<PAGE> 1
[GRAPHIC: Photo of rowers] Nations Prime Fund
Nations
Treasury Fund
Nations
Government Money
Market Fund
Nations
Tax Exempt Fund
MONEY
MARKET FUNDS
SEMIANNUAL REPORT FOR THE PERIOD
ENDED SEPTEMBER 30, 2000
[NATIONS FUNDS LOGO]
<PAGE> 2
This Report is submitted for the general information of shareholders of Nations
Funds. This material must be preceded or accompanied by a current Nations Funds
prospectus.
Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of
America N.A., is not a bank, and securities offered by it are not guaranteed by
any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC.
Nations Funds Investment adviser: Banc of America Advisors, Inc.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 3
PRESIDENTS' MESSAGE
Dear Shareholder:
The six-month period ended September 30, 2000 proved
to be quite unsettling for mutual fund investors.
Several factors led to turbulence in U.S. and
overseas markets. The Federal Reserve Board's
practice of increasing interest rates in an attempt
to slow down the economy and keep inflation at bay
took a toll on the stock market. Oil prices soared
over the summer causing concern across the country as
several cities saw gas prices above $2.00 per gallon.
The slowing economy affected earnings at a number of
leading U.S. companies, causing additional volatility
in the stock market. Overseas, the European Central
Bank raised interest rates in August -- the fifth
rate hike this year -- and the euro fell to a record
low. In Japan, the Bank of Japan increased interest
rates for the first time in a decade, adding
additional strain to an economy that has struggled
over the last several years.
The only seemingly bright spot for investors during
the past six months has been in the bond market.
Because of the federal government's budget surplus,
the U.S. Treasury has had to buy back many of its
long-term securities. The shortage in long-term
securities has generally increased returns on these
securities, resulting in an inversion of the yield
curve -- whereby short-term securities are yielding
more than many longer-term securities. This is the
first time in a long time that most bond sectors have
outperformed both the Standard & Poor's 500 Composite
Stock Price Index and the Nasdaq Composite Index*.
Now, you're probably asking yourself "Is this a good
time to invest in stocks or bonds?" We think the
answer is "Yes." While stocks of all sizes have
historically outperformed bonds over the long-term,
and bonds have performed well this year, a broadly
diversified portfolio -- one consisting of both
stocks and bonds -- can help you weather market
volatility. Remember that the financial markets tend
to be cyclical and while one asset class or
investment style may be the flavor of the month, it
could be out of favor the next.
It's also important to note that volatility tends to
keep some investors on the sidelines. But waiting for
the right time to invest may result in missed
opportunities. Disciplined investing requires staying
invested through market highs and lows. Investors can
also take advantage of dollar cost averaging** during
volatile times -- the practice of systematic
investing where you seek to buy more shares when
prices are low and fewer shares when prices are high,
resulting in a lower average share price over time.
Remaining invested and regularly investing is key.
Whether it's growth vs. value, large cap vs. small
cap, stocks vs. bonds, or U.S. vs. international, no
single investment style alone will assure that you
achieve your long-term financial goals. We believe
diversification is the key to long-term success and
an investment professional can help you create a
portfolio best suited to your risk tolerance and
investment time horizon.
*The Standard & Poor's 500 Composite Stock Price
Index is an unmanaged index of 500 widely held
common stocks. It is unavailable for investment. The
Nasdaq Composite Index tracks the performance of
domestic common stocks traded on the regular Nasdaq
market as National Market System traded foreign
stocks and ADRs. It is unmanaged and unavailable for
investment.
**Dollar cost averaging does not ensure a profit or
protect against a loss in a declining market. You
should carefully consider your ability to make
regular investments through periods of fluctuating
market
conditions.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
PRESIDENTS' MESSAGE CONTINUED...
At Nations Funds, we strongly believe in the value of
advice. An investment professional can provide you
with market research and analysis, years of
investment experience, and work with you to determine
the best strategy for surviving short-term volatility
and successfully reaching your long-term goals.
We remain committed to providing you with world-class
investment management and competitive products to
help you reach your long-term goals. Should you have
any questions or comments on your semiannual report,
please contact your investment professional or call
us at 1.800.321.7854. You can also visit us online at
www.nations-funds.com.
Thank you for being a part of the Nations Funds
family.
Sincerely,
/s/ A. Max Walker
A. MAX WALKER
PRESIDENT AND CHAIRMAN OF THE BOARD
NATIONS FUNDS
/s/ Robert H. Gordon
ROBERT H. GORDON
PRESIDENT
BANC OF AMERICA ADVISORS, INC.
September 30, 2000
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<S> <C>
NATIONS FUNDS SPECTRUM 2
FINANCIAL STATEMENTS
Statements of net assets
Nations Prime Fund 3
Nations Treasury Fund 6
Nations Government Money Market Fund 8
Nations Tax Exempt Fund 9
Statements of operations 25
Statements of changes in net assets 26
Statement of cash flows 28
Schedules of capital stock activity 29
Financial highlights 32
Notes to financial statements 40
</TABLE>
<TABLE>
<S> <C>
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NATIONS FUNDS [DALBAR LOGO]
RECOGNIZED FOR
OUTSTANDING DALBAR, Inc., is a well-respected
CUSTOMER SERVICE research firm that measures
customer service levels and
IN RECOGNITION OF ITS COMMITMENT TO establishes benchmarks in the
PROVIDE SHAREHOLDERS WITH THE financial services industry.
HIGHEST LEVEL OF CUSTOMER SERVICE
IN THE MUTUAL FUND INDUSTRY,
NATIONS FUNDS RECEIVED THE DALBAR
MUTUAL FUND SERVICE AWARD IN 1999.
------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
THE NATIONS FUNDS FAMILY OF FUNDS
LOWER RISK/REWARD POTENTIAL
MONEY MARKET FUNDS
Nations Prime Fund
Nations Cash Reserves
Nations Money Market Reserves
Nations Government Money Market Fund
Nations Government Reserves
Nations Treasury Fund
Nations Treasury Reserves
Nations Tax Exempt Fund
Nations Municipal Reserves
Nations California Tax-Exempt Reserves
FIXED INCOME FUNDS
INCOME FUNDS
Nations High Yield Bond Fund
Nations Strategic Income Fund
Nations U.S. Government Bond Fund
Nations Government Securities Fund
Nations Bond Fund
Nations Intermediate Bond Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund
TAX-EXEMPT INCOME FUNDS
Nations Municipal Income Fund
Nations State-Specific Long-Term Municipal
Bond Funds (CA, FL, GA, KS,
MD, NC, SC, TN, TX, VA)
Nations Intermediate Municipal Bond Fund
Nations State-Specific Intermediate Municipal
Bond Funds (FL, GA, MD,
NC, SC, TN, TX, VA)
Nations Short-Term Municipal Income Fund
DOMESTIC EQUITY FUNDS
GROWTH FUNDS
Nations Small Company Fund
Nations Marsico 21st Century Fund
Nations MidCap Growth Fund
Nations Marsico Focused Equities Fund
Nations Aggressive Growth Fund
Nations Capital Growth Fund
Nations Strategic Growth Fund
Nations Blue Chip Fund
GROWTH AND INCOME FUNDS
Nations Marsico Growth & Income Fund
Nations Value Fund
Nations Equity Income Fund
Nations Asset Allocation Fund
Nations Balanced Assets Fund
Nations Convertible Securities Fund
INTERNATIONAL FUNDS
Nations Emerging Markets Fund
Nations Marsico International Opportunities Fund
Nations International Equity Fund
Nations International Value Fund
HIGHER RISK/REWARD POTENTIAL
INDEX FUNDS
Nations Managed Index Fund
Nations LargeCap Index Fund
Nations MidCap Index Fund
Nations SmallCap Index Fund
ASSET ALLOCATION PORTFOLIOS
Nations LifeGoal Balanced Growth Portfolio
Nations LifeGoal Growth Portfolio
Nations LifeGoal Income and Growth Portfolio
2
<PAGE> 7
NATIONS FUNDS
Nations Prime Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 21.5%
BANK NOTES -- 9.7%
Bank One, N.A.
$ 75,000 6.650%(+) 10/02/00(++).............. $ 74,976
35,000 6.709%(+) 12/21/00(++).............. 35,003
25,000 7.170% 05/08/01..................... 25,000
First Union National Bank
75,000 6.890%(+) 10/02/00(++).............. 75,000
50,000 6.740%(+) 11/30/00(++).............. 50,000
100,000 Key Bank, N.A.
6.630%(+) 11/29/00(++)............ 99,976
25,000 National City Bank Cleveland
6.730% 02/09/01................... 24,996
133,000 SouthTrust Bank, N.A.
6.650%(+) 10/02/00(++)............ 132,925
25,000 US Bank, N.A.
6.635%(+) 12/26/00(++)............ 24,994
----------
542,870
----------
CERTIFICATES OF DEPOSIT --
DOMESTIC -- 0.9%
50,000 Allfirst Bank
6.620%(+) 10/09/00(++)............ 50,000
----------
CERTIFICATES OF
DEPOSIT -- EURO -- 0.9%
50,000 Westdeutsche Landesbanken,
Girozentrale, (London)
6.740% 02/28/01................... 50,000
----------
CERTIFICATES OF DEPOSIT --
YANKEE -- 10.0%
38,000 Barclays Bank plc, (New York)
6.680% 02/12/01................... 37,993
50,000 Bayerische Hypotheken und
Vereinsbank AG, (New York)
6.580%(+) 10/02/00(++)............ 49,972
43,000 Bayerische Landesbank Girozentrale,
(New York)
6.540%(+) 12/15/00................ 42,989
50,000 Canadian Imperial Bank of Commerce,
(New York)
6.618%(+) 10/02/00(++)............ 49,980
Commerzbank AG, (New York)
25,000 6.700% 02/20/01..................... 24,995
50,000 6.750% 02/22/01..................... 49,991
25,000 Credit Locale de France/Credit
Communal de Belgique, (New York)
5.960% 10/02/00................... 25,000
Deutsche Bank AG, (New York)
50,000 6.150% 10/10/00..................... 50,000
25,000 6.700% 02/28/01..................... 24,995
50,000 6.700% 03/14/01..................... 49,989
50,000 Landesbank Hessen-Thuringen
Girozentrale, (New York)
6.885% 04/30/01................... 49,996
25,000 National Bank of Canada, (New York)
6.750% 02/09/01................... 24,997
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT -- YANKEE -- (CONTINUED)
Rabobank Nederland, (New York)
$ 50,000 6.490% 01/29/01..................... $ 49,992
25,000 6.600% 02/01/01..................... 24,996
----------
555,885
----------
TOTAL BANK OBLIGATIONS
(Cost $1,198,755)................. 1,198,755
----------
CORPORATE OBLIGATIONS -- 69.9%
COMMERCIAL PAPER -- 35.4%
25,000 Amstel Funding Corporation
Discount note 12/14/00............ 24,666
40,998 Aon Corporation
Discount note 10/26/00............ 40,812
AT&T Corporation
50,000 Discount note 03/15/01............ 48,514
100,000 7.270% 06/14/01#.................. 100,000
Atlantis One Funding Corporation
25,000 6.525% 02/13/01#.................. 24,388
60,479 Discount note 02/15/01#........... 58,967
150,000 Concord Minutemen Capital Company
LLC
Discount note 10/12/00#........... 149,699
50,000 Crown Point Capital Company LLC
Discount note 02/23/01#........... 48,679
Falcon Asset Securitization
Corporation
100,000 Discount note 10/20/00#........... 99,656
50,000 Discount note 10/25/00#........... 49,783
25,528 Discount note 10/31/00............ 25,389
Galaxy Funding Corporation
50,000 6.530% 10/31/00#.................. 49,728
50,000 Discount note 12/15/00#........... 49,322
50,000 GE Capital International Funding,
Inc.
Discount note 02/20/01#........... 48,718
25,000 General Electric Capital Services,
Inc.
Discount note 02/14/01............ 24,384
50,000 Greyhawk Funding LLC
6.550% 01/31/01#.................. 48,890
75,000 Jupiter Securitization Corporation
Discount note 10/13/00............ 74,837
Mitsubishi International Corporation
25,000 Discount note 11/09/00............ 24,823
50,000 Discount note 01/29/01............ 48,900
MOAT Funding LLC
50,000 Discount note 12/07/00............ 49,377
62,500 Discount note 12/14/00#........... 61,636
25,000 6.550% 02/14/01#.................. 24,381
50,000 6.500% 02/26/01#.................. 48,664
25,000 Discount note 03/22/01#........... 24,227
Moriarty Ltd.
50,000 Discount note 02/07/01............ 48,819
50,000 Discount note 02/14/01............ 48,767
80,000 Discount note 02/20/01#........... 77,946
50,000 Ness LLC
6.570% 02/16/01#.................. 48,741
100,000 North Coast Funding LLC
Discount note 10/30/00#........... 99,472
51,705 Park Avenue Receivables
6.510% 10/13/00#.................. 51,593
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS FUNDS
Nations Prime Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$ 50,000 Salomon Smith Barney Holdings Inc.
Discount note 10/31/00............ $ 49,729
50,000 Surrey Funding Corporation
6.510% 10/26/00#.................. 49,774
Tannehill Capital Company LLC
93,803 Discount note 10/12/00#........... 93,616
60,572 Discount note 10/13/00#........... 60,440
25,170 Discount note 10/25/00#........... 25,060
50,000 Victory Receivables Corporation
Discount note 10/10/00#........... 49,918
23,076 World Omni Vehicle Leasing, Inc.
Discount note 12/12/00............ 22,775
----------
1,975,090
----------
CORPORATE BONDS AND NOTES -- 34.5%
50,000 American Honda Finance Corporation
6.620%(+) 10/09/00(++)............ 50,000
100,000 AT&T Corporation
6.751%(+) 10/13/00(++)##.......... 100,000
25,000 Bank One Corporation
6.714%(+) 12/07/00................ 25,001
Bear, Stearns and Company, Inc.
75,000 6.750%(+) 10/02/00(++)............ 75,000
50,000 6.810%(+) 10/02/00(++)............ 50,000
50,000 6.670%(+) 10/30/00(++)............ 50,000
50,000 Beta Finance, Inc.
7.210% 05/08/01##................. 50,000
50,000 British Telecommunications plc
6.600%(+) 10/27/00(++)............ 49,990
40,000 Caterpillar, Inc.
6.700%(+) 12/01/00(++)............ 40,000
50,000 CC (USA) Inc.
7.470% 05/31/01##................. 50,000
75,000 CIT Group Inc.
6.650%(+) 10/02/00(++)............ 74,976
50,000 Constellation Energy Group
6.739%(+) 12/21/00(++)............ 50,000
Credit Suisse First Boston, Inc.
15,000 6.759%(+) 10/01/00##.............. 15,000
35,000 6.759%(+) 10/01/00................ 35,000
Goldman Sachs Group, Inc.
100,000 6.961%(+) 11/01/00(++)##.......... 100,038
25,000 6.840% 02/15/01(--)............... 25,000
25,000 6.800% 02/27/01(--)............... 25,000
25,000 6.830% 06/04/01(--)............... 25,000
50,000 Household Finance Corporation
6.690%(+) 10/16/00(++)............ 50,000
60,000 K2 (USA) LLC
7.200% 07/16/01##................. 60,000
Lehman Brothers Holdings Inc.
50,000 6.840%(+) 10/02/00(++)............ 50,000
17,000 6.853%(+) 10/02/00(++)............ 17,014
15,500 6.879%(+) 10/04/00(++)............ 15,528
50,000 6.500% 12/01/00................... 49,947
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Links Finance LLC
$ 10,000 6.290% 10/18/00##................. $ 10,000
25,000 6.708%(+) 11/16/00##.............. 25,000
15,000 6.630%(+) 12/15/00(++)............ 14,996
Merrill Lynch and Company
30,000 6.750%(+) 10/02/00(++)............ 29,996
25,000 6.750%(+) 10/02/00(++)............ 24,997
50,000 6.934%(+) 11/06/00(++)............ 50,037
Morgan Stanley Dean Witter and
Company
100,000 6.646%(+) 10/16/00(++)............ 100,000
50,000 6.760%(+) 12/15/00(++)............ 50,000
114,000 SBC Communications Inc.
6.661%(+) 11/01/00(++)##.......... 113,970
25,000 Sigma Finance, Inc.
6.743%(+) 10/03/00(++)##.......... 25,000
50,000 SMM Trust Series 2000-A
6.640%(+) 10/16/00(++)............ 50,000
75,000 SMM Trust Series 2000-E
6.641%(+) 10/16/00(++)##.......... 75,000
25,000 U.S. Bancorp
6.674%(+) 10/20/00(++)............ 25,008
200,000 Unilever Capital Corporation
6.683%(+) 10/09/00(++)##.......... 200,000
----------
1,926,498
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,901,588)................. 3,901,588
----------
FUNDING AGREEMENTS -- 4.0%
Anchor National Life Insurance
Company
50,000 6.890%(+) 10/02/00(++)(--)........ 50,000
25,000 6.839%(+) 12/01/00(++)(--)........ 25,000
50,000 First Allmerica Financial Life
Insurance Company
6.760%(+) 11/24/00(--)............ 50,000
25,000 GE Life and Annuity Assurance
Company
6.599%(+) 10/02/00(++)(--)........ 25,000
50,000 Sun America Life Insurance Company
of America
6.869%(+) 10/02/00(++)(--)........ 50,000
25,000 Travelers Life Insurance Company
6.688%(+) 10/05/00(++)(--)........ 25,000
----------
TOTAL FUNDING AGREEMENTS
(Cost $225,000)................... 225,000
----------
REPURCHASE AGREEMENTS -- 4.2%
90,000 Agreement with Goldman Sachs and
Company, 6.730% dated 09/29/00 to
be repurchased at $90,050 on
10/02/00 collateralized by:
$92,350 Various Commercial Paper,
discount note -
6.510% due 10/05/00 - 12/07/00.... 90,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS FUNDS
Nations Prime Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$100,000 Agreement with J.P. Morgan
Securities Inc., 6.780% dated
09/29/00 to be repurchased at
$100,057 on 10/02/00
collateralized by: $102,000 Euro
Certificate of Deposit,
6.590% due 12/05/00............... $ 100,000
42,307 Agreement with Lehman Brothers Inc.,
6.800% dated 09/29/00 to be
repurchased at $42,331 on 10/02/00
collateralized by: $43,155 Various
Commercial Paper, discount note
due 11/16/00 - 03/22/01........... 42,307
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $232,307)................... 232,307
----------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $5,557,650*)....... 99.6% 5,557,650
----------
OTHER ASSETS AND
LIABILITIES (NET)........ 0.4%
Receivable for investment
securities sold................. $ 250,817
Receivable for Fund shares sold... 89,549
Interest receivable............... 46,163
Payable for Fund shares
redeemed........................ (82,858)
Investment advisory fee payable... (957)
Administration fee payable........ (370)
Shareholder servicing and
distribution fees payable....... (828)
Due to custodian.................. (10)
Distributions payable............. (21,506)
Payable for investment securities
purchased....................... (257,687)
Accrued Trustees'/Directors' fees
and expenses.................... (229)
Accrued expenses and other
liabilities..................... (901)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)........................... 21,183
----------
NET ASSETS................. 100.0% $5,578,833
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................ $ (654)
Paid-in capital................... 5,579,487
----------
NET ASSETS........................ $5,578,833
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
PRIMARY A SHARES:
($3,215,027,427 / 3,215,511,016
shares outstanding)............. $1.00
=====
PRIMARY B SHARES:
($11,220,073 / 11,223,769 shares
outstanding).................... $1.00
=====
INVESTOR A SHARES:
($558,274,738 / 558,380,146 shares
outstanding).................... $1.00
=====
INVESTOR B SHARES:
($717,458,469 / 717,570,564 shares
outstanding).................... $1.00
=====
INVESTOR C SHARES:
($5,504,670 / 5,506,663 shares
outstanding).................... $1.00
=====
DAILY SHARES:
($1,055,003,215 / 1,055,404,504
shares outstanding)............. $1.00
=====
MARSICO SHARES:
($16,344,141 / 16,344,210 shares
outstanding).................... $1.00
=====
</TABLE>
---------------
<TABLE>
<C> <S>
* Aggregate cost for federal tax purposes.
(+) Floating rate security. The interest rate shown reflects the
rate in effect at September 30, 2000.
(++) Reset date. Interest rates reset either daily, weekly,
monthly, quarterly or semi-annually.
(--) Restricted Security (Note 5).
# Security not registered under the Securities Act of 1933, as
amended. These securities may be resold in transactions
exempt from registration to qualified institutional buyers.
## Security exempt from registration under Rule 144A of the
Securities Act of 1933, as amended. These securities may be
resold in transactions exempt from registration to qualified
institutional buyers.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS FUNDS
Nations Treasury Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 15.6%
U.S. TREASURY NOTES -- 15.6%
$ 20,000 4.000% 10/31/00..................... $ 19,969
50,000 5.750% 11/15/00..................... 49,971
25,000 5.375% 02/15/01..................... 24,906
25,000 5.000% 04/30/01..................... 24,751
55,000 6.250% 04/30/01..................... 54,855
25,000 5.625% 05/15/01..................... 24,884
25,000 5.250% 05/31/01..................... 24,776
20,000 5.500% 07/31/01..................... 19,870
25,000 6.500% 08/31/01..................... 25,009
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $268,991)................... 268,991
----------
REPURCHASE AGREEMENTS -- 84.4%
333,944 Agreement with ABN AMRO Inc., 6.510%
dated 09/29/00 to be repurchased
at $334,125 on 10/02/00
collateralized by: $248,114 U.S.
Treasury Strips, Interest Only,
due 05/15/04 - 08/15/16; $92,509
U.S. Treasury Strips, Principal
Only, due 11/15/15 - 11/15/18..... 333,944
70,000 Agreement with Barclays Capital
Inc., 6.500% dated 09/29/00 to be
repurchased at $70,038 on 10/02/00
collateralized by: $29,953 U.S.
Treasury Note, 6.500% due
05/31/01; $41,448 U.S. Treasury
Bond, 11.750% due 12/15/01........ 70,000
70,000 Agreement with Bear, Stearns and
Company, Inc., 6.650% dated
09/29/00 to be repurchased at
$70,039 on 10/02/00 collateralized
by: $61,006 GNMA, 7.500% - 8.000%
due 05/15/30 - 09/15/30; $10,801
GNMA II, 8.000% due 08/20/30...... 70,000
50,000 Agreement with Credit Suisse First
Boston Corporation, 6.630% dated
09/29/00 to be repurchased at
$50,028 on 10/02/00 collateralized
by: $48,876 GNMA, 6.500% - 11.000%
due 01/15/02 - 02/15/30; $2,146
GNMA II, 7.000% due 09/20/29...... 50,000
70,000 Agreement with Deutsche Bank
Securities Inc., 6.450% dated
09/29/00 to be repurchased at
$70,038 on 10/02/00 collateralized
by: $71,400 U.S. Treasury Bonds,
6.625% - 9.125% due 02/15/07 -
02/15/27.......................... 70,000
70,000 Agreement with First Union
Securities, Inc., 6.650% dated
09/29/00 to be repurchased at
$70,039 on 10/02/00 collateralized
by: $71,400 GNMA, 5.500% - 8.250%
due 09/15/23 - 09/15/30........... 70,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 70,000 Agreement with Goldman Sachs and
Company, 6.530% dated 09/27/00 to
be repurchased at $70,076 on
10/03/00 collateralized by:
$71,400 GNMA, 6.000% - 14.000% due
11/15/00 - 09/15/30............... $ 70,000
70,000 Agreement with J.P. Morgan
Securities Inc., 6.480% dated
09/29/00 to be repurchased at
$70,038 on 10/02/00 collateralized
by: $40,897 U.S. Treasury Notes,
5.875% - 7.500% due 11/15/01 -
11/15/04; $19,051 U.S. Treasury
Bonds, 10.375% - 10.750% due
05/15/03 - 11/15/12; $11,453 U.S.
Treasury Bill, discount note due
01/25/01.......................... 70,000
70,000 Agreement with Lehman Brothers Inc.,
6.550% dated 09/29/00 to be
repurchased at $70,038 on 10/02/00
collateralized by: $71,381 U.S.
Treasury Notes, 6.500% - 6.750%
due 05/15/05 - 02/15/10........... 70,000
70,000 Agreement with Morgan Stanley Dean
Witter and Company, 6.470% dated
09/27/00 to be repurchased at
$70,075 on 10/03/00 collateralized
by: $71,470 U.S. Treasury Strip,
Principal Only, due 11/15/26...... 70,000
70,000 Agreement with Salomon Smith Barney
Inc., 6.375% dated 09/29/00 to be
repurchased at $70,037 on 10/03/00
collateralized by: $36,788 U.S.
Treasury Notes, 5.625% - 6.625%
due 06/30/01 - 09/30/01; $17,256
U.S. Treasury Bond, 12.500% due
08/15/14; $17,398 U.S. Treasury
Bill, discount note due
01/25/01.......................... 70,000
300,000 Agreement with Salomon Smith Barney
Inc., 6.650% dated 09/29/00 to be
repurchased at $300,166 on
10/02/00 collateralized by:
$1,375,990 GNMA, 5.500% - 9.000%
due 01/20/23 - 05/15/30........... 300,000
70,000 Agreement with UBS Warburg, 6.520%
dated 09/29/00 to be repurchased
at $70,038 on 10/02/00
collateralized by: $71,403 U.S.
Treasury Note, 3.875% due
01/15/09.......................... 70,000
70,000 Agreement with Westdeutsche
Landesbank, Girozentrale, 6.480%
dated 09/29/00 to be repurchased
at $70,038 on 10/02/00
collateralized by: $36,359 U.S.
Treasury Bonds, 6.500% - 11.125%
due 08/15/03 - 11/15/26; $35,059
U.S. Treasury Note, 7.500% due
02/15/05.......................... 70,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,453,944)................. 1,453,944
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS FUNDS
Nations Treasury Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,722,935*)........ 100.0% $ 1,722,935
-----------
OTHER ASSETS AND LIABILITIES
(NET)..................... 0.0%
Receivable for investment
securities sold.................. $ 1,339,639
Receivable for Fund shares sold.... 5,872
Interest receivable................ 5,752
Payable for Fund shares redeemed... (7,637)
Investment advisory fee payable.... (318)
Administration fee payable......... (113)
Shareholder servicing and
distribution fees payable........ (342)
Due to custodian................... (25)
Distributions payable.............. (7,703)
Payable for investment securities
purchased........................ (1,333,813)
Accrued Trustees'/Directors' fees
and expenses..................... (156)
Accrued expenses and other
liabilities...................... (477)
-----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ 679
-----------
NET ASSETS.................. 100.0% $ 1,723,614
===========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................. $ (191)
Paid-in capital.................... 1,723,805
-----------
NET ASSETS......................... $ 1,723,614
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
PRIMARY A SHARES:
($488,610,743 / 488,907,095 shares
outstanding)..................... $1.00
=====
PRIMARY B SHARES:
($9,269,843 / 9,276,507 shares
outstanding)..................... $1.00
=====
INVESTOR A SHARES:
($935,246,591 / 935,826,288 shares
outstanding)..................... $1.00
=====
INVESTOR B SHARES:
($179,556,363 / 179,669,877 shares
outstanding)..................... $1.00
=====
INVESTOR C SHARES:
($113,815 / 113,869 shares
outstanding)..................... $1.00
=====
DAILY SHARES:
($110,816,761 / 110,909,911 shares
outstanding)..................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS FUNDS
Nations Government Money Market Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 99.7%
FEDERAL FARM CREDIT BANK
(FFCB) -- 2.2%
$ 7,608 6.350% 02/01/01....................... $ 7,603
--------
FEDERAL HOME LOAN BANK (FHLB) -- 87.2%
25,000 6.445%(+) 10/02/00(++)................ 24,984
25,000 6.480%(+) 10/02/00(++)................ 24,986
25,000 6.421%(+) 10/16/00(++)................ 24,985
20,000 6.441%(+) 10/23/00(++)................ 19,990
10,000 6.431%(+) 10/26/00(++)................ 9,994
10,000 6.500% 03/15/01....................... 9,996
30,000 6.660% 04/06/01....................... 29,991
10,000 5.750% 04/30/01....................... 9,940
20,000 6.875% 07/03/01....................... 20,006
7,890 Discount note 10/02/00................ 7,889
5,000 Discount note 10/13/00................ 4,989
56,848 Discount note 10/18/00................ 56,676
32,641 Discount note 10/25/00................ 32,501
10,000 Discount note 01/24/01................ 9,794
10,000 Discount note 05/25/01................ 9,561
--------
296,282
--------
STUDENT LOAN MARKETING ASSOCIATION
(SLMA) -- 10.3%
25,000 6.883%(+) 10/04/00.................... 25,000
10,000 6.863%(+) 10/06/00(++)................ 10,000
--------
35,000
--------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $338,885)..................... 338,885
--------
</TABLE>
<TABLE>
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $338,885*).......... 99.7% 338,885
--------
OTHER ASSETS AND
LIABILITIES (NET)......... 0.3%
Cash................................ $ 1
Receivable for investment securities
sold.............................. 14,856
Receivable for Fund shares sold..... 4
Interest receivable................. 2,817
Payable for Fund shares redeemed.... (6,960)
Investment advisory fee payable..... (39)
Administration fee payable.......... (23)
Shareholder servicing and
distribution fees payable......... (24)
Distributions payable............... (1,654)
Payable for investment securities
purchased......................... (7,886)
Accrued Trustees'/Directors' fees
and expenses...................... (40)
Accrued expenses and other
liabilities....................... (77)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................. 975
--------
NET ASSETS.................. 100.0% $339,860
========
</TABLE>
<TABLE>
<C> <S> <C> <C>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold.................. $ (59)
Paid-in capital..................... 339,919
--------
NET ASSETS.......................... $339,860
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE
PRIMARY A SHARES:
($243,233,494 / 243,272,092 shares
outstanding)...................... $1.00
=====
PRIMARY B SHARES:
($700,232 / 700,587 shares
outstanding)...................... $1.00
=====
INVESTOR A SHARES:
($7,455,369 / 7,457,489 shares
outstanding)...................... $1.00
=====
INVESTOR B SHARES:
($72,372,647 / 72,387,184 shares
outstanding)...................... $1.00
=====
INVESTOR C SHARES:
($466,780 / 466,787 shares
outstanding)...................... $1.00
=====
DAILY SHARES:
($15,631,858 / 15,635,498 shares
outstanding)...................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
(+) Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
(++) Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 100.2%
ALABAMA -- 3.7%
$ 8,265 Alabama Housing Finance Authority
Multi-Family Housing Revenue
Refunding, (Rime Village
Apartments - Hoover Project)
Series 1996A, (FNMA Collateral
Agreement),
5.600% 06/15/26**#................ $ 8,265
10,775 Alabama Housing Finance Authority
Multi-Family Housing Revenue
Refunding, (Rime Village
Apartments - Huntsville Project)
Series 1996B, (FNMA Collateral
Agreement),
5.600% 06/15/26**#................ 10,775
17,400 Alabama Special Care Facilities
Financing Authority Hospital
Revenue, (Montgomery Hospital
Project) Series 1985, (FGIC
Insured, Barclays Bank SBPA),
5.550% 04/01/15**................. 17,400
17,340 Birmingham, Alabama Special Care
Facilities Financing Authority
Revenue, (Baptist Medical Center
Project) Series 2000, (Merrill
Lynch guarantee, Merrill Lynch
SBPA),
5.720% 11/01/02**#................ 17,340
20,400 Daphne, Alabama Special Care
Facilities Financing Authority
Revenue, (Mercy Medical Project)
Series 1997, (AmSouth Bank LOC),
5.550% 12/01/27**................. 20,400
3,800 Gadsen, Alabama Industrial
Development Board PCR Refunding,
(Alabama Power Company Project)
Series 1994,
5.650% 06/01/15**................. 3,800
560 Homewood, Alabama Industrial
Development Board Revenue
Refunding, (Keebler Company
Project) Series 1993, (Bank of
Nova Scotia LOC),
5.550% 11/01/04**................. 560
9,360 Mobile, Alabama ASMS Public
Educational Building Authority
Revenue, (Alabama High School Math
and Science Foundation Project)
Series 1997, (AmSouth Bank of
Alabama LOC),
5.600% 07/01/22**................. 9,360
----------
87,900
----------
ALASKA -- 0.5%
12,500 Alaska Industrial Development and
Export Authority Exempt Facilities
Revenue, (AMAX Gold, Inc. Project)
Series 1997, AMT, (Bank of Nova
Scotia LOC),
5.650% 05/01/09**................. 12,500
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
ARIZONA -- 0.2%
$ 3,700 Goodyear, Arizona Industrial
Development Authority IDR, (Walle
Corporation Project) Series 1995,
AMT, (Bank One Kentucky, N.A.
LOC),
5.600% 05/01/15**#................ $ 3,700
----------
ARKANSAS -- 0.9%
11,500 Crossett, Arkansas PCR Refunding,
(Georgia-Pacific Corporation
Project) Series 1998, (SunTrust
Bank LOC),
5.550% 08/01/04**#................ 11,500
6,300 Little Rock, Arkansas Metrocentre
District Number 1 Improvement
Revenue, (Little Rock Newspapers,
Inc. Project) Series 1985, (Bank
of New York LOC),
5.600% 12/01/25**#................ 6,300
3,250 Lowell, Arkansas IDR, (Little Rock
Newspapers, Inc. Project) Series
1996, AMT, (Bank of New York LOC),
5.600% 06/01/31**#................ 3,250
----------
21,050
----------
CALIFORNIA -- 2.6%
19,725 California Higher Education Loan
Authority Inc. Student Loan
Revenue Refunding, Sr. Lien,
Series 1992A-1, (SLMA Guarantee),
Mandatory Put Bond,
4.400% 07/01/01................... 19,725
10,000 California Higher Education Loan
Authority Inc. Student Loan
Revenue Refunding, Sr. Lien,
Series 1992A-2-6, (SLMA Guarantee)
Mandatory Put 4/01/01,
4.300% 12/01/02................... 10,000
10,000 California Higher Education Loan
Authority Inc. Student Loan
Revenue Refunding, Sr. Lien,
Series 1992A-4, (SLMA Guarantee)
Mandatory Put 04/01/01,
4.350% 03/01/05................... 10,000
1,400 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (American Airlines
Inc. Project) Series 1984C,
(Wachovia Bank of Georgia LOC),
5.500% 12/01/24**................. 1,400
2,200 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (American Airlines
Inc. Project) Series 1984G,
(Wachovia Bank of Georgia LOC),
5.500% 12/01/24**................. 2,200
1,600 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (American Airlines,
Inc. Project) Series 1984D,
(Wachovia Bank of Georgia, N.A.
LOC),
5.500% 12/01/24**................. 1,600
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 3,100 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (Los Angeles
International Airport Project)
Series 1985, (Societe Generale
LOC),
5.500% 12/01/25**................. $ 3,100
13,000 Los Angeles, California Regional
Airports Improvement Corporation
Terminal Facilities Revenue, (LAX
Two Corporation - Los Angeles
International Airport Project)
Series 1989, AMT, (Societe
Generale LOC),
5.550% 12/01/25**................. 13,000
----------
61,025
----------
COLORADO -- 2.8%
5,050 Adams County, Colorado Multi-Family
Housing Revenue, (Hunter's Cove
Project) Series 1985A, (FHLMC
Guarantee),
5.850% 01/15/14**................. 5,050
8,555 Arapahoe County, Colorado
Multi-Family Revenue Refunding,
(Stratford Station Project) Series
1994, (FNMA Collateral Agreement),
5.700% 11/01/17**................. 8,555
9,600 Colorado Housing Finance Authority,
Revenue Refunding, (Multi-Family
Central Park Project) Series 1996,
(FNMA Collateral Agreement),
5.555% 10/15/16**................. 9,600
3,500 Denver City and County, Colorado
Airport Revenue, Series 1992F,
AMT, (Dexia Credit Local de France
LOC),
5.550% 11/15/25**................. 3,500
5,000 Denver City and County, Colorado
Airport Revenue, Series 1992G,
AMT, (Dexia Credit Local de France
LOC),
5.550% 11/15/25**................. 5,000
4,285 Denver City and County, Colorado
Multi-Family Housing Revenue
Refunding, (Regency Park Project)
Series 1989B, (Commerzbank A.G.
LOC),
5.050% 12/15/14**................. 4,285
5,305 El Paso County, Colorado
Multi-Family Housing Revenue
Refunding, (Briarglen Apartments
Project) Series 1995, (FHLMC
Guarantee),
5.700% 12/01/24**#................ 5,305
1,100 Moffat County, Colorado PCR,
(Pacificorp Project) Series 1994,
AMT, (AMBAC Insured, Bank of New
York SBPA),
5.550% 05/01/13**................. 1,100
25,500 Moffat County, Colorado PCR,
(Tri-State Colorado - Utah
Electric Cooperative Project)
Series 1984, (AMBAC Insured,
Societe Generale SBPA),
5.550% 07/01/10**................. 25,500
----------
67,895
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
DELAWARE -- 4.1%
$ 30,000 Delaware State Economic Development
Authority IDR, (Clean Power
Project) Series 1997D, AMT,
(Motiva Enterprises LLC
Guarantee),
5.850% 08/01/29**................. $ 30,000
15,000 Delaware State Economic Development
Authority IDR, (Star Enterprise
Project) Series 1997B, AMT,
(Motiva Enterprises LLC
Guarantee),
5.750% 08/01/29**................. 15,000
7,500 Delaware State Economic Development
Authority Revenue, (Hospital
Billing and Collection Services,
Inc. Project) Series 1985A, (AMBAC
Insured, Morgan Stanley SBPA),
5.650% 12/01/15**................. 7,500
29,850 Delaware State Economic Development
Authority Revenue, (Hospital
Billing and Collection Services,
Inc. Project) Series 1985B, (AMBAC
Insured, Morgan Stanley SBPA),
5.500% 12/01/15**................. 29,850
14,920 Delaware State Economic Development
Authority Revenue, (Hospital
Billing and Collection Services,
Inc. Project) Series 1985C, (AMBAC
Insured, Morgan Stanley SBPA),
5.500% 12/01/15**................. 14,920
----------
97,270
----------
DISTRICT OF COLUMBIA -- 0.3%
6,700 District of Columbia GO, Series
1992A-3, (Societe Generale LOC),
5.600% 10/01/07**................. 6,700
----------
FLORIDA -- 1.5%
11,790 Broward County, Florida Housing
Finance Authority Multi-Family
Housing Revenue, (Harbour Town
Project) Series 1999PT-1166,
(Merrill Lynch Guarantee, Merrill
Lynch SBPA),
5.770% 12/01/25**#(--)............ 11,790
6,100 Dade County, Florida Special
Revenue, (Youth Fair and
Exposition Project) Series 1995,
(SunTrust Bank of Central Florida
LOC),
5.600% 08/01/15**................. 6,100
3,645 Manatee County, Florida Housing
Finance Authority Multi-Family
Mortgage Revenue, (Hampton Court
Project) Series 1989A, (Credit
Suisse First Boston LOC),
5.400% 06/01/07**#................ 3,645
11,900 Miami, Florida Health Facilities
Authority Health Facilities
Revenue, (Miami Jewish Home and
Hospital Project) Series 1996,
(SunTrust Bank Miami LOC),
5.600% 12/01/16**#................ 11,900
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
FLORIDA -- (CONTINUED)
$ 2,750 St. Lucie County, Florida IDR
Refunding, (Florida Convalescent
Centers Project) Series 1988,
(Toronto Dominion Bank LOC),
4.400% 01/01/11**................. $ 2,750
----------
36,185
----------
GEORGIA -- 10.6%
3,100 Bartow County, Georgia Development
Authority PCR, (Georgia Power
Company - Bowden Project) Series
1998,
5.600% 03/01/24**................. 3,100
5,300 Bibb County, Georgia Development
Authority Revenue, (First
Presbyterian Day School Project)
Series 1999, (SunTrust Bank of
Georgia LOC),
5.600% 05/01/19#.................. 5,300
1,500 Burke County, Georgia Development
Authority PCR, (Georgia Power
Company - Vogtle Project) Series
1996,
5.600% 09/01/26**................. 1,500
10,300 Clayton County, Georgia Hospital
Authority Revenue Anticipation
Certificates, (Southern Regional
Medical Center Project) Series
1998B, (SunTrust Bank LOC),
5.600% 08/01/19**#................ 10,300
3,380 Clayton County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Village Rouge
Apartments Project) Series 1990C,
(FSA Insured, Societe Generale
SBPA),
5.500% 01/01/21**................. 3,380
1,695 Cobb County, Georgia IDR,
(Datagraphic Inc. Project) Series
1990, AMT, (SouthTrust Bank of
Alabama LOC),
4.600% 05/01/05**................. 1,695
3,400 Cobb County, Georgia Residential
Care Facilities for the Elderly
Authority, (North Georgia
Presbyterian Homes, Inc. Project)
Series 1993, (SunTrust Bank LOC),
5.600% 08/01/18**#................ 3,400
14,800 Cobb-Marietta, Georgia Coliseum and
Exhibit Hall Authority Revenue,
Jr. Lien, Series 1996A, (MBIA
Insured, Canadian Imperial Bank of
Commerce SBPA),
5.500% 10/01/26**#................ 14,800
2,785 College Park, Georgia Business and
Industrial Development Authority
Revenue Refunding, (College Park
Association Project) Series 1997,
(Bank of New York LOC),
5.500% 06/01/14**#................ 2,785
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 2,250 Columbus, Georgia Housing Authority
Multi-Family Housing Revenue
Refunding, (Quail Ridge Project)
Series 1988, (Columbus Bank &
Trust LOC),
5.800% 02/01/05**................. $ 2,250
2,815 Columbus, Georgia Industrial and
Port Development Commission
Revenue Refunding, (Parisian, Inc.
Project) Series 1995, (Columbus
Bank & Trust LOC),
5.900% 04/01/07**#................ 2,815
4,280 DeKalb County, Georgia Development
Authority Industrial Educational
Revenue, (Catholic School
Properties, Inc. Project) Series
1999, (Wachovia Bank, N.A. LOC),
5.600% 04/01/24**#................ 4,280
6,715 DeKalb County, Georgia Development
Authority Revenue, (American
Cancer Society, Inc. Project)
Series 1988, (SunTrust Bank LOC),
5.600% 05/01/13#.................. 6,715
2,860 DeKalb County, Georgia Hospital
Authority Revenue Anticipation
Certificates, (DeKalb Medical
Center, Inc. Project) Series 1994,
(SunTrust Bank LOC),
5.600% 09/01/09**#................ 2,860
10,650 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Camden Brook
Project) Series 1995, (FNMA
Collateral Agreement),
5.650% 06/15/25**................. 10,650
14,935 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Wood Terrace
Apartments Project) Series 1995,
(FNMA Collateral Agreement),
5.600% 12/15/15**................. 14,935
5,430 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue, (Haystack Apartments
Project) Series 1995, AMT,
(General Electric Capital
Corporation Guarantee),
5.600% 12/01/20**#................ 5,430
7,475 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue, (Stone Mill Run
Apartments Project) Series 1995A,
AMT, (First Tennessee Bank, N.A.
LOC),
5.800% 08/01/27**................. 7,475
5,300 DeKalb County, Georgia Industrial
Development Authority IDR, (A.G.
Rhodes Home Inc. Project) Series
1996, (SunTrust Bank LOC),
5.600% 03/01/21**#................ 5,300
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 5,250 DeKalb County, Georgia Industrial
Development Authority IDR,
(Radiation Sterilizers Inc.
Project) Series 1985, (Comerica
Bank LOC),
4.500% 03/01/05**#................ $ 5,250
5,000 Floyd County, Georgia Development
Authority University and College
Improvement Revenue, (Berry
College, Inc. Project) Series
1999, (Sun Trust Bank LOC),
5.600% 03/01/24**................. 5,000
26,900 Fulton County, Georgia Development
Authority Revenue, (Catholic
School Properties, Inc. Project)
Series 1999, (Wachovia Bank, N.A.
LOC),
5.600% 04/01/24**#................ 26,900
12,500 Fulton County, Georgia Development
Authority Revenue, (Robert W.
Woodruff Arts Center Project)
Series 1993, (Wachovia Bank of
Georgia LOC),
5.600% 08/01/18**#................ 12,500
3,000 Fulton County, Georgia Development
Authority Revenue, (Spelman
College Project) Series 1996,
(SunTrust Bank LOC),
5.600% 06/01/16**#................ 3,000
2,400 Greene County, Georgia Industrial
Development Authority IDR,
(Chipman-Union, Inc. Project)
Series 1995A, AMT, (SunTrust Bank
LOC),
5.700% 03/01/05**#................ 2,400
7,500 Gwinnett County, Georgia Industrial
Development Authority IDR, (United
Stationers Company Project) Series
1990, (PNC Bank of Ohio, N.A.
LOC),
5.500% 12/31/02**#................ 7,500
3,000 Henry County, Georgia Development
Authority Revenue Refunding,
(Georgia-Pacific Corporation
Project) Series 1993, (SunTrust
Bank LOC),
5.600% 05/01/04**#................ 3,000
7,640 Marietta, Georgia Housing Authority
Multi-Family Revenue, (Franklin
Walk Apartments Project) Series
1990, (Wachovia Bank, N.A. LOC),
4.500% 01/01/32**................. 7,640
11,225 Marietta, Georgia Housing Authority
Multi-Family Revenue, (Winterset
Apartments Project) Series 1996P,
(FNMA Collateral Agreement),
5.850% 02/01/26**................. 11,225
1,000 Monroe County, Georgia, Development
Authority, PCR, (Georgia Power
Company Scherer Project) Series
1995,
5.600% 07/01/25**................. 1,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 1,000 Newton County, Georgia Industrial
Development Authority IDR, (H.B.
Fuller Company Project) Series
1984, (Commerzbank A.G. LOC),
5.650% 12/01/04**................. $ 1,000
7,000 Private Colleges and Universities
Authority Revenue, (Emory
University Project) Series 1999C,
5.500% 11/01/03**................. 7,000
2,600 Putnam County, Georgia Development
Authority PCR, (Georgia Power
Company Plant Project) Series
1997-2,
5.600% 09/01/29**................. 2,600
9,800 Richmond County, Georgia Hospital
Authority Revenue Anticipation
Certificates, (University Health
Services, Inc. Project) Series
1999, (SunTrust Bank LOC),
5.600% 01/01/19**................. 9,800
8,600 Smyrna, Georgia Housing Authority
Multi-Family Housing Revenue,
(Gardens of Post Village Apartment
Project) Series 1996, (FNMA
Collateral Agreement),
5.600% 06/01/25**#................ 8,600
18,400 Smyrna, Georgia Housing Authority
Multi-Family Housing Revenue,
(Post Apartment Homes-Post Valley,
LP Project) Series 1995, (FNMA
Collateral Agreement),
5.600% 06/01/25**#................ 18,400
4,000 Tallapoosa, Georgia Development
Authority IDR Refunding, (U.S. Can
Company Project) Series 1994,
(Harris Trust & Savings Bank LOC),
5.500% 02/01/15**#................ 4,000
3,000 Thomasville, Georgia Payroll
Development Authority Industrial
Revenue, (Scruggs Company Project)
Series 2000, (First Union National
Bank LOC),
5.600% 08/01/10**#................ 3,000
5,350 Worth County, Georgia Industrial
Development Authority Revenue
Refunding, (Seabrook Enterprises
Inc. Project) Series 1996A,
(Harris Trust and Savings Bank
LOC),
5.600% 08/01/23**#................ 5,350
----------
254,135
----------
HAWAII -- 0.3%
8,300 Hawaii State Housing Finance and
Development Corporation Rental
Housing System Revenue, Series
1989A, (Banque Nationale de Paris
LOC),
5.550% 07/01/24**................. 8,300
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
IDAHO -- 0.9%
$ 22,275 Idaho Housing and Finance
Association, Series 1998PT-173,
AMT, (Commerzbank AG SBPA),
5.670% 07/01/29**##............... $ 22,275
----------
ILLINOIS -- 14.8%
2,100 Chicago, Illinois Airport Special
Facilities Revenue, (Centerpoint
O'Hare Project) Series 1997,
(First National Bank of Chicago
LOC),
5.650% 09/01/32**#................ 2,100
1,200 Chicago, Illinois O'Hare
International Airport Authority
Industrial Revenue, (American
Airlines, Inc. Project) Series
1983D, (Royal Bank of Canada LOC),
5.600% 12/01/17**................. 1,200
2,115 Illinois Development Finance
Authority IDR Refunding, (St.
Xavier University Project) Series
1992, (American National Bank &
Trust Company LOC),
5.550% 10/01/12**................. 2,115
3,430 Illinois Development Finance
Authority IDR, (Randolph Pickle
Corporation Project) Series 1992,
AMT, (American National Bank &
Trust Company LOC),
5.750% 06/01/12**................. 3,430
2,000 Illinois Development Finance
Authority Revenue, (Chicago
Symphony Orchestra-Orchestral
Association Project) Series 1994,
(Northern Trust Company LOC),
5.400% 12/01/28**................. 2,000
5,470 Illinois Development Finance
Authority Revenue, (Little City
Foundation Project) Series 1994,
(LaSalle National Bank LOC),
5.550% 02/01/19**................. 5,470
12,300 Illinois Development Finance
Authority Revenue, (Lyric Opera of
Chicago Project) Series 1994,
(Northern Trust Company LOC, Bank
One of Michigan LOC, Harris Trust
& Savings Bank LOC),
5.500% 12/01/28**................. 12,300
13,000 Illinois Development Finance
Authority Revenue, (YMCA of
Metropolitan Chicago Project)
Series 1999A, (Harris Trust &
Savings Bank LOC),
5.500% 06/01/29**................. 13,000
8,900 Illinois Educational Facilities
Authority Revenue, (Arts Club of
Chicago Project) Series 1996,
(Northern Trust Company LOC),
5.500% 01/01/26**................. 8,900
700 Illinois Educational Facilities
Authority Revenue, (Chicago
Historical Society Project) Series
1985, (Northern Trust Company
LOC),
5.500% 12/01/25**................. 700
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 29,000 Illinois Educational Facilities
Authority Revenue, (Field Museum
of Natural History Project) Series
1998, (Northern Trust Company
LOC),
5.500% 11/01/32**................. $ 29,000
6,000 Illinois Educational Facilities
Authority Revenue, (Museum of
Science and Industry Project)
Series 1992, (First National Bank
of Chicago LOC),
5.550% 10/01/26**................. 6,000
12,369 Illinois Educational Facilities
Authority Revenue, (Northwestern
University Project) Series 1988,
(Northern Trust Company SBPA),
5.550% 03/01/28**................. 12,369
10,000 Illinois Educational Facilities
Authority Revenue, (University of
Chicago Project) Series 2000,
4.750% 01/26/01**................. 10,000
22,925 Illinois Educational Facilities
Authority Revenue, (University
Pooled Financing Program) Series
1985, (FGIC Insured, First
National Bank of Chicago SBPA),
5.500% 12/01/05**................. 22,925
1,200 Illinois Health Facilities Authority
Revenue, (Central Health and
Northwest Community Hospital
Project) Series 1985B, (Harris
Trust & Savings Bank LOC),
4.500% 10/01/15**#................ 1,200
6,000 Illinois Health Facilities Authority
Revenue, (Central Health and
Northwest Community Hospital
Project) Series 1985C, (Harris
Trust & Savings Bank LOC),
4.500% 10/01/15**#................ 6,000
11,000 Illinois Health Facilities Authority
Revenue, (Evanston Northwestern
Healthcare Corporation Project)
Series 1985B,
4.450% 08/15/01**#................ 11,000
10,000 Illinois Health Facilities Authority
Revenue, (Evanston Northwestern
Healthcare Corporation Project)
Series 1990A,
4.450% 07/31/01**#................ 10,000
23,000 Illinois Health Facilities Authority
Revenue, (Evanston Northwestern
Healthcare Corporation Project)
Series 1996,
4.750% 08/15/30**................. 23,000
4,200 Illinois Health Facilities Authority
Revenue, (Gottlieb Health
Resources, Inc. Project) Series
1994, (Harris Trust & Savings Bank
LOC),
5.500% 11/15/24**................. 4,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 9,550 Illinois Health Facilities Authority
Revenue, (Sacramento Development
Association - Park Plaza Center
Project) Series 1996, (LaSalle
National Bank LOC),
5.500% 09/15/20**................. $ 9,550
7,100 Illinois Health Facilities Authority
Revenue, (The Streeterville
Corporation Project) Series 1994,
(First National Bank of Chicago
LOC),
5.550% 08/15/24**................. 7,100
44,535 Illinois Metropolitan Pier and
Exposition Authority Dedicated
Special Tax Revenue, (McCormick
Place Project) Series 1998PT-1030,
(AMBAC Insured, Merrill Lynch
SBPA),
4.600% 06/15/27**#................ 44,535
1,700 Illinois State Development Finance
Authority Economic Development
Revenue, (Addison 450 LP Project)
Series 1989, AMT, (American
National Bank & Trust Company
LOC),
5.700% 12/01/09**................. 1,700
9,000 Illinois State Development Finance
Authority Economic Development
Revenue, (Roosevelt University
Project) Series 1995, (American
National Bank & Trust Company
LOC),
5.550% 04/01/25**................. 9,000
4,120 Illinois State Development Finance
Authority Revenue, (Chicago
Academy of Sciences Project)
Series 1997, (American National
Bank & Trust Company LOC),
5.550% 01/01/31**................. 4,120
7,000 Jackson-Union County, Illinois
Regional District Port Facilities
Revenue Refunding, (Enron
Transportation Services Project)
Series 1994, (First Union National
Bank LOC),
5.600% 04/01/24**................. 7,000
13,700 Kane County, Illinois Educational
Facilities Revenue, (Glenwood
School for Boys Project) Series
1993, (Harris Trust & Savings Bank
LOC),
5.500% 02/01/28**................. 13,700
23,500 Lisle, Illinois Multi-Family Housing
Revenue, (Ashley of Lisle Project)
Series 1987, (FHLMC Guarantee),
5.520% 12/15/25**#................ 23,500
5,100 Mount Morris, Illinois Revenue,
(Brethren Home Project) Series
1997, (LaSalle National Bank LOC),
5.500% 06/01/27**................. 5,100
7,200 Mundelein, Illinois IDR Refunding,
(1200 Town Line Road Project)
Series 1992, (Northern Trust
Company LOC),
5.500% 01/01/06**................. 7,200
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 7,000 Oak Forest, Illinois Revenue,
(Homewood Pool - South Suburban
Mayors Project) Series 1989, (Bank
One N.A. LOC),
5.550% 07/01/24**................. $ 7,000
3,670 Palos Hills, Illinois Multi-Family
Housing Revenue, (Green Oaks
Project) Series 1998, AMT,
(LaSalle National Bank LOC),
5.670% 08/01/29**#................ 3,670
7,000 Quincy, Illinois Revenue, (Quincy
University Project) Series 1997,
(Allied Irish Bank, plc LOC),
5.600% 06/01/22**#................ 7,000
7,100 Sauget, Illinois GO, Series 1997,
(Dexia Credit Communal de Belgique
LOC),
5.500% 02/01/16**................. 7,100
1,300 Southwestern Illinois Development
Authority IDR, (Robinson Steel
Company, Inc. Project) Series
1991, AMT, (American National Bank
& Trust Company LOC),
5.700% 12/01/06**................. 1,300
3,050 Will-Kankakee, Illinois Regional
Development Authority IDR,
(Unimast Inc. Project) Series
2000, AMT, (Citibank, N.A. LOC),
5.650% 06/01/30**................. 3,050
5,000 Woodford County, Illinois Industrial
Development Authority IDR,
(Parsons Company, Inc. Project)
Series 1998, AMT, (Bank One
Illinois, N.A. LOC),
5.750% 03/01/13**#................ 5,000
----------
353,534
----------
INDIANA -- 2.1%
505 Evansville, Indiana IDR Refunding,
(Keebler Company Project) Series
1993, (Bank of Nova Scotia LOC),
5.550% 06/01/04**................. 505
3,495 Hendricks County, Indiana
Redevelopment Commission Tax
Increment Revenue, (Heartlands
Crossing Project) Series 1997A,
(Bank One Indiana, N.A. LOC),
5.600% 01/01/22**#................ 3,495
14,900 Indiana State Development Finance
Authority Economic Development
Educational Facilities Revenue,
(Indiana Historical Society
Project) Series 1997, (Bank One
Michigan, N.A. LOC),
5.550% 08/01/31**#................ 14,900
900 Indiana State Development Finance
Authority Economic Development
Revenue, (Fischer Enterprises,
Ltd. Project) Series 1991, (PNC
Bank, N.A. LOC),
5.600% 11/01/01**#................ 900
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
INDIANA -- (CONTINUED)
$ 9,545 Indiana State Development Finance
Authority IDR, (Indiana University
Foundation Project) Series 1998,
(National City Bank LOC),
5.600% 08/01/18**#................ $ 9,545
725 Indiana State Health Facilities
Financing Authority Capital Access
Designated Pool Revenue, Series
1997, (Comerica Bank, N.A. LOC),
5.850% 01/01/12**................. 725
4,900 Indianapolis, Indiana Economic
Development Revenue, (Edgcomb
Metals Company Project) Series
1983, (Wells Fargo Bank LOC),
5.500% 12/01/08**................. 4,900
2,900 Indianapolis, Indiana Multi-Family
Housing Revenue, (El-Beulah
Retirement Village Project) Series
1996, (Bank One Michigan LOC),
5.600% 03/01/21**#................ 2,900
5,170 St. Joseph County, Indiana Economic
Development Revenue, (Brothers of
the Holy Cross Project) Series
1997, (Key Bank, N.A. LOC),
5.600% 09/01/17**#................ 5,170
6,600 Terre Haute, Indiana Economic
Development Revenue, (First
Financial Corporation Project)
Series 1985, (First National Bank
of Chicago LOC),
5.550% 12/01/15**................. 6,600
----------
49,640
----------
IOWA -- 0.1%
1,900 Iowa State Finance Authority IDR,
(Sauer-Sundstrand Company Project)
Series 1996, AMT, (Bayerische
Hypovereinsbank LOC),
5.600% 05/01/26**#................ 1,900
----------
KANSAS -- 2.2%
4,000 Junction City, Kansas IDR, (Genmar
Manufacturing Project) Series
1999, AMT, (Bank of New York LOC),
5.600% 04/01/19**#................ 4,000
9,400 Kansas Industrial Development
Finance Authority Revenue, (PQ
Corporation Project) Series 1988,
(Bank of New York LOC),
5.600% 08/01/15**#................ 9,400
9,600 Kansas State Development Finance
Authority Exempt Facilities
Revenue, (Seaboard Project) Series
1995A, AMT, (Bank of New York
LOC),
5.600% 12/01/25**#................ 9,600
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
KANSAS -- (CONTINUED)
$ 28,950 Olathe, Kansas Educational
Facilities Revenue, (Kansas
Independent College Association
Project) Series 1989A, (Key Bank,
N.A. LOC),
5.500% 07/01/24**................. $ 28,950
----------
51,950
----------
KENTUCKY -- 1.7%
5,000 Carroll County, Kentucky IDR,
(Kentucky Ladder Company Project)
Series 1990, AMT, (Bankers Trust
Company LOC),
5.850% 09/01/10**................. 5,000
800 Hopkinsville, Kentucky Industrial
Building Revenue, (Brazeway, Inc.
Project) Series 1994, AMT, (Bank
One Michigan, N.A. LOC),
5.750% 06/01/04**#................ 800
5,200 Lexington-Fayette County, Kentucky
Urban County Airport Corporation
Revenue, (First Mortgage Project)
Series 1994A, AMT, (Dexia Credit
Local de France LOC),
5.700% 04/01/24**................. 5,200
2,700 Lexington-Fayette County, Kentucky
Urban County Airport Corporation
Revenue, (First Mortgage Project)
Series 1994B, AMT, (Dexia Credit
Local de France LOC),
5.700% 04/01/24**................. 2,700
6,250 Louisville and Jefferson County,
Kentucky Regional Airport
Authority Airport Systems Revenue,
BAN, Series 1997AA-1, AMT,
(National City Bank Kentucky LOC),
5.550% 06/30/02**................. 6,250
5,400 Mason County, Kentucky PCR, (East
Kentucky Power National Rural
Cooperative Project) Series
1984B-1, (CFC Guarantee),
5.250% 10/15/14**................. 5,400
8,500 Mason County, Kentucky PCR, (East
Kentucky Power National Rural
Cooperative Project) Series
1984B-2, (CFC Guarantee),
5.250% 10/15/14**................. 8,500
5,800 Middletown, Kentucky Revenue,
(Christian Academy Louisville
Project) Series 1997, (Bank One of
Kentucky, N.A. LOC),
5.600% 07/01/22**#................ 5,800
----------
39,650
----------
LOUISIANA -- 5.3%
6,400 Ascension Parish, Louisiana PCR,
(Shell Oil Company Project) Series
1993,
5.600% 09/01/23**................. 6,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
LOUISIANA -- (CONTINUED)
$ 23,300 Jefferson Parish, Louisiana Hospital
Service District Number 001
Revenue Refunding, (West Jefferson
Medical Center Project) Series
1996, (Rabobank Nederland LOC),
5.600% 01/01/26**................. $ 23,300
22,325 Louisiana Public Facilities
Authority PCR, (Ciba-Geigy
Corporation Project) Series 1985,
(UBS AG LOC),
5.400% 12/01/04**................. 22,325
12,000 Louisiana Public Facilities
Authority Revenue,
(Inter-Community Health Care
Project) Series 1999, (Bank of New
York LOC),
5.500% 04/01/21**#................ 12,000
39,000 Louisiana State Public Facilities
Authority Hospital Revenue,
(Willis-Knighton Medical Center
Project) Series 1997, (AMBAC
Insured, Dexia Credit Local de
France SBPA),
5.400% 09/01/27**................. 39,000
10,000 Plaquemines, Louisiana Port Harbor
and Terminal District Port
Facilities Revenue, (International
Marine Terminals Project) Series
1984A, (KBC Bank N.V. LOC),
Mandatory Put 3/15/01,
4.200% 03/15/06................... 10,000
9,000 South Louisiana, Port Commission
Facilities Port Revenue, (Holnam,
Inc. Project) Series 1997, AMT,
(Wachovia Bank, N.A. LOC),
5.650% 01/01/27**#................ 9,000
5,045 Upper Pontalba, Louisiana Building
Restoration Corporation Revenue
Refunding, (Upper Pontalba
Building Project) Series 1996,
(Bank One Louisiana, N.A. LOC),
5.600% 12/01/16**#................ 5,045
----------
127,070
----------
MAINE -- 0.1%
3,000 Maine Public Utility Financing Bank
Public Utility Revenue Refunding,
(Maine Public Service Company
Project) Series 1996, AMT, (Bank
of New York LOC),
5.600% 04/01/21**................. 3,000
----------
MARYLAND -- 0.9%
9,100 Baltimore County, Maryland Economic
Development Revenue, (Fixed Blue
Circle Inc. Project) Series 1992,
(Den Danske Bank LOC),
5.600% 12/01/17**................. 9,100
3,300 Baltimore, Maryland Port Facilities
Revenue, (Occidental Petroleum
Corporation Project) Series 1981,
(Wachovia Bank, N.A. LOC),
4.150% 10/14/11**................. 3,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
MARYLAND -- (CONTINUED)
$ 6,900 Maryland State Industrial
Development Finance Authority
Economic Development Revenue,
(General Binding Corporation
Project) Series 1996, AMT, (Harris
Trust & Savings Bank LOC),
5.650% 03/01/26**#................ $ 6,900
2,300 Maryland State Industrial
Development Finance Authority
Revenue, (Rock-Tennessee
Converting Company Project) Series
1994, AMT, (SunTrust Bank LOC),
5.700% 05/01/06**#................ 2,300
----------
21,600
----------
MICHIGAN -- 1.4%
7,500 Grand Rapids, Michigan Economic
Development Corporation IDR
Refunding, (Baker, Knapp and
Tubbs, Inc. Project) Series 1992,
(Wachovia Bank, N.A. LOC),
5.600% 06/01/12**#................ 7,500
2,920 Jackson County, Michigan Economic
Development Corporation IDR
Refunding, (Jackson Associates,
LLC Project) Series 1994, (Bank
One of Dayton, N.A. LOC),
5.600% 10/01/14**#................ 2,920
10,335 Michigan State Strategic Fund PCR,
(General Motors Corporation
Project) Series 1985, (General
Motors Guarantee),
5.700% 12/01/08**................. 10,335
7,000 University of Michigan Hospital
Revenue Refunding, (University of
Michigan Hospitals Project) Series
1992A,
5.550% 12/01/19**................. 7,000
6,700 University of Michigan Hospital
Revenue, (University of Michigan
Medical Service Plan Project)
Series 1995A,
5.550% 12/01/27**................. 6,700
----------
34,455
----------
MINNESOTA -- 0.4%
5,600 Minneapolis, Minnesota Community
Development Agency Revenue, (Arena
Acquisition Project) Series 1995A,
(US Bank, N.A. LOC),
5.500% 10/01/24**................. 5,600
3,200 Minnesota State Housing Finance
Agency, (Single-Family Mortgage
Project) Series 2000E, AMT,
(Bayerische Landesbank Guarantee)
4.350% 05/01/01................... 3,200
----------
8,800
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
MISSISSIPPI -- 0.7%
$ 1,700 Mississippi Business Finance
Corporation IDR, (Choctaw Maid
Farms, Inc. Project) Series 1995,
AMT, (Rabobank Nederland LOC),
5.700% 03/01/10**#................ $ 1,700
1,500 Mississippi Business Finance
Corporation, (Trilogy
Communications Project) Series
1995, AMT, (First Union National
Bank LOC),
5.650% 06/01/05**#................ 1,500
12,345 Mississippi State GO, Putters 103,
Series 1998B, (FGIC Insured, Bank
of New York SBPA),
5.620% 11/01/11**#................ 12,345
----------
15,545
----------
MISSOURI -- 5.6%
5,000 Berkeley, Missouri Industrial
Development Authority IDR, (Flight
Safety International, Inc.
Project) Series 1984, (Wachovia
Bank, N.A. LOC),
5.600% 09/01/04**#................ 5,000
5,000 Berkeley, Missouri Industrial
Development Authority Revenue
Refunding, (Wetterau, Inc.
Project) Series 1987, (PNC Bank,
N.A. LOC),
5.400% 07/01/08**#................ 5,000
8,295 Kansas City, Missouri Industrial
Development Authority Multi-Family
Housing Revenue Refunding, (Willow
Creek IV Apartments Project)
Series 1995, (FNMA Collateral
Agreement),
5.700% 09/01/25**................. 8,295
18,400 Kansas City, Missouri Industrial
Development Authority Multi-Family
Housing Revenue, (Timberlane
Village Associates Project) Series
1986, (UBS AG LOC),
5.620% 06/01/27**................. 18,400
30,200 Missouri State Development Finance
Board Lease Revenue, (Missouri
Association of Utilities Lease
Pool Project) Series 1999,
(TransAmerica Life and Annuity
Guarantee),
5.650% 12/01/22**................. 30,200
6,100 Missouri State Health and
Educational Facilities Authority
Health Facilities Revenue,
(Sisters of Mercy Health Care
System Project) Series 1989D,
(ABN-AMRO Bank SBPA, Rabobank
Nederland SBPA),
5.600% 06/01/19**................. 6,100
10,000 Missouri State Health and
Educational Facilities Authority
Park Hill School District Revenue,
(Advance Funding Program Notes
Project) Series 2000J,
5.000% 10/01/01................... 10,060
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
MISSOURI -- (CONTINUED)
$ 20,500 Missouri State Health and
Educational Facilities Authority
Revenue, (Stowers Institute of
Medical Research Project) Series
1998A, (Morgan Guaranty Trust
LOC),
5.650% 04/01/38**................. $ 20,500
4,470 Missouri State Health and
Educational Facilities Authority
Wertzville R-IV School District
Revenue, (Advance Funding Program
Notes Project) Series 2000L,
5.000% 10/01/01................... 4,497
9,135 Platte County, Missouri Industrial
Development Authority Multi-Family
Housing Revenue Refunding,
(Wexford Place Project) Series
1996, (Bank One Texas, N.A. LOC),
5.600% 04/01/28**#................ 9,135
8,000 St. Louis, Missouri Industrial
Development Authority Revenue
Refunding, (Wetterau, Inc.
Project) Series 1988, (Wachovia
Bank, N.A. LOC),
5.400% 12/01/03**#................ 8,000
5,000 St. Louis, Missouri Industrial
Development Authority Revenue
Refunding, (Wetterau, Inc.
Project) Series 1989, (PNC Bank,
N.A. LOC),
5.400% 05/01/09**#................ 5,000
4,840 St. Louis, Missouri Planned
Industrial Expansion Authority
IDR, (Alumax Foils Project) Series
1992, (PNC Bank, N.A. LOC),
5.500% 12/01/05**#................ 4,840
----------
135,027
----------
NEVADA -- 0.9%
12,050 Clark County, Nevada IDR, (Nevada
Cogeneration Association II
Project) Series 1990, AMT,
(Canadian Imperial Bank of
Commerce LOC),
5.650% 11/01/20**................. 12,050
9,925 Nevada GO, Series 2000PT-403,
4.500% 06/14/01**#(--)............ 9,925
----------
21,975
----------
NEW HAMPSHIRE -- 0.1%
3,075 New Hampshire State Housing Finance
Authority Single-Family Revenue,
(Mortgage Acquisition Project)
Series 1999D, AMT, (Transamerica
Life GIC),
4.000% 12/01/00................... 3,075
----------
NEW MEXICO -- 0.1%
3,100 Albuquerque, New Mexico Revenue
Refunding, (Charter Hospital Inc.
Project) Series 1992, (Chase
Manhattan Bank LOC),
5.650% 03/01/14**#................ 3,100
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
NEW YORK -- 0.3%
$ 2,735 Erie County, New York Industrial
Development Agency Civic
Facilities Revenue, (DePaul
Community Facilities, Inc.
Project) Series 1996, (Key Bank of
New York, N.A. LOC),
5.600% 11/01/16**#................ $ 2,735
4,125 Monroe County, New York Industrial
Development Agency Civic
Facilities Revenue, (Hillside
Childrens Center Project) Series
1998, (Key Bank, N.A. LOC),
5.600% 08/01/18**#................ 4,125
----------
6,860
----------
NORTH CAROLINA -- 2.0%
2,420 Iredell County, North Carolina
Industrial Facilities and
Pollution Control Financing
Authority Revenue, (Sullivan
Corporation Project) Series 1996,
AMT, (Bank One Milwaukee, N.A.
LOC),
5.750% 01/01/11**#................ 2,420
4,500 Johnston County, North Carolina
Industrial Facilities and
Pollution Control Finance
Authority Revenue, (Industrial
Development Housing - Autry Mills
Project) Series 1999, AMT, (Branch
Banking and Trust LOC),
5.600% 02/01/13**................. 4,500
9,400 Lenoir County, North Carolina
Hospital Revenue, (Lenoir Memorial
Hospital Project) Series 1998,
(Wachovia Bank of North Carolina,
N.A. LOC),
5.550% 10/01/12**#................ 9,400
1,800 Mecklenburg County, North Carolina
Industrial Facilities and
Pollution Control Financing
Authority Revenue, (Sterigenics
International Project) Series
1996, AMT, (Comerica Bank, N.A.
LOC),
5.550% 03/01/16#.................. 1,800
900 Mecklenburg County, North Carolina
Industrial Facilities and
Pollution Control Financing
Authority, (Virkler Company
Project) Series 1989, AMT, (First
Union National Bank LOC),
5.600% 12/01/04**#................ 900
7,700 New Hanover County, North Carolina
Industrial Facilities and
Pollution Control Financing
Authority Revenue Refunding,
(Corning, Inc. Project) Series
1997, (Wachovia Bank of Georgia,
N.A. LOC),
5.550% 05/01/10**#................ 7,700
4,670 North Carolina Medical Care
Commission Health Care Facilities
Revenue, (Mission-Thomas - St.
Joseph Medical Center Project)
Series 1998, (Wachovia Bank of
North Carolina, N.A. LOC),
5.550% 03/01/18**#................ 4,670
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
NORTH CAROLINA -- (CONTINUED)
$ 7,700 North Carolina State Medical Care
Commission Community Health Care
Facilities Revenue, (Carolina
Village Inc. Project) Series 1998,
(Wachovia Bank of North Carolina,
N.A. LOC),
5.550% 10/01/18**#................ $ 7,700
3,100 Randolph County, North Carolina
Industrial Facilities and
Pollution Control Finance
Authority Revenue, (Wayne Steel,
Inc. Project) Series 1995, AMT,
(Bank One Akron, N.A. LOC),
5.750% 09/01/05**#................ 3,100
5,725 Winston-Salem, North Carolina Risk
Acceptance Management Corporation
Certificates of Participation,
Series 1988, (Wachovia Bank, N.A.
SBPA),
5.500% 07/01/09**#................ 5,725
----------
47,915
----------
NORTH DAKOTA -- 0.2%
3,900 Grand Forks, North Dakota Health
Care Facilities Revenue, (The
United Hospital Obligated Group
Project) Series 1996A, (LaSalle
National Bank LOC),
5.500% 12/01/25**#................ 3,900
2,000 Grand Forks, North Dakota Hospital
Facilities Revenue, (The United
Hospital Obligated Group Project)
Series 1992, (LaSalle National
Bank LOC),
5.500% 12/01/16**#................ 2,000
----------
5,900
----------
OHIO -- 3.5%
2,800 Lucas County, Ohio Facilities
Improvement Revenue, (Toledo
Zoological Society Project) Series
1997, (Key Bank, N.A. LOC),
5.500% 10/01/05**#................ 2,800
8,000 Montgomery County, Ohio Economic
Development Revenue, (The Dayton
Art Institute Project) Series
1996, (National City Bank LOC),
5.550% 05/01/26**................. 8,000
16,775 Muskingum County, Ohio Hospital
Facilities, Revenue Refunding,
(Genesis System Project) Series
2000, (National City Bank LOC),
5.500% 12/01/20**................. 16,775
20,000 Ohio State Air Quality Development
Authority Revenue Refunding, (Ohio
Edison Project) Series 1988A,
(Toronto Dominion Bank LOC),
Mandatory Put 02/01/01,
4.100% 02/01/15................... 19,993
6,905 Ohio State Special Obligation,
(Elementary and Secondary
Education Facilities Project)
Series 1998A,
4.500% 06/01/01................... 6,909
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
OHIO -- (CONTINUED)
$ 7,260 Ohio State Water Development
Authority Promissory Revenue,
Series 1999A, (National City Bank
LOC),
5.600% 05/01/01**#................ $ 7,260
995 Summit County, Ohio IDR Refunding,
(Keebler Company Project) Series
1993, (Bank of Nova Scotia LOC),
5.550% 03/01/05**................. 995
20,000 Toledo-Lucas County, Ohio Port
Authority Airport Development
Revenue, (Flightsafety
International, Inc. Project)
Series 1998-1, AMT, (OBH
Guarantee),
5.700% 01/01/18**#................ 20,000
----------
82,732
----------
OKLAHOMA -- 1.3%
6,000 Muskogee City and County, Oklahoma
Port Authority IDR, (Metals USA,
Inc. Project) Series 1998, AMT,
(Bank One Texas, N.A. LOC),
5.750% 05/01/23**#................ 6,000
5,000 Oklahoma Development Finance
Authority Revenue, (Seabrook Farms
Inc. Project) Series 1997, AMT,
(Bank of New York LOC),
5.600% 03/01/27**#................ 5,000
20,000 Payne County, Oklahoma Economic
Development Authority Revenue,
(Collegiate Housing Foundation
Project) Series 2000A, (First
Union National Bank LOC),
5.600% 06/01/30**................. 20,000
----------
31,000
----------
OREGON -- 0.2%
3,900 Washington County, Oregon Housing
Authority Multi-Family Housing
Revenue, (Cedar Mill Project)
Series 1995, AMT, (Bank of Nova
Scotia LOC),
5.650% 09/01/25**#................ 3,900
----------
PENNSYLVANIA -- 2.1%
8,480 Allegheny County, Pennsylvania
Hospital Development Authority
Revenue, (Dialysis Clinic Inc.
Project) Series 2000, (Wachovia
Bank, N.A. LOC),
5.600% 12/01/19**................. 8,480
8,500 Allegheny County, Pennsylvania IDR,
(United Jewish Federation Project)
Series 1995B, (PNC Bank, N.A.
LOC),
5.500% 10/01/25**#................ 8,500
5,000 Montgomery County, Pennsylvania
Industrial Development Authority
Revenue, (Plymouth Woods Project)
Series 1987, (PNC Bank, N.A. LOC),
5.500% 09/01/06**#................ 5,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
PENNSYLVANIA -- (CONTINUED)
$ 1,100 Pennsylvania Economic Development
Financing Authority Development
Revenue, (Pennsylvania Bar
Institute Project) Series 1996B,
AMT, (PNC Bank, N.A. LOC),
5.500% 04/01/15**#................ $ 1,100
1,000 Philadelphia, Pennsylvania Authority
for Industrial Development
Revenue, (Institute for Cancer
Research - Fox Chase Cancer Center
Project) Series 1997, (Morgan
Guaranty Trust LOC),
5.600% 07/01/25**#................ 1,000
5,675 Philadelphia, Pennsylvania
Redevelopment Authority Revenue,
(Southwark Plaza, LP Project)
Series 1997A, (PNC Bank, N.A.
LOC),
5.500% 12/01/03**................. 5,675
5,900 Philadelphia, Pennsylvania
Redevelopment Authority, (The
Presbyterian Home Project) Series
1998, (PNC Bank, N.A. LOC),
5.500% 07/01/28**#................ 5,900
3,800 Quakertown, Pennsylvania General
Authority Revenue, (Pooled
Financing Program) Series 1996A,
(PNC Bank, N.A. LOC),
5.550% 07/01/26**................. 3,800
1,700 Schuylkill County, Pennsylvania
Industrial Development Authority
Resource Recovery Revenue
Refunding, (Northeastern Power
Company Project) Series 1997B,
AMT, (Dexia Credit Local de France
LOC),
5.650% 12/01/22**................. 1,700
4,525 Westmoreland County, Pennsylvania
Industrial Development Authority
Revenue, (Elizabeth Carbide Die
Project) Series 1998A, AMT,
(National City Bank LOC),
5.600% 02/01/18**#................ 4,525
4,000 Westmoreland County, Pennsylvania
Industrial Development Authority
Revenue, (Rhodin Enterprises
Project) Series 1997, AMT, (PNC
Bank, N.A. LOC),
5.600% 04/01/17**#................ 4,000
----------
49,680
----------
SOUTH CAROLINA -- 8.8%
10,000 Beaufort County, South Carolina GO
BAN, Series 2000,
4.750% 05/16/01................... 10,018
13,500 Charleston, South Carolina GO TAN,
Series 2000,
4.600% 03/15/01................... 13,521
21,000 Greenville County, South Carolina
School District GO, Series 2000,
4.500% 03/01/01................... 21,021
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 5,445 Kershaw County, South Carolina IDR,
(DeRoyal Textiles, Inc. Project)
Series 1994, AMT, (Sun Trust Bank
of Nashville LOC),
5.700% 12/01/07**#................ $ 5,445
23,930 Lexington County, South Carolina
School District Number 001 GO BAN,
Series 2000, (SCSDE),
4.750% 09/27/01................... 24,032
40,000 Richland County, South Carolina
School District Number 001 GO BAN,
Series 2000, (SCSDE),
4.750% 09/14/01................... 40,164
5,000 South Carolina Jobs Economic
Development Authority Economic
Development Revenue, (Pine River
Plastics Inc. Project) Series
2000, AMT, (Comerica Bank LOC),
5.650% 03/01/11**................. 5,000
7,000 South Carolina Jobs Economic
Development Authority Economic
Development Revenue, (Raynor USA
Southeast Project), Series 2000,
AMT, (LaSalle Bank, N.A. LOC),
5.670% 05/01/20**................. 7,000
8,000 South Carolina Jobs Economic
Development Authority Economic
Development Revenue, (Thompson
Steel Company Inc. Project) Series
2000, AMT, (Fleet National Bank,
N.A),
5.650% 06/01/20**................. 8,000
5,750 South Carolina Jobs Economic
Development Authority Health
Facilities Revenue, (Carolina
Village Project) Series 2000,
(Branch Banking & Trust LOC),
5.550% 02/01/22**................. 5,750
7,900 South Carolina Jobs Economic
Development Authority Hospital
Facilities Revenue, (Tuomey
Regional Medical Center Project)
Series 1995C, (MBIA Insured,
Wachovia Bank of South Carolina
SBPA),
5.400% 11/01/25**#................ 7,900
7,800 South Carolina Jobs Economic
Development Authority IDR,
(Abraham Industries LLC Project)
Series 1999, AMT, (PNC Bank, N.A.
LOC),
5.600% 05/01/14**................. 7,800
4,135 South Carolina Jobs Economic
Development Authority IDR, (Kravet
Fabrics, Inc. Project) Series
1997, AMT, (Bank of New York LOC),
5.600% 03/01/12**#................ 4,135
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 6,900 South Carolina Jobs Economic
Development Authority Revenue,
(Alco-Lite Industries LLC -
TechnoSteel LLC Project) Series
1997, AMT, (Wachovia Bank of South
Carolina, N.A. LOC),
5.700% 04/01/12**#................ $ 6,900
20,000 South Carolina Jobs Economic
Development Authority Revenue,
(St. Francis Hospital - Bon
Secours Project) Series
1999PT-328, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
5.770% 01/01/01**##(--)........... 20,000
10,600 South Carolina, Housing Finance and
Development Authority Revenue
Refunding, (Paces Watch Airport
Project) Series 2000, (FNMA
Collateral Agreement),
5.700% 08/15/30**................. 10,600
12,775 University of South Carolina
Athletic Facilities Revenue,
Series 2000,
4.500% 02/23/01................... 12,790
----------
210,076
----------
SOUTH DAKOTA -- 1.3%
32,050 South Dakota State Housing
Development Authority, Series
1998PT-168, AMT, (Banque Nationale
de Paris SBPA),
5.670% 05/01/27**##............... 32,050
----------
TENNESSEE -- 1.3%
1,500 Chattanooga-Hamilton County,
Tennessee Hospital Authority
Revenue Refunding, (Erlanger
Medical Center Project) Series
1987, (Morgan Guaranty Trust LOC),
5.800% 10/01/17**................. 1,500
7,500 Knox County, Tennessee Health and
Educational Facilities Board
Educational Facilities Revenue,
(Webb School -
Knoxville Project) Series 1999,
(SunTrust Bank Nashville LOC),
5.600% 03/01/19**#................ 7,500
2,375 Loudon, Tennessee Water and Sewer
Revenue Refunding, Series 1996,
(Wachovia Bank, N.A. LOC),
5.600% 09/01/06**#................ 2,375
7,740 Metropolitan Government, Nashville
and Davidson County, Tennessee
Housing and Educational Facilities
Board Revenue, (Mary Queen of
Angels Project) Series 2000,
(SunTrust Bank LOC),
5.600% 07/01/32**................. 7,740
4,455 Metropolitan Government, Nashville
and Davidson County, Tennessee
Industrial Development Board
Revenue Refunding, (Nashville
Apartment Properties Project)
Series 1995-2, (SunTrust Bank
Nashville LOC),
5.600% 09/01/15**#................ 4,455
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
TENNESSEE -- (CONTINUED)
$ 3,245 Shelby County, Tennessee Health
Educational and Housing Facilities
Board Multi-Family Housing
Revenue, (Flag Manor Project)
Series 1995, AMT, (FHLB
Guarantee),
5.620% 01/01/23**#................ $ 3,245
5,000 Sullivan County, Tennessee
Industrial Development Board
Revenue, (Modern Forge Company
Project) Series 1990, AMT,
(Northern Trust Company LOC),
5.650% 07/01/10**#................ 5,000
----------
31,815
----------
TEXAS -- 9.1%
30,530 Alliance Airport Authority Inc.
Texas Special Facilities Revenue,
(Federal Express Project) Series
1999PA-460, AMT, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
5.820% 04/01/21#.................. 30,530
10,190 Bexar County, Texas Housing Finance
Corporation Multi-Family Housing
Revenue, Series 1998PT-1041, AMT,
(Merrill Lynch Guarantee, Merrill
Lynch SBPA),
5.770% 06/01/35**#(--)............ 10,190
1,000 Brazos River, Texas Harbor
Navigation District Revenue,
(Hoffman-La Roche Inc. Project)
Series 1985, (Wachovia Bank, N.A.
LOC),
4.475% 04/01/02**#................ 1,000
6,200 Chambers County, Texas Industrial
Development Corporation Revenue,
(Ecolochem Inc. Project) Series
1999, AMT, (Wachovia Bank, N.A.
LOC),
5.700% 03/01/14**#................ 6,200
8,185 El Paso, Texas Housing Finance
Corporation Multi-Family Housing
Revenue, (Viva Apartments Project-
Oakland Executive Center L.P.)
Series 1993, AMT, (General
Electric Capital Corporation
Guarantee),
5.950% 09/01/23**#................ 8,185
1,500 Grapevine, Texas Industrial
Development Corporation Revenue,
(American Airlines, Inc. Project)
Series 1984B-4, (Bayerische
Landesbank LOC),
5.500% 12/01/24**................. 1,500
6,050 Guadalupe-Blanco, Texas River
Authority Revenue Refunding,
(Central Power & Light Company
Project) Series 1995, (ABN AMRO
Bank N.V. LOC),
5.550% 11/01/15**................. 6,050
6,000 Gulf Coast, Texas Industrial
Development Authority Marine
Terminal Revenue, (Amoco Oil
Company Project) Series 1993, AMT,
(BP Amoco plc Guarantee),
5.700% 04/01/28**#................ 6,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 2,020 Harris County, Texas Industrial
Development Corporation IDR,
(Forged Products, Inc. Project)
Series 1996, AMT, (Bank One Texas,
N.A. LOC),
5.750% 05/01/03**#................ $ 2,020
2,595 Hillsboro, Texas Industrial
Development Corporation Revenue,
(Lamraft, LP Project) Series 1997,
AMT, (First Commercial Bank LOC),
5.800% 07/01/13**................. 2,595
1,000 Lone Star, Texas Airport Improvement
Authority Revenue, (American
Airlines, Inc. Project) Series
1984B-5, (Royal Bank of Canada
LOC),
5.500% 12/01/14**................. 1,000
1,000 Lone Star, Texas Airport Improvement
Authority, Revenue, (American
Airlines Inc. Project) Series
1984A-5, (Royal Bank of Canada
LOC),
5.500% 12/01/14**................. 1,000
20,000 Mesquite,Texas Independent School
District GO, (Texas Permanent Fund
Insured, Morgan Guaranty Trust
SBPA), Mandatory Put 2/01/01,
4.450% 08/15/25................... 20,006
10,200 Port Development Corporation of
Texas Marine Terminal Revenue,
(Pasadena Terminal Company, Inc.
Project) Series 1984, (Deutsche
Bank A.G. LOC),
5.750% 12/01/04**#................ 10,200
1,200 Port of Port Arthur, Texas
Navigation District Revenue
Refunding, (Texaco, Inc. Project)
Series 1994,
5.550% 10/01/24**................. 1,200
100,000 Texas State TRAN, Series 2000,
5.250% 08/31/01................... 100,860
8,410 Trinity River Authority of Texas PCR
Refunding, (Texas Utilities
Electric Company Project) Series
1997A, AMT, (MBIA Insured, Bank of
New York SBPA),
5.500% 07/01/22**................. 8,410
----------
216,946
----------
UTAH -- 0.7%
1,700 Murray City, Utah IDR, (Zevex, Inc.
Project) Series 1996, AMT, (Bank
One Arizona, N.A. LOC),
5.750% 10/01/16#.................. 1,700
3,200 Murray City, Utah Industrial
Development Authority Revenue,
(Hunter Douglas Real Property
Project) Series 1994, AMT,
(ABN-AMRO Bank N.V. LOC),
5.700% 09/01/14**#................ 3,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
UTAH -- (CONTINUED)
$ 12,500 Utah State Board of Regents Student
Loan Revenue, Series 1988B, (AMBAC
Insured, Dresdner Bank AG SBPA),
5.400% 11/01/00**................. $ 12,500
----------
17,400
----------
VIRGINIA -- 1.2%
15,000 Culpeper, Virginia Industrial
Development Authority, Residential
Care Facilities Revenue, (Virginia
Baptist Homes Project) Series
2000, (First Union National Bank
LOC),
5.400% 08/01/30**................. 15,000
2,000 Fluvanna County, Virginia Industrial
Development Authority IDR,
(Edgecomb Metals Company Project)
Series 1984, (Wells Fargo Bank
LOC),
5.600% 12/01/09**#................ 2,000
3,900 Greensville County, Virginia
Industrial Development Authority
Revenue, (Perdue Farms, Inc.
Project) Series 1996, AMT,
(SunTrust Bank LOC),
5.700% 10/01/06**#................ 3,900
2,000 Spotsylvania County, Virginia
Industrial Development Authority
IDR, (Carlisle Corporation
Project) Series 1993, (SunTrust
Bank LOC),
5.600% 06/01/08**#................ 2,000
6,000 Virginia State College Building
Authority Educational Facilities
Revenue, (University of Richmond
Project) Series 1996, (Crestar
Bank SBPA),
5.400% 11/01/26**................. 6,000
----------
28,900
----------
WASHINGTON -- 0.8%
19,865 Washington State, Motor Fuel Tax GO,
Series 2000PT-433, (Merrill Lynch
SBPA),
4.500% 06/01/08**#(--)............ 19,865
----------
WEST VIRGINIA -- 1.0%
1,500 Marshall County, West Virginia PCR,
(Mountaineer Carbon Company
Project) Series 1985, (BP Amoco
plc Guarantee),
5.600% 12/01/20**................. 1,500
21,750 West Virginia State Hospital Finance
Authority Revenue, (St. Mary's
Hospital Project) Series 1987,
(Bank One of West Virginia LOC),
5.600% 10/01/12**#................ 21,750
----------
23,250
----------
WISCONSIN -- 1.6%
3,805 Menomonee Falls, Wisconsin
Industrial Development Authority
IDR, (Jema, LLC Project) Series
1994, AMT, (Bank One Milwaukee,
N.A. LOC),
5.750% 09/01/14**#................ 3,805
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
WISCONSIN -- (CONTINUED)
$ 7,290 Milwaukee, Wisconsin IDR, (Goodwill
Industries Project) Series 1999,
(Firstar Bank Milwaukee LOC),
5.600% 07/01/19**................. $ 7,290
6,000 Oshkosh, Wisconsin Area School
District, TRAN, Series 2000,
4.650% 08/22/01................... 6,016
22,000 Wisconsin State Health and
Educational Facilities Authority
Revenue, (Wheaton Franciscan Services
Project) Series 1997, (Toronto
Dominion Bank LOC),
5.550% 08/15/16**#................ 22,000
----------
39,111
----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $2,396,656)................... 2,396,656
----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $2,396,656*)...... 100.2% 2,396,656
----------
OTHER ASSETS AND
LIABILITIES (NET)........ (0.2)%
Receivable for investment
securities
sold............................
$ 38,300
Receivable for Fund shares sold... 473
Interest receivable............... 13,493
Payable for Fund shares
redeemed........................ (37,452)
Investment advisory fee payable... (464)
Administration fee payable........ (161)
Shareholder servicing and
distribution fees payable....... (94)
Due to custodian.................. (1,449)
Distributions payable............. (7,717)
Payable for investment securities
purchased....................... (9,600)
Accrued Trustees'/Directors' fees
and expenses.................... (98)
Accrued expenses and other
liabilities..................... (264)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)............... (5,033)
----------
NET ASSETS................. 100.0% $2,391,623
==========
NET ASSETS CONSIST OF:
Undistributed net investment
income.......................... $ 51
Accumulated net realized gain on
investments sold................ 1
Paid-in capital................... 2,391,571
----------
NET ASSETS........................ $2,391,623
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS FUNDS
Nations Tax Exempt Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
----------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE
PRIMARY A SHARES:
($2,035,901,198 / 2,036,466,726
shares outstanding)............. $1.00
=====
PRIMARY B SHARES:
($5,499,314 / 5,491,743 shares
outstanding).................... $1.00
=====
INVESTOR A SHARES:
($40,595,246 / 40,560,636 shares
outstanding).................... $1.00
=====
INVESTOR B SHARES:
($211,918,618 / 211,782,361 shares
outstanding).................... $1.00
=====
INVESTOR C SHARES:
($335,658 / 335,512 shares
outstanding).................... $1.00
=====
DAILY SHARES:
($97,373,155 / 97,205,797 shares
outstanding).................... $1.00
=====
</TABLE>
---------------
<TABLE>
<C> <S>
* Aggregate cost for federal tax purposes.
** Variable rate demand notes. The interest rate shown reflects
the rate in effect at September 30, 2000. These securities
are subject to demand features of either one, seven or
thirty days.
(--) Restricted Security (Note 5).
# Security not registered under the Securities Act of 1933, as
amended. These securities may be resold in transactions
exempt from registration to qualified institutional buyers.
## Security exempt from registration under Rule 144A of the
Securities Act of 1933, as amended. These securities may be
resold in transactions exempt from registration to qualified
institutional buyers.
Nations Tax Exempt fund had the following industry
concentrations greater than 10% at September 30, 2000 (as a
percentage of net assets):
HealthCare Revenue 16.81%
Housing Revenue 14.44%
Industrial Facilities Revenue 10.72%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS FUNDS
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance
Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CFC Cooperative Finance Corporation
FGIC Financial Guaranty Insurance
Corporation
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GIC Guaranteed Investment Contracts
GO General Obligation
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
SLMA Student Loan Marketing Association
TAN Tax Anticipation Note
TRAN Tax and Revenue Anticipation Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
GOVERNMENT
PRIME TREASURY MONEY MARKET TAX EXEMPT
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest............................................ $ 179,393 $ 55,753 $ 11,890 $ 52,036
-------------- -------------- -------------- --------------
EXPENSES:
Investment advisory fee............................. 5,467 1,779 368 2,414
Administration fee.................................. 2,710 882 184 1,207
Transfer agent fees................................. 284 101 29 124
Custodian fees...................................... 157 139 24 63
Legal and audit fees................................ 64 44 34 46
Registration and filing fees........................ 66 49 38 44
Trustees'/Directors' fees and expenses.............. 9 9 8 9
Other............................................... 448 93 46 171
-------------- -------------- -------------- --------------
Subtotal........................................ 9,205 3,096 731 4,078
Shareholder servicing and distribution fees:
Primary B Shares.................................. 20 12 1 9
Investor A Shares................................. 1,034 1,642 21 73
Investor B Shares................................. 1,187 336 129 347
Investor C Shares................................. 9 --* 1 --*
Daily Shares...................................... 3,970 406 63 361
Marsico Shares.................................... 29 -- -- --
-------------- -------------- -------------- --------------
Total expenses.................................. 15,454 5,492 946 4,868
Fees waived by investment adviser, administrator
and/or distributor................................ (2,545) (657) (229) (662)
Fees reduced by credits allowed by the custodian.... (14) (7) (6) --
-------------- -------------- -------------- --------------
Net expenses.................................... 12,895 4,828 711 4,206
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME/(LOSS)........................ 166,498 50,925 11,179 47,830
-------------- -------------- -------------- --------------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS............. 13 -- 1 (1)
-------------- -------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ 166,511 $ 50,925 $ 11,180 $ 47,829
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
PRIME
----------------------------------
SIX MONTHS
ENDED
9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00
----------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)................................ $ 166,498 $ 296,159
Net realized gain/(loss) on investments..................... 13 (41)
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 166,511 296,118
Distributions to shareholders from net investment income:
Primary A Shares.......................................... (94,133) (142,973)
Primary B Shares.......................................... (475) (1,146)
Investor A Shares......................................... (17,624) (32,376)
Investor B Shares......................................... (20,513) (34,055)
Investor C Shares......................................... (208) (604)
Daily Shares.............................................. (32,850) (83,948)
Marsico Shares............................................ (695) (1,056)
Net increase/(decrease) in net assets from Fund share
transactions.............................................. 169,899 (2,007,472)
-------------- --------------
Net increase/(decrease) in net assets....................... 169,912 (2,007,512)
NET ASSETS:
Beginning of period......................................... 5,408,921 7,416,433
-------------- --------------
End of period............................................... $ 5,578,833 $ 5,408,921
============== ==============
Undistributed net investment income/(loss)/(distributions in
excess of net investment income) at end of period......... $ -- $ --
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
TREASURY GOVERNMENT MONEY MARKET TAX EXEMPT
------------------------------- ------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 50,925 $ 98,301 $ 11,179 $ 23,618 $ 47,830 $ 75,276
-- -- 1 1 (1) 2
-------------- -------------- -------------- -------------- -------------- --------------
50,925 98,301 11,180 23,619 47,829 75,278
(15,323) (30,332) (8,124) (17,337) (41,401) (62,608)
(280) (673) (20) (49) (141) (285)
(26,600) (49,488) (340) (932) (759) (1,300)
(5,525) (10,514) (2,172) (3,819) (3,719) (6,269)
(3) (9) (14) (18) (6) (10)
(3,194) (7,285) (509) (1,463) (1,804) (4,804)
-- -- -- -- -- --
(160,920) (560,076) (47,336) (29,257) (29,749) (367,603)
-------------- -------------- -------------- -------------- -------------- --------------
(160,920) (560,076) (47,335) (29,256) (29,750) (367,601)
1,884,534 2,444,610 387,195 416,451 2,421,373 2,788,974
-------------- -------------- -------------- -------------- -------------- --------------
$ 1,723,614 $ 1,884,534 $ 339,860 $ 387,195 $ 2,391,623 $ 2,421,373
============== ============== ============== ============== ============== ==============
$ -- $ -- $ -- $ -- $ 51 $ 51
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS FUNDS
STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
<CAPTION>
TREASURY
(000)
-----------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES:
Investment income received................................ $ 57,248
Payment of operating expenses............................. ( 14,725)
Net reduction from reverse repurchase agreements
outstanding............................................. (363,520)
Net sales of short-term investments....................... 526,205
--------------
Cash provided by operating and investing activities......... $ 205,208
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Fund shares sold............................ 1,738,902
Payment on shares redeemed................................ (1,903,414)
Distributions paid*....................................... (40,721)
--------------
Cash used by financing activities........................... (205,233)
--------------
Decrease in cash.......................................... $ (25)
Cash at beginning of period............................... --
--------------
Cash at end of period..................................... $ (25)
==============
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from operations........ $ 50,925
Decrease in investments................................... $ 530,724
Decrease in payable for reverse repurchase agreement
transactions............................................ (363,520)
Decrease in interest and dividends receivable............. 2,885
Increase in receivable for investments sold............... (1,339,639)
Increase in payable for investments purchased............. 1,333,813
Increase in other assets.................................. (83)
Decrease in accrued expenses and other payables........... (9,897)
--------------
Cash provided by operating and investing activities......... $ 205,208
==============
</TABLE>
---------------
* Non-cash activities include reinvestment of dividends of $5,867.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY*
<TABLE>
<CAPTION>
PRIME TREASURY
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000 (UNAUDITED) MARCH 31, 2000
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold................................... $ 2,637,319 $ 3,155,768 $ 253,000 $ 528,841
Issued as reinvestment of dividends.... 1,218 1,947 13 59
Redeemed............................... (2,165,518) (3,569,068) (267,914) (791,845)
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ 473,019 $ (411,353) $ (14,901) $ (262,945)
=========== =========== =========== ===========
PRIMARY B SHARES:
Sold................................... $ 43,169 $ 186,771 $ 10,936 $ 28,668
Issued as reinvestment of dividends.... -- -- -- --
Redeemed............................... (115,679) (184,690) (13,163) (37,486)
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ (72,510) $ 2,081 $ (2,227) $ (8,818)
=========== =========== =========== ===========
INVESTOR A SHARES:
Sold................................... $ 1,837,392 $ 2,984,063 $ 1,191,627 $ 2,595,557
Issued as reinvestment of dividends.... 16,611 31,183 1,678 2,922
Redeemed............................... (1,885,534) (3,121,140) (1,302,784) (2,729,986)
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ (31,531) $ (105,894) $ (109,479) $ (131,507)
=========== =========== =========== ===========
INVESTOR B SHARES:
Sold................................... $ 1,169,378 $ 2,436,021 $ 257,169 $ 658,880
Issued as reinvestment of dividends.... 15,966 32,005 2,608 5,968
Redeemed............................... (1,198,871) (2,475,710) (276,552) (730,356)
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ (13,527) $ (7,684) $ (16,775) $ (65,508)
=========== =========== =========== ===========
INVESTOR C SHARES:
Sold................................... $ 33 $ 9,365 $ -- $ 28
Issued as reinvestment of dividends.... 178 548 3 9
Redeemed............................... (3,530) (12,126) (59) (42)
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ (3,319) $ (2,213) $ (56) $ (5)
=========== =========== =========== ===========
DAILY SHARES:
Sold................................... $ 184,821 $ 1,005,415 $ 31,530 $ 156,645
Issued as reinvestment of dividends.... 32,687 82,089 1,565 4,678
Redeemed............................... (396,534) (2,571,494) (50,577) (252,616)
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ (179,026) $(1,483,990) $ (17,482) $ (91,293)
=========== =========== =========== ===========
MARSICO SHARES:
Sold................................... $ 57,075 $ 131,075 $ -- $ --
Issued as reinvestment of dividends.... 599 1,055 -- --
Redeemed............................... (60,881) (130,549) -- --
----------- ----------- ----------- -----------
Net increase/(decrease)................ $ (3,207) $ 1,581 $ -- $ --
=========== =========== =========== ===========
Total net increase/(decrease).......... $ 169,899 $(2,007,472) $ (160,920) $ (560,076)
=========== =========== =========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET TAX EXEMPT
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000 (UNAUDITED) MARCH 31, 2000
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold................................... $ 123,063 $ 817,399 $ 1,005,907 $ 1,659,136
Issued as reinvestment of dividends.... 13 59 253 501
Redeemed............................... (150,723) (822,255) (1,008,000) (1,754,045)
--------- --------- ----------- -----------
Net increase/(decrease)................ $ (27,647) $ (4,797) $ (1,840) $ (94,408)
========= ========= =========== ===========
PRIMARY B SHARES:
Sold................................... $ 2,398 $ 8,557 $ 10,693 $ 35,021
Issued as reinvestment of dividends.... -- -- -- 2
Redeemed............................... (2,281) (9,272) (12,029) (38,425)
--------- --------- ----------- -----------
Net increase/(decrease)................ $ 117 $ (715) $ (1,336) $ (3,402)
========= ========= =========== ===========
INVESTOR A SHARES:
Sold................................... $ 92,608 $ 301,379 $ 44,866 $ 92,393
Issued as reinvestment of dividends.... 242 752 728 1,278
Redeemed............................... (101,397) (300,053) (48,933) (103,429)
--------- --------- ----------- -----------
Net increase/(decrease)................ $ (8,547) $ 2,078 $ (3,339) $ (9,758)
========= ========= =========== ===========
INVESTOR B SHARES:
Sold................................... $ 128,169 $ 317,218 $ 186,945 $ 433,728
Issued as reinvestment of dividends.... 1,722 3,544 2,824 5,615
Redeemed............................... (138,852) (321,509) (182,000) (494,662)
--------- --------- ----------- -----------
Net increase/(decrease)................ $ (8,961) $ (747) $ 7,769 $ (55,319)
========= ========= =========== ===========
INVESTOR C SHARES:
Sold................................... $ -- $ 428 $ 5 $ 370
Issued as reinvestment of dividends.... 14 18 5 5
Redeemed............................... (5) (31) -- (267)
--------- --------- ----------- -----------
Net increase/(decrease)................ $ 9 $ 415 $ 10 $ 108
========= ========= =========== ===========
DAILY SHARES:
Sold................................... $ 23,707 $ 287,994 $ 77,089 $ 270,242
Issued as reinvestment of dividends.... 507 1,367 1,789 4,714
Redeemed............................... (26,521) (314,852) (109,891) (479,780)
--------- --------- ----------- -----------
Net increase/(decrease)................ $ (2,307) $ (25,491) $ (31,013) $ (204,824)
========= ========= =========== ===========
Total net increase/(decrease).......... $ (47,336) $ (29,257) $ (29,749) $ (367,603)
========= ========= =========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
[This page intentionally left blank.]
31
<PAGE> 36
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF YEAR INCOME/(LOSS) INCOME
--------------------------------------------
<S> <C> <C> <C>
PRIME
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0316 $(0.0316)
Year ended 3/31/2000........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1999........................................ 1.00 0.0521 (0.0521)
Year ended 3/31/1998........................................ 1.00 0.0547 (0.0547)
Year ended 3/31/1997........................................ 1.00 0.0520 (0.0520)
Period ended 3/31/1996*..................................... 1.00 0.0468 (0.0468)
Year ended 5/31/1995........................................ 1.00 0.0519 (0.0519)
PRIMARY B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0303 $(0.0303)
Year ended 3/31/2000........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1999........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1998........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1997........................................ 1.00 0.0495 (0.0495)
Period ended 3/31/1996*..................................... 1.00 0.0447 (0.0447)
Period ended 5/31/1995**.................................... 1.00 0.0474 (0.0474)
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0298 $(0.0298)
Year ended 3/31/2000........................................ 1.00 0.0487 (0.0487)
Year ended 3/31/1999........................................ 1.00 0.0486 (0.0486)
Year ended 3/31/1998........................................ 1.00 0.0512 (0.0512)
Year ended 3/31/1997........................................ 1.00 0.0485 (0.0485)
Period ended 3/31/1996*..................................... 1.00 0.0438 (0.0438)
Year ended 5/31/1995........................................ 1.00 0.0475 (0.0475)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0303 $(0.0303)
Year ended 3/31/2000........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1999........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1998........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1997........................................ 1.00 0.0495 (0.0495)
Period ended 3/31/1996*..................................... 1.00 0.0447 (0.0447)
Year ended 5/31/1995........................................ 1.00 0.0493 (0.0493)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0303 $(0.0303)
Year ended 3/31/2000........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1999........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1998........................................ 1.00 0.0522 (0.0522)
Year ended 3/31/1997........................................ 1.00 0.0495 (0.0495)
Period ended 3/31/1996*..................................... 1.00 0.0447 (0.0447)
Year ended 5/31/1995........................................ 1.00 0.0493 (0.0493)
DAILY SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0291 $(0.0291)
Year ended 3/31/2000........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1999........................................ 1.00 0.0471 (0.0471)
Year ended 3/31/1998........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1997........................................ 1.00 0.0470 (0.0470)
Period ended 3/31/1996*..................................... 1.00 0.0439 (0.0439)
Period ended 5/31/1995**.................................... 1.00 0.0173 (0.0173)
MARSICO SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0303 $(0.0303)
Year ended 3/31/2000........................................ 1.00 0.0497 (0.0497)
Period ended 3/31/1999**.................................... 1.00 0.0080 (0.0080)
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the deduction
of any applicable sales charges.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
** Prime Primary B, Daily and Marsico Shares commenced operations on June 16,
1994, February 9, 1995 and January 26, 1999, respectively.
(a) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
OPERATING NET INVESTMENT OPERATING
NET ASSET NET ASSETS EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL END OF YEAR AVERAGE NET AVERAGE NET AVERAGE NET
END OF YEAR RETURN++ (000) ASSETS ASSETS ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.20% $3,215,027 0.30%+(a) 6.31%+ 0.34%+(a)
1.00 5.34 2,742,001 0.30(a) 5.21 0.35(a)
1.00 5.34 3,153,372 0.30(a) 5.21 0.34(a)
1.00 5.61 2,852,555 0.30 5.48 0.35
1.00 5.34 2,533,688 0.30 5.21 0.35
1.00 4.79 2,472,469 0.30+ 5.62+ 0.37+
1.00 5.32 2,873,096 0.30 5.23 0.38
$1.00 3.07% $ 11,220 0.55%+(a) 6.06%+ 0.59%+(a)
1.00 5.08 83,730 0.55(a) 4.96 0.60(a)
1.00 5.08 81,649 0.55(a) 4.96 0.59(a)
1.00 5.34 8,132 0.55 5.23 0.60
1.00 5.05 184,021 0.55 4.96 0.60
1.00 4.57 96,305 0.55+ 5.27+ 0.62+
1.00 4.84 126,120 0.55+ 4.98+ 0.63+
$1.00 3.02% $ 558,275 0.65%+(a) 5.96%+ 0.69%+(a)
1.00 4.98 589,804 0.65(a) 4.86 0.70(a)
1.00 4.91 695,703 0.65(a) 4.86 0.69(a)
1.00 5.24 1,706,692 0.65 5.13 0.70
1.00 4.96 1,157,724 0.65 4.86 0.70
1.00 4.48 1,099,490 0.65+ 5.27+ 0.72+
1.00 4.85 698,358 0.75 4.78 0.83
$1.00 3.07% $ 717,458 0.55%+(a) 6.06%+ 0.69%+(a)
1.00 5.08 730,984 0.55(a) 4.96 0.70(a)
1.00 5.02 738,673 0.55(a) 4.96 0.69(a)
1.00 5.34 844,367 0.55 5.23 0.60
1.00 5.05 381,015 0.55 4.96 0.60
1.00 4.57 358,646 0.55+ 5.37+ 0.62+
1.00 5.03 216,973 0.56 4.97 0.64
$1.00 3.07% $ 5,505 0.55%+(a) 6.06%+ 0.59%+(a)
1.00 5.08 8,824 0.55(a) 4.96 0.60(a)
1.00 5.02 11,037 0.55(a) 4.96 0.59(a)
1.00 5.34 96,149 0.55 5.23 0.60
1.00 5.05 93,678 0.55 4.96 0.60
1.00 4.57 74,822 0.55+ 5.37+ 0.62+
1.00 5.03 53,451 0.56 4.97 0.64
$1.00 2.94% $1,055,003 0.80%+(a) 5.81%+ 1.04%+(a)
1.00 4.82 1,234,026 0.80(a) 4.71 1.05(a)
1.00 4.75 2,718,028 0.80(a) 4.71 1.04(a)
1.00 5.08 92,974 0.80 4.98 0.85
1.00 4.80 9,010 0.80 4.71 0.85
1.00 4.49 40 0.67+ 5.25+ 0.74+
1.00 1.74 2 0.55+ 4.98+ 0.63+
$1.00 3.07% $ 16,344 0.55%+(a) 6.06%+ 0.59%+(a)
1.00 5.08 19,552 0.55(a) 4.96 0.60(a)
1.00 0.80 17,970 0.55+(a) 4.96+ 0.59+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF YEAR INCOME/(LOSS) INCOME
--------------------------------------------
<S> <C> <C> <C>
TREASURY
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0301 $(0.0301)
Year ended 3/31/2000........................................ 1.00 0.0493 (0.0493)
Year ended 3/31/1999........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1998........................................ 1.00 0.0531 (0.0531)
Year ended 3/31/1997........................................ 1.00 0.0509 (0.0509)
Period ended 3/31/1996*..................................... 1.00 0.0458 (0.0458)#
Year ended 5/31/1995........................................ 1.00 0.0494 (0.0494)#
PRIMARY B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0289 $(0.0289)
Year ended 3/31/2000........................................ 1.00 0.0468 (0.0468)
Year ended 3/31/1999........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1998........................................ 1.00 0.0506 (0.0506)
Year ended 3/31/1997........................................ 1.00 0.0484 (0.0484)
Period ended 3/31/1996*..................................... 1.00 0.0437 (0.0437)#
Period ended 5/31/1995**.................................... 1.00 0.0449 (0.0449)#
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0284 $(0.0284)
Year ended 3/31/2000........................................ 1.00 0.0458 (0.0458)
Year ended 3/31/1999........................................ 1.00 0.0464 (0.0464)
Year ended 3/31/1998........................................ 1.00 0.0496 (0.0496)
Year ended 3/31/1997........................................ 1.00 0.0474 (0.0474)
Period ended 3/31/1996*..................................... 1.00 0.0429 (0.0429)#
Year ended 5/31/1995........................................ 1.00 0.0457 (0.0457)#
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0289 $(0.0289)
Year ended 3/31/2000........................................ 1.00 0.0468 (0.0468)
Year ended 3/31/1999........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1998........................................ 1.00 0.0506 (0.0506)
Year ended 3/31/1997........................................ 1.00 0.0484 (0.0484)
Period ended 3/31/1996*..................................... 1.00 0.0437 (0.0437)#
Year ended 5/31/1995........................................ 1.00 0.0468 (0.0468)#
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0289 $(0.0289)
Year ended 3/31/2000........................................ 1.00 0.0468 (0.0468)
Year ended 3/31/1999........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1998........................................ 1.00 0.0506 (0.0506)
Year ended 3/31/1997........................................ 1.00 0.0484 (0.0484)
Period ended 3/31/1996*..................................... 1.00 0.0437 (0.0437)#
Year ended 5/31/1995........................................ 1.00 0.0468 (0.0468)#
DAILY SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0276 $(0.0276)
Year ended 3/31/2000........................................ 1.00 0.0443 (0.0443)
Year ended 3/31/1999........................................ 1.00 0.0449 (0.0449)
Year ended 3/31/1998........................................ 1.00 0.0481 (0.0481)
Year ended 3/31/1997........................................ 1.00 0.0455 (0.0455)
Period ended 3/31/1996*..................................... 1.00 0.0404 (0.0404)
Period ended 5/31/1995**.................................... 1.00 0.0167 (0.0167)
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the deduction
of any applicable sales charges.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.
** Treasury Primary B and Daily Shares commenced operations on June 16, 1994
and February 9, 1995, respectively.
# Amount includes distributions from net realized gains of less than $0.0001
per share.
(a) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF NET RATIO OF
OPERATING INVESTMENT OPERATING
NET ASSET NET ASSETS EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL END OF YEAR AVERAGE NET AVERAGE NET AVERAGE NET
END OF YEAR RETURN++ (000) ASSETS ASSETS ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.05% $ 488,611 0.30%+(a) 6.01%+ 0.35%+(a)
1.00 5.04 503,511 0.30(a) 4.90 0.35(a)
1.00 5.10 766,456 0.30(a) 5.01 0.35(a)
1.00 5.43 615,185 0.30 5.31 0.35
1.00 5.22 1,345,585 0.30 5.09 0.35
1.00 4.67 821,030 0.30+ 5.52+ 0.37+
1.00 5.05 2,896,868 0.30 4.99 0.35
$1.00 2.92% $ 9,270 0.55%+(a) 5.76%+ 0.60%+(a)
1.00 4.78 11,496 0.55(a) 4.65 0.60(a)
1.00 4.84 20,315 0.55(a) 4.76 0.60(a)
1.00 5.18 11,764 0.55 5.06 0.60
1.00 4.96 55,170 0.55 4.84 0.60
1.00 4.46 47,488 0.55+ 5.27+ 0.62+
1.00 4.56 56,815 0.55+ 4.74+ 0.60+
$1.00 2.87% $ 935,247 0.65%+(a) 5.66%+ 0.70%+(a)
1.00 4.68 1,044,726 0.65(a) 4.55 0.70(a)
1.00 4.74 1,176,233 0.65(a) 4.66 0.70(a)
1.00 5.06 1,361,214 0.65 4.96 0.70
1.00 4.85 719,199 0.65 4.74 0.70
1.00 4.36 89,584 0.65+ 5.17+ 0.72+
1.00 4.65 107,475 0.67 4.62 0.72
$1.00 2.92% $ 179,556 0.55%+(a) 5.76%+ 0.70%+(a)
1.00 4.78 196,332 0.55(a) 4.65 0.70(a)
1.00 4.84 261,840 0.55(a) 4.76 0.70(a)
1.00 5.18 546,833 0.55 5.06 0.60
1.00 4.96 973,297 0.55 4.84 0.60
1.00 4.46 1,525,048 0.55+ 5.27+ 0.62+
1.00 4.76 52,564 0.56 4.73 0.61
$1.00 2.92% $ 114 0.55%+(a) 5.76%+ 0.60%+(a)
1.00 4.78 170 0.55(a) 4.65 0.60(a)
1.00 4.84 175 0.55(a) 4.76 0.60(a)
1.00 5.18 8,295 0.55 5.06 0.60
1.00 4.96 13,868 0.55 4.84 0.60
1.00 4.46 8,783 0.55+ 5.27+ 0.62+
1.00 4.76 6,373 0.56 4.73 0.61
$1.00 2.79% $ 110,817 0.80%+(a) 5.51%+ 1.05%+(a)
1.00 4.52 128,299 0.80(a) 4.40 1.05(a)
1.00 4.58 219,592 0.80(a) 4.51 1.05(a)
1.00 4.92 178,284 0.80 4.81 0.85
1.00 4.66 16,323 0.80 4.59 0.85
1.00 4.09 2 0.64+ 5.18+ 0.71+
1.00 1.67 2 0.55+ 4.74+ 0.60+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF YEAR INCOME/(LOSS) INCOME
----------------------------------------
<S> <C> <C> <C>
GOVERNMENT MONEY MARKET
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0309 $(0.0309)
Year ended 3/31/2000........................................ 1.00 0.0501 (0.0501)
Year ended 3/31/1999........................................ 1.00 0.0497 (0.0497)
Year ended 3/31/1998........................................ 1.00 0.0524 (0.0524)
Year ended 3/31/1997........................................ 1.00 0.0503 (0.0503)
Period ended 3/31/1996*..................................... 1.00 0.0173 (0.0173)
Year ended 11/30/1995....................................... 1.00 0.0558 (0.0558)
PRIMARY B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0296 $(0.0296)
Year ended 3/31/2000........................................ 1.00 0.0475 (0.0475)
Year ended 3/31/1999........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1998........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1997........................................ 1.00 0.0478 (0.0478)
Period ended 3/31/1996*..................................... 1.00 0.0165 (0.0165)
Year ended 11/30/1995....................................... 1.00 0.0533 (0.0533)
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0291 $(0.0291)
Year ended 3/31/2000........................................ 1.00 0.0465 (0.0465)
Year ended 3/31/1999........................................ 1.00 0.0462 (0.0462)
Year ended 3/31/1998........................................ 1.00 0.0489 (0.0489)
Year ended 3/31/1997........................................ 1.00 0.0468 (0.0468)
Period ended 3/31/1996*..................................... 1.00 0.0162 (0.0162)
Year ended 11/30/1995....................................... 1.00 0.0522 (0.0522)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0296 $(0.0296)
Year ended 3/31/2000........................................ 1.00 0.0475 (0.0475)
Year ended 3/31/1999........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1998........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1997........................................ 1.00 0.0478 (0.0478)
Period ended 3/31/1996*..................................... 1.00 0.0165 (0.0165)
Year ended 11/30/1995....................................... 1.00 0.0532 (0.0532)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0296 $(0.0296)
Year ended 3/31/2000........................................ 1.00 0.0476 (0.0476)
Year ended 3/31/1999........................................ 1.00 0.0472 (0.0472)
Year ended 3/31/1998........................................ 1.00 0.0499 (0.0499)
Year ended 3/31/1997........................................ 1.00 0.0478 (0.0478)
Period ended 3/31/1996*..................................... 1.00 0.0165 (0.0165)
Year ended 11/30/1995....................................... 1.00 0.0532 (0.0532)
DAILY SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0284 $(0.0284)
Year ended 3/31/2000........................................ 1.00 0.0450 (0.0450)
Year ended 3/31/1999........................................ 1.00 0.0447 (0.0447)
Year ended 3/31/1998........................................ 1.00 0.0474 (0.0474)
Year ended 3/31/1997........................................ 1.00 0.0453 (0.0453)
Period ended 3/31/1996*..................................... 1.00 0.0157 (0.0157)
Period ended 11/30/1995**................................... 1.00 0.0418 (0.0418)
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the deduction
of any applicable sales charges.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
** Government Money Market Daily Shares commenced operations on February 10,
1995.
(a) The effect of the custodial expense offset (Note 2) on the operating expense
ratio, with and without waivers and/or expense reimbursements, was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
OPERATING NET INVESTMENT OPERATING
NET ASSET NET ASSETS EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL END OF YEAR AVERAGE NET AVERAGE NET AVERAGE NET
END OF YEAR RETURN++ (000) ASSETS ASSETS ASSETS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.12% $243,233 0.30%+(a) 6.15%+ 0.40%+(a)
1.00 5.12 270,879 0.30(a) 5.06 0.44(a)
1.00 5.08 275,677 0.30(a) 4.97 0.58(a)
1.00 5.39 217,506 0.30 5.25 0.59
1.00 5.18 299,395 0.30 5.03 0.57
1.00 1.74 336,771 0.30+ 5.20+ 0.59+
1.00 5.72 332,895 0.30 5.58 0.57
$1.00 3.00% $ 700 0.55%+(a) 5.90%+ 0.65%+(a)
1.00 4.86 583 0.55(a) 4.81 0.69(a)
1.00 4.82 1,298 0.55(a) 4.72 0.83(a)
1.00 5.12 1,812 0.55 5.00 0.84
1.00 4.93 19,450 0.55 4.78 0.82
1.00 1.66 31,581 0.55+ 4.95+ 0.84+
1.00 5.45 27,122 0.55 5.33 0.82
$1.00 2.94% $ 7,455 0.65%+(a) 5.80%+ 0.75%+(a)
1.00 4.75 16,002 0.65(a) 4.71 0.79(a)
1.00 4.72 13,924 0.65(a) 4.62 0.93(a)
1.00 5.01 23,806 0.65 4.90 0.94
1.00 4.80 18,717 0.65 4.68 0.92
1.00 1.62 48,742 0.65+ 4.85+ 0.94+
1.00 5.34 26,175 0.65 5.23 0.92
$1.00 3.00% $ 72,373 0.55%+(a) 5.90%+ 0.75%+(a)
1.00 4.86 81,334 0.55(a) 4.81 0.79(a)
1.00 4.82 82,080 0.55(a) 4.72 0.93(a)
1.00 5.12 77,060 0.55 5.00 0.84
1.00 4.93 27,750 0.55 4.78 0.82
1.00 1.66 62,617 0.55+ 4.95+ 0.84+
1.00 5.45 27,079 0.55 5.33 0.82
$1.00 3.00% $ 467 0.55%+(a) 5.90%+ 0.65%+(a)
1.00 4.86 458 0.55(a) 4.81 0.69(a)
1.00 4.82 42 0.55(a) 4.72 0.83(a)
1.00 5.12 3,369 0.55 5.00 0.84
1.00 4.93 2,142 0.55 4.78 0.82
1.00 1.66 1,731 0.55+ 4.95+ 0.84+
1.00 5.44 4,414 0.55 5.33 0.82
$1.00 2.87% $ 15,632 0.80%+(a) 5.65%+ 1.10%+(a)
1.00 4.60 17,939 0.80(a) 4.56 1.14(a)
1.00 4.56 43,430 0.80(a) 4.47 1.28(a)
1.00 4.85 6,567 0.80 4.75 1.09
1.00 4.63 7,860 0.80 4.53 1.07
1.00 1.58 2 0.71+ 4.79+ 1.00+
1.00 4.38 2 0.55+ 5.33+ 0.82+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF YEAR INCOME/(LOSS) INCOME
----------------------------------------
<S> <C> <C> <C>
TAX EXEMPT
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0201 $(0.0201)
Year ended 3/31/2000........................................ 1.00 0.0321 (0.0321)
Year ended 3/31/1999........................................ 1.00 0.0312 (0.0312)
Year ended 3/31/1998........................................ 1.00 0.0345 (0.0345)
Year ended 3/31/1997........................................ 1.00 0.0324 (0.0324)
Period ended 3/31/1996*..................................... 1.00 0.0112 (0.0112)
Year ended 11/30/1995....................................... 1.00 0.0361 (0.0361)
PRIMARY B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0189 $(0.0189)
Year ended 3/31/2000........................................ 1.00 0.0296 (0.0296)
Year ended 3/31/1999........................................ 1.00 0.0288 (0.0288)
Year ended 3/31/1998........................................ 1.00 0.0320 (0.0320)
Year ended 3/31/1997........................................ 1.00 0.0300 (0.0300)
Period ended 3/31/1996*..................................... 1.00 0.0104 (0.0104)
Year ended 11/30/1995....................................... 1.00 0.0335 (0.0335)
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0184 $(0.0184)
Year ended 3/31/2000........................................ 1.00 0.0286 (0.0286)
Year ended 3/31/1999........................................ 1.00 0.0278 (0.0278)
Year ended 3/31/1998........................................ 1.00 0.0316 (0.0316)
Year ended 3/31/1997........................................ 1.00 0.0300 (0.0300)
Period ended 3/31/1996*..................................... 1.00 0.0104 (0.0104)
Year ended 11/30/1995....................................... 1.00 0.0335 (0.0335)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0189 $(0.0189)
Year ended 3/31/2000........................................ 1.00 0.0298 (0.0298)
Year ended 3/31/1999........................................ 1.00 0.0293 (0.0293)
Year ended 3/31/1998........................................ 1.00 0.0325 (0.0325)
Year ended 3/31/1997........................................ 1.00 0.0307 (0.0307)
Period ended 3/31/1996*..................................... 1.00 0.0106 (0.0106)
Year ended 11/30/1995....................................... 1.00 0.0342 (0.0342)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0189 $(0.0189)
Year ended 3/31/2000........................................ 1.00 0.0296 (0.0296)
Year ended 3/31/1999........................................ 1.00 0.0288 (0.0288)
Year ended 3/31/1998........................................ 1.00 0.0323 (0.0323)
Year ended 3/31/1997........................................ 1.00 0.0311 (0.0311)
Period ended 3/31/1996*..................................... 1.00 0.0107 (0.0107)
Year ended 11/30/1995....................................... 1.00 0.0346 (0.0346)
DAILY SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0176 $(0.0176)
Year ended 3/31/2000........................................ 1.00 0.0271 (0.0271)
Year ended 3/31/1999........................................ 1.00 0.0263 (0.0263)
Year ended 3/31/1998........................................ 1.00 0.0295 (0.0295)
Year ended 3/31/1997........................................ 1.00 0.0270 (0.0270)
Period ended 3/31/1996*..................................... 1.00 0.0090 (0.0090)
Period ended 11/30/1995**................................... 1.00 0.0243 (0.0243)
</TABLE>
---------------
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the deduction
of any applicable sales charges.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
November 30.
** Tax Exempt Daily Shares commenced operations on February 10, 1995.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
OPERATING NET INVESTMENT OPERATING
NET ASSET NET ASSETS EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL END OF YEAR AVERAGE NET AVERAGE NET AVERAGE NET
END OF YEAR RETURN++ (000) ASSETS ASSETS ASSETS
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.03% $2,035,901 0.30%+ 4.00%+ 0.34%+
1.00 3.26 2,037,742 0.30 3.20 0.42
1.00 3.17 2,132,148 0.30(a) 3.11 0.55(a)
1.00 3.48 2,001,083 0.30(a) 3.43 0.56(a)
1.00 3.29 1,184,313 0.30 3.25 0.55
1.00 1.12 1,078,764 0.30+ 3.35+ 0.58+
1.00 3.68 905,125 0.30 3.62 0.57
$1.00 1.90% $ 5,499 0.55%+ 3.75%+ 0.59%+
1.00 3.00 6,835 0.55 2.95 0.67
1.00 2.91 10,236 0.55(a) 2.86 0.80(a)
1.00 3.22 8,726 0.55(a) 3.18 0.81(a)
1.00 3.04 13,151 0.55 3.00 0.80
1.00 1.04 9,370 0.55+ 3.10+ 0.83+
1.00 3.39 11,666 0.55 3.37 0.82
$1.00 1.85% $ 40,595 0.65%+ 3.65%+ 0.69%+
1.00 2.90 43,934 0.65 2.85 0.77
1.00 2.81 53,693 0.65(a) 2.76 0.90(a)
1.00 3.20 171,786 0.58(a) 3.15 0.84(a)
1.00 3.04 145,337 0.55 3.00 0.80
1.00 1.04 128,414 0.55+ 3.10+ 0.83+
1.00 3.40 126,207 0.55 3.37 0.82
$1.00 1.90% $ 211,919 0.55%+ 3.75%+ 0.69%+
1.00 3.02 204,150 0.53 2.97 0.75
1.00 2.97 259,469 0.50(a) 2.91 0.90(a)
1.00 3.30 249,819 0.50(a) 3.23 0.76(a)
1.00 3.11 228,601 0.50 3.05 0.75
1.00 1.06 132,914 0.50+ 3.15+ 0.78+
1.00 3.47 86,374 0.50 3.42 0.77
$1.00 1.90% $ 336 0.55%+ 3.75%+ 0.59%+
1.00 3.00 326 0.55 2.95 0.67
1.00 2.91 218 0.55(a) 2.86 0.80(a)
1.00 3.26 67,511 0.48(a) 3.25 0.74(a)
1.00 3.15 62,761 0.45 3.10 0.70
1.00 1.07 66,743 0.45+ 3.20+ 0.73+
1.00 3.52 41,409 0.45 3.47 0.72
$1.00 1.77% $ 97,373 0.80%+ 3.50%+ 1.04%+
1.00 2.74 128,386 0.80 2.70 1.12
1.00 2.66 333,210 0.80(a) 2.61 1.25(a)
1.00 2.98 12,541 0.80(a) 2.93 1.06(a)
1.00 2.73 2,334 0.80 2.75 1.05
1.00 0.91 2 0.69+ 2.96+ 0.97+
1.00 2.61 2 0.45+ 3.47+ 0.72+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust") and Nations Fund, Inc. (the "Company") are each
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company. At September 30, 2000, the Trust
offered thirty-four separate portfolios and the Company offered six separate
portfolios. These financial statements pertain only to the money market
portfolios of the Trust and the Company: Prime Fund, Treasury Fund, Government
Money Market Fund and Tax Exempt Fund (each a "Fund" and collectively, the
"Funds"). Financial statements for the other portfolios of the Trust and the
Company are presented under separate cover. The Funds currently offer six
classes of shares: Primary A Shares, Primary B Shares, Investor A Shares,
Investor B Shares, Investor C Shares and Daily Shares. The Prime Fund also
offers Marsico Shares. Shareholders of a Fund have equal voting rights on
matters affecting all shareholders of the Fund. In addition, each class of
shares of a Fund has exclusive voting rights on matters that relate solely to
that class and separate voting rights on matters in which the interests of one
class differ from the interests of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
followed by the Funds in the preparation of their financial statements.
Securities valuation: Securities are valued on the basis of amortized cost,
which approximates current market value. Amortized cost valuation involves
initially valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or accretion premium, as long as the
effect of fluctuating interest rates on the market value of the instrument is
not significant. Restricted securities and certain other assets may be valued
under procedures adopted by the Board of Trustees/Directors.
Repurchase agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, a Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the obligation of a Fund to resell, the underlying
debt obligation at an agreed-upon price and date, 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 the Fund seeks to assert its right.
The Funds' investment adviser and sub-adviser, under the oversight of the Board
of Trustees/ Directors, monitor 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.
Reverse repurchase agreements: Each Fund may enter into reverse repurchase
agreements with institutions that the Fund's investment sub-adviser has
determined are creditworthy. Under the terms of a typical reverse repurchase
agreement, a Fund sells securities and agrees to repurchase them at a mutually
agreed upon date and price. At the time the Fund enters into a reverse
repurchase agreement, it establishes a segregated account with its custodian
bank in which it will maintain cash, U.S. Government securities or other
appropriate liquid securities at least equal in value to the Fund's obligations
arising under the reverse repurchase agreement. Reverse repurchase agreements
involve the risk that the market value of the securities purchased with the
proceeds from the sale of securities received by the Fund may decline below the
price of the securities that the Fund is obligated to repurchase. In the event
the buyer of securities under a reverse repurchase agreement files for
bankruptcy or becomes insolvent, the Fund's use of proceeds of the agreement may
be restricted pending a determination by the other party, or its trustee or
receiver, whether to enforce the Fund's obligation to repurchase the securities.
Securities subject to repurchase under reverse repurchase agreements are
designated in the Statements of net assets.
At September 30, 2000, the Treasury Fund had no reverse repurchase agreements
outstanding. The average daily balance of reverse repurchase agreements
outstanding for the Treasury Fund during the six months ended September 30, 2000
was $284,280,238. Prime Fund, Government Money Market Fund and Tax Exempt Fund
did not enter into any reverse repurchase
40
<PAGE> 45
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
agreements during the six months ended September 30, 2000.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums calculated ratably, is
earned from settlement date and recorded on an accrual basis. Dividend income is
recorded on ex-dividend date. Each Fund's investment income and realized and
unrealized gains and losses are allocated among its share classes based upon the
relative net assets of each class of shares.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after trade date; interest income is not accrued until
settlement date. At the time a Fund enters into such transactions, it instructs
the custodian to segregate assets with a current value at least equal to the
amount of its when-issued or delayed-delivery purchase commitments.
Dividends and distributions to shareholders: It is the policy of each Fund to
declare dividends from net investment income daily and to pay such dividends
monthly. Each Fund will distribute net realized short-term capital gains
annually after the fiscal year in which the capital gains were earned or more
frequently to seek to maintain a net asset value of $1.00 per share, unless
offset by any available capital loss carryforward. Income distributions and
capital gain distributions on a Fund level are determined in accordance with
federal income tax regulations which may differ from accounting principles
generally accepted in the United States of America.
Federal income tax: Each Fund intends to continue to qualify as a regulated
investment company by complying with the applicable requirements of the Internal
Revenue Code of 1986, as amended, and by distributing substantially all of its
earnings to shareholders. Therefore, no provision is made for federal income or
excise taxes.
Expenses: General expenses of the Trust and the Company are allocated to the
Funds based upon their relative net assets or other expense allocation
methodologies determined by the nature of the expense. Expenses directly
attributable to a Fund or class of shares are charged to such Fund or class.
Cash flow information: Cash, as used in the Statement of cash flows, is the
amount reported in the Statements of net assets and represents cash on hand at a
Fund's custodian. The Trust and the Company issue and redeem shares, invest in
securities, and distribute dividends from net investment income and net capital
gains (which are either paid in cash or reinvested at the discretion of
shareholders). These activities are reported in the Statements of changes in net
assets. Information on cash payments is presented in the Statement of cash flows
for Treasury Fund.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Each of the Trust and the Company has entered into an investment advisory
agreement (the "Investment Advisory Agreements") with Banc of America Advisors,
Inc. ("BAAI"), a wholly-owned subsidiary of Bank of America, N.A. ("Bank of
America"), which in turn is a wholly-owned banking subsidiary of Bank of America
Corporation, a bank holding company organized as a Delaware corporation,
pursuant to which BAAI provides investment advisory services to the Funds. Under
the terms of the Investment Advisory Agreements, BAAI is entitled to receive an
advisory fee, calculated daily and payable monthly, at the maximum annual rate
of 0.20% of each Fund's average daily net assets.
Each of the Trust and the Company has entered into a sub-advisory agreement with
BAAI and Banc of America Capital Management, Inc. ("BACAP"), a wholly-owned
subsidiary of Bank of America, pursuant to which BACAP is entitled to receive a
sub-advisory fee from BAAI at the maximum annual rate of 0.055% of each Fund's
average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust and
the Company. Under the co-administration agreements, Stephens and BAAI are
currently entitled to receive a combined fee, computed daily and paid monthly,
at the maximum annual rate of 0.10% of each Fund's average daily net assets. The
Bank of New York ("BNY") serves as sub-administrator of the Trust and the
Company pursuant to agreements with BAAI. For the six months ended September 30,
2000, Stephens and BAAI earned 0.06% and 0.01%, respectively, of the Funds'
average daily net assets for their co-administration services.
BAAI and/or the sub-adviser and Stephens may, from time to time, reduce their
fees payable by each Fund. Effective August 1, 2000, BAAI and/or the sub-adviser
and Stephens agreed to reimburse expenses and/or waive their fees until July 31,
2001 to the extent that total expenses (excluding shareholder servicing and
distribution fees) exceed an annual rate of 0.30% of each Fund's average daily
net assets.
41
<PAGE> 46
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
BNY serves as the custodian of the Trust's and the Company's assets. For the six
months ended September 30, 2000, expenses of the Prime, Treasury and Government
Money Market Funds were reduced by $26,206 under expense offset arrangements
with BNY. The Funds could have invested a portion of the assets utilized in
connection with the expense offset arrangements in an income producing asset if
they had not entered into such arrangements. The Tax Exempt Fund does not
participate in the expense offset arrangement.
No officer, director or employee of Bank of America, BAAI or BACAP, or any
affiliate thereof, receives any compensation from the Trust and the Company for
serving as Trustee/Director or Officer of the Trust and the Company.
PFPC Inc. ("PFPC") serves as the transfer agent for the Funds' shares. Bank of
America serves as the sub-transfer agent for the Primary A and Primary B Shares
of the Funds. For the six months ended September 30, 2000, Bank of America
earned approximately $7,859 for providing such services. Stephens also serves as
distributor of the Funds' shares.
The Trust's and the Company's eligible Trustees/ Directors, may participate in
non-qualified deferred compensation and retirement plans which may be terminated
at any time. All benefits provided under these plans are unfunded and any
payments to plan participants are paid solely out of the Funds' assets. Income
earned on each plan participant's deferral account is tied to the rate of return
of the eligible mutual funds selected by the participants or, if no funds are
selected, to the rate of return of the Treasury Fund. The expense for the
deferred compensation and retirement plans is included in "Trustees'/Directors'
fees and expenses" in the Statements of operations.
A significant portion of each Fund's Primary A Shares represents investments by
fiduciary accounts over which Bank of America has either sole or joint
investment discretion.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
The Trust and the Company each has adopted shareholder servicing plans and
distribution plans for the Investor A, Investor B and Daily Shares of each Fund
and shareholder servicing plans for the Primary B and the Investor C Shares of
each Fund and Marsico Shares of the Prime Fund. The shareholder servicing plans
permit the Funds to compensate or reimburse servicing agents for shareholder
services provided by the servicing agents. The distribution plans, adopted
pursuant to Rule 12b-1 under the 1940 Act, permit the Funds to compensate or
reimburse the distributor for activities or expenses primarily intended to
result in the sale of the classes' shares. Payments are made at an annual rate,
as a percentage of average daily net assets, set from time to time by the Boards
of Trustees/Directors, and are charged as expenses of each Fund directly to the
applicable class. A substantial portion of the expenses incurred pursuant to
these plans is paid to affiliates of Bank of America and BAAI.
At September 30, 2000, the rates in effect and plan limits, as a percentage of
average daily net assets, were as follows:
<TABLE>
<CAPTION>
CURRENT PLAN
RATE LIMIT
----------------
<S> <C> <C>
Primary B, Investor A, Investor B,
Investor C, Daily and Marsico
Shareholder Servicing Plans........ 0.25% 0.25%
Investor A Distribution Plan......... 0.10% 0.10%
Investor B Distribution Plan......... 0.00% 0.10%
Daily Distribution Plan.............. 0.25% 0.45%
</TABLE>
4. SHARES OF BENEFICIAL INTEREST/CAPITAL STOCK
At September 30, 2000, an unlimited number of shares of beneficial interest
without par value were authorized for the Trust and 480,000,000,000 shares of
$.001 par value capital stock were authorized for the Company. The Trust's
Declaration of Trust and the Company's Articles of Incorporation authorize the
Board of Trustees/ Directors to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedules of capital stock activity.
5. RESTRICTED SECURITIES
Certain securities may be subject to legal restrictions and may be difficult to
sell. No Fund will invest more than 10% of the value of its net assets in
securities that are considered illiquid.
The following securities are considered both illiquid and restricted as to
resale. Accordingly, they are valued at their fair value under procedures
adopted by the Board of Trustees/Directors.
42
<PAGE> 47
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
PRIME
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Anchor National Life Insurance Company:
6.839%+ 12/01/00++................................... 12/01/98 $25,000 $1.00 $25,000 0.4% $25,000
6.890%+ 10/02/00++................................... 01/01/99 50,000 1.00 50,000 0.9 50,000
First Allmerica Financial Life Insurance Company:
6.760%+ 11/24/00..................................... 08/24/99 50,000 1.00 50,000 0.9 50,000
Goldman Sachs Group, Inc.:
6.840% 02/15/01...................................... 08/16/00 25,000 1.00 25,000 0.4 25,000
6.800% 02/27/01...................................... 09/01/00 25,000 1.00 25,000 0.4 25,000
6.830% 06/04/01...................................... 09/07/00 25,000 1.00 25,000 0.4 25,000
Sun America Life Insurance Company of America:
6.869%+ 10/02/00++................................... 10/01/98 50,000 1.00 50,000 0.9 50,000
Travelers Life Insurance Company:
6.688%+ 10/05/00++................................... 02/03/99 25,000 1.00 25,000 0.4 25,000
</TABLE>
---------------
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
++ Reset date.
TAX EXEMPT
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Bexar County, Texas Housing Finance Corporation
Multi-Family Housing Revenue, Series 1998PT-1041,
AMT, (Merrill Lynch Guarantee, Merrill Lynch SBPA),
5.770%+ 06/01/35..................................... 06/26/99 $10,190 $1.00 $10,190 0.4% $10,190
Broward County, Florida Housing Finance Authority
Multi-Family Housing Revenue, (Harbour Town Project)
Series 1999PT-1166, (Merrill Lynch Guarantee, Merrill
Lynch SBPA),
5.770%+ 12/01/25..................................... 07/01/99 11,790 1.00 11,790 0.5 11,790
Nevada GO, Series 2000PT-403,
4.500%+ 06/14/01..................................... 06/30/00 9,925 1.00 9,925 0.4 9,925
South Carolina Jobs Economic Development Authority
Revenue, (St. Francis Hospital--Bon Secours Project)
Series 1999PT-328, (Merrill Lynch Guarantee, Merrill
Lynch SBPA),
5.770%+ 01/01/01..................................... 02/03/00 20,000 1.00 20,000 0.8 20,000
Washington State, Motor Fuel Tax GO, Series 2000PT-433,
(Merrill Lynch SBPA),
4.500%+ 06/01/08..................................... 06/30/00 19,865 1.00 19,865 0.8 19,865
</TABLE>
---------------
+ Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 2000.
The following security of the Prime Fund is restricted as to resale; however, it
is considered liquid due to the put feature which allows the Fund to put the
security back to the issuer at par value within seven calendar days.
43
<PAGE> 48
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GE Life and Annuity Assurance Company
6.599%+ 10/02/00++................................... 02/01/99 $25,000 $1.00 $25,000 0.4% $25,000
</TABLE>
---------------
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
++ Reset date.
6. LINES OF CREDIT
The Trust and the Company each participate with other Nations Funds in an
uncommitted line of credit provided by BNY under a line of credit agreement (the
"Agreement"). Advances under the Agreement are taken primarily for temporary or
emergency purposes, including the meeting of redemption requests that otherwise
might require the untimely disposition of securities. Interest on borrowings is
payable at a specified Federal Funds rate plus 0.50% on an annualized basis.
Each participating Fund maintains a ratio of no less than 4 to 1 net assets (not
including amounts borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement. For the six months ended September 30,
2000, there were no borrowings by the Funds under the Agreement.
The Trust and the Company also participate with other Nations Funds in a
committed line of credit provided by BNY. Interest on borrowings under the
committed line is payable at a specified Federal Funds rate plus 0.50% on an
annualized basis. A facility fee of 0.09% per annum of the total amounts
available under the line of credit is charged, of which each Fund pays its pro
rata share. This fee is paid quarterly in arrears. Each participating Fund is
required to maintain an asset coverage ratio of at least 300% under the terms of
the arrangement. For the six months ended September 30, 2000, there were no
borrowings by the Funds under the committed line of credit.
7. CAPITAL LOSS CARRYFORWARD
At March 31, 2000, the Funds had available for federal income tax purposes the
following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2002 2003 2004 2005 2006 2007 2008
(000) (000) (000) (000) (000) (000) (000)
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Prime...................................................... $-- $131 $35 $436 $23 $-- $41
Treasury................................................... 16 26 95 31 14 9 --
Government Money Market.................................... -- 58 2 -- -- -- --
</TABLE>
At March 31, 2000, Government Money Market Fund utilized capital losses of
$1,131 during the year.
Under current tax law, capital losses realized after October 31 may be deferred
and treated as occurring on the first day of the following fiscal year. For the
year ended March 31, 2000, the Prime Fund elected to defer losses of $901
occurring between November 1, 1999 and March 31, 2000 under these rules.
44
<PAGE> 49
P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.321.7854
Nations Funds
MONEYSAR (9/00)
