<PAGE> 1
[NATIONS FUNDS LOGO]
[PICTURE DEPICTING 2 PEOPLE WALKING]
ANNUAL REPORT
-------------
Nations
Institutional
Reserves
NATIONS CASH RESERVES
NATIONS MONEY MARKET RESERVES
NATIONS TREASURY RESERVES
NATIONS GOVERNMENT RESERVES
NATIONS MUNICIPAL RESERVES
FOR THE YEAR ENDED MARCH 31, 1999
<PAGE> 2
- ---------------------------------
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> 3
[NATIONS FUND LOGO]
Dear Shareholder:
We are pleased to present the annual financial report for Nations Institutional
Reserves (the "Funds"). This report contains important financial information
regarding your investment for the period ended March 31, 1999. We hope you will
take a moment to review this information.
ECONOMIC REVIEW
During the fourth quarter of 1998, the Federal Open Market Committee (FOMC)
implemented two Federal Funds Rate cuts, which were critical in stabilizing the
capital markets. However, the FOMC's actions were not isolated. Central banks
around the world cut interest rates and injected liquidity into the system -- as
many as 60 interest rate cuts were observed throughout the last two quarters of
1998, globally. Real Gross Domestic Product growth was 4.0% for the full year of
1998 and the economy grew at a robust 6.0%. A strong U.S. dollar, coupled with
declining raw commodity prices, reinforce the view of a benign inflation
environment despite low unemployment numbers.
LOOKING AHEAD
Members of the FOMC continue to ponder two questions. First, can the U.S.
economy grow at an above-trend pace without a rekindling of inflation? Second,
can the U. S. remain as what Federal Reserve Board (Fed) Chairman Alan Greenspan
once called "an oasis of prosperity?" The answer to both questions is likely
yes, so far. It is expected that the Fed will keep its interest rate policy
steady throughout the first six months of 1999, but some debate ensues about the
Committee's position for the latter half of the year. Bond yields have moved
higher recently on fears that strong growth might force the Fed to raise
interest rates. Stock market gains, signs of strength in consumption, and the
condition of the world economy may provoke "a bias to tighten" interest rates.
SERVING YOUR SHORT-TERM INVESTMENT NEEDS
As a series of money market funds designed specifically for the needs of
institutional investors, the Funds are managed daily to provide your
organization with access to the major sectors of the money market, conveniently
and cost effectively.
We thank you for choosing Nations Institutional Reserves to help you pursue your
short-term cash management needs.
Sincerely,
<TABLE>
<S> <C>
/s/ A. Max Walker /s/ Robert H. Gordon
A. Max Walker, Robert H. Gordon
President and Chairman President,
of the Board NationsBanc Advisors, Inc.
</TABLE>
AN INVESTMENT IN MONEY MARKET FUNDS IN NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH MONEY
MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE,
IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN MONEY MARKET FUNDS.
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.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
NATIONS INSTITUTIONAL RESERVES
Nations Cash Reserves
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 17.6%
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 3.7%
Bankers Trust Company
$ 40,000 4.860%+ 04/01/99++..................... $ 39,998
23,500 5.770% 04/28/99........................ 23,498
45,000 5.780% 04/28/99........................ 44,998
20,000 Chase Manhattan Bank
5.685% 08/03/99....................... 19,996
First Union National Bank
110,000 5.010%+ 04/01/99++..................... 110,000
60,000 5.300% 03/01/00........................ 60,000
----------
298,490
----------
CERTIFICATES OF DEPOSIT -- YANKEE -- 6.2%
35,000 Bank of Nova Scotia, (New York)
5.330% 03/03/00....................... 34,988
50,000 Bayerische Hypotheken-und-Vereinsbank,
(New York)
5.075% 02/10/00....................... 49,983
40,000 Credit Agricole, (New York)
5.750% 04/01/99....................... 40,000
Deutsche Bank, (New York)
50,000 5.120% 01/10/00........................ 50,000
50,000 5.160% 01/12/00........................ 50,000
50,000 5.100% 02/18/00........................ 49,985
Societe Generale, (New York)
125,000 4.853%+ 04/01/99++..................... 124,954
30,000 5.750% 04/16/99........................ 29,986
30,000 5.800% 04/28/99........................ 29,986
50,000 Union Bank of Switzerland, (New York)
5.080% 01/13/00....................... 49,989
----------
509,871
----------
TIME DEPOSITS -- EURO -- 7.7%
50,000 Commerzbank
5.270% 03/01/00....................... 49,995
200,000 Credit Agricole
5.125% 04/01/99....................... 200,000
100,000 First National Bank of Chicago
5.125% 04/01/99....................... 100,000
90,000 Societe Generale
5.125% 04/01/99....................... 90,000
190,000 Westdeutsche Landesbanken Girozentrale
5.188% 04/01/99....................... 190,000
----------
629,995
----------
TOTAL BANK OBLIGATIONS
(Cost $1,438,356)..................... 1,438,356
----------
CORPORATE OBLIGATIONS -- 67.7%
COMMERCIAL PAPER -- 47.4%
Aon Corporation
13,000 Discount note 04/07/99................. 12,989
50,000 Discount note 05/12/99................. 49,721
Bankers Trust Corporation
35,000 Discount note 04/12/99................. 34,944
25,000 Discount note 04/15/99................. 24,949
50,000 Discount note 07/20/99................. 49,251
36,648 Barton Capital Corporation
Discount note 04/27/99##.............. 36,518
15,500 Beta Finance, Inc.
Discount note 06/22/99##.............. 15,329
50,000 BT Alex Brown Inc.
Discount note 05/04/99................ 49,775
50,000 Ciesco LP
Discount note 05/19/99................ 49,678
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
Countrywide Home Loans, Inc.
$ 25,000 Discount note 05/19/99................. $ 24,836
115,000 Discount note 05/24/99................. 114,169
Edison Securitization LLC
45,000 Discount note 04/23/99#................ 44,863
95,084 Discount note 05/11/99#................ 94,568
60,000 Discount note 05/12/99#................ 59,645
87,100 Discount note 06/30/99#................ 86,037
57,786 Discount note 08/27/99#................ 56,615
Finova Capital Corporation
25,000 Discount note 05/04/99................. 24,889
25,000 Discount note 05/24/99................. 24,820
50,000 Discount note 06/09/99................. 49,529
20,000 Discount note 06/10/99................. 19,809
20,000 Discount note 06/15/99................. 19,796
50,000 Discount note 06/16/99................. 49,483
50,000 Discount note 06/28/99................. 49,399
60,000 General Electric Capital Corporation
Discount note 10/04/99................ 58,528
120,000 Goldman Sachs Group, LP
Discount note 04/14/99................ 119,777
Hitachi America, Ltd.
9,000 Discount note 04/13/99................. 8,984
12,000 Discount note 05/11/99................. 11,927
16,000 Discount note 05/14/99................. 15,896
International Securitization
Corporation
50,000 Discount note 04/15/99#................ 49,905
35,250 Discount note 04/22/99#................ 35,147
55,050 Discount note 04/29/99#................ 54,840
75,000 Discount note 04/30/99#................ 74,705
14,585 Discount note 06/09/99#................ 14,445
50,000 Discount note 06/17/99#................ 49,480
Lehman Brothers Holdings Inc.
60,000 Discount note 04/26/99................. 59,792
50,000 Discount note 04/27/99................. 49,816
110,000 Discount note 05/03/99................. 109,506
60,000 Discount note 05/05/99................. 59,713
50,000 Discount note 05/18/99................. 49,668
50,000 Discount note 09/22/99................. 48,775
75,000 Lexington Parker Capital Company LLC
4.905%+ 04/01/99++##.................. 75,000
Mitsubishi International Corporation
21,572 Discount note 04/23/99................. 21,505
20,000 Discount note 05/26/99................. 19,845
5,000 Discount note 06/30/99................. 4,937
MOAT Funding LLC
53,688 Discount note 04/07/99#................ 53,644
28,545 Discount note 04/12/99#................ 28,502
32,287 Discount note 05/17/99#................ 32,085
26,643 Discount note 05/28/99#................ 26,438
35,000 Discount note 06/07/99#................ 34,680
25,000 Discount note 06/14/99#................ 24,742
20,000 Discount note 06/21/99#................ 19,779
29,270 Discount note 06/28/99#................ 28,920
13,511 Discount note 06/29/99#................ 13,350
29,851 Discount note 08/24/99#................ 29,262
15,000 Discount note 09/21/99#................ 14,648
50,000 Discount note 10/20/99#................ 48,611
National Bank of Canada, (New York)
20,000 Discount note 08/23/99................. 19,608
25,000 Discount note 09/01/99................. 24,475
25,000 Discount note 09/08/99................. 24,460
40,000 New Center Asset Trust
Discount note 04/15/99................ 39,925
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 5
NATIONS INSTITUTIONAL RESERVES
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------
<C> <S> <C>
CORPORATE OBLIGATIONS -- (CONTINUED)
COMMERCIAL PAPER -- (CONTINUED)
PHH Corporation
$ 25,000 Discount note 05/13/99................. $ 24,854
25,000 Discount note 08/10/99................. 24,541
25,000 Discount note 08/11/99................. 24,538
50,000 Discount note 08/30/99................. 48,924
SAFECO Corporation
20,000 Discount note 05/17/99#................ 19,873
45,000 Discount note 06/10/99#................ 44,567
24,000 Discount note 06/23/99#................ 23,725
SAFECO Credit Company
12,300 Discount note 04/30/99................. 12,250
25,000 Discount note 05/12/99................. 24,859
31,000 Discount note 06/10/99................. 30,701
30,000 Discount note 06/28/99................. 29,642
Sigma Finance, Inc.
15,000 Discount note 06/09/99##............... 14,860
60,000 Discount note 06/23/99##............... 59,329
35,000 Discount note 06/30/99##............... 34,574
360,000 Spice Trust I
Discount note 04/28/99................ 358,654
Tulip Funding Corporation
100,000 Discount note 04/23/99##............... 99,704
67,064 Discount note 04/26/99##............... 66,838
64,084 Discount note 05/19/99##............... 63,666
36,638 Discount note 06/04/99##............... 36,319
74,609 Variable Funding Capital Corporation
Discount note 04/01/99##.............. 74,609
Victory Receivables Corporation
50,000 Discount note 04/19/99##............... 49,879
17,095 Discount note 05/12/99##............... 17,000
30,000 Discount note 05/17/99##............... 29,814
32,235 Discount note 05/18/99##............... 32,030
28,035 Discount note 06/14/99##............... 27,754
15,082 Discount note 06/15/99##............... 14,929
WCP Funding Inc.
25,000 Discount note 04/28/99#................ 24,909
50,000 Discount note 06/04/99#................ 49,568
----------
3,859,842
----------
CORPORATE BONDS AND NOTES -- 20.3%
Bankers Trust Corporation (MTN)
40,000 4.920%+ 04/01/99++##................... 39,999
45,000 4.919%+ 04/14/99++..................... 45,000
Bear, Stearns and Company, Inc.
69,000 5.396%+ 04/04/99++..................... 69,000
50,000 4.907%+ 04/28/99++..................... 50,000
75,000 5.374%+ 05/04/99++..................... 75,000
48,000 5.800% 06/14/99........................ 48,023
40,000 5.150% 01/25/00........................ 40,000
50,000 5.170% 02/10/00........................ 50,000
30,000 5.180% 02/18/00........................ 30,000
60,000 5.340% 03/02/00........................ 60,000
8,250 Chrysler Financial Company LLC
12.750% 11/01/99...................... 8,618
70,000 Credit Suisse First Boston Corporation
4.965%+ 04/09/99++##.................. 69,958
Goldman Sachs Group LP
100,000 5.260%+ 04/07/99++##................... 100,000
100,000 4.995%+ 04/09/99++##!.................. 100,000
50,000 5.280% 02/24/00........................ 49,999
13,500 Lehman Brothers Holdings Inc.
10.000% 05/15/99...................... 13,563
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Liberty Lighthouse Funding Company LLC
$ 50,000 4.920%+ 04/01/99++##................... $ 50,000
50,000 4.920%+ 04/01/99++##................... 50,000
25,000 4.960%+ 04/01/99++##................... 25,000
50,000 4.919%+ 04/15/99++##................... 49,996
25,000 4.919%+ 04/15/99++##................... 25,000
50,000 4.919%+ 04/15/99++##................... 49,996
25,000 5.760% 07/23/99##...................... 24,999
Merrill Lynch & Company
70,000 4.900%+ 04/01/99++..................... 70,000
67,000 4.970%+ 04/01/99++..................... 67,000
50,000 4.961%+ 04/06/99++..................... 50,000
PHH Corporation
40,000 4.995%+ 04/01/99++..................... 39,999
50,000 5.009%+ 04/14/99++..................... 50,000
Sigma Finance, Inc.
45,000 5.190% 02/18/00##...................... 45,000
50,000 5.220% 02/23/00##...................... 50,000
60,000 5.330% 03/01/00##...................... 60,000
100,000 SMM Trust Series 1999-B
5.449% 03/15/00@@..................... 100,000
----------
1,656,150
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $5,515,992)...................... 5,515,992
----------
GUARANTEED INVESTMENT CONTRACTS -- 6.1%
75,000 Commonwealth Life Insurance
Company Inc.
5.060%+ 04/01/99++@@................... 75,000
First Allmerica Financial Life
Insurance Company
50,000 5.060%+ 06/29/99!@@.................... 50,000
50,000 5.090%+ 06/29/99!@@.................... 50,000
50,000 5.120%+ 06/29/99!@@.................... 50,000
Jackson National Life Insurance Company
50,000 5.180%+ 04/01/99++@@................... 50,000
50,000 5.090%+ 09/27/99!@@.................... 50,000
100,000 New York Life Insurance Company
5.106%+ 04/07/99!@@................... 100,000
25,000 Peoples Security Life Insurance Company
5.010%+ 09/27/99!@@................... 25,000
50,000 Travelers Life Insurance Company
5.040%+ 06/01/99++@@.................. 50,000
----------
TOTAL GUARANTEED INVESTMENT CONTRACTS
(Cost $500,000)....................... 500,000
----------
MUNICIPAL BONDS AND NOTES -- 0.5%
40,000 Virginia State, Housing Development
Authority, Commonwealth Revenue,
Series 1996E,
4.950%+ 04/07/99++.................... 40,000
----------
TOTAL MUNICIPAL BONDS
AND NOTES
(Cost $40,000)........................ 40,000
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 6
NATIONS INSTITUTIONAL RESERVES
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- 6.7%
$ 30,000 Agreement with Credit Suisse First
Boston Corporation, 5.120% dated
03/31/99 to be repurchased at $30,004
on 04/01/99 collateralized by: $31,054
FMC Discount Notes, due 06/08/99 -
08/20/99.............................. $ 30,000
100,000 Agreement with Deutsche Bank Securities
Inc., 5.230% dated 03/31/99 to be
repurchased at $100,015 on 04/01/99
collateralized by: $102,000 Various
Commercial Paper, due 04/22/99 -
05/21/99.............................. 100,000
140,000 Agreement with Lehman Brothers, Inc.,
5.150% dated 03/31/99 to be
repurchased at $140,020 on 04/01/99
collateralized by: $109,827 GNMA,
6.000% - 8.500% due 11/15/17 -
03/15/29; $32,962 GNMA II, 6.125% -
10.500% due 03/20/18 - 02/20/28....... 140,000
100,000 Agreement with Merrill Lynch Government
Securities Inc., 5.200% dated 03/31/99
to be repurchased at $100,014 on
04/01/99 collateralized by: $104,232
Various Commercial Paper, due
04/29/99 - 06/28/99................... 100,000
175,000 Agreement with Salomon Smith Barney,
Inc., 5.050% dated 03/31/99 to be
repurchased at $175,025 on 04/01/99
collateralized by: $178,500 GNMA,
5.500% - 9.500% due 03/15/01 -
02/15/29.............................. 175,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $545,000)....................... 545,000
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.9%
107,497 AIM Liquid Asset Portfolio............... 107,497
18,474 AIM Prime Fund........................... 18,474
31,484 Dreyfus Cash Management Plus Fund........ 31,484
----------
TOTAL INVESTMENT COMPANIES
(Cost $157,455)......................... 157,455
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $8,196,803*)............... 100.5% $8,196,803
----------
OTHER ASSETS AND
LIABILITIES (NET)................ (0.5)%
Cash..................................... $ 105
Receivable for Fund shares sold.......... 386,970
Interest receivable...................... 33,494
Prepaid expenses......................... 149
Dividends payable........................ (33,143)
Payable for Fund shares redeemed......... (421,177)
Investment advisory fee payable.......... (1,786)
Administration fee payable............... (193)
Shareholder servicing and distribution
fees payable............................ (946)
Accrued Trustees' fees and expenses...... (111)
Accrued expenses and other liabilities... (682)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)....................... (37,320)
----------
NET ASSETS........................ 100.0% $8,159,483
==========
NET ASSETS CONSIST OF:
Undistributed net investment income...... $ 27
Accumulated net realized loss on
investments sold........................ (17)
Paid-in capital.......................... 8,159,473
----------
NET ASSETS............................... $8,159,483
==========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
CAPITAL CLASS SHARES
($4,379,429,710/4,379,424,409 shares
outstanding)............................
$1.00
==========
LIQUIDITY CLASS SHARES
($1,423,382,189/1,423,380,351 shares
outstanding)............................
$1.00
==========
ADVISER CLASS SHARES
($870,169,557/870,168,559 shares
outstanding)............................
$1.00
==========
MARKET CLASS SHARES
($1,486,501,565/1,486,500,010 shares
outstanding)............................
$1.00
==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at March 31, 1999.
++ Reset date. Interest rates reset either daily, weekly or monthly.
@@ Restricted Security (Note 5).
! Security subject to a demand feature which allows the fund to put the
security back to the issuer within 7 to 180 calendar days.
# Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 7
NATIONS INSTITUTIONAL RESERVES
Nations Money Market Reserves
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 14.2%
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 3.7%
$ 5,000 Chase Manhattan Bank
5.685% 08/03/99....................... $ 4,999
50,000 First Union National Bank
5.010%+ 04/01/99++.................... 50,000
----------
54,999
----------
CERTIFICATES OF DEPOSIT -- YANKEE -- 6.4%
10,000 Bayerische Hypotheken-und-Vereinsbank,
(New York)
5.075% 02/10/00....................... 9,997
5,000 Commerzbank, (New York)
5.270% 03/01/00....................... 5,000
Deutsche Bank, (New York)
10,000 5.120% 01/10/00........................ 10,000
10,000 5.160% 01/12/00........................ 10,000
10,000 5.100% 02/18/00........................ 9,997
Societe Generale, (New York)
5,000 4.853%+ 04/01/99++..................... 4,999
20,000 4.840%+ 04/20/99++..................... 19,995
25,000 Union Bank of Switzerland, (New York)
5.080% 01/13/00....................... 24,993
----------
94,981
----------
TIME DEPOSITS -- EURO -- 4.1%
60,000 Westdeutsche Landesbanken Girozentrale
5.188% 04/01/99....................... 60,000
----------
TOTAL BANK OBLIGATIONS (Cost
$209,980)............................. 209,980
----------
CORPORATE OBLIGATIONS -- 57.3%
COMMERCIAL PAPER -- 41.8%
25,000 Bankers Trust Corporation
Discount note 07/20/99................. 24,626
30,197 Barton Capital Corporation
Discount note 04/21/99##............... 30,115
Beta Finance, Inc.
33,500 Discount note 04/30/99##............... 33,369
30,000 Discount note 06/22/99##............... 29,669
80,000 Corporate Receivables Corporation
Discount note 04/21/99##............... 79,783
Edison Securitization LLC
50,000 Discount note 05/05/99#................ 49,758
10,000 Discount note 06/30/99#................ 9,876
5,000 General Electric Capital Corporation
Discount note 10/04/99................. 4,877
5,000 Hitachi America, Ltd.
Discount note 05/14/99................. 4,968
International Securitization Corporation
27,135 Discount note 04/20/99#................ 27,065
10,255 Discount note 04/29/99#................ 10,216
25,000 Discount note 06/10/99#................ 24,762
60,000 Morgan Stanley Dean Witter & Company
Discount note 07/28/99................. 59,050
National Bank of Canada, (New York)
5,000 Discount note 09/01/99................. 4,895
5,000 Discount note 09/08/99................. 4,892
10,000 New Center Asset Trust
Discount note 04/15/99................. 9,981
40,000 Sigma Finance, Inc.
Discount note 06/23/99##............... 39,553
65,000 Spice Trust 1
Discount note 04/28/99................. 64,757
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
Tulip Funding Corporation
$ 50,000 Discount note 04/23/99##............... $ 49,852
20,000 Discount note 05/12/99##............... 19,889
36,039 Victory Receivables Corporation
Discount note 04/19/99##............... 35,952
----------
617,905
----------
CORPORATE BONDS AND NOTES -- 15.5%
5,000 Bankers Trust Corporation (MTN)
4.919%+ 04/14/99++##.................. 5,000
Bear, Stearns and Company, Inc.
5,000 5.102%+ 04/06/99++..................... 4,974
5,000 5.374%+ 05/04/99++..................... 5,000
40,000 5.800% 06/14/99........................ 40,019
10,000 5.170% 02/10/00........................ 10,000
5,000 5.180% 02/18/00........................ 5,000
50,000 Credit Suisse First Boston Corporation
4.965%+ 04/09/99++##................... 49,970
Goldman Sachs Group LP
25,000 4.995%+ 04/07/99++##!.................. 25,000
25,000 5.260%+ 04/07/99++##................... 25,000
25,000 5.280% 02/24/00........................ 25,000
8,000 Merrill Lynch & Company Inc.
4.970%+ 04/01/99++..................... 8,000
Sigma Finance, Inc.
15,000 5.190% 02/18/00##...................... 15,000
10,000 5.220% 02/23/00##...................... 10,000
----------
227,963
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $845,868)....................... 845,868
----------
REPURCHASE AGREEMENTS -- 22.0%
260,000 Agreement with ABN-AMRO Inc.,
5.050% dated 03/31/99 to be repurchased
at $260,036 on 04/01/99 collateralized
by: $19,970 U.S. Treasury Notes,
6.375% - 8.000% due
03/31/01 - 05/15/01; $1,715 U.S.
Treasury Bonds, 9.250% due 02/15/16;
$2,260 TVA Strips, Principal Only, due
07/15/43; $3,992 TVA Strips, Interest
Only, due 05/01/02 - 05/01/13; $41,298
FNMA, 0.000% - 6.920% due
04/05/99 - 06/01/17; $15,740 FMAC,
0.000% - 7.830% due 05/12/99 -
12/02/19; $17,699 FHLB, 0.000% -
7.105% due 04/14/99 - 03/08/19; $4,426
FFCB, 5.960% - 6.450% due
06/16/08 - 10/07/09; $158,100 GNMA,
6.000% - 7.500% due
12/15/23 - 09/15/28................... 260,000
65,000 Agreement with Salomon Smith Barney,
Inc., 5.050% dated 03/31/99 to be
repurchased at $65,009 on 04/01/99
collateralized by: $66,300 GNMA,
5.500% - 8.000% due 11/15/22 -
03/15/29.............................. 65,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $325,000)....................... 325,000
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 8
NATIONS INSTITUTIONAL RESERVES
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 7.1%
64,673 AIM Liquid Asset Portfolio............... $ 64,673
40,506 Dreyfus Cash Management.................. 40,506
----------
TOTAL INVESTMENT COMPANIES
(Cost $105,179)......................... 105,179
----------
TOTAL INVESTMENTS
(Cost $1,486,027*)............... 100.6% 1,486,027
----------
OTHER ASSETS AND LIABILITIES
(NET)............................ (0.6)%
Cash..................................... $ 23
Receivable for Fund shares sold.......... 14,848
Interest receivable...................... 3,453
Prepaid expenses......................... 110
Dividends payable........................ (5,716)
Payable for Fund shares redeemed......... (21,145)
Investment advisory fee payable.......... (123)
Administration fee payable............... (41)
Shareholder servicing and distribution
fees payable............................ (349)
Accrued Trustees' fees and expenses...... (12)
Accrued expenses and other liabilities... (145)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................... (9,097)
----------
NET ASSETS........................ 100.0% $1,476,930
==========
NET ASSETS CONSIST OF:
Undistributed net investment income...... $ 4
Accumulated net realized loss on
investments sold........................ (13)
Paid-in capital.......................... 1,476,939
----------
NET ASSETS............................... $1,476,930
==========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
- -------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
CAPITAL CLASS SHARES:
($595,482,247/595,483,802 shares
outstanding)............................
$1.00
==========
LIQUIDITY CLASS SHARES:
($1,078,313/1,078,318 shares
outstanding)............................
$1.00
==========
ADVISER CLASS SHARES:
($6,376,283/6,376,331 shares
outstanding)............................
$1.00
==========
MARKET CLASS SHARES:
($873,992,903/874,000,010 shares
outstanding)............................
$1.00
==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at March 31, 1999.
++ Reset date. Interest rates reset either daily, weekly or monthly.
! Security subject to a demand feature which allows the fund to put the
security back to the issuer within 7 to 180 calendar days.
# Securities are not registered under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 9
NATIONS INSTITUTIONAL RESERVES
Nations Treasury Reserves
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 16.7%
U.S. TREASURY NOTES -- 16.7%
$ 75,000 6.375% 04/30/99@....................... $ 75,071
100,000 6.250% 05/31/99@....................... 100,264
30,000 6.000% 06/30/99@....................... 30,033
65,000 5.875% 07/31/99@....................... 65,170
50,000 5.875% 08/31/99@....................... 50,076
90,000 5.625% 11/30/99@....................... 90,577
73,000 5.875% 02/15/00@....................... 73,653
50,000 5.500% 02/29/00@....................... 50,289
----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $535,133)....................... 535,133
----------
REPURCHASE AGREEMENTS -- 76.2%
638,000 Agreement with ABN-AMRO Bank, 4.970%
dated 03/31/99 to be repurchased at
$638,088 on 04/01/99 collateralized
by: $150,537 U.S. Treasury Strips,
Interest Only, due
05/15/00 - 05/15/19; $471,050 U.S.
Treasury Notes, 3.375% - 3.625% due
07/15/02 - 01/15/07; $29,174 U.S.
Treasury Strips, Principal Only, due
08/15/99 - 11/15/26................... 638,000
127,000 Agreement with Barclays Capital, 4.900%
dated 03/31/99 to be repurchased at
$127,017 on 04/01/99 collateralized
by: $68,104 U.S. Treasury Notes,
6.000% due 08/15/99; $4,479 U.S.
Treasury Bonds, 8.875% due 08/15/17;
$56,756 U.S. Treasury Strips,
Principal Only, due 11/15/24.......... 127,000
127,000 Agreement with Bear Stearns and
Company, Inc., 4.900% dated 03/31/99
to be repurchased at $127,017 on
04/01/99 collateralized by: $1,975
U.S. Treasury Bills, due 07/15/99;
$106,017 U.S. Treasury Strips,
Interest Only, due
11/15/13 - 05/15/18; $22,190 U.S.
Treasury Strips, Principal Only, due
11/15/22 - 02/15/23................... 127,000
125,000 Agreement with CIBC Wood Gundy
Securities Corporation, 5.000% dated
03/31/99 to be repurchased at $125,017
on 04/01/99 collateralized by: $32,339
U.S. Treasury Bills, due 08/26/99;
$30,334 U.S. Treasury Bonds, 10.620%
due 08/15/15; $64,944 U.S. Treasury
Notes, 5.500% - 5.870% due 11/15/99 -
05/31/03.............................. 125,000
443,677 Agreement with Credit Suisse First
Boston Corporation. Interest is
payable monthly. The agreement is
terminable by the Fund daily. The
final maturity date of the agreement
is 04/01/99 collateralized by:
$455,447 U.S. Treasury Strips,
Interest Only, due
05/15/01 - 05/15/16; $2,186 U.S.
Treasury Strips, Principal Only, due
08/15/03!!............................ 443,677
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$127,000 Agreement with Deutsche Bank, 5.000%
dated 03/31/99 to be repurchased at
$127,017 on 04/01/99 collateralized
by: $129,540 GNMA, 8.500% - 9.000% due
09/15/16 - 10/15/26................... $ 127,000
16,000 Agreement with Dresdner Klein, 5.000%
dated 03/31/99 to be repurchased at
$16,002 on 04/01/99 collateralized by:
$16,324 U.S. Treasury Notes, 5.500%
due 04/15/00.......................... 16,000
127,000 Agreement with First Union Capital
Corporation, 4.970% dated 03/31/99 to
be repurchased at $127,018 on 04/01/99
collateralized by: $23,152 U.S.
Treasury Bills, due 04/15/99 -
07/22/99; $6,248 U.S. Treasury Bonds,
8.750% due 08/15/20; $83,869 U.S.
Treasury Notes, 4.875% - 8.500% due
05/31/99 - 02/15/06; $16,359 U.S.
Treasury Strips, Interest Only, due
08/15/99 - 02/15/01................... 127,000
127,000 Agreement with J.P. Morgan Securities
Inc., 5.050% dated 03/31/99 to be
repurchased at $127,018 on 04/01/99
collateralized by: $129,540 GNMA,
6.500% - 7.500% due 01/15/26 -
04/15/29.............................. 127,000
112,000 Agreement with Lehman Brothers, Inc.,
4.880%, with a final maturity date of
04/06/99. Interest receivable as of
March 31, 1999 was $30, collateralized
by: $104,712 GNMA, 6.000% - 9.000% due
10/15/09 - 03/15/29; $9,517 GNMA II,
6.875% - 10.000% due
01/20/16 - 02/20/28................... 112,000
90,000 Agreement with Morgan Stanley Group
Inc., 4.810%, with a final maturity
date of 04/30/99. Interest receivable
as of March 31, 1999 was $1,792,
collateralized by: $92,342 GNMA,
7.000% - 8.500% due 09/15/25 -
11/15/36@@........................... 90,000
127,000 Agreement with Salomon Smith Barney,
Inc., 5.050% dated 03/31/99 to be
repurchased at $127,018 on 04/01/99
collateralized by: $129,541 GNMA,
5.500% - 11.000% due 10/15/99 -
10/20/28.............................. 127,000
127,000 Agreement with Societe Generale, 5.050%
dated 03/31/99 to be repurchased at
$127,018 on 04/01/99 collateralized
by: $130,592 GNMA, 5.500% - 6.125% due
12/20/27 - 02/20/28................... 127,000
127,000 Agreement with Westdeutsche
Landesbanken, Girozentrale, 5.000%
dated 03/31/99 to be repurchased at
$127,018 on 04/01/99 collateralized
by: $129,540 GNMA, 6.000% due
11/20/28.............................. 127,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,440,677)..................... 2,440,677
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 10
NATIONS INSTITUTIONAL RESERVES
Nations Treasury Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.1%
17,175 AIM Treasury Fund........................ $ 17,175
17,328 Dreyfus Treasury Cash Management Fund.... 17,328
----------
TOTAL INVESTMENT COMPANIES
(Cost $34,503).......................... 34,503
----------
TOTAL INVESTMENTS
(Cost $3,010,313*)............... 94.0% 3,010,313
----------
OTHER ASSETS AND
LIABILITIES (NET)................ 6.0%
Receivable for Fund shares sold.......... $ 659,541
Interest receivable...................... 10,145
Receivable from investment advisor....... 31
Prepaid expenses......................... 117
Payable for reverse repurchase
agreements.............................. (443,677)
Dividends payable........................ (8,350)
Payable for Fund shares redeemed......... (24,949)
Administration fee payable............... (62)
Shareholder servicing and distribution
fees payable............................ (558)
Due to custodian......................... (10)
Accrued Trustees' fees and expenses...... (54)
Accrued expenses and other liabilities... (574)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................... 191,600
----------
NET ASSETS........................ 100.0% $3,201,913
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold........................ $ (124)
Paid-in capital.......................... 3,202,037
----------
NET ASSETS............................... $3,201,913
==========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
CAPITAL CLASS SHARES:
($1,382,688,038/1,382,716,221 shares
outstanding)............................
$1.00
==========
LIQUIDITY CLASS SHARES:
($304,387,281/304,405,643 shares
outstanding)............................
$1.00
==========
ADVISER CLASS SHARES:
($344,905,986/344,925,903 shares
outstanding)............................
$1.00
==========
MARKET CLASS SHARES:
($1,169,931,309/1,170,000,010 shares
outstanding)............................
$1.00
==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
@ Denotes security, or a portion thereof, subject to repurchase under
reverse repurchase agreement as of March 31, 1999.
@@ Restricted Security (Note 5).
!! Security segregated as collateral for reverse repurchase agreement.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 11
NATIONS INSTITUTIONAL RESERVES
Nations Government Reserves
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 43.1%
FEDERAL FARM CREDIT BANK (FFCB) -- 0.8%
$ 6,000 5.500% 04/01/99.......................... $ 6,000
--------
FEDERAL HOME LOAN BANK (FHLB) -- 26.7%
10,000 4.770%+ 04/01/99++....................... 9,996
12,000 4.770%+ 04/01/99++....................... 12,000
13,000 4.781%+ 04/07/99++....................... 13,000
9,000 5.650% 04/09/99.......................... 9,000
6,901 Discount note 04/14/99................... 6,889
6,000 Discount note 04/15/99................... 5,989
4,000 5.705% 05/05/99.......................... 4,002
10,000 Discount note 05/21/99................... 9,934
8,000 Discount note 05/26/99................... 7,941
8,000 Discount note 05/28/99................... 7,940
8,000 Discount note 06/15/99................... 7,921
10,000 Discount note 06/25/99................... 9,888
12,000 5.510% 07/06/99.......................... 11,997
8,000 Discount note 07/14/99................... 7,894
8,000 Discount note 08/04/99................... 7,869
12,000 4.900% 01/14/00.......................... 11,999
10,000 4.910% 02/09/00.......................... 9,999
10,000 4.950% 02/24/00.......................... 9,994
12,000 5.100% 03/03/00.......................... 11,996
14,000 5.150% 03/08/00.......................... 13,990
--------
190,238
--------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) --6.0%
6,000 Discount note 04/09/99................... 5,994
8,500 Discount note 04/12/99................... 8,487
5,653 Discount note 04/15/99................... 5,643
5,300 Discount note 04/16/99................... 5,290
7,450 Discount note 04/26/99................... 7,425
10,000 Discount note 05/06/99................... 9,953
--------
42,792
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) -- 4.8%
6,000 Discount note 04/01/99................... 6,000
3,916 Discount note 04/02/99................... 3,915
8,000 5.002%+ 04/06/99++....................... 7,999
8,000 Discount note 04/07/99................... 7,994
8,000 5.630% 05/05/99.......................... 8,000
--------
33,908
--------
STUDENT LOAN MARKETING ASSOCIATION
(SLMA) -- 4.8%
12,000 4.720%+ 04/01/99++....................... 11,996
12,000 5.202%+ 04/06/99++....................... 12,000
10,000 4.930% 02/08/00.......................... 9,999
--------
33,995
--------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $306,933)......................... 306,933
--------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
REPURCHASE AGREEMENTS -- 54.1%
$170,000 Agreement with ABN-AMRO Bank, 5.050%
dated 03/31/99 to be repurchased at
$170,024 on 04/01/99 collateralized by:
$173,400 GNMA, 6.000% - 7.000% due
12/15/23 - 08/20/28..................... $170,000
170,000 Agreement with Credit Suisse First Boston
Corporation, 5.120% dated 03/31/99 to be
repurchased at $170,024 on 04/01/99
collateralized by: $175,289 FNMA,
0.000% - 6.370% due 07/02/99 - 02/25/14;
$279 FHLMC 6.580% due 01/07/14.......... 170,000
30,000 Agreement with Lehman Brothers, Inc.,
5.250% dated 03/31/99 to be repurchased
at $30,004 on 04/01/99 collateralized
by: $12,471 GNMA, 6.000% - 7.000% due
08/15/24 - 02/15/29; $18,127 GNMA II,
6.875% - 9.000% due 07/20/22 -
03/20/29................................ 30,000
15,000 Agreement with Societe Generale, 5.200%
dated 03/31/99 to be repurchased at
$15,002 on 04/01/99 collateralized by:
$15,459 GNMA, 6.625% due 09/20/26....... 15,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $385,000).......................... 385,000
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.0%
6,851 Dreyfus Treasury Cash Management
Fund...................................... 6,851
--------
TOTAL INVESTMENT COMPANIES
(Cost $6,851).............................. 6,851
--------
TOTAL INVESTMENTS
(Cost $698,784*).................... 98.2% 698,784
--------
OTHER ASSETS AND
LIABILITIES (NET).................. 1.8%
Receivable for Fund shares sold............ $ 14,149
Income receivable.......................... 2,017
Prepaid expenses........................... 95
Dividends payable.......................... (2,564)
Payable for Fund shares redeemed........... (157)
Investment advisory fee payable............ (79)
Administration fee payable................. (19)
Shareholder servicing and distribution fees
payable................................... (147)
Accrued Trustees' fees and expenses........ (12)
Accrued expenses and other liabilities..... (119)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)......................... 13,164
--------
NET ASSETS.......................... 100.0% $711,948
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 12
NATIONS INSTITUTIONAL RESERVES
Nations Government Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized gain on
investments sold.......................... $ 2
Paid-in capital............................ 711,946
--------
NET ASSETS................................. $711,948
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
CAPITAL CLASS SHARES:
($229,560,747/229,560,762 shares
outstanding).............................. $1.00
-----
-----
LIQUIDITY CLASS SHARES:
($59,551,263/59,551,238 shares
outstanding).............................. $1.00
-----
-----
ADVISER CLASS SHARES:
($88,836,122/88,836,114 shares
outstanding).............................. $1.00
-----
-----
MARKET CLASS SHARES:
($334,000,127/334,000,010 shares
outstanding).............................. $1.00
-----
-----
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at March 31, 1999.
++ Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 13
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 101.5%
ALABAMA -- 3.9%
$ 680 Arab, Alabama, Industrial Development
Board, IDR, (Syncro Corporation Project)
Series 1992, AMT, (SouthTrust Bank, N.A.
LOC),
3.250% 06/01/02**#....................... $ 680
5,000 Columbia, Alabama, Industrial Development
Board, PCR Refunding, (Alabama Power
Company Project) Series 1995D, 3.050%
10/01/22**............................... 5,000
1,100 Foley, Alabama, Industrial Development
Board, IDR, (Vulcan Inc. Project) Series
1985, (AmSouth Bank of Alabama LOC),
3.250% 12/01/00**#....................... 1,100
2,600 Northern Alabama, Pollution Control
Environmental Improvement Authority, PCR,
(Reynolds Metals Company Project) Series
1985, (Bank of Nova Scotia LOC), 3.100%
12/01/00**............................... 2,600
3,850 Phenix County, Alabama, Industrial
Development Board, Environmental
Improvement Revenue, (Georgia Kraft
Company Project) Series 1985, (Deutsche
Bank A.G. LOC), 3.100% 12/01/15**........ 3,850
2,470 Phenix County, Alabama, Industrial
Development Board, Environmental
Improvement Revenue, (Mead Coated Board,
Inc. Project) Series 1993A, AMT, (Toronto
Dominion Bank LOC), 3.150% 06/01/28**.... 2,470
--------
15,700
--------
ARIZONA -- 2.7%
7,700 Apache County, Arizona, Industrial
Development Authority, Revenue, (Tucson
Electric Power Company Project) Series
1983A, (Toronto Dominion Bank LOC),
3.050% 12/15/18**........................ 7,700
2,200 Maricopa County, Arizona, PCR Refunding,
(Arizona Public Service Company - Palo
Verde Project) Series 1994A, (Morgan
Guaranty Trust LOC), 3.150% 05/01/29**... 2,200
1,000 Pinal County, Arizona, Industrial
Development Authority, PCR Refunding,
(Magna Copper Company Project) Series
1992, (Banque Nationale de Paris LOC),
3.000% 12/01/11**........................ 1,000
--------
10,900
--------
ARKANSAS -- 1.6%
6,500 Crossett, Arkansas, PCR Refunding,
(Georgia-Pacific Corporation Project)
Series 1998, (SunTrust Bank LOC), 3.100%
08/01/04**............................... 6,500
--------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
CALIFORNIA -- 1.9%
$ 2,500 California, Higher Education Loan
Authority Inc., Student Loan Revenue, Sr.
Lien, Series 1992A-1, (SLMA Guaranty),
3.650% 07/01/99.......................... $ 2,500
1,800 Los Angeles, California, Regional Airports
Improvement Corporation, Lease Revenue,
(American Airlines, Inc. Project) Series
1984A, (Wachovia Bank of Georgia LOC),
3.100% 12/01/24**........................ 1,800
1,850 Los Angeles, California, Regional Airports
Improvement Corporation, Lease Revenue,
(LAX Two Corporation - Los Angeles
International Airport Project) Series
1985, (Societe Generale LOC),
3.100% 12/01/25**........................ 1,850
1,500 Los Angeles, California, Regional Airports
Improvement Corporation, Terminal
Facilities Revenue, (LAX Two
Corporation - Los Angeles International
Airport Project) Series 1989, AMT,
(Societe Generale LOC),
3.150% 12/01/25**........................ 1,500
--------
7,650
--------
COLORADO -- 3.5%
1,300 Colorado, Health Facilities Authority,
Revenue, (Goodwill Industries, Inc.
Project) Series 1994, (Bank One of
Colorado, N.A. LOC),
3.100% 12/01/04**#....................... 1,300
3,070 Colorado, Post-Secondary Educational
Facilities Authority, Economic
Development Revenue, (U.S. Swimming, Inc.
Project) Series 1996, (Bank One, N.A.
LOC),
3.100% 06/01/11**#....................... 3,070
2,000 Colorado, Student Obligation Board
Authority, Revenue, Series 1993B, AMT,
(GTD STD LNS, SLMA Guaranty),
3.100% 07/01/20**........................ 2,000
3,600 Colorado, Student Obligation Board
Authority, Revenue, Series 1993C-1, (SLMA
Guaranty),
3.000% 08/01/00**........................ 3,600
1,035 Larimer County, Colorado, Industrial
Development Revenue Refunding, (Ultimate
Support Systems Project) Series 1995A,
(Bank One of Colorado, N.A. LOC),
3.100% 06/01/10**#....................... 1,035
3,000 Moffat County, Colorado, PCR, (Tri-State
Colorado - Utah Electric Cooperative
Project) Series 1984, (AMBAC Insured,
Societe Generale SBPA), 3.050%
07/01/10**............................... 3,000
--------
14,005
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 14
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
FLORIDA -- 9.4%
$ 2,775 Brevard County, Florida, Housing Finance
Authority, Multi-Family Housing Revenue,
(Malabar Lakes, Ltd. Project) Series
1993, (U.S. Bank, N.A. LOC),
3.200% 12/01/10**#....................... $ 2,775
4,800 Florida, Housing Finance Agency, Multi-
Family Housing Revenue, (Lakes of
NorthDale Project) Series 1984D,
(SouthTrust Bank of Alabama LOC),
3.050% 06/01/07**........................ 4,800
1,845 Fort Walton Beach, Florida, IDR, (Burton
Golf, Inc. Project) Series 1996, AMT,
(Columbus Bank and Trust LOC),
3.300% 10/01/11**#....................... 1,845
7,000 Indian River County, Florida, Hospital
District Revenue, (Indian River Memorial
Hospital Project) Series 1985, (KBC Bank
N.V. LOC),
3.000% 10/01/15**........................ 7,000
700 Orange County, Florida, Health Facilities
Authority, Revenue, (Mayflower Retirement
Community Project) Series 1988, (Rabobank
Nederland LOC),
3.100% 03/01/18**........................ 700
3,000 Palm Beach County, Florida, Economic
Development Revenue, (YMCA Boynton Beach
Project) Series 1999, (SunTrust Bank of
South Florida LOC),
3.100% 01/01/24**........................ 3,000
5,500 Palm Beach County, Florida, Revenue,
(Norton Gallery School of Art Project)
Series 1995, (Northern Trust Company
LOC),
2.900% 05/01/25**........................ 5,500
3,000 Polk County, Florida, Industrial
Development Authority, Revenue, (Farmland
Hydro, LP Project) Series 1998, AMT,
(Raboland Nederland LOC),
3.100% 02/01/29**........................ 3,000
9,500 University of North Florida Foundation,
Inc., Capital Improvement Revenue, Series
1997, (First Union National Bank LOC),
3.050% 11/01/27**........................ 9,500
--------
38,120
--------
GEORGIA -- 10.3%
585 Burke County, Georgia, Development
Authority, PCR, (Georgia Power Company
Plant - Vogtle Project) Series 1995-3,
3.100% 09/01/25**........................ 585
1,140 Clayton County, Georgia, Housing
Authority, Multi-Family Housing Revenue
Refunding, (Chateau Forest Apartments
Project) Series 1990E, (FSA Insured,
Societe Generale SBPA),
3.000% 01/01/21**........................ 1,140
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 3,945 Clayton County, Georgia, Housing
Authority, Multi-Family Housing Revenue
Refunding, (Ten Oaks Apartments Project)
Series 1990F, (FSA Insured, Societe
Generale SBPA),
3.000% 01/01/21**........................ $ 3,945
2,000 Cobb County, Georgia, Development
Authority, Revenue Refunding, (Highlands
Park Associates Project) Series 1998,
(SunTrust Bank LOC),
3.100% 08/01/08**#....................... 2,000
1,900 Cobb County, Georgia, Residential Care
Facilities for the Elderly Authority,
Revenue Refunding, (Presbyterian Village
Austell Project) Series 1998, (SunTrust
Bank LOC),
3.100% 08/01/15**#....................... 1,900
3,585 Columbia County, Georgia, Residential Care
Facilities for the Elderly Authority,
Revenue, (Augusta Residential Center on
Aging Project) Series 1994, (SunTrust
Bank LOC),
3.100% 01/01/21**#....................... 3,585
3,000 De Kalb County, Georgia, Development
Authority, Revenue, (Marist School, Inc.
Project) Series 1999, (Suntrust Bank
LOC),
3.100% 03/01/24**#....................... 3,000
1,400 De Kalb County, Georgia, Housing
Authority, Multi-Family Housing Revenue,
(Cedar Creek Apartments Project) Series
1995, AMT, (General Electric Capital
Corporation Guaranty),
3.200% 12/01/20**#....................... 1,400
4,800 De Kalb County, Georgia, Housing
Authority, Multi-Family Housing Revenue,
(Crow Wood Arbor Associates, Ltd.
Project) Series 1985, (Wachovia Bank of
North Carolina LOC),
3.150% 12/01/07**#....................... 4,800
3,500 Fulton County, Georgia, Development
Authority, Revenue, (Alfred and Adele
Davis Academy, Inc. Project) Series 1996,
(SunTrust Bank LOC),
3.100% 12/01/10**#....................... 3,500
3,500 Fulton County, Georgia, Development
Authority, Revenue, (Georgia Tech
Athletic Association, Inc. Project)
Series 1995, (SunTrust Bank LOC),
3.100% 07/01/14**#....................... 3,500
3,000 Fulton County, Georgia, Development
Authority, Revenue, (Lovett School
Project) Series 1997, (SunTrust Bank
LOC),
3.100% 04/01/17**#....................... 3,000
1,150 Municipal Electric Authority of Georgia,
Subordinated Revenue, (Project Number One
Georgia MEAG) Series 1994D, (ABN-AMRO
Bank N.V. LOC),
3.050% 01/01/22**........................ 1,150
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 15
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GEORGIA -- (CONTINUED)
$ 7,000 Smyrna, Georgia, Housing Authority, Multi-
Family Housing Revenue, (Hills of Post
Village Series Project) Series 1995,
(FNMA Collateral Agreement),
3.000% 06/01/25**........................ $ 7,000
1,000 Smyrna, Georgia, Housing Authority, Multi-
Family Housing Revenue, (Post Apartment
Homes - Post Valley, LP Project) Series
1995, (FNMA Collateral Agreement),
3.000% 06/01/25**........................ 1,000
--------
41,505
--------
ILLINOIS -- 9.1%
2,700 Chicago, Illinois, O'Hare International
Airport Authority, Industrial Revenue,
(American Airlines, Inc. Project) Series
1983C, (Royal Bank of Canada LOC),
3.100% 12/01/17**........................ 2,700
2,700 Chicago, Illinois, O'Hare International
Airport Authority, Industrial Revenue,
(American Airlines, Inc. Project) Series
1983D, (Royal Bank of Canada LOC),
3.100% 12/01/17**........................ 2,700
2,900 Chicago, Illinois, O'Hare International
Airport Revenue, (American Airlines, Inc.
Project) Series 1983A, (Credit Suisse
First Boston LOC),
3.100% 12/01/17**........................ 2,900
5,600 Illinois State, Educational Facilities
Authority, Revenue, (Chicago Historical
Society Project) Series 1985, (American
National Bank & Trust Company LOC),
2.950% 12/01/25**#....................... 5,600
1,700 Illinois, Development Finance Authority,
IDR, (Quality Screw and Nut Company
Project) Series 1995, AMT, (NBD Bank
LOC),
3.200% 05/01/15**#....................... 1,700
870 Illinois, Development Finance Authority,
IDR, (Randolph Pickle Corporation
Project) Series 1992, AMT, (American
National Bank & Trust Company LOC),
3.200% 06/01/12**........................ 870
2,500 Illinois, Development Finance Authority,
IDR, (Unique Building Corporation
Project) Series 1989, AMT, (American
National Bank and Trust LOC),
3.200% 05/01/09**........................ 2,500
2,000 Illinois, Development Finance Authority,
PCR Refunding, (Commonwealth Edison
Company Project) Series 1994B, (ABN-AMRO
Bank N.V. LOC),
2.900% 10/15/14**#....................... 2,000
2,000 Illinois, Development Finance Authority,
Revenue, (Chicago Symphony Orchestra -
Orchestral Association Project) Series
1994, (Northern Trust Company LOC),
2.950% 12/01/28**........................ 2,000
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 2,000 Illinois, Development Finance Authority,
Revenue, (Park Ridge Youth Campus
Project) Series 1998, (Northern Trust
Company LOC),
3.100% 09/01/18**#....................... $ 2,000
9,000 Illinois, Development Finance Authority,
Revenue, (YMCA of Metropolitan Chicago
Project) Series 1996A, (Harris Trust &
Savings Bank LOC),
2.950% 06/01/26**........................ 9,000
1,400 Illinois, Educational Facilities
Authority, Revenue, (Northwestern
University Project) Series 1985,
3.000% 12/01/25**........................ 1,400
1,500 Lombard Village, Illinois, Industrial
Projects Revenue Refunding, (B&H
Partnership Project) Series 1995,
(Comerica Bank LOC),
3.350% 10/01/13**........................ 1,500
--------
36,870
--------
INDIANA -- 2.5%
760 Auburn, Indiana, Economic Development
Revenue, (R.J. Tower Corporation Project)
Series 1988, AMT, (Comerica Bank LOC),
3.150% 09/01/00**........................ 760
1,995 Indiana, Health Facilities Financing
Authority, Revenue Refunding, (Cardinal
Center, Inc. Project) Series 1996A, (Key
Bank N.A. LOC),
3.000% 12/01/16**#....................... 1,995
2,700 Indianapolis, Indiana, Economic
Development Revenue, (Edgcomb Metals
Company Project) Series 1983, (Banque
Nationale de Paris LOC),
2.950% 12/01/08**........................ 2,700
665 Kendallville, Indiana, Industrial Revenue,
(McCray Memorial Hospital Project) Series
1994, (NBD Bank LOC),
3.000% 01/01/04**#....................... 665
3,800 Princeton, Indiana, PCR Refunding, (PSI
Energy, Inc. Project) Series 1996,
(Canadian Imperial Bank Corporation LOC),
3.150% 03/01/19**........................ 3,800
265 Rockport, Indiana, PCR Refunding, (AEP
Generating Company Project) Series 1995B,
(AMBAC Insured, Bank of New York SBPA),
3.150% 07/01/25**........................ 265
--------
10,185
--------
KENTUCKY -- 2.5%
1,092 Jefferson County, Kentucky, IDR, (Belknap,
Inc. Project) Series 1984, (Bank One of
Kentucky, N.A. LOC),
2.950% 12/01/14**#....................... 1,092
1,440 Jefferson County, Kentucky, Industrial
Building Revenue, (Seven Counties
Services, Inc. Project) Series 1996,
(Bank One of Kentucky, N.A. LOC),
3.000% 06/01/11**#....................... 1,440
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 16
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
KENTUCKY -- (CONTINUED)
$ 1,700 Jeffersontown, Kentucky, Industrial
Building Revenue, (Raque Food Systems,
Inc. Project) Series 1995, AMT, (PNC
Bank, N.A. LOC),
3.250% 04/01/20**#....................... $ 1,700
2,550 Kentucky, Housing Corporation, Housing
Revenue, Series 1999C, AMT,
3.200% 12/31/99.......................... 2,550
3,200 Lexington-Fayette County, Kentucky, Urban
County Airport Corporation, Revenue,
(First Mortgage Project) Series 1994A,
AMT, (Credit Local de France LOC),
3.200% 04/01/24**........................ 3,200
--------
9,982
--------
LOUISIANA -- 3.9%
8,000 Ascension Parish, Louisiana, PCR
Refunding, (Borden, Inc. Project) Series
1992, (Credit Suisse First Boston LOC),
3.050% 12/01/09**........................ 8,000
2,300 Lake Charles, Louisiana, Harbor and
Terminal District, Revenue, (Citgo
Petroleum Corporation Project) Series
1984, (Westdeutsche Landesbank LOC),
3.050% 08/01/07**........................ 2,300
4,500 South Louisiana Ports Commission, Marine
Terminal Facilities Revenue Refunding,
(Occidental Petroleum Corporation
Project) Series 1991, (UBS AG LOC),
3.000% 07/01/21**........................ 4,500
1,200 St. Charles Parish, Louisiana, PCR
Refunding, (Shell Oil Company Project)
Series 1995,
3.100% 10/01/25**........................ 1,200
--------
16,000
--------
MARYLAND -- 3.7%
15,000 Baltimore, Maryland, Industrial
Development Authority, IDR, (Baltimore
Capital Acquisition Project) Series 1986,
(Bayerische Landesbank LOC),
2.950% 08/01/16**........................ 15,000
--------
MICHIGAN -- 2.4%
3,500 Michigan State, Housing Development
Authority, Housing Revenue, (Shoal Creek
Project) Series 1985, (Wachovia Bank
LOC),
3.000% 10/01/07**........................ 3,500
3,200 University of Michigan, Board of Regents,
Revenue, (University of Michigan
Hospitals Project) Series 1995A,
3.150% 12/01/27**........................ 3,200
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
MICHIGAN -- (CONTINUED)
$ 2,400 University of Michigan, Hospital Revenue
Refunding, (University of Michigan
Hospitals Project) Series 1992A,
3.150% 12/01/19**........................ $ 2,400
800 University of Michigan, Hospital Revenue,
(Medical Service Plans Project) Series
1995A,
3.150% 12/01/27**........................ 800
--------
9,900
--------
MINNESOTA -- 0.6%
2,410 Minneapolis, Minnesota, Revenue, (Catholic
Charities Project) Series 1996, (Norwest
Bank Minnesota LOC),
3.100% 11/01/16**........................ 2,410
--------
MISSISSIPPI -- 0.6%
2,500 Flowood, Mississippi, IDR, (BSC Steel,
Inc. Project) Series 1986, AMT, (PNC
Bank, N.A. LOC),
3.250% 11/01/01**#....................... 2,500
--------
MISSOURI -- 2.1%
1,800 Missouri State, Health and Educational
Facilities Authority, Facilities Revenue,
(Washington University Project) Series
1985B, (Morgan Guaranty Trust SBPA),
3.000% 09/01/10**........................ 1,800
6,700 Missouri State, Health and Educational
Facilities Authority, Health Facilities
Revenue Refunding, (Sisters of Mercy
Health Care System Project) Series 1992B,
(ABN-AMRO N.V. Chicago SBPA),
3.000% 06/01/14**........................ 6,700
--------
8,500
--------
NEBRASKA -- 1.3%
5,195 Nebraska Help, Inc., Student Loan Revenue,
Series 1986B, AMT, (SLMA Guaranty),
3.200% 12/01/16**........................ 5,195
--------
NEVADA -- 0.7%
2,800 Clark County, Nevada, IDR, (Cogeneration
Association I Project) Series 1991, AMT,
(Canadian Imperial Bank Corporation LOC),
3.300% 11/01/21**........................ 2,800
--------
NEW MEXICO -- 1.5%
5,900 Dona Ana County, New Mexico, IDR, (Foamex
Products, Inc. Project) Series 1985,
(Bank of Nova Scotia LOC), 3.000%
11/01/13**#.............................. 5,900
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 17
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NORTH CAROLINA -- 1.9%
$ 7,500 Wake County, North Carolina, Industrial
Facilities and Pollution Control
Financing Authority, PCR, (Carolina Power
& Light Company Project) Series 1987,
AMT, (First Union National Bank LOC),
3.150% 03/01/17**........................ $ 7,500
--------
NORTH DAKOTA -- 0.2%
900 Grand Forks, North Dakota, Health Care
Facilities Revenue, (The United Hospital
Obligated Group Project) Series 1996A,
(La Salle National Bank LOC),
3.100% 12/01/25**#....................... 900
--------
OHIO -- 7.5%
940 Centerville, Ohio, Health Care Revenue,
(Bethany Lutheran Village Hospital
Project), Series 1994, (PNC Bank of Ohio,
N.A. LOC),
3.050% 11/01/13**#....................... 940
5,000 Clinton County, Ohio, Airport Facilities
Revenue Refunding, (Wilmington Air Park,
Inc. Project) Series 1991, (Wachovia Bank
of North Carolina LOC),
3.050% 06/01/11**#....................... 5,000
1,100 Cuyahoga County, Ohio, Hospital
Improvement Revenue, (University Hospital
of Cleveland Project) Series 1985, (Chase
Manhattan Bank LOC),
3.050% 01/01/16**........................ 1,100
875 Cuyahoga County, Ohio, IDR Refunding,
(Pleasant Lakes Associates Project)
Series 1995, (Key Bank, N.A. LOC),
3.000% 05/04/11**#....................... 875
965 Greene County, Ohio, IDR, (FC, Ltd. - AFC
Stamping Project) Series 1995, AMT, (Key
Bank, N.A. LOC),
3.100% 09/01/16**#....................... 965
10,000 Lucas County, Ohio, Facilities Improvement
Revenue, (Toledo Zoological Society
Project) Series 1997, (Key Bank, N.A.
LOC),
2.950% 10/01/05**#....................... 10,000
2,020 Lucas County, Ohio, IDR, (Dynamic Dies,
Inc. Project) Series 1997, AMT, (National
City Bank LOC),
3.250% 07/01/09**........................ 2,020
2,279 Ohio, Housing Financing Agency, Multi-
Family Housing Revenue, (Kenwood
Congregation - Retirement Project) Series
1985, (Morgan Guaranty Trust LOC),
3.000% 12/01/15**........................ 2,279
5,000 Ottawa County, Ohio, BAN, Revenue, Series
1998,
4.000% 08/06/99.......................... 5,005
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
OHIO -- (CONTINUED)
$ 1,200 Summit County, Ohio, IDR, (Oliver Printing
Company, Inc. Project) Series 1997, AMT,
(Bank One of Akron, N.A. LOC),
3.200% 02/01/07**#....................... $ 1,200
1,055 Toledo-Lucas County, Ohio, Port Authority,
Facilities Improvement Revenue, (YMCA of
Greater Toledo Project) Series 1996,
(Fifth Third Bank of Northwestern Ohio
LOC),
3.200% 12/01/21**#....................... 1,055
--------
30,439
--------
OREGON -- 1.0%
2,000 Port of Portland, Oregon, IDR Refunding,
(Schnitzer Steel Products Project) Series
1987, (Comerica Bank LOC),
3.000% 11/01/07**#....................... 2,000
2,100 Port of Portland, Oregon, Special
Obligation Revenue, (Horizon Air
Industries, Inc. Project) Series 1997,
(Bank of Montreal LOC),
3.150% 06/15/27**........................ 2,100
--------
4,100
--------
PENNSYLVANIA -- 2.0%
3,100 Elk County, Pennsylvania, Industrial
Development Authority, Revenue, (Clarion
Sintered Metals Project) Series 1998,
AMT, (PNC Bank, N.A. LOC),
3.250% 03/01/09**#....................... 3,100
2,200 Philadelphia, Pennsylvania, Authority for
Industrial Development, Revenue,
(Institute for Cancer Research - Fox
Chase Cancer Center Project) Series 1997,
(Morgan Guaranty Trust LOC),
3.100% 07/01/25**#....................... 2,200
1,760 Schuylkill County, Pennsylvania,
Industrial Development Authority,
Revenue, (Bon-Ton Stores Project) Series
1992, AMT, (PNC Bank, N.A. LOC),
3.250% 02/01/12**#....................... 1,760
1,240 Schuylkill County, Pennsylvania,
Industrial Development Authority,
Revenue,
(S. Grumbacher and Son Project)
Series 1990, (PNC Bank, N.A. LOC),
3.150% 02/01/12**#....................... 1,240
--------
8,300
--------
SOUTH CAROLINA -- 2.8%
4,000 Anderson County, South Carolina, IDR,
(Mikron Corporation Project) Series 1998,
AMT, (UBS AG LOC),
3.200% 11/01/12**#....................... 4,000
1,000 Cherokee County, South Carolina,
Industrial Revenue Refunding, (Holmberg
Electronic Corporation Project) Series
1989, (Wachovia Bank & Trust Company of
North Carolina, N.A. LOC),
3.500% 11/01/04**#....................... 1,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 18
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
SOUTH CAROLINA -- (CONTINUED)
$ 1,740 South Carolina, Jobs Economic Development
Authority, Development Revenue,
(Spartanburg YMCA Project) Series 1996,
(First Union National Bank LOC),
3.100% 06/01/18**#....................... $ 1,740
3,100 South Carolina, Jobs Economic Development
Authority, Health Facilities Revenue,
(Greenville Baptist Retirement Community
Project) Series 1997, (Wachovia Bank of
North Carolina LOC),
3.050% 10/01/19**#....................... 3,100
1,000 South Carolina, Jobs Economic Development
Authority, IDR, (Chambers Oakridge
Landfill Project) Series 1990, AMT,
(Morgan Guaranty Trust LOC),
3.200% 12/01/01**#....................... 1,000
700 York County, South Carolina, PCR,
(National Rural Utilities Cooperative -
North Carolina Electricities Project)
Series 1984N-2, (CFC Insured),
3.050% 09/15/14**........................ 700
--------
11,540
--------
SOUTH DAKOTA -- 1.0%
730 South Dakota, Economic Development
Financing Authority, IDR Refunding,
(Lomar Development Company Project)
Series 1996B, AMT, (U.S. Bank, N.A. LOC),
3.350% 08/01/08**#....................... 730
3,410 South Dakota, Housing Development
Authority, Revenue, (Homeownership
Mortgage Program) Series 1992A, AMT,
7.650% 05/01/99.......................... 3,422
--------
4,152
--------
TENNESSEE -- 4.1%
1,100 Chattanooga-Hamilton County, Tennessee,
Hospital Authority, Revenue Refunding,
(Erlanger Medical Center) Series 1987,
(Morgan Guaranty Trust LOC),
3.100% 10/01/17**........................ 1,100
2,000 Dickson County, Tennessee, Industrial
Development Board, Revenue, (The Jackson
Foundation-Renaissance Learning Center
Project) Series 1997, (SunTrust Bank of
Nashville LOC),
3.100% 11/01/12**#....................... 2,000
6,685 Franklin County, Tennessee, Health and
Educational Facilities Board, Revenue,
(University of the South Project) Series
1998B, (AmSouth Bank of Alabama LOC),
3.050% 09/01/18**........................ 6,685
1,265 Jefferson City, Tennessee, IDR, (BA
Properties Project) Series 1994, AMT,
(American National Bank & Trust LOC),
3.050% 11/01/24**........................ 1,265
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
TENNESSEE -- (CONTINUED)
$ 400 Metropolitan Nashville, Tennessee, Airport
Authority, Special Facilities Revenue,
(American Airlines, Inc. Project) Series
1995A, (Credit Suisse First Boston LOC),
3.100% 10/01/12**........................ $ 400
3,700 Monroe County, Tennessee, Industrial
Development Board, IDR, (American Transit
Corporation Project) Series 1986,
(BankBoston LOC),
3.200% 08/01/06**........................ 3,700
1,600 Springfield, Tennessee, Industrial
Development Board, Revenue, (All American
Homes of Tennessee Project) Series 1994,
AMT, (NBD Bank LOC),
3.200% 11/01/09**#....................... 1,600
--------
16,750
--------
TEXAS -- 9.8%
1,000 Grapevine, Texas, Industrial Development
Corporation, Revenue, (American Airlines,
Inc. Project) Series 1984A-1, (Morgan
Guaranty Trust LOC),
3.100% 12/01/24**........................ 1,000
1,000 Grapevine, Texas, Industrial Development
Corporation, Revenue, (American Airlines,
Inc. Project) Series 1984A-2, (Morgan
Guaranty Trust LOC),
3.100% 12/01/24**........................ 1,000
1,000 Guadalupe-Blanco, Texas, River Authority,
Revenue Refunding, (Central Power & Light
Company Project) Series 1995, (ABN AMRO
Bank N.V. LOC),
3.150% 11/01/15**........................ 1,000
3,100 Harris County, Texas, Health Facilities
Development Corporation, Hospital
Revenue, (Methodist Hospital Project)
Series 1997, (Morgan Guaranty SBPA),
3.100% 12/01/26**........................ 3,100
2,000 Harris County, Texas, Health Facilities
Development Revenue, (Methodist Hospital
Project) Series 1994, (Morgan Guaranty
SBPA),
3.100% 12/01/25**........................ 2,000
2,000 Harris County, Texas, Industrial
Development Corporation, PCR, (Exxon
Corporation Project) Series 1984A,
3.050% 03/01/24**........................ 2,000
2,200 Harris County, Texas, Industrial
Development Corporation, PCR, (Exxon
Corporation Project), Series 1984B,
3.050% 03/01/24**........................ 2,200
600 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984A-1, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 600
700 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984A-2, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 19
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
TEXAS -- (CONTINUED)
$ 300 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984A-3, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ $ 300
930 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984A-4, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 930
900 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984B-1, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 900
700 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984B-2, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 700
1,100 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984B-3, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 1,100
500 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American Airlines,
Inc. Project) Series 1984B-4, (Royal Bank
of Canada LOC),
3.100% 12/01/14**........................ 500
4,300 McAllen, Texas, Health Facilities
Development Revenue, (McAllen Associates
Number One Project) Series 1984, (PNC
Bank, N.A. LOC),
3.150% 12/01/24**........................ 4,300
1,200 Nueces County, Texas, Health Facilities
Development Corporation, Revenue,
(Driscoll Foundation Childrens Hospital
Project) Series 1985, (Bank One of Texas,
N.A. LOC),
3.050% 07/01/15**........................ 1,200
4,700 Sabine River Authority, Texas, PCR, (Texas
Utilities Electric Company Project)
Series 1995A, AMT, (Morgan Guaranty Trust
LOC),
3.300% 04/01/30**........................ 4,700
5,000 Texas, Municipal Gas Corporation, Gas
Reserves Revenue, Sr. Lien, Series 1998,
(FSA Insured, Societe Generale SBPA),
3.000% 01/15/23**........................ 5,000
1,000 Trinity River, Tennessee, Industrial
Development Authority, Revenue, (Toys R
Us - Nytex Inc. Project) Series 1984,
(Bankers Trust Company LOC),
3.125% 11/01/14**#....................... 1,000
5,100 West Side Calhoun County, Texas,
Development Corporation, PCR, (Sohio
Chemical Corporation Project) Series
1985, (BP Amoco plc Guaranty)
3.100% 12/01/15**........................ 5,100
--------
39,330
--------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
<C> <S> <C>
UTAH -- 0.3%
$ 1,200 Salt Lake County, Utah, PCR Refunding,
(British Petroleum Company - Service
Station Holdings, Inc. Project) Series
1994B, (BP Amoco plc Guarantee),
3.100% 08/01/07**........................ $ 1,200
--------
VIRGINIA -- 4.5%
5,800 Albemarle County, Virginia, Industrial
Development Authority, Health Services
Revenue, (University of Virginia Health
Services Foundation Project) Series 1996,
(First Union National Bank LOC),
3.050% 02/01/26**........................ 5,800
7,125 Madison County, Virginia, Industrial
Development Authority, Revenue, (Madison
Wood Preservers Project) Series 1998,
AMT, (Wachovia Bank of North Carolina
LOC),
3.150% 06/01/13**#....................... 7,125
3,595 Richmond, Virginia, Equipment Notes GO,
Series 1998, (State Aid Withholding),
4.250% 05/15/99.......................... 3,597
1,575 Winchester, Virginia, Industrial
Development Authority, Revenue, (Midwesco
Filter Resource, Inc. Project) Series
1995, (Harris Trust & Savings Bank LOC),
3.350% 08/01/07**........................ 1,575
--------
18,097
--------
WASHINGTON -- 0.2%
800 Port of Skagit County, Washington,
Industrial Development Corporation,
Revenue, (Cascade Clear Water Company
Project) Series 1995, AMT, (Key Bank N.A.
LOC),
3.100% 12/01/20**#....................... 800
--------
WEST VIRGINIA -- 0.3%
1,200 Ohio County, West Virginia, Industrial
Development Revenue, (Ohio Valley -
Clarksburg Drug Company Project) Series
1986, AMT, (PNC Bank of Ohio, N.A. LOC),
3.150% 12/01/01**#....................... 1,200
--------
WISCONSIN -- 1.7%
3,000 Menasha, Wisconsin, Joint School District,
TRAN, Series 1998,
3.150% 09/30/99.......................... 3,001
940 Milwaukee, Wisconsin, Industrial
Development Revenue, (Mandel Company
Project) Series 1997, AMT, (U.S. Bank,
N.A. LOC)
3.350% 04/01/07**........................ 940
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 20
NATIONS INSTITUTIONAL RESERVES
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
WISCONSIN -- (CONTINUED)
$ 3,000 Watertown, Wisconsin, Unified School
District, TRAN, Series 1998,
3.100% 10/28/99.......................... $ 3,001
--------
6,942
--------
TOTAL MUNICIPAL BONDS AND NOTES (Cost
$410,872)................................ 410,872
--------
</TABLE>
<TABLE>
SHARES
(000)
--------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 1.5%
2,050 AIM Tax-Exempt Fund........................ 2,050
4,125 Federated Tax-Exempt Money
Market Fund............................... 4,125
--------
TOTAL INVESTMENT COMPANIES
(Cost $6,175)............................. 6,175
--------
TOTAL INVESTMENTS
(Cost $417,047*)................... 103.0% 417,047
--------
OTHER ASSETS AND LIABILITIES (NET).. (3.0)%
Receivable for Fund shares sold............ $ 2,028
Interest receivable........................ 1,518
Receivable from investment advisor......... 115
Prepaid expenses........................... 89
Dividends payable.......................... (971)
Payable for Fund shares redeemed........... (14,391)
Administration fee payable................. (11)
Shareholder servicing and distribution fees
payable................................... (75)
Due to custodian........................... (38)
Accrued Trustees' fees and expenses........ (12)
Accrued expenses and other liabilities..... (204)
--------
TOTAL OTHER ASSETS AND LIABILITIES (NET)...
(11,952)
--------
NET ASSETS.......................... 100.0% $405,095
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold.......................... $ (2)
Paid-in capital............................ 405,097
--------
NET ASSETS................................. $405,095
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
CAPITAL CLASS SHARES:
($134,267,957/134,268,561 shares
outstanding)..............................
$1.00
========
LIQUIDITY CLASS SHARES:
($68,392,950/68,393,298 shares
outstanding)..............................
$1.00
========
ADVISER CLASS SHARES:
($55,434,379/55,434,646 shares
outstanding)..............................
$1.00
========
MARKET CLASS SHARES:
($146,999,271/147,000,010 shares
outstanding)..............................
$1.00
========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at March 31, 1999. These securities are subject to demand features of
either one, seven or thirty days.
# 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 March 31, 1999 (as a percentage of net assets):
Pollution Control Revenue 14.4%
Industrial Facilities Revenue 13.6%
Healthcare Revenue 12.1%
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 21
NATIONS INSTITUTIONAL RESERVES
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 1999
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CFC Cooperative Finance Corporation
FFCB Federal Farm Credit Bank
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FMAC Federal Mortgage Acceptance Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GNMA Government National Mortgage Association
GO General Obligation
GTD STD LNS Guaranteed Student Loan
IDR Industrial Development Revenue
LOC Letter of Credit
MTN Medium Term Note
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
SLMA Student Loan Marketing Association
TRAN Tax and Revenue Anticipation Note
TVA Tennessee Valley Authority
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 22
NATIONS INSTITUTIONAL RESERVES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
CASH RESERVES MONEY MARKET RESERVES
---------------------------------- ------------------------------------
FOR THE PERIOD
MAY 16, 1998 TO FOR THE PERIOD
PERIOD ENDED YEAR ENDED MARCH 31, DECEMBER 1, 1997
MARCH 31, 1999(a) APRIL 30, 1998 1999(b) TO MAY 15, 1998(c)
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................. $363,399 $215,694 $35,851 $3,690
-------- -------- ------- ------
EXPENSES:
Investment advisory fee................... 20,046 11,266 2,121 64
Administration fee........................ 6,682 3,755 707 50
Transfer agent fees....................... 155 55 26 16
Custodian fees............................ 459 212 59 11
Trustees' fees and expenses............... 27 94 27 --
Registration and filing fees.............. 1,128 632 162 4
Legal and audit fees...................... 77 67 47 13
Interest expense.......................... -- 11 -- --
Other..................................... 181 250 68 13
-------- -------- ------- ------
Subtotal.............................. 28,755 16,342 3,217 171
Shareholder servicing and distribution
fees:
Capital Class Shares.................... -- -- -- --
Liquidity Class Shares.................. 10,485 4,673 7 --
Adviser Class Shares.................... 1,790 1,294 9 --
Market Class Shares..................... 4,718 2,186 2,070 --
-------- -------- ------- ------
Total expenses........................ 45,748 24,495 5,303 171
Fees waived by investment advisor,
administrator and/or distributor........ (24,380) (13,155) (1,835) (44)
Fees reduced by credits allowed by the
custodian............................... (4) -- --* --
-------- -------- ------- ------
Net expenses.......................... 21,364 11,340 3,468 127
-------- -------- ------- ------
NET INVESTMENT INCOME..................... 342,035 204,354 32,383 3,563
-------- -------- ------- ------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS... (17) 30 1 --
-------- -------- ------- ------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............... $342,018 $204,384 $32,384 $3,563
======== ======== ======= ======
</TABLE>
- ---------------
* Amount represents less than $500.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 through March
31, 1999.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 15.
(c) Represents financial information for the period December 1, 1997 to May 15,
1998 for the Emerald Prime Advantage Institutional Fund, which was
reorganized into Money Market Reserves on May 22, 1998. Certain amounts have
been reclassified to conform to the current period's presentation.
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 23
NATIONS INSTITUTIONAL RESERVES
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
TREASURY RESERVES GOVERNMENT RESERVES MUNICIPAL RESERVES
---------------------------------- ---------------------------------- ----------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 1999(a) APRIL 30, 1998 MARCH 31, 1999(a) APRIL 30, 1998 MARCH 31, 1999(a) APRIL 30, 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$97,440 $53,421 $30,468 $26,586 $10,605 $9,190
------- ------- ------- ------- ------- ------
5,656 2,857 1,740 1,418 963 736
1,885 952 580 473 321 246
15 101 21 45 19 41
160 101 69 42 34 24
20 17 22 12 25 7
558 102 53 99 104 69
23 29 32 11 31 12
-- -- -- -- -- 48
117 98 54 19 39 2
------- ------- ------- ------- ------- ------
8,434 4,257 2,571 2,119 1,536 1,185
-- -- -- -- -- --
3,043 2,272 376 288 446 455
726 606 229 117 128 73
3,545 914 1,278 1,013 537 433
------- ------- ------- ------- ------- ------
15,748 8,049 4,454 3,537 2,647 2,146
(7,437) (4,476) (1,845) (1,636) (1,309) (1,117)
(7) -- (1) -- -- --
------- ------- ------- ------- ------- ------
8,304 3,573 2,608 1,901 1,338 1,029
------- ------- ------- ------- ------- ------
89,136 49,848 27,860 24,685 9,267 8,161
------- ------- ------- ------- ------- ------
(2) -- 2 -- (1) --
------- ------- ------- ------- ------- ------
$89,134 $49,848 $27,862 $24,685 $ 9,266 $8,161
======= ======= ======= ======= ======= ======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 24
NATIONS INSTITUTIONAL RESERVES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CASH RESERVES
------------------------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
3/31/99(a) 4/30/98 4/30/97
------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 342,035 $ 204,354 $ 89,781
Net realized gain/(loss) on investments..................... (17) 30 1
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from
operations................................................ 342,018 204,384 89,782
Distributions to shareholders from net investment income:
Capital Class Shares...................................... (192,707) (122,110) (55,426)
Liquidity Class Shares.................................... (62,927) (29,597) (9,676)
Adviser Class Shares...................................... (35,908) (27,433) (16,293)
Market Class Shares....................................... (50,493) (25,214) (8,386)
Net increase/(decrease) in net assets from shares of
beneficial interest transactions.......................... 2,678,152 2,796,684 1,643,734
---------- ---------- ----------
Net increase/(decrease) in net assets....................... 2,678,135 2,796,714 1,643,735
NET ASSETS:
Beginning of period......................................... 5,481,348 2,684,634 1,040,899
---------- ---------- ----------
End of period............................................... $8,159,483 $5,481,348 $2,684,634
========== ========== ==========
Undistributed net investment income/(distributions in excess
of net investment income) at end of period................ $ 27 $ -- $ --
========== ========== ==========
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 through March
31, 1999.
(b) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 15. The numbers reflected are for the period May 16, 1998 through March
31, 1999.
(c) Represents financial information for the period December 1, 1997 to May 15,
1998 for the Emerald Prime Advantage Institutional Fund, which was
reorganized into Money Market Reserves on May 22, 1998. Certain amounts have
been reclassified to conform to the current period's presentation.
(d) Represents financial information for the year ended November 30, 1997 for
the Emerald Prime Advantage Institutional Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 25
NATIONS INSTITUTIONAL RESERVES
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONEY MARKET RESERVES TREASURY RESERVES
----------------------------------------- --------------------------------------
Period Ended PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
3/31/99(b) 5/15/98(c) 11/30/97(d) 3/31/99(a) 4/30/98 4/30/97
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 32,383 $ 3,563 $ 7,902 $ 89,136 $ 49,848 $ 30,734
1 -- -- (2) -- 7
---------- -------- -------- ---------- ---------- --------
32,384 3,563 7,902 89,134 49,848 30,741
(11,499) (3,563) (7,902) (23,600) (13,736) (17,377)
(38) -- -- (16,510) (13,290) (1,979)
(220) -- -- (13,783) (12,530) (7,166)
(20,626) -- -- (35,243) (10,292) (4,211)
1,358,049 (59,028) 44,864 1,724,192 649,521 336,357
---------- -------- -------- ---------- ---------- --------
1,358,050 (59,028) 44,864 1,724,190 649,521 336,365
118,880 177,908 133,044 1,477,723 828,202 491,837
---------- -------- -------- ---------- ---------- --------
$1,476,930 $118,880 $177,908 $3,201,913 $1,477,723 $828,202
========== ======== ======== ========== ========== ========
$ 4 $ 4 $ -- $ -- $ -- $ --
========== ======== ======== ========== ========== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 26
NATIONS INSTITUTIONAL RESERVES
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT RESERVES MUNICIPAL RESERVES
-------------------------------------- ----------------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
3/31/99(a) 4/30/98 4/30/97 3/31/99(a) 4/30/98 4/30/97
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
Net investment income..................... $ 27,860 $ 24,685 $ 13,799 $ 9,267 $ 8,161 $ 6,107
Net realized gain/(loss) on investments... 2 -- 1 (1) -- --
-------- -------- -------- -------- -------- --------
Net increase/(decrease) in net assets
resulting from operations............... 27,862 24,685 13,800 9,266 8,161 6,107
Distributions to shareholders from net
investment income:
Capital Class Shares.................... (8,013) (9,042) (3,122) (3,033) (2,352) (2,109)
Liquidity Class Shares.................. (2,138) (1,783) (320) (1,555) (1,798) (1,061)
Adviser Class Shares.................... (4,419) (2,427) (1,631) (1,437) (948) (236)
Market Class Shares..................... (13,290) (11,433) (8,726) (3,242) (3,063) (2,702)
Net increase/(decrease) in net assets from
shares of beneficial interest
transactions............................ 143,903 192,840 208,784 155,836 49,287 89,247
-------- -------- -------- -------- -------- --------
Net increase/(decrease) in net assets..... 143,905 192,840 208,785 155,835 49,287 89,246
NET ASSETS:
Beginning of period....................... 568,043 375,203 166,418 249,260 199,973 110,727
-------- -------- -------- -------- -------- --------
End of period............................. $711,948 $568,043 $375,203 $405,095 $249,260 $199,973
======== ======== ======== ======== ======== ========
Undistributed net investment
income/(distributions in excess of net
investment income) at end of period..... $ -- $ -- $ -- $ -- $ -- $ --
======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30. The numbers reflected are for the period May 1, 1998 through March
31, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 27
NATIONS INSTITUTIONAL RESERVES
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
TREASURY RESERVES
(000)
----------------------------------------------------
PERIOD ENDED YEAR ENDED
MARCH 31, 1999 APRIL 30, 1998
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash flows from operating and investing activities:
Investment income received................................ $ 89,753 $ 50,940
Payment of operating expenses............................. (5,764) (3,291)
Net proceeds from reverse repurchase agreements
outstanding............................................. 286,926 57,775
Net purchases of short-term investments................... (1,233,531) (704,246)
----------- -----------
Cash used by operating and investing activities........... $(862,616) $(598,822)
Cash flows from financing activities:
Proceeds from shares sold+................................ 9,498,054 8,168,860
Payments on shares redeemed............................... (8,587,951) (7,544,434)
Distributions paid*....................................... (47,497) (25,452)
----------- -----------
Cash provided by financing activities....................... 862,606 598,974
Increase/(decrease) in cash............................... (10) 152
Cash at beginning of period............................... -- (152)
--------- ---------
Cash at end of period..................................... $ (10) $ --
========= =========
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........ $ 89,134 $ 49,848
Increase in investments................................... $(1,231,127) $ (705,532)
Increase in payable for reverse repurchase agreement
transactions............................................ 286,926 57,775
Increase in interest and dividends receivable............. (10,089) (1,195)
(Increase)/decrease in other assets....................... 1,875 (22)
Increase in accrued expenses and other payables........... 665 304
----------- -----------
Cash provided by/(used by) operating and investing
activities................................................ $(862,616) $(598,822)
========= =========
</TABLE>
- ---------------
* Non-cash activities include reinvestment of dividends of $35,122 and $25,096,
respectively.
+ Non-cash activities include shares issued in exchange for Emerald Treasury
Advantage Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 28
NATIONS INSTITUTIONAL RESERVES
SCHEDULES OF CAPITAL STOCK ACTIVITY*
<TABLE>
<CAPTION>
CASH RESERVES MONEY MARKET RESERVES
------------------------------------------ -------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED
MARCH 31, APRIL 30, APRIL 30, MARCH 31, MAY 15, NOVEMBER 30,
1999(a) 1998 1997(b) 1999(c)(d) 1998(e) 1997(f)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold.......................... $41,082,851 $ 27,029,347 $ 8,400,299 $ 2,271,169 $ 188,673 $ 386,649
Issued as reinvestment of
dividends................... 76,006 64,512 25,009 5,977 -- --
Redeemed...................... (39,830,977) (25,726,549) (7,348,719) (1,800,552) (247,701) (341,785)
------------ ------------ ----------- ----------- --------- ---------
Net increase/(decrease)....... $ 1,327,880 $ 1,367,310 $ 1,076,589 $ 476,594 $ (59,028) $ 44,864
============ ============ =========== =========== ========= =========
LIQUIDITY CLASS SHARES:
Sold.......................... $ 9,418,989 $ 8,183,907 $ 4,463,042 $ 38,821 $ -- $ --
Issued as reinvestment of
dividends................... 42,070 18,291 5,878 32 -- --
Redeemed...................... (9,145,542) (7,514,186) (4,084,515) (37,775) -- --
------------ ------------ ----------- ----------- --------- ---------
Net increase/(decrease)....... $ 315,517 $ 688,012 $ 384,405 $ 1,078 $ -- $ --
============ ============ =========== =========== ========= =========
ADVISER CLASS SHARES:
Sold.......................... $ 4,388,779 $ 3,993,186 $ 1,638,784 $ 83,156 $ -- $ --
Issued as reinvestment of
dividends................... 32,287 20,314 3,465 46 -- --
Redeemed...................... (4,223,311) (3,588,638) (1,792,509) (76,825) -- --
------------ ------------ ----------- ----------- --------- ---------
Net increase/(decrease)....... $ 197,755 $ 424,862 $ (150,260) $ 6,377 $ -- $ --
============ ============ =========== =========== ========= =========
MARKET CLASS SHARES:
Sold.......................... $ 1,898,000 $ 1,504,300 $ 794,300 $ 1,771,500 $ -- $ --
Issued as reinvestment of
dividends................... -- -- -- -- -- --
Redeemed...................... (1,061,000) (1,187,800) (461,300) (897,500) -- --
------------ ------------ ----------- ----------- --------- ---------
Net increase/(decrease)....... $ 837,000 $ 316,500 $ 333,000 $ 874,000 $ -- $ --
============ ============ =========== =========== ========= =========
Total net increase/(decrease)... $ 2,678,152 $ 2,796,684 $ 1,643,734 $ 1,358,049 $ (59,028) $ 44,864
============ ============ =========== =========== ========= =========
</TABLE>
- ---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) Nations Cash Reserves Market Class commenced operations on May 3, 1996.
(c) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 15. The numbers reflected are for the period May 16, 1998 through March
31, 1999.
(d) Nations Money Market Reserves Liquidity Class, Adviser Class and Market
Class commenced operations on August 7, 1998, July 2, 1998 and October 9,
1998, respectively.
(e) Represents financial information for the period December 1, 1997 to May 15,
1998 for the Emerald Prime Advantage Institutional Fund, which was organized
into Money Market Reserves on May 22, 1998.
(f) Represents financial information for the year ended November 30, 1997 for
the Emerald Prime Advantage Institutional Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 29
NATIONS INSTITUTIONAL RESERVES
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
TREASURY RESERVES GOVERNMENT RESERVES
----------------------------------------- -----------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
MARCH 31, APRIL 30, APRIL 30, MARCH 31, APRIL 30, APRIL 30,
1999(a) 1998 1997(b) 1999(a) 1998 1997(b)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold............................. $ 3,598,873 $1,816,628 $ 1,673,872 $ 1,223,748 $1,207,038 $ 396,993
Issued in exchange for
Institutional Shares of Emerald
Treasury Advantage Fund (Note
9)............................. 144,375 -- -- -- -- --
Issued as reinvestment of
dividends...................... 14,110 4,525 794 6,798 6,640 488
Redeemed......................... (2,620,829) (2,044,082) (1,510,039) (1,191,593) (1,148,448) (330,225)
----------- ----------- ----------- ----------- ----------- ---------
Net increase/(decrease).......... $ 1,136,529 $ (222,929) $ 164,627 $ 38,953 $ 65,230 $ 67,256
=========== =========== =========== =========== =========== =========
LIQUIDITY CLASS SHARES:
Sold............................. $ 2,173,677 $2,905,975 $ 553,984 $ 745,526 $ 655,655 $ 28,431
Issued as reinvestment of
dividends...................... 10,916 10,849 1,522 2,006 1,718 312
Redeemed......................... (2,623,599) (2,254,978) (485,733) (720,754) (631,082) (22,391)
----------- ----------- ----------- ----------- ----------- ---------
Net increase/(decrease).......... $ (439,006) $ 661,846 $ 69,773 $ 26,778 $ 26,291 $ 6,352
=========== =========== =========== =========== =========== =========
ADVISER CLASS SHARES:
Sold............................. $ 2,611,240 $2,542,456 $ 735,221 $ 747,826 $ 392,891 $ 646,627
Issued as reinvestment of
dividends...................... 10,096 9,722 1,848 3,471 1,934 1,239
Redeemed......................... (2,499,169) (2,483,674) (758,512) (732,625) (349,506) (731,190)
----------- ----------- ----------- ----------- ----------- ---------
Net increase/(decrease).......... $ 122,167 $ 68,504 $ (21,443) $ 18,672 $ 45,319 $ (83,324)
=========== =========== =========== =========== =========== =========
MARKET CLASS SHARES:
Sold............................. $ 1,773,805 $ 903,800 $ 333,950 $ 542,300 $ 799,150 $ 691,300
Issued as reinvestment of
dividends...................... -- -- -- -- -- --
Redeemed......................... (869,303) (761,700) (210,550) (482,800) (743,150) (472,800)
----------- ----------- ----------- ----------- ----------- ---------
Net increase/(decrease).......... $ 904,502 $ 142,100 $ 123,400 $ 59,500 $ 56,000 $ 218,500
=========== =========== =========== =========== =========== =========
Total net increase/(decrease)...... $ 1,724,192 $ 649,521 $ 336,357 $ 143,903 $ 192,840 $ 208,784
=========== =========== =========== =========== =========== =========
</TABLE>
- ---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) Nations Treasury Reserves and Government Reserves Market Class Shares
commenced operations on May 3, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 30
NATIONS INSTITUTIONAL RESERVES
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL RESERVES
---------------------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED
MARCH 31, 1999(a) APRIL 30, 1998 April 30, 1997(b)
---------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold...................................................... $ 342,200 $ 344,665 $ 188,377
Issued as reinvestment of dividends....................... 853 195 --
Redeemed.................................................. (283,035) (330,310) (177,158)
--------- ---------- ---------
Net increase/(decrease)................................... $ 60,018 $ 14,550 $ 11,219
========= ========== =========
LIQUIDITY CLASS SHARES:
Sold...................................................... $ 341,064 $ 702,167 $ 456,760
Issued as reinvestment of dividends....................... 1,447 1,606 980
Redeemed.................................................. (327,192) (705,376) (409,797)
--------- ---------- ---------
Net increase/(decrease)................................... $ 15,319 $ (1,603) $ 47,943
========= ========== =========
ADVISER CLASS SHARES:
Sold...................................................... $ 397,229 $ 275,459 $ 60,608
Issued as reinvestment of dividends....................... 1,302 875 196
Redeemed.................................................. (373,032) (253,694) (109,019)
--------- ---------- ---------
Net increase/(decrease)................................... $ 25,499 $ 22,640 $ (48,215)
========= ========== =========
MARKET CLASS SHARES:
Sold...................................................... $ 246,570 $ 326,000 $ 339,700
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (191,570) (312,300) (261,400)
--------- ---------- ---------
Net increase/(decrease)................................... $ 55,000 $ 13,700 $ 78,300
========= ========== =========
Total net increase/(decrease)............................... $ 155,836 $ 49,287 $ 89,247
========= ========== =========
</TABLE>
- ---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) Nations Municipal Reserves Market Class Shares commenced operations on May
3, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 31
[THIS PAGE INTENTIONALLY LEFT BLANK.]
29
<PAGE> 32
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-------------------------------------------------
<S> <C> <C> <C>
CASH RESERVES
CAPITAL CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0484 $(0.0484)
Year ended 4/30/1998........................................ 1.00 0.0554 (0.0554)
Year ended 4/30/1997........................................ 1.00 0.0531 (0.0531)
Year ended 4/30/1996........................................ 1.00 0.0570 (0.0570)
Year ended 4/30/1995........................................ 1.00 0.0480 (0.0480)
Year ended 4/30/1994........................................ 1.00 0.0283 (0.0283)
LIQUIDITY CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0470 $(0.0470)
Year ended 4/30/1998........................................ 1.00 0.0539 (0.0539)
Year ended 4/30/1997........................................ 1.00 0.0516 (0.0516)
Year ended 4/30/1996........................................ 1.00 0.0555 (0.0555)
Year ended 4/30/1995........................................ 1.00 0.0471 (0.0471)
Year ended 4/30/1994........................................ 1.00 0.0273 (0.0273)
ADVISER CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0461 $(0.0461)
Year ended 4/30/1998........................................ 1.00 0.0529 (0.0529)
Year ended 4/30/1997........................................ 1.00 0.0506 (0.0506)
Year ended 4/30/1996........................................ 1.00 0.0545 (0.0545)
Period ended 4/30/1995 *.................................... 1.00 0.0316 (0.0316)
MARKET CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0447 $(0.0447)
Year ended 4/30/1998........................................ 1.00 0.0519 (0.0519)
Period ended 4/30/1997*..................................... 1.00 0.0493 (0.0493)
</TABLE>
- ---------------
* Cash Reserves Adviser Class and Market Class commenced operations on
September 22, 1994 and May 3, 1996, respectively.
** The effect of interest expense on the operating expense ratio was less than
0.01%.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
30
<PAGE> 33
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------
OPERATING
NET ASSETS EXPENSES WITHOUT
NET ASSET VALUE TOTAL END OF PERIOD OPERATING NET INVESTMENT WAIVERS AND/OR
END OF PERIOD RETURN++ (000) EXPENSES INCOME REIMBURSEMENTS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 4.95% $4,379,430 0.20%+(b) 5.24%+ 0.43%++(b)
1.00 5.70 3,051,559 0.20** 5.54 0.44
1.00 5.44 1,684,233 0.20 5.32 0.45
1.00 5.84 607,643 0.20 5.53 0.51
1.00 4.91 134,064 0.29 4.96 0.52
1.00 2.87 109,852 0.45 2.83 0.56
$1.00 4.80% $1,423,382 0.35%+(b) 5.09%+ 1.28%+(b)
1.00 5.53 1,107,869 0.35** 5.39 1.29
1.00 5.28 419,851 0.35 5.17 0.60
1.00 5.70 35,477 0.35 5.38 0.66
1.00 4.81 2 0.38 4.87 0.61
1.00 2.77 69,786 0.55 2.74 0.65
$1.00 4.71% $ 870,170 0.45%+(b) 4.99%+ 0.68%+(b)
1.00 5.43 672,417 0.45** 5.29 0.69
1.00 5.19 247,551 0.45 5.07 0.70
1.00 5.58 397,809 0.45 5.28 0.76
1.00 3.20 47,682 0.54+ 4.71+ 0.77+
$1.00 4.56% $1,486,502 0.61%+(b) 4.83%+ 0.88%+(b)
1.00 5.33 649,503 0.55** 5.19 0.89
1.00 5.04 333,000 0.55+ 4.97+ 0.80+
</TABLE>
31
<PAGE> 34
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET RESERVES
CAPITAL CLASS
Period ended 3/31/1999*(a).................................. $1.00 $0.0438 $(0.0438)
Period ended 5/15/1998 ***.................................. 1.00 0.0252 (0.0252)
Year ended 11/30/1997....................................... 1.00 0.0545 (0.0545)
Year ended 11/30/1996....................................... 1.00 0.0516 (0.0516)
Year ended 11/30/1995....................................... 1.00 0.0561 (0.0561)
Year ended 11/30/1994....................................... 1.00 0.0377 (0.0377)
LIQUIDITY CLASS
Period ended 3/31/1999**(a)................................. $1.00 $0.0281 $(0.0281)
ADVISER CLASS
Period ended 3/31/1999**(a)................................. $1.00 $0.0344 $(0.0344)
MARKET CLASS
Period ended 3/31/1999**(a)................................. $1.00 $0.0214 $(0.0214)
</TABLE>
- ---------------
* The financial information for the fiscal periods through May 15, 1998 reflect
the financial information for the Emerald Prime Advantage Institutional Fund,
which was reorganized into Capital Class shares as of May 22, 1998.
** Money Market Reserve Liquidity Class, Adviser Class and Market Class
commenced operations on August 7, 1998, July 2, 1998 and October 9, 1998,
respectively.
*** For the period from December 1, 1997 through May 15, 1998.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
32
<PAGE> 35
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------
OPERATING
NET ASSETS EXPENSES WITHOUT
NET ASSET VALUE TOTAL END OF PERIOD OPERATING NET INVESTMENT WAIVERS AND/OR
END OF PERIOD RETURN++ (000) EXPENSES INCOME REIMBURSEMENTS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 4.47% $595,482 0.20%+(b) 4.87%+ 0.46%+(b)
1.00 2.55 118,880 0.20+ 5.54+ 0.27+
1.00 5.58 177,908 0.20 5.45 0.28
1.00 5.29 133,044 0.35 5.16 0.35
1.00 5.76 131,089 0.40 5.60 0.46
1.00 3.83 131,758 0.40 3.80 0.44
$1.00 2.87% $ 1,078 0.35%+(b) 4.72%+ 1.31%+(b)
$1.00 3.46% $ 6,377 0.45%+(b) 4.62%+ 0.71%+(b)
$1.00 2.14% $873,993 0.65%+(b) 4.42%+ 0.91%+(b)
</TABLE>
33
<PAGE> 36
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
---------------------------------------------------------
<S> <C> <C> <C>
TREASURY RESERVES
CAPITAL CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0462 $(0.0462)
Year ended 4/30/1998........................................ 1.00 0.0541 (0.0541)
Year ended 4/30/1997........................................ 1.00 0.0519 (0.0519)
Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556)
Year ended 4/30/1995........................................ 1.00 0.0480 (0.0480)
Year ended 4/30/1994........................................ 1.00 0.0298 (0.0298)
LIQUIDITY CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0448 $(0.0448)
Year ended 4/30/1998........................................ 1.00 0.0526 (0.0526)
Year ended 4/30/1997........................................ 1.00 0.0504 (0.0504)
Year ended 4/30/1996........................................ 1.00 0.0541 (0.0541)
Year ended 4/30/1995........................................ 1.00 0.0462 (0.0462)
Year ended 4/30/1994........................................ 1.00 0.0263 (0.0263)
ADVISER CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0439 $(0.0439)
Year ended 4/30/1998........................................ 1.00 0.0516 (0.0516)
Year ended 4/30/1997........................................ 1.00 0.0494 (0.0494)
Year ended 4/30/1996........................................ 1.00 0.0531 (0.0531)
Period ended 4/30/1995 *.................................... 1.00 0.0308 (0.0308)
MARKET CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0423 $(0.0423)
Year ended 4/30/1998........................................ 1.00 0.0505 (0.0505)
Period ended 4/30/1997*..................................... 1.00 0.0481 (0.0481)
</TABLE>
- ---------------
* Treasury Reserves Adviser Class and Market Class commenced operations on
September 22, 1994 and May 3, 1996, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
34
<PAGE> 37
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------
OPERATING
NET ASSETS EXPENSES WITHOUT
NET ASSET VALUE TOTAL END OF PERIOD OPERATING NET INVESTMENT WAIVERS AND/OR
END OF PERIOD RETURN++ (000) EXPENSES INCOME REIMBURSEMENTS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 4.72% $1,382,688 0.20%+(b) 4.99%+ 0.45%+(b)
1.00 5.55 246,058 0.20 5.41 0.45
1.00 5.30 468,975 0.20 5.20 0.46
1.00 5.71 304,342 0.20 5.50 0.51
1.00 4.91 251,694 0.20 4.79 0.50
1.00 3.02 388,504 0.20 2.99 0.52
$1.00 4.58% $ 304,387 0.35%+(b) 4.84%+ 1.35%+(b)
1.00 5.38 743,410 0.35 5.26 1.35
1.00 5.15 81,575 0.35 5.05 0.61
1.00 5.57 11,804 0.35 5.35 0.66
1.00 4.71 674 0.49 4.50 0.79
1.00 2.67 14,227 0.55 2.67 0.87
$1.00 4.48% $ 344,906 0.45%+(b) 4.74%+ 0.70%+(b)
1.00 5.28 222,760 0.45 5.16 0.70
1.00 5.06 154,256 0.45 4.95 0.71
1.00 5.45 175,691 0.45 5.25 0.76
1.00 3.11 55,762 0.45+ 4.54+ 0.75+
$1.00 4.31% $1,169,932 0.62%+(b) 4.57%+ 0.90%+(b)
1.00 5.18 265,495 0.55 5.06 0.90
1.00 4.92 123,396 0.55+ 4.85+ 0.81+
</TABLE>
35
<PAGE> 38
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
---------------------------------------------------
<S> <C> <C> <C>
GOVERNMENT RESERVES
CAPITAL CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0468 $(0.0468)
Year ended 4/30/1998........................................ 1.00 0.0543 (0.0543)
Year ended 4/30/1997........................................ 1.00 0.0520 (0.0520)
Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556)
Year ended 4/30/1995........................................ 1.00 0.0463 (0.0463)
Year ended 4/30/1994........................................ 1.00 0.0278 (0.0278)
LIQUIDITY CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0454 $(0.0454)
Year ended 4/30/1998........................................ 1.00 0.0528 (0.0528)
Year ended 4/30/1997........................................ 1.00 0.0505 (0.0505)
Year ended 4/30/1996........................................ 1.00 0.0537 (0.0537)
Year ended 4/30/1995........................................ 1.00 0.0453 (0.0453)
Year ended 4/30/1994........................................ 1.00 0.0268 (0.0268)
ADVISER CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0445 $(0.0445)
Year ended 4/30/1998........................................ 1.00 0.0518 (0.0518)
Year ended 4/30/1997........................................ 1.00 0.0495 (0.0495)
Year ended 4/30/1996........................................ 1.00 0.0527 (0.0527)
Period ended 4/30/1995*..................................... 1.00 0.0299 (0.0299)
MARKET CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0431 $(0.0431)
Year ended 4/30/1998........................................ 1.00 0.0508 (0.0508)
Period ended 4/30/1997*..................................... 1.00 0.0482 (0.0482)
</TABLE>
- ---------------
* Government Reserves Adviser Class and Market Class commenced operations on
September 22, 1994 and May 3, 1996, respectively.
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
(b) The effect of the fees reduced by credits allowed by the custodian on the
operating expense ratio, with and without waivers and/or expense
reimbursements, was less than 0.01%.
36
<PAGE> 39
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------
OPERATING
NET ASSETS EXPENSES WITHOUT
NET ASSET VALUE TOTAL END OF PERIOD OPERATING NET INVESTMENT WAIVERS AND/OR
END OF PERIOD RETURN++ (000) EXPENSES INCOME REIMBURSEMENTS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 4.78% $229,561 0.20%+(b) 5.05%+ 0.44%+(b)
1.00 5.57 190,607 0.20 5.43 0.45
1.00 5.33 125,377 0.20(b) 5.22 0.49(b)
1.00 5.71 58,121 0.20 5.48 0.53
1.00 4.72 2 0.32 4.35 0.54
1.00 2.82 10,819 0.45 2.78 0.51
$1.00 4.63% $ 59,551 0.35%+(b) 4.90%+ 1.29%+(b)
1.00 5.40 32,773 0.35 5.28 1.30
1.00 5.19 6,482 0.35(b) 5.07 0.64(b)
1.00 5.51 129 0.35 5.33 0.68
1.00 4.59 2 0.40 4.27 0.62
1.00 2.71 259,836 0.55 2.68 0.61
$1.00 4.54% $ 88,836 0.45%+(b) 4.80%+ 0.69%+(b)
1.00 5.30 70,164 0.45 5.18 0.70
1.00 5.07 24,845 0.45(b) 4.97 0.74(b)
1.00 5.39 108,168 0.45 5.23 0.78
1.00 3.04 99,246 0.57+ 4.10+ 0.79+
$1.00 4.39% $334,000 0.61%+(b) 4.64%+ 0.89%+(b)
1.00 5.20 274,499 0.55 5.08 0.90
1.00 4.93 218,499 0.55+(b) 4.87+ 0.84+(b)
</TABLE>
37
<PAGE> 40
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME INCOME
-----------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL RESERVES
CAPITAL CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0292 $(0.0292)
Year ended 4/30/1998........................................ 1.00 0.0353 (0.0353)
Year ended 4/30/1997........................................ 1.00 0.0337 (0.0337)
Year ended 4/30/1996........................................ 1.00 0.0362 (0.0362)
Year ended 4/30/1995........................................ 1.00 0.0313 (0.0313)
Year ended 4/30/1994........................................ 1.00 0.0198 (0.0198)
LIQUIDITY CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0278 $(0.0278)
Year ended 4/30/1998........................................ 1.00 0.0341 (0.0341)
Year ended 4/30/1997........................................ 1.00 0.0323 (0.0323)
Year ended 4/30/1996........................................ 1.00 0.0347 (0.0347)
Year ended 4/30/1995........................................ 1.00 0.0304 (0.0304)
Year ended 4/30/1994........................................ 1.00 0.0188 (0.0188)
ADVISER CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0270 $(0.0270)
Year ended 4/30/1998........................................ 1.00 0.0332 (0.0332)
Year ended 4/30/1997........................................ 1.00 0.0313 (0.0313)
Year ended 4/30/1996........................................ 1.00 0.0337 (0.0337)
Period ended 4/30/1995*..................................... 1.00 0.0199 (0.0199)
MARKET CLASS
Period ended 3/31/1999(a)................................... $1.00 $0.0254 $(0.0254)
Year ended 4/30/1998........................................ 1.00 0.0318 (0.0318)
Period ended 4/30/1997*..................................... 1.00 0.0301 (0.0301)
</TABLE>
- ---------------
* Municipal Reserves Adviser Class and Market Class commenced operations on
September 22, 1994 and May 3, 1996, respectively.
** The effect of interest expense on the operating expense ratio was 0.02%
+ Annualized.
++ Total return represents aggregate total return for the period indicated,
assumes reinvestment of all distributions, and does not reflect the
deduction of any applicable sales charges.
(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
38
<PAGE> 41
NATIONS INSTITUTIONAL RESERVES
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
------------------------------------------------
OPERATING
NET ASSETS EXPENSES WITHOUT
NET ASSET VALUE TOTAL END OF PERIOD OPERATING NET INVESTMENT WAIVERS AND/OR
END OF PERIOD RETURN++ (000) EXPENSES INCOME REIMBURSEMENTS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 2.96% $134,268 0.20%+ 3.10%+ 0.48%+
1.00 3.61 74,251 0.20** 3.53 0.48
1.00 3.44 59,701 0.20 3.38 0.52
1.00 3.70 48,482 0.20 3.61 0.58
1.00 3.19 32,353 0.23 3.36 0.59
1.00 2.00 35,698 0.45 1.98 0.58
$1.00 2.81% $ 68,393 0.35%+ 2.95%+ 1.33%+
1.00 3.43 53,074 0.35** 3.38 1.33
1.00 3.29 54,677 0.35 3.23 0.67
1.00 3.52 6,734 0.35 3.46 0.73
1.00 3.09 2,591 0.33 3.26 0.69
1.00 1.90 13,805 0.55 1.86 0.67
$1.00 2.73% $ 55,434 0.45%+ 2.85%+ 0.73%+
1.00 3.34 29,936 0.45** 3.28 0.73
1.00 3.19 7,296 0.45 3.13 0.77
1.00 3.43 55,511 0.45 3.36 0.83
1.00 2.02 64,123 0.48+ 3.11+ 0.84+
$1.00 2.57% $146,999 0.61%+ 2.69%+ 0.93%+
1.00 3.24 92,000 0.55** 3.18 0.93
1.00 3.06 78,300 0.55+ 3.03+ 0.87+
</TABLE>
39
<PAGE> 42
NATIONS INSTITUTIONAL RESERVES
NOTES TO FINANCIAL STATEMENTS
Nations Institutional Reserves (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end investment
company. In 1999, the Trust's fiscal year end changed to March 31. Prior to
this, the fiscal year end was April 30. At March 31, 1999, the Trust offered
five portfolios: Nations Cash Reserves, Nations Money Market Reserves, Nations
Treasury Reserves, Nations Government Reserves and Nations Municipal Reserves
(individually, a "Portfolio", and collectively, the "Portfolios"). At March 31,
1999, the Portfolios offered four classes of shares: Capital Class Shares,
Liquidity Class Shares, Adviser Class Shares and Market Class Shares.
Shareholders of a Portfolio have equal voting rights on matters affecting all
shareholders of the Portfolio. In addition, each class of shares of a Portfolio
has exclusive voting rights on matters that relate solely to its class and
separate voting rights on matters in which the interests of one class differ
from the interests of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies followed by the 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 advisor 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 date, 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 Portfolios' investment advisor and sub-advisor, acting
under the supervision of the Board of Trustees, monitor the value of 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 advisor and sub-advisor have
determined are creditworthy. Under the terms of a typical reverse repurchase
agreement, the Portfolio sells securities and agrees to repurchase them at a
mutually agreed upon date and price. At the time the Portfolio enters into a
reverse repurchase agreement, it 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 Portfolio is obligated to
repurchase. Securities subject to repurchase under reverse repurchase agreements
are designated in the Statement of Net Assets.
At March 31, 1999, Treasury Reserves had reverse repurchase agreements
outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount................................ $443,677,000
Maturity Date.................................. 04/01/99
Market Value of Assets Sold Under Agreements... $436,191,000
</TABLE>
40
<PAGE> 43
NATIONS INSTITUTIONAL RESERVES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The average daily balance of reverse repurchase agreements outstanding by
Treasury Reserves during the year ended March 31, 1999 was $331,792,872. Cash
Reserves and Government Reserves did not enter into any reverse repurchase
agreements during the year ended March 31, 1999.
The proceeds received by Treasury Reserves under the reverse repurchase
agreements were reinvested in a tri-party repurchase agreement. Net fees earned
during the year ended March 31, 1999, representing the difference between
interest rates on the reverse repurchase and repurchase agreements, amounted to
$398,151 and have been included in interest income in the Statement of
Operations.
Securities Transactions and Investment Income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums calculated ratably, is
earned from settlement date and recorded on an accrual basis. Dividend income is
recorded on ex-dividend date. Each 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 from net investment income daily 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.
Certain reclassifications are made to each Portfolio's capital accounts to
reflect income and gains available for distribution (or available capital loss
carryforwards) under Federal income tax regulations. These reclassifications are
due to different book and tax accounting for capital loss carryforwards from
mergers.
Reclassifications for the year ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
INCREASE/
(DECREASE) INCREASE/
INCREASE/ UNDISTRIBUTED (DECREASE)
(DECREASE) NET ACCUMULATED
PAID-IN INVESTMENT NET REALIZED
CAPITAL INCOME GAIN/(LOSS)
(000) (000) (000)
-----------------------------------------
<S> <C> <C> <C>
Cash Reserves.............. $-- $27 $(27)
Money Market Reserves...... -- -- --
Treasury Reserves.......... 94 -- (94)
Government Reserves........ (1) -- 1
Municipal Reserves......... --* -- --*
</TABLE>
- ---------------
* Amount represents less than $500.
Federal Income Tax: Each Portfolio intends to continue to qualify as a
regulated investment company by complying with the applicable requirements of
the Internal Revenue Code of 1986, as amended, and by distributing substantially
all of its earnings to its shareholders. Therefore, no provision is made for
Federal income or excise taxes.
Expenses: General expenses of the Trust are allocated to the Portfolios based
upon their relative net assets or other expense allocation methodologies
determined by the nature of the expense. Expenses directly attributable to a
Portfolio or class of shares are charged to such Portfolio or class. Expenses
not directly attributable to any class of shares are prorated based on the
relative net assets of each class.
Cash Flow Information: Cash, as used in the Statement of Cash Flows, is the
amount reported in the Statements of Net Assets and represents cash on hand at
custodian banks. The Trust issues and redeems shares, invests in securities, and
distributes dividends from net investment income and net capital gains (which
are either paid in cash or reinvested at the discretion of shareholders). These
activities are reported in the Statements of Changes in Net Assets. Information
on cash payments is presented in the Statement of Cash Flows.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
The Trust has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with NationsBanc Advisors, Inc. ("NBAI"), a wholly-owned
subsidiary of NationsBank, N.A. ("NationsBank"), which in turn is an indirect
wholly-owned banking subsidiary of Bank of America Corporation, a bank holding
company organized as a Delaware corporation, pursuant to which NBAI
41
<PAGE> 44
NATIONS INSTITUTIONAL RESERVES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
provides investment advisory services to the Portfolios. Under the Investment
Advisory Agreement, NBAI is entitled to receive an advisory fee, calculated
daily and payable monthly, at the annual rate of 0.30% of each Portfolio's
average daily net assets.
The Trust has 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 fee from
NBAI at the annual rate of 0.033% of each Portfolio's average daily net assets.
Stephens Inc. ("Stephens") serves as the co-administrator of the Trust. On
December 1, 1998, NBAI began serving as co-administrator of the Portfolios with
Stephens. Under the new arrangement, Stephens and NBAI are entitled to receive a
combined fee, computed daily and paid monthly, at the annual rate of 0.10% of
each Portfolio's average daily net assets, in addition to certain out-of-pocket
expenses. Prior to December 1, 1998, First Data Investor Services Group, Inc.
("First Data"), a wholly-owned subsidiary of First Data Corporation, served as
co-administrator. Stephens and First Data were entitled to receive a combined
fee, computed daily and paid monthly, at the annual rate of 0.10% of each
Portfolio's average daily net assets. Effective December 1, 1998, The Bank of
New York ("BNY") began serving as sub-administrator of the Trust pursuant to an
agreement with NBAI, and NBAI ceased to serve as sub-administrator. For the year
ended March 31, 1999, Stephens earned $933,393 from the Portfolios for its
administration services and NBAI waived all of its fees from the Portfolios for
administration services.
The investment advisor, sub-advisor and distributor may, from time to time,
voluntarily reduce their fees payable by each Portfolio. For the year ended
March 31, 1999, the investment advisor agreed to voluntarily reimburse expenses
and/or waive its advisory and co-administration fees to the extent that total
expenses (excluding shareholder servicing and distribution fees) exceed 0.20% of
each Portfolio's average daily net assets.
Effective October 19, 1998, BNY began serving as the custodian of the Trust's
assets. Previously, NationsBank of Texas, N.A. ("NationsBank of Texas") served
as custodian until May 6, 1998, when it was merged with NationsBank. BNY acted
as sub-custodian to the Funds until that date. For the year ended March 31,
1999, NationsBank of Texas and NationsBank earned $14,082 for providing such
services. For the year ended March 31, 1999, expenses of the Cash Reserves,
Money Market Reserves, Treasury Reserves and Government Reserves were reduced by
$12,663 under expense offset arrangements with BNY. The Funds could have
invested a portion of the assets utilized in connection with the expense offset
arrangements in an income producing asset if they had not entered into such
arrangements. The Municipal Reserves does not participate in the expense offset
arrangement.
First Data serves as the transfer agent for the Portfolios' shares. NationsBank
of Texas also served as the sub-transfer agent for the Capital Class Shares of
the Portfolios until it merged with NationsBank on May 6, 1998. NationsBank
began serving as the 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. Stephens serves 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 non-qualified deferred
compensation and retirement plans which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Portfolios' assets. Income earned on
each plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of the Nations Treasury Fund, a portfolio of Nations
Funds, Inc. The expense for the deferred compensation and retirement plans is
included in "Trustees' fees and expenses" in the Statements of Operations.
Certain other affiliated Nations Funds, advised by NBAI, have made daily
investments of cash balances in the Cash Reserves, pursuant to an exemptive
order received from the Securities and Exchange Commission. At March 31, 1999,
approximately
42
<PAGE> 45
NATIONS INSTITUTIONAL RESERVES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
11.8% of the net assets of the 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 the Cash Reserves, Money Market Reserves, Government Reserves
and Municipal Reserves and 0.35% of the average daily net assets of the
Liquidity Class Shares of the Treasury Reserves. Stephens may use this fee to
compensate certain financial institutions, with which it has entered into
servicing agreements, that provide administrative and/or distribution services
to Liquidity Class Shares shareholders. Currently, the Trust is not compensating
Stephens for providing such services.
The Trust also has adopted shareholder servicing plans ("Servicing Plans") for
the Liquidity, Adviser 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 the classes'
shares. Payments under the Servicing Plans will not exceed 0.25%, on an
annualized basis, of the average daily net assets of the classes' shares and are
charged as expenses of each Portfolio directly to the applicable class.
At March 31, 1999, the rates in effect, as a percentage of average daily net
assets, were as follows:
<TABLE>
<CAPTION>
SERVICING PLAN
---------------------------- MARKET
LIQUIDITY ADVISER MARKET CLASS
CLASS CLASS CLASS SHARES
PORTFOLIO SHARES SHARES SHARES PLAN
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Reserves................ 0.15% 0.25% 0.25% 0.20%*
Money Market Reserves........ 0.15% 0.25% 0.25% 0.20%*
Treasury Reserves............ 0.15% 0.25% 0.25% 0.20%*
Government Reserves.......... 0.15% 0.25% 0.25% 0.20%*
Municipal Reserves........... 0.15% 0.25% 0.25% 0.20%*
</TABLE>
- ---------------
* Reflects an increase from 0.10%, effective October 1, 1998.
A substantial portion of the expenses incurred pursuant to these plans is paid
to affiliates of NationsBank and NBAI.
4. SHARES OF BENEFICIAL INTEREST
At March 31, 1999, an unlimited number of shares of beneficial interest without
par value was authorized for the Trust. The Trust's Declaration of Trust
authorizes the Board of Trustees to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedule of Capital Stock Activity.
5. RESTRICTED SECURITIES
Certain securities may be subject to legal restrictions and may be difficult to
sell. In addition, no Portfolio will invest more than 10% of the value of its
net assets in securities that are illiquid.
The following securities are considered both illiquid and restricted as to
resale. Accordingly, they are valued at fair value in good faith by the
investment advisor under the direction of the Board of Trustees, taking into
consideration such factors as the Board deems appropriate.
43
<PAGE> 46
NATIONS INSTITUTIONAL RESERVES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
CASH RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 3/31/99 PER UNIT 3/31/99 ASSETS 3/31/99
SECURITY DATE (000) 3/31/99 (000) 3/31/99 (000)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commonwealth Life Insurance Company: 5.060%
04/01/99+....................................... 3/05/99 $75,000 $1.00 $ 75,000 0.9% $ 75,000
First Allmerica Financial Life Insurance Company:
5.060% 06/29/99#................................ 2/25/99 50,000 1.00 50,000 0.6 50,000
5.090% 06/29/99#................................ 5/15/98 50,000 1.00 50,000 0.6 50,000
5.120% 06/29/99#................................ 3/22/99 50,000 1.00 50,000 0.6 50,000
Jackson National Life Insurance Company:
5.180% 04/01/99+................................ 3/01/99 50,000 1.00 50,000 0.6 50,000
5.090% 09/27/99#................................ 3/14/99 50,000 1.00 50,000 0.6 50,000
Peoples Security Life Insurance Company:
5.010% 09/27/99#................................ 5/09/98 25,000 1.00 25,000 0.3 25,000
SMM Trust, Series 1999-B:
5.449% 03/15/00................................. 3/05/99 100,000 1.00 100,000 1.2 100,000
Travelers Life Insurance Company:
5.040% 06/01/99+................................ 1/31/99 50,000 1.00 50,000 0.6 50,000
</TABLE>
- ---------------
# Put date
+ Reset date
TREASURY RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 3/31/99 PER UNIT 3/31/99 ASSETS 3/31/99
SECURITY DATE (000) 3/31/99 (000) 3/31/99 (000)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Repurchase Agreement with Morgan Stanley Group
Inc., 4.810% 04/30/99........................... 11/3/98 $90,000 $1.00 $90,000 2.8% $90,000
</TABLE>
The following security is restricted as to resale. However, it is considered
liquid due to the put feature which allows the Portfolio to put the security
back to the issuer at par value within seven calendar days.
CASH RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 3/31/99 PER UNIT 3/31/99 ASSETS 3/31/99
SECURITY DATE (000) 3/31/99 (000) 3/31/99 (000)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New York Life Insurance Company:
5.106% 04/07/99#................................ 11/10/98 $100,000 $1.00 $100,000 1.2% $100,000
</TABLE>
- ---------------
# Put date
6. LINE OF CREDIT
The Trust participates in an uncommitted line of credit provided by BNY under a
line of credit agreement (the "Agreement"). Advances under the Agreement are
taken primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Interest on borrowings is payable at the Federal Funds Rate plus
0.50% on an annualized basis. Each participating Portfolio maintains 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.
For the year ended March 31, 1999, there were no borrowings by the Portfolios
under the Agreement.
44
<PAGE> 47
NATIONS INSTITUTIONAL RESERVES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. CAPITAL LOSS CARRYFORWARD
At March 31, 1999, the Portfolios had available for Federal income tax purposes
the following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2001 2002 2003 2004 2005 2006 2007
(000) (000) (000) (000) (000) (000) (000)
-----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash Reserves............. -- -- -- -- -- -- $17
Money Market Reserves..... $ 13 -- -- -- -- -- --
Treasury Reserves......... -- $9 $3 $39 $45 $26 2
Municipal Reserves........ -- -- 1 -- -- -- 1
</TABLE>
- ---------------
* Represents less than $500.
8. REORGANIZATIONS
On May 15, 1998, Treasury Reserves (the "Acquiring Fund"), acquired the assets
and certain liabilities of the Emerald Treasury Advantage Institutional Fund
(the "Acquired Fund"), in a tax-free reorganization in exchange for shares of
the Acquiring Fund, pursuant to a plan of reorganization approved by the
Acquired Fund's shareholders. The value of shares issued by the Acquiring Fund
is presented in the Schedule of Capital Stock Activity. Net assets as of the
reorganization date of the Acquired Fund and Acquiring Fund prior to
acquisition, and the Acquiring Fund immediately after acquisition, were
$144,375,000, $1,630,778,000 and $1,775,153,000, respectively.
On May 22, 1998, Money Market Reserves, a newly established Portfolio, acquired
the assets and certain liabilities of the Emerald Prime Advantage Institutional
Fund pursuant to a plan of reorganization approved by its shareholders. The
acquisition was accomplished by a tax-free exchange of shares of Money Market
Reserves in an amount equal to the value of the outstanding shares of the
Emerald Prime Advantage Institutional Fund. The financial statements of Money
Market Reserves reflect the historical financial results of the Emerald Prime
Advantage Institutional Fund prior to the reorganization. Additionally, the
fiscal year end of the Emerald Prime Advantage Institutional Fund for financial
reporting purposes was changed to coincide with that of the Trust.
9. SUBSEQUENT EVENT
The Trust was party to an Agreement and Plan of Reorganization with the Pacific
Horizon Funds, Inc. (a family of mutual funds advised by Bank of America NT&SA,
an indirect wholly-owned subsidiary of Bank of America Corporation) pursuant to
which the assets and liabilities (net) of the Pacific Horizon Government and
Treasury Only Funds, Prime Fund, Tax-Exempt Money Fund and Treasury Fund of
$471,810,236, $13,963,106,746, $754,047,900 and $3,144,070,928, respectively,
were acquired in a tax-free reorganization in exchange for shares of the Nations
Government Reserves, Cash Reserves, Municipal Reserves and Treasury Reserves on
May 14, 1999.
Effective May 14, 1999, the maximum contractual levels of advisory fees payable
by the Portfolios changed. At that time, the maximum contractual advisory fee
that NBAI was entitled to receive from the Portfolios decreased from 0.30% of
the Portfolios' average daily net assets to 0.15% of the Portfolios' average
daily net assets.
45
<PAGE> 48
NATIONS INSTITUTIONAL RESERVES
REPORT OF INDEPENDENT ACCOUNTANTS
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 the Nations Cash Reserves, Nations
Treasury Reserves, Nations Government Reserves, Nations Municipal Reserves, and
Nations Money Market Reserves (each a series of Nations Institutional Reserves,
hereafter referred to as the "Trust") at March 31, 1999, 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 on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 1999 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above. The Statement of Operations of Nations Money Market
Reserves for the period December 1, 1997 through May 15, 1998, the statements of
changes in net assets for the period December 1, 1997 through May 15, 1998 and
the year ended November 30, 1997, and the financial highlights for the periods
indicated were audited by other independent accountants whose report dated July
1, 1998 expressed an unqualified opinion on those statements.
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 28, 1999
46
<PAGE> 49
NATIONS INSTITUTIONAL RESERVES
TAX INFORMATION (UNAUDITED)
For the period ended March 31, 1999, 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 Federal
Alternative Minimum Tax.
47
<PAGE> 50
--------------
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