<PAGE> 1
NATIONS RESERVES
MONEY MARKET FUNDS
Semiannual report
for the period ended
September 30, 1999
Nations Cash Reserves
Nations Money Market Reserves
Nations Treasury Reserves
Nations Government Reserves
Nations Municipal Reserves
Nations California Tax Exempt Reserves
[GRAPHIC: PHOTO COLLAGE]
Nations Funds
<PAGE> 2
This Report is submitted for the general information of shareholders of Nations
Funds. This material must be preceded or accompanied by a current Nations Funds
prospectus.
Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of
America N.A., is not a bank, and securities offered by it are not guaranteed by
any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC.
Nations Funds investment adviser: Banc of America Advisors, Inc.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 3
NATIONS RESERVES MONEY MARKET FUNDS
DEAR SHAREHOLDER:
We are pleased to present the semiannual financial report for Nations Reserves
money market portfolios. This report contains important financial data regarding
your investment for the period ended September 30, 1999. We hope you will take a
moment to review this information.
RECAPPING THE END OF AN ERA
In the second and third quarters of 1999, the Federal Open Market Committee
(FOMC) met three times. At each meeting, a review of economic indicators
suggested continued growth in the economy (described as "vigorous expansion"
early in the second quarter, slowing to "solid expansion" late in the third
quarter). Despite subdued inflation, in view of the robust economy, the FOMC
moved twice to raise the Federal Funds rate, both times by 25 basis points, or
0.25%. These increases brought the average Federal Funds rate to about
5.25% -- a level designed to help meet the Federal Reserve Board's long-term
objectives of price stability and sustained economic growth.
During this period, the Funds were able to take advantage of a steepening yield
curve by purchasing longer duration securities. Primary catalysts for the
positive short-term yield curve were:
- - The anticipation of Federal Funds rate movements
- - Attempts by short-term issuers to avoid potential year-end liquidity
constraints by seeking additional funding in the marketplace
MOVING INTO THE NEW MILLENNIUM
The economic outlook for the duration of 1999 and the year 2000 is optimistic.
The labor market is expected to remain tight, with the average annual
unemployment rate anticipated to be 4.2% for 1999 and 4.4% for 2000. Estimates
of real gross domestic product (GDP) suggest an average annual GDP growth rate
of 3.8% for 1999 and 2.7% for 2000. Housing starts and auto sales are to remain
solid throughout 2000, although growth in these sectors will likely be somewhat
slower than in 1999. In summary, predictions of a stable growth environment for
the economy continue to prevail as we move into the new millennium.
Based on projected market conditions into the new year, our portfolio management
teams will continue to seek value in fixed-rate securities. They may also
purchase floating rate notes as a hedge against future FOMC interventions.
SERVING YOUR SHORT-TERM INVESTMENT NEEDS
We are committed to providing competitive products and services for your
short-term investing and cash management needs. Nations Reserves money market
funds are managed daily, giving you access to major sectors of the money markets
while striving to keep pace with changing economic conditions. Dedicated
marketing efforts consistently focus on new ways to make doing business with us
easier. Our sales teams, intermediaries and client service centers are available
to assist you with day-to-day investment information.
We appreciate your business and thank you for choosing Nations Reserves to help
you with your short-term investment needs.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman of the Board
/s/ Robert H. Gordon
Robert H. Gordon
President, Banc of America Advisors, Inc.
September 30, 1999
AN INVESTMENT IN MONEY MARKET FUNDS IS 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.
Sources for economic and statistical data: TradeStreet Investment Associates,
Inc.; FOMC 1999 meeting minutes of 5/18/99, 6/30/99 and 8/24/99.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
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TABLE
OF
CONTENTS
<TABLE>
<S> <C>
FINANCIAL STATEMENTS
Statements of net assets
- Nations Cash Reserves 2
- Nations Money Market Reserves 7
- Nations Treasury Reserves 10
- Nations Government Reserves 13
- Nations Municipal Reserves 15
- Nations California Tax-Exempt Reserves 28
Statements of operations 36
Statements of changes in net assets 38
Statement of cash flows 42
Schedules of capital stock activity 43
Financial highlights 50
Notes to financial statements 62
</TABLE>
<TABLE>
<S> <C>
---------------------------------------------------------------------------------
NATIONS FUNDS [Dalbar Logo]
RECOGNIZED FOR [DALBAR Honors Commitment To: Investors 1998]
OUTSTANDING DALBAR, Inc., is a well-respected research firm
CUSTOMER SERVICE that measures customer service levels and
establishes benchmarks in the financial services
In recognition of our industry.
commitment to retail
shareholders through
consistently providing
superior customer service,
Nations Funds was awarded
DALBAR Key Honors in 1997
and 1998.
---------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 28.3%
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 7.0%
$ 100,000 American Express Centurion Bank
5.460%+ 10/01/99++............... $ 100,000
260,000 Chase Manhattan Bank USA, N.A.
5.288%+ 10/25/99++............... 259,891
First Union National Bank
80,000 5.450%+ 10/01/99++................. 80,000
100,000 5.480%+ 10/01/99++................. 100,000
100,000 5.540%+ 10/01/99++................. 100,000
110,000 5.560%+ 10/01/99++................. 110,000
150,000 5.640%+ 10/01/99++................. 150,000
250,000 5.563%+ 11/17/99++................. 250,000
60,000 5.300% 03/01/00.................... 60,000
200,000 5.460%+ 06/23/00++................. 200,000
53,000 Key Bank, N.A.
5.650% 06/26/00.................. 52,974
National City Bank of Cleveland
200,000 5.706%+ 10/05/99++................. 199,903
100,000 5.400%+ 10/29/99++................. 99,922
150,000 Northern Rock plc
5.503%+ 12/14/99++##............. 150,000
50,000 PNC Bank, N.A.
5.380%+ 10/13/99++............... 50,000
-----------
1,962,690
-----------
CERTIFICATES OF DEPOSIT -- YANKEE -- 5.8%
50,000 Australia and New Zealand Bank
Group Ltd., (New York)
5.040% 01/14/00.................. 50,000
100,000 Bank Austria AG, (New York)
5.075% 12/31/99.................. 99,994
Bank of Nova Scotia, (New York)
50,000 5.160% 02/25/00.................... 49,992
35,000 5.330% 03/03/00.................... 34,994
Bayerische
Hypotheken-und-Vereinsbank, (New
York)
25,000 5.010% 02/07/00.................... 24,996
50,000 5.075% 02/09/00.................... 49,994
100,000 5.075% 02/10/00.................... 99,986
50,000 5.130% 02/23/00.................... 49,993
50,000 5.150% 03/20/00.................... 49,989
Bayerische Landesbank Girozentrale,
(New York)
50,000 4.980% 11/17/99.................... 49,997
100,000 4.930% 11/18/99.................... 99,993
Commerzbank AG, (New York)
50,000 5.065% 02/08/00.................... 49,996
50,000 5.085% 02/17/00.................... 49,994
25,000 5.310% 03/01/00.................... 24,997
75,000 5.770% 07/03/00.................... 74,978
Deutsche Bank AG, (New York)
43,000 4.980% 01/07/00.................... 42,992
50,000 5.120% 01/10/00.................... 50,000
50,000 5.100% 02/18/00.................... 49,994
National Bank of Canada, (New York)
50,000 5.150% 04/26/00.................... 49,986
100,000 5.570% 06/05/00.................... 99,987
40,000 5.730% 06/28/00.................... 39,994
75,000 6.035% 09/25/00.................... 74,979
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT -- (CONTINUED)
$ 50,000 Rabobank Nederland, (New York)
5.000% 01/04/00.................. $ 49,996
100,000 Societe Generale, (New York)
5.305%+ 10/14/99++............... 99,975
United Bank of Switzerland, (New
York)
50,000 5.075% 01/13/00.................... 49,997
50,000 5.080% 01/13/00.................... 49,996
50,000 5.050% 02/09/00.................... 49,995
50,000 5.510% 06/05/00.................... 49,987
-----------
1,617,771
-----------
TIME DEPOSITS -- EURO -- 15.5%
690,000 Canadian Imperial Bank of Commerce
5.625% 10/01/99.................. 690,000
50,000 Commerzbank
5.270% 03/01/00.................. 49,998
725,000 Deutsche Bank
5.688% 10/01/99.................. 725,000
1,030,000 First National Bank of Chicago
5.680% 10/01/99.................. 1,030,000
Societe Generale
650,000 5.594% 10/01/99.................... 650,000
190,000 5.750% 10/01/99.................... 190,000
993,182 Westdeutsche Landebank,
Girozentrale
5.750% 10/01/99.................. 993,182
-----------
4,328,180
-----------
TOTAL BANK OBLIGATIONS
(Cost $7,908,641).................. 7,908,641
-----------
CORPORATE OBLIGATIONS -- 65.2%
COMMERCIAL PAPER -- 44.8%
Aon Corporation
34,276 Discount note 10/12/99............. 34,220
46,625 Discount note 10/14/99............. 46,535
46,882 Discount note 10/25/99............. 46,713
72,946 Discount note 10/27/99............. 72,662
270,000 Associates Corporation of North
America
Discount note 10/01/99............. 270,000
90,000 Bankers Trust Corporation
Discount note 10/20/99............. 89,766
Barton Capital Corporation
464,310 Discount note 10/01/99#............ 464,309
111,535 Discount note 10/20/99#............ 111,220
46,367 Discount note 02/16/00#............ 45,338
37,071 Discount note 03/06/00#............ 36,133
43,645 Discount note 03/10/00#............ 42,513
Bavaria TRR Corporation
50,000 Discount note 10/15/99#............ 49,899
205,200 Discount note 02/25/00#............ 200,332
200,000 Bear, Stearns and Company, Inc.
Discount note 04/19/00............. 193,791
50,000 Beta Finance, Inc.
Discount note 03/27/00#............ 48,566
100,000 CC (USA) Inc.
Discount note 03/08/00#............ 97,438
Citibank Capital Markets Assets LLC
172,600 Discount note 10/01/99#............ 172,600
100,000 Discount note 02/09/00#............ 97,893
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 7
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
Corporate Receivables Corporation
$ 266,500 Discount note 10/01/99#............ $ 266,500
85,000 Discount note 10/28/99#............ 84,659
200,000 Discount note 02/22/00#............ 195,360
Eaton Corporation
50,000 Discount note 10/19/99#............ 49,870
100,000 Discount note 02/01/00#............ 98,035
Edison Securitization LLC
125,000 Discount note 02/23/00#............ 122,060
57,461 Discount note 02/29/00#............ 56,056
Falcon Asset Securitization
Corporation
70,000 Discount note 10/21/99#............ 69,793
145,000 Discount note 03/23/00#............ 140,935
100,000 Finova Capital Corporation
Discount note 03/06/00............. 97,453
General Electric Capital
Corporation
800,000 Discount note 10/01/99............. 799,999
60,000 Discount note 10/04/99............. 59,976
100,000 General Motors Corporation
Discount note 10/01/99............. 100,000
267,000 Greyhawk Funding LLC
Discount note 10/01/99#............ 267,000
275,000 Household Finance Corporation
Discount note 10/01/99............. 275,000
International Securitization
Corporation
51,546 Discount note 10/25/99#............ 51,359
173,780 Discount note 10/26/99#............ 173,122
243,495 Discount note 10/27/99#............ 242,549
47,755 Discount note 10/28/99#............ 47,561
47,610 Discount note 10/29/99#............ 47,409
380,000 Johnson Controls, Inc.
Discount note 10/01/99#............ 379,999
Lehman Brothers Holdings Inc.
100,000 Discount note 10/20/99............. 99,733
100,000 Discount note 01/31/00............. 98,102
150,000 Discount note 02/16/00............. 146,608
100,000 Discount note 02/22/00............. 97,632
25,000 Liberty Lighthouse Funding Company
LLC
5.450%+ 10/01/99++##............. 25,000
25,600 Links Finance LLC
Discount note 03/15/00#............ 24,907
Mitsubishi International
Corporation
30,000 Discount note 10/01/99............. 30,000
35,000 Discount note 10/06/99............. 34,974
75,000 Discount note 01/18/00............. 73,728
50,000 Discount note 01/25/00............. 49,074
50,000 Discount note 01/28/00............. 49,050
50,000 Discount note 03/07/00............. 48,705
50,000 Discount note 03/08/00............. 48,695
25,000 Discount note 03/13/00............. 24,327
MOAT Funding LLC
101,366 Discount note 10/07/99#............ 101,278
131,488 Discount note 10/13/99#............ 131,262
75,000 Discount note 10/13/99#............ 74,865
134,787 Discount note 10/14/99#............ 134,531
48,376 Discount note 10/18/99#............ 48,257
176,317 Discount note 10/20/99#............ 175,830
100,000 Discount note 02/09/00#............ 98,017
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$ 200,000 Morgan Stanley Dean Witter and
Company
5.460%+ 10/01/99++............... $ 200,000
Moriarty Ltd.
179,000 Discount note 10/01/99#............ 179,000
127,771 Discount note 10/22/99#............ 127,380
65,000 Discount note 10/28/99#............ 64,744
114,600 Discount note 10/29/99#............ 114,130
Ness LLC
60,000 Discount note 11/15/99#............ 59,606
50,000 Discount note 02/29/00#............ 48,857
100,000 Discount note 04/28/00#............ 96,728
100,000 New Center Asset Trust
Discount note 10/01/99............. 100,000
Park Avenue Receivables
169,514 Discount note 10/01/99#............ 169,514
149,413 Discount note 10/07/99#............ 149,279
178,823 Discount note 10/18/99#............ 178,370
77,550 Discount note 03/08/00#............ 75,563
35,000 PHH Corporation
Discount note 11/10/99............. 34,802
Republic Industries Funding
77,000 Discount note 10/20/99#............ 76,782
92,000 Discount note 10/27/99#............ 91,640
66,114 Rio Tinto America Inc.
Discount note 10/01/99#............ 66,114
SAFECO Corporation
50,000 Discount note 10/19/99#............ 49,866
45,000 Discount note 02/23/00#............ 43,940
75,000 Discount note 03/21/00#............ 72,904
SAFECO Credit Company
50,000 Discount note 10/13/99............. 49,910
38,000 Discount note 03/08/00............. 37,016
76,000 Discount note 03/15/00............. 73,950
125,000 Salomon Smith Barney Holdings Inc.
Discount note 03/08/00............. 121,798
Sigma Finance, Inc.
50,000 Discount note 10/19/99#............ 49,878
100,000 Discount note 10/21/99#............ 99,711
100,000 Discount note 02/04/00#............ 98,093
139,969 Thames Asset Global Securitization
5.330%+ 10/15/99++#.............. 139,953
Tulip Funding Corporation
74,609 Discount note 10/12/99#............ 74,487
100,373 Discount note 10/14/99#............ 100,185
191,273 Discount note 10/25/99#............ 190,609
99,058 Discount note 10/26/99#............ 98,700
197,921 Discount note 02/15/00#............ 193,530
975,145 UBS Finance (Delaware) Inc.
Discount note 10/01/99............. 975,144
237,342 Variable Funding Capital
Corporation
Discount note 10/01/99#............ 237,342
Victory Receivables Corporation
78,038 Discount note 10/25/99#............ 77,764
61,627 Discount note 02/10/00#............ 60,304
102,778 Discount note 02/28/00#............ 100,290
WCP Funding Inc.
121,500 Discount note 10/01/99#............ 121,500
100,000 Discount note 10/27/99#............ 99,614
75,000 Discount note 10/28/99#............ 74,699
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$ 100,000 World Omni Vehicle Leasing, Inc.
Discount note 10/18/99#............ $ 99,744
-----------
12,532,638
-----------
CORPORATE BONDS AND NOTES -- 20.4%
Abbey National Treasury Services
plc
20,000 5.050% 04/17/00.................... 19,989
100,000 5.185% 05/12/00.................... 99,962
American Honda Finance Corporation
100,000 5.260%+ 10/08/99++##............... 99,974
50,000 5.310%+ 10/20/99++##............... 49,992
75,000 5.493%+ 12/06/99++##............... 74,923
25,000 5.503%+ 12/07/99++##............... 24,974
50,000 5.481%+ 12/22/99++##............... 49,991
Bear, Stearns and Company, Inc.
69,000 5.811%+ 10/04/99++................. 69,000
100,000 5.453%+ 10/24/99++................. 100,000
75,000 5.764%+ 11/04/99++................. 75,000
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
70,000 5.750% 06/28/00.................... 70,000
140,000 6.120% 09/07/00.................... 140,000
15,000 Beneficial Corporation (MTN)
8.170% 11/09/99.................. 15,049
Beta Finance, Inc.
50,000 5.450%+ 10/01/99++##............... 50,000
50,000 5.530%+ 10/01/99++##............... 50,000
22,000 5.050% 02/08/00##.................. 22,000
CC (USA) Inc.
25,000 5.140% 01/19/00##.................. 25,000
50,000 5.050% 02/08/00##.................. 50,000
50,000 5.083% 02/16/00##.................. 49,999
50,000 5.135% 02/16/00##.................. 50,000
8,250 Chrysler Financial Company LLC
12.750% 11/01/99................. 8,303
CIT Group Inc.
33,000 5.430%+ 10/01/99++................. 32,999
100,000 5.450%+ 10/01/99++................. 100,000
22,500 5.875% 12/09/99.................... 22,531
20,000 Countrywide Home Loans Inc.
5.250% 01/13/00.................. 20,000
Credit Suisse First Boston, Inc.
50,000 5.450%+ 10/01/99++##............... 49,994
70,000 5.380%+ 10/09/99++##............... 69,993
350,000 Finova Capital Corporation
5.600%+ 10/15/99++............... 349,999
200,000 Ford Motor Credit Company
5.435% 11/18/99++.................. 199,853
45,000 General Electric Capital
Corporation
5.293%+ 11/03/99++............... 45,000
125,000 General Electric Capital
Corporation (MTN)
5.390%+ 11/12/99++............... 125,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
General Motors Acceptance
Corporation
$ 35,000 5.210%+ 10/08/99++................. $ 34,999
25,000 5.250%+ 10/20/99++................. 24,996
70,000 5.750% 07/28/00.................... 69,982
Goldman Sachs Group, Inc.
100,000 5.510%+ 10/07/99++................. 100,000
100,000 5.400%+ 10/10/99++@................ 100,000
50,000 5.280% 02/24/00##.................. 50,000
100,000 6.000% 03/08/00.................... 100,000
100,000 6.000% 08/07/00##.................. 100,000
100,000 6.100% 08/21/00##.................. 100,000
250,000 6.100% 09/25/00##.................. 250,000
300,000 GTE Corporation
5.546%+ 12/13/99++............... 299,865
17,500 International Lease Finance
Corporation
4.850% 11/08/99.................. 17,497
50,000 J.P. Morgan and Company, Inc.
5.473%+ 11/29/99++............... 50,000
K2 (USA) LLC
52,000 5.796%+ 10/05/99++##............... 52,000
100,000 5.365%+ 10/15/99++##............... 100,000
50,000 5.260% 05/08/00##.................. 50,000
50,000 5.300% 05/22/00##.................. 50,000
Lehman Brothers Holdings Inc.
75,000 6.182% 08/04/00.................... 75,000
50,000 6.375% 10/23/00.................... 49,998
Merrill Lynch and Company
100,000 5.400%+ 10/01/99++................. 100,000
67,000 5.460%+ 10/01/99++................. 67,000
50,000 5.085% 11/26/99.................... 50,000
50,000 Morgan Guaranty Trust Company of
New York
5.380%+ 10/15/99++............... 49,999
200,000 Morgan Stanley Dean Witter and
Company
5.510%+ 10/01/99++............... 200,000
43,200 Salomon Smith Barney Inc.
6.250% 10/01/99.................. 43,200
Sigma Finance, Inc.
100,000 5.465%+ 10/01/99++##............... 100,000
45,000 5.190% 02/18/00##.................. 45,000
50,000 5.200% 02/22/00##.................. 50,000
50,000 5.220% 02/23/00##.................. 50,000
60,000 5.330% 03/01/00##.................. 60,000
50,000 5.280% 05/11/00##.................. 50,000
125,000 5.440% 05/24/00##.................. 125,000
100,000 5.500% 06/02/00##.................. 100,000
60,000 5.800% 07/24/00##.................. 60,000
SMM Trust Series 1999-B
50,000 5.570%+ 12/05/99++##(++)........... 50,000
100,000 5.449% 03/15/00##(++).............. 100,000
75,000 SMM Trust Series 1999-I
5.493%+ 11/26/99++##(++)......... 75,000
100,000 Toyota Motor Credit Corporation
5.480%+ 10/01/99++............... 100,000
$ 105,000 Transamerica Finance Corporation
5.475%+ 11/11/99++............... $ 105,000
50,000 Xerox Credit Corporation
5.113% 03/21/00.................. 49,992
-----------
5,694,053
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $18,226,691)................. 18,226,691
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
FUNDING AGREEMENTS -- 1.6%
$ 75,000 Commonwealth Life Insurance
Company Inc.
5.550%+ 10/01/99++(++)........... $ 75,000
First Allmerica Financial Life
Insurance Company
50,000 5.543%+ 10/01/99++(++)............. 50,000
50,000 5.630%+ 11/15/99++(++)............. 50,000
50,000 5.631%+ 12/22/99++(++)............. 50,000
Jackson National Life Insurance
Company
50,000 5.100%+ 10/01/99++(++)............. 50,000
50,000 5.600%+ 12/14/99++(++)............. 50,000
100,000 New York Life Insurance Company
5.379%+ 10/01/99++(++)........... 100,000
25,000 Peoples Security Life Insurance
Company
5.430%+ 10/01/99++(++)........... 25,000
-----------
TOTAL FUNDING AGREEMENTS
(Cost $450,000).................... 450,000
-----------
MUNICIPAL BONDS AND NOTES -- 0.7%
28,800 Illinois, Student Assistance
Commission Revenue, Series 1990B,
(GTD STD LNS, First National Bank
of Chicago LOC),
5.380%+ 10/06/99++............... 28,800
18,400 Missouri State, Economic
Development Export Revenue,
(Biocraft Labs, Inc. Project)
Series 1989, (PNC Bank LOC),
5.450%+ 10/06/99++............... 18,400
140,000 Virginia State, Housing Development
Authority, Commonwealth Revenue,
Series 1996E,
5.350%+ 10/06/99++............... 140,000
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $187,200).................... 187,200
-----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 0.2%
FEDERAL HOME LOAN BANK (FHLB) -- 0.2%
25,000 4.820% 02/10/00.................... 24,989
25,000 4.950% 02/17/00.................... 24,995
15,000 4.995% 02/24/00.................... 14,997
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $64,981)..................... 64,981
-----------
REPURCHASE AGREEMENTS -- 4.0%
8,939 Agreement with Bank of New York,
4.750% dated 09/30/99 to be
repurchased at $8,940 on 10/01/99
collateralized by: $9,118 U.S.
Treasury Bills, due 09/14/00..... 8,939
600,000 Agreement with J.P. Morgan
Securities Inc., 5.650% dated
09/30/99 to be repurchased at
$600,094 on 10/01/99
collateralized by: $470,000
Various Commercial Paper, due
11/16/99 - 03/17/00; $142,000
Deutsche Bank AG Certificates of
Deposit, due 03/28/00............ 600,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT -- (CONTINUED)
$ 200,000 Agreement with Lehman Brothers
Inc., 5.600% dated 09/30/99 to be
repurchased at $200,031 on
10/01/99 collateralized by:
$204,002 Various Commercial
Paper, due 10/01/99 - 11/05/99... $ 200,000
100,000 Agreement with Lehman Brothers
Inc., 5.750% dated 09/30/99 to be
repurchased at $100,016 on
10/01/99 collateralized by:
$102,004 Various Commercial
Paper, due 10/01/99 - 02/25/00... 100,000
200,000 Agreement with Merrill Lynch
Government Securities Inc.,
5.700% dated 09/30/99 to be
repurchased at $200,032 on
10/01/99 collateralized by:
$214,913 Various Commercial
Paper, due 10/05/99 - 11/30/99... 200,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,108,939).................. 1,108,939
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ---------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.0%@@
10,536 AIM Liquid Asset Portfolio........ 10,536
474 AIM Prime Fund.................... 474
1,484 Dreyfus Cash Management Plus
Fund............................ 1,484
------------
TOTAL INVESTMENT COMPANIES
(Cost $12,494).................. 12,494
------------
TOTAL INVESTMENTS
(Cost $27,958,946*)...... 100.0% 27,958,946
------------
OTHER ASSETS AND
LIABILITIES (NET)........ 0.0%
Receivable for investment
securities sold................. $ 10,836,753
Receivable for Fund shares sold... 1,872,422
Interest receivable............... 131,080
Prepaid expenses.................. 33
Payable for Fund shares
redeemed........................ (2,357,289)
Investment advisory fee payable... (3,359)
Administration fee payable........ (275)
Shareholder servicing and
distribution fees payable....... (7,129)
Due to custodian.................. (3)
Dividends payable................. (108,341)
Payable for investment securities
purchased....................... (10,353,527)
Accrued Trustees' fees and
expenses........................ (109)
Accrued expenses and other
liabilities..................... (2,764)
------------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)........................... 7,492
------------
NET ASSETS................. 100.0% $ 27,966,438
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income.......................... $ 27
Accumulated net realized loss on
investments sold................ (15)
Paid-in capital................... 27,966,426
------------
Net Assets........................ $ 27,966,438
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($8,362,650,847 / 8,363,642,914
shares outstanding)............. $1.00
----
----
LIQUIDITY CLASS SHARES:
($1,485,195,651 / 1,485,193,658
shares outstanding)............. $1.00
----
----
ADVISER CLASS SHARES:
($3,953,567,397 / 3,954,295,521
shares outstanding)............. $1.00
----
----
MARKET CLASS SHARES:
($2,210,001,765 / 2,210,000,010
shares outstanding)............. $1.00
----
----
DAILY CLASS SHARES:
($7,177,267,799 / 7,177,774,942
shares outstanding)............. $1.00
----
----
INVESTOR CLASS SHARES:
($2,866,525,648 / 2,867,335,227
shares outstanding)............. $1.00
----
----
TRUST CLASS SHARES:
($1,596,359,860 / 1,596,359,713
shares outstanding)............. $1.00
----
----
SERVICE CLASS SHARES:
($314,868,825 / 314,906,603 shares
outstanding).................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 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, as amended.
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, as amended. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
@@ Amount represents less than 0.1%.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 26.9%
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 11.6%
$50,000 Chase Manhattan Bank USA, N.A.
5.288%+ 10/25/99++.................... $ 49,979
First Union National Bank
20,000 5.450%+ 10/01/99++.................... 20,000
50,000 5.560%+ 10/01/99++.................... 50,000
5,000 Key Bank, N.A.
5.650% 06/26/00....................... 4,998
50,000 National City Bank of Cleveland
5.706%+ 10/05/99++.................... 49,976
50,000 Northern Rock plc
5.503%+ 12/14/99++##.................. 50,000
--------
224,953
--------
CERTIFICATES OF DEPOSIT -- YANKEE -- 3.6%
10,000 Bayerische Hypotheken-und-Vereinsbank,
(New York)
5.075% 02/10/00....................... 9,999
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 5.100% 02/18/00......................... 9,999
10,000 National Bank of Canada, (New York)
5.150% 04/26/00....................... 9,997
25,000 United Bank of Switzerland, (New York)
5.080% 01/13/00....................... 24,997
--------
69,992
--------
TIME DEPOSITS -- EURO -- 11.7%
50,000 Canadian Imperial Bank of Commerce
5.625% 10/01/99....................... 50,000
60,000 Deutsche Bank
5.688% 10/01/99....................... 60,000
70,000 First National Bank of Chicago
5.680% 10/01/99....................... 70,000
45,872 Westdeutsche Landesbanken, Girozentrale
5.750% 10/01/99....................... 45,872
--------
225,872
--------
TOTAL BANK OBLIGATIONS
(Cost $520,817)....................... 520,817
--------
CORPORATE OBLIGATIONS -- 73.0%
COMMERCIAL PAPER -- 44.8%
30,000 Associates Corporation of North America
Discount note 10/01/99................ 30,000
20,000 Bavaria TRR Corporation (Bayersiche
Hypo)
Discount note 01/27/00#............... 19,639
15,000 Bear, Stearns and Company, Inc.
Discount note 04/19/00................ 14,534
50,000 CC (USA) Inc.
Discount note 02/25/00#............... 48,808
15,000 Corporate Receivables Corporation
Discount note 10/28/99#............... 14,940
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$ 7,181 Edison Securitization LLC
Discount note 02/29/00#............... $ 7,005
20,000 Falcon Asset Securitization Corporation
Discount note 10/21/99#............... 19,941
5,000 General Electric Capital Corporation
Discount note 10/04/99................ 4,998
General Motors Acceptance Corporation
5,000 6.625% 04/17/00....................... 5,025
10,000 6.625% 06/08/00....................... 10,063
26,264 Greyhawk Funding LLC
Discount note 10/01/99#............... 26,264
Hitachi America, Ltd.
8,850 Discount note 02/29/00................ 8,633
25,000 Discount note 03/07/00................ 24,364
International Securitization Corporation
6,545 Discount note 10/26/99#............... 6,520
28,048 Discount note 10/27/99#............... 27,941
40,000 Discount note 10/28/99#............... 39,837
6,200 Discount note 02/24/00#............... 6,054
K2 (USA) LLC
15,000 Discount note 10/15/99#............... 14,970
15,000 Discount note 01/28/00#............... 14,727
20,500 Discount note 03/02/00#............... 19,999
20,000 Links Finance LLC
Discount note 03/15/00#............... 19,459
Moriarty Ltd.
15,000 Discount note 10/01/99#............... 15,000
15,000 Discount note 10/28/99#............... 14,941
50,000 Discount note 03/01/00#............... 48,778
50,100 Ness LLC
Discount note 10/01/99#............... 50,100
25,000 Park Avenue Receivables
Discount note 02/22/00#............... 24,423
Repsol International Finance
13,908 Discount note 10/14/99................ 13,882
19,431 Discount note 11/10/99................ 19,319
Rio Tinto America Inc.
40,000 Discount note 10/01/99#............... 40,000
11,300 Discount note 10/01/99#............... 11,300
25,000 Discount note 10/07/99#............... 24,978
Thames Asset Global Securitization
44,366 Discount note 10/27/99#............... 44,191
8,254 Discount note 10/29/99#............... 8,219
20,000 Tulip Funding Corporation
Discount note 02/14/00#............... 19,564
Victory Receivables Corporation
40,114 5.350% 10/01/99#...................... 40,114
20,000 Discount note 02/18/00#............... 19,553
20,000 WCP Funding Inc
Discount note 02/17/00#............... 19,548
70,000 World Omni Vehicle Leasing, Inc.
5.450% 10/27/99#...................... 69,724
--------
867,355
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- 28.2%
$10,000 Abbey National Treasury Services plc
5.050% 04/17/00....................... $ 9,995
American Honda Finance Corporation
13,000 5.480%+ 11/24/99++##.................. 12,983
50,000 5.503%+ 12/07/99++##.................. 49,948
25,000 AT&T Corporation
5.270%+ 10/13/99++.................... 24,992
Bear, Stearns and Company, Inc.
5,050 5.370%+ 10/12/99++.................... 5,045
10,000 5.170% 02/10/00....................... 10,000
5,000 5.180% 02/18/00....................... 5,000
5,000 5.750% 06/28/00....................... 5,000
10,000 6.120% 09/07/00....................... 10,000
50,000 Credit Suisse First Boston, Inc.
5.380%+ 10/09/99++##.................. 49,995
25,000 Ford Motor Credit Company
5.435%+ 11/18/99++.................... 24,982
30,000 General Electric Capital Corporation
5.293%+ 11/03/99++.................... 30,000
25,000 General Electric Capital Corporation
(MTN)
5.390%+ 11/12/99++.................... 25,000
25,000 General Motors Acceptance Corporation
5.440%+ 12/01/99++.................... 24,963
Goldman Sachs Group, Inc.
25,000 5.510%+ 10/07/99++.................... 25,000
25,000 5.400%+ 10/10/99++@................... 25,000
25,000 5.280% 02/24/00##..................... 25,000
10,000 J.P. Morgan Securities Inc.
5.600% 06/23/00....................... 10,000
Merrill Lynch and Company
8,000 5.460%+ 10/01/99++.................... 8,000
30,000 5.566%+ 12/27/99++.................... 29,995
Sigma Finance, Inc.
50,000 5.465%+ 10/01/99++##.................. 49,999
15,000 5.190% 02/18/00##..................... 15,000
10,000 5.220% 02/23/00##..................... 10,000
50,000 SMM Trust Series 1999-E
5.323%+ 10/06/99++(++)................ 50,000
10,000 Xerox Corporation
5.635% 07/14/00....................... 9,995
--------
545,892
--------
TOTAL CORPORATE OBLIGATIONS (Cost
$1,413,247)........................... 1,413,247
--------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- -----------------------------------------------------------
- --------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS (Cost
$1,934,064*)................ 99.9% $1,934,064
----------
OTHER ASSETS AND LIABILITIES
(NET)....................... 0.1%
Cash................................. $ 16
Receivable for investment securities
sold............................... 396,785
Receivable for Fund shares sold...... 3,225
Interest receivable.................. 8,712
Receivable from investment advisor... 21
Prepaid expenses..................... 1
Payable for Fund shares redeemed..... (67,675)
Administration fee payable........... (30)
Shareholder servicing and
distribution fees payable.......... (330)
Dividends payable.................... (7,256)
Payable for investment securities
purchased.......................... (332,219)
Accrued Trustees' fees and
expenses........................... (17)
Accrued expenses and other
liabilities........................ (177)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. 1,056
----------
NET ASSETS.................... 100.0% $1,935,120
==========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................. $ 4
Accumulated net realized loss on
investments sold................... (11)
Paid-in capital...................... 1,935,127
----------
NET ASSETS........................... $1,935,120
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($1,087,535,933 / 1,087,536,803
shares outstanding)................ $1.00
----
----
LIQUIDITY CLASS SHARES:
($17,045,893 / 17,045,895 shares
outstanding)....................... $1.00
----
----
ADVISER CLASS SHARES:
($34,261,970 / 34,262,005 shares
outstanding)....................... $1.00
----
----
MARKET CLASS SHARES:
($785,993,776 / 786,000,010 shares
outstanding)....................... $1.00
----
----
DAILY CLASS SHARES:
($4,782,754 / 4,782,754 shares
outstanding)....................... $1.00
----
----
SERVICE CLASS SHARES:
($5,500,010 / 5,500,010 shares
outstanding)....................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 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, as amended.
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, as amended. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 23.2%
U.S. TREASURY NOTES -- 23.2%
$ 50,000 5.625% 10/31/99(+)................ $ 50,033
25,000 7.500% 10/31/99(+)................ 25,055
173,000 5.875% 11/15/99(+)................ 173,230
140,000 5.625% 11/30/99(+)................ 140,210
25,000 7.750% 11/30/99(+)................ 25,118
50,000 5.625% 12/31/99 .................. 50,100
125,000 7.750% 12/31/99 .................. 125,904
25,000 6.375% 01/15/00(+)................ 25,113
107,000 5.375% 01/31/00(+)................ 107,214
73,000 5.875% 02/15/00(+)................ 73,279
105,000 5.500% 02/29/00(+)................ 105,181
70,000 5.500% 03/31/00 .................. 70,056
80,000 6.375% 05/15/00(+)................ 80,619
80,000 5.500% 05/31/00(+)................ 80,068
60,000 5.375% 06/30/00(+)................ 59,988
200,000 5.375% 07/31/00(+)................ 199,902
65,000 6.250% 08/31/00 .................. 65,461
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,456,531)............... 1,456,531
-----------
REPURCHASE AGREEMENTS -- 95.1%
1,640,000 Agreement with ABN AMRO Inc.,
5.355% dated 09/30/99 to be
repurchased at $1,640,244 on
10/01/99 collateralized by:
$1,281,267 U.S. Treasury Strips,
Interest Only, due 05/15/03 -
08/15/16; $391,533 U.S. Treasury
Strips, Principal Only, due
11/15/14 - 05/15/20............. 1,640,000
320,000 Agreement with Barclays Capital
Inc., 5.300% dated 09/30/99 to
be repurchased at $320,047 on
10/01/99 collateralized by:
$118,972 U.S. Treasury Bonds,
3.625% - 3.875% due
04/15/28 - 04/15/29; $183,976
U.S. Treasury Strips, Interest
Only, due 07/15/02 - 02/15/27;
$23,453 U.S. Treasury Strips,
Principal Only, due 11/15/14 -
02/15/27........................ 320,000
320,000 Agreement with Bear, Stearns and
Company, Inc., 5.450% dated
09/30/99 to be repurchased at
$320,048 on 10/01/99
collateralized by: $260,847
GNMA, 5.000% - 8.000% due
09/15/14 - 09/15/29; $74,725
GNMA II, 6.000% - 9.500% due
08/20/28 - 09/20/29............. 320,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 628,442 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 10/01/99
collateralized by: $182,707 U.S.
Treasury Bonds, 6.250% - 13.875%
due 02/15/01 - 08/15/27;
$208,228 U.S. Treasury Notes,
6.250% - 8.500% due
11/15/00 - 08/15/05; $222,274
U.S. Treasury Strips, Interest
Only, 11/15/99 - 05/15/24;
$36,486 U.S. Treasury Strips,
Principal Only, due
11/15/99 - 11/15/27++........... $ 628,442
195,000 Agreement with Deutsche Bank
Securities Inc., 5.300% dated
09/30/99 to be repurchased at
$195,029 on 10/01/99
collateralized by: $97,657 U.S.
Treasury Bonds, 6.500% - 10.750%
due 02/15/03 - 11/15/26; $53
U.S. Treasury Notes, 6.250% due
04/30/01; $101,190 U.S. Treasury
Strips, Interest Only, due
07/15/02........................ 195,000
120,000 Agreement with First Union Capital
Markets, 5.330% dated 09/30/99
to be repurchased at $120,018 on
10/01/99 collateralized by:
$122,401 U.S. Treasury Notes,
6.000% - 7.125% due
02/29/00 - 08/15/00............. 120,000
195,000 Agreement with First Union Capital
Markets, 5.500% dated 09/30/99
to be repurchased at $195,030 on
10/01/99 collateralized by:
$88,479 GNMA, 6.500% due
04/15/29 - 06/15/29; $110,421
GNMA II, 6.125% - 7.000% due
10/20/21 - 05/20/28............. 195,000
280,000 Agreement with Goldman Sachs and
Company, 5.500%, with a final
maturity date of 02/02/00.
Interest receivable as of
September 30, 1999 was $2,396,
collateralized by: $273,673
GNMA, 5.500% - 13.000% due
05/15/00 - 09/15/29; $11,927
GNMA II, 5.500% - 14.000% due
12/20/99 - 09/20/29(++)......... 280,000
320,000 Agreement with J.P. Morgan
Securities Inc., 5.450% dated
09/30/99 to be repurchased at
$320,048 on 10/01/99
collateralized by: $326,400
GNMA, 6.000% - 9.000% due
04/15/16 - 12/15/28............. 320,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 320,000 Agreement with Merrill Lynch
Government Securities, Inc.,
5.250% dated 09/30/99 to be
repurchased at $320,047 on
10/01/99 collateralized by:
$171,732 U.S. Treasury Bonds,
6.750% due 08/15/26; $154,670
U.S. Treasury Strips, Principal
Only, due 05/15/17 - 08/15/26... $ 320,000
320,000 Agreement with Morgan Stanley Dean
Witter and Company, 5.350% dated
09/30/99 to be repurchased at
$320,048 on 10/01/99
collateralized by: $263,417
GNMA, 5.500% - 11.000% due
03/15/01 - 09/15/29; $66,184
GNMA II, 4.500% - 8.500% due
06/20/21 - 09/20/29............. 320,000
320,000 Agreement with S.G. Cowen
Securities Corporation, 5.450%
dated 09/30/99 to be repurchased
at $320,048 on 10/01/99
collateralized by: $328,713
GNMA, 6.000% - 8.000% due
11/15/03 - 09/15/29; $698 GNMA
II, 6.500% due 12/20/28......... 320,000
533,413 Agreement with Salomon Smith
Barney Inc., Interest is payable
monthly. The agreement is
terminable by the Fund daily.
The final maturity date of the
agreement is 10/01/99
collateralized by: $1,005 U.S.
Treasury Notes, 4.500% due
09/30/00; $347,572 U.S. Treasury
Strips, Interest Only,
02/15/06 - 02/15/15; $196,165
U.S. Treasury Strips, Principal
Only, 11/15/18 - 11/15/21++..... 533,413
150,000 Agreement with Salomon Smith
Barney Inc., 5.375% dated
09/30/99 to be repurchased at
$150,022 on 10/01/99
collateralized by: $50,316 GNMA
7.000% due 01/15/26 - 05/15/29;
$102,684 GNMA II, 6.375% -
6.625% due
04/20/24 - 08/20/27............. 150,000
320,000 Agreement with Westdeutsche
Landesbank, Girozentrale, 5.400%
dated 09/30/99 to be repurchased
at $320,048 on 10/01/99
collateralized by: $181,896
GNMA, 6.000% - 6.500% due
07/15/28 - 05/15/29; $144,504
GNMA II, 6.500% - 7.000% due
08/20/29 - 09/20/29............. 320,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,981,855)............... 5,981,855
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.2%
1,367 AIM Treasury Fund................. $ 1,367
8,706 Dreyfus Treasury Cash Management
Fund............................ 8,706
-----------
TOTAL INVESTMENT COMPANIES (Cost
$10,073)........................ 10,073
-----------
TOTAL INVESTMENTS (Cost
$7,448,459*)............. 118.5% 7,448,459
-----------
OTHER ASSETS AND
LIABILITIES (NET)........ (18.5)%
Receivable for investment
securities sold................. $ 4,891,279
Receivable for Fund shares sold... 348,795
Dividends receivable.............. 56
Interest receivable............... 26,965
Prepaid expenses.................. 5
Payable for reverse repurchase
agreements...................... (1,161,855)
Payable for Fund shares
redeemed........................ (636,727)
Investment advisory fee payable... (773)
Administration fee payable........ (95)
Shareholder servicing and
distribution fees payable....... (1,600)
Due to custodian.................. (85)
Dividends payable................. (24,554)
Payable for investment securities
purchased....................... (4,605,462)
Accrued Trustees' fees and
expenses........................ (58)
Accrued expenses and other
liabilities..................... (855)
-----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)............... (1,164,964)
-----------
NET ASSETS................. 100.0% $ 6,283,495
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- -------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................ $ (122)
Paid-in capital................... 6,283,617
-----------
NET ASSETS........................ $ 6,283,495
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($1,430,987,955 / 1,431,226,019
shares outstanding)............. $1.00
----
----
LIQUIDITY CLASS SHARES:
($258,127,306 / 258,145,603 shares
outstanding).................... $1.00
----
----
ADVISER CLASS SHARES:
($1,576,320,693 / 1,576,839,125
shares outstanding)............. $1.00
----
----
MARKET CLASS SHARES:
($1,377,431,638 / 1,377,500,010
shares outstanding)............. $1.00
----
----
DAILY CLASS SHARES:
($647,883,964 / 647,989,758 shares
outstanding).................... $1.00
----
----
INVESTOR CLASS SHARES:
($316,321,838 / 316,528,465 shares
outstanding).................... $1.00
----
----
TRUST CLASS SHARES:
($543,123,873 / 543,123,721 shares
outstanding).................... $1.00
----
----
SERVICE CLASS SHARES:
($133,297,710 / 133,319,353 shares
outstanding).................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
(+) Denotes security, or a portion thereof, subject to repurchase under reverse
repurchase agreement as of September 30, 1999 (Note 1).
(++) Restricted Security (Note 5).
++ Security segregated as collateral for reverse repurchase agreement.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS RESERVES MONEY MARKET FUNDS
Nations Government Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 124.7%
FEDERAL FARM CREDIT BANK (FFCB) -- 1.4%
$ 25,000 5.211%+ 10/01/99++................. $ 24,993
-----------
FEDERAL HOME LOAN BANK (FHLB) -- 109.7%
10,000 5.260%+ 10/01/99++................. 9,999
12,000 5.260%+ 10/01/99++................. 12,000
12,000 5.305%+ 10/01/99++................. 11,997
75,000 5.360%+ 10/01/99++................. 74,979
50,000 5.086%+ 10/12/99++................. 49,981
170,000 5.241%+ 10/21/99++................. 169,951
100,000 5.238%+ 10/27/99++................. 99,965
100,000 .000%+ 11/04/99++.................. 99,956
200,000 .000%+ 01/04/00++.................. 199,862
12,000 4.900% 01/14/00.................... 12,000
10,000 4.980% 01/19/00.................... 10,001
10,000 4.910% 02/09/00.................... 10,000
5,000 4.820% 02/10/00.................... 4,997
10,000 4.950% 02/24/00.................... 9,997
5,000 4.995% 02/24/00.................... 4,999
12,000 5.100% 03/03/00.................... 11,998
19,000 5.150% 03/08/00.................... 18,993
12,000 5.050% 04/26/00.................... 11,999
5,000 5.020% 05/12/00.................... 4,996
26,730 5.415% 06/14/00.................... 26,702
15,310 5.500% 07/14/00.................... 15,284
15,000 5.710% 08/09/00.................... 14,999
25,000 5.750% 09/01/00.................... 24,988
15,000 5.875% 09/07/00.................... 14,997
25,000 5.705% 10/06/00.................... 24,956
623,716 Discount note 10/01/99............. 623,715
45,000 Discount note 10/06/99............. 44,967
12,860 Discount note 10/20/99............. 12,828
42,228 Discount note 10/22/99............. 42,103
200,000 Discount note 10/27/99............. 199,250
25,000 Discount note 02/02/00............. 24,535
40,365 Discount note 02/09/00............. 39,560
25,000 Discount note 02/25/00............. 24,439
40,000 Discount note 03/01/00............. 39,068
10,000 Discount note 03/16/00............. 9,780
-----------
2,010,841
-----------
STUDENT LOAN MARKETING ASSOCIATION (SLMA) --
13.6%
125,000 .000%+ 10/04/99++.................. 124,939
40,000 5.556%+ 10/05/99++................. 39,986
75,000 5.556%+ 10/05/99++................. 74,973
10,000 4.930% 02/08/00.................... 10,000
-----------
249,898
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $2,285,732)................ 2,285,732
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
- ------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS (Cost
$2,285,732*).............. 124.7% $2,285,732
----------
OTHER ASSETS AND LIABILITIES
(NET)..................... (24.7)%
Receivable for investment
securities sold.................. $ 665,479
Receivable for Fund shares sold.... 13,859
Interest receivable................ 5,325
Payable for Fund shares redeemed... (32,371)
Investment advisory fee payable.... (180)
Administration fee payable......... (27)
Shareholder servicing and
distribution fees payable........ (374)
Due to custodian................... (14)
Dividends payable.................. (6,509)
Payable for investment securities
purchased........................ (1,098,327)
Accrued Trustees' fees and
expenses......................... (17)
Accrued expenses and other
liabilities...................... (241)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................ (453,397)
----------
NET ASSETS.................. 100.0% $1,832,335
==========
NET ASSETS CONSIST OF:
Accumulated net realized gain on
investments sold................. $ 2
Paid-in capital.................... 1,832,333
----------
NET ASSETS......................... $1,832,335
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS RESERVES MONEY MARKET FUNDS
Nations Government Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- ------------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE
CAPITAL CLASS SHARES:
($622,807,227 / 622,956,133 shares
outstanding)..................... $1.00
----
----
LIQUIDITY CLASS SHARES:
($44,656,553 / 44,656,528 shares
outstanding)..................... $1.00
----
----
ADVISER CLASS SHARES:
($402,426,137 / 402,739,852 shares
outstanding)..................... $1.00
----
----
MARKET CLASS SHARES:
($360,500,127 / 360,500,010 shares
outstanding)..................... $1.00
----
----
DAILY CLASS SHARES:
($165,671,811 / 165,671,811 shares
outstanding)..................... $1.00
----
----
INVESTOR CLASS SHARES:
($112,879,651 / 113,188,011 shares
outstanding)..................... $1.00
----
----
TRUST CLASS SHARES:
($121,393,485 / 121,393,485 shares
outstanding)..................... $1.00
----
----
SERVICE CLASS SHARES:
($2,000,010 / 2,000,010 shares
outstanding)..................... $1.00
----
----
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
+ Floating rate security. The interest rate shown reflects the rate in effect at
September 30, 1999.
++ Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 100.8%
ALABAMA -- 1.1%
$ 335 Arab, Alabama, Industrial Development
Board, IDR, (Syncro Corporation
Project) Series 1992, AMT,
(SouthTrust Bank, N.A. LOC),
4.000% 06/01/02**#.................. $ 335
6,200 Columbia, Alabama, Industrial
Development Board, PCR, (Alabama
Power Company Project) Series 1995A,
3.900% 05/01/22**................... 6,200
1,100 Foley, Alabama, Industrial Development
Board, IDR, (Vulcan Inc. Project)
Series 1985, (AmSouth Bank of
Alabama LOC),
3.950% 12/01/00**#.................. 1,100
6,150 Gadsen, Alabama, Industrial
Development Board, PCR Refunding,
(Alabama Power Company Project)
Series 1994,
3.950% 06/01/15**................... 6,150
1,700 Parrish, Alabama, Industrial
Development Board, PCR, (Alabama
Power Company Project) Series 1994,
3.900% 06/01/15**................... 1,700
----------
15,485
----------
ALASKA -- 4.0%
16,700 Alaska Industrial Development and
Export Authority, Exempt Facilities
Revenue, (AMAX Gold, Inc. Project)
Series 1997, AMT, (UBS AG LOC),
3.850% 05/01/09**................... 16,700
9,995 Alaska State Housing Finance
Corporation, Housing Revenue, Series
1998, P-Floats PA-332, (MBIA
Insured, Merrill Lynch SBPA),
3.850% 12/01/19**#(++).............. 9,995
29,550 Valdez, Alaska, Marine Terminal
Revenue Refunding, (ARCO
Transportation Alaska, Inc. Project)
Series 1994B, (Atlantic Richfield
Company Guarantee),
3.750% 05/01/31**................... 29,550
----------
56,245
----------
ARIZONA -- 1.2%
14,700 Apache County, Arizona, Industrial
Development Authority, Revenue,
(Tucson Electric Power Company
Project) Series 1983A, (Toronto
Dominion Bank LOC),
3.800% 12/15/18**................... 14,700
1,000 Maricopa County, Arizona, Pollution
Control Corporation, PCR, (Arizona
Public Service Company Project)
Series 1994C, (Toronto Dominion Bank
LOC),
3.900% 05/01/29**................... 1,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
ARIZONA -- (CONTINUED)
$ 1,000 Pinal County, Arizona, Industrial
Development Authority, PCR
Refunding, (Magna Copper Company
Project) Series 1992, (Banque
Nationale de Paris LOC),
3.750% 12/01/11**................... $ 1,000
----------
16,700
----------
ARKANSAS -- 0.5%
1,200 Arkansas State Development Finance
Authority, Higher Education Capital
Asset Revenue, Series 1985, (FGIC
Insured, Citibank SBPA),
3.800% 12/01/15**................... 1,200
6,500 Crossett, Arkansas, PCR Refunding,
(Georgia-Pacific Corporation
Project) Series 1998, (SunTrust Bank
LOC),
3.750% 08/01/04**#.................. 6,500
----------
7,700
----------
CALIFORNIA -- 1.5%
20,000 California Higher Education Loan
Authority, Inc., Student Loan
Revenue, Series 1987, (Student Loan
Marketing LOC), Mandatory Tender
07/01/00,
3.500% 07/01/02..................... 20,000
1,000 Los Angeles, California, Regional
Airports Improvement Corporation,
Lease Revenue, (American Airlines,
Inc. Project) Series 1984A,
(Wachovia Bank of Georgia LOC),
3.800% 12/01/24**................... 1,000
----------
21,000
----------
COLORADO -- 4.2%
1,300 Colorado Health Facilities Authority,
Revenue, (Goodwill Industries, Inc.
Project) Series 1994, (Bank One of
Colorado, N.A. LOC),
3.850% 12/01/04**#.................. 1,300
2,895 Colorado Post-Secondary Educational
Facilities Authority, Economic
Development Revenue, (U.S. Swimming,
Inc. Project) Series 1996, Bank One,
N.A. LOC),
3.850% 06/01/11**#.................. 2,895
975 Larimer County, Colorado, Industrial
Development Revenue Refunding,
(Ultimate Support Systems Project)
Series 1995A, (Bank One of Colorado,
N.A. LOC),
3.850% 06/01/10**#.................. 975
1,800 Moffat County, Colorado, PCR,
(PacifiCorp Project) Series 1994,
(AMBAC Insured, Bank of New York
SBPA),
3.800% 05/01/13**................... 1,800
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
COLORADO -- (CONTINUED)
$50,500 Moffat County, Colorado, PCR,
(Tri-State Colorado - Utah Electric
Cooperative Project) Series 1984,
(AMBAC Insured, Societe Generale
SBPA),
3.850% 07/01/10**................... $ 50,500
2,500 Pitkin County, Colorado, IDR, (Aspen
Skiing Company Project) Series
1984B, AMT, (First National Bank of
Chicago LOC),
4.000% 04/01/14**................... 2,500
----------
59,970
----------
DELAWARE -- 6.9%
6,425 Delaware State Economic Development
Authority, Hospital Billing Revenue,
Series 1985, (MBIA Insured, Morgan
Stanley SBPA),
3.850% 12/01/15**................... 6,425
42,350 Delaware State Economic Development
Authority, Hospital Billing Revenue,
Series 1985B, (MBIA Insured, Morgan
Stanley SBPA),
3.850% 12/01/15**................... 42,350
48,600 Delaware State Economic Development
Authority, IDR, (Star Enterprise -
Delaware Clean Power Project) Series
1997A, AMT, (Canadian Imperial Bank
of Commerce LOC),
3.900% 08/01/29**................... 48,600
----------
97,375
----------
DISTRICT OF COLUMBIA -- 0.7%
8,800 District of Columbia, GO, Series
1992A-3, (Societe Generale LOC),
4.000% 10/01/07**................... 8,800
1,400 District of Columbia, GO, Series
1992A-5, (Bank of Nova Scotia LOC),
4.000% 10/01/07**................... 1,400
----------
10,200
----------
FLORIDA -- 4.8%
2,775 Brevard County, Florida, Housing
Finance Authority, Multi-Family
Housing Revenue, (Malabar Lakes,
Ltd. Project) Series 1993A, (US
Bank, N.A. LOC),
3.700% 12/01/10**#.................. 2,775
9,100 Collier County, Florida, Industrial
Development Authority, Health Care
Facilities Revenue, Series 1999A,
(First Union National Bank LOC),
3.900% 11/01/19**................... 9,100
4,800 Florida Housing Finance Agency, Multi-
Family Housing Revenue, (Lakes of
NorthDale Project) Series 1984D,
(SouthTrust Bank of Alabama LOC),
3.900% 06/01/07**................... 4,800
7,000 Florida Housing Finance Corporation,
Revenue, Homeowner Mortgage, Series
4, (Bayerische Landesbank LOC),
3.050% 03/31/00..................... 6,993
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
FLORIDA -- (CONTINUED)
$20,000 Florida State Turnpike Authority,
Turnpike Revenue, Series 1999-1,
(MBIA Insured, Chase Manhattan Bank
SBPA),
3.870% 07/01/19**##(++)............. $20,000
1,845 Fort Walton Beach, Florida, IDR,
(Burton Golf, Inc. Project) Series
1996, AMT, (Columbus Bank and Trust
LOC),
4.050% 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),
3.850% 10/01/15**................... 7,000
3,000 Palm Beach County, Florida, Economic
Development Revenue, (YMCA Boynton
Beach Project) Series 1999,
(SunTrust Bank of South Florida
LOC),
3.800% 01/01/24**#.................. 3,000
3,000 Polk County, Florida, Industrial
Development Authority, Revenue,
(Farmland Hydro, LP Project) Series
1998, AMT, (Rabobank Nederland LOC),
3.850% 02/01/29**................... 3,000
9,500 University of North Florida
Foundation, Inc., Capital
Improvement Revenue, Series 1997,
(First Union National Bank LOC),
3.850% 11/01/27**................... 9,500
----------
68,013
----------
GEORGIA -- 8.1%
1,140 Clayton County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Chateau Forest
Apartments Project) Series 1990E,
(FSA Insured, Societe Generale
SBPA),
3.800% 01/01/21**................... 1,140
3,945 Clayton County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Ten Oaks
Apartments Project) Series 1990F,
(FSA Insured, Societe Generale
SBPA),
3.800% 01/01/21**................... 3,945
2,000 Cobb County, Georgia, Development
Authority, Revenue Refunding,
(Highlands Park Associates Project)
Series 1998, (SunTrust Bank LOC),
3.800% 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),
3.800% 08/01/15**#.................. 1,900
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 2,985 Columbia County, Georgia, Residential
Care Facilities for the Elderly
Authority, Revenue, (Augusta
Residential Center on Aging Project)
Series 1994, (SunTrust Bank LOC),
3.800% 01/01/21**#.................. $ 2,985
3,000 DeKalb County, Georgia, Development
Authority, Revenue, (Marist School,
Inc. Project) Series 1999, (SunTrust
Bank LOC),
3.800% 03/01/24**#.................. 3,000
6,050 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue Refunding, (Camden Brook
Project) Series 1995, (FNMA
Collateral Agreement),
3.800% 06/15/25**................... 6,050
1,400 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue, (Cedar Creek Apartments
Project) Series 1995, AMT, (General
Electric Capital Corporation
Guarantee),
3.950% 12/01/20**#.................. 1,400
4,800 DeKalb County, Georgia, Housing
Authority, Multi-Family Housing
Revenue, (Crow Wood Arbor
Associates, Ltd. Project) Series
1985, (Wachovia Bank of North
Carolina LOC),
3.800% 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),
3.800% 12/01/10**#.................. 3,500
3,500 Fulton County, Georgia, Development
Authority, Revenue, (Georgia Tech
Athletic Association, Inc. Project)
Series 1995, (SunTrust Bank LOC),
3.800% 07/01/14**#.................. 3,500
3,000 Fulton County, Georgia, Development
Authority, Revenue, (Lovett School
Project) Series 1997, (SunTrust Bank
LOC),
3.800% 04/01/17**#.................. 3,000
15,000 Gainesville, Georgia, Redevelopment
Authority, Educational Facilities
Revenue, (Riverside Military
Project) Series 1999, (Wachovia Bank
N.A. LOC),
3.800% 07/01/24**#.................. 15,000
1,150 Municipal Electric Authority of
Georgia, Subordinated Revenue,
(Georgia MEAG Project Number One)
Series 1994D, (ABN-AMRO Bank N.V.
LOC),
3.750% 01/01/22**................... 1,150
37,560 Municipal Electric Authority of
Georgia, Subordinated Revenue,
(Georgia MEAG Project Number One)
Series 1994E, (ABN-AMRO Bank N.V.
LOC),
3.800% 01/01/26**................... 37,560
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 5,800 Richmond County, Georgia, Development
Authority, Solid Waste Disposal
Revenue, (Evergreen Nylon Project)
Series 1999, AMT, (Banque Nationale
de Paris LOC),
3.750% 07/01/32**................... $5,800
10,000 Richmond County, Georgia, Hospital
Authority, Revenue Anticipation
Certificates, (University Health
Services, Inc. Project) Series 1999,
AMT, (SunTrust Bank LOC),
3.800% 01/01/19**................... 10,000
7,000 Smyrna, Georgia, Housing Authority,
Multi-Family Housing Revenue, (Hills
of Post Village Series Project)
Series 1995, (FNMA Collateral
Agreement),
3.800% 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),
3.800% 06/01/25**#.................. 1,000
----------
114,730
----------
IDAHO -- 1.6%
14,000 Idaho State, GO, Series 1999,
4.250% 06/30/00..................... 14,086
8,500 Power County, Idaho, PCR, (FMC
Corporation Project) Series 1985,
(Wachovia Bank of North Carolina
LOC),
3.800% 12/01/10**................... 8,500
----------
22,586
----------
ILLINOIS -- 10.0%
1,135 Chicago, Illinois, IDR, (Guernsey Bel
Inc. Project) Series 1996A, AMT,
(LaSalle National Bank LOC),
3.840% 12/01/16**................... 1,135
2,500 Chicago, Illinois, O'Hare
International Airport Authority,
Industrial Revenue, (American
Airlines, Inc. Project) Series
1983C, (Royal Bank of Canada LOC),
3.950% 12/01/17**................... 2,500
9,900 Chicago, Illinois, O'Hare
International Airport Revenue,
(American Airlines, Inc. Project)
Series 1983A, (Credit Suisse First
Boston LOC),
3.950% 12/01/17**................... 9,900
13,400 Chicago, Illinois, O'Hare
International Airport Revenue,
(General Airport Project) Second
Lien, Series 1984A, (Societe
Generale LOC),
3.770% 01/01/15**................... 13,400
$ 4,355 Elmhurst, Illinois, Hospital Revenue,
(Joint Commission Accredidation
Healthcare Project) Series 1988,
(Credit Local de France LOC),
3.800% 07/01/18**................... $ 4,355
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 870 Illinois Development Finance
Authority, IDR, (Randolph Pickle
Corporation Project) Series 1992,
AMT, (American National Bank & Trust
Company LOC),
4.000% 06/01/12**................... $ 870
2,800 Illinois Development Finance
Authority, IDR, (Unique Building
Corporation Project) Series 1989,
AMT, (American National Bank & Trust
Company LOC),
4.000% 05/01/09**................... 2,800
32,100 Illinois Development Finance
Authority, Revenue, (Lyric Opera of
Chicago Project) Series 1994,
(Northern Trust Company LOC, Bank
One of Michigan LOC, Harris Trust &
Savings Bank LOC, Caisse Nationale
de Credit Agricole LOC),
3.800% 12/01/28**................... 32,100
1,900 Illinois Development Finance
Authority, Revenue, (Park Ridge
Youth Campus Project) Series 1998,
(Northern Trust Company LOC),
3.850% 09/01/18**#.................. 1,900
10,700 Illinois Development Finance
Authority, Revenue, (YMCA of
Metropolitan Chicago Project) Series
1996A, (Harris Trust & Savings Bank
LOC),
3.800% 06/01/26**................... 10,700
10,000 Illinois Development Financing
Authority, Revenue, (YMCA of
Metropolitan Chicago Project) Series
1999A, (Harris Trust & Savings Bank
LOC),
3.800% 06/01/29**................... 10,000
4,000 Illinois Educational Facilities
Authority, Revenue, (DePaul
University Project) Series 1992CP-1,
(Northern Trust LOC),
3.800% 04/01/26**................... 4,000
6,400 Illinois Educational Facilities
Authority, Revenue, (John F. Kennedy
Healthcare Foundation Project)
Series 1995, (LaSalle National Bank
LOC), Mandatory Put 02/02/00,
3.250% 12/01/25**................... 6,400
1,400 Illinois Educational Facilities
Authority, Revenue, (Northwestern
University Project) Series 1985,
(First National Bank of Chicago
SBPA),
3.850% 12/01/25**................... 1,400
1,500 Illinois Health Facilities Authority,
Revenue, (Dupage-Healthcorp Project)
Series 1990, (Rabobank Nederland
LOC),
4.000% 11/01/20**................... 1,500
8,000 Illinois Health Facilities Authority,
Revenue, (Revolving Fund Pooled
Project) Series 1985C, (First
National Bank of Chicago LOC),
3.800% 08/01/15**................... 8,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 5,600 Illinois State Educational Facilities
Authority, Revenue, (Chicago
Historical Society Project) Series
1985, (American National Bank &
Trust Company LOC),
3.800% 12/01/25**#.................. $ 5,600
10,000 Illinois State Health Facilities
Authority, Revenue, (Evanston
Hospital Corporation Project) Series
1985B,
3.650% 08/15/00**#.................. 10,000
1,500 Lombard Village, Illinois, Industrial
Projects Revenue Refunding, (B&H
Partnership Project) Series 1995,
(Comerica Bank LOC),
4.100% 10/01/13**................... 1,500
3,900 Madison County, Illinois,
Environmental Improvement Revenue,
(Shell Oil Company Project) Series
1997A, AMT,
3.950% 03/01/33**................... 3,900
9,200 Orland Park, Illinois, IDR, (Panduit
Corporation Project) Series 1996,
AMT, (Wachovia Bank of Georgia LOC),
3.900% 04/01/31**#.................. 9,200
----------
141,160
----------
INDIANA -- 2.0%
340 Auburn, Indiana, Economic Development
Revenue, (R.J. Tower Corporation
Project) Series 1988, AMT, (Comerica
Bank LOC),
4.000% 09/01/00**................... 340
2,500 Indiana Health Facilities Financing
Authority, Hospital Revenue,
(Deaconess Hospital Inc. Project)
Series 1992, (First National Bank of
Chicago LOC),
3.700% 01/01/22..................... 2,500
1,905 Indiana Health Facilities Financing
Authority, Revenue Refunding,
(Cardinal Center, Inc. Project)
Series 1996A, (Key Bank N.A. LOC),
3.850% 12/01/16**#.................. 1,905
8,000 Indiana State Hospital Equipment
Financing Authority, Revenue, Series
1985A, (MBIA Insured, Bank One of
Michigan SBPA),
3.750% 12/01/15**#.................. 8,000
2,700 Indianapolis, Indiana, Economic
Development Revenue, (Edgcomb Metals
Company Project) Series 1983, (Wells
Fargo Bank LOC),
3.800% 12/01/08**................... 2,700
665 Kendallville, Indiana, Industrial
Revenue, (McCray Memorial Hospital
Project) Series 1994, (Bank One of
Michigan LOC),
3.850% 01/01/04**#.................. 665
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
INDIANA -- (CONTINUED)
$ 3,600 Princeton, Indiana, PCR Refunding,
(PSI Energy, Inc. Project) Series
1996, (Canadian Imperial Bank of
Commerce LOC),
3.800% 03/01/19**................... $ 3,600
2,765 Rockport, Indiana, PCR Refunding, (AEP
Generating Company Project) Series
1995B, (AMBAC Insured, Bank of New
York SBPA),
3.800% 07/01/25**................... 2,765
2,900 Rockport, Indiana, PCR, (Indiana and
Michigan Electric Company Project)
Series 1985A, (UBS AG LOC),
3.850% 08/01/14**#.................. 2,900
3,100 Whiting, Indiana, Sewer and Solid
Waste Disposal Revenue, (Amoco Oil
Company Project) Series 1996, AMT,
(BP Amoco plc Guarantee),
4.000% 01/01/26**##................. 3,100
----------
28,475
----------
IOWA -- 0.6%
4,700 Iowa Higher Education Loan Authority,
Revenue, Series 1985, (MBIA Insured,
Chase Manhattan SBPA),
3.850% 12/01/15**................... 4,700
3,500 Iowa Student Loan Liquidity
Corporation, Student Loan Revenue,
Series 1998-1, (AMBAC Insured),
3.100% 12/01/99..................... 3,500
----------
8,200
----------
KENTUCKY -- 1.1%
1,092 Jefferson County, Kentucky, IDR,
(Belknap, Inc. Project) Series 1984,
(National City Bank, Kentucky LOC),
3.500% 12/01/14**#.................. 1,092
1,355 Jefferson County, Kentucky, Industrial
Building Revenue, (Seven Counties
Services, Inc. Project) Series 1996,
(Bank One of Kentucky, N.A. LOC),
3.900% 06/01/11**#.................. 1,355
1,050 Jeffersontown, Kentucky, Industrial
Building Revenue, (Raque Food
Systems, Inc. Project) Series 1995,
AMT, (PNC Bank, N.A. LOC),
3.950% 04/01/20**#.................. 1,050
1,500 Kentucky Development Finance
Authority, Revenue, Series 1985A,
(FGIC Insured, Landesbank Hessen
Thueringen SBPA),
3.800% 12/01/15**................... 1,500
2,550 Kentucky Housing Corporation, Housing
Revenue, Series 1999C, AMT,
Mandatory Redemption 12/31/99,
3.200% 07/01/00..................... 2,550
3,100 Lexington-Fayette County, Kentucky,
Urban County Airport Corporation,
Revenue, (First Mortgage Project)
Series 1994A, AMT, (Credit Local de
France LOC),
4.100% 04/01/24**................... 3,100
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
KENTUCKY -- (CONTINUED)
$ 4,400 Louisville and Jefferson County,
Kentucky, Convention Center GO,
Series 1996PT-69, (FSA Insured,
Merrill Lynch SBPA),
3.850% 07/01/24**#.................. $ 4,400
----------
15,047
----------
LOUISIANA -- 3.0%
8,000 Ascension Parish, Louisiana, PCR
Refunding, (Borden, Inc. Project)
Series 1992, (Credit Suisse First
Boston LOC),
3.770% 12/01/09**................... 8,000
3,700 Ascension Parish, Louisiana, PCR,
(Shell Oil Company Project) Series
1993,
3.950% 09/01/23**................... 3,700
2,900 Calcasieu Parish Inc., Louisiana,
Industrial Development Board,
Environmental Revenue, (Citgo
Petroleum Corporation Project)
Series 1994, AMT, (Banque Nationale
de Paris LOC),
4.000% 12/01/24**................... 2,900
2,000 Calcasieu Parish Inc., Louisiana,
Industrial Development Board,
Environmental Revenue, (Citgo
Petroleum Corporation Project)
Series 1996, AMT, (ABN-AMRO Bank
N.V.),
4.000% 07/01/26**................... 2,000
2,300 Lake Charles, Louisiana, Harbor and
Terminal District, Revenue, (Citgo
Petroleum Corporation Project)
Series 1984, (Westdeutsche
Landesbank Girozentrale LOC),
3.800% 08/01/07**................... 2,300
5,000 Plaquemines, Louisiana, Port Harbor
and Terminal District, Port
Facilities Revenue, (International
Marine Terminals Project) Series
1984A, (KBC Bank N.V. LOC),
Mandatory Put 03/15/00,
3.050% 03/15/06..................... 5,000
3,300 Plaquemines, Louisiana, Port Harbor
and Terminal District, Port
Facilities Revenue, (International
Marine Terminals Project) Series
1984B, (KBC Bank N.V. LOC),
3.050% 03/15/00..................... 3,300
15,500 South Louisiana Ports Commission,
Marine Terminal Facilities Revenue
Refunding, (Occidental Petroleum
Corporation Project) Series 1991,
(Royal Bank of Canada LOC),
3.750% 07/01/21**................... 15,500
----------
42,700
----------
MARYLAND -- 2.7%
3,000 Baltimore County, Maryland, Economic
Development, Revenue, (Notre Dame
Preparatory School Project) Series
1998, (Crestar Bank LOC),
3.800% 06/01/24**#.................. 3,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
MARYLAND -- (CONTINUED)
$34,700 Baltimore, Maryland, Industrial
Development Authority, IDR,
(Baltimore Capital Acquisition
Project) Series 1986, (Bayerische
Landesbank LOC),
3.800% 08/01/16**................... $ 34,700
----------
37,700
----------
MASSACHUSETTS -- 1.5%
2,000 Boston, Massachusetts, GO, Series
1990A, Prerefunded,
7.100% 02/01/00..................... 2,069
2,000 Massachusetts State Water Resource
Authority, Revenue, Series 1990A,
7.625% 04/01/00..................... 2,091
17,565 Massachusetts, GO, Series 1999, (FGIC
Insured, Morgan Guaranty Trust
SBPA),
3.780% 06/01/07**................... 17,565
----------
21,725
----------
MICHIGAN -- 1.2%
1,100 Delta County, Michigan, Economic
Development Corporation,
Environmental Improvement Revenue,
(Mead-Escanaba Paper Corporation
Project) Series 1985F, (Bank of Nova
Scotia LOC),
3.900% 12/01/13**................... 1,100
2,650 Grand Rapids, Michigan, Water Supply
Revenue, Series 1993, (FGIC Insured,
Societe Generale SBPA),
3.800% 01/01/20**................... 2,650
2,000 Michigan Municipal Bond Authority
Revenue, Series 1999A-1,
4.000% 06/30/00..................... 2,008
3,500 Michigan State Housing Development
Authority, Housing Revenue, (Shoal
Creek Project) Series 1985,
(Wachovia Bank LOC),
3.800% 10/01/07**................... 3,500
4,000 Michigan State Job Development
Authority, Revenue, (Gordon Food
Service Inc. Project) Series 1985,
(Rabobank Nederland LOC),
3.750% 08/01/15**................... 4,000
1,300 Monroe County, Michigan, Economic
Development Corporation, Limited
Obligation Revenue, (Detroit Edison
Company Project) Series 1992CC,
(Barclays Bank plc LOC),
3.900% 10/01/24**................... 1,300
3,000 University of Michigan, Hospital
Revenue Refunding, (University of
Michigan Hospitals Project) Series
1992A,
3.800% 12/01/19**................... 3,000
----------
17,558
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
MINNESOTA -- 0.4%
$ 6,160 Minneapolis, Minnesota, Housing
Development Revenue Refunding,
(Symphony Place Project) Series
1988, (American National Bank &
Trust Company LOC),
3.800% 12/01/14**................... $ 6,160
----------
MISSOURI -- 1.5%
5,500 Missouri Higher Education Loan
Authority, Student Loan Revenue,
Series 1990B, (National Westminister
Bank plc LOC),
3.900% 06/01/20**................... 5,500
5,000 Missouri State Environmental
Improvement and Energy Resources
Authority, PCR, (Union Electric
Company Project) Series 1985B,
(Westdeutsche Landesbank LOC),
3.450% 03/31/00**................... 5,000
1,700 Missouri State Health and Educational
Facilities Authority, Facilities
Revenue, (Washington University
Project) Series 1985B, (Morgan
Guaranty Trust SBPA),
3.750% 09/01/10**................... 1,700
6,500 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),
3.750% 06/01/14**................... 6,500
3,000 St. Charles County, Missouri,
Industrial Development Authority,
IDR, (AH Land Development Company
Project) Series 1996, AMT, (Commerce
Bank LOC),
3.870% 06/01/11**................... 3,000
----------
21,700
----------
MONTANA -- 0.2%
3,500 Forsyth, Montana, PCR, (Pacificorp
Colstrip Project) Series 1986, AMT,
(Deutsche Bank A.G. LOC),
4.100% 12/01/16**................... 3,500
----------
NEBRASKA -- 0.4%
5,195 Nebraska Help, Inc., Student Loan
Revenue, Series 1986B, AMT, (SLMA
Guarantee),
3.900% 12/01/16**................... 5,195
----------
NEVADA -- 1.7%
2,000 Clark County, Nevada, Airport
Improvement Revenue Refunding,
Series 1993A, (MBIA Insured,
Bayerische Hypotheken-und
Vereinsbank SBPA, Credit Local de
France SBPA, Chase Manhattan Bank
SBPA),
3.650% 07/01/12**................... 2,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
NEVADA -- (CONTINUED)
$ 5,750 Clark County, Nevada, IDR,
(Cogeneration Association I Project)
Series 1991, AMT, (Canadian Imperial
Bank of Commerce LOC),
3.900% 11/01/21**................... $ 5,750
10,700 Clark County, Nevada, IDR, (Nevada
Cogeneration Association Project)
Series 1992, AMT, (ABN-AMRO Bank
N.V. LOC),
3.950% 12/01/22**................... 10,700
5,500 Nevada Housing Division, Multi-Unit
Housing Revenue, Series 1999A, AMT,
(US Bank N.A. LOC),
3.850% 10/01/30**................... 5,500
----------
23,950
----------
NEW MEXICO -- 0.4%
5,900 Dona Ana County, New Mexico, IDR,
(Foamex Products, Inc. Project)
Series 1985, (Bank of Nova Scotia
LOC),
3.850% 11/01/13**#.................. 5,900
----------
NEW YORK -- 0.6%
8,000 Nassau County, New York, RAN, Series
1999, (Bank of New York LOC),
4.250% 03/15/00..................... 8,023
----------
NORTH CAROLINA -- 1.5%
10,000 North Carolina Medical Care Commission
Retirement Community, Revenue,
Series 1996, (LaSalle National Bank
LOC),
3.750% 11/15/09**................... 10,000
1,300 North Carolina Medical Care Community
Hospital, Revenue, (Moses H Cone
Memorial Hospital Project) Series
1995, (Wachovia Bank SBPA),
3.850% 09/01/02**................... 1,300
8,500 Robeson County, North Carolina,
Industrial Facilities and PCR
Financing Authority, Revenue, (Culp
Inc. Project) Series 1997, AMT,
(Wachovia Bank of North Carolina
LOC),
3.850% 06/01/14**#.................. 8,500
1,500 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),
3.850% 03/01/17**................... 1,500
----------
21,300
----------
NORTH DAKOTA -- 0.3%
2,600 Grand Forks, North Dakota, Health Care
Facilities Revenue, (The United
Hospital Obligated Group Project)
Series 1996A, (La Salle National
Bank LOC),
3.800% 12/01/25**#.................. 2,600
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
NORTH DAKOTA -- (CONTINUED)
$ 2,000 Grand Forks, North Dakota, Hospital
Facilities Revenue, (The United
Hospital Obligated Group Project)
Series 1992, (LaSalle National Bank
LOC),
3.800% 12/01/16**#.................. $ 2,000
----------
4,600
----------
OHIO -- 3.1%
940 Centerville, Ohio, Health Care
Revenue, (Bethany Lutheran Village
Hospital Project) Series 1994, (PNC
Bank of Ohio, N.A. LOC),
3.850% 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),
3.800% 06/01/11**#.................. 5,000
860 Cuyahoga County, Ohio, IDR Refunding,
(Pleasant Lakes Associates Project)
Series 1995, (Key Bank, N.A. LOC),
3.850% 05/01/11**#.................. 860
930 Greene County, Ohio, IDR, (FC, Ltd. -
AFC Stamping Project) Series 1995,
AMT, (Key Bank, N.A. LOC),
4.000% 09/01/16**#.................. 930
10,000 Lucas County, Ohio, Facilities
Improvement Revenue, (Toledo
Zoological Society Project) Series
1997, (Key Bank, N.A. LOC),
3.750% 10/01/05**#.................. 10,000
1,940 Lucas County, Ohio, IDR, (Dynamic
Dies, Inc. Project) Series 1997,
AMT, (National City Bank LOC),
4.000% 07/01/09**................... 1,940
2,279 Ohio Housing Finance Agency,
Multi-Family Housing Revenue,
(Kenwood Congregation - Retirement
Project) Series 1985, (Morgan
Guaranty Trust LOC),
3.350% 12/01/15**................... 2,279
10,000 Ohio State Air Quality Development
Authority, PCR, (Duquesne Light
Company Project) Series 1993A, (UBS
AG LOC),
3.500% 10/28/99**................... 10,000
3,000 Ohio State Air Quality Development
Authority, Revenue, (JMG Funding LP
Project) Series 1994B, AMT, (Societe
Generale LOC),
3.750% 04/01/28**................... 3,000
4,100 Ohio State Air Quality Development
Authority, Revenue, (JMG Funding LP
Project) Series 1995B, AMT, (Societe
Generale LOC),
3.750% 04/01/29**................... 4,100
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
OHIO -- (CONTINUED)
$ 2,000 Ohio State Water Development
Authority, Solid Waste Disposal
Revenue, (The Timken Company
Project) Series 1997, AMT, (Wachovia
Bank of North Carolina LOC),
3.850% 07/01/32**................... $ 4,100
1,200 Summit County, Ohio, IDR, (Oliver
Printing Company, Inc. Project)
Series 1997, AMT, (Bank One of
Akron, N.A. LOC),
3.950% 02/01/07**#.................. 1,200
1,045 Toledo-Lucas County, Ohio, Port
Authority, Facilities Improvement
Revenue, (YMCA of Greater Toledo
Project) Series 1996, (Fifth Third
Bank of Northwestern Ohio LOC),
3.800% 12/01/21**#.................. 1,045
----------
43,294
----------
OREGON -- 0.6%
2,000 Port of Portland, Oregon, IDR
Refunding, (Schnitzer Steel Products
Project) Series 1987, (Comerica Bank
LOC),
3.800% 11/01/07**#.................. 2,000
7,100 Port of Portland, Oregon, Special
Obligation Revenue, (Horizon Air
Industries, Inc. Project) Series
1997, (Bank of Montreal LOC),
3.850% 06/15/27**................... 7,100
----------
9,100
----------
PENNSYLVANIA -- 4.9%
13,225 Allegheny County, Pennsylvania, IDR
Refunding, (Duquesne Power Company
Project) Series 1992A, (Canadian
Imperial Bank of Commerce LOC),
3.500% 10/28/99**................... 13.225
7,300 Delaware County, Pennsylvania,
Industrial Development Authority,
PCR, (BP Exploration and Oil, Inc.
Project) Series 1985, (BP Amoco plc
Guarantee),
3.950% 12/01/09**................... 7,300
3,100 Elk County, Pennsylvania, Industrial
Development Authority, Revenue,
(Clarion Sintered Metals Project)
Series 1998, AMT, (PNC Bank, N.A.
LOC),
3.950% 03/01/09**#.................. 3,100
9,200 Emmaus, Pennsylvania, General
Authority Revenue, Series 1989,
Subseries B, (Bayerische Landesbank
LOC),
3.800% 03/01/24**................... 9,200
4,600 Emmaus, Pennsylvania, General
Authority Revenue, Series 1989D-16,
(KBC Bank N.V. LOC),
3.850% 03/01/24**................... 4,600
6,270 Hatfield Township, Pennsylvania,
Industrial Development Authority,
Revenue, (H&N Packaging Project)
Series 1999A, (Commerzbank LOC),
3.950% 04/01/19**#.................. 6,270
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
PENNSYLVANIA -- (CONTINUED)
$ 2,750 Pennsylvania Energy Development
Authority, Revenue, (B&W Ebensburg
Project), Series 1986, AMT,
(Landesbank Hessen-Thueringen
Girozentrale LOC),
3.750% 12/01/11**................... $ 2,750
2,800 Philadelphia, Pennsylvania, Authority
for Industrial Development, Revenue,
(Institute for Cancer Research - Fox
Chase Cancer Center Project) Series
1990A, (Morgan Guaranty Trust LOC),
3.900% 07/01/13**................... 2,800
16,400 Quakertown, Pennsylvania, General
Authority, Revenue, (Pooled
Financing Program) Series 1996A,
(PNC Bank, N.A. LOC),
3.900% 07/01/26**................... 16,400
1,760 Schuylkill County, Pennsylvania,
Industrial Development Authority,
Revenue, (Bon-Ton Stores Project)
Series 1992, AMT, (PNC Bank, N.A.
LOC),
3.950% 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),
3.850% 02/01/12**#.................. 1,240
----------
68,645
----------
SOUTH CAROLINA -- 4.2%
4,000 Anderson County, South Carolina, IDR,
(Mikron Corporation Project) Series
1998, AMT, (UBS AG LOC),
3.950% 11/01/12**#.................. 4,000
6,000 Berkeley County, South Carolina,
Exempt Facilities Industrial
Revenue, (Amoco Chemical Corporation
Project) Series 1997, AMT, (Amoco
Corporation Guarantee),
4.000% 04/01/27**................... 6,000
24,000 Charleston County, South Carolina,
School District, BAN, Series 1999,
(State Aid Withholding),
4.000% 05/01/00..................... 24,055
1,000 Cherokee County, South Carolina,
Industrial Revenue Refunding,
(Holmberg Electronic Corporation
Project) Series 1989, (Wachovia Bank
of North Carolina, N.A. LOC),
4.250% 11/01/04**#.................. 1,000
4,200 Greenville County, South Carolina,
Industrial Revenue, (Edgcomb Metals
Company Project) Series 1984, (Wells
Fargo Bank LOC),
3.750% 08/01/09**#.................. 4,200
10,600 Piedmont Municipal Power Agency, South
Carolina, Electric Revenue, Series
1996D, (MBIA Insured, Morgan
Guaranty Trust SBPA),
3.750% 01/01/25**................... 10,600
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 1,680 South Carolina Jobs Economic
Development Authority, Development
Revenue, (Spartanburg YMCA Project)
Series 1996, (First Union National
Bank LOC),
3.850% 06/01/18**#.................. $ 1,680
3,100 South Carolina Jobs Economic
Development Authority, Health
Facilities Revenue, (Greenville
Baptist Retirement Community
Project) Series 1997, (Wachovia Bank
of North Carolina LOC),
3.800% 10/01/19**#.................. 3,100
3,500 South Carolina Jobs Economic
Development Authority, IDR, (Banks
Construction Company Project) Series
1999, AMT, (Wachovia Bank N.A. LOC),
3.900% 05/01/09**#.................. 3,500
1,000 South Carolina Jobs Economic
Development Authority, IDR,
(Chambers Oakridge Landfill Project)
Series 1990, AMT, (Morgan Guaranty
Trust LOC),
3.900% 12/01/01**#.................. 1,000
700 York County, South Carolina, PCR,
(National Rural Utilities
Cooperative - North Carolina
Electricities Project) Series
1984N-2, (CFC Insured),
3.850% 09/15/14**................... 700
----------
59,835
----------
SOUTH DAKOTA -- 0.0%
630 South Dakota Economic Development
Financing Authority, IDR Refunding,
(Lomar Development Company Project)
Series 1996B, AMT, (US Bank, N.A.
LOC),
4.000% 08/01/08**#.................. 630
----------
TENNESSEE -- 4.0%
8,500 Bristol, Tennessee, Health and
Education Facilities, Revenue,
Series 1995A, (FGIC Insured,
Citibank SBPA),
3.850% 03/01/14**#(++).............. 8,500
10,400 Chattanooga-Hamilton County,
Tennessee, Hospital Authority,
Revenue Refunding, (Erlanger Medical
Center Project) Series 1987, (Morgan
Guaranty Trust LOC),
3.950% 10/01/17**................... 10,400
6,969 Cumberland County, Tennessee,
Industrial Development Board, IDR,
(Crossville Ceramics Company
Project) Series 1989, (Bank One
LOC),
3.800% 01/01/00**#.................. 6,969
2,000 Dickson County, Tennessee, Industrial
Development Board, Revenue, (The
Jackson Foundation - Renaissance
Learning Center Project) Series
1997, (SunTrust Bank of Nashville
LOC),
3.800% 11/01/12**#.................. 2,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
TENNESSEE -- (CONTINUED)
$ 6,485 Franklin County, Tennessee, Health and
Educational Facilities Board,
Revenue, (University of the South
Project) Series 1998B, (AmSouth Bank
of Alabama LOC),
3.800% 09/01/18**................... $ 6,485
1,265 Jefferson City, Tennessee, IDR, (BA
Properties Project) Series 1994,
AMT, (American National Bank & Trust
Company LOC),
3.900% 11/01/24**................... 1,265
9,195 Metropolitan Government Nashville &
Davidson County, Tennessee, Health
and Education Facilities Board,
Revenue, (Adventist/Sunbelt
Retirement Project) Series 1996A,
(SunTrust Bank Central Florida LOC),
3.800% 11/15/26**................... 9,195
7,170 Metropolitan Nashville, Tennessee,
Airport Authority, Special
Facilities Revenue, (American
Airlines, Inc. Project) Series
1995A, (Credit Suisse First Boston
LOC),
3.800% 10/01/12**................... 7,170
3,700 Monroe County, Tennessee, Industrial
Development Board, IDR, (American
Transit Corporation Project) Series
1986, (BankBoston LOC),
3.900% 08/01/06**#.................. 3,700
1,600 Springfield, Tennessee, Industrial
Development Board, Revenue, (All
American Homes of Tennessee Project)
Series 1994, AMT, (Bank One of
Michigan LOC),
4.000% 11/01/09**#.................. 1,600
----------
57,284
----------
TEXAS -- 14.2%
1,600 Angelina & Neches River Authority,
Texas, Industrial Development
Corporation, Solid Waste Revenue,
Series 1984B, (Credit Suisse First
Boston Corporation LOC),
4.000% 05/01/14**................... 1,600
2,100 Angelina & Neches River Authority,
Texas, Industrial Development
Corporation, Solid Waste Revenue,
Series 1984D, (Credit Suisse First
Boston Corporation LOC),
4.000% 05/01/14**................... 2,100
6,205 Azle, Texas, Independent School
District, GO Prerefunded, Series
1997A,
6.000% 02/15/00..................... 6,281
16,180 Dallas-Fort Worth, Texas,
International Airport Facility,
Revenue, (Airport
Facilities - Flightsafety Project)
Series 1999, AMT, (OBH, Inc.
Guarantee),
3.900% 07/01/32**#.................. 16,180
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 6,700 Grand Prairie, Texas, Housing Finance,
Multi-Family Housing Revenue, Series
1993, (General Electric Credit
Corporation Guarantee),
3.850% 06/01/10**................... $ 6,700
2,300 Grapevine, Texas, Industrial
Development Corporation, Airport
Revenue, (Southern Air
Transportation Project) Series 1993,
(Bank One Texas N.A. LOC),
3.850% 03/01/10**................... 2,300
2,500 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984A-1, (Morgan Guaranty
Trust LOC),
3.800% 12/01/24**................... 2,500
2,000 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984A-4, (Morgan Guaranty
Trust LOC),
3.800% 12/01/24**................... 2,000
200 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984B-1, (Morgan Guaranty
Trust LOC),
3.800% 12/01/24**................... 200
1,400 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984B-2, (Morgan Guaranty
Trust LOC),
3.800% 12/01/24**................... 1,400
1,000 Grapevine, Texas, Industrial
Development Corporation, Revenue,
(American Airlines, Inc. Project)
Series 1984B-4, (Morgan Guaranty
Trust LOC),
3.800% 12/01/24**................... 1,000
4,500 Guadalupe-Blanco, Texas, River
Authority, Revenue Refunding,
(Central Power & Light Company
Project) Series 1995, (ABN AMRO Bank
N.V. LOC),
3.800% 11/01/15**................... 4,500
7,600 Gulf Coast, Texas, Industrial
Development Authority, Marine
Terminal Revenue, (Amoco Oil Company
Project) Series 1993, AMT, (BP Amoco
plc Guarantee),
4.000% 04/01/28**................... 7,600
3,400 Gulf Coast, Texas, Waste Disposal
Authority, PCR, (Amoco Oil Company
Project) Series 1994, AMT, (BP Amoco
plc Guarantee),
4.000% 06/01/24**................... 3,400
4,000 Gulf Coast, Texas, Waste Disposal
Authority, Texas Environmental
Facilities Revenue, (Amoco Oil
Company Project) Series 1997, AMT,
(BP Amoco plc Guarantee),
4.000% 01/01/26**................... 4,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 6,250 Harris County, Texas, Health
Facilities Development Corporation,
Hospital Revenue, (Methodist
Hospital Project) Series 1997,
(Morgan Guaranty Trust SBPA,
Methodist Hospital SBPA),
3.950% 12/01/26**................... $ 6,250
21,800 Harris County, Texas, Health
Facilities Development Revenue,
(Methodist Hospital Project) Series
1994, (Morgan Guaranty Trust SBPA,
Methodist Hospital SBPA),
3.950% 12/01/25**................... 21,800
1,000 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines Inc. Project) Series
1984A-5, (Royal Bank of Canada LOC),
3.800% 12/01/14**................... 1,000
1,700 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984A-1, (Royal Bank of Canada LOC),
3.800% 12/01/14**................... 1,700
1,400 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984A-2, (Royal Bank of Canada LOC),
3.800% 12/01/14**................... 1,400
1,200 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984B-1, (Royal Bank of Canada LOC),
3.800% 12/01/14**................... 1,200
2,000 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984B-2, (Royal Bank of Canada LOC),
3.800% 12/01/14**................... 2,000
1,100 Lone Star, Texas, Airport Improvement
Authority, Revenue, (American
Airlines, Inc. Project) Series
1984B-5, (Royal Bank of Canada LOC),
3.800% 12/01/14**................... 1,100
4,300 McAllen, Texas, Health Facilities
Development Revenue, (McAllen
Associates Number One Project)
Series 1984, (PNC Bank, N.A. LOC),
3.900% 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),
3.850% 07/01/15**................... 1,200
3,300 Panhandle-Plains, Texas, Higher
Education Authority, Student Loan
Revenue, Series 1991B, AMT, (Student
Loan Marketing Guarantee),
3.750% 06/01/21**................... 3,300
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 5,000 Panhandle-Plains, Texas, Higher
Education Authority, Student Loan
Revenue, Series 1997Y, AMT, (Student
Loan Marketing Guarantee),
3.750% 10/01/02**................... $ 5,000
6,000 Port of Corpus Christi, Texas,
Industrial Development Corporation,
Environmental Facilities Revenue,
(Citgo Petroleum Corporation
Project) Series 1998, AMT, (Bank One
Oklahoma N.A. LOC),
4.000% 08/01/28**................... 6,000
1,200 Sabine River Authority, Texas, PCR
Refunding, (Texas Utilities Electric
Company Project) Series 1996, (AMBAC
Insured, Bank of New York SBPA),
3.800% 03/01/26**................... 1,200
4,100 Sabine River Authority, Texas, PCR,
(Texas Utilities Electric Company
Project) Series 1995A, AMT, (Morgan
Guaranty Trust LOC),
3.900% 04/01/30**................... 4,100
8,000 Sulphur Springs, Texas, IDR, (Hon
Industries Inc., Project) Series
1985, (Northern Trust Company LOC),
3.850% 12/01/13**#.................. 8,000
5,000 Texas Municipal Gas Corporation, Gas
Reserves Revenue, Sr. Lien, Series
1998, (FSA Insured, Societe Generale
SBPA),
3.750% 01/15/23**................... 5,000
60,000 Texas State, TRAN, Series 1999A,
4.500% 08/31/00..................... 60,425
1,000 Trinity River, Texas, Industrial
Development Authority, Revenue,
(Toys R Us - Nytex Inc. Project)
Series 1984, (Bankers Trust Company
LOC),
3.875% 11/01/14**#.................. 1,000
1,400 West Side Calhoun County, Texas,
Development Corporation, PCR, (Sohio
Chemical Corporation Project) Series
1985, (BP Amoco plc Guarantee),
3.950% 12/01/15**................... 1,400
----------
199,136
----------
UTAH -- 2.1%
9,900 Intermountain Power Agency, Utah,
Power Supply Revenue, Series 1996,
(FSA Insured, Chase Manhattan Bank
LOC, Chase Manhattan SBPA),
3.850% 07/01/03**#(++).............. 9,900
17,300 Salt Lake City, Utah, Revenue, (IHC
Health Services, Inc. Project)
Series 1990A, (Westdeutsche
Landesbank Girozentrale SBPA),
3.750% 01/01/20**................... 17,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
UTAH -- (CONTINUED)
$ 2,000 Salt Lake County, Utah, PCR Refunding,
(British Petroleum Company - Service
Station Holdings, Inc. Project)
Series 1994B, (BP Amoco plc
Guarantee),
3.950% 08/01/07**................... $ 2,000
----------
29,200
----------
VERMONT -- 0.1%
1,500 Vermont Educational and Health
Buildings Financing Agency, Revenue,
(Middlebury College Project) Series
1988A, Mandatory Put 11/01/99,
3.100% 11/01/27**................... 1,500
----------
VIRGINIA -- 1.0%
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),
3.800% 02/01/26**................... 5,800
6,825 Madison County, Virginia, Industrial
Development Authority, Revenue,
(Madison Wood Preservers Project)
Series 1998, AMT, (Wachovia Bank of
North Carolina LOC),
3.900% 06/01/13**#.................. 6,825
1,575 Winchester, Virginia, Industrial
Development Authority, Revenue,
(Midwesco Filter Resource, Inc.
Project) Series 1995, (Harris Trust
& Savings Bank LOC),
4.100% 08/01/07**................... 1,575
----------
14,200
----------
WASHINGTON -- 0.8%
800 Port of Skagit County, Washington,
Industrial Development Corporation,
Revenue, (Cascade Clear Water
Company Project) Series 1995, AMT,
(Key Bank N.A. LOC),
4.000% 12/01/20**#.................. 800
10,500 Washington State Public Power Supply
Systems, GO, (MBIA Insured, Credit
Suisse First Boston SBPA), Mandatory
Put 10/06/99,
3.000% 07/01/18..................... 10,500
----------
11,300
----------
WEST VIRGINIA -- 0.2%
1,500 Marshall County, West Virginia, PCR,
(Mountaineer Carbon Company Project)
Series 1985, (BP Amoco plc
Guarantee),
3.950% 12/01/20**................... 1,500
1,200 Ohio County, West Virginia, IDR, (Ohio
Valley - Clarksburg Drug Company
Project) Series 1986, AMT, (PNC Bank
of Ohio, N.A. LOC),
3.600% 12/01/01**#.................. 1,200
----------
2,700
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------
<C> <S> <C>
WISCONSIN -- 1.8%
$13,500 Kenosha, Wisconsin, Unified School
District No. 001, TRAN, Series
1999A,
4.150% 10/06/00..................... $ 13,552
880 Milwaukee, Wisconsin, IDR, (Mandel
Company Project) Series 1997, AMT,
(US Bank, N.A. LOC),
4.000% 04/01/07**................... 880
4,450 Pleasant Prairie, Wisconsin, IDR,
(Nucon Corporation Project) Series
1995, AMT, (American National Bank &
Trust Company LOC),
3.900% 02/01/22**#.................. 4,450
3,750 Sun Prairie, Wisconsin, Area School
District, TRAN, Series 1999,
4.000% 08/23/00..................... 3,761
3,000 Watertown, Wisconsin, Unified School
District, TRAN, Series 1998,
3.100% 10/28/99..................... 3,000
----------
25,643
----------
WYOMING -- 0.1%
1,300 Sublette County, Wyoming, PCR, (Exxon
Capital Ventures Project) Series
1987A, (Exxon Corporation
Guarantee),
3.850% 07/01/17**................... 1,300
----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $1,426,664)................... 1,426,664
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
- ------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 0.0%@@
50 AIM Tax-Exempt Fund................. 50
25 Federated Tax-Exempt Money Market
Fund.............................. 25
----------
TOTAL INVESTMENT COMPANIES
(Cost $75)........................ 75
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,426,739*)......... 100.8% $1,426,739
----------
OTHER ASSETS AND
LIABILITIES (NET).......... (0.8)%
Cash................................ $ 6,557
Receivable for investment securities
sold.............................. 18,000
Receivable for Fund shares sold..... 19,016
Dividends receivable................ 52
Interest receivable................. 6,478
Prepaid expenses.................... 2
Payable for Fund shares redeemed.... (5,049)
Investment advisory fee payable..... (24)
Administration fee payable.......... (24)
Shareholder servicing and
distribution fees payable......... (369)
Dividends payable................... (3,585)
Payable for investment securities
purchased......................... (52,412)
Accrued Trustees' fees and
expenses.......................... (17)
Accrued expenses and other
liabilities....................... (443)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................. (11,818)
----------
NET ASSETS................... 100.0% $1,414,921
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold.................. $ (2)
Paid-in capital..................... 1,414,923
----------
NET ASSETS.......................... $1,414,921
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
- -----------------------------------------------------------
<C> <S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($118,219,788 / 118,413,224 shares
outstanding)...................... $1.00
====
LIQUIDITY CLASS SHARES:
($140,011,973 / 140,012,320 shares
outstanding)...................... $1.00
====
ADVISER CLASS SHARES:
($98,782,333 / 98,840,622 shares
outstanding)...................... $1.00
====
MARKET CLASS SHARES:
($159,999,271 / 160,000,010 shares
outstanding)...................... $1.00
====
DAILY CLASS SHARES:
($340,579,937 / 340,587,376 shares
outstanding)...................... $1.00
====
INVESTOR CLASS SHARES:
($61,728,554 / 61,773,999 shares
outstanding)...................... $1.00
====
TRUST CLASS SHARES:
($495,599,000 / 495,599,000 shares
outstanding)...................... $1.00
====
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 1999. These securities are subject to demand
features of either one, seven or thirty days.
(++) Restricted Security (Note 5).
# Securities are not registered under the Securities Act of 1933, as amended.
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, as amended. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
@@ Amount represents less than 0.1%.
Nations Municipal Reserves Fund had the following industry concentrations
greater than 10% at September 30, 1999 (as a percentage of net assets):
HealthCare Revenue 14.7%
Pollution Control Revenue 12.4%
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 99.0%
CALIFORNIA -- 95.5%
$ 7,740 Alameda Corridor Transportation
Authority, California, Revenue,
Series 1999CMC-1,
3.650% 10/01/13**#................. $ 7,740
10,000 Alameda, California, Public Financing
Authority Revenue, (Alameda Point &
Improvement Project) Series 1999A,
3.250% 09/01/12**.................. 10,000
5,500 Anaheim, California, Unified High
School District, Certificates of
Participation, (School Faculty
Bridging Funding Project) Series
1999, (FSA Insured, First Union
National Bank SBPA),
3.500% 09/01/13**.................. 5,500
3,012 California Department of Water
Resources, Water Revenue, Series 1,
2.950% 11/17/99.................... 3,012
3,500 California Educational Facilities
Authority, Revenue, (Foundation for
Educational Achievement Project)
Series 1996A, (Banque Nationale de
Paris LOC),
3.400% 07/01/26**.................. 3,500
1,200 California Health Facilities Finance
Authority, Revenue, (UCSF-Stanford
Healthcare Project) Series 1998B,
5.000% 11/15/99.................... 1,203
10,995 California Health Facilities Finance
Authority, Revenue, Series
1998CMC-6,
3.650% 06/01/12**#................. 10,995
4,450 California Health Facilities
Financing Authority, Revenue
Refunding, (Memorial Health
Services Project) Series 1994,
3.450% 10/01/24**.................. 4,450
1,000 California Health Facilities
Financing Authority, Revenue,
(Catholic Healthcare West Project)
Series 1995C, (MBIA Insured,
Rabobank Nederland SBPA),
3.400% 07/01/11**.................. 1,000
8,770 California Health Facilities
Financing Authority, Revenue,
(Kaiser Permanente Project) Series
1989A,
7.000% 10/01/99.................... 8,945
22,000 California Housing Finance Agency,
(Single-Family Mortgage Progam)
Series 1999E-II, AMT,
3.400% 08/01/00.................... 22,000
11,950 California Housing Finance Agency,
Housing Revenue,
3.550% 08/01/16**.................. 11,950
2,000 California Housing Finance Agency,
Multi-Unit Rental Housing Revenue,
Series 1992A, (MBIA Insured),
3.400% 08/01/07**.................. 2,000
3,020 California Housing Finance Agency,
Multi-Unit Rental Housing Revenue,
Series 1992A, (MBIA Insured),
3.400% 08/01/08**.................. 3,020
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 4,210 California Housing Finance Agency,
Revenue, Series 1993PA-58,
3.520% 02/01/24**#................. $ 4,210
3,190 California Housing Finance Agency,
Single-Family Mortgage Revenue,
Series 1999B, Class IV, AMT, (FGIC
Insured),
3.000% 02/01/00.................... 3,190
4,200 California Pollution Control Finance
Authority, PCR, (Southern
California Edison Project) Series
1985B,
3.100% 03/01/08.................... 4,200
7,000 California Pollution Control Finance
Authority, PCR, (Southern
California Edison Project) Series
1985B,
3.350% 03/01/08.................... 7,000
13,350 California Pollution Control Finance
Authority, PCR, (Southern
California Edison Project) Series
1985D,
3.300% 03/01/08.................... 13,350
1,000 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1996B,
AMT, (Rabobank Nederland LOC),
3.350% 12/01/16**.................. 1,000
14,570 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1996G,
3.750% 02/01/16**.................. 14,570
6,600 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1997A,
(Toronto Dominion Bank LOC),
3.700% 12/01/18**.................. 6,600
2,400 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1997B,
AMT, (Deutsche Bank A.G. LOC),
3.750% 11/01/26**.................. 2,400
97,000 California Pollution Control
Financing Authority, PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1997C,
AMT, (KBC Bank N.V. LOC),
3.750% 11/01/26**.................. 97,000
3,790 California Pollution Control
Financing Authority, PCR, (Chevron
USA, Inc. Project) Series 1984,
3.100% 05/15/02.................... 3,792
3,700 California Pollution Control
Financing Authority, PCR, (Shell
Oil Company Project) Series 1991A,
3.450% 10/01/08**.................. 3,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 3,000 California Pollution Control
Financing Authority, PCR, (Shell
Oil Company Project) Series 1991A,
3.450% 10/01/10**.................. $ 3,000
15,100 California Pollution Control
Financing Authority, PCR, (Southern
California Edison Company Project)
Series 1985B,
3.150% 10/27/99.................... 15,100
3,500 California Pollution Control
Financing Authority, PCR, (Southern
California Edison Company Project)
Series 1985C,
3.350% 03/01/08.................... 3,500
20,000 California Pollution Control
Financing Authority, PCR, (Southern
California Edison Company Project)
Series 1985C,
3.400% 03/01/08.................... 20,000
3,600 California Pollution Control
Financing Authority, Resource
Recovery PCR, (Delano Project)
Series 1990, AMT, (ABN-AMRO Bank
N.V. LOC),
3.850% 08/01/19**.................. 3,600
24,000 California Pollution Control
Financing Authority, Resource
Recovery Revenue, (Atlantic
Richfield Company Project) Series
1994A,
3.850% 12/01/24**.................. 24,000
1,900 California Pollution Control
Financing Authority, Solid Waste
Disposal Revenue, (Santa Clara
Valley Industries Project) Series
1998A, AMT,
3.600% 03/01/18**.................. 1,900
1,000 California Pollution Control
Financing Authority, Solid Waste
Disposal Revenue, (Shell Oil
Company Martinez Project) Series
1994A, AMT,
3.750% 10/01/24**.................. 1,000
2,000 California Pollution Control
Financing Authority, Solid Waste
Disposal Revenue, (Shell Oil
Company Martinez Project) Series
1994B,
3.750% 12/01/24**.................. 2,000
17,270 California State Department of Water
Resources,
3.800% 12/01/29**#................. 17,270
1,000 California State Department of Water
Resources, Water Systems Revenue,
(Center Valley Project) Series
1992J-2,
5.200% 12/01/99.................... 1,003
1,950 California State Economic Development
Financing Authority, IDR, (Volk
Enterprises, Inc. Project) Series
1996, (Harris Trust & Savings Bank
LOC),
3.450% 06/01/21**.................. 1,950
1,100 California State, Economic
Development Financing Authority,
IDR, (Calco LLC Project) Series
1997, (Wells Fargo Bank N.A. LOC),
3.750% 04/01/27**.................. 1,100
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 1,000 California State, Floating Rate
Receipts, Series 1996-SG86,
3.850% 08/01/15**#................. $ 1,000
8,385 California State, Floating Rate
Receipts, Series 1997-SG95,
3.520% 09/01/16**#................. 8,385
3,975 California State, GO Municipal Trust
Receipts, Series 1996-SGB-7, (FGIC-
TCRS Insured),
3.620% 09/01/21**(++).............. 3,975
40,000 California State, GO,
3.050% 10/21/99.................... 40,001
35,000 California State, GO, Floating Rate
Receipts, Series 1998-PT1072,
3.520% 02/01/21**#................. 35,000
15,950 California State, GO, Municipal Trust
Receipts, Series 1997-SGA54, (AMBAC
Insured, Societe Generale SBPA),
3.470% 06/01/21**#................. 15,950
8,400 California Statewide Communities
Development Authority, Certificates
of Participation, (North California
Retired Officers Project) Series
1996,
3.800% 06/01/26**.................. 8,400
3,000 California Statewide Communities
Development Authority, Certificates
of Participation, (University
Retirement Community at Davis
Project) Series 1998, (Bank of
Scotland LOC),
3.700% 11/15/28**.................. 3,000
1,000 California Statewide Communities
Development Authority, Lease
Revenue, Floating Rate Receipts,
Series 1999-PA457,
3.650% 10/01/33**(++).............. 1,000
6,240 California Statewide Communities
Development Authority, Multi-Family
Revenue, Floating Rate Receipt,
Series 1999-PT1161,
3.820% 12/01/41**#................. 6,240
12,900 California Statewide Communities
Development Authority, Solid Waste
Facilities Revenue, (Chevron USA
Inc. Project) Series 1994, AMT,
(GTY-AGMT, Chevron Corporation),
3.800% 12/15/24**.................. 12,900
25,940 California Statewide Communities
Development Authority, Special
Facilities Revenue, Series 1999,
3.650% 10/01/34**(++).............. 25,940
15,000 California, GO,
2.900% 10/19/99.................... 15,000
25,000 California, GO,
3.000% 10/21/99.................... 25,000
25,000 California, GO,
3.200% 10/21/99.................... 25,000
15,100 California, GO,
3.150% 04/01/04**(++).............. 15,100
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$10,000 California, GO,
3.800% 02/01/06**#................. $ 10,000
25,420 Castaic Lake, California, Water
Agency, Certificates of
Participation, (Water Systems
Improvement Project) Series 1990,
7.350% 08/01/00.................... 26,710
3,000 Chula Vista, California, IDR, (San
Diego Gas & Electric Company
Project) Series 1992C, AMT,
3.400% 01/20/00.................... 3,000
11,000 Chula Vista, California, IDR, (San
Diego Gas and Electric Company
Project) Series 1992B, AMT,
3.400% 12/01/27**.................. 11,000
13,000 City of Long Beach, California, GO,
3.800% 05/15/15**#................. 13,000
7,500 Contra Costa County, California,
Multi-Family Housing Revenue, (Park
Regency Project) Series 1992A,
(State Street Bank and Trust LOC),
3.350% 08/01/32**.................. 7,500
8,230 Contra Costa County, California,
Multi-Family Housing Revenue,
Series 1999,
3.820% 12/01/41**#................. 8,230
3,020 Duarte, California, Certificates of
Participation, (Hope National
Medical Center Project) Series
1993,
5.500% 04/01/00.................... 3,055
12,035 Eastern Municipal Water District,
California, Water and Sewer
Revenue, Certificates of
Participation, Series 1993B, (FGIC
Insured),
3.400% 07/01/20**.................. 12,035
9,790 Fremont, California, Multi-Family
Housing Revenue, (Mission Wells
Project) Series 1985E,
3.500% 09/01/14**.................. 9,790
17,000 Golden Empire Schools Financing
Authority, California, Lease
Revenue, (Kern High School District
Project) Series 1999, (Canadian
Imperial Bank of Commerce LOC),
3.100% 08/01/29.................... 17,000
17,800 Hayward, California, Multi-Family
Housing Revenue, (Shorewood
Project) Series 1984A, (FGIC
Insured),
3.400% 08/01/14**.................. 17,800
4,865 Indio, California, Multi-Family
Housing Revenue, (Western Federal
Savings Project) Series 1985,
(Wells Fargo and Company LOC),
3.550% 06/01/05**.................. 4,865
1,000 Local Government Finance Authority,
California, Revenue Refunding,
(Bunker Hill Project) Series 1989,
Prerefunded 12/01/99 @ 102, (AMBAC
Insured),
6.750% 12/01/99.................... 1,026
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$16,400 Long Beach, California, Harbor
Revenue, AMT,
3.050% 03/04/23.................... $ 16,400
3,500 Long Beach, California, Health
Facilities, Revenue, (Memorial
Health Services Project) Series
1991,
3.500% 10/01/16**.................. 3,500
9,995 Long Beach, California, Revenue,
Municipal Securities Trust
Receipts, Series 1998-CMC1,
3.600% 05/15/07**#................. 9,995
14,060 Los Angeles County, California,
Capital Asset Lease Corporation,
Revenue,
2.800% 10/08/99.................... 14,060
18,250 Los Angeles County, California,
Certificates of Participation,
(Schools Pooled Financing Program)
Series 1999A, (FSA Insured),
4.000% 06/30/00.................... 18,365
5,500 Los Angeles County, California,
Metropolitan Transportation
Authority, Revenue, Series
1996SGB-3, (FSA Insured),
3.620% 07/01/16**#................. 5,500
2,100 Los Angeles County, California,
Metropolitan Transportation
Authority, Sales Tax Revenue,
Series 1996-54,
3.520% 07/01/17**#................. 2,100
13,355 Los Angeles County, California,
Metropolitan Transportation
Authority, Sales Tax Revenue,
Series 1998CMC-2,
3.650% 07/01/11**#................. 13,355
7,500 Los Angeles County, California,
Transportation Commission, Sales
Tax Revenue,
3.150% 11/09/99.................... 7,500
2,105 Los Angeles County, California,
Transportation Commission, Sales
Tax Revenue, Series A,
2.900% 10/20/99.................... 2,105
20,000 Los Angeles, California, Community
Redevelopment Agency, Multi-Family
Housing Revenue, (Academy Village
Apartments Project) Series 1989A,
AMT, (UBS AG LOC),
3.500% 10/01/19**.................. 20,000
3,500 Los Angeles, California, Department
of Water and Power, Electric
Revenue, Tax Exempt Commerical
Paper,
3.100% 10/05/99.................... 3,500
4,000 Los Angeles, California, Department
of Water and Power, Tax Exempt
Commercial Paper, (Bayerische
Landesbank LOC),
2.900% 10/20/99.................... 4,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$10,000 Los Angeles, California, Department
of Water and Power, Tax Exempt
Commercial Paper, (Electric Plant
Project),
3.000% 10/13/99.................... $ 10,000
39,500 Los Angeles, California, Department
of Water and Power, Tax Exempt
Commercial Paper, (Electric Plant
Project),
3.200% 10/13/99.................... 39,500
15,000 Los Angeles, California, Department
of Water and Power, Tax Exempt
Commercial Paper, (Electric Plant
Project),
2.950% 11/18/99.................... 15,000
8,000 Los Angeles, California, GO TRAN,
Series 1999,
4.000% 06/30/00.................... 8,039
20,000 Los Angeles, California, GO TRAN,
Series 1999,
4.000% 06/30/00.................... 20,094
2,000 Los Angeles, California, Industrial
Development Authority, IDR, (Delta
Tau Data Systems, Inc. Project)
Series 1998, AMT,
3.500% 08/01/23**.................. 2,000
17,700 Los Angeles, California, Multi-Family
Housing Revenue, (Fountain Park
Project) Series 1999P, AMT,
3.350% 04/15/33**.................. 17,700
20,000 Los Angeles, California, Unified
School District, Certificates of
Participation, (Belmont Learning
Complex Project) Series 1997A,
(Commerzbank A.G. LOC),
3.200% 12/01/17**.................. 20,000
2,000 Los Angeles, California, Wastewater
Systems Revenue, Series 1990B,
Prerefunded 06/01/00 @ 102,
7.150% 06/01/00.................... 2,092
3,100 M-S-R Public Power Agency,
California, Revenue, (San Juan
Project) Series 1998F, (MBIA
Insured),
3.600% 07/01/22**.................. 3,100
30,000 Metropolitan Water District of
Southern California, Waterworks
Revenue Refunding, Series 1996A,
(AMBAC Insured),
3.400% 06/01/23**.................. 30,000
8,300 Metropolitan Water District of
Southern California, Waterworks
Revenue,
3.300% 02/08/00.................... 8,300
5,000 Metropolitan Water District of
Southern California, Waterworks
Revenue,
3.300% 02/11/00.................... 5,000
4,750 Metropolitan Water District of
Southern California, Waterworks
Revenue, Series 1999,
3.520% 07/01/27**#................. 4,750
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 6,500 Monterey County, California,
Financing Authority, Revenue,
(Reclamation and Distribution
Projects) Series 1995, (Credit
Local de France LOC),
3.450% 09/01/36**.................. $6,500
16,500 Mountain View, California,
Multi-Family Housing Revenue,
(Mariposa Project) Series 1985A,
(FGIC Insured),
3.400% 03/01/17**.................. 16,500
5,000 Oakland, California, Unified School
District of Alameda County, GO
TRAN, Series 1998,
3.250% 11/09/99.................... 5,002
14,145 Orange County, California, Apartment
Development Revenue Refunding,
(Aliso Creek Project) Series 1992B,
3.400% 11/01/05**.................. 14,145
19,500 Orange County, California, Apartment
Development Revenue, (Bear Brand
Apartments Project) Series 1985Z,
(KBC Bank N.V. LOC),
3.250% 11/01/07**.................. 19,500
21,400 Orange County, California, Apartment
Development Revenue, (Pointe Niguel
Partners Project) Series 1992C,
(Freddie Mac LOC),
3.400% 11/01/05**.................. 21,400
20,000 Orange County, California, Housing
Authority, Apartment Development
Revenue Refunding, (Oasis
Martinique Project) Series 1998I,
(FNMA Collateral Agreement),
3.450% 06/15/28**.................. 20,000
25,200 Orange County, California, Sanitation
Districts, Certificates of
Participation Refunding, (District
Nos. 1-3, 5-7 and 11 Projects)
Series 1992, (AMBAC Insured),
3.400% 08/01/13**.................. 25,200
14,700 Orange County, California, Sanitation
Districts, Certificates of
Participation, (District Nos. 1-3,
5-7, 11,13 and 14 Projects) Series
1990, (National Westminster LOC),
3.500% 08/01/15**.................. 14,700
3,000 Orange County, California, Special
Assesment Improvement Bond,
(Assessment District No. 88
Project) Series 1988-1, (Societe
Generale LOC),
3.700% 08/01/17**.................. 3,000
2,600 Orange County, California, Special
Financing Authority, Revenue,
Series 1995C, (AMBAC Insured),
6.150% 11/01/14.................... 2,607
$ 1,250 Paramount, California, Unified School
District, Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997,
3.500% 09/01/08**.................. $ 1,250
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 1,925 Paramount, California, Unified School
District, Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997,
3.500% 09/01/15**.................. $ 1,925
1,940 Paramount, California, Unified School
District, Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997,
3.500% 09/01/27**.................. 1,940
7,800 Pico Rivera, California,
Redevelopment Agency, Certificates
of Participation, (Crossroads Plaza
Project) Series 1985, (Wachovia
Bank of Georgia LOC),
3.300% 12/01/10**.................. 7,800
455 Pomona, California, Public Financing
Authority, Revenue, (Water
Facilities Project) Series 1999AA,
(FSA Insured),
3.500% 05/01/00.................... 456
4,200 Rancho, California, Water District
Financing Authority, Revenue,
Series 1998A, (FGIC Insured),
3.400% 08/15/29**.................. 4,200
1,500 Riverside County, California,
Certificates of Participation,
(Riverside County Public Facilities
Project) Series 1985B,
3.250% 12/01/15**.................. 1,500
9,400 Riverside County, California,
Community Facilities District,
Special Tax Revenue Refunding,
Series 1997, (KBC Bank N.V. LOC),
3.450% 09/01/14**.................. 9,400
2,110 Riverside County, California,
Industrial Development Authority,
IDR, (Merrick Engineering, Inc.
Project) Series 1997, AMT, (Wells
Fargo Bank N.A. LOC),
3.750% 03/01/27**.................. 2,110
8,000 Riverside County, California, Special
Tax Refunding, (Community
Facilities District No. 89 Project)
Series 1998-5, (AMBAC Insured),
3.500% 09/01/28**.................. 8,000
1,325 Riverside County, California, Teeter
Obligation Notes,
3.100% 11/17/99.................... 1,325
6,800 Riverside, California, Electric
Revenue, Series 1998, (AMBAC
Insured),
3.650% 10/01/11**#................. 6,800
10,650 Roseville, California, Finance
Authority, Hospital Lease Revenue,
(Roseville Community Hospital
Project) Series 1989A, (Toronto
Dominion Bank LOC),
3.450% 10/01/14**.................. 10,650
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 4,500 Sacramento County, California,
Housing Authority, Multi-Family
Housing Revenue, (California Plac
Apartments Project) Series 1997B,
AMT, (Bank One Arizona, N.A. LOC),
3.450% 05/01/27**.................. $ 4,500
5,100 Sacramento County, California, Multi-
Family Housing Revenue, Series
1985B, (Bank One Arizona, N.A.
LOC),
3.400% 04/15/07**.................. 5,100
7,000 Sacramento Municipal Utilities
District, California, Series 1,
3.050% 10/21/99.................... 7,000
16,000 Sacramento Municipal Utilities
District, California, Series 1,
3.350% 01/20/00.................... 16,000
10,000 Sacramento Municipal Utilities
District, California, Series 1,
3.350% 01/26/00.................... 10,000
4,713 Sacramento Municipal Utilities
District, California, Series 1,
3.250% 03/07/00.................... 4,713
1,500 Sacramento Municipal Utilities
District, California, Series 1,
3.200% 03/10/00.................... 1,500
1,600 San Bernardino County, California,
Certificates of Participation,
(County Center Refining Project)
Series 1996, (Canadian Imperial
Bank of Commerce LOC),
3.250% 07/01/15**.................. 1,600
2,500 San Bernardino County, California,
Certificates of Participation,
Series 1995, Prerefunded 08/01/05 @
102,
3.520% 08/01/28**#................. 2,500
15,000 San Bernardino County, California,
GO, TRAN, Series 1999,
3.750% 09/29/00.................... 15,054
8,000 San Diego County, California, GO,
TRAN, Series 1999,
5.000% 09/29/00.................... 8,125
5,200 San Diego County, California,
Industrial Development Authority,
(San Diego Gas & Electric Company
Project) Series A,
3.350% 01/20/00.................... 5,200
13,885 San Diego, California, Area Local
Government, Certificates of
Participation TRAN, Series 1999A,
4.000% 06/30/00.................... 13,967
5,000 San Diego, California, GO,
3.350% 01/20/00.................... 5,000
5,000 San Diego, California, GO, TAN,
Series 1999A,
4.250% 09/29/00.................... 5,042
10,000 San Diego, California, Housing
Authority, Multi-Family Housing
Revenue, (La Cima Ltd. Project)
Series 1985K,
3.400% 12/01/22**.................. 10,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 2,200 San Diego, California, Unified School
District, GO TRAN, Series 1998A,
4.500% 10/01/99.................... $ 2,200
1,000 San Francisco, California, Bay Area
Rapid Transit Authority, Series A,
3.350% 01/26/00.................... 1,000
3,500 San Francisco, California, Bay Area
Rapid Transit Authority, Series A,
3.300% 02/10/00.................... 3,500
5,500 San Francisco, California, Bay Area
Rapid Transit Authority, Series B,
2.800% 10/08/99.................... 5,500
14,300 San Francisco, California, City and
County Airport Commission,
International Airport Revenue,
Municipal Trust Receipts, Series
1997SGA-50, AMT, (MBIA Insured),
3.470% 05/01/16**#................. 14,300
5,345 San Francisco, California, City and
County Airport Commission,
International Airport Revenue,
Series 1996,
3.520% 05/01/21**#................. 5,345
9,775 San Francisco, California, City and
County Airport Commission,
International Airport Revenue,
Series 1997,
3.520% 05/01/20**#................. 9,775
4,000 San Francisco, California, City and
County Public Utilities Commission,
3.000% 11/10/99.................... 4,000
3,500 San Francisco, California, City and
County Redevelopment Agency,
Multi-Family Housing Revenue
Refunding, (Fillmore Center
Project) Series 1992B-1, (Credit
Suisse First Boston LOC),
3.100% 12/01/17**.................. 3,500
17,200 San Francisco, California, City and
County Redevelopment Agency,
Multi-Family Housing Revenue, (3rd
and Mission Street Project) Series
1999C, (Bayerische Hypo-Und
Vereinsbank LOC),
3.450% 07/01/34**.................. 17,200
6,015 Santa Ana, California, Health
Facilities Revenue, (Town and
Country Project) Series 1990,
(Banque Nationale de Paris LOC),
3.700% 10/01/20**.................. 6,015
12,000 Santa Clara County, California, TRAN,
Series 1998,
4.500% 10/01/99.................... 12,000
16,900 Santa Clara, California, Electric
Revenue, Series 1985A,
3.300% 07/01/10**.................. 16,900
55,000 South Coast, California, Local
Education Agencies, GO TRAN, Series
1999, (MBIA Insured),
4.000% 06/30/00.................... 55,270
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$11,819 Southeast California, Resource
Recovery Facilities Authority,
Lease Revenue Refunding, Series
1995B, AMT, (State Street Bank and
Trust LOC),
3.350% 12/01/18**.................. $ 11,819
1,900 Southern California Public Power
Authority, Transmission Revenue,
(Southern Transmission Project)
Series 1991, (AMBAC Insured,
Barclays Bank plc LOC),
3.200% 07/01/19**.................. 1,900
4,030 Southern Kern, California, Unified
School District, Certificates of
Participation, (Building Program)
Series 1998A, (FSA Insured),
3.450% 09/01/26**.................. 4,030
11,300 University of California, Revenue,
Series 1998PT-1057,
3.520% 09/01/19**#................. 11,300
3,700 University of California, Revenue,
Series 1999,
3.520% 09/01/16**#................. 3,700
25,000 Ventura County, California, GO TRAN,
Series 1999,
4.000% 07/06/00.................... 25,148
29,400 Wateruse Finance Authority,
California, Revenue, Series 1998,
(FSA Insured),
3.600% 05/01/28**.................. 29,399
----------
1,609,619
----------
PUERTO RICO -- 3.5%
10,995 Puerto Rico Commonwealth,
Infrastructure Financing Authority,
Special Municipal Security Trust
Receipts,
Series 1998-CMC3,
3.600% 07/01/12**#................. 10,995
13,900 Puerto Rico Electric Power Authority,
Power Revenue, Municipal Security
Trust Receipts, Series 1997-SGA43,
(Societe Generale LOC),
3.450% 07/01/22**#................. 13,900
4,200 Puerto Rico Electric Power Authority,
Power Revenue, Municipal Security
Trust Receipts, Series 1997-SGA44,
(Societe Generale LOC),
3.450% 07/01/23**#................. 4,200
10,000 Puerto Rico, Government Development
Bond,
3.250% 01/20/00.................... 10,000
20,000 Puerto Rico, Government Development
Bond,
3.250% 01/26/00.................... 20,000
----------
59,095
----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $1,668,714).................. 1,668,714
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
- -----------------------------------------------------------
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $1,668,714*)........... 99.0% $1,668,714
----------
OTHER ASSETS AND LIABILITIES
(NET)..........................1.0%
Cash................................. $ 130
Receivable for investment securities
sold............................... 24,025
Receivable for Fund shares sold...... 13,525
Interest receivable.................. 9,933
Payable for Fund shares redeemed..... (3,764)
Investment advisory fee payable...... (103)
Administration fee payable........... (29)
Shareholder servicing and
distribution fees payable.......... (624)
Dividends payable.................... (3,682)
Payable for investment securities
purchased.......................... (22,100)
Accrued Trustees' fees and
expenses........................... (2)
Accrued expenses and other
liabilities........................ (137)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).............................. 17,172
----------
NET ASSETS.................... 100.0% $1,685,886
==========
NET ASSETS CONSIST OF:
Undistributed net investment
income............................. $ 61
Accumulated net realized loss on
investments sold................... (57)
Paid-in capital...................... 1,685,882
----------
NET ASSETS........................... $1,685,886
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
ADVISER CLASS SHARES:
($383,147,140 / 383,185,968 shares
outstanding)....................... $1.00
====
DAILY CLASS SHARES:
($599,817,348 / 599,817,932 shares
outstanding)....................... $1.00
====
INVESTOR CLASS SHARES:
($344,509,638 / 344,529,561 shares
outstanding)....................... $1.00
====
TRUST CLASS SHARES:
($358,411,437 / 358,410,834 shares
outstanding)....................... $1.00
====
</TABLE>
- ---------------
* Aggregate cost for Federal income tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 1999. These securities are subject to demand features
of either one, seven or thirty days.
(++) Restricted Security (Note 5).
# Securities are not registered under the Securities Act of 1933, as amended.
These securities may be resold in transactions exempt from registration to
qualified institutional buyers.
Nations California Tax-Exempt Reserves Fund had the following industry
concentrations greater than 10% at September 30, 1999 (as a percentage of net
assets):
Multi-Family Housing Revenue 13.7%
Pollution Control Revenue 13.4%
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance
Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CFC Cooperative Finance Corporation
FGIC Financial Guaranty Insurance
Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GO General Obligation
GTD STD LNS Guaranteed Student Loans
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
SBPA Standby Bond Purchase Agreement
SLMA Student Loan Marketing Association
TRAN Tax and Revenue Anticipation Note
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 1999
<TABLE>
CASH MONEY MARKET
RESERVES RESERVES
-------------------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 558,467 $ 41,496
------------------- -------------------
EXPENSES:
Investment advisory fee..................................... 17,835 1,491
Administration fee.......................................... 10,740 802
Transfer agent fees......................................... 89 7
Custodian fees.............................................. 670 52
Trustees' fees and expenses................................. 12 12
Registration and filing fees................................ 713 101
Legal and audit fees........................................ 132 32
Interest expense............................................ 80 11
Other....................................................... 131 65
------------------- -------------------
Subtotal................................................ 30,402 2,573
Shareholder servicing and distribution fees:
Liquidity Class Shares.................................... 7,304 32
Adviser Class Shares...................................... 4,012 15
Market Class Shares....................................... 4,255 1,896
Daily Class Shares........................................ 12,972 5
Investor Class Shares..................................... 3,677 --
Trust Class Shares........................................ 647 --
Service Class Shares...................................... 1,107 12
Special management fees (Investor Shares)................... -- --
------------------- -------------------
Total expenses.......................................... 64,376 4,533
Fees waived by investment advisor, administrator and/or
distributor............................................... (14,869) (990)
Fees reduced by credits allowed by the custodian............ (18) (2)
------------------- -------------------
Net expenses............................................ 49,489 3,541
------------------- -------------------
NET INVESTMENT INCOME....................................... 508,978 37,955
------------------- -------------------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS..................... 3 2
------------------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 508,981 $ 37,957
=================== ===================
</TABLE>
- ---------------
(a) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax-
Exempt Reserves on May 14, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
CALIFORNIA TAX-EXEMPT RESERVES
-----------------------------------------
FOR THE PERIOD
MAY 15, 1999 TO FOR THE PERIOD
TREASURY GOVERNMENT MUNICIPAL SEPTEMBER 30, 1999 MARCH 1, 1999 TO
RESERVES RESERVES RESERVES (UNAUDITED) MAY 14, 1999(a)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 129,024 $ 34,461 $ 18,655 $ 19,069 $ 9,732
------------------- ------------------- ------------------- ------------------- -------------------
4,382 1,180 925 946 324
2,586 690 568 645 324
21 6 4 6 --
164 60 38 43 63
12 12 12 10 17
141 68 116 13 49
50 31 29 25 19
3 2 -- -- --
106 64 71 181 83
------------------- ------------------- ------------------- ------------------- -------------------
7,465 2,113 1,763 1,869 879
1,142 269 470 -- --
1,580 395 106 342 348
2,950 786 344 -- --
1,343 206 477 1,063 717
362 312 143 565 --
228 55 194 129 --
457 4 -- -- --
-- -- -- -- 385
------------------- ------------------- ------------------- ------------------- -------------------
15,527 4,140 3,497 3,968 2,329
(3,231) (941) (1,011) (381) (385)
(1) (11) -- -- --
------------------- ------------------- ------------------- ------------------- -------------------
12,295 3,188 2,486 3,587 1,944
------------------- ------------------- ------------------- ------------------- -------------------
116,729 31,273 16,169 15,482 7,788
------------------- ------------------- ------------------- ------------------- -------------------
2 -- -- 3 --
------------------- ------------------- ------------------- ------------------- -------------------
$ 116,731 $ 31,273 $ 16,169 $ 15,485 $ 7,788
=================== =================== =================== =================== ===================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
CASH RESERVES
---------------------------------------------------------
SIX MONTHS
ENDED
9/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 3/31/99(a) 4/30/98
---------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income...................................... $ 508,978 $ 342,035 $ 204,354
Net realized gain/(loss) on investments.................... 3 (17) 30
-------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations............................................... 508,981 342,018 204,384
Distributions to shareholders from net investment income:
Capital Class Shares..................................... (167,979) (192,707) (122,110)
Liquidity Class Shares................................... (41,493) (62,927) (29,597)
Adviser Class Shares..................................... (76,056) (35,908) (27,433)
Market Class Shares...................................... (42,835) (50,493) (25,214)
Daily Class Shares....................................... (95,919) -- --
Investor Class Shares.................................... (48,612) -- --
Trust Class Shares....................................... (31,644) -- --
Service Class Shares..................................... (4,440) -- --
Net increase/(decrease) in net assets from shares of
beneficial interest transactions......................... 19,806,952 2,678,152 2,796,684
-------------- -------------- --------------
Net increase/(decrease) in net assets...................... 19,806,955 2,678,135 2,796,714
NET ASSETS:
Beginning of period........................................ 8,159,483 5,481,348 2,684,634
-------------- -------------- --------------
End of period.............................................. $ 27,966,438 $ 8,159,483 $ 5,481,348
============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of period........ $ 27 $ 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.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
MONEY MARKET RESERVES TREASURY RESERVES
------------------------------------------------ ------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/99 PERIOD ENDED PERIOD ENDED 9/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 3/31/99(b) 5/15/98(c) (UNAUDITED) 3/31/99(a) 4/30/98
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 37,955 $ 32,383 $ 3,563 $ 116,729 $ 89,136 $ 49,848
2 1 -- 2 (2) --
-------------- -------------- -------------- -------------- -------------- --------------
37,957 32,384 3,563 116,731 89,134 49,848
(18,424) (11,499) (3,563) (27,552) (23,600) (13,736)
(185) (38) -- (5,862) (16,510) (13,290)
(292) (220) -- (28,642) (13,783) (12,530)
(18,964) (20,626) -- (28,272) (35,243) (10,292)
(41) -- -- (9,410) -- --
-- -- -- (4,567) -- --
-- -- -- (10,687) -- --
(50) -- -- (1,738) -- --
458,189 1,358,049 (59,028) 3,081,581 1,724,192 649,521
-------------- -------------- -------------- -------------- -------------- --------------
458,190 1,358,050 (59,028) 3,081,582 1,724,190 649,521
1,476,930 118,880 177,908 3,201,913 1,477,723 828,202
-------------- -------------- -------------- -------------- -------------- --------------
$ 1,935,120 $ 1,476,930 $ 118,880 $ 6,283,495 $ 3,201,913 $ 1,477,723
============== ============== ============== ============== ============== ==============
$ 4 $ 4 $ 4 $ -- $ -- $ --
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT RESERVES
-------------------------------------------------------------
SIX MONTHS
ENDED
9/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 3/31/99(a) 4/30/98
-------------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income...................................... $ 31,273 $ 27,860 $ 24,685
Net realized gain/(loss) on investments.................... -- 2 --
-------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations............................................... 31,273 27,862 24,685
Distributions to shareholders from net investment income:
Capital Class Shares..................................... (7,083) (8,013) (9,042)
Liquidity Class Shares................................... (1,460) (2,138) (1,783)
Adviser Class Shares..................................... (7,196) (4,419) (2,427)
Market Class Shares...................................... (7,556) (13,290) (11,433)
Daily Class Shares....................................... (1,493) -- --
Investor Class Shares.................................... (3,896) -- --
Trust Class Shares....................................... (2,573) -- --
Service Class Shares..................................... (16) -- --
Net increase/(decrease) in net assets from shares of
beneficial interest transactions......................... 1,120,387 143,903 192,840
-------------- -------------- --------------
Net increase/(decrease) in net assets...................... 1,120,387 143,905 192,840
NET ASSETS:
Beginning of period........................................ 711,948 568,043 375,203
-------------- -------------- --------------
End of period.............................................. $ 1,832,335 $ 711,948 $ 568,043
============== ============== ==============
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.
(b) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California
Tax-Exempt Reserves on May 14, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL RESERVES
------------------------------------------------ CALIFORNIA TAX-EXEMPT RESERVES
SIX MONTHS ------------------------------------------------
ENDED PERIOD ENDED
9/30/99 PERIOD ENDED YEAR ENDED 9/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 3/31/99(a) 4/30/98 (UNAUDITED) 5/14/99(b) 2/28/99(b)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 16,169 $ 9,267 $ 8,161 $ 15,482 $ 7,788 $ 39,877
-- (1) -- 3 -- (3)
-------------- -------------- -------------- -------------- -------------- --------------
16,169 9,266 8,161 15,485 7,788 39,874
(2,496) (3,033) (2,352) -- -- --
(1,624) (1,555) (1,798) -- -- --
(1,209) (1,437) (948) (4,052) (3,459) (18,045)
(2,023) (3,242) (3,063) -- -- --
(1,978) -- -- (4,033) (1,658) (6,658)
(1,112) -- -- (3,928) (2,671) (15,175)
(5,727) -- -- (3,469) -- --
-- -- -- -- -- --
1,009,826 155,836 49,287 213,624 (112,293) 142,918
-------------- -------------- -------------- -------------- -------------- --------------
1,009,826 155,835 49,287 213,627 (112,293) 142,914
405,095 249,260 199,973 1,472,259 1,584,552 1,441,638
-------------- -------------- -------------- -------------- -------------- --------------
$ 1,414,921 $ 405,095 $ 249,260 $ 1,685,886 $ 1,472,259 $ 1,584,552
============== ============== ============== ============== ============== ==============
$ -- $ -- $ -- $ 61 $ 61 $ 61
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 46
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended September 30, 1999
<TABLE>
<CAPTION>
TREASURY RESERVES
(000)
----------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES:
Investment income received................................ $ 117,190
Payment of operating expenses............................. (10,046)
Net proceeds from reverse repurchase agreements
outstanding............................................... 718,178
Net purchases of short-term investments................... (4,729,006)
------------
Cash used by operating and investing activities............. $(3,903,684)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Fund shares sold............................ 30,176,117
Payment on shares redeemed................................ (26,218,974)
Distributions paid*....................................... (53,531)
Interest expense.......................................... (3)
------------
Cash provided by financing activities....................... 3,903,609
-----------
Decrease in cash.......................................... $ (75)
Cash at beginning of period............................... (10)
-----------
Cash at end of period..................................... $ (85)
===========
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from operations........ $ 116,731
Increase in investments................................... $ (4,438,146)
Increase in payable for reverse repurchase agreement
transactions.............................................. 718,178
Increase in interest and dividends receivable............. (16,879)
Increase in receivable for investments sold............... (4,891,279)
Increase in payable for investments sold.................. 4,605,462
Decrease in other assets.................................. 112
Increase in accrued expenses and other payables........... 2,137
------------
Cash used by operating and investing activities............. $(3,903,684)
===========
</TABLE>
- ---------------
* Non-cash activities include reinvestment of dividends of $46,995.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY*
<TABLE>
<CAPTION>
CASH RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MARCH 31, 1999(a) APRIL 30, 1998
------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold...................................................... $ 51,567,492 $ 41,082,851 $ 27,029,347
Issued in exchange for Horizon Shares of Pacific Horizon
Prime Fund (Note 8)..................................... 3,443,782 -- --
Issued as reinvestment of dividends....................... 68,256 76,006 64,512
Redeemed.................................................. (51,096,311) (39,830,977) (25,726,549)
------------ ------------ ------------
Net increase/(decrease)................................... $ 3,983,219 $ 1,327,880 $ 1,367,310
============ ============ ============
LIQUIDITY CLASS SHARES:
Sold...................................................... $ 7,055,207 $ 9,418,989 $ 8,183,907
Issued as reinvestment of dividends....................... 20,742 42,070 18,291
Redeemed.................................................. (7,014,135) (9,145,542) (7,514,186)
------------ ------------ ------------
Net increase/(decrease)................................... $ 61,814 $ 315,517 $ 688,012
============ ============ ============
ADVISER CLASS SHARES:
Sold...................................................... $ 23,370,584 $ 4,388,779 $ 3,993,186
Issued in exchange for Horizon Service Shares of Pacific
Horizon Prime Fund (Note 8)............................. 3,971,137 -- --
Issued as reinvestment of dividends....................... 48,443 32,287 20,314
Redeemed.................................................. (24,306,766) (4,223,311) (3,588,638)
------------ ------------ ------------
Net increase/(decrease)................................... $ 3,083,398 $ 197,755 $ 424,862
============ ============ ============
MARKET CLASS SHARES:
Sold...................................................... $ 2,099,000 $ 1,898,000 $ 1,504,300
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (1,375,500) (1,061,000) (1,187,800)
------------ ------------ ------------
Net increase/(decrease)................................... $ 723,500 $ 837,000 $ 316,500
============ ============ ============
DAILY CLASS SHARES:
Sold...................................................... $ 27,532,172 $ -- $ --
Issued in exchange for S Shares of Pacific Horizon Prime
Fund (Note 8)........................................... 1,587,435 -- --
Issued in exchange for X Shares of Pacific Horizon Prime
Fund (Note 8)........................................... 2,180,033 -- --
Issued as reinvestment of dividends....................... 65,456 -- --
Redeemed.................................................. (24,187,828) -- --
------------ ------------ ------------
Net increase/(decrease)................................... $ 7,177,268 $ -- $ --
============ ============ ============
INVESTOR CLASS SHARES:
Sold...................................................... $ 6,358,596 $ -- $ --
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Prime Fund (Note 8)............................. 2,543,535 -- --
Issued as reinvestment of dividends....................... 34,074 -- --
Redeemed.................................................. (6,069,680) -- --
------------ ------------ ------------
Net increase/(decrease)................................... $ 2,866,525 $ -- $ --
============ ============ ============
TRUST CLASS SHARES:
Sold...................................................... $ 4,865,666 $ -- $ --
Issued as reinvestment of dividends....................... 39 -- --
Redeemed.................................................. (3,269,345) -- --
------------ ------------ ------------
Net increase/(decrease)................................... $ 1,596,360 $ -- $ --
============ ============ ============
SERVICE CLASS SHARES:
Sold...................................................... $ 3,118,402 $ -- $ --
Issued in exchange for Y Shares of Pacific Horizon Prime
Fund (Note 8)........................................... 237,185 -- --
Issued as reinvestment of dividends....................... 2,455 -- --
Redeemed.................................................. (3,043,174) -- --
------------ ------------ ------------
Net increase/(decrease)................................... $ 314,868 $ -- $ --
============ ============ ============
Total net increase/(decrease)............................. $ 19,806,952 $ 2,678,152 $ 2,796,684
============ ============ ============
</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. The numbers reflected are for the period May 1, 1998 through
March 31, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
MONEY MARKET RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 1999 PERIOD ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 1999(a) MAY 15, 1998(b)
---------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold...................................................... $ 3,427,333 $ 2,271,169 $ 188,673
Issued as reinvestment of dividends....................... 11,396 5,977 --
Redeemed.................................................. (2,946,676) (1,800,552) (247,701)
----------- ----------- ---------
Net increase/(decrease)................................... $ 492,053 $ 476,594 $ (59,028)
=========== =========== =========
LIQUIDITY CLASS SHARES:
Sold...................................................... $ 93,415 $ 38,821 $ --
Issued as reinvestment of dividends....................... 113 32 --
Redeemed.................................................. (77,560) (37,775) --
----------- ----------- ---------
Net increase/(decrease)................................... $ 15,968 $ 1,078 $ --
=========== =========== =========
ADVISER CLASS SHARES:
Sold...................................................... $ 132,193 $ 83,156 $ --
Issued as reinvestment of dividends....................... 91 46 --
Redeemed.................................................. (104,398) (76,825) --
----------- ----------- ---------
Net increase/(decrease)................................... $ 27,886 $ 6,377 $ --
=========== =========== =========
MARKET CLASS SHARES:
Sold...................................................... $ 592,500 $ 1,771,500 $ --
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (680,500) (897,500) --
----------- ----------- ---------
Net increase/(decrease)................................... $ (88,000) $ 874,000 $ --
=========== =========== =========
DAILY CLASS SHARES:
Sold...................................................... $ 8,668 $ -- $ --
Issued as reinvestment of dividends....................... 21 -- --
Redeemed.................................................. (3,907) -- --
----------- ----------- ---------
Net increase/(decrease)................................... $ 4,782 $ -- $ --
=========== =========== =========
SERVICE CLASS SHARES:
Sold...................................................... $ 21,000 $ -- $ --
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (15,500) -- --
----------- ----------- ---------
Net increase/(decrease)................................... $ 5,500 $ -- $ --
=========== =========== =========
Total net increase/(decrease)............................. $ 458,189 $ 1,358,049 $ (59,028)
=========== =========== =========
</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
May 15. The numbers reflected are for the period May 16, 1998 through March
31, 1999.
(b) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
TREASURY RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MARCH 31, 1999(a) APRIL 30, 1998
--------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 4,328,446 $ 3,598,873 $ 1,816,628
Issued in exchange for Institutional Shares of Emerald
Treasury Advantage Fund (Note 8)......................... -- 144,375 --
Issued in exchange for Horizon Shares of Pacific Horizon
Treasury Fund (Note 8)................................... 513,598 -- --
Issued as reinvestment of dividends........................ 14,658 14,110 4,525
Redeemed................................................... (4,808,402) (2,620,829) (2,044,082)
------------ ----------- -----------
Net increase/(decrease).................................... $ 48,300 $ 1,136,529 $ (222,929)
============ =========== ===========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 837,711 $ 2,173,677 $ 2,905,975
Issued as reinvestment of dividends........................ 2,923 10,916 10,849
Redeemed................................................... (886,894) (2,623,599) (2,254,978)
------------ ----------- -----------
Net increase/(decrease).................................... $ (46,260) $ (439,006) $ 661,846
============ =========== ===========
ADVISER CLASS SHARES:
Sold....................................................... $ 10,645,128 $ 2,611,240 $ 2,542,456
Issued in exchange for Horizon Service Shares of Pacific
Horizon Treasury Fund (Note 8)........................... 1,727,418 -- --
Issued as reinvestment of dividends........................ 18,880 10,096 9,722
Redeemed................................................... (11,160,012) (2,499,169) (2,483,674)
------------ ----------- -----------
Net increase/(decrease).................................... $ 1,231,414 $ 122,167 $ 68,504
============ =========== ===========
MARKET CLASS SHARES:
Sold....................................................... $ 1,004,500 $ 1,773,805 $ 903,800
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (797,000) (869,303) (761,700)
------------ ----------- -----------
Net increase/(decrease).................................... $ 207,500 $ 904,502 $ 142,100
============ =========== ===========
DAILY CLASS SHARES:
Sold....................................................... $ 5,791,912 $ -- $ --
Issued in exchange for X Shares of Pacific Horizon Treasury
Fund (Note 8)............................................ 503,310 -- --
Issued as reinvestment of dividends........................ 7,347 -- --
Redeemed................................................... (5,654,685) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 647,884 $ -- $ --
============ =========== ===========
INVESTOR CLASS SHARES:
Sold....................................................... $ 793,688 $ -- $ --
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Treasury Fund (Note 8)........................... 293,535 -- --
Issued as reinvestment of dividends........................ 2,220 -- --
Redeemed................................................... (773,121) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 316,322 $ -- $ --
============ =========== ===========
TRUST CLASS SHARES:
Sold....................................................... $ 2,290,131 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (1,747,007) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 543,124 $ -- $ --
============ =========== ===========
SERVICE CLASS SHARES:
Sold....................................................... $ 1,029,751 $ -- $ --
Issued in exchange for Y Shares of Pacific Horizon Treasury
Fund (Note 8)............................................ 106,210 -- --
Issued as reinvestment of dividends........................ 967 -- --
Redeemed................................................... (1,003,631) -- --
------------ ----------- -----------
Net increase/(decrease).................................... $ 133,297 $ -- $ --
============ =========== ===========
Total net increase/(decrease).............................. $ 3,081,581 $ 1,724,192 $ 649,521
============ =========== ===========
</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. The numbers reflected are for the period May 1, 1998 to March 31,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MARCH 31, 1999(a) APRIL 30, 1998
--------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 759,857 $ 1,223,748 $ 1,207,038
Issued in exchange for Institutional Shares of Emerald
Treasury Advantage Fund (Note 8)......................... -- -- --
Issued in exchange for Horizon Shares of: (Note 8)
Pacific Horizon Government Fund.......................... 143,953 -- --
Pacific Horizon Treasury Only Fund....................... 22,370 -- --
Issued as reinvestment of dividends........................ 5,001 6,798 6,640
Redeemed................................................... (537,934) (1,191,593) (1,148,448)
---------- ----------- -----------
Net increase/(decrease).................................... $ 393,247 $ 38,953 $ 65,230
========== =========== ===========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 243,524 $ 745,526 $ 655,655
Issued as reinvestment of dividends........................ 1,207 2,006 1,718
Redeemed................................................... (259,626) (720,754) (631,082)
---------- ----------- -----------
Net increase/(decrease).................................... $ (14,895) $ 26,778 $ 26,291
========== =========== ===========
ADVISER CLASS SHARES:
Sold....................................................... $ 791,691 $ 747,826 $ 392,891
Issued in exchange for Horizon Service Shares of: (Note 8)
Pacific Horizon Government Fund.......................... 182,672 -- --
Pacific Horizon Treasury Only Fund....................... 277,586 -- --
Issued as reinvestment of dividends........................ 5,735 3,471 1,934
Redeemed................................................... (944,094) (732,625) (349,506)
---------- ----------- -----------
Net increase/(decrease).................................... $ 313,590 $ 18,672 $ 45,319
========== =========== ===========
MARKET CLASS SHARES:
Sold....................................................... $ 411,000 $ 542,300 $ 799,150
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (384,500) (482,800) (743,150)
---------- ----------- -----------
Net increase/(decrease).................................... $ 26,500 $ 59,500 $ 56,000
========== =========== ===========
DAILY CLASS SHARES:
Sold....................................................... $ 252,750 $ -- $ --
Issued as reinvestment of dividends........................ 874 -- --
Redeemed................................................... (87,952) -- --
---------- ----------- -----------
Net increase/(decrease).................................... $ 165,672 $ -- $ --
========== =========== ===========
INVESTOR CLASS SHARES:
Sold....................................................... $ 519,818 $ -- $ --
Issued in exchange for Pacific Horizon Shares of: (Note 8)
Pacific Horizon Government Fund.......................... 145,185 -- --
Pacific Horizon Treasury Only Fund....................... 123,908 -- --
Issued as reinvestment of dividends........................ 3,106 -- --
Redeemed................................................... (679,137) -- --
---------- ----------- -----------
Net increase/(decrease).................................... $ 112,880 $ -- $ --
========== =========== ===========
TRUST CLASS SHARES:
Sold....................................................... $ 464,030 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (342,637) -- --
---------- ----------- -----------
Net increase/(decrease).................................... $ 121,393 $ -- $ --
========== =========== ===========
SERVICE CLASS SHARES:
Sold....................................................... $ 7,000 $ -- $ --
Issued as reinvestment of dividends........................ -- -- --
Redeemed................................................... (5,000) -- --
---------- ----------- -----------
Net increase/(decrease).................................... $ 2,000 $ -- $ --
========== =========== ===========
Total net increase/(decrease).............................. $1,120,387 $ 143,903 $ 192,840
========== =========== ===========
</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. The numbers reflected are for the period May 1, 1998 to March 31,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MARCH 31, 1999(a) APRIL 30, 1998
---------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold...................................................... $ 460,570 $ 342,200 $ 344,665
Issued in exchange for Horizon Shares of Pacific Horizon
Tax Exempt Fund (Note 8)................................ 328,296 -- --
Issued as reinvestment of dividends....................... 714 853 195
Redeemed.................................................. (805,628) (283,035) (330,310)
---------- --------- ---------
Net increase/(decrease)................................... $ (16,048) $ 60,018 $ 14,550
========== ========= =========
LIQUIDITY CLASS SHARES:
Sold...................................................... $ 259,406 $ 341,064 $ 702,167
Issued as reinvestment of dividends....................... 1,227 1,447 1,606
Redeemed.................................................. (189,014) (327,192) (705,376)
---------- --------- ---------
Net increase/(decrease)................................... $ 71,619 $ 15,319 $ (1,603)
========== ========= =========
ADVISER CLASS SHARES:
Sold...................................................... $ 196,235 $ 397,229 $ 275,459
Issued in exchange for Horizon Service Shares of Pacific
Horizon Tax Exempt Fund (Note 8)........................ 217,928 -- --
Issued as reinvestment of dividends....................... 947 1,302 875
Redeemed.................................................. (371,762) (373,032) (253,694)
---------- --------- ---------
Net increase/(decrease)................................... $ 43,348 $ 25,499 $ 22,640
========== ========= =========
MARKET CLASS SHARES:
Sold...................................................... $ 210,500 $ 246,570 $ 326,000
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (197,500) (191,570) (312,300)
---------- --------- ---------
Net increase/(decrease)................................... $ 13,000 $ 55,000 $ 13,700
========== ========= =========
DAILY CLASS SHARES:
Sold...................................................... $ 469,584 $ -- $ --
Issued in exchange for S Shares of Pacific Horizon Tax
Exempt Fund (Note 8).................................... 57,381 -- --
Issued as reinvestment of dividends....................... 1,236 -- --
Redeemed.................................................. (187,621) -- --
---------- --------- ---------
Net increase/(decrease)................................... $ 340,580 $ -- $ --
========== ========= =========
INVESTOR CLASS SHARES:
Sold...................................................... $ 232,678 $ -- $ --
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Tax Exempt Fund (Note 8)........................ 150,443 -- --
Issued as reinvestment of dividends....................... 930 -- --
Redeemed.................................................. (322,323) -- --
---------- --------- ---------
Net increase/(decrease)................................... $ 61,728 $ -- $ --
========== ========= =========
TRUST CLASS SHARES:
Sold...................................................... $1,447,320 $ -- $ --
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (951,721) -- --
---------- --------- ---------
Net increase/(decrease)................................... $ 495,599 $ -- $ --
========== ========= =========
Total net increase/(decrease)............................. $1,009,826 $ 155,836 $ 49,287
========== ========= =========
</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. The numbers reflected are for the period May 1, 1998 to March 31,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 52
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
CALIFORNIA TAX-EXEMPT RESERVES
PERIOD ENDED
SEPTEMBER 30, 1999 PERIOD ENDED YEAR ENDED
(UNAUDITED) MAY 14, 1999(a) FEBRUARY 28, 1999(a)
---------------------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
ADVISER CLASS SHARES:
Sold...................................................... $ 1,558,372 $ 360,557 $ 1,819,932
Issued as reinvestment of dividends....................... 2,347 1,134 7,687
Redeemed.................................................. (1,813,773) (434,617) (1,790,234)
----------- --------- -----------
Net increase/(decrease)................................... $ (253,054) $ (72,926) $ 37,385
=========== ========= ===========
DAILY CLASS SHARES:
Sold...................................................... $ 1,352,355 $ 160,950 $ 601,549
Issued as reinvestment of dividends....................... 2,767 1,318 6,656
Redeemed.................................................. (1,088,922) (165,023) (444,175)
----------- --------- -----------
Net increase/(decrease)................................... $ 266,200 $ (2,755) $ 164,030
=========== ========= ===========
INVESTOR CLASS SHARES:
Sold...................................................... $ 1,163,800 $ 484,932 $ 1,025,796
Issued as reinvestment of dividends....................... 3,532 2,092 15,042
Redeemed.................................................. (1,325,265) (523,636) (1,099,335)
----------- --------- -----------
Net increase/(decrease)................................... $ (157,933) $ (36,612) $ (58,497)
=========== ========= ===========
TRUST CLASS SHARES:
Sold...................................................... $ 627,237 $ -- $ --
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (268,826) -- --
----------- --------- -----------
Net increase/(decrease)................................... $ 358,411 $ -- $ --
=========== ========= ===========
Total net increase/(decrease)............................. $ 213,624 $(112,293) $ 142,918
=========== ========= ===========
</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) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax-
Exempt Reserves on May 14, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
[This page intentionally left blank.]
49
<PAGE> 54
NATIONS RESERVES MONEY MARKET FUNDS
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0249 $(0.0249)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0241 $(0.0241)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0236 $(0.0236)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0226 $(0.0226)
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)
DAILY CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0206 $(0.0206)
INVESTOR CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0217 $(0.0217)
TRUST CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0184 $(0.0184)
SERVICE CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0170 $(0.0170)
</TABLE>
- ---------------
* Cash Reserves Adviser Class and Market Class Shares commenced operations on
September 22, 1994 and May 3, 1996, respectively.
** Cash Reserves Daily Class, Investor Class, Trust Class and Service Class
Shares commenced operations on April 12, 1999, April 12, 1999, May 17, 1999
and April 28, 1999, 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 custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 55
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.51% $8,362,651 0.20%+***(b) 4.98%+ 0.28%+(b)
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 2.44% $1,485,195 0.35%+***(b) 4.83%+ 1.13%+(b)
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 2.38% $3,953,567 0.45%+***(b) 4.73%+ 0.53%+(b)
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 2.28% $2,210,002 0.65%+***(b) 4.53%+ 0.73%+(b)
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+
$1.00 2.07% $7,177,268 0.80%+***(b) 4.38%+ 0.88%+(b)
$1.00 2.19% $2,866,526 0.55%+***(b) 4.63%+ 0.63%+(b)
$1.00 1.85% $1,596,360 0.30%+***(b) 4.88%+ 0.38%+(b)
$1.00 1.71% $ 314,869 1.20%+***(b) 3.98%+ 1.28%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0243 $(0.0243)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0241 $(0.0241)
Period ended 3/31/1999**(a)................................. 1.00 0.0281 (0.0281)
ADVISER CLASS SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0236 $(0.0236)
Period ended 3/31/1999**(a)................................. 1.00 0.0344 (0.0344)
MARKET CLASS SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0226 $(0.0226)
Period ended 3/31/1999**(a)................................. 1.00 0.0214 (0.0214)
DAILY CLASS SHARES
Period ended 9/30/1999***** (unaudited)..................... $1.00 $0.0090 $(0.0090)
SERVICE CLASS SHARES
Period ended 9/30/1999***** (unaudited)..................... $1.00 $0.0150 $(0.0150)
</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 Reserves Liquidity Class, Adviser Class and Market Class
Shares commenced operations on August 7, 1998, July 2, 1998 and October 9,
1998, respectively.
*** The effect of interest expense on the operating expense ratio was less
than 0.01%.
**** For the period from December 1, 1997 through May 15, 1998.
***** Money Market Reserves Daily Class and Service Class Shares commenced
operations on July 21, 1999 and May 18, 1999, 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 custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 57
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.51% $1,087,535 0.20%+***(b) 4.99%+ 0.32%+(b)
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 2.43% $ 17,046 0.35%+***(b) 4.84%+ 1.17%+(b)
1.00 2.87 1,078 0.35+(b) 4.72+ 1.31+(b)
$1.00 2.78% $ 34,262 0.45%+***(b) 4.74%+ 0.57%+(b)
1.00 3.46 6,377 0.45+(b) 4.62+ 0.71+(b)
$1.00 2.28% $ 785,994 0.65%+***(b) 4.54%+ 0.77%+(b)
1.00 2.14 873,993 0.65+(b) 4.42+ 0.91+(b)
$1.00 0.90% $ 4,783 0.80%+***(b) 4.39%+ 0.92%+(b)
$1.00 1.50% $ 5,500 1.20%+***(b) 3.99%+ 1.32%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 58
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0238 $(0.0238)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0231 $(0.0231)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0226 $(0.0226)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0216 $(0.0216)
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)
DAILY CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0196 $(0.0196)
INVESTOR CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0208 $(0.0208)
TRUST CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0176 $(0.0176)
SERVICE CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0142 $(0.0142)
</TABLE>
- ---------------
* Treasury Reserves Adviser Class and Market Class Shares commenced operations
on September 22, 1994 and May 3, 1996, respectively.
** Treasury Reserves Daily Class, Investor Class, Trust Class and Service Class
Shares commenced operations on April 12, 1999, April 12, 1999, May 17, 1999
and May 17, 1999, 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 custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 59
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.41% $1,430,987 0.20%+***(b) 4.80%+ 0.29%+(b)
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 2.33% $ 258,127 0.35%+***(b) 4.65%+ 1.14%+(b)
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 2.28% $1,576,321 0.45%+***(b) 4.55%+ 0.54%+(b)
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 2.18% $1,377,432 0.65%+***(b) 4.35%+ 0.74%+(b)
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+
$1.00 1.97% $ 647,884 0.80%+***(b) 4.20%+ 0.89%+(b)
$1.00 2.09% $ 316,322 0.55%+***(b) 4.45%+ 0.64%+(b)
$1.00 1.77% $ 543,124 0.30%+***(b) 4.70%+ 0.39%+(b)
$1.00 1.43% $ 133,298 1.20%+***(b) 3.80%+ 1.29%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 60
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0239 $(0.0239)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0232 $(0.0232)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0227 $(0.0227)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0217 $(0.0217)
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)
DAILY CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0197 $(0.0197)
INVESTOR CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0208 $(0.0208)
TRUST CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0176 $(0.0176)
SERVICE CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0121 $(0.0121)
</TABLE>
- ---------------
* Government Reserves Adviser Class and Market Class Shares commenced
operations on September 22, 1994 and May 3, 1996, respectively.
** Government Reserves Daily Class, Investor Class, Trust Class and Service
Class Shares commenced operations on April 12, 1999, April 12, 1999, May 17,
1999 and June 8, 1999, 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 custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 61
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.42% $622,807 0.20%+***(b) 4.80%+ 0.30%+(b)
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 2.34% $ 44,657 0.35%+***(b) 4.65%+ 1.15%+(b)
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 2.29% $402,426 0.45%+***(b) 4.55%+ 0.55%+(b)
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 2.19% $360,500 0.65%+***(b) 4.35%+ 0.75%+(b)
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)
$1.00 1.98% $165,672 0.80%+***(b) 4.20%+ 0.90%+(b)
$1.00 2.10% $112,880 0.55%+***(b) 4.45%+ 0.65%+(b)
$1.00 1.78% $121,393 0.30%+***(b) 4.70%+ 0.40%+(b)
$1.00 1.22% $ 2,000 1.20%+***(b) 3.80%+ 1.30%+(b)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 62
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0156 $(0.0156)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0148 $(0.0148)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0143 $(0.0143)
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 SHARES
Six months ended 9/30/1999 (unaudited)...................... $1.00 $0.0133 $(0.0133)
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)
DAILY CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0119 $(0.0119)
INVESTOR CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0131 $(0.0131)
TRUST CLASS SHARES
Period ended 9/30/1999** (unaudited)........................ $1.00 $0.0112 $(0.0112)
</TABLE>
- ---------------
* Municipal Reserves Adviser Class and Market Class Shares commenced
operations on September 22, 1994 and May 3, 1996, respectively.
** Municipal Reserves Daily Class, Investor Class and Trust Class Shares
commenced operations on April 12, 1999, April 12, 1999 and May 17, 1999,
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.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 63
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 1.57% $118,220 0.20%+ 3.09%+ 0.31%+
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 1.49% $140,012 0.35%+ 2.94%+ 1.16%+
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 1.44% $ 98,782 0.45%+ 2.84%+ 0.56%+
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 1.34% $159,999 0.65%+ 2.64%+ 0.76%+
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+
$1.00 1.20% $340,580 0.80%+ 2.49%+ 0.91%+
$1.00 1.32% $ 61,729 0.55%+ 2.74%+ 0.66%+
$1.00 1.12% $495,599 0.30%+ 2.99%+ 0.41%+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 64
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED DIVIDENDS
VALUE NET AND UNREALIZED FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS INCOME
----------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX-EXEMPT RESERVES
ADVISER CLASS SHARES*
Period ended 9/30/1999 (unaudited)........................ $1.00 $0.0129 -- $(0.0129)
Period ended 5/14/1999.................................... 1.00 0.0100 -- (0.0100)
Year ended 2/28/1999...................................... 1.00 0.0268 -- (0.0268)
Year ended 2/28/1998...................................... 1.00 0.0309 -- (0.0309)
Year ended 2/28/1997...................................... 1.00 0.0291 -- (0.0291)
Year ended 2/29/1996...................................... 1.00 0.0331 $ 0.0001 (0.0331)
Year ended 2/28/1995...................................... 1.00 0.0256 (0.0001) (0.0256)
DAILY CLASS SHARES*
Period ended 9/30/1999 (unaudited)........................ $1.00 $0.0112 -- $(0.0112)
Period ended 5/14/1999.................................... 1.00 --(b) -- --
Year ended 2/28/1999...................................... 1.00 0.0238 -- (0.0238)
Year ended 2/28/1998...................................... 1.00 0.0279 -- (0.0279)
Year ended 2/28/1997**.................................... 1.00 0.0107 -- (0.0107)
INVESTOR CLASS SHARES*
Period ended 9/30/1999 (unaudited)........................ $1.00 $0.0124 -- $(0.0124)
Period ended 5/14/1999.................................... 1.00 0.0100 -- (0.0100)
Year ended 2/28/1999...................................... 1.00 0.0261 -- (0.0261)
Year ended 2/28/1998...................................... 1.00 0.0302 -- (0.0302)
Year ended 2/28/1997...................................... 1.00 0.0284 -- (0.0284)
Year ended 2/29/1996...................................... 1.00 0.0324 $(0.0001) (0.0324)
Year ended 2/28/1995...................................... 1.00 0.0249 (0.0001) (0.0249)
TRUST CLASS SHARES
Period ended 9/30/1999*** (unaudited)..................... $1.00 $0.0095 -- $(0.0095)
</TABLE>
- ---------------
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund's Horizon Service Shares, S Shares, X Shares
and Pacific Horizon Shares, which were reorganized into the Adviser Class,
Daily Class and Investor Class, Shares respectively, as of May 14, 1999.
** Period from October 2, 1996 (inception date) to February 29, 1997.
*** California Tax-Exempt Reserves Trust Class Shares commenced operations on
May 24, 1999.
+ 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) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
(b) Amount represents less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 65
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 0.97% $383,148 0.46%+ 3.45%+ 0.49%+
1.00 0.52 636,000 0.50+ 2.49+ 0.52+
1.00 2.71 709,000 0.49(a) 2.65 0.49(a)
1.00 3.13 671,000 0.50(a) 3.06 0.50(a)
1.00 2.95 472,000 0.50(a) 2.92 0.50(a)
1.00 3.36 203,000 0.55(a) 3.43 0.55(a)
1.00 2.59 88,000 0.55 2.50 0.55
$1.00 0.84% $599,817 0.81%+ 3.10%+ 0.84%+
1.00 0.45 334,000 0.80+ 2.21+ 0.82+
1.00 2.41 336,000 0.79(a) 2.35 0.79(a)
1.00 2.83 172,000 0.80(a) 2.80 0.80(a)
1.00 1.09 29,000 0.80+(a) 2.66+ 0.80+(a)
$1.00 0.94% $344,510 0.56%+ 3.35%+ 0.59%+
1.00 0.50 503,000 0.58+ 2.43+ 0.62+
1.00 2.64 539,000 0.56(a) 2.61 0.59(a)
1.00 3.06 598,000 0.57(a) 3.01 0.60(a)
1.00 2.88 493,000 0.57(a) 2.83 0.60(a)
1.00 3.29 528,000 0.62(a) 3.35 0.63(a)
1.00 2.52 187,000 0.62 2.48 0.62
$1.00 0.95% $358,411 0.31%+ 3.30%+ 0.34%+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 66
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Reserves ("Reserves"), formerly known as Nations Institutional Reserves,
is registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company. At September 30, 1999, Reserves
offered sixteen separate portfolios. These financial statements pertain only to
the six money market portfolios of Reserves: Nations Cash Reserves, Nations
Money Market Reserves, Nations Treasury Reserves, Nations Government Reserves,
Nations Municipal Reserves and Nations California Tax-Exempt Reserves
(individually, a "Portfolio", and collectively, the "Portfolios"). Financial
Statements for the other portfolios of Reserves are presented under separate
cover. At September 30, 1999, the Portfolios offered eight classes of shares:
Capital Class Shares, Liquidity Class Shares, Adviser Class Shares, Market Class
Shares, Daily Class Shares, Investor Class Shares, Trust Class Shares and
Service 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 that 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, under
the oversight 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 Statements of net assets.
At September 30, 1999, Treasury Reserves had reverse repurchase agreements
outstanding as follows:
<TABLE>
<S> <C>
Maturity Amount........................ $1,161,855,138
Maturity Date.......................... 10/01/99
Market Value of Assets Sold Under
Agreements........................... $1,145,009,000
</TABLE>
The average daily balance of Treasury Reserves' reverse repurchase agreements
during the six months ended September 30, 1999 was $746,986,066. Cash Reserves
62
<PAGE> 67
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
and Government Reserves did not enter into any reverse repurchase agreements
during the six months ended September 30, 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 six months ended September 30, 1999, representing the difference
between interest rates on the reverse repurchase and repurchase agreements,
amounted to $379,718 and have been included in interest income in the Statements
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.
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 Reserves are allocated to the Portfolios based
upon their relative net assets or other expense allocation methodologies
determined by the nature of the expense in accordance with generally accepted
accounting principles. Expenses directly attributable to a Portfolio or class of
shares are charged to such Portfolio or 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
the Portfolio's custodian. Reserves 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
Reserves has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI") (formerly
known as NationsBanc Advisors, Inc.), a wholly-owned subsidiary of Bank of
America, N.A. ("Bank of America") (formerly known as NationsBank, N.A.), which
in turn is a wholly-owned banking subsidiary of Bank of America Corporation, a
bank holding company organized as a Delaware corporation, pursuant to which BAAI
provides investment advisory services to the Portfolios. Under the Investment
Advisory Agreement, BAAI is currently entitled to receive an advisory fee,
calculated daily and payable monthly, at the maximum annual rate of 0.15% of
each Portfolio's average daily net assets. Effective May 14, 1999, the maximum
advisory fee payable by the Portfolios decreased by 0.15% of the Portfolios'
average daily net assets. Prior to that date, the maximum advisory fee was 0.30%
of the Portfolios' average daily net assets.
Reserves has entered into a sub-advisory agreement with BAAI and TradeStreet
Investment Associates, Inc. ("TradeStreet"), a wholly-owned subsidiary of Bank
of America, pursuant to which TradeStreet is entitled to receive a sub-advisory
fee from BAAI at the maximum annual rate of 0.033% of each Portfolio's average
daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of Reserves.
Under the co-administration agreements, Stephens and BAAI 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. The Bank of New York ("BNY")
serves as sub-administrator of Reserves pursuant to an agreement with BAAI. For
the six months ended September 30, 1999, Stephens earned $1,200,470 from the
Portfolios for its co-administration services and BAAI waived all of its fees
for co-administration services.
63
<PAGE> 68
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
BAAI and/or the sub-advisor and Stephens may, from time to time, reduce their
fees payable by each Portfolio. Effective August 1, 1999, BAAI and/or the
sub-advisor and Stephens agreed to reimburse expenses and/or waive their fees
until July 31, 2000 to the extent that total expenses (excluding shareholder
servicing and distribution fees) exceed an annual rate of 0.20% of each
Portfolio's average daily net assets. Prior to that date, BAAI and/or the
sub-advisor and Stephens had voluntarily agreed to reimburse expenses and/or
waive their fees to maintain these total expense limits.
BNY also serves as the custodian of Reserves' assets. For the six months ended
September 30, 1999, expenses of the Portfolios were reduced by $32,314 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 and California Tax Exempt Reserves do not participate in the
expense offset arrangement.
First Data Investor Services Group, Inc., a wholly-owned subsidiary of First
Data Corporation, serves as the transfer agent for the Portfolios' shares. Bank
of America serves as the sub-transfer agent for the Capital Class Shares of the
Portfolios. Stephens serves as distributor of the Portfolios' shares.
Effective July 1, 1999, the Board of Trustees of Reserves, along with the Boards
of Trustees/Directors of the other open-end registered investment companies in
the Nations Funds family, approved a new compensation structure for the
unaffiliated Trustees/Directors. The new structure compensates the unaffiliated
Trustees/Directors for their services to the open-end registered investment
companies in the Nations Funds family as a whole, rather than to particular
registered investment companies, or series or portfolios thereof. As of
September 30, 1999, the open-end registered investment companies in the Nations
Funds family were Nations Fund Trust, Nations Fund, Inc., Reserves, Nations
Annuity Trust, Nations LifeGoal Funds, Inc. and Nations Master Investment Trust.
Under the new structure, each unaffiliated Trustee/Director receives a base
retainer fee from the open-end registered investment companies in the amount of
$65,000 per year, in addition to $5,000 for each in-person meeting attended and
$1,000 for each telephonic meeting attended. Each unaffiliated Trustee/Director
will be compensated only for a maximum of six in-person meetings per calendar
year. The Chairman of the Boards receives an additional fee of 20% of the base
retainer fee and the Chairman of the Audit Committee receives an additional fee
of 10% of the base retainer fee. The members of the Nominating Committee receive
additional compensation at the rate of $1,000 per meeting attended. Each
unaffiliated Trustee/Director is also reimbursed for expenses incurred in
attending such meetings.
Prior to July 1, 1999, Reserves paid an 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. Reserves also reimbursed expenses incurred by each
unaffiliated Trustee in attending such meetings.
Reserves' 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 Fund,
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 BAAI, have made daily
investments of cash balances in Cash Reserves, pursuant to an exemptive order
received from the Securities and Exchange Commission. At September 30, 1999,
approximately 0.03% of the net assets of the Cash Reserves was held by other
affiliated Nations Funds.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
Reserves has adopted distribution plans pursuant to Rule 12b-1 under the 1940
Act for the Liquidity Class Shares ("Liquidity Class Shares Plan"), the Market
Class Shares ("Market Class Shares Plan"), Daily Class Shares ("Daily Class
Shares Plan"), Investor Class Shares ("Investor Class Shares Plan") and the
Service Class Shares ("Service Class Shares Plan") of the Portfolios. Under the
Liquidity Class Shares Plan, Reserves may reimburse Stephens for actual expenses
incurred by Stephens in connection with its distribution efforts up to 0.30% of
the average daily net assets of the Liquidity Class Shares of the Portfolios.
Under the Market Class Shares Plan, Reserves may compensate or reimburse
Stephens for distribution activities or expenses up to 0.20% of the average
daily net assets of the Market Class
64
<PAGE> 69
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Shares of the Portfolios. Under the Daily Class Shares Plan, Reserves may
reimburse Stephens for actual expenses incurred by Stephens in connection with
its distribution efforts up to 0.35% of the average daily net assets of the
Daily Class Shares of the Portfolios. Under the Investor Class Shares Plan,
Reserves may reimburse Stephens for actual expenses incurred by Stephens in
connection with its distribution efforts up to 0.10% of the average daily net
assets of the Investor Class Shares of the Portfolios. Under the Service Class
Shares Plan, Reserves may reimburse Stephens for actual expenses incurred by
Stephens in connection with its distribution efforts up to 0.75% of the average
daily net assets of the Service Class Shares of the Portfolios. Currently,
Reserves is not reimbursing Stephens for distribution 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 Reserves 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 Treasury
Reserves. Stephens may use this fee to compensate certain financial
institutions, with which it has entered into servicing and/or distribution
agreements, that provide administrative and/or distribution services to
Liquidity Class shareholders. Currently, Reserves is not compensating Stephens
for providing such services.
Reserves also has adopted shareholder servicing plans ("Servicing Plans") for
the Liquidity, Adviser, Market, Daily, Investor and Service Class Shares of the
Portfolios. Under the Servicing Plans, a Portfolio may pay servicing agents that
have entered into a shareholder servicing agreement with Reserves 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.
Reserves also has adopted shareholder administration plans ("Administration
Plans") for the Trust Class Shares of the Portfolios. Under the Administration
Plans, a Portfolio may pay servicing agents that have entered into a shareholder
servicing agreement with Reserves for certain shareholder support services that
are provided by the servicing agents to holders of the classes' shares. Payments
under the Administration Plans will not exceed 0.10%, 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 September 30, 1999, the rates in effect, as a percentage of average daily net
assets, were as follows:
<TABLE>
<CAPTION>
CURRENT PLAN
RATE LIMIT
- -------------------------------------------------------
<S> <C> <C>
DISTRIBUTION PLAN:
Liquidity Class:
Treasury Reserves.................. 0.00% 0.65%
Other Funds........................ 0.00% 0.60%
Market Class........................ 0.20% 0.20%
Daily Class......................... 0.35% 0.35%
Investor Class...................... 0.10% 0.10%
Service Class....................... 0.75% 0.75%
SHAREHOLDER SERVICING PLAN:
Liquidity Class..................... 0.15% 0.25%
Adviser, Market, Daily, Investor,
and Service....................... 0.25% 0.25%
SHAREHOLDER ADMINISTRATION PLAN:
Trust Class......................... 0.10% 0.10%
</TABLE>
A substantial portion of the expenses incurred pursuant to these plans is paid
to affiliates of Bank of America and BAAI.
4. SHARES OF BENEFICIAL INTEREST
At September 30, 1999, an unlimited number of shares of beneficial interest
without par value was authorized for Reserves. Reserves' 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
Schedules of capital stock activity.
5. RESTRICTED SECURITIES
Certain securities may be subject to legal restrictions and may be difficult to
sell. No Portfolio will invest more than 10% of the value of its net assets in
securities that are considered 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.
65
<PAGE> 70
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
CASH RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commonwealth Life Insurance Company,
5.550% 10/01/99+........................... 3/05/99 $ 75,000 $1.00 $ 75,000 0.3% $ 75,000
First Allmerica Financial Life Insurance
Company:
5.631% 12/22/99+......................... 8/25/99 50,000 1.00 50,000 0.2 50,000
5.630% 11/15/99.......................... 8/15/99 50,000 1.00 50,000 0.2 50,000
5.543% 10/01/99+......................... 9/22/99 50,000 1.00 50,000 0.2 50,000
Jackson National Life Insurance Company:
5.100% 10/01/99+......................... 9/01/99 50,000 1.00 50,000 0.2 50,000
5.600% 12/14/99+......................... 9/14/99 50,000 1.00 50,000 0.2 50,000
Peoples Security Life Insurance Company,
5.430% 10/01/99+......................... 5/09/99 25,000 1.00 25,000 0.1 25,000
SMM Trust, Series 1999-B:
5.570% 12/05/99+......................... 3/04/99 50,000 1.00 50,000 0.2 50,000
5.449% 03/15/00.......................... 3/02/99 100,000 1.00 100,000 0.4 100,000
SMM Trust, Series 1999-I,
5.493% 11/26/99+......................... 5/28/99 75,000 1.00 75,000 0.3 75,000
</TABLE>
- ---------------
+ Reset date
MONEY MARKET RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMM Trust Series 1999-E,
5.323% 10/06/99............................ 5/21/99 $ 50,000 $1.00 $ 50,000 0.2% $ 50,000
</TABLE>
TREASURY RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Repurchase Agreement with Goldman Sachs and
Company,
5.500% 02/02/00.......................... 8/6/99 $280,000 $1.00 $280,000 4.5% $280,000
</TABLE>
66
<PAGE> 71
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
MUNICIPAL RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alaska State Housing Finance Corporation,
Housing Revenue, Series 1998, P-Floats
PA-332,
3.850% 12/01/19.......................... 7/06/98 $ 9,995 $1.00 $ 9,995 0.7% $ 9,995
Bristol, Tennessee, Health and Education
Facilities, Revenue, Series 1995A,
3.850% 03/01/14............................ 5/18/98 8,500 1.00 8,500 0.6 8,500
Florida State Turnpike Authority, Turnpike
Revenue, Series 1999-1, 3.870%
07/01/19................................. 2/18/99 20,000 1.00 20,000 1.4 20,000
Intermountain Power Agency, Utah, Power
Supply Revenue, Series 1996,
3.850% 07/01/03.......................... 5/18/98 9,900 1.00 9,900 0.7 9,900
</TABLE>
CALIFORNIA TAX-EXEMPT RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
California Statewide Communities
Development Authority, Lease Revenue,
Floating Rate Receipts, Series
1999-PA457,
3.650% 10/01/33.......................... 6/04/99 $ 1,000 $1.00 $ 1,000 0.1% $ 1,000
California Statewide Communities
Development Authority, Special Facilities
Revenue, Series 1999,
3.650% 10/01/34............................ 3/08/99 25,940 1.00 25,940 1.5 25,940
California, GO,
3.150% 04/01/04.......................... 4/15/99 15,100 1.00 15,100 0.9 15,100
</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 9/30/99 PER UNIT 9/30/99 ASSETS 9/30/99
SECURITY DATE (000) 9/30/99 (000) 9/30/99 (000)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New York Life Insurance Company,
5.379% 10/01/99+......................... 11/10/98 $100,000 $1.00 $100,000 0.4% $100,000
</TABLE>
- ---------------
+ Reset date
67
<PAGE> 72
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
6. LINE OF CREDIT
Reserves participates in an uncommitted line of credit provided by BNY under a
line of credit agreement (the "Agreement"). Advances under the Agreement may be
made 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 a specified 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 six months ended September 30, 1999, borrowings by the Portfolios under
the Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
- ------------------------------------------------------
<S> <C> <C>
Cash Reserves................. $2,832 5.54%
Money Market Reserves......... 380 5.62
Treasury Reserves............. 89 5.81
Government Reserves........... 57 5.71
</TABLE>
The average amount outstanding was calculated based on daily balances in the
period.
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>
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 Schedules 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.
68
<PAGE> 73
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
ACQUISITION OF THE PACIFIC HORIZON FUNDS
On May 14, 1999, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets and liabilities of The Pacific Horizon Funds, also listed
below (each an "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 number and value of shares issued by the
Acquiring Fund are presented in the Schedules of capital stock activity. Net
assets and unrealized appreciation as of the reorganization date were as
follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS OF
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND
ACQUIRED FUND ACQUIRING FUND AFTER ACQUISITION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Reserves Pacific Horizon
Prime Fund $13,963,107 $9,973,944 $23,937,051
Treasury Reserves Pacific Horizon
Treasury Fund 3,144,071 2,533,049 5,677,120
Government Reserves Pacific Horizon
Government Fund 471,810 759,789 1,231,599
Government Reserves Pacific Horizon
Treasury Only Fund 423,864 759,789 1,183,653
Municipal Reserves Pacific Horizon
Tax
Exempt Fund 754,048 380,361 1,134,409
</TABLE>
On May 21, 1999, California Tax-Exempt Reserves, a newly established portfolio
("Acquiring Fund"), acquired the assets and liabilities of the Pacific Horizon
California Tax-Exempt Money Market Fund pursuant to a plan of reorganization
approved by its shareholders. The acquisition was accomplished by a tax-free
exchange of shares of Acquiring Fund in an amount equal to the outstanding
shares of the Pacific Horizon California Tax-Exempt Money Market Fund. The
financial statements of the Acquiring Fund reflect the historical financial
results of the Pacific Horizon California Tax-Exempt Money Market Fund prior to
the reorganization.
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND CORRESPONDING RESERVES
SHARE CLASS SHARE CLASS
- ------------------------- -------------------------
<S> <C>
California Tax-Exempt Nations California Tax
Money Market Exempt Reserves
Horizon Service Shares Advisor Class
Pacific Horizon Shares Investor Class
S Shares Daily Class
X Shares Daily Class
</TABLE>
69
<PAGE> 74
P.O. Box 34602
Charlotte, NC 28234-4602
Toll free 1.800.626.2275 (Institutional Investors)
Toll free 1.800.321.7854 (Individual Investors)
Nations Funds
SAR8 CM991391 (9/99)
