NATIONS INSTITUTIONAL RESERVES, N-30D, 2000-06-08

NATIONS INSTITUTIONAL RESERVES
N-30D, 2000-06-08

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[GRAPHIC: PHOTO COLLAGE WITH CELL PHONE] Nations
International
Value Fund

Nations
International
Equity Fund

Nations
International
Growth Fund

Nations
Emerging Markets
Fund

INTERNATIONAL
STOCK FUNDS

ANNUAL REPORT FOR THE YEAR
ENDED MARCH 31, 2000

[NATIONS FUNDS LOGO]
<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

PRESIDENTS' MESSAGE
Dear Shareholder:

As we report on the past 12 months ending March 31,
2000, we need to remind ourselves of two major
investment tenets -- diversification and investing
for the long term. Keep these points in mind as we
take a look back at the past year and where we are
today.

THE YEAR IN REVIEW
For most of 1999, the threat of Y2K was on everyone's
minds. Many companies in the U.S. and around the
world went to great lengths to make sure that
computer systems were compliant and ready to "squash"
the Y2K bug. Fortunately, we entered the 21st century
relatively unscathed. But in the months that led up
to the year 2000 and in the first quarter of the new
year, the markets have put on quite a show. We've
seen an unusual level of volatility and it doesn't
look like things are going to calm down any time
soon.

While large-company stocks continued to perform well
in 1999 and into 2000, markets began to broaden with
small and mid-size company stocks staging turnarounds
and actually outperforming large-company stocks. The
Standard & Poor's 500 Composite Stock Price Index was
up 17.94% for the 12 months ending March 31, 2000,
while the S&P MidCap 400 Index and Russell 2000 Index
were up 38.20% and 37.29%, respectively.* Value
stocks also regained some ground during the period
after several quarters of underperformance versus
growth stocks.

International markets also showed new life in 1999
and into 2000, especially in Asia where it's been a
long recovery since the Asian "malaise" began in
1997. The Morgan Stanley Capital International (MSCI)
Europe, Australasia and Far East (EAFE) Index gained
25.09% for the 12 months ending March 31, 2000,
thanks in large part to the economic recovery in
Japan.**

MARKET MAYHEM
As of late, we have witnessed wild swings in the U.S.
stock markets, setting new milestones for one-day
gains and losses. It's a tumultuous time in the
markets and now, more than ever, it's important to
remember that one key to a successful investment
strategy is diversification. Investing in a number of
sectors allows you to take advantage of those sectors
that are in favor today, and those that may be in
favor tomorrow. And, as shown by how quickly the
markets have rebounded from these dramatic highs and
lows, you need to remember to stay focused on
long-term goals. Investing takes discipline and a
conviction to hold true to your long-term objectives.
As we've said before, investors that took themselves
out of the market based on short-term volatility and
Y2K fears lost out on potential gains in their
investments during that time and face possible tax
implications and fees as a result of their
withdrawal. It's true that over the long term, the
market has trended upward. While there is no
assurance that this trend will continue, the
advantages of long-term investing are clear.

*The Standard & Poor's 500 Composite Stock Price
Index is an unmanaged index of 500 widely held
common stocks. The Standard & Poor's MidCap 400 Index
is a market-value weighted index that
measures the market value of 400 domestic stocks
chosen for market size, liquidity, and industry
representation. It is unmanaged and unavailable for
investment. The Russell 2000 Index is an
unmanaged capitalization-weighted index that tracks
the performance of 2000 small company stocks. It
is unavailable for investment.

**The Morgan Stanley Capital International Europe,
Australasia and Far East Index is an unmanaged,
capitalization-weighted index that tracks stocks
traded in twenty countries in Europe, Australia, and
the Far East. It is unavailable for investment.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
PRESIDENTS' MESSAGE CONTINUED...

At Nations Funds, we firmly believe in the value of
advice, especially in times of uncertainty. An
investment professional can keep you abreast of
current market conditions and work with you to
determine the best strategy for surviving short-term
volatility and successfully reaching your long-term
goals.

WHAT'S NEW AT NATIONS FUNDS
In its continuing effort to provide world-class
investment management, Bank of America reorganized a
number of internal investment management units into
Banc of America Capital Management, Inc. (BACAP).
Focusing on both equity and fixed income funds, this
Nations Funds Manager of Distinction(SM) is
responsible for the portfolio management of more than
40 Nations Funds. This entity was developed to
synergize research and investment capabilities into a
premier investment management organization. And the
media has taken notice. You may have seen BACAP
investment professionals regularly featured on
programs on CNBC and CNNfn. When the media looks to
the industry for expert analysis, they are now
turning regularly to the investment professionals of
BACAP.

In addition to the changes at BACAP, we enhanced our
investment management expertise with the addition of
MacKay Shields LLC as our newest Manager of
Distinction to manage Nations High Yield Bond Fund,
which debuted in February. The Fund rounds out our
line of fixed income fund offerings. On the equity
side, we launched a new Fund for a new era -- Nations
Marsico 21st Century Fund. This latest offering
managed by Marsico Capital Management, LLC is
positioned to invest in companies of any size that
are changing the way the world does business.

Not only are new products important to us. Quality
shareholder service continues to be of utmost
importance. We were recognized by DALBAR, Inc. -- an
independent evaluator of customer service in the
mutual fund industry -- with the 1999 Mutual Fund
Service Award. This award was given to us in
recognition of our commitment to provide shareholders
with the highest level of client service in the
mutual fund industry. We will strive to maintain this
level of excellence throughout 2000 and beyond.

We are excited about our growth over the past year
and the opportunities ahead of us. Should you have
any questions or comments on your annual report,
please contact your investment professional or call
us at 1.800.321.7854. You can also visit us online at
www.nations-funds.com.

Thank you for being a part of the Nations Funds
family.

Sincerely,

/s/ A. Max Walker
A. MAX WALKER
PRESIDENT AND CHAIRMAN OF THE BOARD
NATIONS FUNDS
/s/ Robert H. Gordon
ROBERT H. GORDON
PRESIDENT
BANC OF AMERICA ADVISORS, INC.

March 31, 2000
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TABLE OF CONTENTS

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<S> <C>
NATIONS FUNDS SPECTRUM 2
INTERNATIONAL MARKET OVERVIEW 3
PORTFOLIO COMMENTARY
Nations International Value Fund 6
Nations International Equity Fund 12
Nations International Growth Fund 17
Nations Emerging Markets Fund 23
FINANCIAL STATEMENTS
Statements of net assets 28
Statements of operations 37
Statements of changes in net assets 38
Schedules of capital stock activity 40
Financial highlights 44
Notes to financial statements 52
Statement of net assets -- Nations Master Investment Trust 61
Nations International Value Master Portfolio 61
Nations International Equity Master Portfolio 64
Statement of operations 69
Statement of changes in net assets 70
Supplementary data 70
Notes to financial statements 71
</TABLE>

<TABLE>
<S> <C>
------------------------------------------------------------------------------
NATIONS FUNDS [DALBAR LOGO]
RECOGNIZED FOR
OUTSTANDING DALBAR, Inc., is a well-respected
CUSTOMER SERVICE research firm that measures
customer service levels and
IN RECOGNITION OF ITS COMMITMENT TO establishes benchmarks in the
PROVIDE SHAREHOLDERS WITH THE financial services industry.
HIGHEST LEVEL OF CUSTOMER SERVICE
IN THE MUTUAL FUND INDUSTRY,
NATIONS FUNDS RECEIVED THE DALBAR
MUTUAL FUND SERVICE AWARD IN 1999.
------------------------------------------------------------------------------
</TABLE>
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THE NATIONS FUNDS FAMILY OF FUNDS
As of March 31, 2000

LOWER RISK/REWARD POTENTIAL

MONEY MARKET FUNDS
Nations Prime Fund
Nations Cash Reserves
Nations Money Market Reserves
Nations Government Money Market Fund
Nations Government Reserves
Nations Treasury Fund
Nations Treasury Reserves
Nations Tax Exempt Fund
Nations Municipal Reserves
Nations California Tax-Exempt Reserves

FIXED INCOME FUNDS
INCOME FUNDS
Nations High Yield Bond Fund
Nations Strategic Income Fund
Nations U.S. Government Bond Fund
Nations Government Securities Fund
Nations Investment Grade Bond Fund
Nations Intermediate Bond Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund

TAX-EXEMPT INCOME FUNDS
Nations Municipal Income Fund
Nations State-Specific Long-Term Municipal
Bond Funds (CA, FL, GA,
MD, NC, SC, TN, TX, VA)
Nations Intermediate Municipal Bond Fund
Nations State-Specific Intermediate Municipal
Bond Funds (FL, GA, MD,
NC, SC, TN, TX, VA)
Nations Short-Term Municipal Income Fund

DOMESTIC EQUITY FUNDS
GROWTH FUNDS
Nations Small Company Fund
Nations MidCap Growth Fund
Nations Marsico Focused Equities Fund
Nations Disciplined Equity Fund
Nations Capital Growth Fund
Nations Strategic Growth Fund
Nations Blue Chip Fund

GROWTH AND INCOME FUNDS
Nations Marsico Growth & Income Fund
Nations Value Fund
Nations Equity Income Fund
Nations Asset Allocation Fund
Nations Balanced Assets Fund
Nations Convertible Securities Fund

INTERNATIONAL FUNDS
Nations Emerging Markets Fund
Nations International Growth Fund
Nations International Equity Fund
Nations International Value Fund

HIGHER RISK/REWARD POTENTIAL

INDEX FUNDS
Nations LargeCap Index Fund
Nations Managed Index Fund
Nations SmallCap Index Fund
Nations Managed SmallCap Value Index Fund
Nations Managed Value Index Fund

ASSET ALLOCATION PORTFOLIOS
Nations LifeGoal Balanced Growth Portfolio
Nations LifeGoal Growth Portfolio
Nations LifeGoal Income and Growth Portfolio

2
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INTERNATIONAL MARKET OVERVIEW
GARTMORE GLOBAL PARTNERS

A year can make a big difference in global stock
markets. In the 12-month period ended March 31, 2000,
economic activity picked up around the world. And so,
too, did international equity markets. We saw many
crises overshadowing the markets during the previous
reporting period -- in Asia, Russia, Brazil, as well
as the Long Term Capital Management debacle. These
various crises receded into memory while a
combination of strong economic growth, subdued
inflation, low unemployment and technology fever
combined to push markets to new highs -- most notably
in Brazil, Mexico and Hong Kong. But Europe, Japan
and the Pacific ex-Japan region also were strong,
helping the Morgan Stanley Capital International
Europe, Australasia, and Far East (MSCI EAFE) Index
outpace the Standard & Poor's 500 Composite Stock
Price Index in U.S. dollar terms by a considerable
margin (25.09% versus 17.94%, respectively)*. The yen
remained strong during the period while the new euro
experienced teething problems, falling below parity
with the U.S. dollar. Clearly, the most noteworthy
development of the past 12 months was the emergence
of the so-called TMT (telecommunications, media,
technology) sectors as the driving force of markets,
while financials, pharmaceuticals and energy stocks
all lost ground.

Looking ahead toward the next 12 months, we believe
that accelerating economic activity should continue
to support international equity markets. Rising
interest rates are a concern, particularly in Europe,
and there may be some inflationary pressures.
However, strong corporate earnings growth is forecast
in all regions. The bigger question concerns the
recent narrowing of stock market leadership worldwide
that has resulted in the TMT stocks rising at the
expense of virtually all other stock sectors.
Reflecting this trend, Morgan Stanley Capital
International has reorganized its index
classifications to include technology as a separate
sector. However, the sector has gone through a few
rocky patches of late and may continue hitting
obstacles as newly launched dot.coms suffer from
"cash burn" over the next year. Outside the
technology sector, we believe there are many other
companies which stand to benefit from newly emerging
e-commerce strategies.

Over the past 12 months, the direction of interest
rates has shifted in Europe. With the euro under
constant pressure throughout the period, the European
Central Bank has twice notched up its policy rate (an
administered interest rate, similar to the Federal
Funds rate in the U.S.) to 3.25%, reflecting concern
about the possible inflationary effects of oil
imports. In the United Kingdom, interest rates have
risen from 5.5% to 6.0% over the past year,
reflecting concern over soaring property prices and
sterling strength which has probably led to a
deterioration of the U.K. trade accounts. Against
this background, however, corporate profits have
risen beyond our expectations and we are projecting
rises in earnings of 17% for Continental Europe and
12% for the U.K. in 2000. We have raised our estimate
of

*The Morgan Stanley Capital International Europe,
Australasia, Far East (MSCI EAFE) Index is an
unmanaged, capitalization-weighted index that tracks
stocks traded in twenty countries in Europe,
Australia and the Far East. It is unavailable for
investment.

The Standard & Poor's 500 Composite Stock Price Index
is an unmanaged index of 500 widely held
common stocks. It is unavailable for investment.

Source for all statistical data -- Gartmore Global
Partners

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
3
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INTERNATIONAL MARKET OVERVIEW
GARTMORE GLOBAL PARTNERS

GDP (gross domestic product) growth rate for the U.K.
in 2000 from 2.7% to 2.9%, while in Continental
Europe, we are forecasting GDP growth of 3.1%.

Equity markets in Europe have strengthened over the
reporting period, generally in line with the economic
trend. The popularity of technology and
telecommunications stocks resulted in the smaller
markets of Finland and Sweden outperforming the rest
of Europe because of the dominance of Nokia and
Ericsson in their respective markets. In contrast,
Switzerland has been the notable loser due to the
predominance of financials and pharmaceuticals in its
stock market.
In the Pacific ex-Japan region, there has been some
upward pressure on interest rates. Until recently,
however, rising interest rates had little impact on
investor sentiment, with the exception of Australia.
Most notably, Hong Kong appears to have been less
affected by interest rate fears than in the past
because the interest-rate sensitive property and
financial sectors have been supplanted by
China-related technology and telecom plays.
Nevertheless, concerns over the low level of interest
rates are mounting as economic growth across the
region continues, bringing with it the possibility of
inflation. This is particularly true in Korea, where
growth over the past year has been exceptionally
strong. Australia is on a tightening course as its
government moves to tame inflation, now 4.2%, against
a background of strong economic growth, expected to
be 4% this year. Markets across the region have risen
strongly over the past twelve months, although there
has been a notable retreat over the past quarter as
concerns over interest rates and regional politics
cast shadows over investor sentiment.

The strongest earnings signals appear now to be
coming out of Latin America, where we continue to
favor the dominant markets of Brazil and Mexico. They
have enjoyed stock market rallies of more than 50%
each in U.S. dollar terms over the reporting period,
demonstrating the potential of emerging markets when
prudent government policy, falling interest rates and
global economic growth combine to drive up corporate
earnings. The recent upgrading of Mexico's debt and
improved outlook for Brazil's debt can only speed the
process. In both countries, interest rates broke
through the 20% barrier in the final quarter of 1999
and Brazil recently initiated a further 0.50% cut in
late March. Overall, the consensus outlook for
earnings growth in the region is for 27% in 2000,
rising from 23.5% in 1999. However, we believe there
is scope for unexpected earnings surprises in the
region given the falling interest rate environment
and record number of prudent government economic
policies.

The Japanese economy continued to be weak with GDP
falling 1.0% in the third quarter of 1999 and a
further contraction in the fourth quarter. In U.S.
dollar terms, the market outperformed Europe and the
Pacific ex-Japan region over the reporting period.
However, this was purely a function of currency. The
market continued to be extremely narrow in focus as
investors concentrated on the "new Japan" sector.
Mixed consumption indicators suggested that consumer
spending remained subdued in January and the Bank of
Japan's zero interest rate policy remained unchanged.
On a slightly brighter note, a recent surge in
machinery orders points to better times ahead and
industrial production is expected to rise. Our view
is that the Japanese economy will grow this year but
that consumer price deflation will persist.

Looking ahead, economic growth should continue
throughout this year in virtually all regions of the
world outside the United States, providing a solid
underpinning

4
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INTERNATIONAL MARKET OVERVIEW
GARTMORE GLOBAL PARTNERS

for corporate earnings and for further progress in
equity markets. A slight slowdown is expected in
2001. The impact of rising interest rates in Europe
is a concern and could become one in the Pacific
outside Japan. However, corporate earnings growth in
both regions is expected to remain solid and we are
encouraged by the continued restructuring activities
in Pacific ex-Japan. While the Taiwanese situation
gives some cause for concern, the muted response of
China to the recent election and the calming tones of
the newly elected government are positive. At this
point, it could be argued that apart from Pacific
ex-Japan, Latin America holds the brightest prospects
for unexpected earnings surprise given the favorable
interest rate background. On Europe, we remain
roughly neutral, with the favorable outlook for
corporate earnings finely balanced with a less
attractive interest rate background. In Japan, we
continue to wait for some sign of an end to
deflation, although moribund as it appears relative
to other regions, the economy should show some life
this year.

From a bottom-up perspective, the influence of
technology, e-commerce in particular, will remain a
key theme in stock selection. International markets
offer a wide range of opportunities -- from
telecommunication companies like Nokia and Ericsson
to specialty chip makers like Taiwan Semiconductor
Manufacturing. We will continue to emphasize those
companies with a track record and the prospect of
unexpected long-term earnings, rather than direct
plays on the internet whose longevity is an open
question.

For long-term investors in the U.S., we continue to
believe that international markets offer the prospect
of unexpected earnings growth as well as
diversification through investments uniquely placed
in their respective regions and sectors.

STEPHEN WATSON
CHIEF INVESTMENT OFFICER
GARTMORE GLOBAL PARTNERS

March 31, 2000

5
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NATIONS INTERNATIONAL VALUE FUND
INVESTMENT COMMITTEE COMMENTARY*

<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, THE COMMITTEE SHARES ITS VIEWS
ON NATIONS INTERNATIONAL VALUE FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND ITS OUTLOOK FOR THE
FUTURE.

PORTFOLIO MANAGEMENT PLEASE DESCRIBE THE FUND'S PHILOSOPHY AND STYLE.
The Fund is managed by the Large Nations International Value Fund is managed using a
Cap Investment Committee of Graham-and-Dodd value discipline to select international
Brandes Investment Partners, L.P., equities. We search the world on a company-by-company basis
investment sub-adviser to the seeking stocks that we believe are undervalued, often for
Fund. irrational reasons. After investing in these stocks, we
INVESTMENT OBJECTIVE intend to hold them for three-to-five years to allow them to
The Fund seeks long-term capital seek to achieve their long-term, or intrinsic value. A focus
appreciation by investing on individual security selection -- also known as bottom-up
primarily in equity securities of research and analysis -- drives country and sector
foreign issuers, including allocation. We make no top-down predictions. We will not,
emerging markets countries. for example, buy energy stocks because we think oil prices
PERFORMANCE REVIEW may rise. Instead of speculating on macroeconomic factors,
For the 12-month period ended we focus on the fundamental strengths of thousands of
March 31, 2000, Nations individual companies and select only those meeting our
International Value Fund Investor strict investment criteria. As value investors, we see
A Shares provided shareholders opportunity in periods characterized by extremes and believe
with a total return of 35.86%.** markets soaring to unprecedented highs or enduring sharp
losses reflect investors' overreaction to short-term events.
We viewed the underperformance among many value-oriented
stocks during the prior 12-month period as an exceptional
opportunity to add to existing positions or make new
investments in companies selling at steep discounts from
what we believe to be their intrinsic values. Over time, we
believe that the market will recognize the underlying value
of these stocks and the prices will rise. We believe that by
purchasing stocks at discounts from their long-term value, a
"margin of safety" against price declines is created -- thus
reducing risk while providing the opportunity for capital
appreciation.

PLEASE COMMENT ON FUND PERFORMANCE FOR THE PERIOD.
Nations International Value Fund (Investor A Shares)
provided shareholders with a total return of 35.86%,
substantially outperforming its benchmark, the Morgan
Stanley Capital International Europe, Australasia, Far East
(MSCI EAFE) Index,*** which returned 25.09%.
</TABLE>

*The outlook for this Fund may differ from that
presented for other Nations Funds mutual funds.

**The performance shown does not reflect the maximum
front-end sales charge of 5.75%, which may apply to
purchases of Investor A Shares. For standardized
performance, please refer to the Performance table.
Performance shown includes the effect of fee waivers
by the investment adviser and the co-administrator,
which have the effect of increasing total return.

***The Morgan Stanley Capital International Europe,
Australasia, Far East (MSCI EAFE) Index is an
unmanaged, capitalization-weighted index that tracks
stocks traded in twenty countries in Europe,
Australia and the Far East. It is unavailable for
investment.

Source for all statistical data -- Brandes Investment
Partners, L.P.

INVESTMENTS IN INTERNATIONAL INVESTMENTS MAY INVOLVE
SPECIAL RISKS, INCLUDING FOREIGN TAXATION, CURRENCY
RISKS, RISKS ASSOCIATED WITH POSSIBLE DIFFERENCES IN
FINANCIAL STANDARDS AND OTHER MONETARY AND POLITICAL
RISKS ASSOCIATED WITH FUTURE POLITICAL AND ECONOMIC
DEVELOPMENTS.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
6
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NATIONS INTERNATIONAL VALUE FUND
INVESTMENT COMMITTEE COMMENTARY continued

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WHAT WERE INTERNATIONAL ECONOMIC AND MARKET CONDITIONS LIKE
DURING THE REPORTING PERIOD?
During the 12-month period ending March 31, 2000,
international markets were characterized by:
- Investor preference for technology-related stocks
- Continued underperformance of value-oriented issues
- Evidence of economic recovery in developed and emerging
markets
- Rising interest rates
- Record levels of merger and acquisition (M&A) activity
Among developed markets, escalating demand for technology
stocks lifted various regional indices to record levels. In
Japan, although economic concerns weighed on first-quarter
performance, optimism regarding government reform and
corporate restructuring contributed to gains throughout much
of the period. Strong economic growth among emerging
markets, especially in Latin America, spurred stocks in
these regions. In Brazil, for example, news that gross
domestic product climbed 3% in the fourth quarter lifted the
Bovespa Index to a record high.

Further reflecting investor confidence, initial public
offerings reached record highs and merger and acquisition
activity continued to be heavy, highlighted by Vodafone
AirTouch's $198 billion acquisition of Mannessman in the
first quarter, the largest corporate takeover ever. European
management teams' ongoing focus on enhancing shareholder
value also contributed to the optimistic environment.

Despite these positive developments overseas during the
quarter, a number of factors constrained stock prices. These
factors included investors' neglect of value-oriented
stocks, lingering fears of higher interest rates, concerns
regarding the euro's weakness, slumping markets in Southeast
Asia, and Japan's lingering economic woes.

Overall, the Morgan Stanley Capital International (MSCI)
World Index(+), a benchmark for global investing, climbed
20.6%. The MSCI EAFE Index(+), a benchmark for investing
outside the United States, gained 25.09%. The MSCI Emerging
Market Free (MSCI EMF) Index,++ a benchmark for emerging
markets, was up 49.2% during the period. Similar to U.S.
markets, these solid gains tended to mask broader market
weakness. A narrow advance, primarily concentrated among
technology and telecommunication stocks, propped up
benchmark returns while many sectors languished or fell. For
example, through March 31, 2000, the telecommunication
services and information technology sectors comprising the
MSCI EMF Index gained 16.7% and 18.1%, respectively, year to
date. All eight other sectors posted losses over the same
period with the most severe decline occurring among
industrials, down 12.4%.

Investor preference for technology-related shares had a
largely negative affect on value stocks. For most of the
period, investors ignored solid fundamental traits and
attractive valuations among value stocks in favor of
growth-oriented tech issues.
</TABLE>

+The Morgan Stanley Capital International World Index
is an unmanaged, capitalization-weighted index that
tracks stocks traded in twenty-three countries. It is
unavailable for investment.

++The Morgan Stanley Capital International Emerging
Market Free (MSCI EMF) Index is an
unmanaged, capitalization-weighted index that tracks
stocks traded in 27 emerging market countries. It
does not include shares not readily purchased by
non-local investors. It is unavailable for
investment.

7
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NATIONS INTERNATIONAL VALUE FUND
INVESTMENT COMMITTEE COMMENTARY continued

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WHAT COUNTRY OR REGIONAL DECISIONS CONTRIBUTED THE MOST TO
THE FUND'S PERFORMANCE?
For the 12-month period ended March 31, 2000, holdings in
Germany, Japan, Brazil, and Mexico were among the best
performers. Holdings in the United Kingdom were among the
weakest performers during the period. As we mentioned
earlier, the weightings in countries, sectors, industries,
and currencies are largely the result of our
company-by-company stock selection process -- not top-down
allocations driven by market forecasts or projections.

WHAT ARE SOME EXAMPLES OF STOCKS HELD BY THE FUND THAT
PERFORMED PARTICULARLY WELL?+++
Amid growing demand for telecommunication services
worldwide, a number of holdings in the telecom industry
delivered solid gains during the period, including Deutsche
Telekom AG (Germany), Telecom Italia SpA (Italy), and
Telefonos de Mexico (Mexico). Other top-performing issues
included Kyocera (Japan), Total Fina Elf (France), and DBS
Group Holdings (Singapore). Kyocera was sold from the
portfolio in the first quarter. Like QUALCOMM Inc.,
Kyocera's stock price surged following the announcement that
Kyocera was buying QUALCOMM's handset manufacturing
business. However, as euphoria regarding the announcement
faded, share prices for both stocks declined. We sold our
position in Kyocera at a significant gain from our cost
basis.

DBS Group Holdings Limited, Singapore's largest banking
group, was purchased due to its attractive valuation and
long-term competitive position. We believe the bank has a
very strong balance sheet and is conservatively managed. DBS
Group has an excellent reputation, and we believe the bank
is well positioned to expand its operations throughout
Southeast Asia.

WHAT IMPACT DID CURRENCY HAVE ON THE FUND'S PERFORMANCE?
During the period, the yen strengthened by approximately
14.0%. The Fund's exposure to this currency was a positive
influence on returns. Over the same period, the euro
weakened by approximately 11.0% and negatively affected the
Fund's returns. Another significant currency represented in
the Fund is the British pound. It was up a little more than
1.0% during the period, translating into a minimal impact on
performance. Our most significant emerging markets exposure
was to the Brazilian real, off approximately 1.0% and also a
neutral factor on performance.

We do not believe that currencies present major risks to
long-term investors in a diversified portfolio and we do not
hedge our positions. One of the main reasons to invest
internationally is to gain the benefits of diversification,
a significant part of which is provided by the currency
component.

WHAT INVESTMENT OPPORTUNITIES DO YOU ANTICIPATE IN THE YEAR
AHEAD? HOW ARE YOU POSITIONING THE FUND TO TAKE ADVANTAGE OF
THESE OPPORTUNITIES?
Our focus on researching and analyzing individual companies
precludes us from top-down positioning. Quite simply, we
viewed the recent underperformance among value stocks
worldwide as a good opportunity to selectively add to
existing
</TABLE>

+++Portfolio holdings are subject to change and may
not be representative of current holdings.

8
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NATIONS INTERNATIONAL VALUE FUND
INVESTMENT COMMITTEE COMMENTARY continued

<TABLE>
<S> <C>
positions or make new purchases in solid companies trading
below our estimates of their intrinsic values. Over the last
12 months, we reduced exposure on a stock-specific basis in
Asia, particularly Japan. Following strong returns in the
Japanese market in 1999, we redeployed assets to selective
positions elsewhere around the globe, particularly in the
United Kingdom and Germany where our bottom-up approach
continues to uncover companies with solid fundamentals that
are attractively priced. We believe long-term investors will
be rewarded for their patience as stock markets evolve to
more accurately reflect companies' underlying values.
</TABLE>

9
<PAGE> 14

NATIONS INTERNATIONAL VALUE FUND

PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)

[PIE CHART]

<TABLE>
<S> <C>
Singapore 3.2%
Canada 3.7%
Italy 4.2%
Hong Kong 5.6%
Switzerland 6.2%
Brazil 6.5%
France 7.4%
Japan 12.3%
Other 16%
Germany 7.9%
United Kingdom 27%
</TABLE>

<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Allied Zurich plc, ADR 3.2%
-------------------------------------------------
2 Bayersche Motoren Werke AG 3.2%
-------------------------------------------------
3 Total Fina Elf 2.9%
-------------------------------------------------
4 Tokio Marine & Fire Insurance
Company, Ltd., ADR 2.9%
-------------------------------------------------
5 Mitsubishi Heavy Industries Ltd. 2.9%
-------------------------------------------------
6 ENI SpA 2.9%
-------------------------------------------------
7 Unilever plc, ADR 2.8%
-------------------------------------------------
8 ING Groep NV, ADR 2.8%
-------------------------------------------------
9 CLP Holdings Limited 2.5%
-------------------------------------------------
10 Alcatel SA, ADR 2.4%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>

PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.

10
<PAGE> 15

NATIONS INTERNATIONAL VALUE FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT

AVERAGE ANNUAL TOTAL RETURN
Investor A Shares

<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(12/27/95
through
3/31/00) 21.00% 19.33%
</TABLE>

The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
International Value Fund from
the inception of the share
class. The Morgan Stanley
Capital International Europe,
Australasia and Far East (MSCI
EAFE) Index is an unmanaged,
capitalization-weighted index
that tracks stocks traded on 20
exchanges in Europe, Australia
and the Far East. Funds included
in the Lipper International
Funds Universe invest their
assets in securities with
primary trading markets of the
U.S. It is not possible to
invest in the Index or Lipper
Universe. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.

[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]

<TABLE>
<CAPTION>
NATIONS INTERNATIONAL VALUE LIPPER INTERNATIONAL FUNDS
FUND $21,226 MSCI EAFE INDEX $16,582 UNIVERSE $18,825
--------------------------- ----------------------- --------------------------
<S> <C> <C> <C>
Dec. 27 1995 9425 10000 10000
1995 9374 10000 10000
9591 10297 10448
10184 10468 10829
10043 10463 10783
1996 10809 10637 11223
11436 10478 11353
12936 11846 12620
13496 11770 12794
1997 13012 10856 11814
15353 12461 13547
14518 12602 13647
12112 10819 11449
1998 14550 13064 13333
15623 13255 13539
17810 13591 14302
17865 14188 14863
1999 22180 16599 18689
Mar. 31 2000 21226 16582 18825
</TABLE>

[INVESTOR A SHARES AT NAV** RETURN CHART]

<TABLE>
<CAPTION>
NATIONS INTERNATIONAL VALUE LIPPER INTERNATIONAL FUNDS
FUND $22,521 MSCI EAFE INDEX $16,582 UNIVERSE $18,825
--------------------------- ----------------------- --------------------------
<S> <C> <C> <C>
Dec. 27 1995 10000 10000 10000
1995 9946 10000 10000
10176 10297 10448
10806 10468 10829
10655 10463 10783
1996 11468 10637 11223
12134 10478 11353
13726 11846 12620
14320 11770 12794
1997 13806 10856 11814
16289 12461 13547
15403 12602 13647
12851 10819 11449
1998 15438 13064 13333
16576 13255 13539
18897 13591 14302
18955 14188 14863
1999 23533 16599 18689
Mar. 31 2000 22521 16582 18825
</TABLE>

TOTAL RETURN (AS OF 3/31/00)

<TABLE>
<CAPTION>
INVESTOR A INVESTOR B+ INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 12/27/95 12/27/95 5/22/98 6/15/98
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 36.03% 35.86% 28.05% 34.51% 29.51% 34.64% 33.64%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 23.01% 22.90% 20.51% 22.29% 21.62%
SINCE INCEPTION 21.16% 21.00% 19.33% 20.58% 20.32% 27.04% 27.04%
</TABLE>

THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS. A MUTUAL FUND'S SHARE PRICE AND INVESTMENT RETURN WILL VARY WITH
MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. Average annual returns are
historical in nature and measure net investment income and capital gain or loss
from portfolio investments assuming reinvestment of distributions.

*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 5.75%.

**Figures at net asset value (NAV) do not reflect any sales charges. Investor A
Shares are available with a reduced or waived sales charge only under certain
circumstances as described in the prospectus.

***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.

+Investor B Shares commenced operations on May 22, 1998 and have no performance
prior to that date. Performance prior to May 22, 1998 is that of Investor A
Shares at NAV, which have lower ongoing expenses than Investor B Shares. If the
higher ongoing expenses Investor B Shares had been reflected, total returns
would have been lower.

The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
11
<PAGE> 16

NATIONS INTERNATIONAL EQUITY FUND
MANAGEMENT TEAMS COMMENTARY*

PORTFOLIO MANAGEMENT During the past year, the Fund changed its investment
The Fund is a "multi-manager" management approach by adding two sub-advisers: Putnam
fund, meaning that it is managed Investment Management, Inc. (Putnam), and INVESCO Global
by more than one sub-adviser. Each Asset Management (N.A.), Inc. (INVESCO) in addition to
sub-adviser manages approximately Gartmore Global Partners. The intent of this change is to
one-third of the Fund's assets. diversify away from specific manager risk and to enhance
The three sub-advisers to the Fund return potential. We believe that managing the Fund's assets
are Gartmore Global Partners, with multiple managers, each with a distinct yet
INVESCO Global Asset Management complementary investment style, may result in better
(N.A.), Inc., and Putnam performance and greater consistency of returns over time.
Investment Management, Inc. IN THE FOLLOWING INTERVIEW, THE TEAMS SHARE THEIR VIEWS ON
INVESTMENT OBJECTIVE NATIONS INTERNATIONAL EQUITY FUND'S PERFORMANCE FOR THE
The Fund seeks long-term capital 12-MONTH PERIOD ENDED MARCH 31, 2000 AND THEIR OUTLOOK FOR
growth by investing primarily in THE FUTURE.
equity securities of non-United PLEASE DESCRIBE THE FUND'S INVESTMENT PHILOSOPHY AND STYLE.
States companies in Europe, Nations International Equity Fund's intention is to provide
Australia, the Far East and other shareholders with long-term growth by investing in equity
regions, including developing securities of companies located outside the U.S. The Fund is
countries. an "extended" EAFE vehicle, meaning that in addition to
PERFORMANCE REVIEW investing in the countries contained in the Morgan Stanley
For the 12-month period ended Capital International Europe, Australasia, Far East (MSCI
March 31, 2000, Nations EAFE) Index,*** it also invests in lesser developed
International Equity Fund Investor countries. The Fund is designed to be a core international
A Shares provided shareholders holding with a strong tilt toward growth.
with a total return of 39.54%.** The Fund features:
-- A combination of top-down regional allocation and
bottom-up stock selection;
-- Large capitalization securities; and
-- "Extended" EAFE exposure seeking to enhance performance
through investments in emerging markets.
</TABLE>

*The outlook for this Fund may differ from that
presented for other Nations Funds mutual funds.

**The performance shown does not reflect the maximum
front-end sales charge of 5.75%, which may be
charged on purchases of Investor A Shares. For
standardized performance, please refer to the
Performance table. Performance shown includes the
effect of fee waivers by the investment adviser,
which have the effect of increasing total return.

Source for all statistical data -- Gartmore Global
Partners, INVESCO and Putnam.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
12
<PAGE> 17
NATIONS INTERNATIONAL EQUITY FUND
MANAGEMENT TEAMS COMMENTARY continued

<TABLE>
<S> <C>
Gartmore considers its primary goal to be identifying
opportunities for unexpected and above-average future
earnings growth. The team attempts to achieve this by
screening regions, countries, sectors and individual stocks
to determine areas of emphasis to achieve earnings growth
that is consistently higher than consensus forecasts. By
combining active regional and country allocations with
theme-based sector and stock selection, the team seeks to
maintain a portfolio that strategically emphasizes growing
markets. At the same time, Gartmore seeks to avoid those
markets with less favorable prospects. The process is driven
by fundamental research that combines analysis from the
macroeconomic to the individual company level.
The Putnam team considers its primary goal to be seeking
consistent, above-average returns and low relative risk by
investing in a diversified portfolio of non-U.S. companies
which Putnam believes are selling significantly below their
long-term worth. To attempt to achieve this, Putnam uses a
style-neutral, systematic approach that blends top-down
country and sector allocation and bottom-up stock selection
driven by valuation, fundamental research, and quantitative
analysis.
The INVESCO team uses a bottom-up style of management with a
primary focus on stock selection. INVESCO favors
high-quality, stable growth companies that appear to be
attractively priced based on a discounted cash flow approach
to investing.

PLEASE COMMENT ON FUND PERFORMANCE FOR THE PERIOD.
Nations International Equity Fund (Investor A Shares)
provided shareholders with a return of 39.54%, substantially
outperforming its benchmark, the Morgan Stanley Capital
International Europe, Australasia, Far East (MSCI EAFE)
Index, which returned 25.09%.
WHAT WAS THE INVESTMENT ENVIRONMENT FOR INTERNATIONAL EQUITY
INVESTING DURING THE FISCAL YEAR?
International equity markets thrived over the period amid a
broad recovery in economic growth and corporate
profitability. After a slow start early in 1999, investors
became increasingly convinced that economies outside the
United States, previously perceived as stagnant or even
contracting, had begun to show signs of recovery. The
improving international economic conditions were highlighted
by larger-than-expected European interest rate cuts and the
apparent revival of Asian economies, which assured investors
that the international markets' deceleration in profit
growth was coming to an end.
In Europe, there was increasing evidence during the period
of a broad-based recovery, from the peripheral countries to
the larger, core economies of France, Italy, and Germany.
After a successful launch, the euro weakened steadily during
1999, providing exporters with a competitive edge. Mergers
and corporate restructurings also persisted throughout the
period, as European companies pursued cost-cutting
initiatives and increased shareholder value.
Economic growth in many Pacific Basin countries was
surprisingly vibrant throughout the period. The improvement
of the Japanese economy, in particular, sparked a
significant strengthening of the yen against the U.S.
dollar. Many newer, faster growing telecommunications,
computer, and information technology companies, and an
expanding service sector fueled the expansion of the
Japanese economy. In stark contrast, there was significant
consolidation in Japan's older industries, which struggled
to compete.
</TABLE>

13
<PAGE> 18
NATIONS INTERNATIONAL EQUITY FUND
MANAGEMENT TEAMS COMMENTARY continued

<TABLE>
<S> <C>
Markets in Latin America were also vibrant. In particular,
Brazil, Argentina, and Mexico enjoyed strong growth, driven
by competitive currencies, robust merger-and-acquisition
activity, and compelling valuations. Moreover, pro-growth
monetary policies by central banks around the world have
reduced risk on a global basis, boosting investor tolerance
for emerging markets.

WHAT AREAS AND HOLDINGS CONTRIBUTED TO THE PERFORMANCE OF
THE FUND?+
Investments in the technology and telecommunications sectors
were the leading contributors to performance. Leading
performers among the technology holdings included SAP AG
(Germany), Philips Electronics NV (Netherlands), Murata and
NTT DoCoMo (Japan), Samsung Electronics (Korea) and
STMicroelectronics (France). The Fund's telecommunications
holdings performed exceptionally well, led by Nokia
(Finland), Ericsson (L.M.) Telephone Company (Sweden),
Nortel Networks Corporation (Canada), Telmex (Mexico),
Telecom Italia SpA (Italy), and Mannesmann AG (Germany).
Other strong contributors included media companies such as
News Corporation of Australia and Nippon Television of
Japan. Sony Corporation, the diversified electronics
products company based in Japan, also had stellar
performance.
Investments in Latin America's emerging markets, notably
Brazil and Mexico, did very well, although the Fund did not
take large positions in them.
The exceptionally strong performance by the yen in
international currency markets helped returns, although the
yen's positive effects were somewhat offset by the weak
performance of the euro, which muted the results from
European investments.

WHAT IS THE OUTLOOK FOR THE YEAR AHEAD?
In Gartmore's view, accelerating economic activity should
continue to support international equity markets over the
next 12 months. Rising interest rates are a concern,
particularly in Europe, and there may be some inflationary
pressures. However, healthy corporate earnings growth is
expected in all regions -- even in Japan.
Putnam believes the prospects for investment opportunities
are bright, especially in France, where the equity market is
bolstered by a healthy economy and a burgeoning technology
and telecommunications sector. Putnam also has a favorable
view of opportunities in Germany and Japan, and has a
positive view about the prospects in emerging markets.
However, the firm believes the market in the United Kingdom
may continue to be vulnerable.
INVESCO is reasonably optimistic about the outlook for
international stocks, particularly in relation to the
domestic market. Supporting this view are the low levels of
inflation and interest rates abroad, the coordinated
recovery of economies in Europe and Asia, and the
substantial amount of merger and acquisition activity
occurring overseas. The inclination of foreign investors to
shift more of their assets from fixed-income vehicles into
equities is also contributing to a favorable climate for
stocks. INVESCO believes that offsetting this, to some
degree, is the tightening stance of the U.S. Federal Reserve
Board and the high valuations in certain areas of the
market.
</TABLE>

+Portfolio holdings and characteristics are subject
to change and may not be representative of current
holdings and characteristics.

14
<PAGE> 19

NATIONS INTERNATIONAL EQUITY FUND

PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)

[PIE CHART]

<TABLE>
<S> <C>
Japan 23.6%
Other 17.6%
Sweden 3.2%
Finland 3.4%
Hong Kong 3.6%
Italy 3.9%
Switzerland 4.1%
Netherlands 5.6%
Germany 5.6%
France 11.7%
United Kingdom 17.7%
</TABLE>

<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Vodafone AirTouch plc 3.1%
-------------------------------------------------
2 Total Fina 2.7%
-------------------------------------------------
3 Nokia A+B Oy 2.5%
-------------------------------------------------
4 Nippon Telegraph and Telephone
Company 2.4%
-------------------------------------------------
5 Sony Corporation 2.4%
-------------------------------------------------
6 Ericsson (L.M.) Telephone Company,
Series B 2.0%
-------------------------------------------------
7 Shell Transport & Trading Company
Ord. 1.6%
-------------------------------------------------
8 Kyocera Corporation 1.5%
-------------------------------------------------
9 Telecom Italia Mobile SpA 1.2%
-------------------------------------------------
10 Internationale Nederlanden Groep NV 1.1%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>

PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.

15
<PAGE> 20

NATIONS INTERNATIONAL EQUITY FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT

AVERAGE ANNUAL TOTAL RETURN
Investor A Shares

<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(6/3/92 through
3/31/00) 11.12% 10.28%
</TABLE>

The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
International Equity Fund from
the inception of the share
class. The Morgan Stanley
Capital International Europe,
Australasia and Far East (MSCI
EAFE) Index is an unmanaged,
capitalization-weighted index
that tracks stocks traded on 20
exchanges in Europe, Australia
and the Far East. Funds included
in the Lipper International
Funds Universe invest their
assets in securities with
primary trading markets outside
of the U.S. It is not possible
to invest in the Index or Lipper
Universe. The performance of
Primary A, Investor B and
Investor C Shares may vary based
on the differences in sales
loads and fees paid by the
shareholders investing in each
class.

[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]

<TABLE>
<CAPTION>
NATIONS INTERNATIONAL LIPPER INTERNATIONAL FUNDS
EQUITY FUND $21,500 UNIVERSE $25,566 MSCI EAFE INDEX $24,761
--------------------- -------------------------- -----------------------
<S> <C> <C> <C>
Jun. 3 1992 10000 10000 10000
9187 9725 9529
8961 9279 9682
1992 8590 9157 9317
9067 9946 10443
9362 10446 11502
10201 11361 12272
1993 10902 12434 12387
10800 12342 12828
11053 12474 13492
11460 12870 13514
1994 11142 12365 13385
10643 12179 13645
10878 12689 13755
11660 13307 14340
1995 12057 13581 14932
12713 14189 15376
12920 14707 15631
12872 14644 15623
1996 13038 15242 15884
12850 15418 15646
14336 17139 17689
14008 17376 17576
1997 13173 16045 16210
14876 18398 18608
15124 18535 18818
13025 15549 16155
1998 15332 18108 19508
15409 18387 19792
15959 19424 20295
16613 20185 21186
1999 21332 25381 24786
Mar. 31 2000 21500 25566 24761
</TABLE>

[INVESTOR A SHARES AT NAV** RETURN CHART]

<TABLE>
<CAPTION>
NATIONS INTERNATIONAL LIPPER INTERNATIONAL FUNDS
EQUITY FUND $22,812 UNIVERSE $25,566 MSCI EAFE INDEX $24,761
--------------------- -------------------------- -----------------------
<S> <C> <C> <C>
Jun. 3 1992 10000 10000 10000
9748 9725 9529
9508 9279 9682
1992 9115 9157 9317
9620 9946 10443
9933 10446 11502
10823 11361 12272
1993 11567 12434 12387
11459 12342 12828
11727 12474 13492
12159 12870 13514
1994 11822 12365 13385
11292 12179 13645
11542 12689 13755
12372 13307 14340
1995 12792 13581 14932
13488 14189 15376
13708 14707 15631
13657 14644 15623
1996 13834 15242 15884
13634 15418 15646
15211 17139 17689
14862 17376 17576
1997 13976 16045 16210
15784 18398 18608
16047 18535 18818
13820 15549 16155
1998 16267 18108 19508
16349 18387 19792
16933 19424 20295
17627 20185 21186
1999 22633 25381 24786
Mar. 31 2000 22812 25566 24761
</TABLE>

TOTAL RETURN (AS OF 3/31/00)

<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 12/2/91 6/3/92 6/7/93 6/17/92
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 39.85% 39.54% 31.53% 38.14% 33.14% 38.12% 37.12%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 18.94% 18.72% 16.41% 17.68% 16.95% 17.71% 17.71%
5 YEARS 15.35% 15.10% 13.75% 14.20% 13.96% 14.30% 14.30%
SINCE INCEPTION 11.22% 11.12% 10.28% 11.70% 11.70% 10.74% 10.74%
</TABLE>

*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 5.75%.

***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.

The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
16
<PAGE> 21

NATIONS INTERNATIONAL GROWTH FUND
PORTFOLIO MANAGER COMMENTARY*

<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, MR. O'NEILL SHARES HIS VIEWS ON
NATIONS INTERNATIONAL GROWTH FUND'S PERFORMANCE FOR THE
12-MONTH PERIOD ENDED MARCH 31, 2000 AND HIS OUTLOOK FOR THE
FUTURE.

PORTFOLIO MANAGEMENT PLEASE DESCRIBE THE FUND'S INVESTMENT PHILOSOPHY AND STYLE.
Brian O'Neill is Portfolio Manager The Fund's investment philosophy is that a diversified
of Nations International Growth portfolio of equity securities of established non-United
Fund and is the Principal Senior States companies can provide long-term growth of capital and
Investment Manager of the Global income. The portfolio will generally hold 50-to-80
Portfolio Team for Gartmore Global securities invested in approximately 10 sectors within
Partners, investment sub-adviser 15-to-20 markets. The manager uses a bottom-up approach to
to the Fund. selecting securities, looking for companies with high
INVESTMENT OBJECTIVE quality and sustainable earnings. The manager also seeks
The Fund seeks long-term capital companies with high growth potential over a two-year
growth by investing primarily in investment horizon, quality management teams, the ability to
equity securities of companies finance growth internally and strong financial results.
domiciled in countries outside the Throughout the investment process, the manager balances the
United States and listed on major portfolio's emphasis on growth companies with sensitivity to
stock exchanges primarily in securities' prices.
Europe and the Pacific Basin.
PERFORMANCE REVIEW PLEASE COMMENT ON FUND PERFORMANCE FOR THE PERIOD.
For the 12-month period ended Nations International Growth Fund (Investor A Shares)
March 31, 2000, Nations provided shareholders with a return of 22.18%,
International Growth Fund Investor underperforming its benchmark, the Morgan Stanley Capital
A Shares provided shareholders International Europe, Australasia, Far East (MSCI EAFE)
with a total return of 22.18%.** Index.***

HOW WOULD YOU DESCRIBE THE INTERNATIONAL ECONOMIC AND MARKET
ENVIRONMENT DURING THE FISCAL YEAR?
Economic activity -- and equity markets -- picked up around
the world in the 12-month period ended March 31, 2000. Japan
and the rest of the Pacific region led the equity market
performance earlier in the year. Continental European equity
markets strengthened towards the end of the period. Brazil
and Mexico exceeded expectations, rising by substantially
more than the developed markets in U.S. dollar terms over
the period. In general, a combination of strong economic
growth, subdued inflation, low unemployment and enthusiasm
for technology combined to
</TABLE>

*The outlook for this Fund may differ from that
presented for other Nations Funds mutual funds.

**The performance shown does not reflect the maximum
front-end sales charge of 5.75%, which may be
charged on purchases of Investor A Shares. For
standardized performance, please refer to the
Performance table. Performance shown includes the
effect of fee waivers by the investment adviser and
the co-administrator, which have the effect of
increasing total return.

Source for all statistical data -- Gartmore Global
Partners.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
17
<PAGE> 22
NATIONS INTERNATIONAL GROWTH FUND
PORTFOLIO MANAGER COMMENTARY continued

<TABLE>
<S> <C>
push markets to new highs, helping the MSCI EAFE Index
outpace the Standard & Poor's 500 Composite Stock Price
Index, in U.S. dollar terms, by a considerable margin+.
Clearly, the most noteworthy development of the past twelve
months was the emergence of so-called TMT
(telecommunications, media and technology) stocks as the
driving force of markets, while financials, pharmaceuticals
and energy stocks all lost ground.

European markets suffered early in the period as bond yields
rose and currencies weakened in anticipation of rising
interest rates in the U.S. and U.K. Elsewhere, concern about
the effects of higher interest rates on both inflation and
the currency prompted the European Central Bank to notch up
its policy rate (an administered rate similar to the Federal
Funds rate in the U.S.) to 3.25% over the period, while
interest rates in the U.K. rose to 6.0%. Against this
background, however, corporate profits also rose strongly
while GDP (gross domestic product) growth kept pace with or
exceeded expectations. This provided an underpinning to
equity markets, particularly later in the reporting period.
As in most of the rest of the world, much of the rise was
attributable to the TMT sectors. This resulted in
extraordinary outperformance in the smaller markets of
Finland and Sweden because of the dominance of Nokia (mobile
handsets manufacturer) and Ericsson (telecom infrastructure)
in their respective markets. In contrast, Switzerland was a
notable loser due to the predominance of financials and
pharmaceuticals in its stock market.

Markets across the Pacific outside Japan rose strongly
during the period, although they began losing steam in
December as concerns over interest rates and regional
politics cast shadows over investor sentiment. Australia
fared less well initially as investors, who had been
attracted by its appeal as a safe haven, shifted assets back
into the recovering markets of East Asia. However, more
recently, Australia has proved more resilient than the
region as a whole, helped by a strong economy and the fact
that valuations there were not excessively high. Also,
telecommunications and media stocks such as News Corporation
Ltd. and Cable & Wireless Optus Ltd. have outperformed over
the year. Hong Kong appears to have been less affected by
interest rate fears than in the past because the
interest-rate sensitive property and financial sectors have
been supplanted by China-related technology and telecom
plays. Nevertheless, given the low level of interest rates
generally in the region, fears of monetary tightening are
mounting as economic growth continues, bringing with it the
possibility of inflation. Australia is already on a
tightening course as its government moves to tame inflation,
now 4.2%, against a background of strong economic growth,
expected to be 4.0% this year.

The Japanese economy continued to be weak with GDP falling
1.0% in the third quarter of 1999 and a greater-than-expected
1.4% in the fourth quarter. In U.S. dollar terms, the Japanese
equity market outperformed Europe and the Pacific ex-Japan region
over the reporting period. However, this was purely a function
of currency. The market continued to be extremely narrow in focus
as investors concentrated on the "new Japan" sector. Mixed
consumption indicators suggested that consumer spending remained
subdued in January and the Bank of Japan's zero interest rate
policy remained unchanged. On a slightly brighter note, a recent
</TABLE>

+The Standard & Poor's 500 Composite Stock Price
Index is an unmanaged index of 500 widely held common
stocks. It is unavailable for investment.

18
<PAGE> 23
NATIONS INTERNATIONAL GROWTH FUND
PORTFOLIO MANAGER COMMENTARY continued

<TABLE>
<S> <C>
surge in machinery orders points to better times ahead and
capital spending is expected to turn positive from
September.

The strongest earnings signals appear now to be coming out
of Latin America. The huge rises in the dominant markets of
Brazil and Mexico over the past 12 months demonstrated the
extraordinary potential of emerging markets when prudent
government policy, falling interest rates and global
economic growth combine to drive up corporate earnings. In
both countries, interest rates broke through the 20% barrier
in the final quarter of 1999 and Brazil recently initiated a
further 0.50% cut in late March.

WHAT PARTICULAR STOCKS PROVED ESPECIALLY FAVORABLE FOR THE
FUND?++
The Fund's bottom-up investment strategy emphasizes growth
stocks. In general, the Fund's telecommunications, media and
technology investments performed strongly over the 12-month
period. These included Sweden's Ericsson and Germany's
Mannesmann AG (recently acquired by Vodafone Airtouch of the
U.K.), Australia's News Corporation and Cable & Wireless
Optus.

WHAT IMPACT DID CURRENCY HAVE ON FUND PERFORMANCE?
The biggest currency-related impact to Fund performance was
a strong yen which helped the Fund. However, a continued
weakening of the euro over the period offset much of the
benefit the Fund derived from yen strength.

WHAT IS YOUR INTERNATIONAL ECONOMIC AND MARKET OUTLOOK FOR
THE YEAR AHEAD?
Accelerating economic activity should continue to support
international equity markets over the next 12 months. Rising
interest rates are a concern, particularly in Europe, and
there may be some inflationary pressures. However, firm
earnings growth is expected in all regions -- even in Japan.
Specifically, we are projecting increases in corporate
earnings of 17% for Continental Europe and 12% for the U.K.
in 2000. We have raised our estimated GDP growth rate for
the U.K. in 2000 from 2.7% to 2.9%, while in Continental
Europe we are forecasting GDP growth of 3.1%. In Japan, we
continue to wait for some sign of an end to deflation.
Moribund as it appears relative to other regions, the
Japanese economy should show some life this year with
estimated GDP growth of 1.0%, rising to 2.0% in 2001. While
markets of the Pacific ex-Japan region have recently fallen
back, corporate earnings growth should continue and we are
encouraged by the progress in corporate restructuring,
particularly in Korea. In Latin America, the recent
upgrading of Mexico's debt and improved outlook for Brazil's
can only speed the region's economic progress. Overall, the
consensus forecast for earnings growth in the region is for
27% in 2000, rising from 23.5% in 1999. However, we believe
there is room for unexpected positive earnings, given the
falling interest rate environment and record number of
prudent government economic policies.

WHAT INVESTMENT OPPORTUNITIES DO YOU ANTICIPATE IN THIS
MARKET ENVIRONMENT?
From a bottom-up perspective, the influence of technology,
e-commerce in particular, will remain a key theme in stock
markets. International markets offer a
</TABLE>

++Portfolio holdings and characteristics are subject
to change and may not be representative of current
holdings and characteristics.

19
<PAGE> 24
NATIONS INTERNATIONAL GROWTH FUND
PORTFOLIO MANAGER COMMENTARY continued

<TABLE>
<S> <C>
wide range of opportunities, from telecommunications
companies with expertise in fixed-line and mobile
infrastructure to specialty semiconductor manufacturers. In
addition, companies engaged in large-scale buying and
selling in sectors such as oil, pharmaceuticals, utilities
and electronic component manufacturing should stand to
benefit from emerging business-to-business (B2B) strategies,
facilitated by electronic intermediaries. In general, a
buoyant global economy should provide a positive tone to
equity markets.
HOW ARE YOU POSITIONING THE FUND TO TAKE ADVANTAGE OF THESE
OPPORTUNITIES?
We are maintaining an overweight position in technology and
telecom stocks. However, we generally avoid so-called direct
plays on the internet such as internet service providers
(ISPs) and dot.coms with little track record and heavy cash
demands. Instead we focus on the indirect plays, those
companies which stand to benefit from the enormous
expenditure companies will have to make over the next
several years as they put e-commerce strategies in place.
These include both fixed-line and mobile telecom companies
providing everything from handsets to infrastructures, as
well as the companies that provide software and hardware to
facilitate electronic communication. At the same time, our
bottom-up stock selection process will continue to identify
companies in other sectors with strong franchises and the
prospect of positive unexpected earnings.
</TABLE>

20
<PAGE> 25

NATIONS INTERNATIONAL GROWTH FUND

PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)

[PIE CHART]

<TABLE>
<S> <C>
Japan 22.3%
United Kingdom 19.2%
Sweden 6.8%
Australia 6.8%
Germany 5.8%
France 4.8%
Switzerland 4.8%
Italy 3.3%
Spain 3%
Ireland 2.7%
Other 20.5%
</TABLE>

<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Matsushita Electric Industrial
Company, Ltd. 5.2%
-------------------------------------------------
2 Sharp Corporation 4.1%
-------------------------------------------------
3 Kao Corporation 3.5%
-------------------------------------------------
4 Nippon Telegraph & Telephone Company 3.5%
-------------------------------------------------
5 Ericsson (L.M.) Telephone Company
Series B 3.0%
-------------------------------------------------
6 Vodafone AirTouch plc 2.9%
-------------------------------------------------
7 News Corporation Ltd. 2.7%
-------------------------------------------------
8 Smithkline Beecham plc 2.5%
-------------------------------------------------
9 Kudelski SA 2.4%
-------------------------------------------------
10 Bank of Scotland Ord. 2.2%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>

PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.

21
<PAGE> 26

NATIONS INTERNATIONAL GROWTH FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT

AVERAGE ANNUAL TOTAL RETURN
Investor A Shares

<TABLE>
<CAPTION>
10-YEAR NAV** MOP*
<S> <C> <C>
(3/31/90
through
3/31/00) 11.90% 11.69%
</TABLE>

The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
International Growth Fund over
the last 10 years. The Morgan
Stanley Capital International
Europe, Australasia and Far East
(MSCI EAFE) Index is an
unmanaged, capitalization-
weighted index that tracks
stocks traded on 20 exchanges in
Europe, Australia and the Far
East. Funds included in the
Lipper International Funds
Universe invest their assets in
securities with primary trading
markets outside of the U.S. It
is not possible to invest in the
Index or Lipper Universe. The
performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.

[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]

<TABLE>
<CAPTION>
INTERNATIONAL GROWTH FUND INTERNATIONAL GROWTH MSCI LIPPER INTERNATIONAL FUNDS
INVESTOR A $22,365 EAFE INDEX $25,212 UNIVERSE $28,380
------------------------- ------------------------- --------------------------
<S> <C> <C> <C>
Mar. 31 1990 9425 10000 10000
10409 10964 10815
8147 8647 8926
1990 8596 9567 9372
9738 10286 10063
9451 9733 9737
9853 10575 10450
1991 9612 10761 10633
9596 9493 10335
10034 9703 10795
9314 9859 10300
1992 9283 9487 10165
9957 10633 11041
10207 11711 11595
10983 12496 12611
1993 11928 12672 13803
12047 13061 13701
12031 13738 13847
12538 13760 14286
1994 11895 13629 13726
11757 13893 13519
12488 14006 14085
13266 14601 14771
1995 13527 15204 15076
14213 15656 15751
14917 15916 16326
14797 15908 16256
1996 15002 16173 16919
15063 15931 17115
16764 18011 19025
16553 17896 19228
1997 15283 16505 17811
17287 18947 20423
17745 19161 20574
15143 16450 17260
1998 18317 19863 20101
18305 20153 20410
18867 20665 21562
19202 21572 22407
1999 23074 25237 28174
Mar. 31 2000 22365 25212 28380
</TABLE>

[INVESTOR A SHARES AT NAV** RETURN CHART]

<TABLE>
<CAPTION>
INTERNATIONAL GROWTH FUND INTERNATIONAL GROWTH MSCI LIPPER INTERNATIONAL FUNDS
INVESTOR A $23,730 EAFE INDEX $25,212 UNIVERSE $28,380
------------------------- ------------------------- --------------------------
<S> <C> <C> <C>
Mar. 31 1990 10000 10000 10000
11044 10964 10815
8644 8647 8926
1990 9120 9567 9372
10332 10286 10063
10028 9733 9737
10454 10575 10450
1991 10198 10761 10633
10182 9493 10335
10646 9703 10795
9883 9859 10300
1992 9849 9487 10165
10564 10633 11041
10830 11711 11595
11653 12496 12611
1993 12656 12672 13803
12782 13061 13701
12765 13738 13847
13303 13760 14286
1994 12620 13629 13726
12474 13893 13519
13250 14006 14085
14075 14601 14771
1995 14353 15204 15076
15080 15656 15751
15827 15916 16326
15700 15908 16256
1996 15917 16173 16919
15982 15931 17115
17787 18011 19025
17562 17896 19228
1997 16215 16505 17811
18341 18947 20423
18827 19161 20574
16067 16450 17260
1998 19435 19863 20101
19421 20153 20410
20018 20665 21562
20374 21572 22407
1999 24481 25237 28174
Mar. 31 2000 23730 25212 28380
</TABLE>

TOTAL RETURN (AS OF 3/31/00)

<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 7/26/93 1/2/68 7/1/96 9/19/97
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 22.22% 22.18% 15.16% 20.66% 16.19% 20.67% 19.77%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 14.26% 14.08% 11.86% 12.96% 12.34%
5 YEARS 13.94% 13.72% 12.39%
10 YEARS 9.02% 8.38%
SINCE INCEPTION 12.48% 11.90% 11.69% 10.37% 9.90% 13.11% 13.11%
</TABLE>

*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 5.75%.

***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.

The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
22
<PAGE> 27

NATIONS EMERGING MARKETS FUND
PORTFOLIO MANAGER COMMENTARY*

<TABLE>
<S> <C>
IN THE FOLLOWING INTERVIEW, MR. PALMER SHARES HIS VIEWS ON
NATIONS EMERGING MARKETS FUND'S PERFORMANCE FOR THE 12-MONTH
PERIOD ENDED MARCH 31, 2000 AND HIS OUTLOOK FOR THE FUTURE.

PORTFOLIO MANAGEMENT PLEASE DESCRIBE THE FUND'S INVESTMENT PHILOSOPHY AND STYLE.
Christopher Palmer is Principal The Fund invests in growth opportunities in emerging market
Portfolio Manager of Nations equities. We believe this is best accomplished by
Emerging Markets Fund and is a identifying companies whose rates of earnings growth will
senior investment manager on the exceed market expectations. Sources of unexpected growth may
Emerging Markets Team for Gartmore include strong national or regional franchises, strategies,
Global Partners, investment management or the ability to finance business objectives.
sub-adviser to the Fund. The markets in which we invest are generally those where
INVESTMENT OBJECTIVE economic and political conditions provide what we think is
The Fund seeks long-term capital an acceptable level of risk and, at a macro-economic level,
growth by investing primarily in will attract rising expectations of growth.
equity securities of companies in
emerging market countries, such as PLEASE COMMENT ON FUND PERFORMANCE FOR THE PERIOD.
those in Latin America, Eastern Nations Emerging Markets Fund Investor A Shares returned
Europe, the Pacific Basin, the Far 93.33%, substantially outperforming its peer group, the
East and India. Lipper Emerging Markets Funds Universe, which returned
PERFORMANCE REVIEW 65.41%.***
For the 12-month period ended
March 31, 2000, Nations Emerging HOW WOULD YOU DESCRIBE THE ECONOMIC AND MARKET CONDITIONS IN
Markets Fund Investor A Shares EMERGING MARKETS DURING THE FISCAL YEAR?
provided shareholders with a total Emerging markets had an extraordinarily strong year over the
return of 93.33%.** 12 months ended March 31, 2000, topping virtually all other
asset classes and demonstrating a remarkable resilience
after the problems they faced during the previous 12 months.
Underpinned by an upturn in global growth, the emerging
markets also withstood the pressure of rising interest rates
in the U.S. and Europe. This was particularly true of Latin
America where interest rates in the dominant markets of
Brazil and Mexico broke through the 20% level in December
and are still headed lower, with Brazil initiating a 0.50%
cut in March.
</TABLE>

*The outlook for this Fund may differ from that
presented for other Nations Funds mutual funds.

**The performance shown does not reflect the maximum
front-end sales charge of 5.75%, which may be
charged on purchases of Investor A Shares. For
standardized performance, please refer to the
Performance table. Performance shown includes the
effect of fee waivers by the investment adviser and
the co-administrator, which have the effect of
increasing total return.

***Lipper Inc. is an independent mutual fund
performance monitor. Funds included in the Lipper
Emerging Markets Fund Universe seek long-term capital
appreciation by investing at least 65% of their
total assets in emerging market equity securities.

Source for all statistical data -- Gartmore Global
Partners

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
23
<PAGE> 28
NATIONS EMERGING MARKETS FUND
PORTFOLIO MANAGER COMMENTARY continued

<TABLE>
<S> <C>
Latin America's performance stands out, thanks to the
reforming efforts of governments in Brazil and Mexico, the
attractiveness of fast-growing cellular and
Internet-enabling telephone companies and stronger economic
growth in both economies. Mexico consistently outran growth
estimates throughout 1999 as steady growth in industrial
output was augmented by continuous improvement in domestic
consumption. In Brazil, sentiment was buoyed by the
successful completion in December of a $4 billion domestic
debt rollover, lower-than-expected inflation, increasing
agricultural output and rising industrial production. The
recent upgrade by Moody's Investors Service, Inc. of Mexican
sovereign debt and the improved outlook for Brazil's foreign
currency debt also has supported this sentiment.

Elsewhere, Asia moved higher early in the period but fell
back more recently as interest rate concerns and
profit-taking took their toll. Nevertheless, technology and
telecommunications stocks have proved strong, particularly
in Hong Kong, where they are perceived to be less sensitive
to interest rates. They also are the beneficiaries of the
potential explosive growth in new technology, cellular and
Internet use in China. The leading semiconductor
manufacturers of Taiwan and Korea continue to attract
investor attention. A strong performance by India was helped
by a rapidly growing internet market and strong technology
and telecom sectors. The EMEA (Europe, Middle East, Africa)
region has been mixed, with countries like Turkey and Israel
rising, while Greece has pulled back from its highs of the
previous period.

WHAT PARTICULAR STOCKS WERE FAVORABLE FOR THE FUND?+
Among the Fund's best performing individual stocks were
China Telecom (China), Tatneft (Russian oil and gas),
Samsung Electronics (Korea), Taiwan Semiconductor
Manufacturing (Taiwan), Pao de Acucar (Brazilian retail) and
Carso Global Telecom (Mexico).

WHAT IS YOUR OUTLOOK FOR THE EMERGING MARKETS FOR THE COMING
YEAR?
We forecast that corporate earnings in Asia should double in
2000. In Latin America, earnings should also be strong
against a background of buoyant economic growth. In terms of
risks and rewards to investors, the two regions are finely
balanced. Asia offers investors potentially greater rewards
but with higher price multiples than in Latin America. The
risks also are higher. Latin America is less expensive and
therefore less risky, although the growth potential is
probably not as high as it is in Asia. The benefit to
investors comes from the fact that the Fund can continue to
diversify into both regions, each of which offers excellent
opportunities. In India, prospects remain bright for the
country's globally competitive software industry. In our
view, the European emerging markets also remain on track to
generate strong growth. With global economic activity
unlikely to be derailed by a modest deceleration in U.S.
growth, emerging markets should continue to stand out as
attractive destinations for international capital.
</TABLE>

+Portfolio holdings and characteristics are subject
to change and may not be representative of current
holdings and characteristics.

24
<PAGE> 29
NATIONS EMERGING MARKETS FUND
PORTFOLIO MANAGER COMMENTARY continued

<TABLE>
<S> <C>
WHAT INVESTMENT OPPORTUNITIES DO YOU ANTICIPATE?
We continue to believe that restructuring companies and
sector plays, such as telecommunications and technology,
will offer interesting investment opportunities in regions
where growth prospects are recovering and appear to be
sustainable. Content providers for internet-related media
companies will warrant attention, as will outsourcing
companies involved in the manufacture of cellular handsets
as well as telecoms and computer-related equipment.
Traditional commodity companies remain attractive, as do
some pharmaceutical companies.
HOW ARE YOU POSITIONING THE FUND TO TAKE ADVANTAGE OF THESE
OPPORTUNITIES?
We are placing greater emphasis on bottom-up stock
selection, seeking out attractively valued new technology
and telecom enterprises with unanticipated earnings
potential. However, traditional cyclical companies which
appear set for unexpected positive earnings, such as
platinum and iron ore producers, continue to warrant
investment. Finally, we have taken a small position in
pharmaceuticals, although the sector is only a small segment
of the emerging markets.
</TABLE>

25
<PAGE> 30

NATIONS EMERGING MARKETS FUND

PORTFOLIO BREAKDOWN (AS A % OF NET ASSETS AS OF 3/31/00)

[PIE CHART]

<TABLE>
<S> <C>
Israel 4.5%
Greece 4.7%
Malaysia 4.6%
India 5.3%
South Africa 5.5%
Hong Kong 7.5%
Taiwan 8.9%
Mexico 11%
Other 18.5%
Brazil 13.5%
South Korea 16%
</TABLE>

<TABLE>
<C> <S> <C>
TOP 10 HOLDINGS
-------------------------------------------------
1 Samsung Electronics 5.1%
-------------------------------------------------
2 Carso Global Telecom, ADR 3.9%
-------------------------------------------------
3 SK Telecom Company, ADR 3.1%
-------------------------------------------------
4 Taiwan Semiconductor SP, ADR 2.8%
-------------------------------------------------
5 LG Electronics Company 2.5%
-------------------------------------------------
6 China Telecom (HK) Ltd 2.3%
-------------------------------------------------
7 Satyam Infoway Limited, ADR 2.2%
-------------------------------------------------
8 Hutchison Whampoa 2.2%
-------------------------------------------------
9 Pacific Century CyberWorks Ltd 2.1%
-------------------------------------------------
10 Reliance Industries Ltd., GDR 2.0%
-------------------------------------------------
THE TOP 10 HOLDINGS ARE PRESENTED TO ILLUSTRATE
EXAMPLES OF THE INDUSTRIES AND SECURITIES IN
WHICH THE FUND MAY INVEST.
</TABLE>

PORTFOLIO HOLDINGS WERE CURRENT
AS OF MARCH 31, 2000, ARE
SUBJECT TO CHANGE AND MAY NOT BE
REPRESENTATIVE OF CURRENT HOLDINGS.

26
<PAGE> 31

NATIONS EMERGING MARKETS FUND
PERFORMANCE
GROWTH OF A $10,000 INVESTMENT

AVERAGE ANNUAL TOTAL RETURN
Investor A Shares

<TABLE>
<CAPTION>
SINCE INCEPTION NAV** MOP*
<S> <C> <C>
(6/30/95
through
3/31/00) 10.47% 9.10%
</TABLE>

The charts to the left show the
growth in value of a
hypothetical $10,000 investment
in Investor A Shares of Nations
Emerging Markets Fund from the
inception of the share class.
The IFC Investables Index is an
unmanaged, capitalization
weighted index that tracks more
than 1,400 stocks in 25 emerging
markets in Asia, Latin America,
Eastern Europe, Africa and the
Middle East. Funds included in
the Lipper Emerging Markets
Funds Universe seek long-term
capital appreciation by
investing at least 65% of their
total assets in emerging markets
(defined by a country's GNP per
capita) equity securities. It is
not possible to invest in the
Index or Lipper Universe. The
performance of Primary A,
Investor B and Investor C Shares
may vary based on the
differences in sales loads and
fees paid by the shareholders
investing in each class.

[INVESTOR A SHARES AT MOP* RETURN CHART] [CHART LEGEND]

<TABLE>
<CAPTION>
NATIONS EMERGING MARKETS LIPPER EMERGING MARKETS IFC INVESTABLES INDEX
FUND $15,134 FUNDS UNIVERSE $14,343 $12,136
------------------------ ----------------------- ---------------------
<S> <C> <C> <C>
June 30 1995 9425 10000 10000
9302 10123 9966
1995 9209 9824 9874
9727 10617 10620
10120 11246 11074
9780 10936 10825
1996 9992 11099 10797
10870 12175 11826
11901 13468 12539
11545 13131 11408
1997 9672 10950 9201
10153 11540 9855
8176 9267 7764
6193 7089 6079
1998 7180 8035 7176
7828 8665 7949
9947 10845 9839
9502 10128 9528
1999 14080 13799 11976
Mar 31 2000 15134 14343 12136
</TABLE>

[INVESTOR A SHARES AT NAV** RETURN CHART]

<TABLE>
<CAPTION>
NATIONS EMERGING MARKETS LIPPER EMERGING MARKETS IFC INVESTABLES INDEX
FUND $16,058 FUNDS UNIVERSE $14,343 $12,136
------------------------ ----------------------- ---------------------
<S> <C> <C> <C>
June 30 1995 10000 10000 10000
9870 10123 9966
1995 9770 9824 9874
10320 10617 10620
10737 11246 11074
10377 10936 10825
1996 10602 11099 10797
11534 12175 11826
12627 13468 12539
12249 13131 11408
1997 10263 10950 9201
10773 11540 9855
8675 9267 7764
6571 7089 6079
1998 7618 8035 7176
8306 8665 7949
10554 10845 9839
10083 10128 9528
1999 14939 13799 11976
Mar 31 2000 16058 14343 12136
</TABLE>

TOTAL RETURN (AS OF 3/31/00)

<TABLE>
<CAPTION>
INVESTOR A INVESTOR B INVESTOR C
PRIMARY A NAV** MOP* NAV** CDSC*** NAV** CDSC***
<S> <C> <C> <C> <C> <C> <C> <C>
Inception date 6/30/95 6/30/95 6/30/95 6/30/95
---------------------------------------------------------------------------------------------------------------------------------
1 YEAR PERFORMANCE 93.71% 93.33% 82.28% 91.74% 86.74% 91.73% 90.73%
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS
3 YEARS 11.96% 11.66% 9.49% 10.84% 10.02% 10.90% 10.90%
SINCE INCEPTION 10.76% 10.47% 9.10% 9.65% 9.35% 9.80% 9.80%
</TABLE>

*Figures at maximum offering price (MOP) reflect the maximum front-end sales
charge of 5.75%.

***Figures at CDSC reflect the maximum applicable contingent deferred sales
charge.

The performance shown includes the effect of fee waivers by the investment
adviser and the co-administrator, which have the effect of increasing total
return.
27
<PAGE> 32

NATIONS FUNDS
Nations International Value Fund
STATEMENT OF NET ASSETS MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<S> <C> <C>
INVESTMENT COMPANIES -- 98.4%
Investment in Nations Master
Investment Trust, International
Value Master Portfolio*............. $838,642
--------
TOTAL INVESTMENTS.............. 98.4% 838,642
--------
OTHER ASSETS AND
LIABILITIES (NET)............ 1.6%
Receivable for Fund shares sold....... $ 14,263
Payable for Fund shares redeemed...... (463)
Administration fee payable............ (114)
Shareholder servicing
and distribution fees payable...... (91)
Accrued Trustees'/Directors'
fees and expenses.................. (15)
Accrued expenses and other
liabilities......................... (260)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................... 13,320
--------
NET ASSETS..................... 100.0% $851,962
========
NET ASSETS CONSIST OF:
Accumulated net realized gain on
investment.......................... $ 49,710
Net unrealized appreciation of
investment.......................... 42,213
Paid-in capital....................... 760,039
--------
NET ASSETS............................ $851,962
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($600,589,013 / 31,974,754
shares outstanding)................. $18.78
======
INVESTOR A SHARES:
Net asset value and redemption
price per share ($186,648,936 /
9,946,093 shares outstanding)....... $18.77
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $19.92
</TABLE>

<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C>
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($50,998,904 / 2,735,485
shares outstanding)................. $18.64
======
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($13,724,708 / 735,941 shares
outstanding)........................ $18.65
======
</TABLE>

---------------

* The financial statements of the International Value Master Portfolio,
including its portfolio of investments, are included elsewhere within this
report and should be read in conjunction with the International Value Fund's
financial statements.

+ The redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.

SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33

NATIONS FUNDS
Nations International Equity Fund
STATEMENT OF NET ASSETS MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<S> <C> <C>
INVESTMENT COMPANIES -- 96.9%
Investment in Nations Master
Investment Trust, International
Equity Master Portfolio*............ $913,638
--------
TOTAL INVESTMENTS.............. 96.9% 913,638
--------
OTHER ASSETS AND
LIABILITIES (NET)............ 3.1%
Receivable for Fund shares sold....... $ 31,262
Other receivables..................... 246
Payable for Fund shares redeemed...... (2,012)
Administration fee payable............ (135)
Shareholder servicing and
distribution fees payable........... (37)
Accrued Trustees'/Directors'
fees and expenses................... (60)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)............ 100.0% 29,264
--------
NET ASSETS............................ $942,902
========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment income................... $ (4,213)
Accumulated net realized gain on
investment.......................... 57,223
Net unrealized appreciation of
investment.......................... 185,318
Paid-in capital....................... 704,574
--------
NET ASSETS............................ $942,902
========
</TABLE>

<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($866,731,323 / 51,784,624 shares
outstanding)........................ $16.74
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($43,111,512 / 2,611,087
shares outstanding)................. $16.51
======
Maximum sales charge.................. 5.75%
Maximum offering price per share...... $17.52
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($32,072,746 / 1,997,210
shares outstanding)................. $16.06
======
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($986,856 / 62,776 shares
outstanding)........................ $15.72
======
</TABLE>

---------------

* The financial statements of the International Equity Master Portfolio,
including its portfolio of investments, are included elsewhere within this
report and should be read in conjunction with the International Equity Fund's
financial statements.

+ The redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.

SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34

NATIONS FUNDS
Nations International Growth Fund
STATEMENT OF NET ASSETS MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 91.8%
AUSTRALIA -- 6.8%
250,000 Australia and New Zealand Banking
Group.............................. $ 1,578
300,000 Cable and Wireless Optus Ltd.++...... 1,202
275,000 Cellnet Telecommunications........... 534
350,000 Colonial, Ltd. ...................... 1,608
250,000 News Corporation Ltd. ............... 3,493
411,768 Southern Pacific Petroleum++......... 427
--------
8,842
--------
BRAZIL -- 2.0%
100,000 Tele Norte Leste Participacoes SA,
ADR................................ 2,663
--------
CANADA -- 1.2%
100,000 Canada Life Financial Corporation.... 1,526
--------
FINLAND -- 0.5%
10,000 Sonera Oyj........................... 682
--------
FRANCE -- 4.8%
40,000 Accor SA............................. 1,569
15,000 Carrefour SA......................... 1,922
2,000 L'Oreal.............................. 1,292
40,000 Sanofi-Synthelabo++.................. 1,525
--------
6,308
--------
GERMANY -- 5.8%
50,000 Bayersche Motoren Werke AG........... 1,577
20,000 Deutsch Pfandbrief-Und Hypothekenbank
AG (DePfa-Bank).................... 1,914
32,000 Henkel Kgaa.......................... 1,843
4,000 SAP AG............................... 2,243
--------
7,577
--------
IRELAND -- 2.7%
250,000 Bank of Ireland...................... 1,785
100,000 CRH plc.............................. 1,794
--------
3,579
--------
ITALY -- 3.3%
500,000 Olivetti SpA++....................... 1,794
200,000 Telecom Italia Mobile SpA++.......... 2,454
--------
4,248
--------
JAPAN -- 22.3%
120,000 Daiwa Securities Group Inc. ......... 2,258
50 DDI Corporation...................... 409
20,000 Fujitsu Ltd. ........................ 614
25,000 Ito-Yokado Company Ltd. ............. 1,789
150,000 Kao Corporation...................... 4,592
225,000 Matsushita Electric Industrial
Company, Ltd. ..................... 6,735
11,000 Murata Manufacturing Company,
Ltd. .............................. 2,676
286 Nippon Telegraph & Telephone
Company............................ 4,545
250,000 Sharp Corporation.................... 5,351
--------
28,969
--------
</TABLE>

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
MEXICO -- 1.4%
75,000 Walmart de Mexico SA de CV, ADR++.... $ 1,875
--------
NETHERLANDS -- 2.5%
25,000 Getronics NV++....................... 1,911
30,000 United Pan-Europe Communications
NV++............................... 1,402
--------
3,313
--------
PORTUGAL -- 2.0%
200,000 Portugal Telecom SA (REGD)........... 2,565
--------
SINGAPORE -- 1.5%
150,000 DBS Group Holding Ltd. .............. 1,982
--------
SOUTH AFRICA -- 1.2%
1,200,000 Sanlam............................... 1,524
--------
SPAIN -- 3.0%
90,000 Gas Natural++........................ 1,756
100,000 Repsol SA............................ 2,193
--------
3,949
--------
SWEDEN -- 6.8%
60,000 Atlas Copco AB, Series "A"........... 1,458
42,000 Atlas Copco AB, Series "B"........... 977
45,000 Ericsson (L.M.) Telephone Company,
Series B++......................... 3,953
40,000 SBS Broadcasting SA++................ 2,460
--------
8,848
--------
SWITZERLAND -- 4.8%
250 Kudelski SA++........................ 3,120
1,000 Nestle SA (REGD)..................... 1,792
1,000 Novartis AG (REGD)................... 1,368
--------
6,280
--------
UNITED KINGDOM -- 19.2%
160,000 Amvescap plc......................... 2,176
600,000 Azlan Group Ord.++................... 1,311
250,000 Bank of Scotland Ord. ............... 2,831
250,000 Granada Group plc.................... 2,682
40,000 Logica............................... 1,353
600,000 Securicor Ord.++..................... 1,211
250,000 Shell Transport and Trading Company
Ord. .............................. 2,074
245,000 Smithkline Beecham plc............... 3,236
200,000 Thus plc++........................... 1,523
684,469 Vodafone AirTouch plc................ 3,805
150,000 WPP Group plc........................ 2,637
--------
24,839
--------
TOTAL COMMON STOCKS
(Cost $74,975)..................... 119,569
--------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS FUNDS
Nations International Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 12.3%
(Cost $15,979)
15,979 Nations Cash Reserves#................. $ 15,979
--------
TOTAL INVESTMENTS
(Cost $90,954*)............... 104.1% 135,548
--------
OTHER ASSETS AND LIABILITIES
(NET)......................... (4.1)%
Cash................................... $ 335
Receivable for investment
securities sold...................... 6,685
Receivable for Fund shares sold........ 11,618
Dividends receivable................... 297
Interest receivable.................... 7
Collateral on securities loaned........ (15,979)
Payable for Fund shares redeemed....... (1,230)
Investment advisory fee payable........ (104)
Administration fee payable............. (28)
Shareholder servicing and
distribution fees payable............ (9)
Payable for investment securities
purchased............................ (6,864)
Accrued Trustees'/Directors'
fees and expenses.................... (16)
Accrued expenses and other
liabilities.......................... (54)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ (5,342)
--------
NET ASSETS...................... 100.0% $130,206
========
NET ASSETS CONSIST OF:
Net investment loss.................... $ (256)
Accumulated net realized gain on
investments sold, foreign
currencies and net other assets...... 16,367
Net unrealized appreciation of
investments, foreign currencies
and net other assets................. 44,571
Paid-in capital........................ 69,524
--------
NET ASSETS............................. $130,206
========
</TABLE>

<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
-----------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($96,459,769 / 6,786,026 shares
outstanding)......................... $14.21
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($31,710,025 / 2,284,872
shares outstanding).................. $13.88
======
Maximum sales charge................... 5.75%
Maximum offering price per share....... $14.73
INVESTOR B SHARES:
Net asset value and offering price per
share+ ($1,493,168 / 111,280 shares
outstanding)......................... $13.42
======
INVESTOR C SHARES:
Net asset value and offering price per
share+ ($542,517 / 38,970 shares
outstanding)......................... $13.92
======
</TABLE>

---------------

* Federal Income Tax Information: Net unrealized appreciation of $44,594 on
investment securities was comprised of gross appreciation of $45,918 and
gross depreciation of $1,324 for Federal income tax purposes. At March 31,
2000, the aggregate cost of securities for Federal income tax purposes was
$90,954.

++ Non-income producing security.

+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.

# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Represents cash collateral received from securities lending activity (Note
7).

ADR -- American Depository Receipt

SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS FUNDS
Nations International Growth Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

At March 31, 2000, sector diversification was as follows (unaudited):

<TABLE>
% OF NET VALUE
SECTOR DIVERSIFICATION ASSETS (000)
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Common stocks:
Telecommunications.......................................... 20.1% $ 26,129
Electronics................................................. 8.0 10,382
Banking..................................................... 7.7 10,090
Media....................................................... 5.6 7,355
Electrical equipment........................................ 5.2 6,735
Oil and gas................................................. 5.0 6,450
Drugs....................................................... 4.7 6,129
Cosmetics and toiletries.................................... 4.5 5,884
Insurance................................................... 3.6 4,658
Financial services.......................................... 3.4 4,434
Diversified................................................. 3.0 3,893
Retail -- Food.............................................. 2.9 3,711
Electrical components....................................... 2.1 2,676
Advertising and marketing services.......................... 2.0 2,637
Machinery and engineering................................... 1.9 2,435
Computer software........................................... 1.7 2,243
Retail -- General........................................... 1.4 1,875
Chemicals -- Basic.......................................... 1.4 1,843
Construction................................................ 1.4 1,794
Food producers.............................................. 1.4 1,792
Other....................................................... 4.8 6,424
---------- -------------
TOTAL COMMON STOCKS......................................... 91.8 119,569
INVESTMENT COMPANIES........................................ 12.3 15,979
---------- -------------
TOTAL INVESTMENTS........................................... 104.1 135,548
OTHER ASSETS AND LIABILITIES (NET).......................... (4.1) (5,342)
---------- -------------
NET ASSETS.................................................. 100.0% $ 130,206
========== ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37

NATIONS FUNDS
Nations Emerging Markets Fund
STATEMENT OF NET ASSETS MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.8%
ARGENTINA -- 2.1%
23,934 Banco de Galicia, ADR............... $ 485
48,525 PC Holdings SA, ADR++............... 831
--------
1,316
--------
BRAZIL -- 13.5%
96,415,518 Banco Bradesco Preferred............ 798
840,000 Brahma Cia Cervejaria Pref NPV...... 674
17,800 Cemig CIA Energ, ADR................ 310
20,400 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar, ADR.......... 729
24,400 Companhia Vale do Rio Doce, ADR..... 650
42,000 Embratel Participacoes SA, ADR...... 1,076
1,335,000 Petrol Brasileiros Preferred NPV.... 363
16,300 Petrol Brasileiros, ADR............. 444
12,600 Tele Centro Sul Participacoes SA,
ADR............................... 1,021
36,600 Tele Norte Leste Participacoes SA,
ADR............................... 974
27,200 Telecomunicacoes de Sao Paulo SA,
ADR............................... 808
11,000 Telesp Celular Participacoes SA,
ADR............................... 624
--------
8,471
--------
CHILE -- 0.5%
6,371 Enersis SA, ADR..................... 129
8,900 Telecom De Chile, ADR............... 202
--------
331
--------
GREECE -- 4.7%
11,000 Alpha Credit Bank................... 741
6,000 EFG Eurobank........................ 198
18,523 Hellenic Telecommunications
Organization SA (OTE)............. 527
30,000 National Bank of Greece SA, ADR++... 411
38,000 STET Hellas Telecommunications SA,
ADR++............................. 1,093
--------
2,970
--------
HONG KONG -- 7.5%
9,500 AsiaInfo Holdings, Inc.++........... 575
165,000 China Telecom (HK) Ltd.++........... 1,446
76,000 Hutchison Whampoa................... 1,371
560,000 Pacific Century CyberWorks Ltd.++... 1,309
--------
4,701
--------
HUNGARY -- 2.0%
14,900 Matav, ADR.......................... 665
9,000 Richter Geoeon, GDR................. 592
--------
1,257
--------
INDIA -- 5.3%
12,000 ICICI Bank Ltd., ADR++.............. 176
23,000 Icici Ltd., ADR++................... 518
55,000 Reliance Industries Ltd., GDR....... 1,233
26,100 Satyam Infoway Limited, ADR......... 1,399
--------
3,326
--------
</TABLE>

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
ISRAEL -- 4.5%
19,000 ECI Telecom Ltd. ................... $ 596
7,000 Orbotech++.......................... 595
14,500 Orckit Communications, ADR++........ 971
18,000 Teva Pharmaceutical Industries Ltd.,
ADR............................... 671
--------
2,833
--------
MALAYSIA -- 4.6%
211,600 Ammb Holdings Berhad................ 791
93,000 Commerce Asset-Holding Berhad....... 267
110,000 Globetronics Technology Berhad...... 454
190,000 Mesiniaga Berhad++.................. 795
150,000 Telekom Malaysia Berhad............. 616
--------
2,923
--------
MEXICO -- 11.0%
365,200 Carso Global Telecom, ADR........... 2,465
38,500 Consorcio Ara, ADR++(+)............. 564
76,800 Grupo Carso SA de CV++.............. 576
25,000 Grupo Elektra, SA de CV, GDR++...... 319
29,000 Grupo IMSA SA de CV, ADR............ 372
200,000 Grupo Industrial Bimbo++............ 336
240,000 Grupo Modelo........................ 520
8,700 Grupo Televisa, GDR++............... 592
48,000 Walmart de Mexico SA de CV, ADR++... 1,200
--------
6,944
--------
POLAND -- 3.2%
29,500 Agora SA, GDR++..................... 826
41,883 Elektrim++.......................... 609
64,000 Telekomunikacja, GDR++.............. 586
--------
2,021
--------
RUSSIA -- 1.4%
68,000 Tatneft, ADR........................ 893
--------
SOUTH AFRICA -- 5.5%
29,000 Anglo American Platinum
Corporation....................... 771
25,500 De Beers Centenary Link Units....... 596
122,000 Dimension Data Holdings Limited..... 1,122
21,000 Nedcor Limited...................... 427
434,000 Sanlam.............................. 551
--------
3,467
--------
SOUTH KOREA -- 16.0%
42,000 Hyundai Electronics Industries
Company++......................... 935
92,000 Hyundai Motor Company Ltd., GDR++... 538
14,200 Korea Telecom Corporation, ADR...... 621
6,500 Korea Telecom Free.................. 517
53,000 LG Electronics Company.............. 1,544
10,500 Samsung Electronics................. 3,183
36,100 Shinhan Bank, GDR++................. 769
50,060 SK Telecom Company, ADR............. 1,951
--------
10,058
--------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS FUNDS
Nations Emerging Markets Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
TAIWAN -- 8.9%
51,000 Acer Inc., GDR++.................... $ 705
16,000 Acer Peripherals Inc., GDR++........ 797
34,000 Advanced Semiconductor, GDR++....... 725
50,000 Asustek Computer Inc., GDR.......... 913
36 Asustek Computer, GDR++(+).......... 1
48,953 Siliconware Precision Company,
GDR++............................. 667
31,244 Taiwan Semiconductor SP, ADR........ 1,781
--------
5,589
--------
THAILAND -- 1.6%
39,000 Advanced Info Services (FGN)++...... 588
1,242,000 National Finance Public Company
(FGN)++........................... 305
109,000 Siam Commercial Bank Public Company
Limited++......................... 93
--------
986
--------
TURKEY -- 3.5%
26,000,000 Haci Omer Sabanci Holding AS........ 475
32,760,000 Haci Omer Sabanci Holdings new
AS++.............................. 584
42,000,000 Yapi Kredi Bankasi.................. 1,123
--------
2,182
--------
TOTAL COMMON STOCKS
(Cost $43,632).................... 60,268
--------
RIGHTS -- 1.0%
(Cost $243)
TURKEY -- 1.0%
26,000,000 Haci Omer Sabanci Holding AS
Expire 04/12/00................... 618
--------
WARRANTS -- 0.0%+
BRAZIL -- 0.0%+
59,969 Brahma Cia Cervejaria
Expire 04/30/03++................. 9
4,990 Brahma Cia Cervejaria
Expire 04/30/03++................. 0++
--------
9
--------
TOTAL WARRANTS
(Cost $3)......................... 9
--------
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 20.8%
12,248 Nations Cash Reserves#.............. $ 12,248
54 Taiwan Index Fund................... 830
--------
TOTAL INVESTMENT COMPANIES
(Cost $12,755).................... 13,078
--------
TOTAL INVESTMENTS
(Cost $56,633*)............ 117.6% 73,973
--------
OTHER ASSETS AND LIABILITIES
(NET)...................... (17.6)%
Cash................................ $ 1,143
Receivable for Fund shares sold..... 737
Dividends receivable................ 146
Unamortized organization costs...... 8
Collateral on securities loaned..... (12,248)
Payable for Fund shares redeemed.... (386)
Investment advisory fee payable..... (18)
Administration fee payable.......... (12)
Shareholder servicing and
distribution fees payable......... (4)
Payable for investment
securities purchased.............. (386)
Accrued Trustees'/Directors'
fees and expenses................. (13)
Accrued expenses and other
liabilities....................... (31)
--------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................. (11,064)
--------
NET ASSETS................... 100.0% $ 62,909
========
NET ASSETS CONSIST OF:
Distributions in excess of net
investment loss................... $ (240)
Accumulated net realized loss
on investments sold, foreign
currencies and net other
assets............................ (17,740)
Net unrealized appreciation
of investments, foreign
currencies and net other assets... 17,340
Paid-in capital..................... 63,549
--------
NET ASSETS.......................... $ 62,909
========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS FUNDS
Nations Emerging Markets Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($56,233,667 / 3,567,387 shares
outstanding)...................... $15.76
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($3,087,100 / 197,289
shares outstanding)............... $15.65
======
Maximum sales charge................ 5.75%
Maximum offering price per share.... $16.60
INVESTOR B SHARES:
Net asset value and offering price
per share+ ($3,468,648 / 226,397
shares outstanding)............... $15.32
======
INVESTOR C SHARES:
Net asset value and offering price
per share+ ($119,927 / 7,835
shares outstanding)............... $15.31
======
</TABLE>

---------------

* Federal Income Tax Information: Net unrealized appreciation of $16,598 on
investment securities was comprised of gross appreciation of $18,614 and
gross depreciation of $2,016 for Federal income tax purposes. At March 31,
2000, the aggregate cost of securities for Federal income tax purposes was
$57,375.

(+) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.

++ Non-income producing security.

+ The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.

+ Amount represents less than 0.1%.

++ Amount represents less than $500.

<TABLE>
<S> <C> <C>
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS FUNDS
Nations Emerging Markets Fund
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

At March 31, 2000, sector diversification was as follows (unaudited):

<TABLE>
% OF NET VALUE
SECTOR DIVERSIFICATION ASSETS (000)
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Common stocks:
Telecommunications.......................................... 21.2% $ 13,315
Banking..................................................... 11.8 7,401
Holding companies -- Diversified............................ 9.1 5,721
Electrical components....................................... 7.2 4,537
Electronics................................................. 6.0 3,778
Semiconductors.............................................. 4.0 2,506
Retail -- General........................................... 3.6 2,248
Electrical equipment........................................ 3.4 2,153
Manufacturing............................................... 3.2 2,030
Metals and mining........................................... 3.2 2,017
Internet.................................................... 3.1 1,974
Exploration and drilling.................................... 2.3 1,477
Oil and gas................................................. 2.6 1,638
Financial services.......................................... 2.1 1,298
Drugs....................................................... 2.0 1,263
Beverages................................................... 1.9 1,194
Media....................................................... 1.3 826
Computer services........................................... 1.3 795
Computer related............................................ 1.1 705
Broadcasting................................................ 0.9 592
Other....................................................... 4.5 2,800
---------- -------------
TOTAL COMMON STOCKS......................................... 95.8 60,268
RIGHTS...................................................... 1.0 618
WARRANTS.................................................... 0.0 9
INVESTMENT COMPANIES........................................ 20.8 13,078
---------- -------------
TOTAL INVESTMENTS........................................... 117.6 73,973
OTHER ASSETS AND LIABILITIES (NET).......................... (17.6) (11,064)
---------- -------------
NET ASSETS.................................................. 100.0% $ 62,909
========== ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41

NATIONS FUNDS
STATEMENTS OF OPERATIONS
For the year ended March 31, 2000
<TABLE>
INTERNATIONAL INTERNATIONAL INTERNATIONAL
VALUE(A) EQUITY(A) GROWTH
----------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $229,
$1,140, $268 and $43, respectively)..................... $ 4,715# $ 10,260# $ 1,953
Dividends allocated from Portfolio (Net of foreign
withholding taxes of $718, $311, $0 and $0
respectively)+.......................................... 7,440 3,476 --
Interest.................................................. 667# 355# 457
Interest allocated from Portfolio+........................ 1,506 778 --
Securities lending income................................. -- -- 61
Expenses allocated from Portfolio+........................ (2,470) (3,760) --
-------------- -------------- --------------
Total investment income............................... 11,858 11,109 2,471
-------------- -------------- --------------
EXPENSES:
Investment advisory fee................................... 1,303# 3,366# 1,459
Administration fee........................................ 769 1,492 368
Transfer agent fees....................................... 224 294 74
Custodian fees............................................ 22# 261# 78
Legal and audit fees...................................... 189 87 159
Registration and filing fees.............................. 220 65 31
Directors' fees and expenses.............................. 19 19 19
Amortization of organization costs........................ -- -- --
Interest expense.......................................... -- -- 25
Printing.................................................. 87 97 42
Other..................................................... 105 36 288
-------------- -------------- --------------
Subtotal.............................................. 2,938 5,717 2,543
Shareholder servicing and distribution fees:
Investor A Shares....................................... 200 74 71
Investor B Shares....................................... 201 295 13
Investor C Shares....................................... 50 10 4
-------------- -------------- --------------
Total expenses........................................ 3,389 6,096 2,631
Fees waived by investment advisor and/or administrator.... (142) (215) (30)
Fees reduced by credits allowed by the custodian.......... (6) -- --
-------------- -------------- --------------
Net expenses.......................................... 3,241 5,881 2,601
-------------- -------------- --------------
NET INVESTMENT INCOME/(LOSS).............................. 8,617 5,228 (130)
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions................................... 9,694# 99,733# 65,606
Security transactions allocated from Portfolio+......... 63,695 91,305 --
Futures contracts....................................... -- -- (187)
Foreign currencies and net other assets................. (9)# (37)# (238)
Foreign currencies and net other assets allocated from
Portfolio+............................................ 112 (1,129) --
-------------- -------------- --------------
Net realized gain/(loss) on investments................... 73,492 189,872 65,181
-------------- -------------- --------------
Change in unrealized appreciation/(depreciation) of:
Securities (Note 9)..................................... (986)# (20,551)# (22,928)
Securities allocated from Portfolio+.................... 38,439 104,091 --
Foreign currencies and net other assets................. 7# (62)# (10)
-------------- -------------- --------------
Net change in unrealized appreciation/(depreciation) of
investments............................................. 37,460 83,478 (22,938)
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on investments.... 110,952 273,350 42,243
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.............................................. $ 119,569 $ 278,578 $ 42,113
============== ============== ==============

EMERGING
MARKETS
-----------------------------------------
<S> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $229,
$1,140, $268 and $43, respectively)..................... $ 420
Dividends allocated from Portfolio (Net of foreign
withholding taxes of $718, $311, $0 and $0
respectively)+.......................................... --
Interest.................................................. 51
Interest allocated from Portfolio+........................ --
Securities lending income................................. 75
Expenses allocated from Portfolio+........................ --
--------------
Total investment income............................... 546
--------------
EXPENSES:
Investment advisory fee................................... 356
Administration fee........................................ 74
Transfer agent fees....................................... 11
Custodian fees............................................ 51
Legal and audit fees...................................... 199
Registration and filing fees.............................. 98
Directors' fees and expenses.............................. 19
Amortization of organization costs........................ 28
Interest expense.......................................... 5
Printing.................................................. 53
Other..................................................... --
--------------
Subtotal.............................................. 894
Shareholder servicing and distribution fees:
Investor A Shares....................................... 4
Investor B Shares....................................... 23
Investor C Shares....................................... 1
--------------
Total expenses........................................ 922
Fees waived by investment advisor and/or administrator.... (223)
Fees reduced by credits allowed by the custodian.......... --
--------------
Net expenses.......................................... 699
--------------
NET INVESTMENT INCOME/(LOSS).............................. (153)
--------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions................................... 3,892
Security transactions allocated from Portfolio+......... --
Futures contracts....................................... --
Foreign currencies and net other assets................. (18)
Foreign currencies and net other assets allocated from
Portfolio+............................................ --
--------------
Net realized gain/(loss) on investments................... 3,874
--------------
Change in unrealized appreciation/(depreciation) of:
Securities (Note 9)..................................... 18,773
Securities allocated from Portfolio+.................... --
Foreign currencies and net other assets................. 3
--------------
Net change in unrealized appreciation/(depreciation) of
investments............................................. 18,776
--------------
Net realized and unrealized gain/(loss) on investments.... 22,650
--------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.............................................. $ 22,497
==============
</TABLE>

---------------

+ Allocated from International Value Master Portfolio and International Equity
Master Portfolio, respectively.
# Amount represents results from operations prior to conversion to
master-feeder structure.
(a) As of October 18, 1999 and October 8, 1999, respectively, International
Value Fund and International Equity Fund each converted to a master-feeder
structure.

SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42

NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
INTERNATIONAL VALUE
-----------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
3/31/00(b) 3/31/99 5/15/98(a)
-----------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)................................ $ 8,617 $ 1,550 $ 664
Net realized gain/(loss) investments........................ 9,685# 8,446 5,449
Net realized gain/(loss) on investments allocated from
Portfolio+................................................ 63,807 -- --
Net change in unrealized appreciation/(depreciation) of
investments............................................... (979)# (4,375) 5,638
Net change in unrealized appreciation/(depreciation) of
investments allocated from Portfolio+..................... 38,439 -- --
-------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 119,569 5,621 11,751
Distributions to shareholders from net investment income:
Primary A Shares.......................................... (6,376) (1,714) --
Primary B Shares.......................................... -- --* --
Investor A Shares......................................... (1,624) (78) --
Investor B Shares......................................... (268) (30) --
Investor C Shares......................................... (77) (1) --
Distributions to shareholders from net realized gain on
investments:
Primary A Shares.......................................... (8,649) (11,258) (1,210)
Primary B Shares.......................................... -- --* --
Investor A Shares......................................... (2,023) (526) (96)
Investor B Shares......................................... (477) (127) --
Investor C Shares......................................... (138) (8) --
Net increase/(decrease) in net assets from Fund share
transactions.............................................. 599,041 36,565 55,558
-------------- -------------- --------------
Net increase/(decrease) in net assets....................... 698,978 28,444 66,003
NET ASSETS:
Beginning of period......................................... 152,984 124,540 58,537
-------------- -------------- --------------
End of period............................................... $ 851,962 $ 152,984 $ 124,540
============== ============== ==============
Undistributed net investment income/(loss)/(distributions in
excess of net investment income) at end of period......... $ -- $ 286 $ 565
============== ============== ==============
</TABLE>

---------------

* Amount represents less than $500.

+ Allocated from International Value Master Portfolio and International Equity
Master Portfolio, respectively.

# Amount represents results from operations prior to conversion to
master-feeder structure.

(a) Represents financial information for the period December 1, 1997 to May 15,
1998 for the Emerald International Equity Fund, which was reorganized into
International Value on May 22, 1998.

(b) As of October 18, 1999 and October 8, 1999, respectively, International
Value Fund and International Equity Fund each converted to a master-feeder
structure.

SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)

<TABLE>
INTERNATIONAL EQUITY INTERNATIONAL GROWTH EMERGING MARKETS
----------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/00(b) 3/31/99 3/31/00 3/31/99 3/31/00 3/31/99
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,228 $ 6,229 $ (130) $ 596 $ (153) $ 552
99,696# 122,340 65,181 81,289 3,874 (13,222)
90,176 -- -- -- -- --
(20,613)# (103,624) (22,938) (65,405) 18,776 (7,110)
104,091 -- -- -- -- --
-------------- -------------- -------------- -------------- -------------- --------------
278,578 24,945 42,113 16,480 22,497 (19,780)
(3,424) (6,815) (305) -- (11) (438)
-- --* -- -- -- --*
(85) (97) (25) -- -- (3)
(52) (196) -- -- -- (5)
(5) (6) -- -- -- (1)
(112,315) (57,696) (36,499) (65,781) -- --
-- --* -- --* -- --
(4,362) (968) (7,144) (6,209) -- --
(4,558) (2,238) (337) (181) -- --
(143) (69) (109) (118) -- --
3,532 (105,006) (74,094) (164,008) 16,119 (31,495)
-------------- -------------- -------------- -------------- -------------- --------------
157,166 (148,146) (76,400) (219,817) 38,605 (51,722)
785,736 933,882 206,606 426,423 24,304 76,026
-------------- -------------- -------------- -------------- -------------- --------------
$ 942,902 $ 785,736 $ 130,206 $ 206,606 $ 62,909 $ 24,304
============== ============== ============== ============== ============== ==============
$ (4,213) $ (847) $ (256) $ (1,515) $ (240) $ (57)
============== ============== ============== ============== ============== ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44

NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY

<TABLE>
<CAPTION>
INTERNATIONAL VALUE
YEAR ENDED PERIOD ENDED PERIOD ENDED
MARCH 31, 2000 MARCH 31, 1999 MAY 15, 1998(a)
-------------------- -------------------- -----------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold....................................... 25,792 $ 444,906 4,332 $ 80,384 4,183 $64,837
Issued as reinvestment of dividends........ 541 9,269 292 4,000 34 451
Redeemed................................... (4,223) (71,784) (2,449) (52,728) (650) (9,773)
------- --------- ------ -------- ----- -------
Net increase/(decrease).................... 22,110 $ 382,391 2,175 $ 31,656 3,567 $55,515
======= ========= ====== ======== ===== =======
INVESTOR A SHARES:
Sold....................................... 29,999 $ 523,613 260 $ 5,477 110 $ 1,552
Issued as reinvestment of dividends........ 196 3,460 23 313 7 98
Redeemed................................... (20,662) (365,045) (202) (5,154) (110) (1,607)
------- --------- ------ -------- ----- -------
Net increase/(decrease).................... 9,533 $ 162,028 81 $ 636 7 $ 43
======= ========= ====== ======== ===== =======
INVESTOR B SHARES:+
Sold....................................... 2,544 $ 44,056 306 $ 4,222 -- $ --
Issued as reinvestment of dividends........ 40 704 11 147 -- --
Redeemed................................... (147) (2,533) (19) (263) -- --
------- --------- ------ -------- ----- -------
Net increase/(decrease).................... 2,437 $ 42,227 298 $ 4,106 -- $ --
======= ========= ====== ======== ===== =======
INVESTOR C SHARES:+
Sold....................................... 745 $ 12,799 16 $ 200 -- $ --
Issued as reinvestment of dividends........ 11 182 --* 9 -- --
Redeemed................................... (33) (586) (3) (42) -- --
------- --------- ------ -------- ----- -------
Net increase/(decrease).................... 723 $ 12,395 13 $ 167 -- $ --
======= ========= ====== ======== ===== =======
Total net increase/(decrease).............. 34,803 $ 599,041 2,567 $ 36,565 3,574 $55,558
======= ========= ====== ======== ===== =======
</TABLE>

---------------

* Amount represents less than 500 shares.

+ International Value Investor B and Investor C Shares commenced operations on
May 28, 1998 and June 15, 1998, respectively.

(a) Represents financial information for the period December 1, 1997 to May 15,
1998 for the Emerald International Equity Fund, which reorganized into
International Value on May 22, 1998.

SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
NATIONS FUNDS

SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)

<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 15,671 $ 202,540 9,397 $ 138,073
Issued as reinvestment of dividends....................... 1,405 56,983 2,060 28,238
Redeemed.................................................. (17,980) (272,131) (18,544) (266,676)
------- --------- ------- ---------
Net increase/(decrease)................................... (904) $ (12,608) (7,087) $(100,365)
======= ========= ======= =========
PRIMARY B SHARES:+
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* --* -- --
Redeemed.................................................. --* --* (2) (25)
------- --------- ------- ---------
Net increase/(decrease)................................... -- $ -- (2) $ (25)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 53,789 $ 802,774 7,314 $ 99,691
Issued in exchange for A Shares of Pacific Horizon
International Equity Fund (Note 9)...................... 3,095 41,876 -- --
Issued as reinvestment of dividends....................... 44 2,789 70 948
Redeemed.................................................. (55,232) (830,083) (7,387) (101,232)
------- --------- ------- ---------
Net increase/(decrease)................................... 1,696 $ 17,356 (3) $ (593)
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 311 $ 1,322 93 $ 1,339
Issued in exchange for B Shares of Pacific Horizon
International Equity Fund (Note 9)...................... 29 389 -- --
Issued as reinvestment of dividends....................... 112 4,442 176 2,358
Redeemed.................................................. (511) (7,354) (556) (7,666)
------- --------- ------- ---------
Net increase/(decrease)................................... (59) $ (1,201) (287) $ (3,969)
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 53 $ 616 33 $ 460
Issued in exchange for K Shares of Pacific Horizon
International Equity Fund (Note 9)...................... 62 808 -- --
Issued as reinvestment of dividends....................... 3 193 6 75
Redeemed.................................................. (116) (1,632) (43) (589)
------- --------- ------- ---------
Net increase/(decrease)................................... 2 $ (15) (4) $ (54)
======= ========= ======= =========
Total net increase/(decrease)............................. 735 $ 3,532 (7,383) $(105,006)
======= ========= ======= =========
</TABLE>

---------------

* Amount represents less than 500 shares and $500.

+ There were no longer any public shareholders of International Equity Primary B
Shares as of April 22, 1998.

SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 46
NATIONS FUNDS

SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)

<TABLE>
<CAPTION>
INTERNATIONAL GROWTH
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,604 $ 37,383 1,721 $ 29,566
Issued as reinvestment of dividends....................... 1,926 24,654 2,297 35,769
Redeemed.................................................. (9,481) (141,967) (12,933) (233,351)
------- --------- ------- ---------
Net increase/(decrease)................................... (4,951) $ (79,930) (8,915) $(168,016)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 35,716 $ 514,268 2,106 $ 34,591
Issued as reinvestment of dividends....................... 416 5,186 276 4,107
Redeemed.................................................. (35,346) (514,351) (2,150) (35,380)
------- --------- ------- ---------
Net increase/(decrease)................................... 786 $ 5,103 232 $ 3,318
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... 69 $ 973 38 $ 635
Issued as reinvestment of dividends....................... 28 336 12 178
Redeemed.................................................. (49) (684) (13) (207)
------- --------- ------- ---------
Net increase/(decrease)................................... 48 $ 625 37 $ 606
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... 26 $ 367 3 $ 36
Issued as reinvestment of dividends....................... 8 103 7 109
Redeemed.................................................. (25) (362) (4) (61)
------- --------- ------- ---------
Net increase/(decrease)................................... 9 $ 108 6 $ 84
======= ========= ======= =========
Total net increase/(decrease)............................. (4,108) $ (74,094) (8,640) $(164,008)
======= ========= ======= =========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS FUNDS

SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)

<TABLE>
<CAPTION>
EMERGING MARKETS
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,968 $ 26,549 363 $ 3,133
Issued in exchange for assets of Primary A Shares of
Nations Pacific Growth Fund (Note 9).................... -- -- 1,016 8,277
Issued as reinvestment of dividends....................... --* --* 18 155
Redeemed.................................................. (1,065) (11,604) (5,693) (44,018)
------ -------- ------ --------
Net increase/(decrease)................................... 903 $ 14,945 (4,296) $(32,453)
====== ======== ====== ========
PRIMARY B SHARES:+
Sold...................................................... -- $ -- --* $ --*
Issued as reinvestment of dividends....................... -- -- --* --*
Redeemed.................................................. -- -- (4) (23)
------ -------- ------ --------
Net increase/(decrease)................................... -- $ -- (4) $ (23)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 1,238 $ 15,527 20 $ 165
Issued in exchange for assets of Investor A Shares of
Nations Pacific Growth Fund (Note 9).................... -- -- 78 632
Issued as reinvestment of dividends....................... -- -- --* 3
Redeemed.................................................. (1,158) (14,764) (42) (346)
------ -------- ------ --------
Net increase/(decrease)................................... 80 $ 763 56 $ 454
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 66 $ 878 15 $ 142
Issued in exchange for assets of Investor B Shares of
Nations Pacific Growth Fund (Note 9).................... -- -- 113 906
Issued as reinvestment of dividends....................... -- -- --* 5
Redeemed.................................................. (37) (429) (49) (411)
------ -------- ------ --------
Net increase/(decrease)................................... 29 $ 449 79 $ 642
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 6 $ 83 8 $ 72
Issued in exchange for assets of Investor C Shares of
Nations Pacific Growth Fund (Note 9).................... -- -- 2 14
Issued as reinvestment of dividends....................... -- -- --* 1
Redeemed.................................................. (9) (121) (27) (202)
------ -------- ------ --------
Net increase/(decrease)................................... (3) $ (38) (17) $ (115)
====== ======== ====== ========
Total net increase/(decrease)............................. 1,009 $ 16,119 (4,182) $(31,495)
====== ======== ====== ========
</TABLE>

---------------

* Amount represents less than 500 shares and $500.

+ There were no longer any public shareholders of Emerging Markets Primary B
Shares as of January 24, 1999.

SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48

NATIONS FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>

NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT NET INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME INCOME
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL VALUE:
PRIMARY A SHARES*
Year ended 3/31/2000#..... $14.45 $0.37 $4.73 $5.10 $(0.28) --
Period ended 3/31/1999#... 15.53 0.16 0.28 0.44 (0.18) --
Period ended 5/15/1998.... 13.17 0.09 2.56 2.65 -- --
Year ended 11/30/1997..... 11.29 0.09 1.91 2.00 (0.09) $(0.01)
Period ended
11/30/1996**............ 10.00 0.06 1.29 1.35 (0.06) --
INVESTOR A SHARES*
Year ended 3/31/2000#..... $14.43 $0.36 $4.72 $5.08 $(0.25) --
Period ended 3/31/1999#... 15.44 0.14 0.36 0.50 (0.17) --
Period ended 5/15/1998.... 13.13 0.08 2.52 2.60 -- --
Year ended 11/30/1997..... 11.29 0.01 1.91 1.92 (0.01) $(0.05)
Period ended
11/30/1996**............ 10.00 0.04 1.31 1.35 (0.04) --
INVESTOR B SHARES
Year ended 3/31/2000#..... $14.40 $0.22 $4.66 $4.88 $(0.15) --
Period ended
3/31/1999***#........... 14.33 0.06 0.76 0.82 (0.13) --
INVESTOR C SHARES
Year ended 3/31/2000#..... $14.41 $0.21 $4.69 $4.90 $(0.17) --
Period ended
3/31/1999***#........... 13.33 0.06 1.77 1.83 (0.13) --

DISTRIBUTIONS
FROM NET
REALIZED
CAPITAL GAINS
-------------
<S> <C>
INTERNATIONAL VALUE:
PRIMARY A SHARES*
Year ended 3/31/2000#..... $(0.49)
Period ended 3/31/1999#... (1.34)
Period ended 5/15/1998.... (0.29)
Year ended 11/30/1997..... (0.02)
Period ended
11/30/1996**............ --
INVESTOR A SHARES*
Year ended 3/31/2000#..... $(0.49)
Period ended 3/31/1999#... (1.34)
Period ended 5/15/1998.... (0.29)
Year ended 11/30/1997..... (0.02)
Period ended
11/30/1996**............ (0.02)
INVESTOR B SHARES
Year ended 3/31/2000#..... $(0.49)
Period ended
3/31/1999***#........... (0.62)
INVESTOR C SHARES
Year ended 3/31/2000#..... $(0.49)
Period ended
3/31/1999***#........... (0.62)
</TABLE>

---------------

* The financial information for the fiscal periods through May 22, 1998
reflect the financial information for the Emerald International Equity Fund
Institutional and Retail Shares, which were reorganized into the
International Value Primary A and Investor A Shares, respectively, as of May
22, 1998.

** International Value Primary A and Investor A Shares commenced operations on
December 27, 1995.

*** International Value Investor B and Investor C Shares commenced operations
on May 22, 1998 and June 15, 1998, 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.

# Per share net investment income has been calculated using the monthly
average shares method.

(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 results prior to conversion to a master-feeder structure.

SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.77) $18.78 36.03% $600,589 1.24%(a) 2.11% 12%(b) 1.34%(a)
(1.52) 14.45 1.48 142,546 1.30+ 1.36+ 44 1.39+
(0.29) 15.53 20.54 119,412 1.25+ 2.06+ 88 1.26+
(0.12) 13.17 17.75 54,277 1.21 0.89 29 1.21
(0.06) 11.29 13.47 17,528 0.00+ 0.00+ 50 3.46+
$(0.74) $18.77 35.86% $186,649 1.49%(a) 1.86% 12%(b) 1.59%(a)
(1.51) 14.43 1.75 5,960 1.55+ 1.11+ 44 1.64+
(0.29) 15.44 20.22 5,128 1.81+ 1.21+ 88 1.82+
(0.08) 13.13 17.11 4,259 1.73 0.26 29 1.93
(0.06) 11.29 13.54 115 0.00+ 1.83+ 50 57.40+
$(0.64) $18.64 34.51% $ 50,999 2.24%(a) 1.11% 12%(b) 2.34%(a)
(0.75) 14.40 1.25 4,296 2.30+ 0.36+ 44 2.39+
$(0.66) $18.65 34.64% $ 13,725 2.24%(a) 1.11% 12%(b) 2.34%(a)
(0.75) 14.41 3.98 182 2.30+ 0.36+ 44 2.39+
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT NET INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME INCOME
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY:
PRIMARY A SHARES
Year ended 3/31/2000#..... $14.12 $ 0.10 $ 4.91 $ 5.01 $(0.06) --
Year ended 3/31/1999#..... 14.81 0.11 0.39 0.50 (0.12) --
Year ended 3/31/1998#..... 13.13 0.11 1.95 2.06 (0.17) $(0.05)
Year ended 3/31/1997#..... 13.50 0.08 0.11 0.19 (0.11) (0.00)**
Period ended
3/31/1996(a)#........... 11.75 0.07 1.80 1.87 (0.06) (0.04)
Year ended 5/31/1995#..... 12.06 0.14 (0.20) (0.06) (0.03) --
INVESTOR A SHARES
Year ended 3/31/2000#..... $13.97 $ 0.06 $ 4.86 $ 4.92 $(0.05) --
Year ended 3/31/1999#..... 14.67 0.08 0.40 0.48 (0.11) --
Year ended 3/31/1998#..... 13.01 0.07 1.94 2.01 (0.15) $(0.04)
Year ended 3/31/1997#..... 13.39 0.05 0.11 0.16 (0.09) (0.00)**
Period ended
3/31/1996(a)#........... 11.67 0.04 1.78 1.82 (0.04) (0.04)
Year ended 5/31/1995#..... 12.00 0.11 (0.20) (0.09) (0.02) --
INVESTOR B SHARES
Year ended 3/31/2000#..... $13.75 $(0.05) $ 4.72 $ 4.67 $(0.03) --
Year ended 3/31/1999#..... 14.56 (0.03) 0.38 0.35 (0.09) --
Year ended 3/31/1998#..... 12.83 (0.03) 1.92 1.89 -- --
Year ended 3/31/1997#..... 13.27 (0.05) 0.10 0.05 (0.04) $(0.00)**
Period ended
3/31/1996(a)#........... 11.56 (0.02) 1.78 1.76 -- (0.03)
Year ended 5/31/1995#..... 11.96 0.05 (0.22) (0.17) (0.01) --
INVESTOR C SHARES
Year ended 3/31/2000#..... $13.52 $(0.03) $ 4.60 $ 4.57 $(0.04) --
Year ended 3/31/1999#..... 14.34 (0.03) 0.37 0.34 (0.09) --
Year ended 3/31/1998#..... 12.74 (0.01) 1.89 1.88 (0.10) $(0.02)
Year ended 3/31/1997#..... 13.13 0.02 0.10 0.12 (0.06) (0.00)**
Period ended
3/31/1996(a)#........... 11.45 (0.03) 1.75 1.72 -- (0.02)
Year ended 5/31/1995#..... 11.86 0.02 (0.21) (0.19) -- --

<CAPTION>
DISTRIBUTIONS
FROM NET
REALIZED
CAPITAL GAINS
-------------
<S> <C>
INTERNATIONAL EQUITY:
PRIMARY A SHARES
Year ended 3/31/2000#..... $(2.33)
Year ended 3/31/1999#..... (1.07)
Year ended 3/31/1998#..... (0.16)
Year ended 3/31/1997#..... (0.42)
Period ended
3/31/1996(a)#........... (0.02)
Year ended 5/31/1995#..... (0.12)
INVESTOR A SHARES
Year ended 3/31/2000#..... $(2.33)
Year ended 3/31/1999#..... (1.07)
Year ended 3/31/1998#..... (0.16)
Year ended 3/31/1997#..... (0.42)
Period ended
3/31/1996(a)#........... (0.02)
Year ended 5/31/1995#..... (0.12)
INVESTOR B SHARES
Year ended 3/31/2000#..... $(2.33)
Year ended 3/31/1999#..... (1.07)
Year ended 3/31/1998#..... (0.16)
Year ended 3/31/1997#..... (0.42)
Period ended
3/31/1996(a)#........... (0.02)
Year ended 5/31/1995#..... (0.12)
INVESTOR C SHARES
Year ended 3/31/2000#..... $(2.33)
Year ended 3/31/1999#..... (1.07)
Year ended 3/31/1998#..... (0.16)
Year ended 3/31/1997#..... (0.42)
Period ended
3/31/1996(a)#........... (0.02)
Year ended 5/31/1995#..... (0.12)
</TABLE>

---------------

** Amount represents less than $0.01 per share.

+ 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.

# Per share net investment income/(loss) has been calculated using the monthly
average shares method.

(a) Fiscal year end changed to March 31. Prior to this, the fiscal year end was
May 31.

(b) Amount represents results prior to conversion to a master-feeder structure.

SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
NATIONS FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
DISTRIBUTIONS TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
IN EXCESS OF DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
NET REALIZED AND VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET TURNOVER AVERAGE
CAPITAL GAINS DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-- $(2.39) $16.74 39.85% $866,731 1.14% 0.69% 129%(b) 1.18%
-- (1.19) 14.12 3.68 743,861 1.13 0.79 146 1.13
-- (0.38) 14.81 16.06 885,329 1.14 0.76 64 1.14
$(0.03) (0.56) 13.13 1.32 976,855 1.16 0.62 36 1.16
-- (0.12) 13.50 16.01 849,731 1.17+ 0.65+ 26 1.18+
(0.10) (0.25) 11.75 (0.46) 572,940 1.03 1.17 92 1.04
-- $(2.38) $16.51 39.54% $ 43,111 1.39% 0.44% 129%(b) 1.43%
-- (1.18) 13.97 3.59 12,785 1.38 0.54 146 1.38
-- (0.35) 14.67 15.77 13,477 1.39 0.51 64 1.39
$(0.03) (0.54) 13.01 1.08 9,443 1.41 0.37 36 1.41
-- (0.10) 13.39 15.66 7,643 1.42+ 0.40+ 26 1.43+
(0.10) (0.24) 11.67 (0.69) 4,877 1.28 0.92 92 1.29
-- $(2.36) $16.06 38.14% $ 32,073 2.14% (0.31)% 129%(b) 2.18%
-- (1.16) 13.75 2.65 28,266 2.13 (0.21) 146 2.13
-- (0.16) 14.56 14.93 34,119 2.14 (0.24) 64 2.14
$(0.03) (0.49) 12.83 0.28 36,698 2.16 (0.38) 36 2.16
-- (0.05) 13.27 15.25 40,426 1.99+ (0.17)+ 26 2.00+
(0.10) (0.23) 11.56 (1.30) 31,372 1.78 0.42 92 1.79
-- $(2.37) $15.72 38.12% $ 987 2.14% (0.31)% 129%(b) 2.18%
-- (1.16) 13.52 2.63 824 2.13 (0.21) 146 2.13
-- (0.28) 14.34 15.05 933 1.97 (0.07) 64 1.97
$(0.03) (0.51) 12.74 0.77 988 1.66 0.12 36 1.66
-- (0.04) 13.13 15.09 652 2.09+ (0.27)+ 26 2.10+
(0.10) (0.22) 11.45 (1.56) 495 2.03 0.17 92 2.04
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 52
NATIONS FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME CAPITAL GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL GROWTH:
PRIMARY A SHARES*
Year ended 3/31/2000#....... $15.53 $(0.02) $2.97 $ 2.95 $(0.03) $(4.24)
Year ended 3/31/1999#....... 19.42 0.05 0.87 0.92 -- (4.81)
Period ended 3/31/1998#..... 18.43 0.03 1.30 1.33 -- (0.34)
Period ended 5/16/1997...... 17.05 0.05 1.84 1.89 (0.17) (0.34)
Year ended 8/31/1996........ 16.24 0.18 1.48 1.66 (0.46) (0.39)
Year ended 8/31/1995#....... 16.34 0.13 0.17 0.30 (0.11) (0.29)
INVESTOR A SHARES*
Year ended 3/31/2000#....... $15.26 $(0.09) $2.97 $ 2.88 $(0.02) $(4.24)
Year ended 3/31/1999#....... 19.21 0.01 0.85 0.86 -- (4.81)
Period ended 3/31/1998#..... 18.27 (0.01) 1.29 1.28 -- (0.34)
Period ended 5/16/1997...... 16.90 (0.05) 1.90 1.85 (0.14) (0.34)
Year ended 8/31/1996........ 16.14 0.04 1.57 1.61 (0.46) (0.39)
Year ended 8/31/1995#....... 16.29 0.08 0.17 0.25 (0.11) (0.29)
INVESTOR B SHARES*
Year ended 3/31/2000#....... $15.01 $(0.20) $2.85 $ 2.65 -- $(4.24)
Year ended 3/31/1999#....... 19.11 (0.12) 0.83 0.71 -- (4.81)
Period ended 3/31/1998#..... 18.32 (0.11) 1.24 1.13 -- (0.34)
Period ended 5/16/1997...... 17.04 (0.05) 1.79 1.74 $(0.12) (0.34)
Period ended 8/31/1996(a)... 17.54 -- (0.50) (0.50) -- --
INVESTOR C SHARES
Year ended 3/31/2000#....... $15.43 $(0.19) $2.92 $ 2.73 -- $(4.24)
Year ended 3/31/1999#....... 19.42 (0.12) 0.94 0.82 -- (4.81)
Period ended 3/31/1998**#... 18.49 (0.09) 1.36 1.27 -- (0.34)

<CAPTION>
TOTAL
DIVIDENDS
AND
DISTRIBUTIONS
-------------
<S> <C>
INTERNATIONAL GROWTH:
PRIMARY A SHARES*
Year ended 3/31/2000#....... $(4.27)
Year ended 3/31/1999#....... (4.81)
Period ended 3/31/1998#..... (0.34)
Period ended 5/16/1997...... (0.51)
Year ended 8/31/1996........ (0.85)
Year ended 8/31/1995#....... (0.40)
INVESTOR A SHARES*
Year ended 3/31/2000#....... $(4.26)
Year ended 3/31/1999#....... (4.81)
Period ended 3/31/1998#..... (0.34)
Period ended 5/16/1997...... (0.48)
Year ended 8/31/1996........ (0.85)
Year ended 8/31/1995#....... (0.40)
INVESTOR B SHARES*
Year ended 3/31/2000#....... $(4.24)
Year ended 3/31/1999#....... (4.81)
Period ended 3/31/1998#..... (0.34)
Period ended 5/16/1997...... (0.46)
Period ended 8/31/1996(a)... --
INVESTOR C SHARES
Year ended 3/31/2000#....... $(4.24)
Year ended 3/31/1999#....... (4.81)
Period ended 3/31/1998**#... (0.34)
</TABLE>

---------------

* The financial information for the fiscal periods through May 23, 1997 reflect
the financial information for the Pilot International Equity Fund Pilot,
Class A and Class B Shares, which were reorganized into the International
Growth Primary A, Investor A and Investor B Shares, respectively, as of May
23, 1997.

** International Growth Investor C Shares commenced operations on September 19,
1997.

+ 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.

# Per share net investment income/(loss) has been calculated using the monthly
average shares method.

(a) Shares were initially issued on July 1, 1996.

SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
NATIONS FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
RATIO OF ---------------
RATIO OF NET OPERATING RATIO OF RATIO OF
NET ASSETS OPERATING EXPENSES TO NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO AVERAGE NET INCOME/(LOSS) TO PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET ASSETS INCLUDING AVERAGE NET TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS INTEREST EXPENSE ASSETS RATE NET ASSETS
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$14.21 22.22% $ 96,460 1.40% 1.41% (0.13)% 29% 1.43%
15.53 6.16 182,316 1.12 1.14 0.24 21 1.21
19.42 7.39 401,105 1.15+ -- 0.21+ 11 1.17+
18.43 11.28 701,033 1.18+ -- 0.47+ 34 1.18+
17.05 10.64 579,019 1.08 -- 0.69 22 1.08
16.24 2.08 363,212 1.18 -- 0.82 36 1.18
$13.88 22.18% $ 31,710 1.65% 1.66% (0.38)% 29% 1.68%
15.26 5.89 22,874 1.37 1.39 (0.01) 21 1.46
19.21 7.18 24,353 1.40+ -- (0.04)+ 11 1.42+
18.27 11.14 26,730 1.42+ -- 0.29+ 34 1.42+
16.90 10.40 26,730 1.32 -- 0.48 22 1.32
16.14 1.77 27,625 1.42 -- 0.50 36 1.42
$13.42 20.66% $ 1,493 2.40% 2.41% (1.13)% 29% 2.43%
15.01 5.11 957 2.12 2.14 (0.76) 21 2.21
19.11 6.34 500 2.15+ -- (0.79)+ 11 2.17+
18.32 10.37 560 2.18+ -- (0.61)+ 34 2.18+
17.04 (2.85) 184 2.06+ -- (0.32)+ 22 2.06+
$13.92 20.67% $ 543 2.40% 2.41% (1.13)% 29% 2.43%
15.43 5.56 459 2.12 2.14 (0.76) 21 2.21
19.42 7.04 465 2.15+ -- (0.79)+ 11 2.17+
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 54
NATIONS FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET IN EXCESS OF
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT NET INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME INCOME
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EMERGING MARKETS:
PRIMARY A SHARES
Year ended 3/31/2000#..... $ 8.14 $(0.05) $ 7.68 $ 7.63 $(0.01) --
Year ended 3/31/1999#..... 10.60 0.14 (2.53) (2.39) (0.07) --
Year ended 3/31/1998#..... 11.41 0.04 (0.76) (0.72) (0.09) --
Year ended 3/31/1997#..... 10.34 0.01 1.21 1.22 (0.02) $(0.07)
Period ended
3/31/1996*#............. 10.00 (0.03) 0.37 0.34 -- 0.00**
INVESTOR A SHARES
Year ended 3/31/2000#..... $ 8.09 $(0.09) $ 7.65 $ 7.56 -- --
Year ended 3/31/1999#..... 10.57 0.10 (2.52) (2.42) $(0.06) --
Year ended 3/31/1998#..... 11.39 0.01 (0.75) (0.74) (0.08) --
Year ended 3/31/1997#..... 10.32 (0.01) 1.21 1.20 (0.02) $(0.05)
Period ended
3/31/1996*#............. 10.00 (0.05) 0.37 0.32 -- --
INVESTOR B SHARES
Year ended 3/31/2000#..... $ 7.99 $(0.16) $ 7.49 $ 7.33 -- --
Year ended 3/31/1999#..... 10.49 0.05 (2.50) (2.45) $(0.05) --
Year ended 3/31/1998#..... 11.31 (0.07) (0.75) (0.82) -- --
Year ended 3/31/1997#..... 10.26 (0.09) 1.20 1.11 -- --
Period ended
3/31/1996*#............. 10.00 (0.11) 0.37 0.26 -- --
INVESTOR C SHARES
Year ended 3/31/2000#..... $ 7.98 $(0.14) $ 7.47 $ 7.33 -- --
Year ended 3/31/1999#..... 10.47 0.05 (2.49) (2.44) $(0.05) --
Year ended 3/31/1998#..... 11.34 (0.05) (0.75) (0.80) (0.07) --
Year ended 3/31/1997#..... 10.27 (0.04) 1.20 1.16 (0.01) $(0.02)
Period ended
3/31/1996*#............. 10.00 (0.10) 0.37 0.27 -- --

<CAPTION>
DISTRIBUTIONS
FROM NET
REALIZED
CAPITAL GAINS
-------------
<S> <C>
EMERGING MARKETS:
PRIMARY A SHARES
Year ended 3/31/2000#..... --
Year ended 3/31/1999#..... --
Year ended 3/31/1998#..... --
Year ended 3/31/1997#..... $(0.06)
Period ended
3/31/1996*#............. --
INVESTOR A SHARES
Year ended 3/31/2000#..... --
Year ended 3/31/1999#..... --
Year ended 3/31/1998#..... --
Year ended 3/31/1997#..... $(0.06)
Period ended
3/31/1996*#............. --
INVESTOR B SHARES
Year ended 3/31/2000#..... --
Year ended 3/31/1999#..... --
Year ended 3/31/1998#..... --
Year ended 3/31/1997#..... $(0.06)
Period ended
3/31/1996*#............. --
INVESTOR C SHARES
Year ended 3/31/2000#..... --
Year ended 3/31/1999#..... --
Year ended 3/31/1998#..... --
Year ended 3/31/1997#..... $(0.06)
Period ended
3/31/1996*#............. --
</TABLE>

---------------

* Emerging Markets Primary A, Investor A, Investor B and Investor C Shares
commenced operations on June 30, 1995.

** Amount represents less than $0.01 per share.

+ 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.

# Per share net investment income/(loss) has been calculated using the monthly
average shares method.

(a) The effect of interest expense on the operating expense ratio was less than
0.01%.

(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 FUNDS

FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>

RATIO OF
RATIO OF NET OPERATING RATIO OF
TOTAL NET ASSETS OPERATING EXPENSES TO NET INVESTMENT
DIVIDENDS NET ASSET END OF EXPENSES TO AVERAGE NET INCOME/(LOSS) TO PORTFOLIO
AND VALUE TOTAL PERIOD AVERAGE NET ASSETS INCLUDING AVERAGE NET TURNOVER
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS INTEREST EXPENSE ASSETS RATE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.01) $15.76 93.71% $56,234 1.90% 1.91% (0.40)% 61%
(0.07) 8.14 (22.60) 21,689 1.78(b) (a) 1.66 71
(0.09) 10.60 (6.39) 73,797 1.57 -- 0.36 63
(0.15) 11.41 11.97 76,483 1.74 -- 0.13 31
0.00** 10.34 3.42 47,560 2.13+ -- (0.38)+ 17
-- $15.65 93.33% $ 3,087 2.15% 2.16% (0.65)% 61%
$(0.06) 8.09 (22.90) 951 2.03(b) (a) 1.41 71
(0.08) 10.57 (6.60) 652 1.82 -- 0.11 63
(0.13) 11.39 11.74 894 1.99 -- (0.12) 31
-- 10.32 3.20 477 2.38+ -- (0.63)+ 17
-- $15.32 91.74% $ 3,468 2.90% 2.91% (1.40)% 61%
$(0.05) 7.99 (23.42) 1,579 2.78(b) (a) 0.66 71
-- 10.49 (7.25) 1,247 2.57 -- (0.64) 63
(0.06) 11.31 10.88 1,499 2.74 -- (0.87) 31
-- 10.26 2.60 1,209 3.13+ -- (1.38)+ 17
-- $15.31 91.73% $ 120 2.90% 2.91% (1.40)% 61%
$(0.05) 7.98 (23.37) 86 2.78(b) (a) 0.66 71
(0.07) 10.47 (7.17) 293 2.40 -- (0.47) 63
(0.09) 11.34 11.34 226 2.24 -- (0.37) 31
-- 10.27 2.70 23 3.02+ -- (1.27)+ 17

<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF
OPERATING
EXPENSES TO
AVERAGE
NET ASSETS
---------------
<S> <C>
2.54%
1.98(b)
1.57
1.74
2.13+
2.79%
2.23(b)
1.82
1.99
2.38+
3.54%
2.98(b)
2.57
2.74
3.13+
3.54%
2.98(b)
2.40
2.24
3.02+
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56

NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS

Nations Fund, Inc. (the "Company") and Nations Reserves ("Reserves") (formerly
Nations Institutional Reserves) are each registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end investment company. At
March 31, 2000, the Company offered seven separate portfolios and Reserves
offered sixteen portfolios. These financial statements pertain only to the
international stock portfolios of the Company and Reserves: International Value
Fund, International Equity Fund, International Growth Fund and Emerging Markets
Fund (each a "Fund" and collectively, the "Funds"). Financial statements for the
other portfolios of the Company and Reserves are presented under separate cover.
The Funds currently offer four classes of shares: Primary A Shares, Investor A
Shares, Investor B Shares and Investor C Shares. Shareholders of a Fund have
equal voting rights on matters affecting all shareholders of the Fund. In
addition, each class of shares of a Fund has exclusive voting rights on matters
that relate solely to its class and separate voting rights on matters in which
the interests of one class differ from the interests of any other class.

On October 18, 1999 and October 8, 1999, respectively, International Value Fund
and International Equity Fund each converted to a master-feeder structure.
International Value Fund and International Equity Fund (the "Feeder Funds") seek
to achieve their investment objectives by investing substantially all of their
assets in International Value Master Portfolio and International Equity Master
Portfolio, respectively (the "Master Portfolios"), each a series of Nations
Master Investment Trust (the "Master Trust"), another open-end management
investment company in the Nations Funds family. The Master Portfolios have the
same investment objective as that of its corresponding Feeder Fund. The value of
the Feeder Funds' investments in the respective Master Portfolios included in
the Statements of net assets reflects the Feeder Funds' proportionate beneficial
interest in the net assets of the respective Master Portfolios (98.0% at March
31, 2000 for International Value Master Portfolio and 98.0% for International
Equity Master Portfolio). The financial statements of the Master Portfolios,
including their schedules of investments, are included elsewhere within this
report and should be read in conjunction with the Feeder Funds' financial
statements. Other funds not registered under the 1940 act offered by the Nations
Offshore Funds and managed by Banc of America Advisors, Inc. ("BAAI"), whose
financial statements are not presented here, also invest in the Master
Portfolios.

1. SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make certain 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 Funds in the
preparation of their financial statements.

Securities valuation: Securities traded on a recognized exchange or on NASDAQ
are valued at the last sale price on the exchange or market on which such
securities are primarily traded. Securities traded over-the-counter are valued
at the last sale price or, if no sale occurred on such day, at the mean of the
current bid and asked prices. Debt securities are generally valued by an
independent pricing service. Prices provided by the pricing service may be
determined without exclusive reliance on quoted prices, and may reflect
appropriate factors such as yield, type of issue, coupon rate, maturity and
general market conditions. Restricted securities, securities for which market
quotations are not readily available, and certain other assets may be valued
under procedures adopted by the Board of Trustees/Directors. Short-term
investments that mature in 60 days or less are valued at amortized cost, which
approximates current market value.

The valuation of securities of each Feeder Fund's investment in its
corresponding Master Portfolio is based on the reported net asset value of that
Master Portfolio. The Master Portfolios use valuation policies consistent with
those described above.

Foreign currency translation: The books and records of the Funds are maintained
in U.S. dollars. Foreign currencies, investments and other assets and
liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities and income and expenses are
translated on the respective dates of such transactions. Net realized foreign
currency gains and losses resulting from changes in exchange rates include
foreign currency gains and losses between trade date and settlement date of
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of a Fund
and the amounts actually received. The effects of changes in foreign currency
exchange rates on securities are not separately stated in the Statements of
operations from the effects of changes in market prices of those securities, but
are included with the net realized and unrealized gain or loss on securities.

52
<PAGE> 57
NATIONS FUNDS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Forward foreign currency transactions: Generally, each Fund may enter into
forward currency exchange contracts only under two circumstances: (i) when the
Fund enters into a contract for the purchase or sale of a security denominated
in a foreign currency, to "lock" in the U.S. exchange rate of the transaction,
with such period being a short-dated contract covering the period between
transaction date and settlement date; and (ii) when the investment advisor or
sub-advisor believes that the currency of a particular foreign country may
experience a substantial movement against the U.S. dollar. Forward foreign
currency contracts are valued at the forward rate and are marked-to-market
daily. The change in market value is recorded by the Fund as an unrealized gain
or loss. When the contract is closed or offset with the same counterparty, the
Fund records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed or offset.

Forward foreign currency contracts will be used primarily to protect the Funds
from adverse currency movements and will generally not be entered into for terms
greater than one year. The use of forward foreign currency contracts does not
eliminate fluctuations in the underlying prices of a Fund's investment
securities; however, it does establish a rate of exchange that can be achieved
in the future. The use of forward contracts involves the risk that anticipated
currency movements will not be accurately predicted. A forward contract would
limit the risk of loss due to decline in the value of a particular currency;
however, it also would limit any potential gain that might result should the
value of the currency increase instead of decrease. These contracts may involve
market risk in excess of the unrealized gain or loss reflected in the Statements
of net assets. In addition, the Funds could be exposed to risks if
counterparties to the contracts are unable to meet the terms of their contracts.
The counterparty risk exposure is, therefore, closely monitored and contracts
are only executed with high credit quality financial institutions. The Funds had
no forward foreign currency contracts outstanding at March 31, 2000.

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, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on ex-
dividend date, except that if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as the Funds are informed of the
ex-dividend date. Each Fund'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.

The Feeder Funds record their share of the investment income and realized and
unrealized gains and losses recorded by the Master Portfolios on a daily basis.
The investment income and realized and unrealized gains and losses are allocated
daily to investors in the Master Portfolios based upon the value of their
investments in the Master Portfolios.

Dividends and distributions to shareholders: Distributions from net investment
income are declared and paid each calendar quarter. Each Fund will distribute
net realized capital gains (including net short-term capital gains) at least
annually after the fiscal year in which the capital gains were earned, unless
offset by any available capital loss carryforward. Income distributions and
capital gain distributions on a Fund level are determined in accordance with
Federal income tax regulations which may differ from generally accepted
accounting principles.

Certain reclassifications are made to each Fund's capital accounts to reflect
income and gains available for distribution (or available capital loss
carryforwards) under Federal income tax regulations. These reclassifications are
due to different book and tax accounting for foreign currency, dividend
reclassifications, investments in passive foreign investment companies and each
Fund's use of the tax accounting practice known as equalization.

Reclassifications for the year ended March 31, 2000 were as follows:

<TABLE>
<CAPTION>
INCREASE/
(DECREASE) INCREASE/
INCREASE/ UNDISTRIBUTED (DECREASE)
(DECREASE) NET ACCUMULATED
PAID-IN INVESTMENT NET REALIZED
CAPITAL INCOME GAIN/(LOSS)
(000) (000) (000)
-----------------------------------------
<S> <C> <C> <C>
International Value........ $15,380 $ (558) $(14,822)
International Equity....... 61,432 (5,027) (56,405)
International Growth....... 27,432 1,719 (29,151)
Emerging Markets........... 1 (19) 18
</TABLE>

Federal income tax: Each Fund 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.

53
<PAGE> 58
NATIONS FUNDS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Funds may be subject to foreign taxes on income, gains on investments or
currency repatriation, a portion of which may be recoverable. The Funds will
accrue such taxes and recoveries as applicable, based upon their current
interpretation of tax rules and regulations that exist in the markets in which
they invest.

Expenses: General expenses of the Company and Reserves are allocated to the
Funds based upon their relative net assets or other expense allocation
methodologies determined by the nature of the expense. Expenses directly
attributable to a Fund or class of shares are charged to such Fund or class. The
Funds bear all costs in connection with their organization, including the fees
and expenses of registering and qualifying their shares for distribution under
Federal and state securities regulations. All such costs are being amortized on
a straight line basis over a period of five years from commencement of
operations. The Feeder Funds record their share of the expenses reported by the
Master Portfolios on a daily basis. The expenses are allocated daily to
investors in the Master Portfolios based upon the value of the Feeder Funds'
investments in the Master Portfolios.

2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS

Each of the Company and Reserves has entered into an investment advisory
agreement (the "Investment Advisory Agreements") with Banc of America Advisors,
Inc. ("BAAI"), a wholly-owned subsidiary of Bank of America, N.A. ("Bank of
America"), 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 Funds. Under
the terms of the Investment Advisory Agreements, BAAI is entitled to receive an
advisory fee, calculated daily and payable monthly, based on the following
annual rates multiplied by the average daily net assets of each fund:

<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
International Growth........................ 0.80%
Emerging Markets............................ 1.00%
</TABLE>

Effective May 14, 1999, the maximum advisory fee payable by the Funds decreased
by 0.10% of the Funds' average daily net assets. The table above shows the
current maximum annual rate.

The Feeder Funds indirectly pay for investment advisory services through their
investments in their corresponding Master Portfolios (See Note 2 of Notes to
financial statements of the Master Portfolios).

Each of the Company and Reserves has entered into a sub-advisory agreement (the
"Sub-Advisory Agreements") with BAAI and Gartmore Global Partners ("Gartmore").
Gartmore is a joint venture structured as a general partnership between NB
Partner Corp., a wholly-owned subsidiary of Bank of America and Gartmore U.S.
Ltd., a wholly-owned subsidiary of Gartmore Investment Management plc ("Gartmore
plc"), a United Kingdom ("U.K.") based holding company for a leading
international fund management group of companies. On March 6, 2000, National
Westminster Bank plc, the parent company of Gartmore plc, was sold to Royal Bank
of Scotland. Under the Sub-Advisory Agreements, Gartmore is entitled to receive
a sub-advisory fee from BAAI at the following maximum annual rates of each
Fund's average daily net assets:

<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
International Growth........................ 0.70%
Emerging Markets............................ 0.85%
</TABLE>

Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Company
and Reserves. Under the co-administration agreements, Stephens and BAAI are
entitled to receive a combined fee, computed daily and paid monthly, at the
maximum annual rate of 0.22% of the average daily net assets of International
Growth Fund and Emerging Markets Fund. International Value Fund and
International Equity Fund pay a monthly fee at the maximum annual rate of 0.17%
of their average daily net assets. Effective May 14, 1999, the combined co-
administration fee payable by the Funds to Stephens and BAAI increased by 0.10%
of the Fund's average daily net assets. The Bank of New York ("BNY") serves as
sub-administrator of the Company and Reserves pursuant to agreements with BAAI.
For the year ended March 31, 2000, Stephens and BAAI earned $212,830 and
$1,088,781, respectively, from the Funds for their co-administration services.

BAAI and/or the sub-advisers and Stephens may, from time to time, reduce their
fees payable by each Fund. Effective August 1, 1999, BAAI and/or the
sub-advisers and Stephens agreed to reimburse expenses and/or waive fees until
May 2000 to the extent that total expenses (excluding shareholder servicing and
distribution fees) exceed an annual rate of 1.15% of the International Equity
Fund's average daily net assets. Prior to August 1, 1999, BAAI and/or the
sub-advisers and Stephens had voluntarily agreed to reimburse expenses and/or
waive

54
<PAGE> 59
NATIONS FUNDS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

their fees to maintain this total expense limit. In addition, BAAI and/or the
sub-advisers and Stephens voluntarily agreed to reimburse expenses and/or waive
fees to the extent that total expenses (excluding shareholder servicing and
distribution fees) exceed an annual rate of 1.90% of the Emerging Markets Fund's
average daily net assets until July 31, 2000.

BNY serves as the custodian of the Funds' assets. For the year ended March 31,
2000, the Funds' expenses were reduced by $5,703 under expense offset
arrangements by 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.

Effective December 1, 1999, First Data Investor Services Group, Inc. ("First
Data"), the transfer agent for the Funds' shares, was acquired by PFPC Inc.
("PFPC"). PFPC provides the same services as the transfer agent for the Funds'
shares as were previously provided by First Data. Bank of America serves as the
sub-transfer agent for the Primary A and B Shares of the Funds. For the year
ended March 31, 2000, Bank of America earned approximately $92,876 for providing
such services.

Stephens also serves as distributor of the Funds' shares. For the year ended
March 31, 2000, the Funds were informed that the distributor received
$15,373,969 in front-end sales charges for sales of Investor A Shares and
$306,367 in contingent deferred sales charges from redemption of shares which
were subject to such charges. A substantial portion of these fees is paid to
affiliates of Bank of America.

The Company's and Reserves' eligible Trustees/Directors 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 Funds' 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 Nations Treasury Fund, a portfolio of the
Company. The expense for the deferred compensation and retirement plans is
included in "Trustees/Directors' fees and expenses" in the Statements of
operations.

A significant portion of each Fund's Primary A Shares represents investments by
fiduciary accounts over which Bank of America has either sole or joint
investment discretion.

3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS

The Company and Reserves each have adopted shareholder servicing plans and
distribution plans for the Investor A, Investor B and Investor C Shares of each
Fund. The shareholder servicing plans permit the Funds to compensate or
reimburse servicing agents for shareholder services provided by the servicing
agents. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940
Act, permit the Funds to compensate or reimburse the distributor (and for
Investor A Shares, the distributor and/or selling agents) for activities or
expenses primarily intended to result in the sale of the classes' shares.
Payments are made at an annual rate, as a percentage of average daily net assets
set from time to time by the Board of Trustees/Directors, and are charged as
expenses of each Fund directly to the applicable class. A substantial portion of
the expenses incurred pursuant to these plans is paid to affiliates of Bank of
America and BAAI.

At March 31, 2000, the rates in effect and plan limits, as a percentage of
average daily net assets, were as follows:

<TABLE>
<CAPTION>
CURRENT PLAN
RATE LIMIT
------------------
<S> <C> <C>
Investor A Combined Shareholder
Servicing and Distribution
Plan............................. 0.25% 0.25%
Investor B and Investor C
Shareholder Servicing Plans...... 0.25% 0.25%
Investor B and Investor C
Distribution Plans............... 0.75% 0.75%
</TABLE>

4. PURCHASES AND SALES OF SECURITIES

The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government securities and short-term investments, for the year
ended March 31, 2000 were as follows:

<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
-----------------------
<S> <C> <C>
International Value+.......... $276,234 $ 33,503
International Equity+......... 948,165 1,096,487
International Growth.......... 48,040 166,362
Emerging Markets.............. 37,018 21,006
</TABLE>

There were no purchases or sales of long-term U.S. government securities for the
year ended March 31, 2000.

+ Prior to conversion to master-feeder structure.

5. CAPITAL STOCK

As of March 31, 2000, 480,000,000,000 shares of $.001 par value capital stock
were authorized for the Company and an unlimited number of shares of beneficial
interest

55
<PAGE> 60
NATIONS FUNDS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

without par value were authorized for Reserves. The Company's Articles of
Incorporation and Reserves' Declaration of Trust authorize the Boards of
Directors/ 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.

6. LINES OF CREDIT

The Company and Reserves each participate with other Nations Funds in an
uncommitted line of credit provided by BNY under a line of credit agreement (the
"Agreement"). Advances under the Agreement are taken primarily for temporary or
emergency purposes, including the meeting of redemption requests that otherwise
might require the untimely disposition of securities. Interest on borrowings is
payable at the Federal Funds rate plus 0.50% on an annualized basis. Each
participating Fund maintains a ratio of no less than 4 to 1 net assets (not
including amounts borrowed pursuant to the Agreement) to the aggregate amount of
indebtedness pursuant to the Agreement.

At March 31, 2000, there were no loans outstanding under this Agreement. For the
year ended March 31, 2000, borrowings by the Funds under the Agreement were as
follows:

<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
-----------------------------------------------------------
<S> <C> <C>
International Growth.............. $410 6.05%
Emerging Markets.................. 84 5.59
</TABLE>

The average amount outstanding was calculated based on daily balances in the
period.

The Company and Reserves also participate with other Nations Funds in a
committed line of credit provided by BNY. Interest on borrowings under the
committed line is payable at a specified Federal Funds rate plus 0.50% on an
annualized basis. A facility fee of 0.09% per annum of the total amounts
available under the line of credit is charged, of which each Fund has agreed to
pay its pro rata share. This fee is paid quarterly in arrears. Each
participating Fund is required to maintain an asset coverage ration of at least
300% under the terms of the arrangement. For the year ended March 31, 2000,
there were no borrowings by the Funds under the committed line of credit.

7. SECURITIES LENDING

Under an agreement with BNY, certain Funds can lend their securities to approved
brokers, dealers and other financial institutions. Loans are collateralized by
cash in an amount at least equal to the market value of the securities loaned.
The cash collateral received is invested in Nations Cash Reserves. A portion of
the income generated by the investment of the collateral, net of any rebates
paid by BNY to borrowers, is remitted to BNY as lending agent, and the remainder
is paid to the Fund. Generally, in the event of counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There would be a
potential loss to the Fund in the event the Fund is delayed or prevented from
exercising its right to dispose of the collateral. The Fund bears the risk of
loss with respect to the investment of collateral.

At March 31, 2000, the following Funds had securities on loan:

<TABLE>
<CAPTION>
MARKET VALUE OF MARKET VALUE
LOANED SECURITIES OF COLLATERAL
FUND (000) (000)
---------------------------------------------------------------
<S> <C> <C>
International Growth....... $15,283 $15,979
Emerging Markets........... 11,656 12,248
</TABLE>

8. CAPITAL LOSS CARRYFORWARD

At March 31, 2000, Emerging Markets Fund had available for Federal income tax
purposes unused capital losses of $17,259,091, with $2,189,907 expiring in 2006
and $15,069,184 expiring in 2007.

At March 31, 2000, Emerging Markets Fund utilized capital losses of $1,635,307
during the year.

Under current tax law, capital and currency losses realized after October 31 may
be deferred and treated as occurring on the first day of the following fiscal
year. For the fiscal year ended March 31, 2000, Emerging Markets Fund elected to
defer losses of $63,337, occurring between November 1, 1999 and March 31, 2000
under these rules.

9. REORGANIZATIONS

On May 22, 1998, International Value Fund (the "Acquiring Fund"), a newly
established portfolio, acquired the assets and certain liabilities of The
Emerald International Equity Fund (the "Acquired Fund") pursuant to a plan of
reorganization approved by its shareholders. The acquisition was accomplished by
a tax-

56
<PAGE> 61
NATIONS FUNDS

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

free exchange of shares of the Acquiring Fund in an amount equal to the
outstanding shares of the Acquired Fund. The financial statements of the
Acquiring Fund reflect the historical financial results of the Acquired Fund
prior to the reorganization. Additionally, the fiscal year end of the Acquired
Fund for financial reporting purposes was changed to coincide with that of the
Company.

On March 30, 1999, Emerging Markets Fund (the "Acquiring Fund"), acquired the
assets and certain liabilities of Nations Pacific Growth Fund (the "Acquired
Fund"), in a taxable 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 as of the
reorganization date were as follows:

<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASETS TOTAL NET ASSETS OF ACQUIRING FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION
(000) (000) (000)
--------------------------------------------------------
<S> <C> <C>
$9,829 $14,553 $24,382
</TABLE>

ACQUISITION OF THE PACIFIC HORIZON FUNDS

On May 14, 1999, International Equity Fund (the "Acquiring Fund"), acquired the
assets and liabilities of Pacific Horizon International Equity 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 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
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
(000) (000) (000) (000)
----------------------------------------------------------------------------------
<S> <C> <C> <C>
$43,073 $766,603 $809,676 $5,349
</TABLE>

CHANGE OF REGISTERED INVESTMENT COMPANY

On August 20, 1999, International Value, International Equity and Emerging
Markets Funds, newly established shell portfolios of Reserves (the "Successor
Funds"), acquired the assets and liabilities of their predecessor funds, which
were series of Nations Fund, Inc., Nations Fund, Inc. and Nations Fund
Portfolios, Inc., respectively, pursuant to a plan of reorganization approved by
each predecessor fund's shareholders. The predecessor funds had the same name,
investment objective and principal investment strategies as the Successor Funds.
The acquisition was accomplished by a tax-free exchange of shares of the
Successor Funds in an amount equal to the value of the outstanding shares of the
predecessor funds. The financial statements of the Successor Funds reflect the
historical financial results of the predecessor funds prior to the
reorganizations.

10. SUBSEQUENT EVENT

On May 15, 2000, NB Partner Corp. transferred its ownership interest in Gartmore
to Royal Bank of Scotland. Bank of America no longer holds any ownership
interest in Gartmore.

On April 26, 2000, the Boards of Trustees/Directors of Nations Fund, Inc. and
Nations Reserves approved an Agreement and Plan of Reorganization (the "Plan")
pursuant to which International Equity Fund will acquire all of the assets of
International Growth Fund in exchange for shares of equal value of International
Equity Fund and the assumption by International Equity Fund of all liabilities
of International Growth Fund. If this Plan is approved by shareholders of
International Growth Fund, the reorganization is expected to occur in the third
quarter of 2000. Upon the closing of the reorganization, the assets received,
including the securities received in the transaction, will be contributed to the
International Equity Master Portfolio.

57
<PAGE> 62

NATIONS FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES/DIRECTORS OF NATIONS FUNDS

In our opinion, the accompanying statements of net assets, and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Nations International Value Fund, Nations International Equity Fund, Nations
International Growth Fund and Nations Emerging Markets Fund, (portfolios of
Nations Fund, Inc. or Nations Reserves, hereafter referred to as the "Funds") at
March 31, 2000, and the results of each of their operations, the changes in each
of their net assets and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Funds'
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2000 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above. The financial statements of Nations International Value Fund,
formerly Emerald International Equity Fund, for the period ended May 15, 1998
and the year ended November 30, 1997 were audited by other independent
accountants whose report dated July 1, 1998 expressed an unqualified opinion on
those statements.

As described in Note 10 to the financial statements, the Board of
Trustees/Directors have approved a reorganization plan whereby the Nations
International Growth Fund would be merged into the Nations International Equity
Fund, subject to the approval of the Nations International Growth Fund's
shareholders.

PricewaterhouseCoopers LLP
New York, New York
May 19, 2000

58
<PAGE> 63

NATIONS FUNDS
TAX INFORMATION (UNAUDITED)

For the tax year ended March 31, 2000, the amount of long-term capital gain
designated by International Value and International Equity Funds was $15,548,415
and $72,924,516, respectively.

For the year ended March 31, 2000, the total amount of income received by
International Equity and Emerging Markets from sources within foreign countries
and possessions of the United States was a total of $13,396,594 and $293,924,
respectively. The total amount of taxes paid by International Equity and
Emerging Markets to such countries was $1,451,696 and $43,271, respectively.

59
<PAGE> 64

NATIONS MASTER INVESTMENT TRUST
Nations International Value Master Portfolio and
Nations International Equity Master Portfolio Annual Report
MARCH 31, 2000

The following pages should be read in conjunction with Nations International
Value and Nations International Equity Funds' Annual Report.

60
<PAGE> 65

NATIONS MASTER INVESTMENT TRUST
Nations International Value Master Portfolio
STATEMENT OF NET ASSETS MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS -- 99.0%
BRAZIL -- 6.5%
937,000 Banco Bradesco SA, ADR............. $ 7,759
1,704,450 Centrais Eletricas Brasileiras SA,
ADR (Electrobas)++............... 15,140
20,575 Centrais Geradoras do Sul do Brasil
SA, ADR++........................ 108
882,000 Compania Cervejaria Brahma, ADR.... 14,333
474,600 Petrol Brasileiros, ADR............ 12,919
880 Tele Celular Sul Participacoes SA,
ADR.............................. 44
2,933 Tele Centro Oeste Celular
Participacoes SA, ADR............ 34
51,760 Tele Centro Sul Participacoes SA,
ADR.............................. 4,193
176 Tele Leste Celular Participacoes
SA, ADR.......................... 11
440 Tele Nordeste Celular Participacoes
SA, ADR.......................... 32
176 Tele Norte Celular Participacoes
SA, ADR.......................... 11
8,800 Tele Norte Leste Participacoes,
ADR.............................. 234
8,800 Telecomunicacoes de Sao Paulo SA,
ADR.............................. 261
440 Telemig Celular Participacoes SA,
ADR++............................ 39
3,520 Telesp Celular Participacoes SA,
ADR.............................. 200
----------
55,318
----------
CANADA -- 3.7%
458,000 Canadian National Railway
Company.......................... 12,223
1,800,000 Sun Life Financial Services of
Canada Inc.++.................... 19,350
----------
31,573
----------
DENMARK -- 1.9%
158,915 Den Danske Bank, ADR............... 16,647
----------
FRANCE -- 7.4%
479,200 Alcatel SA, ADR.................... 20,995
463,800 Compagnie Generale des
Establissements Michelin......... 14,886
23,700 Eridania Beghin-Say SA++........... 1,978
341,170 Total Fina Elf..................... 25,118
----------
62,977
----------
GERMANY -- 7.9%
304,000 BASF AG++.......................... 14,428
858,000 Bayersche Motoren Werke AG......... 27,054
151,710 Deutsche Telekom AG (REGD)++....... 11,716
46,000 Munchener Ruckvers................. 14,614
----------
67,812
----------
HONG KONG -- 5.6%
4,847,500 CLP Holdings Limited++............. 21,726
614,000 PetroChina Company Limited,
ADR++............................ 10,094
3,159,000 Swire Pacific, Ltd., Class A,
ADR.............................. 16,309
----------
48,129
----------
</TABLE>

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C> <C>
ITALY -- 4.2%
484,840 ENI SpA............................ $ 24,606
75,390 Telecom Italia SpA................. 11,459
----------
36,065
----------
JAPAN -- 12.3%
91,100 Canon, Inc. ....................... 3,929
188,000 Daiichi Pharmaceutical Company,
Ltd. ............................ 2,914
123,100 Hitachi Ltd., ADR.................. 15,003
1,230,000 Komatsu Ltd. ...................... 5,852
540,000 Komatsu Ltd., ADR.................. 10,277
43,400 Matsushita Electric Industrial
Company Ltd., ADR................ 13,150
7,863,000 Mitsubishi Heavy Industries,
Ltd. ............................ 24,762
1,164,000 Nippon Mitsubishi Oil
Corporation...................... 4,256
473,300 Tokio Marine & Fire Insurance
Company, Ltd., ADR............... 24,819
----------
104,962
----------
MEXICO -- 1.9%
236,850 Telefonos de Mexico SA, ADR........ 15,868
----------
NETHERLANDS -- 2.8%
437,595 ING Groep NV, ADR.................. 24,068
----------
NEW ZEALAND -- 1.6%
377,000 Telecom Corporation of New Zealand
Ltd., ADR........................ 13,831
----------
PORTUGAL -- 0.7%
486,800 Portugal Telecommunications SA,
ADR.............................. 6,055
----------
SINGAPORE -- 3.2%
263,453 DBS Group Holdings Ltd., ADR++..... 13,923
3,464,100 Jardine Matheson Holdings, Ltd.,
ADR.............................. 13,441
----------
27,364
----------
SOUTH AFRICA -- 2.2%
686,941 De Beers Consolidated Mines, Ltd.,
ADR.............................. 15,756
131,700 Iscor, Ltd., ADR++................. 352
379,600 South African Breweries plc++...... 2,952
----------
19,060
----------
SOUTH KOREA -- 1.7%
833,000 Korea Electric Power Corporation,
ADR.............................. 13,172
31,000 Korea Telecom Corporation, ADR..... 1,356
----------
14,528
----------
SPAIN -- 0.9%
444,333 Banco Bilbao Vizcaya Argentaria,
SA, ADR.......................... 6,609
58,200 Union Electrica Fenosa SA.......... 1,195
----------
7,804
----------
SWITZERLAND -- 6.2%
1,272,000 Allied Zurich plc, ADR++........... 27,822
184,200 Nestle SA.......................... 16,507
22,600 Swisscom AG++...................... 8,672
----------
53,001
----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 66
NATIONS MASTER INVESTMENT TRUST
Nations International Value Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM -- 27.0%
365,000 Allied Domecq plc, ADR++........... $ 1,916
137,000 BOC Group plc...................... 2,688
826,500 British Aerospace plc, ADR......... 18,565
1,775,700 British American Tobacco plc,
ADR.............................. 18,867
368,210 British Energy plc, ADR++.......... 4,787
559,500 Cadbury Schweppes plc.............. 15,876
166,140 Coats Viyella plc, ADR++........... 338
379,500 Corus Group plc, ADR............... 6,357
690,551 Diageo plc, ADR.................... 20,802
266,500 HSBC Holdings plc.................. 16,240
141,500 Imperial Chemical Industries plc,
ADR.............................. 4,563
1,421,060 Invensys plc, ADR++................ 12,673
823,465 Marks & Spencer plc, ADR++......... 19,922
840,500 National Power plc................. 17,493
403,000 PowerGen plc, ADR.................. 10,277
1,166,800 Reckitt & Benckiser plc............ 11,046
150,000 Rolls-Royce plc, ADR++............. 2,429
1,339,700 Royal & Sun Alliance Insurance
Group plc........................ 8,382
4,371,416 Safeway plc........................ 13,249
20,000 Tate & Lyle plc, ADR............... 281
933,400 Unilever plc, ADR.................. 24,384
----------
231,135
----------
VENEZUELA -- 1.3%
377,900 Cia Anonima Nacional Telefonos de
Venezuela, ADR................... 10,959
----------
TOTAL COMMON STOCKS
(Cost $804,178).................. 847,156
----------
</TABLE>

<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 38.4%
(Cost $328,754)
328,754 Nations Cash Reserves#............. $ 328,754
----------
TOTAL INVESTMENTS
(Cost $1,132,932*)........ 137.4% 1,175,910
----------
OTHER ASSETS AND LIABILITIES
(NET)..................... (37.4)%
Cash............................... $ 3,461
Receivable for investment
securities sold.................. 15,406
Dividends receivable............... 5,796
Interest receivable................ 322
Collateral on securities loaned.... (327,751)
Investment advisory fee payable.... (546)
Administration fee payable......... (34)
Payable for investment securities
purchased........................ (16,412)
Accrued Trustees' / Directors' fees
and expenses..................... (2)
Accrued expenses and other
liabilities...................... (54)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ (319,814)
----------
NET ASSETS.................. 100.0% $ 856,096
==========
</TABLE>

---------------

* Federal Income Tax Information: Net unrealized appreciation of $42,978 on
investment securities was comprised of gross appreciation of $91,977 and
gross depreciation of $48,999 for Federal income tax purposes. At March 31,
2000, the aggregate cost of securities for Federal income tax purposes was
$1,132,932.

++ Non-income producing security.

# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc. A
portion of this amount represents cash collateral received from securities
lending activity (Note 5). The portion that represents cash collateral is
$327,751.

ADR -- American Depository Receipt

SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 67

NATIONS MASTER INVESTMENT TRUST
Nations International Value Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
At March 31, 2000, sector diversification was as follows (unaudited):

<TABLE>
% OF NET VALUE
SECTOR DIVERSIFICATION ASSETS (000)
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Common stocks:
Insurance................................................... 11.1% $ 94,987
Telecommunications.......................................... 9.9 84,975
Oil and gas................................................. 8.5 72,737
Banking..................................................... 7.1 61,178
Electric power.............................................. 5.8 49,496
Electronics................................................. 5.7 49,285
Food producers.............................................. 5.0 42,869
Beverages................................................... 4.4 38,087
Automobiles and trucks...................................... 3.2 27,054
Metals and mining........................................... 3.1 26,900
Machinery and engineering................................... 2.9 24,762
Financial services.......................................... 2.8 24,068
Aerospace and defense....................................... 2.4 20,994
Retail -- Department Stores................................. 2.3 19,922
Tobacco..................................................... 2.2 18,867
Diversified................................................. 1.9 16,309
Machinery and equipment..................................... 1.9 16,129
Chemicals -- Specialty...................................... 1.9 15,876
Retail -- Food.............................................. 1.8 15,165
Electrical equipment........................................ 1.7 15,003
Other....................................................... 13.4 112,493
---------- -------------
TOTAL COMMON STOCKS......................................... 99.0 847,156
INVESTMENT COMPANIES........................................ 38.4 328,754
---------- -------------
TOTAL INVESTMENTS........................................... 137.4 1,175,910
OTHER ASSETS AND LIABILITIES (NET).......................... (37.4) (319,814)
---------- -------------
NET ASSETS.................................................. 100.0% $ 856,096
========== =============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 68

NATIONS MASTER INVESTMENT TRUST
Nations International Equity Master Portfolio
STATEMENT OF NET ASSETS MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.6%
ARGENTINA -- 0.1%
49,914 PC Holdings SA, ADR++.............. $ 855
----------
AUSTRALIA -- 1.6%
408,791 Cable and Wireless Optus++......... 1,638
18,000 Commonwealth Bank of Australia..... 246
82,000 Computershare Limited.............. 389
321,901 National Australia Bank............ 4,138
410,992 News Corporation Ltd. ............. 5,743
150,000 Rio Tinto Ltd. .................... 2,132
38,700 Telstra Corporation Ltd. .......... 179
----------
14,465
----------
BELGIUM -- 0.2%
5,569 Audiofina++........................ 685
43,119 Fortis, Series B................... 1,106
----------
1,791
----------
BRAZIL -- 1.0%
45,500 Cemig CIA Energ, ADR............... 791
86,600 Companhia Vale do Rio Doce, ADR.... 2,306
34,630 Embratel Participacoes SA, ADR..... 887
8,800 Tele Centro Sul Participacoes SA,
ADR.............................. 713
37,500 Tele Norte Leste Participacoes,
ADR.............................. 998
33,783 Telecomunicacoes de Sao Paulo SA,
ADR.............................. 1,003
42,380 Telesp Celular Participacoes SA,
ADR.............................. 2,402
----------
9,100
----------
CANADA -- 1.6%
68,743 BCE, Inc. ......................... 8,570
100,000 Canada Life Financial
Corporation...................... 1,526
36,000 Nortel Networks Corporation........ 4,515
14,200 Suncor Energy, Inc. ............... 615
----------
15,226
----------
CHILE -- 0.0%+
8,189 Enersis SA, ADR.................... 166
10,100 Telecom De Chile, ADR.............. 230
----------
396
----------
DENMARK -- 0.5%
23,000 Den Danske Bank Group.............. 2,409
30,000 Novo Nordisk A/S................... 2,058
----------
4,467
----------
FINLAND -- 3.4%
4,300 Helsingin Puhelin Oyj - E++........ 416
6,344 HPY Holding Oyj - A Shares++....... 266
109,747 Nokia AB Oy........................ 23,209
100,467 Sonera Oyj......................... 6,855
71,694 Stora Enso Oyj - R Shares.......... 768
----------
31,514
----------
FRANCE -- 11.7%
9,174 Alcatel............................ 2,013
100,000 Alcatel SA, ADR.................... 4,381
89,502 Arentis............................ 4,899
39,071 Axa................................ 5,537
18,594 Banque Nationale de Paris (BNP).... 1,468
5,569 Bouygues........................... 4,412
285 Bouygues SA++...................... 220
</TABLE>

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
FRANCE -- (CONTINUED)
5,180 Canal Plus++....................... $ 1,140
4,409 Cap Gemini SA...................... 1,194
3,500 Castorama Dubois Investissement
SA............................... 752
9,139 Compagnie De Saint-Gobain.......... 1,168
60,000 Compagnie Generale des
Establissements Michelin......... 1,926
40,000 Credit Commercial de France........ 4,995
8 Elf Aquitaine...................... 1
15,392 Equant NV++........................ 1,277
47,496 France Telecom..................... 8,181
12,080 GFI Informatique++................. 2,103
8,604 Groupe Danone...................... 1,902
5,094 Havas Advertising SA............... 2,754
19,528 Lafarge-Coppee..................... 1,665
2,698 Louis Vuitton Moet Hennessy
(LVMH)........................... 1,129
7,626 Pinault-Printemps-Redoute SA....... 1,413
3,265 Publicis SA........................ 1,750
12,052 Rexel SA........................... 826
98,358 Sanofi-Synthelabo++................ 3,751
20,006 Societe Generale................... 3,990
4,034 Societe Television Francaise I..... 2,972
13,337 St Microelectronics++.............. 2,450
4,930 Suez Lyonnaise des Eaux............ 846
166,326 Total Fina......................... 24,909
70,443 Usinor............................. 1,119
101,683 Vivendi++.......................... 11,725
----------
108,868
----------
GERMANY -- 5.6%
7,538 Allianz AG......................... 3,105
83,800 BASF AG............................ 3,985
60,000 Bayer AG........................... 2,693
143,766 Bayersche Motoren Werke AG......... 4,533
1,097 Celanese AG++...................... 22
35,355 DaimlerChrysler AG................. 2,314
92,083 Deutsche Bank AG................... 6,120
47,739 Deutsche Lufthansa AG.............. 1,074
81,462 Deutsche Telekom AG (REGD)++....... 6,291
11,144 Infineon Technologies AG++......... 576
30,000 Kamps AG........................... 1,679
25,000 PrimaCom AG++...................... 1,890
8,651 ProSieben Media AG................. 986
6,623 SAP AG............................. 4,769
119,600 SAP AG++........................... 7,146
28,670 Siemens AG......................... 4,129
19,935 Veba AG............................ 1,019
----------
52,331
----------
HOLLAND -- 0.8%
150,000 Unilever NV........................ 7,219
----------
HONG KONG -- 3.6%
5,300 Asiainfo Holdings, Inc.++.......... 321
330,800 Cable and Wire Ltd. (HK Telecom)... 867
406,000 Cheung Kong (Holdings)............. 6,074
1,173,000 China Telecom (HK)++............... 10,282
132,500 CLP Holdings....................... 594
49,000 Hang Seng Bank..................... 428
650,000 HSBC Holdings...................... 7,597
236,000 Hutchison Whampoa.................. 4,258
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 69
NATIONS MASTER INVESTMENT TRUST
Nations International Equity Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C> <C>
HONG KONG -- (CONTINUED)
636,000 Legend Holdings Ltd. .............. $ 992
60,000 Li & Fung Ltd.++................... 278
91,000 Pacific Century CyberWorks
Ltd.++........................... 213
138,000 Sun Hung Kai Properties............ 1,196
59,000 Television Broadcasting Limited.... 525
----------
33,625
----------
IRELAND -- 0.9%
142,218 Bank of Ireland.................... 1,015
218,563 CRH plc Ord. ...................... 3,922
50,533 Elan Corporation plc++............. 2,454
357,068 Smurfit (Jefferson) Ord. .......... 837
----------
8,228
----------
ITALY -- 3.9%
22,083 Bipop-Carire SpA................... 2,322
67,300 Bulgari SpA........................ 744
600,000 Enel SpA++......................... 2,687
218,726 Mediaset SpA....................... 4,345
633,543 Olivetti SpA++..................... 2,273
101,612 San Paolo - IMI SpA................ 1,391
110,329 San Paolo - IMI SpA, ADR++......... 3,144
287,340 Tecnost SpA++...................... 1,086
886,045 Telecom Italia Mobile SpA++........ 10,870
479,041 Telecom Italia SpA................. 7,151
----------
36,013
----------
JAPAN -- 23.6%
12,900 Advantest Corporation.............. 2,741
245,000 Asahi Bank......................... 1,374
352,000 Asahi Chemical Industry Company,
Ltd.............................. 2,248
7,700 Asatsu-DK Inc.++................... 391
58,000 Bridgestone Corporation............ 1,281
185,000 Canon, Inc. ....................... 8,027
188,000 Daiwa Securities Group Inc. ....... 3,538
661 DDI Corporation.................... 5,407
63 East Japan Railway................. 327
39,000 Eisai Company, Ltd. ............... 1,029
4,000 Fuji Machine Mfg. Co., Ltd. ....... 298
165,000 Fuji Photo Film.................... 7,271
37 Fuji Television Network, Inc. ..... 642
196,800 Fujitsi Ltd. ...................... 6,045
261,000 Hitachi............................ 3,102
122,000 Honda Motor Company................ 5,043
41,000 Ito-Yokado Company, Ltd. .......... 2,934
1,600 Kadokawa Shoten Publishing Company,
Ltd. ............................ 380
7,132 KDD Corporation.................... 601
4,200 Kojima Company Limited............. 121
247,000 Komatsu Ltd. ...................... 1,175
83,400 Kyocera Corporation................ 13,954
396,000 Marubeni Corporation++............. 1,494
900,000 Mitsubishi Heavy Industries,
Ltd. ............................ 2,834
704,000 Mitsubishi Materials Corporation... 2,402
243,000 Mitsui O.S.K. Lines, Ltd. ......... 481
43,700 Namco, Ltd. ....................... 1,794
217,774 NEC Corporation.................... 6,434
584,000 Nikko Securities Company, Ltd. .... 8,847
</TABLE>

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C> <C>
JAPAN -- (CONTINUED)
50,900 Nintendo Company, Ltd. ............ $ 8,958
400,000 Nippon Express Company, Ltd........ 2,975
389,000 Nippon Steel Corporation........... 929
1,428 Nippon Telegraph & Telephone
Company.......................... 22,695
4,760 Nippon Television Network
Corporation...................... 3,383
232,000 Nomura Securities.................. 7,578
83 NTT Mobile Communication Network,
Inc.............................. 3,407
7,000 Rohm Company....................... 2,437
55,000 Sankyo Company..................... 1,386
58,000 Sanwa Bank......................... 604
19,000 Secom Company...................... 1,630
101,700 Sharp Corporation.................. 2,176
60,000 Shin-Etsu Chemical Company, Ltd.... 3,644
49,300 Shinko Electric Industries......... 2,562
151,000 Shiseido Company, Limited.......... 2,054
2,600 Softbank Corporation............... 2,319
157,800 Sony Corporation................... 22,309
132,700 Sumitomo Corporation............... 1,610
65,000 Taiyo Yuden Company................ 4,202
20,100 Takefuji Corporation............... 2,156
506,000 The Bank of Tokyo-Mitsubishi....... 7,238
81,000 Tokyo Broadcasting System.......... 3,198
65,600 Tokyo Electric Power Company....... 1,439
384,000 Toshiba Corporation................ 3,916
150,000 Toyota Motor Corporation........... 7,854
20,000 Trend Micro, Inc. ................. 3,510
11,850 World Company Ltd. ................ 913
----------
219,297
----------
MALAYSIA -- 0.1%
638,000 Malaysian Resources Corporation
Berhad++......................... 722
83,000 The New Straits Times Press (M)
Berhad++......................... 369
----------
1,091
----------
MEXICO -- 2.1%
391,460 Carso Global Telecom............... 1,270
524,400 Carso Global Telecom, ADR.......... 3,540
83,100 Grupo Carso SA de CV++............. 623
81,721 Grupo Televisa, GDR++.............. 5,557
119,438 Telefonos de Mexico, ADR........... 8,002
34,099 Walmart de Mexico SA de CV,
ADR++............................ 852
----------
19,844
----------
NETHERLANDS -- 5.6%
160,000 ABN AMRO Holding NV................ 3,566
18,968 Aegon NV........................... 1,516
103,622 Akzo Nobel NV...................... 4,423
13,217 Gucci Group NV..................... 1,214
34,926 Gucci Group, ADR................... 3,106
28,971 Heineken NV........................ 1,548
186,477 Internationale Nederlanden Groep
NV............................... 10,101
17,104 Koninklijke Kpn NV................. 1,958
102,684 Philips Electronics NV............. 17,255
88,275 Royal Dutch Petroleum Company...... 5,154
9,300 Unilever NV........................ 46
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 70
NATIONS MASTER INVESTMENT TRUST
Nations International Equity Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C> <C>
NETHERLANDS -- (CONTINUED)
25,212 United Pan-Europe Communications
NV++............................. $ 1,178
21,140 Wolters Kluwer NV.................. 486
----------
51,551
----------
PORTUGAL -- 0.7%
500,000 Portugal Telecommunications SA,
ADR.............................. 6,219
----------
SINGAPORE -- 0.8%
295,000 Chartered Semiconductor++.......... 2,793
7,000 Creative Technology Ltd.++......... 222
100,895 DBS Group Holding Ltd.++........... 1,333
217,000 OMNI Industries Ltd.++............. 510
38,160 Overseas Union Bank................ 172
70,850 Overseas-Chinese Banking
Corporation Ltd.................. 439
30,000 Pacific Century Region Developments
Limited++........................ 407
77,000 Sembcorp Logistics Ltd.++.......... 545
33,000 Singapore Press Holdings, Ltd. .... 527
6,080 St Assembly Test Ltd., ADR++....... 295
----------
7,243
----------
SOUTH AFRICA -- 0.0%+
15,000 Anglo American Platinum
Corporation...................... 399
----------
SOUTH KOREA -- 2.0%
170,000 Korea Electric Power Corporation,
ADR.............................. 2,688
103,910 Korea Telecom Corporation, ADR..... 4,546
2,800 Korea Telecom Free................. 223
1,700 Locus Corporation++................ 220
28,973 Pohang Iron & Steel Company Ltd.,
ADR.............................. 797
31,905 Samsung Electronics................ 9,670
20,670 SK Telecom Company, ADR............ 806
----------
18,950
----------
SPAIN -- 2.4%
94,500 Banco Bilbao Vizcaya............... 1,389
100,000 Banco Popular Espanol.............. 3,062
15,996 Bankinter SA....................... 1,009
190,245 Endessa SA......................... 4,365
110,483 Iberdrola SA....................... 1,441
160,000 Repsol-YPF, SA..................... 3,410
15,800 Telefonica Publicidad E
Informacion, S.A.++.............. 688
278,383 Telefonica SA...................... 7,033
----------
22,397
----------
SWEDEN -- 3.2%
207,195 Ericsson (L.M.) Telephone Company,
Series B++....................... 18,202
270,847 Investor AB........................ 4,232
2,670 Netcom AB++........................ 230
21,002 Sandvik AB - A Shares.............. 540
23,997 Sandvik AB - B Shares.............. 622
17,000 SBS Broadcasting SA++.............. 1,046
27,272 Securitas AB++..................... 660
53,955 Skandia Forsakrings AB............. 2,554
</TABLE>

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C> <C>
SWEDEN -- (CONTINUED)
27,040 SKF AB - A Shares.................. $ 585
33,485 SKF AB - B Shares++................ 744
----------
29,415
----------
SWITZERLAND -- 4.1%
1,277 Ares-Serono Group++................ 4,808
4,046 Clariant AG........................ 1,523
2,048 Compagnie Financiere Richemont
AG............................... 5,204
17,658 Credit Suisse Group................ 3,515
760 Julius Baer Holdings, Ltd. ........ 2,861
70 Kudelski SA++...................... 874
1,750 Nestle SA (REGD)................... 3,136
3,367 Novartis AG (REGD)................. 4,605
175 Roche Holding AG................... 1,901
1,950 The Swatch Group AG................ 2,274
1,546 The Swatch Group AG (REGD)......... 365
6,184 UBS AG (REGD)...................... 1,625
10,000 Zurich Allied AG (REGD)............ 5,040
----------
37,731
----------
TAIWAN -- 0.7%
67,527 Advanced Semiconductor Engineering
Inc.++........................... 255
19,000 Asustek Computer Inc.++............ 238
17,000 Asustek Computer Inc., GDR......... 310
24 Asustek Computer, GDR++(+)......... 0++
348,000 Bank Sinopac++..................... 220
178,000 DBTEL Inc.++....................... 690
298,000 Far Eastern Textile Ltd.++......... 617
41,700 Hon Hai Precision Industry Company,
Ltd., GDR++...................... 1,445
214,000 Nan Ya Plastic Corporation++....... 496
64,000 President Chain Store
Corporation++.................... 299
14,700 Synnex Technology International,
GDR.............................. 463
146,000 Taiwan Semiconductor............... 984
2,000 Taiwan Semiconductor SP, ADR....... 114
160,000 United Microelectronics
Corporation, Ltd.++.............. 620
----------
6,751
----------
THAILAND -- 0.0%+
17,700 Advanced Info Services (FGN)++..... 267
----------
UNITED KINGDOM -- 17.7%
209,000 3I Group plc....................... 4,391
225,000 Abbey National plc................. 2,954
814,009 Aegis Group plc.................... 2,526
19,949 Arm Holdings plc++................. 1,216
58,000 AstraZeneca Group plc.............. 2,343
88,100 AstraZeneca Group plc.............. 3,554
118,357 Barclays plc....................... 3,162
939,604 BP Amoco plc....................... 8,596
179,803 British Aerospace.................. 1,015
40,000 British Airways plc, ADR........... 2,150
36,180 British Sky Broadcasting Group plc
("BSkyB")++...................... 1,026
537,986 British Telecommunications plc..... 10,083
214,181 Cable & Wireless plc............... 4,021
147,181 Cable and Wireless Communications
plc++............................ 2,484
32,223 Capita Group plc................... 822
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 71
NATIONS MASTER INVESTMENT TRUST
Nations International Equity Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000

<TABLE>
<CAPTION>
VALUE
SHARES (000)
------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM -- (CONTINUED)
408,030 Carlton Communications plc......... $ 4,888
42,490 Colt Telecom Group plc++........... 2,060
143,434 Compass Group...................... 1,872
125,800 Corus Group plc, ADR............... 2,107
61,760 Daily Mail and General Trust-A
NV++............................. 1,195
631,297 Diageo plc......................... 4,819
62,400 EMAP plc........................... 1,115
227,617 EMI Group plc...................... 2,473
217,960 Glaxo Wellcome plc................. 6,240
582,606 Granada Group plc.................. 6,250
175,634 Hays plc........................... 1,147
155,400 HSBC Holdings plc.................. 1,837
284,993 Invensys plc....................... 1,271
51,163 Logica............................. 1,730
68,950 Marconi plc++...................... 823
680,211 Marks & Spencer plc................ 2,743
52,500 Misys plc.......................... 732
268,208 New Dixons Group plc++............. 1,242
47,451 Ocean Group plc.................... 889
400,000 PowerGen plc....................... 2,345
527,706 ScottishPower plc.................. 4,280
1,809,644 Shell Transport and Trading Company
Ord. ............................ 15,011
466,707 Smithkline Beecham plc............. 6,164
119,638 Smiths Industries plc.............. 1,462
618,509 Tesco plc.......................... 2,072
65,490 The Sage Group plc................. 735
142,909 Unilever plc....................... 913
5,100,815 Vodafone AirTouch plc.............. 28,357
42,200 Winbond Electronics Corporation,
GDR++............................ 1,255
276,988 WPP Group plc...................... 4,869
----------
163,239
----------
UNITED STATES -- 0.7%
1 NTL Incorporated................... 0++
114,977 The News Corporation Ltd. ......... 6,467
----------
6,467
----------
TOTAL COMMON STOCKS
(Cost $728,716).................. 914,959
----------
PREFERRED STOCKS -- 0.1%
(Cost $810)
JAPAN -- 0.1%
29,300 Tokyo Broadcasting Company++(+).... 1,165
----------
WARRANTS -- 0.0%+
(Cost $245)
JAPAN -- 0.0%+
8,100 Tokyo Broadcasting Company Expire
11/17/00++( 7/8)................. 313
----------
</TABLE>

<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT COMPANIES -- 11.3%
(Cost $104,751)
104,751 Nations Cash Reserves#............. $ 104,751
----------
TOTAL INVESTMENTS
(Cost $834,522*).......... 110.0% 1,021,188
----------
OTHER ASSETS AND LIABILITIES
(NET)..................... (10.0)%
Receivable for investment
securities sold.................. $ 18,714
Dividends receivable............... 2,615
Interest receivable................ 128
Miscellaneous receivable........... 15
Collateral on securities loaned.... (97,254)
Investment advisory fee payable.... (641)
Administration fee payable......... (40)
Due to custodian................... (2,608)
Payable for investment securities
purchased........................ (13,342)
Accrued Trustees'/Directors' fees
and expenses..................... (2)
Accrued expenses and other
liabilities...................... (327)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ (92,742)
----------
NET ASSETS.................. 100.0% $ 928,446
==========
</TABLE>

---------------

* Federal Income Tax Information: Net unrealized appreciation of $177,695 on
investment securities was comprised of gross appreciation of $212,982 and
gross depreciation of $35,287 for Federal income tax purposes. At March 31,
2000, the aggregate cost of securities for Federal income tax purposes was
$843,493.

++ Non-income producing security.

+ Amount represents less than 0.1%.

++ Amount represents less than $500.

ADR -- American Depository Receipt
GDR -- Global Depository Receipt

SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 72

NATIONS MASTER INVESTMENT TRUST
Nations International Equity Master Portfolio
STATEMENT OF NET ASSETS (CONTINUED) MARCH 31, 2000
At March 31, 2000, sector diversification was as follows (unaudited):

<TABLE>
% OF NET VALUE
SECTOR DIVERSIFICATION ASSETS (000)
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Common stocks:
Telecommunications.......................................... 22.0% $ 203,864
Banking..................................................... 9.2 85,724
Oil and gas................................................. 5.7 52,782
Electronics................................................. 5.5 50,673
Drugs....................................................... 4.5 42,105
Media....................................................... 4.3 39,916
Financial services.......................................... 3.0 27,616
Electrical equipment........................................ 2.8 25,796
Electrical components....................................... 2.7 25,234
Technology.................................................. 2.6 24,451
Diversified................................................. 2.5 23,375
Utilities -- Electric....................................... 2.4 21,815
Automobiles and trucks...................................... 2.1 19,744
Insurance................................................... 2.1 19,278
Computer software........................................... 1.9 17,981
Food producers.............................................. 1.8 16,967
Chemicals -- Diversified.................................... 1.4 12,592
Metals and mining........................................... 1.2 11,186
Advertising and marketing services.......................... 1.1 10,452
Holding companies -- Diversified............................ 1.0 9,356
Other....................................................... 18.8 174,052
---------- -------------
TOTAL COMMON STOCKS......................................... 98.6 914,959
PREFERRED STOCKS............................................ 0.1 1,165
WARRANTS.................................................... 0.0 313
INVESTMENT COMPANIES........................................ 11.3 104,751
---------- -------------
TOTAL INVESTMENTS........................................... 110.0 1,021,188
OTHER ASSETS AND LIABILITIES (NET).......................... (10.0) (92,742)
---------- -------------
NET ASSETS.................................................. 100.0% $ 928,446
========== =============

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 73

NATIONS MASTER INVESTMENT TRUST
STATEMENTS OF OPERATIONS
For the period ended March 31, 2000

<TABLE>
INTERNATIONAL INTERNATIONAL
VALUE EQUITY
MASTER PORTFOLIO(a) MASTER PORTFOLIO(b)
---------------------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Dividends (Net of foreign withholding taxes of $716 and
$138, respectively)....................................... $ 7,568 $ 3,551
Interest.................................................... 811 318
Securities lending income................................... 705 433
------------------- -------------------
Total investment income................................. 9,084 4,302
------------------- -------------------
EXPENSES:
Investment advisory fee..................................... 2,561 3,296
Administration fee.......................................... 142 206
Custodian fees.............................................. 48 227
Legal and audit fees........................................ 32 32
Directors' fees and expenses................................ 9 9
Interest expense............................................ -- 99
Other....................................................... 11 27
------------------- -------------------
Total expenses.......................................... 2,803 3,896
Fees waived by investment advisor........................... (284) --
Fees reduced by credits allowed by the custodian............ (18) --
------------------- -------------------
Net expenses............................................ 2,501 3,896
------------------- -------------------
NET INVESTMENT INCOME....................................... 6,583 406
------------------- -------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from:
Security transactions..................................... 63,773 91,615
Forward foreign exchange contracts, foreign currencies and
other net assets........................................ (23) (999)
------------------- -------------------
Net realized gain/(loss) on investments..................... 63,750 90,616
------------------- -------------------
Change in unrealized appreciation/(depreciation) of:
Securities................................................ 39,211 105,282
Forward foreign exchange contracts, foreign currencies and
other net assets........................................ 54 (10)
------------------- -------------------
Net change in unrealized appreciation/(depreciation) of
investments............................................... 39,265 105,272
------------------- -------------------
Net realized and unrealized gain/(loss) on investments...... 103,015 195,888
------------------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 109,598 $ 196,294
=================== ===================
</TABLE>

---------------

(a) International Value Master Portfolio commenced operations on October 18,
1999.

(b) International Equity Master Portfolio commenced operations on October 8,
1999.

SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 74

NATIONS MASTER INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
INTERNATIONAL INTERNATIONAL
VALUE EQUITY
MASTER MASTER
PORTFOLIO PORTFOLIO
-------------- --------------
PERIOD ENDED PERIOD ENDED
3/31/00(a) 3/31/00(b)
-------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income....................................... $ 6,583 $ 406
Net realized gain/(loss) on investments..................... 63,750 90,616
Net change in unrealized appreciation/(depreciation) of
investments............................................... 39,265 105,272
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 109,598 196,294
Contributions............................................... 1,096,010 1,587,785
Withdrawals................................................. (349,512) (855,630)
-------------- --------------
Net increase/(decrease) in net assets....................... 856,096 928,446
NET ASSETS:
Beginning of period......................................... -- --
-------------- --------------
End of period............................................... $ 856,096 $ 928,446
============== ==============
</TABLE>

SUPPLEMENTARY DATA

<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES ---------------
RATIO OF TO AVERAGE RATIO OF NET RATIO OF
OPERATING NET ASSETS INVESTMENT OPERATING
EXPENSES INCLUDING INCOME/(LOSS) PORTFOLIO EXPENSES TO
TO AVERAGE INTEREST TO AVERAGE TURNOVER AVERAGE
NET ASSETS EXPENSE NET ASSETS RATE NET ASSETS
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL VALUE MASTER PORTFOLIO:
Period ended 3/31/00(a)................... 0.88%+ -- 2.31%+ 22% 0.98%+
INTERNATIONAL EQUITY MASTER PORTFOLIO:
Period ended 3/31/00(b)................... 0.92%+ 0.94%+ 0.10%+ 48% 0.94%+
</TABLE>

---------------

+ Annualized.

(a) International Value Master Portfolio commenced operations on October 18,
1999.

(b) International Equity Master Portfolio commenced operations on October 8,
1999.

SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE> 75

NATIONS MASTER INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS

Nations Master Investment Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. At March 31, 2000, the Trust offered seven separate series
or portfolios. These financial statements pertain only to International Value
Master Portfolio and International Equity Master Portfolio (each a "Master
Portfolio" and collectively, the "Master Portfolios"). Financial statements for
the other portfolios of the Trust are presented under separate cover.

The following shareholders were invested in the Master Portfolios at March 31,
2000:

<TABLE>
<S> <C>
International Value Master Portfolio:
Nations International Value Fund.............. 98.0%
Nations International Value Fund (Offshore)... 2.0%
International Equity Master Portfolio:
Nations International Equity Fund............. 98.0%
Nations International Equity Fund
(Offshore).................................. 2.0%
</TABLE>

International Value Master Portfolio and International Equity Master Portfolio
commenced operations on October 18, 1999 and October 8, 1999, respectively, upon
their receipt of certain assets and liabilities, from their corresponding Feeder
Funds, including securities with a value of $418,033,220 and $779,056,300,
respectively, and net unrealized appreciation of $3,766,563 and $81,383,979,
respectively.

1. SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make certain 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 Master Portfolios in
the preparation of their financial statements.

Foreign currency translation: The books and records of the Master Portfolios
are maintained in U.S. dollars. Foreign currencies, investments and other assets
and liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities and income and expenses are
translated on the respective dates of such transactions. Net realized foreign
currency gains and losses resulting from changes in exchange rates include
foreign currency gains and losses between trade date and settlement date of
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of a Master
Portfolio and the amounts actually received. The effects of changes in foreign
currency exchange rates on securities are not separately stated in the
Statements of operations from the effects of changes in market prices of those
securities, but are included with the net realized and unrealized gain or loss
on securities.

Forward foreign currency transactions: Generally, each Master Portfolio may
enter into forward currency exchange contracts only under two circumstances: (i)
when the Master Portfolio enters into a contract for the purchase or sale of a
security denominated in a foreign currency, to "lock" in the U.S. exchange rate
of the transaction, with such period being a short-dated contract covering the
period between transaction date and settlement date; and (ii) when the
investment adviser or sub-adviser believes that the currency of a particular
foreign country may experience a substantial movement against the U.S. dollar.
Forward foreign currency contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded by the Master
Portfolio as an unrealized gain or loss. When the contract is closed or offset
with the same counterparty, the Master Portfolio records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed or offset.

Forward foreign currency contracts will be used primarily to protect the Master
Portfolio from adverse currency movements and will generally not be entered into
for terms greater than one year. The use of forward foreign currency contracts
does not eliminate fluctuations in the underlying prices of a Master Portfolio's
investment securities; however, it does establish a rate of exchange that can be
achieved in the future. The use of forward

71
<PAGE> 76
NATIONS MASTER INVESTMENT TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

contracts involves the risk that anticipated currency movements will not be
accurately predicted. A forward contract would limit the risk of loss due to
decline in the value of a particular currency; however, it also would limit any
potential gain that might result should the value of the currency increase
instead of decrease. These contracts may involve market risk in excess of the
unrealized gain or loss reflected in the Statements of net assets. In addition,
the Master Portfolio could be exposed to risks if counterparties to the
contracts are unable to meet the terms of their contracts. The counterparty risk
exposure is, therefore, closely monitored and contracts are only executed with
high credit quality financial institutions. The Master Portfolios had no forward
foreign currency transactions outstanding at March 31, 2000.

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, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on
ex-dividend date, except that if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as soon as the Master Portfolio
is informed of the ex-dividend date.

Expenses: General expenses of the Trust are allocated to the Funds based upon
their relative net assets or other expense allocation methodologies determined
by the nature of the expense. Expenses directly attributable to a Master
Portfolio are charged to such Portfolio.

Federal income taxes: The Master Portfolios are treated as partnerships for
Federal income tax purposes and therefore are not subject to Federal income tax.
Each investor in the Master Portfolios will be taxed on its share of the Master
Portfolio's ordinary income and capital gains. The Master Portfolios may be
subject to foreign taxes on income, gains on investments or currency
repatriation, a portion of which may be recoverable. The Master Portfolios
accrue such taxes and recoveries as applicable, based upon their current
interpretation of tax rules and regulations that exist in the markets in which
they invest.

2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS

The Trust has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI"), a wholly-
owned subsidiary of Bank of America, N.A. ("Bank of America"), 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 Master Portfolios. Under the terms of the
Investment Advisory Agreement, BAAI is entitled to receive an advisory fee,
calculated daily and payable monthly, at the maximum annual rate of 0.90% of the
International Value Master Portfolio's average daily net assets and 0.80% of the
International Equity Master Portfolio's average daily net assets.

The Trust, on behalf on the International Value Master Portfolio, has entered
into a sub-advisory agreement with BAAI and Brandes Investment Partners, L.P.
("Brandes"), pursuant to which Brandes is entitled to receive a sub-advisory fee
from BAAI at the maximum annual rate of 0.50% of the Master Portfolio's average
daily net assets.

The International Equity Master Portfolio is a "multi-manager" fund, which means
that it is managed by more than one sub-adviser. Gartmore Global Partners
("Gartmore"), INVESCO Global Asset Management (N.A.), Inc. ("INVESCO") and
Putnam Investment Management, Inc. ("Putnam") each manage approximately
one-third of the assets of the Master Portfolio. Gartmore is a joint venture
structured as a general partnership between NB Partner Corp., a wholly-owned
subsidiary of Bank of America and Gartmore U.S. Ltd., a wholly-owned subsidiary
of Gartmore Investment Management plc ("Gartmore plc"), a United Kingdom
("U.K.") based holding company for a leading international fund management group
of companies. On March 6, 2000, National Westminster Bank plc, the parent
company of Gartmore plc, was sold to Royal Bank of Scotland. Pursuant to the
sub-advisory agreement, Gartmore is entitled to receive a fee from BAAI at the
maximum annual rate of 0.70% of the Master Portfolio's average daily net assets
under management. INVESCO and Putnam are entitled to receive a fee from BAAI at
the maximum annual rate of 0.65% of the first $60 million, 0.55% of the next
$130 million, 0.45% of the next $200 million and 0.40% over $390 million of the
Master Portfolio's average daily net assets under management.

Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust.
Under the co-administration agreements, Stephens and BAAI are entitled to
receive a combined fee, computed daily and paid monthly, at the maximum annual
rate of 0.05% of each Portfolio's

72
<PAGE> 77
NATIONS MASTER INVESTMENT TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

average daily net assets. The Bank of New York ("BNY") serves as
sub-administrator of the Trust pursuant to an agreement with BAAI. For the
period ended March 31, 2000, BAAI earned $397,316 for its co-administration
services.

BNY serves as the custodian of the Trust's assets. For the period ended March
31, 2000, expenses of the Master Portfolios were reduced by $17,629 under
expense offset arrangements with BNY. The Master Portfolios 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.

No officer, director or employee of Bank of America or BAAI, or any affiliate
thereof, receives any compensation from the Trust for serving as a Trustee or
officer of the Trust.

The Trust's eligible Trustees may participate in non-qualified deferred
compensation and retirement plans which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Funds' 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 Nations Treasury Fund, a portfolio of Nations Fund,
Inc, another registered investment company in the Nation's Funds family. The
expense for the deferred compensation and retirement plans is included in
"Trustees'/Directors' fees and expenses" in the Statements of operations.

International Value and International Equity Master Portfolios have made daily
investments of cash balances in the Nations Cash Reserves, a portfolio of
Reserves, pursuant to an exemptive order received from the Securities and
Exchange Commission. For the period ended March 31, 2000, the Master Portfolios
earned $2,305,632 in the aggregate from such investments, which is included in
interest income.

3. PURCHASES AND SALES OF SECURITIES

The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government securities and short-term investments, for the period
ended March 31, 2000 were as follows:

<TABLE>
<CAPTION>
PURCHASES SALES
PORTFOLIO (000) (000)
-------------------------------------------------------
<S> <C> <C>
International Value Master
Portfolio..................... $466,298 $157,210
International Equity Master
Portfolio..................... 427,597 514,327
</TABLE>

There were no purchases and sales of long-term U.S. government securities for
the period ended March 31, 2000.

4. LINES OF CREDIT

The Trust participates with other Nations Funds in an uncommitted line of credit
provided by BNY under a line of credit agreement (the "Agreement"). Advances
under the Agreement are taken primarily for temporary or emergency purposes,
including the meeting of redemption requests that otherwise might require the
untimely disposition of securities. Interest on borrowings is payable at the
Federal Funds rate plus 0.50% on an annualized basis. Each participating Master
Portfolio maintains a ratio of no less than 4 to 1 net assets (not including
funds borrowed pursuant to the Agreement) to the aggregate amount of
indebtedness pursuant to the Agreement.

At March 31, 2000, there were no loans outstanding under this Agreement. For the
period ended March 31, 2000, borrowings by the Master Portfolios under the
Agreement were as follows:

<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
PORTFOLIO (000) RATE
-----------------------------------------------------------
<S> <C> <C>
International Equity Master
Portfolio....................... $1,683 5.67%
</TABLE>

The average amount outstanding was calculated based on daily balances in the
period.

The Trust also participates with other Nations Funds in a committed line of
credit provided by BNY. Interest on borrowings under the committed line is
payable at a specified Federal Funds rate plus 0.50% on an annualized basis. A
facility fee of 0.09% per annum of the total amounts available under the line of
credit is charged, of which each Master Portfolio has agreed to pay its pro rata
share. This fee is paid quarterly in arrears. Each participating Master
Portfolio is required to maintain an asset coverage ration of at least 300%
under the terms of the arrangement. For the period ended March 31, 2000, there
were no borrowings by the Master Portfolios under the committed line of credit.

5. SECURITIES LENDING

Under an agreement with BNY, the Master Portfolios can lend their securities to
approved brokers, dealers and other financial institutions. Loans are
collateralized by cash in an amount at least equal to the market value of the
securities loaned. The cash collateral received is

73
<PAGE> 78
NATIONS MASTER INVESTMENT TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

invested in Nations Cash Reserves. A portion of the income generated by the
investment of the collateral, net of any rebates paid by BNY to borrowers, is
remitted to BNY as lending agent, and the remainder is paid to the Master
Portfolio. Generally, in the event of counterparty default, the Master Portfolio
has the right to use the collateral to offset losses incurred. There would be a
potential loss to the Master Portfolio in the event the Master Portfolio is
delayed or prevented from exercising its right to dispose of the collateral. The
Master Portfolio bears the risk of loss with respect to the investment of
collateral.

At March 31, 2000, the following Master Portfolios had securities on loan:

<TABLE>
<CAPTION>
MARKET VALUE OF MARKET VALUE OF
LOANED SECURITIES COLLATERAL
PORTFOLIO (000) (000)
---------------------------------------------------------------
<S> <C> <C>
International Value
Master Portfolio....... $317,358 $327,751
International Equity
Master Portfolio....... 92,613 97,254
</TABLE>

6. SUBSEQUENT EVENT

On May 15, 2000, NB Partner Corp. transferred its ownership interest in Gartmore
to Royal Bank of Scotland. Bank of America no longer holds any ownership
interest in Gartmore.

On April 26, 2000, the Boards of Trustees of Nations Fund, Inc. and Nations
Reserves approved an Agreement and Plan of Reorganization (the "Plan") pursuant
to which International Equity Fund will acquire all of the assets of
International Growth Fund in exchange for shares of equal value of International
Equity Fund and the assumption by International Equity Fund of all liabilities
of International Growth Fund. If this Plan is approved by shareholders of
International Growth Fund, the reorganization is expected to occur in the third
quarter of 2000. Upon the closing of the reorganization, the assets received,
including the securities received in the transaction, will be contributed to the
International Equity Master Portfolio.

74
<PAGE> 79

NATIONS MASTER INVESTMENT TRUST
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE INVESTORS AND TRUSTEES OF NATIONS MASTER INVESTMENT TRUST

In our opinion, the accompanying statements of net assets, and the related
statements of operations and of changes in net assets and the supplementary data
present fairly, in all material respects, the financial position of Nations
International Value Master Portfolio and Nations International Equity Master
Portfolio, (portfolios of Nations Master Investment Trust, hereafter referred to
as the "Portfolios") at March 31, 2000, and the results of each of their
operations, the changes in each of their net assets and the supplementary data
for the period presented, in conformity with accounting principles generally
accepted in the United States. These financial statements and supplementary data
(hereafter referred to as "financial statements") are the responsibility of the
Portfolios' management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at March 31, 2000 by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above.

PricewaterhouseCoopers LLP
New York, New York
May 19, 2000

75
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<PAGE> 82

P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.321.7854

NATIONS FUNDS

INTSTKAR (3/00)