and net investment income per share was less than 0.01% and
$0.01, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 41
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME TO PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE AVERAGE NET TURNOVER AVERAGE INCOME COMMISSION RATE
RETURN++ (IN 000'S) NET ASSETS ASSETS RATE NET ASSETS PER SHARE PAID(b)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
25.66% $1,691,142 0.94%+(c) 1.13%+ 29% 0.94%+(c) $ 0.10(c) $0.0618
18.07 1,200,853 0.97(c) 1.51 47 0.97(c) 0.26(c) 0.0649
7.20 998,957 0.96+ 1.30+ 12 0.96+ 0.07 0.0648
34.53 956,669 0.94 1.90 63 0.94 0.27 N/A
(0.08) 799,743 0.93 1.85 75 0.93 0.24 N/A
13.19 707,185 0.96 1.98 64 0.97 0.24 N/A
17.00+++ 282,138 0.90 2.31 60 0.97 0.27 N/A
18.79+++ 82,360 0.53 3.33 51 0.99 0.30 N/A
(0.16)+++ 19,769 0.21 4.19 24 1.11 0.26 N/A
0.40+++ 5,161 0.49+ 4.41+ -- 1.41+ 0.06 N/A
25.36% $ 23,739 1.44%+(c) 0.63%+ 29% 1.44%+(c) $ 0.06(c) $0.0618
13.20 27,586 1.47+(c) 1.01+ 47 1.47+(c) 0.14(c) 0.0649
25.52% $ 109,761 1.19%+(c) 0.88%+ 29% 1.19%+(c) $ 0.08(c) $0.0618
17.80 70,305 1.22(c) 1.26 47 1.22(c) 0.21(c) 0.0649
7.07 54,341 1.21+ 1.05+ 12 1.21+ 0.05 0.0648
34.22 48,440 1.19 1.65 63 1.19 0.23 N/A
(0.17) 35,445 1.18 1.60 75 1.18 0.21 N/A
12.80 32,607 1.21 1.73 64 1.22 0.22 N/A
16.96+++ 24,536 1.06 2.15 60 1.15 0.25 N/A
18.79+++ 13,514 0.53 3.33 51 0.99 0.30 N/A
(0.16)+++ 7,020 0.21+ 4.19+ 24 1.11+ 0.26 N/A
25.15% $ 123,457 1.71%+(c) 0.36%+ 29% 1.71%+(c) $ 0.04(c) $0.0618
17.21 99,999 1.72(c) 0.76 47 1.72(c) 0.14(c) 0.0649
6.90 88,861 1.71+ 0.55+ 12 1.71+ 0.03 0.0648
33.55 83,699 1.69 1.15 63 1.69 0.17 N/A
(0.69) 42,530 1.68 1.10 75 1.68 0.15 N/A
5.65 10,449 1.71+ 1.23+ 64 1.72+ 0.11 N/A
25.26% $ 15,192 1.62%+(c) 0.45%+ 29% 1.62%+(c) $ 0.05(c) $0.0618
17.51 6,519 1.47(c) 1.01 47 1.47(c) 0.17(c) 0.0649
6.99 4,633 1.58+ 0.68+ 12 1.58+ 0.04 0.0648
33.15 4,185 1.94 0.90 63 1.94 0.13 N/A
(0.92) 2,983 1.93 0.85 75 1.93 0.12 N/A
11.85 2,997 1.96 0.98 64 1.97 0.13 N/A
7.33+++ 1,286 1.98+ 1.22+ 60 1.98+ 0.07 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 42
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
VALUE NET GAIN/(LOSS) NET INCREASE IN FROM NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT ON NET ASSET VALUE INVESTMENT REALIZED AND END OF
OF PERIOD INCOME INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS EQUITY
INDEX FUND
PRIMARY A
Six months ended
09/30/1997
(unaudited)... $ 15.89 $ 0.14 $ 4.01 $4.15 $(0.13) $ (0.05) $ (0.18) $ 19.86
Year ended
03/31/1997.... 13.58 0.26 2.36 2.62 (0.26) (0.05) (0.31) 15.89
Period ended
03/31/1996(a)... 12.91 0.08 0.86 0.94 (0.13) (0.14) (0.27) 13.58
Year ended
11/30/1995.... 9.84 0.28 3.20 3.48 (0.28) (0.13) (0.41) 12.91
Period ended
11/30/1994*... 10.00 0.24 (0.21) 0.03 (0.19) -- (0.19) 9.84
PRIMARY B
Six months ended
09/30/1997
(unaudited)... $ 15.89 $ 0.10 $ 4.00 $4.10 $(0.08) $ (0.05) $ (0.13) $ 19.86
Period ended
03/31/1997*... 14.13 0.16 1.80 1.96 (0.15) (0.05) (0.20) 15.89
INVESTOR A
Six months ended
09/30/1997
(unaudited)... $ 15.87 $ 0.11 $ 4.00 $4.11 $(0.11) $ (0.05) $ (0.16) $ 19.82
Year ended
03/31/1997.... 13.58 0.25 2.32 2.57 (0.23) (0.05) (0.28) 15.87
Period ended
03/31/1996(a)... 12.91 0.06 0.87 0.93 (0.12) (0.14) (0.26) 13.58
Period ended
11/30/1995*... 12.29 0.03 0.59 0.62 -- -- -- 12.91
</TABLE>
- ---------------
* Nations Equity Index Fund's Primary A, Primary B and Investor A Shares
commenced operations on December 15, 1993, June 28, 1996 and October 10,
1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Average commission rate paid per share of securities purchased and sold by
the Fund.
(c) The effect of the fees reduced by credits allowed by the Custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements and net investment income per share was less than 0.01% and
$0.01, respectively.
(d) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 43
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF
RATIO OF OPERATING RATIO OF
NET ASSETS OPERATING EXPENSES TO NET INVESTMENT
END OF EXPENSES TO AVERAGE NET INCOME TO PORTFOLIO
TOTAL PERIOD AVERAGE ASSETS INCLUDING AVERAGE TURNOVER
RETURN++ (IN 000'S) NET ASSETS INTEREST EXPENSE NET ASSETS RATE
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
26.18% $731,202 0.35%+ (d) 1.49%+ 8%
19.41 567,039 0.35(c) N/A 1.91 5
7.33 192,388 0.35+ 0.35%+ 1.99+ 2
36.35 145,021 0.37 0.38 2.44 18
0.29 123,147 0.35+ N/A 2.64+ 14
25.86% $ 5,028 0.85%+ (d) 0.99%+ 8%
13.93 5,505 0.85+(c) N/A 1.41+ 5
25.94% $ 2,752 0.60%+ (d) 1.24%+ 8%
19.06 2,574 0.60(c) N/A 1.66 5
7.26 95 0.35+ 0.35%+ 1.99+ 2
5.04 11 0.62+ 0.63+ 2.19+ 18
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT AVERAGE
AVERAGE NET INCOME COMMISSION RATE
ASSETS PER SHARE PAID(b)
------------------------------------------------------
<S> <C> <C> <C>
0.66%+ $ 0.11 $0.0276
0.70(c) 0.21(c) 0.0173
0.73+ 0.07 0.0291
0.78 0.23 N/A
0.79+ 0.20 N/A
1.16%+ $ 0.07 $0.0276
1.20+(c) 0.11(c) 0.0173
0.91%+ $ 0.08 $0.0276
0.95(c) 0.20(c) 0.0173
0.73+ 0.05 0.0291
1.03+ 0.02 N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 44
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND
VALUE NET UNREALIZED NET INCREASE IN
BEGINNING INVESTMENT GAIN NET ASSET VALUE
OF PERIOD INCOME/(LOSS) ON INVESTMENTS FROM OPERATIONS
-------------------------------------------------------------
<S> <C> <C> <C> <C>
NATIONS CAPITAL GROWTH FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $11.70 $ 0.02 $ 3.02 $3.04
Year ended 03/31/1997##....... 13.43 0.05 1.66 1.71
Period ended 03/31/1996(a).... 14.24 0.02 0.38 0.40
Year ended 11/30/1995......... 11.23 0.09 3.28 3.37
Year ended 11/30/1994......... 11.08 0.09 0.14 0.23
Year ended 11/30/1993......... 10.68 0.09 0.42 0.51
Period ended 11/30/1992*...... 10.00 0.02 0.66# 0.68
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. $11.68 $ (0.03) $ 3.04 $3.01
Period ended 03/31/1997*##.... 13.96 (0.01) 1.12 1.11
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. $11.67 $ 0.00(b) $ 3.02 $3.02
Year ended 03/31/1997##....... 13.41 0.02 1.65 1.67
Period ended 03/31/1996(a).... 14.22 0.01 0.38 0.39
Year ended 11/30/1995......... 11.21 0.06 3.28 3.34
Year ended 11/30/1994......... 11.06 0.07 0.14 0.21
Year ended 11/30/1993......... 10.67 0.07 0.41 0.48
Period ended 11/30/1992*...... 10.00 0.01 0.66# 0.67
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. $11.47 $ (0.04) $ 2.96 $2.92
Year ended 03/31/1997##....... 13.31 (0.08) 1.63 1.55
Period ended 03/31/1996(a).... 14.15 (0.02) 0.37 0.35
Year ended 11/30/1995......... 11.17 (0.03) 3.27 3.24
Year ended 11/30/1994......... 11.05 (0.01) 0.13 0.12
Period ended 11/30/1993*...... 10.55 (0.01) 0.53 0.52
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. $11.50 $ (0.02) $ 2.96 $2.94
Year ended 03/31/1997##....... 13.26 (0.01) 1.64 1.63
Period ended 03/31/1996(a).... 14.09 0.00(b) 0.36 0.36
Year ended 11/30/1995......... 11.14 (0.03) 3.24 3.21
Year ended 11/30/1994......... 11.01 (0.02) 0.15 0.13
Year ended 11/30/1993......... 10.67 (0.00)(b) 0.38 0.38
Period ended 11/30/1992*...... 10.00 (0.00)(b) 0.67# 0.67
<CAPTION>
DIVIDENDS DISTRIBUTIONS TOTAL
FROM NET FROM NET DIVIDENDS
INVESTMENT REALIZED AND
INCOME CAPITAL GAINS DISTRIBUTIONS
----------------------------------------
<S> <C> <C> <C>
NATIONS CAPITAL GROWTH FUND
PRIMARY A
Six months ended 09/30/1997
(unaudited)................. $(0.01) $ (1.50) $ (1.51)
Year ended 03/31/1997##....... (0.05) (3.39) (3.44)
Period ended 03/31/1996(a).... (0.02) (1.19) (1.21)
Year ended 11/30/1995......... (0.10) (0.26) (0.36)
Year ended 11/30/1994......... (0.08) (0.00)(b) (0.08)
Year ended 11/30/1993......... (0.10) (0.01) (0.11)
Period ended 11/30/1992*...... -- -- --
PRIMARY B
Six months ended 09/30/1997
(unaudited)................. -- $ (1.50) $ (1.50)
Period ended 03/31/1997*##.... -- (3.39) (3.39)
INVESTOR A
Six months ended 09/30/1997
(unaudited)................. -- $ (1.50) $ (1.50)
Year ended 03/31/1997##....... $(0.02) (3.39) (3.41)
Period ended 03/31/1996(a).... (0.01) (1.19) (1.20)
Year ended 11/30/1995......... (0.07) (0.26) (0.33)
Year ended 11/30/1994......... (0.06) (0.00)(b) (0.06)
Year ended 11/30/1993......... (0.08) (0.01) (0.09)
Period ended 11/30/1992*...... -- -- --
INVESTOR B
Six months ended 09/30/1997
(unaudited)................. -- $ (1.50) $ (1.50)
Year ended 03/31/1997##....... -- (3.39) (3.39)
Period ended 03/31/1996(a).... -- (1.19) (1.19)
Year ended 11/30/1995......... -- (0.26) (0.26)
Year ended 11/30/1994......... -- (0.00)(b) (0.00)(b)
Period ended 11/30/1993*...... $(0.02) -- (0.02)
INVESTOR C
Six months ended 09/30/1997
(unaudited)................. -- $ (1.50) $ (1.50)
Year ended 03/31/1997##....... -- (3.39) (3.39)
Period ended 03/31/1996(a).... -- (1.19) (1.19)
Year ended 11/30/1995......... -- (0.26) (0.26)
Year ended 11/30/1994......... -- (0.00)(b) (0.00)(b)
Year ended 11/30/1993......... $(0.03) (0.01) (0.04)
Period ended 11/30/1992*...... -- -- (0.00)(b)
</TABLE>
- ---------------
* The Nations Capital Growth Fund's Primary A, Primary B, Investor A,
Investor B and Investor C Shares commenced operations on September 30,
1992, June 28, 1996, October 2, 1992, June 7, 1993 and October 2, 1992,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
+++ Unaudited.
# The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of
the portfolio.
## Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with the
results of operations.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than $0.01 per share.
(c) Average commission rate paid per share of securities purchased and sold by
the Fund.
(d) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 45
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO NET INVESTMENT
END OF TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER AVERAGE INCOME/(LOSS)
PERIOD RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13.23 28.10% $512,327 0.97%+(d) 0.24%+ 42% 0.97%+ $ 0.02
11.70 11.88 533,168 0.96(d) 0.39 75 0.96 0.05
13.43 3.14 839,300 0.96+ 0.38+ 25 0.96+ 0.02
14.24 30.96 867,361 0.98 0.71 80 0.98 0.09
11.23 2.14 717,914 0.90 0.85 56 0.91 0.09
11.08 4.84 646,661 0.80 0.84 81 0.89 0.08
10.68 6.80+++ 728,629 0.30+ 1.33+ 7 1.05+ 0.01
$ 13.19 27.88% $ 8,548 1.47%+(d) (0.26)%+ 42% 1.47%+ $(0.03)
11.68 7.07 12,367 1.46+(d) (0.11)+ 75 1.46+ (0.01)
$ 13.19 28.00% $ 27,344 1.22%+(d) (0.01)%+ 42% 1.22%+ $ 0.00(b)
11.67 11.58 20,465 1.21(d) 0.14 75 1.21 0.02
13.41 3.02 18,311 1.21+ 0.13+ 25 1.21+ 0.01
14.22 30.70 16,770 1.23 0.46 80 1.23 0.06
11.21 1.93 11,038 1.15 0.60 56 1.16 0.07
11.06 4.56 11,182 1.05 0.59 81 1.14 0.06
10.67 6.70+++ 1,225 0.55+ 1.08+ 7 1.30+ 0.00(b)
$ 12.89 27.58% $ 50,539 1.97%+(d) (0.76)%+ 42% 1.97%+ $(0.04)
11.47 10.68 41,933 1.96(d) (0.61) 75 1.96 (0.08)
13.31 2.77 41,045 1.96+ (0.62)+ 25 1.96+ (0.02)
14.15 29.80 40,868 1.98 (0.29) 80 1.98 (0.03)
11.17 1.12 23,591 1.90 (0.15) 56 1.91 (0.01)
11.05 4.95 9,511 1.80+ (0.16)+ 81 1.89+ (0.02)
$ 12.94 27.70% $ 6,768 1.63%+(d) (0.42)%+ 42% 1.63%+ $(0.02)
11.50 11.39 5,752 1.46(d) (0.11) 75 1.46 (0.01)
13.26 2.86 3,655 1.58+ (0.24)+ 25 1.58+ 0.00(b)
14.09 29.61 3,322 1.98 (0.29) 80 1.98 (0.03)
11.14 1.22 2,394 1.90 (0.15) 56 1.91 (0.02)
11.01 3.61 2,919 1.80 (0.16) 81 1.89 0.00(b)
10.67 6.70+++ 406 1.30+ 0.33+ 7 2.05+ 0.00(b)
<CAPTION>
AVERAGE
COMMISSION RATE
PAID(c)
---------------
<S> <C>
$0.0567
0.0604
0.0632
N/A
N/A
N/A
N/A
$0.0567
0.0604
$0.0567
0.0604
0.0632
N/A
N/A
N/A
N/A
$0.0567
0.0604
0.0632
N/A
N/A
N/A
$0.0567
0.0604
0.0632
N/A
N/A
N/A
N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 46
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND NET INCREASE/ DIVIDENDS
VALUE NET UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) NET ASSET VALUE INVESTMENT
OF PERIOD INCOME/(LOSS) ON INVESTMENTS FROM OPERATIONS INCOME
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATIONS DISCIPLINED EQUITY FUND
PRIMARY A
Six months ended 09/30/1997 (unaudited)...... $18.47 $ 0.04 $ 5.63 $ 5.67 $(0.03)
Year ended 03/31/1997........................ 17.19 0.14 2.79 2.93 (0.14)
Period ended 03/31/1996(a)................... 17.06 0.05 0.35 0.40 (0.04)
Year ended 11/30/1995........................ 13.08 0.10 3.96 4.06 (0.08)
Period ended 11/30/1994*..................... 13.31 0.01 (0.23)# (0.22) (0.01)
Period ended 04/29/1994*..................... 13.65 (0.05) 2.66 2.61 --
Period ended 04/30/1993*..................... 10.00 (0.03) 3.74 3.71 --
PRIMARY B
Six months ended 09/30/1997 (unaudited)...... $18.47 $ (0.01) $ 5.63 $ 5.62 --
Period ended 03/31/1997***................... 17.84 0.03 2.15 2.18 $(0.04)
INVESTOR A
Six months ended 09/30/1997 (unaudited)...... $18.44 $ 0.02 $ 5.61 $ 5.63 $(0.01)
Year ended 03/31/1997........................ 17.16 0.08 2.80 2.88 (0.09)
Period ended 03/31/1996(a)................... 17.04 0.04 0.35 0.39 (0.04)
Year ended 11/30/1995........................ 13.06 0.09 3.96 4.05 (0.07)
Period ended 11/30/1994**.................... 13.30 0.00(b) (0.23)# (0.23) (0.01)
Period ended 04/30/1994**.................... 14.94 (0.04) 1.35 1.31 --
INVESTOR B
Six months ended 09/30/1997 (unaudited)...... $18.20 $ (0.05) $ 5.52 $ 5.47 --
Year ended 03/31/1997........................ 17.00 (0.05) 2.76 2.71 --
Period ended 03/31/1996(a)................... 16.89 (0.01) 0.35 0.34 --
Year ended 11/30/1995........................ 13.02 0.03 3.87 3.90 $(0.03)
Period ended 11/30/1994***................... 12.77 (0.02) 0.28 0.26 (0.01)
INVESTOR C
Six months ended 09/30/1997 (unaudited)...... $18.41 $ (0.02) $ 5.60 $ 5.58 --
Year ended 03/31/1997........................ 17.10 0.04 2.79 2.83 $(0.01)
Period ended 03/31/1996(a)................... 16.97 0.01 0.35 0.36 --
Period ended 11/30/1995***................... 14.08 (0.00)(b) 2.92 2.92 (0.03)
<CAPTION>
DISTRIBUTIONS
NET TOTAL
REALIZED RETURN DIVIDENDS
CAPITAL OF AND
GAINS CAPITAL DISTRIBUTIONS
------------------------------------------
<S> <C> <C> <C>
NATIONS DISCIPLINED EQUITY FUND
PRIMARY A
Six months ended 09/30/1997 (unaudited)...... $(1.97) -- $ (2.00)
Year ended 03/31/1997........................ (1.51) -- (1.65)
Period ended 03/31/1996(a)................... (0.23) -- (0.27)
Year ended 11/30/1995........................ -- -- (0.08)
Period ended 11/30/1994*..................... -- $(0.00)(b) (0.01)
Period ended 04/29/1994*..................... (2.95) -- (2.95)
Period ended 04/30/1993*..................... (0.06) -- (0.06)
PRIMARY B
Six months ended 09/30/1997 (unaudited)...... $(1.97) -- $ (1.97)
Period ended 03/31/1997***................... (1.51) -- (1.55)
INVESTOR A
Six months ended 09/30/1997 (unaudited)...... $(1.97) -- $ (1.98)
Year ended 03/31/1997........................ (1.51) -- (1.60)
Period ended 03/31/1996(a)................... (0.23) -- (0.27)
Year ended 11/30/1995........................ -- -- (0.07)
Period ended 11/30/1994**.................... -- $(0.00)(b) (0.01)
Period ended 04/30/1994**.................... (2.95) -- (2.95)
INVESTOR B
Six months ended 09/30/1997 (unaudited)...... $(1.97) -- $ (1.97)
Year ended 03/31/1997........................ (1.51) -- (1.51)
Period ended 03/31/1996(a)................... (0.23) -- (0.23)
Year ended 11/30/1995........................ -- -- (0.03)
Period ended 11/30/1994***................... -- $(0.00)(b) (0.01)
INVESTOR C
Six months ended 09/30/1997 (unaudited)...... $(1.97) -- $ (1.97)
Year ended 03/31/1997........................ (1.51) -- (1.52)
Period ended 03/31/1996(a)................... (0.23) -- (0.23)
Period ended 11/30/1995***................... -- -- (0.03)
</TABLE>
- ---------------
* The period for the Nations Disciplined Equity Fund's Primary A Shares
reflects operations from April 30, 1994 through November 30, 1994. The
financial information for the fiscal periods through April 29, 1994 is
based on the financial information for The Capitol Mutual Funds Special
Equity Portfolio Class A Shares, which were reorganized into Primary A
Shares of Nations Disciplined Equity Fund (then named Nations Special
Equity Fund) as of the close of business on April 29, 1994. The Capitol
Mutual Funds' Special Equity Portfolio Class A Shares commenced operations
on October 1, 1992.
** The period for the Nations Disciplined Equity Fund's Investor A Shares
reflects operations from April 30, 1994 through November 30, 1994. The
financial information for the fiscal periods through April 29, 1994 is
based on the financial information for The Capitol Mutual Funds Special
Equity Portfolio Class B Shares, which were reorganized into Investor A
Shares of Nations Disciplined Equity Fund (then named Nations Special
Equity Fund) as of the close of business on April 29, 1994. The Capitol
Mutual Funds Special Equity Portfolio Class B Shares commenced operations
on July 26, 1993.
*** The Nations Disciplined Equity Fund's Primary B, Investor B and Investor C
Shares commenced operations on June 28, 1996, May 20, 1994 and May 10,
1995, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# The amount shown at this caption for each share outstanding throughout the
period may not accord with the change in the aggregate gains and losses in
the portfolio securities for the period because of the timing of purchases
and withdrawals of shares in relation to the fluctuating market value of
the portfolio.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than $0.01 per share.
(c) Average commission rate paid per share of securities purchased and sold by
the Fund.
(d) The effect of interest expense on the operating expense ratio was less than
0.01%.
(e) The effect of the fees reduced by credits allowed by the Custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements and net investment income per share was less than 0.01% and
$0.01, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 47
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET ASSET NET ASSETS OPERATING NET INVESTMENT
VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO
END OF TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER
PERIOD RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 22.14 33.13% $ 142,896 0.98%+(d)(e) 0.41%+ 19%
18.47 17.00 100,260 1.04(d) 0.70 120
17.19 2.44 116,469 1.02+ 0.82+ 47
17.06 31.13 109,939 1.30 0.85 124
13.08 (1.62) 9,947 1.13+ 0.12+ 177
13.31 18.79 8,079 1.20+ (0.60)+ 475
13.65 37.13 4,638 1.20+ (0.58)+ 203
$ 22.12 32.79% $ 1,118 1.48%+(d)(e) (0.09)%+ 19%
18.47 12.13 1,121 1.54+(d) 0.20+ 120
$ 22.09 32.94% $ 10,268 1.23%+(d)(e) 0.16%+ 19%
18.44 16.76 6,837 1.29(d) 0.45 120
17.16 2.35 4,722 1.12+ 0.72+ 47
17.04 31.05 3,234 1.40 0.75 124
13.06 (1.71) 252 1.23+ 0.02+ 177
13.30 8.31 165 1.30+ (0.62)+ 475
$ 21.70 32.43% $ 26,997 1.98%+(d)(e) (0.59)%+ 19%
18.20 15.86 20,257 2.04(d) (0.30) 120
17.00 2.08 18,412 2.02+ (0.18)+ 47
16.89 29.94 16,874 2.30 (0.15) 124
13.02 2.02 177 2.09+ (0.84)+ 177
$ 22.02 32.67% $ 986 1.64%+(d)(e) (0.25)%+ 19%
18.41 16.45 446 1.54(d) 0.20 120
17.10 2.19 283 1.65+ 0.19+ 47
16.97 20.78 322 2.30+ (0.15)+ 124
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
----------------------------------
RATIO OF
OPERATING
EXPENSES TO NET INVESTMENT AVERAGE
AVERAGE NET INCOME/(LOSS) COMMISSION RATE
ASSETS PER SHARE PAID(c)
------------------------------------------------------
<S> <C> <C> <C>
0.98%+(e) $ 0.04(e) $0.0250
1.04 0.14 0.0377
1.02+ 0.05 0.0627
1.30 0.10 N/A
1.56+ (0.03) N/A
1.53+ (0.08) N/A
1.31+ (0.03) N/A
1.48%+(e) $(0.01)(e) $0.0250
1.54+ 0.03 0.0377
1.23%+(e) $ 0.02(e) $0.0250
1.29 0.08 0.0377
1.12+ 0.04 0.0627
1.40 0.09 N/A
1.66+ (0.07) N/A
1.74+ (0.07) N/A
1.98%+(e) $(0.05)(e) $0.0250
2.04 (0.05) 0.0377
2.02+ (0.01) 0.0627
2.30 0.03 N/A
2.52+ (0.03) N/A
1.64%+(e) $(0.02)(e) $0.0250
1.54 0.04 0.0377
1.65+ 0.01 0.0627
2.30+ (0.00)(b) N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 48
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED NET INCREASE/
NET ASSET AND (DECREASE) IN DISTRIBUTIONS TOTAL NET ASSET
VALUE NET UNREALIZED IN NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN/(LOSS) ASSET VALUE REALIZED AND END OF
OF PERIOD INCOME/(LOSS) ON INVESTMENTS FROM OPERATIONS CAPITAL GAINS DISTRIBUTIONS PERIOD
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NATIONS EMERGING
GROWTH FUND
PRIMARY A
Six months ended
09/30/1997
(unaudited)............. $ 12.86 $ (0.01) $ 4.67 $ 4.66 $ (0.68) $ (0.68) $ 16.84
Year ended 03/31/1997#.... 14.04 (0.04) 0.20 0.16 (1.34) (1.34) 12.86
Period ended
03/31/1996#(a).......... 14.28 (0.00)(b) 1.26 1.26 (1.50) (1.50) 14.04
Year ended 11/30/1995..... 11.41 0.01 3.26 3.27 (0.40) (0.40) 14.28
Year ended 11/30/1994#.... 10.87 (0.03) 0.71 0.68 (0.14) (0.14) 11.41
Period ended
11/30/1993*............. 10.00 (0.01) 0.89 0.88 (0.01) (0.01) 10.87
PRIMARY B
Six months ended
09/30/1997
(unaudited)............. $ 12.81 $ (0.05) $ 4.65 $ 4.60 $ (0.68) $ (0.68) $ 16.73
Year ended 03/31/1997#*... 15.08 (0.08) (0.85) (0.93) (1.34) (1.34) 12.81
INVESTOR A
Six months ended
09/30/1997
(unaudited)............. $ 12.69 $ (0.04) $ 4.64 $ 4.60 $ (0.68) $ (0.68) $ 16.61
Year ended 03/31/1997#.... 13.91 (0.07) 0.19 0.12 (1.34) (1.34) 12.69
Period ended
03/31/1996#(a).......... 14.17 (0.01) 1.25 1.24 (1.50) (1.50) 13.91
Year ended 11/30/1995..... 11.35 (0.01) 3.23 3.22 (0.40) (0.40) 14.17
Year ended 11/30/1994#.... 10.85 (0.06) 0.70 0.64 0.14) (0.14) 11.35
Period ended
11/30/1993*............. 9.87 (0.03) 1.02 0.99 (0.01) (0.01) 10.85
INVESTOR B
Six months ended
09/30/1997
(unaudited)............. $ 12.29 $ (0.09) $ 4.46 $ 4.37 $ (0.68) $ (0.68) $ 15.98
Year ended 03/31/1997#.... 13.61 (0.18) 0.20 0.02 (1.34) (1.34) 12.29
Period ended
03/31/1996#(a).......... 13.93 (0.05) 1.23 1.18 (1.50) (1.50) 13.61
Year ended 11/30/1995..... 11.24 (0.07) 3.16 3.09 (0.40) (0.40) 13.93
Year ended 11/30/1994#.... 10.82 (0.14) 0.70 0.56 (0.14) (0.14) 11.24
Period ended
11/30/1993*............. 9.88 (0.02) 0.96 0.94 -- -- 10.82
INVESTOR C
Six months ended
09/30/1997
(unaudited)............. $ 12.31 $ (0.02) $ 4.42 $ 4.40 $ (0.68) $ (0.68) $ 16.03
Year ended 03/31/1997#.... 13.56 (0.10) 0.19 0.09 (1.34) (1.34) 12.31
Period ended
03/31/1996#(a).......... 13.87 (0.03) 1.22 1.19 (1.50) (1.50) 13.56
Year ended 11/30/1995..... 11.20 (0.08) 3.15 3.07 (0.40) (0.40) 13.87
Year ended 11/30/1994#.... 10.78 (0.14) 0.70 0.56 (0.14) (0.14) 11.20
Period ended
11/30/1993*............. 9.89 (0.09) 0.98 0.89 -- -- 10.78
</TABLE>
- ---------------
* Nations Emerging Growth Fund's Primary A, Primary B, Investor A, Investor B
and Investor C Shares commenced operations on December 4, 1992, June 28,
1996, December 10, 1992, June 7, 1993 and December 18, 1992, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with the
results of operations.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
(b) Amount represents less than $0.01 per share.
(c) Average commission rate paid per share of securities purchased and sold by
the Fund.
(d) The effect of the fees reduced by credits allowed by the Custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements and net investment income per share was less than 0.01% and
$0.01, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 49
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS AND/OR
EXPENSE REIMBURSEMENTS
------------------------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO NET INVESTMENT AVERAGE
TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER AVERAGE INCOME/(LOSS) COMMISSION RATE
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS PER SHARE PAID(c)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
37.71% $324,588 0.97%+(d) (0.22)%+ 42% 0.97%+(d) $(0.01)(d) $ 0.0444
0.48 267,319 0.98(d) (0.26) 93 0.98(d) (0.04)(d) 0.0562
9.87 295,764 0.99+ (0.06)+ 39 0.99%+ (0.00)(b) 0.0599
29.95 269,484 0.98 0.08 139 0.98 0.01 N/A
6.25 182,459 1.01 (0.29) 129 1.01 (0.03) N/A
8.81 121,281 0.80+ (0.15)+ 159 1.01+ (0.03) N/A
37.38% $ 4,300 1.47%+(d) (0.72)%+ 42% 1.47%+(d) $(0.05)(d) $ 0.0444
(6.80) 2,897 1.48+(d) (0.76)+ 93 1.48+(d) (0.08)(d) 0.0562
37.74% $ 15,533 1.22%+(d) (0.47)%+ 42% 1.22%+(d) $(0.04)(d) $ 0.0444
0.18 12,126 1.23(d) (0.51) 93 1.23(d) (0.07)(d) 0.0562
9.80 7,802 1.24+ (0.31)+ 39 1.24+ (0.01) 0.0599
29.65 5,765 1.23 (0.17) 139 1.23 (0.01) N/A
5.90 3,234 1.26 (0.54) 129 1.26 (0.05) N/A
9.99 2,095 1.05+ (0.40)+ 159 1.26+ (0.04) N/A
37.08% $ 43,204 1.97%+(d) (1.22)%+ 42% 1.97%+(d) $(0.09)(d) $ 0.0444
(0.57) 33,342 1.98(d) (1.26) 93 1.98(d) (0.18)(d) 0.0562
9.52 34,989 1.99+ (1.06)+ 39 1.99+ (0.05) 0.0599
28.75 32,349 1.98 (0.92) 139 1.98 (0.07) N/A
5.17 15,909 2.01 (1.29) 129 2.01 (0.09) N/A
9.51 3,594 1.80+ (1.15)+ 159 2.01+ (0.03) N/A
37.26% $ 2,449 1.64%+(d) (0.89)%+ 42% 1.64%+(d) $(0.02)(d) $ 0.0444
(0.04) 1,437 1.48(d) (0.76) 93 1.48(d) (0.10)(d) 0.0562
9.64 936 1.61+ (0.68)+ 39 1.61+ (0.03) 0.0599
28.67 805 1.98 (0.92) 139 1.98 (0.08) N/A
5.19 542 2.01 (1.29) 129 2.01 (0.12) N/A
9.00 469 1.80+ (1.15)+ 159 2.01+ (0.11) N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 50
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET REALIZED
NET ASSET AND NET INCREASE DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
VALUE NET UNREALIZED IN NET FROM NET FROM NET DIVIDENDS VALUE
BEGINNING INVESTMENT GAIN ASSET VALUE INVESTMENT REALIZED AND END OF
OF PERIOD INCOME ON INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS PERIOD
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONS SMALL
COMPANY GROWTH
FUND
PRIMARY A
Period ended
09/30/1997*#
(unaudited)... $ 12.07 $ 0.01 $ 3.25 $3.26 -- -- -- $ 15.33
Period ended
05/16/97*.... 10.65 0.04 1.47 1.51 $(0.04) $ (0.05) $ (0.09) 12.07
Period ended
08/31/96*.... 10.00 0.09 0.64 0.73 (0.08) -- (0.08) 10.65
INVESTOR A
Period ended
09/30/1997*#
(unaudited)... $ 12.05 $ 0.00(b) $ 3.24 $3.24 -- -- -- $ 15.29
Period ended
05/16/97*.... 10.64 0.03 1.46 1.49 $(0.03) $ (0.05) $ (0.08) 12.05
Period ended
08/31/96*.... 10.00 0.05 0.64 0.69 (0.05) -- (0.05) 10.64
INVESTOR B
Period ended
09/30/1997*#
(unaudited)... $ 12.03 $(0.02) $ 3.21 $3.19 -- -- -- $ 15.22
Period ended
05/16/97*.... 10.65 (0.03) 1.46 1.43 -- $ (0.05) $ (0.05) 12.03
Period ended
08/31/96*.... 10.00 0.01 0.65 0.66 $(0.01) -- (0.01) 10.65
INVESTOR C
Period ended
09/30/1997**#
(unaudited)... $ 15.18 $ 0.00(b) $ 0.15 $0.15 -- -- -- $ 15.33
</TABLE>
- ---------------
* Nations Small Company Growth Fund's Primary A, Investor A and Investor B
Shares commenced operations on May 16, 1997. The financial information for
the fiscal periods through May 16, 1997 are based on the financial
information for the Pilot Small Capitalization Equity Fund's Pilot Shares,
Class A Shares and Class B Shares, which were reorganized into the Primary A
Shares, Investor A Shares and Investor B Shares, respectively, as of the
close of business on May 16, 1997.
** Nations Small Company Growth Fund's Investor C Shares commenced operations
on September 19, 1997.
+ Annualized.
++ Total return represents aggregate total return for the period indicated and
does not reflect the deduction of any applicable sales charges.
# Per share numbers have been calculated using the monthly average share
method, which more appropriately represents the per share data for the
period since use of the undistributed income method did not accord with the
results of operations.
(a) Average commission rate paid per share of securities purchased and sold by
the Fund.
(b) Amount represents less than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 51
NATIONS FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT
CUSTODIAN WITHOUT WAIVERS AND/OR
CREDIT EXPENSE REIMBURSEMENTS
----------- ------------------------------
RATIO OF RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING OPERATING
END OF EXPENSES TO INCOME PORTFOLIO EXPENSES TO EXPENSES TO NET INVESTMENT
TOTAL PERIOD AVERAGE TO AVERAGE TURNOVER AVERAGE AVERAGE LOSS
RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE NET ASSETS NET ASSETS PER SHARE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
38.24% $144,706 0.96%+ 0.22%+ 15% 0.97%+ 1.29%+ $(0.01)
14.21 109,450 0.98+ 0.54+ 48 -- 1.41+ --
7.37 70,483 1.00+ 1.06+ 31 -- 1.54+ --
38.12% $ 5,359 1.21%+ (0.03)%+ 15% 1.22%+ 1.54%+ $(0.02)
13.98 3,697 1.23+ 0.30+ 48 -- 1.66+ --
6.88 2,611 1.25+ 0.66+ 31 -- 1.65+ --
37.61% $ 540 1.71%+ (0.53)%+ 15% 1.72%+ 2.04%+ $(0.04)
13.43 2,635 1.97+ (0.45)+ 48 -- 2.41+ --
6.65 1,878 2.01+ (0.07)+ 31 -- 2.44+ --
0.99% $ 3,287 1.62%+ (0.44)%+ 15% 1.63%+ 1.95%+ $(0.02)
<CAPTION>
AVERAGE
COMMISSION RATE
PAID(a)
---------------
<S> <C>
$0.0540
0.0323
0.0340
$0.0540
0.0323
0.0340
$0.0540
0.0323
0.0340
$0.0540
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 52
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust") and Nations Fund, Inc. (the "Company") are
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as open-end investment companies. As of the date of this report, the
Trust offers thirty-three separate portfolios and the Company offers eight
separate portfolios. Information presented in these financial statements
pertains only to: Nations Balanced Assets Fund, Nations Equity Income Fund,
Nations Value Fund, Nations Equity Index Fund, Nations Capital Growth Fund,
Nations Disciplined Equity Fund, Nations Emerging Growth Fund and Nations Small
Company Growth Fund (each, a "Fund" and collectively, the "Funds"). The
financial statements for the remaining funds of the Trust and the Company are
presented under separate cover. The Funds (except Nations Equity Index Fund)
currently offer five classes of shares: Primary A Shares, Primary B Shares,
Investor A Shares, Investor B Shares (formerly Investor N Shares) and Investor C
Shares. Nations Equity Index Fund currently offers Primary A Shares, Primary B
Shares and Investor A Shares. Shareholders of a Fund have equal voting rights on
matters affecting all shareholders of the Fund. In addition, each class of
shares of a Fund has exclusive voting rights on matters that relate solely to
its class and separate voting rights on matters in which the interests of one
class of shares differ from the interests of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Funds in the preparation of
their financial statements.
Securities Valuation: The Funds' portfolio securities which are traded on a
recognized stock exchange are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sale price
on a national securities market. Securities traded only on over-the-counter
markets (but not including securities reported on the NASDAQ National Market
System) are valued on the basis of the closing over-the-counter bid prices or,
if no sale occurred on such day, at the mean of the current bid and asked
prices. Certain securities may be valued by one or more principal market makers.
Securities reported on the NASDAQ National Market System are valued at the last
sale price on the valuation date. Restricted securities, securities for which
market quotations are not readily available, and other assets are valued by the
investment adviser under the supervision of the Board of Trustees or the Board
of Directors. Short-term investments that mature in 60 days or less are valued
at amortized cost.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions, including joint repurchase agreement transactions in which the
company along with other registered investment companies advised by NationsBanc
Advisors, Inc. ("NBAI"), a wholly-owned subsidiary of NationsBank, N.A.
("NationsBank"), invest their aggregate cash balances in one or more large
repurchase agreements. Under the terms of a typical repurchase agreement, the
Fund takes possession of an underlying debt obligation 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 would be a
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its right to dispose of the collateral securities, including the risk
of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its right. Unless expressly permitted by
the Securities and Exchange Commission, the Fund will not enter into repurchase
agreements with the investment adviser, distributor or any of their affiliates.
The Funds' investment adviser, acting under the supervision of the Board of
Trustees or the Board of Directors, monitors the value of collateral received as
well as the creditworthiness of those banks and dealers with which the Funds
enter into repurchase agreements to evaluate potential risks.
Futures Contracts: The Nations Equity Index Fund may invest in futures
contracts for the purpose of hedging against changes in values of the Fund's
securities or changes in the prevailing levels of interest rates or currency
exchange rates or for gaining exposure to the equity market. Upon entering into
a futures contract, the Fund is required to deposit with the broker an amount of
cash or cash equivalents equal to a certain percentage of the contract amount.
This is known as the "initial margin." Subsequent payments ("variation margin")
are made or received by the Fund each day, depending on the daily fluctuation of
the value of the contract.
50
<PAGE> 53
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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.
Securities Transactions and Investment Income: Securities transactions are
accounted for on a trade date basis. Securities purchased or sold on a
when-issued or delayed-delivery basis may be settled a month or more after the
trade date. Realized gains and losses are computed based on the specific
identification of the securities sold. Interest income, adjusted for accretion
of discounts and amortization of premiums, is earned from settlement date and is
recorded on an accrual basis. Dividend income is recorded on the ex-dividend
date. Each Fund's investment income and realized and unrealized gains and losses
are allocated among its classes based upon the relative net assets of each class
of shares.
Dividends and Distributions to Shareholders: It was the policy of each Fund to
declare and pay dividends from net investment income each calendar quarter.
However, effective July 1, 1997, certain Funds assumed a monthly distribution
cycle. The distribution cycles of the Funds are as follows:
<TABLE>
<CAPTION>
QUARTERLY DISTRIBUTION CYCLE MONTHLY DISTRIBUTION CYCLE
- --------------------------- --------------------------
<S> <C>
Nations Balanced Assets Fund Nations Equity Income Fund
Nations Equity Index Fund Nations Value Fund
Nations Emerging Growth Fund Nations Capital Growth Fund
Nations Disciplined Equity Fund
Nations Small Company Growth Fund
</TABLE>
Each Fund will distribute net realized capital gains (including net short-term
capital gains), annually after the fiscal year in which the income is earned,
unless offset by any available capital loss carryforward. Additional
distributions of net investment income and capital gains may be made at the
discretion of the Board of Trustees or the Board of Directors in order to avoid
application of the 4% non-deductible Federal excise tax. Income distributions
and capital gain distributions on a Fund level determined in accordance with
Federal income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Fund, timing differences and differing characterization of distributions made by
the Fund as a whole.
Federal Income Tax: Each Fund intends to qualify as a 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 applicable.
Expenses: General expenses of the Trust or the Company are allocated to the
relevant Funds based upon relative net assets. Operating expenses directly
attributable to a Fund or class of shares are charged to such Fund's or class'
operations. Expenses of each Fund not directly attributable to the operations of
any class of shares are prorated among the classes based on the relative net
assets of each class of shares.
51
<PAGE> 54
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
Each of the Trust and the Company has, on behalf of its Funds, entered into an
investment advisory agreement (the "Investment Advisory Agreements") with NBAI
pursuant to which NBAI provides investment advisory services to the Funds. Under
the terms of the Investment Advisory Agreements, NBAI is entitled to receive an
advisory fee calculated daily and payable monthly based on the following annual
rates multiplied by the average daily net assets of each Fund:
<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
Nations Small Company Growth Fund................................................ 1.00%
Nations Balanced Assets Fund, Nations Value Fund, Nations Capital Growth Fund,
Nations Disciplined Equity Fund and Nations Emerging Growth Fund............... 0.75%
Nations Equity Index Fund........................................................ 0.50%
</TABLE>
<TABLE>
<CAPTION>
FEES ON
FEES ON ASSETS BETWEEN FEES ON
ASSETS UP TO $100 AND ASSETS EXCEEDING
$100 MILLION $250 MILLION $250 MILLION
------------------------------------------------
<S> <C> <C> <C>
Nations Equity Income Fund............................... 0.75% 0.70% 0.60%
</TABLE>
Each of the Trust and the Company has, on behalf of the Funds, entered into a
sub-advisory agreement (the "Sub-Advisory Agreements") with NBAI and TradeStreet
Investment Associates, Inc. ("TradeStreet"), a wholly-owned subsidiary of
NationsBank. Under the terms of the Sub-Advisory Agreements, TradeStreet is
entitled to receive a sub-advisory fee from NBAI for each Fund at the following
annual rates of each Fund's average daily net assets:
<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
Nations Balanced Assets Fund..................................................... 0.25%
Nations Equity Income Fund....................................................... 0.20%
Nations Value Fund............................................................... 0.25%
Nations Equity Index Fund........................................................ 0.10%
Nations Capital Growth Fund...................................................... 0.25%
Nations Disciplined Equity Fund.................................................. 0.25%
Nations Emerging Growth Fund..................................................... 0.25%
Nations Small Company Growth Fund................................................ 0.25%
</TABLE>
Stephens Inc. ("Stephens") serves as the administrator of the Trust and the
Company pursuant to separate administration agreements (the "Administration
Agreements"). First Data Investor Services Group, Inc. ("First Data"), a
wholly-owned subsidiary of First Data Corporation, serves as the
co-administrator of the Trust and the Company pursuant to co-administration
agreements (the "Co-Administration Agreements"). Pursuant to the Administration
and Co-Administration Agreements, Stephens and First Data are entitled to
receive a combined fee, computed daily and paid monthly, at the annual rate of
0.10% of the Trust's and the Company's Funds. NationsBank serves as the sub-
administrator of the Trust and the Company pursuant to a sub-administration
agreement (the "Sub-Administration Agreement") with Stephens. For the six months
ended September 30, 1997, Stephens earned $1,468,348 from the Funds for its
administration services, of which $191,574 was paid to NationsBank for its
services as sub-administrator.
The investment adviser, sub-adviser and administrator may, from time to time,
voluntarily reduce their fees payable by each Fund. For the six months ended
September 30, 1997, the investment adviser voluntarily waived fees as follows:
<TABLE>
<CAPTION>
FEES WAIVED
BY ADVISER
-----------
<S> <C>
Nations Equity Income Fund......................................................... $ 2,391
Nations Equity Index Fund.......................................................... 1,064,567
Nations Small Company Growth Fund.................................................. 162,700
</TABLE>
NationsBank of Texas, N.A.("NationsBank of Texas" and, collectively with The
Bank of New York ("BONY"), called "Custodians") acts as Custodian of the Trust's
and the Company's assets and, for the six months ended September 30,
52
<PAGE> 55
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
1997, earned $26,389 for providing such services. BONY has entered into an
agreement with each of the Funds and NationsBank of Texas, whereby BONY will
serve as sub-custodian for the Funds. The Trust and the Company accrue a credit
on daily cash balances held at BONY. The earnings credit is applied to the
monthly custody fee. For the six months ended September 30, 1997, the earnings
credit was $11,788.
First Data also serves as the transfer agent for the Funds' shares. NationsBank
of Texas also acts as the sub-transfer agent for the Primary Shares of the Funds
and, for the six months ended September 30, 1997, earned approximately $20,684
for providing such services.
Stephens also serves as distributor of the Funds' shares. For the six months
ended September 30, 1997, the Funds were informed that the distributor received
$286,561 in contingent deferred sales charges from shares which were subject to
such charges. A substantial portion of these fees are paid to affiliates of
NationsBank and NBAI.
No officer, director or employee of NationsBank, NBAI, TradeStreet, Stephens,
First Data or any affiliate thereof, receives any compensation from the Trust or
the Company for serving as a trustee, director or officer of the Trust or the
Company. The Trust and the Company pay each unaffiliated Trustee or Director an
annual fee of $1,000 ($3,000 for the Chairman of the Board), plus $500 per Fund
and an additional $1,000 for each in-person board meeting, and $500 for each
telephonic board meeting attended. The Trust and the Company also reimburse
expenses incurred by each unaffiliated Trustee or Director in attending such
meetings.
The Trust's and the Company's eligible Trustees or Directors, respectively, may
participate in non-qualified deferred compensation and retirement plans which
may be terminated at any time. All benefits provided under these plans are
unfunded and any payments to plan participants are paid solely out of the Funds'
assets. Income earned on each plan participant's deferral account is tied to the
rate of return of the eligible mutual funds selected by the participants or, if
no funds are selected, to the rate of return of Nations Treasury Fund, a fund of
the Company. The expense for the deferred compensation plan is included in
"Trustees'/Directors' Fees and Expenses" in the Statements of Operations.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS.
The Trust and the Company each have a adopted shareholder administration plan
("Administration Plan") for Primary B Shares of each Fund; shareholder servicing
and distribution plans pursuant to Rule 12b-1 under the 1940 Act for Investor A
Shares of each Fund ("Investor A Plan"); a shareholder servicing plan
("Servicing Plan") for Investor B Shares and Investor C Shares of each Fund
(except Nations Equity Index Fund); and a distribution plan ("Distribution
Plan") pursuant to Rule 12b-1 for Investor B Shares and Investor C Shares of
each Fund (except Nations Equity Index Fund) (collectively, the "Plans"). The
Administration Plan permits the Funds to compensate institutions for shareholder
administration services provided to their customers that own Primary B Shares.
The Investor A Plan permits the Funds to compensate (i) servicing agents and
selling agents that have entered into a servicing agreement with the Funds for
services provided to their customers that own Investor A Shares and (ii)
Stephens for distribution-related expenses incurred in connection with Investor
A Shares. The Servicing Plan permits the Funds to compensate servicing agents
for services provided to their customers that own Investor B Shares and Investor
C Shares, respectively. The Distribution Plan permits the Funds to compensate or
reimburse Stephens for any activities or expenses primarily intended to result
in the sale of the Funds' Investor B Shares or Investor C Shares, respectively.
Payments under the Plans are accrued daily and paid monthly at a rate set, from
time to time, by the Funds. Fees incurred pursuant to the Plans are charged as
expenses of each Fund directly to the Primary B Shares, Investor A Shares,
Investor B Shares and Investor C Shares, respectively.
53
<PAGE> 56
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended September 30, 1997, the effective rates incurred by the
Funds, as a percentage of average daily net assets, pursuant to the Plans were
as follows:
<TABLE>
<CAPTION>
PRIMARY B INVESTOR B INVESTOR B INVESTOR C INVESTOR C
ADMINISTRATION INVESTOR A DISTRIBUTION SERVICING DISTRIBUTION SERVICING
FUND PLAN PLAN PLAN* PLAN PLAN* PLAN
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Nations Balanced Assets Fund............. 0.50% 0.25% 0.58% 0.25% 0.42% 0.25%
Nations Equity Income Fund............... 0.50 0.25 0.58 0.25 0.42 0.25
Nations Value Fund....................... 0.50 0.25 0.52 0.25 0.43 0.25
Nations Equity Index Fund................ 0.50 0.25 N/A N/A N/A N/A
Nations Capital Growth Fund.............. 0.50 0.25 0.75 0.25 0.41 0.25
Nations Disciplined Equity Fund.......... 0.50 0.25 0.75 0.25 0.41 0.25
Nations Emerging Growth Fund............. 0.50 0.25 0.75 0.25 0.42 0.25
Nations Small Company Growth Fund........ -- 0.25 0.50 0.25 0.41 0.25
</TABLE>
* The Investor B Distribution Plan and Investor C Distribution Plan rates
changed effective August 1, 1997.
A substantial portion of the fees paid pursuant to the Plans described above are
paid to affiliates of NationsBank and NBAI.
4. PURCHASES AND SALES OF SECURITIES.
The aggregate cost of purchases and proceeds from sales of securities, excluding
U.S. government securities and short-term investments, for the six months ended
September 30, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------------
<S> <C> <C>
Nations Balanced Assets Fund...................................... $232,137,280 $259,211,325
Nations Equity Income Fund........................................ 139,072,483 178,874,386
Nations Value Fund................................................ 515,496,073 642,456,576
Nations Equity Index Fund......................................... 66,248,570 55,344,520
Nations Capital Growth Fund....................................... 258,395,065 425,786,299
Nations Disciplined Equity Fund................................... 31,260,184 60,013,551
Nations Emerging Growth Fund...................................... 138,563,579 164,671,358
Nations Small Company Growth Fund................................. 15,818,807 25,343,315
</TABLE>
The aggregate cost of purchases and proceeds from sales of long-term U.S.
government securities, for the six months ended September 30, 1997, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-----------------------------
<S> <C> <C>
Nations Balanced Assets Fund...................................... $ 82,184,507 $ 62,310,245
Nations Equity Income Fund........................................ 4,237,031 20,436,563
</TABLE>
At September 30, 1997, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes were as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
-----------------------------
<S> <C> <C>
Nations Balanced Assets Fund...................................... $ 10,834,946 $ 2,148,214
Nations Equity Income Fund........................................ 101,565,238 2,271,203
Nations Value Fund................................................ 553,372,687 6,334,696
Nations Equity Index Fund......................................... 254,652,011 2,283,601
Nations Capital Growth Fund....................................... 160,908,685 1,856,056
Nations Disciplined Equity Fund................................... 57,985,294 1,112,753
Nations Emerging Growth Fund...................................... 117,118,704 1,677,789
Nations Small Company Growth Fund................................. 41,979,423 2,267,441
</TABLE>
54
<PAGE> 57
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5. SHARES OF BENEFICIAL INTEREST/CAPITAL STOCK.
As of September 30, 1997, an unlimited number of shares of beneficial interest
without par value were authorized for the Trust and 420,000,000,000 shares of
$.001 par value capital stock were authorized for the Company. The Trust's
Declaration of Trust authorizes the Board of Trustees to classify or reclassify
any authorized, but unissued shares into one or more additional classes or
series of shares. See Schedule of Capital Stock Activity.
6. ORGANIZATION COSTS.
The Funds bear all costs in connection with their organization, including the
fees and expenses of registering and qualifying their shares for distribution
under Federal and state securities regulations. All such costs are being
amortized on a straight-line basis over a period of five years from commencement
of operations. In the event that any of the shares issued by the Funds to their
sponsor prior to the commencement of the Funds' public offering ("initial
shares") are redeemed during such amortization by any holder thereof, the Funds
will be reimbursed by the holder for any unamortized organization costs in the
same proportion as the number of initial shares redeemed bears to the number of
initial shares outstanding at the time of redemption. All such costs for Nations
Equity Income Fund, Nations Value Fund, Nations Disciplined Equity Fund and
Nations Small Company Growth Fund have been fully amortized.
7. LINE OF CREDIT.
The Trust and the Company participate in an uncommitted line of credit provided
by BONY under a line of credit agreement dated February 28, 1997 (the
"Agreement"). Advances under the Agreement are taken primarily for temporary or
emergency purposes, including the meeting of redemption requests that otherwise
might require the untimely disposition of securities. Under the Agreement, each
Fund may borrow up to the lesser of $25 million or 25% of its net assets.
Interest on borrowings is payable at the Federal Funds Rate plus 0.50% on an
annualized basis. The Agreement requires, among other things, that each
participating Fund maintain a ratio of no less than 4 to 1 net assets (not
including funds borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement.
Borrowings for the six months ended September 30, 1997 by the Funds under the
Agreement are disclosed below:
<TABLE>
<CAPTION>
AVERAGE
MAXIMUM AVERAGE DEBT INTEREST RATE
AMOUNT AMOUNT AVERAGE PER ------------- INTEREST
FUND OUTSTANDING OUTSTANDING SHARES SHARE LOW HIGH EXPENSE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Nations Equity Index Fund............. $7,100,000 $ 232,787 37,360,712 $0.01 5.96% 7.37% $7,406
Nations Capital Growth Fund........... 2,100,000 53,552 50,577,031 0.00(a) 6.02 6.14 1,643
Nations Disciplined Equity Fund....... 5,276,000 76,792 8,346,628 0.01 5.96 6.31 2,358
</TABLE>
(a) Amount represents less than $0.01 per share.
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the six months
ended September 30, 1997.
8. LENDING OF PORTFOLIO SECURITIES.
Under an agreement with BONY, dated July 23, 1997, the Funds have the ability to
lend their securities to approved brokers, dealers and other financial
institutions. Loans of portfolio securities are collateralized by cash, in an
amount at least equal to 102% of the market value of the securities on loan.
Generally, in the event of counterparty default, the Fund has the right to use
the collateral to offset losses incurred. There would be a potential loss to the
Fund in the event the Fund is delayed or prevented from exercising its right to
dispose of the collateral.
55
<PAGE> 58
NATIONS FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At September 30, 1997, the following Funds had securities on loan:
<TABLE>
<CAPTION>
FUND MARKET VALUE % OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nations Balanced Assets Fund................................................ $ 9,902,770 4.16%
Nations Equity Income Fund.................................................. 10,501,968 1.86
Nations Value Fund.......................................................... 54,764,241 2.79
Nations Equity Index Fund................................................... 1,943,062 0.26
Nations Capital Growth Fund................................................. 9,208,589 1.52
Nations Emerging Growth Fund................................................ 16,791,921 4.30
Nations Small Company Growth Fund........................................... 9,657,353 6.28
</TABLE>
9. REORGANIZATIONS.
On May 16, 1997 and May 23, 1997, certain Nations Funds, as listed below (each
an "Acquiring Fund"), acquired the assets and certain liabilities of The Pilot
Funds, also listed below (each an "Acquired Fund"), in a tax-free 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, the total net assets of each Acquiring
Fund after the acquisition and any unrealized appreciation included in the
Acquired Fund's total net assets at the acquisition date are as follows:
<TABLE>
<CAPTION>
VALUE OF TOTAL NET
SHARES SHARES TOTAL NET TOTAL NET ASSETS OF
ISSUED BY ISSUED BY ASSETS OF ASSETS OF ACQUIRING
ACQUIRING ACQUIRED ACQUISITION ACQUIRING ACQUIRING ACQUIRED ACQUIRING FUND AFTER
FUND FUND DATE FUND FUND FUND FUND ACQUISITION
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Nations
Equity Pilot Equity
Income Fund Income Fund 05/16/97 11,736,295 $141,496,141 $141,496,141 $ 380,383,623 $ 521,879,764
Pilot Growth
Nations and Income
Value Fund Fund 05/16/97 18,589,827 340,919,486 340,919,486 1,483,907,876 1,824,827,362
Nations
Disciplined Pilot Growth
Equity Fund Fund 05/16/97 2,089,688 37,750,653 37,750,653 134,469,491 172,220,144
Nations Small Pilot Small
Company Capitalization
Growth Fund Equity Fund 05/23/97 9,591,190 115,782,852 115,782,852 -- 115,782,852
<CAPTION>
ACQUIRED
FUND
ACQUIRING UNREALIZED
FUND APPRECIATION
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Nations
Equity
Income Fund $21,628,696
Nations
Value Fund 70,611,659
Nations
Disciplined
Equity Fund 6,637,133
Nations Small
Company
Growth Fund 16,953,786
</TABLE>
56
<PAGE> 59
[GRAPHIC DEPICTING BASKETS]
<PAGE> 60
--------------------
[NATIONS FUND LOGO BULK RATE
U.S. POSTAGE
PAID
P.O. Box 32602 N READING, MA
Charlotte NC 28234-4602 PERMIT NO.
Toll Free 1-800-982-2271 105
--------------------
SAR1 97495 9/97
