<PAGE>
[GRAPHIC]
ANNUAL REPORT
[LOGO]
NATIONS FUNDS
NATIONS CASH RESERVES
NATIONS TREASURY RESERVES
NATIONS GOVERNMENT RESERVES
NATIONS MUNICIPAL RESERVES
FOR THE YEAR ENDED APRIL 30, 1998
<PAGE>
- -----------------------------------------
NOT FDIC- MAY LOSE VALUE
-----------------------
INSURED NO BANK GUARANTEE
- -----------------------------------------
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.
Nations Institutional Reserves Investment Adviser: NationsBanc Advisors, Inc.
Nations Institutional Reserves Investment Sub-Adviser: TradeStreet Investment
Associates, Inc.
<PAGE>
[LOGO]
DEAR SHAREHOLDER:
We are pleased to present the Annual Report for Nations Institutional Reserves
(the "Portfolios"). We hope you will take a moment to review this report. It
contains important financial information regarding your investment for the
one-year period ended April 30, 1998.
ECONOMIC REVIEW
Economic statistics released during the first four months of 1998 suggest that
the U.S. economy is on a course of steady growth with low inflation. While the
financial turmoil in the Asian markets created volatility during the reporting
period, the money market yield curve remained positively sloped. For the first
quarter of 1998, real Gross Domestic Product increased by more than 4.2%, the
Consumer Price Index rose about 2 tenths of one percent, and the Producer Price
Index continued to post negative monthly results.
LOOKING AHEAD
The next several months will likely be dominated by news about the financial
crisis in Asia and its impact on U.S. companies. We do not, however, expect the
Asian financial crisis to cause U.S. market conditions to deteriorate. We
believe the positive cyclical themes of 1997 -- moderate growth, low inflation
and continued profit growth -- will remain intact for the year ahead. The
Federal Open Market Committee will watch this situation as it develops, and
assess the potential impact to the economy. As these economic and market
conditions evolve, the Portfolios will be managed strategically to seek 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 Portfolios are managed daily to provide
shareholders with access to the major sectors of the money market --
conveniently and cost-effectively.
We thank you for choosing the Portfolios to help pursue your short-term cash
management needs.
Sincerely,
/s/ A. Max Walker /s/ Robert H. Gordan
A. Max Walker Robert H. Gordon
President and Chairman President, NationsBanc Advisors, Inc.
of the Board
April 30, 1998
MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
HOWEVER, THERE CAN BE NO ASSURANCE THAT MONEY MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00. INVESTMENTS IN MONEY MARKET FUNDS
ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
This report is submitted for the general information of Nations Institutional
Reserves shareholders and must be preceded or accompanied by a current Nations
Institutional Reserves prospectus.
Source for all statistical data -- TradeStreet Investment Associates, Inc.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS CASH RESERVES Date Value
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - DOMESTIC - 3.2%
Bankers Trust Co. of New York:
$35,000,000 5.990% . . . . . . . . . . . . . . . . . . . 06/25/98 $ 34,997,984
35,000,000 5.670% . . . . . . . . . . . . . . . . . . . 02/26/99 34,986,170
23,500,000 5.770% . . . . . . . . . . . . . . . . . . . 04/28/99 23,471,014
45,000,000 5.780% . . . . . . . . . . . . . . . . . . . 04/28/99 44,978,638
Morgan Guaranty Trust Co.,
36,000,000 5.550% . . . . . . . . . . . . . . . . . . . 02/02/99 35,928,788
- -----------------------------------------------------------------------------------------------------
Total Certificates of Deposit - Domestic (Cost $174,362,594) 174,362,594
- -----------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - EURO - 0.6% (Cost $35,000,000)
Abby National Treasury Service
35,000,000 5.700% . . . . . . . . . . . . . . . . . . . 01/28/99 35,000,000
- -----------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - YANKEE - 11.0%
ABN-Amro Bank, (New York),
25,000,000 5.750% . . . . . . . . . . . . . . . . . . . 03/31/99 24,986,858
Bank Nationale de Paris, (New York),
30,000,000 5.710% . . . . . . . . . . . . . . . . . . . 02/25/99 30,000,000
Bank of Tokyo Mitsubishi, (New York),
25,000,000 5.800% . . . . . . . . . . . . . . . . . . . 05/11/98 25,000,000
Bayerische Landesbank AG, (New York),
20,000,000 5.644%+ . . . . . . . . . . . . . . . . . . . 05/04/98++ 19,997,512
Bayerische Vereinsbank, (New York),
30,000,000 5.680% . . . . . . . . . . . . . . . . . . . 01/21/99 30,000,000
Comerica Bank,
40,000,000 5.613%+ . . . . . . . . . . . . . . . . . . . 05/04/98++ 39,996,650
Credit Agricole, (New York),
40,000,000 5.750% . . . . . . . . . . . . . . . . . . . 04/01/99 39,982,423
Credit Suisse, First Boston Corp.,
20,000,000 5.800% . . . . . . . . . . . . . . . . . . . 10/14/98 20,000,000
Society Generale, (New York):
75,000,000 5.415%+ . . . . . . . . . . . . . . . . . . . 05/01/98++ 74,982,934
25,000,000 5.415%+ . . . . . . . . . . . . . . . . . . . 05/01/98++ 24,994,222
Society Generale, (New York),
20,000,000 5.950% . . . . . . . . . . . . . . . . . . . 10/21/98 19,995,470
National Bank of Canada, (New York):
20,000,000 6.140% . . . . . . . . . . . . . . . . . . . 06/05/98 19,999,615
20,000,000 5.940% . . . . . . . . . . . . . . . . . . . 12/03/98 20,000,000
30,000,000 5.640% . . . . . . . . . . . . . . . . . . . 01/05/99 30,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS CASH RESERVES Date Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - YANKEE (CONTINUED)
Society Generale, (New York):
$ 20,000,000 5.880% . . . . . . . . . . . . . . . . . . . 07/22/98 $ 19,998,281
25,000,000 5.700% . . . . . . . . . . . . . . . . . . . 02/26/99 24,992,099
16,250,000 5.700% . . . . . . . . . . . . . . . . . . . 03/23/99 16,243,048
29,000,000 5.800% . . . . . . . . . . . . . . . . . . . 03/31/99 28,988,329
30,000,000 5.750% . . . . . . . . . . . . . . . . . . . 04/16/99 29,985,636
30,000,000 5.800% . . . . . . . . . . . . . . . . . . . 04/28/99 29,985,630
Westdeutsche Landesbank, (New York),
35,000,000 5.680% . . . . . . . . . . . . . . . . . . . 01/25/99 35,000,000
- -----------------------------------------------------------------------------------------------------
Total Certificates of Deposit - Yankee (Cost $605,128,707) 605,128,707
- -----------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 36.3%
AON Corp.:
11,000,000 Discount note. . . . . . . . . . . . . . . . 05/07/98 10,989,843
16,600,000 Discount note. . . . . . . . . . . . . . . . 05/26/98 16,535,906
14,495,000 Discount note. . . . . . . . . . . . . . . . 06/25/98 14,372,537
27,883,000 Discount note. . . . . . . . . . . . . . . . 07/08/98 27,593,327
31,979,000 Discount note. . . . . . . . . . . . . . . . 07/22/98 31,576,917
Bankers Trust Co. of New York,
20,000,000 Discount note. . . . . . . . . . . . . . . . 11/24/98 19,368,650
Beta Finance Corp. Inc.,
7,000,000 Discount note(a) . . . . . . . . . . . . . . 09/24/98 6,845,564
BTAB Holdings Funding Corp.:
30,000,000 Discount note. . . . . . . . . . . . . . . . 12/15/98 28,956,900
30,000,000 Discount note. . . . . . . . . . . . . . . . 01/21/99 28,769,958
Burmah Castrol Finance PLC,
11,000,000 Discount note(a) . . . . . . . . . . . . . . 05/18/98 10,970,599
Concord Minutemen Capital Co., L.L.C.:
30,000,000 Discount note(a) . . . . . . . . . . . . . . 05/14/98 29,939,875
31,805,000 Discount note(a) . . . . . . . . . . . . . . 06/16/98 31,580,262
23,691,000 Discount note(a) . . . . . . . . . . . . . . 06/17/98 23,520,267
13,000,000 Discount note(a) . . . . . . . . . . . . . . 10/07/98 12,685,931
Countrywide Home Loan, Inc.:
35,000,000 Discount note. . . . . . . . . . . . . . . . 05/19/98 34,902,700
14,648,000 Discount note. . . . . . . . . . . . . . . . 05/20/98 14,605,094
121,400,000 Discount note. . . . . . . . . . . . . . . . 05/29/98 120,875,568
Edison Securitization, L.L.C.:
50,347,000 Discount note(a) . . . . . . . . . . . . . . 05/19/98 50,208,042
7,000,000 Discount note(a) . . . . . . . . . . . . . . 07/10/98 6,925,003
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS CASH RESERVES Date Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Finova Capital Corp.:
$ 30,000,000 Discount note. . . . . . . . . . . . . . . . 06/11/98 $ 29,811,058
25,000,000 Discount note. . . . . . . . . . . . . . . . 06/17/98 24,819,833
25,000,000 Discount note. . . . . . . . . . . . . . . . 06/22/98 24,800,306
20,000,000 Discount note. . . . . . . . . . . . . . . . 06/29/98 19,818,083
General Motors Corp.:
37,600,000 Discount note. . . . . . . . . . . . . . . . 05/28/98 37,443,208
Honeywell Inc.,
250,000,000 Discount note. . . . . . . . . . . . . . . . 05/01/98 250,000,000
International Securitization Corp.:
50,000,000 Discount note(a) . . . . . . . . . . . . . . 05/15/98 49,891,889
16,075,000 Discount note(a) . . . . . . . . . . . . . . 05/27/98 16,010,682
20,000,000 Discount note(a) . . . . . . . . . . . . . . 07/09/98 19,789,550
47,000,000 Discount note(a) . . . . . . . . . . . . . . 08/20/98 46,195,713
Lehman Brothers Holdings Inc.:
20,000,000 Discount note. . . . . . . . . . . . . . . . 05/01/98 20,000,000
25,000,000 Discount note. . . . . . . . . . . . . . . . 05/29/98 24,891,111
Lexington Parker Capital Co., L.L.C.:
51,076,000 Discount note(a) . . . . . . . . . . . . . . 05/27/98 50,873,259
35,000,000 Discount note(a) . . . . . . . . . . . . . . 06/02/98 34,827,644
31,823,000 Discount note(a) . . . . . . . . . . . . . . 07/09/98 31,486,923
20,000,000 Discount note(a) . . . . . . . . . . . . . . 08/07/98 19,701,644
13,930,000 Discount note(a) . . . . . . . . . . . . . . 08/14/98 13,706,540
20,000,000 Discount note(a) . . . . . . . . . . . . . . 08/21/98 19,659,022
Mitsubishi International Corp.:
40,000,000 Discount note. . . . . . . . . . . . . . . . 05/11/98 39,938,556
15,000,000 Discount note. . . . . . . . . . . . . . . . 05/20/98 14,956,221
20,000,000 Discount note. . . . . . . . . . . . . . . . 06/17/98 19,856,128
28,000,000 Discount note. . . . . . . . . . . . . . . . 07/17/98 27,667,617
34,000,000 Discount note. . . . . . . . . . . . . . . . 07/22/98 33,570,958
National Bank of Canada,
20,000,000 Discount note. . . . . . . . . . . . . . . . 12/31/98 19,268,000
PHH Corp.,
135,000,000 Discount note. . . . . . . . . . . . . . . . 05/15/98 134,705,533
Republic Industries Funding Corp.,
15,000,000 Discount note. . . . . . . . . . . . . . . . 06/03/98 14,924,237
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS CASH RESERVES Date Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Safeco Corp.:
$30,000,000 Discount note(a) . . . . . . . . . . . . . . 05/20/98 $ 29,913,075
50,000,000 Discount note(a) . . . . . . . . . . . . . . 06/10/98 49,692,778
30,000,000 Discount note(a) . . . . . . . . . . . . . . 06/11/98 29,811,742
16,000,000 Discount note(a) . . . . . . . . . . . . . . 07/22/98 15,798,827
Sumitomo Corp. of America:
45,000,000 Discount note. . . . . . . . . . . . . . . . 05/06/98 44,964,653
20,000,000 Discount note. . . . . . . . . . . . . . . . 07/29/98 19,724,100
40,000,000 Discount note. . . . . . . . . . . . . . . . 08/12/98 39,362,544
26,000,000 Discount note. . . . . . . . . . . . . . . . 09/09/98 25,473,016
75,000,000 Discount note. . . . . . . . . . . . . . . . 09/30/98 73,242,500
25,000,000 Discount note. . . . . . . . . . . . . . . . 10/07/98 24,384,979
30,000,000 Discount note. . . . . . . . . . . . . . . . 10/21/98 29,194,108
5,000,000 Discount note. . . . . . . . . . . . . . . . 12/11/98 4,828,267
WCP Funding, Inc.,
40,000,000 Discount note(a) . . . . . . . . . . . . . . 05/22/98 39,871,200
- -----------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $1,986,098,447) 1,986,098,447
- -----------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 9.6%
Bankers Trust Co. of New York:
40,000,000 5.430%+. . . . . . . . . . . . . . . . . . . 05/01/98++ 39,995,993
5,000,000 5.490%+. . . . . . . . . . . . . . . . . . . 05/01/98++ 5,000,000
Bear Stearns & Co., Inc.:
40,000,000 5.490%+. . . . . . . . . . . . . . . . . . . 05/01/98++ 40,000,000
40,000,000 5.636%+. . . . . . . . . . . . . . . . . . . 05/21/98++ 40,000,000
25,000,000 5.638%+. . . . . . . . . . . . . . . . . . . 07/21/98++ 25,000,000
Goldman, Sachs & Co.,
50,000,000 5.688%+. . . . . . . . . . . . . . . . . . . 06/26/98++ 50,000,000
Lehman Brothers Holdings, Inc.:
20,000,000 5.773%+. . . . . . . . . . . . . . . . . . . 05/05/98++ 20,000,000
70,000,000 5.716%+. . . . . . . . . . . . . . . . . . . 05/12/98++ 70,000,000
40,000,000 5.718%+. . . . . . . . . . . . . . . . . . . 06/23/98++ 40,000,000
50,000,000 5.550%+. . . . . . . . . . . . . . . . . . . 05/01/98++ 50,000,000
Merrill Lynch & Co., Inc.:
50,000,000 5.722%+. . . . . . . . . . . . . . . . . . . 05/05/98++ 50,000,000
25,000,000 5.730%+. . . . . . . . . . . . . . . . . . . 05/01/98++ 25,000,000
Morgan Stanley Dean Witter & Co.,
25,000,000 5.606%+. . . . . . . . . . . . . . . . . . . 07/15/98++ 24,996,576
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS CASH RESERVES Date Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE OBLIGATIONS (CONTINUED)
PHH Corp.:
$ 30,000,000 5.722%+. . . . . . . . . . . . . . . . . . . 05/05/98++ $ 30,000,000
17,000,000 5.680%+. . . . . . . . . . . . . . . . . . . 09/25/98++ 16,997,495
- -----------------------------------------------------------------------------------------------------
Total Corporate Obligations (Cost $526,990,064). . . . . . . . . 526,990,064
- -----------------------------------------------------------------------------------------------------
MEDIUM-TERM NOTES - 4.9%
CIT Group, Inc.,
11,710,000 6.500%. . . . . . . . . . . . . . . . . . . . 07/13/98 11,721,635
CS First Boston Mortgage Capital, L.L.C.,
140,000,000 5.973%+(a). . . . . . . . . . . . . . . . . . 07/01/98 140,000,000
Morgan Guaranty Trust Co.,
30,000,000 5.965% . . . . . . . . . . . . . . . . . . . 06/22/98 29,998,571
Morgan (J.P.) Co.,
20,000,000 5.750% . . . . . . . . . . . . . . . . . . . 03/10/99 20,000,000
PHH Corp.,
39,000,000 5.986% . . . . . . . . . . . . . . . . . . . 08/12/98 38,998,459
Philip Morris Co.:
15,000,000 7.375% . . . . . . . . . . . . . . . . . . . 02/15/99 15,176,053
11,150,000 8.625% . . . . . . . . . . . . . . . . . . . 03/01/99 11,405,132
- -----------------------------------------------------------------------------------------------------
Total Medium-Term Notes (Cost $267,299,850 . . . . . . . . . . . 267,299,850
- -----------------------------------------------------------------------------------------------------
GUARANTEED INVESTMENT CONTRACTS - 7.3%
Commonwealth Life Insurance Co.,
75,000,000 5.620%**+. . . . . . . . . . . . . . . . . . 05/01/98++ 75,000,000
Jackson National Life Insurance Co.:
50,000,000 5.790%**+. . . . . . . . . . . . . . . . . . 07/01/98++ 50,000,000
50,000,000 5.780%**+. . . . . . . . . . . . . . . . . . 10/27/98# 50,000,000
New York Life Insurance Co.,
100,000,000 5.671%**+. . . . . . . . . . . . . . . . . . 05/07/98# 100,000,000
Peoples Security Life Insurance Co.,
25,000,000 5.760%**+. . . . . . . . . . . . . . . . . . 10/27/98# 25,000,000
Travelers Insurance Co.:
50,000,000 5.676%**+. . . . . . . . . . . . . . . . . . 07/14/98++ 50,000,000
50,000,000 5.672%**+. . . . . . . . . . . . . . . . . . 05/01/98++ 50,000,000
- -----------------------------------------------------------------------------------------------------
Total Guaranteed Investment Contracts (Cost $400,000,000). . . . 400,000,000
- -----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS CASH RESERVES Date Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BOND - 0.7% (Cost $40,000,000)
Virginia (State of), Housing Development Authority,
$ 40,000,000 5.450%+. . . . . . . . . . . . . . . . . . . 05/06/98++ $ 40,000,000
- -----------------------------------------------------------------------------------------------------
TIME DEPOSITS - 1.4% (Cost $75,000,000)
Chase Manhattan Bank,
75,000,000 5.500% . . . . . . . . . . . . . . . . . . . 05/01/98 75,000,000
- -----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 21.4%
40,000,000 Agreement with BT Alex Brown, Inc.,
5.550% dated 04/30/98 to be repurchased at $40,006,167
on 05/01/98, collateralized by $37,987,000 U.S. Government
Securities, 3.625% - 8.750% due
08/31/00 - 08/15/20 (value $40,817,068) . . . . . . . . . . . 40,000,000
700,000,000 Agreement with BZW Securities Corp.,
5.580% dated 04/30/98 to be repurchased at $700,108,500
on 05/01/98 collateralized by $708,088,000
U.S. Government Agency Securities
0.000% - 8.250% due 05/13/98-02/13/08 (value $714,000,230). . 700,000,000
100,000,000 Agreement with CS First Boston Corp.,
5.610% dated 04/30/98 to be repurchased at $100,015,583
on 05/01/98, collateralized by $106,254,000 Discount Commercial
Paper due 05/13/98-08/06/98 (value $105,483,401). . . . . . . 100,000,000
185,000,000 Agreement with Goldman Sachs & Co., Inc.,
5.600% dated 04/30/98 to be repurchased at $185,028,778
on 05/01/98, collateralized by $191,088,000 Discount Commercial
Paper due 05/05/98 - 10/05/98 (value $189,209,159). . . . . . 185,000,000
50,000,000 Agreement with JP Morgan Securities, Inc.,
5.550% dated 04/30/98 to be repurchased at $50,007,708
on 05/01/98, collateralized by $51,600,931 Discount Commercial
Paper due 07/27/98 - 10/26/98 (value $51,000,000) . . . . . . 50,000,000
100,000,000 Agreement with Merrill Lynch & Co.,
5.600% dated 04/30/98 to be repurchased at $100,015,556
on 05/01/98, collateralized by $103,512,000 Discount Commercial
Paper due 05/01/98 - 05/27/98 (value $103,131,787). . . . . . 100,000,000
- -----------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $1,175,000,000) . . . . . . 1,175,000,000
- -----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal
Amount NATIONS CASH RESERVES Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
MONEY MARKET FUNDS - 3.4%
123,000,559 AIM Liquid Asset Portfolio . . . . . . . . . . . . . . . . . . $ 123,000,557
33,553,000 AIM Prime Fund . . . . . . . . . . . . . . . . . . . . . . . . 33,553,000
29,392,000 Dreyfus Cash Management Plus Fund. . . . . . . . . . . . . . . 29,392,000
- -----------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $185,945,557). . . . . . . . . 185,945,557
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $5,470,825,219*) . . . . . . . . 99.8% $5,470,825,219
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) . . . . . . . . . . . .0.2%
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,969,124
Dividends payable. . . . . . . . . . . . . . . . . . . . . . . (9,766,802)
Investment advisory fee payable . . . . . . . . . . . . . . . (470,205)
Shareholder servicing and distribution fees payable. . . . . . (455,573)
Accrued Trustees' fees and expenses . . . . . . . . . . . . . (131,070)
Custodian fees payable . . . . . . . . . . . . . . . . . . . . (47,335)
Administration fees payable . . . . . . . . . . . . . . . . . (48,380)
Accrued expenses and other payables. . . . . . . . . . . . . . (527,063)
- -----------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET) . . . . . . . . . . . 10,522,696
- -----------------------------------------------------------------------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . .100.0% $5,481,347,915
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
<S> <C>
Capital Class Shares:
($3,051,559,014 DIVIDED BY 3,051,544,137 shares outstanding). . $ 1.00
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Liquidity Class Shares:
($1,107,869,219 DIVIDED BY 1,107,863,820 shares outstanding). . $ 1.00
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Adviser Class Shares:
($672,416,503 DIVIDED BY 672,413,228 shares outstanding) . . . $ 1.00
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Market Class Shares:
($649,503,179 DIVIDED BY 649,500,010 shares outstanding) . . . $ 1.00
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1998
NATIONS CASH RESERVES
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
** Restricted security (Note 5).
+ Floating rate note. The interest rate shown reflects the rate
currently in effect.
++ Reset date. Interest rates reset either daily, weekly, monthly,
quarterly or semi-annually.
# Security subject to a demand feature which allows the Portfolio to put
the security back to the issuer within 7 to 180 calendar days.
(a) Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
<S> <C>
AT APRIL 30, 1998, NET ASSETS CONSIST OF:
Accumulated net realized gain on investments sold. . . . . . $ 26,720
Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . 5,481,321,195
- -----------------------------------------------------------------------------------------------------
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . $5,481,347,915
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1998
Principal Maturity
Amount NATIONS TREASURY RESERVES Date Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U. S. TREASURY NOTES - 12.5%
$5,000,000 8.250% # . . . . . . . . . . . . . . . . . . 07/15/98 $ 5,025,271
30,000,000 6.250% # . . . . . . . . . . . . . . . . . . 07/31/98 30,040,830
10,000,000 4.750% # . . . . . . . . . . . . . . . . . . 09/30/98 9,964,138
20,000,000 6.000% # . . . . . . . . . . . . . . . . . . 09/30/98 20,028,044
30,000,000 5.875% # . . . . . . . . . . . . . . . . . . 10/31/98 30,029,741
45,000,000 5.875% # . . . . . . . . . . . . . . . . . . 01/31/99 45,131,005
15,000,000 5.500% # . . . . . . . . . . . . . . . . . . 02/28/99 14,998,070
30,000,000 6.375% . . . . . . . . . . . . . . . . . . . 04/30/99 30,223,161
- -----------------------------------------------------------------------------------------------------
Total U.S. Treasury Obligations (Cost $185,440,260) . . . . . 185,440,260
- -----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 95.3%
209,000,000 Agreement with ABN AMRO Bank, Inc. (New York),
5.550% dated 04/30/98 to be repurchased at $209,032,221
on 05/01/98, collateralized by $639,747,000 U.S. Treasury
Strips Principal Only due 05/31/00 - 02/15/21
(value $213,180,218). . . . . . . . . . . . . . . . . . . . . . 209,000,000
73,000,000 Agreement with Bear Stearns & Co., Inc.,
5.580% dated 04/30/98 to be repurchased at $73,011,315
on 05/01/98, collateralized by $72,749,024 GNMA,
6.500% -7.375% due 04/20/23 - 03/20/28
(value $74,738,963) . . . . . . . . . . . . . . . . . . . . . . 73,000,000
367,000,000 Agreement with BT Alex Brown, Inc.,
5.550% dated 04/30/98 to be repurchased at $367,056,579
on 05/01/98, collateralized by $29,900,000 U.S. Treasury Bills,
due 06/11/98; $45,852,000 U.S. Treasury Bonds, 6.250% - 8.875%
due 02/15/09 - 08/15/23; $283,170,000 U.S. Treasury Notes,
5.000% - 7.000% due 12/31/98 - 02/15/08 (value $374,489,976). . 367,000,000
156,741,000 Agreement with CS First Boston Corp.,
Interest is payable monthly. The agreement is terminable by the
Portfolio daily. The final maturity of the agreement is 07/01/98,
collateralized by $373,170,000 U.S. Treasury Strips
Principal Only, due 05/15/10 - 05/15/14 (value $162,259,408)##. 156,741,000
42,000,000 Agreement with Goldman Sachs & Co.,
5.470% dated 04/30/98 to be repurchased at $42,006,382
on 05/01/98, collateralized by $44,202,076 GNMA
7.000% due 07/15/27 (value $42,846,510) . . . . . . . . . . . . 42,000,000
73,000,000 Agreement with HSBC Securities, Inc.,
5.530% dated 04/30/98 to be repurchased at $73,011,214
on 05/01/98, collateralized by $71,915,000 U.S. Treasury Note,
7.125% due 02/29/00 (value $74,462,970) . . . . . . . . . . . . 73,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS TREASURY RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
$ 73,000,000 Agreement with J.P. Morgan & Co.,
5.570% dated 04/30/98 to be repurchased at $73,011,295 on
05/01/98, collateralized by $71,832,188 GNMA,
7.000% - 8.500% due 03/15/13 -04/15/28
(value $74,460,001). . . . . . . . . . . . . . . . . . . . . . . . . $ 73,000,000
73,000,000 Agreement with Lehman Brothers Holdings, Inc.,
5.520% dated 04/30/98 to be repurchased at $73,011,193
on 05/01/98, collateralized by $72,114,965 GNMA,
6.500% - 9.500% due 10/15/11 - 08/20/27 (value $74,454,219). . . . . 73,000,000
73,000,000 Agreement with Merrill Lynch & Co.,
5.530% dated 04/30/98 to be repurchased at $73,011,214
on 05/01/98, collateralized by $203,897,000 U.S. Treasury Strips
Principal Only due 11/15/11 - 02/15/17 (value $74,460,088) . . . . . 73,000,000
50,000,000 Agreement with Morgan Stanley Group, Inc.,
5.530% dated 04/30/98 to be repurchased at $50,007,681
on 05/01/98, collateralized by $49,198,218 GNMA,
7.000% - 8.500% due 10/20/24 - 08/20/27 (value $51,455,706). . . . . 50,000,000
73,000,000 Agreement with Salomon Smith Barney Holdings, Inc.,
5.570% dated 04/30/98 to be repurchased at $73,011,295
on 05/01/98, collateralized by $74,000,000 GNMA,
5.500 % - 12.000% due 09/15/98 - 02/15/27 (value $74,460,000). . . . 73,000,000
73,000,000 Agreement with UBS Securities, Inc.,
5.560% dated 04/30/98 to be repurchased at $73,011,274
on 05/01/98, collateralized by $73,168,171 GNMA,
6.500% - 14.000% due 12/20/99 - 11/15/27 (value $74,460,054) . . . . 73,000,000
73,000,000 Agreement with West Deutschlandesbank,
5.570% dated 04/30/98 to be repurchased at $73,011,295
on 05/01/98, collateralized by $74,049,900 GNMA,
7.000% due 11/20/24 (value $75,994,739). . . . . . . . . . . . . . . 73,000,000
- --------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $1,408,741,000). . . . . . . . . . . 1,408,741,000
- --------------------------------------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS - 2.8%
19,286,000 AIM Treasury Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . 19,286,000
21,431,000 Dreyfus Treasury Cash Management Fund. . . . . . . . . . . . . . . . . 21,431,000
- --------------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $40,717,000). . . . . . . . . . . . . 40,717,000
TOTAL INVESTMENTS (Cost $1,634,898,260*). . . . . . . . . . . . 110.6% $ 1,634,898,260
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
NATIONS TREASURY RESERVES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER ASSETS AND LIABILITIES (NET). . . . . . . . . . . . . . .(10.6)%
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,991,782
Payable for reverse repurchase agreement . . . . . . . . . . . . . . . (156,741,000)
Dividends payable. . . . . . . . . . . . . . . . . . . . . . . . . . . (1,833,332)
Shareholder servicing and distribution fees payable. . . . . . . . . . (225,173)
Investment advisory fee payable. . . . . . . . . . . . . . . . . . . . (138,741)
Accrued Trustees' fees and expenses. . . . . . . . . . . . . . . . . . (48,952)
Custodian fees payable . . . . . . . . . . . . . . . . . . . . . . . . (38,480)
Administration fee payable . . . . . . . . . . . . . . . . . . . . . . (14,275)
Accrued expenses and other payables. . . . . . . . . . . . . . . . . . (127,050)
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET) . . . . . . . . . . . . . . . (157,175,221)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $ 1,477,723,039
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($246,057,614 DIVIDED BY 246,062,945 shares outstanding) . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Liquidity Class Shares:
($743,410,161 DIVIDED BY 743,424,376 shares outstanding) . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Adviser Class Shares:
($222,760,213 DIVIDED BY 222,764,396 shares outstanding) . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Market Class Shares:
($265,495,051 DIVIDED BY 265,500,010 shares outstanding) . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
# Denotes securities subject to repurchase under reverse repurchase agreements as of April 30, 1998.
## Security segregated as collateral for reverse repurchase agreement.
- --------------------------------------------------------------------------------------------------------------
AT APRIL 30, 1998, NET ASSETS CONSIST OF:
Accumulated net realized loss on investments sold. . . . . . . . . . . $ (27,840)
Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,477,750,879
- --------------------------------------------------------------------------------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,477,723,039
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal Maturity
Amount NATIONS GOVERNMENT RESERVES Date Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 29.6%
FEDERAL FARM CREDIT BANK (FFCB) NOTES - 1.9%
$ 5,000,000 5.600% . . . . . . . . . . . . . . . . . . . . . . . . . . . 10/1/98 $ 5,999,761
6,000,000 5.700% . . . . . . . . . . . . . . . . . . . . . . . . . . . 11/3/98 5,000,936
- --------------------------------------------------------------------------------------------------------------
11,000,697
- --------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (FHLB) NOTES - 16.9%
20,000,000 5.430% + . . . . . . . . . . . . . . . . . . . . . . . . . . 5/01/98++ 20,000,000
20,000,000 5.523% + . . . . . . . . . . . . . . . . . . . . . . . . . . 5/06/98++ 19,996,751
4,000,000 6.010% . . . . . . . . . . . . . . . . . . . . . . . . . . . 05/15/98 4,000,002
3,000,000 5.820% . . . . . . . . . . . . . . . . . . . . . . . . . . . 06/16/98 2,999,852
3,000,000 5.900% . . . . . . . . . . . . . . . . . . . . . . . . . . . 06/19/98 2,999,991
5,000,000 5.720% . . . . . . . . . . . . . . . . . . . . . . . . . . . 07/07/98 5,002,242
11,000,000 5.682% . . . . . . . . . . . . . . . . . . . . . . . . . . . 10/16/98 10,996,442
5,000,000 5.579% . . . . . . . . . . . . . . . . . . . . . . . . . . . 01/27/99 4,998,840
6,000,000 5.415% . . . . . . . . . . . . . . . . . . . . . . . . . . . 02/10/99 5,996,147
10,000,000 5.570% . . . . . . . . . . . . . . . . . . . . . . . . . . . 03/09/99 9,996,912
9,000,000 5.650% . . . . . . . . . . . . . . . . . . . . . . . . . . . 04/09/99 8,997,778
- --------------------------------------------------------------------------------------------------------------
95,984,957
- --------------------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) NOTES - 1.3%
7,666,000 Discount note. . . . . . . . . . . . . . . . . . . . . . . . 05/08/98 7,657,953
- --------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) NOTES - 4.4%
8,000,000 5.573% + . . . . . . . . . . . . . . . . . . . . . . . . . . 05/05/98++ 7,996,032
4,000,000 5.710% . . . . . . . . . . . . . . . . . . . . . . . . . . . 06/23/98 3,999,140
5,000,000 5.660% . . . . . . . . . . . . . . . . . . . . . . . . . . . 11/20/98 4,996,412
8,000,000 5.630% . . . . . . . . . . . . . . . . . . . . . . . . . . . 05/05/99 7,995,392
- --------------------------------------------------------------------------------------------------------------
24,986,976
- --------------------------------------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION (SLMA) NOTES - 5.1%
8,000,000 5.263% + . . . . . . . . . . . . . . . . . . . . . . . . . . 05/05/98++ 8,000,000
4,000,000 5.850% . . . . . . . . . . . . . . . . . . . . . . . . . . . 06/10/98 3,999,693
17,000,000 5.400% . . . . . . . . . . . . . . . . . . . . . . . . . . . 02/10/99 16,979,395
- --------------------------------------------------------------------------------------------------------------
28,979,088
- --------------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (Cost $168,609,671) 168,609,671
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS GOVERNMENT RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS - 69.7%
$ 11,000,000 Agreement with ABN-AMRO,
5.550% dated 04/30/98 to be repurchased at $11,001,696
on 05/01/98, collateralized by $13,626,000 U.S. Treasury Strips
Principal Only, due 05/15/98 - 11/30/02
(value $11,220,260). . . . . . . . . . . . . . . . . . . . . . . . . $ 11,000,000
28,000,000 Agreement with Bear Stearns & Co., Inc.,
5.580% dated 04/30/98 to be repurchased at $28,004,340
on 05/01/98, collateralized by $29,360,770 GNMA,
7.000% - 7.375% due 04/20/24 - 03/15/28 (value $30,220,065). . . . . 28,000,000
141,000,000 Agreement with BZW Securities Corp.,
5.580% dated 04/30/98 to be repurchased at $141,021,855 on
05/01/98, collateralized by $143,185,000 U.S. Government Agency
Securities, 0.000% - 8.150% due 05/11/98 - 04/23/03
(value $143,820,949) . . . . . . . . . . . . . . . . . . . . . . . . 141,000,000
140,736,000 Agreement with CS First Boston Corp.,
5.570% dated 04/30/98 to be repurchased at $140,757,775
on 05/01/98, collateralized by $140,736,000 U.S. Government Agency
Securities 0.000% - 8.900% due 12/10/98 - 04/25/08
(value $146,094,916) . . . . . . . . . . . . . . . . . . . . . . . . 140,736,000
28,000,000 Agreement with J.P. Morgan & Co.,
5.570% dated 04/30/98 to be repurchased at $28,004,332
on 05/01/98, collateralized by $27,719,619 GNMA, 7.500%
due 6/15/26 - 01/15/28 (value $28,560,000) . . . . . . . . . . . . . 28,000,000
28,000,000 Agreement with Salomon Smith Barney, Inc.,
5.570% dated 04/30/98 to be repurchased at $28,004,332
on 05/01/98, collateralized by $34,014,840 GNMA, 5.500% -
8.500% due 08/15/08 - 12/15/27 (value $28,560,000) . . . . . . . . . 28,000,000
19,000,000 Agreement with West Deutschlandesbank,
5.570% dated 04/30/98 to be repurchased at $19,002,940
on 05/01/98, collateralized by $19,271,330 GNMA, 7.000%
due 07/20/24 (value $19,681,114) . . . . . . . . . . . . . . . . . . 19,000,000
- --------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $395,736,000). . . . . . . . . . . 395,736,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Shares NATIONS GOVERNMENT RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MONEY MARKET FUND - 2.0% (COST $11,323,000)
11,323,000 Dreyfus Treasury Cash Management Fund. . . . . . . . . . . . . . . . . $ 11,323,000
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $575,668,671*) . . . . . . . . . . . . .101.3% 575,668,671
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET). . . . . . . . . . . . . . . (1.3)%
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,769,043
Payable for investment securities. . . . . . . . . . . . . . . . . . . (7,995,392)
Dividends payable. . . . . . . . . . . . . . . . . . . . . . . . . . . (1,151,789)
Shareholder servicing and distribution fees payable . . . . . . . . . (93,504)
Investment advisory fee payable . . . . . . . . . . . . . . . . . . . (51,886)
Accrued Trustees' fees and expenses . . . . . . . . . . . . . . . . . (20,030)
Custodian fees payable . . . . . . . . . . . . . . . . . . . . . . . . (6,480)
Administration fee payable . . . . . . . . . . . . . . . . . . . . . . (5,521)
Accrued expenses and other payables. . . . . . . . . . . . . . . . . . (70,483)
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET) . . . . . . . . . . . . . . . (7,626,042)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . .100.0% $ 568,042,629
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($190,606,901 DIVIDED BY 190,607,352 shares outstanding) . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Liquidity Class Shares:
($32,773,124 DIVIDED BY 32,773,194 shares outstanding) . . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Adviser Class Shares:
($70,163,919 DIVIDED BY 70,164,071 shares outstanding) . . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Market Class Shares:
($274,498,685 DIVIDED BY 274,500,010 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.
- --------------------------------------------------------------------------------------------------------------
AT APRIL 30, 1998, NET ASSETS CONSIST OF:
Accumulated net realized gain on investments sold. . . . . . . . . . . $ (1,209)
Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . 568,043,838
- --------------------------------------------------------------------------------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 568,042,629
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES - 100.1%
ALABAMA - 5.6%
Alabama (State of), Housing Finance Authority Revenue,
(Multi-Family Housing-SKI III A), (AmSouth Bank of
Alabama LOC),
$ 6,100,000 4.100% due 03/01/15++. . . . . . . . . . . . . . . . . . . . . . . . $ 6,100,000
Arab, Alabama, Industrial Development Board, IDR,
(Syncro Corp. Project), AMT,
(SouthTrust Bank of Alabama LOC),
1,010,000 4.650% due 06/01/02++(a) . . . . . . . . . . . . . . . . . . . . . . 1,010,000
Foley, Alabama, Industrial Development Board, IDR,
(Vulcan Inc. Project),
(AmSouth Bank of Alabama LOC),
1,600,000 4.300% due 12/01/00++(a) . . . . . . . . . . . . . . . . . . . . . . 1,600,000
North, Alabama, Environmental Improvement Authority, PCR,
(Reynolds Metals Co.), (Bank of Nova Scotia LOC),
600,000 4.250% due 12/01/00+ . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Phoenix (County of), Alabama, Industrial Development Board:
(Georgia Kraft Project), (Deutsche Bank A.G. LOC),
3,000,000 4.200% due 12/01/15+ . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
(Mead Coated Board Project), (Toronto Dominion Bank LOC),
1,100,000 4.300% due 06/01/28+ . . . . . . . . . . . . . . . . . . . . . . . . 1,100,000
Stevenson, Alabama, Industrial Development Board,
(Mead Corp. Project), (Credit Suisse First Boston LOC),
500,000 4.250% due 11/01/16+ . . . . . . . . . . . . . . . . . . . . . . . . 500,000
- --------------------------------------------------------------------------------------------------------------
13,910,000
- --------------------------------------------------------------------------------------------------------------
ARIZONA - 1.7%
Arizona (State of), Educational Loan Marketing Corp.,
Educational Loan Revenue, (Refunding Series A),
(Guaranteed Student Loans),
3,250,000 6.550% due 03/01/99. . . . . . . . . . . . . . . . . . . . . . . . . 3,324,054
Pinal (County of), Arizona, Industrial Development Authority,
PCR, (Magma Copper Co. Project),
(Banque Nationale de Paris LOC),
1,000,000 4.100% due 12/01/11+ . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000
- --------------------------------------------------------------------------------------------------------------
4,324,054
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA - 1.3%
California (State of), Higher Education Loan (Sallie Mae Insured),
$ 2,000,000 4.000% due 07/01/98. . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000
San Diego, California, IDR, . . . . . . . . . . . . . . . . . . . . .
(Kaiser Aerospace and Electrical Project), Series A, AMT,
(ABN-AMRO Bank LOC),
1,200,000 4.100% due 10/01/07++. . . . . . . . . . . . . . . . . . . . . . . . 1,200,000
- --------------------------------------------------------------------------------------------------------------
3,200,000
- --------------------------------------------------------------------------------------------------------------
COLORADO - 4.6%
Colorado (State of), Health Facilities Authority Revenue,
(Goodwill Industries), (Bank One of Denver LOC),
1,485,000 4.150% due 12/01/04++(a) . . . . . . . . . . . . . . . . . . . . . . 1,485,000
Colorado (State of), Post Secondary Educational Authority,
Economic Development Revenue, (U.S. Swimming),
(Banc One of Denver LOC),
1,340,000 4.150% due 06/01/11++(a) . . . . . . . . . . . . . . . . . . . . . . 1,340,000
Colorado (State of), Student Obligation Authority,
Student Loan Revenue, (Student Loan Marketing Association LOC):
Series C,
3,600,000 4.000% due 08/01/00++. . . . . . . . . . . . . . . . . . . . . . . . 3,600,000
AMT, Series B,
2,000,000 4.100% due 07/01/20++. . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
Larimer (County of), Colorado, IDR,
(Ultimate Support System Project), Series A,
(Bank One of Denver LOC),
1,095,000 4.150% due 06/01/10++(a) . . . . . . . . . . . . . . . . . . . . . . 1,095,000
Pitkin (County of) Colorado, IDR,
(Aspen Skiing Co., Project-Series A),
(First National Bank of Chicago LOC),
2,000,000 4.250% due 04/01/16+(a). . . . . . . . . . . . . . . . . . . . . . . 2,000,000
- --------------------------------------------------------------------------------------------------------------
11,520,000
- --------------------------------------------------------------------------------------------------------------
DELAWARE - 1.2%
Delaware State, Economic Development Authority, IDR, (Star Enterprise),
(Delaware Clean Power Project), Series C, (Canadian Imperial Bank
LOC), AMT,
3,000,000 4.200% due 08/01/29 +. . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
DISTRICT OF COLUMBIA - 0.8%
District of Columbia, GO, (Georgetown University), Series D,
(Bayerische Landesbank LOC),
$ 2,100,000 4.050% due 04/01/17++. . . . . . . . . . . . . . . . . . . . . . . . $ 2,100,000
- --------------------------------------------------------------------------------------------------------------
FLORIDA - 6.4%
Brevard (County of), Florida, Multi-family Housing Authority Revenue,
(Malabar Lakes & Park Village), Series A,
(First Bank, Minneapolis LOC),
2,775,000 4.200% due 12/01/10++. . . . . . . . . . . . . . . . . . . . . . . . 2,775,000
Florida Housing Finance Agency:
(Southpoint-Multifamily), (Chase Manhattan LOC),
1,750,000 3.850% due 11/01/98++. . . . . . . . . . . . . . . . . . . . . . . . 1,750,000
(FLTF - Multi-family- Lake-RMK) (SouthTrust Bank of Alabama LOC),
1,700,000 4.450% due 06/01/07++. . . . . . . . . . . . . . . . . . . . . . . . 1,700,000
Fort Walton Beach, Florida, I IDR,
(Burton Golf Inc. Project), AMT, (Columbus Bank & Trust Co. LOC),
1,925,000 4.400% due 10/01/11++. . . . . . . . . . . . . . . . . . . . . . . . 1,925,000
Indian River (County of), Florida, Hospital District Revenue,
(Kredietbank N.V. LOC),
7,000,000 4.100% due 10/01/15++. . . . . . . . . . . . . . . . . . . . . . . . 7,000,000
Orange (County of), Florida, Health Facilities Authority Revenue,
(Mayflower Retirement Community Project), (Rabobank
Nederland LOC),
900,000 4.100% due 03/01/18++. . . . . . . . . . . . . . . . . . . . . . . . 900,000
- --------------------------------------------------------------------------------------------------------------
16,050,000
- --------------------------------------------------------------------------------------------------------------
GEORGIA - 9.0%
Burke (County of), Georgia, Development Authority PCR,
(Georgia Power Co. Vogtle - 2nd Series),
4,900,000 4.200% due 04/01/25+ . . . . . . . . . . . . . . . . . . . . . . . . 4,900,000
Columbia (County of), Georgia, Elderly Authority,
Residential Care Facilities Revenue, (Augusta Res. Ctr. on Aging),
(SunTrust Co. Bank LOC),
4,000,000 4.150% due 01/01/21++(a) . . . . . . . . . . . . . . . . . . . . . . 4,000,000
Clayton (County of), Georgia, Multi-family Housing Revenue,
(Ten Oaks Apartments - Series F), (Barclays Bank PLC, SBPA),
(FSA Insured)
3,945,000 4.050% due 01/01/21++. . . . . . . . . . . . . . . . . . . . . . . . 3,945,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
GEORGIA (CONTINUED)
Coweta (County of), Georgia, Development Authority IDR,
(Jack Eckerd Project), (Union Bank of Switzerland LOC),
$ 1,200,000 4.250% due 03/01/09+ . . . . . . . . . . . . . . . . . . . . . . . . $ 1,200,000
Crisp County-Cordelle, Georgia, Development Authority IDR,
(Florida Seed Co. Inc. Project), AMT, (SouthTrust Bank
of Alabama LOC),
1,100,000 4.450% due 12/01/10++(a) . . . . . . . . . . . . . . . . . . . . . . 1,100,000
De Kalb (County of), Georgia, Housing Authority,
Multi-family Housing Revenue, (Cedar Creek Apartments Project),
AMT, (General Electric Capital Corp. LOC),
1,400,000 4.400% due 12/01/20++(a) . . . . . . . . . . . . . . . . . . . . . . 1,400,000
Smyrna, Georgia, Multi-family Housing Authority Revenue,
(Hills of Post Village Project), (FNMA Collateral Agreement),
6,000,000 4.150% due 06/01/25++. . . . . . . . . . . . . . . . . . . . . . . . 6,000,000
- --------------------------------------------------------------------------------------------------------------
22,545,000
- --------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.7%
Burbank, Illinois, IDR, (Service Merchandise, Inc. Project),
(Canadian Imperial Bank of Commerce LOC),
400,000 3.800% due 09/15/24++. . . . . . . . . . . . . . . . . . . . . . . . 400,000
Chicago, Illinois, O'Hare International Airport, (American Airlines, Inc.):
Series A, (Credit Suisse LOC),
1,200,000 4.250% due 12/01/17+ . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000
Series C, (Royal Bank of Canada LOC),
3,100,000 4.250% due 12/01/17+ . . . . . . . . . . . . . . . . . . . . . . . . 3,100,000
Series D, (Royal Bank of Canada LOC),
750,000 4.250% due 12/01/17+ . . . . . . . . . . . . . . . . . . . . . . . . 750,000
Kane (County of), Illinois Revenue Bond,
(Harris Trust & Savings Bank LOC)
(Glenwood School for Boys),
4,500,000 4.150% due 02/01/28++. . . . . . . . . . . . . . . . . . . . . . . . 4,500,000
Illinois (State of), Development Financial Authority Revenue,
(Northern Trust Co. LOC), (Chicago Symphony),
2,000,000 4.050% due 12/01/28++. . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
Illinois (State of), Development Financial Authority, Industrial
Development Revenue (Quality Screw & Nut Co. Project),
AMT, (NBDBank, N.A. LOC),
1,700,000 4.400% due 05/01/15++(a) . . . . . . . . . . . . . . . . . . . . . . 1,700,000
(Randolph Pickle Corp. Project), AMT,
(American National B&T N.A. LOC),
900,000 4.400% due 06/01/12++. . . . . . . . . . . . . . . . . . . . . . . . 900,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
ILLINOIS (CONTINUED)
(Unique Building Corp. Project), AMT,
(American National B&T N.A. LOC),
$ 1,800,000 4.400% due 05/01/09++. . . . . . . . . . . . . . . . . . . . . . . . $1,800,000
Illinois (State of), Education Facilities Authority Revenue:
(Arts Club of Chicago), (Northern Trust LOC),
5,200,000 4.150% due 01/01/26++. . . . . . . . . . . . . . . . . . . . . . . . 5,200,000
(Northwestern University), (NBD Bank N.A. SBPA),
1,400,000 4.200% due 12/01/25++. . . . . . . . . . . . . . . . . . . . . . . . 1,400,000
Lombard, Illinois, Multifamily Housing,
(Clover Creek Apartment Project), (Continental Casualty Co.),
2,000,000 4.000% due 10/01/13. . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
Lombard Village, Illinois, Industrial Project Revenue,
(B&H Partnership), (Comerica Bank LOC),
1,500,000 4.450% due 10/01/13++. . . . . . . . . . . . . . . . . . . . . . . . 1,500,000
- --------------------------------------------------------------------------------------------------------------
26,450,000
- --------------------------------------------------------------------------------------------------------------
INDIANA - 2.8%
Auburn, Indiana, Economic Development Revenue,
(RJ Tower Corp. Project),
AMT, (Comerica Bank LOC),
1,160,000 4.250% due 09/01/00++. . . . . . . . . . . . . . . . . . . . . . . . 1,160,000
Indiana (State of), Health Facilities Financing Authority Revenue,
(Cardinal Center), Series A, (Key Bank, N.A. LOC),
2,175,000 4.010% due 12/01/16 ++(a). . . . . . . . . . . . . . . . . . . . . . 2,175,000
Indianapolis, Indiana, Economic Development, (Edgecomb
Metals Co.), (Banque Nationale Paris LOC),
2,700,000 4.150% due 12/01/08++. . . . . . . . . . . . . . . . . . . . . . . . 2,700,000
Kendallville, Indiana, Revenue, (McCray Memorial Hospital Project),
(NBD Bank N.A. LOC),
770,000 4.010% due 01/01/04++(a) . . . . . . . . . . . . . . . . . . . . . . 770,000
Rockport, Indiana, PCR, (AEP Generating Co. Project B),
(AMBAC Insured, BONY SBPA),
265,000 4.250% due 07/01/25++. . . . . . . . . . . . . . . . . . . . . . . . 265,000
- --------------------------------------------------------------------------------------------------------------
7,070,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
KENTUCKY - 1.5%
Jefferson (County of), Kentucky, IDR,
(Belknap Inc. Project), (National City Bank LOC),
$ 1,160,000 3.750% due 12/01/14++(a) . . . . . . . . . . . . . . . . . . . . . . $ 1,160,000
Jefferson (County of), Kentucky, Industrial Building Revenue,
(Seven Counties Services, Inc. Project), (Banc One LOC),
1,520,000 4.150% due 06/01/11++(a) . . . . . . . . . . . . . . . . . . . . . . 1,520,000
Jeffersontown, Kentucky, Industrial Building Revenue,
(Raque Food System, Inc. Project), AMT, (PNC Bank LOC),
1,105,000 4.350% due 04/01/20++(a) . . . . . . . . . . . . . . . . . . . . . . 1,105,000
- --------------------------------------------------------------------------------------------------------------
3,785,000
- --------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.1%
Ascension Parish, Louisiana, PCR,
(Borden Inc. Project), (Credit Suisse First Boston LOC),
8,000,000 4.100% due 12/01/09++. . . . . . . . . . . . . . . . . . . . . . . . 8,000,000
Lake Charles, Louisiana, (Citgo Petroleum Corp.),
(Westdeutsche Landesbank LOC),
2,300,000 4.150% due 08/01/07++. . . . . . . . . . . . . . . . . . . . . . . . 2,300,000
South Louisiana, Port Community Marine Terminal Facilities Revenue,
(Occidental Petroleum), (Credit Suisse LOC),
2,300,000 4.050% due 07/01/21++. . . . . . . . . . . . . . . . . . . . . . . . 2,300,000
- --------------------------------------------------------------------------------------------------------------
12,600,000
- --------------------------------------------------------------------------------------------------------------
MARYLAND - 0.1%
Montgomery (County of), Maryland, IDR,
(Information Systems and Network Corp. Project), (PNC Bank LOC),
170,000 3.850% due 04/01/14 ++(a). . . . . . . . . . . . . . . . . . . . . . 170,000
- --------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.9%
Michigan Municipal Bond Authority Revenue Notes, Series B,
5,000,000 4.500% due 07/02/98 ++ . . . . . . . . . . . . . . . . . . . . . . . 5,005,308
University of Michigan, Medical Service Plan - Series A,
2,200,000 4.250% due 12/01/27+ . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000
- --------------------------------------------------------------------------------------------------------------
7,205,308
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
MINNESOTA - 1.0%
Minneapolis, Minnesota, Revenue, (Catholic Charities Project),
(Norwest Bank Minnesota LOC),
$ 2,530,000 4.100% due 11/01/16 ++(a). . . . . . . . . . . . . . . . . . . . . . $ 2,530,000
- --------------------------------------------------------------------------------------------------------------
MISSOURI - 5.9%
Missouri, (State of), Health & Educational Facilities Authority Revenue:
(Washington University, Series B), (Morgan Guaranty Trust SBPA)
1,900,000 4.100% due 09/01/10++. . . . . . . . . . . . . . . . . . . . . . . . 1,900,000
(St. Louis University), (FGIC Insured, Morgan Guaranty SBPA)
2,400,000 4.350% due 12/01/05++. . . . . . . . . . . . . . . . . . . . . . . . 2,400,000
(Sisters of Mercy-Ref-B), (ABN AMRO & RABOBANK SBPA)
6,900,000 4.100% due 06/01/14++. . . . . . . . . . . . . . . . . . . . . . . . 6,900,000
Missouri, (State of), Health & Educational Facilities Authority Revenue,
(School District Advance Funding Program),
3,400,000 4.500% due 09/14/98. . . . . . . . . . . . . . . . . . . . . . . . . 3,407,280
- --------------------------------------------------------------------------------------------------------------
14,607,280
- --------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0%
Flowood, Mississippi, IDR,
(BSC Steel Inc. Project), AMT, (PNC Bank LOC),
2,500,000 4.350% due 11/01/01++(a) . . . . . . . . . . . . . . . . . . . . . . 2,500,000
- --------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9%
Douglas (County of), Nebraska, School District #017 Milliard, BAN,
2,250,000 4.250% due 01/15/99. . . . . . . . . . . . . . . . . . . . . . . . . 2,256,195
- --------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.1%
Cabarrus (County of), North Carolina, Industrial Facilities &
Pollution Control, (Philip Morris Co. Project),
5,000,000 4.250% due 04/01/01++. . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
- --------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.4%
Dona Ana (County of), New Mexico, IDR,
(Foamex Products Inc Project), (Bank of Nova Scotia LOC),
5,900,000 4.150% due 11/01/13++(a) . . . . . . . . . . . . . . . . . . . . . . 5,900,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
OHIO - 6.4%
Centerville, Ohio, Health Care Revenue,
(Bethany Lutheran Village Project), (PNC Bank of Ohio LOC),
$ 960,000 4.150% due 11/01/13++(a) . . . . . . . . . . . . . . . . . . . . . . $ 960,000
Cuyahoga (County of), Ohio, IDR,
(Pleasant Lake Project), (Key Bank, N.A. LOC),
915,000 4.230% due 05/01/11++(a) . . . . . . . . . . . . . . . . . . . . . . 915,000
Greene (County of), Ohio, IDR,
(AFC Stamping Project), AMT, (Key Bank, N.A. LOC),
1,000,000 4.380% due 09/01/16++(a) . . . . . . . . . . . . . . . . . . . . . . 1,000,000
Lucas (County of), Ohio, IDR,
(Dynamic Dies Inc., Project), (National City Bank LOC),
2,130,000 4.350% due 07/01/09++(a) . . . . . . . . . . . . . . . . . . . . . . 2,130,000
Ohio (State of), Housing Finance Agency, Multi-family Housing Revenue,
(Kenwood Congregate Retirement Community,)
(Morgan Guaranty Trust Co. LOC),
2,279,000 3.600% 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),
2,300,000 4.300% due 12/01/15++. . . . . . . . . . . . . . . . . . . . . . . . 2,300,000
Ottawa (County of), Ohio, BAN,
4,000,000 4.125% due 08/06/98. . . . . . . . . . . . . . . . . . . . . . . . . 4,002,551
Summit (County of), Ohio, IDR, (Oliver Printing Project),
AMT, (Bank One Akron LOC),
1,350,000 4.250% due 02/01/07++(a) . . . . . . . . . . . . . . . . . . . . . . 1,350,000
Toledo-Lucas (County of), Ohio, Port Authority Facilities
Improvement Revenue,
(Young Men's Christian Association), (Fifth Third Bank LOC),
1,075,000 4.000% due 12/01/21++(a) . . . . . . . . . . . . . . . . . . . . . . 1,075,000
- --------------------------------------------------------------------------------------------------------------
16,011,551
- --------------------------------------------------------------------------------------------------------------
OREGON - 2.1%
Oregon (State of), Housing & Community Services Department
Mortgage Revenue, (Single Family Mortgage PG-Series J),
4,595,000 3.850% due 12/03/98. . . . . . . . . . . . . . . . . . . . . . . . . 4,595,000
Port of Portland, Oregon, Special Obligation Revenue,
(Horizon Air Industries Inc. Project), (Bank of Montreal LOC),
700,000 4.300% due 06/15/27+ . . . . . . . . . . . . . . . . . . . . . . . . 700,000
- --------------------------------------------------------------------------------------------------------------
5,295,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
PENNSYLVANIA - 4.2%
Elk (County of), Pennsylvania, IDR, (Clarion Project), AMT,
(PNC Bank, N.A. LOC),
$ 3,100,000 4.200% due 03/01/09++(a) . . . . . . . . . . . . . . . . . . . . . . $ 3,100,000
Philadelphia, Pennsylvania, School District, TRAN,
(Commerzbank A.G. LOC),
4,000,000 4.500% due 06/30/98. . . . . . . . . . . . . . . . . . . . . . . . . 4,003,319
Pennsylvania (State of), Higher Education Facilities Authority Revenue,
(Carnegie Mellon University - C), (USB or Morgan SBPA),
1,200,000 4.250% due 11/01/29++. . . . . . . . . . . . . . . . . . . . . . . . 1,200,000
Schuylkill (County of), Pennsylvania, Industrial Development Authority
Revenue, (PNC Bank, N.A. LOC):
(Bon-Ton Stores Project), AMT,
1,240,000 4.200% due 02/01/12++(a) . . . . . . . . . . . . . . . . . . . . . . 1,240,000
(Grubacher & Son Project),
1,000,000 4.350% due 02/01/12++(a) . . . . . . . . . . . . . . . . . . . . . . 1,000,000
- --------------------------------------------------------------------------------------------------------------
10,543,319
- --------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.9%
Cherokee (County of), South Carolina, IDR,
(Holmberg Electric Corp. Project), (Wachovia Bank LOC),
1,000,000 4.550% due 11/01/04++(a) . . . . . . . . . . . . . . . . . . . . . . 1,000,000
South Carolina (State of), Jobs, Economic Development Authority
Revenue:
(Chambers Oakridge Landfill), AMT,
(Morgan Guaranty Trust Co. LOC),
1,300,000 4.350% due 12/01/01++(a) . . . . . . . . . . . . . . . . . . . . . . 1,300,000
(Spartanburg Young Men's Project),
(First Union National Bank LOC),
1,800,000 4.150% due 06/01/18++(a) . . . . . . . . . . . . . . . . . . . . . . 1,800,000
York (County of), South Carolina, PCR, (Guaranty Agreement
with National Rural Utilities Cooperative Finance Corp.),
700,000 4.100% due 09/15/14++. . . . . . . . . . . . . . . . . . . . . . . . 700,000
- --------------------------------------------------------------------------------------------------------------
4,800,000
- --------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3%
South Dakota (State of), Economic Development Finance Authority,
IDR, (Lomar Development Co. Project),
Series B, AMT, (U.S. Bank, N.A. LOC),
830,000 4.400% due 08/01/08++(a) . . . . . . . . . . . . . . . . . . . . . . 830,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
TENNESSEE - 1.7%
Jefferson City, Tennessee, Industrial Development Board,
(BA Property Project), AMT, (American National B&T LOC),
$ 1,265,000 4.300% due 11/01/24++(a) . . . . . . . . . . . . . . . . . . . . . . $ 1,265,000
Metropolitan Nashville, Tennessee, Airport Authority Special Facilities
Revenue, (American Airlines, Inc., Project-Series B), (Bayerische
Lankesbank LOC),
300,000 4.250% due 10/01/12+ . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Metropolitan Nashville and Davidson (County of), Tennessee,
(Vanderbilt University),
1,005,000 3.950% due 05/01/98. . . . . . . . . . . . . . . . . . . . . . . . . 1,005,000
Springfield, Tennessee,Industrial Development Board,
All American Homes of Tennessee, AMT, (NBD Bank N.A. LOC),
1,700,000 4.400% due 11/15/09++(a) . . . . . . . . . . . . . . . . . . . . . . 1,700,000
- --------------------------------------------------------------------------------------------------------------
4,270,000
- --------------------------------------------------------------------------------------------------------------
TEXAS - 9.5%
Angelina & Neches River Authority, Texas Industrial Development
Corp., (Solid Waste Revenue Project), (Credit Suisse LOC),
2,500,000 4.250% due 05/01/14+ . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000
Grapevine, Texas, Industrial Development Corp. Revenue,
(American Airlines, Series A1), (Morgan Guaranty Trust LOC),
300,000 4.250% due 12/01/24+ . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Harris (County of ), Texas, Health Facilities Development Corp.,
Hospital Revenue, (Methodist Hospital), (Morgan Guaranty SBPA),
3,400,000 4.250% due 12/01/25+ . . . . . . . . . . . . . . . . . . . . . . . . 3,400,000
Houston, Texas, TRAN,
5,000,000 4.500% due 06/30/98. . . . . . . . . . . . . . . . . . . . . . . . . 5,005,143
Lone Star, Texas, Airport Improvement Authority,
(Royal Bank of Canada LOC):
(American Airlines, Inc. DEM-A-1),
2,200,000 4.250% due 12/01/14+ . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000
(American Airlines, Inc. DEM-A-2),
300,000 4.250% due 12/01/14+ . . . . . . . . . . . . . . . . . . . . . . . . 300,000
(American Airlines, Inc. DEM-B-2),
300,000 4.250% due 12/01/14+ . . . . . . . . . . . . . . . . . . . . . . . . 300,000
(American Airlines, Inc. DEM-B-4),
1,600,000 4.250% due 12/01/14+ . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000
McAllen, Texas, Health Facilities Development Corp. Revenue,
(McAllen Associate No. 1), (PNC Bank LOC),
4,300,000 4.200% due 12/01/24++. . . . . . . . . . . . . . . . . . . . . . . . 4,300,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
TEXAS (CONTINUED)
Nueces (County of), Texas, Health Facilities Development
Corp. Revenue, (Driscoll Foundation Children's Project)
(Bank One of Texas LOC),
$ 1,200,000 4.100% due 07/01/15++. . . . . . . . . . . . . . . . . . . . . . . . $ 1,200,000
Trinity River, Texas, Industrial Development Authority, IDR,
(Toys 'R' Us Project), Series 1994, (Bankers Trust Co. LOC),
1,000,000 4.525% due 11/01/14++(a) . . . . . . . . . . . . . . . . . . . . . . 1,000,000
West Side Calhoun (County of), Texas, Development
Authority Revenue, (Sohio Chemical Corp. Project),
1,600,000 4.250% due 12/01/15+ . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000
- --------------------------------------------------------------------------------------------------------------
23,705,143
- --------------------------------------------------------------------------------------------------------------
VIRGINIA - 3.0%
Albemarle (County of),Virginia, Industrial Development Authority, Health
Services Revenue, (University of Virginia Services Foundation),
(First Union National Bank (North Carolina) LOC),
5,800,000 4.100% due 02/01/26++. . . . . . . . . . . . . . . . . . . . . . . . 5,800,000
Winchester, Virginia, Industrial Development Authority Revenue,
(Midwesco Filter), (Harris Trust & Savings Bank LOC),
1,575,000 4.450% due 08/01/07++. . . . . . . . . . . . . . . . . . . . . . . . 1,575,000
- --------------------------------------------------------------------------------------------------------------
7,375,000
- --------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.3%
Port Skagit (County of), Washington, Industrial Development Authority
Revenue, (Cascade Clear Water Co. Project), AMT,
(Key Bank of Washington LOC),
800,000 4.380% due 12/01/20++(a) . . . . . . . . . . . . . . . . . . . . . . 800,000
- --------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.6%
Ohio (County of), West Virginia, IDR, (Ohio Valley Clarksburg Drug
Co. Project), (PNC Bank LOC), AMT,
1,600,000 3.800% due 12/01/01++(a) . . . . . . . . . . . . . . . . . . . . . . 1,600,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount NATIONS MUNICIPAL RESERVES Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
WISCONSIN - 2.7%
Appleton, Wisconsin, Area School District, BAN,
$ 2,760,000 4.050% due 11/10/1998. . . . . . . . . . . . . . . . . . . . . . . . $ 2,762,153
Milwaukee, Wisconsin, IDR,
(Mandel Co. Project), AMT, (First Bank LOC),
940,000 3.900% due 04/01/07++. . . . . . . . . . . . . . . . . . . . . . . . 940,000
Waukesha, Wisconsin, School District, TRAN,
3,000,000 4.100% due 08/21/98. . . . . . . . . . . . . . . . . . . . . . . . . 3,001,768
- --------------------------------------------------------------------------------------------------------------
6,703,921
- --------------------------------------------------------------------------------------------------------------
WYOMING - 0.4%
Sublette (County of), Wyoming, PCR, (Exxon Project Series-A),
(Guaranty Agreement with Exxon Corp.),
900,000 4.300% due 07/01/17+(a). . . . . . . . . . . . . . . . . . . . . . . 900,000
- --------------------------------------------------------------------------------------------------------------
Total Municipal Bonds and Notes (Cost $249,556,771) . . . . . . . . 249,556,771
- --------------------------------------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS - 0.4%
50,000 AIM Tax-Exempt Fund. . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
1,025,000 Federated Tax-Exempt Fund. . . . . . . . . . . . . . . . . . . . . . . 1,025,000
- --------------------------------------------------------------------------------------------------------------
Total Money Market Funds (Cost $1,075,000) . . . . . . . . . . . . . 1,075,000
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $250,631,771*). . . . . . . . . . . . . 100.5% $ 250,631,771
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET). . . . . . . . . . . . . . . (0.5)%
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,085,902
Payable for investment securities purchased . . . . . . . . . . . . . (2,862,201)
Dividends payable. . . . . . . . . . . . . . . . . . . . . . . . . . . (440,478)
Shareholder servicing and distribution fees payable . . . . . . . . . (39,993)
Investment advisory fee payable . . . . . . . . . . . . . . . . . . . (23,354)
Accrued Trustees' fees and expenses. . . . . . . . . . . . . . . . . . (11,544)
Custodian fees payable . . . . . . . . . . . . . . . . . . . . . . . . (2,839)
Administration fee payable . . . . . . . . . . . . . . . . . . . . . . (2,403)
Accrued expenses and other payables. . . . . . . . . . . . . . . . . . (74,645)
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (NET) . . . . . . . . . . . . . . . (1,371,555)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $ 249,260,216
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED) NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Capital Class Shares:
($74,251,435 DIVIDED BY 74,251,778 shares outstanding) . . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Liquidity Class Shares:
($53,073,553 DIVIDED BY 53,073,798 shares outstanding) . . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Adviser Class Shares:
($29,935,644 DIVIDED BY 29,935,782 shares outstanding) . . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Market Class Shares:
($91,999,584 DIVIDED BY 92,000,010 shares outstanding) . . . . . . . . $ 1.00
- --------------------------------------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes payable upon not more than one business day's notice. The interest rate
shown reflects the rate currently in effect.
++ Variable rate demand notes payable upon not more than seven calendar days' notice. The interest rate
shown reflects the rate currently in effect.
(a) Securities are not registered under the Securities Act of 1933. These securities may be resold in
transactions exempt from registration to qualified institutional buyers.
Nations Municipal Reserves had the following industry concentrations greater than 10% at April 30,
1998 (as a percentage of net assets) (unaudited):
Hospital Revenue 14.6%
Housing Revenue 13.7
Education Revenue 13.5
Transportation Revenue 10.2
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENT OF NET ASSETS NATIONS INSTITUTIONAL RESERVES
April 30, 1998
<TABLE>
<CAPTION>
NATIONS MUNICIPAL RESERVES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ABBREVIATIONS:
AMT -- Alternative Minimum Tax
BAN -- Bond Anticipation Notes
FGIC -- Financial Guaranty Insurance Company
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance Inc.
GO -- General Obligation Bonds
IDR -- Industrial Development Revenue
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 APRIL 30, 1998, NET ASSETS CONSIST OF:
Accumulated net realized loss on investment sold . . . . . . . . . . $ (1,152)
Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . 249,261,368
- --------------------------------------------------------------------------------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 249,260,216
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENT OF OPERATIONS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1998
<TABLE>
<CAPTION>
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest. . . . . . . . . . . . . . . . . . . . $ 205,144,487 $ 51,320,613 $ 25,988,737 $ 9,031,812
Dividends . . . . . . . . . . . . . . . . . . . 10,550,254 2,100,213 597,501 158,305
- --------------------------------------------------------------------------------------------------------------
Total Investment Income . . . . . . . . . . . 215,694,741 53,420,826 26,586,238 9,190,117
- --------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fee . . . . . . . . . . . . 11,266,127 2,856,961 1,417,467 736,184
Administration fee. . . . . . . . . . . . . . . 3,755,376 952,320 472,489 245,395
Transfer agent fees . . . . . . . . . . . . . . 55,364 100,761 45,073 40,984
Custodian fees . . . . . . . . . . . . . . . . 212,133 100,818 42,372 23,898
Trustees' fees and expenses . . . . . . . . . . 93,862 17,556 12,162 6,943
Registration and filing fees. . . . . . . . . . 632,250 101,695 99,193 69,118
Legal and audit fees. . . . . . . . . . . . . . 67,350 28,752 11,366 12,284
Interest expense . . . . . . . . . . . . . . . 11,433 -- -- 48,371
Other . . . . . . . . . . . . . . . . . . . . . 249,558 98,290 18,484 2,102
- --------------------------------------------------------------------------------------------------------------
Subtotal. . . . . . . . . . . . . . . . . . . 16,343,453 4,257,153 2,118,606 1,185,279
Shareholder servicing and distribution fees:
Capital Class Shares. . . . . . . . . . . . . -- -- -- --
Liquidity Class Shares. . . . . . . . . . . . 4,672,775 2,272,260 288,377 455,083
Adviser Class Shares. . . . . . . . . . . . . 1,293,612 606,210 117,013 73,041
Market Class Shares . . . . . . . . . . . . . 2,185,988 913,585 1,013,039 432,392
Fees waived and/or reimbursed by investment
adviser, administrator and/or distributor . . (13,155,209) (4,475,950) (1,636,234) (1,116,986)
- --------------------------------------------------------------------------------------------------------------
Net Expenses. . . . . . . . . . . . . . . . . 11,340,619 3,573,258 1,900,801 1,028,809
- --------------------------------------------------------------------------------------------------------------
Net Investment Income . . . . . . . . . . . 204,354,122 49,847,568 24,685,437 8,161,308
- --------------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments. . . . . . . 30,016 -- -- --
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting From Operations . . . . . . . . . $ 204,384,138 $ 49,847,568 $ 24,685,437 $ 8,161,308
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1998
NATIONS TREASURY RESERVES
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating and investing activities:
Investment income received . . . . . . . . . . . . . . . . . . . . . . . $ 48,931,684
Dividend income received . . . . . . . . . . . . . . . . . . . . . . . . 2,007,705
Payment of operating expenses. . . . . . . . . . . . . . . . . . . . . . (3,291,080)
Net proceeds from reverse repurchase agreements outstanding. . . . . . . 57,775,000
Net purchases of short-term investments. . . . . . . . . . . . . . . . . (704,245,311)
- --------------------------------------------------------------------------------------------------------------
Cash used by operating and investing activities . . . . . . . . . . . . . . $(598,822,002)
Cash flows from financing activities:
Proceeds from shares sold. . . . . . . . . . . . . . . . . . . . . . . . 8,168,860,089
Payments on shares redeemed. . . . . . . . . . . . . . . . . . . . . . . (7,544,434,253)
Distributions paid*. . . . . . . . . . . . . . . . . . . . . . . . . . . (25,451,566)
- --------------------------------------------------------------------------------------------------------------
Cash provided by financing activities . . . . . . . . . . . . . . . . . . . 598,974,270
- --------------------------------------------------------------------------------------------------------------
Increase in cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,268
Cash at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . (152,042)
- --------------------------------------------------------------------------------------------------------------
Cash at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 226
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
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. . . . . . . . . . . . $ 49,847,568
Increase in investments. . . . . . . . . . . . . . . . . . . . . . . . . $ (705,532,187)
Increase in payable for reverse repurchase agreement transactions. . . . 57,775,000
Increase in interest and dividends receivable. . . . . . . . . . . . . . (1,194,561)
Increase in other assets . . . . . . . . . . . . . . . . . . . . . . . . (21,943)
Increase in accrued expenses and other payables. . . . . . . . . . . . . 304,121
- --------------------------------------------------------------------------------------------------------------
Cash used by operating and investing activities . . . . . . . . . . . . . . $(598,822,002)
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-cash activities include reinvestment of dividends of $25,095,375.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1998
NATIONS NATIONS NATIONS NATIONS
CASH TREASURY GOVERNMENT MUNICIPAL
RESERVES RESERVES RESERVES RESERVES
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income. . . . . . . . . . . . . . . . . . . . $ 204,354,122 $ 49,847,568 $ 24,685,437 $ 8,161,308
Net realized gain on investments . . . . . . . . . . . . . . 30,016 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations . . . . 204,384,138 49,847,568 24,685,437 8,161,308
Distributions to shareholders from net investment income:
Capital Class Shares. . . . . . . . . . . . . . . . . . (122,110,028) (13,736,096) (9,042,264) (2,352,169)
Liquidity Class Shares. . . . . . . . . . . . . . . . . (29,596,913) (13,289,592) (1,783,594) (1,797,755)
Adviser Class Shares. . . . . . . . . . . . . . . . . . (27,433,020) (12,529,447) (2,426,626) (948,244)
Market Class Shares . . . . . . . . . . . . . . . . . . (25,214,161) (10,292,433) (11,432,953) (3,063,140)
Net increase in net assets from
shares of beneficial interest transactions: . . . . . . . 2,796,683,681 649,521,211 192,840,017 49,286,549
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets . . . . . . . . . . . . . . . . . 2,796,713,697 649,521,211 192,840,017 49,286,549
Net assets:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . 2,684,634,218 828,201,828 375,202,612 199,973,667
- ----------------------------------------------------------------------------------------------------------------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . $5,481,347,915 $1,477,723,039 $ 568,042,629 $ 249,260,216
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS NATIONS INSTITUTIONAL RESERVES
For the Year Ended April 30, 1998
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):
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.
33
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Share Outstanding of each class of Nations Cash Reserves throughout each period.
YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
4/30/98 4/30/97 4/30/96 4/30/95 4/30/94
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income
Capital Class . . . . . . . . . . . . . . . . 0.0554 0.0531 0.0570 0.0480 0.0283
Liquidity Class . . . . . . . . . . . . . . . 0.0539 0.0516 0.0555 0.0471 0.0273
Adviser Class* . . . . . . . . . . . . . . . . 0.0529 0.0506 0.0545 0.0316 --
Market Class* . . . . . . . . . . . . . . . . 0.0519 0.0493 -- -- --
Dividends from net investment income
Capital Class . . . . . . . . . . . . . . . . (0.0554) (0.0531) (0.0570) (0.0480) (0.0283)
Liquidity Class . . . . . . . . . . . . . . . (0.0539) (0.0516) (0.0555) (0.0471) (0.0273)
Adviser Class* . . . . . . . . . . . . . . . . (0.0529) (0.0506) (0.0545) (0.0316) --
Market Class* . . . . . . . . . . . . . . . . (0.0519) (0.0493) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class* . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Return++
Capital Class. . . . . . . . . . . . . . . . . 5.70% 5.44% 5.84% 4.91% 2.87%
Liquidity Class. . . . . . . . . . . . . . . . 5.53% 5.28% 5.70% 4.81% 2.77%
Adviser Class* . . . . . . . . . . . . . . . . 5.43% 5.19% 5.58% 3.20% --
Market Class*. . . . . . . . . . . . . . . . . 5.33% 5.04% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (000s)
Capital Class. . . . . . . . . . . . . . . . . $3,051,559 $1,684,233 $607,643 $134,064 $109,852
Liquidity Class. . . . . . . . . . . . . . . . 1,107,869 419,851 35,477 2 69,786
Adviser Class* . . . . . . . . . . . . . . . . 672,417 247,551 397,809 47,682 --
Market Class*. . . . . . . . . . . . . . . . . 649,503 333,000 -- -- --
Ratio of operating expenses to average net assets
Capital Class. . . . . . . . . . . . . . . . . 0.20%** 0.20% 0.20% 0.29% 0.45%
Liquidity Class. . . . . . . . . . . . . . . . 0.35%** 0.35% 0.35% 0.38% 0.55%
Adviser Class* . . . . . . . . . . . . . . . . 0.45%** 0.45% 0.45% 0.54%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.55%** 0.55%+ -- -- --
Ratio of net investment income to average net assets
Capital Class. . . . . . . . . . . . . . . . . 5.54% 5.32% 5.53% 4.96% 2.83%
Liquidity Class. . . . . . . . . . . . . . . . 5.39% 5.17% 5.38% 4.87% 2.74%
Adviser Class* . . . . . . . . . . . . . . . . 5.29% 5.07% 5.28% 4.71%+ --
Market Class*. . . . . . . . . . . . . . . . . 5.19% 4.97%+ -- -- --
Ratio of operating expenses to average net assets
without waivers
Capital Class. . . . . . . . . . . . . . . . . 0.44% 0.45% 0.51% 0.52% 0.56%
Liquidity Class. . . . . . . . . . . . . . . . 1.29% 0.60% 0.66% 0.61% 0.65%
Adviser Class* . . . . . . . . . . . . . . . . 0.69% 0.70% 0.76% 0.77%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.89% 0.80%+ -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The commencement dates of the Classes of Shares of the Portfolios are as
follows:
Nations Cash Reserves Adviser Class - September 22, 1994.
Nations Cash Reserves Market Class - May 3, 1996.
** The effect of interest expense on the operating expense ratio was less than
0.01%.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Share Outstanding of each class of Nations Treasury Reserves throughout each period
YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
4/30/98 4/30/97 4/30/96 4/30/95 4/30/94
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income
Capital Class. . . . . . . . . . . . . . . . . 0.0541 0.0519 0.0556 0.0480 0.0298
Liquidity Class. . . . . . . . . . . . . . . . 0.0526 0.0504 0.0541 0.0462 0.0263
Adviser Class* . . . . . . . . . . . . . . . . 0.0516 0.0494 0.0531 0.0308 --
Market Class*. . . . . . . . . . . . . . . . . 0.0505 0.0481 -- -- --
Dividends from net investment income
Capital Class. . . . . . . . . . . . . . . . . (0.0541) (0.0519) (0.0556) (0.0480) (0.0298)
Liquidity Class. . . . . . . . . . . . . . . . (0.0526) (0.0504) (0.0541) (0.0462) (0.0263)
Adviser Class* . . . . . . . . . . . . . . . . (0.0516) (0.0494) (0.0531) (0.0308) --
Market Class*. . . . . . . . . . . . . . . . . (0.0505) (0.0481) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Total Return++
Capital Class. . . . . . . . . . . . . . . . . 5.55% 5.30% 5.71% 4.91% 3.02%
Liquidity Class. . . . . . . . . . . . . . . . 5.38% 5.15% 5.57% 4.71% 2.67%
Adviser Class* . . . . . . . . . . . . . . . . 5.28% 5.06% 5.45% 3.11% --
Market Class*. . . . . . . . . . . . . . . . . 5.18% 4.92% -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (000s)
Capital Class. . . . . . . . . . . . . . . . . $246,058 $468,975 $304,342 $251,694 $338,504
Liquidity Class. . . . . . . . . . . . . . . . 743,410 81,575 11,804 674 14,227
Adviser Class* . . . . . . . . . . . . . . . . 222,760 154,256 175,691 55,762 --
Market Class*. . . . . . . . . . . . . . . . . 265,495 123,396 -- -- --
Ratio of operating expenses to average net assets
Capital Class. . . . . . . . . . . . . . . . . 0.20% 0.20% 0.20% 0.20% 0.20%
Liquidity Class. . . . . . . . . . . . . . . . 0.35% 0.35% 0.35% 0.49% 0.55%
Adviser Class* . . . . . . . . . . . . . . . . 0.45% 0.45% 0.45% 0.45%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.55% 0.55%+ -- -- --
Ratio of net investment income to average net assets
Capital Class. . . . . . . . . . . . . . . . . 5.41% 5.20% 5.50% 4.79% 2.99%
Liquidity Class. . . . . . . . . . . . . . . . 5.26% 5.05% 5.35% 4.50% 2.67%
Adviser Class* . . . . . . . . . . . . . . . . 5.16% 4.95% 5.25% 4.54%+ --
Market Class*. . . . . . . . . . . . . . . . . 5.06% 4.85%+ -- -- --
Ratio of operating expenses to average net assets
without waivers
Capital Class. . . . . . . . . . . . . . . . . 0.45% 0.46% 0.51% 0.50% 0.52%
Liquidity Class. . . . . . . . . . . . . . . . 1.35% 0.61% 0.66% 0.79% 0.87%
Adviser Class* . . . . . . . . . . . . . . . . 0.70% 0.71% 0.76% 0.75%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.90% 0.81%+ -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The commencement dates of the Classes of Shares of the Portfolios are as
follows:
Nations Treasury Reserves Adviser Class - September 22, 1994.
Nations Treasury Reserves Market Class - May 3, 1996.
+ Annualized.
++ Total return represents aggregate total return for periods indicated.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Share Outstanding of each class of Nations Government Reserves throughout each period.
YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
4/30/98 4/30/97 4/30/96 4/30/95 4/30/94
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income
Capital Class. . . . . . . . . . . . . . . . . 0.0543 0.0520 0.0556 0.0463 0.0278
Liquidity Class. . . . . . . . . . . . . . . . 0.0528 0.0505 0.0537 0.0453 0.0268
Adviser Class* . . . . . . . . . . . . . . . . 0.0518 0.0495 0.0527 0.0299 --
Market Class*. . . . . . . . . . . . . . . . . 0.0508 0.0482 -- -- --
Dividends from net investment income
Capital Class. . . . . . . . . . . . . . . . . (0.0543) (0.0520) (0.0556) (0.0463) (0.0278)
Liquidity Class. . . . . . . . . . . . . . . . (0.0528) (0.0505) (0.0537) (0.0453) (0.0268)
Adviser Class* . . . . . . . . . . . . . . . . (0.0518) (0.0495) (0.0527) (0.0299) --
Market Class*. . . . . . . . . . . . . . . . . (0.0508) (0.0482) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Return++
Capital Class. . . . . . . . . . . . . . . . . 5.57% 5.33% 5.71% 4.72% 2.82%
Liquidity Class . . . . . . . . . . . . . . . 5.40% 5.19% 5.51% 4.59% 2.71%
Adviser Class* . . . . . . . . . . . . . . . . 5.30% 5.07% 5.39% 3.04% --
Market Class* . . . . . . . . . . . . . . . . 5.20% 4.93% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (000s)
Capital Class. . . . . . . . . . . . . . . . . $190,607 $125,377 $58,121 $2 $10,819
Liquidity Class. . . . . . . . . . . . . . . . 32,773 6,482 129 2 259,836
Adviser Class* . . . . . . . . . . . . . . . . 70,164 24,845 108,168 99,246 --
Market Class*. . . . . . . . . . . . . . . . . 274,499 218,499 -- -- --
Ratio of operating expenses to average net assets
Capital Class. . . . . . . . . . . . . . . . . 0.20% 0.20%(a) 0.20% 0.32% 0.45%
Liquidity Class. . . . . . . . . . . . . . . . 0.35% 0.35%(a) 0.35% 0.40% 0.55%
Adviser Class* . . . . . . . . . . . . . . . . 0.45% 0.45%(a) 0.45% 0.57%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.55% 0.55%+(a) -- -- --
Ratio of net investment income to average net assets
Capital Class. . . . . . . . . . . . . . . . . 5.43% 5.22% 5.48% 4.35% 2.78%
Liquidity Class. . . . . . . . . . . . . . . . 5.28% 5.07% 5.33% 4.27% 2.68%
Adviser Class* . . . . . . . . . . . . . . . . 5.18% 4.97% 5.23% 4.10%+ --
Market Class*. . . . . . . . . . . . . . . . . 5.08% 4.87%+ -- -- --
Ratio of operating expenses to average net assets
without waivers
Capital Class. . . . . . . . . . . . . . . . . 0.45% 0.49%(a) 0.53% 0.54% 0.51%
Liquidity Class. . . . . . . . . . . . . . . . 1.30% 0.64%(a) 0.68% 0.62% 0.61%
Adviser Class* . . . . . . . . . . . . . . . . 0.70% 0.74%(a) 0.78% 0.79%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.90% 0.84%+(a) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The commencement dates of the Classes of Shares of the Portfolios are as
follows:
Nations Government Reserves Adviser Class - September 22, 1994.
Nations Government Reserves Market Class - May 3, 1996.
+ Annualized.
++ Total return represents aggregate total return for periods indicated.
(a) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers, was less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS NATIONS INSTITUTIONAL RESERVES
For a Share Outstanding of each class of Nations Municipal Reserves throughout each period.
YEAR PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
4/30/98 4/30/97 4/30/96 4/30/95 4/30/94
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income
Capital Class. . . . . . . . . . . . . . . . . 0.0353 0.0337 0.0362 0.0313 0.0198
Liquidity Class. . . . . . . . . . . . . . . . 0.0341 0.0323 0.0347 0.0304 0.0188
Adviser Class* . . . . . . . . . . . . . . . . 0.0332 0.0313 0.0337 0.0199 --
Market Class* . . . . . . . . . . . . . . . . 0.0318 0.0301 -- -- --
Dividends from net investment income
Capital Class. . . . . . . . . . . . . . . . . (0.0353) (0.0337) (0.0362) (0.0313) (0.0198)
Liquidity Class. . . . . . . . . . . . . . . . (0.0341) (0.0323) (0.0347) (0.0304) (0.0188)
Adviser Class* . . . . . . . . . . . . . . . . (0.0332) (0.0313) (0.0337) (0.0199) --
Market Class*. . . . . . . . . . . . . . . . . (0.0318) (0.0301) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period
Capital Class. . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
Liquidity Class. . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 1.00
Adviser Class* . . . . . . . . . . . . . . . . 1.00 1.00 1.00 1.00 --
Market Class*. . . . . . . . . . . . . . . . . 1.00 1.00 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Return++
Capital Class. . . . . . . . . . . . . . . . . 3.61% 3.44% 3.70% 3.19% 2.00%
Liquidity Class. . . . . . . . . . . . . . . . 3.43% 3.29% 3.52% 3.09% 1.90%
Adviser Class* . . . . . . . . . . . . . . . . 3.34% 3.19% 3.43% 2.02% --
Market Class*. . . . . . . . . . . . . . . . . 3.24% 3.06% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of year (000s)
Capital Class. . . . . . . . . . . . . . . . . $74,251 $59,701 $48,482 $32,353 $35,698
Liquidity Class. . . . . . . . . . . . . . . . 53,074 54,677 6,734 2,591 13,805
Adviser Class* . . . . . . . . . . . . . . . . 29,936 7,296 55,511 64,123 --
Market Class*. . . . . . . . . . . . . . . . . 92,000 78,300 -- -- --
Ratio of operating expenses to average net assets
Capital Class. . . . . . . . . . . . . . . . . 0.20%** 0.20% 0.20% 0.23% 0.45%
Liquidity Class. . . . . . . . . . . . . . . . 0.35%** 0.35% 0.35% 0.33% 0.55%
Adviser Class* . . . . . . . . . . . . . . . . 0.45%** 0.45% 0.45% 0.48%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.55%** 0.55%+ -- -- --
Ratio of net investment income to average net assets
Capital Class. . . . . . . . . . . . . . . . . 3.53% 3.38% 3.61% 3.36% 1.98%
Liquidity Class. . . . . . . . . . . . . . . . 3.38% 3.23% 3.46% 3.26% 1.86%
Adviser Class* . . . . . . . . . . . . . . . . 3.28% 3.13% 3.36% 3.11%+ --
Market Class*. . . . . . . . . . . . . . . . . 3.18% 3.03%+ -- -- --
Ratio of operating expenses to average net assets
without waivers
Capital Class. . . . . . . . . . . . . . . . . 0.48% 0.52% 0.58% 0.59% 0.58%
Liquidity Class. . . . . . . . . . . . . . . . 1.33% 0.67% 0.73% 0.69% 0.67%
Adviser Class* . . . . . . . . . . . . . . . . 0.73% 0.77% 0.83% 0.84%+ --
Market Class*. . . . . . . . . . . . . . . . . 0.93% 0.87%+ -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The commencement dates of the Classes of Shares of the Portfolios are as
follows:
Nations Municipal Reserves Adviser Class - September 22, 1994.
Nations Municipal Reserves Market Class - May 3, 1996.
** The effect of interest expense on the operating expense ratio was 0.02%.
+ Annualized.
++ Total return represents aggregate total return for periods indicated.
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
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. At April 30, 1998, the Trust offered four portfolios:
Nations Cash Reserves, Nations Treasury Reserves, Nations Government Reserves
and Nations Municipal Reserves (individually, a "Portfolio", and collectively,
the "Portfolios"). The Portfolios currently offer four classes of shares:
Capital Class Shares, Liquidity Class Shares, Adviser Class Shares and Market
Class Shares. Each class of shares of a Portfolio has identical voting rights
(except shareholders of a class have exclusive voting rights on matters that
relate solely to that class), dividend, liquidation and other rights, except
each class bears different shareholder servicing and distribution plan fees.
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 -- Securities are valued on the basis of amortized
cost, which approximates 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 market value of the
instrument is not significant. Restricted securities and certain 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. Under the terms of a typical repurchase agreement, the
Portfolio takes possession of an underlying debt obligation subject to an
obligation of the seller to repurchase, and the Portfolio to resell, the
obligation at an agreed-upon price and time, thereby determining the yield
during the Portfolio's holding period. This arrangement results in a fixed
rate of return that is not subject to market fluctuations during the
Portfolio's holding period. The value of the collateral is at least equal
at all times to the total amount of the repurchase obligations, including
interest. Generally, in the event of counterparty default, the Portfolio
has the right to use the collateral to offset losses incurred. There would
be a potential loss to the Portfolio in the event the Portfolio is delayed
or prevented from exercising its right to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Portfolio seeks to assert
its right. The Portfolio's investment adviser and sub-adviser, acting under
the supervision of the Board of Trustees, monitor 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 may enter into reverse repurchase
agreements with institutions that the Portfolios' investment adviser and
sub-adviser have determined are credit worthy. Under the terms of a typical
reverse repurchase agreement, a 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 establishes a
segregated account with its custodian bank in which it will maintain cash,
U.S. Government securities or other appropriate liquid securities at least
equal in value to the 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 that the
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
Portfolio is obligated to repurchase. Securities subject to repurchase
under reverse repurchase agreements are designated in the Statement of Net
Assets.
At April 30, 1998, the Nations Treasury Reserves had reverse repurchase
agreements outstanding as follows:
<TABLE>
<CAPTION>
<S> <C>
Maturity Amount. . . . . . . . . . . . . . . . . . $ 156,741,000
Maturity Date. . . . . . . . . . . . . . . . . . . 07/01/98
Market Value of Assets Sold Under Agreements . . . $ 155,217,099
</TABLE>
The average daily balance of reverse repurchase agreements outstanding by
Nations Treasury Reserves during the year ended April 30, 1998 was
$120,153,488. Nations Cash Reserves and Nations Government Reserves did not
enter into any reverse repurchase agreements during the year ended April
30, 1998.
The proceeds received by Nations Treasury Reserves under the reverse
repurchase agreements were reinvested in a tri-party repurchase agreement.
Net fees earned during the year ended April 30, 1998, representing the
difference between interest rates on the reverse repurchase and repurchase
agreements, amounted to $182,733 and have been included in interest income
in the Statement of Operations.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions
are accounted for on a trade date basis. Realized gains and losses are
computed on the specific identification of the securities sold. Interest
income, adjusted for accretion of discounts and amortization of premiums
calculated ratably, is earned from the settlement date and is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date.
Each Portfolio's investment income and realized and unrealized gains and
losses are allocated among its classes based upon the relative net assets
of each class of shares.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- It 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 the
capital gains were earned or more frequently to maintain a net asset value
of $1.00 per share, unless offset by any available capital loss
carryforward. Income distributions and capital gain distributions on a
Portfolio level are determined in accordance with Federal income tax
regulations which may differ from generally accepted accounting principles.
FEDERAL INCOME TAX -- Each Portfolio intends to continue 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 portfolio or class of shares are charged to such
portfolio's or class's 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 net assets of each class of shares.
CASH FLOW INFORMATION -- Cash, as used in the Statement of Cash Flows, is
the amount reported in the Statement of Net Assets and represents cash on
hand at custodian banks. The Trust issues and redeems shares, invests in
securities, and distributes dividends from net investment income and net
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
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, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS.
The Trust has, on behalf of its Portfolios, entered into an investment advisory
agreement with NationsBanc Advisors, Inc. ("NBAI"), a wholly-owned subsidiary of
NationsBank, N.A. ("NationsBank"), pursuant to which NBAI provides investment
advisory services to the Portfolios and is entitled to receive a fee which is
calculated daily and paid monthly equal to 0.30%, on an annualized basis, of the
average daily net assets of each Portfolio.
The Trust has, on behalf of its Portfolios, entered into a sub-advisory
agreement with NBAI and TradeStreet Investment Associates, Inc. ("TradeStreet"),
a wholly-owned subsidiary of NationsBank, pursuant to which TradeStreet is
entitled to receive a sub-advisory fee from NBAI at the annual rate of 0.033% of
each Portfolio's average daily net assets.
Stephens Inc. ("Stephens") serves as the administrator of the Trust. First Data
Investor Services Group, Inc. ("First Data"), a wholly-owned subsidiary of First
Data Corporation, serves as the co-administrator of the Trust. Stephens and
First Data are entitled to receive a combined fee, computed daily and paid
monthly, at the annual rate of 0.10% of the average daily net assets of the
investment portfolios of the Trust. For the year ended April 30, 1998, Stephens
earned $542,594, net of waivers, from the Portfolios for its administration
services.
The investment adviser, sub-adviser and administrator may, from time to time,
reduce their fees payable by each Portfolio. For the year ended April 30, 1998,
the fees waived were as follows:
<TABLE>
<CAPTION>
FEES WAIVED BY FEES WAIVED BY
INVESTMENT ADVISER ADMINISTRATOR
<S> <C> <C>
Nations Cash Reserves. . . . . . . $5,510,631 $3,310,637
Nations Treasury Reserves. . . . . 1,539,732 839,649
Nations Government Reserves. . . . 757,134 416,493
Nations Municipal Reserves . . . . 429,881 216,243
</TABLE>
NationsBank of Texas, N.A. ("NationsBank of Texas"), served as the custodian for
the Trust's assets for the year ended April 30, 1998, and earned $26,231 for
providing such services. The Bank of New York ("BONY") has entered into an
agreement with each of the Portfolios and NationsBank of Texas, whereby BONY
serves as the sub-custodian for the Portfolios.
First Data also serves as the transfer agent for the Portfolios' shares.
NationsBank of Texas served as the sub-transfer agent for the Capital Class
Shares of the Portfolios for the year ended April 30, 1998, and earned
approximately $ 21,072 for providing such services. Stephens also served as
distributor of the Portfolios' shares.
The Trust pays each unaffiliated 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 each unaffiliated
Trustee in attending such meetings.
The Trust's eligible Trustees may participate in a non-qualified deferred
compensation plan and retirement plans which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Portfolios' assets. Income earned on
each plan par-
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
ticipant's deferral account is tied to the rate of return of the eligible
mutual funds selected by the ticipants 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 and retirement plans is included in
the "Trustees' fees and expenses" line of the Statements of Operations.
Certain other affiliated Nations Funds, advised by NBAI have made daily
investments of cash balances in Nations Cash Reserves, a portfolio of the Trust,
pursuant to an exemptive order received from the Securities and Exchange
Commission. At April 30, 1998, approximately .3% of the net assets of the
Nations Cash Reserves was held by other affiliated Nations Funds.
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. Unreimbursed expenses incurred by Stephens
in a given year may not be recovered by Stephens in subsequent years.
In addition, the Liquidity Class Shares Plan permits the Trust to pay Stephens
an annual fee of up to 0.30% of the average daily net assets of the Liquidity
Class Shares of Nations Cash Reserves, Nations Government Reserves, and Nations
Municipal Reserves and 0.35% of the average daily net assets of the Liquidity
Class Shares of Nations Treasury Reserves. Stephens may use this fee to
compensate certain financial institutions, with which it has entered into
servicing agreements, that provide administrative and/or distribution services
to Liquidity Class Shares shareholders.
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, respectively, of the Portfolios. Fees paid pursuant to the Servicing
Plans are charged as expenses of Liquidity Class Shares, Adviser Class Shares
and Market Class Shares, respectively, as accrued.
For the year ended April 30, 1998, 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 ADVISER MARKET
CLASS CLASS MARKET CLASS
SHARES SHARES 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>
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
A substantial portion of the fees paid pursuant to the plans described above are
paid to NationsBank and its affiliates.
4. SHARES OF BENEFICIAL INTEREST.
At April 30, 1998, an unlimited number of shares of beneficial interest without
par value were authorized for the Trust. The Trust's Declaration of Trust
authorizes the Board of Trustees to classify or reclassify any shares
authorized, but not issued, into one or more additional classes or series of
shares. Since the Portfolios have sold and redeemed shares only at a constant
net asset value of $1.00 per share, the number of shares represented by such
sales and redemptions is the same as the amounts shown below for such
transactions. Changes in capital stock for each Portfolio were as follows:
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1998 APRIL 30, 1997*
---------------- ---------------
<S> <C> <C>
NATIONS CASH RESERVES:
Capital Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 27,029,345,684 $ 8,400,298,782
Issued as reinvestment of dividends. . . . . . . . . 64,512,260 25,009,333
Redeemed . . . . . . . . . . . . . . . . . . . . . . (25,726,548,498) (7,348,719,105)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 1,367,309,446 $ 1,076,589,010
---------------- ---------------
Liquidity Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 8,183,907,272 $ 4,463,041,753
Issued as reinvestment of dividends. . . . . . . . . 18,290,722 5,877,940
Redeemed . . . . . . . . . . . . . . . . . . . . . . (7,514,186,096) (4,084,515,073)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 688,011,898 $384,404,620
---------------- ---------------
Adviser Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 3,993,186,298 $ 1,638,783,813
Issued as reinvestment of dividends. . . . . . . . . 20,313,854 3,465,664
Redeemed . . . . . . . . . . . . . . . . . . . . . . (3,588,637,815) (1,792,509,122)
---------------- ---------------
Net increase/(decrease). . . . . . . . . . . . . . . $ 424,862,337 $ (150,259,645)
---------------- ---------------
Market Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 1,504,300,000 $ 794,300,010
Redeemed . . . . . . . . . . . . . . . . . . . . . . (1,187,800,000) (461,300,000)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $316,500,000 $ 333,000,010
---------------- ---------------
Total Increase . . . . . . . . . . . . . . . . . . $ 2,796,683,681 $ 1,643,733,995
---------------- ---------------
---------------- ---------------
</TABLE>
- -------------------
* Nations Cash Reserves Market Class Shares commenced operations on May 3, 1996.
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1998 APRIL 30, 1997*
---------------- ---------------
<S> <C> <C>
NATIONS TREASURY RESERVES:
Capital Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 1,816,628,341 $ 1,673,872,701
Issued as reinvestment of dividends. . . . . . . . . 4,524,850 793,663
Redeemed . . . . . . . . . . . . . . . . . . . . . . (2,044,081,851) (1,510,038,699)
---------------- ---------------
Net increase/(decrease). . . . . . . . . . . . . . . $ (222,928,660) $ 164,627,665
---------------- ---------------
Liquidity Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 2,905,975,704 $ 553,984,269
Issued as reinvestment of dividends. . . . . . . . . 10,848,841 1,522,298
Redeemed . . . . . . . . . . . . . . . . . . . . . . (2,254,978,145) (485,733,563)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 661,846,400 $ 69,773,004
---------------- ---------------
Adviser Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 2,542,456,044 $ 735,220,753
Issued as reinvestment of dividends. . . . . . . . . 9,721,684 1,848,791
Redeemed . . . . . . . . . . . . . . . . . . . . . . (2,483,674,257) (758,512,266)
---------------- ---------------
Net (decrease) . . . . . . . . . . . . . . . . . . . $ 68,503,471 $ (21,442,722)
---------------- ---------------
Market Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 903,800,000 $ 333,950,010
Redeemed . . . . . . . . . . . . . . . . . . . . . . (761,700,000) (210,550,000)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 142,100,000 $ 123,400,010
---------------- ---------------
Total Increase . . . . . . . . . . . . . . . . . . $ 649,521,211 $ 336,357,957
---------------- ---------------
---------------- ---------------
- -------------------
* Nations Treasury Reserves Market Class Shares commenced operations on
May 3, 1996.
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1998 APRIL 30, 1997*
---------------- ---------------
<S> <C> <C>
NATIONS GOVERNMENT RESERVES:
Capital Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 1,207,037,500 $ 396,992,148
Issued as reinvestment of dividends. . . . . . . . . 6,640,442 488,093
Redeemed . . . . . . . . . . . . . . . . . . . . . . (1,148,448,015) (330,225,136)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 65,229,927 $ 67,255,105
---------------- ---------------
Liquidity Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 655,655,017 $ 28,431,378
Issued as reinvestment of dividends. . . . . . . . . 1,718,384 311,527
Redeemed . . . . . . . . . . . . . . . . . . . . . . (631,081,883) (22,390,624)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 26,291,518 $ 6,352,281
---------------- ---------------
Adviser Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 392,890,359 $ 646,626,695
Issued as reinvestment of dividends. . . . . . . . . 1,933,816 1,239,113
---------------- ---------------
---------------- ---------------
Redeemed . . . . . . . . . . . . . . . . . . . . . . (349,505,603) (731,189,720)
---------------- ---------------
Net increase/(decrease). . . . . . . . . . . . . . . $ 45,318,572 $ (83,323,912)
---------------- ---------------
</TABLE>
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1998 APRIL 30, 1997*
---------------- ---------------
<S> <C> <C>
NATIONS GOVERNMENT RESERVES (CONTINUED):
Market Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 799,149,999 $ 691,300,010
Redeemed . . . . . . . . . . . . . . . . . . . . . . (743,149,999) (472,800,000)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 56,000,000 $ 218,500,010
---------------- ---------------
Total Increase . . . . . . . . . . . . . . . . . . $ 192,840,017 $ 208,783,484
---------------- ---------------
---------------- ---------------
</TABLE>
- -------------------
* Nations Government Reserves Market Class Shares commenced operations on
May 3, 1996.
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1998 APRIL 30, 1997*
---------------- ---------------
<S> <C> <C>
NATIONS MUNICIPAL RESERVES:
Capital Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 344,665,444 $ 188,376,816
Issued as reinvestment of dividends. . . . . . . . . 195,129 --
Redeemed . . . . . . . . . . . . . . . . . . . . . . (330,310,094) (177,158,206)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 14,550,479 $ 11,218,610
---------------- ---------------
Liquidity Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 702,167,166 $ 456,759,834
Issued as reinvestment of dividends. . . . . . . . . 1,605,858 980,434
Redeemed . . . . . . . . . . . . . . . . . . . . . . (705,376,288) (409,796,778)
---------------- ---------------
Net increase/(decrease). . . . . . . . . . . . . . . $ (1,603,264) $ 47,943,490
---------------- ---------------
Adviser Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 275,458,637 $ 60,607,746
Issued as reinvestment of dividends. . . . . . . . . 874,781 196,137
Redeemed . . . . . . . . . . . . . . . . . . . . . . (253,694,084) (109,019,481)
---------------- ---------------
Net increase/(decrease). . . . . . . . . . . . . . . $ 22,639,334 $ (48,215,598)
---------------- ---------------
Market Class Shares:
Sold . . . . . . . . . . . . . . . . . . . . . . . . $ 326,000,000 $ 339,700,010
Redeemed . . . . . . . . . . . . . . . . . . . . . . (312,300,000) (261,400,000)
---------------- ---------------
Net increase . . . . . . . . . . . . . . . . . . . . $ 13,700,000 $ 78,300,010
---------------- ---------------
Total Increase . . . . . . . . . . . . . . . . . . $ 49,286,549 $ 89,246,512
---------------- ---------------
---------------- ---------------
</TABLE>
- -------------------
* Nations Municipal Reserves Market Class Shares Commenced operations on
May 3, 1996.
44
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
5. RESTRICTED SECURITIES
The following securities of Nations Cash Reserves are illiquid and restricted as
to the resale and, accordingly, are valued at fair market 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 summarizes illiquid restricted securities outstanding at
April 30, 1998.
<TABLE>
<CAPTION>
ACQUISITION PAR VALUE FAIR PERCENTAGE COST AT
SECURITY DATE VALUE PER UNIT VALUE OF NET ASSETS 4/30/98
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commonwealth Life
Insurance Co.
5.620% 05/01/98+ 02/05/98 $75,000,000 $ 1.00 $ 75,000,000 1.4% $ 75,000,000
Jackson National Life
Insurance Co.
5.780% 10/27/98# 01/02/98 50,000,000 1.00 50,000,000 0.9 50,000,000
Jackson National Life
Insurance Co.
5.790% 07/01/98+ 12/14/97 50,000,000 1.00 50,000,000 0.9 50,000,000
Peoples Security Life
Insurance Co.
5.760% 10/27/98# 05/09/97 25,000,000 1.00 25,000,000 0.5 25,000,000
Travelers Insurance
Funding Agreement
5.676% 07/14/98+ 07/31/97 50,000,000 1.00 50,000,000 0.9 50,000,000
Travelers Insurance
Funding Agreement
5.672% 05/01/98+ 10/14/97 50,000,000 1.00 50,000,000 0.9 50,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
$300,000,000 5.5% $300,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
# Put Date
+ Reset Date
Certain securities may be sold only pursuant to certain legal restrictions and
may be difficult to sell. No Portfolio will invest in more than 10% of the
value of its assets in securities that are illiquid.
The following security of Nations Cash Reserves is restricted as to resale,
however, this security is considered liquid due to the put feature which allows
the Portfolio to put the security back to the issuer within seven calendar days
notice.
<TABLE>
<CAPTION>
ACQUISITION PAR VALUE FAIR PERCENTAGE COST AT
SECURITY DATE VALUE PER UNIT VALUE OF NET ASSETS 4/30/98
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New York Life
Insurance Co.
5.671% 05/07/98# 11/17/97 $ 100,000,000 $ 1.00 $ 100,000,000 1.8% $ 100,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
# Put Date
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS NATIONS INSTITUTIONAL RESERVES
6. LINE OF CREDIT
The Trust participates in an uncommitted line of credit provided by BONY under a
line of credit agreement dated March 12, 1998 (the "Agreement"). Advances under
the Agreement are taken primarily for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. Interest on borrowings is payable at the federal
funds rate plus 0.50% on an annualized basis. The Agreement requires, among
other things, that each participating Portfolio maintain a ratio of no less than
4 to 1 net assets (not including funds borrowed pursuant to the Agreement) to
aggregate amount of indebtedness pursuant to the Agreement.
At April 30, 1998 there were no loans outstanding under the Agreement.
Borrowings for the year ended April 30, 1998, by the Portfolios under the
Agreement are disclosed below:
<TABLE>
<CAPTION>
AVERAGE AVERAGE
AMOUNT AVERAGE DEBT
FUND OUTSTANDING SHARES PER SHARE
- -------------------------- ----------- ------------- ---------
<S> <C> <C> <C>
Nations Cash Reserves $ 177,863 3,683,843,460 $ 0.00(a)
Nations Municipal Reserves 488,384 241,766,205 0.00(a)
</TABLE>
- -------------------
(a) Amount represents less than $0.01 per share.
7. CAPITAL LOSS CARRYFORWARD.
At April 30, 1998, the Portfolios had available for Federal income tax purposes
the following unused capital losses expiring April 30 of the following years:
<TABLE>
<CAPTION>
2002 2003 2004 2005
------ ------ ----- -------
<S> <C> <C> <C> <C>
Nations Treasury Reserves $9,255 $3,324 -- $15,261
Nations Government Reserves -- -- $ 434 --
Nations Municipal Reserves -- 1,080 -- --
</TABLE>
8. SUBSEQUENT EVENTS.
NationsBank of Texas merged into NationsBank on May 6, 1998. NationsBank began
serving as custodian of the Trust's assets and sub-transfer agent for the
Capital Class Shares of the Portfolios on that date and is providing the same
services as were previously provided by NationsBank of Texas.
The Trust is party to an Agreement and Plan of Reorganization with The Emerald
Funds (which are advised by Barnett Capital Advisors, Inc., an indirect
wholly-owned subsidiary of NationsBank Corporation) pursuant to which the assets
and liabilities (net) of the Emerald Treasury Advantage Fund of $144,374,637
was acquired in a tax-free reorganization in exchange of shares by Nations
Treasury Reserves on May 15, 1998.
9. PRINCIPAL SHAREHOLDERS
At April 30, 1998, the 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 Treasury Reserves 1 32%
Nations Government Reserves 1 16
</TABLE>
46
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS NATIONS INSTITUTIONAL RESERVES
To the Shareholders and Trustees of Nations Institutional Reserves:
In our opinion, the accompanying statements of net assets and the related
statements of operations, of cash flows for Nations Treasury Reserves, and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Nations Cash Reserves, Nations
Treasury Reserves, Nations Government Reserves and Nations Municipal Reserves
(each a series of Nations Institutional Reserves, hereafter referred to as the
"Trust") at April 30, 1998, and the results of each of their operations, the
cash flows for Nations Treasury Reserves, the changes in each of their net
assets and the financial highlights for the periods indicated, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion of these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at April 30, 1998 by
correspondence with the custodian and the application of alternative auditing
procedures where securities purchased had not been received by the custodian,
provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
June 23, 1998
47
<PAGE>
TAX INFORMATION (UNAUDITED) NATIONS INSTITUTIONAL RESERVES
For the year ended April 30, 1998, all of the distributions made from investment
income of Nations Municipal Reserves are tax-exempt for regular Federal income
tax purposes. A portion of this income may be subject to the alternative
minimum tax.
48
<PAGE>
[LOGO] --------------
BULK RATE
P.O. Box 34602 U.S. POSTAGE
Charlotte, NC 28234,4602 PAID
Toll Free 1-800-353-8028 N. READING, MA
PERMIT NO.
105
--------------
