<PAGE> 1
[NATIONS FUNDS
SEMI-ANNUAL REPORT LOGO]
[PICTURE OF BUILDINGS]
NATIONS INSTITUTIONAL RESERVES
NATIONS CASH RESERVES
NATIONS TREASURY RESERVES
NATIONS GOVERNMENT RESERVES
NATIONS MUNICIPAL RESERVES
FOR THE PERIOD ENDED OCTOBER 31, 1997
<PAGE> 2
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.
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------------------------------
NOT MAY LOSE VALUE
FDIC-
INSURED NO BANK GUARANTEE
- -------------------------------------------------------------------------------------
</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 this semi-annual financial report for the Nations
Institutional Reserves Portfolios (the "Funds"). We hope you will take a moment
to review this report. It contains important financial information regarding
your investment for the six-month period ended October 31, 1997.
LOOKING BACK -- A BOOMING ECONOMY
The economy is rolling along at an above-trend pace, with no sign of significant
inflationary pressures. In addition to low inflation, the low unemployment
environment has surprised many observers. The October employment figures
registered the lowest unemployment rate in twenty-four years (4.7 percent). Real
Gross Domestic Product (GDP) rose at a 3.5 percent annual rate in the third
quarter versus 3.3 percent in the second quarter -- nearly double the U.S.
economy's estimated growth. Consumer inflation increased at a modest 0.2 percent
in October for the fourth straight month -- a pace that could lead to the
smallest yearly increase in eleven years. Through October, the Consumer Price
Index has increased at just a 1.8 percent annual rate. If this pace continues
for the rest of the year, it would be the smallest annual increase since 1986.
We are currently experiencing the fastest growth of this decade.
LOOKING AHEAD
Recent turmoil in the world financial markets has spilled over into the U.S.
market and, notwithstanding the positive indicators mentioned above, may dampen
future U.S. economic growth. The Federal Open Market Committee (FOMC) will watch
this situation as it develops, and assess the potential impact to the economy.
As these economic and market conditions evolve, the Funds will be managed
strategically to capture relative value along the yield curve.
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>
[SIGNATURE FACSIMILE] [SIGNATURE FACSIMILE]
A. Max Walker Mark H. Williamson
President and Chairman of the Board President, NationsBanc Advisors, Inc.
</TABLE>
October 31, 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. INVESTMENTS IN MONEY MARKET FUNDS ARE
NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
1
<PAGE> 4
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 2.5%
Bankers Trust Company of New York:
$ 10,000,000 5.910%..................................................... 03/12/98 $ 9,998,970
10,000,000 6.000%..................................................... 03/24/98 9,995,325
35,000,000 5.990%..................................................... 06/25/98 34,991,351
Credit Suisse, First Boston,
20,000,000 5.800%..................................................... 10/13/98 20,000,000
Morgan Guaranty Trust Company,
30,000,000 5.965%..................................................... 06/22/98 29,993,596
- -------------------------------------------------------------------------------------------------------
Total Certificates of Deposit -- Domestic (Cost $104,979,242).. 104,979,242
- -------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- EURO -- 0.7%
(Cost $30,000,728)
Sanwa Bank Ltd., (London),
30,000,000 5.920%..................................................... 12/16/97 30,000,728
- -------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- YANKEE -- 8.7%
Bank of Tokyo Mitsubishi, (New York):
20,000,000 5.840%..................................................... 01/15/98 20,001,138
30,000,000 5.800%..................................................... 01/28/98 30,000,000
5,000,000 5.800%..................................................... 03/02/98 5,000,000
20,000,000 5.790%..................................................... 03/19/98 20,000,000
Bayerische Landesbank AG, (New York),
20,000,000 5.610%..................................................... 10/06/98 19,994,661
Deutsche Bank, (New York),
5,000,000 5.860%..................................................... 03/10/98 4,999,324
National Bank of Canada, (New York):
37,000,000 5.580%..................................................... 11/10/97 37,000,000
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 16,999,390
20,000,000 6.140%..................................................... 06/05/98 19,997,622
Societe Generale, (New York):
30,000,000 5.650%..................................................... 04/07/98 30,000,000
20,000,000 5.880%..................................................... 07/22/98 19,994,486
75,000,000 5.625%+.................................................... 09/09/98 74,959,354
25,000,000 5.625%+.................................................... 09/11/98 24,986,358
20,000,000 5.950%..................................................... 10/21/98 19,990,731
- -------------------------------------------------------------------------------------------------------
Total Certificates of Deposit -- Yankee (Cost $363,923,064).... 363,923,064
- -------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER -- 34.5%
AON Corporation:
15,000,000 Discount note.............................................. 11/14/97 14,969,992
15,000,000 Discount note.............................................. 11/17/97 14,962,800
11,073,000 Discount note.............................................. 12/08/97 11,009,952
15,000,000 Discount note.............................................. 01/08/98 14,841,900
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 5
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER (continued)
Bankers Trust Company of New York,
$ 20,000,000 Discount note.............................................. 04/08/98 $ 19,507,567
Bradford & Bingley Building Society,
16,200,000 Discount note.............................................. 03/10/98 15,876,081
Countrywide Funding Corporation:
75,000,000 Discount note.............................................. 11/12/97 74,873,271
28,086,000 Discount note.............................................. 11/17/97 28,016,971
35,000,000 Discount note.............................................. 11/19/97 34,903,050
Dynamic Funding Corporation:
43,742,000 Discount note.............................................. 11/14/97 43,651,175
30,000,000 Discount note.............................................. 11/21/97 29,906,333
19,466,000 Discount note.............................................. 12/08/97 19,352,362
12,500,000 Discount note.............................................. 12/10/97 12,423,760
20,551,000 Discount note.............................................. 01/15/98 20,306,957
General Motors Acceptance Corporation:
25,000,000 Discount note.............................................. 03/02/98 24,530,285
20,000,000 Discount note.............................................. 04/20/98 19,466,389
General Motors Corporation,
100,000,000 Discount note.............................................. 11/24/97 99,644,778
Gotham Funding Corporation:
25,000,000 Discount note.............................................. 11/05/97 24,984,583
16,893,000 Discount note.............................................. 11/07/97 16,877,374
19,895,000 Discount note.............................................. 12/02/97 19,799,918
27,721,000 Discount note.............................................. 12/04/97 27,579,969
International Securitization Corporation:
16,975,000 Discount note.............................................. 11/19/97 16,927,979
40,000,000 Discount note.............................................. 12/01/97 39,815,333
100,000,000 Discount note.............................................. 12/30/97 99,087,139
Lehman Brothers Holdings Inc.:
35,000,000 Discount note.............................................. 11/10/97 34,949,075
10,000,000 Discount note.............................................. 11/21/97 9,967,500
25,000,000 Discount note.............................................. 12/03/97 24,872,222
20,000,000 Discount note.............................................. 05/01/98 19,431,861
National Fleet Funding Corporation,
211,000,000 Discount note.............................................. 11/03/97 210,932,011
Newell Company,
40,000,000 Discount note.............................................. 11/07/97 39,963,000
ODC Capital Corporation,
37,002,000 Discount note.............................................. 11/18/97 36,905,199
Orix America, Inc.,
10,000,000 Discount note.............................................. 01/09/98 9,891,325
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 6
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER (continued)
Safeco Corporation:
$ 30,000,000 Discount note.............................................. 11/12/97 $ 29,948,667
13,000,000 Discount note.............................................. 12/03/97 12,935,867
15,000,000 Discount note.............................................. 12/10/97 14,909,487
30,000,000 Discount note.............................................. 12/10/97 29,819,300
7,500,000 Discount note.............................................. 01/23/98 7,403,513
Sumitomo Corporation of America:
25,000,000 Discount note.............................................. 11/19/97 24,928,125
24,000,000 Discount note.............................................. 12/17/97 23,827,040
22,300,000 Discount note.............................................. 12/22/97 22,123,719
25,000,000 Discount note.............................................. 01/28/98 24,656,556
63,000,000 Discount note.............................................. 02/11/98 61,994,677
Tri-Lateral Capital (USA) Inc.:
12,680,000 Discount note.............................................. 12/15/97 12,592,902
26,318,000 Discount note.............................................. 01/13/98 26,019,144
20,040,000 Discount note.............................................. 01/27/98 19,762,496
- -------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $1,441,149,604)................... 1,441,149,604
- -------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 9.4%
Bankers Trust Company of New York:
25,000,000 5.700%+.................................................... 12/12/97++ 25,001,091
20,000,000 5.690%+.................................................... 04/23/98++ 20,000,000
40,000,000 5.640%+.................................................... 08/04/98++ 39,988,358
Bear Stearns & Company, Inc.:
40,000,000 5.700%+.................................................... 06/08/98++ 40,000,000
40,000,000 5.605%+.................................................... 07/21/98++ 40,000,000
25,000,000 5.731%+.................................................... 07/21/98++ 25,000,000
International Business Machines Credit Corporation:
30,000,000 5.740%+.................................................... 11/14/97++ 30,000,000
25,000,000 5.740%+.................................................... 01/21/98++ 25,000,000
15,000,000 5.740%+.................................................... 02/12/98++ 15,000,000
Comerica Bank,
40,000,000 5.640%+.................................................... 10/06/98++ 39,992,811
Merrill Lynch & Company, Inc.:
25,000,000 5.680%+.................................................... 05/18/98++ 25,000,000
20,000,000 5.700%+.................................................... 10/29/98++ 20,000,000
PHH Corporation:
17,000,000 5.630%+.................................................... 09/25/98++ 16,994,411
30,000,000 5.700%+.................................................... 10/27/98++ 30,000,000
- -------------------------------------------------------------------------------------------------------
Total Corporate Obligations (Cost $391,976,671)................ 391,976,671
- -------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 7
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
CORPORATE OBLIGATIONS (continued)
GUARANTEED INVESTMENT CONTRACTS -- 5.4%
Jackson National Life Insurance Company:
$ 50,000,000 5.880%+#................................................... 01/02/98++ $ 50,000,000
50,000,000 5.870%+#................................................... 06/14/98++ 50,000,000
Peoples Security Life Insurance Company,
25,000,000 5.730%*+#.................................................. 05/09/98++ 25,000,000
Travelers Insurance Company:
50,000,000 5.774%..................................................... 01/14/98++ 50,000,000
50,000,000 5.727%..................................................... 01/31/98++ 50,000,000
- -------------------------------------------------------------------------------------------------------
Total Guaranteed Investment Contracts (Cost $225,000,000)........... 225,000,000
- -------------------------------------------------------------------------------------------------------
MEDIUM TERM NOTES -- 5.0%
Beta Finance Corporation Inc.,
10,000,000 5.800%..................................................... 03/03/98 10,000,000
CIT Group Holdings,
11,710,000 6.500%..................................................... 07/13/98 11,750,482
CS First Boston Inc.,
140,000,000 5.973%..................................................... 07/01/98 140,000,000
Goldman, Sachs & Company,
7,000,000 6.100%..................................................... 04/15/98 6,998,714
PHH Corporation,
39,000,000 5.986%..................................................... 08/12/98 38,995,752
- -------------------------------------------------------------------------------------------------------
Total Medium Term Notes (Cost $207,744,948)......................... 207,744,948
- -------------------------------------------------------------------------------------------------------
MUNICIPAL BOND -- 1.0% (Cost $40,000,000)
Virginia (State of), Housing Development Authority,
40,000,000 5.450%+.................................................... 01/01/46++ 40,000,000
- -------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.4%
(Cost $18,302,895)
Student Loan Marketing Association (SLMA), Note,
18,303,000 5.400%+.................................................... 02/17/98++ 18,302,895
- -------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 28.3%
Agreement with BZW,
350,000,000 5.780% dated 10/31/97 to be repurchased at $350,168,583 on 11/03/97,
collateralized by $350,000,333 Federal Farm Credit Bank, 5.600%
due 10/01/98 (value $355,362,640)................................. 350,000,000
Agreement with CS First Boston Corporation,
470,000,000 5.780% dated 10/31/97 to be repurchased at $470,226,383 on 11/03/97,
collateralized by $485,288,612 U.S. Government Agency Securities
due 11/03/97 - 06/23/25 (value $483,267,867)...................... 470,000,000
Agreement with JP Morgan,
130,000,000 5.800% dated 10/31/97 to be repurchased at $130,062,833
on 11/03/97, collateralized by $132,000,000 Qualified First Tier
Money Market Instruments, 5.800% - 5.850% due
04/30/98 - 07/28/98 (value $132,600,000).......................... 130,000,000
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS CASH RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS (continued)
Agreement with Lehman Brothers Inc.,
$230,000,000 5.800% dated 10/31/97 to be repurchased at $230,111,167
on 11/03/97, collateralized by $234,600,000 Qualified First Tier
Money Market Instruments, 5.800% - 5.850% due
12/29/97 - 10/05/98 (value $234,600,000).......................... $ 230,000,000
- -------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $1,180,000,000).............. 1,180,000,000
- -------------------------------------------------------------------------------------------------------
Shares
- -------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS -- 4.0%
83,254,548 Aim Liquid Asset Portfolio.......................................... 83,254,548
15,403,000 Aim Prime Fund...................................................... 15,403,000
70,336,000 Dreyfus Cash Management Plus Fund................................... 70,336,000
5,500 Fidelity Institutional Cash Variable Rate Fund...................... 5,500
- -------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $168,999,048)................... 168,999,048
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $4,172,076,200*)................... 99.9% $4,172,076,200
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET)......................... 0.1%
Other assets........................................................ 14,535,666
Dividends payable................................................... (7,634,259)
Investment advisory fee payable (Note 2)............................ (1,043,008)
Shareholder servicing and distribution fees payable (Note 3)........ (324,134)
Accrued Trustees' fees and expenses (Note 2)........................ (107,019)
Custodian fees payable (Note 2)..................................... (23,734)
Administration fees payable (Note 2)................................ (40,686)
Accrued expenses and other payables................................. (160,280)
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET)............................ 5,202,546
- -------------------------------------------------------------------------------------------------------
NET ASSETS................................................. 100.0% $4,177,278,746
=======================================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($2,745,060,684 / 2,745,055,704 shares outstanding)................. $ 1.00
=======================================================================================================
Liquidity Class Shares:
($429,168,575 / 429,167,797 shares outstanding)..................... $ 1.00
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
NATIONS CASH RESERVES (NOTE 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUNDS (continued)
Adviser Class Shares:
($525,048,610 / 525,047,657 shares outstanding)..................... $ 1.00
=======================================================================================================
Market Class Shares:
($478,000,877 / 478,000,010 shares outstanding)..................... $ 1.00
=======================================================================================================
* 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.
# Security subject to a demand feature which allows the Fund to put the security back to the issuer
from 7 to 180 calendar days.
- --------------------------------------------------------------------------------------------------------
AT OCTOBER 31, 1997 NET ASSETS CONSIST OF:
Accumulated net realized gain on investments sold.................... $ 7,578
Paid-in capital...................................................... 4,177,271,168
- --------------------------------------------------------------------------------------------------------
NET ASSETS........................................................... $4,177,278,746
========================================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS TREASURY RESERVES Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 11.4%
U.S. TREASURY BILLS -- 3.4%
$ 10,000,000 Discount note#............................................. 11/13/97 $ 9,982,500
15,000,000 Discount note#............................................. 01/08/98 14,849,833
10,000,000 Discount note#............................................. 02/05/98 9,858,134
- -------------------------------------------------------------------------------------------------------
34,690,467
- -------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 8.0%
15,000,000 6.125%#.................................................... 03/31/98 15,008,035
10,000,000 5.875%#.................................................... 04/30/98 10,011,324
5,000,000 8.250%#.................................................... 07/15/98 5,086,257
30,000,000 6.250%#.................................................... 07/31/98 30,122,040
10,000,000 4.750%#.................................................... 09/30/98 9,921,434
10,000,000 6.000%#.................................................... 09/30/98 10,030,389
- -------------------------------------------------------------------------------------------------------
80,179,479
- -------------------------------------------------------------------------------------------------------
Total U.S. Treasury Obligations (Cost $114,869,946).................. 114,869,946
- -------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 94.6%
REPURCHASE AGREEMENTS -- FIXED RATE -- 90.8%
250,000,000 Agreement with Bankers Trust Company, 250,000,000
5.700% dated 10/31/97 to be repurchased at $250,118,750
on 11/03/97, collateralized by $255,102,709 U.S. Government
Securities 5.625% - 10.625% due 01/08/98 - 08/15/27 (value
$254,579,050)......................................................
50,000,000 Agreement with Bear Stearns, 50,000,000
5.750% dated 10/31/97 to be repurchased at $50,023,958 on 11/03/97,
collateralized by $52,239,387 GNMA, 6.000% due 09/20/27 - 10/20/27
(value $51,989,904) ...............................................
50,000,000 Agreement with BZW, 50,000,000
5.700% dated 10/31/97 to be repurchased at $50,023,750 on 11/03/97,
collateralized by $50,000,859 U.S. Government Securities 5.000% -
13.750% due 01/31/98 - 11/15/14 (value $50,781,329)................
115,756,000 Agreement with CS First Boston Corporation, 115,756,000
Interest is payable monthly. The agreement is terminable by the
fund daily. The final maturity of the agreement is 07/01/98,
collateralized by $115,756,000, U.S. Treasury Strips, Principal
only, due 05/15/17 (value $119,823,419)##..........................
50,000,000 Agreement with Dresdner Bank Inc., 50,000,000
5.750% dated 10/31/97 to be repurchased at $50,023,958 on 11/03/97,
collateralized by $51,003,018 GNMA 6.500% - 7.000% due
03/15/26 - 10/15/26 (value $50,724,229)............................
50,000,000 Agreement with First Union Corporation, 50,000,000
5.700% dated 10/31/97 to be repurchased at $50,023,750 on 11/03/97,
collateralized by $50,520,596 U.S. Government Securities 3.625% -
11.750% due 12/31/97 - 07/15/23 (value $50,889,527)................
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS TREASURY RESERVES (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS -- FIXED RATE (continued)
$ 22,000,000 Agreement with Goldman Sachs & Company, $ 22,000,000
5.750% dated 10/31/97 to be repurchased at $22,010,542 on 11/03/97,
collateralized by $22,010,542 GNMA 7.000% due 07/15/27 (value
$22,321,354).......................................................
50,000,000 Agreement with HSBC Securities, 50,000,000
5.700% dated 10/31/97 to be repurchased at $50,023,750 on 11/03/97,
collateralized by $51,005,089 U.S. Treasury Bond, 8.125% due
08/15/19 (value $50,305,341).......................................
20,000,000 Agreement with J.P. Morgan & Company, 20,000,000
5.730% dated 10/31/97 to be repurchased at $20,009,550 on 11/03/97,
collateralized by $20,000,000 GNMA 7.000% due 05/15/27 (value
$20,282,421).......................................................
110,000,000 Agreement with J.P. Morgan & Company, 110,000,000
5.700% dated 10/31/97 to be repurchased at $110,052,250 on
11/03/97, collateralized by $110,000,230 U.S. Government
Securities, Principal only, due 05/15/04 - 11/15/21 (value
$112,200,235)......................................................
50,000,000 Agreement with Lehman Brothers Holdings Inc., 50,000,000
5.750% dated 10/31/97 to be repurchased at $50,023,958 on 11/03/97,
collateralized by $50,997,277 GNMA 7.000% - 10.000% due 04/15/10 -
07/15/27 (value $50,690,987).......................................
50,000,000 Agreement with Smith Barney & Company, 50,000,000
5.780% dated 10/31/97 to be repurchased at $50,024,083 on 11/03/97,
collateralized by $50,000,000 GNMA 5.000% - 6.875% due 10/20/25 -
10/20/27 (value $50,755,155).......................................
50,000,000 Agreement with UBS Securities, Inc., 50,000,000
5.720% dated 10/31/97 to be repurchased at $50,023,833 on 11/03/97,
collateralized by $51,000,758 GNMA 6.500% - 13.500% with various
maturities (value $50,723,692).....................................
- -------------------------------------------------------------------------------------------------------
917,756,000
- -------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- TERM -- 3.8%
38,000,000 Agreement with Morgan Stanley Group Inc., 38,000,000
5.500% dated 10/10/97 to be repurchased at $38,017,417 on 11/10/97,
collateralized by $38,414,763 GNMA 6.000% - 7.000% due
10/20/23 - 08/20/27 (value $38,971,525)............................
- -------------------------------------------------------------------------------------------------------
Total Repurchase Agreements -- Fixed Rate (Cost $955,756,000)........ 955,756,000
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Shares
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUNDS -- 5.6%
18,902,000 AIM Treasury Fund.................................................... 18,902,000
19,522,000 Dreyfus Treasury Cash Management Fund................................ 19,522,000
18,222,000 Fidelity Institutional Cash Fund..................................... 18,222,000
- -------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $56,646,000).......................... 56,646,000
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $1,127,271,946*)................... 111.6% 1,127,271,946
- -------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Value
NATIONS TREASURY RESERVES (Note 1)
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
OTHER ASSETS AND LIABILITIES (NET)......................... (11.6)%
$ 1,300,881
Other assets.........................................................
(115,756,000)
Payable for reverse repurchase agreement (Note 1)....................
(1,960,221)
Dividends payable....................................................
(147,125)
Shareholder servicing and distribution fees payable (Note 3).........
(215,197)
Investment advisory fee payable (Note 2).............................
(51,059)
Accrued Trustees' fees and expenses..................................
(24,190)
Custodian fees payable (Note 2)......................................
(9,644)
Administration fee payable (Note 2)..................................
(37,840)
Accrued expenses and other payables..................................
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET)............................. (116,900,395)
- -------------------------------------------------------------------------------------------------------
NET ASSETS................................................. 100.0% $1,010,371,551
=======================================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($206,100,023 / 206,105,875 shares outstanding)...................... $ 1.00
=======================================================================================================
Liquidity Class Shares:
($279,506,727 / 279,514,663 shares outstanding)...................... $ 1.00
=======================================================================================================
Adviser Class Shares:
($345,269,887 / 345,279,690 shares outstanding)...................... $ 1.00
=======================================================================================================
Market Class Shares:
($179,494,914 / 179,500,010 shares outstanding)...................... $ 1.00
=======================================================================================================
* Aggregate cost for Federal tax purposes.
+ Rate resets daily. The interest rate shown reflects the rate currently in effect.
# Denotes securities subject to repurchase under reverse repurchase agreements as of October 31,
1997 (Note 1).
## Security segregated as collateral for reverse repurchase agreement.
- -------------------------------------------------------------------------------------------------------
AT OCTOBER 31, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold..................... (27,840)
Paid-in capital....................................................... 1,010,399,391
- -------------------------------------------------------------------------------------------------------
NET ASSETS............................................................ $1,010,371,551
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS GOVERNMENT RESERVES Date (Note 1)
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 25.7%
FEDERAL FARM CREDIT BANK (FFCB) NOTES -- 3.1%
$ 8,000,000 5.900%................................................... 04/01/98 $ 7,992,719
6,000,000 5.700%................................................... 11/03/98 5,999,531
- ------------------------------------------------------------------------------------------------------
13,992,250
- ------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (FHLB) -- 11.9%
4,000,000 Discount note............................................ 11/07/97 3,996,380
3,000,000 Discount note............................................ 11/19/97 2,991,855
3,000,000 Discount note............................................ 01/15/98 2,966,250
Notes:
20,000,000 5.680%+.................................................. 11/01/97++ 20,000,000
5,000,000 5.625%................................................... 12/26/97 5,000,000
4,000,000 5.675%................................................... 02/12/98 3,997,971
4,000,000 6.010%................................................... 05/15/98 4,000,027
3,000,000 5.820%................................................... 06/16/98 2,999,267
3,000,000 5.900%................................................... 06/19/98 2,999,962
3,000,000 5.805%................................................... 08/20/98 4,998,750
- ------------------------------------------------------------------------------------------------------
53,950,462
- ------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -- 2.2%
5,000,000 Discount note............................................ 11/13/97 4,990,983
5,000,000 Discount note............................................ 12/17/97 4,964,989
- ------------------------------------------------------------------------------------------------------
9,955,972
- ------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) -- 4.8%
5,000,000 Discount note............................................ 12/22/97 4,961,396
5,000,000 Discount note............................................ 01/20/98 4,938,889
4,000,000 Discount note............................................ 01/29/98 3,946,847
4,000,000 Discount note............................................ 02/26/98 3,929,280
Note,
4,000,000 5.710%................................................... 06/23/98 3,996,205
- ------------------------------------------------------------------------------------------------------
21,772,617
- ------------------------------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION (SLMA) -- 3.7%
5,000,000 5.660%+.................................................. 11/04/97++ 4,999,972
8,000,000 5.550%+.................................................. 11/04/97++ 8,000,000
Note,
4,000,000 5.850%................................................... 06/10/98 3,998,305
- ------------------------------------------------------------------------------------------------------
16,998,277
- ------------------------------------------------------------------------------------------------------
116,669,578
Total U.S. Government Agency Obligations (Cost $116,669,578).........
- ------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 73.1%
REPURCHASE AGREEMENTS -- FIXED RATE -- 69.8%
112,000,000 Agreement with BZW,
5.780% dated 10/31/97 to be repurchased at $112,053,947
on 11/03/97, collateralized by $112,000,415 U.S.
Government Agency Securities, 5.250% - 6.000% due
01/02/98 - 02/15/23 (value $113,774,873)........................... 112,000,000
</TABLE>
See Notes to Financial Statements.
11
<PAGE> 14
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Maturity Value
Amount NATIONS GOVERNMENT RESERVES Date (Note 1)
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS -- FIXED RATE (continued)
$ 22,000,000 Agreement with Bear Sterns,
5.750% dated 10/31/97 to be repurchased at $22,010,542
on 11/03/97, collateralized by $23,071,501 GNMA,
6.000% - 9.000% due 04/15/11 - 09/20/27 (value
$23,193,510)........................................... $ 22,000,000
112,000,000 Agreement with CS First Boston Corporation,
5.780% dated 10/31/97 to be repurchased at $112,053,947
on 11/03/97, collateralized by $117,110,000 U.S.
Government Agency Securities due 02/05/98 - 08/03/98
(value $114,484,599)................................... 112,000,000
5,000,000 Agreement with Goldman, Sachs & Company,
5.750% dated 10/31/97 to be repurchased at $5,002,396
on 11/03/97, collateralized by $5,002,397 GNMA, 7.000%
due 05/15/27 (value $5,073,036)........................
22,000,000 Agreement with J.P. Morgan & Company, 5,000,000
5.730% dated 10/31/97 to be repurchased at $22,010,505
on 11/03/97, collateralized by $22,000,001 GNMA, 7.000%
due 05/15/27 (value $22,310,664).......................
22,000,000 Agreement with Lehman Brothers Inc., 22,000,000
5.750% dated 10/31/97 to be repurchased at $22,010,542
on 11/03/97, collateralized by $22,438,693 GNMA,
7.000% - 10.500% due 04/15/10 - 10/20/26 (value
$22,291,647)........................................... 22,000,000
22,000,000 Agreement with Smith Barney, Inc.,
5.780% dated 10/31/97 to be repurchased at $22,010,597
on 11/03/97, collateralized by $22,000,000 GNMA,
5.500% - 9.000% due 10/15/12 - 10/15/27 (value
$22,268,248)........................................... 22,000,000
- ------------------------------------------------------------------------------------------------------
317,000,000
- ------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- TERM -- 3.3%
15,000,000 Agreement with Morgan Stanley Group Inc.,
5.500% dated 10/10/97 to be repurchased at $15,071,042
on 11/10/97, collateralized by $15,182,951 GNMA, 7.000%
due 09/20/23 (value $15,398,968)....................... 15,000,000
- ------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $332,000,000)................. 332,000,000
- ------------------------------------------------------------------------------------------------------
<CAPTION>
Shares
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUND -- 2.6%
534,000 Dreyfus Treasury Cash Management Fund................................ 534,000
11,436,000 Fidelity Institutional Cash Fund..................................... 11,436,000
- ------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $11,970,000)..................... 11,970,000
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $460,639,578*)................... 101.4% 460,639,578
- ------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 15
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- ------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
OTHER ASSETS AND LIABILITIES (NET)....................... (1.4)%
Other assets......................................................... $ 1,237,511
Dividends payable.................................................... (1,217,984)
Shareholder servicing and distribution fees payable (Note 3)......... (81,401)
Investment advisory fee payable (Note 2)............................. (98,160)
Accrued Trustees' fees and expenses (Note 2)......................... (16,818)
Custodian fees payable (Note 2)...................................... (3,010)
Administration fee payable (Note 2).................................. (4,187)
Accrued expenses and other payables.................................. (6,020,901)
- ------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET)............................. (6,204,950)
- ------------------------------------------------------------------------------------------------------
NET ASSETS............................................... 100.0% $454,434,628
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($155,947,309 / 155,947,995 shares outstanding)......................
======================================================================================================
Liquidity Class Shares:
($15,561,740 / 15,561,809 shares outstanding)........................
======================================================================================================
Adviser Class Shares:
($50,426,591 / 50,426,813 shares outstanding)........................
======================================================================================================
Market Class Shares:
($232,498,988 / 232,500,009 shares outstanding)......................
======================================================================================================
</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 OCTOBER 31, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold....................
Paid-in capital......................................................
- ------------------------------------------------------------------------------------------------------
NET ASSETS...........................................................
======================================================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE> 16
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 100.2%
ALABAMA -- 4.1%
Arab, Alabama, Industrial Development Board, Industrial Development
Revenue, (Syncro Corporation Project), AMT, (SouthTrust Bank of
Alabama LOC),
$1,010,000 3.950% due 06/01/02++................................................. $ 1,010,000
Columbia, Alabama, Industrial Development Board, Pollution Control
Revenue, (Alabama Power Co. Project-Series D),
3,800,000 4.050% due 10/01/22++................................................. 3,800,000
Foley, Alabama, Industrial Development Board, Industrial Development
Revenue, (Vulcan Inc. Project), (AmSouth Bank of Alabama LOC),
2,050,000 3.700% 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 3.700% due 12/01/97++................................................. 700,000
McIntosh, Alabama, Industrial Development Board, Solid Waste Disposal
Revenue, (Ciba-Geigy Corp., Project), AMT, (Union Bank of Switzerland
LOC),
4,000,000 3.650% due 07/01/04++................................................. 4,000,000
- ----------------------------------------------------------------------------------------------------------
11,560,000
- ----------------------------------------------------------------------------------------------------------
ARIZONA -- 1.3%
Maricopa (County of), Arizona, Pollution Control Corporation PCR,
(Arizona Public Service Co-Series F), (Bank of America LOC),
2,700,000 4.000% due 05/01/29++................................................. 2,700,000
Pinal (County of), Arizona, Industrial Development Authority, PCR,
(Magma Copper Company Project), (Banque Nationale de Paris LOC),
1,000,000 3.600% due 12/01/11++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
3,700,000
- ----------------------------------------------------------------------------------------------------------
CALIFORNIA -- 2.5%
California (State of), University of California Revenue, (UCLA Medical
Center) (MBIA Insured),
1,945,000 8.000% due 12/01/97................................................... 1,951,681
California (State of), Higher Education Loan (Sallie Mae Insured),
2,000,000 4.000% due 07/01/98................................................... 2,000,000
Los Angeles, California, Regional Airports Improvement Corporation
Facilities Sublease Revenue, (Los Angeles International Airport),
(Societe Generale de France LOC),
1,900,000 4.050% due 12/01/25+.................................................. 1,900,000
San Diego, California, Industrial Development Revenue, (Kaiser Aerospace
and Electrical Project), Series A, AMT, (ABN-AMRO Bank LOC),
1,200,000 3.900% due 10/01/07++................................................. 1,200,000
- ----------------------------------------------------------------------------------------------------------
7,051,681
- ----------------------------------------------------------------------------------------------------------
COLORADO -- 3.9%
Colorado (State of), Health Facilities Authority Revenue, (Goodwill
Industries), (Bank One of Denver LOC),
1,665,000 3.700% due 12/01/04++................................................. 1,665,000
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 17
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
COLORADO (continued)
Colorado (State of), Post Secondary Educational Authority, Economic
Development Revenue, (U.S. Swimming), (Banc One of Denver LOC),
$1,340,000 3.700% due 06/01/11++................................................. $ 1,340,000
Colorado (State of), Student Obligation Authority, Student Loan Revenue,
(Student Loan Marketing Association LOC):
Series C,
3,600,000 3.600% due 08/01/00++................................................. 3,600,000
AMT, Series B,
2,000,000 3.700% due 07/01/20++................................................. 2,000,000
Larimer (County of), Colorado, Industrial Development Revenue, (Ultimate
Support System Project), Series A, (Bank One of Denver LOC),
1,095,000 3.700% due 06/01/10++................................................. 1,095,000
Pitkin (County of) Colorado, Industrial Development Revenue, (Aspen
Skiing Co., Project-Series A), (First National Bank of Chicago LOC),
1,100,000 4.000% due 04/01/16++................................................. 1,100,000
- ----------------------------------------------------------------------------------------------------------
10,800,000
- ----------------------------------------------------------------------------------------------------------
DELAWARE -- 2.8%
Delaware State, Economic Development Authority, IDR, (Star Enterprise),
(Canadian Imperial Bank LOC), AMT:
Series A,
4,800,000 3.750% due 08/01/29+.................................................. 4,800,000
Series C,
3,000,000 3.800% due 08/01/29+.................................................. 3,000,000
- ----------------------------------------------------------------------------------------------------------
7,800,000
- ----------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA -- 1.2%
District of Columbia, GO, (Georgetown University), Series D, (Bayerische
Landesbank LOC),
2,100,000 3.650% 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 3.900% due 07/01/20++................................................. 1,400,000
- ----------------------------------------------------------------------------------------------------------
3,500,000
- ----------------------------------------------------------------------------------------------------------
FLORIDA -- 6.3%
Brevard (County of), Florida, Multi-family Housing Authority Revenue,
(Malabar Lakes & Park Village), Series A, (First Bank, Minneapolis
LOC),
2,275,000 3.750% due 12/01/10++................................................. 2,275,000
Fort Walton Beach, Florida, Industrial Development Revenue, (Burton Golf
Inc. Project), AMT, (Columbus Bank & Trust Company LOC),
2,000,000 3.950% due 10/01/11++................................................. 2,000,000
Indian River (County of), Florida, Hospital District Revenue,
(Kredietbank N.V. LOC),
7,000,000 3.700% due 10/01/15++................................................. 7,000,000
Jacksonvile, Florida, Health Facilities Authority (Baptist Health
Properties Project), (Barnett Bank LOC),
2,000,000 4.200% due 06/01/20++................................................. 2,000,000
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
FLORIDA (continued)
Orange (County of), Florida, Health Facilities Authority Revenue:
(Mayflower Retirement Community Project), (Rabobank Nederland LOC),
$ 900,000 3.700% due 03/01/18++................................................. $ 900,000
(Southpoint-Multi-family), (Chase Manhattan LOC),
1,750,000 3.850% due 11/01/98++................................................. 1,750,000
Florida Housing Finance Agency (FLTF-Multi-family-Lake-RMK) (SouthTrust
Bank of Alabama LOC),
1,700,000 3.800% due 12/01/10++................................................. 1,700,000
- ----------------------------------------------------------------------------------------------------------
17,625,000
- ----------------------------------------------------------------------------------------------------------
GEORGIA -- 10.1%
Columbia (County of), Georgia, Elderly Authority, Residential Care
Facilities Revenue, (Augusta Res Ctr on Aging), SunTrust Company Bank
LOC),
4,000,000 3.700% due 01/01/21++................................................. 4,000,000
Clayton (County of), Georgia, Housing Authority, Multi-family Housing
Revenue:
(Rolling Hills Apartments Project), (AmSouth Bank N.A., Birmingham
LOC),
1,820,000 3.700% due 06/15/17++................................................. 1,820,000
(Ten Oaks Apartments Project), Series F, (FSA Insured),
(Barclays Bank Plc LOC),
3,945,000 3.650% due 01/01/21++................................................. 3,945,000
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 4.200% 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 4.000% 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 3.900% due 12/01/20++................................................. 1,400,000
(Terrace Club Project), Series A, (AmSouth Bank N.A. LOC),
1,000,000 3.700% due 11/01/15++................................................. 1,000,000
Georgia Municipal Electric Authority (ABN Amro Bank, N.V. LOC),
10,200,000 3.650% due 01/01/22++................................................. 10,200,000
Savannah, Georgia, Economic Development Authority, Industrial
Development Revenue, (Fuji Vegetable Oil Project), (Bank of Tokyo;
Mitsubishi Bank Ltd. LOC),
1,000,000 3.800% 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 3.650% due 06/01/25++................................................. 2,000,000
- ----------------------------------------------------------------------------------------------------------
28,265,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
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, (Westdeutshe Landesbank LOC),
4,700,000 4.000% due 12/01/17+.................................................. 4,700,000
Kane (County of), Illinois Revenue Bond (Glenwood School for Boys),
(Harris Trust & Savings Bank LOC),
4,500,000 3.600% due 02/21/28++................................................. 4,500,000
Illinois (State of), Development Financial Authority Revenue, (Chicago
Symphony), (Northern Trust Company LOC),
2,000,000 3.600% due 12/01/28++................................................. 2,000,000
Illinois (State of), Health Facilities Authority Revenue, (Chicago
Symphony), (Northern Trust Company SBPA), (Northwestern Memorial
Hospital),
3,000,000 4.000% due 08/15/25++................................................. 3,000,000
Illinois (State of), Development Financial Authority, Industrial
Development Revenue: (Quality Screw & Nut Company Project), AMT,
(National Bank of Detroit LOC),
1,700,000 3.750% due 05/01/15++................................................. 1,700,000
(Randolph Pickle Corporation Project), AMT, (NBD Bank N.A. LOC),
800,000 3.850% due 06/01/12++................................................. 800,000
(Unique Building Corporation Project), AMT, (NBD Bank N.A. LOC),
1,800,000 3.850% due 05/01/09++................................................. 1,800,000
Illinois (State of), Education Facilities Authority Revenue: (Arts Club
of Chicago), (Northern Trust LOC),
5,200,000 3.600% due 01/01/26++................................................. 5,200,000
(Northwestern University), (NBD Bank N.A. SBPA),
1,400,000 3.650% due 12/01/25++................................................. 1,400,000
Illinois (State of), Health Facilities Authority Revenue, (Victory
Health Project), Health, Hospital & Nursing Home Improvements,
(Streeterville Corporation Project), Series B, (NBD Bank N.A. LOC),
1,000,000 3.600% due 08/15/23++................................................. 1,000,000
Lombard Village, Illinois, Industrial Project Revenue, (B&H
Partnership), (Comerica Bank LOC),
1,500,000 4.075% due 10/01/13++................................................. 1,500,000
- ----------------------------------------------------------------------------------------------------------
28,000,000
- ----------------------------------------------------------------------------------------------------------
INDIANA -- 1.6%
Auburn, Indiana, Economic Development Revenue, (RJ Tower Corporation
Project), AMT, (Comerica Bank LOC),
1,160,000 3.900% due 09/01/00++................................................. 1,160,000
Indiana (State of), Health Facilities, Financing Authority Revenue,
(Cardinal Center), Series A, (Key Bank, N.A. LOC),
2,480,000 3.900% due 12/01/16++................................................. 2,480,000
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
INDIANA (continued)
Kendallville, Indiana, Revenue, (McCray Memorial Hospital Project), (NBD
Bank N.A. LOC),
$ 885,000 3.800% due 01/01/04++................................................. $ 885,000
- ----------------------------------------------------------------------------------------------------------
4,525,000
- ----------------------------------------------------------------------------------------------------------
KENTUCKY -- 2.0%
Lexington-Fayette Urban County Airport Corporation, Kentucky Revenue,
AMT-First Mortgage, Series A, (Credit Local de France LOC),
1,600,000 4.100% due 04/21/24+.................................................. 1,600,000
Jefferson (County of), Kentucky, Industrial Building Revenue, (Seven
Counties Services Inc. Project), (Banc One LOC),
1,520,000 3.700% due 06/01/11++................................................. 1,520,000
Jefferson (County of), Kentucky, Industrial Development Revenue,
(Belknap Inc. Project), (Chase Manhattan LOC),
1,228,000 3.700% due 12/01/14++................................................. 1,228,000
Jeffersontown, Kentucky, Industrial Building Revenue, (Rague Food System
Inc. Project), AMT, (PNC Bank LOC),
1,200,000 3.800% due 04/01/20++................................................. 1,200,000
- ----------------------------------------------------------------------------------------------------------
5,548,000
- ----------------------------------------------------------------------------------------------------------
LOUISIANA -- 1.6%
Lake Charles, Louisiana, (Citgo Petroleum Corporation), (Westdeutsche
Landesbank LOC),
2,300,000 3.650% due 08/01/07++................................................. 2,300,000
South Louisiana, Port Community Marine Terminal Facilities Revenue,
(Occidental Petroleum), (Union Bank of Switzerland LOC),
2,300,000 3.600% due 07/01/21++................................................. 2,300,000
- ----------------------------------------------------------------------------------------------------------
4,600,000
- ----------------------------------------------------------------------------------------------------------
MARYLAND -- 0.1%
Montgomery (County of), Maryland, Industrial Development Revenue,
(Information Systems and Network Corporation Project), (PNC Bank LOC),
170,000 3.800% due 04/01/14++................................................. 170,000
- ----------------------------------------------------------------------------------------------------------
MICHIGAN -- 4.2%
Dearborn, (State of), Michigan Economic Development (Mellon Bank LOC),
Corporate Revenue, (Oakbrook Common Project):
2,300,000 3.600% due 03/01/23++................................................. 2,300,000
2,900,000 3.600% due 03/01/25++................................................... 2,900,000
Michigan Municipal Bond Authority Revenue, (Series B),
5,000,000 4.500% due 07/02/98++................................................. 5,020,805
Monroe, (County of), Michigan Economic Development (Barclays Bank PLC
LOC), Corporate Ltd Obligation Revenue, (Detroit Edison, Series CC),
1,500,000 4.000% due 10/01/24++................................................. 1,500,000
- ----------------------------------------------------------------------------------------------------------
11,720,805
- ----------------------------------------------------------------------------------------------------------
MINNESOTA -- 0.9%
Minneapolis, Minnesota, Revenue, (Catholic Charities Project), (Norwest
Bank Minnesota LOC),
2,615,000 3.650% due 11/01/16++................................................. 2,615,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
MISSOURI -- 3.1%
Missouri, (State of), Health & Educational Facilities Authority
Revenue,(Washington University), Series B (Morgan Guaranty SBPA):
$1,900,000 3.650% due 09/01/10++................................................. $ 1,900,000
1,400,000 4.200% due 09/01/30++................................................... 1,400,000
Missouri, (State of), Health & Educational Facilities Authority Revenue,
(School District Advance Funding Program),
3,400,000 4.500% due 09/14/98++................................................. 3,416,968
St. Charles, (County of), Missouri Industrial Development Revenue,
(Venture Stores Inc. Project) (Bank of America LOC),
2,000,000 3.600% due 10/01/06++................................................. 2,000,000
- ----------------------------------------------------------------------------------------------------------
8,716,968
- ----------------------------------------------------------------------------------------------------------
MISSISSIPPI -- 0.9%
Flowood, Mississippi, Industrial Development Revenue, (BSC Steel Inc.
Project), AMT, (PNC Bank LOC),
2,500,000 3.800% due 11/01/01++................................................. 2,500,000
- ----------------------------------------------------------------------------------------------------------
MONTANA -- 0.4%
Billings, Montana, Industrial Development Revenue, (Sysco Continental
Project), (Toronto Dominion Bank LOC),
1,000,000 3.650% due 12/01/14++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
NEW MEXICO -- 2.1%
Dona Ana (County of), New Mexico, Industrial Development Revenue,
(Foamex Products Inc Project), (Bank of Nova Scotia LOC),
5,900,000 3.700% due 11/01/13++................................................. 5,900,000
- ----------------------------------------------------------------------------------------------------------
OHIO -- 6.1%
Centerville, Ohio, Health Care Revenue, (Bethany Lutheran Village
Project), (PNC Bank of Ohio LOC),
980,000 3.650% due 11/01/13++................................................. 980,000
Cuyahoga (County of), Ohio, Industrial Development Revenue, (Pleasant
Lake Project), (Key Bank, N.A. LOC),
935,000 3.700% due 05/01/11++................................................. 935,000
Greene (County of), Ohio, Industrial Development Revenue, (AFC Stamping
Project), AMT, (Key Bank, N.A. LOC),
1,000,000 3.850% due 09/01/16++................................................. 1,000,000
Lucas (County of), Ohio, Industrial Development Revenue, (Dynamic Dies
Inc., Project), (National City Bank LOC),
2,200,000 3.850% due 07/01/09++................................................. 2,200,000
Ohio (State of), Housing Finance Agency, Multi-family Housing Revenue,
Kenwood Congregate Retirement Community, (Morgan Guaranty Trust
Company LOC),
2,279,000 3.700% due 12/01/15++................................................. 2,279,000
Ohio (State of), Air Quality Development Authority Revenue,
Daily-Conversion 12/8/95, Series B, (Morgan (J.P.) LOC),
2,200,000 3.950% due 12/01/15++................................................. 2,200,000
Ottawa (County of), Ohio, BAN,
4,000,000 4.125% due 08/06/98++................................................. 4,007,312
</TABLE>
See Notes to Financial Statements.
19
<PAGE> 22
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
OHIO (continued)
Summit (County of), Ohio, Industrial Development Revenue, (Oliver
Printing Project), AMT, (Bank One Akron LOC),
$1,500,000 3.800% 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),
1,085,000 3.700% due 12/01/21++................................................. 1,085,000
Trumbull (County of), Ohio, Industrial Development Revenue, (ATD
Corporation Project), AMT, (Key Bank, N.A. LOC),
925,000 3.850% due 08/01/10++................................................. 925,000
- ----------------------------------------------------------------------------------------------------------
17,111,312
- ----------------------------------------------------------------------------------------------------------
OREGON -- 1.8%
Portland, Oregon, Multi-family Housing Revenue, (University Park
Apartment Project), (Bank of Boston LOC),
5,000,000 3.600% due 10/01/11 5,000,000
- ----------------------------------------------------------------------------------------------------------
PENNSYLVANIA -- 5.5%
Delaware County, Pennsylvania, Industrial Development Authority,
Pollution Control Revenue, (BP Oil Inc. Project),
4,100,000 4.000% due 12/01/09++................................................. 4,100,000
Philadelphia, Pennsylvania, School District, TRAN, (Commerzbank A.G.
LOC),
4,000,000 4.500% due 06/30/98++................................................. 4,013,331
Pennsylvania (State of), Higher Education Facilities Authority Revenue,
(Carnegie Mellon University), (UBS & Morgan Guaranty SBPA),
5,000,000 4.000% due 11/01/25++................................................. 5,000,000
Schuylkill (County of), Pennsylvania, Industrial Development Authority
Revenue, (PNC Bank LOC):
(Bon-Ton Stores Project), AMT,
1,240,000 3.650% due 02/01/12++................................................. 1,240,000
(Bon-Ton Stores Project),
1,000,000 3.800% due 02/01/12++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
15,353,331
- ----------------------------------------------------------------------------------------------------------
SOUTH CAROLINA -- 3.6%
Cherokee (County of), South Carolina, Industrial Development Revenue,
(Holmberg Electric Corporation Project), (Wachovia Bank LOC),
1,000,000 4.050% due 11/01/04++................................................. 1,000,000
Greenville (County of), South Carolina, School District,
5,000,000 4.600% due 03/01/98................................................... 5,013,544
South Carolina (State of), Jobs, Economic Development Authority Revenue:
(Chambers Oakridge Landfill), AMT, (Morgan Guaranty Trust Company
LOC),
1,700,000 3.800% due 12/01/01++................................................. 1,700,000
(Spartanburg Young Mens Project), (First Union National Bank LOC),
1,800,000 3.650% due 06/01/18++................................................. 1,800,000
York (County of), South Carolina, Pollution Control Revenue, (CFC
Guaranty),
700,000 3.700% due 09/15/14................................................... 700,000
- ----------------------------------------------------------------------------------------------------------
10,213,544
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
20
<PAGE> 23
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
SOUTH DAKOTA -- 0.3%
South Dakota (State of), Economic Development Finance Authority,
Industrial Development Revenue, (Lomar Development Company Project),
Series B, AMT, (First Bank LOC),
$ 830,000 3.950% due 08/01/08++................................................. $ 830,000
- ----------------------------------------------------------------------------------------------------------
TENNESSEE -- 3.8%
Jefferson City, Tennessee, Industrial Development Board, (BA Property
Project), AMT, (American National B&T LOC),
1,265,000 3.700% due 11/01/24++................................................. 1,265,000
Jefferson (County of), Tennessee, Industrial Development Board, Economic
Development Revenue, (Ball Corporation Project), AMT, (PNC Bank LOC),
1,000,000 3.800% due 04/01/98++................................................. 1,000,000
Metropolitan Nashville and Davidson (County of), Tennessee,
(Vanderbilt University),
1,005,000 3.950% due 05/01/98................................................... 1,005,000
Industrial Development Board Revenue, (Nashville Apartment Properties
#2), (SunTrust Bank LOC),
5,455,000 3.700% due 09/01/15++................................................. 5,455,000
Springfield, Tennessee, Industrial Development Board, All American Homes
of Tennessee, AMT, (NBD Bank N.A. LOC),
1,800,000 3.750% due 11/15/09++................................................. 1,800,000
- ----------------------------------------------------------------------------------------------------------
10,525,000
- ----------------------------------------------------------------------------------------------------------
TEXAS -- 11.1%
Angelina & Neches River Authority, Texas Industrial Development
Corporation, (Solid Waste Revenue Project), (Credit Suisse LOC),
5,200,000 4.000% due 05/01/14++................................................. 5,200,000
Austin (County of), Texas, Industrial Development Corporation,
Industrial Development Revenue, (Justin Industries Inc. Project),
(Citibank (New York) LOC),
1,900,000 3.650% due 12/01/14++................................................. 1,900,000
Carrollton, Texas, Independent School District, GO,
1,200,000 6.700% due 02/01/98................................................... 1,208,518
Grapevine, Texas, Industrial Development Corporation Revenue, (American
Airlines), (Morgan Guaranty Trust LOC):
Series A1,
700,000 4.050% due 12/01/24+.................................................. 700,000
Series A3,
600,000 4.050% due 12/01/24+.................................................. 600,000
Series A4,
2,500,000 4.050% due 12/01/24+.................................................. 2,500,000
Series B2,
1,500,000 4.050% due 12/01/24+.................................................. 1,500,000
Guadalupe-Blanco River Authority, Texas, Pollution Control Revenue,
(Central Power & Light Co. Project), (ABN Amro Bank N.V. LOC),
1,900,000 4.250% due 11/01/15+.................................................. 1,900,000
</TABLE>
See Notes to Financial Statements.
21
<PAGE> 24
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
TEXAS (continued)
Harris (County of ), Texas, Health Facilities Development Corporation
Hospital Revenue, (Methodist Hospital),
(Corporation Project), Series B, (Morgan Guaranty SBPA):
$5,900,000 4.000% due 12/01/25++................................................. $ 5,900,000
1,200,000 4.000% due 12/01/26++................................................... 1,200,000
Houston, Texas, TRAN,
5,000,000 4.500% due 06/30/98................................................... 5,020,657
Lone Star, Texas, Airport Improvement Authority, (American Airlines
DEM-B-1), (Royal Bank of Canada LOC),
1,200,000 4.050% due 12/01/14+.................................................. 1,200,000
Nueces (County of), Texas, Health Facilities Development Corporation
Revenue, (Driscoll Foundation Children's Project), (Bank One of Texas
LOC),
1,200,000 3.700% due 07/01/15++................................................. 1,200,000
Trinity River, Texas, Industrial Development Authority, Industrial
Development Revenue Bond, (Toys "R" Us Project), Series 1994, (Bankers
Trust Company LOC),
1,000,000 3.825% due 11/01/14++................................................. 1,000,000
- ----------------------------------------------------------------------------------------------------------
31,029,175
- ----------------------------------------------------------------------------------------------------------
UTAH -- 3.3%
Salt Lake (County of), Utah, Pollution Control Revenue, Service Station
Holding Project B, (British Petroleum Guaranty),
6,900,000 4.000% due 08/01/07++................................................. 6,900,000
Salt Lake City, Utah, Housing Authority, Sandy Retirement Center,
(Morgan Guaranty Trust Company, New York LOC),
1,000,000 3.650% 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 3.700% due 02/01/98++................................................. 1,380,000
- ----------------------------------------------------------------------------------------------------------
9,280,000
- ----------------------------------------------------------------------------------------------------------
VIRGINIA -- 3.1%
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 3.800% 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 3.850% due 10/01/04++................................................. 1,300,000
Winchester, Virginia, Industrial Development Authority Revenue, Midwesco
Filter, (Harris Trust & Savings Bank LOC),
1,575,000 3.900% due 08/01/07++................................................. 1,575,000
- ----------------------------------------------------------------------------------------------------------
8,675,000
- ----------------------------------------------------------------------------------------------------------
WASHINGTON -- 0.3%
Port Skagit (County of), Washington, Industrial Development Authority
Revenue, (Cascade Clear Water Company Project), AMT, (Key Bank of
Washington LOC),
900,000 3.850% due 12/01/20++................................................. 900,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
22
<PAGE> 25
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount NATIONS MUNICIPAL RESERVES (Note 1)
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES (continued)
WEST VIRGINIA -- 0.7%
Ohio (County of), West Virginia, Industrial Development Revenue, (Ohio
Valley Clarksburg Drug Company Project), (PNC Bank LOC), AMT,
$2,000,000 4.050% due 12/01/01++................................................. $ 2,000,000
- ----------------------------------------------------------------------------------------------------------
WISCONSIN -- 1.4%
Milwaukee, Wisconsin, Industrial Development Revenue, (Mandel Company
Project), AMT, (First Bank LOC),
1,000,000 3.950% due 04/01/07++................................................. 1,000,000
Waukesha, Wisconsin, School District, TRAN,
3,000,000 4.100% due 08/21/98................................................... 3,004,626
- ----------------------------------------------------------------------------------------------------------
4,004,626
- ----------------------------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (Cost $280,519,442)..................... 280,519,442
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares
- ----------------------------------------------------------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUNDS -- 0.1%
100,000 AIM Tax-Exempt Fund..................................................... 100,000
50,000 Federated Tax-Exempt Fund............................................... 50,000
125,000 Fidelity Institutional Tax-Exempt Cash Management Fund.................. 125,000
- ----------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $275,000)................................ 275,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $280,749,442*)........................ 100.3% 280,794,442
- ----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET)............................ (0.3)%
Other assets............................................................ 1,618,183
Payable for investment securities purchased............................. (1,750,000)
Dividends payable....................................................... (454,073)
Shareholder servicing and distribution fees payable (Note 3)............ (40,664)
Investment advisory fee payable (Note 2)................................ (47,274)
Accrued Trustees' fees and expenses (Note 2)............................ (9,594)
Custodian fees payable (Note 2)......................................... (2,997)
Administration fee payable (Note 2)..................................... (2,485)
Accrued expenses and other payables..................................... (31,628)
- ----------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET)................................ (720,532)
- ----------------------------------------------------------------------------------------------------------
NET ASSETS.................................................... 100.0% $280,073,910
==========================================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($71,775,218 / 71,775,513 shares outstanding)........................ $ 1.00
==========================================================================================================
Liquidity Class Shares:
($79,771,269 / 79,771,597 shares outstanding)........................ $ 1.00
==========================================================================================================
Adviser Class Shares:
($26,027,834 / 26,027,941 shares outstanding)........................ $ 1.00
==========================================================================================================
Market Class Shares:
($102,499,589 / 102,500,010 shares outstanding)...................... $ 1.00
==========================================================================================================
</TABLE>
See Notes to Financial Statements.
23
<PAGE> 26
STATEMENT OF NET ASSETS (continued) NATIONS INSTITUTIONAL RESERVES
October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- -------------------------------------------------------------------------------------------------------
<C> <S>
* 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 October 31, 1997 (as a percentage of net assets):
<TABLE>
<S> <C>
Industrial Facility Revenue 15.63%
Medical Facility Revenue 14.50%
Housing Revenue 10.82%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Abbreviations:
AMT -- Alternative Minimum Tax
BAN -- Bond Anticipation Notes
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
TRAN -- Tax and Revenue Anticipation Notes
- ----------------------------------------------------------------------------------------------------------
AT OCTOBER 31, 1997 NET ASSETS CONSIST OF:
Accumulated net realized loss on investment sold........................ $ (1,152)
Paid-in capital......................................................... 280,075,062
- ----------------------------------------------------------------------------------------------------------
NET ASSETS.............................................................. $280,073,910
==========================================================================================================
</TABLE>
See Notes to Financial Statements.
24
<PAGE> 27
STATEMENTS OF OPERATIONS NATIONS INSTITUTIONAL RESERVES
For the Six Months Ended October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest...................................... $ 89,821,982 $ 20,469,601 $10,978,219 $4,274,071
Dividends..................................... 5,456,710 928,894 294,482 64,550
- ----------------------------------------------------------------------------------------------------------
Total Investment Income..................... 95,278,692 21,398,495 11,272,701 4,338,621
- ----------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fee (Note 2).............. 4,990,271 1,151,057 604,204 340,152
Administration fee (Note 2)................... 1,663,424 383,686 201,401 113,384
Transfer agent fees (Note 2).................. 33,658 25,217 23,300 22,539
Custodian fees (Note 2)....................... 83,418 48,668 17,726 12,024
Trustees' fees and expenses (Note 2).......... 32,726 10,464 4,736 2,537
Registration and filing fees.................. 122,004 40,216 28,773 --
Legal and audit fees.......................... 46,652 16,865 8,857 6,041
Interest expense (Note 6)..................... -- -- -- 4,477
Other......................................... 37,933 54,681 5,821 18,122
- ----------------------------------------------------------------------------------------------------------
Subtotal.................................... 7,010,086 1,730,854 894,818 519,276
Shareholder servicing and distribution fees
(Note 3):
Liquidity Class Shares...................... 294,304 91,445 23,926 34,401
Adviser Class Shares........................ 516,086 264,905 44,433 32,143
Market Class Shares......................... 719,974 257,798 368,773 161,114
Fees waived by investment adviser and
administrator............................... (3,691,603) (960,849) (491,807) (288,572)
- ----------------------------------------------------------------------------------------------------------
Total Expenses.............................. 4,848,847 1,384,153 840,143 458,362
- ----------------------------------------------------------------------------------------------------------
Fees reduced by credits allowed by the
custodian (Note 2).......................... (112) (90) -- --
- ----------------------------------------------------------------------------------------------------------
Net Expenses................................ 4,848,735 1,384,063 840,143 458,362
- ----------------------------------------------------------------------------------------------------------
Net Investment Income..................... 90,429,957 20,014,432 10,432,558 3,880,259
- ----------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments (Note
1)........................................ 10,874 -- -- --
- ----------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From
Operations................................ $ 90,440,831 $ 20,014,432 $10,432,558 $3,880,259
==========================================================================================================
</TABLE>
See Notes to Financial Statements.
25
<PAGE> 28
STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES
For the Six Months Ended October 31, 1997
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating and investing activities:
Investment income received........................................ $ 18,869,791
Dividend income received.......................................... 809,679
Payment of operating expenses..................................... (1,183,156)
Net proceeds from reverse repurchase agreements outstanding....... 16,790,000
Net purchases of short-term investments........................... (196,716,655)
- -----------------------------------------------------------------------------------------------------
Cash used by operating and investing activities..................... $(161,430,341)
Cash flows from financing activities:
Proceeds from shares sold......................................... 2,907,397,639
Payments on shares redeemed....................................... (2,733,289,062)
Distributions paid*............................................... (12,525,770)
- -----------------------------------------------------------------------------------------------------
Cash used by financing activities................................... 161,582,807
- -----------------------------------------------------------------------------------------------------
Decrease in cash.................................................... 152,466
Cash at beginning of year........................................... (152,042)
- -----------------------------------------------------------------------------------------------------
Cash at end of year................................................. $ 424
=====================================================================================================
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)
Increase in payable for reverse repurchase agreement
transactions.................................................... 16,790,000
Decrease in interest and dividends receivable..................... (529,807)
Decrease in other assets.......................................... 3,730
Decrease in accrued expenses...................................... 197,177
- -----------------------------------------------------------------------------------------------------
Cash provided by operating and investing activities................. $(284,462,082)
=====================================================================================================
</TABLE>
* Non cash activities include reinvestment of dividends of $8,061,146.
See Notes to Financial Statements.
26
<PAGE> 29
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
For the Six Months Ended October 31, 1997 (unaudited)
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income................... $ 90,429,957 $ 20,014,432 $ 10,432,558 $ 3,880,259
Net realized gain on investments........ 10,874 -- -- --
- -------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations....................... 90,440,831 20,014,432 10,432,558 3,880,259
Distributions to shareholders from net
investment income:
Capital Class Shares................ (58,595,745) (7,662,592) (3,368,388) (1,164,543)
Liquidity Class Shares.............. (10,213,734) (3,093,084) (813,004) (767,824)
Adviser Class Shares................ (11,101,458) (5,550,116) (933,916) (437,338)
Market Class Shares................. (10,519,020) (3,708,640) (5,317,250) (1,510,554)
Net increase/(decrease) in net assets
from shares of beneficial interest
transactions (Note 4):
Capital Class Shares................ 1,060,821,013 (262,885,729) 30,570,570 12,074,214
Liquidity Class Shares.............. 9,315,875 197,936,687 9,080,133 25,094,535
Adviser Class Shares................ 277,496,766 191,018,765 25,581,314 18,731,493
Market Class Shares................. 145,000,000 56,100,000 13,999,999 24,200,001
- -------------------------------------------------------------------------------------------------------
Net increase in net assets.............. 1,492,644,528 182,169,723 79,232,016 80,100,243
Net Assets:
Beginning of year....................... 2,684,634,218 828,201,828 375,202,612 199,973,667
- -------------------------------------------------------------------------------------------------------
End of period........................... $4,177,278,746 $1,010,371,551 $454,434,628 $280,073,910
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
27
<PAGE> 30
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.
28
<PAGE> 31
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
-----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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
period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Net investment
income.............. 0.0279 0.0531 0.0570 0.0480 0.0283 0.0315 0.0492 0.0392
Dividends from net
investment income... (0.0279) (0.0531) (0.0570) (0.0480) (0.0283) (0.0315) (0.0492) (0.0392)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++....... 2.82% 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
period (000's).... $2,745,061 $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%+(a) 0.20% 0.20% 0.29% 0.45% 0.45% 0.45% 0.45%+
Ratio of net
investment income
to average net
assets............ 5.53%+ 5.32% 5.53% 4.96% 2.83% 3.15% 4.61% 7.04%+
Ratio of operating
expenses to
average net assets
without waivers... 0.42%+(a) 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........... 5.31%+ 5.07% 5.22% 4.73% 2.72% 3.01% 4.32% 6.70%+
Net investment
income per share
without waivers... $ 0.0268 (a) $ 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.
(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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
29
<PAGE> 32
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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 period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Net investment
income................ 0.0271 0.0516 0.0555 0.0471 0.0273 0.0305 0.0482 0.0197
Dividends from net
investment income..... (0.0271) (0.0516) (0.0555) (0.0471) (0.0273) (0.0305) (0.0482) (0.0197)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++......... 2.74% 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
period (000's)...... $ 429,169 $419,851 $35,447 $ 2 $ 69,786 $ 19,411 $ 4,776 $ 10,361
Ratio of operating
expenses to average
net assets.......... 0.35%+(a) 0.35% 0.35% 0.38% 0.55% 0.55% 0.55% 0.55%+
Ratio of net
investment income to
average net
assets.............. 5.38%+ 5.17% 5.38% 4.87% 2.74% 2.96% 4.94% 6.41%+
Ratio of operating
expenses to average
net assets without
waivers............. 0.57%+(a) 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..... 5.16%+ 4.92% 5.07% 4.64% 2.64% 2.82% 4.64% 6.09%+
Net investment income
per share without
waivers............. $ 0.0260(a) $ 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.
(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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
30
<PAGE> 33
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
- ---------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED
(UNAUDITED) 04/30/97 04/30/96 04/30/95*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income........................................ 0.0266 0.0506 0.0545 0.0316
Dividends from net investment income......................... (0.0266) (0.0506) (0.0545) (0.0316)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++............................................... 2.69% 5.19% 5.58% 3.20%
===========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).......................... $525,049 $247,551 $397,809 $ 47,682
Ratio of operating expenses to average net assets.......... 0.45%+(a) 0.45% 0.45% 0.54% +
Ratio of net investment income to average net assets....... 5.28%+ 5.07% 5.28% 4.71%+
Ratio of operating expenses to average net assets
without waivers.......................................... 0.67%+(a) 0.70% 0.76% 0.77%+
Ratio of net investment income to average net assets
without waivers.......................................... 5.06%+ 4.82% 4.97% 4.48%+
Net investment income per share without waivers............ $ 0.0255(a) $ 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.
(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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
31
<PAGE> 34
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS CASH RESERVES
- -------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
10/31/97 ENDED
(UNAUDITED) 04/30/97*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period.................................................... $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------
Net investment income................................................................... 0.0261 0.0493
Dividends from net investment income.................................................... (0.0261) (0.0493)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period.......................................................... $ 1.00 $ 1.00
=========================================================================================================================
Total Return++.......................................................................... 2.64% 5.04%
=========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)..................................................... $478,001 $333,000
Ratio of operating expenses to average net assets..................................... 0.55%+(a) 0.55%+
Ratio of net investment income to average net assets.................................. 5.18%+ 4.97%+
Ratio of operating expenses to average net assets without waivers..................... 0.77%+(a) 0.80%+
Ratio of net investment income to average net assets without waivers.................. 4.96%+ 4.72%+
Net investment income per share without waivers....................................... $ 0.0250(a) $ 0.0468
=========================================================================================================================
* The Nations Cash Reserves Market Class Shares commenced operations on May 3, 1996.
+ 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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
32
<PAGE> 35
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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 period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income..... 0.0271 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............... 0.0271 0.0519 0.0556 0.0480 0.0298 0.0324 0.0484 0.0176
- -------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends from net
investment income...... (0.0271) (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...... (0.0271) (0.0519) (0.0556) (0.0480) (0.0298) (0.0324) (0.0484) (0.0176)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++............ 2.74% 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 period
(000's)................ $ 206,100 $468,975 $304,342 $251,694 $338,504 $418,644 $ 19,587 $ 4,519
Ratio of operating
expenses to average net
assets................. 0.20%+(a) 0.20% 0.20% 0.20% 0.20% 0.20% 0.26% 0.45%+
Ratio of net investment
income to average net
assets................. 5.38%+ 5.20% 5.50% 4.79% 2.99% 2.99% 4.39% 5.85%+
Ratio of operating
expenses to average net
assets without
waivers................ 0.45%+(a) 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................ 5.13%+ 4.94% 5.19% 4.50% 2.67% 2.48% 3.59% 5.36%+
Net investment income per
share without
waivers................ $ 0.0300(a) $ 0.0493 $ 0.0525 $ 0.0451 $ 0.0267 $ 0.0251 $ 0.0368 $ 0.0161
===============================================================================================================================
* The Nations Treasury Reserves Capital 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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
33
<PAGE> 36
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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 period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income.... 0.0263 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........... 0.0263 0.0504 0.0541 0.0462 0.0263 0.0289 0.0457 0.0173
- -------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends from net
investment income...... (0.0263) (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.... (0.0263) (0.0504) (0.0541) (0.0462) (0.0263) (0.0289) (0.0457) (0.0173)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++............ 2.66% 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 period
(000's)................ $ 279,507 $ 81,575 $ 11,804 $ 674 $ 14,227 $ 3,369 $ 2,807 $ 2,891
Ratio of operating
expenses to average net
assets................. 0.35%+(a) 0.35% 0.35% 0.49% 0.55% 0.55% 0.52% 0.55%+
Ratio of net investment
income to average net
assets................. 5.23%+ 5.05% 5.35% 4.50% 2.67% 2.89% 4.62% 5.75%+
Ratio of operating
expenses to average net
assets without
waivers................ 0.60%+(a) 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................ 4.98%+ 4.79% 5.04% 4.21% 2.35% 2.37% 3.82% 5.26%+
Net investment income per
share without
waivers................ $ 0.0345(a) $ 0.0478 $ 0.0510 $ 0.0431 $ 0.0232 $ 0.0213 $ 0.0349 $ 0.0160
===============================================================================================================================
* The Nations Treasury 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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
34
<PAGE> 37
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- -------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAD YEAR PERIOD
10/31/97 ENDED ENDED ENDED
(UNAUDITED) 04/30/97 04/30/96 04/30/95*
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------
Net investment income....................................... 0.0259 0.0494 0.0531 0.0308
Dividends from net investment income........................ (0.0259) (0.0494) (0.0531) (0.0308)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
===================================================================================================================
Total Return++.............................................. 2.62% 5.06% 5.45% 3.11%
===================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)......................... $ 345,270 $154,256 $175,691 $ 55,762
Ratio of operating expenses to average net assets......... 0.45%+(a) 0.45% 0.45% 0.45% +
Ratio of net investment income to average net assets...... 5.13%+ 4.95% 5.25% 4.54%+
Ratio of operating expenses to average net assets without
waivers................................................. 0.70%+(a) 0.71% 0.76% 0.75%+
Ratio of net investment income to average net assets
without waivers......................................... 4.88%+ 4.69% 4.94% 4.25%+
Net investment income per share without waivers........... $ 0.0286(a) $ 0.0468 $ 0.0500 $ 0.0288
===================================================================================================================
* The Nations Treasury 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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
35
<PAGE> 38
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- ------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
10/31/97 ENDED
(UNAUDITED) 04/30/97*
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period............................................. $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------
Net investment income............................................................ 0.0254 0.0481
Dividends from net investment income............................................. (0.0254) (0.0481)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period................................................... $ 1.00 $ 1.00
==================================================================================================================
Total Return++................................................................... 2.57% 4.92%
==================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).............................................. $ 179,495 $123,396
Ratio of operating expenses to average net assets.............................. 0.55%+(a) 0.55%+
Ratio of net investment income to average net assets........................... 5.03%+ 4.85%+
Ratio of operating expenses to average net assets without waivers.............. 0.80%+(a) 0.81%+
Ratio of net investment income to average net assets without waivers........... 4.78%+ 4.59%+
Net investment income per share without waivers................................ $ 0.0280(a) $ 0.0455
==================================================================================================================
* The Nations Treasury Reserves Market Class Shares commenced operations on May 3, 1996.
+ 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 $0.0001, respectively.
</TABLE>
See Notes to Financial Statements.
36
<PAGE> 39
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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
period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income........... 0.0272 0.0520 0.0056 0.0463 0.0278 0.0312 0.0343 0.0168
Net realized gain
on
investments...... -- -- -- -- -- -- 0.0023 --
- -------------------------------------------------------------------------------------------------------------------------------
Total from
investment
operations... 0.0272 0.0520 0.0056 0.0463 0.0278 0.0312 0.0366 0.0168
- -------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment
income........... (0.0272) (0.0520) (0.0556) (0.0463) (0.0278) (0.0312) (0.0343) (0.0168)
Distributions from
net realized
gains............ -- -- -- -- -- -- (0.0023) --
- -------------------------------------------------------------------------------------------------------------------------------
Total
distributions... (0.0272) (0.0520) (0.0556) (0.0463) (0.0278) (0.0312) (0.0366) (0.0168)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++...... 2.75% 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
period (000's)... $ 155,947 $125,377 $ 58,121 $ 2 $ 10,819 $ 7,396 $ 1,800 $ 295
Ratio of operating
expenses to
average net
assets........... 0.20% 0.20%(a) 0.20% 0.32% 0.45% 0.45% 0.45% 0.45%+
Ratio of net
investment income
to average net
assets........... 5.40% 5.22% 5.48% 4.35% 2.78% 3.07% 4.24% 5.89%+
Ratio of operating
expenses to
average net
assets without
waivers.......... 0.44% 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.......... 5.15% 4.93% 5.15% 4.13% 2.72% 2.88% 3.93% 5.54%+
Net investment
income per share
without
waivers.......... $ 0.0260 $ 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.
37
<PAGE> 40
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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
period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income........... 0.0265 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... 0.0265 0.0505 0.0537 0.0453 0.0268 0.0302 0.0484 0.0176
- -------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment
income........... (0.0265) (0.0505) (0.0537) (0.0453) (0.0268) (0.0302) (0.0461) (0.0176)
Distributions from
net realized
gains............ -- -- -- -- -- -- (0.0023) --
- -------------------------------------------------------------------------------------------------------------------------------
Total
distributions... (0.0265) (0.0505) (0.0537) (0.0453) (0.0268) (0.0302) (0.0484) (0.0176)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++...... 2.68% 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
period (000's)... $ 15,562 $ 6,482 $ 129 $ 2 $259,836 $149,252 $ 12,486 $ 5,589
Ratio of operating
expenses to
average net
assets........... 0.35% 0.35%(a) 0.35% 0.40% 0.55% 0.55% 0.55% 0.55%+
Ratio of net
investment income
to average net
assets........... 5.24% 5.07% 5.33% 4.27% 2.68% 2.71% 4.46% 5.86%+
Ratio of operating
expenses to
average net
assets without
waivers.......... 0.59% 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.......... 5.00% 4.78% 5.00% 4.05% 2.62% 2.52% 4.18% 5.47%+
Net investment
income per share
without
waivers.......... $ 0.0252 $ 0.0476(a) 0.0504 $ 0.0430 $ 0.0262 $ 0.0274 $ 0.0422 $ 0.0170
===============================================================================================================================
* 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.
</TABLE>
See Notes to Financial Statements.
38
<PAGE> 41
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- ---------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED
(UNAUDITED) 04/30/97 04/30/96 04/30/95*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income......................................... 0.0259 0.0495 0.0527 0.0299
Dividends from net investment income.......................... (0.0259) (0.0495) (0.0527) (0.0299)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++................................................ 2.62% 5.07% 5.39% 3.04%
===========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)........................... $ 50,427 $ 24,845 $108,168 $ 99,246
Ratio of operating expenses to average net assets........... 0.45% 0.45%(a) 0.45% 0.57%+
Ratio of net investment income to average net assets........ 5.15% 4.97% 5.23% 4.10%+
Ratio of operating expenses to average net assets without
waivers................................................... 0.69% 0.74%(a) 0.78% 0.79%+
Ratio of net investment income to average net assets without
waivers................................................... 4.90% 4.68% 4.90% 3.88%+
Net investment income per share without waivers............. $ 0.0247 $ 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.
39
<PAGE> 42
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS GOVERNMENT RESERVES
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
10/31/97 ENDED
(UNAUDITED) 04/30/97*
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period.................................................... $ 1.00 $ 1.00
- -----------------------------------------------------------------------------------------------------------------------
Net investment income................................................................... 0.0255 0.0482
Dividends from net investment income.................................................... (0.0255) (0.0482)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period.......................................................... $ 1.00 $ 1.00
=======================================================================================================================
Total Return++.......................................................................... 2.58% 4.93%
=======================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)..................................................... $ 232,499 $218,499
Ratio of operating expenses to average net assets..................................... 0.55% 0.55%+(a)
Ratio of net investment income to average net assets.................................. 5.04% 4.87%+
Ratio of operating expenses to average net assets without waivers..................... 0.79% 0.84%+(a)
Ratio of net investment income to average net assets without waivers.................. 4.80% 4.58%+
Net investment income per share without waivers....................................... $ 0.0242 $ 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 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.
40
<PAGE> 43
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Capital Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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 period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income....... 0.0183 0.0337 0.0362 0.0313 0.0198 0.0231 0.0356 0.0245
Dividends from net
investment income.......... (0.0183) (0.0337) (0.0362) (0.0313) (0.0198) (0.0231) (0.0356) (0.0245)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++.............. 1.84% 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 period
(000's).................. $ 71,775 $ 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% 0.20% 0.23% 0.45% 0.45% 0.45% 0.45%+
Ratio of net investment
income to average net
assets................... 3.63%+ 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...... 0.46%+ 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............... 3.37%+ 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............... $ 0.0170 $ 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.
41
<PAGE> 44
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Liquidity Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 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 period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income....... 0.0175 0.0323 0.0347 0.0304 0.0188 0.0221 0.0346 0.0478
Dividends from net
investment income.......... (0.0175) (0.0323) (0.0347) (0.0304) (0.0188) (0.0221) (0.0346) (0.0478)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================================================================
Total Return++.............. 1.76% 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 period
(000's).................. $ 79,771 $ 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% 0.35% 0.33% 0.55% 0.55% 0.55% 0.55%+
Ratio of net investment
income to average net
assets................... 3.48%+ 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...... 0.61%+ 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............... 3.22%+ 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............... $ 0.0162 $ 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.
42
<PAGE> 45
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For an Adviser Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- ---------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
10/31/97 ENDED ENDED ENDED
(UNAUDITED) 4/30/97 4/30/96 4/30/95*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adviser Class Shares:
Net asset value, beginning of period................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income.................................................. 0.0171 0.0313 0.0337 0.0199
Dividends from net investment income................................... (0.0171) (0.0313) (0.0337) (0.0199)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period......................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================================================
Total Return++......................................................... 1.72% 3.19% 3.43% 2.02%
===========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's).................................... $ 26,028 $ 7,296 $ 55,511 $ 64,123
Ratio of operating expenses to average net assets.................... 0.45%+ 0.45% 0.45% 0.48%+
Ratio of net investment income to average net assets................. 3.38%+ 3.13% 3.36% 3.11%+
Ratio of operating expenses to average net assets without waivers
and/or expenses reimbursed......................................... 0.71%+ 0.77% 0.83% 0.84%+
Ratio of net investment income to average net assets without waivers
and/or expenses reimbursed......................................... 3.12% 2.81% 2.98% 2.74%+
Net investment income per share without waivers and/or expenses
reimbursed......................................................... $ 0.0157 $ 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.
43
<PAGE> 46
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Market Class Share outstanding throughout each period.
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- --------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
10/31/97 ENDED
(UNAUDITED) 04/30/97*
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market Class Shares:
Net asset value, beginning of period...................................................... $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------------
Net investment income..................................................................... 0.0165 0.0301
Dividends from net investment income...................................................... (0.0165) (0.0301)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period............................................................ $ 1.00 $ 1.00
==========================================================================================================================
Total Return++............................................................................ 1.66% 3.06%
==========================================================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of period (000's)....................................................... $ 102,500 $ 78,300
Ratio of operating expenses to average net assets....................................... 0.55%+ 0.55%+
Ratio of net investment income to average net assets.................................... 3.28%+ 3.03%+
Ratio of operating expenses to average net assets without waivers....................... 0.81%+ 0.87%+
Ratio of net investment income to average net assets without waivers.................... 3.02%+ 2.71%+
Net investment income per share without waivers......................................... $ 0.0152 $ 0.0269
==========================================================================================================================
* The Nations Municipal Reserves Market Class Shares commenced operations on May 3, 1996.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
See Notes to Financial Statements.
44
<PAGE> 47
NOTES TO FINANCIAL STATEMENTS (unaudited) 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. Shareholders of a Portfolio have equal voting rights on
matters affecting all shareholders of a Portfolio. In addition, each class of
shares of a Portfolio has exclusive voting rights on matters that relate solely
to the class and separate voting rights on matters in which the interests of one
class of shares differ from the interest of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results 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 Advisors, 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 counter party 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 its 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 Portfolio's
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
establish a segregated 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 October 31, 1997, Nations Treasury Reserves had reverse repurchase
agreements outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount................................................ $115,756,000
Maturity Date.................................................. 07/01/98
Market Value of Assets Sold Under Agreements................... $114,869,946
</TABLE>
45
<PAGE> 48
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL
RESERVES
The average daily balance of reverse repurchase agreements outstanding
during the six months ended October 31, 1997, was $111,192,049. Nations Cash
Reserves and Nations Government Reserves did not enter into any reverse
repurchase agreements during the six months ended October 31, 1997.
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 six months ended October 31, 1997, representing
the difference between interest rates on the reverse repurchase and
repurchase agreements, amounted to $85,247. 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 on investments to
maturity, 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 carry forward. Additional distributions
of net investment income and capital gains may be made at the discretion of
the Board of Trustees in order to avoid application of the 4% non-deductible
Federal excise tax. Income distributions and capital gain distributions on a
Portfolio level are determined in accordance with 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 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 the Portfolios equal to 0.30% on an annualized
basis, of the average daily net assets of each 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-
46
<PAGE> 49
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL
RESERVES
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.
For the six months ended October 31, 1997, Stephens earned $236,189, after fee
waivers, from the Portfolios for its administration services.
The investment adviser, sub-adviser, administrator and co-administrator may,
from time to time, voluntarily reduce their fees payable by each Portfolio. For
the six months ended October 31, 1997, the investment adviser and administrator
voluntarily waived the following fees:
<TABLE>
<CAPTION>
FEES
WAIVED BY FEES
INVESTMENT WAIVED BY
ADVISER ADMINISTRATOR
---------- -------------
<S> <C> <C>
Nations Cash Reserves....................................... $2,229,860 $ 1,461,743
Nations Treasury Reserves................................... 623,812 337,037
Nations Government Reserves................................. 314,895 176,912
Nations Municipal Reserves.................................. 188,969 99,603
</TABLE>
NationsBank of Texas, N.A. ("NationsBank of Texas" and, collectively with The
Bank of New York ("BONY"), called "Custodians") acts as the custodian for the
Trust's assets and, for the six months ended October 31, 1997, earned $13,333
for providing such services. BONY has entered into an agreement with each of the
Portfolios and NationsBank of Texas, whereby BONY will serve as 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 six months ended October 31, 1997, the earnings
credit was $202.
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 six months ended October 31, 1997, earned
approximately $10,458 for providing such services. Stephens also serves as
distributor of the Portfolios' shares.
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.
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.
47
<PAGE> 50
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL
RESERVES
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.
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 six months ended October 31, 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 six months ended October 31, 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 and NBAI.
4. SHARES OF BENEFICIAL INTEREST.
As of October 31, 1997, an unlimited number of shares without par value were
authorized for the Trust. The Trust's Declaration of Trust authorizes the Board
of Trustees to classify or reclassify any authorized, but 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>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- ---------------
<S> <C> <C>
NATIONS CASH RESERVES:
Capital Class Shares:
Sold........................................... $10,959,208,183 $ 8,400,298,782
Issued as reinvestment of dividends............ 34,824,259 25,009,333
Redeemed....................................... (9,933,211,429) (7,348,719,105)
-------------- --------------
Net increase................................... $ 1,060,821,013 $ 1,076,589,010
============== ==============
</TABLE>
48
<PAGE> 51
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL
RESERVES
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- ---------------
<S> <C> <C>
NATIONS CASH RESERVES (CONTINUED):
Liquidity Class Shares:
Sold........................................... $ 3,214,287,017 $ 4,463,041,753
Issued as reinvestment of dividends............ 6,064,137 5,877,940
Redeemed....................................... (3,211,035,279) (4,084,515,073)
-------------- --------------
Net increase................................... $ 9,315,875 $ 384,404,620
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- ---------------
<S> <C> <C>
Adviser Class Shares:
Sold........................................... $ 1,744,862,398 $ 1,638,783,813
Issued as reinvestment of dividends............ 7,341,197 3,465,664
Redeemed....................................... (1,474,706,829) (1,792,509,122)
-------------- --------------
Net increase/(decrease)........................ $ 277,496,766 $ (150,259,645)
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997*
---------------- ---------------
<S> <C> <C>
Market Class Shares:
Sold........................................... $ 864,800,000 $ 794,300,010
Redeemed....................................... (719,800,000) (461,300,000)
-------------- --------------
Net increase................................... $ 145,000,000 $ 333,000,000
============== ==============
</TABLE>
- ---------------
* The Nations Cash Reserves Market Class Shares commenced operations on May 3,
1996.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- ---------------
<S> <C> <C>
NATIONS TREASURY RESERVES:
Capital Class Shares:
Sold........................................... $ 543,033,706 $ 1,673,872,701
Issued as reinvestment of dividends............ 1,127,794 793,663
Redeemed....................................... (807,047,229) (1,510,038,699)
-------------- --------------
Net increase/(decrease)........................ $ (262,885,729) $ 164,627,665
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- ---------------
<S> <C> <C>
Liquidity Class Shares:
Sold........................................... $ 869,124,545 $ 553,984,269
Issued as reinvestment of dividends............ 2,601,868 1,522,298
Redeemed....................................... (673,789,726) (485,733,563)
-------------- --------------
Net increase................................... $ 197,936,687 $ 69,773,004
============== ==============
</TABLE>
49
<PAGE> 52
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL
RESERVES
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- -------------
<S> <C> <C>
NATIONS TREASURY RESERVES (CONTINUED):
Adviser Class Shares:
Sold............................................ $1,155,939,388 $ 735,220,753
Issued as reinvestment of dividends............. 4,331,484 1,848,791
Redeemed........................................ (969,252,107) (758,512,266)
-------------- --------------
Net increase/(decrease)......................... $ 191,018,765 $ (21,442,722)
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
1997 1997*
---------------- --------------
<S> <C> <C>
Market Class Shares:
Sold............................................ $ 339,300,000 $ 333,950,010
Redeemed........................................ (283,200,000) (210,550,000)
-------------- --------------
Net increase.................................... $ 56,100,000 $ 123,400,010
============== ==============
</TABLE>
- ---------------
* The Nations Treasury Reserves Market Class Shares commenced operations on May
3, 1996.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- -------------
<S> <C> <C>
NATIONS GOVERNMENT RESERVES:
Capital Class Shares:
Sold............................................ $ 482,218,855 $ 396,992,148
Issued as reinvestment of dividends............. 1,690,027 488,093
Redeemed........................................ (453,338,312) (330,225,136)
-------------- --------------
Net increase.................................... $ 30,570,570 $ 67,255,105
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- --------------
<S> <C> <C>
Liquidity Class Shares:
Sold............................................ $ 270,911,710 $ 28,431,378
Issued as reinvestment of dividends............. 799,136 311,527
Redeemed........................................ (262,630,713) (22,390,624)
-------------- --------------
Net increase.................................... $ 9,080,133 $ 6,352,281
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- --------------
<S> <C> <C>
Adviser Class Shares:
Sold............................................ $ 172,388,971 $ 646,626,695
Issued as reinvestment of dividends............. 748,724 1,239,113
Redeemed........................................ (147,556,381) (731,189,720)
-------------- --------------
Net increase/(decrease)......................... $ 25,581,314 $ (83,323,912)
============== ==============
</TABLE>
50
<PAGE> 53
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued) NATIONS INSTITUTIONAL
RESERVES
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997*
---------------- --------------
<S> <C> <C>
NATIONS GOVERNMENT RESERVES (CONTINUED):
Market Class Shares:
Sold............................................ $ 460,149,999 $ 691,300,010
Redeemed........................................ (446,150,000) (472,800,000)
-------------- --------------
Net increase.................................... $ 13,999,999 $ 218,500,010
============== ==============
</TABLE>
- ---------------
* The Nations Government Reserves Market Class Shares commenced operations on
May 3, 1996.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- --------------
<S> <C> <C>
NATIONS MUNICIPAL RESERVES:
Capital Class Shares:
Sold............................................ $ 159,381,512 $ 188,376,816
Issued as reinvestment of dividends............. 63,056 --
Redeemed........................................ (147,370,354) (177,158,206)
-------------- --------------
Net increase.................................... $ 12,074,214 $ 11,218,610
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- --------------
<S> <C> <C>
Liquidity Class Shares:
Sold............................................ $ 419,269,230 $ 456,759,834
Issued as reinvestment of dividends............. 650,754 980,434
Redeemed........................................ (394,825,449) (409,796,778)
-------------- --------------
Net increase.................................... $ 25,094,535 $ 47,943,490
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
---------------- --------------
<S> <C> <C>
Adviser Class Shares:
Sold............................................ $ 136,408,555 $ 60,607,746
Issued as reinvestment of dividends............. 394,289 196,137
Redeemed........................................ (118,071,351) (109,019,481)
-------------- --------------
Net increase/(decrease)......................... $ 18,731,493 $ (48,215,598)
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997*
---------------- --------------
<S> <C> <C>
Market Class Shares:
Sold............................................ $ 222,500,001 $ 339,700,010
Issued as reinvestment of dividends............. -- --
Redeemed........................................ (198,300,000) (261,400,000)
-------------- --------------
Net increase.................................... $ 24,200,001 $ 78,300,010
============== ==============
</TABLE>
- ---------------
* The Nations Municipal Reserves Market Class Shares commenced operations on
May 3, 1996.
51
<PAGE> 54
NOTES TO FINANCIAL STATEMENTS (unaudited) (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
October 31, 1997.
<TABLE>
<CAPTION>
VALUE PERCENTAGE
ACQUISITION PER FAIR OF COST AT
SECURITY DATE PAR VALUE UNIT VALUE NET ASSETS 10/31/97
- ------------------------------------------ ----------- ----------- ----- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Jackson National Life Insurance Company:
5.880% 01/02/98++#...................... 12/31/96 $50,000,000 $1.00 $50,000,000 1.2% $50,000,000
5.870% 01/01/50++#...................... 06/14/96 50,000,000 1.00 50,000,000 1.2 50,000,000
Peoples Security Life Insurance Company:
5.730% 01/01/50++#...................... 05/09/96 25,000,000 1.00 25,000,000 .60 25,000,000
Travelers Insurance Company:
5.727% 08/31/98++#...................... 07/31/97 50,000,000 1.00 50,000,000 1.2 50,000,000
5.727% 11/13/98++#...................... 10/14/97 50,000,000 1.00 50,000,000 1.2 50,000,000
</TABLE>
- ---------------
# Put Date is 04/30/98
++ 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.
Borrowings for the six months ended October 31, 1997, by the Funds under the
Agreement are disclosed below:
<TABLE>
<CAPTION>
AMOUNT AVERAGE
OUTSTANDING MAXIMUM AVERAGE DEBT
AT AMOUNT AMOUNT AVERAGE PER INTEREST RATE INTEREST
10/31/1997 OUTSTANDING OUTSTANDING SHARES SHARE HIGH LOW EXPENSE
----------- ----------- ----------- ----------- ------- -------- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fund Nations Municipal
Reserves.............. -- $18,400,000 $ 146,630 231,876,669 $0.0006 6.02% 5.95% $4,477
</TABLE>
The average amount outstanding was calculated by adding the borrowings at the
end of each day and dividing the sum by the number of days in the six months
ended October 31, 1997.
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.
52
<PAGE> 55
NOTES TO FINANCIAL STATEMENTS (unaudited) (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. PRINCIPAL SHAREHOLDERS.
At October 31, 1997, shareholders holding more than 10% of shares of outstanding
are as follows:
<TABLE>
<CAPTION>
FUND NUMBER OF SHAREHOLDERS % OF TOTAL SHARES OUTSTANDING
- --------------------------------------------- ---------------------- -----------------------------
<S> <C> <C>
Nations Cash Reserves........................ 2 24%
Nations Government Reserves.................. 1 10%
</TABLE>
53
<PAGE> 56
[NATIONS FUNDS LOGO] ________________
| |
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Charlotte, NC 28234-4602 | U.S. POSTAGE |
Toll Free 1-800-626-2275 | PAID |
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| PERMIT NO. |
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|________________|
