Dear Shareholder:
We are pleased to present this Semiannual Report for Nations Institutional
Reserves, formerly known as The Capitol Mutual Funds. The Nations Institu-
tional Reserves consists of Nations Cash Reserves, Nations Treasury Re-
serves, Nations Government Reserves and Nations Municipal Reserves. We
have renamed the Funds to better reflect their suitability as premier
short-term institutional investment vehicles. For the six-month period
ended October 31, 1995, the Funds continued to provide a high level of
performance relative to competitive funds within the industry. Combined
assets reached $1.4 billion by the end of the reporting period.
ECONOMIC SUMMARY
Following the wave of monetary tightening in 1994 and 1995, yields on in-
stitutional money market funds reached their highest levels in over three
years. The impact of these high short-term rates was a relatively flat
yield curve. The spread between the Lehman Long-Term Treasury Index and
the 90-day U.S. Treasury Bill ("T-Bill") as of the beginning of the re-
porting period was only 171 basis points. By mid-summer, however, infla-
tionary pressures eased and the Federal Reserve Board lowered rates by 25
basis points to help ward off any possibility of recession. This monetary
adjustment resulted in lower money market yields. The 90-day T-Bill yield
dropped from 5.69% to 5.32% and, the 30-day yield for the IBC/Donoghue
First Tier Institutional Average fell from 5.83% to 5.50% for the period.*
PORTFOLIO OVERVIEW
The Nations Institutional Reserves portfolios were positioned to maintain
competitive yields during the changing interest rate environment. The 30-
day yields as of October 31, 1995 for Nations Cash Reserves, Nations Trea-
sury Reserves, Nations Government Reserves and Nations Municipal Reserves
ranked among the top 10 yields in their respective IBC/Donoghue catego-
ries.** Given the competitive nature of the institutional money market
sector, this was no small achievement. Weighted average maturities across
the portfolios were longer than during the previous six-month period,
ranging from 54 to 82 days. The extension of maturities combined with ef-
fective security selection were the drivers that kept yields consistently
higher relative to the money market fund industry as a whole.
SIX-MONTH PERFORMANCE OF 7-DAY YIELDS FOR NATIONS CASH RESERVES -- CAPITAL
SHARES***
[ ] Nations Cash Reserves--Capital Shares [ ] IBC/Donoghue's First Tier
Inst-only Average*
<TABLE>
<CAPTION>
CASH INSTITUTIONAL
RESERVES A FIRST TIER
<S> <C> <C>
April 6.04 5.85
May 6.06 5.83
June 6.05 5.79
July 5.84 5.66
August 5.80 5.57
September 5.87 5.54
October 5.74 5.52
* IBC/Donoghue is an independent monitor of money market fund perfor-
mance.
** Nations Cash Reserves: IBC/Donoghue First Tier Institutional Only
(110 funds); Nations Treasury Reserves and Nations Government Re-
serves: IBC/Donoghue Government Only Institutional Only (149 funds);
Nations Municipal Reserves:
IBC/Donoghue Tax Free Institutional Only (60 funds).
*** Performance for other classes will vary.
</TABLE>
<PAGE>
30-DAY YIELDS****
as of October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
CAPITAL LIQUIDITY ADVISER IBC/DONOGHUE PEER
SHARES SHARES SHARES GROUP AVERAGES*****
<S> <C> <C> <C> <C>
Nations Cash Reserves 5.74% 5.59% 5.49% 1st Tier-Inst-only 5.50%
Nations Treasury Reserves 5.62% 5.47% 5.37% Government-Inst-only 5.35%
Nations Government Reserves 5.65% 5.45% 5.35% Tax Free-Inst-only 3.48%
Nations Municipal Reserves 3.66% 3.51% 3.41%
</TABLE>
CURRENT 7-DAY YIELDS****
as of October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
CAPITAL LIQUIDITY ADVISER
SHARES SHARES SHARES
<S> <C> <C> <C>
Nations Cash Reserves 5.74% 5.59% 5.49%
Nations Treasury Reserves 5.62% 5.47% 5.37%
Nations Government Reserves 5.59% 5.44% 5.34%
Nations Municipal Reserves 3.78% 3.63% 3.53%
</TABLE>
The attached financial report provides more specific information on your
portfolio investments. Please review it carefully. We thank you for choos-
ing Nations Institutional Reserves to pursue your short-term investment
needs.
Sincerely,
A. Max Walker
President and Chairman of the Board
October 31, 1995
**** The 30-day and 7-day net annualized yields are based on the average
net income per share for the thirty days ended October 31, 1995, and
the seven days ended on October 31, 1995, respectively, and the of-
fering price on that date. The 30- day yield is compounded and annu-
alized. The yields quoted include the effects of voluntary expense
waivers by the Portfolios' investment adviser. If these waivers were
not in effect, yields would have been lower.
***** Source: Money Market Insight, a monthly publication of IBC/Dono-
ghue, Inc. IBC/Donoghue is an independent money market performance
monitor.
Money market funds seek to maintain a stable net asset value of
$1.00 per share. However, there is no assurance the money market
funds will be able to maintain a stable net asset value of $1.00.
Yields will fluctuate as market conditions change.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
NOT MAY LOSE VALUE
FDIC- NO BANK GUARANTEE
INSURED
Nations Institutional Reserves Distributor: Stephens Inc. Stephens Inc.,
which is not affiliated with NationsBank, N.A., is not a bank and securi-
ties offered by it are not guaranteed by any bank or insured by the FDIC.
Stephens Inc., member NYSE-SIPC.
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT NATIONS CASH RESERVES DATE (NOTE 1)
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT -- EURO
-- 0.7% (Cost $5,000,333)
Mitsubishi Bank Ltd.,
$ 5,000,000 5.860% 01/31/96 $ 5,000,333
COMMERCIAL PAPER -- 30.4%
American Home Products Corpora-
tion,
30,000,000 Discount note# 02/06/96 29,539,250
Countrywide Funding Corporation,
30,000,000 Discount note 11/28/95 29,870,175
Finova Capital Corporation,
9,000,000 Discount note 11/13/95 8,982,750
Newell Company,
30,000,000 Discount note# 11/15/95 29,932,800
Quaker Oats Corporation:
18,000,000 Discount note 11/10/95 17,974,035
12,000,000 Discount note 11/14/95 11,974,997
Sheffield Receivables Corpora-
tion,
30,000,000 Discount note 11/01/95 30,000,000
Sumitomo Corporation of America,
20,000,000 Discount note 03/25/96 19,540,833
Tri-Lateral Capital (U.S.A.)
Inc.,
25,000,000 Discount note# 01/22/96 24,655,486
Total Commercial Paper
(Cost $202,470,326) 202,470,326
CORPORATE OBLIGATIONS -- 13.3%
Chrysler Financial Corporation,
5,000,000 6.000% 06/03/96 4,998,243
CIT Group Holdings,
7,000,000 8.875% 06/15/96 7,121,124
Commercial Credit Corporation,
6,725,000 6.375% 01/01/96 6,711,904
CS First Boston Inc.,
25,000,000 5.910%+ 11/02/95++ 25,000,000
Ford Motor Credit Company,
5,000,000 6.125% 12/01/95 4,995,789
General Motors Acceptance Corpo-
ration,
25,000,000 5.850%+ 11/01/95++ 24,992,869
General Motors Acceptance Corpo-
ration,
<PAGE>
$ 5,000,000 6.138%+ 01/16/96++ $ 5,000,328
International Lease Finance Cor-
poration,
5,000,000 5.750% 01/15/96 4,982,977
Norwest Financial Inc.,
5,000,000 7.250% 11/01/95 5,000,000
Total Corporate Obligations
(Cost $88,803,234) 88,803,234
MEDIUM TERM NOTES -- 5.3%
IBM Credit Corporation,
5,000,000 6.475% 04/04/96 4,999,867
Merrill Lynch & Company,
30,000,000 5.900% 10/30/96 30,000,000
Total Medium Term Notes
(Cost $34,999,867) 34,999,867
PROMISSORY NOTE -- 4.5%
(Cost $30,000,000)
Goldman Sachs Group, Limited
Partnership,**
30,000,000 5.875% 04/16/96 30,000,000
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.8%
Federal National Mortgage Asso-
ciation (FNMA), Convertible
Note,
20,000,000 5.813% 10/04/96 19,994,239
Student Loan Marketing Associa-
tion (SLMA) Note,
5,000,000 5.680%+ 11/07/95++ 5,000,000
Total U.S. Government Agency Obligations
(Cost $24,994,239) 24,994,239
U.S. TREASURY OBLIGATION -- 0.8%
(Cost $5,075,159)
U.S. Treasury Note,
5,000,000 7.875% 07/31/96 5,075,159
REPURCHASE AGREEMENTS -- 43.6%
145,000,000 Agreement with Lehman Brothers, Inc.,
5.880% dated 10/31/95 to be repurchased at
$145,023,683 on 11/01/95, collateralized by
$131,190,000 U.S. Treasury Bonds, with vari-
ous maturities and coupon rates (value
$147,813,448) 145,000,000
145,000,000 Agreement with Merrill Lynch Government Secu-
rities Inc.,
5.880% dated 10/31/95 to be repurchased at
$145,023,683 on 11/01/95, collateralized by
$143,935,000 U.S. Treasury Note, 6.250% due
8/31/00 (value $147,900,285) 145,000,000
Total Repurchase Agreements
(Cost $290,000,000) 290,000,000
<PAGE>
Value
Shares Note
MONEY MARKET FUNDS -- 1.3%
8,611,000 Dreyfus Cash Management Plus Fund $ 8,611,000
264,500 Fidelity Institutional Cash Variable Rate Fund 264,500
Total Money Market Funds
(Cost $8,875,500) 8,875,500
TOTAL INVESTMENTS
(Cost $690,218,658*) 103.7 % 690,218,658
OTHER ASSETS AND LIABILITIES
(NET) (3.7)%
Due from investment adviser 64,504
Other assets 2,326,230
Payable for investment securities purchased (25,000,000)
Dividends payable (2,031,261)
Administration fee payable (19,489)
Shareholder servicing and distribution fees
payable (13,470)
Custodian fees payable (3,322)
Accrued Trustees' fees and expenses (2,525)
Accrued expenses and other payables (75,006)
TOTAL OTHER ASSETS AND LIABILITIES (NET) (24,754,339)
NET ASSETS 100.0 % $665,464,319
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
Capital Shares (formerly Class A Shares):
($594,116,432 / 594,120,261 shares outstand-
ing) $ 1.00
Liquidity Shares (formerly Class B Shares):
($11,630,747 / 11,630,822 shares outstand-
ing) $ 1.00
Adviser Shares (formerly Class C Shares):
($59,717,140 / 59,717,524 shares outstand-
ing) $ 1.00
* Aggregate cost for Federal tax purposes.
** Restricted Security.
+ Floating Rate Note. The interest rate shown reflects the rate currently in
effect.
++ Reset date.
# Securities are not registered under the Securities Act of 1933. These securi-
ties may be resold in transactions exempt from registration to qualified in-
stitutional buyers.
AT OCTOBER 31, 1995 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments
sold $ (4,288)
Paid-in capital 665,468,607
TOTAL NET ASSETS $665,464,319
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT NATIONS TREASURY RESERVES DATE (NOTE 1)
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 34.2%
U.S. TREASURY BILLS -- 26.2%
$ 5,000,000 Discount note# 11/02/95 $ 4,999,233
5,000,000 Discount note# 11/09/95 4,994,222
35,000,000 Discount note# 11/16/95 34,921,452
5,000,000 Discount note# 12/07/95 4,972,400
5,000,000 Discount note# 01/11/96 4,947,440
5,000,000 Discount note# 02/08/96 4,920,250
30,000,000 Discount note# 04/04/96 29,310,430
5,000,000 Discount note# 05/02/96 4,866,817
5,000,000 Discount note# 07/25/96 4,798,267
5,000,000 Discount note 08/22/96 4,777,521
15,000,000 Discount note# 08/22/96 14,332,562
15,000,000 Discount note 10/17/96 14,224,388
132,064,982
U. S. TREASURY NOTES -- 8.0%
5,000,000 4.250%# 11/30/95 4,992,939
5,000,000 4.250% 12/31/95 4,981,729
5,000,000 4.625%# 02/15/96 4,981,875
5,000,000 4.625% 02/29/96 4,977,602
5,000,000 5.875% 05/31/96 4,997,855
5,000,000 7.875% 07/31/96 5,075,159
10,000,000 6.500% 09/30/96 10,075,950
40,083,109
Total U.S. Treasury Obligations
(Cost $172,148,091) 172,148,091
REPURCHASE AGREEMENTS -- FIXED RATE -- 81.0%
123,202,000 Agreement with CS First Boston Corporation,
Interest is payable monthly. The agreement
is terminable by the Portfolio daily. The
final maturity date of the agreement is
07/01/96, collateralized by $186,523,308
U.S. Treasury Obligations, with various ma-
turities (value $125,666,042)## 123,202,000
25,000,000 Agreement with Deutsche Bank Financial Inc.,
5.875% dated 10/31/95 to be repurchased at
$25,004,080 on 11/01/95, collateralized by
$22,497,000 U.S. Treasury Obligations, with
various maturities and coupon rates (value
$25,500,857) 25,000,000
<PAGE>
$ 25,000,000 Agreement with Goldman Sachs & Company,
5.880% dated 10/31/95 to be repurchased at
$25,004,083 on 11/01/95, collateralized by
$19,514,000 U.S. Treasury Bonds, 8.875% due
02/15/19 (value $25,500,247) $ 25,000,000
25,000,000 Agreement with HSBC Securities,
5.880% dated 10/31/95 to be repurchased at
$25,004,083 on 11/01/95, collateralized by
$24,720,000 U.S. Treasury Obligations, with
various maturities and coupon rates (value
$25,500,310) 25,000,000
10,000,000 Agreement with Lehman Government Securities,
Inc.,
5.700% dated 10/17/95 to be repurchased at
$10,031,667 on 11/06/95, collateralized by
$8,815,000 U.S. Treasury Bonds, 7.500% due
11/15/16 (value $10,196,655) 10,000,000
25,000,000 Agreement with Merrill Lynch & Company, Inc.,
5.880% dated 10/31/95 to be repurchased at
$25,004,083 on 11/01/95, collateralized by
$24,820,000 U.S. Treasury Note, 6.250% due
08/31/00 (value $25,503,769) 25,000,000
25,000,000 Agreement with Morgan (J.P.) & Company, Inc.,
5.875% dated 10/31/95 to be repurchased at
$25,004,080 on 11/01/95, collateralized by
$90,027,000 U.S. Treasury Obligations, with
various maturities and coupon rates (value
$25,500,121) 25,000,000
25,000,000 Agreement with Smith Barney & Company,
5.880% dated 10/31/95 to be repurchased at
$25,004,083 on 11/01/95, collateralized by
$24,072,000 U.S. Treasury Obligations, with
various maturities and coupon rates (value
$25,500,357) 25,000,000
125,000,000 Agreement with UBS Securities, Inc.,
5.880% dated 10/31/95 to be repurchased at
$125,020,417 on 11/01/95, collateralized by
$125,174,000 U.S. Treasury Obligations, with
various maturities and coupon rates (value
$127,500,447) 125,000,000
Total Repurchase Agreements -- Fixed Rate
(Cost $408,202,000) 408,202,000
REPURCHASE AGREEMENTS -- TERM -- 6.9%
10,000,000 Agreement with Lehman Government Securities,
Inc.,
5.855%+, terminable by the Portfolio within
seven calendar days, with a final maturity
date of 11/02/95. Interest receivable as of
10/31/95 was $41,297, collateralized by
$8,815,000 U.S. Treasury Bond, 7.500% due
11/15/16
(value $10,196,655) 10,000,000
25,000,000 Agreement with Morgan Stanley Group Inc.,**
5.700%, dated 10/20/95, to be repurchased on
11/17/95. Interest receivable as of 10/31/95
was $47,500, collateralized by $26,360,000
U.S. Treasury Note, 4.750% due 10/31/98
(value $25,626,669) 25,000,000
Total Repurchase Agreements -- Term
(Cost $35,000,000) 35,000,000
<PAGE>
Shares
MONEY MARKET FUNDS -- 2.6%
3,058,000 AIM Treasury Fund $ 3,058,000
5,662,000 Dreyfus Treasury Cash Management Fund 5,662,000
4,233,000 Fidelity Institutional Cash Portfolio Fund 4,233,000
Total Money Market Funds
(Cost $12,953,000) 12,953,000
TOTAL INVESTMENTS
(Cost $628,303,091*) 124.7 % 628,303,091
OTHER ASSETS AND LIABILITIES
(NET) (24.7)%
Due from investment adviser 130,064
Other assets 801,252
Payable for reverse repurchase agreement (123,202,000)
Dividends payable (2,030,977)
Administration fee payable (19,393)
Shareholder servicing and distribution fees
payable (12,035)
Custodian fees payable (10,529)
Accrued Trustees' fees and expenses (3,185)
Accrued expenses and other payables (52,365)
TOTAL OTHER ASSETS AND LIABILITIES (NET) (124,399,168)
NET ASSETS 100.0 % $ 503,903,923
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
Capital Shares (formerly Class A Shares):
($446,256,877 / 446,268,767 shares outstand-
ing) $ 1.00
Liquidity Shares (formerly Class B Shares):
($1,720,490 / 1,720,536 shares outstanding) $ 1.00
Adviser Shares (formerly Class C Shares):
($55,926,556 / 55,928,047 shares outstand-
ing) $ 1.00
* Aggregate cost for Federal tax purposes.
** Restricted Security.
+ Rate resets daily. The interest rate shown reflects the rate currently in
effect.
# Denotes securities subject to repurchase under reverse repurchase agreement
as of October 31, 1995.
## Securities segregated as collateral for reverse repurchase agreement.
AT OCTOBER 31, 1995 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments
sold $ (12,579)
Paid-in capital 503,916,502
TOTAL NET ASSETS $ 503,903,923
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY VALUE
AMOUNT NATIONS GOVERNMENT RESERVES DATE (NOTE 1)
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGA-
TIONS -- 83.9%
FEDERAL FARM CREDIT BANK (FFCB)
-- 3.2%
$5,000,000 Discount Note 11/28/95 $ 4,978,663
FEDERAL FARM CREDIT BANK (FFCB)
NOTES -- 8.4%
5,000,000 5.950%+ 11/01/95++ 5,000,000
6,000,000 6.1375%+ 11/28/95 6,000,825
2,000,000 5.750% 08/01/96 1,998,911
12,999,736
FEDERAL HOME LOAN BANK (FHLB)
NOTES -- 11.7%
5,000,000 5.760%+ 11/01/95++ 4,998,629
3,000,000 5.705% 06/10/96 2,994,658
5,000,000 6.000% 08/07/96 5,000,000
5,000,000 5.870% 10/25/96 5,000,000
17,993,287
FEDERAL HOME LOAN MORTGAGE COR-
PORATION (FHLMC) -- 11.5%
5,000,000 Discount note 01/05/96 4,951,250
5,000,000 Discount note 01/16/96 4,941,311
3,000,000 Discount note 01/29/96 2,958,689
5,000,000 Discount note 02/05/96 4,926,267
17,777,517
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION (FNMA) -- 27.7%
3,390,000 Discount note 11/01/95 3,390,000
3,000,000 Discount note 12/12/95 2,980,935
3,000,000 Discount note 12/27/95 2,974,100
4,000,000 Discount note 01/17/96 3,952,773
3,000,000 Discount note 01/25/96 2,960,546
5,000,000 Discount note 02/02/96 4,928,183
3,000,000 Discount note 02/20/96 2,948,570
3,000,000 Discount note 03/01/96 2,944,542
5,000,000 Discount note 03/11/96 4,899,930
5,000,000 Discount note 03/13/96 4,898,403
3,000,000 Discount note 03/22/96 2,934,325
3,000,000 Discount note 08/26/96 2,862,958
<PAGE>
42,675,265
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION (FNMA) NOTE -- 3.3%
$ 5,000,000 5.8125%+ 12/27/95++ $ 5,000,000
STUDENT LOAN MARKETING ASSOCIA-
TION (SLMA) NOTES -- 18.1%
20,000,000 5.620%+ 11/07/95++ 19,941,317
8,000,000 5.640%+ 11/07/95++ 8,000,000
27,941,317
Total U.S. Government Agency Obligations
(Cost $129,365,785) 129,365,785
REPURCHASE AGREEMENTS -- 14.0%
11,662,000 Agreement with CS First Boston Corporation,
5.900% dated 10/31/95 to be repurchased at
$11,663,911 on 11/01/95, collateralized by
$7,731,000 U.S. Treasury Bonds, 11.250% due
2/15/15 (value $11,896,982) 11,662,000
10,000,000 Agreement with Lehman Government Securities,
Inc.,
5.880% dated 10/31/95 to be repurchased at
$10,001,633 on 11/01/95, collateralized by
$8,815,000 U.S. Treasury Bonds, 7.500% due
11/15/16 (value $10,196,655) 10,000,000
Total Repurchase Agreements
(Cost $21,662,000) 21,662,000
Shares
MONEY MARKET FUND -- 2.2% (Cost $3,386,000)
3,386,000 Dreyfus Treasury Prime Cash Management Fund 3,386,000
TOTAL INVESTMENTS
(Cost $154,413,785*) 100.1 % 154,413,785
OTHER ASSETS AND LIABILITIES
(NET) (0.1)%
Due from investment adviser 32,495
Other assets 483,845
Dividends payable (584,556)
Shareholder servicing and distribution fees
payable (21,428)
Administration fee payable (5,758)
Custodian fees payable (1,833)
Accrued Trustees' fees and expenses (923)
Accrued expenses and other payables (24,962)
TOTAL OTHER ASSETS AND LIABILITIES (NET) (123,120)
NET ASSETS 100.0 % $154,290,665
<PAGE>
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
Capital Shares (formerly Class A Shares):
($40,558,812 / 40,559,830 shares outstand-
ing) $ 1.00
Liquidity Shares (formerly Class B Shares):
($2,121 / 2,121 shares outstanding) $ 1.00
Adviser Shares (formerly Class C Shares):
($113,729,732 / 113,732,586 shares outstand-
ing) $ 1.00
* Aggregate cost for Federal tax purposes.
+ Floating rate note. The interest rate shown reflects the rate currently in
effect.
++ Reset date.
AT OCTOBER 31, 1995 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments
sold $ (3,083)
Paid-in capital 154,293,748
TOTAL NET ASSETS $154,290,665
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT NATIONS MUNICIPAL RESERVES (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES --
100.1%
ALABAMA -- 4.2%
Homewood, Alabama, Education
Building Authority, Educational
Facilities, (Samford Univer-
sity), Series C, (AmSouth Bank
(Birmingham) LOC),
$1,300,000 4.100% due 12/01/13++ $1,300,000
McIntosh, Alabama, Industrial
Development Board, Pollution
Control Revenue, (Ciba-Geigy
Corporation Project), Series A,
(Swiss Bank LOC),
1,000,000 3.900% due 12/01/03++ 1,000,000
Opelika, Alabama, Industrial De-
velopment Board, Industrial De-
velopment Revenue, (Flowers
Baking Company Project), (Trust
Company Bank LOC),
2,000,000 3.950% due 12/01/99++ 2,000,000
4,300,000
ALASKA -- 1.8%
Valdez, Alaska, Marine Terminal
Revenue, (Arco Transportation
Project), Series B,
1,900,000 4.000% due 05/01/31++ 1,900,000
ARKANSAS -- 0.9%
Fayetteville, Arkansas, Public
Facilities Board Revenue,
(Charter Vista Hospital
Project), (Mitsubishi Bank Ltd.
LOC),
934,000 3.950% due 03/01/07++ 934,000
CALIFORNIA -- 4.6%
Contra Costa (County of), Cali-
fornia, TRAN,
1,000,000 4.500% due 07/03/96 1,005,486
San Bernardino (County of), Cal-
ifornia, TRAN, GO, (Toronto
Dominion Bank and Bank of Nova
Scotia LOC),
2,500,000 4.500% due 07/05/96 2,508,923
San Diego, California, Indus-
trial Development Revenue,
(Kaiser Aerospace and Electri-
cal Project), Series A, AMT,
(ABN-Amro Bank LOC),
1,200,000 4.050% due 10/01/07++ 1,200,000
4,714,409
COLORADO -- 3.6%
Clear Creek (County of), Colo-
rado, Financing Pool, Anticipa-
tion Warrants, (National West-
minster Bank PLC LOC),
180,000 3.950% due 06/01/98++ 180,000
Colorado (State of), Health Fa-
cilities Authority Revenue,
(Goodwill Industries), (Banc
One LOC),
2,000,000 4.000% due 12/01/04++ 2,000,000
<PAGE>
Colorado (State of), Student Ob-
ligation Board Authority Reve-
nue, Series A, AMT, (Student
Loan Marketing Association
LOC),
$1,545,000 4.000% due 09/01/24++ $1,545,000
3,725,000
DISTRICT OF COLUMBIA -- 1.4%
District of Columbia, Hospital
Revenue, (Columbia Women's Hos-
pital), Series A, (Mitsubishi
Bank Ltd. LOC),
1,500,000 4.200% due 07/01/20++ 1,500,000
FLORIDA -- 8.0%
Alachua (County of), Florida,
Health Facilities Revenue,
(North Florida Retirement Vil-
lage Project), (Kredietbank
N.V. LOC),
1,800,000 3.850% due 01/01/21++ 1,800,000
Dade (County of), Florida, In-
dustrial Development Revenue,
(Dade Solid Waste -- Montenay
Project), AMT, (Banque Paribas
LOC),
960,000 4.150% due 12/01/10++ 960,000
Florida (State of), Housing Fi-
nance Agency, Multi-family
Housing Revenue, (Blairstone
Project), (Citibank (New York)
LOC),
1,000,000 4.000% due 12/01/07++ 1,000,000
Gulf Breeze, Florida, Local Gov-
ernment Loan Program, Series
B, (FGIC Insured),
(SBPA), (Credit Locale de
France),
1,555,000 4.000% due 12/01/15++ 1,555,000
Hillsborough (County of), Flor-
ida, Industrial Development
Revenue, (Seaboard Tampa
Project), AMT, (Barclays Bank
PLC LOC),
2,000,000 3.950% due 12/01/16++ 2,000,000
Orange (County of), Florida,
Health Facilities Authority
Revenue, (Mayflower Retirement
Community Project), (Rabobank
Nederland LOC),
1,000,000 4.000% due 03/01/18++ 1,000,000
8,315,000
GEORGIA -- 6.8%
De Kalb (County of), Georgia,
Housing Authority, Multi-family
Housing Revenue: (Stone Mill
Run Apartment Project), Series
A, AMT,
(First Tennessee Bank LOC),
4,000,000 4.000% due 08/01/27++ 4,000,000
(Terrace Club Project), Series
A , (AmSouth Bank LOC),
1,000,000 4.200% due 11/01/15++ 1,000,000
<PAGE>
Smyrna, Georgia, Multi-family
Housing Authority Revenue,
(Hills of Post Village
Project), (FNMA Collateral
Agreement),
$2,000,000 3.850% due 06/01/25++ $2,000,000
7,000,000
ILLINOIS -- 9.0%
Burbank, Illinois, Industrial
Development Revenue, (Service
Merchandise, Inc. Project),
(Canadian Imperial Bank of
Commerce LOC),
400,000 3.800% due 09/15/24+++ 400,000
Chicago, Illinois, O'Hare Inter-
national Airport, Industrial
Revenue, Airport and Marina
Improvements, (American Air-
lines Project), (Westdeutsche
Landesbank Girozentrate LOC),
400,000 4.000% due 12/01/17+ 400,000
Illinois (State of), Development
Financial Authority, Industrial
Development Revenue, (Randolph
Pickle Corporation Project),
(American National Bank and
Trust (Chicago) LOC),
900,000 4.200% due 06/01/12++ 900,000
Illinois (State of), Education
Facilities Authority Revenue,
(Northwestern University),
(SBPA), (First National Bank
of Chicago),
1,400,000 3.950% due 12/01/25++ 1,400,000
Illinois (State of), Health Fa-
cilities Authority Revenue:
(Evanston Hospital Corporation
Project), Series B,
2,000,000 4.650% due 02/15/96 2,000,000
(Hospital Sisters Services
Project), Series E, (MBIA In-
sured), (SBPA),
(Morgan Guaranty),
1,700,000 3.850% due 12/01/14++ 1,700,000
Illinois (State of), Health Fa-
cilities Authority Revenue,
Health, Hospital & Nursing
Home Improvements, (Streeter-
ville Corporation Project), Se-
ries B, (First National Bank
(Chicago) LOC),
1,000,000 3.950% due 08/15/23++ 1,000,000
Lombard Village, Illinois, In-
dustrial Project Revenue, B&H
Partnership,
(Comerica Bank LOC),
1,500,000 4.450% due 10/01/13++ 1,500,000
9,300,000
<PAGE>
INDIANA -- 7.2%
Greenwood, Indiana, Industrial
Economic Development Revenue,
(Health Quest Realty Project),
(Banc One LOC),
$1,355,000 4.000% due 09/01/05++ $1,355,000
Indiana Bond Bank, (Advance
Funding Program), Notes A-3,
(SBPA),
(NBD Bank),
4,000,000 3.995% due 01/10/96++ 4,000,000
Indianapolis, Indiana, Multi-
family Housing Revenue, (Canal
Square Project), (Societe Gen-
erale LOC),
1,300,000 3.850% due 12/01/15++ 1,300,000
Portage, Indiana, Economic De-
velopment Revenue, (Health
Quest Realty Project), Series
94, (Banc One LOC),
820,000 4.000% due 09/01/03++ 820,000
7,475,000
KENTUCKY -- 1.0%
Jefferson County, Kentucky, In-
dustrial Development Board,
Economic Development Revenue,
(Ball Corporation Project),
(PNC Bank of Ohio LOC),
1,000,000 4.150% due 04/01/98++ 1,000,000
LOUISIANA -- 0.2%
Calcasieu Parish, Louisiana, In-
dustrial Development Board,
Pollution Control Revenue,
(Citgo Petroleum Corporation
Project), (Westdeutsche Landes-
bank Girozentrate LOC),
200,000 3.900% due 08/01/04++ 200,000
MAINE -- 1.9%
Maine (State of), TAN,
2,000,000 4.500% due 06/28/96 2,009,488
MARYLAND -- 1.1%
Baltimore (City of), Maryland,
Economic Development Revenue,
(Rock Tennessee Converting Fa-
cility Project), (Trust Company
Bank LOC),
955,000 4.100% due 09/01/97++ 955,000
Montgomery (County of), Mary-
land, Industrial Development
Revenue, (Information Systems
and Networks Corporation
Project), (Pittsburgh National
Bank LOC),
200,000 3.750% due 04/01/14+++ 200,000
1,155,000
<PAGE>
MICHIGAN -- 6.3%
Jackson (County of), Michigan,
Economic Development Corpora-
tion, Economic Development Rev-
enue, (Sealed Power Corporation
Project), (National Bank of
Detroit LOC),
$1,000,000 3.850% due 10/01/19+++ $ 1,000,000
Michigan (State of), Building
Authority, Series 1, (Canadian
Imperial Bank of Commerce
LOC),
4,000,000 3.850% due 11/16/95 4,000,000
Michigan (State of), Municipal
Bond Authority Revenue Notes,
Series B,
1,500,000 4.500% due 07/03/96 1,506,768
6,506,768
MISSOURI -- 2.0%
Missouri (State of), Health and
Educational Facilities Author-
ity, Educational Facilities
Revenue, (Washington Univer-
sity), (SBPA), (Morgan Guar-
anty),
2,100,000 3.900% due 09/01/09++ 2,100,000
NEW JERSEY -- 4.6%
Jersey City, New Jersey, BAN,
GO,
2,000,000 5.250% due 11/17/95 2,000,456
New Jersey (State of), Economic
Development Authority, (Catho-
lic Community Services
Project), (First Fidelity LOC),
1,250,000 3.800% due 06/01/25++ 1,250,000
New Jersey (State of), Economic
Development Authority, First
Mortgage Gross Revenue, (Fran-
ciscan Oaks Project), Series
B, (Bank of Scotland LOC),
1,500,000 3.850% due 12/01/97++ 1,500,000
4,750,456
NEW MEXICO -- 0.6%
New Mexico Educational Assis-
tance Foundation, Student Loan
Revenue, Series B, AMT, (AMBAC
Insured), (Internationale Ned-
erlanden Bank SBPA),
600,000 4.050% due 04/01/05++ 600,000
NORTH CAROLINA -- 1.3%
North Carolina Medical Care Com-
munity, (Duke University Hospi-
tal), Series B,
(SBPA), (First National Bank
of Chicago),
1,300,000 3.900% due 06/01/15++ 1,300,000
OHIO -- 4.3%
Centerville, Ohio, Health Care
Revenue, (Bethany Lutheran Vil-
lage Project), (PNC Bank of
Ohio LOC),
1,000,000 4.000% due 11/01/13++ 1,000,000
<PAGE>
Cuyhoga (County of), Ohio, In-
dustrial Development Revenue
Refunding,
(Pleasant Lake Project), (Soci-
ety National Bank),
$1,000,000 4.000% due 05/01/11++ $ 1,000,000
Greene (County of), Ohio, Indus-
trial Development Revenue,
(AFC Stamping Project), AMT,
(Society National Bank LOC),
1,000,000 4.150% due 09/01/16++ 1,000,000
Trumbull (County of), Ohio, In-
dustrial Development Revenue,
(ATD Corporation Project), AMT,
(Society National Bank),
1,000,000 4.150% due 08/01/10++ 1,000,000
Warren (County of), Ohio, Indus-
trial Development Revenue, (Pi-
oneer Industrial Components
Inc. Project), (Mitsubishi Bank
(Chicago) LOC),
400,000 4.000% due 12/01/05++ 400,000
4,400,000
PENNSYLVANIA -- 2.7%
Chester (County of), Pennsylva-
nia, Industrial Development
Revenue, (Keystone Foods Corpo-
ration Project), (Bank of
Scotland LOC),
400,000 3.850% due 10/15/99+++ 400,000
Montgomery (County of), Pennsyl-
vania, Higher Education and
Health Authority Hospital Reve-
nue, (AMBAC Insured), (SBPA),
(Swiss Bank),
2,400,000 3.850% due 09/01/18++ 2,400,000
2,800,000
SOUTH CAROLINA -- 1.0%
Cherokee (County of), South
Carolina, Industrial Develop-
ment Revenue, (Holmberg Elec-
tric Corporation Project),
(Wachovia Bank & Trust LOC),
1,000,000 3.950% due 11/01/04++ 1,000,000
TENNESSEE -- 2.9%
Chattanooga, Tennessee, Indus-
trial Development Board, (Sea-
board Farms of Chattanooga
Project), (Bank of Nova Scotia
LOC),
2,000,000 3.875% due 06/01/04++ 2,000,000
Jefferson City, Tennessee, In-
dustrial Development Board, (BA
Property Project), AMT, (Ameri-
can National Bank and Trust
(Chicago) LOC),
1,000,000 4.250% due 11/01/24++ 1,000,000
3,000,000
TEXAS -- 15.2%
Austin (County of), Texas, In-
dustrial Development Corpora-
tion, Industrial Development
Revenue, (Justin Industries
Inc. Project), (Citibank (New
York) LOC),
1,900,000 3.950% due 12/01/14++ 1,900,000
<PAGE>
Austin, Texas, Utility System
Revenue Refunding Bonds,
Pre-refunded,
$ 875,000 10.000% due 11/15/95 $ 894,302
El Paso, Texas, Housing Finance
Corporation, (Viva Apartments
Project), AMT, (General Elec-
tric Capital Corporation LOC),
3,000,000 4.250% due 09/01/23# 3,000,000
Galveston, Texas, Industrial De-
velopment Corporation, (Mitch-
ell Interests Project), Series
A, AMT, (National Westminster
Bank PLC LOC),
1,100,000 4.050% due 09/01/13++ 1,100,000
Houston, Texas, Certificates of
Obligation, Series B,
1,900,000 3.900% due 04/01/14++ 1,900,000
San Antonio, Texas, Independent
School District, School Im-
provement Bonds, GO, Pre-
refunded,
875,000 8.125% due 11/01/95 875,000
Texas (State of), TRAN, Series
A,
5,000,000 4.750% due 08/30/96 5,027,886
Trinity River, Texas, Industrial
Development Authority, Indus-
trial Development Revenue Bond,
Series 1994, (Toys "R" Us
Project), (Bankers Trust LOC),
1,000,000 3.875% due 11/01/14++ 1,000,000
15,697,188
UTAH -- 2.3%
Salt Lake City, Utah, Industrial
Development Revenue, (SPS Tech-
nologies Inc. Project), AMT,
(National Australia Bank LOC),
1,000,000 4.150% due 12/01/12++ 1,000,000
Utah (County of), Utah, Indus-
trial Development Revenue,
(McWare Inc. Project), (AmSouth
Bank (Birmingham) LOC),
1,380,000 4.150% due 02/01/98++ 1,380,000
2,380,000
VERMONT -- 2.0%
Vermont (State of), Education
and Health Buildings, Finance
Agency Revenue, (VHA New En-
gland Project), Series F,
(AMBAC Insured),
(SBPA), (First National Bank
of Chicago),
2,100,000 3.850% due 12/01/25++ 2,100,000
<PAGE>
VIRGINIA -- 1.0%
Botetourt (County of), Virginia,
Industrial Development Author-
ity, Industrial Development
Revenue, (Emkay Holdings LLC
Project), AMT, (State Street
Bank & Trust Company LOC),
$1,000,000 3.950% due 10/01/05++ $ 1,000,000
WASHINGTON -- 1.0%
Washington (State of), Public
Power Supply Systems, (Nuclear
Project No. 3), Revenue Re-
funding,
1,000,000 6.700% due 07/01/96 1,017,444
WEST VIRGINIA -- 1.2%
Ohio (County of), West Virginia,
Industrial Development Revenue,
(Ohio Valley/Clarksburg Drug
Company Project), (PNC Bank
LOC),
1,200,000 4.100% due 12/01/01+++ 1,200,000
Total Municipal Bonds and
Notes (Cost $103,379,753) 103,379,753
Shares
MONEY MARKET FUNDS -- 0.4%
400,000 AIM Tax-Exempt Fund 400,000
Fidelity Institutional Tax-
30,000 Exempt Cash Management Fund 30,000
Total Money Market Funds
(Cost $430,000) 430,000
TOTAL INVESTMENTS (Cost
$103,809,753*) 100.5 % 103,809,753
OTHER ASSETS AND LIABILITIES
(NET) (0.5)%
Due from investment adviser 66,483
Other assets 860,895
Due to custodian (1,152,465)
Dividends payable (301,552)
Shareholder servicing and dis-
tribution fees payable (13,977)
Administration fee payable (4,661)
Custodian fees payable (1,882)
Accrued Trustees' fees and expenses (827)
Accrued expenses and other payables (14,610)
TOTAL OTHER ASSETS AND LIA-
BILITIES (NET) (562,596)
NET ASSETS 100.0 % $103,247,157
<PAGE>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
Capital Shares (formerly Class A
Shares):
($34,981,801 / 34,982,197
shares outstanding) $ 1.00
Liquidity Shares (formerly Class
B Shares):
($2,265,054 / 2,265,079 shares
outstanding) $ 1.00
Adviser Shares (formerly Class C
Shares):
($66,000,302 / 66,001,033
shares outstanding) $ 1.00
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more
than one business day's notice. The interest rate
shown reflects the rate currently in effect.
++ Variable rate demand notes are payable upon not more
than seven calendar days' notice. The interest rate
shown reflects the rate currently in effect.
+++ Variable rate demand notes are payable upon not more
than thirty calendar days' notice. The interest rate
shown reflects the rate currently in effect.
# "Put" bonds and notes have demand features which may
mature within one year. The interest rate shown re-
flects the rate currently in effect.
Abbreviations:
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
BAN -- Bond Anticipation Notes
FGIC -- Federal Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
GO -- General Obligation Bonds
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
SBPA -- Standby Bond Purchase Agreement
TAN -- Tax Anticipation Notes
TRAN -- Tax and Revenue Anticipation Notes
AT OCTOBER 31, 1995 NET ASSETS
CONSIST OF:
Accumulated net realized loss on
investments sold $ (1,152)
Paid-in capital 103,248,309
TOTAL NET ASSETS $103,247,157
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF OPERATIONS NATIONS INSTITUTIONAL RESERVES
For the Six Months Ended October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 6,655,240 $ 10,162,338 $ 3,105,568 $ 2,034,626
Dividends 264,527 459,060 86,495 50,142
Total Investment Income 6,919,767 10,621,398 3,192,063 2,084,768
Expenses:
Investment advisory fee 341,139 535,424 162,308 158,702
Administration fee 113,713 178,475 54,103 52,901
Transfer agent fees 12,257 37,887 7,115 11,397
Custodian fees 21,584 54,601 9,453 10,356
Trustees' fees and expenses 5,366 8,844 2,079 2,051
Registration and filing fees 80,402 76,749 26,598 42,684
Legal and audit fees 26,701 41,159 5,761 16,949
Amortization of organization
costs 4,248 8,341 -- 522
Other 2,961 9,325 775 145
Subtotal 608,371 950,805 268,192 295,707
Shareholder servicing and dis-
tribution fee:
Liquidity Shares 6,587 1,349 2 2,489
Adviser Shares 61,809 75,114 129,378 86,974
Fees waived and/or expenses
reimbursed by investment ad-
viser and administrator (380,168) (593,181) (158,984) (189,497)
Total Expenses 296,599 434,087 238,588 195,673
Net Investment Income 6,623,168 10,187,311 2,953,475 1,889,095
Net Realized Loss on Invest-
ments -- -- (2,675) --
Net Increase in Net Assets
Resulting From Operations $ 6,623,168 $ 10,187,311 $ 2,950,800 $ 1,889,095
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES
For the Six Months Ended October 31, 1995 (unaudited)
<TABLE>
<S> <C> <C>
NATIONS TREASURY RESERVES
Cash flows from operating and
investing activities:
Investment income received $ 7,724,783
Payment of operating expenses (442,312)
Net purchases of short-term
investments (316,492,760)
Cash used by operating and in-
vesting activities $(309,210,289)
Cash flows from financing activ-
ities:
Proceeds from shares sold 869,254,682
Payments on shares redeemed (673,530,060)
Cash provided from reverse re-
purchase agreements 123,202,000
Distributions paid* (9,716,230)
Cash provided by financing ac-
tivities 309,210,392
Increase in cash 103
Cash at beginning of period 18
Cash at end of Period $ 121
RECONCILIATION OF NET INCREASE
IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING
ACTIVITIES:
Net increase in net assets re-
sulting from operations $ 10,187,311
Increase in investments $(319,012,273)
Increase in interest and divi-
dends receivable (402,928)
Decrease in other assets 3,429
Increase in accrued expenses 14,172
Cash used by operating activi-
ties $(309,210,289)
* Non cash activities include reinvestment of dividends of $49,674.
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
Six Months Ended October 31, 1995 (unaudited)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
<S> <C> <C> <C> <C>
Net investment income $ 6,623,168 $ 10,187,311 $ 2,953,475 $ 1,889,095
Net realized loss on invest-
ments sold during the pe-
riod -- -- (2,675) --
Net increase in net assets
resulting from operations 6,623,168 10,187,311 2,950,800 1,889,095
Distributions to sharehold-
ers from net investment
income:
Capital Shares (4,956,085) (8,480,416) (117,132) (614,282)
Liquidity Shares (251,162) (50,266) (58) (60,014)
Adviser Shares (1,415,921) (1,656,629) (2,836,285) (1,214,799)
Net increase/(decrease) in
net assets from Fund share
transactions:
Capital Shares 460,053,368 194,564,585 40,557,819 2,628,732
Liquidity Shares 11,628,756 1,046,333 58 (325,989)
Adviser Shares 12,034,124 163,378 14,485,040 1,877,598
Net increase in net assets 483,716,248 195,774,296 55,040,242 4,180,341
Net Assets:
Beginning of period 181,748,071 308,129,627 99,250,423 99,066,816
End of period $ 665,464,319 $ 503,903,923 $ 154,290,665 $ 103,247,157
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
Year Ended April 30, 1995
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
<S> <C> <C> <C> <C>
Net investment income $ 8,016,550 $ 15,603,639 $ 5,980,505 $ 2,272,365
Net realized gain/(loss) on
investments sold during
the year 465 -- (408) --
Net increase in net assets
resulting from operations 8,017,015 15,603,639 5,980,097 2,272,365
Distributions to sharehold-
ers from net investment
income:
Capital Shares (6,283,716) (14,047,209) (117,060) (1,076,833)
Liquidity Shares (527,606) (120,316) (2,762,795) (92,633)
Adviser Shares (1,205,320) (1,436,114) (3,100,650) (1,102,899)
Net increase/(decrease) in
net assets from Fund share
transactions (Note 4):
Capital Shares 24,211,274 (86,813,062) (10,816,825) (3,345,368)
Liquidity Shares (69,785,073) (13,553,102) (259,835,082) (11,213,995)
Adviser Shares 47,683,400 55,764,669 99,247,546 64,123,435
Net increase/(decrease) in
net assets 2,109,974 (44,601,495) (171,404,769) 49,564,072
Net Assets:
Beginning of year 179,638,097 352,731,122 270,655,192 49,502,744
End of year $ 181,748,071 $ 308,129,627 $ 99,250,423 $ 99,066,816
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Capital Shares:
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.0298 0.0480 0.0283 0.0315 0.0492 0.0392
Dividends from net invest-
ment income (0.0298) (0.0480) (0.0283) (0.0315) (0.0492) (0.0392)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 3.01% 4.91% 2.87% 3.19% 5.03% 7.35%+
Ratios to average net as-
sets/supplemental data:
Net assets, end of pe-
riod (000's) $ 594,116 $ 134,064 $ 109,852 $ 55,739 $ 100,943 $ 19,387
Ratio of operating ex-
penses to average net
assets 0.20%+ 0.29% 0.45% 0.45% 0.45% 0.45%+
Ratio of net investment
income to average net
assets 5.87%+ 4.96% 2.83% 3.15% 4.61% 7.04%+
Ratio of operating ex-
penses to average net
assets without waivers 0.53%+ 0.52% 0.56% 0.59% 0.74% 0.79%+
Ratio of net investment
income to average net
assets without waivers 5.54%+ 4.73% 2.72% 3.01% 4.32% 6.70%+
Net investment income
per share without
waivers $ 0.0281 $ 0.0458 $ 0.0272 $ 0.0298 $ 0.0455 $ 0.0373
* The Nations Cash Reserves Capital Shares commenced operations on Octo-
ber 10, 1990.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Liquidity Shares:
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.0290 0.0471 0.0273 0.0305 0.0482 0.0197
Dividends from net invest-
ment income (0.0290) (0.0471) (0.0273) (0.0305) (0.0482) (0.0197)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 2.95% 4.81% 2.77% 3.09% 4.92% 6.44%+
Ratios to average net as-
sets/supplemental data:
Net assets, end of pe-
riod (000's) $ 11,631 $ 2 $ 69,786 $ 19,411 $ 4,776 $ 10,361
Ratio of operating ex-
penses to average net
assets 0.35%+ 0.38% 0.55% 0.55% 0.55% 0.55%+
Ratio of net investment
income to average net
assets 5.72%+ 4.87% 2.74% 2.96% 4.94% 6.41%+
Ratio of operating ex-
penses to average net
assets without waivers 0.68%+ 0.61% 0.65% 0.68% 0.85% 0.87%+
Ratio of net investment
income to average net
assets without waivers 5.39%+ 4.64% 2.64% 2.82% 4.64% 6.09%+
Net investment income
per share without
waivers $ 0.0273 $ 0.0448 $ 0.0262 $ 0.0287 $ 0.0447 $ 0.0186
* The Nations Cash Reserves Liquidity Shares commenced operations on
January 9, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
SIX MONTHS
ENDED PERIOD
10/31/95 ENDED
(UNAUDITED) 04/30/95*
<S> <C> <C>
Adviser Shares:
Net asset value, beginning of period $ 1.00 $ 1.00
Net investment income 0.0285 0.0316
Dividends from net investment income (0.0285) (0.0316)
Net asset value, end of period $ 1.00 $ 1.00
Total Return++ 2.88% 3.20%
Ratios to average net assets/supplemen-
tal data:
Net assets, end of period (000's) $ 59,717 $ 47,682
Ratio of operating expenses to aver-
age net assets 0.45%+ 0.54%+
Ratio of net investment income to av-
erage net assets 5.62%+ 4.71%+
Ratio of operating expenses to aver-
age net assets without waivers 0.78%+ 0.77%+
Ratio of net investment income to av-
erage net assets without waivers 5.29%+ 4.48%+
Net investment income per share with-
out waivers $ 0.0268 $ 0.0300
* The Nations Cash Reserves Adviser Shares commenced operations on Sep-
tember 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Capital Shares:
Net asset value, be-
ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from invest-
ment operations:
Net investment income 0.0290 0.0480 0.0298 0.0323 0.0481 0.0176
Net realized gain on
investments -- -- -- 0.0001 0.0003 --
Total from investment
operations 0.0290 0.0480 0.0298 0.0324 0.0484 0.0176
Less Distributions:
Dividends from net
investment income (0.0290) (0.0480) (0.0298) (0.0323) (0.0481) (0.0176)
Distributions from
net realized gains -- -- -- (0.0001) (0.0003) --
Total distribu-
tions (0.0290) (0.0480) (0.0298) (0.0324) (0.0484) (0.0176)
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 2.94% 4.91% 3.02% 3.29% 4.92% 5.89%+
Ratios to average net
assets/supplemental data:
Net assets, end of
period (000's) $ 446,257 $ 251,694 $ 338,504 $ 418,644 $ 19,587 $ 4,519
Ratio of operating
expenses to aver-
age net assets 0.20%+ 0.20% 0.20% 0.20% 0.26% 0.45%+
Ratio of net invest-
ment income to av-
erage net assets 5.74%+ 4.79% 2.99% 2.99% 4.39% 5.85%+
Ratio of operating
expenses to aver-
age net assets
without waivers 0.53%+ 0.50% 0.52% 0.72% 1.06% 0.94%+
Ratio of net invest-
ment income to av-
erage net assets
without waivers 5.40%+ 4.50% 2.67% 2.48% 3.59% 5.36%+
Net investment in-
come per share
without waivers $ 0.0273 $ 0.0451 $ 0.0267 $ 0.0251 $ 0.0368 $ 0.0161
* The Nations Treasury Reserves Capital Shares commenced operations on
January 11, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Liquidity Shares:
Net asset value, be-
ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from invest-
ment operations:
Net investment in-
come 0.0282 0.0462 0.0263 0.0288 0.0454 0.0173
Net realized gain on
investments -- -- -- 0.0001 0.0003 --
Total from invest-
ment operations 0.0282 0.0462 0.0263 0.0289 0.0457 0.0173
Less Distributions:
Dividends from net
investment income (0.0282) (0.0462) (0.0263) (0.0288) (0.0454) (0.0173)
Distributions from
net realized gains -- -- -- (0.0001) (0.0003) --
Total distribu-
tions (0.0282) (0.0462) (0.0263) (0.0289) (0.0457) (0.0173)
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 2.86% 4.71% 2.67% 2.93% 4.64% 5.79%+
Ratios to average net
assets/supplemental data:
Net assets, end of
period (000's) $ 1,720 $ 674 $ 14,227 $ 3,369 $ 2,807 $ 2,891
Ratio of operating
expenses to aver-
age net assets 0.35%+ 0.49% 0.55% 0.55% 0.52% 0.55%+
Ratio of net invest-
ment income to av-
erage net assets 5.59%+ 4.50% 2.67% 2.89% 4.62% 5.75%+
Ratio of operating
expenses to aver-
age net assets
without waivers 0.68%+ 0.79% 0.87% 1.07% 1.32% 1.04%+
Ratio of net invest-
ment income to av-
erage net assets
without waivers 5.25%+ 4.21% 2.35% 2.37% 3.82% 5.26%+
Net investment in-
come per share
without waivers $ 0.0265 $ 0.0431 $ 0.0232 $ 0.0213 $ 0.0349 $ 0.0160
* The Nations Treasury Reserves Liquidity Shares commenced operations on
January 11, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
SIX MONTHS
ENDED PERIOD
10/31/95 ENDED
(UNAUDITED) 04/30/95*
<S> <C> <C>
Adviser Shares:
Net asset value, beginning of period $ 1.00 $ 1.00
Net investment income 0.0277 0.0308
Dividends from net investment income (0.0277) (0.0308)
Net asset value, end of period $ 1.00 $ 1.00
Total Return++ 2.81% 3.11%
Ratios to average net assets/supple-
mental data:
Net assets, end of period (000's) $ 55,927 $ 55,762
Ratio of operating expenses to av-
erage net assets 0.45%+ 0.45%+
Ratio of net investment income to
average net assets 5.49%+ 4.54%+
Ratio of operating expenses to av-
erage net assets without waivers 0.78%+ 0.75%+
Ratio of net investment income to
average net assets without waiv-
ers 5.15%+ 4.25%+
Net investment income per share
without waivers $ 0.0260 $ 0.0288
* The Nations Treasury Reserves Adviser Shares commenced operations on
September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Capital Shares:
Net asset value, be-
ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from invest-
ment operations:
Net investment in-
come 0.0291 0.0463 0.0278 0.0312 0.0343 0.0168
Net realized gain on
investments -- -- -- -- 0.0023 --
Total from invest-
ment operations 0.0291 0.0463 0.0278 0.0312 0.0366 0.0168
Less Distributions:
Dividends from net
investment income (0.0291) (0.0463) (0.0278) (0.0312) (0.0343) (0.0168)
Distributions from
net realized gains -- -- -- -- (0.0023) --
Total distribu-
tions (0.0291) (0.0463) (0.0278) (0.0312) (0.0366) (0.0168)
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 2.95% 4.72% 2.82% 3.15% 3.71% 5.57%+
Ratios to average net
assets/supplemental data:
Net assets, end of
period (000's) $ 40,559 $ 2 $ 10,819 $ 7,396 $ 1,800 $ 295
Ratio of operating
expenses to aver-
age net assets 0.20%+ 0.32% 0.45% 0.45% 0.45% 0.45%+
Ratio of net invest-
ment income to av-
erage net assets 5.68%+ 4.35% 2.78% 3.07% 4.24% 5.89%+
Ratio of operating
expenses to aver-
age net assets
without waivers 0.49%+ 0.54% 0.51% 0.64% 0.76% 0.80%+
Ratio of net invest-
ment income to av-
erage net assets
without waivers 5.39%+ 4.13% 2.72% 2.88% 3.93% 5.54%+
Net investment in-
come per share
without waivers $ 0.0276 $ 0.0439 $ 0.0272 $ 0.0288 $ 0.0313 $ 0.0158
* The Nations Government Reserves Capital Shares commenced operations on
January 17, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Liquidity Shares:
Net asset value, be-
ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from invest-
ment operations:
Net investment in-
come 0.0279 0.0453 0.0268 0.0302 0.0461 0.0176
Net realized gain on
investments -- -- -- -- 0.0023 --
Total from invest-
ment operations 0.0279 0.0453 0.0268 0.0302 0.0484 0.0176
Less Distributions:
Dividends from net
investment income (0.0279) (0.0453) (0.0268) (0.0302) (0.0461) (0.0176)
Distributions from
net realized gains -- -- -- -- (0.0023) --
Total distribu-
tions (0.0279) (0.0453) (0.0268) (0.0302) (0.0484) (0.0176)
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 2.82% 4.59% 2.71% 3.05% 4.70% 6.04%+
Ratios to average net
assets/supplemental data:
Net assets, end of
period (000's) $ 2 $ 2 $ 259,836 $ 149,252 $ 12,486 $ 5,589
Ratio of operating
expenses to aver-
age net assets 0.35%+ 0.40% 0.55% 0.55% 0.55% 0.55%+
Ratio of net invest-
ment income to av-
erage net assets 5.53%+ 4.27% 2.68% 2.71% 4.46% 5.86%+
Ratio of operating
expenses to aver-
age net assets
without waivers 0.64%+ 0.62% 0.61% 0.74% 0.86% 0.94%+
Ratio of net invest-
ment income to av-
erage net assets
without waivers 5.24%+ 4.05% 2.62% 2.52% 4.18% 5.47%+
Net investment in-
come per share
without waivers $ 0.0264 $ 0.0430 $ 0.0262 $ 0.0274 $ 0.0422 $ 0.0170
* The Nations Government Reserves Liquidity Shares commenced operations
on January 11, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
SIX MONTHS
ENDED PERIOD
10/31/95 ENDED
(UNAUDITED) 04/30/95*
<S> <C> <C>
Adviser Shares:
Net asset value, beginning of
period $ 1.00 $ 1.00
Net investment income 0.0274 0.0299
Dividends from net investment
income (0.0274) (0.0299)
Net asset value, end of period $ 1.00 $ 1.00
Total Return++ 2.76% 3.04%
Ratios to average net as-
sets/supplemental data:
Net assets, end of period
(000's) $ 113,730 $ 99,246
Ratio of operating expenses to
average net assets 0.45%+ 0.57%+
Ratio of net investment income
to average net assets 5.43%+ 4.10%+
Ratio of operating expenses to
average net assets without
waivers 0.74%+ 0.79%+
Ratio of net investment income
to average net assets without
waivers 5.14%+ 3.88%+
Net investment income per
share without waivers $ 0.0259 $ 0.0283
* The Nations Government Reserves Adviser Shares commenced operations on
September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Capital Shares:
Net asset value, be-
ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.0188 0.0313 0.0198 0.0231 0.0356 0.0245
Dividends from net
investment income (0.0188) (0.0313) (0.0198) (0.0231) (0.0356) (0.0245)
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 1.90% 3.19% 2.00% 2.34% 3.62% 4.62%+
Ratios to average net
assets/supplemental data:
Net assets, end of
period (000's) $ 34,982 $ 32,353 $ 35,698 $ 26,145 $ 18,150 $ 5,064
Ratio of operating
expenses to aver-
age net assets 0.20%+ 0.23% 0.45% 0.45% 0.45% 0.45%+
Ratio of net invest-
ment income to av-
erage net assets 3.73%+ 3.36% 1.98% 2.27% 3.38% 4.70%+
Ratio of operating
expenses to aver-
age net assets
without waivers
and/or expenses
reimbursed 0.56%+ 0.59% 0.58% 0.66% 0.89% 0.99%+
Ratio of net invest-
ment income to av-
erage net assets
without waivers
and/or expenses
reimbursed 3.37%+ 2.99% 1.85% 2.05% 2.94% 4.16%+
Net investment in-
come per share
without waivers
and/or expenses
reimbursed $ 0.0170 $ 0.0279 $ 0.0186 $ 0.0203 $ 0.0296 $ 0.0216
* The Nations Municipal Reserves Capital Shares commenced operations on
October 23, 1990.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
10/31/95 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
<S> <C> <C> <C> <C> <C> <C>
Liquidity Shares:
Net asset value, be-
ginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.0181 0.0304 0.0188 0.0221 0.0346 0.0478
Dividends from net
investment income (0.0181) (0.0304) (0.0188) (0.0221) (0.0346) (0.0478)
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return++ 1.81% 3.09% 1.90% 2.24% 3.52% 4.60%+
Ratios to average net
assets/
supplemental data:
Net assets, end of
period (000's) $ 2,265 $ 2,591 $ 13,805 $ 10,766 $ 11,473 $ 8,927
Ratio of operating
expenses to aver-
age net assets 0.35%+ 0.33% 0.55% 0.55% 0.55% 0.55%+
Ratio of net invest-
ment income to av-
erage net assets 3.58%+ 3.26% 1.86% 2.21% 3.36% 5.22%+
Ratio of operating
expenses to aver-
age net assets
without waivers
and/or expenses
reimbursed 0.71%+ 0.69% 0.67% 0.76% 0.99% 0.81%+
Ratio of net invest-
ment income to av-
erage net assets
without waivers
and/or expenses
reimbursed 3.22%+ 2.89% 1.74% 2.00% 2.92% 4.96%+
Net investment in-
come per share
without waivers
and/or expenses
reimbursed $ 0.0163 $ 0.0270 $ 0.0176 $ 0.0192 $ 0.0285 $ 0.0455
* The Nations Municipal Reserves Liquidity Shares commenced operations
on June 1, 1990.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
SIX MONTHS
ENDED PERIOD
10/31/95 ENDED
(UNAUDITED) 04/30/95*
<S> <C> <C>
Adviser Shares:
Net asset value, beginning of
period $ 1.00 $ 1.00
Net investment income 0.0176 0.0199
Dividends from net investment
income (0.0176) (0.0199)
Net asset value, end of period $ 1.00 $ 1.00
Total Return++ 1.78% 2.02%
Ratios to average net as-
sets/supplemental data:
Net assets, end of period
(000's) $ 66,000 $ 64,123
Ratio of operating expenses to
average net assets 0.45%+ 0.48%+
Ratio of net investment income
to average net assets 3.48%+ 3.11%+
Ratio of operating expenses to
average net assets without
waivers and/or expenses reim-
bursed 0.81%+ 0.84%+
Ratio of net investment income
to average net assets without
waivers and/or expenses reim-
bursed 3.12%+ 2.74%+
Net investment income per
share without waivers and/or
expenses reimbursed $ 0.0158 $ 0.0176
* The Nations Municipal Reserves Adviser Shares commenced operations on
September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Notes to Financial Statement (unaudited) Nations Institutional Reserves
1. Significant Accounting Policies.
NATIONS INSTITUTIONAL RESERVES (formerly known as The Capitol Mutual
Funds) (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment
company. As of the date of this report, the Trust currently offers four
portfolios: Nations Cash Reserves (formerly, Cash Reserves), Nations Trea-
sury Reserves (formerly, Treasury Reserves), Nations Government Reserves
(formerly, Government Reserves) and Nations Municipal Reserves (formerly,
Tax Free Reserves) (collectively the "Portfolios"). The Portfolios cur-
rently offer three classes of shares: Capital Shares (formerly, Class A
Shares), Liquidity Shares (formerly, Class B Shares) and Adviser Shares
(formerly, Class C Shares). The Board of Trustees has authorized the issu-
ance of Market Shares (formerly, Class D Shares). As of October 31, 1995,
no Market Shares have been sold. Matters affecting each class will be
voted on exclusively by their shareholders. The following is a summary of
significant accounting policies followed by the Portfolios in the prepara-
tion of their financial statements.
Securities Valuation--The portfolio securities of each Portfolio are valued
on the basis of amortized cost, which approximates market value. Amortized
cost valuation involves valuing an instrument at its cost initially and
thereafter assuming a constant amortization to maturity of any discount or
premium, as long as the effect of fluctuating interest rates on the market
value of the instrument is not significant.
Repurchase Agreements--Each Portfolio may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the
Portfolio takes possession of an underlying debt obligation subject to an
obligation of the seller to repurchase, and the Portfolio to resell, the
obligation at an agreed-upon price and time, thereby determining the yield
during the Portfolio's holding period. This arrangement results in a fixed
rate of return that is not subject to market fluctuations during the
Portfolio'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. In the event of counterparty default, the Portfolio has the right
to use the collateral to offset losses incurred. There is potential loss to
the Portfolio in the event the Portfolio is delayed or prevented from
exercising its rights to dispose of the collateral securities, including the
risk of a possible decline in the value of the underlying securities during
the period while the Portfolio seeks to assert its rights. Unless permitted
by the Securities and Exchange Commission, the Portfolio will not enter into
repurchase agreements with the investment adviser, the distributor or any of
their affiliates. The Portfolio's investment adviser, acting under the
supervision of the Board of Trustees, reviews the value of the collateral
and the creditworthiness of those banks and dealers with which the Portfolio
enters into repurchase agreements to evaluate potential risks.
Reverse Repurchase Agreement--Nations Cash Reserves, Nations Treasury
Reserves and Nations Government Reserves each may enter into reverse
repurchase agreements with institutions that the Portfolio's investment
adviser has determined are creditworthy. Under a reverse repurchase
agreement, a Portfolio sells securities and agrees to repurchase them at a
mutually agreed upon date and price. At the time a Portfolio enters into a
reverse repurchase agreement, it establishes a segregated account with its
custodian bank in which it will maintain cash, U.S. Government securities or
other liquid high grade debt obligations equal in value to its obligations
arising under the reverse repurchase agreement. Reverse repurchase
agreements involve the risk that the market value of the securities
purchased with the proceeds from the sale of securities received by the
Portfolio may decline below the price of the securities the Portfolio is
obligated to repurchase. Securities subject to repurchase under reverse
repurchase agreements are designated in the Statement of Net Assets.
<PAGE>
At October 31, 1995, Nations Treasury Reserves had reverse repurchase
agreements outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount $ 123,202,000
Maturity Date 07/01/96
Market Value of Assets Sold
Under Agreements $123,037,887
</TABLE>
The average daily balance of reverse repurchase agreements outstanding
during the six months ended October 31, 1995 was $51,421,924. Nations Cash
Reserves and Nations Government Reserves did not enter into any reverse
repurchase agreements during the six months ended October 31, 1995.
The proceeds received by Nations Treasury Reserves under the reverse
repurchase agreements were reinvested in a tri-party repurchase agreement.
Net fees earned during the year, representing the difference between
interest rates on the reverse repurchase and repurchase agreements, amounted
to $34,167 and have been included in interest income in the Statement of
Operations.
Securities Transactions and Investment Income--Securities transactions are
accounted for on a trade date basis. Realized gains and losses are computed
on the specific identification of the securities sold. Interest income,
adjusted for amortization of discounts and premiums on investments to
maturity, is earned from settlement date and is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date. Each Portfolio's
investment income and realized gains and losses are allocated among the
classes based upon the relative net assets of each class.
Dividends and Distributions to Shareholders--It is the policy of the
Portfolios to declare dividends daily from net investment income and to pay
such dividends monthly. The Portfolios will distribute net realized
short-term capital gains, unless offset by any available capital loss
carryforward, annually after the fiscal year in which earned or more
frequently to maintain a net asset value of $1.00 per share. Additional
distributions of net investment income and capital gains may be made at the
discretion of the Board of Trustees in order to avoid application of the 4%
non-deductible Federal excise tax. Income distributions and capital gain
distributions on a Portfolio level are determined in accordance with income
tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to timing differences and
differing characterization of distributions made by the Portfolio as a
whole.
Federal Income Taxes--Each Portfolio intends to qualify as a regulated
investment company by complying with the requirements of the Internal
Revenue Code of 1986, as amended, applicable to regulated investment
companies and by distributing substantially all of its earnings to its
shareholders. Therefore, no Federal income or excise tax provision is
required.
Expenses--General expenses of the Trust are allocated to the Portfolios
based upon relative net assets. Operating expenses directly attributable
to a class of shares are charged to that class' operations. Expenses of
each Portfolio not directly attributable to the operations of any class
of shares are prorated among the classes to which the expense relates based
on the relative average net assets of each class.
2. Investment Advisory Fee, Administrative Fee and Related Party Transac-
tions.
The Trust has entered into an Investment Advisory Agreement with Nations-
Bank, N.A. (together with its predecessors "NationsBank"), a successor to
NationsBank of North Carolina, N.A., an indirect wholly-owned subsidiary
of NationsBank Corporation, with respect to each Portfolio. Under the
terms of this agreement, NationsBank is entitled to a fee equal to 0.30%,
<PAGE>
on an annualized basis, of the average daily net assets of each Portfolio.
Stephens Inc. ("Stephens") serves as the Trust's administrator pursuant to
an Administration Agreement. The Shareholder Services Group, Inc.
("TSSG"), a wholly owned subsidiary of First Data Corporation, Inc.,
serves as the Trust's co-administrator pursuant to a Co-Administration
Agreement. Under the Administration and Co-Administration Agreements, the
administrator and the co-administrator are entitled to receive a combined
fee, computed daily and paid monthly, at the annual rate of 0.10%, on an
annualized basis, of the average daily net assets of the Trust on a com-
bined basis. TSSG also serves as transfer agent for the Portfolios.
For the six months ended October 31, 1995, Stephens earned $39,952 (after
fee waivers) for its services.
The investment adviser and administrator may, from time to time, reduce
their fees (either voluntarily or pursuant to applicable state limita-
tions). For the six months ended October 31, 1995, the investment adviser
and administrator voluntarily waived fees and reimbursed expenses as fol-
lows:
<TABLE>
<CAPTION>
FEES FEES EXPENSES
WAIVED WAIVED BY REIMBURSED
BY ADVISER ADMINISTRATOR BY ADVISER
<S> <C> <C> <C>
Nations Cash Reserves $341,139 $ 39,029 --
Nations Treasury Reserves 535,424 57,757 --
Nations Government Reserves 141,608 17,376 --
Nations Municipal Reserves 158,702 16,702 $14,093
</TABLE>
No officer, director or employee of NationsBank, Stephens or TSSG, or any
affiliate thereof, receives any compensation from the Trust for serving as
Trustee or officer of the Trust. The Trust pays each Trustee an annual fee
of $1,000 ($3,000 for the Chairman of the Board), plus $500 per Portfolio
and an additional $1,000 for each board meeting attended. The Trust also
reimburses expenses incurred by the Trustees in attending such meetings.
Eligible Trustees may participate in nonqualified 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 partici-
pants are paid solely out of each Portfolio's assets. Income earned on
each plan participant's deferral account will be tied to the rate of
return of the eligible mutual funds offered by Nations Funds selected by
the participants or, if no funds are selected, to the rate of return of
the Nations Treasury Fund, a fund of Nations Fund, Inc.
NationsBank of Texas, N.A. acts as the Portfolios' custodian. For the six
months ended October 31, 1995, NationsBank of Texas, N.A. earned $95,994
for its services as custodian. Stephens acts as the distributor of the
Portfolios' shares.
3. Shareholder Servicing and Distribution Plans.
The Trust has adopted a distribution plan ("Liquidity Shares Plan") pursu-
ant to Rule 12b-1 under the 1940 Act for the Liquidity Shares of the Port-
folios. Under the Liquidity Shares Plan, the Trust may reimburse Stephens
up to 0.30% of the average daily net assets of the Liquidity Shares for
actual expenses incurred by Stephens in connection with the distribution
of Liquidity Shares of the Portfolios. Currently, the Trust is not reim-
bursing Stephens for any portion of such expenses.
Unreimbursed expenses incurred by Stephens in a given year may not be re-
covered by Stephens in subsequent years.
In addition, the Liquidity Shares Plan permits the Trust to pay Stephens
an annual fee of up to 0.30% of the average daily net assets of the Li-
quidity Shares of the Nations Cash Reserves, Nations Government Reserves,
and Nations Municipal Reserves and 0.35% of the average daily net assets
of the Liquidity Shares of the Nations Treasury Reserves. Stephens may use
this fee to compensate certain financial institutions that provide admin-
istrative and/or distribution services to Liquidity Shares shareholders.
<PAGE>
The Trustees of the Trust have currently set this fee at an annual rate of
0.15% of the average daily net assets of the Liquidity Shares of each
Portfolio.
For the six months ended October 31, 1995, the Portfolios incurred the
following amounts pursuant to the above plan:
<TABLE>
<CAPTION>
LIQUIDITY
SHARES PLAN
<S> <C>
Nations Cash Reserves $ 6,587
Nations Treasury Reserves 1,349
Nations Government Reserves 2
Nations Municipal Reserves 2,489
</TABLE>
The Trust also has adopted a shareholder servicing plan ("Adviser Shares
Servicing Plan") for the Adviser Shares of the Portfolios. Under the Ad-
viser Shares Servicing Plan, a Portfolio may pay servicing agents that
have entered into a shareholder servicing agreement with the Trust for
certain shareholder support services that are provided by the servicing
agents to holders of Adviser Shares. Payments under the Adviser Shares
Servicing Plan are accrued daily and paid monthly at a rate that will not
exceed 0.25%, on an annualized basis, of the average daily net assets of
the Adviser Shares of the Portfolios. Fees paid pursuant to the Adviser
Shares Servicing Plan are charged as expenses of Adviser Shares of a Port-
folio as accrued.
For the six months ended October 31, 1995, the Portfolios incurred the
following amounts pursuant to the above plan:
<TABLE>
<CAPTION>
ADVISER
SHARES
SERVICING
PLAN
<S> <C>
Nations Cash Reserves $ 61,809
Nations Treasury Reserves 75,114
Nations Government Reserves 129,378
Nations Municipal Reserves 86,974
</TABLE>
A substantial portion of the fees paid, pursuant to the Plans described
above, are paid to affiliates of NationsBank.
The following chart shows the effective rates, expressed as a percentage
of average daily net assets, paid by the Portfolios under the shareholder
servicing and distribution plans for the six months ended October 31,
1995:
<TABLE>
<CAPTION>
ADVISER
SHARES
LIQUIDITY SERVICING
SHARES PLAN PLAN
<S> <C> <C>
Nations Cash Reserves 0.15% 0.25%
Nations Treasury Reserves 0.15 0.25
Nations Government Reserves 0.15 0.25
Nations Municipal Reserves 0.15 0.25
</TABLE>
4. Shares of Beneficial Interest.
As of October 31, 1995, an unlimited number of shares without par value
were authorized for the Trust. The Trust's Declaration of Trust authorizes
the Board of Trustees to classify or reclassify any authorized, but unis-
sued, shares into one or more additional classes or series of shares.
Since the Portfolios have sold and redeemed shares only at a constant net
asset value of $1.00 per share, the number of shares represented by such
sales and redemptions is the same as the amounts shown below for such
transactions.
Changes in capital stock for each Portfolio were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
NATIONS CASH RESERVES:
Capital Shares:
Sold $493,400,903 $ 223,577,458
Issued as
reinvestment of dividends 31,160 21,277
Redeemed (33,378,695) (199,387,461)
Net increase $460,053,368 $ 24,211,274
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
Liquidity Shares:
Sold $ 69,571,599 $ 60,277,929
Issued as reinvest
ment of dividends 208,436 66
Redeemed (58,151,279) (130,063,068)
Net increase/
(decrease) $ 11,628,756 $ (69,785,073)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
1995 1995*
<S> <C> <C>
NATIONS CASH RESERVES:
(continued)
Adviser Shares:
Sold $ 132,871,480 $ 167,716,490
Issued as
reinvestment of dividends 60 65
Redeemed (120,837,416) (120,033,155)
Net increase $ 12,034,124 $ 47,683,400
* The Nations Cash Reserves Adviser Shares commenced operations on Septem-
ber 22, 1994.
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
NATIONS TREASURY RESERVES:
Capital Shares:
Sold $ 773,104,964 $ 1,677,277,600
Redeemed (578,540,379) (1,764,090,662)
Net increase/(decrease) $ 194,564,585 $ (86,813,062)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
Liquidity Shares:
Sold $ 2,050,465 $ 17,013,126
Issued as
reinvestment of dividends 49,616 11,987
Redeemed (1,053,748) (30,578,215)
Net increase/(decrease) $ 1,046,333 $ (13,553,102)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
1995 1995*
<S> <C> <C>
Adviser Shares:
Sold $ 94,099,253 $ 152,926,823
Issued as
reinvestment of dividends 58 63
Redeemed (93,935,933) (97,162,217)
Net increase $ 163,378 $ 55,764,669
* The Nations Treasury Reserves Adviser Shares commenced operations on
September 22, 1994.
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
NATIONS GOVERNMENT RESERVES:
Capital Shares:
Sold $ 59,202,777 $ 4,497,797
Issued as
reinvestment of dividends 60 53
Redeemed (18,645,018) (15,314,675)
Net increase/(decrease) $ 40,557,819 $ (10,816,825)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
Liquidity Shares:
Sold -- $ 243,816,794
Issued as
reinvestment of dividends $ 58 424
Redeemed -- (503,652,300)
Net increase/(decrease) $ 58 $(259,835,082)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
1995 1995*
<S> <C> <C>
Adviser Shares:
Sold $ 165,425,713 $ 328,245,819
Issued as
reinvestment of dividends 57 21
Redeemed (150,940,730) (228,998,294)
Net increase $ 14,485,040 $ 99,247,546
* The Nations Government Reserves Adviser Shares commenced operations on
September 22, 1994.
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
NATIONS MUNICIPAL RESERVES:
Capital Shares:
Sold $ 19,842,781 $ 48,532,498
Redeemed (17,214,049) (51,877,866)
Net increase/(decrease) $ 2,628,732 $ (3,345,368)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
NATIONS MUNICIPAL RESERVES:
(continued)
Liquidity Shares:
Sold $ 26,251,036 $ 31,268,170
Issued as
reinvestment of dividends 50,838 21,817
Redeemed (26,627,863) (42,503,982)
Net decrease $ (325,989) $ (11,213,995)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
1995 1995*
<S> <C> <C>
Adviser Shares:
Sold $ 136,769,203 $ 237,647,735
Issued as
reinvestment of dividends 37 40
Redeemed (134,891,642) (173,524,340)
Net increase $ 1,877,598 $ 64,123,435
* The Nations Municipal Reserves Adviser Shares commenced operations on
September 22, 1994.
</TABLE>
5. Restricted Securities
The following securities are illiquid and restricted as to resale and, ac-
cordingly, are valued at fair value in good faith by or under the direc-
tion of the Trust's Board of Trustees taking into consideration such fac-
tors as the Board deems appropriate.
The following table shows the acquisition date, the par value, value per
unit, market value, the percentage of the Nations Cash Reserves total net
assets that the security comprises as well as the aggregate cost of such
security at October 31, 1995.
<TABLE>
<CAPTION>
ACQUISITION VALUE 10/31/95 PERCENTAGE OF
SECURITY DATE PAR VALUE PER UNIT VALUE NET ASSETS COST
<S> <C> <C> <C> <C> <C> <C>
Goldman Sachs Group
Limited Partner-
ship,
5.875% 04/16/96 10/18/95 $30,000,000 $1.00 $30,000,000 4.51% $30,000,000
</TABLE>
The following table shows the acquisition date, the par value, value per
unit, market value, the percentage of the Nations Treasury Reserves total
net assets that the security comprises as well as the aggregate cost of
such security at October 31, 1995.
<TABLE>
<CAPTION>
REPURCHASE ACQUISITION VALUE 10/31/95 PERCENTAGE OF
AGREEMENT DATE PAR VALUE PER UNIT VALUE NET ASSETS COST
<S> <C> <C> <C> <C> <C> <C>
Morgan
Stanley
Group
Inc.,
5.700%
11/17/95 10/20/95 $25,000,000 $1.00 $25,000,000 4.96% $25,000,000
</TABLE>
Certain securities may be sold only pursuant to certain legal restric-
tions, and may be difficult to sell. The Portfolios will not invest more
than 10% of the value of their respective net assets in securities that
are illiquid.
<PAGE>
6. Organization Costs.
Expenses incurred in connection with the organization of each of the Port-
folios, including the fees and expenses of registering and qualifying its
shares for distribution under Federal and state securities regulations,
are being amortized on a straight-line basis over a period of five years
from commencement of operations of each Portfolio, respectively. In the
event any of the initial shares of a Portfolio are redeemed by any holder
thereof during the amortization period, the proceeds of such redemptions
will be reduced by an amount equal to the pro-rata portion of unamortized
deferred organizational expenses in the same proportion as the number of
shares being redeemed bears to the number of initial shares of each Port-
folio outstanding at the time of such redemption. All such costs have been
fully amortized for Nations Government Reserves.
7. Concentration of Credit.
The Portfolios invest primarily in money market instruments maturing in
one year or less whose ratings are within the highest ratings categories
by a nationally recognized statistical rating agency or, if not rated, are
believed by NationsBank to be of comparable quality. The ability of the
issuers of the securities held by the Portfolios to meet their obligations
may be affected by economic and political developments in a specific in-
dustry, state or region.
8. Capital Loss Carryforward.
As of April 30, 1995, the Portfolios had available for Federal income tax
purposes unused capital losses as follows:
<TABLE>
<CAPTION>
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING
IN 1998 IN 1999 IN 2000 IN 2001 IN 2002 IN 2003
<S> <C> <C> <C> <C> <C> <C>
Nations
Cash
Reserves -- $270 $2,594 $850 $ 574 --
Nations
Treasury
Reserves -- -- -- -- 9,255 $ 3,324
Nations
Govern-
ment
Reserves -- -- -- -- -- 408
Nations
Munici-
pal Re-
serves $72 -- -- -- -- 1,080
</TABLE>
9. Subsequent Event.
As of November 1, 1995, TSSG will be known as First Data Investor Services
Group, Inc.
<PAGE>
This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.
October 31, 1995
<PAGE>
Nations Institutional Reserves
PO Box 34602
Charlotte, NC 28254-3584
Toll Free 1-800-290-2224
IRSAR1095
[Insert Logo]
NATIONS INSTITUTIONAL RESERVES
Nations Cash Reserves
Nations Treasury Reserves
Nations Government Reserves
Nations Municipal Reserves
SEMIANNUAL REPORT
October 31, 1995
