<PAGE> 1
[GRAPHIC: PHOTO OF TRAFFIC CLOVERLEAF] Nations Short-Term
Municipal Income Fund
Nations Intermediate
Municipal Bond Fund
Nations Municipal
Income Fund
Nations CA Municipal
Bond Fund
Nations FL Intermediate
Municipal Bond Fund
Nations FL Municipal
Bond Fund
Nations GA Intermediate
Municipal Bond Fund
Nations GA Municipal
Bond Fund
Nations KS Municipal
Income Fund
Nations MD Intermediate
Municipal Bond Fund
Nations MD Municipal
Bond Fund
Nations NC Intermediate
Municipal Bond Fund
Nations NC Municipal
Bond Fund
Nations SC Intermediate
Municipal Bond Fund
Nations SC Municipal
Bond Fund
Nations TN Intermediate
Municipal Bond Fund
Nations TN Municipal
Bond Fund
Nations TX Intermediate
Municipal Bond Fund
Nations TX Municipal
Bond Fund
Nations VA Intermediate
Municipal Bond Fund
Nations VA Municipal
Bond Fund
MUNICIPAL
BOND FUNDS
SEMIANNUAL REPORT FOR THE PERIOD
ENDED SEPTEMBER 30, 2000
[NATIONS FUNDS LOGO]
<PAGE> 2
This Report is submitted for the general information of shareholders of Nations
Funds. This material must be preceded or accompanied by a current Nations Funds
prospectus.
Nations Funds distributor: Stephens Inc., which is not affiliated with Bank of
America N.A., is not a bank, and securities offered by it are not guaranteed by
any bank or insured by the FDIC. Stephens Inc., member NYSE, SIPC.
Nations Funds Investment adviser: Banc of America Advisors, Inc.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 3
PRESIDENTS' MESSAGE
Dear Shareholder:
The six-month period ended September 30, 2000 proved
to be quite unsettling for mutual fund investors.
Several factors led to turbulence in U.S. and
overseas markets. The Federal Reserve Board's
practice of increasing interest rates in an attempt
to slow down the economy and keep inflation at bay
took a toll on the stock market. Oil prices soared
over the summer causing concern across the country as
several cities saw gas prices above $2.00 per gallon.
The slowing economy affected earnings at a number of
leading U.S. companies, causing additional volatility
in the stock market. Overseas, the European Central
Bank raised interest rates in August -- the fifth
rate hike this year -- and the euro fell to a record
low. In Japan, the Bank of Japan increased interest
rates for the first time in a decade, adding
additional strain to an economy that has struggled
over the last several years.
The only seemingly bright spot for investors during
the past six months has been in the bond market.
Because of the federal government's budget surplus,
the U.S. Treasury has had to buy back many of its
long-term securities. The shortage in long-term
securities has generally increased returns on these
securities, resulting in an inversion of the yield
curve -- whereby short-term securities are yielding
more than many longer-term securities. This is the
first time in a long time that most bond sectors have
outperformed both the Standard & Poor's 500 Composite
Stock Price Index and the Nasdaq Composite Index*.
Now, you're probably asking yourself "Is this a good
time to invest in stocks or bonds?" We think the
answer is "Yes." While stocks of all sizes have
historically outperformed bonds over the long-term,
and bonds have performed well this year, a broadly
diversified portfolio -- one consisting of both
stocks and bonds -- can help you weather market
volatility. Remember that the financial markets tend
to be cyclical and while one asset class or
investment style may be the flavor of the month, it
could be out of favor the next.
It's also important to note that volatility tends to
keep some investors on the sidelines. But waiting for
the right time to invest may result in missed
opportunities. Disciplined investing requires staying
invested through market highs and lows. Investors can
also take advantage of dollar cost averaging** during
volatile times -- the practice of systematic
investing where you seek to buy more shares when
prices are low and fewer shares when prices are high,
resulting in a lower average share price over time.
Remaining invested and regularly investing is key.
Whether it's growth vs. value, large cap vs. small
cap, stocks vs. bonds, or U.S. vs. international, no
single investment style alone will assure that you
achieve your long-term financial goals. We believe
diversification is the key to long-term success and
an investment professional can help you create a
portfolio best suited to your risk tolerance and
investment time horizon.
*The Standard & Poor's 500 Composite Stock Price
Index is an unmanaged index of 500 widely held
common stocks. It is unavailable for investment. The
Nasdaq Composite Index tracks the performance of
domestic common stocks traded on the regular Nasdaq
market as National Market System traded foreign
stocks and ADRs. It is unmanaged and unavailable for
investment.
**Dollar cost averaging does not ensure a profit or
protect against a loss in a declining market. You
should carefully consider your ability to make
regular investments through periods of fluctuating
market conditions.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE> 4
PRESIDENTS' MESSAGE CONTINUED...
At Nations Funds, we strongly believe in the value of
advice. An investment professional can provide you
with market research and analysis, years of
investment experience, and work with you to determine
the best strategy for surviving short-term volatility
and successfully reaching your long-term goals.
We remain committed to providing you with world-class
investment management and competitive products to
help you reach your long-term goals. Should you have
any questions or comments on your semiannual report,
please contact your investment professional or call
us at 1.800.321.7854. You can also visit us online at
www.nations-funds.com.
Thank you for being a part of the Nations Funds
family.
Sincerely,
/s/ A. Max Walker
A. MAX WALKER
PRESIDENT AND CHAIRMAN OF THE BOARD
NATIONS FUNDS
/s/ Robert H. Gordon
ROBERT H. GORDON
PRESIDENT
BANC OF AMERICA ADVISORS, INC.
September 30, 2000
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<S> <C>
NATIONS FUNDS SPECTRUM 2
FINANCIAL STATEMENTS
Statements of net assets
Nations Short-Term Municipal Income Fund 3
Nations Intermediate Municipal Bond Fund 8
Nations Municipal Income Fund 27
Nations CA Municipal Bond Fund 44
Nations FL Intermediate Municipal Bond Fund 49
Nations FL Municipal Bond Fund 56
Nations GA Intermediate Municipal Bond Fund 60
Nations GA Municipal Bond Fund 65
Nations KS Municipal Income Fund 68
Nations MD Intermediate Municipal Bond Fund 75
Nations MD Municipal Bond Fund 82
Nations NC Intermediate Municipal Bond Fund 86
Nations NC Municipal Bond Fund 93
Nations SC Intermediate Municipal Bond Fund 96
Nations SC Municipal Bond Fund 103
Nations TN Intermediate Municipal Bond Fund 106
Nations TN Municipal Bond Fund 110
Nations TX Intermediate Municipal Bond Fund 113
Nations TX Municipal Bond Fund 119
Nations VA Intermediate Municipal Bond Fund 121
Nations VA Municipal Bond Fund 129
Statements of operations 134
Statements of changes in net assets 138
Schedules of capital stock activity 146
Financial highlights 168
Notes to financial statements 210
</TABLE>
<TABLE>
<S> <C>
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NATIONS FUNDS [DALBAR LOGO]
RECOGNIZED FOR
OUTSTANDING DALBAR, Inc., is a well-respected
CUSTOMER SERVICE research firm that measures
customer service levels and
IN RECOGNITION OF ITS COMMITMENT TO establishes benchmarks in the
PROVIDE SHAREHOLDERS WITH THE financial services industry.
HIGHEST LEVEL OF CUSTOMER SERVICE
IN THE MUTUAL FUND INDUSTRY,
NATIONS FUNDS RECEIVED THE DALBAR
MUTUAL FUND SERVICE AWARD IN 1999.
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</TABLE>
<PAGE> 6
THE NATIONS FUNDS FAMILY OF FUNDS
LOWER RISK/REWARD POTENTIAL
MONEY MARKET FUNDS
Nations Prime Fund
Nations Cash Reserves
Nations Money Market Reserves
Nations Government Money Market Fund
Nations Government Reserves
Nations Treasury Fund
Nations Treasury Reserves
Nations Tax Exempt Fund
Nations Municipal Reserves
Nations California Tax-Exempt Reserves
FIXED INCOME FUNDS
INCOME FUNDS
Nations High Yield Bond Fund
Nations Strategic Income Fund
Nations U.S. Government Bond Fund
Nations Government Securities Fund
Nations Bond Fund
Nations Intermediate Bond Fund
Nations Short-Intermediate Government Fund
Nations Short-Term Income Fund
TAX-EXEMPT INCOME FUNDS
Nations Municipal Income Fund
Nations State-Specific Long-Term Municipal
Bond Funds (CA, FL, GA, KS,
MD, NC, SC, TN, TX, VA)
Nations Intermediate Municipal Bond Fund
Nations State-Specific Intermediate Municipal
Bond Funds (FL, GA, MD,
NC, SC, TN, TX, VA)
Nations Short-Term Municipal Income Fund
DOMESTIC EQUITY FUNDS
GROWTH FUNDS
Nations Small Company Fund
Nations Marsico 21st Century Fund
Nations MidCap Growth Fund
Nations Marsico Focused Equities Fund
Nations Aggressive Growth Fund
Nations Capital Growth Fund
Nations Strategic Growth Fund
Nations Blue Chip Fund
GROWTH AND INCOME FUNDS
Nations Marsico Growth & Income Fund
Nations Value Fund
Nations Equity Income Fund
Nations Asset Allocation Fund
Nations Balanced Assets Fund
Nations Convertible Securities Fund
INTERNATIONAL FUNDS
Nations Emerging Markets Fund
Nations Marsico International Opportunities Fund
Nations International Equity Fund
Nations International Value Fund
HIGHER RISK/REWARD POTENTIAL
INDEX FUNDS
Nations Managed Index Fund
Nations LargeCap Index Fund
Nations MidCap Index Fund
Nations SmallCap Index Fund
ASSET ALLOCATION PORTFOLIOS
Nations LifeGoal Balanced Growth Portfolio
Nations LifeGoal Growth Portfolio
Nations LifeGoal Income and Growth Portfolio
2
<PAGE> 7
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 96.8%
ALABAMA -- 0.9%
$ 1,175 Alabama, Special Care
Facilities Financing
Authority, Hospital
Revenue, (Charity
Obligation Group
Project) Series A,
3.750% 11/01/01........ Aaa NR $ 1,164
--------
ALASKA -- 0.8%
1,000 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1995A, AMT, (AMBAC
Insured),
5.250% 07/01/03........ Aaa AAA 1,012
--------
ARIZONA -- 3.3%
3,000 Glendale, Arizona, Water
and Sewer Revenue,
Series 2000, (FGIC
Insured),
4.750% 07/01/02........ Aaa AAA 3,016
1,035 Maricopa County, Arizona,
Unified School District
Number 48, GO
Refunding, Series
1991B,
6.300% 07/01/04........ Aa2 AA 1,099
--------
4,115
--------
CALIFORNIA -- 1.7%
2,015 Riverside County,
California, Asset
Leasing Corporation
Leasehold Revenue,
Series 1993C,
7.940% 06/01/19........ Aa3 AA- 2,057
--------
DISTRICT OF COLUMBIA
-- 1.7%
2,200 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1992A, (MBIA Insured),
6.500% 10/01/05........ Aaa AAA 2,312
2,085 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1997B, AMT, (FGIC
Insured),
5.750% 10/01/03........ Aaa AAA 2,147
--------
4,459
--------
FLORIDA -- 3.4%
4,250 Pinellas County, Florida,
Capital Improvement
Revenue, Series 2000,
4.500% 01/01/06........ Aa3 NR 4,229
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- 5.9%
$ 3,600 Atlanta, Georgia, Urban
Residential Finance
Authority, College
Facilities Revenue,
(Morris Brown College
Project) Series 1991,
Prerefunded 10/01/05 @
100,
9.500% 12/01/11........ Aaa NR $ 3,906
1,775 Georgia State, GO, Series
1992B,
5.750% 03/01/02........ Aaa AAA 1,808
1,500 Georgia, Medical Center
Hospital Authority,
Revenue, Unrefunded
Balance, Series 1992C,
(MBIA Insured),
6.400% 08/01/06........ Aaa AAA 1,570
--------
7,284
--------
ILLINOIS -- 2.6%
1,020 Broadview, Illinois, Tax
Increment Revenue,
Series 1999,
4.300% 07/01/01........ NR NR 1,014
1,260 Broadview, Illinois, Tax
Increment Revenue,
Series 1999,
4.750% 07/01/05........ NR NR 1,221
1,000 Chicago, Illinois, O'Hare
International Airport,
General Airport
Revenue, Second Lien,
Series 1996A, AMT,
(AMBAC Insured),
5.000% 01/01/02........ Aaa AAA 1,004
--------
3,239
--------
INDIANA -- 1.8%
2,205 Fremont, Indiana, Middle
School Building
Corporation, Revenue
Refunding, Series
1994A, (AMBAC Insured),
4.650% 07/15/04........ Aaa AAA 2,203
--------
KENTUCKY -- 1.1%
1,325 Kentucky, Asset/Liability
Commission, University
and College
Improvements General
Fund Revenue, Series
1999-1,
3.500% 03/01/01........ Aa3 AA- 1,318
--------
LOUISIANA -- 1.6%
2,000 De Soto Parish,
Louisiana, PCR
Refunding,
(International Paper
Company Project) Series
1993A,
5.050% 12/01/02........ Baa1 BBB+ 2,004
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MAINE -- 2.7%
$ 3,500 Baileyville, Maine, PCR,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.750% 06/01/05........ Baa2 NR $ 3,415
--------
MASSACHUSETTS -- 1.4%
1,645 Massachusetts State,
Industrial Financing
Agency Revenue, Series
1994,
7.100% 11/15/18........ Aaa AAA 1,796
--------
MICHIGAN -- 3.9%
1,000 Detroit, Michigan, GO,
Series 1995A,
5.600% 05/01/01........ NR BBB+ 1,005
1,000 Kent County, Michigan,
Airport Facilities
Revenue, (Kent County
International Airport
Project) Series 1995,
AMT, Prerefunded
01/01/05 @ 102,
6.100% 01/01/25........ Aaa AAA 1,066
1,000 Michigan State, Hospital
Finance Authority,
Revenue, (Ascension
Health Credit Project)
Series 1999B, Mandatory
Put 11/15/05 @ 100,
5.200% 11/15/33........ Aa2 AA 996
1,800 Michigan State, Hospital
Finance Authority,
Revenue, Mandatory Put
11/15/06 @ 100,
5.300% 11/15/33........ Aa2 AA 1,793
--------
4,860
--------
MINNESOTA -- 1.8%
2,235 Minneapolis and St. Paul,
Minnesota, Metropolitan
Apartment Community, GO
Refunding, Series
1998-13, AMT,
5.000% 01/01/04........ Aaa AAA 2,261
--------
MISSISSIPPI -- 4.0%
5,000 Lawrence County,
Mississippi, PCR,
(Georgia-Pacific
Corporation Project)
Series 1998,
4.300% 12/01/00........ Baa2 NR 4,995
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSOURI -- 0.8%
$ 1,000 Missouri State,
Environmental
Improvement and Energy
Resource Authority, PCR
Refunding, (Associated
Electrical
Cooperation - Thomas
Hill Project) Series
1996,
5.750% 12/01/02........ A1 AA $ 1,026
--------
NEW JERSEY -- 5.0%
1,985 New Jersey, Financing
Authority, Health Care
Facilities Revenue,
(Riverwood Center Inc.
Project) Series 1991A,
(FSA Insured),
Prerefunded 07/01/01 @
102,
9.900% 07/01/21........ Aaa AAA 2,103
4,000 New Jersey, Health Care
Facilities Funding
Authority, Revenue
Refunding, Series
1991A, (FHA Insured),
Prerefunded 02/01/01 @
102,
6.800% 08/01/19........ Aa2 NR 4,110
--------
6,213
--------
NORTH CAROLINA -- 4.1%
1,000 Durham, North Carolina,
GO Refunding, Series
1992,
5.700% 02/01/05........ Aaa AAA 1,029
1,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.300% 08/15/02........ Baa1 NR 984
1,560 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.300% 08/15/03........ Baa1 NR 1,512
1,630 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.400% 08/15/04........ Baa1 NR 1,561
--------
5,086
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 9
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO -- 4.4%
$ 2,015 Akron/Bath/Copley, Ohio,
Joint Township Hospital
District, Revenue,
(Summa Health Systems
Project) Series 1993A,
5.750% 11/15/08........ Baa1 NR $ 1,947
3,480 Ohio, Housing Financing
Agency, Mortgage
Revenue, Series 2000D,
AMT, (GNMA COLL),
4.800% 09/01/02........ Aaa NR 3,486
--------
5,433
--------
OKLAHOMA -- 1.9%
2,385 Tulsa County, Oklahoma,
Independent School
District Number 001,
GO, Series 2000A,
5.000% 03/01/03........ Aa2 AA 2,409
--------
PENNSYLVANIA -- 6.8%
1,500 Allegheny County,
Pennsylvania, GO,
Series 1987C-34,
(MBIA-IBC Insured),
8.500% 02/15/02........ Aaa AAA 1,578
2,000 Delaware County,
Pennsylvania Authority,
Health Care Revenue,
Series 1993B,
Prerefunded 11/15/05 @
100,
6.000% 11/15/07........ Aaa NR 2,098
1,560 Greene County,
Pennsylvania,
Industrial Development
Authority, Revenue,
(Monongahela Power
Company Project) Series
1998B,
4.350% 02/01/02........ A2 A 1,549
2,200 Greene County,
Pennsylvania,
Industrial Development
Authority, Revenue,
(Potomac Edison Company
Project) Series 1998B,
4.350% 02/01/02........ A2 A 2,184
1,000 Monroeville,
Pennsylvania, Hospital
Authority, Revenue
Refunding, (Forbes
Health Systems -
Allegheny University
Medical Centers
Project) Series 1995,
5.125% 10/01/00........ CAa1 CCC 1,000
--------
8,409
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA -- 9.9%
$ 1,950 Aiken County, South
Carolina, Construction
School District, GO,
Series 2000, (SCSDE
Insured),
5.000% 04/01/02........ Aa1 AA+ $ 1,967
1,950 Aiken County, South
Carolina, Construction
School District, GO,
Series 2000, (SCSDE
Insured),
5.125% 04/01/03........ Aa1 AA+ 1,980
1,000 Berkeley County, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1991, (MBIA
Insured), Prerefunded
06/01/01 @ 102,
7.000% 06/01/16........ Aaa AAA 1,037
1,370 Greenville, South
Carolina, Hospital
System Authority,
Hospital Facilities
Revenue Refunding,
Series 1993C,
5.250% 05/01/03........ Aa3 AA 1,386
2,965 Richland County, South
Carolina, PCR
Refunding, (Union Camp
Corporation Project)
Series 1992C,
5.875% 11/01/02........ Baa1 BBB+ 3,025
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
5.750% 12/15/01........ Baa1 BBB 999
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
6.125% 12/15/02........ Baa1 BBB 1,004
1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
6.300% 12/15/03........ Baa1 BBB 1,005
--------
12,403
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 10
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- 3.4%
$ 2,100 McMinn County, Tennessee,
Industrial Development
Board, PCR Refunding,
(Bowater Inc. Project)
Series 1991,
6.850% 04/01/01........ Baa3 BBB $ 2,122
1,000 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue, (Federal
Express Corporation
Project), Series 1984,
7.875% 09/01/09........ Baa2 BBB 1,053
1,000 Tennessee State, Housing
Development Agency
Mortgage Finance
Authority, Revenue,
Series 1993A,
5.200% 01/01/02........ A1 AA 1,007
--------
4,182
--------
TEXAS -- 9.0%
935 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior Lien,
Series 1994A-2, AMT,
(GTD STD LNS),
5.850% 06/01/01........ Aaa NR 937
1,000 Central Texas, Higher
Education Authority,
Revenue Refunding,
Series 1993, AMT, (GTD
STD LNS),
5.200% 12/01/04........ Aaa NR 1,015
1,000 Clear Creek, Texas,
Independent School
District GO Refunding,
Series 1998, (PSF-GTD),
4.923%(+) 02/15/03..... Aaa AAA 893
2,500 Dallas-Fort Worth, Texas,
International Airport
Facilities Improvement,
Corporate Revenue
Refunding, (American
Airlines Project)
Series 2000A, AMT,
5.950% 05/01/29........ Baa1 BBB- 2,504
2,800 Richardson, Texas,
Independent School
District GO Refunding,
Series 1998, (PSF-GTD),
5.000% 02/15/03........ Aaa AAA 2,827
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,000 Texas State, College
Student Loan Authority,
Revenue, Series 1995,
AMT,
5.100% 08/01/01........ Aa1 AA $ 1,005
2,000 Texas State, College
Student Loan Authority,
Revenue, Series 1995,
AMT,
5.300% 08/01/03........ Aa1 AA 2,037
--------
11,218
--------
UTAH -- 1.9%
2,370 Jordan, Utah, School
District, GO, Series
1997, (SCH BD GTY),
5.000% 06/15/02........ NR AAA 2,392
--------
VIRGINIA -- 9.3%
3,260 Culpeper County,
Virginia, GO, Series
2000,
4.650% 09/01/02........ MIG1 SP1+ 3,261
1,000 Norfolk, Virginia, GO,
Series 1995,
5.250% 06/01/01........ A1 AA 1,006
3,350 Richmond, Virginia, GO,
Series 2000, (FSA
Insured),
5.125% 01/15/04........ Aaa AAA 3,410
1,475 Virginia, Education Loan
Authority, Guaranteed
Student Loan Revenue,
Series 1992G, AMT, (GTD
STD LNS),
6.625% 09/01/03........ Aaa NR 1,520
--------
9,197
--------
WASHINGTON -- 1.7%
1,990 Washington State, Public
Power Supply Systems
Revenue Refunding,
(Nuclear Project Number
1) Series 1991A,
6.600% 07/01/04........ Aa1 AA- 2,056
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $119,983)........................ 120,435
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 11
NATIONS FUNDS
Nations Short-Term Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 8.3%
(Cost $10,314)
10,314 Nations Municipal Reserves#........... $ 10,314
--------
TOTAL INVESTMENTS
(Cost $130,297*)............. 105.1% 130,749
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (5.1%)
Cash.................................. $ 1
Receivable for investment securities
sold................................ 160
Receivable for Fund shares sold....... 3
Interest receivable................... 1,834
Payable for Fund shares redeemed...... (167)
Investment advisory fee payable....... (4)
Administration fee payable............ (20)
Shareholder servicing and distribution
fees payable........................ (10)
Distributions payable................. (450)
Payable for investment securities
purchased........................... (7,605)
Accrued Trustees'/Directors' fees and
expenses............................ (25)
Accrued expenses and other
liabilities......................... (73)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (6,356)
--------
NET ASSETS..................... 100.0% $124,393
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 39
Accumulated net realized loss on
investments sold.................... (436)
Net unrealized appreciation of
investments......................... 452
Paid-in capital....................... 124,338
--------
NET ASSETS............................ $124,393
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($97,168,369 / 9,726,920 shares
outstanding)........................ $9.99
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($20,207,505 / 2,022,624
shares outstanding)................. $9.99
=====
Maximum sales charge.................. 1.00%
Maximum offering price per share...... $10.09
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,826,470 / 583,210 shares
outstanding)........................ $9.99
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,190,694 / 119,189 shares
outstanding)........................ $9.99
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $452 on
investment securities was comprised of gross appreciation of $739 and gross
depreciation of $287 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$130,297.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
Nations Short-Term Municipal Income Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 24.32%
Industrial Development Revenue/
Pollution Control Revenue 17.46%
Hospital Revenue 13.75%
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 12
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND
NOTES -- 98.4%
ALABAMA -- 2.3%
$ 3,265 Alabama, Special Care
Facilities Financing
Authority, Hospital
Revenue, (Charity
Obligation Group
Project) Series A,
(MBIA Insured,
Escrowed to
Maturity),
4.625% 11/01/10...... Aaa NR $ 3,146
2,500 Birmingham, Alabama,
Industrial Water
Board, Industrial
Water Supply Revenue,
Series 1978,
6.000% 07/01/07...... NR AAA 2,683
2,500 Birmingham, Alabama,
Revenue, (Baptist
Medical Center of
Birmingham Project)
Series 1993A, (MBIA
Insured),
5.500% 08/15/05...... Aaa AAA 2,575
9,240 Courtland, Alabama,
Industrial
Development Board,
Solid Waste Disposal
Revenue, (Champion
International
Corporation Project)
Series 1992,
7.000% 06/01/22...... Baa1 BBB+ 9,475
5,750 Courtland, Alabama,
Industrial
Development Board,
Solid Waste Disposal
Revenue, (Champion
International
Corporation Project)
Series 1993A, AMT,
6.375% 03/01/29...... Baa1 BBB+ 5,723
3,000 Prichard, Alabama,
Waterworks and Sewer
Board, Water and
Sewer Revenue
Refunding, Series
1994, (AMBAC
Insured),
5.650% 11/15/04...... Aaa AAA 3,116
----------
26,718
----------
ALASKA -- 1.4%
3,000 Alaska State, Housing
Finance Corporation,
Revenue, Series
1995A, (MBIA
Insured),
5.400% 06/01/08...... Aaa AAA 3,067
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ALASKA -- (CONTINUED)
$ 3,345 Alaska, Industrial
Development and
Export Authority,
Revenue Refunding,
Series 1998A, AMT,
(MBIA Insured),
5.250% 04/01/12...... Aaa AAA $ 3,317
3,280 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1995A, AMT, (AMBAC
Insured),
5.250% 07/01/03...... Aaa AAA 3,319
3,000 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1997A, AMT, (AMBAC
Insured),
5.150% 07/01/05...... Aaa AAA 3,034
1,250 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1997A, AMT, (AMBAC
Insured),
5.200% 07/01/06...... Aaa AAA 1,267
2,000 Anchorage, Alaska, GO,
Series 1996A, (AMBAC
Insured),
5.100% 08/01/07...... Aaa AAA 2,030
----------
16,034
----------
ARIZONA -- 0.6%
725 Maricopa County,
Arizona, Unified High
School District
Number 210, GO,
Series 1993F,
5.450% 07/01/08...... Aa AA 749
3,000 Mesa, Arizona, GO
Refunding, (MBIA
Insured),
5.000% 07/01/03...... Aaa AAA 3,042
2,125 Pima County, Arizona,
Unified School
District, GO, Series
1995G, (MBIA
Insured),
7.300% 07/01/05...... Aaa AAA 2,367
1,500 Salt River, Arizona,
Agricultural
Improvement and Power
District, Electric
Systems Revenue
Refunding, (Salt
River Project) Series
1993B,
5.050% 01/01/06...... Aa2 AA 1,527
----------
7,685
----------
ARKANSAS -- 1.5%
10,000 Arkansas State, GO,
Series 2000A,
5.500% 08/01/11...... Aa2 AA 10,450
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 13
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ARKANSAS -- (CONTINUED)
$ 7,000 Hot Springs, Arkansas,
IDR Refunding,
(Willamette
Industries Project)
Series 1991,
6.650% 12/01/02...... NR A- $ 7,241
----------
17,691
----------
CALIFORNIA -- 0.2%
2,000 California State, GO,
Series 1990,
7.000% 08/01/04...... Aa2 AA 2,189
----------
COLORADO -- 0.8%
1,500 Arapahoe County,
Colorado, School
District Number 005,
GO, Series 1990,
Prerefunded 12/15/00
@ 101,
7.000% 12/15/04...... Aa1 AA 1,523
10,000 Colorado, E-470 Public
Highway Authority,
Revenue, Series
1997B, (MBIA
Insured),
5.320%(+) 09/01/12... Aaa AAA 5,317
3,075 Denver City and County,
Colorado, Airport
Revenue Refunding,
Series 2000A, (AMBAC
Insured),
6.000% 11/15/15...... Aaa AAA 3,186
----------
10,026
----------
CONNECTICUT -- 0.7%
1,500 Connecticut State, GO
Refunding, Series
1998B,
5.375% 08/15/03...... Aa3 AA 1,539
6,465 Connecticut State,
Housing Finance
Authority, Revenue,
(Housing Mortgage
Finance Program)
Series 1997D-2, AMT,
5.600% 11/15/21...... Aa2 AA 6,217
----------
7,756
----------
DELAWARE -- 0.1%
1,000 Delaware State, GO
Refunding, Series
1991A,
6.100% 08/15/03...... Aaa AAA 1,033
----------
DISTRICT OF COLUMBIA -- 0.8%
1,000 District of Columbia,
Hospital Revenue
Refunding, (Medlantic
Healthcare Group
Project) Series
1997A, (MBIA
Insured),
6.000% 08/15/06...... Aaa AAA 1,063
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA -- (CONTINUED)
$ 1,350 District of Columbia,
Hospital Revenue
Refunding, (Medlantic
Healthcare Group
Project) Series
1997A, (MBIA
Insured),
6.000% 08/15/07...... Aaa AAA $ 1,442
3,050 District of Columbia,
Revenue, (Georgetown
University Project)
Series 1988C, (MBIA
Insured),
5.050% 04/01/11...... Aaa AAA 3,025
4,000 District of Columbia,
Revenue, (The
Smithsonian Institute
Project) Series 1997,
5.000% 02/01/17...... Aaa AAA 3,713
----------
9,243
----------
FLORIDA -- 8.9%
5,000 Broward County,
Florida, School
District, GO
Refunding, Series
1992,
6.000% 02/15/04...... A1 AA- 5,188
3,500 Broward County,
Florida, School
District, GO
Refunding, Series
1993,
5.100% 02/15/02...... A1 AA- 3,530
5,000 Dade County, Florida,
School District, GO,
Series 1995, (MBIA
Insured),
5.500% 08/01/04...... Aaa AAA 5,169
1,000 Deerfield Beach,
Florida, Water and
Sewer Revenue
Refunding, Series
1992, (FGIC Insured),
6.125% 10/01/03...... Aaa AAA 1,033
2,700 Duval County, Florida,
Housing Finance
Authority,
Multi-Family Housing
Revenue Refunding,
(United Dominion
Realty Trust -
Greentree Place
Project) Series 1995,
Mandatory Put
04/01/09 @ 100,
6.750% 04/01/25...... NR BBB+ 2,816
4,600 Duval County, Florida,
Housing Finance
Authority,
Multi-Family Mortgage
Revenue Refunding,
(The Cove Project)
Series 1992,
6.100% 10/01/02...... NR AAA 4,679
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 14
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 4,850 Escambia County,
Florida, Housing
Finance Authority,
Single-Family
Mortgage, Revenue,
Series 1999, AMT,
(FNMA/GNMA COLL),
4.500% 10/01/09...... Aaa NR $ 4,659
3,035 Florida State, Board of
Education, Capital
Outlay GO, Series
1995A,
5.400% 01/01/06...... Aa2 AA+ 3,141
5,575 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.500% 06/01/06...... Aa2 AA+ 5,811
4,000 Florida State, Division
of Bond Financing,
Department of General
Services, Revenue,
(Department of
Natural
Resources - Preservation
2000 Project) Series
1995A, (AMBAC
Insured),
5.500% 07/01/06...... Aaa AAA 4,172
1,000 Florida State,
Jacksonville
Transportation GO
Refunding, Senior
Lien, Series 1997,
5.000% 07/01/19...... Aa AA+ 933
7,440 Florida, Housing
Finance Agency,
Multi-Family Housing
Revenue Refunding,
(Altamonte Project)
Series 1994C,
Mandatory Put
12/01/03 @ 100,
7.000% 12/01/24...... NR BBB+ 7,796
2,000 Florida, Housing
Finance Agency,
Multi-Family Housing
Revenue Refunding,
(United Dominion
Realty Trust -
Andover Project)
Series 1996E, AMT,
Mandatory Put
05/01/08 @ 100,
6.350% 05/01/26...... NR BBB+ 2,051
4,000 Jacksonville, Florida,
Electric Authority
Revenue Refunding,
(St. John
River - Issue 2
Project) Series
1993-10,
6.500% 10/01/03...... Aa2 AA 4,219
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 1,500 Jacksonville, Florida,
Electric Authority,
Revenue Refunding,
(St. John River
Project) Issue 2,
Series 1993-10,
4.600% 10/01/00...... Aa2 AA $ 1,500
5,900 Jacksonville, Florida,
Electric Authority,
Revenue Refunding,
(St. John River
Project) Issue 2,
Series 1993-10,
5.000% 10/01/04...... Aa2 AA 5,987
700 Jacksonville, Florida,
Electric Systems
Authority, Revenue
Refunding, (St. Johns
River Project) Series
1995-6C-2,
6.400% 10/01/00...... Aa1 AA 700
2,500 Lakeland, Florida,
Electrical and Water
Revenue, Series 1996,
Prerefunded 10/01/06
@ 102,
5.500% 10/01/26...... Aaa AAA 2,647
2,000 Lee County, Florida,
Water and Sewer
Revenue, Series
1999A, (AMBAC
Insured),
4.750% 10/01/19...... Aaa AAA 1,777
1,000 Manatee County,
Florida, Public
Utilities Revenue
Refunding, Series
1991B, (MBIA
Insured),
6.400% 10/01/03...... Aaa AAA 1,019
2,080 Nassau County, Florida,
PCR Refunding, (ITT
Rayonier, Inc.
Project) Series 1992,
5.700% 06/01/01...... Baa2 BBB- 2,088
4,075 North Broward, Florida,
Hospital District
Revenue Refunding,
Series 1997,
5.250% 01/15/11...... Aaa AAA 4,110
2,000 Orange County, Florida,
Public Facilities
Revenue, Series
1994A, (AMBAC
Insured),
5.450% 10/01/05...... Aaa AAA 2,075
3,060 Orlando and Orange
County, Florida,
Expressway Authority,
Revenue Refunding,
Senior Lien, Series
1993, (AMBAC
Insured),
5.375% 07/01/08...... Aaa AAA 3,136
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 15
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 2,500 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1992,
5.200% 10/01/00...... Aa1 AA $ 2,500
4,000 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1992,
5.600% 10/01/03...... Aa1 AA 4,126
1,000 Palm Beach County,
Florida, Criminal
Justice Facilities
Revenue, Series 1994,
(FGIC Insured),
5.850% 06/01/07...... Aaa AAA 1,056
7,685 Palm Beach County,
Florida, Health
Facilities Authority
Revenue, (Good
Samaritian Project)
Series 1993,
(MBIA-IBC Insured),
Prerefunded
10/01/03 @ 102,
6.300% 10/01/22...... Aaa AAA 8,179
5,000 Tampa, Florida, Health
Systems Revenue,
(Catholic Health East
Project) Series
1998A-1, (MBIA
Insured),
5.500% 11/15/13...... Aaa AAA 5,098
4,000 Tampa, Florida, Health
Systems Revenue,
(Catholic Health East
Project) Series
1998A-1, (MBIA
Insured),
5.500% 11/15/14...... Aaa AAA 4,059
----------
105,254
----------
GEORGIA -- 1.7%
3,900 Atlanta, Georgia, Urban
Residential Finance
Authority, College
Facilities Revenue,
(Morris Brown College
Project) Series 1991,
Prerefunded 10/01/05
@ 100,
9.500% 12/01/11...... Aaa NR 4,232
3,000 Cartersville, Georgia,
Development
Authority, Sewer
Facilities Revenue
Refunding, (Anheuser-
Busch Companies, Inc.
Project) Series 1997,
AMT,
5.625% 05/01/09...... A1 A+ 3,098
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 5,000 Fulton and DeKalb
Counties, Georgia,
Hospital Authority,
GO Refunding
Certificates, (Grady
Memorial Hospital
Project) Series 1993,
(MBIA Insured),
5.250% 01/01/04...... Aaa AAA $ 5,098
1,105 Fulton County, Georgia,
Development
Authority, Revenue,
(Clark Atlanta
University Project)
Series 1995, (CONNIE
LEE Insured),
5.100% 01/01/05...... Baa3 AAA 1,123
1,000 Georgia State, GO,
Series 1991C,
6.500% 04/01/04...... Aaa AAA 1,064
4,400 Georgia State, GO,
Series 1997C,
6.250% 08/01/09...... Aaa AAA 4,872
700 Georgia, Municipal
Electric Authority,
Power Revenue
Refunding, Series
1991U, Prerefunded
01/01/01 @ 102,
6.800% 01/01/03...... Aaa AAA 718
----------
20,205
----------
HAWAII -- 0.8%
6,000 Hawaii State, GO,
Series 1997CN, (FGIC
Insured),
6.250% 03/01/04...... Aaa AAA 6,302
2,500 Honolulu City and
County, Hawaii, GO
Refunding, Series
1990A,
7.350% 07/01/07...... Aa3 AA- 2,864
----------
9,166
----------
ILLINOIS -- 8.7%
2,370 Chicago, Illinois,
Board of Education
GO, Series 1997,
(AMBAC Insured),
5.250% 12/01/05...... Aaa AAA 2,428
2,500 Chicago, Illinois, Gas
Supply Revenue,
(Peoples Gas Light
and Coke Project)
Series 1985A,
6.875% 03/01/15...... Aa3 AA- 2,613
7,105 Chicago, Illinois, GO
Refunding, Series
1999, (FGIC Insured),
5.250% 01/01/18...... Aaa AAA 6,923
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 16
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 3,750 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Greater Chicago
Capital Improvement
GO, Series 1993,
5.000% 12/01/02...... Aa1 AA $ 3,788
2,000 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Greater Chicago
Capital Improvement
GO, Series 1995,
5.750% 12/01/01...... Aa1 AA 2,030
2,165 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Greater Chicago
Capital Improvement
GO, Series 1995,
5.750% 12/01/01...... Aa1 AA 2,197
10,200 Chicago, Illinois, Park
District, GO, Series
1995,
6.600% 11/15/14...... Aa3 AA 11,143
2,000 Chicago, Illinois,
School Finance
Authority, GO, Series
1994A, (MBIA
Insured),
4.800% 06/01/04...... Aaa AAA 2,008
1,160 Chicago, Illinois,
School Finance
Authority, GO, Series
1994A, (MBIA
Insured),
4.900% 06/01/05...... Aaa AAA 1,168
2,000 Chicago, Illinois,
Water Revenue
Refunding, Series
1992, (AMBAC
Insured),
5.600% 11/01/04...... Aaa AAA 2,070
4,000 Chicago, Illinois,
Water Revenue, Series
1992, (AMBAC
Insured),
5.400% 11/01/02...... Aaa AAA 4,067
2,000 Cook County, Illinois,
Community College
District Number 508,
Certificates of
Participation, Series
1990, (FGIC Insured),
8.750% 01/01/07...... Aaa AAA 2,415
3,000 Cook County, Illinois,
GO, Series 1996,
(FGIC Insured),
5.100% 11/15/03...... Aaa AAA 3,044
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 1,145 Du Page County,
Illinois, School
District, GO, Series
1997, (FGIC Insured),
6.750% 02/01/11...... Aaa NR $ 1,293
4,000 Illinois State, GO,
Series 1994,
5.500% 08/01/03...... Aa2 AA 4,097
3,000 Illinois State, GO,
Series 1994, (MBIA
Insured),
5.500% 08/01/04...... Aaa AAA 3,094
6,850 Illinois State, GO,
Series 2000,
5.750% 06/01/15...... Aaa AAA 7,044
12,500 Illinois State, Sales
Tax Revenue
Refunding, Series
1993S,
6.000% 06/15/03...... Aa2 AAA 12,950
4,000 Illinois State, Sales
Tax Revenue, Series
1994,
5.625% 06/15/02...... Aa2 AAA 4,073
7,560 Illinois Student
Assistance
Commission, Student
Loan Revenue, Series
1999RR, AMT, (GTD STD
LNS),
4.250% 09/01/06...... Aaa NR 7,257
1,000 Illinois, Health
Facilities Authority,
Revenue Refunding,
(Lutheran General
Health Systems
Project) Series
1993C,
5.250% 04/01/02...... A1 A+ 1,003
6,320 Illinois, Health
Facilities Authority,
Revenue, (Highland
Park Hospital
Project) Series
1991B, (FGIC
Insured),
5.900% 10/01/12...... Aaa AAA 6,623
1,050 Lansing, Illinois,
Sales Tax Increment
Revenue Refunding,
(Landings
Redevelopment
Project) Series 1992,
6.500% 12/01/02...... NR BBB 1,082
1,580 Metropolitan Pier and
Exposition Authority,
Revenue, Series
1996A, (AMBAC
Insured),
6.000% 12/15/06...... Aaa AAA 1,684
2,400 Metropolitan Pier and
Exposition, Revenue,
Series 1992, (MBIA-
IBC Insured),
6.500% 06/01/05...... Aaa AAA 2,579
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 17
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 1,000 Regional Transportation
Authority of
Illinois, Revenue,
Series 1991A, (FGIC
Insured), Prerefunded
11/01/01 @ 102,
6.350% 11/01/04...... Aaa AAA $ 1,040
3,300 Regional Transportation
Authority of
Illinois, Revenue,
Series 1994A, (AMBAC
Insured),
5.800% 06/01/05...... Aaa AAA 3,453
----------
103,166
----------
INDIANA -- 1.0%
1,040 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue Refunding,
(Methodist Hospital
of Indiana, Inc.
Project) Series 1992,
6.500% 09/15/02...... A2 NR 1,071
4,390 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Clarian
Health Partners, Inc.
Project) Series
1996A,
5.000% 02/15/04...... Aa3 AA 4,411
2,880 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Methodist
Hospital of Indiana,
Inc. Project) Series
1992A, (Escrowed to
Maturity),
5.750% 09/01/15...... NR AA- 2,988
3,000 Indiana, Municipal
Power Agency, Power
Supply Systems
Revenue Refunding,
Series 1993B, (MBIA
Insured),
5.375% 01/01/03...... Aaa AAA 3,049
----------
11,519
----------
IOWA -- 1.6%
9,650 Iowa, Student Loan
Liquidity
Corporation, Student
Loan Revenue
Refunding, Series
1998J, AMT, (AMBAC
Insured),
4.800% 06/01/09...... Aaa AAA 9,434
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
IOWA -- (CONTINUED)
$10,000 Iowa, Student Loan
Liquidity
Corporation, Student
Loan Revenue, (Iowa
College Student Aid
Project) Series
1997B, AMT,
4.900% 12/01/05...... Aaa NR $ 9,987
----------
19,421
----------
KANSAS -- 1.4%
5,000 Kansas State,
Department of
Transportation,
Highway Revenue,
Series 1992,
7.250% 03/01/05...... Aa2 AA+ 5,513
5,000 Kansas State,
Development Finance
Authority, Revenue,
(Board of Regents -
Rehabilitation
Project) Series
1997G-2, (AMBAC
Insured),
5.500% 10/01/06...... Aaa AAA 5,215
4,500 Kansas State,
Development Finance
Authority, Revenue,
Series 1998A,
4.800% 06/01/13...... NR A- 4,261
2,175 Labette County, Kansas,
Single-Family
Mortgage Revenue,
Zero Coupon Capital
Accumulator Bonds,
Series 1982,
(Escrowed to
Maturity),
5.690%(+) 12/01/14... Aaa A- 1,003
----------
15,992
----------
MARYLAND -- 1.2%
1,500 Baltimore, Maryland,
Port Facilities
Revenue,
(E.I. duPont de
Nemours Project)
Series 1985,
6.500% 12/01/10...... Aa3 AA- 1,581
4,890 Maryland State, GO
Refunding, Series
1991-3,
6.250% 07/15/02...... Aaa AAA 4,960
3,500 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series
1993, (FSA Insured),
5.200% 06/15/06...... Aaa AAA 3,577
2,000 Washington County,
Maryland, Suburban
Sanitation District
Authority, General
Construction GO
Refunding, Series
1993,
5.000% 06/01/04...... Aa1 AA 2,034
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 18
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 2,500 Washington County,
Maryland, Suburban
Sanitation District
Authority, Water
Supply GO Refunding,
Series 1993,
4.900% 12/01/05...... Aa1 AA $ 2,542
----------
14,694
----------
MASSACHUSETTS -- 3.7%
1,000 Massachusetts State, GO
Refunding, Series
1993B,
5.000% 11/01/01...... Aa2 AA- 1,007
5,000 Massachusetts State, GO
Refunding, Series
1993C,
5.000% 08/01/07...... Aa2 AA- 5,070
11,840 Massachusetts State, GO
Refunding, Series
1993C, (AMBAC
Insured),
4.950% 08/01/05...... Aaa AAA 12,032
4,000 Massachusetts State, GO
Refunding, Series
1996A,
5.000% 11/01/09...... Aa2 AA- 4,050
1,000 Massachusetts State,
Industrial Financing
Agency, Revenue,
(Babson College Issue
Project) Series
1998A, (MBIA
Insured),
5.000% 10/01/18...... Aaa AAA 927
6,000 Massachusetts State,
Water Resources
Authority, General
Revenue Refunding,
Series 1993B,
5.125% 03/01/04...... A1 A+ 6,098
4,175 Massachusetts,
Educational Financing
Authority,
Educational Loan
Revenue Refunding,
Series 1999A, AMT,
(AMBAC Insured),
4.750% 07/01/11...... Aaa AAA 3,982
3,745 Massachusetts,
Educational Financing
Authority,
Educational Revenue,
Series 1998C, AMT,
(MBIA Insured),
4.600% 12/01/08...... Aaa AAA 3,640
3,325 Massachusetts,
Educational Financing
Authority,
Educational Revenue,
Series 1998C, AMT,
(MBIA Insured),
4.700% 12/01/09...... Aaa AAA 3,232
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS -- (CONTINUED)
$ 2,000 Massachusetts,
University of Lowell
Building Authority,
Revenue, Series
1995A, (AMBAC
Insured),
5.700% 11/01/09...... Aaa AAA $ 2,098
2,000 New England Education
Loan Marketing
Company of
Massachusetts,
Student Loan Revenue
Refunding, Series
1993A, AMT,
5.700% 07/01/05...... Aa2 AA 2,070
----------
44,206
----------
MICHIGAN -- 2.6%
7,500 Detroit, Michigan,
Convention
Facilities, Revenue
Refunding, (Cobo Hall
Expansion Project)
Series 1993, (FSA
Insured),
5.100% 09/30/04...... Aaa AAA 7,616
1,000 Detroit, Michigan, GO
Refunding, Series
1995B,
6.750% 04/01/03...... Baa1 A- 1,043
2,000 Detroit, Michigan, GO
Refunding, Series
1995B,
7.000% 04/01/04...... Baa1 A- 2,130
7,000 Michigan State,
Hospital Finance
Authority, Revenue,
(Ascension Health
Credit Project)
Series 1999B,
Mandatory Put
11/05/04 @ 100,
5.050% 11/15/33...... Aa2 AA 6,964
4,000 Michigan State,
Hospital Finance
Authority, Revenue,
(Ascension Health
Credit Project)
Series 1999B,
Mandatory Put
11/15/05 @ 100,
5.200% 11/15/33...... Aa2 AA 3,984
5,000 Michigan State,
Hospital Financing
Authority, Revenue,
(Ascension Health
Credit Project)
Series 1999A,
5.750% 11/15/18...... Aaa AAA 4,961
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 19
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN -- (CONTINUED)
$ 3,195 Royal Oak, Michigan,
Hospital Financing
Authority, Hospital
Revenue, (William
Beaumont Hospital
Project) Series 1997,
5.100%(+) 11/15/07... Aa3 AA $ 2,228
2,000 Royal Oak, Michigan,
Hospital Financing
Authority, Hospital
Revenue, (William
Beaumont Hospital
Project) Series
1997K,
5.050%(+) 11/15/06... Aa3 AA 1,472
----------
30,398
----------
MINNESOTA -- 1.6%
3,000 Minnesota State, GO,
Refunding, Series
1998,
4.000% 11/01/04...... Aaa AAA 2,928
5,000 Minnesota State, GO,
Series 1994,
5.600% 10/01/05...... Aaa AAA 5,188
1,390 Rochester, Minnesota,
Health Care
Facilities Revenue,
(Mayo
Foundation - Mayo
Medical Center
Project) Series
1988C,
7.100% 11/15/00...... NR AA+ 1,395
2,150 Southern Minnesota
Municipal Power
Agency, Power Supply
Systems Revenue,
Refunded Balance,
Series 1992B,
5.800% 01/01/07...... Aaa AAA 2,237
3,850 Southern Minnesota
Municipal Power
Agency, Power Supply
Systems Revenue,
Unrefunded Balance,
Series 1992B,
5.800% 01/01/07...... A2 A+ 3,983
3,200 St. Paul, Minnesota,
Sewer Revenue
Refunding, Series
1993, (AMBAC
Insured),
5.100% 12/01/01...... Aaa AAA 3,225
----------
18,956
----------
MISSISSIPPI -- 0.9%
8,000 Adams County,
Mississippi, PCR,
(International Paper
Company Project)
Series 1994A,
5.500% 12/01/05...... Baa1 BBB+ 8,053
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSISSIPPI -- (CONTINUED)
$ 2,370 Mississippi, Higher
Education Authority
Revenue, Series
1992C, AMT, (GTD STD
LNS), 6.400%
01/01/03............. NR A $ 2,439
----------
10,492
----------
MISSOURI -- 2.1%
2,000 Kansas City, Missouri,
GO, Series 1991,
6.000% 03/01/07...... Aa3 AA 2,012
4,000 Kansas City, Missouri,
Industrial
Development
Authority, IDR,
(Owens-Illinois, Inc.
- Georgia-Pacific
Corporation Project)
Series 1998,
4.900% 12/31/08...... Baa2 NR 3,810
1,590 Kansas City, Missouri,
Water Revenue, Series
1994,
5.900% 12/01/05...... Aa3 AA 1,669
1,150 Metropolitan St. Louis,
Missouri, Sewer
District, GO
Refunding, Series
1991, (FGIC Insured),
6.300% 02/15/01...... Aaa AAA 1,157
1,500 Missouri State, Board
of Public Buildings,
Revenue Refunding,
Series 1991,
5.900% 12/01/01...... Aa2 AA 1,525
2,980 Missouri State,
Environmental
Improvement and
Energy Resource
Authority, PCR
Refunding,
(Associated
Electrical
Cooperation - Thomas
Hill Project) Series
1996,
5.500% 12/01/05...... A1 AA 3,090
2,000 Missouri State, Health
and Educational
Facilities Authority,
Health Facilities
Revenue, (BJC Health
Systems Project)
Series 1994A,
5.900% 05/15/04...... Aa3 NR 2,083
2,805 Platte County,
Missouri, Public
Building Corporation,
Leasehold Revenue,
(Law Enforcement
Center Project)
Series 1996, (FSA
Insured),
5.300% 09/01/02...... Aaa AAA 2,835
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 20
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSOURI -- (CONTINUED)
$ 1,000 Springfield, Missouri,
School District
Number R-12, GO
Refunding, Series
1991A, (FGIC
Insured),
6.400% 03/01/03...... Aaa AAA $ 1,008
1,000 Springfield, Missouri,
School District
Number R-12, GO
Refunding, Series
1991A, (FGIC
Insured),
6.400% 03/01/04...... Aaa AAA 1,008
1,000 Springfield, Missouri,
School District
Number R-12, GO
Refunding, Series
1991A, (FGIC
Insured),
6.250% 03/01/05...... Aaa AAA 1,007
1,400 St. Louis County,
Missouri, Pattonville
R-3 School District,
GO, Series 1992,
(FGIC Insured),
5.700% 02/01/01...... Aaa AAA 1,406
1,565 St. Louis, Missouri,
Metropolitan Sewer
District, Mississippi
River Subdistrict GO
Refunding, Series
1991, (FGIC Insured),
6.400% 02/15/02...... Aaa AAA 1,575
1,000 St. Louis, Missouri,
School District, GO,
Series 1991, (FGIC
Insured),
6.500% 04/01/03...... Aaa AAA 1,040
----------
25,225
----------
MONTANA -- 0.3%
4,475 Lewis and Clark County,
Montana,
Environmental
Facilities Revenue,
(Asarco, Inc.
Project) Series 1998,
AMT,
5.850% 10/01/33...... B3 BB 3,510
----------
NEBRASKA -- 0.4%
1,000 Lincoln, Nebraska,
Electric Systems
Revenue Refunding,
Series 1993A,
5.000% 09/01/06...... Aa2 AA 1,011
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEBRASKA -- (CONTINUED)
$ 3,500 Nebraska Public Power
District, Power
Supply Systems
Revenue, Series 1993,
5.300% 01/01/02...... Aaa AAA $ 3,535
----------
4,546
----------
NEVADA -- 1.5%
1,000 Clark County, Nevada,
GO Refunding, Series
1991, (MBIA Insured),
6.200% 10/01/03...... Aaa AAA 1,025
6,175 Clark County, Nevada,
School District, GO
Refunding, Series
1993B, (FGIC
Insured),
5.375% 05/01/05...... Aaa AAA 6,331
1,000 Clark County, Nevada,
School District, GO,
Series 1991A, (MBIA
Insured),
6.500% 06/01/02...... Aaa AAA 1,022
1,255 Nevada State, GO,
Series 1995A,
5.200% 11/01/08...... Aa2 AA 1,275
6,570 Nevada State, GO,
Series 1998A,
5.250% 05/15/16...... Aa2 AA 6,379
1,000 Nevada State, Municipal
Board, GO, (Bank
Project Number 28-31)
Series 1989C,
7.000% 01/01/03...... Aaa AAA 1,006
1,000 Nevada State, Municipal
Board, GO, (Bank
Project Number 38-39)
Series 1992A,
6.000% 07/01/01...... NR AA 1,012
----------
18,050
----------
NEW JERSEY -- 1.8%
4,000 Bergen County, New
Jersey, Utilities
Authority, Water PCR,
Series 1992B, (FGIC
Insured),
5.500% 12/15/02...... Aaa AAA 4,089
3,340 New Jersey State
Housing and Mortgage
Finance Agency,
Revenue, (Home Buyer
Project), Series
1999, AMT,
5.300% 04/01/08...... Aaa AAA 3,401
3,440 New Jersey State
Housing and Mortgage
Finance Agency,
Revenue, (Home Buyer
Project), Series
1999, AMT,
5.400% 04/01/09...... Aaa AAA 3,517
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 21
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW JERSEY -- (CONTINUED)
$ 5,000 New Jersey State, GO
Refunding, Series
1992D,
5.500% 02/15/04...... Aa1 AA+ $ 5,155
4,000 New Jersey State,
Transportation Trust
Fund Authority,
Transportation
Systems, Revenue
Refunding, Series
1994A, (AMBAC
Insured),
5.200% 12/15/00...... Aaa AAA 4,007
1,000 New Jersey, University
of Medicine and
Dentistry, Revenue,
Series 1989C,
7.000% 12/01/00...... A3 AA- 1,004
----------
21,173
----------
NEW MEXICO -- 1.4%
3,000 Bernalillo County, New
Mexico, Gross
Receipts Tax Revenue
Refunding, Series
1998,
5.250% 04/01/27...... Aa3 AA 2,863
4,000 New Mexico State, GO,
Series 1995,
5.250% 09/01/03...... Aa1 AA+ 4,002
6,000 New Mexico State,
Highway Community Tax
Revenue, Series
2000A,
6.000% 06/15/10...... Aa2 AA+ 6,505
2,095 New Mexico, Mortgage
Finance Authority,
Single-Family
Mortgage Revenue,
Series 1997E-2, AMT,
(GNMA/FNMA/FHLMC
COLL),
5.600% 07/01/17...... NR AAA 2,029
1,305 New Mexico, Mortgage
Financial Authority,
Single-Family
Mortgage Revenue,
Series 1997C-2, AMT,
(GNMA/FNMA/FHLMC
COLL),
5.950% 07/01/17...... Aaa NR 1,305
----------
16,704
----------
NEW YORK -- 2.4%
3,000 New York City, New
York, Municipal
Assistance
Corporation, Revenue,
Series 1997J,
5.750% 07/01/03...... Aa2 AA 3,101
2,500 New York State,
Building Authority,
General Revenue,
Series 1997,
5.000% 01/01/05...... Aa3 AA- 2,537
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK -- (CONTINUED)
$ 5,000 New York State,
Dormitory Authority,
Revenue, (City
University Project)
Series 1993B,
5.250% 07/01/06...... Baa1 BBB+ $ 5,112
7,000 New York State,
Dormitory Authority,
State University
Educational
Facilities Revenue,
Series 1993A,
5.400% 05/15/04...... A3 A 7,196
4,000 New York, New York,
City Transitional
Finance Authority,
Revenue, Series
1998B,
4.600% 11/15/11...... Aa3 AA 3,829
2,260 New York, New York, GO,
Series 1993E, (MBIA-
IBC Insured),
Prerefunded 05/15/03
@ 101.5,
5.800% 05/15/05...... Aaa AAA 2,364
3,500 New York, New York, GO,
Series 1997, (MBIA
Insured),
6.250% 04/15/07...... Aaa AAA 3,800
----------
27,939
----------
NORTH CAROLINA -- 3.1%
3,000 Charlotte, North
Carolina, Airport
Revenue, Series
1999B, AMT, (MBIA
Insured),
6.000% 07/01/24...... Aaa AAA 3,062
2,000 Cumberland County,
North Carolina, GO,
Series 1998, (FGIC
Insured),
5.000% 03/01/17...... Aaa AAA 1,895
5,000 Mecklenburg County,
North Carolina, GO
Refunding, Series
1992,
5.750% 03/01/03...... Aaa AAA 5,115
3,000 Mecklenburg County,
North Carolina,
Public Improvement
GO, Series 1992,
Prerefunded 01/01/02
@ 101,
6.200% 01/01/04...... Aaa AAA 3,092
7,000 North Carolina State,
Public School
Building, GO, Series
1999,
4.600% 04/01/15...... Aaa AAA 6,371
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 22
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$ 1,895 North Carolina, Housing
Finance Agency,
(Single-Family
Program) Series
1997RR, AMT, (FHA
Insured),
5.850% 09/01/28...... Aa2 AA $ 1,877
4,000 North Carolina, Medical
Care Commission,
Health Care
Facilities Revenue,
(Carolina Medicorp,
Inc. Project) Series
1996,
5.125% 05/01/16...... A1 AA- 3,764
3,135 North Carolina, Medical
Care Commission,
Health Care
Facilities Revenue,
(Pitt County Memorial
Hospital Project)
Series 1998A,
4.400% 12/01/08...... Aa3 AA- 2,978
5,000 North Carolina, Medical
Care Commission,
Hospital Revenue,
(Duke University
Hospital Project)
Series 1996C,
5.250% 06/01/26...... Aa3 AA 4,585
3,000 North Carolina, Medical
Care Commission,
Hospital Revenue,
(Pitt County Memorial
Hospital Project)
Series 1998B,
5.000% 12/01/18...... Aa3 AA- 2,723
1,200 Winston-Salem, North
Carolina, Water and
Sewer System Revenue
Refunding, Series
1997,
4.600% 06/01/11...... Aa2 AA+ 1,152
----------
36,614
----------
OHIO -- 1.0%
2,000 Akron/Bath/Copley,
Ohio, Joint Township
Hospital District,
Revenue, (Summa
Health Systems
Project) Series
1993A,
5.750% 11/15/08...... Baa1 NR 1,933
6,060 Montgomery County,
Ohio, Hospital
Revenue, (Kettering
Medical Center
Project) Series 1999,
6.500% 04/01/13...... Baa1 BBB+ 6,135
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO -- (CONTINUED)
$ 2,500 Ohio State, Public
Facilities
Commission, Revenue,
(Higher Education
Capital Facilities
Project) Series
1995A-II, (AMBAC
Insured),
5.200% 05/01/05...... Aaa AAA $ 2,555
1,715 Ohio, Housing Finance
Agency, Mortgage
Revenue, (Residential
Project) Series
1998B-2, AMT, (GNMA
COLL),
4.800% 09/01/07...... Aaa NR 1,697
----------
12,320
----------
OKLAHOMA -- 0.4%
1,500 Oklahoma, Development
Finance Authority,
Revenue Refunding,
(Hillcrest Healthcare
Center Inc. Project)
Series 1999A,
4.700% 08/15/05...... Ba1 BB+ 1,356
5,000 Oklahoma, Development
Finance Authority,
Revenue Refunding,
(Hillcrest Healthcare
Center Inc. Project)
Series 1999A,
5.625% 08/15/19...... Ba1 BB+ 3,686
----------
5,042
----------
OREGON -- 1.3%
6,000 Multnomah County,
Oregon, School
District Number 1J -
Portland, GO, Series
1996,
5.500% 06/01/05...... Aa3 A+ 6,224
4,300 Portland, Oregon, Sewer
Systems Revenue,
Series 1994A,
5.450% 06/01/03...... A1 A+ 4,398
4,500 Washington County,
Oregon, Sewer Revenue
Refunding, Senior
Lien, Series 1992A,
(AMBAC Insured),
5.300% 10/01/01...... Aaa AAA 4,541
----------
15,163
----------
PENNSYLVANIA -- 3.2%
5,000 Allegheny County,
Pennsylvania, Airport
Revenue Refunding,
(Pittsburgh
International Airport
Project) Series
1997A-1, AMT, (MBIA
Insured),
5.750% 01/01/08...... Aaa AAA 5,222
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 23
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA --
(CONTINUED)
$ 3,575 Delaware County,
Pennsylvania
Authority, Health
Care Revenue, Series
1993B, Prerefunded
11/15/05 @ 100,
6.000% 11/15/07...... Aaa NR $ 3,750
2,890 Erie, Pennsylvania,
Water Authority,
Water Revenue, Series
1991, Prerefunded
12/01/01 @ 100,
7.125% 12/01/11...... Baa3 BBB 2,976
5,000 Pennsylvania State, GO
Refunding, Series
1997, (AMBAC
Insured),
5.125% 09/15/04...... Aaa AAA 5,099
9,180 Pennsylvania, Housing
Finance Agency,
Single-Family
Mortgage Revenue,
Series 1997A-61, AMT,
5.450% 10/01/21...... Aa2 AA+ 8,734
2,500 Philadelphia,
Pennsylvania,
Industrial
Development
Authority, IDR
Refunding, (Ashland
Oil Inc. Project)
Series 1993,
5.700% 06/01/05...... Baa2 NR 2,536
9,000 Philadelphia,
Pennsylvania, Water
and Wastewater
Systems Revenue,
Series 1993, (FGIC
Insured),
5.500% 06/15/03...... Aaa AAA 9,209
----------
37,526
----------
RHODE ISLAND -- 0.3%
55 Rhode Island State, GO,
Series 1992A,
5.400% 08/01/06...... Aa3 AA- 56
2,945 Rhode Island State, GO,
Series 1992A,
Prerefunded 08/01/01
@ 102,
5.400% 08/01/06...... Aa3 AA- 3,026
----------
3,082
----------
SOUTH CAROLINA -- 3.5%
2,195 Cherokee County, South
Carolina, School
District Number 001,
GO, Series 1997,
(SCSDE Insured),
5.500% 03/01/06...... Aa1 NR 2,283
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$ 3,600 Cherokee County, South
Carolina, School
District Number 001,
GO, Series 1997,
(SCSDE Insured),
5.000% 03/01/16...... Aa1 NR $ 3,422
15,400 Georgetown County,
South Carolina, PCR
Refunding,
(International Paper
Company Project)
Series 1999A,
5.125% 02/01/12...... Baa1 BBB+ 14,482
3,210 Greenville Hospital
Systems of South
Carolina, Hospital
Facilities Revenue,
Series 1996B,
(GTY-AGMT),
5.500% 05/01/08...... Aa3 AA 3,296
5,160 Piedmont Municipal
Power Agency, South
Carolina, Electric
Revenue, Series
1996B, (FGIC
Insured),
6.000% 01/01/07...... Aaa AAA 5,491
2,580 Piedmont Municipal
Power Agency, South
Carolina, Electric
Revenue, Unrefunded
Balance, Series
1991A, (FGIC
Insured),
6.125% 01/01/03...... Aaa AAA 2,664
3,665 Richland County, South
Carolina, Solid Waste
Disposal Facilities
Revenue, (Union Camp
Corporation Project)
Series 1992A, AMT,
6.750% 05/01/22...... Baa1 BBB+ 3,705
6,890 York County, South
Carolina, Exempt
Facilities IDR,
(Hoechst Celanese
Corporation Project)
Series 1994, AMT,
5.700% 01/01/24...... Baa2 BBB 6,218
----------
41,561
----------
SOUTH DAKOTA -- 0.9%
11,000 Education Loans Inc.,
South Dakota, Student
Loan Revenue, Series
1998, AMT, (GTD STD
LNS),
4.950% 06/01/10...... Aaa NR 10,744
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 24
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- 3.7%
$10,000 Knox County, Tennessee,
Health Educational
and Housing
Facilities Board,
Revenue, (University
Health System Inc.
Project) Series 1999,
5.625% 04/01/29...... Baa1 NR $ 8,579
6,000 Knox County, Tennessee,
Health Educational
and Housing
Facilities Board,
Revenue, (University
Health Systems Inc.
Project) Series 1999,
5.750% 04/01/19...... Baa1 NR 5,402
6,270 McMinn County,
Tennessee, Industrial
Development Board,
Recycling Facilities
Revenue, (Bowater
Inc. Project) Series
1992, AMT,
7.400% 12/01/22...... Baa3 BBB 6,477
1,000 Memphis, Tennessee,
Electric System
Revenue Refunding,
Series 1992,
5.800% 01/01/03...... Aa3 AA 1,026
1,925 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Electric
Revenue, Series
1992B,
5.625% 05/15/03...... Aa3 AA 1,975
1,000 Metropolitan
Government, Nashville
and Davidson County,
Tennessee, Health and
Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College
Project) Series 1996,
(AMBAC Insured),
6.000% 12/01/08...... Aaa AAA 1,077
6,450 Shelby County,
Tennessee, GO
Refunding, Series
1997B,
5.500% 08/01/08...... Aa3 AA+ 6,750
8,000 Shelby County,
Tennessee, Health
Educational and
Housing Facilities
Board, Revenue, (St.
Jude's Childrens
Research Project)
Series 1999,
5.375% 07/01/24...... NR AA 7,409
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 1,190 Tennessee State,
Housing Development
Agency, Revenue,
Series 1998, AMT,
4.950% 07/01/10...... Aa2 AA $ 1,169
4,000 Tennessee, Gas Revenue,
(Tennergy Corporation
Project) Series 1999,
(MBIA Insured),
5.000% 06/01/05...... Aaa AAA 3,881
----------
43,745
----------
TEXAS -- 12.2%
2,175 Aldine, Texas,
Independent School
District, GO
Refunding, Series
1997, (PSFG Insured),
5.450%+ 02/15/07..... Aaa AAA 1,585
2,500 Arlington, Texas, Water
and Wastewater
Systems Revenue,
Series 1999,
4.000% 06/01/07...... Aa3 AA- 2,353
1,800 Austin, Texas,
Utilities System
Revenue Refunding,
Series 1991A,
(AMBAC Insured),
6.500% 11/15/03...... Aaa AAA 1,872
2,555 Austin, Texas,
Utilities Systems
Revenue, Series
1977-2, (Escrowed to
Maturity),
5.600% 10/01/03...... Aaa AAA 2,629
5,000 Austin, Texas,
Utilities Systems
Revenue, Series
1986A, Prerefunded
05/15/01 @ 100,
8.000% 11/15/16...... Aaa AAA 5,111
2,585 Belton, Texas,
Independent School
District, GO
Refunding, Series
1998, (PSF-GTD),
5.250% 08/15/08...... Aaa AAA 2,657
975 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior
Lien, Series 1994A-2,
AMT, (GTD STD LNS),
6.050% 06/01/03...... Aaa NR 993
2,575 Carrollton, Texas,
Farmers Branch
Independent School
District, GO, Series
1996, (PSFG Insured),
5.700% 02/15/17...... Aaa AAA 2,597
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 25
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,245 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
5.600% 08/15/04...... Aaa AAA $ 3,328
2,190 Fort Worth, Texas,
Higher Education
Financial
Corporation, Higher
Education Revenue,
(Texas Christian
University Project)
Series 1997,
5.000% 03/15/17...... Aa3 AA- 2,036
1,050 Galena Park, Texas,
Independent School
District, GO, Series
1997, (PSF - GTD),
5.000% 08/15/21...... Aaa NR 955
3,120 Garland, Texas,
Certificates of
Obligation, GO,
Series 2000,
5.500% 02/15/12...... Aa2 AA 3,183
5,650 Guadalupe Blanco River
Authority, Texas,
Sewer and Solid Waste
Disposal Facility,
Revenue, (E.I. duPont
de Nemours and
Company Project)
Series 1999,
5.500% 05/01/29...... Aa3 AA- 5,266
2,730 Harris County, Texas,
GO, Series 1996,
5.150% 10/01/07...... Aa1 AA 2,779
1,000 Harris County, Texas,
GO, Series 1996,
5.375% 10/01/09...... Aa1 AA 1,023
2,350 Harris County, Texas,
Health Facilities
Development
Authority, Hospital
Revenue Refunding,
(Texas Childrens
Hospital Project)
Series 1995, (MBIA
Insured, Escrowed to
Maturity),
6.000% 10/01/05...... Aaa AAA 2,491
5,000 Harris County, Texas,
Health Facilities
Development
Authority, Revenue,
Series 1999A,
5.375% 07/01/19...... Aaa AAA 4,710
7,000 Houston, Texas, Airport
System Revenue, Sub-
Lien, Series 1998B,
AMT, (FGIC Insured),
5.250% 07/01/12...... Aaa AAA 6,939
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 7,000 Houston, Texas, Water
and Sewer Systems
Revenue Refunding,
Junior Lien, Series
1997D, (FGIC
Insured),
5.000% 12/01/25...... Aaa AAA $ 6,254
2,500 Houston, Texas,
Waterworks and Sewer
Systems Revenue,
Junior Lien, Series
1992A, (MBIA
Insured), Prerefunded
12/01/02 @ 102,
5.800% 12/01/04...... Aaa AAA 2,613
1,000 Lewisville, Texas,
Independent School
District, GO, Series
1997, (PSF-GTD),
6.750% 08/15/08...... Aaa NR 1,121
3,000 Lower Neches Valley,
Texas, Industrial
Development
Corporation
Authority, Revenue
Refunding, (Mobil Oil
Refunding Corporation
Project) Series 1998,
5.550% 03/01/33...... Aaa AAA 2,822
5,000 North Central Texas,
Health Facilities
Development
Corporation, Health
Facilities Revenue,
(Presbyterian
Healthcare
Residential Project)
Series 1996B, (MBIA
Insured),
5.500% 06/01/16...... Aaa AAA 5,052
5,210 North Central, Texas,
Health Facilities
Development
Corporation, Revenue
Refunding, (Baylor
Health Care Systems
Project) Series 1995,
5.500% 05/15/13...... Aa3 AA- 5,163
6,000 Red River Authority,
Texas, PCR Refunding,
Series 1991, (AMBAC
Insured),
5.200% 07/01/11...... Aaa NR 6,004
2,110 Richardson, Texas, GO
Refunding, Series
1998,
5.250% 02/15/07...... Aa2 AA+ 2,162
1,095 San Antonio, Texas,
Electric and Gas
Revenue, Prerefunded,
5.200% 02/01/01...... Aa1 AA 1,098
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 26
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,805 San Antonio, Texas,
Electric and Gas
Revenue, Unrefunded
Balance, Series 1994,
5.200% 02/01/01...... Aa1 AA $ 1,809
2,000 Southwest Higher
Education Authority,
Inc., Higher
Education Revenue
Refunding, (Southern
Methodist University
Project) Series 1995,
(FSA Insured),
5.125% 10/01/16...... Aaa AAA 1,905
4,805 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue,
(Texas Health
Resources Systems
Project) Series
1997A, (MBIA
Insured),
5.750% 02/15/10...... Aaa AAA 4,895
5,000 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue,
(Texas Health
Resources Systems
Project) Series
1997A, (MBIA
Insured),
5.250% 02/15/17...... Aaa AAA 4,617
3,200 Texas A&M University,
Financing Systems
Revenue, Series 1995,
5.950% 05/15/05...... Aa2 AA+ 3,364
3,000 Texas State, GO
Refunding, Series
1992A,
5.700% 10/01/03...... Aa1 AA 3,095
4,000 Texas State,
Superconducting, GO
Refunding, Series
1992C,
5.350% 04/01/01...... Aa1 AA 4,019
5,000 Texas State, Turnpike
Authority, Dallas
North Tollway
Revenue, (President
George Bush Turnpike
Project) Series 1995,
(FGIC Insured),
5.000% 01/01/25...... Aaa AAA 4,488
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,000 Texas State, Veterans
Housing Assistance,
GO, Series 1994B-4,
AMT,
6.100% 12/01/06...... Aa1 AA $ 1,031
10,910 Texas State, Water
Development GO,
Series 1997D,
5.000% 08/01/19...... Aa1 AA 10,058
4,790 Texas, Municipal Power
Agency, Revenue,
Refunded Balance,
Series 1992, (MBIA
Insured), Prerefunded
09/01/02 @ 100,
5.750% 09/01/12...... Aaa AAA 4,902
12,210 Texas, Municipal Power
Agency, Revenue,
Series 1992, (MBIA
Insured), Prerefunded
09/01/02 @ 100,
5.750% 09/01/12...... Aaa AAA 12,493
4,500 Travis County, Texas,
Health Facilities
Development
Corporation, Revenue,
(Ascension Health
Credit Project)
Series 1999A, (AMBAC
Insured),
5.875% 11/15/24...... Aaa AAA 4,515
----------
145,987
----------
UTAH -- 1.2%
2,145 Cache County, Utah,
School District,
(Utah School Board
Guaranty Program) GO
Refunding, Series
1997, (SCH BD GTY),
5.500% 06/15/07...... NR AAA 2,239
1,000 Davis County, Utah,
School District, GO,
Series 1991, (FGIC
Insured), Prerefunded
12/01/01 @ 100,
6.450% 06/01/02...... Aaa AAA 1,024
1,000 Jordan, Utah, School
District, GO
Refunding, Series
1993,
5.600% 06/15/02...... Aa3 NR 1,018
5,080 Salt Lake County, Utah,
GO, Series 1995,
5.500% 12/15/05...... Aaa AAA 5,301
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 27
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH -- (CONTINUED)
$ 5,000 Utah, Intermountain
Power Agency, Power
Supply Revenue
Refunding, Series
1993C,
5.000% 07/01/05...... A1 A+ $ 5,052
----------
14,634
----------
VIRGINIA -- 4.3%
6,170 Chesapeake, Virginia,
GO Refunding, Series
1993,
5.000% 12/01/03...... Aa3 AA 6,264
4,000 Chesterfield County,
Virginia, Improvement
GO Refunding, Series
1991,
6.250% 07/15/05...... Aaa AAA 4,132
6,000 Covington-Allegheny
County, Virginia,
Industrial
Development
Authority, PCR
Refunding, (Westvaco
Corporation Project)
Series 1994,
5.900% 03/01/05...... A3 BBB+ 6,286
5,790 Fairfax County,
Virginia, GO
Refunding, Series
1993C, (State Aid
Withholding),
5.000% 05/01/05...... Aaa AAA 5,897
1,500 Metropolitan
Washington, District
of Columbia, Airport
Revenue, Series
1994A, AMT, (MBIA
Insured),
5.600% 10/01/06...... Aaa AAA 1,561
2,500 Newport News, Virginia,
GO Refunding, Series
1993B, (State Aid
Withholding),
5.400% 11/01/06...... Aa2 AA 2,589
3,000 Virginia Beach,
Virginia, GO
Refunding, Series
1993,
5.100% 07/15/05...... Aa1 AA 3,068
1,100 Virginia State, Higher
Educational
Institutions, GO,
Series 1992C,
Prerefunded 06/01/02
@ 100,
5.900% 06/01/05...... Aaa AAA 1,126
4,845 Virginia State, Housing
Development
Authority,
Multi-Family Housing
Revenue, Series
1999B, AMT,
5.200% 05/01/19...... Aa1 AA+ 4,455
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,500 Virginia State, Public
Facilities GO, Series
1993A,
5.400% 06/01/05...... Aaa AAA $ 1,553
4,000 Virginia State, Public
School Authority,
Revenue Refunding,
Series 1993B, (State
Aid Withholding),
5.100% 01/01/05...... Aa1 AA 4,077
7,000 Virginia State, Public
School Authority,
Revenue Refunding,
Series 1993B, (State
Aid Withholding),
5.250% 01/01/07...... Aa1 AA 7,177
2,600 Virginia, College
Building Authority,
Educational
Facilities Revenue
Refunding,
(University of
Richmond Project)
Series 1992,
5.625% 11/01/02...... Aa2 AA 2,628
----------
50,813
----------
WASHINGTON -- 7.6%
4,250 Clark County,
Washington, School
District Number 037,
GO Refunding,
5.125% 12/01/10...... Aa3 NR 4,298
1,610 Clark County,
Washington, Sewer
Revenue, Series 1996,
(MBIA Insured),
5.500% 12/01/04...... Aaa AAA 1,662
2,500 King County,
Washington, GO
Refunding, Series
1993C,
5.625% 06/01/02...... Aaa AA+ 2,544
1,000 King County,
Washington, GO
Refunding, Series
1998B,
4.750% 01/01/17...... Aa1 AA+ 895
300 King County,
Washington, GO,
Series 1990B,
7.100% 12/01/03...... Aaa AA+ 301
1,700 King County,
Washington, GO,
Unrefunded Balance,
Series 1993A,
5.250% 12/01/01...... Aa1 AA+ 1,717
1,310 King County,
Washington, School
District Number 415,
GO, (FSA Insured),
5.200% 06/01/05...... Aaa AAA 1,339
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 28
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$ 3,000 Pierce County,
Washington, School
District Number 003,
GO Refunding, Series
1996, (FGIC Insured),
5.000% 12/01/03...... Aaa AAA $ 3,038
1,400 Seattle, Washington,
Water Systems Revenue
Refunding, Series
1993,
5.500% 06/01/18...... Aa2 AA 1,383
1,000 Snohomish County,
Washington, School
District Number 002,
GO Refunding, Series
1991A, (MBIA
Insured),
6.800% 06/01/03...... Aaa AAA 1,015
7,800 Spokane County,
Washington, School
District Number 354
GO, Series 1998,
(FGIC Insured),
5.500% 12/01/10...... Aaa AAA 8,145
2,195 Tacoma, Washington,
Electric Systems
Revenue, Series 1992,
(AMBAC Insured),
5.900% 01/01/05...... Aaa AAA 2,268
2,750 Tacoma, Washington,
Electrical Systems
Revenue Refunding,
Series 1994, (FGIC
Insured),
5.500% 01/01/01...... Aaa AAA 2,757
1,000 Tacoma, Washington, GO,
Series 1992A,
5.750% 07/01/02...... A1 A+ 1,020
2,100 Tacoma, Washington,
Sewer Revenue
Refunding, Series
1994B, (FGIC
Insured),
5.500% 12/01/03...... Aaa AAA 2,158
3,500 Washington State, GO
Refunding, Series
1991R-92A,
6.400% 09/01/03...... Aa1 AA+ 3,591
1,000 Washington State, GO
Refunding, Series
1991R-92B,
6.500% 09/01/04...... Aa1 AA+ 1,027
3,000 Washington State, GO
Refunding, Series
1992R-92C,
5.600% 09/01/01...... Aa1 AA+ 3,032
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$10,000 Washington State, GO
Refunding, Series
1993R-93B,
5.125% 10/01/04...... Aa1 AA+ $ 10,185
6,645 Washington State, GO
Refunding, Series
1997R-98A,
5.000% 07/01/15...... Aa1 AA+ 6,337
900 Washington State, GO,
Series 1992-93A,
5.250% 10/01/00...... Aa1 AA+ 900
3,260 Washington State, GO,
Series 1997E,
5.000% 07/01/22...... Aa1 AA+ 2,955
2,500 Washington State,
Public Power Supply
System Revenue
Refunding, (Nuclear
Project Number 1)
Series 1996A,
(AMBAC Insured),
6.000% 07/01/05...... Aaa AAA 2,630
7,500 Washington State,
Public Power Supply
Systems Revenue
Refunding, Series
1990C, (FGIC
Insured),
7.000% 07/01/01...... Aaa AAA 7,637
2,000 Washington State,
Public Power Supply
Systems Revenue
Refunding, Series
1991A,
6.500% 07/01/03...... Aa1 AA- 2,066
1,150 Washington State,
Public Power Supply
Systems Revenue
Refunding, Series
1993A,
5.800% 07/01/07...... Aa1 AA- 1,211
3,000 Washington State,
Public Power Supply
Systems Revenue
Refunding, Series
1993B, (FSA Insured),
5.400% 07/01/05...... Aaa AAA 3,083
8,000 Washington State,
Public Power Supply
Systems Revenue
Refunding, Series
1996A, (AMBAC
Insured),
5.500% 07/01/04...... Aaa AAA 8,223
2,000 Yakima County,
Washington, School
District Number 7,
GO, Series 1994,
(MBIA Insured),
5.500% 12/01/03...... Aaa AAA 2,053
----------
89,470
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 29
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WISCONSIN -- 3.3%
$ 5,000 Kaukauna, Wisconsin,
PCR, Refunding,
(International Paper
Project) Series
1997A,
5.150% 07/01/06...... Baa1 BBB+ $ 4,918
5,790 Milwaukee, Wisconsin,
Metropolitan Sewer
District, GO
Refunding, Series
1997A,
5.125% 10/01/16...... Aa1 AA+ 5,544
1,250 Milwaukee, Wisconsin,
Metropolitan Sewer
District, GO, Series
1990A,
6.700% 10/01/00...... Aa1 NR 1,250
5,000 Milwaukee, Wisconsin,
Metropolitan Sewer
District, GO, Series
1990A,
6.700% 10/01/01...... Aa1 NR 5,113
3,070 Sun Prairie, Wisconsin,
Area School District,
GO, Promissory Notes,
Series 1996, (FGIC
Insured, Escrowed to
Maturity),
5.500% 04/01/03...... Aaa AAA 3,139
3,000 Wisconsin State, GO
Refunding, Series
1993-1,
5.100% 11/01/01...... Aa2 AA 3,022
1,000 Wisconsin State, GO
Refunding, Series
1995-2,
5.200% 11/01/07...... Aa2 AA 1,018
4,745 Wisconsin State, GO,
Series 1996A,
5.000% 05/01/16...... Aa2 AA 4,489
8,000 Wisconsin State,
Petroleum Revenue,
Series 2000A,
5.750% 07/01/08...... Aa3 AA- 8,426
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WISCONSIN -- (CONTINUED)
$ 2,735 Wisconsin, Housing and
Economic Development
Authority, Revenue,
Series 1997G,
5.350% 03/01/12...... Aa2 AA $ 2,725
----------
39,644
----------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $1,160,031).................... 1,165,336
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.1%
(Cost $896)
896 Nations Municipal Reserves#........ $ 896
----------
TOTAL INVESTMENTS
(Cost $1,160,927*)........ 98.5% 1,166,232
----------
OTHER ASSETS AND LIABILITIES
(NET)..................... 1.5%
Receivable for investment
securities sold.................. $ 6,435
Receivable for Fund shares sold.... 311
Interest receivable................ 19,555
Payable for Fund shares redeemed... (656)
Investment advisory fee payable.... (235)
Administration fee payable......... (196)
Shareholder servicing and
distribution fees payable........ (6)
Distributions payable.............. (4,632)
Payable for investment securities
purchased........................ (2,330)
Accrued Trustees'/Directors' fees
and expenses..................... (26)
Accrued expenses and other
liabilities...................... (153)
----------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................ 18,067
----------
NET ASSETS.................. 100.0% $1,184,299
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 30
NATIONS FUNDS
Nations Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment
income........................... $ 792
Accumulated net realized loss on
investments sold................. (1,813)
Net unrealized appreciation of
investments...................... 5,305
Paid-in capital.................... 1,180,015
----------
NET ASSETS......................... $1,184,299
==========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($1,163,651,084 / 118,009,901
shares outstanding).............. $9.86
=====
INVESTOR A SHARES:
Net asset value and redemption
price per share
($17,573,830 / 1,782,377 shares
outstanding)..................... $9.86
=====
Maximum sales charge............... 3.25%
Maximum offering price per share... $10.19
INVESTOR B SHARES:
Net asset value and offering price
per share** ($2,548,303 / 258,469
shares outstanding).............. $9.86
=====
INVESTOR C SHARES:
Net asset value and offering price
per share** ($525,820 / 53,323
shares outstanding).............. $9.86
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $5,305 on
investment securities was comprised of gross appreciation of $20,952 and
gross depreciation of $15,647 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $1,160,927.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
Nations Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
MBIA 10.75%
AMBAC 10.10%
Nations Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 30.30%
Hospital Revenue 10.68%
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 31
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.7%
ALABAMA -- 3.4%
$ 2,000 Birmingham, Alabama, GO
Refunding, Series
1992B,
6.250% 04/01/12........ Aa3 AA $ 2,081
3,000 Butler County, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(James River
Corporation of Virginia
Project) Series 1994,
AMT,
8.000% 09/01/28........ NR BBB 3,182
7,210 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue
Refunding, (Champion
International
Corporation Project)
Series 1997, AMT,
5.750% 11/01/27........ Baa1 NR 6,576
2,400 Daphne, Alabama, Special
Care Facilities
Financing Authority,
Revenue, (Presbyterian
Retirement Corporation
Project) Series 1988A,
Prerefunded
08/15/01 @ 100,
7.300% 08/15/18........ NR NR 2,455
1,100 Huntsville, Alabama, GO,
Series 1995A,
5.750% 02/01/14........ Aa2 AA 1,124
3,600 Jefferson County,
Alabama, Sewer Revenue
Refunding, Series
1997A, (FGIC Insured),
5.625% 02/01/18........ Aaa AAA 3,604
2,000 Jefferson County,
Alabama, Sewer Revenue
Refunding, Series
1997A, (FGIC Insured),
5.625% 02/01/22........ Aaa AAA 1,981
1,000 Mcintosh, Alabama,
Industrial Development
Board, Environmental
Improvement Revenue,
Series 1998C,
5.375% 06/01/28........ A2 AA- 907
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ALABAMA -- (CONTINUED)
$ 1,000 Morgan County-Decatur,
Alabama, Health Care
Authority, Hospital
Revenue Refunding,
(Decatur General
Hospital Project)
Series 1994, (CONNIE
LEE Insured),
6.250% 03/01/13........ NR AAA $ 1,054
9,750 Phoenix County, Alabama,
Industrial Development
Board, Environmental
Import Revenue
Refunding, (Mead Coated
Board Project) Series
1998B, (GTY-AGMT),
5.250% 04/01/28........ A3 A- 8,720
--------
31,684
--------
ALASKA -- 2.5%
2,500 Alaska, Student Loan
Corporation, Student
Loan Revenue, Series
1999A, AMT, (AMBAC
Insured),
4.900% 07/01/08........ Aaa AAA 2,453
1,000 Anchorage, Alaska,
Electric Utilities
Revenue Refunding,
Senior Lien, Series
1993, (MBIA Insured),
8.000% 12/01/09........ Aaa AAA 1,222
7,000 Anchorage, Alaska,
Electric Utilities
Revenue, Senior Lien,
Series 1996B, (MBIA
Insured),
5.500% 02/01/26........ Aaa AAA 6,713
2,250 Anchorage, Alaska,
Telephone Utilities
Revenue Refunding,
Series 1994A, (AMBAC
Insured),
4.500% 12/01/02........ Aaa AAA 2,251
1,190 Anchorage, Alaska,
Telephone Utilities
Revenue, Series 1996A,
(MBIA Insured),
5.750% 03/01/12........ Aaa AAA 1,260
1,000 North Slope Borough,
Alaska, Capital
Appreciation GO, Series
1995A, (MBIA Insured),
5.750%(+) 06/30/06..... Aaa AAA 752
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 32
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ALASKA -- (CONTINUED)
$15,000 North Slope, Borough,
Alaska, Capital
Appreciation GO, Series
2000B, (MBIA Insured),
5.240%(+) 06/30/11..... Aaa AAA $ 8,529
--------
23,180
--------
ARIZONA -- 1.3%
3,000 Maricopa County, Arizona,
School District
Number 006, GO,
(Projects of 1996)
Series 1998, (FGIC
Insured),
4.000% 07/01/10........ Aaa AAA 2,727
1,000 Maricopa County, Arizona,
Unified School District
Number 48, GO
Refunding, Series
1991B,
6.300% 07/01/04........ Aa2 AA 1,061
1,300 Maricopa County, Arizona,
Unified School District
Number 48, GO
Refunding, Series
1993B,
4.600% 07/01/11........ Aa2 AA 1,260
3,000 Maricopa County, Arizona,
United School District
Number 48, GO,
Series 1995,
5.000% 07/01/14........ Aa2 AA 2,947
1,600 Pima County, Arizona
United School District
Number 1, GO, Series
1992D, (FGIC Insured),
6.100% 07/01/11........ Aaa AAA 1,674
5,000 Tucson and Pima County,
Arizona, Industrial
Development Authority,
Single-Family Mortgage
Revenue, Series 1983A,
5.800%+ 12/01/14....... Aaa AAA 2,289
--------
11,958
--------
ARKANSAS -- 0.5%
1,300 Arkansas State,
Development Finance
Authority, Revolving
Loan Fund, Wastewater
Systems Revenue, Series
1996A,
5.700% 12/01/12........ NR AA 1,345
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ARKANSAS -- (CONTINUED)
$ 3,425 Blytheville, Arkansas,
Solid Waste Recycling
and Sewer Treatment
Revenue, (Nucor
Corporation Project)
Series 1993, AMT,
6.375% 01/01/23........ A1 AA- $ 3,495
--------
4,840
--------
CALIFORNIA -- 3.4%
5,000 ABAG Finance Authority
for NonProfit
Corporations,
California,
Multi-Family Revenue
Refunding, Series
2000A, (GTY-AGMT),
Mandatory Put 8/15/08 @
100,
6.400% 08/15/30........ Baa2 BBB 5,126
2,000 ABAG Finance Authority
for NonProfit
Corporations,
California,
Multi-Family Revenue
Refunding, Series
2000B, (GTY-AGMT),
Mandatory Put 8/15/08 @
100,
6.250% 08/15/30........ Baa2 BBB 2,050
1,600 California State, GO,
Series 1983,
9.100% 11/01/01........ Aa2 AA 1,686
1,000 California State, GO,
Series 1983,
9.000% 06/01/02........ Aa2 AA 1,076
1,000 California State, GO,
Series 1983,
9.000% 10/01/03........ Aa2 AA 1,129
1,000 California State, GO,
Series 1983,
9.000% 04/01/05........ NR AA 1,183
1,000 California State, GO,
Series 1984,
9.100% 10/01/02........ Aa2 AA 1,091
1,000 California State, GO,
Series 1989,
7.200% 04/01/05........ Aa2 AA 1,115
1,600 California State, GO,
Series 1989,
7.100% 03/01/07........ Aa2 AA 1,838
4,000 California State, GO,
Series 1990,
7.000% 08/01/04........ Aa2 AA 4,378
3,300 California State, GO,
Series 1990,
7.000% 08/01/05........ Aa2 AA 3,678
2,000 San Diego, California,
Public Facilities
Financing Authority,
Revenue, Series 1997B,
(FGIC Insured),
5.375% 05/15/16........ Aaa AAA 2,038
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 33
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$ 2,500 San Francisco,
California, Bay Area
Rapid Transit District,
Sales Tax Revenue
Refunding, (AMBAC
Insured),
6.750% 07/01/11........ Aaa AAA $ 2,949
2,250 San Francisco,
California, City and
County Public Utilities
Community Water
Revenue, Series 1992A,
6.000% 11/01/15........ A1 AA- 2,298
--------
31,635
--------
COLORADO -- 0.5%
1,500 Arapahoe County,
Colorado, Capital
Improvement
Transportation Federal
Highway Revenue, Series
1986E-470, Prerefunded
08/31/05 @ 103,
6.900% 08/31/15........ Aaa AAA 1,685
2,500 Douglas County, Colorado,
Sales and Use Tax
Revenue, Series 1996,
(MBIA Insured),
5.500% 10/15/11........ Aaa AAA 2,558
--------
4,243
--------
CONNECTICUT -- 0.8%
10 Connecticut State, GO,
Series 1996A,
Prerefunded,
5.300% 05/15/10........ 10
990 Connecticut State, GO,
Unrefunded Balance,
Series 1996A,
5.300% 05/15/10........ 1,030
5,000 Connecticut State, Health
and Educational
Facilities Authority,
Revenue, (Eastern
Connecticut Health
Network Project) Series
2000A,
6.000% 07/01/25........ NR AA 5,031
1,015 Connecticut State,
Housing Finance
Authority, Revenue,
(Housing Mortgage
Finance Program) Series
1994A,
6.100% 05/15/13........ Aa2 AA 1,025
--------
7,096
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA
-- 3.4%
$ 9,000 District of Columbia,
Hospital Revenue
Refunding, (Medlantic
Healthcare Group
Project) Series 1997A,
(MBIA Insured),
Prerefunded
08/15/07 @ 102,
5.375% 08/15/15........ Aaa AAA $ 8,945
3,905 District of Columbia,
Revenue Refunding,
(Howard University
Project) Series 1996,
(MBIA Insured),
5.750% 10/01/12........ Aaa AAA 4,036
3,985 District of Columbia,
Revenue Refunding,
(Howard University
Project) Series 1996,
(MBIA Insured),
5.750% 10/01/17........ Aaa AAA 4,028
4,200 District of Columbia,
Revenue, (Association
of American Medical
Colleges Project)
Series 1997A, (AMBAC
Insured),
5.375% 02/15/17........ Aaa AAA 4,090
10,400 District of Columbia,
Revenue, (Carnegie
Endowment Project)
Series 1996,
5.750% 11/15/26........ Aa3 NR 10,275
--------
31,374
--------
FLORIDA -- 2.6%
1,735 Florida State, Board of
Education, Capital
Outlay GO, Unrefunded
Balance, Series 1985,
9.125% 06/01/14........ Aa2 AA+ 2,320
3,000 Florida State, Board of
Education, Public
Education Capital
Outlay, GO Refunding,
Series 1995A,
5.500% 06/01/14........ Aa2 AA+ 3,033
2,000 Jacksonville, Florida,
Electric Authority,
Revenue Refunding,
Series 1995-11,
5.375% 10/01/15........ Aa2 AA 2,001
12,000 Orange County, Florida,
Tourist Development Tax
Revenue Refunding,
Series 1998A, (AMBAC
Insured),
4.750% 10/01/24........ Aaa AAA 10,406
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 34
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 3,800 Orlando, Florida,
Utilities Commission,
Water and Electricity
Revenue Refunding,
Series 1989D,
6.750% 10/01/17........ Aa2 AA- $ 4,338
2,000 Reedy Creek, Florida, GO,
Series 1995A, (MBIA
Insured),
5.750% 06/01/15........ Aaa AAA 2,037
--------
24,135
--------
GEORGIA -- 6.2%
5,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series
2000A, (FGIC Insured),
5.600% 01/01/30(a)..... Aaa AAA 4,929
1,000 DeKalb County, Georgia,
School District GO,
Series 1993A,
6.250% 07/01/09........ Aa2 AA 1,103
3,000 Effingham County,
Georgia, Development
Authority, Solid Waste
Disposal Revenue, (Fort
James Corporation
Project) Series 1998,
AMT,
5.625% 07/01/18........ Baa2 BBB- 2,776
4,750 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Josephs Hospital
Project) Series 1994,
5.500% 10/01/18........ Aaa NR 4,752
1,600 Georgia State, GO, Series
1991C,
6.500% 04/01/04........ Aaa AAA 1,702
3,000 Georgia State, GO, Series
1992B,
6.250% 03/01/11........ Aaa AAA 3,325
3,000 Georgia State, GO, Series
1996B,
6.250% 04/01/07........ Aaa AAA 3,263
6,445 Georgia State, GO, Series
1998B,
5.500% 07/01/10........ Aaa AAA 6,787
9,965 Georgia State, Housing
and Finance Authority,
Single-Family Mortgage
Revenue, Series
1999B-2,
6.100% 06/01/31........ Aa2 AAA 10,066
1,650 Gwinnett County, Georgia,
Water and Sewer
Certificates of
Participation, Series
1991,
8.600% 08/01/03........ Aaa AAA 1,827
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 1,945 Henry County, Georgia,
School District GO,
Series 1994, (MBIA
Insured),
6.000% 08/01/14........ Aaa AAA $ 2,047
1,000 Metropolitan Atlanta,
Rapid Transit Authority
of Georgia, Revenue
Refunding, Series
1992P, (AMBAC Insured),
6.000% 07/01/04........ Aaa AAA 1,048
1,000 Metropolitan Atlanta,
Rapid Transit Authority
of Georgia, Revenue
Refunding, Series
1992P, (AMBAC Insured),
6.100% 07/01/05........ Aaa AAA 1,062
2,000 Metropolitan Atlanta,
Rapid Transit Authority
of Georgia, Revenue
Refunding, Series
1992P, (AMBAC Insured),
6.250% 07/01/20........ Aaa AAA 2,182
2,000 Monroe County, Georgia
Development Authority,
PCR, (Oglethorpe Power
Corporation Project)
Series 1992A,
6.800% 01/01/11........ A3 A 2,218
3,000 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue Refunding,
(Candler Hospital
Project) Series 1992,
Prerefunded
01/01/03 @ 102,
7.000% 01/01/23........ Ba1 BB 3,206
2,000 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue, (St. Joseph's
Hospital Project)
Series 1993,
Prerefunded 07/01/03 @
102,
6.125% 07/01/12........ A2 NR 2,114
2,690 Union County, Georgia,
Housing Authority,
Multi-Family Housing
Revenue Refunding,
(Hidden Lake Apartments
Ltd. Project) Series
1994A, (FHA/ FNMA
COLL),
7.125% 12/01/25........ Aaa NR 2,816
--------
57,223
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 35
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
HAWAII -- 0.8%
$ 4,000 Hawaii State, GO, Series
1997CN, (FGIC Insured),
6.250% 03/01/04........ Aaa AAA $ 4,201
1,180 Honolulu City and County,
Hawaii, GO Refunding,
Series 1993B,
8.000% 10/01/10........ Aa3 AA- 1,459
2,100 Maui County, Hawaii, GO
Refunding, Series 1993,
(FGIC Insured),
5.000% 09/01/03........ Aaa AAA 2,123
--------
7,783
--------
ILLINOIS -- 9.8%
1,600 Chicago, Illinois, GO,
Series 1993, (FGIC
Insured),
5.375% 01/01/13........ Aaa AAA 1,605
3,030 Chicago, Illinois,
Metropolitan Water
Reclamation District
GO, Series 1993,
5.500% 12/01/12........ Aa1 AA 3,147
3,385 Chicago, Illinois,
Metropolitan Water
Reclamation District,
Capital Improvement GO,
Series 1991,
6.900% 01/01/07........ Aa1 AA 3,768
5,000 Chicago, Illinois, O'Hare
International Airport
Special Facilities
Revenue, (United Air
Lines Project) Series
1999A,
5.350% 09/01/16........ Baa2 BB+ 4,354
13,000 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding
Second Lien, Series
1999, (AMBAC Insured),
5.500% 01/01/10........ Aaa AAA 13,341
3,000 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding,
Second Lien, Series
1993C, (MBIA Insured),
5.000% 01/01/18........ Aaa AAA 2,765
2,640 Chicago, Illinois, O'Hare
International Airport,
Revenue Refunding,
Senior Lien, Series
1993A,
5.000% 01/01/16........ A1 A+ 2,435
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 1,500 Chicago, Illinois, O'Hare
International Airport,
Special Facilities
Revenue Refunding,
(American Airlines Inc.
Project) Series 1994,
(GTY-AGMT),
8.200% 12/01/24........ Baa1 BBB- $ 1,673
5,735 Chicago, Illinois, O'Hare
International Airport,
Special Facilities
Revenue Refunding,
(United Air Lines
Project) Series 1999B,
AMT,
5.200% 04/01/11........ Baa2 BB+ 5,192
2,000 Chicago, Illinois, Park
District, GO, Series
1996, (MBIA Insured),
5.500% 01/01/16........ Aaa AAA 1,996
4,800 Chicago, Illinois, Water
Revenue, Senior Lien,
Series 2000, (AMBAC
Insured),
5.750% 11/01/10........ Aaa AAA 5,082
2,800 Cook County, Illinois,
Forest Preserve
District, Zoo GO,
Series 1996, (MBIA
Insured),
5.800% 11/01/16........ Aaa AAA 2,859
4,500 Cook County, Illinois,
GO, Series 1996, (FGIC
Insured), Prerefunded
11/15/06 @ 101,
5.900% 11/15/16........ Aaa AAA 4,821
5,000 Cook County, Illinois,
GO, Series 1997A, (MBIA
Insured),
5.625% 11/15/22........ Aaa AAA 4,947
2,900 Du Page County, Illinois,
GO, Series 1993,
5.500% 01/01/13........ Aaa AAA 2,924
2,565 Du Page County, Illinois,
GO, Series 1993,
5.600% 01/01/21........ Aaa AAA 2,580
1,000 Du Page, Illinois, Water
Commission, Revenue
Refunding, Series 1993,
5.250% 05/01/14........ Aa1 AA 989
1,765 Glendale Heights,
Illinois, Hospital
Revenue Refunding,
(Glendale Heights
Project) Series 1985B,
7.100% 12/01/15........ Aaa AAA 2,017
3,700 Illinois State, GO,
Series 1993,
5.500% 08/01/18........ Aa2 AA 3,654
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 36
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS -- (CONTINUED)
$ 2,400 Illinois State, GO,
Series 1994,
5.800% 04/01/19........ Aa2 AA $ 2,422
4,785 Illinois State, GO,
Series 1995, (MBIA
Insured),
6.000% 02/01/16........ Aaa AAA 4,947
1,645 Illinois State, Health
Facilities Authority,
Revenue, (Sherman
Health Systems Project)
Series 1997, (AMBAC
Insured),
5.500% 08/01/08........ Aaa AAA 1,706
1,500 Illinois State, Sales Tax
Revenue, Series 1994V,
6.375% 06/15/17........ Aa2 AAA 1,581
2,200 Illinois State, Sales Tax
Revenue, Series 1994V,
6.375% 06/15/20........ Aa2 AAA 2,317
1,000 Illinois, Development
Finance Authority,
PCR Refunding,
(Commonwealth Edison
Company Project) Series
1994D, (AMBAC Insured),
6.750% 03/01/15........ Aaa AAA 1,082
1,800 Illinois, Educational
Facilities Authority,
Revenue, (Northwestern
University Project)
Series 1993,
5.375% 12/01/21........ Aa1 AA+ 1,735
1,535 McHenry County, Illinois,
Community Unit School
District Number 200 GO,
Series 1996A, (FSA
Insured),
5.750% 01/01/13........ Aaa AAA 1,566
2,680 Southern Illinois,
Capital Appreciation
University Revenue,
(Housing and Auxiliary
Facilities Systems
Program) Series 1997,
(MBIA Insured),
5.100%+ 04/01/06....... Aaa AAA 2,046
--------
89,551
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA -- 3.0%
$ 2,500 Franklin, Indiana,
Economic Development
Revenue Refunding,
(Hoover Universal, Inc.
Project) Series 1994,
(GTY-AGMT),
6.100% 12/01/04........ A2 A- $ 2,618
1,000 Hamilton/Southeastern
Indiana, North Delaware
School Building
Corporation, First
Mortgage Revenue,
Series 1996, (AMBAC
Insured, State Aid
Withholding),
5.000% 07/15/07........ Aaa AAA 1,010
1,000 Hamilton/Southeastern
Indiana, North Delaware
School Building
Corporation, First
Mortgage Revenue,
Series 1996, (AMBAC
Insured, State Aid
Withholding),
5.100% 07/15/09........ Aaa AAA 1,010
6,580 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Charity
Obligation Group
Project) Series 1997D,
5.000% 11/01/26........ Aaa NR 6,615
2,000 Indiana, Health
Facilities Financing
Authority, Hospital
Revenue, (Clarian
Health Partners, Inc.
Project) Series 1996A,
5.500% 02/15/16........ Aa3 AA 1,947
2,000 Indiana, Ivy Tech State
College, Revenue,
Series 1997E, (AMBAC
Insured),
5.125% 07/01/12........ Aaa AAA 1,985
5,000 Indianapolis, Indiana,
Airport Authority,
Special Facilities
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1998, AMT,
5.500% 05/01/29........ Baa2 BBB 4,319
2,000 Indianapolis, Indiana,
Airport Authority,
Special Facilities
Revenue, (Federal
Express Corporation
Project) Series 1994,
AMT,
7.100% 01/15/17........ Baa2 BBB 2,108
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 37
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA -- (CONTINUED)
$ 2,000 St. Joseph County,
Indiana, Educational
Facilities Revenue,
(University of Notre
Dame - Du Lac Project)
Series 1996,
5.500% 03/01/26........ Aaa NR $ 1,928
4,695 St. Joseph County,
Indiana, Educational
Facilities Revenue,
(University of Notre
Dame - Du Lac Project)
Series 1997,
5.250% 03/01/21........ Aaa NR 4,427
--------
27,967
--------
IOWA -- 0.3%
2,750 Iowa, Student Loan
Liquidity Corporation,
Student Loan Revenue
Refunding, Series
1998J, AMT, (AMBAC
Insured),
4.800% 06/01/09........ Aaa AAA 2,689
--------
KANSAS -- 0.2%
2,000 Kansas City, Kansas,
Utility System
Improvement Revenue
Refunding, Series 1994,
(FGIC Insured),
6.250% 09/01/14........ Aaa AAA 2,136
--------
KENTUCKY -- 0.1%
1,000 Kentucky State, Turnpike
Authority, Economic
Development Revenue
Refunding,
(Revitalization
Project) Series 1993,
(AMBAC Insured),
5.500% 07/01/08........ Aaa AAA 1,047
--------
LOUISIANA -- 0.4%
3,500 East Baton Rouge Parish,
Louisiana, Revenue
Refunding, (Pacific
Corporation Project)
Series 1998,
5.350% 09/01/11........ Baa2 NR 3,272
--------
MAINE -- 0.1%
1,000 Maine, Health and Higher
Educational Facilities
Authority, Revenue,
Series 1996B, (State
Aid Withholding, AMBAC
Insured),
5.500% 07/01/16........ Aaa AAA 993
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- 0.3%
$ 3,000 Maryland State, Economic
Development
Corporation, Student
Housing Revenue,
(Salisbury Collegiate
Housing Project) Series
1999A,
6.000% 06/01/30........ Baa3 NR $ 2,790
--------
MASSACHUSETTS -- 1.3%
4,000 Massachusetts State,
Consolidated Loan GO,
Series 1996B, (FGIC
Insured),
5.500% 06/01/10........ Aaa AAA 4,152
2,000 Massachusetts State, GO,
Series 1995B, (AMBAC
Insured),
5.500% 07/01/15........ Aaa AAA 2,096
3,000 Massachusetts State,
Water Resources
Authority, General
Revenue, Series 1993C,
(AMBAC Insured),
5.250% 12/01/15........ Aaa AAA 2,990
2,500 Massachusetts State,
Water Resources
Authority, General
Revenue, Series 1994A,
(MBIA Insured),
5.900% 08/01/16........ Aaa AAA 2,653
--------
11,891
--------
MICHIGAN -- 3.1%
1,670 Byron Center, Michigan,
Public Schools GO,
Series 1995, (MBIA
Insured), Prerefunded
05/01/05 @ 101,
5.970% 05/01/15........ Aaa AAA 1,776
1,000 Detroit, Michigan, GO
Refunding, Series
1995B,
6.375% 04/01/07........ Baa1 A- 1,055
1,700 Hudsonville, Michigan,
Public Schools, Series
1994B, (FGIC Insured),
6.000% 05/01/14........ Aaa AAA 1,809
1,250 Kalamazoo, Michigan, City
School District, GO
Refunding, Series 1996,
(FGIC Insured),
5.650% 05/01/14........ Aaa AAA 1,320
3,000 Lakeshore, Michigan,
Public Schools, GO,
Series 1995, (MBIA
Insured),
5.750% 05/01/15........ Aaa AAA 3,054
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 38
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN -- (CONTINUED)
$ 1,000 Leslie, Michigan, Public
Schools Ingham and
Jackson County's GO
Refunding, Series 1995,
(AMBAC Insured),
6.000% 05/01/15........ Aaa AAA $ 1,065
3,000 Michigan State,
Comprehensive
Transportation Revenue
Refunding, Series
1996A, (MBIA Insured),
5.250% 08/01/13........ Aaa AAA 2,986
3,435 Michigan State,
Environmental
Protection Program GO,
Series 1992,
6.250% 11/01/12........ Aa1 AAA 3,781
7,880 Michigan State, Hospital
Finance Authority
Revenue, (Henry Ford
Health Systems Project)
Series 1999A,
6.000% 11/15/19........ A1 AA- 7,783
2,000 Michigan State, Hospital
Finance Authority,
Hospital Revenue,
(Holland Community
Hospital Project)
Series 1996, (AMBAC
Insured),
5.625% 01/01/28........ Aaa AAA 1,944
2,000 Michigan State, Trunk
Line Revenue, Series
1994A, (FGIC-TCRS
Insured), Prerefunded
11/15/04 @ 102,
5.625% 11/15/14........ Aaa AAA 2,111
--------
28,684
--------
MISSISSIPPI -- 1.1%
5,000 Adams County,
Mississippi, PCR,
(International Paper
Company Project) Series
1994A,
5.500% 12/01/05........ Baa1 BBB+ 5,033
3,000 Lowndes County,
Mississippi, Solid
Waste Disposal PCR
Refunding,
(Weyerhaeuser Company
Project) Series 1992A,
6.800% 04/01/22........ A3 A 3,301
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSISSIPPI -- (CONTINUED)
$ 2,200 Mississippi, Hospital
Equipment and
Facilities Improvement
Authority, Revenue
Refunding, (North
Mississippi Health
Services Project)
Series 1993-1, (AMBAC
Insured),
5.400% 05/15/04........ Aaa AAA $ 2,254
--------
10,588
--------
MISSOURI -- 5.4%
1,100 Belton, Missouri, GO
Refunding, Series 1995,
5.950% 03/01/15........ A3 NR 1,117
1,000 Independence, Missouri,
School District, GO,
Series 1991,
6.250% 03/01/11........ A3 NR 1,102
1,450 Jefferson City, Missouri,
School District, Series
1991A,
6.700% 03/01/11........ Aa2 NR 1,631
1,500 Kansas City, Missouri,
Water Revenue, Series
1994D,
6.600% 12/01/14........ Aa3 AA 1,613
1,600 Mehlville, Missouri,
School District Number
R9, GO Refunding,
Series 1993, (MBIA
Insured),
6.000% 02/15/13........ Aaa AAA 1,681
3,425 Missouri State,
Environmental
Improvement and Energy
Resource Authority, PCR
Refunding, (Associated
Electrical Cooperation
Thomas Hill Project)
Series 1996,
5.500% 12/01/10........ A1 AA 3,549
2,000 Missouri State,
Environmental
Improvement and Energy
Resource Authority, PCR
Refunding, (Associated
Electrical Cooperation
Thomas Hill Project)
Series 1996,
5.500% 12/01/11........ A1 AA 2,060
1,000 Missouri State,
Environmental
Improvement and Energy
Resource Authority,
State Revolving Fund,
Water PCR, (Kansas City
Project) Series 1996A,
5.750% 01/01/16........ Aaa NR 1,018
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 39
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSOURI -- (CONTINUED)
$ 1,000 Missouri State,
Environmental
Improvement and Energy
Resources Authority,
Water PCR, Series
1994A,
6.050% 07/01/15........ Aaa NR $ 1,039
4,000 Missouri State,
Environmental
Improvement and Energy
Resources Authority,
Water PCR, Series
1995C,
6.000% 01/01/16........ Aaa NR 4,136
4,065 Missouri State, GO,
Series 1995,
5.600% 04/01/15........ Aaa AAA 4,155
1,580 Missouri State, Health
and Educational
Facilities Authority,
Educational Facilities
Revenue, (St. Louis
University Project)
Series 1996, (AMBAC
Insured),
5.125% 10/01/16........ Aaa AAA 1,513
3,000 Missouri State, Health
and Educational
Facilities Authority,
Educational Facilities
Revenue, (Washington
University Project)
Series 1998A,
5.000% 11/15/37........ Aa1 AA+ 2,595
1,200 Missouri State, Health
and Educational
Facilities Authority,
Health Facilities
Revenue, (Barnes-Jewish
Inc., Christian
Project) Series 1993A,
5.200% 05/15/11........ Aa3 AA 1,202
6,000 Missouri State, Health
and Educational
Facilities Authority,
Revenue, (BJC Health
System Project) Series
1998,
5.000% 05/15/38........ Aa3 AA 5,046
1,305 Missouri State, Housing
Development Commission,
Single-Family Mortgage
Revenue, (Homeowner
Loan Project) Series
1995A, AMT,
(GNMA/FHA/VA COLL),
6.100% 09/01/14........ NR AAA 1,336
1,625 Missouri State, Water
Pollution Control GO,
Series 1995A,
5.600% 04/01/15........ Aaa AAA 1,661
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MISSOURI -- (CONTINUED)
$ 1,850 Ritenour, Missouri,
School District GO
Refunding, Series
1992A, (FGIC Insured),
6.000% 02/01/10........ Aaa AAA $ 1,898
1,600 Rolla, Missouri, School
District Number 31, GO
Refunding, Series 1994,
6.375% 03/01/14........ A NR 1,692
3,500 Sikeston, Missouri,
Electrical Revenue
Refunding, Series 1992,
(MBIA Insured),
6.100% 06/01/07........ Aaa AAA 3,767
1,000 St. Louis, Missouri,
Industrial Development
Authority, PCR
Refunding, (Anheuser
Bush Company Project)
Series 1991,
6.650% 05/01/16........ A1 A+ 1,123
1,000 Stone County, Missouri,
Reorganization School
District Number 4, GO
Refunding, Series 1995,
(MBIA Insured),
5.750% 03/01/15........ Aaa AAA 1,017
2,240 University City,
Missouri, GO, Series
1994, (MBIA Insured),
6.200% 02/15/14........ Aaa AAA 2,353
1,000 West Platte, Missouri,
School District Number
R-11, GO, Series 1995,
(MBIA Insured),
5.850% 03/01/15........ Aaa AAA 1,051
--------
49,355
--------
MONTANA -- 1.1%
8,000 Lewis and Clark County,
Montana, Environmental
Facilities Revenue,
(Asarco, Inc. Project)
Series 1998, AMT,
5.850% 10/01/33........ B3 BB 6,276
4,425 Montana State, Housing
Board Authority,
Single-Family Revenue,
Series 1999A-2, AMT,
5.750% 06/01/30........ Aa2 AA+ 4,301
--------
10,577
--------
NEBRASKA -- 0.2%
1,600 Omaha, Nebraska, Public
Power District,
Electric Revenue,
Series 1992B,
6.200% 02/01/17........ Aa2 NR 1,727
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 40
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEVADA -- 1.7%
$ 3,000 Las Vegas and Clark
County, Nevada, Library
District GO, Series
1993, (FGIC Insured),
6.000% 02/01/12........ Aaa AAA $ 3,105
3,585 Nevada State, GO, Series
1994,
5.875% 09/01/12........ Aa2 AA 3,777
4,000 Nevada State, GO, Series
1995A,
5.500% 11/01/16........ Aa2 AA 3,979
2,625 Nevada State, GO, Series
1995A,
5.500% 11/01/17........ Aa2 AA 2,596
2,000 Nevada State, Municipal
Board GO, (Bank Project
Number 40-41) Series
1993A,
6.375% 12/01/17........ NR AAA 2,081
--------
15,538
--------
NEW JERSEY -- 0.7%
2,500 New Jersey State, GO,
Series 1986B,
6.250% 01/15/05........ Aa1 AA+ 2,663
1,015 New Jersey State, Highway
Authority, Garden State
Parkway Generated
Revenue, Series 1971,
6.500% 01/01/11........ Aaa AAA 1,094
2,885 New Jersey, Financing
Authority, Health Care
Facilities Revenue,
(Riverwood Center Inc.
Project) Series 1991A,
(FSA Insured),
Prerefunded
07/01/01 @ 102,
9.900% 07/01/21........ Aaa AAA 3,056
--------
6,813
--------
NEW MEXICO -- 0.2%
1,925 New Mexico, Mortgage
Finance Authority,
Single-Family Mortgage
Revenue, Series
1997C-2, AMT,
(GNMA/FNMA/FHLMC COLL),
6.050% 07/01/28........ Aaa NR 1,909
--------
NEW YORK -- 1.4%
2,000 Municipal Assistance
Corporation for New
York City, New York,
Revenue, Series 1996E,
5.200% 07/01/08........ Aa2 AA 2,048
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK -- (CONTINUED)
$ 1,250 New York City, New York,
Municipal Water Finance
Authority, Water and
Sewer Systems Revenue,
Series 1997B,
5.750% 06/15/29........ Aa3 AA $ 1,250
1,000 New York State, Dormitory
Authority, Revenue,
(Canisius College
Project) Series 1995,
(CAPMAC SURETY BOND),
5.300% 07/01/08........ Aaa AAA 1,027
4,000 New York State, Energy
Research and
Development Authority,
Facilities Revenue
Refunding,
(Consolidated Edison
Company Project) Series
1995A,
6.100% 08/15/20........ A1 A+ 4,086
2,390 New York State, Local
Government Assistance
Corporation, Revenue,
Series 1995A,
6.000% 04/01/16........ A3 AA- 2,469
610 New York State, Local
Government Assistance
Corporation, Revenue,
Series 1995A,
Prerefunded,
6.000% 04/01/16........ A3 AA- 655
1,750 New York, New York, City
Municipal Water
Financing Authority,
Water and Sewer Systems
Revenue, Series 1998D,
4.750% 06/15/12........ Aa3 AA 1,680
--------
13,215
--------
NORTH CAROLINA -- 0.7%
2,425 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Revenue Refunding,
(Champion International
Corporation Project)
Series 1999,
6.400% 11/01/24........ Baa1 NR 2,452
2,500 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Carolina
Medicorp, Inc. Project)
Series 1996,
5.250% 05/01/26........ A1 AA- 2,290
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 41
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$ 2,000 University of North
Carolina, Chapel Hill,
University Revenue
Refunding, Series 1996,
5.000% 02/15/29........ Aa3 AA $ 1,746
--------
6,488
--------
OHIO -- 4.2%
1,500 Akron/Bath/Copley, Ohio,
Joint Township Hospital
District, Revenue,
(Summa Hospital
Project) Series 1998A,
5.375% 11/15/18........ Baa1 NR 1,242
4,990 Dayton, Ohio, Special
Facilities Revenue
Refunding, (Air Freight
Corporation Project)
Series 1993F,
6.050% 10/01/09........ NR BBB 5,053
10,500 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight
Corporation Project)
Series 1988D, AMT,
6.200% 10/01/09........ NR BBB 10,636
3,025 Lakota, Ohio, School
District GO, Series
1994, (AMBAC Insured),
6.250% 12/01/14........ Aaa AAA 3,254
1,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project) Series 1993,
Prerefunded
12/01/04 @ 101,
6.125% 12/01/13........ NR NR 1,060
10,000 Montgomery County, Ohio,
Hospital Revenue,
Series 1999,
6.750% 04/01/22........ Baa1 BBB+ 9,757
9,155 Ohio State, Solid Waste
Disposal, Revenue, (USG
Corporation Project)
Series 1997, AMT,
5.600% 08/01/32........ Baa1 NR 8,107
--------
39,109
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OKLAHOMA -- 0.5%
$ 2,770 Oklahoma State,
Industrial Authority,
Hospital Revenue,
(Deaconess Health Care
Project) Series 1997A,
5.750% 10/01/17........ Baa2 BBB $ 2,344
3,000 Oklahoma, Development
Finance Authority,
Revenue Refunding,
(Hillcrest Healthcare
Center Inc. Project)
Series 1999A,
5.000% 08/15/08........ Ba1 BB+ 2,563
--------
4,907
--------
OREGON -- 0.2%
2,000 Chemeketa, Oregon,
Community College
District, GO, Series
1996, (FGIC Insured),
Prerefunded 06/01/06 @
100,
5.800% 06/01/12........ Aaa AAA 2,115
--------
PENNSYLVANIA -- 1.6%
1,000 Allegheny County,
Pennsylvania, Hospital
Development Authority,
Revenue, (Health
Systems Project) Series
2000B,
8.650% 11/15/05........ B1 B+ 988
3,480 Butler, Pennsylvania,
Area School District,
State Aid Withholding
GO, Series 1997, (FGIC
Insured), Prerefunded
11/15/07 @ 44.73,
4.510%(+) 11/15/21..... Aaa NR 1,098
2,605 Pennsylvania State,
Higher Educational
Facilities Authority,
Revenue, Series 1994,
(AMBAC Insured),
5.625% 06/15/19........ Aaa AAA 2,600
1,725 Philadelphia,
Pennsylvania, Hospital
and Higher Education
Facilities Authority,
Hospital Revenue,
(Frankford Hospital
Project) Series 1993A,
6.000% 06/01/14........ A3 NR 1,774
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 42
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
$ 3,125 Philadelphia,
Pennsylvania, Hospital
and Higher Education
Facilities Authority,
Hospital Revenue,
(Frankford Hospital
Project) Series 1993A,
6.000% 06/01/23........ A3 NR $ 3,159
4,800 Philadelphia,
Pennsylvania,
Industrial Development
Authority, IDR
Refunding, (Ashland Oil
Inc. Project) Series
1993,
5.700% 06/01/05........ Baa2 NR 4,869
--------
14,488
--------
RHODE ISLAND -- 0.3%
2,845 Rhode Island State,
Consolidated Capital
Development Loan GO,
Series 1996A, (MBIA
Insured),
5.600% 08/01/10........ Aaa AAA 2,966
--------
SOUTH CAROLINA -- 1.8%
5,000 Georgetown County, South
Carolina, Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A, (GTY-AGMT),
5.950% 03/15/14........ Baa1 BBB+ 5,083
1,780 South Carolina, State
Housing Finance and
Development Authority,
Revenue, (Homeownership
Mortgage Purchase
Project) Series 1994A,
6.375% 07/01/16........ Aa2 AA 1,842
3,500 South Carolina, State
Public Services
Authority, Revenue
Refunding, Series
1995B, (FGIC Insured),
5.875% 01/01/19........ Aaa AAA 3,558
2,000 Spartanburg County, South
Carolina, Solid Waste
Disposal Facilities
Revenue, (BMW U.S.
Capital Corporation
Project) Series 1994,
AMT, (GTY-AGMT),
7.550% 11/01/24........ NR NR 2,121
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$ 4,450 York County, South
Carolina, Exempt
Facilities IDR,
(Hoechst Celanese
Corporation Project)
Series 1994, AMT,
5.700% 01/01/24........ Baa2 BBB $ 4,016
--------
16,620
--------
TENNESSEE -- 1.9%
6,500 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
Systems Inc. Project)
Series 1999,
5.750% 04/01/19........ Baa1 NR 5,852
3,000 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General
Motors Corporation -
Saturn Corporation
Project) Series 1994,
6.500% 09/01/24........ A2 A 3,084
2,750 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.400% 12/01/22........ Baa3 BBB 2,841
1,000 Memphis, Tennessee, GO
Refunding, Series 1996,
5.200% 11/01/10........ Aa2 AA 1,016
2,500 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Water and Sewer Revenue
Refunding, Series 1993,
(FGIC Insured),
5.200% 01/01/13........ Aaa AAA 2,513
2,000 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Water and Sewer Systems
Revenue Refunding,
Series 1996, (MBIA
Insured),
5.500% 01/01/14........ Aaa AAA 2,021
--------
17,327
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 43
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- 10.7%
$ 6,000 Alliance Airport
Authority Inc., Texas,
Special Facilities
Revenue, (American
Corporation - American
Airlines Inc. Project)
Series 1991, AMT,
7.000% 12/01/11........ Baa1 BBB- $ 6,478
2,000 Arlington, Texas,
Independent School
District, GO, Series
1991, (PSF-GTD),
6.500% 08/15/03........ Aaa NR 2,101
1,600 Austin, Texas, Utilities
System Revenue,
8.625% 11/15/12........ Aaa AAA 1,703
4,238 Austin, Texas, Utilities
System Revenue, Series
1986, Prerefunded,
7.300% 05/15/17........ Aaa AAA 4,373
95 Austin, Texas, Water
Sewer and Electric
Revenue Refunding,
Series 1982,
14.000% 11/15/01....... A2 A 100
560 Austin, Texas, Water
Sewer and Electrical
Revenue Refunding,
Unrefunded Balance,
Series 1982,
14.000% 11/15/01....... A2 A 590
2,470 Beaumont, Texas,
Independent School
District, GO, Series
1996, (PSF-GTD),
5.000% 02/15/17........ Aaa AAA 2,307
1,540 Bexar, Texas,
Metropolitan Water
District, Waterworks
Revenue, Series 1995,
(MBIA Insured),
Prerefunded 05/01/05 @
102,
6.000% 05/01/15........ Aaa AAA 1,651
2,070 Bexar, Texas,
Metropolitan Water
District, Waterworks
Revenue, Unrefunded
Balance, Series 1995,
(MBIA Insured),
6.000% 05/01/15........ Aaa AAA 2,170
1,000 Brazos River Authority,
Texas, Revenue
Refunding, (Houston
Light and Power Company
Project) Series 1992B,
(MBIA Insured),
6.375% 04/01/12........ Aaa AAA 1,048
1,540 Comal, Texas, Independent
School District GO,
Series 1996A,
(PSF-GTD),
5.600% 02/01/10........ Aaa AAA 1,586
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,275 Cypress-Fairbanks, Texas,
Independent School
District GO, Series
1995, (PSF-GTD),
Prerefunded
02/15/05 @ 100,
5.750% 02/15/16........ Aaa AAA $ 1,331
4,805 Cypress-Fairbanks, Texas,
Independent School
District GO, Unrefunded
Balance, Series 1993A,
(PSF-GTD),
5.500% 02/15/11........ Aaa AAA 4,849
1,750 Dallas County, Texas, GO,
Series 1996,
5.250% 08/15/16........ Aaa AAA 1,718
1,510 Dallas, Texas,
Independent School
District GO, Series
1995, (PSF-GTD),
5.700% 08/15/12........ Aaa AAA 1,580
6,000 Dallas-Fort Worth, Texas,
International Airport
Facilities Improvement,
Corporate Revenue
Refunding, (American
Airlines Project)
Series 2000C, AMT,
6.150% 05/01/29........ Baa1 BBB- 6,021
1,075 Denton, Texas, Utility
Systems Revenue
Refunding, Series
1996A, (MBIA Insured),
5.700% 12/01/10........ Aaa AAA 1,115
1,000 Harris County, Texas, GO,
Series 1984,
7.800% 01/01/03........ Aaa AAA 1,069
3,335 Harris County, Texas,
Health Facilities
Development Authority,
Hospital Revenue,
(Memorial Herman
Hospital Systems
Project) Series 1998,
(FSA Insured),
5.500% 06/01/11........ Aaa AAA 3,410
4,000 Harris County, Texas,
Health Facilities
Development Authority,
Hospital Revenue,
(Memorial Hospital
Systems Project) Series
1997A, (MBIA Insured),
4.875% 06/01/05........ Aaa AAA 4,023
5,000 Houston, Texas, Airport
Systems Revenue, Series
1998B, AMT, (FGIC
Insured),
5.000% 07/01/16........ Aaa AAA 4,585
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 44
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 4,000 Lower Neches Valley
Authority, Texas,
Industrial Development
Corporation, Revenue
Refunding, (Mobil Oil
Refining Corporation
Project) Series 1997,
5.800% 05/01/22........ Aaa AAA $ 3,951
5,000 Lubbock, Texas, Health
Facilities Development
Authority, Corporate
Revenue, (St. Joseph
Health Systems Project)
Series 1998, (FSA
Insured),
5.000% 07/01/07........ Aaa AAA 5,031
1,500 Lubbock, Texas, Health
Facilities Development
Corporation, Revenue,
(St. Joseph Health
Systems Project) Series
1993,
5.500% 07/01/14........ Aa3 AA- 1,501
2,000 North Central Texas,
Health Facilities
Development
Corporation, Hospital
Revenue, (Presbyterian
Healthcare Project)
Series 1991A,
6.625% 06/01/11........ Aaa NR 2,230
4,500 Port of Bay City
Authority, Texas,
Matagorda County
Revenue, (Hoechst
Celanese Corporation
Project), Series 1996,
6.500% 05/01/26........ Baa2 A+ 4,489
4,000 Red River Authority,
Texas, PCR Refunding,
Series 1991, (AMBAC
Insured),
5.200% 07/01/11........ Aaa NR 4,002
3,000 San Antonio, Texas,
Electric and Gas,
Revenue, Series 1995,
(MBIA Insured),
5.375% 02/01/18........ Aaa AAA 2,916
2,000 San Antonio, Texas, GO,
Series 1996,
5.250% 08/01/15........ Aa2 AA+ 1,958
1,720 San Antonio, Texas, Water
Revenue, Series 1992,
Prerefunded,
6.500% 05/15/10........ Aaa AAA 1,806
2,855 Spring Branch, Texas,
Independent School
District GO, Series
1995, (PSF-GTD),
6.000% 02/01/17........ Aaa AAA 2,911
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 2,000 Texas City, Texas, IDR
Refunding, (Atlantic
Richfield Company
Project) Series 1990,
7.375% 10/01/20........ Aa2 AA+ $ 2,379
5,000 Texas State, Department
of Housing and
Community Affairs,
Single-Family
Mortgage Revenue,
Series 1997A-3, AMT,
(GNMA/FNMA COLL, MBIA
Insured),
5.800% 09/01/29........ Aaa AAA 4,771
3,000 Texas State, GO
Refunding, Series
1996B,
5.750% 10/01/15........ Aa1 AAA 3,168
1,000 Texas State, GO, Series
1996,
5.500% 08/01/15........ Aa1 AA 1,004
2,000 Texas, Guadalupe Blanco
River Authority,
Revenue Refunding,
(Standard Oil Company
Project) Series 1983,
6.550% 05/01/13........ P1 NR 2,100
--------
98,025
--------
UTAH -- 2.6%
2,000 Emery County, Utah, PCR
Refunding, (Pacificorp
Project) Series 1993A,
(AMBAC Insured),
5.650% 11/01/23........ Aaa AAA 1,955
15,300 Murray City, Utah,
Hospital Revenue
Refunding, (IHC Health
Services, Inc. Project)
Series 1996, (MBIA
Insured),
5.000% 05/15/22........ Aaa AAA 13,595
1,945 Provo, Utah, Electric
Revenue, Series 1980,
10.125% 04/01/15....... Aaa AAA 2,636
3,000 Salt Lake City, Utah,
Water and Sewer
Revenue, Series 1994,
(AMBAC Insured),
Prerefunded 02/01/04 @
100,
6.100% 02/01/14........ Aaa AAA 3,140
2,500 Utah, County Hospital
Revenue, Series 1997,
(MBIA Insured),
5.250% 08/15/26........ Aaa AAA 2,289
--------
23,615
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 45
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VERMONT -- 0.2%
$ 1,985 Vermont, Municipal Bond
Bank, Revenue, Series
1996-1, (AMBAC
Insured),
5.750% 12/01/15........ Aaa AAA $ 2,038
--------
VIRGINIA -- 2.1%
2,000 Covington-Allegheny
County, Virginia, IDR
Refunding, (Westvaco
Corporation Project)
Series 1994,
6.650% 09/01/18........ A3 BBB+ 2,100
2,830 Fairfax County, Virginia,
Water Authority,
Revenue, Unrefunded
Balance, Series 1992,
6.000% 04/01/22........ Aa1 AAA 2,935
10,600 Fairfax County, Virginia,
Water Authority, Water
Revenue Refunding,
Series 1997,
5.000% 04/01/29........ Aa1 AAA 9,560
1,000 Norfolk, Virginia,
Capital Improvement GO,
Series 1997, (FGIC
Insured),
5.375% 06/01/15........ Aaa AAA 1,002
1,600 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series 1995,
(MBIA Insured),
5.700% 01/01/14........ Aaa AAA 1,618
2,000 Virginia State, Resource
Authority, Systems
Revenue Refunding,
Series 1998,
5.000% 05/01/22........ NR AA 1,825
--------
19,040
--------
WASHINGTON -- 11.0%
10,000 Chelan County,
Washington, Development
Corporation PCR
Refunding, (Alcoa, Inc.
Project) Series 1995,
5.850% 12/01/31........ A1 A+ 9,873
2,310 Chelan County,
Washington, Public
Utilities District
Division III, Revenue,
Series 1997A, AMT,
Mandatory Put
07/01/09 @ 100,
5.600% 07/01/32........ Aa2 AA 2,222
2,480 Clark County, Washington,
Sewer Revenue, Series
1996, (MBIA Insured),
5.800% 12/01/11........ Aaa AAA 2,575
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$ 1,035 King County, Washington,
Library Systems GO,
Series 1992,
6.150% 12/01/10........ Aa AA- $ 1,096
2,000 King County, Washington,
School District Number
415, GO, Series 1996,
(FSA Insured),
5.800% 06/01/13........ Aaa AAA 2,052
3,000 King County, Washington,
Sewer GO Refunding,
Series 1996C,
5.250% 01/01/17........ Aa1 AA+ 2,898
7,150 Pierce County,
Washington, Economic
Development Revenue,
(Occidental Petroleum
Corporation Project)
Series 1993, AMT,
5.800% 09/01/29........ Baa3 BBB- 6,382
2,405 Port Seattle, Washington,
GO, Series 2000, AMT,
6.000% 12/01/11........ Aa1 AA+ 2,563
1,600 Seattle, Washington, GO
Refunding, Series 1993,
5.650% 01/01/20........ Aa3 AA 1,602
4,365 Seattle, Washington, GO,
Series 1996A,
5.625% 01/15/10........ Aa1 AA+ 4,502
1,795 Seattle, Washington, GO,
Series 1997,
5.300% 08/01/17........ Aa1 AA+ 1,751
2,530 Seattle, Washington,
Municipal Light and
Power Revenue, Series
1994, Prerefunded
07/01/04 @ 102,
6.625% 07/01/16........ Aa2 AA 2,747
6,100 Seattle, Washington,
Water Systems Revenue
Refunding, Series 1993,
5.500% 06/01/18........ Aa2 AA 6,025
1,525 Skagit County,
Washington, School
District Number 320, GO
Refunding, Series 1996,
(FGIC Insured),
5.500% 12/01/12........ Aaa AAA 1,550
2,000 Tacoma, Washington
Conservation Systems
Project Revenue, Series
1994,
6.600% 01/01/15........ Aa1 AA- 2,119
2,000 Tacoma, Washington,
Electric System
Revenue, Series 1997,
(AMBAC Insured),
5.250% 01/01/15........ Aaa AAA 1,962
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 46
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- (CONTINUED)
$12,700 Washington State, GO,
Series 1990A,
6.750% 02/01/15........ Aa1 AA+ $ 14,573
3,000 Washington State, GO,
Series 1992-93A,
5.750% 10/01/12........ Aa1 AA+ 3,179
1,155 Washington State, GO,
Series 1992A,
6.250% 02/01/11........ Aa1 AA+ 1,266
17,845 Washington State, GO,
Series 2000A,
5.625% 07/01/21........ Aa1 AA+ 17,704
3,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1993B, (FSA
Insured),
5.400% 07/01/05........ Aaa AAA 3,083
5,000 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1996A, (MBIA
Insured),
5.750% 07/01/11........ Aaa AAA 5,196
1,400 Washington State, Public
Power Supply Systems
Revenue, (Nuclear
Project Number 1)
Series 1990,
7.250% 07/01/09........ Aa1 AA- 1,568
200 Washington State, Public
Power Supply Systems
Revenue, (Nuclear
Project Number 1),
14.375% 07/01/01....... Aaa AAA 214
1,600 Washington State, Public
Power Supply Systems
Revenue, (Nuclear
Project Number 2)
Series 1990,
7.250% 07/01/06........ Aa1 AA- 1,794
--------
100,496
--------
WEST VIRGINIA -- 0.5%
1,450 Jefferson County, West
Virginia, Board of
Education, GO, Series
1989, (FGIC Insured),
6.850% 07/01/07........ Aaa AAA 1,622
1,560 Jefferson County, West
Virginia, Board of
Education, GO, Series
1989, (FGIC Insured),
6.850% 07/01/08........ Aaa AAA 1,765
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WEST VIRGINIA --
(CONTINUED)
$ 1,000 West Virginia University,
State University
Systems Revenue,
(Marshall University
Library Project) Series
1996, (AMBAC Insured),
5.750% 04/01/16........ Aaa AAA $ 1,015
--------
4,402
--------
WISCONSIN -- 3.2%
3,000 Menomonee Falls,
Wisconsin, Sewer
Systems Revenue, Series
1996A, (AMBAC Insured),
5.650% 05/01/16........ Aaa AAA 3,022
6,000 Nekoosa, Wisconsin, PCR,
(Nekoosa Papers Inc.
Project) Series 1999B,
5.500% 07/01/15........ Baa NR 5,581
2,850 Wisconsin State, Clean
Water Revenue, Series
1997-1,
5.500% 06/01/15........ Aa AA+ 2,969
1,000 Wisconsin State, GO
Refunding, Series
1993-1,
5.800% 11/01/08........ Aa2 AA 1,066
11,000 Wisconsin State, Health
and Educational
Facilities Authority,
Revenue, (Aurora Health
Care Inc. Project)
Series 1999A,
5.600% 02/15/29........ NR BBB+ 9,165
3,500 Wisconsin State, Health
and Educational
Facilities Authority,
Revenue, (Aurora Health
Care Project) Series
1999B,
5.500% 02/15/15........ NR BBB+ 3,068
5,500 Wisconsin, State Health
and Educational
Facilities Authority,
Revenue, (Aurora Health
Care Project) Series
1999B,
5.625% 02/15/20........ NR BBB+ 4,733
--------
29,604
--------
WYOMING -- 1.4%
2,300 Campbell County, Wyoming,
School District Number
001 Gillette, GO,
Series 1996, (SCH BD
GTY),
5.550% 06/01/06........ Aaa AAA 2,383
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 47
NATIONS FUNDS
Nations Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WYOMING -- (CONTINUED)
$10,000 Wyoming, Student Loan
Corporation, Revenue
Refunding, Series
1999A,
6.250% 06/01/29........ NR AA $ 10,378
--------
12,761
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $885,899)........................ 909,894
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.1%
(Cost $975)
975 Nations Municipal Reserves#........... 975
--------
TOTAL INVESTMENTS
(Cost $886,874*)............. 98.8% 910,869
--------
OTHER ASSETS AND
LIABILITIES (NET)............ 1.2%
Cash.................................. $ 2
Receivable for investment securities
sold................................ 1,141
Receivable for Fund shares sold....... 299
Interest receivable................... 15,491
Payable for Fund shares redeemed...... (1,289)
Investment advisory fee payable....... (257)
Administration fee payable............ (153)
Shareholder servicing and distribution
fees payable........................ (15)
Distributions payable................. (3,857)
Payable for investment securities
purchased........................... (184)
Accrued Trustees'/Directors' fees and
expenses............................ (26)
Accrued expenses and other
liabilities......................... (108)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... 11,044
--------
NET ASSETS..................... 100.0% $921,913
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 931
Accumulated net realized loss on
investments sold.................... (3,784)
Net unrealized appreciation of
investments......................... 23,995
Paid-in capital....................... 900,771
--------
NET ASSETS............................ $921,913
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($878,060,450 / 81,356,617 shares
outstanding)........................ $10.79
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($34,035,672 / 3,154,381
shares outstanding)................. $10.79
======
Maximum sales charge.................. 4.75%
Maximum offering price per share...... $11.33
INVESTOR B SHARES:
Net asset value and offering price per
share** ($8,558,272 / 793,101 shares
outstanding)........................ $10.79
------
------
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,259,085 / 116,661 shares
outstanding)........................ $10.79
------
------
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $23,995 on
investment securities was comprised of gross appreciation of $33,645 and
gross depreciation of $9,650 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $885,899.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Municipal Income Fund had the following insurance concentration greater
than 10% at September 30, 2000 (as a percentage of net assets):
MBIA 14.10%
Nations Municipal Income Fund had the following industry concentration greater
than 10% at September 30, 2000 (as a percentage of net assets):
General Obligations 26.41%
Industrial Development Revenue/
Pollution Control Revenue 18.16%
Hospital Revenue 11.09%
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 48
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 99.8%
CALIFORNIA -- 94.1%
$2,000 ABAG Finance Authority
for NonProfit
Corporations,
California,
Multi-Family Revenue
Refunding, Series
2000A, (GTY-AGMT),
Mandatory Put 8/15/08 @
100,
6.400% 08/15/30........ Baa2 BBB $ 2,050
660 ABAG Finance Corporation,
California,
Certificates of
Participation, (ABAG
XXVI Project) Series
1992A, 6.250%
06/01/11............... NR A 675
3,000 Alameda County,
California,
Certificates of
Participation,
Refunding, (Santa Rita
Jail Project) Series
1993, (MBIA Insured),
5.700% 12/01/14........ Aaa AAA 3,129
5,000 Beverly Hills,
California, Public
Financing Authority,
Lease Revenue, (Capital
Imports Project) Series
1998A,
5.000% 06/01/23........ Aa3 AA- 4,690
1,185 Bodega Bay, California,
Fire Protection
District, Certificates
of Participation, (Fire
Station Project) Series
1996,
6.450% 10/01/31........ NR BBB- 1,219
1,000 California Health
Facilities Financing
Authority, Revenue
Refunding, (Adventist
Health Project) Series
1991A, (MBIA Insured),
7.000% 03/01/13........ Aaa AAA 1,031
1,000 California Health
Facilities Financing
Authority, Revenue,
(Adventist Health
Systems/Sunbelt West
Project) Series 1991B,
(MBIA Insured),
6.500% 03/01/07........ Aaa AAA 1,029
1,500 California Health
Facilities Financing
Authority, Revenue,
(Cedars-Sinai Medical
Center) Series 1999A,
6.125% 12/01/19........ A2 NR 1,530
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$3,000 California Health
Facilities Financing
Authority, Revenue,
(Kaiser Permanente
Project) Series 1998A,
(FSA Insured),
5.000% 06/01/24........ Aaa AAA $ 2,776
2,000 California Housing
Finance Agency, Home
Mortgage Revenue,
Series 1994F-3, AMT,
(MBIA/FHA/VA Insured),
6.100% 08/01/15........ Aaa AAA 2,023
2,750 California Housing
Finance Agency, Home
Mortgage Revenue,
Series 1997I, AMT,
(MBIA Insured),
5.650% 08/01/17........ Aaa AAA 2,786
3,000 California Housing
Finance Agency, Home
Mortgage Revenue,
Series 1997I, AMT,
(MBIA Insured),
5.750% 02/01/29........ Aaa AAA 3,000
2,050 California Housing
Finance Agency,
Single-Family Mortgage
Revenue, Series
1997B-3, Class I, AMT,
(FHA Insured),
5.400% 08/01/28........ Aaa AAA 1,975
1,000 California Pollution
Control Financing
Authority, PCR,
(Pacific Gas and
Electric Company
Project) Series 1992A,
AMT,
6.625% 06/01/09........ A1 AA- 1,049
1,000 California Pollution
Control Financing
Authority, PCR,
(Southern California
Edison Company Project)
Series 1992B, AMT,
6.400% 12/01/24........ A1 A+ 1,029
4,500 California State,
Department of Water
Resources, Water
Systems Revenue,
(Center Valley Project)
Series 1993L,
5.700% 12/01/16........ Aa2 AA 4,601
2,000 California State,
Department of Water
Resources, Water
Systems Revenue,
(Center Valley Project)
Series 1997S,
5.000% 12/01/17........ Aa2 AA 1,955
2,600 California State, GO,
Series 1995, (FGIC-TCRS
Insured),
5.250% 10/01/17........ Aaa AAA 2,603
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 49
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$2,000 California State, GO,
Series 2000,
5.250% 09/01/24........ Aa2 AA $ 1,939
3,000 California State, GO
Series 2000,
5.625% 05/01/26........ Aa2 AA 3,032
4,000 California State, Public
Works Board, Lease
Revenue, (Department of
Corrections State
Prison Project) Series
1993E,
5.500% 06/01/19........ Aa3 AA- 4,022
3,000 California, Statewide
Communities Development
Authority, Apartment
Development Revenue
Refunding, (Irvine
Apartment Communities
Project) Series
1998A-4,
5.250% 05/15/25........ Baa2 BBB 2,887
3,000 California, Statewide
Communities Development
Authority, Revenue
Certificates of
Participation, (John
Muir/Mount Diablo
Health Systems Project)
Series 1997, (MBIA
Insured),
5.125% 08/15/17........ Aaa AAA 2,959
1,615 Central Valley Financing
Authority, California,
Cogeneration Project
Revenue Refunding,
(Carson Ice-General
Project) Series 1998,
(MBIA Insured),
5.250% 07/01/12........ Aaa AAA 1,675
3,000 Central Valley,
California, Financing
Authority Revenue,
(Carson Ice Project)
Series 1993,
6.000% 07/01/09........ NR BBB 3,104
1,185 Chino, California,
Unified School
District, Certificates
of Participation, (Land
Acquisition Project)
Series 1994A, (FSA
Insured),
6.600% 09/01/14........ Aaa AAA 1,208
1,250 Del Mar, California, Race
Track Authority,
Revenue Refunding,
Series 1996,
6.000% 08/15/06........ NR NR 1,282
1,200 Del Mar, California, Race
Track Authority,
Revenue Refunding,
Series 1996,
6.000% 08/15/08........ NR NR 1,224
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,000 Del Mar, California, Race
Track Authority,
Revenue Refunding,
Series 1996,
6.200% 08/15/11........ NR NR $ 1,027
3,000 East Bay Municipal
Utilities District,
California, Water
Systems Revenue
Refunding, Series 1996,
(FGIC Insured),
5.000% 06/01/16........ Aaa AAA 2,958
1,000 Eastern Municipal Water
District, California,
Water and Sewer
Certificates of
Participation, Series
1991, (FGIC Insured),
6.750% 07/01/12........ Aaa AAA 1,184
1,500 Elsinore Valley Municipal
Water District,
California,
Certificates of
Participation
Refunding, Series
1992A, (FGIC Insured),
6.000% 07/01/12........ Aaa AAA 1,677
925 Emeryville, California,
Public Financing
Authority, Revenue,
Unrefunded Balance,
(Redevelopment Project)
Series 1993A,
6.500% 05/01/21........ NR A- 953
1,500 Escondido JT Powers
Financing Authority,
California, Lease
Revenue, (California
Center for the Arts
Project) Series 1995,
(AMBAC Insured),
6.000% 09/01/18........ Aaa AAA 1,597
1,000 Foothill/Eastern Corridor
Agency, California,
Toll Road Revenue
Refunding, Series 1999,
5.750% 01/15/40........ Baa3 BBB- 976
2,000 Foothill/Eastern Corridor
Agency, California,
Toll Road Revenue
Refunding, Series 1999,
(MBIA Insured),
5.125% 01/15/15........ Aaa AAA 2,016
3,000 Foothill/Eastern Corridor
Agency, California,
Toll Road Revenue, Sr
Lien, Series 1995A,
Prerefunded 01/01/10 @
100,
6.000% 01/01/16........ Aaa AAA 3,333
1,965 Fremont, California,
Public Financing
Authority, Revenue,
(Local Improvement
District 39R Project)
Series 1996,
6.000% 09/01/11........ NR NR 2,009
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 50
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$5,000 Fresno, California, Sewer
Revenue, Series
1993A-1, (AMBAC
Insured),
6.250% 09/01/14........ Aaa AAA $ 5,702
1,000 Industry California Urban
Development Agency, Tax
Allocation Refunding,
(Transportation
Distribution Project)
Series 1992-3,
6.900% 11/01/16........ NR A- 1,050
2,000 Inland Empire,
California, Solid Waste
Authority, Revenue,
(Landfill Improvement
Financing Project)
Series 1996B, AMT, (FSA
Insured),
6.250% 08/01/11........ Aaa AAA 2,224
3,050 Larkspur, California,
School District GO,
Series 2000A,
5.250% 08/01/25........ Aa3 AA 2,955
2,500 Los Angeles County,
California,
Transportation
Commission, Sales Tax
Revenue, Refunding,
Series 1991B,
6.500% 07/01/13........ A1 AA- 2,587
3,000 Los Angeles, California,
Convention and
Exhibition Center
Authority, Lease
Revenue Refunding,
Series 1993A, (MBIA-IBC
Insured),
6.000% 08/15/10........ Aaa AAA 3,343
2,000 Los Angeles, California,
GO, Series 1999B,
5.250% 09/01/14........ Aa2 AA 2,045
2,000 Los Angeles, California,
Harbor Development
Revenue, Series 1995B,
AMT,
6.625% 08/01/25........ Aa3 AA 2,100
3,750 Los Angeles, California,
Parking Revenue, Series
1999A, (AMBAC Insured),
5.250% 05/01/29........ Aaa AAA 3,610
2,000 Manhattan Beach,
California, Unified
School District,
Certificates of
Participation, Series
1995B, (MBIA Insured),
6.500%+ 08/01/20##..... Aaa AAA 2,180
3,000 Metropolitan Water
District of Southern
California, Waterworks
Revenue Refunding,
Series 1993A,
5.750% 07/01/21........ Aa2 AA 3,134
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,000 Natomas, California,
Unified School
District, GO, Series
1993A, (MBIA Insured),
5.750% 09/01/17........ Aaa AAA $ 1,014
2,500 Northridge Water
District, California,
Revenue Certificates of
Participation, Series
1996, (AMBAC Insured),
5.250% 02/01/18........ Aaa AAA 2,494
1,000 Oakland, California,
State Building
Authority, Lease
Revenue, (Elihu M.
Harris Project) Series
1998A, (AMBAC Insured),
5.000% 04/01/17........ Aaa AAA 977
2,500 Orange County,
California, Airport
Revenue Refunding,
Series 1997, AMT, (MBIA
Insured),
5.500% 07/01/10........ Aaa AAA 2,624
2,500 Pasadena, California,
Community Development
Commission,
Multi-Family Housing
Revenue, (Civic Center
Project) Series 1991A,
AMT, (FSA Insured),
6.400% 12/01/12........ Aaa AAA 2,559
5,000 Port Oakland, California,
Port Revenue Refunding,
Series 1997H, AMT,
(MBIA Insured),
5.500% 11/01/15........ Aaa AAA 5,111
2,500 Poway, California,
Certificates of
Participation
Refunding, (Poinsettia
Mobilehome Park
Project) Series 1992,
(FSA Insured),
6.375% 06/01/18........ Aaa AAA 2,621
2,000 Rancho, California, Water
District, Financing
Authority, Revenue
Refunding, Series 1995,
(FGIC Insured),
5.900% 11/01/15........ Aaa AAA 2,113
2,000 Sacramento County,
California, Sanitation
District Financing
Authority, Revenue,
Series 1993,
4.750% 12/01/23........ Aaa AA 1,842
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 51
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$2,900 Sacramento, California,
Power Authority
Revenue, (Cogeneration
Project) Series 1995,
5.875% 07/01/15........ NR BBB- $ 2,972
2,000 San Diego, California,
Convention Center
Expansion Financing
Authority, Lease
Revenue, Series 1998A,
(AMBAC Insured),
4.750% 04/01/28........ Aaa AAA 1,763
2,000 San Diego, California,
Special Tax, Community
Facilities District No.
1 Series 1995B,
Prerefunded 09/01/05 @
102,
7.000% 09/01/15........ NR NR 2,272
1,450 San Francisco City and
County Airports
Commission, California,
International Airport
Revenue, Series 1993-2,
Unrefunded Balance,
(MBIA Insured),
6.750% 05/01/13........ Aaa AAA 1,558
3,000 San Francisco,
California, City and
County Airport
Commission,
International Airport
Revenue, Series
1996-2-10A, AMT, (MBIA
Insured),
5.700% 05/01/26........ Aaa AAA 3,019
1,750 San Joaquin County,
California,
Certificates of
Participation, (Capital
Facilities Project)
Series 1993, (MBIA
Insured),
5.500% 11/15/13........ Aaa AAA 1,873
3,000 San Joaquin Hills,
California,
Transportation Corridor
Agency, Toll Road
Revenue Refunding,
Capital Appreciation,
Series 1997A,
5.600%+ 01/15/16....... Baa3 BBB- 1,939
3,670 San Jose Redevelopment
Agency, California, Tax
Allocation, (Merged
Area Redevelopment
Project) Series 1993,
(MBIA Insured),
6.000% 08/01/15........ Aaa AAA 4,076
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
3,000 San Jose, California,
Financing Authority
Revenue, (Convention
Center Refunding
Project) Series 1993C,
6.400% 09/01/17........ Aa3 A+ 3,092
$2,000 San Mateo County,
California, JT Powers
Authority, Lease
Revenue, (Capital
Project) Series 1997A,
(FSA Insured),
5.125% 07/15/32........ Aaa AAA $ 1,877
1,000 Southern California Rapid
Transit District,
Certificates of
Participation, (Workers
Compensation Fund
Project) Series 1990,
(MBIA Insured),
6.000% 07/01/10........ Aaa AAA 1,029
1,000 Southern California,
Public Power Authority,
Power Revenue, Series
1989,
6.750% 07/01/13........ A2 A 1,161
1,250 Union City, California,
Community Redevelopment
Agency, Tax Allocation,
(Community
Redevelopment Project)
Series 1993, (AMBAC
Insured),
5.850% 10/01/23........ Aaa AAA 1,277
5,000 University of California,
Hospital Revenue,
(University of
California Medical
Center Project) Series
1996, (AMBAC Insured),
5.750% 07/01/24........ Aaa AAA 5,084
3,000 University of California,
Hospital Revenue,
(University of
California Medical
Center Project) Series
1996, (AMBAC Insured),
6.000% 07/01/26........ Aaa AAA 3,113
3,000 West Covina, California,
Redevelopment Agency,
Community Facilities
District Special Tax,
Refunding, (Fashion
Plaza Project) Series
1996,
6.000% 09/01/17........ NR A 3,204
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 52
NATIONS FUNDS
Nations California Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA -- (CONTINUED)
$1,025 Westwood, California,
Unified School
District, GO, Series
1996,
6.500% 08/01/21........ NR BBB $ 1,055
--------
172,861
--------
PUERTO RICO -- 5.7%
1,500 Puerto Rico Commonwealth
Infrastructure
Financing Authority,
Special Obligation
Bonds, Series 2000A,
5.500% 10/01/32........ Aaa AAA 1,490
4,000 Puerto Rico, Electric
Power Authority, Power
Revenue, Series 2000HH,
(FSA Insured),
5.250% 07/01/29........ Aaa AAA 3,844
5,000 Puerto Rico, Electric
Power Authority,
Revenue,
6.000% 07/01/14........ Baa1 A- 5,216
--------
10,550
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $176,610)........................ 183,411
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $624)
624 Nations Municipal Reserves#........... 624
--------
TOTAL INVESTMENTS
(Cost $177,234*)............. 100.1% 184,035
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (0.1)%
Cash.................................. $ 17
Receivable for investment securities
sold................................ 66
Receivable for Fund shares sold....... 200
Interest receivable................... 2,377
Payable for Fund shares redeemed...... (424)
Investment advisory fee payable....... (44)
Administration fee payable............ (30)
Shareholder servicing and distribution
fees payable........................ (35)
Distributions payable................. (711)
Payable for investment securities
purchased........................... (1,484)
Accrued Trustees'/Directors' fees and
expenses............................ (15)
Accrued expenses and other
liabilities......................... (36)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (119)
--------
NET ASSETS..................... 100.0% $183,916
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 312
Accumulated net realized gain on
investments sold.................... 582
Net unrealized appreciation of
investments......................... 6,801
Paid-in capital....................... 176,221
--------
NET ASSETS............................ $183,916
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($30,090,084 / 4,144,349 shares
outstanding)........................ $7.26
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($148,452,125 / 20,408,076
shares outstanding)................. $7.27
=====
Maximum sales charge.................. 4.75%
Maximum offering price per share...... $7.64
INVESTOR B SHARES:
Net asset value and offering price per
share** ($4,863,012 / 668,445 shares
outstanding)........................ $7.28
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($510,312 / 70,351 shares
outstanding)........................ $7.25
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $6,801 on
investment securities was comprised of gross appreciation of $7,503 and
gross depreciation of $702 for federal income tax purposes. At September 30,
2000, the aggregate cost of securities for federal income tax purposes was
$177,234.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
## Step Bond.
Nations California Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
MBIA 21.80%
AMBAC 13.93%
Nations California Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
Lease Revenue 19.43%
Water Revenue 14.03%
Transportation Revenue 10.54%
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 53
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.9%
FLORIDA -- 95.4%
$2,000 Alachua County, Florida,
Health Facilities
Authority, Revenue,
(Shands Hospital at the
University of Florida
Project) Series 1992,
(MBIA Insured),
6.100% 12/01/05........ Aaa AAA $ 2,060
3,375 Bay County, Florida, PCR
Refunding,
(International Paper
Company Project) Series
1998A,
5.100% 09/01/12........ Baa1 BBB+ 3,238
1,000 Bay Medical Center,
Florida, Hospital
Revenue Refunding, (Bay
Medical Center Project)
Series 1996, (AMBAC
Insured),
5.000% 10/01/05........ Aaa AAA 1,012
2,000 Bay Medical Center,
Florida, Hospital
Revenue Refunding, (Bay
Medical Center Project)
Series 1996, (AMBAC
Insured),
5.450% 10/01/12........ Aaa AAA 2,031
2,000 Boca Raton, Florida,
Water and Sewer Revenue
Refunding, Series 1992,
5.600% 10/01/04........ Aa2 AA- 2,059
1,000 Brevard County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Wuesthoff
Memorial Hospital
Project) Series 1996,
(MBIA Insured),
6.250% 04/01/06........ Aaa AAA 1,069
1,000 Broward County, Florida,
Gas Tax Revenue, Series
1991, Prerefunded
09/01/01 @ 101,
6.400% 09/01/03........ A1 AA- 1,028
3,000 Broward County, Florida,
GO Refunding, Series
1992C,
6.200% 01/01/07........ Aa2 AA 3,114
2,000 Broward County, Florida,
School District, GO
Refunding, Series 1992,
6.000% 02/15/07........ A1 AA- 2,071
2,000 Broward County, Florida,
Solid Waste Systems
Revenue, Series 1993A,
(MBIA Insured),
5.500% 07/01/04........ Aaa AAA 2,063
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,275 Clearwater, Florida,
Water and Sewer
Authority, Revenue
Refunding, Series 1998,
(FGIC Insured),
4.850%(+) 12/01/11..... Aaa AAA $ 1,248
1,000 Clearwater, Florida,
Water and Sewer
Authority, Revenue
Refunding, Series 1998,
(FGIC Insured),
5.080%(+) 12/01/13..... Aaa AAA 480
3,000 Clearwater, Florida,
Water and Sewer
Authority, Revenue,
Series 1993, (AMBAC
Insured),
5.000% 12/01/02........ Aaa AAA 3,034
1,000 Collier County, Florida,
Water and Sewer
District, Revenue,
Series 1992, (FGIC
Insured),
6.375% 07/01/10........ Aaa AAA 1,051
1,000 Dade County, Florida,
Aviation Facility
Revenue Refunding,
Series 1994B, AMT,
(AMBAC Insured),
6.300% 10/01/05........ Aaa AAA 1,072
3,650 Dade County, Florida,
Aviation Revenue,
(Miami International
Airport Project) Series
1997B, AMT, (FSA
Insured),
5.000% 10/01/06........ Aaa AAA 3,678
2,300 Dade County, Florida,
School District, GO
Refunding, Series 1993,
(AMBAC Insured),
5.000% 07/15/01........ Aaa AAA 2,311
2,000 Delray Beach, Florida,
Water and Sewer Revenue
Refunding, Series
1993A, (AMBAC Insured),
5.000% 10/01/02........ Aaa AAA 2,021
1,000 Delray Beach, Florida,
Water and Sewer Revenue
Refunding, Series
1993A, (AMBAC Insured),
5.000% 10/01/03........ Aaa AAA 1,015
1,565 Dunes, Florida, Community
Development District,
Revenue Refunding,
(Intracoastal Waterway
Bridge Project) Series
1993,
5.300% 10/01/03........ NR BBB 1,579
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 54
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,900 Dunes, Florida, Community
Development District,
Revenue Refunding,
(Intracoastal Waterway
Bridge Project) Series
1993,
5.400% 10/01/04........ NR BBB $ 1,926
1,845 Duval County, Florida,
Housing Finance
Authority, Multi-Family
Mortgage Revenue
Refunding, (The Cove
Project) Series 1992,
6.100% 10/01/02........ NR AAA 1,877
2,000 Escambia County, Florida,
Housing Finance
Authority,
Single-Family Mortgage
Revenue, (Multi-County
Program) Series 2000A,
AMT, (MBIA/FHA/VA
Insured),
6.300% 10/01/20........ Aaa NR 2,080
3,600 Escambia County, Florida,
PCR, (Champion
International
Corporation Project)
Series 1996, AMT,
6.400% 09/01/30........ Baa1 NR 3,602
1,700 Escambia County, Florida,
Utilities Authority
Systems Revenue, Series
1996, (FGIC Insured),
5.625% 01/01/21........ Aaa AAA 1,704
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO Refunding,
Series 1993A,
5.000% 06/01/08........ Aa2 AA+ 1,016
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1992C, Prerefunded
06/01/02 @ 101,
6.500% 06/01/11........ Aaa AAA 1,042
4,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1993D,
5.200% 06/01/11........ Aa2 AA+ 4,028
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.000% 06/01/18........ Aa2 AA+ 936
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,500 Florida State, Department
of Transportation, GO,
(Right of Way Bridge
Project) Series 1996,
5.375% 07/01/26........ Aa2 AA+ $ 1,444
3,000 Florida State, Division
of Bond Financing,
Department of General
Services, Revenue,
(Department of Natural
Resources - Preservation
2000 Project) Series
1991A, (AMBAC Insured),
6.250% 07/01/01........ Aaa AAA 3,040
1,000 Florida State, Division
of Bond Financing,
Department of General
Services, Revenue,
(Department of Natural
Resources - Preservation
2000 Project) Series
1992A, (AMBAC Insured),
Prerefunded 07/01/02 @
101,
6.250% 07/01/06........ Aaa AAA 1,039
2,000 Florida, Greater Orlando
Aviation Authority,
Revenue Refunding,
Series 1992B, (FGIC
Insured),
6.200% 10/01/03........ Aaa AAA 2,093
4,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put 12/01/03
@ 100,
7.000% 12/01/24........ NR BBB+ 4,192
1,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (United
Dominion Realty Trust -
Andover Project) Series
1996E, AMT, Mandatory
Put 05/01/08 @ 100,
6.350% 05/01/26........ NR BBB+ 1,025
1,020 Florida, Housing Finance
Agency, Revenue
Refunding, (The
Vineyards Project)
Series 1995H,
5.875% 11/01/05........ NR BBB+ 1,036
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 55
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Florida, Housing Finance
Agency, Revenue
Refunding, (The
Vineyards Project)
Series 1995H,
6.400% 11/01/15........ NR BBB+ $ 1,022
2,240 Florida, Housing Finance
Corporation, Revenue
(Homeowner Mortgage
Project) Series 1998-1,
(MBIA Insured),
4.950% 07/01/11........ Aaa AAA 2,230
3,000 Florida, Orlando and
Orange County
Expressway Authority,
Revenue Refunding,
Senior Lien, Series
1993, (AMBAC Insured),
5.000% 07/01/03........ Aaa AAA 3,041
1,000 Florida, Ports Financing
Commission, Revenue,
(State Transportation
Trust Fund Project)
Series 1996, AMT, (MBIA
Insured),
5.375% 06/01/16........ Aaa AAA 975
1,000 Gainesville, Florida,
Utility Systems
Revenue, Series 1996A,
5.750% 10/01/07........ Aa3 AA 1,062
3,200 Greater Orlando, Aviation
Authority, Revenue
Refunding, Series
1992D, (AMBAC Insured),
5.450% 10/01/01........ Aaa AAA 3,232
2,000 Greater Orlando, Aviation
Authority, Revenue
Refunding, Series
1992D, (AMBAC Insured),
5.600% 10/01/02........ Aaa AAA 2,042
1,375 Hialeah, Florida, Capital
Improvement Revenue,
Series 1993,
5.500% 10/01/18........ Baa1 NR 1,306
3,170 Hillsborough County,
Florida, Aviation
Authority, Revenue
Refunding, (Tampa
International Airport
Project) Series 1997A,
AMT, (AMBAC Insured),
5.750% 10/01/07........ Aaa AAA 3,326
1,000 Hillsborough County,
Florida, Capital
Improvement Revenue
Refunding, (County
Center Project) Series
1996B, (MBIA Insured),
5.000% 07/01/11........ Aaa AAA 997
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,640 Hillsborough County,
Florida,
Environmentally
Sensitive Lands, Series
1992, (AMBAC Insured),
6.250% 07/01/06........ Aaa AAA $ 2,768
3,500 Hillsborough County,
Florida, IDR Refunding,
(Tampa Electric Company
Project) Series 1992,
8.000% 05/01/22........ Aa3 AA 3,750
1,500 Indian River County,
Florida, School
District, GO Refunding,
Series 1993, (FSA
Insured),
5.000% 04/01/03........ Aaa AAA 1,519
1,800 Indian River County,
Florida, School
District, GO Refunding,
Series 1993, (FSA
Insured),
5.000% 04/01/04........ Aaa AAA 1,827
1,750 Indian River County,
Florida, School
District, GO Refunding,
Series 1993, (FSA
Insured),
5.100% 04/01/05........ Aaa AAA 1,787
1,000 Indian River County,
Florida, Water and
Sewer Revenue
Refunding, Series
1993A, (FGIC Insured),
5.200% 09/01/05........ Aaa AAA 1,025
1,000 Jacksonville Beach,
Florida, Utilities
Revenue, Series 1991,
(MBIA Insured),
Prerefunded 10/01/01 @
102,
6.500% 10/01/12........ Aaa AAA 1,040
1,000 Jacksonville, Florida,
Electric Systems
Authority, Revenue,
Series 1993A,
5.200% 10/01/02........ Aa2 AA 1,014
1,000 Jacksonville, Florida,
Excise Tax Revenue
Refunding, Series
1995A, (FGIC Insured),
5.000% 10/01/09........ Aaa AAA 1,014
1,375 Jacksonville, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding, (St.
Lukes Hospital
Association Project)
Series 1991,
6.750% 11/15/02........ NR AA+ 1,432
4,200 Jacksonville, Florida,
Health Facilities
Authority, Hospital
Revenue, Series 1997B,
5.400% 08/15/18........ Aaa NR 4,136
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 56
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,000 Lakeland, Florida,
Electricity and Water
Revenue Refunding,
Series 1992,
5.625% 10/01/04........ A1 AA- $ 2,079
2,025 Marion County, Florida,
Hospital District,
Revenue Refunding,
Series 1999,
5.250% 10/01/11........ A2 NR 1,964
1,500 Miami Beach, Florida, GO
Refunding, Series 1993,
(FGIC Insured),
5.300% 09/01/03........ Aaa AAA 1,534
2,000 Miami, Florida, GO
Refunding, Series 1992,
(FGIC Insured),
5.600% 12/01/03........ Aaa AAA 2,066
3,000 Miami-Dade County,
Florida, Aviation
Revenue, Series 1998C,
AMT, (MBIA Insured),
5.000% 10/01/23........ Aaa AAA 2,680
2,000 Miami-Dade County,
Florida, Aviation
Revenue, Series 1998C,
AMT, (MBIA Insured),
5.000% 10/01/28........ Aaa AAA 1,762
5,365 Miami-Dade County,
Florida, Special
Obligation Revenue
Refunding, Series
1997A, (MBIA Insured),
6.013%(+) 10/01/19..... Aaa AAA 1,741
1,000 Naples, Florida, Water
and Sewer Revenue
Refunding, Series 1992,
(FGIC Insured),
6.400% 09/01/07........ Aaa AAA 1,049
1,000 Nassau County, Florida,
PCR Refunding, (ITT
Rayonier Inc. Project)
Series 1992,
6.250% 06/01/10........ Baa2 BBB- 992
3,000 North Broward, Florida,
Hospital District
Revenue Refunding,
Series 1992, (MBIA
Insured), Prerefunded
01/01/02 @ 102,
6.250% 01/01/06........ Aaa AAA 3,121
1,375 Orange County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Lakeside
Alternatives, Inc.
Project) Series 1995,
6.250% 07/01/05........ NR BBB 1,398
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$4,640 Orange County, Florida,
Health Facilities
Authority, Revenue,
(Orlando Regional
Healthcare Project)
Series 1996A, (MBIA
Insured),
6.250% 10/01/08........ Aaa AAA $ 5,099
1,405 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1993A, (MBIA
Insured),
5.400% 11/01/02........ Aaa AAA 1,431
2,800 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1993B, (MBIA
Insured),
4.400% 10/01/02........ Aaa AAA 2,789
1,445 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 1,584
555 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 610
2,455 Orange County, Florida,
Housing Finance
Authority, Multi-Family
Mortgage Revenue,
Series 1999L, AMT,
5.650% 12/01/17........ A3 NR 2,301
1,720 Orange County, Florida,
Housing Finance
Authority,
Single-Family Mortgage
Revenue, Series 1997A,
AMT, (GNMA/FNMA COLL),
5.900% 09/01/19........ NR AAA 1,740
5,000 Orange County, Florida,
Tourist Development Tax
Revenue Refunding,
Series 1998A, (AMBAC
Insured),
4.750% 10/01/24........ Aaa AAA 4,336
2,000 Orlando and Orange
County, Florida,
Expressway Authority,
Revenue, Junior Lien,
Series 1990, (FGIC
Insured),
6.500% 07/01/10........ Aaa AAA 2,252
1,000 Orlando, Florida, Greater
Orlando Aviation
Authority, Airport
Facilities Revenue
Refunding, Series 1997,
AMT, (FGIC Insured),
5.125% 10/01/12........ Aaa AAA 985
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 57
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$3,000 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1992,
5.600% 10/01/03........ Aa1 AA $ 3,094
2,000 Orlando, Florida,
Utilities Commission,
Water and Electric
Revenue Refunding,
Series 1993B,
5.400% 10/01/08........ Aa2 AA- 2,055
2,000 Palm Beach County,
Florida, GO Refunding,
Series 1998,
5.500% 12/01/11........ Aa1 AA 2,109
1,250 Palm Beach County,
Florida, GO, Series
1991, Prerefunded
10/01/01 @ 102,
6.600% 10/01/11........ NR NR 1,300
1,750 Palm Beach County,
Florida, GO, Series
1994,
6.875% 12/01/03........ Aa1 AA 1,871
1,300 Palm Beach County,
Florida, GO, Series
1994,
7.000% 12/01/04........ Aa1 AA 1,419
1,000 Palm Beach County,
Florida, Health
Facilities Authority,
Hospital Revenue, (Good
Samaritans Health
System Project) Series
1993,
6.100% 10/01/05........ Aaa NR 1,059
4,400 Palm Beach County,
Florida, Housing
Finance Authority,
Single-Family Mortgage
Revenue Refunding,
Series 1999A, AMT,
(GNMA/FNMA COLL),
4.850% 04/01/32........ Aaa NR 4,315
2,000 Palm Beach County,
Florida, School
District, GO Refunding,
Series 1992, (AMBAC
Insured),
6.000% 08/01/06........ Aaa AAA 2,066
2,000 Palm Beach County,
Florida, Stadium
Facilities Revenue,
Series 1996, (MBIA
Insured),
5.250% 12/01/16........ Aaa AAA 1,953
1,250 Pembroke Pines, Florida,
Consolidated Utilities
Systems Revenue, Series
1992, (FGIC Insured),
6.250% 09/01/07........ Aaa AAA 1,340
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,400 Pinellas County, Florida,
Health Facilities
Authority, Hospital
Revenue, (Morton Plant
Hospital Association
Project) Series 1993,
(MBIA Insured),
4.900% 11/15/02........ Aaa AAA $ 1,409
1,000 Pinellas County, Florida,
PCR Refunding, (Anclote
and Barton Power
Plants - Florida Power
Corporation Project)
Series 1991,
7.200% 12/01/14........ A1 A+ 1,036
2,500 Pinellas County, Florida,
Resource Recovery
Revenue Refunding,
Series 1990A, (MBIA
Insured),
6.800% 10/01/02........ Aaa AAA 2,554
1,690 Reedy Creek, Florida,
Improvement District,
Revenue, Unrefunded
Balance, Series 1991A,
6.400% 06/01/07........ A1 A+ 1,725
10 Reedy Creek, Florida,
Improvement District,
Series 1991A,
Prerefunded 06/01/01 @
101,
6.400% 06/01/07........ A1 A+ 10
1,200 Sarasota County, Florida,
GO Refunding, Series
1992, (FGIC Insured),
6.100% 10/01/02........ Aaa AAA 1,237
1,650 Sarasota County, Florida,
Public Hospital Board,
Revenue Refunding,
(Sarasota Memorial
Hospital Project)
Series 1997B, (MBIA
Insured),
5.000% 10/01/07........ Aaa NR 1,666
1,750 Sarasota County, Florida,
Public Hospital Board,
Revenue Refunding,
(Sarasota Memorial
Hospital Project)
Series 1998B, (MBIA
Insured),
5.250% 07/01/11........ Aaa AAA 1,776
1,000 Sarasota, Florida, Water
and Sewer Utility
Revenue Refunding,
Series 1992, (FGIC
Insured),
6.000% 10/01/02........ Aaa AAA 1,029
2,100 Seminole County, Florida,
School District, GO
Refunding, Series 1992,
(MBIA Insured),
5.900% 08/01/02........ Aaa AAA 2,153
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 58
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$2,000 St. Lucie County,
Florida, School
District, GO Refunding,
Series 1992, (AMBAC
Insured),
6.000% 07/01/03........ Aaa AAA $ 2,076
1,000 St. Lucie County,
Florida, School
District, GO, Series
1997, (FGIC Insured),
5.875% 02/01/07........ Aaa AAA 1,064
1,000 Tallahassee, Florida,
Health Facilities
Revenue Refunding,
(Tallahassee Memorial
Medical Center Project)
Series 1992B, (MBIA
Insured),
5.750% 12/01/04........ Aaa AAA 1,040
1,000 Tallahassee, Florida,
Health Facilities
Revenue Refunding,
(Tallahassee Memorial
Regional Medical Center
Project) Series 1992A,
(MBIA Insured),
5.750% 12/01/04........ Aaa AAA 1,040
1,000 Tampa, Florida, Capital
Improvement Authority,
Hospital Revenue, (H.
Lee Moffitt Project)
Series 1999A,
4.875% 07/01/13........ A3 A 907
2,000 Tampa, Florida, Health
Systems Revenue,
(Catholic Health
Project) Series
1998A-1, (MBIA
Insured),
4.875% 11/15/15........ Aaa AAA 1,821
3,170 Tampa, Florida, Sports
Authority, Local
Optional Sales Tax
Revenue, (Stadium
Project) Series 1997,
(MBIA Insured),
6.000% 01/01/07........ Aaa AAA 3,391
3,000 Tampa, Florida, Tax
Allocation, (Cigarette-
H. Lee Moffitt Cancer
Project) Series 1999,
(AMBAC Insured),
5.000% 03/01/07........ Aaa AAA 3,051
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$1,000 Tampa, Florida, Water and
Sewer Revenue, Series
1993A, (FGIC Insured),
5.000% 10/01/02........ Aaa AAA $ 1,011
1,025 Venice, Florida, Health
Facilities Revenue,
(Venice Hospital Inc.
Project) Series 1994,
5.300% 12/01/02........ Aaa NR 1,041
--------
206,990
--------
ILLINOIS -- 0.5%
1,620 Champaign County,
Illinois, Community
Unit School District
No. 116 Urbana, GO,
Series 1999C, (FGIC
Insured),
5.250%(+) 01/01/10..... Aaa AAA 1,007
--------
TEXAS -- 2.0%
2,000 Dallas-Fort Worth, Texas,
International Airport
Facilities Improvement,
Corporate Revenue
Refunding, (American
Airlines Project)
Series 2000C, AMT,
6.150% 05/01/29........ Baa1 BBB- 2,007
4,000 Texas State, Turnpike
Authority, Dallas North
Tollway Revenue,
(President George Bush
Turnpike Project)
Series 1996, (AMBAC
Insured),
5.360%(+) 01/01/11..... Aaa AAA 2,344
--------
4,351
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $209,313)........ 212,348
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 59
NATIONS FUNDS
Nations Florida Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.7%
(Cost $1,597)
1,597 Nations Municipal Reserves#........... $ 1,597
--------
TOTAL INVESTMENTS
(Cost $210,910*)............. 98.6% 213,945
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 1.4%
Cash.................................. $ 1
Receivable for Fund shares sold....... 43
Interest receivable................... 4,116
Payable for Fund shares redeemed...... (7)
Investment advisory fee payable....... (36)
Administration fee payable............ (36)
Shareholder servicing and distribution
fees payable........................ (5)
Distributions payable................. (861)
Payable for investment securities
purchased........................... (43)
Accrued Trustees'/Directors' fees and
expenses............................ (24)
Accrued expenses and other
liabilities......................... (54)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... 3,094
--------
NET ASSETS..................... 100.0% $217,039
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 14
Accumulated net realized loss on
investments sold.................... (1,252)
Net unrealized appreciation of
investments......................... 3,035
Paid-in capital....................... 215,242
--------
NET ASSETS............................ $217,039
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($204,455,410 / 19,647,958 shares
outstanding)........................ $10.41
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($8,326,351 / 800,842
shares outstanding)................. $10.40
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.75
INVESTOR B SHARES
Net asset value and offering price per
share** ($4,137,638 / 397,592 shares
outstanding)........................ $10.41
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($119,840 / 11,496 shares
outstanding)........................ $10.42
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $3,035 on
investment securities was comprised of gross appreciation of $4,693 and
gross depreciation of $1,658 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $210,910.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
Nations Florida Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
MBIA 23.06%
AMBAC 20.67%
FGIC 10.68%
Nations Florida Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 17.68%
Transportation Revenue 14.49%
Hospital Revenue 12.00%
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 60
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.2%
FLORIDA -- 87.6%
$ 870 Alachua County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Santa Fe
Healthcare Facilities,
Inc. Project) Series
1993,
6.000% 11/15/09........ Baa1 AAA $ 909
1,000 Alachua County, Florida,
Health Facilities
Authority, Revenue,
(Shands Teaching
Hospital/Clinic
Project) Series 1996A,
(MBIA Insured),
5.000% 12/01/04........ Aaa AAA 1,012
1,000 Bay County, Florida, PCR
Refunding,
(International Paper
Company Project) Series
1998A,
5.100% 09/01/12........ Baa1 BBB+ 959
2,550 Brevard County, Florida,
Health Facilities
Authority, Revenue,
(Holmes Regional
Medical Center, Inc.
Project) Series 1996,
(MBIA Insured),
5.625% 10/01/14........ Aaa AAA 2,585
1,000 Canaveral, Florida, Port
Authority, Port
Improvement Revenue
Refunding, Series
1996B, (FGIC Insured),
5.700% 06/01/13........ Aaa AAA 1,030
2,250 Charlotte County,
Florida, Utility
Revenue Refunding,
Series 1996A, (FGIC
Insured),
5.625% 10/01/16........ Aaa AAA 2,285
5,175 Collier County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Moorings,
Inc. Project) Series
1994,
7.000% 12/01/19........ NR A- 5,338
2,500 Dade County, Florida,
Aviation Revenue,
Series 1996A, AMT,
(MBIA Insured),
5.750% 10/01/12........ Aaa AAA 2,579
1,000 Dade County, Florida,
School District, GO,
Series 1994A, (MBIA
Insured),
6.125% 06/01/14........ Aaa AAA 1,069
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 2,000 Escambia County, Florida,
Housing Finance
Authority,
Single-Family Mortgage
Revenue, (Multi-County
Program) Series 2000A,
AMT, (MBIA/FHA/VA
Insured),
6.300% 10/01/20........ Aaa NR $ 2,080
1,000 Escambia County, Florida,
PCR, (Champion
International
Corporation Project)
Series 1994, AMT,
6.900% 08/01/22........ Baa1 BBB+ 1,033
1,000 Escambia County, Florida,
PCR, (Champion
International
Corporation Project)
Series 1996, AMT,
6.400% 09/01/30........ Baa1 NR 1,001
3,000 Florida State, Board of
Education, Capital
Outlay GO, Series
1997A,
5.000% 01/01/17........ Aa2 AA+ 2,837
1,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO Refunding,
Series 1993A,
5.000% 06/01/08........ Aa2 AA+ 1,016
2,500 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.250% 06/01/16........ Aa2 AA+ 2,453
2,000 Florida State, Board of
Education, Public
Education Capital
Outlay GO, Series
1996A,
5.000% 06/01/18........ Aa2 AA+ 1,873
1,000 Florida State, Department
of Transportation, GO,
(Right of Way Bridge
Project) Series 1996,
5.375% 07/01/26........ Aa2 AA+ 963
1,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (Altamonte
Project) Series 1994C,
Mandatory Put 12/01/03
@ 100, 7.000%
12/01/24............... NR BBB+ 1,048
2,985 Florida, Housing Finance
Agency, Revenue,
(Homeowner Mortgage
Project) Series 1997-2,
AMT, (MBIA Insured),
5.750% 07/01/14........ Aaa AAA 3,032
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 61
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 1,630 Florida, Housing Finance
Corporation, Revenue
(Homeowner Mortgage
Project) Series 1998-1,
(MBIA Insured),
4.950% 01/01/11........ Aaa AAA $ 1,623
3,000 Gainesville, Florida,
Utility Systems
Revenue, Series 1992B,
6.500% 10/01/11........ Aa3 AA 3,399
1,000 Hillsborough County,
Florida, IDR Refunding,
(Tampa Electric Company
Project) Series 1992,
8.000% 05/01/22........ Aa3 AA 1,071
1,000 Hillsborough County,
Florida, Utilities
Revenue Refunding,
Series 1993, (MBIA
Insured),
5.500% 08/01/12........ Aaa AAA 1,012
5,000 Jacksonville, Florida,
Sales Tax Revenue,
(River City Renaissance
Project) Series 1995,
(FGIC Insured),
5.650% 10/01/14........ Aaa AAA 5,105
5,000 Jacksonville, Florida,
Sales Tax Revenue,
(River City Renaissance
Project) Series 1995,
(FGIC Insured),
5.375% 10/01/18........ Aaa AAA 4,885
2,430 Leon County, Florida,
Capital Improvement
Revenue, Series 1997,
(AMBAC Insured),
5.250% 10/01/17........ Aaa AAA 2,348
2,300 Martin County, Florida,
Industrial Development
Authority, Revenue,
(Indiantown
Cogeneration Project)
Series 1995B, AMT,
8.050% 12/15/25........ Baa3 BBB- 2,344
2,620 Miami Beach, Florida,
Water and Sewer
Revenue, Series 1995,
(FSA Insured),
5.375% 09/01/15........ Aaa AAA 2,619
3,500 Miami-Dade County,
Florida, Aviation
Revenue, Series 1998C,
AMT, (MBIA Insured),
5.250% 10/01/15........ Aaa AAA 3,391
2,000 North Broward, Florida,
Hospital District,
Revenue Refunding,
Series 1997, (MBIA
Insured),
5.250% 01/15/17........ Aaa AAA 1,922
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 5,000 Okaloosa County, Florida,
Gas Distribution
Revenue Refunding,
Series 1994, (MBIA
Insured), Prerefunded
10/01/04 @ 102,
6.875% 10/01/19........ Aaa AAA $ 5,505
935 Orange County, Florida,
Health Facilities
Authority, Revenue,
(Orlando Regional
Healthcare Project),
Series 1993B, (MBIA
Insured),
5.000% 10/01/10........ Aaa AAA 934
3,260 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 3,573
1,260 Orange County, Florida,
Health Facilities
Authority, Revenue,
Series 1996A, (MBIA
Insured),
6.250% 10/01/16........ Aaa AAA 1,385
3,000 Orange County, Florida,
Tourist Development Tax
Revenue Refunding,
Series 1998A, (AMBAC
Insured),
4.750% 10/01/24........ Aaa AAA 2,602
1,000 Orange County, Florida,
Tourist Development Tax
Revenue, Series 1994B,
(MBIA Insured),
Prerefunded 10/01/04 @
102,
6.000% 10/01/14........ Aaa AAA 1,070
2,950 Orlando, Florida, Greater
Orlando Aviation
Authority, Airport
Facilities Revenue,
Series 1999A, AMT,
(FGIC Insured),
5.250% 10/01/10........ Aaa AAA 2,971
1,500 Orlando, Florida,
Utilities Commission,
Water and Electric
Utilities Revenue
Refunding, Series
1994A,
5.000% 10/01/20........ Aa2 AA- 1,377
3,000 Orlando, Florida,
Utilities Commission,
Water and Electricity
Revenue Refunding,
Series 1989D,
6.750% 10/01/17........ Aa2 AA- 3,425
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 62
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 1,000 Osceola County, Florida,
Health Facilities
Authority, Revenue
Refunding, (Evangelical
Lutheran Good Samaritan
Society Project) Series
1994, (AMBAC Insured),
6.000% 05/01/10........ Aaa AAA $ 1,048
1,500 Palm Beach County,
Florida, Health
Facilities Authority,
Hospital Revenue, (Good
Samaritans Health
System Project) Series
1993, Prerefunded
10/01/05 @ 100,
6.200% 10/01/11........ Aaa NR 1,592
1,000 Palm Beach County,
Florida, Housing
Finance Authority,
Single-Family Mortgage
Revenue Refunding,
Series 1999A, AMT,
(GNMA/FNMA COLL),
4.850% 04/01/32........ Aaa NR 981
5,065 Palm Beach County,
Florida, Solid Waste
Authority, Revenue,
Unrefunded Balance,
Series 1997A, (AMBAC
Insured),
6.000% 10/01/10........ Aaa AAA 5,485
2,000 Pensacola, Florida,
Airport Revenue, Series
1997B, AMT, (MBIA
Insured),
5.625% 10/01/14........ Aaa AAA 2,023
4,000 Pinellas County, Florida,
Capital Improvement
Revenue, Series 2000,
4.500% 01/01/06........ Aa3 NR 3,979
1,000 Polk County, Florida,
Industrial Development
Authority, Solid Waste
Disposal Facilities
Revenue, (Tampa
Electric Company
Project) Series 1996,
AMT,
5.850% 12/01/30........ Aa2 A1+ 1,006
4,000 South Miami, Florida,
Health Facilities
Authority, Hospital
Revenue Refunding,
(Baptist Health Systems
Obligation Group
Project) Series 1995,
(MBIA Insured),
5.375% 10/01/16........ Aaa AAA 3,927
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
FLORIDA -- (CONTINUED)
$ 2,500 Sunrise Lakes, Florida,
Phase 4 Recreational
District, GO, Series
1995A, Prerefunded
08/01/05 @ 102,
6.750% 08/01/24........ NR BBB- $ 2,755
1,000 Tampa, Florida, Sports
Authority, Local
Optional Sales Tax
Revenue, (Stadium
Project) Series 1997,
(MBIA Insured),
5.125% 01/01/12........ Aaa AAA 1,004
2,000 Tampa, Florida, Sports
Authority, Local
Optional Sales Tax
Revenue, (Stadium
Project) Series 1997,
(MBIA Insured),
5.250% 01/01/17........ Aaa AAA 1,953
2,500 Tampa, Florida, Sports
Authority, Sales Tax
Revenue, (Tampa Bay
Arena Project) Series
1995, (MBIA Insured),
5.750% 10/01/15........ Aaa AAA 2,639
1,000 Tampa, Florida, Tax
Allocation, (H-Lee
Moffitt Cancer Project)
Series 1999, (AMBAC
Insured),
4.875% 03/01/06........ Aaa AAA 1,012
1,000 Volusia County, Florida,
Educational Facilities
Authority, Educational
Facilities Revenue,
(Embry-Riddle
Aeronautical University
Project) Series 1996A,
6.125% 10/15/26........ Baa2 NR 1,009
2,380 Volusia County, Florida,
Educational Facilities
Authority, Educational
Facilities Revenue,
(Embry-Riddle
Aeronautical University
Project) Series 1999A,
5.750% 10/15/29........ Baa2 NR 2,264
--------
120,340
--------
GUAM -- 5.3%
3,820 Guam, Airport Authority,
Revenue, Series 1993A,
6.375% 10/01/10........ NR BBB 4,025
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 63
NATIONS FUNDS
Nations Florida Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GUAM -- (CONTINUED)
$ 3,000 Guam, Power Authority,
Revenue, Series 1994A,
Prerefunded 10/01/04 @
102,
6.750% 10/01/24........ NR AAA $ 3,308
--------
7,333
--------
PUERTO RICO -- 4.3%
4,190 Puerto Rico Commonwealth,
GO, Series 1997, (MBIA
Insured),
6.500% 07/01/15........ Aaa AAA 4,806
1,000 Puerto Rico, Industrial
Tourist Educational
Medical and
Environmental
Authority, Control
Facilities Hospital
Revenue, (Hospital
Auxilio Mutuo
Obligation Group
Project) Series 1995A,
(MBIA Insured),
6.250% 07/01/16........ Aaa AAA 1,049
--------
5,855
--------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $128,519)........................ 133,528
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 1.2%
(Cost $1,710)
1,710 Nations Municipal Reserves#........... 1,710
--------
TOTAL INVESTMENTS
(Cost $130,229*)............. 98.4% 135,238
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 1.6%
Cash.................................. $ 6
Receivable for investment securities
sold................................ 3,930
Receivable for Fund shares sold....... 30
Interest receivable................... 3,134
Payable for Fund shares redeemed...... (183)
Investment advisory fee payable....... (31)
Administration fee payable............ (23)
Shareholder servicing and distribution
fees payable........................ (19)
Distributions payable................. (551)
Payable for investment securities
purchased........................... (3,971)
Accrued Trustees'/Directors' fees and
expenses............................ (23)
Accrued expenses and other
liabilities......................... (60)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... 2,239
--------
NET ASSETS..................... 100.0% $137,477
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 139
Accumulated net realized gain on
investments sold.................... 154
Net unrealized appreciation of
investments......................... 5,009
Paid-in capital....................... 132,175
--------
NET ASSETS............................ $137,477
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($80,895,710 / 8,423,752 shares
outstanding)........................ $9.60
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($45,605,066 / 4,748,841
shares outstanding)................. $9.60
=====
Maximum sales charge.................. 4.75%
Maximum offering price per share...... $10.08
======
INVESTOR B SHARES:
Net asset value and offering price per
share** ($10,953,066 / 1,140,518
shares outstanding)................. $9.60
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($23,253 / 2,422 shares
outstanding)........................ $9.60
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $5,009 on
investment securities was comprised of gross appreciation of $5,312 and
gross depreciation of $303 for federal income tax purposes. At September 30,
2000, the aggregate cost of securities for federal income tax purposes was
$130,229.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
Nations Florida Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
<TABLE>
<S> <C>
MBIA 36.41%
AMBAC 16.87%
FGIC 11.84%
</TABLE>
Nations Florida Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
<TABLE>
<S> <C>
Hospital Revenue 15.46%
Special Tax Revenue 14.22%
Transportation Revenue 12.61%
Electric Revenue 10.27%
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 64
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.1%
GEORGIA -- 98.1%
$1,000 Alpharetta, Georgia, GO,
Series 1992,
6.000% 05/01/03........ Aa2 AA $ 1,036
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 1996,
(AMBAC Insured),
5.000% 01/01/03........ Aaa AAA 1,009
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series 1996,
(AMBAC Insured),
6.000% 01/01/03........ Aaa AAA 1,030
4,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series
2000A, (FGIC Insured),
5.600% 01/01/30(a)..... Aaa AAA 3,943
2,000 Atlanta, Georgia, Urban
Residential Financial
Authority, Multi-Family
Revenue Refunding,
(Housing City Plaza
Project) Series 1998,
AMT, (FNMA COLL),
Mandatory Put 12/01/08
@ 100,
4.550% 12/01/28........ NR AAA 1,895
2,750 Bibb County, Georgia, GO,
Series 1993,
5.500% 01/01/08........ A1 AA 2,820
1,000 Brunswick and Glynn
County, Georgia,
Development Authority,
Revenue Refunding,
(Georgia-Pacific
Corporation Project)
Series 1998, AMT,
5.550% 03/01/26........ Baa2 NR 896
1,500 Burke County, Georgia,
Development Authority,
PCR, (Oglethorpe Power
Corporation Project)
Series 1994B,
4.700% 01/01/04........ A3 A 1,488
2,500 Cartersville, Georgia,
Development Authority,
Sewer Facilities
Revenue Refunding,
(Anheuser-Busch
Companies, Inc.
Project) Series 1997,
AMT,
5.625% 05/01/09........ A1 A+ 2,581
1,000 Cherokee County, Georgia,
School System GO
Refunding, Series 1992,
5.900% 06/01/02........ A2 NR 1,023
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Cherokee County, Georgia,
School System GO,
Series 1993, (AMBAC
Insured),
5.875% 02/01/09........ Aaa AAA $ 1,062
705 Cherokee County, Georgia,
Water and Sewer
Authority, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.300% 08/01/09........ Aaa AAA 721
1,000 Clarke County, Georgia,
Hospital Authority,
Revenue, (Athens
Regional Medical Center
Project) Series 1993,
(MBIA Insured),
Prerefunded 01/01/03 @
102,
5.750% 01/01/08........ Aaa AAA 1,044
1,000 Clarke County, Georgia,
School District, GO
Refunding, Series 1993,
(FGIC Insured),
5.100% 07/01/04........ Aaa AAA 1,018
3,190 Clayton County, Georgia,
Hospital Authority,
Revenue Anticipation
Certificates, (Southern
Regional Medical Center
Project) Series 1998A,
(MBIA Insured),
5.250% 08/01/09........ Aaa AAA 3,274
1,000 Clayton County, Georgia,
Water and Sewer
Authority, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.400% 05/01/07........ Aaa AAA 1,029
2,000 Clayton County, Georgia,
Water and Sewer
Authority, Revenue,
Series 2000,
6.250% 05/01/17........ Aa3 AA 2,149
2,000 Cobb County and Marietta,
Georgia, Water
Authority, Revenue
Refunding, Series 1993,
5.000% 11/01/03........ Aa1 AA 2,028
1,000 Cobb County, Georgia,
Detention Buildings and
Facilities GO, Series
1993,
5.300% 01/01/08........ Aaa AAA 1,021
1,200 Cobb County, Georgia,
Kennestone Hospital
Authority, Revenue,
Series 1992A,
5.600% 04/01/05........ Aa2 AA 1,231
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 65
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Cobb County, Georgia,
Kennestone Hospital
Authority, Revenue,
Series 1992A,
5.700% 04/01/06........ Aa2 AA $ 1,027
2,000 Cobb County, Georgia,
School District, GO,
Series 1991B,
6.150% 02/01/03........ Aa1 AA 2,072
2,000 Cobb County, Georgia,
School District, GO,
Series 1995,
4.800% 02/01/04........ Aa1 AA 2,017
1,000 Cobb County, Georgia,
Water and Sewer
Authority, Revenue
Refunding, Series
1993A,
5.400% 07/01/08........ Aaa AA 1,024
2,250 Columbus, Georgia, Water
and Sewer Authority,
Revenue Refunding,
Series 1992, (FGIC
Insured),
6.000% 05/01/03........ Aaa AAA 2,330
1,000 Columbus, Georgia, Water
and Sewer Authority,
Revenue Refunding,
Series 1993,
5.100% 05/01/03........ A1 A+ 1,013
1,000 Dalton, Georgia, Building
Authority Revenue,
Series 1993,
5.000% 07/01/02........ A1 NR 1,009
1,500 Dalton, Georgia, Multiple
Utilities Revenue
Refunding, Series 1997,
(MBIA Insured),
4.450% 01/01/03........ Aaa AAA 1,498
4,000 DeKalb County, Georgia,
Development Authority,
Revenue, (Emory
University Project)
Series 1994A,
6.000% 10/01/14........ Aa1 AA 4,162
1,000 DeKalb County, Georgia,
School District, GO
Refunding, Series 1993,
5.000% 07/01/03........ Aa2 AA 1,014
1,000 Downtown Savannah
Authority, Georgia,
Revenue Refunding,
(Chatham County
Project) Series 1993A,
5.000% 01/01/11........ Aa3 AA 995
3,490 East Point, Georgia,
Building Authority,
Revenue, Series 2000,
(FSA Insured),
5.970%(+) 02/01/18..... Aaa AAA 1,269
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$6,440 Effingham County,
Georgia, Development
Authority, Solid Waste
Disposal Revenue, (Fort
James Corporation
Project) Series 1998,
AMT,
5.625% 07/01/18........ Baa2 BBB- $ 5,960
1,000 Fayette County, Georgia,
School District, GO
Refunding, Series 1992,
(FGIC Insured),
6.100% 03/01/03........ Aaa AAA 1,036
1,000 Forsyth County, Georgia,
School District, GO,
Series 1999,
6.000% 02/01/15........ Aa2 AA- 1,063
1,500 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (Georgia
Baptist Health Care
Project) Series 1992A,
5.800% 09/01/01........ Baa1 NR 1,517
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (Georgia
Baptist Health Care
Project) Series 1992A,
Prerefunded 09/01/02 @
102,
6.000% 09/01/03........ Baa1 NR 1,043
2,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Joseph Hospital
Project) Series 1994,
4.900% 10/01/03........ Aaa NR 2,020
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Joseph Hospital
Project) Series 1994,
5.500% 10/01/14........ Aaa NR 1,023
2,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, Health
Systems Revenue,
(Catholic Health East
Project) Series 1998A,
(MBIA Insured),
4.600% 11/15/09........ Aaa AAA 1,921
1,000 Fulton and DeKalb
Counties, Georgia,
Hospital Authority, GO
Refunding Certificates,
(Grady Memorial
Hospital Project)
Series 1993, (MBIA
Insured),
5.250% 01/01/04........ Aaa AAA 1,020
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 66
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,025 Fulton County, Georgia,
Building Authority,
Revenue, (County
Government and Health
Facilities Project)
Series 1992A,
5.700% 01/01/04........ Aa3 AA $ 1,059
1,735 Fulton County, Georgia,
Development Authority,
Revenue, (Georgia Tech
Foundation Facilities
Project) Series 1997A,
5.000% 09/01/17........ Aa1 AA+ 1,625
1,000 Fulton County, Georgia,
Hospital Authority,
Revenue Refunding
Anticipation
Certificates,
(Northside Project)
Series 1992A, (MBIA
Insured),
6.000% 10/01/01........ Aaa AAA 1,015
2,900 Fulton County, Georgia,
Housing Authority,
Multi-Family Housing
Revenue, (Concorde
Place Apartments
Project) Series 1996A,
AMT, Prerefunded
07/01/08 @ 100,
6.375% 01/01/27........ NR AAA 3,156
1,500 Fulton County, Georgia,
School District, GO
Refunding, Series 1991,
6.250% 05/01/04........ Aa2 AA 1,583
1,500 Georgia State, GO
Refunding, Series
1992A,
6.250% 03/01/06........ Aaa AAA 1,616
1,200 Georgia State, GO, Series
1992B,
6.000% 03/01/04........ Aaa AAA 1,256
2,750 Georgia State, GO, Series
1993C,
6.500% 07/01/05........ Aaa AAA 2,973
2,000 Georgia State, GO, Series
1999D,
5.800% 11/01/13........ Aaa AAA 2,132
885 Georgia State, Housing
and Finance Authority,
Revenue, (Home
Ownership Program)
Series 1992B, AMT,
6.600% 06/01/25........ NR AA+ 904
1,000 Georgia State, Tollway
Authority, Revenue
Refunding, (Georgia 400
Project) Series 1998,
5.000% 07/01/07........ Aaa AAA 1,020
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$3,880 Georgia, George L. Smith
II World Congress
Center Authority,
Revenue Refunding,
(Domed Stadium Project)
Series 2000, AMT, (MBIA
Insured),
6.000% 07/01/05(a)..... Aaa AAA $ 4,092
1,500 Georgia, Municipal Gas
Authority, Gas Tax
Revenue, (Southern
Storage Gas Project)
Series 1994,
6.000% 07/01/04........ NR A- 1,566
1,000 Griffin-Spalding County,
Georgia, School System,
GO, Series 1996, (State
Aid Withholding, FSA
Insured),
5.250% 02/01/10........ Aaa AAA 1,008
1,000 Hall County, Georgia,
School District, GO
Refunding, Series
1992B,
6.300% 12/01/05........ A1 NR 1,075
2,000 Hall County, Georgia,
School District, GO,
Series 1994, (AMBAC
Insured), Prerefunded
12/01/04 @ 102,
6.700% 12/01/14........ Aaa AAA 2,194
1,000 Henry City and County,
Georgia, Water and
Sewer Authority,
Improvement Revenue
Refunding, Series
1993A,
5.000% 02/01/07........ A2 NR 1,008
450 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, (AMBAC Insured),
5.250% 07/01/09........ Aaa AAA 461
1,550 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, Prerefunded
07/01/07 @ 102, (AMBAC
Insured),
5.250% 07/01/09........ Aaa AAA 1,613
2,000 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, Prerefunded
07/01/07 @ 102, (AMBAC
Insured),
6.000% 07/01/29........ Aaa AAA 2,072
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 67
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Henry County, Georgia,
School District, GO,
Series 1992A,
5.700% 08/01/02........ Aa3 A+ $ 1,021
2,000 Houston County, Georgia,
School District, GO,
Series 1996, (State Aid
Withholding, MBIA
Insured),
5.500% 03/01/16........ Aaa AAA 2,004
1,000 Macon, Georgia, Water
Authority, Water and
Sewer Revenue
Refunding, Series
1994A,
4.700% 10/01/04........ A1 AA- 1,004
1,000 Macon-Bibb County,
Georgia, Industrial
Authority, Industrial
Revenue, (Weyerhaeuser
Company Project) Series
1982,
9.000% 10/01/07........ A3 A 1,247
1,000 Meriwether County,
Georgia, School
District, GO, Series
1996, (State Aid
Withholding, FSA
Insured),
5.500% 02/01/16........ Aaa AAA 1,004
3,000 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue Refunding,
Series 1992P, (AMBAC
Insured),
5.900% 07/01/03........ Aaa AAA 3,107
540 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1983D,
7.000% 07/01/11........ Aaa AAA 632
2,500 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1998B,
(MBIA Insured),
5.100% 07/01/13........ Aaa AAA 2,469
2,000 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1998B,
(MBIA Insured),
5.100% 07/01/15........ Aaa AAA 1,938
1,000 Monroe County, Georgia
Development Authority,
PCR, (Oglethorpe Power
Corporation Project)
Series 1992A,
6.800% 01/01/12........ A3 A 1,110
1,100 Paulding County, Georgia,
School District, GO,
Series 1992A,
6.400% 02/01/04........ A2 A 1,160
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue, (Agnes Scott
College Project) Series
1999, (MBIA Insured),
4.750% 06/01/15........ Aaa AAA $ 918
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue, (Agnes Scott
College Project) Series
1999, (MBIA Insured),
4.800% 06/01/16........ Aaa AAA 916
1,400 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue, (Emory
University Project)
Series 1992C,
5.750% 10/01/02........ Aa1 AA 1,435
1,000 Richmond County, Georgia,
Board of Education, GO
Refunding, Series 1993,
(FGIC Insured),
4.700% 11/01/06........ Aaa AAA 1,002
2,000 Roswell, Georgia, GO,
Series 1995,
5.600% 02/01/10........ Aaa AAA 2,080
2,000 Roswell, Georgia, GO,
Series 2000,
5.500% 02/01/12........ Aaa AAA 2,073
1,000 Savannah, Georgia,
Economic Development
Authority, Revenue
Refunding, (Union Camp
Corporation Project)
Series 1993,
5.150% 05/01/02........ Baa1 NR 1,004
1,250 Savannah, Georgia,
Hospital Authority,
Revenue Refunding,
(Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @
102,
7.000% 01/01/11........ Ba1 BB 1,336
1,225 Savannah, Georgia,
Hospital Authority,
Revenue, (St.
Josephs-Candler Health
Systems Project) Series
1998A, (FSA Insured),
5.250% 07/01/11........ Aaa NR 1,239
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 68
NATIONS FUNDS
Nations Georgia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,310 Savannah, Georgia,
Hospital Authority,
Revenue, (St.
Josephs-Candler Health
Systems Project) Series
1998A, (FSA Insured),
5.250% 07/01/12........ Aaa NR $ 1,314
1,500 Savannah, Georgia,
Resource Recovery
Development Authority,
Revenue Refunding,
(Savannah Energy
Systems Company
Project) Series 1992,
5.850% 12/01/01........ A1 A+ 1,523
1,000 Savannah, Georgia, Water
and Sewer Improvement
Revenue Refunding,
Series 1993,
5.100% 12/01/09........ Aa3 AA- 1,009
2,570 White County, Georgia,
Industrial Development
Authority, Revenue
Refunding, (Springs
Industries, Inc.
Project) Series 1992,
6.850% 06/01/10........ NR BBB+ 2,604
--------
136,908
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $134,592)........................ 136,908
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.9%
(Cost $1,275)
1,275 Nations Municipal Reserves#........... 1,275
--------
TOTAL INVESTMENTS
(Cost $135,867*)............. 99.0% 138,183
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 1.0%
Receivable for investment securities
sold................................ $ 26
Interest receivable................... 2,127
Payable for Fund shares redeemed...... (26)
Investment advisory fee payable....... (20)
Administration fee payable............ (23)
Shareholder servicing and distribution
fees payable........................ (8)
Distributions payable................. (544)
Accrued Trustees'/Directors' fees and
expenses............................ (24)
Accrued expenses and other
liabilities......................... (43)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... 1,465
--------
NET ASSETS..................... 100.0% $139,648
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
---------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 96
Accumulated net realized loss on
investments sold.................... (1,057)
Net unrealized appreciation of
investments......................... 2,316
Paid-in capital....................... 138,293
--------
NET ASSETS............................ $139,648
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($120,635,316 / 11,466,838 shares
outstanding)........................ $10.52
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($11,683,255 / 1,110,523
shares outstanding)................. $10.52
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.87
INVESTOR B SHARES:
Net asset value and offering price per
share** ($6,591,598 / 626,541 shares
outstanding)........................ $10.52
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($738,316 / 70,180 shares
outstanding)........................ $10.52
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $2,316 on
investment securities was comprised of gross appreciation of $3,240 and
gross depreciation of $924 for federal income tax purposes. At September 30,
2000, the aggregate cost of securities for federal income tax purposes was
$135,867.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Georgia Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
MBIA 17.08%
Nations Georgia Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 29.83%
Industrial Development Revenue/
Pollution Control Revenue 12.47%
Pre-Refunded 11.81%
Hospital Revenue 10.98%
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 69
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 100.4%
GEORGIA -- 100.4%
$ 500 Atlanta and Fulton
County, Georgia,
Recreation Authority,
Public Improvement
Revenue, (Downtown Area
Project) Series 1996A,
(MBIA Insured),
5.375% 12/01/26........ Aaa AAA $ 481
1,000 Atlanta, Georgia, Airport
Facilities Revenue
Refunding, Series
2000A, (FGIC Insured),
5.600% 01/01/30(a)..... Aaa AAA 986
500 Bartow County, Georgia,
School District, GO,
Series 1993,
Prerefunded 05/01/03 @
102, 5.300% 05/01/08... A1 A 518
1,000 Cartersville, Georgia,
Development Authority,
Sewer Facilities
Revenue Refunding,
(Anheuser-Busch
Companies, Inc.
Project) Series 1997,
AMT,
6.125% 05/01/27........ A1 A+ 1,016
1,000 Clayton County, Georgia,
Water and Sewer
Authority, Revenue,
Series 2000,
5.600% 05/01/18........ Aa3 AA 1,007
500 Columbia County, Georgia,
School District, GO,
Series 1994A, (MBIA
Insured),
6.250% 04/01/13........ Aaa AAA 536
1,000 DeKalb County, Georgia,
Development Authority,
Revenue, (Emory
University Project)
Series 1994A,
6.000% 10/01/14........ Aa1 AA 1,041
1,000 DeKalb County, Georgia,
GO Refunding, Series
1993,
5.250% 01/01/20........ Aa1 AA+ 957
2,490 East Point, Georgia,
Building Authority,
Revenue, Series 2000,
(FSA Insured),
6.000%(+) 02/01/19..... Aaa AAA 848
1,000 Effingham County,
Georgia, Development
Authority, Solid Waste
Disposal Revenue, (Fort
James Corporation
Project) Series 1998,
AMT,
5.625% 07/01/18........ Baa2 BBB- 925
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 500 Fayette County, Georgia,
School District, GO,
Series 1994,
6.125% 03/01/15........ Aa3 A+ $ 533
1,000 Forsyth County, Georgia,
School District, GO,
Series 1999,
6.000% 02/01/15........ Aa2 AA- 1,063
1,000 Fulco, Georgia, Hospital
Authority, Revenue
Anticipation
Certificates, (St.
Joseph Hospital
Project) Series 1994,
5.500% 10/01/14........ Aaa NR 1,023
500 Fulton County, Georgia,
Development Authority,
Revenue, (Clark Atlanta
University Project)
Series 1995, (CONNIE
LEE Insured),
5.125% 01/01/10........ Baa3 AAA 505
1,300 Fulton County, Georgia,
Water and Sewer
Revenue, Series 1998,
4.750% 01/01/20........ A1 AA- 1,139
1,000 Georgia State, GO, Series
1999D,
5.800% 11/01/13........ Aaa AAA 1,066
1,200 Georgia State, Housing
and Finance Authority,
Single-Family Mortgage
Revenue, Series
1998B-3,
4.400% 06/01/17........ Aa2 AAA 1,183
1,075 Georgia State, Housing
and Finance Authority,
Single-Family Mortgage
Revenue, Series
1999B-2,
6.100% 06/01/31........ Aa2 AAA 1,086
1,000 Georgia, George L. Smith
II World Congress
Center Authority,
Revenue Refunding,
(Domed Stadium Project)
Series 2000, AMT, (MBIA
Insured),
6.000% 07/01/05(a)..... Aaa AAA 1,055
500 Hall County, Georgia,
School District, GO
Refunding, Series 1997,
(State Aid
Withholding),
4.500% 11/01/14........ Aa2 NR 446
1,000 Henry County, Georgia,
Hospital Authority,
Revenue, (Henry Medical
Center Project) Series
1997, Prerefunded
07/01/07 @ 102, (AMBAC
Insured),
6.000% 07/01/29........ Aaa AAA 1,036
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 70
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$ 500 Lawrenceville, Georgia,
Housing Authority,
Multi-Family Housing
Revenue, (Knollwood
Park, LP Project)
Series 1997, AMT, (FNMA
COLL), Mandatory Put
06/01/15 @ 100,
6.250% 12/01/29........ NR AAA $ 512
1,000 Metropolitan Atlanta
Rapid Transit
Authority, Georgia,
Revenue, Series 1998B,
(MBIA Insured),
5.100% 07/01/15........ Aaa AAA 968
500 Peach County, Georgia,
School District, GO,
Series 1994, (State Aid
Withholding, MBIA
Insured),
6.500% 02/01/08........ Aaa AAA 553
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue Refunding,
(Mercer University
Project) Series 1999A,
5.250% 10/01/20........ A3 NR 928
1,000 Private Colleges and
Universities Facilities
Authority, Georgia,
Revenue Refunding,
(Mercer University
Project) Series 1999A,
5.375% 10/01/29........ A3 NR 922
1,000 Roswell, Georgia, GO,
Series 1995,
5.600% 02/01/10........ Aaa AAA 1,040
500 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue Refunding,
(Candler Hospital
Project) Series 1992,
Prerefunded 01/01/03 @
102,
7.000% 01/01/23........ Ba1 BB 534
450 Savannah, Georgia,
Hospital Authority,
Hospital Improvement
Revenue,
(St. Joseph's Hospital
Project) Series 1993,
Prerefunded 07/01/03 @
102, 6.125% 07/01/12... A2 NR 476
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GEORGIA -- (CONTINUED)
$1,000 Savannah, Georgia,
Hospital Authority,
Revenue,
(St. Josephs - Candler
Health Systems Project)
Series 1998B, (FSA
Insured),
5.250% 07/01/10........ Aaa NR $ 1,019
500 Union County, Georgia,
Housing Authority,
Multi-Family Housing
Revenue Refunding,
(Hidden Lake Apartments
Ltd. Project) Series
1994A, (FHA/ FNMA
COLL),
7.125% 12/01/25........ Aaa NR 523
1,000 White County, Georgia,
Industrial Development
Authority, Revenue
Refunding, (Springs
Industries, Inc.
Project) Series 1992,
6.850% 06/01/10........ NR BBB+ 1,013
--------
26,938
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $26,273)......................... 26,938
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.7%
(Cost $723)
723 Nations Municipal Reserves#............ 723
-------
TOTAL INVESTMENTS
(Cost $26,996*)............... 103.1% 27,661
-------
OTHER ASSETS AND LIABILITIES
(NET)......................... (3.1)%
Cash................................... $ 1
Interest receivable.................... 462
Payable for Fund shares redeemed....... (1)
Administration fee payable............. (4)
Shareholder servicing and distribution
fees payable......................... (9)
Distributions payable.................. (98)
Payable for investment securities
purchased............................ (1,139)
Accrued Trustees'/Directors' fees and
expenses............................. (22)
Accrued expenses and other
liabilities.......................... (22)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ (832)
-------
NET ASSETS...................... 100.0% $26,829
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 71
NATIONS FUNDS
Nations Georgia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
-------------------------------------------------------------
<C> <S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 49
Accumulated net realized loss on
investments sold..................... (931)
Net unrealized appreciation of
investments.......................... 665
Paid-in capital........................ 27,046
-------
NET ASSETS............................. $26,829
=======
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($15,217,300 / 1,579,152 shares
outstanding)......................... $9.64
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($1,773,365 / 184,015
shares outstanding).................. $9.64
=====
Maximum sales charge................... 4.75%
Maximum offering price per share....... $10.12
INVESTOR B SHARES:
Net asset value and offering price per
share** ($9,783,689 / 1,015,087
shares outstanding).................. $9.64
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($55,075 / 5,712 shares
outstanding)......................... $9.64
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $665 on
investment securities was comprised of gross appreciation of $824 and gross
depreciation of $159 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$26,996.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Georgia Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
MBIA 13.39%
Nations Georgia Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
General Obligations 22.17%
Housing Revenue 12.63%
Education Revenue 12.29%
Industrial Development Revenue/
Pollution Control Revenue 10.64%
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 72
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 101.6%
KANSAS -- 94.4%
$ 1,000 Butler County, Kansas,
Unified School District
Number 402, GO
Refunding, Series 1994,
(FSA Insured),
5.000% 10/01/07........ Aaa AAA $ 1,009
1,000 Douglas County, Kansas,
Unified School District
Number 497, GO, Series
1995A,
5.700% 09/01/05........ Aa3 NR 1,027
1,860 Fairway, Kansas,
Industrial Revenue
Refunding, (JC Nichols
Company Project) Series
1998, (GTY AGMT),
4.400% 03/01/03........ NR AA 1,840
570 Holton, Kansas,
Industrial Revenue
Refunding, (Wal-Mart
Stores Inc. Project)
Series 1991,
6.750% 01/01/06........ NR AA 572
1,185 Johnson County, Kansas,
Unified School District
Number 223, GO
Refunding, Series 1994,
(AMBAC Insured),
5.500% 09/01/04........ Aaa AAA 1,225
1,705 Johnson County, Kansas,
Unified School District
Number 229, GO
Refunding, Series
1993A, (FGIC Insured),
5.400% 10/01/04........ Aaa AAA 1,744
1,500 Johnson County, Kansas,
Unified School District
Number 229, GO
Refunding, Series
1993A, (FGIC Insured),
5.800% 10/01/08........ Aaa AAA 1,542
500 Johnson County, Kansas,
Unified School District
Number 229, GO, Series
1991A,
6.100% 10/01/02........ Aa1 AA 507
1,180 Johnson County, Kansas,
Unified School District
Number 229, GO, Series
1994A,
6.250% 10/01/03........ Aa1 AA 1,237
1,165 Johnson County, Kansas,
Unified School District
Number 231, GO
Refunding, Series
1998A, (FGIC Insured),
4.550% 10/01/08........ Aaa AAA 1,145
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 1,130 Johnson County, Kansas,
Unified School District
Number 231, GO
Refunding, Series
1998A, (FGIC Insured),
4.600% 10/01/09........ Aaa AAA $ 1,107
1,260 Johnson County, Kansas,
Unified School District
Number 231, GO
Refunding, Series
1998A, (FGIC Insured),
4.700% 10/01/10........ Aaa AAA 1,235
1,250 Johnson County, Kansas,
Unified School District
Number 233, GO
Refunding, Series 1992,
(AMBAC Insured),
6.000% 09/01/06........ Aaa AAA 1,285
750 Johnson County, Kansas,
Unified School District
Number 233, GO
Refunding, Series 1994,
(AMBAC Insured),
5.500% 09/01/05........ Aaa AAA 776
750 Johnson County, Kansas,
Unified School District
Number 233, GO
Refunding, Series 1994,
(AMBAC Insured),
5.625% 09/01/07........ Aaa AAA 779
2,760 Johnson County, Kansas,
Unified School District
Number 233, GO, Series
1999A, (FGIC Insured),
5.375% 09/01/14........ Aaa NR 2,791
1,000 Johnson County, Kansas,
Unified School District
Number 512, Shawnee
Mission, GO Refunding,
Series 1996,
4.450% 10/01/05........ Aa1 AA 995
1,250 Johnson County, Kansas,
Unified School District
Number 512, Shawnee
Mission, GO Refunding,
Series 1996B,
4.850% 10/01/08........ Aa1 AA 1,256
1,510 Johnson County, Kansas,
Unified School District
Number 512, Shawnee
Mission, GO, Series
1995,
5.200% 10/01/07........ Aa1 AA 1,545
1,380 Johnson County, Kansas,
Unified School District
Number 512, Shawnee
Mission, GO, Series
1995,
5.200% 10/01/08........ Aa1 AA 1,405
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 73
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 600 Johnson County, Kansas,
Water District Number
001, Water Revenue
Refunding, Series 1991,
6.000% 12/01/01........ Aa1 AA+ $ 606
500 Johnson County, Kansas,
Water District Number
001, Water Revenue
Refunding, Series 1991,
6.100% 06/01/02........ Aa1 AA+ 505
750 Johnson County, Kansas,
Water District Number
001, Water Revenue
Refunding, Series 1993,
4.750% 06/01/04........ Aa1 AA+ 754
720 Johnson County, Kansas,
Water District Number
001, Water Revenue
Refunding, Series 1993,
4.750% 12/01/04........ Aa1 AA+ 724
750 Johnson County, Kansas,
Water District Number
001, Water Revenue
Refunding, Series 1993,
4.800% 06/01/05........ Aa1 AA+ 754
595 Junction City, Kansas,
Water and Sewer,
Revenue, Series 1996A,
(MBIA Insured),
4.900% 09/01/07........ Aaa AAA 608
500 Kansas City, Kansas,
Hospital Revenue
Refunding, (Sisters
Charity Health Services
Project) Series 1992,
5.600% 08/01/02........ Aa NR 508
500 Kansas City, Kansas,
Hospital Revenue
Refunding, (Sisters
Charity Health Services
Project) Series 1992,
5.800% 08/01/04........ Aa NR 518
2,230 Kansas City, Kansas,
Utilities System
Revenue, Series 1994,
Prerefunded, (FGIC
Insured),
6.375% 09/01/23........ Aaa AAA 2,413
1,200 Kansas State, Department
of Transportation
Highway, Revenue,
Series 1992,
6.000% 03/01/02........ Aa2 AA+ 1,225
895 Kansas State, Department
of Transportation,
Highway Revenue, Series
1992A,
5.800% 09/01/05........ Aa2 AA+ 933
1,000 Kansas State, Department
of Transportation,
Highway Revenue, Series
1993,
4.800% 03/01/02........ Aa2 AA+ 1,005
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 1,055 Kansas State, Department
of Transportation,
Highway Revenue, Series
1994,
4.800% 09/01/08........ Aa2 AA+ $ 1,058
955 Kansas State, Development
Financing Authority,
Revenue, (Sisters of
Charity Leavenworth
Project) Series 1998,
5.000% 12/01/14........ Aaa AAA 910
735 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Hays Medical
Center Inc. Project)
Series 1997B, (MBIA
Insured),
4.800% 11/15/04........ Aaa NR 740
670 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Hays Medical
Center Inc. Project)
Series 1997B, (MBIA
Insured),
4.900% 11/15/05........ Aaa NR 677
510 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Hays Medical
Center Inc. Project)
Series 1997B, (MBIA
Insured),
5.000% 11/15/06........ Aaa NR 517
4,190 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Sisters of
Charity Project) Series
2000J,
6.250% 12/01/28........ Aa3 AA 4,295
620 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (St.
Lukes/Shawnee Mission
Project) Series 1996N,
(MBIA Insured),
4.700% 11/15/05........ Aaa AAA 620
675 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (St.
Lukes/Shawnee Mission
Project) Series 1996N,
(MBIA Insured),
4.750% 11/15/06........ Aaa AAA 676
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 74
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 605 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (St.
Lukes/Shawnee Mission
Project) Series 1996P,
(MBIA Insured),
4.700% 11/15/05........ Aaa AAA $ 605
630 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (St.
Lukes/Shawnee Mission
Project) Series 1996P,
(MBIA Insured),
4.750% 11/15/06........ Aaa AAA 631
740 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Stormont-Vail
Healthcare Inc.
Project) Series 1996F,
(MBIA Insured),
5.600% 11/15/07........ Aaa AAA 770
500 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Stormont-Vail
Healthcare Inc.
Project) Series 1996F,
(MBIA Insured),
5.750% 11/15/09........ Aaa AAA 521
730 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Stormont-Vail
Healthcare Inc.
Project) Series 1996G,
(MBIA Insured),
5.750% 11/15/09........ Aaa AAA 760
890 Kansas State, Development
Financing Authority,
Health Facilities
Revenue, (Stormont-Vail
Healthcare Inc.
Project), Series 1996G,
(MBIA Insured),
5.700% 11/15/08........ Aaa AAA 928
10,000 Kansas State, Development
Financing Authority,
Revenue, (Board of
Regents Rehab Project)
Series 1997G-2,
5.000% 10/01/10........ Aaa AAA 10,048
500 Kansas State, Development
Financing Authority,
Revenue, (Department of
Corrections El Dorado
Project) Series 1992L,
(MBIA Insured),
5.500% 02/01/02........ Aaa AAA 506
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 2,785 Kansas State, Development
Financing Authority,
Revenue, (Public Water
Supply Revolving
Project) Series 1997,
(AMBAC Insured),
5.000% 04/01/17........ Aaa NR $ 2,618
3,700 Kansas State, Development
Financing Authority,
Revenue, (Public Water
Supply Revolving
Project) Series 1997,
(AMBAC Insured),
5.000% 04/01/20........ Aaa NR 3,401
1,000 Kansas State, Development
Financing Authority,
Revenue, (Public Water
Supply Revolving
Project) Series 1998,
4.750% 04/01/18........ A2 NR 879
1,000 Kansas State, Development
Financing Authority,
Revenue, (Public Water
Supply Revolving
Project) Series 1998,
5.000% 04/01/21........ A2 NR 901
1,000 Kansas State, Development
Financing Authority,
Revenue, (Water
Pollution Control
Project) Series 1993I,
5.300% 11/01/02........ Aa1 AA+ 1,016
1,000 Kansas State, Development
Financing Authority,
Revenue, (Water
Pollution Control
Project) Series 1993II,
5.400% 11/01/03........ Aa1 AA+ 1,025
845 Kansas State, Development
Financing Authority,
Revenue, Series 1992L,
Unrefunded Balance,
(MBIA Insured),
5.625% 08/01/03........ Aaa AAA 856
1,150 Kansas, University
Hospital Authority,
Revenue, (Kansas
University Health
System Project) Series
1999A, (AMBAC Insured),
5.250% 09/01/11........ Aaa AAA 1,165
1,265 Kansas, University
Hospital Authority,
Revenue, (Kansas
University Health
System Project) Series
1999A, (AMBAC Insured),
5.350% 09/01/12........ Aaa AAA 1,281
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE> 75
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 1,525 Kansas, University
Hospital Authority,
Revenue, (Kansas
University Health
System Project) Series
1999A, (AMBAC Insured),
5.400% 09/01/13........ Aaa AAA $ 1,541
2,000 Leavenworth County,
Kansas, GO, Series
1997A, (AMBAC Insured),
4.900% 12/01/06........ Aaa AAA 2,024
1,000 Lenexa, Kansas, GO,
Series 1991B,
6.200% 09/01/01........ Aa2 AA 1,016
1,425 Lenexa, Kansas,
Industrial Revenue, (WW
Grainger Inc. Project)
Series 1983,
4.500% 12/15/08........ NR AA- 1,373
575 Pottawatomie County,
Kansas, Unified School
District Number 320, GO
Refunding, Series 1990,
(AMBAC Insured),
6.500% 10/01/01........ Aaa AAA 586
950 Reno County, Kansas,
Unified School District
Number 308, Hutchinson,
GO, Series 1995, (FSA
Insured),
5.500% 09/01/07........ Aaa AAA 982
860 Reno County, Kansas,
Unified School District
Number 313, GO, Series
1996B, (FSA Insured),
5.900% 09/01/08........ Aaa AAA 924
925 Reno County, Kansas,
Unified School District
Number 313, GO, Series
1996B, (FSA Insured),
5.900% 09/01/09........ Aaa AAA 997
995 Reno County, Kansas,
Unified School District
Number 313, GO, Series
1996B, (FSA Insured),
5.900% 09/01/10........ Aaa AAA 1,071
500 Salina, Kansas, Hospital
Revenue Refunding,
(Asbury-Salina Regional
Medical Center Project)
Series 1993, (AMBAC
Insured),
5.100% 10/01/06........ Aaa AAA 505
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 500 Salina, Kansas, Water and
Sewer, Revenue
Refunding, Series 1994,
(MBIA Insured),
4.800% 09/01/05........ Aaa AAA $ 501
710 Salina, Kansas, Water and
Sewer, Revenue
Refunding, Series 1994,
(MBIA Insured),
4.900% 09/01/06........ Aaa AAA 712
1,010 Saline County, Kansas,
Unified School District
Number 305, Salina, GO
Refunding, Series 1999,
(FSA Insured),
5.250% 09/01/13........ Aaa NR 1,011
1,000 Sedgwick County, Kansas,
Public Building
Commission, Revenue,
(Exploration Place
Project) Series 1997A,
5.125% 08/01/22........ Aa1 AA 926
10 Sedgwick County, Kansas,
Single-Family Mortgage,
Revenue Refunding,
Series 1994B-II, (GNMA
COLL),
5.500% 11/01/04........ Aaa NR 10
1,000 Sedgwick County, Kansas,
Unified School District
Number 260, GO
Refunding, Series 1993,
(AMBAC Insured),
4.750% 10/01/02........ Aaa AAA 1,000
1,000 Sedgwick County, Kansas,
Unified School District
Number 265, Goddard,
GO, Series 1994, (FSA
Insured),
5.350% 10/01/04........ Aaa AAA 1,029
1,000 Sedgwick County, Kansas,
Unified School District
Number 265, Goddard,
GO, Series 1994, (FSA
Insured),
5.400% 10/01/05........ Aaa AAA 1,031
1,250 Sedgwick County, Kansas,
Unified School District
Number 265, Goddard,
GO, Series 1994, (FSA
Insured),
5.500% 10/01/06........ Aaa AAA 1,294
785 Sedgwick County, Kansas,
Unified School District
Number 266, Maize, GO,
Series 1994B, (FSA
Insured),
5.700% 09/01/07........ Aaa AAA 810
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE> 76
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 845 Sedgwick County, Kansas,
Unified School District
Number 266, Maize, GO,
Series 1994B, (FSA
Insured),
5.800% 09/01/08........ Aaa AAA $ 874
500 Sedgwick County, Kansas,
Unified School District
Number 267, GO
Refunding, Series 1995,
(AMBAC Insured),
6.100% 11/01/08........ Aaa AAA 535
755 Sedgwick County, Kansas,
GO Refunding, Series
1993B,
4.700% 08/01/05........ Aa1 AA+ 755
1,245 Sedgwick County, Kansas,
Unified School District
Number 266, Maize, GO,
Series 1994B,
6.500% 09/01/02........ Aaa AAA 1,291
500 Shawnee County, Kansas,
GO Refunding, Series
1992C,
5.500% 09/01/03........ Aa3 NR 509
500 Shawnee County, Kansas,
Health Care Facilities
Revenue Refunding,
(Menninger Foundation
Project) Series 1995,
(FSA Insured),
5.000% 08/15/07........ Aaa AAA 505
500 Shawnee County, Kansas,
Health Care Facilities
Revenue Refunding,
(Menninger Foundation
Project) Series 1995,
(FSA Insured),
5.100% 08/15/09........ Aaa AAA 504
530 Shawnee County, Kansas,
Revenue, (Sisters
Charity Leavenworth
Project) Series 1994,
4.800% 12/01/05........ Aa3 AA 530
555 Shawnee County, Kansas,
Revenue, (Sisters
Charity Leavenworth
Project) Series 1994,
4.900% 12/01/06........ Aa3 AA 556
895 Shawnee County, Kansas,
Unified School District
Number 345, Seaman, GO,
Series 1994, (MBIA
Insured),
5.400% 09/01/06........ Aaa AAA 922
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 950 Shawnee County, Kansas,
Unified School District
Number 345, Seaman, GO,
Series 1994, (MBIA
Insured),
5.500% 09/01/07........ Aaa AAA $ 982
500 Shawnee County, Kansas,
Unified School District
Number 437, Auburn -
Washburn, GO Refunding,
Series 1992, (FGIC
Insured),
6.100% 09/01/02........ Aaa AAA 511
795 Shawnee County, Kansas,
Unified School District
Number 437, Auburn -
Washburn, GO Refunding,
Series 1992, (FGIC
Insured),
6.400% 03/01/05........ Aaa AAA 814
1,050 Shawnee County, Kansas,
Unified School District
Number 501, GO, Series
1995, (FGIC Insured),
5.300% 02/01/04........ Aaa AAA 1,068
1,000 Wichita, Kansas, GO
Refunding, Series
1993D,
4.500% 03/01/04........ Aa2 AA 1,000
1,000 Wichita, Kansas, GO
Refunding, Series
1993D,
4.600% 03/01/05........ Aa2 AA 1,001
1,000 Wichita, Kansas, GO,
Series 1993,
4.400% 03/01/03........ Aa2 AA 999
500 Wichita, Kansas, Hospital
Revenue Refunding, (St.
Frances - III Project)
Series 1992A-3,
5.800% 10/01/01........ Aaa AAA 507
500 Wichita, Kansas, Public
Building Community,
Revenue Refunding,
(Witchita State
University Project)
Series 1992G-1, (AMBAC
Insured),
5.200% 02/01/03........ Aaa AAA 504
1,175 Wichita, Kansas, Water
and Sewer Utilities,
Revenue Refunding,
Series 1993B, (FGIC
Insured),
5.400% 10/01/02........ Aaa AAA 1,187
1,225 Wichita, Kansas, Water
and Sewer Utilities,
Revenue Refunding,
Series 1993B, (FGIC
Insured),
5.550% 10/01/03........ Aaa AAA 1,237
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE> 77
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
KANSAS -- (CONTINUED)
$ 1,000 Wichita, Kansas, Water
and Sewer Utilities,
Revenue Refunding,
Series 1993B, (FGIC
Insured),
5.500% 10/01/04........ Aaa AAA $ 1,010
5,260 Wyandotte County Kansas
City, Kansas, Unified
Government Utilities
System, Revenue
Refunding, Series 1998,
(MBIA Insured),
5.000% 09/01/07........ Aaa AAA 5,344
--------
115,467
--------
ALASKA -- 1.0%
2,000 North Slope Borough,
Alaska, Capital
Appreciation GO, Series
2000B, (MBIA Insured),
5.110%(+) 06/30/09..... Aaa AAA 1,279
--------
ILLINOIS -- 2.9%
3,675 Chicago, Illinois, Water
Revenue, Capital
Appreciation, Series
1997, (FGIC Insured),
5.200%(+) 11/01/10..... Aaa AAA 2,196
--------
2,200 Southern, Illinois,
University Revenue,
Capital Appreciation,
(Housing and Auxillary
Facilities Systems
Project) Series 1997,
(MBIA Insured),
5.100%(+) 04/01/10..... Aaa AAA 1,354
--------
3,550
--------
OHIO -- 1.7%
2,000 Dayton, Ohio, Special
Facilities Revenue,
(Air Freight
Corporation Project)
Series 1988D, AMT,
6.200% 10/01/09........ NR BBB 2,026
--------
TEXAS -- 1.6%
2,000 Dallas-Fort Worth, Texas,
International Airport
Facilities Improvement,
Corporate Revenue
Refunding, (American
Airlines Project)
Series 2000C, AMT,
6.150% 05/01/29........ Baa1 BBB- 2,007
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $123,657)........................ 124,329
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.4%
(Cost $498)
498 Nations Municipal Reserves#........... $ 498
--------
TOTAL INVESTMENTS
(Cost $124,155*)............. 102.0% 124,827
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (2.0)%
Cash.................................. $ 7
Receivable for investment securities
sold................................ 1,011
Interest receivable................... 1,896
Payable for Fund shares redeemed...... (173)
Investment advisory fee payable....... (16)
Administration fee payable............ (20)
Distributions payable................. (458)
Payable for investment securities
purchased........................... (4,610)
Accrued Trustees'/Directors' fees and
expenses............................ (2)
Accrued expenses and other
liabilities......................... (96)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (2,461)
--------
NET ASSETS..................... 100.0% $122,366
========
NET ASSETS CONSIST OF:
Accumulated net realized gain on
investments sold.................... $ 16
Net unrealized appreciation of
investments......................... 672
Paid-in capital....................... 121,678
--------
NET ASSETS............................ $122,366
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($120,803,978 / 12,076,305 shares
outstanding)........................ $10.00
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($1,313,245 / 131,338
shares outstanding)................. $10.00
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.34
INVESTOR B SHARES:
Net asset value and offering price per
share** ($248,247 / 24,827 shares
outstanding)........................ $10.00
======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE> 78
NATIONS FUNDS
Nations Kansas Municipal Income Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
---------------
* Federal Income Tax Information: Net unrealized appreciation of $672 on
investment securities was comprised of gross appreciation of $1,626 and gross
depreciation of $954 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$124,155.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations Kansas Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
MBIA 16.76%
FGIC 16.34%
AMBAC 15.71%
Nations Kansas Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
General Obligations 31.22%
Hospital Revenue 16.61%
Water Revenue 16.57%
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE> 79
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.1%
MARYLAND -- 91.4%
$1,000 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1991B,
6.200% 04/15/03......... Aa1 AA+ $ 1,029
1,000 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1993,
5.125% 07/15/08......... Aa2 AA+ 1,019
2,855 Anne Arundel County,
Maryland, GO, Series
1995,
5.200% 04/01/08......... Aa1 AA+ 2,939
1,000 Baltimore County,
Maryland, Consolidated
Public Improvement GO,
Series 1991,
6.100% 07/01/01......... Aaa AAA 1,013
1,375 Baltimore County,
Maryland, Metropolitan
District, Special
Assignment GO Refunding,
Series 1992,
5.750% 05/01/02......... Aaa AAA 1,404
1,000 Baltimore County,
Maryland, Metropolitan
District, Special
Assignment GO Refunding,
Series 1992,
5.800% 05/01/03......... Aaa AAA 1,034
1,720 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1991C, (FGIC Insured),
6.200% 10/15/02......... Aaa AAA 1,778
1,075 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1991C, (FGIC Insured),
6.375% 10/15/07......... Aaa AAA 1,181
1,000 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1993A, (AMBAC Insured),
5.300% 10/15/06......... Aaa AAA 1,019
1,740 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1997A, (FGIC Insured),
5.300% 10/15/16......... Aaa AAA 1,723
1,000 Baltimore, Maryland,
Convention Center
Revenue Refunding,
Series 1998, (MBIA
Insured),
5.000% 09/01/06......... Aaa AAA 1,018
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,725 Baltimore, Maryland,
Exchanged Revenue,
Series 1996A, (FGIC
Insured),
5.900% 07/01/10......... Aaa AAA $ 1,863
1,000 Baltimore, Maryland, GO,
Series 1989B, (MBIA
Insured),
7.000% 10/15/04......... Aaa AAA 1,087
1,000 Baltimore, Maryland, GO,
Series 1989B, (MBIA
Insured),
7.050% 10/15/07......... Aaa AAA 1,137
1,750 Baltimore, Maryland, Port
Facilities Revenue,
(E.I. duPont de Nemours
Project) Series 1985,
6.500% 12/01/10......... Aa3 AA- 1,844
1,000 Baltimore, Maryland,
Revenue Refunding,
(Wastewater Projects)
Series 1993A, (MBIA
Insured),
5.100% 07/01/04......... Aaa AAA 1,019
1,000 Baltimore, Maryland,
Revenue Refunding,
(Wastewater Projects)
Series 1994A, (FGIC
Insured),
5.000% 07/01/22......... Aaa AAA 927
1,000 Baltimore, Maryland,
Revenue Refunding,
(Wastewater Projects)
Series 1994A, (FGIC
Insured),
5.000% 07/01/24......... Aaa AAA 922
500 Carroll County, Maryland,
Consolidated Public
Improvement GO, Series
1990, Prerefunded
10/01/00 @ 102,
6.900% 10/01/02......... Aaa AA 510
1,350 Carroll County, Maryland,
Consolidated Public
Improvement GO, Series
1991,
6.000% 11/01/00......... Aa3 AA 1,352
1,000 Cecil County, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1993,
(FGIC Insured),
5.300% 12/01/00......... Aaa AAA 1,001
1,810 Charles County, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1992,
(AMBAC Insured),
5.900% 01/15/03......... Aaa AAA 1,865
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE> 80
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 750 Charles County, Maryland,
Consolidated Public
Improvement GO, Series
1991, Prerefunded
06/01/01 @ 102,
6.450% 06/01/04......... Aaa AA $ 775
2,135 Frederick County,
Maryland, GO Refunding,
Series 1993,
5.350% 07/01/05......... Aa2 AA 2,195
1,000 Frederick County,
Maryland, GO, Series
1991B,
6.300% 07/01/06......... Aa2 AA 1,046
2,000 Frederick, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1992,
(FGIC Insured),
5.750% 12/01/01......... Aaa AAA 2,031
2,240 Frederick, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1992,
(FGIC Insured),
6.000% 12/01/05......... Aaa AAA 2,345
600 Harford County, Maryland,
GO, Series 1991,
Prerefunded 12/01/00 @
102,
6.100% 12/01/04......... Aaa AAA 614
1,455 Harford County, Maryland,
Public Improvement GO,
Series 1992,
5.300% 09/01/03......... Aa2 AA 1,489
1,545 Howard County, Maryland,
Consolidated Public
Improvement GO
Refunding, Series 1993A,
5.000% 08/15/03......... Aaa AAA 1,570
20 Howard County, Maryland,
Consolidated Public
Improvement GO,
Prerefunded, Series
1993A, Prerefunded
08/15/05 @ 100,
5.250% 08/15/06......... Aaa AAA 21
1,500 Howard County, Maryland,
Consolidated Public
Improvement GO, Series
2000A,
5.250% 02/15/16(a)...... Aaa AAA 1,491
2,000 Howard County, Maryland,
Consolidated Public
Improvement GO, Series
2000A,
5.250% 02/15/18......... Aaa AAA 1,964
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Howard County, Maryland,
Metropolitan District,
GO Refunding, Series
1991B,
6.000% 08/15/03(a)...... Aaa AAA $ 1,042
1,980 Howard County, Maryland,
Public Improvement GO,
Unrefunded Balance,
Series 1993A,
5.250% 08/15/06......... Aaa AAA 2,040
1,530 Laurel, Maryland, Public
Improvement GO
Refunding, 1996A, (FGIC
Insured),
5.000% 10/01/11......... Aaa AAA 1,533
1,000 Maryland State Economic
Development Corporation,
Student Housing Revenue,
Series 1999A,
5.700% 06/01/12......... Baa3 NR 990
815 Maryland State Economic
Development Corporation,
Student Housing Revenue,
Series 1999A,
6.000% 06/01/19......... Baa3 NR 789
1,200 Maryland State,
Certificates of
Participation Refunding,
(State Highway and Motor
Vehicle Administration
Project) Series 1992,
5.700% 06/01/01......... Aa3 AA- 1,210
1,200 Maryland State,
Certificates of
Participation Refunding,
(State Highway and Motor
Vehicle Administration
Project) Series 1992,
5.800% 06/01/02......... Aa3 AA- 1,225
1,410 Maryland State,
Certificates of
Participation, Revenue,
(Aviation Administration
Facilities Project)
Series 1999, AMT,
4.750% 05/01/07......... Aa3 AA 1,412
1,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1997-1, (FHA
Insured),
4.950% 04/01/07......... Aa2 NR 1,010
2,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1998-1, AMT,
5.150% 04/01/18......... Aa2 NR 1,859
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE> 81
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$4,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1998-3, AMT,
4.500% 04/01/08......... Aa2 NR $ 3,866
1,685 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Single-Family Program)
Series 1998-3, AMT,
4.700% 04/01/10......... Aa2 NR 1,622
3,250 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999A, AMT,
5.350% 07/01/41......... Aa2 NR 2,934
2,410 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999D, AMT,
5.375% 09/01/24......... Aa2 NR 2,258
2,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999H, AMT,
6.000% 09/01/17......... Aa2 NR 2,033
3,900 Maryland State, Community
Development
Administration,
Development Revenue,
(Lexington Terrace
Senior Housing, LP
Project) Series 1998B,
AMT,
3.900% 10/01/02......... Aaa NR 3,845
3,000 Maryland State, Community
Development
Administration,
Development Revenue,
(Lexington Terrace
Townhomes, LP Project)
Series 1998A, AMT,
3.900% 10/01/02......... Aaa NR 2,958
2,000 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Collegiate Housing
Project) Series 1999A,
5.750% 06/01/29......... Baa3 NR 1,828
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 500 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Salisbury Collegiate
Housing Project) Series
1999A,
6.000% 06/01/30......... Baa3 NR $ 465
950 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
Series 1999A,
5.600% 06/01/10......... Baa3 NR 947
1,000 Maryland State, GO, Series
1998,
5.000% 07/15/11......... Aaa AAA 1,009
2,700 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.250% 07/01/04......... Aa3 AA- 2,763
1,500 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.400% 07/01/06......... Aa3 AA- 1,546
3,050 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.500% 07/01/07......... Aa3 AA- 3,149
1,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(University of Maryland
Medical Systems Project)
Series 1993, (FGIC
Insured),
5.200% 07/01/04......... Aaa AAA 1,021
510 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (College of
Notre Dame Project)
Series 1998, (MBIA
Insured),
4.600% 10/01/14......... Aaa AAA 472
620 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Howard County
General Hospital
Project) Series 1993,
5.125% 07/01/03......... Aaa NR 625
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE> 82
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Howard County
General Hospital
Project) Series 1993,
5.500% 07/01/13......... Aaa NR $ 1,026
1,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Howard County
General Hospital
Project) Series 1993,
5.500% 07/01/21......... Aaa NR 997
2,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (John Hopkins
Hospital Redevelopment
Project) Series 1979,
5.750% 07/01/09......... Aaa AAA 2,140
1,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Johns Hopkins
Medical Project) Series
1998,
5.000% 07/01/29......... Aaa AAA 905
1,500 Maryland State, State and
Local Facilities Loan
GO, Series 1995-2,
5.000% 10/15/04......... Aaa AAA 1,531
1,550 Maryland State, State and
Local Facilities Loan
GO, Series 1996-2,
5.250% 06/15/11......... Aaa AAA 1,594
1,970 Maryland State, State and
Local Facilities Loan
GO, Series 2000,
5.750% 08/01/11......... Aaa AAA 2,115
930 Maryland State,
Transportation
Authority, Revenue,
(Transportation
Facilities Project)
Series 1978,
6.625% 07/01/03......... Aaa AAA 960
2,300 Maryland State,
Transportation
Authority,
Transportation Revenue,
Series 1991,
6.500% 07/01/04......... A1 A+ 2,376
4,000 Maryland State,
Transportation
Authority,
Transportation Revenue,
Series 1992,
5.700% 07/01/05......... A1 A+ 4,186
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,800 Maryland State,
Transportation
Authority,
Transportation Revenue,
Series 1992,
5.800% 07/01/06......... A1 A+ $ 2,962
2,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1992A,
5.600% 07/01/04......... Aaa AAA 2,079
1,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1992A,
5.750% 07/01/06......... Aaa AAA 1,061
500 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1991A,
Prerefunded 04/01/01 @
102,
6.700% 04/01/06......... Aaa AAA 516
3,500 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1993A,
4.900% 10/01/07......... Aaa AAA 3,546
1,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1997A,
5.375% 05/01/08......... Aaa AAA 1,046
1,000 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1997A,
5.375% 05/01/13......... Aaa AAA 1,021
3,000 Montgomery County,
Maryland, GO, Series
1991, Prerefunded
10/01/01 @ 102,
6.100% 10/01/05......... Aaa AAA 3,108
1,000 Montgomery County,
Maryland, GO, Series
1991, Prerefunded
10/01/01 @ 102,
6.125% 10/01/07......... Aaa AAA 1,036
1,500 Montgomery County,
Maryland, Housing
Opportunities
Commission, Multi-Family
Mortgage Revenue, Series
2000A,
6.100% 07/01/30......... Aaa NR 1,513
865 Montgomery County,
Maryland, Housing
Opportunities
Commission,
Single-Family Mortgage
Revenue, Series 1997A,
5.400% 07/01/08......... Aa2 NR 894
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE> 83
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,500 Northeast Maryland, Solid
Waste Disposal Authority
Revenue, (Montgomery
County Resource
Recreation Project)
Series 1993A,
6.000% 07/01/07......... A2 NR $ 1,586
1,535 Northeast Maryland, Solid
Waste Disposal
Authority, Southwest
Research Recovery
Facilities Revenue
Refunding, (Wheelabrator
Technologies Project)
Series 1993, (MBIA
Insured),
7.000% 01/01/01......... Aaa AAA 1,545
630 Ocean City, Maryland, GO
Refunding, Series 1991,
(MBIA Insured),
Prerefunded 11/01/01 @
102,
6.100% 11/01/04......... Aaa AAA 654
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1991,
6.500% 07/01/02......... Aa3 AA 1,034
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1992A,
(MBIA Insured),
5.300% 03/01/01......... Aaa AAA 1,004
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1992A,
(MBIA Insured),
5.400% 03/01/02......... Aaa AAA 1,013
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1992,
5.600% 01/15/03......... Aa3 AA 1,024
1,800 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1992,
5.900% 01/15/06......... Aa3 AA 1,863
2,300 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1999, (FSA
Insured),
5.125% 10/01/16......... Aaa AAA 2,252
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 2000,
5.125% 10/01/08......... Aa3 AA 1,028
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 2000,
5.125% 10/01/10......... Aa3 AA $ 1,024
2,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 2000,
5.250% 10/01/18......... Aa3 AA 1,957
2,500 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 2000,
5.250% 10/01/19......... Aa3 AA 2,433
565 Prince Georges County,
Maryland, Housing
Authority, Single-Family
Mortgage Revenue, Series
2000A, AMT,
6.150% 08/01/19......... NR AAA 574
1,000 Prince Georges County,
Maryland, PCR Refunding,
(Potomac Electric Power
Project) Series 1995,
5.750% 03/15/10......... A1 A 1,062
2,000 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993,
(FSA Insured),
5.100% 06/15/05......... Aaa AAA 2,035
1,200 Queen Annes County,
Maryland, School and
Public Facilities GO,
Series 2000,
5.250% 01/15/14......... Aaa AAA 1,212
1,000 Rockville, Maryland, GO
Refunding, Series 1993,
4.750% 04/15/05......... Aa1 AA+ 1,006
1,000 St. Mary's County,
Maryland, GO, Series
1995, (MBIA Insured),
5.700% 03/01/08......... Aaa AAA 1,058
2,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue Refunding,
Series 1993C,
4.900% 10/01/08......... Aa3 AA+ 2,016
745 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1992A,
6.000% 02/01/04......... Aa3 AA+ 763
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE> 84
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1992A,
6.300% 02/01/08......... Aa3 AA+ $ 1,026
1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1992A,
6.300% 02/01/10......... Aa3 AA+ 1,026
1,020 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1996A,
5.600% 04/01/13......... Aa3 AA+ 1,049
3,115 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1996A,
5.600% 04/01/14......... Aa3 AA+ 3,185
1,975 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 2000A,
5.000% 10/01/08......... Aa3 AA+ 2,017
1,575 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 2000A,
5.250% 10/01/11......... Aa3 AA+ 1,614
1,000 Washington County,
Maryland, Consolidated
Public Improvement GO
Refunding, Series 1993,
(FGIC Insured),
5.250% 01/01/06......... Aaa AAA 1,024
500 Washington County,
Maryland, GO, Series
1990,
6.400% 12/01/00......... A1 A+ 502
1,000 Washington County,
Maryland, Sanitation
District, GO Refunding,
Series 1993F, (FGIC
Insured),
5.250% 01/01/06......... Aaa AAA 1,024
1,260 Washington Suburban
Sanitation District
Authority, Maryland,
General Construction GO,
Series 1991-1,
Prerefunded 06/01/01 @
102,
6.750% 06/01/05......... Aaa AAA 1,304
3,440 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply GO
Refunding, Series 1993,
5.100% 12/01/07......... Aa1 AA 3,513
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,010 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply GO, Series
1992, Prerefunded
06/01/02 @ 102,
5.800% 06/01/03......... Aa1 AA $ 2,091
1,000 Washington Suburban
Sanitation District
Authority, Maryland,
Water Supply GO, Series
1993,
5.000% 06/01/03......... Aa1 AA 1,014
1,000 Washington Suburban
Sanitaton District
Authority, Maryland,
General Construction GO,
Series 2000,
5.250% 06/01/22......... Aa1 AA 964
1,355 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA
Insured),
4.900% 12/01/11......... Aaa AAA 1,347
1,425 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA
Insured),
5.000% 12/01/12......... Aaa AAA 1,416
--------
179,547
--------
ALABAMA -- 1.6%
3,000 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1992,
7.000% 06/01/22......... Baa1 BBB+ 3,076
--------
COLORADO -- 0.7%
3,800 Public Highway Authority
of Colorado, Revenue,
Capital Appreciation,
Series 1997B, (MBIA
Insured),
5.810%(+) 09/01/18...... Aaa AAA 1,361
--------
DISTRICT OF COLUMBIA -- 1.0%
2,000 Washington, District of
Columbia, Metropolitan
Area Transportation
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.000% 07/01/06......... Aaa AAA 2,028
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE> 85
NATIONS FUNDS
Nations Maryland Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
-----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- 1.0%
$2,000 Texas State, Water
Development Board,
Revenue, Series 1997,
5.000% 07/15/12......... Aaa AAA $ 1,968
--------
VIRGINIA -- 1.4%
3,000 Virginia State,
Transportation Board
Authority,
Transportation Contract
Revenue, (Northern
Virginia Transportation
District Project) Series
1996A,
5.125% 05/15/21......... Aa1 AA 2,786
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $187,897)......................... 190,766
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.7%
(Cost $5,305)
5,305 Nations Municipal Reserves#............ 5,305
--------
TOTAL INVESTMENTS
(Cost $193,202*).............. 99.8% 196,071
--------
OTHER ASSETS AND LIABILITIES
(NET)......................... 0.2%
Receivable for investment securities
sold................................. $ 2
Interest receivable.................... 3,194
Payable for Fund shares redeemed....... (124)
Investment advisory fee payable........ (32)
Administration fee payable............. (32)
Shareholder servicing and distribution
fees payable......................... (8)
Distributions payable.................. (751)
Payable for investment securities
purchased............................ (1,833)
Accrued Trustees'/Directors' fees and
expenses............................. (26)
Accrued expenses and other
liabilities.......................... (53)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 337
--------
NET ASSETS...................... 100.0% $196,408
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
------
<C> <S> <C>
NET ASSETS CONSIST OF:
Accumulated net realized loss on
investments sold..................... $ (1,447)
Net unrealized appreciation of
investments.......................... 2,869
Paid-in capital........................ 194,986
--------
NET ASSETS............................. $196,408
========
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($173,814,676 / 16,272,614 shares
outstanding)......................... $10.68
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($16,951,556 / 1,587,137
shares outstanding).................. $10.68
======
Maximum sales charge................... 3.25%
Maximum offering price per share....... $11.04
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,374,931 / 503,240 shares
outstanding)......................... $10.68
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($266,495 / 24,949 shares
outstanding)......................... $10.68
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $2,869 on
investment securities was comprised of gross appreciation of $3,963 and
gross depreciation of $1,094 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $193,202.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Maryland Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
FSA 10.39%
Nations Maryland Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 39.52%
Housing Revenue 15.53%
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE> 86
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.6%
MARYLAND -- 88.6%
$ 500 Anne Arundel County,
Maryland, Consolidated
General Improvement GO
Refunding, Series 1995,
5.300% 04/01/10......... Aa1 AA+ $ 514
500 Anne Arundel County,
Maryland, Consolidated
General Improvement GO,
Series 1993,
5.250% 07/15/11......... Aa2 AA+ 507
1,000 Baltimore, Maryland,
Consolidated Public
Improvement GO, Series
1998B, (FGIC Insured),
6.500% 10/15/08......... Aaa AAA 964
800 Calvert County, Maryland,
PCR Refunding,
(Baltimore Gas and
Electric Company
Project) Series 1993,
5.550% 07/15/14......... A2 A 810
250 Cumberland, Maryland, GO
Refunding, Series 1994A,
(FGIC Insured),
5.250% 05/01/21......... Aaa AAA 241
1,000 Harford County, Maryland,
GO, Series 1997,
5.500% 12/01/07......... Aa2 AA 1,053
1,900 Howard County, Maryland,
Consolidated Public
Improvement GO, Series
2000A,
5.250% 02/15/17(a)...... Aaa AAA 1,875
500 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development,
Multi-Family Revenue,
(Auburn Manor
Apartments, LP Project)
Series 1998A, AMT, (FNMA
COLL),
5.250% 10/01/19......... Aaa NR 470
500 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Residential Project)
Series 1998B, AMT,
4.950% 09/01/11......... Aa2 NR 486
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$ 810 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
(Residential Project)
Series 2000A,
5.500% 09/01/12......... Aa2 NR $ 823
500 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999A, AMT,
5.350% 07/01/41......... Aa2 NR 451
1,000 Maryland State, Community
Development
Administration,
Department of Housing
and Community
Development, Revenue,
Series 1999H, AMT,
6.000% 09/01/17......... Aa2 NR 1,017
495 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Collegiate Housing
Project) Series 1999A,
5.300% 06/01/08......... Baa3 NR 487
575 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Collegiate Housing
Project) Series 1999A,
5.600% 06/01/11......... Baa3 NR 568
2,000 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Collegiate Housing
Project) Series 1999A,
5.750% 06/01/29......... Baa3 NR 1,828
1,000 Maryland State, Economic
Development Corporation,
Student Housing Revenue,
(Salisbury Collegiate
Housing Project) Series
1999A,
6.000% 06/01/30......... Baa3 NR 930
300 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue Refunding,
(Johns Hopkins Hospital
Project) Series 1993,
5.600% 07/01/09......... Aa3 AA- 309
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE> 87
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$2,000 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Johns Hopkins
University Project)
Series 1999,
6.000% 07/01/39......... Aa2 AA $ 2,090
330 Maryland State, Health and
Higher Education
Facilities Authority,
Revenue, (Loyola College
Project) Series 1999,
5.000% 10/01/39......... A2 A 291
425 Maryland State, Industrial
Development Finance
Authority, Revenue,
(American Center for
Physics Project) Series
1992, (GTY-AGMT),
6.375% 01/01/12......... NR BBB 430
500 Maryland State, Stadium
Authority, Lease
Revenue, (Ocean City
Convention Center
Project) Series 1995,
5.375% 12/15/13......... Aa2 AA 505
1,000 Maryland State, State and
Local Facilities Loan
GO, Series 1999-2,
5.000% 07/15/07......... Aaa AAA 1,023
1,000 Maryland State, State and
Local Facilities Loan
GO, Series 2000,
5.750% 08/01/11......... Aaa AAA 1,073
760 Maryland State,
Transportation
Authority, Revenue,
(Transportation
Facilities Project)
Series 1978,
6.800% 07/01/16......... Aaa AAA 868
300 Maryland State,
Transportation
Authority, Revenue,
(Transportation
Facilities Project)
Series 1992,
5.750% 07/01/15......... A1 A+ 303
1,500 Montgomery County,
Maryland, Consolidated
Public Improvement GO,
Series 1992A,
5.800% 07/01/07......... Aaa AAA 1,603
935 Northeast Maryland, Solid
Waste Disposal
Authority, Revenue,
(Ogden Martin
Systems - Montgomery
County Residential
Receivables Project)
Series 1993A, AMT,
6.300% 07/01/16......... A2 NR 959
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND -- (CONTINUED)
$1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 1999, (FSA
Insured),
5.125% 10/01/16......... Aaa AAA $ 979
1,000 Prince Georges County,
Maryland, Consolidated
Public Improvement GO,
Series 2000,
5.250% 10/01/18......... Aa3 AA 978
500 Prince Georges County,
Maryland, PCR Refunding,
(Potomac Electric Power
Project) Series 1995,
5.750% 03/15/10......... A1 A 531
500 Prince Georges County,
Maryland, Solid Waste
Management Systems
Authority, Revenue
Refunding, Series 1993,
(FSA Insured),
5.200% 06/15/06......... Aaa AAA 511
500 Prince Georges County,
Maryland, Stormwater
Management, GO, Series
1993,
5.500% 03/15/13......... Aa3 AA 507
2,500 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1996A,
5.600% 04/01/13......... Aa3 AA+ 2,570
1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 1997A,
5.125% 04/01/13......... Aa3 AA+ 999
1,000 University of Maryland,
Systems Auxiliary
Facilities and Tuition
Revenue, Series 2000A,
5.250% 10/01/11......... Aa3 AA+ 1,025
1,290 Wicomico County, Maryland,
Public Improvement GO,
Series 1997, (MBIA
Insured),
4.800% 12/01/10......... Aaa AAA 1,285
-------
31,863
-------
DISTRICT OF COLUMBIA -- 1.1%
350 Washington, District of
Columbia, Metropolitan
Area Transportation
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
6.000% 07/01/10......... Aaa AAA 378
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE> 88
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
GUAM -- 1.6%
$ 600 Guam, Government GO,
Series 1993A,
5.200% 11/15/08......... NR BBB- $ 591
-------
MISSISSIPPI -- 1.4%
500 Warren County,
Mississippi,
Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A,
6.700% 08/01/18......... Baa1 BBB+ 518
-------
PUERTO RICO -- 2.4%
500 Puerto Rico, Electric
Power Authority, Power
Revenue Refunding,
Series 1995Y, (MBIA
Insured),
6.500% 07/01/06......... Aaa AAA 553
320 Puerto Rico, Housing Bank
and Finance Agency,
Single-Family Mortgage
Revenue, (Affordable
Housing Mortgage -
Portfolio I) Series
1995, AMT, (GNMA/FNMA/
FHLMC COLL),
6.100% 10/01/15......... Aaa AAA 325
-------
878
-------
TEXAS -- 2.5%
1,000 Houston, Texas,
Independent School
District, GO Refunding,
Series 1999A, (PSFG
Insured),
5.000% 02/15/24......... Aaa AAA 899
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $34,415).......................... 35,127
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 1.6%
(Cost $570)
570 Nations Municipal Reserves#............ $ 570
-------
TOTAL INVESTMENTS
(Cost $34,985*)............... 99.2% 35,697
-------
OTHER ASSETS AND LIABILITIES
(NET)......................... 0.8%
Receivable for investment securities
sold................................. $ 1,671
Receivable for Fund shares sold........ 91
Dividends receivable................... 70
Interest receivable.................... 507
Payable for Fund shares redeemed....... 1
Investment advisory fee payable........ (2)
Administration fee payable............. (6)
Shareholder servicing and distribution
fees payable......................... (14)
Distributions payable.................. (126)
Payable for investment securities
purchased............................ (1,833)
Accrued Trustees'/Directors' fees and
expenses............................. (22)
Accrued expenses and other
liabilities.......................... (66)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 271
-------
NET ASSETS...................... 100.0% $35,968
=======
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 13
Accumulated net realized loss on
investments sold..................... (724)
Net unrealized appreciation of
investments.......................... 712
Paid-in capital........................ 35,967
-------
NET ASSETS............................. $35,968
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 89
NATIONS FUNDS
Nations Maryland Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($17,772,392 / 1,837,748 shares
outstanding)......................... $9.67
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($1,991,762 / 205,955
shares outstanding).................. $9.67
=====
Maximum sales charge................... 4.75%
Maximum offering price per share....... $10.15
INVESTOR B SHARES:
Net asset value and offering price per
share** ($15,983,540 / 1,652,755
shares outstanding).................. $9.67
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($220,503 / 22,808 shares
outstanding)......................... $9.67
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $712 on
investment securities was comprised of gross appreciation of $867 and gross
depreciation of $155 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$34,985.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Maryland Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
General Obligations 39.43%
Education Revenue 23.81%
Housing Revenue 17.74%
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 90
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.8%
NORTH CAROLINA -- 95.5%
$1,000 Brunswick County, North
Carolina, Certificate
of Participation,
Series 2000,
5.500% 06/01/20........ Aaa AAA $ 986
1,000 Buncombe County, North
Carolina, GO Refunding,
Series 1993,
5.000% 03/01/03........ Aa2 AA 1,013
1,250 Buncombe County, North
Carolina, Metropolitan
Sewer District, Revenue
Refunding, Series
1991A, Prerefunded
07/01/01 @ 102,
6.750% 07/01/09........ Aaa NR 1,296
5 Buncombe County, North
Carolina, Metropolitan
Sewer District, Sewer
System Revenue,
Unrefunded Balance,
Series 1992B,
6.750% 07/01/16........ A1 NR 5
1,200 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
4.750% 07/01/05........ Aaa AAA 1,199
1,275 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
4.850% 07/01/06........ Aaa AAA 1,277
1,260 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
5.000% 07/01/07........ Aaa AAA 1,266
1,000 Charlotte, North
Carolina, Airport
Revenue, Series 1999B,
AMT, (MBIA Insured),
6.000% 07/01/24........ Aaa AAA 1,021
1,000 Charlotte, North
Carolina, GO Refunding,
Series 1993,
4.500% 02/01/03........ Aaa AAA 1,002
1,240 Charlotte, North
Carolina, Health Care
Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project)
Series 1992,
6.375% 01/01/09........ Aa3 AA 1,288
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$ 425 Charlotte, North
Carolina, Health Care
Systems Revenue,
Unrefunded Balance,
(Mecklenburg Hospital
Authority Project)
Series 1992,
6.250% 01/01/20........ Aa3 AA $ 432
1,000 Charlotte, North
Carolina, Public
Improvement GO, Series
1990A, Prerefunded
10/01/00 @ 102,
6.900% 10/01/05........ Aaa AAA 1,020
1,800 Charlotte, North
Carolina, Public
Improvement GO, Series
1991, Prerefunded
02/01/01 @ 102,
6.500% 02/01/07........ Aaa AAA 1,848
1,000 Charlotte, North
Carolina, Water and
Sewer GO, Series 1994,
Prerefunded 02/01/04 @
102,
5.800% 02/01/16........ Aaa AAA 1,056
1,670 Charlotte, North
Carolina, Water and
Sewer GO, Series 1996,
5.500% 05/01/06........ Aaa AAA 1,741
1,855 Charlotte, North
Carolina, Water and
Sewer GO, Series 1998,
4.750% 02/01/12........ Aaa AAA 1,809
2,545 Charlotte, North
Carolina, Water and
Sewer Systems Revenue,
Series 1999,
5.375% 06/01/19........ Aa1 AA+ 2,502
2,000 Charlotte-Mecklenburg
Hospital Authority,
Revenue, (Carolinas
Healthcare System
Project) Series 1997A,
5.000% 01/15/17........ Aa3 AA 1,837
4,500 Charlotte-Mecklenburg
Hospital Authority,
Revenue, (Carolinas
Healthcare System
Project) Series 1997A,
5.125% 01/15/22........ Aa3 AA 4,089
760 Charlotte-Mecklenburg
Hospital Authority,
Revenue, Series 1992,
Prerefunded 01/01/02 @
102,
6.375% 01/01/09........ Aa3 AA 792
705 Charlotte-Mecklenburg
Hospital Authority,
Revenue, Series 1992,
Prerefunded 01/01/02 @
102,
6.250% 01/01/20........ Aa3 AA 734
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 91
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$2,500 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC
Insured),
5.100% 06/01/01........ Aaa AAA $ 2,513
2,500 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC
Insured),
5.100% 06/01/02........ Aaa AAA 2,528
1,000 Cleveland County, North
Carolina, GO Refunding,
Series 1993, (FGIC
Insured),
5.100% 06/01/05........ Aaa AAA 1,022
2,000 Coastal Regional Solid
Waste Management
Authority, North
Carolina, Solid Waste
Disposal System
Revenue, Series 1992,
6.300% 06/01/04........ A3 BBB+ 2,094
500 Concord, North Carolina,
GO Refunding, Series
1992,
6.200% 06/01/05........ Aa2 AA- 520
1,000 Concord, North Carolina,
Utilities System
Revenue, Series 1993,
(MBIA Insured),
5.200% 12/01/02........ Aaa AAA 1,016
1,720 Durham and Wake County,
North Carolina, Special
Apartment District, GO
Refunding, Series 1992,
5.750% 04/01/03........ Aaa AAA 1,761
2,300 Durham and Wake County,
North Carolina, Special
Apartment District, GO
Refunding, Series 1993,
5.000% 04/01/03........ Aaa AAA 2,332
1,500 Durham County, North
Carolina, GO Refunding,
Series 1992,
5.200% 03/01/07........ Aaa AAA 1,539
2,000 Durham County, North
Carolina, GO, Series
1992,
5.750% 02/01/06........ Aaa AAA 2,068
1,150 Fayetteville, North
Carolina, Public Works
Commission, Revenue
Refunding, Series 1997,
(FSA Insured),
5.250% 03/01/07........ Aaa AAA 1,182
2,000 Forsyth County, North
Carolina, GO Refunding,
Series 1993A,
4.750% 03/01/06........ Aaa AAA 2,016
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,000 Greensboro, North
Carolina, Combined
Enterprise Systems
Revenue, Series 1998A,
5.000% 06/01/18........ A1 AA- $ 933
2,000 Greenville, North
Carolina, Combined
Enterprise Revenue,
Series 1994,
6.000% 09/01/10........ A2 A+ 2,101
3,000 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Revenue Refunding,
(Champion International
Corporation Project)
Series 1999,
6.400% 11/01/24........ Baa1 NR 3,033
1,000 Haywood County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Solid Waste Disposal
Revenue, (Champion
International
Corporation Project)
Series 1993, AMT,
5.500% 10/01/18........ Baa1 BBB+ 924
1,000 Henderson County, North
Carolina, School and
Community College GO,
Series 1991,
6.500% 06/01/05........ A1 A+ 1,033
500 Henderson County, North
Carolina, School and
Community College GO,
Series 1991,
6.500% 06/01/08........ A1 A+ 517
1,095 Iredell County, North
Carolina, GO, Series
1997,
4.750% 02/01/16........ Aa3 A+ 1,000
1,955 Iredell County, North
Carolina, Public
Facilities Corporate
Installment Payment
Revenue, (School
Projects) Series 2000,
(AMBAC Insured),
5.500% 06/01/09........ Aaa NR 2,041
2,180 Iredell County, North
Carolina, Public
Facilities Corporate
Installment Revenue,
(School Projects)
Series 2000, (AMBAC
Insured),
5.125% 06/01/18........ Aaa NR 2,058
1,305 Johnston County, North
Carolina, GO, Series
2000, (FGIC Insured),
5.500% 03/01/12........ Aaa AAA 1,354
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 92
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$2,700 Johnston County, North
Carolina, GO, Series
2000, (FGIC Insured),
5.500% 03/01/16........ Aaa AAA $ 2,734
1,160 Lee County, North
Carolina, GO, Series
1992,
6.000% 02/01/06........ A1 A+ 1,202
750 Lower Cape Fear, North
Carolina, Water and
Sewer Authority,
Revenue, Series 1993,
AMT,
5.200% 03/01/04........ A2 BBB 761
1,000 Mecklenburg County, North
Carolina, GO, Series
1991, Prerefunded
04/01/01 @ 102,
6.200% 04/01/06........ Aaa AAA 1,029
1,000 Mecklenburg County, North
Carolina, Industrial
Facilities and
Pollution Control
Financing Authority,
Revenue Refunding,
(Fluor Corporation
Project) Series 1993,
5.250% 12/01/09........ NR A 1,008
1,195 Morganton, North
Carolina, Water and
Sewer GO, Series 1995,
(FGIC Insured),
5.700% 06/01/11........ Aaa AAA 1,250
2,220 New Hanover County, North
Carolina, GO, Series
1995,
5.500% 03/01/10........ Aa2 AA- 2,314
1,725 New Hanover County, North
Carolina, GO, Series
2000,
5.300% 11/01/02........ Aa2 AA- 1,756
2,000 North Carolina State, GO,
Series 1992A,
6.100% 03/01/01........ Aaa AAA 2,015
4,000 North Carolina State, GO,
Series 1997A,
5.100% 03/01/06........ Aaa AAA 4,099
7,550 North Carolina State, GO,
Series 1999,
4.500% 04/01/02........ Aaa AAA 7,565
2,165 North Carolina, Eastern
Municipal Power
Authority, Revenue,
Series 1986A,
5.000% 01/01/17........ Aaa BBB 2,060
1,000 North Carolina,
Educational Facilities
Finance Agency,
Revenue, (Davidson
College Project) Series
1992,
5.100% 12/01/00........ NR AA 1,001
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,000 North Carolina,
Educational Facilities
Finance Agency,
Revenue, (Duke
University Project)
Series 1991C,
6.625% 10/01/08........ Aa1 AA+ $ 1,039
1,750 North Carolina, Housing
Finance Agency, (Home
Ownership Project)
Series 2000A-8, AMT,
5.950% 07/01/10........ Aa2 AA 1,837
1,210 North Carolina, Housing
Finance Agency, (Home
Ownership Project)
Series 2000A-8, AMT,
6.050% 07/01/12........ Aa2 AA 1,261
1,950 North Carolina, Housing
Finance Agency, Multi-
Family Housing Revenue
Refunding, Series
1992B, (FHA COLL),
6.900% 07/01/24........ Aa2 NR 2,031
1,000 North Carolina, Housing
Finance Agency,
Revenue, (Home
Ownership Project)
Series 1999A-6, AMT,
6.000% 01/01/16........ Aa2 AA 1,021
2,000 North Carolina, Housing
Finance Agency,
Revenue, Series
1999A-3, AMT,
5.150% 01/01/19........ Aa2 AA 1,851
4,025 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
(Home Ownership
Project) Series
1998A-1, AMT,
5.350% 01/01/17........ Aa2 AA 3,904
610 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1991R, (FHA
COLL),
6.350% 03/01/03........ Aa2 AA 623
610 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1991R, (FHA
COLL),
6.350% 09/01/03........ Aa2 AA 625
875 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1994Y,
6.300% 09/01/15........ Aa AA 895
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 93
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$2,500 North Carolina, Housing
Finance Agency, Student
Housing Revenue,
(Appalachian Student
Housing Project) Series
2000A, (First Union
National Bank LOC),
4.750% 07/01/31........ Aa3 $ 2,497
3,000 North Carolina, Housing
Financing Agency,
Series 1999A-5, AMT,
5.550% 01/01/19........ Aa2 AA 2,919
2,605 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding, (Novant
Health, Inc. Project)
Series 1998A, (MBIA
Insured),
5.000% 10/01/08........ Aaa AAA 2,643
2,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding,
(Presbyterian Health
Care Services Project)
Series 1993,
5.250% 10/01/04........ A1 AA- 2,042
1,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding,
(Presbyterian Health
Care Services Project)
Series 1993,
5.300% 10/01/05........ A1 AA- 1,025
3,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue
Refunding,
(Presbyterian Health
Care Services Project)
Series 1993,
5.500% 10/01/14........ A1 AA- 3,006
2,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Carolina
Medicorp Inc. Project)
Series 1996,
5.100% 05/01/07........ A1 AA- 2,026
2,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Duke
University Hospital
Project) Series 1996C,
5.250% 06/01/17........ Aa3 AA 1,906
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$2,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Gaston
Memorial Hospital
Project) Series 1995,
(AMBAC-TCRS Insured),
5.000% 02/15/05........ Aaa AAA $ 2,026
1,795 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Halifax
Regional Medical
Center, Inc. Project)
Series 1998,
4.600% 08/15/07........ Baa1 NR 1,659
1,500 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Moore Regal
Hospital Project)
Series 1993,
5.200% 10/01/13........ Aa3 AA- 1,479
1,930 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Rex Hospital,
Inc. Project) Series
1993,
5.400% 06/01/02........ A1 A+ 1,950
1,620 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Rex Hospital,
Inc. Project) Series
1993, Prerefunded
06/01/03 @ 102,
5.600% 06/01/04........ Aaa A+ 1,692
3,000 North Carolina, Medical
Care Commission, Health
Care Facilities
Revenue, (Rex Hospital,
Inc. Project) Series
1993, Prerefunded
06/01/03 @ 102,
6.250% 06/01/17........ Aaa A+ 3,182
1,000 North Carolina, Medical
Care Commission,
Hospital Revenue
Refunding, (Stanley
Memorial Hospital
Project) Series 1996,
(AMBAC Insured),
5.250% 10/01/06........ Aaa AAA 1,028
1,715 North Carolina, Medical
Care Community Health
Care Facilities
Revenue, (Carolina
Medicorp Project)
Series 1996,
5.125% 05/01/08........ A1 AA- 1,734
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 94
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding,
(Catawba Electric
Project) Series 1992,
(FGIC Insured),
5.500% 01/01/01........ Aaa AAA $ 1,003
2,000 North Carolina, Municipal
Power Agency Number 1,
Revenue, Series 1992,
(MBIA-IBC Insured),
7.250% 01/01/07........ Aaa AAA 2,256
1,000 North Carolina, State
Education Assistance
Authority, Revenue,
Series 1995A, AMT, (GTD
STD LNS),
5.300% 07/01/03........ A NR 1,012
1,625 Orange County, North
Carolina, GO, Series
1994, 5.500%
02/01/12............... Aa1 AA+ 1,676
4,645 Orange County, North
Carolina, GO, Series
2000,
5.300% 04/01/18........ Aa1 AA+ 4,569
1,240 Pitt County, North
Carolina, Revenue
Refunding, (Pitt County
Memorial Hospital
Project) Series 1995,
5.375% 12/01/10........ Aaa NR 1,280
2,800 Pitt County, North
Carolina, Revenue,
(Pitt County Memorial
Hospital Project)
Series 1991B, (MBIA
Insured),
6.750% 12/01/14........ Aaa AAA 2,928
1,000 Raleigh, North Carolina,
Combined Enterprise
System Revenue, Series
1996,
5.250% 03/01/07........ Aa1 AA+ 1,031
1,910 Raleigh, North Carolina,
GO, Series 1996,
5.300% 06/01/16........ Aaa AAA 1,901
1,000 Randolph County, North
Carolina, Certificates
of Participation,
Series 2000, (FSA
Insured),
5.200% 06/01/12........ Aaa AAA 1,005
1,000 Randolph County, North
Carolina, Certificates
of Participation,
Series 2000, (FSA
Insured),
5.300% 06/01/13........ Aaa AAA 1,005
1,595 Randolph County, North
Carolina, Certificates
of Participation,
Series 2000, (FSA
Insured),
5.500% 06/01/14........ Aaa AAA 1,616
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$2,000 Randolph County, North
Carolina, GO, Series
1992, Prerefunded
05/01/02 @ 102,
6.250% 05/01/08........ Aa3 AA- $ 2,093
1,000 Robeson County, North
Carolina, Industrial
Facilities, PCR
Refunding, (Campbell
Soup Company Project)
Series 1991,
6.400% 12/01/06........ NR AA- 1,089
750 Rutherford County, North
Carolina, GO, Series
1991, (MBIA Insured),
6.400% 06/01/01........ Aaa AAA 760
1,000 Union County, North
Carolina, School
District, GO, Series
1991, Prerefunded
04/01/01 @ 101,
6.500% 04/01/03........ A1 AA- 1,020
500 Union County, North
Carolina, School
District, GO, Series
1992,
5.800% 03/01/05........ A1 AA- 516
1,690 University of North
Carolina, Chapel Hill,
Hospital Revenue
Refunding, Series 1999,
(AMBAC Insured),
5.250% 02/15/12........ Aaa AAA 1,699
1,000 University of North
Carolina, Chapel Hill,
University Revenue
Refunding, Series 1992,
5.400% 02/15/01........ Aa3 AA 1,004
1,000 University of North
Carolina, Chapel Hill,
University Revenue
Refunding, Series 1992,
5.500% 02/15/02........ Aa3 AA 1,013
1,000 University of North
Carolina, Charlotte,
Revenue Refunding,
(Housing and Dining
Systems Project) Series
1993M, (MBIA Insured),
4.800% 01/01/04........ Aaa AAA 1,006
3,500 University of North
Carolina, University
Utilities Systems
Revenue Refunding,
Series 1993,
5.200% 08/01/06........ Aa2 AA 3,570
1,000 University of North
Carolina, University
Utilities Systems
Revenue Refunding,
Series 1993,
5.000% 08/01/09........ Aa2 AA 1,008
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 95
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,600 University of North
Carolina, University
Utilities Systems
Revenue Refunding,
Series 1993,
5.000% 08/01/11........ Aa2 AA $ 1,603
1,000 Wake County, North
Carolina, GO Refunding,
Series 1993,
4.700% 04/01/05........ Aaa AAA 1,007
2,065 Wake County, North
Carolina, Hospital
Revenue, Series 1993,
(MBIA Insured),
5.125% 10/01/26........ Aaa AAA 1,948
1,000 Wake County, North
Carolina, Public
Improvement GO, Series
1994,
4.600% 02/01/06........ Aaa AAA 1,001
1,200 Wayne County, North
Carolina, GO Refunding,
Series 1993, (MBIA
Insured),
4.900% 04/01/05........ Aaa AAA 1,216
1,000 Wilmington, North
Carolina, Public
Improvement GO, Series
1997A, (FGIC Insured),
5.000% 04/01/11........ Aaa AAA 1,004
1,000 Wilmington, North
Carolina, Public
Improvement GO, Series
1997A, (FGIC Insured),
5.000% 04/01/13........ Aaa AAA 986
--------
185,318
--------
NEW JERSEY -- 1.1%
2,040 New Jersey, Financing
Authority, Health Care
Facilities Revenue,
(Riverwood Center Inc.
Project) Series 1991A,
(FSA Insured),
Prerefunded 07/01/01 @
102,
9.900% 07/01/21........ Aaa AAA 2,161
--------
PUERTO RICO -- 0.6%
1,000 Puerto Rico, Electric
Power Authority, Power
Revenue Refunding,
Series 1995Y, (MBIA
Insured),
7.000% 07/01/07........ Aaa AAA 1,148
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON -- 0.6%
$1,150 Washington State, Public
Power Supply Systems
Revenue Refunding,
Series 1993A, (MBIA-IBC
Insured),
5.800% 07/01/07........ Aaa AAA $ 1,212
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $185,959)........................ 189,839
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 1.1%
(Cost $2,065)
2,065 Nations Municipal Reserves#........... 2,065
--------
TOTAL INVESTMENTS
(Cost $188,024*)............. 98.9% 191,904
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 1.1%
Cash.................................. $ 1
Receivable for investment securities
sold................................ 194
Interest receivable................... 3,072
Payable for Fund shares redeemed...... (246)
Investment advisory fee payable....... (31)
Administration fee payable............ (32)
Shareholder servicing and distribution
fees payable........................ (6)
Distributions payable................. (746)
Accrued Trustees'/Directors' fees and
expenses............................ (23)
Accrued expenses and other
liabilities......................... (51)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... 2,132
--------
NET ASSETS..................... 100.0% $194,036
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 290
Accumulated net realized loss on
investments sold.................... (1,968)
Net unrealized appreciation of
investments......................... 3,880
Paid-in capital....................... 191,834
--------
NET ASSETS............................ $194,036
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 96
NATIONS FUNDS
Nations North Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($178,918,510 / 17,396,050 shares
outstanding)........................ $10.29
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($9,950,559 / 967,437
shares outstanding)................. $10.29
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.64
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,087,442 / 494,669 shares
outstanding)........................ $10.28
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($79,135 / 7,694 shares
outstanding)........................ $10.28
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $3,880 on
investment securities was comprised of gross appreciation of $4,777 and gross
depreciation of $897 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$188,024.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations North Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at September 30, 2000 (as a percentage
of net assets):
General Obligations 32.06%
Hospital Revenue 17.30%
Housing Revenue 10.12%
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 97
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.2%
NORTH CAROLINA -- 97.2%
$1,600 Charlotte, North Carolina,
GO, Series 2000,
5.500% 06/01/12......... Aaa AAA $ 1,669
525 Charlotte, North Carolina,
Health Care Systems
Revenue, Unrefunded
Balance, (Mecklenburg
Hospital Authority
Project) Series 1992,
6.250% 01/01/20......... Aa3 AA 534
1,000 Charlotte, North Carolina,
Public Improvement GO,
Series 1998A,
4.750% 02/01/12......... Aaa AAA 975
975 Charlotte-Mecklenburg
Hospital Authority,
Revenue, Series 1992,
Prerefunded 01/01/02 @
102, 6.250% 01/01/20.... Aa3 AA 1,015
1,000 Craven County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, PCR
Refunding, (Weyerhaeuser
Company Project) Series
1992,
6.350% 01/01/10......... NR A 1,025
1,000 Cumberland County, North
Carolina, GO, Series
1998, (FGIC Insured),
5.000% 03/01/17......... Aaa AAA 947
1,305 Greensboro, North
Carolina, Enterprise
Systems Revenue, Series
1998A,
5.500% 06/01/08......... A1 AA- 1,366
1,000 Greensboro, North
Carolina, Public
Improvement GO, Series
1998,
4.700% 04/01/10......... Aa1 AAA 991
1,000 Greenville, North
Carolina, Utilities
Commission Revenue,
Series 2000A, (MBIA
Insured),
5.500% 09/01/19......... Aaa AAA 998
1,000 Haywood County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Revenue
Refunding, (Champion
International
Corporation Project)
Series 1999,
6.400% 11/01/24......... Baa1 NR 1,011
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,000 Haywood County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1993, AMT,
5.500% 10/01/18......... Baa1 BBB+ $ 924
1,925 Johnston County, North
Carolina, GO, Series
2000, (FGIC Insured),
5.500% 03/01/15......... Aaa AAA 1,961
2,000 Martin County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue,
(Weyerhaeuser Company
Project) Series 1993,
AMT,
5.650% 12/01/23......... A3 A 1,824
1,000 Mecklenburg County, North
Carolina, GO Refunding,
Series 1993,
6.000% 04/01/11......... Aaa AAA 1,092
2,000 Mecklenburg County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Revenue
Refunding, (Fluor
Corporation Project)
Series 1993,
5.250% 12/01/09......... NR A 2,016
1,000 Monroe, North Carolina,
Combined Enterprise
Systems, Revenue, Series
1994, Prerefunded
03/01/04 @ 102,
6.000% 03/01/14......... A3 A 1,061
1,000 Morganton, North Carolina,
Water and Sewer GO,
Series 1995, (FGIC
Insured),
5.600% 06/01/10......... Aaa AAA 1,047
1,000 New Hanover County, North
Carolina, Industrial
Facilities and Pollution
Control Financing
Authority, Solid Waste
Disposal Revenue,
(Occidental Petroleum
Corporation Project)
Series 1994, AMT,
6.500% 08/01/14......... Baa3 BBB- 1,003
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 98
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,210 North Carolina, Housing
Finance Agency, Revenue,
(Home Ownership Project)
Series 1998A-2, AMT,
5.200% 01/01/20......... Aa2 AA $ 1,133
725 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1992U, (GNMA/
FNMA COLL),
6.700% 03/01/18......... Aa AA 745
785 North Carolina, Housing
Finance Agency, Single-
Family Housing Revenue,
Series 1994W,
6.200% 09/01/09......... Aa2 AA 802
1,130 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Gaston Memorial
Hospital Project) Series
1995, (AMBAC-TCRS
Insured),
5.250% 02/15/07......... Aaa AAA 1,159
860 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Halifax Regional
Medical Center, Inc.
Project) Series 1998,
4.600% 08/15/06......... Baa1 NR 808
1,500 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Pitt County Memorial
Hospital Project) Series
1998B,
4.750% 12/01/28......... Aa3 AA- 1,242
1,000 North Carolina, Medical
Care Commission, Health
Care Facilities Revenue,
(Rex Hospital, Inc.
Project) Series 1993,
Prerefunded 06/01/03 @
102,
6.250% 06/01/17......... Aaa A+ 1,061
1,000 North Carolina, Medical
Care Commission,
Hospital Revenue, (Pitt
County Memorial Hospital
Project) Series 1998B,
5.000% 12/01/18......... Aa3 AA- 908
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
NORTH CAROLINA --
(CONTINUED)
$1,000 North Carolina, Municipal
Power Agency Number 1,
Revenue Refunding,
(Catawba Electric
Project) Series 1992,
(FGIC Insured),
6.200% 01/01/18......... Aaa AAA $ 1,027
1,500 Onslow County, North
Carolina, Combined
Enterprise Systems,
Revenue, Series 1994,
(MBIA Insured),
5.875% 06/01/09......... Aaa AAA 1,570
1,000 Orange County, North
Carolina, GO, Series
1994,
5.500% 02/01/14......... Aa1 AA+ 1,026
1,000 Orange County, North
Carolina, GO, Series
2000,
5.300% 04/01/17......... Aa1 AA+ 987
1,000 Pitt County, North
Carolina, Hospital
Revenue, (Pitt County
Memorial Hospital
Project) Series 1995,
5.250% 12/01/21......... Aaa NR 960
1,000 Randolph County, North
Carolina, Certificate of
Participation, Series
2000, (FSA Insured),
5.500% 06/01/15(a)...... Aaa AAA 1,009
1,000 Randolph County, North
Carolina, Certificate of
Participation, Series
2000, (FSA Insured),
5.750% 06/01/22(a)...... Aaa AAA 1,009
1,000 Wilmington, North
Carolina, Water
Authority, GO, Series
1994,
5.700% 06/01/15......... Aa3 AA- 1,031
-------
37,936
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $36,945).......................... 37,936
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 99
NATIONS FUNDS
Nations North Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.0%
(Cost $792)
792 Nations Municipal Reserves#............ $ 792
-------
TOTAL INVESTMENTS
(Cost $37,737*)............... 99.2% 38,728
-------
OTHER ASSETS AND LIABILITIES
(NET)......................... 0.8%
Receivable for investment securities
sold................................. $ 117
Receivable for Fund shares sold........ 15
Interest receivables................... 610
Payable for Fund shares redeemed....... (218)
Investment advisory fee payable........ (3)
Administration fee payable............. (6)
Shareholder servicing and distribution
fees payable......................... (15)
Distributions payable.................. (141)
Accrued Trustees'/Directors' fees and
expenses............................. (22)
Accrued expenses and other
liabilities.......................... (26)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 311
-------
NET ASSETS...................... 100.0% $39,039
=======
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 21
Accumulated net realized loss on
investments sold..................... (1,728)
Net unrealized appreciation on
investments.......................... 991
Paid-in capital........................ 39,755
-------
NET ASSETS............................. $39,039
=======
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<C> <S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($18,908,743 / 1,965,508 shares
outstanding)......................... $9.62
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($2,310,059 / 240,189
shares outstanding).................. $9.62
=====
Maximum sales charge................... 4.75%
Maximum offering price per share....... $10.10
INVESTOR B SHARES:
Net asset value and offering price per
share** ($17,765,456 / 1,846,793).... $9.62
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($55,172 / 5,738 shares
outstanding)......................... $9.62
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $991 on
investment securities was comprised of gross appreciation of $1,235 and
gross depreciation of $244 for federal income tax purposes. At September 30,
2000, the aggregate cost of securities for federal income tax purposes was
$37,737.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations North Carolina Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
FGIC 12.76%
Nations North Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 27.57%
Industrial Development Revenue/
Pollution Control Revenue 20.21%
Hospital Revenue 11.97%
Water Revenue 10.26%
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 100
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 102.0%
SOUTH CAROLINA -- 101.1%
$1,100 Anderson County, South
Carolina, GO Revenue
Refunding, Series
1992,
6.400% 04/01/03....... Aa3 AA- $ 1,147
1,300 Anderson County, South
Carolina, GO Revenue
Refunding, Series
1992,
6.500% 04/01/04....... Aa3 AA- 1,356
1,240 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series
1993, (FGIC Insured),
5.200% 07/01/03....... Aaa AAA 1,261
1,000 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series
1993, (FGIC Insured),
5.500% 07/01/06....... Aaa AAA 1,032
1,500 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series
1993, (FGIC Insured),
5.600% 07/01/07....... Aaa AAA 1,552
1,000 Anderson County, South
Carolina, Sewer
Authority, Revenue
Refunding, Series
1993, (FGIC Insured),
5.600% 07/01/08....... Aaa AAA 1,032
1,725 Beaufort County, South
Carolina, School
District, GO, Series
2000B, (SCSDE),
5.500% 03/01/16....... Aa1 AA+ 1,738
1,000 Berkeley County, South
Carolina, Refunding
and Improvement
Authority, GO, Series
1993, (FGIC Insured),
5.300% 05/01/04....... Aaa AAA 1,023
1,000 Berkeley County, South
Carolina, Refunding
and Improvement
Authority, GO, Series
1993, (FGIC Insured),
5.400% 05/01/05....... Aaa AAA 1,031
1,000 Berkeley County, South
Carolina, Refunding
and Improvement
Authority, GO, Series
1993, (FGIC Insured),
5.500% 05/01/06....... Aaa AAA 1,033
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$2,500 Berkeley County, South
Carolina, School
District GO, Series
2000, (SCSDE Insured),
5.000% 04/01/21....... Aa1 AA+ $ 2,307
1,000 Camden, South Carolina,
Combined Public
Utilities Revenue
Refunding and
Improvement, Series
1997, (MBIA Insured),
5.500% 03/01/17....... Aaa AAA 999
2,370 Charleston County, South
Carolina, Hospital
Facilities Revenue,
(Care Alliance Health
Services Project)
Series 1999A, (FSA
Insured),
5.125% 08/15/15....... Aaa AAA 2,297
3,000 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Bon
Secours Health Systems
Project) Series 1993,
(FSA Insured),
5.500% 08/15/10....... Aaa AAA 3,106
1,000 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Medical
Society Health
Project) Series 1992,
(MBIA Insured),
6.000% 10/01/09....... Aaa AAA 1,035
1,000 Charleston County, South
Carolina, Public
Improvement Authority,
GO, Series 1994,
(State Aid
Withholding),
5.500% 06/01/14....... Aa3 AA 1,040
1,000 Charleston County, South
Carolina, Revenue,
(Alliance Health
Services Project)
Series 1999A, (FSA
Insured),
5.000% 08/15/12....... Aaa AAA 979
1,040 Charleston County, South
Carolina, Solid Waste
User Fee Revenue,
Series 1994, (MBIA
Insured),
5.800% 01/01/06....... Aaa AAA 1,091
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 101
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$5,105 Charleston, South
Carolina, Waterworks
and Sewer Capital
Improvement Revenue
Refunding, Series
1998,
5.250% 01/01/08....... A1 AA- $ 5,247
9,500 Charleston, South
Carolina, Waterworks
and Sewer Capital
Improvement Revenue
Refunding, Series
1998, (FGIC Insured),
4.500% 01/01/24....... Aaa AAA 7,838
1,000 Charleston, South
Carolina, Waterworks
and Sewer Revenue
Refunding, Series
1991,
5.750% 01/01/04....... A1 AA- 1,032
1,645 Cherokee County, South
Carolina, School
District Number 1, GO,
Series 1997, (SCSDE),
5.000% 03/01/02....... Aa1 NR 1,658
1,000 Columbia, South
Carolina, Parking
Facilities Revenue
Refunding, Series
1994, (AMBAC Insured),
5.750% 12/01/09....... Aaa AAA 1,044
5,500 Columbia, South
Carolina, Waterworks
and Sewer Systems
Revenue Refunding,
Series 1993,
5.500% 02/01/09....... Aa3 AA 5,742
2,000 Darlington County, South
Carolina, PCR,
(Carolina Power and
Light - Annual Tender
Project) Series 1983,
6.600% 11/01/10....... A2 A1 2,119
1,000 Darlington County, South
Carolina, PCR,
(Carolina Power and
Light - Annual Tender
Project) Series 1983,
(MBIA-IBC Insured),
6.600% 11/01/10....... Aaa AAA 1,061
2,000 Florence County, South
Carolina, Hospital
Revenue, (McLeod
Regional Hospital
Center Project) Series
1998A, (MBIA Insured),
5.000% 11/01/18....... Aaa AAA 1,816
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,250 Florence, South
Carolina, Water and
Sewer Revenue
Refunding, Series
1993, (AMBAC Insured),
5.150% 03/01/06....... Aaa AAA $ 1,271
1,225 Georgetown County, South
Carolina,
Environmental Revenue,
(International Paper
Company Project)
Series 1997A, AMT,
5.700% 10/01/21....... Baa1 BBB+ 1,139
4,000 Georgetown County, South
Carolina, PCR
Refunding,
(International Paper
Company Project)
Series 1999A,
5.125% 02/01/12....... Baa1 BBB+ 3,761
2,480 Georgetown County, South
Carolina, School
District, GO, Series
2000, (SCSDE),
5.500% 03/01/09....... Aa1 AA+ 2,603
1,000 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.000% 06/01/02....... Aaa AAA 1,023
1,950 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.300% 06/01/05....... Aaa AAA 2,037
1,000 Grand Strand, South
Carolina, Water and
Sewer Authority,
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.400% 06/01/07....... Aaa AAA 1,046
1,000 Greenville County, South
Carolina, Industrial
Revenue Refunding,
(Monsanto Company
Project) Series 1990,
7.500% 10/01/07....... A1 NR 1,002
1,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1993C,
5.300% 05/01/04....... Aa3 AA 1,016
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 102
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$4,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1993C,
5.400% 05/01/05....... Aa3 AA $ 4,086
2,400 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1993C,
5.500% 05/01/11....... Aa3 AA 2,421
1,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1996A, (GTY-AGMT),
5.400% 05/01/07....... Aa3 AA 1,022
4,000 Greenville, South
Carolina, Hospital
Facilities Revenue
Refunding, Series
1996B, (GTY-AGMT),
5.250% 05/01/17....... Aa3 AA 3,755
2,000 Greenville, South
Carolina, Water
Utility Improvement
Waterworks Revenue,
Series 1997,
6.000% 02/01/06....... Aa1 AA 2,125
1,000 Greenville, South
Carolina, Water
Utility Improvement
Waterworks Revenue,
Series 1997,
6.000% 02/01/08....... Aa1 AA 1,075
1,885 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement, Series
1993, (AMBAC Insured),
5.500% 12/01/06....... Aaa AAA 1,951
2,000 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement, Series
1993, (AMBAC Insured),
5.500% 12/01/07....... Aaa AAA 2,065
1,060 Greenwood, South
Carolina, Combined
Public Utilities,
Revenue Refunding and
Improvement, Series
1993, (AMBAC Insured),
5.500% 12/01/08....... Aaa AAA 1,092
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,200 Horry County, South
Carolina, Hospital
Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998,
(AMBAC Insured),
4.875% 07/01/11....... Aaa AAA $ 1,165
1,275 Horry County, South
Carolina, School
District, GO, Series
1995B, (MBIA Insured,
SCSDE), 5.700%
03/01/16.............. Aaa AAA 1,290
1,725 Lancaster County, South
Carolina, School
District, GO, Series
1991, (MBIA Insured),
Prerefunded 07/01/02 @
102,
6.500% 07/01/07....... Aaa AAA 1,816
1,180 Lexington County, South
Carolina, Health
Service District,
Revenue Refunding,
(Health Service
District and Lexmed,
Inc. Project) Series
1997, (FSA Insured),
5.500% 11/01/06....... Aaa AAA 1,229
5,000 Lexington County, South
Carolina, Health
Services District,
Revenue Refunding,
Series 1997, (FSA
Insured),
5.125% 11/01/21....... Aaa AAA 4,564
2,000 Lexington, South
Carolina, Water and
Sewer Authority,
Revenue, Series 1997,
5.450% 04/01/19....... NR AA 1,930
2,000 Medical University of
South Carolina,
Hospital Facilities,
Revenue Refunding,
Series 1990A, 7.000%
07/01/01.............. Baa2 A 2,034
4,500 Medical University of
South Carolina,
Hospital Facilities,
Revenue Refunding,
Series 1990A, 7.000%
07/01/02.............. Baa2 A 4,596
3,725 Medical University of
South Carolina,
Hospital Facilities,
Revenue Refunding,
Series 1990A, 7.200%
07/01/05.............. Baa2 A 3,806
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 103
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$2,500 Myrtle Beach, South
Carolina, Water and
Sewer Improvement
Revenue Refunding,
Series 1993, (MBIA
Insured),
5.000% 03/01/03....... Aaa AAA $ 2,527
1,750 North Charleston, South
Carolina, GO
Refunding, Series
1993,
5.600% 08/01/07....... A2 AA- 1,811
1,725 North Charleston, South
Carolina, GO
Refunding, Series
1993,
5.750% 08/01/08....... A2 AA- 1,792
1,000 North Charleston, South
Carolina, Sewer
District, Revenue
Refunding, Series
1992A, (MBIA Insured),
6.000% 07/01/02....... Aaa AAA 1,025
1,850 Piedmont Municipal Power
Agency, South
Carolina, Electric
Revenue Refunding,
Series 1991, (FGIC
Insured),
6.850% 01/01/07....... Aaa AAA 1,896
1,000 Piedmont Municipal Power
Agency, South
Carolina, Electric
Revenue Refunding,
Series 1991A, (FGIC
Insured),
6.250% 01/01/13....... Aaa AAA 1,037
1,600 Piedmont Municipal Power
Agency, South
Carolina, Electric
Revenue Refunding,
Series 1992, (MBIA
Insured),
6.000% 01/01/05....... Aaa AAA 1,685
4,000 Piedmont Municipal Power
Agency, South
Carolina, Electric
Revenue Refunding,
Series 1996B, (MBIA
Insured),
5.250% 01/01/09....... Aaa AAA 4,089
1,715 Piedmont Municipal Power
Agency, South
Carolina, Electric
Revenue, Unrefunded
Balance, Series 1991A,
(FGIC Insured),
6.125% 01/01/03....... Aaa AAA 1,771
2,040 Richland County, South
Carolina, GO
Refunding, Series
1991,
5.900% 12/01/01....... Aa2 AA 2,075
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$2,020 Richland County, South
Carolina, GO
Refunding, Series
1994B, (State Aid
Withholding),
4.750% 03/01/03....... Aa2 AA $ 2,031
2,120 Richland County, South
Carolina, GO
Refunding, Series
1994B, (State Aid
Withholding),
4.850% 03/01/04....... Aa2 AA 2,137
2,250 Richland County, South
Carolina, GO
Refunding, Series
1994B, (State Aid
Withholding),
4.950% 03/01/05....... Aa2 AA 2,278
1,000 Richland County, South
Carolina, PCR
Refunding, (Union Camp
Corporation Project)
Series 1992B,
6.625% 05/01/22....... A3 BBB+ 1,013
4,000 Richland County, South
Carolina, PCR
Refunding, (Union Camp
Corporation Project)
Series 1992C,
5.875% 11/01/02....... Baa1 BBB+ 4,081
5,000 Richland County, South
Carolina, School
District Number 1, GO,
Series 1996, (SCSDE),
4.625% 03/01/22....... Aa1 AA+ 4,257
1,330 Richland County, South
Carolina, School
District Number 2, GO
Refunding, Series
1994A, (MBIA Insured,
SCSDE), 4.800%
03/01/03.............. Aaa AAA 1,338
1,590 Richland County, South
Carolina, School
District Number 2, GO
Refunding, Series
1994A, (MBIA Insured,
SCSDE), 4.900%
03/01/04.............. Aaa AAA 1,605
1,655 Richland County, South
Carolina, School
District Number 2, GO
Refunding, Series
1994A, (MBIA Insured,
SCSDE), 5.000%
03/01/05.............. Aaa AAA 1,677
1,395 Richland County, South
Carolina, Solid Waste
Disposal Facilities
Revenue, (Union Camp
Corporation Project)
Series 1992A, AMT,
6.750% 05/01/22....... Baa1 BBB+ 1,410
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 104
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,000 Rock Hill, South
Carolina, Combined
Public Utility Systems
Revenue, Series 1991,
(FGIC Insured),
6.200% 01/01/03....... Aaa AAA $ 1,024
2,000 Rock Hill, South
Carolina, School
District Number 3, GO
Refunding, Series
1992B, (FGIC Insured,
SCSDE),
5.900% 02/01/02....... Aaa AAA 2,036
500 South Carolina State,
Capital Improvement GO
Refunding, Series
1993,
4.400% 04/01/04....... Aaa AAA 498
6,135 South Carolina State,
Capital Improvement
GO, Series 1996A,
3.500% 07/01/06....... Aaa AAA 5,679
1,750 South Carolina State,
GO, Series 1991W,
6.000% 05/01/01....... Aaa AAA 1,767
1,245 South Carolina State,
GO, Series 2000A,
4.800% 03/01/09....... Aaa AAA 1,250
5,000 South Carolina State,
Housing Finance and
Development Authority,
Multi-Family Housing
Revenue, (United
Dominion Realty Trust
Project) Series 1994,
AMT, Mandatory Put
05/01/04 @ 100,
6.500% 05/01/24....... NR BBB 5,104
2,320 South Carolina State,
Housing Finance and
Development Authority,
Rental Housing
Revenue, (Windsor
Shores Project) Series
1993B, (FHA Insured),
5.600% 07/01/16....... NR AA 2,258
2,375 South Carolina State,
Jobs Economic
Development Authority,
Hospital Facilities
Revenue, Series 1999,
(FSA Insured),
5.300% 02/01/14....... Aaa AAA 2,352
4,565 South Carolina State,
Port Authority,
Revenue, Series 1998,
AMT, (FSA Insured),
5.250% 07/01/13....... Aaa AAA 4,502
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,000 South Carolina State,
Public Service
Authority, Revenue
Refunding, Series
1991B,
6.600% 07/01/01....... Aaa AAA $ 1,016
1,000 South Carolina State,
Public Service
Authority, Revenue,
Series 1991B,
6.700% 07/01/02....... Aa2 AA- 1,035
4,000 South Carolina,
Educational Facilities
for Non-Profit
Institutions, Revenue,
(Furman University
Project) Series 1996A,
(MBIA Insured),
5.500% 10/01/26....... Aaa AAA 3,866
1,500 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Oconee Memorial
Hospital, Inc.
Project) Series 1995,
(CONNIE LEE Insured),
6.150% 03/01/15....... NR AAA 1,556
4,500 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project)
Series 2000A,
7.125% 12/15/15....... Baa1 BBB 4,556
6,500 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(South Carolina
Baptist Hospital
Project) Series 1993,
(AMBAC Insured),
5.465% 08/01/15....... Aaa AAA 6,383
4,595 South Carolina, State
Housing Finance and
Development Authority,
Revenue Refunding,
Series 1992A, (FNMA/
FHA COLL),
6.800% 11/15/11....... Aaa NR 4,743
3,495 South Carolina, State
Ports Authority, Ports
Revenue, Series 1991,
(AMBAC Insured),
6.750% 07/01/21....... Aaa AAA 3,623
3,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1992A 6.200%
07/01/05.............. Aa2 AA- 3,133
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 105
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1992A,
6.375% 07/01/11....... Aa2 AA- $ 1,042
1,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1993A,
5.200% 07/01/03....... Aa2 AA- 1,017
1,500 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1993A, (MBIA Insured),
5.300% 07/01/05....... Aaa AAA 1,536
2,000 South Carolina, State
Public Service
Authority, Revenue
Refunding, Series
1993C, (AMBAC
Insured),
5.100% 01/01/11....... Aaa AAA 1,992
4,000 South Carolina,
Transportation
Infrastructure
Revenue, Series 1998A,
(MBIA Insured),
5.000% 10/01/12....... Aaa AAA 3,936
1,025 Spartanburg County,
South Carolina, GO,
Series 1992,
5.800% 02/01/05....... Aa2 AA 1,071
1,005 Spartanburg County,
South Carolina, GO,
Series 1992,
5.700% 02/01/06....... Aa2 AA 1,047
1,000 Spartanburg County,
South Carolina, GO,
Series 1992,
5.700% 02/01/09....... Aa2 AA 1,036
2,850 Spartanburg, South
Carolina, Sewer
District, Sewer
Systems Revenue,
Series 1997, (MBIA
Insured), Prerefunded
06/01/07 @ 101,
5.500% 06/01/27....... Aaa AAA 2,997
3,445 Spartanburg, South
Carolina, Waterworks
and Sewer Systems
Authority, Revenue,
Unrefunded Balance,
Series 1992,
6.200% 06/01/09....... A1 AA- 3,559
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
---------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,000 West Columbia, South
Carolina, Water and
Sewer Revenue
Refunding, Series
1992, (MBIA Insured),
6.300% 10/01/07....... Aaa AAA $ 1,049
1,000 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series
1992, (AMBAC Insured),
5.800% 03/01/03....... Aaa AAA 1,026
1,000 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series
1992, (AMBAC Insured),
5.900% 03/01/04....... Aaa AAA 1,027
2,500 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series
1993, (FGIC Insured),
5.000% 03/01/02....... Aaa AAA 2,518
1,000 Western Carolina,
Regional Sewer Systems
Authority, Revenue
Refunding, Series
1993, (FGIC Insured),
5.500% 03/01/10....... Aaa AAA 1,021
4,000 York County, South
Carolina, PCR
Refunding, (Bowater
Inc. Project) Series
1991B,
6.850% 04/01/01....... Baa3 BBB 4,019
--------
237,345
--------
TEXAS -- 0.9%
2,000 Dallas-Fort Worth,
Texas, International
Airport Facilities
Improvement, Corporate
Revenue Refunding,
(American Airlines
Project) Series 2000C,
AMT,
6.150% 05/01/29....... Baa1 BBB- 2,007
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $233,866)....................... 239,352
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 106
NATIONS FUNDS
Nations South Carolina Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $597)
597 Nations Municipal Reserves#........... $ 597
--------
TOTAL INVESTMENTS
(Cost $234,463*)............. 102.3% 239,949
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ (2.3)%
Receivable for investment securities
sold................................ $ 10
Receivable for Fund shares sold....... 25
Interest receivable................... 3,706
Payable for Fund shares redeemed...... (64)
Investment advisory fee payable....... (40)
Administration fee payable............ (39)
Shareholder servicing and distribution
fees payable........................ (10)
Distributions payable................. (946)
Payable for investment securities
purchased........................... (7,828)
Accrued Trustees' / Directors' fees
and expenses........................ (24)
Accrued expenses and other
liabilities......................... (165)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... (5,375)
--------
NET ASSETS..................... 100.0% $234,574
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 212
Accumulated net realized loss on
investments sold.................... (362)
Net unrealized appreciation of
investments......................... 5,486
Paid-in capital....................... 229,238
--------
NET ASSETS............................ $234,574
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($210,575,191 / 20,347,475 shares
outstanding)........................ $10.35
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($15,582,910 / 1,505,925
shares outstanding)................. $10.35
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.70
INVESTOR B SHARES:
Net asset value and offering price per
share** ($6,985,211 / 674,963 shares
outstanding)........................ $10.35
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($1,430,899 / 138,225 shares
outstanding)........................ $10.35
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $5,486 on
investment securities was comprised of gross appreciation of $7,061 and gross
depreciation of $1,575 for federal income tax purposes. At September 30,
2000, the aggregate cost of securities for federal income tax purposes was
$234,463.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations South Carolina Intermediate Municipal Bond Fund had the following
insurance concentration greater than 10% at September 30, 2000 (as a percentage
of net assets):
MBIA 16.83%
FGIC 11.55%
Nations South Carolina Intermediate Municipal Bond Fund had the following
industry concentration greater than 10% at September 30, 2000 (as a percentage
of net assets):
Hospital 22.67%
General Obligations 21.63%
Water Revenue 20.57%
Electric Revenue 10.80%
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE> 107
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.4%
SOUTH CAROLINA -- 98.4%
$ 500 Charleston County, South
Carolina, Hospital
Facilities, Revenue
Refunding and
Improvement, (Bon
Secours Health Systems
Project) Series 1993,
(FSA Insured), 5.625%
08/15/25................ Aaa AAA $ 504
1,000 Chester County, South
Carolina, IDR,
Refunding, (Springs
Industries Inc. Project)
Series 1992, 7.350%
02/01/14................ NR BBB+ 1,032
1,500 Columbia, South Carolina,
Waterworks and Sewer
Systems Revenue
Refunding, Series 1993,
5.500% 02/01/09......... Aa3 AA 1,566
2,700 Columbia, South Carolina,
Waterworks and Sewer
Systems Revenue, Series
1991, 4.855%(+)
02/01/03................ Aa3 AA 2,417
1,750 Darlington County, South
Carolina, IDR, (Nucor
Corporation Project)
Series 1993A, AMT,
5.750% 08/01/23......... A1 AA- 1,698
2,000 Darlington County, South
Carolina, IDR, (Sonoco
Products Company
Project) Series 1995,
AMT, 6.125% 06/01/25.... A2 A 1,973
500 Dorchester County, South
Carolina, School
District Number 2, GO
Refunding, Series 1995,
(FGIC Insured, SCSDE),
4.800% 07/01/05......... Aaa AAA 503
2,000 Georgetown County, South
Carolina, PCR Refunding,
(International Paper
Company Project) Series
1999A, 5.125%
02/01/12................ Baa1 BBB+ 1,881
500 Georgetown County, South
Carolina, PCR,
(International Paper
Company Project) Series
1997B, AMT, 5.600%
12/01/21................ Baa1 BBB+ 459
2,040 Greenville, South
Carolina, Hospital
Facilities Revenue,
Series 1996B, (GTY
AGMT), 5.250%
05/01/23................ Aa3 AA 1,854
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,500 Greenville, South
Carolina, Water Utility
Improvement, Waterworks
Revenue, Series 1997,
5.500% 02/01/22......... Aa1 AA $ 1,478
710 Greer, South Carolina,
Combined Public
Utilities, Revenue
Refunding and
Improvement, Series
1997, (AMBAC Insured),
5.000% 09/01/17......... Aaa AAA 665
1,100 Horry County, South
Carolina, Hospital
Facilities Revenue,
(Conway Hospital, Inc.
Project) Series 1998,
(AMBAC Insured), 4.750%
07/01/10................ Aaa AAA 1,068
1,575 Medical University, South
Carolina, Hospital
Facilities Revenue,
Series 1999, 5.500%
07/01/09................ Baa2 A 1,611
1,000 Oconee County, South
Carolina, School
District, GO, Series
1994, (MBIA Insured),
5.100% 01/01/13......... Aaa AAA 983
1,000 Piedmont Municipal Power
Agency, South Carolina,
Electric Revenue
Refunding, Series 1996B,
(MBIA Insured),
5.250% 01/01/09......... Aaa AAA 1,022
1,000 Richland County, South
Carolina, School
District Number 1, GO,
Series 1996, (SCSDE),
4.625% 03/01/22......... Aa1 AA+ 851
2,000 South Carolina State, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
Series 1999, (FSA
Insured), 5.300%
02/01/14................ Aaa AAA 1,981
2,000 South Carolina State,
Public Service
Authority, Revenue,
Series 1999A, (MBIA
Insured), 5.625%
01/01/13................ Aaa AAA 2,056
1,000 South Carolina,
Educational Facilities
for Non-Profit
Institutions, Revenue,
(Furman University
Project) Series 1996A,
(MBIA Insured), 5.500%
10/01/26................ Aaa AAA 966
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
103
<PAGE> 108
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH CAROLINA --
(CONTINUED)
$1,000 South Carolina, Jobs
Economic Development
Authority, Hospital
Facilities Revenue,
(Palmetto Health
Alliance Project) Series
2000A, 7.125%
12/15/15................ Baa1 BBB $ 1,012
1,000 South Carolina,
Transportation
Infrastructure Revenue,
Series 1998A, (MBIA
Insured), 5.000%
10/01/12................ Aaa AAA 984
1,000 South Carolina,
Transportation
Infrastructure Revenue,
Series 1998A, (MBIA
Insured), 4.500%
10/01/17................ Aaa AAA 862
1,000 Spartanburg County, South
Carolina, Health
Services District,
Hospital Revenue
Refunding, Series 1997B,
(MBIA Insured), 5.125%
04/15/17................ Aaa AAA 937
2,250 Spartanburg, South
Carolina, Sanitary Sewer
District, Sewer System
Revenue Refunding,
Series 1999B, (MBIA
Insured), 5.000%
03/01/26................ Aaa AAA 2,029
2,000 York County, South
Carolina, Exempt
Facilities IDR, (Hoechst
Celanese Corporation
Project) Series 1994,
AMT, 5.700% 01/01/24.... Baa2 BBB 1,805
900 York County, South
Carolina, PCR Refunding,
(Bowater Inc. Project)
Series 1991B, 6.850%
04/01/01................ Baa3 BBB 904
-------
35,101
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $34,426).......................... 35,101
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.7%
(Cost $249)
249 Nations Municipal Reserves#............. $ 249
-------
TOTAL INVESTMENTS (Cost 99.1%
$34,675*)...................... 35,350
-------
OTHER ASSETS AND LIABILITIES 0.9%
(NET)..........................
Receivable for Fund shares sold......... $ 46
Interest receivable..................... 479
Payable for Fund shares redeemed........ (1)
Investment advisory fee payable......... (2)
Administration fee payable.............. (6)
Shareholder servicing and distribution
fees payable.......................... (7)
Distributions payable................... (154)
Accrued Trustees'/Directors' fees and
expenses.............................. (22)
Accrued expenses and other
liabilities........................... (27)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 306
-------
NET ASSETS....................... 100.0% $35,656
=======
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 13
Accumulated net realized loss on
investments sold...................... (580)
Net unrealized appreciation of
investments........................... 675
Paid-in capital......................... 35,548
-------
NET ASSETS.............................. $35,656
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
104
<PAGE> 109
NATIONS FUNDS
Nations South Carolina Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share
($26,151,701 / 2,645,760 shares
outstanding).......................... $9.88
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,017,551 / 102,983 shares
outstanding).......................... $9.88
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $10.37
INVESTOR B SHARES:
Net asset value and offering price per
share** ($8,444,567 / 854,331 shares
outstanding).......................... $9.88
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($42,528 / 4,303 shares
outstanding).......................... $9.88
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $675 on
investment securities was comprised of gross appreciation of $909 and gross
depreciation of $234 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was 34,675.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
+ Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations South Carolina Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
MBIA 27.59%
Nations South Carolina Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
Industrial Development Revenue/
Pollution Control Revenue 27.65%
Hospital Revenue 25.43%
Water Revenue 21.01%
Electric Revenue 10.57%
SEE NOTES TO FINANCIAL STATEMENTS.
105
<PAGE> 110
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.9%
TENNESSEE -- 94.3%
$1,000 Anderson County,
Tennessee, Health and
Educational Facilities
Board, Revenue
Refunding, (Methodist
Medical Center - Oak
Ridge Project) Series
1993,
5.400% 07/01/04......... A1 NR $ 1,010
1,700 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993,
(FSA Insured),
5.375% 10/01/04......... Aaa AAA 1,747
1,000 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993,
(FSA Insured),
5.500% 10/01/07......... Aaa AAA 1,041
1,145 Harpeth Valley, Tennessee,
Utilities District,
Revenue Refunding,
Series 1993,
5.000% 09/01/01......... A1 A 1,151
1,600 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Hospital
Facilities Improvement
Revenue Refunding,
(Baptist Health System
of East Tennessee, Inc.
Project) Series 1996,
(CONNIE LEE Insured),
5.500% 04/15/11......... Aaa AAA 1,639
500 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Hospital
Facilities Revenue,
(Sanders Alliance
Project) Series 1993A,
(MBIA Insured),
4.900% 01/01/05......... Aaa AAA 504
1,500 Knox County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(University Health
Systems Inc. Project)
Series 1999,
5.750% 04/01/19......... Baa1 NR 1,350
1,250 Knox County, Tennessee,
Public Improvement GO,
Series 1998,
4.750% 04/01/19......... Aa2 AA 1,107
500 Madison County, Tennessee,
GO, Series 1992A,
5.850% 08/01/03......... A1 NR 515
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$2,270 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General
Motors
Corporation - Saturn
Corporation Project)
Series 1994,
6.500% 09/01/24......... A2 A $ 2,335
1,800 McMinn County, Tennessee,
Industrial Development
Board, PCR Refunding,
(Bowater Inc. Project)
Series 1991,
6.850% 04/01/01......... Baa3 BBB 1,819
1,000 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.400% 12/01/22......... Baa3 BBB 1,033
1,000 Memphis, Tennessee,
Electric System Revenue
Refunding, Series 1992,
6.000% 01/01/05......... Aa3 AA 1,050
2,100 Memphis, Tennessee, GO,
Series 2000,
5.000% 04/01/17......... Aa2 AA 1,975
1,500 Memphis, Tennessee, Water
Division, Revenue
Refunding, Series 1992,
5.900% 01/01/04......... Aa1 AA 1,558
1,000 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1992, AMT,
6.750% 09/01/12......... Baa2 BBB 1,041
1,600 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Electric Revenue, Series
1998B,
5.500% 05/15/13......... Aa3 AA 1,651
750 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1993,
5.250% 05/15/07......... Aa2 AA 772
505 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.000% 12/01/08......... Aaa AAA 544
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
106
<PAGE> 111
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 295 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Health and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.000% 12/01/09......... Aaa AAA $ 318
600 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Multi-Family Housing
Revenue, (Enchantment,
Inc. - Welch Bend
Apartments Project)
Series 1996A, (FNMA
COLL), Mandatory Put
01/01/07 @ 100,
5.500% 01/01/27......... NR AAA 607
1,645 Rutherford County,
Tennessee, Public
Improvement GO, Series
1996,
6.000% 04/01/06......... Aa2 AA 1,748
1,280 Shelby County, Tennessee,
GO Refunding, Series
1996B,
5.200% 12/01/09......... Aa3 AA+ 1,307
1,000 Shelby County, Tennessee,
GO Refunding, Series
1999B,
5.250% 04/01/11......... Aa3 AA+ 1,023
260 Shelby County, Tennessee,
GO, Unrefunded Balance,
Series 1992B,
6.000% 03/01/08......... Aa3 AA+ 266
520 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(Lebonheur Childrens
Medical Center Project)
Series 1993D, (MBIA
Insured),
5.300% 08/15/04......... Aaa AAA 533
500 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue,
(Methodist Health
Systems, Inc. Project)
Series 1995, (MBIA
Insured),
6.250% 08/01/09......... Aaa AAA 547
2,000 Shelby County, Tennessee,
Health Educational and
Housing Facilities
Board, Revenue, (St.
Jude's Childrens
Research Project) Series
1999,
5.375% 07/01/24......... NR AA 1,851
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$ 400 Shelby County, Tennessee,
Public Improvement GO
Refunding, Series 1999A,
4.750% 05/01/21......... Aa3 AA+ $ 349
500 Shelby County, Tennessee,
Public Improvement GO,
Series 1996A,
5.625% 06/01/06......... Aa3 AA+ 524
1,000 Sumner County, Tennessee,
Resource Authority,
Revenue, Series 1993,
(AMBAC Insured),
5.125% 08/01/03......... Aaa AAA 1,014
1,500 Tennergy Corporation,
Tennessee, Gas Revenue,
Series 1999, (MBIA
Insured),
5.000% 06/01/07......... Aaa AAA 1,424
2,500 Tennessee Housing
Development Agency,
Homeownership Revenue,
Series 1997-3A, AMT,
5.530%(+) 01/01/08...... Aa2 AA 1,691
990 Tennessee Housing
Development Agency,
Mortgage Finance
Revenue, Series 1993A,
AMT,
5.100% 07/01/01......... A1 AA 994
200 Tennessee Housing
Development Agency,
Mortgage Finance
Revenue, Series 1994A,
AMT,
6.300% 01/01/08......... A1 AA 210
1,000 Tennessee State, GO,
Series 1994A,
5.200% 03/01/05......... Aa1 AA+ 1,032
1,000 Tennessee State, GO,
Series 1995A,
7.000% 03/01/03......... Aa1 AA+ 1,055
500 Tennessee State, School
Board Authority, Higher
Education Facilities
Revenue, Series 1992A,
6.000% 05/01/05......... Aa2 AA+ 518
300 Tennessee, Housing
Development Agency,
Mortgage Finance
Revenue, Series 1994B,
AMT,
6.550% 07/01/19......... A1 AA 304
1,120 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1997,
AMT,
4.788%(+) 07/01/03...... Aa2 AA 973
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
107
<PAGE> 112
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$1,215 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1997,
AMT,
4.530%(+) 07/01/04...... Aa2 AA $ 1,002
785 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1998,
AMT,
4.750% 07/01/08......... Aa2 AA 770
1,135 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1998,
AMT,
4.850% 07/01/09......... Aa2 AA 1,115
-------
45,017
-------
MISSOURI -- 2.5%
1,275 West Plains, Missouri,
Industrial Development
Authority, Hospital
Revenue, (Ozarks Medical
Center Project) Series
1997,
5.250% 11/15/07......... NR BB+ 1,177
-------
PUERTO RICO -- 2.1%
600 Puerto Rico, Electric
Power Authority, Power
Revenue, Series 1991P,
6.750% 07/01/03......... Baa1 A- 622
380 Puerto Rico, Housing Bank
and Finance Agency,
Single-Family Mortgage
Revenue, (Affordable
Housing Mortgage -
Portfolio I Project)
Series 1995, AMT,
(GNMA/FNMA/FHLMC COLL),
5.450% 04/01/05......... Aaa AAA 388
-------
1,010
-------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $47,079).......................... 47,204
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.0%
(Cost $22)
22 Nations Municipal Reserves#............ $ 22
-------
TOTAL INVESTMENTS
(Cost $47,101*)............... 98.9% 47,226
-------
OTHER ASSETS AND LIABILITIES
(NET)......................... 1.1%
Receivable for Fund shares sold........ $ 5
Interest receivable.................... 779
Investment advisory fee payable........ (1)
Administration fee payable............. (8)
Shareholder servicing and distribution
fees payable......................... (3)
Distributions payable.................. (186)
Accrued Trustees'/Directors' fees and
expenses............................. (22)
Accrued expenses and other
liabilities.......................... (29)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 535
-------
NET ASSETS...................... 100.0% $47,761
-------
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 3
Accumulated net realized loss on
investments sold..................... (422)
Net unrealized appreciation of
investments.......................... 125
Paid-in capital........................ 48,055
-------
NET ASSETS............................. $47,761
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
108
<PAGE> 113
NATIONS FUNDS
Nations Tennessee Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
-------------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($38,009,092 / 3,803,298 shares
outstanding)......................... $9.99
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($8,226,138 / 823,178
shares outstanding).................. $9.99
=====
Maximum sales charge................... 3.25%
Maximum offering price per share....... $10.33
INVESTOR B SHARES:
Net asset value and offering price per
share** ($1,523,629 / 152,450 shares
outstanding)......................... $9.99
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,678 / 269 shares
outstanding)......................... $9.95
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized depreciation of $125 on
investment securities was comprised of gross appreciation of $760 and gross
depreciation of $635 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$47,101.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
Nations Tennessee Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 28.30%
Hospital Revenue 23.12%
Housing Revenue 16.91%
Industrial Development Revenue/
Pollution Control Revenue 13.19%
SEE NOTES TO FINANCIAL STATEMENTS.
109
<PAGE> 114
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.8%
TENNESSEE -- 95.8%
$500 Blount County, Tennessee,
Public Building
Authority, Public
Facility Revenue, Series
1998, (FGIC Insured),
5.000% 04/01/19.......... Aaa AAA $ 457
250 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical Center
Project) Series 1993,
(FSA Insured),
5.500% 10/01/07.......... Aaa AAA 260
740 Hamilton County, Tennessee,
GO Refunding, Series
1998B,
5.100% 08/01/24.......... Aa2 NR 690
575 Humphreys County,
Tennessee, Industrial
Development Board, Solid
Waste Disposal, (E.I.
duPont de Nemours and
Company Project) Series
1994, AMT,
6.700% 05/01/24.......... Aa AA- 614
400 Knox County, Tennessee,
Health Educational and
Housing Facilities Board,
Hospital Facilities
Improvement Revenue
Refunding, (Baptist
Health System of East
Tennessee, Inc. Project)
Series 1996, (CONNIE LEE
Insured),
5.500% 04/15/11.......... Aaa AAA 409
300 Knox County, Tennessee,
Health Educational and
Housing Facilities Board,
Revenue Refunding, (Fort
Sanders Alliance Project)
Series 1993, (MBIA
Insured),
7.250% 01/01/09.......... Aaa AAA 347
500 Knox County, Tennessee,
Health Educational and
Housing Facilities Board,
Revenue, (University
Health Systems Inc.
Project) Series 1999,
5.750% 04/01/19.......... Baa1 NR 450
200 Loudon County, Tennessee,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Kimberly-Clark
Corporation Project)
Series 1993, AMT,
6.200% 02/01/23.......... Aa2 AA 203
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$500 Maury County, Tennessee,
Industrial Development
Board, Multi-Modal PCR
Refunding, (General
Motors
Corporation - Saturn
Corporation Project)
Series 1994,
6.500% 09/01/24.......... A2 A $ 515
250 McMinn County, Tennessee,
Industrial Development
Board, Recycling
Facilities Revenue,
(Bowater Inc. Project)
Series 1992, AMT,
7.400% 12/01/22.......... Baa3 BBB 258
300 Memphis, Tennessee,
Electric System Revenue
Refunding, Series 1993,
4.900% 01/01/11.......... Aa3 AA 296
400 Memphis, Tennessee, GO,
Series 2000,
5.000% 04/01/17.......... Aa2 AA 376
250 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1992, AMT,
6.750% 09/01/12.......... Baa2 BBB 260
500 Memphis-Shelby County,
Tennessee, Airport
Authority, Special
Facilities and Project
Revenue Refunding,
(Federal Express
Corporation Project)
Series 1997,
5.350% 09/01/12.......... Baa2 BBB 487
250 Metropolitan Government,
Nashville and Davidson
County, Revenue, (Meharry
Medical College Project)
Series 1994, (AMBAC
Insured), Prerefunded
12/01/04 @ 102,
7.000% 12/01/11.......... Aaa AAA 277
350 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Electric Revenue, Series
1996A,
5.625% 05/15/14.......... Aa3 AA 357
400 Metropolitan Government,
Nashville and Davidson
County, Tennessee,
Electric Revenue, Series
1998B,
5.500% 05/15/13.......... Aa3 AA 413
250 Metropolitan Government,
Nashville and Davidson
County, Tennessee, GO
Refunding, Series 1993,
5.250% 05/15/07.......... Aa2 AA 257
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
110
<PAGE> 115
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$500 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health
and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.000% 12/01/16.......... Aaa AAA $ 529
300 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Health
and Educational
Facilities Board,
Improvement Revenue
Refunding, (Meharry
Medical College Project)
Series 1996, (AMBAC
Insured),
6.000% 12/01/09.......... Aaa AAA 324
400 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Multi-
Family Housing Revenue,
(Enchantment,
Inc. - Welch Bend
Apartments Project)
Series 1996A, (FNMA
COLL), Mandatory Put
01/01/07 @ 100,
5.500% 01/01/27.......... NR AAA 405
300 Metropolitan Government,
Nashville and Davidson
County, Tennessee, Water
and Sewer Revenue
Refunding, Series 1993,
(FGIC Insured),
5.200% 01/01/13.......... Aaa AAA 302
250 Sumner County, Tennessee,
Health Educational and
Housing Facilities Board,
Revenue Refunding,
(Sumner Regional Health
Systems, Inc. Project)
Series 1994,
7.000% 11/01/03.......... NR A- 262
250 Tennessee State, Local
Development Authority,
Revenue Refunding, (State
Loan Program) Series
1993A,
5.750% 03/01/11.......... A2 AA- 257
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TENNESSEE -- (CONTINUED)
$185 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1996,
AMT,
5.850% 07/01/17.......... Aa2 AA $ 186
300 Tennessee, Housing
Development Agency,
Revenue, (Home Ownership
Program) Series 1998,
AMT,
4.750% 07/01/08.......... Aa2 AA 294
------
9,485
------
PUERTO RICO -- 3.0%
300 Puerto Rico, Public
Buildings Authority,
Guaranteed Public
Education and Health
Facilities Revenue
Refunding, Series 1993M,
5.500% 07/01/21.......... Baa1 A 297
------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $9,631)............................ 9,782
------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
---------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $31)
31 Nations Municipal Reserves#.............. 31
------
TOTAL INVESTMENTS
(Cost $9,662*).................. 99.1% 9,813
------
OTHER ASSETS AND LIABILITIES
(NET)........................... 0.9%
Interest receivable...................... $ 170
Receivable from investment advisor....... 5
Administration fee payable............... (2)
Shareholder servicing and distribution
fees payable........................... (4)
Distributions payable.................... (37)
Accrued Trustees'/Directors' fees and
expenses............................... (21)
Accrued expenses and other liabilities... (17)
------
TOTAL OTHER ASSETS AND LIABILITIES
(NET).................................. 94
------
NET ASSETS........................ 100.0% $9,907
======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 116
NATIONS FUNDS
Nations Tennessee Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
(000)
--------------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income...... $ 22
Accumulated net realized loss on
investments sold....................... (131)
Net unrealized appreciation of
investments............................ 151
Paid-in capital.......................... 9,865
------
NET ASSETS............................... $9,907
======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($4,397,844 / 448,428
shares outstanding).................... $9.81
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($1,676,603 / 170,930 shares
outstanding)........................... $9.81
=====
Maximum sales charge..................... 4.75%
Maximum offering price per share......... $10.30
INVESTOR B SHARES:
Net asset value and offering price per
share** ($3,679,870 / 375,190 shares
outstanding)........................... $9.81
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($152,244 / 15,523 shares
outstanding)........................... $9.81
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized depreciation of $151 on
investment securities was comprised of gross appreciation of $274 and gross
depreciation of $123 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was $9,631.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of 1940,
as amended, and sub-advised by Banc of America Capital Management, Inc.
Nations Tennessee Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
AMBAC 11.41%
Nations Tennessee Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
Industrial Development Revenue/
Pollution Control Revenue 23.70%
General Obligations 20.70%
Hospital Revenue 17.76%
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 117
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 98.8%
TEXAS -- 89.0%
$ 1,450 Alliance Airport
Authority Inc., Texas,
Special Facilities
Revenue, (American
Corporation-American
Airlines Inc. Project)
Series 1991, AMT,
7.000% 12/01/11........ Baa1 BBB- $ 1,565
750 Amarillo, Texas, Junior
College District, GO,
Series 1995, (FGIC
Insured),
7.600% 02/15/06........ Aaa AAA 832
1,375 Arlington, Texas,
Independent School
District, GO, Series
1991A, (PSF-GTD),
6.375% 08/15/01........ Aaa NR 1,398
1,500 Arlington, Texas,
Independent School
District, GO, Series
1992, (PSF-GTD),
Prerefunded 02/15/02 @
100,
6.100% 02/15/05........ Aaa NR 1,532
1,775 Arlington, Texas,
Independent School
District, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD),
6.100% 02/15/05........ Aaa NR 1,808
1,000 Arlington, Texas,
Waterworks and Sewer
Improvement Revenue
Refunding, Series 1992,
(FGIC Insured),
6.100% 06/01/02........ Aaa AAA 1,025
5,750 Austin, Texas, GO
Refunding, Series 1993,
5.500% 09/01/04........ Aa2 AA+ 5,929
2,000 Austin, Texas, Public
Improvement GO, Series
1992, (AMBAC Insured),
Prerefunded
09/01/02 @ 100,
5.900% 09/01/05........ Aaa AAA 2,052
4,275 Austin, Texas, Utility
System Revenue
Refunding, Series 1992,
(AMBAC Insured),
6.250% 11/15/03........ Aaa AAA 4,478
3,000 Austin, Texas, Utility
System Revenue
Refunding, Series 1992,
(AMBAC Insured),
6.250% 11/15/05........ Aaa AAA 3,149
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 965 Brazos, Texas, Higher
Education Authority
Inc., Revenue
Refunding, Senior Lien,
Series 1994A-2, AMT,
(GTD STD LNS),
6.050% 06/01/03........ Aaa NR $ 983
4,365 Cass County, Texas,
Industrial Development
Corporation,
Environmental Revenue,
(International Paper
Corporation Project)
Series 1997A, AMT,
(GTY-AGMT),
6.250% 04/01/21........ Baa1 BBB+ 4,325
4,115 Cedar Hill, Texas,
Independent School
District, Prerefunded,
GO, Series 2000,
(PSF-GTD),
6.550%(+) 08/15/16..... NR AAA 1,565
3,840 Cedar Hill, Texas,
Independent School
District, Prerefunded,
GO, Series 2000,
(PSF-GTD),
6.600%(+) 08/15/17..... NR AAA 1,358
3,525 Clear Creek, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
5.375% 02/01/06........ Aaa AAA 3,605
2,860 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
5.600% 08/15/05........ Aaa AAA 2,937
2,940 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
5.700% 08/15/06........ Aaa AAA 3,022
1,565 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
Prerefunded 08/15/03 @
100,
5.600% 08/15/05........ NR AAA 1,609
1,575 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
Prerefunded 08/15/03 @
100,
5.600% 08/15/05........ Aaa AAA 1,619
1,510 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
Prerefunded 08/15/03 @
100,
5.700% 08/15/06........ NR AAA 1,557
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE> 118
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,550 Dallas, Texas,
Independent School
District, GO, Series
1993, (PSF-GTD),
Prerefunded 08/15/03 @
100,
5.700% 08/15/06........ Aaa.. AAA $ 1,598
5,000 Dallas-Fort Worth, Texas,
Regional Airport
Revenue Refunding,
(Dallas-Fort Worth
Airport Project) Series
1994A, (MBIA Insured),
5.400% 11/01/03........ Aaa.. AAA 5,121
500 Denton, Texas, Health
Facilities Development
Revenue Refunding,
(Evangelical Lutheran
Good Samaritan Society
Project) Series 1994,
(AMBAC Insured),
6.000% 05/01/05........ Aaa.. AAA 526
1,395 El Paso, Texas, GO
Refunding, Series
1992C, (FGIC Insured),
5.700% 08/15/03........ Aaa AAA 1,423
2,000 Garland, Texas, Utility
Systems Revenue
Refunding, Series 1992,
(AMBAC Insured),
5.900% 03/01/02........ Aaa.. AAA 2,037
3,000 Harris County, Texas,
Flood Control District
GO Refunding, Series
1991,
6.250% 10/01/04........ Aa1.. AA+ 3,049
1,115 Harris County, Texas,
Flood Control District,
GO, Series 1992A,
5.800% 10/01/03........ Aa1.. AA 1,141
3,155 Harris County, Texas,
Health Facilities
Development Authority,
Revenue, (Memorial
Hospital Systems
Project) Series 1997A,
(MBIA Insured),
6.000% 06/01/10........ Aaa.. AAA 3,379
2,000 Harris County, Texas,
Health Facilities
Development Authority,
Revenue, Series 1999A,
5.500% 07/01/09........ Aaa.. AAA 2,053
2,000 Harris County, Texas,
Health Facilities
Development
Corporation, Revenue,
(Christus Health
Project) Series 1999A,
(MBIA Insured),
5.500% 07/01/10........ Aaa.. AAA 2,048
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 4,000 Harris County, Texas,
Toll Road Revenue
Refunding, Senior Lien,
Series 1994, (FGIC
Insured),
5.000% 08/15/16........ Aaa.. AAA $ 3,753
3,380 Harris County, Texas,
Toll Road Revenue
Refunding, Senior Lien,
Series 1994, (FGIC
Insured),
5.375% 08/15/20........ Aaa.. AAA 3,250
1,305 Houston, Texas, GO
Refunding, Series
1992C, Prerefunded
03/01/02 @ 100,
6.000% 03/01/05........ Aa3.. AA- 1,331
3,085 Houston, Texas, GO,
Unrefunded Balance,
Series 1992C,
6.000% 03/01/05........ Aa3.. AA- 3,141
5,000 Houston, Texas,
Independent School
District, GO Refunding,
Series 1993, (PSF-GTD),
5.400% 08/15/07........ Aaa.. AAA 5,079
1,025 Houston, Texas, Public
Improvement GO, Series
1991A, Prerefunded
04/01/01 @ 100,
6.600% 04/01/05........ Aa3 AA- 1,036
5,000 Houston, Texas, Water and
Sewer Systems Revenue
Refunding, Junior Lien,
Series 1997A, (FGIC
Insured),
5.375% 12/01/27........ Aaa AAA 4,734
10,000 Houston, Texas, Water and
Sewer Systems Revenue,
Junior Lien, Series
1996A, (FGIC Insured),
5.250% 12/01/25........ Aaa AAA 9,326
6,145 Houston, Texas, Water and
Sewer Systems Revenue,
Unrefunded Balance,
Prior Lien, Series
1992B,
5.900% 12/01/03........ A2 A+ 6,368
1,500 Klein, Texas, Independent
School District, GO,
Series 1999A,
(PSF-GTD), Prerefunded
08/01/09 @ 100,
5.125% 08/01/15........ Aaa AAA 1,464
2,000 Lewisville, Texas,
Independent School
District, GO Refunding,
Series 1992, (PSF-GTD),
6.100% 08/15/02........ Aaa NR 2,055
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
114
<PAGE> 119
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 1,085 Lewisville, Texas,
Independent School
District, GO Refunding,
Series 1992, (PSF-GTD),
Prerefunded 08/15/02 @
100,
6.250% 08/15/05........ Aaa NR $ 1,119
3,815 Lewisville, Texas,
Independent School
District, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD),
6.250% 08/15/05........ Aaa NR 3,923
5,000 Mesquite, Texas,
Independent School
District 1, GO
Refunding, Series 1993,
(PSF-GTD),
5.300% 08/15/06........ Aaa AAA 5,096
1,380 Mesquite, Texas,
Independent School
District 1, GO,
Unrefunded Balance,
Series 1992, (PSF-GTD),
5.750% 08/15/03........ Aaa AAA 1,401
5,000 North Central Texas,
Health Facilities
Development
Corporation, Health
Facilities Revenue,
(Presbyterian
Healthcare Residential
Project) Series 1996B,
(MBIA Insured),
5.500% 06/01/16........ Aaa AAA 5,052
7,000 North Central, Texas,
Health Facilities
Development
Corporation, Revenue
Refunding, (Baylor
Health Care Systems
Project) Series 1995,
5.500% 05/15/13........ Aa3 AA- 6,937
1,500 Pearland, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD),
5.500% 02/15/20(a)..... Aaa AAA 1,474
1,835 Plano, Texas, Independent
School District, GO,
Series 1995, (PSF-GTD),
7.000% 02/15/05........ Aaa AAA 1,999
1,000 Port of Houston Authority
of Harris County,
Texas, Revenue
Refunding, Series 1992,
(MBIA Insured),
6.300% 05/01/04........ Aaa AAA 1,025
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 8,100 Red River Authority of
Texas, PCR, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.875% 04/01/17........ Baa2 BBB $ 8,177
4,000 Red River Authority,
Texas, PCR Refunding,
Series 1991, (AMBAC
Insured),
5.200% 07/01/11........ Aaa NR 4,002
5,000 Round Rock, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD),
5.000% 08/01/18(a)..... Aaa AAA 4,680
465 San Antonio, Texas,
Refunding GO, Series
1992, Prerefunded
08/01/02 @ 100,
5.500% 08/01/05........ Aa2 AA+ 473
4,185 San Antonio, Texas,
Unrefunded GO, Series
1992,
5.500% 08/01/05........ Aa2 AA+ 4,244
3,300 Tarrant County, Texas,
Health Facilities
Development
Corporation, Health
Systems Revenue, (Texas
Health Resources
Systems Project) Series
1997A, (MBIA Insured),
5.750% 02/15/08........ Aaa AAA 3,375
5,000 Tarrant County, Texas,
Water Control and
Improvement District
Number 1, Water Revenue
Refunding, Series 1992,
Prerefunded 03/01/01 @
100,
5.900% 03/01/03........ Aaa AA 5,031
500 Texas State, College
Student Loan Authority,
GO, Series 1994, AMT,
5.750% 08/01/11........ Aa1 AA 506
1,000 Texas State, College
Student Loan Authority,
GO, Series 1996, AMT,
5.000% 08/01/12........ Aa1 AA 979
6,835 Texas State, College
Student Loan Authority,
GO, Series 1997, (GTD
STD LNS),
5.250% 08/01/07........ Aa1 AA 6,995
1,425 Texas State, College
Student Loan Authority,
GO, Series 1997, AMT,
(GTD STD LNS),
5.000% 08/01/05........ Aa1 AA 1,443
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE> 120
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 3,565 Texas State, College
Student Loan Authority,
GO, Series 1999, AMT,
5.000% 08/01/07........ Aa1 AA $ 3,598
8,710 Texas State, Department
of Housing and
Community Affairs,
Single-Family Revenue,
Series 1997A-1, AMT,
(GNMA/FNMA COLL), (MBIA
Insured),
5.250% 09/01/13........ Aaa AAA 8,505
5,000 Texas State, GO
Refunding, Series
1992A,
5.800% 10/01/04........ Aa1 AA 5,216
2,955 Texas State, Port of
Corpus Christi, Revenue
Authority Refunding,
(Hoechst Celanese
Corporation Project)
Series 1992,
6.875% 04/01/17........ Baa2 BBB 2,987
5,000 Texas State, Public
Finance Authority,
Building Revenue
Refunding, Series
1992B, (AMBAC Insured),
6.100% 02/01/04........ Aaa AAA 5,222
1,200 Texas State, Public
Finance Authority, GO
Refunding, Series
1996C,
6.000% 10/01/06........ NR AA 1,278
3,500 Texas State, Texas A&M
University, Revenue,
Series 1999,
5.500% 05/15/20........ Aa2 AA+ 3,438
3,250 Texas State, Turnpike
Authority of Dallas,
North Tollway Revenue,
(President George Bush
Turnpike Project)
Series 1996, (AMBAC
Insured),
5.450%(+) 01/01/09..... Aaa AAA 2,141
3,000 Texas State, Water
Development Board,
Revenue, Series 1997,
5.000% 07/15/12........ Aaa AAA 2,952
1,850 Texas State, Water
Development GO, Series
1997,
5.500% 08/01/07........ Aa1 AA 1,928
5,000 Texas State, Water
Development GO, Series
1997,
5.250% 08/01/28........ Aa1 AA 4,664
2,000 Texas State, Water
Financial Assistance
GO, Series 1999, (MBIA
Insured),
5.500% 08/01/29........ Aaa AAA 1,938
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 6,000 Texas, Municipal Power
Agency, Revenue
Refunding, Series 1992,
(MBIA Insured),
Prerefunded
09/01/02 @ 102,
5.900% 09/01/04........ Aaa AAA $ 6,266
15,000 Texas, Municipal Power
Agency, Revenue
Refunding, Series 1993,
(MBIA Insured),
5.250% 09/01/05........ Aaa AAA 15,297
1,100 Texas, Water Development
Board, Revenue, Series
1999B,
5.625% 07/15/21........ Aaa AAA 1,097
4,085 Travis County, Texas,
Health Facilities
Development
Corporation, Revenue,
(Ascension Health
Credit Project) Series
1999A, (MBIA Insured),
5.750% 11/15/09........ Aaa AAA 4,307
3,250 Travis County, Texas,
Limited Tax GO
Refunding, Series
1992A, (MBIA Insured),
5.500% 03/01/03........ Aaa AAA 3,317
3,500 Travis County, Texas,
Limited Tax GO
Refunding, Series
1992A, (MBIA Insured),
5.600% 03/01/04........ Aaa AAA 3,576
1,500 Travis County, Texas,
Limited Tax GO
Refunding, Series
1992A, (MBIA Insured),
5.750% 03/01/06........ Aaa AAA 1,535
500 Trinity River Authority,
Texas, PCR, (Texas
Instruments Inc.
Project) Series 1996,
AMT,
6.200% 03/01/20........ NR A 509
3,885 Trinity River Authority,
Texas, Ten Mile
Revenue, Series 1992,
(AMBAC Insured),
5.700% 08/01/03........ Aaa AAA 3,961
4,610 Waxahachie, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD),
6.600%(+) 08/15/17..... Aaa NR 1,641
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
116
<PAGE> 121
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$ 4,755 Waxahachie, Texas,
Independent School
District, Prerefunded,
GO, Series 2000,
(PSF-GTD),
6.450%(+) 08/15/15..... Aaa NR $ 1,966
--------
265,530
--------
ALABAMA -- 1.6%
3,000 Courtland, Alabama,
Industrial Development
Board, Solid Waste
Disposal Revenue,
(Champion International
Corporation Project)
Series 1992,
7.000% 06/01/22........ Baa1 BBB+ 3,076
1,750 Mobile, Alabama,
Industrial Development
Board, Environmental
Improvement Revenue,
(International Paper
Company Project) Series
2000A, AMT,
6.700% 03/01/24........ Baa1 BBB+ 1,801
--------
4,877
--------
CONNECTICUT -- 1.7%
5,000 Connecticut State, GO,
Series 1995A,
5.625% 03/15/09........ Aa3 AA 5,176
--------
FLORIDA -- 0.3%
1,000 Florida, Housing Finance
Agency, Multi-Family
Housing Revenue
Refunding, (United
Dominion Realty Trust-
Andover Project) Series
1996E, AMT, Mandatory
Put
05/01/08 @ 100,
6.350% 05/01/26........ NR BBB+ 1,025
--------
ILLINOIS -- 0.4%
1,100 Rosemont, Illinois, GO,
Series 1991B,
(FGIC Insured),
6.400% 02/01/03........ Aaa AAA 1,128
--------
MAINE -- 0.7%
1,000 Bucksport, Maine, Solid
Waste Disposal Revenue,
(Champion International
Corporation Project)
Series 1985,
6.250% 05/01/10........ Baa1 BBB+ 1,015
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MAINE -- (CONTINUED)
1,000 Maine, Municipal Board
Bank, Revenue, Series
1990D,
7.100% 11/01/01........ Aa2 A+ 1,022
--------
2,037
--------
MICHIGAN -- 1.6%
$ 4,600 Detroit, Michigan, GO
Refunding, Series
1995B,
6.500% 04/01/02........ Baa1 A- $ 4,711
--------
MISSISSIPPI -- 0.9%
2,600 Warren County,
Mississippi,
Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A,
6.700% 08/01/18........ Baa1 BBB+ 2,694
--------
TENNESSEE -- 1.1%
3,135 Chattanooga-Hamilton
County, Tennessee,
Hospital Authority,
Revenue Refunding,
(Erlanger Medical
Center Project) Series
1993, (FSA Insured),
5.500% 10/01/07........ Aaa AAA 3,264
--------
WASHINGTON -- 1.5%
2,000 Washington State, GO,
Series 1991B,
Prerefunded 06/01/01 @
100,
6.300% 06/01/02........ Aa1 AA+ 2,025
2,425 Washington State, GO,
Series 1995C,
5.450% 07/01/07........ Aa1 AA+ 2,494
--------
4,519
--------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $288,342)........................ 294,961
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE> 122
NATIONS FUNDS
Nations Texas Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.4%
(Cost $1,093)
1,093 Nations Municipal Reserves#........... $ 1,093
--------
TOTAL INVESTMENTS
(Cost $289,435*)............. 99.2% 296,054
--------
OTHER ASSETS AND LIABILITIES
(NET)........................ 0.8%
Cash.................................. $ 1
Receivable for investment securities
sold................................ 1,507
Dividends receivable.................. 30
Interest receivable................... 3,953
Payable for Fund shares redeemed...... (908)
Investment advisory fee payable....... (53)
Administration fee payable............ (49)
Shareholder servicing and distribution
fees payable........................ (2)
Distributions payable................. (1,240)
Payable for investment securities
purchased........................... (622)
Accrued Trustees'/Directors' fees and
expenses............................ (22)
Accrued expenses and other
liabilities......................... (66)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)............................... 2,529
--------
NET ASSETS..................... 100.0% $298,583
========
NET ASSETS CONSIST OF:
Undistributed net investment income... $ 238
Accumulated net realized loss on
investments sold.................... (4,695)
Net unrealized appreciation of
investments......................... 6,619
Paid-in capital....................... 296,421
--------
NET ASSETS............................ $298,583
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($293,033,461 / 29,105,481 shares
outstanding)........................ $10.07
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($3,497,709 / 347,415
shares outstanding)................. $10.07
======
Maximum sales charge.................. 3.25%
Maximum offering price per share...... $10.41
INVESTOR B SHARES:
Net asset value and offering price per
share** ($2,049,354 / 203,560 shares
outstanding)........................ $10.07
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,668 / 265 shares
outstanding)........................ $10.07
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $6,619 on
investment securities was comprised of gross appreciation of $7,448 and
gross depreciation of $829 for federal income tax purposes. At September 30,
2000, the aggregate cost of securities for federal income tax purposes was
$289,435.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Texas Intermediate Municipal Bond Fund had the following insurance
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
MBIA 21.68%
PSFG 18.59%
Nations Texas Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 41.20%
SEE NOTES TO FINANCIAL STATEMENTS.
118
<PAGE> 123
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 95.4%
TEXAS -- 87.4%
$ 500 Austin, Texas, Public
Improvement, GO, Series
1999,
5.375% 09/01/18......... Aa2 AA+ $ 489
500 Dallas County, Texas, GO,
Series 1995,
5.250% 08/15/14......... Aaa AAA 493
500 Dallas-Fort Worth, Texas,
Regional Airport Revenue
Refunding, Series 1994A,
(MBIA Insured),
6.000% 11/01/09......... Aaa AAA 523
400 Fort Worth, Texas, Higher
Education Financial
Corporation, Higher
Education Revenue,
(Texas Christian
University Project)
Series 1997,
5.000% 03/15/17......... Aa3 AA- 372
500 Grand Prairie, Texas,
Independent School
District, GO, Refunding,
Series 1996, (PSF-GTD),
5.200% 02/15/24......... Aaa AAA 465
500 Gulf Coast, Texas, Waste
Disposal Authority,
Revenue Refunding,
(Houston Light and Power
Company Project) Series
1992A, (MBIA Insured),
6.375% 04/01/12......... Aaa AAA 524
500 Harris County, Texas,
Health Facilities
Development Corporation,
Hospital Revenue, (Texas
Childrens Hospital
Project) Series 1995,
5.500% 10/01/19......... Aa2 AA 498
500 Klein, Texas, Independent
School District, GO,
Series 1999A, (PSF-GTD),
Prerefunded 08/01/09 @
100, 5.125% 08/01/15.... Aaa AAA 488
500 Lower Neches Valley
Authority, Texas,
Industrial Development
Corporation, Revenue
Refunding, (Mobil Oil
Refining Corporation
Project) Series 1997,
5.800% 05/01/22......... Aaa AAA 494
600 Northside, Texas,
Independent School
District, GO, Series
1999,
4.750% 08/15/18......... Aaa AAA 530
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXAS -- (CONTINUED)
$1,000 Red River Authority of
Texas, PCR, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.875% 04/01/17......... Baa2 BBB $ 1,009
600 Round Rock, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD),
5.000% 08/01/18(a)...... Aaa AAA 562
1,000 Tarrant County, Texas,
Health Facilities
Development Corporation,
Health Systems Revenue,
(Harris Methodist Health
Systems Project) Series
1994, (MBIA-IBC
Insured),
6.000% 09/01/10......... Aaa AAA 1,084
500 Texas State, College
Student Loan Authority,
GO, Series 1994, AMT,
5.750% 08/01/11......... Aa1 AA 505
455 Texas State, GO, Series
1999,
5.250% 08/01/21......... Aa1 AA 432
375 Texas State, Veterans
Housing Assistance GO
Refunding, Series 1994C,
6.400% 12/01/09......... Aa1 AA 384
500 Texas State, Water
Financial Assistance GO,
Series 1999, (MBIA
Insured),
5.500% 08/01/29......... Aaa AAA 485
400 Texas, Water Development
Board, Revenue, Series
1999B,
5.625% 07/15/21......... Aaa AAA 399
500 Travis County, Texas,
Health Facilities
Development Corporation,
Revenue, (Ascension
Health Credit Project)
Series 1999A, (AMBAC
Insured),
5.875% 11/15/24......... Aaa AAA 502
500 Trinity River Authority,
Texas, PCR, (Texas
Instruments Inc.
Project) Series 1996,
AMT,
6.200% 03/01/20......... NR A 509
500 University of Texas,
University Finance
Systems Revenue, Series
1995A,
5.200% 08/15/17......... Aaa AAA 476
1,000 Waxahachie, Texas,
Independent School
District, GO, Series
2000, (PSF-GTD),
6.600%(+) 08/15/17...... Aaa NR 356
-------
11,579
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE> 124
NATIONS FUNDS
Nations Texas Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
OHIO -- 8.0%
$1,000 Lucas County, Ohio,
Hospital Revenue,
(Flower Hospital
Project) Series 1993,
Prerefunded 12/01/04 @
101,
6.125% 12/01/13......... NR NR $ 1,060
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $12,123).......................... 12,639
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES
(000)
------
<C> <S> <C>
INVESTMENT COMPANIES -- 3.7%
(Cost $494)
494 Nations Municipal Reserves#............. 494
-------
TOTAL INVESTMENTS
(Cost $12,617*)................ 99.1% 13,133
-------
OTHER ASSETS AND LIABILITIES
(NET).......................... 0.9%
Cash.................................... $ 1
Interest receivable..................... 207
Receivable from investment advisor...... 6
Administration fee payable.............. (2)
Shareholder servicing and distribution
fees payable.......................... (5)
Distributions payable................... (50)
Accrued Trustees'/Directors' fees and
expenses.............................. (22)
Accrued expenses and other
liabilities........................... (22)
-------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................. 113
-------
NET ASSETS....................... 100.0% $13,246
=======
</TABLE>
<TABLE>
<CAPTION>
VALUE
(000)
-----------------------------------------------------------
<S> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income..... $ 47
Accumulated net realized loss on
investments sold...................... (454)
Net unrealized appreciation of
investments........................... 516
Paid-in capital......................... 13,137
-------
NET ASSETS.............................. $13,246
=======
PRIMARY A SHARES:
Net asset value, offering and redemption
price per share ($7,570,405 / 785,110
shares outstanding)................... $9.64
=====
INVESTOR A SHARES:
Net asset value and redemption price per
share ($324,532 / 33,653 shares
outstanding).......................... $9.64
=====
Maximum sales charge.................... 4.75%
Maximum offering price per share........ $10.12
INVESTOR B SHARES:
Net asset value and offering price per
share** ($5,265,949 / 546,080 shares
outstanding).......................... $9.64
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($84,887 / 8,803 shares
outstanding).......................... $9.64
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $516 on
investment securities was comprised of gross appreciation of $574 and gross
depreciation of $58 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$12,617.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
(+) Zero coupon security. The rate shown reflects the yield to maturity.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when issued" basis.
Nations Texas Municipal Bond Fund had the following insurance concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
MBIA 11.56%
PSFG 10.61%
Nations Texas Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
General Obligations 39.43%
Industrial Development Revenue/
Pollution Control Revenue 19.50%
SEE NOTES TO FINANCIAL STATEMENTS.
120
<PAGE> 125
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.6%
VIRGINIA -- 95.9%
$ 2,000 Alexandria, Virginia,
Redevelopment and
Housing Authority,
Multi-Family Housing
Mortgage Revenue,
(Buckingham Village
Apartments Project)
Series 1996A, AMT,
6.050% 07/01/16........ NR A+ $ 2,022
1,000 Amherst, Virginia,
Industrial Development
Authority, Revenue
Refunding,
(Georgia-Pacific
Corporation Project)
Series 1998, AMT,
5.250% 02/01/11........ Baa2 NR 970
3,285 Arlington County,
Virginia, GO Refunding,
Series 1993,
6.000% 06/01/12........ Aaa AAA 3,582
2,900 Arlington County,
Virginia, GO, Series
1991, Prerefunded
12/01/01 @ 102,
5.900% 12/01/03........ Aaa AAA 3,006
3,000 Arlington County,
Virginia, GO, Series
1993,
5.000% 07/15/03........ Aaa AAA 3,045
2,345 Arlington County,
Virginia, GO, Series
1994,
5.400% 08/01/02........ Aaa AAA 2,387
2,000 Arlington County,
Virginia, Industrial
Development Authority,
Facilities Revenue
Refunding, (Lee Gardens
Housing
Corporation-Housing
Mortgage - Woodbury
Park Apartments
Project) Series 1998A,
5.450% 01/01/29........ NR A 1,828
1,000 Arlington County,
Virginia, Industrial
Development Authority,
Facilities Revenue,
(The Nature Conservancy
Project) Series 1997A,
5.450% 07/01/27........ Aa1 NR 970
1,000 Arlington County,
Virginia, Industrial
Development Authority,
Hospital Facilities
Revenue, (Arlington
Hospital Project)
Series 1991A,
Prerefunded 09/01/01 @
102,
6.650% 09/01/05........ Aaa NR 1,040
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,000 Arlington County,
Virginia, Industrial
Development Authority,
IDR Refunding, (Ogden
Martin Systems Project)
Series 1998A, (FSA
Insured),
5.250% 01/01/05........ Aaa AAA $ 2,046
3,515 Arlington County,
Virginia, Industrial
Development Authority,
Revenue, (Ogden Martin
Systems of
Union-Alexandria/
Arlington Project)
Series 1998B, AMT, (FSA
Insured),
5.250% 01/01/09........ Aaa AAA 3,585
2,000 Arlington County,
Virginia, Industrial
Development Authority,
Revenue, (Ogden Martin
Systems of
Union-Alexandria/
Arlington Project)
Series 1998B, AMT, (FSA
Insured),
5.250% 01/01/10........ Aaa AAA 2,035
3,865 Arlington, Virginia, GO,
Series 1999, (State Aid
Withholding),
5.250% 06/01/16........ Aaa AAA 3,832
3,455 Augusta County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Augusta
Hospital Corporation
Project) Series 1991,
Prerefunded 09/01/01 @
102,
7.000% 09/01/21........ A AAA 3,603
2,000 Brunswick County,
Virginia, Industrial
Development Authority,
Correctional Facility
Lease Revenue, Series
1996, (MBIA Insured),
5.250% 07/01/04........ Aaa AAA 2,043
1,000 Charlottesville-Albemarle,
Virginia, Airport
Authority, Revenue
Refunding, Series 1995,
AMT,
6.125% 12/01/09........ NR BBB 1,028
6,195 Chesapeake, Virginia, GO
Refunding, Series 1993,
5.125% 12/01/05........ Aa3 AA 6,350
1,000 Chesapeake, Virginia, GO,
Series 1992,
5.700% 08/01/01........ Aa3 AA 1,011
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE> 126
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Chesapeake, Virginia, GO,
Series 1998, (State Aid
Withholding),
4.650% 08/01/11........ Aa3 AA $ 967
1,525 Chesapeake, Virginia,
Public Improvement GO,
Series 1996, (State Aid
Withholding),
5.000% 05/01/03........ Aa3 AA 1,544
2,000 Chesapeake, Virginia,
Water and Sewer GO,
Series 1995A, (State
Aid Withholding),
7.000% 12/01/09........ Aa3 AA 2,230
2,000 Chesterfield County,
Virginia, GO Refunding,
Series 1991,
5.900% 07/15/02........ Aaa AAA 2,051
1,000 Chesterfield County,
Virginia, GO, Series
1990B,
6.500% 01/01/02........ Aaa AAA 1,025
2,120 Chesterfield County,
Virginia, GO, Series
1990B, Prerefunded
01/01/01 @ 102,
6.700% 01/01/11........ NR AAA 2,174
1,000 Chesterfield County,
Virginia, Water and
Sewer Authority,
Revenue Refunding,
Series 1992,
6.200% 11/01/05........ Aa2 AA 1,049
2,020 Chesterfield County,
Virginia, Water and
Sewer Authority,
Revenue Refunding,
Series 1992A,
5.625% 11/01/01........ Aa2 AA 2,047
1,320 Covington-Allegheny
County, Virginia,
Industrial Development
Authority, PCR
Refunding, (Westvaco
Corporation Project)
Series 1994,
5.900% 03/01/05........ A3 BBB+ 1,383
3,385 Fairfax County, Virginia,
Economic Development
Authority, Resource
Recovery, Refunding
Revenue, Series 1998A,
AMT, (AMBAC Insured),
6.050% 02/01/09........ Aaa AAA 3,649
15,585 Fairfax County, Virginia,
Economic Development
Authority, Resource
Recovery, Revenue
Refunding, Series
1998A, AMT, (AMBAC
Insured),
5.950% 02/01/07........ Aaa AAA 16,575
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Fairfax County, Virginia,
GO, Series 1998, (State
Aid Withholding),
4.800% 04/01/10........ Aa1 AA+ $ 997
2,000 Fairfax County, Virginia,
Public Improvement GO,
Series 1997A,
6.000% 06/01/04........ Aaa AAA 2,099
3,135 Fairfax County, Virginia,
Water and Sewer
Authority, Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.100% 11/15/04........ Aaa AAA 3,197
2,000 Fairfax County, Virginia,
Water Authority,
Revenue, Unrefunded
Balance, Series 1992,
6.000% 04/01/22........ Aa1 AAA 2,074
2,000 Fairfax County, Virginia,
Water Authority, Water
Revenue Refunding,
Series 1997,
5.000% 04/01/29........ Aa1 AAA 1,803
2,000 Fairfax County, Virginia,
Water Authority, Water
Revenue, Series 2000,
5.625% 04/01/25........ Aa1 AAA 2,006
2,000 Giles County, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Facilities
Revenue, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.625% 12/01/22........ Baa2 BBB 2,007
5,000 Goochland County,
Virginia, Industrial
Development Authority,
(Old Dominion Electric
Cooperative Project)
Series 1998, AMT,
4.250% 12/01/02........ NR NR 4,893
1,200 Halifax County, Virginia,
Industrial Development
Authority, Hospital
Revenue Refunding,
(Halifax Regional
Hospital, Inc. Project)
Series 1998,
4.900% 09/01/10........ NR A 1,125
2,500 Hampton Roads, Virginia,
Sanitation District,
Capital Improvement
Revenue Refunding,
Series 1993,
4.500% 10/01/02........ Aa3 AA 2,502
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE> 127
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Hanover County, Virginia,
Industrial Development
Authority, Revenue,
(Memorial Regional
Medical Center Project)
Series 1995, (MBIA
Insured),
5.500% 08/15/25........ Aaa AAA $ 971
2,105 Henrico County, Virginia,
Industrial Development
Authority, Revenue,
Series 1994,
7.500% 08/01/02........ Aa2 AA 2,214
3,500 Henrico County, Virginia,
Industrial Development
Authority, Solid Waste
Revenue,
(Browning-Ferris
Project) Series 1995,
AMT, (GTY-AGMT),
Mandatory Put 12/01/05
@ 100,
5.300% 12/01/11........ B1 BB- 3,248
1,500 Henrico County, Virginia,
Water and Sewer
Authority, Revenue
Refunding, Series 1992,
6.200% 05/01/04........ Aa2 AAA 1,535
2,420 Henrico County, Virginia,
Water and Sewer
Authority, Revenue
Refunding, Series 1992,
6.300% 05/01/05........ Aa2 AAA 2,480
1,915 James City and County,
Virginia, GO, Series
1995, (FGIC Insured,
State Aid Withholding),
5.000% 12/15/08........ Aaa AAA 1,947
1,000 Leesburg, Virginia, GO
Refunding, Series 1993,
5.500% 08/01/06........ A1 A+ 1,034
2,000 Loudoun County, Virginia,
Improvement GO
Refunding, Series
1993A, (State Aid
Withholding),
5.000% 10/01/02........ Aa1 AA 2,023
1,500 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center
Project) Series 1995,
(FSA Insured),
5.500% 06/01/08........ Aaa AAA 1,554
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center
Project) Series 1995,
(FSA Insured),
5.600% 06/01/09........ Aaa AAA $ 1,038
5,000 Loudoun County, Virginia,
Industrial Development
Authority, Revenue,
(Air Force Retired
Officers - Falcons
Landing Project) Series
1994A, Prerefunded
11/01/04 @ 103,
8.750% 11/01/24........ Aaa AAA 5,899
1,000 Loudoun County, Virginia,
Sanitation Authority,
Water and Sewer Revenue
Refunding, Series 1992,
(FGIC Insured),
5.800% 01/01/01........ Aaa AAA 1,003
1,750 Loudoun County, Virginia,
Sanitation Authority,
Water and Sewer
Revenue, Series 1998,
(MBIA Insured),
4.750% 01/01/30........ Aaa AAA 1,480
1,140 Lynchburg, Virginia,
Public Improvement GO,
Series 1997,
5.400% 05/01/17........ Aa3 AA 1,135
1,000 Medical College of
Virginia, Hospital
Authority, General
Revenue, Series 1998,
(MBIA Insured),
4.800% 07/01/11........ Aaa AAA 977
1,000 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1992A, (MBIA Insured),
6.500% 10/01/05........ Aaa AAA 1,051
1,000 Newport News, Virginia,
GO, Series 1998,
5.000% 03/01/18........ Aa2 AA 937
5,000 Newport News, Virginia,
Public Improvement GO
Refunding, Series
1993B, (State Aid
Withholding),
5.200% 11/01/04........ Aa2 AA 5,125
1,000 Newport News, Virginia,
Water and Sewer
Authority, GO
Refunding, Series
1993B, (State Aid
Withholding),
5.100% 11/01/03........ Aa2 AA 1,018
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE> 128
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,020 Newport News, Virginia,
Water and Sewer
Authority, GO, Series
1992A,
5.500% 06/01/01........ Aa2 AA $ 1,028
1,095 Newport News, Virginia,
Water and Sewer
Authority, GO, Series
1992A,
5.600% 06/01/02........ Aa2 AA 1,116
1,000 Norfolk, Virginia,
Capital Improvement GO
Refunding, Series
1992A, Prerefunded
02/01/01 @ 102,
5.900% 02/01/06........ Aaa AAA 1,025
2,250 Norfolk, Virginia,
Redevelopment and
Housing Authority,
Educational Facilities
Revenue, (Tidewater
Community College
Campus Project) Series
1995,
5.875% 11/01/15........ Aa1 AA+ 2,320
2,000 Norfolk, Virginia, Water
Revenue, Series 1995,
(MBIA Insured),
5.700% 11/01/10........ Aaa AAA 2,091
1,000 Portsmouth, Virginia, GO
Refunding, Series 1993,
5.000% 08/01/02........ A3 AA- 1,009
1,000 Portsmouth, Virginia, GO
Refunding, Series 1993,
5.250% 08/01/04........ A3 AA- 1,023
1,465 Prince William County,
Virginia, Improvement
GO Refunding, Series
1992A,
6.200% 12/01/10........ Aa1 NR 1,498
1,775 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding, (Potomac
Hospital Corporation
Project) Series 1995,
6.550% 10/01/05........ A2 NR 1,853
1,300 Prince William County,
Virginia, Industrial
Development Authority,
Hospital Revenue
Refunding, (Prince
William Hospital
Project) Series 1993,
5.625% 04/01/12........ A2 NR 1,280
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,000 Prince William County,
Virginia, Park
Authority, Water and
Sewer Systems, Revenue
Refunding, Series 1994,
6.300% 10/15/07........ NR NR $ 1,076
3,000 Prince William County,
Virginia, Service
Authority, Revenue
Refunding, Series 1993,
(FGIC Insured),
5.000% 07/01/21........ Aaa AAA 2,732
1,000 Richmond, Virginia, GO
Refunding, Series
1995B, (FGIC Insured,
State Aid Withholding),
5.000% 01/15/21........ Aaa AAA 916
2,300 Richmond, Virginia,
Public Improvement GO
Refunding, Series
1993A, (State Aid
Withholding),
6.500% 01/15/02........ A1 AA 2,358
1,000 Richmond, Virginia,
Public Improvement GO,
Series 1991A,
Prerefunded 01/15/01 @
102,
6.200% 01/15/03........ Aaa AA 1,025
1,000 Richmond, Virginia,
Public Improvement GO,
Series 1991A,
Prerefunded 01/15/01 @
102,
6.700% 01/15/11........ Aaa AA 1,026
1,430 Richmond, Virginia,
Public Improvement GO,
Series 1993B, (State
Aid Withholding),
5.500% 07/15/09........ A1 AA 1,497
2,855 Richmond, Virginia,
Public Improvement,
Refunding GO, Series
1999A, (FSA Insured),
5.000% 01/15/19........ Aaa AAA 2,663
1,115 Roanoke County, Virginia,
IDR, (Hollins College
Project) Series 1998,
5.200% 03/15/17........ NR A 1,055
3,295 Roanoke, Virginia, Public
Improvement GO
Refunding, Series
1992B, Prerefunded
08/01/01 @ 100.5,
6.000% 08/01/03........ Aa3 AA 3,354
1,100 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA
Insured),
4.375% 07/15/05........ Aaa AAA 1,091
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE> 129
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,900 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA
Insured),
4.400% 07/15/06........ Aaa AAA $ 1,877
2,000 Spotsylvania County,
Virginia, GO Refunding,
Series 1998, (FSA
Insured),
4.400% 07/15/07........ Aaa AAA 1,963
1,580 Spotsylvania County,
Virginia, Public
Improvement GO, Series
1992,
5.200% 07/15/01........ A1 A+ 1,590
2,320 Spotsylvania County,
Virginia, Public
Improvement GO, Series
1992, Prerefunded
07/15/02 @ 102,
5.875% 07/15/09........ A1 A+ 2,417
2,535 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue,
(Mary Baldwin College
Project) Series 1996,
6.600% 11/01/14........ NR NR 2,613
1,110 Suffolk, Virginia, GO
Refunding, Series 1993,
5.400% 08/01/04........ Aa3 A+ 1,141
1,500 Suffolk, Virginia, GO
Refunding, Series 1993,
5.750% 08/01/08........ Aa3 A+ 1,560
2,000 Upper Occoquan, Virginia,
Sewer Authority,
Regional Sewer Revenue,
Series 1991, (MBIA
Insured), Prerefunded
07/01/01 @ 102,
6.250% 07/01/05........ Aaa AAA 2,067
1,700 Virginia State, Virginia
Commonwealth
University, Revenue
Refunding, Series
1994D,
4.350% 07/01/02........ A1 AA- 1,684
1,000 Virginia Beach, Virginia,
GO Refunding, Series
1992,
5.550% 02/01/01........ Aa1 AA 1,004
2,300 Virginia Beach, Virginia,
GO Refunding, Series
1993,
5.400% 07/15/08........ Aa1 AA 2,401
1,000 Virginia Beach, Virginia,
GO, Series 1989A,
6.900% 10/01/00........ Aa1 AA 1,000
1,000 Virginia Beach, Virginia,
GO, Series 1990A,
6.850% 06/01/01........ Aa1 AA 1,016
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 3,060 Virginia Beach, Virginia,
Public Improvement GO,
Series 2000,
5.500% 03/01/17........ Aa1 AA $ 3,075
2,805 Virginia Beach, Virginia,
Public Improvement GO,
Series 2000,
5.500% 03/01/18........ Aa1 AA 2,810
1,790 Virginia Beach, Virginia,
Water and Sewer
Revenue, Series 2000,
5.250% 08/01/17........ Aa3 AA 1,757
1,935 Virginia Beach, Virginia,
Water and Sewer
Revenue, Series 2000,
5.250% 08/01/18........ Aa3 AA 1,887
2,035 Virginia Beach, Virginia,
Water and Sewer
Revenue, Series 2000,
5.250% 08/01/19........ Aa3 AA 1,973
2,145 Virginia Beach, Virginia,
Water and Sewer
Revenue, Series 2000,
5.250% 08/01/20........ Aa3 AA 2,073
1,245 Virginia Commonwealth,
Transportation Board,
Transportation Revenue
Refunding, (U.S. Route
58 Corridor Program
Project) Series 1997C,
5.125% 05/15/19........ Aa1 AA 1,176
1,210 Virginia Port Authority,
Port Facilities
Revenue, Series 1997,
AMT, (MBIA Insured),
6.000% 07/01/07........ Aaa AAA 1,291
2,465 Virginia Port Authority,
Virginia, Commonwealth
Port Fund Revenue,
Series 1996, AMT,
5.550% 07/01/12........ Aa1 AA 2,515
1,000 Virginia Port Authority,
Virginia, Commonwealth
Port Fund Revenue,
Series 1997, AMT, (MBIA
Insured),
5.650% 07/01/17........ Aaa AAA 1,001
2,655 Virginia State Housing,
Housing Development
Authority, Revenue,
(Rental Housing
Project) Series 2000B,
AMT,
5.875% 08/01/15(a)..... Aa1 AA+ 2,696
1,175 Virginia State, Higher
Educational
Institutions GO, Series
1991A,
6.000% 06/01/01........ Aaa AAA 1,187
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE> 130
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 1,430 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
1995D-3,
6.000% 01/01/12........ Aa1 AA+ $ 1,479
1,470 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
1995D-3,
6.000% 07/01/12........ Aa1 AA+ 1,520
1,695 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
1995D-3,
6.100% 01/01/15........ Aa1 AA+ 1,740
3,595 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
2000B-3,
5.950% 07/01/14........ Aa1 AA+ 3,724
2,455 Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Revenue, Series
2000B-4,
5.500% 01/01/15........ Aa1 AA+ 2,436
2,000 Virginia State, Public
Building Authority,
Building Revenue
Refunding,
(Correctional
Facilities Project)
Series 1992A,
5.800% 08/01/02........ Aa1 NR 2,041
1,480 Virginia State, Public
School Authority,
Revenue Refunding,
Series 1993B, (State
Aid Withholding),
5.100% 01/01/05........ Aa1 AA 1,508
1,000 Virginia State, Public
School Authority,
Revenue, Series 1991A,
Prerefunded 08/01/01 @
102,
6.500% 08/01/08........ Aa2 AA 1,037
2,195 Virginia State, Public
School Authority,
Revenue, Series 1993A,
(State Aid
Withholding),
5.400% 01/01/08........ Aa1 AA 2,249
1,120 Virginia State, Resource
Authority,
Infrastructure Revenue,
Series 2000A, (MBIA
Insured),
5.500% 05/01/22........ Aaa AAA 1,107
820 Virginia State, Resource
Authority, Sewer
Systems Revenue
Refunding,
(Harrisonburg-
Rockingham Project)
Series 1998,
4.700% 05/01/11........ NR AA 795
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 2,970 Virginia State, Resource
Authority, Sewer
Systems Revenue
Refunding,
(Harrisonburg-
Rockingham Project)
Series 1998,
5.000% 05/01/18........ NR AA $ 2,769
1,000 Virginia State, Resource
Authority, Sewer
Systems Revenue,
(Hopewell Regional
Wastewater Facilities
Project) Series 1995A,
AMT,
6.000% 10/01/15........ NR AA 1,030
2,470 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue
Refunding, (Washington
County Service Project)
Series 1993,
5.150% 10/01/07........ NR AA 2,514
1,020 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Suffolk Project)
Series 1996A,
5.500% 04/01/17........ NR AA 1,019
1,000 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Sussex Service
Authority Project)
Series 1998,
4.625% 10/01/18........ NR AA 874
2,000 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Sussex Service
Authority Project)
Series 1998,
4.750% 10/01/25........ NR AA 1,717
5,345 Virginia State,
Transportation Board
Authority,
Transportation Contract
Revenue, (Northern
Virginia Transportation
District Project)
Series 1996A,
5.125% 05/15/21........ Aa1 AA 4,964
3,150 Virginia State,
Transportation Board
Authority,
Transportation Revenue
Refunding, (Route 28
Project) Series 1992,
6.000% 04/01/02........ Aa1 AA 3,219
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE> 131
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 3,000 Virginia State,
Transportation Board
Authority,
Transportation Revenue
Refunding, (U.S. Route
58 Corridor Program)
Series 1993A,
4.900% 05/15/03........ Aa1 AA $ 3,029
5,390 Virginia State,
Transportation Board
Authority,
Transportation Revenue
Refunding, (U.S. Route
58 Corridor Program)
Series 1993A,
5.500% 05/15/09........ Aa1 AA 5,527
2,105 Virginia State,
Transportation Board
Authority,
Transportation Revenue,
(U.S. Route 58 Corridor
Development Project)
Series 1993B,
5.100% 05/15/05........ Aa1 AA 2,145
2,350 Virginia, Biotechnology
Research Park
Authority, Lease
Revenue, (Biotechnology
Two Project) Series
1996,
5.750% 09/01/05........ Aa1 AA+ 2,466
2,475 Virginia, Chesapeake Bay
Bridge and Tunnel
Commission District,
Revenue, Series 1995,
(FGIC Insured),
5.875% 07/01/10........ Aaa AAA 2,613
2,000 Virginia, College
Building Authority,
Educational Facilities
Revenue Refunding,
(University of Richmond
Project) Series 1992,
5.625% 11/01/02........ Aa2 AA 2,022
2,000 Virginia, College
Building Authority,
Facilities Revenue,
(Equipment Leasing
Program) Series 1997,
5.000% 02/01/02........ Aa2 AA+ 2,014
2,300 Virginia, College
Building Authority,
Virginia Educational
Facilities Revenue,
(Public Higher
Education Financing
Program) Series 1999A,
5.375% 09/01/12........ Aa1 AA 2,345
5,000 Virginia, Southeastern
Public Service
Authority, Revenue
Refunding, Series
1993A, (MBIA Insured),
5.100% 07/01/08........ Aaa AAA 5,086
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 530 Washington County,
Virginia, Industrial
Development Authority,
Hospital Facility
Revenue Refunding,
(Johnson Memorial
Hospital Project)
Series 1995,
5.625% 07/01/02........ A2 NR $ 535
1,000 Washington County,
Virginia, Industrial
Development Authority,
Hospital Facility
Revenue Refunding,
(Johnston Memorial
Hospital Project)
Series 1995,
Prerefunded 07/01/05 @
102,
6.000% 07/01/14........ A2 NR 1,068
1,000 West Point, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Revenue,
(Chesapeake Corporation
Project) Series 1994A,
AMT,
6.375% 03/01/19........ Ba2 BB+ 936
--------
284,787
--------
DISTRICT OF COLUMBIA -- 0.9%
1,000 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue
Refunding, Series
1998B, AMT, (MBIA
Insured),
5.250% 10/01/10........ Aaa AAA $ 1,013
1,640 Metropolitan Washington,
District of Columbia,
Airport Authority,
Virginia General
Airport Revenue, Series
1997B, AMT, (FGIC
Insured),
5.500% 10/01/04........ Aaa AAA 1,687
--------
2,700
--------
MAINE -- 0.8%
2,500 Baileyville, Maine, PCR,
(Georgia-Pacific
Corporation Project)
Series 1998, 4.750%
06/01/05............... Baa2 NR 2,440
--------
TOTAL MUNICIPAL BONDS AND
NOTES
(Cost $285,089)........................ 289,927
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE> 132
NATIONS FUNDS
Nations Virginia Intermediate Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
-----------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 0.3%
(Cost $935)
935 Nations Municipal Reserves#............ $ 935
--------
TOTAL INVESTMENTS
(Cost $286,024*).............. 97.9% 290,862
--------
OTHER ASSETS AND LIABILITIES
(NET)......................... 2.1%
Receivable for investment securities
sold................................. $ 4,266
Interest receivable.................... 4,662
Payable for Fund shares redeemed....... (1,403)
Investment advisory fee payable........ (52)
Administration fee payable............. (49)
Shareholder servicing and distribution
fees payable......................... (17)
Distributions payable.................. (1,122)
Accrued Trustees'/Directors' fees and
expenses............................. (32)
Accrued expenses and other
liabilities.......................... (63)
--------
TOTAL OTHER ASSETS AND LIABILITIES
(NET)................................ 6,190
--------
NET ASSETS...................... 100.0% $297,052
========
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 139
Accumulated net realized loss on
investments sold..................... (2,311)
Net unrealized appreciation of
investments.......................... 4,838
Paid-in capital........................ 294,386
--------
NET ASSETS............................. $297,052
========
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------------------------------------------------------
<S> <C>
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($244,005,321 / 23,030,072 shares
outstanding)......................... $10.59
======
INVESTOR A SHARES:
Net asset value and redemption price
per share ($43,674,894 / 4,122,091
shares outstanding).................. $10.59
======
Maximum sales charge................... 3.25%
Maximum offering price per share....... $10.95
INVESTOR B SHARES:
Net asset value and offering price per
share** ($8,663,225 / 817,712 shares
outstanding)......................... $10.59
======
INVESTOR C SHARES:
Net asset value and offering price per
share** ($708,369 / 66,861 shares
outstanding)......................... $10.59
======
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $4,838 on
investment securities was comprised of gross appreciation of $7,039 and
gross depreciation of $2,201 for federal income tax purposes. At September
30, 2000, the aggregate cost of securities for federal income tax purposes
was $286,024.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
(a) Security purchased on a "when-issued" basis.
Nations Virginia Intermediate Municipal Bond Fund had the following industry
concentration greater than 10% at September 30, 2000 (as a percentage of net
assets):
General Obligations 27.48%
Water Revenue 16.50%
Transportation Revenue 11.14%
Resource Recovery Revenue 10.03%
SEE NOTES TO FINANCIAL STATEMENTS.
128
<PAGE> 133
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES
-- 97.3%
VIRGINIA -- 95.5%
$1,000 Arlington County,
Virginia, Industrial
Development Authority,
Facilities Revenue
Refunding, (Lee Gardens
Housing
Corporation-Housing
Mortgage - Woodbury Park
Apartments Project)
Series 1998A,
5.450% 01/01/29......... NR A $ 914
1,000 Chesapeake, Virginia,
Water and Sewer GO,
Series 1995A,
5.375% 12/01/20......... Aa3 AA 980
500 Covington-Allegheny
County, Virginia, IDR
Refunding, (Westvaco
Corporation Project)
Series 1994,
6.650% 09/01/18......... A3 BBB+ 525
500 Fairfax County, Virginia,
Industrial Development
Authority, Health Care
Revenue Refunding,
(Inova Health Systems
Project) Series 1996,
5.500% 08/15/10......... Aa2 AA 513
1,000 Fairfax County, Virginia,
Public Improvement GO,
Series 1999B,
5.500% 12/01/16......... Aaa AAA 1,011
1,000 Fairfax County, Virginia,
Water and Sewer Revenue
Refunding, Series 1993,
(AMBAC Insured),
5.500% 11/15/13......... Aaa AAA 1,012
1,000 Fairfax County, Virginia,
Water Authority,
Revenue, Unrefunded
Balance, Series 1992,
6.000% 04/01/22......... Aa1 AAA 1,037
1,000 Fairfax County, Virginia,
Water Authority, Water
Revenue, Series 2000,
5.625% 04/01/25......... Aa1 AAA 1,003
800 Giles County, Virginia,
Industrial Development
Authority, Exempt
Facilities Revenue,
(Hoechst Celanese
Corporation Project)
Series 1995, AMT,
5.950% 12/01/25......... Baa2 BBB 739
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$1,000 Giles County, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Facilities
Revenue, (Hoechst
Celanese Corporation
Project) Series 1992,
AMT,
6.625% 12/01/22......... Baa2 BBB $ 1,004
400 Halifax County, Virginia,
Industrial Development
Authority, Hospital
Revenue Refunding,
(Halifax Regional
Hospital, Inc. Project)
Series 1998,
5.250% 09/01/17......... NR A 361
500 Hanover County, Virginia,
Industrial Development
Authority, Revenue, (Bon
Secours Health Systems
Project) Series 1995,
(MBIA Insured),
5.500% 08/15/25......... Aaa AAA 482
500 Henrico County, Virginia,
Industrial Development
Authority, Public
Facilities Lease
Revenue, Series 1994,
7.000% 08/01/13......... Aa2 AA 559
500 Henry County, Virginia,
GO, Series 1994,
5.750% 07/15/07......... A2 A 525
700 James City and County,
Virginia, GO, Series
1995, (FGIC Insured,
State Aid Withholding),
5.250% 12/15/14......... Aaa AAA 700
765 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center Project)
Series 1995,
(FSA Insured),
5.600% 06/01/09......... Aaa AAA 795
500 Loudoun County, Virginia,
Industrial Development
Authority, Hospital
Revenue, (Loudoun
Hospital Center Project)
Series 1995,
(FSA Insured),
5.800% 06/01/20......... Aaa AAA 504
500 Peninsula Ports Authority,
Virginia, Health Care
Facilities Revenue
Refunding, (Riverside
Health System Project)
Series 1992A,
Prerefunded 07/01/02 @
102,
6.625% 07/01/18......... Aaa AA 527
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE> 134
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$ 500 Pittsylvania County,
Virginia, Public
Improvement GO, Series
1994,
5.850% 07/01/08......... A3 A $ 530
1,000 Prince William County,
Virginia, Industrial
Development Authority,
Lease Revenue, (ATCC
Project) Series 1996,
6.000% 02/01/14......... A2 NR 1,002
500 Prince William County,
Virginia, Park
Authority, Revenue,
Series 1994, Prerefunded
10/15/04 @ 102,
6.875% 10/15/16......... NR NR 549
500 Richmond, Virginia, GO
Refunding, Series 1995B,
(FGIC Insured, State Aid
Withholding),
5.000% 01/15/21......... Aaa AAA 458
800 Richmond, Virginia,
Metropolitan Expressway
Authority, Revenue
Refunding, Series 1992B,
(FGIC Insured),
6.250% 07/15/22......... Aaa AAA 824
1,390 Rivanna, Virginia, Water
and Sewer Authority,
Regional Water and Sewer
Systems, Revenue
Refunding, Series 1991,
6.450% 10/01/12......... Aa3 A+ 1,440
1,000 Staunton, Virginia,
Industrial Development
Authority, Educational
Facilities Revenue,
(Mary Baldwin College
Project) Series 1996,
6.600% 11/01/14......... NR NR 1,031
500 Upper Occoquan, Virginia,
Sewer Authority,
Regional Sewer Revenue,
Series 1995A, (MBIA
Insured),
5.000% 07/01/25......... Aaa AAA 450
500 Virginia Beach, Virginia,
Public Improvement GO
Refunding, Series 1994,
(State Aid Withholding),
5.750% 11/01/08......... Aa1 AA 527
1,000 Virginia Beach, Virginia,
Public Improvement GO,
Series 2000,
5.500% 03/01/18......... Aa1 AA 1,001
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MOODY'S S&P VALUE
(000) RATINGS (000)
----------------------------------------------------------------
<C> <S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
$1,000 Virginia Commonwealth,
Transportation Board,
Transportation Program
Revenue, (Oak Grove
Connector Project)
Series 1997A,
5.250% 05/15/22......... Aa1 AA $ 955
1,000 Virginia State, Housing
Development Authority,
Revenue, (Rental Housing
Project) Series 2000B,
AMT,
5.750% 08/01/13(a)...... Aa1 AA+ 1,014
640 Virginia State, Public
School Authority,
Revenue, Series 1994A,
(State Aid Withholding),
6.125% 08/01/11......... Aa1 AA 677
1,070 Virginia State,
Residential Authority,
Infrastructure Revenue,
Series 2000A, (MBIA
Insured),
5.500% 05/01/21......... Aaa AAA 1,059
750 Virginia State, Resource
Authority, Sewer Systems
Revenue, (Hopewell
Regional Wastewater
Facilities Project)
Series 1995A, AMT,
6.000% 10/01/15......... NR AA 773
500 Virginia State, Resource
Authority, Water and
Sewer Systems Revenue,
(Fauquier County Water
and Sanitation Project)
Series 1994C,
6.125% 05/01/14......... NR AA 522
1,800 West Point, Virginia,
Industrial Development
Authority, Solid Waste
Disposal Revenue,
(Chesapeake Corporation
Project) Series 1994A,
AMT,
6.375% 03/01/19......... Ba2 BB+ 1,683
-------
27,686
-------
MISSISSIPPI -- 1.8%
500 Warren County,
Mississippi,
Environmental
Improvement Revenue
Refunding,
(International Paper
Company Project) Series
2000A,
6.700% 08/01/18......... Baa1 BBB+ 518
-------
TOTAL MUNICIPAL
BONDS AND NOTES
(Cost $27,578).......................... 28,204
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
130
<PAGE> 135
NATIONS FUNDS
Nations Virginia Municipal Bond Fund
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
(000) (000)
--------------------------------------------------------------
<C> <S> <C>
INVESTMENT COMPANIES -- 1.6%
(Cost $471)
471 Nations Municipal Reserves#............ $ 471
-------
TOTAL INVESTMENTS
(Cost $28,049*)............... 98.9% 28,675
-------
OTHER ASSETS AND
LIABILITIES (NET)............. 1.1%
Receivable for investment securities
sold................................. $ 5
Interest receivable.................... 505
Payable for Fund shares redeemed....... (5)
Administration fee payable............. (5)
Shareholder servicing and distribution
fees payable......................... (9)
Distributions payable.................. (113)
Accrued Trustees'/Directors' fees and
expenses............................. (22)
Accrued expenses and other
liabilities.......................... (24)
-------
TOTAL OTHER ASSETS AND
LIABILITIES (NET).................... 332
-------
NET ASSETS...................... 100.0% $29,007
=======
NET ASSETS CONSIST OF:
Undistributed net investment income.... $ 68
Accumulated net realized loss on
investments sold..................... (942)
Net unrealized appreciation of
investments.......................... 626
Paid-in capital........................ 29,255
-------
NET ASSETS............................. $29,007
=======
PRIMARY A SHARES:
Net asset value, offering and
redemption price per share
($18,230,628 / 1,913,382 shares
outstanding)......................... $9.53
=====
INVESTOR A SHARES:
Net asset value and redemption price
per share ($467,904 / 49,156 shares
outstanding)......................... $9.52
=====
Maximum sales charge................... 4.75%
Maximum offering price per share....... $9.99
INVESTOR B SHARES:
Net asset value and offering price per
share** ($10,306,832 / 1,081,767
shares outstanding).................. $9.53
=====
INVESTOR C SHARES:
Net asset value and offering price per
share** ($2,915 / 306 shares
outstanding)......................... $9.53
=====
</TABLE>
---------------
* Federal Income Tax Information: Net unrealized appreciation of $626 on
investment securities was comprised of gross appreciation of $854 and gross
depreciation of $228 for federal income tax purposes. At September 30, 2000,
the aggregate cost of securities for federal income tax purposes was
$28,049.
** The redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
# Money market mutual fund registered under the Investment Company Act of
1940, as amended, and sub-advised by Banc of America Capital Management,
Inc.
Nations Virginia Municipal Bond Fund had the following industry concentration
greater than 10% at September 30, 2000 (as a percentage of net assets):
Water Revenue 25.66%
General Obligations 19.93%
Industrial Development Revenue/
Pollution Control Revenue 15.51%
SEE NOTES TO FINANCIAL STATEMENTS.
131
<PAGE> 136
NATIONS FUNDS
STATEMENT OF NET ASSETS (CONTINUED) SEPTEMBER 30, 2000 (UNAUDITED)
ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance Corporation
AMBAC-TCRS American Municipal Bond Assurance Corporation -
Transferable Custodial Receipts
AMT Alternative Minimum Tax
BD Board
CONNIE LEE College Construction Loan Insurance Association
FGIC Financial Guaranty Insurance Company
FGIC-TCRS Financial Guaranty Insurance Company -
Transferable Custodial Receipts
FHLMC COLL Federal Home Loan Mortgage Corporation
collateral
FHA Federal Housing Authority
FHA COLL Federal Housing Authority collateral
FNMA COLL Federal National Mortgage Association
collateral
FSA Financial Security Assurance
GO General Obligation
GNMA COLL Government National Mortgage Association
collateral
GTY-AGMT Guarantee Agreement
GTD STD LNS Guaranteed Student Loans
IBC Insured Bond Certificate
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MBIA-IBC Municipal Bond Insurance Association - Insured
Bond Certificate
NR Not Rated
PCR Pollution Control Revenue
PSF-GTD Permanent School Fund Guarantee
PUFG Permanent University Fund Guarantee
SCSDE South Carolina School District Enhancement
SCH BD GTY School Bond Guarantee
VA COLL Veterans Administration collateral
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
132
<PAGE> 137
(This page intentionally left blank)
133
<PAGE> 138
NATIONS FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
For the six months ended September 30, 2000
<TABLE>
SHORT-TERM INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL
INCOME BOND INCOME
----------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 2,978 $ 26,442 $ 21,115
-------------- -------------- --------------
EXPENSES:
Investment advisory fee..................................... 186 1,988 1,813
Administration fee.......................................... 136 1,094 798
Transfer agent fees......................................... 21 140 96
Custodian fees.............................................. 5 27 19
Legal and audit fees........................................ 34 39 38
Trustees' fees and expenses................................. 9 8 9
Interest expense............................................ --* 2 1
Registration and filing fees................................ 17 29 29
Printing expense............................................ 16 28 28
Other....................................................... 6 24 17
-------------- -------------- --------------
Subtotal................................................ 430 3,379 2,848
Shareholder servicing and distribution fees:
Investor A Shares......................................... 26 23 44
Investor B Shares......................................... 32 13 43
Investor C Shares......................................... 7 3 6
-------------- -------------- --------------
Total expenses.......................................... 495 3,418 2,941
Fees waived and expenses reimbursed by investment advisor,
administrator, and/or distributor......................... (181) (892) (677)
-------------- -------------- --------------
Net expenses............................................ 314 2,526 2,264
-------------- -------------- --------------
NET INVESTMENT INCOME/(LOSS)................................ 2,664 23,916 18,851
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... (198) 612 2,412
Net change in unrealized appreciation/(depreciation) of
investments............................................... 825 6,379 3,495
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on investments...... 627 6,991 5,907
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 3,291 $ 30,907 $ 24,758
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Kansas Municipal Income commenced operations on July 17, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
134
<PAGE> 139
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
FLORIDA GEORGIA MARYLAND
CALIFORNIA INTERMEDIATE FLORIDA INTERMEDIATE GEORGIA KANSAS INTERMEDIATE
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND INCOME(A) BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,129 $ 5,856 $ 3,946 $ 3,763 $ 730 $ 1,291 $ 5,123
-------------- -------------- -------------- -------------- -------------- -------------- --------------
455 433 349 280 66 128 387
201 238 154 154 29 57 213
30 36 23 23 4 10 31
6 8 5 5 2 2 6
33 35 34 35 32 21 35
9 9 9 8 9 4 9
1 1 --* --* --* --* --
1 1 1 1 --* 8 2
13 11 12 10 8 6 12
3 9 6 7 4 1 8
-------------- -------------- -------------- -------------- -------------- -------------- --------------
752 781 593 523 154 237 703
191 11 60 15 2 --* 20
22 21 60 34 50 --* 28
2 1 --* 4 --* -- 2
-------------- -------------- -------------- -------------- -------------- -------------- --------------
967 814 713 576 206 237 753
(233) (238) (174) (173) (74) (82) (219)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
734 576 539 403 132 155 534
-------------- -------------- -------------- -------------- -------------- -------------- --------------
4,395 5,280 3,407 3,360 598 1,136 4,589
-------------- -------------- -------------- -------------- -------------- -------------- --------------
577 310 154 123 38 16 250
2,737 1,007 1,030 1,197 314 673 1,540
-------------- -------------- -------------- -------------- -------------- -------------- --------------
3,314 1,317 1,184 1,320 352 689 1,790
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 7,709 $ 6,597 $ 4,591 $ 4,680 $ 950 $ 1,825 $ 6,379
============== ============== ============== ============== ============== ============== ==============
MARYLAND
MUNICIPAL
BOND
------------------------------------------------
<S> <C>
$ 970
--------------
89
39
6
2
33
9
--*
1
9
4
--------------
192
3
80
1
--------------
276
(85)
--------------
191
--------------
779
--------------
(14)
530
--------------
516
--------------
$ 1,295
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
135
<PAGE> 140
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
NORTH CAROLINA
INTERMEDIATE NORTH CAROLINA SOUTH CAROLINA
MUNICIPAL MUNICIPAL INTERMEDIATE
BOND BOND MUNICIPAL BOND
---------------------------------------------------
<S> <C> <C> <C>
(IN THOUSANDS)
INVESTMENT INCOME:
Interest.................................................... $ 5,057 $ 1,084 $ 6,391
-------------- -------------- --------------
EXPENSES:
Investment advisory fee..................................... 383 97 464
Administration fee.......................................... 211 43 255
Transfer agent fees......................................... 31 6 37
Custodian fees.............................................. 6 2 8
Legal and audit fees........................................ 35 33 35
Trustees' fees and expenses................................. 8 9 8
Interest expense............................................ -- --* 1
Registration and filing fees................................ 1 --* 1
Printing expense............................................ 11 8 12
Other....................................................... 8 4 9
-------------- -------------- --------------
Subtotal................................................ 694 202 830
Shareholder servicing and distribution fees:
Investor A Shares......................................... 13 2 20
Investor B Shares......................................... 26 94 35
Investor C Shares......................................... --* --* 12
-------------- -------------- --------------
Total expenses.......................................... 733 298 897
Fees waived and expenses reimbursed by investment advisor,
administrator, and/or distributor......................... (215) (86) (249)
-------------- -------------- --------------
Net expenses............................................ 518 212 648
-------------- -------------- --------------
NET INVESTMENT INCOME/(LOSS)................................ 4,539 872 5,743
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments..................... (817) (138) (278)
Net change in unrealized appreciation/(depreciation) of
investments............................................... 2,214 541 2,126
-------------- -------------- --------------
Net realized and unrealized gain/(loss) on investments...... 1,397 403 1,848
-------------- -------------- --------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 5,936 $ 1,275 $ 7,591
============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
136
<PAGE> 141
NATIONS FUNDS
STATEMENTS OF OPERATIONS (CONTINUED) (UNAUDITED)
<TABLE>
TENNESSEE TEXAS VIRGINIA
SOUTH CAROLINA INTERMEDIATE TENNESSEE INTERMEDIATE TEXAS INTERMEDIATE VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,011 $ 1,276 $ 294 $ 8,674 $ 390 $ 7,717 $ 803
-------------- -------------- -------------- -------------- -------------- -------------- --------------
90 95 26 623 34 582 69
40 53 11 343 15 320 31
7 8 2 54 2 46 4
2 2 1 11 5 11 2
33 33 28 36 30 36 32
9 9 9 8 9 9 9
--* -- --* 4 -- --* --
1 1 1 1 --* 1 --*
8 8 7 12 7 12 9
4 4 3 10 3 9 4
-------------- -------------- -------------- -------------- -------------- -------------- --------------
194 213 88 1,102 105 1,026 160
1 10 2 6 --* 57 1
43 8 19 10 27 44 52
--* --* 1 --* --* 4 --*
-------------- -------------- -------------- -------------- -------------- -------------- --------------
238 231 110 1,118 132 1,131 213
(85) (93) (56) (319) (64) (299) (77)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
153 138 54 799 68 832 136
-------------- -------------- -------------- -------------- -------------- -------------- --------------
858 1,138 240 7,875 322 6,885 667
-------------- -------------- -------------- -------------- -------------- -------------- --------------
6 (53) (41) (1,172) 32 (159) (231)
489 443 167 3,046 82 2,678 445
-------------- -------------- -------------- -------------- -------------- -------------- --------------
495 390 126 1,874 114 2,519 214
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 1,353 $ 1,528 $ 366 $ 9,749 $ 436 $ 9,404 $ 881
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
137
<PAGE> 142
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
SHORT-TERM INTERMEDIATE
MUNICIPAL INCOME MUNICIPAL BOND
------------------------------- -------------------------------
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>
(IN THOUSANDS)
Net investment income/(loss)......................... $ 2,664 $ 4,772 $ 23,916 $ 42,143
Net realized gain/(loss) on investments.............. (198) (95) 612 (2,370)
Net change in unrealized appreciation/(depreciation)
of investments..................................... 825 (1,712) 6,379 (43,336)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... 3,291 2,965 30,907 (3,563)
Distributions to shareholders from net investment
income:
Primary A Shares................................... (2,089) (3,188) (23,434) (41,086)
Investor A Shares.................................. (440) (1,171) (423) (888)
Investor B Shares.................................. (110) (343) (49) (111)
Investor C Shares.................................. (25) (71) (10) (59)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... -- -- -- (1,405)
Investor A Shares.................................. -- -- -- (27)
Investor B Shares.................................. -- -- -- (5)
Investor C Shares.................................. -- -- -- (3)
Net increase/(decrease) in net assets from Fund share
transactions....................................... (1,687) (4,060) 304,288 (18,416)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (1,060) (5,868) 311,279 (65,563)
NET ASSETS:
Beginning of period.................................. 125,453 131,321 873,020 938,583
-------------- -------------- -------------- --------------
End of period........................................ $ 124,393 $ 125,453 $ 1,184,299 $ 873,020
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 39 $ 39 $ 792 $ 792
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Represents financial information for the Pacific Horizon California
Municipal Bond Fund, which was reorganized into California Municipal Bond on
May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
138
<PAGE> 143
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
CALIFORNIA FLORIDA INTERMEDIATE
MUNICIPAL INCOME MUNICIPAL BOND MUNICIPAL BOND
------------------------------------------------ -------------------------------
---------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 PERIOD ENDED PERIOD ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00 5/14/99(A) (UNAUDITED) 3/31/00
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 18,851 $ 31,612 $ 4,395 $ 8,104 $ 1,950 $ 5,280 $ 11,245
2,412 (5,891) 577 (597) 1,093 310 (1,029)
3,495 (40,480) 2,737 (8,917) (3,924) 1,007 (9,513)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
24,758 (14,759) 7,709 (1,410) (881) 6,597 703
(17,752) (29,366) (635) (928) -- (4,989) (10,463)
(889) (1,715) (3,661) (7,051) (1,930) (207) (553)
(184) (460) (91) (119) (20) (83) (186)
(27) (75) (9) (6) -- (2) (42)
-- (710) (7) (47) -- -- --
-- (29) (50) (486) -- -- --
-- (15) (1) (10) -- -- --
-- (2) --* (1) -- -- --
317,207 (34,283) (3,129) (14,809) (9,699) (6,432) (21,123)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
323,113 (81,414) 126 (24,867) (12,530) (5,116) (31,664)
598,800 680,214 183,790 208,657 221,187 222,155 253,819
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 921,913 $ 598,800 $ 183,916 $ 183,790 $ 208,657 $ 217,039 $ 222,155
============== ============== ============== ============== ============== ============== ==============
$ 931 $ 931 $ 312 $ 313 $ 292 $ 14 $ 13
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
139
<PAGE> 144
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
FLORIDA GEORGIA INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND
------------------------------- -------------------------------
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>
(IN THOUSANDS)
Net investment income/(loss)......................... $ 3,407 $ 7,103 $ 3,360 $ 6,917
Net realized gain/(loss) on investments.............. 154 376 123 (1,090)
Net change in unrealized appreciation/(depreciation)
of investments..................................... 1,030 (7,575) 1,197 (6,288)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... 4,591 (96) 4,680 (461)
Distributions to shareholders from net investment
income:
Primary A Shares................................... (2,015) (3,838) (2,941) (5,865)
Investor A Shares.................................. (1,148) (2,706) (277) (736)
Investor B Shares.................................. (244) (557) (129) (286)
Investor C Shares.................................. --* (1) (14) (31)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... (32) -- -- (166)
Investor A Shares.................................. (19) -- -- (20)
Investor B Shares.................................. (5) -- -- (10)
Investor C Shares.................................. --* -- -- (1)
Net increase/(decrease) in net assets from Fund share
transactions....................................... (5,250) (9,231) (4,439) (10,542)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (4,122) (16,429) (3,120) (18,118)
NET ASSETS:
Beginning of period.................................. 141,599 158,028 142,768 160,886
-------------- -------------- -------------- --------------
End of period........................................ $ 137,477 $ 141,599 $ 139,648 $ 142,768
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 139 $ 139 $ 96 $ 96
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
(a) Kansas Municipal Income commenced operations on July 17, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
140
<PAGE> 145
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
KANSAS
GEORGIA MUNICIPAL MARYLAND INTERMEDIATE MARYLAND
MUNICIPAL BOND INCOME MUNICIPAL BOND MUNICIPAL BOND
------------- ------------------------------- -------------------------------
---------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00(A) 9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) (UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 598 $ 1,016 $ 1,136 $ 4,589 $ 9,187 $ 779 $ 1,416
38 (740) 16 250 (1,697) (14) (706)
314 (648) 673 1,540 (7,384) 530 (963)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
950 (372) 1,825 6,379 106 1,295 (253)
(356) (503) (1,127) (4,097) (8,207) (424) (774)
(43) (97) (8) (380) (738) (44) (74)
(198) (414) (1) (105) (224) (307) (562)
(1) --* -- (6) (17) (4) (6)
-- -- -- -- (83) -- (9)
-- -- -- -- (8) -- (1)
-- -- -- -- (3) -- (8)
-- -- -- -- (1) -- --*
1,215 2,967 121,677 2,948 (6,228) (164) 2,392
-------------- -------------- -------------- -------------- -------------- -------------- --------------
1,567 1,581 122,366 4,739 (15,403) 352 705
25,262 23,681 -- 191,669 207,072 35,616 34,911
-------------- -------------- -------------- -------------- -------------- -------------- --------------
$ 26,829 $ 25,262 $ 122,366 $ 196,408 $ 191,669 $ 35,968 $ 35,616
============== ============== ============== ============== ============== ============== ==============
$ 49 $ 49 $ -- $ -- $ -- $ 13 $ 13
============== ============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
141
<PAGE> 146
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE NORTH CAROLINA
MUNICIPAL BOND MUNICIPAL BOND
--------------------------------- --------------------------------
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>
(IN THOUSANDS)
Net investment income/(loss)......................... $ 4,539 $ 9,220 $ 872 $ 1,750
Net realized gain/(loss) on investments.............. (817) (948) (138) (723)
Net change in unrealized appreciation/(depreciation)
of investments..................................... 2,214 (8,403) 541 (1,801)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... 5,936 (131) 1,275 (774)
Distributions to shareholders from net investment
income:
Primary A Shares................................... (4,210) (8,560) (459) (829)
Investor A Shares.................................. (229) (434) (41) (52)
Investor B Shares.................................. (97) (222) (371) (868)
Investor C Shares.................................. (2) (3) (1) (1)
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... -- (288) -- --
Investor A Shares.................................. -- (15) -- --
Investor B Shares.................................. -- (10) -- --
Investor C Shares.................................. -- --* -- --
Net increase/(decrease) in net assets from Fund share
transactions....................................... 2,004 (9,980) (940) 120
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ 3,402 (19,643) (537) (2,404)
NET ASSETS:
Beginning of period.................................. 190,634 210,277 39,576 41,980
-------------- -------------- -------------- --------------
End of period........................................ $ 194,036 $ 190,634 $ 39,039 $ 39,576
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 290 $ 291 $ 21 $ 21
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
142
<PAGE> 147
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
SOUTH CAROLINA INTERMEDIATE SOUTH CAROLINA TENNESSEE INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
------------------------------- ------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,743 $ 12,258 $ 858 $ 1,386 $ 1,138 $ 2,355
(278) 101 6 (567) (53) (368)
2,126 (12,805) 489 (927) 443 (2,446)
-------------- -------------- -------------- -------------- -------------- --------------
7,591 (446) 1,353 (108) 1,528 (459)
(5,176) (10,924) (661) (957) (925) (1,877)
(375) (886) (23) (50) (183) (375)
(143) (329) (174) (377) (31) (102)
(50) (118) (1) (3) --* (1)
-- (331) -- -- -- (40)
-- (27) -- -- -- (8)
-- (12) -- -- -- (3)
-- (4) -- -- -- --*
412 (24,176) (3,543) 15,365 40 (4,911)
-------------- -------------- -------------- -------------- -------------- --------------
2,259 (37,253) (3,049) 13,870 429 (7,776)
232,315 269,568 38,705 24,835 47,332 55,108
-------------- -------------- -------------- -------------- -------------- --------------
$ 234,574 $ 232,315 $ 35,656 $ 38,705 $ 47,761 $ 47,332
============== ============== ============== ============== ============== ==============
$ 212 $ 213 $ 13 $ 14 $ 3 $ 3
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
143
<PAGE> 148
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
TENNESSEE TEXAS INTERMEDIATE
MUNICIPAL BOND MUNICIPAL BOND
------------------------------- -------------------------------
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>
(IN THOUSANDS)
Net investment income/(loss)......................... $ 240 $ 470 $ 7,875 $ 17,833
Net realized gain/(loss) on investments.............. (41) (63) (1,172) (3,353)
Net change in unrealized appreciation/(depreciation)
of investments..................................... 167 (607) 3,046 (14,956)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets resulting from
operations......................................... 366 (200) 9,749 (476)
Distributions to shareholders from net investment
income:
Primary A Shares................................... (123) (262) (7,727) (17,447)
Investor A Shares.................................. (36) (37) (107) (304)
Investor B Shares.................................. (78) (168) (41) (82)
Investor C Shares.................................. (3) (4) --* --*
Distributions to shareholders from net realized gains
on investments:
Primary A Shares................................... -- -- -- (71)
Investor A Shares.................................. -- -- -- (1)
Investor B Shares.................................. -- -- -- (1)
Investor C Shares.................................. -- -- -- --*
Net increase/(decrease) in net assets from Fund share
transactions....................................... (834) 254 (37,697) (47,692)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets................ (708) (417) (35,823) (66,074)
NET ASSETS:
Beginning of period.................................. 10,615 11,032 334,406 400,480
-------------- -------------- -------------- --------------
End of period........................................ $ 9,907 $ 10,615 $ 298,583 $ 334,406
============== ============== ============== ==============
Undistributed net investment income/(distributions in
excess of net investment income) at end of
period............................................. $ 22 $ 22 $ 238 $ 238
============== ============== ============== ==============
</TABLE>
---------------
* Amount represents less than $500.
SEE NOTES TO FINANCIAL STATEMENTS.
144
<PAGE> 149
NATIONS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
TEXAS VIRGINIA INTERMEDIATE VIRGINIA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
------------------------------- ------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
9/30/00 YEAR ENDED 9/30/00 YEAR ENDED 9/30/00 YEAR ENDED
(UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00 (UNAUDITED) 3/31/00
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 322 $ 681 $ 6,885 $ 13,102 $ 667 $ 1,221
32 (244) (159) (2,152) (231) (171)
82 (636) 2,678 (10,427) 445 (1,345)
-------------- -------------- -------------- -------------- -------------- --------------
436 (199) 9,404 523 881 (295)
(199) (411) (5,665) (10,494) (436) (710)
(8) (17) (1,037) (2,216) (13) (36)
(113) (251) (168) (357) (219) (475)
(2) (3) (14) (31) --* --*
-- -- -- (22) -- --
-- -- -- (5) -- --
-- -- -- (1) -- --
-- -- -- --* -- --
(722) (1,971) 9,339 2,368 1,215 1,636
-------------- -------------- -------------- -------------- -------------- --------------
(608) (2,852) 11,859 (10,235) 1,428 120
13,854 16,706 285,193 295,428 27,579 27,459
-------------- -------------- -------------- -------------- -------------- --------------
$ 13,246 $ 13,854 $ 297,052 $ 285,193 $ 29,007 $ 27,579
============== ============== ============== ============== ============== ==============
$ 47 $ 47 $ 139 $ 139 $ 68 $ 69
============== ============== ============== ============== ============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
145
<PAGE> 150
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INCOME
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 2,395 $ 23,840 6,609 $ 65,869
Issued as reinvestment of dividends....................... 2 19 2 27
Redeemed.................................................. (2,167) (21,569) (4,936) (49,439)
------ -------- ------ --------
Net increase/(decrease)................................... 230 $ 2,290 1,675 $ 16,457
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 95 $ 942 2,439 $ 24,297
Issued as reinvestment of dividends....................... 31 305 70 804
Redeemed.................................................. (358) (3,557) (3,799) (37,957)
------ -------- ------ --------
Net increase/(decrease)................................... (232) $ (2,310) (1,290) $(12,856)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... -- $ -- 2 $ --
Issued as reinvestment of dividends....................... 10 101 27 284
Redeemed.................................................. (134) (1,335) (701) (7,019)
------ -------- ------ --------
Net increase/(decrease)................................... (124) $ (1,234) (672) $ (6,735)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 96 $ 950 55 $ 541
Issued as reinvestment of dividends....................... 2 24 6 68
Redeemed.................................................. (142) (1,407) (154) (1,535)
------ -------- ------ --------
Net increase/(decrease)................................... (44) $ (433) (93) $ (926)
====== ======== ====== ========
Total net increase/(decrease)............................. (170) $ (1,687) (380) $ (4,060)
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
146
<PAGE> 151
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
-------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 9,119 $ 89,255 23,175 $ 228,548
Issued in exchange for:
Assets of Boatmen's Trust Company Intermediate
Tax-Exempt
Bond Fund (Note 8).................................... 20,654 203,437 -- --
Assets of Bank IV Kansas U.S. Tax Exempt Bond Fund
(Note 8).............................................. 2,481 24,435 -- --
Assets of BCA High Grade Tax Exempt Bond Fund
(Note 8).............................................. 12,824 126,314 -- --
Issued as reinvestment of dividends....................... 43 423 91 973
Redeemed.................................................. (14,021) (137,008) (25,494) (252,077)
------- --------- ------- ---------
Net increase/(decrease)................................... 31,100 $ 306,856 (2,228) $ (22,556)
======= ========= ======= =========
INVESTOR A SHARES:
Sold...................................................... 317 $ 3,108 2,325 $ 23,295
Issued as reinvestment of dividends....................... 19 181 37 400
Redeemed.................................................. (575) (5,636) (1,907) (19,018)
------- --------- ------- ---------
Net increase/(decrease)................................... (239) $ (2,347) 455 $ 4,677
======= ========= ======= =========
INVESTOR B SHARES:
Sold...................................................... --* $ -- 82 $ 820
Issued as reinvestment of dividends....................... 2 22 6 68
Redeemed.................................................. (23) (225) (57) (558)
------- --------- ------- ---------
Net increase/(decrease)................................... (21) $ (203) 31 $ 330
======= ========= ======= =========
INVESTOR C SHARES:
Sold...................................................... --* $ --* 65 $ 664
Issued as reinvestment of dividends....................... 1 9 5 59
Redeemed.................................................. (3) (27) (162) (1,590)
------- --------- ------- ---------
Net increase/(decrease)................................... (2) $ (18) (92) $ (867)
======= ========= ======= =========
Total net increase/(decrease)............................. 30,838 $ 304,288 (1,834) $ (18,416)
======= ========= ======= =========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
147
<PAGE> 152
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL INCOME
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ --------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 6,485 $ 69,226 10,052 $ 109,003
Issued in exchange for assets of Boatmen's Trust Company
Tax Exempt Bond Fund (Note 8)........................... 30,910 332,899 -- --
Issued as reinvestment of dividends....................... 16 163 35 410
Redeemed.................................................. (7,771) (82,233) (13,758) (148,807)
------ -------- ------- ---------
Net increase/(decrease)................................... 29,640 $320,055 (3,671) $ (39,394)
====== ======== ======= =========
INVESTOR A SHARES:
Sold...................................................... 2,111 $ 22,543 5,826 $ 63,453
Issued in exchange for A Shares of Pacific Horizon
National Bond Fund (Note 8)............................. -- -- 1,684 19,123
Issued as reinvestment of dividends....................... 57 601 98 1,136
Redeemed.................................................. (2,377) (25,502) (6,738) (73,931)
------ -------- ------- ---------
Net increase/(decrease)................................... (209) $ (2,358) 870 $ 9,781
====== ======== ======= =========
INVESTOR B SHARES:
Sold...................................................... 26 $ 268 75 $ 820
Issued as reinvestment of dividends....................... 10 103 24 278
Redeemed.................................................. (65) (695) (479) (5,194)
------ -------- ------- ---------
Net increase/(decrease)................................... (29) $ (324) (380) $ (4,096)
====== ======== ======= =========
INVESTOR C SHARES:
Sold...................................................... --* $ 6 41 $ 453
Issued as reinvestment of dividends....................... 2 25 6 70
Redeemed.................................................. (19) (197) (101) (1,097)
------ -------- ------- ---------
Net increase/(decrease)................................... (17) $ (166) (54) $ (574)
====== ======== ======= =========
Total net increase/(decrease)............................. 29,385 $317,207 (3,235) $ (34,283)
====== ======== ======= =========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
148
<PAGE> 153
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
CALIFORNIA MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 PERIOD ENDED PERIOD ENDED
(UNAUDITED) MARCH 31, 2000 MAY 14, 1999(A)
------------------ ------------------ ------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:+
Sold........................................ 1,420 $ 10,153 3,709 $ 27,884 -- $ --
Issued as reinvestment of dividends......... 9 69 24 161 -- --
Redeemed.................................... (322) (2,314) (697) (6,294) -- --
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 1,107 $ 7,908 3,036 $ 21,751 -- $ --
====== ======== ====== ======== ====== ========
INVESTOR A SHARES:
Sold........................................ 340 $ 2,466 1,406 $ 11,864 904 $ 6,861
Issued as reinvestment of dividends......... 305 2,208 629 4,499 130 989
Redeemed.................................... (2,315) (16,531) (7,400) (54,760) (2,361) (17,923)
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... (1,670) $(11,857) (5,365) $(38,397) (1,327) $(10,073)
====== ======== ====== ======== ====== ========
INVESTOR B SHARES:
Sold........................................ 118 $ 850 402 $ 2,873 98 $ 744
Issued as reinvestment of dividends......... 9 64 12 82 2 12
Redeemed.................................... (47) (339) (194) (1,382) (50) (381)
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 80 $ 575 220 $ 1,573 50 $ 375
====== ======== ====== ======== ====== ========
INVESTOR C SHARES:+
Sold........................................ 34 $ 242 36 $ 260 -- $ --
Issued as reinvestment of dividends......... 1 6 1 6 -- --
Redeemed.................................... --* (3) --* (2) -- --
------ -------- ------ -------- ------ --------
Net increase/(decrease)..................... 35 $ 245 37 $ 264 -- $ --
====== ======== ====== ======== ====== ========
Total net increase/(decrease)............... (448) $ (3,129) (2,072) $(14,809) (1,277) $ (9,699)
====== ======== ====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
+ California Municipal Bond Primary A and Investor C Shares commenced
operations on May 21, 1999.
(a) Represents financial information for the Pacific Horizon California
Municipal Bond Fund, which was reorganized into California Municipal Bond
on May 21, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
149
<PAGE> 154
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,860 $ 19,275 4,567 $ 47,567
Issued as reinvestment of dividends....................... 2 23 5 62
Redeemed.................................................. (2,306) (23,783) (6,217) (64,778)
------ -------- ------ --------
Net increase/(decrease)................................... (444) $ (4,485) (1,645) $(17,149)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 100 $ 1,032 564 $ 5,837
Issued as reinvestment of dividends....................... 16 162 37 418
Redeemed.................................................. (253) (2,615) (847) (8,755)
------ -------- ------ --------
Net increase/(decrease)................................... (137) $ (1,421) (246) $ (2,500)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 8 $ 76 43 $ 450
Issued as reinvestment of dividends....................... 5 56 11 124
Redeemed.................................................. (64) (661) (77) (812)
------ -------- ------ --------
Net increase/(decrease)................................... (51) $ (529) (23) $ (238)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 1 $ 6 24 $ 250
Issued as reinvestment of dividends....................... --* 3 2 22
Redeemed.................................................. (1) (6) (146) (1,508)
------ -------- ------ --------
Net increase/(decrease)................................... --* $ 3 (120) $ (1,236)
====== ======== ====== ========
Total net increase/(decrease)............................. (632) $ (6,432) (2,034) $(21,123)
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
150
<PAGE> 155
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
FLORIDA MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,048 $ 9,921 3,531 $ 33,504
Issued as reinvestment of dividends....................... 6 52 13 136
Redeemed.................................................. (956) (9,068) (2,949) (28,008)
------ ------- ------ --------
Net increase/(decrease)................................... 98 $ 905 595 $ 5,632
====== ======= ====== ========
INVESTOR A SHARES:
Sold...................................................... 65 $ 617 424 $ 3,903
Issued as reinvestment of dividends....................... 98 946 212 2,187
Redeemed.................................................. (603) (5,776) (1,994) (19,023)
------ ------- ------ --------
Net increase/(decrease)................................... (440) $(4,213) (1,358) $(12,933)
====== ======= ====== ========
INVESTOR B SHARES:
Sold...................................................... 19 $ 183 192 $ 1,831
Issued as reinvestment of dividends....................... 12 119 26 268
Redeemed.................................................. (234) (2,244) (420) (4,030)
------ ------- ------ --------
Net increase/(decrease)................................... (203) $(1,942) (202) $ (1,931)
====== ======= ====== ========
INVESTOR C SHARES:
Sold...................................................... 1 $ 10 --* $ --*
Issued as reinvestment of dividends....................... --* --* --* 1
Redeemed.................................................. (1) (10) -- --
------ ------- ------ --------
Net increase/(decrease)................................... --* $ -- -- $ 1
====== ======= ====== ========
Total net increase/(decrease)............................. (545) $(5,250) (965) $ (9,231)
====== ======= ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
151
<PAGE> 156
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,147 $ 11,941 3,074 $ 32,266
Issued as reinvestment of dividends....................... 1 5 2 20
Redeemed.................................................. (1,387) (14,404) (3,437) (36,098)
------ -------- ------ --------
Net increase/(decrease)................................... (239) $ (2,458) (361) $ (3,812)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 34 $ 357 153 $ 1,558
Issued as reinvestment of dividends....................... 22 231 57 644
Redeemed.................................................. (217) (2,251) (737) (7,745)
------ -------- ------ --------
Net increase/(decrease)................................... (161) $ (1,663) (527) $ (5,543)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 8 $ 85 40 $ 420
Issued as reinvestment of dividends....................... 4 46 10 117
Redeemed.................................................. (40) (417) (156) (1,645)
------ -------- ------ --------
Net increase/(decrease)................................... (28) $ (286) (106) $ (1,108)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ -- 2 $ 19
Issued as reinvestment of dividends....................... 1 12 2 29
Redeemed.................................................. (4) (44) (12) (127)
------ -------- ------ --------
Net increase/(decrease)................................... (3) $ (32) (8) $ (79)
====== ======== ====== ========
Total net increase/(decrease)............................. (431) $ (4,439) (1,002) $(10,542)
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
152
<PAGE> 157
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
GEORGIA MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -----------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 330 $ 3,088 1,360 $12,830
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (122) (1,155) (950) (8,918)
---- ------- ----- -------
Net increase/(decrease)................................... 208 $ 1,933 410 $ 3,912
==== ======= ===== =======
INVESTOR A SHARES:
Sold...................................................... 10 $ 93 7 $ 57
Issued as reinvestment of dividends....................... 5 42 9 95
Redeemed.................................................. (25) (236) (80) (773)
---- ------- ----- -------
Net increase/(decrease)................................... (10) $ (101) (64) $ (621)
==== ======= ===== =======
INVESTOR B SHARES:
Sold...................................................... 19 $ 178 158 $ 1,533
Issued as reinvestment of dividends....................... 11 108 23 240
Redeemed.................................................. (94) (898) (224) (2,153)
---- ------- ----- -------
Net increase/(decrease)................................... (64) $ (612) (43) $ (380)
==== ======= ===== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* 6 $ 58
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (1) (5) --* (2)
---- ------- ----- -------
Net increase/(decrease)................................... (1) $ (5) 6 $ 56
==== ======= ===== =======
Total net increase/(decrease)............................. 133 $ 1,215 309 $ 2,967
==== ======= ===== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
153
<PAGE> 158
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
KANSAS MUNICIPAL INCOME
PERIOD ENDED
SEPTEMBER 30, 2000
(UNAUDITED)
------------------------
SHARES DOLLARS
------------------------
<S> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:+
Sold...................................................... 12,651 $125,903
Issued as reinvestment of dividends....................... 2 15
Redeemed.................................................. (577) (5,810)
------ --------
Net increase/(decrease)................................... 12,076 $120,108
====== ========
INVESTOR A SHARES:+
Sold...................................................... 160 $ 1,607
Issued as reinvestment of dividends....................... --* 2
Redeemed.................................................. (29) (290)
------ --------
Net increase/(decrease)................................... 131 $ 1,319
====== ========
INVESTOR B SHARES:+
Sold...................................................... 25 $ 250
Issued as reinvestment of dividends....................... -- --
Redeemed.................................................. -- --
------ --------
Net increase/(decrease)................................... 25 $ 250
====== ========
Total net increase/(decrease)............................. 12,232 $121,677
====== ========
</TABLE>
---------------
+ Kansas Municipal Income Primary A, Investor A and Investor B Shares commenced
operations on July 17, 2000, August 14, 2000 and August 29, 2000,
respectively.
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
154
<PAGE> 159
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,519 $ 16,065 3,481 $ 37,328
Issued as reinvestment of dividends....................... 5 52 10 117
Redeemed.................................................. (1,239) (13,095) (4,062) (43,475)
------ -------- ------ --------
Net increase/(decrease)................................... 285 $ 3,022 (571) $ (6,030)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 140 $ 1,467 268 $ 2,813
Issued as reinvestment of dividends....................... 26 276 46 538
Redeemed.................................................. (134) (1,408) (309) (3,297)
------ -------- ------ --------
Net increase/(decrease)................................... 32 $ 335 5 $ 54
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 8 $ 89 70 $ 745
Issued as reinvestment of dividends....................... 8 85 16 184
Redeemed.................................................. (48) (511) (92) (978)
------ -------- ------ --------
Net increase/(decrease)................................... (32) $ (337) (6) $ (49)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ 3
Issued as reinvestment of dividends....................... 1 5 1 14
Redeemed.................................................. (7) (77) (20) (220)
------ -------- ------ --------
Net increase/(decrease)................................... (6) $ (72) (19) $ (203)
====== ======== ====== ========
Total net increase/(decrease)............................. 279 $ 2,948 (591) $ (6,228)
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
155
<PAGE> 160
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
MARYLAND MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -----------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 201 $ 1,924 660 $ 6,376
Issued as reinvestment of dividends....................... --* 1 --* 3
Redeemed.................................................. (208) (1,980) (520) (4,995)
---- ------- ---- -------
Net increase/(decrease)................................... (7) $ (55) 140 $ 1,384
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 32 $ 302 24 $ 225
Issued as reinvestment of dividends....................... 4 34 6 59
Redeemed.................................................. (17) (159) (18) (171)
---- ------- ---- -------
Net increase/(decrease)................................... 19 $ 177 12 $ 113
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... 88 $ 844 318 $ 3,045
Issued as reinvestment of dividends....................... 24 223 41 424
Redeemed.................................................. (141) (1,356) (291) (2,790)
---- ------- ---- -------
Net increase/(decrease)................................... (29) $ (289) 68 $ 679
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* 22 $ 210
Issued as reinvestment of dividends....................... --* 3 --* 6
Redeemed.................................................. -- --* -- --
---- ------- ---- -------
Net increase/(decrease)................................... --* $ 3 22 $ 216
==== ======= ==== =======
Total net increase/(decrease)............................. (17) $ (164) 242 $ 2,392
==== ======= ==== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
156
<PAGE> 161
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,791 $ 18,195 4,170 $ 42,798
Issued as reinvestment of dividends....................... 8 87 27 295
Redeemed.................................................. (1,603) (16,288) (5,060) (51,949)
------ -------- ------ --------
Net increase/(decrease)................................... 196 $ 1,994 (863) $ (8,856)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 134 $ 1,361 102 $ 1,032
Issued as reinvestment of dividends....................... 16 165 32 359
Redeemed.................................................. (132) (1,347) (129) (1,337)
------ -------- ------ --------
Net increase/(decrease)................................... 18 $ 179 5 $ 54
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 2 $ 18 10 $ 88
Issued as reinvestment of dividends....................... 7 74 15 172
Redeemed.................................................. (25) (252) (138) (1,421)
------ -------- ------ --------
Net increase/(decrease)................................... (16) $ (160) (113) $ (1,161)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* 2 --* 3
Redeemed.................................................. 1 (11) (2) (20)
------ -------- ------ --------
Net increase/(decrease)................................... 1 $ (9) (2) $ (17)
====== ======== ====== ========
Total net increase/(decrease)............................. 199 $ 2,004 (973) $ (9,980)
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
157
<PAGE> 162
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 333 $ 3,144 1,951 $ 18,576
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (236) (2,237) (1,699) (16,015)
---- ------- ------ --------
Net increase/(decrease)................................... 97 $ 907 252 $ 2,561
==== ======= ====== ========
INVESTOR A SHARES:
Sold...................................................... 79 $ 758 96 $ 907
Issued as reinvestment of dividends....................... 3 29 3 37
Redeemed.................................................. (2) (21) (41) (392)
---- ------- ------ --------
Net increase/(decrease)................................... 80 $ 766 58 $ 552
==== ======= ====== ========
INVESTOR B SHARES:
Sold...................................................... 13 $ 130 209 $ 1,979
Issued as reinvestment of dividends....................... 29 279 63 655
Redeemed.................................................. (319) (3,023) (596) (5,677)
---- ------- ------ --------
Net increase/(decrease)................................... (277) $(2,614) (324) $ (3,043)
==== ======= ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* 5 $ 50
Issued as reinvestment of dividends....................... --* 1 --* --*
Redeemed.................................................. -- -- --* --*
---- ------- ------ --------
Net increase/(decrease)................................... --* $ 1 5 $ 50
==== ======= ====== ========
Total net increase/(decrease)............................. (100) $ (940) (9) $ 120
==== ======= ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
158
<PAGE> 163
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,882 $ 19,303 5,584 $ 57,593
Issued as reinvestment of dividends....................... 4 40 12 121
Redeemed.................................................. (1,493) (15,282) (7,813) (80,572)
------ -------- ------ --------
Net increase/(decrease)................................... 393 $ 4,061 (2,217) $(22,858)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 91 $ 940 380 $ 4,012
Issued as reinvestment of dividends....................... 14 140 36 394
Redeemed.................................................. (294) (2,995) (457) (4,743)
------ -------- ------ --------
Net increase/(decrease)................................... (189) $ (1,915) (41) $ (337)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 2 $ 24 101 $ 1,047
Issued as reinvestment of dividends....................... 8 83 19 209
Redeemed.................................................. (48) (487) (200) (2,051)
------ -------- ------ --------
Net increase/(decrease)................................... (38) $ (380) (80) $ (795)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 2 $ 18 88 $ 910
Issued as reinvestment of dividends....................... 4 42 8 94
Redeemed.................................................. (136) (1,414) (115) (1,190)
------ -------- ------ --------
Net increase/(decrease)................................... (130) $ (1,354) (19) $ (186)
====== ======== ====== ========
Total net increase/(decrease)............................. 36 $ 412 (2,357) $(24,176)
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
159
<PAGE> 164
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
SOUTH CAROLINA MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
-------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 358 $ 3,411 4,537 $ 43,900
Issued as reinvestment of dividends....................... -- -- -- --
Redeemed.................................................. (665) (6,419) (2,827) (27,069)
---- ------- ------ --------
Net increase/(decrease)................................... (307) $(3,008) 1,710 $ 16,831
==== ======= ====== ========
INVESTOR A SHARES:
Sold...................................................... 24 $ 230 52 $ 502
Issued as reinvestment of dividends....................... 2 18 4 44
Redeemed.................................................. (15) (143) (66) (633)
---- ------- ------ --------
Net increase/(decrease)................................... 11 $ 105 (10) $ (87)
==== ======= ====== ========
INVESTOR B SHARES:
Sold...................................................... 24 $ 235 28 $ 254
Issued as reinvestment of dividends....................... 12 117 24 258
Redeemed.................................................. (102) (993) (191) (1,860)
---- ------- ------ --------
Net increase/(decrease)................................... (66) $ (641) (139) $ (1,348)
==== ======= ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* 1 --* 2
Redeemed.................................................. -- -- (3) (33)
---- ------- ------ --------
Net increase/(decrease)................................... --* $ 1 (3) $ (31)
==== ======= ====== ========
Total net increase/(decrease)............................. (362) $(3,543) 1,558 $ 15,365
==== ======= ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
160
<PAGE> 165
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -----------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 270 $ 2,680 654 $ 6,566
Issued as reinvestment of dividends....................... 5 53 9 104
Redeemed.................................................. (278) (2,774) (952) (9,529)
---- ------- ---- -------
Net increase/(decrease)................................... (3) $ (41) (289) $(2,859)
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 46 $ 461 50 $ 485
Issued as reinvestment of dividends....................... 15 152 28 306
Redeemed.................................................. (26) (261) (174) (1,746)
---- ------- ---- -------
Net increase/(decrease)................................... 35 $ 352 (96) $ (955)
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... --* $ (4) 9 $ 87
Issued as reinvestment of dividends....................... 2 22 7 81
Redeemed.................................................. (29) (289) (124) (1,235)
---- ------- ---- -------
Net increase/(decrease)................................... (27) $ (271) (108) $(1,067)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. -- --* (3) (30)
---- ------- ---- -------
Net increase/(decrease)................................... --* $ --* (3) $ (30)
==== ======= ==== =======
Total net increase/(decrease)............................. 5 $ 40 (496) $(4,911)
==== ======= ==== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
161
<PAGE> 166
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TENNESSEE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -----------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 51 $ 489 289 $ 2,781
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (131) (1,262) (320) (3,071)
---- ------- ---- -------
Net increase/(decrease)................................... (80) $ (773) (31) $ (290)
==== ======= ==== =======
INVESTOR A SHARES:
Sold...................................................... 65 $ 632 93 $ 902
Issued as reinvestment of dividends....................... 1 11 2 19
Redeemed.................................................. (35) (337) (2) (18)
---- ------- ---- -------
Net increase/(decrease)................................... 31 $ 306 93 $ 903
==== ======= ==== =======
INVESTOR B SHARES:
Sold...................................................... (1) $ (9) 13 $ 121
Issued as reinvestment of dividends....................... 6 62 13 134
Redeemed.................................................. (44) (427) (71) (693)
---- ------- ---- -------
Net increase/(decrease)................................... (39) $ (374) (45) $ (438)
==== ======= ==== =======
INVESTOR C SHARES:
Sold...................................................... 1 $ 4 8 $ 75
Issued as reinvestment of dividends....................... --* 3 --* 4
Redeemed.................................................. -- --* -- --*
---- ------- ---- -------
Net increase/(decrease)................................... 1 $ 7 8 $ 79
==== ======= ==== =======
Total net increase/(decrease)............................. (87) $ (834) 25 $ 254
==== ======= ==== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
162
<PAGE> 167
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 1,555 $ 15,540 4,248 $ 43,022
Issued as reinvestment of dividends....................... 1 9 3 19
Redeemed.................................................. (5,081) (50,680) (8,955) (90,193)
------ -------- ------ --------
Net increase/(decrease)................................... (3,525) $(35,131) (4,704) $(47,152)
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 281 $ 2,822 156 $ 1,583
Issued as reinvestment of dividends....................... 3 33 8 82
Redeemed.................................................. (544) (5,452) (215) (2,175)
------ -------- ------ --------
Net increase/(decrease)................................... (260) $ (2,597) (51) $ (510)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... 1 $ 8 5 $ 52
Issued as reinvestment of dividends....................... 3 30 5 60
Redeemed.................................................. (1) (7) (14) (142)
------ -------- ------ --------
Net increase/(decrease)................................... 3 $ 31 (4) $ (30)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. -- -- --* --*
------ -------- ------ --------
Net increase/(decrease)................................... --* $ --* --* $ --*
====== ======== ====== ========
Total net increase/(decrease)............................. (3,782) $(37,697) (4,759) $(47,692)
====== ======== ====== ========
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
163
<PAGE> 168
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
TEXAS MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -------------------
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 42 $ 396 157 $ 1,477
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. (80) (760) (263) (2,523)
--- ----- ---- -------
Net increase/(decrease)................................... (38) $(364) (106) $(1,046)
=== ===== ==== =======
INVESTOR A SHARES:
Sold...................................................... --* $ --* 9 $ 84
Issued as reinvestment of dividends....................... --* 1 --* 4
Redeemed.................................................. (1) (12) (14) (135)
--- ----- ---- -------
Net increase/(decrease)................................... (1) $ (11) (5) $ (47)
=== ===== ==== =======
INVESTOR B SHARES:
Sold...................................................... 11 $ 105 7 $ 60
Issued as reinvestment of dividends....................... 7 64 15 152
Redeemed.................................................. (54) (516) (115) (1,094)
--- ----- ---- -------
Net increase/(decrease)................................... (36) $(347) (93) $ (882)
=== ===== ==== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ 1
Issued as reinvestment of dividends....................... --* 1 --* 3
Redeemed.................................................. --* (1) -- --*
--- ----- ---- -------
Net increase/(decrease)................................... --* $ --* --* $ 4
=== ===== ==== =======
Total net increase/(decrease)............................. (75) $(722) (204) $(1,971)
=== ===== ==== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
164
<PAGE> 169
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA INTERMEDIATE MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------ ------------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 3,229 $ 33,887 6,760 $ 71,512
Issued as reinvestment of dividends....................... 4 40 7 78
Redeemed.................................................. (1,970) (20,689) (5,701) (60,355)
------ -------- ------ --------
Net increase/(decrease)................................... 1,263 $ 13,238 1,066 $ 11,235
====== ======== ====== ========
INVESTOR A SHARES:
Sold...................................................... 74 $ 774 96 $ 905
Issued as reinvestment of dividends....................... 65 677 123 1,420
Redeemed.................................................. (457) (4,808) (945) (10,105)
------ -------- ------ --------
Net increase/(decrease)................................... (318) $ (3,357) (726) $ (7,780)
====== ======== ====== ========
INVESTOR B SHARES:
Sold...................................................... (1) $ (6) 81 $ 838
Issued as reinvestment of dividends....................... 11 117 22 256
Redeemed.................................................. (57) (597) (177) (1,882)
------ -------- ------ --------
Net increase/(decrease)................................... (47) $ (486) (74) $ (788)
====== ======== ====== ========
INVESTOR C SHARES:
Sold...................................................... 1 $ 12 19 $ 191
Issued as reinvestment of dividends....................... 1 12 2 28
Redeemed.................................................. (8) (80) (49) (518)
------ -------- ------ --------
Net increase/(decrease)................................... (6) $ (56) (28) $ (299)
====== ======== ====== ========
Total net increase/(decrease)............................. 892 $ 9,339 238 $ 2,368
====== ======== ====== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
165
<PAGE> 170
NATIONS FUNDS
SCHEDULES OF CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL BOND
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED
(UNAUDITED) MARCH 31, 2000
------------------- -----------------
SHARES DOLLARS SHARES DOLLARS
------------------------------------------
<S> <C> <C> <C> <C>
(IN THOUSANDS)
PRIMARY A SHARES:
Sold...................................................... 323 $ 3,069 1,000 $ 9,458
Issued as reinvestment of dividends....................... -- -- --* 2
Redeemed.................................................. (143) (1,347) (568) (5,336)
---- ------- ------ -------
Net increase/(decrease)................................... 180 $ 1,722 432 $ 4,124
==== ======= ====== =======
INVESTOR A SHARES:
Sold...................................................... 3 $ 28 48 $ 460
Issued as reinvestment of dividends....................... 1 5 2 15
Redeemed.................................................. (17) (154) (84) (802)
---- ------- ------ -------
Net increase/(decrease)................................... (13) $ (121) (34) $ (327)
==== ======= ====== =======
INVESTOR B SHARES:
Sold...................................................... 27 $ 256 50 $ 479
Issued as reinvestment of dividends....................... 15 144 31 296
Redeemed.................................................. (82) (786) (310) (2,936)
---- ------- ------ -------
Net increase/(decrease)................................... (40) $ (386) (229) $(2,161)
==== ======= ====== =======
INVESTOR C SHARES:
Sold...................................................... --* $ --* --* $ --*
Issued as reinvestment of dividends....................... --* --* --* --*
Redeemed.................................................. -- -- -- --
---- ------- ------ -------
Net increase/(decrease)................................... --* $ --* --* $ --*
==== ======= ====== =======
Total net increase/(decrease)............................. 127 $ 1,215 169 $ 1,636
==== ======= ====== =======
</TABLE>
---------------
* Amount represents less than 500 shares and/or $500, as applicable.
SEE NOTES TO FINANCIAL STATEMENTS.
166
<PAGE> 171
(This page intentionally left blank)
167
<PAGE> 172
NATIONS FUNDS
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL INCOME
PRIMARY A SHARES
Six months ended 9/30/2000# (unaudited)......... $ 9.94 $0.22 $ 0.05 $0.27 $(0.22)
Year ended 3/31/2000#........................... 10.10 0.41 (0.16) 0.25 (0.41)
Year ended 3/31/1999#........................... 10.05 0.41 0.05 0.46 (0.41)
Year ended 3/31/1998............................ 9.95 0.42 0.10 0.52 (0.42)
Year ended 3/31/1997............................ 9.98 0.44 (0.03) 0.41 (0.44)
Period ended 3/31/1996*......................... 10.03 0.15 (0.05) 0.10 (0.15)
Year ended 11/30/1995........................... 9.69 0.44 0.34 0.78 (0.44)
INVESTOR A SHARES
Six months ended 9/30/2000# (unaudited)......... $ 9.94 $0.21 $ 0.05 $0.26 $(0.21)
Year ended 3/31/2000#........................... 10.10 0.39 (0.16) 0.23 (0.39)
Year ended 3/31/1999#........................... 10.05 0.39 0.05 0.44 (0.39)
Year ended 3/31/1998............................ 9.95 0.40 0.10 0.50 (0.40)
Year ended 3/31/1997............................ 9.98 0.42 (0.03) 0.39 (0.42)
Period ended 3/31/1996*......................... 10.03 0.14 (0.05) 0.09 (0.14)
Year ended 11/30/1995........................... 9.69 0.42 0.34 0.76 (0.42)
INVESTOR B SHARES
Six months ended 9/30/2000# (unaudited)......... $ 9.94 $0.17 $ 0.05 $0.22 $(0.17)
Year ended 3/31/2000#........................... 10.10 0.36 (0.16) 0.20 (0.36)
Year ended 3/31/1999#........................... 10.05 0.38 0.05 0.43 (0.38)
Year ended 3/31/1998............................ 9.95 0.39 0.10 0.49 (0.39)
Year ended 3/31/1997............................ 9.98 0.40 (0.03) 0.37 (0.40)
Period ended 3/31/1996*......................... 10.03 0.13 (0.05) 0.08 (0.13)
Year ended 11/30/1995........................... 9.69 0.40 0.34 0.74 (0.40)
INVESTOR C SHARES
Six months ended 9/30/2000# (unaudited)......... $ 9.94 $0.18 $ 0.04 $0.22 $(0.17)
Year ended 3/31/2000#........................... 10.10 0.32 (0.16) 0.16 (0.32)
Year ended 3/31/1999#........................... 10.05 0.40 0.02 0.42 (0.37)
Year ended 3/31/1998............................ 9.95 0.39 0.10 0.49 (0.39)
Year ended 3/31/1997............................ 9.98 0.40 (0.03) 0.37 (0.40)
Period ended 3/31/1996*......................... 10.03 0.14 (0.05) 0.09 (0.14)
Year ended 11/30/1995........................... 9.69 0.42 0.34 0.76 (0.42)
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
168
<PAGE> 173
NATIONS 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) PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.99 2.74% $97,168 0.40%+(a) 4.41%+ 42% 0.69%+
9.94 2.58 94,393 0.40(a) 4.16 90 0.77
10.10 4.71 79,002 0.40(a) 4.11 53 0.80
10.05 5.33 70,740 0.40(a) 4.17 94 0.77
9.95 4.15 61,072 0.40(a) 4.36 80 0.84
9.98 0.96 48,511 0.40+(a) 4.37+ 16 0.86+
10.03 8.16 49,961 0.45(a) 4.38 82 0.93
$ 9.99 2.61% $20,208 0.65%+(a) 4.16%+ 42% 0.94%+
9.94 2.35 22,415 0.63(a) 3.93 90 1.02
10.10 4.50 35,805 0.60(a) 3.91 53 1.05
10.05 5.12 23,580 0.60(a) 3.97 94 0.97
9.95 3.96 8,417 0.60(a) 4.16 80 1.04
9.98 0.90 4,599 0.60+(a) 4.17+ 16 1.06+
10.03 7.95 3,741 0.65(a) 4.18 82 1.13
$ 9.99 2.23% $ 5,826 1.40%+(a) 3.41%+ 42% 1.69%+
9.94 1.99 7,030 0.94(a) 3.62 90 1.77
10.10 4.34 13,931 0.75(a) 3.76 53 1.80
10.05 4.96 13,753 0.75(a) 3.82 94 1.12
9.95 3.78 10,655 0.75(a) 4.01 80 1.19
9.98 0.84 13,859 0.75+(a) 4.02+ 16 1.21+
10.03 7.78 9,803 0.80(a) 4.03 82 1.28
$ 9.99 2.23% $ 1,191 1.40%+(a) 3.41%+ 42% 1.69%+
9.94 1.57 1,616 1.40(a) 3.16 90 1.77
10.10 4.29 2,583 0.83(a) 3.68 53 1.80
10.05 4.99 1,388 0.75(a) 3.82 94 1.12
9.95 3.79 1,080 0.75(a) 4.01 80 1.19
9.98 0.85 2,072 0.72+(a) 4.05+ 16 1.18+
10.03 7.95 1,953 0.70(a) 4.13 82 1.18
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
169
<PAGE> 174
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.78 $0.23 $ 0.09 $ 0.32 $(0.24) $ --
Year ended 3/31/2000#................ 10.30 0.47 (0.50) (0.03) (0.47) (0.02)
Year ended 3/31/1999................. 10.30 0.47 0.07 0.54 (0.47) (0.07)
Year ended 3/31/1998................. 10.01 0.48 0.33 0.81 (0.48) (0.04)
Year ended 3/31/1997................. 10.03 0.48 (0.02) 0.46 (0.48) --
Period ended 3/31/1996*.............. 10.17 0.16 (0.14) 0.02 (0.16) --
Year ended 11/30/1995................ 9.24 0.48 0.93 1.41 (0.48) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.78 $0.23 $ 0.09 $ 0.32 $(0.24) $ --
Year ended 3/31/2000#................ 10.30 0.45 (0.50) (0.05) (0.45) (0.02)
Year ended 3/31/1999................. 10.30 0.45 0.07 0.52 (0.45) (0.07)
Year ended 3/31/1998................. 10.01 0.46 0.33 0.79 (0.46) (0.04)
Year ended 3/31/1997................. 10.03 0.46 (0.02) 0.44 (0.46) --
Period ended 3/31/1996*.............. 10.17 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995................ 9.24 0.47 0.93 1.40 (0.47) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.78 $0.19 $ 0.08 $ 0.27 $(0.19) $ --
Year ended 3/31/2000#................ 10.30 0.38 (0.50) (0.12) (0.38) (0.02)
Year ended 3/31/1999................. 10.30 0.39 0.07 0.46 (0.39) (0.07)
Year ended 3/31/1998................. 10.01 0.41 0.33 0.74 (0.41) (0.04)
Year ended 3/31/1997................. 10.03 0.43 (0.02) 0.41 (0.43) --
Period ended 3/31/1996*.............. 10.17 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995................ 9.24 0.43 0.93 1.36 (0.43) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.78 $0.19 $ 0.08 $ 0.27 $(0.19) $ --
Year ended 3/31/2000#................ 10.30 0.38 (0.50) (0.12) (0.38) (0.02)
Year ended 3/31/1999................. 10.30 0.40 0.09 0.49 (0.42) (0.07)
Year ended 3/31/1998................. 10.01 0.42 0.33 0.75 (0.42) (0.04)
Year ended 3/31/1997................. 10.03 0.43 (0.02) 0.41 (0.43) --
Period ended 3/31/1996*.............. 10.17 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995................ 9.24 0.43 0.93 1.36 (0.43) --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
170
<PAGE> 175
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.24) $ 9.86 3.28% $1,163,651 0.50%+(a) 4.80%+ 11% 0.68%+
(0.49) 9.78 (0.27) 849,966 0.50(a) 4.75 30 0.70
(0.54) 10.30 5.33 918,367 0.50(a) 4.55 40 0.68
(0.52) 10.30 8.20 867,154 0.50(a) 4.65 47 0.74
(0.48) 10.01 4.63 108,204 0.50(a) 4.74 21 0.81
(0.16) 10.03 0.20 77,423 0.50+(a) 4.75+ 4 0.83+
(0.48) 10.17 15.60 73,897 0.45(a) 4.91 31 0.84
$(0.24) $ 9.86 3.15% $ 17,574 0.75%+(a) 4.55%+ 11% 0.93%+
(0.47) 9.78 (0.49) 19,782 0.73(a) 4.52 30 0.95
(0.52) 10.30 5.12 16,149 0.70(a) 4.35 40 0.93
(0.50) 10.30 7.99 6,487 0.70(a) 4.45 47 0.94
(0.46) 10.01 4.42 2,067 0.70(a) 4.54 21 1.01
(0.15) 10.03 0.13 1,500 0.70+(a) 4.55+ 4 1.03+
(0.47) 10.17 15.38 1,249 0.65(a) 4.71 31 1.04
$(0.19) $ 9.86 2.76% $ 2,548 1.50%+(a) 3.80%+ 11% 1.68%+
(0.40) 9.78 (1.18) 2,733 1.42(a) 3.83 30 1.70
(0.46) 10.30 4.49 2,556 1.30(a) 3.75 40 1.68
(0.45) 10.30 7.50 2,023 1.20(a) 3.95 47 1.44
(0.43) 10.01 4.12 1,481 1.00(a) 4.24 21 1.31
(0.14) 10.03 0.03 1,623 1.00+(a) 4.25+ 4 1.33+
(0.43) 10.17 15.02 1,352 0.95(a) 4.41 31 1.34
$(0.19) $ 9.86 2.76% $ 526 1.50%+(a) 3.80%+ 11% 1.68%+
(0.40) 9.78 (1.19) 539 1.50(a) 3.75 30 1.70
(0.49) 10.30 4.80 1,511 1.21(a) 3.84 40 1.68
(0.46) 10.30 7.62 1,590 1.20(a) 3.95 47 1.44
(0.43) 10.01 4.11 756 1.00(a) 4.24 21 1.31
(0.14) 10.03 0.03 716 1.00+(a) 4.25+ 4 1.33+
(0.43) 10.17 14.96 359 0.95(a) 4.41 31 1.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
171
<PAGE> 176
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL INCOME
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited).... $10.69 $0.28 $ 0.10 $ 0.38 $(0.28)
Year ended 3/31/2000#..................... 11.48 0.54 (0.78) (0.24) (0.54)
Year ended 3/31/1999...................... 11.46 0.54 0.07 0.61 (0.54)
Year ended 3/31/1998...................... 10.89 0.57 0.62 1.19 (0.57)
Year ended 3/31/1997...................... 10.84 0.59 0.05 0.64 (0.59)
Period ended 3/31/1996*................... 11.08 0.20 (0.24) (0.04) (0.20)
Year ended 11/30/1995..................... 9.64 0.59 1.44 2.03 (0.59)
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited).... $10.68 $0.27 $ 0.11 $ 0.38 $(0.27)
Year ended 3/31/2000#..................... 11.48 0.52 (0.79) (0.27) (0.52)
Year ended 3/31/1999...................... 11.46 0.52 0.07 0.59 (0.52)
Year ended 3/31/1998...................... 10.89 0.54 0.62 1.16 (0.54)
Year ended 3/31/1997...................... 10.84 0.57 0.05 0.62 (0.57)
Period ended 3/31/1996*................... 11.08 0.19 (0.24) (0.05) (0.19)
Year ended 11/30/1995..................... 9.64 0.57 1.44 2.01 (0.57)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited).... $10.69 $0.23 $ 0.10 $ 0.33 $(0.23)
Year ended 3/31/2000#..................... 11.48 0.44 (0.78) (0.34) (0.44)
Year ended 3/31/1999...................... 11.46 0.44 0.08 0.52 (0.45)
Year ended 3/31/1998...................... 10.89 0.48 0.62 1.10 (0.48)
Year ended 3/31/1997...................... 10.84 0.51 0.05 0.56 (0.51)
Period ended 3/31/1996*................... 11.08 0.17 (0.24) (0.07) (0.17)
Year ended 11/30/1995..................... 9.64 0.51 1.44 1.95 (0.51)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited).... $10.69 $0.23 $ 0.10 $ 0.33 $(0.23)
Year ended 3/31/2000#..................... 11.48 0.44 (0.78) (0.34) (0.44)
Year ended 3/31/1999...................... 11.46 0.46 0.07 0.53 (0.46)
Year ended 3/31/1998...................... 10.89 0.49 0.62 1.11 (0.49)
Year ended 3/31/1997...................... 10.84 0.53 0.05 0.58 (0.53)
Period ended 3/31/1996*................... 11.08 0.18 (0.24) (0.06) (0.18)
Year ended 11/30/1995..................... 9.64 0.51 1.44 1.95 (0.51)
<CAPTION>
DISTRIBUTIONS
FROM NET
REALIZED
GAINS
-------------
<S> <C>
MUNICIPAL INCOME
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited).... $ --
Year ended 3/31/2000#..................... (0.01)
Year ended 3/31/1999...................... (0.05)
Year ended 3/31/1998...................... (0.05)
Year ended 3/31/1997...................... --
Period ended 3/31/1996*................... --
Year ended 11/30/1995..................... --
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited).... $ --
Year ended 3/31/2000#..................... (0.01)
Year ended 3/31/1999...................... (0.05)
Year ended 3/31/1998...................... (0.05)
Year ended 3/31/1997...................... --
Period ended 3/31/1996*................... --
Year ended 11/30/1995..................... --
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited).... $ --
Year ended 3/31/2000#..................... (0.01)
Year ended 3/31/1999...................... (0.05)
Year ended 3/31/1998...................... (0.05)
Year ended 3/31/1997...................... --
Period ended 3/31/1996*................... --
Year ended 11/30/1995..................... --
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited).... $ --
Year ended 3/31/2000#..................... (0.01)
Year ended 3/31/1999...................... (0.05)
Year ended 3/31/1998...................... (0.05)
Year ended 3/31/1997...................... --
Period ended 3/31/1996*................... --
Year ended 11/30/1995..................... --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
172
<PAGE> 177
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.28) $10.79 3.70% $878,060 0.60%+(a) 5.21%+ 14% 0.78%+
(0.55) 10.69 (2.08) 552,650 0.60(a) 4.99 36 0.82
(0.59) 11.48 5.42 635,629 0.60(a) 4.71 11 0.80
(0.62) 11.46 11.12 456,485 0.60(a) 4.97 38 0.84
(0.59) 10.89 6.03 77,260 0.60(a) 5.41 25 0.91
(0.20) 10.84 (0.41) 68,022 0.60+(a) 5.35+ 4 0.91+
(0.59) 11.08 21.55 68,836 0.60(a) 5.63 49 0.88
$(0.27) $10.79 3.59% $ 34,036 0.82%+(a) 4.96%+ 14% 1.03%+
(0.53) 10.68 (2.28) 35,937 0.83(a) 4.76 36 1.07
(0.57) 11.48 5.21 28,625 0.80(a) 4.51 11 1.05
(0.59) 11.46 10.89 19,226 0.80(a) 4.77 38 1.04
(0.57) 10.89 5.82 15,075 0.80(a) 5.21 25 1.11
(0.19) 10.84 (0.47) 26,085 0.80+(a) 5.15+ 4 1.11+
(0.57) 11.08 21.31 27,963 0.80(a) 5.43 49 1.08
$(0.23) $10.79 3.19% $ 8,558 1.60%+(a) 4.21%+ 14% 1.78%+
(0.45) 10.69 (2.99) 8,795 1.53(a) 4.06 36 1.82
(0.50) 11.48 4.53 13,810 1.45(a) 3.86 11 1.80
(0.53) 11.46 10.23 15,383 1.42(a) 4.15 38 1.66
(0.51) 10.89 5.24 14,615 1.35(a) 4.66 25 1.66
(0.17) 10.84 (0.66) 16,870 1.35+(a) 4.60+ 4 1.66+
(0.51) 11.08 20.65 18,165 1.35(a) 4.88 49 1.63
$(0.23) $10.79 3.19% $ 1,259 1.60%+(a) 4.21%+ 14% 1.78%+
(0.45) 10.69 (3.03) 1,418 1.60(a) 3.99 36 1.82
(0.51) 11.48 4.64 2,150 1.36(a) 3.95 11 1.80
(0.54) 11.46 10.37 2,444 1.33(a) 4.24 38 1.57
(0.53) 10.89 5.50 1,713 1.10(a) 4.91 25 1.41
(0.18) 10.84 (0.60) 2,173 1.16+(a) 4.79+ 4 1.47+
(0.51) 11.08 20.65 2,268 1.35(a) 4.88 49 1.63
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
173
<PAGE> 178
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000
(unaudited)........................ $7.13 $0.18 $ 0.13 $ 0.31 $(0.18) $(0.00)##
Period ended 3/31/2000***............ 7.51 0.30 (0.36) (0.06) (0.30) (0.02)
INVESTOR A SHARES*
Six months ended 9/30/2000
(unaudited)........................ $7.14 $0.17 $ 0.13 $ 0.30 $(0.17) $(0.00)##
Period ended 3/31/2000............... 7.50 0.31 (0.34) (0.03) (0.31) (0.02)
Period ended 5/14/1999............... 7.60 0.07 (0.10) (0.03) (0.07) --
Year ended 2/28/1999................. 7.64 0.34 0.10 0.44 (0.34) (0.14)
Year ended 2/28/1998................. 7.35 0.35 0.29 0.64 (0.35) --
Year ended 2/28/1997**............... 7.45 0.36 (0.05) 0.31 (0.36) (0.05)
Year ended 2/29/1996................. 7.12 0.37 0.33 0.70 (0.37) --
INVESTOR B SHARES*
Six months ended 9/30/2000
(unaudited)........................ $7.14 $0.15 $ 0.14 $ 0.29 $(0.15) $(0.00)##
Period ended 3/31/2000............... 7.51 0.27 (0.35) (0.08) (0.27) (0.02)
Period ended 5/14/1999............... 7.61 0.06 (0.10) (0.04) (0.06) --
Period ended 2/28/1999***............ 7.61 0.16 0.14 0.30 (0.16) (0.14)
INVESTOR C SHARES
Six months ended 9/30/2000
(unaudited)........................ $7.12 $0.14 $ 0.13 $ 0.27 $(0.14) $(0.00)##
Period ended 3/31/2000***............ 7.31 0.19 (0.17) 0.02 (0.19) (0.02)
</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.
## Amount represents less than $0.01.
* The financial information for the fiscal periods through May 14, 1999
reflect the financial information for the Pacific Horizon California
Municipal Bond Fund A and B Shares, which were reorganized into the
California Municipal Bond Investor A and Investor B 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.
** As of July 22, 1996, the Fund designated the existing series of shares as
"A" Shares.
*** California Municipal Bond Primary A, Investor B and Investor C Shares
commenced operations on May 21, 1999, July 15, 1998 and July 29, 1999,
respectively.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
(b) The effect of the custodial expense offset (Note 2) on the operating
expense ratio, with and without waivers and/or expense reimbursements, was
less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
174
<PAGE> 179
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.18) $7.26 4.44% $ 30,090 0.60%+(a) 5.01%+ 12% 0.82%+
(0.32) 7.13 (0.66) 21,654 0.60+(a) 4.70+ 34 0.79+
$(0.17) $7.27 4.33% $148,452 0.82%+(a) 4.76%+ 12% 1.07%+
(0.33) 7.14 (0.46) 157,672 0.80+(a) 4.50+ 34 1.04+
(0.07) 7.50 (0.42) 206,000 0.93+ 4.40+ 1 0.96+
(0.48) 7.60 5.94 219,000 0.93 4.42 42 0.93
(0.35) 7.64 9.18 214,000 0.90(b) 4.74 28 1.06(b)
(0.41) 7.35 4.29 221,000 0.90(b) 4.88 34 1.10(b)
(0.37) 7.45 10.12 221,000 0.94(b) 5.11 57 1.14(b)
$(0.15) $7.28 4.11% $ 4,863 1.50%+(a) 4.01%+ 12% 1.82%+
(0.29) 7.14 (1.16) 4,206 1.45+(a) 3.85+ 34 1.79+
(0.06) 7.51 (0.57) 3,000 1.66+ 3.63+ 1 1.69+
(0.30) 7.61 4.09 2,000 1.70+(b) 3.67+ 42 1.71+(b)
$(0.14) $7.25 3.93% $ 510 1.60%+(a) 4.01%+ 12% 1.82%+
(0.21) 7.12 0.30 258 1.60+(a) 3.70+ 34 1.79+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
175
<PAGE> 180
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FLORIDA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited).......... $10.34 $0.25 $ 0.07 $ 0.32 $(0.25)
Year ended 3/31/2000#........................... 10.79 0.50 (0.45) 0.05 (0.50)
Year ended 3/31/1999............................ 10.77 0.50 0.02 0.52 (0.50)
Year ended 3/31/1998............................ 10.40 0.50 0.37 0.87 (0.50)
Year ended 3/31/1997............................ 10.46 0.49 (0.06) 0.43 (0.49)
Period ended 3/31/1996*......................... 10.63 0.17 (0.17) 0.00 (0.17)
Year ended 11/30/1995........................... 9.61 0.48 1.02 1.50 (0.48)
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited).......... $10.33 $0.24 $ 0.07 $ 0.31 $(0.24)
Year ended 3/31/2000#........................... 10.79 0.48 (0.46) 0.02 (0.48)
Year ended 3/31/1999............................ 10.77 0.48 0.02 0.50 (0.48)
Year ended 3/31/1998............................ 10.40 0.48 0.37 0.85 (0.48)
Year ended 3/31/1997............................ 10.46 0.47 (0.06) 0.41 (0.47)
Period ended 3/31/1996*......................... 10.63 0.16 (0.17) (0.01) (0.16)
Year ended 11/30/1995........................... 9.61 0.46 1.02 1.48 (0.46)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited).......... $10.34 $0.20 $ 0.07 $ 0.27 $(0.20)
Year ended 3/31/2000#........................... 10.79 0.41 (0.45) (0.04) (0.41)
Year ended 3/31/1999............................ 10.77 0.42 0.02 0.44 (0.42)
Year ended 3/31/1998............................ 10.40 0.43 0.37 0.80 (0.43)
Year ended 3/31/1997............................ 10.46 0.44 (0.06) 0.38 (0.44)
Period ended 3/31/1996*......................... 10.63 0.15 (0.17) (0.02) (0.15)
Year ended 11/30/1995........................... 9.61 0.43 1.02 1.45 (0.43)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited).......... $10.36 $0.20 $ 0.06 $ 0.26 $(0.20)
Year ended 3/31/2000#........................... 10.79 0.40 (0.43) (0.03) (0.40)
Year ended 3/31/1999............................ 10.77 0.41 0.03 0.44 (0.42)
Year ended 3/31/1998#........................... 10.40 0.43 0.37 0.80 (0.43)
Year ended 3/31/1997............................ 10.46 0.44 (0.06) 0.38 (0.44)
Period ended 3/31/1996*......................... 10.63 0.15 (0.17) (0.02) (0.15)
Year ended 11/30/1995........................... 9.61 0.43 1.02 1.45 (0.43)
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
176
<PAGE> 181
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
BEGINNING TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$10.41 3.17% $204,455 0.50%+(a) 4.90%+ 4% 0.72%+
10.34 0.54 207,704 0.50(a) 4.80 12 0.74
10.79 4.95 234,530 0.50 4.65 14 0.72
10.77 8.55 203,710 0.50(a) 4.74 13 0.76
10.40 4.22 51,748 0.50(a) 4.72 16 0.81
10.46 (0.06) 44,988 0.50+(a) 4.66+ 18 0.86+
10.63 15.92 44,038 0.55(a) 4.70 27 0.81
$10.40 3.05% $ 8,326 0.75%+(a) 4.65%+ 4% 0.97%+
10.33 0.22 9,695 0.73(a) 4.57 12 0.99
10.79 4.74 12,783 0.70 4.45 14 0.97
10.77 8.34 7,205 0.70(a) 4.54 13 0.96
10.40 4.01 2,142 0.70(a) 4.52 16 1.01
10.46 (0.13) 2,029 0.70+(a) 4.46+ 18 1.06+
10.63 15.68 2,292 0.75(a) 4.50 27 1.01
$10.41 2.66% $ 4,138 1.50%+(a) 3.90%+ 4% 1.72%+
10.34 (0.38) 4,639 1.41(a) 3.89 12 1.74
10.79 4.11 5,090 1.30 3.85 14 1.72
10.77 7.80 3,606 1.20(a) 4.04 13 1.46
10.40 3.70 3,488 1.00(a) 4.22 16 1.31
10.46 (0.23) 4,001 1.00+(a) 4.16+ 18 1.36+
10.63 15.34 4,775 1.05(a) 4.20 27 1.31
$10.42 2.56% $ 120 1.50%+(a) 3.90%+ 4% 1.72%+
10.36 (0.26) 117 1.50(a) 3.80 12 1.74
10.79 4.10 1,416 1.36 3.79 14 1.72
10.77 7.80 188 1.20(a) 4.04 13 1.46
10.40 3.71 272 1.00(a) 4.22 16 1.31
10.46 (0.23) 275 1.00+(a) 4.16+ 18 1.36+
10.63 15.34 277 1.05(a) 4.20 27 1.31
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
177
<PAGE> 182
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FLORIDA MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000# (unaudited)......... $9.53 $0.24 $ 0.07 $ 0.31 $(0.24)
Year ended 3/31/2000............................ 9.99 0.48 (0.46) 0.02 (0.48)
Year ended 3/31/1999............................ 9.99 0.48 0.00 0.48 (0.48)
Year ended 3/31/1998............................ 9.48 0.48 0.51 0.99 (0.48)
Year ended 3/31/1997............................ 9.47 0.48 0.01 0.49 (0.48)
Period ended 3/31/1996*......................... 9.76 0.16 (0.29) (0.13) (0.16)
Year ended 11/30/1995........................... 8.40 0.51 1.36 1.87 (0.51)
INVESTOR A SHARES
Six months ended 9/30/2000# (unaudited)......... $9.53 $0.23 $ 0.07 $ 0.30 $(0.23)
Year ended 3/31/2000............................ 9.99 0.46 (0.46) -- (0.46)
Year ended 3/31/1999............................ 9.99 0.46 0.00 0.46 (0.46)
Year ended 3/31/1998............................ 9.48 0.46 0.51 0.97 (0.46)
Year ended 3/31/1997............................ 9.47 0.46 0.01 0.47 (0.46)
Period ended 3/31/1996*......................... 9.76 0.15 (0.29) (0.14) (0.15)
Year ended 11/30/1995........................... 8.40 0.49 1.36 1.85 (0.49)
INVESTOR B SHARES
Six months ended 9/30/2000# (unaudited)......... $9.53 $0.19 $ 0.07 $ 0.26 $(0.19)
Year ended 3/31/2000............................ 9.99 0.39 (0.46) (0.07) (0.39)
Year ended 3/31/1999............................ 9.99 0.40 0.00 0.40 (0.40)
Year ended 3/31/1998............................ 9.48 0.40 0.51 0.91 (0.40)
Year ended 3/31/1997............................ 9.47 0.41 0.01 0.42 (0.41)
Period ended 3/31/1996*......................... 9.76 0.14 (0.29) (0.15) (0.14)
Year ended 11/30/1995........................... 8.40 0.44 1.36 1.80 (0.44)
INVESTOR C SHARES
Six months ended 9/30/2000# (unaudited)......... $9.53 $0.19 $ 0.07 $ 0.26 $(0.19)
Year ended 3/31/2000............................ 9.99 0.38 (0.46) (0.08) (0.38)
Year ended 3/31/1999#........................... 9.99 0.37 0.03 0.40 (0.40)
Year ended 3/31/1998#........................... 9.48 0.41 0.51 0.92 (0.41)
Year ended 3/31/1997............................ 9.47 0.44 0.01 0.45 (0.44)
Period ended 3/31/1996*......................... 9.76 0.14 (0.29) (0.15) (0.14)
Year ended 11/30/1995........................... 8.40 0.44 1.36 1.80 (0.44)
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
178
<PAGE> 183
NATIONS 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) PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$9.60 3.35% $80,986 0.60%+(a) 5.03%+ 3% 0.85%+
9.53 0.26 79,335 0.60(a) 4.98 18 0.86
9.99 4.90 77,197 0.60(a) 4.80 16 0.85
9.99 10.60 27,378 0.60(a) 4.85 19 0.90
9.48 5.29 16,702 0.60(a) 5.07 23 0.93
9.47 (1.33) 13,044 0.60+(a) 5.03+ 7 0.96+
9.76 22.69 11,219 0.39(a) 5.44 13 0.95
$9.60 3.22% $45,605 0.85%+(a) 4.78%+ 3% 1.10%+
9.53 0.04 49,439 0.83(a) 4.75 18 1.11
9.99 4.69 65,373 0.80(a) 4.60 16 1.10
9.99 10.38 2,027 0.80(a) 4.65 19 1.10
9.48 5.09 1,781 0.80(a) 4.87 23 1.13
9.47 (1.40) 1,836 0.80+(a) 4.83+ 7 1.16+
9.76 22.45 1,787 0.59 5.24 13 1.15
$9.60 2.83% $10,953 1.60%+(a) 4.03%+ 3% 1.85%+
9.53 (0.67) 12,802 1.53(a) 4.05 18 1.86
9.99 4.01 15,435 1.45(a) 3.95 16 1.85
9.99 9.71 17,048 1.42(a) 4.03 19 1.72
9.48 4.52 19,751 1.35(a) 4.32 23 1.68
9.47 (1.58) 23,947 1.35+(a) 4.28+ 7 1.71+
9.76 21.78 25,398 1.14(a) 4.69 13 1.70
$9.60 2.84% $ 23 1.60%+(a) 4.03%+ 3% 1.85%+
9.53 (0.73) 23 1.60(a) 3.98 18 1.86
9.99 4.01 23 1.53(a) 3.87 16 1.85
9.99 9.83 3 1.33(a) 4.12 19 1.63
9.48 4.78 40 1.10(a) 4.57 23 1.43
9.47 (1.52) 38 1.15+(a) 4.48+ 7 1.51+
9.76 21.80 38 1.14(a) 4.69 13 1.70
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
179
<PAGE> 184
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GEORGIA INTERMEDIATE MUNICIPAL
BOND
PRIMARY A SHARES
Six months ended 9/30/2000
(unaudited).................. $10.42 $0.25 $ 0.10 $ 0.35 $(0.25) $ --
Year ended 3/31/2000........... 10.94 0.50 (0.51) (0.01) (0.50) (0.01)
Year ended 3/31/1999........... 10.92 0.49 0.07 0.56 (0.50) (0.04)
Year ended 3/31/1998........... 10.58 0.49 0.38 0.87 (0.49) (0.04)
Year ended 3/31/1997........... 10.63 0.50 (0.05) 0.45 (0.50) --
Period ended 3/31/1996*........ 10.81 0.17 (0.18) (0.01) (0.17) --
Year ended 11/30/1995.......... 9.82 0.50 0.99 1.49 (0.50) --
INVESTOR A SHARES
Six months ended 9/30/2000
(unaudited).................. $10.42 $0.24 $ 0.10 $ 0.34 $(0.24) $ --
Year ended 3/31/2000........... 10.94 0.48 (0.52) (0.04) (0.47) (0.01)
Year ended 3/31/1999........... 10.92 0.47 0.06 0.53 (0.47) (0.04)
Year ended 3/31/1998........... 10.58 0.47 0.38 0.85 (0.47) (0.04)
Year ended 3/31/1997........... 10.63 0.48 (0.05) 0.43 (0.48) --
Period ended 3/31/1996*........ 10.81 0.16 (0.18) (0.02) (0.16) --
Year ended 11/30/1995.......... 9.82 0.48 0.99 1.47 (0.48) --
INVESTOR B SHARES
Six months ended 9/30/2000
(unaudited).................. $10.42 $0.20 $ 0.10 $ 0.30 $(0.20) $ --
Year ended 3/31/2000........... 10.94 0.40 (0.51) (0.11) (0.40) (0.01)
Year ended 3/31/1999........... 10.92 0.41 0.06 0.47 (0.41) (0.04)
Year ended 3/31/1998........... 10.58 0.42 0.38 0.80 (0.42) (0.04)
Year ended 3/31/1997........... 10.63 0.45 (0.05) 0.40 (0.45) --
Period ended 3/31/1996*........ 10.81 0.15 (0.18) (0.03) (0.15) --
Year ended 11/30/1995.......... 9.82 0.45 0.99 1.44 (0.45) --
INVESTOR C SHARES
Six months ended 9/30/2000
(unaudited).................. $10.42 $0.20 $ 0.10 $ 0.30 $(0.20) $ --
Year ended 3/31/2000........... 10.94 0.39 (0.51) (0.12) (0.39) (0.01)
Year ended 3/31/1999........... 10.92 0.41 0.05 0.46 (0.40) (0.04)
Year ended 3/31/1998#.......... 10.58 0.42 0.38 0.80 (0.42) (0.04)
Year ended 3/31/1997........... 10.63 0.45 (0.05) 0.40 (0.45) --
Period ended 3/31/1996*........ 10.81 0.15 (0.18) (0.03) (0.15) --
Year ended 11/30/1995.......... 9.82 0.45 0.99 1.44 (0.45) --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
180
<PAGE> 185
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.25) $10.52 3.44% $120,635 0.50%+(a) 4.86%+ 5% 0.74%+
(0.51) 10.42 (0.02) 121,948 0.50(a) 4.69 28 0.78
(0.54) 10.94 5.20 132,016 0.50 4.51 14 0.73
(0.53) 10.92 8.45 125,654 0.50 4.54 25 0.75
(0.50) 10.58 4.33 43,470 0.50 4.72 9 0.80
(0.17) 10.63 (0.13) 38,222 0.50+ 4.67+ 3 0.83+
(0.50) 10.81 15.42 40,383 0.55 4.76 17 0.80
$(0.24) $10.52 3.31% $ 11,683 0.75%+(a) 4.61%+ 5% 0.99%+
(0.48) 10.42 (0.27) 13,244 0.73(a) 4.46 28 1.03
(0.51) 10.94 4.99 19,674 0.70 4.31 14 0.98
(0.51) 10.92 8.24 9,446 0.70 4.34 25 0.95
(0.48) 10.58 4.12 8,810 0.70 4.52 9 1.00
(0.16) 10.63 (0.19) 8,625 0.70+ 4.47+ 3 1.03+
(0.48) 10.81 15.20 9,175 0.75 4.56 17 1.00
$(0.20) $10.52 2.93% $ 6,592 1.50%+(a) 3.86%+ 5% 1.74%+
(0.41) 10.42 (0.96) 6,812 1.41(a) 3.78 28 1.78
(0.45) 10.94 4.37 8,310 1.30 3.71 14 1.73
(0.46) 10.92 7.70 7,378 1.20 3.84 25 1.45
(0.45) 10.58 3.81 7,601 1.00 4.22 9 1.30
(0.15) 10.63 (0.29) 8,098 1.00+ 4.17+ 3 1.33+
(0.45) 10.81 14.85 8,160 1.05 4.26 17 1.30
$(0.20) $10.52 3.03% $ 738 1.50%+(a) 3.86%+ 5% 1.74%+
(0.40) 10.42 (1.13) 764 1.50(a) 3.69 28 1.78
(0.44) 10.94 4.35 886 1.31 3.70 14 1.73
(0.46) 10.92 7.70 1,034 1.20 3.84 25 1.45
(0.45) 10.58 3.81 1,983 1.00 4.22 9 1.30
(0.15) 10.63 (0.29) 2,445 1.00+ 4.17+ 3 1.33+
(0.45) 10.81 14.85 2,606 1.05 4.26 17 1.30
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
181
<PAGE> 186
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GEORGIA MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000 (unaudited).......... $ 9.53 $0.23 $ 0.12 $ 0.35 $(0.24)
Year ended 3/31/2000............................ 10.12 0.46 (0.59) (0.13) (0.46)
Year ended 3/31/1999............................ 10.00 0.46 0.12 0.58 (0.46)
Year ended 3/31/1998............................ 9.50 0.47 0.50 0.97 (0.47)
Year ended 3/31/1997............................ 9.48 0.47 0.02 0.49 (0.47)
Period ended 3/31/1996*......................... 9.72 0.16 (0.24) (0.08) (0.16)
Year ended 11/30/1995........................... 8.38 0.51 1.34 1.85 (0.51)
INVESTOR A SHARES
Six months ended 9/30/2000 (unaudited).......... $ 9.53 $0.23 $ 0.10 $ 0.33 $(0.22)
Year ended 3/31/2000............................ 10.12 0.43 (0.59) (0.16) (0.43)
Year ended 3/31/1999............................ 10.00 0.44 0.12 0.56 (0.44)
Year ended 3/31/1998............................ 9.50 0.45 0.50 0.95 (0.45)
Year ended 3/31/1997............................ 9.48 0.45 0.02 0.47 (0.45)
Period ended 3/31/1996*......................... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995........................... 8.38 0.49 1.34 1.83 (0.49)
INVESTOR B SHARES
Six months ended 9/30/2000 (unaudited).......... $ 9.53 $0.19 $ 0.11 $ 0.30 $(0.19)
Year ended 3/31/2000............................ 10.12 0.37 (0.59) (0.22) (0.37)
Year ended 3/31/1999............................ 10.00 0.37 0.12 0.49 (0.37)
Year ended 3/31/1998............................ 9.50 0.39 0.50 0.89 (0.39)
Year ended 3/31/1997............................ 9.48 0.40 0.02 0.42 (0.40)
Period ended 3/31/1996*......................... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995........................... 8.38 0.44 1.34 1.78 (0.44)
INVESTOR C SHARES
Six months ended 9/30/2000 (unaudited).......... $ 9.53 $0.19 $ 0.11 $ 0.30 $(0.19)
Year ended 3/31/2000............................ 10.12 0.36 (0.59) (0.23) (0.36)
Year ended 3/31/1999............................ 10.00 0.37 0.12 0.49 (0.37)
Year ended 3/31/1998#........................... 9.50 0.40 0.50 0.90 (0.40)
Year ended 3/31/1997............................ 9.48 0.42 0.02 0.44 (0.42)
Period ended 3/31/1996*......................... 9.72 0.14 (0.24) (0.10) (0.14)
Year ended 11/30/1995........................... 8.38 0.44 1.34 1.78 (0.44)
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
182
<PAGE> 187
NATIONS 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) PORTFOLIO EXPENSES TO
VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.64 3.69% $15,217 0.60%+(a) 4.94%+ 4% 1.16%+
9.53 (1.27) 13,064 0.60 4.74 50 1.38
10.12 5.89 9,719 0.60 4.53 17 1.18
10.00 10.43 8,138 0.60(a) 4.82 30 1.02
9.50 5.29 5,550 0.60(a) 4.96 19 1.05
9.48 (0.84) 2,068 0.60+(a) 4.96+ 7 1.14+
9.72 22.48 2,628 0.40(a) 5.42 26 1.09
$ 9.64 3.56% $ 1,773 0.85%+(a) 4.69%+ 4% 1.41%+
9.53 (1.50) 1,853 0.83 4.51 50 1.63
10.12 5.68 2,611 0.80 4.33 17 1.43
10.00 10.22 483 0.80(a) 4.62 30 1.22
9.50 5.05 208 0.80(a) 4.76 19 1.25
9.48 (1.08) 7 0.80+(a) 4.76+ 7 1.34+
9.72 22.25 7 0.60(a) 5.22 26 1.29
$ 9.64 3.17% $ 9,784 1.60%+(a) 3.94%+ 4% 2.16%+
9.53 (2.19) 10,285 1.54 3.80 50 2.38
10.12 5.00 11,348 1.45 3.68 17 2.18
10.00 9.54 10,052 1.42(a) 4.00 30 1.84
9.50 4.50 10,182 1.35(a) 4.21 19 1.80
9.48 (1.09) 12,254 1.35+(a) 4.21+ 7 1.89+
9.72 21.58 13,017 1.15(a) 4.67 26 1.84
$ 9.64 3.17% $ 55 1.60%+(a) 3.94%+ 4% 2.16%+
9.53 (2.29) 60 1.60 3.74 50 2.38
10.12 4.97 3 1.49 3.64 17 2.18
10.00 9.64 27 1.33(a) 4.09 30 1.75
9.50 4.77 72 1.10(a) 4.46 19 1.55
9.48 (1.03) 69 1.16+(a) 4.40+ 7 1.70+
9.72 21.59 69 1.15(a) 4.67 26 1.84
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
183
<PAGE> 188
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL INCOME
PRIMARY A SHARES
Period ended 9/30/2000*
(unaudited).................. $10.00 $0.09 $0.00 $0.09 $(0.09) $0.00
INVESTOR A SHARES
Period ended 9/30/2000*
(unaudited).................. $10.00 $0.06 $0.00 $0.06 $(0.06) $0.00
INVESTOR B SHARES
Period ended 9/30/2000*
(unaudited).................. $10.00 $0.03 $0.00 $0.03 $(0.03) $0.00
</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.
* Kansas Municipal Income Primary A, Investor A and Investor B Shares
commenced operations on July 17, 2000, August 14, 2000 and August 29, 2000,
respectively.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
184
<PAGE> 189
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.09) $10.00 0.92% $120,804 0.60%+(a) 4.42%+ 5% 0.92%+
$(0.06) $10.00 0.15% $ 1,313 0.85%+(a) 4.28%+ 5% 1.17%+
$(0.03) $10.00 (0.31)% $ 248 1.60%+(a) 3.25%+ 5% 1.92%+
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
185
<PAGE> 190
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.58 $0.25 $ 0.10 $ 0.35 $(0.25) $ --
Year ended 3/31/2000................. 11.07 0.50 (0.48) 0.02 (0.50) (0.01)
Year ended 3/31/1999................. 11.01 0.50 0.06 0.56 (0.50) --
Year ended 3/31/1998................. 10.70 0.51 0.31 0.82 (0.51) --
Year ended 3/31/1997................. 10.80 0.51 (0.10) 0.41 (0.51) --
Period ended 3/31/1996*.............. 10.95 0.17 (0.15) 0.02 (0.17) --
Year ended 11/30/1995................ 10.00 0.51 0.98 1.49 (0.51) (0.03)
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.58 $0.24 $ 0.10 $ 0.34 $(0.24) $ --
Year ended 3/31/2000................. 11.07 0.47 (0.48) (0.01) (0.47) (0.01)
Year ended 3/31/1999................. 11.01 0.48 0.06 0.54 (0.48) --
Year ended 3/31/1998................. 10.70 0.49 0.31 0.80 (0.49) --
Year ended 3/31/1997................. 10.80 0.48 (0.10) 0.38 (0.48) --
Period ended 3/31/1996*.............. 10.95 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995................ 10.00 0.48 0.98 1.46 (0.48) (0.03)
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.58 $0.20 $ 0.10 $ 0.30 $(0.20) $ --
Year ended 3/31/2000................. 11.07 0.40 (0.48) (0.08) (0.40) (0.01)
Year ended 3/31/1999................. 11.01 0.41 0.06 0.47 (0.41) --
Year ended 3/31/1998................. 10.70 0.43 0.31 0.74 (0.43) --
Year ended 3/31/1997................. 10.80 0.45 (0.10) 0.35 (0.45) --
Period ended 3/31/1996*.............. 10.95 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995................ 10.00 0.45 0.98 1.43 (0.45) (0.03)
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.58 $0.20 $ 0.10 $ 0.30 $(0.20) $ --
Year ended 3/31/2000................. 11.07 0.39 (0.48) (0.09) (0.39) (0.01)
Year ended 3/31/1999................. 11.01 0.41 0.06 0.47 (0.41) --
Year ended 3/31/1998................. 10.70 0.43 0.31 0.74 (0.43) --
Year ended 3/31/1997................. 10.80 0.45 (0.10) 0.35 (0.45) --
Period ended 3/31/1996*.............. 10.95 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995................ 10.00 0.45 0.98 1.43 (0.45) (0.03)
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
186
<PAGE> 191
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.25) $10.68 3.39% $173,815 0.50%+ 4.78%+ 13% 0.72%+
(0.51) 10.58 0.17 169,218 0.50 4.65 21 0.76
(0.50) 11.07 5.17 183,356 0.50 4.51 22 0.74
(0.51) 11.01 7.83 84,715 0.50 4.63 12 0.80
(0.51) 10.70 3.83 63,549 0.50(a) 4.70 10 0.78
(0.17) 10.80 0.16 61,337 0.50+(a) 4.62+ 4 0.81+
(0.54) 10.95 15.16 62,460 0.55(a) 4.76 11 0.80
$(0.24) $10.68 3.26% $ 16,952 0.75%+ 4.53%+ 13% 0.97%+
(0.48) 10.58 (0.06) 16,454 0.73 4.42 21 1.01
(0.48) 11.07 4.96 17,166 0.70 4.31 22 0.99
(0.49) 11.01 7.61 15,558 0.70 4.43 12 1.00
(0.48) 10.70 3.62 14,988 0.70(a) 4.50 10 0.98
(0.16) 10.80 0.09 19,456 0.70+(a) 4.42+ 4 1.01+
(0.51) 10.95 14.94 21,208 0.75(a) 4.56 11 1.00
$(0.20) $10.68 2.88% $ 5,375 1.50%+ 3.78%+ 13% 1.72%+
(0.41) 10.58 (0.74) 5,662 1.42 3.73 21 1.76
(0.41) 11.07 4.33 5,989 1.30 3.71 22 1.74
(0.43) 11.01 7.07 4,804 1.20 3.93 12 1.50
(0.45) 10.70 3.31 4,299 1.00(a) 4.20 10 1.28
(0.15) 10.80 (0.01) 4,500 1.00+(a) 4.12+ 4 1.31+
(0.48) 10.95 14.59 4,485 1.05(a) 4.26 11 1.30
$(0.20) $10.68 2.88% $ 266 1.50%+ 3.78%+ 13% 1.72%+
(0.40) 10.58 (0.82) 335 1.50 3.65 21 1.76
(0.41) 11.07 4.31 561 1.32 3.69 22 1.74
(0.43) 11.01 7.07 840 1.20 3.93 12 1.50
(0.45) 10.70 3.31 2,017 1.00(a) 4.20 10 1.28
(0.15) 10.80 (0.01) 2,900 1.00+(a) 4.12+ 4 1.31+
(0.48) 10.95 14.59 2,808 1.05(a) 4.26 11 1.30
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
187
<PAGE> 192
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MARYLAND MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.53 $0.23 $ 0.14 $ 0.37 $(0.23) $ --
Year ended 3/31/2000#................ 9.99 0.42 (0.45) (0.03) (0.42) (0.01)
Year ended 3/31/1999................. 9.94 0.43 0.05 0.48 (0.43) (0.00)##
Year ended 3/31/1998................. 9.41 0.45 0.53 0.98 (0.45) --
Year ended 3/31/1997................. 9.39 0.46 0.02 0.48 (0.46) --
Period ended 3/31/1996*.............. 9.63 0.15 (0.24) (0.09) (0.15) --
Year ended 11/30/1995 8.37 0.48 1.26 1.74 (0.48) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.53 $0.22 $ 0.14 $ 0.36 $(0.22) $ --
Year ended 3/31/2000#................ 9.99 0.40 (0.45) (0.05) (0.40) (0.01)
Year ended 3/31/1999................. 9.94 0.41 0.05 0.46 (0.41) (0.00)##
Year ended 3/31/1998................. 9.41 0.43 0.53 0.96 (0.43) --
Year ended 3/31/1997................. 9.39 0.44 0.02 0.46 (0.44) --
Period ended 3/31/1996*.............. 9.63 0.14 (0.24) (0.10) (0.14) --
Year ended 11/30/1995................ 8.37 0.46 1.26 1.72 (0.46) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.53 $0.18 $ 0.14 $ 0.32 $(0.18) $ --
Year ended 3/31/2000#................ 9.99 0.33 (0.45) (0.12) (0.33) (0.01)
Year ended 3/31/1999................. 9.94 0.35 0.05 0.40 (0.35) (0.00)##
Year ended 3/31/1998................. 9.41 0.37 0.53 0.90 (0.37) --
Year ended 3/31/1997................. 9.39 0.39 0.02 0.41 (0.39) --
Period ended 3/31/1996*.............. 9.63 0.13 (0.24) (0.11) (0.13) --
Year ended 11/30/1995................ 8.37 0.41 1.26 1.67 (0.41) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.53 $0.18 $ 0.14 $ 0.32 $(0.18) $ --
Year ended 3/31/2000#................ 9.99 0.33 (0.45) (0.12) (0.33) (0.01)
Year ended 3/31/1999................. 9.94 0.34 0.05 0.39 (0.34) (0.00)##
Year ended 3/31/1998................. 9.41 0.39 0.53 0.92 (0.39) --
Year ended 3/31/1997................. 9.39 0.42 0.02 0.44 (0.42) --
Period ended 3/31/1996*.............. 9.63 0.13 (0.24) (0.11) (0.13) --
Year ended 11/30/1995................ 8.37 0.41 1.26 1.67 (0.41) --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
188
<PAGE> 193
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSET NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS VALUE END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND END OF TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.23) $9.67 3.94% $17,772 0.60%+(a) 4.81%+ 18% 1.07%+
(0.43) 9.53 (0.25) 17,587 0.60 4.41 50 1.22
(0.43) 9.99 4.92 17,033 0.60 4.29 22 1.07
(0.45) 9.94 10.62 9,049 0.60 4.61 17 1.07
(0.46) 9.41 5.20 4,596 0.60 4.88 18 1.12
(0.15) 9.39 (0.95) 2,788 0.60+ 4.72+ 7 1.23+
(0.48) 9.63 21.23 2,595 0.40 5.14 11 1.26
$(0.22) $9.67 3.81% $ 1,992 0.85%+(a) 4.56%+ 18% 1.32%+
(0.41) 9.53 (0.49) 1,781 0.83 4.18 50 1.47
(0.41) 9.99 4.71 1,751 0.80 4.09 22 1.32
(0.43) 9.94 10.40 1,902 0.80 4.41 17 1.27
(0.44) 9.41 4.99 1,409 0.80 4.68 18 1.32
(0.14) 9.39 (1.01) 1,086 0.80+ 4.52+ 7 1.43+
(0.46) 9.63 20.99 1,031 0.60 4.94 11 1.46
$(0.18) $9.67 3.42% $15,984 1.60%+(a) 3.81%+ 18% 2.07%+
(0.34) 9.53 (1.19) 16,034 1.54 3.47 50 2.22
(0.35) 9.99 4.03 16,124 1.45 3.44 22 2.07
(0.37) 9.94 9.72 11,071 1.42 3.79 17 1.89
(0.39) 9.41 4.42 8,099 1.35 4.13 18 1.87
(0.13) 9.39 (1.19) 9,662 1.35+ 3.97+ 7 1.98+
(0.41) 9.63 20.33 10,002 1.15 4.39 11 2.01
$(0.18) $9.67 3.42% $ 221 1.60%+(a) 3.81%+ 18% 2.07%+
(0.34) 9.53 (1.23) 214 1.60 3.41 50 2.22
(0.34) 9.99 4.01 3 1.47 3.42 22 2.07
(0.39) 9.94 9.88 3 1.33 3.88 17 1.80
(0.42) 9.41 4.73 2 1.10 4.38 18 1.62
(0.13) 9.39 (1.13) 2 1.16+ 4.16+ 7 1.79+
(0.41) 9.63 20.29 2 1.15 4.39 11 2.01
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
189
<PAGE> 194
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORTH CAROLINA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000
(unaudited)........................ $10.21 $0.24 $ 0.08 $ 0.32 $(0.24) $ --
Year ended 3/31/2000................. 10.71 0.48 (0.48) 0.00 (0.48) (0.02)
Year ended 3/31/1999................. 10.70 0.49 0.04 0.53 (0.49) (0.03)
Year ended 3/31/1998................. 10.34 0.49 0.36 0.85 (0.49) --
Year ended 3/31/1997................. 10.36 0.47 (0.02) 0.45 (0.47) --
Period ended 3/31/1996*.............. 10.51 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995................ 9.53 0.45 0.99 1.44 (0.45)### (0.01)
INVESTOR A SHARES
Six months ended 9/30/2000
(unaudited)........................ $10.21 $0.23 $ 0.08 $ 0.31 $(0.23) $ --
Year ended 3/31/2000................. 10.71 0.46 (0.48) (0.02) (0.46) (0.02)
Year ended 3/31/1999................. 10.70 0.47 0.04 0.51 (0.47) (0.03)
Year ended 3/31/1998................. 10.34 0.47 (0.36) 0.83 (0.47) --
Year ended 3/31/1997................. 10.36 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996*.............. 10.51 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995................ 9.53 0.43 0.99 1.42 (0.43)### (0.01)
INVESTOR B SHARES
Six months ended 9/30/2000
(unaudited)........................ $10.21 $0.19 $ 0.07 $ 0.26 $(0.19) $ --
Year ended 3/31/2000................. 10.71 0.39 (0.48) (0.09) (0.39) (0.02)
Year ended 3/31/1999................. 10.70 0.40 0.04 0.44 (0.40) (0.03)
Year ended 3/31/1998................. 10.34 0.42 0.36 0.78 (0.42) --
Year ended 3/31/1997................. 10.36 0.42 (0.02) 0.40 (0.42) --
Period ended 3/31/1996*.............. 10.51 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995................ 9.53 0.40 0.99 1.39 (0.40)### (0.01)
INVESTOR C SHARES
Six months ended 9/30/2000
(unaudited)........................ $10.21 $0.19 $ 0.07 $ 0.26 $(0.19) $ --
Year ended 3/31/2000................. 10.71 0.38 (0.48) (0.10) (0.38) (0.02)
Year ended 3/31/1999................. 10.70 0.42 0.02 0.44 (0.40) (0.03)
Year ended 3/31/1998................. 10.34 0.42 0.36 0.78 (0.42) --
Year ended 3/31/1997................. 10.36 0.42 (0.02) 0.40 (0.42) --
Period ended 3/31/1996*.............. 10.51 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995................ 9.53 0.40 0.99 1.39 (0.40)### (0.01)
</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
November 30.
### Amount includes distributions in excess of net investment income, which
were less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
190
<PAGE> 195
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.24) $10.29 3.21% $178,919 0.50%+ 4.76%+ 14% 0.72%+
(0.50) 10.21 0.05 175,650 0.50(a) 4.67 19 0.76
(0.52) 10.71 5.03 193,398 0.50 4.57 16 0.71
(0.49) 10.70 8.39 179,729 0.50(a) 4.69 21 0.76
(0.47) 10.34 4.45 25,855 0.50(a) 4.57 26 0.82
(0.16) 10.36 0.05 21,161 0.50+ 4.47+ 3 0.87+
(0.46) 10.51 15.41 20,916 0.57(a) 4.47 57 0.84
$(0.23) $10.29 3.09% $ 9,951 0.75%+ 4.51%+ 14% 0.97%+
(0.48) 10.21 (0.18) 9,684 0.73(a) 4.44 19 1.01
(0.50) 10.71 4.82 10,099 0.70 4.37 16 0.96
(0.47) 10.70 8.17 8,572 0.70(a) 4.49 21 0.96
(0.45) 10.34 4.25 5,723 0.70(a) 4.37 26 1.02
(0.15) 10.36 (0.01) 7,672 0.70+ 4.27+ 3 1.07+
(0.44) 10.51 15.18 8,525 0.77(a) 4.27 57 1.04
$(0.19) $10.28 2.60% $ 5,087 1.50%+ 3.76%+ 14% 1.72%+
(0.41) 10.21 (0.87) 5,212 1.41(a) 3.76 19 1.76
(0.43) 10.71 4.20 6,671 1.30 3.77 16 1.71
(0.42) 10.70 7.64 6,859 1.20(a) 3.99 21 1.46
(0.42) 10.34 3.94 6,796 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 8,102 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 7,848 1.07(a) 3.97 57 1.34
$(0.19) $10.28 2.60% $ 79 1.50%+ 3.76%+ 14% 1.72%+
(0.40) 10.21 (0.95) 88 1.50(a) 3.67 19 1.76
(0.43) 10.71 4.18 109 1.31 3.76 16 1.71
(0.42) 10.70 7.64 822 1.20(a) 3.99 21 1.46
(0.42) 10.34 3.94 1,364 1.00(a) 4.07 26 1.32
(0.14) 10.36 (0.12) 1,379 1.00+ 3.97+ 3 1.37+
(0.41) 10.51 14.84 1,366 1.07(a) 3.97 57 1.34
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
191
<PAGE> 196
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET NET ASSET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT VALUE
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME END OF PERIOD
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORTH CAROLINA MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000
(unaudited)........................ $ 9.52 $0.24 $ 0.10 $ 0.34 $(0.24) $ 9.62
Year ended 3/31/2000#................ 10.08 0.45 (0.56) (0.11) (0.45) 9.52
Year ended 3/31/1999................. 10.01 0.45 0.08 0.53 (0.46) 10.08
Year ended 3/31/1998................. 9.47 0.47 0.54 1.01 (0.47) 10.01
Year ended 3/31/1997................. 9.49 0.47 (0.02) 0.45 (0.47) 9.47
Period ended 3/31/1996*.............. 9.73 0.16 (0.24) (0.08) (0.16) 9.49
Year ended 11/30/1995................ 8.36 0.50 1.37 1.87 (0.50) 9.73
INVESTOR A SHARES
Six months ended 9/30/2000
(unaudited)........................ $ 9.52 $0.22 $ 0.11 $ 0.33 $(0.23) $ 9.62
Year ended 3/31/2000#................ 10.08 0.43 (0.56) (0.13) (0.43) 9.52
Year ended 3/31/1999................. 10.01 0.43 0.08 0.51 (0.44) 10.08
Year ended 3/31/1998................. 9.47 0.45 0.54 (0.99) (0.45) 10.01
Year ended 3/31/1997................. 9.49 0.45 (0.02) 0.43 (0.45) 9.47
Period ended 3/31/1996*.............. 9.73 0.15 (0.24) (0.09) (0.15) 9.49
Year ended 11/30/1995................ 8.36 0.49 1.37 1.86 (0.49) 9.73
INVESTOR B SHARES
Six months ended 9/30/2000
(unaudited)........................ $ 9.52 $0.19 $ 0.10 $ 0.29 $(0.19) $ 9.62
Year ended 3/31/2000#................ 10.08 0.37 (0.56) (0.19) (0.37) 9.52
Year ended 3/31/1999................. 10.01 0.38 0.07 0.45 (0.38) 10.08
Year ended 3/31/1998................. 9.47 0.39 0.54 0.93 (0.39) 10.01
Year ended 3/31/1997................. 9.49 0.40 (0.02) 0.38 (0.40) 9.47
Period ended 3/31/1996*.............. 9.73 0.13 (0.24) (0.11) (0.13) 9.49
Year ended 11/30/1995................ 8.36 0.43 1.37 1.80 (0.43) 9.73
INVESTOR C SHARES
Six months ended 9/30/2000
(unaudited)........................ $ 9.51 $0.19 $ 0.11 $ 0.30 $(0.19) $ 9.62
Year ended 3/31/2000#................ 10.08 0.37 (0.57) (0.20) (0.37) 9.51
Year ended 3/31/1999................. 10.01 0.37 0.07 0.44 (0.37) 10.08
Year ended 3/31/1998#................ 9.47 0.40 0.54 0.94 0.40 10.01
Year ended 3/31/1997................. 9.49 0.42 (0.02) 0.40 (0.42) 9.47
Period ended 3/31/1996*.............. 9.73 0.14 (0.24) (0.10) (0.14) 9.49
Year ended 11/30/1995................ 8.36 0.43 1.37 1.80 (0.43) 9.73
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
192
<PAGE> 197
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.58% $18,909 0.60%+(a) 4.95%+ 10% 1.04%+
(0.98) 17,787 0.60(a) 4.74 37 1.13
5.39 16,293 0.60(a) 4.57 11 1.00
10.86 6,452 0.60(a) 4.78 20 0.93
4.84 3,095 0.60(a) 4.95 28 0.94
(0.87) 1,593 0.60+ 4.86+ 22 0.99+
22.87 1,293 0.38(a) 5.43 40 0.96
3.46% $ 2,310 0.85%+(a) 4.70%+ 10% 1.29%+
(1.20) 1,528 0.83(a) 4.51 37 1.38
5.20 1,028 0.80(a) 4.37 11 1.25
10.64 609 0.80(a) 4.58 20 1.13
4.62 594 0.80(a) 4.75 28 1.14
(0.94) 448 0.80+ 4.66+ 22 1.19+
22.63 347 0.58(a) 5.23 40 1.16
3.07% $17,765 1.60%+(a) 3.95%+ 10% 2.04%+
(1.90) 20,207 1.54(a) 3.80 37 2.13
4.53 24,656 1.45(a) 3.72 11 2.00
9.96 25,187 1.42(a) 3.96 20 1.75
4.06 23,863 1.35(a) 4.20 28 1.69
(1.12) 28,298 1.35+ 4.11+ 22 1.74+
21.96 30,048 1.13(a) 4.68 40 1.71
3.18% $ 55 1.60%+(a) 3.95%+ 10% 2.04%+
(1.99) 54 1.60(a) 3.74 37 2.13
4.50 3 1.47(a) 3.70 11 2.00
10.07 3 1.33(a) 4.05 20 1.66
4.32 18 1.10(a) 4.45 28 1.44
(1.04) 17 1.14+ 4.32+ 22 1.53+
21.93 2 1.13(a) 4.68 40 1.71
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
193
<PAGE> 198
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SOUTH CAROLINA INTERMEDIATE MUNICIPAL
BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.27 $0.26 $ 0.08 $ 0.34 $(0.26) $ --
Year ended 3/31/2000#................ 10.79 0.51 (0.51) -- (0.51) (0.01)
Year ended 3/31/1999................. 10.79 0.51 0.04 0.55 (0.51) (0.04)
Year ended 3/31/1998................. 10.50 0.52 0.29 0.81 (0.52) 0.00##
Year ended 3/31/1997................. 10.52 0.51 (0.02) 0.49 (0.51) --
Period ended 3/31/1996*.............. 10.69 0.17 (0.17) 0.00 (0.17) --
Year ended 11/30/1995................ 9.76 0.51 0.93 1.44 (0.51) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.27 $0.25 $ 0.07 $ 0.32 $(0.24) $ --
Year ended 3/31/2000#................ 10.79 0.49 (0.51) (0.02) (0.49) (0.01)
Year ended 3/31/1999................. 10.79 0.49 0.04 0.53 (0.49) (0.04)
Year ended 3/31/1998................. 10.50 0.50 0.29 0.79 (0.50) 0.00##
Year ended 3/31/1997................. 10.52 0.49 (0.02) 0.47 (0.49) --
Period ended 3/31/1996*.............. 10.69 0.16 (0.17) (0.01) (0.16) --
Year ended 11/30/1995................ 9.76 0.49 0.93 1.42 (0.49) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.27 $0.21 $ 0.08 $ 0.29 $(0.21) $ --
Year ended 3/31/2000#................ 10.79 0.41 (0.51) (0.10) (0.41) (0.01)
Year ended 3/31/1999................. 10.79 0.43 0.04 0.47 (0.43) (0.04)
Year ended 3/31/1998................. 10.50 0.44 0.29 0.73 (0.44) 0.00##
Year ended 3/31/1997................. 10.52 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996*.............. 10.69 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995................ 9.76 0.46 0.93 1.39 (0.46) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.27 $0.22 $ 0.07 $ 0.29 $(0.21) $ --
Year ended 3/31/2000#................ 10.79 0.40 (0.51) (0.11) (0.40) (0.01)
Year ended 3/31/1999................. 10.79 0.42 0.04 0.46 (0.42) (0.04)
Year ended 3/31/1998................. 10.50 0.44 0.29 0.73 (0.44) 0.00##
Year ended 3/31/1997................. 10.52 0.45 (0.02) 0.43 (0.45) --
Period ended 3/31/1996*.............. 10.69 0.15 (0.17) (0.02) (0.15) --
Year ended 11/30/1995................ 9.76 0.46 0.93 1.39 (0.46) --
</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
November 30.
# Per share net investment income has been calculated using the average shares
method.
## Amount represents less than $0.01 per share.
### Amount represents less than 0.01%.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
194
<PAGE> 199
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.26) $10.35 3.33% $210,575 0.50%+(a) 4.99%+ 3% 0.71%+
(0.52) 10.27 0.09 204,854 0.50(a) 4.88 14 0.74
(0.55) 10.79 5.22 239,195 0.50(a) 4.75 9 0.69
(0.52) 10.79 7.88 253,090 0.50(a) 4.86 16 0.75
(0.51) 10.50 4.71 48,918 0.50(a) 4.80 13 0.79
(0.17) 10.52 0.00### 41,817 0.50+(a) 4.81+ 6 0.82+
(0.51) 10.69 15.02 45,255 0.55(a) 4.92 11 0.75
$(0.24) $10.35 3.20% $ 15,583 0.75%+(a) 4.74%+ 3% 0.96%+
(0.50) 10.27 (0.14) 17,396 0.73(a) 4.65 14 0.99
(0.53) 10.79 5.01 18,729 0.70(a) 4.55 9 0.94
(0.50) 10.79 7.67 13,945 0.70(a) 4.66 16 0.95
(0.49) 10.50 4.51 10,465 0.70(a) 4.60 13 0.99
(0.16) 10.52 (0.07) 14,288 0.70+(a) 4.61+ 6 1.02+
(0.49) 10.69 14.79 14,452 0.75(a) 4.72 11 0.95
$(0.21) $10.35 2.82% $ 6,985 1.50%+(a) 3.99%+ 3% 1.71%+
(0.42) 10.27 (0.82) 7,310 1.41(a) 3.97 14 1.74
(0.47) 10.79 4.39 8,542 1.30(a) 3.95 9 1.69
(0.44) 10.79 7.13 6,819 1.20(a) 4.16 16 1.45
(0.45) 10.50 4.19 5,738 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 6,968 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 6,457 1.05(a) 4.42 11 1.25
$(0.21) $10.35 2.82% $ 1,431 1.50%+(a) 3.99%+ 3% 1.71%+
(0.41) 10.27 (0.91) 2,755 1.50(a) 3.88 14 1.74
(0.46) 10.79 4.36 3,102 1.32(a) 3.93 9 1.69
(0.44) 10.79 7.13 2,698 1.20(a) 4.16 16 1.45
(0.45) 10.50 4.20 5,089 1.00(a) 4.30 13 1.29
(0.15) 10.52 (0.17) 5,409 1.00+(a) 4.31+ 6 1.32+
(0.46) 10.69 14.45 5,527 1.05(a) 4.42 11 1.25
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
195
<PAGE> 200
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SOUTH CAROLINA MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.75 $0.24 $ 0.13 $ 0.37 $(0.24) $ --
Year ended 3/31/2000#................ 10.30 0.46 (0.55) (0.09) (0.46) --
Year ended 3/31/1999................. 10.26 0.49 0.03 0.52 (0.48) --
Year ended 3/31/1998................. 9.79 0.49 0.47 0.96 (0.49) (0.00)##
Year ended 3/31/1997................. 9.77 0.49 0.02 0.51 (0.49) --
Period ended 3/31/1996*.............. 9.99 0.17 (0.22) (0.05) (0.17) --
Year ended 11/30/1995................ 8.65 0.52 1.34 1.86 (0.52) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.75 $0.23 $ 0.13 $ 0.36 $(0.23) $ --
Year ended 3/31/2000#................ 10.30 0.45 (0.55) (0.10) (0.45) --
Year ended 3/31/1999................. 10.26 0.44 0.06 0.50 (0.46) --
Year ended 3/31/1998................. 9.79 0.47 0.47 0.94 (0.47) (0.00)##
Year ended 3/31/1997................. 9.77 0.47 0.02 0.49 (0.47) --
Period ended 3/31/1996*.............. 9.99 0.16 (0.22) (0.06) (0.16) --
Year ended 11/30/1995................ 8.65 0.50 1.34 1.84 (0.50) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.75 $0.20 $ 0.13 $ 0.33 $(0.20) $ --
Year ended 3/31/2000#................ 10.30 0.38 (0.55) (0.17) (0.38) --
Year ended 3/31/1999................. 10.26 0.39 0.04 0.43 (0.39) --
Year ended 3/31/1998................. 9.79 0.40 0.47 0.87 (0.40) (0.00)##
Year ended 3/31/1997................. 9.77 0.42 0.02 0.44 (0.42) --
Period ended 3/31/1996*.............. 9.99 0.14 (0.22) (0.08) (0.14) --
Year ended 11/30/1995................ 8.65 0.45 1.34 1.79 (0.45) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.75 $0.20 $ 0.13 $ 0.33 $(0.20) $ --
Year ended 3/31/2000#................ 10.30 0.38 (0.55) (0.17) (0.38) --
Year ended 3/31/1999#................ 10.26 0.39 0.04 0.43 (0.39) --
Year ended 3/31/1998................. 9.79 0.42 0.47 0.89 (0.42) (0.00)##
Year ended 3/31/1997................. 9.77 0.44 0.02 0.46 (0.44) --
Period ended 3/31/1996*.............. 9.99 0.15 (0.22) (0.07) (0.15) --
Year ended 11/30/1995................ 8.65 0.45 1.34 1.79 (0.45) --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
196
<PAGE> 201
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.24) $ 9.88 3.90% $26,152 0.60%+(a) 4.99%+ 0% 1.07%+
(0.46) 9.75 (0.72) 28,784 0.60(a) 4.79 71 1.28
(0.48) 10.30 5.13 12,793 0.60 4.62 3 1.18
(0.49) 10.26 10.04 9,455 0.60(a) 4.79 9 0.99
(0.49) 9.79 5.32 5,113 0.60(a) 4.99 30 1.00
(0.17) 9.77 (0.57) 2,058 0.60+(a) 4.96+ 20 1.13+
(0.52) 9.99 21.99 1,782 0.40(a) 5.44 13 1.08
$(0.23) $ 9.88 3.77% $ 1,018 0.85%+(a) 4.74%+ 0% 1.32%+
(0.45) 9.75 (0.95) 906 0.83(a) 4.56 71 1.53
(0.46) 10.30 4.92 1,060 0.80 4.42 3 1.43
(0.47) 10.26 9.82 1,517 0.80(a) 4.59 9 1.19
(0.47) 9.79 5.12 811 0.80(a) 4.79 30 1.20
(0.16) 9.77 (0.64) 1,219 0.80+(a) 4.76+ 20 1.33+
(0.50) 9.99 21.74 1,238 0.60(a) 5.24 13 1.28
$(0.20) $ 9.88 3.38% $ 8,445 1.60%+(a) 3.99%+ 0% 2.07%+
(0.38) 9.75 (1.65) 8,974 1.54(a) 3.85 71 2.28
(0.39) 10.30 4.25 10,905 1.44 3.78 3 2.18
(0.40) 10.26 9.15 10,394 1.42(a) 3.97 9 1.81
(0.42) 9.79 4.54 12,104 1.35(a) 4.24 30 1.75
(0.14) 9.77 (0.82) 12,991 1.35+(a) 4.21+ 20 1.88+
(0.45) 9.99 21.08 12,670 1.15(a) 4.69 13 1.83
$(0.20) $ 9.88 3.38% $ 43 1.60%+(a) 3.99%+ 0% 2.07%+
(0.38) 9.75 (1.71) 41 1.60(a) 3.79 71 2.28
(0.39) 10.30 4.23 77 1.44 3.78 3 2.18
(0.42) 10.26 9.29 28 1.33(a) 4.06 9 1.72
(0.44) 9.79 4.80 247 1.10(a) 4.49 30 1.50
(0.15) 9.77 (0.76) 264 1.17+(a) 4.39+ 20 1.70+
(0.45) 9.99 21.01 20 1.15(a) 4.69 13 1.83
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
197
<PAGE> 202
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TENNESSEE INTERMEDIATE
MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.91 $0.24 $ 0.08 $ 0.32 $(0.24) $ --
Year ended 3/31/2000#.......... 10.46 0.47 (0.54) (0.07) (0.47) (0.01)
Year ended 3/31/1999........... 10.40 0.47 0.06 0.53 (0.47) --
Year ended 3/31/1998........... 10.08 0.47 0.32 0.79 (0.47) --
Year ended 3/31/1997........... 10.09 0.46 (0.01) 0.45 (0.46) --
Period ended 3/31/1996*........ 10.23 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995.......... 9.30 0.46 0.93 1.39 (0.46) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.91 $0.23 $ 0.08 $ 0.31 $(0.23) $ --
Year ended 3/31/2000#.......... 10.46 0.44 (0.54) (0.10) (0.44) (0.01)
Year ended 3/31/1999........... 10.40 0.45 0.06 0.51 (0.45) --
Year ended 3/31/1998........... 10.08 0.45 0.32 0.77 (0.45) --
Year ended 3/31/1997........... 10.09 0.44 (0.01) 0.43 (0.44) --
Period ended 3/31/1996*........ 10.23 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995.......... 9.30 0.44 0.93 1.37 (0.44) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.91 $0.19 $ 0.08 $ 0.27 $(0.19) $ --
Year ended 3/31/2000#.......... 10.46 0.38 (0.54) (0.16) (0.38) (0.01)
Year ended 3/31/1999........... 10.40 0.38 0.06 0.44 (0.38) --
Year ended 3/31/1998........... 10.08 0.40 0.32 0.72 (0.40) --
Year ended 3/31/1997........... 10.09 0.41 (0.01) 0.40 (0.41) --
Period ended 3/31/1996*........ 10.23 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995.......... 9.30 0.41 0.93 1.34 (0.41) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.87 $0.23 $ 0.04 $ 0.27 $(0.19) $ --
Year ended 3/31/2000#.......... 10.45 0.39 (0.57) (0.18) (0.39) (0.01)
Year ended 3/31/1999........... 10.40 0.39 0.05 0.44 (0.39) --
Year ended 3/31/1998........... 10.08 0.40 0.32 0.72 (0.40) --
Year ended 3/31/1997........... 10.09 0.42 (0.01) 0.41 (0.42) --
Period ended 3/31/1996*........ 10.23 0.14 (0.14) 0.00 (0.14) --
Year ended 11/30/1995.......... 9.30 0.41 0.93 1.34 (0.41) --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
198
<PAGE> 203
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.24) $ 9.99 3.27% $38,009 0.50%+ 4.83%+ 5% 0.89%+
(0.48) 9.91 (0.67) 37,736 0.50(a) 4.62 49 0.94
(0.47) 10.46 5.18 42,826 0.50 4.48 22 0.85
(0.47) 10.40 7.99 39,091 0.50(a) 4.58 38 0.84
(0.46) 10.08 4.54 8,869 0.50(a) 4.55 28 0.93
(0.15) 10.09 0.12 8,408 0.50+ 4.51+ 3 1.02+
(0.46) 10.23 15.22 7,160 0.57(a) 4.65 34 0.92
$(0.23) $ 9.99 3.14% $ 8,226 0.75%+ 4.58%+ 5% 1.14%+
(0.45) 9.91 (0.90) 7,810 0.73(a) 4.39 49 1.19
(0.45) 10.46 4.97 9,242 0.70 4.28 22 1.10
(0.45) 10.40 7.77 8,061 0.70(a) 4.38 38 1.04
(0.44) 10.08 4.33 6,840 0.70(a) 4.35 28 1.13
(0.15) 10.09 0.06 7,439 0.70+ 4.31+ 3 1.22+
(0.44) 10.23 15.00 7,573 0.77(a) 4.45 34 1.12
$(0.19) $ 9.99 2.76% $ 1,524 1.50%+ 3.83%+ 5% 1.89%+
(0.39) 9.91 (1.58) 1,783 1.41(a) 3.71 49 1.94
(0.38) 10.46 4.34 3,007 1.30 3.68 22 1.85
(0.40) 10.40 7.24 2,924 1.20(a) 3.88 38 1.54
(0.41) 10.08 4.02 3,050 1.00(a) 4.05 28 1.43
(0.14) 10.09 (0.04) 3,528 1.00+ 4.01+ 3 1.52+
(0.41) 10.23 14.65 3,573 1.07(a) 4.15 34 1.42
$(0.19) $ 9.95 2.75% $ 3 1.50%+ 3.83%+ 5% 1.89%+
(0.40) 9.87 (1.96) 3 1.50(a) 3.62 49 1.94
(0.39) 10.45 4.28 33 1.11 3.87 22 1.85
(0.40) 10.40 7.29 3 1.20(a) 3.88 38 1.54
(0.42) 10.08 4.08 2 1.00(a) 4.05 28 1.43
(0.14) 10.09 (0.02) 2 1.00+ 4.01+ 3 1.52+
(0.41) 10.23 14.62 2 1.07(a) 4.15 34 1.42
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
199
<PAGE> 204
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET NET ASSET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT VALUE
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME END OF PERIOD
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TENNESSEE MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.68 $0.25 $ 0.12 $ 0.37 $(0.24) $ 9.81
Year ended 3/31/2000#.......... 10.30 0.47 (0.62) (0.15) (0.47) 9.68
Year ended 3/31/1999........... 10.22 0.48 0.08 0.56 (0.48) 10.30
Year ended 3/31/1998........... 9.70 0.48 0.52 1.00 (0.48) 10.22
Year ended 3/31/1997........... 9.68 0.48 0.02 0.50 (0.48) 9.70
Period ended 3/31/1996*........ 9.87 0.16 (0.19) (0.03) (0.16) 9.68
Year ended 11/30/1995.......... 8.58 0.52 1.29 1.81 (0.52) 9.87
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.68 $0.22 $ 0.14 $ 0.36 $(0.23) $ 9.81
Year ended 3/31/2000#.......... 10.30 0.43 (0.62) (0.19) (0.43) 9.68
Year ended 3/31/1999#.......... 10.22 0.43 0.11 0.54 (0.46) 10.30
Year ended 3/31/1998........... 9.70 0.46 0.52 0.98 (0.46) 10.22
Year ended 3/31/1997........... 9.68 0.46 0.02 0.48 (0.46) 9.70
Period ended 3/31/1996*........ 9.87 0.15 (0.19) (0.04) (0.15) 9.68
Year ended 11/30/1995.......... 8.58 0.50 1.29 1.79 (0.50) 9.87
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.68 $0.20 $ 0.13 $ 0.33 $(0.20) $ 9.81
Year ended 3/31/2000 #......... 10.30 0.38 (0.62) (0.24) (0.38) 9.68
Year ended 3/31/1999........... 10.22 0.39 0.08 0.47 (0.39) 10.30
Year ended 3/31/1998........... 9.70 0.40 0.52 0.92 (0.40) 10.22
Year ended 3/31/1997........... 9.68 0.40 0.02 0.42 (0.40) 9.70
Period ended 3/31/1996*........ 9.87 0.14 (0.19) (0.05) (0.14) 9.68
Year ended 11/30/1995.......... 8.58 0.45 1.29 1.74 (0.45) 9.87
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $ 9.68 $0.19 $ 0.14 $ 0.33 $(0.20) $ 9.81
Year ended 3/31/2000#.......... 10.30 0.36 (0.62) (0.26) (0.36) 9.68
Year ended 3/31/1999#.......... 10.22 0.38 0.09 0.47 (0.39) 10.30
Year ended 3/31/1998#.......... 9.70 0.40 0.52 0.92 (0.40) 10.22
Year ended 3/31/1997........... 9.68 0.43 0.02 0.45 (0.43) 9.70
Period ended 3/31/1996*........ 9.87 0.14 (0.19) (0.05) (0.14) 9.68
Year ended 11/30/1995.......... 8.58 0.45 1.29 1.74 (0.45) 9.87
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
200
<PAGE> 205
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES ---------------
RATIO OF INCLUDING RATIO OF RATIO OF
NET ASSETS OPERATING INTEREST NET INVESTMENT OPERATING
END OF EXPENSES TO EXPENSE TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET AVERAGE NET TO AVERAGE TURNOVER AVERAGE
RETURN++ (000) ASSETS ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
3.91% $4,398 0.60%+ (a) 5.01%+ 4% 1.68%+
(1.36) 5,114 0.60 -- 4.83 34 2.14
5.53 5,762 0.60 -- 4.61 40 1.55
10.45 4,559 0.60 (a) 4.74 19 1.20
5.23 2,594 0.60 (a) 4.91 31 1.24
(0.30) 975 0.60+ 0.61%+ 4.92+ 2 1.47+
21.52 768 0.40 (a) 5.49 45 1.27
3.78% $1,677 0.85%+ (a) 4.76%+ 4% 1.93%+
(1.59) 1,357 0.83 -- 4.60 34 2.39
5.32 484 0.80 -- 4.41 40 1.80
10.23 1,440 0.80 4.54 19 1.40
5.02 1,018 0.80 (a) 4.71 31 1.44
(0.37) 973 0.80+ 0.81%+ 4.72+ 2 1.67+
21.28 203 0.60 (a) 5.29 45 1.47
3.40% $3,680 1.60%+ (a) 4.01%+ 4% 2.68%+
(2.28) 4,001 1.54 -- 3.89 34 3.14
4.64 4,718 1.45 -- 3.76 40 2.55
9.56 4,915 1.42 (a) 3.92 19 2.02
4.45 5,319 1.35 (a) 4.16 31 1.99
(0.55) 6,761 1.35+ 1.36%+ 4.17+ 2 2.22+
20.63 6,619 1.15 (a) 4.74 45 2.02
3.40% $ 152 1.60%+ (a) 4.01%+ 4% 2.68%+
(2.35) 143 1.60 -- 3.83 34 3.14
4.62 68 1.46 -- 3.75 40 2.55
9.65 42 1.33 (a) 4.01 19 1.93
4.71 38 1.10 (a) 4.41 31 1.74
(0.49) 37 1.18+ 1.18%+ 4.34+ 2 2.05+
20.62 64 1.15 (a) 4.74 45 2.02
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
201
<PAGE> 206
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TEXAS INTERMEDIATE MUNICIPAL
BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited).................. $10.00 $0.25 $ 0.07 $ 0.32 $(0.25) $ --
Year ended 3/31/2000........... 10.48 0.49 (0.48) 0.01 (0.49) (0.00)##
Year ended 3/31/1999........... 10.50 0.49 0.02 0.51 (0.49) (0.04)
Year ended 3/31/1998........... 10.18 0.49 0.32 0.81 (0.49) --
Year ended 3/31/1997........... 10.21 0.47 (0.03) 0.44 (0.47) --
Period ended 3/31/1996*........ 10.36 0.16 (0.15) 0.01 (0.16) --
Year ended 11/30/1995.......... 9.53 0.46 0.83 1.29 (0.46) --
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited).................. $10.00 $0.24 $ 0.07 $ 0.31 $(0.24) $ --
Year ended 3/31/2000........... 10.48 0.47 (0.48) (0.01) (0.47) (0.00)##
Year ended 3/31/1999........... 10.50 0.47 0.02 0.49 (0.47) (0.04)
Year ended 3/31/1998........... 10.18 0.47 0.32 0.79 (0.47) --
Year ended 3/31/1997........... 10.21 0.45 (0.03) 0.42 (0.45) --
Period ended 3/31/1996*........ 10.36 0.15 (0.15) 0.00 (0.15) --
Year ended 11/30/1995.......... 9.53 0.44 0.83 1.27 (0.44) --
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited).................. $10.00 $0.20 $ 0.07 $ 0.27 $(0.20) $ --
Year ended 3/31/2000........... 10.48 0.40 (0.48) (0.08) (0.40) (0.00)##
Year ended 3/31/1999........... 10.50 0.41 0.02 0.43 (0.41) (0.04)
Year ended 3/31/1998........... 10.18 0.42 0.32 0.74 (0.42) --
Year ended 3/31/1997........... 10.21 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996*........ 10.36 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995.......... 9.53 0.41 0.83 1.24 (0.41) --
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited).................. $10.00 $0.20 $ 0.07 $ 0.27 $(0.20) $ --
Year ended 3/31/2000........... 10.48 0.38 (0.48) (0.10) (0.38) (0.00)##
Period ended 3/31/1999#........ 10.50 0.40 0.02 0.42 (0.40) (0.04)
Year ended 3/31/1998........... 10.18 0.42 0.32 0.74 (0.42) --
Year ended 3/31/1997........... 10.21 0.42 (0.03) 0.39 (0.42) --
Period ended 3/31/1996*........ 10.36 0.14 (0.15) (0.01) (0.14) --
Year ended 11/30/1995.......... 9.53 0.41 0.83 1.24 (0.41) --
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
202
<PAGE> 207
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.25) $10.07 3.27% $293,033 0.50%+(a) 5.05%+ 3% 0.71%+
(0.49) 10.00 0.17 326,323 0.50(a) 4.84 33 0.72
(0.53) 10.48 4.98 391,431 0.50 4.66 22 0.68
(0.49) 10.50 8.09 385,770 0.50 4.74 19 0.75
(0.47) 10.18 4.37 24,764 0.50 4.59 34 0.84
(0.16) 10.21 0.05 27,176 0.50+ 4.52+ 11 0.89+
(0.46) 10.36 13.83 26,382 0.57(a) 4.62 64 0.83
$(0.24) $10.07 3.15% $ 3,498 0.75%+(a) 4.80%+ 3% 0.96%+
(0.47) 10.00 (0.06) 6,075 0.73(a) 4.61 33 0.97
(0.51) 10.48 4.77 6,909 0.70 4.46 22 0.93
(0.47) 10.50 7.87 2,666 0.70 4.54 19 0.95
(0.45) 10.18 4.17 909 0.70 4.39 34 1.04
(0.15) 10.21 (0.02) 801 0.70+ 4.32+ 11 1.09+
(0.44) 10.36 13.60 806 0.77(a) 4.42 64 1.03
$0.20 $10.07 2.76% $ 2,049 1.50%+(a) 4.05%+ 3% 1.71%+
(0.40) 10.00 (0.74) 2,005 1.42(a) 3.92 33 1.72
(0.45) 10.48 4.15 2,137 1.30 3.86 22 1.68
(0.42) 10.50 7.34 2,184 1.20 4.04 19 1.45
(0.42) 10.18 3.87 2,182 1.00 4.09 34 1.34
(0.14) 10.21 (0.12) 2,845 1.00+ 4.02+ 11 1.39+
(0.41) 10.36 13.27 3,136 1.07(a) 4.12 64 1.33
$(0.20) $10.07 2.76% $ 3 1.50%+(a) 4.05%+ 3% 1.71%+
(0.38) 10.00 (0.86) 3 1.50(a) 3.84 33 1.72
(0.44) 10.48 4.14 3 1.33 3.83 22 1.68
(0.42) 10.50 7.34 293 1.20 4.04 19 1.45
(0.42) 10.18 3.87 591 1.00 4.09 34 1.34
(0.14) 10.21 (0.12) 569 1.00+ 4.02+ 11 1.39+
(0.41) 10.36 13.27 570 1.07(a) 4.12 64 1.33
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
203
<PAGE> 208
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET NET ASSET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT VALUE
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME END OF PERIOD
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TEXAS MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.56 $0.25 $ 0.08 $ 0.33 $(0.25) $ 9.64
Year ended 3/31/2000#................ 10.11 0.48 (0.55) (0.07) (0.48) 9.56
Year ended 3/31/1999................. 10.04 0.46 0.07 0.53 (0.46) 10.11
Year ended 3/31/1998#................ 9.48 0.48 0.56 1.04 (0.48) 10.04
Year ended 3/31/1997................. 9.49 0.48 (0.01) 0.47 (0.48) 9.48
Period ended 3/31/1996*.............. 9.70 0.16 (0.21) (0.05) (0.16) 9.49
Year ended 11/30/1995................ 8.39 0.50 1.31 1.81 (0.50) 9.70
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.56 $0.24 $ 0.08 $ 0.32 $(0.24) $ 9.64
Year ended 3/31/2000#................ 10.11 0.45 (0.55) (0.10) (0.45) 9.56
Year ended 3/31/1999................. 10.04 0.44 0.07 0.51 (0.44) 10.11
Year ended 3/31/1998#................ 9.48 0.46 0.56 1.02 (0.46) 10.04
Year ended 3/31/1997................. 9.49 0.46 (0.01) 0.45 (0.46) 9.48
Period ended 3/31/1996*.............. 9.70 0.15 (0.21) (0.06) (0.15) 9.49
Year ended 11/30/1995................ 8.39 0.49 1.31 1.80 (0.49) 9.70
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.56 $0.20 $ 0.08 $ 0.28 $(0.20) $ 9.64
Year ended 3/31/2000#................ 10.11 0.39 (0.55) (0.16) (0.39) 9.56
Year ended 3/31/1999................. 10.04 0.38 0.07 0.45 (0.38) 10.11
Year ended 3/31/1998#................ 9.48 0.39 0.56 0.95 (0.39) 10.04
Year ended 3/31/1997................. 9.49 0.40 (0.01) 0.39 (0.40) 9.48
Period ended 3/31/1996*.............. 9.70 0.13 (0.21) (0.08) (0.13) 9.49
Year ended 11/30/1995................ 8.39 0.43 1.31 1.74 (0.43) 9.70
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $ 9.56 $0.20 $ 0.08 $ 0.28 $(0.20) $ 9.64
Year ended 3/31/2000#................ 10.11 0.38 (0.55) (0.17) (0.38) 9.56
Year ended 3/31/1999................. 10.04 0.38 0.07 0.45 (0.38) 10.11
Year ended 3/31/1998#................ 9.48 0.40 0.56 0.96 (0.40) 10.04
Year ended 3/31/1997................. 9.49 0.43 (0.01) 0.42 (0.43) 9.48
Period ended 3/31/1996*.............. 9.70 0.14 (0.21) (0.07) (0.14) 9.49
Year ended 11/30/1995................ 8.39 0.43 1.31 1.74 (0.43) 9.70
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
204
<PAGE> 209
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
NET ASSETS OPERATING NET INVESTMENT OPERATING
END OF EXPENSES TO INCOME (LOSS) PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.49% $ 7,570 0.60%+ 5.18%+ 0% 1.54%+
(0.63) 7,868 0.60(a) 4.95 39 1.75
5.41 9,393 0.60 4.59 34 1.25
11.12 7,615 0.60(a) 4.83 33 1.07
5.00 5,675 0.60(a) 4.99 52 1.03
(0.55) 5,138 0.60+ 4.92+ 6 1.11+
22.09 4,613 0.39(a) 5.45 50 1.05
3.36% $ 325 0.85%+ 4.93%+ 0% 1.79%+
(0.86) 333 0.83(a) 4.72 39 2.00
5.20 401 0.80 4.39 34 1.50
10.90 419 0.80(a) 4.63 33 1.27
4.78 371 0.80(a) 4.79 52 1.23
(0.62) 317 0.80+ 4.72+ 6 1.31+
21.85 351 0.59(a) 5.25 50 1.25
2.97% $ 5,266 1.60%+ 4.18%+ 0% 2.54%+
(1.56) 5,569 1.54(a) 4.01 39 2.75
4.53 6,828 1.45 3.74 34 2.25
10.23 8,804 1.42(a) 4.01 33 1.89
4.21 10,090 1.35(a) 4.24 52 1.78
(0.80) 11,838 1.35+ 4.17+ 6 1.86+
21.19 12,587 1.14(a) 4.70 50 1.80
2.97% $ 85 1.60%+ 4.18%+ 0% 2.54%+
(1.62) 84 1.60(a) 3.95 39 2.75
4.51 84 1.46 3.73 34 2.25
10.31 80 1.33(a) 4.10 33 1.80
4.47 73 1.10(a) 4.49 52 1.53
(0.74) 70 1.16+ 4.36+ 6 1.67+
21.15 70 1.14(a) 4.70 50 1.80
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
205
<PAGE> 210
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET FROM NET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME GAINS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VIRGINIA INTERMEDIATE MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.51 $0.25 $ 0.08 $ 0.33 $(0.25) $ --
Year ended 3/31/2000#................ 10.98 0.50 (0.47) 0.03 (0.50) (0.00)##
Year ended 3/31/1999................. 10.92 0.50 0.06 0.56 (0.50) --
Year ended 3/31/1998................. 10.59 0.51 0.33 0.84 (0.51) --
Year ended 3/31/1997................. 10.69 0.51 (0.10) 0.41 (0.51) --
Period ended 3/31/1996*.............. 10.83 0.17 (0.14) 0.03 (0.17) --
Year ended 11/30/1995................ 9.94 0.51 0.89 1.40 (0.51) (0.00)##
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.51 $0.24 $ 0.08 $ 0.32 $(0.24) $ --
Year ended 3/31/2000#................ 10.98 0.47 (0.47) 0.00 (0.47) (0.00)##
Year ended 3/31/1999#................ 10.92 0.47 0.07 0.54 (0.48) --
Year ended 3/31/1998................. 10.59 0.49 0.33 0.82 (0.49) --
Year ended 3/31/1997................. 10.69 0.49 (0.10) 0.39 (0.49) --
Period ended 3/31/1996*.............. 10.83 0.16 (0.14) 0.02 (0.16) --
Year ended 11/30/1995................ 9.94 0.49 0.89 1.38 (0.49) (0.00)##
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.51 $0.20 $ 0.08 $ 0.28 $(0.20) $ --
Year ended 3/31/2000#................ 10.98 0.40 (0.47) (0.07) (0.40) (0.00)##
Year ended 3/31/1999................. 10.92 0.41 0.06 0.47 (0.41) --
Year ended 3/31/1998#................ 10.59 0.44 0.33 0.77 (0.44) --
Year ended 3/31/1997................. 10.69 0.46 (0.10) 0.36 (0.46) --
Period ended 3/31/1996*.............. 10.83 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995................ 9.94 0.46 0.89 1.35 (0.46) (0.00)##
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $10.51 $0.20 $ 0.08 $ 0.28 $(0.20) $ --
Year ended 3/31/2000#................ 10.98 0.39 (0.47) (0.08) (0.39) (0.00)##
Year ended 3/31/1999#................ 10.92 0.39 0.08 0.47 (0.41) --
Year ended 3/31/1998#................ 10.59 0.44 0.33 0.77 (0.44) --
Year ended 3/31/1997................. 10.69 0.46 (0.10) 0.36 (0.46) --
Period ended 3/31/1996*.............. 10.83 0.15 (0.14) 0.01 (0.15) --
Year ended 11/30/1995................ 9.94 0.46 0.89 1.35 (0.46) (0.00)##
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
## Amount represents less than $0.01 per share.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
206
<PAGE> 211
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
AND/OR EXPENSE
REIMBURSEMENTS
---------------
RATIO OF RATIO OF RATIO OF
TOTAL NET ASSETS OPERATING NET INVESTMENT OPERATING
DIVIDENDS NET ASSET END OF EXPENSES TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
AND VALUE TOTAL PERIOD AVERAGE NET TO AVERAGE TURNOVER AVERAGE
DISTRIBUTIONS END OF PERIOD RETURN++ (000) ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.25) $10.59 3.30% $244,005 0.50%+(a) 4.79%+ 7% 0.70%+
(0.50) 10.51 0.29 228,698 0.50(a) 4.66 23 0.73
(0.50) 10.98 5.21 227,299 0.50(a) 4.54 5 0.70
(0.51) 10.92 8.12 170,969 0.50(a) 4.77 21 0.74
(0.51) 10.59 3.92 148,701 0.50(a) 4.79 20 0.74
(0.17) 10.69 0.27 155,464 0.50+(a) 4.72+ 2 0.76+
(0.51) 10.83 14.39 157,252 0.56(a) 4.87 22 0.74
$(0.24) $10.59 3.17% $ 43,675 0.75%+(a) 4.54%+ 7% 0.95%+
(0.47) 10.51 0.06 46,663 0.73(a) 4.43 23 0.98
(0.48) 10.98 5.00 56,733 0.70(a) 4.34 5 0.95
(0.49) 10.92 7.91 54,080 0.70(a) 4.57 21 0.94
(0.49) 10.59 3.71 55,791 0.70(a) 4.59 20 0.94
(0.16) 10.69 0.20 68,003 0.70+(a) 4.52+ 2 0.96+
(0.49) 10.83 14.16 73,253 0.76(a) 4.67 22 0.94
$(0.20) $10.59 2.69% $ 8,663 1.50%+(a) 3.79%+ 7% 1.70%+
(0.40) 10.51 (0.63) 9,073 1.41(a) 3.75 23 1.73
(0.41) 10.98 4.38 10,296 1.30(a) 3.74 5 1.70
(0.44) 10.92 7.37 9,643 1.20(a) 4.07 21 1.44
(0.46) 10.59 3.40 10,516 1.00(a) 4.29 20 1.24
(0.15) 10.69 0.10 11,926 1.00+(a) 4.22+ 2 1.26+
(0.46) 10.83 13.82 12,163 1.06(a) 4.37 22 1.24
$(0.20) $10.59 2.69% $ 708 1.50%+(a) 3.79%+ 7% 1.70%+
(0.39) 10.51 (0.71) 759 1.50(a) 3.66 23 1.73
(0.41) 10.98 4.36 1,100 1.34(a) 3.70 5 1.70
(0.44) 10.92 7.37 1,949 1.20(a) 4.07 21 1.44
(0.46) 10.59 3.40 6,463 1.00(a) 4.29 20 1.24
(0.15) 10.69 0.10 6,909 1.00+(a) 4.22+ 2 1.26+
(0.46) 10.83 13.82 7,152 1.06(a) 4.37 22 1.24
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
207
<PAGE> 212
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
For a share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET REALIZED NET INCREASE/ DIVIDENDS
VALUE NET AND UNREALIZED (DECREASE) IN FROM NET NET ASSET
BEGINNING INVESTMENT GAIN/(LOSS) ON NET ASSET VALUE INVESTMENT VALUE
OF PERIOD INCOME/(LOSS) INVESTMENTS FROM OPERATIONS INCOME END OF PERIOD
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VIRGINIA MUNICIPAL BOND
PRIMARY A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.45 $0.24 $ 0.08 $ 0.32 $(0.24) $9.53
Year ended 3/31/2000#................ 9.99 0.46 (0.54) (0.08) (0.46) 9.45
Year ended 3/31/1999................. 9.95 0.47 0.04 0.51 (0.47) 9.99
Year ended 3/31/1998................. 9.40 0.47 0.55 1.02 (0.47) 9.95
Year ended 3/31/1997................. 9.38 0.48 0.02 0.50 (0.48) 9.40
Period ended 3/31/1996 *............. 9.62 0.16 (0.24) (0.08) (0.16) 9.38
Year ended 11/30/1995................ 8.29 0.51 1.33 1.84 (0.51) 9.62
INVESTOR A SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.44 $0.24 $ 0.07 $ 0.31 $(0.23) $9.52
Year ended 3/31/2000#................ 9.99 0.39 (0.55) (0.16) (0.39) 9.44
Year ended 3/31/1999#................ 9.95 0.45 0.04 0.49 (0.45) 9.99
Year ended 3/31/1998#................ 9.40 0.45 0.55 1.00 (0.45) 9.95
Year ended 3/31/1997................. 9.38 0.46 0.02 0.48 (0.46) 9.40
Period ended 3/31/1996*.............. 9.62 0.16 (0.24) (0.08) (0.16) 9.38
Year ended 11/30/1995................ 8.29 0.49 1.33 1.82 (0.49) 9.62
INVESTOR B SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.45 $0.20 $ 0.08 $ 0.28 $(0.20) $9.53
Year ended 3/31/2000#................ 9.99 0.38 (0.54) (0.16) (0.38) 9.45
Year ended 3/31/1999................. 9.95 0.38 0.04 0.42 (0.38) 9.99
Year ended 3/31/1998#................ 9.40 0.39 0.55 0.94 (0.39) 9.95
Year ended 3/31/1997................. 9.38 0.41 0.02 0.43 (0.41) 9.40
Period ended 3/31/1996*.............. 9.62 0.14 (0.24) (0.10) (0.14) 9.38
Year ended 11/30/1995................ 8.29 0.44 1.33 1.77 (0.44) 9.62
INVESTOR C SHARES
Six months ended 9/30/2000#
(unaudited)........................ $9.45 $0.20 $ 0.08 $ 0.28 $(0.20) $9.53
Year ended 3/31/2000#................ 9.99 0.38 (0.54) (0.16) (0.38) 9.45
Year ended 3/31/1999................. 9.95 0.37 0.04 0.41 (0.37) 9.99
Year ended 3/31/1998#................ 9.40 0.40 0.55 0.95 (0.40) 9.95
Year ended 3/31/1997................. 9.38 0.43 0.02 0.45 (0.43) 9.40
Period ended 3/31/1996*.............. 9.62 0.14 (0.24) (0.10) (0.14) 9.38
Year ended 11/30/1995................ 8.29 0.44 1.33 1.77 (0.44) 9.62
</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
November 30.
# Per share net investment income has been calculated using the monthly
average shares method.
(a) The effect of interest expense on the operating expense ratio was less than
0.01%.
SEE NOTES TO FINANCIAL STATEMENTS.
208
<PAGE> 213
NATIONS FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
WITHOUT WAIVERS
RATIO OF AND/OR EXPENSE
OPERATING REIMBURSEMENTS
EXPENSES ---------------
RATIO OF INCLUDING RATIO OF RATIO OF
NET ASSETS OPERATING INTEREST NET INVESTMENT OPERATING
END OF EXPENSES TO EXPENSE TO INCOME/(LOSS) PORTFOLIO EXPENSES TO
TOTAL PERIOD AVERAGE NET AVERAGE NET TO AVERAGE TURNOVER AVERAGE
RETURN++ (000) ASSETS ASSETS NET ASSETS RATE NET ASSETS
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
3.48% $18,231 0.60%+ -- 5.16%+ 7% 1.15%+
0.69 16,378 0.60 -- 4.87 21 1.35
5.18 12,992 0.60 (a) 4.66 11 1.11
11.11 11,026 0.59 (a) 4.86 9 0.96
5.44 5,726 0.60 (a) 5.10 37 0.98
(0.84) 3,296 0.60+ 0.61%+ 5.06+ 8 1.07+
22.63 3,527 0.39 (a) 5.51 16 1.04
3.36% $ 468 0.85%+ -- 4.91%+ 7% 1.40%+
1.02 590 0.83 -- 4.64 21 1.60
4.98 965 0.80 (a) 4.46 11 1.36
10.88 1,222 0.79 (a) 4.66 9 1.16
5.23 726 0.80 (a) 4.90 37 1.18
(0.91) 661 0.80+ 0.81%+ 4.86+ 8 1.27+
22.39 650 0.59 (a) 5.31 16 1.24
2.97% $10,307 1.60%+ -- 4.16%+ 7% 2.15%+
1.61 10,608 1.53 -- 3.94 21 2.35
4.30 13,499 1.45 (a) 3.81 11 2.11
10.21 13,082 1.41 (a) 4.04 9 1.78
4.65 13,972 1.35 (a) 4.35 37 1.73
(1.09) 15,938 1.35+ 1.36%+ 4.31+ 8 1.82+
21.72 16,489 1.14 (a) 4.76 16 1.79
2.95% $ 3 1.60%+ -- 4.16%+ 7% 2.15%+
1.58 3 1.60 -- 3.87 21 2.35
4.21 3 1.45 (a) 3.81 11 2.11
10.31 3 1.32 (a) 4.13 9 1.69
4.92 45 1.10 (a) 4.60 37 1.48
(1.03) 43 1.16+ 1.17%+ 4.50+ 8 1.63+
21.71 34 1.14 (a) 4.76 16 1.79
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
209
<PAGE> 214
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Nations Fund Trust (the "Trust"), Nations Reserves ("Reserves") and Nations
Funds Trust ("Funds Trust") are each registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end investment company. At
September 30, 2000, the Trust offered thirty-four separate portfolios, Reserves
offered sixteen separate portfolios and Funds Trust offered five separate
portfolios. These financial statements pertain only to the municipal bond
portfolios of the Trust, Reserves and Funds Trust: Short-Term Municipal Income
Fund, Intermediate Municipal Bond Fund, Municipal Income Fund, California
Municipal Bond Fund, Florida Intermediate Municipal Bond Fund, Florida Municipal
Bond Fund, Georgia Intermediate Municipal Bond Fund, Georgia Municipal Bond
Fund, Kansas Municipal Income Fund, Maryland Intermediate Municipal Bond Fund,
Maryland Municipal Bond Fund, North Carolina Intermediate Municipal Bond Fund,
North Carolina Municipal Bond Fund, South Carolina Intermediate Municipal Bond
Fund, South Carolina Municipal Bond Fund, Tennessee Intermediate Municipal Bond
Fund, Tennessee Municipal Bond Fund, Texas Intermediate Municipal Bond Fund,
Texas Municipal Bond Fund, Virginia Intermediate Municipal Bond Fund and
Virginia Municipal Bond Fund (each a "Fund" and collectively, the "Funds").
Financial statements for the other portfolios of the Trust, Reserves and Funds
Trust are presented under separate cover. The Funds currently offer four classes
of shares: Primary A Shares, Investor A Shares, Investor B Shares and Investor C
Shares. Shareholders of a Fund have equal voting rights on matters affecting all
shareholders of the Fund. In addition, each class of shares of a Fund has
exclusive voting rights on matters that relate solely to 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 Funds in the preparation of their financial statements.
Securities valuation: Securities are generally valued by an independent pricing
service. These valuations are based upon a matrix system and/or appraisals which
take into consideration such factors as yields, prices, maturities, redemption
features and credit ratings on comparable securities. Certain securities may be
valued based upon quotes provided by one or more principal market makers.
Restricted securities, securities for which market quotations are not readily
available, and certain other assets may be valued under procedures adopted by
the Boards of Trustees. Short-term investments that mature in 60 days or less
are valued at amortized cost, which approximates current market value.
A Fund's municipal holdings may include obligations of issuers that rely in
whole or in part for payment of interest and principal on state specific
revenues, real property taxes, revenues from particular institutions, such as
healthcare institutions, or obligations secured by mortgages on real property.
Consequently, the impact of changes in state law or regulations or the economic
conditions in a particular state should be considered.
Securities transactions and investment income: Securities transactions are
accounted for on trade date. Realized gains and losses are computed based on the
specific identification of securities sold. Interest income, adjusted for
accretion of discounts and amortization of premiums, is earned from settlement
date and recorded on an accrual basis. Dividend income is recorded on
ex-dividend date. Each Fund'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.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after trade date; interest income is not accrued until
settlement date. At the time a Fund enters into such transactions, it instructs
its custodian to segregate assets with a current value at least equal to the
amount of its when-issued or delayed-delivery purchase commitments.
Dividends and distributions to shareholders: It is the policy of each Fund to
declare dividends from net investment income daily and to pay such dividends
monthly. Each Fund will distribute net realized capital gains (including net
short-term capital gains) at least annually after the fiscal year in which the
capital gains were earned, unless offset by any available capital loss
carryforward. Income distributions and capital gain distributions on a Fund
level are determined in accordance with federal income tax regulations which may
differ from accounting principles generally accepted in the United States of
America.
210
<PAGE> 215
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Federal income tax: Each Fund intends to continue to qualify as a regulated
investment company by complying with the applicable requirements of the Internal
Revenue Code of 1986, as amended, and by distributing substantially all of its
earnings to its shareholders. Therefore, no provision is made for federal income
or excise taxes.
Expenses: General expenses of the Trust, Reserves and Funds Trust are allocated
to the Funds based upon their relative net assets or other expense allocation
methodologies determined by the nature of the expense. Expenses directly
attributable to a Fund or class of shares are charged to such Fund or class.
2. INVESTMENT ADVISORY FEE, SUB-ADVISORY FEE, ADMINISTRATION FEE AND RELATED
PARTY TRANSACTIONS
Each of the Trust, Reserves and Funds Trust has entered into an investment
advisory agreement (the "Investment Advisory Agreements") with Banc of America
Advisors, Inc. ("BAAI"), a wholly-owned subsidiary of Bank of America, N.A.
("Bank of America"), which in turn is a wholly-owned banking subsidiary of Bank
of America Corporation, a bank holding company organized as a Delaware
corporation, pursuant to which BAAI provides investment advisory services to the
Funds. Under the terms of the Investment Advisory Agreements, BAAI is entitled
to receive an advisory fee, calculated daily and payable monthly, based on the
following annual rates multiplied by the average daily net assets of each Fund:
<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
Short-Term Municipal Income............... 0.30%
Intermediate Municipal Bond and eight
single-state Intermediate Municipal Bond
Funds................................... 0.40%
Municipal Income and ten single-state
Municipal Bond Funds.................... 0.50%
</TABLE>
Each of the Trust, Reserves and Funds Trust 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 0.07% of
each Fund's average daily net assets.
Stephens Inc. ("Stephens") and BAAI serve as co-administrators of the Trust,
Reserves and Funds Trust. 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 0.22% of each Fund's average daily net
assets. The Bank of New York ("BNY") serves as sub-administrator of the Trust,
Reserves and Funds Trust pursuant to agreements with BAAI. For the six months
ended September 30, 2000, Stephens and BAAI earned 0.06% and 0.11%,
respectively, of the Funds' 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 Fund. Effective August 1, 2000, BAAI and/or the sub-adviser
and Stephens agreed to reimburse expenses and/or waive fees until July 31, 2001
to the extent that total expenses (excluding shareholder servicing and
distribution fees), as a percentage of the respective Fund's average daily net
assets, exceed the following annual rates:
<TABLE>
<CAPTION>
ANNUAL RATE
-----------
<S> <C>
Short-Term Municipal Income............... 0.40%
Intermediate Municipal Bond and eight
single-state Intermediate Municipal Bond
Funds................................... 0.50%
Municipal Income and ten single-state
Municipal Bond Funds.................... 0.60%
</TABLE>
BNY serves as the custodian of the Trust's, Reserves' and Funds Trust's assets.
No officer, director or employee of Bank of America, BAAI or BACAP, or any
affiliate thereof, receives any compensation from the Trust, Reserves and Funds
Trust for serving as Trustee or Officer of the Trust, Reserves and Funds Trust.
PFPC Inc. ("PFPC") serves as the transfer agent for the Funds' shares. Bank of
America serves as the sub-transfer agent for the Primary A Shares of the Funds.
For the six months ended September 30, 2000, Bank of America earned
approximately $39,908 for providing such services.
Stephens also serves as distributor of the Funds' shares. For the six months
ended September 30, 2000, the Funds were informed that the distributor received
$13,426 in front-end sales charges for sales of Investor A Shares and $90,019 in
contingent deferred sales charges from redemption of shares which were subject
to such charges. A substantial portion of these fees is paid to affiliates of
Bank of America.
The Trust's, Reserves' and Funds Trust's eligible Trustees may participate in
non-qualified deferred compensation and retirement plans which may be terminated
at any time. All benefits provided under these plans are unfunded and any
payments to plan participants are paid solely out of the Funds' assets. Income
earned on each plan participant's deferral account is tied to the rate of return
of the eligible mutual funds selected by the participants or, if no funds are
selected, to the rate of return of Nations Treasury Fund, a portfolio of Nations
211
<PAGE> 216
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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 Funds have made daily investments of cash balances in Nations Municipal
Reserves, a portfolio of Reserves, pursuant to an exemptive order received from
the Securities and Exchange Commission. For the six months ended September 30,
2000, the Funds earned $1,123,459 in the aggregate from such investments, which
is included in interest income.
A significant portion of each Fund's Primary A Shares represents investments by
fiduciary accounts over which Bank of America has either sole or joint
investment discretion.
3. SHAREHOLDER SERVICING AND DISTRIBUTION PLANS
The Trust, Reserves and Funds Trust each has adopted shareholder servicing plans
and distribution plans for the Investor A, Investor B and Investor C Shares of
each Fund. The shareholder servicing plans permit the Funds to compensate or
reimburse servicing agents for shareholder services provided by the servicing
agents. The distribution plans, adopted pursuant to Rule 12b-1 under the 1940
Act, permit the Funds to compensate or reimburse the distributor (and for
Investor A Shares, the distributor and/or selling agents) for activities or
expenses primarily intended to result in the sale of the classes' shares.
Payments under the Investor A combined shareholder servicing and distribution
plan are limited to 0.25% of Investor A average daily net assets. Payments under
the shareholder servicing plan and distribution plan, respectively, for both
Investor B and Investor C Shares are limited to 0.25% and 0.75% of each
respective class's average daily net assets. Payments are made at an annual
rate, as a percentage of average daily net assets, set from time to time by the
Boards of Trustees, and are charged as expenses of each Fund directly to the
applicable class. A substantial portion of the expenses incurred pursuant to
these plans is paid to affiliates of Bank of America and BAAI.
At 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>
Investor A Combined Distribution
and Shareholder Servicing Plan:
Municipal Income and California
Municipal Bond................. 0.25%* 0.25%
All other Funds.................. 0.25% 0.25%
Investor B and Investor C
Shareholder Servicing Plans...... 0.25% 0.25%
Investor B Distribution Plan:
Short-Term Municipal Income...... 0.75% 0.75%
Intermediate Municipal Bond and
the eight single-state
Intermediate Municipal Bond
Funds.......................... 0.75% 0.75%
Municipal Income and the eight
single-state Municipal Bond
Funds.......................... 0.75% 0.75%
California Municipal Bond........ 0.75%** 0.75%
Investor C Distribution Plan....... 0.75% 0.75%
</TABLE>
---------------
* Reflects a rate change effective August 1, 2000 from 0.20%. In addition, a
separate shareholder servicing plan has been adopted for Investor A Shares
of Short-Term Municipal Income.
** Reflects a rate change effective August 1, 2000 from 0.60%.
212
<PAGE> 217
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
4. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, excluding
long-term U.S. government securities and short-term investments, for the six
months ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
--------------------
<S> <C> <C>
Short-Term Municipal Income...... $ 50,478 $52,439
Intermediate Municipal Bond...... 398,939 98,307
Municipal Income................. 398,875 98,854
California Municipal Bond........ 21,191 21,703
Florida Intermediate Municipal
Bond........................... 8,065 14,692
Florida Municipal Bond........... 3,971 10,615
Georgia Intermediate Municipal
Bond........................... 6,390 14,376
Georgia Municipal Bond........... 3,926 1,126
Kansas Municipal Income.......... 9,579 4,590
Maryland Intermediate Municipal
Bond........................... 25,948 23,982
Maryland Municipal Bond.......... 6,433 7,851
North Carolina Intermediate
Municipal Bond................. 32,954 25,173
North Carolina Municipal Bond.... 3,611 4,619
South Carolina Intermediate
Municipal Bond................. 20,617 7,701
South Carolina Municipal Bond.... -- 3,865
Tennessee Intermediate Municipal
Bond........................... 3,783 2,400
Tennessee Municipal Bond......... 380 1,065
Texas Intermediate Municipal
Bond........................... 8,589 41,243
Texas Municipal Bond............. -- 1,531
Virginia Intermediate Municipal
Bond........................... 26,315 18,855
Virginia Municipal Bond.......... 1,898 2,085
</TABLE>
There were no purchases and sales of long-term U.S. government securities for
the six months ended September 30, 2000.
5. SHARES OF BENEFICIAL INTEREST
As of September 30, 2000, an unlimited number of shares of beneficial interest
without par value were authorized for each of the Trust, Reserves and Funds
Trust. The Trust's, Reserves' and Funds Trust's Declarations of Trust authorize
the Boards 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.
6. LINES OF CREDIT
The Trust, Reserves and Funds Trust each participate with other Nations Funds in
an uncommitted line of credit provided by BNY under a line of credit agreement
(the "Agreement"). Advances under the Agreement are taken primarily for
temporary or emergency purposes, including the meeting of redemption requests
that otherwise might require the untimely disposition of securities. Interest on
borrowings is payable at a specified Federal Funds rate plus 0.50% on an
annualized basis. Each participating Fund maintains a ratio of no less than 4 to
1 net assets (not including amounts borrowed pursuant to the Agreement) to the
aggregate amount of indebtedness pursuant to the Agreement.
At September 30, 2000, there were no loans outstanding under this Agreement. For
the six months ended September 30, 2000, borrowings by the Funds under the
Agreement were as follows:
<TABLE>
<CAPTION>
AVERAGE
AMOUNT AVERAGE
OUTSTANDING INTEREST
FUND (000) RATE
-----------------------------------------------------------
<S> <C> <C>
Short-Term Municipal Income....... $ 5 6.43%
Intermediate Municipal Bond....... 55 6.93
Municipal Income.................. 17 6.48
California Municipal Bond......... 17 7.23
Florida Intermediate Municipal
Bond............................ 29 7.00
Florida Municipal Bond............ 11 6.68
Georgia Intermediate Municipal
Bond............................ 2 6.92
Georgia Municipal Bond............ 3 7.04
Kansas Municipal Income........... 11 7.00
Maryland Municipal Bond........... 2 7.02
North Carolina Municipal Bond..... 13 7.02
South Carolina Intermediate
Municipal Bond.................. 16 6.80
South Carolina Municipal Bond..... 8 6.88
Tennessee Municipal Bond.......... 8 6.96
Texas Intermediate Municipal
Bond............................ 113 6.83
Virginia Intermediate Municipal
Bond............................ 4 6.64
</TABLE>
The average amount outstanding was calculated based on daily balances in the
period.
The Trust, Reserves and Funds Trust also participate with other Nations Funds in
a committed line of credit provided by BNY. Interest on borrowings under the
committed line is payable at a specified Federal Funds rate plus 0.50% on an
annualized basis. A facility fee of 0.09% per annum of the total amounts
available under the line of credit is charged, of which each Fund pays its pro
rata share. This fee is paid quarterly in arrears. Each participating Fund 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 Funds under the committed line of credit.
213
<PAGE> 218
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
7. CAPITAL LOSS CARRYFORWARD
At March 31, 2000, the following Funds 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
FUND (000) (000) (000) (000) (000) (000) (000) (000)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Short-Term Municipal Income................... -- -- -- $ 25 -- -- -- --
Intermediate Municipal Bond................... -- -- -- -- -- -- -- $2,425
Municipal Income.............................. -- -- -- -- -- -- -- 1,402
California Municipal Bond..................... -- -- -- -- -- -- -- 1,074
Florida Intermediate Municipal Bond........... -- -- -- 498 $22 -- -- 717
Georgia Intermediate Municipal Bond........... -- -- -- -- -- -- -- 516
Georgia Municipal Bond........................ -- -- $189 -- -- -- -- 258
Maryland Intermediate Municipal Bond.......... -- -- -- -- -- -- -- 209
Maryland Municipal Bond....................... -- -- -- -- -- -- -- 149
North Carolina Intermediate Municipal Bond.... -- -- -- -- -- -- -- 366
North Carolina Municipal Bond................. -- $208 425 -- -- -- $207 --
South Carolina Intermediate Municipal Bond.... -- -- -- -- -- -- -- 15
South Carolina Municipal Bond................. -- -- -- -- -- $15 -- 112
Tennessee Intermediate Municipal Bond......... -- -- -- -- -- -- -- 315
Tennessee Municipal Bond...................... -- -- 25 -- -- -- -- 63
Texas Intermediate Municipal Bond............. -- -- -- -- -- -- -- 1,036
Texas Municipal Bond.......................... -- 92 132 -- -- -- -- 83
Virginia Intermediate Municipal Bond.......... -- -- -- -- -- -- -- 232
Virginia Municipal Bond....................... -- 326 77 12 63 -- -- 139
</TABLE>
At March 31, 2000, the following Funds utilized capital losses during the year
as follows:
<TABLE>
<CAPTION>
CAPITAL LOSSES
UTILIZED
FUND (000)
------------------------------------------------------------------------------
<S> <C>
Short-Term Municipal Income................................. $119
Florida Municipal Bond...................................... 281
North Carolina Municipal Bond............................... 27
</TABLE>
214
<PAGE> 219
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Under the 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 year ended March 31, 2000, the following Funds elected to defer losses
occurring between November 1, 1999 and March 31, 2000 under these rules:
<TABLE>
<CAPTION>
POST-OCTOBER
CAPITAL LOSSES
DEFERRED
FUND (000)
------------------------------------------------------------------------------
<S> <C>
Short-Term Municipal Income................................. $ 214
Florida Intermediate Municipal Bond......................... 325
Georgia Intermediate Municipal Bond......................... 664
Georgia Municipal Bond...................................... 521
Maryland Intermediate Municipal Bond........................ 1,488
Maryland Municipal Bond..................................... 561
Municipal Income............................................ 4,788
North Carolina Intermediate Municipal Bond.................. 786
North Carolina Municipal Bond............................... 750
South Carolina Intermediate Municipal Bond.................. 69
South Carolina Municipal Bond............................... 460
Tennessee Intermediate Municipal Bond....................... 53
Texas Intermediate Municipal Bond........................... 2,486
Texas Municipal Bond........................................ 179
Virginia Intermediate Municipal Bond........................ 1,920
Virginia Municipal Bond..................................... 93
</TABLE>
8. REORGANIZATIONS
ACQUISITION OF PACIFIC HORIZON FUNDS
On May 14, 1999, the Municipal Income Fund (the "Acquiring Fund"), acquired the
assets and liabilities of the Pacific Horizon National Municipal Bond Fund (the
"Acquired Fund"), in a tax-free reorganization in exchange for shares of the
Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired
Fund's shareholders. The number and value of shares issued by the Acquiring Fund
are presented in the Schedules of capital stock activity. Net assets and
unrealized appreciation as of the reorganization date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER ACQUISITION UNREALIZED APPRECIATION
(000) (000) (000) (000)
----------------------------------------------------------------------------------
<S> <C> <C> <C>
$19,123 $664,545 $683,668 $621
</TABLE>
On May 21, 1999, the California Municipal Bond Fund, a newly established
portfolio, acquired the assets and liabilities of the Pacific Horizon California
Municipal Bond Fund pursuant to a plan of reorganization approved by its
shareholders. The acquisition was accomplished by a tax-free exchange of shares
of California Municipal Bond Fund in an amount equal to the value of the
outstanding shares of the Pacific Horizon California Municipal Bond Fund. The
financial statements of the California Municipal Bond Fund reflect the
historical financial results of the Pacific Horizon California Municipal Bond
Fund prior to the reorganization.
<TABLE>
<CAPTION>
PACIFIC HORIZON FUND SHARE CLASS CORRESPONDING RESERVES SHARE CLASS
---------------------------------------------------------------------
<S> <C>
California Municipal Bond Nations California Municipal Bond
A Shares Investor A Shares
B Shares Investor B Shares
</TABLE>
215
<PAGE> 220
NATIONS FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
CONVERSION OF COMMON TRUST FUNDS
On July 14, 2000, certain Funds, as listed below (each an "Acquiring Fund"),
acquired the assets of certain common trust funds, managed by Bank of America,
N.A., also listed below (each an "Acquired Fund"), in a tax-free exchange for
shares of the Acquiring Fund. 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 conversion date were as follows:
<TABLE>
<CAPTION>
TOTAL NET ASSETS
TOTAL NET ASSETS TOTAL NET ASSETS OF ACQUIRING FUND ACQUIRED FUND
OF ACQUIRED FUND OF ACQUIRING FUND AFTER CONVERSION UNREALIZED APPRECIATION
ACQUIRING FUND ACQUIRED FUND (000) (000) (000) (000)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Intermediate Boatmen's Trust Company
Municipal Bond Intermediate Tax-Exempt
Bond Fund $203,437 $854,161 $1,057,598 $ 175
Intermediate Bank IV Kansas U.S. Tax
Municipal Bond Exempt Bond Fund 24,435 854,161 878,596 74
Intermediate BCA High Grade Tax
Municipal Bond Exempt Bond Fund 126,314 854,161 980,175 1,523
Municipal Boatmen's Trust Company
Income Tax Exempt Bond Fund 332,899 588,608 921,507 12,881
</TABLE>
On July 14, 2000, the Kansas Municipal Income Fund, a newly established
portfolio, acquired the assets and liabilities of the Bank of America Common
Trust Kansas Tax Exempt Fund, a common trust fund managed by Bank of America,
N.A., pursuant to a plan of reorganization approved by its shareholders. The
acquisition was accomplished by a tax-free exchange of shares of the Kansas
Municipal Income Fund in an amount equal to the outstanding shares of the Bank
of America Common Trust Kansas Tax Exempt Fund.
216
<PAGE> 221
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<PAGE> 222
P.O. Box 34602
Charlotte, NC 28254-4602
Toll free 1.800.321.7854
NATIONS FUNDS
MUNISAR (9/00)
