<PAGE> 1
[NATIONS FUNDS LOGO]
[GRAPHIC]
Nations Institutional Reserves
NATIONS CASH RESERVES
NATIONS TREASURY RESERVES
NATIONS GOVERNMENT RESERVES
NATIONS MUNICIPAL RESERVES
FOR THE YEAR ENDED APRIL 30, 1997
<PAGE> 2
<TABLE>
<S> <C>
NOT MAY LOSE VALUE
FDIC- NO BANK GUARANTEE
INSURED
</TABLE>
Nations Institutional Reserves Distributor: Stephens Inc. Stephens Inc., which
is not affiliated with NationsBank, N.A., is not a bank, and the securities
offered by it are not guaranteed by any bank or insured by the FDIC. Stephens
Inc., member NYSE, SIPC.
Nations Institutional Reserves Investment Adviser: NationsBanc Advisors, Inc.
Nations Institutional Reserves Investment Sub-Adviser: TradeStreet Investment
Associates, Inc.
<PAGE> 3
DEAR SHAREHOLDER:
We are pleased to present the Annual Report for Nations Institutional Reserves
(each portfolio, a "Fund" and collectively, the "Funds"). On the following
pages, you will find important information regarding your investment for the
fiscal year ended April 30, 1997.
SIGNIFICANT GROWTH FOR THE ECONOMY
During the first quarter of 1997, the Federal Open Market Committee ("FOMC") of
the Federal Reserve Board increased the targeted Federal Funds ("Fed Funds")
rate by 25 basis points, to 5.50% from 5.25%. This rate increase was the result
of above-trend growth in the economy.
As evidenced by several economic indicators, monetary policy does not appear
tight. The Gross Domestic Product was up 3.90% for the fourth quarter of 1996
and was reported at 5.60% during the first quarter of 1997, the strongest one
quarter gain in nine years. In addition, data on retail sales in January and
February were exceptionally strong, suggesting very robust consumer activity.
While wages displayed a gradual acceleration, solid job growth in the past two
quarters drove the unemployment rate down to 4.90%, the lowest since 1973.
This continued above-trend economic growth is partly the result of consumer
confidence being at an all-time high. Currently, the markets are concerned that
this may cause a rise in the core inflation rate, and the FOMC may decide to
increase the Fed Funds rate further to prevent inflation.
LOOKING AHEAD
If the current economic climate continues, it is likely that the FOMC will
further tighten the targeted Fed Funds rate. To capture relative yield value
along the curve within the changing economic climate, the Funds will continue to
be managed strategically. As economic and market conditions evolve, the
portfolio managers will attempt to position the portfolios appropriately.
PERFORMANCE DISCUSSION
The following sections provide you with additional information on the four
Funds, including the investment sub-adviser's review of the portfolios and each
Fund's performance and asset allocation.
NATIONS CASH RESERVES
Because the money market yield curve remained positively sloped throughout most
of the fiscal year and recently steepened this past quarter, the Fund was able
to find value along the yield curve. Throughout the year, economic signals were
mixed. Although the economy strengthened overall, no significant signs of
inflation developed. The FOMC's decision to increase the targeted Fed Funds rate
was a precautionary move to prevent inflation from emerging in an environment of
above-trend economic growth.
The Fund maintained a defensive strategy throughout the year to hedge the shifts
in the short-term yield curve. Overnight repurchase agreements, commercial paper
and time deposits were purchased to provide daily liquidity. The Fund held
floating rate notes based on various short-term indices to hedge interest-rate
fluctuations. In addition, the Fund purchased securities with longer maturities
to lock in yields when break-even analyses suggested value. Overall, commercial
paper represented the best value in terms of yield, liquidity and available
supply.
We expect that the Fund will continue to implement a defensive strategy and
remain cautious in light of the current economic environment and the possibility
of future FOMC rate increases. In addition, the Fund will continue to maintain
short-term liquidity and purchase additional floating rate notes if pricing is
attractive.
<PAGE> 4
NATIONS CASH RESERVES -- 30-DAY CURRENT YIELD COMPARISON
Annualized Yield
<TABLE>
<CAPTION>
IBC Financial Data
First Tier
Nations Cash Reserves - Institutional-Only
Capital Class Shares Average
----------------------- ------------------
<S> <C> <C>
4/96 5.21 5.03
5/96 5.2 5.03
6/96 5.24 5.03
7/96 5.3 5.08
8/96 5.32 5.08
9/96 5.32 5.1
10/96 5.29 5.09
11/96 5.3 5.1
12/96 5.32 5.12
1/97 5.35 5.12
2/97 5.29 5.1
3/97 5.34 5.123
4/97 5.45 5.22
</TABLE>
7-day Current Yield as of 4/30/97: 5.48%
7-day Effective Yield as of 4/30/97: 5.63%
Source: IBC Financial Data, Inc.
NATIONS CASH RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997*
Medium Term Notes, Municipal Bonds, Repurchase
Agreements and Other Assets and Liabilities (Net) 10.5%
Money Market Funds 3.4%
U.S. Government Agency Obligations 2.8%
Time Deposits-Euro 17.8%
Guaranteed Investment Contracts 6.5%
Certificates of Deposit 9.7%
Commercial Paper 37.7%
Corporate Obligations 11.6%
Note: Percentages indicate investments as a percentage of net assets.
NATIONS TREASURY RESERVES AND NATIONS GOVERNMENT RESERVES
Throughout the last quarter of 1996, the U.S. Government agency yield curve was
relatively flat, making it challenging to find value along the curve. As
stronger economic data emerged in the first quarter of 1997, the curve began to
have a positive slope and, as the yield curve began to steepen, U.S. Government
agencies began to issue one-year notes. In addition, issues available in the
secondary market have continued to offer incremental value.
Investments have been made in repurchase agreements and the one-month area of
the market. Going forward, we expect that the Funds will maintain a relatively
conservative approach as signs of another FOMC interest rate tightening evolve.
With the backup in the market, the Funds have made small purchases of one-year
securities, and we expect to purchase longer-term securities as break-even
analysis warrants.
2
<PAGE> 5
NATIONS TREASURY RESERVES -- 30-DAY CURRENT YIELD COMPARISON
<TABLE>
<CAPTION>
7-Day 7-Day
Current Effective
Annualized Yield Yield Yield
------------------------------------------------------------------------------- as of as of
4/96 5/96 6/96 7/96 8/96 9/96 10/96 11/96 12/96 1/97 2/97 3/97 4/97 4/30/97 4/30/97
---- ---- ---- ---- ---- ---- ----- ----- ----- ---- ---- ---- ---- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Treasury Reserves -
Capital Class Shares ...... 5.14 5.11 5.14 5.15 5.15 5.14 5.14 5.24 5.25 5.17 5.16 5.22 5.33 5.31% 5.45%
IBC Financial Data
U.S. Treasury &
Repo Average .............. 4.59 4.57 4.6 4.63 4.61 4.62 4.62 4.69 4.69 4.66 4.62 4.68 4.75
</TABLE>
Source: IBC Financial Data, Inc.
NATIONS TREASURY RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997*
<TABLE>
<S> <C>
Repurchase Agreements and Other
Assets and Liabilities (Net) ................................. 80.6%
U.S. Treasury Notes ............................................ 7.3%
U.S. Treasury Bills ........................................... 6.4%
Money Market Funds ............................................ 5.7%
</TABLE>
Note: Percentages indicate investments as a percentage of net assets.
NATIONS GOVERNMENT RESERVES -- 30-DAY CURRENT YIELD COMPARISON
<TABLE>
<CAPTION>
7-Day 7-Day
Current Effective
Annualized Yield Yield Yield
------------------------------------------------------------------------------- as of as of
4/96 5/96 6/96 7/96 8/96 9/96 10/96 11/96 12/96 1/97 2/97 3/97 4/97 4/30/97 4/30/97
---- ---- ---- ---- ---- ---- ----- ----- ----- ---- ---- ---- ---- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Government Reserves -
Capital Class Shares ...... 5.1 5.09 5.15 5.2 5.21 5.23 5.18 5.23 5.21 5.21 5.19 5.27 5.37 5.38% 5.52%
IBC Financial Data
Government-Only
Institutional-Only
Average ................... 4.9 4.87 4.92 4.93 4.93 4.94 4.92 4.98 4.97 4.95 4.94 4.99 5.08
</TABLE>
Source: IBC Financial Data, Inc.
3
<PAGE> 6
NATIONS GOVERNMENT RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997*
<TABLE>
<S> <C>
Repurchase Agreements and Other
Assets and Liabilities (Net) .......................... 55.9%
Student Loan Marketing Association ...................... 15.5%
Federal Home Loan Bank .................................. 10.6%
Federal Farm Credit Bank ................................ 7.5%
Federal Home Loan Mortgage Corporation .................. 5.0%
Federal National Mortgage Association ................... 4.5%
Money Market Fund ....................................... 1.0%
</TABLE>
Note: Percentages indicate investments as a percentage of net assets.
NATIONS MUNICIPAL RESERVES
The first quarter of 1997 created more of a challenge for the Fund to find
incremental yield opportunities than that of prior years. Historically,
municipal money market rates are lowest in January and gradually increase during
tax season as April 15 approaches. This year, however, the reverse has been
true. The highest rates of the year through April 30, for both floaters and
notes, were in January. Starting in February, both money market and bond
portfolio managers attempted to shorten their funds' maturities in anticipation
of a possible FOMC interest-rate tightening. As a result, the demand for
floaters increased and these investments became more difficult to find as well
as more expensive. In fact, there have been relatively few municipal securities
available that have provided opportunities on a break-even analysis. When
municipal note yields exceed 4.00%, we expect to extend the Fund's weighted
average maturity. Until then, we expect the Fund to continue to implement a
laddered maturity structure.
NATIONS MUNICIPAL RESERVES -- 30-DAY CURRENT YIELD COMPARISON
<TABLE>
<CAPTION>
7-Day 7-Day
Current Effective
Annualized Yield Yield Yield
------------------------------------------------------------------------------- as of as of
4/96 5/96 6/96 7/96 8/96 9/96 10/96 11/96 12/96 1/97 2/97 3/97 4/97 4/30/97 4/30/97
---- ---- ---- ---- ---- ---- ----- ----- ----- ---- ---- ---- ---- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nations Municipal Reserves -
Capital Class Shares ...... 3.44 3.66 3.33 3.05 3.44 3.47 3.38 3.41 3.49 3.3 3.3 3.17 3.67 4.23% 4.32%
IBC Financial Data
Inst.-Only
Tax-Free Average .......... 3.18 3.37 3.08 2.87 3.17 3.21 3.16 3.17 3.24 3.09 3.06 2.96 3.35
</TABLE>
Source: IBC Financial Data, Inc.
4
<PAGE> 7
NATIONS MUNICIPAL RESERVES -- ASSET ALLOCATION AS OF APRIL 30, 1997*
<TABLE>
<S> <C>
Demand Notes ........................................ 80.9%
Market Notes ........................................ 18.9%
Money Market Funds and Other Net
Assets and Liabilities (Net) ....................... 0.2%
</TABLE>
Note: Percentages indicate investments as a percentage of net assets.
SERVING YOUR SHORT-TERM INVESTMENT NEEDS
As a series of money market funds designed specifically for the needs of
institutional investors, the Funds are managed daily to provide your
organization with access to the major sectors of the money
market -- conveniently and cost effectively.
We thank you for choosing the Funds to help pursue your short-term cash
management needs.
Sincerely,
<TABLE>
<S> <C>
/s/ A. Max Walker /s/ Mark H. Williamson
A. Max Walker Mark H. Williamson
President and Chairman of the Board President, NationsBanc Advisors, Inc.
</TABLE>
April 30, 1997
MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
HOWEVER, THERE CAN BE NO ASSURANCE THAT THE FUNDS WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE AS MARKET
CONDITIONS CHANGE. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS.
INVESTMENTS IN MONEY MARKET FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
The 30-day and 7-day current net annualized yields are based on the average net
income per share for the thirty days ended April 30, 1997 and the seven days
ended April 30, 1997, respectively, and the offering price on that date. The
yields are annualized and include the effects of voluntary expense waivers by
the Funds' investment adviser and administrator. If these waivers were not in
effect, the yields would have been lower.
- ---------------
* Portfolio holdings are subject to change and may not be representative of
current holdings.
5
<PAGE> 8
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 0.7%
Bankers Trust Company of New York:
$ 10,000,000 5.910%................................................. 03/12/98 $ 9,997,524
10,000,000 6.000%................................................. 03/24/98 9,989,310
- -------------------------------------------------------------------------------------------------------
Total Certificates of Deposit -- Domestic (Cost $19,986,834)....... 19,986,834
- -------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- YANKEE -- 9.0%
Bank of Tokyo Mitsubishi, (New York):
25,000,000 5.590%................................................. 05/05/97 25,000,000
20,000,000 5.560%................................................. 07/18/97 20,000,000
20,000,000 5.660%................................................. 08/29/97 20,000,000
20,000,000 5.700%................................................. 09/30/97 20,000,000
Bayerische Landesbank AG, (New York):
50,000,000 5.663%+................................................ 05/01/97++ 50,000,000
25,000,000 5.750%................................................. 12/19/97 25,000,000
Deutsche Bank, (New York):
25,000,000 5.655%................................................. 12/19/97 25,000,000
5,000,000 5.860%................................................. 03/10/98 4,998,359
National Bank of Canada, (New York):
10,000,000 5.850%................................................. 02/27/98 10,000,000
10,000,000 5.940%................................................. 03/06/98 10,000,000
17,000,000 6.030%................................................. 03/18/98 16,998,572
Sanwa Bank Ltd. of New York,
15,000,000 5.660%................................................. 09/11/97 15,000,000
- -------------------------------------------------------------------------------------------------------
Total Certificates of Deposit -- Yankee (Cost $241,996,931)........ 241,996,931
- -------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 37.7%
AC Acquisition Holding Company,
20,000,000 Discount note.......................................... 05/08/97 19,978,378
Aetna Services, Inc.:
25,000,000 Discount note.......................................... 05/23/97 24,914,903
25,000,000 Discount note.......................................... 05/28/97 24,895,938
Barnett Banks, Inc.,
30,000,000 Discount note.......................................... 05/21/97 29,907,833
Chrysler Financial Corporation,
15,000,000 Discount note.......................................... 05/08/97 14,983,754
Columbia/HCA Healthcare Corporation:
8,000,000 Discount note.......................................... 05/08/97 7,991,289
11,800,000 Discount note.......................................... 05/09/97 11,785,315
20,000,000 Discount note.......................................... 05/22/97 19,935,016
15,000,000 Discount note.......................................... 05/27/97 14,939,550
Copley Financing Corporation,
26,735,000 Discount note.......................................... 05/23/97 26,644,487
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER (continued)
Corporate Receivables Corporation,
$ 43,500,000 Discount note.......................................... 05/01/97 $ 43,500,000
Countrywide Funding Corporation:
30,000,000 Discount note.......................................... 05/01/97 30,000,000
12,350,000 Discount note.......................................... 05/20/97 12,313,825
35,000,000 Discount note.......................................... 05/23/97 34,881,292
Dynamic Funding Corporation:
35,000,000 Discount note.......................................... 05/02/97 34,994,507
13,121,000 Discount note.......................................... 05/09/97 13,104,584
14,667,000 Discount note.......................................... 05/12/97 14,641,007
23,000,000 Discount note.......................................... 05/19/97 22,935,025
24,633,000 Discount note.......................................... 05/23/97 24,548,700
Finova Capital Corporation,
24,550,000 Discount note.......................................... 05/21/97 24,474,304
General Motors Acceptance Corporation:
13,150,000 Discount note.......................................... 05/15/97 13,121,567
20,000,000 Discount note.......................................... 06/23/97 19,840,117
25,000,000 Discount note.......................................... 07/09/97 24,739,334
20,000,000 Discount note.......................................... 08/25/97 19,655,867
15,000,000 Discount note.......................................... 10/07/97 14,614,425
20,000,000 Discount note.......................................... 10/28/97 19,415,000
International Securitization Corporation,
17,000,000 Discount note.......................................... 05/15/97 16,964,168
Lehman Brothers Holdings Inc.:
25,000,000 Discount note.......................................... 06/06/97 24,863,750
10,000,000 Discount note.......................................... 11/21/97 9,668,500
Mitsubishi Motors Credit of America, Inc. (Bank of Tokyo
Mitsubishi, Ltd. LOC),
25,000,000 Discount note.......................................... 05/13/97 24,953,583
National Bank of Canada, (New York):
15,000,000 Discount note.......................................... 06/02/97 14,922,800
20,000,000 Discount note.......................................... 06/06/97 19,891,900
National Fleet Funding Corporation:
20,000,000 Discount note.......................................... 05/07/97 19,981,433
18,000,000 Discount note.......................................... 05/20/97 17,947,275
NYNEX Corporation:
15,000,000 Discount note.......................................... 05/13/97 14,972,250
25,000,000 Discount note.......................................... 05/22/97 24,919,354
ODC Capital Corporation:
26,217,000 Discount note.......................................... 05/19/97 26,144,117
20,000,000 Discount note.......................................... 05/20/97 19,941,311
Philip Morris Companies Inc.,
20,000,000 Discount note.......................................... 05/01/97 20,000,000
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER (continued)
Renault Credit International:
$ 20,000,000 Discount note.......................................... 05/09/97 $ 19,975,200
20,000,000 Discount note.......................................... 05/12/97 19,965,961
SRD Finance Inc., (Bank of Tokyo Mitsubishi, Ltd. LOC),
7,000,000 Discount note.......................................... 05/29/97 6,969,620
Sumitomo Corporation of America:
25,000,000 Discount note.......................................... 05/12/97 24,958,979
5,000,000 Discount note.......................................... 07/09/97 4,947,771
5,000,000 Discount note.......................................... 08/11/97 4,923,783
15,000,000 Discount note.......................................... 08/13/97 14,766,867
Toshiba America Inc.,
10,000,000 Discount note............................................ 06/30/97 9,910,333
Tri-Lateral Capital (USA) Inc.:
10,047,000 Discount note.......................................... 05/15/97 10,024,925
16,000,000 Discount note.......................................... 05/16/97 15,964,000
18,250,000 Discount note.......................................... 05/19/97 18,200,725
12,685,000 Discount note.......................................... 07/14/97 12,535,070
10,197,000 Discount note.......................................... 07/17/97 10,071,155
Tribune Company,
22,000,000 Discount note............................................ 07/28/97 21,693,467
- -------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $1,012,834,314)..................... 1,012,834,314
- -------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 11.6%
Bankers Trust Company of New York:
20,000,000 5.680%+................................................ 05/01/97++ 20,000,000
75,000,000 5.690%+(a)............................................. 05/01/97++ 74,987,438
Bear Stearns & Company, Inc.,
25,000,000 5.738%+................................................ 05/05/97++ 25,000,000
Beta Finance Inc.,
25,000,000 5.890%+................................................ 05/06/97++ 25,000,000
General Motors Acceptance Corporation,
25,000,000 5.700%+................................................ 05/01/97++ 24,998,294
International Business Machines Credit Corporation,
70,000,000 5.730%+................................................ 05/01/97++ 70,000,000
Lehman Brothers Holdings Inc.,
50,000,000 5.788%+................................................ 05/08/97++ 50,000,000
Merrill Lynch & Company, Inc.,
20,000,000 5.680%+................................................ 05/01/97++ 20,000,000
- -------------------------------------------------------------------------------------------------------
Total Corporate Obligations (Cost $309,985,732).................... 309,985,732
- -------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
GUARANTEED INVESTMENT CONTRACTS -- 6.5%
Jackson National Life Insurance Company:
$ 50,000,000 5.650%**+#............................................. 06/14/97++ $ 50,000,000
50,000,000 5.870%**+.............................................. 07/01/97++ 50,000,000
New York Life Insurance Company,
50,000,000 5.864%**+.............................................. 07/01/97++ 50,000,000
Peoples Security Life Insurance Company,
25,000,000 5.740%**+#............................................. 05/01/97++ 25,000,000
- -------------------------------------------------------------------------------------------------------
Total Guaranteed Investment Contracts (Cost $175,000,000).......... 175,000,000
- -------------------------------------------------------------------------------------------------------
MEDIUM TERM NOTES -- 0.6%
Beta Finance Corporation Inc.,
10,000,000 5.800%................................................. 03/03/98 10,000,000
Goldman, Sachs & Company,
7,000,000 6.100%(a).............................................. 04/15/98 6,997,278
- -------------------------------------------------------------------------------------------------------
Total Medium Term Notes (Cost $16,997,278)......................... 16,997,278
- -------------------------------------------------------------------------------------------------------
MUNICIPAL BOND -- 1.5% (Cost $40,000,000)
Virginia (State of), Housing Development Authority,
40,000,000 5.450%+................................................ 05/07/97++ 40,000,000
- -------------------------------------------------------------------------------------------------------
TIME DEPOSIT-EURO -- 17.8%
First National Bank of Chicago,
125,000,000 5.688%................................................. 05/01/97 125,000,000
First Union National Bank:
100,000,000 5.656%................................................. 05/01/97 100,000,000
125,000,000 5.688%................................................. 05/01/97 125,000,000
Societe Generale,
125,000,000 5.750%................................................. 05/01/97 125,000,000
- -------------------------------------------------------------------------------------------------------
Total Time Deposit-Euro (Cost $475,000,000)........................ 475,000,000
- -------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.8%
Federal Home Loan Bank (FHLB), Note,
25,000,000 5.680%+................................................ 05/01/97++ 25,000,000
Student Loan Marketing Association (SLMA), Note:
25,000,000 5.800%+................................................ 05/01/97++ 25,000,000
25,000,000 5.660%+................................................ 05/06/97++ 24,999,689
- -------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (Cost $74,999,689)........ 74,999,689
- -------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 8.2%
Agreement with CS First Boston Corporation,
125,000,000 5.600% dated 04/30/97 to be repurchased at $125,019,444 on
05/01/97, collateralized by $130,605,000 U.S. Government
securities due 05/01/97-10/20/97 (value $129,401,214)............ 125,000,000
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS CASH RESERVES (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS (continued)
Agreement with Lehman Brothers Holdings Inc.,
$ 95,000,000 5.770% dated 04/30/97 to be repurchased at $95,015,226 on 05/01/97,
collateralized by $96,901,000 Qualified First Tier Money Market
Instruments, 5.370% -- 5.490% due 05/12/97 -- 08/01/97 (value
$96,901,000)..................................................... $ 95,000,000
- -------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $220,000,000).................... 220,000,000
- -------------------------------------------------------------------------------------------------------
Shares
- -------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS -- 3.4%
45,764,548 Aim Liquid Asset Portfolio......................................... 45,764,548
25,532,000 Aim Prime Fund..................................................... 25,532,000
20,394,000 Dreyfus Cash Management Plus Fund.................................. 20,394,000
5,500 Fidelity Institutional Cash Variable Rate Fund..................... 5,500
- -------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $91,696,048).................... 91,696,048
- -------------------------------------------------------------------------------------------------------
Total Investments (Cost $2,678,496,826*)............. 99.8% 2,678,496,826
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET)....................... 0.2%
Other assets....................................................... 11,503,289
Dividends payable.................................................. (4,353,727)
Investment advisory fee payable (Note 2)........................... (334,743)
Shareholder servicing and distribution fees payable (Note 3)....... (190,443)
Accrued Trustees' fees and expenses (Note 2)....................... (88,610)
Administration fee payable (Note 2)................................ (26,619)
Custodian fees payable (Note 2).................................... (25,969)
Accrued registration and filing fees............................... (305,489)
Accrued expenses and other payables................................ (40,297)
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET)........................... 6,137,392
- -------------------------------------------------------------------------------------------------------
NET ASSETS............................................... 100.0% $2,684,634,218
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($1,684,232,624 / 1,684,234,691 shares outstanding)................ $ 1.00
=======================================================================================================
Liquidity Class Shares:
($419,851,406 / 419,851,922 shares outstanding).................... $ 1.00
=======================================================================================================
Adviser Class Shares:
($247,550,587 / 247,550,891 shares outstanding).................... $ 1.00
=======================================================================================================
Market Class Shares:
($332,999,601 / 333,000,010 shares outstanding).................... $ 1.00
=======================================================================================================
* Aggregate cost for Federal tax purposes.
** Restricted security (Note 5).
+ Floating rate note. The interest rate shown reflects the rate currently in effect.
++ Reset date. Interest rates reset either daily, weekly, monthly, quarterly or semi-annually.
# Security subject to a demand feature which allows the Portfolio to put the security back to the
issuer in 180 calendar days.
(a) Security is not registered under the Securities Act of 1933. These securities may be resold in
transactions exempt from registration to qualified institutional buyers.
- -------------------------------------------------------------------------------------------------------
AT APRIL 30, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold.................. $ (3,296)
Paid-in capital.................................................... 2,684,637,514
- -------------------------------------------------------------------------------------------------------
NET ASSETS......................................................... $2,684,634,218
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
11
<PAGE> 14
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS TREASURY RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 13.7%
U.S. TREASURY BILLS -- 6.4%
$ 5,000,000 Discount note#............................................... 05/01/97 $ 5,000,000
10,000,000 Discount note#............................................... 08/21/97 9,828,267
5,000,000 Discount note#............................................... 10/16/97 4,875,108
10,000,000 Discount note#............................................... 11/13/97 9,714,166
15,000,000 Discount note#............................................... 01/08/98 14,443,500
10,000,000 Discount note#............................................... 02/05/98 9,586,222
- -------------------------------------------------------------------------------------------------------
53,447,263
- -------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 7.3%
5,000,000 6.125%#...................................................... 05/31/97 5,001,540
20,000,000 5.875%#...................................................... 07/31/97 20,028,490
5,000,000 5.750%#...................................................... 09/30/97 5,001,040
15,000,000 5.625%....................................................... 10/31/97 15,002,850
15,000,000 6.125%#...................................................... 03/31/98 15,017,890
- -------------------------------------------------------------------------------------------------------
60,051,810
- -------------------------------------------------------------------------------------------------------
Total U.S. Treasury Obligations (Cost $113,499,073)................... 113,499,073
- -------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 92.8%
206,000,000 Agreement with Bankers Trust Company,
5.400% dated 04/30/97 to be repurchased at $206,030,900
on 05/01/97, collateralized by $7,253,000 U.S. Treasury Bills, due
05/08/97 - 10/16/97; $29,161,000 U.S. Treasury Bonds, 7.625% -
12.500% due 08/15/14 - 08/15/29; $170,859,000 U.S. Treasury Notes,
5.500% - 7.500% due 09/30/97 - 03/31/08 (value $210,204,236)........ 206,000,000
Agreement with CS First Boston Corporation,
98,966,000 Interest is payable monthly. The agreement is terminable by the fund
daily. The final maturity of the agreement is 07/01/97,
collateralized by $430,286,000 U.S. Treasury Strips, Principal only,
due 05/15/17 (value $103,487,656)##................................. 98,966,000
18,000,000 Agreement with Dean Witter Discover and Company,
4.950% dated 04/30/97 to be repurchased at $18,002,475 on 05/01/97,
collateralized by $16,557,000 U.S. Treasury Bonds, 6.750% due
08/15/26; $2,069,000 U.S. Treasury Note, 7.750% due 02/15/01 (value
$18,360,098)........................................................ 18,000,000
40,000,000 Agreement with Dresdner Bank Inc.,
5.500% dated 04/30/97 to be repurchased at $40,006,111 on 05/01/97,
collateralized by $47,303,310 GNMA with various maturities and
coupon rates (value $40,801,428).................................... 40,000,000
41,000,000 Agreement with First Union Corporation,
5.430% dated 04/30/97 to be repurchased at $41,006,184 on 05/01/97,
collateralized by $6,210,000 U.S. Treasury Bonds, 6.875% - 11.250%
due 02/15/15 - 08/15/25; $8,732,000 U.S. Treasury Note, 6.250% -
7.750% due 06/30/98 - 01/31/00; $215,000 U.S. Treasury Strips,
Interest Only 08/15/97 - 11/15/14; $23,887,000 cash (value
$41,094,224)........................................................ 41,000,000
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 15
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS TREASURY RESERVES (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS (continued)
$41,000,000 Agreement with Goldman Sachs & Company,
5.550% dated 04/30/97 to be repurchased at $41,006,321 on 05/01/97,
collateralized by $41,941,174 GNMA, 6.000% due 02/20/27
(value $41,826,448)................................................. $ 41,000,000
41,000,000 Agreement with HSBC Securities,
5.550% dated 04/30/97 to be repurchased at $41,006,321 on 05/01/97,
collateralized by $42,595,000 GNMA, 6.500% due 09/20/26
(value $41,823,382)................................................. 41,000,000
40,000,000 Agreement with J.P. Morgan & Company,
5.420% dated 04/30/97 to be repurchased at $40,006,022 on 05/01/97,
collateralized by $39,621,000 U.S. Treasury Note, 6.375% due
05/15/99 (value $40,800,653)........................................ 40,000,000
40,000,000 Agreement with J.P. Morgan & Company,
5.440% dated 04/30/97 to be repurchased at $40,006,044 on 05/01/97,
collateralized by $39,621,000 U.S. Treasury Note, 6.375% due
05/15/99 (value $40,800,653)........................................ 40,000,000
30,000,000 Agreement with Lehman Brothers Holdings Inc.,
5.380% dated 04/30/97 to be repurchased at $30,004,483 on 05/01/97,
collateralized by $14,878,000 U.S. Treasury Bond, 6.500% - 6.750%
due 08/15/26 - 11/15/26; $15,753,000 U.S. Treasury Note, 5.875% -
7.500% due 11/15/01 - 11/30/01 (value $30,589,974).................. 30,000,000
10,000,000 Agreement with Lehman Brothers Holdings Inc.,
5.430% dated 04/30/97 to be repurchased at $10,001,508 on 05/01/97,
collateralized by $10,250,000 U.S. Treasury Note, 5.875% due
11/30/01 (value $10,195,760)........................................ 10,000,000
41,000,000 Agreement with Merrill Lynch & Company, Inc.,
5.600% dated 04/30/97 to be repurchased at $41,006,378 on 05/01/97,
collateralized by $47,915,000 GNMA, 8.000% due 12/15/23
(value $41,822,891)................................................. 41,000,000
41,000,000 Agreement with Morgan Stanley Group Inc.,
5.530% dated 04/30/97 to be repurchased at $41,006,298 on 05/01/97,
collateralized by $42,250,000 GNMA, 8.000% due 01/01/00
(value $42,029,273)................................................. 41,000,000
41,000,000 Agreement with Smith Barney, Inc.,
5.570% dated 04/30/97 to be repurchased at $41,006,344 on 05/01/97,
collateralized by $42,133,060 GNMA, 7.500% due 02/15/27
(value $41,820,000)................................................. 41,000,000
</TABLE>
See Notes to Financial Statements.
13
<PAGE> 16
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS TREASURY RESERVES (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS (continued)
$40,000,000 Agreement with UBS Securities, Inc.,
5.550% dated 04/30/97 to be repurchased at $40,006,167 on 05/01/97,
collateralized by $70,745,962 GNMA, 7.000% - 12.500% due 9/20/99 -
04/20/27 (value $40,802,531)........................................ $ 40,000,000
- -------------------------------------------------------------------------------------------------------
Total Repurchase Agreements -- Fixed Rate (Cost $768,966,000)......... 768,966,000
- -------------------------------------------------------------------------------------------------------
Shares
- -------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS -- 5.7%
16,937,000 AIM Treasury Fund..................................................... 16,937,000
14,816,000 Dreyfus Treasury Cash Management Fund................................. 14,816,000
15,148,000 Fidelity Institutional Cash Fund...................................... 15,148,000
- -------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $46,901,000)........................... 46,901,000
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $929,366,073*)....................... 112.2% 929,366,073
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET)........................... (12.2)%
Other assets.......................................................... 775,052
Due to custodian...................................................... (152,042)
Payable for reverse repurchase agreement (Note 1)..................... (98,966,000)
Dividends payable..................................................... (2,532,705)
Shareholder servicing and distribution fees payable (Note 3).......... (80,502)
Investment advisory fee payable (Note 2).............................. (79,674)
Accrued Trustees' fees and expenses................................... (44,929)
Custodian fees payable (Note 2)....................................... (25,025)
Administration fee payable (Note 2)................................... (8,897)
Accrued expenses and other payables................................... (49,523)
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. (101,164,245)
- -------------------------------------------------------------------------------------------------------
NET ASSETS................................................... 100.0% $ 828,201,828
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 17
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($468,975,360 [DIVIDED BY] 468,991,605 shares outstanding)............ $ 1.00
=======================================================================================================
Liquidity Class Shares:
($81,575,151 [DIVIDED BY] 81,577,976 shares outstanding).............. $ 1.00
=======================================================================================================
Adviser Class Shares:
($154,255,582 [DIVIDED BY] 154,260,925 shares outstanding)............ $ 1.00
=======================================================================================================
Market Class Shares:
($123,395,735 [DIVIDED BY] 123,400,010 shares outstanding)............ $ 1.00
=======================================================================================================
</TABLE>
* Aggregate cost for Federal tax purposes.
# Denotes securities subject to repurchase under reverse repurchase agreements
as of April 30, 1997 (Note 1).
## Security segregated as collateral for reverse repurchase agreement.
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
AT APRIL 30, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold..................... $ (27,840)
Paid-in capital....................................................... 828,229,668
- -------------------------------------------------------------------------------------------------------
NET ASSETS............................................................ $ 828,201,828
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS GOVERNMENT RESERVES Date (Note 1)
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 43.1%
FEDERAL FARM CREDIT BANK (FFCB) NOTES -- 7.5%
$10,000,000 5.520%+................................................... 05/01/97++ $ 9,999,413
5,000,000 5.600%.................................................... 06/03/97 4,999,367
5,000,000 5.840%.................................................... 06/18/97 4,998,994
8,000,000 5.900%.................................................... 04/01/98 7,983,847
- ------------------------------------------------------------------------------------------------------
27,981,621
- ------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (FHLB) -- 10.6%
3,000,000 Discount note............................................. 05/01/97 3,000,000
5,000,000 Discount note............................................. 05/22/97 4,984,396
5,000,000 Discount note............................................. 07/14/97 4,945,836
Notes:
10,000,000 5.680%+................................................... 05/01/97++ 10,000,000
4,000,000 5.850%.................................................... 11/06/97 4,000,000
5,000,000 5.625%.................................................... 12/26/97 5,000,000
4,000,000 5.675%.................................................... 02/12/98 3,994,347
4,000,000 5.875%.................................................... 02/12/98 4,000,000
- ------------------------------------------------------------------------------------------------------
39,924,579
- ------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -- 5.0%
10,000,000 Discount note............................................. 05/15/97 9,979,389
4,000,000 Discount note............................................. 05/29/97 3,983,604
5,000,000 Discount note............................................. 06/04/97 4,975,019
- ------------------------------------------------------------------------------------------------------
18,938,012
- ------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) -- 4.5%
5,000,000 Discount note............................................. 05/13/97 4,991,083
7,000,000 Discount note............................................. 09/08/97 6,864,366
Note,
5,000,000 5.550%+................................................... 05/01/97++ 4,999,517
- ------------------------------------------------------------------------------------------------------
16,854,966
- ------------------------------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 15.5%
10,000,000 5.800%+................................................... 05/01/97++ 10,000,000
20,000,000 5.530%+................................................... 05/06/97++ 19,986,337
8,000,000 5.550%+................................................... 05/06/97++ 8,000,000
5,000,000 5.660%+................................................... 05/06/97++ 4,999,923
10,000,000 5.680%+................................................... 05/06/97++ 9,999,135
Note,
5,000,000 5.870%.................................................... 06/30/97 5,001,165
- ------------------------------------------------------------------------------------------------------
57,986,560
- ------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (Cost $161,685,738).......... 161,685,738
- ------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 55.7%
93,000,000 Agreement with CS First Boston Corporation,
5.600% dated 04/30/97 to be repurchased at $93,014,467
on 05/01/97, collateralized by $95,260,000 U.S.
Government securities due 05/06/97 - 05/16/97 (value
$95,086,538)............................................ 93,000,000
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS GOVERNMENT RESERVES (Note 1)
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS (continued)
$12,000,000 Agreement with Goldman, Sachs & Company,
5.550% dated 04/30/97 to be repurchased at $12,001,850
on 05/01/97, collateralized by $12,275,466 GNMA, 6.000%
due 02/20/27 (value $12,241,888)........................ $ 12,000,000
12,000,000 Agreement with Morgan Stanley Group Inc.,
5.530% dated 04/30/97 to be repurchased at $12,001,843
on 05/01/97, collateralized by $17,575,000 GNMA, 6.000%
due 12/20/23 (value $12,405,645)........................ 12,000,000
92,000,000 Agreement with Smith Barney, Inc.,
5.570% dated 04/30/97 to be repurchased at $92,014,234
on 05/01/97, collateralized by $125,422,832 GNMA,
7.000% - 9.000% due 01/01/00 - 04/15/27
(value $93,840,000)..................................... 92,000,000
- ------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $209,000,000)....................... 209,000,000
- ------------------------------------------------------------------------------------------------------
Shares
- ------------------------------------------------------------------------------------------------------
MONEY MARKET FUND -- 1.0% (Cost $3,902,000)
3,902,000 Fidelity Institutional Cash Fund...................................... 3,902,000
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $374,587,738*).................... 99.8% 374,587,738
- ------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET)........................ 0.2%
Other assets.......................................................... 1,988,930
Due to custodian...................................................... (14,402)
Dividends payable..................................................... (1,132,643)
Shareholder servicing and distribution fees payable (Note 3).......... (71,067)
Investment advisory fee payable (Note 2).............................. (41,078)
Accrued Trustees' fees and expenses (Note 2).......................... (14,156)
Custodian fees payable (Note 2)....................................... (6,361)
Administration fee payable (Note 2)................................... (3,901)
Accrued expenses and other payables................................... (90,448)
- ------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET).............................. 614,874
- ------------------------------------------------------------------------------------------------------
NET ASSETS................................................ 100.0% $375,202,612
- ------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($125,376,757 [DIVIDED BY] 125,377,425 shares outstanding)............ $ 1.00
======================================================================================================
Liquidity Class Shares:
($6,481,642 [DIVIDED BY] 6,481,676 shares outstanding)................ $ 1.00
======================================================================================================
Adviser Class Shares:
($24,845,366 [DIVIDED BY] 24,845,499 shares outstanding).............. $ 1.00
======================================================================================================
Market Class Shares:
($218,498,847 [DIVIDED BY] 218,500,010 shares outstanding)............ $ 1.00
======================================================================================================
</TABLE>
* Aggregate cost for Federal tax purposes
+ Floating rate note. The interest rate shown reflects the rate currently in
effect.
++ Reset date. Interest rates reset either daily, weekly, monthly, quarterly or
semi-annually.
<TABLE>
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------
AT APRIL 30, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold..................... $ (1,209)
Paid-in capital....................................................... 375,203,821
- ------------------------------------------------------------------------------------------------------
NET ASSETS............................................................ $375,202,612
======================================================================================================
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 99.8%
ALABAMA -- 5.1%
Arab, Alabama, Industrial Development Board, Industrial Development
Revenue, (Syncro Corporation Project), AMT, (SouthTrust Bank of
Alabama LOC),
$1,325,000 4.750% due 06/01/02++................................................. $ 1,325,000
Foley, Alabama, Industrial Development Board, Industrial Development
Revenue, (Vulcan Inc. Project), (AmSouth Bank N.A., Birmingham LOC),
2,050,000 4.700% due 12/01/00++................................................. 2,050,000
Fort Payne, Alabama, Industrial Development Board, Industrial
Development Revenue, (Brookwood Expansion Project), (AmSouth Bank
N.A., Birmingham LOC),
700,000 4.700% due 12/01/97++................................................. 700,000
Homewood, Alabama, Educational Building Authority Revenue, Educational
Facilities, (Samford University), (Bank of Nova Scotia LOC),
6,100,000 3.800% due 12/01/21+.................................................. 6,100,000
- ----------------------------------------------------------------------------------------------------------
10,175,000
- ----------------------------------------------------------------------------------------------------------
ALASKA -- 0.9%
Valdez, Alaska, Marine Terminal Revenue, (Arco Transportation Project),
Series B, GO,
1,900,000 4.600% due 05/01/31++................................................. 1,900,000
- ----------------------------------------------------------------------------------------------------------
ARIZONA -- 1.5%
Glendale, Arizona, United High School District, No. 205, TAN, Series A,
2,000,000 4.400% due 07/31/97................................................... 2,001,922
Pinal (County of), Arizona, Industrial Development Authority, PCR,
(Magma Copper Company Project), (Banque Nationale de Paris LOC),
1,000,000 4.500% due 12/01/11++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
3,001,922
- ----------------------------------------------------------------------------------------------------------
ARKANSAS -- 1.2%
Little Rock, Arkansas, Metrocenter, Improvement District No. 1 Revenue,
(Little Rock Newspapers Inc. Project), (Bank of New York LOC),
2,300,000 4.150% due 12/01/25+.................................................. 2,300,000
- ----------------------------------------------------------------------------------------------------------
CALIFORNIA -- 3.7%
California (State of), University of California Revenue, (UCLA Medical
Center) (MBIA Insured),
1,945,000 8.000% due 12/01/97................................................... 1,992,658
Los Angeles, California, Regional Airports Improvement Corporation
Facilities Sublease Revenue, (Los Angeles International Airport),
(Societe Generale de France LOC),
1,300,000 3.950% due 12/01/25+.................................................. 1,300,000
San Bernardino (County of), California, TRAN, GO, (Toronto Dominion
Bank, Landesbank Hessen LOC),
3,000,000 4.500% due 06/30/97................................................... 3,002,967
San Diego, California, Industrial Development Revenue, (Kaiser Aerospace
and Electrical Project), Series A, AMT, (ABN-AMRO Bank LOC),
1,200,000 4.650% due 10/01/07++................................................. 1,200,000
- ----------------------------------------------------------------------------------------------------------
7,495,625
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
19
<PAGE> 22
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
COLORADO -- 4.9%
Colorado (State of), Health Facilities Authority Revenue, (Goodwill
Industries), (Bank One of Denver LOC),
$1,665,000 4.700% due 12/01/04++................................................. $ 1,665,000
Colorado (State of), Post Secondary Educational Authority, Economic
Development Revenue, (U.S. Swimming), (Banc One of Denver LOC),
1,400,000 4.700% due 06/01/11++................................................. 1,400,000
Colorado (State of), Student Obligation Authority, Student Loan Revenue,
(Student Loan Marketing Association LOC):
AMT, Series B,
2,000,000 4.500% due 07/01/20++................................................. 2,000,000
Series C,
3,600,000 4.400% due 08/01/00++................................................. 3,600,000
Larimer (County of), Colorado, Industrial Development Revenue, (Ultimate
Support System Project), Series A, (Bank One of Denver LOC),
1,150,000 4.700% due 06/01/10++................................................. 1,150,000
- ----------------------------------------------------------------------------------------------------------
9,815,000
- ----------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA -- 1.8%
District of Columbia, GO, (Georgetown University), Series D, (Bayerische
Landesbank LOC),
2,100,000 4.000% due 04/01/17++................................................. 2,100,000
District of Columbia, Hospital Revenue, (Columbia Women's Hospital),
Series A, (Bank of Tokyo; Mitsubishi Bank Ltd. LOC),
1,400,000 4.750% due 07/01/20++................................................. 1,400,000
- ----------------------------------------------------------------------------------------------------------
3,500,000
- ----------------------------------------------------------------------------------------------------------
FLORIDA -- 2.7%
Brevard (County of), Florida, Multi-family Housing Authority Revenue,
(Malabar Lakes & Park Village), Series A, (First Bank, Minneapolis
LOC),
2,575,000 4.650% due 12/01/10++................................................. 2,575,000
Fort Walton Beach, Florida, Industrial Development Revenue, (Burton Golf
Inc. Project), AMT, (Columbus Bank & Trust Company LOC),
2,000,000 4.800% due 10/01/11++................................................. 2,000,000
Orange (County of), Florida, Health Facilities Authority Revenue,
(Mayflower Retirement Community Project), (Rabobank Nederland LOC),
900,000 4.600% due 03/01/18++................................................. 900,000
- ----------------------------------------------------------------------------------------------------------
5,475,000
- ----------------------------------------------------------------------------------------------------------
GEORGIA -- 7.4%
Brunswick & Glynn (Counties of), Georgia, Development Authority,
Industrial Development Revenue, (Insteel Industries Project), (First
Union National Bank LOC),
1,313,000 4.850% due 06/01/99++................................................. 1,313,000
Clayton (County of), Georgia, Housing Authority, Multi-family Housing
Revenue: (Rolling Hills Apartments Project), (AmSouth Bank N.A.,
Birmingham LOC),
1,820,000 4.700% due 06/15/17++................................................. 1,820,000
(Ten Oaks Apartments Project), Series F, (FSA Insured), (Barclays Bank
Plc LOC),
3,370,000 4.000% due 01/01/21++................................................. 3,370,000
</TABLE>
See Notes to Financial Statements.
20
<PAGE> 23
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
GEORGIA (continued)
College Park, Georgia, Business and Industrial Development Authority,
Industrial Development Revenue, (Wynfield One Ltd Project), (Bank of
Tokyo; Mitsubishi Bank Ltd. LOC),
$1,750,000 3.850% due 12/01/16++................................................. $ 1,750,000
Crisp County-Cordelle, Georgia, Industrial Development Authority
Revenue, (Florida Seed Company Inc. Project), AMT, (SouthTrust Bank of
Alabama LOC),
1,150,000 4.850% due 12/01/10++................................................. 1,150,000
De Kalb (County of), Georgia, Housing Authority, Multi-family Housing
Revenue: (Cedar Creek Apartments Project), AMT, (General Electric
Capital Corporation Guaranty),
1,400,000 4.750% due 12/01/20++................................................. 1,400,000
(Terrace Club Project), Series A , (AmSouth Bank N.A., Birmingham LOC),
1,000,000 4.700% due 11/01/15++................................................. 1,000,000
Savannah, Georgia, Economic Development Authority, Industrial
Development Revenue, (Fuji Vegetable Oil Project), (Bank of Tokyo;
Mitsubishi Bank Ltd. LOC),
1,000,000 4.750% due 10/01/99++................................................. 1,000,000
Smyrna, Georgia, Multi-family Housing Authority Revenue, (Hills of Post
Village Project), (FNMA Collateral Agreement),
2,000,000 4.550% due 06/01/25++................................................. 2,000,000
- ----------------------------------------------------------------------------------------------------------
14,803,000
- ----------------------------------------------------------------------------------------------------------
ILLINOIS -- 10.0%
Burbank, Illinois, Industrial Development Revenue, (Service Merchandise,
Inc. Project), (Canadian Imperial Bank of Commerce LOC),
400,000 3.650% due 09/15/24++................................................. 400,000
Chicago, Illinois, O'Hare International Airport, American Airlines Inc,
Series A, (Westdeutsche Landesbank LOC),
2,500,000 3.850% due 12/01/17+.................................................. 2,500,000
Illinois (State of), Development Financial Authority Revenue, (Chicago
Symphony Orchestra):
(Bank of America Illinois LOC),
1,400,000 4.500% due 06/01/31++................................................. 1,400,000
(Northern Trust Company LOC),
2,000,000 4.500% due 12/01/28++................................................. 2,000,000
Illinois (State of), Development Financial Authority, Industrial
Development Revenue:
(Quality Screw & Nut Company Project), AMT, (National Bank of Detroit
LOC),
1,700,000 4.600% due 05/01/15++................................................. 1,700,000
(Randolph Pickle Corporation Project), AMT, (National Bank of Detroit
LOC),
800,000 4.700% due 06/01/12++................................................. 800,000
(Unique Building Corporation Project), AMT, (National Bank of Detroit
LOC),
1,400,000 4.700% due 05/01/09++................................................. 1,400,000
</TABLE>
See Notes to Financial Statements.
21
<PAGE> 24
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
ILLINOIS (continued)
Illinois (State of), Education Facilities Authority Revenue:
(Arts Club of Chicago), (Northern Trust LOC),
$3,900,000 4.500% due 01/01/26++................................................. $ 3,900,000
(Northwestern University), (NBD Bank N.A. SBPA),
1,400,000 4.550% due 12/01/25++................................................. 1,400,000
Illinois (State of), Health Facilities Authority Revenue, (Victory
Health Project):
2,000,000 3.500% due 05/22/97++................................................. 2,000,000
Health, Hospital & Nursing Home Improvements, (Streeterville Corporation
Project), Series B, (NBD Bank N.A. LOC),
1,000,000 4.500% due 08/15/23++................................................. 1,000,000
Lombard Village, Illinois, Industrial Project Revenue, B&H Partnership,
(Comerica Bank LOC),
1,500,000 4.875% due 10/01/13++................................................. 1,500,000
- ----------------------------------------------------------------------------------------------------------
20,000,000
- ----------------------------------------------------------------------------------------------------------
INDIANA -- 2.5%
Auburn, Indiana, Economic Development Revenue, (RJ Tower Corporation
Project), AMT, (Comerica Bank LOC),
1,680,000 4.250% due 09/01/00++................................................. 1,680,000
Indiana (State of), Health Facilities, Financing Authority Revenue,
(Cardinal Center), Series A, (Key Bank, N.A. LOC),
2,480,000 4.650% due 12/01/16++................................................. 2,480,000
Kendallville, Indiana, Revenue, (McCray Memorial Hospital Project), (NBD
Bank N.A. LOC),
885,000 4.650% due 01/01/04++................................................. 885,000
- ----------------------------------------------------------------------------------------------------------
5,045,000
- ----------------------------------------------------------------------------------------------------------
IOWA -- 1.5%
Iowa (State of), School Corporations, Warrant Certificates, Series A,
(FSA Insured),
3,000,000 4.750% due 06/27/97................................................... 3,003,603
- ----------------------------------------------------------------------------------------------------------
KENTUCKY -- 3.9%
Davies (County of), Kentucky, Solid Waste Disposal Facilities Revenue,
(Scott Paper Company Project), AMT, (Kimberly Clark Guaranteed):
Series A,
2,100,000 3.900% due 12/01/23+.................................................. 2,100,000
Series B,
1,700,000 3.900% due 12/01/23+.................................................. 1,700,000
Jefferson (County of), Kentucky, Industrial Building Revenue, (Seven
Counties Services Inc. Project), (Banc One LOC),
1,595,000 4.700% due 06/01/11++................................................. 1,595,000
Jefferson (County of), Kentucky, Industrial Development Revenue,
(Belknap Inc. Project), (Chemical Bank LOC),
1,228,000 3.750% due 12/01/14++................................................. 1,228,000
Jeffersontown, Kentucky, Industrial Building Revenue, (Raque Food System
Inc. Project), AMT, (PNC Bank LOC),
1,200,000 4.750% due 04/01/20++................................................. 1,200,000
- ----------------------------------------------------------------------------------------------------------
7,823,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
22
<PAGE> 25
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
LOUISIANA -- 2.3%
Lake Charles, Louisiana, (Citgo Petroleum Corporation), (Westdeutsche
Landesbank LOC),
$2,300,000 4.500% due 08/01/07++................................................. $ 2,300,000
South Louisiana, Port Community Marine Terminal Facilities Revenue,
(Occidental Petroleum), (Credit Suisse LOC),
2,300,000 4.450% due 07/01/21++................................................. 2,300,000
- ----------------------------------------------------------------------------------------------------------
4,600,000
- ----------------------------------------------------------------------------------------------------------
MARYLAND -- 1.1%
Montgomery (County of), Maryland, Industrial Development Revenue,
(Information Systems and Network Corporation Project), (PNC Bank LOC),
170,000 3.850% due 04/01/14++................................................. 170,000
Prince Georges (County of), Maryland, Housing Authority Mortgage
Revenue, (Laurel-Oxford Project), (Bankers Trust Company LOC),
2,000,000 4.625% due 10/01/07++................................................. 2,000,000
- ----------------------------------------------------------------------------------------------------------
2,170,000
- ----------------------------------------------------------------------------------------------------------
MINNESOTA -- 1.4%
Minneapolis, Minnesota, Revenue, (Catholic Charities Project), (Norwest
Bank Minnesota LOC),
2,700,000 4.550% due 11/01/16 ++................................................ 2,700,000
- ----------------------------------------------------------------------------------------------------------
MISSISSIPPI -- 1.3%
Flowood, Mississippi, Industrial Development Revenue, (BSC Steel Inc.
Project), AMT, (PNC Bank LOC),
2,500,000 4.750% due 11/01/01++................................................. 2,500,000
- ----------------------------------------------------------------------------------------------------------
MONTANA -- 0.5%
Billings, Montana, Industrial Development Revenue, (Sysco Continental
Project), (Toronto Dominion Bank LOC),
1,000,000 4.500% due 12/01/14++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
NEBRASKA -- 0.5%
Omaha, Nebraska, Auditorium Facilities Corporation Lease Revenue, (Omaha
Civic Auditorium Project),
1,095,000 3.850% due 08/15/97................................................... 1,094,511
- ----------------------------------------------------------------------------------------------------------
NEW MEXICO -- 1.9%
Dona Ana (County of), New Mexico, Industrial Development Revenue,
(Foamex Products Inc Project), (Bank of Nova Scotia LOC),
3,800,000 4.600% due 11/01/13++................................................. 3,800,000
- ----------------------------------------------------------------------------------------------------------
NORTH CAROLINA -- 0.8%
North Carolina (State of), Medical Care Community, Health Care
Facilities Revenue, (Methodist Home Project), (Branch Bank and Trust
Company LOC),
1,590,000 4.000% due 03/01/18++................................................. 1,590,000
- ----------------------------------------------------------------------------------------------------------
NORTH DAKOTA -- 0.5%
Mercer (County of), North Dakota, Solid Waste Disposal Revenue, National
Rural Utilities, (Utility Power Project), Series U, AMT, (CFC
Insured),
1,000,000 3.550% due 06/02/97................................................... 1,000,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
23
<PAGE> 26
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
OHIO -- 4.4%
Centerville, Ohio, Health Care Revenue, (Bethany Lutheran Village
Project), (PNC Bank of Ohio LOC),
$ 980,000 4.600% due 11/01/13++................................................. $ 980,000
Cuyahoga (County of), Ohio, Industrial Development Revenue, (Pleasant
Lake Project), (Key Bank, N.A. LOC),
965,000 4.650% due 05/01/11++................................................. 965,000
Greene (County of), Ohio, Industrial Development Revenue, (AFC Stamping
Project), AMT, (Key Bank, N.A. LOC),
1,000,000 3.800% due 09/01/16++................................................. 1,000,000
Ohio (State of), Housing Finance Agency, Multi-family Housing Revenue,
Kenwood Congregate Retirement Community, (Morgan Guaranty Trust
Company LOC),
2,279,000 3.350% due 12/01/05++................................................. 2,279,000
Summit (County of), Ohio, Industrial Development Revenue, (Oliver
Printing Project), AMT, (Bank One Akron LOC),
1,500,000 4.800% due 02/01/07++................................................. 1,500,000
Toledo-Lucas (County of), Ohio, Port Authority Facilities Improvement
Revenue, (Young Mens Christian Association), (Fifth Third Bank LOC)
1,095,000 4.550% due 12/01/21++................................................. 1,095,000
Trumbull (County of), Ohio, Industrial Development Revenue, (ATD
Corporation Project), AMT, (Key Bank, N.A. LOC),
925,000 4.800% due 08/01/10++................................................. 925,000
- ----------------------------------------------------------------------------------------------------------
8,744,000
- ----------------------------------------------------------------------------------------------------------
PENNSYLVANIA -- 1.1%
Schuylkill (County of), Pennsylvania, Industrial Development Authority
Revenue, (PNC Bank LOC):
(Bon-Ton Stores Project), AMT,
1,000,000 4.750% due 02/01/12++................................................. 1,000,000
(Grumbacher & Son Project),
1,240,000 4.600% due 02/01/12++................................................. 1,240,000
- ----------------------------------------------------------------------------------------------------------
2,240,000
- ----------------------------------------------------------------------------------------------------------
SOUTH CAROLINA -- 4.8%
Cherokee (County of), South Carolina, Industrial Development Revenue,
(Holmberg Electric Corporation Project), (Wachovia Bank LOC),
1,000,000 5.000% due 11/01/04++................................................. 1,000,000
Greenville (County of), South Carolina, School District,
5,000,000 4.600% due 03/01/98................................................... 5,034,310
South Carolina (State of), Jobs, Economic Development Authority Revenue:
(Chambers Oakridge Landfill), AMT, (Morgan Guaranty Trust Company
LOC),
1,700,000 4.850% due 12/01/01++................................................. 1,700,000
(Spartanburg Young Mens Project), (First Union National Bank LOC),
1,800,000 4.650% due 06/01/18++................................................. 1,800,000
- ----------------------------------------------------------------------------------------------------------
9,534,310
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
24
<PAGE> 27
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
SOUTH DAKOTA -- 0.5%
South Dakota (State of), Economic Development Finance Authority,
Industrial Development Revenue, (Lomar Development Company Project),
Series B, AMT, (First Bank LOC),
$ 930,000 4.950% due 08/01/08++................................................. $ 930,000
- ----------------------------------------------------------------------------------------------------------
TENNESSEE -- 11.9%
Chattanooga, Tennessee, Industrial Development Board, (Seaboard Farms of
Chattanooga Project), (Bank of Nova Scotia LOC),
2,000,000 4.650% due 06/01/04++................................................. 2,000,000
Jefferson City, Tennessee, Industrial Development Board, (BA Property
Project), AMT, (NBD Bank N.A. LOC),
1,000,000 4.600% due 11/01/24++................................................. 1,000,000
Jefferson (County of), Tennessee, Industrial Development Board, Economic
Development Revenue, (Ball Corporation Project), AMT, (PNC Bank LOC),
1,000,000 4.750% due 04/01/98++................................................. 1,000,000
Knoxville, Tennessee, Refunding & Improvement Revenue, GO, Series A,
(MBIA Insured),
2,505,000 3.800% due 05/01/97................................................... 2,505,000
Memphis, Tennessee, Capital Outlay Notes, GO,
1,770,000 5.000% due 07/01/97................................................... 1,773,155
Metropolitan Nashville and Davidson (County of), Tennessee:
Industrial Development Board Revenue, (Nashville Apartment Properties
#2), (SunTrust Bank LOC),
5,755,000 4.600% due 09/01/15++................................................. 5,755,000
(Vanderbilt University),
1,005,000 3.950% due 05/01/98................................................... 1,005,000
Metropolitan Nashville Airport Authority, Special Facilities Revenue,
(American Airlines Inc. Project), Series B, (Bayerische Landesbank
LOC),
7,000,000 3.950% due 10/01/12+.................................................. 7,000,000
Springfield, Tennessee, Industrial Development Board, All American Homes
of Tennessee, AMT, (NBD Bank N.A. LOC),
1,800,000 4.600% due 11/15/09++................................................. 1,800,000
- ----------------------------------------------------------------------------------------------------------
23,838,155
- ----------------------------------------------------------------------------------------------------------
TEXAS -- 7.2%
Austin (County of), Texas, Industrial Development Corporation,
Industrial Development Revenue, (Justin Industries Inc. Project),
(Citibank (New York) LOC),
1,900,000 4.500% due 12/01/14++................................................. 1,900,000
Carrollton, Texas, Independent School District, GO,
1,200,000 6.700% due 02/01/98................................................... 1,225,554
Harris (County of), Texas, Health Facilities Development Corporation,
Hospital Revenue, (St. Luke's Episcopal Hospital), Series B, (J.P.
Morgan LOC),
4,100,000 3.850% due 02/15/16+.................................................. 4,100,000
Lubbock, Texas, Health Facilities Development Corporation Revenue,
(Charter Plains Hospital), (Bankers Trust Company LOC),
2,000,000 4.700% due 10/01/13++................................................. 2,000,000
Nueces (County of), Texas, Health Facilities Development Corporation
Revenue, (Driscoll Foundation Children's Project), (Bank One of Texas
LOC),
1,200,000 4.050% due 07/01/15++................................................. 1,200,000
</TABLE>
See Notes to Financial Statements.
25
<PAGE> 28
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
TEXAS (continued)
Texas (State of), TRAN, Series A,
$3,000,000 4.750% due 08/29/97................................................... $ 3,007,586
Trinity River, Texas, Industrial Development Authority, Industrial
Development Revenue Bond, (Toys "R" Us Project), Series 1994, (Bankers
Trust Company LOC),
1,000,000 4.025% due 11/01/14++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
14,433,140
- ----------------------------------------------------------------------------------------------------------
UTAH -- 1.2%
Salt Lake City, Utah, Housing Authority, Sandy Retirement Center,
(Morgan Guaranty Trust Company, New York LOC),
1,000,000 4.500% due 01/01/09++................................................. 1,000,000
Utah (County of), Utah, Industrial Development Revenue, (McWare Inc.
Project), (AmSouth Bank N.A., Birmingham LOC),
1,380,000 4.700% due 02/01/98++................................................. 1,380,000
- ----------------------------------------------------------------------------------------------------------
2,380,000
- ----------------------------------------------------------------------------------------------------------
VIRGINIA -- 4.3%
Albemarle (County of), Virginia, Industrial Development Authority,
Health Services Revenue, (University of Virginia Services Foundation),
(First Union National Bank (North Carolina) LOC),
5,800,000 4.650% due 02/01/26++................................................. 5,800,000
Bedford (County of), Virginia, Industrial Development Revenue, (Nekoosa
Packaging Corporation Project), (Industrial Bank of Japan Ltd. LOC),
1,300,000 4.750% due 10/01/04++................................................. 1,300,000
Winchester, Virginia, Industrial Development Authority Revenue, Midwesco
Filter, (Harris Trust & Savings Bank LOC),
1,575,000 4.900% due 08/01/07++................................................. 1,575,000
- ----------------------------------------------------------------------------------------------------------
8,675,000
- ----------------------------------------------------------------------------------------------------------
WASHINGTON -- 1.5%
Port Skagit (County of), Washington, Industrial Development Authority
Revenue, (Cascade Clear Water Company Project), AMT, (Key Bank of
Washington LOC),
900,000 4.800% due 12/01/20++................................................. 900,000
Washington (State of), Motor Vehicle Fuel Tax, Series B,
2,030,000 6.500% due 07/01/97................................................... 2,038,562
- ----------------------------------------------------------------------------------------------------------
2,938,562
- ----------------------------------------------------------------------------------------------------------
WEST VIRGINIA -- 0.3%
Ohio (County of), West Virginia, Industrial Development Revenue, (Ohio
Valley Clarksburg Drug Company Project), (PNC Bank LOC),
700,000 3.800% due 12/01/01++................................................. 700,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
26
<PAGE> 29
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
WISCONSIN -- 5.2%
Howard Suamico, Wisconsin, School District, TRAN,
$1,750,000 4.400% due 08/22/97................................................... $ 1,752,082
Kenosha, Wisconsin, TRAN,
2,500,000 4.250% due 06/30/97................................................... 2,500,988
Milwaukee, Wisconsin, Industrial Development Revenue, (Mandel Company
Project), AMT, (First Bank LOC),
1,000,000 4.850% due 04/01/07++................................................. 1,000,000
Oshkosh, Wisconsin, Area School District, TRAN,
2,000,000 4.250% due 08/20/97................................................... 2,001,752
Sheboygan Falls, Wisconsin, School District, TRAN,
1,000,000 4.250% due 10/01/97................................................... 1,000,601
Sun Prairie, Wisconsin, Area School District, TRAN,
2,100,000 4.250% due 08/22/97................................................... 2,101,558
- ----------------------------------------------------------------------------------------------------------
10,356,981
- ----------------------------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (Cost $199,561,809)..................... 199,561,809
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUNDS -- 0.0%
25,000 AIM Tax-Exempt Fund..................................................... 25,000
25,000 Fidelity Institutional Tax-Exempt Cash Management Fund.................. 25,000
- ----------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $50,000)........................... 50,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $199,611,809*).......................... 99.8% 199,611,809
- -----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET).............................. 0.2%
Other assets........................................................... 1,931,632
Payable for investment securities purchased............................ (1,005,000)
Dividends payable...................................................... (420,156)
Shareholder servicing and distribution fees payable (Note 3)........... (30,802)
Investment advisory fee payable (Note 2)............................... (20,045)
Accrued Trustees' fees and expenses (Note 2)........................... (8,233)
Custodian fees payable (Note 2)........................................ (3,877)
Administration fee payable (Note 2).................................... (2,010)
Accrued expenses and other payables.................................... (79,651)
- -----------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET)............................... 361,858
- -----------------------------------------------------------------------------------------------------------
NET ASSETS...................................................... 100.0% $199,973,667
===========================================================================================================
</TABLE>
See Notes to Financial Statements.
27
<PAGE> 30
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
April 30, 1997
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- -----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($59,700,956 / 59,701,299 shares outstanding).......................... $ 1.00
===========================================================================================================
Liquidity Class Shares:
($54,676,746 / 54,677,062 shares outstanding).......................... $ 1.00
===========================================================================================================
Adviser Class Shares:
($7,296,406 / 7,296,448 shares outstanding)............................ $ 1.00
===========================================================================================================
Market Class Shares:
($78,299,559 / 78,300,010 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.
</TABLE>
Nations Municipal Reserves had the following industry concentrations greater
than 10% at April 30, 1997 (as a percentage of net assets):
<TABLE>
<S> <C>
Industrial Facilities Revenue 20.3%
Medical Facilities Revenue 12.6%
Housing Revenue 12.2%
Abbreviations:
AMT -- Alternative Minimum Tax
CFC -- Cooperative Finance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GO -- General Obligation Bonds
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
PCR -- Pollution Control Revenue
SBPA -- Standby Bond Purchase Agreement
TAN -- Tax Anticipation Notes
TRAN -- Tax and Revenue Anticipation Notes
- ----------------------------------------------------------------------------------------------------------
AT APRIL 30, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold....................... $ (1,152)
Paid-in capital......................................................... 199,974,819
- ----------------------------------------------------------------------------------------------------------
NET ASSETS.............................................................. $199,973,667
==========================================================================================================
</TABLE>
See Notes to Financial Statements.
28
<PAGE> 31
STATEMENTS OF OPERATIONS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1997
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest..................................... $90,975,530 $31,485,300 $14,895,371 $6,725,037
Dividends.................................... 3,914,065 1,182,057 178,064 145,213
- -------------------------------------------------------------------------------------------------------
Total Investment Income.................... 94,889,595 32,667,357 15,073,435 6,870,250
- -------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fee (Note 2)............. 5,155,818 1,814,290 833,883 575,179
Administration fee (Note 2).................. 1,718,606 604,764 277,961 191,727
Transfer agent fees (Note 2)................. 65,309 51,998 46,720 45,322
Custodian fees (Note 2)...................... 160,427 118,419 39,508 28,619
Trustees' fees and expenses (Note 2)......... 90,588 35,707 13,945 8,182
Registration and filing fees................. 394,416 77,667 107,202 72,230
Legal and audit fees......................... 90,254 39,839 19,186 13,904
Other........................................ 71,090 37,759 20,832 54,609
- -------------------------------------------------------------------------------------------------------
Subtotal................................... 7,746,508 2,780,443 1,359,237 989,772
Shareholder servicing and distribution fees
(Note 3):
Liquidity Class Shares..................... 280,387 58,712 9,425 48,994
Adviser Class Shares....................... 802,626 360,803 80,948 18,582
Market Class Shares........................ 589,248 304,041 627,535 311,866
Fees waived by investment adviser and
administrator.............................. (4,309,803) (1,570,212) (801,054) (605,955)
- -------------------------------------------------------------------------------------------------------
Total Expenses............................. 5,108,966 1,933,787 1,276,091 763,259
- -------------------------------------------------------------------------------------------------------
Fees reduced by credits allowed by the
custodian (Note 2)......................... -- -- (1,349) --
- -------------------------------------------------------------------------------------------------------
Net Expenses............................... 5,108,966 1,933,787 1,274,742 763,259
- -------------------------------------------------------------------------------------------------------
Net Investment Income.................... 89,780,629 30,733,570 13,798,693 6,106,991
- -------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments (Note
1)....................................... 1,459 6,649 853 --
- -------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From
Operations............................... $89,782,088 $30,740,219 $13,799,546 $6,106,991
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
29
<PAGE> 32
STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1997
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating and investing activities:
Investment income received........................................ $ 29,591,474
Dividend income received.......................................... 1,032,239
Payment of operating expenses..................................... (1,759,035)
Net proceeds from reverse repurchase agreements outstanding....... (6,278,000)
Net purchases of short-term investments........................... (328,714,953)
- -----------------------------------------------------------------------------------------------------
Cash used by operating and investing activities..................... $(306,128,275)
Cash flows from financing activities:
Proceeds from shares sold......................................... 3,297,027,733
Payments on shares redeemed....................................... (2,964,856,708)
Distributions paid*............................................... (26,195,326)
- -----------------------------------------------------------------------------------------------------
Cash provided by financing activities............................... 305,975,699
- -----------------------------------------------------------------------------------------------------
Decrease in cash.................................................... (152,576)
Cash at beginning of year........................................... 534
- -----------------------------------------------------------------------------------------------------
Cash at end of year................................................. $ (152,042)
=====================================================================================================
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS TO CASH
USED BY OPERATING AND INVESTING ACTIVITIES:
Net Increase in net assets resulting from operations................ $ 30,740,219
Increase in investments........................................... $ (331,663,401)
Decrease in payable for reverse repurchase agreement
transactions.................................................... (6,278,000)
Decrease in interest and dividends receivable..................... 898,155
Decrease in other assets.......................................... 85,279
Increase in accrued expenses and other payables................... 89,473
- -----------------------------------------------------------------------------------------------------
Cash used by operating and investing activities..................... $(306,128,275)
=====================================================================================================
</TABLE>
* Non cash activities include reinvestment of dividends of $4,164,752.
See Notes to Financial Statements.
30
<PAGE> 33
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1997
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income...................... $ 89,780,629 $ 30,733,570 $ 13,798,693 $ 6,106,991
Net realized gain on investments........... 1,459 6,649 853 --
- --------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations............................... 89,782,088 30,740,219 13,799,546 6,106,991
Distributions to shareholders from net
investment income:
Capital Class Shares................... (55,425,041) (17,377,380) (3,121,538) (2,108,862)
Liquidity Class Shares................. (9,676,471) (1,979,702) (319,759) (1,059,818)
Adviser Class Shares................... (16,293,321) (7,165,652) (1,631,142) (236,155)
Market Class Shares.................... (8,385,796) (4,210,836) (8,726,254) (2,702,156)
Net increase/(decrease) in net assets from
shares of beneficial interest
transactions (Note 4):
Capital Class Shares................... 1,076,589,010 164,627,665 67,255,105 11,218,610
Liquidity Class Shares................. 384,404,620 69,773,004 6,352,281 47,943,490
Adviser Class Shares................... (150,259,645) (21,442,722) (83,323,912) (48,215,598)
Market Class Shares.................... 333,000,010 123,400,010 218,500,010 78,300,010
- --------------------------------------------------------------------------------------------------------
Net increase in net assets................. 1,643,735,454 336,364,606 208,784,337 89,246,512
Net Assets:
Beginning of year.......................... 1,040,898,764 491,837,222 166,418,275 110,727,155
- --------------------------------------------------------------------------------------------------------
End of year................................ $2,684,634,218 $828,201,828 $375,202,612 $199,973,667
========================================================================================================
</TABLE>
See Notes to Financial Statements.
31
<PAGE> 34
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1996
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income...................... $ 28,719,705 $ 26,673,804 $ 6,892,333 $ 3,808,332
Net realized loss on investments........... (467) (21,910) (1,654) --
- --------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations............................... 28,719,238 26,651,894 6,890,679 3,808,332
Distributions to shareholders from net
investment income:
Capital Class Shares................... (20,455,385) (19,934,505) (1,507,329) (1,408,074)
Liquidity Class Shares................. (1,102,564) (145,195) (989) (144,956)
Adviser Class Shares................... (7,161,756) (6,594,104) (5,384,015) (2,255,302)
Net increase/(decrease) in net assets from
shares of beneficial interest
transactions (Note 4):
Capital Class Shares................... 473,578,788 52,659,758 58,120,309 16,129,224
Liquidity Class Shares................. 35,445,236 11,130,769 127,332 4,142,504
Adviser Class Shares................... 350,127,136 119,938,978 8,921,865 (8,611,389)
- --------------------------------------------------------------------------------------------------------
Net increase in net assets................. 859,150,693 183,707,595 67,167,852 11,660,339
Net Assets:
Beginning of year.......................... 181,748,071 308,129,627 99,250,423 99,066,816
- --------------------------------------------------------------------------------------------------------
End of year................................ $1,040,898,764 $491,837,222 $166,418,275 $110,727,155
========================================================================================================
</TABLE>
See Notes to Financial Statements.
32
<PAGE> 35
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Class Shares:
Net asset value, beginning of year... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income................ 0.0531 0.0570 0.0480 0.0283 0.0315 0.0492 0.0392
Dividends from net investment
income............................. (0.0531) (0.0570) (0.0480) (0.0283) (0.0315) (0.0492) (0.0392)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++....................... 5.44% 5.84% 4.91% 2.87% 3.19% 5.03% 7.35%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's).... $1,684,233 $607,643 $134,064 $109,852 $55,739 $100,943 $19,387
Ratio of operating expenses to
average net assets............... 0.20% 0.20% 0.29% 0.45% 0.45% 0.45% 0.45%+
Ratio of net investment income to
average net assets............... 5.32% 5.53% 4.96% 2.83% 3.15% 4.61% 7.04%+
Ratio of operating expenses to
average net assets without
waivers.......................... 0.45% 0.51% 0.52% 0.56% 0.59% 0.74% 0.79%+
Ratio of net investment income to
average net assets without
waivers.......................... 5.07% 5.22% 4.73% 2.72% 3.01% 4.32% 6.70%+
Net investment income per share
without waivers.................. $ 0.0506 $0.0538 $0.0458 $0.0272 $0.0298 $0.0455 $0.0373
===========================================================================================================================
* The Nations Cash Reserves Capital Class Shares commenced operations on October 10, 1990.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
33
<PAGE> 36
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Liquidity Class Shares:
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income................. 0.0516 0.0555 0.0471 0.0273 0.0305 0.0482 0.0197
Dividends from net investment
income.............................. (0.0516) (0.0555) (0.0471) (0.0273) (0.0305) (0.0482) (0.0197)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++........................ 5.28% 5.70% 4.81% 2.77% 3.09% 4.92% 6.44%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's)..... $419,851 $ 35,447 $ 2 $ 69,786 $ 19,411 $ 4,776 $ 10,361
Ratio of operating expenses to
average net assets................ 0.35% 0.35% 0.38% 0.55% 0.55% 0.55% 0.55%+
Ratio of net investment income to
average net assets................ 5.17% 5.38% 4.87% 2.74% 2.96% 4.94% 6.41%+
Ratio of operating expenses to
average net assets without
waivers........................... 0.60% 0.66% 0.61% 0.65% 0.68% 0.85% 0.87%+
Ratio of net investment income to
average net assets without
waivers........................... 4.92% 5.07% 4.64% 2.64% 2.82% 4.64% 6.09%+
Net investment income per share
without waivers..................... $ 0.0491 $ 0.0523 $ 0.0448 $ 0.0262 $ 0.0287 $ 0.0447 $ 0.0186
===========================================================================================================================
* The Nations Cash Reserves Liquidity Class Shares commenced operations on January 9, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
34
<PAGE> 37
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
- ----------------------------------------------------------------------------------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95*
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of year....................................... $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------------
Net investment income.................................................... 0.0506 0.0545 0.0316
Dividends from net investment income..................................... (0.0506) (0.0545) (0.0316)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of year............................................. $ 1.00 $ 1.00 $ 1.00
================================================================================================================
Total Return++........................................................... 5.19% 5.58% 3.20%
================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year (000's)........................................ $247,551 $397,809 $ 47,682
Ratio of operating expenses to average net assets...................... 0.45% 0.45% 0.54%+
Ratio of net investment income to average net assets................... 5.07% 5.28% 4.71%+
Ratio of operating expenses to average net assets without waivers...... 0.70% 0.76% 0.77%+
Ratio of net investment income to average net assets without waivers... 4.82% 4.97% 4.48%+
Net investment income per share without waivers........................ $ 0.0481 $ 0.0513 $ 0.0300
================================================================================================================
* The Nations Cash Reserves Adviser Class Shares commenced operations on September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
35
<PAGE> 38
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout the period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
- ----------------------------------------------------------------------------------------------------------------
PERIOD
ENDED
04/30/97*
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
Market Class Shares:
Net asset value, beginning of period............................................................ $ 1.00
- ----------------------------------------------------------------------------------------------------------------
Net investment income........................................................................... 0.0493
Dividends from net investment income............................................................ (0.0493)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period.................................................................. $ 1.00
================================================================================================================
Total Return++.................................................................................. 5.04%
================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)............................................................. $333,000
Ratio of operating expenses to average net assets............................................. 0.55%+
Ratio of net investment income to average net assets.......................................... 4.97%+
Ratio of operating expenses to average net assets without waivers............................. 0.80%+
Ratio of net investment income to average net assets without waivers.......................... 4.72%+
Net investment income per share without waivers............................................... $ 0.0468
================================================================================================================
</TABLE>
* The Nations Cash Reserves Market Class Shares commenced operations on May 3,
1996.
+ Annualized.
++ Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
36
<PAGE> 39
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Capital Class Shares:
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income............... 0.0519 0.0556 0.0480 0.0298 0.0323 0.0481 0.0176
Net realized gain on investments.... -- -- -- -- 0.0001 0.0003 --
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations...... 0.0519 0.0556 0.0480 0.0298 0.0324 0.0484 0.0176
- ---------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income............................ (0.0519) (0.0556) (0.0480) (0.0298) (0.0323) (0.0481) (0.0176)
Distributions from net realized
gains............................. -- -- -- -- (0.0001) (0.0003) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions................. (0.0519) (0.0556) (0.0480) (0.0298) (0.0324) (0.0484) (0.0176)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++........................ 5.30% 5.71% 4.91% 3.02% 3.29% 4.92% 5.89%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's)..... $468,975 $304,342 $251,694 $338,504 $418,644 $ 19,587 $ 4,519
Ratio of operating expenses to
average net assets................ 0.20% 0.20% 0.20% 0.20% 0.20% 0.26% 0.45%+
Ratio of net investment income to
average net assets................ 5.20% 5.50% 4.79% 2.99% 2.99% 4.39% 5.85%+
Ratio of operating expenses to
average net assets without
waivers........................... 0.46% 0.51% 0.50% 0.52% 0.72% 1.06% 0.94%+
Ratio of net investment income to
average net assets without
waivers........................... 4.94% 5.19% 4.50% 2.67% 2.48% 3.59% 5.36%+
Net investment income per share
without waivers................... $ 0.0493 $ 0.0525 $ 0.0451 $ 0.0267 $ 0.0251 $ 0.0368 $ 0.0161
===========================================================================================================================
</TABLE>
* The Nations Treasury Reserves Capital Class Shares commenced operations on
January 11, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements.
37
<PAGE> 40
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Liquidity Class Shares:
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income............... 0.0504 0.0541 0.0462 0.0263 0.0288 0.0454 0.0173
Net realized gain on investments.... -- -- -- -- 0.0001 0.0003 --
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations...... 0.0504 0.0541 0.0462 0.0263 0.0289 0.0457 0.0173
- ---------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income............................ (0.0504) (0.0541) (0.0462) (0.0263) (0.0288) (0.0454) (0.0173)
Distributions from net realized
gains............................. -- -- -- -- (0.0001) (0.0003) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions............... (0.0504) (0.0541) (0.0462) (0.0263) (0.0289) (0.0457) (0.0173)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++........................ 5.15% 5.57% 4.71% 2.67% 2.93% 4.64% 5.79%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's)..... $ 81,575 $ 11,804 $ 674 $ 14,227 $ 3,369 $ 2,807 $ 2,891
Ratio of operating expenses to
average net assets................ 0.35% 0.35% 0.49% 0.55% 0.55% 0.52% 0.55%+
Ratio of net investment income to
average net assets................ 5.05% 5.35% 4.50% 2.67% 2.89% 4.62% 5.75%+
Ratio of operating expenses to
average net assets without
waivers........................... 0.61% 0.66% 0.79% 0.87% 1.07% 1.32% 1.04%+
Ratio of net investment income to
average net assets without
waivers........................... 4.79% 5.04% 4.21% 2.35% 2.37% 3.82% 5.26%+
Net investment income per share
without waivers................... $ 0.0478 $ 0.0510 $ 0.0431 $ 0.0232 $ 0.0213 $ 0.0349 $ 0.0160
===========================================================================================================================
</TABLE>
* The Nations Treasury Reserves Liquidity Class Shares commenced operations on
January 11, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements.
38
<PAGE> 41
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -----------------------------------------------------------------------------------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95*
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of year...................................... $ 1.00 $ 1.00 $ 1.00
- -----------------------------------------------------------------------------------------------------------------
Net investment income................................................... 0.0494 0.0531 0.0308
Dividends from net investment income.................................... (0.0494) (0.0531) (0.0308)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of year............................................ $ 1.00 $ 1.00 $ 1.00
=================================================================================================================
Total Return++.......................................................... 5.06% 5.45% 3.11%
=================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year (000's)....................................... $154,256 $175,691 $ 55,762
Ratio of operating expenses to average net assets..................... 0.45% 0.45% 0.45%+
Ratio of net investment income to average net assets.................. 4.95% 5.25% 4.54%+
Ratio of operating expenses to average net assets without waivers..... 0.71% 0.76% 0.75%+
Ratio of net investment income to average net assets without 4.69% 4.94% 4.25%+
waivers.............................................................
Net investment income per share without waivers....................... $ 0.0468 $ 0.0500 $ 0.0288
=================================================================================================================
</TABLE>
* The Nations Treasury Reserves Adviser Class Shares commenced operations on
September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
See Notes to Financial Statements.
39
<PAGE> 42
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout the period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -----------------------------------------------------------------------------------------------------------------
PERIOD
ENDED
04/30/97*
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period............................................................ $ 1.00
- -----------------------------------------------------------------------------------------------------------------
Net investment income........................................................................... 0.0481
Dividends from net investment income............................................................ (0.0481)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period.................................................................. $ 1.00
=================================================================================================================
Total Return++.................................................................................. 4.92%
=================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)............................................................. $123,396
Ratio of operating expenses to average net assets............................................. 0.55%+
Ratio of net investment income to average net assets.......................................... 4.85%+
Ratio of operating expenses to average net assets without waivers............................. 0.81%+
Ratio of net investment income to average net assets without waivers.......................... 4.59%+
Net investment income per share without waivers............................................... $ 0.0455
=================================================================================================================
</TABLE>
* The Nations Treasury Reserves Market Class Shares commenced operations on May
3, 1996.
+ Annualized.
++ Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
40
<PAGE> 43
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Class Shares:
Net asset value, beginning of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income.................. 0.0520 0.0556 0.0463 0.0278 0.0312 0.0343 0.0168
Net realized gain on investments....... -- -- -- -- -- 0.0023 --
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations... 0.0520 0.0556 0.0463 0.0278 0.0312 0.0366 0.0168
- ---------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income... (0.0520) (0.0556) (0.0463) (0.0278) (0.0312) (0.0343) (0.0168)
Distributions from net realized
gains................................ -- -- -- -- -- (0.0023) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions................ (0.0520) (0.0556) (0.0463) (0.0278) (0.0312) (0.0366) (0.0168)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++........................... 5.33% 5.71% 4.72% 2.82% 3.15% 3.71% 5.57%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's)........ $ 125,377 $ 58,121 $ 2 $ 10,819 $ 7,396 $ 1,800 $ 295
Ratio of operating expenses to average
net assets........................... 0.20%(a) 0.20% 0.32% 0.45% 0.45% 0.45% 0.45%+
Ratio of net investment income to
average net assets................... 5.22% 5.48% 4.35% 2.78% 3.07% 4.24% 5.89%+
Ratio of operating expenses to average
net assets without waivers........... 0.49%(a) 0.53% 0.54% 0.51% 0.64% 0.76% 0.80%+
Ratio of net investment income to
average net assets without waivers... 4.93% 5.15% 4.13% 2.72% 2.88% 3.93% 5.54%+
Net investment income per share without
waivers.............................. $ 0.0491(a) $ 0.0523 $ 0.0439 $ 0.0272 $ 0.0288 $ 0.0313 $ 0.0158
===========================================================================================================================
* The Nations Government Reserves Capital Class Shares commenced operations on January 17, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
(a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with
and without waivers and net investment income per share was less than 0.01% and $0.01, respectively.
</TABLE>
See Notes to Financial Statements.
41
<PAGE> 44
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Liquidity Class Shares:
Net asset value, beginning of
year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income............ 0.0505 0.0537 0.0453 0.0268 0.0302 0.0461 0.0176
Net realized gain on
investments.................... -- -- -- -- -- 0.0023 --
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment
operations................... 0.0505 0.0537 0.0453 0.0268 0.0302 0.0484 0.0176
- ---------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment
income......................... (0.0505) (0.0537) (0.0453) (0.0268) (0.0302) (0.0461) (0.0176)
Distributions from net realized
gains.......................... -- -- -- -- -- (0.0023) --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions............ (0.0505) (0.0537) (0.0453) (0.0268) (0.0302) (0.0484) (0.0176)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++..................... 5.19% 5.51% 4.59% 2.71% 3.05% 4.70% 6.04%+
===========================================================================================================================
Ratios to average net
assets/supplemental data:
Net assets, end of year
(000's)........................ $ 6,482 $ 129 $ 2 $259,836 $149,252 $ 12,486 $ 5,589
Ratio of operating expenses to
average net assets............. 0.35%(a) 0.35% 0.40% 0.55% 0.55% 0.55% 0.55%+
Ratio of net investment income to
average net assets............. 5.07% 5.33% 4.27% 2.68% 2.71% 4.46% 5.86%+
Ratio of operating expenses to
average net assets without
waivers........................ 0.64%(a) 0.68% 0.62% 0.61% 0.74% 0.86% 0.94%+
Ratio of net investment income to
average net assets without
waivers........................ 4.78% 5.00% 4.05% 2.62% 2.52% 4.18% 5.47%+
Net investment income per share
without waivers................ $ 0.0476(a) $ 0.0504 $ 0.0430 $ 0.0262 $ 0.0274 $ 0.0422 $ 0.0170
===========================================================================================================================
</TABLE>
* The Nations Government Reserves Liquidity Class Shares commenced operations
on January 11, 1991.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
(a) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and net investment income
per share was less than 0.01% and $0.01, respectively.
See Notes to Financial Statements.
42
<PAGE> 45
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- ------------------------------------------------------------------------------------------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95*
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of year......................................... $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------
Net investment income...................................................... 0.0495 0.0527 0.0299
Dividends from net investment income....................................... (0.0495) (0.0527) (0.0299)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year............................................... $ 1.00 $ 1.00 $ 1.00
========================================================================================================================
Total Return++............................................................. 5.07% 5.39% 3.04%
========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year (000's).......................................... $24,845 $108,168 $ 99,246
Ratio of operating expenses to average net assets........................ 0.45%(a) 0.45% 0.57%+
Ratio of net investment income to average net assets..................... 4.97% 5.23% 4.10%+
Ratio of operating expenses to average net assets without waivers........ 0.74%(a) 0.78% 0.79%+
Ratio of net investment income to average net assets without waivers..... 4.68% 4.90% 3.88%+
Net investment income per share without waivers.......................... $0.0466 (a) $0.0494 $ 0.0283
========================================================================================================================
* The Nations Government Reserves Adviser Class Shares commenced operations on September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
(a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with
and without waivers and net investment income per share was less than 0.01% and $0.01, respectively.
</TABLE>
See Notes to Financial Statements.
43
<PAGE> 46
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout the period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- ---------------------------------------------------------------------------------------------------------------------
PERIOD
ENDED
04/30/97*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period................................................................ $ 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income............................................................................... 0.0482
Dividends from net investment income................................................................ (0.0482)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period...................................................................... $ 1.00
=====================================================================================================================
Total Return++...................................................................................... 4.93%
=====================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year period (000's)............................................................ $218,499
Ratio of operating expenses to average net assets................................................. 0.55%+(a)
Ratio of net investment income to average net assets.............................................. 4.87%+
Ratio of operating expenses to average net assets without waivers................................. 0.84%+(a)
Ratio of net investment income to average net assets without waivers.............................. 4.58%+
Net investment income per share without waivers................................................... $ 0.0453 (a)
=====================================================================================================================
* The Nations Government Reserves Market Class Shares commenced operations on May 3, 1996.
+ Annualized.
++ Total return represents aggregate total return for the period indicated.
(a) The effect of the fees reduced by credits allowed by the custodian on the operating expense ratio, with
and without waivers and net investment income per share was less than 0.01% and $0.01, respectively.
</TABLE>
See Notes to Financial Statements.
44
<PAGE> 47
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Class Shares:
Net asset value, beginning of year..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income.................. 0.0337 0.0362 0.0313 0.0198 0.0231 0.0356 0.0245
Dividends from net investment income... (0.0337) (0.0362) (0.0313) (0.0198) (0.0231) (0.0356) (0.0245)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++......................... 3.44% 3.70% 3.19% 2.00% 2.34% 3.62% 4.62%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's)...... $ 59,701 $ 48,482 $ 32,353 $ 35,698 $ 26,145 $ 18,150 $ 5,064
Ratio of operating expenses to
average net assets................. 0.20% 0.20% 0.23% 0.45% 0.45% 0.45% 0.45%+
Ratio of net investment income to
average net assets................. 3.38% 3.61% 3.36% 1.98% 2.27% 3.38% 4.70%+
Ratio of operating expenses to
average net assets without waivers
and/or expenses reimbursed......... 0.52% 0.58% 0.59% 0.58% 0.66% 0.89% 0.99%+
Ratio of net investment income to
average net assets without waivers
and/or expenses reimbursed......... 3.06% 3.23% 2.99% 1.85% 2.05% 2.94% 4.16%+
Net investment income per share
without waivers and/or expenses
reimbursed......................... $ 0.0305 $ 0.0324 $ 0.0279 $ 0.0186 $ 0.0203 $ 0.0296 $ 0.0216
===========================================================================================================================
* The Nations Municipal Reserves Capital Class Shares commenced operations on October 23, 1990.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
45
<PAGE> 48
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
---------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95 04/30/94 04/30/93 04/30/92 04/30/91*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Liquidity Class Shares:
Net asset value, beginning of year..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income.................. 0.0323 0.0347 0.0304 0.0188 0.0221 0.0346 0.0478
Dividends from net investment income... (0.0323) (0.0347) (0.0304) (0.0188) (0.0221) (0.0346) (0.0478)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++......................... 3.29% 3.52% 3.09% 1.90% 2.24% 3.52% 4.60%+
===========================================================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's)...... $ 54,677 $ 6,734 $ 2,591 $ 13,805 $ 10,766 $ 11,473 $ 8,927
Ratio of operating expenses to
average net assets................. 0.35% 0.35% 0.33% 0.55% 0.55% 0.55% 0.55%+
Ratio of net investment income to
average net assets................. 3.23% 3.46% 3.26% 1.86% 2.21% 3.36% 5.22%+
Ratio of operating expenses to
average net assets without waivers
and/or expenses reimbursed......... 0.67% 0.73% 0.69% 0.67% 0.76% 0.99% 0.81%+
Ratio of net investment income to
average net assets without waivers
and/or expenses reimbursed......... 2.91% 3.08% 2.89% 1.74% 2.00% 2.92% 4.96%+
Net investment income per share
without waivers and/or expenses
reimbursed......................... $ 0.0291 $ 0.0309 $ 0.0270 $ 0.0176 $ 0.0192 $ 0.0285 $ 0.0455
===========================================================================================================================
* The Nations Municipal Reserves Liquidity Class Shares commenced operations on June 1, 1990.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
46
<PAGE> 49
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each year.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- --------------------------------------------------------------------------------------------------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
04/30/97 04/30/96 04/30/95*
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of year............................................... $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------------
Net investment income............................................................ 0.0313 0.0337 0.0199
Dividends from net investment income............................................. (0.0313) (0.0337) (0.0199)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year..................................................... $ 1.00 $ 1.00 $ 1.00
==========================================================================================================================
Total Return++................................................................... 3.19% 3.43% 2.02%
==========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year (000's)................................................ $ 7,296 $ 55,511 $ 64,123
Ratio of operating expenses to average net assets.............................. 0.45% 0.45% 0.48%+
Ratio of net investment income to average net assets........................... 3.13% 3.36% 3.11%+
Ratio of operating expenses to average net assets without waivers and/or
expenses reimbursed.......................................................... 0.77% 0.83% 0.84%+
Ratio of net investment income to average net assets without waivers and/or
expenses reimbursed.......................................................... 2.81% 2.98% 2.74%+
Net investment income per share without waivers and/or expenses reimbursed..... $ 0.0281 $ 0.0299 $ 0.0176
==========================================================================================================================
* The Nations Municipal Reserves Adviser Class Shares commenced operations on September 22, 1994.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
47
<PAGE> 50
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout the period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- ----------------------------------------------------------------------------------------------------------------------
PERIOD
ENDED
04/30/97*
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period................................................................... $ 1.00
- ----------------------------------------------------------------------------------------------------------------------
Net investment income.................................................................................. 0.0301
Dividends from net investment income................................................................... (0.0301)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period......................................................................... $ 1.00
======================================================================================================================
Total Return++......................................................................................... 3.06%
======================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).................................................................... $ 78,300
Ratio of operating expenses to average net assets.................................................... 0.55%+
Ratio of net investment income to average net assets................................................. 3.03%+
Ratio of operating expenses to average net assets without waivers.................................... 0.87%+
Ratio of net investment income to average net assets without waivers................................. 2.71%+
Net investment income per share without waivers...................................................... $ 0.0269
======================================================================================================================
</TABLE>
* The Nations Municipal Reserves Market Class Shares commenced operations on
May 3, 1996.
+ Annualized.
++ Total return represents aggregate total return for the period indicated.
See Notes to Financial Statements.
48
<PAGE> 51
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
NATIONS INSTITUTIONAL RESERVES (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 offers four
portfolios: Nations Cash Reserves, Nations Treasury Reserves, Nations Government
Reserves and Nations Municipal Reserves (individually, a "Portfolio",
collectively, the "Portfolios"). The Portfolios currently offer four classes of
shares: Capital Class Shares, Liquidity Class Shares, Adviser Class Shares and
Market Class Shares. Matters affecting each class will be voted on exclusively
by its respective shareholders.
1. Significant Accounting Policies.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results may differ from those estimates. The following is a summary of
significant accounting policies followed by the Portfolios in the preparation of
their financial statements.
Securities Valuation -- The securities of each Portfolio are valued on the
basis of amortized cost, which approximates fair 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
premium, as long as the effect of fluctuating interest rates on the fair
market value of the instrument is not significant. Restricted securities and
other assets are valued by the investment adviser under the supervision of
the Board of Trustees.
Repurchase Agreements -- Each Portfolio may engage in repurchase agreement
transactions including joint repurchase agreement transactions in which the
Portfolios, along with other registered investment companies advised by
NationsBanc Advisers, Inc. ("NBAI"), invest their aggregate cash balances.
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.
Generally, in the event of counterparty default, the Portfolio has the right
to use the collateral to offset losses incurred. There would be a potential
loss to the Portfolio in the event the Portfolio is delayed or prevented
from exercising its right to dispose of the collateral securities, including
the risk of a possible decline in the value of the underlying securities
during the period while the Portfolio seeks to assert its right. Unless
permitted by the Securities and Exchange Commission, the Portfolio will not
enter into repurchase agreements with its investment adviser, distributor or
any of their affiliates. The Portfolio's investment adviser, acting under
the supervision of the Board of Trustees, monitors the value of the
collateral received as well as the creditworthiness of those banks and
dealers with which the Portfolios enter into repurchase agreements to
evaluate potential risks.
Reverse Repurchase Agreements -- Nations Cash Reserves, Nations Treasury
Reserves and Nations Government Reserves are authorized to enter into
reverse repurchase agreements with institutions that the Portfolios'
investment adviser has determined are credit worthy. Under a reverse
repurchase agreement, the Portfolio sells securities and agrees to
repurchase them at a mutually agreed upon date and price. At the time the
Portfolio enters into a reverse repurchase agreement, it is required to
segregate cash, U.S. Government securities or other liquid high-grade debt
obligations in an amount at least equal in value to the Portfolio'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 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.
At April 30, 1997, Nations Treasury Reserves had reverse repurchase
agreements outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount.................................................. $98,966,000
Maturity Date.................................................... 07/01/97
Market Value of Assets Sold Under Agreements..................... $98,496,223
</TABLE>
The average daily balance of reverse repurchase agreements outstanding
during the year ended April 30, 1997 was $95,404,019. Nations Cash Reserves
and Nations Government Reserves did not enter into any reverse repurchase
agreements during the year ended April 30, 1997.
49
<PAGE> 52
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
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 ended April 30, 1997, representing the
difference between interest rates on the reverse repurchase and repurchase
agreements, amounted to $141,441. Such amounts 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 calculated ratably, is
earned from the 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 classes
based upon the relative average net assets of each class of shares.
Dividends and Distributions to Shareholders -- It is the policy of each
Portfolio to declare dividends daily from net investment income and to pay
such dividends monthly. Each Portfolio will distribute net realized
short-term capital gains annually after the fiscal year in which earned or
more frequently to maintain a net asset value of $1.00 per share, unless
offset by any available capital loss carryforward. Additional distributions
of net investment income and capital gains may be made at the discretion of
the Board of Trustees in order to avoid application of the 4% non-deductible
Federal excise tax. Income distributions and capital gain distributions are
determined in accordance with Federal 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 Tax -- 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
applicable.
Expenses -- General expenses of the Trust are allocated to the relevant
Portfolios based upon relative net assets. Operating expenses directly
attributable to a class of shares are charged to such class' operations.
Expenses of each Portfolio not directly attributable to the operations of
any class of shares are prorated among the classes based on the relative
average net assets of each class of shares.
Cash Flow Information -- Cash, as used in the Statement of Cash Flows, is
the amount of cash on hand at custodian banks. The Trust issues and redeems
shares, invests in securities, and distributes 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.
2. Investment Advisory Fee, Administrative Fee and Related Party Transactions.
The Trust has, on behalf of its Portfolios, entered into an investment advisory
agreement ("Investment Advisory Agreement") with NationsBanc Advisors, Inc.
("NBAI"), a wholly-owned subsidiary of NationsBank, N.A. ("NationsBank").
Under the terms of the Investment Advisory Agreement, NBAI is entitled to
receive an advisory fee from each Portfolio equal to 0.30% on an annualized
basis, of the average daily net assets of such Portfolio.
The Trust and NBAI have entered into a sub-advisory agreement ("Sub-Advisory
Agreement") with TradeStreet Investment Associates, Inc. ("TradeStreet"), a
wholly-owned subsidiary of NationsBank. Under the terms of the Sub-Advisory
Agreement, TradeStreet is entitled to receive from NBAI a sub-advisory fee for
each Portfolio at the annual rate of 0.033% of such Portfolio's average daily
net assets.
Stephens Inc. ("Stephens") serves as the administrator of the Trust pursuant to
an administration agreement ("Administration Agreement"). First Data Investor
Services Group, Inc. ("First Data"), a wholly-owned subsidiary of First Data
Corporation, serves as the co-administrator of the Trust pursuant to a
co-administration agreement ("Co-Administration Agreement"). Pursuant to the
Administration and Co-Administration Agreements, the administrator and the
co-administrator are entitled to receive a combined fee, computed daily and paid
monthly, at the annual rate of 0.10% of average daily net assets of the
Portfolios on a combined basis.
50
<PAGE> 53
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
For the year ended April 30, 1997, Stephens earned $279,306, after fee waivers,
from the Portfolios for its administration services.
The investment adviser, sub-adviser, administrator and co-administrator may,
from time to time, reduce their fees payable by each Portfolio (either
voluntarily or pursuant to applicable state limitations). For the year ended
April 30, 1997, the investment adviser and administrator voluntarily waived the
following fees:
<TABLE>
<CAPTION>
FEES WAIVED BY FEES WAIVED BY
INVESTMENT ADVISER ADMINISTRATOR
------------------ ---------------
<S> <C> <C>
Nations Cash Reserves............................... $2,797,837 $ 1,511,966
Nations Treasury Reserves........................... 1,033,412 536,800
Nations Government Reserves......................... 556,881 244,173
Nations Municipal Reserves.......................... 437,537 168,418
</TABLE>
No officer, director or employee of NationsBank, NBAI, TradeStreet, Stephens,
First Data or any affiliate thereof, receives any compensation from the Trust
for serving as trustee, officer or employee 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 in-person board meeting,
and $500 for each telephonic board meeting attended. The Trust also reimburses
expenses incurred by the Trustees in attending such meetings.
The Portfolios' eligible Trustees may participate in a non-qualified deferred
compensation plan and retirement plan which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Portfolios' 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 participant or, if no funds are selected,
to the rate of return of Nations Treasury Fund, a fund of Nations Fund, Inc. The
expenses for the deferred compensation plan and retirement plan are included in
the "Trustees' fees and expenses" line of the Statements of Operations.
NationsBank of Texas, N.A. ("NationsBank of Texas"), acts as the custodian for
the Portfolios and, for the year ended April 30, 1997, earned $212,101 for
providing such services. On October 18, 1996, The Bank of New York ("BONY") was
appointed sub-custodian for the Portfolios. The Portfolios (except Nations
Municipal Reserves) accrue a credit on daily cash balances held at BONY. The
earnings credit is applied to the monthly custody fee. For the year ended April
30, 1997, the earnings credit was $1,349.
First Data also serves as the transfer agent for the Portfolios' shares.
NationsBank of Texas also acts as the sub-transfer agent for the Capital Class
Shares of the Portfolios and, for the year ended April 30, 1997, earned
approximately $22,655 for providing such services. Stephens acts as distributor
of the Portfolios' shares.
3. Shareholder Servicing and Distribution Plans.
The Trust has adopted a distribution plan pursuant to Rule 12b-1 under the 1940
Act for the Liquidity Class Shares ("Liquidity Class Shares Plan") and the
Market Class Shares ("Market Class Shares Plan") of the Portfolios. Under the
Liquidity Class Shares Plan, the Trust may reimburse Stephens for actual
expenses incurred by Stephens in connection with the distribution of Liquidity
Class Shares up to 0.30% of the average daily net assets of the Liquidity Class
Shares of the Portfolios. Under the Market Class Shares Plan, the Trust may
compensate or reimburse Stephens for any activities or expenses primarily
intended to result in the sale of the Market Class Shares up to 0.20% of the
average daily net assets of the Market Class Shares of the Portfolios.
Currently, the Trust is not reimbursing Stephens for any portion of such
expenses for Liquidity Class Shares and Market Class Shares. Unreimbursed
expenses incurred by Stephens in a given year may not be recovered by Stephens
in subsequent years.
In addition, the Liquidity Class Shares Plan permits the Trust to pay Stephens
an annual fee of up to 0.30% of the average daily net assets of the Liquidity
Class Shares of Nations Cash Reserves, Nations Government Reserves, and Nations
Municipal Reserves and 0.35% of the average daily net assets of the Liquidity
Class Shares of Nations Treasury Reserves. Stephens may use this fee to
compensate certain financial institutions, with which it has entered into
servicing agreements, that provide administrative and/or distribution services
to Liquidity Class Shares shareholders. Currently, the Trust is not accruing
fees pursuant to the Liquidity Class Shares Plan.
51
<PAGE> 54
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
The Trust also has adopted shareholder servicing plans ("Servicing Plans") for
the Liquidity Class Shares, Adviser Class Shares and Market Class Shares of the
Portfolios. Under the Servicing Plans, 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 Liquidity Class Shares, Adviser Class Shares and Market Class Shares.
Payments under the Servicing Plans are accrued daily and paid monthly at rates
that will not exceed 0.25%, on an annualized basis, of the average daily net
assets of the Liquidity Class Shares, Adviser Class Shares and Market Class
Shares, of the Portfolios. Fees paid pursuant to the Servicing Plans are charged
as expenses of Liquidity Class Shares, Adviser Class Shares and Market Class
Shares, respectively, as accrued.
For the year ended April 30, 1997, the effective annualized rates paid by the
Portfolios, as a percentage of average daily net assets, pursuant to the plans
are as follows:
<TABLE>
<CAPTION>
LIQUIDITY CLASS ADVISER CLASS MARKET CLASS
SHARES SHARES MARKET CLASS SHARES
SERVICING SERVICING SHARES SERVICING
PORTFOLIO PLAN PLAN PLAN PLAN
------------------------------ --------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Nations Cash Reserves......... 0.15% 0.25% 0.10% 0.25%
Nations Treasury Reserves..... 0.15% 0.25% 0.10% 0.25%
Nations Government Reserves... 0.15% 0.25% 0.10% 0.25%
Nations Municipal Reserves.... 0.15% 0.25% 0.10% 0.25%
</TABLE>
For the year ended April 30, 1997, no fees were incurred by the Portfolios
pursuant to the Liquidity Class Shares Plan.
A substantial portion of the fees paid pursuant to the plans described above are
paid to affiliates of NationsBank.
4. Shares of Beneficial Interest.
As of April 30, 1997, an unlimited number of shares without par value were
authorized for the Trust. The Trust's Declaration authorizes the Board of
Trustees to classify or reclassify any authorized, but unissued, 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>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
NATIONS CASH RESERVES:
Capital Class Shares:
Sold............................................ $ 8,400,298,782 $1,186,447,620
Issued as reinvestment of dividends............. 25,009,333 1,201,076
Redeemed........................................ (7,348,719,105) (714,069,908)
-------------- --------------
Net increase.................................... $ 1,076,589,010 $ 473,578,788
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Liquidity Class Shares:
Sold............................................ $ 4,463,041,753 $ 316,764,360
Issued as reinvestment of dividends............. 5,877,940 842,517
Redeemed........................................ (4,084,515,073) (282,161,641)
-------------- --------------
Net increase.................................... $ 384,404,620 $ 35,445,236
============== ==============
</TABLE>
52
<PAGE> 55
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
NATIONS CASH RESERVES (CONTINUED):
Adviser Class Shares:
Sold............................................ $ 1,638,783,813 $ 764,101,646
Issued as reinvestment of dividends............. 3,465,664 78,897
Redeemed........................................ (1,792,509,122) (414,053,407)
-------------- --------------
Net increase/(decrease)......................... $ (150,259,645) $ 350,127,136
============== ==============
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30,
1997*
---------------
<S> <C> <C>
Market Class Shares:
Sold............................................ $ 794,300,010
Redeemed........................................ (461,300,000)
--------------
Net increase.................................... $ 333,000,010
==============
</TABLE>
- ---------------
* The Nations Cash Reserves Market Class Shares commenced operations on May 3,
1996.
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
NATIONS TREASURY RESERVES:
Capital Class Shares:
Sold............................................ $ 1,673,872,701 $1,731,309,808
Issued as reinvestment of dividends............. 793,663 --
Redeemed........................................ (1,510,038,699) (1,678,650,050)
-------------- --------------
Net increase.................................... $ 164,627,665 $ 52,659,758
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Liquidity Class Shares:
Sold............................................ $ 553,984,269 $ 23,746,115
Issued as reinvestment of dividends............. 1,522,298 113,655
Redeemed........................................ (485,733,563) (12,729,001)
-------------- --------------
Net increase.................................... $ 69,773,004 $ 11,130,769
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Adviser Class Shares:
Sold............................................ $ 735,220,753 $ 569,065,291
Issued as reinvestment of dividends............. 1,848,791 31,406
Redeemed........................................ (758,512,266) (449,157,719)
-------------- --------------
Net increase/(decrease)......................... $ (21,442,722) $ 119,938,978
============== ==============
</TABLE>
53
<PAGE> 56
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30,
1997*
---------------
<S> <C> <C>
NATIONS TREASURY RESERVES (CONTINUED):
Market Class Shares:
Sold............................................ $ 333,950,010
Redeemed........................................ (210,550,000)
--------------
Net increase.................................... $ 123,400,010
==============
</TABLE>
- ---------------
* The Nations Treasury Reserves Market Class Shares commenced operations on May
3, 1996.
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
NATIONS GOVERNMENT RESERVES:
Capital Class Shares:
Sold............................................ $ 396,992,148 $ 154,655,322
Issued as reinvestment of dividends............. 488,093 30,543
Redeemed........................................ (330,225,136) (96,565,556)
-------------- --------------
Net increase.................................... $ 67,255,105 $ 58,120,309
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Liquidity Class Shares:
Sold............................................ $ 28,431,378 $ 346,343
Issued as reinvestment of dividends............. 311,527 989
Redeemed........................................ (22,390,624) (220,000)
-------------- --------------
Net increase.................................... $ 6,352,281 $ 127,332
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Adviser Class Shares:
Sold............................................ $ 646,626,695 $ 327,190,413
Issued as reinvestment of dividends............. 1,239,113 14,421
Redeemed........................................ (731,189,720) (318,282,969)
-------------- --------------
Net increase/(decrease)......................... $ (83,323,912) $ 8,921,865
============== ==============
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30,
1997*
---------------
<S> <C> <C>
Market Class Shares:
Sold............................................ $ 691,300,010
Redeemed........................................ (472,800,000)
--------------
Net increase.................................... $ 218,500,010
==============
</TABLE>
- ---------------
* The Nations Government Reserves Market Class Shares commenced operations on
May 3, 1996.
54
<PAGE> 57
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
NATIONS MUNICIPAL RESERVES:
Capital Class Shares:
Sold............................................ $ 188,376,816 $ 176,646,799
Redeemed........................................ (177,158,206) (160,517,575)
-------------- --------------
Net increase.................................... $ 11,218,610 $ 16,129,224
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Liquidity Class Shares:
Sold............................................ $ 456,759,834 $ 60,121,685
Issued as reinvestment of dividends............. 980,434 135,917
Redeemed........................................ (409,796,778) (56,115,098)
-------------- --------------
Net increase.................................... $ 47,943,490 $ 4,142,504
============== ==============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1997 1996
--------------- --------------
<S> <C> <C>
Adviser Class Shares:
Sold............................................ $ 60,607,746 $ 265,087,129
Issued as reinvestment of dividends............. 196,137 71
Redeemed........................................ (109,019,481) (273,698,589)
-------------- --------------
Net decrease.................................... $ (48,215,598) $ (8,611,389)
============== ==============
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30,
1997*
---------------
<S> <C> <C>
Market Class Shares:
Sold............................................ $ 339,700,010
Redeemed........................................ (261,400,000)
--------------
Net increase.................................... $ 78,300,010
==============
</TABLE>
- ---------------
* The Nations Municipal Reserves Market Class Shares commenced operations on May
3, 1996.
55
<PAGE> 58
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
5. Restricted Securities.
The following securities are illiquid and restricted as to resale and,
accordingly, are valued at fair value in good faith by or under the direction of
the Trust's Board of Trustees taking into consideration such factors as the
Board deems appropriate.
The following table shows the acquisition date, the par value, value per unit,
fair value, the percentage of Nations Cash Reserves total net assets that each
security comprises as well as the aggregate cost of each such security at April
30, 1997.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER FAIR OF COST AT
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS 04/30/97
- ----------------------------- ----------- ----------- ----- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Jackson National Life
Insurance Company:
5.650% 06/14/97++#......... 06/14/96 $50,000,000 $1.00 $50,000,000 1.9% $50,000,000
5.870% 07/01/97++.......... 01/02/97 50,000,000 1.00 50,000,000 1.9 50,000,000
New York Life Insurance
Company,
5.864% 07/01/97++.......... 10/07/96 50,000,000 1.00 50,000,000 1.9 50,000,000
Peoples Security Life
Insurance Company,
5.740% 05/01/97++#......... 05/09/96 25,000,000 1.00 25,000,000 0.9 25,000,000
</TABLE>
- ---------------
# Put Date is 10/31/97
++ Reset Date
Certain securities may be sold only pursuant to certain legal restrictions and
may be difficult to sell. No Portfolio will invest more than 10% of the value of
its net assets in securities that are illiquid.
6. Line of Credit.
The Trust participates in an uncommitted line of credit provided by BONY under a
line of credit agreement dated February 28, 1997 (the "Agreement"). Advances
under the Agreement are taken primarily for temporary or emergency purposes,
including the meeting of redemption requests that otherwise might require the
untimely disposition of securities. Under the Agreement, each Portfolio may
borrow up to the lesser of $25 million or 25% of its net assets. Interest on
borrowings is payable at the Federal Funds Rate plus 0.50% on an annualized
basis. The Agreement requires, among other things, that each participating
Portfolio maintain a ratio of no less than 4 to 1 net assets (not including
funds borrowed pursuant to the Agreement) to aggregate amount of indebtedness
pursuant to the Agreement.
At April 30, 1997, there were no loans outstanding under this Agreement. There
were no borrowings for the year ended April 30, 1997 by the Portfolios under
each agreement.
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 NBAI or
TradeStreet 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 industry, state or region.
56
<PAGE> 59
NOTES TO FINANCIAL STATEMENTS (continued) NATIONS INSTITUTIONAL RESERVES
8. Capital Loss Carryforward.
As of April 30, 1997, the Portfolios had available for Federal income tax
purposes unused capital losses as follows:
<TABLE>
<CAPTION>
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING
IN 1998 IN 2000 IN 2001 IN 2002 IN 2003 IN 2004 IN 2005
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Nations Cash Reserves................ -- $1,872 $850 $ 574 -- -- --
Nations Treasury Reserves............ -- -- -- 9,255 $3,324 -- $ 15,261
Nations Government Reserves.......... -- -- -- -- -- $1,209 --
Nations Municipal Reserves........... $ 72 -- -- -- 1,080 -- --
</TABLE>
9. Significant Concentrations.
On February 26, 1997, NationsBank Corporation's (the "Corporation") Asset
Management Group announced plans to sell its Institutional Trust, Retirement
Services and Corporate Trust businesses (collectively, the "Businesses"). The
Businesses make significant use of the Nations Funds Family of Funds (the
"Funds"), including Nations Institutional Reserves, to satisfy their clients'
investment needs. It is uncertain at this point what impact, if any, the sale of
these Businesses will have on the Portfolios and its shareholders. Currently,
however, the Adviser does not believe that a significant impact to the overall
financial condition and operating performance of the Portfolios will occur.
10. Principal Shareholders.
At April 30, 1997, one shareholder owned approximately 11% of the outstanding
shares of Nations Municipal Reserves. No other shareholder owned more than 10%
of the outstanding shares of any Portfolio.
57
<PAGE> 60
REPORT OF INDEPENDENT ACCOUNTANTS NATIONS INSTITUTIONAL RESERVES
To the Shareholders and Trustees of Nations Institutional Reserves:
In our opinion, the accompanying statements of net assets and the related
statements of operations, the statement of cash flows for Nations Treasury
Reserves, the statements of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of Nations Cash
Reserves, Nations Treasury Reserves, Nations Government Reserves and Nations
Municipal Reserves (each a series of Nations Institutional Reserves hereafter
referred to as the "Trust") at April 30, 1997, the results of each of their
operations, the cash flows for Nations Treasury Reserves, the changes in each of
their net assets and their financial highlights for the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at April
30, 1997 by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
June 18, 1997
58
<PAGE> 61
TAX INFORMATION (UNAUDITED) NATIONS INSTITUTIONAL RESERVES
For the year ended April 30, 1997, all of the distributions made from Nations
Municipal Reserves are tax-exempt for regular Federal income tax purposes. A
portion of this income may be subject to the alternative minimum tax.
59
<PAGE> 62
This report is submitted for the general information of shareholders of Nations
Institutional Reserves. This material must be preceded or accompanied by a
current Nations Institutional Reserves prospectus.
<PAGE> 63
[NATIONS FUNDS LOGO] ----------------
P.O. Box 34602 | BULK RATE |
Charlotte, NC 28234-4602 | U.S. POSTAGE |
Toll Free 1-800-982-2271 | PAID |
| N READING, MA|
| PERMIT NO. |
| 105 |
----------------
AR7 CM-96335-597
