<PAGE> 1
NATIONS RESERVES
MONEY MARKET FUNDS
SEMIANNUAL REPORT
FOR THE PERIOD ENDED
SEPTEMBER 30, 2000
Nations Cash Reserves
Nations Money Market Reserves
Nations Treasury Reserves
Nations Government Reserves
Nations Municipal Reserves
Nations California Tax Exempt Reserves
[GRAPHIC: PHOTO COLLAGE WITH KEYBOARD AND WATCH]
[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
NATIONS RESERVES MONEY MARKET FUNDS
DEAR SHAREHOLDER:
We are pleased to present the semiannual financial report for Nations Reserves
money market funds (the "Funds"). This report contains important financial
information regarding your investment for the period ended September 30, 2000.
We hope you will take a moment to review this information.
During the second and third quarters of 2000, the Federal Open Market Committee
(FOMC) met three times to discuss the nation's economic condition. A review of
economic indicators at each meeting showed that the economy was continuing to
expand rapidly and the labor market remained tight. These factors, along with
signs of emerging inflation, led the FOMC to raise rates at the May 16th meeting
by 50 basis points to 6.50%. At the June 28th and August 22nd meetings, rates
remained unchanged, while policymakers continued their inflation watch.
After the tightening in May, the Funds took advantage of the extremely steep
yield curve by extending their weighted average maturity. The Funds also added
to floating rate positions as a hedge against future rate increases when the
yield curve flattened.
2001 ECONOMIC OVERVIEW
Looking forward to 2001, we believe that the economic expansion will continue
while inflation remains in check. Real GDP growth should moderate to a more
sustainable 3.4%, compared with the 5.2% estimated for 2000. Meanwhile, we
believe lower oil prices should help consumer prices rise a more subdued 2.5% in
2001 versus the 3.3% rise of 2000. In our view, this economic setting will
probably cause the FOMC to leave interest rates unchanged for most of next year,
with some easing possible late in 2001.
Based on projected market conditions into the new year, our portfolio management
team will continue to hedge bets with floaters. With expected moderation in the
economy and a flat yield curve, the team expects to make modest extensions in
weighted average maturity.
SERVING YOUR SHORT-TERM INVESTMENT NEEDS
At Nations Funds, we are dedicated to providing you with competitive products
and services for your short-term investment and cash management needs. Nations
Reserves money market funds are managed daily, giving you access to major
sectors of the money markets while striving to keep pace with changing economic
conditions. Our marketing team is consistently striving to find new ways to make
doing business with us easier. Our sales team, intermediaries, and client
service centers are at your disposal to assist you with day-to-day investment
information.
We appreciate your business and thank you for choosing Nations Reserves money
market funds to help you with your short-term investment needs.
Sincerely,
/s/ A. Max Walker
A. Max Walker
President and Chairman of the Board
/s/ Robert H. Gordon
Robert H. Gordon
President, Banc of America Advisors
September 30, 2000
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH MONEY
MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE,
IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN MONEY MARKET FUNDS.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
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TABLE OF CONTENTS
<TABLE>
<S> <C>
FINANCIAL STATEMENTS
Statements of net assets
Nations Cash Reserves 2
Nations Money Market Reserves 8
Nations Treasury Reserves 11
Nations Government Reserves 13
Nations Municipal Reserves 15
Nations California Tax-Exempt Reserves 26
Statements of operations 34
Statements of changes in net assets 36
Statement of cash flows 40
Schedules of capital stock activity 41
Financial highlights 48
Notes to financial statements 60
</TABLE>
<TABLE>
<S> <C>
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NATIONS FUNDS [DALBAR MUTUAL FUND SERVICE]
RECOGNIZED FOR AWARD 1999]
OUTSTANDING
CUSTOMER SERVICE [DALBAR HONORS COMMITMENT TO:
FINANCIAL INTERMEDIARIES
IN RECOGNITION OF ITS COMMITMENT TO 1999]
PROVIDE SHAREHOLDERS WITH THE
HIGHEST LEVEL OF CUSTOMER SERVICE DALBAR, Inc., is a well-respected
IN THE MUTUAL FUND INDUSTRY, research firm that measures
NATIONS FUNDS RECEIVED THE DALBAR customer service levels and
MUTUAL FUND SERVICE AWARD IN 1999. establishes benchmarks in the
financial services industry.
------------------------------------------------------------------------------
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 6
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 32.1%
BANK NOTES -- 12.9%
American Express Centurion Bank
$ 150,000 6.670%(+) 10/02/00(++)............ $ 149,989
100,000 6.680%(+) 10/02/00(++)............ 100,000
100,000 6.590%(+) 10/09/00(++)............ 100,000
100,000 6.590%(+) 10/11/00(++)............ 99,994
Bank One, N.A.
275,000 6.650%(+) 10/02/00(++)............ 274,911
100,000 6.190% 10/16/00................... 99,998
100,000 6.700%(+) 10/20/00................ 99,995
100,000 7.170% 05/08/01................... 100,000
200,000 7.230% 06/11/01................... 199,974
Comerica Bank, N.A.
200,000 6.650%(+) 10/02/00(++)............ 199,916
100,000 6.660%(+) 10/02/00(++)............ 99,985
First Union National Bank
100,000 6.680%(+) 10/02/00(++)............ 100,000
150,000 6.690%(+) 10/02/00(++)............ 150,000
150,000 6.770%(+) 10/02/00(++)............ 149,995
125,000 6.890%(+) 10/02/00(++)............ 125,000
200,000 6.750%(+) 11/08/00(++)............ 200,000
200,000 6.740%(+) 11/30/00(++)............ 200,000
200,000 6.750% 02/08/01................... 200,000
100,000 6.800% 02/20/01................... 100,000
Key Bank, N.A.
200,000 6.630%(+) 10/02/00(++)............ 199,943
200,000 6.650%(+) 10/02/00(++)............ 199,932
200,000 6.675%(+) 10/27/00(++)............ 199,952
200,000 6.630%(+) 11/29/00(++)............ 199,953
175,000 National City Bank Cleveland
6.730% 02/09/01................... 174,970
350,000 National City Bank Indiana
6.600%(+) 12/21/00(++)............ 349,830
SouthTrust Bank, N.A.
300,000 6.640%(+) 10/02/00(++)............ 299,934
100,000 6.650%(+) 10/02/00(++)............ 99,946
300,000 6.703%(+) 10/30/00................ 299,986
425,000 6.700%(+) 11/08/00................ 424,973
US Bank, N.A.
200,000 6.630%(+) 10/02/00(++)............ 199,925
100,000 6.680%(+) 10/02/00(++)............ 100,000
-----------
5,499,101
-----------
CERTIFICATES OF DEPOSIT -- DOMESTIC -- 2.0%
200,000 Allfirst Bank
6.620%(+) 10/09/00(++)............ 200,000
145,000 Comerica Bank, N.A.
6.630%(+) 12/27/00(++)............ 144,958
Fleet Bank, N.A.
30,000 6.741%(+) 10/16/00(++)............ 30,027
310,000 6.714%(+) 10/26/00................ 309,992
200,000 First Union National Bank
6.750% 03/16/01................... 200,000
-----------
884,977
-----------
CERTIFICATES OF DEPOSIT -- EURO -- 0.4%
150,000 Westdeutsche Landesbanken,
Girozentrale, (London) 6.740%
02/28/01........................ 150,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT -- YANKEE -- 10.7%
$ 163,000 Bank Austria AG
6.576%(+) 10/16/00(++)............ $ 162,943
200,000 Bank of Novia Scotia, (New York)
6.780% 04/25/01................... 199,968
150,000 Barclays Bank plc, (New York)
6.680% 02/12/01................... 149,974
Bayerische Hypotheken und
Vereinsbank AG, (New York)
250,000 6.580%(+) 10/02/00(++)............ 249,858
200,000 6.615%(+) 10/02/00(++)............ 199,918
34,000 6.540%(+) 10/30/00(++)............ 33,993
Canadian Imperial Bank of
Commerce, (New York)
100,000 6.605%(+) 10/02/00(++)............ 99,952
100,000 6.618%(+) 10/02/00(++)............ 99,960
Commerzbank AG, (New York)
250,000 6.571%(+) 10/26/00(++)............ 249,958
150,000 6.580%(+) 10/30/00(++)............ 149,955
125,000 6.700% 02/20/01................... 124,977
150,000 6.750% 02/22/01................... 149,972
75,000 6.790% 03/28/01................... 74,986
300,000 6.780% 04/25/01................... 299,953
75,000 6.875% 08/10/01................... 74,985
Credit Agricole, (New York)
200,000 6.820% 04/27/01................... 199,978
195,000 6.890% 08/31/01................... 194,979
125,000 Credit Locale de France/Credit
Communal de Belgique, (New York)
5.960% 10/02/00................... 124,999
Deutsche Bank AG, (New York)
50,000 6.610%(+) 10/02/00(++)............ 49,978
100,000 6.150% 10/10/00................... 99,999
275,000 6.700% 02/28/01................... 274,947
250,000 6.700% 03/14/01................... 249,947
200,000 Landesbank Hessen-Thuringen
Girozentrale, (New York)
6.885% 04/30/01................... 199,984
175,000 National Bank of Canada, (New
York)
6.750% 02/09/01................... 174,976
Rabobank Nederland, (New York)
100,000 6.490% 01/29/01................... 99,984
125,000 6.600% 02/01/01................... 124,980
100,000 6.750% 02/22/01................... 99,989
250,000 Royal Bank of Canada
6.615%(+) 10/02/00(++)............ 249,896
100,000 United Bank of Switzerland,
(New York)
6.820% 04/27/01................... 99,989
-----------
4,565,977
-----------
TIME DEPOSITS -- EURO -- 6.1%
900,000 Bayerische Hypotheken und
Vereinsbank AG, (New York)
6.750% 10/02/00................... 900,000
500,000 Credit Agricole
6.625% 10/02/00................... 500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 7
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
TIME DEPOSITS -- EURO -- (CONTINUED)
Societe Generale
$ 180,000 6.500% 10/02/00................... $ 180,000
1,000,000 6.750% 10/02/00................... 1,000,000
-----------
2,580,000
-----------
TOTAL BANK OBLIGATIONS
(Cost $13,680,055)................ 13,680,055
-----------
CORPORATE OBLIGATIONS -- 58.5%
COMMERCIAL PAPER -- 32.4%
Amstel Funding Corporation
125,376 6.510% 10/26/00#.................. 124,809
75,000 Discount note 12/14/00............ 73,998
ANC Rental Funding Corporation
95,990 Discount note 10/06/00#........... 95,903
84,700 Discount note 10/30/00............ 84,255
Aon Corporation
50,000 Discount note 10/26/00............ 49,773
50,000 Discount note 10/27/00............ 49,764
65,000 Discount note 10/30/00............ 64,658
600,000 Associates Corporation of North
America
Discount note 10/02/00............ 599,887
AT&T Corporation
200,000 Discount note 03/14/01............ 194,088
225,000 Discount note 03/15/01............ 218,311
125,000 7.270% 06/14/01#.................. 125,000
Atlantis One Funding Corporation
182,074 6.525% 02/13/01#.................. 177,619
259,460 6.530% 02/14/01#.................. 253,059
437,069 Discount note 02/15/01#........... 426,153
Barton Capital Corporation
100,000 6.510% 10/12/00#.................. 99,801
102,444 Discount note 10/13/00#........... 102,222
BASF AG
150,000 Discount note 10/19/00............ 149,501
250,000 Discount note 10/27/00............ 248,799
50,000 Discount note 02/15/01#........... 48,761
50,000 Discount note 03/07/01............ 48,589
BAUS Funding LLC
75,000 Discount note 02/05/01............ 73,259
100,000 Discount note 02/06/01............ 97,682
200,000 Bavaria TRR Corporation
Discount note 10/11/00............ 199,638
73,000 Beta Finance, Inc.
Discount note 03/08/01#........... 70,914
110,000 Countrywide Home Loans Inc.
Discount note 10/02/00............ 109,979
Eaton Corporation
50,000 Discount note 11/15/00#........... 49,592
100,000 Discount note 02/14/01............ 97,495
300,000 Edison Securitization LLC
Discount note 10/19/00#........... 299,024
Falcon Asset Securitization
Corporation
118,909 Discount note 10/20/00#........... 118,500
119,892 Discount note 10/25/00#........... 119,371
100,000 Discount note 10/31/00............ 99,456
100,000 Discount note 11/15/00............ 99,185
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
Galaxy Funding Corporation
$ 60,000 Discount note 10/12/00#........... $ 59,880
200,000 6.530% 10/31/00#.................. 198,912
75,000 6.510% 12/11/00#.................. 74,037
100,000 Discount note 12/15/00#........... 98,644
84,385 Discount note 12/21/00#........... 83,151
GE Capital International Funding,
Inc.
75,000 6.520% 02/05/01#.................. 73,275
100,000 Discount note 02/12/01#........... 97,581
150,000 Discount note 02/20/01#........... 146,154
150,000 General Electric Capital
Corporation
6.530% 02/08/01................... 146,463
General Electric Capital Services,
Inc.
150,000 Discount note 02/14/01............ 146,305
64,000 Discount note 02/28/01............ 62,253
270,000 General Motors Corporation
6.720% 10/02/00................... 269,950
Greyhawk Funding LLC
300,000 Discount note 10/02/00............ 299,944
130,000 Discount note 11/15/00#........... 128,944
100,000 Discount note 12/15/00#........... 98,648
410,000 Johnson Controls, Inc.
Discount note 10/02/00............ 409,922
Jupiter Securitization Corporation
225,000 Discount note 10/13/00............ 224,511
190,585 Discount note 10/20/00............ 189,929
233,090 Discount note 10/26/00............ 232,031
103,000 Discount note 10/31/00............ 102,438
235,000 Lehman Brothers Holdings Inc.
Discount note 12/06/00............ 232,083
Lone Star Funding LLC
93,485 Discount note 10/05/00#........... 93,417
100,000 6.530% 10/11/00#.................. 99,819
178,992 Discount note 10/18/00#........... 178,439
Mitsubishi International
Corporation
20,000 Discount note 10/12/00............ 19,960
50,000 Discount note 10/13/00............ 49,891
70,000 Discount note 11/10/00............ 69,491
MOAT Funding LLC
150,000 6.550% 02/14/01#.................. 146,288
50,000 Discount note 02/22/01............ 48,700
200,000 6.500% 02/26/01#.................. 194,656
175,000 Discount note 03/22/01#........... 169,590
200,000 Discount note 05/15/01............ 191,826
Moriarty Ltd.
100,000 Discount note 10/10/00............ 99,835
100,000 Discount note 11/27/00#........... 98,927
200,000 Discount note 02/07/01............ 195,277
150,000 Discount note 02/09/01............ 146,425
50,000 Discount note 02/28/01............ 48,640
94,000 Discount note 03/12/01#........... 91,251
74,500 Discount note 03/26/01#........... 72,140
Ness LLC
90,000 Discount note 02/21/01#........... 87,673
100,000 Discount note 03/13/01#........... 97,052
98,340 Discount note 03/15/01#........... 95,410
100,000 Discount note 03/22/01#........... 96,894
118,484 North Coast Funding LLC
Discount note 10/30/00#........... 117,858
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
Park Avenue Receivables
$ 250,000 6.510% 10/13/00#.................. $ 249,458
190,820 Discount note 10/23/00#........... 190,060
100,533 Discount note 10/25/00............ 100,095
100,523 Discount note 10/26/00#........... 100,068
Salomon Smith Barney Holdings Inc.
180,000 Discount note 10/12/00............ 179,643
200,000 Discount note 10/31/00............ 198,917
Surrey Funding Corporation
100,000 6.520% 10/25/00#.................. 99,565
150,000 6.510% 10/26/00#.................. 149,322
Trident Capital Finance, Inc.
200,000 Discount note 10/11/00#........... 199,638
250,000 Discount note 10/26/00............ 248,868
100,129 Tulip Funding Corporation
Discount note 02/05/01#......... 97,821
100,000 Unilever Capital Corporation
Discount note 10/31/00.......... 99,458
109,833 Variable Funding Capital
Corporation
Discount note 10/02/00#........... 109,812
Venture Business Trust
100,000 Discount note 10/19/00............ 99,673
100,000 Discount note 12/11/00#........... 98,718
Victory Receivables Corporation
70,446 Discount note 10/10/00#........... 70,331
104,066 Discount note 10/20/00#........... 103,707
121,046 6.520% 12/14/00#.................. 119,424
50,000 WCP Funding Inc.
Discount note 12/19/00............ 49,287
200,000 Wells Fargo and Company
Discount note 12/28/00............ 196,817
100,000 Windmill Funding Corporation
Discount note 10/25/00#........... 99,566
World Omni Vehicle Leasing, Inc.
334,325 Discount note 12/11/00#........... 330,031
50,000 Discount note 12/12/00............ 49,348
-----------
13,793,186
-----------
CORPORATE BONDS AND NOTES -- 26.1%
American Honda Finance Corporation
100,000 6.610%(+) 10/06/00(++)##.......... 99,995
50,000 6.610%(+) 10/09/00(++)##.......... 49,997
50,000 6.610%(+) 10/09/00(++(##.......... 49,997
100,000 6.610%(+) 10/09/00(++)##.......... 99,995
100,000 6.620%(+) 10/09/00(++)##.......... 100,000
100,000 6.730%(+) 10/12/00(++)............ 100,000
125,000 6.730%(+) 10/12/00(++)##.......... 125,000
100,000 6.624% 10/20/00(++)............... 100,000
200,000 6.632%(+) 10/24/00(++)............ 200,000
AT&T Corporation
200,000 6.751%(+) 10/13/00(++)##.......... 200,000
650,000 6.653%(+) 10/19/00(++)............ 650,001
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Bear, Stearns and Company, Inc.
$ 200,000 6.730%(+) 10/02/00(++)............ $ 200,000
250,000 6.750%(+) 10/02/00(++)............ 250,000
250,000 6.810%(+) 10/02/00(++)............ 250,000
150,000 6.670%(+) 10/30/00(++)............ 150,000
125,000 6.730%(+) 11/08/00................ 125,000
100,000 6.560% 01/11/01................... 100,000
50,000 7.150% 05/03/01##................. 50,000
Beta Finance, Inc.
75,000 6.748%(+) 10/03/00(++)##.......... 75,000
100,000 6.783%(+) 10/03/00(++)##.......... 100,000
75,000 6.850% 04/24/01##................. 75,000
100,000 7.200% 05/08/01##................. 100,000
85,000 7.210% 06/11/01##................. 85,000
393,300 British Telecommunications plc
6.600%(+) 10/27/00(++)............ 393,253
50,000 Caterpillar, Inc.
6.700%(+) 12/01/00(++)............ 50,000
CC (USA) Inc.
50,000 6.743%(+) 10/04/00(++)##.......... 50,000
100,000 6.850% 04/17/01##................. 100,000
85,000 7.210% 06/11/01##................. 85,000
CIT Group Inc.
60,000 6.600%(+) 10/02/00(++)............ 59,973
175,000 6.650%(+) 10/02/00(++)............ 174,945
265,000 6.604%(+) 12/06/00(++)............ 264,911
25,000 Constellation Energy Group
6.739%(+) 12/21/00(++)............ 25,000
150,000 Credit Suisse First Boston, Inc.
6.614%(+) 10/20/00(++)............ 149,987
175,000 Ford Motor Credit Company
6.580%(+) 12/11/00................ 174,980
General Motors Acceptance
Corporation
10,000 6.964%(+) 10/16/00(++)............ 10,017
450,000 6.570%(+) 12/14/00................ 449,920
Goldman Sachs Group, Inc.
250,000 6.740% 10/10/00(--)............... 250,000
400,000 6.990% 12/11/00(--)............... 400,000
200,000 6.840% 02/15/01(--)............... 200,000
150,000 6.800% 02/27/01(--)............... 150,000
150,000 6.830% 06/04/01(--)............... 150,000
150,000 Household Finance Corporation
6.690(%)+ 10/16/00(++)............ 150,000
KeyCorp
40,000 6.940%(+) 10/23/00................ 40,000
150,000 6.684%(+) 10/26/00(++)............ 149,952
100,000 6.840%(+) 10/27/00##.............. 99,997
100,000 6.660%(+) 11/15/00(++)............ 99,988
Lehman Brothers Holdings Inc.
250,000 6.870%(+) 10/02/00(++)............ 250,000
200,000 6.890%(+) 10/18/00(++)............ 200,000
50,000 6.375% 10/23/00................... 50,000
Links Finance LLC
25,000 6.290% 10/18/00##................. 25,000
25,000 6.290% 10/19/00##................. 25,000
25,000 6.810%(+) 10/20/00##.............. 25,000
25,000 6.708%(+) 11/16/00................ 25,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Merrill Lynch and Company
$ 100,000 6.750%(+) 10/02/00(++)................ $ 99,989
200,000 6.750%(+) 11/07/00(++)................ 199,977
300,000 Morgan Stanley Dean Witter and
Company
6.646%(+) 11/15/00(++)................ 300,000
250,000 Northern Rock plc
6.870% 04/20/01##..................... 250,000
135,000 SBC Communications Inc.
6.661%(+) 11/01/00(++)##.............. 135,000
Sigma Finance, Inc.
200,000 6.700%(+) 10/02/00(++)##.............. 200,000
150,000 6.743%(+) 10/04/00(++)................ 150,000
75,000 6.743%(+) 10/04/00(++)##.............. 75,000
100,000 6.610%(+) 10/12/00(++)##.............. 100,000
200,000 6.641%(+) 10/16/00(++)##.............. 200,000
150,000 6.870% 03/30/01##..................... 149,989
200,000 7.470% 06/05/01....................... 200,000
250,000 SMM Trust Series 1999-B
6.660%(+) 12/13/00##.................. 250,000
100,000 SMM Trust Series 2000-A
6.640%(+) 10/16/00(++)................ 100,000
75,000 SMM Trust Series 2000-E
6.641%(+) 10/16/00(++)##.............. 75,000
500,000 Unilever Capital Corporation
6.683%(+) 10/09/00(++)##.............. 500,000
531,000 Verizon Communications
6.680%(+) 12/11/00.................... 530,928
-----------
11,128,791
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $24,921,977).............. 24,921,977
-----------
FUNDING AGREEMENTS -- 2.0%
Allstate Life Insurance Company
25,000 6.714%(+) 10/01/00(++)(--)............ 25,000
25,000 6.714%(+) 10/01/00(++)(--)............ 25,000
First Allmerica Financial Life
Insurance Company
50,000 6.960%(+) 10/02/00(++)(--)............ 50,000
50,000 6.770%(+) 11/15/00(++)(--)............ 50,000
50,000 6.780%(+) 12/22/00(++)(--)............ 50,000
GE Life and Annuity Assurance
Company
50,000 6.599%(+) 10/01/00(++)(--)............ 50,000
25,000 6.599%(+) 10/01/00(++)(--)............ 25,000
Jackson National Life Insurance
Company
50,000 6.750%(+) 10/02/00(++)(--)............ 50,000
50,000 6.880%(+) 10/02/00(++)(--)............ 50,000
150,000 New York Life Insurance Company
6.899%(+) 11/15/00(--)................ 150,000
60,000 Security Life of Denver Insurance
Company
6.879%(+) 10/26/00(++)(--)............ 60,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
FUNDING AGREEMENTS -- (CONTINUED)
Transamerica Occidental Life
Insurance Company
$ 117,000 6.870%(+) 10/02/00(++)(--)............ $ 117,000
125,000 6.880%(+) 10/02/00(++)(--)............ 125,000
20,000 6.840%(+) 11/01/00(++)(--)............ 20,000
-----------
TOTAL FUNDING AGREEMENTS
(Cost $847,000)................. 847,000
-----------
MUNICIPAL BONDS AND NOTES -- 0.4%
28,800 Illinois Student Assistance
Commission Revenue, Series
1990B, (GTD STD LNS, First
National Bank of Chicago LOC),
6.600%(+) 10/03/00(++).............. 28,800
16,000 Missouri State Economic
Development Export Revenue,
(Biocraft Labs, Inc. Project)
Series 1989, (PNC Bank LOC),
6.700%(+) 10/03/00(++)................ 16,000
140,000 Virginia State Housing Development
Authority Commonwealth Revenue,
Series 1996E,
6.650%(+) 10/03/00(++)............ 140,000
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $184,800)................... 184,800
-----------
REPURCHASE AGREEMENTS -- 6.8%
19,106 Agreement with the Bank of New
York, 6.500% dated 09/29/00 to
be repurchased at $19,116 on
10/02/00 collateralized by:
$19,488 U.S. Treasury Note,
6.750% due 05/15/05............... 19,106
150,000 Agreement with Barclays Capital
Inc., 6.750% dated 09/29/00 to
be repurchased at $150,084 on
10/02/00 collateralized by:
$101,437 FNMA, 5.470% due
02/19/02; $26,640 FHLB, 7.250%
due 05/15/02; $24,924 FMAC,
discount note due 08/16/01........ 150,000
710,000 Agreement with Goldman Sachs and
Company, 6.730% dated 09/29/00
to be repurchased at $710,398 on
10/02/00 collateralized by:
$906,048 Various Commercial
Paper, discount note - 6.550%
due 10/02/00 - 12/18/00........... 710,000
175,000 Agreement with Goldman Sachs and
Company, 6.780% dated 09/29/00
to be repurchased at $175,099 on
10/02/00 collateralized by:
$906,048 Various Commercial
Paper, discount note - 6.550%
due 10/02/00 - 12/18/00........... 175,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$1,300,000 Agreement with J.P. Morgan
Securities Inc., 6.780% dated
09/29/00 to be repurchased at
$1,300,735 on 10/02/00
collateralized by: $918,000 Euro
Certificates of Deposit,
6.590% - 6.720% due 11/30/00 -
03/19/01........................ $ 1,300,000
160,000 Agreement with Lehman Brothers
Inc., 6.800% dated 09/29/00 to
be repurchased at $160,091 on
10/02/00 collateralized by:
$163,202 Various Commercial
Paper, discount note due
10/02/00 - 02/28/01............. 160,000
51,000 Agreement with Salomon Smith
Barney Inc., 6.650% dated
09/29/00 to be repurchased at
$51,028 on 10/02/00
collateralized by: $307,020
GNMA, discount note - 8.500% due
03/15/23 - 02/15/30............. 51,000
100,000 Agreement with Salomon Smith
Barney Inc., 6.650% dated
09/29/00 to be repurchased at
$100,055 on 10/02/00
collateralized by: $16,583 U.S.
Treasury Notes, 3.375% - 8.500%
due 11/15/00 - 08/15/10; $16,292
U.S. Treasury Bonds, 3.875% -
14.000% due 12/15/01 - 05/15/30;
$19,837 U.S. Treasury Strips,
Interest Only,
02/15/01 - 11/15/28; $4,851 U.S.
Treasury Strips, Principal Only,
02/15/01 - 02/15/29; $2,279 U.S.
Treasury Bills, discount note
due 10/12/00 - 05/31/01; $26,985
FNMA, discount note due
06/01/30; $13,512 FMAC, discount
note due 06/01/03............... 100,000
250,000 Agreement with Salomon Smith
Barney Inc., 6.650% dated
09/29/00 to be repurchased at
$250,139 on 10/02/00
collateralized by: $307,020
GNMA, discount note - 8.500% due
03/15/23 - 02/15/30............. 250,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,915,106)............... 2,915,106
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
------------------------------------------------------------
<C> <S> <C> <C>
TOTAL INVESTMENTS
(Cost $42,548,938*)...... 99.8% $42,548,938
-----------
OTHER ASSETS AND
LIABILITIES (NET)........ 0.2%
Cash.............................. $ 6
Receivable for investment
securities sold................. 8,636,545
Receivable for Fund shares sold... 1,989,580
Interest receivable............... 332,467
Payable for Fund shares
redeemed........................ (3,040,305)
Investment advisory fee payable... (7,425)
Administration fee payable........ (1,910)
Shareholder servicing and
distribution fees payable....... (11,918)
Distributions payable............. (218,810)
Payable for investment securities
purchased....................... (7,594,896)
Accrued Trustees' fees and
expenses........................ (130)
Accrued expenses and other
liabilities..................... (1,284)
-----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)........................... 81,920
-----------
NET ASSETS................. 100.0% $42,630,858
===========
NET ASSETS CONSIST OF:
Undistributed net investment
income.......................... $ 27
Accumulated net realized loss on
investments sold................ (2,614)
Paid-in capital................... 42,633,445
-----------
NET ASSETS........................ $42,630,858
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS RESERVES MONEY MARKET FUNDS
Nations Cash Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<C> <S> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($11,338,200,226 / 11,339,196,274
shares outstanding)............. $1.00
=====
TRUST CLASS SHARES:
($1,785,118,250 / 1,785,118,847
shares outstanding)............. $1.00
=====
LIQUIDITY CLASS SHARES:
($1,682,612,734 / 1,682,611,378
shares outstanding)............. $1.00
=====
ADVISER CLASS SHARES:
($4,443,321,286 / 4,444,051,316
shares outstanding)............. $1.00
=====
INVESTOR CLASS SHARES:
($8,165,879,325 / 8,166,691,783
shares outstanding)............. $1.00
=====
MARKET CLASS SHARES:
($2,982,910,911 / 2,982,910,302
shares outstanding)............. $1.00
=====
DAILY CLASS SHARES:
($11,596,434,942 / 11,596,946,260
shares outstanding)............. $1.00
=====
SERVICE CLASS SHARES:
($626,382,307 / 626,420,287 shares
outstanding).................... $1.00
=====
INVESTOR B SHARES:
($9,472,876 / 9,472,879 shares
outstanding).................... $1.00
=====
INVESTOR C SHARES:
($524,892 / 524,892 shares
outstanding).................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
(+) Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
(++) Reset date. Interest rates reset either daily, weekly, monthly or
quarterly.
(--) Restricted Security (Note 5).
# Security not registered under the Securities Act of 1933, as amended. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
BANK OBLIGATIONS -- 27.9%
BANK NOTES -- 8.2%
$ 50,000 American Express Centurion Bank
6.670%(+) 10/02/00(++).............. $ 49,996
Bank One, N.A.
40,000 6.709%(+) 12/21/00(++).............. 40,004
50,000 7.170% 05/08/01..................... 50,000
100,000 Comerica Bank, N.A.
6.650%(+) 10/02/00(++).............. 99,958
First Union National Bank
50,000 6.770%(+) 10/02/00(++).............. 49,998
50,000 6.670%(+) 12/19/00(++).............. 50,000
50,000 6.680%(+) 12/20/00(++).............. 50,000
30,000 First USA Bank
6.690%(+) 11/10/00(++).............. 29,996
50,000 National City Bank Indiana
6.600%(+) 12/21/00(++).............. 49,976
50,000 SouthTrust Bank, N.A.
6.700%(+) 11/08/00.................. 49,997
40,000 US Bank, N.A.
6.635%(+) 10/02/00(++).............. 39,990
----------
559,915
----------
CERTIFICATES OF DEPOSIT -- EURO -- 0.7%
50,000 Westdeutsche Landesbank,
Girozentrale, (London)
6.750% 02/28/01................... 50,001
----------
CERTIFICATES OF DEPOSIT -- YANKEE -- 13.9%
50,000 Bank Austria
6.650%(+) 10/02/00(++).............. 49,995
200,000 Bayerische Hypotheken und
Vereinsbank AG, (New York)
6.580%(+) 10/02/00(++).............. 199,887
Bayerische Landesbank Girozentrale,
(New York)
50,000 6.541%(+) 10/02/00(++).............. 49,989
50,000 6.540%(+) 12/15/00.................. 49,987
Commerzbank AG, (New York)
22,000 6.820% 04/27/01..................... 21,996
25,000 6.875% 08/10/01..................... 24,995
75,000 Credit Agricole, (New York)
6.890% 08/31/01..................... 74,993
100,000 Deutsche Bank AG, (New York)
6.610%(+) 10/02/00(++).............. 99,956
50,000 Landesbank Hessen-Thuringen
Girozentrale, (New York)
6.885% 04/30/01..................... 49,996
75,000 National Bank of Canada, (New York)
6.675%(+) 11/22/00.................. 74,996
50,000 National Westminster Bank plc,
(New York)
6.470% 01/18/01..................... 49,993
Rabobank Nederland, (New York)
50,000 6.460% 01/10/01..................... 49,993
50,000 6.475% 01/18/01..................... 49,993
50,000 6.490% 01/29/01..................... 49,992
50,000 6.600% 02/01/01..................... 49,992
----------
946,753
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
TIME DEPOSITS -- EURO -- 5.1%
$100,000 Bayerische Hypotheken-und-
Vereinsbank AG
6.750% 10/02/00................... $ 100,000
150,000 Chase Manhattan Bank USA, N.A.
6.688% 10/02/00................... 150,000
100,000 Societe Generale
6.750% 10/02/00................... 100,000
----------
350,000
----------
TOTAL BANK OBLIGATIONS
(Cost $1,906,669)................. 1,906,669
----------
CORPORATE OBLIGATIONS -- 59.9%
COMMERCIAL PAPER -- 31.4%
75,000 Amstel Funding Corporation
6.510% 10/26/00#.................. 74,661
60,000 Asset Securitization Cooperative
Corporation
6.500% 10/12/00#.................. 59,881
Atlantis One Funding Corporation
50,000 6.530% 02/14/01#.................. 48,767
100,000 Discount note 02/15/01#........... 97,500
51,689 Barton Capital Corporation
6.510% 10/12/00#.................. 51,586
50,000 BASF AG
6.510% 02/21/01#.................. 48,707
25,000 BAUS Funding LLC
Discount note 02/05/01............ 24,420
100,000 Citibank Capital Markets Assets LLC
6.510% 10/25/00................... 99,566
75,000 Edison Securitization LLC
6.560% 10/16/00#.................. 74,795
Galaxy Funding Corporation
58,000 6.530% 10/31/00#.................. 57,684
63,000 6.510% 12/11/00#.................. 62,191
50,000 GE Capital International Funding,
Inc.
6.520% 02/05/01#.................. 48,850
50,000 General Electric Capital Corporation
6.530% 02/08/01................... 48,821
25,000 General Electric Capital Services,
Inc.
Discount note 02/14/01............ 24,384
200,000 General Motors Corporation
6.720% 10/02/00................... 199,962
Greyhawk Funding LLC
25,000 Discount note 11/15/00#........... 24,797
50,000 6.550% 01/31/01#.................. 48,890
67,365 Jupiter Securitization Corporation
6.550% 10/27/00#.................. 67,046
48,173 Lone Star Funding LLC
6.530% 10/11/00#.................. 48,086
MOAT Funding LLC
100,000 6.520% 10/30/00#.................. 99,475
25,000 6.550% 02/14/01#.................. 24,381
50,000 6.500% 02/26/01#.................. 48,664
Moriarty Ltd.
50,000 Discount note 02/07/01............ 48,819
100,000 Discount note 02/15/01#........... 97,515
50,000 Ness LLC
6.570% 02/16/01#.................. 48,741
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER -- (CONTINUED)
$100,569 Park Avenue Receivables
6.510% 10/13/00#.................... $ 100,350
Surrey Funding Corporation
50,000 6.520% 10/25/00#.................... 49,783
50,000 6.510% 10/26/00#.................... 49,774
Transamerica Finance Corporation
100,000 6.570% 10/20/00..................... 99,653
100,000 6.530% 10/30/00..................... 99,474
100,000 Trident Capital Finance, Inc.
Discount note 10/26/00.............. 99,547
22,750 Unilever Capital Corporation
Discount note 10/31/00.............. 22,627
50,000 Victory Receivables Corporation
6.520% 12/14/00#.................... 49,330
----------
2,148,727
----------
CORPORATE BONDS AND NOTES -- 28.5%
50,000 Abbey National Treasury Services plc
6.470% 01/18/01..................... 49,993
150,000 AT&T Corporation
6.653%(+) 10/19/00(++).............. 150,000
75,000 Bank One Corporation
6.714%(+) 12/07/00.................. 75,004
5,050 Bear, Stearns and Company, Inc.
6.800%(+) 10/10/00.................. 5,050
Beta Finance, Inc.
75,000 6.748%(+) 10/03/00(++)##............ 75,000
25,000 6.850% 04/24/01##................... 25,000
50,000 British Telecommunications plc
6.600%(+) 10/27/00(++).............. 49,990
CC (USA) Inc.
100,000 6.743%(+) 10/04/00(++)##............ 100,000
20,000 6.850% 04/17/01##................... 20,000
50,000 Chase Manhattan Corporation
6.904%(+) 12/08/00.................. 50,020
75,000 Ford Motor Credit Company
6.580%(+) 12/11/00.................. 74,992
50,000 General Motors Acceptance
Corporation
6.570%(+) 12/14/00.................. 49,991
Goldman Sachs Group, Inc.
25,000 6.840% 02/15/01(--)................. 25,000
25,000 6.800% 02/27/01(--)................. 25,000
75,000 6.830% 06/04/01(--)................. 75,000
K2 (USA) LLC
50,000 6.624%(+) 10/20/00(++)##............ 50,000
45,000 6.640%(+) 12/22/00(++)##............ 45,000
50,000 6.800% 02/15/01##................... 50,000
Links Finance LLC
35,000 6.830%(+) 10/18/00.................. 35,000
100,000 6.630%(+) 10/20/00(++).............. 100,000
25,000 6.810%(+) 10/20/00##................ 25,000
Merrill Lynch and Company
75,000 6.750%(+) 10/02/00(++).............. 74,991
30,000 6.750%(+) 10/02/00(++).............. 29,996
100,000 Morgan Stanley Dean Witter and
Company
6.646%(+) 10/15/00(++).............. 100,000
85,000 SBC Communications Inc.
6.661%(+) 11/01/00(++)##............ 85,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
Sigma Finance, Inc.
$ 50,000 6.610%(+) 10/12/00(++)##............ $ 50,000
50,000 6.635%(+) 12/15/00(++).............. 50,000
50,000 6.850% 04/17/01##................... 50,000
50,000 SMM Trust Series 1999-B
6.660%(+) 12/13/00##................ 50,000
45,000 SMM Trust Series 1999-J
6.730%(+) 12/13/00.................. 45,000
56,000 SMM Trust Series 2000-A
6.640%(+) 10/16/00(++).............. 56,000
154,000 Toyota Motor Credit Corporation
6.868%(+) 10/25/00##.............. 154,028
50,000 Unilever Capital Corporation
6.683%(+) 10/07/00(++)##............ 50,000
----------
1,950,055
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,098,782)................. 4,098,782
----------
MORTGAGE-BACKED SECURITIES -- 0.4%
(Cost $25,500)
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.4%
25,500 Textron Financial Corporation,
Series 2000B, Class A-1,
6.670% 10/15/01##................. 25,500
----------
REPURCHASE AGREEMENTS -- 11.8%
200,000 Agreement with Goldman Sachs and
Company, 6.730% dated 09/29/00 to
be repurchased at $200,112 on
10/02/00 collateralized by:
$205,393 Various Commercial Paper,
discount note - 6.560% due
10/20/00 - 01/30/01............... 200,000
100,000 Agreement with J.P. Morgan
Securities Inc., 6.780% dated
09/29/00 to be repurchased at
$100,057 on 10/02/00
collateralized by: $102,000 Euro
Certificate of Deposit, 6.610% due
12/29/00.......................... 100,000
503,877 Agreement with Salomon Smith Barney
Inc., 6.700% dated 09/29/00 to be
repurchased at $504,158 on
10/02/00 collateralized by: $8,580
U.S. Treasury Strips, Interest
Only, due 10/15/00 - 10/15/19;
$115,063 FMAC, discount
note - 8.125% due
12/15/00 - 07/01/30; $128,902
FHLB, discount note - 4.875% due
12/22/00 - 06/30/23; $24,754 FARM,
discount note - 9.375% due
10/02/00 - 06/16/08; $236,655
FNMA, discount note - 7.560% due
10/02/00 - 05/15/30............... 503,877
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $803,877)................... 803,877
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS RESERVES MONEY MARKET FUNDS
Nations Money Market Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $6,834,828*)...... 100.0% $ 6,834,828
-----------
OTHER ASSETS AND
LIABILITIES (NET)....... 0.0%
Cash.............................. $ 1
Receivable for investment
securities sold................. 1,552,338
Receivable for Fund shares sold... 352,649
Interest receivable............... 43,526
Payable for Fund shares
redeemed........................ (362,967)
Investment advisory fee payable... (1,063)
Administration fee payable........ (190)
Shareholder servicing and
distribution fees payable....... (987)
Distributions payable............. (40,377)
Payable for investment securities
purchased....................... (1,545,904)
Accrued Trustees' fees and
expenses........................ (32)
Accrued expenses and other
liabilities..................... (163)
-----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)........................... (3,169)
-----------
NET ASSETS................ 100.0% $ 6,831,659
===========
NET ASSETS CONSIST OF:
Undistributed net investment
income.......................... $ 4
Accumulated net realized loss on
investments sold................ (2)
Paid-in capital................... 6,831,657
-----------
NET ASSETS........................ $ 6,831,659
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($4,060,104,800 / 4,060,094,893
shares outstanding)............. $1.00
=====
TRUST CLASS SHARES:
($9,082,295 / 9,082,316 shares
outstanding).................... $1.00
=====
LIQUIDITY CLASS SHARES:
($545,929,969 / 545,930,403 shares
outstanding).................... $1.00
=====
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<C> <S> <C> <C>
ADVISER CLASS SHARES:
($590,975,030 / 590,976,448 shares
outstanding).................... $1.00
=====
INVESTOR CLASS SHARES:
($7,118,727 / 7,118,733 shares
outstanding).................... $1.00
=====
MARKET CLASS SHARES:
($1,432,994,428 / 1,433,000,010
shares outstanding)............. $1.00
=====
DAILY CLASS SHARES:
($4,419,335 / 4,419,320 shares
outstanding).................... $1.00
=====
SERVICE CLASS SHARES:
($178,847,901 / 178,848,130 shares
outstanding).................... $1.00
=====
INVESTOR B SHARES:
($2,186,393 / 2,186,393 shares
outstanding).................... $1.00
=====
INVESTOR C SHARES:
($10 / 10 shares outstanding)..... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
(+) Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
(++) Reset date. Interest rates reset either daily, weekly, monthly or
quarterly.
(--) Restricted Security (Note 5).
# Security not registered under the Securities Act of 1933, as amended. These
securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 15.4%
U.S. TREASURY NOTES -- 15.4%
$ 155,000 4.000% 10/31/00................... $ 154,764
150,000 5.750% 11/15/00................... 149,914
50,000 5.375% 02/15/01................... 49,812
175,000 5.000% 04/30/01................... 173,245
125,000 6.250% 04/30/01................... 124,681
50,000 5.625% 05/15/01................... 99,494
125,000 5.250% 05/31/01................... 123,919
80,000 5.500% 07/31/01................... 79,478
125,000 6.500% 08/31/01................... 125,041
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,080,348)............... 1,080,348
-----------
REPURCHASE AGREEMENTS -- 84.9%
1,666,056 Agreement with ABN AMRO Inc.,
6.510% dated 09/29/00 to be
repurchased at $1,666,960 on
10/02/00 collateralized by:
$1,479,246 U.S. Treasury Strips,
Interest Only, due 05/15/01 -
04/15/29; $220,132 U.S. Treasury
Strips, Principal Only, due
11/15/15 - 11/15/21............. 1,666,056
330,000 Agreement with Barclays Capital
Inc., 6.500% dated 09/29/00 to
be repurchased at $330,179 on
10/02/00 collateralized by:
$106,179 U.S. Treasury Strips,
Interest Only, due
02/15/01 - 08/15/27; $33,540
U.S. Treasury Strips, Principal
Only, due 05/15/01 - 11/15/27;
$91,688 U.S. Treasury Bonds,
7.625% - 13.125% due
05/15/01 - 11/15/22; $105,194
U.S. Treasury Notes, 3.875% -
6.125% due
03/31/01 - 01/15/09............. 330,000
330,000 Agreement with Bear, Stearns and
Company, Inc., 6.650% dated
09/29/00 to be repurchased at
$330,183 on 10/02/00
collateralized by: $343,224
GNMA, 6.000% - 8.500% due
02/15/29 - 09/15/30............. 330,000
50,000 Agreement with Credit Suisse First
Boston Corporation, 6.630% dated
09/29/00 to be repurchased at
$50,028 on 10/02/00
collateralized by: $51,488 GNMA,
9.000% - 9.500% due
03/15/23 - 12/15/26............. 50,000
50,000 Agreement with Credit Suisse First
Boston Corporation, 6.650% dated
09/29/00 to be repurchased at
$50,028 on 10/02/00
collateralized by: $40,541 GNMA,
6.500% - 13.000% due
12/15/10 - 01/15/30; $10,987
GNMA II, 6.500% due 09/20/29.... 50,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 80,000 Agreement with Deutsche Bank
Securities Inc., 6.450% dated
09/29/00 to be repurchased at
$80,043 on 10/02/00
collateralized by: $81,601 U.S.
Treasury Bonds, 6.000% - 14.250%
due 02/15/02 - 08/15/29......... $ 80,000
330,000 Agreement with First Union
Securities, Inc., 6.650% dated
09/29/00 to be repurchased at
$330,183 on 10/02/00
collateralized by: $336,590
GNMA, 5.500% - 12.000% due
10/15/00 - 09/20/30............. 330,000
330,000 Agreement with Goldman Sachs and
Company, 6.520% dated 09/27/00
to be repurchased at $330,359 on
10/03/00 collateralized by:
$336,600 GNMA, 5.500% - 10.000%
due 09/15/03 - 09/20/30......... 330,000
330,000 Agreement with J.P. Morgan
Securities Inc., 6.480% dated
09/29/00 to be repurchased at
$330,178 on 10/02/00
collateralized by: $175,621 U.S.
Treasury Strip, Principal Only,
due 05/15/02; $76,446 U.S.
Treasury Notes, 4.625% - 7.250%
due 10/31/00 - 10/15/06; $30,730
U.S. Treasury Bonds,
6.125% - 10.750% due
02/15/03 - 08/15/29; $53,803
U.S. Treasury Bills, discount
note due 10/19/00 - 05/31/01.... 330,000
280,000 Agreement with Lehman Brothers
Inc., 6.550% dated 09/29/00 to
be repurchased at $280,153 on
10/02/00 collateralized by:
$199,765 Various Bonds,
8.750% - 15.750% due
11/15/01 - 02/15/19; $85,741
U.S. Treasury Notes,
5.750% - 7.250% due
06/30/01 - 05/15/04............. 280,000
330,000 Agreement with Morgan Stanley Dean
Witter and Company, 6.470% dated
09/27/00 to be repurchased at
$330,356 on 10/03/00
collateralized by: $339,629 U.S.
Treasury Strip, Principal Only,
due 09/30/01.................... 330,000
330,000 Agreement with Salomon Smith
Barney Inc., 6.375% dated
09/29/00 to be repurchased at
$330,175 on 10/02/00
collateralized by: $174,011 U.S.
Treasury Strips, Interest Only,
due 08/15/01 - 05/15/27;
$163,066 U.S. Treasury Strips,
Principal Only, due
11/15/00 - 08/15/27............. 330,000
1,049,010 Agreement with Salomon Smith
Barney Inc., 6.650% dated
09/29/00 to be repurchased at
$1,049,591 on 10/02/00
collateralized by: $1,375,990
GNMA, 5.500% - 9.000% due
01/20/23 - 05/15/30............. 1,049,010
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS RESERVES MONEY MARKET FUNDS
Nations Treasury Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS -- (CONTINUED)
$ 330,000 Agreement with UBS Warburg, 6.520%
dated 09/29/00 to be repurchased
at $330,179 on 10/02/00
collateralized by: $336,601 U.S.
Treasury Note, 3.875% due
01/15/09........................ $ 330,000
130,000 Agreement with Westdeutsche
Landesbank, Girozentrale, 6.480%
dated 09/29/00 to be repurchased
at $130,070 on 10/02/00
collateralized by: $70,257 U.S.
Treasury Notes, 5.750% - 7.500%
due 10/31/02 - 02/15/05; $62,358
U.S. Treasury Bonds,
6.500% - 11.625% due
11/15/04 - 11/15/26............. 130,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,945,066)............... 5,945,066
-----------
TOTAL INVESTMENTS
(Cost $7,025,414*)....... 100.3% 7,025,414
-----------
OTHER ASSETS AND
LIABILITIES (NET)........ (0.3)%
Cash............................... $ 1
Receivable for investment
securities sold.................. 5,583,172
Receivable for Fund shares sold.... 269,707
Interest receivable................ 22,304
Payable for Fund shares redeemed... (488,607)
Investment advisory fee payable.... (1,013)
Administration fee payable......... (181)
Shareholder servicing and
distribution fees payable........ (2,024)
Distributions payable.............. (36,429)
Payable for investment securities
purchased........................ (5,365,258)
Accrued Trustees' fees and
expenses......................... (74)
Accrued expenses and other
liabilities...................... (469)
-----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)................ (18,871)
-----------
NET ASSETS................. 100.0% $ 7,006,543
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................. $ (144)
Paid-in capital.................... 7,006,687
-----------
NET ASSETS......................... $ 7,006,543
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($965,994,701 / 966,232,765 shares
outstanding)..................... $1.00
=====
TRUST CLASS SHARES:
($410,610,235 / 410,610,083 shares
outstanding)..................... $1.00
=====
LIQUIDITY CLASS SHARES:
($418,441,442 / 418,459,739 shares
outstanding)..................... $1.00
=====
ADVISER CLASS SHARES:
($1,529,633,484 / 1,530,151,916
shares outstanding).............. $1.00
=====
INVESTOR CLASS SHARES:
($1,112,421,390 / 1,112,628,018
shares outstanding).............. $1.00
=====
MARKET CLASS SHARES:
($1,358,931,638 / 1,359,000,010
shares outstanding).............. $1.00
=====
DAILY CLASS SHARES:
($941,023,353 / 941,129,148 shares
outstanding)..................... $1.00
=====
SERVICE CLASS SHARES:
($269,354,474 / 269,376,118 shares
outstanding)..................... $1.00
=====
INVESTOR B SHARES:
($132,611 / 132,611 shares
outstanding)..................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS RESERVES MONEY MARKET FUNDS
Nations Government Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 99.8%
FEDERAL FARM CREDIT BANK (FFCB) -- 1.0%
$ 20,000 6.350% 02/01/01.................... $ 19,987
----------
FEDERAL HOME LOAN BANK (FHLB) -- 97.6%
14,673 Discount note 10/02/00............. 14,670
125,000 6.445%(+) 10/02/00(++)............. 124,920
60,000 6.470%(+) 10/02/00(++)............. 59,983
100,000 6.480%(+) 10/02/00(++)............. 99,944
100,000 6.480%(+) 10/04/00................. 100,000
200,000 6.609%(+) 10/04/00................. 199,999
22,000 6.420% 10/05/00.................... 21,984
21,000 6.483%(+) 10/05/00(++)............. 20,998
25,000 5.705% 10/06/00.................... 24,999
51,270 Discount note 10/10/00............. 51,188
53,329 Discount note 10/13/00............. 53,215
150,000 6.421%(+) 10/16/00(++)............. 149,910
216,830 Discount note 10/18/00............. 216,173
180,000 6.441%(+) 10/23/00(++)............. 179,914
102,158 Discount note 10/25/00............. 101,719
90,000 6.431%(+) 10/26/00(++)............. 89,948
125,000 Discount note 12/13/00............. 123,382
50,000 6.380% 01/08/01.................... 49,123
25,000 Discount note 01/24/01............. 24,485
40,000 6.500% 03/15/01.................... 39,983
13,000 6.450% 03/16/01.................... 12,960
53,385 6.660% 04/06/01.................... 53,372
15,000 5.125% 04/17/01.................... 14,880
32,960 5.750% 04/30/01.................... 32,762
16,280 6.750% 05/04/01.................... 16,244
55,200 7.050% 05/10/01.................... 55,171
25,000 Discount note 05/25/01............. 23,902
25,000 7.125% 06/05/01.................... 25,012
----------
1,980,840
----------
STUDENT LOAN MARKETING ASSOCIATION
(SLMA) -- 1.2%
25,000 6.883%(+) 10/04/00................. 25,000
----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $2,025,827)................ 2,025,827
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
----------------------------------------------------------
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $2,025,827*)...... 99.8% $2,025,827
----------
OTHER ASSETS AND
LIABILITIES (NET)....... 0.2%
Receivable for investment
securities sold................. $ 126,183
Receivable for Fund shares sold... 120,723
Interest receivable............... 14,601
Payable for Fund shares
redeemed........................ (37,333)
Investment advisory fee payable... (460)
Administration fee payable........ (32)
Shareholder servicing and
distribution fees payable....... (497)
Distributions payable............. (9,722)
Payable for investment securities
purchased....................... (209,322)
Accrued Trustees' fees and
expenses........................ (32)
Accrued expenses and other
liabilities..................... (142)
----------
TOTAL OTHER ASSETS AND
LIABILITIES (NET)............... 3,967
----------
NET ASSETS................ 100.0% $2,029,794
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold................ $ (663)
Paid-in capital................... 2,030,457
----------
NET ASSETS........................ $2,029,794
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS RESERVES MONEY MARKET FUNDS
Nations Government Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
----------------------------------------------------------
<C> <S> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($349,909,244 / 350,058,606 shares
outstanding).................... $1.00
=====
TRUST CLASS SHARES:
($113,827,629 / 113,827,702 shares
outstanding).................... $1.00
=====
LIQUIDITY CLASS SHARES:
($414,173,242 / 414,172,586 shares
outstanding).................... $1.00
=====
ADVISER CLASS SHARES:
($396,705,706 / 397,019,864 shares
outstanding).................... $1.00
=====
INVESTOR CLASS SHARES:
($86,531,142 / 86,839,771 shares
outstanding).................... $1.00
=====
MARKET CLASS SHARES:
($466,000,131 / 466,000,010 shares
outstanding).................... $1.00
=====
DAILY CLASS SHARES:
($183,383,213 / 183,383,262 shares
outstanding).................... $1.00
=====
SERVICE CLASS SHARES:
($19,000,034 / 19,000,010 shares
outstanding).................... $1.00
=====
INVESTOR B SHARES:
($116,167 / 116,167 shares
outstanding).................... $1.00
=====
INVESTOR C SHARES:
($147,721 / 147,722 shares
outstanding).................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
(+) Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
(++) Reset date. Interest rates reset either daily, weekly or monthly.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 101.1%
ALABAMA -- 0.8%
$ 9,250 Birmingham, Alabama Private
Educational Building Authority
Revenue, (The Altamont School
Project) Series 1998, (AmSouth Bank
of Alabama LOC), 5.600%
04/01/13**......................... $ 9,250
575 Foley, Alabama Industrial Development
Board IDR, (Vulcan Inc. Project)
Series 1985, (AmSouth Bank of
Alabama LOC),
5.700% 12/01/00**#................. 575
1,090 Phenix County, Alabama Industrial
Development Board Environmental
Improvement Revenue, (Mead Coated
Board, Inc. Project) Series 1993A,
AMT, (Toronto Dominion Bank LOC),
5.550% 06/01/28**.................. 1,090
----------
10,915
----------
ALASKA -- 1.0%
4,300 Alaska Industrial Development and
Export Authority Exempt Facilities
Revenue, (AMAX Gold, Inc. Project)
Series 1997, AMT, (Bank of Nova
Scotia LOC), 5.650% 05/01/09**..... 4,300
9,995 Alaska State Housing Finance
Corporation Housing Revenue, Series
1998PA-332, (MBIA Insured, Merrill
Lynch SBPA),
5.620% 12/01/19**#................. 9,995
----------
14,295
----------
ARIZONA -- 1.1%
14,700 Apache County, Arizona Industrial
Development Authority Revenue,
(Tucson Electric Power Company
Project) Series 1983A, (Toronto
Dominion Bank LOC),
5.600% 12/15/18**.................. 14,700
1,000 Pinal County, Arizona Industrial
Development Authority PCR
Refunding, (Magna Copper Company
Project) Series 1992, (Banque
Nationale de Paris LOC),
5.600% 12/01/11**.................. 1,000
----------
15,700
----------
ARKANSAS -- 0.1%
1,200 Arkansas State Development Finance
Authority Higher Education Capital
Asset Revenue, Series 1985, (FGIC
Insured, Citibank SBPA),
5.500% 12/01/15**.................. 1,200
----------
CALIFORNIA -- 2.3%
10,000 California Higher Education Loan
Authority Inc. Student Loan Revenue
Refunding, Sr. Lien, Series
1992A-2-6, (SLMA Guarantee)
Mandatory Put 4/01/01,
4.300% 12/01/02.................... 10,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$20,000 California Higher Education Loan
Authority Inc. Student Loan
Revenue, Series 1987, (SLMA
Guarantee), Mandatory Put 07/01/01,
4.400% 07/01/01.................... $ 20,000
1,000 Los Angeles, California Regional
Airports Improvement Corporation
Lease Revenue, (American Airlines,
Inc. Project) Series 1984D,
(Wachovia Bank of Georgia, N.A.
LOC),
5.500% 12/01/24**.................. 1,000
1,400 Los Angeles, California Regional
Airports Improvement Corporation,
Corporate Lease Revenue, (American
Airlines Inc. Project) Series
1984G, (Wachovia Bank of Georgia,
N.A. LOC),
5.500% 12/01/24**.................. 1,400
----------
32,400
----------
COLORADO -- 1.3%
1,105 Colorado Health Facilities Authority
Revenue, (Goodwill Industries, Inc.
Project) Series 1994, (Bank One of
Colorado, N.A. LOC),
5.600% 12/01/04**#................. 1,105
5,270 Colorado Housing Finance Authority
Revenue Refunding, (Coventry
Village Project) Series 1996B,
(FNMA Collateral Agreement),
5.550% 10/15/16**.................. 5,270
2,710 Colorado Post-Secondary Educational
Facilities Authority Economic
Development Revenue, (U.S.
Swimming, Inc. Project) Series
1996, (Wells Fargo Bank, MN),
5.600% 06/01/11**#................. 2,710
910 Larimer County, Colorado Industrial
Development Revenue Refunding,
(Ultimate Support Systems Project)
Series 1995A, (Bank One of
Colorado, N.A. LOC),
5.600% 06/01/10**#................. 910
8,300 Moffat County, Colorado PCR,
(Tri-State Colorado - Utah Electric
Cooperative Project) Series 1984,
(AMBAC Insured, Societe Generale
SBPA),
5.550% 07/01/10**.................. 8,300
700 Pitkin County, Colorado Industrial
Development Authority Revenue
Refunding, (Aspen Skiing Project)
Series 1994A, (First National Bank
of Chicago LOC),
5.600% 04/01/16**#................. 700
----------
18,995
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
DELAWARE -- 4.8%
$15,000 Delaware State Economic Development
Authority IDR, (Clean Power
Project) Series 1997D, AMT, (Motiva
Enterprises LLC Guarantee),
5.850% 08/01/29**.................. $ 15,000
10,000 Delaware State Economic Development
Authority IDR, (Star Enterprise
Project) Series 1997B, AMT, (Motiva
Enterprises LLC Guarantee),
5.750% 08/01/29**.................. 10,000
43,050 Delaware State Economic Development
Authority Revenue, (Hospital
Billing and Collection Services,
Inc. Project) Series 1985A, (AMBAC
Insured, Morgan Stanley SBPA),
5.650% 12/01/15.................... 43,050
----------
68,050
----------
DISTRICT OF COLUMBIA -- 0.1%
800 District of Columbia GO, Series
1992A-3, (Societe Generale LOC),
5.600% 10/01/07**.................. 800
1,000 District of Columbia GO, Series
1992A-5, (Bank of Nova Scotia LOC),
5.600% 10/01/07**.................. 1,000
----------
1,800
----------
FLORIDA -- 2.7%
10,200 Collier County, Florida Industrial
Development Authority Health Care
Facilities Revenue, (Community
Health Care Project) Series 1999A,
(First Union National Bank LOC),
5.500% 11/01/19**.................. 10,200
7,045 Florida State Board of Education
Capital Outlay Revenue Refunding,
(Public Education Project) Series
1998B,
4.500% 06/01/01.................... 7,049
1,760 Fort Walton Beach, Florida IDR,
(Burton Golf, Inc. Project) Series
1996, AMT, (Columbus Bank and Trust
LOC),
5.800% 10/01/11**.................. 1,760
3,000 Palm Beach County, Florida Economic
Development Revenue, (YMCA Boynton
Beach Project) Series 1999,
(SunTrust Bank of South Florida
LOC),
5.600% 01/01/24**#................. 3,000
8,160 Palm Beach County, Florida
Multi-Family Housing Finance
Authority, Revenue, (Clear Lake
Colony Apartments Project) Series
2000PA-1240, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
5.770% 09/15/02**#(--)............. 8,160
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
FLORIDA -- (CONTINUED)
$ 9,000 Polk County, Florida Industrial
Development Authority Revenue,
(Farmland Hydro, LP Project) Series
1998, AMT, (Rabobank Nederland
LOC),
5.600% 02/01/29**.................. $ 9,000
----------
39,169
----------
GEORGIA -- 6.1%
3,945 Clayton County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Ten Oaks
Apartments Project) Series 1990F,
(FSA Insured, Societe Generale
SBPA),
5.500% 01/01/21**.................. 3,945
1,900 Cobb County, Georgia Development
Authority Revenue Refunding,
(Highlands Park Associates Project)
Series 1998, (SunTrust Bank LOC),
5.600% 08/01/08**#................. 1,900
1,800 Cobb County, Georgia Residential Care
Facilities for the Elderly
Authority Revenue Refunding,
(Presbyterian Village Austell
Project) Series 1998, (SunTrust
Bank LOC),
5.600% 08/01/15**#................. 1,800
12,100 Columbia County, Georgia Residential
Care Facilities for the Elderly
Authority Revenue, (Augusta
Residential Center on Aging
Project) Series 1994, (SunTrust
Bank LOC),
5.600% 01/01/21**#................. 12,100
7,500 DeKalb County, Georgia Development
Authority IDR, (The Paideia School
Inc. Project) Series 2000,
(SunTrust Bank LOC),
5.600% 02/01/20**#................. 7,500
3,000 DeKalb County, Georgia Development
Authority Revenue, (Marist School,
Inc. Project) Series 1999, (SunTrust
Bank LOC),
5.600% 03/01/24**#................. 3,000
1,050 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue Refunding, (Camden Brook
Project) Series 1995, (FNMA
Collateral Agreement),
5.650% 06/15/25**.................. 1,050
1,400 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue, (Cedar Creek Apartments
Project) Series 1995, AMT, (GE
Capital Corporation Guarantee),
5.600% 12/01/20**#................. 1,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
GEORGIA -- (CONTINUED)
$ 4,800 DeKalb County, Georgia Housing
Authority Multi-Family Housing
Revenue, (Crow Wood Arbor
Associates, Ltd. Project) Series
1985, (Wachovia Bank of North
Carolina, N.A. LOC),
5.600% 12/01/07**#................. $ 4,800
3,300 Fulton County, Georgia Development
Authority Revenue, (Georgia Tech
Athletic Association, Inc. Project)
Series 1995, (SunTrust Bank LOC),
5.600% 07/01/14**#................. 3,300
3,000 Fulton County, Georgia Development
Authority Revenue, (Lovett School
Project) Series 1997, (SunTrust
Bank LOC),
5.600% 04/01/17**#................. 3,000
15,000 Gainesville, Georgia Redevelopment
Authority Educational Facilities
Revenue, (Riverside Military
Project) Series 1999, (Wachovia
Bank N.A. LOC),
5.600% 07/01/24**#................. 15,000
4,200 Monroe County, Georgia Development
Authority, PCR, (Georgia Power
Company Scherer Project) Series
1995,
5.600% 07/01/25**.................. 4,200
1,150 Municipal Electric Authority of
Georgia Subordinated Revenue,
(Georgia MEAG Project Number One)
Series 1994D, (ABN-AMRO Bank N.V.
LOC),
5.600% 01/01/22**.................. 1,150
5,800 Richmond County, Georgia Development
Authority Solid Waste Disposal
Revenue, (Evergreen Nylon Project)
Series 1999, AMT, (Banque Nationale
de Paris LOC),
5.600% 07/01/32**.................. 5,800
9,600 Richmond County, Georgia Hospital
Authority Revenue Anticipation
Certificates, (University Health
Services, Inc. Project) Series
1999, (SunTrust Bank LOC),
5.600% 01/01/19**.................. 9,600
7,000 Smyrna, Georgia Housing Authority
Multi-Family Housing Revenue,
(Hills of Post Village Series
Project) Series 1995, (FNMA
Collateral Agreement),
5.600% 06/01/25**#................. 7,000
----------
86,545
----------
ILLINOIS -- 12.9%
1,135 Chicago, Illinois IDR, (Guernsey Bel
Inc. Project) Series 1996A, AMT,
(LaSalle National Bank LOC),
5.670% 12/01/16**.................. 1,135
4,000 Chicago, Illinois O'Hare
International Airport Authority
Industrial Revenue, (American
Airlines, Inc. Project) Series
1983D, (Royal Bank of Canada LOC),
5.600% 12/01/17**.................. 4,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$ 4,255 Elmhurst, Illinois Hospital Revenue,
(Joint Commission Accredidation
Healthcare Project) Series 1988,
(Dexia Credit Local de France LOC),
5.600% 07/01/18**.................. $ 4,255
870 Illinois Development Finance
Authority IDR, (Randolph Pickle
Corporation Project) Series 1992,
AMT, (American National Bank &
Trust Company LOC),
5.750% 06/01/12**.................. 870
2,800 Illinois Development Finance
Authority IDR, (Unique Building
Corporation Project) Series 1989,
AMT, (American National Bank &
Trust Company LOC),
5.750% 05/01/19**.................. 2,800
46,300 Illinois Development Finance
Authority Revenue, (Lyric Opera of
Chicago Project) Series 1994,
(Northern Trust Company LOC, Bank
One of Michigan LOC, Harris Trust &
Savings Bank LOC),
5.500% 12/01/28**.................. 46,300
1,900 Illinois Development Finance
Authority Revenue, (Park Ridge
Youth Campus Project) Series 1998,
(Northern Trust Company LOC),
5.550% 09/01/18**#................. 1,900
12,200 Illinois Development Finance
Authority Revenue, (YMCA of
Metropolitan Chicago Project)
Series 1996A, (Harris Trust &
Savings Bank LOC),
5.500% 06/01/26**.................. 12,200
5,600 Illinois Educational Facilities
Authority Revenue, (Chicago
Historical Society Project) Series
1985, (Northern Trust Company LOC),
5.500% 12/01/25**.................. 5,600
4,000 Illinois Educational Facilities
Authority Revenue, (DePaul
University Project) Series
1992CP-1, (Northern Trust LOC),
5.500% 04/01/26**.................. 4,000
12,800 Illinois Educational Facilities
Authority Revenue, (John F. Kennedy
Healthcare Foundation Project)
Series 1995, (LaSalle National Bank
LOC), Mandatory Put 01/25/01,
4.350% 01/25/01.................... 12,800
1,400 Illinois Educational Facilities
Authority Revenue, (Northwestern
University Project) Series 1985,
(First National Bank of Chicago
SBPA),
5.550% 12/01/25**.................. 1,400
5,000 Illinois Educational Facilities
Authority Revenue, (University of
Chicago Project) Series 2000,
4.750% 01/26/01.................... 5,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- (CONTINUED)
$15,485 Illinois Educational Facilities
Authority Revenue, (University
Pooled Financing Program) Series
1985, (FGIC Insured, First National
Bank of Chicago SBPA),
5.500% 12/01/05**.................. $ 15,485
10,000 Illinois Health Facilities Authority
Revenue, (Evanston Northwestern
Healthcare Corporation Project)
Series 1985B,
4.450% 08/15/01**#................. 10,000
23,000 Illinois Health Facilities Authority
Revenue, (Evanston Northwestern
Healthcare Corporation Project)
Series 1988,
4.200% 11/15/00**#................. 23,000
10,000 Illinois Health Facilities Authority
Revenue, (Evanston Northwestern
Healthcare Corporation Project)
Series 1990A,
4.450% 07/31/01**#................. 10,000
8,000 Illinois Health Facilities Authority
Revenue, (Revolving Fund Pooled
Project) Series 1985C, (First
National Bank of Chicago LOC),
5.500% 08/01/15**.................. 8,000
1,500 Lombard Village, Illinois Industrial
Projects Revenue Refunding, (B&H
Partnership Project) Series 1995,
(LaSalle Bank N.A.),
5.850% 10/01/13**.................. 1,500
3,900 Madison County, Illinois
Environmental Improvement Revenue,
(Shell Oil Company Project) Series
1997A, AMT,
5.700% 03/01/33**.................. 3,900
9,200 Orland Park, Illinois Industrial
Development Revenue, (Panduit
Corporation Project) Series 1996,
AMT, (Wachovia Bank of Georgia
LOC),
5.650% 04/01/31**#................. 9,200
----------
183,345
----------
INDIANA -- 0.9%
2,400 Indiana Health Facilities Financing
Authority Hospital Revenue,
(Deaconess Hospital Inc. Project)
Series 1992, (First National Bank
of Chicago LOC),
5.450% 01/01/22**.................. 2,400
1,725 Indiana Health Facilities Financing
Authority Revenue Refunding,
(Cardinal Center, Inc. Project)
Series 1996A, (Key Bank N.A. LOC),
5.600% 12/01/16**#................. 1,725
2,700 Indianapolis, Indiana Economic
Development Revenue, (Edgcomb
Metals Company Project) Series
1983, (Wells Fargo Bank LOC),
5.500% 12/01/08**.................. 2,700
2,900 Rockport, Indiana PCR, (Indiana and
Michigan Electric Company Project)
Series 1985A, (UBS AG LOC),
5.550% 08/01/14**#................. 2,900
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INDIANA -- (CONTINUED)
$ 3,100 Whiting, Indiana Sewer and Solid
Waste Disposal Revenue, (Amoco Oil
Company Project) Series 1996, AMT,
(BP Amoco plc Guarantee),
5.700% 01/01/26**.................. $ 3,100
----------
12,825
----------
IOWA -- 0.3%
4,700 Iowa Higher Education Loan Authority
Revenue, Series 1985, (MBIA
Insured, Chase Manhattan SBPA),
5.700% 12/01/15**.................. 4,700
----------
KENTUCKY -- 0.7%
1,024 Jefferson County, Kentucky IDR,
(Belknap, Inc. Project) Series
1984, (National City Bank, Kentucky
LOC),
4.400% 12/01/14**#................. 1,024
1,265 Jefferson County, Kentucky Industrial
Building Revenue, (Seven Counties
Services, Inc. Project) Series
1996, (Bank One of Kentucky, N.A.
LOC),
5.600% 06/01/11**#................. 1,265
900 Jeffersontown, Kentucky Industrial
Building Revenue, (Raque Food
Systems, Inc. Project) Series 1995,
AMT, (PNC Bank, N.A. LOC),
5.600% 04/01/20**#................. 900
2,600 Lexington-Fayette County, Kentucky
Urban County Airport Corporation
Revenue, (First Mortgage Project)
Series 1994A, AMT, (Dexia Credit
Local de France LOC),
5.700% 04/01/24**.................. 2,600
4,015 Louisville and Jefferson County,
Kentucky Convention Center GO,
Series 1996PT-69, (FSA Insured,
Merrill Lynch SBPA),
5.620% 07/01/24**##................ 4,015
----------
9,804
----------
LOUISIANA -- 2.2%
10,000 Ascension Parish, Louisiana PCR
Refunding, (Borden, Inc. Project)
Series 1992, (Credit Suisse First
Boston LOC),
5.550% 12/01/09**.................. 10,000
2,900 Calcasieu Parish Inc., Louisiana
Industrial Development Board
Environmental Revenue, (Citgo
Petroleum Corporation Project)
Series 1994, AMT, (Banque Nationale
de Paris LOC),
5.750% 12/01/24**.................. 2,900
2,000 Calcasieu Parish Inc., Louisiana
Industrial Development Board
Environmental Revenue, (Citgo
Petroleum Corporation Project)
Series 1996, AMT, (Westdeutsche
Landesbank Girozentrale LOC ),
5.750% 07/01/26**.................. 2,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
LOUISIANA -- (CONTINUED)
$ 5,400 Lake Charles, Louisiana Harbor and
Terminal District Revenue, (Citgo
Petroleum Corporation Project)
Series 1984, (Westdeutsche
Landesbank Girozentrale LOC),
5.650% 08/01/07**.................. $ 5,400
6,000 Louisiana State Public Facilities
Authority Hospital Revenue,
(Willis-Knighton Medical Center
Project) Series 1997, (AMBAC
Insured, Dexia Credit Local de
France SBPA),
5.400% 09/01/27**.................. 6,000
5,000 Plaquemines, Louisiana Port Harbor
and Terminal District Port
Facilities Revenue, (International
Marine Terminals Project) Series
1984A, (KBC Bank N.V. LOC),
Mandatory Put 3/15/01,
4.200% 03/15/01.................... 5,000
----------
31,300
----------
MARYLAND -- 2.2%
3,000 Baltimore County, Maryland Economic
Development Revenue, (Notre Dame
Preparatory School Project) Series
1998, (Crestar Bank LOC),
5.600% 06/01/24**#................. 3,000
27,800 Baltimore, Maryland Industrial
Development Authority IDR,
(Baltimore Capital Acquisition
Project) Series 1986, (Bayerische
Landesbank LOC),
5.550% 08/01/16**.................. 27,800
----------
30,800
----------
MICHIGAN -- 0.2%
3,500 Michigan State Housing Development
Authority Housing Revenue, (Shoal
Creek Project) Series 1985,
(Wachovia Bank, N.A. LOC),
5.500% 10/01/07**.................. 3,500
----------
MINNESOTA -- 0.7%
6,160 Minneapolis, Minnesota Housing
Development Revenue Refunding,
(Symphony Place Project) Series
1988, (FHLMC Guarantee),
5.400% 12/01/14**.................. 6,160
4,500 Minnesota State Housing Finance
Agency, (Single-Family Mortgage
Project) Series 2000D, (Bayerische
Landesbank, GIC),
4.300% 05/01/01.................... 4,500
----------
10,660
----------
MISSOURI -- 6.1%
35,900 Missouri State Development Finance
Board Lease Revenue, (Missouri
Association of Utilities Lease Pool
Project) Series 1999, (TransAmerica
Life and Annuity Guarantee),
5.650% 12/01/22**.................. 35,900
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
MISSOURI -- (CONTINUED)
$ 1,600 Missouri State Health and Educational
Facilities Authority Facilities
Revenue, (Washington University
Project) Series 1985B, (Morgan
Guaranty Trust SBPA),
5.600% 09/01/10**.................. $ 1,600
6,300 Missouri State Health and Educational
Facilities Authority Health
Facilities Revenue Refunding,
(Sisters of Mercy Health Care
System Project) Series 1992B,
(ABN-AMRO N.V. Chicago SBPA, West
Landesbank SBPA, Dexia Credit Local
de France SBPA),
5.600% 06/01/14**.................. 6,300
5,000 Missouri State Health and Educational
Facilities Authority Revenue,
(Mehlville School District Advanced
Funding Project) Series 2000I,
5.000% 10/01/01.................... 5,030
30,400 Missouri State Health and Educational
Facilities Authority Revenue,
(Stowers Institute of Medical
Research Project) Series 1998A,
(Morgan Guaranty Trust LOC),
5.650% 04/01/38**.................. 30,400
4,525 Missouri State Health and Educational
Facilities Authority School
District Revenue, (Grandview
Consolidated School District
Advanced Funding Project) Series
2000D,
5.000% 10/01/01.................... 4,552
3,070 St. Charles County, Missouri
Industrial Development Authority
IDR, (A.H. Land Development Company
Project) Series 1996, AMT,
(Commerce Bank, N.A. LOC),
5.770% 06/01/11**.................. 3,070
----------
86,852
----------
NEBRASKA -- 0.7%
9,695 Nebraska Help Inc. Student Loan
Revenue, Series 1986B, AMT, (SLMA
Guarantee),
5.550% 12/01/16**.................. 9,695
----------
NEVADA -- 1.2%
5,850 Clark County, Nevada IDR, (Nevada
Cogeneration Association I Project)
Series 1991, AMT, (Canadian
Imperial Bank of Commerce LOC),
5.650% 11/01/21**.................. 5,850
5,650 Clark County, Nevada IDR, (Nevada
Cogeneration Association II
Project) Series 1990, AMT,
(Canadian Imperial Bank of Commerce
LOC),
5.650% 11/01/20**.................. 5,650
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
NEVADA -- (CONTINUED)
$ 5,500 Nevada Housing Division Multi-Unit
Housing Revenue, Series 1999A, AMT,
(US Bank N.A. LOC),
5.650% 10/01/30**.................. $ 5,500
----------
17,000
----------
NEW MEXICO -- 0.4%
5,900 Dona Ana County, New Mexico IDR,
(Foamex Products, Inc. Project)
Series 1985, (Bank of Nova Scotia
LOC),
5.600% 11/01/13**#................. 5,900
----------
NEW YORK -- 3.2%
7,000 Nassau County, New York Revenue
Anticipation Notes, Series 2000C,
(First Union National Bank LOC,
Bank of Nova Scotia LOC),
6.000% 04/12/01.................... 7,054
38,990 New York State Dormitory Authority
Revenue, Series 1998PT-1066, (AMBAC
Insured, Merrill Lynch SBPA),
4.550% 07/01/23**#(--)............. 38,990
----------
46,044
----------
NORTH CAROLINA -- 6.5%
5,000 Forsyth County, North Carolina
Certificates of Participation
Revenue, (Public Facilities and
Equipment Project) Series 2000,
(Wachovia Bank N.A. SBPA),
5.450% 10/01/20**#................. 5,000
12,700 North Carolina Educational Facilities
Finance Agency Revenue,
(Ravenscroft School Project) Series
2000, (Wachovia Bank, N.A. LOC),
5.600% 08/01/20**.................. 12,700
10,000 North Carolina Educational Facilities
Finance Agency Revenue, (Roman
Catholic Diocese Project) Series
2000, (Wachovia Bank, N.A. LOC),
5.600% 06/01/17**.................. 10,000
13,750 North Carolina Educational Facilities
Financing Agency Revenue, (Forsyth
Country School Project) Series
2000, (Wachovia Bank, N.A. LOC),
5.600% 12/01/25**.................. 13,750
14,200 North Carolina Educational Facilities
Financing Agency Revenue,
(Methodist College Project) Series
2000, (Wachovia Bank, N.A. LOC),
5.600% 03/01/22**.................. 14,200
8,800 North Carolina Educational Facilities
Financing Agency Revenue, (Wake
Forest University Project) Series
2000, (Branch Banking and Trust
Company SBPA),
5.450% 01/01/18**.................. 8,800
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
NORTH CAROLINA -- (CONTINUED)
$10,000 North Carolina Medical Care
Commission Retirement Community
Revenue, (Adult Communities
Project) Series 1996, (LaSalle
National Bank LOC),
5.500% 11/15/09**.................. $ 10,000
9,800 North Carolina Medical Care Community
Health Care Facilities Revenue,
(Randolph Hospital Inc. Project),
Series 1999, (Wachovia Bank, N.A.
LOC),
5.600% 03/01/24**#................. 9,800
500 North Carolina Medical Care Community
Hospital Revenue, (Moses H. Cone
Memorial Hospital Project) Series
1995, (Wachovia Bank, N.A. SBPA),
5.500% 09/01/02**.................. 500
8,500 Robeson County, North Carolina
Industrial Facilities and PCR
Financing Authority Revenue, (Culp
Inc. Project) Series 1997, AMT,
(Wachovia Bank of North Carolina,
N.A. LOC),
5.650% 06/01/14**#................. 8,500
----------
93,250
----------
NORTH DAKOTA -- 0.9%
12,600 Grand Forks, North Dakota Health Care
Facilities Revenue, (The United
Hospital Obligated Group Project)
Series 1996A, (LaSalle National
Bank LOC),
5.500% 12/01/25**#................. 12,600
----------
OHIO -- 2.1%
920 Centerville, Ohio Health Care
Revenue, (Bethany Lutheran Village
Hospital Project) Series 1994, (PNC
Bank of Ohio, N.A. LOC),
5.500% 11/01/13**#................. 920
5,000 Clinton County, Ohio Airport
Facilities Revenue Refunding,
(Wilmington Air Park, Inc. Project)
Series 1991, (Wachovia Bank of
North Carolina, N.A. LOC),
5.600% 06/01/11**#................. 5,000
855 Cuyahoga County, Ohio IDR Refunding,
(Pleasant Lakes Associates Project)
Series 1995, (Key Bank, N.A. LOC),
5.600% 05/01/11**#................. 855
850 Greene County, Ohio IDR, (FC,
Ltd. - AFC Stamping Project) Series
1995, AMT, (Key Bank, N.A. LOC),
5.700% 09/01/16**#................. 850
9,400 Lucas County, Ohio Facilities
Improvement Revenue, (Toledo
Zoological Society Project) Series
1997, (Key Bank, N.A. LOC),
5.500% 10/01/05**#................. 9,400
1,780 Lucas County, Ohio IDR, (Dynamic
Dies, Inc. Project) Series 1997,
AMT, (National City Bank LOC),
5.600% 07/01/09**.................. 1,780
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
OHIO -- (CONTINUED)
$ 2,279 Ohio Housing Finance Agency
Multi-Family Housing Revenue,
(Kenwood Congregation - Retirement
Project) Series 1985, (Morgan
Guaranty Trust LOC),
4.250% 12/01/15**.................. $ 2,279
5,000 Ohio State Air Quality Development
Authority Revenue Refunding, (Ohio
Edison Project) Series 1988A,
(Toronto Dominion Bank LOC),
Mandatory Put 02/01/01,
4.100% 02/01/15.................... 4,998
2,000 Ohio State Water Development
Authority Solid Waste Disposal
Revenue, (The Timken Company
Project) Series 1997, AMT,
(Wachovia Bank of North Carolina,
N.A. LOC),
5.750% 07/01/32**.................. 2,000
1,050 Summit County, Ohio IDR, (Oliver
Printing Company, Inc. Project)
Series 1997, AMT, (Bank One of
Akron, N.A. LOC), 5.750%
02/01/07**#........................ 1,050
1,035 Toledo-Lucas County, Ohio Port
Authority Facilities Improvement
Revenue, (YMCA of Greater Toledo
Project) Series 1996, (Fifth Third
Bank of Northwestern Ohio LOC),
5.350% 12/01/21**#................. 1,035
----------
30,167
----------
OKLAHOMA -- 1.5%
21,910 Payne County, Oklahoma Economic
Development Authority Revenue,
(Collegiate Housing Foundation
Project) Series 2000A, (First Union
National Bank LOC),
5.600% 06/01/30**.................. 21,910
----------
PENNSYLVANIA -- 3.4%
2,790 Elk County, Pennsylvania Industrial
Development Authority Revenue,
(Clarion Sintered Metals Project)
Series 1998, AMT, (PNC Bank, N.A.
LOC),
5.600% 03/01/09**#................. 2,790
9,200 Emmaus, Pennsylvania General
Authority Revenue, (East
Stroudsburg Pennsylvania Area
School District Project) Series
1989B, (Bayerische Landesbank LOC),
5.650% 03/01/24**.................. 9,200
6,270 Hatfield Township, Pennsylvania
Industrial Development Authority
Revenue, (H&N Packaging Project)
Series 1999A, AMT, (Commerzbank
LOC),
5.600% 04/01/19**#................. 6,270
2,590 Pennsylvania Energy Development
Authority Revenue, (B&W Ebensburg
Project) Series 1986, AMT,
(Landesbank Hessen-Thueringen
Girozentrale LOC),
5.500% 12/01/11**.................. 2,590
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
PENNSYLVANIA -- (CONTINUED)
$ 5,000 Pennsylvania State GO, Series 1994,
4.750% 05/01/01.................... $ 5,011
3,600 Philadelphia, Pennsylvania
Redevelopment Authority Revenue,
(Southwark Plaza, LP Project)
Series 1997A, (PNC Bank, N.A. LOC),
5.500% 12/01/03**.................. 3,600
14,200 Quakertown, Pennsylvania General
Authority Revenue, (Pooled
Financing Program) Series 1996A,
(PNC Bank, N.A. LOC),
5.550% 07/01/26**.................. 14,200
2,300 Schuylkill County, Pennsylvania
Industrial Development Authority
Resource Recovery Revenue
Refunding, (Northeastern Power
Company Project) Series 1997B, AMT,
(Dexia Credit Local de France LOC),
5.650% 12/01/22**.................. 2,300
1,760 Schuylkill County, Pennsylvania
Industrial Development Authority
Revenue, (Bon-Ton Stores Project)
Series 1992, AMT, (PNC Bank, N.A.
LOC),
5.600% 02/01/12**#................. 1,760
1,315 Schuylkill County, Pennsylvania
Industrial Development Authority
Revenue, (S. Grumbacher and Son
Project) Series 1990, (PNC Bank,
N.A. LOC),
5.500% 02/01/12**#................. 1,315
----------
49,036
----------
SOUTH CAROLINA -- 7.0%
4,000 Anderson County, South Carolina IDR,
(Mikron Corporation Project) Series
1998, AMT, (UBS AG LOC),
5.750% 11/01/12**#................. 4,000
6,000 Berkeley County, South Carolina
Exempt Facilities Industrial
Revenue, (Amoco Chemical
Corporation Project) Series 1997,
AMT, (BP Amoco plc Guarantee),
5.700% 04/01/27**.................. 6,000
9,000 Charleston County, South Carolina
School District, Series 2000,
4.600% 04/13/01.................... 9,014
1,000 Cherokee County, South Carolina
Industrial Revenue Refunding,
(Holmberg Electronic Corporation
Project) Series 1989, (Wachovia
Bank of North Carolina, N.A. LOC),
5.950% 11/01/04**#................. 1,000
15,000 Florence County, South Carolina
Hospital Revenue, (McLeod Regional
Medical Center) Series 1985A, (FGIC
Insured, First Union National Bank
SBPA),
5.450% 11/01/15**.................. 15,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
SOUTH CAROLINA -- (CONTINUED)
$ 5,000 Greenville County, South Carolina
Industrial Revenue, (Edgcomb Metals
Company Project) Series 1984,
(Wells Fargo Bank LOC),
5.600% 08/01/09**#................. $ 5,000
20,000 Richland County, South Carolina
School District Number 001 GO BAN,
(South Carolina School District
Enhancement Program), Series 2000,
4.750% 09/14/01.................... 20,082
1,500 South Carolina Jobs Economic
Development Authority Development
Revenue, (Spartanburg YMCA Project)
Series 1996, (First Union National
Bank LOC),
5.550% 06/01/18**#................. 1,500
3,100 South Carolina Jobs Economic
Development Authority Health
Facilities Revenue, (Greenville
Baptist Retirement Community
Project) Series 1997, (Wachovia
Bank of North Carolina, N.A. LOC),
5.600% 10/01/19**#................. 3,100
3,200 South Carolina Jobs Economic
Development Authority IDR, (Banks
Construction Company Project)
Series 1999, AMT, (Wachovia Bank
N.A. LOC),
5.700% 05/01/09**#................. 3,200
700 South Carolina Jobs Economic
Development Authority IDR,
(Chambers Oakridge Landfill
Project) Series 1990, AMT, (Morgan
Guaranty Trust LOC),
5.600% 12/01/01**#................. 700
30,000 South Carolina Jobs Economic
Development Authority Revenue, (St.
Francis Hospital-Bon Secours
Project) Series 1999PT-328,
(Merrill Lynch Guarantee, Merrill
Lynch SBPA),
5.770% 01/01/01**##(--)............ 30,000
----------
98,596
----------
SOUTH DAKOTA -- 0.0%(!)
530 South Dakota Economic Development
Financing Authority IDR Refunding,
(Lomar Development Company Project)
Series 1996B, AMT, (US Bank, N.A.
LOC),
6.000% 08/01/08**#................. 530
----------
TENNESSEE -- 3.7%
8,500 Bristol, Tennessee Health and
Education Facilities Revenue,
Series 1995A, (FGIC Insured,
Citibank SBPA),
5.650% 02/28/14**##(--)............ 8,500
2,000 Dickson County, Tennessee Industrial
Development Board Revenue, (The
Jackson Foundation-Renaissance
Learning Center Project) Series
1997, (SunTrust Bank of Nashville
LOC),
5.600% 11/01/12**#................. 2,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
TENNESSEE -- (CONTINUED)
$ 6,260 Franklin County, Tennessee Health and
Educational Facilities Board
Revenue, (University of the South
Project) Series 1998B, (AmSouth
Bank of Alabama LOC),
5.550% 09/01/18**.................. $ 6,260
7,420 Memphis, Tennessee Center City
Revenue Finance Corporation
Multi-Family Housing Revenue,
(Riverset Apartments Project)
Series 1998PT-1019, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
5.820% 10/01/19**##(--)............ 7,420
9,110 Metropolitan Government Nashville and
Davidson County, Tennessee Health
and Education Facilities Board
Revenue, (Adventist/Sunbelt
Retirement Project) Series 1996A,
(SunTrust Bank Central Florida
LOC),
5.470% 11/15/26**.................. 9,110
3,700 Monroe County, Tennessee Industrial
Development Board IDR, (American
Transit Corporation Project) Series
1986, (BankBoston LOC),
5.600% 08/01/06**#................. 3,700
1,500 Springfield, Tennessee Industrial
Development Board Revenue, (All
American Homes of Tennessee
Project) Series 1994, AMT, (Bank
One of Michigan, N.A. LOC),
5.750% 11/01/09**#................. 1,500
14,400 Tennessee Volunteer State Student
Funding Corporation Student Loan
Revenue, Series 1998A-2, AMT,
(State Street Bank and Trust LOC),
5.500% 12/01/23**.................. 14,400
----------
52,890
----------
TEXAS -- 14.5%
11,500 Brazos River Authority, Texas PCR
Refunding, (Texas Utilities
Electric Company Project) Series
1999C, AMT, (Bank of New York LOC),
5.600% 03/01/32**.................. 11,500
16,180 Dallas-Fort Worth, Texas
International Airport Facility
Revenue, (Airport Facilities
Flightsafety Project) Series 1999,
AMT, (OBH, Inc. Guarantee),
5.700% 07/01/32**#................. 16,180
6,700 Grand Prairie, Texas Housing Finance
Multi-Family Housing Revenue,
Series 1993, (GE Credit Corporation
Guarantee),
5.450% 06/01/10**.................. 6,700
2,300 Grapevine, Texas Industrial
Development Corporation Airport
Revenue, (Southern Air
Transportation Project) Series
1993, (Bank One Texas N.A. LOC),
5.450% 03/01/10**.................. 2,300
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 1,500 Grapevine, Texas Industrial
Development Corporation Revenue,
(American Airlines, Inc. Project)
Series 1984B-2, (Bayerische
Landesbank LOC),
5.500% 12/01/24**.................. $ 1,500
1,600 Gulf Coast, Texas Industrial
Development Authority Marine
Terminal Revenue, (Amoco Oil
Company Project) Series 1993, AMT,
(BP Amoco plc Guarantee),
5.700% 04/01/28**#................. 1,600
3,400 Gulf Coast, Texas Waste Disposal
Authority PCR, (Amoco Oil Company
Project) Series 1994, AMT, (BP
Amoco plc Guarantee),
5.700% 06/01/24**.................. 3,400
15,000 Mesquite, Texas Independent School
District GO, (Texas Permanent Fund
Insured, Morgan Guaranty Trust
SBPA), Mandatory Put 02/01/01,
4.450% 08/15/25.................... 15,005
1,200 Nueces County, Texas Health
Facilities Development Corporation
Revenue, (Driscoll Foundation
Childrens Hospital Project) Series
1985, (Bank One of Texas, N.A.
LOC),
5.550% 07/01/15**.................. 1,200
3,300 Panhandle-Plains, Texas Higher
Education Authority Student Loan
Revenue, Series 1991B, AMT,
(Student Loan Marketing Guarantee),
5.500% 06/01/21**.................. 3,300
5,000 Panhandle-Plains, Texas Higher
Education Authority Student Loan
Revenue, Series 1997Y, AMT,
(Student Loan Marketing Guarantee),
5.500% 10/01/02**.................. 5,000
6,000 Port of Corpus Christi, Texas
Industrial Development Corporation
Environmental Facilities Revenue,
(Citgo Petroleum Corporation
Project) Series 1998, AMT, (Bank
One Oklahoma N.A. LOC),
5.750% 08/01/28**.................. 6,000
8,000 Sulphur Springs, Texas IDR, (Hon
Industries Inc. Project) Series
1985, (Northern Trust Company LOC),
5.700% 12/01/13**#................. 8,000
55,000 Texas Municipal Gas Corporation Gas
Reserves Revenue, Sr. Lien, Series
1998, (FSA Insured, Societe
Generale SBPA),
5.450% 01/15/23**.................. 55,000
2,100 Texas Sabine River Authority PCR,
(Texas Utilities Electric Company
Project) Series 1995A, AMT, (Morgan
Guaranty Trust LOC),
5.650% 04/01/30**.................. 2,100
65,000 Texas State TRAN, Series 2000,
5.250% 08/31/01.................... 65,558
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
TEXAS -- (CONTINUED)
$ 1,000 Trinity River, Texas Industrial
Development Authority Revenue,
(Toys R Us - Nytex Inc. Project)
Series 1984, (Bankers Trust Company
LOC),
5.625% 11/01/14**#................. $ 1,000
----------
205,343
----------
UTAH -- 0.9%
9,900 Intermountain Power Agency Municipal
Trust Receipts Power Supply
Revenue, Series 1996CMC-4, (FSA
Insured, Chase Manhattan SBPA),
5.650% 07/01/03**#(--)............. 9,900
3,200 West Valley City, Utah Industrial
Development Authority Revenue,
(Johnson Matthey Inc. Project)
Series 1987, (HSC Bank of USA LOC),
5.650% 12/01/11**.................. 3,200
----------
13,100
----------
VERMONT -- 1.7%
6,390 Vermont Educational and Health
Buildings Financing Agency Revenue,
(Middlebury College Project) Series
1988A, Mandatory Put 05/01/01,
4.350% 05/01/28.................... 6,390
7,455 Vermont Educational and Health
Buildings Financing Agency Revenue,
(Middlebury College Project) Series
1988A, Mandatory Put 11/01/00,
3.850% 11/01/00.................... 7,455
10,300 Vermont Industrial Development
Authority Revenue, (Ryegate Wood
Energy Company Project) Series
1990, AMT, (ABN AMRO Bank N.V.
LOC),
5.650% 12/01/15**.................. 10,300
----------
24,145
----------
VIRGINIA -- 1.8%
5,600 Albemarle County, Virginia Industrial
Development Authority Health
Services Revenue, (University of
Virginia Health Services Foundation
Project) Series 1996, (First Union
National Bank LOC),
5.400% 02/01/26**.................. 5,600
6,425 Madison County, Virginia Industrial
Development Authority Revenue,
(Madison Wood Preservers Project)
Series 1998, AMT, (Wachovia Bank of
North Carolina LOC),
5.700% 06/01/13**#................. 6,425
13,080 Virginia Beach, Virginia Development
Authority Multi-Family Housing
Revenue, (Briarwood Apartments
Project) Series 1999PT-1146,
(Merrill Lynch Guarantee, Merrill
Lynch SBPA),
5.770% 04/01/23**##(--)............ 13,080
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
VIRGINIA -- (CONTINUED)
$ 1,075 Winchester, Virginia Industrial
Development Authority Revenue,
(Midwesco Filter Resource, Inc.
Project) Series 1995, (Harris Trust
& Savings Bank LOC),
5.750% 08/01/07**.................. $ 1,075
----------
26,180
----------
WASHINGTON -- 0.0%(!)
600 Port of Skagit County, Washington
Industrial Development Corporation
Revenue, (Cascade Clear Water
Company Project) Series 1995, AMT,
(Key Bank N.A. LOC),
5.750% 12/01/20**#................. 600
----------
WEST VIRGINIA -- 0.8%
800 Ohio County, West Virginia IDR, (Ohio
Valley - Clarksburg Drug Company
Project) Series 1986, AMT, (PNC
Bank of Ohio, N.A. LOC),
4.600% 12/01/01**#................. 800
10,000 Pleasants County, West Virginia
County Commission IDR, (Simex, Inc.
Building Project) Series 1999, AMT,
(PNC Bank N.A. LOC),
5.600% 12/01/19**.................. 10,000
----------
10,800
----------
WISCONSIN -- 4.3%
13,500 Kenosha, Wisconsin Unified School
District No. 001 TRAN, Series
1999A, (Monumental Life GIC),
4.150% 10/06/00.................... 13,501
18,000 Kenosha, Wisconsin Unified School
District No. 001 TRAN, Series
2000A, (AIG GIC),
4.750% 10/05/01.................... 18,069
820 Milwaukee, Wisconsin IDR, (Mandel
Company Project) Series 1997, AMT,
(US Bank, N.A. LOC),
6.000% 04/01/07**.................. 820
4,150 Pleasant Prairie, Wisconsin IDR,
(Nucon Corporation Project) Series
1995, AMT, (American National Bank
& Trust Company LOC),
5.650% 02/01/22**#................. 4,150
25,370 Wisconsin State Health and
Educational Facilities Authority
Revenue, (St. Luke's Medical Center
Project) Series 1987, (First
National Bank of Chicago LOC),
5.550% 12/01/17**#................. 25,370
----------
61,910
----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $1,442,551).................. 1,442,551
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C>
TOTAL INVESTMENTS
(Cost $1,442,551*)........ 101.1% $1,442,551
----------
OTHER ASSETS AND LIABILITIES
(NET)..................... (1.1)%
Receivable for investment securities
sold.............................. $ 11,000
Receivable for Fund shares sold..... 21,817
Interest receivable................. 8,877
Payable for Fund shares redeemed.... (9,883)
Investment advisory fee payable..... (166)
Administration fee payable.......... (24)
Shareholder servicing and
distribution fees payable......... (476)
Due to custodian.................... (9,961)
Distributions payable............... (4,777)
Payable for investment securities
purchased......................... (31,369)
Accrued Trustees' fees and
expenses.......................... (32)
Accrued expenses and other
liabilities....................... (116)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................. (15,110)
----------
NET ASSETS.................. 100.0% $1,427,441
==========
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold.................. $ (188)
Paid-in capital..................... 1,427,629
----------
NET ASSETS.......................... $1,427,441
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
CAPITAL CLASS SHARES:
($160,079,665 / 160,272,622 shares
outstanding)...................... $1.00
=====
TRUST CLASS SHARES:
($417,555,416 / 417,553,833 shares
outstanding)...................... $1.00
=====
LIQUIDITY CLASS SHARES:
($59,689,541 / 59,689,453 shares
outstanding)...................... $1.00
=====
ADVISER CLASS SHARES:
($99,061,320 / 99,119,274 shares
outstanding)...................... $1.00
=====
INVESTOR CLASS SHARES:
($53,849,130 / 53,894,375 shares
outstanding)...................... $1.00
=====
MARKET CLASS SHARES:
($164,999,784 / 165,000,010 shares
outstanding)...................... $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS RESERVES MONEY MARKET FUNDS
Nations Municipal Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<C> <S> <C>
DAILY CLASS SHARES:
($464,014,534 / 464,020,996 shares
outstanding)...................... $1.00
=====
SERVICE CLASS SHARES:
($8,100,008 / 8,100,010 shares
outstanding)...................... $1.00
=====
INVESTOR B SHARES:
($91,995 / 91,995 shares
outstanding)...................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 2000. These securities are subject to demand
features of either one, seven or thirty days.
(--) Restricted Security (Note 5).
# Security not registered under the Securities Act of 1933, as amended.
These securities may be resold in transactions exempt from registration to
qualified institutional buyers.
## Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration to qualified institutional buyers.
(!) Amount represents less than 0.1%.
Nations Municipal Reserves had the following industry concentrations greater
than 10% at September 30, 2000 (as a percentage of net assets):
Education Revenue 22.0%
HealthCare Revenue 17.6%
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
MUNICIPAL BONDS AND NOTES -- 99.7%
CALIFORNIA -- 98.9%
$15,480 Alameda County, California Corridor
Transportation Authority Revenue,
Series 1999CMC-1,
4.650% 04/01/07**##................ $ 15,480
1,570 Alameda County, California Industrial
Development Authority Revenue,
(Adeline Association Project)
Series 1997A, AMT,
4.600% 11/01/27**.................. 1,570
1,075 Alameda County, California Industrial
Development Authority Revenue,
(Plyproperties Project) Series
1997A, AMT,
4.600% 05/01/27**.................. 1,075
2,795 Alameda County, California
Multi-Family Housing Revenue,
(Berkeleyan Project) Series 1998A,
AMT, (Wells Fargo Bank N.A. LOC),
3.650% 04/01/28**.................. 2,795
10,000 Alameda County, California Public
Financing Authority Revenue,
(Alameda Point and Improvement
Project) Series 1999A,
4.400% 09/01/12**.................. 10,000
22,000 Alemeda County, California GO TRAN,
Series 2000,
5.000% 07/02/01.................... 22,111
2,900 Alemeda County, California Industrial
Development Authority Revenue,
(West Coast Pack LLC Project)
Series 1999A, AMT, (LaSalle
National Bank LOC),
3.650% 04/01/29**.................. 2,900
3,000 Anaheim, California Housing Authority
Multi-Family Housing Revenue
Refunding, (Park Vista Apartments
Project) Series 1993A,
4.400% 12/15/23**.................. 3,000
5,500 Anaheim, California Unified High
School District Certificates of
Participation, (School Faculty
Bridging Funding Project) Series
1999, (FSA Insured, First Union
National Bank SBPA),
4.500% 09/01/13**.................. 5,500
6,000 California Community College
Financing Authority TRAN, Series
2000B,
5.000% 08/03/01.................... 6,059
20,000 California Community Financing
Authority TRAN, Series 2000A,
5.000% 06/29/01.................... 20,108
14,275 California Educational Facilities
Authority Revenue, Series 2000A,
4.820% 10/01/27**##................ 14,275
20,000 California GO,
3.850% 10/12/00**.................. 20,000
25,000 California GO,
3.950% 10/18/00**.................. 25,000
6,000 California GO,
3.700% 12/07/00**.................. 6,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$15,100 California GO,
4.820% 04/01/04**(!)............... $ 15,100
10,000 California GO,
4.820% 02/01/06**##.................. 10,000
8,380 California GO,
4.820% 10/01/24**##.................. 8,380
17,000 California Golden Empire Schools
Financing Authority Lease Revenue,
(Kern High School District Project)
Series 1999, (Canadian Imperial
Bank of Commerce LOC),
4.400% 08/01/29**.................. 17,000
2,045 California Golden Empire Schools
Financing Authority Revenue, (Kern
High School District Project)
Series 1995A, (Canadian Imperial
Bank LOC),
4.500% 12/01/24**.................. 2,045
3,700 California Health Facilities
Financing Authority Revenue
Refunding, (St. Joseph Health
Systems Project) Series 1985A,
4.750% 07/01/12**.................. 3,700
7,000 California Health Facilities
Financing Authority Revenue,
(Adventist Health Systems Project)
Series 1998B,
4.750% 09/01/28**.................. 7,000
10,995 California Health Facilities
Financing Authority Revenue, Series
1998CMC-6,
4.650% 06/01/12**##................ 10,995
6,365 California Health Facilities
Financing Authority Revenue, Series
1999,
5.020% 12/01/25**##................ 6,365
2,000 California Housing Finance Agency
Multi-Unit Rental Housing Revenue,
Series 1992, (MBIA Insured),
5.550% 08/01/10**.................. 2,000
2,000 California Housing Finance Agency
Multi-Unit Rental Housing Revenue,
Series 1992A, (MBIA Insured),
4.200% 08/01/07**.................. 2,000
3,145 California Housing Finance Agency
Multi-Unit Rental Housing Revenue,
Series 1992A, (MBIA Insured),
4.200% 08/01/08**.................. 3,145
11,950 California Housing Finance Agency
Multi-Unit Rental Housing,
4.820% 08/01/10**##................ 11,950
4,850 California Housing Finance Agency
Revenue, Series 1993PA-58,
4.520% 02/01/24**##................ 4,850
2,800 California Housing Finance Agency
Revenue, Series 1995,
4.600% 08/01/26**.................. 2,800
3,400 California Housing Finance Agency
Revenue, Series 2000G, AMT, (FSA
Insured),
4.300% 08/01/31**.................. 3,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$10,000 California Infrastructure and
Economic Development Bank Revenue,
(Independent Systems Operations
Corporation Project) Series 2000A,
4.400% 04/01/08**.................. $ 10,000
2,200 California M-S-R Public Power Agency
Revenue, (San Juan Project) Series
1997D, (MBIA Insured, National
Westminster LOC),
4.400% 07/01/18**.................. 2,200
3,600 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1996A,
AMT, (UBS AG LOC),
4.500% 12/01/16**................... 3,600
14,500 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1996B,
AMT, (Rabobank Nederland LOC),
4.450% 12/01/16**.................. 14,500
11,000 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1996F,
(Banque Nationale de Paris LOC),
4.700% 11/01/26**.................. 11,000
43,920 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1996G,
4.650% 02/01/16**.................. 43,920
26,600 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1997B,
AMT, (Deutsche Bank A.G. LOC),
4.700% 11/01/26**.................. 26,600
59,500 California Pollution Control
Financing Authority PCR Refunding,
(Pacific Gas and Electric
Corporation Project) Series 1997C,
AMT, (KBC Bank N.V. LOC),
4.800% 11/01/26**.................. 59,499
3,790 California Pollution Control
Financing Authority PCR, (Chevron
USA, Inc. Project) Series 1984,
4.150% 05/15/02.................... 3,790
8,100 California Pollution Control
Financing Authority PCR, (Pacific
Gas & Electric Corporation Project)
Series 1996, (Morgan Guaranty Trust
LOC),
5.150% 11/01/26**.................. 8,100
19,300 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985B,
3.550% 03/01/08.................... 19,300
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 9,600 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985B,
3.800% 03/01/08.................... $ 9,600
21,000 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985C,
3.650% 03/01/08**.................. 21,000
3,500 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985C,
3.750% 03/01/08**.................. 3,500
16,000 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985D,
3.700% 01/17/01**.................. 16,000
7,750 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1985D,
3.750% 03/01/08**.................. 7,750
2,900 California Pollution Control
Financing Authority PCR, (Southern
California Edison Company Project)
Series 1986B,
5.050% 02/28/08**.................. 2,900
2,400 California Pollution Control
Financing Authority Resource
Recovery PCR, (Delano Project)
Series 1990, AMT, (ABN-AMRO Bank
N.V. LOC),
5.100% 08/01/19**.................. 2,400
3,875 California Pollution Control
Financing Authority Resource
Recovery PCR, (Delano Project)
Series 1990, AMT, (ABN-AMRO Bank
N.V. LOC),
5.100% 08/01/19**................... 3,875
5,200 California Pollution Control
Financing Authority Resource
Recovery PCR, (Delano Project)
Series 1991, AMT,
5.100% 08/01/19**................... 5,200
8,000 California Pollution Control
Financing Authority Resource
Recovery Revenue, (Atlantic
Richfield Company Project) Series
1994A,
4.700% 12/01/24**................... 8,000
2,900 California Pollution Control
Financing Authority Resource
Recovery Revenue, (OMS Equity
Stanislaus Project) Series 1987,
AMT, (Westdeutsche Landesbank LOC),
5.050% 12/01/17**.................. 2,900
1,800 California Pollution Control
Financing Authority Solid Waste
Disposal Revenue, (Santa Clara
Valley Industries Project) Series
1998A, AMT,
4.750% 03/01/18**.................. 1,800
3,000 California Pollution Control
Financing Authority, Solid Waste
Disposal Revenue, (Shell Martinez
Refining Company Project) Series
1996A, (GTY AGMT),
4.750% 10/01/31**.................. 3,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$35,000 California School Cash Reserve
Program Authority, Series 2000,
5.250% 07/03/01.................... $ 35,281
10,315 California School Financing Authority
Revenue, (Interim Financing
Notes-Smart Bonds) Series 2000C,
4.750% 10/01/00.................... 10,315
17,270 California State Department of Water
Resources, 4.820% 12/01/29**##..... 17,270
2,975 California State Economic Development
Financing Authority IDR, (Serra
Microchassis Project) Series 1997,
(U.S. Bank LOC) 5.150%
08/01/27**......................... 2,975
6,425 California State Floating Rate
Receipts, Series 1997SG-89, 4.520%
10/01/18**##....................... 6,425
8,385 California State Floating Rate
Receipts, Series 1997SG-95, 4.520%
09/01/16**##....................... 8,385
35,000 California State GO, Floating Rate
Receipts, Series 1998PT-1072,
4.520% 02/01/21**##................ 35,000
3,975 California State GO, Municipal Trust
Receipts, Series 1996SGB-7, (FGIC-
TCRS Insured), 4.820%
09/01/21**##....................... 3,975
15,950 California State GO, Municipal Trust
Receipts, Series 1997SGA-54, (AMBAC
Insured, Societe Generale SBPA),
5.030% 06/01/21**##................ 15,950
17,085 California State GO, Series 1997,
AMT, 3.600% 12/01/32............... 17,040
3,900 California Statewide Communities
Development Authority Certificates
of Participation, (University
Retirement Community at Davis
Project) Series 1998, (Bank of
Scotland LOC), 4.700% 11/15/28**... 3,900
1,000 California Statewide Communities
Development Authority Lease
Revenue, Floating Rate Receipts,
Series 1999PA-457, 5.420%
10/01/33**##....................... 1,000
4,600 California Statewide Communities
Development Authority Multi-Family
Housing Revenue, (Pittsburg Plaza
Apartments Project) Series 1997K,
AMT, 4.450% 09/01/27**............. 4,600
3,170 California Statewide Communities
Development Authority Multi-Family
Revenue, (Aegis Pleasant Hill
Project) Series 1997H, AMT, (The
Chase Manhattan Bank LOC), 4.600%
07/01/27**......................... 3,170
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 6,240 California Statewide Communities
Development Authority Multi-Family
Revenue, Floating Rate Receipts,
Series 1999PT-1161, 4.770%
12/01/41**##....................... $ 6,240
25,940 California Statewide Communities
Development Authority Special
Facilities Revenue, Series 1999,
5.420% 10/01/34**##................ 25,940
32,825 California Statewide Communities
Development Authority TRAN, Series
2000A, (FSA Insured), 5.250%
06/29/01........................... 33,054
2,120 California Statewide Communities
Development Authority, 5.400%
10/01/00........................... 2,120
8,200 Camarillo, California Multi-Family
Housing Revenue, (Ponderosa Senior
Housing-Heritage Park Project)
Series 1989A, AMT, (FNMA Collateral
Agreement), 4.450% 07/15/19**...... 8,200
5,000 Chula Vista, California IDR, (San
Diego Gas and Electric Company
Project) Series 1992C, AMT, 4.050%
10/16/00........................... 5,000
7,600 Chula Vista, California IDR, (San
Diego Gas and Electric Company
Project) Series 1996B, AMT, 5.100%
12/01/21**......................... 7,600
3,600 Chula Vista, California Industrial
Development Revenue Refunding, (San
Diego Gas Project) Series 1996A,
5.000% 07/01/21**.................. 3,600
7,040 Chula Vista, California Multi-Family
Housing Revenue, (Terra Nova
Project) Series 1992A, (Dresdner
Bank AG LOC), 4.400% 03/01/05**.... 7,040
6,000 East Bay Municipal Utility District
Water Series 3.050% 10/05/00**..... 6,000
3,000 East Bay Municipal Utility
District - Water Series 3.800%
11/15/00**......................... 3,000
12,600 East Bay Municipal Utility
District - Water Series 4.000%
12/06/00**......................... 12,600
25,000 Eastern Municipal Water District,
California Water and Sewer Revenue
Certificates of Participation,
Series 1993B, (FGIC Insured),
4.400% 07/01/20**.................. 25,000
3,800 Elsinore Valley, California Municipal
Water District Certificates of
Participation, Series 2000A, (FGIC
Insured), 4.500% 07/01/29**........ 3,800
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 4,000 Fremont, California Multi-Family
Housing Revenue, (Creekside Village
Apartments Project) Series 1985D,
(KBC Bank N.V. LOC), 4.300%
09/01/07**......................... $ 4,000
15,200 Fresno, California Sewer Revenue
Refunding, Sub-Lien, Series 2000A,
(FGIC Insured), 4.400%
09/01/25**......................... 15,200
15,000 Glendale, California Certificates of
Participation, (Police Building
Project) Series 2000, (Morgan
Guaranty Trust SPA), 4.400%
06/01/30**......................... 15,000
2,850 Hayward, California Multi-Family
Housing Revenue, (Shorewood
Project) Series 1984A, (FGIC
Insured), 4.400% 08/01/14**........ 2,850
4,655 Indio, California Multi-Family
Housing Revenue, (Western Federal
Savings Project) Series 1985,
(Wells Fargo and Company LOC),
4.550% 06/01/05**.................. 4,655
7,800 Irvine Ranch, California Water
District Revenue Refunding GO,
Series 1985B, (Landesbank Hessen
LOC), 4.950% 10/01/04**............ 7,800
1,900 Irvine Ranch, California Water
District Revenue, Series 1991,
4.750% 08/01/16**.................. 1,900
2,900 Kern County, California Certificates
of Participation, (Kern Public
Facilities Project) Series 1986B,
(Bayerische Landesbank LOC), 4.500%
08/01/06**......................... 2,900
3,100 Kern County, California Certificates
of Participation, (Kern Public
Facilities Project) Series 1986D,
(Bayerische Landesbank LOC), 4.500%
08/01/06**......................... 3,100
30,000 Kern County, California TRAN, Series
2000, 5.000% 07/02/01.............. 30,151
100 Livermore, California Multi-Family
Revenue, Series 1988A, (FNMA
Collateral Agreement), 4.500%
07/15/18**......................... 100
13,000 Long Beach, California GO, 4.920%
05/15/15**##....................... 13,000
18,400 Long Beach, California Harbor
Revenue, Series 1994A, AMT, 3.650%
03/04/23**......................... 18,400
1,060 Long Beach, California Harbor
Revenue, Series 2000PA-651, AMT,
(FGIC Insured), 4.600%
05/15/19**##....................... 1,060
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 9,995 Long Beach, California Revenue,
Municipal Securities Trust
Receipts, Series 1998CMC-1, 4.750%
05/15/07**##....................... $ 9,995
10,060 Los Angeles County, California
Capital Asset Lease Corporation,
3.850% 10/06/00**.................. 10,060
18,000 Los Angeles County, California
Capital Asset Lease Corporation,
3.950% 10/18/00**.................. 18,000
4,000 Los Angeles County, California
Certificates of Participation,
(Schools Pooled Financing Program)
Series 2000B, 5.000% 10/02/01...... 4,040
17,500 Los Angeles County, California GO
TRAN, Series 2000A, 5.000%
06/29/01........................... 17,606
15,000 Los Angeles County, California
Metropolitan Transportation
Authority Revenue, Series 1996-2,
(FSA Insured), 4.820%
07/01/21**##....................... 15,000
16,070 Los Angeles County, California
Metropolitan Transportation
Authority Revenue, Series
1996SGB-3, (FSA Insured), 4.820%
07/01/16**##....................... 16,070
13,355 Los Angeles County, California
Metropolitan Transportation
Authority Sales Tax Revenue, Series
1998CMC-2, 4.650% 07/01/07**##..... 13,355
18,600 Los Angeles County, California
Pension Obligation Revenue
Refunding, Series 1996A, 4.250%
06/30/07**......................... 18,600
3,000 Los Angeles County, California
Pension Obligation Revenue
Refunding, Series 1996B, (AMBAC
Insured, Dexia Credit Local de
France SPA), 4.250% 06/30/07**..... 3,000
8,000 Los Angeles County, California
Pension Obligation Revenue
Refunding, Series 1996C, (AMBAC
Insured, Bank of Nova Scotia SPA),
4.250% 06/30/07**.................. 8,000
3,600 Los Angeles County, California
Transportation Commission Sales Tax
Revenue Refunding, Series 1992A,
(FGIC Insured, Bayerische
Landesbank SPA), 4.250%
07/01/12**......................... 3,600
51,000 Los Angeles, California Department of
Water and Power Electric Plant
Revenue, Series 2000B-2, 4.450%
02/01/10**......................... 51,000
2,500 Los Angeles, California Department of
Water and Power Electric Plant
Revenue, Series 2000D, (Toronto
Dominion Bank LOC), 4.450%
02/01/10**......................... 2,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 6,700 Los Angeles, California Department of
Water and Power Electric Plant
Revenue, Series 2000E-2, 4.450%
02/01/10**......................... $ 6,700
2,000 Los Angeles, California Industrial
Development Authority IDR, (Delta
Tau Data Systems, Inc. Project)
Series 1998, AMT, 4.700%
08/01/23**......................... 2,000
22,100 Los Angeles, California Multi-Family
Housing Revenue, (Fountain Park
Project) Series 1999P, AMT, 4.450%
04/15/33**......................... 22,100
10,000 Los Angeles, California Wastewater
Systems Revenue, Series 1996SGA-26,
(MBIA Insured, Societe Generale
SPA), 5.000% 06/01/24**##.......... 10,000
4,750 Metropolitan Water District of
Southern California Waterworks
Revenue, Series 1999, 4.520%
07/01/27**##....................... 4,750
15,000 Metropolitan Water District of
Southern California Waterworks
Revenue, Series 2000B-1,
(Westdeutsche Landesbank SPA)
4.750% 07/01/35**.................. 15,000
3,175 Modesto, California Multi-Family
Housing Revenue Refunding, (Live
Oaks Apartments Project) Series
1994, (FNMA Collateral Agreement),
4.450% 09/01/24**.................. 3,175
3,800 Monterey County, California Financing
Authority Revenue, (Reclamation and
Distribution Projects) Series 1995,
(Dexia Credit Local de France LOC),
4.450% 09/01/36**.................. 3,800
9,700 Oakland, California JT Powers
Financing Authority, Lease Revenue,
Series 1998A-1, (FSA Insured),
4.350% 08/01/21**.................. 9,700
15,000 Oakland-Alameda County, California
Coliseum Authority, Lease Revenue,
2.550% 02/01/25**.................. 15,000
15,000 Oakland-Alameda County, California
Coliseum Authority, Lease Revenue,
(Coliseum Project) Series 2000C-1,
4.400% 02/01/25**.................. 15,000
24,125 Orange County, California Apartment
Development Revenue Refunding,
(Aliso Creek Project) Series 1992B,
4.350% 11/01/22**.................. 24,125
11,800 Orange County, California Apartment
Development Revenue Refunding,
(Bluffs Apartments Project) Series
1999C, 4.300% 12/01/29**........... 11,800
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$31,000 Orange County, California Apartment
Development Revenue, (Bear Brand
Apartments Project) Series 1985Z,
(KBC Bank N.V. LOC), 4.300%
11/01/07**......................... $ 31,000
20,000 Orange County, California Housing
Authority Apartment Development
Revenue Refunding, (Oasis
Martinique Project) Series 1998I,
(FNMA Collateral Agreement), 4.350%
06/15/28**......................... 20,000
2,105 Orange County, California Sanitation
Districts Certificates of
Participation, (District Nos. 1-3,
5-7, 11,13 and 14 Projects) Series
1990, (National Westminster LOC),
4.750% 08/01/15**.................. 2,105
13,000 Orange County, California Sanitation
Districts Certificates of
Participation, Series 1992C, (FGIC
Insured), 5.000% 08/01/17**........ 13,000
1,000 Orange County, California Special
Assessment Improvement Bond,
(Assessment District No. 88
Project) Series 1988-1, (Societe
Generale LOC), 4.750% 09/02/18**... 1,000
1,200 Paramount, California Unified School
District Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997, 4.500% 09/01/08**............ 1,200
1,925 Paramount, California Unified School
District Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997, 4.500% 09/01/15**............ 1,925
1,940 Paramount, California Unified School
District Certificates of
Participation, (School Facilities
Bridge Funding Project) Series
1997, 4.500% 09/01/27**............ 1,940
10,000 Port of Oakland, California, 3.700%
01/17/01**......................... 10,000
4,200 Rancho, California Water District
Financing Authority Revenue, Series
1998A, (FGIC Insured), 4.400%
08/15/29**......................... 4,200
7,000 Regents of The University of
California, 3.640% 09/01/30**...... 7,000
34,700 Riverside County, California Asset
Leasing Corporation Leasehold
Revenue, (Southwest Justice Center
Project) Series 2000B, (MBIA
Insured, Dexia Credit Local France
SPA), 4.250% 11/01/32**............ 34,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$ 9,400 Riverside County, California
Community Facilities District
Special Tax Revenue Refunding,
Series 1997, (KBC Bank N.V. LOC),
4.450% 09/01/14**.................. $ 9,400
11,400 Riverside County, California Special
Tax Refunding, (Community
Facilities District No. 89 Project)
Series 1998-5, (AMBAC Insured),
4.450% 09/01/28**.................. 11,400
6,800 Riverside, California Electric
Revenue, Series 1998, (AMBAC
Insured), 4.650% 10/01/11**##...... 6,800
5,145 Sacramento California Multi-Family
Housing Revenue, (Smoketree
Project) Series 1990A, (FNMA
Collateral Agreement), 4.400%
04/15/10**......................... 5,145
4,500 Sacramento County, California Housing
Authority Multi-Family Housing
Revenue, (California Place
Apartments Project) Series 1997B,
AMT, (Bank One Arizona, N.A. LOC),
4.340% 05/01/27**.................. 4,500
5,100 Sacramento County, California
Multi-Family Housing Revenue,
Series 1985B, (Bank One Arizona,
N.A. LOC), 4.300% 04/15/07**....... 5,100
25,000 Sacramento County, California
Sanitation District Financing
Authority Revenue, Series 2000C,
(Credit Agricole LOC), 4.500%
12/01/30**......................... 25,000
15,000 Sacramento County, California TRAN,
Series 2000, 5.000% 10/04/01....... 15,156
2,595 San Diego County, California
Multi-Family Housing Revenue,
(Country Hills Project) Series
1994A, 4.400% 08/15/13**........... 2,595
5,000 San Diego County, California Teeter
Obligation Notes, 3.875%
10/19/00**......................... 5,000
10,550 San Diego, California Housing
Authority Multi-Family Housing
Revenue Refunding, Series 1994A,
4.350% 12/01/22**.................. 10,550
10,515 San Diego, California Unified School
District TRAN, Series 2000A, 5.250%
10/04/01........................... 10,658
14,300 San Francisco City and County,
California Airport Commission
International Airport Revenue,
Municipal Trust Receipts, Series
1997SGA-50, AMT, (MBIA Insured),
5.030% 05/01/16**##................ 14,300
9,775 San Francisco City and County,
California Airport Commission
International Airport Revenue,
Series 1997, 4.520% 05/01/20**##... 9,775
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
CALIFORNIA -- (CONTINUED)
$37,700 San Francisco City and County,
California Redevelopment Agency
Multi-Family Housing Revenue, (3rd
and Mission Street Project) Series
1999C, (Bayerische Hypo-Und
Vereinsbank LOC), 4.450%
07/01/34**......................... $ 37,700
2,210 San Francisco City and County,
California Redevelopment Financing
Authority Revenue, (Yerba Buena
Garden Project) Series 1995, (Bank
of Tokyo Mitsubishi LOC), 2.550%
09/01/06**......................... 2,210
17,500 San Francisco, California Airport
Subordinate, 3.700% 01/16/01**..... 17,500
15,145 San Francisco, California Airport
Subordinate, Series B, 3.850%
11/10/00**......................... 15,145
26,000 San Jose, California Financing
Authority Leasehold Revenue, (Civic
Center Phase 1 Project) Series
2000, (Morgan Guaranty Trust LOC),
4.350% 04/01/30**.................. 26,000
6,200 San Jose-Santa Clara, California
Water and Sewer Financing Authority
Revenue, Series 1995B, (FGIC
Insured, Bank of Nova Scotia SPA),
4.250% 11/15/11**.................. 6,200
15,915 Santa Clara, California Electric
Revenue, Series 1985A, 4.400%
07/01/10**......................... 15,915
13,700 Simi Valley, California Community
Development Agency Multi-Family
Housing Revenue, Series 1985A,
4.650% 05/01/10**.................. 13,700
25,000 South Coast, California Local
Education Agencies TRAN, Series
2000, 5.000% 07/03/01.............. 25,139
11,645 South Orange County, California
Public Financing Authority Special
Tax Revenue, Series 1994-146, (FGIC
Insured, Morgan Guaranty Trust),
4.770% 02/15/12**##................ 11,645
25,594 Southeast California Resource
Recovery Facilities Authority Lease
Revenue, 4.500% 12/01/18**......... 25,594
8,300 Southern California Metropolitan
Water District, 3.050%
10/19/00**......................... 8,300
20,300 Southern California Metropolitan
Water District, 3.950%
12/07/00**......................... 20,300
10,000 Southern California Public Power
Authority Revenue Refunding, (Palo
Verde Project) Series 1996C, (AMBAC
Insured), 4.250% 07/01/17**........ 10,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS RESERVES MONEY MARKET FUNDS
Nations California Tax-Exempt Reserves
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
-------------------------------------------------------------
<S> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 8,600 Southern California Public Power
Authority, Transmission Revenue
Refunding, (Southern Transmission
Project) Series 1996B, (FSA
Insured), 4.400% 07/01/23**........ $ 8,600
4,030 Southern Kern, California Unified
School District Certificates of
Participation, (Building Program)
Series 1998A, (FSA Insured), 4.450%
09/01/26**......................... 4,030
11,300 University of California Revenue,
Series 1998PT-1057, 4.520%
09/01/19**##....................... 11,300
----------
1,848,336
----------
PUERTO RICO -- 0.8%
3,660 Puerto Rico Electric Power Authority
Revenue, Series 2000-147, 4.770%
01/01/09**##....................... 3,660
11,200 Puerto Rico Government Development
Bond, 4.300% 11/16/00.............. 11,200
----------
14,860
----------
TOTAL MUNICIPAL BONDS AND NOTES (Cost
$1,863,196)........................ 1,863,196
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost
$1,863,196*)................. 99.7% 1,863,196
----------
OTHER ASSETS AND LIABILITIES
(NET)........................ 0.3%
Cash................................... $ 132
Receivable for investment securities
sold................................. 48,300
Receivable for Fund shares sold........ 4,720
Interest receivable.................... 12,618
Payable for Fund shares redeemed....... (3,233)
Investment advisory fee payable........ (223)
Administration fee payable............. (31)
Shareholder servicing and distribution
fees payable......................... (702)
Distributions payable.................. (4,678)
Payable for investment securities
purchased............................ (50,839)
Accrued Trustees' fees and expenses.... (22)
Accrued expenses and other
liabilities.......................... (398)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 5,644
----------
NET ASSETS..................... 100.0% $1,868,840
==========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
--------------------------------------------------------------
<S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 60
Accumulated net realized loss on
investments sold..................... (136)
Paid-in capital........................ 1,868,916
----------
NET ASSETS............................. $1,868,840
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
TRUST CLASS SHARES:
($345,038,069 / 345,055,237 shares
outstanding)......................... $1.00
=====
ADVISER CLASS SHARES:
($574,839,375 / 574,894,469 shares
outstanding)......................... $1.00
=====
INVESTOR CLASS SHARES:
($270,579,758 / 270,615,442 shares
outstanding)......................... $1.00
=====
DAILY CLASS SHARES:
($678,382,985 / 678,414,155 shares
outstanding)......................... $1.00
=====
</TABLE>
---------------
* Aggregate cost for federal tax purposes.
** Variable rate demand notes. The interest rate shown reflects the rate in
effect at September 30, 2000. These securities are subject to demand
features of either one, seven or thirty days.
(--) Restricted Security (Note 5).
## Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration to qualified institutional buyers.
Nations California Tax-Exempt Reserves had the following industry concentrations
greater than 10% at September 30, 2000 (as a percentage of net assets):
Pollution Control Revenue 14.0%
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ABBREVIATIONS:
AMBAC American Municipal Bond Assurance
Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CFC Cooperative Finance Corporation
FGIC Financial Guaranty Insurance
Corporation
FGIC-TCRS Financial Guaranty Insurance
Corporation-Transferable Custodial
Receipts
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FMAC Federal Mortgage Acceptance Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GIC Guaranteed Investment Contracts
GNMA Government National Mortgage
Association
GO General Obligation
GTD STD LNS Guaranteed Student Loan
GTY-AGMT Guarantee Agreement
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MTN Medium Term Note
PCR Pollution Control Revenue
SBPA Standby Bond Purchase Agreement
SLMA Student Loan Marketing Association
TAN Tax Anticipation Note
TRAN Tax and Revenue Anticipation Note
TVA Tennessee Valley Authority
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
CASH MONEY MARKET
RESERVES RESERVES
----------------------------------------------
<S> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 1,303,182 $ 230,478
------------------- -------------------
EXPENSES:
Investment advisory fee..................................... 29,597 5,265
Administration fee.......................................... 19,731 3,510
Transfer agent fees......................................... 675 125
Custodian fees.............................................. 960 200
Trustees' fees and expenses................................. 11 11
Registration and filing fees................................ 770 98
Legal and audit fees........................................ 178 51
Interest expense............................................ 34 15
Other....................................................... 573 106
------------------- -------------------
Subtotal................................................ 52,529 9,381
Shareholder servicing and distribution fees:
Trust Class Shares........................................ 874 2
Liquidity Class Shares.................................... 6,844 2,332
Adviser Class Shares...................................... 5,501 766
Investor Class Shares..................................... 13,190 6
Market Class Shares....................................... 6,393 3,002
Daily Class Shares........................................ 31,506 13
Service Class Shares...................................... 2,984 592
Investor B Shares......................................... 54 13
Investor C Shares......................................... 2 --*
------------------- -------------------
Total expenses.......................................... 119,877 16,107
Fees waived by investment advisor, administrator and/or
distributor............................................... (18,661) (4,264)
Fees reduced by credits allowed by the custodian............ (13) (7)
------------------- -------------------
Net expenses............................................ 101,203 11,836
------------------- -------------------
NET INVESTMENT INCOME/(LOSS)................................ 1,201,979 218,642
------------------- -------------------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS..................... (13) (26)
------------------- -------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 1,201,966 $ 218,616
=================== ===================
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
TREASURY GOVERNMENT MUNICIPAL CALIFORNIA TAX-
RESERVES RESERVES RESERVES EXEMPT RESERVES
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 229,510 $ 65,438 $ 32,980 $ 32,686
------------------- ------------------- ------------------- -------------------
5,435 1,515 1,153 1,305
3,624 1,010 769 870
132 35 29 28
203 55 43 41
11 11 11 9
183 86 71 --
58 36 33 25
3 -- -- --
107 57 124 83
------------------- ------------------- ------------------- -------------------
9,756 2,805 2,233 2,361
229 60 239 190
2,008 1,221 333 --
1,825 576 111 527
1,828 218 101 462
3,281 915 347 --
2,707 542 1,471 2,023
1,260 87 27 --
1 1 1 --
-- 2 --* --
------------------- ------------------- ------------------- -------------------
22,895 6,427 4,863 5,563
(4,176) (1,783) (970) (621)
(4) (4) -- --
------------------- ------------------- ------------------- -------------------
18,715 4,640 3,893 4,942
------------------- ------------------- ------------------- -------------------
210,795 60,798 29,087 27,744
------------------- ------------------- ------------------- -------------------
-- 2 (1) 6
------------------- ------------------- ------------------- -------------------
$ 210,795 $ 60,800 $ 29,086 $ 27,750
=================== =================== =================== ===================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
CASH RESERVES
-----------------------------------
SIX MONTHS
ENDED
9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00
-----------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)................................ $ 1,201,979 $ 1,373,822
Net realized gain/(loss) on investments..................... (13) --*
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 1,201,966 1,373,822
Distributions to shareholders from net investment income:
Capital Class Shares...................................... (327,887) (414,318)
Trust Class Shares........................................ (54,997) (76,641)
Liquidity Class Shares.................................... (50,246) (87,223)
Adviser Class Shares...................................... (135,206) (197,413)
Investor Class Shares..................................... (228,080) (165,797)
Market Class Shares....................................... (84,508) (109,461)
Daily Class Shares........................................ (304,659) (308,509)
Service Class Shares...................................... (16,124) (14,305)
Investor B Shares......................................... (261) (147)
Investor C Shares......................................... (11) (8)
Net increase/(decrease) in net assets from shares of
beneficial interest transactions.......................... 5,970,195 28,501,193
-------------- --------------
Net increase/(decrease) in net assets....................... 5,970,182 28,501,193
NET ASSETS:
Beginning of period......................................... 36,660,676 8,159,483
-------------- --------------
End of period............................................... $ 42,630,858 $ 36,660,676
============== ==============
Undistributed net investment income/(loss)/(distributions in
excess of net investment income) at end of period......... $ 27 $ 27
============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
MONEY MARKET RESERVES TREASURY RESERVES
------------------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 218,642 $ 174,898 $ 210,795 $ 286,460
(26) 37 -- 2
-------------- -------------- -------------- --------------
218,616 174,935 210,795 286,462
(139,603) (116,028) (37,628) (60,453)
(151) --* (13,781) (25,621)
(16,988) (7,507) (13,285) (15,194)
(18,750) (8,010) (42,963) (69,878)
(112) --* (30,303) (17,605)
(39,630) (42,564) (41,383) (64,280)
(128) (154) (24,982) (28,194)
(3,220) (609) (6,467) (5,233)
(60) (26) (3) (2)
--* --* -- --
159,427 5,195,291 470,710 3,333,918
-------------- -------------- -------------- --------------
159,401 5,195,328 470,710 3,333,920
6,672,258 1,476,930 6,535,833 3,201,913
-------------- -------------- -------------- --------------
$ 6,831,659 $ 6,672,258 $ 7,006,543 $ 6,535,833
============== ============== ============== ==============
$ 4 $ 4 $ -- $ --
============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
GOVERNMENT RESERVES
-----------------------------------
SIX MONTHS
ENDED
9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00
-----------------------------------
<S> <C> <C>
(IN THOUSANDS)
Net investment income/(loss)................................ $ 60,798 $ 83,814
Net realized gain/(loss) on investments..................... 2 (2)
-------------- --------------
Net increase/(decrease) in net assets resulting from
operations................................................ 60,800 83,812
Distributions to shareholders from net investment income:
Capital Class Shares...................................... (13,282) (23,268)
Trust Class Shares........................................ (3,709) (5,300)
Liquidity Class Shares.................................... (8,837) (5,772)
Adviser Class Shares...................................... (13,870) (19,122)
Investor Class Shares..................................... (3,659) (6,724)
Market Class Shares....................................... (11,842) (17,190)
Daily Class Shares........................................ (5,127) (6,296)
Service Class Shares...................................... (460) (135)
Investor B Shares......................................... (5) (2)
Investor C Shares......................................... (7) (5)
Net increase/(decrease) in net assets from shares of
beneficial interest transactions.......................... 241,303 1,076,543
-------------- --------------
Net increase/(decrease) in net assets....................... 241,305 1,076,541
NET ASSETS
Beginning of period......................................... 1,788,489 711,948
-------------- --------------
End of period............................................... $ 2,029,794 $ 1,788,489
============== ==============
Undistributed net investment income/(loss)/(distributions in
excess of net investment income) at end of period......... $ -- $ --
============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax-
Exempt Reserves on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
MUNICIPAL RESERVES CALIFORNIA TAX-EXEMPT RESERVES
-------------------------------------- ------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 PERIOD ENDED PERIOD ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00 5/14/99(a)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 29,087 $ 39,643 $ 27,744 $ 38,116 $ 7,788
(1) 5 6 (83) --
-------------- -------------- -------------- -------------- --------------
29,086 39,648 27,750 38,033 7,788
(3,767) (5,572) -- -- --
(9,538) (14,226) (6,577) (8,899) --
(1,539) (3,373) -- -- --
(1,716) (2,695) (6,965) (8,424) (3,459)
(1,077) (2,088) (4,219) (7,183) (2,671)
(2,818) (4,309) -- -- --
(8,544) (7,370) (9,983) (13,611) (1,658)
(86) (10) -- -- --
(1) --* -- -- --
--* -- -- -- --
(83,161) 1,105,502 129,948 266,711 (112,293)
-------------- -------------- -------------- -------------- --------------
(83,161) 1,105,507 129,954 266,627 (112,293)
1,510,602 405,095 1,738,886 1,472,259 1,584,552
-------------- -------------- -------------- -------------- --------------
$ 1,427,441 $ 1,510,602 $ 1,868,840 $ 1,738,886 $ 1,472,259
============== ============== ============== ============== ==============
$ -- $ -- $ 60 $ 60 $ 61
============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS RESERVES MONEY MARKET FUNDS
STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
<CAPTION>
TREASURY RESERVES
(000)
--------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES:
Investment income received................................ $ 229,138
Payment of operating expenses............................. (44,778)
Net proceeds from reverse repurchase agreements
outstanding............................................. (1,388,197)
Net purchases of short-term investments................... 693,106
------------
Cash used by operating and investing activities............. $(510,731)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Fund shares sold............................ 44,093,142
Payment for shares redeemed............................... (43,447,586)
Distributions paid*....................................... (134,821)
Interest expense.......................................... (3)
------------
Cash provided by financing activities....................... 510,732
---------
Increase in cash.......................................... $ 1
Cash at beginning of period............................... 0
---------
Cash at end of period..................................... $ 1
=========
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from operations........ $ 210,795
Decrease in investments................................... $ 918,478
Decrease in payable for reverse repurchase agreement
transactions............................................ (1,388,197)
Decrease in interest and dividends receivable............. 5,349
Decrease in receivable for investments sold............... (5,583,172)
Increase in payable for investments sold.................. 5,364,541
Increase in other assets.................................. (12,456)
Decrease in accrued expenses and other payables........... (26,066)
Interest expense (financing activity) included in
operations.............................................. (3)
------------
Cash used by operating and investing activities............. $(510,731)
=========
</TABLE>
---------------
* Non-cash activities include reinvestment of dividends of $70,895.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY*
<TABLE>
<CAPTION>
CASH RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------------------------
<S> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 89,260,531 $ 122,820,854
Issued in exchange for Horizon Shares of Pacific Horizon
Prime Fund (Note 8)...................................... -- 3,443,782
Issued as reinvestment of dividends........................ 142,810 213,947
Redeemed................................................... (86,709,698) (122,215,403)
------------ -------------
Net increase/(decrease).................................... $ 2,693,643 $ 4,263,180
============ =============
TRUST CLASS SHARES:+
Sold....................................................... $ 1,137,227 $ 6,430,202
Issued as reinvestment of dividends........................ -- 39
Redeemed................................................... (1,071,131) (4,711,099)
------------ -------------
Net increase/(decrease).................................... $ 66,096 $ 1,719,142
============ =============
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 10,397,978 $ 15,520,344
Issued as reinvestment of dividends........................ 23,232 52,021
Redeemed................................................... (10,135,468) (15,598,778)
------------ -------------
Net increase/(decrease).................................... $ 285,742 $ (26,413)
============ =============
ADVISER CLASS SHARES:
Sold....................................................... $ 35,145,500 $ 57,106,751
Issued in exchange for Horizon Service Shares of Pacific
Horizon Prime Fund (Note 8).............................. -- 3,971,137
Issued as reinvestment of dividends........................ 82,449 150,094
Redeemed................................................... (35,564,640) (57,317,806)
------------ -------------
Net increase/(decrease).................................... $ (336,691) $ 3,910,176
============ =============
INVESTOR CLASS SHARES:+
Sold....................................................... $ 5,335,478 $ 15,821,010
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Prime Fund (Note 8).............................. -- 2,543,535
Issued as reinvestment of dividends........................ 181,305 155,909
Redeemed................................................... (4,418,526) (11,452,337)
------------ -------------
Net increase/(decrease).................................... $ 1,098,257 $ 7,068,117
============ =============
MARKET CLASS SHARES:
Sold....................................................... $ 5,273,595 $ 4,232,500
Issued as reinvestment of dividends........................ 178 --
Redeemed................................................... (5,069,668) (2,940,000)
------------ -------------
Net increase/(decrease).................................... $ 204,105 $ 1,292,500
============ =============
DAILY CLASS SHARES:+
Sold....................................................... $ 42,149,396 $ 63,799,324
Issued in exchange for S Shares of Pacific Horizon Prime
Fund (Note 8)............................................ -- 1,587,435
Issued in exchange for X Shares of Pacific Horizon Prime
Fund (Note 8)............................................ -- 2,180,033
Issued as reinvestment of dividends........................ 240,777 300,855
Redeemed................................................... (40,546,056) (58,114,647)
------------ -------------
Net increase/(decrease).................................... $ 1,844,117 $ 9,753,000
============ =============
SERVICE CLASS SHARES:+
Sold....................................................... $ 5,974,012 $ 7,517,812
Issued in exchange for Y Shares of Pacific Horizon Prime
Fund (Note 8)............................................ -- 237,185
Issued as reinvestment of dividends........................ 7,266 7,920
Redeemed................................................... (5,867,178) (7,250,599)
------------ -------------
Net increase/(decrease).................................... $ 114,100 $ 512,318
============ =============
INVESTOR B SHARES:+
Sold....................................................... $ 9,027 $ 17,877
Issued as reinvestment of dividends........................ 193 128
Redeemed................................................... (8,574) (9,177)
------------ -------------
Net increase/(decrease).................................... $ 646 $ 8,828
============ =============
INVESTOR C SHARES:+
Sold....................................................... $ 1,419 $ 1,398
Issued as reinvestment of dividends........................ 6 6
Redeemed................................................... (1,245) (1,059)
------------ -------------
Net increase/(decrease).................................... $ 180 $ 345
============ =============
Total net increase/(decrease).............................. $ 5,970,195 $ 28,501,193
============ =============
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
+ Cash Reserves Trust Class, Investor Class, Daily Class, Service Class,
Investor B and Investor C Shares commenced operations on May 17, 1999,
April 12, 1999, April 12, 1999, April 28, 1999, October 4, 1999 and
October 5, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 46
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
MONEY MARKET RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------------------------
<S> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 32,135,050 $ 47,793,102
Issued as reinvestment of dividends........................ 79,490 80,886
Redeemed................................................... (32,218,771) (44,405,146)
------------ ------------
Net increase/(decrease).................................... $ (4,231) $ 3,468,842
============ ============
TRUST CLASS SHARES:+
Sold....................................................... $ 188,542 $ 38
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (179,498) --
------------ ------------
Net increase/(decrease).................................... $ 9,044 $ 38
============ ============
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 2,900,610 $ 2,774,560
Issued as reinvestment of dividends........................ 11,946 6,835
Redeemed................................................... (3,312,780) (1,836,319)
------------ ------------
Net increase/(decrease).................................... $ (400,224) $ 945,076
============ ============
ADVISER CLASS SHARES:
Sold....................................................... $ 3,144,817 $ 2,686,635
Issued as reinvestment of dividends........................ 14,362 6,832
Redeemed................................................... (3,121,929) (2,146,117)
------------ ------------
Net increase/(decrease).................................... $ 37,250 $ 547,350
============ ============
INVESTOR CLASS SHARES:+
Sold....................................................... $ 7,119 $ 1
Issued as reinvestment of dividends........................ 76 --
Redeemed................................................... (77) --
------------ ------------
Net increase/(decrease).................................... $ 7,118 $ 1
============ ============
MARKET CLASS SHARES:
Sold....................................................... $ 2,405,063 $ 1,714,300
Issued as reinvestment of dividends........................ 1 --
Redeemed................................................... (1,993,064) (1,567,300)
------------ ------------
Net increase/(decrease).................................... $ 412,000 $ 147,000
============ ============
DAILY CLASS SHARES:+
Sold....................................................... $ 7,084 $ 15,330
Issued as reinvestment of dividends........................ 106 152
Redeemed................................................... (7,295) (10,957)
------------ ------------
Net increase/(decrease).................................... $ (105) $ 4,525
============ ============
SERVICE CLASS SHARES:+
Sold....................................................... $ 591,322 $ 144,210
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (492,974) (63,710)
------------ ------------
Net increase/(decrease).................................... $ 98,348 $ 80,500
============ ============
INVESTOR B SHARES:+
Sold....................................................... $ 2,301 $ 3,658
Issued as reinvestment of dividends........................ 44 24
Redeemed................................................... (2,099) (1,742)
------------ ------------
Net increase/(decrease).................................... $ 246 $ 1,940
============ ============
INVESTOR C SHARES:+
Sold....................................................... $ 742 $ 515
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (761) (496)
------------ ------------
Net increase/(decrease).................................... $ (19) $ 19
============ ============
Total net increase/(decrease).............................. $ 159,427 $ 5,195,291
============ ============
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown above for such transactions.
+ Money Market Reserves Trust Class, Investor Class, Daily Class, Service Class,
Investor B and Investor C Shares commenced operations on March 22, 2000, March
3, 2000, July 21, 1999, May 18, 1999, October 5, 1999 and January 6, 2000,
respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
TREASURY RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------------------------
<S> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 6,007,564 $ 9,167,835
Issued in exchange for Horizon Shares of Pacific Horizon
Treasury Fund (Note 8)................................... -- 513,598
Issued as reinvestment of dividends........................ 19,261 40,314
Redeemed................................................... (6,087,534) (10,077,751)
------------ ------------
Net increase/(decrease).................................... $ (60,709) $ (356,004)
============ ============
TRUST CLASS SHARES:+
Sold....................................................... $ 1,093,062 $ 3,540,751
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (1,188,789) (3,034,413)
------------ ------------
Net increase/(decrease).................................... $ (95,727) $ 506,338
============ ============
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 2,102,029 $ 2,222,465
Issued as reinvestment of dividends........................ 6,091 8,575
Redeemed................................................... (2,054,438) (2,170,666)
------------ ------------
Net increase/(decrease).................................... $ 53,682 $ 60,374
============ ============
ADVISER CLASS SHARES:
Sold....................................................... $ 14,805,741 $ 25,468,043
Issued in exchange for Horizon Service Shares of Pacific
Horizon Treasury Fund (Note 8)........................... -- 1,727,418
Issued as reinvestment of dividends........................ 23,171 50,763
Redeemed................................................... (14,760,239) (26,130,165)
------------ ------------
Net increase/(decrease).................................... $ 68,673 $ 1,116,059
============ ============
INVESTOR CLASS SHARES:+
Sold....................................................... $ 1,875,733 $ 2,089,505
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Treasury Fund (Note 8)........................... -- 293,535
Issued as reinvestment of dividends........................ 17,172 12,983
Redeemed................................................... (1,353,743) (1,822,762)
------------ ------------
Net increase/(decrease).................................... $ 539,162 $ 573,261
============ ============
MARKET CLASS SHARES:
Sold....................................................... $ 2,999,005 $ 2,703,000
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (3,152,000) (2,361,000)
------------ ------------
Net increase/(decrease).................................... $ (152,995) $ 342,000
============ ============
DAILY CLASS SHARES:+
Sold....................................................... $ 13,175,596 $ 17,039,452
Issued in exchange for X Shares of Pacific Horizon Treasury
Fund (Note 8)............................................ -- 503,310
Issued as reinvestment of dividends........................ 17,823 26,680
Redeemed................................................... (13,100,168) (16,721,667)
------------ ------------
Net increase/(decrease).................................... $ 93,251 $ 847,775
============ ============
SERVICE CLASS SHARES:+
Sold....................................................... $ 2,289,213 $ 2,616,632
Issued in exchange for Y Shares of Pacific Horizon Treasury
Fund (Note 8)............................................ -- 106,210
Issued as reinvestment of dividends........................ 2,243 2,668
Redeemed................................................... (2,266,135) (2,481,475)
------------ ------------
Net increase/(decrease).................................... $ 25,321 $ 244,035
============ ============
INVESTOR B SHARES:+
Sold....................................................... $ 61 $ 78
Issued as reinvestment of dividends........................ 2 2
Redeemed................................................... (11) --
------------ ------------
Net increase/(decrease).................................... $ 52 $ 80
============ ============
Total net increase/(decrease).............................. $ 470,710 $ 3,333,918
============ ============
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown above for such transactions.
+ Treasury Reserves Trust Class, Investor Class, Daily Class, Service Class and
Investor B Shares commenced operations on May 17, 1999, April 12, 1999, April
12, 1999, May 17, 1999 and October 15, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
---------------------------------
<S> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold....................................................... $ 1,362,798 $ 2,727,353
Issued in exchange for Horizon Shares of: (Note 8)
Pacific Horizon Government Fund.......................... -- 143,953
Pacific Horizon Treasury Only Fund....................... -- 22,370
Issued as reinvestment of dividends........................ 9,797 18,463
Redeemed................................................... (1,404,546) (2,760,363)
----------- -----------
Net increase/(decrease).................................... $ (31,951) $ 151,776
=========== ===========
TRUST CLASS SHARES:+
Sold....................................................... $ 168,301 $ 638,160
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (179,931) (512,656)
----------- -----------
Net increase/(decrease).................................... $ (11,630) $ 125,504
=========== ===========
LIQUIDITY CLASS SHARES:
Sold....................................................... $ 1,124,362 $ 1,203,931
Issued as reinvestment of dividends........................ 6,178 4,795
Redeemed................................................... (856,643) (1,127,949)
----------- -----------
Net increase/(decrease).................................... $ 273,897 $ 80,777
=========== ===========
ADVISER CLASS SHARES:
Sold....................................................... $ 831,240 $ 1,869,514
Issued in exchange for Horizon Service Shares of: (Note 8)
Pacific Horizon Government Fund.......................... -- 182,672
Pacific Horizon Treasury Only Fund....................... -- 277,586
Issued as reinvestment of dividends........................ 11,183 18,700
Redeemed................................................... (922,745) (1,960,102)
----------- -----------
Net increase/(decrease).................................... $ (80,322) $ 388,370
=========== ===========
INVESTOR CLASS SHARES:+
Sold....................................................... $ 297,127 $ 642,355
Issued in exchange for Pacific Horizon Shares of: (Note 8)
Pacific Horizon Government Fund.......................... -- 145,185
Pacific Horizon Treasury Only Fund....................... -- 123,908
Issued as reinvestment of dividends........................ 2,865 5,984
Redeemed................................................... (325,161) (805,691)
----------- -----------
Net increase/(decrease).................................... $ (25,169) $ 111,741
=========== ===========
MARKET CLASS SHARES:
Sold....................................................... $ 886,138 $ 806,000
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (790,000) (770,000)
----------- -----------
Net increase/(decrease).................................... $ 96,138 $ 36,000
=========== ===========
DAILY CLASS SHARES:+
Sold....................................................... $ 89,261 $ 682,291
Issued as reinvestment of dividends........................ 4,232 6,296
Redeemed................................................... (81,567) (517,066)
----------- -----------
Net increase/(decrease).................................... $ 11,926 $ 171,521
=========== ===========
SERVICE CLASS SHARES:+
Sold....................................................... $ 99,004 $ 26,700
Issued as reinvestment of dividends........................ -- --
Redeemed................................................... (90,000) (16,700)
----------- -----------
Net increase/(decrease).................................... $ 9,004 $ 10,000
=========== ===========
INVESTOR B SHARES:+
Sold....................................................... $ 364 $ 196
Issued as reinvestment of dividends........................ 4 2
Redeemed................................................... (360) (90)
----------- -----------
Net increase/(decrease).................................... $ 8 $ 108
=========== ===========
INVESTOR C SHARES:+
Sold....................................................... $ 194 $ 817
Issued as reinvestment of dividends........................ 3 4
Redeemed................................................... (795) (75)
----------- -----------
Net increase/(decrease).................................... $ (598) $ 746
=========== ===========
Total net increase/(decrease).............................. $ 241,303 $ 1,076,543
=========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
+ Government Reserves Trust Class, Investor Class, Daily Class, Service Class,
Investor B and Investor C Shares commenced operations on May 17, 1999, April
12, 1999, April 12, 1999, June 8, 1999, November 2, 1999 and December 21,
1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
--------------------------------
<S> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:
Sold...................................................... $ 1,193,756 $ 1,263,836
Issued in exchange for Horizon Shares of Pacific Horizon
Tax Exempt Fund (Note 8)................................ -- 328,296
Issued as reinvestment of dividends....................... 1,012 1,494
Redeemed.................................................. (1,207,551) (1,555,201)
----------- -----------
Net increase/(decrease)................................... $ (12,783) $ 38,425
=========== ===========
TRUST CLASS SHARES:+
Sold...................................................... $ 365,990 $ 1,809,173
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (475,200) (1,282,344)
----------- -----------
Net increase/(decrease)................................... $ (109,210) $ 526,829
=========== ===========
LIQUIDITY CLASS SHARES:
Sold...................................................... $ 318,630 $ 461,685
Issued as reinvestment of dividends....................... 1,295 3,275
Redeemed.................................................. (349,274) (444,304)
----------- -----------
Net increase/(decrease)................................... $ (29,349) $ 20,656
=========== ===========
ADVISER CLASS SHARES:
Sold...................................................... $ 184,204 $ 385,433
Issued in exchange for Horizon Service Shares of Pacific
Horizon Tax Exempt Fund (Note 8)........................ -- 217,928
Issued as reinvestment of dividends....................... 1,362 2,609
Redeemed.................................................. (164,006) (583,893)
----------- -----------
Net increase/(decrease)................................... $ 21,560 $ 22,077
=========== ===========
INVESTOR CLASS SHARES:+
Sold...................................................... $ 42,288 $ 319,498
Issued in exchange for Pacific Horizon Shares of Pacific
Horizon Tax Exempt Fund (Note 8)........................ -- 150,443
Issued as reinvestment of dividends....................... 904 2,042
Redeemed.................................................. (54,117) (407,201)
----------- -----------
Net increase/(decrease)................................... $ (10,925) $ 64,782
=========== ===========
MARKET CLASS SHARES:
Sold...................................................... $ 429,019 $ 528,500
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (413,000) (526,500)
----------- -----------
Net increase/(decrease)................................... $ 16,019 $ 2,000
=========== ===========
DAILY CLASS SHARES:+
Sold...................................................... $ 387,661 $ 760,267
Issued in exchange for S Shares of Pacific Horizon Tax
Exempt Fund (Note 8).................................... -- 57,381
Issued as reinvestment of dividends....................... 7,115 7,359
Redeemed.................................................. (360,350) (395,365)
----------- -----------
Net increase/(decrease)................................... $ 34,426 $ 429,642
=========== ===========
SERVICE CLASS SHARES:+
Sold...................................................... $ 22,100 $ 3,000
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. (15,000) (2,000)
----------- -----------
Net increase/(decrease)................................... $ 7,100 $ 1,000
=========== ===========
INVESTOR B SHARES:+
Sold...................................................... $ -- $ 100
Issued as reinvestment of dividends....................... 1 --
Redeemed.................................................. -- (9)
----------- -----------
Net increase/(decrease)................................... $ 1 $ 91
=========== ===========
Total net increase/(decrease)............................. $ (83,161) $ 1,105,502
=========== ===========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
+ Municipal Reserves Trust Class, Investor Class, Daily Class, Service Class
and Investor B Shares commenced operations on May 17, 1999, April 12, 1999,
April 12, 1999, January 21, 2000 and December 27, 1999, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS RESERVES MONEY MARKET FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY* (CONTINUED)
<TABLE>
<CAPTION>
CALIFORNIA TAX-EXEMPT RESERVES
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2000 MAY 14, 1999(a)
-------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
CAPITAL CLASS SHARES:+
Sold...................................................... $ 396,097 $ 1,050,171 $ --
Issued as reinvestment of dividends....................... -- -- --
Redeemed.................................................. (445,898) (655,315) --
--------- ----------- ---------
Net increase/(decrease)................................... $ (49,801) $ 394,856 $ --
========= =========== =========
ADVISER CLASS SHARES:
Sold...................................................... $ 727,707 $ 1,308,639 $ 360,557
Issued as reinvestment of dividends....................... 5,580 8,051 1,134
Redeemed.................................................. (518,768) (1,592,374) (434,617)
--------- ----------- ---------
Net increase/(decrease)................................... $ 214,519 $ (275,684) $ (72,926)
========= =========== =========
INVESTOR CLASS SHARES:
Sold...................................................... $ 332,012 $ 962,357 $ 484,932
Issued as reinvestment of dividends....................... 3,505 8,632 2,092
Redeemed.................................................. (348,979) (1,189,554) (523,636)
--------- ----------- ---------
Net increase/(decrease)................................... $ (13,462) $ (218,565) $ (36,612)
========= =========== =========
DAILY CLASS SHARES:
Sold...................................................... $ 673,960 $ 1,791,638 $ 160,950
Issued as reinvestment of dividends....................... 8,371 11,724 1,318
Redeemed.................................................. (703,639) (1,437,258) (165,023)
--------- ----------- ---------
Net increase/(decrease)................................... $ (21,308) $ 366,104 $ (2,755)
========= =========== =========
Total net increase/(decrease)............................. $ 129,948 $ 266,711 $(112,293)
========= =========== =========
</TABLE>
---------------
* Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same
as the amounts shown above for such transactions.
+ California Tax-Exempt Reserves Trust Class Shares commenced operations on
May 24, 1999.
(a) Represents financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund, which was reorganized into California Tax-
Exempt Reserves on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
(This page intentionally left blank)
47
<PAGE> 52
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME (LOSS) INCOME
--------------------------------------------------------
<S> <C> <C> <C>
CASH RESERVES
CAPITAL CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0320 $(0.0320)
Year ended 3/31/2000........................................ 1.00 0.0532 (0.0532)
Period ended 3/31/1999*..................................... 1.00 0.0484 (0.0484)
Year ended 4/30/1998........................................ 1.00 0.0554 (0.0554)
Year ended 4/30/1997........................................ 1.00 0.0531 (0.0531)
Year ended 4/30/1996........................................ 1.00 0.0570 (0.0570)
Year ended 4/30/1995........................................ 1.00 0.0480 (0.0480)
TRUST CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0315 $(0.0315)
Period ended 3/31/2000**.................................... 1.00 0.0463 (0.0463)
LIQUIDITY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0312 $(0.0312)
Year ended 3/31/2000........................................ 1.00 0.0517 (0.0517)
Period ended 3/31/1999*..................................... 1.00 0.0470 (0.0470)
Year ended 4/30/1998........................................ 1.00 0.0539 (0.0539)
Year ended 4/30/1997........................................ 1.00 0.0516 (0.0516)
Year ended 4/30/1996........................................ 1.00 0.0555 (0.0555)
Year ended 4/30/1995........................................ 1.00 0.0471 (0.0471)
ADVISER CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0307 $(0.0307)
Year ended 3/31/2000........................................ 1.00 0.0507 (0.0507)
Period ended 3/31/1999*..................................... 1.00 0.0461 (0.0461)
Year ended 4/30/1998........................................ 1.00 0.0529 (0.0529)
Year ended 4/30/1997........................................ 1.00 0.0506 (0.0506)
Year ended 4/30/1996........................................ 1.00 0.0545 (0.0545)
Period ended 4/30/1995**.................................... 1.00 0.0316 (0.0316)
INVESTOR CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0302 $(0.0302)
Period ended 3/31/2000**.................................... 1.00 0.0484 (0.0484)
MARKET CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0297 $(0.0297)
Year ended 3/31/2000........................................ 1.00 0.0487 (0.0487)
Period ended 3/31/1999*..................................... 1.00 0.0447 (0.0447)
Year ended 4/30/1998........................................ 1.00 0.0519 (0.0519)
Period ended 4/30/1997**.................................... 1.00 0.0493 (0.0493)
DAILY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0290 $(0.0290)
Period ended 3/31/2000**.................................... 1.00 0.0459 (0.0459)
SERVICE CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0270 $(0.0270)
Period ended 3/31/2000**.................................... 1.00 0.0404 (0.0404)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0265 $(0.0265)
Period ended 3/31/2000**.................................... 1.00 0.0225 (0.0225)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0265 $(0.0265)
Period ended 3/31/2000**.................................... 1.00 0.0223 (0.0223)
</TABLE>
---------------
+ 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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
** Cash Reserves Trust Class, Adviser Class, Investor Class, Market Class,
Daily Class, Service Class, Investor B and Investor C Shares commenced
operations on May 17, 1999, September 22, 1994, April 12, 1999, May 3, 1996,
April 12, 1999, April 28, 1999, October 4, 1999 and October 5, 1999,
respectively.
(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) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME (LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.24% $11,338,200 0.20%+(a)(b) 6.40%+ 0.27%+(a)
1.00 5.46 8,642,609 0.20(a)(b) 5.37 0.29(a)
1.00 4.95 4,379,430 0.20+(a) 5.24+ 0.43+(a)
1.00 5.70 3,051,559 0.20(b) 5.54 0.44
1.00 5.44 1,684,233 0.20 5.32 0.45
1.00 5.84 607,643 0.20 5.53 0.51
1.00 4.91 134,064 0.29 4.96 0.52
$1.00 3.19% $ 1,785,118 0.30%+(a)(b) 6.30%+ 0.37%+(a)
1.00 4.72 1,719,142 0.30+(a)(b) 5.27+ 0.39+(a)
$1.00 3.16% $ 1,682,613 0.35%+(a)(b) 6.25%+ 1.12%+(a)
1.00 5.30 1,396,969 0.35(a)(b) 5.22 1.14(a)
1.00 4.80 1,423,382 0.35+(a) 5.09+ 1.28+(a)
1.00 5.53 1,107,869 0.35(b) 5.39 1.29
1.00 5.28 419,851 0.35 5.17 0.60
1.00 5.70 35,477 0.35 5.38 0.66
1.00 4.81 2 0.38 4.87 0.61
$1.00 3.11% $ 4,443,321 0.45%+(a)(b) 6.15%+ 0.52%+(a)
1.00 5.19 4,780,346 0.45(a)(b) 5.12 0.54(a)
1.00 4.71 870,170 0.45+(a) 4.99+ 0.68+(a)
1.00 5.43 672,417 0.45(b) 5.29 0.69
1.00 5.19 247,551 0.45 5.07 0.70
1.00 5.58 397,809 0.45 5.28 0.76
1.00 3.20 47,682 0.54+ 4.71+ 0.77+
$1.00 3.06% $ 8,165,880 0.55%+(a)(b) 6.05%+ 0.62%+(a)
1.00 4.94 7,068,117 0.55+(a)(b) 5.02+ 0.64+(a)
$1.00 3.01% $ 2,982,911 0.65%+(a)(b) 5.95%+ 0.72%+(a)
1.00 4.98 2,779,002 0.65(a)(b) 4.92 0.74(a)
1.00 4.56 1,486,502 0.61+(a) 4.83+ 0.88+(a)
1.00 5.33 649,503 0.55(b) 5.19 0.89
1.00 5.04 333,000 0.55+ 4.97+ 0.80+
$1.00 2.93% $11,596,435 0.80%+(a)(b) 5.80%+ 0.87%+(a)
1.00 4.69 9,753,000 0.80+(a)(b) 4.77+ 0.89+(a)
$1.00 2.73% $ 626,382 1.20%+(a)(b) 5.40%+ 1.27%+(a)
1.00 4.11 512,318 1.20+(a)(b) 4.37+ 1.29+(a)
$1.00 2.68% $ 9,473 1.30%+(a)(b) 5.30%+ 1.37%+(a)
1.00 2.28 8,828 1.30+(a)(b) 4.27+ 1.39+(a)
$1.00 2.68% $ 525 1.30%+(a)(b) 5.30%+ 1.37%+(a)
1.00 2.25 345 1.30+(a)(b) 4.27+ 1.39+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 54
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME (LOSS) INCOME
--------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET RESERVES
CAPITAL CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0318 $(0.0318)
Year ended 3/31/2000........................................ 1.00 0.0535 (0.0535)
Period ended 3/31/1999*,**.................................. 1.00 0.0438 (0.0438)
Period ended 5/15/1998...................................... 1.00 0.0252 (0.0252)
Year ended 11/30/1997....................................... 1.00 0.0545 (0.0545)
Year ended 11/30/1996....................................... 1.00 0.0516 (0.0516)
Year ended 11/30/1995....................................... 1.00 0.0561 (0.0561)
TRUST CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0314 $(0.0314)
Period ended 3/31/2000***................................... 1.00 0.0016 (0.0016)
LIQUIDITY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0311 $(0.0311)
Year ended 3/31/2000........................................ 1.00 0.0520 (0.0520)
Period ended 3/31/1999*,***................................. 1.00 0.0281 (0.0281)
ADVISER CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0306 $(0.0306)
Year ended 3/31/2000........................................ 1.00 0.0548 (0.0548)
Period ended 3/31/1999*,***................................. 1.00 0.0344 (0.0344)
INVESTOR CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0212 $(0.0212)
Period ended 3/31/2000***................................... 1.00 0.0043 (0.0043)
MARKET CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0296 $(0.0296)
Year ended 3/31/2000........................................ 1.00 0.0490 (0.0490)
Period ended 3/31/1999*,***................................. 1.00 0.0214 (0.0214)
DAILY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0288 $(0.0288)
Period ended 3/31/2000***................................... 1.00 0.0346 (0.0346)
SERVICE CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0268 $(0.0268)
Period ended 3/31/2000***................................... 1.00 0.0386 (0.0386)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0263 $(0.0263)
Period ended 3/31/2000***................................... 1.00 0.0227 (0.0227)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0076 $(0.0076)
Period ended 3/31/2000***................................... 1.00 0.0112 (0.0112)
</TABLE>
---------------
+ 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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
** The financial information for the fiscal periods through May 15, 1998
reflect the financial information for the Emerald Prime Advantage
Institutional Fund, which was reorganized into Capital Class Shares as of
May 22, 1998.
*** Money Market Reserves Trust Class, Liquidity Class, Adviser Class, Investor
Class, Market Class, Daily Class, Service Class, Investor B and Investor C
Shares commenced operations on March 22, 2000, August 7, 1998, July 2,
1998, March 3, 2000, October 9, 1998, July 21, 1999, May 18, 1999, October
5, 1999 and January 6, 2000, respectively.
(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) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 55
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME (LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.23% $4,060,105 0.20%+(a)(b) 6.34%+ 0.27%+(a)
1.00 5.48 4,064,349 0.20(a)(b) 5.64 0.33(a)
1.00 4.47 595,482 0.20+(a) 4.87+ 0.46+(a)
1.00 2.55 118,880 0.20+ 5.54+ 0.27+
1.00 5.58 177,908 0.20 5.45 0.28
1.00 5.29 133,044 0.35 5.16 0.35
1.00 5.76 131,089 0.40 5.60 0.46
$1.00 3.18% $ 9,083 0.30%+(a)(b) 6.24%+ 0.37%+(a)
1.00 0.16 38 0.30+(a)(b) 5.54+ 0.43+(a)
$1.00 3.15% $ 545,930 0.35%+(a)(b) 6.19%+ 1.12%+(a)
1.00 5.32 946,156 0.35(a)(b) 5.49 1.18(a)
1.00 2.87 1,078 0.35+(a) 4.72+ 1.31+(a)
$1.00 3.10% $ 590,975 0.45%+(a)(b) 6.09%+ 0.52%+(a)
1.00 5.62 553,728 0.45(a)(b) 5.39 0.58(a)
1.00 3.46 6,377 0.45+(a) 4.62+ 0.71+(a)
$1.00 2.14% $ 7,119 0.55%+(a)(b) 5.99%+ 0.62%+(a)
1.00 0.43 1 0.55+(a)(b) 5.29+ 0.68+(a)
$1.00 3.00% $1,432,994 0.65%+(a)(b) 5.89%+ 0.72%+(a)
1.00 5.01 1,021,002 0.65(a)(b) 5.19 0.78(a)
1.00 2.14 873,993 0.65+(a) 4.42+ 0.91+(a)
$1.00 2.92% $ 4,419 0.80%+(a)(b) 5.74%+ 0.87%+(a)
1.00 3.51 4,525 0.80+(a)(b) 5.04+ 0.93+(a)
$1.00 2.71% $ 178,848 1.20%+(a)(b) 5.34%+ 1.27%+(a)
1.00 3.93 80,500 1.20+(a)(b) 4.64+ 1.33+(a)
$1.00 2.66% $ 2,186 1.30%+(a)(b) 5.24%+ 1.37%+(a)
1.00 2.29 1,940 1.30+(a)(b) 4.54+ 1.43+(a)
$1.00 0.74% $ -- 1.30%+(a)(b) 5.24%+ 1.37%+(a)
1.00 1.12 19 1.30+(a)(b) 4.54+ 1.43+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME/(LOSS) INCOME
----------------------------------------------
<S> <C> <C> <C>
TREASURY RESERVES
CAPITAL CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0306 $(0.0306)
Year ended 3/31/2000........................................ 1.00 0.0504 (0.0504)
Period ended 3/31/1999*..................................... 1.00 0.0462 (0.0462)
Year ended 4/30/1998........................................ 1.00 0.0541 (0.0541)
Year ended 4/30/1997........................................ 1.00 0.0519 (0.0519)
Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556)
Year ended 4/30/1995........................................ 1.00 0.0480 (0.0480)
TRUST CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0301 $(0.0301)
Period ended 3/31/2000**.................................... 1.00 0.0436 (0.0436)
LIQUIDITY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0299 $(0.0299)
Year ended 3/31/2000........................................ 1.00 0.0489 (0.0489)
Period ended 3/31/1999*..................................... 1.00 0.0448 (0.0448)
Year ended 4/30/1998........................................ 1.00 0.0526 (0.0526)
Year ended 4/30/1997........................................ 1.00 0.0504 (0.0504)
Year ended 4/30/1996........................................ 1.00 0.0541 (0.0541)
Year ended 4/30/1995........................................ 1.00 0.0462 (0.0462)
ADVISER CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0294 $(0.0294)
Year ended 3/31/2000........................................ 1.00 0.0479 (0.0479)
Period ended 3/31/1999*..................................... 1.00 0.0439 (0.0439)
Year ended 4/30/1998........................................ 1.00 0.0516 (0.0516)
Year ended 4/30/1997........................................ 1.00 0.0494 (0.0494)
Year ended 4/30/1996........................................ 1.00 0.0531 (0.0531)
Period ended 4/30/1995**.................................... 1.00 0.0308 (0.0308)
INVESTOR CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0289 $(0.0289)
Period ended 3/31/2000**.................................... 1.00 0.0455 (0.0455)
MARKET CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0284 $(0.0284)
Year ended 3/31/2000........................................ 1.00 0.0459 (0.0459)
Period ended 3/31/1999*..................................... 1.00 0.0423 (0.0423)
Year ended 4/30/1998........................................ 1.00 0.0505 (0.0505)
Period ended 4/30/1997**.................................... 1.00 0.0481 (0.0481)
DAILY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0276 $(0.0276)
Period ended 3/31/2000**.................................... 1.00 0.0431 (0.0431)
SERVICE CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0256 $(0.0256)
Period ended 3/31/2000**.................................... 1.00 0.0358 (0.0358)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0251 $(0.0251)
Period ended 3/31/2000**.................................... 1.00 0.0192 (0.0192)
</TABLE>
---------------
+ 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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
** Treasury Reserves Trust Class, Adviser Class, Investor Class, Market Class,
Daily Class, Service Class and Investor B Shares commenced operations on
May 17, 1999, September 22, 1994, April 12, 1999, May 3, 1996, April 12,
1999, May 17, 1999 and October 15, 1999, respectively.
(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) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 57
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME (LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.10% $ 965,995 0.20%+(a)(b) 6.12%+ 0.27%+(a)
1.00 5.15 1,026,684 0.20(a)(b) 5.06 0.28(a)
1.00 4.72 1,382,688 0.20+(a) 4.99+ 0.45+(a)
1.00 5.55 246,058 0.20 5.41 0.45
1.00 5.30 468,975 0.20 5.20 0.46
1.00 5.71 304,342 0.20 5.50 0.51
1.00 4.91 251,694 0.20 4.79 0.50
$1.00 3.05% $ 410,610 0.30%+(a)(b) 6.02%+ 0.37%+(a)
1.00 4.45 506,339 0.30+(a)(b) 4.96 0.38+(a)
$1.00 3.03% $ 418,441 0.35%+(a)(b) 5.97%+ 1.17%+(a)
1.00 5.00 364,761 0.35(a)(b) 4.91 1.18(a)
1.00 4.58 304,387 0.35+(a) 4.84+ 1.35+(a)
1.00 5.38 743,410 0.35 5.26 1.35
1.00 5.15 81,575 0.35 5.05 0.61
1.00 5.57 11,804 0.35 5.35 0.66
1.00 4.71 674 0.49 4.50 0.79
$1.00 2.97% $1,529,633 0.45%+(a)(b) 5.87%+ 0.52%+(a)
1.00 4.89 1,460,966 0.45(a)(b) 4.81 0.53(a)
1.00 4.48 344,906 0.45+(a) 4.74+ 0.70+(a)
1.00 5.28 222,760 0.45 5.16 0.70
1.00 5.06 154,256 0.45 4.95 0.71
1.00 5.45 175,691 0.45 5.25 0.76
1.00 3.11 55,762 0.45+ 4.54+ 0.75+
$1.00 2.92% $1,112,421 0.55%+(a)(b) 5.77%+ 0.62%+(a)
1.00 4.65 573,261 0.55+(a)(b) 4.71+ 0.63+(a)
$1.00 2.87% $1,358,932 0.65%+(a)(b) 5.67%+ 0.72%+(a)
1.00 4.68 1,511,932 0.65(a)(b) 4.61 0.73(a)
1.00 4.31 1,169,932 0.62+(a) 4.57+ 0.90+(a)
1.00 5.18 265,495 0.55 5.06 0.90
1.00 4.92 123,396 0.55+ 4.85+ 0.81+
$1.00 2.80% $ 941,023 0.80%+(a)(b) 5.52%+ 0.87%+(a)
1.00 4.40 847,775 0.80+(a)(b) 4.46+ 0.88+(a)
$1.00 2.59% $ 269,355 1.20%+(a)(b) 5.12%+ 1.27%+(a)
1.00 3.63 244,035 1.20+(a)(b) 4.06+ 1.28+(a)
$1.00 2.54% $ 133 1.30%+(a)(b) 5.02%+ 1.37%+(a)
1.00 1.94 80 1.30+(a)(b) 3.96+ 1.38+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 58
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME/(LOSS) INCOME
----------------------------------------------
<S> <C> <C> <C>
GOVERNMENT RESERVES
CAPITAL CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0314 $(0.0314)
Year ended 3/31/2000........................................ 1.00 0.0516 (0.0516)
Period ended 3/31/1999*..................................... 1.00 0.0468 (0.0468)
Year ended 4/30/1998........................................ 1.00 0.0543 (0.0543)
Year ended 4/30/1997........................................ 1.00 0.0520 (0.0520)
Year ended 4/30/1996........................................ 1.00 0.0556 (0.0556)
Year ended 4/30/1995........................................ 1.00 0.0463 (0.0463)
TRUST CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0309 $(0.0309)
Period ended 3/31/2000**.................................... 1.00 0.0448 (0.0448)
LIQUIDITY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0306 $(0.0306)
Year ended 3/31/2000........................................ 1.00 0.0501 (0.0501)
Period ended 3/31/1999*..................................... 1.00 0.0454 (0.0454)
Year ended 4/30/1998........................................ 1.00 0.0528 (0.0528)
Year ended 4/30/1997........................................ 1.00 0.0505 (0.0505)
Year ended 4/30/1996........................................ 1.00 0.0537 (0.0537)
Year ended 4/30/1995........................................ 1.00 0.0453 (0.0453)
ADVISER CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0301 $(0.0301)
Year ended 3/31/2000........................................ 1.00 0.0491 (0.0491)
Period ended 3/31/1999*..................................... 1.00 0.0445 (0.0445)
Year ended 4/30/1998........................................ 1.00 0.0518 (0.0518)
Year ended 4/30/1997........................................ 1.00 0.0495 (0.0495)
Year ended 4/30/1996........................................ 1.00 0.0527 (0.0527)
Period ended 4/30/1995**.................................... 1.00 0.0299 (0.0299)
INVESTOR CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0296 $(0.0296)
Period ended 3/31/2000**.................................... 1.00 0.0467 (0.0467)
MARKET CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0291 $(0.0291)
Year ended 3/31/2000........................................ 1.00 0.0471 (0.0471)
Period ended 3/31/1999*..................................... 1.00 0.0431 (0.0431)
Year ended 4/30/1998........................................ 1.00 0.0508 (0.0508)
Period ended 4/30/1997**.................................... 1.00 0.0482 (0.0482)
DAILY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0284 $(0.0284)
Period ended 3/31/2000**.................................... 1.00 0.0443 (0.0443)
SERVICE CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0264 $(0.0264)
Period ended 3/31/2000**.................................... 1.00 0.0348 (0.0348)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0259 $(0.0259)
Period ended 3/31/2000**.................................... 1.00 0.0185 (0.0185)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0259 $(0.0259)
Period ended 3/31/2000**.................................... 1.00 0.0126 (0.0126)
</TABLE>
---------------
+ 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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
** Government Reserves Trust Class, Adviser Class, Investor Class, Market
Class, Daily Class, Service Class, Investor B and Investor C Shares
commenced operations on May 17, 1999, September 22, 1994, April 12, 1999,
May 3, 1996, April 12, 1999, June 8, 1999, November 2, 1999 and December
21, 1999, respectively.
(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) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 59
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME (LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 3.18% $349,909 0.20%+(a) 6.26%+ 0.28%+(a)
1.00 5.28 381,336 0.20(a)(b) 5.26 0.29(a)
1.00 4.78 229,561 0.20+(a) 5.05+ 0.44+(a)
1.00 5.57 190,607 0.20 5.43 0.45
1.00 5.33 125,377 0.20(a) 5.22 0.49(a)
1.00 5.71 58,121 0.20 5.48 0.53
1.00 4.72 2 0.32 4.35 0.54
$1.00 3.12% $113,828 0.30%+(a) 6.16%+ 0.38%+(a)
1.00 4.57 125,504 0.30+(a)(b) 5.16+ 0.39+(a)
$1.00 3.10% $414,173 0.35%+(a) 6.11%+ 1.13%+(a)
1.00 5.12 140,328 0.35(a)(b) 5.11 1.14(a)
1.00 4.63 59,551 0.35+(a) 4.90+ 1.29+(a)
1.00 5.40 32,773 0.35 5.28 1.30
1.00 5.19 6,482 0.35(a) 5.07 0.64(a)
1.00 5.51 129 0.35 5.33 0.68
1.00 4.59 2 0.40 4.27 0.62
$1.00 3.05% $396,706 0.45%+(a) 6.01%+ 0.53%+(a)
1.00 5.02 477,205 0.45(a)(b) 5.01 0.54(a)
1.00 4.54 88,836 0.45+(a) 4.80+ 0.69+(a)
1.00 5.30 70,164 0.45 5.18 0.70
1.00 5.07 24,845 0.45(a) 4.97 0.74(a)
1.00 5.39 108,168 0.45 5.23 0.78
1.00 3.04 99,246 0.57+ 4.10+ 0.79+
$1.00 3.00% $ 86,531 0.55%+(a) 5.91%+ 0.63%+(a)
1.00 4.77 111,741 0.55+(a)(b) 4.91+ 0.64+(a)
$1.00 2.95% $466,000 0.65%+(a) 5.81%+ 0.73%+(a)
1.00 4.81 370,000 0.65(a)(b) 4.81 0.74(a)
1.00 4.39 334,000 0.61+(a) 4.64+ 0.89+(a)
1.00 5.20 274,499 0.55 5.08 0.90
1.00 4.93 218,499 0.55+(a) 4.87+ 0.84+(a)
$1.00 2.87% $183,383 0.80%+(a) 5.66%+ 0.88%+(a)
1.00 4.52 171,521 0.80+(a)(b) 4.66+ 0.89+(a)
$1.00 2.66% $ 19,000 1.20%+(a) 5.26%+ 1.28%+(a)
1.00 3.53 10,000 1.20+(a)(b) 4.26+ 1.29+(a)
$1.00 2.61% $ 116 1.30%+(a) 5.16%+ 1.38%+(a)
1.00 1.86 108 1.30+(a)(b) 4.16+ 1.39+(a)
$1.00 2.61% $ 148 1.30%+(a) 5.16%+ 1.38%+(a)
1.00 1.26 746 1.30+(a)(b) 4.16+ 1.39+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 60
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET DIVIDENDS
VALUE NET FROM NET
BEGINNING INVESTMENT INVESTMENT
OF PERIOD INCOME/(LOSS) INCOME
----------------------------------------------
<S> <C> <C> <C>
MUNICIPAL RESERVES
CAPITAL CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0205 $(0.0205)
Year ended 3/31/2000........................................ 1.00 0.0329 (0.0329)
Period ended 3/31/1999*..................................... 1.00 0.0292 (0.0292)
Year ended 4/30/1998........................................ 1.00 0.0353 (0.0353)
Year ended 4/30/1997........................................ 1.00 0.0337 (0.0337)
Year ended 4/30/1996........................................ 1.00 0.0362 (0.0362)
Year ended 4/30/1995........................................ 1.00 0.0313 (0.0313)
TRUST CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0200 $(0.0200)
Period ended 3/31/2000**.................................... 1.00 0.0280 (0.0280)
LIQUIDITY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0198 $(0.0198)
Year ended 3/31/2000........................................ 1.00 0.0314 (0.0314)
Period ended 3/31/1999*..................................... 1.00 0.0278 (0.0278)
Year ended 4/30/1998........................................ 1.00 0.0341 (0.0341)
Year ended 4/30/1997........................................ 1.00 0.0323 (0.0323)
Year ended 4/30/1996........................................ 1.00 0.0347 (0.0347)
Year ended 4/30/1995........................................ 1.00 0.0304 (0.0304)
ADVISER CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0193 $(0.0193)
Year ended 3/31/2000........................................ 1.00 0.0304 (0.0304)
Period ended 3/31/1999*..................................... 1.00 0.0270 (0.0270)
Year ended 4/30/1998........................................ 1.00 0.0332 (0.0332)
Year ended 4/30/1997........................................ 1.00 0.0313 (0.0313)
Year ended 4/30/1996........................................ 1.00 0.0337 (0.0337)
Period ended 4/30/1995**.................................... 1.00 0.0199 (0.0199)
INVESTOR CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0188 $(0.0188)
Period ended 3/31/2000**.................................... 1.00 0.0287 (0.0287)
MARKET CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0183 $(0.0183)
Year ended 3/31/2000........................................ 1.00 0.0284 (0.0284)
Period ended 3/31/1999*..................................... 1.00 0.0254 (0.0254)
Year ended 4/30/1998........................................ 1.00 0.0318 (0.0318)
Period ended 4/30/1997**.................................... 1.00 0.0301 (0.0301)
DAILY CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0175 $(0.0175)
Period ended 3/31/2000**.................................... 1.00 0.0262 (0.0262)
SERVICE CLASS SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0155 $(0.0155)
Period ended 3/31/2000**.................................... 1.00 0.0048 (0.0048)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited)...................... $1.00 $0.0150 $(0.0150)
Period ended 3/31/2000**.................................... 1.00 0.0062 (0.0062)
</TABLE>
---------------
+ 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.
* Fiscal year end changed to March 31. Prior to this, the fiscal year end was
April 30.
** Municipal Reserves Trust Class, Adviser Class, Investor Class, Market
Class, Daily Class, Service Class and Investor B Shares commenced
operations on May 17, 1999, September 22, 1994, April 12, 1999, May 3,
1996, April 12, 1999, January 21, 2000 and December 27, 1999, respectively.
(b) The effect of interest expense on the operating expense ratio was 0.02%
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 61
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 2.07% $160,080 0.20%+ 4.08%+ 0.29%+
1.00 3.34 172,693 0.20 3.29 0.30
1.00 2.96 134,268 0.20+ 3.10+ 0.48+
1.00 3.61 74,251 0.20(b) 3.53 0.48
1.00 3.44 59,701 0.20 3.38 0.52
1.00 3.70 48,482 0.20 3.61 0.58
1.00 3.19 32,353 0.23 3.36 0.59
$1.00 2.02% $417,555 0.30%+ 3.98%+ 0.39%+
1.00 2.83 526,831 0.30+ 3.19+ 0.40+
$1.00 1.99% $ 59,689 0.35%+ 3.93%+ 1.14%+
1.00 3.18 89,050 0.35 3.14 1.15
1.00 2.81 68,393 0.35+ 2.95+ 1.33+
1.00 3.43 53,074 0.35(b) 3.38 1.33
1.00 3.29 54,677 0.35 3.23 0.67
1.00 3.52 6,734 0.35 3.46 0.73
1.00 3.09 2,591 0.33 3.26 0.69
$1.00 1.94% $ 99,061 0.45%+ 3.83%+ 0.54%+
1.00 3.08 77,511 0.45 3.04 0.55
1.00 2.73 55,434 0.45+ 2.85+ 0.73+
1.00 3.34 29,936 0.45(b) 3.28 0.73
1.00 3.19 7,296 0.45 3.13 0.77
1.00 3.43 55,511 0.45 3.36 0.83
1.00 2.02 64,123 0.48+ 3.11+ 0.84+
$1.00 1.89% $ 53,849 0.55%+ 3.73%+ 0.64%+
1.00 2.90 64,782 0.55+ 2.94+ 0.65+
$1.00 1.84% $165,000 0.65%+ 3.63%+ 0.74%+
1.00 2.87 149,000 0.65 2.84 0.75
1.00 2.57 146,999 0.61+ 2.69+ 0.93+
1.00 3.24 92,000 0.55(b) 3.18 0.93
1.00 3.06 78,300 0.55+ 3.03+ 0.87+
$1.00 1.76% $464,015 0.80%+ 3.48%+ 0.89%+
1.00 2.65 429,644 0.80+ 2.69+ 0.90+
$1.00 1.56% $ 8,100 1.20%+ 3.08%+ 1.29%+
1.00 0.48 1,000 1.20+ 2.29+ 1.30+
$1.00 1.51% $ 92 1.30%+ 2.98%+ 1.39%+
1.00 0.62 91 1.30+ 2.19+ 1.40+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 62
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED AND DIVIDENDS
VALUE NET UNREALIZED FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS INCOME
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA TAX-EXEMPT RESERVES
TRUST CLASS SHARES
Six months ended 9/30/2000 (unaudited)................ $1.00 $0.0173 -- $(0.0173)
Period ended 3/31/2000**.............................. 1.00 0.0239 -- (0.0239)
ADVISER CLASS SHARES
Six months ended 9/30/2000 (unaudited)................ $1.00 $0.0166 -- $(0.0166)
Period ended 3/31/2000................................ 1.00 0.0232 -- (0.0232)
Period ended 5/14/1999*............................... 1.00 0.0052 -- (0.0052)
Year ended 2/28/1999.................................. 1.00 0.0268 -- (0.0268)
Year ended 2/28/1998.................................. 1.00 0.0309 -- (0.0309)
Year ended 2/28/1997.................................. 1.00 0.0291 -- (0.0291)
Year ended 2/29/1996.................................. 1.00 0.0331 $ 0.0001 (0.0331)
INVESTOR CLASS SHARES
Six months ended 9/30/2000 (unaudited)................ $1.00 $0.0161 -- $(0.0161)
Period ended 3/31/2000................................ 1.00 0.0223 -- (0.0223)
Period ended 5/14/1999*............................... 1.00 0.0051 -- (0.0051)
Year ended 2/28/1999.................................. 1.00 0.0261 -- (0.0261)
Year ended 2/28/1998.................................. 1.00 0.0302 -- (0.0302)
Year ended 2/28/1997.................................. 1.00 0.0284 -- (0.0284)
Year ended 2/29/1996.................................. 1.00 0.0324 $(0.0001) (0.0324)
DAILY CLASS SHARES
Six months ended 9/30/2000 (unaudited)................ $1.00 $0.0148 -- $(0.0148)
Period ended 3/31/2000................................ 1.00 0.0201 -- (0.0201)
Period ended 5/14/1999*............................... 1.00 0.0045 -- (0.0045)
Year ended 2/28/1999.................................. 1.00 0.0238 -- (0.0238)
Year ended 2/28/1998.................................. 1.00 0.0279 -- (0.0279)
Period ended 2/28/1997**.............................. 1.00 0.0107 -- (0.0107)
</TABLE>
---------------
+ 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.
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon California
Tax-Exempt Money Market Fund Horizon Service, S, X and Pacific Horizon
Shares, which were reorganized into the California Tax-Exempt Reserves
Adviser Class, Daily Class and Investor Class Shares, respectively, as of
May 21, 1999. Prior to May 21, 1999, the Fund's investment adviser was Bank
of America National Trust and Savings Association. Effective May 21, 1999,
its investment adviser became Banc of America Advisors, Inc. and its
investment sub-adviser became Banc of America Capital Management, Inc.
** California Tax-Exempt Reserves Trust Class and Daily Class Shares commenced
operations on May 24, 1999 and October 2, 1996, respectively.
(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%.
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 63
NATIONS RESERVES MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
NET ASSET END OF EXPENSES TO INCOME/(LOSS) TO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET AVERAGE NET AVERAGE
END OF PERIOD RETURN++ (000) ASSETS ASSETS NET ASSETS
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1.00 1.75% $345,038 0.20%+ 3.45%+ 0.37%+
1.00 2.41 394,837 0.30+ 2.70+ 0.38+
$1.00 1.67% $574,839 0.45%+ 3.20%+ 0.52%+
1.00 2.32 360,319 0.45+ 2.55+ 0.53+
1.00 0.52 636,000 0.50+ 2.49+ 0.52+
1.00 2.71 709,000 0.49(a) 2.65 0.49(a)
1.00 3.13 671,000 0.50(a) 3.06 0.50(a)
1.00 2.95 472,000 0.50(a) 2.92 0.50(a)
1.00 3.36 203,000 0.55(a) 3.43 0.55(a)
$1.00 1.62% $270,580 0.55%+ 3.10%+ 0.62%+
1.00 2.23 284,041 0.55+ 2.45+ 0.63+
1.00 0.50 503,000 0.58+ 2.43+ 0.62+
1.00 2.64 539,000 0.56(a) 2.61 0.59(a)
1.00 3.06 598,000 0.57(a) 3.01 0.60(a)
1.00 2.88 493,000 0.57(a) 2.83 0.60(a)
1.00 3.29 528,000 0.62(a) 3.35 0.63(a)
$1.00 1.49% $678,383 0.80%+ 2.85%+ 0.87%+
1.00 2.01 699,689 0.80+ 2.20+ 0.88+
1.00 0.45 334,000 0.80+ 2.21+ 0.82+
1.00 2.41 336,000 0.79(a) 2.35 0.79(a)
1.00 2.83 172,000 0.80(a) 2.80 0.80(a)
1.00 1.09 29,000 0.80+(a) 2.66+ 0.80+(a)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 64
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Reserves ("Reserves") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company. At
September 30, 2000, Reserves offered sixteen separate portfolios. These
financial statements pertain only to the six money market portfolios of
Reserves: Nations Cash Reserves, Nations Money Market Reserves, Nations Treasury
Reserves, Nations Government Reserves, Nations Municipal Reserves and Nations
California Tax-Exempt Reserves (each, a "Portfolio" and collectively, the
"Portfolios"). Financial Statements for the other portfolios of Reserves are
presented under separate cover. The Portfolios currently offer ten classes of
shares: Capital Class Shares, Trust Class Shares, Liquidity Class Shares,
Adviser Class Shares, Investor Class Shares, Market Class Shares, Daily Class
Shares, Service Class Shares, Investor B Shares and Investor C Shares.
Shareholders of a Portfolio have equal voting rights on matters affecting all
shareholders of the Portfolio. In addition, each class of shares of a Portfolio
has exclusive voting rights on matters that relate solely to that class and
separate voting rights on matters in which the interests of one class differ
from the interests of any other class.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America 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 Portfolios in the preparation of their financial statements.
Securities valuation: Securities are valued on the basis of amortized cost,
which approximates current market value. Amortized cost valuation involves
initially valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or accretion premium, as long as the
effect of fluctuating interest rates on the market value of the instrument is
not significant. Restricted securities and certain other assets may be valued
under procedures adopted by the Board of Trustees.
Repurchase agreements: Each Portfolio may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, a Portfolio
takes possession of an underlying debt obligation subject to an obligation of
the seller to repurchase, and the obligation of the Portfolio to resell, the
underlying debt obligation at an agreed-upon price and date, thereby determining
the yield during the Portfolio's holding period. This arrangement results in a
fixed rate of return that is not subject to market fluctuations during the
Portfolio's holding period. The value of the collateral is at least equal at all
times to the total amount of the repurchase obligations, including interest.
Generally, in the event of counterparty default, the Portfolio has the right to
use the collateral to offset losses incurred. There would be a potential loss to
the Portfolio in the event the Portfolio is delayed or prevented from exercising
its right to dispose of the collateral securities, including the risk of a
possible decline in the value of the underlying securities during the period the
Portfolio seeks to assert its right. The Portfolios' investment adviser and
sub-adviser, under the oversight of the Board of Trustees, monitor the value of
collateral received as well as the creditworthiness of those banks and dealers
with which the Portfolios enter into repurchase agreements to evaluate potential
risks.
Reverse repurchase agreements: Cash Reserves, Treasury Reserves and Government
Reserves may enter into reverse repurchase agreements with institutions that the
Portfolios' investment sub-adviser has determined are creditworthy. Under the
terms of a typical reverse repurchase agreement, a Portfolio sells securities
and agrees to repurchase them at a mutually agreed upon date and price. At the
time the Portfolio enters into a reverse repurchase agreement, it establishes a
segregated account with its custodian bank in which it will maintain cash, U.S.
Government securities or other appropriate liquid securities at least equal in
value to the Portfolio's obligations arising under the reverse repurchase
agreement. Reverse repurchase agreements involve the risk that the market value
of the securities purchased with the proceeds from the sale of securities
received by the Portfolio may decline below the price of the securities that the
Portfolio is obligated to repurchase. In the event the buyer of securities under
a reverse repurchase agreement files for bankruptcy or becomes insolvent, the
Fund's use of proceeds of the agreement may be restricted pending a
determination by the other party, or its trustee or receiver, whether to enforce
the Fund's obligation to repurchase the securities. Securities subject to
repurchase under reverse repurchase agreements are designated in the Statements
of net assets.
At September 30, 2000, Treasury Reserves had no reverse repurchase agreements
outstanding. The average daily balance of reverse repurchase agreements
outstanding for Treasury Reserves during the six months ended September 30, 2000
was $1,222,858,394. Cash Reserves and Government Reserves did not enter into any
60
<PAGE> 65
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
reverse repurchase agreements during the six months ended September 30, 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 calculated ratably, is
earned from settlement date and recorded on an accrual basis. Each Portfolio's
investment income and realized and unrealized gains and losses are allocated
among its share classes based upon the relative net assets of each class of
shares.
Dividends and distributions to shareholders: It is the policy of each Portfolio
to declare dividends from net investment income daily and to pay such dividends
monthly. Each Portfolio will distribute net realized short-term capital gains
annually after the fiscal year in which the capital gains were earned or more
frequently to seek to maintain a net asset value of $1.00 per share, unless
offset by any available capital loss carryforward. Income distributions and
capital gain distributions on a Portfolio level are determined in accordance
with federal income tax regulations which may differ from accounting principles
generally accepted in the United States of America.
Federal income tax: Each Portfolio intends to continue to qualify as a
regulated investment company by complying with the applicable requirements of
the Internal Revenue Code of 1986, as amended, and by distributing substantially
all of its earnings to its shareholders. Therefore, no provision is made for
federal income or excise taxes.
Expenses: General expenses of Reserves are allocated to the Portfolios based
upon their relative net assets or other expense allocation methodologies
determined by the nature of the expense. Expenses directly attributable to a
Portfolio or class of shares are charged to such Portfolio or class.
Cash flow information: Cash, as used in the Statement of cash flows, is the
amount reported in the Statements of net assets and represents cash on hand at a
Portfolio's custodian. Reserves issues and redeems shares, invests in
securities, and distributes dividends from net investment income and net capital
gains (which are either paid in cash or reinvested at the discretion of
shareholders). These activities are reported in the Statements of changes in net
assets. Information on cash payments is presented in the Statement of cash flows
for Treasury Reserves.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Reserves has entered into an investment advisory agreement (the "Investment
Advisory Agreement") with Banc of America Advisors, Inc. ("BAAI"), 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 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 0.15% of
each Portfolio's average daily net assets.
Reserves has entered into a sub-advisory agreement with BAAI and Banc of America
Capital Management, Inc. ("BACAP"), a wholly-owned subsidiary of Bank of
America, pursuant to which BACAP is entitled to receive a sub-advisory fee from
BAAI at the maximum annual rate of 0.033% of each Portfolio's average daily net
assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of Reserves.
Under the co-administration agreements, Stephens and BAAI are currently entitled
to receive a combined fee, computed daily and paid monthly, at the maximum
annual rate of 0.10% of each Portfolio's average daily net assets. The Bank of
New York ("BNY") serves as sub-administrator of Reserves pursuant to an
agreement with BAAI. For the six months ended September 30, 2000, Stephens and
BAAI earned 0.01% and 0.01%, respectively, of the Portfolio's average daily net
assets for their co-administration services.
BAAI and/or the sub-adviser and Stephens may, from time to time, reduce their
fees payable by each Portfolio. Effective August 1, 2000, BAAI and/or the
sub-adviser and Stephens agreed to reimburse expenses and/or waive their fees
until July 31, 2001 to the extent that total expenses (excluding shareholder
servicing and distribution fees) exceed an annual rate of 0.20% of each
Portfolio's average daily net assets.
BNY serves as the custodian of Reserves' assets. For the six months ended
September 30, 2000, expenses of certain Portfolios were reduced by $27,534 under
expense offset arrangements with BNY. The 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
61
<PAGE> 66
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
arrangements. Municipal Reserves and California Tax-Exempt Reserves do not
participate in the expense offset arrangements.
No officer, director or employee of Bank of America, BAAI or BACAP, or any
affiliate thereof, receives any compensation from Reserves for serving as
Trustee or Officer of Reserves.
PFPC Inc. ("PFPC") serves as the transfer agent for the Portfolios' shares. Bank
of America serves as the sub-transfer agent for the Capital and Trust Class
Shares of the Portfolios. Stephens serves as distributor of the Portfolios'
shares.
Reserves eligible Trustees may participate in non-qualified deferred
compensation and retirement plans which may be terminated at any time. All
benefits provided under these plans are unfunded and any payments to plan
participants are paid solely out of the Portfolios' assets. Income earned on
each plan participant's deferral account is tied to the rate of return of the
eligible mutual funds selected by the participants or, if no funds are selected,
to the rate of return of the Nations Treasury Fund, a portfolio of Nations Fund,
Inc., another registered investment company in the Nations Funds family. The
expense for the deferred compensation and retirement plans is included in
"Trustees' fees and expenses" in the Statements of operations.
Certain other affiliated Nations Funds have made daily investments of cash
balances in Cash Reserves, pursuant to an exemptive order received from the
Securities and Exchange Commission. At September 30, 2000, approximately 0.03%
of the net assets of the Cash Reserves was held by other affiliated Nations
Funds.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
Reserves has adopted distribution plans pursuant to Rule 12b-1 under the 1940
Act for Liquidity Class Shares ("Liquidity Class Shares Plan"), Market Class
Shares ("Market Class Shares Plan"), Daily Class Shares ("Daily Class Shares
Plan"), Investor Class Shares ("Investor Class Shares Plan"), Investor B Shares
("Investor B Shares Plan"), Investor C Shares ("Investor C Shares Plan") and
Service Class Shares ("Service Class Shares Plan") of the Portfolios. Under the
Liquidity Class Shares Plan, Reserves may reimburse Stephens for actual expenses
incurred by Stephens in connection with its distribution efforts up to 0.30% of
the average daily net assets of the Liquidity Class Shares of the Portfolios.
Under the Market Class Shares Plan, Reserves may compensate or reimburse
Stephens for distribution activities or expenses up to 0.20% of the average
daily net assets of the Market Class Shares of the Portfolios. Under the Daily
Class Shares Plan, Reserves may reimburse Stephens for actual expenses incurred
by Stephens in connection with its distribution efforts up to 0.35% of the
average daily net assets of the Daily Class Shares of the Portfolios. Under the
Investor Class Shares Plan, Reserves may reimburse Stephens for actual expenses
incurred by Stephens in connection with its distribution efforts up to 0.10% of
the average daily net assets of the Investor Class Shares of the Portfolios.
Under the Investor B Shares Plan, Investor C Shares Plan and Service Class
Shares Plan, Reserves may reimburse Stephens for actual expenses incurred by
Stephens in connection with its distribution efforts up to 0.75% of the average
daily net assets of the Service Class Shares, Investor B Shares, Investor C
Shares of the Portfolios, respectively.
Currently, Reserves is not reimbursing Stephens for distribution expenses for
Liquidity Class Shares. Unreimbursed expenses incurred by Stephens in a given
year may not be recovered by Stephens in subsequent years.
In addition, the Liquidity Class Shares Plan permits Reserves to pay Stephens an
annual fee of up to 0.30% of the average daily net assets of the Liquidity Class
Shares of the Cash Reserves, Money Market Reserves, Government Reserves,
Municipal Reserves and California Tax-Exempt Reserves and 0.35% of the average
daily net assets of Treasury Reserves. Stephens may use this fee to compensate
certain financial institutions, with which it has entered into servicing and/or
distribution agreements, that provide administrative and/or distribution
services to Liquidity Class shareholders. Currently, Reserves is not
compensating Stephens for providing such services.
Reserves also has adopted shareholder servicing plans ("Servicing Plans") for
the Liquidity, Adviser, Market, Daily, Investor, Investor B, Investor C and
Service Class Shares of the Portfolios. Under the Servicing Plans, a Portfolio
may pay servicing agents that have entered into a shareholder servicing
agreement with Reserves for certain shareholder support services that are
provided by the servicing agents to holders of the classes' shares. Payments
under the Servicing Plans will not exceed 0.25%, on an annualized basis, of the
average daily net assets of the classes' shares and are charged as expenses of
each Portfolio directly to the applicable class.
Reserves also has adopted shareholder administration plans ("Administration
Plans") for the Investor B,
62
<PAGE> 67
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Investor C and Trust Class Shares of the Portfolios. Under the Administration
Plans, a Portfolio may pay servicing agents that have entered into a shareholder
servicing agreement with Reserves for certain shareholder support services that
are provided by the servicing agents to holders of the classes' shares. Payments
under the Administration Plans will not exceed 0.10%, on an annualized basis, of
the average daily net assets of the classes' shares and are charged as expenses
of each Portfolio directly to the applicable class. At September 30, 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>
DISTRIBUTION PLAN:
Liquidity Class:
Treasury Reserves.................. 0.00% 0.65%
Other Funds........................ 0.00% 0.60%
Investor Class...................... 0.10% 0.10%
Market Class........................ 0.20% 0.20%
Daily Class......................... 0.35% 0.35%
Service Class, Investor B and
Investor C Shares................. 0.75% 0.75%
SHAREHOLDER SERVICING PLAN:
Liquidity Class..................... 0.15% 0.25%
Adviser, Investor, Market, Daily,
Service Class, Investor B and
Investor C Shares................. 0.25% 0.25%
SHAREHOLDER ADMINISTRATION PLAN:
Trust Class, Investor B and Investor
C Shares.......................... 0.10% 0.10%
</TABLE>
A substantial portion of the expenses incurred pursuant to these plans is paid
to affiliates of Bank of America and BAAI.
4. SHARES OF BENEFICIAL INTEREST
At September 30, 2000, an unlimited number of shares of beneficial interest
without par value was authorized for Reserves. Reserves' Declaration of Trust
authorizes the Board of Trustees to classify or reclassify any authorized, but
unissued shares into one or more additional classes or series of shares. See
Schedules of capital stock activity.
5. RESTRICTED SECURITIES
Certain securities may be subject to legal restrictions and may be difficult to
sell. No Portfolio will invest more than 10% of the value of its net assets in
securities that are considered illiquid.
The following securities are considered both illiquid and restricted as to
resale. Accordingly, they are valued at their fair value under procedures
adopted by the Board of Trustees.
63
<PAGE> 68
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
CASH RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Allstate Life Insurance Company
6.714%+ 10/01/00++....................... 11/01/99 $ 25,000 $1.00 $ 25,000 0.1% $ 25,000
6.714%+ 10/01/00++....................... 12/01/99 25,000 1.00 25,000 0.1 25,000
First Allmerica Financial Life Insurance
Company:
6.960%+ 10/02/00++....................... 02/25/99 50,000 1.00 50,000 0.1 50,000
6.770%+ 11/15/00++....................... 05/14/98 50,000 1.00 50,000 0.1 50,000
6.780%+ 12/22/00++....................... 09/22/98 50,000 1.00 50,000 0.1 50,000
GE Life and Annuity Assurance Company:
6.599%+ 10/01/00++....................... 02/28/99 25,000 1.00 25,000 0.1 25,000
6.599%+ 10/01/00++....................... 09/01/00 50,000 1.00 50,000 0.1 50,000
Goldman Sachs Group, Inc.:
6.740% 10/10/00.......................... 07/11/00 250,000 1.00 250,000 0.6 250,000
6.990% 12/11/00.......................... 06/13/00 400,000 1.00 400,000 0.9 400,000
6.840% 02/15/01.......................... 08/16/00 200,000 1.00 200,000 0.5 200,000
6.800% 02/27/01.......................... 09/01/00 150,000 1.00 150,000 0.4 150,000
6.830% 06/04/01.......................... 09/07/00 150,000 1.00 150,000 0.4 150,000
Jackson National Life Insurance Company:
6.750%+ 10/02/00++....................... 06/14/96 50,000 1.00 50,000 0.1 50,000
6.880%+ 10/02/00++....................... 12/27/99 50,000 1.00 50,000 0.1 50,000
New York Life Insurance Company:
6.899%+ 11/15/00......................... 11/15/99 150,000 1.00 150,000 0.4 150,000
Security Life of Denver Insurance Company:
6.879%+ 10/26/00++....................... 07/26/00 60,000 1.00 60,000 0.1 60,000
Transamerica Occidental Life Insurance
Company:
6.870%+ 10/02/00++....................... 07/31/00 117,000 1.00 117,000 0.3 117,000
6.880%+ 10/02/00++....................... 07/31/00 125,000 1.00 125,000 0.3 125,000
6.840%+ 11/01/00++....................... 07/31/00 20,000 1.00 20,000 0.0* 20,000
</TABLE>
---------------
* Amount represents less than 0.1%.
+ Floating rate security. The interest rate shown reflects the rate in effect
at September 30, 2000.
++ Reset date.
MONEY MARKET RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Goldman Sachs Group, Inc.:
6.840% 02/15/01.......................... 08/16/00 $ 25,000 $1.00 $ 25,000 0.4% $ 25,000
6.800% 02/27/01.......................... 09/01/00 25,000 1.00 25,000 0.4 25,000
6.830% 06/04/01.......................... 09/07/00 75,000 1.00 75,000 1.1 75,000
</TABLE>
64
<PAGE> 69
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
MUNICIPAL RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Bristol, Tennessee Health and Education
Facilities Revenue, Series 1995A, (FGIC
Insured, Citibank SBPA),
5.650%+ 02/28/14......................... 05/18/98 $ 8,500 $1.00 $ 8,500 0.6% $ 8,500
Intermountain Power Agency Municipal Trust
Receipts Power Supply Revenue, Series
1996CMC-4, (FSA Insured, Chase Manhattan
SBPA),
5.650%+ 07/01/03......................... 05/18/98 9,900 1.00 9,900 0.7 9,900
Memphis, Tennessee Center City Revenue
Finance Corporation Multi-Family Housing
Revenue, (Riverset Apartments Project)
Series 1998PT-1019, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
5.820%+ 10/01/19......................... 02/02/00 7,420 1.00 7,420 0.5 7,420
New York State Dormitory Authority Revenue,
Series 1998PT-1066, (AMBAC Insured,
Merrill Lynch SBPA),
4.550%+ 07/01/23......................... 04/18/00 38,990 1.00 38,990 2.7 38,990
Palm Beach County, Florida Multi-Family
Housing Finance Authority, Revenue,
(Clear Lake Colony Apartments Project)
Series 2000PA-1240, (Merrill Lynch
Guarantee, Merrill Lynch SBPA),
5.770%+ 09/15/02......................... 09/01/00 8,160 1.00 8,160 0.6 8,160
South Carolina Jobs Economic Development
Authority Revenue, (St Francis
Hospital -- Bon Secours Project) Series
1999PT-328, (Merrill Lynch Guarantee,
Merrill Lynch SBPA),
5.770%+ 01/01/01......................... 02/03/00 30,000 1.00 30,000 2.1 30,000
Virginia Beach, Virginia Development
Authority Multi-Family Housing Revenue,
(Briarwood Apartments Project) Series
1999PT-1146, (Merrill Lynch Guarantee,
Merrill Lynch SBPA),
5.770%+ 04/01/23......................... 10/15/99 13,080 1.00 13,080 0.9 13,080
</TABLE>
---------------
+ Variable rate demand note. The interest rate shown reflects the rate in effect
at September 30, 2000.
CALIFORNIA TAX-EXEMPT RESERVES
<TABLE>
<CAPTION>
FAIR PERCENTAGE HISTORICAL
PAR VALUE VALUE VALUE OF NET COST
ACQUISITION 9/30/00 PER UNIT 9/30/00 ASSETS 9/30/00
SECURITY DATE (000) 9/30/00 (000) 9/30/00 (000)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
California GO,
4.820%+ 04/01/04......................... 07/17/00 $ 15,100 $1.00 $ 15,100 0.8% $ 15,100
</TABLE>
---------------
+ Variable rate demand note. The interest rate shown reflects the rate in effect
at September 30, 2000.
65
<PAGE> 70
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
6. LINES OF CREDIT
Reserves 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 a
specified Federal Funds rate plus 0.50% on an annualized basis. Each
participating Portfolio maintains a ratio of no less than 4 to 1 net assets (not
including amounts borrowed pursuant to the Agreement) to aggregate amount of
indebtedness pursuant to the Agreement.
For the six months ended September 30, 2000, borrowings by the Portfolios under
the Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
PORTFOLIO (000) RATE
---------------------------------------------------------
<S> <C> <C>
Cash Reserves.................... $1,007 6.81%
Money Market Reserves............ 422 6.94
Treasury Reserves................ 74 6.98
</TABLE>
The average amount outstanding was calculated based on daily balances during the
period.
Reserves 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 Portfolio pays its pro rata share. This fee is
paid quarterly in arrears. Each participating Portfolio is required to maintain
an asset coverage ratio of at least 300% under the terms of the arrangement. For
the six months ended September 30, 2000, there were no borrowings by the
Portfolios under the committed line of credit.
7. CAPITAL LOSS CARRYFORWARD
At March 31, 2000, the Portfolios had available for federal income tax purposes
the following unused capital losses expiring March 31:
<TABLE>
<CAPTION>
2001 2002 2003 2004 2005 2006 2007 2008
(000) (000) (000) (000) (000) (000) (000) (000)
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Reserves............................................... -- $2,581 -- -- -- -- $17 --
Treasury Reserves........................................... $11 9 $ 3 $39 $54 $26 2 --
Government Reserves......................................... -- 607 -- -- -- 20 36 --
Municipal Reserves.......................................... 66 19 38 31 15 18 1 --
California Tax-Exempt Reserves.............................. -- -- 4 -- 52 --* -- $87
</TABLE>
---------------
* Amount represents less than $500.
At March 31, 2000, the following Portfolios utilized capital losses during the
period as follows:
<TABLE>
<CAPTION>
CAPITAL
LOSSES UTILIZED
PORTFOLIO (000)
---------------------------------------------------------
<S> <C>
Cash Reserves......................... $ 2
Money Market Reserves................. 13
Treasury Reserves..................... 2
Municipal Reserves.................... 5
</TABLE>
Under current tax law, capital 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, the following Portfolios elected to defer
losses occurring between November 1, 1999 and March 31, 2000, under these rules:
<TABLE>
<CAPTION>
POST-OCTOBER
CAPITAL LOSSES
DEFERRED
PORTFOLIO (000)
---------------------------------------------------------
<S> <C>
Cash Reserves......................... $3
Government Reserves................... 4
</TABLE>
66
<PAGE> 71
NATIONS RESERVES MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
8. REORGANIZATIONS
ACQUISITION OF THE PACIFIC HORIZON FUNDS
On May 14, 1999, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets and liabilities of the Pacific Horizon Funds, also listed
below (each an "Acquired Fund"), in a tax-free reorganization in exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by
each Acquired Fund's shareholders. The number and value of shares issued by the
Acquiring Fund are presented in the Schedules of capital stock activity. Net
assets and unrealized appreciation as of the reorganization date were as
follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS OF
TOTAL NET ASSETS OF TOTAL NET ASSETS OF ACQUIRING FUND
ACQUIRED FUND ACQUIRING FUND AFTER ACQUISITION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Reserves Pacific Horizon Prime Fund $13,963,107 $9,973,934 $23,937,041
Treasury Reserves Pacific Horizon Treasury Fund 3,144,071 2,533,049 5,677,120
Government Reserves Pacific Horizon Government Fund 471,810 759,789 1,231,599
Government Reserves Pacific Horizon Treasury Only
Fund 423,864 759,789 1,183,653
Municipal Reserves Horizon Tax Exempt Fund 754,048 380,361 1,134,409
</TABLE>
On May 21, 1999, California Tax-Exempt Reserves, a newly established portfolio,
acquired the assets and liabilities of the Pacific Horizon California Tax-Exempt
Money Market Fund pursuant to a plan of reorganization approved by its
shareholders. The acquisition was accomplished by a tax-free exchange of shares
of California Tax-Exempt Reserves in an amount equal to the outstanding shares
of the Pacific Horizon California Tax-Exempt Money Market Fund. The financial
statements of the California Tax-Exempt Reserves reflect the historical
financial results of the Pacific Horizon California Tax-Exempt Money Market Fund
prior to the reorganization.
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS
--------------------------------------------------------------------------
<S> <C>
California Tax-Exempt Money Market Nations California Tax-Exempt Reserves
Horizon Service Shares Adviser Class Shares
Pacific Horizon Shares Investor Class Shares
S Shares Daily Class Shares
X Shares Daily Class Shares
</TABLE>
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P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.626.2275 (Institutional Investors)
Toll free 1.800.321.7854 (Individual Investors)
NATIONS FUNDS
RESERVESSAR (9/00)
